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. clusive line of virtual clothes and accessories for the more them to combine their resources, ranging from than nine million members of Stardoll, the virtual world for information systems and technology to procure- of 1.49 trillion yen, or $13 billion, in third place, tweens, to buy and wear, Stardoll said Thursday. But that’s not ment, merchandising and marketing know-how. followed by Millennium Retailing Co., which was all: The twins will interact with fans on the Web site’s “Real They also will be able to maximize the strength of formed in 2003 through the integration of the Celebrity” pages, judge a virtual fashion show and chat on the their individual Isetan and Mitsukoshi brands. Sogo and Seibu department stores, with 966.5 bil- phone about fashion with a sweepstakes winner in the next “Isetan and Mitsukoshi, while understanding lion yen, or $8.48 billion. They will be followed by few weeks. The Olsens and Stardoll will share revenues, but and paying respect to the history and corporate H2O Retailing Corp., a new joint holding company terms of the deal were not disclosed. “They’re very savvy busi- culture of the other party, aim to become the ‘top for the Hankyu and Hanshin department stores, nesswomen and we’re excited to see what happens when they retail service group in the world’ by making ut- which will make a start in October. introduce their line of clothing to the site because we think most use of the business strength of each compa- Department store sales in Japan have been on there’s great demand for it,” said Matt Palmer, executive vice ny,” the companies said in a statement. a slide for the last 10 years, falling by 2 trillion president of Stardoll. A new lineup will put Takashimaya with sales yen, or $17.5 billion, in that time. lancome-usa.com Love is a treasure

KATE WINSLET. TRÉSOR 4 WWD, FRIDAY, AUGUST 24, 2007 WWD.COM MTV Partners With Conrad for Fashion By Khanh T.L. Tran LOS ANGELES — Lauren Conrad, the star of MTV’s reality hit “The Hills,” aims to have more than 15 minutes of fame by building her own fashion brand. After making her television debut as a high school senior on MTV’s “Laguna Beach: The Real Orange County,” and moving to Los Angeles to study fashion and work as an intern at Teen Vogue, as chronicled on “The Hills,” Conrad is launching a capsule collection of her namesake contemporary clothing line in September. That would be a dream for any independent fashion designer, let alone a 21-year-old who has gained a degree of fame for being herself on camera. In addition, MTV is taking the unusual step of being a fi nancial partner in Conrad’s clothing business, the Lauren Conrad Collection. “This is really a unique situation for us,” said Lisa Silfen, senior vice pres- ident of program enterprise at MTV. “It seemed like a natural extension to us [to partner with Conrad].” MTV declined to disclose the details of its fi nancial stake in the Lauren Conrad Collection, but network executives said they introduced Conrad to her label’s creative director and merchandiser, Sherry Wood, who was creative di- rector of the Los Angeles sportswear label Tart. MTV also helped Conrad build an e-commerce site, shoplaurenconrad.com, which will be the exclusive retail- er for Conrad’s 10-piece fall collection after the site goes live on Sept. 15. If successful, the formula could be repeated by other networks for reality TV personalities. Still, companies have yet to master the art of matching the right person with a loyal fan base to an appropriate product and supportive retailer. “This is about taking someone [like Conrad] that is unique- ly qualifi ed with desire and talent and abilities, and helping SARDELLA DONATO PHOTOS BY CONRAD LAUREN her connect with her audience, which is also our audience,” From left: A prototype of a clutch that Lauren Conrad designed said Lori Megown, vice president of consumer products and for Linea Pelle, Conrad with a model wearing a peach-colored radio at MTV. minidress from her namesake line and a spring look from the It’s a playing fi eld full of potential and profi ts. The Aug. Lauren Conrad Collection. 13 premiere of the third season of “The Hills” was MTV’s You can buy a simple dress and accessorize.” highest-rated show this year, drawing about 3.7 million Youthful and fl irty with hemlines fl oating inches above the viewers, according to Nielsen Media Research. Of that knee, the spring lineup is crafted primarily out of jersey, voile number, women under the age of 18 made up 17 percent, and and gauzy cotton. Wholesaling from $22 for a tank top to $100 for a women between the ages of 18 and 34 were 49 percent. fl oor-grazing gown, the 44 pieces are imbued with a rich palette of “I really think reality [TV] is going to be the next breeding ground for sienna, peacock green and midnight blue. The sole print is that of mega brands,” said Maggie Dumais, a licensing agent for Creative Artists Agency, the a row of overlapping dots, and adornment is limited to eyelet trim Los Angeles-based talent fi rm that represents celebrities, including Carrie Underwood, and a matte gold button that looked as if it was taken from a grand- who began shilling for sneaker maker Skechers after winning “American Idol” in 2005. mother’s cardigan. Though a big fan of dresses, Conrad also included billowy tops and With her golden hair, green eyes and raspy voice, Conrad resembles a young Kathleen a white linen romper with a matching sash that can be worn as a belt or scarf. Turner via the O.C. The eldest daughter of an architect, she told her mother she wanted “We really took her background of growing up on the beach and moving into the to be a fashion designer when she was in sixth grade. She folded T-shirts in a surf shop city,” said Wood, adding that the two conducted market research by shopping, check- on the Pacifi c Coast Highway, modeled for board sport vendors at the ASR Trade Expo ing with trend services and studying other labels such as Ella Moss, Splendid, Juicy and was an intern in the showroom for Garden Grove, Calif.-based knit brand Three Couture and Velvet. The fi rst-year wholesale sales target is $2 million, and Conrad Dots. Conrad decamped to San Francisco to study fashion design at the Academy of hopes to see her clothes sold next year in Madison, Fred Segal, Intermix, Nordstrom, Art University, but she missed the Southern California sunshine. Conrad left after a Bloomingdale’s and, in her words, “just the stores I shop at anyway.” semester to move to Los Angeles, where she began studying product development at the Conrad’s practicality infl uenced the designs for the $45 coin purse, $145 clutch and Fashion Institute of Design & Merchandising and working at Teen Vogue. $350 tote bag that she designed for Linea Pelle. “Function, in addition to fashion, proved In addition to her clothing line, which she began creating in April, Conrad will to be just as important to her as the overall look and feel of the bag,” said Andrew Cotton, unveil a set of clutches and bags produced by Los Angeles-based accessories brand Linea Pelle’s vice president and creative director, noting that Conrad maintained clean Linea Pelle for the resort-spring seasons. Conrad, a spokeswoman for Avon Products styling with simple silhouettes and colors such as black, mahogany and dark olive green. Inc.’s Mark, also sketched horseshoes, four-leaf clovers and other lucky charms that Viewers “like Lauren Conrad,” said Jane Buckingham, president of The Intelligence will be marketed by the makeup line tailored to 18- to 24-year-old women. She will Group, a trend forecast, marketing and research fi rm owned by Los Angeles’ Creative begin wholesaling the sophomore collection of her apparel line to specialty and de- Artists Agency. “They are interested in what she’s doing. She has access to the best partment stores on Aug. 27 at Project Global Tradeshows in Las Vegas. clothes, the best handbags [and] what Hollywood has to offer.” “The clothes are pretty feminine,’’ Conrad said. “They’re very comfortable and As for the young entrepreneur, “I’ve always wanted a clothing line,” Conrad said. easy to move in….The pieces are clean. I did that on purpose. I like to accessorize. “This is my fi rst collection and I do really want to make a very good impression.” $12M L.A. Counterfeit Raid Swarovski Gives Chandeliers Its Crystal Touch LOS ANGELES — Authorities seized $12 million in counterfeit By Samantha Conti Until now, the chandeliers have been sell- jewelry, handbags, wallets, watches, CDs and DVDs and arrest- ing, but only through Swarovski and a hand- ed five vendors during a raid here Wednesday afternoon in the LONDON — After making its mark in fashion and ful of stores, including Moss in New York and downtown garment district’s Santee Alley shopping bazaar. jewelry, Austrian crystal giant Swarovski is mov- California, and Luminaire in Florida and The antipiracy task force of the Los Angeles Police ing into designer chandeliers. Chicago. Swarovski said by next year, she plans Department led the raid on the crowded quarter-mile stretch, The company has set up a new Crystal to have at least 10 retailers in Europe, North where stores and vendors offer an array of merchandise to bar- Palace division that will wholesale chan- America and Asia on board. Stores such as gain hunters. Fashion goods comprised about 85 percent of the deliers by artists, designers and architects Selfridges will likely sell the line. confi scated items, including counterfeit Gucci, Prada, Louis including Zaha Hadid, Amanda Levete, the Prices will range from $3,000 for a Tord Vuitton and Dooney & Bourke bags. There also were fake Rolex Campana Brothers, Ross Lovegrove, Tom Boontje Mini Blossom chandelier to $1 million watches and Tiffany bracelets, said Detective Rick Ishitani of Dixon and Ron Arad. for a one-of-a-kind piece by Gaetano Pesce, the the task force. Andrew Black, who was recently appointed Italian artist, designer and architect. Items were seized from more than 20 stalls on four blocks, publishing director of Wallpaper magazine, has The Crystal Palace offices are based in each containing about 100 to 200 pieces. been named managing director of the new com- London, and Swarovski said there will even- “There were still shoppers from places like Houston, who pany, known as Swarovski Crystal Palace. tually be headquarters in New York and Hong were looking for the bags,” Ishitani said. “We’re applying the same equation we used Kong or Shanghai as well. Counterfeit goods — both made in China and exported and with designers like Alexander McQueen to the Black said he would be recruiting worldwide sold in China — are a major problem in fashion, but it is a prob- architecture and design arena,” said Nadja for sourcing, manufacturing, marketing and lem that is affecting all industrial sectors, from electronics to Swarovski, vice president of international com- communications teams. pharmaceuticals. Luxury and fashion brands have become munications at the crystal company. “For us, “We’re starting a business from the ground more aggressive in recent years in battling counterfeits. these chandeliers are all about design.” up, with the aim of offering these chandeliers The raid coincided with the U.S. Chamber of Commerce’s Over the past decade, Swarovski has been to a wider market,” said Black, who starts work fi rst Counterfeiting and Piracy Awareness Week, a series of developing crystals for fashion designers, in the fall. events taking place throughout the city to educate business sponsoring shows and supporting young run- Black worked at Wallpaper for three years owners about intellectual property rights protection. way talent. and was previously senior vice president of The chamber implemented a global, multimillion-dollar ini- In 2002, the company began turning its eye the ad agency Laird + Partners in New York, tiative in 2004 in which industry executives, law enforcement to the design world, commissioning one-off and heading up accounts including Gap and Donna and government offi cials and private investigators joined in ef- limited edition chandeliers from top artists and Karan. He has worked for Donna Karan, forts to thwart counterfeiting. architects for a project known as Swarovski Bergdorf Goodman and Saks Fifth Avenue in — Marcy Medina Crystal Palace. advertising and marketing capacities. WWD, FRIDAY, AUGUST 24, 2007 5 WWD.COM

