RALPH’S TOUGHER TARGETS/2 ECONOMY PINCHES LEGWEAR/10 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • July 28, 2008 • $2.00 Accessories/Innerwear/Legwear Fashion’s First Aid Kit

WHAT WORKS IN THE TOUGHEST TIMES — times like now? WWD interviewed more than 30 business experts, industry leaders, veterans and academics for their advice on how fashion companies can survive, strengthen and push toward a full recovery. Here, and on pages 16 to 24, the Fashion First Aid plan.

1 MANAGE COSTS 2 BE CONSERVATIVE WITH SALES 3 BE A LEADER 4 PROVIDE MORE VALUE 5 DELIVER CUSTOMER SERVICE 6 REALLOCATE SPACE 7 RETIME SHIPMENTS 8 EXPAND STRATEGICALLY 9 FOLLOW DEMOGRAPHICS 10 EXPLOIT TECHNOLOGY PHOTO BY VOLKER MOEHRKE/ZEFA/CORBIS PHOTO BY 2 WWD, MONDAY, JULY 28, 2008 WWD.COM Chaiken to Leave New York By Julee Kaplan Francisco to work out of her headquarters at 116 WWDMONDAY haiken is done with New New Montgomery. She Accessories/Innerwear/Legwear CYork. will also look into joining Julie Chaiken, chief execu- a multi-line showroom FASHION tive offi cer, designer and owner in New York, in order Charming eyelets and classic gingham checks are among the novelties of the contemporary firm she to keep some sales pres- that give spring’s new lingerie a fresh girly appeal. founded in 1994, will close her ence there. She plans to 6 New York showroom next month show her collections in and move all operations to San New York during fashion GENERAL Francisco, where the company week, but will not have Business experts, industry leaders and academics offer advice on how is based. Chaiken said that since a show this September 1 fashion fi rms can survive, strengthen and push toward full recovery. she lives in San Francisco and since “there is just too has two small children, she made much going on with the EYE: Vanity Fair’s cocktail party on the roof of Louis Vuitton’s Rodeo the decision to close her New move.” 4 Drive boutique drew many of the starlets featured in its Hollywood issue. York office in order to spend Chaiken said that ACCESSORIES: With a 20 percent hike in handbag sales the last two more time near her home. although only a small 8 seasons, footwear designer René Caovilla is investing in the category. “It just got to be too much amount of her produc- traveling and I didn’t want to be tion is done in New York LEGWEAR: The legwear market is being impacted by rising oil prices away from my family anymore,” currently, she plans to 10 and material costs, particularly because of its use of synthetic fabrics. she said. “The beauty of owning move everything to Asia. INNERWEAR: Manufacturers are tightening their seat belts for a bumpy your own company is that I am “Being on the West 14 ride at next week’s spring market in New York. able to make these decisions.” Coast, we are closer to The New York showroom, Asia, so it will be easier A spring look Classifi ed Advertisements...... 37-39 located at 580 Broadway, hous- for us, and more cost ef- from Chaiken. es about 18 employees, all of fective to move every- remain the brand’s signature, To e-mail reporters and editors at WWD, the address is fi rstname. whom are expected to leave thing to Asia,” she said. today the label offers a full col- [email protected], using the individual’s name. the company. Chaiken said that Chaiken started the com- lection of sportswear, outer- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT while the details are still being pany 14 years ago as Chaiken wear, swimwear, maternity and ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 196, NO. 19. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with worked out, she doesn’t think & Capone in San Francisco, evening wear. Chaiken is sold one additional issue in January, October and December, two additional issues in March, April, May, June, August and any employee will want to make along with former co-owner in about 400 stores globally, November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of the move to the West Coast. Pam Capone. The company including Saks Fifth Avenue, Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Chaiken said she plans became known for its “best- Macy’s West, Bloomingdale’s Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/ to hire more people in San fi tting pants.” While the pants and Nordstrom. Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit Lauren’s Pay Package Altered www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, alph Lauren is going to have to work harder the chairman, which were reduced to 75,000 RSUs please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other for his bonus and restricted stock options from 100,000, will be performance- rather than Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list R available to carefully screened companies that offer products and services that we believe would interest our readers. next year. time-based, the fi ling said. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA In a regulatory fi ling with the Securities and It was disclosed in the proxy statement fi led by 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, Exchange Commission, Polo Ralph Lauren Corp. the company earlier this month that Lauren has a 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 said that its chairman and chief executive offi cer, new fi ve-year employment agreement that began MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR starting in fi scal 2009, will be entitled to a bonus on March 30. His new base salary is $1.25 million, CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR “only if 80 percent, rather than 50 percent, of the a $250,000 raise. DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY performance target had been achieved.” The fi ling In the proxy, the company said Lauren’s total A SELF-ADDRESSED STAMPED ENVELOPE. said the changes put Lauren’s compensation ar- compensation for the year ended March 29 was rangements in line with those of “other members $34.2 million, which included among other com- MONDAY: New York Spring II Apparel Market (through of senior management.” pensation a base salary of $1 million, no bonus Aug. 8). Lauren’s annual stock option grants were re- and stock awards of $16.2 million. The total repre- Alberto-Culver Co. reports third-quarter sales and duced to 100,000 stock options from 150,000, ac- sents a 32 percent gain from the prior year, when earnings. cording to the fi ling. In addition, the term for his total compensation was $25.9 million. stock options was reduced to seven years from 10 Last year, Polo’s net income increased 4.7 per- TUESDAY: The Conference Board releases the years, in line with the term for all management cent, to $419.8 million, or $3.99 a diluted share, as Consumer Confidence Index for July. stock options. net revenues grew 13.6 percent to $4.88 billion. Coach Inc. reports fourth-quarter and year-end sales Additionally, restricted stock units granted to — Vicki M. Young and earnings. Hanesbrands Inc. and Under Armour Inc. report second-quarter sales and earnings.

WEDNESDAY: Avon Products Inc. and Jones Apparel Som, NexCen Working to Resolve Issues Group report second-quarter sales and earnings.

By Marc Karimzadeh reached for comment. THURSDAY: CVS Caremark Corp. reports second-quar- The source believes ter sales and earnings. NEW YORK — The Bill Blass that Som would “defi- saga continues. nitely” continue at Blass FRIDAY: The U.S. Labor Department releases the July According to a source close should NexCen be able employment report. to the negotiations, Peter Som, to sell the brand to an creative director at Bill Blass, owner that can support SUNDAY: Accessories Circuit, AccessoriesTheShow, is still working with NexCen the business in a way that Curve Expo, D&A, FAME, Intermezzo Collections, Brands Inc. to determine the can make it a success. COMING THIS WEEK Lingerie Americas, Moda Manhattan, Nouveau best way to proceed with the As reported, the de- Collective and The Tender, New York (through Aug. 5). spring 2009 collection. signer label has been Benelux Fashion Fair, Antwerp, Belgium (through Contrary to reports, the on the selling block Aug. 4). source said Som can get out of for months, a move Pure London and Margin London (through Aug. 5). his contract at any time, and prompted in part by his resignation last week did angry shareholders at not come as a result of the de- its cash-strapped par- cision to forego a runway show ent NexCen. It is be- this September. lieved that NexCen is Issues between Som and getting close to mak- In Brief Blass’ owners have been brew- ing a deal. Windsong ing for a while, with NexCen Brands LLC and Hilco ● GILMARTIN JOINS DUCKWALL: Jane Gilmartin, an alumnus unable to financially sup- Consumer Capital are of Ross Stores Inc.’ dd’s Discount division who was recently se- port the line in the way Som said to be looking at nior vice president and chief merchandising officer of Levitz envisions is required for a Blass. Arnold Simon’s Furniture, has joined Duckwall-ALCO Stores Inc. in the new post Collection business. According Designs from the Bill Blass spring 2008 Designer Licensing of executive vice president and chief operating officer. She will be to sources, NexCen’s fi nancial collection. Holdings, the Blass responsible for merchandising, marketing, store presentation and constraints has meant that jeanswear licensee supply chain management and report to Lawrence Zigerelli, who much of the talent Som brought NexCen to find a solution, and owner of 10 percent of was named president and chief executive officer of Abilene, Kan.- in hasn’t been paid in months. which could involve a spring the Blass trademark, is also based Duckwall earlier this month. Zigerelli was ceo of Levitz, Som himself is said to be collection to be shown to re- reportedly interested, as are which has since been liquidated, during much of Gilmartin’s upset at the situation, but tailers only in the company the Iconix Brand Group and tenure at the store. She’s also held executive posts with Service willing to collaborate with showroom. Som couldn’t be Phillips-Van Heusen Corp. Merchandise, Bed Bath & Beyond and Linens-N-Things.

4 WWD, MONDAY, JULY 28, 2008 WWD.COM

Rufus Albemarle blows out the candles on his birthday cake. TUNING IN UNLESS YOU WERE HANGING OUT AT THE BEVERLY Wilshire hotel circa 1991, you probably don’t know Alicia Witt is an accomplished classically trained pianist. The fl ame- tressed actress is usually recognized for her roles in fi lms like “Mr. Holland’s Opus,” “Two Weeks Notice” and, most recently, a stint on “Law & Order: Criminal Intent.” But before the Worchester, Mass., native made it in Hollywood, she was tickling the ivories in the Los Angeles hotel at age 16 for guests like George Burns and Kenny Rogers. Now, the actress is writing and performing her own “pop, folk, alternative” songs at venues in L.A., Philadelphia and New York. Tonight, she will take the stage at Joe’s Pub with a full band, including frequent collaborator Jeff Fiorello. Witt, 32, chatted with WWD about the competitive pianist circuit, her current infl uences and big tippers.

WWD: Why this new live-performance streak? Alicia Witt: It’s something I’ve always wanted to do. I’ve been writing songs since I was 18.…This actually got jump-started Cameron on my birthday [Aug. 21] last year. They have this live blues Richardson at jam night at the Cutting Room [owned by “Law & Order” co- Emma Stone Louis Vuitton. star Chris Noth] and I just decided to show up. I thought it would be a nice way to start my birthday. At midnight, I took the stage and sang “Bewitched, Bothered and Bewildered.” I ended up meeting some people who, for whatever reason, had this feeling that we should do some music together.

WWD: Who are some of your inspirations? Fair Ladies A.W.: Both Paul Simon and Elton John are Last Wednesday night’s Vanity Fair cocktail party on defi nitely infl uences of mine. They’re the roof of Louis Vuitton’s Rodeo Drive boutique obviously both piano-driven musicians. drew many of the starlets featured in the magazine’s And some others are Billy Joel, Fiona Hollywood issue. “If an actress isn’t fi lming right Apple and Rufus Wainwright. now, then she’s at this party,” observed one talent manager. Indeed, many of the faces who graced the magazine’s Hollywood issue had wrapped projects that are hitting the multiplex’s soon: Emma Stone has both “The My parents… House Bunny” and “The Rocker” out next month; Paula Patton “ has “Swing Vote,” Amber Heard was promoting couldn’t really “Pineapple Express” at Comic-Con, and Emma Roberts’ new fl ick “Wild Child” will debut across the pond. afford a piano. Newly engaged co-host Amy Adams, who appears in “Doubt” this fall, was sporting a daring ensemble — We were at least for her. “At fi rst, the words ‘backless halter jumpsuit’ can be intimidating, but I warmed to lucky to end it quickly,” she said. As for young actress Stone, she was Anne Dexter-Jones in up getting a marveling at her sudden reversal of fortune. Giambattista Valli. “Last year at this time, I was sitting in Baldwin piano my apartment eating Lean Pockets, and now I’m at things like this,” she said. lent to us. I Meanwhile, Rufus Albemarle bid ta-ta for now to New York with a small party at played, like, Bungalow 8. Publicists Nadine Johnson and Vanessa von Bismarck hosted the four hours a affair, which doubled as a 43rd birthday celebration for the towering Brit. “It’s day. the least we could do after he came to ” all of our dinners,” Bismarck said. “Now we’re down one straight man.” WWD: You were seven when Over the course of the evening, you started playing the piano. Albemarle, who is moving to London (where How did you fi rst get into it? wife Sally and son Augustus have lived since A.W.: My parents knew I was 2005), chatted up guests including Gigi into music and they felt that I Mortimer, Eva Jeanbart-Lorenzotti and Elise should be taking piano lessons, Øverland. What will he miss most about the Big but they couldn’t really afford a Apple? “The multiple opportunities,” he said piano. We were lucky to end up mysteriously, not wishing to elaborate. getting a Baldwin piano lent to Of course, some pals weren’t fooled by the us. I played, like, four hours a day birthday cake or the long goodbyes. “I don’t and I started entering classical think he’s actually leaving,” said Ann Dexter- ▲ Paula Patton Elise Øverland in piano competitions and actually Jones. “I think it’s just a ruse for a party.” in Louis Vuitton. her own design. went on several national ones. It was something I took really seriously. ▲ Amy Adams in WWD: And then when you moved to Louis Vuitton. L.A. at 16 to pursue acting, you were supporting yourself as a pianist. A.W.: It was basically the same sort of idea as somebody who has moved to ▲ Alicia Witt L.A. to be an actor and waits tables.

WWD: Except a bit more glamorous… A.W.: It didn’t feel glamorous, but it was certainly a lot more free because I didn’t have to focus on anything, like remembering people’s drink orders and being polite. I could just get lost in my own world. I’d been playing in restaurants since I was 10 to help pay for piano lessons, so I actually had a big repertoire by then of all sorts of standards, big band songs, jazz numbers and show tunes.

WWD: Any popular requests? A.W.: There were people who would get really drunk and start Kat doing sing-alongs and get escorted out of the place. There was Dennings one guy who kept giving me $100 bills to play Elvis songs. in Marc I thought that was great until the host came up and said, Jacobs “You’ve played fi ve Elvis songs in a row and not everyone here Marley Shelton at Louis Eva Jeanbart- is giving $100 bills. You have to stop with the Elvis.” But I at Louis Vuitton. Vuitton. Lorenzotti made $500 bucks that night.

VUITTON PARTY PHOTOS BY DONATO SARDELLA; ALBEMARLE PARTY BY STEVE EICHNER; WITT BY LESTER COHEN/WIREIMAGE STEVE EICHNER; WITT BY BY SARDELLA; ALBEMARLE PARTY DONATO PHOTOS BY VUITTON PARTY — Vanessa Lawrence ACIC_WWD_8_08_final.ai 7/17/08 2:01:20 PM 6 WWD, MONDAY, JULY 28, 2008

Betsey Johnson Intimates’ cotton baby-doll dress.

Check Charming eyelets and classic gingham checks give spring’s new lingerie a fresh girly appeal. — Bobbi Queen It Out WWD, MONDAY, JULY 28, 2008 7 WWD.COM

Agent Provocateur’s cotton bra worn with Lizalde by Ricky Lizalde’s cotton cropped pants.

Irene’s lace and crochet-edged, NK Romance’s cotton voile camisole and Hanro’s cotton pants. silk jacket for Silhouettes over Above: Fifi Chachnil’s cotton and polyamide bra and corset Jezebel’s nylon, rayon and worn with Only Hearts cotton pants with nylon lace trim. spandex bra with Lavit Lingerie’s polyamide and spandex panties. FACTO; MAKEUP BY MIZU FOR SUSAN PRICE INC.; FASHION ASSISTANT: CHRISTINA ROPERTI ASSISTANT: MIZU FOR SUSAN PRICE INC.; FASHION MAKEUP BY FACTO; PHOTOGRAPHED BY KYLE ERICKSEN AT SORREL RIVER RANCH RESORT AND SPA; MODEL: NINA KEITA/WILHELMINA; HAIR BY NELSON VERCHER FOR DE NELSON VERCHER HAIR BY MODEL: NINA KEITA/WILHELMINA; AND SPA; RESORT SORREL RIVER RANCH ERICKSEN AT KYLE BY PHOTOGRAPHED 8 WWD, MONDAY, JULY 28, 2008 WWD.COM

Accessories Report The interior of Uterqüe. Caovilla Steps Ahead With Bags, Stores

By Luisa Zargani said. “They are confident Designs from René Caovilla. enough to wear high heels MILAN — Leveraging a 20 percent in- and jeweled shoes dur- crease in its handbags division over the ing the day, [unlike] many Inditex Bows Uterqüe last two seasons, footwear designer René Europeans.” Caovilla is investing in the category with A store in Bal Harbour, an expanded, dedicated design team. Fla., will open in the fall, Accessories Concept “Handbags are working really well for us and another is set for 2011 MADRID — Inditex Group, owner of and our customers are increasingly asking at Las Vegas’ new $9 billion fast-fashion chain Zara, launched an ac- us also for this accessory,” said Caovilla. CityCenter mall. cessories format this month with five si- More daywear models will be added Units in Saudi Arabia and multaneous store openings — two each in to the brand’s iconic feather and Moscow will open this year Madrid and Barcelona, and one location Swarovski styles. and boutiques in New Delhi, in La Coruña, the site of company head- “We realized our handbags have as Mumbai and Bangalore in quarters in northwestern Spain. much draw as our shoes,” said Giorgia India are slated for 2009. Called Uterqüe, meaning “one and Caovilla, company vice president and Caovilla said the fi rm worked the other” or “both” in Latin, the name daughter of the founder. on expanding its wholesale refers to the bond between ready-to-wear The designer said the handbags will distribution two years ago, and accessories. be in line with the fi nely crafted footwear but shifted the focus to its “They complement each other,” said line, made by hand in Italy and detailed own retail units. That said, Manuel Santos, brand designer during a with precious embellishments. The aver- Caovilla added that depart- walk-through of the store in Madrid. age shoe price retails upward of $1,000. With the new format, featuring a At the same time, the company is complete line of fashion accessories, in- venturing into new markets and ex- cluding handbags, small leather goods, panding its retail network around the footwear, costume jewelry, scarves and world. In July, the brand opened its fi rst sunglasses, Inditex is “creating a whole store in Venice. new market. So far, accessories have only “At long last, we fi nally found the been a hint at Zara,” Santos said. position we wanted and it wasn’t easy,” “The merchandise is classic and the said Caovilla. store interiors [oak woods tinted black and Located next to Hermès, Chanel and creamy colors] remind me of a tradition- Louis Vuitton, the store is steps from the al Nineties’ boutique with an industrial city’s main square, the postcard staple celebrities, such as Uma Thurman, touch,” he said. “We wanted to create a Piazza San Marco. Carrie Underwood or Felicity very feminine, cozy, elegant and contempo- “It took patience and a dose of good Huffman, who have worn styles rary environment that doesn’t intimidate. luck,” said the designer, whose compa- from the brand. The stores and the product have to be un- ny is based in Fiesso d’Artico, between The Venice store is modeled derstandable” to the consumer. Padua and Venice. The brand’s Venice boutique. as a 1700s Venetian palazzo, with The commercial philosophy behind By 2010, Caovilla plans 20 stores tapestries, tables with gold-leaf motives, the new format is to provide “the best around the world. In addition to Venice, ment stores such as Saks Fifth Avenue brocade upholstering and Chinese vases quality product at affordable prices be- there are boutiques in Milan, Rome, and Neiman Marcus are considered ex- — all authentic pieces that belong to the cause everything that looks good doesn’t Paris, London, Tokyo, Dubai, Beverly panding distribution of the brand. designer’s personal collection. have to be expensive,” Santos said. Hills, Palm Beach, Fla., and Porto Cervo, “My dream is to open a store in New Next year, Caovilla will open a muse- Prices range from $32 for a patent leath- on Italy’s island of Sardinia. The compa- York,” she said, adding that the company um at the fi rm’s headquarters, display- er cosmetics case to $316 for more sophisti- ny opened its second U.S. store on Rodeo does “not want to expand too much, but ing 3,000 archival pieces. A book on the cated handbag styles, and from $79 to $205 Drive in Beverly Hills this spring. Giorgia rather remain a niche label.” designer’s work and inspirations is also for Spanish-made shoes and boots. Caovilla said the boutique offered great Caovilla said the company cannot set for publication in 2009, a big year for Another 20 to 30 stores will bow by visibility and had strong sell-throughs. compete with giant conglomerates in the company, as Caovilla said he will yearend, including rollouts in Portugal “American customers get us and they advertising spend, and rather relies on launch a costume jewelry collection and and Greece. are more daring than Europeans,” she word of mouth — and a little help from a fragrance. — Barbara Barker

very nondescript and really does An M.C.L. men’s diamond necklace set with a rare channel. The line is available on kay.com and not allow men to represent too necklace. padparadscha sapphire at its at select Kay Jewelers stores. much diversity in their wardrobe,” center — a 37.92-carat stone FINDINGS Campbell said. “I had noticed with a pinkish-orange color. SNAP, CRACKLE AND POP: Selfridges in London also that I was receiving “You could sit for a long time is showcasing a selection of handbags and IF THE SHOE FITS: requests for men’s from my and look at that stone,” said clutch purses from Bulgari’s fall collection in Architect Zaha female clients for their husbands, Susy Korb, creative director of a space in its ground-fl oor accessories hall. Hadid is exploring as well as requests from men who Harry Winston, adding that many The area carries a different label’s accessories new mediums, had seen the women’s product of the pieces are inspired by the every two months. The Bulgari collection including fashion. lines, so I knew that the market jewelry designer AV Shinde’s includes heavily beaded clutch bags and Hadid was had interest for something new.” creations and sketches for the will retail for as much as 3,500 pounds, or commissioned by The M.C.L. men’s collection, house from the Fifties and $6,900. All the Bulgari pieces sold in the Brazilian footwear which hit Bergdorf Goodman Men’s Sixties. After London, the exhibit space will be exclusive to Selfridges for their brand Melissa, known store this month, incorporates goes to Hawaii, New York, Paris two months in the store. for its plastic shoes, blackened silver cuff links with and Costa Mesa, Calif. to create limited edition brightly colored enamel and styles from the synthetic. a money clip embossed and MOM’S INSPIRATION: Jane Seymour The shoe evokes Hadid’s enameled to look like an exerts as much creativity on screen buildings, with fl uid lines as exotic skin. There also are as she does on canvas. The straps and a rounded toe. Melissa + Zaha Hadid gem-studded charms in the actress, who has painted for “The project with Melissa Collection shoes. shapes of crosses, shields the last 17 years and has had is about creating something and the like. exhibits in museums around fun and new — something that feels good,” “For men I wanted to capture the the world, recently took her Hadid said. “The design engages with the excitement of getting a new toy and art to the next level when she fl uid organic contours of the body and the I decided to look back into my past painted a motif of interlocking asymmetric quality conveys an inherent sense of and use toys as the basic inspiration hearts that are open at each Tinsley Mortimer on Samantha Thavasa’s movement, evoking a continuous transformation. for the collection,” Laurenza said. A ring from Open Hearts end. Inspired by her mother. new homepage. We designed the shoes to emerge from the Prices range from $125 to by Jane Seymour. who recently died, she was ground and climb up the foot and leg with a soft $1,000. moved to create a diamond TINSLEY TOWN: As if the public won’t get elegant movement. There is an pendant using the same shape. enough of Tinsley Mortimer with her upcoming implicit sense of lightness that MR. INCREDIBLE: The “My mother always told me that when life stint on “Gossip Girl” and her real-life portrayal blurs the boundary between body Incredibles by Harry is tough, help someone else and they’ll help of gal-about-town, now fans can check on her and object.” Winston, a collection of 11 you,” Seymour said of the Open Hearts motif. latest doings on samanthathavasausa.com, The Melissa + Zaha Hadid statement pieces inspired After wearing her design on “Dancing the Web site for the Japan-based accessories Collection will hit stores such as by the jewelry house’s With the Stars,” Kay Jewelers approached fi rm for which Mortimer designs a capsule Opening Ceremony in November archives, is taking a world Seymour to do a collection. The Open Hearts collection. Having launched this month, the site and sell for about $350. tour. The pieces already by Jane Seymour collection offers the motif in features not only the latest styles and sales, but have traveled to the fi rm’s myriad styles, such as a sterling silver ring or also an “About Tinsley Mortimer” section. A MAN’S TAKE: M.C.L. designer London boutique. They a diamond earring. Prices range from $39 for “We wanted to create a primary source of Matthew Campbell Laurenza’s include a glittering necklace a silver piece to $1,400 for a gold necklace information for our U.S. customers, informing fi rst passion is women’s jewelry, set entirely with 77 round with diamonds. consumers on the brand, our continuous but he has a soft spot for his Earrings from and marquise diamonds, “I never tried to do this, it just happened to relationship with Tinsley Mortimer and our wide own gender. Harry Winston. with a 12-carat marquise me,” said the actress, whose next fi lm, “Dear assortment of products,” said Tobias Buschmann, “So much of men’s jewelry is diamond and a delicate Prudence,” will air soon on the Hallmark director of U.S. operations for Samantha Thavasa. for

