TOUGH QUARTER HUDSON’S BAY CO. SEES LOSSES INCREASE DURING THE THIRD QUARTER DUE TO COSTS OF THE SAKS FIFTH AVENUE BOOM ACQUISITION — AND THE INCREASINGLY MANUFACTURING IS ON THE UPSWING IN PROMOTIONAL ENVIRONMENT. PAGE 2 THE BOROUGH. PAGE MW1

2014 PRE-FALL COLLECTIONS

WWDTHURSDAY, DECEMBER 12, 2013 ■ $3.00 ■ WOMEN’S WEAR DAILY

Haute Rodeo Talk about a fashion hoedown. On Tuesday night, Karl did Dallas in a Texas-big way, staging ’s Métiers d’Art show at the city’s vast Fair Park. The festivities featured a drive-in screening of Lagerfeld’s short fi lm “The Return” which was watched from 74 vintage cars; a postshow saloon shindig (mechanical bull, anyone?) and, most importantly, fabulous clothes. Here, Lagerfeld’s darlings, fi nished with frills, fl amboyant jewelry and, of course, cowboy , scaled down for an extra dash of chic. For more, see pages 4 to 6.

PHOTO BY STEVE FOXALL 2 WWD THURSDAY, DECEMBER 12, 2013 WWD.COM Saks Deal, Promotions Sap HBC Net THE BRIEFING BOX tain sites. Some openings of Saks full-line and Off IN TODAY’S WWD By DAVID MOIN 5th outlets in Canada are seen, as are some full- line closings in the U.S. Some could be converted HUDSON’S BAY CO., impacted by its $2.9 billion to Lord & Taylor. Baker has stated the company is purchase of Saks Fifth Avenue and the promotion- prepared to invest $200 million to upgrade the Saks al environment affecting margins, saw its net loss Fifth Avenue flagship in . Sources specu- grow in the third quarter despite revenue gains. late that an overhaul of the main floor and convert- The Toronto-based retailer said its loss rose ing the lower level to selling space are possible to to $124.2 million in the period ended Nov. 2, com- expand cosmetics, accessories and jewelry. pared with a loss of $14.4 million a year ago. “While we would prefer our year-to-date perfor- HBC, promoting aggressively to draw shoppers, mance to have been stronger, our investments in saw total sales rising 5.8 percent to $984.1 mil- both store productivity and our omnichannel plat- lion. On a same-store basis, sales at Lord & Taylor form have produced clear and promising results,” turned positive for the first time in a year, rising 1.6 Baker said. “We are confident that these investments percent. Sales at Hudson’s Bay department stores are necessary and will benefit earnings over the long in Canada grew 6.4 percent. E-commerce sales term. Further, the addition of Saks will allow us to were $48.9 million, an increase of 58.3 percent com- leverage these investments over a larger platform. pared with the third quarter of 2012. Saks also provides us with the opportunity to create In reporting the results Wednesday, HBC execu- considerable economies of scale. We are determined tives echoed widespread industry sentiment about to take full advantage of this and deliver $100 mil- Sarah Chalke, Rashida Jones and Cat Deeley KEENAN/WIREIMAGE STEFANIE how tough holiday business has been. With just two lion in synergies over the next three years.” at the Parker party. For more, see WWD.com. weeks to go before Christmas, “traffic patterns are A key initiative at the Hudson’s Bay department PHOTO BY going to be difficult,” warned Richard Baker, chair- store group entails ongoing upgrade and expansion man and chief executive officer of HBC, in a confer- of omnichannel operations, with expanded online as- ence call. “In November, we expected stronger sales.” sortments and fulfillment capabilities, “auto locate” Baker characterized apparel pricing as increas- capabilities in the stores to find items and sell them Hudson’s Bay Co. saw its net loss grow in the third quarter ingly competitive, and for next year, the planning faster and at better margins, and a more robust infra- despite revenue gains. PAGE 2 has been more conservative after an inventory re- structure. “Omni remains a start-up business,” Baker ceipt flow that has been too heavy. said, citing its high sales growth yet lower EBITDA Hennes & Mauritz AB will reveal today that it has collaborated In the last quarter, the company’s operations contribution than brick-and-mortar. “We have made with Alexia Niedzielski and Elizabeth von Guttman of Ever improved with “normalized” tremendous progress, starting PAGE 7 net earnings rising to $8.9 mil- from no online sales just a couple Manifesto on its new Conscious Exclusive line. lion, against the year-ago loss of of years ago. But we are not yet $300,000. Normalized earnings ex- satisfied with the level of service Inditex reported Wednesday that nine-month net profits and clude the impact of onetime costs and with all the sku’s [stockkeep- sales grew at a slower pace than in 2012, but it was steaming 5.8% PAGE 7 such as the Saks deal and restruc- ing units] we have available and ahead with store openings and renovations. turings. Earnings before interest, HUDSON BAY CO.’S SALES GROWTH volume levels. We are committed taxes, depreciation and amorti- IN THE THIRD QUARTER. to having a state-of-the-art online Fashion Girls for Humanity has lined up a series of one-of-a- zation were $64.3 million, an in- offering in Canada. We hope to be kind items and “experiences” for an online auction benefiting crease of $16.4 million compared there in the next 12 to 15 months. victims of Typhoon Haiyan in the Philippines. PAGE 7 with the third quarter of 2012. We don’t think the complexity of adding Saks online For the fourth quarter, HBC projects total sales of in Canada is going to slow down or divert any of our The Hollywood Reporter’s 22nd annual Women in $1.37 billion to $1.41 billion, and normalized EBITDA efforts. We will be leveraging our existing online and Entertainment breakfast at The Beverly Hills Hotel on of $160 million to $180 million. Same-store sales distribution capabilities in Canada to create a better Wednesday honored the magazine’s Power 100 list. PAGE 7 will benefit from the negative impact of Superstorm launch of Saks online. In the U.S., Saks has a more Sandy last year. However, with all the price promoting mature and higher-functioning online business, and Moncler’s road show ended Wednesday and shares are to and some higher costs, a lower gross profit rate in the we are using their quality people to help us with Lord be priced at 10.20 euros each, or $14.07 at current exchange, current quarter and full year is expected. & Taylor and Hudson’s Bay’s online businesses.” according to the company. PAGE 8 Saks’ figures were not included in the third-quarter “Calculated” investments in stores is another results or the guidance, since the deal was closed at initiative, Baker said, citing the recent renovation the beginning of the fourth quarter. In the call, how- of the Vancouver flagship, which has since seen a LVMH Moët Hennessy is launching a program ever, Michael Culhane, HBC’s chief financial officer, 34 percent sales lift, and the creation of Canada’s that seeks to train Chinese-Americans to ready them for PAGE 8 said Saks posted $795 million in total sales, with same- largest floor at the Hudson’s Bay flagship on employment opportunities in the luxury retail sector. store sales ahead 9.6 percent driven by increased pro- Queen Street in Toronto. Six Hudson’s Bay loca- motional activity and continued strength in e-com- tions have received significant renovations. Luxury e-commerce site Moda Operandi has reeled in just merce. Normalized EBITDA came to $68.2 million. Developing partnerships with brands, such as over $20 million in Series D funding. PAGE 8 With the Saks deal done, HBC is “in the midst of Topshop/Topman in-store shops that are being rolled a transformational period,” Baker said, explaining out, is another initiative. Last quarter, Topshop/ Brand owners, factory operators and real estate developers that they are working on integrating Saks and mak- Topman, along with women’s and men’s apparel gen- are turning Brooklyn into a growing hub for apparel and ing the luxury retailer leaner. “There is lots of work erally, ladies , and accessories, were accessories manufacturing. PAGE MW1 ahead of us.” bestsellers at Hudson’s Bay. At Lord & Taylor, men’s Dramatic changes have already happened, and women’s apparel and handbags fared the best. Bergdorf Goodman Men has unveiled a boutique for luxury with HBC eliminating much of the senior team E-commerce was strong at both banners. men’s brand Berluti. PAGE MW4 at Saks and naming Marigay McKee as president. For the year to date, -line growth has been Additional layoffs are expected as Saks’ back office strong at Hudson’s Bay, but disappointing at L&T Emerisque Brands, owner of MCS, is discontinuing the label’s operations get consolidated into the central opera- and Home Outfitters. Target in Canada has swiped women’s division and focusing on men’s wear. PAGE MW4 tions of the Toronto-based HBC. In January, Saks’ some business from Home Outfitters. distribution center in Maryland will close and op- With HBC owning valuable retail locations on erations will shift to the Lord & Taylor distribution Fifth Avenue and elsewhere, Baker said he is eval- ON WWD.COM center in Wilkes-Barre, Pa. That will lead to layoffs, uating “every option on how to share the value of as well as efficiencies in trucking. our real estate we have locked into this company” McKee has been busy visiting Saks stores around for stockholders. One possibility is to create a real EYE: Hollywood starlets turned out for a party thrown by the the country and developing plans to pump up cer- estate investment trust. Parker label on Tuesday. For more, see WWD.com.

