The Inside: Pg. 12 HERZOG’S EPI-VIEW/5 EXPRESS TO THE 20’S/4 Stores deWWD Force WWDWomen’s Wear Daily • The Retailers’THURSDAY Daily Newspaper • July 3, 2003 Vol. 186, No. 3 $2.00 List Sportswear Chart Topper NEW YORK — MTV VJ Hilarie Burton knows music. And she’s no slouch when it comes to fashion, either. She likes Catherine Malandrino and Michel Perry, but at heart, this 21-year-old is all about jeans, a T-shirt and a sexy pair of heels. Here, at the MTV Beach House in the Hamptons, she wears Madley’s wool, silk and cashmere poncho, Rock & Republic’s stretch cotton jeans and Ugg boots. For more on Burton, see pages 6 and 7.

Gucci’s De Sole Says ‘Perfect Storm’ Causes Net to Plummet 96.6% By Amanda Kaiser MILAN — Everyone thought it was going to hurt, but not quite this much. Sending a shudder throughout the luxury sector, Gucci Group stunned the market Wednesday, barely posting a net profit for the first quarter and showing a steeper- than-expected drop in sales, especially at its core Gucci brand. Still, the Italian company is hopeful that things can only get better in the second half of the year. Only a tax benefit enabled Gucci to slide into the black with a net See Gucci, Page13 PHOTO BY TALAYA CENTENO; HAIR BY BETSY REYES; MAKEUP BY KRISTI FUHRMANN; STYLED BY KIM FRIDAY KRISTI FUHRMANN; STYLED BY BETSY REYES; MAKEUP BY CENTENO; HAIR BY TALAYA PHOTO BY 2 WWDTHURSDAY Sportswear GENERAL FASHION: Hilarie Burton, at 21 already one of MTV’s most popular VJs, has ™ 6 a big year ahead. Here’s what’s on tap. Sending a shudder through the luxury sector, Gucci on Wednesday barely A weekly update on consumer attitudes and behavior based 1 posted a net profit for the first quarter and showed a steep sales drop. on ongoing research from Cotton Incorporated WWDList: The 15 high-end apparel and accessories labels with the

WWD, THURSDAY, JULY 3, 2003 JULY WWD, THURSDAY, 12 greatest number of freestanding stores worldwide. SHORT AND SWEET Architect Jacques Herzog discusses his inspiration for Prada’s Epicenter The miniskirt: It’s baa-ack! 5 store in Tokyo and how Prada’s competitors are already trying to copy it. WWD will not be published on Friday, July 4, in observance of Independence Day. The customers at Sloan Boutique in Charlotte, Roi has become famous in fashionista circles for North Carolina, are of two camps: those who will, her “pouf” skirt, a skirt that is gathered, with a puffy, Classified Advertisements...... 15 and those who won’t… try on the store’s latest crop turned-under hem. To e-mail reporters and editors at WWD, the address is of miniskirts, that is. “I did two versions, one was a mini and the other [email protected], using the individual's name. “A lot of women come in and say they’ve one was a little longer, for evening wear,” she says. SUBSCRIPTION RATES U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. worn them when they were popular last time, “The mini sold and the evening version did not. I All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. Please allow 6-8 weeks for service to start. Individual subscription information/Single Copy Sales : (800) 289-0273; and they don’t want to wear them again,” relates think that’s an indication of where things are headed.” outside U.S. (818) 487-4526; new group subscription information 212-630-4196 Postmaster: Send address changes to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. Jill Sloan, co-owner, along with Roi’s summer and fall collec- WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional tions also include mini suits with a issue every month except July, and two additional issues in April and August, by Fairchild Publications, Inc. sister Courtney, of the hip a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. shop. “But our younger cus- cropped, short-sleeved jacket and a WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., a subsidiary of Advance Publications Inc. All rights reserved. tomers are wearing miniskirts matching A-line miniskirt, a mini No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage or retrieval system, except as may be for the first time.” flounce skirt with a thick, three- expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 Periodicals postage paid at New York, NY and other offices. The miniskirt was first pop- inch waistband, and evening minis Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9 GST # 88654-9096-RM 0001 Canada Publications Agreement # 40032712 ularized in the mid-1960s, in taffeta and velvet. Printed in the U.S.A. during the height of the sexual “In the past, the miniskirt was All signed articles published in the paper represent solely the individual opinion of the writer and not those of WOMEN’S WEAR DAILY. revolution, although there’s still a seen as novel, and almost risky,” For Web site access, log on and subscribe to www.WWD.com. controversy regarding whether it says Roi. “Now, it’s more of a state- “We have incorporated the was Mary Quant or Andre Cour- ment; it means you follow fashion miniskirt length into our reges who invented the short and you’re a trendsetter.” suitings, and are selling a lot skirt. It reappeared during the Wearing a miniskirt “isn’t as big of jackets with minis.” In Brief 1980s with a body-hugging ver- of a deal as it was in the past,” sion popularized by Madonna, — Rebecca Taylor affirms Connie Maynard, vice ● who paired it with lace tights and Designer president of sales, girls and juniors FLYING LOW: Even though SARS is being contained in Asia, its impact on travel there was worse in May than April, according to ankle boots. And in the 1990s, at Union Bay, where minis are cur- a research report released Tuesday by HSBC luxury analyst working-girl characters played by Heather Locklear rently the most popular skirt length. Antoine Belge. The number of Japanese traveling overseas fell 55 and Calista Flockhart on, respectively, Melrose Place “You’re seeing a lot more miniskirts out there, percent in May, compared with 42 percent in April. Belge wrote and Ally McBeal, wore scandalously short skirts, both in the media and with people wearing them on that he expects a recovery as of June, “but visibility is low on its extent. The perceived safety of travel will continue to be a key with matching suit jackets, to the office. the streets,” says Maynard. At Union Bay, popular driver for the luxury goods sector in coming months,” he contin- This time around, what’s old is new again as designs include cargo styling, utility details such as ued, adding, “it will take time before Japanese visitors feel confi- miniskirts have assimilated some of the current belts and zippers, stretch and rigid denim versions, dent to return to China, Hong Kong and Singapore.” He stated, fashion trends. Designers are incorporating the wide waists, drawstrings, and corduroy fabrications. however, that he’s more optimistic about their traveling to the low-waisted trend made so popular with jeans “Texture is particularly important,” relates Maynard. U.S., Guam and Saipan. and trousers into their mini designs, meaning But can they be worn to work? This might ● GOOD GUESS: Guess Inc. posted a 16.2 percent increase in that although the new minis are a shorter determine whether or not young women jump on comparable-store sales during the month of June as overall retail length—typically between 14 and 17 inches— the miniskirt’s latest revival. According to the Mon- sales for the four weeks ended June 28 rose 24.3 percent to $29.2 they are still considered respectable because they itor, 52% of female consumers ages 16 to 24 say that million. Comps were up 16.3 percent at full-priced stores and 15.8 percent at outlet stores. While pleased with the improvement, hang lower on the hips. their work and weekend wardrobes have pieces that Carlos Alberini, president and chief operating officer, comment- Sloan reports that her boutique is stocking ver- overlap, while 58% in the 25- to 35-year-old age ed in a statement that officials at the firm “remain cautious about sions that have cargo details and buckles. But the group affirm their wardrobes do double time. our overall business, especially wholesale, given the continued bestseller is a miniskirt from Michael Kors, which Designers say there’s a way to pull it off, particu- difficult retail environment and ongoing pressures on margins.” Most retailers will report their June comps on July 10. Total re- comes in white and turquoise cotton, with embroi- larly for women in creative fields. tail sales for the second quarter ended June 28 rose 19.8 percent dered flowers. “It’s very Mexican-looking,” she says. “We have incorporated the miniskirt length to $95.7 million as comps ascended 11.7 percent. Jeff Mahshie, creative director for Chaiken, says into our suitings, and are selling a lot of jackets with ● the miniskirt is the perfect follow- our miniskirts,“ says designer MOVIN’ UP: Evan Davis has been named president of urban I buy clothing on impulse brand Enyce. Davis, 39, along with Tony Shelman and Lando up to the pencil skirt, which has Rebecca Taylor. “You can do a fem- Felix, founded Enyce in 1996, with financial support from Fila. In reigned for the past few seasons. At Ages 16 to 24 34% inine, pretty little suit, perhaps with Ages 25 to 34 33% this new post, Davis, who had been executive vice president, will oversee product design and development, sales, marketing and all Chaiken, the designers are pushing Ages 35 to 55 24% a jacket that has a frilled peplum, or the envelope with novelty styles, is a little more structured. Women other operations for Enyce and Lady Enyce. Enyce is a subsidiary of Sports Brands International, the newly formed holding compa- such as striped velvet, bleached cashmere and a who are not comfortable showing their legs can ny that purchased Fila, Ciesse Piumini and Enyce last month. double-belted pleated denim skirt. wear some great hosiery or leggings.” “That’s what makes it look new and appeal to Mahshie agrees. “In fashion, pretty much any- us,” says Mahshie. “We didn’t