Step Sisters to Easily Identify What’S in Stock, Retrieve Merchandise from the Stockroom and Ring up a Sale Without Ever Leaving a Customer’S Side

COUTURE JEWELRY PREVIEW WHAT WILL SPARKLE IN VEGAS. SECTION II

PLUS: RICKY LAUREN’S HAMPTONS. PAGE 10

SURROUNDING THE CUSTOMER Macy’s Sets Tech Push To Propel Growth

By DAVID MOIN

CINCINNATI — Macy’s wants to be with its customers everywhere they go. WWD Behind the scenes, the retailer is cooking up new technologies aimed at “melding our stores, the Internet and mobile devices so we can surround our customers MONDAY, MAY 21, 2012 Q WOMEN’S WEAR DAILY Q $3.00 at every turn,” Terry J. Lundgren, Macy’s Inc. chairman, president and chief executive officer, said at the retailer’s annual meeting Friday at headquarters here. With about 250 shareholders present, Lundgren laid out the technology vision, citing several projects in the works. “In the coming months, expect to see a wide range of new technologies tested so we can see what works best,” Lundgren told shareholders. He also outlined initiatives to sell Millennials more aggressively, further the My Macy’s program breaking the chain down to 69 districts to tailor the merchandise at individual stores, and to advance the Magic Selling program, which better connects sales associates with shoppers. The meeting was a celebration of the strong recent results at the $27 billion department store, with Lundgren stating that “the customer is voting with us,” and later telling reporters that Macy’s is outperforming competitors and picking up market share, particularly from J.C. Penney Co. Inc., which is reinventing and in an upheaval (see story, page 7). He said consumers appear to be back spending the way they did prereces- sion, at least at Macy’s. But the most intriguing message was about new technology, including handheld devices for associates in women’s shoes, among the hottest selling departments, Step Sisters to easily identify what’s in stock, retrieve merchandise from the stockroom and ring up a sale without ever leaving a customer’s side. First, heels got all the SEE PAGE 8 attention — the higher, crazier, more extreme, the better. Now The New Consumer Power sneakers, particularly high-tops, are getting the tony, tricked- By JOELLE DIDERICH and KATYA FOREMAN out treatment. Today, on pages 4 and 5, WWD looks at new PARIS — The customer is king. That retail mantra has never been more true than in the takes on the original trend, and age of the Internet as shoppers — many of them wielding on Tuesday, how designers are smartphones — are forcing retailers to play by their rules, bringing sportif to extremes. Here, delegates at last week’s Global Department Store Summit in Paris heard. Giuseppe Zanotti’s studded “Many of us have been raised on something called cus- suede sneaker and Christian tomer relationship management. Well, it’s over: The cus- Louboutin’s crepe satin bootie tomer is now managing us,” Alannah Weston, creative director of Selfridges, said in her address. “She can switch in a circuit board print. on or off the whole time. Just because she’s standing in your handbag department doesn’t mean she isn’t paying her money to someone in another city that has them in another color at a better price.” A total of 380 delegates from 201 companies gathered at the Pompidou Center for the conference, organized by the Intercontinental Group of Department Stores (IGDS) and French department store chain Printemps. “The change we are experiencing with consumers today is of the magnitude of printing with Gutenberg in the 15th century,” said Philip Shearer, chief executive officer of the Paris-based Clarins Group. Michael Dart, senior partner at management consulting firm Kurt Salmon and co-author of “The New Rules of Retail,” described it as one of the most dramatic shifts in the industry’s history. “We think that 50 percent of all brands and retailers will disappear,” he said. “The competitive congestion in trying to reach the consumer is immense now.” Though operating in vastly different markets — from recession-hit Europe to high-growth emerging econo- mies — the retailers in attendance agreed that an omni- channel strategy was key in dealing with this new market reality. “We’re probably the baby in terms of developing PHOTO BY JOHN AQUINO; STYLED BY ROXANNE ROBINSON-ESCRIOUT

CAITLIN BROWN; HUDSON JEANS AND HAPPY SOCKS TIGHTS ASSISTANT: MODELS; FASHION MODELS: BAILEY AND ALEXANDRA, BOTH WITH PARTS SEE PAGE 8 2 WWD MONDAY, MAY 21, 2012 WWD.COM Facebook Drags Down Fashion, Retail THE BRIEFING BOX pan and into the fire” moment. The By EVAN CLARK intense buildup to the offering is IN TODAY’S WWD over, but the scrutiny and second NEW YORK — Rather than guessing that all public companies igniting a new market boom, enjoy is just beginning. A few fash- Facebook Inc.’s much-touted ini- ion industry titans weighed in with tial public offering fizzled Friday, some advice on how Zuckerberg leaving investors right where might handle all the new attention. they were before the hubbub — “To Mark Zuckerberg: mired in worries over Europe’s Congratulations, well done!” said economy and political morass. Leonard Lauder, chairman emeri- Shares of the social media com- tus of the Estée Lauder Cos. Inc. pany closed up just 23 cents to “Just remember: When looking at all $38.23 — having risen to as high as STEVE EICHNER the other people in your space that $45 in midday trading. That gives Donna Karan and nothing stays golden forever. Start the company a market capitaliza- Leonard Lauder thinking about tomorrow today.” PHOTO BY tion of $105.63 billion. There were Michael Kors added, “Don’t hopes that a rising Facebook would Running countertrend were pay attention to fashion naysay- help other new economy compa- three companies that weighed ers, Mr. Zuckerberg! I wore black nies, but shares of Amazon.com Inc. in with first-quarter results. crewnecks, black jackets and fell 2.1 percent to $213.85 and eBay Shares of Pacific Sunwear of jeans before my IPO and I con- Christian Cota at the El STEVE EICHNER Inc. sank 1.7 percent to $38.36. California Inc. gained 9.3 percent tinue to do so after. It’s your tal- Museo del Barrio gala. The S&P Retail Index de- to $1.29 after its losses narrowed; ent, vision and performance that PHOTO BY clined 0.6 percent, or 3.58 points, Aéropostale Inc. rose 4.4 percent people are interested in.” to 590.78 as the Dow Jones to $18.49 despite a 34.5 percent Donna Karan had a slightly Macy’s Inc. is cooking up new technologies geared toward Industrial Average declined profit drop, and Ann Inc. rose 3.2 different take: “He doesn’t need being with its customers everywhere they go. PAGE 1 0.6 percent, or 73.11 points, to percent to $26.68 after topping our advice — he should advise 12,369.38. European markets also analyst earnings expectations. us. Really, though, there are so The mantra “the customer is king: has never been more declined, with London’s FTSE For Facebook chief executive many things that need help in this true than in the age of the Internet as shoppers are forcing 100 leading the way down with a officer Mark Zuckerberg, the IPO world, and he can help, and help retailers to play by their rules. PAGE 1 drop of 1.3 percent to 5,267.62. might well be an “out of the frying us, make the big changes.” Jewelry brands exhibiting at JCK in Las Vegas aren’t looking to reinvent the wheel. PAGE 6 Analysts Weigh In on Wal-Mart Corruption Probe Marks & Spencer, the British public’s go-to retailer, will pany and it’s doing well. If it turns transparency, and its recent posi- unveil its first major, multibrand beauty offer this week in- BY SHARON EDELSON out there was a series of these tive performance is the top story.” store and online. PAGE 7 kinds of payoffs in Mexico, China, “We believe the recent develop- WAL-MART STORES INC. might England and every other country ments underscore the interests of Ron Johnson, chief executive officer of J.C. Penney Co. be dealing with a potential legal they do business in, it could go a Wal-Mart’s long-term sharehold- Inc., told shareholders that the company would be “in the nightmare over bribery allega- little further. That may mean the ers in asserting the company’s wilderness” for about a year as it reinvents. PAGE 7 tions at its Mexican subsidiary, but fines will be a little deeper and legal rights,” said Michael Sicilia, analysts and observers seem to be they will be more likely to get rid a spokesman for the California Adding to a long list of specialty store spin-off giving it a pass — at least for now. of some senior managers. I don’t State Teachers Retirement System, casualties, American Eagle Outfitters Inc. Friday pulled The world’s largest re- think it will impact their business. which holds more than 5.3 million the plug on its 77kids children’s retail concept. PAGE 7 tailer admitted in a filing with It will it make it more problem- Wal-Mart shares and has filed a de- the Securities and Exchange atic if they want to open stores in, rivative lawsuit against the retailer. Both the great and the aspiring-to-be turned out Commission last Thursday that it say, Argentina, because they’ll be “There’s been wrongful conduct, Thursday night at the 65th annual Cannes Film Festival was widening its internal probe under a microscope.” and if it’s found that those individu- for the Women in Film party. PAGE 9 into potential violations of the A partner at a law firm that als, and, in fact, the company direc- Foreign Corrupt Practices Act, specializes in defending firms in- tors and executives were involved, Scott Schuman, founder of The Sartorialist, discusses hinting it may be looking at its volved in large-scale investigations that would uphold our claims. Our his views on the media industry and other topics in the practices in other countries as in connection with the Foreign concern in our suit is not so much June issue of GQ. PAGE 9 well as in Mexico. Wal-Mart did not Corrupt Practices Act, who also the activity, which is egregious, but provide details, and analysts re- spoke anonymously, said the concealing the information when it The Duke and Duchess of Cambridge were among the mained more focused on its stron- spread of corruption within an in- first came to light.” British royals who gathered for Queen Elizabeth II’s lunch ger-than-expected first-quarter re- ternational organization “depends At Wal-Mart’s annual meeting for sovereign monarchs Friday afternoon. PAGE 11 sults than the bribery allegations. on whether the bad actors are on June 1, CalSTRS intends to Wal-Mart shares on Friday located in one subsidiary in one withhold votes from directors it Loft powered Ann Inc. in the first quarter, helping the closed up 14 cents to $62.57 on country. Do the corporate heads believes “breached their fiducia- company weather declines at Ann Taylor, which is moving the New York Stock Exchange. have the right business practices? ry responsibilities,” Sicilia said. away from price promotions. PAGE 11 “In terms of the relative im- If not, they’re likely to have prob- The attorney said there’s no pact, the way you do business in a lems in multiple countries. ceiling on fines for violations under lot of these countries is not bribes “There are a lot of countries the Foreign Corrupt Practices Act. ON WWD.COM as we would classify them, but where corruption is an issue,” “The maximum statutory penalty is you do have to pay middlemen,” he added. “One tool a lot of firms twice the gross gain derived from EYE: The annual El Museo del Barrio gala in Manhattan said Steve Kernkraut, a retail an- use to assess levels of corruption the offense,” he said. “Whatever marked what some guests referred to as “the end of alyst at Durban Capital’s Berman is Transparency International’s benefit the company obtained, the gala season.” For more photos, see WWD.com/eye. Capital. “It’s not so surprising Corruption Perceptions Index.” criminal penalty would be twice that they did this in Mexico.” On a scale of 0 to 10, where 0 is the that, and the SEC can impose civil If senior executives were most corrupt and 10 is the cleanest, statutory penalties, but those aren’t CLARIFICATION found guilty of the alleged crimes the 2011 index listed Nicaragua, typically so big. What gets big on the A Memo Pad item on page 9, Friday, reported ad sales at and had to resign, it wouldn’t be 2.5; Guatemala, 2.7; Mexico, 3; civil side is disgorgement of profits. T: The New York Times Style Magazine are flat year-to-year; so disruptive because “Wal-Mart India, 3.1, and China, 3.6. A company can end up paying as it is in fact ad pages that are flat. usually has a deep management “Thanks to social media and the much as three times the benefit it bench,” he added. “The vice Internet, memories are short — sto- obtained through the bribery.” chairman, Eduardo Castro-Wright ries hit hard, but they also go away The largest penalty ever as- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. [who oversaw the Mexico unit at fast,” said Carol Spieckerman, sessed in a Foreign Corrupt WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. one stage], is scheduled to retire president of Newmarketbuilders. Practices Act case was in 2008 COPYRIGHT ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. over the next two months anyway. “Therefore, it is in Wal-Mart’s best when Siemens AG paid $850 mil- VOLUME 203, NO. 105. MONDAY, MAY 21, 2012. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, October and December, and two additional issues in February, Could he be the scapegoat? There interest to do whatever it can to lion in combined penalties to set- March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine may be a sacrificial lamb.” ensure that the story does not get tle a wide-ranging investigation Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Kernkraut said the bottom line protracted. Fortunately, Wal-Mart by the U.S. Department of Justice Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at is that Wal-Mart is “a huge com- appears to be committed to full and the SEC. New York, NY, and at additional mailing offices. Canada Post Publications Mail 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: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P. O . Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, Rick Paterno Resigns From Jones Group call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on RICK PATERNO, group presi- ing legacy will be the exceptional sible for Nine West, Bandolino, all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all dent of footwear at The Jones group of talent he developed, Enzo Angiolini, Circa Joan & editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For all request for reprints Group Inc., has resigned his post. who will continue to support our David, AK Anne Klein, Boutique of articles please contact The YGS Group at [email protected], or call 800-501-9571. Visit us online at Richard Dickson, president footwear portfolio.” 9 and Easy Spirit. Before joining www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that and chief executive officer of Paterno, whose successor has Jones, he was president and ceo of we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at branded businesses at Jones, told not been named, was appointed The Rockport Co., and earlier was P. O . Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED WWD, “Rick is a respected force group president in 2010. He joined president of Easy Spirit. ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER in the shoe industry and made a the Nine West Group at Jones in Paterno was traveling and un- UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR significant impact at The Jones 2008 as president of wholesale available for comment. DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A Group. Perhaps his most endur- better footwear brands, respon- — LISA LOCKWOOD SELF-ADDRESSED STAMPED ENVELOPE. 8 days of Persol Day 1: Inspiration

