LIZ CUTS FORECAST/2 WAL-MART SEES APPAREL BOOST/2 WWDWomen’s Wear DailyWEDNESDAY • The Retailers’ Daily Newspaper • May 14, 2008 • $2.00 Sportswear Fiesta Wear The resort season just keeps getting bigger, and nothing illustrated that like the Christian Dior collection John Galliano showed on Monday. Inspired by Millicent Rogers, Gloria Guinness and Acapulco, the fl amboyant, citrus-colored styles included off-the-shoulder peasant tops, like this dramatic one, sashed over a full skirt and worn with a big hat and assertive jewelry à la Rogers. For more on the presentation, see pages 4 and 5.
Finding the Right Fit: Barneys’ Socol Quits, No Clear Successor By David Moin ne of the plum jobs in American Oretailing has just opened up — but it’s rife with challenges. Howard Socol, chairman, president and chief executive officer of Barneys New York, on Tuesday confirmed recent speculation and said he will retire from the specialty chain at the end of June. A search firm will be hired “in short order” to find a replacement, David Jackson, ceo of Barneys owner Istithmar, told WWD. However, with Socol’s decision to resign coming sooner than expected, finding a successor seems a long way off. See Barneys, Page 6 PHOTO BY JOHN AQUINO PHOTO BY 2 WWD, WEDNESDAY, MAY 14, 2008 WWD.COM Liz Sees Red in First Qtr. WWDWEDNESDAY Sportswear By Whitney Beckett iz Claiborne Inc. chief ex- Lecutive officer William L. FASHION McComb’s tale of two cities anal- Christian Dior’s resort show at Guastavino’s in Manhattan was a major ogy continues to haunt him. 4 offensive at a wretched moment for consumerism in the U.S. On Tuesday the company post- ed a fi rst-quarter loss of $31 mil- lion, or 33 cents a diluted share, GENERAL down from profi ts of $16.2 mil- Howard Socol has resigned as chairman, president and ceo of Barneys lion in the fi rst quarter of 2007. 1 New York after seven years at the helm of the prestigious retailer. The bottom line was hurt by $44 Wal-Mart Stores Inc. posted higher fi rst-quarter sales and profi ts and said million in restructuring costs. 2 its apparel business is set to kick into high gear with warm spring weather. The results exhibited the same story for the beleaguered The earthquake that struck southwest China caused moderate damage vendor: direct brand sales grew 3 in Chengdu’s retail areas, but is bound to test consumer confi dence. 28 percent to $610 million, while Strength in South America, Eastern Europe and China offset weakness in partnered brand sales slid 14 Juicy Couture’s retail business is doing well, and added stores like the Beverly 6 France as Carrefour posted a 10.2 percent fi rst-quarter sales gain. percent to $501 million. Hills fl agship in 2007. Facing what McComb called Retail sales at specialty stores were up 0.7 percent to $19.02 billion in “a very light second quarter,” the open to buy and managing their taking a substantive approach to 6 April, but fell 0.1 percent to $16.97 billion at department stores. vendor lowered its 2008 adjusted inventories carefully,” Dave integrating sourcing with design, MAINSTREAM: Buyers at Moda Manhattan and FAME said they were earnings per share guidance to McTague, executive vice presi- merchandising, and merchan- 8 waiting longer to place orders and then only buying what they loved. a range of $1.40 to $1.60 from a dent of partnered brands, said. dise planning and allocation.” previous range of $1.50 to $1.70. “The fall of the partnered brands Analyst Jennifer Black, of the WEST: Kate Spade is courting Los Angeles shoppers for the fi rst time “Today, on an apples-to-apples environment will continue to be fi rm that bears her name, thinks 12 with its own stores, part of an ambitious retail rollout this year. basis, you saw an uptick, and we tough, especially on our declin- the revisions are realistic. “Unless Classifi ed Advertisements...... 13-15 hit what analysts had been ex- ing brands. We are carefully we go into a depression, this could pecting,” McComb told WWD. watching our exposure to order be a turnaround story,” Black “But the second quarter is always cancellations and markdowns…. said. “The big question is if this is To e-mail reporters and editors at WWD, the address is fi rstname. a tough quarter, and this quarter While we won’t claim success in a 2009 story or a 2010 story.” [email protected], using the individual’s name. will be tougher than normal.” 2008, with careful execution, we Black said she was encouraged WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT Sales for the quarter in- are on course for signifi cantly by Juicy’s “extraordinary growth ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. creased about 5 percent to $1.12 improved results in 2009.” and potential” (even proposing VOLUME 195, NO. 103. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with billion from $1.07 billion. McTague added there are Juicy could open special stores one additional issue in January, October and December, two additional issues in March, April, May, June, August and Juicy Couture continued its plans to improve all three of for its new intimates line), Kate November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of growth streak with revenues in- the worst performing brands Spade’s prime segment given the Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, creasing 58 percent to $140 mil- for spring 2009. Isaac Mizrahi current economic situation, and Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/ lion. Lucky Brand Jeans sales will relaunch the fl agship Liz Lucky’s plan to add more fashion Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications rose 21 percent to $110 million, Claiborne brand, John Bartlett denim and tops. On the partnered Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: Kate Spade sales climbed 44 will do the same for Claiborne brands side, Black said, “I’m return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: percent to $28 million. Helped men’s, and Villager will be dis- dying to see the Isaac Mizrahi SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE by the strength of the euro, continued and replaced by Dana line. In the meantime I have no INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit Mexx revenues grew 20 percent Buchman, which Claiborne has expectations for the Liz brand.” www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new to $342 million, though McComb licensed exclusively to Kohl’s. But Brad Stephens, a retail subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production said, “Mexx is underperforming Claiborne also has signifi cant analyst for Morgan Keegan & correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other the market overall” and “our ex- sourcing changes on the horizon, Co. Inc., said he was wary about Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list ecution has been poor.” and McComb said an announce- the store rollout plan for Lucky, available to carefully screened companies that offer products and services that we believe would interest our readers. But this time around, the tale ment should be forthcoming in which entails 20 to 25 full-priced If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA of two cities story included a twist, the next month. The vendor has stores and 15 to 20 outlets this 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, as even the partnered brands already moved some of its sourc- year, after the brand’s stores OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED developed haves and have-nots. ing out of China into Vietnam, have experienced negative MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR The company pointed to Kensie, Indonesia and Cambodia, and is comps. He was also concerned CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DKNY Jeans, Liz & Co. and Monet considering Jordan and Egypt. that the strategy for Kate Spade DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY as growth leaders, and the Liz “I have not been happy with of opening 12 outlets to six full- A SELF-ADDRESSED STAMPED ENVELOPE. Claiborne brand, Claiborne men’s the degree to which sourc- priced stores could hurt the and Kohl’s Villager business as ing has been integrated in the brand image. Plus, Mexx also leading losses. brands and the degree to which continues to underperform. “Department stores are pro- we drive our competitive advan- Claiborne’s stock closed moting heavily, conserving their tage,” McComb said. “We will be Tuesday at $18.75, up 38 cents. In Brief
