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'Twas a Swell Noel Looks like Santa was good to this fashionista, but how did retailers fare? Many of their items were indeed big sellers, including the ones shown here and on pages 6 to 8. Parkhurst scarf at Lord & Taylor Women’s Wear Daily • Monday, December 27, 2010 • $3.00 ($48) WWD Chico’s bracelet ($48) ’Twas a Swell Noel By David Moin Christmas was good to retailers this year. even as concerns remain over the consumer mood in 2011, retailers have entered the last leg of the holiday season — the week between Christmas and New year’s — expecting another wave of spirited Worthington shopping and feeling good about the outcome so far. sweater at J.C. Penney ($30) and that’s particularly true in apparel and accessories. this past weekend, retailers and analysts concluded those categories performed the best during holiday 2010 after several years when the sector lagged in favor of electronics and toys. skyrocketing online and mobile shopping, robust gift card sales, tax cut extensions, rebounds in luxury goods and men’s wear, and free shipping of online orders also spurred sales growth this year. Pundits forecast the holiday season will see anywhere from 3 to 5 percent gains over last year, and believe “frugal fatigue’’ set the stage, whereby consumers became tired of holding back after two years of belt tightening and emerged eager to shop for themselves as much as for gifts. the volume improvements, along with the solid inventory and expense controls, and aggressive planned-in-advance promotions, have Oscar de la Renta dress elevated expectations for healthy fourth-quarter margins and profits. at Saks No doubt, sunday’s storm blanketing the Northeast and mid- Fifth Avenue ($4,990) atlantic regions and reaching 10 to 12 inches in some locations deterred traffic at many malls and put a dent in sales. yet the blizzard did little to dampen the mood. the day after Christmas is traditionally one of the biggest volume days of the year, leading to a bustling retail week/6 TODAY Valentino Christophe Lemaire’s Big Leap/3 purse at Fashion: The new creative director at Hermès Saks Fifth discusses his career. Avenue ($325) M&A Activity Picking Up/2 News: The year-end rush could spill into 2011. Ice Time/4 They Are Wearing: Skaters in New York and London stay warm while looking cool. Joe Gromek Means Business/10 Innerwear: Warnaco’s chief executive officer assesses the year ahead. Marc by Marc Jacob shoes allende mayte styled by sikora; violeta assistant: cosmetics; fashion makeup: misuzo miyake/mac model: sheilagh/elite; hair: andrew fitzsimons/artistsbytimothypriano.com; at Bergdorf Goodman ($195) PHOTO BY JOHN AQUINO 2 WWD, MONDAY, DECEMBER 27, 2010 WWD.COM Germany’s Takko waswas Adidas’ Outdoor Line Coming Back sold inin aa dealdeal valued atat By Rosemary Feitelberg Thomas and Alexander Huber have been re- $1.7 billion.billion. cruited to endorse the brand. The brothers ADIDAS IS PRePARInG To RoLL ouT ITS will front the more traditional Hiking-Trekking outdoor collection in the u.S. market – an ini- component of Adidas outdoor. tiative it first embarked on five years ago with The company also tapped female sport climb- limited success. This time around the effort ers to help with product development. unlike is part of a worldwide push and a seven-year traditional climbing, sport climbing is a style of business strategy. rock climbing that relies on permanent anchors, Building on the outdoor category’s strength especially bolts, fixed to the rock for protection. in europe, where Adidas has been sold for the The women’s collection will consist of past two years, the athletic brand plans to un- 53 styles of apparel and 40 styles of shoes. veil the new collection at next month’s outdoor Wholesale prices will range from $35 for a Retailer show. Adidas outdoor has also made in- fleece jacket to $250 for a Gore-Tex jacket. roads in Asia and in Russia, under the guidance There will also be a number of items made of Rolf Reinschmidt, senior vice president and from Gore-Tex’s recently launched Active Shell, global head of operations for Adidas outdoor. four-way stretch Windstopper and PrimaLoft M&A Deals Gain Momentum The Stateside debut in stores is slated for July. insulation. The Mountainsport side of things “We knew we had to earn our way,” will have a sleeker fit with more of a european By evan clark Reinschmidt said. “We are approaching the mar- flair as opposed to the Hiking-Trekking pieces, ket from a different product focus and with a which will be slightly roomier with more of a ReTAIL MeRGeRS AnD ACquISITIonS ARe PICkInG uP STeAM deeper integration into the outdoor community. conventional design, in what could be a harbinger of vigorous activity