Page 1 Thursday s

s RETAIL: Wal-Mart s DENIM: FINANCIAL: The launching new green Retail stocks industry initiative, page 8. gain 2.5% is betting in broader on denim market rally, s for back- page 14. FASHION: The iconic to-school, Ossie Clark label is page 7. shutting down, page 3.

Women’s Wear Daily • The Retailers’ Daily Newspaper • July 16, 2009 • $3.00

WwDThursdSportswear/Men’say Leisure Class Men’s New York market week kicks off this weekend with a well segmented variety of trade shows and a wide selection of product offerings. A sense of leisure pervades collections across all markets this season. Here, a linen Christopher Fischer sweater worn with polyester shorts by Parke & Ronen. Cutler & Gross sunglasses; Samira 13 necklaces; Tateossian bracelets. For more market week previews, see section II.

A Threatened Industry On the Edge of Chaos Should CIT Group Fail By Evan Clark The industry is facing potential turmoil after CIT Group Inc., which provides basic financing for thousands of small- and midsized apparel retailers and vendors, said Wednesday it probably won’t be rescued by a federal bailout. After days of intense negotiations, the New York-based commercial lender said there was “no appreciable likelihood of additional government support being provided in the near term.” The company said it was “evaluating alternatives” with its advisers. The disclosure raised the possibility of a bankruptcy filing by the financial giant and left many vendors and retailers in limbo about how they’ll finance their fall shipments and finance their businesses. See CIT, Page 3 PHOTO BY JEFFREY COHEN; MODEL: JAKE M./FORD; HAIR BY RYAN TANIGUCHI FOR TRESEMME; FASHION ASSISTANT: LUIS CAMPUZANO; STYLED BY ALEX BADIA CAMPUZANO; STYLED BY LUIS ASSISTANT: FOR TRESEMME; FASHION TANIGUCHI RYAN JEFFREY COHEN; MODEL: JAKE M./FORD; HAIR BY PHOTO BY WWD.COM

WWDThursSportswear/Men’sDay FASHION 6 Although the overall men’s color palette for spring ™ has been dominated by dark, neutral tones, red A weekly update on consumer attitudes and behavior based was the exception, in suits, coats and bags. on ongoing research from Cotton Incorporated GENERAL 1 CIT Group Inc. said Wednesday it had been advised there was “no appreciable likelihood” of TAKING A PULSE ON IMPULSE SHOPPING additional government support. BEAT: Ginny Hilfiger, who started her high-end Examining the Urge to Buy in Tough Economic Times s 6 Ginny H fashion brand in 2005, is getting into the bridge area with a line of tops and day dresses. In a world now embracing a “less is more” create something compelling to encourage impulse 7 DENIM: In a troubled landscape, retailers and philosophy, what are shoppers doing when they see a buys,” says Chroust, the retail trade executive. brands are targeting denim as the vehicle to drive garment they simply “must have”? “Today, that’s a harder sell, but they recognize that sales in the back-to-school selling season. Believe it or not, that depends less on pressing value propositions will resonate with shoppers. In 8 China must do more to open its market to U.S. financial concerns and more on the shopper herself. apparel, that value proposition is that one garment goods, services and investment, Commerce For many women in these challenging times, the that can update any wardrobe, is easy to care for and Secretary Gary Locke said in Beijing. term “must have” has taken on new meaning. “I makes many different outfits wearable for different First-quarter revenues at Burberry Group were seasons. Those are the pieces used to think of ‘must haves’ 8 boosted by the strong euro and new store as those great new pieces of that consumers are likely openings, rising 8.5 percent to $478.9 million. clothing screaming at you “I think consumers are thinking buying without planning.” from the pages of fashion about buyer’s regret before they Alle Fister, founder and 14 Mariella Burani Fashion Group is shaking up top management to strengthen the independence of magazines,” says Kimberly, a owner of Bollare, a West make a purchase, and that’s become its board as it restructures debt. marketing executive who was part of the new shopping process Coast-based fashion and EYE unemployed temporarily this and this new way of thinking about lifestyle communications spring. “Now I think of ‘must firm, agrees. “I am looking how and where one might best be 16 The fashion crowd gathered Monday night to pay haves’ as things like a roof over for special pieces that are homage to the first moon walk, which occurred my head and groceries in the spending any money.” wardrobe staples and have in outer space 40 years ago. kitchen. Of course, I still shop – Casey Chroust, Retail Industry character to make them a Men’s New York Market Preview is for clothing, but I am not as Leaders Association worthy purchase,” Fister says. included as a Section II in this issue. quick to buy that great new top “I am trying to buy key pieces A Ginny H day dress. or pair of shoes as I once was.” that will be able to carry over Classified Advertisements...... 15 These days, even those in the fashion industry to the next season so that I get the most out of every To e-mail reporTers and ediTors aT WWd, The address is are quick to take a more cautious approach when purchase.” [email protected], using The individual’s name. Fitting the bill of easy care, versatility and an ability shopping for apparel these days. “I am not as likely to WWD IS A ReGISteReD tRADeMARK oF ADVANCe MAGAZINe PUBLISHeRS INC. CoPYRIGHt ©2009 buy something now as I used to be,” says the designer to transcend seasons is everyone’s favorite fiber: FAIRCHILD FASHIoN GRoU P. ALL RIGHtS ReSeRVeD. PRINteD IN tHe U.S.A. Lela Rose. “I think about my purchases more, and cotton. A significant 76% of female respondents and VOLUME 198, NO. 11. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in March, April, June am able to weed out the impulse purchase that way.” 82% of male respondents cite cotton/cotton blends and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division “I think consumers are thinking about buyer’s as their favorite fabrics to wear. of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. regret before they make a purchase, and that’s Like women, men today are also looking for the Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage become part of the new shopping process and this exceptional in their impulse purchases. “I do have paid at 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 new way of thinking about how and where one the impulse buyer in me, but when I make the buy, addresses to: P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 PoStMASteR: SeND ADDReSS CHANGeS might best be spending any money,” says Casey it has to be the one thing I have been waiting for a 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, Chroust, Senior Vice President of Retail Operations long time for someone to finally make,” says Tony Ta CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as for the Retail Industry Leaders Association, a retail of JT Handbags, a luxury collection he co-founded 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 advocacy group based in Arlington, VA. with partner Jeffrey Parker. “But I also am looking one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You Women have long been “planners” when it for the one thing that no one else has. Yes, it does will receive a full refund on all unmailed issues.” First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third comes to shopping. When asked how they made have to be special.” Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to the majority of their purchases in 2009, 62% of Rose, the designer, also adopts a wait-and-see 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that women said they had planned them, according to policy with her apparel purchases. “I have been an offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or the Cotton Incorporated Lifestyle Monitor™ survey impulse shopper in the past, but have resisted it information, please advise us at P. O . Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S lately. If I am still thinking about something a few WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, - a figure that did not change significantly from UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, 2008. Whether days later, it becomes AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, their purchases a “must have”.” ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS are planned or Are Clothes Purchases Planned or Impulse? Monitor data SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. i m p u l s i v e , o n e indicates that these pattern does hold AGES 13-24 25-34 35-55 56-70 days, women are true: women are waiting for a bargain. DAILY The luxury business as definitely keeping Planned purchases 58% 57% 65% 66% More than six out of “ a tight rein on new ten respondents say QUote we know it, well, you can clothing purchases. Impulse purchases 42% 43% 35% 34% that they buy the According to the latest styles when throw that out the window. The model Monitor sur vey, they are on sale at HOUSEHOLD INCOME <25K 25-49K 50-74K >75K 7 9 % o f f e m a l e the end of the season that we used for many years is gone respondents report versus the beginning that they are buying Planned purchases 62% 62% 66% 60% of the season. and it’s a new day. the same or less Ironically, those — Kilgore” Trout owner Wally Naymon. Section II. apparel than they did Impulse purchases 38% 38% 34% 40% end of season sales last year, a percentage are what can spur largely reflective of impulse buying in Whitney their personal financial situations: 55% report that the first place, notes Choust. “If a garment fits the Port TODAY ON they have less money to spend on clothing than they criteria of what even the most careful shopper has in did last year. mind and it’s at a great price, you can bet the impulse Despite the economic turmoil, there is still a core to buy will kick in.” population of impulse buyers, research from the Monitor survey indicates. The propensity to shop mainly on impulse appears to ebb with age and, to a This story is one in a series of articles based on find- ings from Cotton Incorporated’s Lifestyle Monitor™ WWD lesser extent, with household income. According to .com Monitor data, women ages 13 to 24 (42%) and 25 to tracking research. Appearing Thursdays in these 35 (43%) admit to shopping impulsively, compared pages, each story will focus on a specific topic as it • More images from the Louis Vuitton to women ages 36 to 55 (35%) and 56 to 70 (34%). relates to the American consumer and her attitudes and Proenza Schouler parties Even for those disciplined shoppers, however, and behavior regarding clothing, • Additional looks from the Prancing appearance, fashion, fiber selection and it may be increasingly difficult to resist a potential Leopard activewear line “must have”. “Smart retailers have always tried to many other timely, relevant subjects. • WWD Blog:

