Page 1 Wednesday ▲ ▲ WEST: Economy FINANCIAL:

▲ FASHION: stalls downtown Prada Surveying L.A. retail projects, profi ts the crop of page 13. decline new ready- 22 percent, to-wear ▲ RETAIL: Michael page 2. designers, Kors’ upbeat opening page 4. in London, page 7.

Women’s Wear Daily • The Retailers’ Daily Newspaper • April 29, 2009 • $3.00

WWDWEDNESDAYSportswear Cape Town Not all caped crusaders are of the comic book sort. For the cool and chic, there are edgy versions, such as this cotton and metal embroidered one, worn over an acetate and polyester brocade dress, both from Gryphon New York. Rebecca Taylor belt; Hue tights; Robert Clergerie shoes.

Planning the Structure: Estée Lauder Cos. Sets Core Management Team By Molly Prior As Fabrizio Freda readies to ascend to the chief executive post, the Estée Lauder Cos. Inc. is rejiggering its leadership ranks in a move to gather key decision makers around one table to draft the future direction of the 63-year-old beauty giant. Freda’s new leadership structure and the other new appointments will become effective July 1. Replacing Lauder’s current structure of an executive committee comprised of group presidents and a regional head will be the Executive Leadership Team of 27 senior executives from all the brands, regions and functions. “The idea behind the structure is to create a more integrated organization,” said Freda, who joined the company as president See Lauder, Page 3 PHOTO BY ROBERT MITRA; MODEL: LINA FOR NEW YORK MODELS; HAIR AND MAKEUP BY MICHELLE COURSEY FOR ARTISTSBYTIMOTHYPRIANO.COM; FASHION ASSISTANT: GRETCHEN KATIGBAK; STYLED BY ANTONIA SARDONE STYLED BY GRETCHEN KATIGBAK; ASSISTANT: FASHION MICHELLE COURSEY FOR ARTISTSBYTIMOTHYPRIANO.COM; MODELS; HAIR AND MAKEUP BY MITRA; MODEL: LINA FOR NEW YORK ROBERT PHOTO BY 2 WWD, WEDNESDAY, APRIL 29, 2009 WWD.COM Prada Earnings Slide 22 Percent in ’08 By Andrew Roberts Prada said cash flow from operations and good working capital management made it pos- WwDwednesdSportswearay MILAN — Prada SpA on Tuesday added its name sible to maintain a balanced net financial posi- to the list of luxury firms blighted by the eco- tion, adding careful handling of the warehouse FASHION nomic downturn, reporting a 22 percent drop in had helped reduce product inventory. 6 New designers must figure out how to develop earnings in fiscal 2008. The group did not break down revenues by a luxury business around expensive clothes that For the 12 months through Jan. 31, net profits at brand or geography. have garnered praise but lack a core clientele. the Italian fashion group, which owns the Prada, Last year, Prada increased net investments by Miu Miu, Car Shoe and Church’s brands, fell to 68.8 percent to 158.7 million euros, or $231.7 mil- GENERAL 98.8 million euros, or $144.2 million, from 126.8 lion, to open 34 new stores, predominantly in Asia Estée Lauder is rejiggering its leadership ranks in million euros, or $173.8 million, in fiscal 2007. and Europe, and strengthen industrial facilities. 1 a move to gather key decision makers around one Dollar figures were converted at average ex- At the close of 2008, Prada’s directly operated table to draft the future direction of the beauty giant. change rates for the periods to which they refer. store network totaled 238 boutiques worldwide. Group revenues dipped 0.7 percent to 1.65 “In 2008 the Prada Group implemented the 2 Prada SpA, which owns the Prada, Miu Miu, Car billion euros, or $2.4 billion, although at con- most aggressive investment plan it has ever un- Shoe and Church’s brands said earnings fell 22 stant exchange and factoring in the same level of dertaken,” Bertelli said. “When the crisis is over, percent in fiscal 2008 to $144.2 million. consolidation of the Church’s brand, which was the Prada Group will be able to benefit from an A day after it announced a round of layoffs, acquired in June 2007, these gained 0.2 percent. industrial and distribution structure that is even 9 Hanesbrands Inc. held its annual meeting in “Above and beyond the uncertainty of the stronger than before in order to make the most Manhattan, while protesters picketed outside. moment, I am convinced that it is an entrepre- of the opportunities that will arise during the neur’s task to meet difficult times head-on with new development cycle.” MARKETING: The recession has reduced the s 10 a medium-long-term vision,” chief executive of- By channel, sales via directly operated stores consumer experience to drudgery for many ficer Patrizio Bertelli stated. gained 5.6 percent at constant exchange to 871.3 Americans, according to a new study. A company spokesman added Prada’s oft- million euros, or $1.27 billion, and were 1.5 per- The Sunglass Hut shop in Rockefeller Center in postponed initial public offering was not a man- cent up on a like-for-like basis. Wholesale rev- 12 Manhattan has been restaged this week as the agement priority for now due to the unfavorable enues fell 4.7 percent to 737.5 million euros, or first Prada Eyewear Concept Store. market conditions. $1.08 billion, which Prada attributed to the im- Earnings before interest, taxes, depreciation plementation of a selective distribution policy WEST: The recession has crashed the downtown and amortization fell 10.7 percent to 282.2 million and weaker demand in the U.S. market. A dress from J.C. 13 party conceived for car-obsessed Los Angeles, euros, or $412 million, which the company attrib- Revenue from royalties decreased 15 percent Penney’s I [Heart] short-circuiting a major push for retail. uted primarily to exchange rate fluctuations and to 39.5 million euros, or $57.7 million, due to the Ronson collection. efforts to strengthen the retail channel. consolidation of the sales campaign for the first Net financial indebtedness increased 6 per- Prada phone by LG, the company said. Classified Advertisements...... 15 cent to 537.4 million euros, or $784.6 million. For more on Prada, see page 12. To e-mail reporters and editors at WWD, the address is [email protected], using the individual’s name. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 197, NO. 90. 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 VF Profits Fall, Firm Lowers Forecast 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 pectedly deteriorated.” provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. By Ross Tucker Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage Revenues in the jeanswear coalition, home paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. NEW YORK — A highly diversified portfolio of to the Lee and Wrangler labels, fell 6.3 percent Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian brands and business segments couldn’t prevent to $667.4 million from $712.2 million. Much of addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS apparel giant VF Corp. from feeling the sting of the decline was attributed to weakening condi- CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA the accelerating downturn of the global economy tions in Eastern Europe and Scandinavia, which 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed during the first quarter. account for approximately 40 percent of VF’s on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all In addition to reporting a double-digit decline European jeans business. editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online in earnings for the three months ended March “The change in market conditions is impact- at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. 31, VF’s management said revenues were antici- ing our jeans business more than our other busi- Occasionally, we make our subscriber list available to carefully screened companies that offer products and services pated to fall between 5 and 7 percent in 2009, a nesses,” said Karl Heinz Salzburger, president that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT downward revision from earlier guidance of 3 to of VF International. “This sudden change marks RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, 4 percent declines. Earnings per share are ex- a big reversal in trends for us.” UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR pected to be in the range of $4.70 to $5.00, com- The domestic market proved a bright spot for ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY pared with $5.42 in 2008. Management will also the jeans segment. Wrangler turned in a 3 per- WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE no longer provide quarterly earnings guidance cent revenue gain in the U.S. while the Lee brand ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. going forward. achieved a 7 percent increase, and both labels “Our results do confirm that we continue captured larger shares of the market in their to face extremely challenging condi- distribution channels. Revenues grew tions that affect each of our busi- by 15 percent in Asia as well. DAILY nesses in one way or another,” said Revenues for the outdoor and We are all pulling in the Eric Wiseman, VF’s chairman action sports segment fell 4.8 per- QUote “ and chief executive officer, in a cent to $605.9 million from $636.2 same direction, almost conference call with analysts. million. The North Face bucked Three factors were cited as the trend, however, with dou- like a crew team on the water. the primary challenges facing ble-digit revenue gains on a ” the company going forward. Eric Wiseman constant currency basis. — William Lauder, current chief executive officer VF’s jeans business is being se- The company’s youngest of the Estée Lauder Cos. Inc., on the firm’s planned verely impacted by weakening business segment, contempo- new management structure. Page one. economic conditions in Eastern rary brands, suffered a setback Europe and Scandinavia. Rising as economic conditions contin- unemployment in the manufac- ued to weigh on high-tier busi- turing and petrochemical segments ness segments. Premium denim is expected to continue to impact uni- giant Seven For All Mankind and the Lady GaGa at TODAY ON form sales in the imagewear segment, Lucy brand, in particular, saw declines. Lollapalooza and weakness in high-end department and spe- Wiseman said Seven’s wholesale business in 2007. cialty stores continues to harm premium denim in the U.S. and Europe is faltering along with label Seven For All Mankind. major department stores. It’s a similarly dire sit- First-quarter earnings dropped 32.2 percent uation in the specialty-store channel where con- to $100.9 million, or 91 cents a diluted share, ditions have forced owners to shut their doors. falling short of consensus estimates of 94 cents “With the specialty stores, we’re losing a lot WWD a share. In comparison, the company reported of customers,” said Wiseman. “Not that they’re .com earnings of $149 million, or $1.33 a share, in the dropping the brand, but those customers are same period a year ago. While sales gains were going away.” tough to come by in the majority of the world’s The sportswear segment saw revenues de- developed markets, higher pension costs and the cline 13.5 percent to $103.6 million from $119.7 adverse impact of currency exchange rates ham- million, and the imagewear business fell 8.3 per- pered results by upwards of 20 cents a share. cent to $226.7 million from $247 million. • Back in Time: Revenues slid 6.5 percent to $1.72 billion Management warned economic trends have Lady GaGa Revealed from $1.85 billion. Sales also fell 6.5 percent to continued into the second quarter, which is tra- • More images from the $1.71 billion from $1.83 billion, while royalty in- ditionally the worst performing period of the come declined 13.7 percent to $18.2 million from year. Results are expected to improve in the sec- Forever 21 store opening $21.1 million. ond half, and Wiseman noted the company’s larg- in Tokyo and the Michael iner

“We’re not planning for any improvement in est and most powerful brands — Wrangler, The M Kors opening in London the macroeconomic conditions this year,” said North Face, Lee and Vans — are gaining share sie

Jo • Global breaking news Wiseman. “While our first-quarter results were in their markets and account for 60 percent of o by largely as we expected, we’ve seen a few areas revenues. VF also opened 19 stores during the t • WWDBlog on the o h where conditions have significantly and unex- quarter and is on pace to open 70 for the year. P WWD Sourcing Forum WWD, WEDNESDAY, APRIL 29, 2009 3 WWD.COM Lauder Puts Team in Place Aveda Recognized Continued from page one Lauder’s entrepreneurial think tank. Dominique Conseil, For Green Effort and chief operating officer in November 2007. “Together we president of Aveda, will become the global brand president of Aveda, the Estée Lauder Cos. Inc.’s will work in a more multifunctional way. Before, the com- Aveda, salon and pharmacy channels. Peter Lichtenthal will 30-year-plus environmentally friendly beau- pany had little integration among the brands, affiliates of the continue in his role as president of Bumble and bumble, along ty brand, has become the first beauty divi- brands and the regions.” with the Darphin brand, and will report to Conseil. sion to receive a Cradle to Cradle (C2C) sus- The incoming ceo and president also has established a In keeping with Freda’s pledge to leverage the strengths tainability endorsement, a recognition that subcommittee called Project Management Team, charged across the markets internationally, the new structure is de- applauds a company’s efforts in developing with implementing the strategies born out of the ELT. On signed to build upon the company’s regional scale. “The cre- products with a goal of eliminating waste. this team, about a dozen members of the ELT will spearhead ation of the regions and strong organizations have the intent Aveda received Gold C2C designation for the firm’s roughly 10 key restructuring and cost-saving proj- of increasing local relevance at reduced costs,” Freda said, seven products and Silver C2C designation ects, a number of which have grown out of the previously emphasizing the importance of the regional arm of the lead- for its packaging. The Gold certified prod- revealed multiyear restructuring plan. ership structure. That said, Thia Breen, global president ucts are: Aveda Smooth Infusion Shampoo Freda will lead both the ELT and PMT, with William Lauder of the Estée Lauder brand, will become president of North and Conditioner; Aveda Dry Remedy heading the newly established Investment Development America, a newly created position. Cedric Prouvé, group Moisturizing Shampoo and Conditioner; Committee, in his upcoming role as executive chairman. This president of International, will continue to have the follow- Aveda Men Pure-Formance Shampoo and small group of about five senior executives will consider and de- ing direct reports: Fabrice Weber, president Asia Pacific Conditioner, and Green Science Firming cide on proposals for new business ideas and potential acquisi- Region; Ivan Fernandez, president Europe, Middle East Face Creme. The endorsement comes from tions, said Lauder, the company’s chief executive officer. and Africa; Olivier Bottrie, president Travel Retailing sustainability consultancy McDonough Referring to what will be his new post, Lauder Worldwide; Per Neuman, general manager Estée Braungart Design Chemistry, LLC (MBDC), said, “Fabrizio and I found a way to balance and Lauder UK, and the newly created region of Latin the firm that pioneered the concept of Cradle take advantage of our strengths. This [position] America led by Daniel Rachmanis, who will to Cradle design, and Hamburg, Germany- allows me to focus on the things I enjoy the become senior vice president Latin America based Environmental Protection and most.” He added the pair plans to work togeth- and Business Development. Both Breen and Encouragement Agency (EPEA), its affiliate. er without “duplicating efforts.” To foster that Prouvé will report directly to Freda. Aveda’s president, Dominique Conseil, leadership style, Lauder noted their offices On the functions side, reporting to the said in 2002 he opened up the company’s are about “10 steps from one another.” ceo will be Harvey Gedeon, executive vice “trade secrets and formulas” to the EPEA Fabrizio president, research and development and to get feedback from a third party author- Freda product innovation; Gregory Polcer, execu- ity on toxicity, ingredients and packaging. tive vice president, global supply chain, and While Aveda was praised for many of its ef- Beauty Beat Dennis McEniry, president of ELC Online. forts, for example its reuse of box comps to “We are all pulling in the same direction, al- Amy DiGeso, executive vice president-glob- make company-branded folders, not every- most like a crew team on the water,” said Lauder. al human resources, and Richard Kunes, execu- thing was agreed upon, said Conseil. EPEA To leverage the company’s scale, the upcoming tive vice president and chief financial officer, will objected to the company’s use of a certain leadership structure will organize brands into four have dual reporting to both Lauder and Freda. ingredient used in one of Aveda’s salon categories, determined according to channel and consumer Sara Moss, executive vice president and general counsel, color products. segmentation. The team will include John Demsey, group Alexandra Trower, executive vice president-global communi- Objections aside — the ingredient re- president of the Estée Lauder, MAC Cosmetics, Tom Ford cations and Deborah Krulewitch, senior vice president cor- mains in the hair color as EPEA has rec- and Prescriptives brands, who will add the Specialty Group porate administration, will continue to Lauder. ognized no natural alternative exists — of Bobbi Brown, La Mer and Jo Malone to his portfolio. A number of executives who will lead PMT projects in- Aveda is indeed the first beauty company Reporting to Demsey and taking on a new role will be: Jane clude, but are not limited to, Kunes, Breen, Prouvé, Demsey, to receive such an endorsement, and only Hertzmark Hudis, president of BeautyBank, Origins and DiGeso and Polcer, said Freda. the third company overall. (A carpet manu- Ojon, and will become global brand president of the Estée Save for Polcer, the newly determined leadership team facturer in Vienna, Backhausen Interior Lauder brand; Maureen Case, who will continue as the glob- reorganizes a cast of long-standing Lauder employees. Textiles, and Method home and personal al brand president of the Specialty Group and oversee the Referring to his decision to promote from within, Freda said, care products, are the other two firms Bobbi Brown, La Mer and Jo Malone brands, and Caroline “We have some great talent with a lot of expertise and conti- that have also received the endorsement.) Geerlings, who will continue in her role as senior vice presi- nuity. The new structure is designed to better leverage that Aveda does not plan to market the endorse- dent/general manager, Prescriptives. internal talent.” ment on its products with a seal or notifica- Lynne Greene, global president of Clinique, will become Freda will join the board and will report to Lauder. tion. However, shelf talkers, for example, the global brand president of the Clinique, Origins and Ojon The collaborative structure, Freda said, reflects his man- will point out the recognition. brands. Reporting to Greene will be Jane Lauder, the senior agement style. “I am very comfortable working in a team envi- “We want people to buy our products vice president/general manager of Origins. ronment,” he said, adding that part of leading a team is mak- for what they do,” said Conseil. “It is part Veronique Gabai-Pinsky, who now oversees Aramis and ing sure all the voices are heard. The second part, he asserted, of the value proposition, not the selling Designer Fragrances, will become the global brand president, is making the final decision on how to move forward and then proposition.” Aramis Designer Fragrances, BeautyBank and IdeaBank, moving the team toward that goal with “excellence.” — Andrea Nagel

