BRINKLEY STRETCHING OUT FARFETCH OPENS ON BEAUTY AN OFFICE CHRISTIE BRINKLEY IN TOKYO AS UNVEILS A NEW SKIN CARE THE RETAILER NETWORK LINE AND TALKS ABOUT CONTINUES TO HER 40 YEARS IN THE ADD COUNTRIES SOPHIA’S SPACE FASHION AND BEAUTY AND STORES. NASTY GAL FOUNDER OPENS THE WORLDS. PAGE 8 PAGE 9 BRAND’S FIRST BRICK-AND-MORTAR STORE. PAGE 5

GAP’S INCOMING CEO XXXXXX Peck Picks His Team: Xxx Xxx Xxx Unveils Major Shake-Up Xxx Xxx Xxx Xxx By DAVID MOIN By OVIDIS A NATQUE NET ART PECK isn’t wasting any time at Gap Inc. Although he doesn’t offi cially take the reins of chief MENDA VOLUPTA turepudit, quias nestis accus as executive offi cer until February, succeeding Glenn resti beriasi doluptatem. Nem aut aperunto est ut Murphy, Peck is showing his impatience with the re- perrori taquidem aut qui blatem ad eium fugiantur tailer’s ongoing lackluster performance by shaking up modi cus vel iusam fugiamus, omnim volendus, sinus its management. On Thursday, he named new heads eaquas dolorep tatatent qui que sandelendis quis aut FRIDAY, NOVEMBER 21, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY for the Gap and Banana Republic divisions. voluptur? Jeff Kirwan, 48, for the past three years president Nam essint aut ea duntinv elendiciam num exp- WWD labo ribusae niam quidebi ssimet autat. of greater China for Gap Inc., will become global president for Gap brand in December. He succeeds Antiur, nobit faceptat. Stephen Sunnucks, who will leave the company on Idis molupti nonsequis doloren impelecae nusci Dec. 19, after steering the growth of the brand to al- im solente molorep eribus des corpora tibus, odis et most 50 countries over the past decade. dunt dolorpo reiciatem dolo int adigend uciendus Andi Owen, 49, who currently leads the Gap Outlet aperita consequam utatur, quiani conectiam ut as division, will become global president for Banana intionsequas et quaeriat qui aut unt omniendi blabo. Republic on Jan. 5. She succeeds Jack Calhoun, who will Tem voluptat quam cum et fugia il mo etus aut eicae depart in February. He led the brand for eight years. lam, offi ctoribus adistionsed que non re cone con The decisive action by Peck, coming just a month cumquasped et quis del mo dellupt ataerum faccae after he was named incoming ceo, was triggered by repudae ne voluptat la cusapit periscilit quis eiur, aut the prolonged disappointments at both Gap and et atur asitisimi, autem quo quia nis quid qui ut auta Banana Republic. dolesequi corum qui debitatur, quiam nis mos volu- Last quarter was no exception. Comparable-store pis sequam faccus si im el il isimoditis volorporem sales at Gap Global were down 5 percent and Banana imporro conse con ratquiasse vellum re et et optate Republic’s comps fell fl at for the period ended Nov. 1. con consequuntio doluptiam eata digenis aut offi c to On the other hand, Old Navy Global reported that inctur sam re re dolupta tessin con pe corio dolorum its comp sales rose 1 percent, which is hardly impres- aditias et el et mi, ius dolori bla eosam utem even- sive but indicative of the long term trend of Old Navy dae offi cae nobistr umquos milliqui apiendam rere- outperforming the other two core divisions. Old Navy hen dendandi doluptur maiorrovid eum es quid eturi has been fueling the lion’s share of Gap Inc. profi ts tem re, incipsa nisquiam quatenimet quiditatem im- by selling much cheaper clothes and having supe- porrovid ut quia di simporest et la dolorro blant eos rior marketing and margins. Gap Inc. also operates dolupti atistia cus, aborpore landio to blautet as aut Athleta, Piperlime and Intermix. offi cipsam earciaes excearum, qui te offi cilicit est aut “I was impatient to get the team in place for 2015,” id mil min ea pore mil iumque pro vit offi cab il en- Peck said during the conference call covering the ex- dantotatum verovid mod et rat.Soloremquiam et pro ecutive changes and Gap Inc.’s third quarter results. que pelique plibus et, similiqui ius essi re arum et The executive changes were “based on my deeper od mo earum aliquat latur, offi c tem faciend itatend experience and knowledge of the company and its esequatur molene landit endam solor sene vitaqua ti- executives,” Peck said. asitaquunt faccuptur sum qui od untorum facitiis do- SEE PAGE 4 lessita dolupta temporepe platect enistiam con conse- ditae. Itatum et aut ant enim acillor am eos esectas et explam repudae. Nequam, omniminum faceruptatas The Cavalli Sale Saga: Testing It Goes On, and On…. Xxxxxx Xxxxxx By OVIDIS A NATQUE NET By LUISA ZARGANI MENDA VOLUPTA turepudit, quias nestis accus as — To sell or not to sell? resti beriasi doluptatem. Nem aut aperunto est ut That is one of the questions casting a cloud over perrori taquidem aut qui blatem ad eium fugiantur The Waters the sale of a majority stake in the Roberto Cavalli modi cus vel iusam fugiamus, omnim volendus, sinus Asia has brought to the U.S. brightening products group to VTB Capital, a transaction that has been eaquas dolorep tatatent qui que sandelendis quis aut and alphabet creams, but now it’s bringing a new taking months to materialize. The deal is still on the voluptur? table, but the parties have yet to come to an agree- Nam essint aut ea duntinv elendiciam num exp- secret agent — water. It might seem obvious, ment, according to a market source. labo ribusae niam quidebi ssimet autat. but the beauty industry is going with the fl ow. Reached by WWD, a wistful Cavalli expressed Antiur, nobit faceptat. For more, see page 6. concerns about his future and that of his brand. “It Idis molupti nonsequis doloren impelecae nusci has been diffi cult to understand the real intentions im solente molorep eribus des corpora tibus, odis et of these strange buyers, and I have decided that if dunt dolorpo reiciatem dolo int adigend uciendus you take away the pleasure of creating, I would grow aperita consequam utatur, quiani conectiam ut as old,” said the designer, implying that total control of intionsequas et quaeriat qui aut unt omniendi blabo. the brand remains a priority, one that would perhaps Tem voluptat quam cum et fugia il mo etus aut eicae have been compromised with the sale. lam, offi ctoribus adistionsed que non re cone con “I would have wanted so much attention on cumquasped et quis del mo dellupt ataerum faccae Cavalli,” he added, blaming Ittierre’s bankruptcy for repudae ne voluptat la cusapit periscilit quis eiur, aut “very much complicating the continuation of my com- et atur asitisimi, autem quo quia nis quid qui ut auta pany.” The Italian manufacturer was Just Cavalli’s li- dolesequi corum qui debitatur, quiam nis mos volu- censee, but was put under government-backed bank- pis sequam faccus si im el il isimoditis volorporem ruptcy protection in 2009. The line is now produced imporro conse con ratquiasse vellum re et et optate by Staff International. con consequuntio doluptiam eata digenis aut offi c “I have grand projects in mind — this is also the to inctur sam re re dolupta tessin con pe corio do- reason that pushes me to wait, to be confi dent of a lorum aditias et el et mi, ius dolori bla eosam utem sure thing with sure partners,” concluded Cavalli. evendae offi cae nobistr umquos milliqui apiendam One source said the parties are “still negotiating rerehen dendandi doluptur maiorrovid eum es quid and fi ne-tuning the details” and that “another kind eturi tem re, incipsa nisquiam quatenimet quiditatem of agreement could be reached,” pointing to glitches imporrovid ut quia di simporest et la dolorro blan PHOTO BY GEORGE CHINSEE, STYLED BY SHARON BER in the original contract. It is understood that Cavalli SEE PAGE 9 SEE PAGE XX 2 WWD FRIDAY, NOVEMBER 21, 2014 WWD.COM Gaultier Workers Call Attention to Cuts DIGITAL BRIEFING BOX FOR MORE COVERAGE, FIND US ON WWD.COM, SOCIAL AND MOBILE. headquarters on the Avenue des The madcap designer, exiting By MILES SOCHA Champs-Élysées. rtw after 38 years, lamented the Ralph Toledano, president of speed of fashion and the associ- ON WWD.COM PARIS — About 40 employees the fashion division at Puig, de- ated business pressures, saying of Jean Paul Gaultier SAS dem- clined all comment on the plan it saps creativity and, ultimately, onstrated in Paris on Thursday but told WWD: “This is a pro- robs consumers of newness. Top 10 NBA Fashion Plates to call attention to proposed job cess. We are in a free country. If “Commercial constraints, as WWD took a look at the state of NBA fashion and found cuts at the fashion house. people want to make a demon- well as the frenetic pace of col- 10 style stars off the court. Log on to WWD.com to see In September, the French de- stration, it’s their right, and we lections, don’t leave any free- who is leading fashion’s fast break now. signer announced plans to halt respect that.” dom nor the necessary time to his women’s and men’s ready-to- Gaultier’s decision to stop find fresh ideas and to inno- Chris Carmelo Russell Westbrook wear collections in order to focus rtw and accessories was made vate,” he wrote in a letter ad- Anthony on couture, fragrances and spe- in concert with Puig executives dressed to WWD. Bosh cial projects. following an “in-depth assess- The retrenchment pointed to The works council said it ment” of the future of the house, the challenges faced by midsize “deplores the extent of the re- as reported. players in an era of megabrands organization and the number of “We looked at various pos- with global store networks. redundancies, even though the sibilities, considering the pres- It also suggests that, despite economic situation of the Puig ent state of the company, and the French designer’s enduring group is excellent.” we have reached the same popularity and cult following — Puig, the Spanish fragrance conclusion,” Gaultier said in underscored by attendance re- and fashion group, acquired a September. “This is a new be- cords for his roving retrospective majority stake in Gaultier in ginning. I will be able to express exhibition — the fashion house 2011, with the founding designer again my creativity fully and has struggled to translate his cre- Dwyane Wade holding the balance of shares. without constraints.” ativity into profi ts. PHOTO BY NATHANIEL S. BUTLER/NBAE VIA GETTY IMAGES Puig’s net income rose 2 per- Carmelo Anthony cent in 2013 to 176 million euros, PHOTO BY DIMITRIOS KAMBOURIS/GETTY IMAGES FOR IWC or $233.8 million at average ex- change for the period, while rev- Chris Bosh enues advanced 1 percent to 1.5 PHOTO BY KRIS CONNOR/GETTY IMAGES FOR MR. NICE TIE billion euros, or $1.99 billion. According to the works coun- LeBron James cil, the reorganization plan calls PHOTO BY ROCKY WIDNER/NBAE VIA GETTY IMAGES for 29 layoffs, many of them re- Russell Westbrook lated to the closure of two bou- PHOTO BY PIERRE SUU/GETTY IMAGES tiques and one shop-in-shop in Paris. In addition, 13 positions that are either vacant or occu- pied by term employees are to be eliminated. The Gaultier compa- ny employs about 104 people, the council noted. Dwyane Wade Wielding a hand-painted LeBron James cloth banner and slogans plas- tered on briefcases and hand- bags, demonstrators marched from Nina Ricci’s offices on Jean Paul Gaultier employees in Paris Thursday. IMAN SHUMPERT ON the Avenue Montaigne to Puig DOMINIQUE MAÎTRE PHOTO BY Q&A STYLE AND SUBSTANCE #WWDPROSTYLE The shooting guard for Zappos Opens Store in Las Vegas the New York Knicks, best known for his signature high-top fade, By SHARON EDELSON discusses why he doesn't use a stylist, who NBA ZAPPOS TODAY is launching a 20,000-square-foot players are really trying pop-up shop in downtown Las Vegas. The physical to impress, and why he store, Zappos’ fi rst, is driven by technology and will be open for business 24-7 during the holiday period designed his own kilt. though Dec. 31. The Zappos pop-up shop is merchandised with 16 different areas offering everything from couture to athletic wear. Zappos joins other e-tailers dipping a toe into Zappos.com’s technology-driven pop-up physical retail such as Warby Parker, Boohoo and shop could alter the nature of retail. Nasty Gal, which opened its fi rst physical location on I DON’T WANT THE Melrose Avenue in . (See story, page 5.) ATTENTION. I WANT Steve Hill, vice president of merchandising at Zappos, said the company had been talking about service and the people working at the pop-up are “ THE RESPECT.” physical retail for the past year, but didn’t want bringing that to life in real time.” Hill said employ- to do a traditional store. “We didn’t know how we ees have been trained to “focus on taking care of SHUMPERTY PHOTO BY THOMAS IANNACCONE; BOSH BY KRIS CONNOR/GETTY IMAGES FOR MR. NICE TIE; JAMES BY ROCKY WIDNER/NBAE VIA GETTY IMAGES; WADE BY NATHANIEL S. BUTLER/NBAE VIA GETTYDIMITRIOS KAMBOURIS/GETTY PIERRE SUU/GETTY IMAGES; ANTHONY BY IMAGES FOR IWC; WESTBROOK BY IMAGES NATHANIEL WIDNER/NBAE VIA GETTY BY ROCKY IMAGES; WADE KRIS CONNOR/GETTY NICE TIE; JAMES BY THOMAS IANNACCONE; BOSH BY IMAGES FOR MR. PHOTO BY SHUMPERTY would convey the breadth of the assortment,” he customers, not selling.” said. Then Zappos partnered with OrderWithMe, a Still, with all the back-up inventory online, “no retail logistics fi rm that’s been managing its inven- one will ever feel disappointed if Zappos doesn’t FOLLOW US ON SOCIAL MEDIA tory for more than four years and recently raised have the size or color they want because they’ll get @ WWD.com/social $28 million. OrderWithMe uses algorithms that allow it the next day,” Jenkins said. mom and pop retailers to band together and buy in One of Zappos’ initiatives is growing its apparel TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. bulk at a discount. business and Hill said that about three-quarters of WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. “We want to learn about what consumers like and the store is devoted to clothing. Zappos features COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 208, NO. 107. FRIDAY, NOVEMBER 21, 2014. WWD (ISSN 0149-5380) is published daily (except Saturdays, the different categories they prefer,” said Jonathan designers such as Elie Tahari, Nicole Miller, Trina Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and Jenkins, OrderWithMe’s chief executive officer. Turke, Kate Spade New York, BCBG Max Azria and two additional issues in February and September) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Fl, Los Angeles, CA 90025. Periodicals postage paid at Los Angeles, CA, “Zappos is known for shoes, but they also have wed- Nanette Lepore. and at additional mailing offi ces. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, ding dresses and performance apparel. This allows The store’s parking lot has been transformed Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 6356, Harlan, IA, 51593. into a winter wonderland with a 50-foot Christmas FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, consumers to fi nd products and touch and feel them. P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at wwdPrint@cdsfulfi llment.com. Please If a size or color isn’t available, shoppers can scan tree and banks of fake snow. Shoppers are asked to include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes items to their virtual carts and the order will be deliv- bring a gift to put under the tree. or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Offi ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. ered free of charge to their home the following day.” The store has a cafe serving hot chocolate, slid- If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfi ed “One of the reasons we wanted such a big footprint is ers, sandwiches and tacos. A bar serves alcoholic with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues contained in a to see what customers are most interested in,” Hill said, beverages, but Zappos really sees the pop-up as a subscription term and/or the way the product is delivered. Address all editorial, business, and production correspondence to adding that the space is divided into rooms with vi- family affair. On weekends, food trucks will arrive WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax request to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. gnettes showcasing different types of apparel that even- serving funnel cakes and other holiday treats. For reuse permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. tually lead to the shoe room. What shoppers purchase Hill declined to project sales volume for the To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, “will inform future stores we decide to open,” he said. store. “It’s an experiment so we can see what might UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, The pop-up is open 24-7 “because you don’t go to make sense for a freestanding physical location,” AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY Zappos.com at 3 a.m. and they say, ‘We’re closed,’” he said. “People can walk in and physically experi- REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS Jenkins said. “Zappos is known for its customer ence the brand.” SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. DECEMBER

