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G LOG ON TO OUR WWD.com PEOPLE FROM WEB SITE WHERE OUR NEW LOOK YOU’LL FIND: G WE THE TOP G EASIER NAVIGATION TO TOP SECTIONS G HEIGHTENED PRESENCE OF VISUALS KNOW DOWN G FASHION SCOOPS FRONT AND CENTER COTY’S MICHELE G BETTER ACCESS TO ALL PUBLICATIONS RAG & BONE CALLS ON SCANNAVINI OUTLINES FRIENDS AND FAMILY REORGANIZATION. FOR SHOW. PAGE 10 PAGE 3

GLOBAL STOCK TRACKER LAUNCHES Valuing the Brand: Fashion’s Foremost

By EVAN CLARK

BE BIG OR BE FAST. The most valuable and dynamic fashion and THURSDAY, JULY 10, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY beauty companies in the world are either one or WWD the other. That is one of the key takeaways of the WWD Global Stock Tracker, which launched on WWD. com Wednesday and puts 100 of the most impor- tant fashion, retail, luxury and beauty stocks in one place and — after a currency translation — on the same playing fi eld. Millions of investors vote every day — from New York to Hong Kong to Paris — collectively de- ciding who’s on their way up and who’s on their way down. It’s a never-ending distillation of every- Goddess thing that makes up a business, from branding and distribution to management and marketing. The verdict? Competition is fi erce and sheer size offers effi ciencies of scale and market might that helps the big stay big and grow bigger — albeit In the at a slower pace than some of their scrappier com- petitors. There are a host of companies that still have speed and momentum on their side, from Michael Kors Holdings Ltd. to Under Armour Inc., that are being richly rewarded by investors. By market capitalization — the value of all of Details a fi rm’s outstanding shares at the current price For their Valentino couture collection, Maria — Wal-Mart Stores Inc. is the most valuable Chiuri and Pierpaolo Piccioli channeled a pre- company playing in the fashion sphere, weigh- Raphaelite goddess. That muse manifested ing in at $247.09 billion. Beauty giant Procter & Gamble Co., a big Wal-Mart supplier, ranks as many splendid looks, some that were utterly number two, with a market cap of $217.99 bil- plain and others decorated lion. Then there’s a big fall-off in terms of size. in intricately gorgeous L’Oréal SA comes in at number three at $104.33 billion. (Market caps of companies trading on motifs such as this SEE PAGE 8 embroidered tulle COUTURE gown, its bodice crisscrossed in American Apparel leather strips. For PARIS more couture, see FA L L 2 014 Latches on to Lifeline pages 4 to 7. By VICKI M. YOUNG

AMERICAN APPAREL INC. is out of crisis mode. American Apparel and Standard General — along with company founder Dov Charney — have reached an agreement that would give the retailer up to $25 million in funding, provide for a reconstituted board and give Charney the temporary title of strategic consultant. Standard General’s aid would help shore up the retailer’s fi nances, as well as pay the $10 million owed to Lion Capital. Under the terms of the “Standstill and Support” agreement, the New York-based hedge fund — along with Charney — also agreed not to acquire any ad- ditional shares in American Apparel and limit their vote to no more than one-third of the company’s shares on any issue put to stockholders. Their re- maining shares would be voted proportionately to the vote of other shareholders. They also agreed not to solicit proxies in connection with the common stock or form or join any group with respect to the stock. The standstill agreement remains in effect until American Apparel’s 2015 annual meeting, accord- ing to a regulatory fi ling with the Securities and Exchange Commission Wednesday. Further, an independent board committee will be formed to oversee the continuing investigation into the alleged misconduct by Charney. The SEC fi ling said the committee members will include cochair- man David Danziger, one Standard General designee and one joint designee. Charney will serve as consul- tant until the end of the investigation. His role after PHOTO BY GIOVANNI GIANNONI SEE PAGE 2 2 WWD THURSDAY, JULY 10, 2014

Diesel Sues Cybersquatters THE BRIEFING BOX they are buying a Diesel-quality product,” said IN TODAY’S WWD By ARNOLD J. KARR Renzo Rosso, founder of Diesel and its parent com- pany, OTB. “In addition, these Web sites damage DIESEL HAS DRAWN a thick line in the granular the brand’s reputation and goodwill, hindering the sands of cyberspace. distinctiveness of authentic Diesel products’ trade- Backstage at The Breganze, Italy-based denim and sportswear mark quality and craftsmanship.” Elie Saab’s brand has filed suit in U.S. District Court for the In addition to injunctive relief, the plaintiffs are couture show. Southern District of New York charging nine de- seeking treble damages for all losses suffered by For more, see fendants with selling counterfeit Diesel products Diesel and all profits derived by the defendants, plus WWD.com. through a network of 83 different Web sites, all attorneys’ fees. Alternatively, Diesel is asking for using the Diesel brand in their domain names with- damages of $30 million per defendant, or $270 mil- out authorization and all but three of them using lion, and $2 million for each of the 14 trademarks al- the word “jeans” as well. legedly infringed, or $28 million, plus costs of the suit. Each faces nine counts ranging from trademark Diesel has recently picked up the pace of efforts counterfeiting, trademark infringement, trademark to combat counterfeiting and cybersquatting. Last dilution, unfair competition and violations of the fed- year, it said, more than 70,000 counterfeit Diesel eral Anticybersquatting Consumer Protection Act. products were seized by Chinese customs and an- ACHARD The defendants are referred to as “John Does other 35,000 by European customs officials, who 1-9” as the identities of the individuals or entities withheld another 15,000 products during the first involved aren’t known. six months of 2014. DELPHINE But Diesel said that it engaged OpSec Security This year, an online brand protection program BY

to untangle the vast network of Web sites and found has been instrumental in shutting down 120 infring- PHOTO nine “infringing families” behind them. The larg- ing sites, blocking more than 1,000 sellers and re- est, described in court papers as “Infringing Family moving about 400,000 items. 2,” controlled 45 of the sites while three of the nine In recent years, brands including Ralph Lauren, The most valuable and most dynamic companies in fashion supervised just two each. Some of the site names The North Face, Tory Burch, MAC Cosmetics, the and beauty are either big or fast. PAGE 1 were straightforward, such as buydieseljeansonline. Estée Lauder Cos. Inc., Coach, Gucci and Salvatore net, while others suggested geographic origins (die- Ferragamo have prevailed in cybersquatting suits, American Apparel and Standard General have reached seljeansoutletuk.com) or suggestions of the brand’s and True Religion Apparel Inc. was rewarded an agreement that would give the retailer funding and Dov heritage (dieseljeansclassic.net). Those still in oper- $863.9 million in damages in a case against 106 PAGE 1 ation made extensive use of Diesel’s logo and other Chinese cybersquatters in 2012. Charney the title of strategic consultant. trademarks, 14 of which were cited in the suit, al- While collection of damages is in most cases im- though court papers pointed out that, based on a re- possible, the suits have accelerated the shutdown Diesel has filed a suit charging nine defendants with selling PAGE 2 view by a Diesel USA employee, the products being of offending sites and at least slowed efforts by of- counterfeit Diesel products. sold weren’t authentic Diesel merchandise. fending parties to resume operations, even if under Diesel’s official Web site can be found at diesel.com. another brand name. Coty Inc. has begun to implement a massive reorganization “The unlawful use of Diesel trademarks to sell The plaintiffs are seeking a jury trial in a case aimed at transforming the global beauty player. PAGE 3 counterfeit goods through various retail Web sites assigned to Judge Kimba Wood. around the world injures our customers who think Arent Fox LLP is serving as counsel for the plaintiffs. Apple commands about 53.3 percent of mobile smartphone orders, followed by Samsung at 30.5 percent, according to analytics firm Custora Pulse. PAGE 3

