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Paint Your Wagon

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Paint Your Wagon s FASHION: s BEAUTY: Bobbi Brown RETAIL: Marni’s Preparing in a global push, page 6. quirky new for a Vionnet Manhattan retrospective, store, page 3. page 5. MEDIA: Albert Maysles remembers, and defends, “Grey Gardens” and the s Beales, page 14. Women’s Wear Daily • The Retailers’ Daily Newspaper • April 17, 2009 • $3.00 WBeauty wDFRIdAY Paint Your Wagon Maybelline New York is looking to resuscitate the mass lipstick category with Color Sensational, a 48-shade lipstick range that also includes glosses and lip liners. The range, which uses a new color dispersing technology, could generate as much as $30 million in retail sales during its first six months. For more, see page 8. Caught in a Vise: Closures, Rent Cuts Squeeze Mall Developers By Sharon Edelson Barry’s, The Sharper Image, Fortunoff Stores Inc., Target Corp. and Gap Inc. Now that General Growth Properties and Mervyns filed for Chapter 11 have cut back or postponed planned ANILO MATZ ANILO Inc. has filed for Chapter 11 bankruptcy protection and ultimately liquidated, expansion. D protection, the question is whether more shuttering hundreds of locations. Macy’s The result is that mall vacancy rates recession-hit developers might follow. Inc., Foot Locker Inc., AnnTaylor rose to 9.5 percent in the first quarter A; STYLED BY A; STYLED BY r Plummeting consumer spending has Stores Corp. and Zale Corp. closed from the 8.9 percent registered for all of T MIT hit the profitability of many retailers. underperforming units that totaled into 2008, marking the largest single-quarter r Circuit City, Linens-N-Things, Steve & the hundreds. Meanwhile, Wal-Mart See Malls, Page 12 PHOTO BY ROBE PHOTO BY 2 WWD, FRIDAY, APRIL 17, 2009 WWD.COM Bulgari Expects Loss, Gradual Improvement By Andrew Roberts close unprofitable stores this year after the com- pany’s earnings fell 45.1 percent to 82.9 million BULGARI SPA EXPECTS A FIRST-QUARTER euros, or $122 million, in 2008. Full-year rev- loss, but the Italian jeweler anticipates a grad- enues slipped 1.4 percent to 1.08 billion euros, WWDFRIDAYBeauty ual improvement later in the year, the company or $1.59 billion. GENERAL said Thursday. He reiterated those priorities Thursday and Bobbi During a shareholders meeting in Rome, repeated that prices would stay flat except where Brown’s 1 Now that General Growth Properties has filed chief executive officer Francesco Trapani and there have been significant currency fluctuations. Tokyo bankruptcy, the question is whether more mall Bulgari’s majority shareholders Paolo and Bulgari is negotiating with some of its banks to store. developers will follow in the sour economy. Nicola Bulgari also ruled out putting Bulgari up extend deadlines on as much as 30 million euros, 2 Bally International AG has parted company with for sale, a spokesman said. or $39.7 million, of debt, Trapani said. But he un- ceo Marco Franchini, who leaves after seven Trapani attributed the firm’s first quarterly derlined there were no significant credit risks. years at the luxury shoe and accessories firm. loss since 1999 partly to wholesalers running As of Dec. 31, Bulgari’s net indebtedness was 304 down their inventories. He said Bulgari could an- million euros, or $385.7 million. 2 Aiming to be Asia’s most recognized brand, ticipate a contained recovery in the second part Brothers Paolo and Nicola Bulgari — the Japanese merchant Uniqlo launched an online of the year after a pickup in third-party demand. grandsons of Bulgari founder Sotirios Voulgaris store for China in partnership with Taobao.com. Bulgari is to release its first-quarter results and chairman and vice chairman, respec- 4 The domestic textile industry was up in arms May 12. The company’s share price climbed 5.3 tively, of the firm — each hold 23.45 percent of over the Obama administration’s decision not to percent to 4.03 euros, or $5.33, at the close of Bulgari’s stock, while Trapani, their nephew, declare China a currency manipulator. trading Thursday in Milan. Dollar figures were owns 4.39 percent. Bobbi Brown is thinking globally, with a plan converted at average exchange rates for the pe- Shareholders authorized Bulgari to buy back s 6 riods to which they refer. up to 30 million euros, or $39.7 million, of stock that will nearly triple her number of international Trapani told WWD last month Bulgari would to stabilize the share price, which has fallen 43.6 freestanding stores within the next three years. cut jobs, reduce the number of products and percent in the last 12 months. Maybelline New York has experienced a string of 8 successes in the last five years, namely in the eye category, but it still ranks fourth in lipstick. 9 In the year since Coty Inc. began integrating Del Bally Severs Ties With CEO Marco Franchini Laboratories, the company has fortified its pres- MILAN — Bally International AG has parted compa- He added there would be no further manage- ence at mass and launched products. ny with chief executive officer Marco Franchini. ment changes and renewed his support for cre- Lawrence C. DeParis has been named as Franchini, 51, leaves after seven years at the ative director Brian Atwood, whom Franchini 11 president and ceo of Nat Nast Co., charged with helm of the luxury shoe and accessories label appointed in 2007. growing the family-owned men’s sportswear firm. for personal reasons, Bally stated Thursday. The “We face the same difficult economic envi- firm has yet to name a successor. ronment as all other companies in the industry. Classified Advertisements................................................................................................15 “Marco has been pivotal for the successful However, as a brand with firm, authentic values turnaround of Bally since he joined in early and focus on quality, we feel Bally is well posi- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS 2002. His outstanding efforts have helped make tioned to weather this storm. We are excited about [email protected], USING THE INDIVIDUAL’s NAME. Bally into the successful company that it is its development and we remain committed to mak- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. today,” Bally stated. ing further investments to realize the long-term VOLUME 197, NO. 82. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with Franchini, a former Gucci veteran, guided strategy that has been defined. We take a counter- one additional issue in January, May, October, November and December, two additional issues in March, April, June Bally to break even in 2004 after 16 years of loss- cyclical stance and embrace the selective opportu- and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services es. After bringing back production in-house and nities that this environment brings,” Harf stated. provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. expanding Bally’s retail network to 730 points He added that Bally’s goal remained that of Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage of sale worldwide, Franchini said last April he growing into “a big and profitable luxury house” 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 expected the label to close fiscal 2008 with sales and that management would focus on optimiz- addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES of around 500 million Swiss francs, or $462.7 ing the retail network and company processes TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS million. Bally registered revenues of 400 million to do so. CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed Swiss francs, or $337.1 million, in 2007. “We will continue with a multichannel strat- on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all Dollar figures were converted at average ex- egy of own retail, franchise, shop-in-shop and editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. change rates for the periods to which they refer. wholesale distribution,” Harf stated. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Vienna-based Labelux Group acquired Bally Bally launched its first online store in Occasionally, we make our subscriber list available to carefully screened companies that offer products and services from TPG Capital last June for an undisclosed February. that we believe would interest our readers. If you do not want to receive these offers and/or information, please sum. TPG bought Bally for an estimated $200 The company was founded in 1851 by Swiss advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT million in 1999. industrialist Carl Franz Bally and currently RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR Bally president Peter Harf stated Labelux re- trades in 66 countries worldwide.
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