The Inside: Top Retail PaychecksPg. 21 ARMANI NET UP 66%/3 ST. JOHN’S SPRING FETE/4 WWD WWDWomen’s Wear Daily • TheTHURSDAY Retailers’ Daily Newspaper • July 24, 2008 • $2.00 List Sportswear Blues Traveler A country girl needs little more than an easy top and faded jeans to hit a high note. The newly relaunched Earl Jean plays to her look with pitch-perfect high-waist cotton denim fl ares, seen here with Sass & Bide’s beaded cotton camisole and Patricia Underwood hat. For more, see pages 6 and 7.

A Sweatshop in Queens: New York Officials Raid Factory for Top Brands

By Ross Tucker

ERBRENTNY.COM; MAKEUP BY MISUZU MIYAKE USING MAKE UP FOREVER; STYLED BY KIM FRIDAY USING MAKE UP FOREVER; STYLED BY MISUZU MIYAKE MAKEUP BY ERBRENTNY.COM; NEW YORK — A handful of the industry’s largest brands and retailers on Wednesday became ensnared in a scandal of an alleged sweatshop factory in Queens that overworked and underpaid its workers. An investigation conducted by the New York State Department of Labor uncovered significant labor violations at two factories manufacturing garments for Macy’s, Gap, Banana Republic, Express, Victoria’s Secret, Limited and Coldwater Creek. Jin Shun Inc., a garment contractor operating out of Long Island City, in See Sweatshop, Page 20 PHOTO BY TALAYA CENTENO; MODEL: LYNDSAY CAROL/NEW YORK MODEL MANAGEMENT; HAIR BY JENNIFER BRENT USING KERASTASE PARIS AT JENNIF AT PARIS JENNIFER BRENT USING KERASTASE HAIR BY MODEL MANAGEMENT; CAROL/NEW YORK CENTENO; MODEL: LYNDSAY TALAYA PHOTO BY WWD.COM WWDTHURSDAY Sportswear

™ FASHION A hearty plaid shirt or some comfy thermals, peppered with denim A weekly update on consumer attitudes and behavior based that’s roughed up just right, hit the spot for the hillbilly girl. on ongoing research from Cotton Incorporated 6 GENERAL The New York State Labor Department uncovered major labor violations STAR LIGHT, STAR BRIGHT 1 at a factory making clothes for stores such as Macy’s and Gap. Never Underestimate the Power of Politicos and Celebrities Giorgio Armani SpA released its annual report, which revealed that net 3 profi ts rose 66.2 percent last year to $299.6 million. Celebrity style – from Hollywood’s A-list to mandates, dissecting the look and saying where to PPR’s second-quarter sales rose 4.5 percent to $7.77 billion, boosted Washington, D.C.’s elite – intrigues the average ‘buy it now’ via company websites,” Julian explains. 3 by an 8.8 percent gain in luxury and 6.3 percent growth at Puma. person enormously. And when the perfect style is “Any company today marketing a brand should have worn by the right person, it can be an enormously a Hollywood strategy beyond product giveaway DENIM: The spring collection of Dutch premium denim label Blue Blood, powerful marketing tool – for and incorporate it into the overall 8 founded by Steve te Pas in 2003, signals the brand’s return to form. designers and retailers alike. retail story, including consumer BEAT: Eve is launching her Fetish line for the fourth time this holiday Take Michelle Obama’s recent connections and point-of-sale.” 9 season, and this time the rapper-actress believes she has it right. appearance on The View, for Coldwater Creek is banking on LETTERS: Sunny skies and a laid-back lifestyle may seem more like a instance. The wife of presumptive the star wattage of Grammy-winning movie than reality in Los Angeles, where the economy is battered. Democratic presidential nominee country star Tricia Yearwood to 10 Barack Obama caused a media bolster its major fundraising effort, Classifi ed Advertisements...... 22-23 sensation when she wore a black- “Share Your Journey… For the and-white printed dress by Donna Cure,” a viral online campaign To e-mail reporters and editors at WWD, the address is fi rstname. Ricco on the show. Consumers benefiting the Susan G. Komen [email protected], using the individual’s name. immediately snapped up the cotton Breast Cancer Foundation. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT dress, and it sold out nationwide. “Trisha appeared on The Early ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. “My dresses are worn on TV Show on CBS on June 26 to talk VOLUME 196, NO. 17. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, October and December, two additional issues in March, April, May, June, August and quite often and photographed about our launch and the response November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of for newspapers and magazines was instant,” says Elizabeth Turley, Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided regularly,” Ricco says. “But the “Any company today marketing spokesperson, who adds that by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, a brand should have a Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/ magnitude of press that followed celebrity endorsements may boost Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Michelle’s appearance on The View Hollywood strategy beyond a store’s or label’s “cool factor,” but Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: product giveaways.” return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: was astounding. It’s been a very the real benefit is that a program or SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA exciting past few weeks for us.” — Tom Julian, brand is remembered more because 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE president, Tom Julian Group INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit That’s the power of the celebrity of the famous face attached to it. www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new endorsement. Among all women, While entertainers regularly subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production 61% cite fashion magazines, TV shows and celebrities set fashion trends, an election year can turn the correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other as their top sources for clothing ideas, according to candidates’ wives into fashion arbiters. Both Cindy Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list Cotton Incorporated’s Lifestyle Monitor™. McCain and Michelle Obama are appearing in classic 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 In addition to Michelle Obama, Ricco’s pieces looks that are well established inside the Beltway. 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, have been worn by Queen Latifah, Chelsea Handler, McCain has elected to approximate Nancy Reagan’s OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, Dayna Devin, Jann Carl and Allyson Hannigan. hallmark Chanel-style suits, while Obama seems BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR “It’s another opportunity to get the brand out,” the to be channeling Jackie Kennedy’s iconic look of CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR designer says. “When you have someone wearing A-line dresses and power pearls. In an arena where DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY your dresses that you respect and admire its exciting the absence of a flag pin causes a stir, these women are A SELF-ADDRESSED STAMPED ENVELOPE. not only for me but for my customers as well.” looking to avert fashion missteps. They are reflective The celebrity factor affects women of all ages, of an attitude at large: 73% of women don’t enjoy and the younger she is, the heavier the influence. pushing fashion to the limits, the Monitor reveals. Of Monitor respondents age 56 to 70, 34% say they On the other hand, compared with just 44% of In Brief pay attention to who’s wearing what on TV and in men, 64% of women who respond to the Monitor magazines. The majority (53%) of women age 35 to say they’re buying “new and different” when 55, and 67% of the 25-to-34-year-old set look to the buying new clothes. That’s why there’s a safety ● HURRICANE IMPACT: Hurricane Dolly lashed South Texas stars for guidance. The factor with celebrity Wednesday, forcing malls and stores to close. The Category 2 real sweet spot, though, endorsements: A “new storm, with winds of 100 mph, made landfall around noon in Sources of Clothing Ideas Among Women the resort community of South Padre Island and Brownsville, is young women age 13 and different” look is All 13-24 25-34 35-55 56-70 a city of 156,000. Among the shopping centers that closed was to 24, an astounding more easily acceptable Sunrise Mall in Brownsville, which has 100 stores anchored by 93% of whom turn to What you already if someone else has own and like 65% 66% 67% 62% 70% Bealls, Dillard’s, J.C. Penney and Sears. Sunrise Commons, with the media to cultivate tried it in public first. Marshalls, Kmart, Old Navy and Ross Dress for Less, also was their fashion savvy. Store display/ A big reason for the shuttered. In McAllen, a city of 117,000 northwest of Brownsville, window shopping 52% 53% 52% 52% 50% No wonder, then, loud buzz over Obama’s Simon Property Group closed La Plaza Mall and Palms Crossing that The New York In catalogs 39% 36% 32% 41% 49% dress was its attainable shopping centers. La Plaza is anchored by Macy’s, Dillard’s, price tag: $148. Penney’s, Sears and Joe Brand, an independent luxury store. Times recently ran an People you see 38% 56% 40% 33% 24% item on the back-to- regularly “Personal style has a Palms Crossing is a big-box center that opened last fall with school fashion influence strong currency when Bealls, DSW Shoes, Barnes & Noble and other stores. Fashion mags, TV, 61% 93% 67% 53% 34% of Gossip Girl. The CW celebrities people can relate to it network series features versus aspire to it,” Julian ● LAMY MAKES MAJOR MOVE: World Trade Organization di- Family members 28% 31% 30% 29% 18% rector general Pascal Lamy on Wednesday put forward his own Manhattan private Commercials & ads 26% 31% 24% 24% 24% says. “The high/low opportunity continues proposals in closed-door talks with trade ministers from seven school students who’ve trading powers on how to lower barriers to trade in agriculture Salespeople 8% 12% 7% 7% 5% elevated prep chic to in stores to appeal to many and industrial tariffs, in a bid to break the deadlock and avert new levels. In turn, teens consumers and Michelle Other 1% 1% 1% 0% 1% another collapse of the Doha Round of trade talks. Lamy took and 20-somethings are Obama’s approachable the step after talks under his chairmanship between the U.S., ravenous for the same White House/Black the European Union, India, Brazil, China, Japan and Australia outfits. The show’s website lists items worn by each Market dress was almost like when Sharon Stone wore failed to trigger the expected counteroffers to a U.S. proposal character, and provides links for viewers who want to the Gap cotton T-shirt with a Valentino skirt and an on Tuesday to cap its farm subsidies at $15 billion. The minis- buy the pieces immediately. Armani dress as a coat to the Oscars in 1996.” ters were meeting into the night to discuss Lamy’s proposals. The Internet has made it easy to transition from And for a retailer or designer, that kind of Lamy in the past has declined to resort to this sort of tactic, obtaining information about an item, to buying it. memorable moment is treasured as much as any which he has called “the nuclear option.” And that’s reflected in Monitor stats that show 70% of awards show statue. ● SWISS WATCH SALES UP: Sales of Swiss watches contin- women browsed the Internet for clothes in 2008, an This story is one in a series of articles based on find- increase from 5% in 1997. ued to be strong in June, with the Federation of the Swiss ings from Cotton Incorporated’s Lifestyle Monitor™ Tom Julian, president of his own brand consultancy Watch Industry on Tuesday reporting that exports of watches tracking research. Appearing Thursdays in these advanced 13.4 percent to 1.6 billion Swiss francs, or $1.65 bil- firm, Tom Julian Group, and a fashion and style lion, despite modest growth in the U.S. and Japan. Exports of expert for Oscar.com since 1996 for the 68th annual pages, each story will focus on a specific topic as it relates to the American consumer and her attitudes watches to Hong Kong gained 20 percent; to Germany, 25 per- Academy Awards, says the Internet’s growth reflects a cent, and to France, nearly 15 percent. Exports to the U.S. consumer appetite that has become constant. and behavior regarding clothing, advanced 1 percent, while shipments to Japan increased 3.5 “The online communities take celeb street shots appearance, fashion, fiber selection and percent. For the fi rst half of the year, exports of Swiss watches and turn them into trend alerts and purchasing many other timely, relevant subjects. have grown 15 percent to 8.3 million Swiss francs, or $8.59 bil- lion, the federation said. WWD, THURSDAY, JULY 24, 2008 3 WWD.COM PPR Sales Up 4.5% in Quarter Giorgio Armani Net Balloons By Robert Murphy Yves Saint Laurent’s Muse II By Luisa Zargani East grew 15.6 percent overall and 24.2 and Besace bags. percent in China and Hong Kong. Sales PARIS — Improved sales at Gucci and MILAN — Giorgio Armani keeps building in North America grew 7.3 percent to Puma helped lift PPR to better-than- his fortune — and that of the company he 556.1 million euros, or $761.8 million. For expected second-quarter sales. founded 33 years ago. 2008, Armani said his “new challenge Sales in the three months through Giorgio Armani SpA on Wednesday re- is India.” Giorgio Armani and Emporio June 30 improved 4.5 percent to 4.97 leased its annual report, which revealed net Armani boutiques are slated to open in billion euros, or $7.77 billion, from profi ts rose 66.2 percent last year to 218.7 New Delhi sometime this summer. 4.47 billion euros, or $6.99 billion, million euros, or $299.6 million, compared Last year, investments in property, in the year-ago period, headlined with 131.7 million euros, or $164.6 million, equipment and intangible assets amount- by 8.8 percent growth in luxury the previous year. Dollar fi gures were con- ed to 94.7 million euros, or $129.7 million, and 6.3 percent growth at Puma. verted from the euro at average exchange including 62.9 million euros, or $86.1 mil- Currency conversions were rates for the period to which they refer. lion, mainly to open and refurbish directly made at average exchange rates And the company, of which Armani is owned stores. Forty-nine stores, of which 14 for the respective periods. sole owner, is giving the designer a nice are directly owned, opened in 2007 and as The numbers, released after reward for the performance: The report many are expected to open in 2008 in both the market closed here, slightly disclosed the fi rm’s investments last year emerging and consolidated markets. In par- bested analysts’ expectations. included 13.4 million euros, or $18.3 mil- ticular, the report stated that the company PPR’s stock closed up 5.25 per- lion, by its subsidiary GA Yachting Srl in invested 27.6 million euros, or $37.8 million, cent to 66.60 euros, or $103.71. The sales fewer Japanese and American tourists in the construction of a new 213-foot yacht in its 65,000-square-foot Ginza Tower megas- results also signaled health in a chaotic Europe affected sales on the Continent, for Armani, named Main. In 2006, an ini- tore in Tokyo, which opened last November. economy among Europe’s key luxury despite more Russian visitors. tial fi gure of 11.5 million euros, or $15.7 This is Armani’s fourth multibrand concept players after strong numbers released Palus said Gucci’s business in Japan million, was spent on the yacht, which store. A fi fth, on New York’s Fifth Avenue, is earlier this month by Hermès, Burberry remained “challenging.” Overall luxury launched earlier this year. slated to open in early 2009. and Compagnie Financière Richemont. sales in Japan “slightly declined” in the The company had released operating The Giorgio Armani boutique on Avenue Overall luxury sales grew 16 percent quarter, he said. Palus called the econom- profi ts and sales in April, but not net in- Montaigne in Paris was a 2.8 million euro before the impact of currency exchange ic climate “turbulent” and said the dete- come. Consolidated sales in 2007 reached ($3.8 million) investment, followed by the rates, led by high double-digit growth in riorating value of the dollar against the 1.6 billion euros, or $2.19 billion, up 8.3 Giorgio Armani boutique in Dallas, which “booming” emerging markets, particu- euro had a greater-than-expected impact percent compared with 2006. At constant cost 2.1 million euros ($2.8 million) and the larly Asia, outside of Japan. Luxury sales on total sales. exchange rate, sales would have grown Emporio Armani store in Boston, a 2 mil- in China alone rocketed 83 percent, PPR Mature markets faced the “twin head- 11.9 percent. The company attributed lion euro ($2.7 million) investment. said, while sales of luxury in Europe winds” of a tough economic climate and the results achieved to the group’s brand grew 14 percent and improved 10 percent adverse currency exchange rates, but, he diversification; double-digit increases in the U.S. Sales at the Gucci brand im- said, “emerging markets continue to ben- in categories spanning from apparel to proved 3.8 percent to 504.7 million euros, efi t from a favorable dynamic.” watches and jewelry, eyewear, fragranc- or $789.01 million, reversing the negative Palus said current trading was “very es, cosmetics, skin care and its home line; trend of the fi rst quarter when sales fell good” and “that [PPR] has the same mo- growth in mature and emerging markets, 3.3 percent. Before the impact of curren- mentum in luxury” so far in July. and to its global retail expansion. cy exchange rates, Gucci’s sales in the Bottega Veneta continued its strong In his opening letter in the report, the quarter grew 11 percent, PPR said. performance, reporting that sales in- designer said he was “particularly proud” Jean-François Palus, PPR deputy chief creased 13.6 percent to 91.2 million of the group’s performance in 2007. “The executive offi cer and chief fi nancial offi - euros, or $142.5 million, with sales in company is in great shape from a fi nancial cer, said on a conference call that Gucci Asia, excluding Japan, growing 56 per- perspective with both revenues and prof- sales “signifi cantly accelerated” in the cent. Bottega sales growth slowed to sin- itability constantly on the rise, refl ecting second quarter after tough business early gle digits in Japan. the success of our strategic decisions of this year. “The second quarter showed At Yves Saint Laurent, sales gained recent years and a consistent period of ex- a real improvement in Europe and the 25.4 percent to 57.1 million euros, or traordinary creative energy,” said Armani, U.S.,” said Palus. The most spectacular $89.3 million, bolstered by emerging who also serves as the company’s chair- growth, however, was delivered by emerg- markets. Sales at the so-called other man and managing director. ing markets, with sales in Asia, excluding brands — Balenciaga, Boucheron, Stella The 74-year-old designer, who was on Japan, improving 40 percent and sales in McCartney and Alexander McQueen — vacation and not available for further the Middle East growing 60 percent. improved 23.9 percent to 107.9 million comment, recently told WWD that he Palus said Gucci sales improved by euros, or $168.7 million. did not feel rushed to decide anything “high-single digits” in the continen- Puma sales grew 6.3 percent, fueled regarding the fate of his company, also Armani invested $37.8 million in its Ginza tal U.S., but were dampened by fewer by double-digit growth in apparel and banking on “more than suffi cient liquid- Tower megastore in Tokyo. Japanese tourists in Hawaii. He said accessories. ity” to fund its expansion independently. Indeed, the report said the company can Among upcoming new stores: in China, count on a cash pile of 373 million euros, three Giorgio Armani boutiques in Beijing, or $511 million, up from 109.7 million, or Dalian and Shenyang; two Emporio $137.1 million, at the end of 2006. Armani stores in Beijing and Shenyang, Halston Stages Global Offensive In his introductory letter, Armani ap- and an Emporio Armani Café in Beijing. peared to put questions about the future to Last January, the company started refur- By Marc Karimzadeh fall, resulting in an 800-square-foot rest, underscoring the relevance of change, bishing the former Collezioni boutique on Halston shop, which opened in June. vitality and innovation in the success of his Milan’s Via Montenapoleone, which will be NEW YORK — It may be without a de- “It’s the launch of the brand within company. “The creative energy is what sat- turned into a new Giorgio Armani fl agship signer, but Halston is moving full speed Harrods, and the accessories shop just isfi es me the most today. My 30 years of his- covering 14,040 square feet. The store is ahead, with new in-store environments happens to open fi rst, because we had tory at Armani undoubtedly represent an expected to open in the fall. The company at Harrods, exclusive Hong Kong dis- a one-season deal with Selfridges,” ex- extraordinary wealth of experience, but now counts 471 stores worldwide, of which tribution through Lane Crawford and a plained Bonnie Takhar, president and our enthusiasm and our sheer energy and 158 are directly owned. retrospective to be unveiled at Neiman chief executive offi cer of Halston, add- commitment remain those of a very young The company registered growth across Marcus in San Francisco in October. ing the rtw shop that opens at Harrods company, capable of renewing and chal- all product categories. Clothing sales, Despite recent news of creative di- will double-expose some of the Halston lenging itself day by day,” wrote Armani. which include shoes, bags and small leath- rector Marco Zanini’s departure, the de- accessories and shoes. The designer pointed to the brand’s er goods, totaled 1.29 billion euros, or $1.76 velopments could be seen as a signal of Takhar said more in-store boutiques product diversifi cation, which has been billion, up 12 percent compared with 2006. the continued commitment of its owners, are in the pipeline, though she wouldn’t a “source of growth…and not a hindrance This category accounted for 55 percent The Weinstein Co. and Hilco Consumer disclose specifi cs. “We are planning to to, or burden on, other activities.” of total wholesale revenues. Sales of per- Capital LLC, to revive the iconic label. open one in Dubai and in Russia,” she In addition to double-digit growth in li- fumes and cosmetics grew 13.4 percent, ac- Tonight, Halston is celebrating a new said, adding that the plan is to open censed products, such as watches and fra- counting for 29 percent of total wholesale partnership with Lane Crawford, which more such environments in the future. grances, Armani pointed to the develop- sales. Eyewear sales rose 18.8 percent and launched the collection in Asia in an ex- The fall relaunch season, designed ment of the Casa line and the “new areas watches and jewelry 19.9 percent. clusive for the fall season. Guests at the by Zanini, is being sold worldwide at of activity” connected to this division. In Last year, the group initiated a “radi- cocktail reception at Lane Crawford will 70 distribution points in 20 countries. 2007, the home line reported a 133 per- cal reorganization of the manufacturing see an extensive display of the Zanini- In the U.S., the fall season of cent hike, driven by the designer’s new companies, to encourage a more modern designed collection in the Hong Kong Halston is being sold at four Neiman furnishings projects. The fi rst phase of 144 and integrated industrial structure that store’s main atrium. Marcus doors, in addition to several apartments in Dubai’s Burj Dubai devel- meets the requirements of product and On Friday, meanwhile, Halston will specialty stores including Ikram in opment, under an agreement with Emaar feature differentiation.” For example, arrive at Harrods in London with a Chicago and Jeffrey New York. To cel- Properties, “sold out in a few hours,” said Armani took control of the residual 20 300-square-foot accessories shop-in-shop ebrate the new direction, Halston has Armani. The fi rst Armani Hotel will open percent shares in production company on the main-fl oor Room of Luxury de- worked with Stéphane Houy-Towner, in Dubai in 2009, followed by Milan in Dei Mutti Srl in December. Such projects partment. The shop, which is operated a research associate at The Costume 2010. The fi rst Armani Resort will open in will take up most of 2008. by Harrods, is located near the likes of Institute at The Metropolitan Museum Marrakech, Morocco, and other hotels are Despite bleak macroeconomic fore- Bottega Veneta, Marc Jacobs and Chloé. of Art, to put together a small retro- slated to open in New York, Shanghai and casts, Armani said he was “looking ahead Harrods also plans to add a full spective of the brand, which will be London, according to the report. with confidence,” given the company’s ready-to-wear shop in its International unveiled at Neiman Marcus in San In 2007, wholesale revenues grew 14.4 order backlog for fall. “Beyond that, we are Designers Room department next Francisco on Oct. 16. That same day, a percent to 2.36 billion euros, or $3.23 already working on our strategies for 2009 spring. Halston had an exclusive part- private luncheon and evening cocktail billion. In Europe, wholesale revenues and 2010, always aiming to improve. This nership with Selfridges in London for reception will take place at the store. rose by 18.6 percent, accounting for 37 is the secret of our group’s success. This is percent of total volume. Sales in the Far our constant goal,” said the designer. 4 WWD, THURSDAY, JULY 24, 2008 WWD.COM

