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WWDThursDSportswearay FASHION ™ 8 Resort continues with looks from Calvin Klein, A weekly update on consumer attitudes and behavior based Diane von Furstenberg, Carolina Herrera and more. on ongoing research from Cotton Incorporated GENERAL 1 Picky consumers and stores, and a pledge for BACK TO BASICS profits has men’s firms focusing on signature Women Turn To Practical, Affordable Jeans and Tees in Tough Economy products and shunning ancillary classifications. 3 Activist investors won a round in their proxy fight with Saks Inc. as shareholders approved In uncertain times, the tried and true is the taken a chance and offered really great fashion styles nonbinding proposals aimed at accountability. ultimate form of affordable comfort. For most that stick out from the rest. They’re thinking that if Aquascutum said it has entered a consultation women, those trusted favorites in their apparel women are going to spend the money, it is going to 5 period with its workforce during which it will talk choices are wardrobe basics: denim jeans and be something they fall in love with and is special.” to staff and unions about planned layoffs. cotton tees. These days, denim is not the only tried and 11 Business leaders consider monitoring of factories In spite of a shrinking economy and a somber true basic; the tee also resonates with consumers for violations of labor standards to be ineffective jobs forecast, 69% of female respondents tell the for its practicality and simplicity. “It’s easy, natural and unreliable, said a United Nations expert. Cotton Incorporated Lifestyle Monitor™ survey that and comfortable to just throw on a tee with your they will buy at least one pair of denim jeans in the jeans,” says Linda Heidinger, owner of Alphabets, a 12 DENIM: Contemporary denim firms see the tough boutique on New York City’s economy as a chance to add more value to their coming months. brands, grow globally and get more creative. Those numbers stand in Lower East Side, who has stark contrast to the fact that “Denim and tees are clothing you sold more than her fair share 13 BEAT: It’s been two-plus years since Cynthia Steffe female consumers are feeling can throw on and go, you can dress of tees. “Tees are the perfect left her namesake brand and owner Bernard Chaus Inc. has finally found its groove with the line. the pinch and are clearly them up or down, caring for them layering piece and the perfect sacrificing other segments is easy and affordable, and you partner for a pair of jeans.” of their wardrobes. Seven in can wear them all year long.” Heidinger asserts that 4 EYE ten female respondents tell denim and tees have become They flocked to Gotham Hall to fete Liya Kebede, the Monitor survey that the – Jamila Galloway, Djpremium.com a classic uniform for both Liya Kebede in Russell Simmons, Isabel Toledo and Bruce Weber current economic situation work and play. “It didn’t Thakoon. at the Gordon Parks Foundation gala. has affected them in a negative happen overnight, but it’s way. Sixty-five percent of females report that they certainly now at the point where jeans are just what Classified Advertisements...... 15 have less money to spend on clothing this year you grab when getting dressed, but they’re not To e-mail reporTers and ediTors aT WWd, The address is compared to last year, and 62% report that they without personality. As far as tees, you can always [email protected], using The individual’s name. will be buying less clothing this year. find new designs that express your interests and WWD IS A ReGISteReD tRADeMARK oF ADVANCe MAGAZINe PUBLISHeRS INC. CoPYRIGHt ©2009 FAIRCHILD FASHIoN GRoU P. ALL RIGHtS ReSeRVeD. PRINteD IN tHe U.S.A. While apparel sales are clearly taking a hit in this send a message about who you are for a relatively VOLUME 197, NO. 116. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with economic downturn, the category is nevertheless inexpensive price.” one additional issue in January, May, October, November and December, two additional issues in March, April, June and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division faring better than others, according to Monitor Heidinger’s observation about consumers of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services data. When female consumers are faced with favoring denim certainly has merit, according to provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage increasing expenditures on necessities, they are historical data from the Monitor survey. Fifty-seven paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. more likely to put off spending on vacations percent of female respondents reported a preference Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 PoStMASteR: SeND ADDReSS CHANGeS (70%), eating out (67%), or entertainment and for denim over casual slacks in 1995, the first to WoMeN’S WeAR DAILY, P. o. Box 15008, North Hollywood, CA 91615–5008. FoR SUBSCRIPtIoNS, ADDReSS electronics (54%) than clothing (39%). Over time, year that the Monitor started recording consumer CHANGeS, ADJUStMeNtS, oR BACK ISSUe INQUIRIeS: Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed the percentage of those female consumers deferring behaviors. In 2008, that percentage jumped to an on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all clothing purchases has astounding 75%. editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online declined, from 45% in Description of Denim Wardrobe “Denim and tees at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. May/June 2008 to 39% are clothing you can Occasionally, we make our subscriber list available to carefully screened companies that offer products and services Among Females that we believe would interest our readers. If you do not want to receive these offers and/or information, please in February 2009. throw on and go, you advise us at P. O . Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT Jeans are the perfect can dress them up or RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, 50% UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR value proposition, says down, caring for them ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER Jamila Galloway, Denim 45% 43% is easy and affordable, MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Buyer at Djpremium. 40% and you can wear them ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. com. “I’m sure there are all year long,” Galloway many reasons as to why 35% from Djpremium.com women are loving denim 31% reports. 30% DAILY even more during these 26% Easy and affordable If I have to trade 20 tough economic times, 25% care is an important “ but I believe that a lot consideration for QUote minutes of material for a 20% of denim brands are consumers today. world of peace, I’ll be glad to sacrifice it. lowering their opening 15% Denim and tees are price points, making low maintenance, and — Comedian Sandra Bernhard, happy there are few jokes” 10% the goods available to may easily be worn about President Obama. Page 4. more people.” 5% more than once before Female consumers laundering. On average, are clearly keeping 0% female respondents Don’t Need, Don’t Need, Might Probably Buy TODAY ON their eyes on the price Won’t Buy Buy 1 or 2 Items Several Items report to the Monitor tags and report to the survey that they wear Monitor survey that a pair of jeans 2.7 days they are willing to sacrifice certain features to get and a tee 1.6 days between washes. a cheaper pair of jeans. The largest share say that Value, practicality, comfort, ease of wear and they are willing to give up the brand they prefer ease of care are just a few of the reasons that women WWD (47%). Forty-two percent were willing to give up count on classic denim and tees as tried and true .com environmentally friendly features and 38% would basics in these challenging times. • More resort images from sacrifice quality in order to pay less. On the other Calvin Klein, Diane von Furstenberg, hand, female respondents were least likely to give up This story is one in a series of articles based on find- Carolina Herrera, Helmut Lang, Yigal ings from Cotton Incorporated’s Lifestyle Monitor™ comfort (25%) or fit (27%). “Companies are doing Azrouël, Tuleh, Yeohlee, Brian Reyes, amazing jobs at imitating designer trends in denim tracking research. Appearing Thursdays in these Rag & Bone and Rena Lange and at affordable prices,” Galloway affirms. pages, each story will focus on a specific topic as it “A lot of our denim vendors are definitely sticking relates to the American consumer and her attitudes • Additional images from Eye parties: with basics in this tough economy,” observes Jennifer and behavior regarding clothing, Baby Buggy, Salvatore Ferragamo Scott, denim buyer for Tobi, an online retailer. appearance, fashion, fiber selection and and Gordon Parks events “However, I have noticed that some brands have many other timely, relevant subjects. • WWD Eye blog: A visit to the

