Page 1 Wednesday

MAINSTREAM: ▲ NEWS: Retail Store players eye NYC exclusives vacancies, page 2. may be

▲ EXEC TECH: bright spot, ▲ St. John page 8. RETAIL: Neiman’s opening makes more online store, ▲ job cuts, page 2. page 10.

Women’s Wear Daily • The Retailers’ Daily Newspaper • April 8, 2009 • $3.00

WWDWEDNESDAYSportswear Blazer Glory The Eighties are back in all their strong-shoulder and nipped-waist splendor, with edgy accessories to complete the look. Here, Twenty8Twelve by S. Miller’s stretch dobby jacket over Iodice’s silk jersey dress and Davidelfi n’s leather shirt with Vera Wang Lavender Label’s polyester and spandex shorts. Eugenia Kim hat; By Malene Birger belt; Dr. Martens boots. For more, see pages 6 and 7.

Parlux Breaks Ground: Jay-Z, Rihanna and Kanye Get a New Kind of Deal By Pete Born In one of the most unusual deals in the glitzy annals of celebrity licensing, Shawn “Jay-Z” Carter, Rihanna and Kanye West are entering into a relationship with Parlux Fragrances Inc. that departs dramatically from the licensing norm. The hip-hop stars, along with an unidentified “well established” female artist, are becoming partners with the Fort Lauderdale, Fla.-based firm through a deal with Iconic Fragrances LLC, a firm in which Jay-Z is a major principal and Rihanna and West are licensees. Instead of receiving cash from licensing royalties, the stars will get royalties and profit sharing in the fragrance brands they launch. But most of the payoff will be through See Parlux, Page 4 PHOTO BY KYLE ERICKSEN; MODEL: JESSICA PITTI/IMG; HAIR AND MAKEUP BY VANESSA EVELYN/PETRA ALEXANDRA; FASHION ASSISTANT: AJA MARIE JOHNSON; STYLED BY MAYTE ALLENDE MAYTE AJA MARIE JOHNSON; STYLED BY ASSISTANT: ALEXANDRA; FASHION ERICKSEN; MODEL: JESSICA PITTI/IMG;VANESSA EVELYN/PETRA KYLE HAIR AND MAKEUP PHOTO BY BY 2 WWD, WEDNESDAY, APRIL 8, 2009 WWD.COM More Job Cuts at Neiman Marcus Neiman Marcus Inc. has cut 131 employ- have also trimmed staff. ees in its third round of layoffs since January. In February, the company imposed a 2 to 4 WwDwednesdSportswearay The reductions on Monday included 31 staff- percent pay reduction on all management and FASHION ers in marketing, public relations, advertising salaried employees. About 3,000 employees were The Eighties are back in quirky print mixes, and creative services as a result of an organiza- affected. Sales associates, who typically are paid s 6 lopsided proportions and punk accessories. tional review that has been going on for almost a straight commission, and support staff on hourly year, said spokeswoman Ginger Reeder. wages were not included in the wage cuts. GENERAL In addition, Neiman’s eliminated 100 sales sup- Neiman’s reported a net loss of $509.3 million Shawn “Jay-Z” Carter, Rihanna and Kanye West port positions across the company nationwide. in the second quarter ended Jan. 31 as a result of 1 The Dallas-based chain has laid off 6 per- more than half a billion dollars in writedowns. are entering into a deal with Parlux Fragrances cent of its workforce this year — a total of 956 The retailer posted a 20.9 percent comparable Inc. that departs from the licensing norm. people — as it copes with the drop in spending sales decline in February, which followed dou- As rents drop and space opens up, some retailers, that began last fall and has hit the luxury sector ble-digit declines every month since September. 2 such as Nordstrom Rack, have returned to the hard. Saks Fifth Avenue and Barneys New York — Holly Haber Manhattan market seeking sites. Alessandro Dell’Acqua is exiting Malo after only 4 a year as its creative director, leaving the line to be designed by the brand’s in-house team. Lower Rates Could Boost N.Y. Retail 5 Jimmy Choo has formed a joint venture with Bluebell Far East Ltd. to own and operate Choo By David Moin encourage them to get into some markets that in stores in Hong Kong. the past weren’t feasible,” Co said. MAINSTREAM: Exclusive brands appear to be As store vacancies rise and rents fall “My sense is that on a market-by-market and 8 in Manhattan, some eager retailers appear ready location-by-location basis, a retailer, if there is one antidote to the rash of sluggish sales at to pounce on the spoils. a potentially fabulous location open, may op- stores around the country. The bargains are attracting interest from a portunistically take it,” said Roxanne Meyer, Ronald Van der Vis, former chief executive officer lineup of aggressive companies that includes executive director, UBS Investment Research. 11 of Pearle Europe, will become group chief executive Nordstrom Rack, The TJX Cos. Inc., H&M, Zara, “But I don’t have the sense that retailers are officer of Esprit Holdings Ltd. Topshop and CVS Corp., according to sources. on the margin opening more stores than previ- Amid the ravages of the recession, which fol- ously planned, and in fact I believe retailers are 14 Gap Inc. chairman and chief executive officer lowed boom years in which Manhattan’s real es- moreso opportunistically looking to close stores Glenn Murphy received total compensation of tate was among the most expensive and coveted where they can get out of a poor location.” $9.3 million in 2008, his first full year on the job. in the world, the latest developments could alter Topshop, which opened its first U.S. store, the face of retailing in the city. They follow a is interested in high traffic areas. One possibil- Classified Advertisements...... 15 moribund period — with the exception of major ity is 34th Street, where Vornado Realty Trust, To e-mail reporters and editors at WWD, the address is openings recently such as Topshop in SoHo and which provided the SoHo site, has substantial [email protected], using the individual’s name. Giorgio Armani on Fifth Avenue — that picked property holdings. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 up momentum because of tight credit and re- Through the 2008 fourth quarter, double-digit FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 197, NO. 73. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with duced consumer spending. sales declines industrywide one additional issue in January, May, October, November and December, two additional issues in March, April, June “Apparel chains, big- and rising unemployment and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division box retailers and discount- scared retailers from scouting of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services ers are out looking,” said Manhattan sites. However, de- provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage Joe Harbert, chief operat- clining rents and real estate paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. ing officer of Cushman & availability, as well as some Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian Wakefield’s New York metro recovery in the stock market addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS region during a presenta- and optimism that the econ- CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA tion Tuesday on commercial omy may have bottomed out 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed real estate trends for the have encouraged retailers to on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. first quarter of 2009 and the renew the search. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online prognosis for the year. On Madison Avenue in at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Harbert characterized the first quarter of 2009, Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please the retail real estate market ground-floor rents on av- advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT as “a more promising pic- erage from 57th to 72nd RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, ture from last quarter when Streets dropped to less than UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER demand was largely nonex- $1,000 a square foot for the MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY istent.” However, only a lim- first time in two years, to WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ited number of deals have $947. That’s a 10 percent, or ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. been completed, as land- a $110 drop, from the end of lords and tenants “struggle” 2008, according to C&W. to agree on rent prices. Madison Avenue’s avail- “In November, December ability rate increased slightly DAILY In this economic climate, and January, we had no activ- from the end of 2008, ending ity,” said Gene Spiegelman, Availability on Fifth Avenue from 42nd Street the first quarter at 12.97 per- QUote “the old saw is turned on C&W’s executive vice presi- to 49th Street reached 15.3 percent at the cent, and has remained with- dent. “Then, in February, the end of the fourth quarter. in the 12 percent range for market all of a sudden start- the past three quarters. C&W its head: familiarity breeds contentment, ed opening up, and it has continued into April.” defines availability as the combination of vacant Spiegelman said there are “a number of deals space and occupied space that is available through and unfamiliarity breeds contempt. in the proposal stage” and that retailers and direct lease by landlords or sublease by tenants. ” landlords are “in this dance to determine what In SoHo, the average ground-floor asking — Stephen Doyle, creative director, Doyle Partners. Page 12. is value — what are retailers willing to pay and rents dropped to $241 a square foot, a 14 per- what are landlords willing to accept. Everyone cent or $39 decrease from this time last year. is feeling each other out.” Availability declined by 0.6 percentage points Spiegelman declined to specify any deals in from this time last year, ending the first quarter Gloria Vanderbilt in 1972. the works or which retailers are actively seeking of 2009 at 9.2 percent. Manhattan locations. On the Upper West Side, along Broadway “Our position on growth and expansion really from 60th to 86th Streets, availability remained has not changed,” said Pete Nordstrom, presi- stable from this time last year, ending the first dent of merchandising for the Seattle-based quarter of 2009 at 7.9 percent, a 0.4 percentage TODAY ON Nordstrom. “We are thoughtfully and selectively point decrease. Average ground-floor asking pursuing opportunities to grow both in the full- rents fluctuated over the past several months, line stores and Rack division. ending the quarter at $344 per square foot, a 7 “We are a national retailer, but there is really percent or $22 increase from this time last year. one place where our absence is conspicuous, and Availability on the stretch of Fifth Avenue that is Manhattan,” Nordstrom said. “We continue from 42nd Street to 49th Street reached 15.3 per- WWD to look at sites on Manhattan, as it is a fantastic cent at the end of the quarter from about 9 per- .com market that, for the right opportunity, we would re- cent in the fourth quarter, surpassing Madison ally like to be there. At this time, there may be more Avenue as the submarket with the largest avail- • Back in Time: attractive opportunities to consider for a Rack loca- ability. Also in the first-quarter, ground-floor ask- Gloria Vanderbilt tion than a full-line store. We have nothing new to ing rents fell to $596 per square foot, down 20 in Her Own Words announce. We continue to look and consider.” percent or $147 from $743 per square foot at the In general “specialty retailers and discount- end of 2008. Two notable departures from the • Featured Images: ers are still growing but at a slower pace,” said neighborhood were Kira Plastinina and Circuit Parties of the week Tiffany Co, a debt analyst at Fitch Ratings. City, which both shut down after bankruptcies. • More images from the Lower rents and the availability of space Spiegelman said that corridor has “always Chanel film premiere “could encourage [retailers] to look at reloca- struggled to establish a strong identity,” though tions, especially if there are locations available the additions of Zara and H&M in the past year • Global breaking news now that weren’t available before, and it could on 42nd Street should help. • Daily stock prices WWD, WEDNESDAY, APRIL 8, 2009 3 WWD.COM Raf Simons Forges Ahead FASHION SCOOPS By Emilie Marsh and in the way I wear my own clothes, not CHOP CHOP: Michelle and Barack Obama are returning from abroad, but apparently just in the fit.” their summer vacation will be closer to home. Secret Service agents have been spotted MILAN — Other designers may be clipping His debut ad campaign, which will casing Martha’s Vineyard for what is said to be a late-August two-week getaway. The their wings, but Raf Simons is spreading his. launch in select magazines for fall, aims to First Family’s destination is believed to be East Chop, the sleepier side of Oak Bluffs. Simons detailed plans for his epony- support this message. Obama wouldn’t be the first president to hightail it to the Massachusetts isle for some mous label, which include his first ad cam- “It’s another way to communicate with sun ’n’ fun. paign, a small furniture collection and two your audience. Fashion shows can only do Bill Clinton and Hillary Rodham Clinton first joined the summer crowd to get away more stores in Asia — all despite the grim so much,” the designer said. from the Oval Office. His golfing buddy Vernon Jordan would surely lend an ear or a tee economic climate. Simons, who majored in furniture de- to Obama. With the group’s sales expected to in- sign, is also returning to his roots with a col- Bill Gates and Warren Buffett are leading members of the island’s brain trust. But crease 15 percent to 9 million euros, or lection of household items for 2010. should the president need some comic relief, Spike Lee, David Letterman, the Farrelly $12.1 million at current “I haven’t designed brothers, Larry David, Bill Murray, Ted Danson and Michael J. Fox are island goers. And exchange, this year, the Raf furniture since I was surely Jay-Z and Beyoncé Knowles, who were regulars last summer, could help keep the Belgian designer, who Simons 23,” he said. “A very long First Family entertained. And the President wouldn’t have to wander far from the golf launched his signature time ago, an Italian man- course or the beach to meet the press. Diane Sawyer, Mike Wallace and Walter Cronkite men’s wear label in 1995, ufacturer approached know the lay of the land. has every reason to be me to design furniture positive. for them. If the project HOT COCO: Dressed in a floral bustier frock from Chanel’s latest couture collection, “You prepare yourself had happened, I may Audrey Tautou cut a Thumbelina figure at the premiere of Anne Fontaine’s “Coco Avant for a difficult year ahead never have become a Chanel (Coco Before Chanel)” — in which Tautou plays the famous couturier — held at a — I am well-informed. fashion designer.” Champs-Elysées theater in Paris on Monday night. I know companies are Simons said a Belgian Adapted loosely from an Edmonde Charles-Roux biography, the Warner Bros. film struggling, but without furniture maker, who focuses on the early part sounding pretentious, I re- had collaborated with of Chanel’s life and begins ally can’t believe we have Belgian designer Ann with her arrival at the Audrey such positive results,” Demeulemeester, would orphanage where she grew Tautou Simons said at the head- produce the collection, up and learned to sew. It quarters of Futurenet, his but he did not disclose follows her arrival in high de facto maison. further details. society: meeting Etienne Futurenet holds exclu- Futurenet chief ex- Balsan, played by Benoît sive licensing rights for ecutive officer Stefano Poelvoorde, and then all Raf Simons labels via Martinetto lauded the Arthur Boy Capel, played a joint venture agreement performance of Simons’ by Alessandro Nivola, with Japan’s Mitsui Group, work, citing “extremely” suc- and ends with her debut which they inked in 2005. cessful collaborations with runway show. Production, for the most part, WwD Eastpak and Dr. Martens and After the screening, is centralized in Italy. the opening of 400 Fred Perry by the cast headed to Place Musing on his fall collec- Raf Simons accounts in 2008. Vendôme for a cocktail in

