PHOTO BY GIOVANNI GIANNONI The Stone Age Stone The WWD in this chiclinear number. For more, seepages 6and 7. inspired dresses, giving them a decidedly modern edge, as he sparkle-trimmed hisForties-stellar collection forLanvin, approach toaseason of all-out embellishments. In his Dazzled ’em. That’s what Alber Elbaz did with his dramatic Demand LowerPrices Stores Reduce Budgets, In ‘Solid’Paris Season, roughly 10 percent across the board at a time roughly 10percentacrosstheboardatatime inthedust. — orbeleft deliver compelling fashions and terrific value said, puttingtheonusondesignervendorsto byupto30percent,sources being pruned quality andgreatdesignsforhermoney.” is kingagainanddemandingsubstance, customer director ofHenriBendel.“The said AnnWatson, vicepresidentandfashion women aretakingpriceintoconsideration,” factor tothetopoftheirbuyingagendas. while pushingsharppricingandthe“wow” fashion seasonbasedonpolishedFrench chic PARIS — By WWDStaff Accessories/Innerwear/Legwear ▲ luxury: brandsfiluxury: ght back,page8. ACCESSORIES: Some retailers estimated prices were down Some retailersestimatedpricesweredown Budgets for the fall-winter season are “It isnowapparentthatthewealthiest Women’s Newspaper Daily •March16,2009 Wear •TheRetailers’ Daily Women’s Newspaper Daily •March16,2009 Wear •TheRetailers’ Daily

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NEW YORK, 29W 57TH STREET 7TH FLOOR, NEW YORK, N.Y. 10019 N.Y. YORK, NEW 29W 57TH STREET 7TH FLOOR, YORK, NEW Retailers praised a safe-but-solid Paris season based on polished chic, 1 pushing sharp pricing and the wow factor to the top of their agendas. 8 JEWELRY: as economic reality sinks deeper into consumer psyche, the luxury concept has gone from a badge of honor to a private indulgence. 11 ACCESSORIES: Mirroring declines at trade fairs across Europe, foreign visitors to Premiere Classe dropped 15 percent from last year.

PAL ZILERI SHOWROOM ZILERI SHOWROOM PAL 12 INNERWEAR: naP inc., a once-thriving $100 million sleepwear specialist, has faded from the scene amid financial problems. 14 h&M’s first Russian store opened Friday in Moscow with a scrum for discount coupons and lines of 30 people clogging changing rooms. 15 a deepening global recession drove down textile and apparel imports to WWW.PALZILERI.COM the U.S. in January to the lowest level in that month in five years. 16 FINANCIAL: Declining market capitalizations, a reflection of the fall in stock prices, are wreaking havoc on company earnings and financing. Classified advertisements...... 19 To e-mail reporTers and ediTors aT WWd, The address is [email protected], using The individual’s name. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 197, NO. 56. 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QUOTE has to go out • L’Oréal Toronto Fashion Week the window to come back (through Friday). TUESDAY: The U.S. Labor Department through the door. releases the Producer Price Index for February. — karl Lagerfeld, criticizing” the wealthy’s new • Guess Inc. reports fourth-quarter stinginess toward luxury in this economy. Page 8. and year-end sales and earnings. Progetto2:Layout 1 10-03-2009 15:58 Pagina 1 FROM THE EDITORS WEDNESDAY: Filo, Milan (through Thursday). • Interstoff Asia Essential, Hong Kong TODAY MARKS THE PREMIERE ISSUE OF (through Friday). WWDMen’s Collections, covering the men’s designer • The Labor Department releases the market and runway collections from New York, Milan Consumer Price Index for February. and Paris, as well as key American trade shows for • Benetton Group SpA and Charming fall. It is a brother publication to the semiannual Shoppes Inc. report fourth-quarter WWDCollections mag- and year-end sales and earnings. 3569_Gitman_Bros_Roadblock_CAD_01.indd 1 3/9/09 3:27:12 PM azine, which covers • Nike Inc. reports third-quarter the women’s ready-to- sales and earnings. wear runway seasons. Using the global THURSDAY: New York & Company Inc., resources of WWD, Perry Ellis International Inc., Ross the twice-yearly Stores Inc. and Stein Mart Inc. report WWDMen’s Collections fourth-quarter and year-end sales will provide exclusive and earnings. interviews with key de- signers and backstage FRIDAY: Designers & Agents, Los Angeles access at the season’s (through Sunday). hottest shows. Plus, it • Brighte Cos., Los Angeles will showcase signifi- (through March 23). cant trends and offer • Los Angeles Fashion Market and the an insider’s guide to New Mart Women’s Fall Apparel Market the season. (through March 24).

Balenciaga, • Trend: Fall RTW contrast sleeves TODAY ON fall 2009. • The full fall season, with all reviews, images, Fashion

Giannoni Scoops and more from New York, London, Milan and Paris

Giovanni • More images of Paris www.bresciani.it WWD by accessories trends .com Photo • Global breaking news Rightmillions now of women are talking about the brands they love. Shouldn’t they be talking about yours?

WORD OF MOM™, PASS IT ON 4 WWD, MONDAY, MARCH 16, 2009 Retailers Praise Paris’ Pizzazz, With Caveats Continued from page one Carla Sozzani, owner, Corso Como 10, Milan: “I thought Comme Rochas, which had great late-day and dinner dressing. when steep discounts are needed to coax spending. “Many des Garçons was fantastic, and I liked Balenciaga very The shoulder continues to be an important story, not as houses are focused on price and trying to deliver great much. There’s so much of the Eighties and I’m not a aggressive as in Milan — a little more Forties. Leather quality at a price: not trading down. That’ll be encouraging fan of the Eighties, especially when it’s literal, but at is so important, and jade green is looking really fresh. for the customer to shop. It’s an important strategy,” said Balenciaga, for example, you find really great clothes. It’s nice to see the continuation of all this big, shiny gold Ken Downing, senior vice president and fashion direc- Azzedine Alaïa was also very good. Of course, he was big costume jewelry, as it’s a real bright spot at retail.” tor at Neiman Marcus. “Where the product is right, we’re in the Eighties, but he moved it forward.” there. When it’s not, it won’t be in our stores.” Colleen Sherin, fashion market director, Saks Fifth Avenue: “The Collections garnering wide praise from retailers in- Polina Kitsenko, co-owner, Podium, Moscow: “Everyone was key message in Paris was one of polished Parisian chic cluded Lanvin, Balenciaga, Givenchy, Dries Van Noten, pretty concerned that the economic situation would with a powerful edge: The idea of sculpted tailoring and Yves Saint Laurent, Alexander McQueen and Haider bring down the mood of designers and influence their a return to investment dressing in terms of beautiful Ackermann, while Eighties- and Forties-style dresses, creativity. This did not happen. The shows I liked were fabrications, double-faced cashmere and flannel, leath- leather leggings, strong-shouldered jackets and sweater Rick Owens, Givenchy, Junya Watanabe, Nina Ricci, ers and furs. Paris redefined the idea of a suit — a skirt coats were cited among key items. Chanel and Balmain. General trends were Eighties and suit, a pantsuit or taking the jacket as a separate item. Shortcomings in Paris included a preponderance of men’s tailoring for women. We [sometimes] cut bud- There’s a return to the jacket, the newness is the em- black and gray clothes, and a dearth of fashion jewelry, gets, mainly depending on the quality of the collection. phasis on the strong shoulder, beautiful coats and outer- a hot category at retail. We have been buying fur more cautiously during the wear, the importance of leather, especially black leather “We are focusing on core brands that can still give last two winters as a result of global warming, even in throughout and fur. There are two distinct pant silhou- us excitement and have the desirability for a customer Russia. We have seen lots of padded shoulders, leather ettes: still skinny pants and leggings, but also beautiful to want to buy,” said Sarah Rutson, fashion director at in jackets and pants, leather combined with fabrics, draped or fluid pants at Balenciaga, Dries Van Noten, Hong Kong’s Lane Crawford, citing Givenchy, Lanvin biker jackets, slouchy pants, drop-crotch pants, pleats, Yves Saint Laurent and Dior.” Other notable collections and Balenciaga as examples. “I have to feel like, ‘I’ve thick knits, bouclé wool, flannels, jersey drapes, boleros. were Lanvin, Chanel, Givenchy, Ann Demeulemeester, got to have this’ in order to buy. It’s solely about desire; And for shoes, pinup heels, platforms and thigh boots.” Chanel, Alexander McQueen, Martin Grant and Chloé. it’s not about need.” Here’s what buyers had to say: Kazuyoshi Minamimagoe, chief buyer and creative director of Julie Gilhart, senior vice president and fashion director, Barneys New women’s, Beams Co. Ltd., Japan: “Japan’s fashion market is York: “We are definitely buying very carefully. We are ask- Andrew Keith, president, Joyce Boutique Holdings Ltd., Hong Kong: witnessing a very slow start for spring-summer, effecting ing a lot of questions. If something is expensive, we ask “There was a refined sobriety to many of the collections. our buying to a careful and focused selection of brands. why. If something is a ‘one-season wonder,’ we are saying Tailoring was key, and the focus was more on investment Comme des Garçons and Stella McCartney — brands no. We are looking at everything with a precise and stra- classics, with designers focusing on innovation through that portray a strong, unique identity of their own, rath- tegic fashion consciousness. We are making it easier for fabrication, finishes, inventive cutting and draping. We er than trend — are definitely the most interesting.” our customer by editing even more than usual. We are also didn’t see many designers taking risks, preferring to con- being more imaginative in how we will sell things for fall. centrate on fine-tuning the brand positioning. We are al- Marigay McKee, fashion and beauty director, Harrods: “We aren’t It was definitely a flashback to 1982, when the economy locating our budgets to those brands that can deliver a reducing our budgets, although we have edited out some was tough, but yet there was plenty of style. The best shows point of difference and desirability for today’s customers. brands. We’re backing all the brands that continue to de- were Lanvin, Balenciaga, Yves Saint Laurent, Nina Ricci, Although we are looking at an overall reduction, we have liver consistent growth and increased desirability. Our Dries Van Noten, Givenchy and Martin Grant.” kept budgets open for new and emerging brands that three favorite Paris shows were Lanvin, Balmain and provide a compelling new vision. Brands that managed Givenchy. As for the power shows, Dior was exquisite, Linda Dresner, owner, Linda Dresner, Birmingham, Mich.: “Our to deliver perceived value will be most successful at re- Chanel was very Karl [Lagerfeld], we loved Louis Vuitton intention is to spend probably 20 percent less. It’s more tail for us. The collections that we felt were particularly and YSL was more intellectual but still very of the mo- cherry-picking: trying to keep a lot of animation in the strong were Balenciaga, Comme des Garçons, Yves Saint ment. We look forward to a solid fall season with great store. Clothes have to really speak with a loud voice if Laurent and Alexander McQueen.” outerwear, lots of capes, biker jackets, great coats, a big we’re going to say yes. There have been wonderful coats resurgence of leather and suede, from skinny leather leg- all over, whether small or military. A soft, romantic Ed Burstell, buying director, Liberty, London: “Paris designers gings and dresses to suede jumpsuits and shoes. There blouse looked very good at Chloé mixed with military. played it on the safe side — with a few notable excep- was a lot of fur on show with astrakhan and lambskin key We’ve seen a lot of fur, and small fur jackets or soles tions being Nina Ricci, Alexander McQueen and Comme in a lot of the collections. Velvet also crept into a lot of with a vintage flavor look good. There’s still some rock des Garçons. It’s odd given the economic climate as cus- shows as a detail or edging, as did lace. Belts are still key, ’n’ roll looks, but very aggressive dressing looks old hat tomers are only buying the exceptional pieces — ones and belted cardigans and coats still a feature. The little to me. Prices are high, but I feel people are trying to that can evoke an emotional response. The best apparel black dress still reigns supreme for day or evening, and be cooperative and keep them same. We loved Yohji messages were interesting dresses in every shape, color over-the-knee boots, flat or high, are king whilst platform Yamamoto, Azzedine Alaïa and Junya Watanabe.” and fabrication, and investing in great outerwear. The skyscrapers will still rule the footwear stakes. The skinny biggest disappointment was the Eighties influence… pant, more high waisted than before, is the de rigueur Ann Watson, vice president and fashion director, Henri Bendel: again. My top collections were Rick Owens, Dries Van trouser — in spandex leather suede or wool, as close to a “We were excited to see more daywear options come Noten, Alexander McQueen and Stella McCartney. legging as one can get without it being a legging.” down the runway, addressing today’s more casual life- Liberty will be carrying more fashion from Paris next style needs, as well as the continuation of the strong- season. Our customers want to see fresh design that is Ken Downing, senior vice president, fashion director, Neiman shoulder jacket without it looking too Eighties. Favorite not overly commercial or overly distributed. You have to Marcus: “We’re pleased with Paris: the poise, the pol- shows were Alexander McQueen, Sharon Wauchob, Rue look under every rock — and that includes every trade ish and the sense of femininity Paris had this season. du Mail, Balenciaga and Christian Lacroix. We will focus show, big and small, and every multibrand showroom. We loved Balenciaga, Lanvin, Christian Dior, Nina on the streamlined silhouette that our customer loves, This strategy is extremely effective for us, with over Ricci, Chanel and Stella McCartney, and we picked up with, among key items, black leather, especially the a dozen new resources being added for fall across all fashion categories.” Christian Cindy Ho, fashion and merchandising director, Villa Moda, Kuwait: Dior “Collections are priced about 10 percent lower than av- erage compared to last year. We’re getting closer to ‘the right product for the right price.’ The message from the brands is clear: that even in tough times, there is always a good time to be had somewhere. We saw more colors, more embellishment with beautiful colored stones, more fun and cheer from the music and overall ambi- collections/fall ence. We are seeing a lot more of a focus on the shoul- PARIS der and the waist, using shoulder pads and belts. The ’09 look pairing a dress with a coat is also important, and leggings, in colors, prints and embroideries.” Her favor- ite collections were Lanvin, Manish Arora, Miu Miu and Yves Saint Laurent.

