PHOTO BY KYLE ERICKSEN Avenue. on Fifth hunters bargain Friday Black holiday ’08 A Sigh of Relief WWD Women’s Newspaper Daily •December1,2008$2.00 Wear Retailers’ •The Daily full weekend coverage,seepages8to10. to take abiteoutoffourth-quarterprofi by discountsofunprecedentedproportions,certain expectations. Shopperswereluredoutofhibernation traffi Retailers breathedjustabiteasierafterBlackFriday page 4. ceo, president, Lukoff Frederick names McCartney Stella NEWS:

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4 WWD, MONDAY, DECEMBER 1, 2008 WWD.COM Saks Gets Defensive as Slim Ups Stake By Evan Clark as it’s battled escalating losses, shrinking sales and lower credit ratings. WWDMONDAY Accessories/Innerwear/Legwear SAKS INC. SAW A POISON PILL PLAN AS THE Slim, through companies he oversees, fi rst best remedy for the combined symptoms of a low took an interest in Saks in March 2000 when his stock price and an aggressive investor. Orient Star investment company snatched up GENERAL The embattled luxury retailer established a 7 percent stake. Retail was familiar territory 1 Retailers went into Black Friday weekend with a preferred share purchase program last for Slim, who already controlled 86 percent of lowered expectations and came out with a Wednesday — one that kicks in when a single Sanborn department store parent Grupo Sanborn sense of relief. investor acquires 20 percent or more of its stock and an 85 percent stake in Sears in Mexico. — just days after Mexican billionaire Carlos Slim After Slim bought Sears’ Mexican operations, 4 Saks Inc. took defensive measures last week Helú boosted his stake in the fi rm to 18.3 percent. analysts said the deal made sense for Slim’s Grupo against a single investor owning more than 20 In his own filing with the Securities and Carso, which was seen as a turnaround specialist percent of its stock. Exchange Commission, Slim certifi ed that the that bought undervalued companies. “Sears was a 5 Karl Lagerfeld’s glamorous, big-budget, silent shares “were not acquired and are not held for the classic turnaround company for Carso to buy,” an short fi lm about Coco Chanel’s early years is purpose of or with the effect of changing or infl u- analyst said at the time. “It was at the bottom of premiering in Paris on Wednesday. encing the control of the issuer of the securities.” the retail cycle and losing money.” That may provide scant comfort to Saks, which In March, Forbes estimated Slim’s fortune at $60 7 Louis Vuitton creative director Marc Jacobs said in its SEC fi ling on the poison pill plan, “The billion, between Warren Buffett and Bill Gates. is paying homage to Stephen Sprouse with a board of directors has authorized the adoption of In an interview on his offi cial Web site, Slim special collection of accessories and ready- a rights agreement to protect shareholders from was asked why he started buying companies dur- to-wear. coercive or otherwise unfair takeover tactics. ing Mexico’s 1982 fi nancial crisis. 11 Cosmetix West is stepping out from behind the In general terms, the rights impose a signifi cant “It all collapsed, the trust of investors, the private label curtain with its own personal care penalty upon any person or group which acquires rate of exchange, and of course, prices,” he said. and home fragrance brand, Infusion Organique. benefi cial ownership of 20 percent or more of the “All this, led to these inexplicable, punished company’s outstanding common stock without prices of very valuable companies that did not 15 ACCESSORIES: Watchmakers and jewelers the prior approval of the board of directors.” have fi nancial problems.” are fi nding a new avenue to sell their wares Slim ranks as the world’s second richest man Much of that should sound familiar to inves- — and it’s not Madison — it’s the cyber and amassed his business empire, in part, by ac- tors in today’s market, which is characterized by highway. quiring companies on the cheap during Mexico’s a banking crisis and extremely low stock prices. LEGWEAR: From zip-up leather pieces to 1982 fi nancial crisis. Slim on his Web site also lists his 10 business ▲ 16 Inmobiliaria Carso, a trust controlled by the principles in talking about his Grupo Carso busi- complicated sheer confections, edgy legwear family of Slim, owned 25.3 million shares of Saks ness. Among them are: a simple business struc- designs popped up all over the designer as of Nov. 24, boosting its ownership interest by ture with minimal hierarchies, austerity, a focus market for spring. 3.3 million shares in less than a week, according on modernization and cooperation and, number Jewelry & Watch Report is included as a to fi lings with the SEC. Saks had 137.7 million 9, “All times are good time[s] for those who know Section II in this issue. shares outstanding as of Nov. 1. how to work and have the tools to do so.” Classifi ed Advertisements...... 18-19 Investors pushed shares of the fi rm up 12.4 The souring fortunes of luxury shoppers have TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS percent Wednesday after the so-called poison pill hurt all the high-end chains. Saks also is stuck [email protected], USING THE INDIVIDUAL’S NAME. was established. The stock continued to rise in with a cumbersome debt load, although analysts WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 an abbreviated session on Friday, ascending an- said the company could always tap the inherent FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. other 7.8 percent to $4.31, well below the issue’s value locked away in its real estate, particularly VOLUME 196, NO. 114. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with 52-week high of $22.19, but 61.4 percent above the the landmark Fifth Avenue fl agship. one additional issue in January, October and December, two additional issues in March, April, May, June, August and November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division 52-week low of $2.67 established on Nov. 21. For the quarter ended Nov. 1, Saks posted a of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services Saks said it would distribute a preferred share loss of $42.8 million on a 12.3 percent drop in provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. purchase right on Dec. 8 for each outstanding sales as the fi rm’s women’s apparel business was Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage share of the company’s common stock. The right laid low by “widespread weakness.” The compa- paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian would only be exercisable if a person or group ac- ny said its spring receipts are planned down by addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES quires 20 percent or more of the company’s stock. at least 15 percent. TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS Each right will entitle shareholders, other “It’s the toughest environment I have seen in CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed than the acquiring entity, to buy one one-hun- my career,” Stephen I. Sadove, Saks’ chairman on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all dredth of a share of Series C junior preferred and chief executive offi cer, said at the time. editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. stock. If a person or group of investors acquires Asked about the company’s liquidity, Sadove said For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. 20 percent of Saks’ common stock, each right he was “very comfortable with our fi nancial situa- Occasionally, we make our subscriber list available to carefully screened companies that offer products and services will allow the rest of the fi rm’s shareholders to tion” with its $500 million revolving credit facility that we believe would interest our readers. If you do not want to receive these offers and/or information, please purchase a number of Saks’ common shares that and a New York fl agship that’s “unencumbered.” advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, have a market value of twice that of the exercise Still, Saks is among the most fi nancially pres- UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR price, thereby diluting the acquirer’s position. sured of the broadline retailers, said Thomas ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER Low stock prices and declining market capi- Cook, managing director and senior analyst at MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE talization since the onset of the credit crisis in Citi, on a conference call last week. “Saks is now ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. September have made many publicly held fash- in cash burn mode,” he said. “Saks is going to ion fi rms susceptible to takeovers. Last week, be very interesting through 2009 because of the they also led Standard & Poor’s to move Liz cash burn and need perhaps to actually fund the Claiborne to its S&P SmallCap 600 index from business off the revolver.” DAILY the S&P 500, effective Dec. 2. Even though its But Cook said the company’s midtown Manhattan A markdown you take shares rebounded last week, to close at $2.85 on fl agship was worth enough to cover the fi rm’s QUOTE “ Friday, shares have fallen 86.6 percent this year debts even with depressed real estate prices. today is cheaper than a markdown you will Lukoff Tapped as McCartney CEO take later. — Brendan Hoffman, ceo of Lord” & By Miles Socha ment shuffle at Gucci Group developing luxury brands precipitated by the September and “will be able to build on Taylor, on Black Friday pricing. Page 8. PARIS — Stella McCartney has announcement that Gucci pres- [Stella’s] successes to date.” tapped Frederick Lukoff as her ident and ceo Mark Lee would This week, McCartney will CORRECTIONS new president and chief execu- step down at the end of 2008. As open a Paris fl agship in Palais tive offi cer, WWD has learned. reported, Lee is being succeed- Royal and christen her Tokyo • Christian Lacroix and Bruno Frisoni, Lukoff, currently director ed by Bottega president and store with a Christmas-themed pictured at left at the ceremony during of business development at ceo Patrizio di Marco on Jan. cocktail party, dinner and after- which Jean-Jacques Picart was named a Lanvin, will join the London- 1. Bizzarri will take over from party featuring up-and-coming chevalier of arts and letters in Paris, were based fashion house, effective di Marco. Stella McCartney and rock band Golden Silvers. The misidentifi ed in a Fashion Scoop photo Feb. 23. An announcement is Bottega Veneta are owned by company also plans to open on page 5, Wednesday. expected as early as today. Gucci Group. with local partners a string Lukoff will succeed Marco Robert Polet, president and of franchises, including units • “The Martha Stewart Show” is nationally Bizzarri, who is joining Bottega ceo of Gucci Group, said Lukoff in Kuwait, Dubai, Abu Dhabi, syndicated by NBC Universal Domestic Veneta as part of a manage- has a proven track record in Jeddah and Qatar. Television Distribution. This was incorrect in a story on page 8, Tuesday. COMING THIS WEEK TODAY ON • WWDTrend: This spring, shimmer and iridescence TUESDAY: Sears Holdings Corp. reports THURSDAY: WWD Media Summit, New York. give bags, shoes and baubles a little kick. third-quarter sales and earnings. • Istanbul Leather Fashion Fair • More photos of Karl Lagerfeld’s fi lm tribute (through Saturday). to Coco Chanel and Marc Jacobs WEDNESDAY: The Federal Reserve • Major U.S. retailers report November WWD Stephen Sprouse-inspired collection Board releases the Beige Book same-store sales. economic report. .COM • Global breaking news • Aéropostale Inc. reports FRIDAY: The U.S. Labor Department releases

• Daily stock prices JOHN AQUINO PHOTO BY third-quarter sales and earnings. the November employment report. WWD, MONDAY, DECEMBER 1, 2008 5 WWD.COM

▲ Lagerfeld poses with fi ve top seamstresses, costumed as French women working in Chanel’s hat business in 1913. Chanel’s Silent Style A GLAMOROUS, BIG-BUDGET SHORT FILM OF THE SILENT VARIETY WILL premiere in Paris this week, and it’s all due to Chanel and Karl Lagerfeld, who donned a director’s hat and let rip his encyclopedic knowledge of Gabrielle Chanel’s early years. The 10-minute movie — in all its fl apper glory, as these stills illustrate — will be screened at Le Ranelagh theater on Wednesday night, along with a showing of Chanel’s Paris-Moscow, a luxury pre-fall ready-to-wear collection embellished by the couture ateliers Chanel owns. “Today, people are ready for silent movies again, as they spend time — hours, I would say — looking at text messages and e-mails,” says Lagerfeld. “I always loved silent movies.” The designer gathered some familiar members of his entourage, including model Brad Koenig and his bodyguard/

private secretary Sébastien Jondeau (mustachioed and ▲ Tallulah Ormsby-Gore plays a model, here being fi tted with a 1913 vintage hat. surly as a Russian nightclub owner), for the cast, along with ▲ Vilkeviciute as Gabrielle Chanel in 1923. model Edita Vilkeviciute, her gamine allure, jutting chin and ramrod posture creating a beguiling portrayal of the young Coco from 1913, when the legendary designer fi rst set up shop. As reported in WWD Nov. 17, Tallulah Ormsby-Gore plays a Chanel model who has to sell her real-life mother, Lady Amanda Harlech, a hat in the fi lm. Even the workers in the Chanel atelier got to play parts as workers in the fashion house. “I cannot take extras,” Lagerfeld notes. “They don’t For more, see WWD.com. know how to touch the clothes.” The second part of the fi lm takes place in 1923, when Chanel was already established, and is interspersed with newsreel images from the First World War. The plot, ▲ Model Edita Vilkeviciute as conveyed with title cards, involves a fascinating cast Gabrielle Chanel in 1913. of characters, many tied to Russia, including Chanel’s lover the Grand Duke Dmitri Pavlovich, from whom she borrowed the pea jacket and pelisse, giving them a feminine touch. “It’s a funny movie, unpretentious,” says Lagerfeld. “Chanel was a charming woman, at liberty to seduce men. Everybody this year has decided to make a movie about Chanel, and you know their historical worth is not always too exact.” Lagerfeld’s mini movie took two days to shoot in a studio on the outskirts of Paris, and was “made like a Hollywood production,” the designer says. “I had every image in my head.” As for the collection he will show, he says it will be “constructed,” incorporating elements of imperial Russia and Russian folklore. — Miles Socha, with contributions from Ellen Groves

▲ Sébastien Jondeau as a Russian general. ▲ A delivery of hat boxes, circa 1913, with authentic labels. 6 WWD, MONDAY, DECEMBER 1, 2008 WWD.COM Mumbai Attacks Shake Confi dence Cavalli Cleared in Tax Case By N. Vasuki Rao for a few days, but will return to normal after By Luisa Zargani Roberto Cavalli that,” asserted K. Ramesh, a Chennai-based se- BANGALORE, India — In the wake of last week’s nior vice president for business development at MILAN — After years of legal deadly terror attacks on Mumbai, mall owners DLF Retail Developers Ltd. “I don’t expect much debate and media scrutiny, vowed to step up security, while international negative impact on foreign investments to India.” Roberto Cavalli has been fully luxury goods executives said the tragedy could New Delhi-based DLF, the largest real estate cleared by Italy’s Supreme Court slow the market’s growth in the short term. company in India, is the developer of the recently of Cassation of a tax evasion in- Malls in Mumbai were deserted late last week opened Emporio mall in the Indian capital, which dictment. after police advised people to stay indoors. counts Dior, Cartier, Jimmy Choo, Louis Vuitton The country’s major court of “It is the scale of what has happened in and Emporio Armani among the tenants. last resort annulled the verdict Mumbai that will cause short-term prob- Ramesh said because of the economic down- issued by the Appeal Court in lems,” said D.K. Nair, secretary general of the turn, real estate developers cannot expect good Florence last Jan. 21, which up- Confederation of Indian Textile Industries. returns on initial investments for some time as held a conviction of the designer Nair said he did not expect the attacks to have rental rates are down. However, he was hope- on charges of fi scal evasion. In a long-lasting impact, however. “It will impact ful the situation would improve in two or three March 2006, the Florence court business confi dence for two or three months, but years. DLF will go ahead with its projects after had found Cavalli guilty of tax I expect things to recover after that,” he added. studying market conditions, he added. evasion and sentenced him to But in the short term, hotels and tourism are Mumbai, India’s fi nancial capital, faced its 14 months in prison, although expected to take a hit, with foreigners canceling worst terror assault in years after terrorists at- an Italian legal technicality ex- planned visits to India. tacked two luxury hotels, the Taj Mahal Palace empted the designer from ever As reported on WWD.com last week, the and the Oberoi, a major railway station, and other serving jail time. International Herald Tribune postponed its an- public places last Wednesday. “I’m very pleased,” Cavalli nual luxury conference, which had been sched- More than 180 people were killed and about 300 said in an interview. “As anyone who has lived in Italy long enough uled to take place Wednesday and Thursday in injured, including foreigners, in the attacks, with vio- knows, it sadly happens often that people in the limelight are at- New Delhi’s Imperial Hotel. The Paris-based lent standoffs fi nally coming to an end on Saturday. tacked for personal reasons and falsely accused, and things are only newspaper said it planned to bring the summit to Among those killed were the two former own- checked at a later date.” New Delhi in March. ers of French lingerie fi rm Princesse Tam Tam, The accusations date back to 2002, when tax authorities claimed The annual event, hosted by IHT’s fashion Loumia Hiridjee, 47, and her husband, Mourad Cavalli evaded fi scal responsibilities by trying to put about 5 bil- editor Suzy Menkes, was expected to have ad- Amarsy, 49, according to Bernard Kouchner, the lion lire, or $3.2 million at current exchange rates, of renovations dresses from PPR chief François-Henri Pinault, French minister of foreign affairs. The couple to his luxurious Tuscan villa on his company’s books. In 2003, the was killed while dining designer rejected a plea bargain offer, saying he intended to prove at the Oberoi. The couple his innocence. had spent half their time Roberto Cavalli SpA dismissed the charges, saying the fi rm com- in Mumbai since 2007. missioned all of the work done on the house. Loumia Hiridgee, a na- Cavalli started living in what is considered one of the biggest tive of Madagascar and a properties in Florence in the early Seventies. The company stated French citizen, started the the designer’s 12th century estate — fi lled with antique wooden upscale intimates company Madonna statues, marble reproductions of horses and precious

