PHOTO BY ROBERT MITRA; HAIR BY SEAN JAMES DECUERS AND MAKEUP BY JORDY POON, BOTH FOR THE RITA HAZAN SALON; FASHION ASSISTANT: SARAH LIEBOWITZ Face Time Face EXCLUSIVE PREVIEW EXCLUSIVE Tatty boots.For DivinenecklaceandL.A.M.B. more,seepages6and7. a photo-printcottondressandcardiganfromMcQ,herownunitard, collectionwitharock’n’rolltwist.Here,Mossin It’s acontemporary McQ Alexander McQueenforTarget line,whichisdebutingforspring. vocalist ofTheDuke Spirit,isthemusebehindAlexander McQueen’s collection,butLielaMoss,thelead inspiration foratopdesigner’s daythatasingerinanundergroundbandbecomesthe It’s notevery with leanstaffs. options forindependentsalreadyoperating in theholidayseason—suchtacticsaren’t suppliers andtakesteepmarkdownsearly their clouttonegotiatebetterpricesfrom organization, buybackcompanystock,use units inhealthiermarkets,trimfatfromthe sales. Andwhilelargerchainscanleverage double-digit declinesincomparable-store their largerbrethren,whichlastmonthsaw evenmorethan the impactofdownturn must beforthelittleguy. of theeconomy, justthinkofhowbadthings Avenue because andNordstromarestruggling If thelikesofNeimanMarcus,SaksFifth By SharonEdelson To Tough Survive Times Indie Retailers Adapt theDownturn: Battling “The big people have so much more recourse bigpeoplehavesomuchmorerecourse “The Independent designerboutiquesarefeeling WWD Ready-to-Wear/Textiles Women’s Newspaper Daily •November18,2008$2.00 Wear Retailers’ •The Daily See page 4. Beijing, approach in artful Dior’s FASHION:

Small ▲ ,

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13 TUESDAY

page 2. Fashion Fund, Vogue/CFDA Wang wins Alexander ▲ FASHION:

page 2. Kishimoto, with Eley splits Cacharel ▲ NEWS:

RETAIL: page 3. strategy, holiday talks Penney J.C. ▲

2 WWD, TUESDAY, NOVEMBER 18, 2008 WWD.COM Wang Wins Fashion Fund Award By Marc Karimzadeh Galliano as the night’s keynote speaker. This year’s selection committee consisted WWDTUESDAY Ready-to-Wear/Textiles NEW YORK — Alexander Wang was chosen as the of CFDA president Diane von Furstenberg; fifth CFDA/Vogue Fashion Fund recipient. CFDA executive director Steven Kolb and as- FASHION At Monday night’s CFDA/Vogue Fashion Fund sociate director Lisa Smilor; Vogue’s Anna An Alexander McQueen collection for Target might dinner gala, Wang took home the top honors, Wintour and Sally Singer; Theory’s Andrew 6 pocketing $200,000 and a year’s worth of mentor- Rosen; Coach’s Reed Krakoff; Jeffrey Kalinsky seem dichotomous, but the designer said, “I ing. Lisa Mayock and Sophie Buhai of Vena Cava of Jeffrey New York and Nordstrom; Gap’s wasn’t born with a silver spoon in my mouth.” and Albertus Q. Swanepoel of Albertus Quartus Patrick Robinson, and Barneys New York’s GENERAL were this year’s runners-up, and will each re- Julie Gilhart. ceive $50,000 and a business mentor. Founded by the Council of Fashion Designers 1 If Neiman Marcus, Saks Fifth Avenue and Nordstrom The winners beat out fi nalists Richard Chai, of America and Vogue, the fund is seen as an are struggling due to the economy, just think of Jason Wu, Irene Neuwirth, Alejandro Ingelmo, accelerator of fashion careers. Previous win- how bad things must be for the little guy. Juan Carlos Obando, Obedient Sons & Daughters ners were Rogan in 2007, Doo-Ri Chung in 2006, 2 French brand Cacharel has ended its association and Organic. Trovata in 2005 and Proenza Schouler in 2004. with British designers Mary Eley and Wakako In addition to the fi nalists, the dinner feted Past runners-up were 3.1 Phillip Lim, Philip Kishimoto, known together as Eley Kishimoto. the Fashion Fund’s fi fth anniversary. The event Crangi Jewelry, Rodarte, Thakoon, Derek Lam, took place at Skylight Studios here, with John Thom Browne, Cloak and Habitual. 3 J.C. Penney Co. released its Christmas strategy, emphasizing new “affordable” products, greater values and shopping conveniences. Christian Dior Couture unveiling of a Dior-themed ▲ 4 Cacharel Parts Ways With Eley and Kishimoto art exhibit in Beijing created by some of the hottest stars of Chinese contemporary art. By Robert Murphy more seasons to express our vision,” he said. In a telephone interview, Eley suggested the 5 Italian clothing company Brioni is looking for a PARIS — Cacharel, the French brand known for two parties had differing views about how to adapt partner, putting a 20 to 25 percent stake up for its young sportswear, has chewed through an- the collection to these tough times in the market. sale and tapping BNP Paribas as its adviser. other designing couple. “Everyone is having a rough time at retail, The company on Monday said it had ended and I think Mr. Bousquet wanted certain com- 8 RTW: Fifty years after Diana Vreeland urged its association with British design couple Mary mercial gains, while we wanted to focus on Arnold Scaasi to add jewelry to his repertoire, Eley and Wakako Kishimoto, known together as building the brand aesthetic. We didn’t want to he’s back at it with a new collection for HSN. Eley Kishimoto. be making dramatic changes,” he said. 9 TEXTILES: Sourcing executives expect an onslaught The duo joined Cacharel in November 2007, Cacharel has had diffi cultly fi nding its way in of restrictive trade efforts under Democratic control and showed their fi rst proper runway collection recent years. Jean Bousquet, the brand’s found- of the White House and Congress. in October here, earning mixed reviews. Spring er, wants to give the brand new energy. 2009 was their fi nal collection for the house. When he hired Clements and Ribeiro, Bousquet Classifi ed Advertisements...... 15 They had been tapped to replace another was intent on building business in important mar- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS British designer couple, Suzanne Clements and kets like America and Japan. When that collabo- [email protected], USING THE INDIVIDUAL’S NAME. Inacio Ribeiro, who spent seven years trying to ration fi zzled, a decision was made to bring in Eley WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 rev up Cacharel. Kishimoto. It seemed to show Bousquet remained FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 196, NO. 106. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with The French company billed the split with devoted to growing the brand. one additional issue in January, October and December, two additional issues in March, April, May, June, August and Eley Kishimoto as “ending on a positive note.” The house has had trouble fi nding the right November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services The house said the decision stemmed from a pricing and marketing strategy for its prod- provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. “difference in creative vision.” Cacharel de- ucts in recent years, with efforts to grow in the Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage clined further comment. United States fi nding mixed success. 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 Eley told WWD there was “a confl ict over cre- Eley Kishimoto, meanwhile, will continue addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES ative vision” and differences about “where the to show their main line collection at London TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS line should be going” commercially. Fashion Week, and are continuing with a global 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 www.subnow.com/wd. Please give both new and old addresses as printed “The settlement was amicable, but we’re sorry licensing agreement in Japan for the production on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all because we felt like we had Cacharel in our of watches, jewelry, bags and kimonos. editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. blood, and it would have been great to have had For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online — With contributions from Samantha Conti, London at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, McComb Looks to Reassure Liz Employees UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY By Evan Clark others around us.” WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE A sell-off was triggered when the company’s ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. WITH SHARES OF LIZ CLAIBORNE INC. FALL- stock fell below $5, a price plane Claiborne ing to historic lows, William L. McComb, chief ex- broke on Nov. 12, two days after it reported a ecutive officer, tried to ease some frayed nerves third-quarter loss of $68.7 million on a 16 per- DAILY at the company by speaking directly to employ- cent sales decline. I always liked the idea ees, explaining the decline and reassuring them “Without question, it is diffi cult — indeed “ that a lower stock price does not add up to a li- sickening — to watch our stock fall, but I be- QUOTE of people in the Midwest quidity problem. lieve, and investors have told us, that the value “From where I sit, there is a ‘perfect storm’ of our company is greater than the current mar- wearing my clothes. The idea of this of circumstances that, combined, seem to affect ket price,” McComb said. our stock price more than others,” said McComb “What does a falling stock price mean?” he upstart from London going where in an e-mail sent to employees Friday, a copy of asked. “In and of itself, it does not change the which was obtained by WWD. amount of liquidity we have to run our business. It people haven’t heard of me, I think that The firm’s shares declined 25.8 percent does signal a lack of investor interest in our sector Friday and slid a further 1.4 percent, or 5 cents, and our company during this very risky quarter.” was interesting to me. Monday to $3.64 — the lowest closing price since In the face of these challenges, McComb also ” the company went public in 1986. That leaves the tried to buck up his workforce: “We must focus — Alexander McQueen, on his new stock down 86.3 percent from its 52-week high. on what each of us has to do every day. And, we collaboration with Target. Page 6. Among the competition, Jones Apparel Group must stay strong and fi ght through this together.” Inc. ended Monday down 71.5 percent from its Employees want to hear about the state of the CORRECTIONS high for the prior 12 months, as Phillips-Van business in a language they can understand, the Heusen Corp. was down 65.1 percent and Polo ceo told WWD Monday. Stephen I. Sadove, chairman and chief executive offi cer of Saks Ralph Lauren Corp. was off 51.1 percent. “They almost want us to blog,” McComb Inc., will deliver the keynote address at the Laboratory Institute The confl uence of events cited by McComb in- said. “They don’t just want us to be announce- of Merchandising, The College for the Business of Fashion’s 70th cluded a somewhat more bearish outlook from ment-based in how we communicate with annual commencement on May 22. The name of the school was the company than what some competitors have them; they want us to provide context when incorrect in a brief on page 13, Monday. given; downward sales trends among the fi rm’s the news is so almost unbelievably hard to pro- customers including Macy’s Inc., Nordstrom Inc. cess. People just appreciate management talk- and J.C. Penney Co. Inc.; a credit facility that ex- ing in times like this. A cone of silence is not Heidi Klum on the TODAY ON pires at the end of October 2009 and has yet to your friend. Your employees are your most im- runway at the 2008 be renewed, and technical trading restrictions portant social network and you’ve got to treat Victoria's Secret for some institutional investors. them with some intellect.” fashion show. “In the past, our stock has been held by many McComb also expressed optimism about WWD midcap funds that believe in the company and the company’s relaunch of its namesake brand .COM would like to be in it for the long haul,” McComb under the direction of Isaac Mizrahi next year. said in his letter. “However, these funds often With the markets roiled as they have been by • More photos from Victoria’s Secret fashion show have strict market capitalization minimums the credit crunch and the economic slowdown, • More photos from Dior’s fete in Beijing (which are tied to the stock price). As soon as a the company might get limited credit for the company’s stock falls below these levels, there steps it’s taking to turn around operations. • Featured images are automatic, computer generated sales of the “Investors aren’t putting money in retail right • Global breaking news stock, causing us to fall faster and harder than now,” McComb said. TIMOTHY A. CLARY/AFP/GETTYPHOTO BY IMAGES • Daily stock prices WWD, TUESDAY, NOVEMBER 18, 2008 3 WWD.COM