Men’s STEPHANE FEUGERE tion, which marked a shift to “We are doing great numbers Chanel’s jewelry boutique. BY classic tailoring, Simons said he in the most difficult and challenging Tautou, who hails from the Marie Emmanuelle wanted “to introduce a more mature col- market,” Martinetto said. same region in France as Gillain Devos lection in order to appeal to a more ma- Futurenet and Mitsui currently oper- Chanel, revealed she’s also PHOTOS ture customer. ate two freestanding Raf Simons stores, in a wiz seamstress, having “I really thought about how I could cre- Tokyo and Osaka. Martinetto said the part- been taught to sew as a child by her grandmother. “Obviously I had neither the taste nor ate Brioni and Ermenegildo Zegna-type ners would add two franchised stores in the talent of Coco Chanel,” Tautou said, adding she would love to keep hold of the tweed suits — but in my own way,” said Simons, 41. Hong Kong and Beijing by 2011 and hope jacket she wears in the film’s horse-riding scenes. Tautou’s outfits, by costume designer “The collection is evolving as I have evolved one day to open a unit in New York. Catherine Leterrier and often adapted from men’s attire, were the envy of the rest of the female cast. “I really understood Chanel’s role in freeing women of corsets,” said Marie Gillain, who in the role of Chanel’s sister Adrienne, had to wear the restrictive garment. “The corsets Louis Vuitton Unveils New Timepieces were OK. It was those giant hats that were the trouble,” countered Emmanuelle Devos, who plays the flamboyant actress Emilienne d’Alençon in the movie, for which Stephen By Sophia Chabbott of watches and jewelry. Jones and Pippa Cleator created some 800 hats. Nivola said the moustache he grew to “It’s not that we don’t have play Boy Capel drew some unexpected reactions. “I was living alone in the Marais, and Louis Vuitton has the demand for more, I’d be walking along and people would say ‘Allo, Freddie Mercury,’” he laughed. Nivola, launched several new but there aren’t enough may also appear, quite by accident, in Jan Kounen’s Chanel film, also out this year. “I was watch collections in a bid watchmakers to create having riding lessons and Anna Mouglalis arrived for her lessons with all the film crew for to impress customers with these masterpieces.” the making-of the DVD. They didn’t know I wasn’t in it,” he laughed, adding: “Maybe I’ve the depth of its technical The company also un- made it into both films.” prowess. veiled its Tambour styles The star of the new in a steel and gold run. GAME FACE: It looks like another New York landmark is getting some runway action. With watches, which were un- They range from 6,200 to Mercedes-Benz Fashion Week relocating from Bryant Park to Lincoln Center’s Damrosch veiled in the company’s Louis 8,000 euros, or $8,224 to Park next year, a newly formed nonprofit charity group, which calls itself the New York Manhattan headquar- Vuitton’s $10,612. Several of the Fashion Week Organization, hopes to bring some shows to Madison Square Garden, ters on Tuesday, is the Tambour dials from the new watch- starting in September. The organization — which is not affiliated with IMG, the producer Tambour Mystérieuse. Mystérieuse. es feature Vuitton’s mono- of Mercedes-Benz Fashion Week — has booked dates between Sept. 8 to 23 at MSG’s Priced at about 200,000 Below, gram logo in creative Theater venue. Few details were available, but the organization plans to invite designers euros, or $265,000 at cur- another style and colorful depictions, to participate in a series of consumer fashion shows, where tickets will be sold. All rent exchange, the watch from the while the natural rub- proceeds of ticket sales will benefit Garden of Dreams, a charity that works closely with has a round dial and is Tambour line. ber straps of the watches Madison Square Garden and aims to help children in crisis. The charitable group plans to comprised of a mecha- are pressed with either continue with these charitable shows each season. nism that is encapsulated the LV monogram or the by two sapphire crystal discs, allowing Damier check and come in a variety of WHO’S THE BOSS?: Hugo Boss’s Ingo Wilts, senior vice president and the creative force the watch itself to float within the bezel colors. The new collections start at 2,250 behind upscale fashion lines Boss Black, Boss Selection and Boss Green, will exit framing it. euros, or $3,382, for the Tambour Lovely the company in June. A Hugo Boss spokeswoman confirmed the change but declined With an eight-day, eight-hour power Cup, which comes with either a mother further comment. reserve, the unisex watches are avail- of pearl or black lacquer dial and the able for custom order with options option of diamonds. ART IN MOTION: For her latest collection of wedding such as monogramming the second The steel and gold styles will hit Dolly gowns, Carolina Herrera channeled inspiration from hand with the wearer’s initials, stores this month, and the rest will Parton fashion featured in the work of Edgar Degas, Sandro selecting gemstones to place on be available at Vuitton watch and Botticelli and Franz Xavier Winterhalter. Costume the platinum, white, yellow or red jewelry shops around the world designer William Ivey Long was one of the guests at gold case, and straps which come later in the spring. Vuitton jewelry Herrera’s runway show Sunday at Tiffany & Co.’s Fifth in any leather. and watches are sold only within its Avenue flagship. “I’m playing hooky from ‘9 to 5’ during The watch is the first Vuitton has exclusive boutique network. There are our dinner hour. I’m going back to see Dolly Parton created completely in-house, from con- 25 stores that sell the watch and jewelry now. Our first preview” was Tuesday, he said, adding ception to completion at its La Chaux collection in the U.S. Lily Tomlin dropped by a recent rehearsal. Long said he de Fonds factory in Switzerland. Five Bensoussan said the bulk of Vuitton’s approached the late Seventies costumes without any years ago, the brand launched a tourbil- watch sales emanate from Japan, with “Dynasty”-type shoulder pads. “There is a lot of body- Images lon which was assembled in-house, but about 30 percent of sales, closely fol- shaping and color. Remember this is when Diane von the parts came from outside workshops. lowed by China, Europe and finally the etty Furstenberg broke on the scene,” he said. /G

Each of the Tambour Mystérieuse U.S. which comprises 20 percent. The er Parton has been known to be a scene stealer, but watches, which take roughly a year to make, men’s watch segment generates about 40 Long described her as “America’s sweetheart….She comes in a miniature Vuitton trunk and will to 42 percent of sales, said Bensoussan. Mill really is. Today she brought in fudge she had cooked for yan be shown to customers in the fall on a one- “We are not averse to what’s going on in R all of us, and the other day it was cookies.” Apparently by on-one basis. the market,” he said. “But we are in direct the original “9 to 5”-er rustles up such delicacies in her “We sell about one tourbillon a month,” contact with our consumers, so we know what tricked-out RV, which she retreats to once the theater said Albert Bensoussan, the firm’s director sells and what does not sell right away.” photo fades to black each night. 4 WWD, WEDNESDAY, APRIL 8, 2009 WWD.COM Parlux Inks Celebs in New Kind of Deal Continued from page one fourth quarter, “assuming no further major deterio- warrants to buy Parlux stock. Rihanna ration in the global economy.” Neil Katz, chairman and chief executive of- Katz acknowledged the impact of economic con- ficer of Parlux, said: “Jay-Z is betting these four ditions — and its effect on Parlux’s stock — in his celebrities are going to have a significant effect announcement Tuesday. on the company, not only in sales but in profits “We are conscious of the general economic con- and therefore in the share price.” ditions that have unfairly affected the value of our The deals have already been signed with shares for our shareholders,” he said. “However, we Rihanna and West, Katz said. Through Iconic, believe this proactive investment by Jay-Z, Rihanna the stars will receive four million warrants to and Kanye West is an indication to the marketplace buy Parlux stock at $5 a share. Shares closed of the underlying value of Parlux.”

