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Photo by Thomas Iannaccone;S tyled by Danilo Matz page 11. new bodyline, fronts Ahava’s Kristin Davis BEAUTY: Fistful ofDreams million atretail globally in itsfirst yearon counter. For more,see page9. Renzo Rosso’s own hand. Sources estimate it could do at least $50 everywhere else in May, features a bottle modeled after founder rolled out by L’Oréal in Germany in late March, France in mid-April and its first solo men’s offering, Only the Brave. The scent, which will be Diesel hopes to pack a punch in the fragrance market this spring with Women’s Newspaper 23,2009•$3.00 Daily •January Wear •TheRetailers’ Daily to be adjusted on a regular basis to keep to beadjustedonaregularbasiskeep placed on assets from acquisitions and needs goodwill. Simplyput,goodwillisthevaluation weak saleswoulddictateastheywritedown of allstripescouldpostfarsteeperlossesthan losses of$1.01ayearago. $10.11 ashareforthequarter, downfrom weakness would result in losses of $10.07 to Nine West and Maxwell Shoe Co., and retail charge, relatedmostlytoitsacquisitionsof consumers. toll on fourth-quarter profits than stingy guide, accountantsmightexactanevenbigger writedown for goodwill and trademarks is any If JonesApparelGroup’s$810millionnoncash By EvanClark Could SignalaTrend Jones’ $810MCharge Balancing theBooks: W And Jones isn’t alone. Fashion companies Jones saidThursdaythattheaftertax w See

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2 WWD, FRIDAY, JANUARY 23, 2009 WWD.COM Barneys Said On Block, Near CEO Pick By David Moin bidding battle and thinking the brand was export- able internationally. Istithmar bought Barneys at Barneys New York, through all the the peak of the market. At the time, Barneys gen- WwDfridayBeauty turmoil plaguing the retail industry this year erated about $50 million in EBITDA. FASHION and last, has kept its profile low under the cloak But the economy is facing serious pres- of private ownership — until now. sure as real estate values there plummet, un- 4 In a season where anything goes, the pre-fall The luxury chain is said to be up for sale again employment rises and tourism dries up. There lineups at Bottega Veneta, Akris and Azzaro had and close to naming a new chief executive officer. was speculation this week that on top of its re- their share of classic pieces. Sources said an individual has been selected tail difficulties, Istithmar’s real estate holdings GENERAL as ceo and might need to fulfill obligations on an- are losing value. Bloomberg News first report- other job before officially joining Barneys. The ed Barneys was up for sale. Instead of selling 1 Accounting measures like Jones Apparel Group’s identity of the individual could not be learned. Barneys outright, Istithmar could seek an equity $810 million write-down for goodwill and trade- David Jackson, ceo of Barneys owner partner in the business. marks could impact fourth-quarter profits. Istithmar, would not comment on whether the Selling Barneys for anywhere near its purchase John Varvatos is poised to launch his third men’s chain is for sale or that it’s found a new ceo. price of two years ago would seem almost impossi- 8 scent, Artisan, in March, in an effort to bolster a Meeting both objectives would be a feat for ble at this juncture. Jones acquired Barneys from growing Varvatos fragrance business. Barneys for several reasons. The deteriorat- Whippoorwill Associates Inc. and Bay Harbor ing economy has decimated the luxury sector Management in 2004 for $397.5 million. 9 Diesel’s new men’s scent, Only the Brave, made — both Saks Inc. and Neiman Marcus Inc. have Moody’s also cited concerns that Barneys by L’Oréal, will roll out in some 30,000 doors been saddled with excess inventories and dou- continued to operate in the tough retail environ- globally, starting in Germany at the end of March. ble-digit sales declines — and has dried up the ment for months without a ceo. Howard Socol Prada’s newest scent, Infusion de Fleur d’, market for mergers and acquisitions. served as Barneys president, ceo and chairman 9 is the first in a range of limited edition scents In addition, Barneys has an unproven expan- for over seven years but left the store at the end dubbed the Ephemeral Infusion Collection. sion strategy, with its flagship openings over the of last June amid speculation he disagreed with last three years in the U.S. not yet gaining momen- Istithmar on exactly how the chain should expand. Mineral makeup and natural products continued tum. Handsomely designed flagships were opened Barneys had sales of over $780 million for the year 10 to be a strong theme among many manufacturers in March 2006 in Boston, followed by Dallas, Las ended Aug. 2. “It’s strange there has been no ceo at showing at ECRM’s Efficient Program. Vegas and . Barneys in that stretch Barneys since July,” said another financial source. 12 EYE: The Oscar nominees announced Thursday also relocated its stores in Chicago and Seattle. Since Socol’s departure, the luxury chain has been include such red-carpet stars as Anne Hathaway, “Barneys New York’s taste level has not been run by a tier of veteran Barneys executive vice Angelina Jolie, Kate Winslet and Penélope Cruz. widely accepted elsewhere, as they built stores presidents. To its credit, Barneys has maintained across the country,” said Joyce Greenberg, an in- its hip image and most of its senior staff. 14 Eddie Bauer Holdings Inc. on Thursday reported vestment banker, formerly with Financo Inc. “The U.S. luxury retail executives are not likely lower sales and estimated earnings results for the market for Barneys merchandise does not appear candidates for Barneys since most would have fourth quarter. to be as broad as originally anticipated.” non-compete clauses in their contracts, eliminat- s 14 Tommy Hilfiger USA Inc. is focusing more on its Last November, Moody’s Investors Service ing such individuals as Saks Fifth Avenue’s Ron e-commerce presence and continuing to bring its downgraded Barneys’ debt, citing weaker-than- Frasch, Jim Gold of Bergdorf Goodman or Karen Kate Winslet accessories business back in-house. expected operating performance and debt-protec- Katz of the Neiman Marcus stores. On the in- tion measures since the company was purchased ternational front, names that have surfaced are Classified Advertisements...... 15 in September 2007 by Istithmar, an investment Vittoria Radice of La Rinascente; Mark Lee, for- firm controlled by the government of Dubai. merly of Gucci; Caryn Lerner of Holt Renfrew, To e-mail reporters and editors at WWD, the address is Istithmar purchased Barneys from the Jones and former Topshop chief Jane Shepherdson. [email protected], using the individual’s name. Apparel Group Inc. for $942.3 million, beating Barneys also could choose an individual from WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. out Link Theory Holdings Co. Ltd. of Tokyo in a outside the retail sector. VOLUME 197, NO. 15. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in April, June and August, three additional issues in March and September, and four additional issues in February) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services 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 paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Lanvin Picks Andretta as EVP Agreement No. 40644503. 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: By Miles Socha percent to 136.9 million euros, or $187.7 million, ac- SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR counting for 46.7 percent of parent Aeffe’s total reve- SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box PARIS — Lanvin has tapped ex-Moschino chief nues. Sales slowed marginally in the first nine months 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 on most recent label. First copy of new subscription will be mailed within four weeks executive officer Thierry Andretta as executive of 2008, growing 8.1 percent to 114.2 million euros, after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 vice president. or $173.9 million, or 47.6 percent of Aeffe’s overall Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests WWD first reported Jan. 9 that Andretta was turnover. Dollar figures are converted at average ex- to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies a candidate to succeed Paul Deneve at the fast- change rates for the periods to which they refer. that offer products and services that we believe would interest our readers. If you do not want to receive these growing French house. Deneve joined Lanvin in 2006 and saw rapid offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289- Deneve, whose title was deputy general man- growth for the Paris firm, propelled by design- 0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, ager, exited Lanvin at the end of last year, with the er Alber Elbaz’s designs, and an improving fi- PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, company citing “diverging points of view” on the nancial picture. In an interview last October, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS direction of the fashion house, which is controlled Deneve said Lanvin was on track to become a SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND by Taiwanese publishing magnate Shaw-Lan Wang. $200 million fashion house in 2008, with growth OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. It is understood that Asian expansion and lack of forecast at 30 percent last year. expansion capital were among contentious issues. The gains reflect a retooling of the supply Andretta, who has also held senior manage- chain, strides in leather goods and a rejuvenated DAILY I like to be able to ment posts at Gucci Group and LVMH Moët men’s wear business. Hennessy Louis Vuitton, left Moschino at the Lanvin posted 2007 revenues of 108.6 million QUote “dress in a way where you end of 2008 after two years in charge. euros, or $148.9 million, not including royalty in- In 2007, consolidated sales at Moschino grew 9 come of 3.7 million euros, or $5.1 million. look back in 30 years and still like what you had on..” D’Agostin Named J. Lindeberg Designer — at the Louis Vuitton men’s wear show in Paris. Page 7. By David Lipke The bulk of J. Lindeberg sales is in men’s wear, clarification as the company discontinued its women’s sports- -based J. Lindeberg has wear business in 2007. However, the J. Lindeberg Phillips-Van Heusen Corp.’s domestic production of handmade, tapped Pierangelo D’Agostin as design direc- golf and ski collections offer both men’s and wom- hand-finished men’s neckwear in remains in operation. tor, effective with the spring 2010 collection. en’s product. The brand is sold in over 25 coun- The apparel manufacturer has shut down its domestic production D’Agostin is an industry veteran who has worked tries and rings up annual sales of about 30 million of machine-made neckwear and moved it offshore. The distinction on a wide range of brands, most notably as a lead euros, or $38.8 million at current exchange. was unclear in a story on page 3, Thursday. designer at Jil Sander. D’Agostin was a key member of Jil Sander’s In his new role, D’Agostin will collabo- design team during the designer’s second ten- TODAY ON rate with creative director Johan Lindeberg, ure at her namesake label. He left the company who founded the company in 1996 but is now shortly after Raf Simons was brought aboard based in Los Angeles and runs his own brand- in 2005 following Sander’s exit. Following Jil ing and design consultancy there, called Paris Sander, D’Agostin held the top design position WWD.com 68. D’Agostin’s appointment strengthens the at Malo for a brief time, and he’s also consult- Swedish brand’s day-to-day design operations, ed for Savile Row tailors Gieves & Hawkes and • Up-to-the-minute coverage eugere F as Lindeberg himself is heavily involved with Japanese retailers Isetan and Tomorrowland. e of the Paris men's shows n Justin Timberlake’s William Rast brand, which Prior to his stint at Jil Sander, D’Agostin and • Beauty Roundup, Jan. 23 in 2007 hired Paris 68 to oversee men’s and his Swedish wife, Gunn Johannson, designed their tepha • Additional images of pre-fall from

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women’s design. own men’s wear label called hLam for more than b

D’Agostin will remain based at his home in five years. His earlier experience also includes Noten men’s Bottega Veneta, Azzaro and Akris

hoto for fall. but will commute to Stockholm regularly. design positions at Tse Cashmere and Strenesse. P • Global breaking news © Clinique Laboratories, LLC © Clinique Laboratories, LLC

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Bottega Veneta Akris Azzaro

Bottega April March Veneta for Azzaro ericksen, dominique maitre and khepri studio kyle by photos 6 WWD, friday, january 23, 2009 The Paris Commune Austere times call for austere measures — that was the message as Dries Van Noten issued his new style manifesto on the first day of men’s collections in the City of Light. Louis Vuitton and YSL had another perspective, but even their luxe offerings aimed for subtlety and classic appeal.