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PRE-FALL HE’S A GERMAN-BORN, Paris-cultivated citizen COLLECTIONS of the world. But maybe that was all one big, cosmic mistake. Because would have made one heck of a Texan. Both are bold, brash and fear- less. They believe in the power of aspiration and that, with drive, diligence and nonstop hard work, no goal is beyond them. This assumes a baseline of monster tal- ent, and why not? Given their abundant natural gifts, neither Lagerfeld nor Texas bothers with the silliness of false modesty. Like Lagerfeld, Dallas, the jeweled crown of Texas — where two days after the big snowfall, sidewalks looked pristine and remaining snow banks irritatingly free of New York-like soot — is obsessed with style. Both see it as essential to the human condition as the occasional blue-sky respite at the ranch. Lagerfeld chose Dallas for this year’s staging of Chanel’s an- nual Métiers d’Art show in homage to the city that welcomed Mademoiselle Coco Chanel in her postwar return to fashion when Paris shunned her. The event had to be major. And so it was, a brash, over-the-top, three-part ex- travaganza staged for an audience of 900 that featured imported celebrities such as Kristen Stewart, the face for this Chanel collection, Zoë Kravitz, Dakota Fanning, Lily Collins and Alexa Chung. (At the postshow hoe- down, Chung was among the first to brave the mechani- cal bull.) There was, too, a host of local luminaries including Lagerfeld friend Lynn Wyatt. “For me, she is the Texas woman,” he said. “There is nothing bet- ter.” Karen Katz led the sizable Neiman Marcus con- tingent. On Wednesday, Katz presented Lagerfeld with the Neiman Marcus Fashion Award, the same honor Stanley Marcus bestowed on Coco Chanel in 1957.

Karl’s High Dakota Fanning and Kristen Stewart

“It’s almost like going to the theater, because Karl puts so much thought and time into every detail,” Time in Fanning observed. The Texans concurred, with such assertions as “he really nailed Texas” (Lucy Reeves Wrubel); “the collection was playful and happy and a beautiful event” (Simona Beal), and, “this is unlike anything this town has ever seen” (Stephen Summers, co-owner of Highland Park Village shopping center). At least one guest felt an aura not typically associated with Lagerfeld’s approach to fashion. “It was eclectic, Texas fun and very cowboy chic. Yo u could almost feel the spirituality in the clothing,” said Jessica Nowitzki. Meanwhile, proud consumer Becca Cason Thrash fo- cused on more concrete matters. “It’s going to make a fortune for Chanel because there are so many people who have ranches and country homes,” she said. “I wanted like 99 percent of it.” The festivities played on the style and history of Texas, or Lagerfeld’s perception of them. (He may read voraciously, but fact-checking research for a fashion show? Come on.) He worked the Paris-Dallas connec- tion with French versions of American pop standards (“Son of a Preacher Man,” “These Were Made for Walkin’”) and an old-fashioned drive-in and a sa- loon soiree, while invoking Wild West archetypes (or stereotypes, depending upon one’s point of view) and a soupcon of political incorrectness (Lagerfeld’s god- son, the tot Hudson Kroenig, made a runway stroll carrying a tiny jeweled pistol). And oh, yes, a lineup of fabulous clothes which, for all of their cowboy-Indi- an-and-rancher references, were for the most part con- summately wearable, at least for those in the rarefied Métiers d’Art demographic, as many Dallas ladies are. To that end, Lagerfeld thought it high time to give a shout-out to an old business buddy. “In the last year, peo- ple were going overboard with the East, China, and so I PHOTOS BY STÉPHANE FEUGÈRE, STEVE FOXALL AND GIOVANNI GIANNONI {Continued on page 6} WWD THURSDAY, DECEMBER 12, 2013 5 WWD.COM

Anna Wintour, Karl Lagerfeld and André Leon Talley.

FOR MORE PHOTOS, SEE WWD.com/ fashion-news.

Poppy Delevingne Janie Condon

Alexa Chung and Jacqueline Harley Viera-Newton Anderson 6 WWD THURSDAY, DECEMBER 12, 2013 WWD.COM 2014 {Continued from page 4} thought of an homage to America,” he said during a Monday afternoon PRE-FALL Chanel’s preview. Alas, as big, powerful and COLLECTIONS confident as Lagerfeld and Dallas are, neither is immune to the ele- ments. Dallas got blasted by the U.S. Growth storm, which caused the diversion of Lagerfeld’s flight to Kansas City By HOLLY HABER for three hours. “I stayed on the plane,” he delivered in his bullet- “IT’S JUST a fashion invasion,” rapid delivery. “I had my books.” said Bruno Pavlovsky, president He also had Choupette in tow, an- of fashion at Chanel, before the other frequent flyer, who whiled house’s extravaganza at Fair Park the ground-delay hours in her in Dallas. Louis Vuitton kitty carrier made, It wasn’t much of an Lagerfeld said, “especially for her exaggeration. The company by Mr. Arnault. Her name [is on it]: fielded an army of style that Choupette Lagerfeld.” (How much numbered 400 to 500, most of more Texas can you get?) Once in whom flew in for a production Dallas, Lagerfeld & Co. took no Linda Gray Becca Cason Thrash that took four months to prepare. time in taking over much of the “This is a very special moment Rosewood Mansion Hotel, where for the brand,” Pavlovsky noted. he conducted his fittings amidst the “Our guests — press, celebrities, calm chaos that swirls around every FOR MORE customers — appreciate having one of his Chanel shows. PHOTOS, SEE something kind of unique. It The main event was held at WWD.com/ positions the brand for the Dallas’ vast Fair Park, a master- future; it is not an immediate fashion-news. piece of Art Deco architecture return. However, the fall that offers the kind of endless collection has been so successful horizontal space Lagerfeld loves. in the boutiques. The orders are The drive-in motif accommodated growing double digit. The sales the premiere of “The Return,” are growing.” the short film Lagerfeld directed The U.S. and Europe are the about Chanel’s return to busi- pillars of Chanel’s business ness. It stars Geraldine Chaplin and are on the upswing and — brilliant, as the aging, unchar- gaining new customers, acteristically insecure Chanel Pavlovsky said. Ready-to-wear — and Amanda Harlech, who of- in particular is having a strong fers a mean American accent as year and is “back to the big Bettina Ballard, the supportive numbers,” he said. editor of American Vogue. Once Dallas is not as big a market as

