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The United States Of SAAB’S BIG THE BATTLE FOR PUSH DOWNTOWN ELIE SAAB IS AMONG A WAVE OF LEBANESE DESIGNERS RAISING THEIR PROFILES IN THE WESTFIELD WORLD TRADE CENTER UNVEILS U.S. AND ABROAD. PAGE 8 ITS FIRST LIST OF TENANTS AT LAST. PAGE 3 WWDMONDAY, NOVEMBER 17, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY THE UNITED STATES OF LUXURY By MILES SOCHA and SAMANTHA CONTI 16 percent; Hermès’ jumped 16.9 percent at constant exchange, and Gucci’s increased 8 percent at its own stores. AMERICA THE BEAUTIFUL. The data are unequivocal: In the third quarter, the U.S. That seems to be the song luxury brands are singing these days. notched 3.5 percent growth in gross domestic product, With the Chinese market cooling and Europe in the doldrums, demonstrating broad-based improvement across the economy. the U.S. is looking more like the luxury El Dorado it used to The most recent study by Bain & Co. and Fondazione be. Simply scanning the third-quarter, or nine-month, results of Altagamma, the Italian luxury goods association, confi rmed the leading luxury brands is proof of the market’s buoyancy: Saint Americas as a key growth driver, accounting for 32 percent of a Laurent’s North American sales leaped 47 percent in the third global market for personal luxury goods estimated at 223 billion quarter; Moncler’s were up 32 percent; Brunello Cucinelli’s rose SEE PAGE 4 2 WWD MONDAY, NOVEMBER 17, 2014 WWD.COM Kors’ Instagram Adds ‘Buy’ THE BRIEFING BOX most social engagement to date one of the fi rst brands to imple- IN TODAY’S WWD By RACHEL STRUGATZ — handbags, such as the Dillon ment an initiative like this. The satchel and the Elsie box clutch; program is the brand’s attempt NEW YORK — Michael Kors is watches, such as the Kerry and to see an ROI from Instagram, taking its massive Instagram fol- Colette offerings; accessories and which is arguably its most power- Lord & Taylor’s windows were designed as glimpses lowing — the company has 3.1 shoes — will make up the major- ful social channel. into other worlds. For more, see page 6 and WWD.com. million fans and counting — and ity of items for sale. Although it’s beginning in banking that engagement on the Asked why Kors has chosen to time for the holidays, social platform will translate into sales. base a shopping program around shopping won’t be a one-off thing Today will see the launch of a platform that inherently isn’t for Kors. The brand will incorpo- #InstaKors, a program that aims built for shopping —Facebook rate this technology into its over- to bridge the brand’s Instagram and Twitter both have buying op- all strategy, calling it an “always- and e-commerce channels. tions right on their platforms — on” service going forward. This is how it works: When the brand had a simple reason: The Kors’ program is the visitors sign up on michael- Instagram is where it sees the brand’s take on the technol- kors.com using their e-mail highest year-over-year growth ogy offered by RewardStyle’s and Instagram handle, they re- and engagement. Facebook and LIKEtoKNOW.it, the tool that ceive e-mails with direct links Twitter are instrumental in in- also sends users an e-mail fea- to purchase any items they have spiring fans and helping in the turing a link to buy a product “liked” in the Instagram posts. shopping process, but fi nding a that was triggered by a “like” on Any post enabled with the shop- way to “shop” Instagram was a Instagram. The feature is popu- ping feature will be hashtagged necessity, the company said. lar, with access to 3,500 retail- JOHN AQUINO PHOTO BY #InstaKors, which, over the With the social selling space ers and brands. To date, 70,000 course of the holiday season, still looming as a black box of Instagrams have been published will comprise 60 products span- sorts for brands — Instagram on LIKEtoKNOW.it, with more With the Chinese market cooling and Europe in the ning 20 shoppable Instagrams. has yet to incorporate the ability than 40 million e-mails sent to doldrums, the U.S. is looking more like the luxury El Dorado it Products that have garnered the to link out from a post — Kors is fans’ in-boxes. used to be. PAGE 1 Are luxury prices killing the goose that laid the golden egg? Not necessarily. PAGE 5 Joe’s Jeans Falls Out of Loan Compliance Italia Independent is going American. The eyewear agreement as of Sept. 30. When both lenders and seeking amend- company today will open its fi rst U.S. stand-alone store in By ARNOLD J. KARR Joe’s reported results for its