PLUS: ON THE FRIZZ: A roundup of ULTRA-SONIC the latest home frizz SONIC YOUTH’S KIM GORDON fi ghters that TALKS ABOUT HER UPCOMING mimic salon ART EXHIBITION. STYLE, PAGE 9 treatments. Page 8

AVOIDING THE BRINK American Apparel Gets Key $15M Cash Injection

By DAVID LIPKE

FRIDAY, APRIL 22, 2011 ■ WOMEN’S WEAR DAILY ■ $3.00 DOV CHARNEY HAS USED UP one more of his WWD nine lives. The controversial retailer on Thursday fi nal- ized a private placement of shares in American Apparel that gives the company breathing room on its burdensome debt and a cash cushion to fi - nance operations. The move averts a potential bankruptcy for the trendy Los Angeles-based com- pany, which has repeatedly warned in fi lings that it faced an imminent liquidity crisis. A group of investors led by Toronto-based Elegant Michael Serruya acquired $15.2 million in shares of American Apparel, at 90 cents each, a 27.4 per- cent discount to Thursday’s closing price of $1.24. The deal also includes warrants convertible to an- other $27 million in shares, also at 90 cents each, that are exercisable over the next 180 days. Game As part of the deal, American Apparel also To create his upcoming fragrance, Armani Code Sport, won a waiver from Bank of America on a cove- designer Giorgio Armani has bypassed the usual nant breach on a $58.2 million credit facility that could have immediately become due at the end sporty clichés and drawn inspiration instead from the of this month. seductive nature of athletic strength. The scent begins The strike price on the warrants in the fi nanc- its global launch this month, rolling out to the U.S. ing deal is well below where shares are currently trading, so are likely to be converted to shares, said market in August. Industry sources estimate it could sources close to the agreement, which would bring generate sales of roughly $30 million in its fi rst year yet more cash into American Apparel’s coffers. in the U.S. For more, see page 5. London-based Lion Capital, American Apparel’s largest lender, now holds additional warrants for about 32 million shares, also at a below-market price, following the awarding of ad- ditional warrants related to this latest fi nancing deal, said sources. Any large-scale conversion of warrants to shares SEE PAGE 4

IN WWD TODAY

Zara Enters Australia PAGE 3 L RETAIL: The fast-fashion giant breaks into the Australian market with a store in Sydney and plans to open up to four more this year. Olivier Rousteing Seen at Balmain PAGE 2 FASHION: The key right-hand to Christophe Decarnin is said to be in prime position to take over the hot fashion house.

Fingerhut Parent PAGE 3 PHOTO BY ROBERT MITRA; STYLED BY TYLER RESTY Plots IPO 2 WWD FRIDAY, APRIL 22, 2011 Union Group Alleges Global fashion Workers’ Rights Violations Rousteing Seen Stepping Up at Balmain

with leading a house that Decarnin made synony- By KRisTi ellis By Miles socha mous with audacious, ultrasexy and ultraexpen- sive fashions, but one that may have tapped out its WashiNGToN — a global union federation representing garment PaRis — olivier Rousteing, a key deputy of bold-shouldered, rock ’n’ roll esthetic. industry workers released a report Wednesday night highlighting christophe Decarnin at Balmain, is in pole posi- Decarnin, a painfully shy designer, was absent alleged widespread workers’ rights violations in factories that tion to assume the creative helm of the French from Balmain’s fall-winter 2011 show last month, make sportswear and activewear for 59 major brands and retail- fashion house, according to market sources. under doctor’s orders. as reported, tensions be- ers and collectively employ 100,000 workers in three countries. Balmain is zeroing in on a contract and could re- tween the designer and Balmain’s chairman and The international Textile, Garment and leather Workers’ veal Rousteing’s appointment as early as next week. chief executive officer, alain hivelin, had reached Federation, a global union federation based in Belgium, said according to the designer’s posting on the profes- a breaking point after a five-year collaboration, it turned up the rampant violations through surveys conducted sional networking site linkedin, he has worked at with the two men said to have arrived at widely by its affiliate organizations in sri lanka, indonesia and the Balmain since 2009, and was at Roberto cavalli in divergent views on the fast-growing company’s Philippines in the fourth quarter of 2010. Milan for almost six years before that. a French na- strategy and future direction. The report did not name the factories or level specific allegations tional proficient in multiple languages, he is a grad- Decarnin, who spent seven years as head de- at any of the 59 retailers and brands that were listed in an annex. uate of the Paris fashion and art school esMoD. signer of women’s ready to wear at Paco Rabanne, Researchers in the three countries collectively interviewed WWD first reported on april 6 that Balmain quietly joined Balmain in 2005, steering a brand 100,000 workers at 83 factories and said they found a “litany” of was parting ways with Decarnin and would name synonymous with ladylike clothes into more hot- workers’ rights abuses with the most systematic violation they an internal candidate to succeed him. blooded fashion territory with thigh-skimming said being “widespread suppression of the human right to join or Promoting a number two has become a popular dresses, gauzy T-shirts and ornate embroideries. form a trade union by means of harassment, bribes, the failure to succession strategy in fashion in recent years as Balmain has since become one of the hottest renew short-term contracts and even factory closure.” the importance of star designers has waned. tickets during Paris Fashion Week, and its high The report also noted that none of the 83 factories provide a “liv- sources describe Rousteing as a young and prices have not prevented sellouts and waiting ing wage” to workers and many were forced to work up to 100 hours promising creative dynamo. he would be charged lists at many stores in recent seasons. of overtime a month, and were not paid the basic minimum wage.

finanCiaL Companies Said Vying for Choo Stake

loNDoN — Tamara Mellon was in london this “our bid has not died,” he said. “There are still 100,000 week, talking to potential purchasers of a majority a number of options on the table.” stake in Jimmy choo — which is still not officially a second round of bids is due in mid-May. Number of workers surveyed in ITGLWF study up for sale. last year TowerBrook retained Goldman sachs among the companies keen to purchase and Morgan stanley to explore long-term strategic on conditions faced by workers in factories TowerBrook capital Partners’ stake is TPG capital, options for choo, and the review will most likely in Sri Lanka, Indonesia and the Philippines. whose london office is run by the retail expert Philippe costeletos, co-head of TPG in europe. Meanwhile, the chief execu- tive officer of labelux, Reinhard Mieck, Workers in some of the 49 garment factories surveyed in the is spearheading his company’s bid, in tan- Philippines said they were “destitute” at the end of every month and dem with investcorp. Jones New York is some were forced to pawn their aTM cards for loans, the report said. also reported to be in the running, as is a in the most extreme cases, workers at one factory in sri fourth candidate — a private equity fund. lanka said they were forced to work 130 hours overtime, or all parties — including TowerBrook — three weeks’ worth of additional work, each month. in a factory have declined to comment. in indonesia, workers said management locked 40 people in an Meanwhile, a source close to choo said unventilated room for three hours at a time because they failed it is “unlikely” the current owners, which to meet production targets. include Mellon, will sell for less than 500 Temporary contract workers, comprising about 25 percent of the million pounds, or $810 million at current workforce covered, were the most likely to be exploited and were exchange. some industry insiders say paid even less than full-time workers, according to the report. that’s an optimistic price based more on “The multinational companies sourcing from these factories choo’s potential — in the asian market need to live up to their rhetoric and ensure that every single in particular — rather than on its current workplace in their supply chains complies with the national law successful performance. Revenues are and international labor standards,” said Patrick itschert, general about 150 million pounds, or $243 million secretary at the iTGlW F. at current exchange, and have more than ashling seely, policy assistant to itschert, said the iTGlWF held doubled since TowerBrook purchased the A majority stake in Jimmy Choo may be up for sale. a stakeholders’ meeting in sri lanka at the end of March with a company in 2007. handful of the companies named in the report to discuss the findings on Thursday, a spokesman for Daniel stewart, result in a sale, but it could also lead to an initial and find ways to resolve the problems. she said the involved parties the london-based investment bank and corporate public offering, according to sources. TowerBrook agreed to meet again in three months for further discussions. advisory firm, told WWD its interest was still very principals have been working alongside Mellon, seely said the iTGlWF did not name the factories or link much alive. as reported, Daniel stewart wants to the brand’s chief creative officer and a substantial them to specific companies because in the past, companies have invest in the company along with Mr. Jimmy choo, shareholder in the business, and chief executive pulled out of factories that were cited in reports. who co-founded the firm with Mellon in 1996. officer Joshua schulman. — Samantha Conti