again, Lagerfeld’s set was remark- GIANNONI STEPHANE FEUGERE, STEVE FOXALL AND GIOVANNI New York or Los Angeles, but it’s able, a vast lot featuring four giant of historical importance for the screens, assorted food and drinks Zoë Kravitz brand given Coco Chanel’s visit stations, and 74 vintage roadsters PHOTOS BY here in 1957 and the label’s long- imported from all across the U.S., term relationship with Neiman both superflashy convertibles and Marcus, said John Galantic, tough-guy pickup trucks, from president of Chanel U.S. which guests would the film. The company is “making After the screening, the crowd Honoring Karl more investment than ever” in exited the building and crossed the renovations and expansions of its bridge that had been constructed DALLAS — Is there anyone besides Karl U.S. boutiques, Galantic added. over a fountain leading to the next Lagerfeld for whom Neiman Marcus would “We continue to bet on the stop, a huge barn-cum-runway ap- close its flagship for four hours during the current and long-term growth of pointed with raw wooden seating rush of the holiday season? the U.S.,” he said. and aged-looking flags hung from The retailer rolled out the red carpet The house plans to make the ceiling: Texas, U.S., France, for Lagerfeld Wednesday with an awards over its stores in Houston and Chanel. Guests took their seats presentation and luncheon attended by Orlando, Fla., next year plus to the strains of a harmonica’s about 100 people, including about 80 devout, 14 wholesale installations, wail and the show started, a mas- Chanel-clad customers from five states and all under the eye of interior terpiece of lavishly embellished as far away as New York and California. The designer Peter Marino. practicality that is a hallmark of ceremony capped the designer’s Métiers “It’s important to have Lagerfeld’s brilliance. First out: d’Art collection that made its debut the something that is very consistent — rich, earthy tweeds, utterly previous evening. worldwide, strong, and Peter is elegant, their Texas touches limit- “They say that things are bigger and better using very special materials,” ed to a scaled-down cowboy or in Texas and last night proved the point,” Pavlovsky said. “At the end of the two-toned . But soon, the refer- said Karen Katz, Neiman Marcus Group chief day, you have a better feeling of ences rolled in with blanket stripes, executive officer. “It was extraordinary.” the clothes, the product, which is wrinkled leathers and prairie Katz noted that it was logical that Chanel our objective.” . A fabulous passage played staged the show here because the city and Geraldine All of fashion is performing denim (, skirts and skinny state are booming. Chaplin Lynn Wyatt well this year in the U.S., ) off of white frills. Fluid “We Texans do have a style of our own,” Galantic said, and the company dresses (a beauty on Joan Smalls she said. “Some of our reputation of our is also seeing growth in was bedecked with Texas stars) Texas style is fact, and some is fiction. When fragrance, makeup and care. and sturdy A-line skirts swung it comes to big hair, that is all an urban myth. Fine jewelry is a small niche but Seventies; Lagerfeld noted accu- However, when it comes to makeup and one of the fastest-growing areas, rately that one “has the look clothes, there is a lot of truth that we love he added. of my Chloé [back in the day].” And both. We are very proud that there are more Unlike some international speaking of references, how could hair and nail salons per capita in the state of markets that are tourist oriented, a big, cozy, Aztec-motif not Texas than anyplace else in the U.S.” U.S. sales come primarily from recall America’s own maestro of After presenting the award, Katz engaged local customers, Galantic noted. Southwest chic, ? Lagerfeld in an impromptu Q&A. About 400 clients attended a Everywhere there was fringing, Vogue editor in chief Anna Wintour cohosted cocktail party Monday evening feathers, beadwork and remark- the event and gave heartfelt remarks in before Tuesday’s screening, able fabrics treatments, all with which she chronicled Lagerfeld’s many runway show and honky-tonk the look of the Southwest and the talents. “After having seen the spectacular barbecue complete with line craft of Chanel’s specialty ateliers. Chanel extravaganza we were treated to last Karen Katz and dancing and a performance by One had to get up close to see that night, I understand why everything is bigger Karl Lagerfeld British electronic band Hot Chip. the shiny was gold-leaf lac- in Texas, and Karl has finally found a place A video of the runway show quered onto denim, that the fring- that thinks and acts on the epic scale that he that had been utterly transformed into a will be posted to Chanel’s ing on the sleeves of a romantic does,” she said. creamy room with crown moldings, a crystal Web site within a few days, was finely sliced, paper- Sitting front row for the ceremony was chandelier and a host of white roses and Pavlovsky said. weight leather, and that the single Lynn Wyatt, who was “blown away” when tulips on the tables. Tuesday night’s premiere feather in each ’s hair was the designer told her the Texas collection Geraldine Chaplin, whose star turn as of the Karl Lagerfeld-directed patterned from pieces put together was dedicated to her. “I mean, I can’t think Mademoiselle Chanel in the film “The 30-minute film “The Return” was in meticulous collage. of a compliment more special and more Return,” shown before the show, had many immediately posted to Chanel’s It was very Texas, and Lagerfeld unique than that,” she said. “But aside from amazed at its accuracy, said working with Web site and is expected to at his showman’s best. And that’s a that, I loved the collection. It was refined Lagerfeld was a pleasure. “Karl would give reach a global audience. The powerful combination. but it had sex appeal. It was Texan with a us pages and pages to learn, and he was “Marilyn and No.5” short has — WITH CONTRIBUTIONS refinement to it.” very lenient if you didn’t get the words quite had 8.3 million views, the FROM H.H. The luncheon was held in the shoe salon right,” she said. — H.H. company said. WWD THURSDAY, DECEMBER 12, 2013 7 WWD.COM MEMO PAD H&M Eco-Collection Takes Shape