Sarah Rutson, fashion director, Lane Crawford, Hong Kong: “My business in certain designer brands remains strong, and the collections I loved the most were strong and consis- tent, especially Givenchy, which was incredible, with so much to work with in the showroom and great pricing. Balenciaga and Lanvin have continued strength at retail now, and this is reflected in our buys. I feel very posi- tive for Stella McCartney as well as Roland Mouret and Haider Ackermann. To be frank, this isn’t the best Paris season I’ve encountered. The runways were often too much a sea of black and lacking femininity and color, though we did start seeing a bit more optimism at the end. There are prevailing Eighties and Forties influenc- es: dresses with long sleeves, a lot of strong shoulders, one-armed tops and dresses, skirt suits and the return of sheer hosiery, leather, shiny metallics and highlights of lace. I hope, going forward, designers can give more Stella sense of femininity and not focus too much on aggres- McCartney Balenciaga sive warrior looks.”

WWD, MONDAY, MARCH 16, 2009 5 WWD.COM Givenchy Alexander McQueen Theyskens Departs Ricci By Miles Socha PARIS — Olivier Theyskens and Nina Ricci are of- ficially divorced, WWD has learned. In a joint statement, the designer and Ricci said Theyskens exited the French fashion house on March 10, ahead of the expiration of his con- tract in October. Ricci “wishes to re-orientate its development strategy for the years to come,” the statement said. “Consequently, Nina Ricci and its artistic director Olivier Theyksens have decided by mutual agree- ment to cease their collaboration.” There was no mention of design succession at Ricci, but the separation should pave the way for the arrival of Peter Copping who, as reported in WWD Jan. 28, is to join Ricci as creative direc- tor from his current post as a top design deputy to Marc Jacobs at Louis Vuitton. Neither Theyskens nor Ricci would comment beyond the statement, a quiet denouement to a two- year partnership marked by torrents of editorial ac- claim, weak commercial success and, more recently, signs of discord between a wunderkind designer and a brand owner keen to bring its fashion house up to the level of success of its perfume business. Spain’s Puig Group owns Ricci, as well as the fash- ion houses Carolina Herrera and Paco Rabanne. In anticipation of a separation announcement, speculation about Theyskens’ next move was a hot For more from topic during Paris Fashion Week, which wound up last week. Paris shows, Sources ruled out the possibility — touted in some GIANNONI GIOVANNI PHOTOs BY

Dries Van Noten t see WWD.com. editor circles — of a design role at Schiaparelli, a

ALL dormant brand owned by Tod’s Diego Della Valle that is not slated for revival until 2010 at the earliest. black stretch leather legging. Our customer is shopping for I’m realizing I can no longer buy from a collection because Della Valle has denied conducting a design search things that she does not already own; she is looking for ver- I personally love it or I personally love the designer or the for Schiaparelli, a mythic name in fashion synony- satility, not duplication. The [season’s] low point would be sales director. Whether it’s a T-shirt or a fur coat, I have to mous with surrealism and shocking pink. the abundance of colorless and black collections, as well look at it and know in my heart that I can sell it. Our clients As reported, Theyskens owns the rights to his as the lack of fashion jewelry, resulting in a very austere have to look at something, and it has to really grab them. trademark and is said to be mulling a relaunch of aesthetic which does not relate to our customer’s desire to This is a time when you know which designers you do have his signature label. express her femininity and irreverent spirit.” a true relationship with. Alber [Elbaz] tried really, really Brussels-born Theyskens, who catapulted to hard to work with fabric houses that make the satins that fame at age 21 when Madonna wore his black Barbara Atkin, vice president, fashion direction, Holt Renfrew, he uses so much, to get prices down at Lanvin. He’s sensi- satin hook-and-eye gown to the Oscars in 1998, Toronto: “Paris reminds us that the world of luxury will tive to what’s happening. If you price yourself out of the put his signature brand on hiatus when he joined survive with stealth clothing that makes its statement market, no one is going to be successful.” Other collections Rochas in 2003. His reign there, marked by criti- not through gimmicks or frivolous flash but through in- with standout items included Nina Ricci and Balmain. cal acclaim, ended when owner Procter & Gamble telligently executed design. We particularly liked the Co. shuttered the money-losing fashion house to collections from Balenciaga, Lanvin, Yves Saint Laurent Kelly Golden, owner, Neapolitan, Winnetka, Ill.: “The Paris concentrate on fragrance. (Rochas ready-to-wear and Alexander McQueen. Our shopping list includes runways were a clear reflection of the current times: has since been licensed to Italy’s Gibò Co. SpA big-shouldered jackets, leather biker jackets and skinny restrained, sensible and dark. Designers opted for un- and debuted its first collection, by designer Marco leather leggings, sheath dresses, couture-shaped coats derstated but strong looks instead of over-the-top flam- Zannini, during Paris Fashion Week.) and capes to fit over big-shouldered coats, dresses, blous- boyance. Suits were back in a big-shouldered way, empha- Theyskens’ final runway collection for Ricci — es and knits, especially sweater coats and knit dresses. sizing the power silhouette seen all over the runways. I paraded last week on a sandpaperlike runway, his There has been a slight shift in our vendor base due to wish there was more color, but my clients will splurge on models perched on stilt-like shoes — was viewed our commitment to supporting new talent. We are adding Lanvin and Andrew Gn, who provided timeless, sophisti- as a creative kiss-off to Ricci management and a Joseph Altuzarra and Phi and bought them out of Paris. cated pieces. Overall, designers were able to bring prices defiant statement of his Goth leanings versus the Budgets are conservative. Prices remain high, and we are down 10 to 20 percent and have been responsive to the romantic and ethereal image of the Ricci brand. buying those pieces within each collection that look every economic environment.” The Ricci label is sold in about 200 doors bit their value and will have emotional appeal to our cus- worldwide, including about 50 in the U.S. During tomers. Our vendors have been great partners, opening Averyl Oates, chief buying director, Harvey Nichols: “I think the Theyskens’ tenure, he unveiled a bright, dove-gray the line of communication and finding ‘sweet spot’ price customers want either classic timeless pieces, that de- boutique concept for the brand’s flagship on the points wherever possible.” signers such as Azzedine Alaïa or Alber Elbaz at Lanvin Avenue Montaigne, and forged an alliance with ac- do so well, or something whimsical that they won’t find tress Reese Witherspoon for red-carpet dressing. Jeffrey Kalinsky, executive vice president, designer merchandising, anywhere else. I loved the Forties trend, a clever combi- Before Theyskens, Lars Nilsson was the de- Nordstrom: “Our vendor matrix out of Paris will remain nation of austerity and elegance. I noticed that accesso- signer of Ricci for three years, during which time the same as last season. The only difference is our buy ries were also very strong, heels were still high, but styles rtw sales doubled. Prior to that, James Aguiar and will be tighter, focusing on the pieces we loved the most more simple. Dries Van Noten has the most wonderful Nathalie Gervais had design stints at the couture for our stores. Dries Van Noten gives buyers everything court shoe with a python sole. At Alexander McQueen, house, which was founded in 1932 and is famed they need for success. The fall collection of Givenchy was the commercial collection was just as beautiful to see for its perennial fragrance, L’Air du Temps. so precise, and the energy around what Riccardo Tisci and touch as it had appeared on the catwalk. Also the is doing for the house is another formula for success. Balenciaga show was strong and dramatic, but actually Haider Ackermann’s palette, materials and shapes cre- in the showroom the velvets and devorés appeared softer, A Nina Ricci ated one of strongest shows of the season. For me, Yves more accessible and the shoulder pads were removable. look from the Saint Laurent was just short of perfection. Stefano Pilati Leather was everywhere, and the best was black, as seen fall runway. managed to make a gray pin-striped skirt suit newsworthy at YSL and Balmain. Will the leather trouser or even — which ain’t easy.” leather gloves be next season’s favorite?”

Erin Mullaney, designer wear buyer, Browns, London: “I think prices Nicole Fischelis, vice president, fashion director, Macy’s: “It’s are really high, it’s a problem, people need to work harder. been an exciting week with the fusion — to confusion — of At Balmain, we were gob-smacked at the prices, even more genres, from chic to Baroque, reinventing the approach to than we were last time. People will tolerate that for only so masculine and feminine, molded to architectural silhou- long. We’re buying only special pieces from each collection, ettes, a continuation of couture crafted detailing-dressing whereas before we’d buy loads of knitwear, or entry-level and a homage to the Eighties.” Fischelis cited belted jack- items. Key looks for the season will be an oversize men’s ets and coats, fur and art prints as key trends. “As in New blazer with leggings and little dresses with a leather jacket. York, black is strong with many different kinds of shine, Our favorite collection was Alexander McQueen: It was the as well as a bright palette, where red is emerging as a perfect time to put on an amazing production. Azzedine major statement.” Alaïa developed more couture detailing. I also loved the way Rick Owens used light and dark. Balenciaga was very new. Elizabeth Lepore, owner, Jimmy’s, Brooklyn, N.Y.: “The most dy- I thought the overall look at Hussein Chalayan was really namic and creative pieces were in the realm of evenin- clever. It’s probably the sexiest collection he’s ever done. It’s gwear. Outstanding were the collections of Zuhair Murad, going to be great for us.” Elie Saab and Jasmine Di Milo. Homing in on collections, For more such as these three, and focusing on selecting special-oc- on Nina Karen Daskas, co-owner, Tender, Detroit: “I have cut at least casion party attire for our clients, is how we are structur- Ricci, see eight brands, and I cut my budgets by at least 20 percent. ing our buying for the upcoming season. Our handpicked WWD.com. I have to really stand back and take a look at my business. selections will be ‘special.’ ” 6 WWD, MONDAY, MARCH 16, 2009

Christian Dior Valentino Glitter

ParisRocks fashion rocked — literally — as designers delivered looks ranging from Olivier Theyskens’ minidress with a glitter-dusted hem for Nina Ricci to Haider Ackermann’s chain mail-effect tunic to Maria Grazia Chiuri and Pier Paolo Piccioli’s stone- encrusted coat, its hem swathed in fox, at Valentino.