Dries Yves Saint Louis Van Laurent Vuitton Noten

Yves Saint Laurent Dries Van Louis Noten Vuitton

men’s collections/fall ’09 Yves Saint Dries Van Noten PARIS Laurent Dries Van Noten: Showing at the French Communist leather or alligator were faintly highfalutin, it was. But the clothes party headquarters was the first clue that Dries Van reminiscent of the tribal theme that themselves were relatively straightforward Noten had turned the page on his romantic leanings. pulsed through Vuitton’s latest women’s and had an appealing swagger. The drabness of the setting was the perfect foil for show. “[It’s] much more subtle and I think that’s Pilati said he was interested in “breaking up” a rigorous and serious collection, a manifesto on good in men’s so you don’t have costume party going familiar tailored pieces without losing their “classic” dressing for success. That is, if you’re a Stasi agent in on,” Jacobs said. appeal. And so impeccable tailored coats were paired East Berlin, working undercover as an actuary, or just Faint prints of flora and fauna crept onto formal with cropped dress pants worn over silk leggings — a think that might have been cool. satin jackets, which were paired with generously cut combo that may not be everyone’s cup of tea. “You’d The policy change left no room for Van Noten’s trousers, pleated in the front for a draped effect. A need some mighty long legs to pull them off,” opined recent habits: pleasing prints, billowy fabrics. But the slate-blue cashmere coat was belted at the waist, while Catherine Deneuve, who with fellow actress Charlotte intriguing proportions and subtle quirks were still a double-breasted velvet jacket was worn with vivid Rampling took in the show. lurking. Through a multitude of belted coats, double- red sneakers designed by Kanye West. Hoodies, scarves There were other sartorial tricks, including trousers breasted suits with exaggerated shoulders, pleated and knit hats added a sporty edge to many looks. with a funky pyramid pleat. Much of Pilati’s energy trousers and generously cut shirts, he proved that But no European safari is complete without luggage, fell to the details, from the of a faux-crocodile austerity needn’t constrict. Some suits could be worn and the Vuitton man won’t be traveling light this coat to the fine ribbing on a short leather jacket. In an two ways — buttoned single-breasted, or gathered season. Bag after bag of every description appeared, economy where showing wealth has become unseemly, further by a hook and eye. Trousers were cropped at from a Keepall weekender built like a soccer ball to a Pilati’s focused collection had the right vibe. the ankle, the better to show off tasseled loafers or an monogrammed trunk that was wheeled down the runway. odd slip-on with nonfunctioning laces. Yohji Yamamoto: You’ve got to salute Yohji Yamamoto For good or bad, the palette of pistachio, burgundy and Yves Saint Laurent: Cinema is the name of a YSL for making his dark, roomy clothes compelling. rust evoked Seventies station-wagon interiors. Only fragrance, and it’s also integral to the way Stefano For fall, the Japanese designer mixed a bit of hobo the most confident of men could design — or wear — Pilati presents his men’s wear. His latest fashion chic with cleaner sartorial elements to create a clothes inspired by an era known for ugliness, and film starred Michael Pitt — but no clothes. Instead, roughed-up beatnik look that was incontestably make them look this chic. the black-and-white clip by photographers Inez van cool. Voluminous trousers, many lopped off midcalf, Lamsweerde and Vinoodh Matadin zoomed in on the were paired with tailored coats, while Yamamoto Louis Vuitton: Brands are playing to their strengths, and actor’s face as an off-camera female voice read poetry plied two of his favorite themes — workwear and this was writ large at Louis Vuitton, where Marc Jacobs extolling the erotic power of men’s wear. Once the ode deconstruction — in jackets with utility details or and Paul Helbers, men’s wear studio director, put to crepe de chine and flannel ended, and Pitts’ eyes coats turned inside out to expose printed linings. accessories and luxury travel front and center. stopped rolling in ecstasy, models marched down a Chunky knit ensembles, pajama shirts and even a Describing this quiet collection as “the traveling short runway in the real stuff. dressing gown-like coat rounded out Yamamoto’s wardrobe of an African king adapting his taste for a Pilati described the script, read and written by funky show. It seemed ideal for a guy down on his trip to Paris,” Helbers opted for tailoring that was Stephanie Cohen, as a literary riff on the concepts luck. Or if he hasn’t lost his job, at least he can dress more French than African. Military jackets in antelope upon which he built the collection. If that sounds like he has. WWD, friday, january 23, 2009 7 WWD.COM

Louis Vuitton more from the shows... Loewe: For his second men’s collection Loewe at the Spanish house, Stuart Vevers swept away any lingering macho elements and kept the focus on high luxury and subtle sex appeal. A range of unusual fabrics, from overprinted Orylag to yak knits, added richness to Vevers’ confident and uncluttered silhouettes. Outerwear was strong, especially the soft-shouldered “dressing gown” coat and a classic trench with a detachable gray flannel lining. Pants come either cropped — a nod to the house’s equestrian roots — or in a wider “louche” cut.

Number (N)ine: One had to admire the level of handcrafted detail in Takahiro Miyashita’s artfully tattered colonial-era costumes, which also included romantic white shirts and nubby sweaters that were quite wearable. Number (N)ine Gaspard Yurkievich: Gaspard Yurkievich built his Eighties-flavored collection on tailoring, giving it graphic punch by inserting contrasting panels around the shoulders of jackets and sweaters.

Ute Ploier: Ute Ploier’s elegant yet edgy collection displayed a range of Yohji extremes, from minimalist sweaters Yamamoto with sculptural, multiringed necks to a puffed-up quilted plaid bomber.

Francisco Van Benthum: The church inspired this budding Dutch designer, whose rigid, habitlike coats, billowing pants and stand-up collar shirts were funereal, but demonstrated a talent for tailoring.

Gustavo Lins: At the core of Gustavo Lins’ fall line are cool, minimal essentials, from paneled white shirts with midriff pockets to a selection of smart wool coats. Gaspard Yurkievich

Francisco Van Benthum

For more, see WWD.com.

Hugo: Hugo’s first Paris show underscored the label’s positioning as Hugo Boss’ most modern line. Designer Bruno Pieters found inspiration in German Expressionism. Sharp-edged shapes, angular cutting and graphic black-and-white patterns drove home the point. Jackets resembled formalwear with their Gustavo dramatic cutaways. Knotless ties also held intrigue. But Hugo Ute Ploier Lins even interesting ideas become repetitive after a point. giannoni giovanni photos by

designer in fashion right now, and he reminds me of how Jay-Z Kanye West and Marc Jacobs was in rap when I came to Roc-A-Fella [Records]. Any Kanye’s Kicks time I can get around him and learn as much as possible is just a blessing.

If you’d won a slew of Grammys and been voted MTV’s WWD: What was your inspiration behind the sneaker collection? hottest emcee, you might think about putting your feet up. Not K.W.: We started from the sole. We made it lighter weight and Kanye West. Instead, the singer and producer is designing for flexible, so you can bend it…. I was inspired by the movie the feet, having been tapped by Louis Vuitton to launch a line of “Dune” because, as you know, I love sci-fi….T he collection sneakers, his passion. had all these jackets that were very padded. They looked like “I think Kanye goes to the office more than I do. He’s really, maybe they had hockey pads in the jacket, and there was one really into sneakers,” said Marc Jacobs, Vuitton’s creative director. where the collar came up really high. I took that element and WWD caught up with West here Thursday after Vuitton’s runway I put that on the back of the shoe. It’s like the opposite of the show, where the shoes made their debut, to get his take on men’s wear: tongue. Usually you have the tongue at the front. [This is] like — Emilie Marsh a tongue at the back.

WWD: What did you think of the show? WWD: How many pairs of sneakers do you own? Kanye West: I thought it was great — a really great classic K.W.: I don’t know. Maybe 400 or something like that. I just collection this time. I like to be able to dress in a way where you got rid of a bunch of them. look back in 30 years and still like what you had on. WWD: Can you tell us how you keep yours so clean? WWD: How was it working with Marc Jacobs? K.W.: Boxes. The key is keeping the boxes. I wear sneakers till K.W.: He’s my favorite designer. I think he’s the most important they get old. 8 WWD, FRIDAY, JANUARY 23, 2009 The Beauty Report Nuit de L’Homme: YSL’s Sensual Man