are due to hit stores on April 10. FEMALE POWER: The Hollywood Reporter’s By JOELLE DIDERICH Launched in 2011, the Conscious 22nd annual Women in Entertainment Collection is part of H&M’s commitment breakfast at The Beverly Hills Hotel PARIS — Hennes & Mauritz AB will re- to using only sustainable by 2020. on Wednesday honored the magazine’s veal today that it has collaborated with This includes organic cotton, recycled Power 100 list, topped by Anne Sweeney, Alexia Niedzielski and Elizabeth von cotton and cotton grown under the aegis cochairman of Disney Media Networks and Guttman of sustainability think tank of the Better Cotton Initiative, which president of ABC/Disney Television Group. Ever Manifesto on its new Conscious promotes farming practices that reduce “I’m looking around this sea of perfect Exclusive line of red-carpet looks made water and chemical use. blowouts and you know who I feel bad for? from more sustainable materials. Valletta is known for her environ- The 101st most powerful woman,” said The Swedish fast-fashion giant mental commitment. This fall, she emcee Jimmy Kimmel. tapped Amber Valletta as the face of collaborated with online retailer Adding to the glam factor were actresses its Conscious Exclusive and Conscious Yo o x on the eco-fashion initiative Jane Fonda, Ahna O’Reilly, Angie Harmon, Allison collections of environmentally sus- Master & Muse, which showcases Williams, Diane Lane, Judy Greer and Melissa tainable clothing. Valletta succeeds sustainable designs. Leo. The event honored Oprah Winfrey with Vanessa Paradis. “I’m very excited to work with the the Sherry Lansing Leadership Award. Niedzielski and von Guttman also H&M Conscious campaign, because we “Kanye, don’t you even think about taking model for the Conscious Exclusive cam- share the same values about sustain- this award from Oprah,” Kimmel said to paign, which features outfits inspired by ability,” Valletta said. , who accompanied Kim Kardashian “a mix of flamenco and bohemia.” “This collection shows that you can be to the event. The Conscious collection, made from as mindful about people and the environ- Presenting the award to Winfrey, her fabrics such as organic cotton, hemp, ment as fashion conscious,” she added. I friend Maria Shriver wrote a poem called Tencel and recycled polyester, will be simply love the designs and the fact that Elizabeth “Becoming” in lieu of a speech. “Be easy available in all H&M stores that carry all the pieces are made with organic, re- von Guttman on me; it’s not Maya Angelou — that’s who women’s wear and online, while the cycled and cellulose fabrics shows that and Alexia normally writes poems for Oprah,” said Conscious Exclusive range will be sold in you don’t need to compromise fashion for Niedzielski Shriver. But Winfrey was nonetheless moved, 150 select H&M stores and online. Both sustainability anymore.” saying, “That beats a eulogy, I gotta tell you. And you’re alive to hear it? Amazing.” Winfrey urged the crowd to use their positions in the industry to mentor young women. “The real privilege is getting to use Inditex Expansion on Track; Growth Slowing who you are to elevate the higher good of everyone else. That is the true purpose of PARIS — Inditex reported Wednesday Momentum was good heading into “Our space growth and online launch- leadership. How you do it? That should be that nine-month net profits and sales the fourth quarter, with store sales in es are on track,” the executive said. your greatest joy.” — MARCY MEDINA grew at a slower pace than in 2012, but constant currency terms rising 10 per- “We are enlarging our flagships it was steaming ahead with store open- cent between Nov. 1 and Dec. 8. around the world and rolling out the ings and renovations, and planned to Isla noted that recent indica- latest image into new and key exist- roll out its online platform in Mexico tors confirmed a recovery in the key ing stores. The average size of new and South Korea in 2014. domestic market, and he expected units is also increasing. These initia- Eva-Lotta Sjöstedt The parent of fast-fashion brands Inditex to post positive sales growth in tives provide higher product visibili- including Zara and Massimo Dutti said Spain in the second half of 2013. ty, stronger visual merchandising and Karstadt’s New CEO net profit rose 1 percent to 1.67 billion “This year, 2013, is a year of strong an enhanced in-store experience,” euros, or $2.2 billion, during the pe- activity from the point of view of expan- Isla added. riod from Feb. 1 to Oct. 31. Net sales sion inside the group,” he said during a In recent months, Inditex has By MELISSA DRIER totaled 11.93 billion euros, or $15.76 conference call with analysts. “We con- refurbished Zara stores in loca- billion, up 5 percent versus the same tinue seeing strong growth opportuni- tions including New York, London, BERLIN — Ending a long search and weeks period a year ago. ties in the different geographies.” Amsterdam, Milan and Shanghai. It of speculation, Eva-Lotta Sjöstedt has been This compares with a 27 percent The group, based in Arteixo, Spain, has opened new Zara units in Paris; named chief executive officer of the Karstadt rise in net profit and a 17 percent said it opened 240 larger new stores Berlin; Lugano, Switzerland; Jinhua, department store chain, effective Feb. 24. jump in sales in the first nine months in 54 markets during the period, China, and Canberra, Australia, Sjöstedt, who was previously deputy of 2012. Dollar figures have been con- bringing the total across 86 markets to among others. global vice president of the Ikea Group, suc- verted at average exchange rates for 6,249 by Oct. 31. In the third quarter, it launched ceeds Andrew Jennings, who is vacating the the period concerned. For the financial year as a whole, online sales in the Russian ceo post at the German retailer when his Branding the performance “satis- Inditex plans around 500 openings, to Federation for the Zara, Bershka, contract expires at the end of the year. factory,” Inditex chief executive of- enlarge 100 flagships worldwide and Massimo Dutti, Stradivarius and The 47-year-old Swedish manager began ficer Pablo Isla noted that the strong absorb 175 smaller units into neigh- Oysho banners. Inditex has intro- her career as a fashion designer and then euro impacted earnings, pointing out boring stores. Store-space growth duced online sales in 24 markets over buyer for various retailers in Asia. She has that sales in local currencies were should total 8 percent to 10 percent in a period of 36 months. held several top management positions at up 8 percent. 2013 and 2014, Isla said. — J.D. Ikea, both at company headquarters and in Japan and Holland, and is considered to have key turnaround experience in highly competitive markets. Such experience, industry observers Fashion Experiences Auctioned for Haiyan Relief say, is more than crucial in her new post. Karstadt has been involved in a bumpy turn- James: Beyond Fashion” exhibit at the Institute at around process since the department store By KARYN MONGET the Metropolitan Museum of Art and lunch in the trustees group filed for bankruptcy in 2009. Investor dining room. Nicolas Berggruen acquired the troubled FROM A SOFT RICKY BAG signed by Ralph Lauren to a ■ Two tickets to Diane von Furstenberg’s awards ceremony chain in 2010 and, as Stephan Fanderl, modeling master class from Coco Rocha to internships at at the United Nations on April 4 with a meet-and-greet with chairman of the Karstadt board, acknowl- Proenza Schouler and Prabal Gurung, Fashion Girls for the designer. edged Wednesday, “In a difficult retail envi- Humanity lined up a series of one-of-a-kind items and ■ Two tickets for the couture show in ronment, we’ve not had an easy year.” “experiences” for an online auction benefiting victims of Paris at the end of January and two tickets to the Moncler Sjöstedt said the group’s goal must be to Typhoon Haiyan in the Philippines. Grenoble show during New York in February, find new ways of fulfilling the future wishes The auction will begin at 10 a.m. EST Friday on plus two Moncler . and demands of its customers, building on Charitybuzz.com. ■ A look from VPL by Victoria Bartlett that was worn by the group’s tradition, experience and accom- Fashion Girls for Humanity — formerly Fashion Girls Jennifer Lawrence in “The Hunger Games: Catching Fire.” plishments to date. Calling upon the support for Japan — is a nonprofit organization founded by Kikka ■ Two tickets donated by IMG to the quarterfinals at the of the 83-door chain’s employees, she said, Hanazawa, Julie Gilhart, Miki Higasa and Tomoko Ogura in Australian Tennis Open in January, and two tickets from Condé “We must quickly make Karstadt profitable.” the wake of the devastating 2011 earthquake and tsunami. Nast to the W magazine Golden Globes party in Los Angeles. In September, Berggruen sold a 75.1 The Council of Fashion Designers of America is helping Also taking part are Stella McCartney, Pucci, Marchesa, percent stake in the group’s three pre- with the auction, and proceeds will be donated to Waves for Rick Owens, Rebecca Taylor, Thakoon, Thom Browne, mium houses — KaDeWe in Berlin, Water to provide ground support and relief work to hard- Joseph Altuzarra, Brian Atwood, Maiyet, Irene Neuwirth, Alsterhaus in Hamburg and Öberpollinger hit communities in the Philippines. “Having the auction on Patagonia and Jennifer Meyer Jewelry. in Munich — as well as the 28 Karstadt Charity Buzz is a big deal because it’s international and it’s Fashion Girls for Humanity has raised $180,000 to ben- Sports stores to the group’s biggest land- charity-based,” Higasa said. “This will be the first time we efit relief and rebuilding efforts following Superstorm lord, the Austrian Signa Group. Signa, will be featuring fashion experiences that will include in- Sandy and $415,000 for victims of the earthquake and tsu- in turn, has sold half of that stake to the ternational designers.” nami in Japan. Israeli businessman Beny Steinmetz. Charitybuzz has more than 100,000 active bidders from Additionally, 30 designers and brands have rallied to- Reports suggest that Signa, which al- 110 different countries. The average charity package sells for gether to help FAM (Filipino American Museum) raise ready owns the physical real estate of $4,000. Around half a million unique visitors are expected to re- money for relief efforts by launching an online shop KaDeWe and 16 other Karstadt doors, is view the online auction during its three-week run, Higasa said. through Dec. 23. Organized by Mary Ping and Avena poised to take over another five Karstadt The auction will also offer: Gallagher, all proceeds will benefit Lifesaver, which is pro- sites from the investor group Highstreet. ■ Lunch with Simon Doonan, ’s creative viding jerrycans to victims of last month’s catastrophe. Y-3, The reports also say Highstreet plans to sell ambassador at large; a $500 Barneys gift certificate, and an Rachel Comey and Paul Smith are among the companies another 20 Karstadt store properties by the autographed copy of his book, “The Asylum.” that are offering items with a 20 percent discount. end of the year. ■ A private tour by one of the curators of the “Charles — WITH CONTRIBUTIONS FROM ROSEMARY FEITELBERG 8 WWD THURSDAY, DECEMBER 12, 2013 WWD.COM LVMH, Parsons Link Up Moda Operandi Raises More Funds The recruitment pro- By MARC KARIMZADEH cess, through the CPC, starts By RACHEL STRUGATZ now with courses set to kick NEW YORK — Addressing off in March. English and NEW YORK — Moda Operandi raised more $20 the need for luxury retail- Mandarin-speaking Chinese- million in additional funding to expand its brand ers in the U.S. to better serve Americans with a high school of luxury e-commerce. the growing segment of shop- diploma who are currently The funds will go toward inventory and asset pers visiting from China, as unemployed or working at low purchases, strengthening the overall platform well as boosting the career wages are eligible to apply. from a technology standpoint, investing signifi- advancements of Chinese- Two more sessions are cantly in mobile and a relaunch of modaope- Americans, LVMH Moët planned later on next year. randi.com in the third quarter of next year, said Hennessy Louis Vuitton is “Our aim is to help job- Deborah Nicodemus, who was named chief execu- joining forces with Parsons seekers seize opportunities tive officer in October. The New School for Design in the luxury retail busi- All told, the three-year-old site has raised and the Chinese-American ness,” Chantal Gaemperle, more than $77 million, with the most-recent Modaoperandi.com has raised more than $77 million. Planning Council to launch a LVMH’s group executive round of funding coming from existing investors, new program. vice president, human re- including LVMH Moët Hennessy Louis Vuitton shows make up 60 percent of the business, with LVMH Fundamentals sources and synergies, said. and Condé Nast. the balance coming from in-season items — and in Luxury Retail: A CPC/ “The program’s combined “We are applying the science side and fashion Nicodemus and Santo Domingo think that’s the Parsons Collaboration is classroom and in-store train- side of the business, taking an analytical approach right mix. a new education program ing will develop talent with and grounding ourselves in business practices,” But the pair said some customers also want that seeks to train Chinese- Mandarin-language skills, Nicodemus said of the company’s items that can be worn immedi- Americans, including recent allowing the graduates to ac- plans for the next two fiscal years. ately and so boutiques will re- immigrants and ones from quire the necessary basics as Nicodemus and the firm’s co- main an integral part of the over- underprivileged families, to well as the confidence for a founder, Lauren Santo Domingo, all strategy. ready them for employment successful career within our sat down to talk about the compa- “The trunk show is our DNA; opportunities in the luxury demanding sector. ny’s future at its West SoHo office the runway is our DNA,” Santo retail sector. “This project also ad- on Hudson Street here Tuesday. Domingo said. “We wanted to ser- The program also has dresses a specific need Revenue so far this year is up vice our client as extensively as partial funding from The among luxury retail stores 130 percent and the ceo projected possible. [Online boutiques were] Robin Foundation, to best serve their Chinese- a 78 percent lift in sales for 2014. a clear opportunity to engage her which seeks to keep New speaking customers,” she Sales for Black Friday and Cyber in another channel.” Yorkers out of poverty via added, “while boosting ca- Monday were up 400 percent and Nicodemus added: “The bou- innovative initiatives. reer advancement opportu- October was the site’s strongest tique business didn’t cannibalize Included in the 10-week nities for the community in month ever, which Nicodemus and the trunk show business. What program are classroom ses- New York City.” Santo Domingo attributed to the we found out was that there were sions at Parsons led by the The CPC has worked on fashion show season and a high three groups: the boutique cus- school’s professors, LVMH “connecting new immigrants volume of trunk shows. tomer, the trunk show customer managers and training pro- to new challenges and oppor- Nicodemus took on the Deborah Nicodemus and Lauren and the customer that intersects fessionals, as well as an in- tunities” since 1965, noted of ceo following the departure of Santo Domingo between both.” ternship in one of LVMH’s its executive director David former ceo Áslaug Magnúsdóttir, Moda Operandi has also ac- retail stores. Chen, who expects the new who cofounded the company with Santo Domingo quired Bonfaire, which was founded as an on- The students will learn program to “bring unprece- in February 2011. line preorder destination last year and will now about such topics as fashion dented results in creating new Originally a vehicle for online trunk shows be integrated into the site. Bonfaire ceo Keiron history, consumer trends and career paths for the many un- where consumers could preorder runway looks, McCammon will become Moda Operandi’s chief retail operations, communi- tapped talents in the Chinese- the site launched an online boutique selling in- technology officer, spearheading the growth of cations and teamwork skills. American community.” season items about a year ago. Currently, trunk modaoperandi.com’s technology infrastructure.