Diane Kruger MEMO PAD on the cover a spokeswoman confirmed a Reuters report set out to write. When they began piecing of T. Tuesday evening that there is a tentative together their proposal in 2006, most of the WHO’S WHO: Stella McCartney joins the agreement with the Newspaper Guild of company principals were ready to cooperate group of media moguls, politicians, New York to cut union worker pay at the — including Choo founder and president scientists and other leaders who have Times by 5 percent, which would save the Tamara Mellon, former chief executive earned spots on the Time 100 in the past company $4.5 million. Earlier this month, officer Robert Bensoussan and Lyndon six years. This year, McCartney is the nonunion members were also affected by Lea, a former owner and investor. “We only fashion name on the list (that is, if pay cuts. — Amy Wicks approached them, and they were cautiously you count First Lady Michelle Obama as a enthusiastic,” Crowe said. “What we didn’t political power instead of fashion icon). In STILL STRONG: Michelle Obama’s newsstand realize is that by the time we actually sold the past, the list has included the likes of appeal translated into above average sales the book, the relationship between the three Karl Lagerfeld, Carine Roitfeld, Tyra Banks for Vogue this spring. The March issue, was deteriorating.” and Kate Moss. Time 100’s brightest are where the First Lady wore clothes she Bensoussan eventually left the business, profiled by their peers for the annual list, handpicked from J. Crew and Jason Wu, and Lea, founder of Lion Capital, flipped his and Gwyneth Paltrow bestowed praise for sold 560,000 copies on the newsstand, just investment to TowerBrook Capital, Choo’s McCartney’s “uncanny mélange of passion edging out their most recent best-selling current owners, in 2007. When research and cool.” Paltrow also said the designer issue on the newsstand in September 2008, began in earnest later that year, Mellon has a talent for convincing carnivores to which hit 559,000 copies. The March and Bensoussan had already changed their become vegetarians. “Even if you are not results trounced last year’s newsstand sales: minds because it was a project they couldn’t interested in being a vegetarian, somehow Drew Barrymore’s cover turn sold 397,000 control, said Crowe. Lea was the only one of Stella gets you to believe. She manages Sunday rather than as a stand-alone issue. It copies. The First Lady has been featured on the three to speak on the record. So Crowe to convince you (never sanctimoniously, will begin on page 49, with a cover featuring the covers of Ladies Home Journal, More, and Maceira de Rosen started digging around never from a soapbox) that killing animals Diane Kruger, shot by Jean-Baptiste Mondino. Ebony, People and Us Weekly, however sales Mellon and Bensoussan. One of the book’s is needless and cruel and bad for the Inside the Cannes-themed issue, Quentin for those titles have varied. (According to main, firsthand sources is Mellon’s estranged environment. It may last the duration of just Tarantino (wearing women’s heels) is featured Advertising Age, sales for the September mother, Ann Davis Yeardye. “She helped one dinner, but you start to feel a bit sad for in a Q&A with Lynn Hirschberg, Spanish issue of Ladies Home Journal with both her enormously, and she didn’t have an ax to your neighbor’s lamb and a bit embarrassed filmmaker Pedro Almodóvar is profiled, and and husband President Barack Obama on the grind,” said Crowe. “She saw herself as the by your chicken.” The Time 100 issue will Inez van Lamsweerde and Vinoodh Matadin cover were 21 percent smaller than the year voice of Tom Yeardye [Tamara’s late father] be on sale Friday; McCartney, Roitfeld and shot seven actors who emerged as stars prior.) Obama is also featured on the April who helped build the business.” many of their list mates will gather at Time after appearing in films at the Cannes issue of O, The Oprah Magazine, along with Crowe added that, eventually, Warner’s Jazz at Lincoln Center on May 5 International Film Festival, including Uma Oprah Winfrey, and the May issue of Essence “emissaries were received from nearly all for its annual gala. — Stephanie D. Smith Thurman, Vanessa Redgrave, Maggie Cheung with her mother, Marian Robinson. — S.D.S. camps.” The exception was the eponymous and Björk. “We decided to do an issue about Jimmy Choo, who left the business he NOT STANDING ALONE: Clearly the advertising Cannes because it’s one of the biggest events STILETTOS IN A MINEFIELD: “The Towering founded in 2001, and who signed a cutbacks by the fashion and luxury goods in contemporary culture,” said T editor in World of Jimmy Choo: A story of power, previous agreement not to speak to the sector have hit T: The New York Times Style chief Stefano Tonchi. “It brings fashion, profits, and the pursuit of the perfect shoe” press about his relationship with Mellon magazine. The women’s summer issue of movies and luxury together. I mean, whatever (Bloomsbury) lands in stores this week, but or the company. Mellon is maintaining her T will appear in a special 24-page “bonus is left of luxury at the moment.” it’s not the book authors Lauren Goldstein silence: She did not return phone calls section” of the New York Times Magazine on And speaking of the New York Times Co., Crowe and Sagra Maceira de Rosen initially seeking comment. — Samantha Conti 4 WWD, WEDNESDAY, APRIL 29, 2009 New in Town The mood at Prabal Gurung’s debut presentation in early February reflected his sculpted and glittery ready-to-wear — a feather-dusted cream cocktail dress; a crimson stunner worked into an enormous bow — which is to say it was glamorous and unrestrained. Cynthia Rowley, a former employer and mentor to Gurung, giddily wrapped the designer in a bear hug, while the actress Zoe Saldana, whom Gurung dressed for events during his years as a designer at Bill Blass, bounced on her heels while in line to greet him, exclaiming to one editor, “I flew all the way from California for this!” For Gurung, in that moment at least, it seemed the recessionary cloud that hovered over so many fall shows had drifted elsewhere. Skip ahead two months, and Gurung, along with a group of his designer counterparts — fresh names like Bibhu Mohapatra, Matthew Ames and Nima Taherzadeh — are facing the realities of the difficult economy. “I started my business plan nine years ago, and my plan was always to launch in fall 2009,” Gurung explains. When Bill Blass shuttered in November and he left his design director position after five years, Gurung was already working on his own 21-piece lineup (as well as designing for private clients), though he did not anticipate this year’s shattered retail climate, nor the steep drop in wholesale pricing that many buyers are attempting to negotiate with designers. Yet while Gurung added a few jersey column dresses to the collection at the behest of buyers from Bloomingdale’s, where the lineup will be sold in the fall, he has otherwise stuck to his plan to grow slowly and maintain a grand aesthetic. “Tough times are when creativity is at its peak,” Gurung says. “You take everything into consideration and you come up with something that is desirable, aspirational and practical. My clothes are very expensive, but women will wear them for many years.” Optimism aside, these designers must now answer the question of how to develop a small luxury business around expensive-to-produce Tough times are clothes, which have garnered praise but lack a core “ clientele. Not surprisingly, resisting the kind of when creativity is at overt trendiness that dates a look — the ubiquitous spring harem pants, for instance — is a priority for its peak. You take those starting out in the uberpricy designer category. “People don’t want to buy things that belong to a everything into certain season. You have to make clothes they can keep in their closet all year round,” says Taherzadeh, consideration and who launched his line, Nima, two years ago and now sells in Saks, Bloomingdale’s and specialty stores you come up with such as Stanley Korshak. Taherzadeh, like Gurung, makes elegant, expensive clothes: a purple silk poplin cocktail dress retails for $995, while a black something that is leather and organza cropped jacket with zipper trimming goes for $2,490. And also like Gurung, desirable, aspirational Taherzadeh received rave reviews (his best yet) for fall, which he admits have yielded few new orders and practical. despite an initial rush of buyer interest. Taherzadeh — Prabal” Gurung has, in fact, found himself busy tweaking signature pieces for the stores he already has. “I have these leather jackets that are quite light, and you can wear them all the time, so I’m making more of those and adding accents to them,” he says. “For me, the only reason that I can keep going is that these things are still selling.” Yet while he’s happy to accommodate buyers by increasing production of certain items, Taherzadeh has no plans to tone down the flourishes on his day and evening pieces. “Now is not the time for basics,” he adds. Call it sticking to one’s creative guns — a sentiment Matthew Ames, a 2009 Ecco Domani winner who showed his lineup of cocoon dresses and coats for the first time in February during New York Fashion Week, echoes. “[For] a new designer, [the economic climate] can be a good time, because people are looking for new things to put in their stores,” he says. Ames’ pieces, many of which are reversible and loose-fitting, evoking a Zoran-esque minimalism, may be more understated than Gurung and Taherzadeh’s (think cool creams, taupes and blues in cashmere and wool, with coats retailing for up to $2,000), yet he is confronting similar questions about how to design limited luxury pieces. “Certainly my clothes aren’t for everyone,” says Ames, whose line is sold at Takashimaya in New York and Forty Five Ten in Dallas, among other small boutiques. “But the stores are telling me that spring is selling well, and I do think it’s because these aren’t clothes you get everywhere and they aren’t easily recognizable. I’m interested in creating a timelessness.” There it is again — timelessness, “endurability,” as J.Mendel alum Bibhu Mohapatra characterizes his take on rtw. Mohapatra, who launched his line with a packed presentation high above Bryant Park in early February, has so far sold pieces only to the Greenwich, Conn. boutique Dighton Rhode and Philadelphia’s Adresse, though he is in negotiations with several other boutiques for fall. He says a number of stores and major retailers expressed interest in his designs, but tightened budgets prevented them from writing orders. “I specifically designed a capsule collection for my debut season,” he says, “and, consequently, our initial sales projections were set very conservatively.” Mohapatra notes that while the larger retailers were enthusiastic about his day dresses (average retail price: $1,500), boutiques were keen on his eveningwear and furs (which go for up to $16,000). The common thread in Mohapatra’s clothes is rigorous construction. “The way I was trained, the clothes don’t have to have embellishments. They just have to be super well-made, even if it is just a canvas coat,” Mohapatra explains. “If somebody is spending $1,500 on a garment, they want to make sure they are getting something that will last and be made well. The challenge is how to make it approachable to buyers and customers who don’t know my name yet.” That challenge may be eased by the fact each of these designers is taking private orders — such as the ostrich feather-tufted wedding gown Gurung is making for a longtime client getting married this summer — to keep their businesses afloat, a practice that will, ideally, get women on the charity and red-carpet circuit asking each other, “Who made that?” And despite their short store lists, all are prepared for what Gurung calls “a slow start,” insisting they’re in it for the long haul. “I’m making investment clothes,” says Gurung. “A few very well-made pieces will always be better than a whole closet of mediocre ones.” Matthew Ames — Sarah Haight WWD, WEDNESDAY, APRIL 29, 2009 5 WWD.COM Nima FASHION SCOOPS MICHELLE’S LATEST CHOICE: For the unveiling of the list, so it’s news to me,” said Stroll. While he stopped bust of abolitionist Sojourner Truth at Emancipation short of attributing all of that increase to the success of Hall on Tuesday, Michelle Obama chose yet another the Kors business, Stroll said: “We are certainly doing new designer (Sophie Theallet) and familiar silhouette very well.” Mohammed al Fayed was the 11th biggest (narrow waist, full skirt). Yet the choice was especially riser on the list, with a fortune estimated at $954 savvy given that Theallet, a French-born, Brooklyn- million after Harrods Holdings increased its profits to based designer who is a 10-year veteran of Azzedine $81.7 million in 2008. Meanwhile, Natalie Massenet, Alaïa (another Obama fave), was the only designer to the founder of Net-a-porter, has made it onto the use an entire casting of black models for her debut paper’s list of the top 2,000 richest people in Britain, spring 2009 runway show. “When I was designing with a fortune of $79 million. Massenet also ranks as New in Town that first show, which was before the election, I Britain’s 98th richest woman. was just thinking about colors,” said Theallet, who noted she found out the First Lady was wearing the striped shirt dress while poking around the Internet on Tuesday afternoon. “I think that black models and black skin are very beautiful, and I wanted to express that. When people saw my clothes, they said, ‘Oh, Michelle, she would be so good in these clothes.’ She’s a beautiful lady and she is very well-dressed and she looks stunning all the time. Especially on this day, for this occasion, I’m honored.” About a month ago, Theallet said, she sent the shirt dress to Ikram Goldman, the Chicago boutique owner who has been acting as Obama’s personal shopper and stylist. While ITZ

Goldman’s store, Ikram, does not carry Theallet’s line, W Goldman did attend Theallet’s fall 2009 runway show, LEIBO

and Goldman herself placed the order for the dress, the K measurements for which Theallet respectfully declined AR M BY to give. Theallet did add the dress, which is sold at Jeffrey and Barneys New York, was accounted for once

it arrived: “My business partner handles these things, PHOTO but yes, it was paid for. Someone sent a check.” Backstage at John Galliano.