PHOTO BY PAL PILLA/AFP PHOTO PAL PHOTO BY in France in 1985 with her animal-print rugs, and including a helipad and two swimming pools sister Shama. The compa- — also serves as his headquarters. ny was sold in 2005 to Fast The designer has over the years held special events and product Retailing of Japan. Despite launches at the estate, including the unveiling of his eyewear line having sold the company, licensed to Marcolin and the presentation of his collaboration with Hiridjee remained a design H&M. A number of ad campaigns have also been photographed on consultant for the fi rm. The the estate and in the villa’s park, which has a view over Florence. Princesse Tam Tam collec- “This has been a painful journey, but we were always convinced tion is distributed in the of being in the right,” said Cristiana Cavalli, daughter of the design- U.S. by NAP Inc. er and president of the company. “We have shown that there were The Taj hotel is a major never fi ctitious activities or expenses.” luxury retail hub hosting Cavalli is not the fi rst designer to battle Italian tax authorities. stores like Louis Vuitton, Earlier this year, Italian authorities opened a criminal investiga- Fire rages out of the dome of the Taj hotel. Fendi, Bulgari, Ermenegildo tion into the Dolce & Gabbana fashion group following allegations Zegna and Burberry. of tax evasion. Gianfranco Ferré, Santo Versace, Mariuccia Mandelli along with designers Nicolas Ghesquière, Stella Vuitton, Fendi and Burberry said Friday all their of Krizia and their business associates were indicted in July 1995 McCartney, Roberto Cavalli, Tomas Maier, Dries employees were safe, but had no information on on charges of corruption and bribing tax police in return for swift, Van Noten and the Dutch duo Viktor & Rolf. when the Taj might reopen due to the widespread trouble-free audits. While the designers were originally found A host of European luxury brands have plant- damage to the building. A Vuitton spokeswoman guilty, a higher court overturned the verdicts and found that they ed their fi rst stores in India this year, including said the fi rm planned to open a temporary loca- were victims of extortion. McCartney, Hermès, Cartier, Lanvin and others, tion, with details forthcoming. At that time, Giorgio Armani, Gerolamo Etro and Krizia chair- characterizing the country as a promising future The nearby Oberoi houses boutiques including man Aldo Pinto were also indicted on similar charges, but pleaded market, but one that is years behind China. Cities Salvatore Ferragamo, and a Ferragamo spokes- guilty in May 1996 before the trial began. They, too, said they were lack infrastructure for modern retailing, and the man said the director of its boutique was injured victims of extortion, but took plea bargains to end their cases as upper middle class is underdeveloped, meaning Wednesday night on the street. quickly as possible. limited spending power and footfall in stores. This was not the fi rst time Mumbai and other “India is a very small part of our business be- Indian cities have faced attacks from terrorists. cause of taxes,” said Bernard Fornas, president of Serial bomb blasts have rocked Indian cities Cartier International. “The terrorist attacks are eight times this year. Green Sells Moss Bros Stake horrible, but they will impact business very little.” Even before the attacks, foreign investors had Elisabeth Ponsolle-Desportes, the delegate been pulling out money from Indian stock markets By Nina Jones general of the Comité Colbert, an association steadily since January, and stock indices have of France’s luxury businesses, said the commit- fallen nearly 60 percent this year. Government offi - LONDON — After saying he wouldn’t make a bid for men’s wear re- tee recently has been strengthening its ties with cials expect foreign direct investments to continue tailer Moss Bros, Sir Philip Green has offl oaded his 28 percent stake India, which is a promising growth market for fl owing in, though, owing to the strong fundamen- in the chain. luxury in the future, despite its current prohibi- tals of the Indian economy. Ajay Shankar, India’s Green released a statement to the London Stock Exchange Friday tive tax restrictions. secretary of commerce and industry, said in New saying Warbeck, his family investment company through which he She said the committee’s 71 members, which Delhi that India had received $17.21 billion in FDI took the stake, had sold its Moss Bros shares to a trust represented include Guerlain and Louis Vuitton, collectively between April and September this fi nancial year, by Simon Berwin, which already owned a small percentage of Moss only do 70 million euros, or about $87.5 million at which was 137 percent higher than investments in Bros. Berwin is managing director of the British men’s wear manu- current exchange, of business in the populous na- the fi rst half of the previous fi scal year. He said facturer and distributor Berwin & Berwin. tion. Overall, the committee’s members generate the government might relax rules further to attract Berwin told WWD that he and his partners in the trust last week 22 billion euros, or $27.5 billion, in net sales. more FDI and take additional monetary measures sold some of their shares in Moss Bros, so the trust’s stake stands at “The events in Mumbai will most certainly re- to boost demand for high economic growth. 29.99 percent. If their shareholding had risen above 30 percent, that verberate in India, slowing down an already dif- India’s economy grew by 7.6 percent in the would have required the trust to make an offer for the remainder of fi cult growth process,” said Roberto Cavalli. “The September quarter from a year earlier, but eased Moss Bros’ shares since it is a public company. local market is a receptive and interesting one from the previous quarter’s 7.9 percent as mon- Berwin said his trust isn’t planning a takeover bid for the re- for luxury goods but maybe not totally ready. As etary tightening curbed demand, according to tailer. “All we are is an investor, but we look forward to meeting far as I’m concerned, we’re moving very cautious- government data. with the board shortly, to see if we can help [with the business],” ly and we expect to further penetrate India next Ratings agency Standard & Poor’s does not be- said Berwin. year. It’s very hard to make long-term estimates lieve the Mumbai attacks will affect India’s sover- In September, Moss Bros reported a pretax loss of 1.6 million on when the market will pick up again since the eign rating providing there aren’t other acts to fol- pounds, or $2.4 million, for the six months to July 26, compared with attacks just took place.” low, it said Thursday. “Based on the scenario that losses of 700,000 pounds, or $1 million, for the same period the pre- Despite the attacks, it is understood Alexander these attacks were an isolated case, we don’t expect vious year. A spokeswoman for Moss Bros declined all comment on McQueen is going ahead with plans to open a there would be negative implications on India’s Berwin’s stake, but said it is “business as usual” for the retailer. boutique in Mumbai, though an opening date has macroeconomic activities or the government’s fi scal Green said he sold his 26.8 million shares in Moss Bros for 28.85 yet to be set. The designer signed a deal with TSG position,” credit analyst Takahira Ogawa said. pence, or 44 cents, a share, after buying the stake last month for International Marketing Pvt. Ltd. in June to open — With contributions from Alessandra Ilari, Milan; 24.95 pence, or 38 cents, a share. The transactions generated about a six stores in India over the next two years. Robert Murphy and Katya Foreman, Paris; $1.6 million profi t for the British retail titan, who also owns Topshop “Business in shopping malls will be affected Nina Jones, London, and Karyn Monget, New York parent Arcadia Group Ltd. and British Home Stores. WWD, MONDAY, DECEMBER 1, 2008 7 WWD.COM

▼ The Monogram Louis Vuitton Reimagines Sprouse Collaboration Roses Neverfull bag.

By Marc Karimzadeh NEW YORK — Marc Jacobs and Louis Vuitton are paying homage to Stephen Sprouse. To show their admiration for the late designer and artist, next month, Jacobs, Vuitton’s creative director, is using his hit 2001 collaboration with Sprouse for a new, limited edition collection of acces- sories and ready-to-wear. Jacobs even doffed his duds again, posing in the nude painted in Sprouse’s graffi ti for Harper’s Bazaar’s January issue. This comes at a time of renewed buzz about Sprouse, whose graffi ti prints and Day-Glo clothes became a defi ning aesthetic of the early Eighties. It coincides with a retrospective — called “Rock on Mars” — at Deitch Projects’ 18 Wooster Street gallery from Jan. 8 to Feb. 28, and “The Stephen Sprouse Book,” by Roger Padilha and Mauricio Padilha, due out from Rizzoli New York on Feb. 1. The impetus for the new line came when Deitch approached Jacobs and Vuitton about doing something related to the retrospective. “I proposed putting together a Vuitton version of the Pop Shop, which was Keith Haring’s concept…not reissuing products that we had done with Stephen, but doing things that were similar or new,” Jacobs said. Sprouse died in 2004, and the new trib- I tried to take what ute pieces, which hit Vuitton boutiques “ worldwide Jan. 9, pick up almost seamless- Stephen had done at ly where the 2001 collaboration left off. Jacobs took two iconic Sprouse motifs Vuitton and then kind of — the graffi ti and the rose — and inter- preted them in Day-Glo shades of pink, fl ip it in my head, and green and orange over the Monogram print. The motifs are featured on Vuitton’s Keepall, Speedy and Neverfull make it Vuitton’s work for bag styles, as well as basketball sneaker boots, pumps, sunglasses, headbands Stephen, not Stephen’s and wristbands, and small leather goods like wallets and coin purses. The rtw work for Vuitton. includes a mackintosh raincoat with a —” Marc Jacobs graffi ti and monogram lining, graffi ti leg- gings and a long-sleeve neon minidress featuring the rose design. “I tried to take what Stephen had done at Vuitton and then kind of fl ip it in my head, and make it Vuitton’s work for Stephen, not Stephen’s work for Vuitton,” Jacobs said. “I just felt it was a funny way to play with it, to pretend to be Sprouse for a bit, and use the work that he did, and then bring it back to the work that he did before I collaborated with him.” The original collaboration has its origins in the time when Jacobs was looking for a Paris apartment. When he looked at Charlotte Gainsbourg’s space on the rue du Bac, he stumbled across a Vuitton Monogram canvas trunk, which the actress’s legend- ary father, Serge, had painted over in black. It eventually inspired him to collabo- rate with Sprouse for spring 2001. “For me, this monogram graffi ti was the fi rst milestone of our permanent re- invention of our history,” said Vuitton president and chief executive offi cer Yves Carcelle. The uncompromising, head-to-toe Sprouse aesthetic is timeless, Jacobs noted. “It almost becomes a classic, like a Chanel jacket, or a smoking,” he said. “It’s this idea of a head-to-toe look in this brash, neon, rock ’n’ roll, edgy, street- ▲ Marc Jacobs shot by Terry informed style. Sprouse really best personifi ed it.” Richardson for the January issue of Vuitton will pay further tribute with a special Web site — welovesprouse. Harper’s Bazaar. com — slated to go live Dec. 15. It will feature a mix of interviews with people who knew Sprouse, including Debbie Harry, Candy Pratts Price and Patricia Field. In the clips, they muse on their relationship with Sprouse, and his lasting infl uence on the fashion and art worlds. There will also be a feature called “Scrawl the Wall,” where visitors can post comments, and a special section on Sprouse’s New York, For more, see WWD.com. highlighting some of the artist’s favorite haunts in the city. “The thing that excited us the most is that somebody who disappeared years ago is going to be the center of life worldwide thanks to that for the next few months,” Carcelle said. “We really want to celebrate a friend.” As for the Harper’s Bazaar story, it was shot by Terry Richardson and features Jacobs naked, his body painted in Sprouse-style graffi ti and his relevant portions covered by ▼ A ballerina fl at one of the new Vuitton bags. Richardson also shot racier images of Jacobs completely with the rose motif. in the nude, though these will not be featured in the Bazaar story. The mackintosh “I don’t have a problem taking my clothes off, as anybody who has picked up a and leggings. magazine in the past year could tell you,” Jacobs said. “I had no qualms or shame about it but knew fully well that any full frontal nudity wouldn’t be appropriate for Harper’s Bazaar.” MEMO PAD VOGUE, THE MOVIE: The fi lms in competition at the next but the Time Inc. title did so by relying on archival images. Century Fox, the fi lm’s distributor. Sundance Film Festival won’t be announced until the middle Essence’s January issue is dedicated to President-elect Barack Also on hand to cheer were of this week, but insiders are already saying that R.J. Cutler’s Obama, with essays and commentary from Maya Angelou, Jackman’s co-star, Nicole Kidman, as documentary about Vogue has a good shot at making the cut. Bill Cosby, Chris Rock, Gwen Ifi ll and other notable African- well as Naomi Watts and Lauren Bacall. Announced in December 2006, the documentary was produced Americans. The issue has two covers: one of Barack by At the after party at the Plaza, guests by A&E Indie Films and focused on the preparation for the photographer Ben Baker from a shoot for Fortune earlier this including Gayle King, Helena Christensen, magazine’s September 2007 issue, with the full cooperation of year, the other of an inaugural-looking Michelle shot during Harvey Weinstein, Kelsey Grammer editor in chief Anna Wintour and staff. A spokesman for Vogue the summer of 2007 by photographer Jim Wright. Essence and and Donna Karan fi lled the Palm Court referred a reporter to Cutler, whose spokeswoman said he was Ebony are both planning special January coverage of Obama’s for a buffet dinner. Gossip Girl Blake traveling and couldn’t be reached. — Irin Carmon journey to the White House. Meanwhile, Vogue said it was Lively gushed, “I can’t believe I’m at the interested in featuring the soon-to-be fi rst lady in the magazine, premiere. I love big romantic movies,” STEVE EICHNER PHOTO BY DUO TYPE: Proenza Schouler’s Lazaro Hernandez and Jack but no plans have been fi nalized. — Stephanie D. Smith while holding onto her boyfriend (and co- Hugh Jackman with McCollough have been tapped to guest curate (or guest edit, as star) Penn Badgley. “I just got a call this Nicole Kidman in some throwbacks might describe it) avant-garde Belgium fashion OZ COMES TO NEW YORK: Director Baz Luhrmann worked on his afternoon from my friend inviting me.” Dries Van Noten. publication A Magazine. Martin Margiela, Yohji Yamamoto and epic fi lm, “Australia,” to the last minute, but he didn’t display Murdoch’s daughter, Elisabeth, arrived just Givenchy’s Riccardo Tisci are some of the designers who have lent too many frayed nerves at the movie’s New York City premiere in time to support her dad, having spent her evening hosting the their efforts to the publication, which was founded in 2004. The last week. Neither did his star, Hugh Jackman — except for one Daytime Emmys. “I just came to say hi,” she said. “I’m looking Proenza Schouler edition comes out in the spring. — Ellen Groves moment of trepidation. forward to seeing the fi lm.” “I’m a little nervous because there is another Australian Meanwhile, Aussie model Kylie Bax explained the biggest UNTIL THEY GET THE REAL THING: Essence may have scooped here named Rupert Murdoch and he hasn’t seen the fi lm yet, misconception she thinks people have about her native land: Vogue, sort of, in being the fi rst women’s magazine to put so please clap along,” he begged the audience at the Ziegfeld “That the Aboriginals are cannibals,” she said, matter-of-factly. Michelle Obama on its cover since the presidential election, theater. Murdoch, of course, is the mogul who owns 20th “They are actually sweet, gentle people.” 8 WWD, MONDAY, DECEMBER 1, 2008 Black Friday Sales Up at Margins’ Expense