Jeff Halmos and Sam Clearance Drives Shipley Retailers’ Revenue By Jeanine Poggi and Erica Owen etailers reporting second-quarter results Thursday delivered Rconsistently robust sales gains, suggesting summer clearance events worked and that early back-to-school promotions at the teen retailers were successful. Profits, however, were another story. Earnings fell at New York & Company Inc. and Stein Mart Inc., while The Wet Seal Inc. and Buckle Inc. delivered standout performances. Several retailers offered cautious outlooks for the second half. The bulk of retailers reported results early Thursday while Pacifi c Sunwear of California Inc., Bebe Stores Inc., Gap Inc. and Aéropostale Inc. released quarterly numbers after the mar- ket closed. At New York & Co., second-quarter earnings plummeted 46 percent as the company slashed its full-year guidance. For the three months ended Aug. 4, earnings fell to $3.5 million, or 6 cents a diluted share, from $6.5 million, or 11 cents, in last year’s period as sales for the quarter increased 11 percent to $294.4 million from $264.8 million. Total same-store sales rose 4.7 percent in the quarter. The company lowered its full-year earnings forecast to a range Second Acts of 47 cents to 58 cents a diluted share, from previous guidance of NEW YORK — Quietly and without the buzz 85 cents to 92 cents a diluted share. New York & Co. expects third- their previous gig afforded them, Sam Shipley quarter earnings in the range of 1 cent to 6 cents a diluted share. and Jeff Halmos, formerly of Trovata, are Stein Mart posted second-quarter results that declined year- launching their own contemporary collection, over-year and issued third-quarter guidance below Wall Street’s Shipley & Halmos, for spring. Less than a expectations. Stein Mart earned $2.2 million, or 5 cents a diluted year after leaving that much-feted California- share, in the quarter — down from $8.3 million, or 19 cents a di- based company, which they cofounded with luted share, in the year-earlier period. Revenue came in at $330.1 existing head John Whitledge and Josia million, down from $336.3 million in 2006’s second-quarter. Lamberto-Egan, the duo has packed up and Analysts expected the discount retailer to report earnings of moved cross-country, setting up shop in New 5 cents a share on revenue of $333.3 million. Stein Mart forecast York. (Interestingly, all the original principals a third-quarter loss between 3 cents a share and 6 cents a share; remain shareholders in Trovata.) analysts are looking for third-quarter income of 4 cents a share. In their own words, Shipley & Halmos is At the bell, Bebe Stores reported a decline in operating in- “an offering of some clothing & things crafted come and earnings for its fourth quarter on a sales gain of 6.9 with hand, health and heart,” an explanation percent as the retailer took higher markdowns. printed on their silk labels. However they spin Net earnings fell 10 percent to $19.7 million, or 21 cents, from it, it’s a shopper-friendly collection of about 17 $21.9 million, or 23 cents, in the prior year on sales that rose to pieces featuring a slew of pretty day dresses, $162.7 million from $152.2 million. Same-store sales declined 5.7 casual tunics and plenty of men’s wear-style percent. Operating income dropped 12.8 percent to $25.1 million shirts paired with preppy high-waisted shorts. from $28.8 million. Initially, Barneys New York will carry the line The retailer said gross margin as a percent of net sales de- exclusively. Both 27, Shipley and Halmos creased to 48.1 percent from 50.5 percent in the prior year and eliminated some of the cute details their for- “was primarily due to higher markdowns and unfavorable occu- mer label is known for, but left others in for Looks from pancy leverage partially offset by higher initial markup.” interest — sexy, extra-deep arm holes on silky Shipley & Halmos. For the year, earnings rose 4.7 percent to $77.3 million, or 81 tanks, slouchy bows on crisp white shirts and cents, from $73.8 million, or 79 cents, in the previous year on sales more structured ties attached to a great teal trench. “We wanted to go for something more feminine that climbed 16 percent to $670.9 million from $579.1 million. and mature, to feel out who our girl is,” says Shipley. Wholesale prices start at $45 for blouses, $70 for Mall-based teen retailer Aéropostale reported earnings pants, $145 for dresses and $200 for coats. that rose 75 percent to $14.7 million, or 19 cents a share, from Although New York Fashion Week is right around the corner, the two decided to bypass the run- $8.4 million, or 10 cents a share, in the prior year on sales way for now. “We’re in no hurry,” says Halmos. “We’d like to get two seasons under our belts before that gained 13 percent to $311.2 million from $274.6 million. we do that.” Indeed, between producing the new collection, including a men’s lineup, moving to Aéropostale said it expects third-quarter earnings in the range New York and trying to fi nd a home for not only the business but also themselves, there’s been little of 43 cents to 45 cents a diluted share. time for anything else. “We’ve done everything ourselves,” says Shipley. “From setting up phone Pacifi c Sunwear delivered a loss of $10.5 million, or 15 cents lines to technical design.” Halmos chimes in, “Maybe we’ll try to get an intern next season.” a share, in the second quarter, which compares to net income of But for now, this is a highly personal endeavor for the pair, who have known each other since $9.7 million, or 14 cents, in the year-ago period as sales rose 9.2 college. Thus, the decision to use their names instead of coming up with some catchy moniker. “If percent to $344.2 million from $313.7 million. The surf-inspired your name is on the label,” explains Shipley, “you have a greater responsibility to the consumer to apparel company expects third-quarter earnings of 10 cents to make sure it’s right.” 13 cents a diluted share. — Nandini D’Souza Earlier in the day, Deb Shops Inc. reported a 5.1 percent jump in second-quarter earnings to $6.2 million, or 43 cents a diluted share, from $5.9 million, or 41 cents, last year on a sales gain of 27.5 percent to $77.7 million from $75.7 million. During the quarter the teen retailer announced that Lee Equity Partners LLC will acquire the company for $27.25 a share. The company will no longer provide guidance and has canceled its second-quarter conference call. At The Wet Seal, earnings surged 53 percent to $6.8 million, or 7 cents a diluted share, from $4.4 million, or 4 cents. For the three months ended Aug. 4, sales rose 10.6 percent to $143.3 million, from $129.5 million, while total same-store sales fell 1.7 percent. The company expects diffi cult traffi c trends in the specialty sector to continue, and anticipates third-quarter earnings in the range of 7 cents to 10 cents a diluted share. The Bon-Ton Stores Inc. narrowed its loss to $15 million, or 91 cents a diluted share, from a loss of $19.8 million, or $1.20, in the year-ago period as sales for the quarter dropped 51 percent to $708.6 million from $746.8 million. The company cut its full-year forecast, now expecting earn- ings in the range of $2.75 to $2.90 a diluted share. “While un- certainty regarding consumer confi dence persists, we believe we have the right initiatives in place to achieve our revised guidance for the year and our longer-term objectives,” said Bud Bergren, president and chief executive offi cer, in a statement. Buckle reported net income up 44.6 percent year-over-year, eas- ily beating Wall Street estimates. The denim-themed retailer posted net income of $11.8 million, or 38 cents a diluted share, up from $6.6 million, or 22 cents a share, in the year-earlier period. Analysts ex- pected the company to post earnings of 32 cents a share. Revenue rose 17.5 percent to $124.3 million from $102.4 million. PHOTOS BY PASHA ANTONOV PASHA PHOTOS BY 6 WWD, FRIDAY, AUGUST 24, 2007 The Beauty Report Diesel Gases Up With Fuel For Life

By Stephanie Epiro ironic, innovative, always wanting to do something dif- ferent. They transmit our energy,” said Rosso. MILAN — Diesel is using the Internet to catapult itself Though Rosso refused to name a fi rst-year sales fi g- into the fragrance business. ure for the masterbrand scent project, industry sources Along with its licensee, the L’Oréal Luxury Products said that fi gure could hit 60 million euros globally, or Division of L’Oréal, the northern Italian jeans and life- more than $81 million at current exchange. That in- style brand has embarked on an aggressive and in- cludes the U.S., where industry sources estimate L’Oréal novative launch campaign for its fi rst masterbrand of could be shooting for a six-month goal of $35 million in scents, called Fuel For Life For Her and Fuel For Life retail sales. For Him, which will release globally on Monday. Rosso said the company was aiming to build its fra- Both companies have masterminded a prelaunch grance business to represent 35 percent of Diesel’s momentum strategy. Spearheading the lead-up to the turnover. “All together we are working to position this on-shelf date, a guerilla and viral Internet marketing brand as one of the top 10 players in the fragrance campaign broke on Aug. 9 to cultivate interest on the world,” said Rosso. new fragrances and their names. The campaign has Fuel For Life For Her and Fuel For Life For Him will also reached 50 independent blog sites. eventually be rolled out to 18,000 doors in 25 countries by As a teaser to the launch, L’Oréal created an anti- mid-2008. Diesel’s denim DNA was also tapped for the marketing campaign, consisting of a fake activist or- scents’ packaging. The fragrances’ slender oval-shaped ganization on the Internet, exhorting viewers to join fl acons are dressed in diverse covers. The Fuel For Life a movement opposing legalization of what cryptically For Her bottle is wrapped in a fi shnet ivory stocking; is referred to as “Fuel for Life.” On Monday, when the its male counterpart is in a tan canvas slip-jacket, with fragrances are launched and the mock battle is lost, a side zip, stitching and leather tab. Fabien Baron de- all the signed-up members will be redirected to the signed both Fuel For Life’s fl acons and packaging. Diesel Web site, which will morph into an e-commerce “The packaging is true innovation because it en- proposition for the U.S. only. capsulates this vintage lifestyle brand, it translates The companies will go to equal lengths in the ad- the idea of jeans into the packaging,” said Ladan Lari, vertising campaign. Six TV spots, featuring different Diesel Fragrances International Managing Director, models, are slated to run nationally on cable channels part of the L’Oréal Luxury Products Division. and eight different print ads — four for the women’s Lari added that 20,000 Fuel For Life bottles would be and four for the men’s scents — will appear in about allocated for customization on Diesel’s Web site begin- 30 magazines. The driving theme is the key question, ning Monday. Customers in the U.S., Europe and Canada “Are You Alive?” L’Oréal executives estimate that 350 will be able to order from 8,000 possible combinations of million to 400 million impressions will be made in the pouch fabric and color, fl acon caps and logos. U.S. between the print and TV advertising. That is in Diesel’s new ad campaign for Fuel For Life. “We wanted to nourish the future to give the con- addition to about 15 billboards displaying the ads in the sumer a chance to customize the product and get something U.S. The print ads were shot by Nick Knight and the TV spots were directed by individual — which is emblematic of Diesel,” said Lari. Laurence Dunmore. In addition to the scents’ particular packaging, Rosso designed two separate L’Oréal does not break out sales or advertising projections, but industry sources bronze and gold pocket chains that hold 15-ml. Fuel For Life vials, to be sold along- estimate that the company will spend nearly $20 million in the U.S. alone for adver- side the scents for $95. “It’s very Diesel,” pronounced Rosso, who hooked it onto his tising and promotion. jeans and showed how the device twisted open to reveal the minifl acon. The per- “For us, this is the launch of a new partnership and there’s massive support be- fume accessories will be launched separately in mid-October. hind it because it’s the fi rst stepping stone for building a signifi cant and meaning- Firmenich developed both scents. Fuel For Life For Her was created by Annick ful fragrance business under the Diesel umbrella,” said Serge Jureidini, president Menardo and Thierry Vasseur and is a chypre-fl oral, with top notes of mandarin and of L’Oréal’s Designer Fragrance Division in the U.S. “This is just our fi rst step in a pink pepper, heart notes of blackcurrant and jasmine and patchouli and musk at the major initiative and our ambition for the brand is huge.” base of the olfactory pyramid. The unusual degree of the effort perhaps refl ects how much is at stake for both Fuel For Life For Him belongs to the fougere-powdery scent family. Noses Annick Diesel and L’Oréal. In an interview with WWD at Diesel’s headquarters in Molvena, Menardo and Jacques Cavallier created the For Him scent, which has top notes of Italy, Renzo Rosso, founder and president of Diesel, said diversifying into fragrance anise and grapefruit, middle notes of raspberry and lavender and base notes of was a natural and obligatory step for the company, which he founded in 1978. heliotrope and dry woods. “Our moment has arrived, now that the brand’s status has grown so much, a fra- Price points for Fuel For Life For Him will range from $44.50 for a 50-ml. eau de grance license is a necessity, to highlight and show what the brand is today,” said toilette spray to $59.50 for the 75-ml. size. Fuel For Life For Her ranges from $49.50 Rosso, dressed in a pair of black denim jeans, T-shirt and sandals. for the 50-ml. edt to $64.50 for the 75-ml. version. Both scents will have a luxury 75- Rosso said the new scents were aimed to channel Diesel’s lifestyle and enhance ml. bottle dubbed “Bling Bling” — decorated with jewelry — that will retail for $95. the brand. “Everything inside the scents is a condensation of who we are: fresh, — With contributions by Michelle Edgar, New York Maxim’s de Paris Inspires Candle Collection ome fragrance consultant Pamela Friedman Hhas partnered with Parisian restaurant Maxim’s de Paris to develop a luxury home fra- grance collection. The scent lineup is based on the restaurant’s rich cultural heritage, which traces back to the late 17th century. “Maxim’s has long been a symbol of the Parisian art of living,” said Friedman, owner of PRF Concepts Inc. “I have always had a person- al fondness for the elegant ornamentation that adorns [Maxim’s] restaurants around the world.” Friedman said she wanted to create an assort- ment of candles that refl ected the restaurant’s interior decor and captured its ambience. Items from the Belle Epoque candle collection. The Maxim’s de Paris home fragrance collec- tion will include two separate lines — Maxim’s — Sweet Black Currant, Linden & Mint Tea, Sem and Belle Epoque. The Sem assortment is Chocolate Craquelines and Bois D’Or. Made a playful, modern interpretation of the work of from soy paraffi n, the fragrance oils are de- Parisian artist Georges Goursat, also known as signed with multilayered scents. Sem, who was known for his whimsical carica- The candles in the Maxim’s Sem assortment tures of society patrons dining at the restau- offer up to 60 hours of burning time and retail rant. Maxim’s Sem collection will feature three for $45 each; the Belle Epoque candles will last fruity and fl oral fragrances — Figuier Blossoms, up to 75 hours and retail for $50. Bergamot Eclat and Fruit Glace. The Maxim’s Sem line will launch in October The Belle Epoque candles were inspired exclusively at Bergdorf Goodman; a rollout of by Paris’ Belle Epoque period and the restau- both lines to specialty retailers and upscale gift rant’s interior fl oral and fauna decorations that boutiques will follow. date back to the early 20th century. Each of the Industry sources estimate that both the candle fragrances is inspired by foods taken Maxim’s Sem and Belle Epoque collections will from the menu’s offerings of fruit, wine, cham- bring in between $1 million to $2 million in fi rst- pagne, fl ower blossoms, pastries and teas. The year retail sales. Belle Epoque line will feature four fragrances — M.E. PHOTO BY ROBERT MITRA ROBERT PHOTO BY WWD, FRIDAY, AUGUST 24, 2007 7

