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REVAMPING DKI RETAIL/2 FASHION’S ROMANTIC EVENING/8 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • October 31, 2005• $2.00 Accessories/Innerwear/Legwear Trick or Chic NEW YORK — Candy apples and miniature chocolate bars may please the kids on Halloween, but it’s accessories that delight the grown-ups all year round. For spring, designers have created a smorgasbord of spooky treats, such as, clockwise from right, Sonia Rykiel’s patent leather cat bag, Kate Spade’s raffia clutch, Gabriella Kiss’ bronze and diamond spider brooch, Lizzy Scheck’s gold and diamond necklace, a sterling and blue topaz necklace from Giles & Brother at Metropolitan Design Group and Dior Fine Jewelry’s gold and diamond ring. For more on All Hallow’s Eve, see pages 6 and 7. Prada’s Five-Year Plan: Profits Seen Rising 23% a Year to 2010 By Amanda Kaiser the next five years, while its sales summer and which it released to NEW YORK — Prada is thinking big will increase by an average of 3.2 WWD last week. about its future. percent annually, reaching 1.51 The growth will come from The Italian luxury goods firm is billion euros, or $1.83 billion, by increased focus on the core brands projecting its profits will grow by an 2010, according to a document of Prada and Miu Miu, as well as average of 23.5 percent a year over Prada issued to bankers over the See Bertelli, Page 24 PHOTO ROBERT BY MITRA; FASHION ASSISTANT: ALESSANDRA STYLED BULOW; BY SHOSHANNA FISCHHOFF 2 WWD, MONDAY, OCTOBER 31, 2005 WWD.COM Aronsson Details DKI Growth Plan By Sharon Edelson The new DKNY Las Vegas WWDMONDAY unit is a prototype for Accessories/Innerwear/Legwear NEW YORK — Less is sometimes more, as Donna future stores. Karan International has learned. FASHION After living through management changes, a The Halloween spirit has taken a bite out of designers and retailers, and the public stock offering, disappointing financial re- 6 proof is all over Gotham City, making the holiday as stylish as it is spooky. sults, an acquisition by LVMH Moët Hennessy Louis Vuitton and persistent speculation that it’s for sale, DKI has slimmed down and toughened up. GENERAL “We have a strategy for future growth and prof- Prada is projecting profits to rise by an annual average of 23.5 percent in the itability,” said chief executive officer Jeffry 1 next five years, and sales to increase 3.2 percent a year to $1.83 billion. Aronsson. “We want to take what’s been a cash drain Donna Karan ceo Jeffry Aronsson said the firm has trimmed distribution to and turn it into a cash cow.” focus on key locations, leading to a 20 percent gain in full-price sales. As part of that strategy, it closed at least 70 under- 2 productive points of sale, including in-store shops, EYE: Sheryl Crow and Lance Armstrong were like a pair of high school outlet stores and other strategic partnerships. These 4 lovebirds at the dinner to fete the release of Crow’s new album, “Wildflower.” units comprised about half of the firm’s third-party of the long walls with views of the New York skyline. Celebrities and fashion stars gathered at Cipriani 42nd Street Thursday distribution, including 15 DKNY outlet stores and The prototype’s first incarnation will bow on 8 night for Fashion Group International’s Night of Stars. two full-price units. Thursday at the Forum Shops at Caesars Palace “We have emerged with a dramatic improve- in Las Vegas, followed by a flagship at the Ala INNERWEAR: Frederick’s of Hollywood cinched up the opening of its ment in operating results,” Aronsson said. “We Moana Center in Honolulu later in November. 14 Hollywood flagship with record corset sales at its Lingerie Art Auction. looked at stores that were not productive or not in The beauty of the new store design, said Classified Advertisements ..................................................................25-27 the right location.” Almost all of the shuttered out- Aronsson, is that it reflects the DKNY brand propo- let stores were in malls. sition, which is about “flexibility, starting with a To e-mail reporters and editors at WWD, the address is Aronsson said trimming the distribution has al- foundation and layering unexpected combinations [email protected], using the individual’s name. lowed the company to focus on its best locations, like metals, irons and woods. The presentation of WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 which in turn has led to a 20 percent increase in full- the merchandise shows the multitude of mix-and- FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 190, NO. 94. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one price sales. match possibilities and is geared toward multiple additional issue in June, July and November, two additional issues in April, May, August and December, and three additional While he declined to discuss sales volume, unit transactions.” issues in February, March, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. sources said the DKNY division, which consists of Aronsson is first revamping freestanding and in- Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and C.O.O.; Jill Bright, sportswear, accessories, jeans, fragrance, home, li- store shops with the new design outside of New York Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; David Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice President_Chief censing and retail, has sales of about $1.7 billion. to get out the kinks and fine-tune it. Then it will be Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance Magazine Group Vice On Oct. 18, LVMH released its third-quarter sales. ready for its debut “with cymbal clashes on Madison Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Finance director Jean-Jacques Guiony described Avenue,” he said. The prototype was introduced at Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: third-quarter sales for DKI as “flat,” and said that Selfridges in London and will soon bow at Harvey DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE further reductions in the outlet channel dented Nichols in London. It eventually will be deployed to INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; strength in retail, licensing and the DKNY line. DKNY’s 32 existing in-store shops around the world. or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one Aronsson said, “We’ve drastically cut off-price sales, DKI has big plans for DKNY in the Far East. year $145. All other U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one but we’re increasing our full-price sales. Our de- Aronsson said he waited until he saw the brand’s year $595. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For sired brand-building sales have increased.” sales results in Hong Kong trending positively be- permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: Of course, these initiatives are not new for DKI. fore negotiating any deals. “In May we had a comp- www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would The company in the past has talked the same talk of sales increase in excess of 50 percent,” he said. “It’s interest our readers. If you do not want to receive these offers and/or information by mail and/or e-mail, please advise us at improved quality and better timed deliveries. “It been sustained because the product Mary [Wong, P. O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED started three years ago and we have completed it,” president of DKNY] is producing keeps getting bet- MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND said Aronsson, who has been with the company for ter and better.” TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED two years. This time, there’s the added element of a There are plans to open two DKNY stores in the TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE new store prototype, which Aronsson billed as a spring in China, with three more stores coming at ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID.

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