J.C. Penney’s “red box” department. Mulberry Closes 2 U.S. Units By Samantha Conti LONDON — British brand Mulberry this week shuttered two U.S. stores in a bid to tighten up and refocus its operations in the region. Mulberry chief operating offi cer Lisa Montague said the company has closed its units at the Pier Shops at Caesars in Atlantic City, N.J., and at the Americana Mall in Manhasset, N.Y., because they were not of strategic impor- tance in the long term. “Atlantic City was a risky strategy for us to begin with, because the brand is so young in the U.S. We expected to have a higher footfall there, but the result was not what we had hoped,” she said adding the clientele was a transient one, and therefore a diffi cult target for marketing. As for Manhasset, Montague said Mulberry is not well established enough to thrive in that particular envi- ronment. “We didn’t have the brand recognition to stop the traffi c going from one end of the mall to the other,” she said. “It’s not the place to launch a brand.” The Penney’s Stresses Value and Convenience for Holiday Atlantic City store opened in the spring of 2007, while the Manhasset store made its debut in late 2006. By David Moin Christmas. The strategy this year has grown to 800 Montague stressed Mulberry’s stores on Bleecker Street doors, from 600 last year, and Penney’s is adding as- and Madison Avenue in Manhattan and on Melrose in Los J.C. PENNEY CO. INC. RELEASED ITS CHRISTMAS sociates to help consumers learn about products and Angeles all had healthy sales and would remain open. strategy on Monday, emphasizing new “affordable” make choices. Mulberry also has about 30 wholesale accounts for its products, greater values and shopping conveniences. Holiday marketing dollars are fl at but e-mailing is accessories in the U.S., and also its men’s wear through Following last week’s disclosure of a diffi cult third being stepped up, with jcp.com seen taking a greater Barneys New York. quarter — profi ts fell 52.5 percent and same-store share of consumer dollars. While acknowledging the She would not supply sales or growth fi gures for the sales dropped 10.1 percent — Penney’s has no illu- Web site is relatively heavy on home goods consider- U.S., as Mulberry is in a blackout period before the release sions about what looms ahead, and is sharpening the ing how weak the home business is in many parts of of its interim results on December 10. offering and value message and shifting marketing the country, Hicks said, “Overall we are very bull- Montague added the company would further build its dollars without raising the budget. ish” about the Internet. Results could be fl at for the brand in the U.S. via the Internet. Mulberry launched the “It’s going to be tough. The customer will shop season yet are expected to be positive for the year U.S. arm of its Web site last month. Worldwide, mulberry. in line with the current environment,” Ken Hicks, overall, he said. com is the brand’s second-highest grossing store, after the Penney’s president and chief merchandising offi - The $19.9 billion Penney’s is also shifting more of Bond Street unit. cer, said during an interview Monday in New York the marketing budget to advertising on cable TV, local “Sales in the fi rst four weeks of the U.S. site opening at the Sofi tel Hotel, where key Christmas offerings newscasts at 10 or 11 p.m., mobile and direct mail, and suggest this is a very exciting opportunity for us — in an were displayed. shifting some dollars out of advertising on networks enormous territory,” said Montague, adding the logistics for Hicks believes customers will be spending on and catalogues. Store hours will remain the same as the new site will be handled from Mulberry’s warehouse in “practical gifts, such as slippers, underwear and last year, though there could be some selective tweak- Secaucus, N.J. She added the Bayswater bag — and its vari- sweaters, and affordable luxuries, such as leather ing of hours. He also said Penney’s runs ads in movie ous iterations — account for 40 percent of U.S. sales. coats, and a little less on fl ippant gifts and novelty.” theaters where family oriented fi lms are shown and In a further bid to boost U.S. business, the brand will stage On a similar note, Tracy Mullin, president a presentation of its fall collection at Soho House on Feb. 17 and chief executive offi cer of the National Retail during New York Fashion Week. It will follow up with a simi- Federation, observed: “Americans may be hesitant lar presentation during London Fashion Week on Feb. 23. to purchase expensive gifts this holiday season, but In other news, the brand opened its fi rst freestanding personal and practical gifts will resonate most.” The unit in the Middle East at the new Dubai Mall last week NRF released results of a holiday survey of 8,758 con- and plans to open stores in malls in Jeddah, Saudi Arabia; sumers, conducted Nov. 5 to 11 by BIGresearch, sug- Kuwait City, Kuwait; and Doha, Qatar in the spring. It also gesting the majority of U.S. consumers have not yet plans to open a store in Athens, Greece, at the same time. put a dent in their shopping list, with 72 percent com- Montague said Mulberry plans to expand its factory in pleting less than 10 percent of their shopping and just Somerset, England, to accommodate increasing produc- 2.2 percent completely fi nished. tion. Mulberry is one of the few British luxury brands that According to the NRF, traditional winter apparel continues to produce in the U.K. and personal inexpensive items like DVDs, CDs, video games and books, will be highest on gift lists, followed by new game systems, Blu-ray DVD players, other electronic items, toys, gift cards/certifi cates, person- De Grisogono Seeking a Partner al care and beauty items and jewelry. However, the NRF warned the nation’s price-conscious mentality By Robert Murphy will take a toll on gift cards, sales of which are seen falling nearly 6 percent this holiday season to $24.9 PARIS — De Grisogono, the Swiss jewelry and watch firm, is billion, from $26.3 billion last year. For the last few looking for an investor. years, gift card purchasing snowballed, but this year Fawaz Gruosi, who founded the brand 15 years ago, fewer people plan to purchase gift said he has been actively looking for an investor to bring cards this year — 53.5 percent versus in new capital so he can solve cash fl ow issues and de- 56.6 percent last year — and the over- velop his business. all per capita expenditure on gift cards “We need a partner in order to grow,” he said, adding he will slip to $147.33, against $156.24. was looking for a minority partner but that he was “open” Hicks stressed the importance to other solutions. of Penney’s private brands, follow- Gruosi, who bought back a 49 percent share in his com- ing a fl urry of introductions with- pany from Chopard two years ago, said a deal to bring an in the past two seasons, including In a tough business climate, Penney’s private investor on board just fell through due to turbulence on Fabulosity by Kimora Lee Simmons, brands, such as Decree, are trending better. fi nancial markets around the world. Decree, American Living and “The situation today is not positive for a transaction,” Flirtitudes. “Our new merchandise said Gruosi, who did not reveal the name of the abortive is selling extremely well,” he said, has a prime spot, when the lights go partner. “Maybe I’ll have to wait until things calm down.” adding there’s no slowdown in prod- out and the movie trailers begin. “The company is not small anymore, it’s ready to grow, uct development. Penney’s will roll Ken Compounding the challenges asso- but we need capital,” he continued. “We have problems out additional private brands in 2009 Hicks ciated with the nation’s economic tur- meeting demand because we don’t have the infrastructure in apparel and home categories, he moil and rising layoffs across several we need to grow.” said, without specifying. industries is the compressed holiday De Grisogono should reach 136 million Swiss francs, “The biggest difference in our merchandise [this season, since Thanksgiving is on Nov. 27, compared or $113.5 million, in sales this year, about the same as last year] is that the level of style has gone up and there with last year. However, Hicks said it’s not entirely year, according to Gruosi. is better value,” he continued. With the Worthington unfavorable. “Instead of two lull weeks between He said profi t should grow more than last year due to private brand, for example, which has been around Thanksgiving and Christmas, now there’s one.” He cost-cutting, including cutting back advertising and nixing since the Eighties, seasonless, stretch, easy-care fab- also said Penney’s will seek to get more shoppers in a glitzy party de Grisogono usually sponsored in Cannes rics and additional pants fi ts, were recently added to the stores the week before Thanksgiving and during during the fi lm festival. “It was a tough decision at the modernize the career look. post-Christmas shopping week. time,” said Gruosi. “But we’re happy we made it now.” Penney’s holiday program also focuses on a “red The regions where the middle-market Penney’s Looking for a partner isn’t keeping Gruosi from expand- box” assortment of 60 items, priced $19 to $109, in- sees the most softness are those where the housing ing. He said three de Grisogono shops were set to open cluding $90 talking robots, $30 Einstein telescopes, crisis is deepest, such as Southern California, Nevada, next year, including a second location in New York, in and products under the Sharper Image label, such as Florida, New England and Arizona, and in such cities the old Bulgari space in the Pierre Hotel. Shops also are $30 digital binoculars and $80 indoor-outdoor speak- as Detroit and Baltimore. scheduled to open in Singapore and Las Vegas. ers. The red box offering is centrally situated in 500- Penney’s also touted certain conveniences, saying Though Gruosi said business presently was tough, he to 700-square-foot areas, as well as on jcp.com and customers can create greeting cards at the stores’ por- said high-ticket items continued to sell. “It’s the steel piec- via catalogue. Red box areas were put up at the end trait studios. In addition, customers can check online es and small jewelry pieces that aren’t selling now,” said of October and will remain until a few weeks after to see if sale items are in stock at their local stores. Gruosi. “More important pieces are doing better.” 4 WWD, TUESDAY, NOVEMBER 18, 2008 WWD.COM Dior Fuses Art and Fashion in Beijing

Quentin Shih’s photos.

For more, see WWD.com. PHOTOS BY JAMES WASSERMAN PHOTOS BY

By Kathleen E. McLaughlin Jeremy Healy and fashion event producer Alexandre de Betak for Dior. BEIJING — Christian Dior Couture upped the international The exhibit includes other iconic pieces like Qiu fashion ante here on Saturday with the unveiling of a Dior- Zhijie’s luminous silver sculptures, inspired by Dior jewel- themed art exhibit created by some of the hottest stars of ry and hung from the gallery ceiling like stalactites. Zhang the Chinese contemporary art world. Dali contributed a portrait of Dior artistic director John In barely over a year, the Chinese capital has seen Fendi Galliano is his signature AK-47 pattern, while Zhang Huan and Karl Lagerfeld use the Great Wall as a catwalk, Yohji used his special incense ash for his rendering of house Yamamoto take over the previously Forbidden City for a founder Christian Dior. runway show and scores of other international branding The portraits of Galliano and Dior hang on either side events break down old barriers and push the envelope. of the show-stopping installation of the exhibit, “Giant Dior executives, looking for a new way to turn heads in No. 3,” Zhang Huan’s massive foam-and-cowhide sculp- China, knew they had to come up with something unique ture of what might be a pregnant Buddha with a smaller to create a buzz in today’s Beijing, a place ever more inun- man hanging off its back. The 15-foot-tall piece, owned by dated with high-profi le and innovative fashion events. Arnault and fl own in from New York, wasn’t made for this Sidney Toledano, president and chief executive of Dior, exhibition but hasn’t been shown in China before. said the Chinese fashion scene is demanding more creativ- Saturday’s opening at the Ullens Center of ity and more interesting presentations. With Asia on a cer- Contemporary Art drew 350 people, including scads of ce- tain path to becoming the company’s number-two market lebrities, business people and art luminaries, to Beijing’s and Greater China on track to be number one in Asia, mak- Dashanzi district. There, an old industrial factory com- ing an impression here is more important than ever. plex since converted into a series of galleries and art work “We had the idea to do something in China that was spaces, has grown into the beating heart of China’s vibrant more than just a fashion show,” said Toledano. “This coun- contemporary art scene. try is asking for more.” But as the country’s modern art movement has caught And more is what Dior gave China this weekend with fi re with international collectors and prices have soared what seemed to be the must-attend event of the fall. In a on the world market, so too have complaints the work has dramatic fusion of art and fashion, corporate branding and become too commercial. The Dior project could serve to artistic creativity, the French fashion house unveiled the exacerbate that criticism, given that top artists like Zhang creations of 21 Chinese contemporary artists commissioned Dali, Zhang Xiaogang and Li Songsong were commissioned to create pieces inspired by Dior. The idea — which was to create luxury brand-inspired pieces. hatched by Toledano and his boss, LVMH Moët Hennessy Of course, not all the pieces in the exhibit pay blind Louis Vuitton chief and Chinese modern art buff Bernard homage to the greatness of fashion. In the catalogue of Arnault, some two years ago — has been in the creation the exhibition, Li Songsong describes his take on the stage for more than a year. Lady Dior bag — a 23-foot-tall handbag made of fl uores- The exhibit is designed as an intertwined journey cent light tubes — as a meditation on “greatness, lumi- through Dior fashion history and Chinese contemporary nosity, wastefulness.” art, combining the presentation of nearly 90 Dior couture Galliano, who spent three weeks traveling across pieces dating back to 1947 with the designs of some of the China in 2002 for inspiration, dismissed criticism of nation’s hottest artists. The journey begins with 20 photo- Chinese art as overly commercial and said he fi nds it im- graphs from Quentin Shih, who traveled to Paris to shoot pressive. The designer, who was on hand for the opening, top models in Dior fashions. said he continues to be surprised by China and its mod- Shih presents the models in glass boxes surrounded by ernization. Galliano said he is “inspired by many things” watching, slightly washed-out images of Chinese people here and his favorite aspect of China is how old and new in matching, dated dress against bleak landscapes. The cultures, traditions and art have been blended in cities contrasts presented in his photos, Shih said, illustrate and in the countryside. the gap between most Chinese people and high fashion, “All of it works together in a very harmonious way,” he luxury brands. said. “There’s a great energy here.” The journey continues into a Chinese garden-styled Following the exhibition opening, international stars exhibition fl oor with connecting rooms housing most of including Charlize Theron, Eva Green, Marion Cotillard, the pieces. The 32,000-square-foot presentation, mostly Michelle Yeoh and Maggie Cheung joined Galliano, Dior connected with bamboo walkways and backed by at-times Clockwise from top: John Galliano and Charlize Theron; executives and Chinese artists, along with others from the disorienting mirrors and lighting, is a multisensory experi- A Dior dress hanging from the ceiling; “Giant No. 3” by art and fashion worlds, for a French dinner in one of the ence with a musical score created and mixed by British DJ Zhang Huan; Hélène and Bernard Arnault. converted factory spaces adjacent to the art center. WWD, TUESDAY, NOVEMBER 18, 2008 5 WWD.COM FASHION SCOOPS

GAULTIER IN CHILDREN’S WEAR DEAL: Jean Paul Gaultier, the enfant terrible of French fashion, has signed a license agreement for children’s wear with France’s Zannier Group. The fi rst collection, consisting of about 120 pieces for girls and boys ages two to 14, is to be unveiled to the trade in January for fall 2009. The name of the collection, and other details, have yet to be disclosed. Zannier, founded in 1962, produces and distributes kids’ wear under about 20 brands, including Little Marc Jacobs, Levi’s, Kenzo and Oxbow. Meanwhile, Gaultier is among fashion folk winging their way to Dubai for Thursday’s blockbuster opening party for Atlantis, The Palm. Gaultier will be there to support his friend Kylie Minogue, who will be performing for some 2,000 VIP guests, with organizers promising a fi reworks display that will light up 27 miles of palm- shaped shoreline. A piano serves as a makeshift cooler. PRADA GOES VROOM: After Armani, Hermès and Dolce & Gabbana, another Italian luxury brand is sliding into the driver’s seat — Prada. According to Hyundai Motor Company, Prada’s design team will work closely, over Kate Spade a four-month period, with the car company’s engineers and own designers to create three special editions of the Genesis Sedan. “We’ve made a name for ourselves as a quality automaker, and are now focusing on raising our brand image,” said James Choi, Hyundai Motor’s president of international sales. The fi rst Prada Hyundai Genesis Sedan will be unveiled at the 2009 Seoul Motor Show and then be displayed at Hyundai’s headquarters in Seoul, while the other two will be auctioned at the Prada Transformer, a temporary building in Seoul that will accommodate a range of cultural, artistic and fashion events scheduled to take place from March to July. The earnings will be donated to a charity under the joint Hyundai-Prada Transformer name, but further details were unavailable.