● BIG TIME: Louis Vuitton plans to christen its largest store yet — in Tokyo’s burgeoning Ginza district. A Vuitton spokes- Wal-Mart Earnings Rise, Bullish on Apparel woman in Paris confi rmed a report in Nihon Keizai Shimbun (Japan Economic Journal) saying Louis Vuitton Japan Group would open a boutique occupying the fi rst 10 fl oors of a new By Evan Clark help from the weather, this business unit and our seasonal business should kick into high gear,” said 12-story building to be completed in 2010 in Sukiyabashi, across al-Mart Stores Inc. posted higher first-quar- Castro-Wright. the street from Hermès. ter earnings and sales and said its apparel This month Wal-Mart is rolling out Ocean W ● business is ready to “kick into high gear” with Pacifi c apparel as an exclusive and is emphasiz- ANTICOUNTERFEITING EDUCATION: A new public service warmer spring weather. ing both branding and price. campaign aimed at educating New Yorkers about the human Earnings rose 6.9 percent for the quarter to The launch is being supported by a print, cost of purchasing counterfeit items was unveiled Tuesday $3.02 billion, or 76 cents a diluted share, from radio and online marketing blitz featuring Kristin at the Harper’s Bazaar annual Anticounterfeiting Summit. $2.83 billion, or 68 cents, a year ago. Revenues for Cavallari, of “Laguna Beach” fame, and rocker Deputy Mayor for Operations Edward Skyler said the goal is the three months ended April 30 rose 10.3 percent Pete Wentz, among others. An OP wide-neck jer- to make locals aware of the harm that counterfeiting causes, to $95.3 billion from $86.41 billion. sey T-shirt for juniors was priced at 97 cents on such as supporting child labor and taking away tax dol- Comparable-store sales at U.S. Wal-Mart stores the chain’s Web site Tuesday. lars from the city. The posters will be displayed throughout rose 2.7 percent, the best showing in two years, “Their apparel business is clearly on the mend Manhattan, and predominantly in high-traffic tourist locations thanks to increases in both traffi c and the average and it’s an improving trend,” said Craig Johnson, such as Times Square. purchase size. president of Customer Growth Partners, a New ● But Wal-Mart might be an anomaly in these Canaan, Conn.-based consultancy. WIPO ELECTS NEW CHIEF: Australian lawyer Francis tough economic times. Macy’s Inc., J.C. Penney So far, Wal-Mart’s pricing message seems to be lin- Gurry was elected Tuesday to head the World Intellectual Co. Inc., Kohl’s Corp. and Nordstrom Inc. are all ing up neatly with consumers’ economic wariness. Property Organization, which sets the rules that oversee expected to report this week that the weakened “Customers everywhere are concerned about copyrights, patents and trademarks. Gurry, currently WIPO consumer led them to lower earnings or losses the rising energy costs, food infl ation, home values deputy director-general, secured the director-general post last quarter. and a number of other factors tied to the global from a field of 15 candidates. He said a key challenge WIPO “Apparel is already recovering and it’s being economy,” said Wal-Mart president and chief exec- faces is integration of the intellectual property system. “We driven by the very successful introduction late utive offi cer H. Lee Scott Jr. “Wal-Mart customers have a territorial intellectual property system, but we have last year of our Express for Less initiative and value our price leadership more than ever, espe- global economic markets and global use of technologies,” he our emphasis on price points of $10 or less,” said cially as they try to stretch their money further.” said. “We have to face all those challenges, trying to adjust Eduardo Castro-Wright, president and chief ex- For the second quarter, Wal-Mart expects U.S. the systems while retaining sufficient flexibility at the na- ecutive offi cer of the Wal-Mart division. comp sales to be fl at to up 2 percent and earnings tional level to enable countries to meet their own national The company’s Express for Less program fo- of between 78 and 81 cents a share. Profi ts could priorities.” Gurry is slated to take the post Oct. 1 from Kamil cuses on licensed merchandise, such as T-shirts come in below analyst expectations, which Yahoo Idris of Sudan after the agency’s ruling assembly ratifies his with slogans. Finance placed at 81 cents. Last year, second- appointment in September. “We are making progress in apparel and with quarter earnings totaled 72 cents a share. WWD, WEDNESDAY, MAY 14, 2008 3 WWD.COM Macy’s Heads West For Latest Openings By Sharon Edelson acy’s Inc. is betting on the fast-growing Phoenix market and on MLas Vegas, which has been hard-hit by the economic slowdown. The retailer said Tuesday it will unveil a 120,000-square-foot unit next April at SanTan Village in Gilbert, Ariz. In fall 2010, a 120,000-square-foot unit will open at Estrella Falls in Goodyear, Ariz., and a 150,000-square-foot two-level store is to open at CityNorth in the Northeast Valley of Phoenix. By the end of 2010, Macy’s plans to operate 11 stores in the Phoenix-Scottsdale metropolitan area. The company said it is fol- lowing the population, which is moving from Scottsdale to the north and southwest. In addition, a 180,000-square-foot store at the Shops at Summerlin Centre in west Las Vegas is scheduled to open in fall 2009. The General Growth Properties project, an open-air regional center, is rising near the new western portion of the Las Vegas belt-
BUILDING PHOTO BY WANG JIAOWEN/AP PHOTO/COLORCHINAPHOTO; PEOPLE BY LI GANG/AP PHOTO/XINHUA PEOPLE BY JIAOWEN/AP PHOTO/COLORCHINAPHOTO; WANG BUILDING PHOTO BY Debris of collapsed buildings in China. Experts Weigh Economic Impact of China Quake By Kathleen E. McLaughlin structural damage, is hardly normal. A power outage forced mall Xiwu, in the heart of Chengdu, to shut- BEIJING — The massive earthquake that struck ter its doors Tuesday, according to a clerk at a Louis southwestern China on Monday left only moderate Vuitton boutique there. The same mall houses other damage in the retail areas of Chengdu — the larg- luxury shops like Dior and Versace. At Ito Yokado, a est city near the quake’s epicenter — cutting power Japanese shopping mall that houses Jack & Jones and A rendering of CityNorth’s West Plaza Park where Macy’s will be located. and leaving most stores closed. But economists said Vero Moda, businesses were open but customer traffi c the quake and its human toll will test consumer was extremely slow, a clerk told WWD before the tele- way. Macy’s two-level store will offer apparel and accessories for confidence both locally and nationwide. phone line went dead. The quake cracked the glass men, women and children, and merchandise for the home. Less than 24 hours after China’s largest quake in one of the windows of Emporio Armani’s store in “West Las Vegas is one of the country’s fastest-growing suburban mar- in decades, retail shops in the commercial heart nearby Chongqing but didn’t cause other damage or kets, and we look forward to expanding the merchandise and service in of Chengdu reported little physical damage to injuries, an Armani spokesman said. this market,” said Jeff Gennette, chairman and chief executive offi cer of buildings. Still, telephone communications were Balbina Wong, deputy chairman and chief ex- Macy’s West, the division responsible for the Arizona and Las Vegas mar- spotty and electricity remained out in several ecutive