Fashion Scoops

COMING TO AMERICA: Those who didn’t make it to Hong Kong or Tokyo recently should be pleased to hear that Chanel’s traveling “Mobile Art” exhibition is headed Stateside this fall. From Oct. 20 to Nov. 9, the Zaha Hadid-designed collapsible, futuristic pavilion will be set up on Central Park’s Rumsey Playfi eld. The entire project — both structure and inside exhibit — is inspired by Chanel’s iconic quilted handbag. “Mobile Art” was offi cially unveiled in Hong Kong in March, and is set to travel to cities like London, Moscow and Paris. The mix of artists evolves with each city. In Hong Kong, for instance, the exhibit featured works by 20 contemporary artists, including David Levinthal, Yoko Ono, Wim Delvoye and Nobuyoshi Araki.

PRADA IN THE HEART OF SAN FRANCISCO: “This is a fantastic turnout for the middle of summer,” marveled a very pregnant Vanessa Getty as she propped herself up on the perfume counter at Prada’s new San Francisco fl agship Tuesday night. Getty and roughly 700 other city swells packed the store for its opening night bash, nibbling on an array of hors d’oeuvres by French Laundry’s Thomas Keller. Architect Abigal

Turin was marveling at the DREW ALTIZER PHOTO BY store’s chic, sleek interior. Vanessa Getty “It’s signature Prada, with touches of the original Milan Galleria store, but it feels very California,” she noted. “Spectacular,” said plastic surgeon Brunno Ristow. Also nibbling on foie gras mousse and smoked duck canapés were O.J. Shansby, Kate Harbin, Leigh Matthes, Marissa Mayer, Lexie Fisher, Yurie Pascarella, Juliette de Baubigny, Emily Martin, Cecilia Harris and Alyson Jackson. St. John Springs Ahead BRITISH NOSTALGIA: A British invasion descended upon New York Tuesday night for the Victorinox-sponsored Cinema Society By Marcy Medina screening of “Brideshead Revisited.” In place of Hamptons- exiled Manhattanites, a slew of dapper gentlemen types took COSTA MESA, Calif. — There was something for everyone when St. in the fi lm incarnation of Evelyn Waugh’s classic novel, before John presented its spring 2009 runway show Tuesday at the Orange heading to the Gramercy Rooftop to help co-stars Hayley Atwell County Performing Arts Center here. and Matthew Goode celebrate. Indeed, Goode probably needed The fi rst collection under new executive vice president of design a drink to recover from watching himself on screen — for the George Sharp was intended to appeal to the 45-year-old company’s second time. “It’s hateful,” said the actor, who sat through the fan base — both mature and younger women — and ranged from movie with his girlfriend, Sophie Dymoke, at his side. “It gets colorful silk paisley jumpsuits to sparkly evening gowns to classic longer and longer each time.” He and Atwell had prepped for navy suits. the movie by staying at co-star Emma Thompson’s house. “She “People are ready for change and it’s tough out there,” said chief was so maternal. She cooked us huge lunches,” said Atwell, executive offi cer Glenn McMahon. “Everyone wants something new who had her proud pop in tow for the premiere. Meanwhile, the and exciting, they don’t need anything else in their closet. They need sumptuous fi lm scenes, featuring Castle Howard as the fi ctional a reason to buy, so we really worked hard on innovation and color.” Brideshead, had viewers longing for the Yorkshire dales. “I The show, attended by about 400 loyal customers, opened with thought I was back in England,” said recent Brit-transplant Mary classic black and navy suits, palazzo pants and day dresses, followed Charteris. “I forgot where I was.” by similar silhouettes in nearly Day-Glo brights. Knit dresses fea- tured either intricate new textures that mimicked the look of lace or MAD FOR MICHAEL: The man ruching on solid colors, as well as allover patterns such as paisley. may make the clothes, but the St. John co-founder Marie Gray, who is now serving as a cre- clothes make the show in the ative consultant, said, “The new featherweight knits and innovative case of AMC’s “Mad Men.” stitching” are enticing. No one knows that better “They can do anything at St. John,” said Sharp, a former vice pres- than Michael Kors, whose fall ident of design at Ellen Tracy who was hired in January. “As a design- collection was infl uenced by the er, it’s a real joy to hand them something and see it get made. For me hit series, and so on Tuesday personally, working with all the technicians and knits was a thrill.” night, the designer hosted a Marie Gray and her daughter Kelly Gray, the former St. John screening of the season two creative director who also has rejoined the $400 million company premiere at the Bryant Park as a creative consultant and stayed backstage prepping the show, Hotel. “Mad Men” star Jon seemed content to let the new executive team get most of the credit. Hamm, who plays the debonair At the end of the presentation, Sharp took a solo walk down the run- but reticent Don Draper on the way, bowing to Marie Gray, who sat in the front row. In years past, series, stayed in character in the Grays, along with the executive design team, all took the stage. a sharp Giorgio Armani suit, “George did all the hard work, so he deserves the round of ap- while sipping vodka on the plause, and Glenn is the driving force,” Marie Gray said. rocks. “I’m a little less formal

The new team appears to have found balance, paying homage than this usually, but I do like JIMI CELESTE PHOTO BY to classic St. John signature details such as the rhinestone button, nice clothes. Life’s too short,” Michael Kors and Jon Hamm while moving the collection in a youthful, yet subtle direction. said the Golden Globe winner. For example, Sharp took the crystals and amped them up to cre- Kors’ affection for the show’s style stems from his nostalgia ate jeweled necklines on cardigans and gowns. There also were for his childhood. He remembered his mom wearing skinny fresh details like an organza dress ruched and gathered to resem- pants and sweater sets everywhere she went. “My mother was ble a fl ower blossom, and chiffon cherry blossom appliqués on the defi nitely a little January Jones [who plays Betty Draper] in neckline of a solid white suit that echoed the chiffon print blouse her sportier moments,” he said. worn underneath. Also new for the house were printed full-length chiffon gowns that embodied a “light and airy” feel that Marie Gray DENIM DESTINATION: Rag & Bone’s Marcus Wainwright and cited as inspiration. David Neville are throwing their cult following a retail bone. “Taking some of the knits and making them look like prints was The designers, who launched the line as a men’s denim a clever touch,” Sharp said. “We wanted to take the best of St. John collection in 2001 and have since expanded into tailored and mix it with the new so we can dress this lady from day to eve- women’s sportswear, recently signed the lease for their fi rst ning to weekend.” store. Come September, fans, who include Sienna Miller, McMahon said the collection, along with a soon-to-be unveiled Julianne Moore and Gisele Bündchen, can shop their men’s and store design, as well as a revamped advertising campaign and men’s wear-inspired women’s collection at 104 Christopher Web site, were ushering in a new era at St. John. “We continue to Street in New York’s West Village.

evolve,” he said. TYLER BOYE PHOTOS BY Is keeping track of your inventory keeping you from your business?

