HERMES SALES CLIMB/2 GOING CUCKOO FOR CAVALLI/12-13 Women’sWWD Wear Daily • The Retailers’ FRIDAYDaily Newspaper • November 9, 2007 • $2.00 Beauty Color of Relief Can you do well by doing good? That’s something Lancôme hopes will be the case with a limited edition color cosmetics collection created by one of its spokesmodels, Daria Werbowy. Out in April as a Sephora exclusive, the three- stockkeeping-unit lineup will benefi t Centro Espacial Vik Muniz, a children’s art center in Brazil. For more, see page 7. In Surprise Move, Lauder Taps P&G Executive as Future CEO By Pete Born Procter & Gamble Co., as the an interview Thursday that “my n a seismic cultural shift, the beauty group’s next president and obligation for the next number of IEstée Lauder Cos. Inc. has chief operating officer, with plans months is to prepare the way for reached outside its world of to promote him to chief executive Fabrizio to be successful as our prestige beauty to recruit Fabrizio officer within 24 months. next ceo.” Freda, until recently president William P. Lauder, now the When the board approves Freda, of the Global Snacks division of firm’s president and ceo, said in See Lauder, Page 6 PHOTO BY ROBERT MITRA; STYLED BY MEGAN MCINTYRE MITRA; STYLED BY ROBERT PHOTO BY 2 WWD, FRIDAY, NOVEMBER 9, 2007 WWD.COM Asia Leads Hermès Sales Rise By Miles Socha follow double-digit gains reported recently by Gucci WWDFRIDAY Group and LVMH Moët Hennessy Louis Vuitton. PARIS — In another sign of luxury’s vigor, sales at In a research note, HSBC analysts Antoine Belge Beauty Hermès International rose 12.3 percent in the third and Erwan Rambourg said Hermès’ robust fi gures quarter to 394.7 million euros, or $542.3 million, from and “cautiously optimistic” outlook “demonstrate 351.4 million euros, or $446.3 million, a year ago. that the luxury consumer remains resilient.” GENERAL The Estée Lauder Cos. Inc. has reached outside its world of prestige beauty On a like-for-like basis, and stripping out the They cautioned, however, that a 9 percent slide impact of currency, the increase stood at 13.6 per- in the value of the U.S. dollar since the summer is 1 to recruit Fabrizio Freda as its next president and chief operating offi cer. cent. The results refl ect a pickup in Japan, despite creating serious headwinds for European luxury In another sign of luxury’s vigorous health, Hermès International said a sluggish environment there, and robust demand players, and a “gradual slowdown” is inevitable 2 third-quarter sales rose 12.3 percent to $542.3 million. for silk scarves, ready-to-wear and fragrances, after three exceptional years. particularly the new Kelly Calèche scent. The negative currency trend slashed 54 mil- Flexing the synergies of Adidas with its recently acquired Reebok arm “We are in a positive mood,” said Patrick lion euros, or $74.2 million, off Hermès’ sales for 2 helped push Adidas AG’s third-quarter profi ts up 22 percent. Thomas, chief executive offi cer of Hermès, high- the nine months ended Sept. 30. In the period, Despite a dismal October, promises of cleaner inventories and reiterated lighting a 16.7 percent spike in third-quarter sales revenues totaled 1.12 billion euros, or $1.52 bil- 4 guidance have left analysts feeling calmer heading into the holidays. in the company’s own boutiques. “It’s a signifi cant lion, from 1.05 billion euros, or $1.33 billion, an upturn.…For October, the trend is good.” increase of 6.1 percent. All currency conversions Dior Beauty will open its fi rst freestanding store in North America on The company cited particular strength in Asia were made at average exchange rates for the re- 7 Saturday in Las Vegas at the center of the Forum Shops at Caesars. — excluding Japan — where sales leaped 27 per- spective periods. Donna Karan hosted a few hundred revelers at late husband Stephan cent in the third quarter despite a slowdown in By region, nine-month sales rose 16 percent in 7 Weiss’ West Village studio to launch her new scent, Delicious Night. tourism there. Hermès has stepped up its pres- Europe, 11 percent each in the U.S. and France, 3 ence in the region, recently adding boutiques in percent in Japan and 13 percent in Asia. Hermès Newly public company Ulta has evolved into a full-service purveyor of Hangzhou and Chengdu in China. upped its full-year sales growth targets to 8.5 per- 8 mass, salon and, increasingly, prestige beauty products. In the quarter, perfume sales rose 44 percent; cent to 9.5 percent at constant exchange, with op- Roberto Cavalli at H&M launched Thursday at 200 stores worldwide, tableware, 21.3 percent; silk and textiles, 18.9 per- erating income projected to be fl at due to unfavor- 12 with wildly enthusiastic reaction from customers. cent, and rtw and fashion accessories, 10.5 per- able exchange rates. cent. Sales of leather goods inched up 1.5 percent, Last month, Hermès unveiled an expanded Paris while watches fell 7.6 percent. fl agship on the Rue du Faubourg Saint-Honoré, Classifi ed Advertisements.............................................................15 Thomas noted a 15 percent increase in leather now the largest in the world. Thomas said the unit To e-mail reporters and editors at WWD, the address is fi rstname. bags was dented by weak sales of canvas bags in is “booming.” In the last quarter, Hermés plans to Asian duty free channels, and he blamed weak- open or renovate nine other branches, including a [email protected], using the individual’s name. ness in Japan for the decline in watch sales. renovated location in Lyon, France, and new bou- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT Hermès’ strong numbers, ahead of expectations, tiques in Moscow and Crans Montana, Switzerland. ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 194, NO. 101. 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