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. Advent expanded the chain’s european presence by 450 er. I just don’t think that this influx of social names into the fashion business is a plus. People doors to a total of 1,500 stores. This year, the retailer also sped up the who are really fashionable don’t buy labels.” expansion of its 1982 urban concept, which focuses on basic items such Calvin Klein: “I don’t think the social designers would detract from the rest of us at all. It just adds as T shirts and sweatshirts. more business.” “Takko has grown very successfully and sustainably over the last Pat Buckley: “I don’t have the talent for that type of undertaking. As for some of the babes in the three-and-a-half years, reporting double-digit growth rates in the glob- woods who are designing clothes and doing interiors, some should crawl right back in the wood- ally difficult economic climate of fiscal years 2008 and 2009,” said Ralf work.” Huep, managing partner and global co-head at Advent. Rudi Gernreich: “I think it’s wrong of [the] industry to blow these social designers’ names out of Since 1984, the private equity firm has cut more than 250 deals in 35 proportion. We work very hard to do something good, then some social name comes along and countries valued at about $52 billion. Advent has been an active player the industry drops everything to promote them.” in retail and has invested in Stokomani in France, Milano in Mexico Betsy Bloomingdale: “I am apt to wear both designer and non-designer clothes. I don’t buy labels, I and Charlotte Russe in the u.S. buy fashion.”

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have in the past. homas Iannaccone FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK t

news and daily stock (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. ” movements at THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND — Christophe Lemaire, Hermès’ ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND

new creative director. Page 3. Photo by WWD.com/business-news. OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. WWD, MONDAY, DECEMBER 27, 2010 3 WWD.COM Lemaire Readies for the Big Time By Joelle Diderich isfied with the legacy he left for his successor, Felipe time being nothing is concrete. I will feel more comfort- Oliveira Baptista, whom he described as “intelligent able talking about it when I actually have something to PARIS — After a quarter-century in fashion, Christophe and talented.” show, but what is clear is that Hermès is all about this Lemaire is finally ready for his close-up. “I think I succeeded in projecting a certain vision of idea of traveling — traveling in space and time. It im- The low-key designer will vault into the big leagues the brand,” he said. “The problem with a brand is that if mediately conjures a nomadic spirit.” next season when he presents his first collection for the designer has a vision and the management does not Lemaire also said that Hermès would switch back Hermès since replacing Jean Paul Gaultier as creative have the same vision, or does not understand that vision, to more intimate gatherings after Gaultier’s runway director for women’s ready-to-wear at the venerable then there is obviously a disconnect. So I think that is extravaganzas, which featured everything from cacti luxury house in May. being addressed, but it was definitely an issue for me.” to motorcycles and — for his swan song collection in “I feel a little bit like a wine, actually,” Lemaire told In the meantime, Lemaire has taken advantage of October — a real-life dressage display. WWD. “For a long time, I was a too-young wine, and I the buzz generated by his new job by staging the first Lemaire’s sensibilities lie more with reclusive am improving with age.” runway show since 2003 for his signature collection, on Belgian designer Martin Margiela, who designed for During a wide-ranging interview in the Hermès between 1998 and 2003. “I cramped workspace above the store he think I will be walking in the footsteps owns, Lemaire, 45, discussed his vision of of Margiela more than Gaultier, even aitre modern dressing, his decade as creative di- m if I have a lot of respect for Jean Paul rector of sportswear brand Lacoste and the Gaultier and his virtuosity,” he said. future of his own business. However, that probably does not