of fashion distribution company ImagineX kets. The new store will give Macy’s fi ve units in the Las Vegas area. parts of the city. Thousands of residents opted to Group, said that she’s been monitoring the news “This is a diffi cult period right now, but we expect the [Las Vegas] huddle in the rain to avoid entering buildings for and keeping tabs on her staff at the Maison Mode economy to bounce back at some point,” a Macy’s spokesman said. fear of aftershocks and falling debris, according to department store in Chengdu. “This is growth for the future.” local reports and China’s state-run media. In most “There has been some diffi culty in communi- In Arizona, SanTan Village, a 3 million-square-foot mixed-use shopping areas, only restaurants and supermar- cating. We can’t reach them, but they have been project, will have 1.2 million square feet of regional shopping space kets were open for business, observers said. getting through to us through our Beijing offi ce via with Dillard’s Inc. and 130 specialty shops. Estrella Falls has re- Economists predicted the overall economic telephone and e-mail. The whole thing is tragic. ceived a commitment from Dillard’s, but the lease has yet to be impact of the quake, which killed at least 12,000 [Maison Mode] is already closed, I don’t know for signed. Both projects are being developed by Westcor. people, will be limited to the immediate region how long,” she said, adding her offi ce has started “From the perspective of Estrella Falls, Macy’s validates our surrounding Sichuan province, a relatively re- a relief fund to help people in the area. long-term vision of developing a regional destination in a highly mote area accounting for just 2.5 percent of Chengdu is one of China’s booming “second- underserved market,” said Garrett Newland, vice president of de- China’s total manufacturing industry, according tier” cities, where new wealth and a rising middle velopment for Westcor. to a Merrill Lynch report distributed Tuesday. class have created thriving retail markets. Four The Related Cos. and Thomas J. Klutznick Co.’s CityNorth will Still, some warned the quake could have signifi - years ago Intel built a test and assembly plant in have 1.25 million square feet of retail space, including anchors cant psychological repercussions for a country the city, spurring much of the region’s economic de- Nordstrom and Bloomingdale’s. that is already in a somber mood thanks to the velopment. The company led a high-tech boom in “This [Macy’s] gives us the third leg of the triangle,” said Webber controversy surrounding the Beijing Olympics Chengdu, previously a primary development zone Hudson, executive vice president of Related Urban Development, a and a string of recent misfortunes, including freak for China’s aerospace and defense industries. unit of Related Cos. snowstorms, uprisings in Tibet and April’s high- While the Chengdu region and Sichuan prov- Each of the Phoenix-area Macy’s stores will have a design suited speed train wreck. Many Chinese, somewhat su- ince at large are home to some textile and ap- for open-air lifestyle centers with new “main street” entrance con- perstitiously and justifi ably, are hailing 2008 as an parel manufactures, the bulk of those activities fi gurations and an emphasis on natural lighting. unlucky year. are concentrated in the Guangdong province and The quake’s effect on consumer confi dence will the Pearl River Delta. Still, before the quake, it be long-lasting and reverberate throughout China, looked like an increasing number of businesses said Zhang Ming, an economist with the Chinese were eyeing the Sichuan region. There’s been re- Sun Shuts Kellwood Sourcing Operation Academy of Social Sciences in Beijing. cent speculation that rising labor and raw materi- “It is especially hard for industries like manu- als costs in southern China are pushing companies By Whitney Beckett facturing, the service industry and tourism,” said to Sichuan and other parts of the interior west. Zhang. “It’s diffi cult for people to work and function — With contributions from Constance un Capital Securities Group LLC is shuttering Hong Kong-based with the same confi dence as before. It’s going to Haisma-Kwok, Hong Kong Ssourcing operation Kellwood Trading Ltd. The vendor is in talks take a long time for people to with Li & Fung Ltd. to consolidate and outsource its manufacturing. get over the crisis period.” “We are in discussions with Li & Fung to provide sourcing ex- But Merrill Lynch in its pertise for our Kellwood Global Asia organization,” a Kellwood Co. research note predicted the spokeswoman said. “Kellwood Global Asia provides sourcing services quake would have a limited to certain Kellwood divisions. It is anticipated that most of Kellwood impact on the Chinese econ- Global Asia associates will join the Li & Fung organization.” omy as a whole. China’s re- Sources said Kellwood chief operating offi cer W. Lee Capps 3rd cord-paced infl ation, which is in Asia meeting with Kellwood Trading’s employees, and could was up 8.5 percent in April, potentially head the new sourcing operation. Sun, which acquired was more affected by the Kellwood for $762 million three months ago, saw potential in freak spring snowstorms Kellwood to be profi table if the sourcing could be made more ef- that ground logistics to a fi cient, even if sales held fl at. halt in the Pearl River Delta Li & Fung boasts one of the most effi cient sourcing models in the for several weeks. industry, and has gained a reputation as a low-cost operator that can “The earthquake should make a profi table business from moderate brands on which other have a much smaller impact companies lost money. on China’s economy than the Sun has been busy making changes since it took over Kellwood in snowstorm [that] happened February, including shutting underperforming brands like O Oscar, earlier this year,” wrote Lu Liz Claiborne brand suits and dresses, and its moderate dress busi- Ting, Merrill Lynch economist. ness. Additionally, although Sun has traditionally kept on the man- “The earthquake affected less agement of the companies it acquires, it has hired Russell Reynolds area in China, and the disaster Associates Inc. to fi nd a replacement for Kellwood chairman, chief itself has a short time span.” executive offi cer and president Robert C. Skinner Jr., and has let go Still, life in Chengdu, which Local people wait to be transported to safe areas as the injured lay in the open air several top executives. was largely spared in terms of and rain falls on Tuesday. 4 WWD, WEDNESDAY, MAY 14, 2008
Jennifer Lopez and Marc Anthony
Leighton Sherryl Meester Pascal, Mrs. New Jersey, American Resort Beauty. Más Grande
alk about an emerging market. Resort has exploded in the past few seasons with halter nip-waist frocks, and fi lmy djellabas, many of which featured a soupçon (well, Tall the gusto, gun-slinging and disarray of consumer goods out of China. It is more like a soup vat) of 3-D decorative motifs inspired by Tony Duquette’s interiors. fraught with its own set of controversies, some of which already seem to have obvious “They’re very bold, very contemporary,” said Galliano. Or, in other words, fun, real answers. One, is there anyone who covers resort — that would be the retailer-and- clothes for ladies of a fl ashy proclivity; to wit, Jennifer Lopez, perched at the faux press set — who doesn’t think that the six-week marathon, which opened on Monday pool runway with Marc Anthony by her side, who uttered an audible sigh of approval with several showroom appointments and an awesome, over-the-top, muscle-flexing at the sight of a green number, a caftan that incorporated a shapely gown beneath its extravaganza Christian Dior show should be reined in, perhaps to a two-week fl ou, the better to show a gal’s post-baby svelteness. period? Two, with that Dior production as exhibit A (exhibit B to follow in Miami on And considering the bucks Dior spent, including airfare for a