Bright Lights LOS ANGELES — L.A
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PRADA PROFITS UP 33%/2 SEAN JOHN’S RETAIL BEAT/3 WWDWomen’s Wear DailyWEDN • The Retailers’ Daily Newspaper •ESDAY March 31, 2004 • $2.00 Sportswear Bright Lights LOS ANGELES — L.A. opened its sunny fashion week with a certain laid-back cheer, and nowhere was that spirit more prevalent than at Petro Zillia. Designer Nony Tochterman’s lighthearted attitude, in fact, was evident throughout the collection. She applied color and texture to working-girl outfits as well as more casual fare, such as cardigans and skirts. Here, for example, the striped wool top and floral-print silk skirt. For more on the L.A. shows, see pages 6 and 7. Target’s Latest Look: New Lifestyle Focus Boosts Women’s Wear By Katherine Bowers GREELEY, Colo. — Target is rolling out its next phase of stores — and they’re all about lifestyle. In its new format — as seen in its unit here — there is an emphasis on shopping by “life occasion,” as well as lavish, wall- size images of its designer apparel, higher ceilings, better lighting and a floor clean enough to picnic on. The reengineered store, which has been in test mode since October here but began rolling out to 25 markets nationwide this month, exemplifies what Target does best: construct pretty, airy See Target’s, Page8 PHOTO BY DONATO SARDELLA DONATO PHOTO BY 2 WWD, WEDNESDAY, MARCH 31, 2004 WWDWEDNESDAY Sportswear Prada Earnings Surge 33% GENERAL in which Prada operates. FASHION: Petro Zillia, Coco Kliks and Rachel Pally were among the By Luisa Zargani Patrizio highlights as Fashion Week rolled on in Los Angeles. Bertelli “The Prada brand is a healthy 6 MILAN — Prada chief Patrizio engine that produces cash flow Target is rolling out its next phase of stores — and they’re all about lifestyle, Bertelli was spot-on in his earn- and which grows continuously, 1 with an emphasis on shopping by “life occasion.” ings prediction of last summer: without ups and downs — it is not Net profit for 2003 soared 33 affected too much by fashion and Prada chief Patrizio Bertelli was spot-on in his earnings prediction of last percent to $43.5 million, or 36 market changes and the fluctua- 2 summer: Net profit for 2003 soared 33 percent to $43.5 million. million euros. tion of exchange rates,” said Though fashion is in a decidedly dressy phase right now, casual apparel is Although profits climbed, Andrea Ciccoli, vice president of 10 proving its resilience and trending toward more put-together looks. sales declined 13.4 percent to Bain & Co. “When all is said and $1.65 billion, or 1.36 billion done, Prada brings results home Sean “P. Diddy” Combs is progressing with his plans to build a chain of euros, from $1.91 billion, or 1.57 focusing on innovative products.” 3 stores and has signed leases for sites in Los Angeles and Paramus, N.J. billion euros, in the prior year. Prada said it will continue to Consumer confidence, which continued to be affected by job concerns, Dollar figures have been con- expand its wholesale and retail was essentially unchanged in March after a plunge in February. verted at current exchange rates. network. Next month, it will 14 The company said revenues open a flagship in Hong Kong, Costs relating to expanding its market position, launching and restructuring were impacted by the political in- the group’s largest store in Asia 14 brands helped send IT Holding into the red for 2003. stability in the Middle East, the outside of Japan. The statement U.S. and Chinese executives hope to form a coalition to find solutions to the Iraqi war, the outbreak of SARS said the store will be pivotal in politically explosive issues of competition and American job losses. in the Far East and the apprecia- ensuring a higher penetration in 17 tion of the euro, but added that the Chinese market. The group SUZY: A dispatch from the Met gala to rival all Met galas; Daryl Hannah’s sales picked up in the second plans to further expand in Asia, 4 naked truth; partying on Bond Street; another Greek royal is on the way. half of the year and in early 2004. opening a “significant” number Earnings before interest, of stores in China, Japan and Classified Advertisements ..................................................................19-23 taxes, depreciation and amortiza- and said he was confident the South Korea. In 2003, Japan and To e-mail reporters and editors at WWD, the address is tion stood at $248 million, or 205 “strategy we have adopted will the Asia Pacific area accounted [email protected], using the individual’s name. million euros, in line with the pave the way for significant for 26 percent of group sales. WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 previous year. Prada attributed growth in all markets.” In July, the group will open its FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. the improvement in its margins, In the first quarter of 2004, third Epicenter store in Los VOLUME 187, NO. 67. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue in January, May, June and November; two additional issues in February, April, September, October and December; and three which grew to 15.1 percent in comparable-store sales grew 24 Angeles/Beverly Hills, which was additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 2003 compared with 13.4 percent percent in the U.S., 67 percent in designed by Dutch architect West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; in 2002, to increased efficiency. China, 22 percent in Singapore Rem Koolhaas. Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior In a statement, Bertelli said and 7 percent in Europe. In 2003, “This is a good strategy, which Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- the “ongoing introduction of in- the U.S. accounted for 23 percent Prada has embraced before oth- President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at novative products” helped main- of total sales while Italy account- ers — these stores increase visi- additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: P.O. Box 1632, Station A, Windsor, ON N9A7C9. tain the company’s position in ed for 24 percent of sales, and bility,” said Ciccoli. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. the luxury goods sector. Bertelli, the rest of Europe accounted for Last year, Prada opened a six- FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR while noting the “difficult cir- 27 percent. story, 28,000-square-foot flagship DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. First copy of new cumstances which had a signifi- The group’s core brands, in Tokyo’s Aoyama shopping dis- subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production cant impact on the entire luxury Prada and Miu Miu, continued to trict, which was designed by correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, goods sector in 2003,” was opti- account for the bulk of revenues, Herzog & de Meuron. The store, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully mistic about the rest of the year, or 84 percent, in the 65 countries Continued on page 16 screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Specify TAC on your Tech Packs ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. & see the Savings! In Brief ● JUST A FEW MORE QUESTIONS: A Federal Trade Commission request for additional information will delay eyewear giant Luxottica Group SpA’s acquisition of Cole National. In late January Luxottica reached an agreement with Cole to buy all out- standing Cole National shares at $22.50 each, translating into a purchase price of approximately $401 million. 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