Ralph Lauren Corp. named Malcolm Carfrae global head of American Apparel, Standard Ink Pact communications, public relations and media. PAGE 3 {Continued from page one} vote either the new shares or the 27.2 percent he Kim Kardashian was reunited with Valentino Garavani, who in that will depend on the committee’s findings, and initially owned without the hedge fund’s consent. May hosted a pre-wedding brunch for her and Kanye West, at the committee will determine what capacity, if any, While investors appeared to be in agreement the Valentino couture show in Paris on Wednesday. PAGE 7 with the new source of funding, it wasn’t immedi- would be appropriate for Charney. In turn, the SEC filing said Charney has agreed ately clear whether all lenders were on board. Rag & Bone presented its spring men’s collection in not to “interfere with or attempt to influence the On Monday, American Apparel in a regula- PAGE 10 outcome of the investigation, or access the com- tory filing with the Securities and Exchange Manhattan in an unconventional manner. pany’s computer system.” As consultant, he will Commission said it received a notice of default continue to receive his base salary, but will have from Lion in connection with a credit-loan agree- Ovadia & Sons will launch Ovadia +, a new collection of no supervisory authority over any employee of ment dated May 22, 2013. That agreement allows athletic-inspired performance apparel. PAGE 11 the company. for the acceleration of the maturity of the loan The reconstituted board still comprises seven and other outstanding obligations under the credit Derek Jeter has teamed with Movado Group on a trio of members, with cochairman Allan Mayer and agreement. According to American Apparel, Lion watches, called The Captain Series. PAGE 11 Danziger staying on. The balance would consist of Capital said the reason for the default was that three members appointed by the hedge fund and Charney has ceased to be ceo of the company. Tommy Bahama has named Bradley O’Brien executive vice the other two to be mutually agreed upon between American Apparel in the filing disputed president of design and product development. PAGE 11 Standard General and American Apparel. All but Lion’s claim, and said it would contest the valid- one of the board members are expected to be inde- ity of the acceleration. ON WWD.COM pendent directors, as well as be unaffiliated with The retailer already is in talks with its revolving either Standard General or Charney. Charney will credit lenders for approval to pay all amounts due not serve as a board member. to Lion. The terms of the revolving credit agree- BACKSTAGE BEAUTY AT ELIE SAAB COUTURE: “Mr. Saab “This truly marks the beginning of an important ment do not currently permit the repayment of the wanted a powerful eye, very feminine, very sophisticated, but new chapter in the American Apparel story,” said loans to Lion. very soft at the same time,” said makeup artist Tom Pecheux Mayer. “With the support of Standard General, we With the financial crunch stabilizing and before the Elie Saab couture show. For more, see WWD.com. are confident the company will finally be able to re- Charney’s role temporarily resolved, financial sourc- alize its true potential.” es said that Standard General’s presence will keep Danziger said, “The last few weeks have been dif- potential buyers who were kicking the tires at bay. ficult ones for the company, and we are especially When Charney was dismissed by the company he FOLLOW US ON SOCIAL MEDIA indebted to our special committee members Robert founded last month, there was immediate concern @ WWD.com/social Greene, Marv Igelman and William Mauer, who have that American Apparel might need to file for bank- worked so tirelessly on the company’s behalf.” ruptcy or find a buyer, given that it has a debt load TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. Danziger added that “Any success the company of about $250 million — not to mention what was WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. enjoys in the future will in large part be the result then the uncertainty of whether Lion Capital would COPYRIGHT ©2014 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. of their efforts.” seek immediate repayment of its $10 million loan. VOLUME 208, NO. 7. THURSDAY, JULY 10, 2014. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and Executives at Standard General did not return a Would be buyers who once considered acquir- two additional issues in February and September) by Fairchild Fashion Media, which is a division of Advance Magazine call for comment. As part of the agreement reached ing the company — but walked away because they Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, with American Apparel, it has agreed to publicly af- didn’t want Charney at the helm — began taking a Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, firm the company’s “sweatshop-free, ‘Made in the second look. Investment sources said that even if NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P. O . Box 503, RPO West USA’” manufacturing philosophy and to maintain Charney ultimately has no future role at the com- Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P. O . Box 6356, the manufacturing headquarters in Los Angeles, pany as ceo, the presence of Standard General and Harlan, IA 51593. FOR SUBSCRIPTION, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 6356, Harlan, IA 51593, call 866-401-7801, or email customer service at wwdPrint@cdsfulfillment.com. according to the SEC filing. the newly constituted board now has everyone on Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address Standard General last week teamed with ousted the sidelines likely through next year until the changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. founder Charney. Charney was removed as chair- standstill agreement runs out. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with man and chief executive officer pending an internal That’s good news for American Apparel. Without your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be investigation of certain matters. Charney has taken further distractions, the team there now, including mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request the company to arbitration for what he said is a John Luttrell, the company’s chief financial officer to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. For reuse wrongful dismissal. and also interim ceo, can get back to the business of permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.wwd.com/subscriptions. The joining of the New York-based hedge fund fixing the chain. Occasionally we make our subscriber list available to carefully screened companies that offer products and services that we and Charney has led to Standard General con- Shares of American Apparel closed up 1.1 per- believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P. O . Box 6356, Harlan, IA 51593 or call 866-401-7801. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR trolling 44 percent of American Apparel’s stock. cent to 85 cents in Big Board trading on rumblings DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED Standard General acquired 27.4 million shares, and a deal with Standard General was at hand, and then TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, then loaned Charney nearly $20 million to acquire rose 3.6 percent to 88 cents in after-market trading UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND those shares. In protecting its stake, Charney can’t following the SEC filing confirming the agreement. OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. WWD THURSDAY, JULY 10, 2014 3 WWD.COM