healthy Thursday evening courtesy of Dior’s friendly adversary Chanel), is it not now crystal international press contingent, to stage such a splashy affair, you could bet Lopez and clear that resort is fashion’s new marketing jewel, an opportunity for a house to take her beloved weren’t sitting poolside alone. Indeed, there was enough star-wattage to its case on the road directly to the people, whether here in New York or in one of compete with the runway’s glittering backdrop. Christina Aguilera, Charlize Theron, those more exotic far-flung centers of seemingly endless new consumer yearning? Leighton Meester and Ziyi Zhang, some in vibrant, breezy little cocktail shakers At least there is such opportunity for the fashion haves. But this is a world of on what felt like the windiest day ever in New York, were among the off-runway haves and have-nots. While for some houses, large and small, the no-show decision beauties, who also happened to include an offi cial beauty queen: Sherryl Pascal, is based on the opinion that resort should be intimate and all about the clothes. aka Mrs. New Jersey, American Beauty. She accessorized her peach Dior capris with The minute you start venue-scouting and obsessing over hair and makeup, goes a proud pageant sash and a giant Swarovski crystal tiara. “It gives me a blinding the thinking, you shift focus from the clothes to the production. But designers are migraine,” she said. “But it’s nothing a Percocet can’t take care of.” Medicated or not, defecting from that camp like superdelegates from Hillary Clinton. On Tuesday, Pascal is willing to suffer, or make others suffer, for her fashion obsession. “I turned Oscar de la Renta will show resort formally for the third time. Others adding shows my son’s room into a shoe closet,” she admitted. “He sleeps somewhere else.” include Diane von Furstenberg, who is hitting the road for Florence. Would J.Lo consider doing the same to her newborns’ sleeping quarters? Who Yet many houses don’t even have to get that far, as most simply can’t afford to knows? She wasn’t talking to anyone — press, that is — although she did mouth stage a third proper show, especially with the bar set sky-high. The Dior event, held sweet nothings across the runway to Aguilera, who was in town shooting her at Guastavino’s, the newly renovated and reopened event space under the 59th fragrance campaign, and marveled at Galliano’s “genius.” Not the least of which Street Bridge, was a major offensive at a wretched moment for consumerism in the includes infusing Dior with enough class and sass to assure cross-generational U.S. And the citrus-colored clothes certainly channeled sunnier times. Galliano appeal. As Anne Slater put it, “He’s a little exotic for me sometimes, but he’s was inspired, he said, by “great American couture buyers Millicent Rogers and the divine.” And in the eyes of Lauren Hutton, who had never been to a Galliano show fabulous Nan Kempner,” as well as Gloria Guinness and days spent “poolside in (and evidently no longer suffers for fashion — she took her heels off immediately Acapulco.” And what would such icons wear on a modern-day, South-of-the-Border after the show, before she’d even gone down the stairs), Galliano is “a wizard; he getaway? Off-the-shoulder peasant blouses, exaggerated pantaloons, backless and does bizarre wizardly things.” WWD, WEDNESDAY, MAY 14, 2008 5 WWD.COM
Jordan Bratman and Christina Aguilera PHOTOS BY JOHN AQUINO AND SCOTT RUDD PHOTOS BY Charlize Anne Theron Slater
Ziyi Zhang 6 WWD, WEDNESDAY, MAY 14, 2008 WWD.COM Challenges Await Next Barneys Chief Carrefour Revenue Continued from page one Considering Socol’s departure is only six weeks away, The departure comes at a pivotal time for Barneys. Istithmar is under immense pressure to identify a suc- Rises 10.2 Percent The retailer is feeling the impact of the weakened cessor quickly. economy, and has experienced a few disappointing “It will be very tough to fi ll [Socol’s] shoes,” Jackson By Miles Socha fl agship openings around the country since launching said, though he added he believes the fashion industry a renewed expansion strategy two years ago in Boston. is very talented. PARIS — Robust sales in South America, Eastern Europe Despite these issues and Socol’s departure, offi cials Jackson said he isn’t wedded to having a luxury retail and China offset slower growth in France as Carrefour on said the company hasn’t lost sight of the long-term and executive run Barneys. “We are looking for someone re- Tuesday reported a 10.2 percent jump in first-quarter sales. is sticking with its agenda for growth. This involves ally who is a leader. To the extent we can fi nd that per- The world’s second-largest retailer after Wal-Mart said more fl agship openings in the U.S., with Chicago and son, it could be someone from a slightly off-beat path.” sales, including value-added tax, tallied 23.38 billion euros, Scottsdale, Ariz., units already slated and others ex- He said he preferred a retailer, but it could be someone or $35.01 billion at average exchange rates for the period. pected to be revealed this year; entering the interna- from wholesaling, considering many wholesalers oper- Excluding acquisitions, group sales increased 6.8 percent. tional arena, with the Middle East likely to be the fi rst ate retail stores. Socol added his successor should un- It was the second consecutive quarter of gross double- stop; further rollout of the Co-op chain, which special- derstand the Barneys DNA and its delicate presentation digit growth for the hypermarket operator, which has izes in contemporary merchandise, and building up the of what’s “cool” and what generates “commerce.” been hamstrung by weakness in its home market. relatively new Web business. “This is a very special job,” Socol continued. “It’s In France, which accounts for roughly half of “Through the process of the acquisition, Howard all about creativity, energy, fashion. It’s not about price. Carrefour’s business, sales grew 2.6 percent in the quar- always indicated he wanted to stay a shorter period It’s not about promotion. It’s about the things that get a ter, with a “solid” performance in food dented by a drop rather than longer,” said Jackson. “We feel quite lucky lot of retailers’ juices going.” Barneys is not so big so in other categories “as customers defer spending on dis- he stayed as long as he did and are very you can still be a merchant, Socol noted. cretionary purchases,” Carrefour said. sad to see him go. We would have loved “On this job, you can be a merchant, and The retail giant highlighted a general weakness in to have kept him.” a businessman. You can touch and feel non-food categories, which account for 27 percent of Socol said he stayed longer at Barneys the merchandise. You can touch and feel sales. “Current market conditions remain challenging than he anticipated when he joined the the people,” he said. and are tougher than we would have anticipated at the retailer in the year 2000, having initially He responded to reports that Barneys end of last year,” Carrefour said. signed on for three years, but staying over is feeling the pinch of the weak econo- However, the company is gunning for sales growth seven, and through three different own- my by saying, “I feel good about how of 6 to 8 percent, excluding acquisitions, with emerging erships. Istithmar bought Barneys from Barneys has acted in the tough economy. markets compensating for trouble spots like Italy and Jones Apparel Group Inc. last year for This is going to be a tough year for ev- Belgium. At constant exchange rates, sales leaped 51.2 $942 million. Jones had acquired it from eryone. The things we have done are percent in Poland, 49.4 percent in Romania and 48.4 per- Whippoorwill Associates and Bay Harbor smart. We are controlling our inventory. cent in Argentina. China, where Carrefour has been the Management in 2004 for $397.5 million. I’m proud of our organization for that. target of anti-French