Tuesday at 90 cents, up 5 cents, or 5.9 percent, ee and have traded from a 52-week low of 59 s cents, reached on March 4, to a high of $7.15, e chin Renato Semerari Said Exiting Sephora Europe

reached Aug. 28, in the past year. org The second pair of celebrities, Jay-Z and PARIS — Renato Semerari will leave his post as Y Ge the unidentified female star, are expected to B chief executive officer of Sephora Europe on May ST sign after the Parlux stockholders have autho- E 1, according to reports circulating in the market. ; W rized the deal, since a much greater number r His next career move could not immediately be of warrants will be needed for Jay-Z and the learned. ichne E other celebrity. It is believed Jacques Levy will act as interim eve

Asked if the fourth star is Jay-Z’s wife, t Sephora Europe ceo on top of his current role as Beyoncé, Katz dismissed the question. S president and ceo of Sephora. Semerari began working at the LVMH Moët OTOS bY

H Hennessy Louis Vuitton-owned perfumery chain on Oct. 1, 2007. Prior to that, within LVMH, he was P Y-Z BEAUTY BEAT A the president and ceo of Guerlain and the inter- He underscored the unusual nature of the national marketing director of Parfums Christian deal by saying, “What they have done is, for the Dior. Semerari also served as marketing director for first time, they’ve calculated not how much they Southern Europe for Procter & Gamble Co. can sell but what they can make in profits and Rihanna and J — Jennifer Weil how the company can succeed.” Shawn “Jay-Z” Carter The company plans on launching Rihanna and Kanye West fragrances in the summer of Igaki Takes Over as Takasago CEO 2010 and expects to introduce more fragrances by Jay-Z and the fourth celebrity the following LONDON — Ritaro Igaki has been named presi- year, Katz said. dent and chief executive officer of Tokyo-based More details on the latest deal are expect- fragrance supplier Takasago International Corp., ed today when Parlux sponsors a conference where he replaces Hiroki Take, who passed away call to discuss the deal and preliminary re- last month. sults for the fourth quarter ended March 31. Take died suddenly of heart failure on March 24, Through the first three quarters of its fiscal according to the company. He was 65. year, Parlux sustained a net loss of $5.8 mil- Igaki, 61, was most recently director and execu- lion, or 28 cents a diluted share, versus net tive vice president, chief director of administration income of $2.1 million, or 10 cents, in the and director of accounting at the fragrance supplier. comparable prior-year period. Net sales in- He began his career at Takasago in 1971 and has held creased 8.6 percent to $123 million. several roles there, including chief financial officer When third-quarter results were released Kanye West of the company’s U.S. arm. in February, Katz said he expected a profitable — Brid Costello OBITUARY Alessandro Dell’Acqua Exiting Malo Drom Fragrances’ Bruno Storp By Luisa Zargani ministrators for IT Holding earlier this year. Dr. Bruno Storp, the former chief executive Dell’Acqua said he is now focused on his own officer of Drom Fragrances, died of pneumonia March 30 at MILAN — Alessandro Dell’Acqua is departing as Malo’s namesake collection, controlled by Luxembourg- the Harlaching Hospital in Munich, Germany. He was 82. creative director after just a year. based holding group Redlux. The designer said his Storp took over Drom Fragrances from his father in The line will be designed by the brand’s in-house latest project, Black Dress, a capsule of 20 sartorial, 1946, at the age of 19, representing the second genera- design team starting with the spring-summer 2010 col- black dresses that was launched for fall will continue tion to run the family-owned fragrance supplier. He is lection, a spokesman said. into spring. credited with transforming Drom from a local player After Dell’Acqua’s first sea- “I’m not looking at consult- to one of the world’s leading fragrance houses, which son, “the situation grew more ing anymore, unless perhaps for remains one of the few complicated and it was neces- a Paris-based collection. That wholly independent sary to cut costs and focus on a would be my dream,” he said. family-owned compa- smaller collection, going back Dell’Acqua succeeded nies, the firm noted. to classic Malo,” he said. “They Tommaso Aquilano and Under his guidance, don’t need a marquee name or Roberto Rimondi at Malo Storp expanded the a creative director. It’s wise to after Ferré tapped the duo last company’s internation- go with a team.” spring. Aquilano and Rimondi al presence, founding Malo is controlled by IT joined Malo in July 2006 to re- subsidiaries in the U.S., Holding SpA, which went into position the brand and expand Japan and Australia. administration in February. its visibility around the world. “For over 60 years, The Gianfranco Ferré and The designers added a life- our father stood for Exté brands and production style appeal and a trendy edge Drom’s uniqueness in the unit Ittierre SpAare also under to this historical brand, known fragrance industry,” said the IT Holding umbrella. for its fine Italian cashmere his son Dr. Ferdinand Sources said Malo has at- and also brought new woven Storp, managing direc- tracted interest from more pieces to the collection. tor of Drom Fragrances. than a dozen potential buyers. With Dell’Acqua, the strat- Dr. Bruno “He was a traditionalist The designer conceded egy was to refocus on Malo’s Storp in who stood with both feet there were issues at times heritage and its core knit- 2006. firmly on the ground. At with Malo’s suppliers and “it wear business. The brand was the same time he always was a difficult situation,” al- founded as Malo Tricot in 1972 welcomed new ideas, though Dell’Acqua said he re- by the late Alfredo Canessa seeking out innovative solutions in all areas. We will miss mains on friendly terms with and his brother Giacomo, and his straightforward nature, his generosity and his open, chief executive officer Vittorio was sold to IT Holding in 1999. cordial approach.” Notarpietro. The Naples-born Dell’Acqua Storp turned the business over to Ferdinand in 1995, But he did not place blame. started his career in 1995 with after more than 50 years of leadership. His other son, IT Holding “is a company that Alessandro Dell’Acqua A A Milano, his first indepen- Andreas, joined the business in 2002. has given a lot to Italian fash- dent collection, with a strong Aside from his two sons, Storp is survived by daughters ion, and has helped a lot of de- focus on knitwear. Until the Monika Benecke, Susanne Dosch and Franziska Storp; a signers,” Dell’Acqua said. “There’s a group of great spring, he was also creative director at La Perla. sister, Muzz Golden, and 11 grandchildren. people working to help it get back on track.” After showing in New York for a few seasons, Services were held on Tuesday at the cemetery Italy’s minister of finance appointed Andrea Malo opted for a presentation by appointment in Waldfriedhof in Munich-Solln, Germany, at 11 a.m. Ciccoli, Stanislao Chimenti and Roberto Spada as ad- Milan in February. — Gillian Koenig WWD, WEDNESDAY, APRIL 8, 2009 5 WWD.COM MEMO PAD HOME COOKED: After the deaths senior vice president and group account Jimmy Choo Strikes Deal of Domino, Country Living, director at Initiative, pointed to relative Home, Cottage Living, House & signs of life in the housing market and Garden and Blueprint, and the mortgage rates being at an all time To Expand in Hong Kong exits of brand extensions like O at low. “The reality is, it was a pretty Home and Vogue Living, what’s left saturated category, where some By Samantha Conti for shelter magazines? were successful and some were This particular recession offers a doomed, but home life is going to LONDON — Jimmy Choo said Tuesday it formed a joint ven- brutal paradox for the category: People continue to be important to the ture with Bluebell Far East Limited to own and operate may be nesting, but the same housing consumer,” she said. Choo stores in Hong Kong. bubble that enriched these magazines AD’s Capua pointed out the In October, the brand will open a 1,000-square-foot fl ag- and grew the category in the fi rst place also Home Design show had 350 ship on the ground fl oor of The Landmark in the Central helped trigger the crisis. Moreover, the exhibitors, 100 more than last district. The new Hong Kong unit will replace Choo’s luxury-oriented titles that positioned year, and its trade day/VIP attendance smaller one, which has been in the same shopping com- themselves as style books no longer have a was up 47 percent. “From the fourth quarter plex since 2004. chance to pick up pages from increasingly to just recently, the mood was, ‘fi gure Two additional Hong Kong locations have recently parsimonious fashion advertisers. out how to survive,’” he said. “In opened under the partnership: A 1,100-square-foot store And print magazines in general are the last four weeks, the tone has at Elements in Kowloon, and a 450-square-foot store at disadvantaged by a three-month lead improved, and people are coming Hong Kong International Airport. All of the new stores time in an economic moment when back to showrooms.” — Irin Carmon carry the full range of Choo accessories and eyewear. advertisers are nervously making The Jimmy Choo units in Hong Kong had been oper- short-term decisions. MADE IN MALIBU: It was just last year ated under a distribution agreement with Bluebell. “This It’s no wonder the remaining when Op relaunched exclusively at Wal- strategic partnership will allow us to better serve our titles are seeing at least Mart with a star-studded ad campaign dedicated clientele,” in Hong Kong, chief executive offi - 25 percent declines so featuring Rumer Willis, Kristin Cavallari, cer Joshua Schulman said. far this year, from an Christina Milian, Josie Maran, Pete Wentz, Choo already has a retail joint venture with Bluebell already tougher 2008, Corbin Bleu and Wilmer Valderrama. This in Japan. The brand also has expansion plans in the the category’s shrink season, the Iconix Brand Group-owned junior Middle East with partners DFS. A Jimmy Choo unit notwithstanding. “Most and young men’s brand has sparked a new opened last month at Galleria International airport advertisers had reduced their lineup of fresh faces for what the company calls in Abu Dhabi, while one at Jeddah’s Stars Avenue will schedules so much in [the now- the “Summer of Music” spring campaign. launch this year. defunct magazines] that whatever was The new ads feature AnnaLynne McCord, On the home front, the company is reporting a robust left over wasn’t translated to the rest of the Sophia Bush, Solange Knowles, Joel Madden, Brody business in the U.K., its local market. Sales at Harrods titles,” said Deborah Burns, chief brand offi cer of Jenner, Cody Linley and Bow Wow in what was quite are 35 percent ahead of last year, and there is a strong Hachette’s Luxury Design Group. the production to shoot. In order to get the cast into demand from the tourist market, Schulman said. That company’s strategy has been to fold the summer concert mode, the company produced a live He added that Choo customers are either tapping into middle-market Home and put Burns in charge of both Good Charlotte concert on Westward Beach in Malibu, Calif., the very high end of the pyramid, snapping up the $1,395 Metropolitan Home and Elle Decor, doubling down on as a backdrop for the shoot. The result is a bunch of images Claudia embroidered stiletto, or into entry-level price niche and luxury. “The luxury consumer is still the only capturing the Op cast of celebrities enjoying their time at the points — and grabbing espadrilles priced at $375. consumer really spending, even though their spending is concert, riding bikes and skateboarding at the beach. “The customer is defi nitely voting for fashion, and off,” Burns argued. “For us, in this period of time, share “We had this great product that was supported by they want something different from what they already growth has been tremendous.” Year to date through April, a really big marketing push, which proved to be really have in their closets,” Schulman said. He said some Choo Elle Decor was down 22 percent, to 253 pages, and successful for the brand and for Wal-Mart,” said Dari customers may even be trading down, but they’re still de- Metropolitan Home was down 27 percent, to 190 pages. Marder, chief marketing offi cer at Iconix. “Everything we manding fashion. “They are not buying replacement ba- House Beautiful, the oldest title in the category, has do on the marketing end is done in order to translate into sics,” he added. pursued a different tack: It’s widely diversifying its ad base, sales, and we really saw that happen with the relaunch of In other developments, the brand will receive with 70 percent of its brands this year so far being new to Op. This season is all about getting a new, diverse group Nordstrom’s 2009 Partners in Excellence Award next the publication. That means the presence of mass brands of stars in order to anniversary the success of the launch.” month. The award is given to the top vendors in the store like Hellmann’s mayonnaise, Iams cat food and Wal-Mart The ads will launch this month in issues of fashion, in terms of profi ts and sales, and whose organizations ex- alongside the magazine’s several-year focus on color and lifestyle and entertainment magazines, as well as on emplify a spirit of partnership. the paint accounts that come with it. Publisher Kate Kelly billboards and on op.com. — Julee Kaplan Previous recipients include Burberry, Juicy Couture Smith described it as meeting the reader where and Tory Burch. The award will be presented on May 19 she is. Year to date through April, the magazine at Nordstrom’s annual meeting of the board in Seattle. had 166 ad pages, down 23 percent. The Hearst title has also been looking to the beauty industry to make up for the pages lost by the housing crunch, with recent buys from Olay, Clairol and L’Oréal. It’s not alone in lifestyle Proenza Schouler Set titles in looking to beauty: Coastal Living, a Time Inc. title with a new editor, M. Lindsay Bierman, was recently redesigned to include two beauty- To Bow at Pitti W Fair product oriented columns, and picked up By Andrew Roberts Aveeno and Neutrogena pages for its trouble. Arguably the toughest spot in the category MILAN — Proenza Schouler is to make its European debut right now belongs to Architectural Digest, at Florence, Italy-based trade fair Pitti W in June. traditionally the biggest of the high-end books. The label, launched in New York in 2002 by design- It was down precipitously through April: ers Jack McCollough and Lazaro Hernandez, will stage almost 50 percent, to 270 pages year to date. “a special event” at a “unique location” in the renais- Publisher Giulio Capua attributed the drop to sance city to celebrate the opening of the spring sum- half of AD’s business being in nonendemic mer 2010 season, organizers of Pitti Immagine said luxury lifestyle — automotive, travel, fi nance Tuesday. The pair follow Giambattista Valli and Diane — where spending is seriously crimped. The von Furstenberg as the special guest at the women’s pre- other half is from the home trade, often made collection expo. up of small businesses that are seeing their An ad from Op’s spring campaign. Hernandez declined to specify the nature of the event, lines of credit cut back, rendering advertising although he excluded a runway show. a low-priority, controllable expense. THE PRINTED WORD: Reports of the death of Nylon “It’s going to be a surprise,” Hernandez said, add- Like many magazines, AD continues to turn to magazine’s print edition have been greatly exaggerated. ing the event would take place at an undisclosed venue additional partnerships with its advertisers, offering On Monday, online sites including Missbehavemag, on the outskirts of Florence. “All I can say is that we’re the kind of added value programs that are common for Jezebel and Gawker posted items about the indie going transport an American vibe to Florence….We’re corporate parent Condé Nast (which also owns WWD). fashion magazine replacing all subscribers’ print working on creating something really exciting that hope- The company is said to never discount off the rate card, editions with an online digital version, referencing an fully the city has not seen before but it’s not going to be even as others admit to negotiating in hard times, but e-mail sent by Nylon president Don Hellinger. In fact, a ‘show’ show.” competitors claim all the extras cut into profi tability the e-mail only went to a small number of readers who With pre-collections often generating around 80 per- anyway. Still, some of the programs, like the recent had picked up free subscriptions as a gift-with-purchase cent of seasonal sales, Hernandez said Pitti’s invitation Architectural Digest Home Design show, can offer this past holiday at Urban Outfi tters stores. The e-mail provided Proenza Schouler with a platform to reach a alternative revenue streams. offered that group the choice between a digital and wider international audience; although he ruled out de- Even though Capua said the magazine sometimes print edition via a toll-free number. “Every single paid camping permanently to Milan or Paris from New York, mixed price points in its credits — he mentioned the rather subscriber will continue to receive the print magazine,” where the label stages its runway. un-Target-like Restoration Hardware — he stressed the said Jaclynn Jarrett, publisher of the 225,000 rate base The fourth edition of Pitti W, which runs concurrently magazine won’t diverge much from its aspirational roots. title. “Every initiative we do goes back to the print with men’s fair Pitti Uomo, takes place June 16-19. “We don’t do design on a dime,” he said. “Our mission and magazine. It’s the core of our business and it’s not Also at Pitti, Hernandez and McCollough will pres- our position would become fuzzy and unclear.” going anywhere.” ent the next issue of A-magazine, which they are the fi rst Speaking of staying the course, Capua fl atly denied an Nylon last week celebrated its 10th anniversary with Americans to guest curate. item last week in the Delaney Report suggesting Condé Nast a packed shindig at the Thompson LES hotel in New “It’s almost fi nished,” Hernandez said. “We’ve been was looking to replace longtime editor Paige Rense, who York, attended by Taylor Momsen, Alexis Bledel, Ciara, working on it for the last six months.” turns 80 this year. Capua called the notion “ridiculous.” Amber Tamblyn, Kat DeLuna, Lydia Hearst and an army of Former guest curators of the biannual magazine Several media buyers and publishers said they’re seeing downtown hipsters. This May it will kick off its second include Yohji Yamamoto, Haider Ackermann, Jun an equally or more brutal second quarter, but expressed annual Nylon music tour hitting 20 cities with sponsors Takahashi, Veronique Branquinho, Kris Van Assche and cautious optimism for the second half. Melissa Gordon, PacSun and Roxy. — David Lipke Riccardo Tisci. 6 WWD, WEDNESDAY, APRIL 8, 2009