Coty Streamlines as Part of Transformation

cent in emerging markets, ac- Steve Mormoris as chief market- lic relations as well as oversee By PETE BORN cording to the company. ing officer. He previously was in Michele Scannavini the newly created Center for Catherine Walsh, Coty’s chief charge of American fragrance Digital Competency. That unit COTY INC. HAS begun to imple- communications officer, said marketing at Coty Prestige. will work with the marketing ment a massive reorganization one of the many goals of the re- Johanna Businelli is the team while reporting to Walsh aimed at transforming the glob- organization is to nudge sales chief marketing officer of the in an integrated alignment. al beauty player by reinforcing from the emerging market clos- color cosmetics category, which Speaking of the category its growth track and strengthen- er to one third of the total. she previously managed. alignment, Scannavini noted, ing its leadership capability. Under the new plan, the Jill Scalamandre will con- “Now we have a more objec- The company, which has Coty Prestige and Coty Beauty tinue managing skin care as tive understanding of where 10,000 employee’’ s, is in the pro- alignment will be scrapped and the chief marketing officer of growth opportunities are.” He cess of dramatically changing replaced with a more vertical, that category. The fourth cate- added that the company is not from a business model consist- integrated model consisting of gory is body care, where Jurgen compromising on recognizing ing of two separate end-to-end Categories and Innovation on Scharfenstein is the chief mar- the specific needs of the indi- divisions — based on the dis- one hand and Global Markets keting officer. He was the senior vidual brands. He talked about tribution channels of mass and on the other. Scannavini said vice president of Adidas and accentuating “specificity” in prestige — to a more integrated the Categories and Innovation lifestyle fragrance marketing. maintaining teams with specif- and holistic alignment focusing division will house marketing, All the chief marketing officers ic skills to develop prestige and on product categories and geo- research and development and will report to Semerari. mass brands according to their graphic regions, while maintain- digital consumer insight, as well The Global Markets division individual DNA and market ing the prestige and mass dif- as the brands. He added that the will be headed by Jean Mortier, positioning. At the same time, ferentiation in brand building division will provide innova- who previously was president of however, the structure will and product development. “This tion for the product categories, Coty Prestige and will continue allow Coty to more accurately will be a simpler organization,” describing it as “the engine” for to report to Scannavini. This divi- gauge what kind of support said Michele Scannavini, chief brand development. The com- sion will consist of four regions, each brand needs and reinvest executive officer of Coty Inc., pany maintains that the new all headed by senior vice presi- profits and savings. Coty said dents. Marc Rey, who was region- JOEL HOLLAND PHOTO BY the new structure is expected al vice president of Coty Prestige according to local, specific con- to improve coordination and North America and president of sumer and retailer needs. resource allocation between We have come up with an Coty Prestige USA, will continue Françoise Mariez, senior vice markets and channels. It will as president of Coty USA as well president of marketing at Coty “allow us to get a deeper focus organization to fuel our growth. as senior vice president of North Prestige, is leaving the company and understanding of the cat- America. Europe will be headed to pursue new projects, accord- egory,” Walsh said. As a result, — MICHELE SCANNAVINI, COTY INC. by Stéphane Tsassis, who was se- ing to Walsh. Ralph Macchio, “you will get a sharper under- nior vice president, commercial, Coty’s chief scientific officer and standing of how to talk to and of Coty Beauty. Peggy Elsrode, senior vice president of global service the consumer.” adding that the new structure structure will provide a “more who was senior vice president, research and development, has Scannavini declared, “We will be “more rational, more in- holistic view of consumer evolu- commercial, for Coty Prestige, said he will retire in the second have come up with an organi- tegrated, more efficient and will tion and growth opportunities will head Asia Pacific, Middle half of the 2015 fiscal year. But zation to fuel our growth.” He eliminate redundancy.” by product category, resulting in East and Africa. Manlio Pizzorni, before leaving, he is expected added that the new blueprint, Previously, Coty, which a sharper innovation approach.” who was regional vice president to help Semerari build the cat- which was presented to the 50- to chalked up sales of $4.6 billion at Renato Semerari, previously of Coty Prestige for West/South egory and innovation organiza- 60-member leadership team on the end of the fiscal year on June president of mass market Coty Europe and the Middle East, will tion by installing R&D teams. Tuesday, “will make our organiza- 30, 2013, largely consisted of the Beauty, will lead the Categories be in charge of Latin America in Scannavini paid tribute to both tion simpler and more efficient.” select market division of Coty and Innovation division as the new division. Mariez and Macchio for their He predicted it will take six Prestige and the mass market ori- president. One of his tasks will Scannavini added that each “fantastic contribution” in help- months to a year to fully execute. ented Coty Beauty. The company be to synchronize the market- region will have its own back-of- ing to build Coty over the last 20 Scannavini said he cannot has 40 brands and the sales mix ing and R&D efforts. He will fice support in locations where years. As another aspect of the make predictions at this time as includes 54 percent fragrance, report to Scannavini. they are headquartered: New new structure, Walsh continues to how much the plan will save 15 percent skin and body care The compan’’y’s brands will York for North America, Geneva as head of corporate communi- and how much it will require and 31 percent color cosmetics. be housed in four product cat- for Europe, Singapore for Asia cation and in that capacity she for implementation. “My objec- A total of 74 percent of the sales egories. The fragrance catego- Pacific and Brazil for Latin will still report to Scannavini. tive is to be more explicit on were generated in the developed ry — including mass and class America. The goal of the new She will continue to handle ex- the earnings call at the end of world and the remaining 26 per- brands — will be headed by division is to steer the business ternal communications and pub- August,” he said.

Emmrich. Her last day at the Journal will be Friday. Calls and e-mails seeking comment from the Apple Leads in Mobile Orders MEMO PAD user interface, to hardware,” Times were not returned. Rosman could not be reached for comment. By RACHEL STRUGATZ Pierson said. “Their unit sales Rosman, who covered digital lifestyle for corroborate that. They are the CARFRAE JOINS RALPH LAUREN: Ralph Lauren Corp. the Journal, will be writing a monthly column THE MOBILE COMMERCE only brand that’s given Apple on Wednesday named Malcolm Carfrae global head and editing. She will essentially be filling the market is heating up and while direct competition over the of communications, public relations and media. editor role left open by Alexandra Jacobs, who was Samsung is coming on strong, past couple of years.” Carfrae, who starts on July 29, has been at Calvin promoted to fashion critic and features writer. Apple is still the go-to gateway Samsung, though, has further Klein Inc., where, over the past 11 years, he rose to Rosman’s appointment signals a bigger push to for shopping on the go. to go in the tablet arena. Apple’s the position of executive vice president and chief cover technology and digital, as the Times recently According to a report set to share of the tablet e-commerce communications officer. Prior, the Australia native moved technology writer Nick Bilton over to the be released by analytics firm business stands at about 80 per- was senior director at Bryan Morel PR in London. Styles section last month. — ALEXANDRA STEIGRAD Custora Pulse today, Apple com- cent, while Samsung’s is 12.5 per- At Ralph Lauren, he will be responsible for mands about 53.3 percent of mo- cent (up from 2 percent in 2012). areas such as global public relations, corporate GLAMOUR’S CONFERENCE CALL: Glamour is looking bile smartphone orders, followed Amazon, a relatively newcomer communications, internal communications as to launch a conference around its marquee by Samsung at 30.5 percent. to the tablet scene, makes up just well as celebrity relations, and, according to the Women of the Year Awards, WWD has learned. “That’s a lot closer than over 4 percent of tablet orders. company, will share oversight of social media According to sources, Glamour had begun we thought it was going to and global media planning. shopping around for different agencies such as be,” Corey Pierson, Custora “We are very pleased to welcome Malcolm to William Morris Endeavor, after news came out cofounder and chief execu- Ralph Lauren,” said David Lauren, executive vice that sister publication Vanity Fair would launch tive officer told WWD. In 2012, president for global advertising, marketing and a conference in San Francisco this October. Apple dominated the market $50B communications, to whom Carfrae will report. WME did not return calls or e-mails seeking with 75 percent of all smart- “Malcolm brings extensive experience in fashion comment. Glamour editor in chief Cindi Leive did phone orders, with Samsung AMOUNT SEEN BEING SPENT BY p.r. and a strong network of global editorial, provide WWD with this statement: “Women of coming in at just 12 percent. MOBILE SHOPPERS THIS YEAR. media and business relationships. We look the Year Awards is our marquee franchise and a Brands have been rushing to forward to having him on board.” powerful platform; naturally, we’re always looking grab mobile shoppers — which Carfrae will succeed Winnie Lerner, who will for strategic new partnerships for it, whether through are collectively expected to Almost half of traffic to e- remain with the company through the transition. “We print, digital, video, live events or broadcast.” spend $50 billion this year — commerce sites now comes from would like to thank Winnie for her leadership, her The glossy’s Women of the Year event typically but are faced with the decision mobile — or 47 percent as of the contributions in building our global team and her takes place in November at Carnegie Hall in New of where to focus their develop- first quarter. But it’s converting work in support of recent executive transitions, and York, and draws a crowd that includes celebrities, ment dollars. Currently, most mobile users into mobile shop- we are grateful she has agreed to remain with the business leaders, activists and philanthropists. brands chose to launch their pers that remains a big opportu- company for a short period to help ensure a smooth At parent company Condé Nast, there has been apps on Apple’s iOS first and nity for brands, Pierson said. transition,” Lauren added. — MARC KARIMZADEH a push to expand its digital video efforts via its then roll out Android versions, The conversion rate for mo- entertainment division run by Dawn Ostroff. which work on Samsung and bile users is significantly lower ANOTHER TO STYLES: The New York Times has Glamour’s potential move to launch a conference most other smartphones. than those who use a desktop. poached Katie Rosman from The Wall Street series would follow a trend among the magazine’s “Samsung is the only other On a desktop, the average con- Journal, WWD has learned. peers. Recently, Hearst’s Cosmopolitan said it would brand [besides Apple] that’s version rate of 4.3 percent is Rosman, who began her career at the Journal hold a two-day conference for young women in really done a great job of more than three times higher 10 years ago, joins the Styles section later this November. That event, which will take place in New putting together an effective than mobile’s, which is still month and will report to Styles editor Stuart York, is being produced by WME. — A.S. device — from branding, to just 1.4 percent. 4 WWD THURSDAY, JULY 10, 2014

Valentino Valentino Valentino

Paris CoutureFall 2014 PRE-RAPHAELITE GODDESSES, ELEGANT VAMPIRES AND THE RED CARPET MADE FOR MAGNIFICENT COUTURE INSPIRATIONS.