CLOSING SHOP: Hogan, the Tod’s SpA-owned sport BACKSTAGE PASS: John Galliano fans can get a glimpse inspired luxury inspired accessories brand, is closing of all the behind-the-scene antics of last year’s two its sole U.S. store. The Spring Street boutique in runway shows, thanks to lensman Mark Leibowitz. Laura Manhattan will shutter its doors in June. A Tod’s Blokhina and Lily Donaldson are among the models spokesman said the firm is looking to open a Hogan captured by the Glamour photographer. Once the store uptown reflecting the new retail concept it will pics are packed up in New York on Friday, their next launch soon. “We are taking advantage of this moment destination is the Cannes Film Festival, where they and that fact that the lease was expiring to finally find will be shown at a yet-to-be-named location. Mayor an uptown location that will have the right size and Michael Bloomberg’s interior decorator Jamie Drake and visibility,” said the spokesman. “This is going to be Ivanka Trump were among the 200 guests who eyed the a very positive upgrade. Hogan today is the highest kaleidoscopic images at a party Saturday night. growing brand for Tod’s Group. We foresee a very positive growth in the U.S. market.” LUXURY LOVE-IN: Mulberry’s in the mood for love. Bibhu The British label was so taken with Chris Craymer’s Mohapatra TOP WHITE T-SHIRTS: Topman is launching its fourth photographs of loved-up couples that it plans publish project in which it invites a handful of designers to his latest book, “Romance.” Craymer’s work, which is Prabal create a version of a wardrobe staple. Past projects characterized by witty shots — one picture captures Gurung have featured white shirts, sunglasses and black a couple kissing under a giant lampshade — will be trousers. This time white T-shirts are getting the displayed in Mulberry’s store windows worldwide. To designer treatment from Richard Chai, Phillip Lim, fete the launch, Mulberry’s creative director, Emma Juun J, Henry Holland, J.W. Anderson and Christopher Hill; Steven Kolb, executive director of the Council of Shannon. Anderson and Shannon were both selected to Fashion Designers of America, and Craymer will host participate in the retailer’s MAN show during the most a party in New York on May 14 where signed copies recent London Fashion Week. The T-shirts will launch of the books will be sold and framed prints will be online and in a few select Topman locations, including auctioned, with proceeds to benefit the CFDA. New York and Oxford Circus, London, on May 28. In addition, designer Antony Price has designed a second “Priceless” collection for Topman, which launches May 14. Price is best known for his fashion influence on Brian Ferry and Roxy Music, as well as David Bowie and Duran Duran. The retailer’s affair with Eighties style shows no signs of cooling.

SCHOOLHOUSE ROCK: The likes of Tory Burch, Tim Gunn and Dana Buchman gathered Monday night at Westside e Chinsee g Loft to raise funds and awareness for Promise, the Center for Attention and Learning Disorders at Lenox

Geor by Hill Hospital. In Style magazine’s Cindy Weber- g Cleary and Glamour’s Sasha Iglehart helped cochair the event, along with chair Dana Buchman, to solicit brands such as Chanel, Kara Ross and Fendi to donate their finest accessories for the organization’s second annual Designer Accessories auction and cocktail. “It’s like putting on a collection — minus the staff,” Centeno; Gurun alaya T said Buchman, who seems to be enjoying the retired lifestyle, although she is working hard to support the cause. The auction raised $200,000. eherzadeh by

T FICKLE FORTUNES: London’s Sunday Times last weekend published its list of Britain’s 1,000 richest people for The Chris Craymer picture to be featured in 2009, and Britain’s tycoons are suffering — for the Mulberry’s windows. most part. Over the past year, De Beers chairman Nicky Oppenheimer has seen his fortune fall by $2 billion to VERA CALLING: Vera Wang just put her design touch on a $2.2 billion; Topshop owner Sir Philip Green and his different kind of accessory — a BlackBerry smartphone Giannoni; Giovanni wife Lady’s money pile shrunk by $733 million to $5.6 from Verizon Wireless. The designer, who is nominated

es by billion; while Sir Anthony Bamford lost $1.4 billion and for an Accessory Designer of the Year award by the Am has a new net worth of $1.3 billion. All figures have Council of Fashion Designers of America, created the been converted from the pound at current exchange. Swarovski crystal encrusted piece for the The Breast quino; A Green, however, is now Britain’s sixth richest man — he Cancer Research Foundation, which was founded by was number nine last year. Lakshmi Mittal, the steel Evelyn Lauder. The smartphone will be raffled off by John magnate and his family occupy the top spot on the Elizabeth Hurley at the Hot Pink Party on Thursday. by list with an estimated fortune of $15.8 billion. But There will no shortage of suitable candidates for the

PHOTO not everyone saw their fortunes dip: Lawrence Stroll, prize. The gala, at the Waldorf-Astoria, is expected to Michael Kors’ backer, saw his net worth rise by $193 draw guests such as Michael Kors, Donna Karan and million to $468 million. It was the list’s fifth largest Jane Krakowski, as well as a performance by Sir Elton

Mohaptra increase during the year. “I actually haven’t seen the John and Liza Minnelli. 6 WWD, WEDNESDAY, APRIL 29, 2009 WWD.COM Forever 21 Makes Foray Into Japanese Market

By Amanda Kaiser lease in November, although he denied that having H&M as a neighbor infl uenced the decision. “We liked the potential of the space,” he said. TOKYO — Forever 21 is about to open its first store in Japan, raising the fast-fashion That space, divided into fi ve levels, carries the brand’s full product offering, from stakes in the world’s second-largest economy. fl oral sundresses and Seventies-style gym shorts to platform heels and embroidered The almost 19,000-square-foot fl agship, which opens today, is just the fi rst step of the tops. Prices range from 480 yen, or $4.96, for a simple V-neck T-shirt to 6,400 yen, or California-based retailer’s aggressive push into the Japanese market. Executives said $66.17, for a dress adorned with feathers. Women’s wear and accessories occupy the the chain is gunning to have as many as 100 stores in the country, although the timing of lower four fl oors of the store while men’s items are housed on the fi fth. Meyer and the rollout hinges on fi nding the right locations. Don Chang said Forever 21 might be able to secure the upper fl oors of the building “It’s a big market in the world so it’s a place we want to play,” Larry Meyer, execu- and expand the men’s wear offering at some point. tive vice president of Forever 21, told WWD. “If it’s fi ve years, if it’s 10 years [to reach The store’s interiors, apart from the men’s section, have a girly air with white 100 stores], it all depends when we walls, pink and yellow accents and plenty of chandeliers. James Nakaoka, get the right real estate.” president of J.T. Nakaoka Associates Architects, which designed the store, That’s not the only news from said the fl agship aims to make women “feel feminine again.” the Los Angeles-based chain. Next The Tokyo store fi ts in with Forever 21’s broader strategy to open year, the retailer plans to open its larger retail formats both at home and abroad. It’s planning to open a fi rst stores in the United Kingdom 126,000-square-foot store in Las Vegas’ Fashion Show Mall by May of next and Spain as well as a massive Las year and an 80,000-square-foot store at Los Cerritos Center, a Macerich- Vegas flagship, executives said. owned mall near Los Angeles, later this year. Spaces that large are hard And designer collaborations could — if not impossible — to fi nd in Japan, but executives said they hope to also be in the works, according to secure locations of at least 16,000 square feet, and that’s become easier and Linda Chang, the company’s se- cheaper in the economic downturn. nior marketing manager. “Yes, we do have some in mind. We haven’t come out with anything yet so we’ll just have to see in the fu- ture,” she said, without elaborating. Forever 21’s new Tokyo store is located next to Hennes & Mauritz’s fl agship and just down the road from Gap, Topshop and Uniqlo on Harajuku’s bustling thoroughfare Meiji Dori. Meyer declined to pro- vide a sales forecast for the store but said he expects the fl agship’s affordable fashions, replenished daily, to sell well in recessionary Japan. Both Uniqlo and H&M have been thriving while department stores and luxury goods compa- nies are suffering in a dismal re- tail climate. On Tuesday, Japan’s Ministry of Economy, Trade and Industry said March retail sales declined 3.9 percent, registering their seventh consecutive month Two views of the Forever 21 shop in Tokyo. of contraction. “We think this will be one of the In terms of generating name recognition in Japan, Meyer said the brand best in our chain — if not the best in has done more advertising here than it ever has, although he declined to our chain,” Meyer said. quantify the investment. Forever 21 is on track to post That was probably money well spent, according to Nicole Fall, trend 2009 sales of between $2.3 billion and $2.4 billion, Meyer said. Even if revenue comes in director at Tokyo-based consumer consultancy Five by Fifty. on the lower end of the spectrum, that still represents more than 35 percent growth on “I don’t think Forever 21 has strong brand recognition within the Japanese market, 2007’s fi gure of $1.7 billion. so consumers may need coaxing into stores to understand its product offering,” she Don Chang, Forever 21’s chairman and chief executive offi cer, described the com- said. “It will need to take a unique approach in targeting recession-weary consumers, pany as “the fastest-growing retailer in the U.S.” About 98 percent of that turnover is who quite frankly appear to be cutting right down on fashion expenditure.” generated through Forever 21’s network of more than 450 stores, but the chain is look- On the publicity front, Forever 21 has been making plenty of news on its home turf, ing to diversify geographically. Meyer said the company is expecting its international albeit not of the positive sort. Over the last three-and-a-half years, the company has been growth to be “substantially faster” than that of the U.S. and could represent a third of sued more than 50 times for copyright infringement. Most recently, the fast-fashion chain’s the company’s revenues within the next 10 years. founders, Do Won Chang and Jin Sook Chang, faced depositions this month for allegedly So far, Forever 21’s international expansion has focused on Canada, Asia and the copying nine garments from Anthropologie’s collections. Don Chang referred to the al- Middle East. The chain has stores in 12 foreign countries including China, Malaysia, leged infringements as an “accident” and blamed the problems on its network of vendors, South Korea, Kuwait and Saudi Arabia. which it can’t completely control as it manages an inventory of several million pieces. Meyer said the retailer found the Harajuku location in September and signed the “We have a $1 billion company,” he said. “That issue is really small.” CFDA Names Scholarship Winners Missoni Opens in London, Casablanca NEW YORK — The Council of Fashion Designers of America has named the 2009 recipients of the Geoffrey Beene Design Scholarship By Samantha Conti ahead. The unit in Casablanca opened last week and CFDA Scholarship, which total $75,000. and marks the company’s fi rst store in Africa. Niloufar Mozafari, a student at Parsons The New School for LONDON — Missoni is continuing its retail push, Covering 1,566 square feet over two fl oors, the Design, will receive the Geoffrey Beene Design Scholarship opening its first stand-alone store here as well as store carries Missoni’s women’s apparel and ac- worth $25,000. a unit in Casablanca, Morocco. cessories collections and the home line. A gold- Mozafari was judged by a panel of experts who were close to The three-story London unit on Sloane fringed lamp from the home collection stands Beene, who died in 2004, including Geoffrey Beene senior vice presi- Street carries the brand’s main collections, out in the entrance, and a staircase with crystal dent and chief operating offi cer Russell Nardozza; Paper Magazine including home. rails and iridescent natural vinyl steps leads to editor Kim Hastreiter and designers Narciso Rodriguez, Doo-Ri “It only took 56 years for us to do it,” creative the second fl oor, which is dedicated to home. Chung, Richard Lambertson and Stan Herman. The scholarship was director Angela Missoni said with a laugh of In early July, the brand’s largest-ever store created in 2007 with an endowment made by the Geoffrey Beene opening the London store. “We’d been postpon- will open in Los Angeles, on the corner of North Foundation, and the winner will be offi cially announced at the CFDA ing it for years. I wanted to open here 15 years Rodeo Drive and Santa Monica Boulevard. That Fashion Awards on June 15. ago because England has always been a very store will span 6,900 square feet. Mozafari is also one of the winners of this year’s CFDA good market for us. But we were small and doing A 1,300-square-foot unit carrying swimwear Scholarship. She will receive an additional $10,000 as part of this everything ourselves. Now that we’ve started to and beach-oriented accessories will open simul- scholarship, which will also give Yunqi Wu of the Academy of Art put an organizational structure in place, we can taneously in Malibu. A 3,300-square-foot unit in University in San Francisco, and Atsuko Yagi of Parsons $10,000 focus on these projects.” Beirut, Lebanon, will open later this year. each. Yagi will receive the Clara Hancox Scholarship Award for The 3,500-square-foot store is housed in the The stores are a mix of wholly owned units Menswear Design. former Nicole Farhi space, and the neutral inte- and franchises. London is a franchise and Los The CFDA Scholarship is also awarding $5,000 each to Thomas riors are fashioned from stone, glass and steel in Angeles is a company-owned store, Missoni said. Finney of Savannah College of Art and Design, Arianna Isabel Perez the style of the Milan and Madrid new-generation The brand’s overall sales have been holding of the Academy of Art University and Trey Phillips and Dylan Paul fl agships. Missoni declined to give projections up, Missoni said, considering the worldwide cri- Moran Taverner, both of Parsons. They were chosen by a selection for the fi rst year, although she said sales have sis. Sales of the fall pre-collection were down 7 committee that included Italo Zucchelli of Calvin Klein Collection, been healthy at the store since its soft opening in percent year-on-year. The fall main collection Jeff Halmos of Shipley & Halmos, Kari Sigerson of Sigerson December. Bestsellers include an asymmetrical market has not closed yet, but Missoni said she Morrison, Gerard Yosca, Rebecca Taylor and Charlotte Neuville. dress and a sequined tunic, both priced at 2,070 expects sales to be down “around 11 percent.” The CFDA Scholarship program is in partnership with Geoffrey pounds, or $3,063 at current exchange. Italy, she said, was particularly robust, with sales Beene and supported by designer Joseph Abboud. And while the London opening may be a having increased slightly this year. — Marc Karimzadeh milestone for the Missonis, there are more — With contributions from Luisa Zargani, Milan WWD, WEDNESDAY, APRIL 29, 2009 7 WWD.COM Gucci Group Designers’ ‘Home’ Works Kors Hits London to Fete Opening By Miles Socha PARIS — Leave it to Alexander McQueen to create a powerful visual message about the planet’s perils by rearranging the continents, via photo manipulation, into the shape of a skull. That striking image appears on a scarf and is among special prod- ucts and projects Gucci Group’s designers have envisioned to promote the June 5 release of “Home,” the PPR-sponsored film by Yann Arthus- Bertrand designed to raise environmental consciousness on a global scale. Produced by Luc Besson of “The Fifth Element” fame, the docu- mentary can be seen on World Environment Day in cinemas, on televi- sion, on DVD and on the Internet. McQueen’s organic cotton scarf, limited to a run of 200, will be sold at McQueen boutiques and online in the U.S. starting in June, priced at 185 euros in Europe, and $285 in the U.S. Profits for all film-related products are to be donated to Goodplanet. org, Arthus-Bertrand’s environmental-protection charity. Gucci’s Frida Giannini and Yves Saint Laurent’s Stefano Pilati each Alison Green and opted for T-shirts. Giannini’s — in naturally dyed organic cotton and Karen Groos packaged in recycled materials — melds the Italian brand’s iconic “GG” symbol into the film’s logo and comes with a white canvas bag for By Samantha Conti 140 euros, and $195, in select Gucci stores beginning May 25. “Anyone who watches this film will not fail to be deeply moved by the incredible LONDON — Michael Kors made a lightning visit imagery,” Giannini stated. to London this week to unveil his first Bond Pilati’s limited edition range of T-shirts, tank tops and tote bags Street store, woo new clients and charm his comes in several exclusive designs, and all items are made of or- Britain-based fans. ganic cotton. “Thank you all for the sunny day yesterday,” At Bottega Veneta, Tomas Maier created a tote bag that goes on he told guests during a dinner at China Tang on sale at its boutiques in Milan, Paris and New York on June 2, priced Monday night to celebrate the opening of the at 70 euros, and $90. Customers who spend more than 1,000 euros, and 2,500-square-foot store. “In my world, white $1,500, receive one as a gift with purchase. jeans are a year-round thing.” Michael Kors and Elle Macpherson To realize its “Eco The store is housed in the former Ballantyne Pump,” Sergio Rossi part- space on New Bond Street, near Burberry nered with the Fraunhofer and Hermès, and sells Kors’ full collection. Institute for Chemical Although Kors and his team would not disclose Technology, a research cen- full-year sales projections, industry sources es- ter in Pfinztal, Germany, to timate sales will be about 3.5 million pounds, or find ecologically sustain- $5.1 million at current exchange. able components. These Kors said the store, which had a soft opening include leather produced earlier this month, was already ahead of bud- with an eco-sensitive tan- get. This is his first U.K. store, and second in ner and a sole and heel Europe after Milan, and the designer — who is made with liquid wood, a London fan and faithful client of Savile Row which is biodegradable tailor Kilgour — said it’s a big moment for him. and high strength. The “We looked endlessly for a site here. London shoes retail for 395 euros, — and this part of town in particular — is a cross and $740. section of the world. It gets every age group, na- Jeweler Boucheron will tionality, and high, low and in-between shoppers,” not produce its Magnetic he said during a walk-through of the space. Quatre square made of The bright store, with its spacious feel and clean four shades of gold, with lines, boasts white marble floors, macassar wood, movable parts like a chrome and Plexiglas fittings. Kors has hung crys- Rubik’s cube. Rather, the tal chandeliers from the ceilings and dotted the one-of-a-kind object will walls with Ron Galella’s black-and-white shots of be displayed in its Place Jackie Onassis, Goldie Hawn and Jack Nicholson. Vendôme boutique and The shop floor also boasts some vintage later auctioned to benefit pieces, including a Fifties Milo Baughman sofa No Dirty Gold, an organi- covered in camel-hair fabric and Art Deco mir- Jacquetta Kristin Scott zation whose aim is to end rors. “It’s my wink to Claridge’s,” he said, refer- Wheeler Thomas Sergio Rossi’s “Eco Pump” mining practices that harm ring to the Art Deco interiors of the legendary uses sustainable materials. the environment. Bids are London hotel within walking distance of the store. to start at 2,000 euros. Kors has tweaked his offer for the local clientele, stocking more evening clothes than in other Meanwhile, Stella units “because the English like to dress up” for weekend entertaining in the countryside, he said, McCartney, perhaps Gucci and also because he’s expecting a large Middle Eastern contingent to be shopping there. Group’s most eco-minded He also plans to offer an ample supply of cashmere. “The love of cashmere here is stronger designer, has planned a than any other city — including New York,” he said. Kors will be offering sizes from 0 to 14, which celebrity-studded party he said he wouldn’t do in New York or Los Angeles. in lieu of a product. The On Monday afternoon, the designer entertained local luminaries and potential clients — in- VIP picnic screening cluding Trudie Styler and Astrid Muñoz — for lunch at Harry’s Bar, and later held a reception of “Home” at her West at the store followed by dinner at China Tang in the basement of the Dorchester Hotel. Guests Hollywood boutique is included Princess Beatrice, Kristin Scott Thomas, David Walliams, Elle Macpherson, Sir Philip to be hosted by Salma Green, Hilary and Galen Weston, Rena Sindi, Carmen Kass, Jacquetta Wheeler, Plum Sykes, Sol Hayek, Maggie Gyllenhaal, and Heather Kerzner, Eva Herzigova, Tim and Malin Jefferies and Yasmin Le Bon. Peter Sarsgaard, Laura Lawrence Stroll and Silas Chou, owners of the Kors company, hosted the high-energy evening, Dern, Ben Harper, Emily where guests table-hopped compulsively and grazed on dishes including steamed dumplings, Deschanel and Anjelica spare ribs, pork and duck. “Is soy sauce the new caviar?” mused Elizabeth Saltzman, commenting Huston. with a giggle on the momentary lack of the condiment. Alexander McQueen’s Balenciaga has yet to Meanwhile, David Tang played pied piper to the smoking set, pointing a gaggle of blondes scarf depicts the earth give details about its in- toward the fumoir. Stroll was as proud as a new father: “Michael, you have reached the ultimate with a skull motif. tentions. — you have a store on Bond Street,” he proclaimed during the predinner toast.