PHoTo By THoMAS IAnnACCone THoMAS By PHoTo Nacho Figueras, Gossip Guy WWD, THURSDAY, JULY 16, 2009 3 WWD.COM CIT Peril Puts Industry Players at Risk Ossie Clark Shuts Continued from page one storefronts [selling new designs],” Driscoll said. “This is terribly upsetting,” said Gary Wassner, Smaller vendors who use CIT’s factoring services By Samantha Conti president of Hilldun Factors. “This will upset the en- could be forced to make a leap of faith, trusting retail- tire shipping season. It will be very disruptive. I am ers to pay them. LONDON — The iconic Ossie Clark label, which relaunched surprised that the government would not think about “A lot of these companies would probably wind last year, is shutting down. the thousands of people that would be affected. This up taking the risk on their own and they would prob- “Due to market conditions, developing the business also impacts so many people on the periphery [of the ably wind up shipping [if CIT failed],” said Marc has been challenging and the decision has been made to apparel industry].” Federbush, partner in charge of the apparel and cease trading,’’ a company spokesman said Wednesday. Hours before the 6 p.m. announcement from CIT, textile services group at the accounting firm Anchin, Brothers Marc and Julian Worth, clothing business vet- there was a flicker of optimism when trading was Block & Anchin. erans, hoped to turn Ossie Clark into a global designer halted on the lender’s stock in the final half hour of The ability of CIT’s wide breadth of activity to be brand. They had an exclusive licensing deal with Alfred trading, with shares up 3 cents to $1.64. Considered picked up by others appeared small. John Millman, Radley, a manufacturer who purchased Clark’s business a likely prelude to a major announcement just as president of Sterling National Bank, which has a fac- in 1968. Marc Worth never disclosed how much he paid President Obama was being briefed on the situation. toring arm, said banks without one wouldn’t be able to for the license, although he told WWD in 2007 he planned Hope surrendered to fear just two hours later. handle collection operations for clients or understand to invest “a seven-figure sum’’ in the overall project. The Treasury Department, the Federal Reserve the nuances of insuring receivables as factors do. A label of the Sixties and Seventies, Ossie Clark made and the Federal Deposit Insurance Corp. have been “Good quality clients will find financing,” he said. its latest debut at London Fashion Week in February 2008 discussing whether to rescue CIT, which already re- While some financial services firms could supplement under the design direction of Avsh Alom Gur. Gur’s last ceived $2.33 billion in federal funds. their current services, a learning period would be re- collection for Ossie Clark was for fall 2009. His colorful, CIT has more than $1 billion quired. While “challenging,” he print-filled collections had received mixed reviews, and in debt coming due by September said, “it could be done.” he quit the label in March to focus on his signature line. and had been trying to hammer For smaller vendors dealing Clark, one of the most influential designers of the out a deal with regulators to im- with already stretched retailers Sixties and Seventies, was best known for his detailed, prove its balance sheet and stay facing another weak holiday sell- architectural tailoring, and his clothing was often com- afloat. How it will manage to do so ing season, shipping could mean plimented by the romantic prints of his then-wife, Celia now, with its best hope for a life- betting everything. Birtwell. Once known as “King of the Kings Road,’’ Clark’s line denied, is unclear. “You’re potentially risking your fluid, often biased-cut shapes were distinctive with their “CIT is a critical player for entire net worth, personally and full sleeves, swingy skirts and scoop necks. middle-market companies, most corporately, if you ship people During his heyday, Clark was friends with celebrities specifically those in the fashion you’re not prepared to ship if you such as Elizabeth Taylor, Mick and Bianca Jagger, Cecil industry,” said William Sweedler, have no other home for the mer- Beaton, Jimi Hendrix and Marianne Faithfull. chairman and chief executive offi- chandise,” said Matt Polsky, manag- Even after his death in 1996, Clark’s designs contin- cer of Windsong Brands. “The gov- ing director at NetWorth Solutions. ued to attract a fashionable fan base, including Kate ernment looking at CIT as noncrit- About half of NetWorth’s clients Moss, Zandra Rhodes and Emma Watson, who was pho- ical is inaccurate. CIT represents work with CIT, which had tightened tographed this month wearing vintage Ossie Clark to the people the government is try- up its terms in recent months. the London premiere of “Harry Potter and the Half ing to help at this point in time.” “We’ve seen a lot of clients Blood Prince.” “Any supply of credit for the come in and say a healthy CIT Clark’s business acumen never matched his creative apparel market is an important was difficult to work with,” said talents. He was declared bankrupt in 1983, and was living one,” said Arnold Aronson, man- John Henderson, a director at in a government subsidized apartment at the time of his aging director of retail strategies NetWorth. “Before they got into death. at Kurt Salmon Associates. this problem, there were prob- The Ossie Clark closing follows that of Biba, another The possible failure of the in- lems with suppliers just to work vintage brand that a private investor had attempted to dustry’s largest factor comes at a time when willing with any of the factors in terms of their standards.” revise. Biba shut last summer after a few seasons on the lenders are already scarce. Fashion’s Washington contingent tried to prod the London runway. While bigger players have their own working capital government to step in and shore up the financing lines of credit with banks, Aronson said smaller, emerging giant, but apparently without success. designers who are trying to get a footing are vulnerable. “If CIT were to fail, a chain reaction would be set off Kevin Burke, president and chief executive officer that could very well leave retailers with a shortage of at the American Apparel & Footwear Association, said merchandise during the crucial holiday season this fall,” Richard Zannino Joins CCMP members of his board estimated CIT represents about said Tracy Mullin, president and chief executive officer 60 percent of factoring volume within the apparel in- of the National Retail Federation, in letters to Treasury dustry. A failure “would be another nail in the coffin,” Secretary Timothy Geithner and Sheila Bair, chairwoman Ahead of Eddie Bauer Auction he said. “It would be devastating. It would have a very of the Federal Deposit Insurance Corp., early in the day. strong impact on the industry’s ability to get products Urging the two federal regulators to provide “all By Vicki M. Young to the consumer.” possible government assistance,” Mullin warned that Even before its own finances reached a crisis level a failure of CIT would hurt thousands of retailers and CCMP Capital, the stalking-horse bidder for the assets of this week, the reticence of the firm’s factoring arm to ultimately consumers, whose spending accounts for Eddie Bauer Holdings Inc., beefed up its retail brain trust cover fashion’s finances had been a blow to the industry. two-thirds of the nation’s economy. Wednesday, adding former Saks Inc. and Liz Claiborne The company lent about $4 billion to the apparel “I strongly encourage the [Treasury Department Inc. executive Richard Zannino. industry last year, a drop of about 20 percent, accord- and FDIC] to take a very close look at the role CIT If CCMP succeeds in securing its target at the Bauer ing to estimates by Marie Driscoll, an equity analyst at plays in the retail industry and act appropriately to auction, scheduled to take place in Delaware today, Standard & Poor’s. ensure that this essential lending institution remains Zannino would give it an executive with strong oper- “This just further hurts the vibrancy of the apparel economically viable,” Mullin said in the letters. ating credentials. At CCMP, he’ll serve as a managing industry,” she said. “For your companies that are doing In addition to advancing vendors cash for ship- director and will work with Kevin O’Brien as co-head $1 million to $250 million in sales, that’s who this is ments, the firm also finances small- and medium-sized of the private equity firm’s consumer, retail and media hurting and a lot of those companies are the lifeblood retailers. investment efforts. of this business. They’re the companies that grow up to “If the criterion for whether a financial institution Zannino was chief executive officer of Dow Jones & Co. be Liz Claiborne, that grow up to be Juicy Couture.” should receive government assistance is whether it is during its 2007 acquisition by News Corp. and joined as Driscoll said New York’s fashion industry would be ‘too large to fail,’ CIT is most certainly too important Dow Jones’ chief financial officer after seven years at Liz hurt if new designers are unable to get financing and to the retail industry to be allowed to fail, and the Claiborne. He was at the company from 1998 to 2005 and are squeezed out of business. retail industry is too important to the economy to be his last job was executive vice president with responsi- “That’s what makes New York creative in a fash- placed under additional stress,” Mullin said. bility for areas including strategy, finance, mergers and ion sense, the fact that you can walk down Madison — With contributions from V.M.Y., acquisitions and technology. Beginning in 1993, Zannino Avenue or the Lower East Side or SoHo and find Kristi Ellis and Liza Casabona spent five years at Saks Fifth Avenue, where he rose to executive vice president and cfo. In between his tenures at Saks and Claiborne, Zannino was cfo of General Signal, where he was involved in the sale of the company to SPX. Kellwood Bankruptcy Fate Uncertain At today’s auction for the Bauer assets, CCMP is expect- ed to face intense competition from a number of firms, in- The fate of Kellwood Co. remained un- have been satisfied about extending the time frame cluding Golden Gate Capital and Iconix Brand Group Inc., resolved Wednesday night as the company battled for when it would recoup its investment, given the which is believed to be working with an unidentified stra- against a midnight deadline to avoid defaulting on $140 economic environment. The bank was expected to ac- tegic retail partner. CCMP entered into a stalking-horse million in notes and possibly filing for bankruptcy. cept the proposed terms, but balked one week before agreement to acquire Bauer for $202 million in cash, sub- Indications are that negotiations with Deutsche the notes were due to mature. ject to a number of adjustments, when the retailer filed Bank, the largest noteholder, remain at a stalemate, Sources said the bank explained its change of heart for Chapter 11 bankruptcy protection on June 16. with the bank holding firm to its stance of not accept- as due to “internal reasons,” but chose not to elaborate. VF Corp. and a number of liquidators have also ex- ing the proposed swap offer to exchange maturing Should Kellwood be forced into bankruptcy, the pressed interest in Bauer. Two hedge funds that control notes for new ones that mature in 2014 with almost bank might still be ahead financially, particularly if $200 million of the retailer’s debt, Monarch Alternative twice the interest rate. it has credit insurance, which would help it recoup Capital and Anchorage Advisors, were said to be con- A spokesman for the apparel firm said there was the loss. sidering a joint bid with liquidators Hilco Consumer no change in the situation as of press time. However, those left on the hook would be the other Capital and Gordon Brothers. The debt holders were Representatives of the bank in the U.S. were in- noteholders, many of whom are believed to have al- reportedly examining business model under which volved in negotiating the structure of the new notes, ready accepted the terms of the exchange offer. Those Bauer would exit its store base of 371 units but retain but sources said executives at headquarters in noteholders would then become creditors of Kellwood. a brand presence through licensing and direct-to-con- Germany, where the parent company is based, may not — V.M.Y. sumer sales. 4 WWD, THURSDAY, JULY 16, 2009

PHOTOS BY Dsquared GIOVANNI GIANNONI DELPHINE ACHARD DAVIDE MAESTRI STEPHANE FEUGERE MAURICIO MIRANDA

Calvin Klein Collection

Salvatore Ferragamo Crimson Tide For centuries, human beings have asserted their strength with emotionally intense color to signify leadership, passion, desire and power. Although the overall color palette for spring has been dominated by dark, neutral tones — seen as a reflection of these cautious, practical times — red was the obvious exception. Designers made a show of fearlessness with red suits, coats, bags — you name it.

Paul Smith Givenchy WWD, THURSDAY, JULY 16, 2009 5 WWD.COM

Bottega Veneta Hugo by Hugo Boss

Trussardi 1911 Burberry Prorsum

Giorgio Armani

Lanvin Jean Paul Gaultier

Raf Simons Moschino 6 WWD, THURSDAY, JULY 16, 2009 WWD.COM The Beat Ginny H Crosses Over To Bridge Vince’s Aggressive Retail Plan As Kellwood Co. tries to avert bankruptcy, one of its top- By Julee Kaplan performing contemporary brands is moving forward with a retail rollout. A Ginny H Christopher LaPolice, co-founder and president of Vince, the $90 million Ginny Hilfiger hopes to drum up pintucked contemporary sportswear firm, said even if Kellwood files for Chapter 11 business in the bridge department. cotton bankruptcy protection, Vince will open 10 more stores by spring. The designer, who started her high-end T-shirt, “I would be lying if I said it isn’t a little scary rolling out in a recession, Ginny H fashion brand in 2005, is getting into right, and but I see a lot of opportunity in these neighborhoods we are entering,” the bridge area with a new, lower-priced col- day dress. LaPolice said. “We have an opportunity now that we didn’t have three years lection of knit and woven tops and casual ago when we started looking at locations. The rents are lower, and there are day dresses. Carrying the same brand name some prime spots that have become available.” as her signature line, the bridge collection On Friday, the company will open its first outlet store in Orlando, Fla., fol- will launch for resort after a small test for lowed by full-price stores on Prince Street in Manhattan on July 25; Malibu, spring with the Neiman Marcus catalogue. Calif., on July 31; Dallas on Aug. 28; San Francisco on Sept. 4; Boca Raton, Hilfiger said she is targeting high-end de- Fla., on Sept. 18; White Plains, N.Y., on Oct. 2; Boston on Oct. 16; Short Hills, partment and specialty stores such as N.J., on Oct. 30, and Atlanta in the spring. The stores’ average size is 1,100 Bloomingdale’s and Saks Fifth Avenue. square feet. LaPolice declined to comment on sales expectations. “With my high-end line, it’s been These new stores, which feature women’s and men’s sportswear, will join hard to get it off the ground because the brand’s three other locations — in Manhattan’s Meatpacking District and it’s so expensive,” Hilfiger said. two in Los Angeles — which opened this year. “People love that I produce it in LaPolice said while he and his cofound- New York using European fabrics, ing partner, Rea Laccone, were looking but there isn’t a way to keep the Vince’s Melrose to open a store three years ago on Mercer prices low when you do that.” Place store in Street in Manhattan’s SoHo, they couldn’t So Hilfiger signed a partnership Los Angeles. find the right location, which is why they deal with Nexten Corp., a produc- decided to wait. It’s a good thing they did, tion company with offices in New he said, as the Meatpacking location is per- York and factories in China, to han- forming “well above plan,” he said. dle all production and shipping for “We are noticing all of the locals coming the bridge collection. Hilfiger still vate clients, but now more people in and really embracing the stores in their handles all sales and design of the can find my designs accessible.” neighborhoods,” LaPolice said. new line which includes printed Hilfiger started her label four Looking forward, LaPolice said he would woven tunics, soft cotton T-shirts years ago after working for her like to open a store on Manhattan’s Upper with pintucking and pleating de- brother, Tommy Hilfiger, for 15 West Side. tails, cotton polo shirts, long sleeve years. She launched Ginny H with “The brand has been performing so well crew neck tops, jackets and casual her husband, Chris Mahl, with a small at the Barneys Co-op on the Upper West day dresses in bright colors like pink collection offering classifications such Side, so I can really see us there,” he said. and yellow. The new collection whole- as dresses, suits, jackets and knits. The — J.K. sales from $26 for a knit T-shirt to $250 line is available at Bergdorf Goodman, for a cropped leather jacket. as well as smaller specialty stores. The “I love that I am able to do a more af- high-end collection wholesales from fordable line in this economy,” Hilfiger about $220 to $700. Prancing Leopard Leaps Into Active Scene said. “I still sell my higher-end line to Hilfiger said she expects to reach select specialty stores and I have devel- about $1 million in annual wholesale vol- By Marc Karimzadeh leopards from extinction. Elsewhere, oped a nice custom business for my pri- ume in the first year with the bridge line. the company also launched the NEW YORK — Prancing Leopard Prancing Leopard Organics Artisan Organics, a new lifestyle label with Product program to help women in WWDTREND an activewear bent, is bringing to- underserved communities preserve gether sustainability, philanthropy their traditional handicraft and gain cover girl and plenty of fashion. financial support. Prancing Leopard The line, which just launched at will be supplying these communities Cover-ups have become prancingleopard.com, may feature with such things as organic materials