do any really straight- thing goes if you work in a creative job,” he says. “In forward, basic looks. If our customer wants an item, the fall, you can wear a miniskirt with opaque stock- Correction it should be luxurious, novel and impulsive.” ings and tall boots. Keep it all in dark colors. If Mossimo swimwear is licensed by Lunada Bay, based in Impulse, indeed, is key for the miniskirt’s you’re going to wear a mini with a heel, then you Anaheim, Calif. The licensee was incorrect on page 56 of the biggest fan: young women with the confidence— should be covered up on top—wear it with a turtle- WWD 100 supplement published June 23. and figures—to pull it off. According to the Cotton neck or a shirt and jacket.” Incorporated Lifestyle Monitor™, female consumers So no matter where it’s worn or with what, one WWDStock Market Index for July 2 ages 16 to 24 are more likely to buy clothing on thing’s for certain – this small skirt will continue to impulse than any other demographic. Of those sur- make a big fashion statement. Composite: 109.81 Broadline Stores: 110.79 Softline Stores: 105.49 veyed by the Monitor, 34% of 16- to 24-year-olds This story is one in a series of articles based on findings said they were most likely to buy clothing on from Cotton Incorporated’s Lifestyle Monitor™ impulse, while only 24% of women their mothers’ tracking research. Appearing Thursdays in these pages, 1.52 2.15 0.01 age, 35 to 55, would do so. each story will focus on a specific topic as it relates to the People were certainly buying on impulse at one American women’s wear consumer and her attitudes Vendors: 109.00 Textiles: 116.57 of designer Alice Roi’s recent sample sales. “I put out and behavior regarding clothing, Index base of 100 is all my old and new minis, and they went like hot- appearance, fashion, fiber selection and keyed to closing prices cakes,” recalls Roi with surprise. many other timely, relevant subjects. of Dec. 31, 2002. ® 0.71 1.11 3 WWD, THURSDAY, JULY 3, 2003 first ’s Evan Clark who have a Davé Cheung ohji Y — The White Stripes , During any given ] a long, long time ago,” rom college and profession- ish Line could have more The Rolling Stones, David Bowie F seeing a tremendous “We’re Branded apparel is not per- footwear side On the larger, “Things have dramatically amamoto ogue’s October-November Young October-November ogue’s Y V Hollywood issue. Slimane ROCK OF AGES: Hedi business and there’s a fan base there, but also there’s a lot of fashion involved in license now exist to this degree.” that didn’t al sports to retro merchandise, lot of different Cohen added, “A things are working.” amount of opportunity in in licensed,” he noted. women’s “This is something that never really existed before, but we’re having some success with some licensed product of the women’s that we’re bringing in and we think that’s going to continue.” forming as well as the firm would like, though private label’s seen success in basics. of the business, Cohen said Fin than 50 percent of its product differentiated from its primary competition in the mall. changed because of what Nike is doing with their new distribu- tion policy in the U.S. and proba- bly changed from our perspec- tive in the most important way,” talking about cer- he said. “We’re tainly launch product, statement product and elite product and that’s, for the most part, the high-end product — especially There just programs like Shox. that many points of distri- aren’t bution going forward in the mall in that kind of product.” and book of photography, “Berlin,” book of photography, won’t hit bookstores for another at month or so, but already he’s out the work on an encore. Turns whose slim Dior Homme designer, up threads have a knack for winding on rock stars’ backs, has been documenting the backstage scene at concerts for some time. He said the book will be focused on the backstage “rituals” associated with a live musical performance. turn Slimane has until November to in his final selections, but among already shot backstage subjects he’s are series of gigs in Paris next week during the couture. SPRING ROLE: fashion week in Paris, can usually be found serving up lemon chicken, tangy spare ribs and hot gossip at his signature Chinese restaurant, a magnet for fashion folk for more than two decades. But during the men’s spring shows, which wrapped up this week, Cheung, known simply as Davé (pronounced Dah-vay), turned the tables and strutted the catwalk in a beige cotton jumpsuit for Spanish designer Antonio Miro. But it wasn’t his first spin on the “I did it for runway. he quipped. “But this time I really felt like a shrimp next to all those tall models.” [ ’s has now shot the inish Line Inc. F , is ready for her Jennifer Lopez Another day, another new Another day, Allegra Pamela Hanson ashion Scoops ashion ootwear comps rose 10 percent Apparel is being driven by Net income shot up 77.9 per- Sales for the 13 weeks ended F Soft goods accounted for 22 “ The licensed business is on “There are a lot of different F rivate label and branded ap- JLo adds finishing touches. MORE JLO: The JLo product category. ubiquitous closeup. York New teenager at the family’s for Teen town house last Tuesday attached her name to cold-weather attached her name a line of JLo by accessories, with Jennifer Lopez hats, gloves and scarves scheduled to make their masterbrand debut this fall. Lopez’s firm, Sweetface Fashions, has signed a licensing deal with Oxnard, to Calif.-based August Accessories produce the line, which will include fabrics and designs that coordinate with the JLo by Jennifer Lopez sportswear offerings. Retail prices are likely to be between $20 and $60, the company said. SAY CHEESE: Donatella Versace daughter, Licensed Apparel Gains Licensed Apparel Surge Line Aid Finish — NEW YORK ran up hefty increases in first- quarter sales and profits as ap- parel grew in importance to the retailer. footwear-focused cent to $6.5 million, or 28 cents a diluted share, from $3.7 million, or 15 cents, a year ago. May 31 climbed 21.8 percent to $207.8 million from $170.6 mil- lion a year ago. Comparable- store sales advanced 14 percent. while same-store sales for apparel and accessories leaped 37 percent. to 23 percent of the Finish Line’s business during the quar- or as much as $47.8 million, ter, up from 20 percent during the previous fiscal year. licensed [merchandise],” said president and chief executive Alan Cohen in a statement. track to make up as much as 60 percent of the firm’s total appar- el business, a larger portion than initially planned, he said. P parel each comprise 20 percent Line’s apparel trade. of Finish things going on in licensed and it’s not just all of us going back after the same thing season after season after season,” said approaching it Cohen. “We’re much more from a fashion per- it’s a team spective. Obviously, 2002, mports lion, accord- odianova in the V sed its exports in trend also acceler- $71 mil ea ncr i Calvin Klein Collection fall ad. TMI also claimed in the ernon said Klein is currently na V The report’s conclusions are Hughes noted that the ATMI A orea and Hong Kong. bus posters and billboards in and Los Angeles, New York and bus kiosks in San Francisco shelters in Chicago, Boston and Miami. There will also be out- door advertising, including bus shelters, subway pillars and bill- the U.K., boards, in Germany, Japan, Taiwan, Spain, Australia, K hunting for a male model to ap- pear in a November campaign for Pro Stretch Under- its new men’s That campaign will be shot wear. by Steven Klein. Chi ing to the ATMI. based on a sharp drop in Chinese prices once quotas on apparel products were removed the average in 2002. Last year, Chinese price fell by 44 percent, declining from $6.23 a square meter to $3.37 a square meter, according to the report. did not mention that many countries have increased their market share in many of these 29 categories where quotas were removed, despite China’s dominance. analysis that $42 billion in ex- port trade is expected to shift to China from Mexico, Central America and sub-Saharan Africa and other nations in two years. the 29 categories by $980 million in 2002, while all other suppliers saw their exports drop by $813 million. The ated in the first quarter of 2003, i when the 29 Chinese rose by $493 million, compared with the first quarter of while imports for the rest of the world by fell odianova, were shot by Mario Sorrenti. The CK Jeans ads, featuring Natalia V ’Uomo na as part of a CK Jeans will also be adver- Outdoor advertising will be a Julia Hughes, vice president “This seems like a political In its analysis, the ATMI According to the report, eople, and will appear in such extiles & Apparel, dismissed ogue and Arena Homme Plus, tised for the first time in Teen P Cosmopoli- titles as Jane, Lucky, tan and Cosmogirl. key component of the fall cam- paign. The media plan includes tions of GQ (U.S., Spain, U.K. and Japan). In the U.S., they will also Harper’s W, Fair, appear in Vanity Elle, Bazaar, Details and Esquire. In Europe, ads will run in L V they will while in South Korea, appear in Esquire. of international trade at the U.S. Association of Importers of T analysis, calling the as- the ATMI sumptions “totally hypothetical.” statement, not an economic analysis,” she said. “They are making draconian assertions and their methodology does not back them up.” studied China’s import growth during the past 15 months in 29 apparel categories, including silk- and vegetable-blend suits, dresses, skirts, woven shirts and knit shirts, as well as cotton and man-made fiber bras and night- where the quota was re- wear, moved in January 2002. on a petition seeking to reim- pose several quotas that were lifted on imports of apparel and textiles from Chi 10-year phaseout set to expire on Dec. 31, 2004. Under terms of Organ- Trade China’s World ization membership agreement, countries can impose category- specific limits for up to one year if Chinese imports are causing market disruption. If China’s un-