rate credit rating on Azria’s privately held company to “B-minus” from “SD” after the firm reshuffled its debt. Max Azria Not Optimistic for Near Term A rating in the “B” category indicates the company has the capacity to meet its financial commitments. “SD” Max Azria isn’t anticipating a big bounce in Staples Inc. president Michael Miles and GNC Corp. ceo indicates a selective default. The outlook on the rating the near term. Joe Fortunato. “We have to be realistic; we cannot man- is negative. The chairman and founder of BCBG Max Azria Group age business by looking at everything like it will come BCBG recently borrowed money to repurchase debt Inc., who sat on a panel at the Milken Institute Global right back.” at less than face value. S&P views this as “tantamount to Conference in Beverly Hills on Monday, said he sees lit- Azria’s take was in line with most of his fellow panel- default” but the move improved the firm’s credit profile. tle reason for optimism in retail over the next year and is ists, with the exception of Simon, who had a more posi- “They were able to purchase more debt than they took prepared for his business to be down 10 to 20 percent. tive outlook on the resilience of his mall properties. on to purchase it, so they are, in essence, less leveraged,” “We have to produce with much lower costs, have Despite the challenges, Azria said his company is po- said Jackie Oberoi, debt analyst at the rating agency. to save on everything, like advertising, without doing sitioned to cope with the economic downturn. “People BCBG has estimated debt of $516 million, a reduction less,” said Azria, who shared the stage with Simon will spend less, we’ll get through the next one to two of about $21 million from two debt buybacks, according Property Group Inc. chief executive officer David years and that’s it,” he said. to S&P. Simon, Goldman Sachs retail analyst Adrianne Shapira, On Tuesday, Standard & Poor’s boosted its corpo- — Anne Riley-Katz and Evan Clark 8 WWD, WEDNESDAY, APRIL 29, 2009 WWD.COM Beer Exits Hugo Boss USA By Brenner Thomas and Melissa Drier Men’s Wearhouse, Jos. A. Bank After seven months as president of Hugo Boss’ American busi- ness, Joachim Beer is out. Garner Attention From Wall Street The executive, who moved from company headquarters in Germany to replace Tony Lucia last fall, will return to Metzingen, where he is said to be “focusing on By Jean E. Palmieri other activities within the Hugo Boss Group.” The change is effective immediately. Beer’s duties will be assumed by his boss, Mark Brashear, chairman and chief The aggressive promotions at The Men’s Wearhouse and Jos. A. Bank executive officer for Hugo Boss’ North and South American divisions. Clothiers have hit a sweet spot with Wall Street. Hugo Boss said Beer left in order to “allow the company to operate more ef- Last week, analyst Brian Tunick of J.P. Morgan raised estimates for both retailers, not- fectively and more efficiently in the Americas.” But according to market sources, ing their promotional cadence — particularly on tailored clothing — is giving them a leg a conflict with a staff member contributed to his departure. A company spokesper- up on the competition. Men’s Wearhouse recently moved to a buy-one-get-one-free model son declined comment. in response to the economic downturn. And Jos. A. Bank has been running buy-one-get- The former head of trade marketing for Hugo Boss AG, Beer came to head the two-free suit promotions. U.S. business last September as an emissary from headquarters, tasked with lead- Tunick wrote that although Men’s Wearhouse’s “merchandise margins will be pres- ing a division largely managed and staffed by homegrown talent. sured” by its move, the company has cut its SG&A costs to compensate. He raised In January, the German parent created a new office to manage the com- his 2009 earnings per share estimate to 75 cents from 58 cents. “This assumes pany’s North American operations — an office that had seniority over a 6 to 8 percent comp decline and EBIT margins at a record low level of 3.4 Beer. That position was filled by Brashear, a veteran of Façonnable. percent [of sales] — down 130 basis points year-over-year and a five-year This is the second major staffing change at Hugo Boss USA in as average of 9.2 percent.” many months. In March, the division’s longtime vice president of mar- He also raised his target price on the stock to $15 from $9. Men’s keting and public relations. Katja Douedari. exited the firm. Wearhouse shares closed Tuesday at $17.31. Meanwhile, the German parent company on Tuesday tapped Turning to Jos. A. Bank, Tunick raised his 2009 EPS estimate to $3.25 Andreas Stockert as chief operating officer, effective June 1. WwD from $3.06, which assumes He succeeds Hans Fluri, who left the post at the end of March to comps will rise 3 to 5 per- become chairman of Red & Black Lux Sarl, the parent company of the cent and EBIT margins Valentino Fashion Group and major shareholder of Hugo Boss. Men’s will be down 50 basis Last December, Boss said Klaus-Gerhard Bierbrauer, a former opera- points to 13.2 percent. The tions team member of the Gucci Group, would succeed Fluri. However, on Feb. target price for the stock 5, Boss said it had withdrawn the offer. is $39. Jos. A. Bank closed Stockert will be responsible for purchasing, production and logistics for the Tuesday at $40.95, up 89 German fashion house. He was most recently senior vice president for Kuhne cents or 2.2 percent. + Nagel Management AG, a Swiss international forwarding company where Tunick called the com- he oversaw logistics and supply chain management for fashion and consumer pany’s comparable-store goods clients. sales growth over the past 12 months “remarkable, especially the up 13 per- cent in Q4, given the weak- FIFA Makes Move Into Apparel ness we have seen in re- tail. Clearly, the company’s By Ellen Groves alwear, and Trophy, described as more promotional model has sophisticated, less branded apparel. been successful at driving PARIS — A new player has arrived on To capitalize on traffic to next year’s traffic into its stores.” the sports-meets-fashion field. Soccer’s World Cup in South Africa, for which Margaret Whitfield international governing body, the Global Brands is also creating official of Sterne, Agee & Leach Fédération Internationale de Football merchandise, the first European FIFA Inc., is even more bullish Association, has signed a deal to develop store, in partnership with travel retail- on Jos. A. Bank. “They’ve FIFA apparel with Global Brands Group, er Nuance Group, will open at Paris’ had exceptional perfor- with the goal of opening 100 FIFA fran- Orly Airport in September. Further mance,” she told WWD, chise stores within three years. stores are slated for London, Tokyo and pointing to the success of Touting its soccer-inspired fashion Los Angeles, plus Latin America, China the company’s suit pro- apparel for everyone from high street and India, in partnership with different motions. “They’ve always shoppers to die-hard fans, Global distributors in those countries. been a high-low retailer, Brands has created five lines under The FIFA collections, which go on and they’re promotional the FIFA name for men and women. sale in August, are also targeting de- by plan.” Tested in a boutique in Singapore’s partment stores such as John Lewis in She recently issued a Changi Airport, which opened last the U.K. research note that recom- year, the lines include: 1904, a col- Founded in 2003, Global Brands mended a buy on the stock lection of preppy looks inspired by also holds licenses for the Federation with a target price of $45 the year FIFA was founded; Editions, International de Basketball Amateur, after a meeting with man- featuring previous World Cup logos, the Professional Golf Association agement. Whitfield wrote starting with Brazil; Code, described Tour, Warner Bros. and lifestyle that although February and as urban streetwear; Essentials casu- brand Evisu. Jos. A. Bank posted a 13 percent comp-store sales gain in the March sales were below fourth quarter while Men’s Wearhouse is running buy-one-get-one- plan, the shift in the Easter free promotions. holiday should lead to “healthy sales trends” for Seven For All Mankind Does Eyewear the first quarter. She held fast to her EPS estimate of 55 cents a share, which is based on a comp rise of 4 percent versus a 6.4 percent increase in last year’s quarter, but said “esti- By Caroline Tell modern aesthetic.” mates could prove to be conservative as [the company] continues to build market share.” In addition to denim, other catego- Although Whitfield does not follow Men’s Wearhouse, she said Bank’s surging suit SEVEN FOR ALL MANKIND IS break- ries at Seven For All Mankind include business — sales rose 30 percent last year, with the high-end Signature model rising ing out of its jeans and into eyewear. a full line of sportswear, handbags and 38 percent — “suggests share gains came from both traditional department stores and The nine-year-old denim brand part- footwear. It is owned and operated by Men’s Wearhouse.” Although it no longer issues monthly sales reports, comp-store sales nered with Modo to develop and distrib- Greensboro, N.C.-based VF Corp. declined 9.7 percent at the flagship Men’s Wearhouse chain in the fourth quarter. ute a collection of men’s, women’s and “Seven For All Mankind represents a Whitfield also noted that Bank’s move to advertising on ESPN, cable news and fi- children’s sunglasses and ophthalmic brand with such a cult status, an incred- nancial networks has helped it gain new customers. lenses that is to hit high-end depart- ible success story in the fashion indus- “New customer acquisition can be measured by gains in its database, which grew to ment stores and Seven For All Mankind try,” said Alessandro Lanaro, chief ex- 4.4 million names last year, up from 3.8 million in fiscal year ’07,” she said. shops in October. ecutive officer at Modo. “Our companies Richard Jaffe of Stifel Nicolaus recently issued upbeat reports on the two retailers as Modo specializes in women’s and share a common passion for craftsman- well. Earlier this month, he said that despite “what was arguably the most challenging men’s eyewear and operates the eye- ship and individuality, which I believe fourth quarter for retailers in 70 years, Jos. A. Bank showed it had the means to succeed.” wear licenses for 3.1 Phillip Lim and will be essential to extending a unique He said over the past eight years, the company has created a margin structure that al- Derek Lam, as well as the company’s style statement into the eyewear sector.” lows it to continue to achieve “healthy gross margins” despite an “exceptionally aggressive house brands MODO and and eye-catching” promotional strategy. As an example, he said the company’s high-end M+. The company is based A pair of Seven For All Signature suit would have sold for $450 at that time, but today retails for $795. “This allows in New York and has one Mankind sunglasses. them to discount it at 70 percent off or give two suits free,” he said. store downtown. Jaffe expects Bank will continue to use this strategy to drive sales “judiciously “The Seven For All Mankind and effectively during high-volume periods in 2009,” such as Father’s Day and Labor brand lends itself so seamless- Day. He did, however, express some concern about the fourth quarter, which will ly to eyewear,” said Leilani mark the one-year anniversary of the company’s promotion. As a result, he is predict- Augustine, vice president of ing a “moderation in earnings growth in Q4” to a 6 percent increase and EPS growth marketing and licensing at of 6 percent in 2010. Seven For All Mankind. “We Jaffe issued an upgrade for Men’s Wearhouse on March 12, saying the company see tremendous opportunity appears to be gaining market share from department stores. “Macy’s, Dillard’s and in this category for the brand. Nordstrom are allowing their suit inventory to thin,” he wrote. “This essentially Modo is highly respected in the gifts market share to Men’s Wearhouse.” He said a similar situation occurred in the fashion community and shares Nineties during the dot-com boom, when department stores “overreacted” to the ca- our passion for creating high- sual trend and shied away from tailored clothing. So while the dress-up category de- quality products that have that clined, Men’s Wearhouse and Jos. A. Bank actually picked up share. WWD, WEDNESDAY, APRIL 29, 2009 9 WWD.COM Sälzer’s Dire Warning for Escada PPR Job Cuts Draw Strikers By Melissa Drier BERLIN — At its 25th annual shareholders’ meeting in Munich Tuesday, Escada chief executive Bruno Sälzer said insolvency is the “only alternative” to the financial restructuring plan the company revealed late last week. The embattled fashion house is proposing a capital increase to raise the 30 million euros, or $39 million, needed to stay liquid during the current fi scal year. Sälzer said the restructuring and recapitalization plan must be completed by July. It also includes the restructuring of a 200 million euro, or $260 million, bond due in 2012, and calls for creditors to take a cut in repayment as well as extending the bond’s term. Furthermore, Escada is in ne- gotiations with banks on exist- Bruno ing and future credit lines. Sälzer Escada’s plans to sell the Primera Group (encompass- ing Laurèl, Apriori, Biba and Cavita) are also well under way, though Sälzer would not give further details. DOMINIQUE MAITRE BY He told shareholders that PHOTO all groups — shareholders, Strikers outside PPR’s Avenue Hoche headquarters on Tuesday. creditors and Escada’s house bank HypoVereinsbank — By Ellen Groves was freed by police. must cooperate “or Escada In a tract handed out Tuesday, the seven trade will not survive.” While ob- PARIS — Dozens of PPR employees gathered at the union organizations that coordinated the action de- servers said it is likely the firm’s headquarters here Tuesday to protest against scribed the layoffs as a short-term, purely fi nancial plan will be agreed to, since 1,900 job cuts, while fellow workers went on strike. strategy. Maintaining PPR remains largely profi t- the majority of shares are In what was billed as the fi rst company-wide able, the unions called for next week’s sharehold- held by the Herz family and strike, unions said hundreds of employees in Fnac er dividend, expected to be 418 million euros, or Rustam Aksenenko, there were skeptical voices to be heard. book, music and record stores and Conforama fur- $549.7 million at current exchange, to be invested “Escada is critically ill. Any number of therapies have done niture outlets across France participated. At an instead in maintaining jobs. little or no good till now,” commented Verena Brendel from the Yves Saint Laurent factory in Angers, 60 percent In a statement Tuesday, PPR said its director DSW, the oldest and largest German association of private inves- of employees stopped work for an hour. Agence of human resources, Philippe Decressac, met with tors. With shares having fallen almost 90 percent in value over France Presse, meanwhile, reported that 130 union delegates from Fnac and Conforama for the last 52-week period, “shareholders are faced with ruin,” said Fnac employees and between 1 and 2 percent of nearly two hours during the protest. The company Christop Öfele of the investors group SdK. Conforama’s workforce went on strike. stated all redundancy negotiations would adhere However, an Escada spokesman noted, there wasn’t so much Citing the deteriorating economy, PPR in to the group’s socially responsible remit. resistance to be sensed as “the fact that people are grasping, for February made 800 redundancies at Conforama, PPR’s fi rst-quarter sales, published last week, the fi rst time, just how serious the situation is.” 400 at Fnac in addition to 672 cuts already an- declined 2.6 percent to 4.78 billion euros, or $6.25 Sälzer, who was called in to turn the company around last nounced at catalogue retailer La Redoute. Workers billion. Business was down 4.5 percent at Fnac, July, didn’t mince words. The company posted a 70 million euro, protesting the layoffs in March blocked PPR chair- 5.4 percent at Redcats group, which includes or $91 million, loss in fi scal 2007-08 and the negative trend man and chief executive offi cer François-Henri La Redoute, and 10 percent at furniture chain continued in the fi rst quarter ended Oct. 31. “The fully unac- Pinault in a taxi for a just under an hour before he Conforama. ceptable business results are not only the fault of the market environment, which for the fi rst time became clearly more dif- fi cult for upscale fashion at the end of 2008. But they are fi rst and foremost the result of Escada’s too long tolerated defi cits in A Colorful Exchange: Mizrahi Goes to Wall Street fashion statement, in the professional management of the fash- ion market and in the organizational structures.” By Marc Karimzadeh Noting the management changes would not affect results for at least a year, Sälzer said group sales would continue to de- NEW YORK — The New York Stock Exchange has crease within a high-single-digit to low-double-digit percentage had its share of grimness in recent months, but on range in the current fi scal year. Tuesday, it closed with a splash of color, courtesy of Isaac Mizrahi’s new collection for Liz Claiborne New York. Liz Claiborne Inc. chief executive officer Picketers Protest Hanesbrands William McComb and Liz Claiborne New York cre- By Karyn Monget ative director Isaac Mizrahi rang the clos- A DAY AFTER IT ANNOUNCED A ROUND OF LAYOFFS, ing bell, a daily cer- Hanesbrands Inc. held its annual meeting on Tuesday with 15 emony they followed shareholders present at the Jumeirah Essex House hotel in with the first-ever Manhattan and almost as many protesters outside. fashion show on the Hanesbrands did not allow the media to attend the 12-minute trading fl oor. session, but Matt Hall, vice president of external communica- “That’s pretty his- tions for Hanesbrands, told WWD that shareholders only asked toric, no?” Mizrahi three questions. said prior to the “We were asked if Hanesbrands was considering going to event, in the venue’s India and Brazil, but we already do business there — three boardroom, where he years in India, and we are long established in Brazil,” Hall said. and McComb were “We were also asked about swine fl u impact, but it’s clearly too presented with the early to say, and we’ve halted any company travel to Mexico. An gavels — “not to be investor asked if there are still textile opportunities in England, used as an accessory,” but that was part of Sara Lee, which was sold to Sun Capital. We Mizrahi said. license brands we own such as Wonderbra and Playtex to Sun After the closing Capital for Europe and South Africa.” bell rang, 10 models As shareholders were leaving the meeting, 14 protest- walked the labyrinth- William McComb and ers representing the AFL-CIO and United Students Against like floor, and more Isaac Mizrahi ringing the