“In the last two or three seasons, people Dominique include reverting to the Margiela tra- have really started paying attention to my dition of staging shows in front of a work,” he said. “I feel that I have reached a handful of the faithful at the compa- certain maturity and achieved a consisten- photo by ny’s recently renovated Paris flagship cy that I did not always have in the past.” at 24 Rue du Faubourg Saint-Honoré. Lemaire started his career as an assis- Lemaire may reject the fashion system, tant to Thierry Mugler in 1984 and, after a with its showmanship and insatiable stint at Christian Lacroix, founded his own cycle of trends, but he is beginning to label in 1991. He joined Lacoste in 2000, appreciate the value of publicity after winning critical acclaim for revamping the struggling for two decades as a small in- brand that is famous for its crocodile-logo dependent brand. polo shirts. “I have reached a point where I un- Though he said it was too early to talk derstand that in this profession, every- specifics, the designer has clear ideas about thing is a question of circumstances,” where he wants to take Hermès, at a time Lemaire said. “ Yo u can have all the when his style of minimalist fashion is en- talent and vision in the world; if you joying a revival. don’t have the resources to express “I think that it’s time to go back to a your ideas and showcase them in a very more honest vision of fashion, and that competitive environment, then it’s a bit there is room for a simpler, more pared- like Don Quixote — the battle is lost in down wardrobe that is better suited to ev- advance.” eryday life,” he said. “I have always cam- His plans for expansion were scut- paigned to bring quality and, if possible, tled after the Japanese financier spear- poetry to everyday life. Yo u don’t change heading the project suddenly died, leav- your wardrobe every six months. Yo u build ing Lemaire with just one fully owned it up over time.” stand-alone store, in the Marais district Lemaire said he was proud and sur- of Paris. The designer is looking for new prised that Hermès chose him to succeed investors to guarantee the future of his Gaultier, despite his low media profile and label, which operates on a shoestring relative lack of experience in luxury goods. I feel a little bit like a wine, actually. For a long budget. Nonetheless, he is confident he is up to the “Am I going to continue? That is the challenge. time,“ I was a too-young wine, and I am improving question we are asking ourselves now,” “It’s as if the moment had finally arrived he said. “Of course, I would like to. It’s for me to show what I’m capable of,” he with age. really just a question of financing.” said. “For various reasons, I have always Lemaire did not exclude the possi- ” — Christophe Lemaire lacked either the maturity or the means to bility of approaching Hermès for fund- develop my own brand, and at Lacoste, I ing in the future. “Why not? But it’s too was working under constraints that meant early. We don’t know each other well that, even though I think I did a good job, I was never the sidelines of couture week in July. Held on a rooftop enough yet, and I haven’t proved myself yet,” he said. able to unleash my full potential. So I hope to be able to overlooking the Paris skyline, the display proved the In the meantime, he is looking forward to the new do that at Hermès.” perfect showcase for his East Meets West aesthetic, with horizons that working for a luxury powerhouse will Lemaire noted that during his tenure at Lacoste, shades of early Eighties sporty chic. open up. his catwalk direction did not always filter down to the “My inspirations are Oriental and Western,” he said. “I think I’m going to learn a lot,” Lemaire predicted. products sold in stores, but he pronounced himself sat- “I can’t talk too much about Hermès, because for the “I feel very lucky and happy — but nervous, as well.” MEMO PAD KEEPING UP WITH THE KARDASHIAN WINTER EQUINOX: Considering how widely Miami, Washington and San Francisco. And for those who COVERS: Kim Kardashian and known Terry Richardson is for his body of can’t quite get enough Richardson, an online video at her sisters have become the gift work (interpret that as you will), his latest equinox.com will give them a look at the Malibu shoot. that keeps on giving for celebrity shots for Equinox seem like a natural fit. Equinox’s creative director, Bianca Kosoy, said, “His weeklies such as In Touch, Life Aiming to blur the lines between fashion, signature gritty flash photography makes the viewer feel as & Style and Us Weekly. During fitness and lifestyle, the 51-unit health club if he or she has just witnessed a private moment or was let the past year, they have provided recruited the celebrated lensman for its in on a little secret.” a fairly accurate barometer of new outdoor, print and the family’s popularity, and the digital ad campaign. NO SALE YET: Robbie Myers, Joe Zee constant coverage isn’t likely Risqué as ever, he A Terry Richardson shot for the and their colleagues at Elle will have to slow down anytime soon. (In captured well-chiseled new Equinox campaign. to wait a little longer to see if they’ll January, the E network will begin models in somewhat have new cousins over at Hearst. airing a spin-off show, “Kourtney compromising Elle’s French owner, Lagardère, is & Kim Take New York.”) positions. One shot believed to have two offers for its Kardashian has proven selling shows a woman wearing publishing portfolio, one from Hearst power with weeklies, and it appears only a lace bra and and one from Germany’s Bauer that she’s also been embraced by an unbuttoned shirt Publications. Reportedly, Bauer has the monthly readers. According to surrounded by Polaroid proposed 650 million euros to 700 Rapid Report (through November), close-ups of her fairly million euros, or $850.3 million to Shape had its best-selling issue of bare body parts. In $915.7 million at current exchange. the year in June on newsstands, W’s Kim Kardashian cover. another image, a model There are a few roadblocks in the with Kardashian on the cover. The is bottoms-up in a black way of a sale, namely control over reality star appeared on Allure’s September cover, which hot rod with her naked legs dangling Elle, but sources said a deal (if it marked its third most popular seller of the year, and most out the window. The campaign, which happens) won’t happen until after recently, W made a splash by featuring her naked on its is being curated in-house for the first the holidays. Nonetheless, some November art issue. W’s Kardashian buzz led to its second time, breaks in January magazines. investors are anticipating a deal, highest seller of the year (tied with Megan Fox in March). Phone kiosks and other outdoor trading Lagardère’s stock up 4.9 With figures like these, expect to see more and more and signage will go up in New York, Los percent to 30.84 euros, or $40.35, more of the Kardashians in the new year. — Amy Wicks Angeles, Chicago, Dallas, Boston, earlier last week. — Jennifer Weil 4 WWD, MONDAY, DECEMBER 27, 2010

Blades of Glory Pop-up outdoor ice skating rinks have become winter hot spots on both sides of the Atlantic. In Manhattan, Bryant Park turns skater-friendly every season, while in London, historic sites like Alexandra Palace, the Tower of London and Somerset House are picturesque venues. Wherever the rink, frigid temperatures have inspired visitors — from obvious beginners to even a few pros — to play with layer upon layer of cozy fashion. WWD, MONDAY, DECEMBER 27, 2010 5 WWD.COM yle ericksen k

im jenkins; new york by t

by Photos london 6 WWD, MONDAY, DECEMBER 27, 2010

Chico’s necklace, Back in the $58.

White Holiday Spirit House|Black Market coat, $168 Continued from page one characterized by returns and exchanges, gift card redemptions and price cuts hitting new highs. Major sales at such stores as Saks Fifth Avenue, Bergdorf Goodman and Nordstrom kicked off Sunday. “The day after Christmas is a very important day,” said Brendan Hoffman, presi- Michael Michael dent and chief executive officer of Lord & Taylor. “It looks like today [Sunday] is Kors vest at Lord starting out strong. Maybe people were getting out early to beat the snow, but the & Taylor, $250 storm will certainly affect the malls. Yo u can’t control the weather, but we’ll get through it. Up until today, we were up double digits. I don’t know what the storm will do, but the customer has been continuing to respond. This season, gains were across the board. For Lord & Taylor, it’s been the best Christmas in a number of years — five years for sure.” “It’s a top 10 day for us,” said Pete Nordstrom, president of merchandising, Nordstrom Inc., referring to Sunday, which marked the start of the chain’s half-yearly men’s wear sale. “Sales of gift cards were up this year so I think that bodes well for today going forward through January.” Cashmere by “We continued to do better than our plans,” Nordstrom added. “We’ve been Bloomingdale’s exceeding sales growth plans. Sales have been growing faster than inventory sweater at for several months. Inventories are really lean. Merchandise is flowing in well. Bloomingdale’s, Newness drives the business. We are having a $128 really good regular-price season. Clearance is not dominating the business like a couple of years ago. Shoes, particularly women’s in all price points, were really strong. It’s been that way for over a year.” He cited Uggs and Toms as standouts. “Jewelry has been good across all price points, and the watch business has been really good.” “In terms of store traffic, conversion rates, sales and, for most retailers, margin performance — this is what a good Christmas looks like,” said Craig R. Johnson, president, Customer Growth Partners. “It’s going to be the best year-over- year sales growth in at least five years —in the 6 percent range for the November-December period, excluding auto sales, restaurants and gas.” Johnson estimated America’s retail sales totaled $521 billion, brick-and-mortar and e-commerce com- bined, far surpassing the $508 billion registered in 2007, the last year before the recession. Apparel-accessories, he said, would be up in excess of 7 percent, marking the strongest growth since 1999 when the category rose 7.3 percent. “The single biggest factor is there’s a lot of pent- up demand,” Johnson said. “People are out buying again.” He said men’s wear, accessories and toys have been strong,

J Brand denim We continued to do better than leggings at “ Bloomingdale’s, our plans. We’ve been exceeding $139 sales growth plans. Sales have been growing faster than inventory for

several months. Inventories are really Burberry bag at Bloomingdale’s, lean. Merchandise is flowing in well. $1,095.

