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Youth Vote Shiseido Has Millennials in Its Sights with Ibuki, the Seven-Item Skin-Care Range It Will Launch in September

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Youth Vote Shiseido Has Millennials in Its Sights with Ibuki, the Seven-Item Skin-Care Range It Will Launch in September PLUS: Bridget Foley’s Diary SAMUELSOHN’S STEPHEN GRANOVSKY AND ARNOLD BRANT BLUE’S SILVERSTONE TO ADD HICKEY CLUES FREEMAN PAGE 9 LABEL. WWDTALLY TIME: KEEPING SCORE OF THE SEPTEMBER BOOKS. PAGE 9 PAGE 4 FRIDAY, JULY 19, 2013 Q $3.00 Q WOMEN’S WEAR DAILY UNREST INCREASES As Riots Rock Brazil, Luxe Players Stay Firm beach house every weekend at the By ADRIANA BRASILEIRO expense of taxpayers. After that peaceful protest died THE HOPES that some stability down, at about 11 p.m., a group of had come may be quickly fading 200 men wearing masks or with in Brazil. shirts tied around their heads start- Since early June, protests ed to attack stores and banks on that began out of anger over pub- Leblon’s main street and marched lic transit fare increases have toward the neighboring district of spread across the country, filling Ipanema. At least 10 bank branch- the streets of São Paulo, Rio de es had their windows broken and Janeiro and a dozen other cit- ATM machines were damaged. The ies. Things had been quieter of vandals built and set fire to several late before about 2,000 protest- barricades at different points on ers gathered early Wednesday the main road using garbage cans night in front of the street where and wood from benches. Rio de Janeiro state governor A store in Leblon owned by Sérgio Cabral lives, in the up- Toulon, a Brazilian men’s wear scale Leblon neighborhood. They chain, was completely looted as chanted “Get out, Cabral’’ to a vandals broke all windows and samba beat, and protested the stole even the mannequins. In misuse of public funds, including tears, Eduardo Ballesteros, the the use by the governor of heli- store owner, told Globo TV the acts copters to take his family to their SEE PAGE 12 The Men’s Wearhouse Buys Joseph Abboud for $97.5M share repurchase program with By JEAN E. PALMIERI cash on hand and/or proceeds from its existing credit facility. THE MEN’S WEARHOUSE INC. J.W. Childs bought the Joseph has reunited Joseph Abboud the Abboud name and trademark for man with Joseph Abboud the brand. $65.5 million in 2000. Since that On Thursday, the Fremont, time, confusion in the marketplace Calif.-based retailer said it signed and emotionally charged lawsuits a definitive agreement to acquire about the use of the Joseph Abboud JA Holding Inc., a subsidiary of J.W. name have marked the relation- Childs Associates, for $97.5 million ship between the designer and the in cash. The deal is subject to cer- label that he created in 1987. tain adjustments and is expected Also in the last three years, to close in the third quarter. The there have been persistent rum- company expects to finance this ac- blings that J.W. Childs was looking quisition as well as a $200 million SEE PAGE 4 Youth Vote Shiseido has Millennials in its sights with Ibuki, the seven-item skin-care range it will launch in September. Featuring fixes for such concerns as lack of sleep and less-than-optimal nutrition, the collection will be sold in about 1,500 department and specialty store doors in the U.S., where it could do as much as $15 million at retail in its first year on counter. For more, see page 6. PHOTO BY THOMAS IANNACCONE 2 WWD FRIDAY, JULY 19, 2013 WWD.COM Hermès Posts Gains, Ups Guidance THE BRIEFING BOX ing on currency fluctuations, its In silk and textiles, sales IN TODAY’S WWD By JOELLE DIDERICH operating margin in 2013 could rose 7.1 percent, while ready- be close to the record high of to-wear and fashion accesso- PARIS — It appears reports of 32.1 percent posted last year. ries saw revenues grow 19.9 luxury’s decline might be greatly Foreign exchange headwinds percent. Sales in the “other exaggerated — at least where produced a negative impact of sectors” segment, which in- Hermès is concerned. 53 million euros, or $69.6 mil- cludes jewelry and home wares, The maker of Kelly bags and lion, on the company’s revenues jumped 27.5 percent. silk scarves on Thursday raised in the first half. “Jewelry represents a growing its guidance for 2013 revenues The effect was particularly portion of our sales, with very and margins after reporting an pronounced in Japan, where strong demand,” said Dumas, acceleration in sales in the sec- sales fell 12.5 percent in the sec- who formerly headed the jewelry ond quarter, helped by a strong ond quarter — but were up 8.9 division at Hermès. performance in the U.S. and percent when excluding curren- Sales of watches eased 0.7 sustained demand in Europe cy effects. Sales in the rest of the