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Fringe Group MILAN — Move Over, Roxie Hart

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Fringe Group MILAN — Move Over, Roxie Hart ACCESSORIES/LEGWEAR AMERICANA MANHASSET EXPANSION ROLLS AHEAD/4 SECTIONInside: II IN DEPTH WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • March 31, 2003 Vol. 185, No. 64 $2.00 Accessories/Innerwear/Legwear Fringe Group MILAN — Move over, Roxie Hart. The flapper dress is back, and you’ll have plenty of rivals for naughtiest singer/dancer/actress for fall. At Dolce & Gabbana, for example, Domenico Dolce and Stefano Gabbana toned down their seductress motif for day, mixing it with techno elements, but they kept it high voltage for evening, especially in the Twenties-inspired looks. Here, their fringed flapper dress. For more, see pages 6 and 7. Industry Anxiety Rises As Threatening Virus Spreads Through Asia he spread of the mysterious pneumonia virus in Hong TKong and southern China has begun to wreak havoc on the areas’ vital textile and apparel industries, while American industry executives grow increasingly nervous about traveling to the region. The World Health Organization advised travelers to avoid the region unless absolutely necessary and many countries issued travel advisories to their citizens. As of Friday, the outbreak of atypical pneumonia, or Severe Acute See SARS, Page10 PHOTO BY PHOTO DAVIDE BY MAESTRI 2 Charron Reaps Sharp Pay Hike WWDMONDAY Accessories/Innerwear/Legwear By Evan Clark some bang for their buck, though. still has a long way to go to top of Over the fiscal year ended Dec. the hill. Tommy Hilfiger took that NEW YORK — Paul Charron’s 28, the firm’s stock jumped about spot in 2001 with compensation of GENERAL pay rose more than his compa- 18 percent while the Standard & $24.9 million. FASHION: Brush up on the Charleston. Flapper looks are back, with beaded ny’s stock last year, and the stock Poor’s 500 sank 24.6 percent. For 2002, as reported, Levi 6 dresses; side-wrap, fur-collared coats; cloche hats, and lots of fringe. did just fine. The increased stock price Strauss & Co. ceo Phil Marineau The mysterious pneumonia virus in Hong Kong and southern China has The Liz Claiborne Inc. chair- does more for Charron than im- has already topped Hilfiger’s 1 begun to wreak havoc on the area’s textile and apparel industries. man and chief executive enjoyed prove his standing with investors, prior-year number with a $25.1 a 42.8 percent increase in his though. As of March 19, the ceo million paycheck, almost 15 Despite the soft economy, Americana Manhasset’s current expansion is WWD, MONDAY, MARCH 31, 2003 WWD, MONDAY, pay last year to $4.3 million, ac- carried 1.1 million shares of times what he earned in 2001. 4 part of an ongoing strategy to pump up its luxury appeal. cording to the firm’s proxy state- Claiborne, or 1 percent of the Any executives wishing to don Tod’s 2002 net income dropped 2.5 percent to $38.3 million on a 12.5 ment filed with the Securities outstanding common stock. the compensation crown in the 2 percent sales increase to $382.8 million, satisfying its chairman. and Exchange Commission. For the year, Claiborne’s net future should consider a contract That’s a $1.3 million raise from income rose 20.4 percent to $231.2 that links compensation to sales. SECTION II: Accessories/Legwear In Depth is included in this issue. the $3 million he made in 2001, million, or $2.16 a diluted share, Hilfiger beat out the pack in 2001 Classified Advertisements ..................................................................14-15 before restricted stock awards from $192.1 million, or $1.83, last with an annual salary of $900,000 To e-mail reporters and editors at WWD, the address is valued at $2.2 million. In 2000, he year. Sales ascended 7.8 percent plus 1.5 percent of the net sales [email protected], using the individual's name. pulled in a total $3.1 million. to $ 3.72 billion from $ 3.45 billion. of TH USA and its subsidiaries SUBSCRIPTION RATES Charron’s salary last year rose Charron ranked 11th in WWD’s over $48.4 million. U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. 