Newness drives the business. makeup:

— Pete Nordstrom, Nordstrom” Inc. allende mayte

while electronics have been more mixed, with unit sales up but dollar sales down due to deflation on flat-screen TVs. Though precise sales results won’t be available until next week when many major retailers report

December comparable-store sales, it is believed that styled sikora; by violeta Macy’s, Toys ‘R’ Us, Home Depot, Lowe’s, Tractor Supply, Nordstrom, Target, Costco, Lululemon, Kohl’s, Tiffany, Ross Stores, Anthropologie and Zumiez, among others, had winning holiday performances. Abercrombie & Fitch is showing improvement with sharper prices and discounts domestically, while overseas stores remain less promotional. On the other hand, Sears, Talbots, American hair: andrew fitzsimons/artistsbytimothypriano.com; Eagle, Zale and Wal-Mart seem to be falling short. Marc by Marc Neiman Marcus and Saks Fifth Avenue came Jacobs slippers through the season on an up note, with the luxury at Bergdorf

sector showing renewed life. At Neiman’s, “We saw Goodman, sheilagh/elite; customers back in the stores. They were shopping, clearly not $195 model: at the rate of before the recession, but better than what we expected,” said Ginger cosmetics;assistant: misuzo fashion miyake/mac WWD, MONDAY, DECEMBER 27, 2010 7 WWD.COM

Reeder, vice president of corporate communications, Neiman Marcus Group. “Women’s accessories, handbags, shoes and some jewelry stood out. Men’s did well and it’s been awhile since we’ve been able to say that. Customers are responding to new things. As Talking Points resort and spring merchandise come in, they respond.” “We feel pretty good about the season,” noted Ginny Hershey- • Best holiday season in four to five years, with gains seen ranging Lambert, Bergdorf Goodman’s executive vice president and chief from 3 to 5 percent. merchant. She said there’s been a good response to “positive, • Apparel and accessories viewed as the winning category, fun items” such as Paul Morelli meditation bells or those items followed by electronics, jewelry and gift cards. that represent tradition and investment, such as Monica Rich • Luxury rebounded and online continue to soar. Kosann heirloom lockets. She also cited products with fur and • Stores controlled inventory with aggressive but planned-in- cold weather items, specifically coats from Moncler and Loro advance promotions that spurred spending. MixIt Piana. “I feel like the foreign traffic and tourism seem to be a • Concerns remain over shoppers’ mood in 2011 given rising necklace little better than last year and that our core clients continue to product costs and continued high unemployment. at J.C. be loyal,” Hershey-Lambert added. Penney, Regarding traffic in the store on Sunday, Hershey-Lambert $24.99 said despite the storm, “It seems to be OK. We started our after- We’re bullish. All of our customer metrics is looking upwards. We Christmas sale. Women are happily buying shoes,” offered at 50 continue to invest money in our stores.” percent off, while ready-to-wear is running 60 percent. But for now, Hoffman and other retailers want to bask in the “It’s everybody’s sentiment that luxury is back, and I think in a Christmas glow. big way,” observed Henri Barguirdjian, ceo of Graff in America. As reported, the National Retail Federation raised its holiday “We certainly saw it at Graff with double-digit increases in sales forecast two weeks ago to a 3.3 percent increase versus its sales. New York was phenomenal, almost 30 percent ahead. previous outlook for a 2.3 percent increase. While brick-and-mortar We had a lot of South American clients, particularly sales were up, online shopping excelled, with comScore measuring Brazilians, and we started to see a Mainland Chinese cus- a 12 percent increase in sales for the Nov. 1 through Dec. 22 period, tomer for the first time in a significant way. with $28.36 billion spent online to that date, the firm noted. “People are feeling more relaxed with the econo- In a significant shift, online shopping was more spread out than my,” he continued. “Maybe we have turned the cor- in past years, with buyers shopping on Thanksgiving Day and as late ner. Obviously, unemployment is a big factor. Still as Dec. 23, rather than only on Cyber Monday and midseason. For people are a bit more confident. We sold quite a the week ended Dec. 19, spending was up 14 percent over the year few very important stones. Precious stones, like before, to $5.5 billion. gold and art, are a nice refuge for a small per- “Shopping on Christmas Eve was good,” said Susan Lyne, centage of your assets. Also, color is back. We chairman of Gilt Groupe. “Christmas Eve shopping for us would sold a lot of colored stone jewelry, more so be obviously self purchases and people who are not doing some- than in past four, five years. Clients are look- thing else on Christmas Eve. I’m surprised we did as much rev- ing for original design and colored stones. I enue as we did. We sold about 6,000 units on Christmas Eve day am very bullish for next year.” and did probably 25 percent of what we do on a typical day, and “I think the season has been exceptional,” 20 percent more of what we were seeing at the height of the shop- said Joel Bines, managing director, AlixPartners ping period.” The shipping deadline for Gilt was Dec. 21, and Dec. LLP. “It’s certainly been well planned by the 23 for expedited shipping. retailers. My mall walks and store visits tell The week ending Dec. 4 was Gilt’s biggest of the season. “It was me that the promotion activity, while very clearly the week when our members went into high gear to buy their loud, appears to be based on [advanced] Christmas gifts,” she said. “For the entire holiday shopping period, plans. There’s real signage and merchandise which is the day after Thanksgiving to the 23rd, we were up over 60 stacked out for ‘bogos’ [buy-one, get one at a percent year over year.” percent off]. I would call it ‘organized promo- Gilt focused more on giftable items this year. Anything nonsized

