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Color of Relief

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Color of Relief 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. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January and December, two additional issues in March, May, June, August, October and, November, and three additional issues in February, April, 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 provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Adidas Profi ts Surge 22 Percent Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice 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. Canada Post: return By Emilie Marsh age exchange rates for the three- down 2 percent in the period, or undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: month period, from 244 million 8 percent in euro terms. SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA PARIS — Flexing the synergies euros, or $309.9 million, a year Hainer said Reebok limited 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE of Adidas with its recently ac- earlier. Meanwhile, sales in the its footwear production in order INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit quired Reebok arm helped push quarter slipped slightly to 2.94 to reposition the brand at a www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new up Adidas AG’s third-quarter billion euros, or $4.04 billion, higher price point. The brand’s subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production profits 22 percent. from 2.95 billion euros, or $3.74 sales are expected to increase in correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, The German activewear giant billion, a year ago. Sales in the 2008. “We are continuing to re- please call 212-630-4274 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 beat analysts’ forecasts and said U.S. slipped 8.9 percent. alize material net benefi ts from available to carefully screened companies that offer products and services that we believe would interest our readers. Thursday it’s on target to meet Gross margins increased 3.6 the Reebok integration process,” If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA profi t goals for 2007. percentage points to 48.6 per- Hainer said. “Our group’s strong 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, “Our group is set for contin- cent. Order backlogs for the margin and earnings improve- OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, ued growth in the rest of 2007 and Adidas brand, which analysts ments refl ect our focused com- BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED beyond,” Herbert Hainer, chair- follow as a key indication of fu- mitment to drive long-term sus- MATERIALS.
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