Valentino: Close your eyes. Now think, backstage. “That’s what we try to do.” Jean Paul Gaultier: Ask Jean Paul Gaultier modern pagan goddess. What comes to And so they did, to splendid effect. They to name some favorite vampire movies, mind? A toga-decked she-warrior? A took concepts with classical and religious and it’s like clamping onto a rich vein: priestly presence, co-opting elements resonance — tunic, chasuble, draping, Out spews titles including “The Fearless of ecclesiastical regalia? A nymph in gladiator sandal — and worked them Vampire Killers,” “Bram Stoker’s airy, glittering tulle? A glam, recently into numbers that radiated the power of Dracula,” “Interview With a Vampire” wed bombshell wearing natural assets gentility. Some were utterly plain, as the and the “Twilight” series. including, but not limited to, a big smile crepe tunics and gowns; others, done in “An elegant vampire in a luxurious and a dress slashed to there? unfussy intarsia motifs. Others still were jogging suit,” was how Gaultier described All of the above graced the Valentino crafted from rarefied materials, even by his fall couture show, marred by the truly show Maria Grazia Chiuri and Pierpaolo haute standards: A skirt and coat were frightening spectacle of an elderly model Piccioli delivered on Wednesday, the last, made from museum-worthy pieces of 17th- teetering and falling repeatedly from her located front-row rather than runway. Kim century tapestries. vertiginous heels. Kardashian sat bookended by Valentino Along the way, the designers showed Mindful that blood-sucking, undead and Giancarlo Giammetti, providing the lovely comfort with the Valentino creatures represent “an already rest of the crowd with terrific preshow woman’s sensual side. They wrapped theatrical idea,” Gaultier held himself viewing. That pop culture’s current uncorseted bodices in crisscrossed back, telegraphing the theme via the goddess of indiscretion — looking great leather strips, often in provocative black, white and red color palette and in her own way — was there to take in the contrast to the fabrics beneath, ghostly Marilyn Manson makeup. It was wares of a house now known for elegant including gorgeously embroidered tulle. an excuse to use blood-red pony skin and restraint made for some kind of contrast Conversely, they made quite a point of liquid jersey, and to show dramatic hoods — and an example of what’s wonderful daywear. A lavishly embellished coat- on a range of haute warm-up jackets in (and wonderfully absurd) about fashion. and-dress ensemble screamed haute, velvet, knitted fur, miniscule crystals and The designers channeled the pre- while a floor-sweeping mohair coat lace the color of cobwebs. These were fun Raphaelite era for their goddesses, preferred to whisper. — among the best items in the show.

GIANNONI GIOVANNI naming looks after Elizabeth Siddal Either way, there was a wealth The tailoring was dusty, if finely and Sibylla Palmifera. “We love the of clothes for the range of Valentino executed: mille-feuilles of organza idea that the artists looked to the past customers to love, maybe even Kim. sculpted into leg-of-mutton sleeves

PHOTOS BY to create something new,” Chiuri said Fashion — you’ve got to love it. and dramatic, face-framing collars. A

w10a004(5)a;8.indd 1 7/9/14 5:55 PM 07092014175714 WWD THURSDAY, JULY 10, 2014 5 WWD.COM

Jean Paul Gaultier Viktor & Rolf Elie Saab

FOR MORE IMAGES, SEE WWD.com/ Paris Couture runway.

Jean Paul Gaultier: Ask Jean Paul Gaultier black jumpsuit, the shoulders capped meditation on a cultural phenomenon,” the crystals covered in light-absorbing to name some favorite vampire movies, in satin, and an asymmetric cape with Snoeren said during a preview. flocking. As Horsting put it: “Making and it’s like clamping onto a rich vein: satin lapels were clever takes on tuxedo He and Horsting are participants, something brilliant, not brilliant.” Out spews titles including “The Fearless dressing. Gold chains, a witty substitute too, having dressed the likes of Jessica Vampire Killers,” “Bram Stoker’s for pinstripes on mannish suits, escalated Chastain and Natalie Portman for events, Elie Saab: Daywear didn’t stand a chance Dracula,” “Interview With a Vampire” into a strange detour of lamé pantsuits and not always in the standard-issue at Elie Saab’s haute couture show. The and the “Twilight” series. and a hoop skirt ringed in bling. hourglass column. “It’s our idea of what designer focused solely on red-carpet “An elegant vampire in a luxurious Many of the evening gowns were the red carpet should be,” Snoeren said looks — cocktail dresses and ornate jogging suit,” was how Gaultier described arresting, including a black-and-white of the 22-look collection. gowns, many featuring full skirts or his fall couture show, marred by the truly caped number pieced together with The designers sourced synthetic, trains, in pastel colors inspired by the frightening spectacle of an elderly model golden fangs. low-pile carpet at a factory in Holland, reflections of the crystal chandeliers that teetering and falling repeatedly from her Do you think garlic could deter and in lieu of the usual rigid backing, served as a backdrop for the display. vertiginous heels. Gaultier from his camp proclivities? they used a technical mesh. Then they Saab began with a cool palette of Mindful that blood-sucking, undead Not a chance. Upstaging the bride in wrapped, knotted and draped the carpet ice blue on a floor-length silk muslin creatures represent “an already an Elvira-worthy ballgown was bearded into minidresses, cocooning capes and dress embroidered with cabochons, theatrical idea,” Gaultier held himself drag performer Conchita Wurst, winner off-the-shoulder coats. sequins and pearls, the look draped back, telegraphing the theme via the of the 2014 Eurovision song contest. Minus the jutting bows, many of the with a matching fox fur stole. Next came black, white and red color palette and pieces had a just-out-of-the-bath look. variations on pink, copper, black, gray ghostly Marilyn Manson makeup. It was Viktor & Rolf: Distracted by their The more pliable mesh made more and white, often worked in dégradé on an excuse to use blood-red pony skin and smartphones, people barely clap at fashion plausible and less bulky garments, sequin-encrusted and Grecian dresses. liquid jersey, and to show dramatic hoods shows anymore. Not the case chez Viktor including nicely draped one-shoulder Tone-on-tone pearls were a key on a range of haute warm-up jackets in & Rolf. Viktor Horsting and Rolf Snoeren dresses. These were embroidered with decorative element, whether scattered velvet, knitted fur, miniscule crystals and enlisted a group of percussion students to small tufts of carpet arranged in spots on a floaty midnight blue dress with lace the color of cobwebs. These were fun perform a clapping piece as the designers approximating wild cats. “We like the butterfly sleeves or nestled amid sequins — among the best items in the show. paraded a couture collection made idea of animal prints because it’s so and stones on a pink and red silk tulle The tailoring was dusty, if finely entirely of red carpet, on a red carpet. primal glamour,” Snoeren noted. dress. The pearls worked best sprinkled executed: mille-feuilles of organza It was a wr y, yet ultimately one-note Horsting and Snoeren also unveiled on feather-light layered tulle, though it sculpted into leg-of-mutton sleeves commentary on the public’s — and their latest collaboration with Swarovski, was hard to imagine how one would sit and dramatic, face-framing collars. A fashion’s — obsession with celebrities. “A including bangles and rings with most of comfortably in these gowns.

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Maison Martin Margiela: The COUTURE design team at Maison Martin Maison Alexandre Vionnet Margiela clearly had some Martin Vauthier leftovers from last couture’s Margiela PARIS impressive collection built on FA L L 2014 vintage fabrics. This season, Second Empire lampas, a luxury material done with floral weaves, resurfaced on lean one-shouldered dresses and capelike columns that were sliced open on the side to reveal a bare leg. Bustier tops and diaphanous skirts were teamed with an embroidered lobster slung over the model’s shoulder in a not-so-subtle homage to Elsa Schiaparelli’s fantasy couture. Japanese embroidered bomber jackets from the Fifties, sourced at garage sales in New York and antique dealers in London, were extended into lean evening dresses, while the show’s highlight was a sleeveless dress sewn together from an assemblage of lifelike iris embroideries evoking Vincent van Gogh’s famous painting. South Korean singer CL, who sat in the front row at the show and was scouting for original stage costumes, said even though she was looking for garments that allowed her to move freely, “for this, I would be happy to adjust.”