Apparel is going to come out as the big winner. We’re calling 2010 “‘The Year of the Sweater.’ ” — Joel Bines, AlixPartners LLP

tional chaos.’ It gives consumers impres- was popular, including jewelry, cashmere, handbags, candles, fur- sion of deep discounts but it’s already niture, rugs, gourmet food, Best Made Co. axes, Leatherman tools, [baked] in the merchandise plan. vintage watches, Vespa scooters and socks. Unusual sales such as “Apparel is going to come out as the big the Volkswagon Jetta, vintage Rolex watches, admittance to race car winner,” Bines added. “We’re calling 2010 driving schools and snowboarding trips in Japan drove a lot of traf- ‘The Year of the Sweater.’ People are buying fic, she said. apparel again for lots of different reasons. Traffic and sales coming from mobile was up about 20 percent For starters, over the last two years, apparel over the holidays, typically from 6 to 9 percent on weekdays and retailers have done a much better job of get- about 20 percent on weekends, said Lyne. ting the price-value equation right for the As for the coming year, “I think there is more optimism about the customers. They’ve become really expert in economy and the state of people’s personal economics,” she said. driving cost out of the manufacturing, over Helping factors are a good market and certainty about taxes. “The the last two years, as retailers looked inward more people know how to plan for the coming year, the better they on how to maintain margin in a declining feel,” Lyne said. Gilt also expects mobile to continue to grow. “It’s sales environment. They also really benefit- like having a store in your bag,” she said. ed from enormous pent-up demand.” Sales were also strong for GSI Commerce, which owns Rue La Among the season’s best-selling products: La and runs Web sites for more than 500 customers, including handbags, shoes, luxury items, men’s wear, Ralph Lauren, Kate Spade, Levi’s, American Eagle Outfitters and electronics — particularly iPads and smart Calvin Klein. phones — jeggings, jeans in new silhouettes “For the past several days, online shopping has held up well,” and statement jewelry. said GSI Commerce executive vice president strategy and market- The big question is what happens right after ing Fiona Dias. “The biggest change we see this year is customers the holiday. “[Next year] is going to be extremely are shopping closer to Dec. 23. They are more confident in online challenging,” Bines said. “The raw material input shopping and buying later. A few years back, customers would be prices on products are way up. The price of gold, the reluctant to buy after mid-December for fear of packages not arriv- price of cotton and the costs surrounding logistics and ing. This is no longer the case.” transportation are all way up. That will put pressures Nonetheless, although GSI’s cut-off for shipping by Dec. 24 was on margins in 2011, forcing [retailers] to have higher Dec. 23 at 10 p.m. Eastern time, its biggest day was Cyber Monday prices or lower margins and I don’t think the consumer and its biggest week Thanksgiving week. The company expects a is ready for higher prices.” strong January, partly thanks to gift card redemptions and returns He’s also concerned about fuel costs. “What I hear and exchanges, said Dias. Dolce & about the price at the pump going into 2011 makes At the stores, some of the hottest last-minute gift categories Gabbana dress me nervous. That’s one number that really changes at Kmart and Sears included consumer electronics such as flat- at Saks Fifth consumer behavior. When the price to fill up the screen TVs and digital cameras, apparel including coats and cozy Avenue, $2,595 tank jumps $5 or $10, that causes consumers to take a knits, home appliances and toys, said spokesman Tom Aiello, add- step back.” ing that Kmart lowered prices on more than 1,400 “must-have” “The cost of manufacturing and sourcing is a real issue,” toys of the season. For example, all Nerf Sports items were 30 per- said Nordstrom. “Right now, it hasn’t started to play itself cent off, Toy Story toys were marked down 20 percent and Mattel out exactly, but it means prices are going to go up to some games, 25 percent. degree. I don’t think we can absorb all of it. It depends on Sears’ last-minute deals for Dec. 22 to 24, included 40 percent how much. Two or three percent yes. Ten to 15 percent is off a Kenmore Energy Star conventional dryer, regularly $659.99, another story.” sale price, $395; a Keurig B40 Single Serve Coffeemaker, regularly “Pricing obviously is a concern,” added L&T’s $119.99, sale price, $109.99; a choice of Craftsman Nextec Lithium- Hoffman. “It will depend on the category, but we are Ion Multi-tool or Hammerhead Auto Hammer, on sale for $79.99, not going to compromise on quality. The customer will still be able to find great values and promotions. Continued on following page 8 WWD, MONDAY, DECEMBER 27, 2010 WWD.COM Back in the Holiday Spirit

Continued from previous page the lowest price ever. Coats, fleece, sweaters and sleepwear for the family was reduced 50 percent to 60 percent and one-carat diamond heart jewelry, regularly $299.99, was on sale for $99, plus all other fine jewelry was reduced up to 60 percent. Theory Kmart’s last-minute buys included Kodak’s M530 digital camera, regularly $99.99, sale price, $79.99; the Garmin Nuvi vest at 265W navigation system, sale $99.99, a $50 savings; cozy socks, regularly $8, sale price, $4; Pink K women’s slippers, Bergdorf starting at $3.99, and Coleman men’s boots,$14.99 for select styles. Goodman, Aiello said this holiday season Sears and Kmart saw two big new trends that included more customers $895 using “our Buy Online-Pick Up in Store option than ever before.” There was also an increase in the number of customers using mobile apps and the mobile-enabled (WAP) site Sears2go whose app produced big sav- ings on selected products. “This is validating our approach to rapidly enhance shopping for our customers by fusing our online, mobile and store experiences,” Aiello said. “For example, on Cyber Monday we had a Sunday circular with QR codes. When customers scanned the code with their mobile device, they were brought directly to that sale item on their mobile device and could purchase it for in-store pick-up to save money on shipping.” Taubman Centers Inc., which has car counters in some of its malls, reported that Beverly Center in Los

Sunday afternoon on Manhattan’s Lexington Avenue. The blizzard hurt the day’s sales but didn’t dampen the upbeat tempo for the season.