Calvin Klein has Calvin Klein

r the year ended April 30, mmel, who started as the The report is the latest move The united effort is working “If China follows the same Fo Specifically, portfolios will be Specifically, Kim Vernon, senior vice pres- Kim Vernon, The fall portfolios, which con- Fi In a departure from Klein’s In a departure TMI Report Sees 630,000 Lost Jobs From China Lost Jobs From Sees 630,000 TMI Report ASHINGTON — ASHINGTON immel is currently filming a TV ravis Fimmel, shot on location ravis Fimmel, extile Manufacturers Institute.

apparel and textile imports from China rose 136 percent to 6.15 billion square meters equivalent and is valued at $10.02 billion. China’s current share of the U.S. import market is 15.27 percent. in a coordinated effort among six textile trade and lobbying groups to pressure the Bush ad- ministration to invoke a special textile and apparel safeguard against China. A By Kristi Ellis W fettered trade continues grow- the ing at the rate it is today, U.S. apparel and textile indus- try stands to lose 630,000 jobs and 1,300 textile plants by 2006, according to an in-house report compiled by the American T pattern in 2005, when the bulk of its quotas will be removed, then China’s share of the U.S. textile and apparel market will rise to over two-thirds of the U.S. market within 24 months,” the report stated. ident of global advertising and communications at Klein, said the fall ad budget is flat to a year ago. According to TNS Media Intelligence/CMR, Calvin Klein Inc.’s media budget for the sec- ond half of 2002 was approxi- mately $10 million for all appar- el and home products, excluding portfolios, fragrances. Fall which range from between four and 10 pages, will appear in 271 fashion and lifestyle publica- tions worldwide: 63 in the U.S., Canada and Latin America, 127 in Europe and 81 in Asia. placed in seven editions of Vogue Germany, Italy, (U.S., France, U.K., Spain, Japan) and four edi- Calvin Klein Underwear model ads in fall 2001, has appeared in divisions, for several of Klein’s including Crave fragrance ads. contract with Klein His exclusive expires at the end of the fall sea- model son. The Australian-born followed in the footsteps of other Calvin Klein Underwear models formerly such as Mark Wahlberg, known as Marky Mark, Antonio Sabato and Michael Bergin. F series, “Tarzan.” bright and bold spring ads, the bright and bold spring ads, CK firm’s fall Collection and Jeans campaigns — shot by Mario and Sorrenti — are a lot darker more dramatic. The company began preparing the campaign Klein early this year just as Calvin its Inc. was being integrated into Phillips-Van Heusen. new owner, ap- nect Calvin Klein Collection parel, accessories and eyewear all with CK Calvin Klein Jeans, and feature Natalia Vodianova T Mah- at the Crocker Mansion in wah, N.J. High Drama at Calvin Klein at Calvin Drama High By Lisa Lockwood — NEW YORK for fall. gotten a lot moodier 4 Taking the Express Lane to Recognition Classified Cosmetics: By Valerie Seckler Starting a New ‘Era’ NEW YORK — Express is poised to let fly with a multilayered marketing campaign aimed at rap- NEW YORK — The company for $40. The oil-free formula idly raising awareness of — and stirring desire that put foundation in an can be used on the face or body. for — the sportswear brand among twentysome- aerosol can is at it again. Era Rayz Spray-On Bronzer thing consumers. Classified Cosmetics has comes in two shades: 1 In The The promotional events will be held in and built on its innovation, Era Sun, for fair to light skin, and 3 around five recently opened, dual-gender stores, Face Spray-On Foundation, By The Sea, for medium to dark WWD, THURSDAY, JULY 3, 2003 JULY WWD, THURSDAY, plus a one-year-old, dual-gender location. The and expanded its offerings to skin. Era Glaze Spray- On events are centered on two major media markets include bronzers and shim- Shimmer also is available in for Express — Miami Beach and Los Angeles — mers, due out in August. two tints: 24 Karat, which pro- and four more that have produced hefty denim The firm launched in Janu- duces a golden sheen intended sales for the 1,027-unit chain: Minneapolis, ary 2002 and was six years in to warm and highlight the skin, Detroit, Philadelphia and Washington, D.C. the making. Yolanda Halston, and Platinum, to illuminate. “The message is we’re cool, we’re in the know and we can tell people where to go that’s cool,” said Pamela Seidman, director of public relations and communications at Express, in speaking of BEAUTY BEAT the upcoming effort. “We’re trying to take the mass sensibility out of the Express brand and lo- Industry sources estimate calize its appeal.” the new products could do up- Primary elements of the marketing salvo include: ward of $4 million at retail in ● Access Only passes given to customers who the first year. spend $75 during promotional weekends at four “There is a big demand for Express stores, which will bring them a pri- them,” said Rodger Halston, co- vate night of shopping with a 20 percent founder and president of the discount and an Access Only pass, styled company. “We launched with like a backstage concert pass, providing foundation in two stores and in entree to a variety of events and pro- Classified Cosmetics’ new offerings. a year and a half we’re all over motions at partner establishments. the world.” Distribution cur- ● Style Lounges on Sunset president and chief executive rently includes 200 stores, such Boulevard in Los Angeles and officer of Classified Cosmetics, as Henri Bendel, the Studio at Washington Avenue in South Beach, created the foundation after Fred Segal and select Nord- where nightcrawlers spotted by several years of self-funded re- strom locations. Internationally, Express scouts will get a chance for a search to address the needs of the products are available in style makeover and new Express clothes post-cosmetic surgery skin. Spain, France, Hong Kong, they’ll get to keep. The lounge comprises an Halston, also a celebrity Tokyo, Taiwan and Australia. Airstream trailer, dressing rooms and a carpeted makeup artist, discovered tra- Future plans include launch- area with couches and music. ditional foundations didn’t ad- ing blush and approximately 16 ● Fashion Moments awarded to customers here well to healing skin and other items during the next spending $75 at either of two Express sites will re- saw a need for a new applica- three years. ceive the chance to star in a photo session where tion process. “There were a lot — Kristin Finn they pose as supermodels, sporting Express ap- of great products, but there was parel and newly styled hair and makeup. a specific need for the most The Fashion Moment sets, to be mounted at gentle method that offers a thin Mall of America in Minneapolis and Lakeside in layer and is oil free,” said Hal- Expanding Horizons Detroit, will be strategically situated at a distance ston. She asked herself: “How NEW YORK — Christopher L. from the recently opened Express stores in those can I get all of those things on Carameros, executive vice pres- venues, in a play to build buzz and drive mall traf- the skin without touching it?” ident of Helen of Troy Ltd., has fic to Express, while visitors to the Style Over and found the answer in the assumed the additional respon- lounges in Miami Beach and Los Angeles will re- aerosol applicator. According to sibilities of chief financial offi- ceive 10 Bounceback coupons intended to spur the company, the foundation cer. In addition to his new du- purchases at local stores with which Express is delivers a fine mist of makeup ties as cfo, Carameros will con- partnering. By engaging in those activities, to the face and provides an air- tinue to oversee the company’s Seidman explained, Express is aiming both to brush finish in seconds. The finance division; international build loyalty and prospect for new customers packaging is contamination sales; the brush, comb and ac- found beyond the chain’s doors. free so it offers a sterile appli- cessories division; and the Participants in the Express Access Only pro- cation that’s good for the skin. newly established Idelle Labs gram include DJ Hut Records, mie n yu restau- “Every time you spray your Division. Russell Gibson, the rant, Visions Cinema/Bistro lounge, and Three visuals from the new Express advertising and face, you get a fresh application company’s former cfo, resigned Washington Project for the Arts/Corcoran in promotional campaign. of botanicals along with a very on June 13 to pursue another Washington; Loring Pasta Bar, The Kitty Kat Club, pretty bronzer or shimmer,” career opportunity, according to No Name Exhibitions@The Soap Factory and Philadelphia, Aug. 2-3, and at the one-year-old noted Halston. The shimmers the company. Gerald J. Rubin, Vital Vinyl in Minneapolis, and cue records and Express at Somerset in Detroit, Aug. 23-24. and bronzers use the same the firm’s chairman, chief exec- DENIM lounge in Philadelphia. With the five dual-gender store openings, aerosol technology as the foun- utive officer and president, said Promotional weekends for the Access Pass pro- Express will operate 49 dual-gender sites, in addi- dation and are available in a a search to appoint a replace- gram will begin at the Express store at The Fashion tion to its 623 women’s units and 355 men’s loca- 1.5-oz. spray bottle that retails ment cfo has been initiated. Center at Pentagon City in Washington, July 12-13, tions. Another 31 dual-gender Express stores are followed by the Express stores at Mall of America slated to bow in 2004. in Minneapolis, July 19-20; Liberty Place in Sales at Express totaled $2.1 billion in 2002. Report Backs Nautica Foes NEW YORK — Nautica Enter- Var vatos and Scherer offer the Olé! Penney’s Names Hispanic Model-Search Winners prises’ fight with a dissident in- best outlook for Nautica share- NEW YORK — After walking the runway to the beat of vestor group received a blow holders,” ISS wrote. “Mr. Varvatos “Oye Como Va,” Willy Vega, 17, of Miami, and Jennifer Wednesday when a prominent has been unable to fulfill his obli- Mejia, 17, of Puerto Rico were selected as the winners proxy advisory firm came out in gations as a member of the board of J.C. Penney’s Hispanic model search, called Modelo favor of the insurgents just days due to company commitments Mundial-World Model 2003, at the Radisson Biscayne before an expected showdown at overseas and Mr. Scherer lacks Bay Hotel in Miami last Saturday. the annual meeting next Tuesday. the retailing, strategic and finan- Vega and Mejia each will receive $10,000 in schol- Institutional Shareholder cial experience that we believe arships, an appearance on Univision network’s segment, Services Wednesday released a the board needs to create value “Control,” a professional photo portfolio and a $1,000 report that supported proposals for shareholders.” Penney’s gift card. of the group, which is led by Nautica countered in a state- Runners-up were Alma-Lucia Andrade, 19, of Barington Companies Equity ment of its own. “Neither of the Phoenix, and Alexis Gueits, 21, of Puerto Rico, who will Partners. The group, which holds Barington Group’s two dissident each receive $5,000 scholarships and a $500 Penney’s 3.1 percent of Nautica’s stock, is nominees…has indicated experi- gift card, among other gifts. The four also will have the asking shareholders to replace ence in the apparel manufactur- opportunity to appear in Penney’s advertising. directors John Varvatos and ing industry or any related in- More than 2,000 students ages 16 to 21 entered Robert Scherer with former dustry,” Nautica said in a state- the model search this spring. Contestants were required Revlon executive William Fox ment, noting Varvatos’ more than to have B averages or better. Because Hispanic youth and Barington chairman James 20 years of experience and represent the highest rate of high school attrition in the Penney’s Hispanic model search winners from left to Mitarotonda. They are support- Scherer’s history as general U.S., Modelo Mundial focuses on contestants’ educa- right: runner-up Alma-Lucia Andrade, Willy Vega, ing reelection of Nautica’s other counsel and later chief financial tional accomplishments and goals. Jennifer Mejia and runner-up Alexis Gueits. six directors. officer of Collins & Aikman. “We do not believe that Messrs. — Thomas Cunningham 5 The Architects of an Epicenter WWD, THURSDAY, JULY 3, 2003

By Greg Lindsay scratch. It somehow has moments which re- mind you of Prada Milan with the bent ow that Prada has opened its $83 glass, or the Simpsons department store in million Tokyo Epicenter store, it can London. Or the bent glass you see in optical Nclaim to be the the only retailer with lenses. Perceiving and looking are much flagships designed by two different sets of more in the foreground than [other] architects who have won the Pritzker Prize, finished stores. Those were never re- the field’s top award. And if the designer of ally in the foreground. Very rarely in the company’s SoHo store, Rem Koolhaas, our architecture do we see something is architecture’s equivalent of a rock star, existing in terms of architecture as a its equally brilliant Tokyo collaborators, model for something we would like to Jacques Herzog and Pierre de Meuron, do. Rather, it’s fragments of things have the personas of scientists. The pair which very often come from outside shot to prominence with their transforma- the world of architecture. tion of an English power station into the Tate Modern art museum, but they’re WWD: Was it just intuition, then? more concerned with building great archi- Where did you start from? tecture than their personal profiles. Jacques Herzog and Pierre de Meuron Prada’s Tokyo store, in the city’s Herzog: Yeah, it’s a lot of intu- Aoyama district, is representative of their ition. Of course, we said, “How is the mer- affinity for geometric designs, and is al- chandise displayed in the Prada stores — ready admired for its faceted windows in this store, in that store? How would you upon which patterns of light are projected want to do it? How could it be different? from dusk until dawn, making the build- Plus, how does Prada want to display its ing appear to melt or pulse from within. stuff?” So the building offers this poten- Inside, “sound showers” and touchscreen tial to do it in many different ways. “snorkels” expand shoppers’ experience to the aural and tactile dimensions. WWD: Considering the technology in- In a telephone interview with WWD vestment in the store, and how quickly that from the company’s base in Basel, [not to mention fashion] becomes obsolete, Switzerland, Jacques Herzog discussed will you have to tear it all out in a decade? his inspiration for the store, how Prada’s How long is this building meant to last? competitors are already trying to copy it, and why he’s not obsessed with shopping. Herzog: Oh, I think that technology is the one thing that changes much faster WWD: When you started thinking than the snorkels, which will survive, con- about this store, did you decide you want- taining different information, or will then ed to create a spectacle for the brand’s change into lamps or sound showers as sake, or was it meant to lure shoppers in? some already do now. I think they have the potential to be altered over the years. This Herzog: Like a trap, you mean? is the case with the whole building. I would Whatever a company does, every store is like this building to become a classic, like in some ways a trap. But we laid it out like the Milan store, and become a flagship, re- a market rather than a trap. ally, for Prada worldwide. So Milan is now Everything is laid down, laying their most interesting store — the founding