The Beauty Inc Awards Issue

CLOSE DATE: 11/21 ISSUE DATE: 12/12

BONUS DISTRIBUTION: BEAUTY INC AWARDS, CEW BEAUTY OF GIVING FOR MORE INFORMATION CONTACT ELLIE_GHADIMIFAIRCHILDFASHIONCOM  4 WWD friday, november 21, 2014 Gap Inc. Shakes Up Exec Ranks Perry Ellis Narrows Focus {Continued from page one} rolling out in-store online ordering, which could margin brands, totaling $65 “Jeff has been building our china business,” he lift e-commerce sales and conversion rates. “it is By Vicki M. Young million in revenues. According added. “He’s a great leader, a very balanced ex- intended to instantaneously change the conversa- to regulatory filings with the ecutive, somebody who gets our brands and gets tion from ‘we don’t have it’ to ‘i can get it to you,’” PerrY ellis international securities and exchange brand building. Murphy said. inc. is focused on growing its commission, those divestitures “Jeff and i have a high degree of urgency. We on the more positive side, the - core brands and shedding its include the sale of certain need to get the aesthetic righted for the brand.” based specialty retailer cited its growth in china noncore assets. Asian trademark rights to its The corporate profit picture during the third with gap brand and old navy, the expansion of Financial sources told John Henry brand for $7.5 mil- quarter was good, despite the sluggish sales. net Athleta in the u.s., and stepped up omnichannel WWD that the company is still lion and, more recently, the $1.3 income rose 4.2 percent to $351 million from $337 services, as highlights. Murphy also cited some having discussions with buyers million sale of the Australian, million in the year-ago period. The increase was bright spots at gap brand, including gap baby, gap for noncore assets it still owns Fiji and new Zealand trade- largely attributed to good expense and inventory fit and the outerwear. looking forward, Murphy under the Perry ellis umbrel- mark rights to Jantzen. controls amid the challenging retail landscape. said the corporation has “an improved assortment la. The company has not hired The company said it was operating margin was 13.9 percent versus 14.5 and our customer communications are the best an investment banker to sell focused on generating value percent in the year-ago quarter. i’ve seen put forward for the holiday season.” the entire firm, nor has there from its core brands, such as inventory dollars per store were down 2 per- But the team is hoping for a better year ahead been any offer for the entire Perry ellis, original Penguin, cent at the end of the third quarter, and to begin it with a fresh start and company, the sources said. rafaella, Ben Hogan and its golf below previous guidance of being some new leadership. Murphy said he some individuals familiar with category, through wholesale and up in the low single digits. Also, Jeff encouraged Peck “to put together a those talks said that while the licensing arrangements. there was reduction in capital ex- Kirwan winning combination of new or exist- company would have a fidu- it also spoke about cor- penditures for gap stores, with ing executives” so gap can strive to be ciary duty to shareholders to porate governance issues, of remodels getting held back, in re- “the leading global apparel company consider an offer to sell the which activist investors legion sponse to the challenging operating around the world.” company if one were forthcom- Partners and the california performance. Murphy expressed confidence in ing, an outright sale is not the state Teachers’ retirement looking ahead, diluted earnings Marissa Webb, the creative director of overriding goal of the firm. system have been agitating per share for fiscal 2014 are ex- Banana republic. “i really feel strong- That information on for change. The company said pected in the range of $2.73 to $2.78, ly that she is going to position Banana Thursday coincided with de- there is no need to form a stra- including the gain on a $39 million republic strongly for the future.” tails in an open letter by Perry tegic committee, given that its asset sale. That’s down from the regarding kirwan, Murphy said ellis chairman and chief execu- board is already working on previous projection of $2.95 to $3 he will be “very much focused on the tive officer george Feldenkreis, an ongoing review. Further, made in Q2 back in August. china business,” which includes old along with the firm’s lead in- the company added to its The margin for the full year is navy and gap stores. dependent director, Joseph P. board veteran retailer J. David seen at 12.5 percent compared to “We’ll start 2015 with a management lacher. The letter to its share- scheiner and online, direct-to- 13.3 percent last year. team comprised of both established executives holders noted some of the firm’s consumer expert Alexandra earnings per diluted share were 80 cents, versus and the next generation of brand leaders ready initiatives, as well as results Wilkis Wilson of gilt groupe 72 cents a year ago, representing an 11 percent in- for the next generation of customers,” said Peck, from ongoing dialogues with ac- and glamsquad fame. in line crease, and a penny above the Wall street consensus. noting that there will be transition periods for the tivist shareholders. with the company’s plan, But total sales slipped 0.1 percent to $3.97 bil- executives helping to guide the company through The letter said that, two Wilkis Wilson is expected to lion from $3.98 billion a year ago, while compa- the holiday period to reduce disruption. years ago, the company began a provide expertise on the di- rable-store sales were down 2 percent versus a 1 He credited owen for being “fluent across strategic operating review that rect-to-consumer market. percent increase last year. multiple disciplines in the business” growing up resulted in the implementation The letter also said the “A company like gap inc. with our six brands, in the field organization, transitioning into mer- of a profitability improvement company is reviewing is- i don’t think anybody ever thinks we should nega- chandising and having experience in the online, plan in the first quarter of fiscal sues raised by the activists tive comp. it just makes no sense,” Murphy said specialty stores and outlet channels. 2015. That plan includes a “goal over related-party initiatives. during the conference call. “We had a much bet- According to Peck, both owen and kirwan to exit underperforming, low- Those related-party trans- ter quarter done by the finance team...i have told have delivered consistent performances. growth brands and businesses,” actions, which the company everyone on the commercial side of the business “consistency is a very important word for as well as driving international said it will phase out where it that we need to do better.” me. it starts with exceptional product that we and licensing growth through can, pertain to historical mat- old navy was stronger than any of the other [should] deliver consistently, season after season. direct investment and strategic ters before the company went brands, and there was particular dissatisfaction consistency is a critical issue.” partnerships. public, such as the leasing of with gap’s women’s business, and e-commerce Another critical issue will emerge next month. The company said that, its headquarters and distribu- overall, which only saw 5 percent growth in third As Peck said, in December and January, the teams since the beginning of fiscal tion warehouse in a building quarter, versus 20 percent a year ago. gap inc. is will “really align our priorities.” year 2014, it has exited 29 low- owned by Feldenkreis. More Caution Than Optimism in Stores’ Q4 Views its approach to the fourth quarter. By ArnolD J. kArr While l Brands, which also owns and DAViD Moin Third-Quarter Retail Earnings Scorecard Bath & Body Works, is forecasting a low- single-digit comp increase for the fourth reTAilers rePorTing third-quarter Revenues Comps Earnings Vs. EPS Consensus Inventories quarter, it expects to increase gross mar- sales are seeing some hopeful signs for gin over the 43 percent level registered holiday, but they’re being unusually care- Gap -0.1% -2% 4.2% Miss 3.3% in the final quarter of 2013. still, the Q4 ful to restrain their optimism. earnings guidance of between $1.61 and The predominance of caution was Ross Stores 8.4% 4% 12.3% Beat 4.5% $1.71 a diluted share sits below the $1.76 clear throughout the day Thursday, as consensus estimate of analysts. third-quarter results provided a buffet L Brands 6.8% 5% 43.3% Beat -9.7% l Brands finished the quarter with 9.7 of missed expectations (The Buckle inc.), percent less inventory than it had a year larger losses (The Bon-Ton stores inc.) ago and ready to “read, react and chase” and lower profits (stein Mart inc.). While Bon-Ton Stores -1.3% -0.8% Larger loss Miss 6.1% should it become necessary, according to ross stores inc. ended the day on a high chief financial officer stuart Burgdoerfer. note, it came just after gap inc. disap- Stein Mart 4.5% 3.1% Loss vs. profit Beat 4.3% “in a choppy and promotional retail en- pointed investors with higher earnings vironment, l Brands is offering a unique that missed expectations, lower net and The Buckle 1.9% -3% 0.1% Miss 0.6% product assortment and experience to con- comparable-store sales, lower guidance sumers, limiting the need for price-focused and a management shake-up. Cato 7.5% 4% 16.5% Beat -2.5% tactics...to drive sales,” commented Baird Bon-Ton weathered the sharpest drop- equity research analyst Mark Altschwager, off as its quarterly net loss increased who noted that the firm’s fourth-quarter more than tenfold to $11 million on lower SOURCE: COmpany REpORtS, yahOO FinanCE EStimatES. guidance “appears conservative.” net and comp sales. kathryn Bufano, who Despite a rare earnings “miss” in which joined the retailer as president and chief corp. and J.c. Penney co. inc. tainties in the macroeconomic environment profits rose just 0.1 percent and comps executive officer 12 weeks ago, called the ross stores exceeded analysts’ expecta- and the likelihood of an intensely competi- finished down 3 percent, The Buckle inc. comp results “very disappointing. They had tions with a 12.3 percent leap in net income, tive and promotional holiday season.” saw its shares rise 3.2 percent to $51.04 been tracking positively but traffic dropped a 8.4 percent upswing in revenues and a 4 Her counterpart at TJX, carol Thursday. Janney capital Markets analyst significantly in the second half of october percent jump in comps, stronger than even Meyrowitz, struck a similar note earlier Adrienne Yih-Tennant said that the firm’s with the onset of warmer weather.” its off-price rival The TJX cos. inc. reported in the week when asked about the firm’s “branded merchandising strategy miti- she said she was encouraged by on Tuesday. still, ross guided Wall street to conservative guidance. gates long-term margin pressure and al- november sales so far, “but we are going to fourth-quarter earnings of between $1.05 and l Brands inc. reported strong growth lows for superior inventory management.” be muted” on the outlook due to the “cau- $1.09 on comp growth of just 1 to 2 percent. in sales and earnings but also provided However, what’s good for margins — tious consumer with limited discretionary Barbara rentler, ceo, expressed confi- conservative guidance below Wall street Buckle’s were down 30 basis points to 43.7 income and the continuation of the aggres- dence in the store’s selection of “sharply estimates late