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Retailing's Great Showman

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Retailing's Great Showman MEN’S WEEK: UPTOWN BOYS SEE WHAT’S PROENZA SCHOULER’S NEW AND LAZARO HERNANDEZ AND NOTEWORTHY AT JACK MCCOLLOUGH ON THEIR THE UPCOMING TRADE SHOWS BIGGEST MOVE YET. IN MANHATTAN. PAGE 12 Marvin Traub, fl anked by models for a Bloomingdale’s Spanish promotion in 1990. WWD$3.00 ■ WOMEN’S WEAR DAILY ■ THURSDAY, JULY 12, 2012 Marvin Traub, 1925-2012 RETAILING’S GREAT SHOWMAN Marvin Traub, one of retailing’s most famous and innovative merchants who led Bloomingdale’s to its trendiest, most fashionable heights, and added excitement to an often formulaic industry, died at age 87 at his home in New York. After retiring as Bloomingdale’s chairman and chief executive offi cer in 1991, Traub, a tireless worker, parlayed his experience into a second career as an author and a consultant touching brands, stores and executives worldwide with his wealth of knowledge. For more, see pages 4 to 8. PHOTO BY DAVID TURNER 2 WWD THURSDAY, JULY 12, 2012 Burberry Sales Growth Slows THE BRIEFING BOX message from the luxury brands erwear, large leather goods, men’s IN TODAY’S WWD By SAMANTHA CONTI probably through the third quarter.” tailoring and accessories. Other analysts were more Burberry said the quarterly LONDON — In what could be a upbeat. growth came partly from Asia- harbinger of tougher times ahead Seymour Pierce Research Pacific, where sales advanced 20.6 for the luxury sector, Burberry said that it was expecting percent, and Europe, where sales A view of the new Proenza Group plc reported a slowdown Burberry’s shares to be weaker were up 10.3 percent. Cartwright Schouler store. in sales growth for the first quar- on Wednesday, but it still consid- added that, in China, compara- ter, citing “a more challenging ered the company to be a “strong, tive retail growth was in the “mid- external environment.” long-term growth story and with teens,” while in Europe — and On Wednesday, Burberry significant geographical and prod- especially the U.K., France and shares closed down 7.4 percent to uct mix opportunities as well as Germany —tourists were driving 11.89 pounds, or $18.43 at current operational leverage to come.” the revenue increases. exchange, after the company said A London-based analyst who “It’s the traveling luxury con- in a trading update that revenue follows Burberry pointed out that sumer who is fueling growth in in the three months to June 30 the first quarter is traditionally Europe — the growth is not com- climbed 11.2 percent to 408 million the brand’s smallest quarter with ing from domestic customers,” she MORELAND pounds, or $644.6 million at aver- the most difficult comparatives. said. Italy and Korea remain weak. LEXIE age exchange rates for the period. “A low, single-digit percentage In the Americas — where BY The revenue figure fell at the point miss on what is the smallest, quarterly growth was 3.4 percent bottom end of the market con- toughest quarter of the year for — Cartwright acknowledged that PHOTO sensus, and landed just short of Burberry is not dramatic — we’re the brand continued to cull the some analysts’ targets. In the pre- not talking about a 10 percent number of wholesale accounts in Marvin S. Traub, 87, one of the 20th century’s most vious quarter Burberry’s sales miss,” said the analyst, who also favor of retail stores. “We’re man- visionary retailers acclaimed for his merchandising and grew 16.1 percent. spoke on condition of anonymity. aging inventory more tightly, and marketing showmanship, died on Wednesday. PAGE 1 The news dragged down other Indeed, Burberry has left its focusing on the top doors with luxury stocks at the close of trad- full-year guidance unchanged: the right adjacencies,” she said. Ready-to-wear designer Brian Reyes has been ing on Wednesday, including Tod’s, Pretax profits are still set to hit In the first quarter, appointed vice president and head of global design at which sank 4.8 percent, Ferragamo, 440 million pounds, or $682 mil- Burberry’s average selling price Calvin Klein Underwear. PAGE 9 down 6.6 percent, and Richemont, lion, for the 2012-2013 fiscal year. increased in the mid- to high- which retreated 3.4 percent. Burberry chief executive single digits, as Burberry contin- Jennifer Lopez is among the group that today launches “Say what you want, but Angela Ahrendts called the first- ues to de-emphasize its opening Teeology.com, an online shopping destination for limited- the reality is that growth has quarter performance “robust,” price point products in favor of edition luxury T-shirts. PAGE 9 slowed,” said one Paris-based an- despite what she referred to higher-price categories. alyst who spoke on condition of as a more challenging external As reported