s A.B.S. serious business in the clothes suitable for yoga, Pilates, and design guidance. by Allen swim market and there is dance and other fitness activities for The line is sourced and manu- Schwartz a big emphasis on tunics, women, men and children, but found- factured in Turkey, and while the caftans and robes. ers Bert and Sevda Holland see the company is launching it with its own versatile pieces moving beyond the e-commerce site, it plans to also — Kim Friday workout studio and onto the street. wholesale the collection to yoga and For instance, the 30-piece launch col- fitness studios and smaller chains, lection includes constructed jump- specialty stores and through “leopard suits, harem pants, reversible romp- advocates” — selected yogies nation- ers, drawstring tunics and cocoon shrugs, each consisting of more than 95 percent hand-harvested organic cotton in such colors as black, gray, lime green and pale lilac. The line sTory Burch wholesales from about $25 to $75. Sevda Holland cut her teeth in fashion, advertising and Web de- sign, designing the labels Droste and Molecule while living in Munich in the Nineties. More recently, the Turkey native focused on painting and made a name for herself with her large canvases, but friends en- For more, couraged her to return to apparel. “I see WWD.com. thought, if I do something in fashion, A look from it has to be something new,” she said. Prancing Leopard Rather than just create another Organics. brand, she and her husband thought s Tibi up a concept that evolves around phil- wide who sell the line directly to the anthropic endeavors — something they customer. “Our goal is to have 50 such both feel is more relevant than ever. people selling directly to studios,” “We have to go back to our core values, Bert Holland said. He noted the first- getting back to who we are to see what year goal is $10 million in retail sales. we are doing to this world,” she said. As for the overall philosophy, To that end, Prancing Leopard is a the duo summed it up with such founding member of Organic Team, an words as “Organic,” “Dynamic,” and s Shoshanna organization that aims to improve tex- “Balance.” The hangtag affirms these tile standards by supporting certified notions, and encourages wearers to a r organic practices, sustainable farming “Be Good,” “Do Good,” “Look Good” and fair trade. A portion of the com- and “Feel Good.” t Mit r pany’s online sales will go to the shop- Bert Holland explained the name

Robe per’s yoga, Pilates or dance studio of was inspired by the snow leopard s Eres Paris choice. In addition, two percent of the after seeing images of them. “They company’s profits will go to The Snow were regal, independent, with pride,

photos by Leopard Trust, which works to save and a bit of a wild flavor,” he noted. WWD, THURSDAY, JULY 16, 2009 7 WWD.COM Denim Report Jeans Primed to Go to the Head of the Class By Ross Tucker THE INDUSTRY IS BETTING BIG ON DENIM FOR BACK-TO-SCHOOL. In a landscape pockmarked with liquidations, reduced inventories and discounting, retailers and brands are targeting denim as the vehicle to drive sales in the year’s second most important selling season. Gap Inc. and Guess Inc. are going back to their heritage for fall and stress- ing denim in their merchandise plans, and Levi Strauss & Co. thinks an uptick SAMPERTON KYLE PHOTO BY in denim interest will help turn around lagging volume. A shift toward more affordable prices in many lines should also prove attractive to shoppers who have pulled back on spending because of the recession. Early forecasts on the season aren’t upbeat, but denim has shown resil- ience during the downturn. The National Retail Federation’s b-t-s survey found the average fam- ily with children in kindergarten through high school will spend $548.72, a drop of 7.7 percent from $594.24 last year. Although this fi gure includes anticipated spending on everything from pencils and Trapper Keepers to computers, it’s certain that consumers will be hunting down sales in almost every spending category. No less an authority than J. Crew Group Inc. chairman and chief executive offi cer Millard “Mickey” Drexler has said the jeans market is saturated at cheaper price points and at $125 and above. However, Drexler, who this week launched the Madewell ’37s jeans collection, also thinks there’s an opening in the middle for “cool, well-made, well-designed jeans at $59.50 and up to $100.” The recession “has clearly changed the spending habits of American families, which will likely create a diffi cult back- to-school season for retailers,” said Tracy Mullin, president and chief executive offi cer of the NRF. “As people focus pri- marily on price, strong promotions and deep discounts will Guess’ SoHo store features denim. ultimately win over back-to-school shoppers this year.” College freshmen may present the best opportunity. The NRF survey found freshmen will spend $820.77 on average ing its denim assortment to those shoppers looking for greater getting ready for school. Almost $180 of that will be spent value from premium denim. on apparel and shoes. Guess will increase the percentage of denim in company While the overall outlook may be weak, the denim cate- stores to 40 percent from 30 percent, space that will be freed gory has proven itself a performer, and brands and retailers as Guess replaces tailored jackets, pants and skirts, as well as are counting on that momentum to carry through the fall. fancy shirts and dresses. However, dresses will still appear in The women’s denim market managed to grow for the holiday collections. 12 months through March, according to The NPD Group, The company’s focus is now on a midtier price zone between a market research fi rm. Women’s jeans sales totaled $8.03 $108 and $148, which co-founder Paul Marciano believes will billion during that time, a 4.6 percent increase over the enable Guess to grab market share from other labels. The com- $7.68 billion reported in the same period the previous year. pany reopened its SoHo fl agship in Manhattan over the July 4 In comparison, overall sportswear sales fell 3.1 percent weekend, redesigning the space to help push denim. to $72.51 billion from $74.81 billion. The number of jeans “We feel denim is in the roots of our brand and our compa- sold also increased, rising 6.4 percent to 342.6 million from ny, so it is very well represented,” said Carlos Alberini, presi- 322.1 million. dent and chief operating offi cer of Guess Inc. For fall, brands and retailers are looking to capitalize There’s also been a strong move toward washed out and on a style shift towards vintage and distressed looks to distressed looks. Brean Murray, Carret & Co. retail analyst build buzz in the category. Several major retailers are also Eric Beder said the shift is already evident in stores. looking at fall denim collections as a way to reassert them- “Although overall newness remains limited throughout the selves as go-to denim authorities. premium denim segment, we are seeing increasing evidence Gap Inc. will introduce an overhaul of its denim offerings that there has been a shift back to destroyed denim, with rips Looks from next month as part of the company’s makeover effort. The and tears becoming more of the mix at key players,” Beder Gap’s 1969 new 1969 Premium Jeans collection was unveiled in April, said in a June 29 mall report. Premium and is designed to refl ect current trends. Beder believes this will benefi t one premium player in partic- Jeans. “We’ve been going through every category and asking ular. “Given True Religion’s initial success as a destroyed denim ourselves, ‘Is it right for today?’” Patrick Robinson, Gap’s pioneer, we believe this bodes well for the company,” he said. executive vice president of design, told WWD in April, Beder has also found consumers reacting strongly to dis- noting that revamping denim has been his priority. “Gap is the iconic American tressed denim at teen retailers like Abercrombie & Fitch and American Eagle. Getting brand, so you start with jeans and T-shirts.” consumers to pay full price for it is proving diffi cult in the summer, which could be a Robinson enlisted a team of premium denim experts from lines in the $150 to $500 bad sign for fall. range and challenged them to apply their skills within Gap’s price parameters: under The distressed trend has already worked its way through the denim pricing spec- $60. The results include a range of styles, including the hallmark women’s always skin- trum. While discussing second-quarter earnings results on Tuesday, Levi Strauss & ny jeans and the now ubiquitous boyfriend jeans, and men’s skinny and straight cuts, as Co. president and ceo John Anderson said the company was seeing consumers gravi- well as some extras, such as denim shoes by Pierre Hardy, hats by Albertus Swanepoel tate towards two distinct styles. and tops. The major message is bottoms with a focus on fi t. “The consumer, depending on the wearing occasion, is either wearing a clean, “Across the board, we want it to feel sexy and authentic,” Robinson said. more polished fi nish or going to the opposite extreme,” Anderson said. Glenn Murphy, Gap’s chairman and ceo, made it clear in a conference call with He added that straight and skinny styles continued to be the dominant trend. analysts in May that he was counting on a strong denim showing. Anderson also believes Levi’s stands to benefi t in the current environment. “Our heritage category is denim,” he said. “It’s nice to come back every now and “I think consumers are going back to brands they trust, brands they know, brands then and reclaim your rightful position and make some noise and let people know they can rely on,” he said. “We clearly align with those consumer expectations.” that not only do you have the fi t and the washes and the selection people are looking However, Robert Hanson, president of Levi Strauss Americas, remained cautious for, which is obviously critical in this business, but I think there’s also a good value about his outlook for the b-t-s season. While not providing specifi c guidance, Hanson message when it comes to Gap.” said retailers were adamant about keeping inventories low, as they have been for Guess is employing a similar strategy. This spring, the company said it would look some time. to turn consumers’ attention back to Guess’ denim heritage. As part of that effort, Levi’s is responding by working with its wholesale customers and positioning itself management hopes to take advantage of shifting consumer spending habits by tailor- to respond quickly if sales should be stronger than expected.

concurrent with their weak fi nancial performance. This market segment continues to Income and Sales Slip at Joe’s Jeans have the most diffi cult time in this economic climate.” Crossman said many boutiques are making their purchases for the spring and By Matthew Lynch holiday seasons and that reorders have been down in the channel. He added that department stores sales were better and that Joe’s had made sales gains at Saks Fifth A DECLINE IN ITS WOMEN’S BUSINESS, ESPECIALLY IN THE SPECIALTY Avenue and Bloomingdale’s. market, dragged on second-quarter sales and profits at Joe’s Jeans Inc., the com- On the conference call, chief fi nancial offi cer Hamish Sandhu said Joe’s had im- pany said Wednesday. proved its gross margin in the quarter to 51 percent from 47 percent a year earlier, large- In the three months ended May 31, net income at the Los Angeles-based premium ly due to sales at its own stores and increased production in Mexico and Morocco. denim fi rm fell 17.8 percent to $1.3 million, or 2 cents a diluted share, from $1.6 mil- The company said rent costs related to fi ve new stores pushed selling, general and lion, or 3 cents a share, in the year-ago period. Sales in the quarter fell 4.3 percent to administrative expenses up 8.3 percent to $6.9 million from $6.4 million. $17.2 million from $18 million in the comparable period. For the six months, the denim fi rm’s profi ts increased 10 percent to $2.1 million, or “Our women’s specialty store business experienced the most diffi culty this quar- 4 cents a share, from $1.9 million, or 3 cents a share, in the year-ago period. Sales in ter,” president and chief executive offi cer Marc Crossman said on a conference call the fi rst half grew 1.5 percent to $33.7 million from $33.2 million a year ago. Sandhu with analysts. “While our Anthropologie business remained quite healthy, the major- attributed the year-to-date sales gain to growth in the company’s men’s and interna- ity of our small, independent boutique purchases were down from the previous year, tional business, as well sales at its signature stores. 8 WWD, THURSDAY, JULY 16, 2009 WWD.COM Wal-Mart to Launch Green Product ‘Index’ Gary Locke By Sharon Edelson vestment. If Wal-Mart can help factories become more efficient, it can pass on better pricing. How will facto- Wal-Mart is expected to introduce an ries be rewarded? Maybe they’ll stay in business.” es

index that would determine the social and environ- Wal-Mart today is expected to announce a sustain- g ma mental impact of all the products it sells today during ability consortium led by the University of Arkansas I a Web cast of its Sustainability Milestone Meeting. and Arizona State University. Consumer goods compa- The index could help buyers decide what items to nies such as Procter & Gamble Co. and Unilever are put in stores; consumers referring to the index could said to be partners in the consortium. Several of Wal- ress/Getty see how brands compare in the sustainability depart- Mart’s large apparel resources also knew of the index. P ment. The move has lots of implications, including po- A Levi Strauss & Co. spokesman said the company is aware tentially higher costs for manufacturers. There could of the program, adding, “It’s an area we’re spending time on.” also be more competition among brands for shelf space “This piece is a work in progress, so we’re still as manufacturers vie for higher rankings. gathering and understanding the details,” said Cindy