Wednesday. on a con- percent of sales — may hamper the compa- sive promotional environment. You are priced name brand fashions and gifts to ap- ference call Thursday, sharen Jester ny’s ability to build market share, she added. seeing our whole peer group muted.” peal to today’s value-focused customers. That Turney, president and ceo of Victoria’s stein Mart inc. reported a healthy Bon-Ton’s larger department store said, we believe it is prudent to maintain a secret, said that the brand was empha- 4.5 percent sales gain but slid to a small competitors include Macy’s inc., ’s cautious outlook given the ongoing uncer- sizing differentiation and discipline in quarterly loss on charges. WWD FRIDAY, NOVEMBER 21, 2014 5 WWD.COM Nasty Gal Makes Move Into Physical Retail that entails, whether it’s get- “Fortunately, Fred Segal’s By MARCY MEDINA ting another size or keeping been here since the Sixties but the store clean. There’s noth- L.A. is constantly changing. Is it LOS ANGELES — “I can’t be- ing I wouldn’t do in this store Third Street? La Brea? Our fi rst lieve I’m standing here. Is and I hope that’s how the team store is going to be a destination this really my store?” Sophia works,” she said. no matter where it is, but I’d Amoruso asked the circle of Amoruso is the fi rst to admit rather not pop up in the trendi- Nasty Gal staffers who were she’s got a lot to learn about est newest part of town,” said surrounding her two days be- brick-and-mortar retail. “I’m Amoruso. fore her first brick-and-mortar learning a whole new skill set Said Nasty Gal president and opening today at 8115 Melrose from this experience; it’s a chal- chief product officer Sheree Avenue. “It’s magical.” lenge for sure. Like, there’s no Waterson, “Since Melrose After snapping an impromptu time lapse between the time a Avenue’s roots were vintage and group shot with an iPhone, the customer asks a question and the irreverent, is there any street 30-year-old founder and chief time you answer it. I’ve always better? It’s very iconic in that executive officer jumped into had the luxury of articulating ex- way and that’s our roots, as well. one of the four one-way-mir- actly what my response would be I think it’s so interesting that we rored dressing rooms with a few via e-mail, but now the response are across from Fred Segal be- staffers to test it out. While only has to be in the moment and still cause I think that the people who the dimmest outlines of their sil- make someone happy and give shop there will shop here, too.” houettes were visible, the view them what they want.” Indeed, whether it’s a teen- from the inside is that of looking And the million, or billion, ager looking for a skirt or top for out a clear glass window. dollar question is always, ‘What less than $100 or a thirtysome- The fact that the mirrored do women, i.e., your customers, thing splurging on a vintage gold dressing room is one of the want?’ According to Amoruso, lamé Yves Saint Laurent jacket, 2,500-square-foot store’s central it’s “Just being where she wants it can be found here. About 30 features proves that Amoruso to be and giving her the oppor- percent of the merchandise is isn’t trying to reinvent the retail tunity to try things on before she Nasty Gal, 5 to 10 percent vintage wheel with high-tech innova- buys them. It’s going to force us at prices $1,000 and up, and the tions one might expect from a to learn so many things. We’re rest are brands that the company native digital company that has also sells online, such as Three reached $130 million in annual Floor, Discount Trash, Cameo, sales in just six years. In fact, Eugenia Kim and Shakuhachi. her store looks like just that — a Also available beginning Dec. 4 plate glass facade features sassy will be its MAC x Nasty Gal lip- mannequins wearing sparkly sticks. Waterson declined to give The store is 2,500 square feet. dresses, bra tops, short skirts, sales projections, but Amoruso KEENAN STEFANIE PHOTOS BY funky heels and cropped faux- said they are “conservative.” fur jackets, and inside, there Most of the new merchandise re- out the platform we built would like, ‘We are opening our fi rst are clean white racks, tables tails for less than $200. have been so much harder. So store, wanna invest?’ It has to and shelves laden with a mix While the store already looks everything feels like it happens work fi rst.” of Nasty Gal brand items and picture-perfect, there is still a in time with Nasty Gal in a very She envisions starting another vintage designer clothes and ac- corner to be built out that will serendipitous way. Shopping is company, “Only if it was comple- cessories. The mirrored dress- carry tech accessories, maga- just part of what we are doing. mentary. I don’t want to distract ing rooms dominate the center zines and books, as well as a What I’m really trying to do is from Nasty Gal because there’s of the white-beamed, square- Sophia 1,000-square-foot back building take the community that we’ve a lot of runway ahead of us to shaped store, but that’s because Amoruso that will eventually become a built online and give our girls fi gure out. Maybe someday, if it’s Amoruso wanted to offer a high- shoe salon (Shoe Cult and other a place to congregate and meet part of Nasty Gal, but I don’t plan touch feature for a customer brands are displayed on the tri- one another and meet us. That’s on going anywhere.” used to high-tech shopping not saying we’re final, we’re angular concrete steps at the been relatively impossible and Surely, she must get offers? (sales associates will have iPads done, we’re perfect. We’re al- back of the store). it’s amazing to have a communi- “Everything is entertaining and for mobile POS, of course). ways a work in progress, even if “This a natural move, but I’m ty that feels like we’re all part of if something seems worth ex- “There will be a level of ser- we have a few hundred people not a purist in any way,” said something, but that for the most ploring, I’d probably explore it, vice in the store that doesn’t re- on our team like today, or when Amoruso, who started her inter- part I’ve never met. And what but only if it preserves what we ally exist in other places where I had fi ve people. I’m excited to view seated on the round otto- form that takes is really limitless are building here,” she said. “We you can shop for accessibly- get that real-time feedback be- man in the dressing room area, in terms of how to activate that need to open more stores. There priced fashion. At the very bot- cause we can engineer that back but soon grew too distracted in the stores beyond shopping.” has to be some amount of rep- tom of it, that is what we’re into the business so much faster and excited by the mirrors and Amoruso said she’s not put- etition so there’s some muscle doing, and having the fitting than data points.” buzz of last-minute prepara- ting the cart before the horse in memory in a business before rooms central really speaks to While more stores in Los tions that she moved her seat terms of eyeing an initial public you let anyone else mess with that. It’s not like a long hallway Angeles and in other cities are to the back corner of the store. offering or even courting more it. Even if I’m not serious [about of tiny rooms that’s ‘get ’em in, part of the plan, the company “I don’t think had I been like, ‘I investors. The company has re- selling the company], I want to get ’em out.’ It’s a fun experi- is focused on the task at hand. want to be a Melrose boutique ceived $49 million in two rounds learn from having a conversa- ence that forces service to each And as far as location, they had owner,’ I would have fi gured it of funding from Index Ventures. tion about it, because I’m not the room. It’s our job taking care a good model in neighbor Fred out, because opening a store “We have a lot to prove with our MBA who knows exactly what to of the customer and whatever Segal Melrose across the street. or even launching a label with- fi rst store. It’s a tough time to be do. I kind of learn as I go.”

lished bolo-style necklaces and ultrabright sweaters displayed Elder Statesman Gets a Home on vintage chairs, Prohibition-era bottles and movable alder racks WEST HOLLYWOOD, Calif. — store to call home. a slightly off-the-beaten-path with copper rails. Merchandise Nothing Greg Chait does is by The store is in what was, lit- distance from, the local style ranges from a $195 bracelet to a the book. erally, a home in the heart of scene he has been a part of since $12,000 cashmere sleeping bag; The founder and owner of West Hollywood: 607 N. Huntley founding the brand (before that, ready-to-wear ranges between luxe cashmere lifestyle brand Drive, off the western stretch of he was a music rep at talent $400 for a cashmere T-shirt to The Elder Statesman started Melrose Avenue, where tenants agency The Firm and a partner $2,200 for a Baja sweater. his line in 2007 with a cashmere like Balenciaga, Rag & Bone, in the Australian denim brand Other details include cus- blanket sold at Maxfi eld, then Urth Caffe and Bodhi Tree book- Ksubi, which launched Stateside tom-made Guatemalan denim- not only soldiered on through store make for eclectic and fash- in the early Aughts. He sold his wrapped hangers; knotty-pine the recession with items retail- ionable foot traffi c. shares in 2007). framed mirrors; five center- ing in the thousands of dollars “I didn’t know what I had in But location was the only Greg Chait pivot wood-framed glass doors,

but also grew into a ready-to- mind for a store until I saw this,” thing he preserved from the KEENAN STEFANIE PHOTO BY which make the space indoor- wear, accessories, eyewear and said Chait, standing outside the building. “We tore through three outdoor; and giant rock crystals kids clothing brand. The com- converted bungalow at dusk. driveways, rebuilt the founda- culent landscaping — a nod to — one retails for $6,000 — set pany won the $300,000 CFDA/ The white stucco structure, with tion and replaced everything,” his childhood home of Arizona among the olive and orange Vogue Fashion Fund prize in 1,600 square feet inside and a said Chait, who used design fi rm — and a stone-paver-lined court- trees in the garden. 2012 and received an invest- 1,600-square-foot wraparound Commune, longtime contractor yard with built-in wooden seat- Chait said he doesn’t have ment from Chrome Hearts ear- patio, is framed by the massive Loren Crawford, sweat equity ing that invites not only shop- sales projections or any pre- lier this year. blue glass Pacifi c Design Center, from several of his employees pers but hanger-outers. conceived ideas about the Now, in addition to private the showroom and creative of- and funding from Chrome Hearts “Apart from our private show- store, which offi cially opens on sales and about 65 points of fice complex that dominates to create the retail environment. room or our factory, there’s no Saturday with an afternoon fete. sale worldwide — befi tting the most cityscapes in this part of They added a roof and other place to see the range of “There’s no set layout or plan. brand’s unique nature, its num- town. For Chait, the store’s geo- domed skylights, all fully clad what we offer,” he said, gestur- It’s designed to invite discovery ber-one market is Switzerland — graphic location represents his in copper; alder-wood floors, ing to the selection of cashmere and to be always changing.” The Elder Statesman has its own participation in, although at doors and window frames; suc- stuffed animals, jewel-embel- — M.M. 6 WWD friday, november 21, 2014