MNG by Mango dress at J.C. Penney, $120 mages i etty g / afp / allende mayte honda

stan Portolano

by styled by gloves at Saks Fifth

photo Avenue, $65. sikora; violeta It looks like today [Sunday] is starting out strong. Maybe people“ were getting out early to beat the snow, but the storm will certainly affect the malls. You can’t control the weather, but we’ll get through it. ” — Brendan Hoffman, Lord & Taylor

Angeles was up midsingle digits in terms of the number of cars counted between Black Friday and Christmas Eve while Dolphin Mall in Miami was up double digits. “Stores surveyed at a variety of our shopping centers across the country said that they were trending up midsingle digits to double digits for the holiday season on average,” assistant: cosmetics; fashion misuzo miyake/mac said spokeswoman Karen MacDonald. “The strongest categories included apparel, footwear and luxury.” But she also noted that the storm did reduce traffic at some malls Sunday, including Stamford Town Center in Stamford, makeup: Conn., where heavy snowfall was expected, and Woodfield Mall in Schaumburg, Ill., which was already covered with snow. Target offered consumers a way to save money while helping others: in the final week leading to Christmas, shoppers could trade in used cell phones, video games and iPods at Target Mobile centers to get credit towards any Target purchase. The retailer said that more shoppers than ever are using mobile technology and that a last-minute option this season has been Target Mobile GiftCards that consumers load to their phones then text to recipients. Wal-Mart extended cut-off dates for free shipping on some 60,000 products to Dec. 20 at 11:30 p.m. Meanwhile, site-to-store pick up was extended from Dec. 17 last year to Dec. 20 this holiday season. Also, the Pick Up Today program for online orders placed up to Dec. 23 at 6 p.m. could be picked up that same day at select Wal-Mart locations. The world’s largest retailer offered last-minute deals and gift card bundles for popular gifts this season, such as a $20 gift card with the purchase of a Nintendo DSi, $149; a $50 iTunes gift card with the 8GB iPod Touch, $225, and new Facebook credit gift cards in $5, $10 and $15 denominations when andrew fitzsimons/artistsbytimothypriano.com; purchased in stores and $10 and $25 denominations when bought online. The gift cards can be used to buy social games. J.C. Penney said holiday staples such as Godiva chocolates along with Discover Kids and Sharper Image and pets are categories that “have made it back onto the list this season,” a spokesman said. “We have a big Animal Planet gift statement. We’re also seeing a return to stocking stuffers. We’re offering some fun and innovative products at $4.99 and $9.99 price points that have been very popular such as photo coasters for $9.99 and travel bingo, $4.99.”

— With contributions from Sharon Edelson and Cate T. Corcoran model: sheilagh/elite; hair: WWD, MONDAY, DECEMBER 27, 2010 9 WWD.COM Fine Jewelry Report New Online Retailer Takes Aim at High End By Lauren Benet Stephenson ence online. Buccellati is one of the first brands presented by Ajaline. we are currently testing AjAline, A fine jewelry flAsh-sAle with them, providing the best image quality and web site set to launch on feb. 1, wants to adapt organizing training sessions for their customer a model crafted by online retailers such as Gilt service department. Based on initial results, we Groupe and rue la la. will discuss with them the possibility of exclu- Co-founder Meeling wong, a former presi- sive product development and social events.” dent of john hardy, said she is curating Ajaline. lagos, which will also go on sale in com to cater to brand concerns about how items february, sees the site as “a win-win for lagos will be sold. Only three to five will be featured and retailers, as we are able to quickly react each week, and each flash sale will be open for and sweep out underproductive style and sell three days, with a 24-hour preview. Discounts full-margin product in our regular channels,” will range from 30 to 70 percent off retail, with said the brand’s vice president, Chris Cullen. prices from $500 to $50,000. The first sales will “This site is all about jewelry,” wong said. spotlight designs from Buccellati, lagos and “They know who i am. They know Temple st. Clair. that i’ve built brands and i know fine jewelry has been slow to embrace e- how hard it is to build brand commerce, but wong said she tells companies, equity, and you don’t want “you guys think you can control the internet. to lose your brand equity you can’t. you can control where you are and over just one sale.… the way you’re presented.” They’re with similar wong, who is starting Ajaline with another brands…not next to former consultant, jim Conte, began her career juicy Couture or at Carolee Designs in 1984. she worked as the Jim Conte Omaha steaks.” national sales manager for David yurman be- and Ajaline is funded fore joining john hardy, which she left after Meeling by Zadora found- seven years to start her namesake jewelry con- Wong er Andreas von sulting firm. During that time, she formulated Zadora-Gerlof and the idea for Ajaline. several unnamed pri- As a consultant, “i was challenged in turning vate equity partners. inventory,” she said, adding that as much as 20 The company expects percent of fine jewelry and watches go unsold an- to earn 30 to 40 percent nually in the U.s. “i’d say, ‘what’s all this sitting profit on each sale and is here? why are you producing more goods when projected to generate volume you have all these goods sitting here?’…i’m very of $10 million in its first year. aware of the kinds of inventory that brands carry.” “This is about a different channel and Alberto Milani, chief executive officer of Buccellati, which will be sold on Ajaline. opportunity.…The world outside — if you live in Kansas or louisiana — you don’t com in february, said the exclusive focus on jewelry and an emphasis on customer have access to these brands and sample sales,” wong said. “On the internet, you have service were attractive selling points. to bring it to them. There are very sophisticated shoppers in north Dakota who want “we believe…an interesting benchmark will be created for Buccellati’s first experi- to access Buccellati and Temple st. Clair.”

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The ⇒ rst Fair of the world gold precious metals and jewellery sector ”compass”: where are we headed?”. renovation plan that will be launched and jewellery calendar opens at worldwide. Famous faces from the worlds of in the month of May. Innovation, Fiera di Vicenza in January. VICENZAORO is an appointment Italian and international enterprise creativity, craftsmanship, research, for uniting the international and politics will be present, including development, and excellence are the Just a few weeks before the opening jewellery community, but above a guest of honour, Mr Ding Wei, terms around which the new Fiera di of VICENZAORO First, the all for gathering together different Ambassador of the People’s Republic Vicenza strategies will be developed. international gold and jewellery fair, styles and viewpoints. To this view, of China in Italy. The fair becomes increasingly and Fiera di Vicenza is abuzz with this will be the ⇒ rst annual event This is an event that will take place ‘global’ also thanks to T-Gold, the preparations. The CEO of Fiera in the world to present previews of in the Palladio Room of Fiera di show dedicated to the machinery and di Vicenza, Mr Roberto Ditri, will the 2011/2012 jewellery collections, Vicenza on 15 January at 12 o’clock instrumentation for working gold inaugurate the gold and jewellery opening with an international round to analyse the future of jewellery and and jewellery that takes place during show, one of the most important table to discuss the future of jewellery present the world premier of the 3D the same period as VICENZAORO moments for B2B contacts in the entitled ‘Italian jewellery needs a new video of Fiera di Vicenza. First, where for the ⇒ rst time an anti- The January Fair represents a counterfeiting service has been set up commercial and communications to protect the processes and products response that will take the form of “Made in Italy”. A manifestation the presentation of the guidelines for that gains prominence year by year,

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nies.…in part, their value is determined on how relevant they are. We are fortunate because our brands are at the top of the trade in the number-one and number-two posi- tions. calvin klein [underwear, jeans and men’s accesso- ries] is now 75 percent of Warnaco’s revenue. calvin klein is the number-one global designer underwear brand and calvin klein is certainly the jewel of Warnaco’s crown. if you think about even Warner’s, it’s the leader in the underwire bra category, and speedo is the number-one brand in competitive [men’s and women’s] swim with a 70 Q percent market share. and our licensed chaps sportswear is the largest men’s business at kohl’s.