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WalkThe undone country girl has herthe own charm. A hearty plaidLine shirt or some comfy thermals, peppered with denim that’s roughed up just right, hit the hillbilly spot. — Kim Friday

Unionbay’s cotton denim vest with Dessous Sophie Simmons’ cotton briefs. Oliver Peoples sunglasses; Esprit socks; footwear throughout by What Comes Around Goes Around. WWD, THURSDAY, JULY 24, 2008 7 WWD.COM

Prps’ red fox vest We Are Replay’s cotton and Hanky Panky’s blouse, Loomstate’s organic cotton bralette cotton thermal pants. On the paired with Calvin clothesline: Free Country’s Klein’s cotton boxer cotton thermal top and shorts and See Thru Ksubi’s cotton dress. Soul’s cotton and Right: Current/Elliott’s cotton spandex jeans. denim vest and shorts with MiH Jeans’ cotton blouse. Danskin hosiery. On him: Uniqlo’s cotton shirt and Replay’s cotton denim jeans.

Mavi’s cotton dress worn with True Religion’s cotton denim shirt. On him: Replay’s cotton shirt and Grey Ant’s cotton thermal pants. Mosley Tribe sunglasses.

PHOTOS BY TALAYA CENTENO; MODELS: ALEX AVEDON/LEVEL 1 MODEL MANAGEMENT; LYNDSAY CAROL/NEW YORK MODEL MANAGEMENT; HAIR BY JENNIFER BRENT USING KERASTASE PARIS AT JENNIFERBRENTNY.COM; MAKEUP BY MISUZU MIYAKE USING MAKE UP FOR EVER; FASHION ASSISTANT: DANA COVIT 8 WWD, THURSDAY, JULY 24, 2008 WWD.COM Denim Report Retooled Blue Blood Sprouts for Spring

By Ross Tucker Looks from Blue he spring collection of Dutch premium denim label Blood’s spring TBlue Blood signals the brand’s return to its roots — collection feature and Steve te Pas ought to know. cleaned-up He founded the Amsterdam-based label in 2003 and denim and more Blue Blood quickly established itself in the European tailored styling. market. The success attracted the attention of Italian casualwear company Jam Session Group, owner of the popular European brand Guru. In 2005, Jam Session purchased a 53 percent stake in Blue Blood for an undis- closed price. The deal included a provision that allowed Jam Session to increase its stake to 85 percent by 2008. At the time, Blue Blood was generating annual sales of about 7 million euros, or $11.1 million at current ex- change. Jam Session’s management wanted to double rev- enues within a year by expanding Blue Blood’s distribu- tion in southern Europe, including Spain and Italy, and by opening as many as six Blue Blood-branded stores. “We want to take what is now an underground label and make it something more visible, while at the same time keeping the integrity and identity of the brand,” Jason Denham, then creative director of Blue Blood, told WWD. But the relationship between Jam Sessions and Blue Blood soured. Te Pas felt the brand Steve te Pas was being taken in the wrong di- rection and in 2007, after a year and a half of effort, he bought back control of the company. “At the end of 2007, I got the brand back and cleared my mind,” te Pas said. “I looked at everything analytically and made some drastic changes.” A major overhaul took place, which included changing the en- has repositioned Blue Blood to target a has cut to around 600. He believes that with a retooled tire design team. And te Pas put market niche he calls “new luxury” that collection he’ll be able to expand to 1,000. himself back in the role of cre- includes brands like G-Star and Diesel on Amsterdam is already home to two Blue Blood- ative director. Mark Wiesmayr, one end and luxury labels such as Louis branded stores and will soon be joined by a store entire- the ex-chief executive offi cer of Vuitton on the other. ly devoted to premium denim. Love for Denim is set to Ksubi, former denim director at The new design team has been ex- open during Amsterdam International Fashion Week on Sass & Bide and senior designer at Levi Strauss & Co., panding Blue Blood’s offerings beyond its traditional Saturday and will feature the brand’s premium denim was hired as the brand’s denim designer in February. To jeans and T-shirts. The spring collection will see the along with limited edition series of selvedge jeans from enhance the line’s fashion offerings and its Avelon de- introduction of more tailored pieces, knitwear, acces- other labels. signer label, te Pas brought in former Viktor & Rolf head sories, wallets and bags. Women’s denim offerings have Te Pas said the focus initially will be on opening stores designer Erik Frenken. been pared down and cleaned up with a focus on four- in Europe, followed by locations in New York, Los Angeles “The brand turned out to be too English,” te Pas said. and fi ve-pocket styles. The line offers skinny, boot-cut, and Miami. He’s had meetings about opening stores in “Jeans, for example, had more pockets and zips. There fl are and boyfriend-cut styles, all named after actresses Spain and also is considering a move into Russia. were a lot of reasons not to buy the product. It was just and made from Japanese and Italian fabrics. Retail pric- “Especially in diffi cult times, you have to show what too fl at English bloke-ie looking and that’s not what I es range from 120 euros to 450 euros, or $189 to $711. you can do,” he said. “In Europe, if you’re doing 50 per- stand for.” Expanding distribution and opening company-owned cent less than last year, you’re doing pretty well. But we’re Instead of “streetwear English,” te Pas wanted Blue signature stores is another priority for spring. At its doing 30 percent more than last year, so that’s a good sign. Blood to represent “royal and aristocrat.” He believes he height, Blue Blood was sold in 800 doors, which te Pas We’re a new brand, so the only way for us is up.” Topshop Bulks Up With Premium Program By Nina Jones LONDON — Topshop is banking on its customers’ con- tinuing appetite for denim this fall. To complement its existing denim collection, called Moto, the British retailer will launch a premium denim area at its Oxford Circus fl agship here in September. That space will carry denim collections from Sass & Bide, Joe’s Jeans, Dittos, My Lovely Jean, J Brand and Radcliffe. A premium “People invest in denim,” said Antonia O’Malley, as- area will sistant buyer for concessions at Topshop, adding she launchlaunch atat thethe imagined that customers would “mix up [the denim col- Oxford Circus lections] with Topshop pieces.” fl agship in The premium denim area will sit in front of September. Dittos has Topshop’s Boutique area that sells the retailer’s higher- SCOTT BARBOUR/GETTYPHOTO BY IMAGES created end Unique line and its collections by designers such as the Johnny Christopher Kane and Marios Schwab. Designers with Web site, topshop.com. O’Malley declined to give sales Boy, a collections in the Boutique area for fall include Louise predictions for the exclusive collections. superskinny Goldin, Markus Lupfer and Todd Lynn. To complete the premium denim experience, the style, While the premium denim collections will retail at Oxford Circus store will conduct a weeklong denim clinic exclusively a signifi cantly higher price point than Topshop’s own beginning Sept. 8, where Radcliffe designer Suzy Radcliffe for Topshop. denim lines — Moto jeans start at 30 pounds, or about will advise customers on fi ts and styles. There will also be $59 at current exchange, while a pair of Radcliffe jeans an alteration service, to which customers can bring their will retail in the store for 150 pounds, or $300 — the re- own jeans by any brand to be tailored to their shape. leg and tapered ankle. Alongside denim jeans, Topshop tailer will bridge that gap with its own denim range cre- Meanwhile, Topshop is ramping up its own denim has produced denim playsuits and jumpsuits for fall. ated in collaboration with premium denim designers. lines for fall. Its fall Moto collection includes skinny fi t “We always offer good basics…but it’s not just about Both Sass & Bide and J Brand will design capsule jeans in washed-out blue, skinny jeans covered with a the basic blue jean,” said Davies. collections for Topshop to bow in August and November, muted gray leopard print pattern, drainpipe leather-look She added that plenty of customers had been drawn respectively. Dittos will also produce a jeans style for jeans and slouchy boyfriend fi t jeans in an indigo wash. to the sequined jeans Topshop has produced in the past the store. Those collections will retail from around 75 “When we introduce a new fi t, our customers are and will carry during the holiday season. While Davies pounds to 105 pounds, or $149 to $209, and will be sold quite early to adopt it,” said Julia Davies, the retailer’s declined to comment on denim sales at the store, she said at the Oxford Circus store and at Topshop’s New York buyer for jeans. the category is “a signifi cant part of Topshop’s business,” fl agship on Broadway, set to open in October. They will Davies said a key look for Topshop for fall is Moto’s and that there was likely to be an area devoted to denim also be sold at selected U.K. stores and on the retailer’s Pippa cut, a higher-rise skinny style with a drainpipe at the company’s 40,000-square-foot Broadway store. WWD, THURSDAY, JULY 24, 2008 9 WWD.COM The Beat Is Fourth Time a Charm for Fetish?