Presenting the Raf¬ for Tibi limited edition Spring 2009 handbag collection

2008 DATES: LOCATION: VENUE: July 28 - 31 Las Vegas The Collections at WSA, Venetian Hotel, suite 5121 Aug 3 - 5 New York ENK Accessories Circuit, Jacob Javits Center, booth 8110 Aug 6 - 8 New York FFANY Collections, Raf¬ New York Showroom *by appointment only

Sept 5 - 12 New York New York Fashion Week, Raf¬ New York Showroom *by appointment only

Sept 16 - 18 New York ENK Coterie/Sole Commerce, Jacob Javits Center or Pier 94 Sept 17 - 19 Milan MICAM, Rho Fiera, Pavilion 2V, Stand 8

For showroom appointments and sales inquiries, please contact: Tel: +1 (212) 609.1195 x 4 / Fax: +1 (646) 292.4150 e: [email protected] For press inquiries, please contact: Cristina Dennstedt Tel: +1 (646) 292.5223 / Fax: +1 (646) 292.4113 e: [email protected]

www.rafe.com 10 WWD, MONDAY, JULY 28, 2008 WWD.COM Legwear Report Oil Prices Cause Slippery Slope for Vendors By Caroline Tell A Hansel from as polylactic acid, which is made Basel sock. from corn and other natural plant egwear sales are trending up, but the sources. But even if companies bring Lmarket is feeling the economic pinch down their costs on materials, daily from rising energy and materials costs, expenditures are still challenged by particularly because of the dominance oil prices. of synthetic fabrics in the product. “It’s not so much the input them- Manufacturers are focusing on inno- selves, but also logistics,” Kay said. vative ways to absorb the higher expens- “Are they shipping by air, cargo ship? es without passing them on to customers. Companies need to incorporate these In some cases, companies are looking to variances into their cost structure. bring production that moved overseas They need to start leveraging technol- back to the U.S. to trim costs. ogy, streamlining their manufacturing Ed Miccinati, design director for process and incorporating sustainable StockinGirl, a hosiery firm based in practices to reduce energy costs and Stamford, Conn., said the price of nylon carbon footprints.” has soared in the last year. Susan Reese, vice president at “Nylon yarn is made from petro- Soxland, said the company has grown leum and the price of nylon yarn used more conservative and is working to for making sheer and opaque tights has save money in its day-to-day practices. more than doubled,” Miccinati said. “Our costs have increased because “And we’re not talking about something everything is made on machines and that was very expensive to begin with. A to run a machine, you need oil,” Reese 15-denier nylon stocking prior to the oil said. “You need to transport all these crisis cost about $2.53 to make. Now it’s Here and above: different bits and pieces to make a sock over $1.25 more.” Behind the scenes of and, again, we need oil. So our cost of Mark Hierbaum, chief executive offi - hosiery production. manufacturing has increased and we’ve cer of DML Marketing Group, which pro- tried to hold prices, but it’s been tough. duces hosiery for Legale, Laura Ashley We run a very tight ship and it’s just got- and Kensie, has seen increases in mate- ten a bit tighter. We’re scrutinizing every rial costs over the last two years of 15 to decision being made. We’re changing 20 percent. hands and fi nding new deals and ship- “Raw materials have defi nitely be- ping modes and methods. Everywhere come more costly,” Hierbaum said. we can save, we’re trying to.” “Microfi ber nylon, in particular, has gone up more so than cotton, as it’s Wayne Lederman, president of Leg synthetic. Fibers with lots of chemicals are prone to heavy increases. Our Resource Inc., which manufactures margins have gone down, but we want to make products the way they should legwear for Betsey Johnson and Anne be made. We’re not going to reconstruct it using lesser materials than we Klein, is cutting his shipping costs by think the product requires. We’re just watching costs closely.” bringing the majority of his production Sally Kay, president and chief executive officer of The Hosiery back to the U.S. Sixty percent of Leg Association, said fi rms are experimenting with fi ber alternatives, such Resource product is made at the fi rm’s North Carolina plant. A year ago, only 20 percent was produced domestically. “The cost of producing goods overseas is not much less than it is in the U.S.,” Lederman said. “You’ll see less and less people doing it now because the advantage is not as great as it once was. The problem is, if you don’t have a facility in the U.S., you don’t have the availability to do that. In our U.S. facility, we’ve purchased new state-of-the-art product equipment and we have also implemented a new state-of-the-art inventory management computer system to more effi ciently handle an increase of domestic product. It’s giving us the ability to provide customers with very little price increases.” Lederman said producing legwear domestically also helped him give customers better turnaround and reordering times. Hannah Byun, designer of Hansel from Basel, a small legwear fi rm in Los Angeles, is trying to bring production closer to home. “I’m researching other places outside of Asia because of freight and gas and materials that are all so high right now,” Byun said. “I am thinking of doing it domestically or maybe in Mexico, an alterna- tive option that is within trucking areas versus ocean freight.” John Flynn, vice president of sales for the U.S. sector of Levante, the Italy-based legwear brand, said the fi rm has had a 15 to 20 per- cent increase in costs because of the weakness of the dollar against the euro. He said U.S. prices should be more infl ated, but the com- pany is committed to the market and is holding tight on increases. “It’s had an effect in Italy,” Flynn said. “They can’t charge the prices they’d like to charge to turn a normal profi t, so they have to settle for less margin. Will there be a breaking point? I think we’re a little bit away from that, but if things keep going down and they’re not raising prices, eventually that will catch up. It’s a balancing act. It’s maintain- ing profi tability without pricing themselves out of the U.S. market.” In an effort to cut costs, Flynn works out of a temporary show- room only during seasonal markets or meets with buyers at hotels. “You have to say, ‘OK, we have a problem, prices are going up and we need to control expenses,’” Flynn said. “So you look at everything you spend and fi nd creative, inventive ways to do it. You have to moni- tor your assortment and see what’s working and what isn’t. It’s making people work smarter and look at things totally out of the box.” Miccinati said he cut back daily offi ce costs, such as free lunch for his employees. Lederman is planning to install more effi cient lighting in his North Carolina facility and is researching whether to turn the building into a geothermal space that includes solar panels on the roof. “It’s just one more way to control other costs and therefore ab- sorb the increase in raw materials that are unavoidable right now,” Lederman said. But Kay isn’t worried. She noted that the need for hosiery as both a commodity and fashion accessory will keep consumers buying even during diffi cult economic times. “Hosiery is a very cost-effective way to transform an outfi t versus buying a new one,” Kay said. “And there’s never been so many fash- ionable products at such a variety of retail channels of distribution. Last year, we saw a 36 percent increase in tight sales and socks have shown tremendous growth. There is now a sock for every type of sport out there. I always say, ‘There are six billion people who live on this earth, so there are six billion [pairs of] feet and legs.’”

12 WWD, MONDAY, JULY 28, 2008

Innerwear Report Israel’s Maria Lavignia’s Thinking Outside the Boudoir design. By Dana Covit riumph International, based in Munich, has a 120-year love affair with intimate apparel. Now Tthe company, which has annual wholesale sales in excess of $2.5 billion, is spreading its linge- rie-loving gospel to the academic world by launching the Triumph Inspiration Award. The award is a worldwide design competition that concludes Thursday in Beijing, about a week before the Summer Olympics kick off in the Chinese capital. The aim of the competition is for students from 31 countries and 70 design schools to fi nd a “fresh perspective” on innerwear, ac- cording to Triumph offi cials. With the TIA, Triumph hopes to bring attention to the creative and conceptual design of inti- mate apparel. The fi rst round of eliminations was recently completed and contest organizers are primed for the Beijing fi nals that will feature the fi nalists’ showpieces: products that demonstrate Hong Kong’s their vision, and in many cases, their fl air for the dramatic. As an example, Australian fi nalist Cyrana Mok Kimberly Lim, who considers her piece a “mixture of both robotic and seductive,” cites motion Wing-Yan with pictures “Metropolis,” “Galaxina” and “Terminator 3” as inspirations for her creation. her design.

It is easy to isolate ourselves in our creations. The Belgium’s “ Berit de TIA invites us to open our eyes and minds. Geyter’s design. — Noemi Ben” Nun, French fi nalist The fi rst-place winner will have the opportunity to adapt his or her piece into a commercially viable item, which Triumph said will be featured in select Triumph stores worldwide. Two run- ners-up will receive monetary prizes of 10,000 and 5,000 euros, respectively, or $15,600 and $7,800 at current exchange. Judging the student designs is a panel, which includes photographer Ellen von Unwerth, model Helena Christensen, Sarah Lerfel of Colette and design duo Viktor Horsting and Rolf Snoeren of Viktor & Rolf. For French fi nalist Noemi Ben Nun, the TIA presents an opportunity for students to leave their comfort zones. “It is easy to isolate ourselves in our creations,” she said. “The TIA invites us to open our eyes and minds, and get stimulation from the world.” Students have been taking the competition seriously, according to Merve Liebelt, Triumph’s communications director. “The level of creativity and also in many cases the technical perfection, has been much higher than we dared hope for,” said Liebelt, adding he has confi dence in the TIA program’s future. Kimberly Even though the winner’s fi nal product will eventually make its way into stores, Liebelt insists Lim of that the aim of future contests will remain, as the award’s moniker suggests, to inspire design Australia’s students. It also serves as a reminder to the international intimates community that “creative and design. unique pieces can be absolutely wearable.”

Untitled-4 1 7/23/08 1:57:10 PM WWD, MONDAY, JULY 28, 2008 13 WWD.COM Green Receives Vision Award From Pelosi nnerwear designer and busi- INTIMATE NOTES From left: Mary Green with her husband, Steven Swig, and Nancy and Paul Pelosi. Iness entrepreneur Mary Green received the Vision Award at TEFRON TAPS LIVNEH: Adi Livneh, chief executive offi cer the annual Retinitis Pigmentosa of Global-Wire Ltd., a producer and marketer of electrical International Society’s presenta- conductors, has been named ceo of Tefron Ltd., the tion at the Beverly Hilton Hotel in Misgave, Israel-based manufacturer specializing in Beverly Hills. seamless innerwear and activewear. Livneh, who will join Previous recipients of the award, the fi rm Sept. 1, succeeds Yos Shiran, who has resigned presented to Green by House as ceo and a director of the company. Shiran served as Speaker Nancy Pelosi (D., Calif.), ceo since 2000. include Sen. Barack Obama (D., From 2001 to 2007, Livneh was ceo of Kitan Ill.), Sen. Hillary Clinton (D., N.Y.), Textile Industries, an Israeli home textile developer and Steven Spielberg, Katie Couric, manufacturer that sells its products in North America, Josie Foster, Martin Scorsese and Europe and Asia. The company credited Livneh with Ted Turner. helping to lead its “successful transformation to a Actors Danny Glover, Martin worldwide leader in the textile industry.” Landau, Stacy Keach and Malcolm Tefron manufactures seamless intimate apparel, McDowell were among the guests activewear and swimwear for such brands and fi rms at the event. as Victoria’s Secret, Nike, Target, The Gap, Banana Green, who started her business Republic, J.C. Penney, Lululemon Athletica, Warnaco- 30 years ago by importing slippers Calvin Klein, Patagonia, Reebok, Dolce & Gabbana and and socks from Afghanistan with El Corte Englese. an initial investment of $5,000, now oversees a specialty innerwear HUG HONOREES: Betsey Johnson and Century 21 business for men and women that Department Stores have been selected as the generates an estimated whole- honorees for the 2008 HUG Awards. Accepting on sale annual volume of $25 million. behalf of Century 21 will be executive vice president She was cited for her commitment Isaac S. Gindi. Hosted by the Intimate Apparel Square to “raising the status of women,” Club, the annual fund-raiser is scheduled for Nov. 5 Pelosi said. at the Waldorf-Astoria Hotel in New York. Now in its “By honoring her you are saluting, along with her de- mission statement of my company,” Green said. “We have 11th year, the event raises funds for the pediatric sign skills, her commitment to creating better lives for found that we can use the incentive of our commerce to unit of the Howard A. Rusk Institute of Rehabilitative people living in the shadows of poverty and deprivation help achieve dignity and security for people who work Medicine at NYU Langone Medical Center. In 1999, throughout the Third World,” Pelosi said. “Mary’s signa- on our products and with our company. Ninety percent of the IASC pledged $6 million to support programs ture is adapting and uniting the unique artistic skills of our employees in this country are refugees, or are here at the pediatric wing, and has raised more than $3 masters in various countries and for fostering business under political asylum from their own lands. Our faith in million. The recipients of the HUG Award, an acronym opportunities for entrepreneurs in those lands.” each other is what creates a meaningful world. And it is for Help Us Give, are feted for their community Green is the fi rst apparel industry executive to re- a wonder to me that in doing this subtle work, the people service and contributions to charities and the fashion ceive the award. at Retinitis Pigmentosa International have said to us, ‘We apparel industry. “Decades ago, I took my avocation and made it my see what you are doing.’” vocation and made caring humanitarianism part of the — Karyn Monget 14 WWD, MONDAY, JULY 28, 2008 WWD.COM Innerwear Vendors Brace for Rocky August Market

By Karyn Monget Lilly Pulitzer’s easy NEW YORK — Manufacturers are cotton shirt at the tightening their seat belts for a Carole Hochman bumpy ride at next week’s spring Design Group. market here. August is typically not among the biggest seasonal markets, tak- ing a backseat to the February and November venues. But the nation’s credit crunch and dismal retail environment have trans- formed the upcoming market into a pivotal moment for retailers and vendors. Following the cautious mood of merchants in May and lackluster second-quarter results at stores, orders for spring are expected to be reevaluated, ed- ited and, in some cases, dropped. Retailers want to keep invento- ries tight and narrow, with a focus on key items that will tempt con- sumers, as well as replenishable goods, especially top-performing Tactel, nylon and brands that convey a certain ca- spandex cami by chet and higher quality. Bobi’s cotton tank Tommy Hilfi gerger “I think the response from re- and Moschino Lingerie IntimatesIntimates andand tailers will be similar to the May shorts of Modal, nylon JuicyJuicy Couture’sCouture’s market: cautious,” said Seth Morris, and spandex. poplin shorts. president of the Carole Hochman RACHEL CHRISTINA ROPERTI, ASSISTANTS: EDITOR: BOBBI QUEEN; FASHION FASHION MITRA; ROBERT PHOTOS BY JULIAN/Q MODEL MANAGEMENT HAENDLER/ID; EMILY DANIELLE SPONDER; MODELS: PAULINE LOCKWOOD, Design Group. “I don’t think the economy has changed since May and maybe it’s even scarier. Retailers will probably be during hard times,” Salino said. “It’s more challenging and more real with the harsh more cautious. But certainly retailers will continue to look for newness and innovation.” reality of the economy. In May, the question was, ‘Are we in a recession, will we be in a Josie Natori, chief executive offi cer of Natori Co., said, “This is a time that sepa- recession?’ Now, it’s more upon us, more of a reality. But it’s during diffi cult times like rates the boys from the men. Clearly, this [economic slump] has to go on, and certainly this that people need to get more creative, and maintain and grow business.” all of us in the industry are cognizant of the negative climate and mood. But there Guido Campello, vice president of marketing and innovation at Cosabella,, said, will be a Mother’s Day and other gift-giving holidays to spur business. I hope we’ve “Stronger brands will show their strength, and we want to show retailers that we done our homework with items that will drive the business in this climate. In times are not stopping with innovation and we’re not scared. The challenge right now is like this we’re sharper on product and price, and we are constantly in a dialogue with spreading the optimism we have to the retailers. Companies like ours that work on a retailers on a daily basis, so we don’t expect any surprises.” worldwide basis can weather this storm.” Despite the gloomy forecast, Greg Holland, president of the licensed Donna Karan Bob Vitali, executive vice president of sales and marketing at Wacoal America, said and DKNY sleepwear brands at the Komar Co., said he believes it will be a time to the company has changed its strategy of showing the spring collection in May. take advantage of opportunities. “We’re being aggressive,” Vitali said. “We used to show the bulk of newness in the “I defi nitely think it’s a time for opportunities for branded products, for products fi rst quarter, but now we’ve spread it to 60 percent in the fi rst quarter and 40 percent that are exciting and innovative,” Holland said. “And I think retailers will be looking in the second quarter. We did this because women want something new whenever hard at assortments of brands that are meaningful. I also think the economy will con- they come into stores to shop. We’re spreading product over the course of the season tinue to be challenging and retailers will come to market with reservations for spring and giving the consumer a reason to buy. I also think you have to be in stock. Tried- 2009. With that said, I think the customer is responding to great product. If your prod- and-true styles during tough times become more important, but on the other side of uct stands out on the selling fl oor, the consumer is still buying. But she’s not buying the coin, the consumer also wants to see freshness.” the second choice, she’s buying the fi rst choice, a quality brand.” Gale Epstein, president and creative director of Hanky Panky, said, “An instant Zack Salino, president of D2 Brands, the U.S. division of Delta Galil, said vendors gratifi cation purchase like a lipstick has always been said to be recession-proof. We will need to be far more creative to garner orders for spring. have a similar thing with our thongs in new, bright, happy colors like coral, yellow- “I expect the climate at this market to be even more cautious than previous markets orange and azure blue.”

Shapewear with Style & Function! Call...(800) 982-1113 or Visit our Website www.ragoshapewear.com U.S. SHOWROOMS: 183 Madison Avenue, NYC • Atlanta • Chicago • Dallas • Los Angeles • Miami INTERNATIONAL OFFICES AND AGENTS: Paris • London • Frankfurt • Tokyo • Seoul • Capetown • Istanbul • Canada • Gold Coast, Australia WWD, MONDAY, JULY 28, 2008 15 WWD.COM United Perfumes Takes Brand-Building Approach to Growth

LONDON — A new player is aiming to is not just to sell product but to build ited number of lines. With distribution make it big on the niche beauty scene. relationships.” contracts for four to fi ve brands, industry MAC Teams With Manish Arora Founded in 2007, United Perfumes sources estimate United Perfumes would LONDON — Indian designer Manish Arora plans to build a distribution business in generate turnover in the region of 2 mil- has teamed up with MAC Cosmetics to create the U.K. and Europe focusing on a hand- We’re looking to build lion pounds, or about $4 million, within a limited edition color cosmetics collection. ful of independent beauty brands. two to three years. The line comprises a six-shade eye “We’re looking to build brands that brands“ that have a story Maintaining a boutique approach to shadow compact, dubbed Eyes On Manish; have a story and a personality — some- the business, Delafon and Yu said they two lipsticks; two hues of Lipglass, and thing that shines through the product,” and a personality — believe they can tailor a bespoke strat- two shades of Powder Blush. Prices will said Laurent Delafon, who, with United egy for each brand, relay feedback from range from 10.50 pounds, or $20.90 at cur- Perfumes co-founder Christopher Yu, something that shines the shop fl oor and participate in product rent exchange, for a Lipglass to 30 pounds, previously handled Diptyque’s distribu- development. or $59.72, for the eye shadow palette. tion in the U.K. and Ireland. “The prod- through the product. “We can’t just use one structure for The collection, which features packaging ucts have to be unique — something re- every brand,” said Yu, adding United decked out in riotous colors, will be avail- ally different that means we’re able to — Laurent Delafon, United Perfumes” Perfumes could eventually take on larger able in the U.K., the United Arab Emirates, grow the brand and make it work.” brands as well as niche players. “We have France, Austria, Greece, Cyprus, Hong The company’s first signing was a very old-fashioned approach,” added Kong, Taiwan, Thailand and Singapore L.A.-based candle and fragrances line With that model in mind, Delafon and Delafon. “It’s all about service.” from October for about one to two months. Apothia, by Apothia at Fred Segal found- Yu aim to restrict their portfolio to a lim- — Brid Costello — B.C. er Ron Robinson.

YOUR NEW YORK FASHION DESTINATION Three Shows-One Location 3,100+ Lines of Juried Accessories and Apparel

United Perfumes distributes L.A.- based candle and fragrances brand Apothia in the U.K. and Europe. BEAUTY BEAT “Apothia is unashamedly contemporary,” said Delafon, adding in the U.K. it’s carried in stores including Harvey Nichols, Liberty and The Shop at Bluebird. It also bowed in stores in France, Belgium and Germany last month and will be rolled out to doors in Italy later this year. United Perfumes has also taken on European distribution for bath-and-body collection Olivina, which was founded by food writer Susan Costner- Kenward and inspired by ingre- dients found in Napa Valley. “It’s for the entire family,” said Delafon. “We’re about the health and well being of the skin,” said Costner-Kenward. “I want people to be able to use them everyday.” The line’s pricing is meant to refl ect that utilitarian position- ing — a 500-ml. bottle of body lotion sells for 17.95 pounds, or $35.73 at current exchange. The brand bowed in The Conran Shop stores and Liberty in London, and in stores in France and Belgium last month. United Perfumes also handles U.K. distribution for scented candles by Cire Trudon, a French manufac- turer founded in 1643, which Junior & Young Contemporary Resources includes the court of Louise XIV among its past clients. The line of 12 candles is carried in Holiday/Resort 08-09 the U.K. at Liberty, Roja Dove Haute Parfumerie at Harrods, August 3-5, 2008 | Sun & Mon 9am-6pm • Tues 9am-4pm | Javits Center, Manhattan Brown’s and Petersham Attend: 866-696-6020 | Exhibit: 212-686-4412 Nurseries. “We won’t sell to a store accessoriestheshow.com • modamanhattan.com • fameshows.com unless we’ve visited it,” said Properties of Business Journals, Inc. Delafon. “It’s very time con- suming, but what we’re after 16 WWD, MONDAY, JULY 28, 2008