WWD: do you think the continuation of the Bush tax cuts will help build business, especially at retail? J.G.: absolutely. the continuation of the Bush tax cuts will continue to keep extra money in the wallets of people who will have more disposable income and will result in A revenues for retailers. it’s a great thing for the economy. WWD: What is your take on retail business as we ap- proach 2011? J.G.: i’ve been a retailer for 40 years.…2010 has been a recovery year for retailers, and most have been able to claim back a good portion of what they lost in 2009, but i’m not sure about 2008.…as for where the business is coming from, it’s apparel and accessories, which are seeing a major resurgence.…it seems to be one of the best christmases for apparel in a long time.

ERICKSEN KYLE WWD: Why is there such tremendous appeal for calvin klein underwear and jeans in china, which you have

PHOTO BY described as the largest single country outside the u.s., with a projected 40 percent increase in sales in 2011? lion as retail sales jumped 21 percent to $142.7 million J.G.: the brand has been aggressively marketed for 40 years and same-store sales rose 9 percent. and there is already an understanding of the brand itself. Warnaco operates 1,241 calvin klein stores world- it’s modern, minimalist, yet with an urban sensitivity, and Joe GroMeK wide, including 160 full-price and 112 outlet units, it looks american. that look works just about everywhere. 967 in-store shops and three e-commerce business- Joe Gromek, president and chief executive es in the u.s.: cku.com, calvinkleinjeans.com and officer of the Warnaco Group inc., says he’s a retailer speedousa.com. there are more than 590 calvin klein It’s important for companies to at heart. retail stores operated by third parties under retail li- he took over the top job at Warnaco in 2003, steer- censes or distributor agreements. “align themselves with their brand ing the company back to a growth track after it emerged Gromek shared his thoughts on where retail and from chapter 11 in 2003 by building and maintaining wholesale business is headed. and a brand has to be relevant powerful global brands such as calvin klein, growing — Karyn Monget the direct-to-consumer business and leveraging an in- ternational platform that generates more than 50 per- and have value today. cent of the company’s revenues. WWD: Where do you see the intimate apparel industry — Joe Gromek, The ”Warnaco Group Inc. Gromek was chairman and ceo of Brooks Brothers going in 2011? from 1995 to 2002, and before that, oversaw merchandis- Joe Gromek: i would suspect 2011 will continue to be an ing in jeans and innerwear at saks fifth avenue and excellent year for intimate apparel, and consumers will WWD: is Warnaco looking to do acquisitions in 2011? Lord & taylor. continue to be back in the shopping malls. But one of J.G.: We have a very strong balance sheet. at the beginning as production costs rise, particularly for cotton, the challenges in 2011 will be in terms of rising costs.… of the fourth quarter, we had $200 million in cash on hand, labor and freight, Gromek is concerned about the im- We will pass along 70 percent of rising costs through a no long-term debt, and one rating agency just raised us to pact. But with $200 million in cash and no long-term combination of price increases and product expense re- investment grade. We’ve been building brand franchise debt, he said Warnaco next year will be in a strong posi- duction and margin out as good or better.…We are posi- and distribution worldwide.…We would be looking at tion to hunt for strategic acquisitions of lifestyle brands tioned for the first half of 2011, but we have not gone to strategic acquisitions at global lifestyle brands, and these with worldwide reach. market yet with fall 2011. We’ll do that in January. the kinds of brands would have to have a global reach. We in the quarter ended oct. 2, Warnaco’s net income grew second half will be the challenge. are actively looking, given our balance sheet, at different 39.9 percent to $41.5 million, or 90 cents a diluted share, product categories. the ideal brand would be dual gender from $29.7 million, or 63 cents, in the year-ago quarter. WWD: how important are brands in a tough economy? in intimates, accessories and potentially swimwear. revenues increased 14.6 percent to $596.8 million J.G.: Brands are incredibly important in terms of the con- from $520.9 million, including 12 percent growth in fidence of consumers.…it’s important for companies to WWD: is there any truth that you might be leaving both the calvin klein and international businesses. align themselves with their brand and a brand has to be Warnaco anytime soon? Wholesale volume improved 12.7 percent to $454.1 mil- relevant and have value today. think about some compa- J.G.: that’s a bad rumor. i have a contract that goes to 2012.