flat horizontally, which is differ- OUTLINE FRANKENBERG/CORBIS ROBERTO BY PORTRAIT store. And New York can have one of ent than any other store. It’s these, the SoHo store, and Prada Tokyo really about seeing, perceiv- Arts the design. Otherwise they will immediately make the link between Aoyama, our building, has the potential to ing, touching, looking, getting would not be interesting. us and Prada and Prada and Rem and our- become a real classic, but who knows? All involved. And this is very You know, the design re- selves and Rem (and we have been collab- our designs, ideally, if you love them, and human, very much bound to sponse to this — touching, orating), and this is okay. It’s just one facet maintain them well, are also ready for our daily experience. But it’s & and being involved totally of it. But we should not overestimate it. Of transformation. Maybe it could become a much stronger, much more en- physically and mentally — is course, people like these kinds of back- disco, or a restaurant, or a museum. But it hanced. So people may feel — People the concept of the building. You ground stories, and what could be behind has the potential to remain an important you know, maybe this sounds a bit want to be involved, just as you them, and what’s their idea, what’s the element of the identity of that company. stupid — closer by themselves. are involved sometimes in nature — in a common thing and what’s the difference? And maybe this animates them to go meadow or under a tree or near a river — So it triggers stories and rumors, and I WWD: Can it be copied at this point? Or shopping. Maybe not. I can’t say. It’s just, I even if it’s a totally artificial world tech- think that belongs to the art world as much are the Epicenter stores too iconic now? think, a different feeling than they may nologically speaking and materials-wise. as to the fashion world, and all these dif- have had before. I think the store, because ferent worlds today are somewhat con- Herzog: I think it’s already happening. it’s so different and so new, will be just WWD: Is this a sea change in the nature nected, because every filmmaker knows If you look on the Internet, there are like, ‘oooh.’ People will just feel very inter- of retailing — providing an entertainment what the more interesting architects are quite a few things happening which look ested in going to such a store. And I guess environment at all times, in which you doing and vice versa, and the same is right like great structures and even famous they would like to have a part of that store, happen to be selling to them? Or is this for artists and fashion designers, etc., etc. fashion brands are doing this already. to own a part of that store — which would possible only in Japan? Or with Prada? be Prada merchandise, Prada stuff. But WWD: What were the visual inspira- WWD: Can you toss out a few names? we didn’t do a concept based on psycholog- Herzog: I cannot predict a way shop- tions for the store? ical issues and tests and marketing. The ping will go. People have always been in- Herzog: I have forgotten the names. sheer qualities of architecture, in the way terested in shopping and probably al- Herzog: It’s a hybrid of old-fashioned, (Laughs) that it teases all of your senses, is what ways will be, and the best conditions to 19th-century English stores, or even Prada should make people feel great and serve get people animated are always changing Milan — with the curved glasses: you know, WWD: Would you like to work on an- as a platform for better sales. based on the times we’re in. the glass vitrines. It also has moments or other retail project soon? Did you take But right now, this seems to be a very aspects of medieval bursa. It looks like a away a new appreciation for shopping? WWD: What kind of crowds are you interesting strategy. It’s also a strategy child’s drawing of a little house. It’s also expecting? Do you think the store will where you can get involved in really great like a tower in a smaller version, or like a Herzog: I am interested in every sin- become a tourist destination? The SoHo architecture. If this wouldn’t be an inter- crystal, so it combines different facets. gle element of what architecture can do store has been overwhelmed by sight- esting strategy, you could say, “I don’t give At the same time, I like our architecture and what urbanism can offer you — and seers, and it’s taking its toll on the store. a shit about great architecture. Why don’t to release almost controversial images, but shopping and retail are certainly impor- Considering yours cost nearly twice as we go for great lamp design?” or whatev- it doesn’t fix you in this or that or only one tant. But it’s not that I believe we are in a much, is it ready for them? er, and go for other strategies. But way to see it. It’s one space, because no key moment in history when shopping is Miuccia Prada and Prada as a company floor is cutting all the way through. It’s very changing into something else. Shopping Herzog: That’s something that subtly thought it would be great to go for the best spatial, it’s a round blob kind of thing, with will always just be shopping, you know. I changes over time, and at the beginning, possible architects of this time and go for all these horizontal tubes. It’s about intima- think everybody likes to shop and get we’re prepared for this kind of thing, a few stores that would express that. cy and large scale and smaller scale. new things. It’s just that some people which is something that we are used to spend more time with it and have more from when the Tate opened and we were WWD: How much of the store’s appeal WWD: What aspects of the store can fun doing it. And, as I said, if you buy veg- overwhelmed and needed much more to shoppers is due to the fact that it is a be adapted to retail in general? What can etables form the market, or clothes from staff. And this touches upon maintenance “Herzog & de Meuron” store? Prada has we learn about shopping from this? the Prada store, or a pair of old shoes in and how the materials will withstand all been accused of trading off Rem a market in Morocco, it’s all interesting, of these things, especially because they Koolhaas’ cool in the SoHo store and vice Herzog: I am sorry to disappoint you, and they all create specific conditions of are materials which are very fragile. versa. Do you think you’re being per- because I can’t make such a general state- urban behavior. It’s all about urbanism, But this is also a conscious strategy to ceived the same way? ment about shopping or retail from just this in fact. It all relates to how rich a city is, be very careful and to move in a different one building, which is really meant to be in and what variety it offers you, and which way. And that is related to a different cul- Herzog: I think it could be a way that Japan and for Tokyo and has all these is- is the right model for the right place. It’s ture in Asia. The building in Tokyo could customers perceive it because you seem to sues of the materials and the shyness of the not the luxury thing, or that bag or that not be in New York or in Switzerland. All perceive it in such a way, and everybody people and it’s being unique for Prada — particular moment or that particular of these questions are somehow related to who’s close to design and the art world it’s the first building they’ve ever done from kind of merchandise that interests me. 6

Shot in the green room of MTV’s Beach House, Hilarie Burton wears Kate O’Connor’s silk and cotton knit minidress with sash. Christie Martin earrings and bangle. WWD, THURSDAY, JULY 3, 2003 JULY WWD, THURSDAY,

Beat Seeker PHOTOS BY TALAYA CENTENO; HAIR BY BETSY REYES; MAKEUP BY KRISTI FUHRMANN. FASHION ASSISTANT: YI GUO; STYLED BY KIM FRIDAY YI GUO; STYLED BY ASSISTANT: KRISTI FUHRMANN. FASHION BETSY REYES; MAKEUP BY CENTENO; HAIR BY TALAYA PHOTOS BY

By Nandini D’Souza With the MTV calling card, she could direct-dial Gwen Stefani, Eve or P. Diddy if she wanted to, yet she says her ultimate interviews would be with Barbra Streisand or NEW YORK — Hilarie Burton has what many would consider a dream job. As one of Martha Stewart. “I love Martha,” she explains. “My goal is to make her cool for young MTV’s most popular VJs, she has a plum gig for someone who turned 21 just two days women again.” ago. What’s more, she’s starring in a new TV series for the WB, and her boyfriend, But beyond riffing on stars many current MTV watchers probably aren’t interested in, Brian Terry, just popped the question. Burton knows what drives the music industry these days and she understands the role It’s all been a lot to fit into a relatively short time. After all, three years ago, the fashion plays in it. “I like videos where you can see a lot of different looks,” she says. Virginia native was a freshman at Fordham University, majoring in poli-sci and “That’s why I like Beyoncé’s ‘Crazy in Love’ video and Mya’s ‘My Love is Like Whoa’ with English and seriously considered going into prison reform. Then, two weeks after ar- the dancing and the costume changes.” No Doubt’s “Underneath it All,” with a makeup- riving in Manhattan, she entered a contest that involved interviewing Carson Daly of free Stefani in a white undershirt and sheer skirt, also caught her eye. “Total Request Live” for 30 seconds. Unlike most of the other contestants, she opted When it comes to her own style, Burton has a few staples that she can’t go without. for something other than “Boxers or briefs?” “Cowboy boots are a must-have,” she says. “They go on every trip with me.” Another “If you find out you’re adopted, which two rock stars do you pray are your par- favorite is a vintage blue sari-like dress she picked up five years ago at a thrift store ents?” she asked. Daly, who answered “Prince and Debbie Gibson,” in Leesburg, Virginia. Recently, she found a city cobbler who can and the rest of MTV’s crew were charmed. Within weeks, Burton was salvage her favorite pair of shoes, “these beautiful black Michel moonlighting as Daly’s sidekick at various events, including the I was this kid off Perry stilettos that show toe cleavage,” which she wrecked on a long Video Music Awards. Eventually, she took over “TRL” duties. She walk one night. still can’t believe it happened like that. “I was this nobody kid off the “the streets, and Burton is into vintage, especially beaded looks á la the Twenties streets, and they entrusted me with big deals,” she says. and Thirties or old Hollywood costumes. She recently bought a But has any of this gone to her head? Hardly. Burton admits to still they entrusted me white Catherine Malandrino dress that reminds her of the iconic being a little starstruck when someone she really admires enters the white number Grace Kelly wore in “To Catch a Thief.” But for all room. When Bono snuggled up to her on the red carpet, for example, with big deals. the vintage evening dresses she has accumulated for proms and she needed a moment afterwards to regain her composure. “I was a ” dances, she’s most comfortable in the basics. “My go-to is jeans, little verklempt,” she says with a laugh. She also counts herself lucky heels and a cool top,” she says. that she has met three members (Jessie, Kelly and A.C.) of the original “Saved by the With her laid-back style, girl-next-door looks and on-camera confidence, she’s a Bell” cast. And, like any flustered fan, the first time she bumped into Beyoncé, she natural for acting. It doesn’t hurt that with her curly hair and slightly upturned nose, blurted out, “I love your music. You’re great. I think you’re cool.” But by the time she could be Nicole Kidman’s kid sister. In fact, this fall, Burton is making the jump Beyoncé responded with “You’re a Southern girl, too,” Burton had recovered enough from cable to prime-time in the WB’s “One Tree Hill,” a coming-of-age drama she says to volley back in her typical cool-girl fashion, “Damn straight, B.” is in the same vein as cult classic “My So-Called Life.” Scheduled to fill the void left In between takes for this photo shoot at the MTV Beach House in the Hamptons, by the end of “Dawson’s Creek” with its over-intellectualized teens, the show features Burton burst into spot-on interpretations of Beyoncé’s sexy shakes in the “Crazy in Burton as a 16-year-old cheerleader caught in a love triangle with two brothers. Love” video with Jay Z. In fact, throughout the entire day, she absent-mindedly sang out Between shooting “One Tree Hill” in North Carolina and flying wherever MTV lyrics to songs as varied as Fifties rock ‘n roll, Eighties power ballads and Nineties rap. sends her, Burton likes to read and go thrift shopping in transit. All the traveling lets Since her finger is on the pulse of the newest music, it’s surprising to learn that her indulge in another, more unusual interest, too. “Every city I go to, I like to get a Burton had a delayed introduction to pop. Her parents kept a strict watch on their five book on its local ghost stories,” she says, noting that good story-telling ability is some- children’s intake of pop culture. “I grew up on the oldies,” she says. “Until I started thing that she inherited from her father. “I anticipate going on a car trip with my kids working at MTV, the only concert I’d been to was by the Four Tops and the Temptations.” and no matter where we are, I’ll be able to tell them a story and freak them out,” she Her first tape was by Elvis Presley, and she still has his greatest hits in her iPod. says. “I’ll be that mom who other kids won’t be allowed around.” 7 WWD, THURSDAY, JULY 3, 2003

In the living room, she’s in cotton denim overalls from Levi’s and cashmere Hilarie’s bikini top from FAL by Jeffrey Grubb. Erickson Beamon bracelet; Guiseppe Zanotti shoes. Hit List Zanotti shoes.

