Yes, We Can-Can

Page 1 Friday ▲ ▲ BEAUTY: PARIS: Estée ▲ FINANCIAL: Reviews Lauder’s Aéropostale’s of John Dan Brestle new preteen Galliano, to retire, format: Miu Miu and page 8. P.S. From RM by Roland Aéropostale, Mouret, page 18. pages 4 to 7. PARIScollections/fall ’09 Women’s Wear Daily • The Retailers’ Daily Newspaper • March 13, 2009 • $3.00

WWDBeauty FRIDAY Yes, We Can-Can The delightful fall collection Marc Jacobs showed Thursday for Louis Vuitton was wildly ﬂ irtatious, pretend decadent and very French — ruched, corseted and poufed to a fare-thee-well. And the music included “Gaîté Parisienne,” aka the can-can song. Here, a frothy dress covered in lace, with a peplum and bows. For more on Paris, see pages 4 to 7.

Going Down to the Wire: American Apparel Races To Secure New Financing By David Lipke Negotiations are down to the wire in American Apparel Inc.’s pursuit of new financing arrangements, sources told WWD. The Los Angeles-based retailer of trendy basics faces key deadlines on its loan obligations, including one today, and is maneuvering to avoid a potential Chapter 11 bankruptcy filing. The company, which has rapidly expanded over the past five years and racked up debt of $111.6 million in the process, must raise $16 million in new financing by today’s cutoff or it will face a stiff penalty from lender SOF Investments, in the form of two million warrants for additional American Apparel shares at an exercise price of $3 a share. American Apparel currently owes SOF Investments $51 million and owes Bank of See American, Page 16 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY 2 WWD, FRIDAY, MARCH 13, 2009 WWD.COM Wal-Mart Gains With Price Focus By Sharon Edelson store sales increased 5 percent in the four weeks ended Feb. 27. Wal-Mart’s earnings per share rose NEW YORK — While domestic retailers worry about 6 percent in 2008. At a time when many retailers when the economy will improve so consumers are trying to deal with bulging inventories, Wal- WwDfridayBeauty come out of their shopping funk, Wal-Mart Stores Mart’s are growing at half the rate of sales. FASHION Inc. is using its Every Day Low Price strategy to “We’ve increased price rollbacks,” Holley Marc Jacobs delivered a gutsy expression of capture market share around the world. said. “We have over 40 percent more than a year s 4 “Our customer is being impacted all over the ago and we’re not going to take our foot off the positive thinking at Louis Vuitton at the end of world by this economy,” Charles Holley, Wal- accelerator. We don’t think this environment is a season dominated by the bummer economy. Mart’s chief financial officer, said Thursday at going to go away any time soon.” GENERAL the Bank of America 2009 Consumer Conference. Transitioning from 2009 to 2010, Holley said “Our mission, ‘Save people Wal-Mart’s “operations and mer- 1 American Apparel is said to be in 11th-hour money, so they can live better,’ Charles chandising momentum is very negotiations to secure new financing as the resonates better than ever. We’re Holley strong. We have a strong balance retailer faces deadlines on its loan obligations. delivering on that across the sheet and liquidity. Our pricing 2 While most stores wait for consumers to come world now in over 7,000 units, message, merchandising and oper- around, Wal-Mart is using its Every Day Low 3,600 of them international.” ations are very well aligned. Ticket Price strategy to capture market share. The retail giant is sitting pretty price has increased and store traf- in terms of its balance sheet. Holley fic has increased. Customers need 8 Dan Brestle, known for building brands and talent, said Wal-Mart has $11.6 billion in the ELP. We’re gaining market will retire June 30 as vice chairman and president free cash flow, more than double share of consumers making over of Estée Lauder Cos., North America. last year’s amount. Meanwhile, the $65,000 and those making less than Aeffe executive chairman Massimo Ferretti issued free cash flow of Wal-Mart’s top 10 $65,000 equally. Everybody now is 15 a rallying cry to the fashion industry, despite competitors equaled just $8 billion focused on saving money.” seeing his firm’s earnings cut in half in 2008. when added together. Three tough areas — home, hard Wal-Mart will use some of the lines and apparel — are improving. 16 The breakaway group of UNITE HERE is moving money for new stores, repurchas- “Apparel is still a little bit negative, to form a separate entity after 15 local boards ing shares and paying sharehold- but compared to the competition, voted to disaffiliate from the parent union. ers dividends, which rose to $1.09 in fiscal 2010, we stack up well,” Holley said. “The discipline our 18 Retail sales resisted dismal economic conditions from 95 cents in fiscal 2009. merchants have, clarity of assortments, pricing and for the second month in a row, but economists “We’re being opportunistic,” Holley said. signage — it all seems to be coming together. We said stores still face major hurdles. “There are going to be some opportunities over brought in OP and LEI did fantastic. Even though The Levy Group has taken responsibility for the next few months. These crises always pro- apparel was negative, LEI was positive.” Holley Louis 19 duce opportunities.” hinted there may be more such labels ahead. “We Vuitton supplying mislabeled Perry Ellis and Joseph He cited Chile as an example of the type of know you need brands there [in apparel,]” he said. Abboud men’s coats to Burlington Coat Factory. deal Wal-Mart might be looking for. The com- “You can’t play with all private labels.” Classified Advertisements...... 19 pany completed a tender offer for all outstand- The hard lines and apparel businesses in ing shares of common stock and all outstanding the U.K. are even tougher than in the U.S., yet To e-mail reporters and editors at WWD, the address is [email protected], using the individual’s name. American Depository Share that it doesn’t own “we’re seeing good positive comps in George’s WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 apparel,” Holley said. “Fashion and value are FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. resonating with our customer.” VOLUME 197, NO. 54. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with There are going to be He added the company continues to gain one additional issue in January, May, October, November and December, two additional issues in March, April, June and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division “ market share in the U.K., where ASDA is out- of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services some opportunities over performing the market and SGMA is lower than provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage major competitors. paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. the next few months. These “We’re cautiously optimistic about Japan,” Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian Holley said. “Doug [McMillon, president and addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES crises always produce TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS ceo of international,] wanted me to make sure I CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA worded this carefully. The economy is struggling 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed opportunities. there. Our comps have been positive for the last on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. — Charles Holley,” Wal-Mart Stores Inc. three or four months and traffic is up. We rolled For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online ELP out to 100 different categories.” at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Holley reminded analysts that Wal-Mart no Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please of Distribución y Servicio D&S SA or D&S, a longer gives monthly guidance — it instituted advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT Chilean retail company. 13-week guidance instead — but offered that RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, “We went through a lot last year in all global March will be an unusual month due to Easter 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 economies,” Holley said. “We’re very encouraged being in April this year. He also warned about MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY by what our business is doing in these countries. the anniversary of last summer’s government WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE We have over 50 store brands around the world. It’s stimulus checks, which put money in consum- ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. not just about the Wal-Mart banner. You’ll see more ers’ pockets and added 100 to 200 basis points to like Todo Dias Brazil. Vicente [Trius, executive vice comp store sales. “We know we’re up against that president, president and ceo of Wal-Mart Asia] has a in the second quarter,” he said. “We are working DAILY lot of experience in multiple nameplates and sizes.” hard on plans to offset that. This year’s stimulus Yes, there’s a crisis but one Wal-Mart’s positioning has allowed it to out- package is not like last year’s. Last year there perform many of its competitors. U.S. comp- was a direct impact.” QUote can“ carry on and contribute to beauty and gorgeousness. I have a practical mind — cut the parties and celebrities but you Weak French Market Weighs on Carrefour Profits can’t sacrifice the beauty of the clothes. By Robert Murphy grew impatient, said improving like-for-like sales —Marc Jacobs on his Louis Vuitton collection.” Page 4. in France, which grew 0.9 percent in 2008, would PARIS — Carrefour reported a 45 percent decline be a priority this year. Carrefour said it would in- in 2008 profits after a sharp drop in consumer vest 600 million euros, or $882 million, to do so by CORRECTIONS confidence in France cut into margins. improving operational efficiency and marketing. • Astrid Berges-Frisbey was misidentified in a Fashion Scoop The French hypermarket operator, the “Our objectives for the future are clear: To photo on page 5, Thursday. world’s second-largest retailer after Wal-Mart generate profitable organic growth that is du- • Jonathan Adler designed the interior of Barbie’s Malibu Stores Inc., said its group share of net profit slid rable and above the market and to improve our dream house. This was miscredited in a Fashion Scoop on to 1.27 billion euros, or $1.87 billion, from 2.29 margins,” said Lars Olofsson, who replaced José page 11, Wednesday. billion euros, or $3.37 billion, a year ago, missing Luis Durán as chief executive in November. most analysts’ expectations. Olofsson said Carrefour was now identifying Operating income improved 0.3 percent to 3.3 needed strategy shifts and that it would imple- billion euros, or $4.85 billion, the retailer said. ment changes in the second half of the year. John TODAY ON Carrefour, whose largest shareholder is Growth in other markets helped offset Galliano LVMH Moët Hennessy Louis Vuitton chief France’s soft performance. Sales in Europe grew Bernard Arnault and Colony Capital, said a 5.4 percent. Asian sales grew 13.3 percent and “sharp” slowdown in fourth-quarter discretion- sales in Latin America improved 31 percent. .com ary spending, coupled with a decline in food Operating profit from French operations WWD prices, worsened its performance. dropped 3 percent last year as French house- • Coverage of Paris Fashion Week Sales for the year gained 5.9 percent to 87 billion holds reined in spending in the difficult econ- including reviews, parties and Fashion Scoops euros, or $127.97 billion, propped up by deep dis- omy. Elsewhere in Europe, operating profit de- NI O counts, especially at the end of the year, and expan- clined 5 percent, hamstrung by the deterioration • Videos of key collections from sion in high-growth markets like China and Brazil. of the Spanish economy. New York, Milan and Paris Carrefour has been up against weak spending Meanwhile, operating profit in Latin America,

GIANN VANNI • Backstage beauty reports and images from Paris in its home market of France, where the econo- pumped up by Brazil, grew nearly 31 percent, and O • Full runs of show from all collections y GI my skidded at the end of the year. operating profit in Asia improved almost 11 per- b o

The company, which experienced manage- cent. Carrefour said it would propose an unchanged t • Beauty Roundup: March 13 o h ment upheaval last year as Arnault and Colony dividend for 2008 of 1.08 euros, or $1.59, a share. P • WWDBlog: Martha Stewart plays Lilly Pulitzer The new fragrance ©2009 Elizabeth Arden, Inc. Arden, Elizabeth ©2009