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Photo bY MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. WWD FRIDAY, APRIL 22, 2011 3 WWD.COM CFDA Winners RETAIL Feted at J. Crew Zara Opens to Fanfare in Australia By Patty Huntington Prabal Gurung, Billy Reid and Eddie Borgo. SyDnEy — in scenes reminiscent of the chaos sur- rounding the release of collaborations between H&M STEVE EICHNER and Lanvin and target and Stella McCartney, the open- BY ing of australia’s first Zara store brought foot traffic to a halt on Sydney’s Pitt Street Mall as hundreds of shop- PHOTOS pers queued to get a taste of the Spanish fast-fashion gi- ant’s first australian store. it is the first of three or four Zara boutiques that parent inditex Sa has said it plans to open by the end of the year in australia. the three-level, 19,700-square- foot Sydney store is located within the new $1.9 bil- lion Westfield Sydney development, stage one of which opened last october. a Melbourne store is due to open in the Bourke Street Mall in late June. Selling 300 styles across women’s wear, men’s Zara’s first Australian unit bowed. wear and children’s wear, 85 percent of Zara’s australian merchandise has been either adapted for Zara, whose australian joint venture partner is or tailored specifically to the australian market, ac- Melbourne-based Premier investments, is among a rash cording to inditex spokesman Jesús Echevarría. of international midmarket brands heading down under. “We needed to be very sure that the collection Recent arrivals, or those soon to be, include gap, uniqlo, was the right one,” said Echevarría, who revealed Banana Republic, Hennes & Mauritz and Victoria’s Secret. that seven years after opening in argentina, just 50 “While the australian market has always been a bit of Zara’s 1,723 stores are located in the Southern too small for foreign players to really make an effort to Hemisphere. South africa will join the list by the crack into, we’re the only country to dodge the global end of 2011. financial crisis bullet and suddenly we’re a fairly ap- Prices of the australian products range from $16 pealing prospect for the next five years at least,” said for a tank, up to $75 for a pair of leopard-print skinny iBiSWorld senior analyst Ed Butler. jeans, $126 for a trenchcoat and $255 for a three-quar- With clothing, footwear and personal accessories ter-length car coat in coral — one of a number of styles retailing falling by 2.5 percent in January, according to offered in an eye-popping, and rather summery, palette australian Bureau of Statistics figures, local retailers of hot pinks and oranges. have good reason to be nervous of Zara in particular, “We’re in a very colorful season, maybe there are according to Butler. some similar garments in the north, but they will be “i think Zara could be a catalyst for a bit of a shift adapted to the southern fabrics” said Echevarría, who in australia’s clothing retail market in the next few added the design team will be keeping a close eye on years,” said Butler. “they will be responsible for what sells and what doesn’t. changing consumers’ behavior just enough to create a “Every week you are receiving two lines per week, problem. it’s such a precariously balanced market at items that are based on the decisions of three weeks ear- the moment, with so many retail outlets and so many Coco Rocha and lier, that the customers took,” said Echevarría. “at the end retail brands competing in pretty much the same space. Joan Smalls of the day, it’s how close you are to the customer.i t’s more it’s hard to imagine that every single company that’s in than a commercial claim to say the customer is the most the market at the moment will be around in five years’ nEW yoRK — “WHo LEt HER important thing. Here it’s really the engine of everything.” time. We just don’t buy that many clothes.” in?” Prabal gurung joked as model Joan Smalls approached him at J. Crew on Fifth avenue FINANCIAL Wednesday night. “Security!” the jovial spirit extended to the entire party, which feted the CFDa/ Vogue Fashion Fund, its 2010 winner Jeffries’ Total Pay Drops 36% in 2009 Billy Reid, runners-up gurung and MiCHaEL JEFFRiES, chairman and chief executive officer of abercrombie & Fitch Co., saw his cash compensa- Eddie Borgo and their limited edition tion and total pay package go in opposite directions last year. collaborations with the multichannel His cash compensation more than doubled, to $3.8 million from $1.5 million, as his salary remained un- specialty retailer. changed at $1.5 million and his cash bonus — nonequity incentive plan compensation — hit $2.3 million based on Reid is kicking off the three- Harley the teen chain’s strong operating performance last year. He received no bonus for 2009. month cycle with his men’s wear Viera- Jeffries’ total compensation declined 36 percent to $23.2 million from $36.3 million in 2009 as his option awards pieces, which arrive in select J. Newton fell 57.7 percent to $14.1 million last year versus $33.3 million in the prior year. However, the 2009 package included Crew stores and jcrew.com this a retention grant of stock appreciation rights for four million shares which don’t fully vest until the completion of his week and run through May. gurung’s contract at the end of the 2013 fiscal year. Jeffries received no stock awards in either year. women’s collection for J. Crew will be available in Because of vesting schedules and fluctuating stock prices, stock and option awards aren’t necessarily realized June, while Borgo’s jewelry designs will retail at J. by the executive officers of public companies, but the Securities and Exchange Commission requires they be Crew during July. reported at “fair market value” for the years in which they’re earned. this was the first design collaboration for gurung. Jeffries’ other compensation rose to $4.6 million last year, triple the 2009 level, but $4 million of that amount “it was good it’s a different market and a bigger audi- was in a onetime lump sum payment in exchange for which he agreed to limit his personal use of the company ence and so being able to design something at that aircraft to $200,000 a year or else reimburse a&F for any additional amounts. price point was fun,” he said. “it was something i al- in a strong turnaround last year following a difficult 2009, a&F’s net income hit $150.3 million, versus $300,000 ways wanted to do.” the prior year, as sales grew 18.4 percent to $3.47 billion and same-store sales rose 7 percent. Shares closed Reid found J. Crew to be the perfect collaborator. thursday at $69.61, down 6 cents or 0.1 percent.  —arNOLdJ.Karr “they made it so easy for us,” he said. “the way we worked together just felt so right.” Reid clearly caught a collaboration bug of sorts. on thursday, he unveiled a special sneaker for K-Swiss, which he pitched to the Fingerhut Parent Plans $150M IPO footwear company after owning a similar pair in his youth. “i am just excited to get them again,” he said. BLuEStEM BRanDS inC. — which owns the Fingerhut total orders last year. Bluestem targets low- to middle-in- CFDa executive director Steven Kolb, who served catalogue, e-commerce and credit business — is looking come consumers with credit scores between 500 and 700, as a host that night, praised the initiative’s reach, to raise $150 million in an initial public offering. especially people with household incomes below $75,000. which includes J. Crew’s online and catalogue busi- the company did not reveal a timing on the iPo. the company has more than 30,000 stockkeeping ness. “to have their merchandise shown to so many this wouldn’t be Fingerhut’s first time under the glare units and sells hundreds of brands, including Columbia, more people, and talked about with an editorial voice of the public markets, however. Federated Department Maidenform, Lee, apple Bottoms and Skechers. is very valuable to the designers,” he said. Stores, which has since been renamed Macy’s inc., bought Bluestem’s fashion sales — encompassing apparel, in addition to Vogue’s anna Wintour and J. Crew’s Fingerhut in 1999, but the two businesses never gelled. footwear, cosmetics, fragrances and jewelry — shot up Millard “Mickey” Drexler, the party attracted Coco Federated sold the business’ inventory and intellectual 29.5 percent last year to $74.2 million, outpacing sales in Rocha, andrew Rosen, Peter Som, Elettra Wiedemann, property to FaC acquisition, which in turn sold it to the the firm’s home and entertainment divisions. Christian Cota, Jeffrey Costello and Robert newly formed Bluestem brands in 2002. total 2010 sales tallied $521.3 million and boiled down tagliapietra, Lazaro Hernandez and Jack McCollough, Bluestem is led by chairman and chief executive of- to losses available to its shareholders of $25.1 million. yeohlee teng, Patrik Ervell, Erin Fetherston, Maria ficer Brian Smith, who introduced a new marketing strat- those losses translate into pro-forma profits of $19.8 mil- Cornejo and Sophie theallet, as well as co-hosts Mark egy extending preapproved credit offers to new prospects lion considering the impact of the proposed offering and Holgate and Meredith Melling Burke of Vogue. Harley and launched the gettington.com e-commerce site tar- other related items. Viera-newton spun the tunes at the party, which had a geting younger customers. the company also introduced Bluestem, which detailed its plans for an iPo in distinct Southern flair. a notable absence was J. Crew Fingerhut FreshStart, an installment credit service for a filing to the Securities and Exchange Commission president and creative director Jenna Lyons, who was people who don’t qualify for credit cards, and made over- thursday, said it would use the proceeds of the offering at home with the flu. “She must be really sick if she tures to Spanish-speaking consumers. to pay down debt. the company, based in Eden Prairie, isn’t here,” Borgo offered. —MarcKariMzadeh online orders made up 44 percent of the company’s Minn., had total debt of $330 million. —eVaNcLarK 4 WWD FRIDAY, APRIL 22, 2011 retail American Apparel Gets $15M Lifeline