BeAUTY BeAT The Specifics line. Dermalogica Taps Ginsberg as CEO By Rachel Brown Ginsberg. “i’m excited to lead the globally recognized dermalogica brand to the next chapter of its long-stand- dermaLoGica named dan GinsBerG, Who Led ing history.” the stratospheric growth of red Bull north america Jane Wurwand said, “dan Ginsberg is recognized as during a five-year tenure as the energy drink company’s an innovator and creative strategist across the related chief executive officer, as ceo, effective Jan. 1. disciplines of branding and marketing, and i, for one, age group and are richer both in actives and hydrating the carson, calif.-based skin care company said am very excited to be planning our future with dan.” ingredients than its existing offer. Wednesday that Ginsberg will guide expansion as it en- dermalogica was growing at a rate of around 20 Gisela pitanguy, daughter of the surgeon and direc- ters its 25th year in business next year. dermalogica has percent a year prior to the recession, and major beau- tor of the cosmetics brand, noted the initiative “involves been shoring up its executive ranks in the last few years ty players had been feeling out its interest in a sale, traveling to the brand’s 200 or so points-of-sale world- and appointed Jerry Wenker president and chief oper- but the Wurwands have so far rebuffed entreaties. wide to interact with customers. i meet customers and ating officer in 2007, when husband-and-wife founders dermalogica is estimated by industry sources to gener- potential clients to listen to their needs and explain our and former co-ceo’s Jane and raymond Wurwand ceded ate $100 million-plus in annual revenues and asserts it philosophy,” she added. daily operational control. is the leading professional skin care brand. the private- ultimate repair cream includes Gold repair com- an experienced executive outside the skin care field, ly held company has nine branded concept retail spaces plex, a mix of peptides that’s designed to stimulate col- Ginsberg adds managerial and branding heft that could worldwide and sells its products to more than 5,000 pro- lagen; gold particles, and natural actives including phy- make dermalogica an attractive acquisition candidate. fessional spas, salons and other skin care outlets. salis, millet shoots, ceratonia and shea butter. ultimate Jane Wurwand has acknowledged being approached in eye cream, meanwhile, includes a peptide-ceramide the past. complex mixed with rose butter to restore genetic mark- Before joining red Bull in 2002, Ginsberg was chief ers and repair collagen and elastin, as well as white marketing officer of fast-food chain hardee’s food Pitanguy Launches Two-Item Line lupin for its decongestant properties. systems inc., which was purchased by cke restaurants PArIS — Beauty by clinica ivo pitanguy has introduced the products are priced at 225 euros and 129 euros, inc., and co-founded the advertising agency dGWB. specifics, a two-product line for women over 40 who respectively, or $294.40 and $168.79 at current exchange. “Branding is my professional passion. my exper- want to put off cosmetic surgery or prolong its effects. Beauty by clinica ivo pitanguy is carried at neiman tise has always been to lead creative teams in gener- ultimate repair cream and ultimate eye cream are marcus and Bergdorf Goodman in the u.s. ating consumer awareness and brand loyalty,” said the brand’s first products specifically intended for this — Alex Wynne WWD, MONDAY, DECEMBER 27, 2010 11 WWD.COM FASHION SCOOPS A New Twist for Pendleton SWANK DESIGNS: Hilary Swank looks set to singled out Louis Catherine By David Moin reverence.” He also said the collection be the next celebrity to try her hand at the Vuitton and Malandrino in will be made in the u.S., sticking to a fashion business, WWD has learned. The Chanel for their Beijing. Pendleton, a century-old brand Pendleton tradition. two-time Academy Award winner has been grand freestanding steeped in americana, is stepping out “We tried to create pieces that you working with the DMA Designers Management stores. Retail with a new line called Pendleton, the can wear to work and into the evening,” Agency, developing a concept for an apparel in general is Portland collection, for the bridge mar- crissman said. “For example, there’s collection with an athletic bent. in another ket. It will be unveiled in January for fall one dress that’s sophisticated, with a de- DMA co-founder Marc Beckman said stratosphere, 2011 selling. tachable shearling collar. It might be too Swank initially thought about a T-shirt line she added. The “this is a new strategy with a new con- dramatic to wear at work, but you can that “provided designer said of sumer in mind,” Mort bishop 3rd, presi- take it off and put it back on at night to Hilary motivation and Beijing’s luxury dent, Pendleton Woolen make a statement.” Swank inspiration,” but malls: “They Mills, told WWd. “It’s the range includes given her athletic are not even more progressive in fash- dresses, priced around background — comparable — ion. the fit is trimmer, for $200; outerwear such Swank used to the stores are a younger customer — and as $700 reversible jac- be a competitive three to four it’s made in america.” quard coats as well as gymnast — it times bigger than Perennial pleated toboggan coats, shirts in quickly evolved the ones we have skirts, wool plaids and the $200 range, and ties into a line with here. It’s really Western wear are the at $78. there are also a sporty bent. impressive, what’s going on there.” heart of Pendleton, but pants, dresses, knitwear, “Our platform is the Portland collection ponchos and accessories, a contemporary, HOT TOPIC, ESHAYA DEAL: Hot Topic Inc. will have a designer such as shoulder bags. outdoor, is the latest retailer to dive into designer feel, an urban sensibility bishop hopes the athleisure collaborations. The company has inked and a versatility factor, Portland collection brand,” Beckman a licensing agreement with John Eshaya, bishop said. captures interest from said. creator of the Jet clothing brand and store Pendleton hired stores such as Saks Like the anticipated deal between Amar’e at Fred Segal and former vice president three young designers, Fifth avenue, neiman Stoudemire of the New York Knicks and of women’s wear at Ron Herman, for nathaniel crissman, Marcus, barneys co- Rachel Roy, in which DMA is involved, the collections under the John Eshaya for Hot rachel turk and John op, nordstrom and agency and Swank are interviewing fashion Topic label at its 650 Hot Topic stores and blasioli, to create the bloomingdale’s. true designers to partner with the actress on under the John Eshaya for Torrid label at line. they are all from collaborative Fashion designing the collection. its 156 plus-size specialty Torrid stores Portland, ore., where will represent Pendleton launching in May. Pendleton is based. in marketing the line CATHERINE’S CHINATOWN: Electrified by The collections mark Eshaya’s first crissman and turk to retailers. the collec- a recent six-day stay in China, Catherine licensing deal and will expose his casual are the founders of the tion will also be at trade Malandrino is eager to break into that luxury- California aesthetic to a much broader church & State fashion shows, and will stage a minded market. The designer made the audience than ever before. Speaking label. blasioli created preview show in January journey to meet with potential distributors. specifically of his pieces heading to Torrid, stage outfits for the the at new york’s ace Hotel. Checking into The China Club, a Beijing he said: “What is cool is that it is for a whole decemberists band be- the company has lev- hotel built from a 17th-century palace, and new market.…It is kind of giving the Jet look fore launching a men’s eraged its heritage in checking out the art scene in the 798 District for these girls that are plus-size and keeping wear line, a broken recent collaborations were bonuses, as was the architecture. “I it young and happening, so it is not like they Spoke, which was shut with nike, Vans, Hurley, never imagined the contrast between the are having to wear stuff that isn’t supercool.” to later launch an epony- opening ceremony, traditional building — the Forbidden City Although the details of the collections mous line. timberland and comme in the center of Beijing — and the most are still being worked out, Eshaya estimated However, t h e des Garçons to modern- interesting modern architecture and the most there would be seven to eight pieces each Portland collection is ize the Pendleton image impressive luxury world. for the initial launches at Hot Topic and not a complete depar- A sketch from and capitalize on a re- “For me, Beijing was a real discovery. I have Torrid, and prices for the pieces would ture from the Pendleton Pendleton, cent resurgence of inter- been to Hong Kong a few times, but they are not exceed $40 at Hot Topic and $60 at tradition. “We looked The Portland est in the brand. “there’s really different places,” she said. “You can’t Torrid. The collections will contain Eshaya to classic Pendleton Collection. a whole new generation really imagine what is going on there, especially staples such as sweatpants, T-shirts and fabrics as the founda- of consumers, 25 to 45, ichner coming from America, where women are very roomy sweaters. He said a key look from his e tion for the collection,” drawn to the authentic-