Nina Ricci GIANNONI GIOVANNI PHOTOS BY WWD, MONDAY, MARCH 16, 2009 7 WWD.COM

Balmain Miu Miu

Haider Ackermann 8 WWD, monday, march 16, 2009 WWD.COM Fine Jewelry For more on the luxury outlook, see WWD.com. Luxury’s Lament: Days of Flaunting Fade to Black By Sophia Chabbott crisis — or almost there. Ivanka Trump After posting a $509 mil- How does a luxury bracelet. lion loss on Wednesday, brand cope when luxury is Neiman Marcus chairman seen as a stigma? and ceo Burton Tansky said As the reality of the econ- the retailer’s “core cus- omy sinks even deeper into tomers have seen their net consumer consciousness, the worth diminish…they are concept of luxury has gone heavily invested in the stock from a badge of honor to a pri- market and this has impact- vate indulgence. While there ed their desire to spend.” But are some who continue to pur- Tansky is optimistic, adding chase designer bags and shoes “a meaningful improvement with four-digit price tags, many in the economy will bring [the consumers have said it somehow aspirational customer] back feels wrong to shop — even if into stores, although she will be their wallets haven’t thinned out. more discerning than before…. The turning of the tide — no mat- Once the economy improves, the ter how long it lasts — is creating Anya Hindmarch’s core customer’s shopping will be- concern among industry executives. bespoke Ebury bag. come more normal.” Last month, a group of senior execu- British designer Julien Macdonald, tives from luxury brands that included A couture too believes the dormant shopper will Graff, Loro Piana, Ferrari and NetJets Roger Vivier wake up. “There will always be fashion gathered privately to discuss how to con- shoe. victims out there — and I mean that in the tinue to promote their respective brands and positive sense of the word. There will always break the current perception that luxury is a be women who want to look great and who are dirty word in times like these. very into fashion, clothing and beauty. These Part of the problem, according to Karl Lagerfeld, are women who want the latest. They’ve just got is that the meaning of luxury had become distorted. to have it.” “The word [luxury]…was used for things it was never Underhill concurred with Macdonald, but said there related to,” the designer said. “It became nearly obscene. Graff’s Flame is a larger issue at hand. Now it has to change…and go back to what it used to be about necklace. “There’s always a segment in our culture that spends — discretion and elegance, and not bling-bling. The hint of vul- money on fashion,” said Underhill. “The question is where do garity has to go. The luxury business will never die. Luxury is they wear it? There are fewer parties and occasions.” about quality, refinement, innovation, and not about price.” Brands are fighting against the notion that indulging in luxury is vulgar. Lagerfeld also abhors stinginess, which he calls a terrible vice that “No, luxury hasn’t at all become a dirty word,” said English accesso- often emerges in times of crisis among well-heeled people. “The money has ries designer Anya Hindmarch. “Luxury is about taste, and taste has always to go out the window to come back through the door,” he said. been to me what’s not wasteful. I’m not into excessive waste and showing off. The Frédéric De Narp, president and chief executive officer of Cartier in North ultimate luxury for me is an old Jaguar E-type or my grandfather’s watch. The be- America, said there has been a crossover and confusion between trendy fashion spoke Ebury bag we launched quite a long time ago now, it’s something you’d hand and true luxury in the past several years among consumers and brands. on to your grandchildren. [Customers’ choices] haven’t changed massively. We’ve not “Fashion is of the moment and timeless,” he said, noting that communicating had that blingy customer. People are being careful about what they spend. They’re Cartier’s quality and heritage is of utmost importance. “True luxury should be buying pieces that they know they’re going to love in 10 years. The days of buying timeless. Cartier has never compromised on that. When you’re talking about a bag that you’re going to give away six months later are over.” translating your important sentiments into objects, quality will always sell.” Even Coach, credited with kick-starting the “accessible luxury” market Paco Underhill, managing director of consultant Envirosell and author of for accessories, is broadening its options with a bright, youthful collection of “Why We Buy: The Science of Shopping,” said consumers can be divided into accessories called Poppy to expand its reach without hitting the accessible three groups: the downwardly mobile, those who are or know someone at fis- luxury reset button. The line has a wider price range. cal risk and those who remain wealthy but feel fashion or luxury consump- “I don’t know what luxury means anymore to people,” said Reed tion is bad manners right now. Krakoff, Coach president and executive creative director. “A lot of people “There’s a fundamental issue here in which so many Americans have give Lew [Frankfort, Coach chairman and ceo] credit for coining the term no grasp on their personal finances,” said Underhill. “That whole afford- ‘accessible luxury.’ Like anything that starts out as a good idea, it gets able luxury category was based on people spending money where they overused. It’s meaningless in its former definition. Prices need to make shouldn’t have. One of the fundamental issues we have in our culture is sense. Shopping has to be fun. People are in a store for a reason. They who can afford what.” want to be transported.” Judith Ripka believes the current mind-set will have a longer, residual And it’s obvious — even with the dismal retail numbers — that not ev- effect than the actual recession. eryone has stopped shopping for luxury products. Handbags are still being “The day will come when consumers will not worry as much about how they sold at Neiman’s and Saks Fifth Avenue, women continue to purchase fash- spend their every dollar, but they will always remember these economic challenges ions from Lanvin or Ralph Lauren, and shoe departments — while not as busy as when contemplating a purchase,” said Ripka. “Luxury will continue to be desirable, but in the boom times — still have women trying on the latest Manolos, Louboutins and timeless and classic pieces will undoubtedly be the focus because of their lasting value.” Pradas. The fine jewelry category has retained some sparkle, as well. Roger Vivier, the upscale French footwear and accessories brand owned by Tod’s Several pieces of jewelry worn by celebrities such as Angelina Jolie and Beyoncé SpA, continues to produce its high-priced, ultraluxe collections designed by creative Knowles at this year’s Academy Awards and Golden Globes, ranging from $85,000 to director Bruno Frisoni. While custom-made footwear comprises only a portion of over $1 million, have been sold. Vivier’s sales, shoes in the line often have five-digit price tags. “High-end jewelry has what we call ‘refugee memory,’” said Underhill, who re- “Today, people are more careful with their buys and investments,” said Vivier gen- called stories of Eastern European Jews who fled in the 1930s with only their jewelry eral manager Sabine Brunner. “So you really need to stick to your values and deliver and gemstones in their pockets. “For a while, people lost the notion that jewelry is what you promised you would and what customers expect from you.” refuge. They thought, ‘I could put wealth in an offshore bank.’ Now people are re- Several luxury brands and retailers have said people are still shopping, though thinking that. For people selling small, eminently portable treasures, this is an inter- even the highest spenders are exerting caution. esting time.” “If a person is buying a Dolce & Gabbana dress or a Roberto Cavalli bag, they’re Ivanka Trump the real estate scion and proprietor of a signature diamond jewelry looking at the price tag,” said Tony Salame, ceo of Aïshti, the designer retailer that brand, said people are still shopping the high end, but the trend is to trade down. She said has two 50,000-square-foot Aïshti stores in Damascus and Beirut, as well as franchises those who once spent $100,000 on a piece are now looking at $60,000 pieces of jewelry. of Cartier, Gucci and Marc Jacobs in the Middle East. “My goal is not to bully someone to spend the maximum dollar,” said Trump. “It’s “Some of our suppliers went crazy on the pricing [in previous seasons],” Salame finding the right piece at that time and keeping the customer.” said. “The same exact bags would be 10 and 15 percent higher every season.” Ivanka Trump, Judith Ripka, Graff and other fine jewelry brands are keen to part- Nonetheless, Aïshti is still showing increases and has the same buying budget as ner with their clients’ charities for special events. Some have said their clients feel last year. The firm is opening 10 stores in Beirut this year. more comfortable buying when there is a charitable element. Salame said his stores aren’t so much affected by the economic quake that has Henri Barguirdjian, president and ceo of Graff, America, who was at the afore- riddled U.S., Russian and European luxury houses, but there are some aftershocks. mentioned meeting of luxury brands, is livid about the media’s role in shifting buy- “People here want more and more sales, even though they can afford [full price],” ers’ perceptions. Barguirdjian said he pulled Graff advertising from The New York he said. “They hear things are 80 percent off in the U.S. and they want a bargain be- Times after a recent story on the shame of shopping, and added that business is good cause of the recession.” at Graff, where the average sale is $200,000. But consumers now view value in more than simply price — and that is one reason “Since when is America ashamed of making money?” he said. “[Aspiration] has Donna Karan is trying to bring deeper meaning to her brand. made this country what it is. As long as you make an honest living and pay your taxes, “I took a very hard look on how I was going to address luxury,” Karan said. “Once there is nothing to be ashamed of. So far, we are doing as well as last year. We’ve had somebody wears luxury, they might buy less, but it’s really hard [to turn away from a lot of high-end sales of rare, important stones, which is logical.” it]. It has a longevity. It’s not something disposable, of the moment. I think it’s about a Trump does not equate luxury with excess and concurs with Barguirdjian on the conscious luxury, not the frivolousness of it. For me, it is about the commerce and phi- media intervention. lanthropy, but it’s not philanthropy in a sense that I am buying this and giving money to “There’s a certain vulgarity to excess in a time when you look around and there’s that. It’s being about becoming a conscious consumer — that it’s not just at the whim of such pain,” said Trump. “There are people who have managed their finances and they I want and I need, and that everything you are doing has a reason and purpose.” shouldn’t feel guilty about buying.” But even with the apparent sea change in consumers’ mind-set, there are those — With contributions from Miles Socha, Samantha Conti, Marc Karimzadeh, who believe things will eventually return to where they were before the economic Katya Foreman and Ellen Groves BASELWORLD THE WATCH AND JEWELLERY SHOW MARCH 26 – APRIL 2, 2009

WHERE BUSINESS BEGINS AND TRENDS ARE CREATED WWW.BASELWORLD.COM 10 WWD, MONDAY, MARCH 16, 2009 WWD.COM

Atelier Jonathan Christian Swarovski Kelsey Louboutin

Louis Quatorze

Corto Moltedo

La Touche Finale Some of the most successful Paris collections made big, bold statements. So did shoes, bags and jewelry — which packed plenty of glamour, too. — Roxanne Robinson-Escriout

VBH

Bruno Frisoni

Pierre Hardy Nicholas Kirkwood

Tom Binns Longchamp THIERRY CHOMEL

Eddie Borgo Swarovski PHOTOS BY 3x7 (right)

WWD, MONDAY, MARCH 16, 2009 11 WWD.COM Accessories Report Premiere Classe: Headwear, Scarves Pique Interest

By Alex Wynne Hauet on a scarf and feel like you’ve got a whole new look,” said PARIS — Mirroring declines at Lilli Hamrah, co-owner of the trade fairs across Europe, foreign 10,000-square-foot boutique visitors to the Premiere Classe Hamrah’s in Cresskill, N.J., whose accessories show at the Tuileries budget was down 10 percent. Gardens here dropped 15 percent Although business was slower compared with last year, and total than usual at Epice scarves, sales visitor numbers fell 7 percent. manager Virginie Tasser said the U.S. visitors to the show, which brand’s printed wool collection ran concurrent with the Paris for women featuring early 20th runway collections and ended century circus iconography for on March 9, dropped by almost 50 euros, or $64, at wholesale, a quarter. Retailers from Japan, was a hit. though the strongest international “They’ve gone away from som- showing with 1,600 visitors, de- ber black,” said Hellen Tanchel, creased 18 percent from last year. director of specialty store That’s Rosato earrings. Attendance by U.K. buyers, hard It in Johannesburg. hit by the weaker pound, declined Wendy Foster, owner of a four- 28 percent. Benoit Missolin headband. store clothing and accessories Amid the economic downturn, chain of the same name in Santa Jewelers Aim to Dazzle in Down Times retailers at the show looked to hats and scarves Barbara, Calif., said ethnic-inspired scarves from as key pieces to brighten up their offer. the Himalayan Cashmere Co. were on her shop- By Stephanie Epiro “Hats are making a comeback in a quirky way,” ping list. said Ann Comerford, group buyer for Dublin’s In handbags, Brown Thomas’ Comerford pre- MILAN — High-end jewelry firms exhibiting at the About J trade Brown Thomas department store. dicted a return to “a more grown-up look,” in- show here said the jewelry industry was locked in a wait-and-see One-off creations at French hat maker Benoit cluding square bags on chains and suede styles, period as a result of the global economic crisis. Missolin were popular with retailers such as plus Gothic studded bags. Many brands added fashionable and romantic details to their London’s Liberty and On Pedder in Hong Kong, “Our customers are looking for craftsman- collections, combining valuable stones with semiprecious ones and including styles like headbands adorned with ship and something from Europe, not China,” utilizing several hues of gold at the fair, which ran Feb. 22-24, look- flowers or with blooms made from woven fabric said Hamrah, who purchased bags from Italian ing to entice hesitant buyers. from Uzbekistan. Prices ranged from 80 to 116 brand Majo, which also picked up new accounts “We had programmed to open a flagship in Rome this year, but euros, or $102 to $149 at current exchange. at Neiman Marcus and Galeries Lafayette. we had to put it off,” said Federico Gauttieri, founder of five-year- “Contemporary millinery is really strong in the Designs in black, bottle green and sage green old jewelry brand Casato Roma. “It’s impossible for us to predict U.K.,” said Selfridges buyer Sarah Strong, who were popular, sales manager Carla Coppari said. how the year will go, but we have to push creativity and expand the was disappointed by the selection at the show. Coiled and hand-stitched bags in washed leather collections.” Strong predicted Forties styles and felt fabrics wholesaled for 130 to 190 euros, or $167 to $243.

