Neiman's Sets Overhaul of Bergdorf Goodman
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EAU DE JEWEL EVERYTHING’S RESORT BIDDING ROSY 2015 FOR TEENS MAX MARA VERA WANG, SYCAMORE ACQUIRES HONORED ROSE REEM ACRA, ELIE 9.9 PERCENT OF EXPRESS BYRNE AT THE KILIAN HENNESSY IS LAUNCHING INC. AND SEEKS TO CRYSTAL + LUCY SAAB AND MORE. BUY THE REST OF THE A LINE OF SCENTED NECKLACES PAGES 4 AND 5 AWARDS IN L.A. AND BRACELETS. PAGE 6 RETAILER. PAGE 2 PAGE 10 FIVE-YEAR PLAN Neiman’s Sets Overhaul Of Bergdorf Goodman By DAVID MOIN BERGDORF GOODMAN wants a sharper edge and will build a “lab” for emerging designers on its sixth fl oor, as parent Neiman Marcus Group sustains in- vestments in brick and mortar. The designer lab is part of “BG/2020,” a compre- FRIDAY, JUNE 13, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY hensive, fi ve-year overhaul of the Bergdorf Goodman WWD women’s fl agship in Manhattan, commencing in a matter of weeks. “This is the fi rst major renovation of Bergdorf Goodman in the last 15 years. We are starting on the sixth fl oor and will come back down to the fi rst fl oor,” Karen Katz, president and chief ex- ecutive offi cer of Neiman Marcus Group Ltd. LLC, told WWD on Thursday. “I do think part of what Josh and the team will be doing is really to make sure we are balancing the assortments between all the wonderful designers we do great busi- ness with, with an ability to nurture new, young talent,” Katz said, referring to Joshua Schulman, BG’s president. On the sixth fl oor, which currently houses sports- wear, coats, eveningwear, lingerie and swimwear, the vision is for the lab for emerging designers, as well as modern designer sportswear and “salons” for eve- ning, outerwear and lingerie, Katz said. She has been touting NMG’s new owners, Ares Management LLC and the Canada Pension Plan Investment Board, which together bought Neiman’s for $6 billion last October, as eager to invest in the stores. On Thursday, Neiman’s disclosed results for its third quarter ended May 3, including a net loss of $2.7 million, compared to net earnings of $70.8 million in the year-ago period. Excluding purchase accounting and certain transaction-related and other expenses, adjusted net earnings for the third quarter came to $45.1 million, a 42.7 percent decline compared to $78.7 million in the prior year. Other expenses driving the net down stemmed from a former investment in Glamour Sales in China; SEE PAGE 9 Galeries Lafayette To Expand Into Italy By WWD STAFF PARIS — Italy’s biggest shopping attraction is taking shape — with a marquee French retailer as an anchor. Galeries Lafayette is to open a 194,000-square-foot fl agship in Westfi eld Milan, a future mall billed as Italy’s largest and viewed as something of a gamble, LoveWith her newest fragrance, DKNY MySong NY, Donna Karan is penning given the country’s downbeat economy. The fi rst phase of the development, covering al- an ode to her favorite city — and has recruited songstress most 1.9 million square feet, is slated to open at the Rita Ora to help her. The fragrance, which will be launched end of 2017 on a site in Segrate, 3.7 miles from central Milan and will contain about 300 stores. The second globally in August, will be sold in about 2,885 department and phase is to be completed in two to four years. specialty stores in the U.S. and could do upward of $50 million Galeries Lafayette said it reached an agreement with at retail in its fi rst year on counter. For more, see page 6. mall specialists Westfi eld and Arcus Real Estate, con- trolled by Stilo Immobiliare Finanziaria, to open the four-level, 194,400-square-foot unit, part of an acceler- ated international push and signaling that Europe’s de- partment stores are stretching into new frontiers. “It is the combination of a promising market and a commercial operator that is very active worldwide that has convinced us to sign this opening in Milan,” Nicolas Houzé, chief executive offi cer of Galeries Lafayette’s department store division, told WWD. “We expect to draw a clientele from all nationalities, European and international, from North and South America, Asia and China.” While acknowledging that few European countries have been spared economic woes and a drop in con- sumer spending, he held out hope the economic situ- PHOTO BY STEPHEN SULLIVAN ation on the continent will have improved by the time SEE PAGE 8 2 WWD FRIDAY, JUNE 13, 2014 WWD.COM Sycamore Seeks to Buy Express THE BRIEFING BOX By VICKI M. YOUNG IN TODAY’S WWD PRIVATE EQUITY FIRM Sycamore Partners has a new acquisition target in