ElizabethArden.com 4 WWD, FRIDAY, MARCH 13, 2009

PARIScollections/fall French Kiss ’09 Louis Vuitton: Très Français! Très chic! Très jolie! And a gutsy expression of positive every possible take on a suit? Not Jacobs’ suit-cum-lingerie charmer, a delightfully thinking at the end of a watershed season during which the economy was almost naughty peekaboo blush jacket with black piping and leg-of-mutton sleeves over a everyone’s chief obsession. tight skirt smocked nine ways to Sunday and bunched prettily at the hem. To wit, Which, Marc Jacobs maintains, is not his concern. “I’m sure the economic everything came curvier, sassier, sexier, more decorated and pretend decadent advisers are not worrying about what colors to make sweaters,” he said the day than anything else out there. One dress, in midnight blue, had a sheer black lace before his Louis Vuitton show. (On that matter, he was decisive, wearing a deep bodice, capelet and overlay, side shirring, pink peplum and a bow on each hip. More purple pullover-and-kilt combo.) “Yes, there’s a crisis, but one can carry on and discreet were whisper-thin sweaters with built-in, show-through bras — one in green contribute to beauty and optimism and gorgeousness. I have a practical mind — over a frothy tiered skirt. Jacobs offered a new twinset, a printed bubble skirt over cut the party and celebrities [a reference to his New York approach], but you can’t matching jeweled leggings. As for pants, they got dolled up with flamboyant, foot- sacrifice the beauty of the clothes.” deep ruffles at the hem. To go over all these provocative gems, Jacobs offered great Nor their frivolity. For fall, Jacobs celebrated the enduring French coquette coats, including a pair of traffic-stopping reds and a dream trench in glazed, paisley- — think Victoire de Castellane, although he mentioned Loulou de la Falaise and printed velvet. Ines de la Fressange, as well — by working the stereotypes of chichi seduction Accessories? There were bags within bags, some ruffled or with sequined to girly perfection. To announce his Francophile leanings, Jacobs engaged the monograms; shoes with fishnet overlays or heels pierced with pearl-tipped hat feisty brass band The Grooms to serenade his arriving guests with the boisterous pins; boots laced with velvet ribbons, and demonstrative jewelry that aped the kind “Gaîté Parisienne.” (Yes, that’s the can-can song; never mind the small irony that children craft from paper. And on and on, in an endless celebration of joyful fashion Americans know it well as “Da-da-da-da, ShopRite while the savings last!”) of the Frenchiest sort. And gaîté it was, from flirty laced, corseted, poufed, peplumed, paisleyed, Which, according to the designer, makes perfect sense for the moment. There could pailletted, ruched, twisted and lacquered start to finish. You thought you’d seen be a nuclear holocaust, Jacobs said, and “the French would hold on to fashion.” WWD, FRIDAY, MARCH 13, 2009 5 WWD.COM FASHION SCOOPS LOW RIDER: Jessica Alba, in Paris for Thursday’s Miu Miu show, acted like Eva a local and tooled around town on a Mendes Vélib’, a bicycle you can rent for a song and return wherever you like. “We went through eight lanes of traffic, and through Saint Germain where there are no bike lanes. It was the most fun I’ve ever had,” she said, noting she did dress down for the occasion. “It’s hard to ride a bike in heels. I wore flats.” Next up for Alba is a starring role opposite Kate Hudson and Casey Affleck in “The Killer Inside Me,” in which she plays a prostitute in western Texas, circa 1957. “It’s all Fifties lingerie,” she said of her costumes. Also at the show was Eva Mendes, whose next film role is in Werner Herzog’s “Bad Lieutenant: Port of Call New Orleans.”

LOUD AND PROUD: “You came to Paris looking for the chic and the beautiful and I think we’ve managed to supply the opposite,” laughed Beth Ditto, who performed at Wednesday night’s Fendi party with her band, The Gossip. The crowd was ecstatic over her soulful voice and frenetic stage presence, with Karl Lagerfeld enthusing, “She is the epitome of beauty.” Also among the revelers were Kate Moss and boyfriend Jamie Hince. “I keep being asked about my concert tonight. It’s news to me,” shrugged Hince, front man of rock band The Kills, who will be heading to Germany next for a couple of concerts and then Australia and New Zealand. STEPHANE FEUGERE Moss, meanwhile, BY revealed she’s already done a PHOTOS

by duet with Ditto. “I

have actually sung with her — doing photos

S karaoke,” she said.

oop Designer Henry Sc Karl Lagerfeld and entourage. Holland said he’s finishing up sales in Paris and finding some bright spots in these murky economic times. “I won’t know till the books close, but the most expensive piece from the collection is being snapped up,” he said. Flame-haired model Coco Rocha was unwinding. “I just did my last show, so it’s like an after-show party for me,” Rochas said. “I’m so excited to see Ditto. I’m obsessed with that song ‘Standing in the Way of Control.’”

LAKE COMO IN LONDON: Sotheby’s has re-created the late Gianni Versace’s lavish Lake Como home, Villa Fontanelle, on London’s Bond Street for the sale next week of the late designer’s largely neoclassical collection of furniture, paintings and art works. “This is the last opportunity to enter into Versace’s world and buy something from a collection that is representative of his legacy,” said Mario Tavella, Sotheby’s deputy chairman responsible for single-owner collections. Highlights of the collection, which will go under the hammer on Wednesday, include 19th century stucco casts of Antonio Canova’s imposing pair of Pugilists — which presided over Versace’s bedroom — with a price estimate of 20,000 to 40,000 pounds, or $28,000 and $55,000 at current exchange; and a pair of cherrywood bookcases by Karl Roos, one of which has a price Sotheby’s re-creation of a room from the late estimate of up to Gianni Versace’s Lake Como home. 120,000 pounds, or $166,000. Sotheby’s also discovered a previously unrecorded painting by the 18th century artist Johann Zoffany in the collection. The 1783 work, “Portrait of the Major George Maule,” now counts as the only catalogued example of Zoffany’s work from his stay in Madras, India, that year. The entire collection, which numbers 550 lots, is expected to fetch in excess of 2 million pounds, or $2.8 million. The villa itself was sold last year.

STAGE AND SCREEN: Harvey Weinstein joined a motley front row at the John Galliano show Wednesday night that included Vincent Perez, Milla Jovovich and French rapper Doc Gynéco. “I’m here as goodwill ambassador; Georgina [Chapman] is great friends with John,” Weinstein said about his wife, before disclosing the real reason he’s in town: to view the rough cut of “The Concert,” starring French actress Mélanie Laurent, likely to premiere at the Cannes Film Festival. Gynéco, meanwhile, said he’s about to appear on a different kind of stage. “I am about to start doing theater,” he said, referring

GIANNONI STEPHANE FEUGERE AND GIOVANNI to the play “Le siècle sera féminin ou ne sera pas” (“This Century

BY Will or Won’t Be Feminine”), which opens next week in Paris. However, music is still very much on the agenda “I’m working on

PHOTOS finishing my new album called ‘Peacemaker,’” he said. 6 WWD, FRIDAY, MARCH 13, 2009

PARIScollections/fall ’09

John Galliano

John Galliano: After sending his Christian Dior girl off on a Persian jaunt, John Galliano also looked Eastward for his own collection — this time to the reaches of Eastern Europe. The result was a lineup that was as fantastic as it was fantastical. In fact, the only complaint is that his high-drama designs begged for more- elaborate staging, and the runway’s faux snowstorm, though visually appealing with its added laser lighting, only had guests coughing up a storm of their own. But on to the beautiful clothes. The collection was one big love letter to Russia and the surrounding Baltic Miu Miu lands. At first, the folksy notes came out in the added extras — lavish embroideries, tassels and tufted pom- pom appliqués grafted onto great coats, some cut with wide panniered hips and seriously structured volume. Then out spilled the puffy peasant blouses, kicky milkmaid getups and Ruska Roma gypsy fare, flamboyantly styled with fancy headdresses, coin jewelry and insane lace-up pom-pom boots. Silhouettes were dramatic, including jackets with trailing sleeve appendages, as was the designer’s color sense — in that saturated blue and purple jacket with hot pink piping, for instance. s John t From there, Galliano brought his Galliano Russian caravan to Scheherazade t terrain, with a harem of models in delicate yet seductive eveningwear cast in shimmery silver or white hues. He delivered on wistful dresses, a pretty off-the-shoulder fringed number and those sheer bias-cut gowns of his, rendered Theda Bara-like bewitching. The collection was ultracostumey, yes, but not without the possibility of runway-to-reality transitions. Pare down a pannier, add a lining or two, and you’ve got some great clothes — Miu Miu still flush with Galliano enchantment. WWD, FRIDAY, MARCH 13, 2009 7 WWD.COM

Miu Miu RM by Revillon Roland Mouret

Fancy Ideas Revillon: Peter Dundas has been pushing fanciful fur, one of this season’s all-around trends, at Revillon since his arrival a year ago, and he continues to stand out with his fun and fresh approach. “Hip-hop chic” was the inspiration for his fall collection, full of animal-printed furs done in a pretty palette of pink, lilac and army green, and a stellar intarsia camouflage style. The soft colors and sporty shapes — bombers and parkas, some that zipped to alter the length, others that were reversible — captured a casual, carefree attitude that felt new for fur.

For full Quentin Veron: A stylized, runs of Gothic vibe à la Tim Burton characterized newcomer show, Quentin Veron’s delightful see debut collection of artisanal WWD.com. furs, handcrafted in his Paris atelier. The young dandy monochrome looks were the most fun, from a knee-length, raised-collar Cruella De Vil coat in shaved white rabbit Miu Miu: After a season filled with angst, clever stoles that looked like the collar RM by speckled with black Dalmatian- Miuccia Prada closed the shows with and front of a coat. From there, things Roland esque spots, to a line of an intellectual beauty of a Miu Miu got sleeker and more provocative, with Mouret lush striped and checkered collection that was as smart as it was slim skirts and dresses, some done raccoon coats and vests. chic and sexy. But instead of overt in sheer silk, others flaunting chunky While the more outlandish reflection on the current state of the embroideries down the front. They were fare had a young clubber feel, world, Prada took a thoughtful look conservative and covered up, aside Veron also included some at superficial, sultry fare with a show from the décolletage, which plunged to close-fitting styles for a more that, as she said backstage, was about the waist to reveal the models’ triangle mature clientele, such as the “different kinds of femmes fatales with bras. It was boldly suggestive and bolero honed from strips of an ironic eye to some clichés about entirely elegant. shaved black rabbit made to beauty and elegance.” resemble astrakhan. Seduction was key, as Prada culled RM by Roland Mouret: If the fashion girl’s dialogue from risqué films from the style spectrum ranges from chic staple Quentin Seventies, such as Just Jaeckin’s to statement maker, Roland Mouret Veron “Madame Claude” and “Histoire specializes in the in-between, the kind d’O,” and Fassbinder’s “Chinesisches of clothes that would intimidate the Roulette,” which played on the sound uninitiated without shocking them. His track. There was a retro influence, for fall RM collection was stocked with sure, but this was not a trip through such styles: lots of tight sheaths and the wardrobes of vintage screen smart jackets elevated beyond the basic sirens. Rather, Prada reworked her with strategic folds or sharp cuts that clichés — Orientalism and black played toward an edgy, urban version dresses were among those she named of Mouret’s sensibility. A dark palette — into modern visions, all done with a of black, navy, gray and deep green touch of Prada perversity. prevailed, with the occasional stroke of She sent out distinct groups, the feminine fuchsia and lilac, all of it easy first, soft ingenues in nude and blush to wear — as were most of the clothes. coats that were refashioned into short, Origami folds, one of Mouret’s favorite sleeveless dresses, a few with undone and most familiar effects, were soft on buttons or bare, cutout backs that silk dresses and structured on tailored revealed the model’s skin, slathered jackets, some molded into a leaf shape with shimmery glitter. Darker, more in the front, most worn over ombréd,