SAUNDERS’ NEW KNITS: Jonathan COMING AROUND AGAIN: The FASHION SCOOPS Saunders has lent his eye for Duchess of Cambridge recycled color and print to the British yet another floor-length knitwear label Lyle & Scott, number on Wednesday night creating a capsule collection for the black-tie screening MONCLER PRICING: Moncler’s road show Germany, and raised in Istanbul, the for the brand for fall 2014. of Sir David Attenborough’s ended Wednesday and shares are designer launched his namesake brand The collection will make new 3-D film at the Natural to be priced at 10.20 euros each, or in 2009 and has been showing in Milan its debut Jan. 6 alongside History Museum in London. $14.07 at current exchange, according in recent years. Saunders’ men’s collection The duchess, who attended to the company. The shares were The provisional calendar for Men’s at the London Collections: the event with Prince oversubscribed 31 times, and the Fashion Week in Paris, which runs Jan. Men shows. The 32-piece William, wore a black lace outerwear firm is now valued at over 2 15 to 19, has Benan down for a show knitwear collection features Temperley London to billion euros, or $2.8 billion. The brand’s on the last day, joining such names designs such as bold intarsia the screening of “Natural first day of trading is set for Monday on as Lanvin, Thom Browne and Saint knits, roll-neck in History Museum Alive 3-D,” a the Milan Stock Exchange. Laurent. — MILES SOCHA contrasting color panels and IMAGES high-tech TV production that — CYNTHIA MARTENS pique polo in graphic shows Attenborough roaming BAIN’S BUY: Extreme weather prints, in a color palette the museum at night while

SHOPPING NIGHT: Christmas came early for outerwear firm Canada Goose of green, red, clementine ASSOCIATION the prehistoric creatures on several starlets when clothing has agreed to sell and blue. The lineup also display come to life. label Parker threw a gift-giving FOR MORE a majority stake to includes a Harrington The duchess, who is party on Tuesday evening at SCOOPS, SEE private equity firm jacket and four a patron of the museum, WIRE/PRESS the Beverly Hills home of Ashlee Bain Capital for designs, such as a had worn the dress to the Margolis. Those stopping by for WWD.com. an undisclosed saddle shoe in premiere of “War Horse” in cocktails and treats included amount. Dani contrasting colors. MOK/PA The Duchess of Leicester Square last year. YUI

Jamie King, Kate Mara, Rashida Jones Reiss will remain Prices for the BY Cambridge in — SAMANTHA CONTI and Marla Sokoloff. There might not have president and chief collection start at 26 Temperley London. been a dressing room, but Mena Suvari and executive officer of the pounds, or $43, for PHOTO COURT CLOTHIER: Joseph Mandy Moore were among those unofficially Toronto-based firm. He a T- and run to Abboud will continue its modeling the pieces for guests. will continue to own a 102 pounds, or $168, association as the official Late arrival Constance Zimmer, who had “significant minority stake” for the Harrington jacket. supplier to the National Basketball come from the set of her new comedy in the company. Lyle & Scott said Coaches Association and will dress the “The Fishers,” was keeping her lips Reiss said of both its new Saunders’ use of color, head coaches of the National Basketball sealed on the second season of “House investment partner and the pattern and graphic motifs Association for the 2013-14 season. This of Cards.” “All I can say is it’s very 55-year old firm, “Bain Capital “has a clear relationship with is the brand’s fifth season in that role, eventful,” she said. has a long and impressive Lyle & Scott’s 1960s golfing but the first since it changed hands and Elsewhere, Ahna O’Reilly and pal track record of successfully heritage,” referring to the was sold to Men’s Wearhouse. Gillian Jacobs were scoping out the scene. investing in beloved Canadian A Jonathan Saunders patterned sweaters that put the “Pat Riley first set the standard for “We were eyeing the setup outside,” companies, and we are sweater. 140-year-old brand on the map, courtside style and the NBA coaches said O’Reilly of the bar and manicure [pleased] to bring them on adding that, like Lyle & Scott, have stepped up their fashion game ever station by the pool, where temperatures board. They’re the right partner with the Saunders hails from Scotland. since, bringing their unique style to the remained in the 70s thanks to some well- right resources and people to help us Tapping Saunders to design a game of basketball. Speaking personally, placed heat lamps. — MARCY MEDINA reach our potential.” collection isn’t the only fashionable not only as a designer but also as a huge Ryan Cotton, principal at Bain, said, move the label is making. Last year, NBA fan, I am [pleased] and honored CHANGING PLACES: Umit Benan, winner “We are very excited to employ our the brand appointed Carolyn Massey, a to wardrobe these talented coaches in of the inaugural men’s wear version global resources and experience to help young British men’s wear designer who our made in America, Joseph Abboud of Italy’s Who’s on Next award for the team continue to build the business has shown her collections at London suits,” said Joseph Abboud, chief creative emerging designers, is to show his fall and fuel an even more successful Fashion Week in the past, as head of director of The Men’s Wearhouse Inc. collection in Paris. Born in Stuttgart, future.” — VICKI M. YOUNG design for the label. — NINA JONES — JEAN E. PALMIERI Man of the Week plus Billy the Kid Bergdorf Goodman unveiled New York’s own Billy Joel had its Berluti boutique, for a big week, and displayed which it has the U.S. the style to match. Page MW4 exclusive. Page MW4

December 12, 2013

Bridge and Tunnel Brooklyn Draws Manufacturing Initiatives Fashion brands and real estate developers boost production in Williamsburg, Sunset Park.