By Julee Kaplan “With the Fetish collection we wanted to and subtle logos located on the interior put together a stronger retail strategy and waistband, rather then on the outside ve’s motto when it comes to fashion appears to be with the reluctance of shoppers and the back pocket. There are fi tted graphic Etry, try, try, try again. weakened economy, decided that fall T-shirts, tunics with sequin details The rapper-actress is launching her Fetish line for 2008 would be a better time for the (one with an oversize paw print on the fourth time this holiday season (with a soft launch launch,” said Chris Laurita, presi- the front, clearly inspired by Eve’s hitting a select few stores now), and this time she — of dent of Signature Apparel. “The fall signature tattoos), fi tted jackets, course — believes she has it right. Born Eve Jeffers, but 2008 collection will be more focused jersey dresses with beading de- known only as Eve, she fi rst added the designer title to on branding, better product and a tails and a series of sexy tops, her résumé back in 2003 when Fetish hit the junior mar- more strategic pricing strategy.” made to go with jeans. ket. After a rough ride in business, she introduced the Eve recalled the holiday 2007 Eve, who is currently in collection with the Los Angeles-based Innovo Group, line: “We wanted to make sure Michigan filming the movie, where she experienced production and delivery prob- the line was cohesive and it just Eve “Whip It,” with Drew Barrymore lems. Then, Eve switched partners and went with Marc wasn’t. It’s not that I didn’t like (who is also directing), couldn’t Ecko Enterprises in 2004. Shortly after Eve entered the what we had, but we weren’t happy be happier. partnership with Ecko, the brand was shelved, with with it overall. To be honest, a lot of it “Arnold is so good,” she said. “His promises to relaunch later. looked rushed, because it was rushed. attention to detail is amazing, he is Later never came with Ecko, but in February 2007 We wanted to get back out there since the teaching me so much, and he brings this Eve signed with the New York-based Signature Apparel brand had already been away for so long.” fresh energy to Fetish.” Group, where the brand remains. Under Signature, the Today, Eve insisted, it’s a whole different Fetish brand relaunched as a young contemporary label, story. To help boost Fetish from a design standpoint, with a collection of leather jackets, cotton T-shirts, jeans Signature hired Arnold Williams as design director. The I knew of the brand and I felt and dresses, ready for a holiday 2007 introduction at re- London native has a seasoned history in design, hav- “ tail. Again, the collection never took off. ing worked at Versace before moving onto LVMH Moët that it really had legs, it just Hennessy Louis Vuitton, where he worked at Loewe, designing alongside Narciso needed to be reawakened. Rodriguez. Williams left Loewe to start ” his own line, which he closed in order to — Arnold Williams, Fetish work at John Varvatos. Then, he said, he heard about Fetish. The line, which wholesales between $12 for a T-shirt “I knew of the brand and I felt that it re- and $178 for a leather jacket, has already been picked up ally had legs, it just needed to be reawak- by Macy’s, Up Against the Wall, Against All Odds and Jimmy ened,” Williams said. “I got in touch with Jazz. It will also be available on thefetishcollection.com. Signature and told them how I thought it Eve and Laurita declined comment on fi rst-year sales could be taken to the next level.” expectations for the relaunch, but sources close to the Williams said that he was eager to take company said the brand should bring in about $10 mil- his experience in high-end fashion design lion in wholesale volume in its fi rst year at retail. and apply it to a young contemporary brand. Eve was far from the fi rst celebrity to become a de- He started working with the company ear- signer, and there are increasing signs the market for lier this year and began planning for a holi- celebrity apparel might be both oversaturated and day 2008 relaunch of Fetish. stagnating given the weak economy. Eve is joining a “The infrastructure is there, we just slew of stars who have had mixed success in the fash- needed to fi nd what we stand for in the ion game by launching their own collections. Jennifer market and create something for people Lopez, Beyoncé Knowles, Jay-Z, Sean “Diddy” Combs to rely on,” he stressed. “We needed to and Gwen Stefani were among the fi rst, but today, the have a bread-and-butter part of the line, list of celebrity designers has grown to include Mary- we needed to own that jeans and T-shirt Kate and Ashley Olsen, Justin Timberlake, LL Cool J, area, and our pieces had to be identifi able Kristin Davis, Jessica Simpson, Pamela Anderson, Jaime so that when the logo is removed, people Pressly, Hilary Duff, Sarah Jessica Parker, Amanda Looks from Fetish will know it’s Fetish.” Bynes, Mandy Moore, Victoria Beckham, Sheryl Crow, for holiday. The collection now includes a full Sienna Miller, Kate Moss, Lauren Conrad, Heidi Montag array of jeans with cleaned-up washes and Kim Kardashian. FETISH PHOTOS BY ROBERT MITRA; EVE BY JEFFREY MAYER/WIREIMAGE EVE BY MITRA; ROBERT FETISH PHOTOS BY Kammann Adds Fresh Twist to Karoo Nanette Lepore’s Romantic Side ngelika Kammann has joined Karoo as designer, replacing Mark Eisen, fter 16 years in business, Nanette Lepore is ready to get her name out there. Awho had designed the contemporary knitwear line since its 2005 launch. A This fall the contemporary designer will launch her fi rst ad campaign on three plat- The decision to split with Eisen was made because he is in South Africa, forms — print, outdoor and online. which became a hindrance to the design process for New York-based Karoo. “We just thought that this would be a great time to get the image of the brand out there and Eisen also designs Wal-Mart Stores Inc.’s higher-priced George collection. give people a sense of what we are all about,” Lepore said. “We realized that in order to expand, we needed to be able to work to- The designer hired Poppy de Villeneuve to shoot and art direct the campaign after seeing gether in the same space,” said Anne Seeler, vice president of Karoo. “The her work in a Nylon magazine spread. decision was made to amicably part ways.” The shoot, Lepore said, took place in an old Victorian house in Long Island City, N.Y. The In seeking a replacement, Seeler and her team wanted an accomplished knit- idea, she said, was to showcase a young woman getting dressed for various events, whether wear designer who had a clear vision of what Karoo stands for in the it’s for the offi ce or for a date. The ads are meant to illustrate the versatility of each piece. market. Kammann seemed to be a natural fi t. She spent six years as The ads will appear in September issues of Gotham, L.A. Confi dential, Las Vegas, Boston a knitwear designer for Strenesse Gabriele Strehle in Milan until Common, Capital File, Atlanta Peach and Michigan Avenue magazines. Lepore said she chose she was recruited by American Eagle Outfi tters as senior knitwear these publications since she has stores in the cities where the magazines are sold. She has designer for the launch of its Martin + Osa brand in the U.S. also secured two billboards in Hollywood, to coincide with the opening of her second bou- The fi rst Karoo collection designed by Kammann is planned tique in the Los Angeles area. In addition, the ads will appear on Style.com during New York for spring retailing. Fashion Week in September. Also, a 2-minute-long behind-the-scenes fi lm will run on na- “Karoo has always been known for great quality and beauti- nettelepore.com. The video takes the viewer behind the camera at the ad shoot and explains fully designed knitwear, but I am looking to take it a step fur- Lepore’s vision in detail. Lepore declined to reveal her ad budget. ther,” Kammann said. “Volume is still very important, but “We wanted to keep the campaign on the smaller side, but we really think this is a great I wanted to introduce some new shapes and yarns, and time to start with advertising,” Lepore some unexpected elements in the details.” said. “We are ready to pick up the chal- The spring line, still being designed, will include lenge in this economy, and we are dying fi ne gauge cashmere dresses, soft fi ne wool knit tops to see how it will affect selling.” with sheer details, light cotton sweaters and knit blaz- Nanette Lepore, which brings in ers, something new for Karoo. about $75 million in annual wholesale “I love the whole idea of sweaters as outerwear, so there volume, currently owns and operates will be a series of knit jackets — shaped blazers, bomber jacket nine stores worldwide in cities includ- styles — there will be a huge variety of jackets,” Kammann said, not- ing New York, Los Angeles, Boston, ing that the color palette for spring will be clean white, ivory, taupe, Chicago and London. A 10th store is set melon, soft yellow and papaya. Red will be seen as a pop color. to open in December at 958 Madison The brand remains under the same owner and management Avenue, the second New York location. team at SML Sport, a New York-based manufacturer. Karoo sells Another store is planned to open in in stores such as Bergdorf Goodman, Barneys New York, Saks February in Bal Harbour, Fla. Lepore Fifth Avenue, Intermix, Henri Bendel and Fred Segal. also sells to Bloomingdale’s, Bergdorf Kammann’s line, which will open to buyers in September, An image from Nanette Goodman, Saks Fifth Avenue, Neiman will wholesale between $50 and $250. Karoo executives expect Lepore’s fi rst ad campaign. Marcus and Nordstrom. to reach $3 million in wholesale volume by the end of 2009. A spring look — J.K. — J.K. from Karoo. 10 WWD, THURSDAY, JULY 24, 2008 WWD.COM VITAL STATS OM Construction at the L.A. Live entertainment and lifestyle FR R E T complex continues despite the area’s real estate slowdown. MAJOR INDUSTRIES: Tourism, entertainment, communications, T

E

L 8 shipping, manufacturing and fi nance. 0 0 , 2 24 JULY NUMBER OF MILLIONAIRES, LOS ANGELES COUNTY: 261,081 SALES TAX: 8.25 percent AVERAGE PRICE OF GAS: $4.47/gallon NUMBER OF MOVIE AND TV SHOW LOCATION DAYS, FIRST QUARTER 2008: 11,357. On any given day there are 30 LOS ANGELES productions shooting. Pages 10 to 16 TAXABLE RETAIL SALES (2008): $95.49 billion (est.) TOTAL PERSONAL INCOME: $411 billion ANNUAL AVERAGE EMPLOYMENT, MOTION PICTURE/TV PRODUCTION: 151,800 MEDIAN AGE: 32 POPULATION DENSITY: 2,447 people per square mile. OVERNIGHT VISITORS: 25.6 million annually. SQUARE FOOTAGE OF THE CALIFORNIA MARKET CENTER: 3 million ● On Aug. 2, 1769, Spanish explorers Juan Crespi and Gaspar de Portola entered the area to become known as Los Angeles. ● In 1781, the town “El Pueblo de Nuestra Señora la Reina de los Angeles del Río de Porciúncula” was founded, and the name was later shortened to “Los Angeles.” ● Through the early 19th century, Los Angeles was a farm town and part of Mexico until the Mexican-American War. ● On April 4, 1850, the city of Los Angeles was incorporated, with California entering the union fi ve months later. ● As the movie industry blossomed, millions fl ocked to L.A. to strike it rich and by the late Fifties the city’s population had reached two million. SOURCES: U.S. CENSUS BUREAU, TSN MARKET RESEARCH, LOS ANGELES ECONOMIC DEVELOPMENT CORPORATION, CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT, LOSANGELESGASPRICES.COM, WCITIES.COM, FILMLA INC. CRISFIELD PHOTO COURTESY OF CRISLU; ALL OTHERS BY TYLER BOYE ALL OTHERS BY OF CRISLU; CRISFIELD PHOTO COURTESY

LOS ANGELES FASHION MARKET The holiday-resort market will be held Aug. 8 to 12 at the California Market Center, New Mart, Cooper Design Space and Gerry Building. Following are schedules, locations and contacts. Information is accurate Crunch Time as of press time, but attendees are encouraged to confi rm. By Anne Riley-Katz Leinberger, senior vice president at strategic planning fi rm and agency Thomas Taber & Drazen. “There re- California Market Center SUNNY SKIES AND A LAID-BACK TAKE ON LIFE ally isn’t a critical mass to support retail yet, and as 110 Ninth Street, Los Angeles may seem a movie fantasy to Los Angelenos these days, an area it’s not yet easily accessible to people without Tel.: 213-630-3600 at least from an economic perspective, as the battered a car. The timing is really bad for the projects without E-mail: [email protected] local economy teeters on the brink of recession. cash in hand.” Web: californiamarketcenter.com Plummeting home prices, an increasingly tight cred- Carol Schatz, president and chief executive of the it market and high gas and food costs are squeezing the Central City Association, acknowledged retailers have Market hours: 9 a.m.-6 p.m. local economy, and experts predict that a recovery is been slow to respond to downtown’s population, and Fashion fl oors: 2A, 3A, B, and C; 4C; 5; 6A; 7C; 8C; 9A, B, and unlikely to come any time soon. with the housing market suffering, the area has strug- C; 10A, B, and C; 11B and C; 12C, 13A, B and C Statewide, the picture is not pretty, with some parts gled to attract marquee stores. of California already in recession and the downturn “We’re defi nitely seeing an impact, but the upshot is The New Mart expected to continue into 2009, according to the most we’ll have to create a different environment. You can 127 East Ninth Street, Los Angeles recent forecast from the Los Angeles County Economic get Gap or Crate & Barrel-type stores at any mall, so Tel.: 213-627-0671 Development Corp. now we should focus on eclectic boutiques and unique Web: newmart.net “The period 2007 through 2009 will be quite challeng- stores that fi t downtown’s character,” she said. “We Market hours: 9 a.m.-6 p.m. ing for Southern California, and there will be more bad were a very hot market, unlike some others prior to news,” said Jack Kyser, the LAEDC’s chief economist. the downturn, but now we are caught up in a national The Cooper Design Space The residential housing market collapse continues event. The retail will eventually open. We have 31,000 860 South Los Angeles Street, Los Angeles to drag on the local economy, as DataQuick Information people living downtown now, that number has almost Tel.: 213-627-3754 Systems fi gures for the month of June showed the me- doubled since 1999.” E-mail: [email protected] dian price of a home in California plummeted 31.5 per- The retail struggle is widespread: Vacancy rates Web: cooperdesignspace.com cent in June compared with the same month last year. at small shopping centers across the country rose in Market hours: 9 a.m.-6 p.m. Home prices plunged 29.3 percent in June compared the second quarter to a 13-year high, and vacancies at with last year, to a median of $355,000 in six Southern larger, regional malls were at their highest level since The Gerry Building California counties, and the number of homes sold 2002, according to research fi rm Reis Inc. That spells 910 South Los Angeles Street, Los Angeles in the region, 17,424, was down 13.6 percent from the more bad news for Southern California retailing, par- Tel.: 213-228-1988 same month a year ago — the lowest number of sales ticularly auto dealers and furniture and building sup- E-mail: [email protected] since 1988 when the fi rm began to track the data. ply stores. And local metro areas are expected to see Web: gerrybuilding.com For Los Angeles’ downtown area, the slump is par- declines in taxable sales in 2008, with Los Angeles Market hours: 9 a.m.-6 p.m. ticularly painful, with the pace of development in the dropping by 1.1 percent. area continuing to slow. Los Angeles’ entertainment industry is having a SHOWS Several highly visible mixed-use projects have seen rough year too, given the impact of the Writers Guild Aug. 8-10, 2008 big setbacks this year, with a slew of fi nancing diffi cul- of America strike, which cost the local economy $2.5 Designers and Agents ties for downtown L.A.’s residential and commercial billion. New Mart and The Cooper Design Space development, like Grand Avenue and Park Fifth. Other diffi culty also looms, with feature fi lm pro- Tel.: 212-302-9575; Grand Avenue’s struggles are being closely duction remaining slow amid contentious contract Fax: 212-302-9576 watched, because the project is regarded as the linch- talks and the potential for a Screen Actors Guild E-mail: [email protected]. pin of continuing efforts to revitalize downtown L.A. strike that could cost the local economy another 5,500 Web: designersandagents.com by luring more high-end retailers and residents. The jobs in 2008. development is to include a shopping center, hotel But despite the mounting woes, there is some good Aug. 8-11 and two residential towers. news — projects like AEG’s massive L.A. Live en- Brighte Companies The $3 billion project, the fi rst phase of which was tertainment and lifestyle complex continue to move California Market Center, 1st fl oor initially slated to open in 2009, has been delayed mul- forward. Central downtown still boasts the highest Contact: ENK International Trade Events tiple times due to trouble securing construction loans, average wage in Los Angeles County at $66,464, with Tel.: 212-759-8055; Fax:212-758-3403. pushing the anticipated debut back to 2012. Dubai’s the Westside in second place with an average wage E-mail: [email protected] royal family has invested $100 million, but the repeated of $62,169. delays have prompted calls for a review of the project. The LAEDC report also forecast L.A. County will Aug. 8-11 Park Fifth, a development that includes 732 con- add 2,300 jobs this year, though unemployment rates Boutique Lingerie Los Angeles dos and 218 hotel rooms, street-level restaurants are expected to jump from 5 percent in 2007 to 6.2 per- Gerry Building and stores, has also seen lengthy setbacks, and some cent in 2008. The region has some industry sectors that Tel.: 212-374-9417 other planned developments in the county have been are still growing, such as international tourism, tech- Web: boutiquelingerieshow.com scrapped completely, like Pasadena’s recently fore- nology, health care and private education. The area’s closed Ambassador West project, which included hun- large population and business base is also increasingly Aug. 8-12 dreds of condominiums and apartments on a former attractive to foreign investment, Kyser said. Transit — The LA Shoe Show college campus. “I think downtown will get there, it’s just going to California Market Center, 13th fl oor “For downtown, it’s always been the chicken-or-egg take longer at this point than anticipated, but the effort Tel.: 213-630-3600. question with retail and residential, where each one is still there,” Kyser said. “We’ll recover, it’s just going E-mail: [email protected] is waiting for the other before they go in,” said Paul to be rough going in the short term.” Web: californiamarketcenter.com

14 WWD, THURSDAY, JULY 24, 2008 WWD.COM menu, and include potted poulet and Berkshire pork.

Blvd. 16 OM FR R E Blvd. 16 is the newest attraction for those seeking fresh, locally T T E grown ingredients and naturally raised meats. Located inside

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JULY Blvd. 16 is built on what was once a farm fi eld producing wheat and grains. The interior stays true to its roots: Inside, diners fi nd earth tones — nutty browns, grainy taupes and deep greens — even extending to the color schemes of the plates. Ingredients are found locally, producing a constantly changing menu with a full page of daily specials. Squash carpaccio topped with shaved white truffl es and beef tenderloin with truffl ed goat cheese are among the options. At the bar, drinks are infused with fresh- squeezed juices and herbs. Simon Dolinky, a San Diego surfer-turned-chef, is ambitious and cutting-edge in a town where corporate recipes usually rule hotel fare.