{Continued from page one} 4.2 million shares, relieving American The consortium of investors also in- Apparel of that debt obligation. cludes Dynamic Funds, Front Street Capital, would dilute Charney’s shares in the com- The stock buy boosted Charney’s stake EdgeHill Partners and Essentia Equity. pany to below 50 percent, noted sources. in American Apparel to just more than 47 Serruya is a deep-pocketed inves- However, Charney could regain majority million shares. In a March 1 fi ling with the tor who got his start as a frozen yogurt control via stock options that vest at cer- SEC, Charney previously outlined owner- entrepreneur with a single Yogen Früz tain prices over the coming years. ship of 41 million shares, or 51.8 percent of stand at the Promenade Mall north of Last month, Charney provided a per- the company’s 79.1 million total outstand- Toronto, going on to co-found CoolBrands sonal cash infusion to the cash-strapped ing shares. That percentage increased with International Inc., which eventually oper- company, purchasing six million shares. Charney’s new share purchases — and have ated nearly 5,000 franchises. More recent- In the transaction, Charney spent $2 mil- now been diluted again in this latest deal. ly, Serruya made a big, winning bet on a lion to buy 1.8 million shares at $1.11 Charney declined to comment about Jamba Juice investment while its stock each. Additionally, he converted a $4.7 the transaction, deferring to an immi- was severely depressed. He currently million personal loan he made to the nent 8-K fi ling with the Securities and serves as a director of Swisher Hygiene company some years ago into another Exchange Commission. Inc. and Response Genetics Inc. Roy Sebag, managing partner in Essentia Equity, said the investment group believed American Apparel’s stock was Private investors acquired $15.2 million undervalued in relation to the company’s in shares of American Apparel. fundamental strengths. “We are contrarian

investors and look for opportunities where JESSE GRANG/WIREIMAGE the market has discounted companies for reasons that are temporary,” said Sebag. Dov Charney “American Apparel is a perfect example of PHOTO BY that. In my opinion, it’s one of the greatest brands that’s been created in the recent ernment investigation of the company’s past — it went from zero to $550 million in manufacturing facility in Los Angeles led sales in fi ve years, has set countless trends, to the loss of nearly 3,000 workers. resonates with consumers around the However, Sebag pointed out that world and is trading at a ridiculous valu- American Apparel’s enterprise value is ation. Why? Because of sexual harassment currently about $245 million, or four to lawsuits, an auditor resigning and employ- fi ve times normalized EBITDA. “Yes, last ees being deported — which all makes for year was terrible for American Apparel — great headlines but has nothing to do with they had $25 million in professional fees consumers around the world wanting to go — but in a normalized year they make $55 into the stores and buying the product.” million to $60 million in EBITDA, which Last year, American Apparel posted a they did for years in a row. Compare net loss of $86.3 million and an EBITDA that EBITDA to enterprise value and loss of $7.4 million. Same-store sales de- American Apparel is trading at four to fi ve clined 13 percent during the year. Charney times EBITDA, compared to Abercrombie has been the subject of numerous sexual & Fitch, which is at 17 times EBITDA and harassment lawsuits and a late 2009 gov- Lululemon at around 70 times.”

WWD: Can department stores take back share and Rue La La, Gilt Groupe and HSN will tell you ROBIN LEWIS what should they do to ensure their survival? it’s no longer about convenience or just product Robin Lewis: Look, department stores are still los- or service. It’s about the experience. COUNT ON ROBIN LEWIS to preach his gospel ing market share — $12 billion in sales to spe- of retailing — any chance he has. cialty stores from 1997 to 2010. But those that WWD: Are you being provocative in your book Q From the podium at a fashion forum or chat- morph and evolve into more of a specialty-chain when you predict 50 percent of all brands will ting one-on-one over a cocktail, refuting mom- model, that end up operating with a whole bunch be gone, or is that for real? and-pop retailers that whine about Wal-Mart, of specialty stores within that big giant space in R.L.: It’s a general number, and there will be insisting on which brand “gets it” or doesn’t, which they operate, if department stores do it new ones coming on board replacing a lot that and tracing tectonic industry shifts have been right, they could beat specialty stores at their own disappear. But the retailers that are not pursuing A his shtick. So has casting department stores as game. Penney’s has Mango and Sephora. Macy’s some level of these three operating principles dinosaurs. “They just don’t get it,” echoes in your ears. has Sunglass Hut. Somebody one day is going to [neurological connectivity, preemptive distribu- So what does this strategic consultant say now, with Macy’s, let Victoria’s Secret in. tion and control of the value chain] Nordstrom, Belk and Bloomingdale’s showing renewed vitality? are just not going to make it. Some “There was always a caveat. I would say department stores would be WWD: What’s happening with the con- of these failed businesses might be gone unless they transformed into a different business model,” Lewis sumer? Are they shopping smarter? acquired. Some might be replaced. said in an interview. R.L.: With all of the advances in Some might go private, but then Now Lewis, the chief executive of The Robin Report and a pro- technology and communications, the effort must be to change them. fessor at the Fashion Institute of Technology, has another platform we think the consumer is reas- Like everything else in this econo- from which to preach. He’s coauthored “The New Rules of Retail: sessing value in terms of quality my, we prop up the losers. We keep Competing in the World’s Marketplace” [Palgrave Macmillan] with and price. IPhones can take a pic- them alive. Our theory is that in Michael Dart, principal and head of private equity and strategy at ture of a bar code and fi ve or six this new wave three environment, Kurt Salmon Associates. The book lays out the evolution of modern names of stores come up that sell this bubble can’t continue to grow. retailing in three waves: 1850 to pre-World War II, when demand the product for less. Information was greater than supply and the grande-dame department stores is so transparent. They are going WWD: You’ve been outspoken on emerged; 1950 to the Eighties, when the development of highways to fi nd a lower price. Consumers Sears, which is a case study in triggered explosive mall growth and Wal-Mart, Target and Kmart are driving all ships down. your book. Is this a retailer being were born, and the Nineties to the present, when advanced tech- propped up, like part of the bubble? nology, globalization and low-cost production emerged, clogging the WWD: Are stores getting better or R.L.: I think Eddie Lampert pipelines with too much “stuff.” worse at creating “experiences” believed he could turn Sears Then the authors make some bold predictions, among them that 50 and achieving that “neurological around, but I think he got to a percent of all brands will disappear over time and 80 to 90 percent of connectivity” you write about? point, heading into the recession, department store revenues will be generated by exclusives and pri- R.L.: With department stores, it’s much more dif- when he fi nally realized he can’t. But rather vate brands and that department stores will roll out specialty chains. fi cult to pull off, but they are pursuing better than let it collapse, he is managing it down. The only survivors, they say, will be those that “neurologically con- experiences. They are moving in that direction He’s not going to spend anything to clean up the nect” to consumers by providing compelling shopping experiences; but it’s a much bigger challenge because they stores or renovate. Instead, he will allow [the “preemptively distribute” through all channels — Internet, mobile, have so many different departments and brands, team] to play around with all these initiatives, catalogue, stores and social networking — to get to consumers fast whereas a specialty store has one location, one all very low investment tactics. He’s taking cash and frequently and take control of the “value chain” of design, sourc- brand. They can create that experience a lot out, not putting it back in, and investing in other ing, manufacturing, logistics and distribution. easier than Macy’s. I think the ones who “get it” things. He will let the businesses steadily de- In the following Q&A, Lewis elaborates on the new rules of busi- know that product alone, or service alone, are cline. He is managing its decline [rather than] ness, how consumers are wising up and what retailers must do to not enough anymore. That’s just the price of letting it collapse like Circuit City. At a certain succeed in the 21st century. — DAVID MOIN entry. They’ve got to create an experience. Even point, he will start selling the brands. WWD Friday, april 22, 2011 5 WWD.COM

For snippets, see beauty WWD.com/ beauty-industry-news. Armani Code: Sportsmanship Refined

By Kerry Olsen Megan Fox

MIlAn — Giorgio Armani Parfums is diving back into the market with john aquino the introduction of Armani Code sport, a new masculine fragrance and counterpart to Armani Code Homme and Armani Code Femme launched in 2004 and 2006, respectively. photo by yet, forget notions of playing fields and locker rooms, as designer Giorgio Armani has bypassed the usual sporty clichés, drawing inspira- tion instead from a cinematic encounter and the seductive nature of athletic strength to position his latest scent. “I had in mind a story that would combine tension and seduction in a metropolitan setting,” said Armani. “I wanted the masculine physical- ity to be intense, powerful, in a way that would be an ideal reflection of the essence of Armani Code, a kind of sequel.” He underlined the roster of sportsmen, including David Beckham, Cristiano ronaldo and rafael nadal, who have posed for his sultry ads and, “who represent the ideal image of male beauty, men with bodies accustomed to athletic performance and challenge.” Model Chris Folz fronts the new fragrance. In TV ads he is joined by sultry actress Megan Fox — the face of Giorgio Armani Cosmetics — who reprises her role for the Italian fashion house. Code sport’s steamy cam- paign is set at night by a swimming pool with a los Angeles skyline pro-

viding the noir background. A new advertising saga starring the duo is also set to bolster the existing Code franchise. The launch will be supported by TV spots, digital campaigns — includ- ing banner advertising on relevant sites like Facebook and youTube — and 24 four million scent strips set to be disseminated in the second half, according to Marc rey, president of Giorgio Armani Beauty, U.s. rey said

he’s expecting to reach a slightly younger audience via the scent’s adver- tising and soft-touch packaging — a slick black high-tech linear flacon with brushed metal cap, which warms to the touch and features a red logo. Code sport is slated to roll out from mid-April in europe followed by Asia in July and the U.s. in August and to reach more than 20,000 doors. Giorgio Armani Parfums, part of l’Oréal’s worldwide luxury Products Division, and the’’ designer’s licensing arm inside the French beauty giant is aiming for Code sport and Code Homme to become the top ranking masculine franchise globally, according to Véronique Gautier, president, of Giorgio Armani Beauty worldwide. Meanwhile, Acqua Di Gio, released in 1996, is expected to hold onto its top slot as the world’s number-one masculine fragrance. “We plan on executing an aggressive plan,” said rey, noting that he is shooting for a top-five position in the U.s. Although executives de- clined to discuss sales projections, industry sources indicate a target in the top five would necessitate a second half retail volume in the U.s. of $15 million, or $30 million for the whole year. The new juice, blended by Jacques Cavallier from Firmenich, dif- fers in its olfactory makeup from the oriental, sensual Code Homme, according to Gautier. Code sport is said to combine a bouquet of mints and sicilian mandarin to create its energetic kick. As Armani envisaged a scent with an enduring freshness, Cavallier blended a long-lasting I wanted the masculine physicality to be intense, powerful, in a way that would be an ideal reflection of the essence of Armani Code. — GiorGio ArmAni