Sweatshops were noisily picketing in front of the hotel, hold- than a few traders closing bell. Liz Claiborne New York CENTENO TALAYA ing painted Hanes T-shirts and signs that said “Union Busting” couldn’t conceal their staged the fi rst-ever fashion and “Poverty Wages.” The protest against Hanesbrands was school-boy excitement at the towering beauties. show on the trading fl oor. organized because of “threats and intimidation” against work- The designer said he could envision a fashion PHOTOS BY ers in Hanesbrands facilities in El Salvador, Honduras and the week show for his main line at the venue. “There Dominican Republic, said a spokeswoman for the Solidarity are a lot of men and pretty girls,” he said. “It’s ent “the new Liz Claiborne” as well as “a sign of Center at the AFL-CIO. like when you see a girl at Yankee Stadium. It will good things to come.” Asked what Hanesbrands’ policy is on compliance abuses, make her seem more girlish and accentuate the For his part, Mizrahi was aware of the moment’s Hall replied, “There are absolutely no human rights abuses. feminine.” signifi cance. “[LCI] is a public company, so I feel Hanes has one of the strongest reputations for conducting busi- The women on the trading fl oor — few and that awareness of the brand in this milieu is impor- ness around the world in an ethical manner. We have done busi- far between — could certainly use a pop of Isaac tant,” he said. “When I design clothing, I keep that ness in the Dominican Republic for 30 years, and we’ve had op- amid the sea of suits. Mizrahi wouldn’t mind. “I in mind. It’s a brand of clothes for real women.” erations in Central America for more than 20 years.” would like women to wear my clothes anywhere,” He was impressed by the trading fl oor. “The Hall added, “We pay well above minimum wage in those he said. most exciting thing for me was that I did not un- countries and offer good benefi ts. We have a policy of allowing Millions of people see the closing bell around derstand anything,” he joked. “I do not understand employees to choose for themselves if they want to join a union. the world. “It was a lot of fun,” said McComb, add- anything about the stock market. But I will admit It’s part of our code of conduct.” ing the experience offered a great platform to pres- that I own some Liz Claiborne stock.” 10 WWD, WEDNESDAY, APRIL 29, 2009 WWD.COM Marketing Shopper Malaise: Going Through the Motions By Cecily Hall and 36.9 percent of men said clothing for themselves was at the top of their priority list. Clothing for children A shopper looks over price tags. The thrill is gone for many shoppers, but ranked second, with 23.6 percent saying they couldn’t there might be signs of retail life on the horizon. give it up, followed by electronics, 13.8 percent; house- The recession has reduced the consumer experience wares, 10.3 percent, and toys, 4.3 percent. Appliances, to drudgery for many Americans. As part of its monthly home decor items and furniture rounded out the bottom American Pulse survey, BIGresearch, a consumer and of the list. retail research firm based in Columbus, Ohio, “People are still buying great fashion items,” said found that 57.2 percent of more than 4,000 peo- Christine Chen, Needham & Co. retail analyst. “For ple polled this month said they have a “just get women’s apparel, specifically, the customer is being it done” attitude (39.6 percent) about shopping choosier. They’re aware of price, but if you have to or they “dread it entirely” (17.6 percent). have something, it still gets bought. Only 14 percent responded that they “really “Basics are sitting on shelves because they don’t enjoy shopping and think of it as ‘retail stand out,” she said. “Retailers need to have stand- therapy,’” and 28.8 percent said they outs, and more companies are coming around to n “look forward to it a little bit.” this. The consumer already has a closet full of e icks

Rising unemployment, tight credit, basics. She wants something different that makes r E

home foreclosures and bankruptcies her stand out — they still crave that ‘feel-good’ le propelled the change in consumer mood experience. You don’t feel good if you buy a pair y

across the income spectrum. of khakis.” K BY “Everyone is on a budget right now,” Parents are still buying clothing for chil- Ronson

said Pam Goodfellow, senior analyst for dren. For example, Target Corp. said for March ;

BIGresearch. “The mentality is that no comparable-store sales in apparel were led by bis r one wants to spend beyond their means, better-than-average performances in the new- o or beyond whatever is necessary.” born-infant-toddler categories, along with inti- After completing a shopping trip, 23 mate-hosiery-performance apparel. e100/C percent of those surveyed admitted to “Shopping for kids hasn’t slowed because mag feeling “relieved,” 43.5 percent were kids will always need a new pair of shoes,” “somewhat satisfied” and 8.2 percent Chen said. felt “rejuvenated.” But 5.3 percent felt Other upticks in apparel spending include “guilty” and 20 percent said they were premium denim. “If you amortize the cost of “downright depressed.” jeans over the number of different times you “That’s one-in-five shoppers who are wear it — people are wearing denim to fancy completely depressed after a shopping events now, so the purchase becomes justified,” trip,” Goodfellow said. “There might she said. “You can wear it daytime and night. I WOMAN SHOPPING PHOTO BY be some guilt attributed to this, partly This is why True Religion is doing well. They’re Chen agreed that dresses continue to be popular. because of the ongoing fears that people providing fashion denim that is different from last “Every retailer has said dresses continue to sell well. have of losing their jobs. If you don’t have year. It’s an incentive.” Again, dresses have that ‘multiple-use’ component, like money to spend, it’s hard to enjoy spending Last week, top executives from J.C. Penney Co. jeans. Buy a fabulous dress, pair it with a sweater dur- when you still have to do it.” Inc. said they were sensing an improvement in con- ing the day, take the sweater off at night — you’re get- The poll asked respondents to select from sumer trends. And Tuesday, the New York-based ting multiple use.” among eight product categories — clothing Conference Board said its Consumer Confidence In terms of the consumer mind-set, “It seems as for yourself, clothing for your children, elec- Index rose to 39.2 in April from 26.5 in March as the though there has been a sentiment change,” Chen said. tronics, housewares, furniture, appliances, short-term outlook got brighter. “I do think that, recently, there’s more certainty about home decor and toys — one category they Myron E. “Mike” Ullman 3rd, Penney’s chair- what’s going to happen. The new administration has could not give up buying. man and chief executive officer, said last week plans in place and it’s not this big unknown, and the A total of 38.5 percent said the tough- A dress from J.C. the retailer has “one of the best women’s apparel market is doing better. By no means are people whole est purchase to do without was clothes Penney’s I [Heart] trends in the industry,” with dresses a top-perform- again, but…a lot of people have adjusted to the new re- for themselves — 40 percent of women Ronson collection. ing category. ality and what you can work with.”