A variety of products that beauty contain a base of water. n Ber O ar sH

BY led sTY insee, H e C G r O

PHOTO BY Ge PHOTO BY Latest Asian Beauty Wave Washes Ashore

tional hydrating products on the market mium skin-care brands since the as- begin selling at retailers in april, con- By Jayme Cyk that tend to be rich and sometimes greasy. sortment launched in the spring. tains a high percentage of H20. Priced at $110, Hydra beauty micro additionally, noted that target. “We looked at the asian market for inspi- It’s been around since Creation, but serum will launch in about 12,000 doors com is 20 percent of its u.s. business. ration with sensorial water-based products,” the beauty industry has finally discovered worldwide. although executives declined Givenchy, too, is adding to its Hydra said samantha Cutler, chief of product de- the latest and greatest ingredient: water. to break out sales projections, industry sparkling franchise in February with velopment at . “they’re gaining momen- “Finally, the beauty world and con- sources estimate that the Chanel serum High moisturizing’’ Luminescence sap- tum in asia because of the humid climate sumers are discovering that well-bal- could generate as much as $20 million at serum, with an objective to enhance the and women are looking for product that has anced skin is a matter of water and oil,” retail in the u.s. in its first year on counter. benefits of other products the consumer fewer ingredients and has a lightweight feel.” said bernardin, general man- but there are more iterations than uses in conjunction. terry de Gunzburg, who is no stranger ager of Information & Inspiration, a mar- just water-based serums and moistur- “[Water-based] products can be used to this trend, launched a limited-edition, ket research company that specializes in izers. Perricone md is unveiling blue in association with other items to boost tea-infused, no pigment collection of lip monitoring the asian market. Plasma Cleansing treatment, a water- the performance [of other formulas],” said gloss, bronzer and blush last summer. “Cosmetic water is used as the first step based no-rinse , in december. Laurent nogueira, scientific communica- “It’s like a tattoo technology, but with a of your moisturizing regimen to replen- “[Water-based] products offer a great tions director at Givenchy. “more and more sheer finish,” said de Gunzburg. “It appears ish lost water from cleansing.” alternative without disrupting the skin,” consumers are adding steps to their beauty like a stain, but is completely transparent.” “First we saw brightening, then we said tania toubba, vice president of mar- routine because they are expecting more to that end, by terry will unveil a wa- saw the alphabet creams and now it’s the keting at Perricone md, who added that intensive and more immediate results.” ter-based spray bronzer for the body and water-based products,” said karen Grant, the cleanser is infused with micelles, a meanwhile, color cosmetics are also face in march. Plus, she is planning on vice president and global industry ana- structure of molecules that trap debris. going with the water flow —m ake up coming out with a water-based skin-care lyst at the nPd Group Inc. “It’s part of “because it’s made of water, it’s actually For ever has created a line of primers line in late 2015. [this asian-inspired] evolution. Whether really hydrating to the skin. It deeply pu- that contain a base of water called step 1 according to de Gunzburg, the range it will take quick hold to [american] con- rifies the pores and the blue plasma sold out in three weeks when it sumers, we will see.” traps impurities [within the formula].” launched in march. but so far, the beauty industry is lapping the treatment, which will be sold on First we saw brightening, she added that the benefits of this up the vital substance. both in color cosmet- perriconemd.com in december and in formulation are hydration and antiag- ics and skin care, beauty brands like Chanel, Perricone md boutiques, and ing due to the infusion of antioxidants. Perricone md, Givenchy, stila, Laneige, nordstrom in January, is priced at $39. then we saw the alphabet “It’s not pigments,” said de Gunzburg. amarte, Jouer, and by While toubba wouldn’t comment “It’s a new generation [of color].” terry are all creating water-based formulas, on sales, industry sources estimate creams and now it’s the brands seem to be on a quest for which are said to deeply penetrate into skin. the cleanser could do $2 million in hydration, but for some, it’s just a “In Japan [water-based products are] the u.s. in its first year on shelves. water-based products. marketing tactic. according to the a basic step,” said bernardin. “In korea, First, consumers needed to be nPd Group, skin-care prod- it’s the sixth or seventh step and third educated on how to use oils; now, it’s — Karen Grant, nPD GrouP Inc. ucts with the word “hydra” or “mois- in China. In europe or the u.s., where water-based products, which could ture” in the name grew 75 percent. consumers are less addicted to a formal just be the next big thing. has named their lat- routine, some might consider it as a new to that end, amorePacific-owned skin equalizer. Launching in march, the est skin-care launch Water Gel. although texture of skin care to be used as a light Laneige came to the u.s. from korea range, which consists of 10 primers and it communicates otherwise, it contains serum or .” in march and launched exclusively at is priced at $36, is divided into two cat- no water whatsoever. It is said to hydrate the nPd Group reported that in 2013, target in its premium skin-care section. egories, five for texture and five for tone. skin due to hyaluronic acid and glycerin. facial skin-care products in a water or Its water-based line was unveiled in “a lot of primers are silicone-based “[the reason it’s called Water Gel is tonic format grew 6 percent. this in- south korea and China in 2002, beating and they give you that instant gratifica- because] the ingredients draw water into cludes products such as toners, hydrating other brands to the punch. tion, but don’t always feel great after the skin,” said kristine schmalenberg, face mists, cleansing waters and many “Laneige believes that water is a key a certain amount of time when you’re associate manager of research and de- softener or essence products. source to life and it’s the key approach to wearing them,” said Lijha stewart, direc- velopment at Johnson & Johnson, who not one to miss out or start a trend, young and lively skin,” said Chinae kim, tor of artistry and education at make up added that this range marks the first time Chanel is launching Hydra beauty micro marketing manager at amorePacific u.s. For ever. “the reason you need the sili- neutrogena is bringing a launch from an- serum in February. the ultralight emul- Inc. “asian consumers are adding one or cone for smoothing is because you want other country to the u.s. sion contains a concentrated form of ca- two hydrating products to their regimen.” to be able to fill in the texture in’’ the skin. Furthermore, is unveiling mellia oil extract and is said to hydrate, In december, Laneige will unveil an Whereas for mattifying, I can use a water its ultimate sun Protection Cream sPF plump and replenish skin. eye gel as part of its hydration range, base because you can rub in the oils and 50+, $36 for 50 ml., and ultimate sun “We all need hydration whatever your which consists of a serum, sleeping mask, technically, silicone is an oil.” Protection sPF 50+, $40 for 100 skin type, whatever your age, whatever moisture cream and gel cream. the col- While the products are being positioned ml., which is said to resist water upon your lifestyle,” said armelle souraud, lection is enriched with mineral water, a as primers, stewart noted that they can be contact and boost uV protection. scientific communications manager at mix of magnesium, manganese and zinc, used on their own. “With the development “some consumers feel that [water- Chanel, who noted that when the serum to help retain moisture. of the 8k camera, it was really about going based] products are not moisturizing is applied, it breaks into water. “Hydration has become a major concern back and seeing what products we’re using enough [to be worn on their own] and will she added that when Chanel spoke to for consumers,” declared kim. “We have on skin, since now, you can see every hair then discover the asian layering tech- a group of asian women about hydration, seen an increase in water-based products follicle and every pore,” she said. “the idea nique by adding product on top of that,” they said the watery texture is to be ex- [on the market] for different skin concerns.” is to have to use less .” said bernardin. “that might be the next pected when it comes to hydrating skin according to target Corp., Laneige similarly, stila’s upcoming makeup step for brands in europe and the u.s.” care, which seems contradictory to tradi- has been one of the most popular pre- line, the aqua collection, which will Come one, come all. WWD FRIDAY, NOVEMBER 21, 2014 7 WWD.COM Beauty M&A to Heat Up looking at smaller, high-quality as- By MOLLY PRIOR sets that will drive growth for years to come. It’s essentially a question THE ROBUST PACE of deal- of parsing through what’s quality making in the beauty space this and what’s not.” year has more brands seeing dol- As the pace of deals contin- lar signs and readying for a po- ues to heat up, bankers said tential sale. And buyers are now potential buyers will span all coming from all over the world. geographies and major product First on the selling block is ex- categories. Asia-based compa- pected to be Too Faced Cosmetics, nies, in particular, are interest- said financial observers. The ed in U.S. brands. Charbin said, whimsical color line will help “They don’t necessarily move kick off what investment bankers fast, but they understand the Rihanna in Altuzarra. Paige Rawl and Miley Cyrus forecast will be a fl urry of merg- space and want to expand their ers and acquisitions activity in the presence in other markets.” fi rst half of 2015. Ho of Financo added, “It’s a Private equity funds with global M&A market.” MAC’s Red Carpet Moment money to spend, brand founders Too Faced — one of the eyeing the success of recent deals last hold outs from the indie- and lip-gloss sales proceeds to as good as they should and strategic buyers looking to brand era of the Nineties — has By RYMA CHIKHOUNE the fi ght against the disease, be, I thought, maybe if broaden their portfolio and geo- tapped Piper Jaffray to explore the pop star has helped the you gave a personality graphic reach will push the pace of a sale, said industry sources. “I HAVEN’T SEEN [the film], MAC AIDS Fund raise more to [the issue] — people deals forward in the new year. The Piper Jaffray has attracted at- so I’m looking forward to than $43 million of the $340 that you watch, engage biggest issue fueling the activity is tention from potential sellers it,” said Rihanna, clad in an million accumulated since with, like and feel that “companies need new sourc- after advising NYX Cosmetics Altuzarra skirt suit on Tuesday the founding of the fund like you’re friends es of growth,” said Andrew Shore, in its sale to L’Oréal and Butter night in West Hollywood at in 1994. “You know where with — then maybe a managing director at Moelis & London, which sold a major- the world premiere of “It’s your money is going, and you’ll want to do Co., which is piquing their inter- ity stake to Encore Consumer Not Over,” a MAC AIDS Fund- you get a product. You something,” he said. est in more modest targets. Capital, earlier this year. sponsored documentary that can’t lose,” she said. The audience “If you are waiting for a big Both Too Faced and Piper explores the lives of three indi- Partnering with who turned up to company, there’s just not that Jaffray declined to comment. PHOTO BY GEORGE CHINSEE, STYLED BY SHARON BER GEORGE CHINSEE, STYLED BY PHOTO BY viduals affected by HIV-AIDS. Rihanna and director the screening in- many out there. The supply is in The color line — founded As the current face of MAC Andrew Jenks, who has cluded 2015 Viva the smaller brands,” said Shore, in 1998 by Jerrod Blandino and Cosmetics’ Viva Glam campaign, spun together a journey Glam spokeswoman referring to companies with Jeremy Johnson as a feminine, Latest Asian Beauty Wave Washes Ashore which donates all its to South Africa, India and Miley Cyrus, who wholesales sales between $20 fl irty and fun antidote to seri- the U.S., MAC hopes Grimes dodged reporters million and $40 million. ous makeup artist brands — sold begin selling at retailers in April, con- to get as many eyes as in Adam with her rumored “There are a lot of strategic a majority stake to the private tains a high percentage of H20. possible on the fi lm, Selman. new boyfriend Patrick [buyers] looking to diversify out- equity fi rm Weston Presidio in “We looked at the Asian market for inspi- Nancy said the fund’s Schwarzenegger in side their core,” said Vennette Ho, 2012. But over the years, the ration with sensorial water-based products,” Mahon global executive director tow; electronic music a managing director at Financo. founders have insisted there said Samantha Cutler, chief of product de- gives Nancy Mahon. “We decided artist Grimes; film- “The activity should continue are no plans to sell the brand, velopment at Stila. “They’re gaining momen- Rihanna to approach Andrew Jenks, maker Liz Goldwyn; through the fi rst half of the year.” which generates an estimated tum in Asia because of the humid climate a hug. who has such a great record MAC Cosmetics glob- While there are still few $100 million in wholesale sales. and women are looking for product that has on MTV, HBO and ESPN, al brand president large companies — or brands Too Faced is sold in Ulta and in fewer ingredients and has a lightweight feel.” to get the word out. His in- Karen Buglisi Weiler; with wholesale sales north of Sephora both domestically and Terry de Gunzburg, who is no stranger volvement was really key in UNAIDS executive di- $50 million — to buy, smaller- aboard, and hero products in- to this trend, launched a limited-edition, the distribution.” rector Michel Sidibé, sized fi rms are increasingly gar- clude Better Than Sex Mascara tea-infused, no pigment collection of lip For Jenks, the goal and MAC AIDS Fund nering more attention from both and Sun Bunny Natural Bronzer. gloss, bronzer and blush last summer. has been to put faces chairman and Estée Lauder fi nancial and strategic buyers. But perhaps the success of “It’s like a tattoo technology, but with a to the epidemic and Cos. Inc. group president John “The strong interest to do deals recent acquisitions is getting sheer fi nish,” said de Gunzburg. “It appears get people involved. Demsey. The film, available continues,” said Andrew Charbin, diffi cult to ignore. like a stain, but is completely transparent.” “Once I started to now in the U.S. on Netfl ix and a vice president at the investment Industry sources estimate To that end, By Terry will unveil a wa- look at the num- Pivot, will be released globally bank The Sage Group. “The larger that L’Oréal may have paid ter-based spray bronzer for the body and bers and saw how on Netfl ix and via SnagFilms on companies, which take a long-term nearly $500 million for the mass- face in March. Plus, she is planning on things aren’t getting Dec. 1, World AIDS Day. strategic perspective, are open to market cosmetics brand NYX. CYRUS PHOTO BY MICHAEL BUCKNER/GETTY IMAGES FOR MAC COSMETICS; ALL OTHERS BY KATIE JONES MICHAEL BUCKNER/GETTYCYRUS PHOTO BY IMAGES FOR MACKATIE COSMETICS; ALL OTHERS BY coming out with a water-based skin-care line in late 2015. According to de Gunzburg, the range sold out in three weeks when it The scene at launched in March. Cosmoprof Asia. She added that the benefi ts of this Cosmoprof Asia: Hub of the East formulation are hydration and antiag- Indeed, sales of cosmetics in have done better, said Davide ing due to the infusion of antioxidants. By ELLEN SHENG China now eclipse sales of gro- Bertocchi, export manager for “It’s not pigments,” said de Gunzburg. ceries as the largest-selling item Erbolario, an Italian skin-care “It’s a new generation [of color].” HONG KONG — With markets in in department stores, accord- brand. Even so, annual sales Brands seem to be on a quest for Europe and North America still ing to a report from the Fung growth in Italy, at 5 percent last hydration, but for some, it’s just a somewhat sluggish, the beauty in- Business Intelligence Center. year, pales in comparison to sales marketing tactic. According to The dustry is looking to Asia for growth. Chinese made up the ma- growth in Asia, which has been NPD Group, facial skin-care prod- As a result, Cosmoprof Asia has jority of buyers and Mandarin about 15 percent a year, he said. ucts with the word “hydra” or “mois- now become a destination fair. Chinese dominated on the show “It’s a good trend, a good mar- ture” in the name grew 75 percent. Foot traffi c at the three-day floor. Highlighting the impor- ket,” Bertocchi said, “we are do- Neutrogena has named their lat- event, held from Nov. 12 to Nov. tance of Chinese buyers, fair or- mestic, Italian market-oriented est skin-care launch Water Gel. Although 14, was very heavy, with 60,000 ganizers again set up a separate and now we want to grow ex- it communicates otherwise, it contains visitors. That is a slight dip ports,” he added. no water whatsoever. It is said to hydrate from last year’s 60,985 visi- Erbolario’s biggest mar- skin due to hyaluronic acid and glycerin. tors, which represented a 10 ket remains its home of Italy, Sviatlana Hvazdzitskaya, an ex- more widely in Watsons, Angel, “[The reason it’s called Water Gel is percent jump from 2012. now generating 90 percent of port manager for Dermacol. CitySuper and Sasa. because] the ingredients draw water into The number of exhibitors revenue. The Italian brand European brands generally Prices are about 20 to 30 per- the skin,” said Kristine Schmalenberg, rose 9 percent to 2,362 while expanded to Taiwan fi rst and have to pay a premium in Asia, cent higher than in the U.S., but on associate manager of research and de- the exhibition area increased also distributes to Hong Kong, due at least in part because of the par with similar products. When velopment at Johnson & Johnson, who 7 percent to 81,500 square Malaysia and South Korea. added costs from shipping and comparing the brand with most added that this range marks the fi rst time meters. Despite its enormous Though it has been operating duties. Despite this, Dermacol other offerings in the market in Neutrogena is bringing a launch from an- size, the convention cen- in these countries for some aims to keep prices in Asia at a Asia, “it’s a little more premium other country to the U.S. ter was packed; exhibitors time, it has come to Cosmoprof maximum 30 percent higher, she than your average skin care,” said A makeup Furthermore, Shiseido is unveiling looked a bit overwhelmed at for the fi rst time to grow and said. Products are all made in the Claire Robertson of Vitality Brands, display at its Ultimate Sun Protection Cream SPF times. Cosmoprof Asia is the fi nd partners in other ones. and will contin- the distributor for MyChelle. the fair. 50+, $36 for 50 ml., and Ultimate Sun largest cosmetics show in the The skin-care maker is ue to be because “otherwise, we Online sales were also an in- Protection Lotion SPF 50+, $40 for 100 region. Though smaller than GARETH JONES PHOTOS BY also targeting China, but wouldn’t be a Czech brand any- creasingly important part of dis- ml., which is said to resist water upon the one in Bologna, it is larger than Chinese buyers lounge. being cautious because “it has so more,” she said. tribution. Yadah, a fi ve-year-old contact and boost UV protection. the one in Las Vegas. European and American exhib- much potential, but is not easy at Natural skin-care and cosmet- Korean skin-care brand that sells “Some consumers feel that [water- “People didn’t used to have itors said they were looking to ex- the same time. So we have to fi nd ics were a big theme at the ex- in Asia — including South Korea, based] products are not moisturizing these types of products, and pand in fast-growing markets such the right balance,” he said. hibition, with numerous exhibi- Taiwan, Japan and Hong Kong — enough [to be worn on their own] and will now, because they have more as Asia, while Asian exhibitors Another European brand, tors touting all-natural or organic is hoping to expand to more mar- then discover the Asian layering tech- money to spend, the market is said they were looking to expand Dermacol, a cosmetics company ingredients. Among those was kets in the region. Eunmee Anna nique by adding product on top of that,” still scratching at the surface,” their reach in the region, as well. from the Czech Republic, was MyChelle, an American skin-care Kang, chief executive of Yadah, said Bernardin. “That might be the next said Michael Duck, executive Though the financial crisis also at the fair hoping to expand maker that is expanding to Hong said she is “focused on online step for brands in Europe and the U.S.” vice president of UBM Asia, the has slowed sales of cosmetics in its business in China, Vietnam, Kong. The brand is in “beta” shops because youngsters now Come one, come all. show’s organizer. Italy, sales of natural products Malaysia and Indonesia, said mode now, but will be distributed play so much online.” 8 WWD FRIDAY, NOVEMBER 21, 2014