in the new year. Growth will come from doing things right and not “We focused the product line on being very After sitting out the financial crisis and the worst of the recession, through heavy advertising and marketing.” authentic and credible,” said Adidas outdoor private equity players are expected to start really flexing their muscles Seeking credibility with serious climbers managing director Greg Thomsen. “We want to in 2011. Mckinsey & Co. estimated that the buyout specialists are sit- and outdoor enthusiasts, mountaineer Reinhold keep very connected to the outdoor market.” ting on as much as $100 billion that could be put to work in retail. Messner, the first person to climb Mount everest Adidas outdoor is expected to be sold in 350 to The pre-Christmas rush for private equity deals led to last-minute without oxygen and the first climber to ascend 500 domestic retailers, as well as through Adidas’ acquisitions on both sides of the Atlantic last week. all 14 “eight-thousanders” — peaks more than seven freestanding stores and its Web site, he Leonard Green & Partners signed an estimated $1.6 billion deal 8,000 meters, or 26,246 feet — has been tapped said. The u.S. market will have about 90 percent to take arts and crafts retailer Jo-Ann Stores Inc. private, and Advent as a brand ambassador. He will be the front of what is sold in europe. The label should face International reached a $1.7 billion agreement to sell Takko, the man for the more technical Mountainsport off against competitors such as The north Face, German value-oriented fashion chain it has owned for three years, to group. Messner, who has also taken solo treks Arc’teryx and Salomon, Thomsen said. Apax Partners. across Antarctica and through the Sahara des- Adidas is not the only athletic label expand- It’s the second big retail transaction in as many months for Los ert, will be master of ceremonies for the first ing its range with subcategories. Columbia Angeles-based Leonard Green, which teamed with TPG and J. Crew oIA outdoor Inspiration Awards, which Adidas Sportswear is getting ready to unveil a new Group Inc. chief executive officer Millard “Mickey” Drexler in a $3 outdoor will sponsor Jan. 21 in Salt Lake City. higher-priced styles for city dwellers that will billion deal to take the company private. The firm has a range of re- In addition, extreme alpine climbers be geared for high-end stores. tail investments, from David’s Bridal Inc. and The Sports Authority to neiman Marcus Group Inc. and Rite Aid Corp. There might well be other deals — especially on the smaller side — that crystallize before new Year’s Day as buyers and sellers complete transactions that could bring tax benefits. earlier last week, oxford Industries Inc. acquired Lilly Pulitzer for $60 million and VF Corp. inked a $57 million deal to buy Rock & Republic out of bankruptcy. The purchase price for Jo-Ann, which translates into $61 a share, rep- resents a 34 percent premium to the stock’s Wednesday close of $45.63. Scott Cowen, Jo-Ann’s lead director and chairman of the special com- mittee that evaluated the deal, said, “While the company was not actively AUG. 12, 1976 seeking this transaction, once the offer was received and negotiated, the social netwoRk special committee determined that it was in the best interest of the com- Before the onslaught of celebrity designers in the Aughts, there was the Seventies phenomenon pany’s shareholders, as well as its employees and other partners.” of socialites-turned-designers. “Suddenly,” wrote WWD on August 12, 1976, “the social Ladies The deal includes a go-shop provision, which allows the company to are moving in on SA and fashion. Diane von Furstenberg and Mary McFadden have established solicit other offers though Feb. 14. The Hudson, ohio-based Jo-Ann has secure niches. Recent newcomers are Gloria Vanderbilt, Charlotte Ford and Susan Shiva. C.Z. 756 stores across 48 states. Guest is designing gardening wear.” The paper surveyed retailers and designers — “what do Antitrust officials still have to weigh in on Advent’s Takko sale, [they] think of the competition?” — as well as fellow socials on their thoughts. which is expected to be completed in the first quarter. Terms of the — Venessa Lau deal were not disclosed, but a source pegged the sale price at about 1.3 billion euros, or $1.7 billion at current exchange. Sales of the Frankfurt-based chain have grown about 30 percent Fred Hayman of Giorgio Beverly Hills: “Wearing a Charlotte Ford means nothing. Driving a Ford means since 2007 to 938 million euros, or $1.25 billion at the average 2010 something. Because someone has a name, I don’t think that qualifies them to be called a design- exchange rate.
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