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From Primary to Neon — Enliven All Manner of Contemporary Accessories for Spring, from Bags and Shoes to Rope Bracelets

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From Primary to Neon — Enliven All Manner of Contemporary Accessories for Spring, from Bags and Shoes to Rope Bracelets DAILY EDITION NOVEMBER 20, 2018 1 Digital Sustainability Prada chairman Carlo Mazzi talks risk and reward. Page 4 The Luxe Side Fashion. Beauty. Business. Of Social A look inside Facebook’s luxury division. Pages 8 and 9 Going With Your Gut New York & Co.’s Gregory Scott on the brand’s transformation. Pages 6 and 7 Vivid colors — from primary to neon — enliven all manner of contemporary accessories for spring, from bags and shoes to elissa Stammer rope bracelets. For more on the M Kurt Lyle’s block-heel sandal, Orly Genger by Jaclyn trend, see pages 12 to 13. Mayer’s bracelet and PHOTOGRAPH BY COREY OLSEN Loeffler Randall’s box bag. rop Stylist: Stylist: rop P 2 NOVEMBER 20, 2018 BUSINESS BUSINESS Can John Mehas Save Victoria’s Secret? Urban ● The intimates giant women around grappled with numerous public errors in the globe.” judgment recently. Earlier this month, Outfitters announces a new ceo Still, shares of in a move that analysts called “tone and its latest earnings L Brands, parent deaf,” the annual fashion show returned amid a flurry of public company to to New York, complete with scantily- Charges On, relations nightmares. Victoria’s Secret, clad waifs gracing the runway. The same closed down 2.1 day, Ed Razek, chief marketing officer Doubles Down BY KELLIE ELL percent to $34.55 for L Brands, told Vogue magazine that on Monday and the brand didn’t have any interest in Victoria’s Secret is struggling to remain continued to plus-size or transsexual models. The With Tmall the intimates retailer of choice. fall more than 4 comments sparked a backlash and forced ● In an attempt to revive the brand, percent in after- John Mehas the company to apologize on Instagram. The company is taking the lingerie company has named John hours trading. Over the weekend, founder of rival its brands to Alibaba’s Mehas the new chief executive officer, During the intimates company ThirdLove Heidi Zak confirming an earlier report by WWD. third quarter, which ended Nov. 3, 2018, took out a full-page ad in The New York main platform following Mehas, who is replacing former lingerie Wexner said the company made “some Times, written as an open letter, criticizing its Singles’ Day success. exec Jan Singer, will begin the new gig in tough decisions” in an effort to improve Victoria’s Secret and Razek’s comments. BY EVAN CLARK early 2019. Singer resigned unexpectedly business. Those decisions include shutting “Your show may be a ‘fantasy,’ but we last week after just two years on the job. down Henri Bendel and exploring other live in reality,” Zak wrote. “Our reality is “The tailwinds continue to blow.” Mehas, a seasoned retail exec, served as options for its smaller intimates company, that women wear bras in real life as they So said Richard Hayne, chairman and president of Tory Burch for two years and La Senza. go to work, breastfeed their children, chief executive officer of Urban Outfitters was ceo and president of Club Monaco, a L Brands has been steadily play sports, care for ailing parents and Inc., who has been pointing to stronger Polo Ralph Lauren brand, before that. losing market share in recent years serve their country.…It’s time to stop consumer trends for at least 18 months and “John is an outstanding retail merchant as companies like American Eagle telling women what makes them sexy — reported Monday that his company posted and we could not be more excited for Outfitters’ aerie and Lively, brands that let us decide.” big third-quarter gains on the back of a him to lead Victoria’s Secret Lingerie to emphasize inclusivity, are growing in Before that, Victoria’s Secret eliminated “vigorous U.S. economy, record consumer a new phase of success,” Leslie Wexner, popularity. Company shares are down its swimwear category, a potentially confidence, ultra-low unemployment and chairman and ceo of L Brands, said in about 40 percent for the year. lucrative category for the brand. And then a changing fashion silhouette.” a statement Monday. “Our number- Comparable sales at Victoria’s Secret, there was the fan-favorite catalogue that The firm’s revenue rose 9 percent to one priority is improving performance both in-store and online, fell 2 percent disappeared around the same time. Amid $973.5 million for the three months ended at Victoria’s Secret Lingerie and Pink. during the quarter — on top of a 4 percent all this, the seemingly stubborn company Oct. 31 as comparable sales rose 8 percent In doing so, our leaders are coming in decline in the same period last year. Net has not closed a single Victoria’s Secret with double-digit e-commerce gains and with a fresh perspective and looking sales slipped 0.7 percent to $1.53 billion in store; a move that seems bizarre for even “positive” sales in its stores. All of the at everything…our marketing, brand the third quarter. the most successful brands as more and firm’s brands, channels and geographies positioning, internal talent, real estate Meanwhile, income in all of L Brands more retail shifts online. posted gains. By division, the firm’s portfolio and cost structure.