FOR MORE ON BRINKLEY THROUGHOUT HER CAREER, SEE

WWD.com/ Items beauty beauty-industry-news from Brinkley’s

Brinkley to Launch Skin Care line. intended to revitalize skin as well as By JULIE NAUGHTON provide protection from infrared solar rays. “It was very important to me that

OVER THE PAST 40 years, 60-year-old we formulated something that, as much Christie Brinkley has appeared on more as is possible, protected against future than 500 magazine covers, launched her sun damage,” said Brinkley, noting that own fragrance and costume jewelry and broad spectrum UVA and UVB protec- served as the longest-running face — tion are also included. She a very more than 25 years — of Cover Girl. vocal proponent of facial exfolia- Now she’s adding product develop- ’’ tion, which she credits as helping ment to her résumé with a new skin care her skin stay mostly unlined. “Men line. Called Christie Brinkley Authentic shave daily and get that exfoliation Skincare, the eight stockkeeping unit naturally,” she said. “Women need range is, she insists, the reason for her to add that extra step.” largely unlined skin. The Brinkley collection com- Developed with the Atlantic Coast prises Recapture Day + IR Media Group, the line will launch on HSN Defense Anti-Aging Day Cream, and hsn.com in early March, then will roll $69.95 for 1.7 oz.; Recapture 360 out into Kohl’s 1,163 doors later that month. Night Anti-Aging Night Treatment, Anne Martin-Vachon, while serving as 1.7 oz. for $69.95; Complete vice president of global cosmetics and Clarity Daily Facial Exfoliating beauty marketing for Procter & Gamble, Polish, 3 oz. for $22.95; Refocus GEORGE CHINSEE PHOTO BY signed Brinkley to her second deal with Eye + IR Defense Serum Infusion Eye P&G in 2005. Brinkley became the face Treatment, $59.95 for 0.5 oz.; Uplift +

of Age-Defying Liquid Makeup, a foun- ANNA GUNSELMAN PHOTO BY IR Defense Firming Neck & Décolleté and co-chief executive offi cer for the dation line designed with skin care ben- Treatment, 1.7 oz. for $69.95; Close Up Atlantic Coast Media Group, who noted efi ts. “It’s a cliché, but she doesn’t look Instant Wrinkle Smoother & Treatment, Brinkley’s line represents the com- like she’s aged at all since then,” said $69.95 for 0.33 oz.; Close Up + IR pany’s most significant launch in its Martin-Vachon, now chief merchandising Men shave daily and Defense Skin Smoothing Serum, 10-year history. Atlantic Coast also offi cer for HSN. $49.95 for 1 oz., and Complete Clarity owns three other skin care brands, Brinkley admits that with as much get that exfoliation Facial Cleansing Wash $22.95 for 3 oz. Hydroxatone, Miracle Skin Transformer time as she spent in the sun over the Brinkley is a vegan, and insisted that and Luminique, and a hair treatment years, she’s lucky. In 1983, she wrote naturally. Women the collection be both vegan and sensi- line called Keranique. All are sold pri- and illustrated a beauty book, “Christie tive to the environment. Glass packaging marily via home shopping channels and Brinkley’s Outdoor Beauty and Fitness is rendered in turquoise and amber. direct response marketing, added Drew Book,” which topped the New York need to add “As Kohl’s continues to establish it- Surwilo, co-founder and co-ceo of the Times bestseller list. “I was actually tell- self as a beauty destination, Christie Atlantic Coast Media Group. ing people how droplets of water would that extra step. Brinkley Authentic Skincare offers While all declined to discuss sales make them tan faster,” she said with a customers the combination of a recog- projections, industry sources estimated slight grimace. She’s currently at work on — CHRISTIE BRINKLEY nizable and trusted personality with that the line could do upward of $20 mil- another beauty and fi tness book, which results-oriented products,” said Jeff lion at retail in its fi rst year on counter. is expected to be published in 2016 by [Brinkley’s 15-year-old daughter, Sailor Askenas, Kohl’s vice president and divi- Brinkley continues to have her fi n- Grand Central Life & Style Publishing. Brinkley-Cook, is also a model; both are sional merchandise manager of beauty ger in a number of beauty pies. She Martin-Vachon noted that at HSN, she represented by IMG]...She has fi rst-to- for Kohl’s. “Christie’s many roles of launched a wig collection for Hair2Wear looks for three factors in every product market technology in the line, which is a being a mother, entrepreneur, model and in 2013 and her 1998 fragrance, Believe range that is signed: “successful brand, fair trade, eco-friendly line that doesn’t actress provides a strong foundation for by Christie Brinkley, is still being dis- great product and great storyteller.” test on animals. And she is incredibly equipping customers with her skincare tributed internationally. She launched “Very few have all three, but Christie passionate about this line.” secrets through this collection.” a costume jewelry line with HSN-rival does,” said Martin-Vachon. “She has all Brinkley collaborated with dermatolo- “Cost pretty much wasn’t a con- QVC in 2010, and will reprise her role sorts of stories, on everything from her gist Doris Day on the project, incorporat- cern when we were formulating this as Gayle Gergich in NBC’s “Parks and line to her modeling career to her kids ing the proprietary Bio-Copper Complex, line,” said Tom Shipley, co-founder Recreation” in its next and fi nal season.

