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Going Shear Going Shear NEW DISTRICT MARANT’S LOUIS VUITTON OPENS A STORE IN THE COMING TO MIAMI DESIGN DISTRICT. PAGE 10 MANHATTAN ISABEL MARANT GETS AMERICA THE WINDOWS AT ISAIA WILL UNVEIL ITS FIRST TWO THE BARNEYS NEW STORES IN THE U.S. YORK FLAGSHIP. THIS YEAR. PAGE MW8 PAGE 5 WWDTHURSDAY, APRIL 9, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY PENT-UP DEMAND As Spring Temps Rise, So Does Retail Outlook Going second-quarter profi t preview that By ARTHUR ZACZKIEWICZ “you’d have to be living under a rock not to know about the tepid ex- A STRONG U.S. dollar, the lingering pectations.” The Estimize.com con- impact of the West Coast ports shut- sensus expects the accumulative down and lousy weather in March average profi ts of the S&P 500 to Shear are expected to weigh-down profits show a decline of 1.5 percent year- of public companies in a variety of over-year and said “this would be industries — but retailers may get the lowest growth rate since 2009.” some spring in their step at last as The topline is also pegged for pent-up demand and higher con- a decline — about 1 percent down sumer confidence buoy the sector. from the same period last year. Analysts and economists are That said, Estimize.com noted essentially writing off the first there’s strength in the consumer quarter for retailers, saying better discretionary sector “with earnings times are ahead. Meanwhile, one growth expected to hit 15.4 percent analyst sees retail going through and revenues of 7 percent.” Within a “major transformation” and the this area, specialty retail — which innovators are from an unlikely includes apparel retailers — is ex- channel: department stores. pected to post an average earnings On the broader earnings front, gain of 19.4 percent. Estimize.com, which tracks all In a separate research report, sectors of the S&P 500, said in its SEE PAGE 5 Donna Karan and Parsons Link on Program in Haiti for Haitian artists in Port-au- By ROSEMARY FEITELBERG Prince. Whether showing off oversize leather necklaces, to- NEW YORK — In the soothing, bacco leaf vases, papier-mâchè calm of Urban Zen, Donna Karan handbags, a yoga mat bag made was a whirlwind of energy, darting from recycled T-shirts or intri- around the precisely appointed cate iron-work designs, Karan space with boundless enthusiasm had a one-size-fits-all descrip- as she pointed out the details and tion: “This is Haiti.” craftsmanship of the numerous She would know, having vis- Haitian-made designs. ited the country multiple times The designer certainly has in the past fi ve years to work with reason for such zealousness, artisans such as Pascal Thearad, having recently partnered with Cookie Villard, Shelley Fox and Parsons The New School for Jean-Paul Sylvaince. The unlikeli- Design to open DOT, the Design, hood of a hip West Village designer Organization, Training Center SEE PAGE 12 Going Shear The shearling coat is the key outerwear piece in the men’s market for the fall season, channeling a retro Seventies Ryan O’Neal in “Love Story.” While the car coat length continues to dominate, many of the styles are updated with utilitarian details and a more sporty silhouette. Here, Neil Barrett’s shearling coat, wool turtleneck, worn with Coach’s wool pants. For more on the shearling trend, see pages MW6 and MW7. PHOTO BY ELI SCHMIDT MODEL: ALEXEY G./ADAM MODELS; STYLED BY ALEX BADIA MODEL: ALEXEY G./ADAM MODELS; STYLED BY 2 WWD THURSDAY, APRIL 9, 2015 WWD.COM P&G Still Weighing Beauty Options THE BRIEFING BOX care unit, cosmetics brands and fragrance business. By EVAN CLARK The potential buyers included Henkel AG & Co., IN TODAY’S WWD Revlon Inc., Unilever, Kao Corp. and Coty Inc. PROCTER & GAMBLE Co. is still looking for the Some brands could also be sold in one-off deals. exit for at least parts of its massive beauty portfolio. Frédéric Fekkai is said to be looking to take advan- The consumer products giant’s chairman and tage of the turmoil of restructuring to buy back his A look from Liseanne chief executive offi cer, A.G. Lafl ey, steered the luxe hair-care brand, which hasn’t fared so well Frankfurt’s new company on a course last year that has it cutting as under P&G’s control. lingerie collection. For many as 90 of its 160 brands. While about 35 busi- A P&G spokesman said: “The brands that we will more, see WWD.com. nesses, including giant brand Duracell, have been retain will be category leaders that are structural- offl oaded, beauty is still hanging in the balance. ly attractive and play to our core strengths. Every “They didn’t get the level of interest that they brand that we plan to keep will be strategic with thought they would,” said one fi nancial source of the potential to grow and create