WWD.COM MAC, Kors Plan Limited Edition Scents By Julie Naughton wide for the Estée Lauder Cos., worked with Laurent Le Guernec of International Flavors and Fragrances to concoct Air of Style, which has top notes of red dates, wild he fragrance world is borrowing a page from fashion’s book — and positioning red peonies, island cypress and white pepper; a heart of tuberose absolute, orange Tlimited edition scents as the “It” bag equivalent in beauty. blossom, jasmine, ylang ylang and orris, and a drydown of leather, rare woods, veti- Over the past several years, fragrance brands — especially those created with ver, tonka beans and amber crystals. Balbier calls it a “baroque fl oral.” fashion designers — have been building, or reinforcing, brand equity by adding Air of Style will be available at MAC’s retail stores, as well as Henri Bendel, Saks Fifth fl anker fragrances to established franchises. Now, several are taking that one step Avenue and select Nordstrom locations, for a total of 175 doors, beginning Nov. 29. further by creating limited edition fl ankers — ushering in a “must-buy-now” senti- With Island Capri, Michael Kors Beauty will introduce the third in a series of ment, or so the companies hope. limited edition Island fragrances inspired by the beach locations the charismatic “You’re always going to have your classic handbag and your classic pump, but you designer frequents. also want the fun sandal you can wear for the season — that you know isn’t going to be “The island hopping doesn’t stop with me, but one place that has been consistent for a long-term investment,” said Michael Kors, whose limited me over the years has been Capri,” said Kors. “It’s one of edition Island Capri launches this fall. “So instead of the those rare places that is laid back as well as glamorous.” black pump, [the limited edition scent is] the orange croco- Island Capri, created by Trudi Loren, vice president of dile pump. And also, there’s something that makes you feel corporate fragrance development worldwide for the Estée special if it’s limited. By the time it really catches on, you Lauder Cos., and Evelyn Lauder, senior corporate vice pres- may not be able to get it any more — which is defi nitely a ident and the company’s nose, in cooperation with IFF, has motivator to go pick it up now.” top notes of sparkling orange bigarade, crisp green Italian James Gager, senior vice president and creative direc- basil and succulent bergamot; a heart of rose petals, violet tor for MAC Cosmetics Worldwide, which, like Kors, is also de parma, jasmine blossom and fi g, and a drydown of olive part of the Estée Lauder Cos. Inc., agrees: “There’s a cer- tree accord, warm white moss and sensual skin accord. tain mystique in what you can’t have — it makes you want Diane Kim, vice president of global marketing for it more. With the advent of so much stuff out there and a Aramis and Designer Fragrances, noted that the collec- lot of disposable income, people want something that is tion will include a 1.7- oz. eau de parfum spray, priced at special. When you have a limited edition and you know it’s $60; a 5-oz. body gelée, $27.50, and a 0.5-oz. lip gloss, $12. going to be hard to get, that makes it coveted — and it starts Its target market is 18- to 34-year-olds. Outer packaging going for big prices on eBay.” for the Kors scent is of a colorful sunset over Capri. Adds Jennifer Balbier, senior vice president of global Advertising, featuring Carmen Kass and shot by Enrique product development, MAC Cosmetics, “I actually think Badulescu, will run in January fashion, beauty and life- our customer prefers it if she has to work a little for it. The ad for Island Capri. style magazines, said Stephanie Benedetti, vice president She knows she’s not going to smell like everyone else.” of marketing for Aramis and Designer Fragrances. That’s the theory that Gager and Balbier are following with MAC’s new fragrance, Upward of 25 million scented impressions are planned, Benedetti added. Air of Style, due out at the end of November. Developed as part of the brand’s Island Capri will be sold in about 2,000 U.S. doors. About 300 of those doors, in- Stylistics Collection for holiday, it’s at the higher end of MAC’s price points — $60 cluding Neiman Marcus, Bloomingdale’s and Sephora stores, will begin selling the for 1 oz. — and just 3,000 units of the fragrance will be produced. fragrance in November; the balance of the doors will get the scent on Jan. 1. The “The Stylistics Collection is intended to be more of a ‘couture’ collection,” said scent will also be sold on sephora.com. Globally, it will enter doors in the United Gager, adding that the cosmetics line will include gem-encrusted compacts and luxu- Kingdom, Spain, Italy and Germany. rious powders. For instance, in the Stylistics Collection, a powder is $45 and a lip Kors said that more Island fragrances are defi nitely on the horizon. “Our cus- gloss $22, compared with the MAC’s standard price range, where a lipstick is $14 tomer either is in fact a literal traveler, or is a fantasy traveler,” he said. “We’ll keep and a fragrance is $22.50 for 20 ml. taking her to new destinations. The concept works because you’re not saying ‘this is But the point isn’t to increase the margin with the price hike, added Balbier. “It’s my fragrance for life, rather, you’re switching it up and playing around.” more about being able to use real [essence] absolutes and luxe packaging,” she said, While all executives involved declined to comment on sales projections, industry adding that the fragrance’s teardrop-shaped bottle is handblown in Murano, Italy, sources estimated that MAC’s Air of Style would do about $180,000 in its time on and is reusable after the fragrance has been used up, due to its glass stopper. counter, with Island Capri expected to do about $10 million at retail globally, with Karyn Khoury, senior vice president of corporate fragrance development world- close to $8 million of that fi gure expected to be generated in the U.S.

Exclusive sets from Tarte, Sephora’s in the Holiday Mood Sephora and Bare Escentuals.

eauty executives now, more than ever, realize the Laura Geller: The Baked to Perfection Collection, Bimportance of differentiated holiday offerings which includes makeup primer, foundation, blush, — and 22 brands are putting their holiday bets on powder, eye shadow and mascara for $60. Sephora, offering gifts sets exclusively to the upscale Lavanila: Three Wishes, a trio of 2.75-oz. body but- beauty retail chain. ters for $26. “We work with the brands to come up with the ul- L’Occitane: Hand’s Best Friend, a trio of 1-oz. hand timate items that we want for ourselves,” said Betsy creams for $25; Shea to Go, a travel collection with Olum, senior vice president of marketing at Sephora, fi ve shea butter items for $20, and Open Up to Shea, a noting she’s proud of Sephora’s tradition of nurturing set with fi ve larger shea butter products for $38. indie brands. The retailer has 160 doors in the U.S. Lorac: Fairytale Life, a makeup set which includes and will also sell its exclusive sets via sephora.com, eight eye shadows, two blushes, two lip polishes, a its Web site, beginning in October. mini mascara and a double-ended eye shadow-eye- The 2007 offerings are: liner brush for $52. Bare Escentuals: The Buxom Babes Lip Collection, Make Up For Ever: Diamonds For Ever, a kit which a set of four lip glosses for $28, and Classic Rock includes Diamond Powder, a champagne-hued shim- Too Faced: Lights, Camera, Glamour, a “makeup Diamond Collection Kit, a $59 set that includes a lu- mer; Diamond Shadow, a highly pigmented white eye studio in a box” with eight eye shadows, six lip gloss- minizer, eye shadow, skin glimmer, mascara, blush, lip shadow; mascara, eyeliner and lip gloss for $49. es, a face powder, a bronzer, four shades of face il- polish, two brushes and a makeup bag. Marc Jacobs: Two sets, a Marc Jacobs Holiday set luminator, two eyeliners, two brow powders and four Benefi t: The Best of Benefi t, a $46 set that includes with a 1-oz. eau de parfum spray, a 1.7-oz. body lotion shades of blush for $40. Bad Gal Lash mascara, an Eye Bright pencil and and a mini lip gloss compact for $50, and a $60 Daisy Urban Decay: Foreshadow Palette, a quartet of the Dallas, a bronzer-blush, and Powder Pop!, a trio of Marc Jacobs set that includes a 1.7-oz. eau de toilette brand’s best-selling eye shadows for $24. powders in a keepsake box for $30. spray and a 5.1-oz. body lotion. Sephora’s also creating plenty of its own lim- Bliss: Two exclusive sets: Do You Sea What I Sea, Napoleon Perdis: Patrol Palette, a palette of color ited edition products for the holidays. For the color four marine-inspired amenities for $20, and Snow cosmetics, for $39. maven, there’s a $48 Blockbuster Palette which in- Suit, which includes a 3.3-oz. bath and shower gel and Ojon: Tawaka Discovery Hair Ritual Kit, a 3.3-oz. cludes 64 eye color shades, 23 lip glosses, nine lip a 4.25-oz. body butter for $26. cleanser for hair, face and body, a conditioner and a shines, six blushes and two compact powders. For Bulgari: A $59 Coffret set of three of its fragrances, rejuvenating cream for $55. the scent lovers, there are men’s and women’s Scent Pour Femme, Voile de Jasmin and Rose Essentielle, Philosophy: Home for the Holidays, with three 6- Samplers, $45 apiece, each of which includes samples each in a 10-ml. size. oz. bottles of the brand’s 3-in-1 shampoo, shower gel of best-selling fragrances, plus a Sephora gift certifi - Caudalie: Spa in a Box, with a trio of miniscrubs, and bubble bath for $30. The scents are Apple Cider, cate, which can be redeemed at any Sephora store for a limited edition shower gel, hand and nail cream, Double Rich Hot Cocoa and Cinnamon Buns. a full size of any of the samples included in the set. Beauty Elixir, a lip conditioner and herbal tea for $59. Stella McCartney: A 10-ml. eau de parfum roll-on For the makeup artist — or the gal who just can’t bear Fresh: Three gift sets: Sugar Lip Gloss and Supernova of the designer’s eponymous fragrance, $13. to throw anything away — Sephora will offer three Mascara sets in two colors, each $42, and a $58 Sugar Stila: Gift of Glow, a $50 bronzing set, which in- new versions of its popular Train Case, in pink, gun- Tart Gift Set which includes a 30-ml. eau de parfum, a cludes a bronzer with SPF 15; a baked eye shadow metal and fake crocodile. The fi rst two will retail for 300-ml. bath and shower gel and a 300-ml. body lotion. trio in gold; brown sugar lip glaze, a sample size $98 each; the Croc version is $110. Six new makeup Jean Paul Gaultier: Classique eau de parfum refi ll- smudge pot in bronze; and a mini eyeliner brush. brush sets, in colors ranging from pink, blue and sil- able pocket spray, $58 for two 20-ml. sprays. Ta r t e : We Wish You Wealth Palette, with 16 eye ver to brown and white, will range in price from $15 Korres: Guest Kit, which includes shower gel, body shadows, 16 lip glosses, three lip sheers, four gel eye- for a pocket brush set to $150 for a professional-qual- milk, shampoo, conditioner, softening soap, milk soap liners, one eyelid primer, one luminizer, four cheek ity set of brushes. and a reusable travel case for $34. stains and eye shadow and lip brushes for $52. — J.N. 8 WWD, FRIDAY, AUGUST 24, 2007 The Beauty Report WWD.COM Drugstores Trimming Beauty Inventory