mind: teen retailer Express Inc. The New York-based private equity firm on Thursday sent a letter to the board of Express in- dicating that it has taken a 9.9 percent stake in the retailer and would like to acquire the balance of the shares it does not already own. AQUINO Sycamore, through its managing director Stefan Express shares climbed 19.9 percent JOHN Kaluzny, said it would like to conduct due diligence in after-hours trading on Thursday. BY on the retailer to “determine a definitive valuation of the company,” and then within 30 days after get- PHOTO ting the OK to do the review, submit a binding, fully fell 2.6 percent to $13.55, but then climbed 19.9 per- financed proposal for the balance of the shares. cent to $16.25 after the SEC filing became public. Sycamore also noted that it has access to avail- In a Schedule 13-D filing with the Securities and able funds and manages over $3.5 billion in assets. Exchange Commission on Thursday, Sycamore said Kiernan Shipka at the party GRAVES Sycamore earlier this week said it just closed on it had invested through affiliates $106.2 million, in- honoring Rose Byrne. AMY commitments of $2.5 billion for its second fund. The clusive of brokerage commissions, to acquire the For more, see WWD.com. BY first fund closed in 2012 with $1 billion in commit- 8.3 million shares of common stock of Express, to- PHOTO ments from investors. taling a 9.9 percent stake, in a number of transac- Express confirmed receipt of the letter from tions on the open market. Sycamore and said it has established a special Express was once part of the portfolio of Leslie Galeries Lafayette is to open a 194,000-square-foot flagship committee of the board to determine a course of ac- Wexner’s Limited Brands. Private equity firm in Westfield Milan, a future mall billed as Italy’s largest. PAGE 1 tion. The company also noted that it has adopted a Golden Gate Capital acquired a partial stake in Stockholder Rights Plan to allow the board time to the company. The teen retailer went public in Bergdorf Goodman wants a sharper edge and will build a “lab” consider its options. 2010. Both Golden Gate and Limited no long own for emerging designers. PAGE 1 At the close of trading Thursday, Express shares stakes in Express. Lands’ End’s net was up 48.1 percent in its first quarter since being spun off by Sears Holdings Corp. PAGE 3 Lululemon Stock Hit on Forecast Mulberry’s road to recovery will be long — but a new beginning is in sight, according to its executive chairman. PAGE 3 LULULEMON ATHLETICA INC.’S a three-month average volume Potdevin spoke during a con- issues are far from over. of 3.1 million, as the stock on ference call with Wall Street Donna Karan has enlisted Rita Ora to give her a hand with her Shares of the yogawear retail- Thursday closed’’ at $37.25. analysts about Lululemon imple- newest fragrance, DKNY My NY. PAGE 6 er slumped 15.9 percent in over- For the three months ended menting a social platform that the-counter trading Thursday May 4, net income was $19 mil- would allow it to “leverage the Kilian Jewelry will introduce a line of scented necklaces and after the company said first-quar- lion, or 13 cents a diluted share, power of our investor communi- bracelets that are due out later this month. PAGE 6 ter profits fell 59.9 percent and from $47.3 million, or 32 cents, ty,” as well as an in-store technol- lowered guidance for the year. in the year-ago quarter. The drop ogy rollout to enable shoppers to was mostly due to a tax expense buy from the larger online inven- Paco Rabanne’s Lady Million fragrance is gearing up for the Laurent Potdevin, chief execu- PAGE 7 tive officer, noted three key priori- related to planned repatriation tory that’s more encompassing launch of a new counterpart, Lady Million Eau My Gold. ties to turn the company around of foreign earnings that will be than what’s in the stores. While — build the product engine to used to fund the company’s $450 he spoke about how the digital Nails Inc. is celebrating its 15th anniversary with new consistently push new offerings million share buyback program. project allows the company to packaging and other brand enhancements. PAGE 7 in men’s and women’s, implement Net revenue rose 11.2 percent to target new “guests” and drive a new branding and communica- $384.6 million from $345.8 million. additional sales, he didn’t elabo- Paris-based Cifonelli, whose roots go back to 1880, will tions strategy and international The company, which said its rate on what would be new to launch its first ready-to-wear collection in September.