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To the Limit Here Today, Gone Tomorrow — That’S the Principle MAC Cosmetics and Michael Kors Beauty Are Following with Their New Limited Edition Scents

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To the Limit Here Today, Gone Tomorrow — That’S the Principle MAC Cosmetics and Michael Kors Beauty Are Following with Their New Limited Edition Scents SIMMONS EXITS PHAT FASHIONS/2 DRUG CHAINS TRIM BEAUTY/8 Women’sWWD Wear Daily • The Retailers’FRIDAY Daily Newspaper • August 24, 2007 • $2.00 Beauty To the Limit Here today, gone tomorrow — that’s the principle MAC Cosmetics and Michael Kors Beauty are following with their new limited edition scents. Intended to play hard to get with consumers, MAC’s Air of Style and Michael Kors Island Capri will both launch in November. For more, see page 7. Good News at Gap: Retailer Sees First Profit Gain in Two Years By David Moin Thursday the company he’s for the year, Murphy promised lenn Murphy is getting off on charged with turning around to “unleash and reward Gthe right foot. revealed its first quarterly creativity” and said he’s been While the new Gap Inc. chairman earnings increase in two years telling employees “the size of and chief executive officer, who — even as the group continues to the challenge we have before started at the beginning of August, struggle on the sales side. us is easily surpassed by the can’t take any of the credit, on And as Gap upped its forecast See Gap, Page 11 PHOTO BY GEORGE CHINSEE; STYLED BY DANILO MATZ DANILO GEORGE CHINSEE; STYLED BY PHOTO BY 2 WWD, FRIDAY, AUGUST 24, 2007 WWD.COM Simmons Exits Phat Fashions By Julee Greenberg Russell Simmons WWDFRIDAY NEW YORK — Russell Simmons has called it a Beauty day at Phat Fashions, the company he founded 15 years ago. Simmons has stepped down as chief execu- GENERAL tive offi cer of the fi rm, which has been owned by Aggressive cost cutting and restructuring helped Gap achieve a 19 Kellwood Co. since 2004. 1 percent increase to $152 million in second-quarter earnings. He said in a statement that he has left Phat Russell Simmons has stepped down as chief executive offi cer of the Fashions to develop his other business ventures Phat Fashions. in the jewelry, fragrance, personal health and en- 2 tertainment industries. However, Simmons isn’t Lauren Conrad, star of MTV’s “The Hills” will launch her own contemporary completely exiting the apparel business. He will 4 sportswear line with the fi nancial backing of the network. maintain full control of the new Russell Simmons Earnings fell at New York & Co. Inc. and Stein Mart Inc., while Stage Argyle Culture men’s wear brand, which is launch- Stores Inc. and Buckle Inc. had standout second-quarter performances. ing at retail in the fall. In addition, Simmons will 5 continue to lead his Atman brand, a high-end Diesel is using the Internet to catapult itself into the fragrance business, men’s wear line and also the title of one of his fra- 6 with an aggressive launch campaign for its fi rst masterbrand of scents. grances. Those two brands are considered part of Limited edition fragrances have become “must-have” items, evidenced by the Phat Fashions empire, but will become part of the fall launches of Island Capri by Michael Kors and Air of Style by MAC. Simmons’ own trademark properties. Simmons, 7 who runs Rush Communications, a multifaceted Following the lead of big-box competitors, drugstores are formulating entertainment and apparel company, plans to keep 8 plans to scale back inventory and trim their beauty products. his current offi ce at 512 Seventh Avenue. Classifi ed Advertisements.............................................................15 Simmons could not be reached for comment on Thursday. In a statement, he said: “There are so To e-mail reporters and editors at WWD, the address is fi rstname. many things I want to achieve, and this is the ap- [email protected], using the individual’s name. propriate moment for me to move on to my next business venture.” WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT A spokeswoman for Kellwood said Simmons ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. will not be replaced by a new ceo. Bernt Ullmann, VOLUME 194, NO. 41. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January and November, two additional issues in March, May, June, August and December, and three president of Phat Fashions, will continue to lead additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance all brands. Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by In a related move, Kellwood has extended its Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive partnership with Longstreet Industries, an appar- Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail el manufacturing fi rm based here, to design and Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return market the Phat Farm and new XV men’s brands. undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: The company already produces the Baby Phat and SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA Phat Farm swimwear and Phat Farm big and tall 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit sportswear lines under license agreements. www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new Simmons sold his Phat Fashions empire to Kellwood in a cash deal for $140 million in January 2004. subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production As part of the agreement, Simmons stayed on as ceo and his now estranged wife, Kimora Lee Simmons, correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, remained as creative director of the Baby Phat brand. She will continue as Baby Phat’s creative head. please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list Phat Fashions produces men’s, women’s and children’s sportswear, accessories, footwear, home and available to carefully screened companies that offer products and services that we believe would interest our readers. loungewear. Its portfolio of brands includes Baby Phat, Baby Phat Girlz, Phat Farm, Phat Farm Boys If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA and XV. Phat Fashions has 30 domestic and eight international licenses covering 38 product categories. 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, There are 13 freestanding Phat fl agships globally operated under license. OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY Isetan, Mitsukoshi Join Forces A SELF-ADDRESSED STAMPED ENVELOPE. By Tsukasa Furukawa Quote of the Week TOKYO — Isetan Co. Ltd. and Mitsukoshi Ltd. said Thursday they have agreed to merge and form a new holding company in April. The agreement is subject to approval at a shareholders’ meeting of They still look like bad girls, but bad each company in November. The combination will create Japan’s biggest girls“ in demure clothing, which is much department store group with total sales of 1.58 trillion yen, or $13.9 billion at current exchange. better for their mystique. It will surpass J. Front Retailing Co., which is ’’ being formed next month through the integration — Simon Doonan, Barneys New York creative director, on of Daimaru and Matsuzakaya and will have total sales of 1.17 trillion yen, or $10.3 billion. what celebrity defendants wear in court. Isetan and Mitsukoshi will merge to form the company Isetan Mitsukoshi Holdings Ltd., at the stock transfer ratio of one new share for one ex- isting Isetan share and 0.34 new share for one existing Mitsukoshi share. This is after the con- In Brief sideration of share prices of both companies in the last three months and other factors, the com- panies explained. ● IN THE BAG: The European Commission has given the green Isetan and Mitsukoshi, in explaining the back- light for CVC Capital Partners to acquire Samsonite Corp. Last ground and purpose of their integration, said month, the private equity fi rm said it would pay about $1.7 bil- department stores in Japan are confronted with lion, or $1.49 a share, for the luggage and travel accessories a shrinking market because of an ageing and de- company. At the time, CVC said it planned to continue moving clining population. They also are facing greater the brand upmarket and expand Samsonite in high-growth Asia competition from other retail channels, including before contemplating an IPO at a later date. general merchandise stores, drugstores, large- scale discount stores and convenience stores. The combination of Isetan and Mitsukoshi will create ● STARS AND DOLLS: The Olsen twins plan to create an ex- The merger, the companies said, will enable Japan’s biggest department store group.
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