By Molly Prior and Faye Brookman cal approach to determining which items stay in the assortment, and which go. Nevertheless, the chain introduced some 3,000 new beauty products in the past year, NEW YORK — The drugstore industry, a sprawling behemoth that has been threatening and increased its cosmetics wall by 8 feet to 76 feet in 500 doors last year, said Cheryl to devour the department store beauty world for years, seems to have lost its appetite. Mahoney, vice president of merchandising for beauty care, adding that the change Following the lead of big-box competitors, drugstores are drafting plans to scale was based on the double-digit sales growth of cosmetics last year. This year, she also back inventory and trim the number of beauty products they carry, according a num- anticipates double-digit growth in cosmetics, hair care and skin care. ber of industry experts. The drugstore chain will continue to install the 76-foot cosmetics wall in new and reno- The de-bulking effort is a move to boost stores’ profi tability, particularly in the vated stores. Mahoney said she was not aware of any changes in inventory replenishment. wake of slowed consumer spending and two sizable acquisitions, namely CVS Corp.’s CVS continues to emphasize beauty, and in May launched an aggressive market- March merger with Caremark Rx and Rite Aid Corp.’s purchase of Brooks and ing program called Reinventing Beauty, which includes in-store signage and circular Eckerd stores from The Jean Coutu Group, which was completed in June. direct-mail advertising. It’s focus on beauty seems to be paying off. After all, the larger the retailer, the greater the power they wield. It’s an ongoing shift Last year, CVS’s beauty business grew two times faster than the industry average, and of power that ironically mirrors what’s happening in the department store channel. But some beauty mavens said the inventory squeeze right now is merely to clean out for the barrage of new items. A top beauty merchant for one of the leading drugstore chains pointed out the Something has happened to the consumer, decline of Revlon’s sales has created a feeding frenzy for space. “I have never seen “ so many new lines and requests for space in my life,” said the seasoned source. especially the drug chain shopper. They are Manufacturers added that buyers — hoping to keep their beauty footage intact — are driving the initiative for new items. Rick Goldberg, vice president of cosmetics for retrenching. Coty Beauty, said the planogram reduction changes might not be seen until 2008. “In ” — Allan Mottus the meantime, buyers are coming back to vendors and giving us great ideas so we have hot stuff to leave the footprint.” its cosmetics sales grew three times faster than the industry average, said Mahoney. Whether consumers truly desire the new items or not will be the question. She hinted there are a fl ood of beauty launches slated for next year. “I think it’s “Something has happened to the consumer, especially the drug chain shopper,” ob- going to be an exciting year,” said Mahoney. served industry consultant Allan Mottus. “They are retrenching and for retailers One industry source said that in aggregate the upcoming cosmetics launch- there are so many stockkeeping units that it is hard to handle the turns. And, with es across all brands, which are said to include an organic cosmetics line from other categories growing, it [beauty] is not as critical to them.” Mottus cited other Physicians Formula, would require 30 feet of additional retail space next year. growth opportunities such as mini clinics and even apparel for drugstores. CVS’s big-box competitor, Target Corp., is said to also tightly control its inventory With so many sku’s, some merchants said they are getting pressure from top man- and product assortment. One vendor said that every four to fi ve years, Target re- agement to edit, a move supported by Procter & Gamble Co., which has studies on views the space in each department. The practice, which is sometimes referred to as how avoiding duplication can net greater productivity. “space wars,” requires each department head to justify their square footage. Vendors Harvey Alstodt, president of Del Cosmetics, said retailers are “crushing” inven- noted that Target constantly culls slower-moving items from its beauty assortment, tories, which isn’t necessarily a bad thing. “Tighter inventories don’t mean a loss of requiring each brand to reduce its sku count by 5 percent a year. Industry sources sales as long as you don’t go too low and have out of stocks.” also said that next year, Target plans to shift 12 feet of bath space to skin care. Referring to retailers’ efforts to pare down the assortment, Wendy Liebmann, presi- Target had revamped its entire specialty department in spring 2006, clearing na- dent of WSL Strategic Retail, said, “It’s a refl ection of a new power struggle be- tional brands and replacing them with exclusive foreign-born lines. tween retailers and the brands they carry about who controls the space.” Industry sources also said Walgreens has talked of trimming space She added that inventory continues to be a signifi cant issue from its beauty department. One vendor said the drugstore chain across all categories, as retailers work to improve the shopping was considering dedicating 6 feet of space to creating six 1-foot experience. spacers to display visuals, rather than product. A Walgreens “There’s just too much stuff, and that makes it more dif- spokeswoman said the retailer currently has no plans to fi cult to shop,” said Liebmann. She cited a recent shop- scale back its beauty department, but that it is consider- ping survey that WSL conducted in partnership with ing a smaller prototype store for urban areas. Wal-Mart the Network of Executive Women, which revealed that is also said to be mulling smaller formats that could when it comes to makeup, 52 percent of women sur- include health care services. Wal-Mart, according to veyed described selecting a new foundation as “dif- Mottus, has already tightened up its beauty footprint. fi cult,” as opposed to “easy” or “so so.” Nearly the same percentage rated buying a com- puter or choosing a cell phone service as “diffi cult.” CVS launched its The study also indicated that more women, or 44 Reinventing Beauty percent, said choosing a new lipstick was diffi cult campaign in May. Inset: than women who rated selecting an over-the-coun- Inside a Wal-Mart ter medication, 38 percent, as diffi cult. distribution center. In the end, said Liebmann, it’s the customer who will benefi t from a more carefully edited assortment. “If it’s easier to shop, people will buy more.” A tighter control of the space also allows retailers to make room for their exclusive lines and respond to brewing trends, like natural products. However, it makes it more diffi cult for beauty fi rms to secure space for new innovations. Last year, Wal-Mart Stores Inc. had a push to reduce inventory, a move that was followed by several other mass retailers, which negatively affected some beauty fi rms’ sales in the second half of the year, such as Elizabeth Arden Inc., noted Gary Giblen, an analyst with Goldsmith & Harris. He added that during the company’s earnings call Aug. 14, Wal-Mart said it would inten- sify de-stocking efforts across all categories. During the call, Wal-Mart president and chief executive offi cer H. Lee Scott told analysts that “strong inventory management” was one of the management team’s top three priorities for the second half of the year. “De-stocking severely disrupted results in 2006, and I think we are going to see another round this year. When Wal-Mart does something, other retailers copy,” said Giblen. Beauty products, particularly fragrance, offer retailers high margins, but slow turns. “Where the rubber is really going to meet the road is (product) returns,” said Giblen, noting that drugstores generally have 100 percent return privileges. The return policies of drug chains have been blamed on the exit of many fl edgling com- panies from the mass market. Last week, Physicians Formula Holdings Inc. revised its outlook for the second half, citing a slowdown in consumer spending and “unexpected changes to replen- ishment order patterns.” Physicians Formula chief executive offi cer Ingrid Jackel said the recent shift has not resulted in any changes to the beauty fi rm’s in-store space, but that a certain — unnamed — retailer is using its existing inventory and not replenishing stock as frequently. “The drugstore chains historically have carried very heavy inventories, basically close to a year of inventory.” She added that Physicians Formula continues to generate double-digit sales growth across its retail accounts. Physicians Formula would not disclose the name of the retailer behind the abrupt change in inventory strategy, but several analysts said it was CVS, although Walgreens was also mentioned. CVS’s smaller store format requires tight editing of the beauty assortment. That said, several beauty vendors said CVS takes an aggressive, analyti- WWD, FRIDAY, AUGUST 24, 2007 9 WWD.COM WWD.COM Jeter’s Up to Bat With Second Driven Fragrance ith his second Avon fragrance, Driven Black, due out in December, Derek Jeter Jeter’s beauty routine remains relatively low maintenance, but he admits that his Wis showing fans just how driven he can be — both on and off the field. skin care line has created a whole new ball game. Before developing the products, Avon revealed the new fragrance to a select group of beauty editors last Thursday the Yankees shortstop had rarely used such a wide variety of treatments. at fragrance oil house Givaudan in Manhattan. “Skin care was defi nitely a learning process for me. I didn’t know much about it Since the debut of Jeter’s fi rst men’s fragrance, Driven, last November, Avon ex- before we came out with the line,” said Jeter. “It’s very important especially as you panded the Jeter brand portfolio to include a men’s skin care collection. get older. You have to take care of yourself some more.” Now, Driven Black is positioned to capture a more mysterious, intrigu- For his new fragrance, Jeter was heavily involved in the creative ing and sensual side of Jeter’s personality. process, working on everything from the scent to the packaging “I have a lot of different sides, but we’re only revealing two right and design. now,” joked Jeter. “Some people think I just slap my name on a bottle, but I’ve Lily DeStefano, Avon’s executive director of marketing of had everything to do with these fragrances, and I thank Avon U.S. fragrance, views the new fragrance as an edgier extension for such a fun experience,” said Jeter. of the Jeter brand. During the development phase, a Givaudan team fl ew “While Driven was more of a classic daytime fragrance, down to Jeter’s Tampa, Fla., home and had him sample sev- Driven Black is more of a nighttime fragrance, designed to be Derek Jeter eral fragrance notes to determine what he liked and disliked more sensual and intriguing, encouraging men to follow their with his new in a scent. instincts,” said DeStefano, who added that Driven is now the Driven Black “He defi nitely knew what he liked and didn’t like, which number-one fragrance in the company’s men’s portfolio. At fragrance. is really amazing for someone who hasn’t been trained the most recent FiFi Awards held in May, Driven won for Best and doesn’t smell on a regular basis,” said Ellen Molner,

Packaging among Men’s Popular Appeal. CENTENO TALAYA PHOTO BY Givaudan’s vice president of perfumery in the U.S. “The success of our fi rst fragrance was overwhelming for me One thing Jeter knew he wanted was a casual, but elegant because I didn’t know much about perfume, and I didn’t know fragrance that wasn’t too overwhelming. how people would react. But its success is the reason we’re here “I don’t like when people walk into a room, and everybody today with the second one,” said Jeter. smells them with an overpowering fragrance,” said Jeter. “The Set to launch in December through Avon’s 650,000 sales represen- only time I like to smell it is when I’m up close.” tatives, Driven Black was created by Givaudan perfumers and will be While teammates may tease him about his Avon beauty line, they sold for $26. Packaged in a translucent black glass with a silver cap, the often make personal requests in private. In fact, Avon sent Yankees play- woody oriental scent features top notes of Sicilian blood orange; middle notes of ers and coaches individual skin care sets this past spring. Italian bergamot, Calabrian mandarin and saffron, and bottom notes of white cedar, “They won’t ask when they’re all together, but when they’re by themselves, they Haitian vetiver, Australian sandalwood and Tamboti wood. Ancillary items including ask me for more,” said Jeter. an aftershave conditioner, $9.50, and body wash, $9, will launch next year in time for Driven Black will be supported with print and online campaigns, along with expo- Father’s Day. sure in Avon’s brochure and men’s catalogue. Driven Black will break in November Jeter gave the new fragrance a test run before fi nalizing it and made sure to get in men’s national magazines. According to DeStefano, Driven Black will also enjoy approval from the ladies — more specifi cally, the “lady family members” in his life. an “unprecedented sampling effort,” with fi ve million scent strips in magazines and “Once we narrowed it down to fi ve or six different versions, I got some input from more than 10 million samples distributed in Avon brochures. some women in my family,” Jeter joked. “They told me they liked it a lot.” — Michelle Edgar

sphere,” said Nonie Creme, Butter London’s creative director. “We are very much not a spa. We encourage our staff to engage the clients, have fun. This is a quick, Butter London Plans Expansion upbeat experience. There are no waterfalls.” The Sea-Tac location is 900 square feet and has six manicure-pedicure stations. By Rachel Brown But Butter London’s size fl exibility — it can move into spaces ranging from 200 to 1,000 square feet — enable it to spread easily. There are currently two locations, an BUTTER LONDON IS MORE THAN JUST A NAIL SALON. additional fi ve are expected in the next six months, and Muir projects the company It’s where flyers on a layover at Washington’s Sea-Tac International can turn to in fi ve years to reach 100 units across 15 metro markets seeded fi rst with airport for a manicure. Passengers-in-waiting at airports in San Diego and Sacramento are nail salons. “We are growing a business to be a national and international brand,” about to get a Butter London location, too. Or, if a manicure is better attained dur- said Muir. “It is not like Nonie and I are clubbing together and having a couple of ing lunch, Butter London will open at Starbucks’ headquarters in two months, and shots. We want this to be huge.” the chain is planning to plant itself at other corporate offices in the near future. To date, Muir reported Butter London has raised slightly under $2 million to Butter London’s business model is based on a standard retail concept: Put fund the company, largely from angel investors in the Seattle vicinity, and she units where the people are. In this case, the people are professionals — one in added the company would need to raise more to fuel its 2008 expansion. Muir said fi ve customers is a man — who seemingly have more discretionary income than that she and Creme are “signifi cant owners” and together hold more shares “than discretionary hours and, in the few minutes they can spare, seek out expedient any other unit holder.” She declined to disclose annual revenues, but said the Sea- services that don’t scrimp on the luxury to which they’ve Tac store “is outperforming expectations.” become accustomed. Full manicures, which are waterless and take 20 “We wanted to go for these unique, high-traffi c minutes, cost from $15 to $20, and full pedicures, which areas. After 9/11, with the increased time you had to be likewise are waterless and take 40 minutes, are from at the airport, it seemed like a natural fi t,” said Sasha $35 to $40. Nail lacquers start at $10, and nail treat- Muir, who moved to Seattle from London four years ment products are primarily between $15 and $25. At ago and founded Butter London in 2005. “Heathrow Butter London salons, product sales account for one- has had the most wonderful brand offerings and con- fi fth of revenues on average, although Muir indicated sumer shopping experiences for years. The American that the company aims for products to make up around airports are just at the beginning of understanding half of each unit’s take. how to service their passengers in an enjoyable and Nail polishes are another point of differentiation meaningful fashion.” for Butter London. The company touts that they are Airport units put Butter London at the crossroads of “3 free” or without formaldehyde, touene and dibutyl two burgeoning industries: nail care and airport concessions. Sea-Tac Butter London nail polishes. phthalate. Creme, a manicurist with an extensive editorial résu- estimates that an airport visitor spent on average of $10.35 on conces- mé (her work has been seen in Vogue, Vanity Fair and Elle, and sions before boarding a fl ight last year, an amount that’s up 16 percent on Kate Moss and Sadie Frost) designed the packaging along with from the year before and that’s projected to increase 10 to 12 percent this year. Muir, who described the casing as “a cheeky younger sister of Chanel.” Creme also Convenience is not all Butter London provides. Muir stressed that convenience handles the colors. can snag a customer once, but repeat patronage isn’t built on that factor alone. Butter London developed the domestically produced nail product line last year Butter London’s goal is to catch its customers on their return trips, entice them and kicked off wholesale distribution this year, when it is slated to enter 10 to 20 to buy the company’s nail products online upon their arrival back home and draw spa doors. Eventually, Muir said the wholesaling business could match or surpass them to Butter London spots outside airports as well. the nail salon business. The best-selling color at the moment is an opaque beige Butter London’s value proposition beyond convenience is its positioning be- called Yummy Mummy, and Creme mixes in fashion hues, such as a metallic gray tween spas and bare-bones neighborhood nail joints. “There is a huge polarization titled Chimney Sweep for fall-winter, to spice up the polish selection. in the [nail] market,” said Muir. “There are high-expense offerings, then you have “Nonie is known for her bespoke colors. To see people’s reaction to the color range, it low-end, low-quality offerings. There is a gap in the market to offer low-cost, high- is something you have to see to believe,” said Muir. “They are just these beautiful, vibrant quality services.” and fashion-forward [colors.] It is really unusual.” How does Butter London signal to consumers that it’s not among the two polar Nail care employees, dubbed nail consultants by Butter London, are trained opposite nail service camps? Muir, a business-savvy graduate of France’s Insead, for four days to two weeks, depending on their prior background in nails. Butter outlined that branding Butter London as “bringing London chic” to Americans is London has broken down nail service into steps to make training easier and en- integral to the strategy. The branding begins with the name Butter London, which sure customers receive the same treatment no matter what Butter London salon instantly suggests that the nail salon is different and more upscale than “X Nails” they go to. Muir and Creme are emphatic they want customers to be attracted to down the street. Butter London itself, not simply one technician who happens to buff nails well. The branding is continued inside the physical locations. They are made to re- “Every other part of their [customers’] lives, whether they are shopping or buy- semble London apothecaries with black lacquer fi xtures containing Georgian ac- ing latte, they are used to high-quality, quick customer service. The only compro- cents and a black chandelier. British rock music plays in the background. “The mise they usually make is their nail service,” said Muir. “We fi t the mold of what experience should be extremely British. The locations have a real sense of atmo- they look for in every other aspect of their life.” 10 WWD, FRIDAY, AUGUST 24, 2007