By David Moin RETAILERS WENT INTO BLACK FRIDAY WEEKEND with low expectations and came out with a sense of relief. The traffi c arrived, thanks to unprecedented markdowns that will take a big bite out of fourth-quarter profi ts. holiday Outlets and discounters, which staged the biggest bargains on designer clothes and electronics, were busiest, though executives from department stores and specialty chains contacted Sunday said they were also pleased by the turnout. ’08 “Some of us were wondering whether shoppers would come out at all,” said one retail chief executive who requested anonymity. “Black Friday is still one of the biggest days of the year,” said Terry Lundgren, chairman, president and chief executive offi cer of Macy’s Inc. It’s typically the second largest volume day of the year, eclipsed only by the Saturday before Christmas, he noted. “I went to lots of stores and there was clearly a lot of traffi c in malls and outlet centers,” said Steven I. Sadove, Saks Fifth Avenue’s chairman and ceo. “Customers were shopping for deals. If you had sharp price points, you were seeing volume.” More than 172 million shoppers visited stores and Web sites over Black Friday weekend, up from 147 mil- lion shoppers last year, according to the National Retail Federation’s 2008 Black Friday Weekend survey of 3,370 consumers, conducted by BIGresearch. Shoppers spent an average of $372.57 last weekend, up 7.2 percent over last year’s $347.55. Total spending reached an estimated $41 billion. The survey was conducted Nov. 27 to 29. “Pent-up demand on electronics and clothing, plus unparalleled bargains on this season’s hottest items helped drive shopping all weekend,” said NRF presi- dent and ceo Tracy Mullin. Louis However, she warned that, in light of the recession, “hol- Vuitton’s iday sales are not expected to continue at this brisk pace, festive but it is encouraging that Americans seem excited to go facade shopping again.” Declining gas prices didn’t hurt either. on 57th Retailers remain desperate to move inventories that Street. are outsized in proportion to demand, and some expect consumers to take a breather after last weekend, lead- ing to a lull in shopping that could last until a week or two before Christmas. They are also concerned about declining tourism, particularly affecting big fl agship stores in gateway cities. Further bad news is expected to arrive on Thursday, when major retailers report November comparable- store sales. Comparisons to last year won’t be pretty be- Shoppers were sold on cause stores were handicapped by Thanksgiving falling deep discounts at Saks. fi ve days later this year than last, meaning there were fewer big shopping days in November. However, the shortfall could be made up in December and retailers A crowd of about 5,000 stormed Macy’s Herald Square our prices were very sharp. Overall, the customer was warn not to read too much into the November results. on Friday at the 5 a.m. opening, when 200 doorbusters defi nitely out there shopping.” A truer read of the season would come from examining compared with last year’s 20 were offered. There were By Saturday, store traffic was already subsiding the combined sales of both months. no incidents. Lundgren was on the scene and concluded, across the country, but the NRF said it was still better Further scars on the season occurred Friday at a Wal- “There was some pent-up demand,” as he watched the traf- than the Saturday after Thanksgiving a year ago. As ex- Mart in Valley Stream, N.Y., and at a Toys ‘R’ Us in Palm fi c. Before Thanksgiving, Macy’s and other stores offered pected, many shoppers purchased clothing and accesso- Desert, Calif. At the Wal-Mart, a stampede of bargain sharp markdowns, but Lundgren said the pre-holiday pro- ries over the weekend, while also popular in descending hunters at the opening resulted in the death of one store moting wasn’t particularly effective. It took the allure of order were books, DVDs, CDs and video games and con- worker who was trampled. No arrests have been made Black Friday and the promise of even better deals — plus a sumer electronics. Toys were also big sellers, though gift yet, and store videos are being reviewed. Amid the chaot- long holiday weekend — to get consumers to shop. cards dropped 10 percent against last year. NRF contin- ic crowd, it could be tough to determine who is to blame, To cope with what retailers are calling their toughest ues to project that holiday sales will rise 2.2 percent this although the incident set off a fl urry of criticism of both season ever, the key strategy is to mark down fast and fu- year to $470.4 billion. Wal-Mart’s alleged lack of adequate security personnel riously, in many cases 50 to 75 percent off, as steep as dis- Here, a look at the weekend by retail channel: and the inhumane crowd desperate for a bargain. A col- counts would normally be after Christmas. One principal umn in Sunday’s New York Times labeled the incident said, for example, that with a turtleneck, regularly priced BROADLINE STORES Wal-Mart’s “Guernica” after Picasso’s famous painting. at $50, it’s better to mark it down to $29.99 right away, and At Bloomingdale’s, “The customer found great value,” Hank Mullany, senior vice president and president of maybe sell out, than mark it down to $39.99, sell some and said Michael Gould, chairman and ceo. “For soft goods, the Northeast division of Wal-Mart U.S., said on Friday, need to mark it down again later. Stores must clear inven- it was the best week of the fall season so far,” a result of “We expected a large crowd this morning and added ad- tories to make room for spring goods which start arriving the values offered, as well as “pushing newness and fresh ditional internal security, additional third-party security, in mid- to late January. If the fall goods aren’t cleared in receipts.” Contemporary men’s and women’s sportswear additional store associates and we worked closely with the the stores or outlets, the merchandise gets sold to jobbers were very strong categories over the weekend, he added. Nassau County Police. We also erected barricades. Despite for a tiny fraction of its cost. Steve Pernotto, executive vice president, Belk Stores, all of our precautions, this unfortunate event occurred.” “If you take the markdowns now and move the inven- said Black Friday business “didn’t meet our overall expecta- He added, “Our thoughts and prayers go out to the tory, you will get through this and come out stronger tions, but we were encouraged by the outcome. We noticed family of the deceased. We are continuing to work close- later,” Lundgren said. Asked about the impact on profi ts, we were selling the same number of items in the morning, ly with local law enforcement and we are reaching out Lundgren replied, “Of course, it will take a bite out. We but at a lower average retail price. In the early afternoon, to those involved.” have already forecasted profi ts down.” the trend changed and overall sales were much stronger At the Toys ‘R’ Us, two men were shot and killed in- “You need to make sure you get through your invento- than last year.” The lowest-priced items weren’t necessarily side the store. Police were continuing to investigate, ry over the next four or fi ve weeks,” explained Brendan bestsellers. Shoes, fashion accessories, men’s and women’s according to reports. Hoffman, ceo of Lord & Taylor. “We’re in relatively good sweaters, denim and electronic gadgets sold well. Retailers reacted to the Wal-Mart incident by saying shape with the sales per stock trend. With all of the un- J.C. Penney said Black Friday shopping was strong it could lead to changes in security and crowd control in certainty, the need to work down inventories is even across all areas of the country with customers respond- response to doorbusters, and to tempering the character more important this year. A markdown you take today is ing well to the gift assortments and value. Some bestsell- of the early-bird offerings which can create a climate cheaper than a markdown you will take later.” ers were the “red box gifts” including the Marshmallow of frenzy over limited offerings. The New York Times Traffi c at L&T “really built as the day went on,” Popper, USB turntable, Razor Ripstik, MP3 players and reported Saturday that fi ghts and injuries occurred at Hoffman said. “It certainly exceeded our very conserva- Einstein Hand Held Games. “Practical” gifts, such as other Wal-Marts around the country. tive expectations, but it came at a price. We made sure sweaters, boots, wool coats, luggage, denim, small elec- WWD, MONDAY, DECEMBER 1, 2008 9 WWD.COM

Lenox Mall in Atlanta.

Lord & Taylor offered “very sharp” prices. Discounts were everywhere.

Macy’s in Chicago. Apple broke from tradition by offering discounts. NEW YORK PHOTOS BY KYLE ERICKSEN; ATLANTA BY MARK PETKO; CHICAGO BY BETH WILSON CHICAGO BY MARK PETKO; BY ERICKSEN; ATLANTA KYLE PHOTOS BY NEW YORK tronics and cookware, as well as junior and young men’s rather than gifting. Lanvin, Pringle of Scotland, and for the big shopping day and looking for a combination apparel, and fi ne jewelry also sold well. Jerome Dreyfuss handbags were standouts. “The people of great gifting options and great deals.…We continue Lord & Taylor said shoes, handbags, coats, cosmet- we know will be incensed if the Big Three [GM, Ford, to expect this holiday shopping season to be challeng- ics and men’s classifi cations, as well as Uggs were hits. Chrysler] aren’t given the bailout,” Daskas said. ing, due to ongoing macroeconomic softness and uncer- However, according to one executive from a different Bob Mitchell, co-president of Mitchells/Richards/ tainty and the related decline in consumer confi dence department store, “There were no big mind blowers.” Marshs in Connecticut and New York, which attracts and spending.” Target stores opened at 6 a.m. on Friday for the retail- a large Wall Street and hedge fund clientele, said: Ann Taylor featured $30 off cashmere sweaters, 25 er’s annual 2-Day Sale. Lines formed as early as 4 a.m. “Business continues to be very challenging. Traffi c is percent off outerwear and sale items, in addition to 20 and turnout was strong with steady traffi c throughout the off signifi cantly and this weekend was no different. And percent off entire purchases through noon. Loft fea- day, a spokesman said. Customers headed straight to the with the calendar shift, Thanksgiving was a week later tured a $29.50 event with key sweaters and gifting items electronics department where hot items were the TVs so we have a lot of ground to make up in December.” and offered 40 percent off sales items, in addition to a advertised on the cover of the 2-Day Sale circular, GPS He noted that traditionally, Thanksgiving weekend is 20 percent off early-bird special through noon. systems, iPods, Nintendo Wii’s and DVDs. “Overall, not as strong for his stores as for big-box retailers. “The Gap Inc. saw good traffic across Gap, Banana guests were upbeat and said they appreciated how or- weekend after is much bigger,” he said. “But the combi- Republic and especially the lower-priced Old Navy ganized Target is for the busy shopping day,” the spokes- nation of the economy and the decline in traffi c made stores. Outlet stores opened at midnight Black Friday, man said. “The maps, which were handed out to guests the numbers less than robust.” and other promotions included Samsung MP3 giveaways as they waited in line or arrived at the door, highlighted Mitchell said the stores were forced to cut price this with purchases of $20 or more, and buy-one-get-one free where hot items were located and were a big hit.” Target year “several weeks earlier than last year, but it’s still specials on adult and kids’ sweater sets. “We know it’s previewed its two-day sale circular online at 2 a.m. (CST) not driving people in the door. The competitive land- tough out there today with the economy and we’re work- Wednesday. As of noon that day, more than 1.5 million scape with all the markdowns is not helping retailers ing hard to bring people in across all brands, promo- people had gone online to see the “sneak peek.” and is confusing customers,” he said. Ironically, the tions helped us there,” said spokeswoman Kris Marubio. company’s best performer is Hermès, the only nonpro- “Still, everyone is managing inventory very tightly.” LUXURY motional business in the store. “The distribution is so Apple, which rarely discounts, held a one-day sale Neiman Marcus promoted discounts of 50 to 65 per- tight and there are so few places to buy it, and people Saturday which brought the company’s pricing into line cent off fall and holiday goods on Friday and Saturday. know that,” he said. with approved Apple retailers, such as Amazon and In previous years, those markdowns would be reserved Mario’s, in Seattle and Portland, said customer traffi c PC World, which regularly reduce Apple products. For until after Christmas. “The statement jewelry seemed was strong, though markdowns have been “sneaking in example, the iPod Shuffl e started at $49 and the iPod to be hot this weekend as well as lace and berry tones, earlier than last year to keep up with the competition,” Nano, started at $149. and scarves are doing surprisingly well,” said Ginger said Lynwood Holmberg, creative director and women’s Forever 21, with an average sales ticket of less than $50, Reeder, vice president. “We’re certainly more promo- buyer. “It’s not a matter of our business being be down. used low price points on trendy merchandise as an advan- tional than we would like to be. It’s a response to the It’s by how much.” tage Friday. The chain reported higher foot traffi c than current economic climate and an attempt to remain last year and stronger sales, but didn’t get specifi c. Stores competitive and not make a change in our strategy.” SPECIALITY CHAINS lured shoppers with gift card promotions, with the fi rst 100 Tender, a designer boutique in the Detroit suburb of At AnnTaylor Stores Corp., “Our performance on to 150 people getting cards worth $10, $21 or $300. Birmingham, had a 35 percent gain last weekend driven Black Friday was somewhat stronger than we were ex- Scott Baskin, president of Mark Shale, a men’s and by a 50 percent discount off all fall and holiday goods, pecting at both divisions — particularly Loft,” said Kay women’s specialty store chain, said Black Friday was said Karen Daskas, co-owner. She saw self-purchasing Krill, president and ceo. “Clients were clearly waiting Continued on page 10 10 WWD, MONDAY, DECEMBER 1, 2008 WWD.COM

Touch. The most searched for product on eBay across funds for pediatric brain cancer. all categories was the Nintendo Wii console, 3,171 of “Traffi c is down, but this weekend is typically an Discounts Lure Shoppers which sold on the site. Following that was the Nintendo electronics focus,” she said. “We’re serving hot cider, Wii Fit with 1,059 sold on the site. providing great service and have caroling for custom- Continued from page 9 Meanwhile, there’s some debate about Cyber Monday ers who are coming in.” Top performers so far this sea- better than anticipated. “Our expectations were some- [today] and whether sales online will soar. L&T’s son include Uggs as well as scarves and gloves. “This what muted,” Baskin said. Locations in Dallas, Kansas Hoffman said that when he was running Neiman Marcus is going to be a big accessories year,” she said. “People City, St. Louis and Chicago suburb Oakbrook were Direct, he never really noticed much of a spike. He may not pick up a new coat, but they’ll buy a cashmere among the best performing with women and men buying thinks it may have been more valid when people had shawl or a fur-lined scarf.” mostly for themselves, he said. There were no particular less faith in Internet companies being able to deliver bestsellers or trends discernible. “It was a little bit of goods on time for Christmas. He expects a surge online MALLS everything,” he said. “All the big department stores are around the Dec. 10 to 15 period, with ordering steady Deborah Harvison, vice president of mall market- cutting prices and we’re doing our best to catch up and up to Dec. 21. ing for Simon Properties mid-Atlantic region, said that, stay even.” Along Michigan Avenue, “It was just my ob- based on late Friday reports, “overall, we won the bat- servation, but it seemed like there were a lot more peo- INDEPENDENTS tle. Malls are holding their own.” ple eating hot pretzels than carrying shopping bags.” Jim Wetzel, co-owner of Jake, a men’s and women’s spe- A spokesman for Simon Property Group said consum- Khajak Keledjian, Intermix co-founder, also lamented cialty store with locations in Chicago’s Gold Coast and sub- er electronics were strong sellers. Both Gamestop stores department store promotions. “They are rolling out in- urban Winnetka, said he was “shocked” and “encouraged” at the Mall at Rockingham Park, Salem, N.H., were fi lled sanely competitive incentives in reaction to the fi nancial by brisk Black Friday business. “We haven’t seen these with customers and the Apple store was busy with shop- climate. The whole fashion sense and appeal is gone. It kinds of crowds in a year,” said Wetzel, who noted that his pers buying iPod Nanos and MacBooks. Brookstone beat has completely ruined the season, with incentive points, sales were up about 5 percent. “It was like someone fl ipped their sales objective by noon. offers of no interest for one year, markdowns on new mer- a switch and said it’s OK to shop again. People were having At the Burlington Mall, in Burlington, Vt., “Apple is chandise that’s not even two weeks old, and basically 70 fun and getting into it. Sale was the magic word.” offering discounts today, which is new for them,” the percent discounts from original prices. They are wiping Ikram Goldman, owner of Ikram, on Chicago’s Rush Simon spokesman said on Saturday. “Foot traffi c is out specialty retailers and young designers.” Street, said she encountered an equally festive vibe high on a sunny day with temperatures at 60 degrees. On the positive side, new resort pieces are selling, among customers. “There were so many people out this Shoppers are taking advantage of Simon’s Rejuvenation particularly when combined with day, evening and weekend and people are really hopeful with the new Stations at the malls, which offer free coffee, chair mas- cruise looks. “The mentality of our customers at the mo- president. In Chicago, people are so excited about this sages and hand massages.” ment is having multiple reasons and occasions for each man. There’s a sense of safety with him.” Rampant discounting lured more shoppers to item in their wardrobe,” Keledjian said. “For example, For Gus Mayer, based in Birmingham, Ala., with a NorthPark Center in Dallas over the weekend, and many we are styling the new Stella McCartney resort jump- Nashville, Tenn. store, “Business was quieter this year, stores made or exceeded their plans, according to Chris Macy’s was pleased by Black Bloomingdale’s saw big crowds. Friday turnout.

American Eagle Outside Saks Fifth Avenue makes a holiday’08 deal.