Fashion’s First Aid Kit MANAGE COSTS By Whitney Beckett and Evan Clark missing the opportunities opened up by the fl agging THE BEARS HAVE TAKEN OVER WALL STREET, economy. AND OVERHEAD shoppers and stores have a serious case of the blahs and At the very least, this is a technology and globalization are reshaping how goods are chance for some serious self TOP LINES MAY BE TOUGH TO made, who’s buying them and how they’re marketed. Even evaluation. control, but the bottom — and more the luxury sector, giddily invincible for years, is facing a “Ask, what do I need to do important — line is another story. newly frugal customer. to be effective in three years when we emerge from this?” By controlling costs and overhead, Fashion is famous for reinvention, but what does the in- said Rick Darling, president of LF USA, part of sourcing profits can be saved from going the dustry need to do to weather the current downturn, which giant Li & Fung Ltd. “The time to make those changes is way of sales in hard times. could be much more serious than previous slumps, and now when everyone is going through tough times and bad As part of the restructuring Liz reposition itself for a rapidly changing world? numbers. There are no sacred cows. This is not a time to Claiborne Inc. disclosed last summer, Some of the advice from industry and business lead- hunker down. This is a time to be aggressive and create the $4.58 billion fi rm has cut $165 ers boiled down to belt-tightening (control inventory and change.” million in expenses, including sizable expenses); some of it is wake-up call material (don’t follow Christopher Meyer, author of “It’s Alive: The Coming layoffs all the way up through executive ranks. the leader, be bold); some of it is reminders (don’t forget Convergence of Information, Biology and Business” (Crown Another $100 million in cost cuts are planned. that the Boomers still have lots of money to spend), and all Business, 2003) compared fashion’s quandary to the natu- “There are special themes that emerge of it is going to require solid and visionary leadership. ral world — where evolution has developed survival strate- with greater priority during economic The fi rst step to excelling in the future is making it gies refi ned over aeons. downturns,” said Claiborne chief execu- through today, which is proving to be more than half the There’s even something to be learned from inhabitants tive offi cer William L. McComb. “We have battle for some — witness the bankruptcy this month of of one of nature’s most modest rungs: Ants. Ant colonies, a special emphasis right now on the bal- the fast-growing Steve & Barry’s chain of low-cost college- Meyer explained, divide their energies between exploiting ance sheet with very clear targets for themed and celebrity fashions and reports that both current niches, like the local picnic table, and searching debt and equity metrics over the next 12 Mervyns and Boscov’s are fi ghting for survival. for new niches. When there’s some sort of change, the park months. That seems to be driving stock The degree to which a company should stay the course closes and the getting is no longer as good at the picnic valuations even more than estimated earn- during the slowdown, tweak plans or completely overhaul table, they invest more resources in exploration. ings. Balance sheet targets trickle into the operations was a recurring theme, with plenty cautioning “What does the typical company do? It does just the op- organization in the form of working capital against big moves. posite,” said Meyer. “If there’s a change in the way your management and cash fl ow focus, so we “This is basically Darwin time — survival of the fi ttest, market works or your business works, then exploration is have our people very focused on inventory and the fi ttest have to show their intelligence and the abil- what you should be doing. Particularly in an industry that levels and even receivables, [stockkeeping ity to execute on their plan without making too many ad- changes as rapidly as fashion. Getting too timid is one of unit] productivity and turns in the retail justments to it,” said Arnold Aronson, managing director of the biggest risks that companies face.” business. You also reprioritize every capital retail strategies at Kurt Salmon Associates. For fashion, this means getting out there, braving the dollar you have for the 24-month horizon. “People spending their energy thinking what life will be hazards of new markets and opening stores in rapidly de- Some things you delay, some things you like in 2010 may not be around in 2010 if they don’t think veloping economies such as China and India, and investing accelerate because they will actually help about this quarter,” said Paul Charron, former chairman in customer service. your business through the tough times.” and chief executive offi cer of Liz Claiborne Inc. “Taking Vendors and retailers can also benefi t by working collab- Many companies are pulling back on cap- fundamental steps now to change course is dangerous.” oratively. “Reach out to retailers and collaborate with them ital-intensive store rollouts and even closing For some, it’s an equation as simple as delivering on the to generate the biggest impact to consumers through new nonproductive doors. Outside of the apparel promise of a brand. and exciting promotions,” said Bernd Beetz, ceo of Coty Inc. industry, Starbucks grabbed headlines by “The most important thing for ongoing success is always It’s the ceos who are going to have to have the guts and announcing it would close 600 stores. Within to remain focused on the long-term brand vision and strat- vision to step up. the industry, Gap Inc. plans to consolidate its egy,” said Mark Lee, Gucci’s ceo. “External factors such as “The question is do you play defense or offense,” said subbrands, such as Gap Kids and babyGap, currency environment, tourist fl ows, stock market bumps Deborah Weinswig, equity analyst at Citigroup Global into its namesake stores to cut real estate create short-term impacts. The challenges in both strong Markets. “If you want to win in this environment, you’ve costs. Walgreen Co. intends to slow growth in and weak market circumstances are the same. It’s always got to play offense and I see so few retailers doing that. the next three years to save $500 million in about delivering unique and differentiated quality prod- Everybody feels a little bit paralyzed right now. Whoever capital expenditures. ucts, embedding the values of the brand.” kind of takes the bull by the horns has really got a huge op- J.C. Penney Co. Inc. has twice reduced Of course, one has to truly have a strategic plan in place portunity.” capital expenditures, most recently cutting if one is going to be guided by it. For some, business as One heartening thought is that business cycles are just 2009 capital expenditures to $650 million usual might not be enough. that, cycles, and consumers will come back and want to from $1 billion, after slashing $200 million Real estate mogul Donald Trump put it this way: buy. The key is to fi gure out now what they’ll want then and in April, which chairman and ceo Myron E. “Moving forward is necessary. If that means changing the how they’ll get it. The only thing that’s a given is that the “Mike” Ullman 3rd said would let Penney’s game plan, then that should be done. Instead of focusing future will be different. maintain “positive free cash fl ow” next year. on the problem, focus on the solution. Sometimes that per- “I’ve been through this at least six times in 53 years,” said Further, Penney’s has reduced store spective can readily trigger creativity, and put a new plan Bud Konheim, ceo of Nicole Miller. “Whatever was the gen- opening and renovation plans and now in- into action.” erally accepted wisdom going into this period changes, and tends to open or relocate 20 stores in 2009, There is a sense that the industry has gotten stale — out of it emerges new ideas and new ways of doing things.” down from the 36 in 2008, a decline from the styles look the same, the stores are cluttered and unfo- Following is WWD’s 10-point business health plan for previous plans to open 50 stores each year cused, executives stand accused of playing it too safe and the most challenging environment in years. through 2011. The company is also scaling HotPockets

WWD Staff Report success. Launched last fall, the Tricks line- success lies in the CHANEL CLASSIC Retailers are struggling with what they describe up includes teddy bear key chains and other fact that every Confi rming the trend as their toughest selling season, but they’re not gadgets. Spurred by the strong performance season for spending sensibly throwing in the towel. of its winter collection, Miuccia Prada Maier on investment pieces, Some merchandise — whether it’s well- tweaked the line for summer by outfi tting introduces classics are selling best priced, trend right, good value or simply has the furry animals as sportsmen, including new at Chanel, particularly that “must-have” quality — is resonating with tennis and elements the house’s signature cash-strapped consumers. And that goes for baseball that make quilted handbags categories, retail hot spots and even some players a consumers in black and gray, a fashion-focused public fi gures in this U.S. boxer and feel up-to- spokeswoman said. presidential election year. a swimmer. date even Classic quilted bags Among this summer’s product winners: Retailing A Bottega Veneta if they’re retail for about $2,800 Chanel’s hair Prada’s animal key chains, “Sex and the City” for $184 Knot bag. carrying a fi ve-year- at current exchange. accessories. lingerie, Eileen Fisher sportswear, Chanel hair at current old Knot. The variations Exquisite craftsmanship is also in demand, accessories, Ray-Ban’s two-tone sunglasses, exchange on the theme include a bag crafted with with elaborate ready-to-wear pieces and Tory Burch Reva ballet fl ats and Sephora’s rates, they antique sterling silver treated to a moiré Baroque jewelry items from Chanel’s pre-fall Blockbuster color palette. arrived effect; ones encrusted with stones such as Métiers d’Art collection doing especially well. WWD asked reporters and editors around at Prada onyx, amethyst and tigereye and Art Deco- Prices for the line’s the world to fi nd out why some items are fl agship stores inspired pieces. Many styles are limited to jewelry range from going strong despite an economic climate that worldwide at only 25 pieces. Priced between $1,100 $250 for a bracelet seems to deteriorate almost daily, while other the end of for intrecciato satin to $14,500 for the to $3,800 for an merchandise is either glued to the shelves or June. Prada teddy bear key chains. multistone limited edition Knot, the bag is elaborate brooch, at drastically marked down. a favorite of Nicole Kidman and Julianne current exchange. Here are some of the products, fashion BOTTEGA VENETA TIES KNOT Moore, among others. To celebrate the bag’s stocks and companies, retailing venues and Three decades after its debut, Bottega 30-year milestone, the house has organized VERY VUITTON people that defy gravity: Veneta’s Knot bag is as popular as ever. Upon a traveling exhibition called “The Knot: A Louis Vuitton Richard creative director Tomas Maier’s arrival in Retrospective,” which will display 50 styles Prince Monogram PRADA’S TRICKS 2001, the brand’s iconic small and rounded and will hit many Bottega Veneta fl agships Jokes bags, priced from The luxury goods house has turned a key box clutch was enriched with a small leather worldwide through October. Louis Vuitton’s 1,650 euros to 2,200 chain into a money generating and waiting list knot that provided its name. Part of its Richard Prince euros, or $2,592 to Monogram Jokes bag. WWD, MONDAY, JULY 28, 2008 17 WWD.COM

back its store renovations to between 10 and 15 units in 2009, down from the 20 in 2008. It had previously planned to renovate BE CONSERVATIVE WITH 65 units each year through 2011. Competitor Kohl’s is slowing store ex- pansion plans from its previous goal of SALES AND INVENTORY 1,400 stores by 2012. “We’re probably going to take a couple of years longer than we WHEN CONSUMER CONFIDENCE originally planned to get to that,” chair- and spending are dampened, the man and ceo Larry Montgomery said. first rule is not to save the top line The $16.5 billion Kohl’s has been adding by sacrificing the bottom line (see 95 to 100 stores annually in recent years, but point #1). will open only about 75 stores this year be- “Now is not a time to push vol- cause of the economic climate. The 957-unit ume,” said Andrew Rosen, Theory retailer will adjust its store opening plans co-founder and president. “If we to the economy each year, Montgomery said. do a few dollars less than we could Wal-Mart Stores Inc. began to cut costs ahead of the curve last year. Compared with have, that’s OK. It’s safer to miss a opening as many as 300 Supercenters a year for the last several years, the fi rm’s expan- sale than have too much inventory. sion plan calls for about 170 new Supercenters this year and 140 next year. Wal-Mart also When the economy is really rolling, revised its forecast for capital expenditures to between $13 billion and $14 billion, down you can take chances that wouldn’t from $13.5 billion to $15.2 billion. be prudent to take today.” “That strategic declaration took place well before there was any kind of a crisis in the Profi t is a function of inventory. credit markets, well before we had a meltdown in the mortgage markets,” said Tom Schoewe, Vendors should undersell and re- Wal-Mart executive vice president and chief fi nancial offi cer. “We got out ahead of that.” tailers should underbuy, given the To cut costs, consultants recommend working backward. To make 8 percent of sales theory that it’s preferable to reduce as profi t, fi gure out what the overhead must be to achieve that and then assess every sales than margin. On the retail line of expenses. side, Gap Inc. lowered inventories 13.8 percent during the fi rst quarter, which One of the biggest, most fl exible — and emotional — places to cut is personnel. For dropped quarterly comparable-store sales by 11 percent, but also improved example, The Talbots Inc. is eliminating 129 positions and cutting its corporate head margins. For manufacturers that typically produce an extra 20 to 30 percent count by about 9 percent, producing roughly $14 million in annual savings. over orders, one chief executive offi cer recommended reducing excess produc- A company shouldn’t think about who it’s laying off, said some experts, but rather tion to 5 percent. whose jobs is it saving by doing what it has to do to stay in business. Businesses can Even as stores scaled down on inventory going into this year, retailers shave 10 to 20 percent off overhead by eliminating one person per department. To still bought too much, and excess inventory has haunted them. For example, choose when it’s prudent to lay people off, one ceo recommends asking: “What would American Eagle Outfi tters Inc.’s 5 percent decrease in inventory was not enough, happen to this business if that person were hit by a bus tomorrow morning?” If business and the retailer resorted to aggressive markdowns to clear merchandise. could continue as normal, eliminate that job, the ceo advised. It may sound heartless, Even luxury retailers aren’t immune. “This battle on price is just not our but this can actually mark an upside of the economic downturn. There are probably game but we got into more promotions than we liked because of our inventory employees that companies should have fi red for performance issues, but didn’t want to levels,” said Burt Tansky, Neiman Marcus Inc. chairman and ceo. “Promotional make those hard decisions when times were good. activity will continue as long as the inventories are high. We are driving our One place that cost savings probably won’t be coming from is sourcing at factories, inventories to our year-end plan and once we get there we intend to stay there. where most companies are seeing prices climb by as much as 20 percent. From our perspective, we hope the promotional activity will normalize. We “You risk insulting your consumer by raising prices, despite higher costs coming from would like to avoid them in the future.” overseas,” said Rick Darling, president of LF USA, part of sourcing giant Li & Fung Excess inventory goes on sale, which not Ltd. “Effi ciencies aren’t going to come further from garment factories — we’ve rung that only drives down margins on that round of towel out as far as we can as an industry for the last 25 years — so it has to come from product but also interferes with future lowering overhead. But 80 percent of costs come after the goods leave the factory, from sales of full-priced product, creating freight, logistics and overhead. As freight costs rise, you have to look at logistics and a vicious cycle. On the other hand, overhead. You can outsource logistics and you must cut overhead.” limited quantities of clothes can train Although outsourcing has risks and downsides, including quality control, compli- customers to buy at full price. ance standards and deverticalizing, which divides margins along the supply chain, out- “Shoppers are more willing to sourcing offers several advantages. For one, expenses become variable instead of fi xed. pay for an item at full price if they Spending $1 on salary in-house, actually costs $1.50 with benefi ts factored in, whereas think it won’t still be there the next with outsourcing, there’s a real dollar-for-dollar value. Also, when demand is reduced, week,” said Christine Chen, retail there’s not the emotional cost of cutting in-house jobs. analyst at Needham & Co. LLC. “Think about where you add value in your supply chain and outsource what is not Inventory reductions will become your core competency,” recommended Darling. “When something is not your strength, even more important during the upcom- it’s not where you should spend your energy — you should rent instead of buying.” ing back-to-school season, argued Eric Areas that retailers and vendors may consider outsourcing include logistics, sourcing, Beder, retail analyst at Brean Murray, Carret warehousing and distribution. & Co. “With initial fall shipments in less than six Tommy Hilfi ger Group decided to outsource its sourcing to Li & Fung last year. weeks, the level of newness will continue to slacken, “From a sourcing perspective, owning your own buying offi ce in Hong Kong used to be while the need for price cuts to clear a competitive advantage, but today it’s a competitive liability,” said Fred Gehring, ceo out goods will increase,” he said. of Tommy Hilfi ger Group. “Now you need offi ces throughout Asia, so we struck a deal to “We believe most of our universe outsource completely to Li & Fung, so we can move all over the world as the commercial has continued to aggressively re- DENIM SALE TIM PANNELL/CORBIS; /CORBIS; COMPUTERS BY opportunities move. The more outsourced you are, the more fl exibility you have, wheth- duce inventory exposure over the GETTY IMAGES IMAGES.COM/CORBIS; THE BUCK STOPS HERE BY ▲ er in sourcing or logistics.” past few weeks.”

$3,456 at current exchange, couldn’t stay Zagliani’s revolutionary techniques include with Dubai real estate developer Tatweer. His on the shelves upon their entry in March, Madonna, Kylie Minogue and Jennifer Lopez. fi rst project will be a high-end boutique hotel with only a handful left in Vuitton’s Champs- at The Tiger Woods Dubai Resort, which is Elysées fl agship, a spokeswoman said. HELLO DUBAI expected to open in September 2009. “Any design that is limited “Dubai is a fashion bud on the verge of edition is always enormously blossoming into the next fashion hub of the SECOND CITY ATTRACTION successful,” she added. world,” Karl Lagerfeld said recently. The Retail development Kaiser made an agreement with Dubai Infi nity along Damen Avenue ZAGLIANI’S SKIN GAME Holdings to design 80 residential homes, with in Chicago’s Bucktown When former 10 percent of those made-to-measure, on section is moving at dermatology student Dubai’s Isla Moda, the world’s fi rst dedicated breakneck speed. Within Mauro Orietti-Carella fashion island. The deal between Lagerfeld the last few weeks, decided to apply and DIH is the latest fashion marriage in LeSportsac and Bebe his skin care Dubai, the fast-growing Gulf kingdom launched boutiques, knowledge to and Club Monaco and bags, little did he Lululemon opened Jil Sander’s new store on Howard Street. imagine he would boutiques July 18. Still open a new under construction are chapter in the outposts for Joe’s Jeans discover, Howard Street, at the southern end of accessories book. and Jill Stuart, both of Damen Avenue is SoHo, emerged as fashion’s shopping hot spot First, his exclusive which are set to open attracting national of the moment. In mid-June, Jil Sander opened formula of silicon in September. They will and international a striking store on the corner of Howard and Zagliani’s Puffy handbag. and plant resins is join the growing list of chains. Crosby Streets, unveiling a new interior concept injected into python national and international by creative director Raf Simons with artist and crocodile skins and 14 hours later the skins retailers, including Intermix, Cynthia Rowley Germaine Kruip. Sander’s arrival heightened are quilted into bags. The result are bags that Dubai is rich with growth opportunities. and Marc by Marc Jacobs. the fashion quotient on the block: Opening maintain their natural suppleness and softness. Ceremony, the uberhip boutique, has already Spring’s bestseller is the Puffy bag, or a large that has become the oil-rich region’s shopping STREET SCENE made the area a must-see destination for the and slouchy tote in acid green and fuchsia and vacation capital. Elie Saab last month said Just when it seemed like Manhattan was international fashion set. And Derek Lam is ▲ WAL-MART PHOTO BY NAJLAH FEANNY/CORBIS; WRENCH BY BURKE/TRIOLO PRODUCTIONS/BRAND X/CORBIS; MANAGED COSTS BY IMAGEMORE CO., LTD. IMAGEMORE CO., X/CORBIS; MANAGED COSTS BY PRODUCTIONS/BRAND BURKE/TRIOLO NAJLAH FEANNY/CORBIS; WRENCH BY PHOTO BY WAL-MART that retails for $3,000. Celebs that appreciate he would start designing signature luxury hotels running out of pockets for luxury retail to planning a store there, too. BY ILLO MOODBOARD/CORBIS; MAN WITH GLOBES JEMAL COUNTESS/WIREIMAGE; 70% OFF BY SHOE SHOPPERS BY LTD./CORBIS; IMAGEMORE CO., BY 18 WWD, MONDAY, JULY 28, 2008 STEP UP LEADERSHIP CEOS, BETTER ROLL UP YOUR SLEEVES. in a letter to executives. “The headlines and newscasts are overfl owing with gloom Employees and shareholders are nervous, and doom. In spite of it all, I am proud of how our organization has risen to the the company needs to be at the top of its challenge in continuing to embrace change, serve our customers and innovate with game to maintain or pick up market share unique new merchandise and marketing and selling programs. and leadership is essential. “History tells us that our economy will improve over time, and we will get through “Senior management has to become much this diffi cult period,” he continued. “When that happens, our company will be poised to more visible, be with the troops,” said Arnold win over more customers. This is a time for us to maintain our focus, and I thank you in Aronson, managing director of retail strategies advance for doing so.” at Kurt Salmon Associates. “Set the standards Although there’s no telling what impact the soothing words had on frayed nerves, of performance higher than ever. Expect Macy’s stock managed to stage a comeback, demonstrating the importance of com- people to be more than they think they municating with analysts and investors. can really be. Even if the results are more Edie Weiner, a principal at Weiner, Edrich, Brown Inc., a futurist consulting modest than they would have been while group, pointed to executive compensation as a useful yardstick of whether a compa- good times rolled, great execution has to ny has a sustainable plan. “You have to rethink the whole human resource strategy,” be acknowledged and rewarded.” Weiner said. “When you remove yourself so much from the people who work for you One of the industry’s most sought-after and you have a corporate echelon that is really not so connected to the lives and the executives, Rose Marie Bravo, former concerns of the people who serve the customer, then the customer is not going to be Burberry and I. Magnin chief executive of- well served. That’s all part of stewardship. How are you taking care of the people and fi cer, and former Saks Fifth Avenue president, the planet?” emphasized the importance of a leader who L.L. Bean is helping its employees manage their cost of living expenses. About communicates in hard times. a third of its 5,000 worldwide employees have signed up for ECO Bean, a new em- “Certainly in business, you’re going to have up- ployee commuting option program that makes participants eligible for gasoline gift and-down cycles, and some are going to be more dramatic and catastrophic than cards, GPS devices, bicycles and other gift certifi cates. Carpoolers get priority park- others,” Bravo said. “If sometimes the goals ing at the company’s Freeport, Maine, head- may need to be adjusted — and I’m talking not quarters and more designated spots have been just the fi nancial goals, but also the qualitative needed because of the program’s popularity. goals — you might think you would prioritize Lululemon Athletica Inc., a Vancouver- in a different way given the circumstances. But based yoga apparel retailer, posts a “Goal you want to keep the commitment to the mis- Tending” section on its Web site, replicating sion. It’s essential, especially if you are manag- the same goal-focused approach it cultivates in ing a brand or a store that has its own DNA. its employees. The company is also achieving It’s easy to go off point when you are having its goals of healthy profi ts and sales growth in disastrous business or a reversal. its fi rst year as a public company. “Probably during tough times, the best thing Leadership also means staffi ng up with the you can do as a leader is to be extremely vis- best people possible, through recruiting, train- ible and extremely supportive and to be reaf- ing and mentoring. fi rming of the positives, and to be out there In his book, “The Game Changer,” (Crown communicating consistently and constantly the Business, 2008) A.G. Lafl ey, chairman and ceo message and the objectives that will help the of Procter & Gamble Co., preaches the impor- organization stay positive because it could go tance of developing future leaders. His plan into a very negative cycle,” Bravo added. calls for: Dana Telsey, president of Telsey Advisory Group, put it this way: “It’s staying ● Identifying future leaders immediately. ahead of your customer, making sure that the staff and the selling staff continue to ● Personal coaching by other innovation leaders. be excited about the brand and listening to them to hear what the customer says.” ● Support systems and training opportunities. At Polo Ralph Lauren Corp., Ralph Lauren told WWD last fall, on the occasion of ● Intentional assignment and experience planning. his 40th year in business, that one person cannot be “the genius of the whole world.” ● Reward and recognition. Although the designer typically wins when he and his chief operating offi cer, Roger “From Day One, new hires at P&G are intentionally thrown into innovation proj- Farah, have differences of opinion, they always discuss issues. “It’s about teams, it’s ects to see how they do right from the start,” Lafl ey wrote. “More P&Gers in more about give and take, it’s about opening up,” Lauren said. functions are tested this way. If they do well, they get a bigger project. To move up People at the top of the organizational chart need to remember, too, that the tough into the senior ranks at P&G, an employee has to consistently demonstrate his abil- economy, more than being a headache for the company, can be a real threat to the rank ity to run a business operation; to defi ne clear, game-changing strategies, and to ef- and fi le. fectively run an innovation program. It’s that simple.” “This is a diffi cult time for employees,” said Marshall Goldsmith, executive coach Today’s trainee might well be tomorrow’s corporate titan, and a boost to pro- and author of “What Got You Here Won’t Get You There” (Hyperion, 2007). “Their grams now might mean that in a decade or two, every open slot in a corner offi ce friends are being laid off for things that are often not because of performance. The won’t be accompanied by a chorus of complaints that there isn’t enough top-shelf average employee is spending a third of his time complaining and focusing on how talent to draw from. times are hard. You need to involve your employees in the changes that need to be “One of the fi rst things that go when times are tough are the training programs,” made.” said Jay Baker, the former president of Kohl’s Corp., who has made signifi cant phil- Terry Lundgren, Macy’s Inc.’s ceo, sought recently to reassure his management anthropic contributions to industry-related education since his retirement. “But if team that the company was picking up market share and remained fi nancially you are going to get young talent, it’s essential.…In the short term, you save money healthy despite rumors of liquidity problems that had tanked the retailer’s stock. by not hiring young people and having these training programs, but in the long term, “I recognize how distracting the economy is for all of our people,” said Lundgren you really are going to suffer.” HotPockets