Maria Elena Aprea, creative director of Chantecler, also es- would be among strong fall-winter trends. “We In jewelry, understated items with a twist MAITRE poused increasing product offerings in today’s shaky climate. will try to bring that to Selfridges in a cool way,” were key sellers, such as Monegasque brand Miss “ Yo u have to show the client you are passionate, that you can she said. Bibi’s quirky collection of gold plated and silver create something magical,” Aprea said. “It’s the moment of truth for Scarves are a key recessionary item for the jewelry featuring miniaturized everyday objects DOMINIQUE every brand to show what you are made of, and it certainly is the way they dress up a look, retailers said. like corkscrews and shoes. The brand’s best-sell- BY right time to expand retail space.” “If you’re watching your budget, you can put ing shoe ring wholesales for 36 euros, or $46. PHOTO Rosato jazzed up the fashion quota on its lines with a new col- lection called Ribbon. Earrings, necklaces and rings featured rose, yellow or white gold pavé-diamond-encrusted ribbon that trimmed oval-shaped smoky brown or lemon quartz. Another ring’s center stone of rock crystal was positioned over a pavé-diamond bow. Vintage was the theme for a new collection by Casato Roma. The firm set a cascading gold branch of diamonds under a rectangular cut crystal rock or amethyst in period-looking rings and pendants. Recognized for its playful pieces, Chantecler upped the whimsy on its new collections including Di Amour, a line of gold necklaces, earrings, rings and bracelets made up of the firm’s signature chick- en shaped into a heart, some studded entirely in white diamonds. The Capri-based jeweler also presented Marinelle, a marine- themed line that included a jellyfish pendant made of pink quartz, its tentacles sparkling with rubies and diamonds. Euro Pearls, a London-based family jewelry company special- izing in pearls, is pushing its own brand, Yoko, created from the most valuable pearls that can be sourced. Under Yoko, Euro Pearls launched a line of pistachio-hued Tahitian pearls in necklaces and earrings linked with gold pavé crosses. “White pearls are classic and timeless,” said Michael Hakimian, chief executive officer of Euro Pearls. “But we cater to the woman who already has those and she wants to take it to the next level.” Euro Pearls plans to open two to three Yoko boutiques over the next few years. For its 80th anniversary, Vicenza-based Fope showed flexible chain bracelets in white, rose and yellow gold, constructed from 64 micro-hinges and topped with a round gold bauble studded with brown or white diamonds, or pink sapphires. Giulia Cazzola, mar- keting director for the company, said though the designs were lim- ited edition, they would be supplied to stores with a small display unit that will screen an animated short film on the bracelets. “This sort of technology combined with more contemporary prod- uct is attracting a new customer base,” said Cazzola. Gavello tweaked jewelry’s ongoing skull trend. Fashioned from black gold, Gavello’s skulls had smooth surfaces made from black pavé diamonds and red ruby eyes, and were flanked with red coral- backed wings in rings and necklaces. An ecologically mined gold from Argentina that Valenza-based Garavelli sourced for its new Globo line came in round-cage gold pendants dotted with diamonds, some containing a pavé ball threaded onto necklaces. Garavelli also presented a revamped version of the tennis bracelet, a wraparound circle made of white, brown and black diamonds, as well as sapphire or pavé-diamond- covered oval links that can be tailor-made into necklaces, earrings and bracelets. “The customer becomes her own jewelry designer,” said Elisabetta Molina Valerani, marketing director of Garavelli. “Now’s the time to get closer to customers and elaborate on what they want, giving newness that’s going to keep them interested.” Seen at the Garavelli stand was Jeri Pilgrim from Frasca Jewelers in Palm Desert, Calif. “Our budgets have been cut because clients are buying half of what they used to now, but we are here to find the pieces that stand out,” Pilgrim said. “That’s what makes the difference now.” 12 WWD, MONDAY, MARCH 16, 2009 WWD.COM Innerwear Report Nap: The Undoing of a Sleepwear Dream By Karyn Monget The unraveling of the company began a year ago back at major department and specialty stores. A purchase when disputes erupted between officials at NAP and price could not be learned, but a relaunch of the Anne NAP Inc., a once-thriving $100 million linge- French bra brand Princesse Tam Tam over late deliv- Lewin brand could generate first-year wholesale sales of rie company, has faded from the scene amid finan- eries to Dillard’s Department Stores, Victoria’s Secret more than $5 million, according to industry estimates. cial problems. and Anthropologie. “I’m very thankful that Nitches allowed me to ac- Known as a key player in the better and upscale sleep- “There were chargebacks that were passed on to quire the label,” said Satterberg, who now serves as vice wear, robe and foundations arena, NAP’s top brands over Princesse Tam Tam, and they didn’t like it one bit,” president of the Anne Lewin division of Jaclyn Apparel, the past 25 years included Anne Lewin, Derek Rose, the Keyloun said. “Neither did the retailers.” where the new collection was unveiled in February. licensed Crabtree & Evelyn, Bill Blass Lifestyle, Docker’s, Brianna Scarborough, NAP’s former brand man- Officials at Crabtree & Evelyn could not be reached Disney Couture, Claire Murray and Cuddl Duds, as well ager for Princesse Tam Tam and Shock Absorber, said, regarding the status of the company’s 15-year-old sleep- as private label and several distributorships in the U.S., “They gave no reason for the layoffs, just that they wear collection. However, a former NAP executive said, such as Princesse Tam Tam, Gossard, Shock Absorber, were shutting down the brands. One season prior to “Crabtree & Evelyn Corp. decided to eliminate sleep- Karen Millen, Odille Oasis, Argentovivo and Eminence shutting everything down with Princesse Tam Tam, we wear because it wasn’t profitable for them. The last de- men’s innerwear. At one time, the company held licenses had problems with deliveries, and they said we owed livery was in July ’08, and there were no receipts for for XOXO lingerie, Vassarette sleepwear and sleepwear them money. So we paid for spring and summer, but the holiday. There’s still a lot of old inventory left over by Casper the Friendly Ghost. same thing happened again for fall. But Princesse Tam [at Nitches] from Crabtree & Evelyn, Anne Lewin, Today, NAP’s business, which once took up three Tam didn’t deliver and NAP didn’t want to ship until Princesse Tam Tam and other brands in San Diego and floors of the 16-floor NAP Building at 171 Madison Princesse Tam Tam paid [past chargebacks]. Dillard’s, maybe the distribution facility in Reno, and they are Avenue, has been downsized to selling candles, candle- Victoria’s Secret and Anthropologie wouldn’t allow us to trying to liquidate everything. Closeout retailers like holders and related home accessories such as pottery by be late, and the shipment date passed, so they canceled Tuesday Morning are buying Crabtree & Evelyn robes Bill Blass and Newport Blue. During the official market orders. But we did very well with sleepwear business by and sleepwear for $5 per unit, and $3 per unit for Anne week in early February, a spokesman who was still with Anne Lewin and Crabtree & Evelyn at Costco.” Lewin. Jobbers are also buying branded merchandise the company when asked why there were no innerwear Addressing the seven-year relationship between and private label robes for men for $10 that used to be collections to review, said, “We’re restructuring for this NAP and Princesse Tam Tam, Christophe Piras, export sold at Saks for about $168.” market only.” manager for the Paris-based bra brand, said, “There is As for the 84-year-old Derek Rose sleepwear and Innerwear companies, like most apparel firms, are nobody left at that company, but we are still on contract robe label for men and women from London, Emily Hall, being hammered by the dismal retail climate and sky- with both NAP and Nitches. Because of legalities, I can- NAP’s former brand manager for Derek Rose, Crabtree & rocketing production and shipping costs. Some firms are not elaborate but eventually we will iron this out. From Evelyn, Eminence and Backwoods, said, “I’m a friend of cutting head count, as well as reducing employee wages what I understand, Victor Lee’s position wasn’t easy, and the Rose family. When it became clear NAP wasn’t going by 10 percent. they let everybody go. I have the impression that Steve forward with the Derek Rose brand, I became an agent But NAP stands out as an example of an entrepreneur- Wyandt is not a very forthcoming man.” for the brand, and I can now focus 100 percent on it.” ial American dream that turned into a nightmare over the past several months due to mismanage- ment by parent company Nitches Inc., according A flirty A classic to a number of former NAP employees, licensees bustier by Crabtree & and executives in joint ventures for distribution Princesse Evelyn robe. of European brands in the U.S. Tam Tam. Since NAP, whose name is an acronym for its three original partners — Adnan Kandiyoti, Pano Zomopoulos and the late Niko Oreopoulos — was formed in 1984, the company has been sold twice. The first time was in 2002, when it was acquired by Bill Blass Ltd. Three years later, Blass sold NAP to San Diego-based Nitches in an exchange of NAP shares for shares in Nitches. Nitches, a publicly traded manufacturer and distributor of men’s and women’s apparel, did not file its annual report for the period ended Aug. 31 by its prescribed due date. The company volun- tarily delisted itself from Nasdaq in December, allowing it to not file an annual report or quarter- ly earnings. The most recent stock price history Anne Lewin’s of Nitches saw a 52-week change of minus 97.62 sleep shirt percent, and shares were trading at 0.03 cents on has a sporty the pink sheets on Friday. The most recent quar- look. terly data filed by Nitches was on May 31, which cited total revenues of $26.3 million. Phone calls to Steven P. Wyandt, chairman and chief executive officer of Nitches, and his son, Paul Princesse Tam Tam is owned by Japanese concern Hall exhibited the high-end Derek Rose brand at the M. Wyandt, president and chief financial officer, seeking Fast Retailing Co. Ltd., owner of the 590-unit Uniqlo CurveNY trade show last month. comment about the company were not returned. brand stores in Japan and the U.K. Regarding the Backwoods business, Nitches acquired Victor Lee, former president of NAP, said he made re- There had been hopes for the newest license at NAP Backwoods Equipment Co., a lifestyle retail chain and peated phone calls and e-mails to the Wyandts last year with O’Bryan Bros. Inc., a deal inked in December 2007 adventure business, in March 2008. But the deal went regarding the state of NAP’s business and its portfolio of to produce, design and market a collection of sleepwear, sour, and Backwoods, which operates nine retail units brands, but never received a response. Lee, who said he robes and loungewear under the Cuddl Duds label. But and the backwoods.com e-commerce site, bought back did not serve as an officer or director of NAP after Nitches the license was dropped this year by the licensee, said its $10 million business from Nitches in September. acquired the firm, is now president of a new company, Mark Sandler, senior vice president of O’Bryan Bros. Jennifer Mull, ceo of Backwoods, said, “I wasn’t Viceroy Collections, which sells and distributes the British “Some shipments were made in early fall ’08, but happy with what happened at Nitches. There were some lingerie brands Myla of London and Shock Absorber. nothing substantial,” said Sandler. “The reason we with- financial promises they weren’t able to fulfill. I’m now “I resigned from NAP in early October 2008 because drew our license with NAP was inactivity in February. jointly developing a lifestyle [casual apparel] line for I did not feel comfortable and did not agree with the We couldn’t contact anybody because there was nobody men and women for our Backwoods stores with Victor manner in which the Nitches board and its officers were to talk to at NAP. We became concerned as milestone Lee and his new company, Viceroy Collections.” dealing with its ongoing financing and payment obliga- dates for fall 2009 product development were not met. Lending insight to the failure of the Backwoods tions,” said Lee. “It is a real shame what happened to As senior management and support staff began leav- deal, Lee said, “The straw that broke the camel’s back Nitches and NAP. The board and officers of Nitches ing the company, it became increasingly clear that NAP for me was Nitches’ inability to obtain the necessary have disappointed a lot of vendors, former employees, would be unable to fulfill the obligations of our license financing that led to the unwinding of the Backwoods landlords, customers and, of course, its shareholders. agreement with them. We contacted Nitches when we acquisition. Jennifer Mull and I had been instrumental I am still a major shareholder of Nitches stock, which were ready to take the license back.” in negotiating and arranging for Nitches’ acquisition of is worth almost nothing right now. I hope they can turn Observers said an example of how Nitches failed to Backwoods in February 2008. Nitches completed the things around.” protect brand integrity can be seen in the case of the transaction with one seemingly simple post-closing ob- Nitches, which claims to have 80 full-time employ- Anne Lewin label, once a resource for major depart- ligation relating to a financial covenant. Nitches did not ees, dismissed over 30 NAP employees in November ment and specialty stores. The Anne Lewin label, known allow Jennifer or me to participate in fulfilling this post- and December, said Peter Keyloun, former national for the late designer’s flair for mixing textures and giv- closing obligation, and ultimately Nitches was unable to sales manager at NAP. ing robes and sleepwear a sportswear flavor with a soft satisfy this covenant. Nitches had no real choice but to “They laid off employees, without 24-hour notice edge, was acquired by NAP in 1994. Two years later, unwind the acquisition of Backwoods. and without severance, in two rounds — a week be- Lewin left the company to work as a designer and mer- “Nitches’ management had attributed such failure fore Thanksgiving and a week before Christmas,” said chandiser at the Limited Brands division of the Limited to the seizing of the credit markets in September, Keyloun. “There are maybe two people left.” Brands Inc. After she departed, NAP de-emphasized the but Nitches had more than seven months to resolve Unresolved in the seeming unwinding of the com- department and specialty store channel for the Lewin this issue. All of the efforts over the previous year pany is the future of the NAP Building. Sources said brand, and it eventually became a key label at Costco. by the Backwoods’ management team and me were Nitches has a 10 percent stake in the building, which The Anne Lewin brand was acquired in January by frustrated, but the good news is, Jennifer and I has an estimated market value of between $50 million Sally Satterberg, former senior vice president of the Body are continuing to work together as partners on the and $70 million. Drama unit of Nitches, and it’s expected to make a come- Backwoods Collection.” WWD, MONDAY, MARCH 16, 2009 13 WWD.COM Financing Offers Stability to American Apparel By David Lipke buyout firm Kohlberg Kravis Roberts, and Capps was previously a principal at Crestview Partners. Their addition to the board brings the total number of directors up to 11. After escaping from the brink of a financial meltdown, is American According to sources in London, Lion Capital maintains a hands-off management Apparel Inc. poised for a new period of growth? style as long as its investments are hitting their numbers — but will aggressively step Analysts were upbeat about the company’s new financing arrangement with London- in if things start to go south. “All companies are filled with intrigue and politics, but based Lion Capital, finalized on Friday. The new $80 million security frees the company who cares if it’s working?” said Lyndon Lea, a founding partner of the firm, in the up- from its crushing credit agreement with SOF Investments, provides for a stable capital coming book “The Towering World of Jimmy Choo,” by Lauren Goldstein Crowe and structure over the next five years and enables American Apparel management Sagra Macieira de Rosen. (That to refocus attention on product, retail development and marketing initiatives. laissez-faire attitude toward in- “The most important thing about this is that it will allow us to concen- trigue could be tested by Charney’s trate on the creativity of this company,” said Dov Charney, founder and sometimes headline-making behav- chief executive officer of the L.A.-based retailer of youthful basics, sound- ior.) ing relieved his financial headaches have been allayed. “I’m back to de- Lion Capital owned Jimmy Choo signing. We have some great new men’s shorts, short-sleeve button-downs from 2004 to 2007, originally buying and women’s dresses coming out soon that I think will be important.” it for 101 million pounds, or $198.8 In a research note, analyst Todd Slater of Lazard Capital Markets noted the million, and selling it for 185 mil- Lion Capital loan will alleviate ongoing financing concerns, and American lion pounds, or $364.1 million. Apparel should generate enough free cash flow to fund growth and The firm also kicked the tires on pay down its outstanding debts over the next five years. Roberto Cavalli, but nothing came Asked why he was confident the company would be able to of it, said sources. Among the firm’s pay down debts, including its new $80 million Lion Capital current investments are beverage loan, when it already ran into trouble with its previous $51 company Orangina Schweppes, million debt with SOF, Slater pointed to the strong funda- cereal maker Weetabix, outdoor mentals at American Apparel and the long-term nature of the retailer AS Adventure Group and