price conscious, focused on sales and finding collection entering Hot Topic is a printed teve crissman said. “the archives served as ity of Pendleton. there’s also a lot of s off-price merchandise. There, the customer loose jersey tank top and wrap jacket combo a great inspiration, allowing us to tap interest from Japan’s fashion under- is totally into luxury and designers. They that customers can wear with jeans, and into Pendleton’s heritage while bringing ground in american heritage brands,’’ understand the brands, style and fashion.” a key look from the Torrid collection is our point of view to the brand,” which said bishop. “We don’t want to be on Noting how Miuccia Prada and Hermès cropped sweatpants that can be paired with he described as “contemporary, with an the sidelines. We want to do something,

plan to show in Beijing, Malandrino also chunky heels. photo swank by independent design spirit and a bit of ir- given this unusual opportunity.”

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Question about your To place an “ONLINE ONLY” Subscription? classified ad, log into WWDCAREERS.com Call 1-800-289-0273 and place your ad any time 12 WWD, MonDay, DeceMber 27, 2010 WWD.COM PLOT POINT Long-known for interknit narratives, director Alejandro González Iñárritu narrows his focus with “Biutiful.”

The lobby of The Mercer hoTel is a hub of schmoozing activity just after 2 p.m. on an early fall Alejandro afternoon. in one corner, a group of europeans are González having a heated debate over drinks. Guys in slim- Iñárritu fitting suits are draped over every possible inch of space. chris rock is holed up at a corner table chowing down with a group of friends. Director alejandro González iñárritu cuts an anonymous swath through the scene as he crosses the room and settles down to discuss his latest film, “biutiful,” over a pot of mint tea. Dressed in a dark sweater and speaking in soft, but adamant tones, González iñárritu seems accustomed to functioning in such a frenzied environment. No surprise there, judging by the famously high energy, fast- paced cinematic style he has showcased in works such as “babel” and “21 Grams.” but with “biutiful,” his first spanish-speaking movie since 2000’s, “amores Perros,” and already the Mexican entry for the upcominga cademy awards, González iñárritu made a conscientious effort to move away from the very hallmarks that have earned him his reputation. “i want to get out and get rid of the dangerous zone that i was thinking i was getting trapped in: this branding kind of thing of the multilinear structure guy,” says the 42-year-old. “suddenly, that became a gimmick or predictable kind of thing. it seems that now, the most experimental or radical way to tell a story is in a traditional way.” certainly “biutiful,” which opens Wednesday in limited release, with its more straight-forward narrative and intense character focus, will surprise González iñárritu fans accustomed to juggling five plotlines at once. set in the multiethnic santa coloma and badalona neighborhoods near barcelona, the film follows uxbal (Javier bardem) — according “This is a film about life, it’s not about death. It’s not bleak. I think it’s a story about life being told from the ending point.” — AlejAndro GonzAlez InArrItu to the director, “a very street guy, primitive, but at the same time very sensitive spiritually,” — trying to make a living and support his two young children, often through legally questionable means involving the african and chinese immigrants that populate his area. he is also a man stricken with both metaphysical powers — he can communicate with the dead — and a terminal illness that casts a gray cloud of melancholy over his daily travails. “it was this kind of timeless question [of] where we go when we die that [drew] me in,” González iñárritu explains of the narrative. “but this film has this timeless question in a very specific time and a very specific, social, urgent problem that we are facing. The rules and the cruel and incredibly unfair circumstances that millions of immigrants are suffering around the world, and we are all living under the dictatorship of capitalism, and annaccone it’s just the dehumanization of the territories that is striking me.…it’s an i expression of a simple man’s life in a complicated world.” homas

a simple man and a very tragic one at that. The movie’s saturated t color palette only serves to heighten the sense of inevitable loss that uxbal and his family face. To watch a man dying slowly, however poignantly and beautifully, is not an easy sell to mass audiences. For “This is a film about life, it’s not about death,” González iñárritu argues. more, see “it’s not bleak. i think it’s a story about life being told from the ending WWD.com/ eyescoop. point. The films that i think are about death are the ones [where they] kill 20 people and you don’t care about any of them and you say, ‘What the

f--k?’ and you don’t give a damn about any of them. Those filmsi find bleak gonzalez inarritu photo by

and very dark because i cannot laugh because in my country, the bullets really cross the human flesh and kill people. so i don’t find any entertainment in that.” That said, González iñárritu recalls his childhood as a happy one, despite its challenges. he was born in Mexico city. his father was a banker, who lost his job when González iñárritu was young and struggled to support his family. “i learned from him to be stubborn, and at the same time, in a way, i’m born with a certain fear of failure,” he says. González iñárritu grew up in a neighborhood not unlike the one documented in “amores Perros,” playing with his friends in the streets every day until late into the evening. as a teenager, he spent two stints cleaning the floors of a cargo boat crossing the atlantic. after the second trip, he stayed in europe with $1,000 in his pocket and no planned destination. “i read a lot of existentialism, all the latin american material, smoked a lot of pot,” he recalls. “i think those three years were for me definitive for my understanding of the concept of the world.” he knew at age 20 that he wanted to be a director, but spent years doing everything from hosting a radio program to creating commercials and even studying theater before arriving at his current, autodidactic profession. and if his work since then has tended to land on the darker side of the emotional spectrum, González iñárritu is quick to credit his adolescence and upbringing for continuing to shape his vision. “i come from a tragic and visceral culture andi ’m a visceral, passionate person,” he explains. “i find myself fascinated by the incredible possibilities that we as human beings are capable to do under the worst and toughest circumstances.i ’m not interested to make people depressed or lock them in a black room at all.i think it’s just right and valuable to go to the very extreme, as if you are at the fair and you go on the toughest ride.b ut at the end, the catharsis, i think, will be much more durable and profound.” Javier Bardem in a scene from “Biutiful.” — Vanessa Lawrence