stores outside North America (though they can Wayfarer spin-off design from that decade, LUCKY LUCITE shop at them online). dubbed Wayfarer II. The new model sports two Given today’s shaky tones, a band of color on the slightly raised retail climate, RAY-BAN’S COLOR WHEEL upper part that extends to the arms and an costume jewelry Oversize, round sunglasses had faded, so when opposing shade to frame the bottom of the is experiencing a paparazzi pictures turned up of celebrities lenses. Wayfarer I and II models retail for major resurgence such as Kirsten Dunst, Sienna Miller and $139.95. that hasn’t been model Agyness Deyn wearing small, fl at- seen in decades. fronted, squared-off colored frames, eyewear CLICKING AT COLETTE For summer, Alexis brands went full throttle. None has been able The lure Bittar’s Lucite to touch the sunglass silhouette’s inventor, of limited collection — Alexis Bittar’s Ray-Ban, which reissued its original 1952 edition ranging from bangles signature Lucite cuffs. Wayfarer acetate model this year in popping items to brooches — are and primary colors that contrast inside and continues best-selling items at such luxury retailers out, or on the frame’s front and the arms. to fuel as Saks and Nordstrom, as well as in his Running with fashion’s trend of channeling business own boutiques. Averaging between $150 Abercrombie & Fitch draws a big tourist the better style parts of the Eighties, Ray-Ban at Paris’ and $750, Bittar’s baubles hit that retail crowd on Fifth Avenue. went one step further and recently evolved its Colette, sweet-spot that make great wedding or bridal with Reebok’s freestyle shower gifts and even spur-of-the-moment sneakers at Colette. PIT STOPS 150 pairs of the store’s self-purchases. On almost any weekend, Abercrombie Ray-Ban Wayfarer “Colette x Married to the “The economy makes things much sweeter & Fitch’s megastore on Fifth Avenue or sunglasses. Mob x Reebok Freestyle” sneakers selling out for fashion jewelry,” said Michael Coan, Anthropologie at Rockefeller Center are fi lled in a couple of days, priced at $170. Fans even associate professor and chair of the jewelry with shoppers — many of them tourists lured camped outside the boutique to snag one of design department at the Fashion Institute of to the U.S. by the favorable currency exchange the 178 pairs of Nike Air Force 1, designed by Technology. “People who would look to buy rate. These two chains appear to have become “Busy-P” (Pedro Winter). Bottles of Le Labo something fi ne between $3,000 and $5,000 a must-see destination for visitors. They love fragrances, priced at $160 for 50 ml., have also can fi nd a similar and even more avant-garde their designs, the shopping environment and been selling well, while big spenders have been piece in fashion for $100 to $200. In times of the fact that, besides Abercrombie’s recently splashing out on the store’s Hublot and Franck trouble, people want to splurge, but not on a opened London location, they can’t fi nd these Muller watches, priced, on average, at $20,000. fi ne piece of jewelry.” WWD, MONDAY, JULY 28, 2008 19 WWD.COM PROVIDE MORE VALUE AND DIFFERENTIATE PRESSURE IS PLOWING IN FROM BOTH ENDS: and now,” said designer Alber Elbaz, the creative At the production level, costs out of China and H&M offers fast helm of Lanvin. “For me, it’s about design and Europe and freight costs for delivery are climbing, fashion at low prices. about desire and dreams. Fashion is about creat- and at retail, consumers aren’t willing to pay as ing a need.” much for the same product. In short, they’re de- Francisco Costa, creative director of women’s manding more value at a time when value is hard- Calvin Klein Collection, said in an earlier inter- est to produce. view, “Some people may question why the col- The good news is value can come from two av- lection was too heavy in terms of the fabrics, and enues: price and product innovation. what is happening to the economy now because The more obvious one, price, is illustrated clothes get pricy. I felt the opposite. When times by Wal-Mart’s recent gobbling of market share. are tough, you need investment clothes, really. The challenge today comes from companies like You will buy things that really make sense to you, Hennes & Mauritz, Uniqlo and American Apparel that you can have for the longest time.” that put out fashionable products for practically For retailers, the question becomes how to get nothing. the customer to buy products from their stores, Christian Courtin-Clarins, president of Groupe rather than the competition. Clarins’ supervisory board, attributed much of “Customers come to Macy’s and Clarins’ recent success of its pricing strategy “to Bloomingdale’s looking for new and interesting stay reasonable.” “If you are too expensive, people merchandise,” said Terry Lundgren, chairman, will go to different distribution. Our target is to ceo and president of Macy’s Inc. “They don’t want keep our customers in our distribution.” to see the same goods in our stores as they do all William P. Lauder, chief executive offi cer of over town.” the Estée Lauder Cos. Inc., has a three-step pre- Macy’s has made its exclusive and private scription for the recession blues. Focus on the brand offerings a top priority, even calling its 2007 consumer, he said. “She has to feel important.” annual report “the drive to differentiate.” More The second element is brand distinction: bring- than a third of its $26.3 billion in sales came from ing excitement to the brand so that the consumer absolutely has to have it. His fi nal brands that are exclusive to Macy’s or in limited distribution, including its private piece of advice is to “be sensitive about price.” In particular, manufacturers must be label INC line, Martha Stewart Collection, Donald Trump’s line and diffusion lines careful about what cost increases they pass along to consumers. such as T Tahari. As Macy’s expands exclusive partnerships with Tommy Hilfi ger, But for companies without the size or sourcing capabilities to win purely by FAO Schwartz and Lush Cosmetics this fall, that number is only expected to grow. price, the answer is adding more design, integrity, versatility and longevity. “Even in tough times, you can survive by doing things differently from everyone “There are two types of business: One sells by price and one sells by design,” said else,” said Vittorio Radice, ceo of La Rinascente, the Italian department store chain. Bud Konheim, ceo of Nicole Miller. “When you sell by price, you win when your price “By choosing to play in a different fi eld, you can take market share away from others gets to zero — a bad win. To add perceived value for us gets into design. When we and get stronger. We have been repositioning our offer [upstream] for the last three hear a dress is too high-priced, we interpret it as ‘I don’t like it,’ because consumers years to differentiate ourselves and take ourselves out of the midmarket. By modern- will still spend when they love something.” izing some stores and closing down others that are underperforming, by introducing Mickey Drexler, chairman and ceo of J. Crew Group, hates the word “affordable” accessible luxury brands and cutting down our private label, we think we can weather and instead relies on differentiation to sell product. Part of retail’s problem is there the storm and come out stronger.” are “too many damn stores,” and not enough difference between them, he said. The retail experience can also provide customers with perceived value. Wharton “The world has become an assembly line of sameness,” Drexler said in a recent professor of marketing Stephen Hoch argues that retail consists of three basic di- interview while opening a Madewell store in Atlanta. “We have to bring customers mensions: value, accessibility and discovery. something exciting they haven’t seen before. We have “Consumers are a lot smarter today, and when times get tough, they start paying to be in the style business.” more attention,” Hoch said. “Every retailer that is discovery-focused now needs to Ralph Lauren agreed. “I look at this industry fi gure out how to inject value by being creative. You can offer value by simplifying and walk around the stores to see what is going the decision process or by educating the consumer so they understand the value on,” Lauren said in an interview last year when equation and why a product is worth more, like Apple does.” Polo Ralph Lauren Corp. launched Global Brand Branding and marketing can also contribute to value. “Beyond pricing, the new seg- Concepts, a private brand division. “I think one of mentation will have to be about emotional benefi ts regardless of the nature of the item,” the things stores need is an ability to be individual, said Marc Gobé, president of Emotional Branding, a consulting fi rm. “For example, if the ability to say, ‘This is mine.’ They have to be able you can’t afford that big-size expensive diamond ring, get a smaller one at Tiffany where to say, ‘Come to my store because we have something the magic of the blue box compensates for the smaller diamond size. The Tiffany blue you don’t have.’ box creates an expectation that speaks loudly about taste and specialness regardless “In this day and age, there are a handful of design- of the price. In this emotional time, you need emotional solutions: Branding based on ers and brands that are very strong,” Lauren continued. trust will be key.” “They can grow, but at a certain level, they start to over- Juicy Couture seems to be one of those brands, growing more than 50 percent a lap. Consumers are looking for something new, year after more than a decade in business. “For Juicy, we are sort of in this weird retailers are looking for something new and the zone where we are seen as pure, colorful, happy L.A. sunshine — sort of like comfort brands are looking to grow their business.” food,” said Gela Nash-Taylor, co-founder and co-creative director of Juicy Couture. Winners will differentiate themselves by “I think that people come to us because they know us, they are comfortable with us, newness and unique designs that excite or in- they see us as affordable luxury. We are a safe buy for them. In times like these, we spire consumers. sell tracksuits like crazy because they are colorful and comfortable, which people “I’m not sure fashion is just about the here seek out in tough times.” ▲

THE DRESSES STILL leather or haircalf, retail for $95 and other economic woes. “Wal-Mart’s clear BATTY ABOUT BARACK HAVE IT to $250 and stores just can’t pricing message and strong value proposition Barack Obama became the presumptive Cedric Charbit, general seem to keep them in stock. They are helping the company gain share of wallet Democratic presidential nominee — and has merchandise manager for are Tory Burch’s Reva ballet fl ats, with existing customers and attract new emerged victorious in the fashion sweepstakes, Printemps in Paris, said which are being worn by teenagers customers,” said Deborah Weinswig, too, according to CafePress, a Web site where evening dresses, particularly and adults. The seasonless fl at shoe broadlines analyst at Citigroup Global people post T-shirt designs. CafePress’ contributors in the 900 to 2,200 euros, is adorned with a large metal “double T” Markets Inc. created 1.7 million designs featuring Obama, or $1,413 to $3,454, retail logo on the toe. They go with practically outpacing those featuring Sens. Hillary Rodham range were strong sellers. everything in a woman’s wardrobe, industry A HELPING HAND Clinton (850,795) and John McCain, the likely ▲ Some lines doing particularly experts said. The weak economy Republican nominee (488,131). well are Lanvin, Alberta has been a boon Ferretti and Roberto Cavalli. WAL-MART Wal-Mart for consultants who “To dress properly in the ON A ROLL is one of help fashion fi rms evening or an event, a dress In a world retail’s fi nd partners when A Roberto is a must,” Charbit said. where size better they come to the end of Cavalli dress for “Who would wear denim for doesn’t stocks. The bad economy their fi nancial rope. spring 2008. dinner?” necessarily is a boon for fi x-it “There’s a fair amount equate executives. of savings in strategic FLAT-OUT SUCCESS with stock mergers because all They come in just about market the infrastructure costs are being shared,” every color imaginable, strength, said Jack Hendler, president of Net Worth are available in Wal- Solutions Inc. The pressure to hook up is leather, Mart has being propelled not only by consumers who are patent managed to pull off a twofer — the world’s cutting back, but by supply side dynamics and largest retailer is also one of retailing’s cost pressures. “The manufacturer is clearly stronger stocks. Year-to-date, Wal-Mart’s shares getting price increases around the world, Barack Obama jumped 19.6 percent, while the S&P Retail anywhere from 7 percent to 12 percent from T-shirt designs Index has dropped 14.9 percent. Shoppers a year ago,” Hendler said. are outpacing are fl ocking to Wal-Mart for budget relief the competitors’. Tory Burch’s Reva ballet fl ats. amid higher gas prices, sinking home values 20 WWD, MONDAY, JULY 28, 2008 DELIVER CUSTOMER SERVICE REALLOCATE WHEN PRODUCT ISN’T MOVING IN TOUGH TIMES, DEPARTMENT STORES ARE conditioned to host big sales to drive traffi c. But at specialty stores, when times get tough, RETAIL SPACE owners and salespeople help start calling clients to tell them about specifi c items that experience suggests the customer will want. “We are and will continue to be, with ever-greater intensity, hugging our associ- RETAIL TODAY COULD PERHAPS BE ates and they, in turn, personalize the relationship with every customer and client,” better described as Rack City. said Jack Mitchell, chairman and chief executive offi cer of Mitchells/Richards/ Ira Neimark, former Bergdorf Marshs. “We call our customers, we are showing them fall goods and we’re telling Goodman chairman, recommends rethink- them about upcoming events. We’re raising the bar a dash and making sure every ing stores’ use of space. “The customer customer gets hugged every time they come in. We want our sales associates to be walks in and wanders around looking for up and positive and make each customer feel like they are coming into our home.” something, missing great opportunities,” Known for its outstanding customer service, Nordstrom Inc. was the leader in Neimark said. “Now it has reached epi- large-format apparel (as opposed to mall-based specialty stores) in an IBM survey demic proportions, where every major of more than 19,000 consumers earlier this year. Twenty-eight percent of Nordstrom store has racks all over the store.” customers — the highest of any store in its group — said they would recommend the The fashion business could benefi t retailer, would spend more there if the store offered products found elsewhere and from studying retail best practices of would stay with the retailer even if another store offered competitive goods. Why? It other industries. The apparel industry boils down to customer experience. could benefi t by shifting its focus from According to Robert Spector, author of “The Nordstrom Way to Customer Excellence,” sales per square foot to an engaging re- (Wiley, 2005), numerous factors contribute to Nordstrom’s reputation for outstanding customer service. Among them: tail experience, which can be found at ● “Salespeople are on commission and they’re encouraged to be entrepreneurs within the company. Salespeople can take Apple, Whole Foods and Best Buy. Within a customer and sell across all merchandise lines, so if you come in looking for a Donna Karan dress, you can also buy some- the apparel industry, Anthropologie “sets thing for your husband, and that person will take you throughout the store and will get the commission for the sale.” aside space for theatre,” as one source ● “Nordstrom is famous for its wide and deep inventories. In the shoe department, if your right foot is more than two sizes described the retail strategy, and Saks different than your left foot, Nordstrom will break up the pair and sell them to you.” Fifth Avenues’ shoe fl oor — marketed ● “Salespeople are always following up and you always get a thank you note.” with its own zip code — has played a ● “The stores are set up to create an inviting place. Not every square inch is loaded down with merchandise, so you can huge role in driving shoppers into the push a baby stroller or a wheelchair.” store to witness the spectacle. ● “Every year they set a sales goal for each department, and people who achieve that goal get a PaceSetter, which gives them Urban Outfi tters is testing a retail con- a 33 percent discount for the year. They’ve created a culture where customer service is singled out, honored and rewarded.” cept called Space 1520 in a 26,000-square- ● “There’s the story of the man who lived in Long Beach, Calif., and forgot to pack his suit for a meeting in Austin, Tex. He foot building in West Hollywood. Urban called Nordstrom and told him his size, and the suit arrived at his hotel in Austin with a note, ‘Thank you for thinking of us in Outfi tters will occupy 11,000 square feet your time of need.’” and act as the landlord to other retailers ● “They hire nice, motivated people,” Spector said. “Nordstrom wants them to be already nice and already motivated be- it chooses. Food, entertainment, beauty fore they come to work for them. When I asked Bruce Nordstrom, the retired chairman, ‘who trains their salespeople?’ He and art are complementary businesses said, ‘their parents.’” being considered. “Space 1520 is very ex- “Any time we have activity on the fl oor, the business is better,” said Michael Gould, chairman and ceo of Bloomingdale’s, periential and tied to culture, commerce which recently was named “Department Store of the Year” at the Global Department Store Summit in London. “We just and community,” said Glen Senk, ceo of had the four models for Estée Lauder in store, and the sales were incredible. What can we do to entice people to spend? Urban Outfi tters Inc. Space 1520 could be Freshness of merchandise, newness and special events.” Bloomingdale’s has also increased its service on the selling fl oor. Apple store. For example, in its New York fl agship’s lingerie department, cus- tomers can pick up a phone in the dressing room and request addi- tional sizes and styles that are delivered instantly. Bergdorf Goodman has found success with special events like trunk shows that let the customer preview individual lines early in the season and talk to someone — often the designer — who knows the line well. In May, an Akris three-day trunk show at Bergdorf ’s did more than $1 million in sales, with the fi rst day breaking Bergdorf ’s record for the most actual sales in a day by a designer — all this despite the shaky economy. Jim Gold, president and ceo of Bergdorf ’s, called the trunk show “an exciting and positive start to the fall season.” “The store’s success can be attributed to aggressive product and service strategies along with an intensive capital investment,” Gold said last July when Bergdorf ’s cracked $500 million in annual sales for the fi rst time, as he gave a toast to his sales associates. “We could not have reached this milestone without the loyalty of our clients, the talent of our associates and the commitment and support of our Satisfying vendor partners.” customers is La Rinascente, the Italian department store, has mechanized its essential. back offi ce, enabling the retailer to get more people out on the sell- ing fl oor, while keeping headcount constant. HotPockets

SURVIVOR AFFORDABLE LUXURY contemporary) fi ts and more stylized, fashion- Another key to the Vancouver-based company’s Turmoil in the Women used to fi ner things forward looks than their predecessors. success is its community-building formula. bridge market aren’t giving up style or A year before Lululemon launches in a new during the last quality entirely. The result LULULEMON FEELS THE ‘OM’ city, it opens a small showroom that hosts decade left is growth of bridge-priced After a $327.6 million initial public community events and reaches out to local one survivor (but not bridge-looking) offering last July, the Canadian yoga fi rm’s yoga and Pilates instructors. unchanged and brands such as Tory Burch, earnings more than tripled to $31 million thriving — Eileen M Missoni, Elie Tahari, on sales that almost FAST FASHION KEEPS SPINNING Fisher. The Lafayette 148 and Nicole doubled to $275 With their dual focus on being trend right and 24-year-old brand Miller, which is launching a million. Anticipating delivering value, fast-fashion chains seem to continues to full bridge-priced sportswear comparable-store sales be gaining market share. European retailers generate growth — line for spring. “Luxury is growth in the low-teens like Zara and Hennes & Mauritz are weathering 15 percent to 20 a bad word right now; what or high-single digits on the economic percent annually the word means is foolish,” a constant dollar basis, storm well and over the last fi ve said Bud Konheim, chief the 86-unit chain plans are changing years — unusual executive offi cer of Nicole to grow to by as many consumer for a mature Miller. “The trend is toward as 300 stores, rolling expectations brand. The $254 more sensible buying and out about 35 units a about cost and million bridge away from conspicuous year through 2012. timely delivery company has consumption.” Bridge fl oors The trend toward of trends. more than 40 stores. Eileen Fisher has a (now called “Modern” at Saks health, wellness and Despite the “This is a terrifying strong Boomer following. Fifth Avenue or “The New fi tness bolsters the negative impact time, but I feel safer View” at Bloomingdale’s) are yoga company’s raison of weather Zara moves fast on trends. than I’ve felt in our history,” designer Eileen getting a second life after Tory Burch d’etre, but Lululemon this spring and Fisher told WWD this spring. “I’ve had the their fi rst incarnation — with sportswear is differentiates itself general economic experience of actually doing well in rough Ellen Tracy (now with new selling well. from other active conditions, Inditex Group, the Spanish chain times in the past, maybe because the clothes owners), Dana Buchman offerings with its Lululemon that runs Zara, reported fi rst-quarter profi ts are simple and have a timeless quality around (which will move down-market to Kohl’s for fashionable product, is rolling rose 10 percent, and Swedish giant H&M said them, so people don’t feel like they are buying spring 2009) and Anne Klein — fi zzled out. which analysts describe out stores. its most recent quarter saw profi ts improve 6 something terribly frivolous or wasteful.” Its new occupants have slimmer (though not as uniquely feminine. percent to $839.3 million, following a fi rst- WWD, MONDAY, JULY 28, 2008 21 WWD.COM expanded to other cities. “Don’t forget the value of inspiration,” counseled Daniel Erlbaum, chief ex- RETIME SHIPMENTS TO ecutive offi cer of Finch Brands and a former vice president at David’s Bridal. MITIGATE MARKDOWNS “The power of a retail brand will carry the store AS WOMEN’S BUDGETS TIGHTEN, THEY ARE WAITING LONGER in these diffi cult times,” to shop — until they’ll actually be able to wear what they’re buying. One contended Erlbaum, whose reason, say numerous observers, is that season after season of ear- clients include Lord & lier and earlier markdowns have trained customers to wait for sales. Taylor, Everlast and Daffy’s. Markdown madness might be corrected, at least in part, if vendors Selfridges in London has and retailers collectively shifted merchandise arrival to align with devoted 3,500 square feet to the seasons. In other words, fall should start selling in August or its Ultralounge, a basement September, not June, space that doesn’t sell products and should not be but rather holds exhibitions and marked down until events. “We want to capture customer closer to the end, not affection and loyalty,” Selfridges ceo Paul Kelly said. “If you can do a beginning, of the season good job in the tough times, you’ll do a great job in the good times.” as defined by weather. At Saks Fifth Avenue, last year’s launch of its highly marketed Vendors have been 10022-SHOE fl oor in its New York fl agship is an example of “tar- complaining about geted capital improvement” to increase the productivity of Saks’ the early timing of current stores, according to Stephen I. Sadove, Saks Inc. chairman shipments for years — and ceo. After the department’s success in New York, Sadove plans Donna Karan has been to expand the shoe fl oor concept to “fi ve or six more stores.” an outspoken advocate J.C. Penney has scored by adding Sephoras, which are anchored of aligning deliveries at Penney’s entrances and are two to three times more productive with the seasons — but than the rest of the store, according to Myron E. “Mike” Ullman 3rd, the current economic chairman and ceo of J.C. Penney Co. Inc. situation and shift in “The whole idea of Sephora was we felt we had to differentiate consumer buying pat- Penney’s from Kohl’s, from Macy’s and from other key competitors by terns may be enough to having attractions that would anchor us as an exciting and fun place stimulate real change. to shop and an easy place to shop,” Ullman said at the WWDBeauty “We are so projecting CEO Summit this past spring. “Beauty is one of the most frequently forward that we are not shopped categories, and Penney’s has never really been very success- talking to the customer,” ful in the beauty category….The reason I felt it would work well is I said Karan. “People felt that expanding the footprint of Sephora, which is a highly desir- should not be worry- able, successful concept, to reach customers that they would never ing, ‘What do I wear six get to. We do business with 60 million customers, 60 million families. months from now?’ The No matter how many specialty stores they put in, in the next 10 years, customer doesn’t want they would not reach that customer base.” it that way, but we force Using a similar theory, Macy’s is putting Lush and FAO Schwarz them. Everybody is try- shop-in-shops into many of its stores. ing to be ahead of the With many Lord & Taylor sites considered overspaced, the depart- game. To me, it’s like ment store is renovating its units and reallocating fl oor space to create the movie industry. I Fortunoff jewelry departments and home stores with bridal registries no longer have to go to in the 47 Lord & Taylor stores within the year. In addition, it will spend a movie. There are so many screenings a year in advance. I go, ‘Wait a second, that just opened? $100 million to renovate Fortunoff stores and open additional units. Everyone’s seen it already.’ It’s too confusing.” Simon Graj of Graj + Gustavsen, an imaging and branding com- “Individual vendors can’t dictate when goods go on sale, but they should have more just- pany, said the industry’s focus needs to shift back from accounting in-time deliveries,” said Allan Ellinger, senior managing partner at Marketing Management and numbers to vision and product. Group. “No individual company can reinvent the wheel, but working as a group, they can align “Retailers are presenting inventory and are looking to get the merchandising with seasonality. It’s a one-time correction that would benefi t the entire indus- margin or the premium for the product and are asking the customer try, from retailers to vendors, in creating less markdowns.” to do the work,” Graj said. “The smart retailer of tomorrow needs to One thing designers have started doing is use 12-month fabrics to make clothes appealing contextualize the product, present it in such a manner that profi les regardless of the specifi c season. Lighter-weight fabrications and lighter colors in fall 2008 collec- it. The way retailers do that now is a cop out. They stopped being tions are more evident than previous seasons, retailers have observed, which should spur sales. merchants. They look at the numbers, what they sold last year, and Part of H&M and Zara’s success has been their fast-fashion formula that includes wear-now-buy-now they do the same thing.” pieces and collections that rotate the fl oors regularly to get the customer to keep coming back to view Merchants may reach for something special to grab shoppers’ at- new merchandise. tention in diffi cult times, but they can’t afford to overlook the basics, Markdowns, of course, will continue to be a reality, and there are strategies to make money advised Paco Underhill, managing director at consultant Envirosell. off them by creating preplanned sale product. “Form alliances with specifi c retailers to create “Nothing kills a business faster than a dirty store or being out of the best style in the cheapest fabric or the cheapest style in the best fabric, to get extra mar- stock,” Underhill said. “These are seminal issues. Merchants have gin while satisfying the sales period,” recommended Andrew Jassin, managing director of the ▲ to keep fundamental issues in sight and not put on a sour face.” Jassin-O’Rourke Group LLC fashion consultants.

quarter earnings gain of 28 percent. As it three additional Off 5th units next year. Off SUMMER NIGHTS = LONG HALTERS CHINESE T opens its fi rst New York store this year, the 5th operates about 50 units and last year Southern California boutiques are fi nding long As China prepares 310-store British chain Topshop is projected generated volume of just under $400 million. halter or tanks dresses are the must-have item to host the Olympics at $1.8 billion in sales and north of $300 for the season, a fashionable staple of beach- in August in the million in profi ts for 2008, a more than 10 WRAP IT UP ready comfort that can go from day to night with face of international percent increase. “In this time, just a change in footwear. At Malibu stores such criticism of its people are not as Legends and Musina, simple feminine styles human rights policies SALES TURN ON AT OFF-PRICE going to run are de rigueur, like a white cotton halter dress and a succession One bright spot in the otherwise dim retail out and buy from Loup Charmant for $385, and California of domestic crises, Chinese T-shirts are industry is off-price stores, with both Neiman an expensive Rising’s long organic cotton “Cleopatra” dress young Chinese are summer’s must-have items. Marcus and Saks Fifth Avenue reporting something,” in navy and heather gray for about $190. At showing support expansion plans and strong sales from its said Wendy Agoura, Calif.-based M. Frederic specialty stores, for their country with the summer’s must-have clearance units. “Over the last two years, Red, fashion owner Fred Levine said he can’t keep them in fashion item: the “I heart China” T-shirt. Shirts we have added infrastructure to support the director at Up stock, particularly Luna Luz’s knit halter and “hearting” Beijing and Shanghai have long been growth of this business,” said Burton Tansky, Against the bandeau dresses, Gypsy 05’s knit tie-dye halter staples for tourists, but the ones supporting chairman and ceo of Neiman Marcus Group, Wall, a 25-store dress, T-Bags’ and Pink Polka Dot’s rayon and China, with black text on a white shirt and fi ve last month. Three Last Call units are opening junior retail silk halter yellow stars on the red heart recalling the national soon, bringing the chain based in dresses. The fl ag, emerged this spring. The shirts’ meaning Saks Off Fifth is total to 27. “All Washington. dresses retail became universal, and their styles more diverse, expanding. the merchandise “They take what from $80 after the May 12 Sichuan earthquake. Versions in Last Call they have and try Loup to $165. now sport fi ve interlocking hearts recalling the “Peace scarves” by David Charmant’s stores are either to accessorize around & Young are selling. “Jeans have Olympic rings, the white-on-red Beijing Olympic from Neiman it.” Red, who built long taken a total logo within a heart, and red maps of China with Marcus stores or her business on capturing the fl eeting trends dresses backseat for slogans such as “Go and “One China, One goods purchased in the junior market, said lightweight, fringed, are a hit in now.” Levine Family.” Popular T-shirt brand Color Banner from one of our black-and-white checkered scarves by David & California. said. “All I’ve has released an edition with the national existing vendors. Young, often referred to as “peace scarves” have been doing is landmark of Tiananmen combined with the During this challenging time, sales at our Last been one of her bestsellers. “It is a lot easier to getting on the curlicues from the torch design, and another Call stores have remained strong,” said Tanksy. buy a $15 scarf than it is to buy a $100 pair of phone and depicting a map of China being held aloft by In addition, Saks Inc. said it will open jeans,” Red said. “That’s where it’s at.” reordering.” doves. ▲ 22 WWD, MONDAY, JULY 28, 2008