new debt. “The company is one of a select few in retail gen- s Dov Charney potato chip maker Kettle Foods. erating both top- and bottom-line growth. They are generat- Lion Capital is receiving a sweet ing a ton of cash flow — its estimated 2008 EBITDA [earnings deal from American Apparel, according to Andrew Jassin, managing director at before interest, taxes, deprecation and amortization] is $71.5 Jassin O’Rourke, a retail consulting firm. “American Apparel has a very strong million and for 2009 will be $89 million,” he noted. “The reason brand and with added capital should grow steadily,” he noted. they got into trouble was because they were growing very quickly, Lion Capital is receiving a 15 percent interest rate on its $80 million loan, which which used up a lot of cash, and then they ran into the mother of all matures at the end of 2013. Additionally, it is receiving warrants for 16 million new debt markets and were dealing with a very onerous lender.” shares of American Apparel with a strike price of $2, with an expiration date of 2016. American Apparel signed a slew of leases last year, opening 81 stores prior to the Once exercised, Lion Capital will hold about 18 percent of American Apparel’s shares. plunge in the economy and the constriction of the lending environment. “In hindsight, The stock closed at $2.50 on Friday, meaning Lion Capital is already up $8 million on they might have planned a little smarter,” added Slater. its investment. Careful planning is foremost in Charney’s mind this year. “We plan to run the business The new shares have diluted Charney’s stake in American Apparel from just above for cash flow this year,” Charney noted, adding the company has a “restrained” plan for store 50 percent, to about 40 percent. The reduction could tame Charney’s “impetuous” na- openings to add to its current 260-unit base. A store will open in Las Vegas in the Miracle ture, said one analyst, which could help the company and soothe wary investors. Mile shops at Planet Hollywood in a few weeks, and Charney is aiming for units in New At close of markets today, American Apparel will release its fourth-quarter and Haven; Dresden, Germany; Dublin, and several sites in Canada, including Newfoundland. full-year 2008 earnings. Lazard Capital’s Slater is forecasting fourth-quarter earnings The Lion Capital deal also brings experienced financial professionals into the American per share of 7 cents, versus a loss of 2 cents in the year-ago quarter, on sales growth of Apparel fold, with Neil Richardson, a partner at the private equity firm, and Jacob Capps, a 33 percent, including a 52 percent jump in total revenue to $146.6 million. director, joining the retailer’s board. Richardson is a former general partner at leveraged — With contributions from Samantha Conti MEMO PAD Lauder, Beckman Honored at Beauty Ball NO MORE TOP BRASS: Will top editors who are removed from Time Inc. titles still be rewarded with a cushy job on the corporate side? That’s what insiders wondered after news of Jim Kelly’s retirement from Time Inc., as reported Friday by The New BEAUTY BEAT York Post. Kelly spent 28 years at Time, ending his tenure as managing editor Mix William Lauder, Richard from 2001 to 2006. He was then promoted to the corporate-level role of Time Beckman, the Black Eyed Peas and Vanessa Inc. managing editor. In that role, Kelly worked alongside Time Inc. editor in chief Williams, and what do you get? John Huey, setting policies on issues like standards and ethics, pre-publication One seriously hopping party with 500 peo- vetting of controversial stories and recruitment of outside editorial talent. ple at Cipriani 42nd Street in Manhattan. Insiders at Time Inc. have long perceived gigs on the 34th floor of Time Inc.’s Lauder, chief executive officer of the William Lauder, headquarters as a soft landing pad for editors who were uprooted from their top Estée Lauder Cos. Inc., and Beckman, Evelyn Lauder and jobs. Once there, editors have usually worked on projects with Huey until they president of the Condé Nast Media Group Leonard Lauder. either found a new job or left of their own accord. When Eric Pooley was removed and chief marketing officer of Condé Nast as Fortune managing editor, Huey said he would take on “an assignment [with Publications (parent company of WWD), That’s something that honoree Lauder — him and Kelly] that plays to his strengths in investigative journalism.” After a brief were the honorees at the 34th Annual March who was presented with his Beautiful Apple stint as Time editor at large, Pooley got a book deal and left the company. Scott of Dimes Beauty Ball, held Thursday eve- award by Allure editor in chief Linda Wells Mowbray, the former editorial director of Time4Media (which was sold to Bonnier ning. It raised more than $930,000 — an ap- — finds particularly gratifying. “I’m proud in 2007), was named Time Inc. executive editor eight months before the sale. He parent reflection of the bite of the recession, of what we do as an industry to support later became editor of Health.com, but left Time Inc. at the end of 2008. When since last year’s tally was $1.2 million. worthy causes like this one,” said Lauder, Rick Tetzeli was removed as Entertainment Weekly managing editor in January, The evening’s emcee, Williams, was back for whose grandmother, founder Estée Lauder, he was upped to Time Inc. editor at large and remains at the company. “It’s the a second year in that role. “I’ve been blessed as received the Beautiful Apple Award in 1978. holding pattern until they kick you out of there,” said one former Time Inc. editor. a mother,” said Williams. “I’ve had four healthy “Particularly in this type of economy, it’s But with the recession squeezing magazine publishers’ profits, the days of pregnancies and four healthy children.” wonderful to see so many people who are de- the 34th-floor fade-out may be disappearing. A Time Inc. spokeswoman said all Another speaker, Bayly Ledes, wasn’t voted to supporting philanthropy,” concluded of the editors in the corporate suite have specific duties and often move from quite as lucky. “After seven months of a pic- Lauder, who has taken a battering recently the 34th floor to various titles. “Time Inc. has a history of employing some ture-perfect pregnancy, I was rushed to the online and in the gossip columns. of the most gifted and accomplished editorial talent in the world,” she said. hospital, and after 24 hours of doctors trying Beckman — who was responsible for pro- “Anyone who believes corporate editorial jobs at Time Inc. are cushy clearly has to keep me pregnant, I gave birth to a 4-lb., curing the high-profile entertainment — was never held one.” — Stephanie D. Smith and Irin Carmon 3-oz. daughter. Isabelle was one of the lucky presented with his Beautiful Apple award ones — after 31 days in the neonatal inten- by Terry Lundgren, chairman, president and WHO’S INNOVATING IN A RECESSION?: Out with the conference, in with the summit. sive care unit, she began to thrive, and now, ceo of Macy’s Inc., who praised Beckman’s The New Yorker has jettisoned its two-year-old, two-day Innovation Conference, three-and-a-half years later, is happy, healthy varied accomplishments in both the publish- held at a symbol of more flush times — the Frank Gehry-designed InterActiveCorp. and hitting normal milestones. Your support ing and music worlds. building — with an equally exuberant price tag of $1,200. Instead, the magazine of this cause helps so many mothers to get “I am the father of three healthy kids,” will host a $350, one-day summit on President Obama’s first 100 days, with New the support that they need.” said Beckman, “two of whom are here to- Yorker writers interviewing the likes of Howard Dean, Nassim Nicholas Taleb, special night. But every four-and-a-half minutes, a envoy Richard Holbrooke, former national security adviser Zbigniew Brzezinski, author baby is born in the U.S. with a birth defect. Naomi Klein, and economist Jeffrey Sachs. We are so appreciative of your support, es- “These are different and unusual times we’re in, and I wanted the magazine to respond For more,more, pecially this year. Thank you for being here directly,” said director of special events Rhonda Sherman, adding, “It’s not going to be about see WWD.com. in such a time of uncertainty.” glamour. It’s about information and what we need now to deal with the times we’re in.” To wrap up the evening, the Black Eyed Both New Yorker editor David Remnick, who is writing a book about Obama and Peas — who will release a new album on race in America, and Washington correspondent Ryan Lizza, who is writing a book June 9 — performed for a rousing hour, about Obama’s first year, are participating, and Malcolm Gladwell is giving a keynote. which saw high-profile executives such Like most titles, the magazine (which is owned by WWD parent Condé Nast) as Lauder’s parents, Evelyn and Leonard could use the revenue stream: Media Industry Newsletter reported its ad pages Lauder, dancing in the aisles. At one highly were down 31 percent, to 189, through March 17. The New Yorker recently

steve eichner charged point, one of the performers, Taboo, scrapped plans to have 10 days of events as an extension of the annual New

by climbed down from the stage to confer a Yorker Festival in October, in its 10th anniversary this fall. The extra events were Terry Lundgren and high five upon the prancing Leonard. said to be the idea of then-publisher Drew Schutte, who left for a corporate digital Richard Beckman. photos — Julie Naughton role and was succeeded by Lisa Hughes. — I.C. 14 WWD, MONDAY, MARCH 16, 2009 WWD.COM Kilgour’s Brandelli FASHION SCOOPS VAL’S WALK-ON: Valentino will be the 13th recipient of the he whispered, reiterating there’s no truth in the ongoing Rodeo Drive Walk of Style award. The induction ceremony will speculation that he could design for Dior Homme. A few take place on the famed Beverly Hills street April 2, complete seats away sat Emanuel Ungaro designer Esteban Cortazar. Exits Creative Post with an outdoor exhibition themed in the designer’s signature Meanwhile, Vuitton chief Yves Carcelle said the brand’s giant red. The ceremony date was chosen to coincide with the West flagship on the Champs-Elysées would remain open seven By Emilie Marsh Coast premiere of the Matt Tyrnauer documentary “Valentino: days a week, despite a recent annulment of special permission The Last Emperor.” Since retiring in 2007, the designer has by the Council of State court. “It’ll be open on Sunday,” MILAN — Carlo Brandelli, the creative director for ven- kept up his globetrotting pace, and most recently visited Los Carcelle said, citing another authorization that isn’t affected erable Savile Row tailor Kilgour, has left the company, Angeles during Oscar Week, where he attended the Academy by the decision. And look out for Vuitton to abandon its slot at WWD has learned. Awards ceremony. the end of Paris Fashion Week and move up a few days next According to sources, Brandelli left due to strate- season. “Definitely earlier,” Jacobs said backstage. gic differences with Dubai-based JMH Group, which GUR DEPARTS OSSIE CLARK: Avsh Alom Gur has left his post as acquired Kilgour last year. creative director of Ossie Clark, the label that was relaunched MARINO MOMENT: Ermenegildo Zegna feted its new Tokyo In the late Nineties, Kilgour tapped Brandelli to by investor Mark Worth in February 2008. The decision was flagship Thursday evening, attracting the likes of Peter Marino, create the tailor’s first ready-to-wear collection, and it by mutual consent, according to industry sources. Worth, who who designed the store, as well as Japanese conductor redesigned its Savile Row shop to showcase the line. has an exclusive licensing deal with Alfred Radley, the clothing Yutaka Sado and a male model clad in a kimono made of He was appointed Kilgour’s creative director in 2003 manufacturer who purchased Clark’s business in 1968, is Zegna fabrics. Marino has a long roster of upcoming projects and, along with the likes of Richard James and Ozwald looking for a replacement, while Gur will refocus his attention including upcoming Zegna Global Stores in Hong Kong and Boateng, helped bring a new cool to Savile Row. on his signature collection. Neither Worth nor Gur could be Shanghai, Louis Vuitton flagships in London and Rome, and According to sources, Brandelli’s departure from reached for comment at press time. Gur’s Kilgour stemmed from the fact that he wanted to colorful, print-filled collections for Ossie continue to build on the brand’s fast-growing ready- Clark received mixed reviews over the past to-wear business, while JMH wanted him to focus on three seasons. His last collection for the bespoke tailoring. label is for fall. Signs the relationship could be under strain came earlier this year when Kilgour canceled its Paris show, BIG PLANS: Forever 21 will open its which raised eyebrows after the critical success of the first store in Japan next month but that label’s runway debut last year. Harajuku flagship is just the beginning of In 2007, Brandelli launched a more fashion-oriented the brand’s designs on the island nation. line building the Savile Row tailor into a fast developing The California-based fast-fashion brand luxury ready-to-wear business dressing the likes of Jude plans to open 50 stores in Japan over Law, Daniel Craig and Nick Knight. A second store, fea- the next few years, according to Jane Ha, turing a big stingray tank, was opened at 5 Savile Row in Forever 21’s director of stores. Ha was order to showcase Kilgour’s growing offering. in Tokyo last week to prepare for the big YUKIE KASUGA Brandelli was chosen as the British Fashion opening and do some research on the Peter Marino with A model in Council men’s wear designer of the year in 2005. neighborhood the brand will call home. She Anna and Gildo Zegna. a kimono. He could not be reached for comment. struck pay dirt: At one point, she popped PHOTOS BY into next door neighbor and rival Hennes Louise & Mauritz and inadvertently walked in on Bourgoin Chanel’s first freestanding beauty store in an in-store trend meeting of executives. Tokyo. Of the latter, he deferred talk on “They were just very open about having that the specifics but made his enthusiasm H&M Enters Russia discussion [during] the business hours so I known loud and clear. “I’m getting paid was able to listen in,” she said. very nicely and I’m very happy to be doing it,” he said, letting out a hearty belly laugh. With Unit in Moscow SHOWING OFF: In Louis Vuitton’s front More chuckles came later, when Marino By Alastair Gee row last Thursday, Marc Jacobs’ boyfriend and Anna Zegna mused on the Japanese Lorenzo Martone, clad in a black and day-glo preoccupation with business cards. “I ran MOSCOW — H&M’s first Russian store opened here pink Stephen Sprouse/Louis Vuitton T-shirt, out around 11 this morning,” he said. Friday with a scrum for discount coupons and lines of said he’s working on a video for American “They probably collect them like baseball up to 30 people clogging changing rooms. Eagle’s Martin + Osa brand that may be cards.” Meanwhile, Gildo Zegna pondered The Swedish fast-fashion giant is upbeat about its used for a viral campaign. On the hunt for the tough retail climate but kept up a brave prospects in the country, despite Russia’s poor eco- new faces for several projects, including face: “You have to keep a positive mind. nomic indicators and a chill on the retail scene that Baby Phat’s campaign, the Brazilian The good thing is that you have lows in has seen some shops close. advertising executive said Freida Pinto is America and [Japan] but you have highs in “H&M has historically not been that affected by his ideal woman. “She’s so beautiful, is China. God bless China!” recessions,” said Kristina Stenvinkel, the firm’s head totally approachable and has great skin; of communications. “We see this is as an opportunity she’d be perfect for a beauty campaign,” LET THE PAINT FLY: Yves Saint Laurent’s art when we can get good locations.” he enthused. British “It” girl, TV presenter works are once again courting controversy. The 32,000-square-foot store, located in a mall to- Alexa Chung, stood out in quirky, white- Andy Warhol’s painting of the late couturier, ward Moscow’s northern outskirts, is the first of three framed shades. Chung, whose campaign Alexa which had been hanging in “The Great planned for the Russian capital this year, and will be for retail chain New Look breaks later this Chung World of Andy Warhol” exhibition, which month, described her experience DJing at opens at the Grand Palais next week, has Wednesday evening’s Fendi party as “sheer been removed at the request of Saint fear. My computer crashed, so I didn’t have Laurent’s partner, Pierre Bergé. Bergé any of the CDs loaded that I needed. I just objected to the painting being displayed in had a load of Sixties, Shangri-Las stuff and the “Glamour” category alongside portraits they wanted Rihanna. I didn’t have the tools of Helene Rochas and Sonia Rykiel and of the trade,” she said. requested its removal. French daily Le Weather girl-turned-actress Louise Monde on Friday reported that Bergé told Bourgoin said she’s been dressing up for exhibition organizers: “You can’t mix chalk her latest role in the thriller “Blanc Comme and cheese.” The four-panel painting, made Neige” (“White as Snow”) alongside from a series of Polaroids and completed venerable actor François Cluzet. “I play the in 1972, was one of the only works not put H&M in Moscow. wife of a very rich man, who wears lots up for sale in the record-breaking YSL art of showy outfits,” Bourgoin said, adding auction last month. “We are really sorry Zuhair Murad evening dresses figure in not to be able to show the portrait of Yves complemented by one in St. Petersburg in 2010. H&M the wardrobe. Actress Gong Li will hit the STEPHANE FEUGERE Saint Laurent,” said a spokeswoman for is planning 225 global openings this year, up from 196 big screen in “Shanghai” in September. BY the Grand Palais on Friday. “This exhibition last year, Stenvinkel said. Keeping the rumor mill active, Gareth Pugh represents three years of work.” Bergé