sentiments, recorded its best perfor- While there has been widespread We have very good expense control. We mance since 2001 with like-for-like growth of 14 percent. speculation his resignation was triggered have been creative in our merchandis- Separately this week, Carrefour named Bernard ing. We haven’t veered away from who Arnault, chairman and chief executive offi cer of LVMH Barneys is….Our domestic expansion continues. Next Moët Hennessy Louis Vuitton, to its supervisory board, From our standpoint, the year we open in Chicago [a replacement store] and tightening the luxury titan’s grip on the mass market “ in Scottsdale [a new market]. There will be other an- giant. Arnault fi lls the slot of Robert Halley, who resigned nouncements domestically.” as the board’s chairman and stepped down as a member. strategy on growing Barneys Socol also said despite domestic issues, overseas Carrefour said Halley, whose family once controlled expansion continues to be explored. “I visited Dubai, the majority of the retailer’s shares, would become hon- hasn’t changed just because of the before Istithmar was ever involved. We visited a num- orary chairman of the company. ber of different locations [abroad.]” Amaury de Sèze succeeds Halley as chairman of the fi nancial condition of the U.S. “As we look at all of our business, it’s important supervisory board. Previously, he was vice chairman. — David Jackson, Istithmar” not to get caught up in [economic] cycles,” added The changes came a month after Blue Capital, the Jackson. “From our standpoint, the strategy on grow- investment fund owned by Groupe Arnault and Colony by disagreements with Istithmar over strategy, Socol ing Barneys hasn’t changed just because of the fi nan- Capital, raised its stake in Carrefour to 10.7 percent, mak- explained his decision by saying, “This is a full-time, cial condition of the U.S.” ing the fund the retail giant’s largest single shareholder. seven-day-a-week job. There are a lot of things I love Asked how many fl agships Barneys could open in the At Carrefour’s annual shareholders’ meeting here last to do. I plan to enjoy life, travel a lot, and expand my U.S., Jackson said, “The Barneys experience is unique. month, ceo Jose Luis Duran downplayed the impact of the mental and physical capacities. There is a lot on my I don’t think there is ever going to be 100 stores. It will shareholding shift. “We’ve lived with Blue Capital [on the “‘I want’ list.” Taking another job in retailing, said the be in the low double digits.” Currently, there are seven board] for the last year,” said Duran. “I don’t expect any 62-year-old Socol, is not on the list. “I have no inclina- fl agships, two smaller stores, 15 Co-ops and 13 outlets. strategy changes.” tion to do that.” Regarding the potential for stores abroad, Jackson Barneys, he said, now needs a new ceo who can said Barneys fl agships could open in “all the places you steer the business for a long time, in light of all the have to see, when you are coming of age and have the growth plans. He added the replacement could be a re- notion of going on a grand tour and seeing all the major Specialty Store Sales Up, tail veteran. cities” and “think of those cities where retail is an im- Asked if he had differences with Socol, said to re- portant part of the DNA.” He did not specify any cit- volve around the pace of expansion and the ceo being ies, though it is believed that London, Paris and Macau, Department Stores Lag able to steer the ship without second-guessing from its along with Dubai, are among those being scouted. By Liza Casabona new owner, Jackson replied, “I’m always reluctant to Back on the home front, Socol only hinted at which respond to rumors. Unequivocally, from our perspec- locations are not performing and which are. “I defi - WASHINGTON — Retail sales at specialty stores in- tive, we have enjoyed a very positive relationship with nitely think New York is a good place to be. Beverly creased 0.7 percent to $19.02 billion in April, but fell 0.1 Howard. Better than I could have hoped for at any Hills is a good place to be. Chicago is a good place to percent to $16.97 billion at department stores as that stage. Certainly, I think any difference of opinions were be. Seattle has done very nicely. There are a lot of good channel continues to struggle. not anything other than positive. I don’t perceive there places to be. The Web continues to be a good place.” The underlying economic challenges faced by merchants to be any of the warring factions portrayed in the press. Barneys also operates fl agship stores in Dallas, San were evident in a seasonally adjusted 0.2 percent drop in We think the world of Howard. We wished he would Francisco, Las Vegas and Boston, and a unit in Chestnut April sales for all retail and food service providers, dragged continue. This was 100 percent Howard’s decision.” Hill, Mass. “There is no question I would like to have down by soft automotive sales, after increasing 0.2 percent Jackson said Socol disclosed his decision to resign last year’s economy,” Socol continued. “The idea is to in March, the Commerce Department reported Tuesday. “very, very recently,” which led to “whirlwind discus- run a very professional ship. Keep the brand image at Compared with a year ago, specialty stores posted a 3 sions” to try to retain him. its highest level and wait for the economy to turn, and percent sales increase and department stores reported a As far as choosing a successor, Jackson said he didn’t then you will be poised for great growth.” 2.3 percent decline. Many retailers faced easy year-over- want to speculate on whether Barneys will choose “As the owner, we believe Barneys is in all the year sales comparisons in April, possibly the best they will an insider or someone from outside the organization. right locations,” Jackson said. “We are not looking at see in 2008, said Ken Perkins, president of Retail Metrics. It’s probable the retailer will search for an outsider, [Barneys] in terms of any individual stores in light of Warmer weather also released some pent up demand for though, considering Socol did not groom a successor. the current economic situation.” spring apparel and seasonal merchandise, he said. When individual retailers reported April same-store sales last week, most posted gains, but economists cau- tioned that the numbers were tempered by fl at or nega- Costs Lead American Apparel to 34 Percent Earnings Drop tive same-store sales in March. “The April retail sales fi gures overall were not too bad merican Apparel Inc. on Tuesday reported a 34 per- sets include machinery and equipment related to fab- in view of widespread reports of extremely grumpy con- Acent decline in fi rst-quarter earnings, hurt by start- ric dyeing. American Apparel also got the lease for two sumer sentiment,” said Brian Bethune, chief U.S. fi nancial up costs for a new dyeing and fi nishing facility. buildings totaling 135,000 square feet. The facility, lo- economist for Global Insight. “Overall, consumer spending For the three months ended March 31, earnings fell cated in Garden Grove, Calif., has done contract work continues to chug forward, albeit at very slow rates.” to $1.1 million, or 2 cents a diluted share, from $1.7 mil- for American Apparel for about 10 years. Given the diffi cult economic environment, “this report lion, or 3 cents, in the year-ago period. Sales soared “While American Apparel already operated one of is probably not as strong as some people are taking it to 51.9 percent to $111.6 million from $73.5 million, with the largest cut-and-sew operations of its kind, this ac- be,” said Scott Hoyt, senior director of consumer econom- same-store sales jumping 36 percent. quisition will further reduce our reliance on contract ics at Moody’s Economy.com. Management reaffi rmed full-year guidance in the dye facilities, allowing us to expand our product of- The federal tax rebate checks that are rolling out range of 32 cents to 36 cents a