PHoTo By TALAyA CeNTeNo TALAyA By PHoTo new club Avenue Diane von Furstenberg resort 2010. • Global breaking news WWD, THURSDAY, JUNE 4, 2009 3 WWD.COM Saks Shareholders Score in Proxy Fight Cavalli Changes Mind, By Kristi Ellis with the two parties, he said. Decides to Sell Stake “Of course we’ll consider it,” Sadove said after the meet- WASHINGTON — Activist investors appear poised to do to ing. “That’s one of the reasons we took a ‘no’ position on the By Luisa Zargani Saks Inc. what William Ackman failed to accomplish in his staggered board [proposal] because we wanted to hear what attempt to transform the board of Target Corp. shareholders had to say.” MILAN — Much like a modern-day Hamlet, Two shareholders — P. Schoenfeld Asset Management Now that they’ve spoken, Sadove, citing New York Stock Roberto Cavalli is weighed down by his own LLC and the New England Carpenters Pension Fund — won Exchange rules, indicated the company and its board have dilemma: to sell or not to sell? the fi rst stage in their proxy fi ght with Saks on Wednesday four months to respond to shareholders. While only a week ago the designer said as stockholders approved two nonbinding proposals in their Peter Schoenfeld, chairman and ceo of Schoenfeld, said, he was “not so sure [he] wanted to sell in the effort to make the luxury retailer and its board more ac- “We trust the board will respect the wishes of shareholders end,” a spokesman for Clessidra SGR SpA said countable to investors. and implement the declassifi cation recommendation on an Wednesday that Cavalli has signed a letter of At Saks’ annual meeting held here, shareholders ap- expedited basis. We believe that shareholders will approve intent with the Milan-based private equity fund a board declassifi cation amendment to for the sale of a minority stake in the house. A Saks Saks’ certifi cate of incorporation by the deal could be fi nalized by the end of September, shareholders required 80 percent of outstanding shares said the spokesman. However, he declined to approved vote if the board presents and provides comment on the terms of the agreement. two genuine support to such a proposal.” The designer did not return calls seeking nonbinding At the meeting, Rob Davis, a comment, but a Cavalli spokeswoman said proposals. Schoenfeld analyst, pressed his firm’s Clessidra and the designer are negotiating case, accusing Saks management of mak- the sale of a 30 percent stake in the company. ing “missteps,” which led to “underper- Previous reports pinned the stake at 20 percent. forming stock prices” and below-average The deal with Clessidra would help Cavalli operating margins. Margins and sales per develop his business without turning to banks square foot had fallen short of Neiman — which is important in light of short-term Marcus’ results, he noted. debt of 21 million euros, or $30.8 million, “We believe this inferior performance Roberto Cavalli SpA has with several banks. is due to Saks’ presence in many undesir- The company’s debt has grown from 9.1 mil- able locations, which…caused low sales lion euros, or $12.4 million, at the end of 2007, productivity and led to unsatisfactory re- according to the company’s balance sheet ob- turns on investment,” said Davis. tained by WWD. Dollar fi gures are converted Sadove told shareholders during the from euros at average exchange rates for the meeting that the company is reviewing periods to which they refer. stores with expiring leases and is com- The balance sheet shows Cavalli’s net Stephen I. mitted to closing “unprofi table” ones. profi t in 2008 dropped 90.6 percent to 822,922 Sadove In an interview after the meeting, he euros, or $1.2 million, from 8.8 million euros, declined to disclose how many of the or $12 million, in 2007. Sales inched up 1 per- company’s stores are bumping up cent to 112.9 million euros, or $166 million, For more on the company, against lease expirations, but he said from 112 million euros, or $153.4 million. see WWD.com. it is “not many.” Saks owns 29 of its 53 In the report, the company said 2008 was full-line stores, including the Chicago “marked by an uncertain global economy that and Fifth Avenue fl agships, and leases morphed into a real fi nancial and economic proved a proposal submitted by P. Schoenfeld, all of its 52 Off 5th units. crisis in the second half of the year.” The fi rm, which controls 1.5 percent of Saks common stock, “If we have an unprofi table store, we’ll “while having a high-profi le customer, is not to declassify Saks’ 10-member board and reduce di- work with the developers and in some cases immune to the contraction of consumer de- rectors’ terms to one year from three. they will work with us because they are not mak- mand globally, which has extended to all prod- A second proposal submitted by the pension group to ing money on the stores either,” he said. uct categories and geographical markets,” said change Saks’ plurality voting structure to a majority vote He noted the company cut $50 million in costs last fall and was also approved. another $44 million in costs in the fi rst quarter of this year. However, an attempt by P. Schoenfeld to unseat C. Sadove predicted “stabilization” in business this year, Warren Neel, who sits on the board’s governance and nomi- noting that markdowns will begin to “normalize.” For more on the designer, nating committee, was unsuccessful. Neel was reelected to “I think it is a different world,” he said. “I use the term: the board for another three years. ‘Don’t let a good recession go to waste,’ as an opportunity to see WWD.com. Stephen I. Sadove, chairman and chief executive offi cer say, ‘Hey, let’s challenge ourselves about every element of of Saks, said he expects to release the fi nal vote counts in how we operate and say this is a brand that is going to be two weeks. The board will take the two approved share- around. We’re going to survive this. We’re going to get to the the report. Sales in Italy dropped 13 percent to holder proposals into consideration and hold discussions other side.” 27 million euros, or $39.6 million, while sales outside the European Union grew 11 percent to 57.5 million euros, or $85.5 million. Cavalli’s earnings before interest, taxes, depreciation and amortization sank 80.5 Zegna Profi ts Fall 10.6 Percent in Year percent to 4 million euros, or $5.9 million, from 20.5 million euros, or $28 million, the By Jean Scheidnes in 2008, bringing the total to 291. year before. The drop could partly stem “The fi nancial tsunami that struck the from unpaid royalties from Ittierre SpA, ERMENEGILDO ZEGNA GROUP SAID world economy in the second half of 2008 which produces and distributes the Just profits declined in 2008 although interna- caused softer growth than forecast, even Cavalli line under license. Ittierre fi led for tional expansion delivered higher revenue. if our growth was in line with the most the Italian equivalent of Chapter 11 bank- Including extraordinary items, net prof- dynamic global luxury brands,” chief ex- ruptcy protection in February. The brand it fell 10.6 percent to 62.3 million euros, or ecutive offi cer Ermenegildo Zegna said. is Ittierre’s biggest license, generating 2007 $91.7 million. Revenues rose 3.2 percent “Despite the current economic environ- revenues of about 240 million euros, or $329 to 870.6 million euros, or $1.28 billion, as ment, I believe a rebound is possible be- million. Other Ittierre licenses include C’N’C emerging markets offset softening sales in ginning in 2010, and as such we are even Costume National, Galliano, VJC Versace the U.S. and Japan. Dollar fi gures have been more committed to maintaining and re- and Versace Sport. Cavalli has claimed he converted from the euro at average exchange inforcing our share of the luxury men’s was owned 20 million euros, or $26.5 million, rates for 2008. market through aggressive investments. in unpaid royalties by Ittierre. At constant exchange rates, revenue in- While the current economic slowdown Cavalli confi rmed in the fi nancial fi ling creased 5.7 percent. China, India, the Middle will surely impact our 2009 bottom line, that it was evaluating the idea of selling a mi- East and Latin America together generated I fi rmly believe now is an opportune time nority stake to an investment fund. more than 25 percent of revenue. Sales in to seize opportunities so that when the The arrival of Clessidra may lead to the India, where Zegna opened its fi rst directly crisis ends — and no one can say with appointment of a chief executive offi cer, and operated store last year, doubled, while rev- certainty when that may be — we will the buzz here is that a roster of potential can- enue in China rose 30 percent, making it the emerge as winners.” didates to the post include Michele Norsa, group’s second-largest market. The fi rm said it is “intensifying” its in- ceo of Salvatore Ferragamo; Gian Giacomo Sales increases by geographic area were vestments this year as growing its retail Ferraris, ceo of Jil Sander; Stefano Sassi, ceo 50 percent in the Middle East, 18 percent network remains its most important stra- of Valentino Fashion Group, and Giancarlo Di in Eastern Europe, 15 percent in Latin tegic initiative. In Asia, it is expanding its Risio, who is expected to leave Versace soon. America and 7 percent in South Korea. network of Peter Marino-designed fl agship A source said the latter may “make sense” Apparel, including sales from Zegna’s stores, with openings in Tokyo’s Shinjuku given Di Risio’s past role as Ittierre’s ceo and women’s brand, Agnona, generated 75 percent district, Dubai and Hong Kong planned contacts with Cavalli. of revenues; accessories accounted for 15 per- for this year. Zegna is adding 20 shops Looking ahead, the company said in the cent, and textiles the remaining 10 percent. worldwide, with 15 in greater China (in- report it is focused this year on expanding Sales of Zegna-licensed products, including cluding Hong Kong, Macau and Taiwan), A Zegna look. in emerging countries and those where the fragrances, eyewear and underwear, acceler- two in Singapore, three in Eastern Europe brand is still not widely present, while con- ated strongly, the company said, adding those and one in Houston. In Europe, Zegna is solidating sales with existing retail custom- categories and small leather goods contrib- renovating stores in Barcelona, Lugano, For more on the fi rm’s ers. Cavalli also said it expects “a slight drop uted signifi cantly to total revenue. Frankfurt, Milan-Malpensa and Rome- efforts, see WWD.com. in sales” in 2009 in light of its performance Zegna opened 15 directly operated stores Fiumicino. during the fi rst few months of the year. 4 WWD, THURSDAY, JUNE 4, 2009 WWD.COM Parks & Rec The fashion world showed up at Gotham Hall in full force Tuesday night to fete Liya Kebede, Russell Simmons, Isabel Toledo and Bruce Weber, all of whom were honored at the biannual Gordon Parks Foundation gala. An auction of photos by Herb Ritts, William Klein and Robert Mapplethorpe helped to raise $350,000 for the foundation, which is only $100,000 less than the take two years ago. Many lots even went well above their estimated value prices. The most expensive item of all wound up being a 1955 Parks photograph of five handsome young men called “Drugstore Cowboys,” which went for $20,000 and looked like a prototype for Weber’s all-American Ralph Lauren campaigns. Weber acknowledged the late photographer had been a big inspiration for him when he was growing up. “Other kids were playing baseball,” he said. “I was looking at Gordon Parks photos in Hugh Jackman Life magazine.” EICHNER in Louis Vuitton. Elsewhere, socials including Rachel Peters, Lulu de Kwiatkowski and Alex Kramer feted Aston Martin’s new DBS Volante model at Cooper Square Hotel,

while Birkin-toting mommies brought their kids STEVE OTHERS BY s to the third annual Baby Buggy Bedtime Bash s Jerry and Jessica held in Wollman Rink. Fuzzy WordGirl and Seinfeld, in Uniqua from the “Backyardigans” greeted Proenza Schouler. Christy Turlington pajama-clad youngsters (the suggested dress in Marni. code) before they ran wild through the skating rink, transformed into a carnival complete Lulu de with waterslides, cotton candy, go-karts and Kwiatkowski airplane rides. Parents like Jerry and Jessica Seinfeld, Samantha Boardman, Kalliope Karella, Beth

Buccini and Melania Trump looked on, or in some SCOTT RUDD; ALL BY AWARDS PARKS cases accompanied their tots. sLiya Kebede “I went on the boat ride with them,” said in Thakoon. Christy Turlington as her kids Grace and Finn sat

transfixed by musical act Outback Aussie. “But GORDON DAWES; I can’t do that swing thing. It makes me nauseous.” Another Aussie made a brief appearance, much to the grown-ups’ delight. Hugh Jackman accompanied wife Deborra-Lee MARCUS BY For more images, Furness and their children — and looked a bit overdressed in a Louis Vuitton suit. see WWD.com. “This is not what I would normally wear,” he apologized, Ruben and before running out to another event, while grabbing a hot dog Isabel Toledo for the road. BERNHARD PHOTO

I got interviewed by Johnny Carson. That put me on the WWD: What do you think of someone like Sarah Silverman, who map. Everything was a step up. But now, nobody goes on does a lot of jokes about what comes out the other end? STAND BACK Letterman and becomes an overnight sensation. You can do S.B.: She’s fine. She suits her generation. But I want to see your thing on the Internet, you can do a reality show, but something else. I want to see “August: Osage County” where it’s In 1989, Sandra Bernhard, a young comedian who’d those things aren’t really reflective of somebody’s talents. I funny but it hits you right between the eyes. I’ve always been starred with Robert De Niro in Martin Scorsese’s “The King mean, look at Kathy Griffin. She was bumming around for more drawn to Stevie Nicks and Joni Mitchell and Chrissie Hynde of Comedy,” debuted her one-woman show “Without You I’m a long time doing comedy but she was willing to go there and Tina Turner and Nina Simone. You sat there and it was like Nothing.” She sang, she told jokes and did impersonations and make a complete fool of herself. And that’s the appetite you were watching theater because they were so committed. of her favorite childhood divas that walked the line between of the American public. They want their performers totally reverence and parody. Twenty years later, at 53, she’s bringing stripped down and vulnerable so they can go “look at that WWD: Since the mid-Nineties, you’ve been involved with the the show back to New York’s Town Hall for one night only on idiot.” I can’t say these are great times for young artists. Kabbalah. You seem way too ironic for a spiritual program that June 10. Here, she talks about why Lady Gaga, Kathy Griffin There’s no longevity. Lady Gaga? I just don’t see any of the has more accessories to sell than the ground floor of Barneys. and Sarah Silverman don’t hold a candle to Stevie Nicks and stuff lasting for very long. S.B.: Well, when I started going that wasn’t what drew me in. I Tina Turner, her diminishing respect for the was raised Jewish, I loved the traditions and Kabbalah Centre and the effort to find humor the mystical feelings of the holidays so it just in the age of Obama. seemed like something that young women — Jacob Bernstein hadn’t been allowed to study and this place opened it up. I went in 1995 before there was WWD: Tell me why you chose to revive any hoopla and I got the best out of it. Then the show. Was there a reason beyond the the wheels started to fall off. I’m not nearly as anniversary? involved with that place as I was. Unfortunately, Sandra Bernhard: People wanted to see money corrupts everything, even spirituality. it again. They always asked me if I’d do And it’s hard not to get caught up in the Stevie Nicks and women of rock ‘n’ roll. excitement of glamour and fame. I have a tendency to write a new show every six months, but I thought “f--- it.” Of WWD: Wasn’t the bottled water the biggest course, I always add new things because it’s indication something was amiss? impossible for me to reenact it the way it was. S.B.: Originally, it made sense because when So there’s some new stuff in there as well. you expose water to different energies it does effect the molecular qualities of the water. WWD: Like what? And they actually used to have big bottles of S.B.: Well, there have been a lot of changes water in the shul when they did Torah readings in the last 20 years. I have a 10-year-old and stuff. But when they started selling it, it daughter. So I talk about being a mother. seemed very gimmicky to me as I’m sure it did Technology. Whatever’s in the moment. to most people.