SMOKING ROOM: A giant retrospective exhibition dedicated to the late couturier Yves Saint Laurent is being readied in Paris. Pierre Bergé said the exhibit, likely to include some 300 pieces, should be held at the Petit Palais in 2010. The Foundation Pierre Bergé-Yves Saint Laurent has some 5,000 couture garments plus some 15,000 accessories, sketches and assorted objects spanning Saint Laurent’s 40-year career. Bergé, meanwhile, is guest of honor at next month’s La Grande Braderie de la Mode (“The Big Fashion Stock Sale” in English) being held in homage to Saint Laurent. The biannual event offers designer wares at discount prices to raise funds for an AIDS charity. Amanda Brooks in Thakoon with PUPS AND PROENZA: Barneys New York last week threw a sequel to the party hosted earlier this month to fete Cynthia Rowley in Proenza Schouler’s foray into handbags at the department store’s Beverly Hills outpost Thursday. But instead her own design. of an Italian dinner feast, a light lunch of tuna and vegetables was on the menu. And dogs replaced the gaggle of cool chicks. Lisa Eisner, rushing in after entrées were served with pooch Beatrice in tow, explained, “Sorry I was late, I was at the vet.” Lazaro Hernandez didn’t mind. While petting Beatrice, he gushed, “You don’t know how obsessed I am with your dog.” Jack McCollough passed around his phone for those at his table, including Cameron Silver, Shiva Rose and Rosetta Getty, to take a look at a picture of his pup, Buster, sporting sunglasses. “He’s so sweet,” mewed the proud owner. With Proenza Schouler’s aggressive push into accessory categories, Pool Party perhaps dog collars could be up next. ON FRIDAY, CYNTHIA ROWLEY SKIPPED OUT OF HER CANDY GIRL: Candy Pratts Price certainly knows how to fi ll a room. showroom early to run home and host a dinner in Seemingly every designer who was in New York showed up to honor of Italian footballer-cum-artist Marco Perego. congratulate Style.com’s executive fashion editor at Bergdorf Marilyn Minter, Amanda and Christopher Brooks and Goodman on Wednesday night for her new book, “American Fashion Kate and Andy Spade wandered over after viewing Accessories.” Francisco Costa, Zac Posen, Philip Lim, Doo-Ri Chung, Perego’s show, “The Only Good Rock Star Is a Dead Brian Reyes, Kenneth Cole, Tory Burch, Diane von Furstenberg and Rock Star,” at Bill Powers’ Half Gallery to the spread that Reed Krakoff — who wrote the book’s foreword — were only some of Rowley had set up: mini cheeseburgers and mini milk shakes at the names there to fete Pratts Price. her West Village home. There, the masterpiece that captured guests’ attention was the LOOSE LIPS: Outed former CIA covert operations offi cer Valerie full-length swimming pool in her backyard. Plame is at work on a book but was typically tight-lipped about “Hope you brought your swimsuits,” the designer said. the specifi cs. After speaking at Thursday’s Women’s Leadership “This is my fi rst time actually seeing it,” said a wide-eyed Kate Exchange in New York, she said, “I think I have had a few good Spade, who had only heard of the legendary pool via her three- stories in my life.” The tome isn’t due out until next year, but year-old daughter. “Bea has swam here on playdates.” Plame’s name is already back on the airwaves thanks to the And while no guests actually took the plunge, many stayed past Decemberists, who recently named a song for her. “Have you 11, smoking cigarettes on the water’s edge. listened to it? It’s hysterical,” she said, before running through the PATRICKMCMULLAN.COM NEIL RASMUS/ PHOTO BY Sheraton Hotel & Towers’ lobby to retrieve a copy someone had Candy Pratts Price and Zac Posen at Bergdorf Goodman. Andy Spade and given her. Christopher Brooks Brioni Looking to Sell Minority Stake By Luisa Zargani After recent store openings in New Delhi; Kuala Lumpur, Malaysia; Baku, Azerbaijan; MILAN — Italian luxury clothing company Brioni Cannes, France; Almaty, Kazakhstan; Beijing; is looking for a partner. Macao, China; and Jakarta, Indonesia, which The fi rm is putting a 20 to 25 percent stake up have raised the number of boutiques around the for sale and has tapped BNP Paribas as its advis- world to 58, the company plans to open a third er, said Antonella De Simone, Brioni’s co-chief boutique in Dubai by yearend. Stores in Zagabria; executive offi cer. “This is a family company. We Dubrovnik, Croatia; Istanbul and Beirut, need to think about the future and ways to de- Lebanon, are planned for the fi rst half of 2009 velop the brand,” she said. and in Lugano, Switzerland, and St. Petersburg, Marco The controlling shareholders of Brioni are the Russia, in fall 2009. That said, Perrone keeps an Perego descendants of the company’s founders: Nazareno eye on developed markets, too, and is looking at Fonticoli, the master tailor, and Gaetano Savini, opportunities in New York and Houston and has the original fashion coordinator. De Simone is secured a space in Atlanta. a granddaughter of Fonticoli and also oversees Umberto Angeloni, who married Gabriella De marketing and communications. Andrea Perrone, Simone, Antonella’s sister, became ceo of Brioni in the grandson of Savini, took over the reins of the 1990 and spearheaded the company’s expansion, family run group at the end of 2006 and is co-chief turning it into a luxury lifestyle brand. In disaccord executive, in charge of business strategies. A third over growth strategies, the Brioni heirs bought out co-chief executive is Antonio Bianchini. Angeloni and his wife at the end of 2006. “These complicated family relationships Men’s wear accounts for 90 percent of sales, could be a deterrent for an investor that is while the women’s business has been bumpy. only offered a minority stake,” said an indus- After a brief stint with current Salvatore try source. Ferragamo designer Cristina Ortiz as its women’s On the other hand, the company’s produc- creative director two years ago, which received tion facilities, based in Penne, in Italy’s cen- lukewarm reviews, women’s is now designed by tral Abruzzo region, are a lure for potential an in-house team. bidders. Also, under Perrone’s management, The company reported a 26.1 percent spike in Brioni, known for its tailored, handmade suits, operating profi ts in 2007, following a wave of re- has been attracting a new, more casual customer tail expansion. Earnings before interest and taxes with more sportswear pieces. At the same time, reached 31.4 million euros, or $48.62 million at av- By the pool. Perrone has been expanding Brioni in Asia and erage exchange, while sales gained 7.1 percent to

PHOTOS BY STEVE EICHNER PHOTOS BY emerging markets. 206.5 million euros, or $319.74 million. 6 WWD, TUESDAY, NOVEMBER 18, 2008

Liela Moss in a cotton mesh dress and rayon tank from McQ Alexander McQueen for Target and her own unitard. Tatty Divine necklace; Christian Louboutin shoes. SARAH LIEBOWITZ SARAH

Moss in a silk-screen cotton jersey T-shirt over cotton and spandex denim pants by McQ Alexander McQueen for Target. PHOTOS BY ROBERT MITRA; HAIR BY SEAN JAMES DECUERS AND MAKEUP BY JORDY POON, BOTH FOR THE RITA HAZAN SALON; FASHION ASSISTANT: ASSISTANT: FASHION HAZAN SALON; POON, BOTH FOR THE RITA JORDY SEAN JAMES DECUERS AND MAKEUP BY HAIR BY MITRA; ROBERT PHOTOS BY McQueen Targets Middle America

By Sharon Edelson bringing a series of established designers to the masses “We’d always been approached by people like H&M at low prices. Each collection will be in about 250 stores and other high street [retailers] in England to do things,” FOR SOMEONE WHO PROTECTS HIS NAME AND for a limited time. The entire line will also be available McQueen said in a telephone interview. “I’m not very image as fiercely as Alexander McQueen, designing a at target.com. fond of following the norm. I didn’t want to follow Stella collection for a mass retailer might seem like a compro- Designer Collaborations is a separate program from [McCartney] at H&M or Karl Lagerfeld at H&M. I didn’t mise, a declaration of “If you can’t beat ’em, join ’em.” Target’s Go International, which is sold in nearly all the see the point of it. I like to infi ltrate an area that’s not But McQueen stresses the collection he’s designing for chain’s stores and focuses on young or emerging design- really aware of me, as such.” Target is entirely his own, no holds barred. ers. Names the retailer has featured in the past include When Ed Filipowski, the publicist and events produc- “I can’t work with any kind of restraints,” said the Luella Bartley, Proenza Schouler, Behnaz Sarafpour, er, suggested to McQueen that he work with Target, the designer. “You can’t give me any boundaries.” Rogan and Richard Chai. Industry sources have esti- designer said he was initially ambivalent. “I’ve never Nor does McQueen see any irony in the fact that his mated that Go International does more than $100 mil- understood Target,” he said. But the idea of spreading gowns cost thousands of dollars while his clothing for lion in annual sales. his name appealed to the designer. “Apart from the East Target, which operates 1,658 stores in 48 states, will be As the first participant in Target’s Designer and West Coasts, my company doesn’t have any visibility priced under $129.99. That’s because McQueen knows Collaborations, McQueen is eager to expose a new in the U.S.,” he said. “I always liked the idea of people what it’s like when money is tight. “I was brought up on customer to his richly nuanced and atmospheric aes- in the Midwest wearing my clothes. The idea of this up- this,” said McQueen, the son of a London taxi driver. “I thetic. The line has its roots in McQueen’s diffusion start from London going where people haven’t heard of wasn’t born with a silver spoon in my mouth.” collection, McQ, which made its debut in January 2006 me, I think that was interesting to me. I think it’s quite McQueen’s collection for Target’s new Designer and ranges in price from $235 for a lace panel dress to adventurous of Target.” Collaborations initiative will launch in March. While $860 for a wool admiral’s coat. “The focus of this col- Participating designers in the Target program will the collection might appear to mirror the moves by lection will be younger and more renegade, but always draw inspiration from a muse, creative element or col- H&M to link with the likes of Karl Lagerfeld, Stella signature McQueen,” the designer said at the launch laborative partner. McQueen chose as his muse Leila McCartney and, last week, Comme des Garçons, the of McQ. His new venture is called McQ Alexander Moss, the lead singer of The Duke Spirit, a British Target line is actually an ongoing program aimed at McQueen for Target. band known for mixing noise rock and grunge in the WWD, TUESDAY, NOVEMBER 18, 2008 7 WWD.COM late Eighties and Nineties (see sidebar). Moss’ style Collaborations program will help differentiate us gave the clothes their rock ’n’ roll–punk vibe and and give us a competitive edge.” hip Brit accents. While Go International targets 18- to 24-year- “I was looking for someone with the uttermost old women, McQ Alexander McQueen for Target Style Spirit feeling of McQ,” said McQueen. “We use icons in is positioned to an 18- to 34-year-old consumer. British music, and she stood out. She’s a great-look- “We’ll fi nd that both younger and older shoppers ing girl and has a personal style. It fell into the idea will dip into the collection,” the spokesman said. of the New York underground music scene. It was “One of the goals of Designer Collaborations and more the atmosphere she portrays.” the heavy marketing push we have is to attract The collection has a muted color palette of black, shoppers to our stores, including consumers who white, gray and tan with accents of cobalt blue and don’t shop our stores on a regular basis. We want bright pink. Studs and mesh give items an edge. to increase frequency and encourage fi rst-time There are studded jeans, shorts and denim jackets shoppers to Target.” with asymmetrical closures, short tuxedo jackets and Target is not McQueen’s fi rst collaboration — he matching shorts, dresses in a blue and white paint- launched the Alexander McQueen Puma range and erly fabric, a one-shoulder dress in a gray-and-black Samsonite Black Label Alexander McQueen — but zigzag pattern with a thick it is his most populist black belt, a T-shirt with effort. “I cover specif- the image of Moss; other ic areas of life,” the members of The Duke I like to infi ltrate an area designer said. “Puma Spirit are immortalized on “ has that Generation a sleeveless jersey T-shirt. that’s not really aware of me. X aspect with fash- “The manufacturing is ion and sneakers and well fi nished and second to — Alexander McQueen” Samsonite was more none in that price point,” of an art-based proj- McQueen said of the col- ect. Sometimes it’s lection. “It’s not expensive at all, but you get the ex- the monetary thing we’re doing, but this is more ecution of a well-designed collection. Because of the about getting an idea of what I’m about across in use of materials and the feeling, [Target] knew where the [U.S.],” he said. Moss arrives on set. the collection would go.” McQueen doubted the Target line will bring more Jumper by Unhee. The designer’s favorite pieces in the line in- consumers to his core collection. “There is no way clude “the pink and black pieces and the little prom the main line could go to Middle America,” he said. dresses.” “I’m not getting any [benefi t from the Target asso- Though she’s been making music with her band The Duke Spirit A goal of McQ Alexander McQueen for Target is ciation] for the main line. It’s taken me 15 years to for nearly fi ve years, and has put out two albums, including 2008’s to attract a younger crowd to the designer’s collec- get the concept of Alexander McQueen over there.” “Neptune” (Shangri-La Music), Liela Moss has remained under tion. “It’s more about the music scene and fashion On the other hand, the Target partnership “will the mainstream fashion and music radar. The London native does, scene in the East End area, where I live,” said the open doors for McQ in other stores. This is a great however, have a big fan in Alexander McQueen — although the two designer, adding the point of the line is not to edu- taste of McQ in areas where it doesn’t exist. There have never met — and the designer is about to take his muse to cate people about fashion, but rather, “it’s a feeling could be some amazing things that come from this. the masses with his Target Designer Collaboration, which features, about the time we’re living in. If you start to give the We could change the whole concept of where we among other pieces, a T-shirt emblazoned with the singer’s face. Two whole of America that sense of where I’m from, the distribute.” days before the offi cial debut of the collection, WWD sat down with underground music scene, it’s not so much about a It’s taken McQueen a long time to reach the mass Moss to discuss the line and her personal style. logo, it’s more about a feeling.” market and the designer doesn’t expect to do it McQueen’s Target collection was put in place again any time soon. “I have to fi nd something in WWD: How did you and Alexander McQueen fi rst connect? before the recession began, but the retailer is con- it to make me want to do it,” he said of the hook- Liela Moss: Well, [the McQ team] contacted us. [McQ stylist] Sherry fi dent of the strategy (for more on Target’s latest fi - ups. “Target is just one season. I don’t like to repeat Lamden had seen us play a few times and was a fan of our work. I nancial results, see related story). “We remain con- myself. It’s a one-off and that makes it an eclectic guess time and time again, over the last year or so, they’d brought fi dent in our long-term strategy built on the premise collection. It’s great as pieces that will never exist us up on mood boards, or, you know, used pictures of my hair fl ailing of ‘Expect More, Pay Less,’” said a Target spokes- again, and for me it’s a good marketing strategy. If I around at a gig. It just felt like it was recurring — that they would man. “Part of that is differentiation. Our Designer do it all the time, it dilutes the concept.” always come up with images of our band. I think they fi nally just decided when this thing with Target was proposed that it would be a good time to make something work.