Moscow has seen an invasion by mass market also popped up in the front row. “Shh,” PHOTOS couldn’t be reached for comment. brands: Gap and New Look have recently opened, while Topshop entered the market in late 2006. Analysts say such firms, with their attractive price points, are better positioned to weather the economic Shabby Chic Liquidation Sales Set to Start crisis. That’s not to say they’re guaranteed success, however. All Diesel and Kookai stores are to close in By Matthew Lynch Inc., which operated the Shabby Chic business. Moscow after their management cited various difficul- In a filing dated March 3, lawyers said Ashwell herself ties, as are some luxury boutiques. After quietly filing for Chapter 11 protec- was the only party interested in keeping Shabby Chic alive H&M had for years been battling in court for control tion in January, liquidation sales are imminent for the as a going concern but had not entered a bid. According to over its brand name in Russia, which was registered by a business operations of Shabby Chic, domestic designer court documents, the company owed its three groups of se- Russian, Boris Kostyrin. The retailer won the case in 2007. Rachel Ashwell’s home furnishings brand. cured creditors between $27.7 million and $28.8 million. The Moscow unveiling was festive. After the ribbon cut- Following a hearing in federal bankruptcy court in Founded by Ashwell in 1989, Shabby Chic grew to in- ting by H&M chief executive officer Rolf Eriksen at noon, Los Angeles on March 9, Judge Thomas Donovan autho- clude a small network of stores across the country and waiting customers surged forward and overwhelmed an rized Hilco Merchant Resources LLC to conduct closing a line with Target. Though best known for its boho take attendant offering 1,000-ruble ($29) discount coupons. sales and liquidate inventory at eight remaining Shabby on home decor, the brand occasionally branched out to “It’s a great time to open,” said Masha Kapraru, a Chic retail locations, a distribution center and a manu- fashion, such as a sleepwear line launched in 2004. 20-year-old student. “Who doesn’t need cheap clothes facturing center. The assets up for sale do not include The company’s bankruptcy counsel did not return a right now?” the intellectual property of Rachel Ashwell Designs call for comment. WWD, MONDAY, MARCH 16, 2009 15 WWD.COM Financial January Imports Fall to 5-Year Low for Month

By Kristi Ellis “What’s happening is clearly companies are mak- SME compared with January 2008. Apparel imports ing adjustments or lowering expectations for demand from China were down 2.8 percent to 592 million WASHINGTON — The deepening global recession drove in the summer,” said Richard Yamarone, director of SME, and textile imports fell 4.7 percent to 1 billion down textile and apparel imports to the U.S. in January economic research at Argus Research Corp. “There SME against a year earlier. to the lowest level for that month in five years. probably aren’t a lot of bathing suits on those barges, Shipments of textiles and apparel from Canada post- The Commerce Department’s Office of Textiles & simply because they don’t anticipate a great summer ed the largest drop — a 28.9 percent decline compared Apparel said Friday that textile and apparel shipments sale season. I think you will see pretty lean shelf space with the same month a year ago to 93 million SME. to the U.S. fell 8.9 percent to 3.7 billion square meters over the coming months.” Imports from Mexico fell 21 percent to 163 million SME equivalent in January compared with the same month The top five apparel importers in January were and shipments from Honduras dropped 16.2 percent to a year ago. Textile imports dropped 10.3 percent to 2.1 China, Vietnam, Bangladesh, Honduras and Indonesia. 63 million SME. billion SME, and apparel imports fell 7 percent to 1.65 China topped the list of textile supplies, followed by Vietnam continued to attract more production from billion SME. Pakistan, India, Mexico and South Korea. other Asian countries, increasing apparel and textile It was the ninth consecutive month in which industry But many of the top suppliers posted import de- shipments to the U.S. by 29 percent to 183 million SME. imports declined on a year-over-year basis. The over- clines in the face of sagging global demand for ap- India raised shipments by 5.2 percent to 249 million all trade deficit narrowed 9.7 percent to $36 billion in parel and home furnishings. Imports of apparel and SME and Bangladesh boosted its imports 3.1 percent to January from $39.9 billion in December. textiles from China fell 3.99 percent to 1.6 billion 149 million SME. UNITE HERE Board

Moves to Curtail 17B1=;;3@17/:A3@D713A Breakaway Group WASHINGTON — In the latest salvo in the battle between two factions of UNITE HERE, the union’s general executive board voted Friday to revoke the charters of the 15 joint boards that voted to disaffiliate, recover all property of the joint boards and take immediate legal action against their managers. The general executive board, 4/A67=@=B31B7=<           230B @3AB@C1BC@7<5           7;>=@B3F>=@B477B/: tions and said Raynor’s actions – '17B5`]c^7\Q17BbVS17BZ]U]O\R1O^WbOZ@SRSTW\SRO`S`SUWabS`SRaS`dWQS[O`Ya]T17B5`]c^7\Q and those of the joint boards are illegal and in violation of the union’s constitution. — K.E. 16 WWD, MONDAY, MARCH 16, 2009

