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Block Three Times STATEMENT SEEKING PIECES ANSWERS THE AMERICAN STAR DIAMONDS, SAPPHIRES AND A NEW BOOK EXAMINES MADE IN THE USA AND THE AMERICAN EMERALDS STOOD OUT THE TORTURED LIVES MARKET’S STRENGTH WERE THE FOCUS AT THE IN THE FINE JEWELRY AND CREATIVITY OF LEE NEW YORK TEXTILE TRADE SHOWS. PAGE 6 COLLECTIONS UNVEILED ALEXANDER MCQUEEN DURING PARIS COUTURE WEEK. AND JOHN GALLIANO. PAGE 10 PAGE 4 AND 5 SERIES OF BUMPS Alibaba Under Pressure, But Ma Remains Upbeat By CASEY HALL and ELLEN SHENG JACK MA ISN’T worried. While a looming lawsuit, recent regulatory ker- fuffl e and lower-than-expected third-quarter earn- ings have many people wondering whether some of the shine has come off China’s e-commerce golden TUESDAY, FEBRUARY 3, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY child Alibaba, its founder and chief executive offi cer WWD remains upbeat. This, despite the fact that last week the company saw its market capitalization dive by $25 billion in a single day when third-quarter earn- ings fell short of Wall Street estimates. Revenue at the world’s largest e-commerce company rose 40 per- cent to $4.22 billion in the December quarter, short of the average estimate of $4.45 billion from analysts polled by Reuters. To Ma, things like the lawsuit, fi led in New York, present an opportunity to let the West better under- stand Alibaba’s business — and China. Block “We need to face it. We welcome it. It’s not a bad thing. This is an opportunity to show the West how Alibaba and China work,” he said in a talk in Hong Kong on Monday, adding that the Web giant’s legal team can handle it. Three The 23-page complaint that was fi led in Manhattan federal court Friday claimed Alibaba had violated securities laws by not raising regulatory concerns fl agged in a July meeting that company offi cials had with Chinese regulatory authorities. The suit was fi led Times against the company and named some offi cers as code- fendants, and came a day after Alibaba was slammed As he stamped c’est fi ni on by Chinese regulators in a “White Paper” released by the drawn-out pre-fall 2015 the State Administration of Industry and Commerce schedule, Louis Vuitton’s Nicolas (though the paper has since been removed from the SAIC’s website). The central government in Beijing Ghesquière took inspiration from had revealed in November a renewed focus on fi ghting the season’s go-to decade, the intellectual property rights violations and counterfeit Seventies, interpreting bohemian goods, and recent actions undertaken by SAIC show chic in lightweight layers. Key SEE PAGE 12 to the collection: a fl uid dress in three variations of silk crepe, worn over a ribbed From D&G to Lands’ End: turtleneck and paired with Marchionni Named CEO printed velvet COLLECTIONS ankle boots. PRE-FALL By DAVID MOIN For more, see IN A SURPRISING pairing, Lands’ End, a casual page 5. 2015 brand with an Americana appeal, has tapped Federica Marchionni, a European luxury executive who dresses to the nines, as its next chief executive offi cer. The announcement Monday raised eyebrows across the industry, given Marchionni’s image and her experience. It’s her fi rst ceo role, and a leap from her current job as president of Dolce & Gabbana USA. That business is estimated at between $100 million and $200 million in sales, whereas Lands’ End gener- ates more than $1.5 billion in revenues. Marchionni will succeed Edgar Huber as Lands’ End ceo on Feb. 17. Huber is expected to soon take a new job, in the retail and digital sector, possibly linked to a private equity fi rm. He was not available for comment. Huber’s biggest accomplishment at Lands’ End was April’s spin-off of the brand from Sears Holdings Corp. into a freestanding public company listed on the Nasdaq exchange. Sears bought Lands’ End for $1.9 billion in 2002. Huber, a former Liz Claiborne Inc. executive who had headed the Juicy Couture brand after a career spent mostly in the beauty busi- ness, had been ceo of Lands’ End since 2011. He’s also credited with making digital growth at Lands’ End a priority, as well as elevating the quality of the collec- tion; expanding the product range, including initia- tives in swimwear and launching activewear, and add- ing fi nancial disciplines. In the fourth quarter, the company experienced some fashion misses, weakness in cold-weather products, and PHOTO BY DOMINIQUE MAÎTRE SEE PAGE 2 2 WWD TUESDAY, FEBRUARY 3, 2015 WWD.COM Lands’ End Turns to D&G for CEO THE BRIEFING BOX {Continued from page one} urbane, and she dresses formally.” unfavorable currency exchange rates. Its steadily di- Josephine Linden, non-executive chairman of IN TODAY’S WWD