WWD: When you arrived on the scene, black Sandra WWD: Does it get harder to be bitchy as you comedians talked primarily about race, Bernhard get older and become more spiritual? Jewish comedians talked about their mothers, S.B.: You definitely have to learn to strike a and almost no one besides you talked about balance in how you critique people. Except celebrities. Now, everyone does it from Kathy Griffin-- WWD: Madonna and Cyndi Lauper both showed up at her show. when it comes to George Bush and Sarah Palin. Because S.B.: I never did it that way. If I called people out, I came from a S.B.: They don’t want to fall behind. They go, “Uh oh, I better do people’s lives were in their hands. So I have no compunction different place. If I do a piece about Britney Spears, I set her life this,” or, “Uh oh, I better do that” so that they can stay relevant. about calling them out. But if it’s just some performer who I straight and she falls in love with me and I have to break it off. I enjoy listening to music where I don’t have to see the person. If don’t think is up to snuff, there’s a way of having fun with it There’s always an interesting way of talking about pop culture I have to see the person to enjoy it, I’m not that interested. without destroying their entire game. without doing a didactic obvious critique of it. Because anybody can do that. And everybody does. So I keep creating things that WWD: Why is everyone in comedy today obsessed with poop? WWD: It does seem that comedians are having a tough time are more theatrical. And that’s how I try to stay relevant. S.B.: It’s shock value. People think they can recreate the figuring out what to do with Obama. Lenny Bruce aesthetic, but Lenny Bruce was really waking S.B.: This is how I feel about it: If I have to trade 20 minutes of WWD: How do you think things have changed for women in people up from their somnambulant state. Politically and material for a world of peace, I’ll be glad to sacrifice it. After eight comedy over the last two decades? culturally. So now it’s like we have people who think that’s years of the Bush administration, I’d be thrilled never to have to S.B.: I think there have been big changes for everybody. it, [that it’s only about the scatalogical]. I don’t really mention any of those people’s names again. When comedians After “The King of Comedy,” I started doing Letterman and understand it. have run out of material on that level, it’s a healthy sign. WWD, THURSDAY, JUNE 4, 2009 5 WWD.COM

Gucci, Richemont Face China Bank in Court MEMO PAD to appear in the pages, as well as the most recent pair. He expressed the wish By Matthew Lynch Harold Baer in Manhattan issued a tempo- MOSS TAKES ACTION: It’s no surprise that “our children and our grandchildren” rary restraining order requiring the bank to Kate Moss takes preserving her image see the right of gays to marry as being NEW YORK — Gucci America Inc. and freeze Cho’s account and hand over related seriously, and it seems the model is “as natural as the air we breathe.” Compagnie Financière Richemont brands documents. A year later, Judge John G. Koeltl willing to take legal action to protect Raising his glass, he said, “To marriage Chloé and Alfred Dunhill are squaring off entered a $4.3 million judgment against Cho how she’s portrayed. Moss apparently equality!” And then, “The bar is open!” in federal court with one of China’s state- for trademark infringement. has threatened to sue Now Magazine, a Sulzberger told WWD the decision owned banks over a multimillion-dollar Gucci, Chloé and Alfred Dunhill said Cho U.K. weekly celebrity magazine, after it to open the pages to gay couples six Internet counterfeiting judgment. still owes $4 million. printed a story earlier this year suggesting and a half years ago was “surprisingly Despite a court order, the Bank of Attorneys for the brands argued that after the model was pregnant. “We can not a big deal.” He recalled a lunch China has not produced documents re- the judgment they discovered Bank of China confi rm that we have been contacted with then-executive editor Howell Raines lated to accounts held by counterfeiter had permitted Cho to drain his account. by Kate Moss’ legal representatives and and now-chief executive Janet Robinson Kelvin Cho, according to legal papers fi led They asked Koeltl to hold the bank in con- will not be commenting further until the in which Raines asked whether there Tuesday in Manhattan. tempt of court in July 2008, but in December matter is resolved,” a spokesman for would be negative business implications Gucci, Chloé and Alfred Dunhill are seek- the parties reached an agreement requiring IPC, Now’s publisher, said Wednesday. to the decisions; Robinson thought not. ing a contempt order and $4 million in dam- the bank to produce the records and pay a A spokesman for Moss could not be New York Times staffers in attendance ages from the bank. settlement of $190,952. reached for comment. It’s not the included food reporter Kim Severson, An attorney for the bank did not return a However, this week the brands again asked fi rst time the model has taken action whose commitment ceremony appeared call seeking comment. the court to hold the bank in contempt for against pregnancy rumors — in March, in the paper in 2006; Style editor Trip The legal maneuvering stems from a failing to comply with “nearly every condition London Sunday tabloid The News of Gabriel, and style reporter Eric Wilson. 2007 infringement lawsuit in which the of the settlement,” including payment. the World published an apology for a The grim economic realities of the luxury brands alleged that Cho, a native of In a memo related to the new motion, at- February article stating that Moss was newspaper business intruded somewhat Malaysia, sold counterfeit Gucci, Chloé and torneys accused Bank of China of continuing pregnant, after her lawyers began legal on the cheerful occasion, as the Alfred Dunhill handbags, belts and watches to refuse to provide Cho’s complete account proceedings. — Nina Jones publisher of the Boston Globe, Steven on a handful of Web sites with names such as records. Instead, they said they received “an Ainsley, noted from the podium that Myreplicahandbag.com. entirely useless list of fi gures that convey no EVEN THE WEB GUYS DON’T KNOW THE his spirit felt “lifted in a way I haven’t Customers wired payments to Cho’s Bank useful information about defendant Cho’s ANSWER: What is the future of media? experienced in awhile, since these of China account in the U.S., which the bank business or the location of the assets that On an Internet Week panel sponsored are not joyous times in the newspaper then transferred to his Chinese account, ac- passed through the BOC accounts.” by I Want Media and convened to business.” The New York Times Co. has cording to court documents. Between May In addition to the contempt order, Gucci answer that vexing question, Twitter been locked in a bare-knuckle fi ght with 2004 and August 2007, Cho deposited about and Richemont are seeking $4 million in co-founder Jack Dorsey offered a clue the union that represents the Globe’s $850,000 into the foreign account, the court compensatory damages and an order requir- that might not hearten the journalistic newsroom employees over proposed cuts papers said. ing the bank to pay a daily fi ne until it com- faithful: He said the number-one type in benefi ts and pay, and earlier this year In March 2007, U.S. District Court Judge plies with all terms of the settlement. of search on Twitter is what he called The Times Co. threatened to shut the “the vanity search” — for one’s own paper down. The most audible laugh at name or company, for example. And Ainsley’s comments — albeit a nervous Bonnie Fuller said Twitter meets an one — was Sulzberger’s. — I.C. Aquascutum May Be Set for Layoffs “enormous need people have to be stars in their own lives,” comparing it CRYSTAL CLEAR: There were no MTV By Samantha Conti ies had signed a letter of intent for the pos- to a tryout for a reality show. cameras present at the dinner hosted by sible purchase of Aquascutum from Japan’s But Gawker Media head Nick Denton Elle magazine on Tuesday evening atop LONDON — Aquascutum is gearing up for layoffs. Renown Inc. At the time, the company said it admitted to surprising himself with his the Gramercy Park Hotel, but the second The company said Wednesday it has was negotiating the terms of the deal and no latest take on the media landscape: that season of “The City” has already been entered a consultation period with its “formal agreement” has been reached. original content is ultimately the most fi lming inside its offi ces. “They actually workforce. During consultation periods, Aquascutum chief executive offi cer Kim effective and will prevail. Gawker began, blend in really well,” said editor in chief employers talk to staff and unions about Winser resigned suddenly last month after he said, when aggregation was rare, but Robbie Myers, who was hosting a dinner planned layoffs. Renown turned down her offer to buy the now that curation is everywhere, the for Swarovski creative director Nathalie The brief statement said details of the outerwear, ready-to-wear and accessories goal is to offer something new. Colin. “It’s been interesting to see who consultation period “will not be clari- brand in a management buyout that she had And it’s not all self-regard out there. embraces it and who runs from the fi ed until it is confi rmed whether YGM been working on for about 18 months. Denton, Craigslist founder Craig Newmark, cameras.” Myers also mentioned that the Trading will be pursuing their purchase The statement Wednesday said a first and Wall Street Journal deputy managing June cover, featuring Megan Fox, is part of the business.” consultation meeting would likely be held editor Alan Murray all said they had come of a new test concept for Elle. For the As reported last week, Hong Kong-based toward the end of June. The brand employs to use Twitter as an aggregation tool, fi rst time, the magazine published two YGM Trading Ltd., Aquascutum’s Chinese more than 400 people and has an outerwear following trusted sources and their links different newsstand covers — one has licensee, confi rmed that one of its subsidiar- factory in Northamptonshire, England. to news items. “It turns out my friends Fox posing in a more typical look for Elle are pretty good at curating news,” said and the other has “The Transformers” Newmark. Dorsey himself said that what actress in a more provocative pose. At Twitter is missing is “a narrative….Getting the dinner, Myers and Colin were joined into a mass repository with no context is by creative director Joe Zee and fashion Luncheon Raises Funds for KIDS overwhelming.” news director Anne Slowey, “Gossip Girl” NEW YORK — Connie X. As for who’s going to pay for all of stylist Eric Daman, stylists Laura Lightbody Rishwain, president those news sources’ overhead, Murray and Lori Goldstein, Museum of Modern of Ugg Australia and argued newspapers had mistaken their Art curator Paola Antonelli and Horatio Simple, couldn’t help most popular content for their most Silva and Karla Martinez from T: The New getting choked up after valuable content, citing The New York York Times Style Magazine. — Amy Wicks being lauded by two of Times’ short-lived decision to charge for her closest colleagues its star op-ed columnists. And while no MULTIMEDIA: Belgian designer Kris and honored for support- one has truly fi gured out what readers Van Assche, who designs Dior Homme ing children’s causes. will pay for online, Murray pointed to plus signature collections for women “It just changes your the example of community newspapers, and men, has donned another hat. On life forever when you see which are often buoyed by exclusive Tuesday night in Paris, he unveiled a the faces on the kids when local sports coverage that consumers new large-format fl yer-cum-magazine you give them products,” might value enough to pay for. called Londerzeel. Part literary, part whether it’s shoes, clothes, Moreover, while around 16 million daily visual (and highlighting works by books, bicycles or toys, readers pass through to sample the artist Andrea Mastrovito, for instance), said Rishwain, speaking Journal’s content online, he said, there Van Assche served as its art director. Tuesday at the Women is a core of about one million who are Barbara Polla was editor in chief and in Industry luncheon to willing to pay, which might be enough. Martin Venet oversaw graphic design. benefi t Kids in Distressed But Denton said he would never charge Londerzeel had an initial print run of Situations at the Parker for Gawker Media content, and anyway, 1,000 and is expected to come out Meridian Hotel here. writers hate the seclusion behind a three times yearly, with distribution Michelle Paige KIDS’ founder Karen Bromley, CENTENO TALAYA Since its inception Paterson and chairman Peter Rosenthal and pay wall, because, he said, “We are all where Van Assche’s clothes are sold. in 1985, KIDS has dis- Connie X. Rishwain president Janice Weinman. egomaniacs.” — Irin Carmon The current copy contains four of fi ve

