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Texture Messaging NEW YORK — Upholstery Fabrics Have Their Day in the Sun As Stylish, Embellished Looks Turn up in Rich, Textured Brocades and Lush Velvets

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Texture Messaging NEW YORK — Upholstery Fabrics Have Their Day in the Sun As Stylish, Embellished Looks Turn up in Rich, Textured Brocades and Lush Velvets NEIMAN’S FIELD NARROWS/3 BOOMERS’ FASHION DIVIDEND/10 WWDWomen’s Wear DailyWEDNESDAY • The Retailers’ Daily Newspaper • March 23, 2005 • $2.00 Sportswear Texture Messaging NEW YORK — Upholstery fabrics have their day in the sun as stylish, embellished looks turn up in rich, textured brocades and lush velvets. Here, Nanette Lepore’s haute bohemian acrylic, cotton, polyamide and polyester coat, silk and metallic blouse and rayon and silk skirt. Patricia Makena necklace. For more, see pages 6 and 7. From Boho to Beading: India Draws Designers With Exotic Inspirations By Rusty Williamson E JESUS ritish fashion designer Matthew ANK D Williamson has traveled to India B36 times in the last 10 years and is eager to return. His fascination with the country is shared by Oscar de la Renta, Monique Y STAYC ST. ONGE; STYLED BY FR ONGE; STYLED BY ST. Y STAYC Lhuillier, Etro, Roberto Cavalli, Gucci and Tracy Reese, among others, who have embraced colorful and embellished Indian style. This is expressed in the gypsy and bohemian looks; beaded, ABIANA/WOMEN; HAIR AND MAKEUP B mirrored and metallic trims; embroidery; spicy colors, and tie-dye and ikat prints found in numerous collections. See Beyond, Page8 T ABC CARPET AND HOME; MODEL: F PHOTOGRAPHED BY CENTENO A TALAYA 2 WWD, WEDNESDAY, MARCH 23, 2005 WWD.COM Li & Fung Sets Sights on $10B by ’07 WWDWEDNESDAY By Scott Malone of them in the market,” he said. Sportswear He also noted that Li & Fung NEW YORK — Looking to extend recently took over the apparel their lead as the world’s largest sourcing operations of Mervyn’s GENERAL MAINSTREAM: Designers are taking inspiration from India, reflected in apparel sourcing company, Li & and Marc Ecko Enterprises. beaded and metallic trim, embroidery, spicy colors and tie-dye prints. Fung Ltd. executives have set an Li & Fung officials acknowl- 1 ambitious goal — to become a edged they hadn’t hit all the tar- Executives at sourcing powerhouse Li & Fung Ltd. have set an ambitious goal $10 billion firm by 2007. gets set in their last three-year 2 for the next three years: to become a $10 billion firm by the end of 2007. That would be a significant plan, which had called for 15 Nearly a week after the Neiman Marcus Group put itself on the selling jump from the $6.06 billion in percent compound annual sales 3 block, the field of potential buyers appears to be tightening. revenue for the fiscal year ended growth from 2002 through 2004. Dec. 31, a 10.6 percent gain from The actual growth rate for that SUZY: The Island of Marlon Brando…The Houston Grand Opera turns $5.47 billion a year earlier. Net period came to 13 percent. 4 50…Rachel Hunter: $70 million sets Rod free…Jerry Hall’s lullaby. income in the year was $196.5 However, Fung noted that mar- Fashion designers are drawn to the softness of velvet for fall, cutting it into million, up 25.1 percent from gin growth outpaced sales 6 everything from flowing dresses and skirts to romantic jackets. $157 million in 2003. (Figures are growth over that time. converted from Hong Kong dol- “While our top-line growth Classified Advertisements ..................................................................15-19 lars at the average exchange rate was not as spectacular as we had To e-mail reporters and editors at WWD, the address is for the periods.) hoped, it’s still in the double- [email protected], using the individual’s name. Li & Fung officials said they digit region, and in the face of WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 aren’t counting solely on acquir- some severe price deflation, FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. ing companies as the way to what we have done is manage VOLUME 189, NO. 61. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one drive growth, and as a sign of our expenses very well,” he said. additional issue in June; two additional issues in April, May, August, October, November and December, and three additional issues in February, March and September, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL that plan to pay a $205.8 million Fung added that the company OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., dividend to shareholders. Our feeling at intended to continue to boost Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill “For a long time now, Li & margins by adding services, Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, “ Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- Fung has been a cash-rich com- this moment is such as design and logistics, and President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at pany, and to some extent we’ve by increasing its sale of licensed additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. been criticized for not having an that we probably branded products. In addition to POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR efficient balance sheet,” group Levi Strauss Signature tops and SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR are sitting on too DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is managing director William Fung Levi’s Red Tab men’s tops, Li & required for change of address. Please give both new and old address as printed on most recent label. First copy of new said during a Tuesday news con- Fung sells licensed products subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production ference in Hong Kong that was much cash. under the Disney and Cannon correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild broadcast on the Internet. “We — William Fung,” Li & Fung brands. The firm projected its magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully were thinking maybe we were branded products revenues screened companies that offer products and services that we believe would interest our readers. If you do not want to receive waiting for a big acquisition. would reach $1 billion by 2007. these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED Our feeling at this moment is Zeeking. Bruce Rockowitz, Li & The company noted that dur- MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND that we probably are sitting on Fung’s president and chief ex- ing the last three years it re- TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED too much cash.” ecutive officer, said the firm has duced its dependence on the TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE After the payout, the firm signed a memorandum of un- U.S., which represented 68 per- ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. will retain a $100 million war derstanding to acquire another cent of sales in 2004, down from chest, which Fung described as U.S. licensed apparel maker, 73 percent in 2002, and on soft “adequate to fund a very aggres- which he declined to identify goods, to 67 percent from 72 per- sive acquisition strategy.” since the deal has not been cent. Over that time, it grew its In recent months, Li & Fung completed. sales to Mexico and Canada, In Brief has acquired U.S. knitwear “We’ve set up a fantastic ma- and also increased its offering maker Ralsey, as well as chine to acquire medium and of hard goods, such as toys and ● GOODY’S DECLINE: Shares of Goody’s Family Clothing Inc. European suppliers BMB and small companies, and there’s a lot home decor items. fell 17.3 percent in Nasdaq trading Tuesday after the company said first-quarter earnings would be “significantly lower” than the 24 cents a share in last year’s comparable period. Robert Goodfriend, chairman and chief executive officer, said a variety of ills, including cold, wet weather and soaring gas prices, com- U.S.-Made Apparel Prices Dip in Feb. bined with an early Easter forced the firm “to be more promo- tional in an effort to stimulate sluggish sales.” The announce- By Kristi Ellis economy. The Federal Reserve Board, monitoring ment, made late Monday, touched off selling Tuesday that re- signs of inflation, raised the federal funds rate — duced the price of a share of Goody’s by $1.89 to $9.05. Goody’s WASHINGTON — Wholesale prices for U.S.-pro- the interest that banks charge each other — by a first quarter concludes at the end of April.
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