NEW YORK — For Hilarie Burton, being stylish means more than just wearing the right labels. It also has a lot to do with attitude. So WWD asked the MTV VJ to rank her favorite artists, onstage and off, in terms of style and visual appeal. Surprisingly, fashion darlings Madonna and Gwen Stefani don’t make the cut, while some far-out acts do. And, as far as Burton is concerned, the guys outdo the ladies. Here’s how she sees it:

1. Marilyn Manson: “I think visually, he’s one of the most creative artists out there today. He takes the grotesque and turns it into something stimu- lating. I have a soft spot in my heart for the bizarre, so the odder the better.”

2. David Bowie: “I am obsessed with androgyny, and he made bold sexual steps to blur the line between ‘boys’ and ‘girls.’ Plus, who the hell can top ‘Ziggy Stardust?’”

3. Boy George: “By the time I graduated high school, no wall space in my room was visable because they were packed with pictures of him. I was devoted to George and his fabulous, extravagant fashion statements.”

4. The White Stripes: “Who else can make two colors so versatile? They use very bright white and very bold red, but they remain so mysterious. I love the honky-tonk phase they’re going through right now.”

5. Outkast: “In hip-hop, there’s a trend for performers to just want to talk about what sneakers they’re wearing. And then these guys show up and bring the thunder, with platform boots, wild stripes and polkadots. They Joie’s cashmere celebrate the eccentric, cardigan and Calvin and I wholeheartedly give Klein Jeans’ denim my approval.” COLLECTION UNIVERSAL/THE KOBAL PARTON: AGE.COM; DOLLY mini. Christie Martin necklace; 6. Missy Elliot: “Her fashion, Frou by Paige and the fashion she Novick belt. inspires....She had a hand in the ‘Moulin Rouge’ video, and as you can see from the kid dancers in her videos, she’s introducing an entire generation to old-school warm-ups. Very rad.”

7. Elvis Costello: “Regardless of how old he is, he still takes my breath away. I’m a sucker for a boy in cute glasses.”

8. Dolly Parton, Loretta Lynn and other country- music legends: “There’s an extravagance that old-school female coun- try singers have when it comes to fashion, as if saying, ‘Yes, every day can be prom.’”

9. The Flaming Lips: “Fuzzy animal suits….Need I say more?”

10. John Mellencamp: “There is something so sexy about just a white T-shirt and jeans. He owns this look.” MISSY ELLIOT: GREGG DEGUIRE, OUTKAST: STEVE GRANITZ, WHITE STRIPES: LARRY BUSACCA, MARILYN MANSON: KAVIN MAZUR, ALL FROM WIREIM MAZUR, MANSON: KAVIN WHITE STRIPES: LARRY BUSACCA, STEVE GRANITZ, MARILYN GREGG DEGUIRE, OUTKAST: MISSY ELLIOT: Keeping up with the pace of this ever changing market.

Flash Section II: August 7 Close: July 24

Covering junior, denim and urban 6x per year. Flash delivers market intelligence by reporting on the culture, the trends, the music and the attitudes that are influencing consumer spending. This is a must read section for every retail decision maker and marketer trying to reach the youth market.

For more information, contact Ralph Erardy, Senior VP, Group Publisher at 212-630-4589, or your WWD sales representative. WWDMediaWorldwide® 9 Denim Report WWD, THURSDAY, JULY 3, 2003 Expanding Earl Lands in London

LONDON — Earl Jean opened its first U.K. flagship in Notting Hill last month and, staying true to its roots, it’s Earl Jean last month opened a U.K. flagship. all about the product. The site, on Ledbury Road, is also the label’s first freestanding European boutique. Situated next door to J&M Davidson and across the street from Emma Hope and Plein Sud Jeans, the store houses the entire Earl Jean collection, including print- ed-cotton summer dresses and halter tops, as well as a full selection of denim. “London is known for its individuality and creation of edgy fashion trends, and has been pivotal to the success of the Earl Jean brand since its introduction to Europe,” said Bonnie Takhar, president of Earl Jean. “Now that the brand is progressing with our strategic expansion plan, it makes perfect sense that we should open our first European boutique in London..” The 2,000-square-foot, two- level store, designed by architect Kevin Thornton, is based on the Earl Jean store in Larchmont, Calif., and features stainless steel fixtures and dark Earl Jean’s wood, with glass shelving London store for folded T-shirts. There features are two dressing rooms imagesimages fromfrom on the ground floor, each itsits currentcurrent with aged, navy blue advertising leather cushions. campaign. The basement houses men’s wear, including shirts and jeans in five different styles and addition to London and Larchmont, the brand specialty jeans supplier to a full collection line, with washes. The London store is also the has full-price locations in New York’s SoHo licenses and broader brand recognition. The brand this first to showcase a line of vintage- neighborhood and in Miami’s South Beach district, year moved its headquarters to New York, leaving inspired Earl Jean sterling silver jewelry. as well as an outlet in Cabazon, Calif. behind Los Angeles, where it was founded in 1996. Bigger-than-life images from the new advertising “In coming years, we will be looking at further expan- The brand’s biggest ad campaign in years, shot by campaign shot by Patrick Demarchelier are on display, sion in Europe,” said Takhar, who served as managing Demarchelier and developed by the New York ad agency alongside a plasma screen playing video footage of a director of the brand’s European operation before par- Lipman, is due to break in the September issues of major behind-the-scenes look at the advertising shoot. ent company Nautica Enterprises named her president fashion magazines. Takhar has also said she aims to line The store opened June 16th, but Earl officials plan an of the full brand in October. up licensing deals for products including footwear, acces- opening party during London fashion week in Under Takhar’s direction, Earl is pursuing an aggres- sories and swimwear over the next year or so. September. It is Earl’s fifth company-owned store. In sive expansion program intended to transform it from a — Sarah Harris

We-R-Replay, The We-R-Replay a high-end collection will Replay Rejiggers U.S. Approach line, is to produce launch for 100,000 MILAN — At a time when many American brands are rising to prominence in the high-end spring pieces its jeans market pioneered by European companies, one of those pioneers — the Italian retailing. first season. brand, Replay — is looking to retrench its U.S. business. “We are shutting down our [wholesale] distribution in the U.S. and plan to sell the Replay line only through our brand stores,” said Claudio Buziol, president of Fashion Box Group, which produces Replay. Buziol attributed this decision to a need to slash prices and make them more competitive in the American market. “The route from the factory to the customer will be more streamlined and direct, and we’ll be able to lower prices in the U.S. by at least 30 percent,” said Buziol. Replay’s aver- age retail prices in the U.S. start at about $100. In the U.S., the company plans to open between 10 and 15 stores in the next five years. “We are thinking in terms of megastores,” he said. The first step in the transition is a planned September closing of the company’s store in New York’s SoHo district, which will be renovated, he said. Buziol offered few other details on the pending changes in the U.S. market. In a separate move, the company is preparing to expand its product range with the launch of a new experimental line called We-R-Replay, which will bow for spring-summer 2004 retailing at the company’s roughly 200 stores worldwide. We-R-Replay includes women’s and men’s looks, which are priced between 30 and 50 percent higher than Replay. The line will be available at some Replay stores worldwide, as well as some multibrand stores. “With We-R-Replay, it’s all about creativity. We want to forget about figures and budg- ets,” said Buziol. “We experiment with materials, artisan craftsmanship and handicraft techniques…dyes and treatments.” The line includes styles such as patchwork shirts made up of old handkerchiefs hand- sewn one by one. Buziol said these techniques do not allow for big production runs. For the first season, Buziol has budgeted production of no more than 100,000 pieces. Distribution will be more selected, with the company aiming at selling to between 300 and 500 clients at the most. Replay, on the other hand, is available in more than 3,500 sales points. The first collection blends studs and motorcycle-inspired details with more romantic and sweet touches, like embroideries and laces. Colorful prints peek behind graphic let- tering with references to Eighties rock concerts, while tough, oversized denim jeans with vintage finishes are paired with perforated T-shirts with metallic details. Denim makes up 30 percent of the collection. The designers paid special attention to the labels: The company dug out of the archives old vintage labels and applied the “We-R-” logo over the Replay brand. The W letter in the pronoun evokes an angel’s wings design. “I liked the ‘We’ pronoun in the label, the idea of a collective design, a group effort behind the line,” said Buziol, who oversees design. Fashion Box Group sales were $247 million, or 215 million euros, last year, with Replay accounting for 85 percent of this figure. The dollar figure was converted from the euro at current exchange. — Luisa Zargani 10 The Beat: Contemporary Tuning In Customers Dressing Up Chula Girls NEW YORK — Combine a contemporary look Three looks with a Latin flair and from Chula, the result is Chula. here and The line is being below. launched for holiday by WWD, THURSDAY, JULY 3, 2003 JULY WWD, THURSDAY, Infinite Apparel Group, which primarily pro- duces private label merchandise. “The Latino influ- ence is everywhere,” said Raymond Guzman, president of the Chula brand. “It’s in music, in Hollywood, every- where. This is a market with $400 billion worth of spending power. It cannot be ignored.” Together with Hazel Fraser, vice president of the brand, Guzman decided to launch Chula as a line geared to a sophisticated Hispanic woman. While it has a contem- porary look and feel, Chula is altered from the traditional contem- porary make in order to fit a more curva- ceous woman. “Stores are not doing much to target this customer,” he said. “They have to By Julee Greenberg recognize [her] needs. She is a woman who NEW YORK — The music is loud, likes clean, not overly videos are flashing on TV screens and embellished, clothes, customers are subtly dancing while but she is also a bit they wait in line to pay for their piles more curvaceous than of merchandise. the regular contempo- Such is the scene every day at H&M. rary customer.” Behind the scenes, clothes come into With key items such the store daily by the truckload and a as the black palazzo carefully chosen batch of music is pants, satin party dresses and cotton suits, the line also includes picked for play. While being ahead of a dark blue linen skirt with zipper details, a salsa dancing-in- the latest fashion trends is what the spired satin skirt and satin bomber jacket in vibrant colors such store does best, it’s also known for as cherry red and royal blue. being ahead of the trends in music, “Color is very important in this line,” Fraser said. “In New thanks to DMX Music. York, we are used to seeing so much black and I really think it’s “A lot of today’s fashion retailers time to offer more color.” want to use high-energy, cutting-edge The wholesale range begins at $40 for a logo T-shirt and goes music to play in their stores,” said up to $240 for a leather jacket. Fraser said she expects Chula to Christy Noel, vice president of reach $10 million in sales the first year. marketing at DMX Music. “To ensure — J.G. they receive this, our music and creative directors work very closely with each individual client so we can understand their objectives. They spend a lot of time to get a feel for the business.” The company, based in Los Angeles, has been in the music business for more than 30 years. It supplies the music of choice, as well as equipment like speakers and screens, to retailers, restaurants, medical offices and other businesses. It offers digital audio H&M and American Eagle are only two of the more than 180,000 service, programming and delivery of a businesses that use DMX Music. variety of continuous digital music to homes and more than 180,000 businesses around the world. Whether it’s Kenny G or 50 Cent, DMX owns more than two million songs and 25,000 music videos. Today, the company runs offices worldwide with a major presence in the U.S., Europe and Australia. It employs experts in the world of music to track trends through relationships with record labels and find the best music according to age group and gender. “Like everything else in the store, we like the music to be as current and upbeat as it can be,” said Steve Lubomski, director of advertising and marketing at H&M. “We want the music to put the customers in a good mood and keep them in the store as long as we can. Also, with the video screens behind the registers, it keeps them entertained for one of the most unpleasant parts of the shopping experience.” Since H&M wants the most cutting-edge music it can get, DMX often provides the chain with music that is high on the charts in the U.S., as well as tunes already big in Europe but not yet in record stores in the U.S. Some businesses still choose to play music on their own, without the help from services like DMX, but Noel said besides the low price, there are countless benefits to using a service. “With this service, the stores can better control what the employees are putting on,” she said. “Who knows what they play when a manager isn’t there?” From H&M, Abercrombie & Fitch and American Eagle to Macy’s and Brooks Brothers, it’s not only in-store music that DMX provides for these businesses. Noel said the company also provides services to stores that would like to sell promotional CDs of the music played in the store, plus it offers a message service to provide educational messages to employees. “The screens can provide regular training messages like how to fold something properly,” Noel said. While costs of these services varies from customer to customer, Noel said a single store on average will pay $75 per month, which includes lease of equipment. “It depends on how much customization the client wants,” she said. “But the average monthly cost is