exotic versions of similar styles done metallic alligator-print leggings, another GOIZE AND DOMINIQUE MAITRE GIANNONI, FRANCOIS STEPHANE FEUGERE, GIOVANNI in blue tapestry patterns, a tiger print nod in the direction of tough chic. Much and straight-up black followed. Fur was of it was very nice and on trend, and will

mixed throughout on tweed coats and offer retailers many options. PHOTOS BY 8 WWD, FRIDAY, MARCH 13, 2009 The Beauty Report Lauder’s Dan Brestle to Retire By Pete Born was “emotionally, the most difficult decision.” He noted, “from taking Clinique where I found it and moving it into the number-one line in North America, and then Dan Brestle, who has shown a deft talent for building brands saying, ‘OK, go compete with yourself in Lauder’ — that was a very hard emotional and mentoring talent over the last three decades, will retire June 30 from his post transition for me.” as vice chairman and president of the Estée Lauder Cos., North America. Not surprisingly, the most enjoyable moments came at Clinique, particularly with Proud of having worked in every one of the company’s divisions, Brestle, 63, has the watershed launches of Turnaround Cream and Happy fragrance. been a mainstay of management expertise since he joined Lauder in 1978, when “We just had the best team,” he said, asserting, “Clinique just skyrocketed and we the firm consisted of three brands generating $400 million in sales. It remains the just blew past Lancôme, blew past Lauder. That was probably the most satisfaction.” world’s prestige powerhouse, consisting of 29 brands with sales in the last fiscal The significance of the Turnaround Cream launch in September 1992 was that it year of $7.9 billion. marked the first time that Clinique introduced a product with Brestle will be missed, judging from the comments of national and co-op advertising coordinated with the on-coun- his bosses. Leonard Lauder, chairman of the Estée Lauder Dan Brestle ter product arrival. Previously, founder Carol Phillips had put Cos. Inc., describes him simply as “a great human being.” the product on counter for three months before advertising. Asked what Brestle brought to the company, Lauder re- Brestle recalls saying at the time, “We’re gonna make plied, “a combination of good common sense, experience; this a big deal.” he listens easily and gives good advice.” Faced with a The Happy fragrance was a trickier proposition be- plethora of competing brands and stores, “he is able to cause of the brand’s squeaky clean, nonfragranced lab navigate those brands and stores so smoothly you don’t coat image. really know it’s being done.” “We sat in the conference room and said, ‘What emo- His son, William Lauder, chief executive officer, sent a tion can Clinique sell in a fragrance?’ Can you imagine letter to employees, stating: “His ability to build and foster Obsession by Clinique? You’re in a white lab coat, what great teams is legendary — from the brands, to the field emotion can you sell?’ teams, to operations, to our retail partners. His remarkable “[Creative director] Jim Nevins walked into my office and vision and business acumen is what has made him one of said ‘I need $10,000.’ I said, ‘Why?’ He said, ‘I know what the the most revered mentors for many in our industry.” name of the fragrance is.’ I said, ‘Well what is it?’ He said, ‘If During an interview, Lauder said that Brestle’s char- I tell you, you’re going to think it’s a Revlon fragrance and ismatic personality embodies “a certain humanity and throw me out of here. I want to create the environment.’ engaging presence that makes a lot of people want to “He created three vignettes, TV commercials with work with him and partner with him.” Lauder added that Jimmy Durante talking, ‘Make Somebody Happy,’ Judy after retirement, Brestle will continue as chairman of the Garland. You looked at it and said ‘That’s it.’ Clinique Personal Care Products Council as well as work in sup- can sell happiness. Clinique finally found an emotion that port of PCPC’s Look Good, Feel Better program. worked as a fragrance that it could sell.” Brestle has strong relationships with both market- Brestle was named group president from July 2001 to ing executives and retailers. Robert Mettler, the retired January 2005 with global responsibility for Aveda, Bobbi president of special products at Macy’s Inc. and former Brown, Bumble and bumble, Darphin, Jo Malone, and La chairman and ceo of Macy’s West, praised Brestle as the Mer, while overseeing the development of BeautyBank. In “consummate professional.” Mettler attributed Brestle’s January 2005, Brestle was named chief operating officer ability to have played so many roles within Lauder as sim- with responsibility for research and development plus the ply being “the guy who understood every aspect of the re- Estée Lauder, MAC Cosmetics, Prescriptives, Tom Ford tail and corporate sides of the business. I have enormous and Sean John brands in addition to BeautyBank. respect for him.” He was named to his present post in November 2007 Brestle’s versatility enabled him to lead brands like with the recruitment of Fabrizio Freda as chief operating Prescriptives and Clinique Laboratories in their peak His ability to build and foster officer and president, signaling the beginning of a new era years, but also to mentor Lauder’s collection of indie at Lauder. brands and its fledgling BeautyBank division. “great teams is legendary — Brestle reflected on the changes he has seen in the Brestle began his career in 1973 after leaving the Air American retail landscape from 75 department stores Force and joining Johnson & Johnson, where he held a from the brands, to the field chains in 1990 to nine that do over 90 percent of Lauder’s number of jobs, including running a Band-Aid plant. He business today. Also, he’s seen the rise of big-box and began at Lauder with a distribution job in the Aramis di- freestanding specialty store competitors to the tradition- vision, then was instrumental in modernizing systems at teams, to operations, to our al department store. The result is that department store the main Melville, N.Y., plant and running the Lauder fra- anchors have gone from selling 98 percent of cosmetics grance operations. He switched out of operations in 1983 retail partners. products in a mall to “roughly 70 percent.” as regional marketing director for Aramis, and moved to — William Lauder, the ”Estée Lauder Cos. Inc. “There are alternatives now for a young generation Prescriptives the following year as vice president and na- who are not as comfortable with that department store tional sales manager before stepping up to president. environment as her mother was,” Brestle said. “It’s going to be a challenge to bring During an interview Monday, Brestle said one of the aspects of his career that that customer back into the department store, it really is. makes him most proud has been his ability to cross bureaucratic borders between “I think they’re going to find their footing. I still believe that they needed to do job functions and brands. “You were, historically, segmented,” he said. “If you were what [Macy’s Inc. chairman, president and ceo] Terry [Lundgren] is doing and cre- in operations, you were an operations guy. If you worked for Clinique, you’re a ate a national presence. I’m still pro-department store…it is still is the most inex- Clinique person. It was easier for you to leave the company and come back versus pensive way to create a brand anywhere in the world.” going from Clinique to Lauder; people just got pigeonholed.” Neither has he become jaded about the business. His advice to young people Brestle led Clinique Laboratories as president from 1992 to 1998, establishing entering the industry is “enjoy what you’re doing. You’re selling lipsticks. It’s a its number-one sales rank in 1996-97. He then was named president of the Estée tremendous commodity — if you want to call it a commodity — a great product to Lauder flagship brand for the U.S. and Canada, which he had previously dislodged sell. And when you really look at what we do from the fragrance to the skin care to from the top spot by leading Clinique to number one. the color is make people feel better about themselves. It’s not brain surgery, it’s not During the interview, Brestle admitted that switching from Clinique to Lauder drugs. It’s a tremendous, tremendous, fun business to be in.” Khoury’s Advice: Connect With Customer in a New Way The EstEe Lauder Cos. Inc.’s Karyn Khoury Khoury said the current economic climate presents an feel that you are coming from the same place because told a room full of industry executives at last week’s Women opportunity to take brands to new heights, and pointed to you are dealing with an emotional product,” she said. in Beauty Series at the Cosmetics Executive Women Lauder’s launch of Sensuous — the company’s most suc- Citing art and travel as constant sources of inspiration gathering that consumer insight was critical to cessful debut since the introduction of Estée Lauder and fresh perspective, Khoury said the current market the fragrance business during tough times. Pleasures in 1995 — as an exception to the self- is ripe for stimulation and surprises. “We know we are dealing with a con- Karyn denial rule during these tightfisted times. “We sumer who feels besieged and who is Khoury went far beyond reassuring consumers’ emo- We have to send signals of feeling very unsure of her future so tional connection and actually did subcon- we have to send signals of value to scious research to connect Estée Lauder “ the consumer — even in the luxury to consumer on a new platform,” said value to the consumer — even sector,” the senior vice president of Khoury, who told the audience successful corporate fragrance development fragrance creation is a mixture of business in the luxury sector. worldwide for the Estée Lauder Cos. analysis, science and magic. “The science — Karyn Khoury, ”Estée Lauder Cos. told a group of 400 people gathered of consumer insight, trying to get in the cus- at New York’s Harmonie Club, during tomer’s head and predict what she’s going to For those in the audience looking for some final a discussion with WWD Beauty Biz edi- want and what’s relevant to her is critical.” words of wisdom, Khoury had this to say: “Consumers tor Jenny B. Fine. “Every single aspect of The 27-year Lauder veteran, who manages sense falseness, so know who you are, know what’s im- the fragrance experience needs to make her seven brands for the company, advised those in portant to the consumer and answer it in a way that feel fantastic because you are competing with every attendance to immerse themselves in their customers’ makes sense to you and the brand.” other consumer category ” culture to better serve them. “You have to make them — Gillian Koenig WWD, FRIDAY, MARCH 13, 2009 9