The HBA Report WWD.COM EShave Opens First Store, Plans Others NEW YORK — Men’s grooming brand eShave has opened its said she plans to add face cleanser to the eShave assortment first store here — and the 11-year-old firm has set its sights on in the near future, as well as foot cream and manicure and several more store openings in New York before expanding its pedicure kits. retail concept to other U.S. cities. EShave markets shaving creams, aftershaves, pre-shave oils “We’re planning to open 10 stores in the next fi ve years,” and shave soaps, and its white tea shaving cream is its bestsell- founder Danielle Malka said during an interview at the new lo- er. The brand also features razor handles, stands and brushes. cation last week. She added she would like to open Prices range from $13 for a 2-oz. shaving four stores here before expanding outside Gotham. cream to $28 for a shave soap. Brushes go for After scouting locations for about a year, $55, $90 and $140, while razor handles go for $60 Malka opened the niche brand’s inaugural store, and $85. More upscale shave sets, which include a 300-square-foot space at 993B First Ave., three a brush, stand and razor handle, run between weeks ago. The space formerly housed a luxury $190 and $350. watch retailer. EShave’s wholesale business includes dis- “I had the design of the store planned nine tribution in 15 countries. It is carried in about months ago,” she noted. “We found a space that 300 to 350 doors, chiefl y at boutiques and spas, matched the design.” including Hyatt spas and at Manhattan’s Core The cozy eShave store features a minimalist, Club and Nickel Spa. white motif, with shelves, a table and cabinets Malka described the eShave store’s clientele displaying the brand’s full assortment of 100-plus as a local mix of “older people” from Sutton products. “We kept the decor to a minimum so Place and “a lot of young couples with children. the product would pop,” said Malka. It has a neighborhood feel.” She said she believes the store She said of the store: “It will allow us to bring out prod- could generate $125,000 in sales through December. uct that’s been waiting in [development]. I have a couple of Additionally, Malka noted, she anticipates opening the things in mind I’ve been wanting to do forever, so with the brand’s second store in Greenwich Village in the spring. store, we’re going to be able to do these kinds of things.” She — Matthew W. Evans A look inside the eShave store.

comes, so they could be used by aestheticians and physicians at medi-spas as well.” Housed in white recyclable packaging with dark green print and gold accents, Antiqua Mixes Nature and Science the collection is designed to be simple and multifunctional. The company’s review board includes a plastic surgeon and a dermatologist. LOS ANGELES — With names like Purgemente, Tranquilare and Salutatio, and “We realized that many new product lines have too many sku’s, and it gets con- ingredients that include frankincense and myrrh, products in the new Antiqua fusing,” he said. “We wanted to overlap some of the goals — such as dealing with Prima line are designed to convey an almost Romanesque sensibility. But add in rosacea and acne — so a customer doesn’t have to have fi ve different products to components such as salicylic and hyaluronic acid, along with sleek packaging, help with one problem.” and the line is technologically modern. Upperman predicts key sellers to include Indulgens That’s the duality co-founders Jim Upperman and Laura Items from Foaming Cleanser, designed for sensitive and recovering skin, Root had in mind when they began formulating Antiqua Prima the Antiqua and which has shea butter, turmeric and honeysuckle as some over a year ago. Root, who had previously created a line called Prima line. of its key ingredients. Enlightenment Skincare, and Upperman, the former owner of a “Those who have tried it say it’s quite an experience because medi-spa in New Jersey, decided to combine their skills to come it’s very sensual, leaves the skin extremely clean and doesn’t up with a skin care range that merged the old with the new. strip it,” he said. He has also noticed an enthusiastic response to “We wanted to marry ancient botanicals with today’s bio- Purgemente Locale, an acne-spot treatment that contains salicyl- technology,” said Upperman, of the Myrtle Beach, S.C.-based ic acid, and Fortifi catio Eye Grande, an eye cream that contains company. “We really wanted to bring together the past and lemon, hesperidin, pea extract and hemp seed. There is also the the present. If you listen to what the general public is talking Clarifi catione Foaming Cleanser to exfoliate pores using salicyl- about, they are saying that their pantry offers them therapeutic ic acid, palmarosa, clary sage, rosemary and D-Cholic acid. The skin care solutions.” Fulfi llimente Cream is specifi cally for those who have undergone Upperman wanted to take that belief and infuse it with ef- chemical peels and microdermabrasion, and includes soybean fective modern-day ingredients. protein, thyme, mango and hyaluronic acid. The entire line is The 16-stockkeeping-unit line, which includes three profes- paraben-free, and prices average at around $15 at wholesale. sional products, is beginning to ship this month to medi-spas, “We made sure everything was in the mid-price point range destination spas, dermatological practices and plastic surger- and that we would take the crunch by not having the high profi t ies around the country, and will be in about 600 venues by the for the company but pushing the science and technology be- end of the year. hind the products,” said Upperman. “Having run a medical spa, I realized that there were some big holes in product He and Root are currently developing an additional 14 products for the body, hands, lines, that there was either a lot of fl uff, or things were strongly therapeutic. I felt there nails and feet, which he said would launch over the course of the next three years. needed to be some therapeutic products that would not interfere with treatment out- — Kavita Daswani

to the masses. According to Chavez, the company has additional plans to build the brand in traditional re- Nick Chavez Poised for Ulta Launch tail channels both in the U.S. and internationally. “We wanted to make our products more accessible elebrity hairstylist Nick Chavez is taking his hair ship with Ulta will increase business by 30 percent. to everybody,” said Chavez. “This will take us to next Ccare collection to the masses in a new retail part- After launching on QVC 13 years ago, Chavez level and will help us build awareness to the quality nership with Ulta, in addition to giving his line a began selling his hair care line in his Beverly Hills brand I created, which blends ancient traditions with makeover with new packaging. salon, which he opened 10 years ago. The brand now modern-day technology.” Chavez fi rst launched his collection under the has an international presence on QVC in Germany According to Chavez, the company also feels the Nick Chavez Perfect Plus brand and on Canadian shopping network new partnership with Ulta will help the brand attract name 13 years ago to fi ll a void in The Shopping Channel. He has new consumers. the market for products designed plans to launch on QVC in Japan “We’re hoping this attracts a new type of consum- for all hair types. this October. er who maybe were less familiar with my products “I made sure everything worked “With over 13 years on QVC, Nick since they didn’t shop on QVC,” said Chavez. across the board on all hair types has become a seasoned pro and has Educated on Native American pharmacology by from thin to thick hair,” said Chavez. placed himself among the top hair his Yaqui Indian grandmother, the Mexican hairstylist Starting next month, Chavez’s care brands available on QVC,” said incorporated ancient traditional remedies into his for-

repackaged line will be available THOMAS IANNACCONE PHOTO BY Allen Burke, QVC’s director of beau- mulas with herbs, fl owers and other plant ingredients. in 225 Ulta stores and on Ulta’s Web ty merchandising. “His passion for “Since I’m both Latino and Native American, I’d site. Among the 15 items to be in- his profession and the products are look to ingredients from ancient traditions in both cluded on shelves will be Chavez’s evident with each appearance.” cultures and mix it together with modern technol- trademark nourishing shampoos, The line contains more than ogy,” said Chavez. volumizing conditioners and thick- 100 styling, maintenance and en- Chavez’s styling talents can be traced back to his ening styling products. To support hancement products that are cat- days working on his father’s ranch grooming horses. the launch, Chavez will be making egorized in four different collec- Chavez was confi dent that if he could work with hors- personal appearances in stores in tions — Volumizing, Thickening, es’ manes, he could work with people’s hair as well. Chicago and Arizona to help edu- Nick Chavez’s new-look packaging. Nourishing and Amazon. Items “I didn’t have electric clippers, so I learned how to cate consumers on the line. range in price from $16 for the cut tails and inside noses and ears with my mother’s Although executives wouldn’t comment, industry Nourishing Shampoo to $23 for the Volumizing Extra scissors and made it look like it had just been done sources estimate the Nick Chavez Beverly Hills hair Hold Hairspray. with an electric clipper,” said Chavez. “I fi gured if I care franchise will generate more than $35 million by By making the line available in Ulta stores, could do horses, I could defi nitely do people.” the end of year. Chavez said he hopes the new partner- Chavez hopes to make his products more accessible — Michelle Edgar WWD, FRIDAY, AUGUST 24, 2007 11 WWD.COM Gap Sees Profi ts Gain 19% in Qtr. Continued from page one retains “talented people who have innovative approaches to our business.” In recent opportunities we have ahead of us.” years, Gap has been a revolving door of talent. Helped by cost reductions and better inventory management, Gap Inc. reported a “I will be spending a lot of time with people on the merchandising and design side, 19 percent increase in second-quarter net profi ts to $152 million, or 19 cents a diluted making sure the team knows we reward and appreciate them based on their creative share. That compares to $128 million, or 15 cents a diluted share, in the year-ago skill. We won’t shackle them,” he said. “We want to make sure they have all the tools quarter. and freedom to do what is right for the brand.” The last time Gap reported an earnings increase was in the second quarter of fi scal Murphy said it was too soon to list specifi c objectives, but added, “I am going to 2005, when the net rose 39 percent. Gross margins in the second quarter ended Aug. 4 continue to reinforce near-term priorities — the simplifi cation of the business, allow increased 34.3 percent, up 130 basis points. people the freedom to make decisions and be accountable for those decisions.” But Murphy clearly has his work cut out for him as sales Bob Fisher, a member of the board, son of Gap founder remained diffi cult at the group amid concerns about prod- Don Fisher and the former ceo who deserves the most cred- uct acceptance. Gap said summer merchandise got a “mixed it for the profi t improvement, said the second quarter was response in all divisions,” though with inventories down 2 marked by “solid progress stabilizing our business, stream- percent, the company said it feels comfortable with current lining our organization and importantly, hiring our new fall levels. chairman and chief executive offi cer.” Comparable-store sales were down 5 percent, while total He said the company has completed the majority of work- sales fell 1 percent to $3.69 billion, compared with $3.71 bil- force reductions, which occurred primarily at headquarters, lion for the year-go quarter. The difference between comps the former Forth & Towne division, and by not fi lling open and total sales was mostly due to online sales, which in- positions. In total, the company eliminated about 2,200 posi- creased 26 percent to $172 million, from $136 million. tions during the fi rst half of 2007, of which about one-third By division, Gap division sales were down 6 percent; were open positions. Annualized cost savings from fi lled po- Banana Republic was up 4 percent, and Old Navy was down sitions eliminated are expected to be about $100 million on 9 percent. a pre-tax basis. Jobs axed ranged from entry to senior levels, The company, which has been cutting staff and other with roughly two thirds in areas unrelated to stores and indi- expenses, upped its forecast of earnings per share on a viduals that touch most directly customer service, Gap said. Generally Accepted Accounting Principles basis for the year The retailer is cutting costs in other ways, including reduc- to 83 cents to 88 cents from its previous guidance of 76 cents ing corporate offi ce space by 16 percent. to 86 cents. On a non-GAAP basis, which would exclude ex- “We’ve seen a lot of change,” Fisher said. “We made solid penses associated with the discontinued Forth & Towne divi- progress on what we believe is necessary to get our business sion and other cuts, Gap forecasts 90 cents to 95 cents, com- on track. The majority of job reductions are behind us and pared to previous guidance of 80 cents to 90 cents. we continue to fi nd ways to simplify our business. Gap shares closed at $17.40 down 8 cents, or 0.46 percent, “We are comfortable with inventory levels.” but in after-hours trading rose 44 cents, or 2.53 percent, to Fisher said that at Gap Adult, woven tops and clean pants $17.84. performed well in the second quarter, and felt that was a In his fi rst Gap conference call since joining the $16 bil- sign that the brand was starting to resonate on the new tar- lion retailer, Murphy, a veteran retailer from Canada with get customer, which is the 24-to-34 age range, with a sweet a track record for turnarounds, spelled out priorities and spot in the late 20s. addressed concerns over his lack of experience in fashion, At Old Navy, ‘the ongoing priority is to stabilize the busi- assuring analysts that he would be sensitive to design and ness and improve merchandise margins,” said Fisher, while creative teams at Gap Inc. “The creative merchandising com- Banana Republic continues to perform well, with 4 percent ponent will continue to be unleashed and unfettered when it comp-store sales in the quarter. comes to bureaucracy,” he said. Executives on the call acknowledged He said he will be close to the merchan- some past disappointments, including in dising and design organizations, would 2006 making signifi cant incremental in- learn more about the fashion product de- I will be spending a lot of time with people on the vestments in marketing that did not get a velopment cycle, and insure that creativity “ return, mostly at Gap brand, and lacking is rewarded. merchandising and design side, making sure the color and “letting competitors get take that Creating “a more brand-centric struc- space,” as Fisher said, and having “confus- ture,” he said, is “the fi rst step in a long team knows we reward and appreciate them based ing over-assortments” of khaki pants and journey toward getting the business back denim, and targeting audiences that were to sustained improvement in earnings, on their creative skill. We won’t shackle them. too broad. Fisher said Gap will still be es- which is the goal we all have.” — Glenn Murphy,” Gap Inc. sentially a key item business. Murphy added that he’s “getting ground- Fisher said that in terms of ease of ed in the business,” having conducted 50 shopping and styling, “We’re 50 percent of town hall meetings from San Francisco to Miami and New York to Columbus, Ohio, the way there,” and added that “We are not going to know whether we have the proper and participating in 50 store tours in the last three and a half weeks. fl ow and strategy until we get into spring.” “We also had a number of deep dive sessions and meetings, with a real focus In the quarter, the company repurchased 11 million shares for $200 million, com- on the merchandising and design component of the business,” Murphy disclosed. pleting a $750 million share repurchase plan. “Performance depends on the quality of product and how on target it is….It’s been a An additional $1.5 billion share repurchase program was announced. Part of the good beginning.” plan includes purchasing $250 million in stock from members of the Fisher family The ceo stressed continuing to simplify the Gap businesses so the company is whose ownership represents approximately 34 percent of the company’s outstanding swifter to react to trends, reaches the right talent level, and even more important shares.