The line at Abercrombie & Fitch on Fifth Ave. PHOTOS BY KYLE ERICKSEN KYLE PHOTOS BY suits with cropped winter white leather Helmut Lang with sales down 25 percent,” said Herman Heinle, presi- Szalay, mall marketing director. “The guesstimate is our shearling jackets.” dent. “We planned 20 percent down, so it was about traffi c was up probably 20 percent Friday and maybe 7 what we expected.” Fur sold well, boosted by a “no sales or 8 percent Saturday,” she said. “There is no question INTERNET tax” promotion. Women’s bridge separates and sports- that Friday was an amazing day.…If people keep shop- ComScore, which tracks online results, reported e-com- wear were also strong, including cashmere sweaters by ping this week I think it will tell a lot more about what’s merce spending for the fi rst 28 days of the holiday season Magaschoni and separates by Elliott Laruen. Designer happening in the industry than what happened this reached $10.41 billion, marking a 4-percent decline versus departments were the weakest area, Heinle said, with weekend. I can tell you the Nasher [Sculpture Center] the corresponding days last year. Black Friday saw $534 luxury customers reining in spending due to a combina- store at NorthPark tripled its sales from last year and million in online spending, up 1 percent. For the combi- tion of stock market losses and guilt over lavish spending, that is a luxury gift, very unique.” nation of Thanksgiving Day and Black Friday, online sales given the current economic situation, he speculated. At Perimeter Mall, a large regional center just north of were up 2 percent relative to last year. Kitson owner Fraser Ross opened his newest store Atlanta, Black Friday traffi c and sales were “equal if not Forrester Research Inc. continues to project about on Black Friday at Caruso’s Americana at Brand. greater than last year, exceeding expectations, given the 12 percent growth for online holiday sales. In October, Ross conceded that the timing of the Glendale open- economy, with parking lots and decks 95 percent full by 1 sales online grew about 10 percent, said Sucharita ing was shaky — with a large store on Melrose Avenue p.m.,” said Dennis Kemp, general manager of the property, Mulpuru, Forrester analyst. However, average order size just around the corner from his well-known Robertson which is owned by General Growth Properties. Cosmetics, was down due to deep discounts. Boulevard location to open next week, too. premium denim, cashmere sweaters, scarves and linge- The BIGresearch poll for NRF found that 84.6 mil- “It’s a bloodbath; the majors are putting specialty re- rie were the best-selling categories, said Kemp. He said lion consumers plan to shop online from home or at work tailers out of business. Women’s clothing simply cannot Macy’s and Nordstrom were “exceedingly strong.” today, up from 72 million in 2007 and 60.7 million in 2006. sell at full price,” Ross said. “My staff knows, when a Kemp said, “I suspect customers should shop earlier “Hopefully this marks the beginning of the real holiday girl 14 to 22 comes in the door, treat her like the Queen than later because of retailers being very selective in season,” Mulpuru said. “There was a lot of negative press of England. They’re spending the money.” the depth of their inventory offerings this season.” in November, but I think a large part of that is people were Bright spots, Ross said, were jewelry and accessories, Taubman’s Beverly Center in Los Angeles reported waiting for the sales and delaying their purchases. There with Nicole Richie’s new line projected to do $250,000 that although sales were less brisk than Friday, stores are always a lot of people who delay their purchases and for the stores by the end of December. surveyed on Saturday were trending anywhere from fl at wait to shop until the last minute, and this year there is Gina Zangrillo, president of Darien Sport Shop in to high-single digit gains. The Shops at Willow Bend in probably more of that than usual. People are being more Darien, Conn., refused to break price. “We’re probably Plano, Texas, did well with skinny jeans, boots, Wii, home judicious about how they’re spending their money. I the only store in America which has taken the posi- products and jewelry, as well as apparel and electronics. think Monday [today] will be good. Hopefully softness in tion not to go on sale,” she said. Instead, the store has — With contributions from Sharon Edelson, Jean Palmieri November will be compensated for in December.” aligned itself with a different charity each weekend and Cate Corcoran, New York; Holly Haber, Dallas; Anne On eBay on Black Friday, the hottest consumer elec- during the holiday season. This past weekend was the Riley-Katz, Los Angeles; Georgia Lee, Atlanta, tronics products were the Garmin Nuvi GPS and iPod Mikey Czech Foundation which raises awareness and and Beth Wilson, Chicago WWD, MONDAY, DECEMBER 1, 2008 11 WWD.COM Tiffany, Dillard’s Trim ’09 Expenditure Plans FASHION SCOOPS MOURET MOVE: Roland Mouret’s collection has a new home. Starting next By Alexandra Steigrad tourists into the U.S., but the strengthening of the March, the designer will show his RM by Roland Mouret line during Paris dollar and increasingly global nature of the eco- Fashion Week, moving from his previous spot during couture week. FROM UPSCALE JEWELER TIFFANY & CO. INC. nomic crisis have slowed that trend. “The collection is now more strongly established in the market; It’s a real to mainstream department store Dillard’s Inc., the Comparable-store sales in the U.S. declined 14 ready-to-wear collection,” Mouret told WWD. drumbeat of the economic slowdown continued to percent in the quarter, below expectations of “only The move comes in tandem with an acceleration in his delivery cycle. The echo through retailing last week. a modest decline,” the company said. The Fifth collection Mouret will present in March will have been sold to buyers in January, Tiffany, confronted with a drop in third-quar- Avenue fl agship, which generated more than 20 and land on the shop fl oor within three months of the show. Meanwhile, his spring ter earnings, lowered full-year earnings estimates percent of U.S. sales for the quarter, posted a 5 per- 2010 collection is slated to arrive in stores two months after it’s been shown. to a range of $2.30 to $2.50 a diluted share, from cent dip in comps. October was a particularly harsh “The real luxury is that people want clothes straight after the show,” said $2.82 to $2.92. The company said it would reduce month for the fl agship as sales declined 17 percent. Mouret. He added that his fall 2009-10 collection would continue to revolve overseas store openings by half next year to eight, Internationally, Tiffany’s sales softened as well, around his concept of the dress, accessorized with jackets. “With what’s most of them in the Asia-Pacifi c region. with Asia-Pacifi c falling 3 percent in constant cur- happening around us, when a lot of women are really frightened to invest in The jeweler plans to open fi ve stores in North rencies. Japan was down 7 percent and the rest of clothes, we have to make the relationship with the customer stronger and America — three in the U.S. — versus six this year. Asia-Pacifi c up 4 percent. keep the signature pieces, with the same hand,” said Mouret. Without elaborating, the New York-based fi rm said Europe’s comps rose 8 percent, down from a 10 That approach seems to be working for the designer — his structured it plans to reduce staff. percent rise in 2007. London posted double-digit Pigalle dress, part of the fall collection, has recently been worn by celebrities Little Rock, Ark.-based Dillard’s, which saw its sales growth. including Jennifer Lopez, Beyoncé and Dita Von Teese. third-quarter loss quintuple, said it would cut capital Dillard’s posted a quarterly loss of $56 million, And while the designer confi rmed that he has a men’s wear line in expenditures more than one-third, to $120 million in or 76 cents a diluted share, compared with a loss development, Mouret said that a launch date isn’t imminent. “We really want 2009 compared with $192 million this year, as a result of $11.3 million, or 15 cents a share, a year ago. to see how the market is doing,” he said. of “dramatically reduced store opening activity.” Stripping out one-time charges of 8 cents a share The retailer opened 10 stores this year. While related to store closings and 4 cents a share for IN THE BAG?: Could Akris, the Swiss maker of luxury clothing, be mulling an construction will begin on three stores next year, hurricane-related expenses, the loss per share eventual foray into accessories? According to sources, the fi rm has been in only one will open before the end of 2009. Dillard’s was 64 cents. On average, analysts polled by Yahoo acquisition talks with Comtesse, a small but elite German handbag maker previously closed 21 underperforming units and re- Finance estimated a loss of 57 cents a share. favored by international royals. vealed plans to reduce salaried staff by 8 percent. Sales in the three months fell 7.7 percent to In the three months ended Oct. 31, Tiffany $1.51 billion from $1.63 billion last year and were GARCIA CHECKS IN: French designer Jacques Garcia has decorated hotels in posted a 56.9 percent drop in net income to $43.8 down 9 percent on a same-store basis . Paris — including fashion favorite Hotel Costes — but he’s really always had a million, or 35 cents a diluted share, 10 cents above “The oppressive economic environment clearly thing for New York City. Now, with Manhattan’s NoMad, Garcia gets to bring his the consensus estimate, from $101.5 million, or 74 weighed heavily on our results during the third signature style to a Gotham hotel for the fi rst time. “New York has always brought cents, last year. The year-ago number included a quarter,” said chief executive officer William me luck,” said Garcia, whose private clients include the Sultan of Brunei. “It all one-time gain of 48 cents a share on the sale-lease- Dillard 2nd. “We continue to take aggressive ac- back of its Tokyo fl agship. Excluding that item and tion to navigate these challenging times.” a 4-cent-a-share charge for a contribution to the Maintaining his “hold” rating on Dillard’s stock, Tiffany & Co. Foundation, the company said profi t Standard & Poor’s equity research analyst Jason increased 13 percent in the latest period. Asaeda wrote, “We continue to project narrower Net sales slid 1.4 percent to $618.2 million, losses next year on more effective inventory and ex- from $627.3 million. Excluding the effects of cur- pense management.” However, he expects the retail- rency fl uctuation, net sales slid 2 percent and er to incur higher markdowns in the fourth quarter comparable-store sales fell 7 percent worldwide. in order to fi nish the year with cleaner inventories. Tiffany has benefi ted from the infl ux of foreign — With contributions from Matthew Lynch

A rendering of Jacques Garcia’s interior design for the new NoMad Hotel. U.K’s Woolworths Files for Administration started in the Eighties with Sotheby’s, Danube was a great success in 1990 and Spice Market brought such enthusiasm in 2000,” he said of his other New York By Nina Jones Christmas, and that the 25,000 staff employed by projects. “In 2010, I have a new dream for the city and this hotel.” The 12-story the companies would all be paid this week. The NoMad Hotel, which will be on Broadway and 28th Street, will have 160 rooms LONDON — In a further indication of the tough retail Icelandic investment company Baugur holds a 12 and 11 suites with loftlike open plans. It is to open in fall 2009. climate in Britain, Woolworths, the 819-door, 99-year- percent stake in Woolworths through the invest- old U.K. retail chain that sells everything from chil- ment vehicle Unity. TOP HAT: “I wasn’t a young starter; I arrived at Saint Martins and I couldn’t sew,” dren’s clothing to household goods, last week filed for “In the last 24 hours we have received expres- milliner Stephen Jones confessed as he scooped up a British Fashion Award last administration, the U.K. equivalent of Chapter 11. sions of interest from a number of parties for week for outstanding achievement in fashion design. “I’d been at a classic boys’ Deloitte said it had been appointed administra- both the retail and wholesale businesses,” said boarding school where we learned to run the Empire and play rugby instead.” tor to Woolworths plc, the company’s retail divi- Dan Butters at Deloitte. “We are working hard to Luella Bartley was named the designer of the year and Burberry’s Christopher Bailey sion, and Entertainment U.K. Ltd., the wholesale ensure that any sale of the business, in whole or was named men’s wear designer of the year at an event attended by the likes of division of Woolworths Group plc, which distrib- part, will preserve jobs.” Claudia Schiffer, Giles Deacon, Rosamund Pike, Alexa Chung and Pixie Geldof. utes entertainment products. Woolworths Group plc’s DVD business, 2 Other winners at the Swarovski-sponsored awards included Woolworths split from its original American par- Entertain, has not been placed in administration Jimmy Choo for designer brand of the year, Matthew Williamson ent company, F.W. Woolworth and Co. Ltd., in 1982. and BBC Worldwide has made a bid to acquire for red-carpet designer of the year and Rupert Sanderson for “Woolworths has suffered a number of cash fl ow that arm of the business. accessory designer of the year. Meanwhile, knitwear designer problems,” said Neville Kahn, reorganization servic- Woolworths was spun off from the fast growing Louise Goldin won the Swarovski Emerging Talent Award for es partner at Deloitte. “Strenuous efforts over recent Kingfi sher group in 2001 and struggled to carve ready-to-wear and footwear designer Nicholas Kirkwood won the weeks to keep these companies going have unfortu- out a niche in the increasingly competitive U.K. Swarovski Emerging Talent Award for accessories. One of the nately failed and the businesses are now looking to retail scene. The chain was the second to go into highlights of the evening was Jourdan Dunn’s giddy acceptance be rescued under the administration process.” administration last Friday; U.K. furniture retailer speech on being named model of the year. In between tears, Deloitte said the stores will remain open past MFI also did so. the model thanked her mother, “but I’m sure she’d rather I thank her with a car or a mansion or something,” she said before dissolving into laughter. Jourdan Dunn Cosmetix West Launches Own Brand INTERIOR DESIGNS: Kris Van Assche might have his own label and be the creative brain behind Dior Homme, but he is also something of an art afi cionado. The COSMETIX WEST INC., A MAN- percent organic is not necessar- The initial product lineup Belgian designer has commissioned an installation by 30-year-old Italian artist ufacturer of beauty products for ily 100 percent effective,” said contains 8-ounce hand lotion Andrea Mastrovito, who is known as Mastro, for Dior’s Rue Royale store, which the likes of Philosophy, Apothia, Chavers, who worked at Giorgio for $24, 8-ounce body lotion for will be unveiled Thursday. Tova and Michael Stars, is step- Beverly Hills and H. Alpert & Co. $24, 16-ounce scent diffuser for ping out from behind the curtain before starting El Segundo, Calif.- $95, 8-ounce hand soap for $20, TAILOR PAID: Economics aside, once you go bespoke, you never go back. That’s what of private label contracts with the based Cosmetix West in 1994. “We 1.7-ounce petite parfum de mai- the Paul Smith bespoke team is hoping as it heads to New York for only the second unveiling this month of its own are giving the best of what science son for $12, and a candle for $42. time. In May, the tailors brought their services to Paul Smith’s store on Greene personal care and home fragrance and organic ingredients have to “We wanted a broad enough Street, marking the fi rst time customers — men or women — could order the brand, Infusion Organique. offer. As the industry develops selection so anybody could fi nd designer’s bespoke suits in the U.S. About two dozen customers availed themselves more affordable organic materials something, but I didn’t want to of the service, with prices starting at around $5,000 a suit. Their devotion may be that work, we will use those, but overwhelm,” said Chavers. tested in the current trading environment, however. Appointments are open today BEAUTY BEAT only if those organic materials live The packaging features mini- through Thursday. “We’re not looking to grow that business by leaps and bounds, up to their synthetic counterpart.” mal to no branding and graphic but we’re looking to maintain it,” said a Paul Smith spokesman. Ron Chavers, founder of Infusion Organique is pre- fl owers that were inspired by Cosmetix West, compares miering with three scents: Chavers’ belief that diffusers are TAILORING TACTICS: Aiming to bring the tailoring tradition to university students, Infusion Organique with a hy- Buddha’s Fig, with organic fi g akin to long-lasting fl owers. “It is Brioni, the Italian luxury men’s wear label, has signed its second consecutive brid car that’s not completely extract, organic lemongrass not so modern that it is going to partnership agreement with London’s Royal College of Art and will sponsor its green but that draws upon the oil and essences of rose gera- scare anybody,” he explained. “I men’s wear fashion design course for three years. Brioni’s master tailor will most advanced available en- nium, wood and amber; Sands didn’t want it to mess with what work with the college in deciding on the year’s curriculum, as well as teaching vironmentally friendly tech- of Morocco, with sandalwood, you have in your house.” students the trade. In order to complete their degree, students will spend a nology. Its formulas combine oakmoss, organic lemongrass oil Chavers expects in its first week of hands-on tailoring at the Brioni Tailoring School in Penne in Abruzzo, naturally derived surfactants, and ylang-ylang; and Indochine, year that Infusion Organique will halfway down Italy’s boot-shaped peninsula. Upon completion of the degree, oils and extracts with synthetic with kumquat, peach, water lily, be carried in roughly 500 doors, three students will be selected by a panel of industry experts and a prize for compounds, such as emulsifi ers, jasmine, muguet, vanilla, organ- and generate revenues of $1 mil- their work will be awarded in Milan during men’s fashion week next June. Last when deemed indispensable. ic grapefruit extract, and orange lion to $1.2 million. year’s laureates displayed their creations in the windows of London’s Harrods, “We say right up front that 100 and ylang-ylang essential oils. — Rachel Brown Takashimaya in Tokyo and Bergdorf Goodman in New York. 12 WWD, MONDAY, DECEMBER 1, 2008 WWD.COM Innerwear Report Amid Turmoil, Trust Factor Prevails By Karyn Monget The home and basic comfortwear WITH ECONOMIC TURBULENCE FAR items are top-selling ideas for Jockey. from over, lingerie executives are bracing for how buying patterns and traditional marketing rules will be affected. For now, executives believe practicality will prevail. The immediate concern of manufactur- ers and retailers is fundamental: getting consumers to spend as job losses, unem- ployment and home foreclosures mount. The response has been to tighten inventory, cut operating costs, create must-have items and focus on value by offering discounts and promotions. Despite huge government bailouts to help banks, consumers and busi- nesses, the forecasts for the holiday season and into next year are negative. The good news is the demand for basic necessities isn’t expected to wane. Top bread-and-butter categories include under- wear, socks, T-shirts and fl eece separates for men, women and children by brands such as Fruit of the Loom, Hanes and Jockey, as well as classic bras and undies by major players like Maidenform, Playtex, Bali and Warner’s. “There is a distinct possibility that peo- ple will be spending more time at home and turn to comfortwear and basics,” said Ed Emma, president and chief executive offi - cer of Jockey International. “This category is currently outperforming other catego- ries like sportswear. Consumers do tend to go back to basics in times like these, but that doesn’t mean they won’t buy some fashion in the men’s and wom- en’s underwear category if the product siderably in the most recent three confi dence again to consumers and investors. In a nut- is right. They may spend a bit more, in months, the categories we compete in shell, from a retail perspective, prices are going to be fact, because it’s not a big-ticket item, [innerwear, basic T-shirts and fl eece] the issue at the low end and at the top end, and only the as opposed to electronics.” are relatively stable,” said Hall. “But re- great and true luxury brands will prosper. Unless you Emma said consumer trust in a brand sults for the more immediate time period are a Wal-Mart or a Louis Vuitton, everyone else should is all-important during tough times. remain the same. I believe that brands are run for cover.” “I think Americans will absolutely look to a major infl uence on consumer purchase in- Marshal Cohen, chief industry analyst for consumer brands they know and trust, and history dem- tent in any economic climate and can play an research fi rm The NPD Group, said commodities have onstrates this,” he said. “When I was a merchandise even greater role during uncertain economic times. a big advantage even in challenging times because they manager at department stores buying men’s basics and We’re seeing evidence of that now. Results from another have replacement and replenishment as the primary Jockey was one of my brands, Jockey always did better recent Hanesbrands survey indicate that what brands a reason for purchases. than most in harder economic times. People buy brands store carries play a big role in deciding where to shop, “While it is true consumers can prolong purchases of they know and trust, brands with demonstrated quality and three-fourths of consumers rated a ‘well-known necessity items, at some point that necessity will become and value. Brands must deliver quality, be transparent brand’ as being an important infl uence on their inner- extremely necessary,” Cohen said. “We feel more vulner- and market themselves in alignment with their brand’s wear purchase decision. When dollars are tight, con- able, less wealthy, and while our natural tendency is not values, focusing on the consumer and telling them your sumers don’t want to make a mistake.” toward frugality, particularly to the degree we should in story is important. Now is not the time to play with con- Hall said many consumers are indicating they plan to proportion to our decreased wealth, this is one of those sumers’ trust.” focus on practical purchases for the holidays and skip times the American consumer has cut back.” Kevin Hall, executive vice president and chief mar- the excessive gift-giving they may have indulged in dur- Mark Sandler, senior vice president of O’Bryan Bros., keting offi cer of Hanesbrands Inc., said, “Consumers are ing previous years. said he believes spending will favor items that are need- clearly looking for quality at a value and are shifting to “Basics like socks, T-shirts and underwear have al- ed versus those that are wanted. mass and off-price channels at the expense of specialty ways been good stocking stuffers, but they’ll probably “Marketing will rely heavily on price promotion and stores. We expect this trend will continue well into 2009. be more important this year,” he said. “We actually see perceived value,” Sandler said. “Even those consumers The online channel continues to grow, despite the tough this refl ected in the stability of core underwear sales who were normally in the luxe market will have feelings economy. According to recent Hanesbrands consumer leading into the holidays.” of guilt if they spend as they did before. There is no evi- data, eight of 10 consumers are not likely to trade down Marc Gobé, president of Emotional Branding, a con- dence that 2009 will bring any change to the current dif- to cheaper goods if it means compromising on quality. If sumer research and trend forecasting fi rm, said, “We fi cult environment. The macroeconomic forces at play savings are necessary, they are more likely to buy less have known our ‘Great Gatsby’ years, and it’s over. will require more than one year to recover. I believe rather than compromise quality.” “There is no way we will know the wealth we have the average American will get better at dealing with ad- Hall said the fi nancial crisis is “causing most people known. It will be at least three years of a slow, uphill verse conditions and to some extent will get used to it. to reexamine their spending and their priorities.” recovery,” Gobé said. “The confi dence and management This may result in the loosening up of purse strings and “While overall apparel volume has softened con- skills of new President-elect Barack Obama, could give a satisfaction of some pent-up shopping demand.”