Café Wa s After a string of evenings club-hopping and bar-bouncing, exhaustion and exasperation can set in, and a refi ned night on the town might be in order. The latest venture from Ivan Kane (of Forty Deuce nightclubs in Hollywood and Las Vegas) is Café Wa s, a restaurant, piano bar and lounge. The interior resembles the Haunted Mansion more than any trendy Hollywood club: There are hidden lounges and several winding staircases, one leading into a mirrored wall. The result is an exclusive speakeasy atmosphere. The centerpiece of Wa s is the revolving Mason & Hamlin 1924 oversize ivory grand piano. If the piano bar, thick wood and dark lighting doesn’t convince you that you’ve stepped back in time, the drinks surely will. SCENE The bar serves classic cocktails and offers an extensive wine Los Angeles is a culinary melting pot with new restaurants and Champagne menu served by the glass, bottle or fl ask. Café opening at a dizzying pace. Here are fi ve additions to the Wa s offi cially opens July 30. city’s diverse dining scene. — Chloe Popescu Blvd. 16

Anisette Brasserie supper club. The food is European bistro fare (French and Los Angeles residents have gone far too long without an Italian favorites), and Antonia Lofaso (formerly of Spago and accessible, casual, quality French brasserie. Now, from the TV’s “Top Chef”) offers what may be the best moules frites experienced hand of Alain Giraud, formerly of Bastide, comes in the city. It’s clear Lofaso considers food an art, not just a Anisette Brasserie. Located around the corner from the 3rd necessity. Foxtail has created its own version of Happy Hour Street promenade, Anisette achieves the hustle and bustle of — the ninth hour — where cocktails and smaller bites are a Parisian eatery upon fi rst glance: Diners are greeted by fresh $9. For that price, diners can enjoy mini croque monsieurs or seafood on ice — mussels and tremendous oysters — high ricotta bruschetta, as well as specialty cocktails such as Uva ceilings, and a dynamic bar stacked high with luminescent Bellas (green grapes with gin, St-Germain, lemon juice and glass bottles. Everything inside feels completely authentic and orange bitters) or Poisoned Roses that are specialties of the utterly Parisian. Diners can enjoy tender, melt-in-your-mouth house (vodka, Lillet Rouge, organic cider, essence of rose and a steak frites or duck confi t served by a smiling, friendly waiter. splash of citrus). Chef Giraud’s breakfast menu is equally delectable, offering an American breakfast (protein-heavy with two eggs, any style), Palate Food + Wine a French breakfast (carb-heavy with two pastries, any style), Tucked away on a boulevard of car dealerships and showrooms Foxtail as well as other egg options, like Anisette omelets with goat in Glendale is a mecca for foodies and oenophiles alike: Palate cheese feta, red peppers, wild arugula and mushrooms. The Food + Wine. The brainchild of Octavio Becerra, former head savory croissant includes turkey, Gruyere, scrambled eggs, chef of the Patina restaurant group, Palate provides a decadent sautéed spinach and slices of vine-ripe tomatoes. A nice escape and adventurous menu for diners, a hip, private wine bar, a to Paris right on the West side. cheese cellar (featuring house-made salumi and chorizo) and a retail shop stocking rare and up-and-coming wines starting Foxtail at $18. Palate also serves as a private wine cellar where There’s a new club kid in town: Foxtail, the latest venture from individuals can store their own collections. Palate’s menu is nightlife impresario Sam Nazarian’s SBE Group, combines a concise — just one page, compared with nearly 10 pages of sophisticated menu with a glamorous Art Deco-style dining wines — yet adventurous. Some selections include coddled room. After dinner, patrons can head upstairs to the exclusive eggs drizzled with truffl e oil, or unusual meat dishes like pork Anisette nightclub. Opened last month, Foxtail runs like an old-school belly and oxtail. Mason jars have their own section on the Brasserie Café Wa s

ooking to de-stress? Here, a in Silverlake, Calif. “There are people you would never expect to see knee-deep in mud. I Lfew industry veterans offer have two girls and it gives us a chance to spend good time working together as a family. It’s their recipes for relaxation. an amazing experience to create a beautiful space in the middle of the city,” she said. Bryan Crisfi eld, president and “When you make the time to do something like this, it’s so fruitful….That seems to Take It Easy ceo of Crislu Corp. and a lifelong have an effect on the rest of the day. You get a real sense of time because when you resident of Southern California, plant something, it takes a while to grow. That counteracts the pace of the world in equates relaxation with surfi ng such a great way.” and beach volleyball. Chuck Dembo, 45, a commercial real estate broker specializing in retail, fi nds The second-generation owner his relief in a more daring way: snowboarding. The Los Angeles native, who grew of Crislu, which designs and pro- up skateboarding, took naturally to snowboarding, which he’s enjoyed for 22 years. duces cubic zirconium fashion Dembo loves extreme sports and when he’s not in the snow, he’s competing in triath- jewelry, has even been known to lons or mountain biking. bring a board on international “I grew up skateboarding, but when snowboards came out, I gave it a shot and business jaunts. never went back. I enjoy it because it’s a challenge. It’s part of the lifestyle here. It’s “Running a company can be not for everybody, but I like to think it keeps me young. I’ve got a couple of kids, so pretty stressful, but getting out in when they grow up, I want to keep up with them.” the ocean and surfi ng is invigo- Carol Shaw, founder of Lorac, dedicates her free time to Kundalini Yoga and rating. You see dolphins jumping, nutrition. you’re not competing or pressured, “It is the most amazing workout because it not only keeps your body in shape and Crislu chief Bryan you basically just answer to your- works on your metabolism, it cleanses the liver, cleanses your body, cleanses the Crisfi eld prepares self,” he asserted. “I don’t think anger right out of you.” to hit the surf. much about the industry when I’m Shaw tries to squeeze in a half-hour workout daily and practices the Body Ecology out there, so it’s a good break. Diet and has taken cooking classes over the past year. “It has really transformed me. “Surfi ng is pretty much free It helps balance my hormones, is antiaging and fun.” and easy to learn,” he added. “You just need your board, your suit, and there’s no In her down time, Lori Justice-Shocket, vice president of conceptual development cover charge, no lift fee.” and advertising at OPI, brings medical supplies to rural villages in Third World coun- He also competes each week in beach volleyball at Topaz Beach at Redondo, which tries with her family. “We bring the drugs with us and there are usually hundreds was immortalized in The Beach Boys’ classic “Surfi n’ USA.” “I don’t jog, I don’t go to of people who wait in line to receive them, because the communities we visit are gyms and I don’t work out, so any exercise I get is through other activities. California extremely poor and have absolutely no medical attention. In every country, we renew is unique that way because people here are always walking, biking, swimming….It’s our wedding vows in their culture, so we have been married 12 times.” not like living where having a gym is vital because the climate doesn’t allow opportu- The trips are essentially Justice-Shocket’s sole use of personal time. “When we nities to get [outdoor] exercise.” take vacation, this is what we do. I don’t remember the last time we had what most Cristina Bartolucci, co-founder of DuWop makeup and beauty products, prefers spending people would think of as a ‘normal vacation.’ We go once or twice a year for about two her time unwinding as a community gardener at the Norman Harriton Community Garden weeks, and hope to go to Morocco in the fall.”

16 WWD, THURSDAY, JULY 24, 2008 WWD.COM

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0 0 , 2 24 LY LOS ANGELES JU Smock Art A dose of denim and a shot of color goes a long way. By Khanh T.L. Tran ompared with dazzling new boutiques opened Crecently by designers such as Alexander McQueen and Phillip Lim in Los Angeles, Smockshop is a study in austerity. There’s no fan to fl ush out the summer heat in the 800-square-foot shop at 936 Mei Ling Way, fac- ing a local favorite dive bar in a Chinatown alley. Interior design is loosely interpreted as one sew- ing machine, colorful spools of thread, pincushions, a large mirror leaning against a wall and about 70 smocks on display. With the Web site smockshop.org, however, Smockshop markets more than fashion. It sells a creative concept: Twenty-three artists use the same pattern to create one-of-a-kind smocks, to be worn or to decorate homes. The melding of fashion and art is a recurring theme in the work of Smockshop’s creator, Andrea Zittel, who last year exhibited handcrafted dresses that she made and wore over a period of 15 years. They ranged from a striped knit tank dress and a black shift to a crisp white button-up shirt worn with suspenders and a full black skirt, and were on display at Los Angeles’ Museum of Contemporary Art. Dividing her time between Los Angeles and Joshua Tree, Calif., she created the pattern for the smock two years ago. Since Zittel and the other art- ists started making smocks two years ago, they have sold 200 smocks, mostly to other artists and art col- lectors, largely through galleries and art events. Some of the fi rst pieces she and fellow artists made were displayed in September at Manhattan’s Susan Inglett Gallery during New York Fashion Week. What was new to Zittel was attempting a commercial venture. “Retail is really a mystery to artists,” said Zittel, who culled advice from retail-savvy volunteers and how-to books such as “Small Business for Dummies” to launch the pop-up shop last month. “I’m interested in creating a different market to see if artists can support their art without going Gold jewelry through the traditional route of a gallery.” Costume Dept.’s retro leggings. from Garland At Smockshop, which is open through Sept. 21, Collection. there’s a dress for every occasion. A woman could get married in Tiprin Follett’s $540 fl oor-length gown crafted out of ivory silk doupioni pinned with a raw-edged brown bow, and then boogie on the dance fl oor at her reception in Jason Villegas’ $440 fl apper-inspired frock with a sheer pleated skirt and sequined collar. Or she could garden in Tony Koerner’s $340 baby blue apron dress cut out of industrial Styrofoam housewrap. Michelle Brunnick stitched a $340 black cotton mesh smock paired with matching leggings, accen- Quick Takes Hair tuated with a red heart patch on the knee. Three accessories designers accessories Mixed media artist Ashira Siegel learned how to by Little Doe. use a sewing machine to whip up an A-line dress craft items of the moment. in red plaid with fl uorescent orange trim — think schoolgirl-meets-construction worker. Still, she said the task was fun. “I love the idea of having a structure and having people work within that structure and see how dif- ferent and beautiful everyone’s stuff is,” Siegel said. Hadassa Goldvitch’s striped smock with yellow ribbon straps and Donna Huanca’s quilted smock with Little Doe shawl scarf. Chase Cohl’s fashion-forward hair accessories with a homemade hipster edge include headbands, headpieces and min- iature headdresses. Cohl began by stringing together delicate silk pansies and sewing them onto a velvet ribbon. Each handmade piece takes about seven hours to complete. Floral and feathered headbands start at $300, and taller headpieces and crowns are $400. For fall, Cohl is experi- menting with tie-dyed velvet, braided silks and gold and silver painted feathers. Custom and special orders are available at oeislove.com, and ready-made styles are sold at Satine in Los Angeles.

Costume Dept. This summer’s “Mama Mia! The Movie” is ushering in a new generation of Abba fans, bringing with them LOCAL Lycra spandex leggings as the latest retro trend to make a comeback. Costume Dept. (costumedept.com) of- fers leggings made from dead stock fabrics from the Seventies, Eighties and Nineties in wild patterns, from outrageous ethnics to leopard-print crushed velvet to turquoise tiger prints. Prices range from $35 to $59. TALENT

Garland Collection This jewelry line specializes in nameplate pendants in white, yellow and rose gold. The fl at, egg-shaped pieces are bordered by an intricately engraved crest with a space in the middle for a name, initials or a special date. Designer Nicole Mann Novick came up with the idea after seeking a keepsake of her own wedding. Now, even “Gossip Girl” Blair Waldorf sports one. Starting at $480, they come with 16-, 18- or 30-inch chains, as well as the option of a “diamonds by the yard” chain. Updated ID bracelets also are available. Novick predicts the next “It” piece will be a 57-carat lemon quartz stone “ring pop” modeled after the nostalgic candy. Garland sells at Fred Segal, Rose Ark and garlandcollection.com. — Chloe Popescu RESORT ‘08 AUGUST 8-12

WWW.COOPERDESIGNSPACE.COM 860 SOUTH LOS ANGELES STREET LOS ANGELES, CA 90014 213-627-3754 18 WWD, THURSDAY, JULY 24, 2008 WWD.COM Exec Tech Retailers Embrace New Ways to Pay

