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Wwd-2012-11-14[1] GLOBAL VIEW PALAZZO INTERNATIONAL TRADE SHOWS POWER SECTION II PUCCI OPENS A NEW CONCEPT STORE ON MADISON AVENUE IN NEW YORK. PAGE 6 THE RETAIL IMPACT Saks Cuts Outlook In Wake of Sandy By DAVID MOIN SAKS INC., amid a retail climate getting increasingly WWD precarious and discount driven, has lowered its sales forecast for the fourth quarter, citing the impact of Hurricane Sandy. WEDNESDAY, NOVEMBER 14, 2012 Q WOMEN’S WEAR DAILY Q $3.00 Saks did report gains in third-quarter sales and profi ts, but projected comparable-store sales will be fl at for the fourth quarter while gross margins could be fl at to down 50 basis points. Nor was Saks alone: The TJX Cos. Inc. also on Tuesday projected sales fl at to 1 percent up in November and fl at to 2 percent up in December and January for its Marmaxx Group, com- posed of TJ Maxx and Marshalls, though the off-pricer had a 7 percent comp-store gain in the third quarter. Other retailers, too, are responding to the storm and the macroeconomic forces by stepping up their dis- counting and accelerating Black Friday specials. Noting that many Saks stores were in the path of the storm’s epicenter, Stephen I. Sadove, chairman and chief executive offi cer, told WWD, “As much as 55 per- cent of our business was affected. New York alone is 20 Nat ura l percent. In the Northeast, we saw a substantial drop on the Internet,” because people did not have electricity. Off-5th, Saks’ outlet division, was also impacted, and there was “a high linkage” in business results be- tween stores in New York and those in Florida, which was not hit hard by the hurricane, though families Strokes there worried about relatives up north and therefore didn’t shop much, Sadove said. Brushstrokes, dying techniques and splatters Retail executives have already noticed a surge in of paint have designers at their most artful this price promoting since Sandy, though a few said busi- season. Here, H. Fredriksson’s Monet-inspired ness appeared to be softening even before Sandy hit on Oct. 29, because of consumer concerns about cupro top, worn with Mes Demoiselles’ cotton the U.S. government’s “fi scal cliff ” of tax hikes and crochet poncho, Level 99’s cotton chinos and spending cuts, the debt crisis, the nation’s political Sibilia jewelry. For more on the trend, see divide, and some dire predictions that the economy could revert back to recession. pages 4 and 5. There apparently has not been a post-presidential election lift in retailing. Craig Johnson, president of SEE PAGE 6 FASHION ASSISTANT: DEVIN HERSHEY ASSISTANT: FASHION Thanksgiving Backlash By SHARON EDELSON NEW YORK — Backlash or Big Biz? As more and more retailers unveil plans to open Thanksgiving Day, it’s being dubbed Black Thursday and has the potential to fi re up sales —and stir controversy. NPD chief industry analyst Marshal Cohen said that only 12 percent of consumers take advantage of Black Friday sales, and he estimates that half that number will shop on Black Thursday. “But it’s a very healthy consumer base,” he said. “The early bird gets the proverbial worm. Retailers are saying, ‘I want your wallet when your wallet’s full.’” Stores that opened earlier last year saw sales increase by 22 percent for the Black Friday weekend. “Last year, you had some stores that lost 8 percent if they didn’t ex- tend hours,” Cohen said. “They missed out.” Target on Monday became the latest retailer to say it will open on Thanksgiving — at 9 p.m. — remain- ing open through 10 p.m. or 11 p.m. on Black Friday. The retailer joins Wal-Mart, which is opening at 8 p.m. Thursday, two hours earlier than last year. Sears, which was closed on Thanksgiving 2011, will open from 8 p.m. Thursday to 10 p.m. Friday, while Kmart’s holiday schedule is 6 a.m. to 4 p.m. Thursday, to give people time to eat their meals, reopening at 8 p.m. until 3 a.m. on Black Friday. For the fi rst time, Lord & Taylor’s Fifth Avenue fl agship in New York will oper- ate on Thanksgiving, from 10 a.m. to 7 p.m. Gap Inc. brands will be open long hours on turkey day: Gap will operate from 9 a.m. to 9 p.m.; Banana PHOTO BY GEORGE CHINSEE; STYLED BY KIM FRIDAY MODEL: ANNELOT/IMG; HAIR BY SEIJI AT THE WALL GROUP; MAKEUP BY MISUZU MIYAKE FOR NARS COSMETICS; PHOTO ASSISTANT: SANG HEE MA; FOR NARS COSMETICS; PHOTO ASSISTANT: MISUZU MIYAKE GROUP; MAKEUP BY THE WALL SEIJI AT HAIR BY MODEL: ANNELOT/IMG; SEE PAGE 7 2 WWD WEDNESDAY, NOVEMBER 14, 2012 WWD.COM CFDA Names Fashion Fund Winners THE BRIEFING BOX Christopher Bailey serving as and Alina Silberman; Jennifer By MARC KARIMZADEH the night’s keynote speaker. Fisher, and Wes Gordon. IN