Thuy’s polyamide, paper and cotton Back to Noise’s wool coat jacket; Tigerlily’s cotton jersey tank with python collar; La Fée worn over Davidelfin’s leather shirt; By Verte’s polyester, cotton and Malene Birger’s wool pants. Alexandre rayon shirt (worn as scarf); Herchcovitch gloves; Dekkori Form’s jersey knit unitard. By legwarmers; Malandrino shoes. Malene Birger necklace (worn as belt); bracelets by Erickson Beamon and Miansai; Devi Kroell booties. aja marie johnson assistant: fashion

Vena Cava’s wool and viscose jacket; Vince’s cotton and spandex shirt; Astars’ cotton micro Modal tank; Gestuz’s cotton and elastane leggings. By Malene Birger

alexandra; vanessa evelyn/petra makeup by legwarmers and belt (worn as tie); Gretchen gloves; Dr. Martens

pitti/img; hair and boots. model: jessica Photos by Kyle Ericksen WWD, WEDNESDAY, APRIL 8, 2009 7 WWD.COM She’s Got the

LookIt’s the Eighties all over again, as amusingly lopsided proportions, quirky mixes and punk accessories evoke a new-wave attitude. — Mayte Allende

Quail’s wool blazer, pants and silk chiffon blouse. Erickson Beamon earrings; Back to Noise belts; Miansai bracelets; Robert Clergerie shoes. 8 WWD, WEDNESDAY, APRIL 8, 2009