WWD: What prompted you to take on the “Kenny M.B.: It’s not trying to be clever and double entendre. They’re Scharf” book-design project? beautiful paintings. They’re not controversial. Marc Balet: Kenny and I were in Brazil, with his wife; they have 120 acres on the ocean in Bahia. I know WWD: Would you say there’s a sense of playfulness in them? Kenny from the Warhol days, when he used to hang M.B.: You can’t do a picture of a doughnut [like “Chocolate around with Andy and come to The Factory. He said, Covered Donut at Dawn” (2007)] or a hot dog without having a “I’m going to do a book, I’d like you to do my book.” sense of playfulness.

WWD: What was the sensibility that you brought to WWD: With all the changes going on in our society, how is your the project? own marketing and design work changing? M.B.: I’m from the big-picture school. I took little M.B.: I don’t think about it. There’s less money around to sections of the pictures and blew them up, and invest, but I think there still is money around. There certainly then you turn the page and see the whole painting. is time to invest. You can’t run to a corner and throw a blanket I was adamant about the cover that was chosen over you, even if it’s a cashmere blanket. because it was meant to be advertising. WWD: What’s influencing you these days? WWD: What, if any, aesthetic sensibilities do you M.B.: All the different kinds of media you can’t run away from and Q share with Kenny Scharf? all the different platforms. There are little individual things that get M.B.: I think it’s the Pop. We used to call Andy “pop,” through, like the woman singing on that English program [Susan first of all, so that was a funny thing. Pop Art when Boyle on “Britain’s Got Talent,” with 46 million YouTube views]. I was growing up as a kid in Connecticut and then going to RISD Marc Balet [Rhode Island School of Design] — that was a revolution for us. WWD: How does the past inform what you’ve been working on lately? Do you draw from it? Marc Balet,A a marketing executive with roots as creative WWD: Kenny Scharf’s reach into the fashion world has been broad. M.B.: You can’t not, having worked at that time in New York when director of Andy Warhol’s Interview magazine in the Seventies He’s worked for Todd Oldham, Elie Tahari, Ralph Pucci, Movado… things were happening so fast — the mid-Seventies. Having and Eighties, knows how to make do with less. M.B.: …He did Gap special edition T-shirts [for the 2008 worked for Armani and Saint Laurent and Lagerfeld and Barneys A Barneys New York print campaign, shot by Steven Meisel, Whitney Biennial]. and Donna and Louis [Dell’Olio], you became aware of the came to life years ago as Balet grabbed some objects from his home shortcuts to make it good. Having worked with Andy, you knew — a jump rope, a megaphone — for props, just before the shoot. WWD: Do you have any particular view of this artist and friend how do to something on a dime and make it look like a million. While designing “Kenny Scharf” (Rizzoli, $85), the artist’s working in the fashion arena? just-published 272-page retrospective of Pop Art and personal M.B.: People love to wear that stuff. They can’t afford a painting or a WWD: I was surprised to see your “Fashion” interview of Fran photographs, Balet prevailed in a scrap over the choice of print, but they can afford a T-shirt for $19.95. It tells you that you’re Leibowitz, for Andy Warhol’s TV (1979-1980), at the Wexner the painting “Starring...a Star [1985]” — a smiling face — in the club, that “I appreciate this aesthetic, I’m a cool person.” Center’s Andy Warhol exhibit, last fall. portrayed on the cover. His effort to create a limited edition M.B.: We’re still friends. I had dinner with her Monday night [April with a 3-D nose, fell short, though. WWD: You mentioned the idea of borrowing images and using them 13]. She got me into Interview. I met her in Rome, and she said, “Publishing companies rarely put money behind their commercially. Where do you think we are in the world, regarding that? “Call me when you come to New York.” That was 34 years ago. books,” Balet said. “Now there’s less money than ever.” M.B.: It’s such a gray line now. You just can’t stop everyone A 3-D cover might have telegraphed Scharf’s art as anymore, whether you’re a company or a country. You can go WWD: She mentioned she was then a customer of Brooks something happy, a “tease” for shoppers, said Balet, president now and print your own magazine or print your own book. Brothers. She talked about the way certain things she wore and creative director of Mixed Business. were made and why she liked to wear certain things. With the book about Scharf completed, next up for Balet WWD: Do you agree with critics’ observations that Scharf’s art M.B.: Her tastes have not changed. Neither of our tastes is creating the Doncaster women’s apparel catalogue for fall — like “Hotdigitystar” (2008) on the book’s back cover — is a have changed. Martin Scorsese is doing a film on her — her 2009. — Valerie Seckler comment on consumerism as nostalgic, subversive or classic? espousing on things. She’s a great dinner guest. SECTION II

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For more information on advertising, contact Christine Guilfoyle, publisher, at 212-630-4737, or your WWD sales representative. 12 WWD, WEDNESDAY, APRIL 29, 2009 WWD.COM Penney’s Marks Seventh Year of Bisou Bisou Tanner Krolle Sets J.C. Penney had reason to celebrate on Monday night, as it’s been seven years since Bisou Bisou launched exclusively at the retailer. Plans to Relaunch “It’s all about getting J.C. Penney to push the envelope. It’s not about taking Bisou Bisou down,” said Michele Bohbot, the brand’s founder and creative di- By Samantha Conti rector, who said her deal with Penney’s allows her to do just about anything she wants with the collection on a creative level. “I’m very much inspired by a chic, LONDON — Tanner Krolle, the high-end British powerful, confident woman, and I’m able to bring a lot of newness to J.C. Penney accessories brand whose clients include the with this collection.” royal families of Britain, Brunei and Norway, To celebrate Bohbot’s seventh year with the store, the company hosted a dinner is making a quiet comeback. at New York’s Museum of Modern Art’s restaurant, The Modern. The scene was The business, which in 2007 was struggling fitting for the event, as Bohbot used the opportunity to show off a selection of her under a load of debt, has restructured its oper- own artwork — paintings that inspired her summer collection of maxidresses. ations. It now has a clutch of individual private “Painting is a passion of mine, and I think a lot of people didn’t know that investors on board who are eager to relaunch about me,” she said. the label on a small scale, according to John In addition to the paintings and dresses for summer, the event gave O’Sullivan, head of sales and marketing. a peek into the fall Bisou Bisou line, which included metallic gold Even during its most troubled times, dresses, satin beaded tops, printed chiffon kimono tops, fake fur O’Sullivan said, the brand continued to sell vests and fake leather jackets with slim black pants. bespoke leather accessories to private clients Seven years ago, the launch of Bisou Bisou at Penney’s opened through a small showroom here. There are now the retailer up to the contemporary apparel sector for the first time. plans to return to the wholesale business and to Since then, the store has launched a slew of exclusive lines in vari- launch an e-commerce Web site within the year. ous departments and has added more contemporary brands such as “The brand tried to grasp the mass market, Allen B. and I [Heart] Ronson. and that caused us some problems. We were It’s brands like these that have enabled Penney’s to take market never going to have a long-term appeal to the share from key competitors, and the company is continuing with ‘It’-bag customer. We are about classic styles,” the launch of exclusive brands. Last week at the retailer’s meeting said O’Sullivan during an exclusive interview with analysts and investors in New York, top officials from Penney’s at Tanner Krolle’s showroom in Berkeley said they are sensing more positive trends in consumer shopping habits. A couple of fall looks from Bisou Square. “The company has always been opera- christian grattan “We are not seeing a wild or crazy shift, but there’s been a slight uptick,” said Bisou. Inset: Michele Bohbot tional, and our inner tier of customers has re- Myron E. “Mike” Ullman 3rd, Penney’s chairman and chief executive officer. with one of her paintings and a mained with us.” summer dress for J.C. Penney.

— Julee Kaplan photos by O’Sullivan said the strategy going forward is to keep the business as simple as possible. He hopes to generate about 60 percent of revenues with luggage and travel accessories and gifts, and the remaining 40 percent with handbags. Prada Eyewear Concept Shop Opens in Sunglass Hut He plans to continue selling the brand’s By Caroline Tell first store in Milan’s Galleria neighborhood. Historical el- most popular models — classic styles such as ements seen on the eyewear include triangles that read the Eva, Sam Browne and Cutter bags — and NEW YORK — Prada Eyewear has found a new home here. “Milan 1913,” signifying the firm’s beginning. to introduce just three new styles each year. The Sunglass Hut in Rockefeller Center has been re- “It’s the little details that directly relate to the founding The focus, he said, is on first-rate materials made temporarily as the first Prada Eyewear Concept of our brand,” said Matteo Sessa Vitali, licensing director and workmanship rather than on keeping up Store. The shop, which opened Tuesday and runs through at Prada. “We wanted to make it feel like a store within a with seasonal trends. The company uses only May 5, features special Prada displays, windows, floor- store, like people are shopping at Prada.” vegetable tans and organic leathers, and manu- ing and signage that came directly from Since purchasing Sunglass Hut in 2001, Luxottica has factures the collection in France and Italy. the firm’s Milan headquarters. The been evolving the store concept from kiosk-type out- “Going forward, we’re also going to be able Concept Store will showcase Prada lets found in airports to specialty, design-driv- to experiment with our designs and materials. exclusively, including styles de- en boutiques. All 1,905 Our factories in Italy are keen to experiment, signed specifically for the store. Sunglass Huts around the and are also willing — in these times — to de- Sunglass Hut and Prada’s eye- world are incorporating a liver smaller orders, which is great for a com- wear license are both owned and new logo and store design pany like ours,” he said. operated by Luxottica Group, the concept. O’Sullivan plans to involve the customer $7.65 billion licensing firm also based “The long-term strategy for more in the design process. “I want them to in Milan. Sunglass Hut is to be a curator of cool help curate the collections and be involved in “We created this collaboration to give and an authority of hip eyewear,” Krause product development. I have some clients who our customers a special shopping experi- said. “This is one more step in our evolution are doing that already,” he said. ence and to have fun,” said Jack Krause, gen- as a brand. With Prada, we get to teach con- The entry-level price for the collection is eral manager at Sunglass Hut. “The goal is to An exclusive style for the sumers about eyewear through the context of 395 pounds, or $580 at current exchange, for share what the Prada heritage means while Prada Eyewear Concept Store. Prada, and it’s important for both brands to a leather folio. A small leather suitcase with allowing Sunglass Hut to be a curator for the create these experiences right now.” wheels costs 1,400 pounds, or $2,058, while brand and help show who they are and where they’re from. Krause said the two firms will continue to collaborate, a hand-stitched leather briefcase costs 2,500 In today’s market, you have to create special shopping ex- but that New York is the only location operating the special pounds, or $3,675. periences for consumers.” concept store. He declined comment on whether Sunglass O’Sullivan expects to launch the Tanner The Prada Eyewear Concept Store showcases the same Hut will continue to play host to additional brands carried Krolle e-commerce site at the beginning of black tiling, wall mountings and details found in Prada’s at the store. May, and return to the wholesale business by the end of the year. Tanner Krolle already has a small wholesale business at Harrods. In the U.S., O’Sullivan plans to target stores such as Bergdorf Goodman, Louis Boston, Adidas, Samsonite Pair Up for Y-3 Venture Maxfield and Neiman Marcus. He said he’d By Sophia Chabbott also like to replicate Tanner Krolle’s private A Y-3 runway look. selling showroom in New York, the Middle East Samsonite is about to get sporty. and Hong Kong. Activewear brand Adidas and Samsonite have formed a partnership in “At the moment, it’s good not to have the which the maker of travel bags will manufacture and distribute Y-3 acces- overheads of retail stores,” he said, adding the sories. brand may go into retail in the medium term. Y-3 is a collaboration between Adidas and Japanese ready-to wear design- The brand, which has been compared er Yohji Yamamoto. The apparel is a combination of fashion and sportswear, with Hermès due to its fine leatherwork and and the new accessories lines will reflect the same mood. Y-3 has had some bespoke products, was founded in 1856 by accessories in the past, but this is the first accessories license. The Y-3 travel Franz Frederick Krolle. Its clients have in- accessories and leather goods produced by Samsonite will start with goods re- cluded English royals, Indian maharajas and tailing for next spring. The brand has had eyewear for the past four seasons. American presidents. Princess Diana took “Y-3 has been born from the fusion of the seeming opposites of sport and bespoke Tanner Krolle luggage on her honey- style,” said Yamamoto, creative director of Y-3. “Together with Adidas, we moon, while Princes William and Harry went worked with forming something that didn’t exist and that would completely off to boarding school with Tanner Krolle lug- project into the future.” gage in tow. Beppi Fremder, chief marketing officer of Samsonite, said: “Both Samsonite The brand was owned by Chanel until 2002, and Adidas have a shared commitment to excellence in product innovation when it was purchased by the London-based and customer satisfaction,” and this initiative will “support the growth of the fashion executive and investor Guy Salter and Adidas and Y-3 bags and travel business. This partnership will allow us to the private equity group Rupert Hambro & optimize our synergies, combining the strength of the Adidas Y-3 brand with Partners. Samsonite’s know-how and expertise in the bags and travel segment.” Albion Investors, the U.S.-based private equity Samsonite has dabbled in the luxury and fashion sector the past several firm, took over ownership in 2005. When Tanner years, with collaborations with designers such as Alexander McQueen, Marc Krolle fell on hard times in 2007, Albion tried to Newson and Viktor & Rolf. Samsonite also has a signature Black Label luxu- sell it — but could not find a buyer at the time. ry luggage line. Samsonite holds a majority stake in Lambertson Truex, the The new investors are private individuals who 10-year-old American luxury accessories brand that was put up for sale in have chosen to remain anonymous, and Albion December and filed for Chapter 11 bankruptcy last month. remains a minority investor in the brand. WWD, WEDNESDAY, APRIL 29, 2009 13 WWD.COM WWD West Economy Stymies Downtown L.A. Retail