tributed more than $750 PHOTOS BY Mastrovito drawings Van Assche hopes million in products to 65 A CEREMONIAL TOAST: It took a lot will run as advertising for his signature million children who could be victims of pov- a healthier adult life.” of Googling, Facebooking and old- line in fi ve magazines this September. erty, abuse, homelessness or natural disasters Also honored was Pilar Guzmán, edi- fashioned shoe-leather reporting to “I quite like the freedom of an artist and Ugg has helped in the mission. “I want tor in chief of Cookie magazine, who de- track down nearly all 300 same-sex just expressing his vision,” said Van to thank my mom and dad,” Rishwain said. scribed KIDS as “a surrogate parent to couples that have appeared in the Assche. Meanwhile, the designer is also “They gave me the culture to always give.” millions of children.” Sunday New York Times’ wedding the subject of “Kris Van Assche, Mor For the 155 guests at the luncheon, which Fatima Goldman, executive director and pages since gay ceremonies were fi rst O Muerte,” a book written in French raised about $77,000, it was also a chance to chief executive offi cer of The Federation of included in 2002. (Contact information by Polla and illustrated by Mastrovito. meet New York state’s fi rst lady, Michelle Protestant Welfare Agencies, spoke about is jettisoned after three months for “It’s really like the story of someone I Paige Paterson. She was honored for her how her organization has received major privacy reasons.) But there many of admire deeply and someone I love,” said work battling childhood obesity. support from KIDS, with donations to help them were, beaming and mingling at Polla, adding the book doesn’t quite “KIDS supports our fi ght against child- furnish a shelter for pregnant women. The Times Co.’s cocktail party Tuesday fi t into any established literary genre. hood obesity” through donations that can “The donation of a toy helps a child to night, a Pride Month celebration. It’s published by L’Age d’Homme, and motivate children to exercise, Paterson said. know he is not forgotten,” she said. Times chairman Arthur Sulzberger Jr. available in France and Switzerland for “They’ll have a safer workout on the road to — David Moin led a toast, surrounded by the fi rst couple about $25. — Jennifer Weil 6 WWD, THURSDAY, JUNE 4, 2009 WWD.COM Men’s Vendors Focus on Core Business as Retail Consolidates Continued from page one helped establish the brand. “Changing shopping behaviors are prompting stores to focus on core brands and core products,” said Daniel Butler, vice presi- dent of retail operations for the National Retail Federation. “With so many brands in so many classifications, it’s a matter of how many collections you can show on the floor,” said Mario Bisio, owner of Mario’s in Portland, Ore., and Seattle. “You have to decide and make sure you’re balanced.” When brands branch out beyond their core, they’re going up against new competitors, many of which are experts in their par- ticular categories. “You’ve got to look at [a brand extension] in reference to the rest of the market,” he said. “There are only so many dress shirts you can sell, so you have to determine who does it best.” Across the board, men’s wear brands and manufacturers are retrenching as retailers adopt a buying strategy that allows little room for error. The result of this sink-or-swim approach: Fall as- sortments are heavy on tried-and-tested merchandise and key items that amount to brands’ greatest hits. “From a fashion perspective, it’s good for a brand to present a holistic view,” said Eric Jennings, vice president and men’s fashion director for Saks Fifth Avenue. “But you can’t hold onto a business unless it’s profitable. At the end of the day, we’re retailers, and it has to sell.” Jim Jergens, national sales director for Tommy Bahama’s men’s, agrees: “Where retailers used to buy shallow and wide, they now look narrow and deep. The s Vineyard Vines bottom line is that they are looking for key items that invested in its can drive their businesses.” For Jergens, that means WwD core neckwear buyers are assigning more dollars to products that are business for next “identifiably Tommy Bahama,” like print camp shirts, ca- Men’s season, adding sual knits and easy-fit denim bottoms. new styles. Similarly, Italian company Belstaff has worked to broaden its appeal beyond its iconic jackets via accessories and designer sportswear. But the company said retailers have become increas- ingly interested in the motorcycle jackets that made it famous, and created a in-stock program to feed the demand. The merchandise strategy also has impacted preppy acces- sory and sportswear maker Vineyard Vines, which has funneled resources to its core neckwear collection rather than investing in new categories. Co-founder Shep Murray said the brand’s expand- ed selection of woven and striped ties should help drive sales with otherwise cautious consumers. “People buy what brands are best known for, but in order to drive business, you need new things,” explained Murray. “Our solution was to make new things within our strongest category.” The trend toward core products is reshaping JA Apparel’s business. Best known for tailored clothing — which it produces domestically — the brand has decided to license two major cat- egories: sportswear and dress furnishings. “As business has toughened, it’s harder to compete for shelf space with companies that specialize in these businesses,” said Marty Staff, the company’s chief executive officer. Staff said the deals with the licensing partners are not finalized and declined to name the companies. However, the move, Staff said, will enable the company to do what it does best: suits and sport coats. It’s launching a private label tailored-clothing program this fall — a company first — and may look into manufacturing for other brands under license. While the changes will bolster JA Apparel’s position as a suit producer, they also reflect forces that are coalescing in the mar- JA Apparel has Van Heusen, already ketplace: the rise of the specialists. restructured to among the top shirt “The strong are getting stronger,” said Staff. “Those companies focus on its primary brands in the country, in solid positions in a particular category are gobbling up market business: tailored has garnered additional share. Retailers aren’t going to play around with suppliers in 50 clothing. floor space for fall. doors. They want players they can do business with.” Retailers’ drive to focus on the strong and few is good news for classification behemoths like Phillips-Van Heusen, which, even before the market while Paul Smith has a full complement of products, from underwear and shoes crashed, owned much of the furnishings business. Its share, according to company to outerwear. And even some of the younger men’s labels continue to add more sources, has only increased since then. product categories. “Department stores are designed to partner with those who give them opportunity “I feel very positive about brand extensions in general,” said David Fisher, executive to maximize their business,” said Steve Correia, president of PVH’s branded dress vice president and general merchandise manager of men’s wear for Bloomingdale’s. shirt group. “We have the scale to leverage workload, expertise and manpower to “But it takes time for a brand to become good at a lot of different categories.” drive business. To increase your turn, you need critical mass.” The bottom line, he said, is that all categories “have to match and be compatible” That reality has affected the brands within its portfolio, too. — which can sometimes be a challenge when they’re licensed to other companies. Major shirt brands — like Van Heusen, which is returning to the former Macy’s Fisher said a lot of brands have experienced growing pains. Theory, for example, Florida and Macy’s West divisions after a long hiatus this fall — have garnered more has “terrific” sportswear but struggled at first with its tailored clothing and dress fur- floor space, but some of the company’s premium shirt brands that have less penetra- nishings. “But they’ve got it down now,” he said. tion have lost some placement, according to the company. Same thing for Michael Kors, Fisher added. And Canali needs to improve its design “Not everyone can support the co-op, can’t take the margin,” said Mitch and sourcing in sportswear for it to have more of an impact. Lechner, the president of the company’s designer shirt group. “It’s difficult for “I do believe in brand extensions, but when they’re well thought out,” he said. “It smaller players.” can be meaningful, but a company has to be committed and keep plodding along at it.” At the better end of the market, Canali said this guarded approach to buying has Tommy Fazio, men’s fashion director for Bergdorf Goodman, said Tom Ford has decreased the adoption rate for its new categories, which include a revamped sports- probably done the best job of all the newer designers in creating a lifestyle collec- wear line and hosiery. “This has not been the season to launch new categories,” said tion. Michael Bastian and Thom Browne also have had success. And he believes that Giorgio Canali, U.S. president. Instead, the Italian luxury brand has focused on bol- Kiton and Brioni moving into sportswear is a potential opportunity for these brands stering its heritage suit business by retooling its price structure and offering more and their retail customers. options below $2,000 retail. “Business will pick up, but retailers are less likely to try Brand extensions “finish the circle,” he said, noting that it gives a manufacturer a new things in a big way,” said Canali. chance “to grow the business and reach out to a different customer base.” That doesn’t mean there aren’t men’s brands that have successfully broad- “Customers are always looking for something new from a strong brand, even in a ened into lifestyle labels — Polo Ralph Lauren and Giorgio Armani tops among down economy,” said Bob Mitchell, co-president of Mitchells/Richards. But it boils them. Ermenegildo Zegna, which has nailed its move into a variety of catego- down to “execution. It’s like retailers in the men’s wear business wanting to get into ries, also is pointed to by most stores as the poster child for brand extensions, women’s. You need the right people [to pull it off].” There is only ONE Original... period!