In the Mainstream Exclusive Lines Gain Traction at Retail By Whitney Beckett The search for a moderate-price bright spot has found a ray of light: exclusive brands appear to be withstanding the test of the economy. After some rough going initially, retailers said the growing numbers of exclusive brands, including several launches last fall and this spring, are performing above plan and are among their stores’ bestsellers in an envi- ronment in which sales are struggling mightily against lower consumer spending. With the success of recent partnerships, including Tommy Hilfiger at Macy’s, Allen B. at J.C. Penney, L.E.I. at Wal-Mart and Dana Buchman at Kohl’s — compound- ed by vendors searching for ways to expand their vol- ume or simply save their businesses — merchants an- ticipate additional partnerships. “We’re getting more and more interest on the part of our vendors in terms of us taking their brands exclusive,” said Terry Lundgren, chairman, chief executive officer and president of Macy’s Inc. “It is definitely possible that we could launch one or two exclusive brands in the very near future. I would love to see a great handbag line that would be exclusive, and I would love to see more in the category of women’s apparel. These are two obvious plac- es where I believe we can have a breakthrough.” Macy’s isn’t alone. “We are having more people come talk to us, and working on a number of those things, some as early as this fall,” said J.C. Penney Co. Inc. president and chief merchandising officer Ken Hicks. The retailer is par- ticularly interested in juniors, young men’s, home and potentially men’s and women’s apparel. “There obviously is an opportunity with diffu- Tommy Hilfiger’s upgraded shop-in-shop in Macy’s. sion lines, such as I [Heart] Ronson, Allen B. and Fabulousity,” Hicks said. “But we also are seeing people who have seen their distribution shrink because of re- American Living is doing better Allen B. tailers downsizing or going out of business, and they see now that it lowered its prices, launched J.C. Penney as a survivor that would provide security to according to J.C. Penney. at Penney’s partner with.” for spring. Exclusive and private brands make up about half of Penney’s business. As the company steps up exclusive efforts, Hicks said Penney’s is “pulling back on second- ary and tertiary national brands that people don’t know and that aren’t as important.” He said some of these brands are asking to be exclusive and have offered to bring in design partners, which can make the deal de- sirable for Penney’s. “It’s good for both parties,” said retail analyst Jennifer Black. “Being exclusive allows the brand to be very focused from the company perspective, and from the consumer perspective, it creates some excitement — a reason for the consumer to go to the store.” Not all exclusives have worked. The high-profile O Oscar line at Macy’s folded last year and the introduction of American Living at Penney’s was less than impressive. “Exclusivity is important, but I would rather have the right merchandise at the right price and right style,” Hicks said. “Having the wrong stuff all by myself doesn’t help.” The theory for exclusives lines being desirable in this economy is pretty simple: On the retailer side, the com- pany can control the supply, flow and markdown of prod- uct. With inventory issues and markdown wars at top of mind, these issues seem more important than ever. “One of the challenges of the overall business today is that there is too much supply,” Lundgren said. “When deals, the vendor does fittings, color and fashion direc- launched Allen B. and I [Heart] Ronson, derivative a brand is just yours, you have supply and demand that tion, which is superior to private label, because retail- brands of A.B.S. and Charlotte Ronson. is completely aligned.” ers — because of where they are located or how they are Kohl’s, meantime, introduced Simply Vera Vera Wang On the vendor side, struggling brands can latch onto investing — often lack the creative talent.” in fall 2007, Avril Lavigne’s line Abbey Dawn for fall a partner in hopes of being saved (even downstream), Among some of the key partnerships, L.E.I. went down- 2008, took Dana Buchman exclusively into the moderate and more upscale designers can expand their volume stream to become exclusive with Wal–Mart last summer, arena for spring 2009, and will launch Mudd Apparel and distribution with a more mainstream-priced diffu- added Norma Kamali in the fall and partnered with Russell exclusively this summer. Kohl’s private and exclusive sion line that’s controlled at one retailer, which is espe- Simmons to launch American Classics this spring. brands accounted for nearly 42 percent of total sales in cially appealing as luxury is hit hard. Macy’s took Tommy Hilfiger exclusive for fall 2008, 2008, an increase of more than 2.8 percent from 2007. and it quickly became one of Belk launched Kristin Davis as a better clothing line the chain’s top-selling apparel for fall 2008, and Sears rolled out a line with LL Cool J brands. The exclusive Martha for fall 2008, which sources said got off to a rough start. One of the challenges of the overall business Stewart brand is Macy’s best As vendors approach retailers, sometimes searching “ home furnishings performer, with for a safe haven or even last resort, merchants said they today is that there is too much supply. When positive comps even in the hard- are eyeing deals carefully. hit housewares market. The ex- “The exclusive partnership has really exceeded a brand is just yours, you have supply and clusive Donald Trump business all of our expectations,” said Colleen Kelly, Tommy is doing well in all its catego- Hilfiger president of wholesale. “Our launch month in demand that is completely aligned. ­ ries (Donald Trump cuff links is September, when a lot of brands started to suffer, was Macy’s number-one volume cuff when we had all our marketing and new shops in place, — Terry Lundgren,” Macy’s Inc. link brand), and the introduction and we had an incredible month, increasing 47 percent of Lush in 40 Macy’s doors is out- in women’s and 20 percent in men’s that month,” Kelly These brands traditionally haven’t had the highest performing the retailer’s cosmetics business, Lundgren added. “In the total fall-holiday season, we were up 30 margins, but that is changing for some lines with the in- said. Exclusive or very limited distribution brands make percent in women’s and 13 percent in men’s…and the novative arrangements emerging in this market. up about 20 percent of Macy’s revenues, with private exclusive partnership helped us get there.” “Stores are signing different deals that are taking brands making up another nearly 20 percent. Tommy Hilfiger is carried in about 570 Macy’s doors more control to use their private-label companies to Penney’s launched Liz & Co in spring 2007. It then — some 100 more than it had been before the exclusive build the product themselves, which makes much higher launched American Living for spring 2008 with lack- deal. The price range was also adjusted down at the margin,” said John Henderson, a director at Net Worth luster results, Fabulousity — a derivative line of Baby launch to reflect value, retailing between $49 and $179. Solutions Inc., who worked at Kellwood Co. “In these Phat — for back-to- school in 2008, and for spring 2009 “Joining Wal-Mart, probably the biggest retailer in WWD, WEDNESDAY, APRIL 8, 2009 9 Dana WWD.COM Buchman In the Mainstream moved the world, was the right thing to do at the time with the L.E.I. downstream • Excitement: One of the biggest draws of being an exclu- brand, which had been waning in the last few years,” said and exclusive sive brand is getting preferential marketing and store place- Jack Gross, group ceo of the jeanswear division for Jones to Kohl’s this ment, which in turn creates consumer excitement. But the Apparel Group Inc., which includes L.E.I. “The proprietary spring. brand must come with that, as well. Although Darling said brand philosophy works very well because the retailer gives he thinks pure celebrity lines are becoming less important the brand much more respect, with better positioning on floor than designer lines, the designer needs to mean something and visualization.” with the customer. For example, analysts said Dana Buchman Gross added Jones Apparel is interested in more exclusive means something to Kohl’s Baby Boomer customer. partnerships. Kellwood Co. has also reported that, after the “Stores need new ideas and a live person like Vera Wang success of its Fabulousity launch at Penney’s last year, it would who can speak and help traffic the stores,” Net Worth’s be open to more retailer exclusive partnerships. Liz Claiborne Henderson said. “Those types of brands are doing much Inc., which does the derivative Liz & Co. line at Penney’s and better than the American Living brand that just stands for is licensing the Dana Buchman label to Kohl’s now, would also a direction.” like to explore more retail partnerships. But with so many moving pieces in the economy, seeking “Looking at the remarkable drop in consumer spending, to out these exclusive deals isn’t a priority to all retailers. have brands performing above plan like this is remarkable,” “ Yo u always want to differentiate your assortment in said Dave McTague, executive vice president of partnered some manner, but exclusive lines haven’t been one of our pri- brands at Liz Claiborne. “The consumer is demanding price- mary focuses right now,” said Lord & Taylor’s ceo Brendan value, and sometimes the only way you can do that is get closer Hoffman. “We’re more concerned with editing an assortment and closer as partners and decide who’s better at what parts of for a particular location and giving our customer a unique the supply change.” shopping experience that she couldn’t get elsewhere, even if The level of commitment is higher because the stakes are she could get the same product. We don’t have the advantage higher. If a brand commits exclusively to a retailer and doesn’t of being the biggest guy out there, so we have to find other succeed, it has no backup channels of distribution. ways of taking advantage of our size.” Retailers agree there are five elements that make the differ- ence between a success or a flop: • Price: Exclusive brands at a retailer still need to fall within the retailer’s price range, even if the product has more per- ceived status. “There’s no great premium to any brand today,” THE EDGE YOU NEED said Rick Darling, president of Li & Fung USA, which makes FRESHNESS • TREND • VITAL ENERGY many of the retailer exclusive brands both itself and through Regatta. “People used to talk about how much over the sweet spot a customer would pay be- F/09 NYC cause it’s a special brand, but Over 2,200 juried lines of accessories and apparel the reality today is that people aren’t willing to go above what they can afford.” An example is American Living. After the brand got off to a start that didn’t meet the much-hyped expectations (as MAY 35, 2009 the first of Polo Ralph Lauren Corp.’s Global Brand Concepts JAVITS CENTER MANHATTAN division ventures), the company adjusted the prices down, which Penney’s Hicks said has im- proved the sell-through. • Filling white space: Li & Fung first identifies a white space before targeting a prop- erty, Darling said. “We first ask where is there a particular re- tailer need, then we ask what is the appropriate property to fill it.” Li & Fung’s Regatta pro- duces the Kristin Davis line for Belk, for example. Belk Inc. president and chief merchandis- ing officer McKay Belk said the line was outperforming the rest of the store’s better-priced of- ferings partly because it offered more modernity and newness than lines the store was other- wise buying. “We do product differentia- tion not for the sake of just hav- ing product different, but to fill a void in our market place,” said Tony Buccina, vice chairman and president of merchandis- ing at The Bon-Ton Stores Inc., adding that Evan Picone was the company’s star exclusive brand. • Delivering design: The main- stream customer is more aware than ever of designer names, and is looking for that level of style delivered at a price. “Why would you give your brand to a store?” said Bud Konheim, ceo of Nicole Miller, Attend: 8666966020 which has an exclusive diffusion Exhibit: 2126864412 line at Penney’s. “The original reason is they don’t want to have price competition, but that’s such accessoriestheshow.com an old reason, it’s already be- modamanhattan.com come predictable. The thing right now is the design. The value of fameshows.com exclusive brands is the design el- ement that keeps the store look- ing individual. The point of the exclusive brand is to make them think of the destination store.” Properties of Business Journals, Inc. 10 WWD, WEDNESDAY, APRIL 8, 2009 WWD.COM Exec Tech Web: Luxury’s Antidote to the Economy Bits & WWD: What topics do you cover? Bytes J.G.: Art, fashion, luxury and lifestyle. — C.T.C. I’m looking for things that are setting standards and people who are doing things differently. Adam Kimmel is a great up-and-coming men’s wear designer who took a great approach ▲ to getting attention without doing a SILVER SLIVER show. His look book includes Ryan The ultrathin Dell Adamo McGinley and they shot a great video whispers luxury with a quiet of skateboarders. and cool solid-state hard drive, a chassis created from WWD: You like Twitter? a single piece of aluminum J.G.: I’m obsessed with it, absolutely and a high-defi nition edge- obsessed. Ceo’s are very sound- to-edge display. Starts at bite- and headline-focused, so $1,999 in pearl or onyx. Twitter is great. I follow about 37 people, including WWD, friends and others. Last night I was at an event and Björk arrived and I typed “Björk just arrived and we love her.” It’s fun and it immediately posts through to our Web site, too. It makes the whole thing feel more

multidimensional and modern. ▲ UNIQUE BOUTIQUE WWD: Have you noticed any change The U*tique in the e-commerce world since the vending machine JAMES GARDNER fi nancial meltdown? at Fred Segal INTERACTIVE AGENCY CREATETHE J.G.: Yes. Now e-commerce is a top priority of almost all the brands dispenses grown- group has a roster of clients that includes and ceo’s we’re working with. It’s seen as a channel that helps them up treats from Q Balenciaga, Burberry, Gucci, Marc Jacobs weather this storm. People right now are more comfortable shopping Vosges Haut- and Stella McCartney. The agency is online than in the store. It doesn’t feel right to go to Bergdorf’s and Chocolat, Bliss, on the cutting edge with projects that be seen leaving with bags. Growth has slowed, but it’s still growing. Lipstick Queen combine e-commerce and social features, It’s a huge priority for our clients. Either they already have it and and doll designer and recently has been busy with sites they’re really focused on how to increase traffi c and conversion rates Ketty Sean, for St. John, Dunhill, Calvin Klein Jeans and aggressively push the channel, or when they do not have it, they among others. and CKA One. As the fi rm turns fi ve years old, chief executive are putting a plan in place to implement it very quickly. offi cer James Gardner, who blogs at jamesgardner.tumblr.com, spoke with WWD about social media and e-commerce during WWD: Is Marc Jacobs planning to do e-commerce? the downturn. J.G.: No comment right now. — Cate T. Corcoran WWD: Who is positioned to do well and what should retailers be WWD: Why the blog? doing? James Gardner: I personally have not embraced Facebook or J.G.: The brands that are positioned to do well are those that have IN 2009, U.S. ONLINE Linkedin, but we’re doing a huge secret project, and I had to sort e-commerce and have fl exibility to evolve. Retailers should focus RETAIL WILL INCREASE of immerse myself into it. And this new wave of microblogging on driving traffi c and keeping the site dynamic and engaging. It 11 PERCENT TO — Twitter and Tumblr — really appealed to me because you’re needs to create desire and demand more than ever. The client publishing but you’re not asking for comments. I sort of don’t care needs to be romanced because the client is saying ‘I have the what you think. The other thing I like about it is it’s bringing many money but I’m not spending.’ Brands that focus on having of the elements we preach together. We shot this little video of e-commerce, and that have an experience online that is driving $156 the two of us [Gardner and co-founder and chief creative offi cer commerce, are in the best position to succeed. Tony King] playing around. This is the sort of thing we preach to billion clients: To get an emotional connection, it doesn’t have to be so WWD: Has anyone cut their e-commerce budget? curated and art directed. People respond to this kind of thing. J.G.: I think some have cut their marketing budget.