diluted share, before a fering, streamline our supply chain, lower costs and could prove to be a bright spot, economists noted, but it onetime noncash stock compensation expense in connec- ensure better quality control,” said Marty Bailey, chief is uncertain how much and where those improvements tion with a previously announced employee stock grant. manufacturing offi cer. will occur. Hoyt said the question is whether the rebates In a separate development, the Los Angeles-based About 140 U.S. Dyeing & Finishing workers will be- will be spent on food and energy to offset higher prices, company said it purchased assets from U.S. Dyeing & come employees of American Apparel. or whether consumers will spend them as intended on Finishing Inc. for about $3.8 million in cash. The as- — Jeanine Poggi discretionary purchases, such as apparel. WWD, WEDNESDAY, MAY 14, 2008 7 WWD.COM Exec Tech Saks’ Incandela on E-tail By Cate T. Corcoran will win a $3,000 shopping spree. We held so it hasn’t been an issue. All our market- events in fi ve stores last month in the ing is ROI [return on investment] based. aks Direct President Denise Incandela Theory areas. People could make a video All this stuff is not only really cool but it Scame from McKinsey & Co., where she in the booths. About half of the entries so also drives sales. We’re in a tough econ- consulted on Internet retailing, to launch far were submitted through the stores. omy now, so we’re asking what can we do Saks Fifth Avenue’s Web store in 1999. About half were submitted through our that’s innovative and new. We don’t think The operation numbers about 400 peo- outside partner Brickfi sh. [Entries can of a recession as a time to sit back, we ple, including fulfillment and customer be viewed at the Brickfi sh site.] We also think it’s a time to get more aggressive. service. This year it will be Saks’ second- used Facebook. You can send a link [an largest store after the Fifth Avenue flag- application that shows the user’s favorite WWD: Are you expecting online sales Saks’ Denise Incandela. ship. Here, Incandela talks about video, Theory outfi t] in Facebook. It’s viral, you growth to slow, given the economy? social media, the economy, and Saks’ in- can pass on the link. We also had Theory D.I.: It’s hard to say. We’ve had such a novative multichannel campaign with video in New York store windows. strong month. Across the board, the growth the URL, coming from search engines, or Theory, which concluded Monday. rate has declined a bit but it’s not as bad from blogs? WWD: What are the results so far? as the rest of the economy. We still have a D.I.: One thing we’re seeing across the WWD: How is Saks using video online? D.I.: We absolutely saw a lift on the in- healthy growth rate. Last year we were up industry is that organic [traffi c] is going Denise Incandela: The editorial portion of store piece. For us, it was also a question close to 40 percent. This year we’re not ex- down. Our conversion rate is going up. The our site in the last year has really changed of how do we reach a customer segment pecting the growth rate to be as signifi cant. people who are coming are coming to buy. the way people shop. Especially video. we’re not reaching today. There is social Ninety-nine percent of our customers are media out there that we think is cannibal- WWD: Is your online merchandise differ- WWD: How do you deal with bloggers? now on high bandwidth connections. So it’s izing our shoppers’ time. We need to be in- ent from what’s in the stores? D.I.: We have someone who shares best- more like TV and it’s much closer to the in- volved. Our online customer tends to be 10 D.I.: About 60 percent of our assortment sellers and other news with them, who store experience. We’ve incorporated video years younger than in the store. Shopping overlaps with the stores. About 40 per- manages events and affi liates. It’s been a into our trend coverage. One thing we’re used to be a form of entertainment and cent is our own, but the percentage is full-time position for about eight months. doing that we’re really excited about is now with social media there’s competi- growing. Another thing we’re getting into designer interviews. For example, we had tion for that form of entertainment. We is [categories] with [limited] fl oor space, WWD: What should we expect to see in an interview with Christian Louboutin up don’t see a lot of retailers partnering with such as children’s, electronics, gourmet the coming year? in December. It generated over half a mil- social media companies or sites. food and home. We are starting to outper- D.I.: I think in general, not necessarily at lion dollars in sales. Think of it as a store form our New York store in children’s. Saks, there will be video in the product de- personal appearance, but in the store only WWD: Is Saks planning to do more Web tail. We’re still adding more [product] views so many people get to go. This concept is 2.0 type things? WWD: What is the most expensive item as we speak. We’re going to bring interna- taking technology and using it to expand D.I.: Yes, we are, but I can’t talk about it yet. you sell online? tional shipping to the Web site next year. beyond what we could do in the store. D.I.: It would probably be an exotic hand- We do it now through our 800 number. WWD: Are you seeing any budget cut- bag. We haven’t seen any price resistance. WWD: Video is a big piece of your cam- backs? Is it possible you will have to It’s all about convenience. When people WWD: Would Saks do something like de- paign with Theory. shelve some innovations because of bud- want something, they want it. velop its own online community? D.I.: We’re doing a promotion with get constraints? D.I.: I can’t talk about our go-forward Theory that is a multichannel event, D.I.: Everything we do is self-funded. We WWD: Are you seeing any change in initiatives, but we’ve discussed it. It’s not which is why it’s so powerful. You tell us have a four-month target with each invest- where shoppers are coming from? For our skill set but the space is evolving so your point of view on fashion. The winner ment. And we’re more than achieving that, example, are Saks shoppers typing in quickly we can’t rule anything out. Bits & Bytes Next Step for Social Shopping roduct bookmarking service — C.T.C. PThisNext is thinking outside the Web site with ventures that include a Facebook application and a deal with Ford Models. The product bookmarking site made its debut in August. Like similar sites Stylehive, Kaboodle, Wists and StyleFeeder, it allows visitors to bookmark fa- vorite products online and see which ones others have book- marked. Most also include per- ThisNext’s home page. sonal profi les, blogs, comments, ratings, search and other features. In addition, ThisNext’s home BEST DRESSED page displays what items are hot in various cities. The 16 million tween members of the Last month, ThisNext signed a deal with Ford Models Inc. that Stardoll virtual world need never know a bad will let the agency’s stylists and models recommend products and fashion day. If virtual outfi ts from DKNY, allow the two companies to split any revenue they generate. “It’s a mary-kateandashley and other brands aren’t way for the models to build their recognition as style leaders,” said enough, now they can design their own using PRECIOUS PHONE ThisNext chief executive offi cer and co-founder Gordon Gould. the site’s StarDesign fashion design software. To celebrate the recent opening of its “There are surfer models, yoga, fashionista and outdoorsy models.” New York store in the Plaza Hotel, Vertu Meanwhile, ThisNext has added an application to Facebook is offering a patterned leather edition of called “I Want.” Facebook users can add it to their pages and send its Constellation phone. The handmade, out a plea about an item they’re looking for — say, a white fl at- precision-engineered ceramic Monogram screen TV or the perfect pair of patent sandals — and receive pho- comes