Dimitri Coste - Director

PO649 persol.com 4 WWD MONDAY, MAY 21, 2012 WACKY FEET PHOTOGRAPHED BY JOHN AQUINO; STYLED BY ROXANNE ROBINSON-ESCRIOUT

FOR MORE PHOTOS, SEE WWD.com/ accessories-news. BROWN CAITLIN ASSISTANT: FASHION MODEL; PARTS WITH BOTH ALEXANDRA,

AND Daniele Michetti’s calf, python, suede and Louis Vuitton’s ostrich leather and Miu Miu’s lizard, suede and satin Dolce & Gabbana’s lambskin, metal pump. Philippe Matignon tights. rayon platform. Philippe BAILEY calf leather pump. Hue tights. bootie. Hue tights. MODELS: WWD MONDAY, MAY 21, 2012 5 WWD.COM

The party never ends for festive footwear. equestrian-inspired wedge is one of the far-fetched shoes By now, over-the-top, fanciful shoes are no longer a trend. pictured here. “It’s a real pleasure to design pieces like They’re a market unto themselves — one that does not that,” says Weller. “I love that in a difﬁcult economy, people seem to be diminishing anytime soon. That’s just ﬁne by still buy into it. They want something that’s new and unique Atalanta Weller, the British designer whose tribal-esque, and they’re prepared to invest in it.” — JESSICA IREDALE

goatskin, silk and Nicholas Kirkwood for Erdem’s silk brocade Alexander McQueen’s leather and ostrich Atalanta Weller’s calf leather wedge. Matignon tights. bootie with acrylic heel. Hue tights. feather boot. Isaac Mizrahi tights. Fogal leggings. 6 WWD monday, may 21, 2012

For more Images, see WWD.com/ accessories accessories-news.

A necklace from Temple St. Clair’s Counting on Color at JCK owl collection. cycle in amethyst and different priced between $1,000 and collection ing trends By ALEXANDRA STEIGRAD topaz gems for spring. For fall, $4,000. called Gilded isn’t the however, the brand is sticking to LeVian will also bring a Cage, a play on brand’s focus. Do whAT you kNo w. black and gold tones. three-tiered bridal collec- words that re- Instead, the Jewelry brands straddling LeVian, which carries a tion that includes fashion jew- fers to America’s jewelry brand is the fine and fashion categories range of jewelry from fashion to elry, chocolate diamonds and Gilded Age. concentrating on are sticking to the classics, but couture, has relied on branding natural color diamonds mixed “I realized the further growth with adding a twist to update their to attract new consumers. with platinum and 18-karat luxury fine jewelry the addition of la-

signature pieces. known for its use of less ex- gold. Retailing from $800 up market was missing dies’ watches — a new Be it sprinkling in a hint of pensive brown diamonds, which to $250,000, the collection has a fresh, young design category for the brand color with gold alloys and vi- it refers to as chocolate dia- something for every budget. approach to important — that will hit stores late brant semiprecious stones, or monds, as well as newly devel- “Ever since the great reces- jewelry. That’s where 2012 or early 2013. expanding their offerings to in- oped gold alloys such as straw- sion, consumers have changed my jewelry line’s Temple St. Clair is also clude higher-priced collections berry gold or honey gold, the their buying habits. when they vision of ‘Rock blazing its own trail

in 18-karat yellow gold, white brand has been able to leverage buy something, they buy fewer Tradition’ plays with a higher- diamonds and emeralds, brands the power of the “new” materi- items but better value items,” a vital role — it’s priced line that is exhibiting at JCk from June 1 to als into sales by branding them, he said, adding that LeVian has a modern twist a return, of sorts, 4 at the Mandalay Bay Resort & ceo Eddie LeVian said. been able to maintain and even on jewelry’s to the brand’s Casino in Las Vegas aren’t look- “Fine jewelry is raise prices. most impor- roots. The col- ing to reinvent the wheel. changing. Brands Next up for the brand is a tant classics,” lection, which “we’re living in such uncer- ’’ spring collection comprising Trump told designer Temple tain times,” said hellmuth chief A black and white pastel and candy-colored jew- wwD. “I want to St. Clair Carr executive officer and designer diamond ring elry, as well as honey gold and make the women called “whimsi- Gert hellmuth. “People want from Hellmuth. strawberry gold pieces. of my time feel cal,” intertwines to spend the dollars they have “Color is huge right now, but comfortable buy- owl imagery and smartly and safely. The consumer it doesn’t just mean gemstones. ing fine jewelry.” delicate latticework appreciates gold and diamonds It means colored diamonds, col- Perhaps the most in 18-karat gold with now more than ever.” ored gold,” he offered. “women surprising collection garnets and moonstone. As a result, brands like don’t want to be trading in the from Trump is Laotong, an It retails from $500 for a hellmuth are increasing- sea of sameness. They want African emerald-based line small gold owl pendant up to ly looking to the upscale their jewelry to be signature.” that marks the brand’s first $40,000 for a linked, multistone consumer to offset somewhat Signature is all about brand foray into color. garnet necklace. decelerating sales at the lower identification, and brand iden- “I was inspired by last “we are finding within our end of their offering. tification is about having a year’s movie ‘Snow Flower collection, there is a demand According to hellmuth, strong message. and the Secret Fan,’ which my for finer and finer colored whose prices range from $250 close friend wendi Murdoch gems. I use diamonds here and to $70,000, business is up 25 per- produced. The Chinese word there as an accent, as I have al- cent over last year, and, ironi- Laotong represents the life- ways done,” the designer said. cally, it’s due to incorporating time bond between two female “overall, I am actually using more luxe materials. Women don’t want to be trading friends as kindred sisters,” fewer diamonds these days “you’re not losing your Trump said. “I had been want- and have been going back to money when whatever you buy in the sea of sameness. They want ing to introduce color for some my roots of using more intri- today has gold, silver, diamonds time, and the combination of cate gold work and detail. I find or colored stones,” he said, ex- their jewelry to be signature. the radiant green color of an creativity and craftsmanship in plaining that high commodity emerald and the elegance gold much more intriguing than prices can be counterbalanced — EddiE LEVian, LEVian of the fan provided the merely adding diamonds.” with creative designs. perfect theme.” According to St. Clair Carr, In his collections, which in- “Ivanka first men- consumers are flocking to yel- fuse texture through crocodile tioned adding em- low gold because it signals value. and snake patterns on gold and that deliver a certain image are eralds to the collec- other designers agreed, adding silver, hellmuth is able to con- more favored by the consumer,” tion about two years that shoppers are opting for the trol costs by mixing metals and LeVian explained. “For many ago. My first reaction yellow metal over white gold and by altering the size of its pre- years, manufacturers couldn’t was, I love the coher- even platinum because the look cious stones or swapping them sell brown diamonds, but our ence to our black and of gold symbolizes a higher worth. out for semiprecious gems. positioning and marketing of white story. It puts us while the average price point In Belargo’s case, the brand them as chocolate diamonds in a unique place in for Temple St. Clair hovers relies on cubic zirconia, sil- has created a demand.” the marketplace,” said around $3,500, the designer said ver, rhodium and 14-karat gold As a result, LeVian will be Andrea hansen, the she is seeing an emerging sweet vermeil to keep prices afford- bringing several new lines to brand’s ceo. “I wanted spot between $5,000 and $15,000, able. with prices starting at JCk, including a brown dia- to make sure that when with bespoke pieces priced $100, Belargo designer Freida mond collection that retails we introduced color that above $50,000 selling out quickly. Rothman said prices “must be for between $500 and $900, a ’’ we could do it with historical In fact, dramatic sales under $1,200. fire opal-based collection for reference…and not change the growth this year is directly “As soon as I use diamonds, between $1,000 and $5,000 brand’s message.” linked to robust sales at the I’ll be out of that price point,” and a colored diamond col- while the collections large- very high end of the brand’s she said, but added that she will lection, dubbed mixed berry, ly remain consistent with the price range. Although St. Diamond brand’s retail sweet spot Clair Carr would not and emerald of between $3,000 and reveal sales fig- Cuffs from earrings from Belargo. $16,000, Laotong ures, she said Ivanka Trump. pushed the limits her brand has somewhat, coming in shown “healthy with that in mind, Ivanka at $5,000 to $80,000. double-digit Trump has developed several According to growth” for the collections that add a modern- hansen, the brand last two years. ized spin to her traditionally has been able to But this growth monochromatic jewelry. keep prices rela- isn’t brand-spe- Trump, whose jewelry is tively low for this cific. For those inspired by looks from the couture capsule col- with the ability Twenties, Thirties and Forties, lection, because it does to up their prices will launch three new collec- its own production in a and value equa- tions that nod to looks from the factory in New york. tion, there’s a vo- late 19th century. “we definitely see A ring from LeVian’s racious consumer The first collection, called activity at the high end mixed berry collection. ready to spend. Belle Epoque, is evocative of of the market. That’s “Consumers the jewelry of Paris in the 1890s. why I felt comfortable with the are trending towards the very This includes modern takes emerald collection being lim- fine and are willing to invest in on the bow design, as well as a ited edition,” hansen said, add- these [higher-priced] pieces,” white-on-white color scheme. ing that the brand may cycle in St. Clair Carr noted. “we are Trump is also launching an some color coral hues in upcom- experiencing this over and over Art Deco-inspired fine jewelry ing collections, but that follow- again in a variety of markets.”