The Original Outdoor Clothing Company® www.woolrich.com

Buffalo Check wool shirt circa 1850 8 WWD, THURSDAY, JUNE 4, 2009 In the Yigal Azrouël Calvin Klein Sheer, festive or hip — the resort collections Mix have it all. Calvin Klein: There’s a lot to be said for formal fashion shows, even low-key in the showroom. Yet a long-standing argument against such presentations for resort is that inevitably, some designers will cross over to the too-editorial side. Nothing against the entertaining flourish — DVF’s hair bows, Oscar’s anklets. But at Calvin Klein, Francisco Costa went too far with the clothes in a season endlessly touted as all about dressing for reality — nearly every piece was transparent. Which is not to say the show lacked pretty things: When girls in organza pants practically mooned the audience, they did so with charm. Working within an artsy-sportif motif, Costa layered filmy cotton organdy jackets, tulle T-shirts and airy knits. He also showed some dresses in muted nylon mesh and organza tucked, wrapped and pulled into gauzy confections — lovely indeed. But almost everything needed an underpinning, and anyone wanting to know what Calvin Klein resort will look like in the stores needs a trip to the showroom.

Diane von Furstenberg: Ipanema, here she comes. Diane von Furstenberg sent her girls packing to Brazil and neighboring lands — “from disco in Rio to polo in Argentina” — in a collection that was fun, feisty and oh so hot, occasionally too much so. She cut her dresses short and sensual, some with one shoulder, and kept to a party palette of tropical hues. Polkadots were a recurring motif, rendered in oversize prints and shimmying confetti paillettes. And in keeping with her “la petite valise” approach, she offered some appealing items — a boyish, slouchy T-shirt; a sweet eyelet top, and an artsy paint-splattered jean. It was a spirited Rio romp, only lacking caipirinhas and a cabana boy or two.

Carolina Herrera: Ladylike chic is what one expects from a Carolina Herrera collection, so it was hard to decipher what the designer was trying to say with her abundant use of hardware. Working a bold palette of hazard orange and gray, Herrera showed body-conscious dresses, and lean skirts decorated to the nines with shiny gold beads, grommets and lacing. While the motif delivered a chic gutsiness that stopped well short of tough, it at times felt clunky, as when wide, grommeted suede belts weighed down a blouse-and-jacquard pants combo and an otherwise lovely wool sheath. But then, Herrera is obviously feeling confident: Her array of grand gowns indicated that, come November, she expects her clients to have plenty to celebrate.

Yigal Azrouël: Yigal Azrouël experimented with textiles from Uzbekistan, resulting in a collection filled with intricate embroidery and abstract ethnic prints, but far from bohemian. He keeps his hipster girl in check with leather and denim jackets, skinny cropped pants, his signature long T-shirts and cool vests for day — and then offers plenty of sex appeal for evening with draped jersey dresses. WWD, THURSDAY, JUNE 4, 2009 9 WWD.COM

Carolina Diane von Herrera Furstenberg

Calvin Klein

Carolina Herrera

For more resort collection images, see WWD.com. centeno talaya and aquino john by photos 10 WWD, THURSDAY, JUNE 4, 2009 WWD.COM His and Hers There is a bit of masculine and feminine for everyone as designers are turning to tailored looks or feminine details for resort. Yeohlee Teng combines gentle structure with softness, nipping waistlines or backs of her signature coats and jackets. At Tuleh, Bryan Bradley, inspired by Nina Simone, offers flirty silk dresses in dreamy floral prints. Meanwhile at Rag & Bone, David Neville and Marcus Wainwright stay true to their boyish fits and cool wearable pieces, in particular, a denim drawstring jacket and dropped-crotch long john pants.

