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Thoroughly Modern Mini NEW YORK — Furs Had a Strong Presence on Runways Everywhere for Fall

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Thoroughly Modern Mini NEW YORK — Furs Had a Strong Presence on Runways Everywhere for Fall WWD Inside: Section ll PRADA NET FALLS 45.6%/2 CFDA AWARD NOMINEES/2 Fur In Depth WWDWomen’s Wear Daily • The Retailers’ TUESDAYDaily Newspaper • April 1, 2003 Vol. 185, No. 65 $2.00 Ready-to-Wear/Textiles Thoroughly Modern Mini NEW YORK — Furs had a strong presence on runways everywhere for fall. So it’s only natural that the mood would be in the spirit of the season’s youth movement, with its daring lengths and bold details. Mini-coats in vintage-type furs are high on the list of furriers’ favorites. Here, Ben Kahn’s industrial-zipped version in summer ermine. Boots by Sergio Rossi. Sunglasses by Morgenthal Frederics; Wolford tights. For more on furs, see pages 6 and 7 . ‘CNN Effect’ Goes On OR; STYLED BOBBI BY QUEEN As Iraq War Attracts Consumers’ Focus By Evan Clark and Jennifer Weitzman NEW YORK — The first week of spring and the arrival of the baseball season didn’t pull consumers out of their wartime shopping stupor. Stores reported more shutouts than home runs during the final week of the calendar month. Nordstrom was even left doubting its most recent forecast for the first quarter. Major chains gave tepid revenue reviews to the month, which wraps up this week for most stores. Concerns over the war in Iraq have glued many consumers to their See War, Page8 PHOTO BY PHOTO DAVID BY TURNER; MODEL: CASSIANE/SUPREME; HAIR CRYSTOPH BY FOR MARTEN VIDAL SASSOON; MAKEUP BELLABY HARL PILAR FOR SALLY 2 Sale of Fendi Stake Drops Prada Net WWDTUESDAY Ready-to-Wear/Textiles By Amanda Kaiser included Fendi. The Prada and didn’t specify by how much. Miu Miu brands accounted for Foreign exchange translation MILAN — Robust fourth-quarter about 83 percent of revenue, the subtracted about $51.8 million GENERAL Even the most lavish furs often have an edgy touch, a charming, flirty detail DAY, APRIL 1, 2003 DAY, growth wasn’t sufficient to keep company said. from full-year sales results, the S or a surprising reversal — and then there are those that are just plain cute. E Prada Holding NV’s full-year re- In the fourth quarter alone, company said. Currency fluctua- 6 U T sults from falling substantially Prada said its EBITDA “more tion in late 2002 hurt the sales re- Major retailers gave tepid revenue guidance for March, citing concerns over the , D under pressure from the sale of than doubled” to $77.8 million sults of European firms with well- 1 Iraqi war, which has glued many shoppers to their TVs, and the limp economy. W its stake in Fendi and a 2001 while sales rose 12.5 percent to developed overseas business as Kmart Corp. said it was shedding 660 more jobs as it prepares to exit W change in ordering procedures $456.8 million. the dollar and other currencies that cut into 2002 sales. The company didn’t furnish weakened against the euro. 3 Chapter 11 by the end of April, but other changes might be on the way. Net profit for the year ended earnings guidance for the current Europe accounted for just Solid fourth-quarter growth couldn’t keep Prada’s 2002 results from falling Dec. 31 shed 45.6 percent to year, but did commit itself to rev- more than half of company sales 2 under pressure from divesting its Fendi stake and a procedural change. $29.2 million from a pro-forma enue growth and further geo- last year: Italy generated 26 per- 2001 result of $53.4 million, graphic expansion. cent of 2002 revenue, while the TEXTILES: Fears over the outbreak of atypical pneumonia in Hong Kong which excludes results of the “Considering the particularly rest of Europe accounted for 25 10 devastated attendance at Interstoff Asia, the region’s most important textile fair. 25.5 percent stake in Fendi sold difficult market situation, we are percent. Another 23 and 26 per- EYE: The continuing story of Nancy Cooke de Herrera; primed for Pilates; to LVMH Moët Hennessy Louis satisfied with our performance cent were derived from North 4 doing a birthday dance, plus a scoop. Vuitton in November of 2001. in 2002 and we are ready to ap- America and Asia, respectively. Including the Fendi stake, net proach the challenges of 2003 in Prada said about half of its Section II: Fur In Depth, a special report, is included in this issue. income in 2001 was $60.6 mil- terms of growing revenue and sales derive from its 247 directly Obituary ..................................................................................................12 lion. Dollar figures have been expanding the group’s geograph- operated stores. Classified Advertisements ..................................................................14-15 converted from the euro at cur- ic presence through the continu- As reported, since full-year To e-mail reporters and editors at WWD, the address is rent exchange rates. al development of its brands,” and, in some cases, fourth-quarter [email protected], using the individual's name. Prada said negative currency chief executive Patrizio Bertelli profit figures began arriving from SUBSCRIPTION RATES impact and its adjusted delivery said in a release. Europe last week, Gucci reported U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. pattern accounted for a 16 per- Prada attributed the $54 mil- a 1.7 percent increase in net in- All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. Please allow 6-8 weeks for service to start. Individual subscription information/Single Copy Sales : (800) 289-0273; cent drop in full-year EBITDA to lion drop in full-year sales to a come for the fourth quarter ended outside U.S. (818) 487-4526; new group subscription information 212-630-4196 $226.8 million from $270 million change in product-delivery sched- Jan. 31 but a 27.4 percent drop for Postmaster: Send address changes to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. on a pro-forma basis in 2001. uling, which sped up the filling of the year. Bulgari notched an 11.6 WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue every month except July, and two additional issues in April and August, by Fairchild Publications, Inc. Sales for the year fell 3 per- orders. The company said the percent increase in 2002 profits; a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. cent to $1.7 billion from $1.75 bil- change, made in 2001, unnaturally IT Holding, a 141.8 percent in- WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., a subsidiary of Advance Publications Inc. All rights reserved. lion in 2001, excluding Fendi, and boosted that year’s results. crease, and Tod’s and Marzotto No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, 9.2 percent from the reported Stripping out those effects, Prada year-over-year decreases of 2.5 including photocopying or recording, or by any information storage or retrieval system, except as may be 2001 figure of $1.87 billion, which said sales would have risen, but and 24.6 percent, respectively. expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 Periodicals postage paid at New York, NY and other offices. Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9 GST # 88654-9096-RM 0001 Canada Publications Agreement # 40032712 Printed in the U.S.A. All signed articles published in the paper represent solely the individual opinion of the writer and not those of WOMEN’S WEAR DAILY. CFDA Taps Vogue Pair, Morgan Stanley For Web site access, log on to www.WWD.com 2 From U.K. for Awards Pushes for LVMH In Brief By Eric Wilson Suit Disclosures ● MORE TIME FOR TAUBMAN: Simon Property Group Inc. and NEW YORK— Carolina Herrera, PARIS — Like the war in Iraq, Westfield America Inc. on Monday extended their $1.7 billion, or Marc Jacobs, Donna Karan and the $100 million lawsuit LVMH $20 per share, all-cash offer for Taubman Centers Inc. until mid- Narciso Rodriguez led the nomi- Moët Hennessy Louis Vuitton night on May 30. As of March 28, when the most recent offer ex- nations for women’s wear de- launched last November against pired, Taubman shareholders had tendered 40.3 million shares, signer of the year, as the initial Morgan Stanley will probably according to Simon. Taubman said in a statement that the amount round of balloting for the 2003 take longer than many people tendered was less than 50 percent of the total shares, common and Council of Fashion Designers of originally thought. preferred, outstanding and that the share count was insufficient to America Fashion Awards was fi- Lawyers from the two sides meet Simon’s own minimum tender offer condition. The two have nalized on Monday. are set to meet today to wrangle been battling for control of Taubman since last November. Nominees in five apparel over questions first confronted and accessories categories and at a court hearing last month. ● SECRET PROMOTION: Victoria’s Secret Beauty promoted the recipients of four special Investment firm Morgan Stanley, Michael J. Nicholson to chief financial officer. He joined VS awards, based upon votes cast accused of bias in its equity re- Beauty in March 2000 as controller. VS Beauty is a division of by 450 designers, journalists, re- search on LVMH and luxury Intimate Beauty Corp., which also operates aura science LLC and tailers and stylists, were ratified rival Gucci Group, wants the is a wholly owned subsidiary of Limited Brands.
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