w21a006a.indd 6 5/18/12 5:56 PM 05182012175810 WWD MONDAY, MAY 21, 2012 7 WWD.COM Johnson Talks Challenges At J.C. Penney Meeting that the stock fell significantly over By HOLLY HABER the last five years, and dividends were suspended even as the company PLANO, Tex. — J.C. Penney Co. Inc. doled out a hefty severance to former is going to be “in the wilderness” for ceo Myron E. “Mike” Ullman 3rd, who about a year as it reinvents its iden- received total compensation of $34.6 tity in a bid to capture market share, million last year, including stock and chief executive officer Ron Johnson option awards. told shareholders at the company’s “What did you learn from him annual meeting here Friday. that was worth $40-plus million?” the “We are in the middle of a very im- shareholder asked. portant and a very challenging year “Mike did an extraordinary job of of transformation,” he told the small educating me on the company and audience at company headquarters. introducing me to people around the “It is not easy. It’s been a really hard world,” Johnson replied. “We trav- time for all of us here.” eled together to Europe, to Asia, to Certainly Johnson is the first ceo New York multiple times. He walked in Penney history to appear before me through exactly how this compa- shareholders in a checked shirt and ny works sitting through the various gray jeans, and his relaxed style indi- committee meetings and the process cates yet another era for the 110-year- that we use. And I found that actually old retailer, which has seen its shares quite invaluable.” A rendering of the new M&S concept. pummeled after reporting a $163 mil- Regarding the elimination of the lion loss for the first quarter. firm’s quarterly dividend, Johnson The retail maverick still talked acknowledged it was a “very difficult BEAUTY BEAT heritage, framing the company’s decision for shareholders,” but he in- fledgling everyday pricing as a re- sisted it was the right move. turn to founder James Cash Penney’s “We really believe we have a lot of insistence on charging the “right ways to use our capital to provide ex- price.” “We moved through a pe- traordinary growth for this company,” Marks & Spencer Unveiling riod where we marked our prod- he said. “We’re excited about seeing ucts up only to mark them down and appreciation of the stock price, and sell them at a perceived discount,” you can hold me and my team ac- Multibrand Beauty Offering Johnson explained in a quick review countable for that.” of company history. Penney has only about 3 percent The store plans to stock 25 to 30 inde- “It’s a really popular thing with a of market share, Johnson said, so By SAMANTHA CONTI pendent brands — many of them exclusives lot of our competitors but, from my it has to break through to the 97 — from outside the U.K., including Perlier perspective and that of our leader- percent who don’t think of the re- LONDON — Biscuits, bras, baby clothes — and I Coloniali from Italy; Skyn Iceland; ship team, this was not a great era for tailer first. and now beauty. Nuxe, Roger & Gallet and Fragonard from our company,” he said. “We had mas- “We’re rethinking everything,” he Marks & Spencer, the British public’s France; and Dr. Murad and Pür Minerals sive losses in market share, we kind noted. “From a marketing perspec- go-to retailer for merchandise ranging from the U.S. of moved into a position where there tive we’re looking at the personality from food to fashion to everyday items At launch, the company plans to have were a lot of people with similar mer- of the brand, pricing strategy, promo- for the family, will unveil its first major, nearly 1,000 stockkeeping units ranging in chandise, and during that time, espe- tional strategy, the products we carry, multibrand beauty offer this week in- price from 2.50 pounds, or $3.98, for a bot- cially the last two-thirds of that, our how we present merchandise and store and online. tle of Limited Collection nail polish, to 70 stock price did not appreciate.” ultimately the store design itself,” he The new retail concept, Your Beauty: pounds, or $111.30, for a premium skin care A Penney retiree pointed out dur- said. “For us to succeed we’ve got to The Best of Nature & Science, will make product such as Filorga, which offers antiag- ing the question-and-answer period be the best at all of these.” its debut on Tuesday at the M&S store on ing fillers, meso-therapy and face peels. The London’s Kensington High Street and on Lyn Harris fragrances cost 25 pounds, or $40. the retailer’s Web site. All figures have been calculated at cur- M&S will continue to roll out the rent exchange. concept this year and next. Some 57 re- “We are a very democratic store sell- AEO Exiting 77kids Business tail spaces are expected to open by the ing everything from knickers to cashmere end of this year, and 126 will be open by dressing gowns,” Russell said, adding that est of the company and our share- October 2013. the same philosophy would apply to the By ARNOLD J. KARR holders to prioritize and focus our Frances Russell, the store’s trading di- beauty offer. efforts on businesses with the high- rector for beauty and lingerie, said M&S M&S plans to carve out spaces ranging ADDING TO A LONG list of specialty est return potential,” said Robert is also looking at an international rollout, from 750 square feet to 3,000 square feet store spin-off casualties, American Hanson, who joined American Eagle most likely in the late summer or early fall, across its 300 department stores in the U.K. Eagle Outfitters Inc. Friday pulled as chief executive officer in January in tandem with its existing franchise part- The average size will be 1,200 to 1,800 the plug on its four-year-old 77kids from Levi Strauss & Co. “We thank ners. The first ones will open at the M&S square feet, and most of the new beauty children’s retail concept. the 77kids team for their hard work, flagship in Czech Republic and Poland. spaces will be adjacent to the stores’ linge- American Eagle plans to explore passion and dedication.” In an exclusive interview with WWD, she rie areas. The smaller stores will carry the other options for the business, in- A spokeswoman said American said the store is aiming “to offer the very M&S in-house products only. cluding a full or partial sale to a third Eagle is seeking other positions for best of nature and science,” across all the The shop fit, an M&S spokeswoman party. The company, which is sched- the 90 corporate associates and 400 major beauty categories, as well as “foreign said, would be “bright and clean, inspiring uled to report first-quarter results field personnel employed at 77kids. brands not widely available in the U.K.” and calm,” with natural wood, illuminated Wednesday, expects to The brand joins a “We want to help women reveal their display panels and interactive materials take charges to reflect long list of specialty natural glamour, and to earn their trust meant to enhance the shopping experience. the discontinuation of store spin-offs that with our honesty and expertise. We want to Russell pointed out that M&S boasts the business primarily were unable to be sus- be a new face in beauty,” she said, adding 27 percent of the lingerie market in the during the third and tained by their parent that the focus for the concept would be ser- U.K., and while she declined to give any fourth quarters. 22 firms. While Gap Inc. vice, product and the environment. investment figures or projections for the The company said saw Old Navy grow into The store, which worked with con- nascent beauty business, she said the store 77kids, which has 22 NUMBER OF 77KIDS its largest business and sultants including Patrick Bousquet- has high hopes of building serious market stores and an online STORES IN OPERATION. Abercrombie & Fitch Chavanne, former group president of the share in beauty. business at 77kids. and J. Crew continue to Estée Lauder Cos. Inc., said it plans to hire “The beauty market is worth billions, com, racked up after- operate their Hollister some 500 to 600 “beauty advisers” who will and we can find our own place in it,” she tax losses of $24 million on sales of and Madewell operations, respec- undergo four weeks of in-house training, said, adding that the competition for M&S $40 million during fiscal 2011. Its par- tively, Abercrombie closed its high- and who will not work on commission. will range from Boots to Selfridges. “We ent had net income of $151.7 million minded Ruehl concept in 2009 after “We think we’ve found a sweet spot have 21 million customers coming through on sales of $3.16 billion last year. a five-year run, Pacific Sunwear of in the market with this kind of service. our doors every week and nine million Launched on the Internet in 2008 California shuttered its D.e.m.o. and We want them to be trusted advisers and unique visitors to the Web site every year.” with a name derived from the 1977 One Thousand Steps divisions in 2008 friends to our customers,” she said. Each new space will be divided into the founding of its parent company, and Bebe Stores Inc. extinguished its Starting next week, M&S will offer three beauty “universes” of well-being, 77kids was geared to children ages PH8 nameplate in 2010. some 14 own-brand products such as Pure performance and lifestyle. There will be two to 10 and didn’t open brick-and- AEO continues to operate its aerie Skincare, an eco-friendly body care range; screens where customers can upload pho- mortar stores until 2010. Martin + intimates subbrand. Limited and Autograph Collection makeup, tos of themselves in order to test out make- Osa, a contemporary offshoot geared Separately on Friday, AEO said and Natures Extracts, an everyday range of up virtually, and about 30 how-to videos on to a more adult audience than the chief financial officer Joan Hilson bath and body products. makeup and skin care. youth-oriented American Eagle is leaving the firm. Scott Hurd, vice The company has also collaborated with There will also be special makeover, skin brand, was closed in 2010, also after president and controller, will serve Lyn Harris on six fragrances for men and care and nail sessions at the stores, although a four-year run. as principal financial and account- women and with Cowley Manor, the English Russell specified that M&S had no plans to “Although making this decision is ing officer on an interim basis until a country hotel, for a collection of spa products. enter the spa and beauty treatment business. disappointing, it is in the best inter- successor is appointed.