’’ On set at the ad shoot. Versace’s New Girl: Eros Pour Femme sessed counterpart , who emerg- By CYNTHIA MARTENS es from the water in a fl owing white dress and gladiator sandals, ready to rumba. MILAN — When sparks fl y between a “For me, [Stone] is the dream model man and a woman, she calls the shots. for Eros Pour Femme — she is powerful That’s according to Donatella Versace, and intense, with a strength of charac- whose new eau de parfum, Versace Eros ter that hits you as soon as you look into Pour Femme, is due to hit shelves in her eyes,” said Versace, adding: “Lara December and is expected to surpass its stands for a woman who is giving into 2012 male predecessor in sales. desire, yet is also totally in control and Three perfumers from Firmenich gets what she wants.” — Alberto Morillas, Olivier Cresp and Versace Eros for men has sold an es- Nathalie Lorson — worked jointly on the timated three million bottles so far, ac- new juice. cording to Giovanni Sgariboldi, presi- “Eros is the God of love, but dent of Versace’s licensing partner for the campaign for Eros Pour Euroitalia. Total distribution for Femme, I wanted it to almost the edp is slated at 15,000 doors seem as if Eros himself was worldwide, including 2,500 in the being seduced, such is the U.S., considered a fundamental strength of the woman,” said area for growth. the designer, referring to Versace and Sgariboldi de- “With Eros Pour Femme, we expect sandalwood, ambrox, musk and various the new video and im- clined to discuss sales projec- major results,” stressed Sgariboldi. He woodsy notes. ages shot by Mert Alas tions. But industry sources noted that after the fragrance debuts in The new Eros bottle is rounded, in and Marcus Piggott at estimate that Versace Eros Italy next month, the rollout will pro- clear glass with a mirrored aluminum London’s Pinewood Pour Femme could break ceed across Europe in February and cap, front and details — a departure from Studio, “in the water $200 million in global re- March and in international markets the square and blue men’s version — but tank where also tail sales in its fi rst year throughout 2015. For the men’s scent, the the brand’s Greek key motif and Medusa James Bond’s movies on the market, with as Middle East, U.K., Germany, Russia and symbol remain prominent. Instead of a have been shot.” much as a fi fth of sales Australia were strong sales areas, in ad- box, the perfume will be packaged in a Brian Shimansky, coming from the U.S. dition to Italy and the U.S. small case that pulls open on the side. the face of the men’s In America, it could Top notes include Sicilian lemon, The edp will be available in 30-ml., 50- Eros scent, is back become the top-selling Calabrian bergamot and pomegranate, ml. and 100-ml. versions, retailing in in the campaign, but Versace juice, surpassing with a heart of lemon fl ower, Sambac Europe for 66 euros, 89.50 euros and clearly plays second the Bright Crystal and jasmine absolute, jasmine infusion and 121 euros respectively, or about $82.84, fiddle to his self-pos- Versace Eros Pour Femme Yellow Diamond lines. peony. The drydown is composed of $112.34 and $151.9 at current exchange. WWD FRIDAY, NOVEMBER 21, 2014 9 WWD.COM Donna’s Urban Zen Explorations and a soul behind it.” By MARC KARIMZADEH Donna Karan’s Urban Zen Projects such as these demonstrate Holiday Marketplace. the evolution of Urban Zen, which re- NEW YORK — That Donna Karan en- cently began wholesaling its apparel, joys her travels is no secret. In fact, and Karan’s commitment to the venture. it’s an integral part to her design ethos Asked if she was spending increasingly — one that she is also channeling into more time on Urban Zen, the design- the second edition of the Urban Zen er stressed her commitment to Donna Holiday Marketplace. Karan International. The pop-up shopping concept, which “I care about Urban Zen, it’s a baby,” she tested during the last holiday season, she said. “There are very few of us here. embraces the idea of soulful economy, of- I don’t have the infrastructure here that fering several impressive installations of I have at Donna Karan. I have amazing merch with a humanitarian bent and the people I have trained at Donna Karan goal of making a philanthropic difference. and it’s all there. Here, it’s like being a During a walk-through at her studio child again, starting from scratch and space on Greenwich Street, she called it’s very personal. It’s about clothes that last year’s event “an experiment. Now I I personally want and need, and when I realize that this is how I want to live all am at Donna Karan, it’s an artistic ex- the time. I never want this to come down.” pression that is pure.” In addition to Karan favorites such As for her holiday marketplace mes- as art and furniture by Ilana Goor and sage, she hopes it inspires people to ex- Lauren Bush Lauren’s Feed bags, there are plore the world. “I want them to walk plenty of new lines available in the mar- away and say, ‘I want to go there. I want ket, among them sculptures by Elizabeth to go to Haiti. I want to go to Bali.’ I told Jordan made from laboratory beakers and ERICKSEN KYLE PHOTO BY Calvin [Klein] that I have seen so many cashmere toys, hats, and blankets from which, when attached to the actual iPhone, collective consciousness, people coming amazing things from Papua New Guinea, Norlha in Tibet. There is also a tech-y ele- alters the display screen into a prism. together who want to make a difference I want to go to Papua New Guinea. Now I ment: The App Store from Evan Desmond Karan found many of these vendors on in the world,” said the designer, who be- have seen this fabric from Tibet, I want to Yee is a mock Apple shop-in-shop offering her travels and, as she put it, “My shop- lieves the concept of a soulful economy is go to Tibet.” the Brooklyn artist’s interpretations of the ping. God forbid I should stop shopping.” quickly catching on — “showing the heart And if her holiday wishes come true, iPhone and gadgets for it, including the Proceeds go toward the Urban Zen and soul that goes into a product line, so the marketplace will become permanent- iFlip, an hourglass sand timer fi lled with Foundation as well as some of the arti- it’s not just the same stuff. You just don’t ly installed. “That’s the next step,” Karan crushed iPhones, and the Nocuous Rift, sans’ charitable organizations. “It’s a buy something, it has to have a meaning said with a smile. Cavalli Sale Debate Goes On Farfetch Takes Steps to Double Sales {Continued from page one} has already pocketed a portion of the sum earmarked by VTB like Paris, London, Barcelona, Berlin, Lisbon and and that some form of contract has already been signed. “It’s By RACHEL STRUGATZ Rotterdam with Miami and Dubrovnik coming soon. a very delicate situation, and they have not arrived at a fi nal Neves said that getting users to transact is a decision,” continued the source. FARFETCH wants to reach farther. goal, but so is having them use the app to get them According to another source, VTB is pulling back to negotiate Sales this year for its retailer network are ex- into the actual stores that they’ve been buying from a new price, which Cavalli is reluctant to accept. “The fi nan- pected to hit $325 million, double that of last online. Content includes recommendations from cial investors that were expected to fund the acquisition did not year, when they clocked in at just over $160 mil- boutique owners worldwide as well as detailed come through, and the Italian banks that were supposed to pitch lion. While the fi rm wouldn’t discuss its revenues, travel itineraries by city penned by everyone from in were cut off,” said the source, referring to the internation- Farfetch is said to take a 25 percent commission Fivestory owner Claire Distenfeld to Sharmadean al sanctions on Moscow for its role in the Ukraine crisis. VTB from retail partners, meaning it could have reve- Reid, founder of WAH Nails. Capital is part of VTB Group, a major Russian investment bank, nues of about $80 million in 2014. Farfetch is also joining the click and collect but it’s understood that it is acting for a Cyprus-based fund. To further fuel its growth, Farfetch is expanding club. Neves contends that the company has been “This, on top of a lackluster performance of the brand,” into more regions. The online marketplace, which omnichannel since its inception in 2007, saying, added the source, noting that VTB is trying to recast the deal now boasts 300 boutiques spanning 23 countries, “Our inventory sits in a physical store and we have to avoid paying legal penalties. has just opened its fi rst Asian offi ce in Tokyo. The The deal was expected to be completed in mid-October and majority of boutiques are situated in Europe and then pushed back to November. As reported, the Italian design- the United States, with the biggest growth mar- An image from er has signed a letter of intent to sell a 60 percent stake in his kets including China, Japan, the Middle East and “Farfetch Workshop.” company to VTB, with the eventual goal of launching an initial Australia. Farfetch raised $66 million in Series D public offering in four to fi ve years, according to sources. funding in May, bringing the total amount raised to The price tag was pegged at 500 million euros, or $626.7 over $100 million. million at current exchange. The deal values the Cavalli brand Three localized versions of the site launched at 830 million euros, or $1.04 billion. This amount represents this year: Russian in July, Japanese in August and four times the fi rm’s sales in 2013 and more than 22 times its Mandarin last month. This isn’t limited to a transla- earnings before interest, taxes, depreciation and amortiza- tion of the English Web site, according to Farfetch tion last year. In 2013, the Florence-based fi rm reported sales chief marketing offi cer Stephanie Horton. There of 201 million euros, or $265.3 million at average exchange, is corresponding currency, logistics and shipping, up 9.3 percent compared with the previous year. Net profi t local payment systems, marketing and customer last year dropped to 159,000 euros, or $209,880 at average ex- service tailored for each local destination. change, from 359,000 euros, or $459,520, in 2012. EBITDA last Japan is the only one of the three where Farfetch year totaled 22.4 million euros, or $29.5 million. The company opened an offi ce, as adding more boutiques in the has not reported results for the fi rst half of 2014. country is a key focus for 2015. There are no plans At the end of 2012, the company had 179 stores, of which 90 to put offi ces in China or Russia, but the company were under the designer’s signature brand. Of these, 44 are di- is looking at Australia as a possible supply market. rectly owned, including Cavalli’s prestigious Rue du Faubourg “We actually have a team there now investigat- a unifi ed view of inventory [online]. That’s the most Saint-Honoré boutique. If the designer retains ownership of ing the landscape and seeing what type of stores we diffi cult trick that retailers try to pull.” The ability the Paris shop, as is rumored, the deal’s fi nal price may even- want to sign. I would estimate [signing] fi ve to 10 to pick up in-store is the next step. tually be clipped. in the fi rst year but that number is loose based on The site’s new in-store feature that rolled out on The value of the company has been a thorny issue for years, recon the team fi nds when they do their due dili- Nov. 17 allows consumers to buy online and then col- and the designer is said to have backed out of previous nego- gence,” Horton said. lect from any of the 100 retailers participating. To tiations over price. A deal to sell a 30 percent stake to private In October, Tokyo’s Restir boutique won cater to a consumer who travels during the holiday equity fi rm Clessidra SGR SpA broke down in 2009 for that Farfetch’s Superstore 2014 competition, beating season, it’s now seamless to purchase items from a reason. At the time, sources said Cavalli was looking to sell out fi ve other shops in Dubai, Mexico City, Seoul, boutique in a city they are going to visit and pick it for 1 billion euros, or $1.25 billion. Talks with private equity Shanghai and Cape Town to become the fi rst Asian up when they arrive. For local customers, it might get fund Permira cooled earlier this year, possibly triggering the boutique on the site. them visiting a store they might not have otherwise. sudden departure in January of Cavalli chief executive offi cer But going to the site and buying is only part of Farfetch has tapped Mindy Kaling to participate Gianluca Brozzetti and chief operating offi cer Carlo Di Biagio. the experience. Chief executive offi cer José Neves in its holiday campaign that launched earlier this In 2006, Cavalli seemed close to a deal with Saudi Arabian acknowledged that the physical part is still integral month and will run through mid-December. The private equity fund SAB Capital, which submitted a bid for 60 to shopping, and the team made a concerted effort program, “A Farfetch Fairytale,” will unfold over six percent of his business, but the designer pulled out of the talks. to roll out omnichannel experiences to drive foot weeks. A different chapter will publish each week — During this round of negotiations, Permira was willing to pay traffi c into partner boutiques. from “Once Upon a Time” to “Farfetch Workshop” — 450 million euros, or $591 million, for the group, sources said In September, Farfetch introduced its fi rst app, as well as corresponding gift guides. Kaling penned — a price tag Cavalli rejected. Permira recently made an offer Farfetch Discover, which, in addition to allowing the words for half a dozen fairytale-themed e-cards for the entire company, but an agreement was never reached consumers to purchase, serves as a tour guide of with animated gifs. A card featuring Rapunzel reads, because VTB outbid the Italian fund. Bahrain-based Investcorp, sorts for many of the cities where partners are lo- “Shhh they’re extensions but he doesn’t need to the former owner of Gucci and Saks Fifth Avenue, was also said cated. The app has had about 50,000 downloads know that,” and one with Red Riding Hood says, “It’s to be looking at Cavalli in the latest round of sale negotiations. to date and has detailed city guides for places a red capelet, not a cape, get it right, Mr. Wolf.” 10 WWD FRIDAY, NOVEMBER 21, 2014