Firmenich molecule dubbed Hivernal that plays a key part in the scent’s olfactory A print ad for Armani Code Sport. makeup and is intended to evoke the frozen freshness of ice. Ambrox gives the scent its contrasting sexy element. Code sport will be priced in the U.s. at $59 for the 1.7 oz. eau de toilette, $73 for the 2.5 oz. size and $37.50 for the value-driven 1 oz. size. Commenting on Giorgio Armani Parfums’ strong growth despite waning consumer interest in the sector, Armani credited coherent values as sustaining success. “From the fragrance to the packaging and publicity, the message never meanders, retaining a close link with my fashion,” he said. In fact, ahead of the curve, Armani was one of the first fashion houses to pioneer a niche fragrance collection when he unveiled his Armani Privé line of haute couture fragrances in 2004. “It’s true that the taste for craftsman-produced perfumes, a preference which I ’’ fostered and pioneered, is becoming a trend, a niche market, very sophisticated, but here to stay,” said Armani on burgeoning consumer interest for artisanal fragrances. To this end, Gautier said the house has ambitious plans for the line that has re- ported fast growth after last year’s successful launch of the Mille et une nuits col- lection, an eau de parfum trio of eastern inspired essences. Gautier said the French beauty company is gearing up for a June launch of la Femme Bleue, an exclusive Privé perfume available in a limited run of a 1,000 numbered bottles, and set to re- tail at Giorgio Armani boutiques and selected perfumeries around the world for 500 euros or around $723 at current exchange. she said, “Our strategic focus is to grow whilst keeping a very exclusive distribution.” — With contributions from Pete born, neW York 6 WWD friday, april 22, 2011 beauty Nuxe Zeroes In on U.S. Market L’Occitane Aims to Double Revenues

was created in 2004, and the Nuxe PARIS — L’Occitane en Provence, the By JeNNIFeR WeIL brand is carried in 115 U.S.-based natural beauty maker and seller, is doors, primarily independent re- looking to drive business through store PARIS — Nuxe Groupe plans to ex- tailers and pharmacies. In New openings and developing in other re- pand further afield in the U.S. York, for instance, it’s carried at tail channels, such as the Internet. The move comes after the natural Henri Bendel, and starting last The company was listed in May French masstige beauty brand has year, the brand was also referenced 2010 on Hong Kong’s stock exchange. become a bestseller in its by Space NK and Bliss. L’Occitane, whose shares initially avail- domestic market. There, Nuxe aims to widen its able were 160-times oversubscribed, re- it ranks third among geographic reach in the portedly raised 5.49 billion Hong Kong cosmetics brands in U.S., where it has people dollars, which at the time was equivalent pharmacies and para- on the ground in New to $707 million. pharmacies (after York and California. “We “It was a very successful IPO,” said Avène and La Roche- would like to have better Reinold Geiger, L’Occitane’s chairman Posay and before Vichy coverage in Florida and and chief executive officer, who added and Caudalie). in Texas,” said Lucot, the company went public to have or- Nuxe is also estab- adding the next step after ganic growth. “And this means that we lished in various other that would be to sign on have many additional opportunities to Reinold markets, such as else- with a national chain. open stores.” Geiger where in europe and elsewhere in the Today, L’Occitane has approximate- Asia. Over the past few Americas, Nuxe — which ly 1,600-plus doors of which 750 are months, for instance, started operations in wholly owned. doors, Brazil, Russia and Mexico. “You it opened subsidiaries Mexico in 2010 — in- “We can probably double [the can grow very much [there], and that is in Spain and Belgium. tends to open most Latin number of] our own stores,” he said, what we are doing,” he said. Another one was American countries in the without specifying in what time The U.S. also holds “plenty of growth kicked off in Poland last next two years. frame. Geiger also plans to double possibilities for us,” continued Geiger. year, when the brand also Nuxe Groupe’s best-selling Nuxe’s wholesale rev- L’Occitane’s sales. Geographically speaking, Japan is opened an office in Hong Huile Prodigieuse. enues last year were an esti- For the nine months ended Dec. L’Occitane’s largest individual market Kong. In 2009, it inaugurat- mated 120 million euros, or 31, 2010, the company’s revenues in- in terms of revenues. Then come the ed a bureau in Dubai. $173 million at average exchange for the creased 26.5 percent to 585.5 million U.S. and France. The latter generates Nuxe began selling in travel retail period, up 14 percent over 2009, accord- euros, or $765.7 million at average ex- less than 15 percent of total revenues about a year ago and has a recent in-flight ing to Lucot. Of that, the U.S. generated change for the period. Minus foreign for the company, while Asia rings up a duty free partnership with Air France for 0.5 percent. For 2011, he reckons Nuxe’s currency translation effects, sales bit under 50 percent. its long-haul flights. The brand entered sales gains will be higher than 15 percent gained 15.3 percent on-year. Geiger didn’t nix the prospect of fu- Canada in 2006 and has 785 doors there, in- year-over-year. “Our international sales L’Occitane has been sold on QVC in ture acquisitions. cluding Drug Mart, Jean Coutu and London multiplied by four in the last four years, the U.S. and U.K. for about a decade, “It’s a possibility, but it is not very Drugs. Today, Nuxe has a team of people and worldwide — including France — our while QVC in Japan remains relative- easy to find one,” he said. “We don’t based in Paris focusing on foreign markets. sales multiplied by 2.2,” said Lucot. ly new. want to buy a company just for the sake “So now we have quite a nice network Nuxe’s top-selling products are 20-year- “But it’s doing very well, and we are of growing. There are a few very in- of our own companies in europe,” said old Huile Prodigieuse, Crème Merveillance very successful in Japan,” said Geiger. teresting companies, but their owners Sébastien Lucot, Nuxe Groupe’s general and Rêve de Miel lip balm. “There will be He added L’Occitane’s e-business don’t want to sell them.” manager. “That’s why we now start having always products adapted to local needs,” is a small but growing percentage of L’Occitane’s product line has about more ambitions for the U.S.” continued Lucot, citing as an example whit- the company’s overall sales. Its big- 500 units, with best sellers including the Another reason stems from retailers fur- ening products produced for Asia that have gest market for the channel is the U.S., Shea Butter collection and Immortelle ther developing their skin care sections, he been strong sellers in the Middle east, too. followed by Japan, which is catching face care products. continued. “There are many initiatives in France remains Nuxe’s largest market, up. “Obviously, we continue open- L’Occitane was founded in 1976, and that direction from the distribution,” said followed by Italy, Belgium and Germany. ing more stores,” continued Geiger, Geiger became a minority shareholder Lucot. “Also, we see that there is in the U.S. And as the brand continues its interna- adding L’Occitane already has a very in the firm in 1994 before taking the a definite need and demand for natural tional development, it plans to have some strong presence in emerging markets, company over in 1996. [and, increasingly, organic] products.” flagship spas in key countries and cities, including China — where it has 48 — J.W. Fort Lauderdale, Fla.-based Nuxe Inc. said Lucot.