WWD: Do you post all the content yourself? WWD: eLuxury is no longer doing e-commerce. J.G.: Yes. J.G.: I can’t comment on that right now. — Forrester Research Inc. WWD: How much time does it take? WWD: Is there anything else you’d like to add? J.G.: Probably 10 minutes here and there, maybe up to half an J.G.: We’re in the best environment for everyone to be more hour a day. innovative. It’s a challenging but a very exciting time.

▲ BRIGHT SOUND Light-emitting diodes on the neck of the $899 St. John Opens Internet Store Fretlight FG-451 Pro Electric in Translucent ST. JOHN PLANS TO LAUNCH ITS FIRST ONLINE STORE product categories. Designed by interactive agency Blue show beginners today, which will be followed in a few weeks by an innova- Createthe group (see related story, this page), the site in- where to place their tive online community, similar to Facebook, for aficiona- cludes the agency’s signature large-scale photos and abil- fi ngers. The guitar dos of the knitwear brand. ity to see details in lifelike high defi nition. syncs with a video The online store will showcase the full breadth of the In September, McMahon predicted the online store via a USB port on a St. John world, including fragrances, accessories, the new would eventually account for 10 to 20 percent of St. John’s computer. Caviar knitwear collection and the contemporary line, total revenue, bringing in about $20 million annually. SoCa, which targets a younger customer. — C.T.C. An interim version of the site showcasing the new de- sign was already online Tuesday, although sales transac- tions were still being handled by Neiman Marcus. ▲ The design and photographs emphasize a clean, pared- TECH DIY down look that telegraphs the Southern California life- Designer Diana style with plenty of white, water and bright sunshine. Eng of “Project “There was a demand to modernize our site,” St. John Runway” fame chief executive offi cer Glenn McMahon said last year inspires with when describing the planned changes. a gallery of The online store is part of an overall effort to up- tech-fashion date and rebrand the Irvine, Calif.-based company since creations and McMahon took over in September 2007 from Richard easy projects Cohen, who stumbled when his strategy to lure younger such as felt customers with a new fi t met resistance from loyal and fl ower bud mature clientele. earphones in The site includes the St. John magazine, corporate “Fashion Geek” information, videos of the company’s runway shows, the from North forthcoming customer community and all the St. John ▲ The St. John homepage on Tuesday. Light Books. WWD, WEDNESDAY, APRIL 8, 2009 11 WWD.COM Ronald Van der Vis Succeeding Fashion Industry to Aid Italy’s Quake Victims Heinz Krogner as CEO at Esprit By Alessandra Ilari andrea perrone, brioni’s co-chief executive officer. FOLLOWING specuLatION abOut Its Fu- “unfortunately the entire area is still experiencing… ture management structure, esprit Holding Ltd. aMID a MOuNtING DeatH tOLL aND aFteRsHOcKs shocks.” said tuesday Ronald Van der Vis, chief executive in Italy’s earthquake-ravaged abruzzo region on tuesday, perrone said the company was “deeply” linked to the officer of optical retailer pearle europe, will re- the fashion industry began pitching in for the relief effort. region, the local institutions and the people. place Heinz Krogner as ceo. Gucci said it was among the companies donating funds, “We will provide extra support following this tragedy, before moving into the corner office, Van der along with designer anna Molinari. Versace said it is pre- which has affected so many people in the region,” he Vis, 41, will take on the role of executive direc- paring a strategy to assist the victims in an “organic way,” said. “We are part of the abruzzo [region] and are directly tor on June 22 and then succeed current group and brioni also pledged to help. involved and shocked in what has happened, it will take ceo Heinz Krogner by November. Krogner, 67, Valentino and Giancarlo Giammetti said they were in time to reestablish ordinary life.” will stay on as executive chairman until at least “terrible anguish.” the earthquake on Monday was the most severe in December 2010. prime Minister silvio berlusconi, who toured abruzzo Italy since a 6.9-magnitude quake hit eboli, south of In his first year, Van der Vis will receive an an- on tuesday, said the government had allocated an initial Naples, in 1980. More than 2,700 people were killed. nual salary of 1.5 million euros, or $2 million at 30 million euros, or $40 million, to assist victims of the 6.3 — With contributions from Emilie Marsh current exchange, and a guaranteed bonus of 1 magnitude temblor that million euros, or $1.3 million, esprit said. struck the mountainous Officials said about Krogner said Van der Vis, who has been ceo of area about 60 miles north- 17,000 people were pearle europe since 2004, was chosen for the top east of Rome on Monday. left homeless from job at esprit because of his retail experience. Rescuers struggled the earthquake. “since over 50 percent of esprit’s sales are to find survivors in the based on wholesales to independent stores, it rubble and the number of is important that esprit is headed by a ceo who dead increased to more understands the requirements of our retail part- than 200. an estimated ners,” Krogner said. 1,500 people were in- Last week, the Hong Kong-based brand ap- jured. Officials said about pointed John Gunn as president of esprit North 17,000 people were left and south america. homeless. Hampered by the economic slowdown, the re- aftershocks, some tailer said in February its profit contracted 13.4 reaching 4.2 magnitude, percent in the first half of the year despite a 2.9 spread anxiety and were percent increase in sales to 19.06 billion Hong Kong felt as far away as Rome. dollars, or $2.45 billion at average exchange. esprit Luxury label brioni, also said it was scaling back expansion plans, located 62 miles from the opening around 180 stores this year, down from the earthquake’s epicenter in planned 275 stores. It opened its first stand-alone L’ aquila, was rattled by West coast store, a 4,500-square-foot unit in santa the tremors. Monica, calif., last month after more than a decade- “there were no dam- long absence from the region of its birth. ages but following in- at the end of 2008, esprit operated 774 stores structions by local au- and its products were carried at 15,150 points of thorities all the brioni sale through its wholesale business. buildings were tested — Alexandra Steigrad and Damien McGuinness [Monday] morning,” said biAnchi/reuters/lAndov AlessAndro by Photo