WWD: How does it feel to be considered a muse for someone like McQueen? Retailer Hit by Economy L.M.: It’s sort of preposterous and delightful at the same time. I feel like I’d be a bit of an a--hole if I was really lapping it up too much, but By Evan Clark est and taxes rose 7.9 percent to $772 million on obviously it helps you feel more justifi ed about what you’re doing, your a 1.7 percent increase in sales to $14.59 billion. performances. It’s justifi ed all of that hard work — like people have TARGET CORP.’S THIRD-QUARTER PROFITS FELL Comparable-stores sales fell 3.3 percent. noticed your movement and the visceral quality of what you do — so, for by 23.8 percent, but the company said it is still pick- Total sales of food, health and beauty products in- someone to actually approach you and talk about design, it’s very cool. ing up market share in apparel despite declining creased about 10 percent for the quarter, while sales sales in the category. of apparel and home products fell by a percentage WWD: What’s the difference between what you wear on normal days Bowing to the realities of the weakest consumer in the low- to midsingle-digit range, added Doug and what you wear onstage? market in a generation, the discounter cut its capital Scovanner, executive vice president and chief fi nan- L.M.: I think [my outfi t today] is an example of what I would wear expenditure plans next year by $1 billion, slowing cial offi cer, on the call. onstage, but sometimes I just wear it out to dinner. For performing, I store expansion, and hit the pause button on its share “Clearly, as bad as that sounds, that is a pace that think in terms of accentuation of shapes or things that I know would buyback program. The Minneapolis-based fi rm’s cred- is considerably better than the U.S. market, as we see work really well with arm and hip movements. In terms of day-to- it card division turned in signifi cantly lower profi ts, estimates for the U.S. market,” Scovanner said. “And day wear, I really do enjoy a tailored, sharp silhouette; like a great due in part to higher expenses for bad debt as card- so, we continue to gain share in those categories.” tailored blazer. I like to pick really simple pieces that, when you wear holders struggle to meet their fi nancial obligations. Segment profi tability at the fi rm’s credit card divi- them with jeans and jewelry, they just pop. Still, Gregg Steinhafel, president and chief execu- sion fell 83 percent to $35 million, due to higher bad- tive offi cer, said Target remains positioned to take debt expense, decreased interest rates and the com- WWD: Are you ready to reach a much broader audience and see girls advantage of the slowdown and come out stronger. pany’s sale of almost half the business to J.P. Morgan wearing T-shirts with your face on it? “As the environment continues to deteriorate and Chase & Co. in June. L.M.: God no! I think one egomaniac part of me totally wants it, not for consumer spending, especially in the discretionary To preserve cash, Target reduced planned capital the self-gratifi cation, but because fi nally, after touring for four and a category, continues to contract, we are adjusting tac- expenditures next year to about $3 billion instead of half years, I’m just more excited that they will be led to our music. tics to ensure that Target remains the price leader $4 billion. A substantial portion of the change comes in the market and aggressively pursues market share from reduced spending for stores that would have WWD: What was the extent of your involvement in the design process? gain opportunities,” Steinhafel said on a conference opened in 2010 and beyond. L.M.: Not a huge amount, but I was invited to the studio where they call with Wall Street analysts. “We see this as a positive step while awaiting a were pinning up all of their ideas and they were showing me fabrics “With a strong emphasis on delivering exceptional bottom in the commercial real estate market, con- and sketches and things like that. In a way, they’ve looked at me and value, we believe that Target, Wal-Mart [Stores Inc.] serving cash and enhancing returns on capital in an what I’ve worn and then put that into a casual, lower-priced range [for and Costco [Wholesale Corp.] will be the big winners uncertain environment,” Todd Slater, equity analyst Target]. I remember three visits, and I was wearing something different this holiday season,” Steinhafel said. “Some of our at Lazard Capital Markets, said in a research note. each time. And each time, they would fi nd a shape in the jacket I other retail competitors may not emerge intact from Even so, the company might snatch up a chunk was wearing or the fact that there was a tie or clip on something I was the current economic turmoil. While we do not cel- of real estate that becomes available, perhaps from wearing and show me how they had incorporated that into their designs. ebrate the misfortune of others in our industry, we store closures. “Let me be crystal clear,” Scovanner believe that our smaller competitive sets would be to told analysts. “If a block of stores came along better WWD: Have you spoken to McQueen recently? Has he given you any our benefi t when the economy improves.” priced that allowed us to enjoy robust returns, we advice about how to handle the fashion press? Profi ts for the quarter ended Nov. 1 fell to $369 would pursue that block of stores.” L.M.: Not really, no. The McQ team did pop ’round last night, and million, or 49 cents a diluted share, from $483 mil- Scovanner also said the company was continu- we had a chat. I really think we’re on the same wavelength. They’re lion, or 56 cents, a year ago. Total revenues, includ- ing to evaluate the proposal from activist investor so busy and we’ve been on tour so much, we really haven’t had the ing the retail and credit card divisions, inched up 1.9 William Ackman to spin off the land under Target’s chance to sit around a table and go, “How will this work?” In fact, percent to $15.11 billion from $14.84 billion. stores into what would become the largest real estate there was just a memo sent to me with ideas to talk about, you The company’s shares fell $1.35, or 4.1 percent, in investment trust in the country. know, in terms of press, but I didn’t read it. Partly because I was in New York Stock Exchange trading Monday. In the fi rst nine months of the year, Target’s earn- a hurry but also I just thought, ‘You know what, I’m not really going Target’s largest and fi ercest competitor, Wal-Mart, ings have fallen 11.9 percent to $1.61 billion, or $2.06 to worry about having pointers.’ I think sometimes my naïveté or my last week bucked the recent retail trend, pushing a diluted share, from $1.82 billion, or $2.11, a year ignorance about the fashion world might come in handy because you sales and earnings up for the quarter. earlier. Revenues rose 4.4 percent to $45.39 billion just get an innocent, honest reply. And I’ll just toughen up gradually. At Target’s 1,684 stores, earnings before inter- from $43.5 billion. — Nick Axelrod 8 WWD, TUESDAY, NOVEMBER 18, 2008 WWD.COM Ready-to-Wear Report Scaasi Hits the Airwaves With Jewelry By Rosemary Feitelberg even though his last one was eight years ago. “I’m going to tell them what I told you,” he said. “For $35, you can buy Pieces from Scaasi’s FIFTY YEARS AFTER DIANA VREELAND URGED ARNOLD the pearls and for $25 you can buy the [matching] earrings. jewelry line. Scaasi to add jewelry to his repertoire, the designer is back Women will buy something to clean themselves up and to at it with a new collection for HSN. wear with that old dress to make it look new.” During an interview last week in his art-laden Beekman All of the baubles were inspired by the more than 100 de- Place apartment in Manhattan, Scaasi disappeared momen- signs he produced from 1958 to 1963 — the last time he made tarily to dig up a photocopy of the telegram the legendary ed- jewelry. After Vreeland encouraged him to expand upon a itor sent decades back praising his jewelry. This time around compact butterfl y-inspired collection of jewelry, he started HSN came knocking after learning that Scaasi had done jew- working with Jacques Jewelry in 1958. The designer had a elry, the designer said. change of heart about the endeavor after reviewing his year- And no one is more surprised than Scaasi. “Suddenly, at end sales with his accountant in 1963. When the numbers guy my age, I have a new job? Hello!” he said. ran through sales for his ready-to-wear, couture, children’s While he continues to design made-to-order pieces for se- clothing and furs, but neglected to mention the jewelry busi- lect clients and routinely fl ies back from Palm Beach, Fla., ness, Scaasi asked, “What about the jewelry?” He was dis- where he winters, for fi ttings, Scaasi has no intention to go mayed to learn that category only broke even. The fact that he whole hog back into fashion: “I love working, but I don’t want was getting loads of press for those designs and was not losing to work as intensely as I worked before. I do know that I don’t money made it viable to the accountant, but want to do that anymore, thank you. Scaasi didn’t share that view. “You know how everyone keeps saying women will be shop- “That’s ridiculous. Here I am spend- ping in their closets? Well, this gives them something to wear ing every Saturday at the jewelers’ with that old dress,” he said, holding up a $95 crystal-encrust- putting stones in plastertine, and ed necklace and noting how it could be worn with a cocktail I wasn’t making any money from Arnold Scaasi dress, evening gown or jeans and a T-shirt. “The whole idea of it,” Scaasi said, adding he bowed with his new this is it’s amusing. You should have fun with it.” out of that business in late 1963 jewelry for HSN. Never one to mince words, Scaasi will no doubt have some and tipped off his friend Kenneth fun when he appears on HSN at 1 p.m. and 11 p.m. on Dec. Jay Lane to the availability of the 5 for a pre-holiday blast. On-air pitches are also planned for 125-person factory. before Valentine’s Day, as well as ones in April, and May or But next month’s debut was too June. About 20 pieces ranging from $18 to $95 will be fea- inviting to pass up, given HSN’s tured on each program. reach. Holding a bracelet with over- Having once sold a collection of fi tted $200 dresses on size pearls and crystals, he said, “It’s

QVC, the designer is not fl ummoxed about his televised spiel exactly what everyone is showing today.” THOMAS IANNACCONE PHOTOS BY Mizrahi at Ultimo: Virtual + Reality Abi Ferrin Raises Profi le By Rusty Williamson By Lisa Lockwood Albrecht said she plans to do a DALLAS DESIGNER ABI FERRIN IS AIMING FOR NATIONAL trunk show with designer Gustavo expansion after showing her spring-summer ready-to-wear collec- ONLINE TRUNK SHOWS MAY BE Cadile and will begin talking to de- tion during New York Fashion Week. the province of national retailers such signers about the prospect of doing The 50-piece collection included camisoles, tunics, halter as Saks Fifth Avenue and e-tailers simultaneous in-store and online tops, cowl-neck dresses and strapless long tops that can be fash- such as Net-a-porter, but local bou- trunk shows. ioned into a short dress. Many of the styles were cut from silk tiques are getting in on the action. Denise Incandela, president charmeuse, silk chiffon, rayon, Spandex and Modal jersey, with a Last week Ultimo, the Chicago- of Saks Direct, said, “We’ve been palette of mostly jewel tones such as fuchsia, red, green and blue, based high-end specialty store host- doing online trunk shows for years. with prints including Sixties’ optic and Asian abstracts. Wholesale ed its fi rst online trunk show on its We love them and they absolutely prices for spring range from $45 for a top to $120 for a dress. new Web site in conjunction with are profi table. It’s become a very Ferrin launched her company in 2006 with the help of loans an in-store trunk show for Isaac important part of our business.” from three private backers. Mizrahi. The retailer offered pieces She said most of the online trunk In addition to Ferrin’s retail accounts, her line is also sold at from Mizrahi’s resort/spring collec- shows are for contemporary and her Dallas store, the Revolving Door. tion at the boutique from Thursday ready-to-wear, such as Diane von Wholesale volume in 2008 for the Abi Ferrin line is projected to Saturday and posted them online Furstenberg, Vince and Theory, as to be $750,000. Retail accounts include Stanley Korshak and Rich at ultimo.com, where they will be well as a few designers. This sum- Hippie in Dallas; The Finerie, Seattle; Merge Boutique, Plano, available for several weeks. mer, Saks had an online trunk show Tex., and Inge’s, Irving, Tex. Sara Albrecht, owner of Ultimo, for Oscar de la Renta, where the Ferrin’s label includes the mantra “Fashion With Freedom and said she sent out 1,000 e-mails to retailer featured nine resort looks Purpose,” refl ecting her commitment to women’s issues and to the customers and friends Wednesday, and six special order items. “We environment, among other social causes. promoting the Mizrahi trunk show like to include looks that we bought “We want women who wear our clothes to feel and inviting customers who were into, and we’re able to include spe- strong and beautiful, while also knowing that unable to make it to the Chicago cial order outfi ts that are pretty they are contributing to the betterment of boutique to participate in the on- An Isaac over-the-top that we didn’t have other women’s lives who have had less for- line version. (Mizrahi himself was Mizrahi to take an inventory stance,” said tunate circumstances,” she said. “At least 10 unable to attend the in-store event). gown at Incandela. The online trunk show percent of every sale goes to women rescued “We view it as a marketing tool. Ultimo’s tied in with a trunk-show event, out of human traffi cking and abusive envi- We just launched the Web site, online and hosted by Saks in San Francisco, ronments both at home and overseas.” and now it’s easy to launch a mass in-store in Lake Tahoe, where the line was This past spring, Ferrin was hired by mailing,” said Albrecht. Normally, trunk made available for preselling. Karen Noseff, owner of Dallas-based Ultimo’s trunk shows are promoted show. She said she makes the cus- Fortune Denim, to design tops, tunics and through window signs and mailings to tomer aware of the trunk shows jackets to coordinate with Noseff ’s denim Chicago-area customers. The online via e-mails, marketing them on the collection that launched about a year element, she expects, will enable the store to reach homepage and section pages, and working with ago. The new 30-piece collection is called a wider audience, especially when the store will their affi liates. Fortune Collection by Abi Ferrin. come up in Web searches for particular designers. Currently, Bergdorf Goodman, Neiman Marcus Wholesale prices for spring and sum-