P&G’s Jongstra to Retire in January obituary

PROCTeR & GAMBLe’S of the business’ five brands, Robert Jongstra, president, Sebastian Professional, Arlyne Roer, Co-founder of Joey NY global salon professional, Wella Professionals, Clairol will retire effective January Professional, Nioxin and ARLYNe ROeR, one of the founders ty boutiques. 1, 2012. He will step down Vidal Sassoon. Jongstra has of the cosmetics line Joey N Y, died on “We worked as a team together from his current role May 1 been with the company 29 April 12 from complications related to in all aspects of the company,” said and will then serve as presi- years. a brief illness. She was surrounded by Chancis. “She was a pioneer and a dent, brand franchise capa- In January Jongstra family and friends, said her daughter true visionary.” The pair had just bility, reporting to Robert talked about the global roll Joey Chancis, chief executive officer completed a new cosmetics collection A. McDonald, chairman of out of Wella’s new retail of Joey NY. based on coconut water that was re- the board, president and items, just the beginning of Roer co-founded the Aventura, cently slated to launch on HSN. Due chief executive officer, until Robert building the brand into a Fla.-based company with her daugh- to Roer’s illness, the launch has been January. Jongstra will part- Jongstra leader, complete with flag- ter and served as president of the rescheduled for August. Chancis said ner with Marc S. Pritchard, ship salons, retail displays company, which sells its products on of the collection, “This has her stamp global brand building of- and possibly even TV ad- HSN and in spas, salons and special- on it.” ficer, for this assignment. vertising. The company also is truly a fam- Adil Mehboob-Khan, cur- “Our North American ily affair with Roer’s husband and rently vice president — business is a model for Arlyne Roer Chancis’ father, Richard Roer, serving female beauty, Western us in terms of results and as co-ceo. europe, will succeed how they are delivered. “She loved [beauty],” said Chancis. Jongstra on May 1 and will For a market that has been “It was her passion. It was about report to edward D. Shirley, in decline 3 to 5 percent- building friendships and relation- vice chairman — global age points [annually] over ships.” beauty and grooming. He Adil the past two to three years, After attending emerson College will continue to be based in Mehboob- [our] business has been very in Boston, Arlyne Roer entered the Geneva, Switzerland. Khan strong and has grown seven women’s fashion business. Later, she Jongstra was instrumen- to eight points over the past launched Joey NY with her daughter tal in the firm’s integration of three years. Those results and husband in 1993. Wella, which when acquired in March 2003 are a true turnaround — they had been Roer is survived by her husband made P&G the world’s second largest salon declining. And these results are sustain- and daughter, as well as her son company. He is credited with P&G Salon able,” Jongstra said. Gregory. She also leaves behind a Professional’s ‘Stylist is Boss’ philosophy and Mehboob-Khan has been with P&G for daughter-in-law Patricia and son-in- led a transformation that included the cre- more than 20 years, 15 of which have been law Richard Chancis, and three grand- ation of a global, complementary portfolio in beauty. — AndreA nAgel children. — Molly Prior

WWD friday, april 22, 2011 7 WWD.COM LVMH’’ Scent Unit Sees Growth

Global brand presidents were named for Givenchy, summer, the company has “extremely high expecta- Kenzo plus Fendi and Pucci. The new structure did tions,” particularly in the U.S. and Italy, he continued. not affect LVMH’s Christian Dior and Guerlain brands, The second objective of LVMH Fragrance Brands which maintain their own sales teams. was to be certain Givenchy and Kenzo would also ben- Lorenzo explained the number-one short-term ambi- efit from the new structure. tion for the new setup — which hasn’t been initiated in “What we could not afford to do before when we had every single market — was to ensure a sales structure only smaller sales forces is to dedicate specific sales was in place to launch the new Fendi women’s scent, people to travel retail and other sales people to the ex- Fan di Fendi. Its debut in September 2010 brought the port market,” said Lorenzo. “[They’re] completely dif- brand back into the fragrance market. ferent jobs. Fendi Palazzo women’s fragrance was discontinued “We’ve also been able, in the process, to beef up our sales structure for subsidiaries because now we have regional directors supervising our different affili- ates in the world, which we didn’t have before,” added “The number-one ambition Lorenzo. “So that also should allow us to spread the best practices between countries with affiliates much better is to make a big comeback than in the past, when we had no such structures.” Alain Lorenzo For Pucci, the first order of the day was the introduc- in the Fendi brand. tion of Miss Pucci, in late August 2010. LVMH Fragrance Brands has been tweaking some — AlAin lorenzo, lVMH processes, such as logistics, to make them operationally PARIS — LVMH Fragrance Brands, the structure merg- FrAgrAnce BrAnds smoother for the sales team and also result in cost-sav- ing the sales forces of Givenchy, Kenzo, Fendi and ings. The process should be completed by yearend. Pucci, has been in place since January. Lorenzo didn’t deny that down the road it might be pos- “The organization is doing very well,” said Alain by LVMH in 2009, just 18 months after Fendi relaunched sible that LVMH Fragrance Brands could grow its portfolio. Lorenzo, its president and chief executive officer, add- its activities in the segment in 2007. At the start of the “Probably at some point, but there’s no rush,” said ing there is just some fine-tuning left to do on it. first part of its two-phased launch, sources estimated Lorenzo. “I think the big mistake would be to try and do “I would say 95 percent of the work is done now,” Fan di Fendi would generate $50 million in first-year too much, too quickly.” continued Lorenzo. wholesale revenues worldwide. Last year, sales at LVMH’s perfumes and cosmetics The new structure virtually doubled to 150 people, “The number-one ambition is to make a big come- division — which includes LVMH Fragrance Brands — the size of the international export and travel-retail sales back in the Fendi brand with a product that we think gained 12 percent to 3.08 billion euros, or $4.08 billion force of those four LVMH Moët Hennessy Louis Vuitton- has a lot of potential,” said Lorenzo, adding that dur- at average exchange for the period. Organic growth was owned brands. Meanwhile, each one’s creative, market- ing the first phase of its launch, the scent has done very 9 percent. ing and communications activities remain separate. well in Russia and Brazil. For phase’’ two, starting this — J.W. Nioxin Defines, Addresses Thinning Hair Pantene Bottles Go Green

TWO AnD A HALF yeARS following its acquisi- THe FIRST COnTAIneRS of Pantene to utilize plant- tion of nioxin, Procter & Gamble Co. is launching based plastic shipped to stores in Western europe this new formulas and an education plan for stylists, month. The move is just the beginning of Procter & both of which look to open the lines of communi- Gamble’s effort to replace petroleum-based containers of cation between stylist and client on the sensitive Pantene with ones that incorporate plant-based plastic, topic of hair thinning. which is sourced from sugarcane. But, first, P&G had to define what hair thinning While P&G executives said consumers won’t be able to is, the problem-solution nioxin targets. tell the difference between a plant-based container and the Indeed, the difference between hair thinning/ previous ones, there will be green labels on the containers hair loss and hair regrowth, both of which nioxin calling out the firm’s efforts. The roll out is expected to take does not address, is great. nioxin, a cosmetic, is de- 18 months as Pantene is sold in 180 countries. signed to give users thicker, fuller hair. According Overall, the new packaging effort means that P&G will to P&G research, hair thinning affects three out of consume 70 percent less fossil fuel than using the traditional four people, more than the number of those who packaging process, which is not a renewable resource. The use hair color. facility that makes the containers runs almost exclusively “A lot of clients had no overt signs but in their on energy derived by the sugarcane by-products. “They overall beauty routines they were noticing thin- even produce excess energy that is returned to the grid,” ner ponytails and hair in the sink,” said Reuben said Hanneke Faber, vice president and general manager of Carranza, chief executive officer, P&G Salon Global Hair for P&G. Professional north America. While the cost to operate the packaging shift is higher P&G identified three signs of thinning hair: poor than the prior method, it isn’t a cost that would make an scalp environment, fewer hair strands and finer impact on the beauty giant’s financial results, according hair strands. to Faber. To address these symptoms, nioxin has devel- “It is an investment to be at the forefront and as the tech- oped six regimens featuring tailored technolo- nology becomes more mainstream [costs will decrease]. As the gies for various hair textures, hair condition and world’s biggest hair whether hair is virgin or colored. each technol- care brand, we need ogy offers a shampoo, conditioner and treatment Nioxin now has six to be there first. We which aim to deliver thicker-looking hair in 30 regimens for are responsible for days. Stand-alone items include in-salon service thinning hair. healthy hair and also nioxin Scalp Renew Dermabrasion and at-home a healthy world.” product nioxin Scalp Renew Density Restoration ucate stylists on what thinning is, while seminar While P&G’s sus- Treatment, which aim to first treat the scalp, like a workbooks will be available to reference following tainable efforts trace skin care product. educational training. Trained stylists will receive back to the Fifties, it According to P&G, 70 percent of users noticed official nioxin diplomas and certificates. A June was in 2007 that the their hair looked more thick and dense after two and July rollout of the information and new retail firm’s first formal vi- weeks of using nioxin. Clinical testing, the com- displays are planned for north America. sions and strategies pany said, has shown that the nioxin Density Carranza said that nioxin is the number-one in the area were re- Restoration Treatment is effective enough to help brand in the professional market in north America vealed, which aims reduce hair fall (due to breakage and unhealthy in market share, with an 80 percent share, is car- to improve five bil- environmental action) by an average of 54 percent. ried at 30,000 salons and beauty stores throughout lion lives in the next To better inform stylists about hair thinning and the U.S. and is available in more than 40 countries five years. nioxin, P&G put together a panel of experts, in- and 70,000 salons and stores worldwide. The amount of cluding dermatologist Valerie Callender, celebrity “nioxin has the potential to be a $1 billion greenhouse gases re- stylist Jen Atkin and appearance psychologist and brand,” Carranza added, but, “Most hairdressers duced by P&G’s new professor Stephen Franzoi. The panel, along with were not prepared to engage in the conversation method of packaging nioxin executives, has compiled extensive educa- and had a lack of the practical tools and approaches Pantene is reduced tion on thinning hair, including consultation sheets to engage the client to reinforce their authority. It’s by 170 percent said and a nioxin System Selector Wheel to help trig- not only an opportunity but our responsibility as the Len Sauers, P&G’s ger discussions with clients about hair thinning and market leader to address this. We need to arm them vice president of Pantene Pro-V’s plant-based which products would be best for them. Product with a solution that the client can walk away with.” sustainability. Nature Fusion packaging for information videos have been created to help ed- — A.N. — A.N. Western Europe. 8 WWD FRIDAY, APRIL 22, 2011 WWD.COM beauty Playing It Straight at Home As consumers continue to fl ock to salons for pricy keratin treatments formulated to make locks look frizz-free and smooth, a smattering of suppliers have recognized the opportunity to create items for those willing to do the service at home. Even Sephora, seeing a need in the marketplace, went so far as to tap its own supplier to manufacture an exclusive brand, complete with customized packaging. Below, a list of several at-home smoothing treatments with a wide range of price points, length of lastability and skill required to get desired results.