pay their respects. Jeff Koons and “I’ll miss it for Julian Schnabel nostalgic reasons, for the exhibitions I was in,” said Fred Wilson, whose eye work has been featured in some of the museum’s most provocative exhibits, including the 1993 Biennial and the 1994 “Black Male” exhibit, which opened amid national debates about race in the aftermath of the Rodney King and O.J. Simpson controversies. Wilson created four headless black mannequins that were initially sold to another museum but Elvis Costello Swan Song are now back in the permanent collection. Wednesday was also something of Wes Gordon and THE WALLS were barren. The Koons The gala was not the last a homecoming for Brett Heyman sculptures had been wheeled out. The chapter in the story of one of the Thelma Golden, the 48-year-old building on Madison Avenue grande dames of the Upper East director of the was finally empty. “Somebody put out Side — the Whitney is leasing Studio Museum in the big light,” Elvis Costello sang from the the space to the Metropolitan Harlem. It was third floor. Museum of Art — but it was 20 years to the It was the Whitney Museum’s last the beginning of its settling day since, as an dance at the historic Marcel Breuer down for a long winter’s nap. up-and-coming building. On May 1 of next year, the And it’s only middle-aged. curator, she museum will relocate with much fanfare “It’s the end of a very had opened the to the Meatpacking District on New important era,” said “Black Male” York’s bustling West Side, not too far David Lauren. exhibit on this from the High Line and Pier 54, where The only parts of the very fl oor. Barry Diller has bold plans to build a new austere Brutalist building “For me, state-of-the-art park. that remained in use were that exhibition the fourth fl oor, the site resonates because of an after party that was I was a very

decked out with decorative young curator STEVE EICHNER ALL OTHER PHOTOS BY ANDREW H. WALKER/GETTY IMAGES FOR WHITNEY MUSEUM OF AMERICAN RILEY ART; KEOUGH PHOTO BY empty crates — get it? with incredible They’re moving — and the ambition for what I thought could the museum’s good ol’ bad-boy days, like third fl oor, where a gala happen in the art world,” she said. when, during a Biennial, the artist Rirkrit dinner, presented by Louis Some of the people in the room Tiravanija installed a replica of his gallery Vuitton, was served beneath remembered the fi rst time their work that featured music so loud, the power dozens of Chinese lanterns was displayed at the museum. was shut off. Could the same thing inscribed with the names of all 98 “The fi rst time I had a painting at the happen at the new location? living artists who have had survey Whitney was in 1974,” said Julian Schnabel. “I “It looks like a prison on Mars,” exhibits at the Whitney. thought it was a big deal at the time.” That Brown said of the soon-to-be-unveiled Some of them — Cindy Sherman, was back when he wasn’t married to his Renzo Piano building. Jeff Koons, Kara Walker, Chuck fi rst wife, Jacqueline Beaurang. Several wives Wilson, as a trustee, saw things Close — had come out of the and girlfriends later, the artist was now differently. “This is still going to be a woodwork, like long-lost with his latest conquest, Tatiana Lissa. museum,” he said. “That’s one thing I’m Fred Wilson relatives making the trip for Riley Keough in The gallerist Gavin Brown glad about. It’s not going to be a Barneys.” one last big family reunion, to . preferred to reminisce about — ERIK MAZA

Melania and Donald Peter Dundas with Trump with Kris Jenner in in Donna Karan. Emilio Pucci.

FOR MORE PHOTOS, SEE WWD.com/eye. Jacquelyn Jablonski in Valentino. PHOTOS BY AMBER DE VOS PHOTOS BY

Liya Kebede, Valentino Garavani out of everything. I’ve learned than others. That’s what I’ve and John Leguizamo, nodded in a lot from Kourtney. She’s found.” Regardless, the model recognition. Yes, they’d heard of taught me a thing or two.” had fi gured out a simple, yet those six “amazing” kids. Throughout the evening, crucial equation: Thanksgiving Talking Trash When Martin said during which included performances feasting plus Victoria’s Secret THE WORDS “Kardashian” and “As you know, I’m a mom and her acceptance speech, “The by pianist Lola Astanova and Fashion Show equals bad news. “economics” are not typically a manager to my six amazing youth is our future,” Jenner R&B singer Craig David (best, “Normally, the show is before uttered in the same breath, but, kids, and one of the things was off in the distance, smiling and perhaps only, known for Thanksgiving,” she said. “I’ll hey — isn’t that what makes I’ve taught them from a very knowingly. What would she do his 2000 hit “Fill Me In”), have a little bit of everything, New York nightlife so great? early age is to dream big and if not for Kendall and Kylie? guests assessed their own like I always do, just not to the Still, when Kris Jenner was named work hard,” Jenner said by Later on, the reality-show mathematical prowess.“I have extent that I normally would. emcee of the New York Ball, the way of introduction, a vague matriarch admitted it was her to be [good at economics],” Zac I’ll have some pie. Whatever.” 20th Anniversary Benefit for the explanation for her attendance. eldest daughter, Kourtney, who Posen boasted. “As a designer Of course, no one thinks he’s European School of Economics, The crowd, which included displayed the most economic running your own business, you better informed about economics held at the Trump Tower on honorees Franca Sozzani, Steven prowess out of the extended have to understand.” Jacquelyn and fi nance than Donald Trump, Wednesday, it raised more Klein, Baz Luhrmann and Catherine Kardashian-Jenner clan. Jablonski opted for an indirect who, along with wife Melania, than a few eyebrows. It was not Martin, and Coco Rocha and Patrick “She’s so smart,” Jenner said. answer: “I have a side of me…” traipsed through the room like, exactly “Keeping Up With the Park, as well as Peter Dundas, “She’s a ballbuster. I mean, she said. “It depends. You know, well, he owned the place. Kardashians” fodder. Natasha Poly, Daria Strokous, Kourtney can negotiate the s--t you’re better at certain areas — LAUREN MCCARTHY WWD FRIDAY, NOVEMBER 21, 2014 11 WWD.COM

and laugh at the funny clothes. It’s like we don’t know whether Matthew Brady was a Mike Nichols in His Own Words good photographer or not because all we have are his photos of the Civil War. MIKE NICHOLS, one of the best-known season, and Nichols and WWD intersect- is fi lled with secrets...you feel them work- “Everyone is infl uenced by everything. film and theater directors in the world, ed from time to time over the years. ing if a picture is any good. The infl uence is not what a stranger as- died on Wednesday of cardiac arrest at — LORNA KOSKI “I hated making ‘The Graduate’....It was cribes to the work in looking at it. age 83. A brilliant, witty and multifac- very scary, the hardest thing I ever did. “Critics are largely eunuchs describ- eted man who was born in Berlin and Giving a talk at Brandeis University in 1968, The best time is afterwards, in the cutting ing a gang bang.”— WWD, Feb. 14, 1968 whose family fled the Nazis, Nichols’ ca- when he directed Neil Simon’s “Plaza Suite” on room — you and the cutter having a good reer lasted from its 1955 launch, as part Broadway. (He refused to do interviews at the time.) time together. The pressure is off.” At the time he made the 1971 fi lm “Carnal of the satiric comedy team Nichols and “Rehearsals for the theater I enjoy al- “People compare the methods I used Knowledge,” which starred Jack Nicholson, Ann- May — with Elaine May, whom he met most more than anything. I can sit there [in ‘The Graduate’] to other directors. I Margret, Candice Bergen and Art Garfunkel, he through friends while at the University and laugh and let the actors perform and have not derived, but stolen, from other spoke to the Eye. of Chicago — to the 2012 Broadway pro- say, ‘That’s great. Do that some more.’ directors and will continue to do so, but “Nobody never misses.” duction of Arthur Miller’s “Death of a Rehearsal is a joy because the actor can you can’t recognize it. I stole from George “I don’t know that you ever get to the Salesman,” starring Philip Seymour amaze you….You, as [a] director, can only Stevens deliberately and consciously and point where you don’t worry about artis- Hoffman in the title role and for which make an atmosphere where the actors will continue to do it. But by the time I’m tic failures. But if you have enough com- the director received a Tony, adding to breathe — if the actors are good. fi nished, it becomes something else. mercial failures, you don’t get to make the other eight he already had. “Being [a] director, for me, is not working “A movie becomes a social document, a any more movies.” The first play he directed, Neil with established or non-established stars. thing more than itself. You make a movie “I understand they’re having trouble Simon’s 1963 “Barefoot in the Park,” pro- The division is actors or nonactors. Miss now, and in 20 years, people will look at it with the title in Buffalo.” vided him with his fi rst of those awards, [Maureen] Stapleton and Mr. [George C.] On the R rating: “The point is, how while the fi rst fi lm he helmed was the Scott [who appeared in “Plaza Suite”] are do two guys talk? What is life really like? 1966 Elizabeth Taylor-Richard Burton extraordinary actors, but most people can’t ‘Carnal Knowledge’ is about missing the version of Edward Albee’s “Who’s Afraid act...so you can only make do with what you best possibilities in life by considering of Virginia Woolf?” which won five have — on fi lm...but on the stage, never. women as objects.” — WWD, June 18, 1971 Oscars, although not one for him. He did “The job of director is to discuss get a directing Oscar for his next movie, what’s happening, that it’s not just being On traveling with Sawyer, his third wife, in his 1988 1967’s “The Graduate,” starring Dustin said. He must discuss an event, either gray BMW from Manhattan to California: Hoffman and Anne Bancroft. make it or let it happen. Onstage, you try “I always wanted to have someone I Though he wasn’t a dedicated follow- to make things physical. could be in a car with for a month. My fan- er of fashion, he and his wife, ABC news- “In fi lms, if the director doesn’t leave tasy is just me and my baby. I love this coun- caster Diane Sawyer, were friends with anything unsaid, it’s a lousy picture. try, and I want to see all the things I haven’t Diane von Furstenberg and appeared in They’re implicit things. A picture is good seen before, like the Grand Canyon, which the front row of the designer’s show each to the extent it’s implicit. Any good movie I’ve only seen from above, and Hoover Dam. We’ll take along some hard-boiled eggs, fried chicken, sleeping bags, under- that the principle holds true for the wear, T-shirts and jeans and one suit each magazine industry. “If you do something for places like New Orleans and going out MEMO PAD good, it appeals across all age brackets.” to dinner. We’ll stay in motels along the way Asked about trends that he has and see friends in Wyoming. It reminds me SCHRAGER TALKS DESIGN: How things noticed across industries, Schrager of hitchhiking home to New York from the have changed for Ian Schrager, the enfant said, “The fashion business is under University of Chicago. When I’d fi nally get terrible of the hotel industry who came siege. It’s not doing well. It’s been taken Mike Nichols to Pennsylvania, I’d start to cry.” to fame in the Seventies as cofounder over by the J.Los and the Miley Cyruses in 1971. — W (then sister publication to WWD),