ments to existing agreements New York’s SoHo neighborhood. PAGE 6 2: Kors social; third quarter and nine months in and waivers on the dual defaults. SHARES OF JOE’S Jeans Inc. October, the company said it was If unsuccessful, payment terms Lord & Taylor and Barneys New York began the fl ood of declined 21.2 percent to close in compliance with all covenant could accelerate, which, Joe’s holiday window unveilings with events that refl ected the Joe's; Nautica at 75 cents in Nasdaq trading, provisions of the Garrison loan said, would have “a material ad- two retailers’ distinctly different personalities. PAGE 6 after the company reported that as of Aug. 31. verse effect on our liquidity, fi - it had fallen out of compliance nancial condition and results of A growing number of celebrities are donning fashions with the profit requirements of its operations and could cause us to by Lebanese designers, who are taking the top spots as Garrison Loan Agency term loan become bankrupt or insolvent if America’s new red-carpet darlings. PAGE 8 and was seeking waivers and ad- not resolved.” justments. Joe’s acquired Hudson An exhibition in London showcases works by the British The company said in a fi ling 21.2% Jeans for about $97.6 million painter Brian Stonehouse, who served as a spy during World with the Securities and Exchange in October 2013, and a portion War II and later became a fashion illustrator. PAGE 10 Commission that, in the 12 DECLINE IN JOE’S JEANS of the proceeds came from the months ended Sept. 30, it had Garrison loan. SHARE PRICE ON FRIDAY. Drawing a good crowd has never been an issue for Stella failed to meet the covenants for Joe’s net income for the fi rst McCartney, as many gathered Thursday at Alice Tully Hall to earnings before interest, taxes, nine months of the current fi s- see her honored with the Women’s Leadership Award. PAGE 10 depreciation and amortization cal year was $437,000 versus a of the term loan reached with The default event automati- net loss of $5.5 million in the Garrison one year earlier. cally put Joe’s in violation of its fi rst three quarters of 2013. The Shares of Perry Ellis International Inc. rose nearly 2.8 With the default, Garrison de- revolving credit and factoring loss, however, included an $8.7 percent to $23.58 as talks about a possible sale manded payment of outstanding facility with CIT Commercial million pretax charge to cover resurfaced Friday. PAGE 11 interest, and the interest rate on Services. Under that agreement, a onetime payment of $9.2 mil- the fi nancing was elevated to 14 there is $33.9 million outstanding lion to creative director Joe The Association of Magazine Media is plumbing the depths percent from 12 percent. and $13.7 million available under Dahan to replace earn-out al- of social media and how it relates to 166 magazine brands There was $59.9 million out- the factoring facility. lowances tied to the company’s via a ranking system. PAGE 11 standing under the existing Joe’s said it is negotiating with gross profi t. According to a motion fi led in New York federal court, lawyers for Condé Nast interns have settled on the princely sum of almost $5.9 million. PAGE 11 Nautica Names New Head of Men’s ON WWD.COM future evolution of the brand,” but declined to pro- By JEAN E. PALMIERI vide more detail at this point. Nautica had showed LORD & TAYLOR HOLIDAY WINDOWS: Lord & Taylor Black Sail on the runway during New York Fashion unveiled its holiday windows on Thursday night. For more, CHRIS COX IS sailing off into the sunset. Week, but took a break last season. see WWD.com. On Friday, Cox resigned as vice president of de- Cox joined Nautica in 2008 as vice president of sign and creative for Nautica, effective immediate- men’s design and was promoted nine months later ly, and the brand named Steve McSween to the new to vice president of design and creative. In addi- role of vice president of global design for men’s. tion to the fl agship Nautica sportswear line, he FOLLOW US ON SOCIAL MEDIA McSween, a 20-year veteran of LF USA, Gap and also designed Black Sail. Before joining Nautica, @ WWD.com/social Club Monaco, starts today. Cox was creative director and senior vice presi- McSween will oversee the global men’s sports- dent of design for Victorinox Swiss Army for two TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS wear and sleepwear businesses as well as all men’s years and had been with Tommy Hilfi ger for nine [email protected], USING THE INDIVIDUAL’S NAME.
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