PARIS — In a bid to begin boldly bolstering its business, YSL Beauté will launch La However, La Nuit de L’Homme is positioned as a more edgy, daring and sensual Nuit de L’Homme — a men’s scent from Yves Saint Laurent Parfums — due out at proposition, the executives added. the end of February. “It’s all about playing, freedom and gambling,” said Durán. In part, that’s repre- It is the fi rst major project to come to market since YSL Beauté was integrated sented by the choice of the fragrance’s face. into L’Oréal seven months ago. And it is meant to create a new pillar for the brand, “We wanted an ambassador that really embodies this new masculinity,” said whose bestselling men’s scent, L’Homme, was introduced in 2006 and is now in the De Lesquen. Actor Vincent Cassel, who’s been in a spate of movies including “La top 15 men’s fragrances worldwide. Haine,” “Dobermann” and “Ocean’s Twelve,” was chosen. Renaud de Lesquen, president of YSL Beauté, explained that whereas the two “He is a very interesting actor” with a very specifi c type of seduction, De fragrances share some elements, they have separate identities. Olfactively, the new Lesquen said. scent is a fresh oriental, whereas its predecessor is a fresh woody, for instance. With the iconic photos by Helmut Newton of Yves Saint Laurent fashion in mind, La Nuit de L’Homme’s juice — conceived by International Flavors & Fragrances photographers Mert Alas and Marcus Piggott shot the black-and-white print advertis- perfumers Anne Flipo, Dominique Ropion and Pierre Wargnye — is meant to have ing image, which comes in single and double . It features a smoldering Cassel the duality of YSL fashion thanks to its three pairs of olfactive opposites. In the top fl anked by two adoring women. are notes of cardamom and bergamot; the heart includes cedar and lavender notes, Cassel suggested Gaspar Noé as the director for the fi lm campaign, which comes while the base has vetiver and coumarin notes. in 30-, 20-, 15- and 10-second takes. It shows Cassel walking through a throng of ad- La Nuit de L’Homme’s positioning differs from YSL’s prior seven men’s scents, miring women. according to YSL executives. La Nuit de L’Homme’s international launch begins at the end of February in “With L’Homme, Yves Saint Laurent started defi nitely to portray more classic Spain, then moves to France and the rest of Europe. In the U.S., there will be an masculinity with some codes that we carried on using [for La Nuit de L’Homme],” exclusive at Bloomingdale’s for March and April. said Nathalie Durán, deputy managing director of YSL Beauté. These include the The line includes 40-, 60- and 100-ml. eau de toilette sprays and a 150-ml. spray shape of the bottle and the cap, whose hexagon form is supposed to evoke urbanity. deodorant, whose prices in France are 42 euros, or $54.40 at current exchange; 55 We wanted an ambassador that really embodies “this new masculinity. —” Renaud de Lesquen, president of YSL Beauté

euros, or $71.30; 76.50 euros, or $99.10, and 26.50 euros, or $34.35, respectively. While YSL executives would not discuss sales projections, industry sources esti- mate La Nuit de L’Homme will generate $80 million in fi rst-year retail sales. De Lesquen said that La Nuit de L’Homme and L’Homme should help build each other’s business. “It’s the beginning of the very strong comeback of Yves Saint Laurent on the fragrance scene,” he explained. “The ambition with the new men’s fragrance is to enter the top 10 [worldwide].” At present, the brand does not have any individual fragrance with that ranking. “Yves Saint Laurent is defi nitely one of the key players in the beauty market; it is in the top 10 worldwide with two very strong activities — makeup and fragrance, with a very strong position in Europe and more fi elds of opportunity in the U.S. and Asia,” continued De Lesquen, who added each of those product categories (which represent about 40 per- cent and 55 percent, respectively, of the brand’s business) is ranked eighth globally. Of YSL’s fragrance business, women’s scents ring up 65 percent and men’s 35 per- cent. YSL skin care, said De Lesquen, will be a focus starting in 2010. Growing the YSL brand is key to expanding YSL Beauté, since it generates more than 80 percent of YSL Beauté’s revenues. The objective is to double YSL Beauté’s revenues within 10 years, said De Lesquen. In 2007, it generated 649 million euros, An ad for the new fragrance. or $889.6 million at average exchange. — Jennifer Weil

from Nigeria, China and a so-called “pur- A visual ple ginger” developed by Givaudan. Varvatos Looks to Boost Scent Business for Artisan’s base notes mix a woody Artisan. combination of Kephalis and By Matthew W. Evans and getting a burst of clean, fresh air.” Georgywood, along with ambery Of the olfactive composition of Artisan, Belambre and musky Serenolide. JOHN VARVATOS IS GOING FROM A compared to his other men’s scents, he Key to the scent’s image is the bottle’s vintage feel to an artisanal look. added, “We needed something lighter.” handmade, caramel-colored rattan cover, The men’s wear designer is poised Plans call for the scent to be intro- which Varvatos claimed is the only such to launch his third men’s scent, a fra- duced March 1 at a yet-to-be-named spe- hand-done prestige fragrance packaging. grance called Artisan, that is due out in cialty store chain, then roll out the “The wicker aspect is a major point March, in an effort to bolster what he month to Varvatos’ full fragrance distribu- of difference at the fragrance bar,” describes as a steadily growing Varvatos tion of 900 doors in the U.S. This network added Munafo. “It mixes hip and edgy fragrance business. includes Saks Fifth Avenue, Barneys with classic.” “We’ve got two men’s fragrances [a sig- New York, Macy’s, Bloomingdale’s, Each bottle looks slightly different nature scent called Classic and a subse- Neiman Marcus, Nordstrom and because each is a one-of-a-kind wicker quent fragrance called Vintage] that have Sephora locations. objet d’art, according to Varvatos. A been working well,” Varvatos said during Subsequent to the metal cap, meant to resemble pewter, is a recent interview. “It’s a nicely growing, U.S. launch, there are John Varvatos engraved with the name of the designer positive business — without the injection plans to roll out the and scent and it has a distressed, “old- of a new fragrance every season.” scent internationally; world” metallic look, said Varvatos. While neither the designer, nor execu- worldwide there are up- The designer worked together with tives at his Shiseido-owned licensee, JV ward of 1,600 fragrance Jon Cisler Designs to do the bottle, Fragrance & Skincare, would comment doors, which are found which has the fl ask shape of Varvatos’ specifi cally on revenues, Varvatos said his in Western and Central ration between Varvatos two existing men’s scents. Even Varvatos’ men’s fragrance business was up by dou- Europe, Russia and Asia. and Givaudan perfumer signature women’s scent, launched early ble-digits in 2008, compared with 2007. In comparison, there are Rodrigo Flores-Roux, who last year, has a similar fl ask shape. Market sources, however, project about 250 Varvatos fash- has worked on Varvatos’ Artisanal fragrances are “a lost art Artisan could push fragrance to about ion doors in the U.S. and previous scents. in the fragrance world where things 46.4 percent of net sales for the total 350 worldwide. Artisan opens with are mechanized and churned out.” John Varvatos business, which sources “The launch of Artisan notes of Sicilian clem- Varvatos said. “We said, ‘Let’s ap- pegged at around $140 million in 2008. will help solidify Beauté entines, tangelo fruit, proach [the creation of this scent] with The designer’s fragrance business, Prestige International’s Mexican winter man- an artisan mentality.’” which includes the two men’s scents and leadership position in the darin oranges, as well as thyme, Artisan will be available in two ver- a year-old women’s fragrance, comes in men’s market,” said Nicholas Spanish marjoram and Greek lavendin. sions, a 125-ml. edt priced at $75, and a at about $50 million globally with half of Munafo, president of BPI USA, which is The heart of the fragrance has an ac- 75-ml. size for $55. A $22 deodorant stick that coming from the U.S., sources said. a division of Shiseido. With two scents in cord of North African orange tree blos- will accompany the scent. They added that Artisan could do upward the top 15 [prestige ranking] within BPI’s som blended with Indian murraya, an An advertising and promotional cam- of $15 million in retail sales in the U.S. U.S. distribution network, he added, “We orange jasmine tree, which in this case, paign that will include print ads in May is- Artisan, said Varvatos, was inspired think Artisan can be the third.” is billed as a fi rst in the composition of sues of selected upscale men’s fashion and by, “Driving [to] Upstate [New York] The eau de toilette, described as a cit- a men’s scent. Rounding out the middle lifestyle magazines, Munafo noted, is said in the spring and opening the window rus, herbal scent, was created via a collabo- notes are three iterations of ginger — by sources to be worth about $5 million. WWD, FRIDAY, JANUARY 23, 2009 9