and co-owner of Studio 54. Sitting on a of the world.” — ALEXANDRA STEIGRAD SAL TRAINA PHOTO BY April 17, 1989 small dais with Marriott chief executive officer Arne Sorenson in a conference NEW RECRUIT: BlackBook is relaunching room on the 44th floor of Hearst Tower, its print magazine biannually and Schrager talked about his partnership has tapped Anne Christensen as fashion with the massive hotel company. He has director at large. Christensen last teamed up with Marriott to form the worked, most notably, at Glamour as Edition Hotel brand, and next year, the executive fashion director from 2010 pair will open the doors of the brand’s to 2013. She resigned once Condé Nast first Manhattan-based hotel, located in artistic director Anna Wintour began the Clocktower in Chelsea. consulting on the magazine. The melding of design and scale Christensen, who has consulted on a seems like a no-brainer, but Elle Decor few projects, signed on with BlackBook, editor in chief Michael Boodro, who the fi rst and second issues of which moderated the discussion, remarked will come out in March and September, on the irony. “How do you say, ‘I want respectively. “This is going to be a to start working with this man who has creative endeavor, full of possibilities,” undermined big hotel chains?’ ” he Christensen said. asked Sorenson. After all, this was the The magazine was last printed under same Schrager who has been credited its previous owner, Vibe Media, in with creating the boutique hotel. summer 2013. That fall, Evanly Schindler, Sorenson also remarked on the the founder and editorial and creative irony, recounting his fi rst encounter director of BlackBook, partnered with with Schrager at a Goldman Sachs Jon Bond, cofounder of advertising conference years earlier. The ceo agency Kirshenbaum Bond Senecal + caught the tail end of Schrager’s Partners, to purchase the magazine. presentation. “He said, ‘I stand For the past year and a half, the for everything the opposite of the company has focused on its digital effort, Marriott,’ ” noted Sorenson. building traffi c of 1.5 million unique With time, Sorenson won Schrager visitors a month, it claims. Hunter Hill serves REACH THE over, or perhaps Schrager was just as the publisher, and Jacob Brown is the ready for a new challenge.“I wasn’t editor in chief. They will launch the print some reluctant person,” he offered, edition in the spring with a circulation of FASHION INDUSTRY’S explaining that he wanted to make his 100,000 in the U.S. and internationally. hotels and designs more accessible. The March issue, which will cost $10 on Boodro joked that Hearst’s T&E the newsstand, is more than 200 pages with TOP TALENT budget didn’t afford him the luxury of between 30 and 40 ad pages. According staying at some of Schrager’s or the to Brown, the magazine will have a new Marriott’s higher-end hotels. The editor design and logo, and its content will be then asked how Schrager’s design “reformulated,” meaning it will be less philosophy has evolved. “I don’t want newsy and trend-driven and focus more on to walk through a nightclub,” he said, culture via essays by “engaging authors,” referring to lobbies at trendy hotels fashion editorial and visuals. — again, a 180-degree switch from the The team will bring back photo lobbies he put in hotels such as The director Judith Puckett-Rinella, who Royalton or St. Martins Lane in London. worked on the original BlackBook. It “That’s a thing of the past. People won’t also will bring back editor Aaron Hicklin tolerate it anymore.” — editor in chief of Grand Editorial and He added, “There’s a backlash publisher of Out and The Advocate — as with overzealous design.” While Brown’s co-editor. BlackBook will use acknowledging he played a part in that staff, such as managing editors and copy trend, Schrager noted that it has been editors, from Grand Editorial. WWDCAREERS.COM exploited in order to attract Millennial In a sign of the times, the spring PRINT & ONLINE PACKAGES AVAILABLE customers. “The notion of appealing to relaunch is being “sponsored” by Hewlett- Contact Christen Cosmas, WWD Classifi ed/Careers Millennials and ignoring Boomers is Packard and its Sprout technology. at 212.630.3937 or [email protected] a big mistake,” Schrager said, adding — A.S. 12 WWD friday, november 21, 2014 WWD.COM

WWD: Things are changing Vogue Italia’s Franca Sozzani in Milan. There is also the new Porta Nuova area, F.S.: I write my blog each day There are already computers, where Vogue itself has held By LUISA ZARGANI [on vogue.it]. Social media are telephones, etc. After years events and shows will take fundamental to communicate of quantity, there will be a place. MILAN — It’s not easy to and understand what happens recovery of quality, there will be F.S.: Yes, Milan is showing keep up with Franca Sozzani. in the world. It’s a point of view a watershed. All you do to bring a new and different face. Her rapid-fire repartees and and an immediate commentary. awareness is good, but you need At Porta Nuova, too, when quick wit mirror her role as What worries me is that now, credibility and quality. they started construction, Vogue Italia editor in chief communication is virtual. As everyone was up in arms, and humanitarian — her for Instagram, I follow about WWD: What media do you favor? saying Milan was going to appointments as Goodwill 100 people, but I am not Do you watch television? lose its character. But what Ambassador for Fashion interested in what a designer F.S.: I don’t have time, I watch is Milan’s character? Let’s 4 Development and U.N. is doing or what a friend of a movies, or shows people are not be closed in by our Ambassador Against Hunger friend is doing. I upload my talking about. Television is provincialism. display those efforts. photos on Instagram. the medium I use the least; I’d Her latest endeavor is the rather use my computer, iPhone WWD: Speaking of Milan, design of an apartment and WWD: Magazines are finding or iPad. what do you think of the five- all its interiors in Zurich, at the their bearings as they compete day fashion week held in m Hard Turm Park complex as with the advance of digital WWD: Do you read on paper or September? part of the “Design Scouting media and communication. Kindle? F.S.: We lack an organization he Dubai Talents” project. Sozzani’s fee What is your opinion on this F.S.: Paper books. Also the light that will support fashion t

will go toward a scholarship in subject? of the screen annoys me. week. The five- ue & support of new talent in design F.S.: There’s been a selection. day week shows a G and architecture — always a What happened was caused WWD: How do you feel about lack of vision and

priority for the editor, whose by the Internet, but it hit more foreign investments in Italian that we are not es for Vo blue eyes brighten when functional magazines, weeklies fashion? able to command G ma discussing young creative or dailies. [Helping you on ] F.S.: I am very favorable to the respect. I am not i minds. Her magazine has been how to wear makeup, where to Bourse, to a sale, to what is saying it’s anyone’s supporting the Who’s On Next go, that has lost its value. You useful to grow, maintaining jobs, fault in particular, it’s our talent search in Milan for years, just click and you get 18,000 the Made in Italy. It doesn’t make fault. We have the highest . Whitby/Getty among other initiatives, and screen shots on how to apply any sense and it’s parochial to concentration of brands, p im Sozzani grows animated talking lipstick, for example, but there think otherwise. Investors can how can we accommodate t about new photographers will be the same selection that be French, Russian, as long as everyone in four or five discovered through Vogue has taken place in paper in they help a business grow. I don’t days? In New York there Italia’s Web site. digital, too. [Italian magazines understand “The Little World of are between four and six big photo by Here, Sozzani talks about A or Myself] did not close the Past” [a reference to the title designers, and the shows last interesting. I am satisfied, but talent, magazines and more. because they were not good, of the book by Antonio Fogazzaro] one week. There is something it’s important never to stop. but because they lost their that is destined to die. wrong here. It’s our fault. We WWD: How has the visual value. They’ve been replaced can’t stand up for it. They WWD: You are also engaged element evolved since you first by the Web. Vogue is not a WWD: In February, you take our ads, don’t they? Why with several humanitarian started at Vogue Italia and how practical magazine, it provides expressed pleasure at the don’t they want to stay longer activities. important is it compared to the sensations, feeling, moods, you arrival on the scene of prime in Milan? Why do we have to F.S.: Yes, it all happened by written word? like the photos. minister Matteo Renzi. Some comply? We have the most chance, on a trip. I was doing Franca Sozzani: It’s gone from 40 to You can look up “heart” and of his views and beautiful brands, the Black Issue in 2006 and For THE Full 100 percent. Think of Instagram. get 100,000 voices, but slowly strategies have been inTErviEw, sEE they are Italians. then went to Africa for Uomo Journalism will continue to the ones at the end are no criticized of late. Vogue. I’ve worked with exist, but communication is longer credible, so there will Have you changed WWD.com/ WWD: A number Gucci and Fendi, committed now visual. This is a choice I be a selection in Web sites, too. your mind? media-news. of executives to create jobs. Fifty percent made 26 years ago when I joined Credibility is a must. Think of F.S.: I am a great had taken it of those ads went to non- the magazine. Vogue was in all those bloggers that kill us supporter of Renzi, upon themselves government organizations in Italian but I wanted to speak to with photos outside the shows he is young, he knows how to to improve fashion week, Africa. [Nelson] Mandela was everyone so I thought of creating — there will be a selection communicate, he’s our great including Prada’s Patrizio on the cover, it helped create images that were made to talk. there, too. Not because some hope. I say let him work. He Bertelli or Gildo Zegna, for attention. I started entering Today it’s normal. Photos used to are less good, but those that took over a country that was in example. in a series of problems I had be a support to the text, but we do not impose a style will have disarray, not florid. And not the F.S.: Yes, but they are never occupied myself with — turned things around, reducing fewer requests. Instagram has other way around. individuals who are superbusy, water, production, employment. the words to a minimum. When been around for what, maybe traveling all the time. You can’t I am learning. You can do so we launched our site around a couple of years? Already WWD: Milan is gearing up think they will have the time to many things. However, I don’t five years ago, I had already it has shut down some small for the Expo next year and attend all the meetings. It was a feel guilty for living well here. started this process on paper. We blogs — it’s a collector of others the fashion industry is also great sign, though. Fashion has always been are now building an enormous and those most followed. It’s preparing for this event. How very generous. Think of what portfolio of photos, we’ve already a selection. I imagine do you feel about it all? WWD: Fashion’s Night Out it has done for curing AIDS. uploaded two million photos this further selection will take F.S.: I think very highly of in September was held the The challenge is to grow local and we have three people that place in the next two years. It’s Expo and all is going well. evening before the first day of economies in those countries. review them. We’ve created a going to be very fast. We’ve seen big problems with the shows. You have decided There are designers there, we community and these images [corruption] scandals [at to continue to hold this event, have to think of production, will live on with exhibitions, WWD: What do you think of local government level], but while others haven’t. but I am not changing Africa. postcards, projections. We brand extensions? Would they it is going forward, with the F.S.: It’s only one city that hasn’t But if we all do something help them gain more exposure. work for Vogue Italia? highest number of participants [New York]. I try to renew together….We have to know our Instagram already works as a F.S.: I don’t see this happening ever expected. The pre-sale and create something new limits, I don’t have the pretense selection. It’s my curiosity into in Italy very much, it’s difficult. of tickets is much superior every time. You can get tired I can change the world. And I the world of youth, what they do, It depends on the value of to what was expected. The of anything, everything turns don’t want to set up events [to what they buy. the brand, there are many problems have been unveiled. old, but I want to give people raise money]. Because what magazines and only a few It’s not as in other countries the possibility to share a Vogue happens if the following year WWD: How do you view the brands. But you can’t think where maybe at the last party. It is up to the brands to they don’t have an event, they flurry of digital activity today? people have that much time. minute, banks go down. participate to make the event won’t eat?

and accessories collections, along with since he has shot most of Burberry’s ad designs that run across the seasons, such campaigns stretching back to former as its skull scarves, Heroine day bag and ceo Rose Marie Bravo, who hired Bailey. Fashion scoops Knuckle Box clutches. — NINA JONES Beforehand, Bailey seemed only slightly nervous, saying, “It’ll be fun to BURBERRY TALKS THE For morE get up there with my mate,” and FRENCH CONNECTION: Internet veteran could not be reached for comment at WALK: Talk about product scoops, sEE joked about wanting to watch the Pascal Cagni, former general manager press time. — SAMANTHA CONTI placement: standing atop ceremony from the store’s rooftop and vice president of Apple Europe, a beige 3-D Burberry plaid WWD.com deck across the street, where several Middle East and Africa (EMEA), has MCQUEEN IN PARIS: Alexander McQueen stage that offered a head-on staffers gathered to record the scene been working at Net-a-porter Group is set to open in its first standalone store view of the company’s new for posterity. Onstage, he noted that in London in a consultancy capacity, in Paris next summer, an 8,100-square- four-story flagship across the street, the the company, almost 160 years old, has sold and could be a candidate for the role foot space at 372 Rue Saint-Honoré. company’s chief creative officer and chief in Los Angeles since the Twenties. of chief executive officer, according The store will showcase the new retail executive officer Christopher Bailey accepted At the store cocktail party afterwards, to industry sources. The company has concept conceived by Alexander the Rodeo Drive Committee’s 22nd Walk of Gela Nash-Taylor and John Taylor and Rachel been hunting for a ceo since the group’s McQueen’s creative director Sarah Burton, Style award on Wednesday from its fourth Zoe and Rodger Berman came to celebrate. long-standing chief executive officer and realized together with David Collins recipient, . “I’ve been working “I just saw all of these guys in England at Mark Sebba retired earlier this year. Studio, the London-based interiors for this company 16 years, and humanly Mario’s birthday, and then at Yasmin LeBon’s Sebba remains a non-executive director design and architecture firm. The store they are an amazing company,” said the birthday,” said Nash-Taylor, “It’s been a at Net. A Net-a-porter spokesperson will carry the label’s runway, commercial photographer, who clearly is unbiased fun few weeks.” — MARCY MEDINA