The Beauty Report WWD.COM

A value set from MD A Barber Comes to Bloomingdale’s Skincare’s new lineup. By Matthew W. Evans which features black, mirror and chrome accents. Around the perimeter walls of the department are case lines with The Art of Shaving has opened a barbershop- the same sleek, black-and-silver fixtures. in-shop concept at Bloomingdale’s, and the space forms the While all the major men’s and women’s fragrance cornerstone of a 4,570-square-foot fragrance department and brands are merchandised at the fragrance bar and along men’s skin care area at the retailer’s 59th Street flagship. the case lines, men’s skin care lines have been moved to The fragrance department, located on the Third Avenue The Art of Shaving’s corner, which measures a total of 400 side of the store, was opened during the last week of square feet, including the barber space. February. This was after the floor was closed for a few weeks Merchandised in an alcove immediately in front of the as a new fragrance bar, case lines and The Art of Shaving’s barber space are brands like Lab Series — “a long time, 200-square-foot, two-chair barbershop was constructed. critical part of our men’s business,” said Kreitzman — and “The new fragrance and men’s skin care area at 59th Zirh. In a bid to make the barbershop a semiprivate area, a Street is part of major renovations of the main floor,” said partition separates the men’s skin care area from the bar- Howard Kreitzman, vice president of cosmetics and fra- bershop, which is manned by two master barbers. grances for Bloomingdale’s. “We see it as a way to take our The floor of the new department is as sleek as its fix- service and brand offerings to the next plateau.” tures, with high-shine black and white tiles — one of the Kreitzman said of offering barber services in the store, reasons The Art of Shaving slightly tweaked the colors “We wanted to offer our customers a unique ex- of its barber spa. (“Barber spa” is what The Art of perience as we opened our new fragrance Shaving calls its barbershop format, which fea- world, and we believe that Art of Shaving tures services like straight-razor shaves.) allows us to do that.” “We went with white marble counters rath- The new fragrance department looks er than our regular beige,” said Eric Malka, decidedly upscale. In the middle of the who cofounded The Art of Shaving with his floor is a wide, round fragrance bar, wife, Myriam. He added, “This shows the great confidence Bloomingdale’s has in The Art of Shaving. It fits with [the floor’s] newly men’s renovated style.” corner While he wouldn’t discuss numbers, indus- MD Skincare Adds try sources estimate that before building the barbershop-in-shop at Bloomingdale’s, The Art of Shaving did about $180,000 annually at the store. Natural Body Care In year one, according to sources, the barbershop-in-shop With Beauty In Toxins Out Natural could pull in from $300,000 to $350,000, and within two to Beauty Collection, his new body care collec- three years could be a $500,000 business. tion, Manhattan-based physician Dennis Gross The location — a first for the men’s grooming brand — is making a move few other clinical dermatolo- is not far from The Art of Shaving’s first store, which was gists do: heading into natural products. opened in 1996 at the corner of Lexington Avenue and “We felt that pursuing natural ingredients as 62nd Street. “Bloomingdale’s used to refer customers to antidotes to environmental aggressors made us for barber services,” said Malka, “and now, 13 years sense,” said Gross, who along with wife Carrie later, it’s come full circle.” Gross, the firm’s president and chief executive The Art of Kreitzman didn’t rule out building more Art of Shaving officer, runs the brand. “Our reality is that skin is Shaving at barber spas in Bloomingdale’s in the future. “Once we bombarded daily with environmental pollutants Bloomingdale’s. have gained some experience with this new initiative, we and impurities of all types. We’d like to help re- will be able to determine the next steps,” he said. verse the damage done by these pollutants without adding more unnecessary chemicals to the mix.” The line, which is vegan-friendly and free of parabens, sodium lauryl sulfate, petroleum, Christophe Cervasel Launches New Distribution Company mineral oil and paraffin, replaces harsher ingredients with those found in nature, said Christophe Cervasel, former chief executive their beauty business directly, but they need strong dis- Dennis Gross. “There are a number of natu- officer and a founder of Selective Beauty, is launching his tribution,” he said. ral alternatives to these chemicals,” he said. own distribution company, called B…comme Beauty. Cervasel, who is the president and majority owner in “For instance, we’ve used blueberry seed for The new company, headquartered at 20 Rue Cambon the new firm, said the Balmain and Montana deal was its antioxidant and anti-inflammatory proper- in Paris, has already signed a distribution deal for two signed with Philippe Benady, president of the Paris- ties, papaya as a gentle exfoliator and tea tree brands — Balmain and Montana — in France, according based Parfums Balmain and Empire of Scents, which oil for its healing properties.” to Cervasel, who said he is in talks with other companies owns the Montana license. “I decided to partner with B… The line includes five products. Antioxidant for other markets. Cervasel said he expects to sign his comme Beauty since I believe they have the right visions Enzyme Buff with Berry Seeds and Dead Sea next deals in either Italy or the U.K. His plan is to ulti- of what should be a long-term and successful partnership Salt, $57 for 14.1 oz., uses cranberry seed for mately sign up brands for local, regional and global dis- between a brand and its distributor,” said Benady. its polyphenols, blueberry seed for its anti-in- tribution deals. The individual fragrances are Ivoire, Monsieur flammatory properties and kelp for its iodine His concept is to provide an alternative to typical li- Balmain, Vent Vert, Jolie Madame and Miss Balmain, and amino acid content. Creamy Cleansing censing deals, where the manufacturer is saddled with as well as the latest launch, Ambre Gris, from Balmain. Polish with Jojoba Beads, $38 for 6.7 oz., is in- the total responsibility right down to the salespeople. Montana is represented mostly by Parfum de Peau. tended to exfoliate and moisturize skin with “There are many brands today that want to manage — Pete Born a cocktail of pomegranate, papaya, kelp and sweet almond oil, with tetrasodium EDTA as a OBITUARY chelating agent to prevent minerals from bond- ing to any of the other ingredients. Hydrating Body Emulsion with Aloe, $36 for 6.7 oz., uses Eickmeyer, Lauder Store Designer, 80 sweet almond, jojoba seed, evening primrose, ylang-ylang and lavender oils with grape-seed Robert Eickmeyer, a former store designer Cos. chairman Leonard Lauder. “It is thanks to him that extract and aloe leaf juice to moisturize, soft- at the Estée Lauder Cos. Inc., who developed and opened Clinique has the global presence it does, and he left us a en and soothe the skin. the first freestanding Clinique store outside the U.S., died strong heritage upon which we continue to build.” Botanical Bar with Tea Tree and Aloe, 7 Monday of Leukemia in Louisville, Ky. He was 80. Eickmeyer conceived and implemented the first func- oz. for $24, combines tea tree and aloe with Eickmeyer, a graduate of Washington tional Clinique counters — complete with orange peel, papaya and vitamins A and C University, began his career with Lauder sit-down consultation areas and private to clean and soothe the skin. Purifying Bath in 1968 as a freelance store designer, be- lab rooms — in U.S. department stores and Crystals with Himalayan Salt, $42 for 14.1 fore coming in house 11 years later as the later designed the first international free- oz., combines cranberry fruit juice, aloe, director of store design for Clinique. In standing Clinique store in Budapest. CoEnzyme Q10, colloidal oatmeal and Vitamin 1984, Eickmeyer was named vice president In a letter to Estée Lauder employees, C to remove toxins found in the environment of store design for Clinique Worldwide, and Leonard and William P. Lauder wrote, “His and water, as well as hydrate the skin. in 1987, was appointed vice president of in- colleagues remember him as being a man of A value set, consisting of an 8.8-oz. Purifying ternational store design, where he oversaw striking intelligence and good taste, a broad Bath Crystals and a 10.5-oz. Antioxidant store planning for Lauder’s rapidly expand- creative talent whose incredible store de- Enzyme Buff, will be sold for $55. ing business overseas. In 1994, Eickmeyer signs were matched by his sparkling wit The brand is currently in 1,550 doors in the was promoted to senior vice president of and drive for excellence.” U.S., including Nordstrom, Blue Mercury and store design for Clinique International. He Eickmeyer is survived by his nieces, Carol, a number of spas. managed the opening of new markets in Robert Ellen and Barbara; sister-in-law Ann, and his While neither executive would comment on Central and South America, Eastern Europe Eickmeyer grandnieces, July and Emily. projected sales or advertising spending, indus- and Southeast Asia before retiring in 1999. No memorial service was held. The fam- try sources estimated that the Beauty In Toxins “Bob Eickmeyer was a genius. He was one of the most ily has requested that in lieu of flowers, donations be Out Natural Beauty Collection could do upward important creators behind Clinique’s in-store presence made to the Santa Fe Chamber Music Festival to the at- of $8 million at retail in its first year on counter. and was responsible for making the Clinique “look” in- tention of Kristen Tidwell. — Julie Naughton stantly recognizable around the world,” said Estée Lauder — Gillian Koenig VOtED ON By CEW’s THE 2009 BEAUTY AWARDS FINALISTS 4,000 MEMBERS

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WINNERS ANNOUNCED ON MAY 1, 2009 CEW BEAUTY AWARDS LUNCHEON WALDORF=ASTORIA DON’t Miss Out! CATEGORIES BALLOTS RESERVE YOUR TICKETS NOW AT CEW.ORG DEFINED BY: TABULATED BY: 12 WWD, FRIDAY, MARCH 13, 2009

The Beauty Report WWD.COM Products Target Haircut, Not Hair Type SNIPPETS RIZER GIG: Model Maggie Rizer’s latest By Andrea Nagel appearance will be as an “ambassador” for fledgling skin care brand Clark’s Finding success in the crowded hair care arena is difficult — if not Botanicals’ $355 Cellular Lifting Serum, impossible — for brands not tied to a multinational conglomerate or, at the very least, a which is to launch this week at Saks Fifth hairstylist with global appeal. But beauty executive Bob Salem plans to “reinvent the hair Avenue and could do $2 million in first- care paradigm” with Blue Space Brands, a company that aligns Salem’s beauty concepts year sales. Founder Francesco Clark said with the charms of a multifaceted brand and strategy consultant. he wanted beauty and brains: “Beauty At first glance, Blue Space’s overall strategy doesn’t appear too different from a typical should be about intelligence, and Maggie small hair care company armed with a fresh concept and a distribution strategy that aims embodies this,” he said. Rizer is working first for the web, then TV and finally a prestige brick-and-mortar retailer. But Blue Space’s on a TV show about modeling, scheduled consultant, Michael Flutie, offers the company a crack at his vertically integrated Talent to debut on Bravo at the end of the year, Brand Management and Brand Strategy Firm, one that develops technology and content as well as a memoir. for interactive media. What this means is that Blue Space’s breakout range, HerCut, can launch online with video content that aims to get the brand’s message across in an in- SHISEIDO CENTERS: Next month, Shiseido novative way for broadband and mobile distribution with e-commerce capabilities. The will open three beauty centers in China interactive content produced by Madwood Media, Flutie’s New York-based content-devel- and Taiwan to provide makeup advice opment, production and digital distribution company, also contains a retailer cooperative to individuals with severe skin problems marketing resource that aligns consumer interactivity with a retailer’s particular mes- such as birthmarks, vitiligo and scarring. sage. The fact that these Webverts, as they are called, are viral, also helps. The company said the Shiseido Life “For the first time under one roof there is a company that unites talent brand man- Quality Beauty Centers, which will agement, interactive marketing production and digital media distribution with concept be located in Shanghai, Taipei and driven brands, product development and retail distribution,” said Flutie. Kaohsiung, Taiwan, are part of a global HerCut, which has been formulated to target a woman’s specific haircut as opposed to initiative to expand Shiseido’s corporate her hair type, has targeted over 300 Web sites, social networks and blogs that host beauty- social responsibility activities through Maggie Rizer for Clark’s Botanicals. involved consumer communities to reach possible users, Flutie said. cosmetics and beauty care. Shiseido already has one such center in its Tokyo Ginza headquarters as well as the Perfect Cover Foundation line of products, designed to cover birthmarks and other blemishes. Items in HerCut. NORTH CASTLE GETS DEEPER: Private equity firm North Castle Partners has purchased a majority stake in Depth Bath & Body and combined the Petaluma, Calif.-based brand with mineral cosmetics brand Mineral Fusion to form a new company called Mineral Fusion Natural Brands. According to Depth Bath & Body founder and Mineral Fusion Natural Brands senior vice president of marketing Tim Schaeffer, North Castle owns between 55 percent and 75 percent of the new company. GloProfessional, a company within North Castle’s portfolio, owns the second largest share and members of the management team own the remainder. Justin Miloro, formerly a senior member of the category management team at Whole Foods’ Whole Body department, has been brought on board as national director of sales. Schaeffer estimated that Mineral Fusion Natural Brands is on pace to generate $4 million in revenues this year and projected 20 percent growth next year.