TOUCH OF KERATIN KERATIN EARTH lowed by an application of the super-thick gel “It’s like a wonderful little secret that Heleyne Mishan, a former fashion executive and Straightening Therapy (which is left in hair for 20 gives consumers the ability to get more owner of the now-shuttered Cantaloup boutiques in minutes). The treatment is then washed out with life out of their keratin treatment,” or New York, has turned her attention to beauty. She shampoo and the Nourishing Masque is applied. simply address their frizz in an instant. So joined her family’s business Emson Inc. in 2009 and Hair is then blow-dried straight and fl at ironed. said Doreen Guarneri, founder of profes- is now charged with building the “as seen on TV” Users can wash their hair immediately afterward sional manufacturer American Culture, product company’s beauty portfolio. The compa- with the Keratin Earth Shampoo and Protein maker of Simply Smooth products. ny’s biggest beauty push this year is Keratin Earth, Conditioner, of course. The odorless treatment The 2-oz. spray helps make hair re- billed as an all-natural, at-home Brazilian-style can be used once every month to straighten waves fined, keeps ends from splitting and straightening treatment free of harsh chemicals. and loosen tight curls into loose waves. It also is won’t make hair lose body. The item The formula relies on the active ingredient called designed to be safe on color-treated, chemically uses “only the purest, highest quality trametes versicolor extract and the protein keratin. processed or relaxed hair. keratin, as well as natural botanicals The product is slated to launch with a two- — MOLLY PRIOR from plants, apple pulp and vanillin. minute informercial today, and It’s not a straightening treatment,” a 30-minute informercial is ex- Guarneri said. pected to follow. Keratin Earth To use, the spray should be applied plans to distribute to key beauty Keratin Earth directly after a shampoo (no condition- retailers as well. Emson’s info- er) to towel dried hair. The user should mercial coupled with a retail then blow dry and fl at iron her hair at sales approach helped the fi rm’s about 400 degrees. Hair should be left InStyler rotating hair iron sell untouched for 24 hours. “The faster more than two million units in you shampoo the faster it wears out,” less than two years. said Guarneri. Keratin Earth — a $79.95 at- Many users will get a month or home straightener designed to more out the treatment, she said. The last up to three months — is a item sells for $49.95 at Guarneri’s four-step system free of formal- Greenlawn, N.Y.-based salon, The Look, dehyde, said Mishan. It was de- as well as salons across the country. veloped with Kathleen Croddick, She assured that Simply Smooth Touch chief executive offi cer of contract of Keratin is made in the U.S. and cer- cosmetics and personal care man- tifi ed to work within the safe levels es- ufacturer Suite K. tablished by the Cosmetic Ingredient The process begins with the Simply Smooth’s Review and Health Canada. provided Keratin Earth Shampoo Touch of Keratin. — ANDREA NAGEL and Protein Conditioner, fol-

COCOLADA KERATIN TREATMENT BY RIO DE KERATIN KERATINPERFECT Smoothing Treatment. After waiting 10 minutes Cocolada Keratin Treatment aims to give women the same Eager to play in the burgeoning at-home keratin for the formula to penetrate the cuticle, the user freedom that boxed hair dye has for decades with an at-home market, Sephora took the category into its own blow-dries her hair, followed by a thorough fl at hair smoothing treatment. hands this year and tapped a Delray Beach, Fla., ironing. Loria recommends users wait 48 hours “I created the professional Lasio line for salon use only,” salon manufacturer to make KeratinPerfect, the before shampooing or getting hair wet or doing said Nadine Ramos, chief executive offi cer of Lasio, who also retailer’s exclusive at-home hair smoothing sys- anything that will make an impression on the hair, operates the Lasio Studios salon located at 117 East 7th Street tem, which Sephora designed inside and out. such as wearing an elastic. in Manhattan. But, she acknowledges the salon treatment is not What claims to make KeratinPerfect different KeratinPerfect is getting its own end cap at for everyone: It is time-consuming and expensive, with prices from others, said Lisa Loria, national educational Sephora beginning May 12. Three different kits starting at $250 and up for Keratin Tropic. director for the brand, is that it is the fi rst to con- will be sold, priced from $65 to $235, depend- She does not expect the Cocolada Keratin Treatment to tain salon-quality keratin. ing on the items in a kit (the most pricy includes compete with Lasio’s professional service, as it reaches a dif- “If you look at what is going on with do-it-your- a titanium flat iron, for example). Shampoos, ferent consumer. “ Yo u have the woman who isn’t going to the self keratin treatments, they are much lower-end, conditioners and after products are also sold à salon,” said Ramos. like at-home color treatments, where it’s $9.99 a la carte, such as KeratinPerfect PerfectShine Lasio has been testing the at-home box,” she said. “We have taken salon-grade keratin Keratin Oil, KeratinPerfect PerfectRenew Daily treatment for more than a year, and Cocolada and use the same content used in salons. Our for- Keratin Replenishing Spray and KeratinPerfect the company maintains it’s formula Keratin mulas are primarily keratin-derived from sheep’s PerfectRescue Intense Keratin Repair Serum, is gentle enough for pregnant woman Treatment wool so they have hair health in mind fi rst and which will sell for $35 and $40. and children. It can also be used on foremost.” Loria added that wheat and soy pro- — A.N. colored, highlighted and chemically teins, provitamin B5 and argan oil relaxed hair. The formula relies on are also ingredients in formulas. the active ingredient Germaben 22, a KeratinPerfect uses KeratinPerfect liquid preservative commonly found ReBonding Technology, which in shampoo and conditioner, accord- the fi rm said “works to fi ll and

ing to the company. repair weak keratin bonds” — CHINSEE The process begins with to fi ll in rough, dry crevices that Cocolada Shampoo (no condition- make hair appear frizzy and dull. GEORGE

er), a blow-dry, an application of The PerfectHair 30-Day Brazilian BY the spray treatment, another blow- Hair Smoothing System does not dry with a paddle brush, followed break hair bonds, said the fi rm, by the fl at iron. Some 24 hours later, but instead “smooths and nour- users wash their hair using the ishes” to make blow-drying and shampoo and conditioner provided styling easier. and hair is said to be free of frizz The process starts with the and full of shine for one month. PerfectPrep Pre-Treatment PHOTOS EARTH KERATIN The $75 kit is available on Clarifying Shampoo, a towel-dry, Folica.com and Rdkhair.com. and then the comb-in applica- — M.P. tion of ThePerfector 30-Day Hair COCOLADA AND GREEN LIGHT:

A look at a crop of fashion brands perfect for Earth Day today. WWDSTYLE PAGE 10 “Your Self-Portrait” by Kim Gordon. MeMo pad

OUT OF THE STARTING BLOCKS: So far, so good for Hugo Lindgren and Sally Singer. The New York Times’ magazines saw “double-digit” increases in ad revenue in the first quarter, said Times Company chief executive Janet Robinson in an earnings conference call on Thursday. She credited Times magazine editor Lindgren’s relaunch and redesign, which started in early march, for encouraging a “strong showing” from advertisers, particularly in health care, real estate and financial services. robinson said there was “growth” in Singer’s T magazine, as well. Ad pages were up 10.5 percent in the first quarter, according to the publishers information Bureau. The magazines’ total ad pages — 509 — return it to first-quarter 2009 levels, but that total is still well behind ad performance in 2008, when the magazine group had 858 pages in the first quarter (back then, the Times published the quarterly play and the weekly magazine had a bigger trim size). But it’s a good early sign for both Singer and Lindgren. Singer is out to maintain T’s financial success while executives hope that Lindgren can create a more hospitable environment for advertisers than the previous iteration of the weekly magazine. on the internet paywall front, robinson said that three weeks after the Times debuted digital subscriptions, the company already has 100,000 paying customers for its Web site. She said that since it’s “so soon after launch” there aren’t a lot of conclusions to draw from it. For instance, it’s too early to tell if this rate will continue or whether customers who are paying discounted prices now will renew once they have to pay full price for a digital subscription later. But robinson said that the number already exceeds internal expectations. She also said that declines to nytimes.com Web traffic are “within our expectations,” without offering specifics, and that print subscriptions have increased Wo r d Play since the launch of the pay model (print subscribers automatically get full access With an online sale of her work looming, Kim Gordon assesses the art world. to the Web site). The Times will also spend an additional $13 million on the and “Larry gagosian,” the works paywall for the rest of 2011, mostly on By VENESSA LAU feature gordon’s signature paint- promotional costs, according to robinson. splattered writing, similar to overall, the quarterly results ThErE’S No SToppiNg Kim gordoN, “The Noise painting” series she painted a familiar story for the Times: who’s equal parts rock star (literally), eye exhibited at New York’s John Total revenues, advertising revenues fashion muse, fashion designer and mcWhinnie @ glenn horowitz and circulation revenues were all artist. Next week, the Sonic Youth Bookseller and Art gallery last down 4 percent. Net income dropped chanteuse — who studied at L.A.’s otis summer. Back then, WWd visited 57 percent to $5.4 million, down from College of Art and design and wrote her at her Northampton, mass., $12.8 million last year.

for Artforum in the Eighties — is set to and home, to dish art and fashion. Executives also mentioned that in

unveil two new paintings exclusive to eL Almost a year later, we’re catching the last four years the Times Company art retail site Exhibition A (co-founded up with the multihyphenate gordon has cut $850 million out of its cost base. by Cynthia rowley, Bill powers and again. on the agenda this time: — JOHN KOBLIN Laura martin), which is selling 50 Lexie Mor more art and more fashion — and, of limited-edition prints of each starting course, gagosian.