sometimes less than buying four new CDs each month.” THOMAS IANNACCONE CHULA PHOTOS BY 11 Active Lifestyle WWD, THURSDAY, JULY 3, 2003 Chasing the Waves NEW YORK — The ocean of swimwear brands is about to Aimed at women between the ages of 30 and 45, as well get more crowded, and the new players jumping into the as those 45 to 55 with a younger attitude, the swimwear mix couldn’t be more different. has an athletic influence, but will reflect current trends, Izod swimwear, part of a major launch of the brand into said Lori Oscher, vice president of swimwear. Within two women’s wear, is aimed at those who favor preppy styles or three years, annual wholesale volume is expected to with a misses’ cut. Mama by Lisa Curran is designed for be $10 million, Skinner said. style-conscious pregnant women, while Lustythreads is To get consumers revved up about the new swimwear, Izod will mail an Australian label known for its spare Izod will mail “hundreds of thousands” of Izod will mail silhouettes. Mama postcards carrying a photo of a woman this image to They’re all hoping to get their piece of by Lisa running on the shore in an Izod tank. hundreds of the estimated $1.8 billion market. Curran “People have different views about how thousands of Last month, Kellwood Co. signed a deal debuts to spend their money,” Skinner said. “Ours consumers. with Phillips-Van Heusen Corp. to develop a next leans more toward advertising to drive sales women’s swimwear collection under the month. than having special events.” On another note, the company has hired sales reps in Izod brand. Kellwood executives said this Mama by Lisa Curran will also debut Puerto Rico, Mexico and Europe to build sales overseas. will be the brand’s debut in swimwear, even during next month’s market week. Curran Known for its barely there bikinis, Lustythreads is at though Izod has used swimwear in its adver- said she designed hew own swimsuit when the other end of the spectrum. The Australian company tising and has provided swimsuits to a few she was expecting her second child a few has 80 bikini styles in unlikely fabrics and colors like vel- lifeguard crews. years back. vet and nude. Last month, it launched an e-commerce site, “We started this great partnership in “No one was making trendy maternity lustythreads.com. women’s sportswear and we knew we could swimwear,” she said. “That customer wants Half of the brand’s sales are generated from its stars- work together on very exciting brand exten- something to be fashionable, feminine and and-stripes G-string bikini, according to Victoria Brown, sions,” said Robert Skinner, corporate vice sexy at the same time, without looking who cofounded the company with Jennifer St. George in president for Kellwood, referring to the matronly.” a garage in Brisbane, Australia. The duo worked togeth- PVH deal to license Izod women’s wear to An apron-style tankini, a tank with lin- er in Internet marketing and founded the business last Kellwood, which has set a spring rollout. gerie straps and a two-piece halter are December. “It’s youthful and action-oriented and set to among the key styles, which will wholesale “Our major point of difference is that we are a bold do good things at retail.” for about $55. Curran designs her own prints Internet-only company, producing the tiniest bikinis on Yacht club texture, tennis club terry and and will also use them for the maternity the Web in the latest fashion fabrics,” Brown said. collegiate stripe are among the groups in line. In the U.S., 25 stores will carry the Other swimwear labels are pursuing various avenues the 60-style collection that bows next month Mama line and Curran hopes to double that to bolster sales. during the New York swimwear market. figure before the end of the year. Liz Claiborne will show off its new mix-and-match sepa- Block Island, the Breakers Hotel and Izod’s new home fur- She said she has not “pushed” the newest component of rates collection at the swimwear show in Miami, July 19-24. nishings line provided some inspiration for the line. her business, but news of it has spread by word-of-mouth. Tops are offered in bra sizes and bottoms are offered in Distribution will focus on department and specialty Specialty stores, especially new maternity boutiques, have petite, small, medium and large. stores, and retail prices will range from $68 to $74. High- contacted her about the new group. Curran sees maternity Manuel Canovas has introduced children’s and men’s lights include a halter swim dress with a circular bamboo swimwear as more of a year-round business, since preg- swimwear. Les Touts Petits, a Ridgefield, N.J.-based brand, clasp on the back, a matte striped two-piece with a ribbon nant women don’t have the option of wearing an old swim- is launching a pre-teen and junior line at the Miami show. tie and a white signature terry tennis dress. suit when they go to warm climates in the off season. — Rosemary Feitelberg

After Hours With Avia Now Available Online LOS ANGELES — Activewear maker Avia launched its They retro and performance basketball collection last month with a late-night bash at Concorde, a popular Are Hollywood haunt. Wearing® Although the dress code called for sporty old-school gear, hipsters and a few starlets turned out in their own look of the evening — sexy jeans and black tops — as demonstrated by TV types Laura Prepon and Melissa Rivers. There were also stripes galore, from film actress Erika Christensen’s Victoria Secret tuxedo-stripe pants paired with a black tank top or a lesser-known guest in a vintage purple and black striped dress worn with Marc Jacobs pumps. Others in the crowd wore screenprinted Ts carrying everything from fashion statements to throwback cartoons like Felix the Cat. The fashion-y mix was perfect for getting down to the hip-hop tunes spun by DJs Ruckus and A.M. until the wee hours.

LogWWD on now to subscribe.com IA PHOTOS BY MISHA LEVINE IA PHOTOS BY AV 12 TheWWDList Freestanding stores give designers a chance to shine. They can flaunt their wealth by building limestone and marble temples for their brands and show off new merchandising techniques. While the world’s luxury sales may be slipping, designers are still talking retail expansion. They’re opening new markets in Russia, China and Stores de Force the Middle East, banking on sunnier economic days. Still, few can afford to operate loss leaders that simply serve High-end brands with the most freestanding stores worldwide as giant billboards. Firms are maximizing locations that are performing well and cutting loose those that aren’t. MAX MARA

WWD, THURSDAY, JULY 3, 2003 JULY WWD, THURSDAY, 1,146 Includes Max Mara, Marina Rinaldi, SportMax, Max & Co.; and Persona, Marella, Penny Black and I Blues, sold outside the U.S. With more than $1 billion in 1 sales, Max Mara is one of the largest — and most secretive — fashion firms in Italy. Most of its business in clothing, but Max Mara is buying other companies to produce more handbags and shoes. Its trendy Max & Co. line is growing with 40 to 50 stores planned for the U.S. over the next five to six years. ESCADA 386 In an effort to become a leaner, more efficient operation in response to continued pressure on the international luxury goods market, Escada is tightening its belt. 2 The German company plans to save $10.7 million this year through cost-cutting and improved performance programs. Escada is still targeting an increase in earnings and will raise its advertising budget. POLO RALPH LAUREN 352 The industry is watching to see if Polo Ralph Lauren can produce a Lauren by Ralph Lauren collection for spring, its first since Jones Apparel Group relinquished 3 the license last month. Lauren by Ralph Lauren is a potential cash cow; it generated $548 million for Jones last year. But Polo’s luxury products aren’t chopped liver. They were partly responsible for a 52.5 percent gain in fourth-quarter net income. Company-owned stores carried more luxury items like the Blue Label. COACH 317 Includes 150 regular-price, 75 outlet and 92 Japanese stores. Under the leadership of chairman and chief executive Lew Frankfort and president and executive 4 creative director Reed Krakoff, Coach has successfully managed to turn its business around in recent years. Since its initial public offering in October 2000, Coach stock is up by 62 percent. This fall, the New York-based firm is getting ready to present its newest venture, sunglasses, and plans 100 stores in the next five years. LOUIS VUITTON 308 Momentum for the red-hot Louis Vuitton-Takashi Murakami handbags continues unabated. Some stores have waiting lists of more than 1,000 names and the 5 Tambour watch is also on back order. Perhaps the most tangible sign that things are going right at Vuitton is the brand’s 28 percent sales gain in the first quarter. Marc Jacobs knows how to start a buzz. He cast convicted shoplifter Winona Ryder in ads last season and has chosen Jennifer Lopez as his new muse. GIORGIO ARMANI 282 Includes Giorgio Armani, Collezioni, Emporio Armani, Armani Jeans, Armani Junio, A|X Armani Exchange, Armani Casa and Armani Accessori. Giorgio Armani’s 6 pretax profit rose 9.7 percent for the year ended Dec. 31, led by double-digit gains in jeans, fragrance and watches and cosmetics. The company plans to open 20 stores this year, including a multistore location on The Bund in Shanghai that will contain a Giorgio Armani boutique, an Emporio Armani store and an Armani Caffe. CARTIER 220 Cartier, Richemont’s largest business, generates about 55 percent of sales; however, the jeweler ended the fiscal year with a decline in sales. There were highlights 7 nonetheless, including last fall’s launch of the Divan watch and Le Baiser du Dragon, an Asian-inspired jewelry collection. A Le Baiser fragrance will launch in the U.S. in the fall. There’s also a new version of the Love bracelet, called Le Menottes, which looks like a handcuff. FERRAGAMO 203 Ferragamo returned to its classical roots after dabbling with artsy runway fare. The company is expanding its Fifth Avenue flagship to about 30,000 square feet 8 and launching a high-end collection of clothing and footwear for kids in the fall. In addition, branded Ferragamo goods will be retailed across Southeast Asia under a new venture between the fashion house and Li & Fung Distribution Group. MONTBLANC 200 Montblanc, a division of the 97-year-old Swiss-based Compagnie Financière Richemont luxury conglomerate, plans to open a 2,500-square-foot store on the 9 corner of Madison Avenue and 57th Street in the fall. Monblanc boutiques average about 700 square feet, but the company needs bigger stores to accommodate its ever-expanding product range. Montblanc opened a similarly grand 2,000-square-foot flagship on the Champs Elysées last year. VERSACE 181 Includes 120 directly owned Versace, Versus and Versus VJC stores, and 61 franchised units. Currency fluctuations and a proportionally higher tax burden pushed 10 the house of Versace into the red for 2002, yet Santo and Donatella Versace insist they won’t sell a minority stake in the company or pursue an initial public offering for growth. The company just opened two stores in Wenzhou and Harbin, China, and plans to open at least 13 more in that nation over the next three years. GUCCI 173 Everyone’s wondering whether Domenico De Sole and Tom Ford will stay with Gucci or leave to start a business with Ford’s name on the label when their contracts expire in March 11 2004 and June 2004, respectively. During the first quarter ended April 30, Gucci brand sales declined 13.7 percent to $369.8 million as its margin before goodwill amortization dropped to 20.2 percent of sales from 25.3 percent a year ago. Besides overseeing Gucci and Yves Saint Laurent design, Ford’s been busy launching a home collection for Gucci. PRADA 169 Includes Miu Miu. Prada ceo Patrizio Bertelli made nice with Jil Sander in May, inviting her back into the fold. The two had a bitter breakup three years ago and 12 Sander stepped down just months after Prada bought control of her company. Prada continues to lust after land and operate under an “if you build it, they will come” philosophy. Its latest trophy location is a 28,000-square-foot flagship in Tokyo’s Aoyama district, which cost $83 million, including the cost of the land. H. STERN 160 H. Stern, based in the upscale Ipanema neighborhood of Rio de Janeiro, spent its first 60 years building a network of stores. Its next initiative is to begin 13 wholesaling its collection, first in Europe, the Middle East and parts of the former Soviet Union. The company opened a flagship in Munich in March and is building another flagship in Hamburg. A spokeswoman said any future flagships will be strategically placed to support its wholesale business by giving its image a boost. BULGARI 150 Fewer customers in airports caused revenues from fragrance to drop 9 percent in the first quarter, but Bulgari is still bullish on scents. Omnia, launching in the 14 fall, could do $60 million to $70 million in sales in its first year. Net profit for the three months ended March 31 rose 26.7 percent and revenue rose 3 percent to $185.2 million. Bulgari said growth would have been 9 percent at constant exchange rates, but margins were hit by a strong euro against the dollar and the yen. CHRISTIAN DIOR 148 John Galliano’s mix of theater, controversy and headlines has worked like a charm for Christian Dior, where sales were up 49 percent at boutiques last year. The 15 fashion house is on track to become a $1 billion company in 2006 or 2007, according to LVMH Moët Hennessy Louis Vuitton chairman Bernard Arnault. Dior plans to open at least 20 more stores this year, including a $30 million flagship in Tokyo in December and a store on Peking Road in Hong Kong.