“Mall owners China, after opening a 9,400-square-foot fl agship there are very aggres- in May. “We’re looking over the next fi ve years for our EXPAND STRATEGICALLY sive to give very sales [in Greater China] to grow to at least $250 million favorable deals from approximately $30 million at retail today,” said in order to bring Lew Frankfort, Coach’s chairman and ceo, adding the respected company plans to open at least 50 stores in the Greater brands into China market over the next fi ve years. their centers,” For Bloomingdale’s, a deal in the Middle East Chehebar could happen soon. Saks Fifth Avenue already has two said. stores in the Mideast, one in Mexico, plans to open in “Although we Shanghai, and is said to be considering Kazakhstan. are in a diffi cult Lord & Taylor is looking to international expansion, environment, possibly through licensing. According to Lord & Taylor there are always chairman Richard Baker, “there is an opportunity in opportunities to ex- Asia and other markets in North America for Lord & pand your distribution Taylor to have stores” focused on American designers. into new accounts. Just this month, NRDC Equity Partners, L&T’S par- This becomes even ent, acquired Toronto-based Hudson’s Bay Co. Those more important when businesses will now be part of a holding company there are retailers that called the Hudson’s Bay Trading Co. The new holding are closing stores or company will represent more than $8 billion in sales, not getting credit ap- some 75,000 employees and 55 million square feet of proval. A wide account space in the U.S. and Canada. NRDC plans to invest base enables you to $500 million into the combined company. In addition, attract a broader con- there are plans to launch 10 to 15 Lord & Taylor stores sumer segment and in Canada. leverage your risk.” International operations can also make for a good Topshop is crossing corporate balance. “It helps to have a worldwide distri- the pond to enter the bution network, both in established and emerging mar- U.S. market in October kets as these are really becoming the driving force of with a 40,000-square- the business,” said Patrizio Bertelli, ceo of Prada SpA. foot store at 478 Giorgio Armani is counting on further retail expan- COMPANIES NEED TO SET THEIR SIGHTS GLOBALLY, Broadway, and Sir Philip Green, the retailer’s owner, sion worldwide to ease market-specifi c downturns. while at the same time seizing opportunistic real estate said he is scouting for additional New York locations. Armani will forge ahead with 50 new store openings in their own backyards. “If the right deal comes up, I would do it,” Green said. worldwide this year, including its fi rst two stores Retail expansion through directly owned stores “If I fi nd three, I will open three.” in India and the fi rst Emporio Armani fl agships in presents numerous opportunities to negotiate better Cartier International has diversifi ed to become Moscow and Beijing, after adding 49 stores to its prices on rent as competitors shutter units, to expand strong across fi ve regions of the world: Europe, the 471-strong retail network last year, including the e-commerce as gas prices increase and drivers stay Americas, Asia, the Middle East and Japan, according 12-story Armani Ginza Tower in Tokyo. close to home and for American brands in particular to Cartier ceo Bernard Fornas, “so when one region “Although we often say that the world is a small to sell their product abroad as the dollar makes U.S. slows down, the others make up some of the slack.” place these days, it still offers enormous scope for the exports a relative bargain. “I wouldn’t want to be dependent on only the U.S. Armani portfolio of brands,” Armani told WWD this For stores considering their own retail doors, prime or Japan right now,” Fornas said. “Some of my competi- spring. “Our medium-term strategy is to continue to real estate is opening up and rent prices are falling, tors whose business is mostly centered in those regions pursue our unique multibrand strategy, expanding and declining 0.1 percent nationally at shopping malls in continue to open stores in those markets. I don’t under- strengthening our brands and product lines in both ma- the second quarter. The national retail vacancy rate at stand that strategy. There is still liquidity in the world. ture and emerging markets.” neighborhood and community shopping centers is at It’s just moving around. Plenty of people are profi ting For Armani, that means more than fashion. This its worst in a decade, and regional malls are at their from the rise in oil and raw materials, for example. year will mark the opening of the fi rst Armani Hotels lowest point in more than fi ve years, according to real They are still spending. What they are looking for is & Resorts as well as the sales of the fi rst Armani estate analysis fi rm Reis Inc. As G-III Apparel Group real luxury. Over the last three years we’ve doubled Residences. illustrated earlier this month when it bought Wilsons our production capacity in the high jewelry ateliers. Polo Ralph Lauren Corp.’s three long-term goals The Leather Experts Inc.’s name and operations of 116 You have to create pieces that are absolutely extraor- all revolve around expansion: new merchandise and outlet stores, the weak economy is opening up plenty of dinary, pieces that live up to your customers’ fi nancial product development, expansion of direct-to-consumer retail options. status.” business and growth of international operations. As competitors close stores, Kohl’s plans to take ad- Just as the likes of Topshop expand to the U.S., U.S. “Today, the United States represents approximately vantage of real estate opportunities, said Kohl’s chief companies should be looking abroad for expansion. 65 percent of our branded sales with Europe account- executive offi cer Larry Montgomery. “We have a peck- For one, the weak dollar makes U.S. products a more ing for 17 percent and Asia and the rest of the world ing order,” he said, declining to say which competitor’s appealing bargain. Furthermore, while the U.S. econo- representing the remaining 18 percent,” president and locations made his list. my is being hard hit, some regions — including Russia chief operating offi cer Roger Farah told Wall Street LeSportsac plans to open fi ve stores this year “in and the Middle East — have growth opportunities. analysts in May. “Ultimately, we’d like to have the locations and rent deals that make sense in this type “American companies are highly regarded abroad, United States, Europe and Asia each representing ap- of marketplace,” according to Abe Chehebar, founder in the Middle East and Russia — markets where the proximately one-third of our revenues.” and ceo of Accessory Network, which produces hand- business is healthier, and brands should be focusing on Farah added that achieving this balance will “take bags and accessories for Calvin Klein, Tahari and them,” said Marvin Traub, co-founder of TSM Capital, some time...but I do believe that it will not be that far Karl Lagerfeld, and owns the LeSportsac and Ghurka an investment fi rm. off.” He added, “While the U.S. is still growing, the in- brands. Coach, like other fashion players, has its eyes on ternational markets are growing more quickly.” HotPockets

THE GROVE IS GROOVIN’ DISCO INFERNO segment of the annual $12.6 billion lingerie NAUGHTY BUT NICE There aren’t many destination retail centers True Religion Apparel Inc. is loving the business at retail has had annual sales gains The new “Sex and that expect to do better than last year. But The nightlife, thanks to the surprise hit of its of 15 percent to 40 percent and higher, the City” lingerie Grove in Los Angeles, developer Rick Caruso’s crystal-embellished Disco jeans. Despite retailers said. A main reason is consumers collection is creating outdoor faux-village mall concept, may be an a $262 price tag, women are snapping up can save money by letting their fi ngers do the buzz. It’s viewed exception. On a Saturday in June, the mall’s the boot cut in a dark wash that offsets the driving as they shop online for basic undies, as an aspirational 3,500–space Swarovski crystals sparkling on the pockets. bras and sleepwear, or sexy items for everyday line of naughty but parking structure The Grove in Los For a bit more spice, True Religion twisted the wear or special occasions. Among the popular sweet-looking bras, was just shy of Angeles is drawing inner seam to curve toward the back of the leg. sites are victoriassecret.com, barenecessities. undies, garters capacity. Last crowds. Retailers like M. Frederic’s Fred Levine are com, fredericks.com, herroom.com, freshpair. and corsets, year, The Grove’s getting a bump in business. The secret to True com and lovefi fi .com. Linda LoRe, president said Guido “Sex and the City” lingerie is 50 tenants, Religion’s success and chief executive offi cer of Frederick’s, said, Campelo, vice creating buzz and crowds. which include was sprucing up a “Our online business has been phenomenal.” president of marketing and innovation for Anthropologie, good-fi tting jean licensee Cosabella. “Since we sold out stock Coach, J. Crew, that customers twice before the movie came out, we’ve sold Michael Kors already loved with the line to 1,100 retail doors in the U.S. and and Nordstrom, a little twinkle internationally,” he said. Retail prices on had 18 million from the crystals, thongs are about $21 to $37; bras are $65 visitors, and Levine said. to $90; HotPants are $51; camisoles are reps said the $85; garters are $56; bustiers are $170, and center is on WHAT’S CLICKING? lounge pants are $110. track to do that Gas prices are or better this year. The Grove’s stores, too, soaring, but LOUNGE LOOKS have seen good times, with Barneys New so are sales of Sophisticated, dual-purpose loungewear York Co-op, along with stores like Kiehl’s and frilly things on that has a sportswear fl avor is a best-selling Theodore posting performances at or near the dedicated lingerie classifi cation at retail, and is among the top- top of their respective chains. “It’s not really Web sites, as well booking segments of innerwear for spring 2009, like anything else in town, so you can see as those operated vendors said. Popular ideas include softly why people come here,” said shopper Carla by specialty True Religion’s Disco jeans layered chemises and slipdresses with crop tops Neuhouse. stores. The online with Swarovski crystals. Victoriassecret.com is attracting customers. and unconstructed bras, as well as a variety of WWD, MONDAY, JULY 28, 2008 23 WWD.COM

LVMH Moët Hennessy Louis Vuitton chief Bernard A J.Crew store. Arnault agrees. “The economy today is driven by emerging markets,” said Arnault. “The growth has FOLLOW THE DEMOGRAPHICS been impressive. Soon they will no longer be emerging markets but emerged.” IT’S ALL ABOUT FIGURING OUT WHAT WOMEN WANT, AND LVMH has more than doubled its business in catering to those who still have the means to spend, even in hard emerging markets in the last fi ve years, with about 450 times. stores in emerging economies, from Russia and China Take the Baby Boomer. The largest demographic segment in to Brazil and Ukraine. He attributed LVMH’s success the U.S. today at 79 million strong, Boomers account for a third of in emerging markets to the fact that “we treat them the country’s population, spending about $2 trillion annually. With like they are developed....Our success is explained by the economy shrinking their retirement accounts and devaluing quality.” their homes, they expect to stay in the workforce far past the age Arnault said LVMH will not halt its aggressive ex- of 65, according to a June study from Packaged Facts titled “U.S. pansion despite the economy. “Every time we’ve been Baby Boomer Attitudes and Opportunities: At Home, At Work and [in a diffi cult economy] we’ve increased market share,” On the Road.” Everybody knows about her and knows she has lots he said. “We’ve started the year strong. We will not pull of dough to spend, but few are really addressing her needs. off [of the accelerator].” “It’s not that the challenges are new or startling — they have A willingness to reinvent has helped Guess Inc. been here all along and the business has refused to pay attention,” expand and grow. “We have diversifi ed our product said Edie Weiner, futurist and a principal at Weiner, Edrich, Brown from what it was 10 to 15 years ago,” Paul Marciano, Inc. “The aging of the population, it’s right in front of them.” Guess’ ceo, said. “Jeans make up barely 25 percent All that’s needed is young styles to fi t older bodies at affordable of total merchandise, where it used to be 75 percent prices, said Weiner. because we didn’t have solid merchandise in other “Come on,” she said. “There’s nothing new here, why aren’t they getting it? key categories. Now we are a complete lifestyle brand, It’s inertia, it is too much of a fascination for the next hot young new market from men’s and women’s apparel to accessories and with less attention to where the money is.” footwear.” Eileen Fisher has paid attention unfalteringly to her core Boomer customer The fi rm, which has changed its business profi le and has been rewarded with a nearly 25-year-old company that has enjoyed near from primarily a wholesaler to a retailer, has also constant 15 to 20 percent annual growth for the past fi ve years to become the $254 mil- grown geographically, with 391 stores in the U.S. and lion brand it is today. The Boomer population, with plenty of money to spend, if Canada and 607 stores outside of North American — 63 not perfect bodies, appreciates the brand’s forgiving silhouettes (including special of them owned directly. sizes, which comprise more than a quarter of revenues) and timeless looks, without “We have developed brand recognition on every “planned obsolescence,” which appeals to a demographic concerned more with in- continent,” said Marciano. “The key is we are in tune vestment dressing than trends. with our customers and have an open line of commu- “It’s the Baby Boomer phenomenon,” said James D. Gundell, vice president of nication with regional and store managers. This allows retail and e-commerce at Eileen Fisher. “As women get older and their bodies change, we offer options for a lot us to immediately react when something goes wrong of different body types. She is the consumer with the disposable income today.” with a product. We don’t have to wait three months to Chico’s Inc. soared for years by catering to this forgotten middle-aged woman, delivering 113 consecutive hear our customers didn’t like a handbag.” months of same-store sales gains, until 2006. But for the last two years, the company has reported disappointing China, India and the United States are the three results, for which fashion blunders have been blamed. Having someone who understands the Boomer mental- most populous nations today, but India will surpass ity and desire for style is also key, and Chico’s faltered with the departure of founder Marvin Gralnick, whereas China by 2030, while the U.S. will remain third, ac- Eileen Fisher continues to spearhead her brand. cording to the United Nations. Boomers are the easy example. But they are far from the only ones to watch. A.T. Kearney, which released its own Retail After the Boomers, the teenagers and twentysomethings that make up Gen Y are the largest U.S. population Apparel Index report (an offshoot of its Global Retail at 75 million. Development Index) in June, found that top emerging Females between the ages of 13 and 24 spent $33.7 billion on clothing in the 12 months through April, accord- countries, such as Brazil, China and India, were ripe ing to The NPD Group, a Port Washington, N.Y.-based market research fi rm. That compares with $16.9 billion for apparel retail expansion opportunities. purchased by 25- to 34-year-old women, including some older members of the Millennials, and $29.8 billion by At $511 billion in estimated retail sales this year, Baby Boomers between the ages of 45 and 64. India’s retail market is larger than ever and drawing And, of course, there are the wealthy luxury consumers, which fall into several age ranges. As Burt Tansky, both global and local retailers. Gross domestic product chairman and chief executive offi cer of the Neiman Marcus Group, quipped, this customer may be tightening is projected to grow by more than 8 percent in fi scal her belt, but that belt is still made of alligator or ostrich. year 2008. India’s overall retail sector is expected to Ethnicity plays into the equation. Latinos are the second-largest population group in the United States, rise to $833 billion by 2013 and to $1.3 trillion by 2018. growing by 1.4 million in 2007 to 45.5 million people, or 15.1 percent of the total U.S. population, according to Consumer spending centers around youth, as more the U.S. Census Bureau. Hispanics are also the fastest-growing demographic of young people, according to the than 33 percent of the country is below the age of 15, Hispanic Youth Culture Study ’07. There are 40.7 million African-Americans, the second-largest minority group. according to Kearney’s report. Aside from pure numbers, the fallout in the housing market and higher gas prices are reordering how con- In 2007, Chinese GDP grew at over 11 percent, and sumers think and live. its retail market was $886 billion, according to the re- “There will be a whole transformation of what people view as their house,” said Allen Questrom, former port. chairman and ceo of J.C. Penney Co. Inc. and Federated Department Stores and a member of Wal-Mart Stores Brazil is the dominant country in Latin America, Inc.’s board. “They’re going to want to get close, they’re going to want to live in cities, they’re going to want to in terms of GDP — it grew at over 4 percent in 2007. have more use of public transportation. That’s going to change even longer-term the value of those homes that Its retail market was $400.2 billion in 2007, according are now in the hinterland.” to A.T. Kearney. With over 190 million people, Brazil “A good retailer is a person who serves their clientele. They have to be aware of what’s motivating, what’s chang- has the second-largest population in the Western ing the lives of their customers and adjust their inventories to accommodate,” said Questrom. “Most successful Hemisphere behind the U.S. Over 60 percent is under retailers have to be very aware of what’s happening outside their own world.” the age of 29. Dov Charney, founder of Los Angeles-based chain American Apparel, attributed the company’s continued ▲

separates, including couple of color ways,” said brand showroom Beauty ambassador and socialite Tinsley long and short director Olivia Kim. The summer style sold Mortimer. The limited edition item, tunics, tanks, baby out in Opening Ceremony’s New York and called Dior Addict Ultra-Gloss Refl ect dolls and camis Los Angeles stores before Memorial in Tinsley Pink ($24.50), was launched paired with pull-on Day and was one of Barneys New exclusively at Saks Fifth Avenue in May. or drawstring pants, York’s best items from the brand, Also at Saks, Hermès’ newest scent, capris, boxers and Kim said. The bodysuit will be Un Jardin Après La Mousson, is a tap pants. Caftans, back in more colors and fabrics for bestseller, priced at $125 for 100 especially luxe spring 2009. ml. The Chloé fragrance, Bond No. Gucci’s top-selling women’s scent. embroidered looks in 9 scents and Tom silk, are in demand BRIGHT SPOTS IN BEAUTY Ford’s Private GUCCI MUSCLES IN even at prices Although the beauty market is Blend fragrances Frida Giannini, Gucci’s creativ e director, starting at $1,200, feeling the pinch, there are rays have also been hot said she gave her debut women’s scent, said Josie Natori, of light thanks to new product at Saks, as have mascaras from Dior Gucci by Gucci, a strong personality. While chief executive Natori’s lounge pieces. launches — especially in the and Guerlain, and skin care items from the fragrance’s juice is peppered with exotic offi cer of Natori Co. color cosmetics market — and Trish McEvoy, SKII, La Prairie and masculine-tinged notes of Tiare fl ower and Key fabrics include slinky knits, jerseys, rayon classic fragrances, which La Mer. Popular items at Sephora patchouli, its television advertising campaign blends, soft bamboo blends, Modal and organic continue to attract consumers, include High Defi nition Microfi nish checks all the cool boxes: director David Lynch cotton, she said. said Karen Grant, global beauty Powder from Make Up For Ever ($30), captured three models dancing languidly to industry analyst at The NPD Group. the retailer’s the tune of Blondie’s “Heart of Glass.” The ALL FOR ONE “Newness in color cosmetics, own Summer winning combination saw the amber glass What, exactly, does a girl wear with the high- and smaller brands, are getting Blockbuster bottle adorned with a gold horse-bit pendant waist shorts, Fifties full skirts and rompers traction,” she said, adding that in Palette ($30) sell strongly when it launched last fall. In its that are trend darlings? This season, Opening the fragrance market, “women’s and Medi- fi rst three months, Gucci by Gucci ranked Ceremony proposed a new fashion basic — an classics are doing well.” She Matte Oil as the top-selling fragrance in Harrods, adult “onesie” — and customers clamored cited scents from Chanel, Dolce Control Lotion Debenhams, House of Fraser and Boots The for it. The $180 crotch-snap bodysuit worked & Gabbana, Estée Lauder and SPF 20 from Chemists in the U.K., in GUM in Russia and because its fi ne knit gave a sleek, tucked-in look Diesel — a newer entry. Cosmedicine second best in Neiman Marcus in the U.S. — for waist-emphasis dressing, but was not clingy A new color item that’s been ($42). and according to many retailers, it continues like the leotard bodysuits of yore. “We modeled tagged as a hit is a shade Opening Ceremony’s Sephora’s Summer to sell well. The 1.6 oz. eau de parfum retails ▲ it after a Fifties bathsuit and did it in stripes in a of lip gloss created by Dior ‘onesie’ is a hot seller. Blockbuster. for $80 and the 2.5 oz. size is $100. 24 WWD, MONDAY, JULY 28, 2008 WWD.COM

success amid a sag- ▲ ging economy— it posted an impressive 37 percent EXPLOIT TECHNOLOGY fi rst-quarter increase in same-store sales and a 42 ALTHOUGH IT’S NOT A GREAT TIME TO percent increase for the sec- undertake major technology initiatives, it’s a ond quarter — to low price good time to invest in the Internet, say analysts. points and a brand appeal That could include upgrading one’s Web site; centered around expanding e-commerce capabilities; advertising an urban lifestyle. and selling on other companies’ sites; posting American Apparel stores fashion shows on YouTube, and getting involved are in cities with relatively with e-mail marketing, social networking sites, few drivers and more rent- video and avatars. ers than homeowners — “Virtually all online retailers are still report- populations less affected by ing strong numbers or at least stronger than spikes in gas prices and the other store sales,” said Forrester retail and collapsing U.S. residential technology analyst Sucharita Mulpuru. “The housing market. argument can be made that sales are shifting from off-line to online, in June as executive vice president after leading the retailer’s “Many of our stores in so it probably makes sense to invest in that kind of technology.” Internet and catalogue businesses since 2001. North America are in cities According to Forrester, last year U.S. online sales (excluding Experts caution that it’s not the time to invest in major new with good public transport travel) were $174.5 billion, which is expected to climb to $204 bil- technology initiatives such as enterprise resource planning (ERP), and few people have cars. lion this year. Of that, $30.1 billion was spent on apparel, acces- warehouse management systems, aligning databases, customer That’s a big part of our chain sories, footwear, jewelry, cosmetics and fragrances. That fi gure is relationship management or loss-prevention programs. Even tech- and identity: It’s all about our expected to reach $35.4 billion this year. nologies known for a quick and strong return on investment, such as locations,” Charney said. “We Forrester adds that luxury consumers do more shopping online price optimization, scheduling software and self-checkout are not don’t have expensive prod- and spend twice as much as other consumers. Last year, the size magic bullets, said Forrester’s Mulpuru. ucts and they are basics. The of the luxury market for just apparel and accessories online was “Theoretically they can all help reduce costs but the problem is you average ticket is not very high estimated at around $1 billion, and luxury companies are fi nally have to put in processes and people who know how to use the software — under $100 for a few items, catching on. Recent entrants include Prada, Louis Vuitton, Yves to see the cost savings. Any big technology investment will take a year to and the average item is $22.” Saint Laurent, Stella McCartney, Boucheron, Bulgari, De Beers and see results and you have to take the hit now on your line on your P&L.” At its core, retailing is a jeweler Karen Karsh, and in the near future Calvin Klein and Pucci Retailers spend about 3 percent of total revenues on information game of giving consumers are expected to add e-tailing. The Limited, which initially didn’t technology on average. They are unlikely to cut essentials such as what they want. believe Express and Limited Stores should have e-commerce, has fi - spending on data security, given all the bad press that has attended “Many retailers don’t nally joined the fray and will launch its fi rst transactional Web site in losses at companies such as TJX. know what their custom- September, which it expects will account for 20 percent of the fi rm’s Companies should be creative and use what they already have to ers want,” said Elaine total business in fi ve years. juice sales in the short-term. Hughes, president of the “I think eventually every company that runs stores will have e- “They should be calling on companies like Google to help them executive search fi rm E.A. commerce,” predicted Mark Lee, chief executive offi cer of Gucci, a put in place tests so they understand what the search-engine mar- Hughes & Co. “One of the leader in online commerce that launched e-commerce in 2002 and keting impact is on offl ine sales,” said retail technology analyst many reasons why [J. Crew handles the technical side in-house. “Whatever the initial fears or Patti Freeman Evans of JupiterResearch. They should also be using chief] Millard “Mickey” reluctance, people are embracing it. It doesn’t harm the brand in point of sale, online reviews and customer service information they Drexler is as successful any way, and it’s also very profi table.” already have to more precisely target customers and speak to them as he is, is that he is in his Oscar de la Renta sees value fi rsthand in the latest technol- in a relevant way, she said. “It takes resources but potentially now stores on a weekly basis ogy. After his May resort show, his biggest Russian customer, Aizel is a great time to do that to eke out extra dollars in average order talking to his customers Trudel, who also is a partner in his Moscow store, placed an order value. Potentially that will create conversion opportunities and di- and making changes in re- for more than $1 million from looks she viewed on YouTube, a half minish returns,” she said. sponse to what she needs.” hour after he showed in New York. Finally, “retailers shouldn’t just hunker down and try to get by Keeping up with con- Net-a-porter.com, a multibrand luxury e-tailer, which did about $75 through discounting, but should try to innovate and drive the top sumers can make mer- million in sales last year, has helped the Web lose its low-rent reputation. line,” she said. chants look like magicians. “Where this is coming from is consumer demand,” said Net-a- Burberry, for example, was fortunate in making IT investments “Some people just have porter founder Natalie Massenet. “Customers now expect it, par- over the past few years. that touch and that taste ticularly from the big brands. [Not having e-commerce] would be “What we’ve done over the past couple of years is place the and that ability,” said like going to a store at one in the afternoon and having a sign on the investment in the business where it needs to be placed, in terms Laurence C. Leeds Jr., door saying, ‘We’re currently not selling from this store.’” Neiman of the IT systems, in terms of the supply chain functions,” said chairman of Buckingham Marcus’ Web site is its biggest store, and Brendan Hoffman, presi- Stacey Cartwright, chief fi nancial offi cer at Burberry. “We’ve now Capital Management. “Why dent and ceo of Neiman Marcus Direct, projects it will grow to a $1 made those investments and are now yielding the benefi ts. Part does everybody want to billion business in several years. Hoffman points out the Web site of the benefi ts are…being able to ship product on time that we take out the same girl? also provides the retailer with longer arms. hadn’t been able to ship before on time, which therefore protects There are some people VF Corp. is looking to e-commerce to help drive its brands the business in other ways. Having our wholesale sales up 43 who just do it better and abroad, as well, proving luxury companies aren’t the only ones tap- percent in the quarter is fantastic, it means we got the product have that talent and some ping the Web’s potential. in when it was meant to get in to wholesale accounts, it reduces people who make clothes And with sales of more than $1.5 billion, jcpenney.com is more the risk of any cancellations down the track when you’re late, that are more creative. than the fastest growing division at the company. “We use jcpen- and also increases the possibility of reorder. So it’s not just about Why does everybody you ney.com as an information resource for customers and associates, effi ciencies to drive cost savings per se, it’s about effi ciencies to know, virtually, say, ‘Gee, I and as a way to get instant and invaluable feedback from shoppers drive opportunities.” love J. Crew?’” through product reviews or blogs,” said John Irvin, who retired — With contributions from WWD Staff HotPockets

