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Go with the Flow PARIS — Jean Paul Gaultier’S Spring Collection for Hermès Was Full of Beautiful Basics, Including Suede Baseball Jackets and Polished Pantsuits

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COACH NET UP 34%/2 WAL-MART HEADS BACK TO BASICS/3 WWDWomen’s Wear Daily •WEDNESDAY The Retailers’ Daily Newspaper • October 25, 2006 • $2.00 Sportswear Go With The Flow PARIS — Jean Paul Gaultier’s spring collection for Hermès was full of beautiful basics, including suede baseball jackets and polished pantsuits. Here, some of them: a fl owing lace dress with a fi chu neck, worn under a tailored vest and over a patchwork number. Bound for New York: Nordstrom in Drive To Open City Flagship By David Moin NEW YORK — Nordstrom is getting more serious about establishing a store in Manhattan as part of the chain’s program to elevate its fashion profile and sustain expansion. The $7.7 billion chain is being bombarded by brokers and developers pushing properties and has checked out some high-profile locations, although nothing has been signed. Nordstrom is looking for a location of 180,000 to 250,000 square feet. “Almost every week, someone has a different site or plan for us,” said Pete Nordstrom, president of merchandising See Nordstrom, Page 12 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY 2 WWD, WEDNESDAY, OCTOBER 25, 2006 WWD.COM Coach Net Soars 34.2% in Quarter WWDWEDNESDAY By Vicki M. Young Sportswear hile Coach Inc.’s first-quar- ter results showed an ac- FASHION W Tommy Hilfi ger hit on campus classics for spring, Ann Taylor Loft went celeration of the company’s per- formance in its U.S. full-price 4 Americana, Ann Taylor kept on career and Calvin Klein hit the archives. business, top-line growth in Japan was robust as the handbag GENERAL and accessories’ maker contin- Nordstrom executives are getting serious about establishing a store in ued to gain market share. Manhattan to elevate its luxury appeal and propel its national expansion. The company said net income 1 for the three months ended Sept. Coach’s fi rst-quarter results showed gains in U.S. full-price business and 30 rose 34.2 percent to $125.6 mil- 2 strong sales growth in Japan, as it continued to increase market share. lion, or 34 cents a diluted share, Tom Ford unveiled his fi rst Web site featuring images of his eyewear and from $93.6 million, or 24 cents, in information on his new fragrance, Tom Ford Black Orchid. the same year-ago quarter. The 2 analyst consensus estimate had MAINSTREAM: Vendors and retailers at a panel discussion said the biggest Coach pegged to earn 31 cents. 6 challenge in apparel today is how to increase speed to market. Sales rose 23.4 percent to $553.9 BEAUTY: Global beauty giant L’Oréal said Tuesday it has acquired million from $449 million. French organic beauty manufacturer Laboratoire Sanofl ore. “Clearly there were two driv- 8 ers of Coach’s growth. First, the WEST: Loose and easy best describes the looks and mood that prevailed continued entry of new con- 13 at the Los Angeles contemporary fashion market that ended Tuesday. sumers to the franchise, many new stores, midsingle-digit retail Mike Tucci, president of North Classifi ed Advertisements.............................................................14-19 of whom are trading up to the comps and market expansions. American Retail Division, told Coach brand, and second, exist- Indirect sales rose 11 percent to analysts that the company has To e-mail reporters and editors at WWD, the address is fi rstname. ing consumers with whom Coach $150 million from $134 million. 10 key item concepts for holiday. [email protected], using the individual’s name. is gaining a greater share of their The ceo said the company has This includes satchels in a range growing accessory wardrobe,” been emphasizing new “usage of sizes and fabrications ranging WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. said Lew Frankfort, chairman occasions” for its products such from $328 to $698. VOLUME 192, NO. 87. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one and chief executive offi cer, dur- as weekend, through Signature The company provided sec- additional issue in January, two additional issues in March, May, June, August, October, November and December, and three additional issues in February, April, and September by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. ing a conference call to Wall Stripe and the more sophisticat- ond-quarter guidance of 56 PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers Inc.: Street analysts. ed Legacy to heighten Coach’s cents, one cent above consensus S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and C.O.O.; Wall Street applauded Coach’s cachet with its top-tier custom- estimate of 55 cents, and pro- Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; David Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice Presi- results by driving shares up. Trad- ers. The company plans to drive jected that it will have full-year dent_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance Magazine ing volume Tuesday was heavy at growth in Japan via the opening earnings per share of $1.63 for Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. 14 million shares, which is more of new retail locations, hoping fi scal 2007, compared with the Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RT0001. Canada post return undeliverable than 4 times the stock’s average eventually to have at least 180 consensus estimate of $1.58. Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS of 3.2 million shares. During in- Coach stores in Japan and a mar- Jennifer Black, of Jennifer CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR traday trading, the stock hit a 52- ket share of 15 percent in a few Black & Associates, wrote in a DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four week high of $39.40, before clos- years from last year’s 9 percent. research note, “We remain ex- weeks is required for change of address. Please give both new and old address as printed on most recent label. ing at $39.21, up 7.93 percent. Elsewhere overseas, the com- tremely positive on this company. Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. On the conference call, Frank- pany during the quarter opened We feel Coach is particularly well First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, fort said direct-to-consumer fi ve new Coach stores, including positioned heading into the all and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To sales rose 29 percent to $404 mil- its fi rst each in Shenzhen, China important holiday season as well subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make lion from $315 million last year. and the United Arab Emirates. as the balance of 2007.” our subscriber list available to carefully screened companies that offer products and services that we believe would On a same-store basis, comps Frankfort said the company Black went on to say that she interest our readers. If you do not want to receive these offers and/or information by mail and/or e-mail, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. for U.S. stores rose 21.4 percent, plans to open at least 10 loca- continues to “fi nd the company’s WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANU- with retail stores up 16 percent tions in the major cities on the product fantastic, and believes SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPAR- and factory stores up 27.1 per- Mainland of China during the consumers will continue to be ENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED cent. In Japan, sales rose 21 next two years, while also ex- compelled to purchase Coach percent in constant currency, or panding its retail store base in as evidenced by sales of their 16 percent in dollars, driven by Hong Kong. $10,000 crocodile purses.” In Brief ● SORONA IN CHINA: DuPont has partnered with China’s Tom Ford Launches Web Site Zhangjiagang Glory Chemical Industry Co. to produce and dis- tribute the company’s Sorona stretch fiber throughout Asia. By Courtney Colavita any interest in returning to the Groundbreaking on a new facility in China to produce Sorona Tom Ford women’s clothing fray.
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