The Beauty Report WWD.COM Prada Designs Limited Edition Fragrance PRADA IS EXHIBITING A DEMOCRATIC SPIRIT WITH ITS NEW- dent,” as Andrier puts it, of Prada’s Exclusive Scent No. 4, Fleur est scent, Infusion de Fleur d’Oranger, due in March. A fall 2003 de Oranger and the house’s popular Infusion d’Iris women’s scent, The first in a range of limited edition scents dubbed the runway print borrowing notes from both. Ephemeral Infusion Collection, Prada will put the scent on coun- inspired the Key notes for the new addition include orange blossoms, tube- ter for four months — and then whisk it away. And to ratchet up the scent box. rose and jasmine. fashion quotient, Prada has, for the fi rst time, borrowed an apparel “There’s a joyful tenderness and colorfulness to Infusion de Fleur print from 2003 for Infusion de Fleur d’Oranger’s outer box. d’Oranger — it gives the impression of an orange, rather than being A new Ephemeral Infusion scent will be debuted each year. overpowering and heavy, as some orange scents can be,” said Andrier. But unlike the line’s original inspiration — Prada’s Exclusive “This has a very strong presence, but it’s a beautiful diffusion.” Scents range, which is sold only in Prada boutiques — the Jose Manuel Albesa, chief brand offi cer for Puig Beauty and Ephemeral Infusion scents will cast a wider net. In the U.S., the Fashion Group, which distributes the Prada scents, calls the new new scent and those that follow will be available in about 250 spe- introduction “a marriage of the tradition of perfumery and the cialty store doors, including Neiman Marcus, Nordstrom, Saks modern age. It is the essence of Prada as a company — Prada al- Fifth Avenue, Bergdorf Goodman, Prada boutiques, Bloomingdale’s ways offers a mix of tradition and innovation and is always true to and Barneys New York. its DNA. That is also true of this fragrance.” “The Exclusive Scent range is a very sophisticated product that The outer box, a black fl oral print with green and pink as- is very selective in distribution,” noted Tomaso Galli, Prada SpA pects, was used on the runway for Prada’s fall-winter 2003 group communication and external relations director. “For the ready-to-wear collection. “It is another way for a woman to wear Ephemeral Infusion collection, we wanted something that was lim- Prada,” said Albesa. As a bow to tradi- ited in time, but not in quantity. This is going to bring, we hope, an tion, the bottle will also be adorned increased interest in business. In today’s world, people want new with the Prada crest designed in 1913 things, playful and different. We believe that providing something by Miuccia Prada’s grandfather, that is limited in time can add to the portfolio and allow more peo- colored in orange as a nod to ple to relate to the Prada experience.” the scent’s key ingredient. The Exclusive Scent range, launched in 2003, was launched The line includes three eaux with four scents — Iris, Oeillet, Cuir Ambre and Fleur d’Oranger. de parfum — 1.7 oz., 3.4 oz., and All were positioned as customizable, allowing the user to mix the 6.75 oz., which will retail for various four juices to create a personal scent for themselves. The $74, $100 and $135 in the U.S., intent was to also disregard the traditional structure of top, middle respectively. Ancillaries include and bottom notes, said Givaudan’s Daniela Andrier, who develops a Hydrating Body Lotion, $52 for all of Prada’s juices with Miuccia Prada. “The scents were intend- 8.5 oz., and a Perfumed Bath and ed to interact with each other in an unusual, open-spirited man- Shower Gel, 33.8 oz. for $50. ner,” said Andrier. Later, Narciso, Tubereuse, Violette, Opoponax, While the company refused Benjoin and Myrhhe joined the Exclusive Scent family, the latter to discuss projected sales, in- three in 2007. All are available in Prada boutiques only. dustry sources estimated the In addition to their wider distribution, Infusion scents are intended to evoke a scent could do $5 million at re- light memory of the original ingredient, like “a footprint in the sand,” said Andrier, Prada’s Infusion tail in the U.S. in its four-month speaking specifi cally of Infusion de Fleur d’Oranger. “If this fragrance was a paint- de Fleur d’Oranger. engagement. ing, I’d see it as a watercolor,” said Andrier. Infusion Fleur d’Oranger is a “descen- — Julie Naughton Shoppers Seek Beauty Freebies Diesel Shifts Into High Gear IT WASN’T A PASSION FOR FASHION THAT brought shoppers out in frigid temperatures to By Melissa Drier tantly, the foundation.” line up around the block of Saks Fifth Avenue L’Oréal, on the other hand, is banking on Only the on Thursday afternoon: It was the promise of BERLIN — Diesel is taking a bold-fisted approach with Brave to again place Diesel among the world’s top fi ve free beauty products. As part of a settlement for its first solo men’s fragrance, Only the Brave. scents. L’Oréal executives declined to specify the sales a class action suit — Azizian, et al. v. Federated Always one to break the mold, the new Diesel scent is target, but industry sources estimate that a men’s fra- Department Stores Inc., et al., docket no. 4:03-CV- bottled in a smoky, gray fl acon in the shape of a clenched grance would have to generate $70 million at retail to 03359-SBA — 14 retailers, including Saks, Bergdorf fi st, branded by a silver Diesel silver ring on the third land in the top fi ve. and fourth fi ngers. It was inspired by Diesel founder When L’Oréal launched its fi rst men’s and women’s Renzo Rosso’s own hand, particularly the RR fi nger tat- Diesel fragrances, Fuel for Life, in 2007, the goal was toos, which he gave himself for his 50th birthday. to be among the top 10. “And we achieved the top fi ve Only the Brave, which was produced by Diesel’s and six positions” reported Ladan Lari, international fragrance licensee, L’Oréal, is set to roll out in almost managing director of Diesel fragrances. “Now we’re 30,000 doors globally, starting in Germany at the end of aiming for the top fi ve. It’s not easy to have two per- March, France in mid-April and the rest of the world fumes in that position,” she said, noting only one other in May. In addition, a customized edition of the eau L’Oréal brand, , has pulled it off. “But Only the de toilette, designed by three “street” artists, is slated Brave is a very different universe than Fuel for Life. for September. It’s more artsy, more masculine. And we want them to The range comprises 30-, 50- and 75-ml. eau de toi- coexist at retail.” lette sprays, priced at 33, 49 and 67 euros, respectively The oriental, woody, and leathery juice, developed by (or $42.50, $63 and $86.50 at current exchange rates), International Flavors & Fragrance’s Aliénor Massenet, plus 100-ml. aftershave lotion and Olivier Polge & Pierre Wargnye, balm (51 and 38.90 euros or $65.75 bravely plays with opposites. It and $50) 200-ml. shower gel (25.50 starts with a masculine and fash- euros or $33) and 150-ml. deo spray ion-related note of leather. “But (25.70 euros or $33). because Diesel is a joyful brand, The scent’s name is also directly it’s lightened up with lemon,” Lari linked to Rosso through his hold- said, and broken with dry woody The scene outside Saks on Fifth Avenue on Thursday. ing company, which is also called cedar notes and amber. Only the Brave. It encompasses L’Oréal and the Diesel cre- Goodman, Macy’s, Bloomingdale’s and Nordstrom, Diesel and Rosso’s other interests ative team are still cooking up a began distributing $175 million worth of compli- — the Maison and screen ad for Only the Brave, but mentary cosmetics to consumers Tuesday. Class Viktor & Rolf brands. In addition, the campaign for print, billboard members were eligible to receive one free cosmet- his Staff International makes and and point-of-sale features a triple- ics product from a list of brands named in the suit IANNACCONE distributes ready-to-wear ranges pack of black-and-white portraits. if they had purchased from the named companies

for Sophia Kokosalaki, Dsquared, British photographer Platon, who from May 29, 1994, to July 16, 2003. The extensive THOMAS

Vivienne Westwood and, as of next has photographed any number of list of manufacturer names included Clarins, Estée BY season, Marc Jacobs Men. famous persons of conviction, in- Lauder, Guerlain, Lancôme and Dior. Products are

“L’Oréal asked if they could cluding President Barack Obama, being distributed on a first-come, first-served basis, BOTTLE have something important for the was invited to turn his lens on and no rain checks will be issued. “We heard there

new fragrance. And they got my model, actor and former Madonna were free Chanel products and perfumes,” said Ali AQUINO; hand and my name,” Rosso said, fl ame Tony Ward, as well as two Rodriguez of Brooklyn while waiting to enter Saks. laughing. Only the Brave is also the other young men of determination “I’m here for something good.” Although there JOHN name of his charitable foundation, and will. None are identifi ed in was much anticipation among the crowd about BY

which is currently developing what the ads. which free items would be handed out, there was SAKS he would only call “an incredible A new woman’s Diesel perfume palpable disappointment on faces emerging from

new project. We’ll say more in a is also in the pipeline. “It won’t be Saks’ doors. “I got one thing and it’s a shower gel PLATON;

year’s time. But the name of the Only the Brave, but it will be em- for men,” said Rodriguez after receiving her free BY fragrance could help build aware- blematic of Diesel’s values and product. “What am I going do to with this?”

ness of the group and, more impor- The scent’s ad. passions,” Lari said. — Belisa Silva PHOTO DIESEL 10 WWD, FRIDAY, JANUARY 23, 2009

The Beauty Report WWD.COM Heavy Promos to Capture Wary Shoppers

By Andrea Nagel and Faye Brookman the launch of Jane Be Pure AquaCeuticals, a 40-item makeup line billed as natu- rally hydrating with active naturals, hydrating and organic ingredients. About 90 Mineral makeup and natural products continued to be a strong percent of packaging is 100 percent recyclable or made from postconsumer recy- theme among many manufacturers showing their wares during ECRM’s cled materials, too. Efficient Program. On counter this month, the Jane launch will be supported by several in-store Planning sessions were held last week at the Hyatt Regency Dallas Forth Worth. promotions, including prepacks for Sheer Tinted Moisturizer, AguaGlow Bronzer The Cosmetics, Fragrance & Bath session was attended by dozens of suppliers and and BlushStix, and AguaMousse Eye Shadow and AguaShimmer Eye Shadow Quad. buyers and was mostly upbeat, despite the economy and the tough holiday season. All items will sell for $6 to $8 and are available in drug, mass and food retailer While the list of retailers was impressive — including Rite Aid, Ulta, Walgreens chains nationwide. The launch will also be heavily promoted to help gain new user and Wegmans — some lamented the early timing of the show, a few weeks earlier trial including in-pack coupons, national high value freestanding inserts (or FSI’s) than the traditional EPPS Cosmetics gathering. and price-off offers in retailers’ Sunday supplement circulars, according to Jane “At least it wasn’t during Super Bowl weekend,” quipped one buyer. Nonetheless, chief executive officer Lisa Yarnell. another added that the attendees During ECRM, Jane also previewed did get to meet the Dallas Cowboys Green by Nature Girl’s lip butter its holiday program, which includes af- Cheerleaders at a special evening and e.l.f.’s Mineral Blush. fordable gift ideas for fashion driven event at the team’s nearby stadium. consumers in color, minerals and or- Buyers told WWD there wasn’t ganics. Yarnell noted that many com- anything at the trade show “to set panies held back on new launches and the world on fire,” however, they said that retailers welcomed the newness pricing was a key topic of discussion. at Jane. “Our Christmas also got a good One East Coast buyer said $9.99 is reception from what I’ve heard from the magic price point and that many the meeting,” she said. meetings focused on bringing in prod- In hair care, Green by Nature is en- ucts at that retail price, or at least tering the category with the introduc- under $15. Another said there was a tion of a new shampoo and conditioner proliferation of imported bath sets, available in three flavors (chamomile/ which yield what consumers con- rose, lavender/vanilla and lemon/ver- sider value pricing. Also, a few new bena). The items launch to indepen- fragrances were mentioned, such as a dent specialty stores in May. Steve second Tim McGraw scent along with Shweky, president of the firm, added a fragrance hawked by Faith Hill. that Green by Nature, which started A handful of big beauty players in 2004 as mainly a lip care brand, has were absent from EPPS, buyers and evolved into Green by Nature Girl, a suppliers said. But one of the biggest subbrand targeting tweens. According represented was Markwins, which to Shweky, “The tween consumer is controlled the majority of one whole the most environmentally aware and floor area with its Markwins prod- also has the most disposable income, ucts, its Wet ‘n’ Wild collection, Black yet they do not have products targeted Radiance and SoHo. According to to them in the natural beauty catego- Shawn Haynes, senior vice presi- ry. We are fulfilling that niche.” Green dent marketing, Global Brand by Nature Girl includes lip glazes, lip Development, the mood of many buy- butters and body lotion and body wash ers was “let’s get something new and in a variety of fruit-themed flavors, as exciting into our stores.” He said the well as gift sets. Halloween Fantasy Makers line was Mass market newcomer Out of extremely well received. “Halloween Africa has extended its shea butter- falls on a Saturday, so we’re expect- based portfolio and will be launch- ing really big things,” he said. Other ing new lip balms and hand creams hits included a new adjusting foun- — both of which feature a “substan- dation, a cream eye liner and eye tial” amount of shea butter (30 per- shadow palettes. Markwins’ Beauty cent in the lip balm and 20 percent Benefits was also well received and in the hand cream), according to Bill is being slowly rolled out into re- Neubauer, director of marketing and gional partners, according to Haynes. sales for Out of Africa. There is new distribution with L’Oréal’s HIP Executives from Milani said the Duane Reade and Fred Meyer. “As Color Presso most recent ECRM was “very produc- far as marketing, we are focusing on Lip Gloss. Shawn Haynes tive” and their new items were very working with our retail partners and well received, including Lip Mixer, doing more in-store activity such as Buzz Worthy, Pretty Pair and Mineral demonstrations, instant redeemable We know our consumers have been hit hard by the Mouse Foundation. “These four new coupons (or IRC) and free samples. sku’s are basic, fun and exciting We know our consumers have been “economic crisis. They aren’t as impulsive as they were.­ multitaskers,” said Susan McCready, hit hard by the economic crisis. They Milani’s vice president of marketing. aren’t as impulsive as they were — — Shawn Haynes, Markwins” E.l.f. presented its Mineral Line to they are more motivated if there is a retailers at ECRM this week, a line makeup artist working with them or a coupon attached. That makes them far more that since its launch in November 2007 has realized a modest Internet sales suc- interested in trying something new,” said Haynes. cess. E.l.f. is currently sold in Target, Kmart, Big Lots and Strawberry stores. L’Oréal Paris also presented several new cosmetics items at ECRM, includ- The Mineral Line includes a concealer, foundation, blush, lipstick and eye shad- ing Double Extend Beauty Tubes Mascara, $10.95; True Match Super-Blendable ows all priced between $3 for eye shadows to $8 for a Booster, a sheer powder that Compact, $13.95; Infallible Never Fail Powder, $14.29; HIP High Intensity Pigments absorbs oil and aims to minimize the appearance of wrinkles, fine lines and pores. Color Presso Lip Gloss, $13 and HIP High Intensity Pigments Kohl Eyeliner, $13. The Mineral Line, the company said, is made from 100 percent natural minerals Perhaps most exciting was HIP Color Presso Lip Gloss, designed to allow a user to that are crushed into a silky powder and are free from chemical additives, para- mix multiple glosses to get a desired shade. Each Color Presso features two shades, bens and chemical dyes. Packaging is also recyclable. All of e.l.f.’s minerals contain both in a custom-built pack, that can be worn alone or mixed. Color Presso is avail- titanium dioxide to provide some sun protection. able in 10 color duos, which are interchangeable and snap out of place to allow The brand is also launching $1 nail polishes this month. Despite the economy, mixing and matching with other Color Presso Lip Gloss shades. e.l.f. execs said the brand is still growing: Fourth-quarter 2008 sales were 300 per- Jane Cosmetics is building on its naturally positioned range, Jane Be Pure, with cent stronger than the previous year.