UNILEVER AGREEMENT: After locking horns over price increases earlier this year, Unilever and supermarket chain Delhaize Belgium have reached “a balanced agreement,” according to a joint statement from the two companies. “Unilever and Delhaize announce that, to their mutual satisfaction, they have reached an agreement with respect to their collaboration in Belgium,” the companies stated. “The balanced agreement means a positive outcome for both parties and the consumer.” In February, Delhaize, which operates 775 stores in Belgium, suspended sales of 250 of the Anglo-Dutch consumer goods giant’s products in protest against Unilever’s plans to impose what the retailer had said were unacceptable commercial conditions. According to Delhaize, Unilever had been playing on its strength in certain product segments to push the retailer to carry less successful lines. Following Delhaize’s refusal to acquiesce to the product mix, it said Unilever withdrew long-standing buying conditions and raised the prices it sells products to Delhaize by 30 percent.

A WHALE OF A TIME: With its latest limited edition makeup line, Chantecaille hopes to make a splash and save the whales — as well as myriad other species calling the This shifts the hair care paradigm from products high seas home. The New York-based beauty brand will donate 5 percent of revenues generated by La Baleine color-cosmetics collection, which launches this month, to The “by hair type and style to products for type of haircut International Union for Conservation of Nature. The collection comprises two compacts — one for eyes and one for the face — each retailing for about $119, as well as a kohl and its performance. pencil, lipsticks and lip gloss. ” — Bob Salem, Blue Space Brands GOOD CITIZEN: Avon Products, Inc. was just ranked number 18 in the Top 100 Corporate Citizens for 2009 by Corporate Responsibility Magazine in its 10th annual Flutie recently served as the architect behind multiyear fragrance deals for Tim 100 Best Corporate Citizens list. Based on publicly available information, the list McGraw and Faith Hill with Coty Beauty. His current client roster includes beauty ex- ranks 1,000 companies on their performance in seven areas: environment; climate pert Kyan Douglas, actress-model Jaime King and Manhattan dermatologist Lisa Airan, change; human rights; philanthropy; employee relations; finance, and governance. a fixture within Vogue magazine’s social pages. And this week Douglas agreed to serve as HerCut’s product ambassador; the line plans to launch June 1 on hercut.com. SALLY SHOW: Sally Hershberger and her team of hairstylists will make an appearance In addition to Flutie’s Web expertise, HerCut may have a leg up on the competition at Walgreens in Times Square today from 3 p.m. to 4:30 p.m. to demonstrate how to given Salem’s beauty résumé. Prior to Blue Space, Salem cofounded professional hair use her hair care line. Product and coupon giveaways, as well as a raffle for a free cut care brand Profound Beauty and held senior level marketing positions with Aveda and at Hershberger’s downtown salon, will also be part of the event. L’Oréal. With regard to the Blue Space Brands team, Salem said he does not have any outside investors. His collaborators include Maria Laguardia, product development; REVLON APPOINTMENT: Revlon Inc. has named Alan Meyers as its upcoming executive Joe Cincotta, formulations, and Tian Wang, developer of molecular complexes. Industry vice president, chief science officer. Meyers’ post will become effective January 1, sources project HerCut could generate sales of $15 million in its first year, once it gains following the retirement in December of Neil Scancarella, who has served as chief its prestige retail, digital media and direct response TV distribution. science officer since January 2000. Meyers, 51, has spent his career in cosmetics Salem said HerCut offers products that are formulated to bring out the best of such research and development, holding positions at Avon, Elizabeth Arden and L’Oréal classic cuts as The Bob, The Blunt, The Shag, The Long Layers and The Pixie. Each range USA, where he most recently served as senior vice president, Research and has its own star product, or catalyst, as the firm calls it, that is meant to “optimize the Development and Consumer Affairs. haircut’s behavior from beginning to end,” said Salem. For example, the catalyst in The Shag has been formulated with polymers to add texture with dimension, and to provide THIBIANT TALE: The iconic Beverly Hills spa Thibiant has been given a facelift and been lift at the root to yield layers that move. Long Layers’ catalyst uses a cationic complex to renamed by its new owners, plastic surgeon Henry Glassman and True North Capital connect and control layers. The Blunt’s catalyst utilizes strand compression to diminish chief executive officer Herminio Llevat. It is now called the Thibiant European Skin space between fibers to deliver uniformity. Catalyst items sell for $22 each. Shampoos and Clinic and is paired with the Thibiant Institute of Aesthetic Medicine, where Botox conditioner are available, too, and address each of the cuts and will sell for $19 each. and filler injections, among other procedures, are administered. Glassman and Llevat, To bring his beauty concept of hair care for haircuts to life, Salem reached out to lead who bought the nearly 40-year-old Thibiant last June from its founder Aida Thibiant, Prada illustrator Liselotte Watkins for HerCut’s quirky art, and Creed Strategic Imaging inherited 75 stockkeeping units of Thibiant skin care products. Under the guidance of for packaging. vice president of marketing and product development, Natalie DiLallo, who was formerly “This shifts the hair care paradigm from products by hair type and style to products in a similar capacity at infomercial specialist Guthy-Renker, the products are being for type of haircut and its performance,” said Salem. “HerCut makes a haircut work. And repackaged and rebranded, and should be relaunched in about six months. “We are that shift touches every product we will make with this brand, and simply redefines hair really looking to go back to the roots of [Aida Thibiant], with specialized skin solutions,” care as we know it today.” said Llevat, adding that product sales “will be a very much Web-based business.” WWD, FRIDAY, MARCH 13, 2009 13 WWD.COM The Beauty Report WWD.COM Eyes, Minerals and Naturals Have It at Mass NEW YORK — With buyers lamenting the sluggish state of retail, they are quick to highlight a few categories bringing life to their stores. Mascaras, other eye product, mineral makeups, natural cosmetics and hair color are among some of the areas singled out as luring shoppers into mass doors. An examination of data from Information Resources Inc. reveals that there is indeed promising news. For the 52-week period ended Jan. 25, facial cosmetics sales in food, drug and mass stores (excluding Wal-Mart) rose 2.18 percent to just over $1 billion. Drugstores are outpacing that growth, with sales up 2.8 percent to $634 million. New items such as Revlon’s Beyond Natural and Cover Girl’s Simply Ageless, hawked by Ellen DeGeneres, are propelling sales. L’Oréal Bare Naturale leads blush and foundation, but mineral formulas are rising and account for two spots in the top 10 selling brands. Interestingly, though, the fastest-growing segment within “facial” isn’t even a facial item, rather a classification called body accessory. This is a relatively new area created by products such as Coty’s Sally Hansen Airbrush Legs and Perfection Body Accessory. critical Additionally, Revlon’s Age Defying Body Accessory and Rimmel Fix and Perfect were brands with dynamic growth, according to by retailers citing IRI data. mass Experts think matte looks will emerge in the facial Faye Brookman category over the next few months. “With the economy the way it is, we feel women are getting away from the shiny, glossy looks and going for a matte look,” ex- SAMPERTON KYLE plained Grant Berry, creator of Styli-Style.

Sales are also bright in the eye category, according PHOTOS BY to IRI. That’s good news to retailers who had not seen Left: Pop Beauty eye shadows. Above: A beauty adviser applies eye shadow. growth in eye for the last three years. Eye beauty product sales jumped 6.68 percent to over $1 billion egory sales are down almost 6 percent to $580 million as women put for the 52-week period, ignited by eye combos, liners, a bigger emphasis on their skin and eyes. Taking the biggest hit are brow kits and shadows. The continued popularity of lip liners and lip treatments. smoky eyes coupled with new kits from suppliers that Nail is up less than one percent when looking at food, drug and help women achieve eye looks pushed overall kits mass as a whole, but is down in supermarkets and up in drugstores sales up 300 percent for the period. Almay Intense I when looked at just those channels. The category, however, is ex- Color was mentioned by retailers as a perfect exam- pected to benefit from the current do-it-yourself beauty trend. ple of putting a kit together that helps women achieve Outside of color cosmetics, hair color sales are flat for the 52-week a look that used to have to be taught by advisors. In period, but are also expected to rev up as more women (and men) the value end of the market, Jane Colorstick Eye Combo made the top 10 list. color hair at home. Although L’Oréal’s Superior Preference Women’s hair color is the In brows, Revlon’s Brow Fantasy achieved almost double-digit growth. Also grow- number-one stockkeeping unit in drug chains, Clairol’s Perfect 10 generated more than ing as it rolled out was Maybelline Expert Wear Eye Brow makeup. No discussion of $18.6 million in drugstores alone, according to IRI. “It is a great product,” said one top trends in mass is complete without dealing with the influx of new mascaras promising merchant. “But now it is getting competition — but that will boost overall hair color.” lush new lashes. Sales are up 7 percent for food, drug and mass. IRI’s Thom Blischok, president, consulting and innovation, sees the do-it-yourself While eyes and face showed sales increases, retailers took a hit in lip, a category trend lingering well into the next decade and could be a trend that stays even if con- that had been leading sales growth through the early part of the decade. Lip cat- sumers get more discretionary dollars. Mirabella Updates Makeup Range Baxter Brings ‘Bravado’ Back to the Mix Mirabella Beauty’s By Matthew W. Evans stores that carry Baxter’s candle series. new president, Adrienne Bravado 2 and Bravado 3 each come in one Kramer, has given the profes- Men’s grooming brand Baxter of size: a 100-ml. bottle for $80. sional makeup brand a bit of a California is getting back into the fragrance game Based on the brand’s distribution in the U.S. polishing. — after 35 years — with the mid-April launch of and internationally, the scents could generate Kramer, who joined the two new scents exclusively at Barneys New York. upward of $1 million in first-year retail sales Valencia, Calif.-based company The fragrances, called Bravado 2 and volume globally, according to industry sources. seven months ago, decided the Bravado 3, play off the name of the original In addition to being carried at stores such firm needed several updates, in- scent, which was launched in the early- to mid- as Freemans Sporting Club in New York and cluding an expanded shade range, Seventies and called — what else? — Bravado. Studio Fred Segal in Los Angeles, Baxter is also promotional materials that would “We wanted to branch out into not just grooming found at Colette in Paris and has distribution stress health and wellness and an but lifestyle,” said Baxter president Jean Pierre elsewhere in France, Germany and Japan. ad campaign. Mastey. “This allowed us to leverage that claim.” The packaging for the colognes, which was So, 18 foundation shades grew to In 2001, Mastey acquired Baxter, which was designed by Marc Atlan, employs ink-splattered 34, and sheers were also added to founded in 1965 by Baxter Finley. “There was graphics, but instead of using real ink, they are the existing lipstick range. literally a case [of the original Bravado fra- created using foil. Also, the scents’ cartons are Formulas are now also grance] left when I came on board; fast forward free of glue. Each cylindrical glass bottle also free of parabens, dyes a couple of years, I decided to bring [cologne] has the ink-splattered effect, out of which the and talc. back, but I didn’t want it to smell like the origi- number 2 or 3 takes shape. Kramer, most re- nal,” Mastey said. Albert Giordan photographed in-store visu- cently of Nature’s The first formula, which was blended by fra- als that will be used to support the scents. Also, Bounty, also launched grance supplier Belmay, will be “archived,” ac- more than 10,000 samples of the colognes will be an ad campaign, a cording to Mastey, who noted that Belmay also distributed in stores. An ad visual for Mirabella. first for Mirabella, did the new scents. which is rolling out He added that Bravado 2 has an now. Four trend collections are under way, too. edgy, citrus and musky accord, while Mirabella, which is sold in 2,000 salons, spas and beauty supply Bravado 3 has more soapy, clean and stores nationwide, also plans to expand to Far East Asia and Canada softer notes. this year, Kramer said. While the 20-item Baxter groom- The brand competes with Jane Iredale and TIGI, and Mirabella ing range (in addition, Baxter mar- contends it is the leading brand used by salon professionals with kets candles) is carried at roughly $20 million in retail sales for 2008. Wholesale sales of pro makeup 180 independent boutiques, the are around $107 million, according to Professional Consultants & exclusive distribution deal with Resources, and is a category that is steadily growing. Barneys represents the first time the Despite the economic landscape, which is taking a toll on salons brand has partnered with a major as customers stretch out their visits, Kramer said Mirabella’s busi- specialty store retailer. ness has not been negatively affected and in fact, has grown over For the April launch, Barneys lo- the past year. cations in New York, Chicago, San “As the economy has changed, salons have lost a turn a year. Francisco, Beverly Hills, Las Vegas Cosmetics sales will replace lost profit as the customer doesn’t come and Dallas are to take on the two coin as often. It’s a great investment for salons at this time. Our busi- lognes. While the length of the exclu- ness is growing because of this,” said Kramer. sive with Barneys has yet to be deter- Kramer came on board just as Mirabella’s founder, Christy mined, Mastey said he sees the total Thurston, announced her retirement. Mirabella continues to be number of stores eventually carrying owned by John Maly, a distributor of professional salon products. the scents branching out to about 20. — Andrea Nagel This is about the same number of Baxter of California’s Bravado 2 cologne. 14 WWD, friday, march 13, 2009