“The impact Wal-Mart will have with the green ini- Knoebel, a spokeswoman for VF Corp. “We’re highly en- ChinaFoto photo by tiative is profound,” said Norma Kamali, who designs gaged with [Wal-Mart] as it relates to their overall sus- a collection using organic cotton and synthetic fibers tainability initiative. We’ve very well connected with the for the retailer. “I am proud to be a part of this and sustainability people there and up to speed with what Commerce Secretary Locke to know that the overall results will, by example, show Wal-Mart is doing in this area. We support their sustain- how this can be achieved. Hopefully, all com- ability efforts and are absolutely on board.” panies will implement similar initiatives General Electric’s As for Wal-Mart’s goal of making the index spiral CFL bulb. Outlines Key Issues in China so that our children will benefit from the available to shoppers, Knoebel said, “Giving results. Clearly, new innovative opportuni- consumers information to make an informed By Kathleen E. McLaughlin ties will emerge as we all participate in the choice is always a good thing.” greening of our planet.” VF has been discussing the subject with BEIJING — China must do more to open its domestic mar- Asked whether the initiative will add costs Wal-Mart for at least a year, Knoebel said, add- kets to U.S. goods, services and investment as the coun- for manufacturers, Kamali said, “That is a very ing that the retailer has been reaching out to tries seek to combat the global economic crisis, U.S. general question, since in some cases it can be a suppliers and trying to understand their con- Commerce Secretary Gary Locke said on Wednesday. savings…say, to use recycled materials. Perhaps cerns. “Wal-Mart has been supplying us with Locke, on his first official visit to China, said U.S.- the initial setup for new methods of manufactur- best practices and guidelines for supply chain China relations were the most important trade rela- ing might be a cost added, but long-term, it cer- management,” Knoebel said. “We’ve passed tionship in the world, and he outlined crucial issues tainly will be a benefit. But don’t forget that the those guidelines on to our factories.” to be jointly addressed. Chief among them are climate opportunity to innovate and create new business- There are some unanswered questions, such change; working to lower China’s trade surplus and es focused on green methods will certainly be an as, How will progress be measured? “There are increase its domestic consumption; speeding up cur- added benefit, especially to our economy.” still some details to come,” Knoebel said. “This rency reform, and avoiding protectionist policies amid Scott Mackinlay Hahn, co-founder of the will take a period of time to digest.” the financial crisis. eco-friendly Loomstate brand, which manufac- Wal-Mart has taken the lead on environmental Locke spoke directly on China’s recent central tures a less expensive version for Target called issues in the past. The retailer in October held a sus- directive to local governments that they must avoid Loomstate for Target, said the index is a step in tainability summit in China with the goal of driving in- buying imported products for use in economic stimu- the right direction. novation and sustainable business practices through- lus projects, unless absolutely necessary. The “Buy “I don’t know the criteria of the index,” Hahn out the company and those of its suppliers. The summit’s China” policy, revealed a few months after China said. “Overall, it’s really good. This is about a retailer lofty objectives included building a world-class, high-val- went after the U.S. for a softer American version, has holding its suppliers accountable for the impact it has ue sustainable supply chain. In February 2008, Wal-Mart sparked concern over its potential to turn into a larger along the chain. It’s the responsibility of the retailer announced a partnership with the National Governors trade dispute. to understand what it’s asking suppliers to do and how Association intended to reduce overall energy consump- “A freer trade environment should also be accom- that will affect their business.” For example, retooling tion of state capital complexes. Wal-Mart’s environmental panied by a recommitment to enforcing international costs can carry from cotton farm to fabric mill to sew- experts would audit state capitals as part of the plan. trade laws and agreements,” Locke said in a speech at ing facility. “You need to know what’s going on with the Wal-Mart tried to impose its Radio Frequency the American Chamber of Commerce in China. “The products you’re making,” Hahn said. “It’s basically a Identification Program on suppliers, but encountered line between advancing important domestic priori- compliance vehicle. This is about transparency and resistance because implementing the RFID program is ties and protectionism can be blurry, and we should giving customers visibility as to what’s going on.” so expensive. work to avoid crossing that line. Unfairly subsidizing Suppliers will have to begin technically reporting “The index is different,” said Hahn. “Wal-Mart has been domestic companies or denying multinational compa- the kind of energy being used to power their factories, buying cotton farms and shifting them to organic cotton. nies access to local markets and government procure- the types of dyes and fabric they’re using. “It gets very This is part of their global paradigm. If they don’t protect ment contracts has the potential to be a serious threat technical,” Hahn said. “When consumers get educated, national resources and the environment, they won’t have a to trade cooperation.” they’ll understand that it costs more in the near term market. They’re actually being aggressive about it, fish to In Washington, the International Trade Commission to bring a sustainable product to the shelves. It’s an in- jewelry to clothing to energy. They have such an impact.” said Wednesday, it has initiated the first trade rem- edy investigation of textile products from China since quotas were lifted at the end of last year. The ITC said in a Federal Register notice it received a complaint on July 9 that “narrow woven ribbon with woven sel- Burberry Sales Up in First Quarter vedge” from China and Taiwan was being dumped into the U.S. market or is being subsidized in ways that in- By Samantha Conti said that, worldwide, it plans to increase its average sell- jure U.S. companies. The petition, filed by Berwick ing space 10 to 12 percent in the year as a whole. Offray LLC and subsidiary Lion Ribbon Co., refer- LONDON — First-quarter revenues at Burberry Group plc Wholesale revenue in the quarter fell 21.3 percent enced the lifting of the textile and apparel quotas as got a boost from the strong euro, new store openings and to 63 million euros, or $97.7 million, from 80 million a key factor. sales of accessories and outerwear, rising 8.5 percent to euros, or $124 million. A public hearing on the matter is scheduled for 229 million pounds, or $478.9 million, from 211 million The wholesale decrease in the quarter was due to July 30, after which the ITC will issue its decision on pounds, or $327.1 million, in the year-ago quarter. a combination of factors, including the closure of the whether there is sufficient injury to the U.S. indus- Burberry chief executive officer Angela Ahrendts Thomas Burberry line, the rationalization of small, spe- try for the case to proceed. A determination should said in a trading update Wednesday Burberry had cialty accounts in Europe, the conversion of Burberry be made by the end of next month, according to an made a “solid start” to the year in a challenging envi- Middle East from wholesale to retail, and clients read- ITC spokeswoman. ronment. She added the company was “well-placed to justing their inventory levels. Locke said he would meet with Chinese officials deliver sustainable long-term growth.” Following this trend, Burberry is projecting a 25 to discuss issues such as protection of intellectual Retail sales in the three months ended June 30 rose percent fall in wholesale revenue, at constant exchange property rights, technology transfers to China and 28.7 percent to 148 million pounds, or $229.4 million, from rates, in the six months to Sept. 30. the need for improvements to China’s legal system. 115 million pounds, or $178.3 million, because of new Cartwright said the reduced inventory levels were On trade issues, he pressed China to move ahead with store openings worldwide and to double-digit growth in good in the long run. “It means the risk of end-of-sea- reforms to open domestic markets to U.S. goods, ser- Europe and Asia — especially the U.K. and Korea. son markdowns is significantly reduced.” vices and investment, saying international trade pacts Dollar figures have been calculated at average ex- Overall, she said, consumers were going for invest- must be honored. change rates for the three-month period. ment pieces, such as bags, shoes and soft accessories to “If China allowed for greater flexibility in its ex- Stacey Cartwright, executive vice president and update their wardrobes. Outerwear, she said, remains change rate and further opened up its domestic mar- chief financial officer, said in an interview that the core of Burberry’s sales. kets for imports and foreign direct investment, it Europeans had been spending in Burberry stores In a note on Wednesday, Thomas Chauvet of Citigroup would accelerate the world’s return to growth,” Locke across London — from the Bond Street flagship to the Global Markets said Burberry’s retail figures were bet- said. “Foreign investment can create jobs for Chinese new Westfield shopping mall to the airport shops — ter than expected, thanks to a good response from the workers and it can do the same for Americans, which taking advantage of the strong euro. spring 2009 collection, especially in accessories and is why the American government welcomes Chinese Burberry also saw a spike in sales in Korea. new product categories. direct investment in the United States.” Cartwright said Koreans are increasingly staying home Citi had projected sales to be 144 million pounds, or Locke said U.S.-China relations were strong, but because of the nation’s weak currency, the won, and $223.2 million, compared with Burberrys’s 148 million need to evolve. He noted China had a $270 billion buying their Burberry merchandise in local currency, pounds, or $243 million. However, Burberry’s overall trade surplus with the U.S. and American consumers which is more cost-effective. revenue came in under Citi’s forecast of 236 million can no longer afford to spend beyond their means on The U.S. and Spain remain difficult, the company said. pounds, or $365.8 million, because of smaller-than-ex- Chinese-made goods, a cycle that helped to create the “Our own retail in the U.S. has been hit, but from what pected wholesale growth. world financial crisis. we’re hearing anecdotally, we are performing better than Licensing revenue in the quarter rose 12.5 percent “The United States and China will continue to have our peers and taking market share,” Cartwright said. to 18 million pounds, or $27.9 million, from 16 million our differences, but we are having differences as ma- Comparable store sales in both the US and Spain pounds, or $24.8 million, due to currency benefits and ture partners,” he said. showed “double-digit” decreases in the quarter. Burberry timing differences in royalty receipts, mainly in Japan. — With contributions from Liza Casabona, Washington WWD, THURSDAY, JULY 16, 2009 9 WWD.COM College students have gotten a recession-era wake-up call with the slowdown in campus recruiting. “The entire landscape has changed,” said Claudia Tattanelli, chief executive officer of global employer branding firm Universum USA, which recently released its TheWwDList annual ranking of companies students consider to be ideal employers. More than 2,000 undergraduates who said they were interested in the fashion, retail and apparel sector were surveyed. The majority of the top 10 firms have recruiting programs. “It’s not about working for the most prestigious firm any longer,” Tattanelli said. “It’s more about networking with firms who are heavily recruiting on campuses, who are offering the jobs Doing Their Homework and who are financially stable. This is a new crop of recruits. A few years ago, students were interested in building their résumés and only staying with a firm for a couple of The ideal employers chosen by undergraduate students interested years. These students today…they’re looking for more longevity with a company, and they in the fashion, retail and apparel sector. want to be motivated through company training and programs.” — Cecily Hall MACY’S Students interested in the retail/fashion/apparel sector who said this was an ideal employer: 21.8 percent The awareness of this brand is high, thanks to its 800-plus locations nationwide. And because Macy’s also features young juniors brands such as Baby Phat, Roxy, Guess and Rocawear throughout its department stores, it scores highly with students who are interested in fashion. Macy’s Inc. also employs a diverse workforce of about 167,000 employees. The college recruiting program features an approach of “one company-two brands,” 1 with Macy’s and Bloomingdale’s recruiting together. “This year, Macy’s Inc. will hire approximately 700 full-time students into our executive development programs from more than 90 schools,” the company said. “They have really taken the opportunity to strengthen the program — they’re telling students, ‘Have a career with us, we’ll train you, we’ll help you relocate,’” Tattanelli said. WALT DISNEY 21.5 percent “A company built on imagination and wonder means the work will be interesting,” according to the Disney Web site. Who doesn’t dream about being part of the Disney family from an early age? What people may not know is that, in addition to its theme parks, The Walt Disney Co. operates media properties such as ESPN, ABC and The Disney Channel, Pixar (film) and other consumer products. For students, the company designs a 2 variety of unique programs and services, including the Disney College Program, Professional Internships and Disney CareerStart Program — which combines classroom and work experience, networking with Disney leaders and custom-designed educational opportunities for recent high school graduates. Employee perks include complimentary theme park passports and educational reimbursement. COACH 19.1 percent This New York-based brand has reached out to the younger set with many of its collections, and it’s paying off: Students interested in fashion can’t get enough of Coach. “While Coach isn’t the biggest campus recruiter, it remains one of the biggest brands out there for students interested in fashion, and they love it,” said Tattanelli. In addition to its 400 Coach stores in the United States and Canada, products are available at more than 3 900 department store locations in the U.S., 167 international department stores, and numerous other retail store and duty free shop locations in more than 20 countries. Coach has a heavy presence on Facebook, with more than 325,000 fans of the brand. Fans are eligible to receive special products exclusively through Facebook. CALVIN KLEIN 17.8 percent This Phillips-Van Heusen Corp.-owned brand is one of the largest fashion labels in the world. The Calvin Klein name offers women’s and men’s designer collection apparel, along with a range of other products, which include accessories, shoes, sleepwear, hosiery, socks, swimwear, belts, eyewear, watches, jewelry, coats, suits and fragrances, as well as products for the home. The “PVH Career Start Internship Program” is a 10-week 4 paid internship experience for college students in the firm’s offices in Manhattan and in Bridgewater, N.J. Students are placed in a department as active associates to receive hands-on training and experience. Interns participate in formal training classes and work on a final team project. Perks include networking events, training and development seminars, summer hours and associate discounts. GOOGLE 16.9 percent The average age of a Google employee is said to be just below 30, which might explain much of the company’s appeal. While this Mountain View, Calif.-based online search engine may not focus solely on fashion and apparel, students interested in the sector still think it’s fashionable to work here. In addition to photos and videos of employees at various company branches, Google’s Web site also offers a “Top 10 Reasons to Work at 5 Google” feature, along with “Benefits of Working at Google” and “Google Celebrates Diversity” sections. The “Student Jobs” section features internship and professional opportunities for students around the globe. Other resources within the section include a program on how to prepare a résumé, along with interview tips. APPLE COMPUTER 16.7 percent Since this Cupertino, Calif.-based computer giant works hard to market its products to college students (offering special education pricing on Apple computers, software and select third-party products to students), it makes sense that brand awareness remains high among this segment of the population. From the iPhone to the MacBook, Apple has some of the most fashionable products on the market. The company’s Web site devotes 6 a section to college graduates, titled “Getting Hired as a New Grad.” The section asks, “Are you about to graduate from college or graduate school? Did you graduate in the past year? Apple is hiring new grads.” The section also features young graduates discussing their work experience for the company. Apple is offering positions from retail to finance to engineering to marketing. TARGET 13.5 percent Featuring hip — and affordable — brands such as Mossimo and Xhilaration, the Minneapolis-based retailer features an extensive career section on its Web site. In the “Careers by Major” section, Target provides internship information and detailed job descriptions based on students’ actual chosen college majors (including Fashion Merchandising, Design, Marketing and Supply Chain Management). “Hot Jobs for Undergraduates” is 7 devoted to current openings nationwide. And “Resources for Candidates” answers some of the most frequently asked questions from students, like how to prepare a résumé, interview tips and the best way to apply for an open position.