By Rachel Brown The L.A. Live entertainment complex. LOS ANGELES — The recession has crashed the downtown party conceived for this car-obsessed city, short-circuit- ing a major push for retail. A few years ago, visions of a bustling, around-the- clock downtown danced in the heads of developers and government offi cials. Now, despite pockets of progress, fi nancial struggles have created obstacles to retail and residential projects crucial to making downtown a walk- able, mixed-use destination and home instead of a stop- over for commuters. The $3 billion Grand Avenue Project developed by Related Cos. of New York has been touted as a corner- stone of the new downtown. The company’s Web site de- scribes it as the heralding of “a new era in Los Angeles.” The new era, however, won’t arrive until at least three years behind schedule, in 2012. That’s when the fi rst phase, including a hotel, 500 housing units and 285,000 square feet of retail space, is forecast to be fi nished. There are other trouble spots. Blaming tight credit, New York-based developer Moinian Group has put on hold an estimated $1 billion complex across from the Staples Center featuring luxu- ry retail, restaurants and a pair of towers rising 33 fl oors and 45 fl oors. Other postponed projects include Houk Development Co.’s $1.3 billion residential and hotel de- KEENAN velopment and IDS Real Estate Group’s more than $1 billion residential-retail venture, Metropolis. STEFANIE The biggest downtown landlord, Meruelo Maddux Properties Inc., owner of 28 rental and 19 development projects in the area, fi led for Chapter 11 in March, be- PHOTOS BY cause of the challenging economic climate. A bank- ruptcy fi ling also sidelined the $165 million Chinatown adding they rely on 2000 census fi gures estimating The Frank Gehry-designed Walt Disney Concert Hall Blossom Plaza apartment and retail complex. downtown’s population at 6,000. features a 2,265-seat auditorium and two outdoor am- Retailing suffered another setback this year when In addition, potential locations often are oddly shaped, phitheaters and has given downtown renewed cultural Macy’s 123,000-square-foot store closed at the 7 + not big enough, lack parking or loading space. As retail- and architectural gravitas since opening in 2003. Fig shopping center, which is owned by Brookfi eld ers cut back, those hurdles become tougher to jump over. “You have the danger of people moving downtown, Properties Corp. “These guys are looking at location opportunities having bought into some hype, and then mov- Citing independent retailers seeking “to go into where they can just plop their footprint down ing away,” said Eric Richardson, editor of the downtown and take their shot,” City Councilwoman Jan with no fuss,” Tarczynski said. “Doing an urban For more local Web site, Blogdowntown. “We are not Perry, who represents the area, said: “The renaissance store is a very diffi cult proposition.” images, seeing that. We are seeing people sticking will still move forward, but we may have to change our But he predicted a downtown Target “will downtown.” defi nition. It may have to take place on a block-by-block be here soon enough,” although a spokes- see In the five years since the Historic basis with people coming in with new ideas [and] small- woman for the chain said the retailer has no WWD.com. Downtown L.A. Retail Project organization was er-scale projects.” immediate plans. created by the city, project manager Audrey The desire for retail among downtown residents is Mayor Antonio Villaraigosa has put his Madrigal said it has aided 50 downtown retail strong. A study released this month by the Downtown weight behind downtown’s expansion even businesses get started. The majority have been Center Business Improvement District found that a ma- as the city struggles with rising budget defi cits. restaurants and cocktail lounges averaging 1,000 to jority of residents said they want a chain such as Target, Within downtown, Villaraigosa has been active in secur- 2,000 square feet. a specialty store like Gap or Banana Republic and a ing convention center hotels and promoting the Grand Marty Shelton, vice president of urban development multiline store such as Macy’s or Nordstrom. But in a Avenue Project, which is receiving $100 million in gov- at NAI Capital, said the downtown retail vacancy rate period of store closings and retrenchment, the likeli- ernment redevelopment funds. at the end of last year was 5 percent, but has probably hood of expansion has dimmed. Bert Dezzutti, Southern California senior vice presi- inched up since then. “What it is going to take is for us in the real estate dent of Brookfi eld, said an announcement would likely be The single biggest retail victory for downtown of community to go to the retail tenants and ask them to made within six months about retailers entering the space. late has been Ralph’s Fresh Fare supermarket, which take the plunge and risk with us” for the long term, said “We have folks that would take 30,000- to 40,000-square- opened in 2007 after years of lobbying. Tarczynski of CB Hal Bastian, the BID’S senior vice president and direc- foot chunks,” he said, adding that Brookfi eld is spending Richard Ellis, who was infl uential in the Ralph’s deal, tor of economic development. $3 million on improvements at the 7 + Fig center. said the location was recording gross sales “upward of The BID study said the 65-block downtown area bor- The chairman of Beverly Hills development company $750,000” weekly compared with an expected $300,000. dered by the 101 Freeway to the north, the Los Angeles Astani Enterprises Inc., Sonny Astani, is familiar with The Historic Downtown neighborhood offers a model River to the east, the 10 Freeway to the south and the the challenges of operating in the soft market. The fi rst for retail not dependent on national brands. The area is 110 Freeway to the west, is drawing a larger population phase of his Concerto project, consists of two residen- bordered roughly by Hill and Main streets on the west of upwardly mobile residents. tial towers and a loft building that will and east, and 3rd and 9th streets on the north and south. The survey said 39,537 people occu- Broadway begin to take in residents in June. But A critical element in its transformation from a district pied 26,011 residential units downtown is a renewal tenants will pay far less than Astani where crime and drugs fl ourished is an adaptive reuse last year, compared with 28,878 people in target. originally anticipated. A unit priced at ordinance adopted in 1999, which paved the way for the 18,999 units two years before. Residents $400,000 was expected to fetch $600,000, conversion of unused offi ces to residential units. had a median household income of and a $575,000 unit had been pegged at As residents began to trickle in upon the completion $96,200, and an average age of 37. $750,000 to $800,000, he said. of stylish lofts, low rents compelled entrepreneurs to take Merchants, however, have not been Ultimately, Astani believes down- notice. Gallery owners were among the earliest. One of persuaded there is a critical mass of town will pay dividends. “The bones them, Bert Green, opened his namesake space in 2004 full-time downtown residents. “The are all there,” he said. “We are getting and paid 30 cents a square foot. The galleries gave rise national retailers do not accept those to the infl ection point.” to an Artwalk that has become a magnet for thousands on numbers; they don’t feel it is an unbi- About 14 percent of downtown resi- the second Thursday of every month. “A lot of the boosters ased survey,” said CB Richard Ellis dential apartments were vacant in the thought it would be a two-year to fi ve-year process, but we senior vice president Mark Tarczynski, fourth quarter of last year, compared have 10 years before we get there,” Green said, referring with 3.4 percent the year before, said to fi rmly establishing the downtown neighborhood. Delores Conway, director of the Casden Apparel stores are popping up in the area. San Real Estate Economics Forecast at the Francisco-based Upper Playground, which sells T-shirts USC Lusk Center for Real Estate. She decorated by artists, opened in Historic Downtown last attributed the rise to new residential May because it fi t the nine-store chain’s urban attitude. offerings at the end of last year and This month, Los Angeles-based brands Ed Hardy and more leasing of condos as apartments. Skin.Graft launched stores in Historic Downtown. Skin. To be sure, downtown teems with ac- Graft designer Jonny Cota said the area’s “combination tivity that was almost inconceivable a of art and grunginess” appealed to him. “It is still a little decade ago, when the Staples Center, home of the NBA’s scary, but you can do respectable things. “We made the Lakers and Clippers and the NHL’s Kings, was unveiled. move feeling confi dent that we would be able to bring The fi rst phase of the neighboring $3 billion L.A. Live, an our own customers here.” entertainment venue, which includes theaters and dining Frances Giles, store manager Ed Hardy’s downtown was completed in 2007 with the Nokia Theatre. Phase- outlet, acknowledged the brand doesn’t quite know the two additions that have opened include ESPN’s West demographic for the store yet and will test different Coast outpost, the Grammy Museum, a bowling alley and deals and events to pull in customers. “We are in a neigh- The Skin.Graft boutique. restaurants. A movie theater, a Ritz-Carlton hotel and borhood that is defi nitely on the cusp,” she said. “We are residences, as well as a JW Marriott are yet to come. willing to put in the time and effort to stick it out.” 14 WWD, wednesday, april 29, 2009 WWD.COM Financial For full daily stock changes, see WWD.com.

