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Firmly Focused INTERNATIONAL TRADE SHOWS/SECTION II FACING STRONG HEADWINDS Marco WWD Bizzarri WEDNESDAY, NOVEMBER 16, 2011 Q WOMEN’S WEAR DAILY Q $3.00 Richard A. Baker Tom Murry Norma Kamali Carol Goll WWDBRAND 2011 CEO SUMMIT EVERYWHERE Victoria Beckham Firmly Focused From Calvin Klein to Victoria Beckham, Bottega Veneta to Lord & Taylor, speakers at the WWD Apparel & Retail CEO Summit at The Plaza hotel in New York discussed how sticking to their brand values have enabled them to thrive in these turbulent times of social media, a booming China and an ever-changing consumer. For complete coverage, see pages 10 to 19. Remo Peter Federico Ruffini Williams Marchetti Haider Ackermann ALL PHOTOS BY JOHN AQUINO ALL PHOTOS BY IN WWD TODAY Women’s Designer Lags at Saks PAGE 4 Burberry’s Flagship Raleigh Denim’s RETAIL: Reporting strong third-quarter Strategy PAGE 4 Local Taste PAGE 6 results, Saks Inc. admitted that women’s FINANCIAL: Angela Ahrendts, DENIM: Using old machines and USA cotton, designer apparel sales struggled — and Burberry’s chief executive officer, Raleigh Denim is thriving in North Carolina — expressed concerns about the category in said the opening of major flagships and has just opened a store in Raleigh, the fourth quarter. will fuel the firm’s future growth. with eyes to add a unit in Manhattan. 2 WWD WEDNESDAY, NOVEMBER 16, 2011 WWD.COM Wal-Mart Comps Rise, American Eagle Taps Hanson more than two decades with Levi Strauss & Co., Profit Falls 2.9 Percent By JEAN E. PALMIERI most recently as global president of the Levi’s brand, resigned from his position. According FORMER LEVI’S EXECUTIVE Robert Hanson to sources, Hanson had been disappointed not By SHARON EDELSON has gotten himself a new gig. to have been named ceo of Levi’s when the San American Eagle Outfitters said late Tuesday Francisco-based jeansmaker appointed Chip PROFIT AT WAL-MART STORES INC., the world’s largest retail- that Hanson will become its new chief executive Bergh ceo in September. Bergh, a former Procter er, declined 2.9 percent in the third quarter, but after nine consec- officer, effective Jan. 30. Hanson will succeed & Gamble executive, succeeded John Anderson, utive quarters of revenue declines the company on Tuesday said James O’Donnell, who who had retired from its namesake division recorded a quarterly increase. has been at the head of Robert Hanson Levi’s after a 32-year Wal-Mart earned $3.33 billion, or 97 cents a share, in the the Pittsburgh-based re- career there. In an e- three-month period ended Oct. 28. That compares with $3.43 bil- tailer since 2002. mail to Levi’s licensing lion, or 95 cents a share, in the year-ago period. Earnings per “After an extensive partners, Hanson wrote: share for last year’s third quarter included a $191 million tax search, we believe Robert “After an incredible, al- benefit, which was about 5 cents a share. is the ideal person to most 24-year career with The retailer said it expects fourth-quarter EPS of $1.42 to build on AEO’s strengths, Levi Strauss & Co., it’s $1.48 and full-year EPS of $4.45 to $4.51. maximize our portfolio time for a new chapter Net sales increased 2.7 percent to $63.8 billion, driven by a of brands across North in my life, time for me to higher ticket, but shoppers made fewer trips compared with last America and propel our ‘Go Forth,’” a reference to year’s third quarter. brands into new markets Levi’s current advertising Consolidated net sales rose 8.2 percent to $109.5 billion in the across the world,” said campaign. According to a third quarter, from $101.2 billion in 2010. The increase includ- Jay Schottenstein, chair- Securities and Exchange ed $2.1 billion in sales from acquisitions in the U.K. and South man of American Eagle. Commission filing, Africa and a currency exchange translation benefit. Without the “He brings extensive ex- Hanson will receive $2.29 acquisitions and currency benefit, consolidated net sales in- perience in the apparel million, payable in install- creased 4.8 percent in the third quarter. industry and global brand ments over 18 months, International net sales rose 20 percent over last year’s third positioning. In Robert, we and a lump-sum payment quarter to $32 billion. have an individual who of $600,000 payable 30 Total comp-store sales in the U.S., excluding fuel, were 1.9 possesses a unique blend days after his resignation percent for the 13-week period. Without inflation, same-store of merchandising, innova- becomes effective Nov. 27. sales would have increased 0.6 percent. Comp-store sales at Wal- tive marketing and strong Hanson, 48 will bring a Mart U.S. rose 1.3 percent, and at Sam’s Club, 5.7 percent, ex- operational skills, with a fresh energy to American cluding fuel. Wal-Mart is forecasting comp sales for the fourth proven ability to inspire Eagle, which operates quarter to be flat to up 2 percent. and lead creative apparel nearly 1,000 stores in the “Every business sector is stronger,” said Mike Duke, chief ex- and retailing teams.” U.S. and Canada and tar- ecutive officer of Wal-Mart Stores.