Financial Falling Market Caps Add to Uncertainty

By Arthur Zaczkiewicz Clockwise from month recorded fourth-quarter charges of $813.2 million to write down goodwill left: Macy’s could related to the acquisitions of Nine West DECLINING MARKET CAPITALIZA- write off up to $5.5 and Maxwell Shoe Co. Inc., plus anoth- tions, a direct reflection of the recent fall billion of goodwill; er $25.2 million for trademark impair- in stock prices, are wreaking havoc on Jones Apparel ment, on its way to a $822.9 million net fashion companies’ earnings and financ- wrote down $813.2 loss. And Macy’s Inc. has $9.12 billion ing arrangements, and the worst might be million based on in goodwill on its books, of which the yet to come. acquisitions, company said $4.5 billion to $5.5 billion For many public companies, the including Nine West; could be written off. problem has been compounded by — Liz Claiborne’s Jones’ shares have fallen 73.9 percent and is at the same time linked to — stock descent led to in the last year, leaving it with a mar- weakening balance sheets and dete- a $683 million ket capitalization of $301.5 million as of riorating financial results. Companies impairment charge. in the unhappy position of being worth Friday, and Macy’s stock has slipped 64.2 less in the eyes of investors just as the percent as the total value of its shares financial cushion of cash on hand dwin- outstanding fell to $3.5 billion. dles face steep impairment charges According to two credit analysts, and further erosion of their credit rat- there are over 420 public companies ings as well as increasingly less inter- for which market capitalizations are est from investors in their stocks. both greater than $5 million and less A decline in market capitalization, or than net current asset values. the aggregate value of all of a company’s Analysts said companies that need to outstanding shares, also threatens the shore up their balance sheets the most financial performance covenants tied are smaller and midcap companies to bank loans and can precipitate del- with sales greater than $600 million isting from stock exchanges. Although a year but cash and cash equivalents the New York Stock Exchange has loos- below $100 million in the most recent ened its minimum market capitalization quarter. The concern is these types of requirements and several major banks firms can burn through cash quickly are now taking market volatility into under current market conditions, with consideration before cutting off financ- cash flow already limited due to their ing or making it more expensive, the larger operating size. impact has been severe. According to Capital IQ, a research Industry analysts and experts de- tool of Standard & Poor’s, companies scribe the current harsh business con- that fit into this category include: Saks ditions as “unprecedented” and expect Inc., with $10.3 million in cash and $3 the number of distressed companies billion in sales; Dillard’s Inc., with and bankruptcies to soar over the next $96.8 million in cash and $6.8 billion six to eight months. Analysts say public in sales; Nordstrom Inc., with $72 mil- companies with weak balance sheets lion in cash and $8.3 billion in sales; and depressed stock prices are the The Talbots Inc., with $21.8 million in most vulnerable. cash and $2.2 billion in sales; Pacific A case in point is Liz Claiborne Inc., which posted a ger ones — might be too busy keeping their own ships on Sunwear of California Inc., with $4.8 million in cash $683 million goodwill impairment charge and a $828.9 course. and $1.4 billion in sales, and Eddie Bauer Holdings Inc., million net loss in the fourth quarter that was mostly One investment banker described assets of Liz with $3.6 million in cash and $1 billion in sales. due to market capitalization that fell below book value. Claiborne as ripe for acquisition by a strategic player Among the companies feeling the sting of fourth- Goodwill is the value placed on acquired brands and who has a stronger balance sheet. “VF Corp. is a good quarter impairment charges so far are Saks, Dillard’s, businesses and needs to be adjusted regularly by ac- candidate to look at assets of Liz Claiborne,” the banker AnnTaylor Stores Corp., Pacific Sunwear of California, countants to keep market capitalization and sharehold- speculated. Chico’s FAS Inc., The Bon-Ton Stores Inc. and ers’ equity in relative balance. Analysts say the charges Liz Claiborne faced in the Frederick’s of Hollywood Group Inc., to name just a few. At below $2 a share, less than a tenth of its 52-week fourth quarter are likely to be seen across the sector as, Last week, privately held Neiman Marcus Inc. reported high of $22.12 last September, Claiborne’s stock is at its even after a strong performance last week, the bear mar- that $560.1 million in impairment charges led it to a lowest level ever, giving it a total market capitalization of ket eats up stock values, which are at levels not seen in $509.3 million net loss in its second quarter. just $178.9 million. This could expose the company to take- decades. Is there any silver lining in these dark clouds? over possibilities. Then again, competitors — even stron- Claiborne’s rival Jones Apparel Group Inc. last Perhaps just a sliver. Marc Blazer, president of Overture Acquisition Corp., a special purpose acquisitions company (SPAC) based in New York, said he expects to see We Take the Risk more firms take impairment charges like Liz Claiborne did, “as I feel we’ll see a lot of Out of Credit Risk companies trading below book, regardless of sector.” Blazer Growth opportunities sometimes require taking on credit risk that is larger added that consolidation in the than your balance sheet allows. For over 70 years, mid-size and large market will likely increase as a result. SPACs are pooled invest- businesses have relied on Rosenthal & Rosenthal to manage credit risk wisely ment vehicles that allow public and to provide timely financing for growth. We specialize in providing credit market investors to join in on in- protection, collection of accounts receivable, letters of credit, international vestments in private equity type deals, such as leveraged buyouts factoring and other financial solutions for businesses in manufacturing, or, in the current economy, a dis- import/export, distribution, and licensing. We make decisions quickly, tressed situation. without bureaucracy, and provide accessibility to our key decision makers. For his part, Blazer said his firm is “looking at some very Domestic & International Factoring—Letters of Credit interesting opportunities” in Working Capital Loans—Term Loans—Collateral Management Services the apparel and retail space. “We’re seeing some great com- panies, with good performance, but facing near-term liquidity issues and are thus trading at punishing multiples,” Blazer ex- plained. “So we do expect to see some consolidation. However, in our case, we are not necessarily interested in control. We want to find good companies, with good NEW YORK LOS ANGELES SHANGHAI management teams that we can add value to, without needing to For a confidential consultation, please contact Michael Stanley: run their business.” 212 356-1497 or [email protected] Blazer said, “Between Paul ROSENTHALINC.COM Pressler and Domenico De Sole on one hand, and our financial WWD, MONDAY, MARCH 16, 2009 17 WWD.COM Financial talent on the other, we feel we can add a lot of value to Van Sinderen said the key concerns are significantly Given the steep decline of stock values and market many companies. We want to partner with companies lower market capitalization and enterprise values, am- capitalizations, one would expect a flurry of takeovers and management teams that are otherwise perform- plified by a smaller investment pool. right now. Van Sinderen says companies might be just ing well, but need capital to execute on their vision, “The days of using stock as a form of currency are waiting for multiples and valuations to drop even lower survive in this market, and be well-positioned for the over,” he added. and, although the market favors buyers over sellers, it’s eventual recovery.” Telsey and Van Sinderen said these conditions should hardly a classic buyer’s market. Pressler, former chief executive officer of Gap Inc., force companies to adopt strategies that involve: “We have not seen a real pick-up in hostile activity in serves on the board of Overture while De Sole, former t
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DPODFQUT equity community is without a financing market to sup- to start with an improvement in the employment pic- tRenegotiation of mall leases to lower rent. port doing deals with leverage. I think a strategic [buyer] ture, which would boost consumer confidence and drive Telsey and Van Sinderen said the name of the game with a strong balance sheet could use this environment spending, leading to better top-line results, eventually is controlling the balance sheet. “Protecting the balance as a time to do their ‘dream deal,’ but that is not without improved margins and profits and ultimately greater in- execution risk. It also requires courage, which is hard to vestor confidence. come by when there is continued uncertainty.” On the brighter side, retailers will be facing easier Telsey stressed that much hinges on consumers, who same-store sales comparisons this fall as the beginning The days of are worried over the short-term prospects of employ- of the steep downturn in spending marks its one-year “ ment while also seeing their pensions evaporate as the anniversary. And for companies with stronger balance using stock as a stock market has tanked. sheets (as well as some select private equity firms and Robin Lewis, vice president and head of retail verti- blank check firms such as Blazer’s), the distressed con- form of currency cal for Vantage Marketplace, a subsidiary of Goldman ditions in the market translate to lots of opportunity to Sachs, said he has trouble getting over the fact that the buy assets at fire-sale prices. are over. market has not found a bottom yet. In the meantime, companies have to put themselves ” “Forget the word ‘recovery,’” Lewis said. “First, we into a purely defensive mode, analysts say. And that — Jeff Van Sinderen, have to get to the bottom.” means retailers need to continue to close stores while B. Riley & Co. LLC &WFO
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suppliers need to reduce costs across the board. a bottom. He sees this recession as a permanent shift in “The volatility of the market and the lack of demand consumer habits. “Things will certainly not be what they for [retail, apparel and luxury] stocks are at levels never sheet should be a high priority,” Van Sinderen said, add- used to be,” Lewis added. seen before,” said Dana Telsey, chief research officer and ing companies such as Saks might have to consider re- Craig R. Johnson, president of Customer Growth founder of Telsey Advisory Group, who added that it is un- structuring while suppliers such as Liz Claiborne might Partners, puts the chance of recovery at 25 percent in clear when the market will shift. “It’s a work in progress. need to sell assets. the fourth quarter of this year, 50 percent in 2010, and And it is unprecedented in terms if the levels of promo- “From a corporate-finance perspective, a depressed 25 percent in 2011. “So we think the probability of sig- tions [at retail] and how long this [bear] market will last.” trading value puts a damper on raising additional eq- nificant retailer takeovers, despite great values, is low Jeff Van Sinderen, analyst at B. Riley & Co. LLC, uity or using shares to make an acquisition,” said Gayle now, but will rise as the year proceeds — if capital mar- said more companies are going to experience what Liz 5VSL
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kets return to health, and if [President] Obama doesn’t Claiborne dealt with in regard to the stinging impact of a confidence perspective, a depressed stock price and punish capital creation,” Johnson said. steep impairment charges triggered by depressed mar- difficult operating environment certainly don’t help an Blazer added, “I can’t tell you when we will see ket capitalization. executive’s desire to be aggressive on new investments. an economic recovery, and as long as investors are “You’re going to see more of this because assets — That said, good companies with strong balance sheets gripped by that same uncertainty, valuations will re- acquisitions that were over the past several years — are and ample liquidity should still be investing prudently main depressed. What I do believe is that we’ll need not worth what they once were,” Van Sinderen said, in growth where there is an opportunity to gain share to see two or three quarters of at least moderation in adding that costs relating to discontinued lines or op- and use the current environment as a means to secure a decline, or signs of growth before valuations begin a erations will also weaken results. stronger market position.” gradual return to historic norms.”

Financial strength has always been our foundation.

The best service builds on a solid foundation. Since 1936, through both robust and challenging times, Milberg Factors has been a trusted fi nancial partner. As both our business and our clients’ businesses have expanded, and as the services we provide have become more varied and complex, we have maintained our independence by staying true to our core values of integrity, prudence and fi nancial strength.

In turbulent times, stability and focus are the keys to success. We have been steadfast in meeting our clients’ needs for over seven decades. When you’re in the market for factoring or asset-based fi nancing and want a strong fi nancial partner, call us. We are ready to respond.

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Call Dan Milberg, SVP, NY 212.697.4200 Dave Reza, SVP, LA 818.649.8662