Rag & Bone

Tuleh

Yeohlee mitra centeno and robert talaya aquino, john photos by WWD, THURSDAY, JUNE 4, 2009 11 WWD.COM Framesi to Launch FASHION SCOOPS MASKED BALL: A month after the Metropolitan Museum of will host Giants coach Tom Coughlin, who will sign copies Art’s Costume Institute gala, the Temple of Dendur played of his recently released book, “A Team to Believe In,” an Hair Spa Concept host to yet another black-tie soiree that celebrated the insider’s account of the team’s ascent to the top of the heap cocktail of art-meets-fashion. On Tuesday night, Vacheron with a Super Bowl win two seasons ago. The autographed MILAN — A detoxifying scalp massage along with highlights? Constantin launched the final set of its Métiers d’Art Les book will be given to any customer who purchases $150 of That’s the type of treatment Italian hair firm Framesi is hop- Masques collection, which features reproductions of antique Joseph Abboud merchandise. ing clients will go for when it rolls out a new hair spa con- masks originating from Indonesia, China, Mexico and Gabon. cept, called Morphosis, in Italian salons for summer. After taking a tour of the new African and Oceanic art FOOT FETISH: Galeries Lafayette is set to become a The 64-year-old firm, based in Milan, developed the exhibit, sponsored by the watchmaker and spotlighting some destination for shoe addicts next month with the opening idea for its Morphosis hair spas after it acquired a soft- of those original masks, guests including Lela Rose, Rachel of a dedicated footwear zone that the venerable Parisian ware technology that examines the hair cuticle and scalp Roy, Muffie Potter Aston, Olivia Chantecaille and Ren Grady, department store claims will be the largest in the world. with a micro camera. The images are then observed on a Pepe Fanjul, Celerie Kemble and Boykin Curry took in a dinner With a commercial space of 34,500 square feet, which monitor and a hairstylist can diagnose specific hair and and tribal dance show by Julliard performers. The draw for almost doubles Lafayette’s current shoe department in the scalp problems and treat them with an accompanying line- the serious watch collectors on hand, however, were the Boulevard Haussmann store, the dedicated floor will carry up of products. watches themselves; this was the first — and only — time 150 brands, half of which will be exclusive. Catering to the Fabio Franchina, president of Framesi, said the the whole three-set collection will be presented together. requirements of the numerous foreign visitors of the store, Morphosis hair spa and treatment line is expected to ac- Others, Rose joked, came for the possibility of a Vacheron notably from China and Russia, footwear sizes will span from count for 20 percent of Framesi’s total revenues within Constantin timepiece giveaway. 34 to 43, with prices running from 100 to 1,300 euros, five years. Last year, Framesi’s wholesale sales hit $81 mil- or $148 to $1,925. A pedicure salon and a cobbler will lion euros, or $119.2 million. Framesi plans to expand the OLIVIER TWIST: Nina Ricci fans will have a chance to snap up complement the shoe department, which will open in the Morphosis spa concept beyond Italy and into the European designs by Belgian-born Olivier Theyskens, who showed his basement of the Haussmann store. market later this year. swan-song Ricci collection in March, as the French house “This is a very technical concept of treating hair problems clears out its closets on Friday in a major one-off sale in that is also attached to a well-being aspect for the client,” Paris. Spanning several past seasons, catwalk pieces will be The Villa Vuitton in Deauville. said Franchina. “Clients are looking for more attention up for grabs along with ready-to-wear outfits, but also shoes from the salon — not just a cut and color,” he added. and accessories for as little as 40 euros, or $55 dollars at “They want a more personalized service, average exchange rates. which reflects the stressful times we live in.” Before developing the Morphosis Hair VENETIAN PLANS: Contemporary art aficionados gearing up Spa concept, Framesi, which historically for the opening of the 53rd Biennale in Venice on June only produced professional hair color, 7 have a treat to look forward to this year: The Pinault branched out 18 months ago with a Foundation will be unveiling perhaps the most anticipated 24-item line that includes shampoos, con- renovation in Venice since the Fenice opera house and the ditioners, treatments and styling Clock Tower in Piazza San Marco. The Punta della Dogana, products divided into five lines, the 17th-century building located at the tip of Dorsoduro including for color-treated, an- that divides the Giudecca Canal from the Grand Canal tidandruff and thinning hair. across from St. Mark’s, will open its doors on June 6. After Also called Morphosis, the line two years of restorations, the Punta della Dogana will host is linked to the spa concept, so an exhibition in tandem with Palazzo Grassi, owned by clients can continue treatments the Pinaults, and curated by Alison Gingeras and Francesco at home. Formulations for the Bonami called “Mapping the Studio: Artists from the TUDOR’S DOWN: Louis Vuitton has given its mock Tudor store products boast natural ingre- François Pinault Collection.” in the heart of Deauville, France, a makeover. Renamed dients sourced from different Meanwhile, Vogue L’Uomo will throw a DJ party on June the Villa Vuitton, the 960-square-foot boutique is typical of Italian regions. 5 at Palazzo Grassi. The soiree will be sponsored by Gucci Normandy architecture and carries accessories and leather Blueberry is the key ingredi- Group and is the second time the magazine will celebrate goods over two floors. It was feted over the weekend with a ent in the thickening line, which its second Arts Issue at the Biennale. The May-June edition private tea attended by Vuitton’s Antoine Arnault and French Morphosis items. the company claims reduces is titled “A Unique Journey into the Artists’ Studios,” and actor Antoine de Caunes. hair loss by 31 percent in a features Richard Prince and Cindy month. The products for color- Sherman on double covers, and inside IN THE BAG: “My husband is a better shopper than I am,” treated hair include a coral extract. features nearly all the artists showing said Rebecca Gayheart at last week’s sixth annual Bag Lunch Pomegranate, Sorrento lemons and blood oranges from at the Biennale and around Venice. to benefit P.S. Arts. “I should have brought him here.” Sicily are the active ingredients for other Morphosis prod- Juicy co-founder Pamela Skaist-Levy opened her Beverly ucts. The Morphosis line is distributed in 1,000 Italian GIANTS FANS: Lord & Taylor is thinking Hills estate for this year’s event, which featured designer hair salons. men. Just in time for Father’s Day, the bag bargains (the hostess also donated one of her vintage “The Morphosis treatment and products will be suggested department store will bring a couple of Hermès Birkin bags to the cause). “Come movie premiere or by the hairdresser in a very specific way: clients who have local football stars to its New York City press junket, I always make it here,” said Kerry Washington, oily, colored hair will receive a different treatment to those flagship to create excitement on its who had just returned from Cannes. Other guests with oily, natural hair, for example,” explained Franchina. men’s floor. First up, New York Giants included Bag Lunch founders Elizabeth Stewart and George Morphosis hair products are slated to be launched in the defensive end Osi Umenyiora will make Kotsiopoulos, Joy Bryant, Kristin Davis, Jessica Capshaw and U.S. in summer under a different moniker — Framesi Hair an appearance tonight on behalf of Sophia Bush, who won a bidding war with Darren Star over a Treatment. Framesi is also looking to open its hair spa con- Nautica. Anyone who purchases $50 Dolce & Gabbana travel bag. Also on the hunt was working cept in the U.S. by the fall. worth of Nautica merchandise will Osi Umenyiora will mom Calista Flockhart. “I’m looking for something big that I Framesi opened a preview Morphosis Hair Spa in con- receive a complimentary signed photo be at Lord & Taylor can open easily,” she said. “If it looks chic, that’s a plus.” junction with a salon in Salerno, near Naples last year. of the player. Then on June 11, L&T tonight. The lunch raised $125,000. Franchina said the concept was well received by clients who have returned for follow-up treatments. Morphosis hair spas are integrated into salons under the premise that stylists are trained by a trichologist to use U.N. Expert Expresses Doubts on Monitoring Framesi’s micro camera and diagnosis techniques during a three-week period. Every treatment begins with a 30-minute By John Zarocostas make sure hourly wage and over- against companies.” scalp massage. time laws are followed. Ruggie, who is also profes- “The ideal way for a salon to present the idea is with GENEVA — Business leaders con- Ruggie, who submitted a report sor of international affairs at a separate space for diagnosing the hair problems,” said sider monitoring of supply chains to the 47-member U.N. Human Harvard University, said some Franchina. “Some salons are highlighting the well-being as- and factories for violations of core Rights Council, said the head of a brand-sensitive companies faced pect of the hair spa with relaxing music that is played when labor standards to be largely inef- large multinational company told with problems “have just sim- the client receives a scalp massage.” fective and unreliable, said the him “up to 70 percent of the audits ply slammed the door and said — Stephanie Epiro United Nations’ top expert on cor- they get have serious flaws.” they’re not going to do business” porate social responsibility. In the report, Ruggie said, “It with suppliers that have breached “We keep hearing now, from is often overlooked that suppli- core standards. BEAUTY BEAT just about everywhere…moni- ers are also companies, subject to As for viable options, Ruggie toring doesn’t work,” said John the same responsibility to respect noted that some leading initia- Ruggie, special representative human rights as any other busi- tives include the Fair Labor Shiseido Europe Taps Viti of the U.N. secretary-general for ness. The challenge for buyers is Association, which has decided PARIS — Jean-Charles Viti has been named vice president of human rights and transnational to ensure they are not complicit to take some of the money ear- Shiseido Europe for the French market, effective July 1. corporations and other businesses. in violations by their suppliers. marked for monitoring and use Viti will replace Gérard Chriqui, who is retiring after “Just about everybody, at least off How far down the supply chain it instead to train factory man- 17 years with the company. Currently, Viti serves as re- the record, will tell you that moni- a buyer’s responsibility extends agers to better oversee the pro- gional director of duty free operations for the Asia-Pacific toring doesn’t work and auditing depends on what a proper duel duction process and help report region for Shiseido, Clé de Peau and Nars. He joined of supplier factories doesn’t work diligence process reveals about problems. In China, the FLA Shiseido in 2000 as a senior area manager for various because people cheat.” prevailing country and sector has even started to train state parts of Europe. Many companies use either conditions, and about poten- labor inspectors. “I believe that his experience in France and also in- internal monitors or hire outside tial business partners and their “The more brand-visible and valuable experience in the travel retail business in specialists to conduct inspections sourcing practices.” the more brand-sensitive the com- Asia will help to position Shiseido as a top player in the of their foreign factories to ensure Ruggie also warned countries pany is, the more resources they French market,” stated Carsten Fischer, Shiseido’s corpo- they are operating under proper and companies against using the put into this problem,” he said. rate executive officer overseeing the international busi- labor conditions. This would in- economic crisis to loosen up on However, Ruggie said a sustain- ness division. clude working conditions at the human rights standards because able solution will have to involve — Liz Webber factories, as well as auditing to it “would worsen the backlash governments. 12 WWD, THURSDAY, JUNE 4, 2009 WWD.COM Denim Report Contemporary Labels Work Through Tough Times By Julee Kaplan For Seven For All Mankind presi- Nobody’s denim dress dent Topher Gaylord, the biggest CONTEMPORARY DENIM MAKERS from its anniversary changes as a company have been are seeing the tough economy as an collection. made behind the scenes. He has opportunity to get creative. worked to push the creative team to- Whether it means adjusting prod- ward constant open communication, uct to add more value, launching which creates an “overall environ- new categories or focusing on grow- ment which is completely focused ing sales abroad, denim fi rms are on design,” he said. thinking of new ways to stay on top In addition, Gaylord said the com- in a down market. pany has developed a large inter- At Los Angeles-based William national business, particularly in Rast, creative directors Marcella and Asia, where it is seeing double- Johan Lindeberg and chief executive digit growth. Also, realizing the offi cer Colin Dyne have developed a hardships that specialty stores value-centered denim program they are experiencing in the reces- hope will allow more people access sion, Gaylord said Seven has to the brand. developed the Premiere 7 “At the core, we are a denim com- collection, which is exclu- pany and while we do have other sively sold at specialty products that fi t into the denim life- retailers. style, we felt that with our denim “While basics are still business, we needed a new strategy,” important to the overall Dyne said. “We needed a strategy to business, it’s the fashion open the brand up to wider distribu- styles which are mov- tion channels both domestically and William Rast has ing in this market right internationally.” refocused its denim strategy. now,” he said. “We are The new strategy divides the fi nding that women don’t William Rast denim collection into always want something three tiers — the opening tier, which at a lower price. She will Rich & Skinny’s boyfriend jeans retails from $165 to $175; the midtier spend the money if she have been selling well, despite consisting of jeans retailing for $185 has a reason to buy.” the economic downturn. to $195, and the top tier, at $195 and Gaylord said the com- up. All jeans are branded the same pany has also been work- with the same packaging and sig- ing on building its own nature flag logo. The differences retail business — 15 free- in prices stems from the amount of standing stores opened work that goes into the jeans. The in 2008, and 12 more are opening tier, for example, consists planned in 2009. of the more basic styles and washes, “The stores are while the top tier includes jeans doing well. E-commerce made with intricate details such as is performing above ex- destruction, hand-painted details pectations,” he said. and heavy washing. The men’s line “Retail has been a now has seven styles of jeans, while great way for us to the women’s line has 17. The idea is service our customers, for the company to open the brand all while building brand up to new distribution channels. awareness.” “Each style has a very clear, dis- Chip & Pepper co-found- tinct personality,” Johan Lindeberg ers Chip and Pepper Foster said. “It’s important for us to be able said they are working through to show the customer that difference, the tough economy by staying especially in the competitive market focused on their key retail ac- we are in.” counts and refusing to ship to Marcella Lindeberg, who is the retailers who do not pay. Also, creative head behind the women’s Pepper said, they have been William Rast collection, said she negotiating with almost every- worked hard to cover all the bases Seven For All Mankind plans to open 12 one they can. — ranging from jeans for a woman more stores this year. Here, its latest “Everything is negotiable looking for destructed boyfriend in Manhattan’s Flatiron District. these days,” he said. “The wash jeans to sexier cropped skinny jeans houses who used to do $20 wash- to a high-waisted fl are style. She has es are doing them for $10.” also paid more attention to detail. Pepper said in many ways, For example, “Justin’s the state of the economy has [Timberlake, one of the line’s co- forced them to look at the founders] mom was complaining overall business and think that one thing she hated about jeans back to how they started the was that her belt always slips off brand in 2003. from the loops,” Marcella said. “We “We’ve never been about really worked to make every detail being trendy,” Chip said. perfect.” “We’ve scaled back the line to Denim veteran Michael Glasser, make it very focused and we’ve who cofounded Seven For All edited it down to about only 25 Mankind and Citizens of Humanity sku’s. Each pair of our jeans has before joining forces with contempo- tremendous value, and while we are rary designer Joie Rucker to launch working on ways to lower our prices, Rich & Skinny in 2006, said he knew we refuse to step outside of what we he had to react quickly as soon as have built. We will always manufac- the economy began getting sour. ture here in the U.S. and will always “What we realized is that we be about quality.” had to do something to bring down At the Australian denim brand our prices, all while making our Nobody, creative director Wesley product even more meaningful,” Hartwell said while it chose not to Glasser said. make any “knee-jerk reactions” to About a year ago, Rich & Skinny the economy by way of changing di- launched a collection of basics that rections, the company has focused were high quality, but at a lower on getting more creative to celebrate price. Glasser said the new fashion basics program has made the overall brand even its 10th year in business. stronger, while bringing the average price point down to about $145 at retail, when Hartwell said the new Australian Heritage collection launching in the fall will jeans used to sell well at more than $200 a pair. Glasser also said the brand’s boy- showcase the best of what Nobody does in the way of fi ts and washes on denim pieces friend jeans style is selling well despite the economy. It’s this style that has resulted including dresses, jeans, jumpers, shirts and shorts. in the company’s overall growth during the downturn, he said. “The entire collection is hand-customized in a very attention-to-detail, slow-pro- “Over the years, I’ve learned that no matter what the economy is like, we have to cessing kind of way,” he said. “We wanted to convey our unique attitude and point of be very price competitive, quick to react to our customers’ needs and be able to de- view in the world — a freedom, optimism, creativity and easygoing outlook — denim liver quickly,” he said. “That’s always the secret to success in this business.” heritage and lifestyle.” WWD, thursday, june 4, 2009 13 WWD.COM The Beat L’Koral Boosting Value Cynthia Steffe’s New Identity With Patterson J. Kincaid By Julee Kaplan Besides the creative changes, the company has worked to make production more efficient. For start- Patterson It’s been two-and-a-half years since ers, all samples are made in a small sample room in- J. Kincaid Cynthia Steffe left the namesake brand she founded side the brand’s offices. offers tops in 1989, and the label’s parent company, Bernard “A great deal of the production was handled over- at low Chaus Inc., appears to be finally hitting its groove seas but in order for us to create a foundation, we real- contemporary with the collection. ly needed some of it to be done here,” Kearney said. prices. Since Steffe and her husband and brand presi- “It’s been a great investment to have our samples dent, Richard Roberts, departed in December 2006, made right here and, because of this, we are able to get the brand has been through an identity crisis. First product shipped to the stores very quickly,” said Annette the company brought in Naum designer Waleed Mathiew, Steffe’s president of sales and marketing. Khairzada as a design consultant for two seasons be- The brand is also making some moves on a glob- fore tapping Shaun Kearney, who brought experi- al scale. For the first time, Steffe will be sold ence from within the company as vice president of overseas — in Harrods and Harvey Nichols Kenneth Cole New York’s (licensed) cream label this fall. According to Mathiew, the company and creative director for all divisions at Chaus is looking at expanding throughout Europe, since 2003. Now that Kearney has officially been Central America and Asia, and is in talks to on board as executive vice president of design launch licensed swimwear and footwear, and creative director at Cynthia Steffe for a full with other accessories to follow. o

