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A New Reign New a Percent To359.70 ▲ BEAUTY: ▲ RETAIL: ▲ MEDIA: A Q&A Kenzo Magazine newsstand with opens its sales slide in fi rst half, Frédéric largest page 13. Fekkai, store in page 6. Paris, page 12. ▲ BEAUTY: Van Cleef & Arpels launches another fragrance, Féerie, page 4. Women’sWWD Wear Daily • The Retailers’FRIDAY Daily Newspaper • August 8, 2008 • $2.00 Beauty A New Reign By dubbing it I Am King, Sean Combs leaves no doubt as to his expectations for his latest men’s fragrance, due as a Macy’s exclusive in December before rolling out to wider distribution in February. Industry sources estimated that the scent could do upward of $100 million globally in its fi rst year on counter. For more, see page 5. No Fireworks in July: Dow Falls as Stores Report Weak Comps By Alexandra Steigrad Retailers in July clearly felt the impact of the economic downturn, raising concerns over this month as stores get serious about back-to- school and fall selling. Wal-Mart Stores Inc. set the tone, missing analysts’ estimates with a 3 percent same- store sales gain in its U.S. discount stores in July and tempering expectations for August with a projection of a 1 to 2 percent gain in the critical retail metric. Even Wall Street caught the chill Thursday. With retail sales sluggish and crude oil rising on Thursday, the Dow Jones Industrial Average fell 224.64 points, or 1.9 percent, to 11,431.43, while the Standard & Poor’s Retail Index fell more sharply, contracting 2.1 percent to 359.70. See Weak, Page11 PHOTO BY PASHA ANTONOV; STYLED BY DANILO MATZ DANILO STYLED BY ANTONOV; PASHA PHOTO BY 2 WWD, FRIDAY, AUGUST 8, 2008 WWD.COM Polo Meeting Stresses Continuity By Vicki M. Young Berman, the portfolio manager, questioned the quality and discounting of American Living at WWDFRIDAY NEW YORK — Age was an issue at Polo Ralph J.C. Penney, suggesting it might have been a bet- Beauty Lauren Corp.’s annual meeting here Thursday. ter program with the retailer’s former chairman A day after reporting stellar fi rst-quarter re- and ceo, Allen Questrom, at Penney’s helm, rath- GENERAL sults, the company conducted its 11th annual er than current chairman and ceo Myron “Mike” meeting at the St. Regis Hotel, with chairman Ullman 3rd. 1 With the benefi ts of tax-rebate checks exhausted, and chief executive offi cer Ralph Lauren striving Lauren fi rmly retorted, “American Living is retailers struggled to make their numbers in July, to make his presentation anything but formulaic a terrifi c line. We’re proud of it. J.C. Penney is a Alterna’s and August doesn’t promise to be better. Color Hold while having his patience tested by some of the great company. J.C. Penney needs product that The Warnaco Group Inc. saw earnings rise 41 Spray 2 usual shareholders. we can make. Anytime you have new product, you percent in the second quarter, to $19.4 million, Harry Korba, an individual shareholder, and [need time to] learn. This is a tough economy all Leave-in driven by international growth at Calvin Klein. Philip Berman, a portfolio manager, took turns over the place. I’ve done a lot of shopping and Conditioner. asking a wide range of questions. Korba, who walking all these stores.” 5 BEAUTY: Sean “Diddy” Combs knows he might opened the Q&A session with one about where Berman pushed again about J.C. Penney on raise a few eyebrows by calling his latest scent I the meetings for the board are held, prefaced his additional issues, such as how much American Am King, but he doesn’t care. remarks by noting that Lauren is 68 years old. Living product would be showcased at the retail- The professional hair care world is gearing up for a The designer retorted good-naturedly, “Do er’s upcoming Manhattan location. ▲ 10 slew of new launches to excite consumers during you have to mention my age all “I’m not sure why you keep the time?” That comment drew referring to J.C. Penney con- the last half of the year. some laughs from the crowd of Ralph tinuously,” the ceo said. “The 12 With a high-powered retail neighbor — Louis roughly 100 attendees, about 30 Lauren economy is challenging right Vuitton’s largest store in the world — Kenzo of whom were connected with now. It will be good again…. opened its biggest unit on Paris’ Avenue George V. the company, including Jerry We work with great companies, Showing momentum on the eve of the Olympics, Lauren, Jackwyn Nemerov, great retailers. I’m not here to 14 Puma posted a 0.9 percent rise in second-quarter Buffy Birrittella, Wayne defend anybody. There’s noth- Meichner, Scott Bowman and ing to defend. We focus on our net income to $71.3 million. Bette-Ann Gwathmey. business. We’ve had great suc- 14 A Canada judge awarded Louis Vuitton Malletier The age question was also cess. It’s been a challenging the largest payout in a trademark counterfeiting directed, although more subtly, year. Most are not doing well. and copyright suit in the country’s history. at Roger Farah, Polo’s 55-year- We’re doing amazingly well.” old president and chief operat- Berman also asked about Classifi ed Advertisements............................................................................................15 ing offi cer. However, Berman’s the bundling of candy from query about when Farah, who is Lauren’s daughter Dylan TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS also on the boards of Aetna Inc. Lauren’s store, Dylan’s Candy [email protected], USING THE INDIVIDUAL’S NAME. and Progressive Corp., is “plan- Bar, with Polo fragrances sold WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. ning to retire” didn’t elicit a at Lord & Taylor and Sephora. VOLUME 196, NO. 30. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with response. Lauren told the port- Lauren said his daughter “runs one additional issue in January, October and December, two additional issues in March, April, May, June, August and folio manager, “He’s one of the her own company. She asks me November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services most talented in our industry to taste her candy occasionally. provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. and we’re lucky to have him.” She sometimes asks me for ad- Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice Lauren thanked Farah for vice, [but] she makes her own President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. his contributions to the company, saying how his decisions….When she goes public, you can ask Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B talent and knowledge have helped position the her all the questions.” 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA company to grow both here and abroad. Korba queried why non-executive directors 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please The 45-minute meeting began shortly after 9:30 who can “afford it” get discounts to shop at the write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed a.m. with security extra tight this year. Guests Polo stores but shareholders don’t. Lauren point- within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S were asked to check briefcases, and signs were ed out that the board members “work very hard WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 posted stating electronic equipment such as cam- for the company. They hold premier spots in their or fax requests to 212-630-4280. Visit us online at 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 eras and tape recorders were not allowed in the fi eld, and they help the company. They well de- companies that offer products and services that we believe would interest our readers. If you do not want to receive meeting room. serve [the discount] and they deserve a lot more these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call The chairman, wearing a black suit and look- than what they’re getting.” 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, ing svelte and well rested, returned this week Farah added that the suggestion to give share- PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, from a monthlong vacation.
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