by DAVID LIPKE

® NEW YORK — On a cold Monday morn- THEY ARE WEARING ing in Bushwick, Brooklyn, a handful of seamstresses bent over their machines in a small, tidy apparel factory sewing up a run of jeans. In an adjacent office, the facility’s owners, Raul Arevalo and Bradley Schmidt, ate pizza for lunch delivered from nearby Roberta’s, the local culinary gem in the fast- gentrifying neighborhood. Arevalo and Schmidt design and operate a men’s wear label called Cadet, with three stores in Williamsburg, Brooklyn, as well as in the East Village and Meatpacking District in Manhattan. Central to their business plan was opening this production facility in Brooklyn, which manufactures all of their garments while also producing for clients like Kenneth Cole, Nautica and a number of independent New York designers. “We have a nice space that is bright and airy and open. To establish something like this in Manhattan would be outra- geously expensive,” said Arevalo of the 3,500-square-foot space at 56 Bogart Street, a building mostly occupied by artists’ stu- Miami Mix dios and galleries. The facility, which opened in December 2011, employs nine The ban on white pants after Labor Day didn’t apply sewers, four pressers and trimmers and ad- ditional cutters and patternmakers. in the sultry climes of Miami during Art Basel, The Cadet factory is one of the newest ap- parel manufacturing facilities in a borough that is experiencing a spate of activity in where fashion folk — both famous and not-so- fashion production. Drawn to its lower costs and proximity to Manhattan, brand owners, famous — partied in vivid prints, festive colors and factory operators and real estate developers are turning New York’s most populous bor- oversize silhouettes. For more, see WWD.com. ough — already a magnet for trend-conscious consumers — into a growing hub for apparel and accessories manufacturing. The total number of apparel manufac- turing establishments in Brooklyn inched up to 269 in 2012, up from 259 in 2011 and 261 in 2010, according to New York State Department of Labor statistics. (The num- ber is down from the 2008 figure of 319.) Employment in apparel manufacturing in Brooklyn reached 3,587 jobs in 2012, up from 3,151 in 2011 and 2,905 in 2010. (Again, the number is down from 3,684 in 2008.) Among the most ambitious plans for Brooklyn is Manufacture New York’s blue- print for establishing a 160,000-square-foot and

L manufacturing complex for fashion com- panies in the Liberty View Industrial Plaza building on the Sunset Park waterfront. Bob Bland, founder of Manufacture New York, is Lexie More aiming to create a home for about 30 compa- nies that will produce their lines on-site, in

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w12b001a;8.indd 1 12/11/13 8:19 PM 12112013202003 MW2 WWD THURSDAY, DECEMBER 12, 2013 Men’s Week Fashion Manufacturers Grow in Brooklyn

{Continued from page MW1} Navy Yard for eight years and was the Brooklyn Navy Yard and The spaces ranging from 1,000 to 20,000 recruited to Industry City this past Emerging Designer. square feet. Her plan is to bring an summer by its new investors to To help continue the revitaliza- array of different businesses relat- oversee its transformation. tion of the Sunset Park area and ed to fashion manufacturing, such Among the current fashion make Industry City a more attrac- as screen printers, label makers tenants at Industry City are Rag tive place to work, Kimball has a and packing and shipping firms, & Bone, Aston Leather, That’s My list of improvements he hopes the Brooklyn Industries bags. to create an integrated supply and Girl, Double Take and new administration of Mayor-elect services chain in a single building. Lana Stepul. The companies have Bill de Blasio will implement. “The of price point. I believe that local Bland has an enthusiastic back- spaces that range in size from 1,000 roads in the area haven’t been re- manufacturing is the wave of the er in Salmar Properties, which ac- to 20,000 square feet, said Kimball. built in decades and there are storm future and I really believe in it, but quired the long-empty 1.2 million- The 13,000-square-foot Rag & water runoff issues. We would love it has to happen holistically within square-foot building in 2011 from Bone space houses the company’s to see a ferry service stop here. the marketplace.” the city for $10 million and has in-house custom fabrication team, We’d love to see the Brooklyn For its leather bags, Brooklyn spent another $70 million reno- which constructs tables, shelving, Greenway, which is the bike and Industries outsources production vating and upgrading the interi- mirrors, frames and benches for the pedestrian path, extended here. to another Brooklyn-based man- The Industry City ors to meet 2008 code, the highest brand’s retail stores. The division And we want to see the pedestrian ufacturer who recently moved complex in Sunset Park. standard in industrial buildings. moved into Industry City in July 2011. experience improved, and made from Manhattan to the outer bor- “Every elevator, toilet and wire is “Where there is regular and safer, under the elevated Brooklyn- ough. “One of the challenges with new. There’s central air condition- intense demand is for the small Expressway,” he rattled off. making bags yourself is that’s particular strength in the food sec- ing,” explained Marvin Schein, a spaces, with smaller creative types In the nearby Brooklyn Navy hard to find sewers for leather tor. To help spur that upward trend, co-owner of Salmar Properties. doing design and prototyping, and, Yard area, Brooklyn Industries and bags,” noted Funk. a new initiative called the Fashion Bland signed a letter of intent in some cases, sample and produc- makes bags and some T-shirts The company makes about 15 Manufacturing Initiative was in July to lease an entire floor in tion lines in them,” said Kimball. He and cut-and-sew knits at its Hall percent of its products in Brooklyn, launched in September, spearhead- the eight-floor building. She is pointed out that the Brooklyn Navy Street warehouse and production with the rest manufactured in ed by Theory’s Andrew Rosen and currently in the process of secur- Yard is fully occupied — Gilt oper- facility. Its brand name practi- China, Peru and other areas of the Council of Fashion Designers ing funding for the high-concept ates a warehouse and photo studio cally requires it to produce in the the U.S., including Los Angeles of America, with support from project from New York’s Economic there — with a long waiting list of hipster-beloved borough but there and Pennsylvania. “Prices coming the city’s Economic Development Development Corp., along with companies seeking space there. are challenges — particularly the out of China are getting more and Corp. and Ralph Lauren. The pro- other sources. She and Schein are Additionally, there are very few high-cost of making products any- more expensive, especially as our gram provides grants to factories confident the funding will come available vacancies in the industrial where in New York City. unit counts are not that high, so throughout the five boroughs that through. “A project of this size district in DUMBO, aka Down Under The company’s products that domestic manufacturing is becom- modernize their equipment and needs to be a public-private part- the Manhattan Bridge Overpass. In are made in Brooklyn bear a spe- ing more attractive,” said Funk. boost worker training. nership,” explained Bland. “At the contrast, Industry City is only 67 per- cial hangtag, so consumers are “We can’t and don’t want to go to “Although it is widely believed time we receive that funding, the cent occupied at this time. aware of their origin — although Indonesia or India; we don’t have that New York City’s manufac- build-out will commence,” which is “That occupancy rate is going Funk isn’t sure that it actually in- the units. We are looking to bring turing sector has disappeared, forecast to take six to eight months. up rapidly, with the new manage- creases sales. “We want and need 100 percent of our T-shirt produc- it in fact has not….It has simply “Brooklyn has become very ment here rehabbing the spaces. to pay our sewers a living wage, so tion to Pennsylvania or Brooklyn. changed form. While our city is popular but there really isn’t a good We definitely have more fashion that means that product is priced at Yo u are paying more for labor but known for skyscrapers, behind the place to manufacture,” said Schein. companies seeking space. I think a premium. The question is, ‘How less for shipping and duties.” closed warehouse doors abundant “Everything is old and rundown and it’s driven by people’s interest in do you have that conversation with Throughout New York and the in manufacturing districts, you can the infrastructure is 100 years old. local and authentic goods, particu- consumers?’” pondered Lexy Funk, larger U.S., the macroeconom- find manufacturers of chocolate, There’s a need for modern space.” larly Brooklyn-branded goods. It’s cofounder and ceo of Brooklyn ics of global manufacturing have men’s clothing, home furniture Adjacent to Liberty View something that is really growing,” Industries, which operates 17 drastically shrunk the manufac- and specialty drinks,” wrote the Industrial Center is another group said Kimball. stores in New York, Chicago and turing job base. The total number report’s authors. “The profile of of 16 buildings zoned for manufac- He and his team are striving to Portland, Ore. “There’s so much of manufacturing jobs in New manufacturers in New York City turing, collectively called Industry move away from storage and ware- pressure from the market in terms York City across all industries has has changed; once dominated by halved from 150,000 in 2001 to just large-scale plants serving the U.S. over 75,000 in 2012, according market, New York City’s cur- to an October report by the rent manufacturing sector is New York City Economic built on local demand and Development Corp. That an export-worthy reputation. pace of decline exceeds na- Small, technology-driven tional statistics, which show firms leverage strong ties to the U.S. lost 21.7 percent of industries headquartered in all manufacturing jobs New York City, such as from 2002 to 2012. theater, architecture, On an upbeat note, design, fashion and those job losses in advertising.” New York may have That point is styl- bottomed out: from ishly illustrated 2011 to 2013, the at the Artemas number of manu- Quibble workshop The renovated Liberty facturing jobs in and production View Industrial Plaza. the city actually facility in Red increased, with A fall look Hook, Brooklyn. from Cadet. There, owners and City, comprising 6 million square house tenants to high-employment designers Jason feet of space. manufacturing tenants centered Ross and Natasha In August, a group of investors — on the innovation economy. “The Chekoudjian craft Jamestown Properties, Belvedere main measurement of that is in small runs of metal Capital and Angelo, Gordon & Co. jobs. About 2,400 people work here jewelry and leather — acquired a 50 percent stake in today and we hope to make it over goods in three rooms the properties from the Schron and 10,000 people [by 2020],” he noted. of about 1,200 square Fruchthandler families with the To raise its fashion profile, feet total. goal of upgrading the facilities and Industry City recently hosted a “My goal is to never luring technology, fashion and other 22,000-square-foot pop-up mar- create something that advanced manufacturing companies ketplace, called Fashion on the someone else can get to the massive complex. The new Factory Floor, which was open to elsewhere,” said Ross, partners plan to invest about $100 the public and featured 50 inde- showing a visitor how million in modernizing the build- pendent New York City designers. he hand made 2,500 IANNACCONE ings, which are over 100 years old The event took place on the two metal grommets, in- and lacking amenities. weekends following Thanksgiving corporating them into “Design and fashion manufac- and was presented by a range of about 150 belts. Ross THOMAS turing is one of our target sectors organizations with an interest in cut a tube of metal BY and something that is growing,” promoting local fashion, includ- using a band saw and said Andrew Kimball, chief ex- ing Made in NYC, Con Edison, the Raul Arevalo and hammered the grom- PHOTOS ecutive officer of Industry City. He Citi Foundation, Manufacture New Bradley Schmidt met pieces into shape,