clients on custom-made things, and on Nov. 9 and 30, respectively. Equinox is in talks with Varvatos she is already planning her return in about developing a cobranded February. “I have been sketching in SLIM FAST: Nicolas Sarkozy may label, she said. Fashion Scoops my down time, and I am planning to have won a spot on Vanity Fair’s be back next season,” she said. “But 68th annual International Best- TEN SPOT: Veronique Branquinho, ROYAL FLUSH: Marc Jacobs is known fall and European trips down the I am planning on doing a smaller Dressed List, but he’s a tad more one of Antwerp, Belgium’s second- for his close rapport with artists road, the designer said it was best presentation, something more controversial when he doffs his shirt. generation fashion stars, is getting — and keen cultural instincts. To to pass on this round of fashion intimate rather than a big runway Joining Russian President Vladimir ready to blow out the candles for her wit: His collaboration with Japanese week. But he is already planning show. I will have a two-month-old Putin in this summer’s parade of house’s 10th birthday. To mark the artist Takashi Murakami for Louis his February show and a blowout baby, and just after coming out of topless heads of state, Sarkozy was milestone, Branquinho will unveil Vuitton leather goods has been a bash for the 25th anniversary of his hibernation, I want to ease back into captured paddling a canoe bare- a new project at her Paris show in bonanza for the French luxury giant. business. The designer is also busy it.” chested during his U.S. vacation, October: She’s guest editor of the Now Jacobs is plotting his next act, cheering on his partner, Michael and the photos were published next issue of the Flanders Institute’s WWD has learned. According to Cominotto, whose MIC men’s wear SPEAKING FRENCH: Olivier Theyskens earlier this month in Paris Match. A Magazine, which has also invited sources, Jacobs is teaming up with label recently debuted at Bergdorf of Nina Ricci can add one more But rival weekly L’Express has cried the likes of Yohji Yamamoto and Richard Prince, one of his favorite Goodman. Basso’s spring collection plume to his cap: lecturer. The foul, saying the magazine, headed Martin Margiela. What’s more, artists, and will unveil the results will be shown by Bismarck Phillips. designer has been tapped to give a by Sarkozy’s buddy Arnaud Lagardère, Antwerp’s fashion museum Momu at his Vuitton show during Paris talk in New York on Dec. 7 at New used Photoshop to minimize the will host a retrospective Branquinho Fashion Week in October. Asked SCHUR SABBATICAL: Those who have York’s French Institute Alliance French president’s love handles. exhibition in February. about the forthcoming collaboration, closely studied the New York Fashion Française as part of a monthlong Perhaps he ate too many hotdogs on Vuitton had no comment. Week calendar may have noticed series of fashion-related events. holiday in New Hampshire? PAINTED LOVE: Hedi Slimane is young label Michon Schur’s absence Pamela Golbin, curator of 20th- racking up art projects almost BASSO BOWS OUT: Dennis Basso has from the lineup. Designer Stephanie century and contemporary fashion VARVATOS FITNESS TEST: Equinox as fast as bids at a Sotheby’s decided to sit out the September Schur, who is due to give birth to her at Paris’ Museum of Fashion and Fitness has done so well with John contemporary auction. In late shows due to what he described as second child in November, has been Textiles, will chair a series of talks Varvatos’ Star USA label in its top November, the Almine Rech “scheduling confl icts.” But don’t on bed rest at her Santa Monica, and quiz Theyskens and other health clubs that the nationwide Gallery in Paris will host a new solo look for Basso on the beach Labor Calif., home, forcing her to nix the designers. She’s also rounded up chain is already lobbying the show by the former Dior Homme Day weekend. With a 2,000-square- delivery of her fall collection and the Hermès’ men’s wear designer, designer to develop a women’s designer. What’s more, Rech has foot store bowing at Atlantic City’s spring season altogether. But the Véronique Nichanian, and shoe guru version. The designer is said to tapped Slimane to curate her stand Pier at Caesars next month, a few designer, who has had four seasons Bruno Frisoni of Roger Vivier to give have one in the works, according to at the upcoming Frieze Art Fair, personal appearances set for this to date, is still able to work with talks at FIAF’s Florence Gould Hall retail buyer Karyn Riale. In addition, Oct. 11 to 14. 12 WWD, FRIDAY, AUGUST 24, 2007 WWD.COM Media/Advertising

called “Chic Meets Street,” will break during New York mood overall was uncertain among the staffers from Fashion Week. Staying with the tradition of using “real” Maxim, Blender and the remnants of Stuff, who sipped women as models, Lucky asked Scott Schuman, contributing cocktails in the Cellar Bar of the hotel. But Brownridge MEMO PAD editor at GQ, to shoot stylish women he found in New York, tried to ease some of that confusion: “I fi rst became from a painter to a public relations director. The campaign interested in this company in the past 16 months, when I QUIET MAKEOVER: While some magazines trumpet a is aimed at getting advertisers to see beyond the old thought it was a jewel,” he said. “I appreciate you being redesign or change in appearance, Lucky has been “shopping title” phrase, and instead, see the magazine “as here today, and you won’t be sorry.” Said one staffer, who conducting a quiet evolution on its cover and inside pages a reality-based title where editors create a community of shrugged his shoulders in summation of the day’s events: since the August 2006 issue. The front of the book was style and readers can participate in that,” Golinkin said. “It’s the Kent show.” — Stephanie D. Smith the fi rst to change, with handwriting-like type on pages Naturally, naysayers will see the campaign as a cry for such as “my foolproof outfi t,” nixed in favor of a more help, but they’d be wrong: from January through the July NASTY BUSINESS: Just two months into his role as structured font, along with a shift toward softer colors and issue, ad pages are up 4.5 percent compared with the president of Time Inc.’s Business and Financial Network, no text-boxes for “what I want now.” One month later, same period a year ago. Vivek Shah is said to be taking a hard look at the group’s editors got rid of the bold color borders on edit pages. France said the changes to the magazine are done, much-maligned structure, which merged the sales teams And while Kim France claimed Lucky but don’t expect that to last for too long. of Fortune, Fortune Small Business, Money, Business has never been “a hotly focus-grouped “We’ll keep changing and continue to 2.0 and CNNMoney.com. Several sources said Shah is magazine,” she still hedged her bets: evolve. We all get a little restless around looking at reemphasizing separate brands and possibly the editor in chief commissioned focus here.” — Amy Wicks restoring vertical selling structures to the magazines, groups to approve or challenge what was with sales teams and publishers dedicated to each title. happening. And, surprise, the research PARTY POOPER: As his co-workers prepped And one source contended Time Inc. is looking outside determined readers consider Lucky a for a four o’clock Thursday celebration of the company for a group-level executive with strong shopping magazine, but also look to it as the regime change at Alpha Media Group business contacts who would oversee print sales. (Shah a place to learn about style. (formerly Dennis Publishing), Maxim was previously president of the unit’s digital publishing Also predictably, the results of that editor in chief Jimmy Jellinek got word that division.) It is unclear how a reorganization would affect research soon landed on the cover. his services would no longer be needed. Michael Federle and Michael Dukmejian, formerly publishers Beginning in January, cover alterations Though Jellinek had planned to attend of Fortune and Money, respectively, and group publishers began appearing, with the box around the party as of Thursday morning, he under the current arrangement. A spokeswoman for the the phrase, “The Magazine About instead wished the staff bon voyage and group declined to comment on any reorganization plans. Shopping,” as the fi rst to go. A few walked out of the offi ces less than an Despite the uncertain future, when it comes to months later, a new, shortened logo hour before the festivities at the Bryant business media, it appears some things never change — appeared and in July, the top of the Park Hotel began. Jellinek was replaced especially as Condé Nast Portfolio elbows its way into the cover was updated to — of course by Men’s Journal editor James Kaminsky, fi eld. Word recently rippled through the sector that Forbes — “The Magazine About Shopping and who will take the title of editorial director was allegedly misleading media buyers by not breaking Style.” The September issue was the Lucky’s “Chic Meets Street” ad at the magazine as of Sept. 17. out the numbers for ForbesLife, its six-times-a-year fi rst cover to appear without the advertiser- campaign will launch during New Many Alpha staffers did not fi nd lifestyle magazine that is polybagged with the fortnightly. friendly cover fl ap. York Fashion Week. out about his departure until new chief That proved untrue: in terms of ad pages, ForbesLife is So far readers appear to approve what executive Kent Brownridge unveiled the manifestly counted as a supplement, and it doesn’t get its they’re seeing, as newsstand sales are up 11.9 percent change to about 100 party attendees. “What a blow, own circulation fi gures on the ABC statement because it to 250,843 and overall circulation rose 9.4 percent dude!” said one partier upon hearing the news. Silence isn’t distributed separately. during the fi rst half of this year, according to Publishers hung over the party as Brownridge announced Kaminsky’s The rumor was traced back to Shah. A spokeswoman Information Bureau. Through June, the only stumbling appointment, many not sure whether or not to applaud the for Time Inc.’s business and fi nance group confi rmed block seemed to be the May cover with Avril Lavigne. The news. But the appointment shouldn’t come as a shock — Shah had “mentioned Forbes” in a conversation with a magazine’s circulation was actually up 1.8 percent over he was executive editor at Maxim from 1999 to 2002 and senior media buyer, but only to question the Publishers May 2006; however, it was the smallest increase during worked with Brownridge at Wenner Media while serving as Information Bureau ad page metric as “an irrelevant the fi rst half of the year. “We do well when we feature an deputy managing editor at Rolling Stone. Kaminsky was measure of how our business is going,” given that it unpolarizing celebrity,” offered France, regarding Lavigne. also editorial director at Playboy. doesn’t represent Internet sales. Shah has reason to make The January issue, with Katherine Heigl, was the most The poaching from Brownridge’s former stomping that point. While CNNMoney is broadly heralded as a successful, up 24.9 percent from the January 2006 issue. grounds was also seen by some as a blow to Jann Wenner, success, Fortune’s ad pages were down 17.5 percent in While France has been busy tending to edit changes, Brownridge’s former boss and now publishing competitor. the fi rst half of the year, and in the same period, Money’s vice president and publisher Sandy Golinkin began seeking As one said, Wenner must be “pulling up the drawbridge pages declined 25.7 percent, Fortune Small Business’ by out her own market research more than a year ago. Her and gathering the troops” to prevent Brownridge from 18.2 percent and Business 2.0’s by 34.1 percent. (Forbes fi ndings have become part of Lucky’s latest ad campaign plucking others from the Wenner ranks. posted a decline of 3.4 percent in pages but reported a — its fi rst since the magazine launched. The campaign, As if the editor switch wasn’t unsettling enough, the revenue rise of 8.8 percent). — Irin Carmon