L’OREAL 13.4 percent This beauty giant’s brand portfolio includes some of the most well-known skin care and beauty names: Kiehl’s, Lancôme, Maybelline, Redken and Shu Uemura, among others. “L’Oréal has remained strong in the rankings, because they continue to develop and grow their leadership programs for undergraduates and graduate students,” said Tattanelli. L’Oréal Brandstorm is a program that invites top students from business schools to 8 invent a new product for a L’Oréal brand, right from its creation up to the packaging, including the communication strategy. This year, for example, the challenge was to create the first fragrance for the Maybelline New York brand. “Students who participate really get a sense if this company is the right fit for them,” said Tattanelli. NIKE 12.7 percent Students aren’t the only ones who have taken note of Nike’s business: In the last three years, the world’s largest sports and fitness company has been named to Fortune Magazine’s “100 Best Companies to Work For,” and for the last two years, it was named to Business Week’s “Top 100 Best Places to Launch a Career” list. Internships for students vary by region and feature opportunities ranging from product design, product 9 development, finance, sports marketing, and logistics to facility management and human resources. In the U.S., for example, Nike offers students paid internships with access to all of the other employee perks: While working at the world headquarters, students have access to athletic facilities, along with an employee discount. GAP 11.7 percent The San Francisco-based company, which also operates Old Navy and Banana Republic stores, said it offers “a wide range of training programs and opportunities for recent college graduates and those looking to gain valuable ‘real world’ experience while still in school.” For example, Gap’s Retail Management Program is a nine-month training initiative offering students exposure to principal areas of business through special projects 10 and rotations in different departments. And the Manager-in-Training Program is an eight-week in-store effort providing comprehensive training and development for college graduates interested in store management. Upon successful completion of the program, participants are assigned to manage an Old Navy store. Internships are also offered every summer for undergraduate and M.B.A./graduate students. source: UNIVERSUM USA’S 14th Annual “Employer Branding & Universum IDEAL Employer” SURVEY; 60,930 STUDENTS WERE SURVEYED — 2,060 OF THESE RESPONDENTS WERE interested in retail/fashion/apparel SECTOR 10 WWD, THURSDAY, JULY 16, 2009 WWD.COM Gainsbourg to Front Balenciaga Scent FASHION SCOOPS DRESS, AND REPEAT: Carla Bruni-Sarkozy selected a white cashmere cocktail dress by Dior for the official Bastille BEAUTY BEAT Day parade in Paris on Tuesday. But a By Rachel Brown Gainsbourg has been attached change of dress for the Elysée garden to 30-plus film projects, includ- party proved that, rather like another Nicolas Ghesquière and ing “My Wife Is an Actress” and high-profile First Lady, Bruni-Sarkozy Charlotte Gainsbourg are teaming “The Science of Sleep,” and was is no prisoner of the latest season or up to enliven the Balenciaga fra- feted with the best actress prize, wearing the same dress twice. The grance franchise. called the Palme d’Or, at Cannes fashion icon changed into a déjà vu The Balenciaga creative direc- this year for her portrayal of a tor- monochrome dress from Chanel’s tor’s debut fragrance is launching tured grieving mother in the movie 2008-’09 cruise collection that she worldwide in February next year “Antichrist” directed by Lars von wore to a Hadassah fund-raiser in Paris and the French actress and musi- Trier. Gainsbourg has released two this March. cian will be the face of the adver- albums — “Charlotte for Ever” was tising. Balenciaga signed on with her first, which was followed by TALK TO THE HAND: “You used to go licensee Coty Prestige last year to “5:55” 20 years later — and is work- to see Christian Dior in Paris to have develop fragrances. ing with Beck on an album due out a dress made, but now you can go to Gainsbourg, who is in Los late this year. Roland Mouret in your hand,” said v Angeles to shoot the fragrance ad Balenciaga has a long history in Natalie Massenet, the founder of Net- o campaign and for a party today to the fragrance business, and its pre- a-porter.com at the launch of the NET- introduce her new role, is no strang- miere aldehydic scent Le Dix was APP iPhone application at the Apple /Land er to Ghesquière and PPR-owned released in 1946. Of late, Balenciaga Store on Regent Street in London on ppp Balenciaga, which is part of the has been relatively quiet in the fra- Tuesday. “I thought Natalie was crazy Gucci Group. She replaced Jennifer grance world and let its licensing when she first came to speak to me deal with Groupe Jacques Bogart about Net-a-porter and now I realize Connelly last year to front the fall Max PHOTO BY fashion advertising and has (a division of Cyprus-based firm that I was the crazy one,” said Mouret Carla Bruni-Sarkozy and Nicolas Sarkozy during the Bastille Day been close with Ghesquière C.A. Papaellinas & Co. Ltd.) during a discussion with Massenet celebrations in Paris. for more than a decade. expire last year before con- about the evolution of fashion and “My friendship with necting with Coty Prestige to technology. Their conversation will be available to download from net-a-porter.com next week. The NET- Nicolas Ghesquière, our restore the brand as a fra- APP is updated with new products and content every Monday and Wednesday, and allows customers to buy bond made of mutual ad- grance force. from the site without having to reenter their payment details. “This is taking multitasking to the next level. miration and complicity, Gainsbourg, a fashion Women can now shop anywhere on the fly,” said Massenet. grew so strong over the favorite who is already years that I was secretly a recognizable star in TOLEDO GETS FOLKSY: Isabel Toledo’s crackerjack year is still gaining momentum. Michelle Obama’s go-to hoping to be the face of Europe and is gaining designer for the inaugural will be celebrated by The American Folk Art Museum at a July 22 benefit at Nicolas’ first perfume popularity elsewhere, trustee Stephen Corelli’s TriBeCa pad. Meanwhile, “Isabel Toledo: Fashion From the Inside Out” has been for Balenciaga,” said gives Balenciaga a cred- reeling in the crowds even on Saturdays and Tuesday afternoons, which are not exactly prime time for Gainsbourg, who is the ible face to make a global museum outings in the summer. Many are in search of the showstopper — the First Lady’s lemongrass- daughter of French icons statement in line with its hued ensemble that Toledo designed. “It’s like Mecca. Everyone wants to see it,” said the museum’s Jane Birkin and Serge fragrance ambitions. deputy director Patricia Mears. Gainsbourg. “I have the But Catherine Walsh, feeling that the house of senior vice president of TAKE A HIKE: Oscar de la Renta’s pitchman Paul O’Regan will be tackling something far more daunting than Balenciaga has become marketing for American any fashion editor this month — Mount Kilimanjaro. O’Regan and friends Anton Kaszubowski and Semjon my second home.” licenses at Coty Prestige, von Doenhoff will be making the trek in Tanzania to raise awareness and money for Charity: Water, which Ghesquière, who de- explained the choice builds freshwater wells. Their goal is to raise $1 for every foot of Kilimanjaro, which is 19,340 feet. In scribed Gainsbourg in of Gainsbourg was based doing so, they would be able to provide 2,000 people with clean drinking water for 20 years, O’Regan WWD last June as “one of upon her relationship with said via e-mail. Well aware that any good executive is never truly out of touch, O’Regan journey will be the most inspiring girls in Ghesquière and not on her chronicled at charitywater.org/pages/climbingkilimanjaro. the world” and “really rep- mounting fame. resentative of what France is “It was less about who HERRERA LANDS IN LONDON: Carolina Herrera is the latest fashion label to launch on Mount Street. In today,” declared she personi- can we get to endorse it and early September, the brand plans to open a 1,900-square-foot store at 120 Mount Street that will carry fies his upcoming fragrance. was more about developing all of the collections. The Mayfair street is already home to brands including Lanvin, Marc Jacobs, Annick “Her unique sense of style, her a fragrance around her and Goutal, Christian Louboutin, and Stephen Webster, who cut the ribbon on his store earlier this week. graceful and intense talent have Nicolas’ thoughts. She is going Goyard, meanwhile, will open its first stand-alone unit outside Paris on Mount Street later this summer. always been very inspirational to be involved,” she said. for me,” he said. “This fruitful “She is so associated with the INDIAN SUMMER: Jewelry designer Marie-Hélène de Taillac will pay homage to Jaipur — her base in India and long-standing relationship house and she has never done for the past 12 years — in an upcoming exhibition at Paris’ Le Bon Marché department store. For “Love Charlotte has with me and the a fragrance campaign. For us, from Jaipur,” running Nov. 14 to Dec. 31, de Taillac has gathered a range of stylish items by contemporary house of Balenciaga gives all Charlotte it was less of a commercial ini- Indian designers, including glitter coats by Namrata Joshipura; jewel-embroidered tops by Rabani & its meaning to this project.” Gainsbourg tiative.” Rakha, frocks by Varun Sardana and a dress and matching bags by Manish Arora. A selection of India- themed goodies by de Taillac will also be available, such as cashmere boleros, monogram travel bags and stationery.