By Cate T. Corcoran RETAILERS FROM POLO RALPH LAUREN TO AMERICAN EAGLE OUTFITTERS are adding different payment systems to their online stores and reporting a lift in sales as high as 6 percent. Alternative payment systems are expected to be used in 30 percent of online trans- actions by the year 2012, according to Glenbrook Partners, a payments strategy con- sulting fi rm. Examples of alternative payment systems include PayPal, Bill Me Later, Google Checkout and eBillMe. PayPal began in 1998 as a way to beam money from one Palm Pilot to another. That didn’t take off, but the service did become popular among eBay sellers, who couldn’t qualify for merchant credit card accounts, as a faster and more reliable alternative than personal checks. Now retailers that have taken credit cards for years are adding new payment ser- vices such as PayPal and Bill Me Later to their online stores. Penetration could be as high as half of all online retailers, said analyst Sucharita Mulpuru of Forrester Research Inc., although no formal study has been done. “I defi nitely think they’re at the phase now that virtually every online retailer should consider them,” she said. One Stop, a Los Angeles-based e-commerce services provider with more than 25 fash- ion brands as clients, including Miss Sixty, Catherine Malandrino and Betsey Johnson, saw on average a 6 percent sales lift when it added PayPal to its clients’ sites. The sales increase was no coincidence, as the company did A-B testing, and the lift occurred only on versions of the sites that offered PayPal, said co-founder John Tomich. Of the additional sales, 90 percent were new customers. One reason for the popularity of alternative payment systems is security. “There’s The Catherine Malandrino online store accepts PayPal. a perception that it’s safe to use,” Tomich said. “People are still hesitant to take their credit card number and put it on a Web site.” PayPal also has a “fl oat” of $3 billion in its system that PayPal users have earned selling things online. Mulpuru called it a “slush fund” that sellers can use to buy are new customers to ShoeMall, which opened in 1999 and offers more than 300 products online. brands. Thirty percent of the new customers have returned and bought again, said “Our customer spends aggressively and that $3 billion turns over every two weeks Bresina. Average order value has increased 7 percent. in our system,” said PayPal senior director of merchant services Tyler Hoffman. “It In a study of Bill Me Later, Forrester found that the payment method increased fuels impulse purchases. It almost feels like a gift certifi cate.” sales by 2 to 3 percent. And with payment systems that offer fi nancing or a draw on Alternative payment systems appeal to customers who don’t have or want to use earned cash, as in the case of PayPal, “you can load up the shopping cart and don’t have to worry about the fi nancial consequences,” said Mulpuru. The typical user of alternative payment systems is older and more fi nancially secure than one might expect. On average, she is female, age 40, with an income of around People are still hesitant to take their credit card $80,000, and spends $300 to $500 online every three months, according to Forrester. “number and put it on a Web site. One downside to alternative payments might be for multichannel retailers who have separate sale systems in their brick-and-mortar stores and might have trouble ”— John Tomich, One Stop processing returns. Some retailers, such as Polo, require customers who pay with PayPal and other online systems to send returns back through the mail. American Eagle issues gift cards for in-store PayPal returns. Alternative payment systems typically cost less or no more than merchant credit credit cards, said Mulpuru. Plus, they are fast and convenient to use — in essence, card fees. Depending on volume, PayPal charges retailers approximately 1.9 to 2.9 offering the equivalent of express checkout — because returning users don’t have to percent plus 30 cents a transaction. (Merchants do not have to pay credit card inter- fi ll out any information, even if they are buying at a new store. change fees on top of that if a card is used to pay.) The convenience factor has been a draw for customers at ShoeMall, said Jodi If one alternative payment system is good, two might be better. Bresina, ShoeMall Internet director. “It’s a quick, convenient way to buy shoes on- One Stop is planning to add Bill Me Later to its client sites. ShoeMall plans to line,” she said. “The ShoeMall customer is an Internet-savvy woman shopper who introduce Bill Me Later’s 90-day fi nancing during the holiday period, and is mulling doesn’t have a lot of time. This lets them check out quickly.” adding PayPal or Google Checkout, as well. When the online-only retailer added Bill Me Later to its site at the end of February, Still, retailers might not want to add too many. new business and average order size increased. Three out of four Bill Me Later users “Some sites have eight or 10,” said Tomich. “That might be overkill.” Bits & Bytes Custom Denim Grows WITH THE INTRODUCTION OF A TROUSER- style jean last week, IndiDenim arguably offers the

— C.T.C. widest range of options for “mass custom” jeans ▲ Outdoor Assistant to date.

Never got your Girl Scout navigator badge? ▲ Higher Power The Web company is owned by Archetype The waterproof Nuvi 550 will rescue you Colored like Solutions Inc. of Emeryville, Calif., which runs the with its road and topographical maps, the sunrise, the custom clothing programs for Lands’ End, QVC and water maps, compass page, restaurant Solio Hybrid J.C. Penney. It has also spun off Zafu, an online fi t guide, directions and list of scenic spots 1000 transfers recommendation site for jeans. of interest on Route 66. Tap the screen to juice from the wall or the The online ordering process is similar, and the instantly see your exact location. Available sky to most electronic devices. jeans are made in the same factory in Mexico. But this quarter for $500. One hour of sunshine nets 15 minutes of the styles are different. talk or 40 minutes of music, and the Solio’s “We’ve been working in the custom space for lithium battery can store power for as long as a while and we saw an opportunity at the more a year. Retails for $80. premium end of the market,” said IndiDenim president Marybeth Luber, who was an investment 33% banker before she joined Archetype four years ago. Three basic body types include relaxed, fi tted and trouser styles, each named after San Francisco neighborhoods such as the Presidio. Other options of multichannel retailers report their can be confi gured, including the length of the rise, staff in one channel has access to leg width, pocket style, fl y type, fabric and wash. information from the others. “Mass customization” is a blend of the new — Forrester Research Inc. and old that uses advanced technology rather than traditional artisan techniques to create a semi- or fully customized product at popular prices. Levi Strauss & Co., for example, had a custom program in the early Nineties called Personal Pair, but the ▲ Personal Information style options were more limited. NEC’s Digital Signage Solution, on exhibit in Tokyo through the end Prices range from $135 to $145, orders take of August, includes a fl at-screen monitor and a camera. The system three weeks to arrive, and the jeans can be returned uses face recognition to size up the shopper’s age and gender, then for any reason for a full refund. Luber declined to reveal how many orders and returns IndiDenim has

displays relevant ads and product information on the screen. RYUICHI SATO/CORBIS PHOTO BY received since it started shipping jeans in February. WWD, THURSDAY, JULY 24, 2008 19 WWD.COM Inter Parfums Sales Rise Friends and Fans Fete Toledo PARIS — Inter Parfums Inc. posted second-quarter revenues of cads of Isabel Toledo’s not that many designers do.” $99.1 million, a 19.7 percent increase from $82.8 million during Sdevotees waited patiently Rodriguez said he and the the same period a year ago. At constant exchange, sales rose by on the sidewalk Tuesday night Toledos attended the same high 12 percent. to take the claustrophobic el- school, but only became friendly During the quarter, “European operations achieved sales of $83.9 evator ride to her 28th Street once they started out and were million, up 19 percent from $70.4 million in the same period last penthouse in Manhattan. At running in the same circles. year,” stated Jean Madar, chairman and chief executive offi cer of one point, even a police cruis- Tuesday’s party gave Michael the New York-based fi rm. er pulled up to see what all the Vollbracht the chance to intro- The company’s fi rst-half net sales jumped 32.3 percent to $222.2 commotion was about. duce himself to Rodriguez and to million from $167.9 million in the year-ago period, a 24 percent in- Partygoers turned out to toast pile on the praise, and Rodriguez crease at constant exchange. Toledo for being this year’s re- made it clear the feeling was mu- Meanwhile, Inter Parfums SA, the Paris-based subsidiary of Inter cipient of the Fashion Institute tual. “See, some designers really Parfums Inc., registered fi rst-half 2008 sales of 128.3 million euros, of Technology’s Couture Council do like each other,” Vollbracht or $196.4 million at average exchange, a 16.3 percent increase on Award for Artistry for Fashion, offered. “And are nice to each fi rst-half 2007. At constant exchange, revenues gained 24 percent in and for the Museum at FIT’s 2009 other,” Rodriguez added. Ruben the period. exhibition of her work. Vera Wang, There was no shortage of and Inter Parfums SA attributed the growth to numerous factors, Simon Doonan, Cynthia Rowley, compliments for the guest of Isabel including Burberry fragrances, whose sales came in at 88 million Maria Cornejo, Narciso Rodriguez, honor, whom FIT will fete dur- Toledo. euros, or $134.7 million, up 19 percent, or 27 percent at constant Linda Fargo and Nicole Fischelis ing a fashion week luncheon. exchange. Lanvin fragrances met targets and had “robust” reve- were among those who braved the She described the occasion as nue growth, particularly in Asia and Eastern Europe, stated Inter non-air-conditioned space and, in “a stamp of approval” more Parfums SA. The Van Cleef & Arpels fragrance business “exceeded some cases, 11 fl ights of stairs, than anything. She said, “I real- expectations,” thanks to its classic scents and broadened world- to get there. Toledo’s illustrator ly think the Couture Council has wide distribution. Inter husband Ruben greeted well- brought a lot of attention to our Parfums SA’s other fra- wishers at the door and imme- industry and to individuals. It’s grance brands, including diately handed them fans with a not just about the big corporate BEAUTY BEAT Roxy, S.T. Dupont, Nickel sketch of his wife. Many admired fashion world, which is how we and Christian Lacroix, other pieces of his work, which look at American fashion. They were generally on target, according to the fi rm. adorn their cavernous studio are looking at individuals.” Its sales in Asia, which generates 16 percent of overall business, with a sweeping view of the As Toledo continues to design rose 30 percent to 20.5 million euros, or $31.4 million, in the half. Empire State Building. for private clients until she is of- Revenues in France had a 27 percent uptick, while sales in Western In her remarks, Harper’s fi cially free from Jones Apparel Europe gained 21 percent; in the Middle East, 26 percent, and in Bazaar’s editor in chief Glenda Group in October, Michelle Obama South America, 38 percent. In North America, Inter Parfums SA’s Bailey referred to the design is one individual who could help sales declined 5 percent due to the weak U.S. dollar. However, the duo as “New York’s chicest cast her fate. The presumptive business there grew 8 percent in volume terms. couple” and said, “I can’t help Democratic presidential candi- Inter Parfums SA reconfi rmed its full-year 2008 sales guidance of but think if Isabel didn’t exist, date’s wife started buying Toledo’s about 260 million euros, or $408.9 million, based on the current eu- Ruben would have created her.” designs at Ikram in Chicago and Maria Cornejo ro-dollar exchange rate, while Inter Parfums Inc. affi rmed its sales Later, co-host Valerie Steele, has since contacted the designer JIMI CELESTE PHOTOS BY guidance of approximately $460 million for the year. director of the Museum at FIT, about collaborating. Toledo said, dress her at home, I would be a The company said it recently extended its fragrance and cos- told WWD, “Isabel is someone “I am putting together a few things happy woman. That’s the plan — metics licensing agreement with Paul Smith for seven more years, who understands the artistry and to send to her — some dresses, to get into the White House.” through Dec. 31, 2017. The prior 12-year agreement was signed in craftsmanship of fashion, and skirts and pants. Frankly, if I could — Rosemary Feitelberg December 1998. — Jennifer Weil, with contributions from Matthew W. Evans P&G Taps External Relations Consultant rocter & Gamble Prestige Products has named Daniela PGiardina as international consultant for its external rela- tions department. Giardina, who was most recently communi- cations director for Valentino, will handle public relations and events exclusively for fragrance licenses in the P&G Prestige Products portfolio, which includes brands such as Gucci, Dolce & Gabbana, Replay and Valentino.