in fi ve colors and contains tos of suggestions from ThisNext users on their Facebook page. sapphire crystals and precious metals. “We see ourselves as less of a site and more of a service,” said The $5,500 price includes a 24-hour Gould. “There’s no reason you need to come to ThisNext per se. concierge service. Where you do your product recommendations or shopping to us doesn’t really matter. We can serve advertisements or cost-per- click wherever you go.” ThisNext will take in “a few million” in revenue this year, some of it from visitors who click through to look at products on a retailer’s site. Visitors don’t have to buy for ThisNext to get paid. The site also gets a cut of purchases and carries advertising. Social bookmarking is potentially a better way to reach cus- NOT STANDING STILL 5% tomers than display ads, Gould contends. Banner ads typically Face Hunter photographer Yvan Rodic have click-through rates of less than 1 or 2 percent, whereas about will take his streetwear blog into the of U.S. shoppers said they are likely one-third of visitors to ThisNext click through to a retail site, he video realm with interviews of his to opt to receive messages about said. About 16 million people have visited ThisNext since August, previously still subjects on MySpace promotions via cell phone when they with an average of a couple million visitors a month, according to TV. It will debut around the end of the approach a store. — TNS Retail Forward Gould. Revenue per page on ThisNext averages $14, he said. month with a launch party in Rodic’s The company has about 24 employees and recently closed favorite fashion capital, Stockholm. a second round of funding for a total of $10 million in venture capital backing. — C.T.C. 8 WWD, WEDNESDAY, MAY 14, 2008 WWD.COM In the Mainstream Buyers Wait Longer, Scour Harder for Special Items
By Whitney Beckett A yellow Italian denim very cautious,” Khanna said. The Plainview, jacket from Lola of N.Y.-based vendor did well with fl oral and but- NEW YORK — Specialty stores’ open-to-buys might be San Francisco at terfl y prints. holding steady, but at this month’s Moda Manhattan and Atelier Designers. “This is not a time to buy,” said Juno Chang, FAME trade shows, buyers reported they are looking president and ceo of junior line Juno. “Traffi c more before making decisions, waiting longer to place is slow.” orders, and then only buying what they love — mimick- Both shows moved to the upper level of ing the behavior of their own shoppers. Javits, which allowed them to grow 4.5 If not ordering for immediate delivery, most buyers percent in square footage as well as in were scouting for fall, rather than holiday, at Moda and the number of vendors, to about 1,000 FAME on May 4 to 6 at the Jacob K. Javits Convention between Moda and FAME, according Center. Top-selling items were must-have novelty pieces to Britton Jones, president and ceo of that stood out in terms of color, shape or embellishment, Business Journals Inc., which owns and that didn’t break the bank. the shows. Buyer attendance was Carolyn Billet, owner of Maple Street Clothing in fl at compared with last May, but New Orleans, shopped Moda and FAME for her two cus- Jones said he thought smaller stores tomer bases: “women and college students.” She was that have been hit particularly hard looking for early fall with a fl at open-to-buy, and ordered by the recession weeded themselves novelty knits, boyfriend sweaters and jackets in purples, out, and the retailers that remained “had reds and charcoals at Moda. money to spend.” “I’m being extremely selective because of the econo- “It’s pretty easy to run a great show in my, so an item must be something I absolutely love, noth- a hot market; it’s a little more diffi cult to ing on the cusp, for me to order it this season,” Billet run a great show in a more diffi cult mar- said. “Fringe items will be trimmed, and I am sticking ket, and that’s what we just pulled off,” with manufacturers who have been tested.” said Jones. “Stores went through a rough Thomas George, owner of E Street Denim in period, but saw a rebound in April, and Highland Park, Ill., said he “worked a lot harder” at this they realize that the best way to im- round of shows, making sure that he was fi nding the best prove sales is bring in exciting trends, merchandise for his stores with his fl at open-to-buy. But which they saw at the shows.” he said he was disappointed by the lack of risk vendors Meanwhile, at the Atelier Designers were taking. trade show, which ended its three-day “I don’t think we’ve done a great job in our industry run at the Doubletree Guest Suites to make things exciting, and consumers are probably in Times Square on May 6, much of the spending the same amount of money, but they are shift- A Luv2Luv talk centered around the uncertain economy ing out of our industry to travel, technology,” George were pushing. For New York-based Melly dress at and the ongoing rise in gas prices and the im- said. “Retailers also have to take some risk, and unfor- M, which wholesales from $68 to $180, 90 FAME. pact on consumer spending. tunately, I didn’t fi nd enough out there that’s moving it percent of orders at Moda were for imme- Trends at the show ranged from a variety forward — anything that was ‘oh my god.’” diate delivery, according to sales represen- of artisanal touches, such as mixing bohemian Vendors reported strong traffi c on Sunday, then a ta- tative Laura Sullivan. prints to item-driven collections, with a particu- pering off of visitors when Intermezzo opened. For ex- Buyers were not only holding back on lar focus on outerwear and blouses. ample, sales were up 40 percent over last year for Don spending, but also being careful with The Chicago-based Jermikko label was a fi rst- Hurowitz, the New England representative for better the price of items. At Kay Celine, a time exhibitor at the show with a focus on state- lines Maralyce Ferree Design, CTC and Ameeta, which New York-based line that showed at ment-making novelty coats all showed at Moda. He said buyers scoured his lines for Moda and wholesales for $45 to $94, and eveningwear. Designer “novelty, texture and color.” “more tops are selling than dresses Jermikko Johnson said “Buyers seem concerned, but they are here and they because they’re less expensive,” said she was pleased with are buying,” Hurowitz said. “People say they are cutting representative Janette Richards. the traffic. “A couple of back, but they don’t actually seem to be.” Top sellers all were novelty, featur- people said they would New York-based knit resource Bask did well at Moda ing embellishments, metallics and have bought more, but the with standout silhouettes, from trapeze vests to ponchos prints. economy isn’t as strong,” to swing coats. “We’re selling more short sleeves and “We’re selling all novelty and Johnson said. “The point sleeveless than ever before, because of the emphasis on anything at a price,” echoed Seena is, they bought.” layering for fall,” said Bask president Jeff Scher. Addeo, sales manager of New York- Among Jermikko’s best- Most buyers were ordering for fall or even imme- based David Brooks, which whole- sellers was a boiled wool diate, rather than the holiday offerings many vendors sales from $24 to $84. blue coat for $418 whole- Buyers parted with sale, and a brown plush their money for nov- wool coat for $518. Overall, elty and color. For New Jermikko’s wholesale price York-based knit vendor points range from $300 to WR 9000, which whole- $798. sales from $42 to $98, its Brooklyn-based Ohm biggest sellers at Moda Studio designers Julie were bright reds, pur- and Tom Diller were also ples and fuchsias, par- new to the show, bringing Do your designers ticularly novelty pieces an artsy touch with their that include fur. But handmade collection of al- still, according to sales most hippie luxe garments. have the time representative Rosanna Bestsellers at the show in- Balsamo, sales were A purple sweater