increase over 2007. At constant exchange, sales increased 14 percent to Inter Parfums Sales Down, Guidance Reaffirmed 276 million euros, or $406 million. However, the firm warned of a tough first quarter ahead. It stated that, Fourth-quarter sales at New York-based cent increase at comparable foreign exchange rates. faced with a stiff year-on-year comparison — revenues Inter Parfums Inc. dropped 15.7 percent to $100.6 mil- The firm expects to report fourth-quarter and an- since early 2008 were boosted by the successful launch of lion from $119.4 million in the same period a year ago, nual results in mid-March and reaffirmed its previous Burberry The Beat scent — and the difficult current eco- but edged out Wall Street analysts’ estimates of $98.3 guidance for full-year net income of about $25 million, nomic environment, “2009 first-quarter sales will signifi- million, according to Yahoo Finance. or 81 cents a diluted share. cantly contract in relation to last year’s first quarter.” At constant exchange, sales during the quarter Meanwhile, Inter Parfums SA, the Paris-based Inter Parfums, however, confirmed its full-year 2009 ended Dec. 31 were down 9 percent. subsidiary of Inter Parfums Inc., reported 2008 sales objective of 5 percent sales gains, and said it will con- For the full year, sales were up 14.6 percent to on target at 265 million euros, or $389.9 million at tinue to explore external growth opportunities. $446.3 million, from $389.6 million in 2007, a 12 per- average exchange for the calendar year, a 9 percent — Matthew W. Evans and Brid Costello WWD, FRIDAY, JANUARY 23, 2009 11