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Friday, July 25, 2008 Jacob K. Javits Convention Center For more information: www.careerfair.gia.edu or call 800-421-7250 ext. 4100 Prime Sponsor: The Nielsen Jewelry Group Sponsor: Necklace © Platinum Guild Int’l, 2008. Pendant © Mark Schneider, 2008 © Mark Schneider, © Platinum Guild Int’l, 2008. Pendant Necklace JCK Publishing Group 20 WWD, THURSDAY, JULY 24, 2008 Sweatshop for Top Brands Raided Top Executives Continued from page one workers to fi ll out two time cards — one for Monday Queens, is alleged to have underpaid more than 100 through Wednesday and a second card for the remain- mostly immigrant workers by nearly $3 million in mini- der of the week — ensuring that no more than 40 hours Still Seeing Green mum wage and overtime pay since 2005. The investiga- of work would show on any card, investigators said. tion found that prior to 2005, Jin Shun Inc. operated According to the one set of time cards the factory own- under the name Venture 47 and allegedly withheld ers would present to labor investigators, workers were Wal-Mart executives dominated WWD’s nearly $2.5 million in minimum and overtime wages. completing an entire item of clothing in less than a min- annual compensation survey. Officials are seeking repayment of the more than $5 mil- ute. Investigators even found a question-and-answer lion total owed to workers. Both companies are owned sheet meant to coach workers on how to respond to by Jikai Lin and Zhang Yun Chen. Neither could be labor investigators without raising suspicions. reached for comment. No arrests have been made, but Smith said the de- The owners have already changed the company name partment will be seeking payment of the millions owed to Garlee NY Inc. to workers. She also is working with the Queens district Offi cials raided two facilities Wednesday morning attorney to determine whether criminal charges can and tagged more than 10,000 garments with a label stat- be brought for falsifying payroll records and coaching ing the garments were unlawfully manufactured. The workers to lie to investigators. If asked how they were garments included items for Express and Macy’s private paid and how often, workers were told to respond, label brands Ultra Flirt and INC. “Every Friday, the funds go into my bank account via Manhattan-based manufacturer Urban Apparel con- direct deposit.” If asked if they were happy with their tracted with Jin Shun. Urban Apparel has already paid work environment, workers were told to respond with: $60,000 in underpayment to have the tags removed. “I am happy here. We get along with our boss. He is very New York State Labor Commissioner M. Patricia nice to us and treats us well.” By Vanessa Weber and Cecily Hall Smith said the factory had been under investigation for Dan Henkle, Gap Inc.’s senior vice president of so- some time, but it wasn’t until two workers came forward cial responsibility, said the company took the matter etail executives continued to be rewarded hand- in May that it was discovered exactly how the operation seriously and would be cooperating with the state’s Rsomely for their efforts in 2007, but, like the num- was hiding its labor practices. Department of Labor. bers popping up for the rest of the economy, their com- With the help of the workers, who have remained “At this time, we have no production in this factory in pensation stumbled a bit. anonymous out of fear of reprisals, the Department of Queens and we are suspending any future production In fi scal 2007, the 10 highest-paid retail executives Labor’s Apparel Industry & Fair Wages Task Force was with this facility until this investigation is satisfactorily made a collective $143.98 million, a number that, while resolved,” said Henkle. “As we do with all of our gar- high, represents a collective decline of $54.3 million, ment suppliers, we monitor working conditions, includ- or 27.4 percent, from fi scal 2006 — when the 10 highest- ing wages, working hours and many other issues on a paid retail executives made a combined $198.3 million. regular basis. We have a team of more than 80 employ- There were an equal number of increases and de- ees located around the world dedicated to improving creases among the executives, with gains averaging the lives of the garment workers who make our clothes. $2 million to $4 million and the declines about the In fact, our team conducted approximately 4,000 inspec- same. But retailers aren’t the only executives to suffer: tions, including unannounced inspections, of 1,879 fac- According to reports from Forbes, chief executive offi - tories last year. We revoked 24 factories for failing to cers among most of the country’s 500 biggest companies comply with our standards.” took an average pay cut of 15 percent last year. Henkle added, “We realize that monitoring alone is not Those retailers seeing the biggest drops in compen- enough, so we work with factories, local civil society orga- sation in 2007 included Target’s Robert J. Ulrich, who, in nizations and governments to fi nd solutions to systemic his fi nal year as ceo, saw his total pay package drop by causes of poor working conditions in garment factories.” $24 million to $12.2 million, and Abercrombie & Fitch ceo Macy’s said the allegations represented a “serious vi- Michael Jeffries, who witnessed a drop of $14.7 million olation” of the company’s code of conduct and that it has to $11.4 million. Ulrich, who was at the top of the retail “begun our own internal investigation on this matter.” compensation list in 2006, now rests at number six. Ulrich A spokeswoman for Limited Brands Inc. said the retired as ceo May 1, but remains Target’s chairman. We have no production in this company’s primary concern was for the well-being of Why did Target’s and Abercrombie’s top executives “ the workers involved. experience such big pay cuts? Jeffries’ loss may be a re- factory in Queens and we are “We are committed to continuing to improve our sult of his company having had outstanding results in the procedures and programs, and we have a policy of zero past, noted Terre Simpson, founder of New York-based suspending any future production tolerance for those vendors and factories that are un- executive search fi rm Simpson Associates. “Because re- willing or unable to work with us to achieve such com- tailers’ fi nancial results have been a little rocky, execu- with this facility. pliance,” she said. tives are being assessed against such successful results ”— Dan Henkle, Gap Inc. Jeffrey Parisian, senior vice president of administra- in the past,” she said. A big part of Jeffries’ year-over- tion at Coldwater Creek Inc., said the company was also year decrease also came from option awards, which fell able to ascertain that workers faced 12-hour days, often launching its own internal investigation and would co- dramatically to $9,543 from $8.4 million. Jeffries also saw working six or seven days a week. Employees were paid operate with the Labor offi cials. slower growth in the area of pension and deferred com- on a piece-rate basis, earning 22 cents a garment. For “Coldwater Creek has done no business with Jin pensation, which added $1.5 million to his compensation more complex garments, workers could earn 40 cents. Shun and has done no business with Urban Apparel for in 2007, down from $6.7 million a year earlier. All told, employees received an average of $250 a week, over a year,” said Parisian. “However, Coldwater Creek While the Columbus, Ohio-based retailer’s stock is despite typically putting in 66-hour work weeks. is diligently investigating this matter as a result of the down 23 percent so far this year, 2007 fi nancial results “That means [the workers] were basically bilked out allegations.” were strong. For the year, Abercrombie & Fitch’s net of $375 a week, or $1,600 a month,” said Smith, citing Smith said there are about 1,700 garment manufactur- income reached $475.7 million, or $5.20 a share, versus the state-mandated $7.15 minimum wage, as well as the ing facilities operating in New York City, and encouraged $422.2 million, or $4.59, the previous year. Sales grew 13 higher overtime rate workers were denied. major brands and retailers to improve their monitoring percent to $3.75 billion from $3.32 billion. The company Smith also noted that a typical worker who was em- and compliance procedures. In the Nineties, the manu- is also preparing to open its second-largest European ployed by Jin Shun and Venture 47 over the last six years facturing industry in New York was much larger and was fl agship in Copenhagen and has plans to open stores in was likely owed an average of $35,000 for his or her work. the subject of numerous sweatshop scandals and viola- other European locales. The factory owners are alleged to have played an ac- tions. But as the industry has shrunk from an onslaught Overall, “retail stocks have been hit very hard this year, tive role in circumventing labor laws. They instructed of importing, less labor violations have come to light. and pay packages are typically based on stock and incen- tives,” agreed Elaine Hughes, president of E.A. Hughes, another executive search fi rm based in New York. And, as gas and food prices soar and job cuts have intensifi ed, consumers are opting for necessity shopping over frivo- Costco Stumbles, but Retail Shares Sizzle lous spending, a shift that Wal-Mart — Target’s greatest profit warning from Costco to $63.43, and weighed down sever- its holiday assortment, which the competitor — can cater to with its cheaper price tags. AWholesale Corp., and a double- al of its low-cost competitors. Most retailer has characterized as indica- Lena Michaud, a spokeswoman for Target, said Ulrich digit drop in its shares, couldn’t notably, BJ’s Wholesale Club Inc.’s tive of its move toward more updat- “received less because company performance did not keep retail stocks from their second shares were off 9.5 percent to $36.89. ed, less dowdy fashion. achieve those preapproved goals set by the board.” consecutive day of advances. Wal-Mart Stores Inc., owner of Sam’s The comment helped to pro- Because one of those goals was related to the size of a With crude oil prices again ex- Club, saw its stock decline 1.6 per- pel other specialty stores catering non-equity incentive plan and other compensation com- periencing a sharp drop Wednesday cent to $58.09. Off-pricers TJX Cos. to mature women upward as well. ponents, Ulrich saw a smaller pay package last year. and settling at below $125 a barrel Inc. and Ross Stores Inc. were down Charming Shoppes Inc. rose 8.4 per- Replacing Ulrich in the number-one spot is H. for the fi rst time this month, the 2.9 percent and 1.3 percent, respec- cent to $5.43; Coldwater Creek Inc. Lee Scott, president and ceo of Wal-Mart Stores, who Standard & Poor’s Retail Index tively, to $34 and $39.18. was up 4.4 percent to $7.18; The Dress brought home roughly $15 million more than any other gained 8.4 points, or 2.4 percent, Declines were generally rel- Barn Inc. was up 4.1 percent to $15.25; executive on the list. Scott received nearly $30 million to fi nish the day at 360.98. As on egated to low-cost retailers, who’ve Chico’s FAS Inc. rose 3 percent to in stock and option awards and incentive plans, bring- Tuesday, the performance far out- outperformed the overall market $6.29; Christopher & Banks Corp. was ing his total compensation to $31.6 million. stripped advances for the Dow Jones throughout the recent months of up 2.6 percent to $8.60, and AnnTaylor Other notable jumps in compensation came from Industrial Average (up 0.3 percent economic turmoil. Stores Corp. rose 2 percent to $24.65. Aéropostale ceo Julian Geiger, who broke into the top to 11,632.38) and the S&P 500 (up 0.4 For apparel retailers, however, In the teen space, Abercrombie 10 at number nine, with a $3.5 million increase in com- percent to 1,282.18). gainers far outdistanced decliners. & Fitch Co. moved ahead 4.4 per- pensation to $9 million. And the 10th highest-paid ex- However, Costco’s warning that The Talbots Inc. saw its shares ad- cent to $63.09 and Pacifi c Sunwear ecutive, the former president and ceo of Sears Holdings higher costs would cause it to miss vance 11.3 percent, to $13.03, after of California Inc. increased 4.4 per- Corp., and now the ceo of Potbelly Sandwich Works, its fourth-quarter profi t estimates a research note from Buckingham cent to $8.98. Aylwin B. Lewis, took in roughly $4 million more than pulled its shares down 11.9 percent, Research Group heaped praise on — Arnold J. Karr in the prior year. WWD, THURSDAY, JULY 24, 2008 21 WWD.COM

Need more proof we’re in an economic downturn? Just ask retail executives: The 10 highest-paid last year brought in 27.4 percent less TheWWDList overall than the previous year’s top earners. So who were some of the winners? Wal-Mart’s senior executives. In fact, three of the $379 billion retail giant’s executives make the list this year (note: WWD analyzes the three highest-paid executives from each company tracked). Number-one ranked H. Lee Scott’s compensation package rose by roughly $2 million in value. Meanwhile, Robert J. Ulrich, Target’s chief executive who Head Honchos retired in May, fell to sixth place with a $24 million drop in value, after coming in fi rst last year. Retail industry executives ranked by the values of their annual — Cecily Hall, with contributions from Vanessa Weber compensation packages* in 2007.

H. LEE SCOTT JR., 59, PRESIDENT AND CHIEF EXECUTIVE OFFICER, WAL-MART STORES INC. Total value of 2007 compensation package: $31.6 million Base salary: $1.4 million; Bonus: $0; Stock and option awards: $20.9 million; Other: $9.3 million This Kansas-bred son of a gas station owner enjoyed a 6.4 percent jump in compensation from one year ago as Wal-mart got back on track by emphasizing value and low prices. Scott earned over $15 million more this year than his fellow top Wal-Mart executives, thanks to hefty stock and 1 option awards — in fact, his value is $15 million more than any other executive on the list. Scott joined the company in September 1979 and under his leadership Wal-Mart has become the biggest retailer in the world. This past fi scal year, Wal-Mart spent $101,208 on Scott’s use of the company aircraft, not including pilot and crew salaries. PAUL MARCIANO, 56, CO-CHAIRMAN AND CO-CEO, GUESS INC. Total value: $15.3 million Base salary: $1 million; Bonus: $0; Stock and option awards: $7.2 million; Other: $7.1 million Though he made almost $2 million less than in 2006, Guess’ Marciano still managed to rank second among all other retail executives, with a package valued at $15.3 million. In March, the specialty retailer reported strong full-year fi nancial results — its best full-year results since it launched 27 years 2 ago. For the full year, earnings grew 42.2 percent to $186.5 million, or $1.99 a share, from $131.2 million, or $1.42, last year. Total revenues grew 40 percent to $1.66 billion from $1.19 billion. The Los Angeles-based retailer also revealed plans to open 245 stores in the current fi scal year, including 185 internationally and 60 in the U.S. The retail expansion comes on top of opening 184 stores last year. JOHN B. MENZER, 56, FORMER VICE CHAIRMAN AND CHIEF ADMINISTRATIVE OFFICER, WAL-MART STORES INC. Total value: $14.9 million Base salary: $1 million; Bonus: $0; Stock and option awards: $9.2 million; Other: $4.6 million Menzer’s compensation is up 16.9 percent from 2006 due to increases in stock awards and other incentives, which helped catapult him into the top 10. 3 Menzer, who retired in March, began his Wal-Mart career in 1995 as the company’s chief fi nancial offi cer and was promoted to president and ceo of Wal-Mart International in 1999, where he had full responsibility for the company’s operations in 15 countries. Under his leadership, international sales grew to $60 billion from $20 billion. He also currently sits on the board of the Emerson Electric Co.

MARGARET C. WHITMAN, 52, FORMER CEO, EBAY INC. Total value: $13.9 million Base salary: $995,016; Bonus: $243,013; Stock and option awards: $10.4 million; Other: $2.2 million She’s the only top female executive on the list, even though Whitman is leaving San Jose, Calif.-based eBay. She was president and ceo from 1998 4 before stepping down in January in preparations for her March retirement. She remains a special advisor and is succeeded by John Donahoe, who, until March, had been heading eBay’s core auction and e-commerce businesses. Whitman earned a bachelor’s in economics from Princeton University and her M.B.A. from Harvard Business School — she donated $30 million to Princeton, which built and named its sixth college after her.

MICHAEL T. DUKE, 57, VICE CHAIRMAN, INTERNATIONAL DIVISION, WAL-MART STORES INC. Total value: $13.3 million Base salary: $975,000; Bonus: $0; Stock and option awards: $7.4 million; Other: $4.9 million Duke’s compensation package increased by 25 percent from $10.6 million the year prior from an increase in salary, stock awards and other incentives. Having previously worked for Federated and May department stores, Duke joined Wal-Mart in 1995 and held various positions, including executive 5 vice president of administration and senior vice president of distribution, before he became vice chairman of the Bentonville, Ark.-based retailer’s international division. Duke earned a B.S. in industrial engineering from the Georgia Institute of Technology in 1971 and is currently a member of Georgia Tech’s Advisory Board. ROBERT J. ULRICH, 64, CHAIRMAN AND FORMER CEO, TARGET CORP. Total value: $12.2 million Base salary: $1.7 million; Bonus: $2.2 million; Stock and option awards: $5.6 million; Other: $2.8 million As Wal-Mart has risen, Target has stumbled slightly. The discounter has been having a tougher time with the challenging economy, with same-store sales growth failing to match that of its rival, Wal-Mart. This perhaps contributed to the decline in Ulrich’s compensation package last year, which 6 decreased by nearly 200 percent from a year ago, due to reductions in stock and option awards and non-equity incentive plan compensation. But don’t worry too much about Ulrich — he still brought in over $12 million in 2007. He retired as ceo on May 1 of this year but will remain as chairman of the board through January, while Target president Gregg W. Steinhafel succeeds him.

JAMES V. O’DONNELL, 67, PRINCIPAL EXECUTIVE OFFICER, AMERICAN EAGLE OUTFITTERS INC. Total value: $11.9 million Base salary: $1.4 million; Bonus: N/A; Stock and option awards: $8.8 million; Other: $1.8 million O’Donnell’s compensation package for 2007 refl ected a 22 percent decrease from $15.3 million in 2006, because of a decrease in option awards and non- 7 equity incentive plan compensation. He still managed to inch up one spot in the top 10. O’Donnell has served as chief executive offi cer since 2003 for Pittsburgh-based American Eagle, which sells apparel, accessories and footwear to a 15- to 25-year-old demographic. Prior to this position, O’Donnell had been the company’s chief operating offi cer and a member of the company’s board since 2000.

MICHAEL S. JEFFRIES, 63, CHAIRMAN AND CEO, ABERCROMBIE & FITCH CO. Total value: $11.4 million Base salary: $1.5 million; Bonus: N/A; Stock and option awards: $5.1 million; Other: $4.9 million This M.B.A. graduate from Columbia University has remained chairman of this edgy Columbus, Ohio-based apparel retailer since 1998 and ceo since 8 1992. A&F operates stores under the A&F, abercrombie, Hollister, Ruehl and Gilly Hicks names and has generally been able to buck the economic turmoil. However, Jeffries’ compensation is down on the previous year by 56 percent this year, because of a reduction in option awards and other incentives, such as change in pension value and non-qualifi ed deferred compensation earnings.