8 WWD monday, may 21, 2012

Macy’s Stepping Up Tech Spend Catering to Today’s Consumer {Continued from page one} While Macy’s technology spend is big, {Continued from page one} function kiosks through which custom- Lundgren also cited: it’s not cutting away at the bottom line, omni-channel,” said Datuk Alfred Cheng, ers can access their membership card n Rapidly rolling out new ways to reach according to officials. Nordstrom’s bot- group managing director of Malaysia’s details, as well as the Saks FashionFix customers with special offers delivered to tom line last quarter did suffer due to Parkson Retail Group, which celebrates flash-sale site, among other features, their mobile devices through Facebook, stepped-up technology spending and hir- its 25th anniversary’’ this year. Wallstrom told WWD. Google and other sites, and directly via ing, though the investment should pay off The department store chain, which Westfield Group, meanwhile, is pio- text message. with increased top-line performance in also operates in China, Indonesia and neering a mall model that blends fash- n A “new generation of price checkers” the future. Vietnam, is due to launch an “omni- ion, food and entertainment. Its co-ceo on the selling floor with suggestive selling At Macy’s, “We’ve reallocated more channel platform” at the end of May, Steven Lowy predicted the Westfield capability. of our cap budget for technology. It’s and though Cheng expects it to gener- Stratford City mall near London, which n Digital displays extending assortments been the trend for the last few years,” ate just 3 percent of total sales by the opened last September, would draw 30 in places where selling space is limited. Lundgren said. Fulfillment centers and end of the first year, he sees it as key to million to 40 million visitors and record n Using tablets on the sales floor, partic- systems take the biggest chunk out of the brand communication. sales of 1 billion pounds, or $1.6 billion at ularly in jewelry, so associates can make cap-ex budget, set at $850 million this “We believe it’s an area that will current exchange, in its first year. faster transactions without the need to fre- year and $900 million next year. Macy’s contribute significantly to our growth,” “It has been a great success, and quently open and lock up jewelry cases. recently completed a 1.3 million-square- he said, adding that Parkson has set its one we plan to roll out with other n Digitally driven virtual mannequins foot, state-of-the art fulfillment center in sights on expanding to four more coun- major malls in the world,” said Lowy. that change outfits to suit different West Virginia. “When they poured in the tries in the next five years — with India, Westfield plans to unveil the retail crowds and weather patterns. If a snow- concrete, they had to take in the curva- Pakistan, Bangladesh, the Philippines portion of the World Trade Center in storm rolls in, the mannequin dons a ture of the earth,” Lundgren said. and Myanmar high on its wish list. New York in 2015, and open another down jacket and boots, for example. “The next phase is in-store technol- mall near Milan’s Linate Airport in 2016. Shoppers may also change what the man- ogy,” Lundgren stated. Stores are also pulling out the stops to

nequin wears. During his speech to sharehold- create memorable experiences. “The bottom line is that you can expect ers, Lundgren stressed that technology We think that 50 Paul Delaoutre, ceo of Galeries Macy’s to be a technology leader to im- plays the biggest part in targeting 13- Lafayette, said it hosts contemporary prove the shopping experience in-store, to 30-year-olds, known as Millennials. percent of all brands art exhibitions at the gallery inside its online and via mobile,” Lundgren said. According to Lundgren’s statistics, in Boulevard Haussmann flagship four

Macy’s already has invested heavily in the U.S., Millennials spend $60 billion and retailers will times a year, and plans to open a foun- technology. It has mobile shopping apps annually on the type of products sold at dation for contemporary art in central for Macy’s and Bloomingdale’s, and apps Macy’s, but he added, “I don’t think de- Paris in two years’ time. for tablets. The store sends text alerts, partment stores have been getting their disappear. “The gallery inside the store came and has the M blog, which invites con- share. It’s a fickle customer.…In the com- from the idea that we cannot just be versation from consumers. It also distrib- ing seasons, you will see a whole new — Michael Dart, merchants, that our brand should also utes coupons to mobile phones and has merchandising assortment directed at Kurt SalMon have a dimension of generosity and that a search-and-send capability enabling specific Millennial segments. we should share’’ our vision of art with stores to find and ship merchandise from “We’re also looking at new ways to At the opposite end of the spectrum, our customers,” he said. other stores in the chain. With the help staff fitting rooms in Impulse and mstyle- British retailer John Lewis was cited as a In October, Galeries Lafayette will of associates trained in search and send, lab, and we are working on marketing model for its omni-channel approach, which celebrate the 100th anniversary of the customers last year ordered more than 7 programs that will help us build better earned it the 2010 award for Best Online flagship’s cupola. The whole store will million items from a register at a store relationships with college students and Retailer from Which?, a British product- be covered in what Delaoutre described and the item was shipped from the online twentysomethings. We will experiment testing and consumer campaigning charity. as “probably the largest piece of art inventory or from another store rigged for with department environment, sizes and Andy Street, managing director of made of light in the world,” designed by shipping. “Search and send has been a big adjacencies.” John Lewis, said its Web site now featured Ya n n Kersalé, who has a six-year con- payoff for us,” Lundgren said. 210,000 stockkeeping units and would ac- tract “and complete freedom to do what he wants on our walls.” Currently, Macy’s has 150 stores rigged Terry J. count for 23 percent of total sales in 2012, Selfridges’ Weston said the notion of for shipping and will have 292 by the end Lundgren putting the retailer in a better position of the year. Macy’s has also just begun than its competitors to face Britain’s sec- being a culture center was not new for store-to-customer shipping to fill orders ond recession since 2009. Sales at John department stores, but was becoming generated online. Macy’s doesn’t have to Lewis are up 13 percent’’ since Feb. 1, the more important in the Internet age. take down a Web page if the online inven- start of the financial year. tory on an item runs out, since the goods “It’s been a cracking start, and I’d be can be obtained from stores, not just from disappointed if we didn’t finish the year online inventory. in 6 to 7 percent territory, which — given Today’s customer Though its reputation for omni-chan- the economy is going to be flat — obvi- nel technologies is not as advanced as ously means we’ll be winning substantial will happily tell us some competitors’, such as Nordstrom market share,” Street told WWD on the Inc., Macy’s is fast improving. The com- sidelines of the summit. where they live, their pany is in a position to spend, coming off Customers can have their purchas- two years of robust sales growth: 4.6 per- es delivered at home, or collect them cent in 2010 and 5.3 percent in 2011. from one of 35 John Lewis stores and measurements and Much of the new technology Macy’s is 194 Waitrose supermarkets nation- Aquino developing will be tested and seen at the wide, with Street noting that the “click what they had for Herald Square flagship, as it undergoes a and collect” option accounts for a four-year, $400 million overhaul. Herald quarter of all online orders. breakfast if they get Square could see the handheld devices Photo John Indeed, retailers noted high levels of for shoe associates, enabling them to sig- In other news, Lundgren said Macy’s service were key across all channels. something in return. nal the stockroom to rush out different is developing additional private labels, Printemps chairman and ceo Paolo styles and sizes, display alternative styles which currently account for 20 percent De Cesare said the store, which in recent —alannah WeSton, to customers and conduct transactions. of total sales. He cited American Rag and years has undergone a major facelift, de- In addition, Macy’s has just begun dis- Material Girl from Madonna as resonat- rives 55 percent of sales from the top 15 SelfriDgeS tributing tablets to jewelry department ing with younger shoppers. Other key percent of its customers. associates. In a press conference after in-house brands are INC, Charter Club, “We have changed completely our ap- “I believe there is always a trend and the annual meeting, Lundgren said the Alfani and Tools of the Trade. proach to personnel and selling. We have a countertrend. So, for everything that I tablets will be seen in most stores by the On the international front, overseas hired over 100 people, and now about buy with my mouse, I’m going to want a end of this year, but have limited applica- developers are all over Macy’s, eager 15 percent of our store personnel are richer experience in a store,” she said. tion to other merchandise areas. to get the company to open Macy’s and service-oriented,” he said, adding this In her presentation, “The Future of He also spoke of transforming some Bloomingdale’s outside the U.S. So far, ranged from basic orientation to private Retail,” Weston noted that the new custom- stores to “showcases” where products are Macy’s Inc. has only one international personal shopper spaces for VIP clients. er is one who loves to share. “Convenience displayed and sold, but not there for tak- store, Bloomingdale’s in Dubai, though Tsutomu Okuda, chairman and ceo is more important to them than privacy. ing home. The products would be shipped Macy’s does distribute a small volume of J. Front Retailing Co. Ltd., which op- Today’s customer will happily tell us from warehouses or other stores, enabling of merchandise to about 100 primarily erates the Daimaru and Matsuzakaya where they live, their measurements and the showcase store to carry less inventory English-speaking countries. department store chains in Japan, noted what they had for breakfast if they get but display a very wide range. Asked if Sears unloading units in that its “Gaisho” service — whereby sales something in return. In many ways it’s a re- Lundgren also said, “I believe there Canada could present an opportunity, associates bring a selection of products turn to the intimacy we had with the small are opportunities with technology to sell Lundgren replied, “It could.” But he to a customer’s home — generated 21 shops in the 19th century,” she explained. products we don’t show in the stores,” po- added, “You’ve got to look at a big pic- percent of total sales. Weston concluded that’’ bespoke of- tentially opening up new category oppor- ture strategy” before considering stores Even customers at off-price retailers fers — whether it be the chance for tunities for Macy’s. here and there. Nordstrom is also eyeing are demanding high levels of service. shoppers to customize their sneak- The retailer’s omni-channel technolo- Canada, and may be considering some Robert Wallstrom, president of Saks Off ers, have a suit made from scratch or gy development is spearheaded by a team Sears locations there. 5th, was surprised to discover that for Mother’s Day makeup applied in the supervised by Peter Sachse, chief stores On May 22, Macy’s officially launches 46 percent of his customers, it was the cosmetics hall — are the best way to be- officer, who is also responsible for omni- its Brazil promotion, though there is number-one driver of loyalty. friend customers. “Bespoke products, channel strategies. Brazilian merchandise already selling in In response, Saks Off 5th last year services, communication and experienc- During the meeting, Lundgren said the stores. Asked if import promotions are introduced a service program for sales es are the future of shopping,” she said. Macy’s has “a culture of growth” and on the agenda for the future, Lundgren associates, in addition to a merchandise At a dinner on the first day of the sum- it’s been outsized in the online channel. said, “We want to see the results for locator for its 61 stores, and in-store mit, Selfridges was named Department Online sales grew 40 percent last year; 29 Brazil.…We’re not going to commit to one price scanners. The company hopes to Store of the Year 2012, marking its second percent in 2010, and 20 percent in 2009. every year.” transform those scanners into multi- consecutive win.

w21a008a;17.indd 8 5/20/12 2:01 PM 05202012140245 HAMPTONS HIGH LIFE: A look at the Hamptons through the eyes of Ricky Lauren. WWDSTYLE PAGE 10 MEMO PAD