The HBA Report WWD.COM Expo Shows Natural Firms Upbeat Despite Economy

ANAHEIM, Calif. — Those in the mainstream products, according to Kiss My Face vice beauty industry could use a dose of what- president of marketing Lewis Goldstein. ever natural beauty brands are taking. Besides kids, makeup has been a solid At Natural Products Expo West, which performer for select natural beauty brands. took place March 5 to 8 in the convention cen- Woodstock, N.Y.-based Primitive, already ter here, some 53,000 attendees scoured the in 200 doors, is expecting to enter Sprouts booths of 1,900 vendors of food, health, pet, al- Farmers Market and Sunflower Farmers cohol and beauty merchandise. The group of Market soon and quadruple its sales this beauty products vendors, dwarfed by the oth- year, according to founding partner Nancy ers in the 300,000-square-foot trade show Caigan. Mirran Raphaely, chief executive space, was among the most upbeat about officer of Dr. Hauschka Skin Care, said business prospects, and the progress makeup is the brand’s second-largest cat- being made by companies toward trans- egory and was the fastest-growing category parency and healthy formulations. last year with a 34 percent gain. For fall, the The Organic Consumers Association brand is releasing a new eye shadow palette, helped generate the positive vibe by a Rouge Powder Duo and Volume Mascara in releasing updated product screening pearl anthracite, all priced from $30 to $55. results for 1,4-Dioxane, a known car- Building on the success of its Hawaiian cinogen and manufacturing by-product. Islands-oriented products, Hain Celestial Twenty-three products from 16 brands Group-owned Alba Botanica is launching a containing potentially dangerous levels Natural products from Dr. Hauschka, rainforest line in June with 19 skin, hair and last year made strides toward eliminating Kiss My Face and Alba Botanica. body stockkeeping units priced from $9.95 to the petrochemical. Products with the USDA $25.95. Featured ingredients are tiger nut to Organic seal, such as Dr. Bronner’s, Intelligent Nutrients because various product categories continue to be boost collagen production, açai to combat free radi- and Terressentials, had no 1,4-Dioxane, and Alba, promising. cals, andiroba oil to help repair skin, cupuaçu butter Citrus Magic and Nutribiotic, targets of a lawsuit by the Kid and baby products, for instance, are a focus. for hydration, brazil nut oil to slow skin aging, copaiba California Attorney General filed in June, reformulated Julie D’Angelo, a sales coordinator for Manhattan to make hair shine, passion fruit oil to soothe skin and to net products free or nearly free of 1,4-Dioxane. Beach, Calif.-based Little Twig, said the brand’s sales the antioxidant buriti. “By creating an idea of a place “This is a huge improvement for the natural prod- increased 70 percent last year, and it is now carried and a location, that idea becomes more powerful,” ucts industry,” said David Steinman, who oversaw in roughly 1,300 doors, including Whole Foods and said Mac Tillman, Alba’s vice president of marketing. the tests for the OCA, an organization with more than Wegmans. Next month, Little Twig will introduce an Befitting the maturation of the natural beauty 500,000 members. “It differentiates what it means to unscented 2.9-oz. SPF 15 Mineral Sunscreen for $20.99. products industry, brands have been reviewing their be natural now from mainstream.” Oakland, Calif.-based brand 100% Pure has soft packaging and formulas, and a slew of product re- What also differentiates the natural beauty and launched a kids line on Bath & Body Works’ Web site, vamps is hitting the market. Kiss My Face has re- personal care industry from the mainstream is that but will officially launch ice cream-themed products placed its Obsessively Organic line with a 13-item it is not careening off the economic cliff. Many natu- priced around $5 to $25 in late summer. Kiss My Face Potent & Pure facial care system priced from $15 to ral beauty brands at Expo West, although expressing introduced the line Obsessively Natural Kids with $21. Additional brands in the process of or wrapping the requisite uncertainty about sales for the remain- nine products ranging from $5.99 to $10.99 about six up a repackaging or reformulation are EO, ShiKai, der of this year, recently experienced strong growth months ago and, in the first three months, exceeded Nature’s Gate and Whole Foods’ 365 private label. and were sanguine about their long-term potential the annual sales of the brand’s previous children’s — Rachel Brown Privé Products Enters Green Arena Mills Opens TriBeCa Salon Hairstylist Laurent DuFourg hair from straight and fine envisions someday developing a fully to thick and curly will be the eco-friendly salon from scratch, but next product in the Concept for now he is attempting to raise the Vert assortment. bar for green hair care with the new Concept Vert will be sold in Privé Products line Concept Vert. roughly 500 salons in the U.S.

Launching on April 22 — Earth Jackie Applebaum, chief exec- a Day — Concept Vert’s first two prod- utive officer of Privé Products, r t Mit

ucts, Rejuvenating Pure Shampoo said economic uncertainty r for $28 and Rejuvenating Pure made calculating a revenue Conditioner for $30, are pack- projection for Concept Vert aged in sturdy aluminum that can this year nearly impossible, but Sarah Mills’ new studio.

be returned to Privé Products via expressed confidence about Robe Photo by salons for reuse. The amount of the line’s positioning and dis- product in a 7-oz. can is equivalent closed she has ordered the SARAH MILLS IS UPGRADING. THE BRITISH to at least 14 ounces because only minimum of 30,000 cans. hairdresser — lauded for her killer men’s haircuts a quarter-sized dollop of Concept “We have had a tremendous — has relocated, opening a 1,200-square-foot stu- Vert’s shampoo or conditioner is amount of interest from salons dio space in New York’s TriBeCa neighborhood. A needed for a head of hair. that want green product. They former protégé of Vidal Sassoon and John Frieda, “I really think the planet needs don’t feel there is enough of a Mills was working out of her SoHo apartment for it big time,” said DuFourg. “It is selection out there,” she said. the last five years, but decided to trade up once her not just a shampoo with no pre- “Because the product itself is business began to grow. servatives and no animal testing. so unusual, I think we are going “I used to be able to do clients out of my loft qui- We need to go beyond that.” He to get a tremendous response.” etly and practice my yoga,” said Mills, an aficionado stressed that Concept Vert doesn’t About two years ago, of the exercise form. “But then everything took off, sacrifice performance for the great- DuFourg and Applebaum wres- and I simply needed more space.” er good. “There are a lot of things tled control of Privé Products Mills is intent on keeping the new salon inti- on the market that pretend to from Procter & Gamble Co. The mate and homey, much like her former studio. She be green, but they don’t de- beauty behemoth had picked installed three separate stations and plans on hir- liver,” he said. “I know the up Privé Products when it ac- ing a small staff so she can “come off the chair a product is really working.” quired Wella, which, in turn, bit” and focus on other aspects of the business, like Concept Vert started with garnered the Privé Products starting a hair care line for men. the premise that its formula license when it acquired “Big salons are great for some people, but it’s should be free of many hot- Graham Webb. Privé Products not for me,” Mills said. “I think there is a need in button ingredients, includ- Privé’s Concept Vert line. markets 25 stockkeeping units. New York for intimate spaces — service, quality ing parabens, sulfates, gluten After P&G was out of the pic- and no ego.” and phlalates. The shampoo and conditioner are certi- ture, DuFourg told WWD in 2007 that he planned Mills designed the space with her friend Scott fied Environmentally Preferred Products, meaning 50 to grow Privé Products into a $20 million brand in Newkirk, a fashion stylist who branched into in- percent of the ingredients are sourced from replenish- two years. The troubled economy has blunted those teriors. The goal was to keep everything clean able materials and that volatile organic compounds are plans. Applebaum said Privé Products pulls in under and peaceful, with burlap curtains, organic wood 50 percent lower than typical for the category. $10 million in annual revenues and was profitable in fixtures and neutral color palettes. Mills said she It took DuFourg more than two years to perfect November, December and January. She added she’d eventually wants the space to house art exhibitions the soufflélike formula, which contains açaí and be “happy” with 10 to 15 percent growth this year. and showcase new jewelry designers. babassu oil extracted from palms to strengthen and “We have a much better understanding of the busi- “I’m calling it a studio, but it’s more like an art revitalize hair. Before application, users are in- ness, and we have streamlined the back end so we space,” Mills said. “I think it would be great to have structed to add water to the shampoo and rub their run very efficiently,” said Applebaum. “That was not things constantly changing in here rather than hav- hands together with conditioner on them to generate the case when P&G was running it.” ing one space looking the same all of the time.” creamy foam. A mousse intended for customers with — R.B. — Caroline Tell Junior (right)