Wednesday. Named “Your Self-portrait” Photo by {Continued on page 12} {Continued on page 12} 10 WWD FRIDAY, APRIL 22, 2011 WWD.COM L Church & State’s organic cotton sweatshirt and Susan Woo’s wood pulp- based Tencel trousers. Alkemie 100 percent reclaimed metal jewelry, Dutzi burlap and recycled leather clutch. FASHIONSCENE WWD

H. Fredriksson works with Kusikuy, a knit production program that provides fair wages, safe workplaces, zero-interest loans Alkemie is and training programs designed by to knitters in Bolivia, Dara Gerson who use only fi ber and Ashley produced in Lowengrub. accordance with Each piece is the Organic reclaimed metal Trade Association. that is melted down, hand cast and crafted H. Fredriksson’s in their hand-knitted alpaca Los Angeles sweater dress over The Battalion’s cupro silk studio. lace dress. Tumbler & Tipsy’s hand-knit This dress is organic wool scarf; crafted in New Sticks & Stones Accessories sustainably York City from harvested maple rings recycled plastic trimmed with shed soda bottles that deer antlers and ebony are melted down wood; Artists and and refi ned Revolutionaries re- into the mesh- purposed leather bag, like fabric. and Naya vegetable- tanned polyurethane boots. L

Allison Parris’ recycled polyethylene dress and acrylic chain and cotton belt. Vegetarian Shoes microfi ber boots, A.D.O. cuff and bangles made of reclaimed metals. JASMIN TREGONNING ASSISTANT: FASHION USING NARS; GROUP LTD. WORK

High on Green JEN MYLES AT

L

Today is Earth Day and Organic by John Patrick’s recycled polyester trench MAKEUP BY more than one billion coat with Oeko-tex certifi ed cupro lining and shorts made of locally sourced, vegetable tanned leather, people now participate in worn with Samantha Pleet’s organic wool sweatshirt. related activities each year. Hunter rubber boots and Mi Asunta jewelry. Designers, such as those featured here participate Visit sourcemap.org/trace/organic-collection MANAGEMENT FOR REDKEN; year-round with their to map the journey of select garments from eco-conscious collections. ATELIER

Patrick’s fall-winter 2011 collection AT — Kim Friday from material to construction to retail. MICHELLE KAYLA HAIR BY

The High Line uses forest stewardship council-certifi ed ipe hardwood that was sustainably harvested PHOTOS BY from a managed forest, and almost 80 percent of the plant species in section 1 are native to New York. KYLE ERIKSON AT THE HIGH LINE O./VNY; MODEL: NATALIA WWD FRIDAY, APRIL 22, 2011 11 WWD.COM

decades, the bearded designer, who is for example, went online Thursday and the known for his outlandish fashion shows winning regional design will be worn by the Fashion scoops and playful designs inspired by pop culture, McLaren drivers during the qualifying round art, technology and ethnography, is head of at the German Grand Prix July 23. The final the Antwerp Fashion Department. He also victorious overall will be chosen from all CANNES CAN: You don’t have to wait until the small island where Diana is buried, studied at the school, graduating in 1980. the winning regional designs, and it is this couture week in July to see the first high- which sits on a lake in Althorp’s gardens. Titled “Walter Van Beirendonck, Dream racing outfit that both drivers of the Vodafone fashion dresses by the design studio of A spokeswoman for Clarence House the World Awake,” the exhibition will run McLaren Mercedes team will wear at the Christian Dior in the post-John Galliano era. described the item as “a speculative story Sept. 14 through Feb. 19, 2012. Formula One season finale in São Paolo. The atelier is in the throes of realizing two about an entirely private matter,” and Taking it a step further, the German fashion dresses — one inspired by an archival piece declined to comment. OH BABY: New York has Baby Buggy, and now giant has now also introduced a limited by the house founder — for Melanie Laurent. Los Angeles has its own stroller-set charity, anniversary Boss Black McLaren collection The hot French actress is slated to wear the IMAGE STAKES: The Bettencourt affair seems Baby2Baby. Nicole Richie, Julie Bowen, Jessica featuring polo shirts, sweaters, pants and couture creations on the red carpet for the to have done little to harm L’Oréal’s image. Alba, Jane Buckingham and Amy Greenspun jackets for men and women. The spring opening and closing nights at the Cannes The beauty behemoth remains one of the were among the 40 Hollywood moms who collection hit 800 stores in March and the Film Festival next month. top three best-reputed companies in France, came toting bags of diapers and bottles to winter range will be in stores in September. according to a recent survey assessing a cocktail party at Palihouse Wednesday SAVING ALLSAINTS: Principals at the British companies on the CAC 40 conducted by New night to celebrate incoming presidents LATEST LOOK: De Beers unveiled a revamped clothing retailer AllSaints are deep in talks York-based Reputation Institute in tandem Kelly Patricof (creative director of Satine’s Web site, available in five different languages with Goode Partners about a sale, and a with French communications agency I&E. in-house fashion label) and Norah Weinstein. worldwide. Boasting enhanced photos, decision could come as early as next week, L’Oréal slipped from second to third position “We are hoping to grow the membership images from the new print campaign and according to sources familiar with the versus the same survey in 2010, coming after and throw bigger events,” said Richie, who content from industry experts, the digital negotiations. “The next two to three days are Danone and Michelin, which held on to the is preparing to go to New York next week redesign is part of the jewelry company’s very critical,” one source said. Spokespeople No. 1 spot. Almost 4,000 people were polled for fittings of the gown she is designing for new brand identity. The updated site for AllSaints and Goode declined to comment on several criteria, including innovation, model Britt Maren for the Met Gala. “It’s features behind-the-scenes content and on Thursday. Goode, which has a stake in products and services, governance, pretty major,” she said. a bridal section providing advice for men Intermix, is said to be working alongside citizenship, employment and performance seeking the perfect diamond for MSD Capital, which was started in 1998 and and leadership. L’Oréal’s worth-it factor their future fiancées. A social is the investment arm of Michael S. Dell. diminished in a couple of categories, such media functionality also allows Earlier this year, Goode had been working as governance and citizenship. LVMH fans to “Like” any product on the with M1 Group, a fund run by the Lebanon- ranked fifth overall, but came tops in the site, which gets directly linked to based Najib Makiti, on a bid for AllSaints. leadership stakes. their Facebook profile. “The new According to sources, Goode already has debeers.com and the accompanying a stake in AllSaints that it is seeking to FLORIDA MAN: Brunello Cucinelli is no longer digital campaign mark an protect. MSD Capital could not be reached a stranger to South Florida. The designer important step in our journey to for comment at press time and it is unclear touched down in the tropics for two days of firmly establish ourselves as the whether MSD Capital is still taking part in soirees, first at his Bal Harbour boutique. quintessential diamond jewelry the talks to acquire AllSaints. The 1,800-square-foot location lies on the brand,” said François Delage, AllSaints has been forced to restructure large size for his fleet of 45 monobrand chief executive officer of De Beers following the collapse of the Icelandic bank stores including seven in the U.S. Bal Diamond Jewellers. Kaupthing, which held a majority stake in Harbour and Vegas opened in summer the company through loans of a reported 2010, with South Coast Plaza, his second in Hugo Boss iis iinviitiing consumers YOUTH MOVEMENT: Construction of $532.2 million, which the company used California, slated for mid-April. to dress McLaren driivers.. the Louis Vuitton Foundation for to fuel its rapid international expansion. Cucinelli has good reason to keep his Creation in Paris’ Bois de Boulogne Ernst & Young, the accountancy group, eye on the region. He has a cult following IN THE DESIGNER’S SEAT: To help celebrate is due to resume imminently after having has put Kaupthing’s U.K. division into through department stores like Neiman the 30-year partnership between Hugo being halted by the city’s administrative court administration, the U.K. equivalent of Marcus in Coral Gables, and Saks Fifth Boss and the McLaren Formula 1 racing in late 2010. The court annulled the museum’s Chapter 11, and — separately — has been Avenue in Palm Beach and Naples, where team, Hugo Boss is inviting consumers to construction permit following an appeal by dealing with AllSaints, trying to find it new he also has been so well-received at Marissa design the racing overalls worn by McLaren the Coordination pour la sauvegarde du Bois investors. If AllSaints does not find a buyer, it Collections for 25 years — a shop-in-shop drivers Lewis Hamilton and Jenson Button. de Boulogne organization (or Coordination too risks falling into administration. launched 2009. After Bal Harbour, he shot Using the interactive “Dress Me for the for the protection of the Bois de Boulogne across the Everglades to celebrate the Finale” configurator, which can be accessed organization). The city’s administrative WILLIAM AND KATE VISIT ALTHORP: As Prince designer mainstay’s 35th anniversary with a at hugoboss.com/mclaren, enthusiasts and court of appeals April 14 ruled LVMH could William and Kate Middleton’s wedding nears, cocktail party in his honor. design hopefuls will first be asked to pick resume work on the Frank Gehry-designed the British press are ramping up their their driver: Hamilton or Button. Using building, though laws concerning the coverage of the couple. On Thursday, HAIRY MOMENT: Honoring one of its more cut and paste, they can then choose color, construction permit still remain to be voted London’s Daily Mirror reported that the colorful local stars, the MoMu fashion form and design elements to create their through parliament over the coming months. couple had paid a visit to Princess Diana’s museum in Antwerp this fall will host the individual racing look, both front and back. Paris’ City Hall said that the site, which will grave at Althorp, William’s late mother’s first large-scale retrospective dedicated to The configurator will go into action 13 house a permanent art collection plus a family home. The paper reported that designer Walter Van Beirendonck. Boasting weeks before the Grand Prix in each country young artists’ residence, is expected to be William and Kate laid flowers at The Oval, an international career spanning three or region. Germany, Austria and Switzerland, completed on schedule for 2013.