TODAY’S WWD Along with mentoring, Chait Past winners of the award are NEW YORK — Greg Chait of The is receiving $300,000 as part Joseph Altuzarra, Billy Reid, Elder Statesman took home the of the award, while the run- Sophie Theallet, Alexander top prize at this year’s CFDA/ ners-up are each taking home Wang, Rogan, Doo.Ri, Trovata Vogue Fashion Fund, while the $100,000 to develop their respec- and Proenza Schouler. runners-up were Jennifer Meyer tive businesses. This was the ninth edition of Maguire of Jennifer Meyer and This year’s other finalists the fund, which was created by Tabitha Simmons. were Suno’s Max Osterweis and the Council of Fashion Designers The winner and runners- Erin Beatty; A.L.C.’s Andrea of America and Vogue magazine up were revealed at a dinner Lieberman; Assembly New to help emerging talents with a gala at Center548 in Chelsea York’s Greg Armas; Giulietta’s combination of a cash prize and on Tuesday evening, with Sofia Sizzi; Illesteva’s Justin a mentorship program involving Burberry chief creative officer Salguero, Daniel Silberman industry leaders. Kors Income Up as Sales Surge Street style at Kiev’s Fashion Days. $471 million, while PHOTO BY LIANA SATENSTEIN PHOTO BY By VICKI M. YOUNG European sales rose 97 percent to $57 mil- Saks Inc., amid a retail climate getting increasingly precarious NEW YORK — Michael Kors lion. Japan is still in and discount driven, has lowered its sales forecast for the Holdings Ltd. on Tuesday posted development, with fourth quarter citing the impact of Hurricane Sandy. PAGE 1 second-quarter gains on all fronts, sales rising 129 per- from gross margins to net income cent to $5 million in As more and more retailers unveil plans to open Thanksgiving to revenues posted for the period. the quarter. Idol said Day, it’s being dubbed Black Thursday and has the potential to For the three months ended the firm’s travel re- PAGE 1 Sept. 29, net income attributable tail business is “de- fire up sales — and stir controversy. to shareholders more than dou- veloping rapidly” as bled to $97.8 million, or 49 cents tours worldwide are Emilio Pucci unveiled its new retail concept at its new a diluted share, from $31.6 mil- bringing groups to Madison Avenue flagship on Tuesday. PAGE 6 lion, or 22 cents, a year ago. the stores when at Total revenues rose 74.4 per- the airport. Revenues at Tod’s SpA rose 7.3 percent to 749.9 million cent in the quarter to $532.9 million Second-quarter revenues jumped 74.4 percent. The company is euros, or $959.9 million, in the first nine months of the year, from $305.5 million, which include projecting the open- compared with the same period last year. PAGE 7 a 78.2 percent jump in net sales to By category, Idol said the watch ing of 40 to 50 stores in North $513.1 million from $287.9 million. business continues to be “very America during the current fiscal Nov. 11, the newly anointed Single’s Day in China, saw Retail net sales rose 82 percent to strong” for the company since it’s year. Idol said the firm remains on e-commerce sites across the country throw a Sale of the Year $242.3 million, while comparable- a significant part of the retail busi- track to open 10 to 15 stores annu- party for all the singles in front of their computers. PAGE 8 store sales gained 45.1 percent. ness in company-owned stores. ally in Europe. The planned store The results sent Kors’ shares The firm is also putting greater increase for fiscal 2013 for Japan Calvin Klein Collection brought models, bloggers and up 0.9 percent Tuesday to close emphasis on small leather goods. is 10 new locations. the Chinese fashion elite together in Beijing on Monday to at $51.01. In addition, totes seem to be a The ceo said 55 stores saw dis- celebrate the brand’s spring collection. PAGE 8 John D. Idol, chairman and huge category for “young girls,” ruptions from Hurricane Sandy, chief executive officer, told ana- with Idol noting that this consum- and while they have reopened, VF Corp. is feeling confident about its jeanswear business as lysts during a conference call, er is “not only buying a handbag he said many areas “remain chal- margins and profits return to more historical levels. PAGE 8 “Our performance was driven by from us but many times she’s buy- lenged” and it is difficult to pre- continued growth in comparable- ing a handbag and a tote.” dict when the consumer behavior store sales, strong performance As for retail sales growth, Idol would return to normal in those Peter Marino was decorated as a Chevalier de l’Ordre des PAGE 9 of our new stores, successful con- said the business was driven in part affected areas.
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