year, the company is eager to disclose some of In addition, Kearney said they are n e

the changes being made — including global in early conversations to launch an nt ce

aya Looks from l

Cynthia Steffe’s ta by os

holiday collection. t o ph L’Koral Inc. chief executive officer Jane Siskin thinks a top should be an accessory. That’s why she’s launching a new line of contemporary tops, called Patterson J. Kincaid, for fall selling. The col- lection — ranging from printed chiffon blouses to cotton tank tops — wholesales from $21 to $76. The line is slated to be at the lower end of the price scale on the contem- porary floor. It is being tested in select department and specialty stores and will fully launch for fall in stores such as Saks Fifth Avenue, Neiman Marcus, Nordstrom, Bloomingdale’s and on Shopbop.com. “People are buying accessories to spruce up the clothes they already have in their closets,” Siskin said. “So why can’t a top be seen as an accessory? If it offers great value, but at a lower price, in my mind, it’s an accessory.” Siskin said the collection will have the same distri- bution strategy as other contemporary brands under the L’Koral umbrella, including Elizabeth & James, which is designed under a partnership with Mary-Kate and Ashley Olsen, and LaRok. “Before the bottom fell out, we saw a void for this kind of collection in the contemporary category,” Siskin said. “This should be a quick, easy purchase. Because o the prices are so low, the customer won’t have to give it n e much thought.” nt ce

The collection includes a range of tops in a variety of

aya shapes: a cotton jersey grandpa cardigan, printed silk l chiffon blouse, woven plaid tank top, chiffon tank with ta by

o beading embellishments, silk tank top with crushed velvet t o accents along each side and oversize cotton T-shirts. To

y ph add a little something extra, there are also a few dresses, e n r including a cotton jersey T-shirt dress, which comes with a e k a skinny leather belt and a printed chiffon tank dress. In addition, the Patterson J. Kincaid blue label is a full col- expansion plans and new product categories. e-commerce site as well as free- lection of men’s wear-inspired woven shirts, all of which On the creative end, the brand has done a standing stores. wholesale at $44. The collection is based in LaRok’s complete 180. While the Cynthia Steffe Today, the line is sold in better Manhattan showroom at 250 West 39th Street. brand had become known for its ca- department and specialty stores in- “We’ve learned so much about this customer through sual contemporary sportswear, the cluding Lord & Taylor, Bloomingdale’s and our other lines, and we see that it’s not really about collection today is clearly more Neiman Marcus. In order to satisfy retail- price with them, but more about value,” Siskin said. sophisticated. The holiday ers looking for items at a lower price “They don’t want cheap; they want value. This line gives line fully shows Kearney’s vi- point in the contemporary category, them a great price and a great value, so it can be a quick, sion of mixing soft feminine Mathiew said Steffe has adjusted its easy purchase.” details with harder, edgier Shaun prices, lowering them by about 10 Siskin said she expects to reach $12 million in first-year embellishments — there’s Kearney percent from last year. Now, the line wholesale volume with the new brand. a silk chiffon blouse with wholesales from $34 for a tank top — J.K. gold studs; a silk tank top to $269 for a leather jacket. Back in with ruffles, which are 2006, the line was wholesaling be- accented with matte gold tween $69 to $289. chain details; soft leather Launched in 1989, Cynthia Steffe jackets; a layered tulle skirt became a division of LF Brands — then with an exposed zipper; me- Leslie Fay Cos. — in 2000. Extricating it- rino wool sweater dresses; silk self from LF Brands, which had gone out jersey tops, and printed silk one- of business just weeks before, Cynthia Steffe shoulder dresses. had wholesale volume approaching $20 mil- “The contemporary market as lion in 2004. Roberts said at the time they spoke a whole is much more sophisticated and to companies throughout the world before selecting edgy than it once was,” said Kearney during a walk- Chaus. Chaus bought the brand in January 2004 from under through of the collection at the 550 Seventh Avenue LF Brands for an estimated $5 million. In 2006, Chaus The percen30%tage of the nation’s showroom. “For this collection we worked to play planned to grow the Cynthia Steffe trademarks from with the hard and soft elements.” what industry sources estimated was a $24 million teens who have held jobs in recent In addition, Kearney has changed the look of the wholesale business, without changing the channel of months versus 45 percent in 2000 label. It used to be orange with the name Cynthia distribution or price. Now in a recession, company and nearly 50 percent in 1989. Cynthia Steffe printed on it in white. Today, the label executives said they plan to eventually reach that $24 is black with the Cynthia Steffe logo printed in metal- million goal, but they have taken a step back and look

lic gold, which Kearney said matches the sophistica- to increase the label to somewhere between $12 mil- SOURCE: Center for Labor Market Studies, Northeastern University tion of the clothes. lion and $15 million over the next year, Mathiew said. 14 WWD, thursday, june 4, 2009 WWD.COM Financial For full daily stock changes and more financial news, see WWD.com / business-news. Bernanke: Consumers Key to Recovery 10 Best Performers By Evan Clark year for the company as it streamlines its sourcing platform, increases its fash- FEDERAL RESERVE CHAIRMAN ion quotient, upgrades its financial man- DAILY COMPANIES P/E Volume Amt Ben Bernanke told House lawmakers agement and disposes of J. Jill. Wednesday that the pace of the econom- Analysts expect the company to post High Low Last %Change ic contraction might be slowing, but his first-quarter losses of 50 cents a share optimism didn’t lift Wall Street’s spirits. on Tuesday. Much, he noted, depends on consum- “While most of the heavy lifting is be- 2.42 1.99 Casual Male (CMRG) - 431516 2.41 +19.31 ers, who are vulnerable to the labor hind it, J. Jill still looms as a distraction, market, declines in household wealth and product enhancements are masked 5.07 4.35 Talbots (TLB) - 2475038 4.85 +15.75 and limited access to credit. by the macroenvironment,” Slater said. “We continue to expect overall eco- A sale of J. Jill, which the company is 3.06 2.67 Retail Ventures (RVI) 2.7 356843 3.02 +7.47 nomic activity to bottom out, and then to actively working on, would eliminate $314 turn up later this year,” said Bernanke, million in contractual obligations and a basing the forecast in part on a stabiliza- drag on earnings for Talbots, the analyst 4.25 3.90 Bon-Ton (BONT) - 149333 4.25 +6.25 tion in consumer spending. said. Talbots purchased J. Jill in early Investors will get a fresh look at con- 2006 for about $517 million in cash and 4.14 3.79 Charming Shoppes (CHRS) - 823345 4.12 +5.91 sumer activity today, when many retail- put it on the sales block in November. ers report May comparable-store sales, Deals have been few and far between, 2.90 2.85 Hampshire (HAMP) - 4710 2.90 +5.45 and another on Friday, when the Labor but a report this week showed U.S. pri- Department weighs in on last month’s vate equity firms have plenty of money 4.92 4.50 Coldwater Creek (CWTR) - 775952 4.91 +4.69 employment numbers. on the sidelines. And they are continu- The S&P Retail Index slumped ing to drum up funds. 26.56 24.86 Taubman (TCO) - 2184855 26.41 +4.43 1.3 percent, or 4.57 points, to 339.10 Private equity firms raised $45.74 bil- Wednesday, as the Dow Jones Industrial lion in capital through April this year, Average retreated 0.8 percent, or 65.63 but spent only $24.03 billion, according 23.26 21.95 G&K (GKSR) - 156252 23.26 +3.98 points, to 8,675.24. The retail index’s to a report from The Alliance of Merger pullback was the first after three con- & Acquisition Advisors and PitchBook 0.70 0.69 Frederick’s of Hollywood (FOH) - 200 0.70 +2.94 secutive upward sessions that had lifted Data Inc. it 8.8 percent. Private equity has a total kitty of Retail decliners included Macy’s Inc., $400 billion — or enough to buy all the down 4 percent to $13.32; Sears Holdings outstanding shares and debts of Wal- Corp., 2.6 percent to $65.58; J.C. Penney Mart, Target, Kohl’s, Macy’s, Sears and 10 Worst Performers Co. Inc., 2.5 percent to $30.09; Target J.C. Penney with more than $70 billion Corp., 0.8 percent to $40.97, and Kohl’s left over. DAILY COMPANIES P/E Volume Amt Corp., 0.8 percent to $46.65. Wal-Mart Just how attractive retail and fashion Stores Inc., a Dow component that last will be when this money comes into play High Low Last %Change month said it would discontinue reporting remains to be seen, especially since monthly sales, rose 1.9 percent to $50.88. the market is saturated with stores and Shares of The Talbots Inc. also swam consumer spending remains a question 11.33 10.07 Dillard’s (DDS) - 1241962 10.36 -8.16 against the tide, rising 15.8 percent to mark. Investors, already edgy about the $4.85 after Lazard Capital Markets ana- Labor Department’s monthly jobs report lyst Todd Slater upgraded the stock to due on Friday, were clearly disturbed by 7.15 6.21 Syms (SYMS) - 27243 6.70 -6.94 “buy” from “hold” and said the sale of the ADP National Employment Report the J. Jill unit “could occur sooner rath- Wednesday estimating that a higher- 4.30 4.00 Saks (SKS) - 4577881 4.05 -6.47 er than later.” than-expected 532,000 private sector Slater said this would be a transition jobs were lost during May. 16.82 15.70 Gildan Activewear (GIL) 17.2 1389750 16.26 -5.52