WWD, FRIDAY, MARCH 13, 2009 15 WWD.COM Swatch Net Aeffe’s Ferretti Touts Core Focus During Crisis Slips 17.4% By Andrew Roberts group is focusing further on cost rational- exchange rates for the periods to which ization in all its divisions.” they refer. By Ellen Groves MILAN — Aeffe SpA executive chairman For the 12 months through Dec. 31, net As of Dec. 31, net financial debt reached Massimo Ferretti issued a rallying cry to the profits at the Italian fashion group, which 66.8 million euros, or $94.2 million, climb- PARIS — Switzerland’s Swatch fashion industry Thursday, despite seeing also owns the Pollini brand and produces ing from 38.5 million euros, or $56.7 mil- Group on Thursday said net his own group’s earnings cut in half in 2008. collections for Jean Paul Gaultier, among lion, a year earlier. The group ascribed the profits fell 17.4 percent last year “A crisis doesn’t always have to be seen others, fell 49.9 percent to 7.7 million euros, hike to investments, share buybacks and an and announced “a cautious but as a negative,” Ferretti said. “This is the or $11.3 million. Stripping out noncash ex- increase in net working capital. not pessimistic outlook” for time when companies need to focus strongly traordinary costs related to asset impair- Sales at Alberta Ferretti and Moschino, early 2009. on their core business, on streamlining costs ment in 2008 and one-off deferred tax and li- which together account for more than two- The maker of Omega, Swatch and on improving efficiency. Aeffe is facing abilities in 2007, earnings fell 25.2 percent. thirds of the group’s turnover, increased and Breguet watches saw net the current situation with this attitude.” Revenues edged up 0.5 percent to 294.7 3.5 and 4.4 percent, respectively. However, profits fall to 838 million Swiss He added: “The entire Aeffe manage- million euros, or $433.6 million, due largely business was down at all other brands, francs, or $776.4 million at aver- ment team is focused on the group’s main to gains in emerging markets. At constant falling 2.6 percent at Pollini, 5.5 percent age exchange rates for the pe- brands, in particular Alberta Ferretti and exchange and excluding the effects of the at Jean Paul Gaultier and 23.8 percent at riod. The group, whose brand Moschino, in order to keep product inno- sale of a stake in the Narciso Rodriguez Blugirl, Authier, Narciso Rodriguez and portfolio also includes Jacquet vation as strong as ever and to continue brand to Liz Claiborne Inc. in May 2007, Basso + Brooke combined. Droz, Blancpain and Glashütte to create highly desirable collections, all sales gained 3.2 percent. The company did Aeffe released the figures an hour before Original, said marketing costs this supported by a distinctive communica- not break out fourth-quarter figures. the close of the Milan Bourse, where its stock for the Beijing Olympics im- tion strategy. Clearly, at the same time, the Dollar figures are converted at average fell 0.9 percent to 0.44 euros, or 56 cents. pacted its operating margin in the second half. As reported in January, ADVERTISEMENT the group’s full-year net sales inched up 0.5 percent to 5.68 billion Swiss francs, or $5.26 billion at average exchange, im- THE POWER OF WORDS: pacted by a drop in demand in watches and jewelry in the final months of 2008. “Even the luxu- Learning from the Experts at Cosmoprof Talk ry brands could not escape this unfavorable trend,” the company stated. While allowing the first few months of 2009 will remain chal- lenging, Swatch said it expects confidence to be restored in the second half. “This fundamental confidence and the long-term perspective of the group is un- derpinned by the daily monitor- Rebecca ing of continued consumer de- Nicky Kinnaird Jan Nordstrom Arnold Morrice Williams Jacques Chibois Christine Nagel Elie Papernik Pamela Roberts mand experienced in our own retail stores, as well as the current size of the order books,” the “Talk is cheap” goes the old saying. But it depends on who’s talking. When the firm stated. speaker is an expert the listener comes away enlightened and inspired. Four Talents Swatch is forecasting modest That’s how it will be for the attendees of two special events scheduled as part of the Cosmoprof growth for the full year 2009. Talk program at Cosmoprof, the world’s most important international beauty event, taking place for a Fragrance April 2-6 in the Fairground District of Bologna, Italy. April 3, 2:30 – 4:30 pm COSMoff Lab (New Trends Area) Riva to Exit The ideal perfume both expresses Unconventional Beauty: Women in Power and provokes desire, emotion and passion. This special workshop gathers Post at BFC Successful entrepreneurs from all corners of the spiration and how a retailer can be sure their together four extraordinary individu- By Louis Bartlett globe show and tell how to build a beauty brand concept will strike a chord. als — a chef, a fragrance developer, a in today’s marketplace Jan Nordstrom Arnold: Co-founder and design director and a fragrance de- LONDON — Hilary Riva will step Style Director of CND, Jan Nordstrom Arnold sign consultant — to bring to life the down as chief executive of the April 3, 10:30 am – 12:30 pm knew a good idea when she saw it in 1979. The process of creating such a fragrance. British Fashion Council as part Sala Italia – Palazzo Congressi idea, developed by her father, was a revolution- They’ll share their passion, ideas and of a management restructuring Motivated by passion, innovation and dedi- as the organization marks its ary product that promotes greater nail strength know-how with the goal of creating an 25th anniversary. cation, beauty industry entrepreneurs prosper and flexibility. Today, CND sells more than 300 unforgettable fragrance that everyone The BFC said Riva, who had when conditions are right, as they transform products to over 8,000 salons in 50 countries. in attendance can experience. worked part time and on a pro- their dreams into reality. Not surprisingly, Arnold will talk about putting the nail cat- This interactive workshop will take bono basis, would leave next many are women whose innate understanding egory at the forefront of fashion as well as how place at the Cosmo Lab, new space month. Simon Ward, who is head of the beauty consumer gives them an advan- one finds innovation, how to use consumer of operations, and Caroline devoted exclusively to introducing in- tage. Still, obstacles remain. research and which image-building tools can Rush, head of public relations, novative and emerging trends in the will succeed her as full-time co- Cosmoprof gathers three accomplished fe- propel a brand. beauty industry. chief executives. male entrepreneurs to talk openly about what Rebecca Morrice Williams: Frustrated Jacques Chibois is the chef and Riva, who took on the role it takes to build a beauty empire today. because she couldn’t find the perfect founda- founder of La Bastide Saint Antoine in four years ago, has been an out- Nicky Kinnaird: Fifteen years after open- tion, Australian make-up artist Rebecca Mor- Grasse, France. spoken proponent of British ing a shop in London that showcased an edited rice Williams decided to create it herself. The Christine Nagel is a Creative Direc- fashion, fighting to raise the selection of beauty products, Nicky Kinnaird result: The BECCA brand, which launched in profile of London Fashion Week tor for Fragrances Resources (France). oversees 62 Space NK stores in the UK, 13 in and defending its place in the 2001 and is now available in 22 countries. Elie Papernik is the Creative Di- European calendar. the US, a growing spa presence and an online Williams will talk about successful brand- rector for Centdegrés, a design agency She was also instrumental boutique. ing in the prestige market, how to determine for food and perfume. in setting up the Model Health Kinnaird will talk about her company’s the characteristics of consumers in your mar- Pamela Roberts is a fragrance de- Inquiry in 2007 to look into the path to success, addressing such questions as ket and the most important elements for devel- sign consultant with more than 15 welfare and treatment of run- how to get started, where a retailer finds in- oping and growing your business. way models and helped to se- years experience in the field. cure funds from the London For complete details about Cosmoprof and the Cosmoprof Talk program, visit www.cosmoprof.com to download a brochure. Development Agency for BFC initiatives. Riva will become the chairman of a new committee that will focus on future development projects for the BFC. Harold Tillman, chairman of the BFC, called Riva a “catalyst for positive change,” and said Ward and Rush would drive new initiatives and opportunities to aid the growth of British designers. 16 WWD, FRIDAY, MARCH 13, 2009 WWD.COM American Apparel Scrambles for Financing Continued from page one America $60.6 million. That latter line of credit becomes due on March 21 if American Apparel cannot renegotiate the April 20 maturity date of its SOF loan by next week. Dov Charney, founder and chief executive officer of American Apparel, has been forced to make two personal loans to the company since December, totaling $6.5 million, in order to keep merchandise flowing into stores and to finance the opening of new stores. An announcement of either new financing arrangements or a Chapter 11 filing should come within a week, or as early as today. Charney declined comment. “If you don’t have the money to repay a loan and your creditors are not willing to negotiate, then you don’t really have another option outside Chapter 11,” said Michael Temin, an attorney who specializes in bankruptcy law at Philadelphia- based firm WolfBlock and teaches at the University of Pennsylvania. “A Chapter 11 filing would give American Apparel some breathing room and an opportunity to restructure their debt.” American Apparel has ostensibly been one of retail’s success stories during the current economic downturn. Consumers have responded well to its blend of af- fordably priced basics with hipster appeal, marketed with bold store designs and provocative advertising helmed by the controversial and col- orful Charney. The company posted a 10 percent same-store sales gain for the fourth quarter of 2008 and a 2 s Dov Charney percent gain in January. But those figures fell to earth A Chapter 11 filing would give in February, when the company A Chapter 11 filing would give posted a 9 percent comps decline, American Apparel some breathing which Charney partly attributed “ to an extra day in February 2008 American Apparel some breathing room and an opportunity to due to a leap year, as well as can- nibalization of sales from existing room and an opportunity to restructure their debt. stores to newer stores. The company opened 81 stores in 2008 and an- restructure their debt. other three last month, bringing its — Michael Temin,” WolfBlock total door count to more than 260. The company has posted strong most recent issue of Forbes, Dell is worth $12.3 billion, and the earnings growth over the past sev- bulk of his money is invested via MSD Capital. eral years and analysts have been American Apparel is due to report fourth-quarter earnings on Monday. In the third bullish on the stock, but its rapid quarter ended Sept. 30, the company’s net income slid to $2.3 million, down from $6 expansion was financed in part via million in the year-ago period, due to a $13.2 million one-time cost associated with loans from Bank of America and distributing shares to company employees. Excluding that event, earnings climbed 85 SOF. SOF Investments (Special percent to $11.1 million, as total sales grew 45.2 percent to $154.8 million. Opportunity Funds) is an arm of Alluding to a potential Chapter 11 filing by American Apparel, Howard Davidowitz, MSD Capital LP, the financial firm chairman of Davidowitz & Associates, a New York-based retail consulting firm, noted: that manages the wealth of com- “You have a game of chicken here. American Apparel can tell the banks they are being puter mogul Michael S. Dell, the An American impossible and that he’s going to file Chapter 11. American Apparel has no hard assets chairman and ceo of Dell Inc., and Apparel ad. and, if it liquidates, the banks will get pennies on the dollar. Charney needs to put the his wife, Susan. According to the banks up against the wall, and the question is whether or not the banks blink.” Ebb in Demand Hits Luxottica Net UNITE HERE Faction Looks to Form Separate Group By Arnold J. Karr By Kristi Ellis ident of UNITE HERE’s hospitality division, who has locked horns in a prolonged power Luxottica Group SpA reported Thursday that a sharp re WASHINGTON — The breakaway group of struggle with Bruce Raynor, general president duction in demand, compounded by a $20 million write-off, reduced fourth- UNITE HERE, claiming to represent 150,000 of UNITE HERE and leader of the UNITE quarter profits by 60 percent. members, is moving to form a separate en- faction looking to dissolve the five-year-old The Milan-based eyewear giant said it intends to reduce its global store tity after 15 local boards voted to disaffili- merger, said they will continue to pursue legal count, currently over 6,250, by 2 to 3 percent during 2009. ate from the parent union last Saturday, of- recourse to keep the union intact. In the fourth quarter, net income fell to 38.8 million euros, or $51.2 million, ficials said Thursday. “I think it is laughable for them to claim from 96.6 million euros, or $140.4 million, a year earlier. Excluding a credit Three joint board managers — from New that they can move forward from a legal write-off on the sale of the Things Remembered chain in the more recent pe- York, Philadelphia and a Western States re- perspective,” the HERE spokeswoman said. riod, profits were off 44.2 percent to 54.1 million euros, or $71.3 million. gional — said they and other officials repre- “This is far from over, legally.” Sales in the three months ended Dec. 31 were up 4 percent to 1.24 billion senting the local boards that voted to disaf- She said a hearing has been set for euros, or $1.63 billion, from 1.19 billion euros, or $1.72 billion. Sales were flat filiate had resigned from the parent union Tuesday in U.S. District Court in Manhattan at constant exchange rates and down 5.5 percent at constant exchange when and are holding discussions on forming a in relation to a lawsuit filed by Wilhelm results of Oakley Inc., acquired for about $2.1 billion in November 2007, are new organization. and the HERE faction. The spokeswoman included as if it were acquired at the start of 2007. Edgar Romney, executive vice president confirmed a federal judge did not grant the The company noted the global slowdown had hurt margins for both whole- of UNITE HERE and manager of the New request for a temporary restraining order sale and particularly retail operations in the quarter. York area metropolitan joint board, said the to stop the disaffiliation votes, but did not Luxottica calculated dollar figures at average exchange for the periods to HERE faction was unsuccessful in secur- comment on the validity of the votes. which they refer. ing a court order to halt the disaffiliation UNITE HERE’s general executive board “We have already implemented a series of measures that will enable us votes last week, which cleared the way for is also slated to meet here today, and Raynor to rapidly and flexibly adapt to the new environment and that will both con- the joint boards to move ahead to break up plans to attend, according to a spokesman. tribute to boosting sales and streamline our cost structure across all divi- the union. One option the group is consid- Raynor has contended the HERE faction sions and geographic regions,” said Andrea Guerra, chief executive officer ering is becoming a division of the Service led by Wilhelm has acted in a fraudulent of Luxottica. Employees International Union, which has and deceitful way and hijacked financial For the full year, net income fell 22.9 percent to 379.7 million euros, or some two million members. resources and exerted undue control over $558.5 million, while sales topped 5 billion euros for the first time, rising “As far as we’re concerned, what we did the union. Wilhelm has denied all the alle- 4.7 percent to 5.2 billion euros, or $7.65 billion. Earnings landed at the low was legal and proper, and we’re moving for- gations and claimed Raynor and the break- end of the company’s forecast, revised in October, of EPS, excluding special ward,” said Romney. away group of joint boards is violating the items, of between 0.96 and 0.98 euros. But a spokeswoman for John Wilhelm, pres- international union’s constitution. WWD, FRIDAY, MARCH 13, 2009 17 WWD.COM MEMO PAD PUSHING THE RESET BUTTON: The changes just keep coming at “You know that every woman has at least one bridesmaid Interview, with more staff appointments and yet another new dress in their closet,” said Modern Bride publisher Jennifer look. The April issue will unveil a different logo and layout Hicks at the kickoff event, also attended by “Gossip Girl” crafted by new design team M/M Paris (the handwritten logo actress Kelly Rutherford, who donated an Alice + Olivia dress, is actually influenced by the logo used in the Seventies). The and Kim Raver from “Lipstick Jungle.” Raver donated an duo took over in February after Interview parted ways with “accessible and appropriate” Vivienne Tam dress. “I didn’t co-editorial director Fabien Baron and creative director Karl want it too long or too short and have some mother or father Templer, and clearly M/M Paris has wasted no time in undoing really angry at me,” she said. “That night, for a teenager, the work Baron and Templer had done. They’d introduced their you remember for the rest of your life, so I wanted something own new look for the title a mere eight months ago. Interview Cinderella-esque.” also named Joe McKenna as fashion director to replace Templer. The event included a silent auction that evening of celebrity McKenna had been a freelance stylist working on various dresses donated by Beyoncé Knowles, Fran Drescher, Jennifer fashion and lifestyle titles. Hudson, Queen Latifah, Eva Longoria Parker and Julia Roberts, Meanwhile, the Brant Publications-owned magazine among others. On Saturday, more than 700 dresses were promoted internally to fill the publisher’s post after its first donated that were then available for 80 young girls from several candidate backed out. Associate publisher David Hamilton was local high schools. Modern Bride also roped in new advertisers promoted to vice president and publisher of the title, which he Elizabeth Arden and Cuisinart, and re-signed Maybelline joined in 2002 as a sales director. He fills a role left vacant after many years of the brand sitting out the bridal category. in February after former Elle associate publisher Samantha Maybelline saw it as an opportunity to have consumers try its Fennell was hired as Interview’s publisher but ended up not new Superstay line of makeup, and brought celebrity makeup taking the post after Baron and Templer abruptly left. Renata artist Chuck Hezekiah to give makeovers. Lopes-Merriam has been promoted to vice president-associate Meanwhile, Hearst on Saturday will launch nationwide publisher sales and marketing from advertising director. Donatemydress.org, a network of local organizations that The new sales executives will have a challenge ahead collect slightly worn prom dresses. An event with celebrity of them even steeper than most in this tough economy: spokesperson, “Twilight” actress Ashley Greene, will be held at Interview’s ad pages dropped 27 percent through 2008, to Saks Fifth Avenue’s New York flagship, and the retailer will also 656, and another 38 percent through the first quarter, carrying have drop-off boxes at its stores nationwide through March 31. 114 ad pages. — Stephanie D. Smith In that time, participants will receive a 20 percent discount on purchases throughout the store. SECOND LIFE FOR DRESS OF THE MOMENT: For a teenage girl, Saks advertises in Hearst’s fashion magazines but not often the most important part of prom is getting the perfect in its teen titles or Web sites, and believes the program dress. But during tough economic times, big-ticket fashions are is an opportunity to reach younger consumers. “We have often passed over — and magazines are scaling back consumer a strong special-occasion business, but young women marketing programs left and right. Bucking both trends, attending prom are not our typical customers,” said Kimberly Modern Bride and Hearst Magazines’ digital division have Grabel, Saks’ senior vice president of marketing. “We love launched programs that will give prom dresses to young teens this organization because the idea to share something as in need while connecting their readers and marketers to charity. emotional as a prom dress with girls who can’t afford [one] W