in May, Burberry Aria Partners has sent a letter to the board of anonymity. “Virtually all the lux- environment. In a phone call plans to terminate its Nova Christopher & Banks Corp., this time in response to the ury players I have spoken to have with WWD, Stacey Cartwright, Check, one of the firm’s early retailer’s adoption last week of a poison pill. PAGE 9 flagged a slowdown in Mainland Burberry’s chief financial officer, iconic patterns with a khaki China and a stagnant Europe. talked about the impact of the background and burgundy, black An estimated 250,000 visitors hit nine trade fairs and “The markets are also assuming macro-economic environment: and white stripes. The company more than 60 runway and studio presentations during that things have gotten tougher, and “ Yo u look at the upcoming said the Asia-made Nova Check Berlin Fashion Week. PAGE 10 I think it’s fair to expect a cautious elections in the U.S., the euro cri- accessories line is still a big, sis, China. Things highly profitable business, but is A restructuring of the Condé Nast Media Group is under are happening ev- no longer right for the brand. way and 12 people will be let go as a result. PAGE 11 erywhere, markets “That has diluted some of the are uneven and first-quarter figures,” said an in- D. Porthault’s new owner says he plans to invest it’s hard to discern dustry observer. “But it was a de- $5.5 million in the firm during the next four years in a trends,” she said. liberate choice by Burberry as they turnaround bid. PAGE 11 In the first quar- become more of a luxury brand.” IMAGES ter, retail sales — The company said global prod- Proenza Schouler on Friday will open its first store, which now gener- uct licenses delivered double-dig- a 2,000-square-foot space at 822 Madison Avenue in ate 70 percent of it growth, and that Japanese ap- Manhattan. PAGE 12 the business — in- parel royalty income was broadly Burberry GAVAN/GETTY creased by 14 per- unchanged. However, Japanese Canadian clothing brand Jack Victor will produce IAN cent and the fastest- nonapparel income was down, a special capsule collection for its centennial that will looks on the BY runway. growing categories largely reflecting the termination launch for spring. PAGE MW1 PHOTO remain core out- of certain licenses in June 2011. New and noteworthy brands to check out at the men’s wear trade shows in Manhattan. PAGE MW4 BEAUTY BEAT Frédéric Fekkai to Exit International Markets ON WWD.COM RETAIL: On Friday, Lazaro Hernandez and Jack McCollough THE FRÉDÉRIC FEKKAI brand brand in 2008, growing at a rate dent, chairman and chief executive will open their first Proenza Schouler store, a 2,000-square- plans to bid adieu to its overseas of high single digits. Rough es- officer, said P&G will tighten its foot space at 822 Madison Avenue. For more photos, see markets. timates by industry sources put focus on the biggest opportunities. WWD.com/retail-news. The Procter & Gamble Co. the global sales total at upward “We are targeting our 40 larg- owned hair care brand will exit its of $150 million. est and most profitable business- international markets in January, In the U.S., Fekkai has lines es, the 20 largest and most prom- CLARIFICATION with plans to relaunch business both in higher-end stores, includ- ising innovations, and the 10 The Fashion Industry Gallery has changed its August market overseas in the future, confirmed ing Bloomingdale’s, Ulta and most important developing mar- dates from those that ran in the Domestic Trade Shows calendar a P&G spokesman. Fekkai is car- Bluemercury, and in drugstores, kets, where the growth potential on June 20, Section II, page 9. The new dates are Aug. 16 to 18. ried in 25 countries outside the such as Walgreens. is the highest,” said McDonald. U.S., primarily across Europe. A financial source said “We do business in 1,000 catego- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS “We are pulling back so we Fekkai’s business overseas is ry-country combinations. The top [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. can go back and look at the busi- small, and that P&G has more 40 represents about 50 percent of COPYRIGHT ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. ness model, get the right propo- pressing concerns. our sales and about 70 percent of VOLUME 204, NO. 8. THURSDAY, JULY 12, 2012. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays sition and continue to grow The company is feeling the our profit. Twenty of these are in and holidays, with one additional issue in May, June, October and December, and two additional issues in February, March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine [the brand],” he said, adding squeeze from slowing growth in the household care business, and Publishers Inc.
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