The site showcases nine items from Mizrahi’s and Barneys New York aren’t hosting any online mer range from $50 for a tunic to $120 LIPPMAN ELIZABETH BY PHOTO resort/spring line, ranging from a $795 color- trunk shows. Nordstrom has experimented with for a long dress. blocked cashmere sweater to an $18,000 black- online trunk shows and has enabled customers to Noseff ’s goal in hiring Ferrin is to and-white coatdress and a $28,000 gold gown. learn about products directly from the designer build sales volume by tapping the syn- While the site asks customers to order trunk-show and preorder them, as it did this summer with ergies of each label with vibrant, sexy items by telephone, fall collections featured on- contemporary brand Milly. and affordable contemporary tops line can be ordered directly via the site. For both, Net-a-porter has scored with online trunk shows, that look good with classic and trendy Ultimo handles all fulfi llment. Deliveries of the starting with one for Roland Mouret’s RM collection denim jeans. resort/spring line begin next month. in July 2007, which drummed up over $500,000 in “The two lines complement each other and “We booked about $30,000 on a dozen pieces, four days. Last February, it made headlines again will help new and existing women’s specialty which, given the economy, is OK,” said Albrecht when it offered for sale two Halston dresses im- store accounts to get more multiitem transac- Monday. “Our trunk shows usually run at about mediately after the fall runway show for next-day tions as consumers buy outfi ts instead of items $100,000, but we are very happy with this, and it delivery. The site followed up in September with a as well as dresses,” Noseff said. A spring did drive a lot of traffi c to the Web site. Clients video of an exclusive Alexander McQueen runway Fortune Denim jeans, with spring wholesale style who viewed on the site came to the store to see it show, whereby customers were able to purchase prices of $75 to $100, are cut from Japanese from Abi in person, so it is hard to quantify what is exactly eight looks from the pre-spring 2009 collection two denim and include Chinese coin buttons and Ferrin. Web site and what is store traffi c — but both were months before they were normally available. Most quirky fortune cookie-style messages around draws for the show.” of the collection sold out within days. the waistband. WWD, TUESDAY, NOVEMBER 18, 2008 9 WWD.COM Textile & Trade Report Importers Preparing for Challenges on Trade By Ross Tucker trade agreements, Padilla believes the U.S. is putting itself at a disadvantage in the global economy. Some 100 NEW YORK — The sourcing community is bracing FTAs have been established between Asian countries, for the possibility of restrictive trade measures as none of which involve the U.S. Democrats take over the White House and boost their “The United States does not have the luxury of the majority in Congress. world waiting for us to fi gure out what to do about our Speakers at the 20th annual Textile and Apparel FTAs,” Padilla said. “We are already falling behind and Importers Trade and Transportation Conference, nowhere is this danger greater than in Asia, a region held Nov. 5 and 6 at the Chelsea Piers Event Center which is increasingly trading with itself.” here, approached almost sky-is-falling levels of alarm Increased attention to enforcement is clearly neces- when presenting the potential challenges fac- sary. Janet Labuda, director of the textiles and apparel ing the import business. Even concerns policies and programs division at U.S. Customs and over the global economic downturn IMAGES LOEB/AFP/GETTY SAUL OBAMA PHOTO BY Border Protection, said about $21 billion in apparel was were overshadowed by fears that imported last year under trade preference programs. President-elect Barack Obama and “We consistently, over the last few years, have a 35 to Democrats in Congress would tap 37 percent rate of noncompliance,” Labuda said. “The rising populist sentiment to justify Importers fear a protectionist Obama duty exposure if you look at all these statistics could protectionist trade policies. administration. easily be $1 billion worth of duty. With that type of ex- Bob Zane, chairman of the posure, obviously we’re going to be taking a harder look U.S. Association of Importers dence of what is likely to come. Jonathan at these transactions.” of Textiles and Apparel, which Fee, partner with Alston Bird, noted that Ocean carriers are feeling the impact of the slowing along with the American Import Obama had opposed the Colombia and global economy and have reported signifi cant declines Shippers Association organizes the South Korea free trade agreements, voted in trade volume from Asia to the West Coast. C.C. Tung, conference, noted that in 1998 about against the Central American Free Trade chairman and chief executive offi cer of Orient Overseas 50 percent of apparel was imported. Agreement and has criticized China’s currency International Ltd., said trans-Pacifi c trade volume fell The quality of those goods was often in- valuation practices. 5.7 percent during the fi rst half of the year. ferior and was limited in its design to do- “The House and Senate leadership is likely to “The contraction for the fi rst half of 2009 will be mestic-made merchandise. emphasize fair trade…versus free trade and to have an deeper,” he said. “If you move forward from 1998 to 2008, you’ll note increased focus on enforcement and labor and environ- Ocean carriers made considerable investments in that we have gone as an industry from 50 percent [appar- mental and product safety concerns,” Fee said. new ships and additional containers after China’s entry el imports] to 96 percent, and the product we now deliver Regarding China, Fee believes the Obama admin- into the World Trade Organization in 2001, Tung said. As tends to be far more sophisticated, far better quality and istration may have its hands tied as a result of the the world economy has worsened, however, ocean car- delivered under far better circumstances,” said Zane, a weak economy. riers are now left with a surplus of capacity, which is former Liz Claiborne Inc. vice president of sourcing. “In a failing economy or in a diffi cult world economy, expected to continue for several years. It also costs about 6 percent less to produce today can the new administration afford to take currency ma- Trans-Pacifi c trade also presents special challenges than it did in 1998. nipulation or similar trade retaliation action against to ocean carriers. Fuel expenses represented 21 percent “At no time in our history has the American public China, especially when that country holds nearly $1 tril- of total operating costs during the fi rst half. However, been able to get better product for less money under lion in U.S. debt?” Fee said. on trans-Pacifi c routes, fuel accounts for as much as 90 more reliable circumstances,” Zane said. Christopher Padilla, undersecretary of international percent of total costs. Carriers have responded to the However, Zane noted that while apparel accounts for trade for the U.S. Commerce Department, said Obama economy and rising energy prices by slowing ships down only 6 percent of all imports, the category provides 46 per- is likely to face more pressure to adopt a protectionist and adding ships to the route. cent of customs revenue. This situation, Zane warned, is stance than any president since the Thirties. Padilla “By traveling two to fi ve knots slower and adding one not likely to improve under the new administration. warned about the “growing forces of pessimistic popu- more vessel to the service loop, we can save up to $10 “You can count on more arcane and obscure regulation lism.” million per round trip,” Tung said. to further complicate the lives of importers,” Zane said. Padilla said focusing on China’s currency misses the Apparel represents the second largest import cate- A trio of prominent trade lawyers cited Obama’s mark. The bigger concern is that China has slowed the gory on trans-Pacifi c trade, but the high cost of conduct- voting record on free trade agreements and statements pace of its economic reforms almost to a standstill over ing business will force carriers to increase pressure on he made on the campaign trail regarding China as evi- the last three years. By failing to act quickly on free importers to recoup their costs. Costs, Economy Hit Intertextile Show By Lisa Movius last year because of tightened labor and environmental enforcement, higher wages and material costs, and the SHANGHAI — Exhibitors at the Intertextile Shanghai declining dollar, are hurting their margins more than the Apparel and Fabrics fair felt the sting of the weakening U.S. credit crisis. Still, fallout from recent economic de- global economy and are losing confidence that condi- velopments is only beginning to be felt in China. tions will improve next year. Business at the fair “is bad because of the market; the Intertextile Shanghai, which ended its four-day run U.S. economy is hitting us hard,” said Guo Qingli, market- Oct. 23 at the Shanghai New International Expo Center, ing director of Z by Zhonghe Cotton. “We had a lot of U.S. reported that its exhibitor list expanded 28 percent to customers, but they are delaying their orders. We do the 2,559, with domestic participants up 36 percent to 1,866 higher quality levels of cotton, so feel it the worst. We will and international producers increasing 20 percent to have to adjust, reducing or closing some offi ces.” 733. However, the number of exhibitors at sister fair The fair got mixed reviews from participants who Yarn Expo dropped to 55 from 91 in 2007, and visitors expressed frustration with its size and organization. Z to Intertextile in the fi rst two days were down to 32,000 by Zhonghe’s Guo said generating business was diffi cult Visitor attendance during the show’s fi rst two days declined. from 34,000 a year earlier. and while old customers had returned, new customers and [South] Korea each have about 40, and Australia, Show organizer Messe Frankfurt cited the poor eco- tended to be smaller players. the U.K., the U.S. and Malaysia all have a few.” nomic conditions as the primary factor for the decline At Tung Ga Linen, sales manager Bonnie Chen reported However, smaller producing countries are feeling in attendance. strong results, but attributed it mostly to a larger, better- the global economic pinch harder and faster than larger “Export fi gures have decreased, but the domestic placed and more ornate stand. Tung Ga Linen exports the economies like China. consumption is growing,” said a show spokeswoman. bulk of its product to the U.S. and European Union. In addi- The fallout will “coincide with the end of safeguards Tight restrictions on business visas to China — partic- tion to dealing with economic headwinds, Chen said Chinese on China and monitoring of Vietnam, so it will be hard- ularly for applicants from other developing countries — manufacturers are grappling with currency fl uctuations. er for us to compete,” Monika said. “Already there has that have been in place since spring are believed to have “The currency adjustment has gone too far,” Chen said. been a 1 percent drop in our exports to the U.S., and 70 crimped textile exports, as well as trade fair attendance. “We take an order, then after three months when it is done, percent of our exports are to the U.S. We are very wor- “The economy will have a lot of infl uence on every the price has changed and we lose money.” ried about the rest of the year and for 2009.” company and some will wait until they have the budget With currency instability and China’s do- before attending shows again,” said the spokeswoman. mestic production prices rising, the fair has Intertextile occupied 1.24 million square feet of fl oor increasingly transitioned into a global net- space and for the fi rst time organized domestic produc- working hub for budget apparel sourcing. ers according to end product, with sections such as wom- Producers from Southeast Asian nations and en’s, men’s, innerwear and activewear. Participants from Pakistan viewed China’s declining competi- Germany, Italy, Japan, South Korea, Pakistan, Portugal, tive advantage as their opportunity. Thailand and Taiwan were again grouped into national pa- “Garment production is a chicken vilions, with Taiwanese producers the largest contingent, in other countries but is an elephant in THE TIGER COMPANIES followed by Italy and South Korea. Source It, representing Cambodia,” said Kaing Monika, a repre- Tiger Button Co Inc - New York Southeast Asian nations, returned for a second year. Fiber sentative of the Garment Manufacturers’ Tiger Button (hk) Ltd - Hong Kong pavilions by Invista, Dow and Lenzing also expanded. Association in Cambodia. “It is 80 percent Tiger Button (India) Pvt Ltd. Larger and more export-focused producers expressed of our exports and 30 percent of our [gross Tiger Button BV - Amsterdam,The Netherlands the most concern about economic conditions, while some domestic product], employing 350,000 peo- Tiger Trimming Inc - New York smaller manufacturers were optimistic that still-strong ple. Cambodia has 310 apparel factories, of domestic consumption will buoy their business. All which the most are Taiwanese owned, about Tel:(212) 594-0570 Fax: (212) 695-0265 Email:[email protected] agreed that production costs that have been rising since 60 to 70. Then Hong Kong, [Mainland] China Dallas Fashion Awards Honorees Cater to Needs of Customers By Holly Haber be interpreted in so many differ- ent ways — every season we make DALLAS — Winners of the Dallas a new statement while maintain- Fashion Awards have a sense of ing the core of the brand,” Azria what women want. said. “We are really beginning to From Max Azria, who received push the envelope with our acces- the Fashion Excellence Award sories” and footwear. from the Dallas Market Center for his revival of the Hervé Léger col- ACCESSORIES: lection, to the eight merchandise SONDRA ROBERTS categories, these companies have Sondra Roberts won its second a fi nger on the buying impulse. Dallas Fashion Award for detailed The winners were selected in a leather handbags that retail from poll of retailers and presented at a $300 to $500 and are sold at about black-tie gala Oct. 25 at the Dallas 5,000 specialty stores. Market Center. Here, a look at the The company was launched honorees: in 1980 by Sondra Camche and her sons, Robert and Glenn, with FASHION EXCELLENCE AWARD: a black snakeskin sling bag that HERVE LEGER BY MAX AZRIA was picked up by leading retailers As designer, chairman and chief such as Bergdorf Goodman. executive officer of BCBG Max “We’re not the largest company Azria Group, Azria has developed on the block, but we quietly do a 22 fashion brands, but the one nice business between branded drawing a lot of attention lately is and private label,” said Glenn Hervé Léger. Camche, president and co-owner Azria bought the French house with his brother, Robert. “We fol- famed for the bandage dress from Hervé low the trends. We go to Europe The Seagram Co. Ltd. in 1999 and Léger by for leathers, shape and fabrica- dismissed Léger. He dabbled with Max Azria tion and reinterpret [what we’ve retooling Léger as a bridge collec- seen] in our own designs.” tion, but it wasn’t until Azria and his wife, Lubov, creative director of BCBG Max AFTER 5: MARC BOUWER GLAMIT Azria Group, last year restored the brand to its Marc Bouwer created Glamit about two years ago pricier designer roots that it took off. Retailing as a spin-off of his designer collection, and the sexy for $800 to $5,000, Léger is sold at top interna- silk dresses are sold in hundreds of independent tional retailers including Bergdorf Goodman, stores as well as Neiman Marcus, Saks Fifth Avenue, Saks Fifth Avenue, Nordstrom, Holt Renfrew, Nordstrom, Bloomingdale’s and Holt Renfrew. Harrods, Selfridges, Lane Crawford, Isetan and “It was the right look for the right price point,” Harvey Nichols Dubai. said Evelyn Anastos, executive vice president, not- “The bandage technique is something that can ing cocktail dresses are $395 to $550 and gowns,