JULIAN R. GEIGER, 62, CHAIRMAN AND CEO, AEROPOSTALE INC. Total value: $9 million Base salary: $1 million; Bonus: $0; Stock and option awards: $2.5 million; Other: $5.5 million Geiger has held this title at New York-based Aéropostale since 1998. Previously, he was employed as president and ceo of Federated Specialty Stores (a division of Federated Department Stores Inc. that included Aéropostale). Geiger’s compensation value increased by 63 percent this year with the 9 help of a jump in stock and option awards, salary and other incentives, which has helped launch him into the top 10: He earned about $3.5 million more than last year. Aéropostale’s 683 mall-based stores sell sportswear and other merchandise under its own brands, principally targeted at customers 11 to 18 years old. Shops operate under the names Aéropostale and Jimmy’Z. AYLWIN B. LEWIS, 54, FORMER CEO AND PRESIDENT, SEARS HOLDINGS CORP. Total value: $8.9 million Base salary: $996,154; Bonus: N/A; Stock and option awards: $5.6 million; Other: $2.3 million Lewis edged his way into the top 10 this year, thanks to an impressive increase in stock and option awards, along with other incentives. Lewis ended his 10 post as ceo and president of the struggling Sears on Feb. 2, after having served in the position since September 2005. In June, he was named president and ceo of Chicago-based Potbelly Sandwich Works, a chain of fast-food restaurants. Lewis earned his M.B.A. from the University of Houston and an M.S. from Houston Baptist University. He is also a member of the board of the Walt Disney Co. and Halliburton. MENZER PHOTO BY AP PHOTO/APRIL L. BROWN; O’DONNELL BY J. VESPA/WIREIMAGE; LEWIS BY NAJLAH FEANNY/CORBIS LEWIS BY J. VESPA/WIREIMAGE; AP PHOTO/APRIL L. BROWN; O’DONNELL BY MENZER PHOTO BY SOURCE: SECURITIES AND EXCHANGE COMMISSION FILINGS AS OF JULY 2008; *PACKAGE VALUES INCLUDE BASE SALARY, BONUS AND STOCK OPTIONS AND OTHER AWARDS; “OTHER” MAY INCLUDE: (1) NON-EQUITY INCENTIVE PLAN, AND/OR (2) THE CHANGE IN PENSION VALUE AND NON-QUALIFIED DEFERRED COMPENSATION EARNINGS; N/A: NOT APPLICABLE 22 WWD, THURSDAY, JULY 24, 2008 WWD.COM MEMO PAD Fed Report Cites TOUGHER FOR THE TIMES: Standard & Poor’s placed The editor. Mollett returns to In Style after working there as a New York Times Co.’s BBB- rating (the lowest investment fashion assistant. She had been at Glamour since 2004. grade rating) on CreditWatch negative on Wednesday, A replacement has not been named for Mollett’s position, Spending Slowdown following the release of the publisher’s second-quarter but a vacancy in the features department has been fi lled. earnings. In addition, a report out Wednesday from Veronica Chambers, a freelance writer and author of several By Liza Casabona Goldman Sachs predicted that the company would be books, has been named features director. Chambers has downgraded to noninvestment grade (junk status) within roots at the magazine — in the Nineties, she was named WASHINGTON — The arrival of stimulus checks in the next six to 12 months. During an earnings call, one of its Top 10 College Women and edited a column in May and June could not counteract the overall slow- Times executives said the company intends to keep its the magazine, “Bridges.” More recently she has penned ing effects of economic pressures on U.S. consumer investment-grade status, noting that it has historically profi les of Jennifer Lopez and Mariska Hargitay. Additionally, spending, according to the Federal Reserve Board’s been the case. Chambers has contributed to O at Home; the American, Beige Book report. The economic downturn and changing media Japanese and Italian editions of Vogue, and Philadelphia The tax rebate checks had little or no effect on landscape are hitting the Times hard. The publisher’s Home. The changes come as Glamour preps to unveil a most consumer goods, with almost all of the 12 dis- net income sank 82 percent during the second redesign in its September issue. — Stephanie D. Smith tricts tracked by the Fed reporting slowing or weak quarter, compared with the same period a year ago, to sales. The anecdotal report, released on Wednesday, $21.1 million. Total revenues decreased 6 percent to CORNER-OFFICE CONTRIBUTIONS: Portfolio.com is adding said “consumer spending was sluggish or slowing $741.9 million. Executives weren’t able to predict how yet another blog to its Web site, Playas (yes, Pla- in nearly all districts, although tax rebate checks advertising will fare for the remainder of the year, and YAAHS). The weekly blog will feature contributions boosted sales for some items.” Janet Robinson, president and chief executive offi cer, from celebrities and executives, and appear on the site Electronics in particular got a small sales boost in added that ad budgets remain tight. She noted that every Thursday. Each blogger will post about a half- some regions from the rebate checks, the Fed report- categories directly impacted by the price of oil, such dozen entries during his or her Thursday appearance. ed, but many consumers spent the extra cash on essen- as airline, hotel and automotive, will continue to be Movie producer Harvey Weinstein will be the fi rst to blog tial purchases like food and fuel. Sales at stores selling a struggle. Last month alone, ad revenue for the New on Playas today, followed by Playboy Enterprises chief discretionary items, like apparel and housing related York Times Media Group decreased 18.3 percent executive offi cer Christie Hefner, author, entrepreneur goods, were especially weak, the districts said. due to dips in studio entertainment, technology, and chess expert Bob Rice and Ford Models ceo John Most retailers in Boston said there was a sales telecommunications and media advertising. Retail ad Caplan. Few guidelines have been given to the guest downturn in May and June, with inventory levels in revenue fell because of softness in the department bloggers on their topics of conversation, but Dan the region reported to be down in response to soft- store, mass market, national retail and cosmetic Colarusso, portfolio.com managing editor, is confi dent ening sales. Some retailers said they were reducing manufacturer categories. Luxury print advertising was each will keep visitors engaged. “If Harvey decides head counts, as well. a bright spot, though, up in the low-single digits from to talk about the movie business, about the fashion Conversely, inventory levels were high for San last year in part due to the “T” supplements, which are business or about politics, he’s going to strike a cord Francisco department stores and smaller retail out- becoming increasingly important to the ailing Times. with other like-minded execs who aspire to be Harvey lets due to soft sales. Discount chains reported small A spokeswoman said fashion jewelry was strong with Weinstein.” Or not. — S.D.S. sales increases and continued to outperform conven- increases from fashion and watch advertisers. Online tional department stores, the Beige Book said. revenues are on the rise, up 13 percent, thanks to SUPER SCRIBE: Naomi Campbell’s journalistic résumé may “As in other periods, respondents pointed to in- strong display advertising. include interviewing political heavyweights for British creases in food and energy prices as a restraining To make up for the tough times, the paper is again GQ, but the feisty supermodel isn’t above turning her pen factor on sales of other products,” the report said. boosting its cover price. Starting Aug. 18, the Times to more low-brow issues. Campbell guest edited the “3 Retailers in New York said sales were mixed, but will increase its Monday-Saturday newsstand price by AM” gossip column for British tabloid The Daily Mirror on generally stayed close to plan in July. New York City 25 cents to $1.50. This announcement comes only Tuesday (in which she’s featured ad nauseam), offering in particular reported “continued brisk business.” a week or so after The Wall Street Journal said it was her two cents on everything from Kelly Osbourne’s love life Compared with a year ago, sales were up slightly, raising its newsstand price by 50 cents to $2, starting to BFF Victoria Beckham. In a double-page spread, she driven mostly by increased purchases of seasonal July 28. During the call, Robinson noted that the also aired her views on the current crop of mannequins. apparel, retailers reported. However, one major re- two newspapers share only an 11 percent overlap in “I think the term ‘supermodel’ gets thrown around too tail chain said that while costs for holiday season circulation. — Amy Wicks much nowadays,” she mused. “Kate Moss is obviously merchandise had not increased substantially, the a supermodel, but after Gisele, don’t think there’s been costs for spring 2009 items were showing “some sig- SWAPPING SEATS: Glamour may have lost a market editor, one.” Campbell recently interviewed Argentina’s fi rst nifi cant escalation.” but it gained an editor in its features department. elected female president, Cristina Fernandez de Kirchner, Philadelphia reported increased sales at discount Samantha Bishopp Mollett, the magazine’s senior fashion for the September issue of British GQ, which will hit stores, but tax rebates gave a boost mostly to electronics editor, market, is moving to In Style as senior market newsstands at the end of this month. — Louise Bartlett and appliances. Discounters in Richmond reported an increase in sales of grocery and entertainment items.

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PRODUCTION ASST. Sales Executive Better Knitwear co. seeking organized, Est. Contemporary Multi-line Showroom detail oriented p.asst. Responsible for is seeking an experienced salesperson overseas production, order input, and with minimum of 2 years experience in Alterations Manager traffic. 2 yr, experience required, email women’s contemporary market. Must Showrooms & Lofts resume and salary requirements to: have strong specialty store following INDEPENDENT REP Alterations Manager needed for Couture [email protected] for east coast territory. Must be able to BWAY 7TH AVE SIDE STREETS Bridal Store located in Staten Island. INDILED INT. INVITES YOU TO multi task and sell multiple lines. BOOTH 2839 at NYC ENK-SHOW Great ’New’ Office Space Avail Must have experience in the Bridal Must be energetic, organized and ADAMS & CO. 212-679-5500 Industry. Also looking for seamstress AUG 3-5, 2008 have a passion for sales, great clothing Seeking Reps with strong business & fitters Please call Laurie 718-980-1900 OUR JEANS ARE RETAILING AND WE and have a strong work ethic. NO clock [email protected] connections. After a runaway success Receptionist/Office Coord. ARE LOOKING FOR A SPECIALTY watchers. Seeking someone with strong in Europe, we are unveiling an exclusive Better Knitwear Mfr seeks entry level, STORE SELLER TO BE BASED IN follow up skills, and a great phone European Collection (Summer ‘09 & self-motivated, flexible indiv. w/strong personality. Salary + commission + Winter ’08) w/Indian flavor for the 1st DESIGNER communication and computer skills. Pls OUR NY SHOWROOM. THIS IS A benefits. Please email res. and sal reqs time in the American mkt. 100% Organic Hot 7 to 16 Girls Sportswear Co look- e-mail: [email protected] to: [email protected] ing for an experienced designer whose POSITION TO MANAGE EXISTING /in-org.fabric. Customers are invited to strength is tops & bottoms& must be ACCOUNTS AND GROW THE view top class designs at the best prices, able to make first pattern. Fax resume to BUSINESS WITHIN. IF YOU HAVE [email protected], 214-474-3677 212-268-4920 email: [email protected] SALES EXECUTIVE www.indiled.com SOURCING MANAGER TO...... $150K A MINIMUM OF 3 YEARS EXPERI- Great Opportunity !! Design Home Furnishings A MUST ! ENCE IN PREMIUM DENIM, Est Womens Apparel Co seeks an exp’d Jennifer Glenn SRI Search 212-465-8300 AND WOULD LIKE TO JOIN OUR motivated Sales Exec for Budget/Moderate Senior Fashion Designer [email protected] price Missy/Plus size, Woven & Knit Well known established contemporary www.srisearch.com SUCCESSFUL TEAM: women’s collection seeks talented, related separates, Casual & Active focused, driven designer w/ 4+ yrs wear. Must have existing relationships CAD-GRAPHICS-FABRIC PRINTING EMAIL: w/ Discount chains/ Key Retailers & working exp. Ideal person will have [email protected] U4ia-Photoshp-Illustr: 212 679 6400 vast knowledge of contemporary market. Catalog Buyers. Attractive salary & www.sanodesignservices.com We are looking for someone who has comm. Fax/E-mail resume: 212-840-2796 the ability to manage a collection from GREAT SHOWROOM / GREAT [email protected] conception to production. Must be TD Runway Collection Dresses $90-110K BENEFITS/ GREAT COMPENSATION Handbag Contract Work organized, detail oriented and able to Temp to Perm. Hi-end handbags, Patterns, Samples. create and follow a time and action [email protected] or 212-947-3400 NO EXPERIENCE, PLEASE DO SALES Sr. Sweater Designer Made in Brooklyn.“No production is calander. Exp w/ factories in India and NOT REPLY. too small or too big”. 718-625-8969 Importer of ladies suits is seeking a 15+ years experience major retailers other overseas production a +. Travel Trend savvy, very technical, great [email protected] to Europe & India. Pls e-mail resume salesperson with experience selling embellished / MOB and casual suits to sense of color, all aspects of design and salary reqs to: through production, any price point, [email protected] specialty and Department / Chain stores. PATTERN/SAMPLES SALESPERSON Please fax resume to: (212) 869-0246 dependable. [email protected] Garment center location. Professional Fit and Showroom NYC Textile Company seeks /Reliable Quality. Men & women all style. Low Cost. Small production. 212-629-4808 Model / Reception a Salesperson with some ex- Modern American Designer seeks an perience and connections in in-house Fit Model / Receptionist to Subscribe the womenswear market. handle fittings, showroom model and Patterns/Samples/Production front desk duties. 1-2 years experience Salary and benefits. Fax to Full Service, Fine, Fast Work. a plus. Required Measurements are: today! 212) 840-2646 or email to Any Style Size 6; Height – 5’7” to 5’8”; Bust – 36”; [email protected] Call Casey: 212-560-8998 / 212-560-8999 Waist – 27 ½” to 28”; High Hip – 35”; Low Hip – 38”. Please forward resume Call 800.289.0273 to: [email protected] PATTERNMAKER PATTERNS, SAMPLES, New York based children’s wear manu- for individual facturer seeks patternmaker for spe- PRODUCTIONS Operations Manager cial occasion and casual dresses. Indi- All lines, Any styles. Fine Fast Service. Luxury apparel company is looking for Call Sherry 212-719-0622. subscriptions or vidual should be highly skilled in an Operations Manager to coordinate draping and construction with a mini- shipping, allocations, logistics, charge- mum of five years experience. backs, compliance with shipping email Responsibilities include first pattern PATTERNS, SAMPLES, standards, documentation & customs. through production and supervision of Ownership of all areas relating to the sample room. Please send cover PRODUCTIONS wholesale, retail & shipping & inven- [email protected] letter w/resume and salary history to: Full service shop to the trade. tory management. Please send your re- [email protected] Fine fast work. 212-869-2699. sume to: [email protected] MAKE an IMPRESSION

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