Vosges Goes Sweet and Chic on Madison Ann Taylor Fills Marketing Exec Slot By David Moin By Sharon Edelson oving fast to fill a key slot, AnnTaylor Stores Corp. NEW YORK — Vosges Haut-Chocolat has a new Mhas hired Robert J. Luzzi as chief marketing officer, Purple House, as the company calls its stores, a succeeding Elaine Blotz, who resigned last week, WWD 525-square-foot jewel box at 1100 Madison Avenue, has learned. near 83rd Street. Luzzi will be in charge of all aspects of marketing, visu- Vosges’ founder Katrina Markoff has been push- als and in-store environments for all of the corporation’s ing the lifestyle envelope well beyond chocolate brands, including one that’s currently under development with a collection of blouses and jackets by Sistahs and expected to launch next year. of Harlem, Skin lingerie, trenchcoats, dresses, tops He joins Ann Taylor on Sept. 10. Aside from developing and T-shirts, all in Vosges’ signature lavender and strategies to elevate the profi le of the company’s brands, purple. In the past, Markoff has sold handbags Luzzi’s initial focus will be on its new beauty collection, with the Vosges logo and leather jackets by Dr. set to launch in stores in mid-November, in time for holi- Romanelli, who has been a frequent collaborator. The new Madison Avenue boutique is a study in white. day selling. Ann Taylor has partnered with veteran beauty The new Madison Avenue unit is a study in white, models, have dressed Alicia Keys and Erykah Badu. executive Robin Burns on the project. decorated with architectural artifacts retrieved from Susan Beischel, the creator of Skin, a sophisti- Luzzi will report to Kay Krill, president and chief ex- Paris markets. The store exudes an air of Forties glam- cated lingerie collection made with luxurious fab- ecutive offi cer. “Bob is a wonderfully talented marketing our with a dark parquet fl oors, a marble table, chande- rics, designed a lavender cotton dress with a tiered executive who will bring real insight and creativity to all liers that look like they were dipped in marshmallow hem for Vosges. “The clothing is the essence of the of our marketing efforts,” Krill said in a statement. “We and massive white étagères that are lit from within. brand,” Markoff said. are confi dent that, under his leadership, our marketing The store features cafe service and an ice cream bar. Markoff is active on the environmental front. will begin to connect more emotionally with our clients “We’re going to launch sweet and savory pairings,” “This is a sustainable lifestyle business,” she said. and further strengthen our brands.” said Markoff. “Paninis with cheese and chocolate.” “All of our shirts are organic. Everything in our fac- Luzzi was executive vice president, chief merchandis- Markoff, who seems to be more free spirit than tory is powered by renewable energy.” ing offi cer and creative director at New York & Company grounded businesswoman, follows her whims, Vosges is building a green manufacturing facility Inc., which he joined in 2003. Before that, he was with the which are usually exotic. Her explorations of vari- in Chicago, which will be operational in 2009. “It will Estée Lauder Cos. Inc. for 10 years, rising to the role of ous parts of the world have led to the Red Fire Bar have an organic rooftop garden,” Markoff said. “There senior vice president of creative design and advertising made with Mexican ancho chili powder, Ceylon will be exhibition space for artists and a theater. We’re worldwide. Earlier in his career, he operated his own de- cinnamon and dark chocolate, the Black Pearl Bar going to have an artist-in-residence program.” sign fi rm serving the fragrance, home textile, entertain- with wasabi, ginger, black sesame seeds and dark Markoff said the new Vosges store is a “jumping- ment and publishing industries. chocolate and the ill-advised Mo’s Bacon Bar. off point for doing more store concepts in New York.” Earlier this month, Ann Taylor named Mark Markoff met Sistahs of Harlem, the design team There’s an existing Vosges unit on Spring Street in Mendelson, former chief merchandising offi cer at Jones of Carmia Marshall and Carmen Webber, through a SoHo, and the chocolate is sold at Bergdorf Goodman. Apparel Group Inc., as president of the new brand, which mentoring program; Vosges is sponsoring Sistahs. Markoff, who is ruled by a need for exploration, is yet to be named. Mendelson also reports to Krill. Marshall and Webber, who are known for reworking developed a chocolate sensory collection with 24 Ann Taylor is scheduled to report second-quarter garments in creative ways, designed for Vosges blous- bars and small vials of spices and fl avors. The set, results today, which are expected to be positive. Wall es with cuffs for sleeves ($125) and short-sleeve pin- which comes with a blindfold and can be turned Street has been expecting 48 cents in earnings per share stripe jackets ($250). The designers, who are former into a parlor game, costs $350. for the quarter. PHOTO BY KYLE ERICKSEN KYLE PHOTO BY WWD, FRIDAY, AUGUST 24, 2007 13 WWD.COM Japan Fashion Week Gains Overseas Attention

By Koji Hirano Looks from the previous chapter of Japan Fashion Week. TOKYO — The fifth Japan Fashion Week kicks off here Wednesday with 38 brands holding runway shows for their spring collections. The shows will run through Sept. 5, and other events during this period will include the trade show Rooms, featuring European designers; the 2007 New Designer Fashion Grand Prix Final Selection, and special events for consum- ers. Tokyo Girls Collection, an emerging fashion event for young consumers that is expected to attract 24,000 visitors, will be held Sept. 2, although this is not an offi cial event of JFW. The main venue for JFW will be the new landmark building Tokyo Midtown in the Roppongi area, with other locations including Roppongi Academyhills and Harajuku Quest Hall. Nobuyuki Ota, public relations director of JFW, said there will be a higher quality of design and more excitement at JFW than before. “Inquiries are not limited to the Asian countries, but also from Europe and the U.S.,” said Ota. “People in the industries from overseas pay high attention to the collections.” The March shows drew 22,200 visitors, including 160 journalists from over- seas countries such as the United States, South Korea, China, Taiwan, England, Italy, France, Spain, Holland, Russia, Australia, Argentina and Israel. Sixty buy- ers from the U.S., South Korea, Taiwan, China, Russia and Italy also saw the collections. “Higher numbers are expected this time,” said Ota. The Japan External Trade Organization backs up the event by offering in- formation to overseas visitors. “There are more inquiries from overseas than before. Buyers from high-end boutiques in the West Coast, for example,” said Ota. “People are now talking about JFW.” The Japanese brand Somarta has gained buzz after attending Tokyo Fashion Week twice. “Thanks to the show at the venue which is free for the selected young designers, I was able to express my design world and expand my busi- ness, ” said Tamae Hirokawa, design- er of the brand. “For the collection this time, I have already received inquiries from overseas.” Japanese punk and Gothic cha- risma brand h.NAOTO will hold a fashion show on the offi cial sched- ule. Tokyo’s kawaii, or cute, brands such as mercibeaucoups, and Ne- net generally attract foreign buyers, while cool and energetic brands such as Dresscamp and Guts Dynamite Cabaret are expected to generate at- tention, according to observers. The growing attention being paid to JFW by overseas buyers stems partly from the strength of the euro against the yen, according to retailers and executives at Japanese fashion brands, but Ota said uniqueness of design from Japan is the main factor. “Price doesn’t matter. People buy at any price if they want to buy. European brands are everywhere now, and buyers in the world are looking for something new. The Japanese fashion industry can offer them that,” said Ota. “From hand- rolled sushi to movies to manga com- ics, many cultural things from Japan have been prevailing throughout the world. Just like fi lm director Steven Spielberg learned from the mov- and Industry for the last fi ve chapters, but the funding runs out in March ies of Japanese fi lm director Akira 2008. For the shows after that JFW next spring, “we are making action to Kurosawa, for example, the new gain the budget. generation in the world started to “The Japanese administration started to understand that content indus- share same cultural viewpoints with try, including fashion design, has become important just like our steel and those in Japan.” electric appliance industries,” said Ota. “The soft contents industry in Japan According to Ota, one of the most is estimated at about 9 trillion yen [$78.3 billion at current exchange] or as exciting events during the week big as the nation’s agricultural industries,” commented Ota. will be an exhibition entitled “New Creators Met Together in Europe,” which will be held from Thursday From hand-rolled sushi to movies to manga through Sept. 5 at 21_21 Design Sight “ inside Tokyo Midtown. Featured de- comics, many cultural things from Japan have signers are Hui Hui, Mikiosakabe, Poesie, Stereotypes, Taro Horiuchi been prevailing throughout the world. and writtenafterwards. “Some of them have academ- —” Nobuyuki Ota ic backgrounds in St. Martins [in London] or Antwerp [in Belgium], Ota also is looking for more sponsors from outside the fashion industry. but for designers from overseas, “This is the event to incubate the new generation after Comme des Garçons. Tokyo has become an important Young designers are actually growing. For a bigger and better JFW, more option when selecting the venue,” investment will be required,” said Ota. “In a time when analysts and share- said Ota. “And there is a tendency holders require instant paybacks even from the fashion industries, we have to show their design works in Tokyo to understand that bringing up fashion designers takes a long time.” compared with other fashion- and Rooms, the fashion joint exhibition, will showcase about 240 brands in- design-oriented cities in the world cluding independent domestic labels as well as those from the French Prêt- considering that there are good ven- à-Porter Association and the Brazilian Association of Fashion Designers. ues and chances here and also op- “Rooms wants to invite more buyers from overseas, and holding the trade portunities to do business in Asia.” show during JFW in the same Roppongi area means a lot,” said Mika Sato, For those European designers, ex- director of Rooms. The exhibition will take place at Roppongi Academyhills hibition space is allocated instead of Wednesday to Aug. 31. a slot on the fashion show calendar Tokyo Girls Collection will gather 24,000 fashion-conscious young women so more people can see the brands. at the Saitama Super Arena to show the latest looks for fall from domes- JFW has been fi nancially backed tic brands, said Fumitaro Ohama, chief executive offi cer and webmaster of by the Ministry of Economy, Trade YONEYAMA NOBUYOSHI PHOTOS BY Xavel Inc., the company producing the event. 14 WWD, FRIDAY, AUGUST 24, 2007 WWD.COM