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12 WWD, wednesday, april 8, 2009 WWD.COM Marketing The High Stakes of Repackaging Premium Spending With kitchen table conversations about By Cecily Hall what kinds of purchases can be put off, “people are [getting] tired of denying themselves,” Package and logo redesign is a slippery slope said Michael Silverstein, a senior partner at for a brand when consumers are struggling in a troubled fi- The Boston Consulting Group. Food accounts nancial environment. for three of 10 favorite trade ups to premium “In this economic climate, the old saw is turned on its head: goods as consumers with tight finances eat familiarity breeds contentment, and unfamiliarity breeds con- more meals at home. tempt,” said Stephen Doyle, creative director of Doyle Partners, Apparel failed to make the top 10 because so a New York-based graphic design studio devoted to branding, many people “acquired lots of it between 2002 packaging and marketing communications. and 2007,” Silverstein said. But he anticipates Exhibit A is Tropicana Pure Premium orange juice, which is change ahead. “The big inventory of unworn reverting to its longtime symbol of a straw stuck into an orange clothes at home is running down,” he said. on its containers because of negative customer response to the “Innovation technically and functionally — like new image of a glass of orange juice, introduced in January, wrinkle-free material, improved fit and comfort — which was intended to symbolize freshness. could spur purchases.” Stability, reassurance and core images are among the fun- — Valerie Seckler damentals that brands need to convey against the backdrop of economic volatility. “When the world as we know it has turned to quicksand, the last thing people want is to have the things they thought of as dependable change,” Doyle said. “Tropicana ultimately was a bust because it lost its authenticity. It became an ordinary glass of juice, instead of an illustration of freshness. And which OJ drinkers want to turn their heads sideways to read a generi- Tropicana, which attempted a redesign (at right) earlier this year cized version of a logo that they used to trust?” is reverting to its original packaging (at left). That doesn’t mean there isn’t a potential upside to change. Another PepsiCo-owned brand, Pepsi-Cola, also has been re- author of “Buy-ology: Truth and Lies About What We Buy” designed but to a far different reception. The new logo is a (Doubleday), said maintaining a comfort zone is important. modification of the old and not a complete revamp. The logo One of his recession survival tips suggests that brands retains its red, white and blue stripes, but the white resem- “spend the money on making your marketing communications bles a half-smile, and the “Pepsi” lettering is presented in a advertisements appeal to more than one of the senses” rather lighter typeface. than focusing on a splashy new logo. Pepsi also revealed last month it is introducing a premium, “We are stressed as consumers right now,” he said. “When 1. Personal computers all-natural cola (made with all-natural sugar instead of high we are stressed, we turn to things that make us feel safe. fructose corn syrup), called Pepsi Natural, in 10 markets this When the brands that we use every day suddenly change in 2. Fresh fruits and month, and it plans to roll out throwback versions of Pepsi the middle of a recession, they’re changing what is safe, what vegetables and Mountain Dew this month for eight weeks. The colas will is comfortable for us.” have Sixties- and Seventies-inspired retro packaging and will If a brand is intent on changing its look, the process must 3. Bedding have a distinctly different flavor than the current beverages. be gradual. “It’s critical right now for brands to stay steady,” Snapple (a streamlined bottle with a label emphasizing tea Lindstrom said. “If a brand desires change, it can incorporate 4. Meat leaves) and Heinz Ketchup (an image of a tomato growing on old values and looks that the brand was founded upon. That 5. Home entertainment a vine replacing the pickle) also have recently keeps its authenticity.” tweaked their trademark images. Doyle agreed, and cautioned that al- 6. Cars “The Pepsi rebranding is incredibly am- though redesign during a recession is pos- bitious, and luckily for them it turned out to sible, “the trick is to make the redesigned 7. Sit-down restaurants be very much in step with the times — basic package or logo masquerade as a more thor- and honest,” said Evan Gaffney, principal ough expression of what the old version of- 8. Kitchen appliances of Evan Gaffney Design. “The new logo fered.” In other words, don’t abandon your 9. Washers and dryers makes Pepsi look responsive, which is entire look so much that consumers will no exactly what consumers now expect longer recognize your products. 10. Fish and seafood from corporations, no matter the size. Gaffney, however, contended “bold Also, the type is a custom font that is ex- moves” are necessary in a time of crisis. pertly drawn, sober and reassuring.” “Consumers are buying less, but they Doyle agreed. “Pepsi has done a gor- Pepsi’s redesign are paying far more attention to how com- geous job of an update, and it has fol- remains in stores and panies operate and present themselves,” lowed other category leaders by strip- has garnered more he said. “They’re interested in the business ping all the extraneous ‘noise’ from the positive reviews. of doing business, the race to survive…. package.” Who will win this elimination round and If “basic” and “honest” are linchpin why? Consumers want to be inspired by companies weath- qualities for consumers, should brands ering the economic storm with innovation and agility. Now stick with the familiar? would be the time for a major auto company to reposition it- Martin Lindstrom, a marketing ex- self, for example — to speak clearly during a quiet economy Source: The Boston Consulting Group, February 2009, “Trading Up pert and branding strategist who is the and to an audience that’s hungry for a good comeback story.” and Down Around the World,” an online survey in 16 countries. BRAG Takes ‘Dollars and Sense’ Approach to Diversity By Dick Silverman lives regarding service and community, which is exactly in 2000, and is projected to reach $1.2 trillion in 2013. what BRAG’s mission and purpose is: service and com- “Our mission is to narrow the gap between the num- Renewing the push for diversity, Gary L. munity,” he said. ber of consumers of apparel and related products and Lampley, president of the Black Retail Action Group “I think such a moment has now occurred, and it is the disproportionate number of African-Americans in (BRAG), is encouraging African-American consumers to time to encourage the fashion industry to address the executive positions or with major presence in retail buy from firms that support minority workers, use need for diversity and inclusion,” Lampley added. stores, ad campaigns and runways,” Lampley said. them in marketing and advertising campaigns “We know this work cannot be done alone and A former retail executive and stylist, Lampley be- and promote them to senior management. we welcome industry partnership.” came BRAG president in April 2008 and has been with It makes good “dollars and sense” for Despite progress, minorities face obsta- the organization more than 20 years. He said minority retailers and brands to bolster hiring and cles in entering the fashion industry and consumers could ensure companies respond to them by awareness of minority customers in the reaching management positions, he said. “voting with their dollars.The market is growing rapid- recession and “address their needs in a Although people of color in other indus- ly, and it’s thirsty for product and communication that bigger and better way,” Lampley said. tries have already achieved success, re- speaks to them.” “Diversity is even more important tailing and fashion have lagged, Lampley BRAG intends to put more effort into programs like in these tough economic times,” he said, adding that his observations were its job bank, launching in the second quarter of this said. “Multiculturalism and diversity based on anecdotal information. year, and summer internship program. The internship have been buzzwords for many years BRAG, a nonprofit organization found- initiative for college juniors and seniors is a pet project but these words have been treated like a ed in 1970, has sought to boost minority for Lampley, who has been an adjunct assistant profes- fad. Seeking better ways to service African- participation and job promotion. It plans sor in the fashion merchandising management depart- Americans and all people of color should be a to release a “Black Paper” report this month, ment at the Fashion Institute of Technology. strategic priority for business leaders.” Gary L. Lampley with more specific statistical data, on the needs The job bank will enable companies to list available The ascension of President Barack Obama of minorities in the industry, he said. positions or openings on the BRAG Web site, which mem- and First Lady Michelle Obama has heightened the ur- The purchasing power of African Americans, as well as bers will be able to access and submit applications. gency for multicultural advances in the fashion industry, those of other minorities, is rising, according to the Selig Companies participating in the internship initia- Lampley said. Center For Economic Growth at the University of Georgia’s tive include Macy’s Merchandising Group, Saks Fifth “Every once in a while a moment occurs in history Terry College of Business. African Americans’ buying Avenue, Coach, Phillips Van-Heusen, Foot Locker, Wal- that has a lasting impact on how individuals view their power was $913 billion in 2008, compared with $590 billion Mart and Barneys New York. WWD, wednesday, april 8, 2009 13 WWD.COM WWD West Buyers Seek Fashion, Value at L.A. Market By Anne Riley-Katz and Khanh T.L. Tran As skinny jeans have become staples Sovereign top; in teenagers’ closets, junior companies LOS ANGELES — Recession-weary retailers struggled with slashed Be Seduced are pushing the envelope for how nar- buying budgets and shrinking inventories as they sought on-trend vest; Denim of row the denim legs can go. pieces at value prices during the Majors Market here. Virtue jeans. Chinese Laundry, which is owned The trade show ran Sunday through Tuesday at the by El Monte, Calif.-based Vibes Base California Market Center. Enterprises, evolved its skinny style Buyers from chains like Hot Topic Inc., J.C. Penney Co. into a legginglike version that features Inc., Kohl’s Corp., Macy’s Inc., Nordstrom Inc., Ross Stores an 11-inch leg opening and is missing a Inc. and The Wet Seal Inc. trolled the center’s showrooms back yoke for a slimmer fit. Sanding and looking for strong combinations of fashion and value. big zipper trim on the front pockets com- “We’re paying very close attention to what’s going on plete the look, wholesaling for $18.50. on the sales floor right now,” said Stacy Heric, a buyer For Chinese Laundry’s sister brand, for Nordstrom Rack. “Like everybody we’re keeping Sweet Vibes, which appeals to a multi- inventory tight and are budget conscious, like our cultural customer with a fuller silhou- consumers.” ette, skinny jeans are equally important. The economic downturn had a clear toll on busi- Sweet Vibes opts for 12- and 13.5-inch ness, with traffic at the market slower than usual. leg openings and uses more stretchy “The scary part is that nobody is being factored denim — instead of the mercerized cot- anymore,” Pegah Gholian, who has a T-shirt whole- ton that Chinese Laundry uses — for its saling business out of the Pink Ribbon showroom. jeans wholesaling for $15 and $16. “TJ Maxx and Ross are the only ones being approved “The skinny business has been very for credit right now. For anyone else you just cross strong,” said Steve Hagstrom, a vice your fingers and pray. It’s either that or have unsold president at Chinese Laundry, noting merchandise you can’t move.” skinny jeans make up 60 percent of the Retail consulting powerhouse Directives West saw business for both Chinese Laundry and fewer clients this market than last, and scaled back Sweet Vibes. and shortened its client fashion show Monday to be Dresses continue to sell for junior less flashy, using less lighting and fewer models. labels, with the maxidress garnering “All our clients have cut back, they don’t need the most attention. Raviya offered $16 to buy as much because the consumers are not halter dresses, enhanced by a paisley buying nearly as much these days,” said Janine print or tie-dyed tiers, with hems graz- Blain, Directives West vice president. “It’s all about what’s ap- ing the floor. Delicia blended prints propriate now, we’re trying to be sensitive to retailers in the cur- of feathers and geometric shapes on a rent climate.” polyester chiffon dress wholesaling for Outdoorsy prints like plaids, flannels and buffalo check were between $21 and $23.

among the leading styles at the market, along with skinny jeans and SARDELLA At Passport, however, the tunic took maxidresses. Fleurish tunic; precedence over the dress, as its cus-

Buyer Sandra Long from Wet Seal cited trends in tribal prints Celebrity Pink DONATO tomers prefer to wear the tunic over and materials, color-blocked styles for dresses and tunics and denim jacket; BY leggings. One tunic, wholesaling for rocker or club looks, which were also popular with other juniors- Speechless vest. $9.50, is cut out of plaid fabric updated

oriented retailers. PHOTOS with a caustic wash and ruffles. “Dresses are big. We’re looking for some boyfriend styles, too, Like their counterparts in the junior and definitely plaids,” said Julia Lee, a buyer for Papaya stores. and contemporary categories, vendors in the missy market also emphasized novelty, B. Bronson, a firm that specializes in buying branded off-price as exhibited in details such as ruffles, Lurex, animal prints and ruching. apparel and reselling to discount-oriented retail chains, looked to Sisters highlighted an animal print cardigan wholesaling for $29, while Simply capitalize on the downturn but said competition for bargain merchan- Irresistible offered a polyester charmeuse blouse in washed plaid with a ruffled bib dise is getting much tougher. for less than $18. Essex garnered interest from retailers with a $34 black tank dress “There’s opportunity for us to pick up merchandise as businesses highlighted by leopard-print panels, and also with a $16 shrug that customers in their cancel orders, but it’s a double-edged sword,” said Jerry Michaels, a 40s and 50s could don to cover up their arms. Solé by Morningstar opted for pearls buyer for the Vernon, Calif.-based company. “Some manufacturers only and sequins to accentuate stretch lace dresses wholesaling from $59 to $79. Carducci cut to order now, and some retailers who would have in the past taken an maximized trends in a $39 acrylic-wool intarsia cardigan that combined a shawl neck, entire lot are picking the very best out and leaving the rest behind.” kimono sleeves, shell buttons and novel yarns that faded from purple to black. One bright spot was denim sales in the junior market. And novelty, along with a Even with the emphasis on novelty, missy brands said price remained paramount bargain price, plays a big role in luring teenaged shoppers. for their customers, who usually range in age between 30 and 60. Yom Yom achieved a marbleized effect on black-and-white jeans wholesaling from “They want a contemporary look at a price point,” said Yvette Perez, an account $14 to $22. executive at Carducci.

A look from Twen-tee’s Execs Partner in Knits Label Launch summer collection. Executives from knitwear stal- company shipped more than $500,000 Cytrynbaum said twen-tee, which wart Three Dots and Canadian textile worth of product in its first month to has a U.S. office in Newport Beach, and apparel manufacturer Majestic Mills 100 retailers, including Intermix, Holt Calif., can find a niche targeting cus- have launched a contemporary knits Renfrew, Nordstrom, Henri Bendel and tomers who like to shop designer la- label, twen-tee, which marries plush pro- Fred Segal Couture. Twen-tee will begin bels but also mind their budgets. prietary fabrics with retail prices averag- distribution in Germany, Switzerland “Twen-tee is more like Rick ing $80. and Austria this fall. Owens at half the price,” Cytrynbaum “It’s not business as usual,” said “We took everything we knew from the said. “It’s more designeresque. It’s David Lazar, an alumnus of Searle and scalability and knowledge of what has re- much finer yarn that anyone else can Express who left his position as execu- tailed and not retailed in garment-dyed spin for those different brands.” tive vice president at Three Dots last T-shirts,” Lazar said. “We leveraged that Twen-tee’s yarns range from a July to introduce twen-tee for the cur- for the premium contemporary market.” Supima cotton-cashmere blend in rent spring season. “There’s no space, Like many apparel categories, the rib and jersey to a viscose-Lycra jer- and the customer has no appetite. She’s T-shirt market faces challenges in a sey to linen jersey and Supima cot- already full. She wants the next thing.” worsening economy. While labels such ton mixed with milk extract. Lazar is partners with Brian as Mblem by Mandy Moore are closing, So far, its standout offering has Cytrynbaum, a principal in Montreal- newcomers, including T by Alexander been the Supima cotton-cashmere based Majestic Mills, which finances Wang, attempt to secure a foothold in blend, which is knitted into a soft, California-based twen-tee through its a market dominated by brands ranging sheer cloth barely felt on the skin. private equity arm. After spinning and from American Apparel and Michael Dyed light gray, the fabric drapes the knitting the yarn procured through Stars to Splendid and Three Dots. shoulders as an open cardigan with European mills, Majestic Mills dyes, cuts Responding to the cut-and-sew knit an asymmetrical hem. Retailing for and sews the products at its factory in market’s saturation, the established $98, the cardigan is one of twen-tee’s Canada, where it can import some mate- brands have branched into new catego- priciest items. Other items made of rials from Europe without paying duty. ries, such as button-down woven shirts the same yarn include a $70 fitted With sales last year totaling 170 mil- at American Apparel and cashmere tank in carnation pink and a $98 lion euros, or $250.1 million at the aver- sweaters at Michael Stars. Three Dots re- double-layer long-sleeve T that is age exchange rate, Majestic also holds cently hired Los Angeles designer Pegah gray on the bottom and black on top. BOYE stakes in 18 other apparel brands, in- Anvarian to help transition the knits For fall, twen-tee will introduce cluding Earnest Sewn and K-Way. brand into contemporary sportswear with its first bottom — a legging knit from Although Lazar declined to forecast the addition of jackets and capes cut in high-twist nylon Lycra. twen-tee’s first-year sales, he said the novel fabrics such as a stretchy tweed. — K.T.L.T. TYLER PHOTO BY 14 WWD, wednesday, april 8, 2009 WWD.COM Financial For full daily stock changes, see WWD.com.