The HBA Report WWD.COM Beauty Exec Launches Skin Care Info Site By Andrea Nagel friends and family. (He hasn’t yet reached out to the trade or to many of his business contacts so as to keep Ron Robinson, a 20-year research and the site under wraps.) Given the launch plan, Robinson development executive for some of beauty’s leading estimates he will have more than 500,000 active mem- firms — the Estée Lauder Cos. Inc., Avon Products bers in less than a year. Each subscriber is encouraged Inc. and Revlon Inc., to name a few — had come to to chat about his or her favorite products, and also to believe his role as a scientist and product developer take part in some site queries. For example, the site’s was contributing to women’s confusion about skin Voting Booth section asks users about shopping habits, care products. likes and dislikes and what’s on their mind. “I was part of the problem,” he said about his past This data has several uses. For one, it allows life, one where he concocted everything from antiag- Robinson to best tailor the online experience to each ing serums to acne fighters for the industry’s best and individual subscriber, from product recommenda- brightest marketers. tions to targeted advertising. It also helps him build Robinson, who most recently served as global di- a database of demographic and psychographic data, rector of skin care product innovation at Avon, left which can be customized or syndicated to manu- the firm in May 2008 to embark on a new career: facturers and retailers. Each subscriber also must informer. For the past seven months, he has inter- answer 12 short beauty questions upon becoming a viewed hundreds of women across the country to find member, another way Robinson can target info to out why and how they make decisions to each user. buy a product. He was a little surprised Robinson expects to generate about by what he found. $500,000 in first year revenues on his “In general, there is a lot of site. Beginning today, products can be confusion and dissatisfaction,” purchased from Beautystat.com via said Robinson. “I guess there is a partnership with Amazon — how- a sense of skepticism given the ever, Robinson’s goal is to have strong claims [products make], Ron Robinson an affiliate program set up with and women are confused.” retailers whereby a subscriber A screen grab from Beautystat.com. These days, Robinson is could purchase items by clicking tip. It simply reports on what works.” busy trying to address wom- a link that brings them to a re- Beautystat looks to grow substantially when it en’s dissatisfaction with skin tailer site. A percentage of every creates applications for Facebook, MySpace, Twitter care products with Beautystat. sale would go to Beautystat. and YouTube, the Internet’s major social network- com, a New York-based Web Robinson plans to target retailers ing sites. For example, Facebook, said Robinson, has site he founded with a Silicon such as Drugstore.com and sepho- about 25 million female members, many of whom Valley technology expert, dedi- ra.com, among others. he considers a major source of membership in the cated to providing women (and Contributing to most of the site’s coming months. A Facebook application is planned men) with unbiased views and opin- content — such as The Buzz, which for February. MySpace is planned for May, and a mo- ions of products, as well as advice on talks about everything from new products bile application for Blackberry and iPhone users is which items may actually target their spe- to trends — is Beautystat’s editor-in-chief, planned for fall. Creating inbound links from other cific needs. Currently, the site offers members Charu Suri, who also serves as editor to CVS’s in- social network sites and blogs looks to grow subscrib- recommendations on facial and eye treatments. In the store beauty glossy, Reinventing Beauty. Dr. Jeffrey er , too. spring, it will offer color, foundation, concealer, mas- Dover, a dermatologist who sells an eponymous skin Mobile applications is where Robinson’s dream of cara, lip, nail and body treatment recommendations. care line at CVS, will also contribute to Beautystat, providing at-a-glance information for consumers has And in the fall, hair treatments will be recommended. joining Dr. Adam Geyer, a Manhattan-based dermatol- such large potential. “My research showed that the information they most ogist who currently has an article addressing eczema “What if you could get product info at point of pur- rely on is from friends with similar skin concerns. This on the site. chase?” asked Robinson, who answered his own ques- site will offer that to them on a bigger scale,” he said. Robinson assured that Dr. Dover is well aware of tion by saying how many more women would actually Beautystat, which launched the first week of January, the site’s mantra: “Beautystat does not support bias make purchases if they could have unbiased opinions has about 400 subscribers, most of whom are Robinson’s or favoritism toward any beauty company, product or at their fingertips. Kristin Davis On Ahava, Apparel and the Big Screen By Julie Naughton spending for the Mineral Botanic line, although industry sources estimated that the line could do at least $2 million at retail in its first year on counter in the U.S. Kristin Davis wants everyone out there using SALT — namely, Sources estimated that the company may be spending double that figure this year Ahava’s new Mineral Botanic body wash line with Dead Sea salts. with the Davis ads, to raise awareness for a line the company hopes could become “I have very, very sensitive skin, and the items I love have natural elements a brand stalwart. to them,” said the actress, speaking in an exclusive phone interview from Los Davis is currently filming “Couples Retreat,” a comedy that involves four cou- Angeles. “I had a pedicure at a spa using Ahava, and I was hooked. It was such ples who travel to a tropical island for a vacation — and mandatory therapy ses- a miracle to meet a company with such a commitment to natural, paraben-free, sions. It also stars Vince Vaughn. “We went to Bora Bora for a month [to film], and sulfate-free, mineral-enriched products.” I made sure I had my sunscreen from Ahava Davis noted that the Mineral Botanic line, which Kristin Davis at all times,” she said with a laugh, noting that launches in late February, is created from organic the film is still wrapping up in Los Angeles. No plant extracts and nut and plant oils, and the range firm date has been set for the release, although is broken down by skin type. The normal-to-dry Davis noted that it will likely be released in the skin range includes Grape & Avocado, Frangipani summer or fall of this year. & Orange and Water Lily & Guarana; very dry skin’s Davis’ apparel deal with Belk’s continues, options are Hibiscus & Fig (Davis’ favorite) and although, like everyone else’s business, it has Pansy & Bamboo. For the most sensitive of skin, been affected by the economy. “Belk’s is very there is Lotus Flower & Chestnut and Honeysuckle secure, so that’s good, but things have slowed & Lavender. Each retails for $19.50 for 17 oz. and down a little,” she said, adding that she grew up will launch in about 1,000 department and specialty shopping at the store. “I think there’s a cynical store doors, including Ulta. Distribution could dou- view of celebrities in endorsement deals. There ble by yearend, according to Michael Etedgi, chief are people who think that all celebrities are executive officer of Ahava North America. taking any deals that come our way. We aren’t. “We noticed that there wasn’t a line of natural I think the trick is to find a good brand that you body washes that specifically focused on different love in real life and to stick with that. If you’re skin types, and we wanted to fill that void,” said not in sync with the company, the deal doesn’t Etedgi. “We have developed a formulation based work — especially in this economy.” on a new technology using microspheres, which And it’s more important than ever, she says, to allows us to encapsulate very high concentrations of oils and minerals from the deliver quality at an affordable price. “It’s not about being the cheapest, necessarily Dead Sea.” The products are all paraben-, SLS- and SLES-free. — it’s about delivering quality products for a reasonable price,” Davis said, who has Davis recently shot the brand’s newest ad campaign — which begins in March served as Ahava’s spokeswoman since fall 2007. “Ahava does that — they’re not just fashion, beauty and lifestyle magazines — at the Dead Sea with Australian pho- creating a marketing story. Sarah Jessica [Parker] did it with Bitten [her clothing line tographer Russell James, who also shot the brand’s 2008 campaign. “The water is with Steve & Barry’s], and I’m trying to do that with Belk’s. It can be challenging to very thick and rich because of the minerals and the algae,” Davis said. “It’s the get those designer details in there at a reasonable price. But it can be done.” lowest place on the planet, geographically, and when you’re in the water it’s hard As for the question on everyone’s lips — will there be a “Sex and the City” to move easily — it’s like being on the moon with water. But this water, which movie sequel? — Davis advises everyone to hold tight for a little longer. “We want Ahava uses in all of its products, gives you the deepest, yet not harsh, exfoliation to,” she said, “and we’re working toward it, but we’re still in the working-toward-it and incredible moisturization.” phase.” And she has an apology for the women of America: “I didn’t mean to get Both Davis and Etedgi declined to discuss sales projections or advertising everyone addicted to the most expensive shoes out there!” she said. 12 WWD, FRIDAY, JANUARY 23, 2009 WWD.COM Revving Up for Oscar Red Carpet By Marcy Medina BEST ACTRESS BEST SUPPORTING ACTOR BEVERLY HILLS — The players are set for the red carpet’s main Anne Hathaway, “Rachel Getting Married” Josh Brolin, “Milk” event. Angelina Jolie, “Changeling” Robert Downey Jr., “Tropic Thunder” The Oscar nominees announced here Thursday include Melissa Leo, “Frozen River” Philip Seymour Hoffman, “Doubt” high-profi le fashion names such as Anne Hathaway, Angelina Meryl Streep, “Doubt” Heath Ledger, “The Dark Knight” Jolie, Kate Winslet and Penélope Cruz. Kate Winslet, “The Reader” Michael Shannon, “Revolutionary Road” First-time nominee Hathaway is a rising star, having scored on several best-dressed lists for her red Marchesa BEST SUPPORTING ACTRESS BEST COSTUME DESIGN gown at last year’s Oscars, and throughout her “Devil Wears Amy Adams, “Doubt” Catherine Martin, “Australia” Prada” and “Rachel Getting Married” press tours. Penélope Cruz, “Vicky Cristina ” Jacqueline West, “The Curious Case of Her stylist, Rachel Zoe, has access to top design houses. Viola Davis, “Doubt” Benjamin Button” Hathaway has worn almost every designer from Valentino Taraji P. Henson, “The Curious Case of Michael O’Connor, “The Duchess” to Marc Jacobs over the past few seasons. Benjamin Button” Danny Glicker, “Milk” Zoe said Thursday she is again meeting with the star Marisa Tomei, “The Wrestler” Albert Wolsky, “Revolutionary Road” today “for her SAG Awards fi tting, so we’ll talk more about Oscars….It will come down to the couture, the New York BEST ACTOR BEST MAKEUP collection and what people want to custom make. Richard Jenkins, “The Visitor” Greg Cannom, “The Curious Case of “At the end of the day, we want glamour, and Oscars Frank Langella, “Frost/Nixon” Benjamin Button” is always that ultimate fantasy Cinderella moment,” she Sean Penn, “Milk” John Caglione Jr. and Conor O’Sullivan, said. “I or my clients never get our heads stuck on one Brad Pitt, “The Curious Case of “The Dark Knight” idea, because you can have an idea, and then all of a Benjamin Button” Mike Elizalde and Thom Floutz, “Hellboy II: sudden a dress shows up that is completely contrary to Mickey Rourke, “The Wrestler” The Golden Army” what you wanted, but it’s perfect and it ends up being the one.” Jolie’s tastes are more predictable — streamlined Atelier Versace and vintage in monochromatic colors. “Penélope exudes classic, European elegance, but her style is, at the same time, Her stylist, Jennifer Rade, isn’t a fashion snob, however, simple and unstudied,” Ehrlich said. so her choices are sometimes unpredictable, such as the More unpredictable is Marisa Tomei, nominated for the third time (she’s won once). simple Grecian gown by David Meister that Jolie wore to Tomei, a New Yorker and fashion risk-taker, can wear edgy styles by Giambattista the awards in 2003. Valli and YSL with aplomb, and can also make de la Renta look funky, as she did at

HATHAWAY PHOTO BY STEVE EICHNER; ALL OTHERS BY TYLER BOYE TYLER BOYE STEVE EICHNER; ALL OTHERS BY PHOTO BY HATHAWAY Winslet, believed by many in Hollywood to be the the Golden Globes. front-runner for best actress when the 81st annual Two acting vets who are fi rst-time nominees are Viola Davis and Taraji P. Henson. awards are handed out Feb. 22, also sticks to a predict- Both have not yet found enough red-carpet clout to command custom dresses from top able silhouette that fl atters her fi gure, a body-hugging designers, but that will surely change in the coming weeks. For her part, Henson is bodice and A-line gown, typically in strong solid col- not afraid of color and prints, as she has demonstrated in looks from Kevan Hall and ors or black or white. She went safe at the Golden Kaufmann Franco. Davis has so far played it safe in black Giorgio Armani. Globes this month in a ▲ Kate Winslet black strapless Yves Saint Laurent gown, so look for her Anne to break out with a “special” dress for the big day, Hathaway as stylist Jessica Diehl will likely build momentum throughout awards season. Melissa Leo, a nominee for the little-publicized “Frozen River,” will receive the least attention on the red carpet, since she’s more actor than fashionista. She was seen at the Sundance Film Festival this week making her way around Park City, Utah, in jeans and a down vest. Meryl Streep, earning her record 15th nomination, usually veers toward artful black or navy ensembles by Prada or Donna Karan. The best supporting actress category again boasts fashion and Hollywood darling Amy Adams, who wore Carolina Herrera when she was nominated for “Junebug” two years ago, and Proenza Schouler last year. In be- tween, Adams has worn Yves Saint Laurent, Zac Posen and Chanel, among others. Though the roster of designers is varied, the petite ac- tress, styled by Cristina Ehrlich, prefers to stick to body- conscious solid colors that fl atter her frame. She’s not afraid of color, choosing purple, electric blue and teal for past red carpets. Cruz tends to go with European couture or Oscar de la Renta on important occasions. Both are favorites of For more, Ehrlich, her stylist. Last year she wore Chanel Couture, see WWD.com. the year before Atelier Versace and the year before that Angelina Jolie Penélope Cruz Amy Adams custom-made de la Renta.