GOOD DAY SUNSHINE: The weather gods smiled upon David Yurman Tuesday night as the designer hosted his Fashion Fund Finalists Named annual summer rooftop soiree at the firm’s TriBeCa offices. Fans of the brand mingled in the setting sun By Marc Karimzadeh along with the Yurmans, whose latest addition, granddaughter Cody, was the subject of much cooing from guests. When asked how he was enjoying his summer, the jewelry designer laughed and pointed to the east NEW YORK — The Council of Fashion Designers of America and Vogue maga- side. “Summer is that way,” he said, gesturing towards his new home on Long Island. “We just have to zine have named the 10 finalists for this year’s CFDA/Vogue Fashion Fund. figure out how to air condition it. Other than that, I’m just chasing my horses around as usual.” They are Sophie Théallet, Flora Gill and Alexa Adams for Ohne Titel; Natalie Chanin for Alabama Chanin; Patrik Ervell; Waris Ahluwalia for ERDEM DRESSES SMYTHSON: Following a successful collaboration with Giles Deacon earlier this year, House of Waris; Wayne Lee for Wayne; George Esquivel for Esquivel Shoes; Smythson has called on Erdem Moralioglu, who designs under the label Erdem, to create a collection of Gary Graham; Monique Péan, and Simon Spurr for Spurr. notebooks and diaries for the fall. The Turkish-British designer, known for his whimsical watercolor prints, The CFDA/Vogue Fashion Fund Selection committee will meet with each has covered Smythson’s leather-bound notebooks in abstract floral prints taken from his 2010 resort designer this month to review their most recent collection, and the winner collection. The books feature orchids, poinsettias and geraniums in a palette of cornelian, white and and two runners-up will be announced at a gala on Nov. 16. midnight blue. “The collection is about Japonism, but a kind of Japonism décontracté,” said Moralioglu. The selection committee consists of the CFDA’s Diane von Furstenberg, “It was before a trip I took to Japan so I was kind of channeling something of what I dreamed it would Steven Kolb and Lisa Smilor; Vogue’s Anna Wintour and Sally Singer; be like.” The collection, which goes on sale in November, will also include the 2010 Panama and Soho Theory’s Andrew Rosen; Gap’s Patrick Robinson; Coach’s Reed Krakoff; diaries bound in cream leather with an illustrated look from the designer’s fall collection on the cover. Barneys New York’s Julie Gilhart, and Jeffrey Kalinsky of Jeffrey New York Prices are yet to be confirmed. and Nordstrom. The fund’s winner will receive $200,000, and as much as $50,000 will go BRITS MARCH ON PARIS: The largest-ever group of British fashion houses will stage exhibitions during the to each of the two runners-up. Paris ready-to-wear collections as part of the Carrousel de la Mode — and they’re even getting their own As in previous years, the fund offers each finalist guidance through its Web site. UK Fashion Exports, the trade association that offers practical help to exporters, has set up a Business Advisory Committee, which consists of Diane von Furstenberg’s dedicated Web site, ukfashionexports.com/britsinparis, for international retailers and press interested in Paula Sutter; Calvin Klein Inc.’s Tom Murry; Cole Haan’s James Seuss; A|X buying British. The site will go live at the end of July and carry images of the 150 collections on show as Armani Exchange’s Harlan Bratcher; Liz Claiborne Inc.’s David McTague; well as a map illustrating the locations of the British designers’ stands. Labels including Rupert Sanderson, Karen Harvey Consulting Group’s Karen Harvey; Richard Dickson of the Avsh Alom Gur, The Jacksons and La Petite Salope are among the 150 companies exhibiting in September. Barbie Brand at Mattel; American Express’ Maryann Fitzmaurice; Hand, Baldachin & Amburgey LLP’s Douglas Hand and Angela Gordon & Co.’s COS LANDS IN SPAIN: COS, the high-end clothing and accessories line from Hennes & Mauritz, will open a Pamela Thomas Graham. 6,460-square-foot, two-story store on Barcelona’s Paseo de Gracia in October, the brand’s first location in Founded by the CFDA and Vogue six years ago, previous winners are Spain. Paseo de Gracia is known for its luxury boutiques, and labels including Chanel, Jimmy Choo and Alexander Wang, Rogan Gregory of Rogan, Doo-Ri Chung, Trovata and Burberry all have stores on the street. Proenza Schouler’s Lazaro Hernandez and Jack McCollough. “Spain and Barcelona mark a noteworthy step in our expansion and…complement our current stores The fund is sponsored by Gap, and underwriters are American Express, and markets,” said Pernilla Wohlfahrt, brand director at COS. COS, which is known for its spare, simple Appleman Foundation, Barneys New York, Coach, Evgeny Lebedev, Hudson designs, has 16 stores in countries including the U.K., Germany, France and Denmark. The label, which Bay Trading Co., Juicy Couture, Kellwood Co., Liz Claiborne Inc., L’Oréal launched in 2007 with a store on Regent Street in London, also is expected to open four stores in existing Paris, Nordstrom, Theory and Vogue. markets in the fall.