0.57 0.52 Charles & Colvard (CTHR) - 13467 0.52 -5.45 Boscov’s Clears Hurdle in Refinancing Bid 8.78 8.27 Perry Ellis (PERY) - 160432 8.34 -5.01 By Kate Fleisher sources available to Boscov’s, Curcio said, citing Pennsylvania’s guarantee of 13.91 13.09 Lululemon (LULU) 25.6 744231 13.4 -4.69 BOSCOV’S INC.’S HOPES OF SURVIVAL $35 million in federal loans. The family, in family hands advanced Tuesday night led by chairman Al Boscov and presi- 4.16 3.92 Bulgari * (BUL:MI) 40.5 3290716 3.98 -4.39 when Atlantic County, N.J., freeholders dent Edward Lakin, has contributed $53 voted to guarantee a $3 million federal million in equity. 10.35 9.94 LaCrosse Footwear (BOOT) 14.4 4300 9.94 -4.20 loan to help complete the $300 million At the meeting, Boscov emphasized refinancing of the 39-unit department that the county’s help was essential to 4.20 3.93 Zale (ZLC) - 585786 4.08 -4.00 store chain. help the chain survive, Curcio said. “In The Department of Housing and the end, the board considered the num- Urban Development, which would pro- ber of jobs involved — about 200 at the * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on cess the loan, requires two public hear- two anchor stores in the county — and the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss ings and a 30-day comment period to the tax revenues generated. The major- francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. allow for public reaction, which is ex- ity felt it was the right thing to do.” pected to stretch out the process to about Boscov couldn’t be reached for comment. six weeks. Luzerne County, Pa., has promised Final approval would authorize to backstop the Atlantic County guaran- Wilsons Amplifies G-III Loss in First Qtr. the county to amend its Community tee should it fail to get government ap- Development Block Grant to support proval. Boscov’s stores include units in By Alexandra Steigrad However, the company said losses asso- the guarantee. No county money would both Egg Harbor, N.J., and Camp Hill, ciated with the acquisition of its Wilsons be directly involved. Pa. Malls in those locales are operated G-III APPAREL GROUP LTD. SAID business weighed down results. James Curcio, chairman of the nine- by Cedar Shopping Centers, which has Wednesday its Wilsons outlet retail busi- G-III chairman and chief execu- member freeholder board and the sole supported Boscov’s with an additional ness hampered first-quarter results, but tive officer Morris Goldfarb said on the negative vote, said, “There were good $500,000 loan guarantee. strength in the growing women’s sports- company call to analysts, “We’ve made arguments on both sides because we Based in Reading, Pa., Boscov’s filed wear and dress businesses allowed it to improvements since acquiring Wilsons had never done anything like this be- for Chapter 11 bankruptcy protection post a smaller-than-expected loss. last July. We believe this will become fore for a private business.” in August. A family group led by Boscov For the three months ended April 30, an important and productive piece of Freeholders expressed concerns and Lakin agreed to buy its assets in the New York-based vendor reported a our business.” about setting a “dangerous precedent” November, eclipsing the stalking horse net loss of $6.8 million, or 41 cents a di- Goldfarb said Wilsons is in “liquida- should other private businesses be in bid made by Versa Capital Management luted share, compared with a net loss of tion mode” with its accessories inven- the same situation but without the re- Inc. in September. $6.9 million, or 42 cents, in the year-ago tory, which should pay dividends dur- quarter. Revenue grew 53.8 percent to ing the second half of 2009. Although $115.9 million from $75.4 million. On av- Goldfarb said he had “modest” ex- erage, analysts polled by Yahoo Finance pectations of Wilsons breaking even IN BRIEF were looking for a net loss of 51 cents on for the year, he was optimistic about COACH SUES BROWN: Coach Inc. brought a patent infringement suit against Brown sales of $103.8 million. G-III’s future growth. Shoe Co. Inc. last week, accusing the footwear firm of violating one of Coach’s G-III, which holds licenses for “Challenging times and significant op- handbag designs. In a complaint filed in U.S. District Court in Manhattan on May brands such as Calvin Klein and portunities go hand-in-hand,” he said. 29, Coach accuses the retailer of selling what is “virtually an exact copy” of its Kenneth Cole, said its gross margin in- For the second quarter, G-III fore- Ergo Pleat handbag in the Naturalizer chain of stores. Coach began selling the creased to 26.9 percent of sales, versus cast a net loss of $4.8 million to $5.4 mil- Ergo Pleat bag in 2007 and patented it in December 2008. Brown Shoe did not 23.3 percent in 2008. lion, or between 28 and 32 cents a share. return a call seeking comment. Coach is seeking an injunction, profits it would Like many of its rivals, G-III has been Revenue is expected to be about $135 have made and any profits Brown Shoe made off the patent as well as other un- cutting costs and controlling inventory million. Analysts anticipated a net loss specified damages. to cope with the economic downturn. of 30 cents on sales of $130.7 million. WWD, THURSDAY, JUNE 4, 2009 15 WWD.COM AJC Honors Leonard Marcus Outside the grand ballrOOm Of the hiltOn hOtel mOnday evening, leonard marcus, president and chief operating officer of macy’s merchandising group, reflected on the large crowd gathering for the dinner benefiting the american Jewish Committee. “it’s a real tribute that in this environment people are stepping up,” said marcus. the event, which raised $2.1 million and drew about 950 guests, was also a tribute to marcus. as the evening’s honoree, he was cited for his long retail career and his

charitable deeds. “this is an individual truly deserving of our deepest appreciation,” CALABRESE said bloomingdale’s chairman and chief executive michael gould, an event chair. marcus noted he started his career in the training program of abraham & straus, JOHN BY right after graduating from brooklyn College in 1974. he rose through the ranks to be- come president of the store, later became president of stern’s, and eventually joined macy’s merchandising. the stern’s and a&s nameplates have been taken down and PHOTOS The Marcus family: Randi, From left: Jeff Gennette, Kenneth Cole, Michael Dana, Leonard and Jason. replaced by macy’s. Gould, Jill Granoff and Mark Weber. marcus has been one of the main engines behind the growth of macy’s merchandising’s stable of private brands, which includes inC, Charter Club, alfani, upon receiving aJC’s national human relations award, marcus cited the organi- tools of the trade, american rag and tasso elba. according to marcus, macy’s zation’s mission. “aJC protects human rights and assists in disasters for all people of merchandising currently represents almost 19 percent of macy’s total business. “We the world — not just Jews.” it also helps fight terrorism, supports israel, combats anti- plan to get to 20 percent through continued organic growth,” he told WWd. “right semitism and other forms of bigotry, and works to defend religious freedom around now, we are not launching any new brands. there will be no new ones this year. We the world. have a good balance between private brands and market brands at this point.” — David Moin

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39th St & 7th Ave. Magnificent showroom available. Entire Penthouse, 12,000 PATTERNS, SAMPLES, SALES EXECUTIVE feet. Huge roof top terraces. Rare opportu- CFO Moderate blouse/sportswear Co. seeks nity for upscale garment company to PRODUCTIONS Large, privately held apparel company has an immediate aggressive & committed sales executive take possession of this unique showroom Full service shop to the trade. for branded and private label business. Cash For Retail Stock & Closeouts. in heart of the garment district. Avail Fine fast work. 212-869-2699. opportunity for a Chief Financial Officer reporting directly to Must have established contacts, and No Lot Too Big or Too Small. 8/15/09. Call 212-221-3200 the President. The CFO is responsible for the day-to-day strong follow up skills. Full health bene- Call CLOTHES-OUT: fits, salary commensurate w/ experience (937) 898-2975 Printing Service financial operations of the company. The candidate must High tech reactive digital prints on Email resume to: [email protected] knits and woven in any size; fast service. have strong financial and managerial skills, have extensive or fax 212-575-0069 Contact: [email protected] experience in financial planning and budgeting, and knowl- edge of working with a factor. The Company offers a Salespeople Needed B.H Warehouse Space competitive compensation package. Please submit resumes Salespeople needed in New York To Spaces to: [email protected], on behalf of the Company. sell moderate, missy & plus size 2 pc Available Immediately sets, blouses & dresses. Must have ex- Opportunity to share an amazing ware- perience, relationships with specialty house. Short term or long term flexi- shops & chain stores - strong account COMMERCIAL bility. Immaculate, clean, dry, well lit HIGH-END REPUTABLE list. Great oppty! Fax resume: 212-226- building, concrete slab, with 26’ceiling. 5324 or e-mail to [email protected] REAL ESTATE Heated, alarmed, video surveillance BEAUTY BRAND and vertical racking .Will lease up to Seeks entrepreneurial driven SHIPPING MANAGER 40,000sq.ft (125,000 sf total) with Partner/Investor to help the company Fast growing Ladies Apparel Co. seeks widen our established product line SALESPERSON exclusive use of up to 7 private bay detail oriented, self motivated & hard- NYC based for closeout on mens, boys, doors. Centrally located Secaucus, NJ and expand nationally. working person for our NYC office. Contact: [email protected] womens & girls highly rated company 3 minutes from NJTP 15X and Apparel exp a must. Responsible for looking for salesperson. Candidate Secaucus Train station (one stop to shipping & inventory control utilizing must have knowledge & experience in Penn Station) Convenient to Lincoln many public warehouses. Organizing this field. Kindly send resume by fax and Holland Tunnels. Special logistics workflow, identifying priorities & ensur- SALES ASSISTANT # 212-819-9268 or e-mail to: services can also be provided. ing accuracy of inventory. Some order [email protected] (No brokers) Please call 201-920-9241. entry, EDI, Create shipments, inventory Alexis Bittar Inc is looking for a sales Showrooms & Lofts receipts, creating pick tickets, invoicing assistant to offer operational support BWAY 7TH AVE SIDE STREETS using AIMS. Must be computer savvy, to Wholesale Department Store Senior Great ’New’ Office Space Avail Excel req’d. 5 yrs of supervisory & man- Sales Executive. Candidate must have ADAMS & CO. 212-679-5500 agement. Email your resume & salary 3 years experience in wholesale/retail requirements to: [email protected] jewelry industry. Please send cover letter with salary requirements, and resume to: [email protected] Designer Missy/Junior outerwear co seeks a cre- ative, passionate & team player, 2-4yrs experience. Responsibilities are mar- 33rd-57th St West-All Sizes PATTERNS, SAMPLES, ket research, design, flat sketch w Illustrator&Photoshop, incl tech pack, Accessories Sales Executive Menswear Showrooms fitting, following up sampling. D. Levy Adams & Co. #212-679-5500 PRODUCTIONS Well Connected to Mass and Mid Tier All lines, Any styles. Fine Fast Service. [email protected] Management: Please Call: 267-671-2130 Call Sherry 212-719-0622.

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SPRING 2010 COLLECTION SEASON NEW YORK LONDON MILAN PARIS

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