industry’s declines, slipping 23 percent to 2,744, according PLAYBOY RESHUFFLES: Playboy’s changes go on. The MEMO PAD to fi gures from Media Industry Newsletter (which broke the company said Thursday that it expects to incur charges LEAVING IN STYLE: Time Inc. has lost nearly 600 staffers news Thursday of Brubaker’s departure). As the recession related to streamlining its cost structure, which will result during its latest reorganization at the company, but at least continues, magazine issues continue to shrink: through in an operating loss for the fourth quarter and full year, one executive has chosen to leave on her own terms. In March, In Style posted a nearly 30 percent drop in pages, to ending Dec. 31 (the results will be reported Feb. 18). The Style publisher Lynette Harrison Brubaker is departing after 436. It’s not alone: nearly all the major fashion magazines write down of goodwill and other assets is expected to be in seven years at the helm. The publisher will stay in her role are posting declines of 20 percent or more in advertising for excess of $100 million, and the company plans to report a until a replacement is found by Time Style & Entertainment the fi rst quarter. — Stephanie D. Smith fourth-quarter 2008 restructuring charge of approximately president and group publisher Paul Caine, to whom $4 million, relating to streamlining initiatives. More Brubaker reports. MEREDITH SEES TOUGHER TIMES: Meredith Corp., publishers restructuring charges are expected to be reported during the Brubaker, who has three children under the age of four, of More and Better Homes and Gardens, on Thursday fi rst two quarters of 2009, Playboy said. decided after returning from the Golden Globes that she provided an advertising forecast for the third quarter, noting As part of the restructuring, the company will wanted to give up her role. She informed Caine last week that publishing ad revenue could be down 15 percent, consolidate its print and online operations in Chicago, and told her staff on Wednesday. Her decision comes after compared to a decline of nearly 20 percent during the keeping a “small editorial and sales presence in New a slew of changes at the fashion magazine. In August, In fi rst half of fi scal 2009. In addition, the company said York,” but it expects to sublet its existing offi ce space and Style underwent a redesign, then named a new managing broadcasting ad revenue pacings are currently down move some licensing, editorial and publishing positions editor, Ariel Foxman, after promoting Charla Lawhon to approximately 40 percent, thanks to a 70 percent decline to Chicago — a move that is likely to lead to more layoffs. editor of the In Style Group of magazines, which gave her in automotive pacings. The company promoted Jimmy Jellinek, previously division oversight of all international editions and spin-offs. In As for the recently completed second quarter, net earnings senior vice president of digital content, to editorial director November, Brubaker began reporting to Caine after Time were down 65 percent, to $12.5 million, thanks to a special of combined print and online content. That appointment Inc. reorganized the portfolio of magazines into clusters, charge of $16 million that included the cost of layoffs, the was fi rst reported by The New York Post on Thursday. with a top sales executive overseeing each group. closure of Country Home magazine and relocation of staff. Jellinek, former editor in chief of Maxim, will report to Brubaker joined In Style in 2001, after serving as Publishing operating profi t was $15 million, compared to Hugh Hefner and be based in Chicago. Chris Napolitano, publisher of W and then WWD. At In Style, she steadily $45 million a year ago. Revenues were $282 million, versus former editorial director of the magazine, will now serve grew the numbers to 3,222 ad pages in 2007 from around $309 million during the second quarter of fi scal 2008 and as editor at large based in New York, as family obligations 3,000 fi ve years before. But as the economy tanked ad revenue was $122 million, compared to $153 million have prevented Napolitano from making the move to the throughout 2008, In Style’s pages mirrored the rest of the during the prior year. — Amy Wicks Windy City. — A.W. WWD, FRIDAY, JANUARY 23, 2009 13 WWD.COM Jones Writedown May Suggest Trend Continued from page one provisions in loan agreements or cast in a new light deals market capitalization and shareholders’ equity in rela- that were inked when the market was at a high. tive balance. “It doesn’t mean the acquisition was bad strategical- While it often doesn’t reflect the true health of a com- ly,” said Ed Henderson, vice president and senior ana- pany, it’s important because it can have a major impact lyst at Moody’s Investors Service. “Given this market, it on loan terms and other fiscal instruments. just looks like almost everybody overpaid. The amount Possible writedowns ahead for some, including that is reflective of that is goodwill.” Macy’s Inc. and Sears Holdings Corp., could reach into Macy’s, which used to be known as Federated the billions of dollars. For example, Sears has good- Department Stores, could have one of the quarter’s will of $1.66 billion; Liz Claiborne Inc., $676.8 million; largest write-offs. Or the firm’s accountants might also Oxford Industries Inc., $248.6 million; Casual Male determine that charges are not needed. Retail Group Inc., $63.1 million; Destination Maternity When Macy’s purchased rival May Department Stores Corp., $50.4 million, and Hartmarx Corp., $38.8 million. in 2005, it took on $12 billion in debt and acquired assets Firms are required to evaluate the goodwill on valued at $23.79 billion. Among the assets, stores, invento- their books annually. And even if it’s not time for ry and other physical assets were worth $14.2 billion. So their scheduled review, many companies might de- Macy’s, as accounting standards dictate, classified much cide to take a second look this quarter given account- of the remainder as either goodwill — $8.95 billion — or ing rules that could view the economic downturn as a intangible assets — $679 million. As of Nov. 1, Macy’s had triggering event, said Steve Barr, spokesman at auditor goodwill of $9.12 billion on its balance sheet. PricewaterhouseCoopers. The financial crisis, the recession and Macy’s per- “It’s reasonable to expect that, given the current eco- formance drove the value of all of its shares down to nomic environment, we will see companies evaluating a total of $3.95 billion Thursday, meaning the firm’s ac- goodwill impairments,” he said. countants might have to wipe away a big chunk of its For many, it will amount to an accounting insult after goodwill to restore balance to its finances. financial injury caused by the recession. For example, earlier this month, grocery chain Even without the charge, Jones said 2008 earnings Supervalu Inc. registered a $2.9 billion loss for its third would be less than previously projected. The company quarter, the result of a $3.1 billion aftertax charge to write also took steps to save about $33 million annually and down goodwill and intangible assets. On a smaller scale, reduced its quarterly dividend to 5 cents a share from Claiborne’s loss of $435.7 million in the fourth quarter of 14 cents. Without going into specifics, the company said 2007 was driven by a $343.1 million goodwill charge. it would cut staff and eliminate unprofitable divisions. A large charge could have been a serious problem for “While our previous guidance considered the difficult Macy’s, but the firm renegotiated its bank agreement in retail environment prevailing at that time, conditions sig- December so a writedown for goodwill would not impact nificantly worsened as the quarter ended,” said Wesley its access to credit. Card, president and chief executive officer. “The result- With the credit markets tied up in knots, refinanc- ing increase in promotional activity by our customers and ing has been more expensive and difficult to execute. in our own retail operations impacted our results.” Macy’s had to pay lenders a fee to amend its credit Without the charge, Jones said adjusted fourth-quar- Macy’s has goodwill on its books from its acquisition of May, arrangement, while agreeing to higher fees and inter- ter losses from continuing operations would range from which included Marshall Field’s. est rates. Other firms, including Claiborne and Jones, 3 to 6 cents, where analysts were looking for a loss of The firm also cut its planned capital spending to $45 recently refinanced to smaller, more expensive credit a penny. Adjusted earnings for the year are slated for million this year from about $70 million in 2008. At the deals. Claiborne’s eliminated leverage and asset cover- 85 to 88 cents a share, down from the 93 to 98 cents the end of the year, Jones had approximately $335 million age covenants, while Jones’ covenants were “adjusted company previously projected. in cash on hand. to provide Jones with greater flexibility in the operation The company declined to elaborate. of its businesses during these unprecedented economic Jones is taking Investors pushed shares of the firm down 48 cents, or times,” the company said in December. Failure to con- a charge in 11.8 percent, to $3.60 on Thursday. form to performance covenants in credit arrangements its wholesale Jones’ flagging stock price — the issue is down 83.7 can result in termination of credit lines or force compa- footwear and percent from its 52-week high of $22.12, reached on nies to renegotiate them. accessories Sept. 8 — is partially to blame for the quarter’s charge. If Macy’s does end up taking a goodwill writedown, division, which “As a result of the extremely challenging market condi- it might take the opportunity to do some additional includes tions and the resulting decline in our stock price, we were housecleaning. Nine West. required under the accounting rules to record noncash “There is a chance that, if they announce a writ- goodwill and trademark impairment charges in the fourth edown, that they would close stores in conjunction quarter,” said John McClain, chief financial officer. with that,” said Deborah Weinswig, equity analyst at Many other companies could get caught in the same Citigroup Global Markets, noting the retailer could shut- vise and opt to write down goodwill, a balance sheet stand- ter at least another 50 of its 848 stores. Macy’s recently in for intangible assets such as brand names and business said it would close 11 locations, and Weinswig said it reputations that were picked up through acquisitions. could also consolidate its four Macy’s divisions into one How pressing such write-offs are is an open question. unit this year. “While this is important, it’s not a cash charge — it’s Although a big writedown might make for 10-digit an accounting charge,” said David Botwinick, managing losses, Wall Street would probably not be fazed since director at MHM Mahoney Cohen, CPAs, speaking gen- the company rejiggered its credit agreement.

homas Iannaccone erally. “It’s all on paper. What it means is interpreted by “I don’t think this would catch people by too much T the person it’s important to.” surprise,” Weinswig said. “If this is part of a new, longer- Even if beauty, or economic unsightliness, is in the term strategy, I think investors would applaud it, what-

Photo by Photo by eye of the beholder, such charges can trigger important ever that strategy might be.”

Moët Hennessy Louis Vuitton, parent of Loewe, will directly Newspapers in his native city of Taipei, Taiwan, dedicated plenty FASHION SCOOPS supervise the brand in addition to his other responsibilities. of ink to celebrating their hometown hero. Taiwan’s largest NOT CLOSING: A spokeswoman for Three on the Bund has denied Pineda had joined Loewe three years ago from Spain’s Women’s circulation newspaper, the Liberty Times, ran a banner head rampant speculation the Shanghai luxury landmark will close Secret lingerie chain. reading “Michelle’s Evening Gown designed by Taiwanese.” The sometime this spring. “We are not closing, definitely not,” she China Times declared in large-print type: “Michelle’s Beauty told WWD Thursday. Since late last year, rumors have swirled HOLLYWOULD’S HIATUS: If you’re looking for Holly Dunlap, you makes Jason Wu an Overnight Sensation.” Until now, the designer around the city that the dining and retail destination, the oldest won’t find her in Hollywould. The founder and creative director was relatively unknown in Taiwanese fashion circles but clearly of several such projects on Shanghai’s historic waterfront, will of the contemporary footwear, accessories and dress brand that has changed. “Taiwan’s fashion colleges turn out lots of talent be converted in whole or part into a boutique hotel. Sources owned by Kellwood Co., writes on her Web site, hollywould. every year, and very few have the chance to leave the island,” said characterize the closure as an open secret and claim staffers com, that she has officially gone surfing, dancing and possibly Taiwan designer Sophie Hong, who read about Wu for the first time have told their friends, but tenants are not yet allowed to confirm even writing a book. “After nine years of lots of work and loads in Thursday’s United Daily News. “This is great news for us. Jason their departure. “Like elsewhere we are trimming budgets and of fun, Hollywould and I are taking a nice long vacation,” is a natural introduction to Taiwan for the world of fashion.” postponing a few things until next year,” the Three on the Bund Dunlap said. “In 2009 you may find us surfing off the beaches spokeswoman said, adding there has been a recent management of Brazil, skiing in the mountains of Switzerland, sailing near SNAP JUDGMENT: Sir Paul Smith taps into his other passion, change at the helm. New chief operating officerJohnny Kiu has the shores of Italy, and sunning on the sands of Palm Beach, photography, for a special supplement of the left-wing daily recently taken over from managing director Alan Hepburn. The and wherever we are, we’ll be thinking of you.” newspaper Liberation. The eight-page edition, out Saturday, spokeswoman said she had no idea what prompted the closure The statement said the brand could resurface soon, if it features the designer’s recent snaps plus an in-depth interview speculation. “Rumors are rumors: people hear a story and it finds new backers, as Kellwood said in October that it was in which Smith weighs in on the current crisis; opining that grows out of proportion. We will not be closing in the foreseeable hoping to sell the brand. “When will we be back? Maybe very the world’s financiers behaved like spoiled children to whom future,” she countered. “All that I know is that things will stay as soon, but hopefully not until we’ve had time to master our surf nobody dared to say stop. they are, and all the restaurants will stay.” Three on the Bund’s & snowboard skills, write at least one book, learn at least one biggest luxury tenants include Giorgio Armani and Hugo Boss. new language, visit at least three exotic places, and learn how THE PITS: After clocking up her fair share of catwalk miles, Helena to dance the tango,” Dunlap writes. Christensen is coming in for a pit stop — at the end of the runway. CHANGE IN SPAIN: Alberto Puyol Pineda, chief executive officer of It looks like it could be a while. The model will lend her lens to shoot Eric Wright’s debut catwalk Loewe, will leave the Spanish fashion house at the end of the show for Façonnable here on Saturday. Christensen, who does month to pursue other interests, WWD has learned. Pierre-Yves HOMETOWN BOY: The New York fashion flock isn’t the only photography for fashion magazines and solo exhibits, will also be Roussel, chief executive officer of the fashion division at LVMH community reveling in Jason Wu’s Michelle Obama coup. shooting Façonnable’s upcoming campaign for the second time. 14 WWD, friday, january 23, 2009 WWD.COM Financial For full daily stock changes, see WWD.com.