PELLINI ADDS Buckle are up 51.5 percent for the year-to- AEROPOSTALE FLYING HIGH SPICE date period and the retailer has posted four Aéropostale Inc. is also a mainstay among teen These consecutive months of more than 20 percent shoppers. Shares of the mall-based retailer are resin and comparable-sales growth. The key to their suc- up 18.6 percent for the year-to-date period. semiprecious cess has been innovative marketing and a mix With the addition of Mindy Meads as chief stone of unique branded merchandise and private merchandising offi cer last year, the company necklaces labels, under such labels as Affl iction, Archaic has taken a new focus on balancing core ba- help spice and Sinful, as well as its mom-and-pop corpo- sics with fashion items, while still remaining up summer rate culture, which emphasizes customer ser- true to its mission to deliver value product. wardrobes vice, according to analysts. Denim makes up And teens are taking notice, for less 45 percent of total sales, as the company car- with same-store sales than the ries brand names such as Big Star and MEK, outpacing competi- Aéropostale is having a strong year. investment as well as mainstream players, like Lucky tors. The company Pellini’s necklaces are selling. in a lot of Brand. The Buckle has 371 stores primarily is also working on to the Westpac-Melbourne Institute Survey larger wardrobe items. The colors, saturated throughout the South and West. turning around its of Consumer Sentiment. But AC Nielsen but not too bright, have resonated with contemporary chain Australia said the “Lipstick Index” is consumers, said Nancy Pearlstein, owner of Jimmy’Z and an- holding true to form. Although consumers the Washington, D.C.-based boutique Relish. nounced plans are tightening their belts in other areas, AC The Pellini necklaces come in reds, oranges, to roll out a new Nielsen said the cosmetics, lingerie, costume pinks and turquoise and vary in length so concept targeting jewelry and domestic Champagne sectors have they can be worn long or wrapped up to a younger demo- experienced recent sales spikes, with some look chunkier. “It can add a lot to an outfi t graphic in 2009. recording spectacular double digit increases. a woman already has; it spices things up,” L’Oréal Paris reports a 54 percent increase in Pearlstein said. The necklaces retail for $495 THE LIPS STICK lipstick sales from April 2007 to April 2008 to $1,000 depending on the stones used and Australian — specifi cally in the specialty distribution their length. consumer channel, where it retails the Colour Riche Lip confi dence fell to Colour, Colour Riche Star Secrets and the NOT BUCKLING UNDER a 16-year-low in Colour Riche Made-for-Me Naturals lines. Most Teen retailer Buckle Inc. is bucking the dev- June, according of the activity has come from the Colour Riche astating economic trend. While investors are Made-for-Me Naturals line for $22.60 (U.S.), pulling away from most retailers, shares of Buckle is a teen favorite. Colour Riche Made-for-Me naturals. which was launched during this period. Every little thing she does is . . .

WWD

MAGICAugust 25, 26, 27 2008 Mon. Tues & Wed: 8:00 AM – 6:00 PM The Las Vegas Convention Center www.magiconline.com

e-o-e-o-e-o-e-o-e-o-e-o-e-o-e-o 26 WWD, MONDAY, JULY 28, 2008 WWD.COM Berlin Fashion Week Shows Its Style

By Melissa Drier Scherer Gonzales erlin positively bounced back for spring 2009 with an Bupbeat round of runway and trade fair activity during fashion week here. Under the umbrella of Mercedes-Benz Fashion Week Berlin, the 24 runway shows from July 17 to 20, both off- and on-site, presented a lively spectrum of contemporary fash- ion from German and international designers. The same can be said of Premium, whose 450 exhibitors attracted 15,372 visitors, slightly down from last season’s 16,354. Numerous satellite happenings and parties around town underscored Berlin’s edgy attraction, while the fi rst Elle Fashion Star awards at a star-studded event illustrated the capital’s grow- ing glamour potential. The week’s organizer, IMG, also estimated that more than 15,000 visitors came to the new venue on Berlin’s historic Bebelplatz, compared with 10,000 last season. The shows were well attended and generally well received, and ran the gamut from creatively commercial to crisp and clean, chicly clubby, captivatingly crazy and even craftsy. There were multiple highlights in the various stylis- tic camps. First up: The Seventies are alive and well in Berlin. Or, perhaps more accurately, the late Sixties on, as Michael Michalsky made clear via his 1968 photo backdrop at his show in a bus maintenance depot in the wilds of the Wedding neighborhood. And, while he came up with hand- beaded protest T-shirts proclaiming “No Blood for Oil” and Hugo Boss integrated elements of police riot gear uniforms in his tai- loring, the overall message, like his semipsychedelic posters all over Berlin, was one of joy. The colors were luminous, such as a viola silk back- button blouse worn with beetroot purple suede pants. The “Fillmore” fl ower-power prints, created in collabo- ration with Japanese artist Shinpei Naito, showed up on leather bags and shoes, ruffl ed volant belts, denim bubble skirts, satin blouses and leggings, the latter sometimes peeking out of fl owing print chiffon gowns, long skirts and evening tunics. Strenesse Blue designers Victoria and Gabriele Strehle also tapped into the era’s refi ned side and made it theirs. Prints charmed in a rose-and-gray georgette snake-print frock, ac- cented with a dot print on the bib and hem; the hot lips crepe de chine shirtdress; a lozenge print chiffon shirt to wear with cropped plaid pants, or a crisp black-and-white cotton print shorts suit. Fluid knits included fl oor-length tank dresses; a lilac polo dress belted in brown and accessorized with a lemon leather tote, and a bloused, jersey slipdress smocked on the bodice and hips. Tanks came in crepe de chine and were sometimes sequined or super plain to wear with short shorts and cropped suede jeans, and Strenesse Blue even managed to get one popular pitfall — harem pants — to work. “It was extremely positive from the color standpoint,” commented Kati Wempe, director of the specialty store Kaiser in Freiburg, Germany. “The silk pants in fl owing Michalsky

Michalsky qualities, the balloon pants, all looked convincing. We have to be careful with trans- parency, but otherwise, it was all very inspiring.” This season’s Karstadt New Generation Award winner, Marcel Ostertag, is anoth- er Seventies fan, his interest focusing on the glitzier later years. His hallmark, the trenchcoat, was shown with feathers adorning the sleeves and sides, with pastel satin inlays, and in sparkling metallic red with hot pink accents. Tiny blousons zigzagged with black-and-silver lightning bolts came fringed in crystal or merged red metallic and hot pink satin. True to form, Hugo Boss kicked off fashion week on Thursday, taking over a run- down harbor warehouse for the second Hugo collection by Bruno Pieters. The de- signer kept Hugo sharply tailored and strictly minimal, citing legendary female pilot Elly Beinhorn as well as Bauhaus architecture as his main inspirations. But the bow- tied looks on androgynous models had an even stronger Weimar feel. Spring’s ubiqui- tous HotPants were worked more like tap pants, and the little waiter’s jackets, vests, cropped double-breasted blazers and understated shift dresses all added up to one of Berlin’s most clear-cut fashion statements. On the other end of the spectrum, London-based Basso & Brooke presented a retro- spective lineup of their over-the-top creations. The 2004 winners of the London Fashion Fringe award piled on jewels, wild digital prints, pieced chevron furs, wired ruffl es, huge belts, historical silhouettes, Stephen Jones hats and printed leggings in looks one spectator dubbed “Lacroix on LSD” or “Alice in Wonderland meets Peter Max.” When deconstructed, the outfi ts had a lot of wearable — and salable — parts. “When we started doing tights and leggings three years ago, we sold a few pairs. And then it surged to 200 to 300 a year,” said Bruno Basso. And when he and co-designer Christopher Brooke, the digital-print specialists, bring their Aeffe-produced and -distributed collec- tion to New York at the end of the month, they will be showing their simplest styles. Still, there is a clientele for the major pieces in Russia and Saudi Arabia, they said, “and it was interesting for us to have all these pieces out there on the runway.” Berlin newcomer Scherer Gonzales also excels in fashion artistry. Trashy new-rave elements, such as plastic neon green shoulder straps and latex HotPants, contrasted with pleated taffeta and tailored bodices, gave the sense of a society lady gone techno in underground Nineties Berlin. Heavy-versus-light appeared to be the main theme, with delicate fl owers trapped within the plastic see-through heel of platform shoes, light chiffon dresses trimmed with neon plastic or a sequined ballgown train that was as padded and heavy as a winter eiderdown. The club generation is clearly growing up — at least in terms of the fashion they’re propagating. Young Berlin designer Kilian Kerner cast his vote for dresses, short and Scherer almost innocent or long and diaphanous. And his offi cial new theme song, “Head Over Gonzales Heels,” played by his favorite Berlin band, Splinter X, and their Bowie-esque lead Continued on page 28 MAGIC MAN August 25, 26, 27 2008 Mon. Tues & Wed: 8:00 AM – 6:00 PM The Las Vegas Convention Center www.magiconline.com

Designer, casual, contemporary, streetwear, apparel, footwear, accessories and… introducing S.L.A.T.E., a juried collection of progressive, skate, surf and street.

AKA: The Total Package. 28 WWD, MONDAY, JULY 28, 2008 WWD.COM

Kilian Kerner Strenesse Berlin Shows Its Fashion Face Blue Continued from page 26 singer, Ben Ivory, hinted at a growing romanticism in the scene. New York-based German designer and sometimes bad boy Kai Kühne made his fi rst Berlin appearance with no tussles to speak of. Instead, he presented severe tailoring and traditional city-girl cuts in funky techno materials. Below-the-knee pencil skirts and sleeveless shift dresses, with underarms cut away to the waist, were updated in black leather or viscose. And strap- less minidresses and high-waisted miniskirts were given a fu- turistic twist using gold or bronze padded panels. Silhouettes, meanwhile, were Space Age Klaus Nomi-style, accentuated with cutaway V-shaped backs and sharp padded shoulders. Appropriately enough for a techno-gone-glam collection, Joop Jeans showed in a former factory space behind the electronic music club Berghain. Inspired by Nineties techno, robots and ki- monos, Dirk Schönberger sent models down the runway in neon green or pink latex pantyhose under voluminous Japanese-style wrap dresses. Neon plastic hats, leather miniskirts and studded shoulders gave more than a nod to the early Nineties club scene in Berlin, giving a darker, more German take on the brightly colored happy Nu Rave look that has emerged over the last few seasons.

You can get the information you need really“ easily and [the show] gives you a

chance to broaden your understanding Hugo Boss of what each label is all about. — Diana Sponsel,” Maingold

For many Berliners, the climax of fashion week was Vivienne Westwood’s Anglomania show, which culminated in cheers and a standing ovation. Westwood made up for not attending Berlin last season by sitting in the front row next to actress Kim Cattrall — and the designer was truly forgiven by the local press when she sent one model down the runway with a cheeky polo T-shirt emblazoned with the word Berlin across the chest. The collection, in bright green, red, yellow and fuchsia, was as festive as the audience’s mood, with grape prints alluding to bacchanalian feasts. The main infl uences were Greek antiquity- inspired draped column dresses and, of course, the obligatory pi- rate references with cuffed boots, slashed striped jersey tops and dresses and big swashbuckling leather belts. This time around, though, things also were dressed up with prom-style skirts, stiff with Fifties petticoats, but almost mini in length. The Premium exhibition had a sunny vibe and exhibitors said they were pleased with the quality of the visitor turnout. Retailers such as Diana Sponsel, buyer for the two Maingold boutiques in Würzburg, Germany, were equally satisfi ed with the show. “This is a great trade show that works really well,” she said. “You can get the information you need really easily and it gives you a chance to broaden your understanding of what each label is all about.” Sponsel, who brought four of her 25 employees to Berlin, said she was particularly impressed by the label Drykorn. For spring, she is buying washed-out jeans, checked blazers, soft leather jackets, long hippie dresses and knitted belted cardigans. “Colors for next summer are really bright, and the real big thing will be scarves.” Norbert Klauser’s second edition of Stark at an old switch- ing station in Prenzlauer Berg was again atmospheric, but at- tendance remained light. Another weak link in the chain was Project Gallery, showcasing young avant-garde designers in two gallery spaces in Mitte. While the designers themselves and the concept of linking fashion and art showed promise, the locations were out of the way and attracted little attention. — With contributions from Damien McGuinness

September tracing the history of the house. “It was fun coming anniversary celebrations in October are in the works. This being across our fi rst line of bags customized by an artist in 1971,” said Diesel, don’t expect a birthday cake and traditional party favors. Fashion Scoops managing director Jean Cassegrain of one archive line unearthed In addition to the opening that month of the company’s new Milan for the project, designed by the French divisionist painter Serge fl agship, the premium denim and sportswear fi rm will hold 18 KATE SPADE APPAREL: Since Deborah Lloyd joined Kate Spade as Mendjisky. “As far as I know, it was the fi rst example of a leather parties around the globe, beginning in Tokyo and ending in New creative director and co-president a year ago, speculation has goods house collaborating with an artist,” he said. Other projects York, that will also be shown on diesel.com. The fete will be a abounded about the accessories brand diving into apparel. Now in the pipeline include a new online customization service for “democratic” affair: The buzz is that Earth, Wind and Fire, Snap there’s a timeline. Spring is the fi rst full season with Lloyd’s stamp September, proposing perforated initials for the house’s new leather and Faithless will likely be holding concerts — one group for each on the line, and the spring collection has more apparel than ever Le Cabas tote, and a decorative, limited edition range of decade. The only big question mark? Which time zone Diesel before, Lloyd said. But for spring, the clothes will sell only in Pliage bags for the holiday season that includes Native chief Renzo Rosso will choose to toast his company. Rosso, in the Kate Spade’s own stores, which will serve as a test lab for fi t. American, Scandinavian and African themes. meantime, has been sporting a gold signet ring given to him by As early as fall 2009, Kate Spade may start wholesaling the Viktor Horsting and Rolf Snoeren to mark the beginning of their new apparel — in more than capsule collections but less than SAAB STORY: Beirut couturier Elie Saab has partnership, and is busy putting together his own TV channel. full collections — to other retailers, which include opened his fi rst address in the Saks Fifth Avenue, Bloomingdale’s and United Kingdom, a shop-in- A PRINTED WORLD: Gap in the U.K. has teamed with Liberty fabrics Nordstrom, according to Craig Leavitt, the shop on the eveningwear fl oor to create a four-piece capsule collection of shirts and dresses for $90 million brand’s co-president and chief of Harrods. The shop, with an its high summer collection. The line comprises three styles of operating offi cer. If not for fall ’09, the apparel undulating wall and several tall shirt and one shirtdress, which are all made from Liberty’s Tana will defi nitely wholesale by spring 2010, said pivoting mirrors, carries a selection Lawn cotton and printed with one of four delicate fl oral prints from Leavitt. The launch comes at a time when retailers of ready-to-wear, accessories and Liberty’s archive, called Glenjade, Nina, Eloise and Fairford. The are looking to update what once were called bridge elaborate evening gowns, for which collection is part of Gap’s Design Editions series, and each piece fl oors with personality and pattern-focused lines like Saab is known. Meanwhile, Saab said has a purple Liberty swing tag alongside a Gap swing tag. Tory Burch and M Missoni, which have similar price he is developing a home line, which he Prices range from 35 pounds, or $69, for a short-sleeve points to the Kate Spade apparel offerings. will use for the hotel he is designing at cotton shirt, to 45 pounds, or $89, for the cotton dress, and the the Tiger Woods resort in Dubai. collection launched at selected Gap stores in the U.K. earlier this LONGCHAMP LOOKS BACK: Rounding out its 60th month. A spokeswoman for Gap U.K. said the company plans to anniversary celebrations, Longchamp plans to release Longchamp’s African Pliage bag PARTYING AROUND THE GLOBE: Diesel continue the collaboration into the fall season. She added that an eponymous, 192-page coffee table tome this for the holiday season. turns 30 this year and big plans for the there are no plans for the collection to launch in the U.S. Introducing...

ECOLLECTION at

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I see trees of green, red roses too... 30 WWD, MONDAY, JULY 28, 2008 WWD.COM

WASTING NO TIME MAKING FRIENDS: Though Rating the Most Competitive Retailers Nina Garcia serves as editor at large at Elle through season fi ve of “Project Runway,” it By Sharon Edelson accessories retailer take a page from MEMO PAD seems she’s already getting a head start on Victoria’s Secret, which created the Pink her fashion director duties at Marie Claire. NEW YORK — Jack Welch, the hard-driv- brand to appeal to younger customers Her new gig offi cially begins Sept. 2, but sources close to the magazine say Garcia has ing former chairman and chief executive while protecting the sexy image of its already moved into her offi ce, the former digs of Tracy Taylor, who was dismissed in May officer of General Electric, had a say- core brand. to make way for Garcia. The “Project Runway” judge also is said to be conducting “run- ing: “If you don’t have a competitive ad- Evidence of the lackluster econo- throughs” for fashion shoots for the January issue. Sources said Garcia’s requests for vantage, don’t compete.” Gary Williams my could be found in the presence of high-end designer wares to be featured in fashion spreads can at times be at odds with would tend to agree. chains such as Family Dollar Stores Nina Marie Claire’s more mass-market sensibilities. Williams, the founder of wRatings, an Inc., which weighs in at number three. Garcia A spokeswoman for Marie Claire said, “Nina is on contract independent research fi rm that annually Interestingly, everyday-low-priced Wal- with Elle that prohibits her from working for Marie Claire ranks the most competitive retail and Mart Stores Inc. is absent from the 2008 before Sept. 1. She has been in the offi ce only to work out her consumer goods companies, believes a list. “Wal-Mart is doing well,” Williams travel schedule for the European fashion shows this fall.” fi rm’s success rests on its ability to earn said, “but Wal-Mart is not a choice that Garcia’s move to Marie Claire happened before the “Project a consistent profi t and protect it — that’s consumers enjoy making. They don’t Runway” judge fi nalized her contract to appear on the show’s the competitive advantage. say, ‘Oh great, I can go to Wal-Mart sixth edition, which will air on Lifetime instead of Bravo. On The 2008 Most Competitive Retail and now.’ Will Wal-Mart do well in 2008? Friday, a Weinstein Co. spokeswoman confi rmed Garcia has Consumer Goods Study, sponsored by Probably, because they’ve got everyday re-upped, meaning all of the principals — herself, Michael Kors, software provider SAP AG, lists 20 com- low prices. If there are other choices, Tim Gunn and Heidi Klum — will move to Lifetime with the reality panies in each category. On the retail like Family Dollar, consumers will go program. Does that mean Marie Claire has been confi rmed there. Family Dollar is sort of a Wal- as the offi cial magazine partner? Sources close to the show Mart alternative.” say the deal has been done, but the Weinstein spokeswoman

Other apparel retailers on the list are MARK VON HOLDEN/WIREIMAGE PHOTO BY declined to confi rm Friday. — Stephanie D. Smith Gap Inc., Ross Stores Inc., Neiman Marcus Inc., American Eagle Outfi tters Inc., J. TWO DECADES OF FASHION: Twenty years without a divorce is reason for celebration. The Crew and Nordstrom Inc., (numbers International Herald Tribune plans to host a party during Paris Fashion Week to honor seven, 11, 12, 13, 14 and 16, respectively). Suzy Menkes’ two decades as fashion editor at the Paris-based newspaper. Iconic pages Williams said Gap appears on the from Menkes’ career at the IHT will be blown up and exhibited at the celebration on Sept. list year after year, probably due to 27 at the Palais Galliera. The oversized pages will remain on exhibit during the duration high brand recognition. “We keep see- of Paris Fashion Week. — Robert Murphy ing Gap and they should be doing much better than they’re doing fi nancially,” WATCHING THE FAMOUS: Ebel and Movado are continuing on Coach captured the second spot in the study. he said. “They have started to make their celebrity route for fall. Gisele Bündchen is back for Ebel some headway on the economic side. and she’s wearing nothing but the new Beluga watch and a side, Publix Super Markets Inc. captured They’ve turned a corner at Gap. We be- bedsheet. Craig McDean shot the model to evoke a sense of the top slot for the second year in a row. lieve that based on the ratings, they’ll femininity, mystery and luxury — the last campaign had a bit Williams suggests the fact that Publix have steady performance for the rest of more edge and was shot in black and white. Derek Jeter of the is employee-managed has something to this year.” New York Yankees is also back as the face of Movado. The do with the food retailer’s success. “If On the consumer goods ranking, brand is introducing the Derek Jeter limited edition watch for you’re an employee and you own stock, Williams notes more cosmetics com- Series 800 this fall — and Jeter himself was very involved in you’re going to do a better job,” he said, panies than in previous years. “Estée the design process, which includes three different versions. adding this should be incorporated into Lauder moved from number 34 to num- Only 100 pieces will be available and a portion of the sales will best practices for many fi rms. “Why don’t ber nine,” he said. go to Jeter’s Turn 2 Foundation. Brigitte Lacombe other companies look at giving employ- While there’s little pricing power in shot Jeter, as well as actresses Mía Maestro and ees stock? It shows up in their customer apparel, cosmetics is one of the few cat- Kerry Washington for Movado. service rankings.” egories that has it. “It’s a form of a small Movado Group Inc., the parent company Coach Inc. holds the second spot on indulgence,” Williams said. “Revlon for Ebel and Movado, is also introducing the list this year. “Coach has had great [number 16, up from 38 in 2007] typically a new campaign for Concord, a brand that economic profit for years,” Williams doesn’t do well fi nancially. Revlon’s re- was relaunched last year. Mary Leach, chief said. “It keeps getting better. Coach is ally started to come around on the con- marketing offi cer, said the new designs will enormously consumer-oriented and has sumer side. They’re in the right category be shown in a series of product shots, sans a huge database of what consumers want in 2008.” celebrity, since the Concord customer tends to and tracks [products] from all over the Another beauty brand, Avon, rose be more of a watch afi cionado. All the ads will world. Coach is also very good at intro- to number 12 this year from 18 in 2007. appear in fashion and lifestyle magazines this Derek Jeter and Gisele Bündchen in new ducing products that are attuned to the “Cosmetics every year for the last few fall. — Amy Wicks ads for Movado and Ebel. next generation of things.” years has been a top-ranked industry,” Commenting on the phenomenon that Williams said, adding that it’s not sur- very young consumers are buying Coach, prising considering companies spend so Williams suggested the handbag and much money on marketing. Hayden-Harnett Adds Swimwear, Shoes By Jillian Wu to compromise ranges in price style for comfort from $88 for a ayden-Harnett, the or vice versa.” ruffled pinup Russell-Newman Buys Karen Neuburger HBrooklyn-based acces- The all-leath- bottom to $148 sories brand, is launching er shoe line for a ruched By Karyn Monget with its products from a long-established footwear and swimwear includes flats, keyhole maillot. network in 20 countries. The company for spring. wedges and Lined up for ussell-Newman Inc. has acquired the creates, manufactures and distributes The fi rm’s founders and pumps detailed the upcoming Rassets and trademark of KN Karen innerwear and apparel in multiple chan- designers, Toni Hacker in colorblock- spring season is Neuburger, a women’s and men’s sleep- nels, with brands such as Cypress sleep- and Ben Harnett, are also ing, weaves and the expansion of wear and lifestyle brand with licensees in wear and robes for women, sleepwear said to be partnering with appliqué with the label’s travel the home accessories and bedding areas. and robes for women by Tommy Hilfi ger Target Stores on a limited colors anchored line, including Financial terms were not disclosed. and Laura Ashley, Baby Gro sleepwear for edition collection, as re- in neutral pal- an exclusive However, retail sales of Neuburger sleep- newborns and St. Eve sleepwear for boys ported. Also on the drawing ettes and pre- travel edition wear, robes, daywear, signature soft socks and girls. The company also has a hospi- board is a possible open- dominant colors featuring designs and licensees totaled about $250 million tality division that makes upscale robes ing of a boutique in Grand blueberry, gin- from French tex- in 2007, according to industry estimates. for hotels and spas worldwide. Central Terminal early ger and aqua. tile artist Paule This is the second acquisition for Regarding opportunities to expand next year, along with a proj- The six-style Marrot, which Denton, Tex.-based Russell-Newman the Karen Neuburger franchise, David ect with Pony Footwear. swimwear line launched in since March, when it purchased St. Eve, Martino, president and chief executive “If we had an investor, is based on the fall 2006. The a maker of women’s and children’s sleep- offi cer of Russell-Newman, said, “Karen we would be ready to ex- unexpected suc- Hayden-Harnett wear, underwear and daywear. Neuburger is well developed in sleep- pand,” said Hacker, who cess of the com- Hayden-Harnett namesake, how- “We are constantly looking for brands wear, and Cypress and St. Eve will help declined to comment on pany’s initial de- swimsuit and shoes. ever, continues that we can own,” said Jim Martino, cross-pollinate the Karen Neuburger speculation of a Target sign of a bikini to hold true to chairman of Russell-Newman. “There’s product line to be more prominent at deal. Target also declined for a 900-unit order from its New York roots with a lot of talk about licensing brands, but retail, and in additional classifi cations comment. Anthropologie last spring. the debut of a Bleecker we also want to build the equity of the such as robes and daywear.” The nine-style shoe line Hacker plans to selective- backpack and Bedford brands we own. We cold-called KN Karen Sleepwear by Karen Neuburger, will make its debut at the ly preview the new line to messenger bag. Neuburger and asked them what the situ- which was created in 1991, is distributed WSA trade show today. stores this month. “I can’t believe this has ation was, and the timing was right. They to more than 1,000 major department “The designs are defi - “The concept for our happened so quickly,” said wanted to sell and we wanted to buy. store doors. nitely Eighties infl uenced, swimsuits is to be able to Hacker, who had dreamed “One of the reasons we were interest- “Karen Neuburger also has a small hos- specifically 1980 and merchandise and deliver of launching a shoe line a ed in the Karen Neuburger brand was we pitality division and it will enhance ours 1981,” said Hacker. “It’s seamlessly with our ap- year ago. “We have really wanted to be in the better area,” he said. as well,” Martino added. “We also see an very ‘Working Girl’ meets parel for our specialty re- done so on our own terms “There are no plans to down-channel the opportunity to develop a Karen Neuburger ‘Xanadu’ meets Memphis tailers,” said Hacker. and it’s refreshing the brand.” children’s [sleepwear] business.” design. Women in New The line showcases way things are commu- Russell-Newman, which generates He added that Dustin Eber will York City don’t have cars, the company’s signature nicated — there is still a about $275 million in annual wholesale continue as president of the Karen we have shoes. I have de- in-house prints on nylon human element, the soul sales, supplies major retailers and sources Neuburger operation. cided to simply refuse and spandex fabric and and personality.” ACCESSORIES at WWD