“Our overall performance re- “AEO’s brands are gets 15- to 25-year-old flects that we are driving productivity, leveraging expenses and highly relevant to today’s girls and guys. investing in price leadership.” consumers, with incred- Gilbert Harrison, Duke attributed the improved results to expanded assort- ible future potential,” said chairman of Financo, ments — the program to restock stockkeeping units that were Hanson. “I look forward to starting on Jan. 30, 2012 Inc., who spent six years on the board of American previously slashed is almost completed. Also, integration of and working with the talented team of associates Eagle, said Hanson’s “ability to grow American technology with associate productivity programs has improved. to continue to build on the very strong foundation Eagle will be significant and he will create value Health and wellness, electronics and hardlines improved, but that is already in place.” for the brand, especially as it grows globally in its apparel had a low-single-digit negative comp. Men’s and ladies Since March, the retailer has been searching next phase.” apparel, with a focus on core basics, had the strongest sales. for a successor to O’Donnell, 70, who informed Last week, American Eagle revealed sales for the Expanded shoe departments and assortments recorded the first the board at that time of his intention to retire. third quarter ended Oct. 29 increased 11 percent to positive quarterly comp in more than two years. O’Donnell agreed to stay on until a successor was $832 million, compared with $753 million last year. Wal-Mart’s consumer continues to be financially challenged, named and through a transition period. Comparable-store sales rose 5 percent. The retailer trading down to lower price points or trading out of certain cat- About two weeks ago, Hanson, who had spent will report third-quarter earnings on Nov. 30. egories, Duke said. In a Wal-Mart survey, only one out of 10 moms viewed the state of the economy as good, he added. The retailer is gearing up for the holidays, shouting its “Everyday Low Price” mantra in a variety of media, from print to digital. Layaway volume is exceeding plan and there’s a zero Dolce & Gabbana Jewelry Hits Stores percent financing offer on the Wal-Mart credit card. MILAN — Dolce & the Virgin Mary. Precious ma- Wal-Mart, which has opened on Thanksgiving Day for several Gabbana’s first line of jew- terials include tricolor gold, years, will begin at 10 p.m. this year with price rollbacks. elry hits stores today in rubies, sapphires and pearls. The retailer is integrating its stores and Web site and mobile apps Milan, Paris and London. Charms range from hand- and reaching out to customers via social media. Citing the 3,800 Wal- The collection, which bows engraved keys and coins to Mart U.S. units and 120 distribution centers, Duke said, “Wal-Mart in the U.S. in December, hearts, hexes and horseshoes, can offer multichannel access in a way that no other retailer can.” will be available at the dangling from bracelets and necklac- Gross profit dollars were up 1.9 percent over last year’s third brand’s boutiques only. es, or from rings as pendants. quarter to $17.9 billion, while the gross margin rate fell about 22 Retail prices range from The designers presented the col- basis points. Operating expenses dropped 41 basis points as a $975 to $24,500. lection during Milan Fashion Week in percentage of sales and SG&A rose 70 basis points compared to The 80-piece line hing- A piece from September. Gabbana said at the time last year’s same period. es on Domenico Dolce Dolce & Gabbana. that the jewelry is “unmistakably Dolce Wal-Mart International’s net sales for the third quarter rose 20.3 and Stefano Gabbana’s & Gabbana.” According to Dolce, the jewels percent to $32.4 billion. Changes in currency translation increased personal iconography rooted in Sicilian “have an intimate feel, they almost look like you net sales by $1.3 billion. Sam’s Club’s third-quarter net sales rose 9.5 tradition: crosses, black jade rosaries could have inherited them.” percent over last year to $13.3 billion, helped by strong fuel sales. and delicate filigree ceramic images of — LUISA ZARGANI SECTORS IN THIS ISSUE TODAY ON WWD.COM TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME.
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