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{Continued from page 9} TARGET’S CALYPSO CLIQUE: Calypso’s Lafayette Street location was converted into a pop-up shop for Calypso St. barth for Target, which will be available in 1,200 stores and target. com on May 1 through June 11. Unlike some Wo r d Play previous pop ups that were open to the {Continued from page 9} public, the one-day Calypso shop was strictly his work in Artforum, because until then nobody knew for the press. The multicategory offering WWD: What’s the backstory to “Your Self-Portrait?” who he was except around the L.A. punk scene. includes apparel, accessories, swimwear and Kim Gordon: bad Warhol-style Pop Art. I wanted to do lingerie for women, clothing for girls and something that related to the idea behind exhibition A WWD: Last time you told me you hated your handwriting. babies, and home items such as decorative — affordable art for people that has interesting ideas. It’s Have you changed your mind now that you’re making art pillows, poufs, dinnerware, glassware and the notion of an affordable commission for a self-portrait. out of it? metal candleholders, priced $7.99 to $29.99. K.G.: When I’m writing in a normal way, I think it’s “When you look at the brand, it’s about color WWD: And the Gagosian piece? bad handwriting. but if I have enough distance from and a luxury lifestyle,” said Stacia Andersen, K.G.: I was thinking of the dealer or gallery persona something, it doesn’t bother me. It’s the same with my voice senior vice president of merchandising, home surpassing that of the artist, the idea of brand name over sometimes. If I hear something I did a really long time at Target. “Our product [and] not being able to differentiate between ago, there’s enough distance from it that it doesn’t bother guests can aspire them. Perfume is the ultimate version of that because it’s me. but there is a trap in doing handwriting that is kind and relate to that.” so celebrity name-brand driven. People wanting to buy a of irregular. I need to find more ways to continue it being eighty members piece of work from a particular dealer the way consumers irregular without making it too mannered or stylized. of the media were like to buy from a certain store — it gives them confidence. invited, including WWD: What was the last art show you saw? representatives WWD: Do you know him personally? K.G.: I saw the John Knight exhibit at the of national K.G.: before Larry had a career as Greene naftali Gallery. He’s somebody broadcast, an art dealer, he had this business who was a big influence on my work. His online, print, selling prints, these mass-produced, work is very in situ, influenced by the long lead and pretty schlocky prints. My friend and context of the gallery. You know, I’m doing bloggers. each I worked for him, framing them. This these paintings, but it’s not like I see editor received was in Los Angeles in early 1971. We myself as a painter. I want to go back to a $50 Target gift framed hundreds in a day. And then doing more installation work. card to shop the when I moved to new York, Larry collection. It had a gallery with Annina nosei, WWD: Any upcoming installations then? seemed that most though they couldn’t have it open to K.G.: I’m reviving an art project I did in the — Target declined the public because it was in some co- early eighties called “Design Office.” [The to comment — had op on West broadway. I worked for work] takes on the role of interior decorator- baskets totaling more than $50 and had to fork Annina basically — I think this was psychologist to create an in-situ intervention over a credit card. in 1980, before she started showing with a space-client or gallerist. I’m really The Calypso St. barth Target’s Jean-Michel basquiat — and was interested in the psychological aspect of collaboration is Target’s first cross-category supposed to be the receptionist, space and the relationship between gallerist partnership since its Liberty of London one although I didn’t know how to type. Gordon’s “Larry Gagosian.” and artist and that sort of thing. in March 2010. — SHAROn EDELSOn That’s where I met richard Prince. He brought in his watch photos and they were in these WWD: Where and when is this happening? MEn In GRAY: Man About Town, a Paris- metal frames that I was very familiar with. I sort of gave K.G.: I can’t really say right now. There’s this space based biannual men’s title edited by Philip him a hard time, jokingly, about them. uptown that I’m interested in, but I don’t want to name. Utz, saved oodles on retouching and color printing with its spring/summer issue, WWD: Have you done similar paintings of other gallerists? WWD: Any news on the fashion front? which hits newsstands next week. It’s K.G.: Yes, it’s part of a series. There’s also a barbara K.G.: I have a small collaboration with Surface to Air that devoted to Hedi Slimane’s Los Angeles and Gladstone and a reena Spaulings. but I don’t have any comes out next spring. It’s going to be about five or six pieces. is filled with his signature black-and-white thoughts right now about doing a huge collection. Though photography, from the lined face of Brian if somebody wants me to do one for them, I’ll do it. WWD: Since you’re so tied to the fashion and art worlds, Wilson on the cover to his more familiar what are your thoughts on the recent talk about fashion cast of skinny youths, including Agyness Deyn WWD: You’ve done word paintings based on song lyrics, not belonging in museums? in full tomboy mode. Slimane also rounded names of underground noise bands and random phrases, K.G.: It just depends on the nature of the show. I mean, up a cast of cultural movers and shakers but is this your first time doing people? designers like [Kate and Laura Mulleavy of] rodarte, I across the indie and legend spectrums, K.G.: I did a raymond Pettibon one a couple of years would say yes, they could be in a museum. And, I mean, from music mavens Wavves and beck to the ago — that was the first. We met a long time ago in L.A. museums always want to bring people in and do crowd- writer Gore Vidal and artist John Baldessari. He was just kind of around the scene. His brother is pleasing shows. In some ways, I don’t see why fashion would The 268-page issue features cheeky Greg Ginn [of the band black Flag] and he would use be any different than some of the shows they do already. I interviews with designers Rick Owens and raymond’s drawings for the album covers. I think kind of feel like fashion is taking over everything anyways. Giorgio Armani and many fashion shoots with I was actually the first person to write about It just depends on what and how interesting the ideas are. scant amounts of clothing. eye Ellen Pompeo Selma Blair J.J. Abrams’ Star Checks “I’ve never been to one of these before,” said J.J. Abrams of the Coach shopping party he hosted with wife Katie McGrath on Wednesday night. Held on the rooftop of his Santa Monica-based production com- pany bad robot, the event, benefitting the Children’s Defense Fund, was “the first of hundreds of shopping parties to be held here,” the “Star Trek” director joked. “Although this place doesn’t quite have the history of the Chateau Marmont.” The event drew an Oscar week-worthy crowd, including Abrams’ onetime “Alias” star Jennifer Garner, who just wrapped promotional duties for her film “Arthur” and is now, she said, “Glad to be home and taking care of my actual life.” Also checking out the bags were Amy Adams, Scarlett Johansson, Selma Blair, Camilla Belle, Joy Bryant, Rosario Dawson, Emma Roberts, Amber Heard and Abrams collaborators Zoe Saldana, Chris Pine, Scott Speedman and Taraji P. Henson. Saldana is taking a page out of Abrams’ book by directing her first project, three Webisodes for a Vin Diesel project with her sister, Cicely. “For the chance to direct, as sisters, we were like, ‘Hell, yes we’ll do it,’” she said. Some also took the opportunity to network. “I just saw ‘The Fighter,’” Abigail Spencer told Adams. “You were amazing in it.” Most guests came away from the event toting shopping bags full

sardella donato of purses they had actually purchased.

by Scarlett Johansson “I’m a girly girl,” said Henson. “I just love to shop, and this was for a Zoe Saldana and J.J. Abrams good cause. I don’t have to explain that one to my business manager.” in Roland Mouret. t photos — Marcy Medina