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We’ve got rhinestones, yes we do. We’ve got rhinestones, how ‘bout you? 32 WWD, MONDAY, JULY 28, 2008 WWD.COM The new Tommy Hilfi ger children’s wear store in Las Vegas. De Beers Sees 9.7% Profi t Drop By Nina Jones mand for less valuable diamonds in the U.S. “We are obviously living in uncer- LONDON — Net profits at De Beers SA tain times, and that requires a more cau- fell 9.7 percent during the six months tious outlook,” said Penny during a con- to June to $316 million, compared with ference call. “Mass market retail jewelry earnings of $350 million in the same sales have been impacted by economic period last year. issues, particularly in the U.S. While De Beers said the profi t decline was there has been strong growth in China, largely due to an increase in the tax rate India, Russia and the Middle East, [that] this year compared with the previous has helped to mitigate, the overall retail year, and one-off charges associated with market is likely to remain challenging for its class-action settlement agreement in the mass market end of the business.” the U.S. Underlying earnings during the Diamond production at De Beers fell period, which stripped out the effect of 4.1 percent during the period to 24.2 tax and one-off items, rose 8 percent to million carats, due to factors including $350 million, from $324 million. power cuts in South Africa during the Sales rose 10 percent in the six fourth quarter, plans to cease production months to June 30 to $3.74 billion, from at some of its smaller mining companies $3.4 billion in the same period last and adverse weather conditions at its year. De Beers said the rise in sales Venetia mine in South Africa. The com- was thanks to an increase in demand pany said it plans to open three diamond for rough diamonds from its Diamond mines during the course of 2008 — The Trading Company clients, which has en- Snap Lake and Victor mines in Canada abled the company to raise the prices of later this month and the Voorspoed Hilfi ger Opens Kids’ Shop in Vegas rough diamonds. Of total sales, $3.3 bil- mine in South Africa, which will open lion came from rough diamonds, while in November. De Beers chairman Nicky By Sharon Edelson the remainder were industrial dia- Oppenheimer described these openings monds and supplies of rough diamonds as “a record for De Beers.” NEW YORK — Since relaunching its retail business in September 2000 with the first to non-site holders through the group’s “The world’s an uncertain place at the Tommy Hilfiger women’s-only store on Bleecker Street here, the designer has in- subsidiary Diamdel. moment, and to be able to produce the troduced several other retail concepts. Now comes the first children’s wear store, a De Beers said it had also seen high fi rst half we have is really very encour- 3,000-square-foot unit at 6659 Las Vegas Boulevard in Las Vegas. double-digit sales growth at De Beers aging,” said Oppenheimer. “We certainly In addition, bowing in September on Collins Avenue in Miami’s South Beach will Diamond Jewelers, the joint venture with don’t see any sign of demand for the bet- be a men’s and women’s sportswear shop with a garden in the back leading to a surf LVMH Moët Hennessy Louis Vuitton. The ter quality goods declining. The fact that store in a separate building. Hilfi ger also will open a 3,163-square- foot sportswear increase was driven by demand for high- we’re building new mines emphasizes De unit in the Aventura Mall in South Florida and a 3,868-square-foot store at Plaza Las er-end and bridal diamond jewelry and Beers’ commitment to the future.” Americas in San Juan, Puerto Rico. store openings in cities including Dallas De Beers will also launch its “We’re looking at A malls around the country,” said Gary Sheinbaum, president of and Tokyo, in the Ginza district. The com- Forevermark diamond brand in Hong Tommy Hilfi ger retail. “We’re also looking at a couple of very exciting street oppor- pany added that it aims to have around 50 Kong and China in the fourth quarter and tunities. We’re going to open fi ve to 10 stores a year. We’re not going to compromise stores open by the end of 2008. Sales at De in South Africa, Japan, India and Taiwan [on the location]. It has to be the right mall with the right co-tenancy and the right Beers Diamond Jewelers are not included in the fi rst half of 2009. “We believe that location in that mall. We also want the stores to be the right size, from 3,000 to 4,000 in the fi gures De Beers SA reports. there is immense potential behind this square feet. We’re trying to stay very disciplined in what we believe is our formula Despite the rise in sales, and what brand,” said Penny. for success.” the company described as a “robust” Natural resources conglomerate The kids’ store in Las Vegas is a test. “We know we have a great kids’ opportunity,” demand for high-end diamonds, Gareth Anglo American plc owns 45 percent of Sheinbaum said. “This is a new store design. Our kids’ business is very small. It’s Penny, managing director of De Beers, De Beers SA, while 40 percent is owned only in our SoHo store, where it accounts for 10 to 12 percent of the business.” said the fi rm is taking a cautious view by the Oppenheimer family and 15 per- The Las Vegas unit has a candy bar, pinball machine and computers where chil- of the second half in light of a dip in de- cent by the Botswana government. dren can create artwork to hang on corkboard walls in the dressing room. The space is decorated with vintage toys and posters and vintage schoolhouse lights. From the outside, the store looks like a traditional American general store. Hilfi ger plans to open two more stores in Las Vegas, one devoted to denim and the other to sportswear. “The Hilfi ger denim and sportswear concepts can go into a Moncler Aims for Sales Lift With Ski Town Unit number of A malls,” Sheinbaum said. “We think lifestyle centers can be part of our MONCLER IS EXPANDING IN CHIC SKI RESORTS. overall real estate strategy.” The high-end outerwear brand last week opened an 864-square-foot store in While the company is eager to see how the children’s store is received, Sheinbaum Chamonix, the picturesque ski town in the French Alps, and inaugurated a bigger said, “We’re going to focus more on our other concepts and build those up. We want unit of 756 square feet in Courmayeur, Italy, close to its former smaller store. to establish our sportswear and Hilfi ger denim stores.” French architect studio Gilles & Boissier developed the interiors for both stores, Both the Aventura and Plaza Las Americas units were designed using a lighter- applying the same philosophy that characterizes Moncler shops in other mountain colored prototype for resort stores. Both units feature interiors that mix tradition- resorts such as Saint Moritz and Cortina d’Ampezzo. al and midcentury design with driftwood and nickel-plated fi xtures and hardware The starting point is minimal chic interiors reminiscent of a luxe “haute mon- and vintage chandeliers hanging from the ceilings. The exteriors have lacquered tagne” lodge with dark stone fl oors, wooden ceilings, wood-paneled walls and hori- white facades compared with the black lacquer storefronts of Hilfi ger shops in zontal staves. A cozy alpine feeling is conveyed via lush fur throws tossed over tables, the Northeast. Sheinbaum said the product assortment will be fi ne-tuned to the ornate wooden chairs and stylized fi replaces. local markets. Moncler’s investment for the new stores totaled 600,000 euros, or $951,000 at cur- “We’re understanding in Puerto Rico that the customer likes dressier products, rent exchange rates. so we’ll certainly cater to that,” he said. “We have enough of an assortment to cater Sales forecasts were unavailable. Last year, Moncler focused its retail energies on and customize. All of our stores have the same DNA of the brand, but we tweak it a France and Switzerland, bit to fi t the market.” with an investment of 1.2 million euros, or The new $1.9 million, to open in Moncler store Paris, Crans-sur-Sierre, in Chamonix. Switzerland, and Megève, France. The Paris store hit its annual sales fore- cast of $4.4 million in only three months. Moncler now counts seven directly oper- ated stores. On tap for the fall is Moncler’s fi rst fl agship in Milan, followed by ribbon cuttings in Hong Kong, Aspen, Colo., and Gstaad in Switzerland. Since January, Giambattista Valli designs the top-of-the-line Moncler Gamme Rouge line, suc- ceeding Alessandra Facchinetti who went to Valentino. Moncler, which gener- Jelly beans and ates annual sales of over a chalkboard $200 million, was found- cash wrap at ed in 1952 in Grenoble, the Hilfi ger France, where the brand’s store for kids. factory is located. — Alessandra Ilari MAGICSWIM at WWD

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C’mon in, the water’s perfect. 34 WWD, MONDAY, JULY 28, 2008 WWD.COM Orla Kiely Seeks Backer for International Push By Lucie Greene bedding, will be sold through all the company’s freestanding stores, Heal’s furni- ture stores in the U.K. and will also be available for wholesale. Rowan was mum on LONDON — Orla Kiely is looking for a backer to propel international growth. details about pricing and aesthetics. This year the London-based accessories and lifestyle company will open its Designer Orla Kiely founded her brand in 1998 with Rowan, who is also her hus- first U.S. flagship in New York, along with additional stores in Hong Kong, Japan band, as a small wholesale label. The fi rst Orla Kiely store and Paris. opened in Covent Garden in 2005 and the company has A debut homewears range will bow in August. since grown to six freestanding stores with a wholesale Meanwhile, the privately owned company is also looking for base of over 1,000 stockists globally. investment for further international expansion. Bags from The Orla Kiely offering includes a 60-piece “We’re open, but we don’t want to work with the wrong Orla Kiely. ready-to-wear women’s collection and a 60-unit person,” said co-founder Dermott Rowan, adding that the accessories line, which includes leather goods backer would primarily be to bolster U.S. growth. and wax canvas pieces. In addition, the brand Rowan is bullish in his projections, forecasting a recently introduced stationery and confec- 25 percent year-on-year growth to the brand’s annual tionary gift collections. 20 million pounds, or $39 million, turnover for the Retail prices for accessories range from foreseeable future. 62 pounds, or $122, for a canvas wallet to 600 The New York fl agship will mark the company’s pounds, or $1,181, for a leather tote. Apparel fi rst step in this direction. runs from 160 pounds, or $315, for a cotton The store will most likely be in SoHo, in the re- blouse, to 300 pounds, or $591, for a coat. gion of 3,000 square feet, and will house the com- “There’s something at every price level for plete Orla Kiely offering. people to buy,” said Rowan, adding hot sell- Orla Kiely products are already sold in ers at the brand include large zip wallets the U.S. through Anthropologie, Nordstrom, and its classic print shoulder bags in Bloomingdale’s and specialty stores including wax canvas. Kitson and Fred Segal. Next up: The brand is planning a line “Our ‘Stem’ print bag is one of the top- of archive pieces to celebrate its 10-year three best-selling items in Anthropologie, anniversary in 2009. An eyewear line in we have such good brand recognition there,” collaboration with London-based com- said Rowan, who’s optimistic about Orla pany Linda Farrow is also in the cards Kiely’s growth potential in the U.S. “It’s got for next year. a real cult following.” “The product is ready, everything is The Orla Kiely homewears line, which will ready for big growth,” said Rowan. “Now include furniture, cushions, ceramics and we’re ready for the next step.”

“Picture 2” by Picture This: Classic Shots Via the Web Guy Aroch, 2006. By Sharon Edelson s creative director of an advertising agency in Austria, Andrea Preiss worked with Amany photographers whose work she coveted, but the images remained elusive — until technology intervened. Sometimes she would drop a not-so-subtle hint, as she did at Arthur Elgort’s studio when she saw a photo she liked, and said, “That’s nice, I’d love to have it.” There were instances when a photographer would give her a gift. Other times, Preiss would try to track down images by calling photographers’ agents and galleries. “It’s not very simple to buy these things when you travel and work a lot,” she said. “The kind of things I want to collect do not really exist in galleries. [The photogra- phers] may have had an exhibition and maybe have only one or two images left.” Preiss thought there had to be a better way. An e-commerce site based in Vienna, photographerslimitededitions.com, is her solution. The site features the works of top lensmen such as Elgort, Guy Aroch, Marc Baptiste, Rankin, Bruno Bisang, Roxanne Lowit, Nigel Parry, Howard Schatz, Ben Watts, Timothy White and Christian Witkin. There are no more than 25 prints of each image. Prices range from 1,000 euro, or $1,530, to 8,000 euro, or $12,240, based on the current exchange rate. “Jenny Howorth in Watermill, N.Y.” by Arthur Elgort, 1987.

Elgort, whose work has been published in Vogue, Visionaire and Vanity Fair, contributed the photo, “Lauren Hutton for Ultima Revlon” (silver gelatine print, 1975), which shows the model wearing a white fur coat and sitting on a park bench as Elgort, seated on the next bench, trains his lens on her. “Fashion photography is getting more recognized as an art,” said Preiss,P who has photos by David LaChapelle and Helmut Newton in her personalp collection. “Good Morning,” “I put all the nice photographers that I want to have in my collec- C-print, 2005. tiont together,” she said. “The photographers liked the idea immediately. TheyT said, ‘We all work with the Internet and buy from the computer. DealingD with traditional galleries is a lot of work.’” Several photographers declined to participate, not because they didn’td like the concept, but because of time constraints. “Steven Klein is doingd so much new fi lm work now,” Preiss said. “He’s too busy.” Besides fashion, Preiss is drawn to photographs of dancers, nudes anddlbittit celebrity portraits. “I’m looking for different styles of photography,” she said. “I want to show the different kinds of styles and the big spectrum of artwork you can get.” Preiss seeks to offer a range of price points. Guy Aroch’s “Picture 3” (C-Print, 2006), which owes a debt to the cheesecake portraits of the Fifties, sells for 2,504 euros, or $3,930. “Swimming Pool” (C-Print, 2005), Marc Baptiste’s photograph of a nude fl oating on her back amid swirls of blue water, is 7,512 euros, or $11,790. Lowit’s “Nan Kempner, Fran Stark and Jacqueline de Ribes, The Metropolitan Opera’s 100th anniversary in 1984” (silver gelatine print) captures the women looking like birds in full plum- age. Kemper has a stem of orchids tucked into her hair while de Ribes’ long neck is further ac- centuated by a tall updo. The price: 3,505 euros, or $5,502. There’s also Andreas H. Bitesnich’s stark, atmospheric architecture series of buildings in Paris and Egypt [silver gelatine prints, 1997], and New York [silver gelatine print, 1998], 3,505 euros, or $5,502 each. Rankin’s “Kate Moss Explosions” (black-and-white archival lambda “Photographers Before print, 1999), 3,250 euros, or $5,100, which shows the model wearing garters and stockings and the Louis Vuitton Show” nothing else. by Elgort, 2003. “My second [project] will be to have a gallery,” Preiss said. “Yesterday, I sold prints to people in Mexico and Prague. It’s so fantastic to offer something worldwide.” MAGIC MARKETPLACE

August 25, 26, 27 2008 Mon. Tues & Wed: 8:00 AM – 6:00 PM The Las Vegas Convention Center www.magiconline.com

The Business of Fashion. 36 WWD, MONDAY, JULY 28, 2008 WWD.COM Financial

Mango On-line Inc. of copyright infringement. ments fi led July 7 in federal court in Manhattan said According to court documents fi led July 3 in federal Charlotte Russe Merchandising Inc. has incorporated court in Manhattan, the Spanish retailer produced and a plaid pattern in its designs that infringes on the sold dresses and tops bearing prints almost identical copyright of Cameron Industries’ fabric known as to Diane von Furstenberg’s copyrighted Macaroon Pattern No. 1125. Stripe Design and Tahitian Maze Design through its In a separate suit fi led in Manhattan federal court international stores and its Edison, N.J.-based Web on July 15, Cameron accused Los Angeles-based Burberry Ltd. has accused Ever Mode Inc. and Amelie site. The company also alleges that Mango agreed to Forever 21 Inc., New York-based manufacturer Zhou, a principal of the New York-based business, halt the sale of the infringing garments in a June 2 e- Mango USA Inc. and New York-based Conway Stores of trademark infringement and dilution. According mail but continued to offer them as late as July 2. New Inc. of copyright infringement. (Mango USA isn’t re- to court documents fi led July 18 in federal court in York-based Diane von Furstenberg is seeking an in- lated to Mango On-line.) According to court docu- Manhattan, Ever Mode has sold counterfeit handbags, junction to stop Mango’s further sale of the garments, ments fi led on July 15 in federal court in Manhattan, jackets and hats that display the Burberry Check and a worldwide recall from commercial distribution, the the three retailers used a pattern that infringes on Burberry Knight or similar reproductions of both destruction of any garments found to be infringing and Cameron Industries’ Pattern No. 1196 plaid fabric. trademarks. Burberry is seeking an injunction against unspecifi ed damages. Mango said it had not copied In both complaints the company seeks a permanent the further sale of the goods by Ever Mode, the de- any of the designs and that the prints of its designs injunction from the further use of infringing pat- struction of all products found to be infringing, statu- have been created by providers that it trusts. However, terns, any revenue generated by products found to tory damages of as much as $1 million for each coun- Mango has stopped selling the items in the U.S. and be infringing, the destruction of the garments, court terfeit or infringed trademark and other damages. online until the litigation ends. costs and unspecifi ed damages. Mango USA declined Zhou did not return a call for comment and calls to New York-based textile converter Cameron comment. The other defendants didn’t respond to re- Ever Mode were not answered. Industries Inc. has accused four retailers of copy- quests for comment. Diane von Furstenberg Studio LP has accused right infringement in two separate suits. Court docu- — Matthew Lynch

Weekly Stocks Fast Stats 52-WEEK P/E VOLUME AMT 52-WEEK P/E VOLUME AMT HIGH LOW COMPANIES LAST CHANGE HIGH LOW COMPANIES LAST CHANGE