value.” P&G’s efforts to sell off some of its beauty brands. The process will yield a more profi table and eas- “Everybody knows they’re underperforming ier to operate company, the spokesman said. brands, but they’ve asked a pretty rich price.” It’s a complex situation and a sale of the P&G has a sprawling portfolio of brands — from broad swath of the portfolio or a public offering the relatively small Frédéric Fekkai and Max Factor could hinge on how much traction the brands to ones with more than a billion dollars in sales, in- fi nd in the market. cluding Wella, SK-II, Olay and Pantene. During the Citigroup stock analyst Wendy Nicholson said in last fi scal year, ended June 30, net sales at the beauty a recent note to clients that P&G could exit Wella, business fell 2 percent to $19.51 billion. Sebastian Professional, Fekkai, the fragrances That’s a large and diverse business to unwind, unit, CoverGirl and Max Factor. She cited SK-II and even if some brands stay at the company. Clairol as somewhat more remote possibilities. All Sources said Goldman Sachs was hired to both together, those brands represent sales of $7.4 bil- A strong U.S. dollar and lousy weather in March are expected look for buyers for some of the brands and explore lion, according to Citigroup’s reckoning. to weigh down profi ts of companies in a variety of industries — a potential initial public offering of at least part Divestures of just those brands would leave P&G but retailers may get some spring in their step at last. PAGE 1 of the business. That dual-track structure helps still very much in the beauty game, though. P&G keep its options open, and if it can’t negoti- “We believe that P&G remains very much com- Donna Karan partnered with Parsons The New School for ate the price it wants with a private equity or stra- mitted to the beauty business generally, and as Design to open DOT, the Design, Organization, Training Center tegic player, the company can fall back on an IPO. such, will likely not sell its core brands of Pantene, for Haitian artists in Port-au-Prince. PAGE 1 Goldman declined to comment. Head & Shoulders and Olay (even despite the con- Bloomberg News reported that P&G sent out sale siderable challenges in these businesses in recent Chinese consumers and China-based analysts agree that documents to potential bidders for its Wella hair- years,” Nicholson said. Chanel’s worldwide price realignment, which went into force Wednesday, is a positive one. PAGE 4 Converse has entered into settlement agreements with The RealReal Raises $40M in Funding Fila and Iconix Brand Group in a trademark infringement case pending before the U.S. International Trade Commission. PAGE 4 By SHARON EDELSON Isaia is embarking on a store rollout plan that will include the The RealReal authenticates items, inspecting and opening of its fi rst two fl agships in this country this year. The guaranteeing that they are genuine. LUXURY CONSIGNMENT Web site The company operates nine stores around the world. PAGE MW8 RealReal has landed its largest round of fund- ing to date — $40 million — to accelerate growth Jack Mitchell’s arms must be tired — the chairman of toward profitability. Mitchells Family of Stores has been hugging customers for The Series D funding was led by Industry more than a decade already. PAGE MW9 Ventures with other new investors E.ventures Growth, Greycroft Growth and DBL Partners. Louis Vuitton will unveil permanent digs in Miami’s Design Existing investors Canaan Partners and InterWest District that represents the new, modern look of the brand, while Partners are also participating in this round, bring- paying homage to Miami Beach’s architectural history. PAGE 10 ing the company’s total funding to $83 million. The RealReal, which posted revenue of $100 Shinola has unleashed a round of ads focusing on the million in 2014, declined to project a date when Apple Watch that take jabs at the smartwatch’s extensive the business will move into the black, saying only that “the funding will help us get to near-term capabilities. PAGE 11 profi tability.” The cash infusion will allow the site to continue With 3.5 million members, The RealReal has Today, SoulCycle will launch its fi rst app in the Apple iOS its growth while also making investments in long- sold 1 million items since 2011. The Web site, store and a campaign online, #OhAppyDay. PAGE 11 term scalability. which is becoming a cash generator for its con- “This new round of funding will be instrumen- signors, is expected to pay consignors more than tal in allowing us to double our revenue [this year] $100 million from the resale of their luxury prod- ON WWD.COM while driving toward profi tability, both of which ucts.
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