Alexandre Vauthier: Alexandre Vauthier is weaning himself off the dazzle of disco and embracing resplendent reality. He put a greater emphasis on day looks this season, pouring his precision-cutting skills into great tailoring. Cropped carrot pants came with a particularly high waist, mimicking a tuxedo cummerbund and telegraphing a sexy, cool attitude. Vauthier unleashed his inventiveness by proposing seven styles of FOR MORE suit jackets, ranging from boxy- IMAGES, SEE ANNI GIANNONI

shouldered numbers to others V

with asymmetric lapels, all GIO WWD.com/ cropped and worked close to runway. the body. Though there were plenty of flashy evening options such ALL OTHERS BY as a one-shouldered romper embroidered in oxblood crystals, it was Vauthier’s MAÎTRE; craftsmanship that came to the fore. Lace embroidered with python and mink — DOMINIQUE shaven, then laser-cut to resemble lace — were among the standout techniques.

Vionnet: Hussein Chalayan’s PHOTO BY VAUTHIER sophomore demi-couture jacket. Now that’s expensive with his signature 3-D effects, with insets of white lace had a strict coat in black leather collection for Vionnet was a air conditioning. Rolland sculpted the bustier of a ruffled bib running all the with worn-out effects, and study in geometry and how it one siren gown from silk-coated way down the front, in a cross quickly followed it up with can alter the shape and allure Stéphane Rolland: Stéphane ostrich bones and covered between a shirt and a negligee. a pair of luscious high- of essentially romantic and Rolland has always had a the waistline of another floor- Meanwhile, a fitted man’s shirt waisted pants, styled with feminine evening gowns. knack for dramatic couture. sweeping number in red velvet in Gainsborough blue twill worn a transparent top and a The designer worked with This season, the red-carpet petals, giving the impression of with a tattoo-effect black lace long, trailing boa. More giant grommets, through which favorite of Paz Vega and a giant rose budding from the bodysuit and a tiered orange literal references to the art spilled layers of contrasting Kim Kardashian upped model’s waist. twill skirt provided just the movements of the era included fabrics. Elsewhere, the circular the theatrical factor of his Following the screening, the right pairing of tough and sweet. colorful, hand-knitted mohair shapes came in varying colors architectural designs with collection could be inspected Mabille’s masculine- sweaters, an homage to and were not cut out. a short film. There was no up close in a mini-exhibition. feminine idea was somewhat Lempicka, and some in the Calm and breezy pleated catwalk, just the movie diluted by a flotilla of generic more abstract, geometric lines dresses sometimes fell straight featuring French actor-director Alexis Mabille: “What is most lace evening gowns but one of Kazimir Malevich. the floor, or were whorled into Jalil Lespert and Spanish beautiful in feminine women ultrafeminine look stood out: Elsewhere, a whiff of a rosette near the shoulder. A model Nieves Alvarez. is something masculine.” That a tuxedo dress in emerald silk Tsarian Russia swept through garland of 3-D pleats ran down “I thought I’d turn it around (partial) Susan Sontag quote velvet that split open to reveal the designer’s beautifully one leg of some of the dresses, this time,” said Rolland, adding was inscribed on the liner notes a nude satin corset. crafted, kaftanlike coats and twisted their way into a that he designed the 20 looks of Alexis Mabille’s couture featuring delicate sequin trail at the back. specifically for the plot: a man show, but the designer wisely Ulyana Sergeenko: Ulyana embroideries and either frisky Chalayan clearly enjoyed wandering through the streets avoided a literal interpretation Sergeenko looked back to ostrich collars or generous fox- the game of illusion. What of Paris in search of an elusive of his brief. Russia’s revolutionary period, fur trim. looked like an oversize V-neck beauty. “My dresses are made While Mabille has designed setting out to translate the And while they clearly top in beaver fur gradually for photographers and camera tuxedos — notably for Dita Von political and creative turmoil did not fit into Sergeenko’s morphed into an undulating men, and so I wanted to express Teese — he focused instead on into a lineup that oscillated reference point, she could cape. He also literally punched myself in a different way.” dress variations of that evening between USSR-inspired not let go of her signature out perfectly round holes into The evening gowns were suit, in addition to feminine rigidness and the folly of a Fifties bombshell silhouettes, the backs of a pretty mink photogenic indeed. Mixing reworkings of men’s shirts. Tamara de Lempicka painting. including silk and lace lingerie coat and a sporty-chic beaver Japanese poetry references A long dress in white crepe Sergeenko opened with dresses and full bustier gowns.

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music to me is France, and Bulgari Stéphane Rolland Ulyana FASHION SCOOPS represents Italy. It’s my roots, my Sergeenko childhood, and many things that take me back to a dream of my ALL IN THE FAMILY: Kim Kardashian age. And it was great — it was childhood,” she mused. was reunited with Valentino like one of my first glamorous Bana, the face of Bulgari’s Garavani, who in May hosted dresses,” Marie-Chantal Man Extreme fragrance, stars a pre-wedding brunch for recalled. “I have some good opposite Édgar Ramírez and Olivia her and Kanye West, at the pieces. I like to hold on to Munn in the recently released Valentino couture show in everything.” — JOELLE DIDERICH “Deliver Us from Evil,” based Paris on Wednesday. on the memoirs of a former The reality TV star said she IN THE FLESH: Bulgari took the NYPD sergeant who moonlights was on a lightning visit to the unusual step of showcasing its as a demonologist. French capital to attend the event high-jewelry collection on a “I haven’t had anything and support her sister Kendall catwalk at a star-studded event crazy happen to me personally, Jenner, who the previous day held during Paris Couture Week. but I came across a lot of walked on the Chanel runway. Guests including Carla Bruni- very interesting things whilst “I’m so proud of her. It’s so Sarkozy, Jared Leto, Eric Bana, Luke researching the film that I crazy to see my little sister now Evans, Zachary Quinto, Arizona Muse, guess caused my mind to be traveling the world and having her Olivia Palermo, Poppy Delevingne open a little bit more, for sure,” own career, so I wanted her to feel and Alexander Ludwig gathered said the Australian actor. — J.D. like she had some kind of family at gastronomic restaurant support here,” said Kardashian, Apicius, though a steady drizzle SENTENCED: Two former Carter’s dressed in a cleavage-baring eau prevented the party from Inc. executives, Eric M. Martin and de Nil Valentino gown. spilling out into its lush garden. Richard T. Posey, were sentenced She expressed enthusiasm to federal prison for their roles for her new app, “Kim in an insider trading scandal Kardashian: involving company stock. Hollywood.” FOR MORE Martin was the former vice “It is a video SCOOPS, SEE president of investor relations. game and it’s kind He was sentenced to two of stepping into my WWD.com years in prison and ordered world and making it to pay $950,000 in restitution. in Hollywood, and it’s Posey was the former vice really fun. I think my favorite president of operations. He part was taking and designing was sentenced to one year all of the outfits, taking all the imprisonment and ordered to things I would wear in real life pay $750,000 in restitution. and putting them into the game,” According to information Kardashian said. from the Federal Bureau “ Yo u can have a photo Carla Bruni-Sarkozy of Investigation in Atlanta shoot, you can pick your Tuesday, “Martin’s illegal photographers. We’re adding trading and tipping of others so many more things. I think Models paraded in creations between 2005 and 2010 resulted today we just put up all my ranging from the brightly in over $7 million in insider vacation spots that I like to go colored pieces for which trading gains and losses avoided to, so you can go on a vacation Bulgari is famous — such as a for Martin and his downstream in Mexico where I like to go,” yellow gold necklace set with tippees.” Posey’s illegal actions she added. stones including tourmalines, between 2009 and 2010, which Guests including Emma amethysts and topazes — to included providing information Watson, Baz Luhrmann and his diamond jewelry including a in advance of earnings releases Alexis Mabille wife Catherine Martin, newlyweds fully pavéd Serpenti bracelet. to Martin after he ceased Olivia Palermo and Johannes Huebl, “I would never imagine employment with the company, Du Juan, Alexandra Richards and CL having just new jewels in a resulted in over $5 million in FOR MORE braved the rain to attend the display box. It would be unfair, insider trading gains and losses IMAGES, SEE show, held at the plush Hôtel I think, to feminine beauty and avoided, the FBI said. Salomon de Rothschild. to the craftsmen who made In a separate matter also WWD.com/ Princess Marie-Chantal of the jewelry,” Bulgari chief involving a former Carter’s runway. Greece and her daughter Maria- executive officer Jean-Christophe executive for securities Olympia were planning to head Babin said after the show. fraud involving accounting to Capri the next day, although He noted that diamond irregularities, Joseph Pacifico is it was not certain they would jewelry makes up about 40 still awaiting trial, according find better weather there. “I percent of the new collection, to the U.S. Attorney’s Office in see a little thunderstorm on my the largest the Roman firm has Atlanta. Pacifico is the former iPhone,” said Marie-Chantal. ever produced. president of the children’s giant. Maria-Olympia, at Paris “It’s kind of a turning point. A federal grand jury Couture Week for the first time, In the past, we had virtually indicted Pacifico in March only colored stones, 2012. According to the combining precious indictment, Pacifico allegedly and semiprecious, was aware that certain whereas this year executives at the company had clearly we wanted to been “deliberately causing make also a statement Carter’s to falsely record in its that as a master of accounting books millions of colored gemstones, we dollars in rebates,” otherwise are first and foremost a known as margin support, paid master of gems, starting to Kohl’s and other retailers. with diamonds,” he The charges against Pacifico explained. are only allegations and still Bruni-Sarkozy is need to be proven by the federal fronting her second government. — VICKI M. YOUNG ad campaign for the brand, which began YOOX GOES SPORTY: Yoox.com rolling out in June. is set to make its debut into “We wanted the sportswear arena. In to make lively September, the Italian e-tailer campaigns and to will launch a new shopping bring high jewelry area dedicated to activewear STÉPHANE FEUGÈRE Kim Kardashian and alive for everyday for women, men and children. Valentino Garavani — not women like According the company, the statues, but women offering will include a range of PHOTOS BY who eat, sleep, international brands spanning borrowed one of her mother’s are active, busy, sometimes from the most popular, fashion- vintage Valentino dresses tired, smiling, of course, but forward labels to niche firms to attend the opening of the essentially spirited, and I think focused on products guaranteeing “Valentino: Master of Couture” that has become clearer with technical performance. exhibition at Somerset House the second campaign,” Bruni- Sportswear is only the latest in London in 2012. Sarkozy said. addition to the categories “It was a 1985 Valentino. France’s former first lady is launched by Yoox, which, I think I was 16 when I wore combining her promotional duties along with ready-to-wear and it. I’m terrible at math, but I with her songwriting career. accessories, also include design should have been about that “I am truly Franco-Italian. My and art. — ALESSANDRA TURRA