Eddie Bauer Sales, Estimated Net Fall 10 Best Performers By Alexandra Steigrad basis. Excluding currency translation, comps fell 1.1 percent. DAILY COMPANIES P/E Volume Amt Eddie Bauer Holdings Inc. on The company ended the year with Thursday reported lower sales and es- $60.4 million in cash. High Low Last %Change timated earnings results for the fourth “In spite of the recession in 2008, we quarter. managed to improve our year-over-year For the quarter ended Jan. 3, the adjusted EBITDA and cash flow,” Fiske 1.22 0.48 Eddie Bauer (EBHI) - 1015000 0.93 +93.71 outdoor lifestyle apparel retailer said noted. “Our sales were soft, but much of sales declined 5.7 percent to $356 mil- the market fared worse. Our turnaround 7.37 6.46 Lululemon (LULU) 10.8 508241 7.21 +6.19 lion from $377.6 million a year earlier as program continues to show results, even comparable-store sales slid in a tough environment.” 8.8 percent overall and Even with their strong 2.55 2.32 Parlux Fragrances (PARL) 30.5 31752 2.54 +4.10 5.7 percent excluding the showing Thursday, impact of the fall of the Eddie Bauer’s shares 4.36 3.98 Perry Ellis (PERY) 3.3 96233 4.17 +3.47 Canadian dollar. continued to trade at a Eddie Bauer said it fraction of their recent 3.20 3.20 Delta Apparel (DLA) 15.5 500 3.20 +3.23 anticipates quarterly WWD price. One year ago, the adjusted earnings before stock closed at $5.74 and 0.38 0.38 Tarrant Apparel (TAGS) - 200 0.38 +2.70 interest, taxes, deprecia- as recently as Sept. 11 tion and amortization of hit a 52-week high of 10.53 9.45 J. Crew (JCG) 6.9 1934540 10.26 +2.70 $53 million to $58 mil- INDEX $8.72. The correspond- lion, a decline of $2 mil- ing low, going back to lion to $7 million from Dec. 5, was 30 cents. 5.98 5.54 Bebe (BEBE) 8.8 558177 5.85 +2.63 the year-earlier quarter. Composite The company has During the quarter, 670.44 struggled to regain mo- 12.31 11.46 Gap (GPS) 8.6 8333043 12.01 +2.56 the firm said that high mentum since share- levels of promotions holders rejected its sale 21.10 19.37 Aéropostale (ARO) 9.6 2219199 20.59 +2.54 drove down merchan- to private equity firms dise margins, and that Sun Capital Partners inventories fell about 8.2 Inc. and Golden Gate percent. The company Capital in February ended the year with 376 2007. 10 Worst Performers stores, 16 fewer retail Eddie Bauer’s ad- units and one more out- vance came on a day DAILY COMPANIES P/E Volume Amt let store than at the be- when stocks struggled ginning of the year. to avoid declines, al- High Low Last %Change Neil Fiske, president -8.32 though the S&P Retail and chief executive of- Index’s 0.7 percent re- ficer of the Bellevue, treat, to 267.50, was bet- 0.55 0.42 Casual Male (CMRG) - 199137 0.42 -19.23 Wash.-based specialty ter than the Dow Jones chain, described the retail Industrial Average’s 1.3 environment in the quarter as “brutal percent drop, to 8,122.80, or the S&P 1.74 1.32 Zale (ZLC) - 2091634 1.45 -15.70 — the worst in decades.” 500’s 1.5 percent descent to 827.50. Shares ended Thursday’s trading ses- All three indices outperformed the 1.20 1.02 General Growth (GGP) 5.5 5296718 1.03 -15.57 sion at 93 cents, up 45 cents, or 93.7 per- Nasdaq’s 2.8 percent drop to 1,465.49, cent, the largest percentage gain on the paced by Microsoft Corp.’s 11.7 per- 2.84 2.34 Saks (SKS) - 3070644 2.40 -14.29 Nasdaq exchange. cent sell-off after it jolted Wall Street To cope with the downturn in 2009, with news of disappointing second- 1.30 0.96 Bon-Ton (BONT) - 250716 1.08 -13.60 the company said it would limit capital quarter earnings and 5,000 layoffs, the spending to $15 million, reduce selling first in its history. 0.13 0.07 Nitches (NICH) - 30306 0.13 -13.33 general and administrative expenses to Among the larger declines regis- $10 million to $15 million from the 2008 tered in the worlds of fashion and level of between $45 million and $50 beauty were Casual Male Retail 5.53 4.83 CBL (CBL) 11.3 2931273 4.93 -12.59 million, freeze salaries and cut the size Group Inc.’s 19.2 percent slide to 42 and expenses of its board. However, it cents and Saks Inc.’s and The Bon- 4.04 3.51 CCA (CAW) 7.4 92239 3.63 -12.32 also plans to accelerate product devel- Ton Stores Inc.’s respective declines opment and new launches. of 14.3 percent, to $2.40, and 13.6 per- 3.80 3.46 Jones Apparel (JNY) - 2963932 3.60 -11.76 For the year, the company estimates cent, to $1.08. Zale Corp. had its sec- adjusted EBITDA of between $50 mil- ond consecutive double-digit decline 16.37 14.89 Kimco Realty (KIM) 13.0 10717398 15.10 -9.63 lion and $55 million, an increase of $8 since the announcement on Tuesday million to $13 million over 2007. Sales of the departure of chief financial offi- * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the for the year totaled $971.3 million, 1.8 cer Rodney Carter, dropping 15.7 per- London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs percent lower than in 2007, and were cent to $1.45. and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. down the same amount on a same-store — With contributions from Arnold J. Karr Hilfiger Grows Web Team, Takes Bags In-house Study: $25B in Sales There for the Taking By Whitney Beckett Leather Goods, pled guilty to mail and By Sharon Edelson ability [to succeed].” wire fraud in excess of $19 million from At a time when most retail analysts Tommy Hilfiger USA Inc. is focus- the company over a seven-year period. Calling all retailers with are reducing their estimates, Dreher and ing more on its e-commerce presence and “In our efforts to continually elevate strength, smarts and resiliency: more Deutsche Bank are going against the cur- continuing to bring its accessories busi- our product offering, we’ve seen great ben- than $25 billion in sales is up for grabs, rent and raising estimates “because we’ve ness back in-house. according to a study released Thursday. identified $9.6 billion of sales from bank- The company has hired Kate Klemmer The volume includes $9.6 billion from ruptcies and liquidations and another $17 Terry, vice president of Internet for We’ve seen great Steve & Barry’s, Mervyns, Goody’s Family billion waiting to happen,” he said. Coach Inc., for the new role of execu- Clothing Inc., Value City, Circuit City, Diminished consumer spending will tive vice president for global Internet. benefit“ in bringing Charming Shoppes Inc., Linens-N-Things worsen in the next three to six months, Prior to Coach, Klemmer Terry was vice and other retailers that liquidated or Dreher said. president of licensing and e-commerce specific areas of our closed stores. It also includes $17 billion “The winners are going to dine on the at Kate Spade. Based in New York and from underperformers such as Gap Inc., corpses of their competitors,” he added. Amsterdam, she reports to Fred Gehring, business in-house.­­ Saks Inc., Neiman Marcus Inc., Limited “Consumer spending will be down 6.5 chief executive officer of Tommy Hilfiger. Brands Inc., J. Crew Group Inc., Sears percent in 2009. Even with spending In other news, Hilfiger is bringing its — Fred Gehring, Tommy” Hilfiger Holdings Corp., Bon-Ton Stores Inc. and down, it’s the consolidation to the lead- handbag and small leather goods business Eddie Bauer Holdings Inc., according ers that will drive business at Macy’s, in-house, effective for fall. Tommy Hilfiger efit in bringing specific areas of our busi- to the report by Deutsche Bank, “Retail Kohl’s and J.C. Penney.” Handbags & Small Leather Goods, which ness in-house,” said Gehring. “We believe Industry ’09 Outlook: Retail Shakeout to Dreher compared the consolidation were previously handled by an indepen- that having both the footwear and hand- Drive Leaders Ahead of Recovery.” of regional department stores with the dently owned licensee of Hilfiger (earlier bags and small leather goods in-house will Bill Dreher, a retail analyst at disappearance of regional discounters known as Dickson North America), will give us more control over these businesses Deutsche Bank and an author of the such as Bradlees, Caldor and Aimes now be part of a new accessories division and improve brand alignment.” study, said the underperforming retail- during the last economic downturn. that already includes footwear, which was Bornie Del Priore, executive vice ers do “not have a strong value proposi- “For the last 10 years, department stores brought in-house in late 2008. president of accessories, who joined tion. They are being outflanked by their have been ridiculous with promotions,” In September, Martin S. Bodner, for- Tommy Hilfiger in 2008 and reports to competition and have a poor capital Dreher said. “It will moderate as these mer chief financial officer of the licens- president of licensing and accessories structure, which further inhibits their consolidations occur.” ee Tommy Hilfiger Handbags & Small Anne Marino, will lead the division. WWD, FRIDAY, JANUARY 23, 2009 15 WWD.COM/CLASSIFIEDS

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