Frederick’s of Hollywood’s Escapism Softens Blow of Harsh Economy Xtreme Plunge Bra. AFTER THE SEPT. 11 TERRORIST ATTACKS, PRESIDENT with the Great Depression and ‘I’m the next one to be laid off.’ Bush said, “It’s back to business, but it’s not business as usual.” People have got a sense they’re in it for the long haul.” In the current climate, consumers are being traumatized in However, “there still is that appetite for amusement,” Thompson a different way. Instead of a fear of another attack or fl ying, the said. “There is that sense that when you can no longer afford your survival instinct is kicking in over having a job, a home, health cable bill, lingerie provides an alternative to ‘Cinemax After Hours,’” insurance, savings and money to buy groceries. he added. “And if you can’t afford that fancy, romantic vacation, you can go After Sept. 11 there was a trend called cocooning and the focus to Target and buy a thong set and have part of that experience at home.” was on the home, where items such as comfy robes, lounge pieces, Linda LoRe, president and chief executive officer of sleepgowns, pajamas, and bath and body products helped provide Frederick’s of Hollywood, said the hunger for escapism was re- the warm feeling Americans craved. Sexy boudoir fare such as fl ected in Halloween sales. baby dolls, push-up bras and thongs, which offered a sense of fan- “It told me very clearly where the customer’s mind-set wants tasy and escapism during harsh times, also were in demand. to be,” LoRe said. “We had unprecedented increases across the “After 9/11, there was a presidential mandate to go back to our board, not only to goal but during the same week a year ago. It normal consumer habits,” said Robert Thompson, professor of wasn’t just costumes, it was lingerie with which customers could media and pop culture at Syracuse University. “Buying a pair of have their own exciting night at home and do their own kind of shoes or underwear was tantamount to doing a patriotic act. This party. Instead of spending a lot of money on a night on the town, is a whole different situation. Buying and spending will reha- the customer spent a little on a night in.” bilitate the economy, but the fear now is we’re keeping company — K.M. © 2007 Fruit of the Loom, Inc. We’re expanding to fi ll up all kinds of space. Innovative fabrics, styles, and designs in the many Plus, our retail are profi partners ting from increased market basket a rings, Fruit of the Loom intimates andnew sleepwear collections continue to create loyal customers. award-winning customer service. It’s more proof that you really can’t have too much of agoodthing. An ever-growing numberofcollections. Never quiteenoughroom. Dozens ofstyles. ractive margins, and and margins, ractive 14 WWD, MONDAY, DECEMBER 1, 2008 WWD.COM Innerwear Report

A silk chiffon robe, cami and briefs from Lisa’s Folly Luxe. Animal Magnetism Lingerie designers are going wild with zebra, snake and cat prints for day or night. PRICE; FASHION ASSISTANT: WENDY WONG; STYLED BY BOBBI QUEEN WONG; STYLED BY WENDY ASSISTANT: PRICE; FASHION

La Perla’s silk and elastane robe and slip. PHOTOS BY ROBERT MITRA; MODEL: SARAH TYER/RED; HAIR BY DANIELLE IRENE FOR ARTISTSBYTIMOTHYPRIANO.COM; MAKEUP BY MIZU FOR SUSAN MAKEUP BY DANIELLE IRENE FOR ARTISTSBYTIMOTHYPRIANO.COM; TYER/RED; HAIR BY MODEL: SARAH MITRA; ROBERT PHOTOS BY WWD, MONDAY, DECEMBER 1, 2008 15 WWD.COM Accessories Report Watch and Jewelry Firms Take the Online Route

By Sophia Chabbott said there are advantages to selling watches and jewelry online. WATCHMAKERS AND JEWELERS ARE “The benefi ts are instant reach and the ability finding a new avenue to sell their wares to make the brand available to its best customers — and it’s not Madison. wherever they are,” Hader said. “Especially with Even before the fi nancial crisis, fi ne jewelry and watches, where items are lim- brands began to cultivate online ited edition or one of a kind, online is the perfect selling. De Beers, Bulgari and way to fi nd the right buyer for each piece. For Boucheron are just some who have brands that don’t have their own stores, it’s also recently joined the game in selling a channel that allows them to control every as- their gem-laden jewelry and watch- pect of the purchase experience.” es on their respective Web sites. Hader said online selling and brick-and- Last month, Harry Winston, mortar stores are used in different, sometimes known for its sensational diamond interchangeable ways. jewelry, launched an Online Salon “Thinking about online as competition to at harrywinston.com. The site offers brick and mortar is the kiss of death,” she said. a range of jewelry, from $5,300 diamond “Their clientele use both channels when making Loop earrings to the $135,000 diamond a purchase decision. Some people do all of their Sunfl ower necklace. research online and make the purchase in store. Now, watch fi rm Tag Heuer, owned by LVMH Moët Others browse in store to get a feel for merchan- Hennessy Louis Vuitton, has joined the trend with an dise and make a fi nal decision and buy online outside-the-box concept. The company has partnered later. Especially with watches where afi cionados with its retailers, including Barmakian and Tourneau, are collectors, online fuels their thirst for knowl- to sell its watches through their Web sites. Tag Heuer will sell watches through its retailers’ Web sites. edge as often and as deeply as they want it fed.” Fine watches aren’t typically sold through the Web, and most fi ne watches sold online in the U.S. are counterfeit, diverted or gray goods. Watch fi rms gener- ally won’t service a watch from an unauthorized dealer. “It’s unfortunate that there has been a cottage industry of selling through unauthorized dealers,” said Ulrich Wohn, president and chief executive of- fi cer in North America of LVMH Watch & Jewelry. “We as a brand have not been serving our cus- tomers online. There’s a market out there for people who shop online. We’re trying to combine the trust the consumer has with the retailer and the brand.” The company has started an online advertising blitz featur- ing brand ambassadors such as Maria Sharapova and Tiger Woods, driving consumers to Web sites where they can buy Tag Heuer products. The com- pany has created a trademarked hologram identifier to ensure that the site a consumer is buy- ing from is authentic. Everything from the women’s Aquaracer watch in stainless steel at $1,500 to the $4,100 Grand Carrera Automatic Chronometer will be available online. “We’re the fi rst [watch brand] to jump in this pool and we think others will follow,” said Wohn, who anticipates the strat- egy will only bolster consumer confi dence in the retailer and give them more opportunities to shop. “It’s old fashioned to think people only shop one way.” Next-day delivery is an option. So far, the program is only avail- able in the U.S. and Canada. Wohn could not offer sales projections. Suzanne Hader, principal of 400twin luxury brand consulting,

CONFIDENT. MODERN. REAL.

www.hobointernational.com A Tag Heuer watch. 16 WWD, MONDAY, DECEMBER 1, 2008 WWD.COM Legwear Report

WILLIAMS Step It Up From zip-up leather pieces to complicated sheer confections, Mikhael edgy legwear designs Kale’s silk popped up all over the tulle leggings. Riser dress designer market for and Chinese spring. If these styles Laundry shoes. catch on, traditional manufacturers will have plenty of fodder for innovation in Ohne Titel’s nylon tricot, future collections. cotton and Rodarte’s Swarovski cutout crystal leggings. leather Velour blazer, leggings Geren Ford top and Chinese and Max Azria Laundry shoes. shoes. PHOTOS BY TALAYA CENTENO; MODEL: MARLENE/Q; HAIR AND MAKEUP BY DANIELLE CIRILLI AT ARTISTSBYTIMOTHYPRIANO.COM; STYLED BY COURT COURT STYLED BY ARTISTSBYTIMOTHYPRIANO.COM; DANIELLE CIRILLI AT CENTENO; MODEL: MARLENE/Q; HAIR AND MAKEUP BY TALAYA PHOTOS BY WWDTREND

▲VBH

▼ Stuart Weitzman Let It Shine This spring, shimmer and iridescence give bags, shoes and baubles a little kick.

▼ Coach

▼ Burberry Prorsum ▼ Aris Geldis

For more, see WWD.com. PHOTOS BY JOHN AQUINO; STYLED BY SHOSHANNA FISCHHOFF JOHN AQUINO; STYLED BY PHOTOS BY WWD, MONDAY, DECEMBER 1, 2008 17 WWD.COM Financial WEEKLY STOCKS For full daily stock changes, see WWD.com. 52-WEEK AMT 52-WEEK AMT French Connection Sales Rise, High Low Companies P/E Volume Last Change High Low Companies P/E Volume Last Change 84.54 13.66 Abercrombie & Fitch (ANF) 4.1 22416175 19.33 4.69 51.42 13.95 J.C. Penney (JCP) 5.3 19921516 18.99 3.85 28.23 9.04 Acadia (AKR) 11.2 1453209 13.98 3.57 7.70 2.88 Jaclyn (JCLY) - 0 2.88 0.00 3.78 0.47 Aeffe * (AEF:MI) - 2847059 0.68 0.18 1.67 0.24 Joe’s Jeans (JOEZ) 3.1 613010 0.36 0.09 But Firm Lowers Expectations 37.40 12.78 Aéropostale (ARO) 7.8 9682865 15.12 1.13 22.12 2.34 Jones Apparel (JNY) - 12462056 5.13 2.20 29.40 19.32 Alberto Culver (ACV) 9.3 3556973 21.47 0.94 50.58 15.38 Jos. A. Bank (JOSB) 7.2 1808522 19.55 2.24 By Nina Jones 16.80 2.45 American Apparel (APP) 11.1 923426 4.25 1.28 19.74 5.78 Kenneth Cole (KCP) - 402517 8.75 2.40 23.84 6.98 American Eagle (AEO) 6.2 23168819 9.60 2.08 47.80 9.56 Kimco Realty (KIM) 11.7 40127301 14.15 2.87 LONDON — 32.48 3.88 Ann Taylor (ANN) 7.2 11614169 4.49 -0.34 56.00 24.28 Kohl’s (KSS) 10.6 23446183 32.66 6.51 British retailer French Connection saw 5.00 1.42 Ashworth (ASHW) - 0 1.90 0.00 20.76 9.93 K-Swiss (KSWS) 13.3 786452 12.60 1.52 an uptick in its U.K. and European retail sales, but 420.00 112.50 Asos * (ASC:L) 32.1 1071312 276.00 -5.75 18.98 10.81 LaCrosse Footwear (BOOT) 9.6 9030 11.00 -0.02 the company is taking a cautious view of the com- 45.34 17.45 Avon (AVP) 16.5 26544685 21.10 1.45 22.16 6.90 Limited Brands (LTD) 5.4 31614893 9.31 1.66 ing months. 13.83 4.57 Bebe (BEBE) 9.3 2701481 6.18 0.98 25.73 1.46 Liz Claiborne (LIZ) - 13247757 2.85 1.06 In the 16 weeks ending Nov. 25, retail sales in the 56.72 32.32 Beiersdorf * (BEI:HM) 19.7 2631908 43.37 3.38 7.05 0.35 LJ Intl (JADE) 6.4 204948 0.55 0.09 U.K. and Europe increased 3.7 percent compared 13.30 4.80 Benetton Group * (BEN:MI) 7.0 759676 5.80 0.76 99.97 53.32 L’Oréal * (OR:PA) 13.9 8028166 63.66 3.79 6.35 0.50 Birks & Mayors (BMJ) 0.5 3834 0.51 -0.24 50.60 6.96 Lululemon (LULU) 15.7 1413605 9.82 1.55 with the same period last year. The company said 44.29 26.36 BJs (BJ) 16.3 7784974 35.78 3.07 26.66 12.51 Luxottica * (LUX:MI) 15.0 3033766 14.59 1.60 Wednesday it was helped by “strong growth” in its 0.29 0.08 Blue (BLHI) - 415761 0.12 0.00 89.36 38.10 LVMH * (MC:PA) 10.2 10578109 44.58 5.39 French Connection women’s wear and in the Toast 9.50 1.64 Bluefl y (BFLY) - 36140 1.45 -0.25 81.89 8.31 Macerich (MAC) 6.0 22691444 13.46 2.71 mail order brand. On a same-store sales basis, retail 15.06 0.76 Bon-Ton (BONT) - 453598 1.18 0.26 31.55 5.07 Macy’s Inc. (M) 4.0 54100791 7.42 1.69 sales in the region grew 1 percent. 18.59 4.34 Brown Shoe (BWS) 7.9 2791899 5.64 0.87 17.59 6.25 Maidenform (MFB) 7.4 344782 9.26 2.26 44.57 13.57 Buckle (BKE) 8.7 4173333 18.86 2.68 669.00 191.90 Marks & Spencer * (MKS:L) 5.6 56183221 225.75 21.50 But sales in the U.K. and Europe have “become 11.48 4.25 Bulgari * (BUL:MI) 11.2 4567942 4.80 0.20 35.73 8.33 Men’s Wearhouse (MW) 7.8 6876257 10.64 1.87 weaker and considerably more volatile” in recent 686.50 154.75 Burberry * (BRBY:L) 6.2 23367447 205.50 45.50 20.21 6.14 Mothers Work (MWRK) - 21622 8.18 1.43 weeks, the company stated, and it expects its over- 16.87 4.18 Cabela’s (CAB) 4.9 2088955 6.25 1.50 32.93 10.42 Movado (MOV) 6.7 584501 13.50 2.33 all group sales, including North America, for the 14.86 1.53 Cache (CACH) 10.8 452063 2.05 0.10 25.30 10.03 National Retail Prop. (NNN) 8.3 9028334 13.41 1.90 three months to Oct. 30 to be “slightly below the level 54.20 24.16 Carrefour * (CA:PA) 11.1 17288934 29.71 1.21 12.12 0.82 New York & Co. (NWY) 5.7 2491674 1.88 0.99 23.13 11.94 Carter (CRI) 14.3 3703528 18.91 3.66 5.90 0.07 NexCen (NEXC) - 1624169 0.10 0.02 achieved last year.” 6.96 0.35 Casual Male (CMRG) - 4099418 0.64 0.20 70.60 42.68 Nike (NKE) 14.6 16368635 53.25 5.37 French Connection’s retail sales in North 19.38 11.30 Cato (CTR) 14.8 650431 13.96 0.95 2.33 0.03 Nitches (NICH) - 39429 0.49 0.09 America fell 12 percent in dollar terms, and 10 per- 29.23 2.53 CBL (CBL) 7.9 11607627 4.07 0.68 40.59 6.61 Nordstrom (JWN) 4.8 37694435 11.37 3.56 cent on a same-store basis, during the 16-week pe- 9.95 3.43 CCA (CAW) 6.4 84161 3.65 -0.17 9.10 5.68 Orchids Paper (TIS) 13.1 24869 7.44 0.69 riod. The label’s wholesale sales for the U.K. and 2.74 0.18 Charles & Colvard (CTHR) - 153676 0.30 0.00 29.88 5.40 Oxford (OXM) 5.1 1465682 6.00 0.07 Europe were also down during the period, which 20.61 4.21 Charlotte Russe (CHIC) 3.6 1197545 5.00 0.38 16.95 1.01 Pacifi c Sunwear (PSUN) - 11462055 1.51 0.45 7.00 0.57 Charming Shoppes (CHRS) - 4132694 1.50 0.64 7.15 2.42 Parlux Fragrances (PARL) 319.0 260286 3.30 0.59 the company said refl ected the transfer of some its 82.17 57.10 Chattem (CHTT) 21.8 910239 72.57 3.29 34.95 3.25 Penn Real Estate (PEI) - 6876925 4.50 0.43 business, such as department store concessions, 36.97 11.55 Cherokee (CHKE) 9.5 199450 16.09 2.22 29.27 3.40 Perry Ellis (PERY) 4.6 666589 5.42 1.16 from wholesale to retail. 11.68 1.72 Chico’s (CHS) 21.5 21773158 2.55 0.41 47.94 13.04 Phillips-Van Heusen (PVH) 5.9 3266870 17.44 3.04 The company said it expects its wholesale sales 43.40 14.92 Children’s Place (PLCE) - 2999248 23.45 3.86 2.37 0.35 Phoenix Footwear (PXG) 0.6 6500 0.47 0.03 in North America for the second half of the year to 16.68 2.46 Christopher & Banks (CBK) 7.5 1286252 3.37 0.49 82.02 31.22 Polo Ralph Lauren (RL) 9.4 8937440 43.20 7.16 35.61 19.51 Cintas (CTAS) 10.9 6811026 24.02 2.81 141.50 31.06 PPR * (PP:PA) 4.2 3964799 37.35 5.81 be “slightly below” the same period last year, as its 28.12 7.01 Citi Trends (CTRN) 11.4 894013 12.30 4.81 33.67 10.35 PriceSmart (PSMT) 10.4 318853 13.66 1.90 customers delay the delivery of new-season prod- 38.17 13.19 Coach (COH) 8.1 27210742 17.90 3.16 11.14 0.80 Quiksilver (ZQK) - 7773365 1.40 0.51 ucts in the anticipation of extended sales periods 8.51 0.91 Coldwater Creek (CWTR) - 3096483 1.92 0.77 8.84 5.06 R.G. Barry (DFZ) 7.9 30961 5.38 0.32 after Christmas. 81.98 54.36 Colgate Palmolive (CL) 18.2 14879291 65.07 2.42 26.15 3.45 Ramco-Gershenson (RPT) 3.2 815311 4.93 1.21 “As with many retailers, the Christmas trading 21.00 3.85 Collective Brands (PSS) 66.7 8805376 7.65 2.92 73.55 23.36 Regency Centers (REG) 15.3 10468027 35.61 8.58 50.39 26.07 Columbia Sportswear (COLM) 9.2 1646900 31.55 -3.27 7.46 0.95 Retail Ventures (RVI) 0.5 621442 1.24 0.19 period is key to our results for the year and the sig- 75.23 43.88 Costco (COST) 17.8 21095190 51.47 4.76 14.85 0.67 Revlon (REV) 3.6 419519 7.54 0.58 nifi cant downward trend in recent weeks indicates 46.80 0.79 Crocs (CROX) - 7144868 1.27 0.23 83.00 16.88 Richemont * (CFR:VX) 4.7 14556111 21.08 3.24 that we should be cautious in our expectations,” the 0.18 0.03 Cygne Designs (CYDS) - 800 0.03 0.00 41.56 21.23 Ross Stores (ROST) 12.1 12159463 26.50 2.85 company said. 166.50 46.27 Deckers Outdoor (DECK) 11.8 2671113 59.64 5.64 3.72 0.44 Safi lo * (SFL:MI) 6.8 5482186 0.61 0.08 3.50 1.50 Delia’s (DLIA) - 766998 2.25 0.58 22.19 2.67 Saks (SKS) - 12227337 4.31 1.33 10.50 2.09 Delta Apparel (DLA) 23.5 30461 4.71 0.39 116.79 26.80 Sears (SHLD) 11.9 5614096 36.25 5.81 47.68 2.40 Developers Diversifi ed (DDR) 4.6 32347897 4.80 2.05 106.43 33.78 Simon Properties (SPG) 29.4 35935001 47.50 9.12 WEEKLY 23.11 2.50 Dillard’s (DDS) - 4925502 3.66 0.88 25.20 9.25 Skechers (SKX) 6.4 1815749 12.04 2.01 17.93 6.16 Dress Barn (DBRN) 7.1 2591629 7.83 1.11 3.37 0.33 Sport-Haley (SPOR) - 18600 0.40 0.00 CHANGE WWD 23.43 7.30 DSW (DSW) 12.4 1324900 10.05 2.05 6.71 1.03 Stein Mart (SMRT) - 299050 1.56 0.39 33.00 8.50 Duckwall-Alco (DUCK) - 21195 10.16 -0.37 29.00 13.37 Steve Madden (SHOO) 12.7 537724 17.11 2.17 ENDING 8.72 0.61 Eddie Bauer (EBHI) - 691960 0.94 0.26 76.50 23.20 Swatch Group * (UHRN:SW) - 908556 27.00 3.00 ( NOV. 28 ) INDEX 24.44 10.55 Elizabeth Arden (RDEN) 70.4 1007035 14.10 2.24 17.86 7.30 Syms (SYMS) 180.4 66797 9.30 0.79 % 54.75 24.24 Estée Lauder (EL) 11.2 6989627 27.90 2.25 17.97 1.79 Talbots (TLB) - 3810920 2.38 0.40 32.50 14.62 Family Dollar (FDO) 17.4 15712817 27.78 2.40 10.62 1.76 Tandy Brands (TBAC) - 20626 2.25 0.00 Gainers Change COMPOSITE 12.43 1.48 Finish Line (FINL) - 2451950 5.31 1.15 4.22 1.70 Tandy Leather Factory (TLF) 8.6 111536 2.01 0.02 General Growth 236.59 46.25 11.51 Fossil (FOSL) 7.2 2822738 15.20 2.20 46.30 24.62 Tanger Factory Outlet (SKT) 48.9 2750694 36.64 9.41 719.81 4.25 0.16 Fredericks of Hollywood (FOH) - 186862 0.27 0.02 61.00 25.60 Target (TGT) 10.7 55428725 33.76 5.68 Glimcher 113.76 15.91 7.71 Freds (FRED) 50.0 3485432 11.50 2.44 1.30 0.21 Tarrant Apparel (TAGS) - 188436 0.59 0.14 196.75 36.75 French Connection * (FCCN:L) 118.2 183038 37.00 -3.50 92.35 17.47 Taubman (TCO) 37.0 7639337 23.84 3.53 New York & Co. 111.24 22.02 9.41 Gap (GPS) 9.5 37502428 13.02 0.92 5.76 0.40 Tefron (TFR) - 36420 0.50 0.00 Jones Apparel 75.09 49.79 0.24 General Growth (GGP) 5.3 84408114 1.38 0.97 51.12 16.75 Tiffany & Co. (TIF) 7.7 22445195 19.79 0.31 39.38 10.37 Genesco (GCO) 2.7 2768095 13.46 1.70 19.72 7.19 Timberland (TBL) 12.0 1636068 10.15 1.70 Developers Diversified 74.55 23.00 6.27 G-III Apparel (GIII) 9.6 858176 7.94 0.49 37.52 17.80 TJX Cos. (TJX) 10.9 26454417 22.82 2.88 42.74 15.75 Gildan Activewear (GIL) 12.5 4026488 17.04 0.49 64.48 29.12 Tod’s * (TOD:MI) 11.5 204574 31.40 -0.50 19.88 0.75 Glimcher (GRT) - 1432606 2.33 1.24 31.82 9.83 True Religion (TRLG) 7.6 2207068 12.59 1.25 Decliners Change 41.40 18.73 G&K (GKSR) 12.6 603261 23.40 2.12 33.73 2.07 Tween Brands (TWB) 5.4 3474274 3.84 0.83 Hartmarx -42.86 4.39 0.45 Gottschalks (GOTT) - 0 0.59 0.00 50.55 16.05 Under Armour (UA) 24.7 2517586 22.99 2.97 48.49 10.26 Guess (GES) 5.9 6997473 13.23 2.35 5.43 1.80 Unifi (UFI) - 2174818 4.65 0.95 Birks & Mayors -32.00 47.69 16.48 Gymboree (GYMB) 8.2 4627075 25.15 3.36 38.25 20.22 Unilever (UL) - 5467934 22.90 1.55 Zale -24.46 14.75 2.20 Hampshire (HAMP) - 26346 4.20 0.00 38.40 12.33 Urban Outfi tters (URBN) 15.4 19720683 18.17 3.38 37.73 8.54 Hanesbrands (HBI) 7.7 4142866 12.92 2.93 84.60 38.22 VF Corp. (VFC) 8.8 4676120 52.29 9.49 Bluefly -14.70 4.43 0.13 Hartmarx (HMX) - 1140406 0.16 -0.12 28.88 6.39 Volcom (VLCM) 6.5 1768580 10.08 2.84 Columbia Sportswear -9.39 +66.40 433.50 239.50 Hennes & Mauritz * (HMB:ST) 16.6 22532966 298.00 43.50 63.85 43.11 Wal-Mart (WMT) 16.4 89620039 55.88 2.96 131.89 59.42 Hermes * (RMS:PA) 36.4 638602 98.74 4.73 53.89 12.22 Warnaco (WRC) 10.2 4218804 17.90 4.38 8.39 3.90 Hot Topic (HOTT) 20.3 6091331 8.22 2.35 40.00 8.27 Weingarten (WRI) 6.6 12990157 14.26 4.16 * Editor’s note: European stocks are quoted in the currency of 25.13 13.27 IAC Interactive (IACI) - 6358463 14.79 -0.14 5.54 1.81 Wet Seal (WTSLA) 7.0 6639671 2.81 0.61 their principal exchanges. Shares on the London Stock Exchange 23.55 5.11 Iconix (ICON) 6.5 2317956 8.47 2.67 41.99 23.82 Weyco (WEYS) 18.3 211876 33.56 3.58 are quoted in pence, Richemont and The Swatch Group are quot- 53.90 23.29 Inditex * (ITX:MC) 13.0 7761218 26.30 2.61 31.21 16.24 Wolverine (WWW) 10.0 1908023 19.27 1.47 ed in Swiss francs and Hennes & Mauritz is quoted in Swedish 19.96 5.41 Inter Parfums (IPAR) 8.6 581492 7.36 1.71 30.89 5.15 Zale (ZLC) 21.5 8057129 5.93 -1.92 1.96 0.17 IT Holding * (ITH:MI) - 11244560 0.24 0.06 30.50 4.50 Zumiez (ZUMZ) 10.6 1177068 8.64 1.42 kronor. All other European stocks are in euros. 51.96 8.02 J. Crew (JCG) 7.5 12758545 10.14 1.09