85.77 51.45 Abercrombie & Fitch (ANF) 11.5 21346542 55.86 -3.44 27.52 12.10 Jones Apparel (JNY) 0.0 10161497 14.96 -0.02 Expected average back-to- 29.00 14.04 Acadia (AKR) 25.4 2531687 22.05 -0.53 37.79 18.81 Jos. A. Bank (JOSB) 8.8 5372045 23.63 -0.64 school purchases per U.S. 36.08 18.29 Aeropostale (ARO) 18.0 16086059 31.42 -0.69 22.84 12.11 Kenneth Cole (KCP) 67.7 424189 14.39 -0.26 family with at least one 28.42 20.92 Alberto Culver (ACV) 20.4 5556473 24.00 -1.36 71.16 50.42 Kimberly Clark (KMB) 13.4 14806919 55.99 1.00 school-age child: $594.24, up 2.58 0.90 Alpha Pro Tech (APT) 13.1 160162 1.06 0.05 47.69 29.00 Kimco Realty (KIM) 24.9 18262704 34.69 0.45 27.29 11.87 American Eagle (AEO) 8.4 25797721 14.29 -0.15 63.97 36.81 Kohl’s (KSS) 13.2 27035113 42.68 -0.26 5.5 percent from 2007. 36.81 18.70 Ann Taylor (ANN) 15.3 14883548 23.09 -0.73 26.03 13.89 K-Swiss (KSWS) 20.7 1299369 16.42 0.19 7.25 2.47 Ashworth (ASHW) 0.0 59187 3.15 0.06 22.99 13.00 LaCrosse Footwear (BOOT) 12.9 10408 15.70 -0.27 Expected average back-to- 42.51 31.95 Avon (AVP) 28.4 11584534 36.37 0.16 14.65 9.51 Lakeland Inds (LAKE) 19.7 18857 12.50 -0.27 college purchases per person: 6.69 0.86 Bakers (BKRS) 0.0 30606 1.53 0.15 25.68 14.41 Limited Brands (LTD) 8.1 21151189 16.37 -0.01 15.85 8.81 Bebe (BEBE) 14.2 3292697 10.00 -0.05 17.88 7.33 Liquidity Services (LQDT) 28.4 950783 11.40 0.03 $599.38, down 6.6 percent 185.97 20.30 Benetton (BNGPY) 0.0 0 23.60 1.15 37.57 11.08 Liz Claiborne (LIZ) 0.0 11729656 12.86 0.11 from last year. 16.06 3.19 Big Dog (WALK) 0.0 56052 3.75 -0.23 8.72 1.80 LJ Intl. (JADE) 5.9 729319 1.94 -0.08 7.50 2.45 Birks & Mayors (BMJ) 5.8 1700 2.50 -0.10 60.70 21.25 Lululemon (LULU) 50.0 3117122 25.20 -3.45 Percentage of parents expected 43.08 26.36 BJs (BJ) 18.3 19210689 35.80 -5.28 37.60 21.22 Luxottica (LUX) 17.0 774381 25.22 0.53 to begin shopping for b-t-s at 1.36 0.10 Blue (BLUE) 0.0 45911 0.33 -0.05 93.45 51.52 Macerich (MAC) 24.5 8337441 55.69 -0.93 9.90 2.05 Bluefly (BFLY) 0.0 25214 3.15 -0.02 39.67 14.33 Macy’s Inc. (M) 10.4 32085120 18.07 -0.02 least three weeks before school 30.81 4.01 Bon-Ton (BONT) 11.2 1053652 4.89 -0.10 19.26 11.03 Maidenform (MFB) 12.7 578112 15.80 0.22 starts: 46.4, versus 45.2 23.19 11.89 Brown Shoe (BWS) 11.9 4808437 15.53 0.57 54.13 15.41 Men’s Wearhouse (MW) 8.7 5939643 18.70 -0.47 in 2007. 53.97 30.05 Buckle (BKE) 19.0 2500753 49.98 1.46 23.03 9.12 Marcus (MCS) 22.9 634133 15.66 0.55 19.04 8.00 Caché (CACH) 56.5 1135624 14.48 1.32 25.09 8.97 Mothers Work (MWRK) 0.0 49305 12.02 0.23 22.42 7.56 Capitalsource (CSE) 21.1 20432380 11.46 0.11 34.99 17.16 Movado (MOV) 9.7 720122 21.61 1.04 Expected percentage of b-t-s 23.13 11.94 Carter (CRI) 11.9 5962080 16.07 2.14 4.25 0.95 Movie Star (FOH) 0.0 78182 0.95 -0.15 shoppers who will buy online: 13.44 2.95 Casual Male (CMRG) 0.0 627215 4.17 0.12 26.15 19.28 National Retail Prop. (NNN) 9.2 5341435 21.22 0.57 24.8, versus 21.4 in 2007. 22.70 12.48 Cato (CTR) 17.6 1835111 17.84 -0.61 10.84 3.65 New York & Co. (NWY) 470.0 2529978 9.34 -0.36 37.21 18.69 CBL (CBL) 27.9 6423997 20.49 -0.32 70.60 51.50 Nike (NKE) 15.5 16822585 58.17 -0.03 10.50 6.61 CCA (CAW) 10.2 17457 7.10 0.08 3.38 0.50 Nitches (NICH) 0.0 59391 1.14 -0.06 Total b-t-s spending 4.44 0.75 Charles & Colvard (CTHR) 0.0 194312 0.86 0.08 53.47 25.67 Nordstrom (JWN) 10.3 28434300 28.94 -1.09 (kindergarten through 12th 21.85 12.05 Charlotte Russe (CHIC) 8.5 6973061 12.73 -4.16 6.66 3.01 Orange 21 (ORNG) 0.0 1600 3.70 0.39 grade) expected this year: 10.48 4.01 Charming Shoppes (CHRS) 0.0 9222748 5.10 0.18 10.35 5.68 Orchids Paper (TIS) 14.2 11927 7.95 0.46 $20.1 billion 82.17 55.68 Chattem (CHTT) 18.2 2000551 63.18 3.34 42.69 17.40 Oxford (OXM) 7.6 647211 22.10 1.74 43.24 19.69 Cherokee (CHKE) 12.3 259801 22.96 1.73 19.29 7.00 Pacific Sunwear (PSUN) 0.0 9539918 8.32 0.06 20.25 4.26 Chico’s (CHS) 19.5 24990123 5.80 0.16 5.88 2.63 Parlux Fragrances (PARL) 23.7 1111934 5.67 0.12 Total back-to-college 42.59 14.92 Children’s Place (PLCE) 0.0 4957312 37.82 -1.65 28.45 8.86 Payless Shoes (PSS) 33.4 9562137 11.78 1.38 spending expected this year: 17.48 6.60 Christopher & Banks (CBK) 17.3 1919018 8.15 0.66 32.82 12.83 Perry Ellis (PERY) 12.9 691449 23.20 1.63 $31.3 billion 38.82 25.15 Cintas (CTAS) 13.3 8009400 28.56 0.71 58.57 30.50 Phillips-Van Heusen (PVH) 11.4 4771368 35.35 -1.13 38.35 10.76 Citi Trends (CTRN) 24.0 1355955 23.08 1.93 3.80 1.10 Phoenix Footwear (PXG) 1.3 31484 1.37 0.11 SOURCE: NRF 2008 BACK-TO-SCHOOL AND BACK- 50.95 23.22 Coach (COH) 13.9 29866331 26.59 -1.44 93.90 50.55 Polo Ralph Lauren (RL) 15.5 7095899 60.13 -2.09 TO-COLLEGE CONSUMER INTENTIONS AND ACTIONS 21.84 3.40 Coldwater Creek (CWTR) 0.0 12729810 6.61 0.02 33.67 17.12 PriceSmart (PSMT) 28.5 445728 24.08 1.07 SURVEY, CONDUCTED BY BIGRESEARCH 81.98 63.75 Colgate Palmolive (CL) 22.1 12698672 69.20 0.36 15.51 5.69 Quiksilver (ZQK) 0.0 14068282 7.94 -0.80 67.81 33.06 Columbia Sprtswr (COLM) 10.4 3464422 36.63 -1.87 10.98 6.52 R.G. Barry (DFZ) 11.5 21622 7.40 -0.34 28.54 11.50 Conns (CONN) 10.7 1123859 17.05 -0.42 34.80 18.50 Ramco-Gershenson (RPT) 15.7 422218 20.32 0.84 75.23 56.09 Costco (COST) 22.2 73949732 61.76 -10.47 81.04 51.67 Regency Centers (REG) 25.1 4423534 58.22 0.76 WWD Index 75.21 4.95 Crocs (CROX) 5.5 48149505 4.95 -4.16 14.13 3.29 Retail Ventures (RVI) 1.0 1527565 4.11 0.51 12.19 6.12 Culp (CFI) 15.5 23456 6.56 -0.06 1.29 0.67 Revlon (REV) 22.2 5668483 1.00 0.26 1.68 0.11 Cygne Designs (CYDS) 0.0 151228 0.15 -0.03 15.94 3.76 Rocky Brands (RCKY) 0.0 212322 5.07 0.99 166.50 83.51 Deckers Outdoor (DECK) 23.0 3112541 118.26 4.36 40.18 21.23 Ross Stores (ROST) 18.8 14366732 37.36 -1.56 7.16 1.50 Delia’s (DLIA) 0.0 200670 1.72 -0.11 23.05 9.15 Saks (SKS) 29.7 13816331 10.50 -0.06 Composite 19.99 2.09 Delta Apparel (DLA) 0.0 12037 4.55 0.00 152.91 67.36 Sears (SHLD) 21.3 19322841 80.98 5.94 833.82 5.80 4.30 Delta Galil (DELTY) 0.0 0 4.74 0.44 24.39 10.54 Shoe Carnival (SCVL) 17.9 557474 15.00 1.49 59.27 27.74 Developers Diversified (DDR) 19.1 16052196 31.42 -1.77 3.14 0.05 Shoe Pavilion (SHOE) 0.0 729052 0.10 -0.05 33.56 7.61 Dillard’s (DDS) 58.3 10864444 10.12 0.23 109.00 74.80 Simon Properties (SPG) 46.2 15787215 90.59 0.08 19.82 9.35 Dress Barn (DBRN) 11.4 4344123 15.01 0.92 25.57 16.05 Skechers (SKX) 10.5 7645309 18.06 -3.92 36.49 10.10 DSW (DSW) 14.1 2011523 12.80 0.77 4.25 1.82 Sport-Haley (SPOR) 0.0 0 2.02 0.00 40.88 8.50 Duckwall-Alco (DUCK) 0.0 30798 10.16 -0.28 11.28 3.29 Stein Mart (SMRT) 0.0 947447 4.39 0.22 13.26 2.91 Eddie Bauer (EBHI) 0.0 1073250 5.06 0.67 4.22 2.45 Stephan (TSC) 11.1 6800 2.75 -0.27 28.05 12.81 Elizabeth Arden (RDEN) 12.0 1245543 17.05 1.65 -16.19 30.60 14.61 Steve Madden (SHOO) 16.0 1198975 22.15 -0.49 49.43 37.03 Estée Lauder (EL) 19.1 7468589 42.91 -0.50 13.60 8.13 Superior Uniform (SGC) 18.8 13790 9.05 0.10 31.92 14.62 Family Dollar (FDO) 14.9 21208600 22.74 -1.07 17.86 10.38 Syms (SYMS) 416.2 56220 17.34 1.03 11.60 1.48 Finish Line (FINL) 0.0 10797831 10.61 0.66 26.10 6.48 Talbots (TLB) 0.0 6594090 13.07 2.05 25.30 20.05 Forest City (FCY) 0.0 46660 21.59 0.07 12.64 3.82 Tandy Brands (TBAC) 0.0 6667 5.50 0.00 46.25 22.26 Fossil (FOSL) 15.1 5252192 27.10 -0.69 13.31 7.71 Freds (FRED) 48.6 2686677 12.85 0.02 7.55 2.22 Tandy Leather Factory (TLF) 12.7 5836 2.65 -0.14 Weekly % Changes 44.46 28.08 G&K (GKSR) 14.8 780910 34.56 0.34 44.43 32.32 Tanger Factory Outlet (SKT) 43.6 3423136 36.91 0.14 68.50 42.32 Target (TGT) 13.5 54428369 44.57 -2.30 (ending July 25) 30.73 10.51 Gaiam (GAIA) 36.6 1096969 14.01 2.16 22.02 14.77 Gap (GPS) 13.9 32846390 16.29 -0.31 1.38 0.40 Tarrant Apparel (TAGS) 8.1 150856 0.64 0.06 57.84 26.72 General Growth (GGP) 112.2 36773172 29.37 -0.73 61.52 41.30 Taubman (TCO) 62.3 5966913 49.50 1.82 Gainers Change 7.68 1.82 Tefron (TFR) 0.0 35795 2.07 -0.11 52.16 18.76 Genesco (GCO) 5.6 3185685 29.57 -0.38 Revlon 35.14 21.00 10.73 G-III Apparel (GIII) 16.4 538040 16.65 1.55 57.34 32.84 Tiffany & Co. (TIF) 16.5 13533626 37.24 -2.40 46.47 21.86 Gildan Activewear (GIL) 19.2 6447361 25.38 -0.49 24.55 12.83 Timberland (TBL) 19.2 2775804 15.18 -0.33 Rocky Brands 24.26 25.10 8.45 Glimcher (GRT) 6.3 2143445 9.46 0.62 36.44 25.49 TJ Maxx (TJX) 18.7 34891404 32.47 -2.07 8.43 1.50 Gottschalks (GOT) 0.0 105437 1.85 -0.12 28.90 13.89 True Religion (TRLG) 21.7 2209141 26.86 -0.44 Wilsons 19.51 57.20 29.66 Guess (GES) 15.2 6771934 32.59 -0.21 43.28 12.60 Tween Brands (TWB) 8.7 2764953 13.93 -0.25 Talbots 18.60 47.69 25.99 Gymboree (GYMB) 13.4 3187310 38.17 -1.39 73.40 23.50 Under Armour (UA) 31.8 5869421 28.08 -0.01 20.20 4.00 Hampshire (HAMP) 0.0 2500 5.50 -0.20 3.06 1.80 Unifi (UFI) 0.0 1041527 2.96 0.11 Gaiam 18.23 37.73 21.47 Hanesbrands (HBI) 16.4 6270100 26.35 0.41 50.46 34.60 Unifirst (UNF) 15.3 806717 47.08 0.23 8.69 1.36 Hartmarx (HMX) 0.0 391231 1.73 0.26 35.37 19.20 Urban Outfitters (URBN) 30.6 16077375 30.71 -1.29 24.87 14.56 Helen of Troy (HELE) 10.8 1852624 20.77 0.80 93.74 63.68 VF Corp. (VFC) 13.1 5087716 72.35 -1.17 Decliners Change 46.50 13.82 Volcom (VLCM) 14.5 5037843 18.65 -6.58 10.23 3.90 Hot Topic (HOTT) 18.9 3079610 6.31 0.07 Crocs -45.66 0.07 0.00 House of Taylor (HOTJ) 0.0 514945 0.01 0.00 59.95 42.09 Wal-Mart (WMT) 17.8 109936876 56.83 -1.09 33.36 16.85 IAC Interactive (IACI) 0.0 17484226 17.78 -0.09 51.00 36.38 Warnaco (WRC) 33.3 3501480 42.00 -0.78 Shoe Pavilion -33.38 24.48 10.26 Iconix (ICON) 10.3 6020006 11.60 0.15 45.00 26.77 Weingarten (WRI) 13.2 4808511 30.04 0.57 19.96 9.03 Inter Parfums (IPAR) 17.2 542546 14.66 0.03 34.31 23.70 Weyco (WEYS) 15.4 54900 29.01 0.07 Volcom -26.08 56.43 27.23 J. Crew (JCG) 18.8 8066437 30.06 -0.90 2.28 0.06 Wilsons (WLSN) 0.0 94880 0.10 0.02 Charlotte Russe -24.63 70.90 27.65 J.C. 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Handbag Technical Designer Immediate start at Rafe New York to work with Creative Director (Rafe) to translate concept to product. Must have advanced fashion sense and know quality handbag construction, and render excellent techical specifications. College Grad., 1+ yrs experience, expert sketching, & Adobe CS skills required. Competitive Salary & Benefits. EOE. KEY ACCOUNT EXEC $$ Open. Current exp selling Junior knit sports- Fax 646-292-4102 E-mail: [email protected] wear to Wet Seal or Forever 21 or Char- lotte Russe. Midtown hot junior co. PLANNER – Retail Analyst [email protected] 973-564-9236 Is seeking to fill the following positions: DESIGNER Excl. oppty. at this successful & growing Hot 7 to 16 Girls Sportswear Co look- NYC based apparel company. Req: an ing for an experienced designer whose aggressive retail analyst w/3+ yrs. CAD DESIGNER & MERCHANDISER strength is tops & bottoms& must be industry expr. (MACY’S expr. strongly able to make first pattern. Fax resume to pref.) Ability to analyze dept. & specialty Key Account Exec to $100k base ++. Successful candidate will report directly to the President of the Legwear 212-268-4920 email: [email protected] store sales by door, create seasonal Current experience in selling kids buy plan, monitor inventory, Excl. or mens to Federated and/or Sears. Division. Past experience in hosiery desired and experience with computer DESIGNER communication skills. Company has established accounts. CAD design is a must. Ability to multi-task, and work in a high-energy Robe/Sleepwear company seeks a E-mail resume: [email protected] [email protected] 973-564-9236 atmosphere is required. highly creative designer with a strong Fax 917-591-2521 Ph: 914-337-3660 eye for color.Responsibilities include all aspects of developing the line from concept inspiration to concept design GREAT OPPORTUNITY FOR to product development. Must be able PATTERNMAKER to direct and work with drapers, PRODUCTION ASST. New York based children’s wear manu- Showrooms & Lofts RIGHT INDIVIDUALS!! patternmakers and sewers. Photoshop Better Knitwear co. seeking organized, facturer seeks patternmaker for spe- BWAY 7TH AVE SIDE STREETS & Illustrator skills are reqd. Team play- detail oriented p.asst. Responsible for cial occasion and casual dresses. Indi- Great ’New’ Office Space Avail ers only. Please send resume/samples of overseas production, order input, and vidual should be highly skilled in ADAMS & CO. 212-679-5500 To apply, Please Email Resume To: work to: [email protected] traffic. 2 yr, experience required, email draping and construction with a mini- resume and salary requirements to: mum of five years experience. [email protected] Responsibilities include first pattern [email protected] DESIGNER through production and supervision of Seeking contemporary, creative Better the sample room. Please send cover sweater designer who has exp. with all ACCOUNTANT CONTROLLER $90-100K letter w/resume and salary history to: Costume Jewelry aspects of line development, sketching, [email protected] Garment exp req’d. 75 mil vol company. illustration, tech pack, and CADS. Must PRODUCTION COORD $70-80K Strong hands-on exp in bank recs, Merchandiser be detail-oriented,have a strong sense of Chinese/English bi-ling required. Will 100 West 33rd Street inventory, chargebacks, financial color/trend. E-mail: [email protected] travel to China. Thorough knowledge statements. Report to president. $100-150K + Bonus or call: 212-302-0444 of knits and wovens. Construction of Manhattan Mall: Showroom/Office garments. Samples. Exp with Walmart [email protected] 973-564-9236 Top global costume jewelry manufacturer SALES EXEC $$$$$ Available immediately for Sublease /distribution company headquartered standards helpful. Midtown co. [email protected] 973-564-9236 Dillards Expert. Junior Sweaters. 20,000 rsf will divide. Flexible term. in New York City seeks high-powered EDI COORDINATOR [email protected] Beautiful Lobby, Qual. tenant roster. Admin Since 1967 entrepreneur for newly created position. Wholesale Apparel distributor in Prior costume jewlery experience a Teterboro, NJ seeks experienced EDI Convenient to all transportation. W-I-N-S-T-O-N must, out of large retail outfit (as buyer coordinator with minimum 3yrs of ex- Call for details: 212-713-6933 or merchandiser), or costume jewelry perience. Must have Knowledge of Re- Production Manager $90-100K APPAREL STAFFING merchandising experience required. tailer requirements, Routing & EDI Current strong exp. in outerwear. Pri- DESIGN * SALES * MERCH Will be responsible for diversified transactions using INOVIS, QRS & vate label exp. required with compa- ADMIN * TECH * PRODUCTION product lines and product development. SPS COMMERCE. Pls send resume & nies such as Target, Penny’s, Sears etc. (212)557-5000 F: (212) 986-8437 Interface with buyers and factories salary req to: [email protected] Chinese English bilingual preferred. (globally and domestically); and work [email protected] 973-564-9236 with sourcing, purchasing and sales. SALES EXECUTIVE Act as driving force to increase business. Established Girls Jeanswear Co. is Alterations Manager Work closely with CEO and President. seeking an exp. sales pro to add to Position will lead to either Creative team. Must have relationships with Alterations Manager needed for Couture Production or Product major chains and private label exp. Bridal Store located in Staten Island. Director or Managing Director role. Assistant or Coordinator or Manager Excellent opportunity! Please email resume w/salary require- Must have experience in the Bridal Many Jobs-Excellent Salaries ments to: [email protected] Industry. Also looking for seamstress Send resume in MS Word format to: Call B. Murphy(212)643-8090; fax 643-8127 & fitters Please call Laurie 718-980-1900 [email protected] PATTERN/SAMPLES [email protected] Garment center location. Professional /Reliable Quality. Men & women all style. COSTUME JEWELRY SALESPERSON Low Cost. Small production. 212-629-4808 SALES MANAGER Production/Compliance MAXX NEW YORK is celebrating 20 APPLE BOTTOMS Accessories, Established Missy Associate Designer years of success in the designer handbag Handbags, Belts, Hosiery, Headwear, Importer/Wholesaler seeking Intimate Apparel Company seeks an Director market. As we prepare for the future, Patterns/Samples/Production Associate Designer with 3-5 yrs’ experi- Cold Weather. Experience & travel req’d. sales person for sweaters/cut & Any Style. We do Bridal/Evening $100-150K + Bonus we are expanding our team to grow our Work with one of the hottest brands in ence. We are looking for a team player portfolio of brands, categories and sew knits all moderate Gowns custom made & wholesale. who is well organized and can multi- High powered global costume jewelry more than one product category! E-mail majors, 10 years experience Call: 212-278-0608/646-441-0950 products. We are looking for motivat- resume to: [email protected] task. Must have good communication manufacturing/distribution conglomerate ed individuals with experience in required, good salary and bene- and follow-up skills. Experience in the seeks candidate with minimum 5+ handbags / accessories to fill the roles fits. E-mail resume to: junior category is preferred. Proficien- years costume jewelry experience. Will of VP of Design and Merchandising [email protected] PATTERNS, SAMPLES, cy in Illustrator and Photo Shop is a be responsible for customer compliance, and VP of Sales. The VP of D&M must PRODUCTIONS MUST! E-mail resumes to expectations and requirements. Will have the unique combination of crea- Sample Room Asst. [email protected]. EOE visit and follow up with factories to ensure tive talent and brand merchandising All lines, Any styles. Fine Fast Service. audit requirements. Must be familiar Must have experience in sleepwear. Call Sherry 212-719-0622. management skills. The Sales manager Duties include draping, flat patterning, with Proposition 65 and any other legisla- must possess a resume that demonstrates SALES / RETAIL [email protected] tion affecting the sale of jewelry in the rub off to develop first pattern, and Wholesale Mgr/Cosmetics exp $85k industry relationships, leadership, cutting and creating spec samples. We U.S. and other countries where mer- communication, retail management, Sales Mgr/Hi-end fashion $80k+ PATTERNS, SAMPLES, CAD ARTIST chandise is sold. Will troubleshoot offer a great working environment Office Mgr/CT/Biling French $40-45k Robe/Sleepwear company seeks a tal- computer and strong presentation with competitive salary and benefits. PRODUCTIONS with factories to help resolve lead and skills. If you have at least 5 years of ented Cad Artist Designer who is profi- production issues. Work as primary liai- Full Time- Starts immediately. Full service shop to the trade. cient in both Photoshop and Illustrator relevant experience email a resume EMAIL: [email protected] Fine fast work. 212-869-2699. son between organization and vendor with cover letter to: w/a great sense of color. Responsibilities network; source and develop potential FAX ATTN INGRID : 212-679-4975 will include designing allover prints in manufacturing partners; evaluate ven- [email protected] addition to scanning, cleaning up, re- VIE LUXE dors’ state of compliance and manufac- SALES EXECUTIVE coloring & creating repeats for prints. turing capabilities, as well as evaluate Merchandiser...... $70-90k Must color match, generate, and up- Intimate Apparel , Private label Luxury home fragrance company seeks open line merchandise for quality, exceptional Sales Executive. Must date digital color palettes for each sea- product range and specialty. Will liase Jennifer Glenn SRI Search 212-465-8300 son. Must be self motivated and skil- [email protected] have established contacts with high-end between designers and manufacturers retailers & specialty stores. Competitive led at handling multiple projects at the on all projects. Great opportunity for www.srisearch.com TD FREELANCE $35-40/HOUR same time. Must be a team player. salary & benefits offered. qualified candidate. Mens/Boyswear. Cut & Sew Knits. Please e-mail resume: Please email resume & samples of your [email protected] or 212-947-3400 work. [email protected] Send resume in MS Word format to: Operations/Cust Service [email protected] [email protected] Ladies Apparel Co in North Bergen, NJ seeks a detail orientated Operations / Customer service manager to coordinate CAD JEWELRY COSTUME JEWELRY shipping, allocations, logistics, charge- Tech Designer $80K Senior Costume Jewelry Designer backs. All areas relating to wholesale & shipping & inventory management. Luxury Market. Dresses. Top Company! MODELMAKER/DESIGNER [email protected] Women’s specialty catalog seeks an $100-150K + Bonus UPC’s, Price tickets, EDI , customer serv- Subscribe energetic indiv. to join our NYC Jewelry New York City’s most prestigious ice, data entry, ASW knowledge A+, Design Team. Must have a BA or AS Global costume jewelry manufacturing but will train right candidate . Degree in Product Design or related /distribution company seeks creative Send resume to: [email protected] today! field. CAD-Rhino. 3 yrs. exp. in the entrepreneurial designer, responsible Technical Designer to $100K. Curr exp jewelry/accessories industry. Bilingual for producing majority of creative Package Development Mgrs in full fashion sweaters. Exp w/Walmart (English/Spanish). Ability to support products. Must have costume jewlery or Target account req. Mdtn growing co. Global packaging company looking for [email protected] 973-564-9236 Design team with CAD drawings and design experience. Will support sales a PD Manager to develop and execute interface with R&D Modelmakers. and senior designer and liaise with set up boxes, vac trays, and or any Int’l travel opportunities. Strong sourcing and purchasing departments. specialty items and a PD Manager to Call 800.289.0273 org. & comm. skills req’d. Pls fax/ resume Will be responsible for staff of sample develop primary packaging and turnkey attn: HR to: 954-798-4515 or e-mail to: makers; liaise with CEO and COO. items. 3+ years experience required. [email protected] Strong communication skills. Tremendous Warehouse Manager for individual Please fax resume to: 212-867-4313 or High-end women’s clothing co. seeks potential, unique opportunity! email: [email protected] MENS NECKWEAR Send resume in MS Word format to: exp’d person to run our new warehouse DESIGNER-CONSULTANT subscriptions, [email protected] in Jersey City. Must know compliance, PATTERNMAKER receiving, shipping, inventory control, Wishes to expand her multiple collections Controller/CFO and be involved with an established firm Well known Dress Manufacturer look- Seeking experienced patternmaker implement/maintain solid security & or email DESIGNER $110-150K. Min 5yrs exp specializing in women’s sportswear, loss prevention. Must have proficient in better neckwear. Designer is well ing for experienced controller to han- known in industry and has excellent dle day to day accounting, forecasts, designing girls 4-16 knit & woven which includes dresses, jackets, pants PC skills, customer svc and have sportswear. Walmart or Target exp and skirts. Complete understanding of strong communication skills. E-mail reputation and connections. Will work budgeting, markdowns. Managerial seasonal or on contract. Call 917-520-6756 [email protected] skills a must. Fax/Email: 212-391-7827 helpful, not nec. Must hang w/ Children’s construction, fit, & draping. Knowledge resume with salary requirements to: [email protected] Place, Kids Headquarters, Metro 7, etc. of grading. Email or fax resumes to: [email protected] [email protected] 973-564-9236 212-768-8811 / [email protected] Dare you to touch one.

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