8 WWD THURSDAY, JULY 10, 2014

Measuring Market Cap: {Continued from page one} Todd Hooper, partner’’ in the private eq- The top and quickly growing compa- The fast-fashion trio of Inditex, uity practice of A.T. Kearney. nies in the Tracker have clear brand posi- Hennes & Mauritz AB and Uniqlo par- foreign exchanges are listed in current Those assets include stores, brands tioning — which analysts said is perhaps ent Fast Retailing Co. Ltd. have upended U.S. dollars for comparison sake.) and product development capabilities, the most important variable for investors. the industry, focusing on affordable looks As the rankings move from the truly he said. People putting their money to work in and jolting competitors with quick inven- gigantic to the intensely large, a clear di- “Broadly speaking, these valuations the markets are looking for growth and se- tory turns that help them keep up with vide in customer base emerges — reflect- are a fair long-term assessment of… curity and that’s what they get in a brand, trends. Together, the three companies ing the squeeze felt by the middle class. the neighborhood that these business- said Christine Chen, senior investment are valued at more than $190 billion. Fashion’s largest and therefore most es should be valued in,” Hooper said. analyst at Ashfield Capital Partners. Off-pricers The TJX Cos. Inc., valued successful players are going after the two “The market is pretty smart at under- “You’re selling the brand and the at $37.71 billion, and Ross Stores Inc., at ends of the price spectrum. The tendency standing what’s driving growth and brand is selling the dream — that creates $14.16 billion, have also tapped success- is for these companies to zero in on the what’s driving margins.” the moat [around a business],” Chen said. fully into this desire for quick-moving luxe consumer or remain laser focused goods, producing sales floors that are on the low-income shopper. constantly being updated with new deals. “The hollowed-out middle class is A similar revolution is going on in an important part of this story,” said You’re selling the brand and the brand is selling the activewear space, which has grown Jonathan Low, founding partner at more vibrant as workout pants become a Predictiv Consulting, noting that house- the dream — that creates the moat [around a viable alternative to jeans and consum- hold incomes for many have been stag- ers strive for a better life, not necessar- nant for decades. ily a richer one. The trend is made most visible by LVMH business]. Wall Street wants that moat. “Sport is aspirational,” said Marie Moët Hennessy Louis Vuitton and Zara par- Driscoll, consultant and former equity ent Inditex, which are vastly different com- — CHRISTINE CHEN, ASHFIELD CAPITAL PARTNERS analyst Standard & Poor’s, noting many panies playing in vastly different markets, low-end consumers can save to buy a $100 but when it comes to overall value, inves- pair of sneakers. “They’re not just aspir- tors view them as nearly identical. While market cap is not the same as “Wall Street wants that moat. Wall Street ing to wealth, they’re aspiring to lifestyle.” They round out the top-five most market share, with the former referring to values brand and growth and the two are And that lifestyle translates into a fo- valuable companies in the Tracker with a company’s value and the latter referring intertwined. You can’t have growth if you cused positioning, reinforcing the solid LVMH at $96.54 billion, and Inditex at to how strong its positioning is in a partic- don’t have a story to tell. Look at those branding investors love. $95.12 billion. ular area, overall stock market value does that have fallen the hardest, it’s ones “A strong brand focus helps apparel It’s no accident that these companies tend to hew closer to a company’s sales or who don’t have a moat or didn’t protect brands because otherwise, apparel has find themselves on top of the heap. To be sales trend than to its earnings. that moat.” so much inventory and fashion risk,” that big, a firm needs to do many things Kate Spade & Co., for instance, This impulse to protect a brand has Driscoll said. and be fairly good at all of them: It needs logged net earnings of just $73 million caused many companies to branch out The Tracker launched at 100, but look- to be global and focused on the nuts and last year. But investors chose to focus on and emphasize their own’’ stores. ing at historical data, is up about 0.4 per- bolts of operations to reliably get product the 61 percent sales growth at the com- “You have to be in control of your own cent so for this year, showing the global into the hands of consumers. pany’s namesake brand, while pushing it destiny because the Internet demands fashion industry has lagged Wall Street “These are all companies that have to a market cap of $4.7 billion. it,” Chen said. “You create the environ- blue-chip stocks, which have gained 2.5 been around for a long time, for the most Growth is the story most companies ment and you can tell the story better be- percent over that time according to the part, and they’ve established a huge base sell to investors, but often it’s just a dif- cause you have your own stores.” Dow Jones Industrial Average. business, which has a bunch of assets ferent spin on the story the company is And that story plays better when its “A lot of investors are reluctant to [put that are going to generate value,” said selling consumers. very focused. money into the sector], but if you have a

most important fashion, retail, luxury and beauty stocks around the world, as Meet the WWD Global Stock Tracker chosen by WWD editors. It is based on market capitalization and updated each A new look at fashion shares in the worldwide marketplace. off in the same global marketplace. day at 4:45 p.m. Eastern Standard Time. And they are part of a broader The Tracker landing page at wwd. In the fast-moving worlds of fashion dustry that reflects its geographical group of competitors and collabora- com/business-news/stock-tracker has a and finance, it can be hard to tell at breadth and product category depth. tors that include beauty giants such complete list of the component stocks, any given moment who’s up, who’s Prada SpA might trade in Hong as Estée Lauder Cos. Inc., activewear with the day’s best performers listed down and who’s at the top of the heap. Kong dollars, while LVMH Moët player Under Armour Inc. and retail- on top. It also opens up plenty of op- Helping to cut through the noise Hennessy Louis Vuitton is quoted in ers from Japan’s Seven & I Holdings portunities to compare and contrast to is the WWD Global Stock Tracker, a euros and Michael Kors Holdings Ltd. Co. to Wal-Mart Stores Inc. see exactly where one stacks up. stock benchmark for the fashion in- in dollars, but they are all squaring In all, the Tracker follows 100 of the — EVAN CLARK

Components can The components be viewed in their The winners and local currencies or can be broken down losers for the past into regions to Product category translated into one day, or up to the competitors can currency to easily compare companies past three years, with their home- square off. compare market can be parsed. capitalizations. market competitors.