12 WWD, THURSDAY, JULY 16, 2009 WWD.COM

MEMO PAD White and creating new Senate Panel Passes Health Care Bill MONEY CROWD: French luxury poses on the spot. “I love By Kristi Ellis titans Bernard Arnault and François fashion and this is fun for Pinault are together at last — on me,” Patrick told WWD. “I WASHINGTON — The Senate Health, Education, Labor & Pensions the cover of this week’s issue like getting done up and committee on Wednesday became the first congressional panel to of French business magazine showing a different side.” approve landmark health care reform legislation. The plan would Challenges. Its annual ranking The 27-year-old is also establish employer mandates for covering full-time and part-time of the country’s biggest fortunes on Twitter and her page workers, a concept that has divided the retail industry. put Arnault (14.58 billion euros) is sponsored by Tissot, Voting on strict party lines, the committee approved the mea- in second place, under Gérard although Buntain said the sure 13-10. The estimated cost of the bill would be $600 billion Mulliez, founder of supermarket brand has no influence over over 10 years. However, President Obama is urging Congress to giant Auchan (15 billion euros). what Patrick writes day to craft legislation to include measures to offset the cost. The House L’Oréal shareholder Liliane day. “It’s a great way to show introduced its health care reform bill on Tuesday, which also in- Bettencourt comes in third my personality, unfiltered and cludes an employer mandate. (10.07 billion euros), the Hermès on my terms,” Patrick said. The Senate bill, part of broader reform legislation, would family in fourth (7.68 billion She now has nearly 29,000 assess a $750 annual fee per full-time employee not covered by euros) and Pinault in sixth (4.95 followers. — Amy Wicks an employers’ health insurance plan and $375 fee per part-time billion euros). Also making the worker not covered if the employer does not meet the 60 percent top 10 is Alain Wertheimer and IT’S OK NOW, SPEND: It’s clear monthly premium coverage threshold. Companies with fewer family, owner of Chanel, at No. retailers need consumers to than 25 employees would be exempt from the fees. It would also 10 (3.5 billion euros). feel at ease about shopping, establish a government-run insurance option. Meanwhile, the cover points but consumers are hard pressed Much of the retail industry opposes the decision by Wal-Mart to a four-page article inside to find emotional comfort from Stores Inc. to support the concept of employer mandates. The issue describing the recent détente spending money on luxuries in has pitted the National Retail Federation against Wal-Mart. The between Arnault and Pinault, the dismal economy. “Whether NRF, which includes such members as Macy’s Inc., J.C. Penney Co. with the war over Gucci well behind them. you have $10,000, $200, or Inc., J. Crew Group, Limited Brands Inc. and Neiman Marcus Inc., It credits Arnault’s wife, Hélène, for taking the first $1,000, people are sitting on that money, and then took an aggressive stance opposing Wal-Mart’s position in a letter steps to break the ice, warmly embracing Pinault’s looking at it eight ways before they spend it,” said to its members. The more mass market-oriented Retail Industry wife, Maryvonne, at a charity event last November. Susan Plagemann, vice president and publisher of Leaders Association, of which Wal-Mart is a member, has tread a Since then, the two men had lunch at the invitation Marie Claire. The magazine in September is hoping careful line on employer mandates, not opposing the concept out- of Belgian financier Albert Frère, as reported. The its booklet, “The New Way to Shop,” will give right but expressing concerns about a “one-size-fits all” approach. article also says the Arnaults invited the Pinaults fashionistas the confidence to start buying again. The Neil Trautwein, NRF’s vice president and employee benefits to dinner on May 26, but the possible topics for booklet will be polybagged with 750,000 subscriber policy counsel, said the Senate panel is “setting a low penalty conversation — art, football, wine, fashion? — are copies of Marie Claire, with 200,000 copies on bar…to ease acceptance of an employer mandate.” pure speculation. — Miles Socha newsstands beginning Aug. 15. The 100-page “We are not convinced by the low penalties in this bill that it mini issue will cover boutiques across the country, should be more acceptable,” said Trautwein. “It is a still not a bill HIS FAVORITE THINGS: Music, wine and song were including Ikram in Chicago, Heist in Los Angeles and the NRF could support.” in the air at Vanity Fair’s 4 Times Square offices V.O.D. in Dallas, various Web sites, beauty products, John Emling, senior vice president of government affairs at Tuesday afternoon to celebrate Graydon Carter’s 60th accessories and product recommendations from Jason RILA, said the organization was reviewing the committee’s bill birthday. Vanity Fair deputy editor and classically Wu, Elle Macpherson, Tory Burch and Robert Verdi. but he expressed concerns about the penalties, coverage require- trained pianist Doug Stumpf played “My Favorite Marie Claire also tapped buyers at Nordstrom and ments for part-time employees and the overall impact of the em- Things” on an electric keyboard, while staffers Sephora to provide their ployer mandate. sang lyrics written by contributing editor David picks for what to buy. “If you don’t currently offer health care and this fee is assessed Kamp, “My Graydonish Things.” Lyrics included: “The New Way to in hard economic times, that would be an additional cost for em- “Mid-cent’ry modern and books by O’Hara/ Pear Shop” is the largest ployers,” Emling said. liquer poured by Reinaldo Herrera/Mac and special issue that Marie cheese garnished with truffle shay-vings/These Claire has produced, are a few of my Graydonish Things…” Collegue carrying 40 pages of Matt Tyrnauer hailed Kamp’s songwriting as advertising from J Brand Industry Awaits Calif. Budget Resolution “charmingly goofy” on his Twitter Tuesday night. jeans, Bebe, Armani By Anne Riley-Katz and Marcy Medina Other gifts Carter received for the big 6-0 Exchange, Nine West, included a Risko caricature of himself and a Calvin Klein Jeans and California lawmakers appeared close to a deal late one-star review from the New York Times of Mango, among others. Wednesday to resolve the state’s budget crisis, which has been yet an- his midtown restaurant, The Monkey Bar. The TRESemmé bought 15 other challenge for the state’s battered retailers and manufacturers. restaurant recently swapped chefs after getting pages in the issue and Economists said the budget circus has created widespread low marks for the food when it first opened. is the official beauty uncertainty, which is a drag on the state economy, as the engines “Frank Bruni’s review in The Times was the perfect sponsor. Marie Claire of economic growth — large employers and consumers — stall nightcap to the perfect birthday,” Carter said. produced an advertorial until they can be reasonably confident the government has its One of the cheekier ideas, however, didn’t for the hair care brand house in order. quite work out. A few inspired staffers had called that includes a model “Unemployment, and just apprehension about jobs, is huge; in a seductively tight, beaded sheath dress showing looks from devaluation of real estate and inability to get a credit card are for a mystery staffer to do a kind of “Happy several up-and-coming also very big,” said Fred Levine, whose Southern California con- Birthday Mr. President” number for the celebrating designers with different hairstyles and products to temporary chain, M. Fredric, has seen big drop in sales over the editor in chief. “We called in the dress for Christopher match the mood and event. The booklet helped Marie last year. “It’s also a state of mind — the fact is that we don’t know Hitchens,” lamented a Vanity Fair spokeswoman, “but Claire increase its pages for September and into fall: if we’ve hit bottom. There’s a big psychological impact.” alas it didn’t fit.” —Stephanie D. Smith most advertisers bought placement in “The New Way Like other apparel designers struggling through the reces- to Shop” in addition to their fall schedules in Marie sion, Karyn Craven, founder of Burning Torch, a decade-old Los RACY TRACK: Danica Patrick seems as comfortable in Claire, albeit for a fraction of the cost of a page in Angeles-based contemporary apparel brand, has narrowed her an Indy racing suit as a swimsuit these days, given the flagship, given the booklet’s smaller size and focus to survive. She downsized her staff and trimmed the com- the photo shoots she’s doing for publications such as distribution. An open page rate for Marie Claire — pany’s offerings by about 30 percent, focusing on unique pieces Sports Illustrated, Shape and, now, Tissot. The Swiss before any of those pesky discussions over discounts using vintage or recycled materials. watch brand had Patrick posing in a Norma Kamali — is $116,740. — S.D.S. “If a consumer could get a piece from somewhere else, we swimsuit in the rooftop decided we didn’t need to be doing it anymore,” she said. “Even pool of Soho House in though buyers are cautious we are also seeing new customers who New York City for its new want to see something new and those returning from years ago.” campaign for the Tissot Behind the scenes at The state has been paying creditors with IOUs for only the Touch Collection. The the Tissot photo shoot second time since the Great Depression because Gov. Arnold campaign will break in with Danica Patrick. Schwarzenegger and the legislature have been unable to agree the September issue of on how to close a $26.3 billion budget deficit. GQ and run in a future Experts said any budget compromise will be painful, as cuts issue of Details. “She is to state programs trickle down to the consumer level and further the most googled female undermine consumer confidence. athlete and she is really “We know whatever the news is, it won’t be good,” said Dr. a woman in a man’s Esmael Adibi, director of the A. Gary Anderson Center for world,” said Sharon Economic Research at Chapman University in Orange County, Buntain, president of Calif. “We are all waiting to see when they get there and how, Tissot U.S. “She is the and then we have to look at the details. Nothing fundamentally is face of this collection going to change otherwise.” because she really The collapse of the housing market has been a major factor in appeals to both men and the state’s financial mess, and California’s home foreclosures in women.” She declined May were up almost 23 percent from the same month a year ago. to say whether the media The state’s 11.5 percent unemployment rate is the highest in more buy will be up or down than 30 years, and analysts and academics say the jobless rate versus last year. has an enormous impact on consumer confidence and spending Patrick was as — something that doesn’t bode well for a speedy recovery in the involved as any model Golden State. would be on the shoot, California already had the worst debt rating in the country hiking up her dress before three more Wall Street ratings firms, including Fitch and to show more leg for Moody’s, further slashed the state’s rating to just two notches photographer James above junk in recent days. 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the MAGIC MARKETPLACE K?<C8JM<>8J:FEM@JK@:FEC@E<%:FDFI8K/..%,,+%+/*+ 14 WWD, THURSDAY, JULY 16, 2009 WWD.COM Financial For full daily stock changes and more financial news, see WWD.com / business-news. Retail Stocks Ride High on Dow’s Gains By Arnold J. Karr percent in June and increased 2.5 per- cent compared with a year earlier. The 10 Best Performers and Liza Casabona increase in women’s apparel was the largest for the month of June since 1978, DAILY COMPANIES P/E Volume Amt Retail stocks rallied on according to the Labor Department. Wednesday as the broader market rose Men’s apparel prices fell 1.1 percent in High Low Last %Change to its biggest gain in three months after June, while remaining flat in 12-month Intel Corp.’s strong performance. comparisons. The S&P Retail Index picked up 8.02 The rise in retail apparel prices over- 0.70 0.61 Frederick’s of Hollywood (FOH) - 18200 0.70 +14.77 points, or 2.5 percent, to close at 330.89. all and in women’s is mostly attribut- Gains among retailers and apparel able to seasonal factors affected by the 4.92 4.42 Developers Diversified (DDR) - 3733819 4.86 +10.96 vendors were nearly universal. Fashion stark contraction of the economy, said and retail issues benefiting from the up- Charles McMillion, president and chief 2.25 2.00 Tandy Brands (TBAC) - 4834 2.20 +10.01 tick the most were Stage Stores Inc., up economist at MBG Information Services. $1.09, or 10.9 percent, to $11.12; Macy’s McMillion said sales of spring and sum- Inc., 91 cents, or 8.3 percent, to $11.93; mer goods started earlier this year, drag- 1.22 1.10 Bluefly (BFLY) - 5849 1.21 +10.00 Charming Shoppes Inc., 34 cents, or 8.3 ging prices down in previous month, and percent, to $4.45; Nordstrom Inc., $1.51, allowing a rebound in June, as some 2.57 2.30 Retail Ventures (RVI) - 157468 2.55 +9.91 or 7.5 percent, to $21.62; American fresh merchandise hit the stores. Apparel Inc., 27 cents, or 7.5 percent, to “Seasonal promotional programs 11.57 10.23 Skechers (SKX) 15.8 903313 11.44 +9.68 $3.87, and Coach Inc., $1.54, or 6.2 per- have been dramatically altered by this cent, to $26.31. severe downturn,” he said. “People are 2.97 2.73 Glimcher (GRT) - 433661 2.93 +9.33 Intel’s strong performance sent taking deeper and earlier markdowns.” the Dow Jones Industrial Average up “In general, today’s report on con- 8.37 7.92 Finish Line (FINL) 190.0 2186878 8.30 +9.21 256.72 points, or 3.1 percent, to close sumer prices suggests very little, if any, at 8,616.21, the S&P 500 was up 26.84 pressure on consumer prices other than points, or 3 percent, to 932.68, and the the temporary surge in gasoline prices,” 10.99 10.10 G-III Apparel (GIII) - 134496 10.80 +9.09 Nasdaq Composite rose 63.17 points, or said Brian Bethune, chief U.S. financial 3.5 percent, to 1,862.90. economist at IHS Global Insight. 12.11 11.11 DSW (DSW) 20.4 276287 12.02 +8.88 The Dow and the S&P 500 hit their Retail prices for women’s outer- highest levels since June. wear increased 2.7 percent in June and The rally in retail stocks came just 7.4 percent in 12-month comparisons. a day after optimism about Goldman Women’s dresses cost 2.8 percent more Sachs helped propel the major indices in June and 11.8 percent year-over-year. and pushed the S&P Retail Index to a Women’s suits and separates prices in- 10 Worst Performers gain of 1.6 percent creased 1.6 in June and 0.5 percent from The stock market appeared to shrug off a year earlier. Prices in the broad wom- DAILY COMPANIES P/E Volume Amt the Labor Department’s Consumer Price en’s underwear, nightwear, sportswear Index, which registered an overall in- and accessories category rose 1.8 per- High Low Last %Change crease of 0.7 percent in June, but declined cent in June and 2.5 percent for the 12 1.4 percent year-to-year. The monthly in- months. Girls’ apparel costs increased crease was driven by a significant jump 1.5 percent in June, but declined 0.1 0.16 0.16 Cygne Designs (CYDS) - 310 0.16 -15.79 in gas prices. The so-called core prices, percent year-to-year. which exclude the volatile food and ener- Men’s suits, sport coats and outer- 1.05 0.75 Joe’s Jeans (JOEZ) 13.3 1188117 0.81 -12.90 gy sectors, rose 0.2 in June and 1.7 percent wear prices fell 3.2 percent last month compared with a year earlier. and 7.6 percent from a year earlier. 10.25 9.56 LaCrosse Footwear (BOOT) 14.1 2598 9.76 -4.13 Retail apparel prices bounced back Men’s furnishings costs increased 1.4 in June, rising a seasonally adjusted 0.7 percent in June and 2.3 percent in 54.00 54.00 French Connection * (FCCN:L) - 5000 54 -3.14 percent after dropping for three straight 12-month comparisons. Men’s shirts and months, the Labor Department said. sweaters fell 1.7 percent in June, but Compared with a year earlier, the were up 3 percent from a year earlier. 0.45 0.38 Charles & Colvard (CTHR) - 22534 0.38 -2.54 cost of apparel at retail advanced 1.5 Prices for men’s pants and shorts de- percent, according to the CPI. Apparel clined 2.5 percent in June, but rose 0.3 3.45 3.25 CCA (CAW) 20.3 5700 3.41 -1.16 prices declined 0.2 percent in March, percent year-over-year. Boys’ apparel April and May. prices were 2.1 percent higher in June 4.39 4.16 Zale (ZLC) - 470994 4.27 -1.16 Women’s apparel prices were up 1.6 and 3.7 for the year. 12.94 12.20 Charlotte Russe (CHIC) - 293229 12.44 -0.88 H&M Comps Decline 5% in June 39.14 38.30 Tod’s * (TOD:MI) 14.1 95559 38.65 -0.82 PARIS — Swedish fashion retailer Hennes Like its fast-fashion competitor 388.00 381.50 Hennes & Mauritz * (HMB:ST) 21.1 2804631 387 -0.70 & Mauritz on Wednesday reported a Inditex, H&M has managed to weather worse-than-expected drop in June same- the economic downturn better than * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on store sales, suggesting that markets re- midmarket fashion retailers because the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss main tough despite some early signs of of its low-cost strategy and growth into francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. recovery from the economic downturn. new markets. H&M, the world’s third largest fashion Last month, H&M reported a better- chain behind Gap Inc. and Spain’s Inditex than-expected 6.4 percent increase in Group, said comparable sales dropped 5 second-quarter net profits, helped by percent last month. Total sales, which in- store openings and successful spring clude contributions from new stores, rose collections, especially in countries Burani Group Names New CEO 4 percent in the same period. At the end where the company recently expanded. By Andrew Roberts business to ease net debts of 404.6 mil- of June, H&M operated 1,827 stores, com- But the Swedish giant also reported lion euros, or $565.4 million, amid declin- pared with 1,600 a year ago. flat sales in May, while sales in stores MILAN — Mariella Burani Fashion Group ing demand. H&M doesn’t provide actual figures that have been open longer than a year SpA is shaking up top management in In the first quarter, the firm reported for its monthly sales updates and re- declined 9 percent in the same month. an effort to strengthen the indepen- pretax losses of 1.6 million euros, or $2.1 leases only percentage changes. — Elena Berton dence of its board as the company re- million, after a 5.5 percent decline in rev- structures debt. enues and analysts expect the company Former chief financial officer to close 2009 in the red. Gabriele Fontanesi will take over as MBFG sold its stakes in jewelers IN BRIEF chief executive officer by September, Calgaro Srl this month and Rosato Srl • FAKE SHADES SEIZED: U.S. Customs & Border Protection said Wednesday it had replacing Giovanni Burani, who will be- in May to focus on apparel and leather seized counterfeit Dolce & Gabbana and Versace sunglasses valued at $122,043. come president and ceo of the group’s goods, which together account for more The seized shipment was flagged for possible trademark violations on May 18 in parent company Burani Designer than 90 percent of group turnover. The Pembina, N.D. It included 359 pairs of sunglasses. In fiscal year 2008, Customs Holdings NV. company added Giambattista Valli rtw seized counterfeit sunglasses worth about $7.9 million, accounting for 3 percent of Both Giovanni Burani and brother to its license portfolio and asked credi- all intellectual property rights seizures. Andrea Burani will leave the board, tor banks for a standstill agreement on the latter to concentrate on the its debt. • PJSC ADDS SHELDON: John Sheldon, formerly of Lazard Ltd., has joined Peter J. group’s industrial management, the Separately Wednesday, the company’s Solomon Co. as managing director with responsibility for leading and expanding its company said. leather goods unit, Antichi Pellettieri, consumer products practice. A 27-year veteran in the field of mergers and acquisi- MBFG’s holdings include Mandarina applied to be included in that request. tions, he was co-head of the global consumer products practice of J.P. Morgan and Duck and it has licenses with La Perla MBFG’s share price gained 6 percent focused on large privately held firms during a tenure at Goldman Sachs. He reports (ready-to-wear), John Galliano (jewel- to 2.31 euros, or $3.23, by midday trading to Kenneth Berliner, president of the firm, which has added 10 senior bankers in ry), and Aquascutum (footwear), among in Milan, while Antichi Pellettieri’s stock areas including retail and restructuring in the last six months. others. The company is reorganizing its spiked 11.2 percent to 1 euro, or $1.40. WWD, THURSDAY, JULY 16, 2009 15 WWD.COM Yolanda Bridal Boutique Closing After 41 Years By Rosemary Feitelberg about their wedding gown orders. not didn’t think that was a wise decision,” about to leave them high and dr y, she she said. “they would change the busi- After dressing tens of thou- will keep the store open until Aug. 29 Bob Mackie and ness, and i could wind up getting it back sands of brides in the last 41 years, Yolanda and after that, two area boutiques, Ana Yolanda Cellucci in five years.” Cellucci will close her one-stop bridal and hernandez in Boston and david Joseph Cellucci has donated about $250,000 ready-to-wear boutique, salon, spa and & sondra Celli in Waltham, will offer al- worth of wedding gowns from design- cafe in Waltham, Mass., next month. terations or additional orders. ers such as oscar de la renta, Pauline Known for her all-white ensembles salon gift certificates and health club trigère and Bob Mackie to the Museum and elongated eyelashes, Cellucci, who memberships will be honored by roberts of fine Arts in Boston for an exhibition. has been dubbed the “sultan of sequins,” salon & spa in Belmont, Mass. and the she said she has also approached the has favored the old-school approach to Waverly oaks health Club in Waltham. fashion institute of technology about retail, making a point of calling her cus- “so many stores just close their doors donating another batch of “showstop- tomers by name and dressing genera- and don’t do anything,” Cellucci said. “i ping” wedding gowns and accessories of tions of family members. But with her wasn’t going to do that. We have weddings comparable value. Cellucci, who started 75th birthday a few months away, she planned into January 2010. if a girl i’ve out selling wigs and a rack of dresses said: “it’s been a long time coming. i’ve worked with really wants me to, i’ll come in 1968, has donated $500,0000 worth of never been ready to do this and frankly in for her fitting.” wigs to the dana-farber Cancer institute i never will be. i get here at five to six rather than sell the $5 million busi- in Boston. every morning, and my trips to new York ness, she opted to sell the 22,000-square- she is also considering starting an e- are frequent,” she said. “But my children foot space for an undisclosed sum to commerce site or even opening a small said to me, ‘ Yo u need to give yourself duffy Partners, a local developer. other store. “Brides would come in, try every- some time and to give us some time.’” potential buyers wanted the business, thing on and then buy it online,” she said. she spent a good part of Wednesday too, but they also wanted her to stay on “i thought, ‘if that’s what i am losing busi- fielding calls from brides-to-be worried for five years and to sign a guarantee. “i ness to, why not do it on my own?’”