was the president of the Brooklyn York, Save the Garment Center, using an angle grinder PORTRAIT Men’s Week WWD THURSDAY, DECEMBER 12, 2013 MW3

14 years, growing as their client has estate prices in the once-sleepy Bone, Public School and Ovadia & multiplied its store count. Dynotex, area have made the four-floor Sons, in addition to individual cli- which employs about 20 people in a building the tailored clothing com- ents of its custom business. For 7,000-square-foot space, also works pany occupies — which dates back about $1,000, Gilt customers can with independent designers, such over 100 years — very valuable. order off-the-rack suits online. as M. Patmos and fledgling labels “If we didn’t own this building, About 11 hours of handwork just starting out. we wouldn’t be able to be here,” goes into each jacket and two hours “A lot of designers need a lot said Jay Greenfield, a son of Martin into each pair of pants, with about of guidance. They don’t know very Greenfield and a partner in the 100 people handling each garment much about technical design,” said business. “Our landlord could have between their various stations. “We Alan Ng, owner of Dynotex. rented it out or sold it for more have people who specialize in each Ng said Greenpoint offers very money than a clothing company small area of production — there’s affordable space for manufacturing, could afford to pay for this space. a person who sews breast welts all at about $7 a square foot, compared If we were focused on money, we day long and he becomes very pro- to $10 a square foot in neighboring would have kicked ourselves out. ficient,” said Tod Greenfield, the Long Island City. The drawback is It’s pressure that is on us on a daily younger son of Martin Greenfield, a difficult commute for some work- basis — brokers and realtors and of the assembly-line approach. ers, as the area is serviced solely by developers call us every single day. “This allows us to produce quantity the G subway line. But our focus is on the clothing.” and yet maintain the hand tailoring. The growing popularity of The Martin Greenfield com- That is the whole key.” Brooklyn among residents and pany employs 120 people, who The average worker in the plant businesses alike is increasing real produce 12,000 to 15,000 hand- has been with Martin Greenfield estate prices in many areas of the nouveau-hip borough. “Years back, the key concern was crime — it was a terribly crime ridden area. Now, we have the op- posite problem of crime, which is astronomic real estate value, which makes it difficult for busi- nesses to move here and expand,” to polish them. A flame and a water Converse. “We thought the best way said Leah Archibald, executive bath were used to anneal the pieces, to have total control over quality director of the East Williamsburg making them more workable, several and fit was to have our own produc- Valley Industrial Development times through the process. tion. It also allows us to react im- Corp., a trade group for the area. “We develop our own methods of mediately — if we have a shirt and Archibald said a key prior- production. No one is teaching me it sells out, we can remake the shirt ity for her was to urge the new de how to do anything,” said Ross. “I do and have it in stores in two weeks. Blasio administration to refine my own research and develop tech- If we did our production overseas, the zoning rules in manufacturing niques using the scientific method we would never be able to do that.” areas that currently allow busi- and trial. I’m often wrong and I can There are some hurdles to nesses like hotels and nightclubs curate through my mistakes.” working out of Brooklyn, especial- to operate within them. “They The duo has designed and sup- ly its distance from the Garment don’t even need a Tod, Martin and plied Donna Karan with jewelry, District in Manhattan. The supply special permit. What FOR MORE IMAGES, SEE Jay Greenfield. such as leather cuffs inlaid with chain of fabric and trim suppli- we are hoping to do metal work, for 10 seasons. They ers — as well as repair facilities is examine land use WWD.com/ also sell their own line to high-end for broken machinery — is cen- policy and rethink menswear-news. made suits a year, for 18 years. “The majority of our specialty stores like ABC Home, tered in Manhattan. “There are so whether hotels and for a clientele that workers came as immigrants with Urban Zen and Cristina Nicoletti. many services that are based in the nightclubs are the right use in has included Presidents skills and were able to put their Unfinished leather hung from Garment District that support gar- manufacturing zones,” she ex- Obama and Clinton, Mayor kids through college working here. the wall, and in a separate room two ment production,” said Schmidt. plained. “When these things move Michael Bloomberg, Colin Powell That’s what my father did,” said workers sat with masks over their Cadet has grown at a brisk clip in, it really changes the character and Police Commissioner Ray Tod Greenfield. faces as they dipped cloths into a since launching last year, opening of the neighborhood in a rapid, im- Kelly, among a host of other lumi- Martin Greenfield himself — dye, rubbing it onto belts. In the ad- its three stores in rapid succession. mediate and permanent way. If we naries. Also on the client list are who is 85 and a survivor of the jacent metal-working room, a large The company will launch whole- want to preserve these pockets of film and television productions, Auschwitz and Buchenwald con- anvil dominated the center, with an sale sales for the first time for fall creative production in the city, we including shows like “Boardwalk centration camps — is on the fac- array of hammers hung around it, 2014 and will participate in its first need to do something about it.” Empire,” “The Blacklist” and Baz tory floor every day. “I like what I ready for use. “I need three more trade show in January. One of the most vener- Luhrmann’s recent big-screen re- do and I think I do it well. That’s anvils and then I’ll be on my way to In Greenpoint, the Dynotex fac- able clothing manufacturers in make of “The Great Gatsby.” the place I feel at home,” he said. being happy,” said Ross. tory has been manufacturing wom- Brooklyn — or anywhere, really — Greenfield’s bread-and-butter is “The styles and the designs have Also in Red Hook is the exten- en’s , skirts, pants and blaz- is Martin Greenfield Clothiers, lo- making suits for brands like Brooks changed, but our methods of mak- sive manufacturing facility for the ers for the J. McLaughlin brand for cated in Bushwick. The rising real Brothers, Band of Outsiders, Rag & ing clothing have not changed.” architectural hardware maker E.R. Butler & Co. Taking up half of an entire block, the 130,000-square- foot plant in five interconnected buildings mostly turns out luxury doorknobs, hinges, finials, es- cutcheons and the like. It also does a small, complementary business in fashion products like bejeweled accessories for Kiki de For more career opportunities log on to WWDCareers.com. Montparnasse and silver and gold jewelry for Ted Muehling. The company has been in the neighborhood since 1997 and owner Rhett Butler has seen the area evolve over the years. “We moved [from Manhattan] because we needed more space. People told us we’d have trouble as [Red Hook] was a bad neighborhood, with mug- gings,” remembered Butler. “In the last decade, a real community has built up, with great coffee and lunch places. It’s still pretty much off the grid, which is one of its strengths, but it’s become quite an awesome place to be.” At the Cadet facility in Bushwick, the owners counted their local production prowess as central to their business plan. “Working in the industry for so many years, I’ve worked with many factories and always had issues with quality and fit,” said Arevalo, who worked as a technical de- signer for 20 years at companies Natasha Chekoudjian (800) 423-3314, or email [email protected] including Abercrombie & Fitch, and Jason Ross Club Monaco, American Eagle and MW4 WWD THURSDAY, DECEMBER 12, 2013 Men’s Week