percent, while perfumes were and China. Asia-Pacific region were up 15.6 up 21.5 percent, boosted by Hermès International said percent during the period. the positive reception to its Phil Winser and Dree revenues in the three months Revenues in continental new women’s perfume, Jour Hemingway at the EICHNER ended June 30 totaled 910.4 mil- China grew 20 percent at con- d’Hermès, and the continued Australian Fashion Foundation party. For STEVE lion euros, or $1.18 billion, up stant exchange, Dumas said, success of men’s fragrance BY from 814.5 million euros, or $1.05 noting that Chinese demand for Terre d’Hermès. more, see WWD.com. billion, during the same period a watches remained weak, follow- Sales of leather goods re- PHOTO year earlier. ing a government crackdown on mained capped by production This represented a rise of 11.8 gift-giving, but other sectors were capacity, something the company percent in reported terms and holding up. is addressing by building two The riots in Brazil have taken their toll on retail there, but an increase of 16 percent when Chinese tourists also contrib- leather goods factories in east- luxury brands are still looking to grow their footprints in the stripping out the impact of ex- uted to the healthy performance ern France that will eventually South American country. PAGE 1 change rate fluctuations. All dol- in France — up 14.4 percent — create 400 jobs. lar rates are calculated at aver- “We are trying to produce as The Men’s Wearhouse Inc. on Thursday said it signed a age exchange for the periods to much as possible, because we re- definitive agreement to acquire JA Holding Inc. for $97.5 which they refer. ally don’t enjoy being unable to million in cash. PAGE 1 “We continue to see strong meet a request from a customer momentum in every region and $1.18B who may be disappointed not Grano Retail Investments is expected to reveal Sunday every segment,” Axel Dumas, to find a product in our stores,” that it has acquired all the tangible assets of the Hickey who took over as co-chief execu- said Dumas. “Opening two new PAGE 4 REVENUES FOR THE THREE Freeman brand. tive officer of Hermès last month, factories with more than 400 MONTHS ENDED JUNE 30. told WWD. staff in France is a sign of con- Lisa Collier has been named president of Levi Strauss & “These results reflect first and fidence, but it also requires a Co.’s Dockers brand. PAGE 5 foremost the success of our new real training and learning effort, creations, because that is how and the rest of Europe, which which means that some of our Sandeep Reddy has been promoted to chief financial officer you keep growing every year.” posted 14.7 percent growth in best craftsmen will be on hand PAGE 5 The second-quarter figures the second quarter. The fastest to impart their knowledge. It’s all of Guess Inc. beat analysts’ expectations, send- increase was in the Americas re- about finding a balance between ing Hermès shares up 4.5 per- gion, which recorded a 19.4 per- those that are experienced and Two years after the launch of its first scent for women, cent to close at 262.45 euros, or cent jump. those that are learning.” Bottega Veneta is bringing its masculine counterpart, $341.37 at current exchange, on “This is due partly to a favor- The executive declined to Bottega Veneta Pour Homme, to the table. PAGE 6 the Paris stock exchange. able comparison basis, but also comment on the recent deci- Hermès said that although it to the popularity of our stores sion by France’s stock market Coty Inc. has recruited beauty veteran Jill Scalamandre to remained cautious, full-year rev- and products. Jewelry, in particu- regulator, AMF, to slap a record head Philosophy. PAGE 6 enues at constant exchange rates lar, is doing extremely well,” said fine on LVMH Moët Hennessy could now grow by more than its Dumas, adding that Hermès is Louis Vuitton over the way it This year’s Cosmoprof North America show was all about previous target of 10 percent, preparing to unveil its renovated acquired a 17 percent stake in wooing the tech-savvy, innovation-seeking Millennial. PAGE 7 putting it ahead of the majority store on Rodeo Drive in Beverly Hermès. LVMH, which is em- of its peers. Hills in September. broiled in a series of court cases With its acquisition of Shoppers Drug Mart, Loblaw Cos. Consultancy Bain & Co. fore- The leather goods and sad- with Hermès, has since raised its Ltd. nabs a thriving pharmacy business. PAGE 8 casts the luxury goods market dlery division, which accounts stake to 22.6 percent. overall will grow by 4 percent to 5 for nearly half of all sales, posted “The AMF’s statement spoke With the disclosure of September’s advertising page totals percent in 2013, a slowdown from a gain of 6.9 percent in the sec- for itself,” Dumas said.
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