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DESIGNER...... $60-75K REPLENISHMENT COORD $70-90K . L.A. Location, Girls 4-6x 7-16 Strong exp in Walmart retail link. Minard SRI Search 800-950-8382 Monitor/adjust/create replenishment [email protected] and forecast system settings using www.srisearch.com CPFR or exp in Inforem. Midtown. DESIGNERS [email protected] 973-564-9236 Showroom /Office for Rent DESIGNER/HEAD MERCHANDISER SALES MANAGER 389 Fifth Ave – 500 sf. / $1500 mon At Ann Taylor, we recognize that $175 to 250k. Current exp in Women’s Retail Store Planner Director $200-225K. Slat walled w/shelves & desks designer collection reqd. Must hang Min 10+ yrs of fashion specialty store Call Peter: 212-683-1900 talented associates are a great with Lauren collection, etc. Midtown. planning exp for multi-store chain reqd. Mid-sized luxury-accessories co. is competitive advantage. We strive [email protected] 973-564-9236 Develop seasonal merch forecast strat- seeking a full time sales manager Cash For Retail Stock & Closeouts. egies, etc. Estab procedures. Growing co. to match individual talents to the [email protected] 973-564-9236 to oversee 5 sales executives for No Lot Too Big or Too Small. EXECUTIVE SALES ASST. international and U.S. accounts. Call CLOTHES-OUT: right role to create a perfect fit. Accessories Company seeks mature, (937) 898-2975 We are currently hiring for Design- organized individual to team directly SALES DIRECTOR Candidate must have 7 years experi- ers for both Ann Taylor Stores w/ upper management, minimum 3 Contemporary women’s wear company ence as a sales manager and years extensive administrative & cus- seeks driven showroom sales. Min 3 yr and LOFT. You may learn more tomer service background. Good ben- experience in specialty & dept. store. Base have an understanding of luxury and apply online at : efits. Email resume w/ salary history to: salary + commission. Send resume & sal- brand. Must be proficient in Micro- [email protected] ary requirement to: soft Office, and QuickBooks. www.anntaylorcareers.com [email protected] GRAPHIC DESIGNER TO $50k Send salary requirements to: CADS for HANDBAGS [email protected] EXCESS INVENTORY BUYER Patterns/Samples/Production Great oppty. to help design handbags Immediate Cash/No Inventory Too Large Any Style. We do Bridal/Evening Chief Financial Officer for this mjr. NYC accessory co. Req: No Hassle/Integrity Driven/Closeouts Needed Gowns custom made & wholesale. prev. 2+ yrs. expr. as a graphic or CAD 901-338-6364 www.fusioninternational.net Call: 212-278-0608/646-441-0950 Wholesale company seeks CFO to direct designer in apparel or accessories & [email protected] SALES/ACCT EXEC ...... $30K + & coordinate all financial functions. This advanced Illust & Photoshop skills. Great Handbags/Shoes fluent Korean individual will be reporting to the learning & growth spot, avail. for travel Valerie Coburn SRI Search 212-465-8300 PATTERNS, SAMPLES, Owner’s & will be a key member of the overseas if nec. Must be fast paced. [email protected] COMMERCIAL mgmt team. E-mail resume: [email protected] www.srisearch.com PRODUCTIONS (Fax) 917-591-2521 (Tel) 914-337-3660 REAL ESTATE All lines, Any styles. Fine Fast Service. The CFO will provide mngmt, leader- Call Sherry 212-719-0622. ship & direction to the accounting team. PATTERNMAKER, HEAD TO $100k. Current exp in junior or women’s sports- Our ideal candidate is a bright, ener- wear. Must have take charge attitude. getic, hands-on leader who can oversee Thorough knowledge of construction PATTERNS, SAMPLES, a broad range of rspbltes including of garments and quality control. PRODUCTIONS general accounting, financial report- [email protected] 973-564-9236 Full service shop to the trade. ing, client profitability & budgeting, PRODUCTION ASSISTANT $30-40K Fine fast work. 212-869-2699. mngmt of all audits.. They will be Min 1yr exp in creating + updating called upon to assist decision-making purchase orders. Check invoices, ship- by senior mgmt on core business strat- ping docks. Strong on Excel. Accounting egy, business development, budgeting background helpful, not nec. Mdtn. & expansion. SALES REP WANTED [email protected] 973-564-9236 Come join the exciting world of handbags! We are a Japanese textile company looking for a Sales Rep who can carry The CFO maintains & monitors all de- PRODUCTION MANAGER / MAXX NEW YORK is celebrating 20 pository accounts, provides accurate PRODUCT DEVEL TO 100K. our woven fabrics. The ideal organiza- years of extraordinary success in the tion must have an ongoing fabric busi- statements for accounts, managing Current exp in intimate apparel or designer handbag business. monthly & annual financials. women’s sleepwear reqd. From incep- ness, that has an office or showroom in tion to completion. Must have sense of We are seeking an experienced, energetic New York City, that could establish Job Requirements urgency. Northern NJ location. individual to join our specialty store our fabrics permanently. Basic Salary •BA in Accounting or similar field [email protected] 973-564-9236 SALES TEAM! Candidate must be + Commission. [email protected] SAMPLE SALE •5-7 Years equivalent experience knowledgeable, motivated, organized UNDERWEAR & UNDERPINNINGS •Knowledge of Licensing and prepared to immediately manage LOUNGEWEAR, SLEEPWEAR AND Production Manager existing accounts & open new accounts. •Retail Background Sewing Plant in SE Georgia-Knowledge Showrooms & Lofts ROBES FOR MEN AND WOMEN •Strong communication, presentation Handbag experience preferred. Also BWAY 7TH AVE SIDE STREETS of stretch fabrics. Fax resume to: must have great communication and December 2, 8A.M. TO 6 P.M. and organizational skills 631-582-9019 Great ’New’ Office Space Avail December 3, 8:30 A.M. TO 4 P.M. •CPA or MBA highly preferred in Ac- computer skills, and retail math ADAMS & CO. 212-679-5500 counting or related field knowledge. 40 EAST 34TH ST. SUITE 207 Production or Product Assistant or Coordinator or Manager Please fax resume to: 212-683-3817 or Please email resumes at Many Jobs-Excellent Salaries email to [email protected] [email protected] Call B. Murphy(212)643-8090; fax 643-8127 attn: Liz Marz

WWDJewelry&WatchReportSECTION II

COOL CONTRASTS FOR HOLIDAY, DESIGNERS FAVOR BOLD, CRISP, WHITE WATCHES THAT PERFECTLY SET OFF THE SEASON’S GRAPHIC BLACK-AND-WHITE JEWELRY.

From top: Faraone Mennella by R.F.M.A.S.’s white jade, diamond and onyx necklace; Concord’s C1 watch; David Yurman’s black zebra agate necklace; Bell & Ross’ ceramic watch; Passman’s black bangle; John Hardy’s white topaz and white sapphire ring; De Beers’ diamond ring. PHOTO BY GEORGE CHINSEE; STYLED BY TALYA COUSINS TALYA GEORGE CHINSEE; STYLED BY PHOTO BY 2 WWD, MONDAY, DECEMBER 1, 2008

SECTION II WWD.COM

JEWELRY & WATCH REPORT

▼ An Irene Neuwirth necklace.