Swine Flu Fears Hurt Luxe Stocks 10 Best Performers By Nina Jones ness and extended range-bound trading.” Burberry’s shares closed down 3.3 DAILY COMPANIES P/E Volume Amt LONDON — Swine flu could be the next percent at 381 pence, or $5.56, Tuesday, blow to Europe’s luxury goods stocks, while shares in Richemont fell 4.92 High Low Last %Change which have already taken a beating in percent Tuesday to 19.89 Swiss francs, the economic downturn. or $17.26 at current exchange. LVMH Shares in Burberry Group, Compagnie shares fell 2.9 percent to close at 55.51 0.38 0.36 Sport-Haley (SPOR) - 15000 0.38 +35.71 Financière Richemont SA, Bulgari SpA, euros, or $73, in trading on the Paris LVMH Moët Hennessy Louis Vuitton Bourse, while PPR declined 4.8 percent 0.53 0.40 Joe’s Jeans (JOEZ) 3.9 138746 0.48 +22.47 and PPR all fell on European stock ex- to 58.49 euros, or $76.92. changes Tuesday, the same day it was In Milan, the S&P/Mib index closed confirmed the virus had spread further down 1.5 percent to 18,541. Shares in 4.43 3.68 Caché (CACH) - 164817 4.30 +14.67 afield from Mexico and the U.S. to coun- Bulgari dropped 3.9 percent to 3.87 tries including Canada, France, New euros, or $5.09, while Luxottica Group 8.12 7.04 Jones Apparel (JNY) - 3398949 8.06 +13.84 Zealand, Israel and Britain. SpA slipped 2.3 percent to 13.71 euros, On Wall Street, the threat of a pan- or $18.03, and Tod’s SpA fell 2.7 per- 2.43 1.94 Talbots (TLB) - 904144 2.27 +12.94 demic has had a mixed impact, with cent to 39.17 euros, or $51.51. Mariella some shares rising and others falling, Burani Fashion Group SpA was the 25.50 22.79 Under Armour (UA) 28.2 5094347 24.50 +12.90 depending on the sector. Retail shares day’s biggest fashion loser, sliding 7.4 improved modestly despite five more percent to 5.10 euros, or $6.70. confirmed cases of the disease in New Troubled eyewear firm Safilo Group 2.51 1.90 Retail Ventures (RVI) 1.5 262956 2.29 +10.10 York City, for a total of 45. SpA bucked the downward trend, gain- London-based Sanford Bernstein an- ing 0.6 percent to 0.44 euros, or 58 cents, a 2.20 1.91 Delia’s (DLIA) 199.0 156061 2.15 +8.05 alyst Luca Solca issued a research note day after chief executive officer Roberto Tuesday suggesting swine flu could affect Vedovotto said talks between majority 10.40 9.34 DSW (DSW) 15.4 477968 10.10 +7.68 luxury goods sales, particularly if inter- shareholder Only 3T SpA and four pri- national travel is restricted. The note ex- vate equity funds were ongoing and a deal 3.93 3.57 Stein Mart (SMRT) - 147339 3.88 +7.48 plored the possible effects of swine flu on could be reached before the summer. the sector based on the assumption the In Japan, the Nikkei 225 fell 2.7 per- virus “will be similar in magnitude and cent to 8,493.77 on growing doubts about seriousness to the 2003 SARS outbreak.” earnings prospects and a strengthening Solca added he expects the World yen. Department store Isetan Co. Ltd. fell 10 Worst Performers Health Organization to recommend trav- 1.5 percent to 839 yen, or $8.68, and rival el restrictions following the outbreak. Takashimaya Co. Ltd. slipped 0.8 percent DAILY COMPANIES P/E Volume Amt “Luxury goods sales are impacted by to 629 yen, or $6.50, while Uniqlo-owner changes in international travel,” Solca Fast Retailing Co. Ltd. dipped 1.6 per- High Low Last %Change wrote. “Our ballpark estimate is that cent to 9,950 yen, or $102.9. [around] 20 percent of luxury products Across the Pacific, the S&P Retail are purchased by people traveling for Index rose 0.6 percent, or 2.08 points, 0.43 0.30 Phoenix Footwear (PXG) - 23600 0.32 -23.83 some reason. [Recommended travel re- to 334.74, as the Dow Jones Industrial strictions] would in turn cascade into Average slid 0.1 percent, or 8.05 points, corporate travel restrictions and inde- to 8,016.95. Among the top retail gainers 2.75 2.20 Hampshire (HAMP) - 11300 2.30 -17.86 pendent travel curbs, with the obvious for the day were Caché Inc., up 14.7 per- negative impact…on luxury goods sales.” cent to $4.30, and The Talbots Inc., ahead 0.37 0.26 Eddie Bauer (EBHI) - 1541313 0.32 -15.31 The U.K.’s Foreign Office on Tuesday 12.9 percent to $2.27. Although swine advised against all nonessential travel flu wasn’t the dominant consideration 1.47 1.20 Casual Male (CMRG) - 226178 1.21 -11.68 to Mexico, as did the U.S. Centers for on Wall Street, in Sacramento, Calif., Disease Control and Prevention. California Gov. Arnold Schwarzenegger 1.73 1.56 Quiksilver (ZQK) - 794645 1.58 -7.60 “How the virus affects luxury goods de- declared a state of emergency and asked pends on how serious [the virus epidemic] Washington for an additional $1.5 billion 1.10 1.00 LJ Intl. (JADE) 13.6 111848 1.01 -7.34 is,” said Solca. “Assuming swine flu is like to fight the virus. SARS — i.e. far from devastating but seri- — With contributions from Andrew ous enough — the more probable risk for Roberts, Milan; Miles Socha, Paris, 33.15 31.90 Swatch Group * (UHRN:SW) - 195253 32.25 -5.29 luxury goods stocks is short-term weak- and Evan Clark, New York 1.19 1.09 Bluefly (BFLY) - 1975 1.09 -5.22 Consumer Confidence Gets Boost in April 20.16 19.43 Richemont * (CFR:VX) 4.6 3201773 19.89 -4.92 61.10 57.40 PPR * (PP:PA) 13.7 987205 58.49 -4.77 By Vicki M. Young According to the Conference Board’s latest survey, consumers’ assessment of Consumer confidence rose current job market conditions remain * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on vigorously in April as faint signs of op- mixed, with those stating jobs are hard to the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss timism surfaced on a still challenging get declining to 47.9 percent from 48.7 per- francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. economic landscape. cent in March. However, those who said The Conference Board’s Consumer jobs are plentiful also fell, this time to 4.5 Confidence Index jumped to 39.2 in percent from 4.7 percent last month. April, up from 26.9 in March. The gain The index hit an all-time low of 25.3 resulted from a boost in the expectations in February and rebounded only mar- Footwear Sales Lift Under Armour Profits 38% component of the overall Index, which ginally in March. Since peaking last By Alexandra Steigrad “This past quarter’s successful entry leaped to 49.5 from 30.2 last month. September at 61.5, the expectations into running, and our increased presence While the present situation component component’s strongest showing had Accelerating footwear sales in the mall, are prime examples of how rose far more modestly, to 23.7 from 21.9 been its November mark of 44.2. helped Under Armour Inc. record a 38 we can combine new product categories in March, the overall result still quali- Looking ahead on a short-term basis, percent boost in first-quarter profits and with new distribution channels to deliver fied as the fourth-largest increase in the those who expect business conditions lift its stock Tuesday. growth,” chairman and chief executive 32-year history of the survey. to worsen over the next six months fell The Baltimore-based activewear pro- officer Kevin Plank said on the company “The Present Situation Index posted to 25.3 percent from 37.8 percent, while ducer said net income for the period earnings call. a moderate gain, a sign that conditions respondents who anticipate conditions ended March 31 grew to almost $4 million, Investors sent the company’s stock up have not deteriorated further, and may will improve rose to 15.6 percent from or 8 cents a diluted share, versus $2.9 mil- $2.80, or 12.9 percent, to close at $24.50 in even moderately improve, in the sec- 9.6 percent last month. lion, or 6 cents a share, in the year-ago New York Stock Exchange trading. ond quarter,” said Lynn Franco, direc- Over the next six months, consumers quarter. Net sales increased 27.1 percent Chief financial officer Brad Dickerson tor of The Conference Board Consumer who anticipate fewer jobs in the short to $200 million, from $157.3 million, a said although footwear is planned to be the Research Center. “The sharp increase term fell to 33.6 percent from 41.6 per- year earlier. Analysts surveyed by Yahoo company’s “largest revenue growth driver in the Expectations Index suggests that cent and those who expect more jobs Finance expected earnings per share of 3 in 2009,” he expected the training footwear consumers believe the economy is near- rose to 13.9 percent from 7.3 percent. cents on sales of $182.2 million. business to be down during the year. ing a bottom; however, this Index still Jewelry designer Steven Lagos be- Apparel sales rose 2.4 percent to When the economy begins to improve, remains well below levels associated lieves things are bottoming out. “What $132.2 million, with the company’s wom- Under Armour is poised to be “one of the with strong economic growth.” you’re seeing is the economy in a reset en’s business generating the strongest few companies that will accelerate very Mitchel Friedman, senior vice presi- mode.…There’s [some] pent-up demand. growth rate. Licensing revenues de- quickly,” said Sterne, Agee & Leach analyst dent of RCS Real Estate Advisors, com- Everybody wants this to be over; they want creased 7.4 percent to $5.1 million. Sam Poser, who sees room for the firm to ex- mented, “People are feeling better be- to feel better about their situation. The But footwear sales, catapulted by the pand globally and in women’s. International cause they are more comfortable with the very wealthy are still very wealthy, but the introduction of Under Armour’s new run- sales, which accounted for just 4 percent of world we are in today. Four to five months spending patterns are changing. They’re ning sneaker and shipments of its perfor- total revenues for the quarter, should con- ago, the concern was, ‘How bad will it get?’ still doing things to satisfy their desires, mance training shoes, more than tripled tinue to grow, as the company begins test- I don’t think we’ve hit bottom.…Confidence it is just not as outward. It is now out of for the quarter to $56.9 million from $16.6 ing apparel at Foot Locker Europe during is not restored, but fear is abating.” vogue to be spending,” the designer said. million a year ago. the back half of the year, he said. WWD, WEDNESDAY, APRIL 29, 2009 15 WWD.COM Accessories Outpace Apparel at Stylemax By Beth Wilson wear and accessories. broidery to differentiate the product. Lang “there’s some crossover, not a tremen- also has tightened staffing, spent more time Amid the recession, more buy- dous amount,” mccullough said about hold- on the phone with her accountant and kept ers turned out for chicago’s march ing the two trade shows at roughly the same a careful eye on margins. “every month stylemax trade show than last year, mar- time. “there is no reason not to do it.” needs to be a profitable month,” she said. ket organizers said. many retailers, however, altered their At About Face, a salon and boutique “Attendance is trending up, which is buying to match the economic trends, in mequon, Wis., just north of milwaukee, amazing,” said susan mccullough, senior with some ordering more accessories and owner and stylist Kelline Verbeke said she vice president of apparel for merchandise less apparel. has reduced the amount of apparel she mart Properties inc., who did not release Karen Lang, owner, and tricia durkin, buys, noting that shoppers are looking for specific figures for the four-day market that buyer, for trousseaux in hinsdale, ill., more inexpensive guilt-free purchases. ended march 31 and featured fall fashions. shopped for cleaner lightweight leather “it’s got to be something that cheers them “Who knew? i’d like to think we’re doing handbags from Viva, wallets and hand- up,” she said, explaining that while the something right, but i don’t know why. it bags from Lotus as well as jewelry with more affluent area has not been as hard-hit may be kismet.” a spiritual or personal meaning, such as as others, more women are reporting their A pair of looks from Linda Lundstrom. but, mccullough noted, “if you’re a charm bracelets from cousin claudine, husbands have recently lost their jobs. retailer in the midwest, fall is really im- and dressier t-shirts from LinQ. in turn, Verbeke shopped stylemax for in milwaukee proper, owner Jenna portant. it’s for all the marbles.” Accessories, the pair said, continue to easy impulse buys suitable for a variety of shultz opened her women’s and men’s bou- that, in turn, translated to more opti- be a strong category at the 1,000-square- ages and body types, including wraps, scarves, tique called Flaire in october as the stock mism and excitement on the seventh floor of foot lifestyle specialty store, which stocks jewelry from Alexia crawford, cheaper hand- market began to plunge. At first, she played the merchandise mart. “it is way more posi- home furnishings, gifts and apparel. that’s bags and hair accessories for prom and her buy safe, ordering more conservative tive than i expected,” mccullough said. because jewelry, in particular, continues weddings from Pin & tube. Although the styles, but then realized her shoppers re- the fact that stylemax coincided with to be an easy sell for women shopping for salon and boutique has sold higher-priced sponded to more fashion-forward pieces. the national bridal market chicago, gifts or a pick-me-up purchase for them- $350 handbags from hobo, those are taking As a result, shultz placed orders at which took place on the mart’s eighth selves, durkin said. longer to sell than less expensive goods. stylemax with 2b. rych, a new line at the mar- floor, added to the energy in the build- to counter the economic forces, “everyone likes to feel like they’re getting ket, for pine green blouses with rose details ing, with some bridal buyers shopping trousseaux may buy items such as t-shirts a deal,” she said, “and at lower prices, peo- and front pockets, silk cropped jackets with stylemax for lingerie, special occasion and modify them with monograms or em- ple don’t have to think about it as much.” beading details and ruffled leather jackets.

WWD.COM/CLASSIFIEDS

For more career opportunities log on to WWDCareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise. West Designers – Footwear Dynamic Women’s Fashion Foot- wear Company is growing and FOR SALE NAPOLEON PERDIS Coldwater Creek is a rapidly growing triple-channel women’s seeking creative Designers to be Custom shirt factory with machinery apparel retailer located in the resort community of part of our product development TRIM SALES - LOS ANGELES and equipment available in Fall River, COSMETICS Sandpoint, Idaho. Tremendous career opportunity to join a team. Ideal candidates must have MA. Compete with the world’s finest profitable, billion dollar, company. We are seeking qualified, Service and grow and say “Made in U.S.A.” is seeking a highly a minimum of five years experience LA Denim accounts! SAVE U.S. JOBS - BUY AMERICAN. motivated experienced high level, candidates for opportunities in our Merchandising in Footwear Design with the ability Experience necessary! Financing available to qualified buyers. Business Development Mgr. division: to sketch footwear with Contact Sam Shapiro at: Salary+Commission United Appraisal Services, Inc. Please email resume proficiency in Photoshop and Web Merchant Illustrator. Must be self-motivated, Email: [email protected] 508-676-8247 ext. 100 and salary reqs: Qualified candidate must have at least 3 years of APPRAISALS / AUCTIONS [email protected] with a high energy level and willing ecommerce experience within a specialty women’s apparel to travel domestically and interna- company. tionally. Strong understanding of Designer $60-65K. Current exp in the marketplace and merchandising swimwear for junior market required. Manager Level – Retail Merchandising skills a plus. Well known licensed co. Midtown Qualified candidate must have at least 5 years of management Spaces [email protected] 973-564-9236 experience within a specialty women’s apparel company with We are a leader in the industry Pattern/Sample/Production Any style uniform/fashions over 200 stores. and offer excellent benefits and COMMERCIAL Stretch knits/woven Cut&sew GIRLS/TWEEN competitive compensation along Call;718-539-2475/Brenda Sr. Mgr Level-Product Developer, Accessories with company-wide shoe discounts. REAL ESTATE E-mail: [email protected] HEAD DESIGNER Qualified candidate must have at least 5 years of management Immed. opening for designer experienced experience in PD or Design in accessories including jewlery . Please send resumes, in “Casual” Lifestyle Brand Sportswear, PATTERNS, SAMPLES, to be sold to major discount chains, Please send resumes to: salary history and sample sketches PRODUCTIONS not fashion forward, but trend right. Email: [email protected] with subject line: Must have min. 10yrs exper. “Designer Footwear – Your Name” All lines, Any styles. Fine Fast Service. Please e-mail resume w/salary req. to: Fax: 208-265-3172 Call Sherry 212-719-0622. to: [email protected] FASHION LOFT [email protected] www.coldwatercreek.com SHOWROOMS Patterns, Samples, Equal Opportunity Employer Productions, Cutting Graphic Artist $50-70K. Current exp in Sample & Pattern Makers / Designer TECH DIR/LARGE SIZE $130K+++ and SUITES Any styles. Fine, fast work. ladies urban sportswear graphics. Full & Administrative Assistants Better Collection. Sprvs 5. Must come THE BRYANT PARK HOTEL Call Lucy 212-840-1136 time perm position. No free lancers. from Lg Size Bet Contemp Mkt. Daily and Weekly Rates 212-642-2166 Wanted at expending fashion house [email protected] 973-564-9236 for both couture and luxury ready to [email protected] or 212-947-3400 PATTERNS, SAMPLES, wear lines. NYC and Miami. Fax 305- BIG SHOWROOM/ OFFICE 397-1696 or [email protected] Technical Designer $40-60K. Must W. 38TH. 7TH & 8TH AVE. PRODUCTIONS Handbag Designer & Handbag have current exp in Junior swimwear BIG WINDOW. $2800/MONTH Full service shop to the trade. TECH DESIGNER required. Midtown co. Career oppty. + UTILITY. (917) 291-6085 Fine fast work. 212-869-2699. Salesperson Needed Ladies outerwear importer seeks a full [email protected] 973-564-9236 Midtown Co. looking for designer of time temporary tech designer to spec, high end brands in leather & vinyl. fit, & complete tech pack for overseas. Must be able to work several projects Must be efficient with excel. Email TECHNICAL DESIGNER at one time taking them from start to resume to: [email protected] Seeking a Technical Designer with finish. Also looking for seasoned sales knowledge of patternmaking & grading. professional to manage a brand - main- Must be able to review samples & commu- NAT’L SALES MANAGER tain existing business, open new, fore- TECH DESIGNER...... TO $75K nicate corrections to overseas offices. Missy better sweater co. seeks aggressive casting, etc as well as product input. Missy Sweaters, Fluent Mandarin Organization & multi tasking skills & highly motivated individual. With Fax resume & sal req to 212-686-0945. Jennifer Glenn SRI Search 212-465-8300 req’d as well as knowledge of Excel. Send management exp. & major stores follow- [email protected] resumes: [email protected] ing. Email resume: [email protected] INTRODUCING or call 917-609-8839 MIS Manager Garment Company seeks MIS Manag- Salary Plus Commission WWDCAREERS.COM er to manage our web based network. F/T Sales Position in NY Aggressive & PC Based system with garment pack- Energetic Ladies Jr & Plus size Fash- The New and Improved age software. Must be experienced ion 5 years sales exp. w/ chain and fashioncareers.com with ASN’s and EDI. E-Mail resume dept. store, private label. Fax 305- 597- including salary required to: 9436 or [email protected] [email protected] AMERICA’S COTTON PRODUCERS AND IMPORTERS. ™ Service Mark/Trademark of Cotton Incorporated. © Cotton Incorporated, 2008.