tition. “We think it’s complementary,” he said. “Many of our partners have their own Bergdorf’s Adds Berluti Shop stores.” He pointed in particular to , who opened his own store and also signed up with Bergdorf as his exclusive by JEAN E. PALMIERI wholesale partner. The Berluti shop includes The design of the Berluti shop at BERGDORF GOODMAN MEN has the parquet flooring, bronze glass Bergdorf ’s is innovative yet remains true to wholesale exclusive for Berluti in the U.S., and silk carpets. the tradition of the brand, Schulman said, and it’s crowing about it. noting that it includes parquet flooring, Earlier this week, the upscale retailer walls made of the same Venezia leather used unveiled a boutique for the LVMH Moët by the French brand in its line, bronze glass Hennessy Louis Vuitton-owned luxury panels and silk carpets. men’s brand that is being reinvented by Schulman declined to reveal the square Antoine Arnault, who is chief executive of- footage of the shop but said it is “one of the ficer of Berluti and last week added the title most prominent men’s shops” on the second of chairman of Loro Piana, which the French floor and includes Berluti’s ready-to-wear, group acquired in July. accessories and shoes. There’s also an “out- The completion of the shop on Bergdorf post” just for the shoes on the main floor, he Goodman Men’s second floor is the latest move noted, adjacent to the company’s newly in- in a two-year renovation at the three-floor, stalled shoe library. The leather goods are 41,500-square-foot store, the first comprehen- also offered within Bergdorf Men’s classifi- sive revamp since it opened in 1990. Still to cation leather goods area. come is a new Ralph Lauren shop for Black Schulman said that in terms of the cus- and Purple Label merchandise that is expect- tomer response to Bergdorf ’s recent reno- ed to be completed later this month, followed vation of the men’s store, initial results are by the renovation of the shirt and tie area and JOHN AQUINO positive. “We’re really delighted with both the addition of a men’s bar in the spring. the sales and the anecdotal comments we’ve “But the big news right now is Berluti,” heard,” he said. “The strongest results have PHOTO BY said Joshua Schulman, Bergdorf ’s presi- come from leather goods, tailored clothing dent. “We’re incredibly excited about their Berluti, which started as a artisanal shoe small store on Madison Avenue and Berluti and Brunello Cucinelli. It’s hard to measure, positioning of Berluti as a true luxury heri- brand and now offers a complete lifestyle is currently building a flagship across the but we saw a very noticeable uptick in traffic tage brand for an international, jet-set cus- collection, “dovetails with our positioning.” street from Barneys New York on 61st Street. in the men’s store right after the renovation tomer — and we have it exclusively.” He said The line is also carried in the company’s But Schulman doesn’t view that as compe- and expansion.”

Men’s casual MCS Label to Focus on Men’s Wear in Asia is growing and these brands will be able to rely on shared services, she explained. By LUISA ZARGANI fordable luxury labels in those with compelling stories that can capital to look internationally,” While Gasparini noted that regions, said McCullar. be important to emerging mar- said McCullar. “This was an it’s still early since it has been MILAN — After a three-year re- While financial details of ket consumers,” said McCullar. opportunistic rather than stra- only four weeks since the deal, branding program and under a the transaction were not dis- ISC is based in Trebaseleghe, tegic move. This portfolio is so the executive said that Enrico new owner, the MCS label will closed, McCuller said MCS had near Padova, Italy, but differentiated, each brand is so Acciai will continue to be gen- enter its next phase of develop- been “slipping in the red” in Gasparini said it will be mov- different in personality, there is eral manager and group chief ment in 2014. 2012, due to the general econo- ing to new premises in Mestre, little overlap in distribution; it’s executive officer of ICS. Emerisque Brands, which in my and the brand’s exposure to in the country’s Veneto region affordable luxury, which is very Founded in 2004, other April took control of the label the suffering Italian wholesale — a plan that was in the cards important in emerging markets. Emerisque investments in- formerly known as Marlboro channel. Sales now total 100 before the sale, he said. There is this white space be- clude Hickey Freeman, Hart Classics from the Permira fund, million euros, or $137 million “We’ve been looking to in- tween luxury and fast fashion, Schaffner Marx, Bobby Jones, is discontinuing the company’s at current exchange. Over the vest in Italy for some time, in especially in Asia where they Jack Nicklaus, Exclusively women’s division and focusing summer, the new owners ne- medium-sized companies that love international brands, and Misook, Christopher Blue, Palm on men’s wear. The brand is re- gotiated with trade unions and did not have the expertise or the they need to build a wardrobe.” Beach, Sansabelt and Monarchy. turning to its original American eventually had to let go of 60 West rugged lifestyle image and workers. “We knew we had to further strengthening its ties go through a restructuring pro- to Italian design and fabrics cess, looking at a turnaround Man of with the help of its first head from a wholesale-driven busi- THE WEEK BILLY JOEL: A- of design, Alessandro Crosato, ness, but we think like a re- who has worked with the likes tailer,” said McCullar, noting of sportswear brand Sergio that this was Emerisque’s first It’s time to apply a little His trademark goatee Tacchini. While the company investment in Italy, and that for cover-up to minimize the enhances his jawline and previously relied on a group of this reason it was especially Uncle Fester look. strengthens his features. outside designers, it will now important “to be respectful of have an in-house team. local processes.” “We are bringing back the sil- The company now em- houette of the rider, we have the ploys 350 people globally. Sometimes a wider bow The James Bond pocket global rights to that logo, which Headquarters will be moved tie is more elegant; this square reflects his is indelible and very visible,” from Valdagno, near Vicenza, one is too narrow. knowledge of men’s wear said Betsy McCullar, Emerisque to another site near that Italian and looks sharp. principal. “The combination of city. “It’s important to stay in the American West inspiration the region and support it,” said The obviously made-to- The contrasting with the refinement of Italian Gasparini, adding that the col- measure jacket is the texture of the silk design makes for a very tasty lections are produced in Europe perfect choice for someone and the brand. We are also planning on and the Far East. of his diminutive stature pants elevates the a fuller product assortment for McCullar said that (5 foot, 5 inches). chic factor. 2014 with new categories, such Emerisque’s experience in re- as underwear and swimwear, tail distribution will help boost developing our core casual business globally. “Our phi- sportswear collections.” losophy is to export the brand Massimo Gasparini, presi- as much as possible,” she said. The legendary New York dent of MCS, said men’s was in- MCS is available at 1,000 points singer had a big week, troduced by the then-owners of of sale including 150 retail The straight, the license, the Marzotto fam- units. Gasparini said Emerisque receiving a Kennedy Center clean cut of the pants ily, in 1987 and that “it was al- is already actively selling the works well, but they’re ways difficult to find the proper brand in markets such as the award and signing on as overpowered by the DNA for women’s, which did U.S., China and South America. Madison Square Garden’s jacket. However, he’s not add real value to custom- In November, Emerisque doing his best with what ers.” The women’s line will be also took control of Industries first entertainment franchise. he has to work with. discontinued starting with the Sportswear Company SpA from fall 2014 season. Moncler SpA. The sportswear He may be dressed more like Emerisque is leveraging its division includes brands Marina He could have gone for retail expertise to boost distri- Yachting, Henry Cotton’s, an uptown boy than a piano a patent leather shoe bution of the brand in emerg- Coast Weber & Ahaus and the man, but it’s very appropriate to add some panache to ing markets including the 18CRR81 Cerruti license. the ensemble. After all, Middle East, Greater Russia, “We are a growth-oriented in- for the occasion. he is a showman. AP PHOTO/KEVIN WOLF Greater China and India, in ternational investor, looking for

light of the “appetite” for af- brands that have global appeal PHOTO BY