▲ On company pages devoted to each component, individual stocks can be mapped against the Tracker’s performance.

WWD THURSDAY, JULY 10, 2014 9 WWD.COM An’’ Industry of Giants

strong brand, that helps,” Driscoll said. host of companies facing operational Brands, however, need to be guarded challenges, scandals or turnaround to remain strong. efforts (and in some cases all of the “It’s like Under Armour’s ‘Protect above) that have seen their value di- This House’ [tag line] — don’t put [a minish over the past year. American Market Cap Mavens strong brand] in bad channels, don’t Apparel Inc., Elizabeth Arden Inc., market it down too quickly,” she said. Quiksilver Inc., The Bon-Ton Stores The largest fashion companies by market “Maintain control over your brand.” Inc., J.C. Penney Co. Inc., American Under Armour was the fastest- Eagle Outfitters Inc., Coach Inc. and capitalization each took their own routes to the growing stock in the fashion flock over Lululemon Athletica Inc. saw stock the past year, jumping 94.3 percent to declines ranging from 57 percent to 38 top, but solid branding and a global footing are percent in the last 12 months. key to getting — and staying — big. But despite those and other lag- gards and the onslaught of new com- You can build petitors for the consumer’s dollars — 1 2 from higher gas bills to sleek new tech shareholder value gadgets — the range of companies on the move in fashion speaks to the in- Wal-Mart Procter & in the broader dustry’s vibrancy. “This is a testament of the fact you Stores Inc. Gamble Co. can build shareholder value in the consumer space broader consumer space with a mul- titude of strategies and approaches,” $247.09B $217.99B with a multitude said Luca Solca, managing director, sector head global luxury goods, Exane of strategies and BNP Paribas. 3 4 To be truly giant, though, brands need to become masters of what they do LVMH Moët approaches. around the globe — something even the — LUCA SOLCA, leader Wal-Mart has struggled with as L’Oréal SA* Hennessy it seeks to move its model to markets in EXANE BNP PARIBAS every time zone. Louis Vuitton* For years, China was the new fron- $104.33B tier in fashion and what executives $59.91. And it’s joined by other sports- were really talking about when they $96.54B themed companies in China: Anta were talking about a global approach. Sports Products Ltd., up 81.7 percent Now, the focus seems to be on more of over the past year to 12.92 Hong Kong a truly global field, with other coun- 5 6 dollars, or $1.67 at current exchange, tries coming to the fore, from Chile and Li Ning Co. Ltd., up 37.8 percent to and the United Arab Emirates to 5.43 Hong Kong dollars, or 70 cents. Brazil and Russia. Joining them among the top gainers Ashfield’s Chen said the Internet was Inditex SA* Nike Inc. over the past year are other brands, still as, if not more, important than China for breaking out and zeroing in on very spe- companies shooting for the top. cific markets, particularly accessories. “China has the population, but just $95.12B $68.21B Among them are Kate Spade, up 57.3 because you’re there doesn’t necessar- percent to $38.12; Michael’’ Kors, ahead ily mean you’re making money there,” 42.2 to $91.38; Pandora A/S, up 90.6 per- she said. “But if you can figure out the cent to 413 Danish krone, or $75.40, and Internet, maybe you don’t even need to 7 8 Chow Tai Fook Jewellery Group Ltd., up be [in China with physical stores].” 46.2 to 11.84 Hong Kong dollars, or $1.53. — WITH CONTRIBUTIONS H&M On the flip side, there are also a FROM SAMANTHA CONTI Unilever plc Hennes & (plc shares)* Mauritz AB* The 15 fastest-growing fashion $57.79B Sprinting Ahead stocks over the past year. $60.72B Name Country Currency Close 1-Year Change 9 10 Seven & I Richemont* Holdings Co.* $52.79B $38.62B

11 12 Hermès International Target Corp. SCA* $37.90B $37.92B 13 14 The TJX Fast Retailing Cos. Inc. Co. Ltd.* $37.71B $34.71B

* MARKET CAPITALIZATION CONVERTED TO U.S. DOLLARS AT CURRENT EXCHANGE. 10 WWD THURSDAY, JULY 10, 2014 Men’s Week Rag & Bone’s Gallery Outing

by JEAN E. PALMIERI looks for each photo, but several decided to tweak the outfits to bet- NEW YORK — Rag & Bone is ter represent their own personal breaking the rules again. taste. “And that’s how it ended On Wednesday night, the New up,” Wainwright said. “These are York-based brand presented its people who see clothes in a par- spring men’s collection in an uncon- ticular way.” ventional manner, using a “photo David Neville, the other manag- project” shot by Andreas Laszlo ing partner, said showing the col- Konrath in a Dia: Chelsea gallery lection in this way is “fresh, and a on the west side of Manhattan. good representation of the brand. The looks were photographed “The concept is rooted in the on 26 “friends of the brand,” a mix idea of reality. These are real peo- of famous and regular people that ple and this is the way they dress included comedian Jerry Seinfeld, in their day-to-day lives.” basketball star Carmelo Anthony Both men say the idea of hold- and Ben Lovett of Mumford & Sons, ing a runway show during fash- as well as entrepreneurs, photog- ion week no longer appeals to raphers, restaurateurs and music them. “It’s just not interesting,” producers. The shots also include Wainwright said. “It just becomes a wives of both managing partners of blur of men’s brands. We love that Rag & Bone wearing men’s clothes. format, too, but we don’t want to do “It’s a pretty eclectic group,” just plain runway shows anymore. said Marcus Wainwright, cofound- By forgoing a runway show, we can er and designer. “We don’t care if focus on amazing pieces.” they’re recognizable. The point Neville agreed. “With men’s was to present a cross-section of runway shows, you can get dis- people who we think are awesome tracted by showing fashion just for or cool. Yo u don’t have to be a ce- the sake of it. Our message for our lebrity to matter.” men’s wear is real people in real Rag & Bone filled the walls clothes. We use beautiful fabrics of the space at the event with 44 and silhouettes, but they’re not blowups of the photos and supple- screaming at you. And this concept mented it by tacking pieces from allows us to do that.” the collection up on the walls on They also chose this week — hangers. “That referenced our one day after Michael Kors opened first-ever look book” that was shot the season in New York by showing in that way, Wainwright said. his collection in his showroom — He noted that a stylist worked because “people are just back from with the subjects to choose the Europe,” Neville said, and the New

Looks from the collection.

L Jerry Seinfeld, Fabrice Penot of Le Labo and hairstylist Duy are among the faces in the photo project.