High-Flying Jewelers Deal With New Reality

By Sophia Chabbott it is simply this: In good times and bad, people seek beauty and joy, and they still celebrate important occasions.” PUSH HAS COME TO SHOVE. Several brands have lessened or diminished their advertis- After years of booming sales, fi erce expansion and blow- ing budgets, but many others feel it’s still important to be out advertising campaigns, the fi scal crisis has caused fi ne out there and be counted. So brands such as Graff, Van jewelry brands to rethink their strategies for 2009. While Cleef & Arpels, David Yurman and John Hardy are em- many brands are sticking with their luxury ethos and stay- ploying marketing and sales initiatives to bolster brand ing upmarket, others are keeping their options open with awareness and strengthen customer relations. Graff will silver lines and other more affordable alternatives. continue to host its intimate client events, and Yurman is Despite the fi nancial turmoil, companies remain some- reaching out to existing clients to sample the brand’s new what buoyant about next year. fragrance, as well as host trunk shows. “Anniversaries and big celebrations remain,” said “We’ve adapted our business model to really handle the Frédéric de Narp, president and chief executive offi cer situation as it is today,” said Paul Blum, Yurman’s ceo. “We of Cartier North America. “The environment isn’t positive are going to maintain our position in the luxury category.” and people need romance.” An Ella Gafter brooch. Yurman will continue to develop its international business At the fi rm’s annual holiday luncheon last month, Tiffany & Co. and expand its diamond collection, and next fall the brand will chairman and ceo Michael Kowalski said, “Clearly, consumers have open a new fl agship on Madison Avenue, which is being called “the been shaken by recent events. They are looking now for institutions they town house” inside the company. can trust and count on. We believe Tiffany is one. Van Cleef & Arpels has an aggressive retail expansion in line for 2009. There “For over 170 years we have weathered economic dislocation, civil wars and are plans to open fi ve stores in North America in the next 15 to 18 months, con- world wars, periods of irrational exuberance, periods of excessive pessimism and tinuing with the rate of growth in recent years for the brand. The fi rm is also of debilitating fear. But through it all we have continued to produce exquisite bolstering public relations efforts to gain market share. things valued for generations….So if there is a convenient truth for Tiffany today Continued on page 4 D.YURMAN 2008 ©

NEW YORK BEVERLY HILLS LAS VEGAS BAL HARBOUR WESTCHESTER DALLAS CHICAGO AUSTIN ATLANTA HOUSTON KING OF PRUSSIA ORLANDO MANHASSET TYSONS GALLERIA SOUTH COAST PLAZA BOSTON DAVIDYURMAN.COM 4 WWD, MONDAY, DECEMBER 1, 2008

SECTION II WWD.COM

JEWELRY & WATCH REPORT

▼ A Marco Bicego necklace. Jewelers’ New Reality Continued from page 2 “Given the expense, [advertising and marketing] is something that we’re going to be more prudent about,” said Emmanuel Perrin, president and ceo of Van Cleef & Arpels North America. “We’ll do selected events.” De Beers, the diamond jewelry fi rm, has no store openings planned for next year, as it takes a breather from a busy 2008. “In 2008, we doubled the number of De Beers stores world- wide from 25 to 50, and in the U.S. from fi ve to 11,” said Hamida Belkadi, chief operating offi cer of De Beers U.S. “In 2009, we do not plan on opening any additional stores and will focus on solidifying the existing 11 stores in each local market.” Recent entries into the silver category, such as Leslie Green, Ippolita and Stephen Webster, are performing well. Retailers credit their success to the rich look and a more ac- cessible price point compared with gold lines. Slane and Slane and John Hardy, two brands with roots in silver, are continuing to do trunk shows to entice customers with new merchandise and to connect them to the brand. “It is very important to us to speak to our strategy,” said John Hardy ceo Damien Dernoncourt. “We don’t want to change our focus all the time because things are changing.” Hardy is still in a growth mode. The fi rm, with its core business in North America, opened wholesale accounts in Russia and at Le Bon Marché in Paris this fall. It will continue to grow into those markets, as well as the Middle East. Consumers have been shaken by recent events. “They are looking now for institutions they can trust and count on. ” — Mike Kowalski, Tiffany & Co. ▼ David “Sales for the last three months were not what we were planning Yurman’s them to be a year ago, but we are still growing,” added Dernoncourt, who rings. added that the sweet spot is $850. Silver is a growing category and will continue to be strong next year. Marco Bicego, the Italian fi rm that has an average price point of $2,000, reported increases for 2008 so far and will focus on ex- isting retail accounts with Saks Fifth Avenue, Neiman Marcus, Bloomingdale’s and Bailey Banks & Biddle. Marco Bicego is sold in a network of 450 doors and the U.S. is the brand’s largest mar- ket, though it is increasing its business with accounts in Russia and Dubai, as well as locations across Europe. “I have personal appearances to get consumer feedback,” said designer Marco Bicego. “I’m planning conservatively, but I’m still positive.” Bicego has begun to dabble in one-of-a-kind high jewelry pieces with success. Last month, the company sold a pair of ear- rings for $110,000. Several smaller jewelers are thriving. Last month, Sharon Khazzam launched the Sharon Khazzam Rare Collection at Barneys New York. The line of extraordinary diamond pieces in- cludes stones such as a 72-carat yellow diamond briolette. Khazzam ▼ Van Cleef said there is a lot of interest and that sales are continuing. & Arpels’ McTeigue & McClelland, a fi ne jewelry fi rm based in Great necklace. Barrington, Mass., opened a new private salon to sell its limited dia- mond and gemstone jewelry. Los Angeles-based designer Irene Neuwirth said there is a de- mand for high-ticket items above $40,000, and Ella Gafter continues to see demand for its rarefi ed jewelry with South Sea pearls, dia- monds and rubies. Prince Dimitri, a descendant of Catherine de Medici and Mary, Queen of Scots, who started a jewelry line in 1990, has moved on to designing only

one-off pieces of jewelry and art. His ▼ pieces range from $27,000 to $2.2 mil- A Prince lion. One standout is a topiary modeled Dimitri after the ones at L’Orangerie de Versailles, ring. which include three whopping cabochon em- eralds amounting to 89 carats. “I have some American and some Russian [clients],” said Prince Dimitri. “It’s for people who have seen it all…. It took a village to make [it all].” Lee Siegelson, owner of Siegelson, which specializes in rare antique jewelry, said people continue to look for beautiful pieces of jewelry. “We take a long-term perspective on the things that we’re buying,” said Siegelson. ▼ “Our clients watch CNBC and are concerned with different factors economically, but A vintage we’re selling the same type of jewelry we’ve sold before. It’s slowed a bit, but overall if brooch from you’re worried about your livelihood and existence, you’re not necessarily going to go out Siegelson. and buy a piece of jewelry.” WARNING NOTICE DO NOT BUY ANY OMEGA PRODUCT ON THE INTERNET.

OMEGA BRANDED WATCHES SOLD ON THE INTERNET ARE OF UNCERTAIN ORIGIN, MAY BE www.omegawatches.com COUNTERFEIT, DAMAGED, ALTERED OR PREVIOUSLY WORN AND ARE NOT COVERED BY OUR MANUFACTURER’S GUARANTEE. OUR AUTHORIZED OMEGA DEALERS ARE TRAINED PROFESSIONALS. PURCHASE FROM AN AUTHORIZED OMEGA DEALER IS YOUR GUARANTEE OF THE ORIGIN, AUTHENTICITY, QUALITY AND PERFECT WORKING ORDER OF YOUR WATCH AND IS ACCOMPANIED BY OUR INTERNATIONAL GUARANTEE. 6 WWD, MONDAY, DECEMBER 1, 2008

SECTION II WWD.COM

JEWELRY & WATCH REPORT Luxe Brands Count on Collectors

By Robert Murphy PARIS — As economies nosedive and stock markets crumble, major watch brands are hoping their most expensive col- lectable pieces will help cushion the financial blow. Collectors are Executives are counting on the top end to drive business, “ as the truly rich prove less affected by recession than middle- certainly scrutinizing class buyers. The same is not expected for the $3,000 to $5,000 segment, which executives expect to suffer the most. Already their buying….Market signs of that segment’s ill health have started to accumulate. LVMH Moët Hennessy Louis Vuitton said weak sales of fl uctuations less affect Tag Heuer’s lower-end watches were responsible for a 2 percent like-for-like decline of timepiece sales in the third individuals who can quarter. Hermès said its third-quarter watch sales declined 13 percent, which analysts said didn’t bode well for the rest afford a higher-level of the Swiss industry. timepiece. “The above-$25,000 segment isn’t totally immune to what’s going on,” said Larry Boland, president of Piaget ” — Larry Pettinelli, North America. “But it is much less affected. The upper end of the market is the most resilient in recessionary times.” Patek Philippe USA Larry Pettinelli, president of Patek Philippe USA, said, “Collectors are certainly scrutinizing their buying. However collectors continue to pursue and are willing to remain on waiting lists for complicated timepieces. Market fl uctuations less affect individuals who can afford a higher- level timepiece.” Thierry Oulevay, president of Jean Dunand, which cre- ates one-of-a-kind watches starting at $400,000, said, “Like the art market at the top end, the business for exceptional watches is still strong, despite a real slowdown. Watch col- lectors are simply becoming more cautious, more patient, before investing in a timepiece of this nature.” With the rise of the economy, the number of small niche brands catering to collectors proliferated. The likes of Richard Mille, F.P. Journe and Greubel Forsey profi ted from demand from the newly rich around the world. Yet these brands, because of their small production, are hardly repre- sentative of the health of the market as a whole. Mille and Journe, two of the best-known names among collectors, produce only 1,500 pieces a year. Waiting lists for their products are as long as fi ve years. Greubel Forsey, an even smaller player, produces a mere 80 pieces a year. The ultralimited nature of the most expensive Swiss watches explains why executives, for the moment, are rela- tively serene in the face of the fi nancial storm. Many houses A tourbillon by Jean Dunand. continue to struggle to fi ll orders placed a couple of years ago and it takes years to even develop a new movement. “When we launch a new movement it requires fi ve to six years of investment,” said Angelo Bonati, chief executive offi cer of Panerai. “The of us who have been in the industry for such a long time, we didn’t expect the market was running faster than the industry in the last fi ve years. Swiss watch boom to last forever. What’s going on today may give us some breathing room to exports were growing at double digits. The industry was not able to keep up.” catch up.” “We’re still behind in production,” said Boland, who noted that several of the Even if watch collectors are still spending, executives have noticed some slow- watches Piaget introduced earlier this year have yet been delivered. “For those down, especially in the U.S. and Europe. They expect collectors to become more demanding in their buying patterns. Some believe styles will become less showy, which would represent a departure from the blinged-out, oversize watches that A. Lange ▲ were hot the last couple of years. & Sohne is “The economic downturn and subsequent cleansing of the market is eliminat- coveted by ing the demand for ‘trend’ pieces,” said Pettinelli of Patek. “We fi nd that inter- collectors. est is returning to classic styles. Buyers are beginning to think long term, asking themselves: ‘Is this piece going to be relevant in 20 years?’” Marcia Mazzocchi, president for the U.S. at A. Lange & Sohne, said, “There is an ever-increasing demand for challenging complications featuring truly innova- tive technical solutions. Collectors are looking for exclusivity, timepieces that are limited by defi nition or production capacity.” Retailers have also noticed demand for rarity. Andrew J. Block, executive vice president of U.S. jeweler Tourneau, said the chain has noticed a “dramatic up- tick” in vintage watch sales. “My feeling is that many consumers are picking up on the watch heritage fac- tor as an investment,” said Block. “We’re not just selling to collectors. All types of consumers have picked up on the value proposition, even though some units are selling for more than new. We’ve also sold some dramatic pieces to collectors that went well above the original selling price.” Speculation has yet to cool entirely among the most covetable limited editions. Panerai’s PAM 203, a watch released in a run of 150 that sold for 17,000 euros orig- inally, today sells for as much as $100,000, or 79,492 euros at current exchange, only a couple of years after its launch. Executives believe that as money pools dry up, however, the speculation game will cool. “It’s the real collectors that want to keep the pieces that will be left,” said Bonati. “Speculators won’t fi nd clients [to turn the watches].” The crisis is even being felt at auction. “The market seems to have stopped growing but defi nitely not weakened for the most appreciated brands: Patek Philippe, Rolex, Breguet, Omega and Vacheron ▲ A rare Patek Philippe perpetual calendar with moon phases and a chronograph, register and Constantin,” said Osvaldo Patrizzi, who runs the Antiquorum auction business in tachometer from the Forties. Only 281 examples of this watch were made between 1941 and 1958. Geneva that specializes in rare watches. “Collectors are looking for high quality It was offered for auction at Antiquorum with a preauction estimate of $180,000 to $360,000. and condition. They are paying greater attention to quality and service.”

8 WWD, MONDAY, DECEMBER 1, 2008

SECTION II

JEWELRY & WATCH REPORT

Clockwise from top: Lydia Courteille’s coral fl ower ring; Russell Trusso’s enamel fl ower brooch; David Webb’s tree-bark clutch; Anna Hu’s diamond snake ring; Gioia’s opal ring; Nadine Krakov’s gold lizard bracelet; two pairs of Simon Alcantara’s tigereye hoops; Sevan’s diamond hawk ring. WWD, MONDAY, DECEMBER 1, 2008 9

WWD.COM

WILD THINGS LIZARDS AND SPIDERS AND DRAGONFLIES, OH MY! JEWELERS ARE TAKING INSPIRATION FROM TROPICAL RAIN FORESTS AND ENCHANTED GARDENS, CREATING WHIMSICAL CREATURES AND EXOTIC FLORA. — TALYA COUSINS

Clockwise from top: Dean Harris Druzy’s agate bangle; Maurice’s pink sapphire dragonfl y brooch; Kristen Farrell’s gold bangle; M.C.L.’s enamel ring; Kara Ross’ ebony ring; Jennifer Fisher’s gold spider ring; Buccellati’s diamond butterfl y brooch; Gabriella Kiss’ bronze bug brooch. PHOTOS BY GEORGE CHINSEE PHOTOS BY 10 WWD, MONDAY, DECEMBER 1, 2008

SECTION II

JEWELRY & WATCH REPORT Forward Thinking Taking inspiration from physics to architecture, these new watch and jewelry brands are making their mark on the industry.

JEROME DEWITT Three years after creating his brand, Jerome DeWitt continues to build his fi rm with quality and exclusivity as his guidelines. A descendent of Napoleon, DeWitt makes watches that are engineering marvels, giving a modern twist to the Swiss tradition. He has recently focused more on watches geared to women, including pieces with diamond bezels. “Luxury should be more than words,” said DeWitt. “It should be real. We want to be a product linked to quality.” DeWitt produces about 1,000 pieces a year with A Badollet watch. prices starting at 28,000 Swiss francs, or $23,000 at current exchange. Though he’s only referenced his Napoleonic pedigree obliquely for the moment, De BADOLLET Witt is thinking how to do so in the future. When Badollet, the watchmaker founded “We won’t do a watch celebrating a battle,” he says. in 1655, closed its doors in 1924, it was the “But I’m sure there’s something Napoleonic that we end of one of Switzerland’s most storied can do.” manufacturers. But in an era of Lazarus luxury, — Robert Murphy it was only a matter of time before a savvy entrepreneur resurrected the name. It was revived last year by Robert Pferdmenges, a German investor who is a watch collector. Now, the company, which manufactures

A women’s ▼ 50 to 80 pieces a year, wants to beef up its style from presence in America. With watches that start DeWitt. at 150,000 euros, or $189,000, with complicated movements like tourbillons and minute repeaters, the key to the future is exclusivity, MATTIA CIELO according to chief executive offi cer Aldo It wasn’t a shot in the dark when fi nance guy Magada. One of Badollet’s marketing ploys is its Mattia Cielo ventured into jewelry to start his ability to personalize watches. namesake company. Gems run in the blood of “We can customize everything,” said Magada. this 35-year-old Italian — his father, Sergio, “From the color of the face to the material of the founded Cielo Venezia 1270, a leading jewelry watch. No two watches are the same.” company known for its Miluna, Nimei, Arkano Magada said the fi rm’s objective was to sell and Kiara brands. 150 to 200 watches a year. To design his baubles, Cielo wanted something “That would be extraordinary,” he said. completely novel and revolutionary. So he tapped — R.M. Massimiliano Boni, who has a background in industrial design. “We want to rewrite the rules of jewelry by bringing back to life ancient manufacturing techniques melded with modern Mattia Cielo Gold and technology,” said Cielo. diamond ring. gemstone His industrial design-inspired pieces liberally mix gold, earrings diamonds and stones of all types to create pieces that sparkle from with light and movement. From afar, a dome-shaped diamond Anahita. ring looks smooth, but close up 220 diamonds (18 carats) can be seen resting atop gold springs that add explosive movement. The ANAHITA line is sold in select boutiques, such as Bergdorf Goodman in For Ana Guity New York, in addition to stores in locales such as Dubai, Hong Stein, jewelry Kong and Germany. Prices range from $6,000 to $100,000. making is similar — Alessandra Turra to constructing buildings — but the scale is a tad different. CAROLYN RODNEY The designer and Carolyn Rodney has always been the founder of Anahita artistic type. jewelry incorporates For 15 years, she split her time her background between New York and Los Angeles as a residential as a sculptor, painter and set designer. architect into gold But it was on a life-changing trip to and gemstone drop India that she realized her true calling earrings with curving lied in another art form — jewelry. volutes echoing a A gem- “I had always had a huge fascination building’s cornice, studded with precious stones and seeing and pendant earrings cuff from traditional Indian jewelry inspired me to with mint tourmalines, Carolyn start making my own pieces,” said Rodney. sapphires and Rodney. Now the British designer lives between mandarin garnet that New York, London and Jaipur, India, where have a skylight affect. she designs and manufactures her signature “I’m an architect by peacock bangles, gold earrings and Eastern- trade, so I was always interested in design,” says the 39-year-old Tehran, inspired necklaces ensconced in rubies, Iran, native who grew up across Germany, England and the U.S., and diamonds and sapphires. Most of Rodney’s now resides in Manhattan. “I love sculpture and I wanted a line that has pieces retail from $2,000 up to $45,000 and are sculpture combined with movement for a sensual feel.” available on a private basis in London, as well as Anahita is sold privately through the designer who can be contacted at select Neiman Marcus stores in the U.S. While she through her Web site, anahitajewelry.com. still considers herself a novice of sorts, Rodney said this Stein, who counts artist Dale Chihuly as a key inspiration for her endeavor was simply “meant to be.” jewels, uses color in novel way. She pairs unlikely stones such as a blue- “I could have never foreseen this happening, I never even made jewelry gray moonstone ring set with rubies or a show-stopping necklace made before,” Rodney said. “But I put a pen to paper and it manifested. Everything of white gold with yellow beryl, pink tourmaline and diamonds. Prices happened by magic.” range from $2,000 to $63,000 for the necklace. — Caroline Tell — Sophia Chabbott WWD, MONDAY, DECEMBER 1, 2008 11

WWD.COM

From classics to cult favorites, retailers across the Retro Active globe divulge hot items for holiday. — WWD Staff

MORGAN’S JEWELERS, TWO STORES IN ROCCA 1794, MILAN PALOS VERDES AND TORRANCE, CALIF. Renato Scloza, commercial manager at Rocca 1794 — “The usage of precious gemstones the historic jewelry boutique that carries brands such that have been blended with white as Damiani, Bulgari, Cartier, Gucci, Hermès, Salvini gold and yellow gold in necklaces and Van Cleef & Arpels — predicts classics will be in and bracelets and earrings is demand this holiday. popular,” said Dru Brammer, “The return to more classic styles is due to the general manager. “Marco Bicego particular economic period and to the fact that women is one of the key designers in that want certainty and need to feel reassured,” he said. area, specifi cally with multistrand “There will also be women who will want to play with necklaces containing different jewelry and who will be oriented more toward quirky color gemstones that are faceted stones and colored diamonds.” in briolettes.” Scoza foresees a continuing increase in bracelet sales, ▲ A Damiani He also said elegant dangle as well as more awareness in brands such as Damiani and necklace. earrings of multiple lengths with Salvini for more fashion-forward pieces. diamonds by the likes of Chopard, Leslie Greene and Roberto Coin are popular.