The Tesla Roadster electric car, the Mechanical Advantage Tourniquet stops bleeding in 10 seconds, the Danish Ordrup School encourages creativity and Cover stools’ package-free design (below). International Designers Vying to Top the Index By Rosemary Feitelberg has created smoking paper that darkens to a shade of black as the smoker inhales. Designers competing for the Home prize also show ingenuity. For the sake of con- esthetically pleasing as they may be — and many are nothing short of sleek — the servation, Gabriel Tan’s and Wendy Chua’s Airwash is a waterless washing machine AIndex design award nominees are far from fanciful. that removes stains from garments in a few minutes by using negative ions, compressed This year’s theme is Design to Improve Life, with prototypes aiming to address air and deodorants. Belgian Alain Berteau created the Cover stool, which claims to be everyday issues such as driving while talking on a cell phone to the fi rst piece of package-free furniture. Brazilian Akemi Tahara came up with Shelter weightier ones like dealing with land-mine injuries or curbing Origami, a foldable paper shelter for the refugees; Croatia’s Ines Vlahovi and Mladen the world’s oil and clean water shortages. Oreši created Wing, a personal and portable windmill, and Romanian Andrei Bojor Today in Copenhagen, Index prizes, considered to be the top came up with SpaceSaver, an all-in-one bathroom sink and washing machine. design awards worldwide, valued at $135,464, will be awarded In the Work category, Janne Kyttanen’s Freedom of Creation, which con- for fi ve categories: Body, Home, Work, Play and Community. sists of virtually stored products that can be e-mailed for 3-D Finalists span the seven continents and were initially drawn production, is vying for the prize, as is Virginia San Fratello’s from 188 recommendations by the world’s leading design insti- Hydro Wall, a water storage unit that stores warmth and coolness. tutions. The jurors had their work cut out for them consider- Fellow American Jeremiah Sullivan had professional and recre- ing the far-reaching nature of the top picks. ational divers who work around sharks in mind when he created The Body category alone deals with an array of crucial issues. his Neptunic C Suit, which is designed to fend off shark bites. For those who have been mutilated in land-mine explosions, Danes Rosan Bosch and Rune Fjord Jense are in the running for Canada’s Sébastien Dubois has developed Mobility for Each One, Ordrup School, a school design intended to promote differenti- a lightweight prosthetic that costs only $8 to produce compared ated teaching and creative thinking among children. Even more with the thousands of dollars that is the going rate for such a device. lighthearted is the Play category, where an American-made electric Finland’s Tell No One Design Collective has created Mukana, comput- sports car called the Tesla Roadster is among the top picks. erized clothing for the visually impaired equipped with voice recognition soft- In the Community category, fi nalists include Ben Dromey’s 6Lockers, 24-hour ware that allows wearers to identify their location and provide public trans- accessible storage facilities for the homeless to stow away belongings in shelters portation timetables. A team of American designers developed Mechanical where staff can access lockers to leave food or mail. Junggi Sung’s and Minkyung Advantage Tourniquet, or MAT, which allows victims of war or natural disasters Kim’s Uniceffriend is a pen donating system for underdeveloped countries and to stop blood fl ow in less than 10 seconds and potentially save lives. includes two postcards to allow the donor to write a message to the recipient. Another fi nalist for the Body category is Italian designer Chiara Sandri, To rev up interest in the Index awards, an exhibition is on display in Copenhagen’s whose biodegradable TrackLess footwear is designed to offset the 200,000 pairs of 17th-century Kongens Nytorv square. The 106 top-nominated designs are in oversize bathing shoes and sandals that are discarded in Italy each week. Made from a large transparent acrylic spheres. As an indication that fi ne design knows no restrictions, the herbaceous plant whose fruit is soft and spongy, these kicks are geared for tropical work is shown 24 hours a day and video footage about the various creations can be found and subtropical climates where the plant grows abundantly. Production would pro- in the square’s information center. About 70 volunteer seniors, nicknamed “design gran- vide a source of revenue for poor nations. Alberto Meda’s and Francisco Gomez Paz’s nies,” are tour guides for the exhibition, which will be open until Sept. 23. Solar Bottle, which uses solar disinfection, is another contender. The pair is trying to Instead of hosting a black-tie dinner for award winners, organizers are opting for some- help out the one-sixth of the world’s population without access to safe drinking water thing decidedly more Danish. Tonight, Index’s dinner will take place in 30 private homes and prevent some of the 2.2 million deaths annually caused by diarrhea. China’s Li around Copenhagen. After all, Denmark is the place that offers visitors Dining With Danes, Jin wants smokers to think twice before polishing off their cigarettes. The designer the chance to enjoy traditional fare in a native’s well-appointed home for a nominal fee. On The Drawing Board Fiat 500 Revved Up and Ready to Roll SECOND VERSE: A quarter-century after Storefront staged its fi rst public art event — a orget the ear-splitting roar of the 479-cc engine from 1957 or An early ad. 26-day celebration featuring performances by Fthe requisite pressure on the accelerator to shift gears — the 26 New York-based artists — the downtown redesigned Fiat 500 is as cool as it is technologically advanced. gallery is preparing for a revised version. The new car was unveiled in Fiat’s home city of Turin, Italy, on Storefront founders Kyong Park and R.L. July 4, exactly 50 years after the legendary auto created ripples Seltman, along with artist Arleen Schloss, in the car market with its rotund shape and proletarian price organized the original extravaganza, which of 465,000 lire (an average monthly salary at the time was about was called Performance A-Z and served as a 60,000 lire). Fiat made it less costly for Italians to trade in their blueprint for the gallery’s future programming. Vespas for shelter and warmth in winter months. Park wrote before the 1982 occasion, “I’m convinced that when revisiting a retro style like the 500, “Storefront supports the idea that art and we should not bypass the original concept,” said Luca De Meo, chief executive offi cer of design have the potential and responsibility Fiat Auto. “When it was launched, the 500 was the car of the people, the fi rst car for many to affect public policies, which infl uence the South Korean architect Minsuk Cho’s families and women. It was popular and accessible.” quality of life and the future of all cities.” pavilion for Performance Z-A. Aggressive and sporty, the 500 has kept its iconic curves and accessibility (average This time, the event is called Performance Z-A. It will get under way Sept. 21 in price is 10,000 euros, or $14,000 at current exchange), but replaced its erstwhile bare- Petrosino Park in Manhattan’s Kenmare Square in a sphere-like pavilion designed by bones dashboard to accommodate a navigation system plus Bluetooth and iPod plugs. South Korean architect Minsuk Cho. Stalker Lab, Dan Graham, Barbara Held, Jill Majid “The world has changed and we adapted the 500 to satisfy people’s technological and Tomas Saraceno will be among the artists holding concerts, open discussions, needs,” said the 39-year-old De Meo. screenings and performances in the futuristic space. About four years ago, all the company’s staple styles — the Panda, the Grande Punto, the Performance Z-A will also mark the 40th anniversary of art programming in New Croma and the Bravo — underwent signifi cant makeovers. York parks. Installations by a wide range of up-and-coming and well-known artists De Meo said Fiat expects to sell 2.2 million cars in 2007, proving it is on the upswing after will set up installations in various city parks. a period punctuated by the death of its charismatic leader, Gianni Agnelli, in January 2003. — R.F. Sales projections for the 500, which will be produced in Tychy, Poland, are of 120,000 units the fi rst year. Between 1957 and 1975, 3.8 mil- LONDON CALLING: The work of six up-and-coming British architectural fi rms is on The updated lion 500 cars sold all over Italy and it was a favorite display at “New Practices London,” a new exhibition at the Judith and Walter Hunt Fiat 500. of the likes of Federico Fellini and Alberto Sordi. gallery at the Center for Architecture in Manhattan. The spotlight is on 6a Architects, The new 500 is 7 centimeters longer than its pre- AOC Architecture, Carmody Groarke, DRDH Architects, Ullmayer Sylvester Architects decessor, and the engine has been moved under the and Witherford Watson Mann Architects. Organized by American Institute of hood (it was in the back); options include a turbo Architect’s New York chapter in conjunction with the Architecture Foundation in diesel 1,300-cc multijet and two fuel versions. London, the show is meant to be a bit of an exchange program along the lines of “Fiat has had its ups and downs, but now we are Terence Riley’s exhibition of emerging Spanish architects at the Museum of Modern doing better. We also want to be accepted as a cool Art in New York last year. The globe-trotting continues next year when the AFL hosts brand and we strongly believe that the 500 will trans- a handful of New York architects for a series of lectures starting Jan. 23. form us into that,” said De Meo. — R.F. — Alessandra Ilari WWD, FRIDAY, AUGUST 24, 2007 15 WWD.COM Prints and Colors Lead Chicago’s StyleMax

By Beth Wilson es, including some fused with a bit of people really affected aren’t going to be shimmer or shine. my shoppers,” she said. mbracing more flattering silhouettes Buyers, like Bakke and others, re- Retailers, meanwhile, also encoun- Epresented with energetic colors and sponded to the new trends, said Susan tered emerging talent from the Chicago prints, Midwestern retailers shopped McCullough, senior vice president for area during a Sunday afternoon meet- with optimism at Chicago’s StyleMax at apparel for Merchandise Mart Properties and-greet with a handful of apparel the Merchandise Mart, Aug. 11 to 14. Inc. and accessories designers who will be “I was really pleased with everything “It’s something stores know they can showcased in the annual “Chicago Is… I found,” said Susan A. Bakke, owner of sell,” she said. “There’s nothing but posi- Red Hot!” fashion show in October. The the specialty store Chauette in Belleville, tive energy in the market. People get seven designers were grouped together Wis. The retailer applauded trends such jazzed when there is newness.” at the market as the Red Hot Chicago! as three-quarter-length sleeves, bell Caryn Mead Kelly, owner of the Emerging Designer Incubator presented sleeves and higher-waisted pants. specialty store Melly in Edina, Minn., by Chicago’s Apparel Industry Board. “They’re not so low cut,” she said of also noticed the less-trendy trend. One of the incubator participants, Heidi the market’s assortment of trousers. “I “Everyone’s being pretty conservative,” Hess, a knitwear designer located in both think they are a lot more fl attering for a she said, as she shopped for what she Miami and Chicago, picked up fi ve new lot more women. The styles still look chic called conservative resortwear, picking accounts at the market, showing a soft, and I found a lot of things in that moder- up twill Bermuda shorts and capris along twisted strap metallic minidress and ate $60 to $70 [retail] range.” with strapless seersucker and eyelet tops matching belted wrap sweater and open She ordered embroidered shirts, from Vineyard Vines. lace wrap in silver, gold, raspberry and sweaters and jackets from DB Sport as Sandy Taylor, who plans to open black, wholesaling for $160 to $230. well as sweaters with bell sleeves and a 3,000-square-foot boutique called Retailers also could move back and fake fur collars. She also liked plaid CityWear in downtown La Crosse, Wis., forth from StyleMax, held on the Mart’s cropped jackets, houndstooth long this October, looked to stock her new seventh fl oor, to the men’s wear market coats and red double-breasted styles store with higher-waisted, boot-cut Chicago Collective held on the eighth from Luii. stretch denim with contrast stitching fl oor. For spring, prints and color appeared from David Kahn and tank tops, short- McCullough said retailers and manu- in every category of the market from sleeve, three-quarter-sleeve and turtle- facturers appreciate the two market graphic, geometric prints and art-to- neck tops in jewel tone colors as well as dates coincide given that more vendors wear to exaggerated fl orals and prints white, black and gray from Three Dots. make both men’s and women’s apparel that are blurred, said Susan Glick, vice For Love and Liberty stands to be- and more men’s and women’s specialty president for fashion and marketing for come a strong dress resource for the bou- CARL F. ROBERT PHOTO BY shops seem to open in Chicago every Merchandise Mart Properties Inc., which tique, given that Taylor ordered a variety Lively prints and colors were evident at the year. operates StyleMax. of styles from the line, including a short StyleMax fashion show. As a result, market organizers are The dress market still remains strong, black tank dress with sequins, a long- considering whether to blend some of she said, noting that some vendors that sleeve black silk minidress with beading to launch a business, but she hopes cus- the men’s and women’s apparel on the typically do not produce dresses intro- at the hem, a gray-blue sleeveless burnt- tomers will not be deterred by the rising same fl oor. duced styles at StyleMax. out velvet short dress and a long black costs. “I don’t think this trend is going to Glick also noticed knits with such a satin wrap skirt with buckle details. “It is a scary time to open with the stop,” McCullough noted. “I think it’s only light touch they almost looked like blous- Taylor admitted it’s an uncertain time economy the way it is, but I think the going to continue.”

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Designer Head $125K to $175K BOE. Technical Designer to $50K. Min 1 year Current exp in girls 4-16. Exp w/ Wal- exp in tech packages of outerwear to far Mart or Target or Kmart private label east. Chinese or Korean biling. helpful req’d. Supervise 3. [email protected] not nec. Mdtn co. [email protected] Opportunity for Investment and Licensing Design of Athletic Wear Brand. [email protected] JEWELRY DESIGNER Well known Fashion Jewelry Co. seeks Vice President Lingerie Distributor/Agent a Designer specializing in fashion BEAD Sales/Fragrance Division Professional Business Australian Lingerie Co. seeks an exp’d. MANIPULATIONS. Must have good Prestigious brands: CREED/ Hanae distributor or agent in U.S.A. or Canada. fashion & color sense. Fun, fast paced Mori seeks VP, Manhattan based. Industry Development Manager, U.S. Please E-mail: bassoni188 @hotmail.com environment. Excellent opportunity! leader, young and fast growing interna- SALES ASSISTANT Seeking experienced, business-minded Visit us at: www.bassonilingerie.com E-mail: [email protected] tional company, Headquarter in Paris. Major womens better sportswear (brand- Competitive salary & benefits. professional to further increase brand MANAGER ed & private label) co. seeks customer visibility and recognition with the pro- Requirements: 10 years in Senior Mgt service/receptionist/sales assistant for fessional market. Develop and expand Distribution Manager in fragrances. North American travel. branded business. Must be articulate, or- relationships within the entertainment Experienced hands on professional Position reports to President & CEO. ganized, computer literate & highly mo- industry; cultivate brand legitimacy needed for immediate opening in Central Email: [email protected] tivated. and leadership in the make up artistry NJ. Must have WMS experience and be Email Resume: [email protected] field. Train, coach, and manage a team DESIGN ASST. • JEWELRY proficient in Excel. E-mail resume to of make up specialists. Candidate must Fashion Jewelry Co. seeking a Design [email protected]. EOE. be self-motivated, and possess excellent Assistant for Head Designer. Min. 3 yrs. communication skills. Make up artistry design exp. Photoshop knowledge a plus. a must. NYC based with national travel. CAD-GRAPHICS-FABRIC PRINTING Candidate must be a flexible individual, PLANNER/Retail Analyst/$80-100K Great opportunity for growth & excel- U4ia-Photoshp-Illustr: 212 679 6400 able to work in a fast paced environment. NYC import co. w/ very successful lent benefit package. Send resume to: www.sanodesignservices.com Excellent opportunity! E-mail resume: branded Jr. & Contemp. lines. Req: 4+ [email protected] [email protected] yrs. exp. as an analyst in apparel. Pref. w/ Federated expr. (wholesale or retail). COMPUTER PATTERN SERVICE Excl. analytical & comm. skills. New designers welcome! DESIGNER E-mail resume: [email protected] Fit pattern & sample making. Fax 917-591-2521 Tel 914-337-3660 More than 30 years of experience. Assistant Designer Call: 212-398-1121 / [email protected] Major Intimate Apparel manufacturer has an excellent opportunity. Candi- date should be organized, detail orient- Production Coordinator Defi ning style. ed & a team player w/great follow-up Seeking well organized candidate with PATTERNS, SAMPLES, skills. Responsibilities include daily Children’s Sleepwear Production exp to Delivering results. PRODUCTIONS communication with overseas offices/ handle all phases of Prod. Must have All lines, Any styles. Fine Fast Service. factories, process artwork, sampling/ an understanding of FR (Flame Re- Call Sherry 212-719-0622. production packages, and assisting tardant) regulations and be able to designer in all phases of development. travel overseas. Must also be detailed- Call 800-423-3314 or e-mail Luxury Home Fragrance Collection Construction knowledge & ability to oriented w/strong follow-up skills and create flat sketches in Illustrator req’d. computer literacy. Responsibilities in- fpclassifi [email protected] Seeking dynamic, flexible commission Showrooms & Lofts PATTERNS, SAMPLES, Must be able to meet deadlines and clude tracking all aspects of Production based regional Salespeople in Dallas, L.A., BWAY 7TH AVE SIDE STREETS PRODUCTIONS multitask. Email or fax resume to: from approvals through final packing/ to advertise. and Chicago for high end candle collec- Great ’New’ Office Space Avail [email protected] delivery. E-mail resume with sal reqs tion. E-mail: [email protected] ADAMS & CO. 212-679-5500 Full service shop to the trade. Fine fast work. 212-869-2699. (212) 842-4050 EOE to [email protected] EOE. beeai]eeZ" h[WZiX[jj[h$ F>EJEI8O=KO7HE9>

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