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$595 to $1,000. “Our dresses and gowns use a 23-mummy silk, a much higher quality than stan- dard, and we design all the beading ourselves.” Bouwer’s partners in Glamit are Robert and Elaine Lai Rosen and Paul Margolin. BRIDGE/DESIGNER: ZELDA Zelda is best known for jackets detailed with embroidery, appliqués and leather trims, but it will grow into a full bridge collection for fall 2009. The company hired Patricia Redmond, for- mer design director at Dana Buchman, to round out Zelda with modern sweaters, blouses and pants, said Joann Casa, senior vice president. Retail pricing will be about $500 for an outfi t. “We wanted to be more brand based, so we are selling not only jackets but all the compo- nents of a true brand collection,” Casa said. “You will see a big evolution of what we stand Marc Taka Eskinazi for next fall.” Bouwer holds one of Lynn Glamit her looks. Ritchie JEWELRY: DEVON LEIGH Devon Leigh Sedlacek wanted to be a producer and screenwriter and “never in a million years” thought typically retail from $200 to $350. MODERNWEAR: LYNN RITCHIE she would be making jewelry. But when her own neck- “It is a very family oriented business,” said Krista Lynn Ritchie said her business is well positioned be- lace got attention on the red carpet, she began sell- Ward, who represents Taka at Moxie showroom in cause her printed silk knit sportswear and dresses offer ing them first at the farmers market in Los Angeles’ Dallas. “She designs her own prints with inspirations fashion at affordable retail prices — from $50 to $80. Hancock Park and then at her own store, which opened from Turkish mosaic tiles and tulips, which are the na- “It’s full-speed ahead,” said the designer, who started in 2002 in Los Angeles. tional fl ower of Turkey. It’s bohemian chic.” her line 19 years ago. “Despite the economy, we have a “My signature is hammered gold [vermeil], and I mix Taka sells to 500 specialty stores in the U.S. plus 40 strong reorder business and we are doing OK in these a lot of metals with gemstones, a lot of geode slices, so accounts worldwide. Taka has introduced handbags challenging times.” it’s bold but still feminine,” Sedlacek said. and jewelry. Some of Ritchie’s bestsellers feature a sheer printed net NM Direct and 750 specialty stores sell the line, layered over a different print on an opaque knit, all in silk. which retails from $230 to $1,200. CONTEMPORARY: KENSIE “We hand make everything in the back of my store, Kensie’s spring sportswear and dresses in cotton, silk CHILDREN’S WEAR: FLORENCE EISEMAN and they all look handcrafted,” she said. “If people are and linen typically retail at less than $100. Florence Eiseman has produced dressy clothes for well-to- spending money now it is on something special.” “It’s feminine, confi dent, very fashion forward and do children since 1945, but this year it stepped out with up- our price range is very affordable,” said Lani Karls, vice dated silhouettes and fresh hues of turquoise and green. CASUAL CONTEMPORARY: TAKA president and creative director. “I think we won for being a classic traditional prod- The colorful motifs and cultural heritage of Turkey Liz Claiborne Inc. bought Kensie and its sister brand, uct with modern features and fabrics and colors,” said are the main inspirations for Taka, which is designed Mac & Jac, three years ago from Karls, who launched Frank Botto, who bought the company 16 years ago. by 29-year-old Tania Eskinazi in Istanbul. In business them with her husband, Eric. Kensie is sold in major “We’ve tried very hard to be true to our customers and since 2005, Taka specializes in dresses and tunics in en- stores, including a shop-in-shop at Macy’s Herald to what Mrs. Eiseman made us.” gineered prints on silk, cotton and wool fabrics. They Square, and to specialty accounts. The average spring dress is $120. 12 WWD, TUESDAY, NOVEMBER 18, 2008 WWD.COM Luxe Pack Sees Large Turnout MEMO PAD FORBES PART TWO: Forbes on Monday continued to adjust its head count for the tough economy, restructuring its sales and marketing BEAUTY BEAT divisions. The moves follow Friday’s layoffs that saw the company shutter forbesautos.com and its conference division, and trim head MONTE CARLO, Monaco — A heady dose sales beauty division. The German count to a bare-boned staff at forbestraveler.com. In all, 43 people of glamour was the headlining trend fi rm showed “Alpha” a new cartridge have been laid off across the editorial and business sides during both at Luxe Pack in the face of that prevents product from touching days’ reorganizations. Forbes Media president and chief executive a global economic crisis. any metal parts of the packaging. “It offi cer Steve Forbes sent a memo Monday afternoon to staffers The packaging trade ensures the bulk remains completely outlining the changes, which “will enable us not only to better show, which ran from Oct. sterilized and no chemical reactions weather the current economic storm, but to move ahead quickly and 28 to 31, saw a spike in at- can occur,” explained Brunat. Pfeiffer profi tably when the global economies begin recovering,” he wrote. tendance to 6,478 visitors, has combined Alpha with a new dis- The sales divisions for Forbes and forbes.com will now be a 5.8 percent increase penser system “Irresistible,” which combined and organized into three different groups: the Brand over 2007. was developed originally for the Intelligence Group, or a handful of Forbes executives focused on “The mood is cau- pharmaceutical industry. It contains meeting senior-level advertisers and marketers to spearhead custom tiously positive,” said a fi ne Gore-Tex fi lter to block programs, led by Kevin Gentzel, former Web ad sales chief, as president Christophe Czajka Luxe bacteria and prevent the and group publisher of Forbes Media; the Integrated Solutions Group, led by president Mike Woods; Pack president, “we are product from oxidation and Forbes Media Sales and Service, comprised of the regional sales executives across the company, determined to deliver on and contamination. led by Avery Stirratt and Robert Pietsch, who will serve as co-presidents and chief advertising offi cers. the quality of the business Jean-Paul Imbert, Forbes conferences will now be integrated into these new sales groups. Each group leader will report and prove the show can in his new role to a newly formed offi ce of the chairman, comprised of Steve Forbes; Timothy Forbes, Forbes only be stronger in a mo- of president of Media president and chief operating offi cer, and Jim Spanfeller, president-ceo of forbes.com. ment of crisis.” Cosfi bel Inc. re- Though Monday’s consolidation focused on the business side, the edit side is soon to To that end organizers Items packaged by vealed some of follow, but to what extent is unclear. “We are also strengthening and expanding the editorial jam-packed the fair’s four- Cosfi bel Inc. the company’s integration at both Forbes and forbes.com,” Steve Forbes wrote to staff, and while both sides day run with 30 conferences savvy new pro- have shared talent where applicable for some time, “we are in the midst of conversations and launched a new workshop on motional and cosmetic packaging inno- to discuss ways to truly integrate the great talent in both organizations by sometime in early packaging design trends. vations at the show. Cosfi bel’s promo- 2009.” A spokeswoman said plans will not be fi nal for the next stage of editorial consolidation Among the highlights were tional “bomb box” comes with its own until January. — Stephanie D. Smith Ora Ito, a young French designer, internal lighting and sound system and Jonathan Ford, cofounder and de- is constructed with a raised platform GAME OVER: The T supplement franchise may be boosting the bottom line at The New York signer of Pearl Fisher and Marc so the product protrudes out. Times, but it appears sports aren’t quite as lucrative as fashion, design or travel. The Times said Rosen, who led a panel discussion “It stands out, the customer sees it Monday it would no longer publish Play, its glossy quarterly sports magazine, after the November called “Re-defining the Glamour and says ‘oh boy look at that’ and the issue. A spokeswoman confi rmed the move, but said no staff reductions would take place as a Aesthetic” on Oct. 29. retailer likes it too because though result, since most of the staffers were freelancers. Play launched in February 2006. — S.D.S. Rosen said the idea for his panel the box is designed so the product grew out of an earlier speech, in juts out the front, the back of it is FEWER ADS TO WATCH: The outlook for TV advertising in 2009 isn’t much better than for print, which he called upon the cosmetics grooved so the boxes can stack neat- as the Television Bureau of Advertising forecasts total spot ad revenues to decline by between industry to reembrace its past love ly,” said Imbert. Cosfi bel also had a 7 and 11 percent next year compared with this year’s revenues. The fi gures have been updated of glamour. “Our industry used to new lipstick case fi tted with magnets by the association since its original advertising outlook in September. The group also forecast personify glamour,” he said. “I think so it closes automatically once the two that national spot advertising will fall by between 11.5 to 15.5 percent next year, compared we lost it. We need to redefi ne it and ends meet. Dieter Bakic trussed up with the previous forecast of a 7 to 10 percent decline. The automotive, political, retail, bring it back. If that can be accom- his versatile mix-and-match plastic telecom and fi nancial sectors will be key for next year. — Amy Wicks plished,” he added, “we can bring packaging lines for skin and hair care people back to the counter.” with eye-catching decoration tech- DE BEERS DOUBLES UP: De Beers has more than doubled its U.S. consumer marketing budget That led Rosen to think about re- niques like a three-dimensional lace for the Christmas period in response to the credit crunch. David Lamb, chief strategic offi cer defi ning the meaning of glamour to wraps and relief printing. Bakic also of Forevermark, the recently-launched De Beers diamond brand, told WWD the company attract a younger generation of con- is marketing practical design addi- made the decision based on new research showing diamond jewelry will be the number-one sumers. “It is now about keeping up tions of push button lid openings and gift for the holidays in 2008, and that the majority of women prefer to receive one gift with with technology,” he said. “It’s also a an ultracompact mascara tube called enduring value, rather than several smaller ones. The campaign will break during Thanksgiving sense of supermodernity in use of ma- “Telescope Mascara” that works like weekend with an “emotional” TV ad, Lamb said, and 128 full-page ads in national and local terials, whether it’s steel or bling or a a telescope, untwisting to extend to newspapers such as The New York Times, and magazines including Forbes, Business Week, sense of retro,” he said. That is where 10 centimeters. Fortune and Time. The print ads will feature shots of the company’s leading products, such the issue spills over into packaging — Stephanie Epiro, with contributions as diamond studs, and solitaire and three-stone rings, and will be more conversational and design. Pointing to skin care, Rosen from Pete Born philosophical than in the past. Lamb said he believes diamond consumption will continue to said packaging tended to be generic thrive as consumers take stock of their priorities — and their belongings. “I don’t think anyone in the Nineties. But with the advent has ever sent diamonds off to Manhattan Mini-Storage,” he said. — Samantha Conti of high-priced brands in this decade, it became necessary to invest more in Baxter Heads to Urban Outfi tters the design. “If it costs $300,” he said, Men’s personal care brand Baxter “it should look glamorous.” of California is going Urban — with As an example, Rosen described a the Philadelphia-based specialty Safi lo Stock Plummets After Downgrades resin-based glass polymer, marketed fashion chain. by Eastman Chemical Co., that pro- Baxter items, including single By Andrew Roberts Deutsche Bank and Citi said the eyewear duces thick-walled crystal clear products and kits ranging in company risked breaching these again next containers. The inte- price from about MILAN — Safilo Group SpA fell nearly 30 year, as conditions worsened. (The average rior can be shaped $12 to $40, will be percent on the Milan Bourse Monday, after net debt/EBITDA ratio for listed luxury to create a visual launched at 10 Deutsche Bank and Citi downgraded the companies in Europe is less than 1.) effect. Courtland Urban Outfitters stock to “sell” from “hold,” following a profit On Friday, Safilo reappointed for- Jenkins, global mar- locations, includ- warning and the reappointment of the Italian mer ceo Roberto Vedovotto — replac- ket development ing stores in New eyewear firm’s former chief executive officer. ing Massimiliano Tabacchi — reasoning manager for food, York, Chicago, Safi lo’s share price sank to 78 euros, or Vedovotto’s knowledge and experience beverage and con- Los Angeles and 98 cents, less than a quarter of its value 12 would help the company achieve its stra- sumer packaging of Toronto, the Los months ago. tegic goals and create value in the medium Eastman Chemical Angeles-based fi rm On Friday, the company, which has li- term. However, Di Pasquantonio said the said, “That particu- said Monday. censes with Giorgio Armani, Dior, Gucci decision, which also saw Tabacchi move lar polymer works The move is and Valentino, among others, revised down up to executive vice chairman, “further well for skin care billed as an anchor its 2008 revenue and margin forecasts for compromises the company’s credibility.” because the design for a men’s grooming the second straight quarter — predicting a Citi analyst Alberto Checchinato cau- is very engaging to the cus- Baxter items going merchandising concept at 2 percent drop in revenues from 4 percent tioned: “Despite the benefi t of [Vedovotto’s] tomer, and from a perfor- into Urban Outfi tters. Urban Outfi tters, accord- growth and a net income target of 1 per- experience and detailed knowledge, we mance standpoint it is very ing to Baxter president cent of sales, from 3 to 3.5 percent — fol- believe [as] some investors that fresh man- good because it is tough, Jean-Pierre Mastey. lowing a 63 percent decline in earnings in agement with a strong track record in busi- and has a good chemical resistance “Urban Outfi tters, like Baxter of the fi rst nine months of this year. ness turnaround could have been prefer- with the product it holds.” California, has put a lot of effort and For the third quarter ending Sept. 30, able to meet current challenges.” The other speakers on the panel thought into raising their profi le — Safi lo reported a net loss of 6.7 million Vedovotto reprises the role he held be- were Felix Mayr-Harting of Givaudan, to creating a lifestyle destination for euros, or $10.1 million, compared with net tween 2002 and 2006, following a two-year Sue Phillips of Scenterprise and Mary [products for] men that echoes our profi ts of 5.4 million euros, or $7.4 million, stint at the now-defunct Lehman Brothers Manning of Manning Associates. boutique retail philosophy,” he said of during the same period last year, prompt- Holdings Inc. His priority will be to fi nd a Other firms upped the glamour the decision to partner with the chain. ing Deutsche Bank analyst Francesca Di solution to Safi lo’s net indebtedness, which factor on their offer. Pfeiffer Beauty Baxter is carried in about 150 do- Pasquantonio to ask, “How bad can it get?” Deutsche Bank forecast could reach 580 unveiled a glossy new brand image mestic boutiques, including Apothia Sales fell 3.1 percent to 228.7 million million euros, or $731.2 million, at year- it dubbed “the touch of beauty” with at Fred Segal in Los Angeles, Base euros, or $314.3 million. Dollar fi gures were end, or 4.6 times EBITDA. Wenge wood containers topped with in Miami, Blackbird in Seattle and converted at average exchange rates. Di Pasquantonio said despite the company soft touch dispensers, positioned Freeman’s Sporting Club in New Safi lo said it had renegotiated its debt renewing its lucrative contract with Gucci last to capture the luxury beauty mar- York. The brand generates about $2 covenants — allowing for a net debt over week, “the challenging environment will con- ket. “We want to be more present in million in retail sales annually, ac- earnings, before interest, taxes, deprecia- tinue to put more pressure on the already vul- the beauty industry,” said Yannick cording to industry sources. tion and amortization ratio of 4.85 times, nerable balance sheet, while operating profi ts Brunat, vice president marketing and — Matthew W. Evans from 3.5, until June 2009 — although continue to be eaten up by interest charges.” WWD, TUESDAY, NOVEMBER 18, 2008 13 WWD.COM Small Retailers Facing Big Problems Continued from page one Curve is than I do,” said Lily Hamrah, owner of Hamrah’s, a de- offering signer boutique in Cresskill, N.J. “They get markdown services money and can ship merchandise back to the vendor. previously Everybody’s talking about this economy. I’m watching reserved for my inventory very closely. Maybe I’m not buying 100 celebrity sweaters, I’m buying 50 sweaters because people aren’t clients. buying as much. We’re adjusting certain price points. We’re carrying popular-priced merchandise such as Splendid T-shirts.” “Big stores can take 60 to 120 days to pay vendors and they can take chargebacks,” said Evelyn Gorman, who blamed the economy for the closing of Mix, her sharply- edited boutique in Houston. At its peak, Mix sold Balenciaga, Lanvin and Alexander McQueen gowns with fi ve-digit price tags to the wives of oil barons. “One swing of the econom- ic pendulum can be deadly for an independent,” said Gorman. Gorman made the painful decision to close Mix in January after reading the handwriting on the dressing room wall. PRESCRIPTIONS FOR “I saw my very best customers, fashion INDEPENDENT RETAILERS people who are big admirers of good 1. Gain a deeper understanding design, start to question the cost of fash- of your customers so you can buy ion,” she said. “They had the capacity to more accurately. buy whatever they wanted. They came 2. Stay true to the store’s to the store less often and purchased niche. Not abandoning luxury less often. They felt almost conspicuous positioning will be important womenw will justify purchasing now and Saturnia as well as national chains like H&M and about consuming. Retail therapy is not when the economy improves. becauseb it’s on sale. The way the big Starbucks. “Women are buying differently because of working anymore. A $7,000 crocodile 3. Treat the store like a brand storesst start to promote so early sends the economy, regardless of their [fi nancial situation],” handbag is gauche. People are seeing with its own distinctive identity a signal not to shop, but to wait for said Jennifer Lorpachio, owner of Dighton Rhode on stock portfolios dwindle and housing — logo, packaging, advertising markdowns.”m Lewis Street in Greenwich. “They’re making more edu- prices sink lower. No matter where they and marketing. It will be top-of- According to government statistics, cated choices and thinking about the longevity of the are fi nancially, it has an effect.” mind with consumers. twotw out of three new businesses fail. item rather than the impulsiveness. They’ll buy less, but Mix’s prices on European designers 4. Manufacture products yourself DuringD the fi rst half of 2008, 2,831 clos- they’ll buy the best.” also rose sharply last year because of and build healthier margins. ingsin were announced, compared with Lorpachio is mailing notes to clients, sending designs the weakened dollar against the euro. 5. Seek out one-of-a-kind or 1,5221 closings in the fi rst half of 2007. to their homes for approval and working in customers’ “What I bought at $1.27 to the euro, statement-making pieces. ApparelA stores represented 34.7 per- closets to see what they have and what they need. She a year or two ago, is now $1.60,” she Consumers seem willing to spend centc of the closures, followed by home also shows clients how to wear an outfi t several differ- said, speaking before the euro’s recent on the extraordinary. entertainmente stores at 28.8 percent. ent ways because multiple-use merchandise has a high- decline (it now trades at about $1.25). While Hamrah said the economy er perceived value. “Customers will say, ‘I only have “That throws the budget into chaos.” hash her watching her inventory very such an allowance this season and I have to be cau- “We’re tightening up our belt be- closely,c she’s not refraining from buy- tious,’” she said. “We’re trying to create loyalty by being cause we’re not going to be expanding or opening six ing interesting pieces like Koi Suwannagate’s cashmere honest to a fault. If we don’t have something suitable for to eight stores per year,” said Khajak Keledjian, co- bustier, she said. a shopper, we tell her right away.” founder of Intermix. “I’m gearing up for tough times Hamrah’s trump card during this bleak season has Lorpachio is also keeping an eye on prices. About 60 ahead. I’m a small entrepreneurial business, I’m not a been a new private charge and rewards program, where percent of Dighton Rhode’s assortment is European, with public company.” customers receive a $20 gift certifi cate for every $1,000 labels such as J.Mendel, Balenciaga, Lanvin, Nina Ricci, As if the dismal economy weren’t bad enough, spent. The charge card, which was launched in June, Bottega Veneta, Givenchy, Marni and Yves Saint Laurent. Keledjian said his business is all the more diffi cult can only be used at the store. “The response has been “I didn’t go forward for a season with Martin Grant be- because “department stores are giving the store away. phenomenal,” Hamrah said. “It’s a private charge, so cause I had to buy it in Europe,” she said. “The other Everything is 40 percent off — on products that they just husbands don’t see it. Out of the more than 100 accounts collections were bought here in U.S. dollars. We have a got in the store. They’re giving customers triple miles I’ve opened, I only had one rejected. Most of my custom- really big Martin Grant following. But with the euro, I and credit cards with no interest,” he said, adding it’s ers are good risks.” didn’t want to have to charge a client $4,000 for a coat.” hard to compete with those types of incentives. Nevena Borissova, owner of two Curve boutiques, “There’s a move toward a sense of quality and getting Keledjian even had to take the painful step of laying in SoHo and on Robertson Boulevard in Los Angeles, value for your dollar,” said Valerie Feigen, co-owner of off about six employees or less than 15 percent of the staff has been testing different strategies to pull shoppers Edit, a boutique on Lexington Avenue and 90th Street at the corporate offi ces. “We tightened up a little bit from into the stores and encourage them to buy. “Business in Manhattan. “People are buying pieces that are really every department,” he said. “We were a highly staffed has been challenging,” she said. “Even if people have special. More thought is going into jewelry purchases. company. We already had a lot of people in the corporate money, they feel like they shouldn’t be spending. I There’s more care and less impromptu purchasing. Our overhead based on our 2008-2009 expansion plans.” thought [sales] would go up 20 percent in New York, but customer has a wardrobe and she has jewelry. She’s Jeffrey Kalinsky, founder of Jeffrey New York and they went down 8 percent. People aren’t that loyal any- looking for that piece that really adds to her wardrobe.” Jeffrey Atlanta, also complained about department store more. At the end of the day, the economy is not good and Despite a loyal following for her feminine designs promotions. “They absolutely kill their own business,” we’re making less money.” with a Forties fl air, prestigious wholesale accounts such he said. “They get into an overinventoried position and Clients who seemed concerned about prices are as Barneys New York, Opening Ceremony, Louis Boston they ruin everything for everybody. Barneys New York experiencing sticker shock, Borissova said, especially and Harvey Nichols, Jane Mayle revealed she will exit in Manhattan put all its men’s designer merchandise on because the cost of European goods has sharply risen the business she founded in 1998 and shutter her NoLIta sale for one day at 40 percent off. Why do the brands this season. Some customers have even begun asking boutique at 242 Elizabeth Street in February. The econo- allow that and not come down on them? The really rich Borissova for discounts. While Borissova can’t afford to my, the challenges of running a fashion business, debt and give a 20 percent discount, she has begun offering cer- the inability to secure fi nancial backing can all be factors tain services previously reserved for celebrity clients in the decision to close shop. Mayle also blamed the out- Jennifer to her general customer base, such as home delivery of-control fashion system and the expiration of her store’s Lorpachio, of items for a customer’s approval. lease as catalysts that prompted her to call it quits. owner of Borissova has noted other developments that didn’t In the West Village, restaurants have been closing Dighton exist when the economy was healthier. For example, on Hudson Street, and Fassbinder, a jewelry gallery on Rhode. some stores have been unable to pay designers for or- Eighth Avenue near Jane Street featuring the designs ders, leaving the designers holding the inventory. Several of some 20-plus artisans, shuttered during the summer. designers have called Borissova and asked her if she’d “The rents are humongous and the business is going be willing to sell the merchandise on consignment. down,” said Stephane Gerbier, co-owner of YoyaMart on The bleak economy has forced her to rethink her Gansevoort Street. “You have a lot of empty spaces. The buying strategies. She now looks for garments that vis- economy and the real recession hit at the beginning of ibly communicate longevity and value. “The way we’re the summer. You have to adapt to the situation. It’s a chal- trying to cope is by buying pieces that could have a lon- lenge to look at merchandise in a different manner.” ger selling season,” she said. “I made a very conscious Gerbier has been doing just that. “The euro has decision to buy seasonless or one-of-a-kind items. made it very diffi cult and unprofi table to sell European “Shopping for an outfi t from a European designer products,” he said. “To adapt, we are trying to capital- has become like shopping for a car,” Borissova said. ize on our brand. Instead of buying European down “I dropped collections that were too expensive. Viktor jackets and paying $7,000 in customs and shipping costs & Rolf was a big one. I was very honest with the de- for 120 jackets, we are making our own jackets through signers. I said, ‘No one is going to spend that in the an American company. We hope we’ll be able to create U.S.’ After we paid customs, we made no money [on more American products. We’ll spice up the store with European merchandise] last year and it’s probably European brands.” going to be a wash this year. We’re paying 30 percent YoyaMart will weather the economic storm, Gerbier in customs and freight charges.” vowed. “YoyaMart has built up a name and clientele. If we Greenwich Avenue in Greenwich, Conn., is home had been a new business, it would have been much hard-