▲ Roberto Coin earrings.

STANLEY KORSHAK, DALLAS “For me, the most ostentatious things are selling — and the cheapest,” said buyer Melissa Geiser. “A $40,000 Sevan ring was one of the fi rst things to sell in October.” Other hot ticket items include minimalist matte sterling or mother-of-pearl “chip” earrings by Ted Muehling that sell from $120 to $1,000; gold and diamond earrings from Dana Kellin that retail from $400 to $4,000, and big wood, Lucite and silver cuffs by Patricia von Musulin that average at $2,000. On the pricier side are hand-painted rings from Sevan for $7,000, oxidized “gilver” pieces by Yossi Harari at $2,500 and black diamond butterfl y jewelry by Michael Tracy at $40,000.

▲ A Sevan ring.

NEIMAN MARCUS MIKIMOTO, TOKYO Lisa Kazor, the luxury retailer’s senior Celebrating the vice president and general merchandise 150th anniversary of manager, cited fi ne watches as a key the birth of founder category. Styles include Chopard’s limited Kokichi Mikimoto, the edition Happy Sport chronograph with rose pearl-oriented jeweler

▲ A top seller gold, white ceramic and diamonds on a introduced a wide at Mikimoto white rubber strap, which sells for $25,820; range of products for in Japan. Cartier’s 18-karat rose gold and diamond holiday. Among them, a Santos 100 watch on a white rubber strap at botanical motif from the $30,350, and Harry Winston’s rose gold and fi ne jeweler’s archive. diamond Ocean Lady Biretro watch with a “These days, people buy white alligator strap at $37,900. Christmas presents right “Our customers are responding to before they need them, classic, timeless watches with a fashion but in Japan, this shopping edge, like the Chanel J12 and the Cartier season lasts long, to Ballon Bleu,” she said. January,” said a spokeswoman. “Recently, it is not rare to see women

▲ A Cartier in their 30s and 40s buying jewelry watch. for themselves.”

BERGDORF GOODMAN, NEW YORK Jodi Kaplan, vice president and divisional merchandise manager of fi ne and fashion jewelry at Bergdorf ’s called out Sydney TINY JEWEL BOX, WASHINGTON Evan’s gold necklace with a Jim Rosenheim, chief executive diamond Peace Sign charm at offi cer of Tiny Jewel Box, said $900, Lorraine Schwartz’s pearls, gold and diamond jewelry Rock Crystal collection

▲ Verdura’s in the $2,000 to $10,000 range are starting at $26,800, Joan Curb-Link what’s in demand. Hornig for UNICEF’s bracelet “When things are tough, white gold snowfl ake and watch. people get more conservative,” earrings with white topaz he said. “They get more basic drop which is exclusive and less esoteric.” to the retailer and sells for $2,225 and Verdura’s classic yellow gold Curb- Link bracelet at $11,950. “[It’s] a perennial favorite

▲ Classic diamond and a timeless, classic styles are selling gift,” said Kaplan. at Tiny Jewel Box. 12 WWD, MONDAY, DECEMBER 1, 2008

SECTION II WWD.COM

JEWERY & WATCH REPORT No Gem for Jewelers This Season

By Alexandra Steigrad dip in comparable-store sales in fi scal 2008, the results talization of the company. were offset by a 6 percent jump in comps during the “We view this transaction as detrimental to the JEWELERS ARE LIKELY TO GET A LUMP OF COAL second half of the year. The comp increase resulted note holders, who will be receiving less value for for Christmas as consumers continue to pull back on from Zales’ aggressive clearance program during the their holdings, and as coercive, since a viable alter- luxury purchases. third quarter, vice president and treasurer David native for Finlay is a fi ling for bankruptcy protec- In the face of rising unemployment, unstable fi - Sternblitz said. Now the company will have a “cleaner, tion,” said S&P credit analyst David Kuntz. nancial and housing markets, high food prices and a newer,” inventory heading into Christmas, he said. U.S.-based jewelers are not the only ones losing their credit market that has a vise grip on consumers, re- Still, its fi rst-quarter net loss expanded to $45.3 luster, although Montreal-based Birks & Mayors Inc. tailers hoping to sell pricey baubles this holiday will million, or $1.43 a diluted share, 50 percent higher trimmed its second-quarter net loss to $2.1 million, or have their work cut out for them. than the 95 cent loss forecast by analysts. Sales fell 18 cents a share, from a loss of $3.5 million, or 31 cents “This is probably one of the most challenging holiday 3.5 percent, to $364.1 million, and dropped 3.7 per- a share, for the year-ago period. Net sales for the three seasons that we’ve seen for retailers catering to all in- cent on a same-store basis. Its 2008 profi ts sunk 81.8 months ended Sept. 27 edged up 2.2 percent to $61.2 mil- come levels and all pricing levels,” said Telsey Advisory percent to $10.8 million, or 25 cents a diluted share. lion. Tom Andruskevich, president and CEO, said while Group chief research offi cer Dana Telsey, who noted Earnings included $7.1 million from discontinued op- he believes the retailer is “faring better than some,” it is that while the economic downturn is affecting high-end erations in the just-concluded year, and $11.1 million not immune to the fi nancial crisis. jewelers, moderately priced and independent jewelers in 2007. Sales receded 0.7 percent to $2.14 billion. Even though its global operations helped boost are being “hit hardest” by tightening consumer credit. In February, Finlay Enterprises Inc., which leases Tiffany & Co.’s second-quarter profi ts 99.6 percent to The “aspirational” consumer, who histori- space in department stores, said 94 of its 316 Macy’s $80.8 million, the upscale jeweler saw signs of a spend- cally has depended on credit to buy jewelry in the Inc. locations would be closed, and all 47 of its Lord ing slowdown in August. With fl agging sales in the U.S. $5,000-to-$15,000 category, “can’t take it out,” — same-store sales were down 4 percent — and she said, adding that sluggish traffi c in malls is currency translation that has deteriorated dras- causing independent jewelers to go out of busi- tically since the summer, “it’s hard to believe ness or fi le for bankruptcy. Tiffany won’t be impacted internationally,” said Privately held jewelers hold nearly 65 JMP’s Koerber, who noted that Tiffany is plan- percent market share of the business, Telsey ning on doubling its store base in Europe to noted, and when they liquidate, they fl ood the about 40 units. market with excess inventory, not only causing With all of its store expansion plans, “there’s the jewelry market to contract, but also forc- not a lot of cost cutting they can do,” she said. ing midtier jewelers to compete with heavily “But Tiffany always comes out of a downturn discounted merchandise. with more market share. People go there to Through the third quarter of this year, “more shop for that little blue box.” than 3 percent of the capacity of the jewelry Saddled with currency translation and credit industry has been removed through store clo- woes, Signet Jewelers Ltd. is also “taking a hit,” sures, consolidations and bankruptcies,” said said Telsey Advisory Group luxury retail analyst Diane Irvine, president and chief executive of- Chia Kuo, who explained that bad debt from its fi cer of Internet jeweler Blue Nile Inc., adding in-house credit facility is piling up as consum- that “there is much more shakeout to come.” ers default on their payments or take longer to For the third quarter ended Sept. 28, the pay. Signet said 52.6 percent of its U.S. sales this Seattle-based company saw its net income year came from credit, up from 51.7 percent last drop 21.4 percent to $2.3 million, or 15 cents a year. Bad debt charge, at 6.5 percent of credit diluted share, from year-ago levels, while net Zales will have a “cleaner, newer,” sales, was at the “high end of the tight range of sales shrank 2.9 percent to $65.4 million. U.S. inventoryinventory headingheading intointo Christmas.Christmas. the last 10 years, refl ecting deterioration of the sales declined 7 percent for the quarter, while U.S. economy,” the company said. international sales, which account for about 10 per- & Taylor shops would be shuttered. According to In the third quarter ended Nov. 1, Signet regis- cent of business, grew 53 percent, which is “strong Finlay, the Macy’s locations generated about $120 tered a net loss of $15.1 million, or 18 cents a diluted relative growth,” according to Irvine, but still down million in revenue, while the L&T stores brought in share, versus year-ago net income $2.5 million, or 3 signifi cantly from the company’s 179 percent jump in roughly $44 million. cents. Revenues dipped 7.3 percent, to $629.4 million, international sales last quarter. But store closures are only one element of Finlay’s and fell 4.3 percent excluding currency fl uctuation. Impacted by the “credit freeze,” Blue Nile’s engage- troubles, noted Moody’s Investors Service senior “The U.S. and the U.K. are in similar sorts of ment business is softening, as consumers are trading credit analyst Maggie Taylor. states,” said Piper Jaffray retail analyst Mike Dennis, down from wedding rings to eternity bands or, in some “Finlay has so much debt that they don’t have any fl ex- who cited parallels in rising unemployment and tight- cases, postponing their engagements altogether, JMP ibility,” she said, pointing to obligations derived from the ening housing and credit markets. “It’s going to be Securities retail analyst Kristine Koerber said. company’s acquisitions of Congress, Carlyle, and Bailey tough, but Signet will be one of the survivors.” Zale Corp. is a testament to this, she said, pointing Banks & Biddle. As of Aug. 2, Finlay’s total liabilities As for the jewelry market, investors should take to the company’s clearing of inventory after the sale were $634.4 million, $200 million of it in long-term debt. into consideration the assets of jewelers, which in- of brand Bailey Banks & Biddle last year, as well as On Nov. 17, Finlay was put on credit watch by clude valuable inventory and property, he said. several recent cost-cutting initiatives. Standard & Poor’s and was downgraded to “CC” from “The jewelry business looks to be fundamentally In order to save more than $65 million a year, Zale “CCC,” meaning that some kind of default seems quite a good value if you think the U.S. and the U.K. revealed plans earlier this year to cut more than 200 “probable,” according to S&P. The downgrade came customer is going to wake up and start spending in jobs and close 105 stores. Even though Zale had a 0.7 after the jeweler held discussions related to a recapi- two years,” Dennis added.

competition in the upcoming holiday season Credit Crunch Causing Consolidation as they are forced to contend with value inventory from liquidations. By Matthew Lynch jewelry liquidation sale began at Whitehall “The consumer that does have some Jewellers Inc., which, four months earlier, expendable income, they’re still looking for the IN WHAT HAS BEEN A PAINFUL YEAR had acquired bankrupt chain Friedman’s best deal possible,” said Fries at Silverman. for jewelers, there probably aren’t many Inc. That acquisition also included certain With so much riding on the holiday observers with a fi nger closer to the pulse of assets of another retailer, Crescent Jewelers. season and more inventory on the market, the market than the fi rms that specialize in Whitehall’s closing subsequently put about many retailers have been left with little jewelry liquidations. $1.2 billion worth of inventory on the market. choice. As consumers have found it harder to “The retail jewelry market has never faced “If you’re a retail jeweler and things part with each discretionary dollar, recent this kind of competition and pressure before,” aren’t going well for you, often what you say economic woes have wreaked havoc on said Darren Fries, sales manager at liquidation is, ‘I’m going to get through this Christmas retailers of all stripes. fi rm Silverman Consultants. and see if I can make it work.’ It is the The slowdown in consumer spending, The worst may still be to come. “I think season that most of them point to and paired with increased competition in we’re going to lose a lot of retail jewelry to national chains. Liquidation specialists hope to come through with cash,” said Jim recent years from the Internet and home stores,” said Stevan Buxbaum, executive vice suggested that smaller jewelers could be more McGee, chief fi nancial offi cer of liquidator shopping, forced a number of jewelry president at liquidation fi rm Buxbaum Jewelry prone to feel the pain. Wilkerson and Associates. Dione Kenyon, companies to shutter this year. Through Advisors. “This is the front end of a cycle of a “We’re going to lose a signifi cant number president of the Jewelers Board of Trade, October, the Jewelers Board of Trade, a reduction in the number of retail jewelers. It’s of independents,” Buxbaum added. said that even in good years, the fourth credit and collections bureau focused on the quite possible that Kay Jewelers may reduce By volume, independent jewelers quarter is a proving ground. In other words, industry, counted 1,140 jewelry business their number of stores or their number of account for close to 50 percent of the when the calendar turns, liquidators could discontinuances. Bankruptcies in the year brands. Zales and Gordon’s Jewelers could be jewelry sold in the U.S., according to the fi nd themselves with even more business. were up 18.6 percent across the sector. trimming doors.” Jewelers Board of Trade. “The industry’s bankruptcies start to In August, the year’s largest retail The downsizing likely will not be limited Existing jewelers will have even more emerge in January,” Kenyon said. MOSCHINO BOUTIQUE 401 WEST 14TH STREET NEW YORK, NY

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JEWELRY & WATCH REPORT

Learning Curve A Tiffany & Co. brooch. Now is not just a buyer’s market for jewelry, it’s an aficionado’s dream. Here is a listing of new books and exhibits for those who are “just looking.”

FEELING BLUE Tiffany & Co. knows a thing or two about style. What started as a stationery and “fancy goods” emporium in 1837 developed into one of the world’s premier jewelry fi rms. In his latest book, “Tiffany Style” (Harry N. Abrams Inc., $50), John Loring, Tiffany’s design director, explores the evolution of American taste as seen through some of the most preeminent purveyors of luxury. From Elsa Peretti to Paloma Picasso, the 304-page tome tracks the rise of American style for the last 170 years. “We’ve become a very much more evolved society than when Tiffany opened its doors,” Loring said. “Americans were developing their own style based on nature and not inherited ideas from the baggage of European civilization. We have progressed brilliantly and can now see very different styles of jewelry today.” — Caroline Tell

TREASURES OF TEMPLE Temple St. Clair never intended to become a jewelry designer. She rarely adorned herself before creating her own 18-karat gold and gemstone pieces. “Designing jewelry was never my plan,” St. Clair said. “I wasn’t looking for a career in the traditional sense. I wanted a lifestyle that would allow me to continue to travel, look at art and architecture, read and explore. Somehow, all of these interests culminated for me in jewelry.” In “Alchemy: A Passion for Jewels” (Collins/ Design, $49.95), St. Clair reveals how her love of history, tradition, mythology and literature all led her into the jewelry world. The colorful book features photographs of St. Clair’s jewelry, as well as images of artifacts, paintings, people and places that have infl uenced her along the way. The designer also explores her collaborative WAY BACK WHEN relationships with Italian artisans, a superstitious Humans have long liked fascination with charms and a passion she gained to bedeck themselves in at an early age for traveling off the beaten path in baubles. Nowhere is that search of inspiration. — C.T. in more evidence than the “Bedazzled: 5,000 Years of Jewelry” exhibit, open at Baltimore’s Walters Art Museum A MODERN TAKE through Jan. 4. Peter Carl Fabergé, Louis Comfort Tiffany and René Lalique are The exhibit highlights iconic names of the 20th century who were among the rare few hundreds of pieces of to defi ne standards of luxury. Their work, infl uence fi ne jewelry of all and rivalry is the subject of “Artistic Luxury: types, from 3,000 B.C. Fabergé, Tiffany, Lalique,” an exhibit on view through the early 20th at the Cleveland Museum of Art until Jan. 18. century, that were The 300 or so pieces are culled from private collected by one of the and public collections and include rarely museum’s founders, exhibited objects from the collections Henry Walters. One of Princess Grace, Queen Elizabeth highlight of the exhibit, II, Neil Lane and Joan Rivers. said Sabine Albersmeier, “What distinguishes this associate curator of ancient collection is the number of private art at the museum, is an iris loans,” said Stephen Harrison, the corsage from Tiffany that won museum’s curator of decorative arts A René Lalique the grand prize at the 1900 Paris and design. necklace circa Exposition Universelle. Other Pieces on show include fi ve 1900. works of note include a brooch Imperial Easter Eggs and the by Art Nouveau designer René Imperial Basket of Flowers created Lalique and a section of the exhibit by Fabergé for Russian czars, dedicated to rings with different Tiffany’s stained glass Magnolia meanings. — Liza Casabona Window and Lalique’s Frogs and Lily Pads Vase. There are also about 75 objects from 50 other designers to put the three within their aesthetic context. Harrison said many of the pieces offered Tiffany’s iris corsage ornament fi rst inklings of modernism. decorated with sapphires, diamonds “This was a crucial point in the century of and other gems. design,” he said. — Marc Karimzadeh 46 East 57th Street - New York, NY 10022 - Tel 212-308-2900 9517 Wilshire Boulevard at 2 Rodeo Drive - Beverly Hills, CA 90210 - Tel. 310-276-7022 441 East Hopkins Avenue - Aspen, CO 81611 - Tel. 970-544-8303

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