SCHUMAN’S PEEVES: Good old print Jury Break magazines keep getting the shaft these days. Even in their own pages. “It shocks me when young kids still say, ‘I want to do a magazine,’” Scott Schuman CANNES, France — Cannes Film Festival juror Diane Kruger stepped said, in the June issue of GQ. “Really? out in Calvin Klein Collection with Joshua Jackson at the Women in Film Do you want to do a magazine because you want to be an editor — what you party. For more on the French Riviera party circuit, see page 10. think that life is, that romance — or do you want to communicate? Because if you want to communicate, why the f--k would you put all those obstacles in your path and have to print pages, as opposed to going right on the Internet and actually communicating?” The Sartorialist founder goes on to discuss other issues, including his complicated relationship with Dolce & Gabbana. The brand seated him front row along with Garance Doré, Tommy Ton and Bryanboy, at a D&G spring runway show in 2009. At the time, the decision to move print editors from the front row for bloggers was news and represented a “paradigm-shift moment” for fashion journalism. To be fair, it was an over-the-top stunt that rightly humiliated Schuman (the bloggers were given laptops on little podiums), but it appears he’s still not over it. “They got a humongous amount of press,” Schuman said. “‘Look, we brought the bloggers in and gave them the front row. Look at the dancing- monkey bloggers!’ I could barely bring myself to sit down.” He adds, “Like, ‘Ugh, I don’t want everyone looking at us.’ Like, ‘Oh, look at the cute bloggers! Isn’t that cute! Are they playing Angry Birds?’ When you’ve got Ron Frasch behind you going, ‘I spent two f--king million dollars on D&G’s last collection, and I’m sitting here? For these little schmucks?’” Speaking of Frasch, Saks Inc. president and chief merchandising ofﬁcer, Schuman has a bone to pick. They were introduced at a party years ago, while Schuman was a stay-at-home dad. “He’s looking right over my head,” Schuman recalls, “and I remember thinking, I’m gonna make this f--king blog so he looks at me when I’m talking to him.” It appears the two men have a more cordial relationship now. In front of the GQ reporter, this exchange takes place: “Hey, Ron.” “Hey, Scott,” said Ron, politely but without slowing down. “Happy New Year, buddy,” Schuman said. — AMY WICKS

STYLE COALITION EXPANDS: Social media marketing platform Style Coalition has named Ted Nadeau president and chief operating officer. Nadeau was the former general manager of Elle Group Digital, and prior to that was senior vice president and general manager at Condé Nast Digital. Part of his responsibilities will include further development of the SC Index, an analytics toolkit providing data insights and trends for brand partners. Style Coalition has also added Shenan Reed, chief media ofﬁcer of Morpheus Media, a Createthe Group company, to its advisory board. Yuli Ziv, founder and chief executive ofﬁcer of Style Coalition, also said that the company will launch Style Coalition T V, its online video channel, next month. Earlier this year, the company inked a partnership with Hearst Digital Media to create custom, multichannel social media programs and advertising campaigns for select brands. — VICKI M. YOUNG 10 WWD MONDAY, MAY 21, 2012 FOR MORE PHOTOS, SEE

WWD.com/eye. Bérénice Bejo Honors Tour

BOTH THE great and the Jackson, who is keeping her

STEPHANE FEUGERE aspiring-to-be turned out company — as far as jury Thursday night at the 65th duty allows. annual Cannes Film Festival for “We can go see movies

PHOTOS BY the Women in Film party, which together; we can’t really talk about honored actress-of-the-moment it, which is a little weird,” she said. Shailene Woodley as well as Naomi Earlier, Woodley and Ezra Watts, Jessica Chastain, Diane Miller were honored as winners Kruger, Alec Baldwin and Ludivine of this year’s Chopard Trophy Sagnier. Ben Stiller, Chris Rock, David for promising talents. Sean Schwimmer and Jada Pinkett Smith Penn handed out the awards in — in a plunging cocktail dress the presence of Chopard co- by Paco Rabanne — were among president and creative director Eva Herzigova the guests at the event, hosted Caroline Scheufele and Variety and Gregorio by the Independent Filmmaker executive editor Steven Gaydos. Marsiaj Project, Calvin Klein Collection “I have such a fandom for and Euphoria Calvin Klein. both Shailene Woodley and Chastain, the revelation Ezra Miller, who are really kind of last year’s festival, is back of honest talents that I think with two movies: competition we’ve been waiting for for a entry “Lawless” and the while,” Penn said. animated “Madagascar 3: Guests including Eva Europe’s Most Wanted.” Herzigova, Roberta Armani, Paz Shailene Woodley, Jessica Chastain, Naomi Watts, Ludivine “It feels like coming home,” Vega, Fan Bingbing and Dolores Sagnier and Diane Kruger, all in Calvin Klein Collection. she said. Though it was an Chaplin repaired to the Chopard evening devoted to female film Lounge on the rooftop of the talent, Chastain said she has no Hotel Martinez for the party, plans to step behind the camera. which included a private “I’m a very sensitive person concert by Lana Del Rey. and I’m not very good at telling Marion Cotillard, who had people what to do, so I don’t slipped out of the Dior Haute think I would make a very good Couture gown she wore to the director. However, I would love premiere of her film “Rust & maybe someday to be a teacher” Bone” and into a Basil Soda for other actors, she explained. cocktail dress, dropped by Kruger, a member of the before heading to her own Cannes jury this year, said Nanni movie’s after party. Bérénice Bejo Moretti, the Italian director was kicking up her heels after who is presiding over the hosting the festival’s opening deliberations, had yet to confirm ceremony the previous night. his reputation for toughness. “It feels like a weight has been “Actually, he’s been pretty lifted off me,” she said. “I think cool,” she said. “I was expecting I did more or less what I set out a more strict president.” to do, because I wanted to be Alec Baldwin The German actress was quite unpretentious and not too flanked by her partner, Joshua formal.” — JOELLE DIDERICH Eastern Attitude eye RICKY LAUREN possesses a When the family grew with much more poetic take on the daughter Dylan, “I had a lot Hamptons than the usual ink of toys to accommodate,” she devoted to the sky-high real estate adds. “So we went to East prices, celebrity inhabitants and Hampton, with the sprawling snarling traffic of Long Island’s lawns and the feeling of more most desirable region. space. Then as life goes on you “I love the great expanse of look at other places and you the sea and the sky; the sounds experience other things, you of the gulls screeching overhead; look for a more private life. We the glint of the sun on the ocean liked Montauk, because it was and, at night, when there’s a full further away from everything.” moon, the path of the full moon For the book, Lauren chose across the ocean,” says Lauren, to look at the Hamptons through sitting, in a perfect gray cashmere a personalized lens, from the ensemble, at the Ralph Lauren general history of the region offices on Madison Avenue on a including its architects and recent spring day. “The wind, the artists, to the family’s own time breeze.…Everything inspires me.” spent there, including family Such was the inspiration that anecdotes, and her favorite it triggered her to work on the dishes like Sunset Organic recently released “Ricky Lauren Chicken Pot Pie, Hamptons The Hamptons Food, Family Stuffed Eggplant and Blueberry and History” (John Wiley & Sons Crisp. The recipes are Inc.). In the past four decades, straightforward with few frills, the Laurens — Ricky and Ralph, just like her family likes it. and children Andrew, David “I believe that if you’re making and Dylan — had, at separate something, it should be simple, so points, houses in Southampton, cut down all the steps,” she says. Amagansett and East Hampton. “If it can’t be made in a certain They now consider Montauk number of steps, then I don’t Ricky Lauren A country chicken chili. their home out east. want to make it. It would be too “Southampton was more complicated, especially with life share her newfound knowledge. be dressed in their snow suits placed importance on family formal, and it was a time in my on the beach. Yo u want to have In the process, readers find out as and it would be wonderful fun. traditions, such as meals together. life when we were a very young a nice life, you want to be with much about the Hamptons as they During harvest, we would pick That sentiment comes through in married couple and we had one family and friends, you want to do about the Laurens and their corn and potatoes and cook them the book, and it’s one of the things child,” she recalls. “When I had be able to entertain. Yo u can’t be appreciation of the destination the same day. Things started to she looks forward to the most my two little boys, we decided worried about too many steps and year-round. “In the wintertime, bloom in spring, and the colors this summer. She already knows to go to Amagansett. It was too much fuss.” there was a potato field that was and the cherry-blossoms were what she will serve during this perfect. Yo u would walk on the Researching the early history right behind our house, so we amazing to see. The summer was summer season in Montauk. “We streets barefoot to the beach. of the Hamptons — from its would go in a Jeep [with] a tire great because you could get fresh like beach picnics or a barbecue,” Andrew and David would play agrarian roots to its time as an tied to the back and the children blueberries and strawberries and she says, and, with a nod to her out on the street from daylight artists’ enclave and, as she puts it, would be on the tire,” she recalls. amazing seafood.” Viennese heritage, Lauren adds till dark and there was not “the American Barbizon” — was “We would circle the potato An only child of Austrian with a wink, “I love schnitzel.” much traffic.” enlightening, and she wanted to field, and the children would immigrants, Lauren always — MARC KARIMZADEH WWD monday, may 21, 2012 11 WWD.COM