CURVE PHOTO BY TALAYA CENTENO; LORPACHIO BY STEPHEN SULLIVAN BY CENTENO; LORPACHIO TALAYA PHOTO BY CURVE to independents such as Betteridge, Splurge, Cochni er. So many people are closing businesses right now.” 14 WWD, TUESDAY, NOVEMBER 18, 2008 WWD.COM Financial For full daily stock changes, see WWD.com. Lamy Calls for Action on Trade Finance Specialty Stores Bear Brunt of Sell-off By John Zarocostas its private arm, the International Finance By Arnold J. Karr decline from Coldwater Creek Inc., Corp., would boost its global trade fi nance down 18.5 percent to $1.28. Charming GENEVA — World Trade Organization program to $3 billion, up from $1.5 billion SPECIALTY STORES SUSTAINED THE Shoppes Inc., Eddie Bauer Holdings director-general Pascal Lamy is calling at present. But the World Bank predicted worst damage as retail stocks took an- Inc. and Abercrombie & Fitch Co. for steps to cope with the growing gap in that world trade in volume will contract other beating Monday, their fifth day of took hits of 16.5, 14 and 13.4 percent, global trade fi nance that is adversely af- 2.5 percent in 2009, down sharply from the decline in the last six sessions. respectively. fecting exporters, especially expected 5.8 percent ex- The Standard & Poor’s Retail European markets closed lower. In from poorer nations. pansion this year, as glob- Index closed at 239.98, off 6.6 points, Paris, the CAC 40 was off 109.44 points, “The market currently es- al growth is forecast to or 2.7 percent. The drop was slightly or 3.3 percent, to 3,182.03. In London, timates the liquidity gap in expand by only 1 percent, greater than the major indices. The the FTSE 100 closed off 100.81 points, trade fi nance at about $25 bil- down from this year’s es- Dow Jones Industrial Average lost or 2.4 percent, at 4,132.16. In Milan, lion — this is a sizable sum,” timated 2.6 percent. 223.73 points, or 2.6 percent, and the shares of Safi lo Group SpA lost almost Lamy told WTO member coun- The contraction S&P 500 was down 22.54 points, also 30 percent of their value, falling 0.23 tries at the end of a special would be the biggest 2.6 percent, to 850.75. euros to 0.55 euros, or 69 cents at cur- meeting Wednesday with ex- since the global re- The continuing wave of lower third- rent exchange, after Friday’s report of perts from the International cession in the early quarter results, and reduced fourth- lower earnings and sales in the fi rst Monetary Fund, the World Eighties. quarter expectations among retailers, nine months of the year. IT Holding Bank, major private banks Rich nations are ex- contributed to the downward motion, SpA’s stock was down 9.7 percent to 0.20 such as J.P. Morgan Chase & pected to see their inter- which followed Target Corp.’s disclosure euros, or 25 cents, but, in Frankfurt, Co. and Citigroup, and export national commerce shrink of a 23.8 percent decline in third-quar- Escada AG was up 15.3 percent to 4.61 credit agencies. 0.1 percent, while real ter profi ts. Citigroup’s announcement euros, or $5.81. “If trade fi nance is not tack- of 52,000 job cuts and an analyst down- Results in Asia were mixed, with led, we run the risk of further grade of Alcoa Inc. also pushed equities Tokyo’s Nikkei 225 advancing 60.19 exacerbating this downward toward the red. points, or 0.7 percent, to 8,522.58, and spiral,” said Lamy, adding that If trade fi nance is not Of the dozen worst performing the Hang Seng Index in Hong Kong re- access to such credit at af- stocks tracked daily by WWD, four treating 13.13 points, or 0.1 percent, to fordable rates “must be main- tackled,“ we run the risk of were specialty stores, with the biggest 13,529.53. tained in such critical times to ensure that international further exacerbating this trade can continue to play its shock-absorbing role.” downward spiral. He said the view expressed by traders at the meeting is that — Pascal Lamy, World ” Trade Organization 10 BEST PERFORMERS “the situation is likely to dete- riorate in the months to come.” DAILY COMPANIES P/E VOLUME AMT More than 90 percent of global trade trans- output in developing nations will expand actions involve some form of credit. by only 4.5 percent, down from a projec- HIGH LOW LAST %CHANGE During the Asian fi nancial crisis in tion of 6.4 percent, the World Bank said. 1997, the sudden cutoff in credit lines By comparison, the IMF estimated for the fi nancing of imports and exports this month that world output would 0.69 0.41 General Growth (GGP) 2.0 16676293 0.69 +56.82 led to a collapse in trade at the height of gain 2.2 percent next year, with rich the meltdown. nations posting a decline of 0.8 per- In the current crisis, Lamy said even cent, while emerging nations would 0.62 0.44 Tefron (TFR) - 15300 0.57 +26.67 though the slowdown in trade has seen a boost output by 5 percent. The IMF decrease in demand for trade fi nancing, said growth in the volume of trade in 0.23 0.20 Frederick’s of Hollywood (FOH) - 28205 0.22 +22.22 there has been an even bigger fall in the goods and services would slow to 2.1 supply of credit liquidity. percent, compared with this year’s ex- 0.48 0.37 Hartmarx (HMX) - 36370 0.46 +12.20 The World Bank has announced that pected 4.6 percent uptick. 284.00 264.00 Asos * (ASC:L) 32.4 910475 278.00 +8.17 Labor Rights Violations Hurt Jordan Exports 1.41 1.25 Pacifi c Sunwear (PSUN) - 3280379 1.28 +4.92 GENEVA — Jordan’s apparel sector, which The Jordanian government acknowl- 11.64 11.23 Duckwall-Alco (DUCK) - 839 11.64 +3.44 is heavily dependent on U.S. exports, has edged the problem this year after re- lost ground in the post-quota era amid ports and complaints from the U.S. 263.50 253.50 Hennes & Mauritz * (HMB:ST) 14.5 3434390 260.50 +2.96 cases of abusive labor practices, a World State Department, the International Trade Organization report said. Textile, Garment & Leather Workers 70.62 65.79 Chattem (CHTT) 20.4 215627 69.26 +2.96 Violations in apparel factories that Federation and the National Labor employ Asian migrant workers, who Committee. But the U.S. criticized the 8.74 8.08 Revlon (REV) 8.3 174742 8.50 +2.78 account for the bulk of the workforce government’s response as “primarily… in the country’s qualifi ed industrial administrative penalties,” and noted zones, or QIZs, has put the sector under that the “courts convicted three indi- close scrutiny. viduals for physical abuse of foreign In 2007, imports of textiles and appar- workers in a factory and sentenced el to the U.S. from Jordan declined 8.5 them to fines rather than sufficient 10 WORST PERFORMERS percent to $1.14 billion. From January prison sentences.” through August of this year, they were In January, the government closed DAILY COMPANIES P/E VOLUME AMT down 13.2 percent to $788 million. one factory after repeated violations for Shipments from the QIZs accounted nonpayment of wages, overtime, physical HIGH LOW LAST %CHANGE for $652 million, down 13.7 percent, ac- abuse and poor living conditions. After cording to WTO statistics. More than 90 the union demanded the government percent of Jordan’s apparel exports are uphold the rights of 176 Vietnamese 0.70 0.55 Safi lo * (SFL:MI) 6.3 5273640 0.55 -29.29 destined for the U.S. workers in a Taiwanese-owned factory, In contrast with the apparel sector, Jordan’s Ministry of Labor pledged to 3.15 2.27 Glimcher (GRT) - 557054 2.35 -25.40 Jordan’s minister of trade, Amer Al- ensure migrants are given the same Hadidi, told a WTO session examining rights as Jordanian workers. 0.19 0.15 Blue (BLHI) - 12394 0.15 -25.00 the country’s trade regime that total ex- The labor clause in the 2001 U.S.- ports grew 9.5 percent in 2007, and the Jordan Free Trade Agreement stipulates 1.77 1.25 Quiksilver (ZQK) - 1705209 1.25 -22.84 economy expanded 6 percent. With rapid adherence to internationally recognized growth in the fi rst half of this decade, labor rights, including the right of as- textiles and apparel emerged as Jordan’s sociation, prohibition of forced or com- 4.96 3.56 CBL (CBL) 9.7 4341616 3.83 -21.19 chief export, largely because of the QIZ pulsory labor and acceptable conditions initiative that allows companies located of work with respect of minimum wages 1.63 1.28 Coldwater Creek (CWTR) - 765519 1.28 -18.47 in these areas to export duty free and and hours of work. quota free to the U.S., the WTO said. Asked about the problems in Jordan’s 7.39 6.02 Brown Shoe (BWS) 6.4 935304 6.10 -18.34 With global quotas limiting exports QIZs, a spokesman for U.S. Trade to the U.S., foreign apparel enterprises Representative Susan Schwab said 1.55 1.26 Retail Ventures (RVI) 0.7 114452 1.29 -17.83 from China, Taiwan, India, South Korea, Jordan has made “important progress” Pakistan, Sri Lanka and Turkey relocated that includes “increased and improved 0.95 0.81 Charming Shoppes (CHRS) - 1490345 0.81 -16.49 and invested in Jordan to take advantage labor inspections, which have resulted of the QIZ trade preferences. However, in in unprecedented fi nes and even some recent years cases publicized by advoca- factory closures. The government of 0.44 0.23 Tarrant Apparel (TAGS) - 51421 0.39 -15.20 cy groups involving sweatshop conditions Jordan has drafted appropriate mea- and forced labor have been uncovered at sures and pledged to seek passage of ad- * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the some of the more than 50 apparel facto- ditional reforms.” London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs ries in the QIZs. — J.Z. and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. WWD, TUESDAY, NOVEMBER 18, 2008 15 WWD.COM