©2009 Milberg Factors, Inc. 18 WWD, MONDAY, MARCH 16, 2009 WWD.COM Financial For full daily stock changes, see WWD.com. WEEKLY STOCKS 52-WEEK VOLUME AMT 52-WEEK VOLUME AMT 52-WEEK VOLUME AMT High Low Companies P/E Last Change High Low Companies P/E Last Change High Low Companies P/E Last Change 80.50 13.66 Abercrombie & Fitch (ANF) 6.7 19511155 21.43 3.94 21.79 3.93 Elizabeth Arden (RDEN) - 763613 4.73 0.44 38.65 6.61 Nordstrom (JWN) 8.3 31815752 15.55 3.39 26.78 8.50 Acadia (AKR) 14.3 1430615 11.29 2.39 54.75 19.81 Estée Lauder (EL) 10.2 9855710 22.14 1.48 11.60 5.95 Orchids Paper (TIS) 18.8 41254 10.75 0.65 3.78 0.43 Aeffe * (AEF:IM) 6.6 516974 0.47 0.01 32.50 18.00 Family Dollar (FDO) 18.3 21371521 31.52 1.16 29.88 3.14 Oxford (OXM) 4.6 673292 4.51 1.01 37.40 12.52 Aéropostale (ARO) 12.0 22776501 25.23 2.71 12.43 3.42 Finish Line (FINL) - 2477625 5.40 0.89 14.04 0.72 Pacific Sunwear (PSUN) - 3830691 1.31 -0.01 29.40 19.32 Alberto Culver (ACV) 9.9 3421641 22.81 1.38 37.98 11.00 Fossil (FOSL) 6.7 2778572 13.61 1.86 7.15 0.59 Parlux Fragrances (PARL) - 884397 0.85 0.22 10.25 1.20 American Apparel (APP) 4.3 4575285 2.50 0.91 2.80 0.12 Frederick’s of Hollywood (FOH) - 125458 0.25 0.07 27.88 2.20 Penn Real Estate (PEI) - 6969816 3.49 1.02 19.42 6.98 American Eagle (AEO) 7.3 38446337 10.34 1.43 15.91 8.22 Freds (FRED) 40.8 1236187 10.43 0.77 29.27 3.40 Perry Ellis (PERY) 3.6 449658 4.18 0.24 29.23 2.41 Ann Taylor (ANN) 4.8 22450722 3.43 0.02 196.75 30.00 French Connection * (FCCN:L) 162.9 595051 51.00 2.50 47.94 13.04 Phillips-Van Heusen (PVH) 5.5 5557354 17.19 2.63 420.00 112.50 Asos * (ASC:L) 33.8 1407326 290.00 -27.25 21.89 9.41 Gap (GPS) 8.6 51541222 11.99 2.14 2.05 0.15 Phoenix Footwear (PXG) - 5376 0.16 -0.04 45.34 14.40 Avon (AVP) 8.2 27621571 17.15 1.47 44.23 0.24 General Growth (GGP) 4.4 26399429 0.64 0.31 82.02 31.22 Polo Ralph Lauren (RL) 7.9 7954561 36.73 4.19 12.66 4.57 Bebe (BEBE) 11.2 1896637 5.21 0.39 38.74 10.37 Genesco (GCO) 3.0 2286553 15.67 2.09 141.50 31.06 PPR * (PP:PA) 11.5 4386982 48.93 2.20 56.72 29.42 Beiersdorf * (BEI:HM) 13.0 5511523 32.30 1.46 23.00 3.24 G-III Apparel (GIII) 3.6 278542 3.97 0.49 29.73 10.35 PriceSmart (PSMT) 11.4 337074 17.25 1.20 13.30 4.30 Benetton Group * (BEN:MI) 6.1 1139030 5.07 0.39 39.29 5.66 Gildan Activewear (GIL) 7.2 7392899 7.46 1.57 10.67 0.80 Quiksilver (ZQK) - 5407539 0.94 -0.05 4.98 0.20 Birks & Mayors (BMJ) 0.3 4500 0.24 0.04 13.46 0.75 Glimcher (GRT) - 1352599 1.40 0.32 8.84 4.85 R.G. Barry (DFZ) 6.7 34347 5.75 0.17 44.29 27.26 BJs (BJ) 13.4 15852512 29.40 -0.93 38.15 15.32 G&K (GKSR) 10.3 401398 17.64 1.87 24.10 3.45 Ramco-Gershenson (RPT) 2.2 1397768 5.06 1.18 0.29 0.03 Blue (BLHI) - 573 0.04 0.00 0.96 0.06 Gottschalks (GOTTQ) - 130825 0.08 -0.04 73.55 20.72 Regency Centers (REG) 16.0 15877109 28.07 6.05 5.50 0.32 Bluefly (BFLY) - 22858 0.90 0.15 45.15 10.26 Guess (GES) 6.3 9925918 15.12 1.83 6.93 0.90 Retail Ventures (RVI) 1.4 446763 1.98 0.32 10.50 0.76 Bon-Ton (BONT) - 270621 1.34 0.14 47.69 14.02 Gymboree (GYMB) 5.9 6701764 18.48 2.93 14.85 2.32 Revlon (REV) 2.3 588062 2.58 -0.06 18.44 2.04 Brown Shoe (BWS) 2.9 4520199 2.53 0.26 12.80 1.50 Hampshire (HAMP) - 46995 4.99 0.20 83.00 14.18 Richemont * (CFR:VX) 3.8 18229849 16.67 2.23 44.57 13.57 Buckle (BKE) 12.7 7929683 27.59 4.65 37.73 5.14 Hanesbrands (HBI) 6.2 13559202 9.05 2.91 41.56 21.70 Ross Stores (ROST) 14.6 14706376 33.01 3.56 11.48 2.83 Bulgari * (BUL:MI) 10.6 13467088 2.93 -0.17 0.53 0.01 Hartmarx (HTMXQ) - 348431 0.02 0.00 3.72 0.28 Safilo * (SFL:MI) 6.8 7453867 0.34 0.02 686.50 154.75 Burberry * (BRBY:L) 7.9 14282454 265.00 20.75 433.50 239.50 Hennes & Mauritz * (HMB:ST) 17.2 19455518 318.50 10.00 14.58 1.50 Saks (SKS) - 36288326 1.78 -0.16 16.29 4.18 Cabela’s (CAB) 7.7 2340281 8.68 0.63 131.89 59.42 Hermès * (RMS:PA) 25.4 946668 70.75 0.42 112.80 26.80 Sears (SHLD) 93.5 5822764 40.00 4.47 14.86 1.41 Caché (CACH) 10.5 310628 1.93 0.15 9.89 4.04 Hot Topic (HOTT) 21.5 9695926 8.92 0.45 106.43 24.27 Simon Properties (SPG) - 63900948 34.73 8.54 54.20 22.06 Carrefour * (CA:PA) 14.4 26707412 26.05 3.16 21.09 13.23 IAC Interactive (IACI) 15.0 11735430 14.59 0.48 25.20 5.20 Skechers (SKX) 4.5 3392118 5.78 0.07 22.35 11.94 Carter (CRI) 14.1 6322773 18.28 1.98 19.23 5.11 Iconix (ICON) 6.7 3810079 8.02 0.86 3.37 0.13 Sport-Haley (SPOR) - 243363 0.22 -0.03 4.95 0.26 Casual Male (CMRG) - 663657 0.40 0.10 53.90 23.29 Inditex * (ITX:MC) 12.7 10412828 25.73 0.44 6.47 0.99 Stein Mart (SMRT) - 286049 1.45 0.37 19.38 11.30 Cato (CTR) 15.6 1051229 15.71 2.25 19.96 3.50 Inter Parfums (IPAR) 4.5 784187 4.40 0.21 29.00 13.37 Steve Madden (SHOO) 10.2 1470203 15.74 1.20 27.55 1.92 CBL (CBL) 17.3 15152113 2.66 0.57 1.96 0.16 IT Holding * (ITH:MI) - 0 0.18 0.00 76.50 23.05 Swatch Group * (UHRN:SW) - 651527 26.30 1.70 9.50 2.05 CCA (CAW) 4.3 48832 2.32 0.06 50.35 8.02 J. Crew (JCG) 7.6 13171941 11.38 2.10 17.86 4.22 Syms (SYMS) - 34727 5.79 0.80 1.40 0.18 Charles & Colvard (CTHR) - 44047 0.29 0.03 46.56 13.71 J.C. Penney (JCP) 4.7 27200267 16.44 2.22 17.97 1.19 Talbots (TLB) - 1992550 3.06 0.24 20.34 3.98 Charlotte Russe (CHIC) 73.0 1907210 6.56 0.96 7.70 2.00 Jaclyn (JCLY) - 0 3.25 0.00 6.99 1.25 Tandy Brands (TBAC) - 19854 1.60 -0.03 6.35 0.45 Charming Shoppes (CHRS) - 4019231 0.98 0.50 1.67 0.22 Joe’s Jeans (JOEZ) 2.7 229236 0.26 -0.01 3.37 1.55 Tandy Leather Factory (TLF) 7.9 19133 2.05 0.20 82.00 52.14 Chattem (CHTT) 16.2 2970387 56.47 -2.81 22.12 2.34 Jones Apparel (JNY) - 9250929 3.53 0.79 46.30 24.62 Tanger Factory Outlet (SKT) 42.1 4941659 29.83 3.44 36.97 11.29 Cherokee (CHKE) 9.6 173457 15.78 2.51 50.58 15.38 Jos. A. Bank (JOSB) 8.8 2755949 26.70 6.44 59.55 25.00 Target (TGT) 10.0 69177320 29.97 4.32 8.53 1.72 Chico’s (CHS) - 14013724 5.13 1.10 19.74 4.89 Kenneth Cole (KCP) - 337745 5.98 0.41 0.77 0.21 Tarrant Apparel (TAGS) - 365422 0.70 -0.04 43.40 16.45 Children’s Place (PLCE) - 3621153 21.41 1.27 47.80 6.33 Kimco Realty (KIM) - 58716330 9.18 2.17 92.35 12.43 Taubman (TCO) - 12388922 18.11 4.55 12.19 2.46 Christopher & Banks (CBK) 58.1 793115 4.27 0.76 56.00 24.28 Kohl’s (KSS) 13.3 41058836 38.22 3.72 3.65 0.18 Tefron (TFRFF) - 0 3.25 0.00 33.73 18.09 Cintas (CTAS) 9.9 7799611 20.95 2.49 20.76 6.44 K-Swiss (KSWS) 7.4 966295 7.35 0.36 49.98 16.70 Tiffany & Co. (TIF) 8.3 15970833 19.68 2.47 28.12 7.01 Citi Trends (CTRN) 12.9 559316 14.26 2.65 17.85 7.00 LaCrosse Footwear (BOOT) 7.0 12079 8.27 1.17 19.41 7.19 Timberland (TBL) 14.3 1691523 10.73 1.58 37.64 11.41 Coach (COH) 6.6 45979434 14.69 2.89 22.16 5.98 Limited Brands (LTD) 4.8 28566427 8.23 1.97 37.52 17.80 TJX Cos. (TJX) 11.8 31262429 24.84 3.35 8.31 0.91 Coldwater Creek (CWTR) - 2214216 1.91 0.24 20.33 1.46 Liz Claiborne (LIZ) - 8524457 1.89 0.11 64.48 25.23 Tod’s * (TOD:MI) 11.0 331932 30.09 1.79 80.49 54.36 Colgate Palmolive (CL) 15.4 19277332 57.62 1.57 3.99 0.35 LJ Intl. (JADE) 5.9 120838 0.48 -0.01 31.82 7.80 True Religion (TRLG) 5.2 3377239 9.63 1.45 21.00 3.85 Collective Brands (PSS) 17.4 11984137 8.43 0.08 99.97 46.00 L’Oréal * (OR:PA) 14.6 7473692 51.18 4.23 27.37 1.01 Tween Brands (TWB) - 2842726 1.63 0.56 49.49 24.63 Columbia Sprtswr (COLM) 10.6 925021 29.33 3.60 37.33 4.33 Lululemon (LULU) 9.8 2612251 6.36 1.86 43.52 11.94 Under Armour (UA) 20.1 4825332 16.14 3.81 75.23 38.17 Costco (COST) 14.0 33343837 42.20 3.22 26.66 9.41 Luxottica * (LUX:MI) 12.0 8500555 10.15 0.46 5.43 0.44 Unifi (UFI) - 1811920 0.61 0.00 21.34 0.79 Crocs (CROX) - 4494957 1.36 0.17 89.36 38.10 LVMH * (MC:PA) 11.3 10690162 48.39 3.67 34.89 16.95 Unilever (UL) - 7589613 18.22 0.33 0.18 0.02 Cygne Designs (CYDS) - 3900 0.04 0.00 76.50 6.00 Macerich (MAC) - 19899157 8.54 1.37 38.40 12.33 Urban Outfitters (URBN) 13.9 23750479 17.28 3.15 146.60 37.24 Deckers Outdoor (DECK) 8.0 3191552 45.54 5.63 27.08 5.07 Macy’s Inc. (M) 12.6 74978355 8.33 1.39 84.60 38.22 VF Corp. (VFC) 9.8 5991909 53.59 5.94 3.50 1.38 Delia’s (DLIA) 177.0 712291 1.70 0.27 17.59 6.25 Maidenform (MFB) 7.0 539585 8.47 -0.01 28.88 6.39 Volcom (VLCM) 9.5 1068150 8.40 1.56 Document4 7/11/038.39 5:59 2.09 PM Delta Page Apparel 1 (DLA) 6.8 9462 4.06 0.17 669.00 191.90 Marks & Spencer * (MKS:L) 6.1 70368352 246.25 7.25 63.85 46.25 Wal-Mart (WMT) 14.4 129253530 49.19 0.28 18.47 4.42 Destination Maternity (DEST) - 24964 4.72 -1.07 27.64 8.33 Men’s Wearhouse (MW) 10.0 10274550 14.08 4.35 53.89 12.22 Warnaco (WRC) 10.9 7271014 19.69 2.38 45.66 1.38 Developers Diversified (DDR) - 46086015 1.89 0.37 26.17 4.65 Movado (MOV) 3.6 965940 6.25 1.21 40.00 7.96 Weingarten (WRI) 7.9 13141684 10.49 2.06 23.11 2.50 Dillard’s (DDS) - 4204813 4.83 1.64 25.00 10.03 National Retail Prop. (NNN) 11.4 10762317 14.80 1.84 5.54 1.85 Wet Seal (WTSLA) 7.3 2787890 2.82 0.39 17.93 6.16 Dress Barn (DBRN) 9.8 3615638 11.32 1.94 12.12 0.82 New York & Co. (NWY) 9.9 1814069 2.50 0.40 41.99 20.11 Weyco (WEYS) 16.6 127241 24.42 3.95 19.19 6.66 DSW (DSW) 9.7 1942038 8.45 1.52 0.10 0.05 NexCen (NEXC) - 664543 0.08 0.01 31.21 13.15 Wolverine (WWW) 7.3 3271610 14.10 0.73 16.65 7.09 Duckwall-Alco (DUCK) - 3744 9.25 0.47 70.60 38.24 Nike (NKE) 11.9 25077472 44.67 4.73 30.89 0.89 Zale (ZLC) - 1922938 1.11 0.14 8.72 0.30 Eddie Bauer (EBHI) - 136278 0.66 0.09 0.75 0.02 Nitches (NICH) - 26590 0.03 0.00 28.84 4.50 Zumiez (ZUMZ) 8.7 2626034 6.90 0.47 Retail Stocks Up 14.8% WEEKLY FOLLOWING THE MAJOR INDICES, RETAIL shares extended their rally to a fourth day CHANGE Friday, racking up a 14.8 percent gain for the ENDING WWD week as the broader stock market rebounded ( MARCH 13 ) from 11-year lows. % INDEX The S&P Retail Index advanced 1.4 per- cent, or 3.63 points, on Friday to 262.69 in the Gainers Change week’s final trading session, outpacing the Charming Shoppes 104.17 COMPOSITE Dow Jones Industrial Average, which rose 0.8 percent, or 53.92 points, to 7,223.98. Despite General Growth 93.94 636.60 the recent turnaround, retail shares still American Apparel 57.23 have lost 35.3 percent of their value over the Tween Brands 52.34 last six months as the Dow fell 36.8 percent. Investors were mollified last week by Dillard’s 51.41 relatively decent retail sales in February — down a seasonally adjusted 0.1 percent from the preceding month — and news that major Decliners Change banks started 2009 with several profitable Phoenix Footwear -19.05 months. But the global recession, tense eco- Destination Maternity -18.48 nomic relations with trading partners such as China and untested stimulus and bailout Sport-Haley -13.93 plans from Washington mean the markets Asos * -8.59 will likely remain in flux for some time. 40.07 Among the biggest retail winners in Saks -8.25 Friday’s trading was American Apparel Inc., which saw its stock shoot up 67.8 percent to * Editor’s note: European stocks are quoted in the currency of $2.50 after private equity firm Lion Capital their principal exchanges. Shares on the London Stock Exchange injected $80 million into the business. are quoted in pence, Richemont and The Swatch Group are Charming Shoppes Inc. also saw gains, up quoted in Swiss francs and Hennes & Mauritz is quoted in 19.5 percent to 98 cents. Swedish kronor. All other European stocks are in euros. — Evan Clark WWD, MONDAY, MARCH 16, 2009 19 WWD.COM/CLASSIFIEDS Professional Services For more career opportunities log on to fashioncareers.com. 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Serious inquiries Ralph Lauren, Polo, Tommy Hilfiger, Production (Import) Evening dress mftr. seeks an aggressive Call Domenico 212-9449180 w/your co info to: [email protected] Quiksilver, Baby Gap, etc. Exp. Must speak and write Mandarin exp. sales executives. Must have current [email protected] 973-564-9236 for Junior Accessory Co. located in relationships w/dpmt. stores, cataloges Midtown. For overseas purchasing & boutiques. Fax or email resumes to: Email resume and sal. Req: 212-398-0654 / [email protected] Designer $80-100K BOE. Strong exp in [email protected] boys infant toddler. Must hang with Ralph Lauren, Polo, Tommy Hilfiger, Quality Assurance Mgr to $95K. Over Quiksilver, J. Crew etc. see quality and compliance docs. and test - [email protected] 973-564-9236 SENIOR SALESPERSON ing requirements for fabric. Thru finished Needed F-T or P-T. Must Have Incredi- products. Exp in home furnishings or apparel ble love of Women’s Fashion and great To subscribe, visit our website co. required. Must be able to live and work in work ethic. Must have experience in DESIGNER Shanghai. Bilingual required. women’s multi brand designer and Boys import co. seeks creative & moti- [email protected] 973-564-9236 contemporary sales in Manhattan. www.wwd.com/subscribenow vated 4-18 designer W/5 yrs exp work- Must have a customer list. References Couture Dress Maker ing W/knits, wovens, denim. Must be Samplemaker to $50K. Current strong exp required. Hourly wages and commission. Samplemaker and Alterations or call 800.289.0273 organized, self starter, proficient in in bras required. Knowledge underwire, etc . Valerie Feigen 15 years fashion experience. Illust, excellent communication skills. Must hang with with Vanity Fair, Warnaco, [email protected] Call Koy at 917-589-9703 For group rates, contact Richard Franz at [email protected] Email: [email protected] Wacoal, etc. Midtown co. Or [email protected] [email protected] 973-564-9236 212 876 1368

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