On the hugo Boss DOnnA’S TRIBuTe: The marriage of Donna runway in Beijing. Karan and the late Stephan Weiss is the stuff Fashion scoops of fashion legend, and continues to inspire the designer every day. More than a decade after Weiss passed away, Karan is giving KATe In The PInK: The Duke and Duchess of A PAuL SMITh ALPhABeT: Paul Smith’s fans sIM ChI yIn photos by him and their union a suitable tribute: a Cambridge were among the British royals descended upon the designer’s Covent book celebrating Weiss, who was not just her who gathered for Queen elizabeth II’s lunch Garden boutique Friday afternoon, confidante and business partner, but also for sovereign monarchs Friday afternoon. when he made an appearance to sign an artist in his own right. “Stephan Weiss: Held in honor of the Queen’s Diamond copies of his new book, “A to Z.” The Connecting the Dots, Portrait of a Man,” which Jubilee at Windsor Castle, British royal 200-page tome takes an alphabetical will be published by Assouline this fall, will guests at the event included Prince harry, journey through Smith’s inspirations focus on, for instance, Weiss’ art, including Princesses Beatrice and eugenie and the earl and offers a glimpse into his own his sculptural work; his art of negotiation, and Countess of Wessex, along with the design process. Alongside a look at and the love he had for motorcycles and his Queen and the Duke of edinburgh. Smith’s touchstones ranging from family. It will also showcase Weiss’ lasting Kate, wearing a pale pink Emilia architecture through to Japan to legacy, which directly informs Karan’s Urban Wickstead dress with pleated skirts, zebras, the book features Smith’s own Zen Foundation. As she put it, “Behind every which she paired with blush-colored sketches, scribbles and photographs. great woman is a greater man, and Stephan was Prada court shoes, chatted to Smith described the tone of the book, mine.” — MARC KARIMzADeh international royal guests including which takes the form of a conversation the King Abdullah II of Jordan and his between the designer and journalist wife, Queen Rania, and Queen Margarita Olivier Wicker, as “very honest. It was of Bulgaria. Other royals at the lunch just a conversation — the whole thing STOP HERE!!!!! included the emperor and empress of was done in two hours,” said the no- Japan, Queen Margrethe II of Denmark and nonsense designer. — C.T. the King and Queen of Sweden. The King of FAMIlY AFFAIR: Gilles Mendel’s 20-year- Bahrain also attended the lunch, with his A neW DIMenSIOn: Hugo Boss upped the old daughter Chloe Breitman-Mendel is invitation attracting some protest in the ante for Beijing’s fashion party season nIGhT AT eL MuSeO: The annual El Museo ‘Oh, god, it’s never going to fit, it’s going to making the most of her summer in Manhattan. U.K. due to his regime’s alleged human on Friday, throwing a bash for 1,500 del Barrio gala in Manhattan on Thursday need so much work and there’s no time,’ She and her pal Mat Devine have launched rights abuses. On Friday night, the after live-streaming its first-ever China night marked what some guests referred and then I’d put it on and it wouldn’t Animal Royalty, a T-shirt label that carries such Prince of Wales and the Duchess of Cornwall runway show across the world in 3-D. to as “the end of gala season,” and need a single alteration.” Margulies unexpected sayings as “Visitor” and “Peter hosted a dinner at Buckingham Palace The label, in China to kick off seemed to have been organized with that paused for effect. “Not even the hem. He Pan Is Dead.” Now that Nylon magazine has for a number of the visiting monarchs. what executives have described as particular fatigue in mind. Everything understands how to cut for a woman’s started selling the brand in its store, the pair — CATheRIne TIPPLe a major expansion of the brand’s important was at the beginning. The three body, how to make her feel beautiful, is pursuing specailty stores and will set up an retail presence in the country, put awards — for the arts, trustee leadership elegant…but with simplicity.” e-commerce site by the end of next month. They on a show of its Boss Black fall- and corporate excellence — were given — ALeSSAnDRA CODInhA are also selling logo key chains made of fur winter collection for men and women within 40-odd minutes before the dinner tails attached to carabiners. at one of the capital’s grandest was served. Guests had gravitated toward FAST TRACK: Michael Kors celebrated An undergrad at the School of the locations — the National Agricultural vibrantly colored ensembles for the the official opening of its first store in Art Institute of Chicago, Breitman-Mendel is Exhibition Center, a sweeping party and gingerly avoided stepping Taiwan Friday afternoon with a fashion also interning at Reddymade Design as Suchi complex of traditional Chinese garden on one another’s trains while navigating show situated above the streets of Xinyi, Reddy’s assistant. In her free time, the aspiring architecture. Film stars Tilda Swinton and Cipriani 42nd Street. Taipei’s main district for high-end designer is creating a customized T-shirt for Ryan Phillippe were among the celebrities Cindy Sherman, Bibhu Mohapatra and shopping and dining. The specially built The Smashing Pumpkins’ upcoming tour. on hand for the show, where actor Chow Carlos Mota were on hand, and Marc Anthony runway inside a skywalk bridge featured Animal Royalty plans to roll out Yun-Fat, the new face of Boss’ upcoming was rumored to make an appearance. local models wearing selected looks lifestyle products that are reflect the founders’ fall campaign in Asia, was the final Julianna Margulies presented the award from the fall collection and was attended offbeat sensibilities. “Everything is very model to walk the runway. The scope of for Excellence in the Arts to narciso by Asian celebrities and VIP guests representative of Matt and me. I think we’re the show underscored the importance Rodriguez, whom she described as “the including Hong Kong actress Angelababy. very funny and awkward. When people see us, of China’s growing market to the label. only designer to win two consecutive The new 2,800-square-foot unit inside they think, ‘They’re weird.’” she said. Following the show, guests took CFDA awards for women’s wear and the Taipei 101 is heavy on accessories and Breitman-Mendel recruited her five to the gardens and halls of the first fashion designer to be honored by El is part of the company’s larger five-year brothers including Sacha Mendel to appear exhibition center for dinner and Museo, and my dear, dear friend for the plan for rapid expansion in the region in Animal Royalty’s first lookbook. And she a cocktail reception that featured past 18 years.” that was announced on Wednesday. said she is always eager to get advice from her everything from a swing band to DJ Earlier, Margulies recalled being on Michael Kors chairman and chief father. “I ask him questions all the time. My dad Michael Gaubert, who spun at least one the set of the TV series “E.R.,” and calling executive officerJohn Idol said he hopes always says, ‘Do whatever you want to. I trust tune by the late Donna Summer. Rodriguez for a last-minute ensemble. to open stores on the island in the future. you. If you do something stupid, it’s OK.’” said Ryan Phillippe Tilda Swinton — KAThLeen e. MCLAuGhLIn “I’d get this slip of red fabric and think, — MenGLY TAInG Breitman-Mendel, adding, “He wants to hang up the T-shirts in his office.” - ROSEMARY FEITElBERG

BEAUTIFUl MONEY: Natural baby skin Ann Inc. Profits Jump 5.2% care purveyor Episencial has raised $200,000 through CircleUp in what is believed to be the cent to $28.7 million, or 58 cents a di- first equity investment in a consumer products By EVAN ClARK luted share, from $27.3 million, or 51 For more career opportunities log on to WWDCareers.com. brand made through a crowd-funding Web site. cents, a year earlier. Earnings for the It took Episencial 14 days to raise the capital ANN INC. TOPPED Wall Street earn- most recent quarter came in 7 cents from 18 accredited investors. “We didn’t know ings expectations in the first quarter ahead of the 51 cents analysts expected. who they all were by any stretch, but several of on the strength of the loft division. But Sales for the three months ended April them have already contacted me post-close and the Ann Taylor brand saw comparable- 28 increased 7 percent to $560.4 million Spaces turned out to be absolutely value-add investors. store sales fall 6.9 percent, with a 15.5 from $523.6 million on a 3.8 percent It all of a sudden broadened our network percent drop at its stores, as the com- comparable-store sales rise. COMMERCIAL exponentially,” said Kim Walls, chief executive pany steered away from price cuts. Comps at the loft brand rose 11.3 per- officer of los Angeles-based Episencial. “We got REAL ESTATE PATTERNS, SAMPLES, ACCESSORIES CO SEEKS HANDS ON CFO “In the [Ann Taylor] stores channel, cent, and Krill said customers responded PRODUCTIONS Exp. w/ projections, budgets, factors, the kind of investor that we would have wanted we significantly reduced promotional well to the division’s entire product offer- Full service shop to the trade. royalties, audits; Manage bank rela- Fine fast work. 212-869-2699 tions, Controller, A/P, A/R. Resume w/ even without crowd sourcing except that we got activity as we focused on reinforcing ing, driving strong conversion. sal req: [email protected] them faster.” the aspirational nature of the brand,” “Woven and knit tops delivered Episencial has also raised $300,000 via Kay Krill, chief executive officer, said. very strong results,” Krill said of loft. GREAT OPPORTUNITY - LADIES traditional means from several investors, “We have invested more in opening “Pants, shorts, skirts, dresses, acces- Showrooms & Lofts JR./Missy/Plus - Jacket & Sporstwear BWAY 7TH AVE SIDE STREETS Co. Seeks motivated / Exp. Sales Exec notably Seventh Generation Inc. co-founder price points and select categories, sories and shoes were also exception- Great ’New’ Office Space Avail w/Contacts At Major Mass Market Jeffrey Hollender and Philip Schlein, former ADAMS & CO. 212-679-5500 Accts. Must be self starter. E-mail and are seeing great success so far.… ally strong. Color worked across all Resume to [email protected] chief executive officer and president of Macy’s We definitely have become more surgi- categories and loft’s print and pattern California. “I truly see Episencial being one of cal in our approach to markdowns and offering was also very successful, with ATTENTION those companies that successfully bridges the FOR SALE promotions in this channel, and we are stripes being a standout.” CLASSIFIED ADVERTISERS Beautiful display units. 7 Contintents gap between naturals and mainstream markets definitely improving our gross margin About 70 percent of loft’s assortment mahogany & brushed stainless, free- In observance of standing units, hand forged iron racks without compromising their values or product rate and we will continue to be surgical was priced under $50 during the quarter. & antique apothecary cabinets. Plus quality,” said Schlein. the Memorial Day Holiday, an assortment of jewelry display in our approach as well.” Shares of Ann rose 3.2 percent to pieces. Call Hamrah’s 201-871-4444. Episencial, which holds the license to The firm’s net income rose 5.2 per- $26.68 Friday. WWD will not publish on market products with imagery from the book, Monday, May 28th. “The Very Hungry Caterpillar,” has generated Fairchild offices also will be roughly $1 million in annual revenues from closed that day. 12 stockkeeping units priced from $5 to $24, Peter J. Solomon Taps Shiffman Deadline for issue of including bestsellers Sunny Sunscreen SPF 35, Tuesday, 5/29 will be Soothing Cream and Playful Wash, at 900 stores PETER J. SOlOMON CO. plans to add advising companies as diverse as Bed Friday, 5/25 at 11am ET. such as Whole Foods, buybuy BABY, ecomom. David Shiffman, the former head of re- Bath & Beyond Inc., J. Crew Group Inc., Thank you for your cooperation. com and diapers.com. - RACHEl BROWN tail investment banking at Goldman, liz Claiborne Inc., l.l. Bean Inc., The Sachs & Co., to its ranks today. TJX Cos. Inc. and Under Armour Inc. POlO MATCH: Fred Perry, the British Shiffman, 44, will become managing For the past three years, Shiffman sportswear label known for its preppy polo director in the investment bank’s retail, was a partner at Miller Buckfire & Co., (800) 423-3314, or email [email protected] shirts, is relaunching its collaboration with Raf e-commerce and distribution group. The where he also worked in the sector. Simons. The spring-summer 2013 Raf Simons banker spent over a decade at Goldman — E.C. x Fred Perry collection will launch at Men’s Fashion Week in Paris in June, featuring 28 style and color variations. Distribution and marketing is to be handled by Fred Perry. “We have great appreciation for the heritage of the brand as well as their dynamism in guiding the w21a011b.indd 11 5/20/12 3:38 PM 05202012154141 LAST CHANCE SUMMIT 2012 JUNE 4, NEW YORK LEAD THE WAY

Rebecca Minkoff Tabitha Simmons Kevin M. Burke Stuart Weitzman REBECCA MINKOFF LLC DESIGNER AMERICAN APPAREL & STUART WEITZMAN FOOTWEAR ASSOCIATION (AAFA) HOLDINGS LLC