Rob Smith and Industry Turns Out to Support Causes Tim Gunn

RECESSION OR NO RECESSION, FOR THE MORE Macy’s Inc., particularly Rob Smith, executive vice than 1,000 lesbian, gay, bisexual, transgender and ques- president and general merchandise manager of juniors, tioning young people who receive help at the Hetrick- cosmetics and dresses for Macy’s East, has been a major Martin Institute, it doesn’t matter. “They continue supporter of HMI. Smith has chaired the event for three to need a hot meal and a roof over their heads,” said years and was recognized for his efforts. “I clearly re- Thomas Krever, executive director. member the fi rst time I took a tour of HMI and met with Krever was addressing a crowd of more than 700 the youth. I was astounded by their courage,” he told at Cipriani on 42nd Street in Manhattan last week for the crowd. “HMI teaches us the right to be who we want the annual Emery Awards dinner, this year raising $1.2 to be and who we want to love.” million for HMI, which is the home of the Harvey Milk “The young people there are simply exceptional,” High School. said Tim Gunn, chief creative of- The event honored actress Mary-Louise Parker, who fi cer of Liz Claiborne and mentor starred in “Longtime Companion,” one of the fi rst mov- for “Project Runway,” who was ies to confront AIDS; Peter Wilson, who hosts HMI’s host for the evening. “I marvel at annual Hamptons event at his home; Judith Torres, their tenacity to just be. It causes who turned her life around at HMI, and the MAC AIDS me to reflect on my own teen Children has awarded more than $2 mil- Fund. The award is named after the late Dr. Emery S. years. I really didn’t know who I lion in cash grants to 70 change makers in Hetrick, who cofounded HMI in 1979 with the late Dr. was. I knew who I wasn’t.” 35 countries. A. Damien Martin. Hetrick-Martin, located at 2 Harry Leibowitz, founder and chair- Astor Place in Manhattan, is a man of World of Children, described the leading provider of social support John individuals and their work for children. and programming for at-risk lesbi- Demsey The honorees were Rita Conceição, Ricky an, gay, bisexual, transgender and and Eve at Richard Anywar, Dr. Edward Zigler, Dr. questioning youth, 12 to 21 years the Emery Jumana Odeh, Tibebe Maco, Frank Brady, old throughout New York City and Awards. Talia Leman and Darius Weems. the metropolitan area. World of Children is supported by re- Also last week, Jim Gold, chief tail and design veterans, several of whom executive offi cer of Bergdorf Goodman, hosted a din- were at BG, including Kenneth Cole, Marvin Traub, ner in the BG restaurant for 97 guests to support the Jerry Politzer, Michael Steinberg, Ron Klein, and Kay World of Children and its 2008 honorees who are con- Isaacson-Leibowitz. sidered “change makers” since their work has improved In the midst of the grim economy, “To come into Kenneth Cole, Jim the lives of children in desperate situations around the a room like this, it’s fantastic and puts it in perspec- and Beth Gold and world. They include youngsters who are victims of sex- tive,” Gold said. “This helps us get through some chal- Harry Leibowitz. ual abuse surviving in Brazil’s notorious shantytowns or lenging times.”

PHOTO BY ANDRE BECKLES PHOTO BY AIDS children living in Ethiopia. Since 1998, World of — David Moin

WWD.COM/CLASSIFIEDS

For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise.

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DESIGN ASSISTANT experience in import production. Must •Pick & Pack Services Major Better Brand seeks detailed ori- be able to coordinate all aspects of pro- •Apparel & Hardgoods ented, well organized individual to assist duction. Computer literate, garment •Consolidation Services designer. Must be proficient in Adobe specing & garment knowledge preferred. Illustrator & Photoshop, flat sketching Email to: [email protected] LEAD SELLER WANTED •Established 1977 prints and colors, and able to make New York Company looking for a well •Prestigious Client List tech packs. 1-2 years experience - Email REPLENISHMENT ANALYST $85- 95k. established seller that has experience •Great Management Team resume to: [email protected] or fax Strong exp in Walmart retail link. in the private label sales portion of the Showrooms & Lofts •Dedicated Hardworking Employees to 212-716-1605 Monitor/adjust/create replenishment better/contemporary business. Higher BWAY 7TH AVE SIDE STREETS Investor/Partner wanted for long term and forecast system settings using prices and values have already estab- Great ’New’ Office Space Avail business. Marketing Design & Sales DESIGNER ASSOCIATE $40K. Min CPFR or exp in Inforem. Midtown. lished at retail, now its time to move ADAMS & CO. 212-679-5500 Team has a designer label. Needs finan- 1-2yrs exp in fabric research, pricing, etc. [email protected] 973-564-9236 into higher volume private label to CALL: Rob Brody cial arm. If you have capital & want Exp in outerwear helpful, not nec. Mdtn. compliment our growing and successful sales & long term business. 551-580- 4956 [email protected] 973-564-9236 business. Pay commensurate with (201)865-1100 Retail Coordinator/ experience.Serious enquiries only. DESIGNER GRAPHICS_$60 to $70k+ Email to: [email protected] GIRLS-TWEENS Assistant Buyer Mjr. NYC apparel co. has a new brand w/ Main Responsibilities: Forecasting an urban flair & is fashion forward & trend, analyzing sales and sell-thru seeks a designer w/ a strong graphics Open to buy and buying for RTW and Sales for Far East Mfr 231 West 39th St. Mfr with NY showroom seeks sales- Beautiful, high trafficked est. PATTERN/SAMPLES backgd. in the girls or juniors mkts. (pre- accessories. Inventory management. fer urban brand expr) to work on a sports- Experience: 2-3 years as assistant buyer person specializing in Underwear, multi-line contemp shwrm in Garment center location. Professional Patternmaker Sportswear, or Loungewear. Must have 231 West 39th St. is looking for /Reliable Quality. Men & women all style. Experienced sportswear, jackets, wear collection. Must have excl. Illustra- in high end department store. Knowledge tor & Photoshop skills. & tech packs. of Cegid system a plus. Email resumes: current strong relationships with big someone to share with a single Low Cost. Small production. 212-563-3331 dresses, missy and large size. box retailers, chain stores, or depart- contemp collection. Temp or perm. 973-985-1205 E-mail resume:[email protected] [email protected] (Fax) 917-591-2521 (Tel) 914-337-3660 ment stores. Please email your resume Email: [email protected] & expected compensation package to Retail Planning Assistant [email protected] GRAPHIC ARTIST Growing apparel co. seeks asst. to ana- New York based womenswear company lyze statistical data for mass market re- seeks experienced graphic artist for in tail. 1-2 years exp. in retail/wholesale SALESPERSON house graphics lead role. Pay commen- planning. Skilled in retail math Fast growing bridal co., seeking exp’d surate with experience. Email to: concepts/applications. Proficient in excel. sales person, w/ est’d contact with [email protected] Email your resume: [email protected] stores & buyers, full or part time, salary plus commission, e-mail or fax to: MARKER/ GRADER COMPUTERIZE STUDIO RAY [email protected] / 732-422-4041 High End Fashion Co. looking for ex- ASSISTANT DESIGNER perienced, top notch person with min Boys 8 to 20 outerwear. Creative with strong illustrator skills to do cads and SALESPERSON WTD 5 yrs experience in marker/grader. Import sweater co sks salesperson for Must have extensive knowledge in Lectra presentation boards, detail-oriented to communicate with overseas and do all Catalog sales. Must have catalog follow- system. Great salary and health ins. ing / exp. Email: [email protected] E-mail resume: follow-up, some exp preferred. [email protected] [email protected] Business as Usual

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