with cluded a tulle-over-wool they need slow and rarely extend- fur from WR 9000 at quilted jacket for $158 ed past August. Moda Manhattan. wholesale. At FAME, Los “We have been steadily Angeles-based young busy,” said Julie Diller. “At to design? contemporary line Bizz, which wholesales least for us, people aren’t really talking so much about from $25 to $60, was “swamped” with traffi c the economy. They said January and February were and orders, according to senior sales rep- scary, but it has picked up since then.” resentative Amy Kim. “The key is a simple Tom Diller added, “Items are more important than body with detailing that sets the item apart,” outfi ts.” said Kim. Lola Herrera, designer of Lola of San Francisco, of- Reduce your costs, increase your productivity FAME is now three-quarters young con- fered a younger, quirkier, downtown aesthetic, with cool and give your designers the gift of time to do temporary and junior exhibitors, of the yellow denim coats, jackets with front-snap detailing what you hired them to do. nearly 400 vendors at the show, with the in- and materials such as cotton twill for coats. Bestsellers tention of forming a more focused destina- included a raspberry herringbone coat at $139 whole- Isotope Design Group can help. We provide sketching services, tion for buyers. sale and an Italian denim coat for $175, as well as hemp silhouette designing, CAD artworks and CAD colors, as well Pura Vida, a junior line based in Wooster, denim skirts with hand-pieced silk fragments, for $150 as pattern making, grading solutions, embroidery design and Ohio, has been doing FAME since the show wholesale. Susan Summa, who produces Atelier, said digitizing. We do it all online with 24/7 availability and work- started, according to president Raj Arora. she went into this edition of the show with uncertainty. in-progress visibility. He said most people were writing orders, “We had no idea what to expect after the February particularly for pattern dresses, “mostly for show, with the split market,” Summa said. “The econom- Visit our website or call Isotope Design Group today to learn more. fall but some immediates.” ic news has not been good, but many buyers reported Ninety percent of junior line Luv2Luv’s that business has picked up in April.” www.isotopedesigngroup.com orders were for immediate shipment, ac- As for trends, she noted a move toward items. “So [email protected] cording to president Manish Khanna. many of the buyers come in and ask me about great shirt 212-868-1049 “Customers are very skeptical about how lines,” Summa said. summer will play out, and they are being — With contributions from Marc Karimzadeh WWD, WEDNESDAY, MAY 14, 2008 9 WWD.COM Hartnett to Front New Armani Scent Ugg Taps Nichols for Outerwear Line iorgio Armani is out to prove dia- for Men scent, details of his exact role By Sharon Edelson utilitarian chic pieces, including a re- Gmonds aren’t just a girl’s best friend. have yet to be fi nalized. The designer, versible cropped shearling jacket, $995; The fi rm’s beauty division on Tuesday however, alluded to an ad campaign gg Australia has called on Rozae reversible shearling vest with horn signed actor Josh Hartnett as the face of featuring Hartnett, stating the actor’s UNichols, a Los Angeles-based de- toggle closure, $1,300, and a shearling- a new scent due out this summer called “magnetism” will “guarantee a memo- signer whose line is known for its propri- lined glazed suede bomber jacket with Emporio Armani Diamonds for Men, a mas- rable print and TV campaign for this etary fabrics and handwrought elements, antique zippers, $895. culine counterpart to last year’s Emporio new launch.” to design an outerwear collection. “The approach was to concentrate Armani Diamonds women’s fragrance, Knowles, by comparison, appeared in The 14-piece collection ranges from on the strength of their shearling and which was fronted by Beyoncé Knowles. print and TV advertising for the women’s $595 for a suede hooded pullover to bring to that a sense of forwardness in- version of Diamonds, which was launched $2,300 for a long shearling coat. sofar as the way we looked at a modern in August of last year. Nichols, whose eponymous brand for cut and silhouette,” Nichols said. “But Hartnett’s upcoming fi lms include “I fall ’08 featured shearling vests with asym- BEAUTY BEAT Come With the Rain,” which is set to be metrical collars, fringed leather vests and released this year. leather and fabric, experiments with “The Emporio — Matthew W. Evans shapes and avant-garde styles. For holi- Armani genera- day ’07, she designed a pleated balloon tion is inspired skirt that looks like an infl ated accordion by film and YSL Beauté Reaches Trademark Settlement and jackets with uneven hems. Although music,” the de- SL Beauté Inc. has reached a settle- Ugg is a traditional brand — the design of signer stated. “I Yment with Costco Wholesale Corp. and the boots and shoes doesn’t change much felt that for the Quality King Distributors concerning alle- from year to year — Nichols was eager to men’s Diamonds gations of trademark infringement arising undertake the collaboration. fragrance it from the sale of fragrance products bear- “I was very attracted to the project,” would therefore ing the Yves Saint Laurent Opium name, she said. “I like leathers and shearlings. be appropriate the fi rms stated Tuesday. They’re very interesting materials to An ad from an Ugg campaign highlighting to involve one Litigation had been pending in the U.S. work with. I thought, ‘Let’s apply some outerwear designed by Rozae Nichols. of today’s most District Court for the Southern District of of the wonderful techniques we’ve de- inspiring young New York. veloped here.’” Nichols said Ugg was it’s also classic because I didn’t want actors.” “Yves Saint Laurent is pleased that “pretty wide open to [her suggestions] the garments to upstage the classicism Diamonds we were able to amicably resolve this because they’re basically a footwear of the footwear. It was very challenging for Men, which litigation with Costco and Quality King,” company” and didn’t come to the project to bring a forward-fashion freshness to Josh Hartnett and Giorgio is Emporio stated Marc Rey, president of YSL with preconceived ideas. it. What Ugg represents to footwear and Armani at the Armani Privé Armani’s sixth Beauté Inc. “We commend the coopera- “I’ve always admired the Ugg brand what we wanted to bring to the clothing fashion show in Los Angeles men’s fragrance, tion of Costco and Quality King in these as having a very iconic style,” Nichols is a sense of humble luxury. It’s so genu- in February 2007. is due to be un- proceedings, and this settlement refl ects said. “I really like the philosophy of the ine, there’s nothing ostentatious.” veiled in June, their absolute commitment to the sale of company. It’s very authentic. It came Nichols believes the collaboration during the spring 2009 men’s fashion authentic goods.” from a very nonfashion point of view. Its has staying power. “We’re looking for- shows in Milan. It is slated to be launched Quality King and its Quality King origins were utilitarian. I like the great ward to a long [relationship],” she said. worldwide in August. Fragrance business stated, “We are design that comes out of that necessity.” In addition, Nichols said she would While Hartnett, who is known for pleased to have been able to work co- Nichols was careful to strike a bal- like to design handbags for Ugg. “Our his work in fi lms such as “The Black operatively with YSL and Costco to ance between the fashion quotient and brand is also interested in expanding Dahlia,” “Black Hawk Down” and “Pearl achieve a mutually benefi cial resolution the brand’s traditional attributes, such the collection into accessories in spring Harbor,” will represent the Diamonds of this matter.” as its signature stitching. She created or fall of 2009,” she said.
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