3.4 percent to $1.2 million while listing of the top apparel manufac- Number two on the 2001 list was All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. the big rise came in the execu- turers’ salaries for 2001. While last Hilfiger ceo Joel Horowitz with Please allow 6-8 weeks for service to start. Individual subscription information/Single Copy Sales : (800) 289-0273; outside U.S. (818) 487-4526; new group subscription information 212-630-4196 tive’s bonus, which at $1.9 mil- year’s boost in compensation compensation of $12.7 million. Postmaster: Send address changes to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. lion tallied a 99 percent upswing. bodes well for his position among Rounding out the top three was WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue every month except July, and two additional issues in April and August, by Fairchild Publications, Inc. Shareholders apparently got the most highly paid in 2002, he Ralph Lauren with $6.6 million. a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., a subsidiary of Advance Publications Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage or retrieval system, except as may be expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 Periodicals postage paid at New York, NY and other offices. Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9 Despite Strong Sales, Tod’s ’02 Net Falls GST # 88654-9096-RM 0001 Canada Publications Agreement # 40032712 Printed in the U.S.A. All signed articles published in the paper represent solely the individual opinion of the writer and not those of By Luisa Zargani depreciation and amortization European sales gained 16.6 WOMEN’S WEAR DAILY. grew 13.9 percent to $98.1 million, percent, while those in Asia and For Web site access, log on to www.WWD.com MILAN — Tod’s 2002 net income representing a 25.6 percent mar- the rest of the world grew 25.5 dropped 2.5 percent on a 12.5 gin on sales. Earnings before in- percent. MONDAY: Tarrant Apparel’s fourth-quarter earnings. percent sales increase, but the terest and taxes grew 12.7 percent In a phone interview, Macel- slightly weaker profit showing to $67.6 million, representing 17.7 lari said it was difficult to make TUESDAY: Los Angeles Fashion Week (through Monday). was attributed to financial items percent of sales. The margin rep- any projection for the current rather than any lessening of its resented “slight growth” com- year. “We are cautious,” he told WEDNESDAY: Filo yarn fair, Cernobbio, Italy (through market strength. pared with the year before, WWD. “This is a difficult moment Friday). Diego Della Valle, chairman, notwithstanding hefty amortiza- to read, since the market and the pronounced himself satisfied with tion costs related to the expansion economic situation are worsened FRIDAY: The Labor Department releases the February net income of $38.3 million and of its retailing network and the by the war. We have reevaluated employment report. sales of $382.8 million last year. opening of direct stores. Dollar our strategies and believe they Moda Made in Italy International Trade Fair for “The 2002 results are certainly figures are converted from the are still valid. After all, this mo- Shoes, Munich (through Sunday). positive for the group and are euro at current exchange rates. ment is bound to pass.” among the best, relatively speak- Emilio Macellari, chief finan- Macellari said he felt Tod’s SATURDAY: The National Bridal Market, Chicago ing, in the luxury goods industry,” cial officer of the company, said products were performing well, (through April 8). said Della Valle in a statement. that sales of the Tod’s brand grew in part, because “they are classic “This performance affirms the 8.5 percent last year, while Fay but in step with fashion. So they COMING THIS WEEK health of the group.” and Hogan leaped 28.6 percent are not considered too trendy The company attributed the and 11.4 percent, respectively. and are not quickly out of style. drop in net income to a drop in Della Valle said the group’s They may cost more, but they last interest income compared with brands “remain strong and have longer and are easily worn on In Brief 2001, when it benefited from in- a great potential for growth.” more than one occasion.” terest on its initial public offering Sales in the U.S. were up 2.7 In 2002, the group’s work- G LIZ CLAIBORNE TAPS TWO, INTERNATIONALLY: Liz proceeds, as well as a higher tax percent, but would have expand- force grew by 200 people to 1,715 Claiborne Inc. has appointed Patricia J. Royak as president of Liz burden in 2002. ed 6 percent if not for the weaken- employees, and the cost of labor Claiborne Europe and Patricia Williamson as president of Earnings before interest, taxes, ing of the dollar against the euro.
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