…I am was only a third of last year’s figure at “This is a company that needs Anthropologie Group’s net sales rose 9.4 confident that, under John’s leadership, $103 million, compared with $319 million change,” said Ike Boruchow, a Wells percent to $385 million, Urban Outfitters Victoria’s Secret Lingerie, the world’s a year ago. In fact, all of the company’s Fargo analyst. “The investment gained 7.2 percent to $379.2 million leading lingerie brand, will continue to be growth comes from its Bath & Body community needs to see change. They and Free People advanced 12 percent to a powerhouse and will deliver products Works business. need to know that management isn’t $202.2 million. and experiences that resonate with In addition, the company has going to sit on its hands anymore.” That all led to a 71.9 percent increase in third-quarter income to $77.5 million, or 70 cents a diluted share. And Hayne told analysts on a BUSINESS product and mass merchandising — a point conference call that there was plenty that has been misrepresented in several more growth ahead in e-commerce, articles and posts....it was never about international markets, wholesale and Brett’s Severance Revealed; cheapening the core J. Crew brand, it was from the firm’s smaller concepts, such as about introducing Mercantile products garden concept Terrain. Makes His Case on LinkedIn that are accessible to a broader range of E-commerce remains the company’s customers.” largest opportunity, the ceo said, and ● J. Crew announced the for three years, grappling fashion misses, He also put in a plug for his record at already accounts for about 40 percent of exec’s departure on Saturday, pricing issues and management changes. West Elm, writing, “I always talk about the retail segment’s business. Not long ago, it restructured its debt to how happy it makes me to see that West And the business is taking a very after just over a year as ceo. make it more manageable. Elm has continued to grow and thrive after international flair. BY DAVID MOIN To offset difficulties at the J. Crew brand, I’ve left. That means that we built a solid “Singles’ day is the biggest one-day the corporation has been growing its foundation and a great team. Now, I was sales event in the world,” Hayne said. J. Crew Group successful denim-based Madewell division there for a very long time and obviously “And this year the Urban brand achieved is making chief and it recently started the Mercantile I was only at J. Crew for a year and a half. the number-one apparel brand on Tmall executive officer lower-priced division. Also, third-party But I think the team is great, the products Global. As you may know, global is Tmall’s Jim Brett’s brands are being added to the assortment. are looking great, and I only hope for smaller platform, for brands that don’t departure a little But sources told WWD that Brett’s continued success for the company. The carry inventory in the country. We’re less painful for the fall relaunch of the J. Crew brand lacked differences that led to my departure told Tmall Classic, their larger platform, executive. sufficient verve. There have also been existed between a very small group of generates approximately 10 times greater Brett is getting reports that Brett’s idea to start another people — and this happens all of the time customer demand than global. Thus, we a rich severance, brand wasn’t liked by the board. Tensions in corporate America. Just remember that plan to launch all three brands on Tmall including $1.25 between Brett and his new guard and the the soul of the company has never been Classic next year.” million over the old guard at J. Crew are also said to have about any individual — it comes from the But that doesn’t mean the retailer is Jim Brett next 18 months, been a factor in his departure, with board 10,000+ field and corporate associates that forgetting its roots. The firm plans to open which is an members worried about more defections come to work every day with the intention 10 to 20 new stores across all of its bands amount equal to what was his base salary; from the company.
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