FOR MORE IMAGES, SEE WWD.com/ menswear-news. ONRATH

York trade shows open next week- a black cotton sateen pant with a K O

end. “So it’s in between. There’s railroad stitch, and Japanese sel- ZL AS

never really been a defined New vage pin-striped suit separates in L York men’s fashion week so this is indigo or cream. Elongated silhou- REAS our pre-men’s market.” ettes were evident in oversize car- D AN For the spring collection, digans and a plaid shirt, and there BY Wainwright said the pieces are were also performance pieces such “languid. There’s an ease and a as a seam-sealed nylon jacket with drapiness. We used a lot of cotton a touch of linen in it. Cut-off sweat- ORTRAITS this season and while there isn’t a shirts, cropped cotton pants and a specific theme, we’re referencing moleskin coat were also offered, nonchalance in a Jackson Pollack- and the brand reissued one of its I-don’t-give-a-f--k way. There’s original pieces, a Fifties-inspired

nothing rigid.” James Dean shirt that could dou- GEORGE CHINSEE; P Even though most of the collec- ble as a pajama top with its white tion was fluid and looked “lived piping. But perhaps the pièce de in,” there was nevertheless still résistance was a racing boat sail- a nod to the company’s English cloth coat laced with fiberglass.

workwear roots in pieces such as “It’s wicked,” Wainwright said. PHOTOS BY FASHION

w10a010a;8.indd 10 7/9/14 6:42 PM 07092014184302 Men’s Week WWD THURSDAY, JULY 10, 2014 11 Movado to Commemorate Jeter Ovadia to Launch by DAVID YI only a single number 2 placed at 2 o’clock. All three models will share a special com- PRECISION HAS always been on Derek memorative Derek Jeter Captain case back Jeter’s mind. Whether it’s reaching 3,000 hits, design and come with a packaging featuring wrapping up a baseball career in exactly 20 the Captain Series’ seal. The starting price Activewear Label years or wearing that lucky jersey is $595 and they will be available by JEAN E. PALMIERI signs the collection with his twin brother, number 2, the numerals have all on Movado’s Web site on Tuesday. Ariel, “We’ve been having success and been exact. “We wanted to celebrate OVADIA & SONS is getting active for spring. getting great feedback from our retail So as the New York Yankees Derek not only for being a role The buzzy New York-based men’s wear partners on our athletic-inspired pieces, shortstop prepares to call it a ca- model on the field, but off,” said brand will launch Ovadia +, a new collec- and it’s in tune with what’s going on in reer at the end of the season, Mary Leach, Movado Group tion of athletic-inspired performance ap- the market today. So we created Ovadia it seems apropos that he has Inc.’s chief marketing offi- parel during market week this month to +, which features innovative lightweight teamed with Movado Group cer. “We loved the num- launch for the spring season. and airy performance fabrics.” He said on a trio of watches, called ber two, since Derek’s the collection offers performance attri- The Captain Series, to all about it, and butes, but the pieces “look good enough honor his storied Major we wanted to cre- A look from the that you can wear them to work.” League Baseball career. ate two watches to new collection. The apparel is all made in the U.S., “My parents always commemorate him, he said, adding that it was “luxe, modern stressed the impor- but [added] a third and minimal.” The sneaker offering will tance of being punc- for good luck and be made in Italy. tual, so I wore a watch looking forward.” He said Ovadia + was shown to starting at a pretty Leach said the Barneys New York, a key retail partner young age,” Jeter said. company will con- for the main line, and “they picked it up.” “Because I was so active, tinue to collaborate Beyond that, Ovadia said the hope is to I always liked watches with Jeter after he re- “launch with the right retail partners,” with stopwatches so I tires. “Wherever Derek including “different doors that normally could time myself doing goes, we will definitely be wouldn’t carry [the main line].” drills, running around the keeping this relationship,” Ovadia said he hopes the pricing and bases and various other ac- she emphasized. One of The design of Ovadia + will become “more of tivities like that.” Jeter, who will focus on Captain Series an urgency item — something you don’t Jeter and Movado have col- publishing endeavors with Jeter watches. have to think twice to buy.” laborated on two other collections Publishing when his career ends, The Ovadias grew up working in the in the past, including a model that still hopes to make some more family’s children’s wear business, Magic commemorated his 3,000th hit in baseball highlight reels in October. Kids Inc., a $10 million distribution com- 2011, a watch Jeter calls “a sentimental win- “I’m proud of the success we’ve accom- pany that specializes in closeouts, and ner. The color, the 2 and the 3,000 engraved plished as a team during my time with the launched Ovadia & Sons in 2010. The on the back all make it a special piece.” Yankees and hopeful we can add a few more brand offers a modern interpretation of The Captain Series models are new for highlights before this season comes to a American and English classics and in- this year and include a customized dial with close,” he said. cludes a comprehensive assortment that ranges from suits, outerwear and formal- wear to shoes, furnishings and accessories. The 12-piece line will be priced slightly The brand was named GQ’s Best Menswear below that of the brand’s signature Ovadia Designers in 2011, was a finalist in the & Sons collection of vintage-inspired CFDA/Vogue Fashion Fund in 2013 and the men’s wear. It will include T-shirts, hood- International Woolmark Prize in 2014. ies, shorts, pants, outerwear and sneakers. For four seasons, the brothers had Prices include Ts for $85, hoodies for $195, designed the Ivy League-inspired J. For more career opportunities log on to WWDCareers.com. bottoms for $150 to $200, outerwear for Press York Street for the Japanese- $325 to $696 and sneakers for $350. owned retailer, but the partnership According to Shimon Ovadia, who de- ended earlier this year. Spaces Tommy Bahama Taps Design Chief COMMERCIAL REAL ESTATE AFTER A YEAR-LONG SEARCH, Tommy identifying consumer trends and devel- High quality service Bahama has found its new head of design. oping labels. Most recently, she was vice Pattern, sampling, duplicates and small production. The Seattle-based division of Oxford president of women’s design and global MK Fashion 212-768-7446 Industries Inc. named Bradley O’Brien to trends for Sperry Top-Sider. She also [email protected] the newly created position of executive spent 10 years at Ralph Lauren and has 33rd-57th St West-All Sizes PATTERNS, SAMPLES, vice president of design and product devel- also held executive-level design positions PRODUCTIONS Menswear Showrooms Full service shop to the trade. opment. She reports to Terry Pillow, chief at Lands’ End and Old Navy. D. Levy Adams & Co. 212-679-5500 Fine fast work. 212-869-2699 executive officer of the Tommy Bahama “She has a very diverse background Group, and will be re- and had the mix I was sponsible for all cat- looking for,” Pillow egories including men’s Bradley said, pointing in partic- and women’s apparel, O’Brien ular to her experience swimwear, accessories, in women’s wear, acces- footwear, home and all sories and shoes, grow- licensed products. ing categories for the Pillow said that al- Tommy Bahama brand. though the company has O’Brien added: “very talented people” “Everyone shares the overseeing each of these dream of unwinding areas, he believed it was on a beach and Tommy “time to create a new Bahama is perfectly po- position with a person sitioned to take you there who would oversee the through their product and whole thing.” He said stores and restaurants.” MANUFACTURER REPS WANTED O’Brien will provide a In the first quarter Current reps make $100k+. Our fashi- “filter” to ensure the ended May 3, Tommy on earbuds, iPhone cases sell in 5000+ stores. If you sell to fashion accessory company’s message is Bahama’s overall sales buyers, email: [email protected]. consistent among all cat- rose 5 percent to $158.4 egories. “We want to tell million, with compara- Account Executive one story,” he said. ble-store sales down 1 Established Men’s and Boy’s Apparel company based in NY City seeks an Pillow said he started percent. Adjusted oper- Account Executive for Mid to Large size Accounts in the USA and the search process one ating income was $20.3 Worldwide-Branded and Private labels year ago and interviewed more than 50 peo- million, compared with $21.4 million in Requirements; Must have a list of relationships with national or regional ple for the position. “I was in no hurry,” he the first quarter of fiscal 2013, a drop chains; Commission and base said. Tommy Bahama is “not a traditional that the company attributed to increased opportunity- or commission only Please send resumes with list of or designer brand, but a lifestyle brand,” he selling, general and administrative ex- customer relationships to said, and many customers have formed “an penses, a slight dip in gross margin and [email protected] emotional connection with us. It’s not so easy the comp-store sales decrease. At the end to tell people what the brand is all about and of the first quarter, Tommy Bahama op- you really have to buy into what we do.” erated 141 stores including 91 full-price (800) 423-3314, or email [email protected] O’Brien has more than 20 years expe- stores, 14 restaurant-retail locations and rience in the apparel industry in design, 36 outlets. — J.E.P. FOLLOW FASHION’S HIGHS AND LOWS

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