Debbie Ferree Kevin A. Plank Ken C. Hicks Leandra Medine DSW DESIGNER SHOE UNDER ARMOUR INC. FOOT LOCKER, INC. THE MAN REPELLER WAREHOUSE

ADDITIONAL SPEAKERS

Laurence Dacade John Jonas Alessandra Lanvin Uri Minkoff Blake Mycoskie Leah Robert DESIGNER THE JONAS GROUP APERLAI REBECCA MINKOFF LLC TOMS CAMUTO GROUP

TO ATTEND: [email protected], 212.630.4379. TO SPONSOR: [email protected], 212.630.4425. WWD.COM/FN2012

SPONSORED BY: WWDCOUTUREJEWELRYSECTION II PREVIEW

3 1. Wendy Yue’s 18-karat gold 1 and wood cuff with sapphires, diamonds and tsavorites. 4 2. Irene Neuwirth’s 18-karat yellow gold earrings with boulder opals and diamonds. 3. Jude Frances Jewelry’s sterling silver and 18-karat yellow gold ring with sapphire pavé and quartz stones. 4. Colette’s 18-karat gold ring with diamonds and emeralds. 5. MCL by Matthew Campbell Laurenza’s enamel bracelet 5 with green agate. 6. Colette’s 18-karat gold earrings with 6 emeralds, chalcedonies and diamonds. 7. Armenta’s 18-karat yellow gold and oxidized sterling silver ring with opals, white diamonds and blue sapphires. 8. Carla Amorim’s 18-karat black gold, black diamond and jade necklace. Sea and 8 7 Be Seen Opals, emeralds and tsavorites are some of the stones making a big splash in ﬁne jewelry at this year’s PHOTOS BY Couture show in Las Vegas. JOHN AQUINO; STYLED BY ROXANNE ROBINSON-ESCRIOUT 2 WWD MONDAY, MAY 21, 2012

SECTION II WWD.COM

WWD COUTURE JEWELRY PREVIEW Vanessa Leu Fine Jewelry’s 18-karat white gold and black rhodium earring with morganite and black diamonds.

VANESSA LEU ONES TO Talk about a career swap. Chinese born Vanessa Leu was a journalist in Taiwan covering issues such as the dire living conditions of Taiwanese aborigines until she relocated to the U.S. in the mid-Eighties, enrolled at the WAT CH Gemological Institute of America and took up jewelry making. A pendant of yellow Although she’s been designing for quite gold, diamond, spinel, Here are five emerging brands some time and received the JCK Rising chalcedony and black Star award in 2010, this is Leu’s first cohesive collection — mother-of-pearl from taking a bow at the Couture and her debut at the five-day Couture show. Her sculptural Phillips Frankel. jewelry show, May 31 to pieces range from $900 to $36,000 and mostly comprise rose and blackened gold, diamonds and gemstones, such June 4 at the Wynn Las Vegas. as a $36,000 pair of trillion-point earrings with morganite and black diamonds set in 18-karat white gold and black rhodium — all created with reclaimed metals, eco- conscious materials and conflict-free diamonds. Leu said she is artistically inspired by the works of classical Chinese painter Bada Shanren and calligrapher Huai Su and spiritually influenced by her lifelong practice of Zen and philosopher Lao Tzu — which also inspires her to use only manufacturers with ethical labor practices. — R.S.

OCTIUM every brand on the market and Octium’s Americans might not be found our shape, the tilted 18-karat familiar with Octium, the octagon, to be original — which is yellow gold fine jewelry brand launched so difficult to do.” and diamond ring. by Kuwaiti power couple Fahad The brand released Series I in Al-Hajri and Alanood Al-Sabah, 2011 during Paris Fashion Week, but that’s about to change. and later at Harrods in London, Making its debut at Couture, before showcasing it at the Octium the two-year-old brand includes boutique in Kuwait’s 360 Mall. Series I, a rose gold and diamond “The initial design process collection, and Series II, a yellow is a very special time for us,” PHILLIPS FRANKEL in a black diamond “flame” from gold and diamond-encrusted line. said Al-Hajri, who explained It’s all in the family for two-year- the Elements collection is another Retailing for between $1,900 and that the company operates a old jewelry brand Phillips Frankel: standout. $10,000, with most pieces between small workshop in Kuwait. “We Mother Lisa Frankel and daughter There are also plenty of geometric $4,000 and $10,000, both groups nod sketch our ideas and review them Danielle helm design, while eldest son references, orange sapphires, unlikely to the shape of a slanted octagon, as together before getting anyone Derek and Danielle’s husband, Alex color combinations, even more leopard well as the number eight. else involved. Once we feel the Nemiroff, head up the marketing and jasper (a favorite semiprecious stone “I was born on Aug. 8, so the ideas best reflect our vision, we business sides. of the Frankels that they’ve paired number eight is symbolic to me pass them on to our in-house The label, available in 40 doors with rubies for the first time), and an as well as prominent in various designer, who manufactures the including London Jewelers and emphasis on prongs. cultures around the world. The piece or collections.” Harrods, will exhibit its fine jewelry “Too often, the goal with structural number eight symbolizes health Some pieces are made in Hong for the first time at the Couture show. elements (like prongs) is to simply hide and prosperity, and is also a Kong, the U.K. or Italy. The company has expanded upon its them. In many cases, I feel that’s a prominent figure in Islam,” said “Being involved in the creative core of delicate gold and diamond missed opportunity to add something Al-Sabah, who is also a Kuwaiti process — with the evolution of button bracelets, diamond stackable beautiful and signature to the piece,” princess and a first cousin of even a single piece of jewelry being rings, pavé diamond pendants and Danielle Frankel said of the new Sheikh Majed Al-Sabah, the a learning [process] on its own — elegant semiprecious stone offerings prongs designed in the shape of the nephew of Kuwait’s Amir and we design collections that appeal to with four new collections for this show. petals from the brand’s logo. “They founder of the Villa Moda luxury cosmopolitan markets,” he added. A $12,000 pendant from the should be viewed as another aesthetic mall in Kuwait. “We researched — ALEXANDRA STEIGRAD Wildflower line — made of yellow gold, component of the overall piece — not diamond, spinel, chalcedony and black a separate structural requisite — to mother-of-pearl and inspired by Tim blend fashion with function and add Walker’s photograph of Eglingham Hall to the design, as well as to bring our THE 1884 COLLECTION upward of $15,000. with balloons — is the collection’s show signature to the forefront of the piece.” Sitting at a cafe with a friend near But, he says, what makes 1884 stopper, but a gray agate ring blanketed — RACHEL STRUGATZ the Trevi Fountain in Rome last unique isn’t just the use of the fall, Alberto Petochi pondered his coins: The company invites every next career move. purchaser to register the new Following a 13-year career at bauble along with a wish, so that a Roberto Coin, Petochi was ready to coin (and their wish) can be thrown PHYNE BY PAIGE NOVICK jump back into jewelry. Oddly it into the Trevi Fountain. The Four years after the launch of her was then, while watching firm records the coin tosses namesake contemporary jewelry label, tourists toss coins into the via social media sites like designer Paige Novick will release her fountain, that he came up Facebook. The brand also first fine collection, Phyne by Paige with his next venture: a recently partnered with the Novick, at Couture. jewelry brand called The Make-A-Wish Foundation, The collection’s prices range from 1884 Collection. and will provide children about $1,500 to $12,000 retail. The sleek In January, he who have life-threatening pieces offer a variety of metal finishes launched the line of illnesses a chance to and contain mostly 18-karat gold, with earrings, rings, bracelets, travel to Italy. diamonds and semiprecious stones such as necklaces and pendants A silver and coin “It’s something that labradorite, citrine and moonstone. that incorporate ring from The people feel good about,” said “While I hope people will recognize reproductions of three 1884 Collection. Petochi, who explained that the same hand at play with respect to the different Ancient Roman the company’s only problem use of asymmetry and clean modern design, coins. Hand stamped by Roman is keeping up with its fast growth. the two collections are markedly different,” artisans, the silver coins feature He said the brand will “far exceed” Novick explained. “Phyne is distinctly more three Roman emperors and are its internal goal of $3 million in feminine, delicate and razor sharp in its execution, part of three different collections: wholesale sales for the year. Phyne by Paige whereas the main collection focuses on bolder, gutsy, Trevi, a charm-based line; 1884, “We will send a certain amount Novick’s 18-karat gold statement pieces.” silver-based jewelry, and Appia, a of families a year to Italy, no cuff with diamonds. She added that the idea of working with diamonds and gold and silver-infused line. matter what our sales are,” he said. gemstones had been “ruminating” for several years — she Retailing from $180 to $5,500, “The biggest challenge is there has called designing in fine gold the “Holy Grail” — but she waited until the time and the collection also features to be a kid who wants to go to Italy the manufacturing partner were right before producing this higher-end line. one-of-a kind pieces with black — most want to go to Disneyland or — R.S. diamonds and yellow gold for the Super Bowl.” — A.S. ©D.YURMAN 2012 ©D.YURMAN

DAVIDYURMAN.COM 888-DYURMAN 4 WWD MONDAY, MAY 21, 2012 SECTION II

WWD COUTURE JEWELRY PREVIEW

Victor Velyan’s 24-karat gold and silver ring with diamonds, white patina and a yellow pearl.

Lucifer Vir Honestus’ 18-karat rose gold and Anita Ko’s 18-karat yellow gold purple jade earrings bracelet with white diamonds. with diamonds. HAUTE

Jemma Wynne’s 18-karat gold bracelet with blue and gray chalcedonies, Arunashi’s 18-karat labradorites blackened gold and and black and textured ebony cuff with opal white diamonds. tanzanites, violet sapphires and diamonds.

Marco Bicego’s 18-karat yellow gold necklace with sapphires and diamonds.

FOR MORE IMAGES, SEE WWD.com/ accessories-news.

PHOTOS BY JOHN AQUINO; STYLED BY ROXANNE ROBINSON-ESCRIOUT WWD MONDAY, MAY 21, 2012 5 WWD.COM

Monique Péan’s 18-karat recycled oxidized white gold, fossilized jet and woolly mammoth necklace with white diamond pavé.

NOT FOR THE FAINT OF John Hardy’s 18-karat gold and sterling-silver ring with blue topaz, HEART, DRAMATIC JEWELRY diamond pavé and African rubies. IS STRUTTING ITS STUFF AT COUTURE. FL

Ippolita’s 18-karat gold and pavé diamond bracelet.

David Yurman’s sterling-silver and diamond pendant.

Slane’s sterling- silver earrings with multicolored pavé sapphires.