SOURCE: COMPANY REPORTS 13 WWD, THURSDAY, JULY 3, 2003 Gucci Worse Than Expected Continued from page one pegged the net profit decline at some- profit of $1.4 million, or 1 cent a share, thing closer to 28 percent. for the quarter ended April 30, a startling “Maybe the impact on the EBIT level 96.6 percent drop from the $41.1 million, was bigger than we expected, but on the or 40 cents, reported a year earlier. Gucci sales, we were probably too optimistic,” posted an operating loss of $28.2 million said Chiara Tirloni, an analyst with UBS compared with an operating profit of Warburg in Milan. She said it wasn’t pos- $23.6 million in last year’s quarter. sible for Gucci to sufficiently cut costs to “It was the perfect storm,” Gucci presi- offset the steep drop in Gucci brand sales dent and chief executive Domenico De Sole in the quarter. said in a phone interview. “Everything that The market appeared to shrug off the could go wrong went wrong.” poor first-quarter showing. Gucci’s Consolidated sales declined 6.7 per- shares closed up 0.7 percent at $98.42 on cent to $655.9 million from $702.7 million the Amsterdam Stock Exchange. But then in the first quarter of 2002, but the com- again, its shares are supported by major- pany said revenues would have been flat ity shareholder Pinault-Printemps- at constant currency rates. Sales were es- Redoute’s offer to buy out all remaining pecially weak for the core Gucci brand, shares of Gucci come 2004. After Gucci’s sliding 13.7 percent. exceptional dividend in May, PPR’s ten- Dollar figures have been converted der price will likely come close to $85.89 from the euro at current exchange. In a share, at current exchange. local currencies, Gucci reported net in- In New York Stock Exchange trading come of 1.2 million euros on sales of later on Wednesday, shares closed up 60 567.1 million euros. cents, or 0.6 percent, at $98.70. De Sole said that high margins, which PPR’s shares ended 0.7 percent ahead worked to the company’s advantage in in Paris at $74.02, after falling to as low quarters past, achieved just the opposite of $71.41 earlier in the day. effect on Gucci’s numbers this time Nathalie Schneider, a Paris-based an- around, generating “negative leverage.” alyst with HSBC, said Gucci’s results do Depressed tourist flow resulting from the not bode well for the second-quarter Gucci management expects the expansion of the retail network to support sales growth war in Iraq, combined with the negative prospects of other companies. Gucci’s fis- impact of SARS and a strong euro, bit cal year, like those of most U.S. retailers, in the second half. heavily into Gucci’s top line. Those effects ends Jan. 31, so its first quarter compris- filtered down to the profitability level. es February, March and April. The April the strategy to have cheaper products nications expenses for the launch of two The bottom line also suffered as loss- results of most of Gucci’s competitors, and more logo items has not yet worked fragrances: Alexander McQueen’s es widened at Yves Saint Laurent and with fiscal years coinciding with the cal- out, yet it seems like this strategy is start- Kingdom and Ermenegildo Zegna’s Gucci’s “other operations” division, a endar year, will come as part of their sec- ing to work in the second quarter.” Essenza di Zegna. group of acquisitions including Bottega ond-quarter numbers. Bulgari and Tod’s Gucci’s footwear revenue slumped YSL Beauté also is preparing to Veneta, Sergio Rossi, Stella McCartney, are both due to report second-quarter re- 12.6 percent to $46.8 million. Ready-to- launch this fall the first Stella McCartney Alexander McQueen and Balenciaga. sults later this month. wear sales backtracked 6.6 percent to fragrance, Stella. Still, De Sole was optimistic that “Some of Gucci’s problems are specif- $54.9 million. The only bright spot was Gucci released relatively few details things will improve for the rest of the ic to the brand, but…second-quarter fig- jewelry, which saw an 18.4 percent jump regarding its “other operations.” year, citing “improving revenue trends” ures for most players will look extremely to $25.2 million. Collectively, this group of brands saw in May and June. Specifically, he noted weak,” Schneider said. “We still think Gucci brand sales lost ground in every sales rise 21.3 percent to $94.1 million. It LVMH’s second-quarter sales, even single geographic market. A sharp drop widened its first-quarter operating loss though showing a slowdown versus first in tourism, particularly in Italy and before goodwill and amortization to $23.4 quarter, will look better in relative terms France, caused revenue from Europe to million from $18.1 million the year before. than the rest of the luxury sector.” fall 15.8 percent to $122.7 million. U.S. Gucci said Bottega Veneta’s first-quar- Jacques-Franck Dossin, an analyst sales declined 16.3 percent to $76 million. ter revenue increased 63 percent in con- with Goldman Sachs, echoed these Japan also fared poorly during the first stant-currency terms although the com- thoughts. “The first-quarter results are quarter, with revenue dropping 5.7 per- pany did not release exact sales figures. definitely disappointing. It shows a loss cent to $106.7 million. But Gucci said the Elsewhere, Gucci said it will open a of momentum of both the Gucci and YSL retail environment in the country is show- Bottega Veneta flagship on Fifth Avenue brands in the quarter.” ing signs of improvement and yen-denom- in a location originally earmarked for a In particular, the Gucci brand saw inated retail sales were up 7 percent in Boucheron store. first-quarter revenues drop dramatically, April and 10 percent in May and June. Boucheron needs to develop business eroding 13.7 percent to $369.8 million As for YSL, De Sole said he still be- in its network of recently opened stores from $428.4 million the year before. lieves the house is on track to turn a in London, Tokyo, Milan, Paris and Operating profit before goodwill and profit come 2005. YSL widened its first- Honolulu before opening a major store in trademark amortization was off 30.9 per- quarter loss before goodwill and trade- New York, Gucci said. De Sole also ex- cent, to $74.8 million. Despite cost cut- mark amortization to $24.9 million from a plained that Boucheron will fuel future ting, the brand’s margin before goodwill loss of $22.8 million the year before. growth by broadening its offerings, partic- amortization dropped to 20.2 percent of Sales for the quarter dropped 0.7 per- ularly in “more accessible price points.” sales from 25.3 percent. cent to $38.1 million, hit especially hard As for the other brands in the group’s Lehman Brothers analyst Andrew by the slowdown in Europe, but Gucci portfolio, Gucci sales at both Alexander Gowen articulated a common concern in said they would have risen 4.3 percent in McQueen and Stella McCartney “more the market that the Gucci brand is losing constant currency terms. than doubled” for the quarter. Both “Management expects the strong fall- brands cut the ribbon on stores in winter collection, as well as the expan- London last April. McQueen opened a sion of the retail network, to support boutique in Milan last month and It was the perfect storm. Everything that could sales growth in the second half of 2003,” McCartney will open a store in Los “ Gucci said in a release. The company Angeles in early fall. go wrong went wrong. also noted that retail sales growth re- During the conference call, Gucci also ” — Domenico De Sole, Gucci Group sumed in May and June, rising 16 per- shed light on Sergio Rossi’s financial cent in constant currency terms. performance. De Sole said that the shoe De Sole said in a conference call that company had experienced a “difficult strong orders for Gucci’s cruise collec- shoppers to competitors like Louis YSL’s spring-summer collection, despite period during the first quarter of this tion and double-digit sales growth at YSL Vuitton and Hermès. its artistic merits, was “difficult commer- year,” with retail sales dropping 4.2 per- in the months of May and June. “We believe that the distraction of cially,” but that prospects should be bet- cent in constant currency terms. But he While De Sole said he sees encourag- managing the YSL turnaround, especial- ter for fall. He cited a positive response said the future is looking brighter and ing signs from the U.S. and Asia, he said ly in such difficult market conditions, has from recent trunk shows of the collection. sales in May and June are up 12.9 per- there is still no evidence of a rebound in contributed to this underperformance,” In June, YSL inaugurated a store on cent at constant exchange rates. tourism to Europe. he said. 57th Street in New York and an acces- “After a very difficult quarter, sales “We saw some improvement in the De Sole dismissed talk that the Gucci sories-only boutique on Rome’s Via seem to have improved,” he said. months of May and June,” De Sole said. name has lost its luster, saying he is “to- Condotti. Other flagships in Beverly Meanwhile, there is still plenty of mys- “We have to see if this good momentum is tally and completely” confident in the Hills, Hong Kong and London are slated tery surrounding the futures of both De Sole sustainable.” strength of the Gucci brand and chal- to open in early fall. and creative director Tom Ford. As report- He declined to provide a financial target lenged those who disagree. YSL Beauté saw its sales for the quar- ed, there has been intense speculation that for the full year but told analysts on a con- “We’ll discuss [the issue] at the end of ter slide 1.2 percent to $163 million, but tensions between them and PPR could ference call that a challenging climate won’t the year and we’ll see who’s right and Gucci said they would have risen 2.4 per- drive them from the company. Both have derail the group’s multibrand strategy. who’s wrong,” he said. cent in constant currency terms. contracts that expire next year and they “We expect Gucci Group to be very Leather goods, by far the Gucci The beauty unit posted an operating have said they will stay at Gucci only if PPR profitable in 2003,” he said. brand’s biggest product category, saw its loss before goodwill and amortization of guarantees them managerial independence. Analysts were very surprised by the sales shed 16.3 percent to $175.9 million. $8.1 million compared with a profit of “We are negotiating, things are moving first-quarter figures. While they were Goldman’s Dossin said the weakness $3.5 million the year earlier. Gucci at- along,” De Sole said. “As soon as we have gearing up for a weak set of results, they in the leather goods division “shows that tributed the loss to start-up and commu- news, we’ll let you know.” 14 More Than Sundries for Sale Kors, Nordstrom Team Up MIAMI — Hotel guests here are picking up more than magazines, At D.C. Fund-Raising Event sunscreen and souvenirs at the lobby gift shop, and their well of WASHINGTON — Michael Kors tell you what they’re thinking.” choices runs fashionably deep, swept through Washington last In addition, Kors said his per- including Prada Sport cargos, week where he found his politi- sonal research dispels any thought Creed fragrances and Blumarine cal base at a Nordstrom-spon- of bureaucratic Washington as a floral knits with ribbons. sored charity fashion show in an frumpy place. “It might not be The transition comes as hotels 18th-century mansion. fashion with a capital F, but ap- WWD, THURSDAY, JULY 3, 2003 JULY WWD, THURSDAY, look to conquer the next frontier Kors, who said he has no as- pearance is important here,” he — better fashion retail, with pirations to dress a first lady, said, calling local women “actu- more than a shop for souvenir T- doesn’t have to worry about at- ally sexier and in better shape shirts and mugs or forgotten toi- tracting attention in the nation’s than a lot of people assume….I letries — after incorporating the capital. At the event, the 200 wouldn’t be here if I didn’t think spa, nightlife and dining indus- guests placed $500,000 in orders people here look great, and we tries into their on-site operations. at a Kors boutique set up by certainly have a following here The level of involvement varies Nordstrom and staffed by sales of women of all ages, all types.” from stores that are owned and associates from the retailer’s Jennifer Wheeler, director of operated by the hotel chain itself, Tysons Corner Center store. The designer sportswear collections outsourced to a proven specialty hour-and-a-half shopping frenzy at Nordstrom, said local women retailer, or niched with an exclu- SADLER CLARK ROBERT PHOTOS BY occurred in a crowded parlor routinely snap up items from all sive vendor or two, and it’s not with little room to maneuver across Kors’ collections, al- limited to hip boutique hotels. among racks of the designer’s though they “tend to be a little “The fact is that you can make fall collection and makeshift more conservative than the way money,” said Megan Weber, corpo- dressing rooms. our Michael Kors customer is rate retail buyer for The Ritz- Kors, in the midst of expand- across the country” and buy Carlton, “because sometimes the ing his business and deciding “great wardrobe staples” like only free time people have to shop who will be Michael Kors LLC’s separates in double-face crepe. is on a trip, even if it’s business.” ceo, seemed delighted to be But his skintight knitwear is also She describes a typical sce- away from it all. popular here. nario as a guest popping into The “You have this fabulous “Obviously, that’s his mark. Signature Shop for a tube of sun- weather. I’m thinking that I’m in He’s wonderful with knits,” tan lotion and leaving with a a resort,” Kors said, before the Wheeler said. glitzy TechnoMarine watch for fashion show on June 24, a bene- There are plenty of sexy lines $150 to $2,500. “It’s the ‘wow’ fac- fit for Washington-based Charity in Kors’ fall collection that struck tor — that the Ritz actually car- Works held at the Halcyon House, guests’ fancy, as well. Bestsellers ries all these things.” a historic mansion in Georgetown included a stretch jersey python Joining the company in 2000, owned by local sculptor John pencil skirt ($650), a walnut-col- Weber was promoted to head Dreyfus with sweeping views of a ored side-snap jersey tube skirt buyer in 2002, when her 1,300- brimming Potomac River. ($595) and indigo cigarette tuxedo square-foot store at the Key After a month of East Coast jeans ($395). Two of Kors’ Sedg- Biscayne, Fla., property grossed rain, models lolled around in the wick coats with leather waists for sales of $2.2 million. Her location’s shade on the grassy rooftop ter- $8,800 each and one $12,500 sable brand-conscious inventory mir- race as Kors in black stood in vest also were ordered from rors that of many successful con- the direct 90-degree sun. He among the cadre of Kors fans at- temporary stores with women’s dabbed his forehead with a linen tending, many of whom came wear lines like Trina Turk, cocktail napkin, sipped cranber- decked in his clothes. Nanette Lepore and C.J. Laing, ry juice and vodka and reveled The Charity Works benefit, denim from Blue Cult and AG, in commentary. Conversation with Nordstrom footing the bill, swimwear by Manuel Canovas and ranged from Kors’ beloved curly raised $24,000 for the organiza- Vix, and accessories by Chan Lu haired Rex cat, Max, who died tion’s 2003 project: new-building and Wendy Brigode. Prices match last year at 20 (“I’m not one of funds for the Fishing School, an those of outside boutiques, too, those fashion people who has a urban D.C. family center. such as Lulu Guinness’ embel- dog in a bag,” he said) to the de- After cocktails and shopping, lished handbags for $100 to $900 or signer’s preference for runways guests filed into the studio- Lady Lanell’s Swarovski crystal painted white, not black. turned-runway, with Kors’ moth- sandals for $145. Earlier, sitting beside the er, Joan, taking a front-row-center “People think that just empty runway in Dreyfus’ seat. She flew in from Los because a hamburger is $25 here, cleared-out studio, Kors said his Angeles the night before, not that we mark up the clothing forays out of New York, like the wanting to break her almost-per- prices. They are really surprised benefit and Wednesday store ap- fect 22-year record of being in the by our reasonable prices,” she From top: Two boutiques at the Ritz Carlton in Key Biscayne, Fla.; Scoop pearance at Nordstrom’s Tysons audience. “I did miss two Celine said, adding the two most expen- opened at the Shore Club in Miami Beach. store, “is part of my design shows,” she confessed. sive lines are Blumarine and process….Customers definitely — Joanna Ramey Tocca. Retail prices for Tocca all-inclusive property, it tapped also get a lot of business while range from $78 for a top to $280 New York-based Scoop in 2000. The people are waiting for tables at for a dress, while Blumarine runs 1,550-square-foot space operates on Ago or Nobu,” she said. from $245 for a top to $700 for a the same level as the specialty retail The concept has worked out pair of jeans, which are generally chain’s six other locations, averag- so well for both parties that dif- Tefron Expecting Weak Quarter in line with those brands’ prices ing $1,500 to $2,000 a square foot, ferent hotels are approaching at other stores. according to partner Stefani Green- Scoop to open on-site stores, NEW YORK — Shares of Tefron ters to roughly $41 million, com- Weber has been instrumental field. The retailer was so commit- though Greenfield wouldn’t men- Ltd. got pounded on Wednesday pared with sales of $49.7 million in changing the perception of her ted, it relocated its top salesperson tion any names yet. after it said it is expecting to in the second quarter and $50.1 corporate-minded executives as and manager to Miami. The Peninsula Chicago hotel post a second-quarter loss and million in the third. This would well. There were many raised “The only minor differences doesn’t have a full-scale clothing profoundly weaker sales. represent nearly a 60 percent eyebrows when she put out some are that 80 percent of the mer- store, but it wanted something Shares of Tefron lost 82 year-over-year revenue decline. fun bustiers in the Key Biscayne chandise is spring-summer, and luxurious and exclusive to the cents, or 19.8 percent, to close In a statement, Tefron said it resort’s smaller spa shop. But it’s seasonal, but we make up for city. Shanghai Tang seemed the the day at $3.32 on the New York blamed the loss on the “current after those items sold within a that during high season,” she best choice to go with the compa- Stock Exchange. Shares over the level of sales, together with addi- week, it was noted that the Ritz’s said, “and people come in to ny’s Asian roots and vibe. Shop- last year have traded as high as tional costs associated with the older guest profile had evolved shop in their bathrobes, or bare- pers, of which up to a quarter are $4.84, reached on June 3, and as shift in production to Israel and into a more youthful one that foot in swimsuits.” nonhotel guests, find select items low as $2.90, reached on Aug. 6. the appreciation of the Israeli wants Red Line tracksuits, The store carries a hodge- from the broad line, including The Israeli producer of inti- shekel against the U.S. dollar Eberjey lingerie and Me fizzy podge from pick-up items like red silk pajamas with green bro- mate apparel said it now expects since the end of the first quarter.” bath balls. The hot merchandise Paul Smith toothbrushes and cade for $225, and black and to post a loss of $1 million for the The company also expects is desirable enough to attract Cosabella thongs to men’s and fuchsia silk scarves for $125. second quarter ending June 30, profit and sales improvement in nonguests in the same way that women’s wear, accessories and “The store is tiny, about 14 by 11 but said it expects to break even the fourth quarter, helped by the they would come to the hotel to shoes. Bestsellers are Joie cargo feet, but it attracts a very specific in the September-ending third introduction of several new ac- have tea or use the spa services. pants, anything in terrycloth by clientele who travel and know this quarter, as a result of cost savings tivewear products toward the “It used to be that hotel shops Juicy Couture, and jeans from line,” said Augusto Gomes, direc- from the now-completed produc- end of the fourth quarter and the were more like WH Smith sun- Seven and Paper Denim & Cloth. tor of front office relations. tion shift to Israel from the U.S. beginning of the first quarter. In dries and logo apparel stores. Higher-priced lines including To entice those who might not However, it said the disrup- addition, it said it has received That’s not the case anymore,” Marc Jacobs and Jil Sander also be familiar with the line, the bou- tions from the production shift, a indication from its largest cus- said Weber, who is already buy- sell, primarily owing to the high tique also carries Vosges choco- decrease in sales to its largest tomer that orders for the fourth ing for new Ritz boutiques in rate of visitation by New Yorkers. lates. “Once they see the mer- customer and unfavorable mar- quarter are expected to improve. South Beach and Orlando, Fla., Greenfield estimates that a chandise though, they’re hooked, ket conditions stalling the rollout “We are optimistic about the and Bachelor Gulch, Colo. quarter of shoppers are non- especially during the holidays,” of an activewear line would prospects of our activewear pro- When the Shore Club in Miami guests who drive from as far as he said. cause sales to crumble for the gram,” Yos Shiran, chief execu- Beach wanted a serious store for its Palm Beach and Boca Raton. “We — Rebecca Kleinman combined second and third quar- tive of Tefron, said in a statement. 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