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Super Sonic NORTHAMPTON, Mass Page 1 Monday s s EYE: FASHION: Nike launches Gwyneth, new women’s active kate and lifestyle line, page 4. more turn out for chopard, OBITUARY: Jean-louis Dumas, page 20. dynamic and creative former head FINANCIAL: Rise in consumer spending s of hermès, dies at 72, page 10. spurs interest in retail stocks, page 15. Women’s Wear Daily • The Retailers’ Daily Newspaper • May 3, 2010 • $3.00 WAccessories/Innerwear/LegwearWDMONDAY Super Sonic NORTHAMPTON, Mass. — Almost three decades after the launch of Sonic Youth, Kim Gordon is showing no signs of slowing down. On Friday, the rocker will celebrate the opening of her new art exhibit at New York’s KS Art Gallery, which doubles as the book party for “Performing/Guzzling” (Rizzoli). And that’s in addition to her current show at John McWhinnie @ Glenn Horowitz Bookseller and Art Gallery. WWD took a trip up to Gordon’s Northampton house to discuss art, music and Marc Jacobs. Here, the musician wears A.F. Vandevorst’s silk and viscose dress with Maison Martin Margiela’s silk mesh tights and her own boots from No.6. For more on Gordon, see pages 6 and 7. No Longer in Free Fall: Retail Real Estate Sees Slight Signs of Uptick By Sharon Edelson TheRe aRe flickeRs of hope iN the beleaguered retail real estate industry. Vacancy rates are down in several cities and fewer retailers are asking landlords for rent reductions. in san francisco, leases that were on hold for as long as a year are being dusted off and signed, local brokers said. Two mixed-use projects with large retail components are moving forward in chicago. Meanwhile, rents have increased modestly in several Manhattan neighborhoods. still, plenty of indicators point to a painstaking recovery. While the pace of decline in the retail real estate sector has slowed in the last year, vacancies overall continue to rise. according to real estate research firm Reis inc., the U.s. retail vacancy rate in the first See Retail, Page16 PHOTO BY ROBERT MITRA; HAIR BY COREY MORRIS FOR SALLY HERSHBERGER; MAKEUP BY NICO GUILIS FOR CHANEL AT SEE MANAGEMENT; STYLED BY KIM FRIDAY STYLED BY SEE MANAGEMENT; NICO GUILIS FOR CHANEL AT HERSHBERGER; MAKEUP BY COREY MORRIS FOR SALLY MITRA; HAIR BY ROBERT PHOTO BY 2 WWD, MONDAY, MAY 3, 2010 WWD.COM VF Profit Surges 62 Percent By Ross Tucker The company’s second-largest segment, jean- swear, felt the impact of the discontinuation of WWDAccessories/Innerwear/LegwearMONDAY COST CUTS AND A MODEST UPSWING IN “non-core programs” in the U.S. mass business. sales helped VF Corp. boost profits 62 percent Jeanswear revenues dropped 6.8 percent to $622.1 in the first quarter. million from $667.4 million. However, the compa- Net income for the Greensboro, N.C.-based ap- ny did see revenues in Asia spike 40 percent and FASHION parel giant increased to $163.5 million, or $1.46 a management said the European market has shown In the comfort of her Northampton, Mass., home, diluted share, compared with earnings of $100.9 signs of stabilizing. Double-digit growth was also 6 Kim Gordon of the legendary band Sonic Youth, million, or 91 cents, in the same period a year seen in key international markets such as Mexico, talks art and fashion. ago. Earnings per share came in 32 cents South America and Canada. ahead of Wall Street’s expectations. The imagewear segment posted a GENERAL “This is a very good day for VF,” 2.4 percent decline in revenues to 1 There are flickers of hope in the retail real estate Eric Wiseman, chairman and $221.3 million from $226.7 mil- industry as vacancy rates are down in several cities chief executive officer, said dur- lion. Revenues for the sports- and fewer retailers are asking for rent reductions. ing a conference call with ana- wear business unit slid 1.3 lysts on Friday. “It’s a day that percent to $102.2 million 4 Washington was taken over by Hollywood this past we announce record first- from $103.6 million. The con- weekend as the stars descended for the annual Eric White House Correspondents’ Association Dinner. quarter earnings that sur- Wiseman temporary brands division, passed both ours and indus- which includes Seven For All Jean-Louis Dumas, chief executive officer at try expectations, and a day Mankind and John Varvatos, 10 Hermès International from 1978 until he retired in that we increase our full-year jumped 16.2 percent to $104.1 2006, died Saturday at the age of 72. guidance for revenues, gross million from $89.6 million. The margins, brand investment and acquisition of the Splendid and 12 ACCESSORIES: Leveraging growth in the U.S. earnings per share.” Ella Moss brands contributed and in emerging markets, Luxottica posted a 20.8 Revenues for the three months $14 million in revenues. percent rise in net profits in the first quarter. ended April 3 rose 1.4 percent to VF inched up its top-line guid- Cosabella, the lingerie specialist, is launching its $1.75 billion from $1.73 billion. Sales ance for the year and is now looking for s 14 first denim-inspired line of leggings on May 15. improved 1.3 percent to $1.73 billion from revenues to rise 3 to 4 percent instead of the 2 $1.71 billion and royalties rose 8.9 percent to to 3 percent previously projected. EYE $19.8 million from $18.2 million. “As all of us are aware, economic conditions At Chopard’s 150th anniversary party at The Frick The company’s outdoor and action sports are stabilizing, with consumer spending show- 20 segment, home to The North Face, Vans, Kipling ing signs of recovery in the first three months of Collection in New York Thursday night, a beaming and Napapijri labels, led results. Revenues for the year,” said Wiseman. “But given the volatility crowd of blue-chip celebrities perused the firm’s Washed denim- new Animal World collection. the segment were up 9.8 percent to $678.6 mil- and uncertainty of the past year, it’s important to inspired leggings by lion from $618.3 million. The North Face report- keep in mind that we still have three quarters to Cosabella Jeans. ed a revenue gain of 9 percent, while Vans saw a go and the economic recovery remains fragile.” 20 percent increase. — With contributions from Evan Clark Classified Advertisements.................................................................................................19 TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’s NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2010 USTR Report: China Still Counterfeit Leader FAIRCHILD FASHION GROU P. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 199, NO. 93. WWD (ISSN 0149–5380) is published daily (except for Saturdays, Sundays and holidays, with one USTR said intellectual property rights pro- additional issue in January, May, June, October and December, two additional issues in March, April, August, September and By Liza Casabona November, and three additional issues in February) by Fairchild Fashion Group, which is a division of Advance Magazine tection in China is likely to come up at the Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: WASHINGTON — Counterfeiting in China contin- Strategic & Economic Dialogue meeting in June S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional ues to be a severe problem despite years of en- and the Joint Commission on Commerce & Trade mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration gagement with the U.S. later this year. No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P. O . Box 503, RPO West Beaver Cre, China once again topped an annual “priority “Intellectual property theft in overseas mar- Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P. O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: watch list” from the U.S. Trade Representative kets is an export killer for American businesses Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. detailing the enforcement challenges faced by and a job killer for American workers here at Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Office alerts us that American companies over their intellectual prop- home,” said USTR Ron Kirk. your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with erty rights, administration officials said Friday. China accounted for 79 percent of counter- your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be Textile and apparel companies have struggled for feit or pirated goods seized at the U.S. border in mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S years to protect their brands abroad. 2009, according to the report, down from 81 per- WEAR DAILY, 750 Third Avenue, New York, NY 10017. 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