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Spaces MEN’S ACCESSORY COMPANY SEEKS THE FOLLOWING ACCOUNT MANAGER COMMERCIAL Production Coordinator To handle major depart store accts Private Label womenswear manufac- Must be aggressive, organized and REAL ESTATE turer with a fast paced wholesale and know retail math/excel existing rela- retail operation looking for a Produc- tionships a plus! tion Coordinator to work closely with SHOWROOM SALES ASSISTANCE PATTERNS, SAMPLES, Production Manager. Daily communi- Able to take direction, be extremely cations and follow up with overseas organized, good at multi-tasking and vendors, customers and interface with PRODUCTIONS know excel/word. All lines, Any styles. Fine Fast Service. design, merchandising, sales and imports. Salary for both positions will depend Call Sherry 212-719-0622. Must be detail oriented & have good on experience. E-mail resumes to: computer skills. Email resumes to: [email protected] Showrooms & Lofts [email protected] ACCESSORIES ACCOUNT EXECUTIVE BWAY 7TH AVE SIDE STREETS Great ’New’ Office Space Avail PATTERNS, SAMPLES, Seeking results-oriented account executive for NY showroom to develop ADAMS & CO. 212-679-5500 and grow our new accessory division. Sales Representative PRODUCTIONS NY based fabric co is looking for Full service shop to the trade. Responsibility is national and travel will be required. Minimum of 3 years SALES REP min 3 yrs exp, w/ well es- Fine fast work. 212-869-2699. accessory sales experience required. Ideal candidate must be highly moti- tablished client base.Fax 212.810.4359 vated, a team player and have relationships with department and specialty [email protected] stores. Please e-mail resume and cover letter to: 33rd-57th St West-All Sizes Menswear Showrooms [email protected] D. Levy Adams & Co. #212-679-5500 Technical Assistant NYC based established ladies sports- wear import company is seeking a highly organized and detail oriented spec tech. 3-5 years exp with knowl- edge of measuring, patternmaking and SALES ROLE SALES MGMT proficiency in computers. Good verbal Small NY metro sales office avail to and written communication skills with compliment your existing national Executive Assistant an ability to work in fast paced envi- team with local rep accts in NYC. 20+ Needed to assist VP and Sales Mgr. w/ ronment a must We offer competitive yrs in Bentonville, Minneapolis as well day-to-day office and customer service. salary and benefits. Apply at as National exp/sales and sales mgmt. E-Mail: [email protected] [email protected] – Code: MNTA Kids, accessories, strengths, license exp. E-mail: [email protected]

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Chloë Sevigny in Proenza American Boys Schouler. People have been doing the moonwalk everywhere in recent weeks, but on Monday night the fashion crowd gathered to pay homage to the very first one, which occurred in outer space 40 years ago. Singers and TV starlets including Estelle, Cassie and Jessica Szohr joined NASA astronauts at the Louis Vuitton- sponsored bash held at the American Museum of Natural History’s Rose Center for Earth and Space, which honored the first lunar landing. For the occasion, waiters passed around rice krispie balls dipped in white chocolate that resembled moons and guests poked around the museum’s planetary displays. Buzz Aldrin and Jim Lovell, the astronauts behind the historic Apollo 11 and Apollo 13 missions, respectively, were the true stars of the evening. (Lovell and Aldrin currently appear along with fellow space traveler Sally Ride in Vuitton’s core values campaign.) Together, the former colleagues delivered a moving speech on the momentous mission that Aldrin described as, “the high point of my life.” Most in the crowd were too young to remember it. And Estelle, for one, didn’t seem to mind. “Space travel is not for me,” said the singer. “Too many things Buzz Aldrin with can go wrong between lift-off and landing. I’m better on the ground.” Jessica Szohr in Not Lance Bass, who actually trained for a mission in 2002 before s Estelle in an Anna Sui for plans eventually fell through. Louis Vuitton. Target dress, DKNY “I wanted to go to learn and explore,” said the former boy bander. “I vest and Temperley didn’t want to go to just float around.” Yvonne Force London jacket. • • • Villareal in Downtown, a black-clad crowd helped Jack McCollough and Lazaro Proenza Hernandez celebrate the launch of the ninth edition of A Magazine, which Schouler. the duo curated. In keeping with the issue’s “Made in the USA” theme, the courtyard of the Soho Mews was decorated with tire swings (a shout out to the ailing auto industry?) and flag emblazoned pillows. Waiters passed out mini BLTs, burgers and lobster rolls to revelers like Amy Greenspon, Yvonne Force Villareal, Maria Cornejo, Ben Watts and Jen Brill. “We were asked to do it right before the election and we knew it was going to drop around the 4th of July, so it just made sense,” explained Hernandez (Proenza Schouler is the first American design team to curate the Belgian biannual). “And last summer we drove cross country and there’s just so much

greenfield unseen American art and locations.” v

ze The mag’s cover girl, Chloë Sevigny, was still feeling in touch with her down- home roots. “I’ve always been very patriotic and American. I mean I grew up in ing by v Connecticut and had all those preppy influences,” said Sevigny, pausing to consider her very un-WASPy black leather jumpsuit. “Well, I’m independent, what could be more American than that?” Jim Lovell e eichner; ir v For more, see WWD.com. ste by party thomas iannaccone; proenza by

Amy Greenspon photos party in Proenza Lazaro Hernandez and Schouler. Ben Watts Jack McCollough Maria Cornejo Lance Bass Vuitton

Like many tried-and-true New Yorkers, Amy Irving to whom she was married for four years. (Irving reportedly received has a bone to pick with the Hamptons. a $100 million settlement after a judge nullified a controversial “The commute sucks,” she says emphatically. prenup that Spielberg had scribbled on a napkin.) Unfortunately for the actress, she’ll be spending the next few These days, Irving seems content where domestic matters weeks in Montauk Highway traffic while appearing in “The Glass are concerned. She’s a mother to two grown sons Max (dad is Menagerie” at East Hampton’s Guild Hall through July 26. Spielberg) and Gabriel (from a relationship with Brazilian director In the Tennessee Williams classic, Irving tackles the lead role Bruno Barreto) and is now married to documentary filmmaker of Amanda, a former Southern belle who can’t quite come to Kenneth Bowser, whom she describes as “the man of my dreams.” grips with the fact that she’s well past her prime. Her attempts to find a suitor for her emotionally immature daughter Laura only complicate matters. “Amanda is a deeply felt woman. She is incredibly strong but This is the meatiest role I’ve terribly frightened of what the world is going to give her,” says Irving, whose “Menagerie” co-stars are relative newcomers Louisa “ever had in the best play I’ve ever Krause and Ebon Moss-Bachrach. “This is the meatiest role I’ve ever had in the best play I’ve ever been in.” been in. ­ That’s a big statement coming from the 55-year-old, whose prolific career in television, theater and film includes everything ” — Amy Irving from an Academy Award best supporting actress nomination (for 1983’s “Yentl”) to roles in Broadway productions of Chekhov’s Amy Irving And traffic notwithstanding, she is enjoying her East Hampton “Three Sisters” and Arthur Miller’s “Broken Glass.” stint, frequenting neighborhood watering holes Nick & Toni’s and ng Place Born in Palo Alto, Calif., to an actress mother and a stage- The American Hotel in Sag Harbor (“Places I used to visit in my

i director father, the actress made her Broadway debut in “The Country Wife” at 12 years last incarnation,” says Irving, coyly referring to the time when she was married to Spielberg). old. “I’ve been on the stage since I was a baby,” she says. But Irving is by no means in vacation mode. Her various credits even include a previous production of “Menagerie” at a theater festival “When I’m on stage — whether I’m on the George Street Playhouse in New Brunswick, in Santa Fe, N.M., 30 years ago in which her real-life mother played Amanda, while Irving was N.J., or Broadway. I get the same nerves, I have the same fears and I have the same cast as Laura. “I wanted to create my own Amanda this time,” says Irving. “But there were passion to do it right.” some things my mother did that were just so damn good I had to steal them from her.” — Amanda FitzSimons But acting hasn’t been the only thing that has kept Irving in the public eye over the years. Irv In the late Eighties, the actress made headlines for her messy divorce from Steven Spielberg, Guild Hall; 158 Main Street, East Hampton, N.Y.; 631-324-0806