Asha’s 18-karat gold ring with a carnelian stone. ASSISTANT: VINCE LARUBINA ASSISTANT: FASHION 6 WWD MONDAY, MAY 21, 2012

SECTION II WWD.COM

WWD COUTURE JEWELRY PREVIEW CHANGING TIMES

ﬁve collections at Couture this year. By RACHEL STRUGATZ “We have...introduced Ippolita Notte, ▼ A yellow a mix of gold with black rhodium, which gold ring FINE JEWELRY HAS a new reality — offers a luxurious look at an interesting with black with brands, retailers and consumers price point,” Cavalcante said. The new diamonds adapting to elevated prices in the sector. line is priced considerably less than the from Phillips That’s not to say that higher prices company’s group of all-gold offerings. Frankel. have had a negative impact, but they For example, a necklace in the all-gold have forced houses to innovate. Gold range sells for $16,500 while a similar might have climbed to almost $1,900 an style in the Notte line retails for $2,495. ounce last August, but there’s still an Rosanne Karmes, founder and de- abundance of gold necklaces, earrings, signer of Sydney Evan, which marked rings and bracelets that will be on a decade in business this year, will at- ▼ Irene Neuwirth’s 18-karat white gold earrings display at the Nielsen Jewelry Group- tend the show for the second year. She set with 64.32 carats of emeralds, 4.76 carats produced Couture show. maintains that the brand saw 30 per- of rose-cut diamonds and mint chrysoprase. The ﬁve-day event, to be held from cent growth from 2010 to 2011 and proj- May 31 to June 4 at the Wynn Las Vegas ects 20 percent growth this year. The during Las Vegas market week, in- line retails from $300 to $40,000 and is cludes exhibitors such as Kwiat, Irene carried in 180 doors worldwide, includ- Neuwirth, Slane, Sally Sohn, Yossi ing Bergdorf Goodman, Neiman Marcus, Harari, Sydney Evan, Ippolita, David Holt Renfrew and Harrods. Perennial Yurman, Phillips Frankel, Vanessa bestsellers are diamond beaded brace- Leu, Colette, Sara Weinstock, Carelle, lets that launched in 2003; an evil

Melissa Joy Manning and Kara Ross — eye and hamsa line, and her signa- who plan to showcase bold pieces teem- ture “love” necklaces and rings. At ▼ Melissa Joy Manning’s 14-karat gold ing with the precious metal, brightly Couture, she will launch her Shy and sterling-silver five-drop earrings colored gemstones and an even further collection — which like Ippolita, is with druzy, raw topaz, Tahitian pearl, adoption of black diamonds. Karmes’ attempt at delivering on- fossil bamboo and laguna agate. Materials prices skyrocketed last brand fine jewelry, but with smaller year with gold leading that charge (sur- pieces that are less costly. compete for consumers. She said passing even platinum), but the pre- So while the good news is that 2010 and 2011 saw a combined 22 cious metal has dropped in price in re- gold has come down a bit in price, percent increase in business and, cent months — falling from $1,740 Feb. it is still significantly more expen- based on current figures, she proj-

1, to $1,714 March 1, to $1,677 April 1, sive than it once was. And this has ects 30 percent growth for 2012. to $1,664 May 1. Contrary to projec- compelled brands and de- Carelle retails from about $1,100 tions that the precious metal would signers to keep innovating in ▼ Carelle’s to $25,000 and is carried at stores surpass $2,000, this marks the ﬁrst time the metal arena, both design- 18-karat including Nordstrom and gold prices have decreased for a con- wise by incorporating more gold, peridot Bloomingdale’s — and al- secutive three-month period since May silver (such as the case with and diamond though this current col-

2000, but it’s also about the time ex- Ippolita’s gold and rhodium pavé ring. lection doesn’t include perts speculated that last year’s surge range) and by developing new emeralds, Regev has would start to be felt industry-wide. alloys (like Tiffany & Co.’s incorporated a bevy of Such has been the case at Kwiat, ac- new rose-hued Rubedo metal other green stones: green cording to Greg Kwiat, chief financial introduced this year in honor quartz, green tourma- officer of the company and chief ex- of its 175th anniversary). lines, tsavorites (or green ecutive officer·· of Fred Leighton, who “People have settled into garnets) and peridot. contends that the dramatic increase in the mentality of ‘This is our Then there are black gold and diamonds that occurred last new reality and let’s work diamonds. year is just now filtering through to with it.’ There’s just so much Initially, the material re-

jewelry prices at retail. silver you can substitute. The ceived a welcome that “The volatility of commodity pric- 14 karat and the alloys will be ▼ Kara Ross’ was tepid at best from ing, including gold and diamonds, has a strong player for that rea- 18-karat white, the industry and con- been one of the biggest challenges over son,” said Janice Winter, ceo yellow and rose sumers — but it’s only the last year. Most jewelry-related com- of Luxury Brand Consulting, gold ring with recently that the pre- modities are down from last summer’s who predicts the movement toward pavé diamonds, cious stone has helped

highs, but we are still keeping a close adopting new alloys will just get stronger. create a new “fashion- ▼ opals, citrine eye on how to properly price the col- “No one is selling gold rope chain any- Sara Weinstock’s 18-karat gold, and rubellite. forward fine,” accord- lection,” Kwiat said. “The challenge more. That is over,” said Whitney Sielaff, emerald and opal earrings. ing to Phillips Frankel, editorial director of National director of finance and Jeweler, a Nielsen Media Group- from Lorraine Schwartz (and matching operations Derek Frankel. He calls The volatility of commodity owned company, noting that the 65-carat ring) to the 2009 Oscars. black diamonds the bridge between recession turned silver — tradi- Designer Irene Neuwirth contends traditional fine jewelry and this more pricing, including gold and tionally considered a bridge metal that about 75 percent of the collection forward-thinking, modern component that jewelers hardly used because she’s introducing at the show contains within the category. And although the the prices were so low — into a green stones in some shape or form, precious stone has gone mainstream, es- diamonds, has been one key player in the sector. whether it’s emeralds, green tourma- pecially in the past year, black diamonds “At this point, designers, even line, green opal or her signature, chryso- have played a heavy hand in the brand’s of the biggest challenges the heavy hitters, have silver lines prase. This year, Neuwirth crafted about offerings since its inception in 2010. that have matured and diversi- 120 one-of-a-kind pieces that range from For Phillips Frankel, presenting its over the last year. fied,” he added. “That was one of $1,500 to $200,000, including 18-karat collection at the show for the first time, the big moves and that’s not a real white gold earrings set with 64.32 carats January through May’s business is up — GREG KWIAT, KWIAT shock to anyone [anymore].” of emeralds, 4.76 carats of rose-cut dia- 300 percent so far from the same time Traditional fine jewelry brands monds and mint chrysoprase that retail last year, and the company has seen this has caused is that the merchan- working with silver, such Yossi Harari for $61,000, as well as a yellow gold and growth of more than 200 percent in the dising and price-point mix has shifted and Slane (also showing its 15th anniver- diamond cuff with two mint chrysoprase last 12 months. He credits the decision in a way that puts certain styles out of sary collection), was a trend that gained trapezoids that retails for $22,900. to bring its sales team in-house, along reach for the target customer.” momentum last year and seems to have Carelle’s owner and designer, Chana with a hands-on approach when it Despite increased prices, the cat- staying power — but it’s the use of color, Regev, has incorporated emeralds into comes to working with retail partners, egory continues to perform well at re- most notably stones in vibrant greens her work since she started designing as instrumental in the brand’s success. tail, according to Kurt Salmon retail or tangerine, that’s shaping up to be and producing private label fine jewel- “We consider black [diamonds] a strategist Nancy Liu. this year’s runaway trend from a design ry in 1977. Since then, she launched her bridge — it’s not our focus — but we Case in point: Ippolita, a 13-year-old perspective. (Pantone named Tangerine namesake brand and started producing look at it because it helps the customer company, has seen massive growth over Tango its 2012 color of the year.) directly for the end consumer. understand where we are taking them the past several years — a 500 ··percent Janet Goldman, ceo and founder of Despite rising prices and uncertain when they’re going on this jewelry increase overall since 2008 — and has Fragments showroom and jewelry bou- economic times, the company has seen shopping journey. It helps let a less plans for a significant retail rollout tique, credits the resurgence of emer- steady growth, which Regev believes is fashion-forward customer know she’s within the next three years, as reported alds and like-colored stones to Angelina due to maintaining a focus on 18-karat looking at fine, just in a different way, by WWD in April. According to ceo Joe Jolie wearing a pair of $2.5 million, 115- gold and not shifting to alternatives and black diamonds are a great bridge Cavalcante, the company will unveil carat Colombian emerald drop earrings like silver or leather to cut costs and to get them there,” Frankel said. ADVERTISEMENT

 M E’      ,    

The Middle East’s most buzzed about fi ne Housed within the space are hand-selected jewelry destination, OCTIUM, has extended collections from international designers their operation to the U.K. In March, the such as Shaun Leane, Vicente Gracia to brand launched OCTIUM CREATES SERIES name a few. I and II at an exclusive presentation to a select group of A-list media in Manhattan. OCTIUM CREATES: SERIES I was launched While affi rming their reputation as a unique during Paris Fashion week last year and and innovative creative house for fi ne made its way to the luxurious Harrods jewels, OCTIUM debuts at Couture 2012 of London. This debut collection of fi ne with the launch of their third and fourth jewelry is the fi rst in a line of elements to namesake series, OCTIUM CREATES: Series be taken directly from the creators’ genius. III and IV. This is the point of fi ssion in which both fantasy and reality converge. OCTIUM’s concept is unparalleled, proving it a luxury destination in all respects. To The number eight is prominent in not only open the door into OCTIUM is to enter a the OCTIUM name, but also in the slanted fantasy world where an unforeseen dream and skewed octagonal outline that forms becomes a tangible reality. Infi nite creativity their insignia. Referred to as a pure shape, and a distinct imagination are infl uential their version of the octagon is tessellated elements of this international destination in molecular opulence throughout their store, established in 2009 in Kuwait. series’ and is anchored by white diamonds Recognized for their cutting edge artistic and other colored stones from their fi rst to approach and innovative curation of fi ne fourth line of creations. From daywear to jewelry, the space presents an intoxicating ornately crafted couture, every piece is experience to the discerning global jewelry crafted in the strictest of meticulous detail. buyer. OCTIUM’s creators, the husband and wife team Mr. Fahad Al Hajiri and HRH Sh. Reputable critics the world-over hail this Alanood Al Sabah, wanted this to be a store as pure genius, and its owners as true tribute to their concise vision of what a pioneers. It is rumored that these fi rst few modern fi ne jewelry selling space should stars to appear from the visionary depths of be. The result is a unique experience. the OCTIUM Nebulae, will not be the last.

For more information, please visit www.octiumjewelry.com Fresh. Luxe. Desire.

NEXT ISSUE AUGUST 2012

ISSUE DATE: 8.13 // CLOSE DATE: 7.26 // MATERIALS DUE: 7.30

For more information, contact Jennifer Marder, Advertising Director, at 212.630.4596 or [email protected]