Liz Stock Up Despite Debt Downgrade 10 Best Performers By Evan Clark Shares of Claiborne closed at $3.26 Tuesday. The issue’s traded as high as DAILY COMPANIES P/E Volume Amt Shares of Liz Claiborne Inc. $20.14 and as low as $1.46 over the last rose 6.2 percent Tuesday despite a debt year. High Low Last %Change downgrade. Another stock that zigged when some The company outperformed the over- would have expected a zag Tuesday was all market, which lost ground as inves- The TJX Cos. Inc. The off-price giant 0.13 0.10 NexCen (NEXC) - 249249 0.125 25.00 tors braced for first-quarter earnings said it would increase its quarterly reports. stock dividend by 9 percent to 12 cents a 3.54 3.08 American Apparel (APP) 15.5 672770 3.40 9.68 Moody’s Investors Service lowered share. The dividend is payable on June 4 its corporate family credit rating for to shareholders of record as of May 14. Claiborne to “Ba3” from “Ba1,” and Still, shares of the firm dipped 0.7 1.25 0.97 General Growth (GGP) 9.7 25455968 1.05 8.25 its grade on $350 million in senior percent to $25.75. Over the past year, the unsecured notes to “B2” from “Ba2.” stock has traded as high as $37.52 and as 3.38 2.99 Liz Claiborne (LIZ) - 2432357 3.26 6.19 Ratings in the “Ba” category are low as $17.80. deemed to have “substantial credit “Even in a difficult economic envi- 0.92 0.83 Parlux Fragrances (PARL) - 86457 0.90 5.88 risk,” while those one grouping down ronment, our substantial operating cash in the “B” category have “high credit flows combined with our strong balance 0.57 0.55 Frederick’s of Hollywood (FOH) - 10278 0.57 5.56 risk,” according to Moody’s scale. The sheet allow us to return value to our rating outlook is negative. shareholders while also maintaining sig- “While the company has taken ag- nificant financial flexibility,” said Carol 0.40 0.35 Joe’s Jeans (JOEZ) 3.7 75789 0.39 5.41 gressive steps to reduce costs and im- Meyrowitz, president and chief execu- prove liquidity, it continues to face tive officer. 1.72 1.59 Delia’s (DLIA) 164.0 22901 1.72 4.88 significant challenges to improve per- Overall, it was a down day for retail. formance of its heritage wholesale The S&P Retail Index fell 3 percent, or 0.65 0.59 Aeffe * (AEF:MI) 8.6 248723 0.615 2.67 brands,” said Scott Tuhy, a vice presi- 9.15 points, to end the day at 300.85. dent and senior analyst at Moody’s. “The The broader market fared little 20.09 19.65 Unilever (UL) - 2670410 19.89 2.26 company has seen weak same-store better, with the Dow Jones Industrial sale performance of the key brands in Average falling 2.3 percent, or 186.29 its direct brand segment, such as Juicy points, to 7,789.56. It was the second Couture and Lucky Brand Jeans, due to down day in a row for the Dow, which the weak economic environment and had been on somewhat of a run with 10 Worst Performers these weak trends are expected to per- four consecutive winning days before sist well into 2009.” that. DAILY COMPANIES P/E Volume Amt Pony Sues Nike Over Campaign High Low Last %Change 4.72 3.76 Zale (ZLC) - 1271807 3.77 -20.80 Pony Inc., a sporting apparel and goods manufacturer, is suing competitor Nike Inc. over Nike’s “V is for Victory” marketing campaign. The lawsuit, filed on Friday in a federal district court in San Diego, alleges trade- 0.62 0.44 Casual Male (CMRG) - 656006 0.48 -17.24 mark infringement, trademark dilution and unfair competition. San Diego-based Pony said in court papers it has “owned the rights to its chev- 1.40 1.20 Bluefly (BFLY) - 4540 1.20 -14.89 ron marks for over 35 years.” It further said Beaverton, Ore.-based Nike’s “V is for Victory” campaign uses a chevron mark that Pony alleges is “identical or virtually 3.80 3.26 Talbots (TLB) - 501089 3.26 -14.44 identical” to those owned and registered by Pony. Pony is seeking a permanent injunction barring Nike from trademark infringe- 1.82 1.54 Glimcher (GRT) - 272924 1.56 -13.81 ment, dilution and unfair competition, monetary damages and attorneys’ fees. “We believe the case is without merit,” a Nike spokesman said. “We will defend 4.48 3.99 Brown Shoe (BWS) 5.8 673544 3.99 -13.45 ourselves vigorously.” The campaign features the letter V in a variety of ways, including its title in type and in hand signals using the index and middle fingers. 6.78 6.00 Syms (SYMS) - 10283 6.00 -12.79 — Vicki M. Young 3.36 2.94 CBL (CBL) 22.5 2892052 2.95 -12.46 Dissenting Group Wins Legal Round With UNITE HERE 1.64 1.44 Crocs (CROX) - 1719956 1.46 -12.05 39.39 35.81 Simon Properties (SPG) 21.6 11725930 35.9 -10.96 By Matthew Lynch UNITE HERE attorney Herbert Stern. “This is about the use of facilities in NEW YORK — A breakaway group won this moment. And this is an important * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on a round Tuesday in its legal fight with moment where both sides are having the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss UNITE HERE over contested assets. people choose between them.” francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. Judge George Daniels of the U.S. Workers United had argued UNITE District Court for the Southern District HERE brought much of the property at denied UNITE HERE’s request for an issue into the merger. injunction seeking to claim assets from Daniels told a courtroom filled with Gap’s Murphy Earns $9.3 Million in 2008 the group, Workers United. attorneys and retired union members, UNITE HERE is the product of a some of whom wore stickers bearing the By Evan Clark duce the portion of his compensation that 2004 merger between the former Union new Workers United logo, that he didn’t comes as salary by 15 percent to $1.3 mil- of Needletrades, Industrial & Textile believe UNITE HERE had a case for Glenn Murphy, chairman and lion, which will also trim the potential Employees, led by Bruce Raynor, an injunction and that it was too early chief executive officer of Gap Inc., re- size of his bonus. and the former Hotel Employees & in the litigation to take up questions of ceived total compensation of $9.3 million Among Gap’s other top executives, Restaurant Employees International asset distribution. in 2008, his first full year on the job. Sabrina Simmons, executive vice presi- Union, led by John Wilhelm. Workers “Injunctive relief is not appropri- According to a regulatory filing with dent and chief financial officer, saw her United formed last month and is made ate for injuries that could later be the Securities and Exchange Commission, compensation rise 69.2 percent to $2.7 up largely of disaffiliated UNITE HERE compensated in money damages,” the Murphy’s take included salary of $1.5 million, million on a 35.1 percent salary increase members who sided with Raynor and judge said. stock and option awards valued at $4 million to $675,000, and Marka Hansen, president UNITE when the factions fell into po- Edgar Romney, who was elected and non-equity incentive pay of $3 million. of Gap North America, received a 1.2 per- litical infighting this year. president of Workers United at its The ceo received other compensa- cent increase to $4.5 million as her salary Among the disputed holdings are founding convention in Philadelphia tion of $834,434, including $211,244 for remained $900,000. union buildings, including UNITE last month, said the judge “under- personal use of a company airplane and Last year, Gap’s net income rose 16 HERE’s international headquarters at stood clearly that granting [the injunc- $477,044 in expenses for his relocation to percent to $967 million, or $1.34 a diluted 275 Seventh Avenue in New York, as tion] would have put the members of California from Canada, where he was share, while sales declined 7.8 percent, well as a union-owned bank and insur- Workers United in an untenable posi- chairman and ceo of Shoppers Drug Mart to $14.53 billion, and fell 12 percent on a ance company. tion.” Corp., the country’s largest drug store same-store basis. By division, Old Navy Lawyers for Wilhelm and UNITE Pilar Weiss, a spokeswoman for chain. He joined the retailer in August North America sales declined to $5.2 bil- HERE argued the union should hold Wilhelm, said Daniels’ assertion that 2007, and received compensation of $6.3 lion from $6.2 billion in 2007, Gap North the assets to maintain the status quo, Workers United couldn’t move any as- million that year. America sales were $4.2 billion versus something they said Workers United sets without court approval gave her Stock and option awards are reported $4.5 billion and Banana Republic North had changed when it was formed in the side confidence going towards trial. based on SEC accounting guidelines. The America sales dropped to $2.4 billion middle of the litigation. They alleged “While we didn’t prevail on the injunc- compensation reported in these categories from $2.5 billion. However, increases Workers United had used the assets to tion, the judge made it very clear that was not necessarily realized because of were logged at international, to $1.7 bil- lure members away. the assets couldn’t be touched until the vesting schedules and falling share prices. lion from $1.6 billion, and in the direct “This is not only about money,” said case is heard,” she added. For 2009, Murphy volunteered to re- area, $1.03 billion from $903 million. WWD, WEDNESDAY, APRIL 8, 2009 15 WWD.COM/CLASSIFIEDS

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Innovation Demsey believes, even for known, trusted brands, is more important for companies now than it ever was. John speaks in the fi nal session that brings together the life changing experiences of some of the world’s great retail innovators to help stimulate ideas, inspire change confi dence and help put a culture of innovation back in to your business. John is joined at the World Retail Congress by over 100 speakers including Vittorio Radice, Andy Mooney and Chris Lee.

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