minishing presence in Sears stores contributed to a Lands’ End, described Marchionni as a “multital- revenue decline. The company expects earnings for ented, visionary business leader with a complete the quarter ending Jan. 31 to decline to a range of $1.06 set of creative, strategic and analytical skills to to $1.16 a diluted share, down from $1.44 in the prior grow a multichannel apparel brand in a highly Karolina Gorzala year, and overall revenues to decline to between $505 competitive and evolving global environment.” is the subject of million and $515 million from their year-ago levels of Increasingly, retail brands have been making out- Model Call. $530 million. The consensus estimate was for earnings of-the-box hires, partly to bring fresh perspectives, For more, see of $1.38 a share on revenues of $542.2 million. The fi rm partly due to the industry’s lack of talent. WWD.com. does expect improvement in its fourth-quarter gross Lands’ End said while Marchionni was at Dolce margin — to between 43.8 percent and 44 percent from & Gabbana USA, revenues increased signifi cantly, 43.7 percent in the 2013 period. and she oversaw several key “The quarter was diffi cult openings — including the but the year was not so bad,” Federica Fifth Avenue flagship and said a fi nancial source close Marchionni units in Toronto, Chicago, to the company. “The two most Aspen and Boston. Earlier, diffi cult areas were currencies she was a global group di- and the business at Sears.” rector at Dolce & Gabbana, “With the successful leading business develop- completion of the spin-off ment for business units in OF WOMEN/360 MANAGEMENT PHOTO COURTESY of Lands’ End.…I have ac- more than 100 countries. complished what I came to Marchionni was also senior achieve at Lands’ End and vice president at the Ferrari I look forward to the com- division of Dolce & Gabbana. A looming lawsuit, recent regulatory kerfuffl e and lower-than- pany’s success in the future,” She joined the company in expected last-quarter earnings have many wondering whether Huber said. 2001. Earlier, she held prod- some of the shine has come off of Alibaba. PAGE 1 Sources noted that Huber uct marketing and sales jobs had been thinking of leaving at consumer technology and America’s ears were ringing at the recent Première Vision Lands’ End, which is head- telecommunications com- New York and Texworld USA trade shows held at Pier 92 and quartered in Dodgeville, panies such as Samsung, Jacob K. Javits Convention Center. PAGE 1 Wisc., for some time to return Phillips and Ericsson. She to the East Coast, and that has a master’s degree in Via a partnership with Brand Assembly, YouTube Space is working under the Sears um- business administration hosting “The New Class,” a series of presentations that will be brella for about two-thirds and management from La held for six clients, during New York Fashion Week. PAGE 8 of his tenure until the brand Sapienza University of Rome went public last spring was and once taught a two-year Lululemon Athletica founder Chip Wilson has resigned course on brand expansion challenging for him. Lands’ from the company’s board, but will retain his stake in End said he resigned. and extension at Marangoni the yoga apparel fi rm. PAGE 8 Marchionni’s challenge Fashion School. Marchionni will be to continue to improve the product and was not available for comment Monday. brand image, and further digital and international Her appointment follows boardroom changes President Obama proposed opening new markets for U.S. growth. Due to its presence at Sears stores, Lands’ at Lands’ End late last year. Linden, a princi- exports and strengthening defenses against cyber attacks in the End has long held back from rolling out its own pal of Linden Global Strategies LLC, succeeded federal budget blueprint he submitted on Monday. PAGE 9 stores, but could decide to in the future. Elizabeth Darst Leykum as chairman. Leykum re- As president of Dolce & Gabbana USA, mains a director and became chair of the nominat- Max Mara’s new architecture-focused boutique in the Miami Marchionni was most involved in the wholesale ing and corporate governance committee. Edward Design District is another testament to the city’s rise as a distribution and retail sides of the business. “She’s Lampert, chairman and ceo of Sears, is neither crossroads for culture. PAGE 9 very intelligent and represented Dolce & Gabbana a director nor offi cer of Lands’ End, but by vir- very well,” said a retail source. “But it may be tue of his personal holdings and those through Dana Thomas’ new book, “Gods and Kings: The Rise and Fall tough for her living in Wisconsin.
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