Modern Bride last Friday launched Project Bridesmaids, to was a very strong tie-in for us.”

where young women donate their old bridesmaid dresses FLA Hearst will also launch an online auction on CharityFolks. and formal gowns to Planet Hope, a charity run by Kelly and com, where through March 27, teens can bid on prom MAX

Sharon Stone (yes, that Sharon Stone). The charity will give by dresses donated by Miley Cyrus, Taylor Swift, Eva Amurri, Nikki The racks at Modern Bride’s Project the gowns to high school students nationwide who need The racks at Modern Bride’s Project Blonsky and others. All proceeds will benefit local chapters of Bridesmaids event on Saturday. dresses for the big dance. photo Donatemydress.org. — S.D.S. 18 WWD, friday, march 13, 2009 WWD.COM Financial For full daily stock changes, see WWD.com.

Aéropostale Unveils P.S. Kids’ Concept 10 Best Performers By Jean E. Palmieri addition to the new P.S. doors. The company said it expects first- DAILY COMPANIES P/E Volume Amt Aeropostale Inc.’s long-awaited quarter earnings per share to be be- children’s concept now has a name and, tween 22 and 24 cents, including a 3-cent- High Low Last %Change beginning in mid-June, a home market. a-share charge for the recent shuttering As the New York-based specialty re- of its 11-unit Jimmy’Z business. tailer disclosed a 5.4 percent increase in For the full year, Aéropostale’s prof- 0.87 0.52 Charming Shoppes (CHRS) - 2101775 0.82 +51.85 fourth-quarter profits late Thursday, it its rose 15.7 percent to $149.4 million, said it will open 10 stores under the P.S. or $2.21 a share, from $129.2 million, 8.75 6.51 Hanesbrands (HBI) 4.8 4535140 8.33 +29.95 From Aéropostale banner this year clus- or $1.74 a share, in fiscal 2007. Sales tered around the New York metropoli- climbed 18.5 percent to $1.89 billion tan area. The stores will target boys and from $1.59 billion while comps were up 14.00 12.25 Men’s Wearhouse (MW) 7.8 4911993 13.92 +28.06 girls aged seven to 12, and offer “trend- 8 percent. right” casual apparel and accessories at Also on Thursday, Pacific Sunwear of 4.71 3.60 Oxford (OXM) 3.7 196174 4.60 +24.66 “compelling values,” the company said. California Inc. reported that it swung to The girls’ merchandise assortment a fourth-quarter loss and more than dou- 1.40 1.08 Stein Mart (SMRT) - 55303 1.39 +20.87 will be larger than the boys’, said Mindy bled the full-year loss from a year ago. Meads, Aéropostale’s president and For the three months, the loss was 1.86 1.48 Developers Diversified (DDR) - 9647413 1.86 +19.23 chief merchandising officer, but “boys is $27.1 million, or 42 cents a share, a great distinguisher for us” since most against income of $5.2 million, or 7 mall competitors focused on this age cents, in the year-ago quarter. Excluding 0.94 0.83 Parlux Fragrances (PARL) - 252687 0.92 +18.83 group concentrate on girls. special items, the fourth-quarter loss Julian Geiger, chief executive officer, was 47 cents a share. 24.13 20.68 Weyco (WEYS) 14.4 27403 24.13 +15.73 commented, “We have watched with Sales in the fourth quarter fell 8.5 amazement for years how moms come percent to $351.7 million from $384.3 1.44 1.15 Glimcher (GRT) - 236994 1.40 +15.70 shopping to Aéropostale with an older million as comps decreased 10 percent. and younger sibling, with the younger Sally Frame Kasaks, chief executive 1.50 1.25 Tween Brands (TWB) - 688916 1.48 +15.63 sibling desperately trying to fit into the officer, said last year PacSun took a pro- merchandise that was obviously too big active approach to business, closing the for them.” underperforming D.e.m.o. division, ex- With the launch of P.S. by Aéropostale, iting the lagging sneaker business and preteens “can finally find merchandise consolidating to a single distribution 10 Worst Performers that looks like Aéropostale, that comes center. The retailer exceeded its goal of from Aéropostale but which will have a a merchandise mix of more than 80 per- DAILY COMPANIES P/E Volume Amt different brand representation, differ- cent apparel, 51 percent of it in juniors. ent name than Aéropostale.” The company has deferred nearly High Low Last %Change In the quarter ended Jan. 31, the all of its store renovation projects into company posted net income of $68.2 mil- 2010, and plans to open just three stores lion, or $1.01 a diluted share, up from in 2009. Over the next three years, it 0.18 0.15 Phoenix Footwear (PXG) - 1000 0.15 -25.00 $64.7 million, or 95 cents a share, last will evaluate for renewal leases cover- year. Sales grew to $690 million, 16.7 ing nearly one-third of its current fleet percent above the comparable period’s of 932 units. It expects to close 35 to 50 1.16 0.92 Quiksilver (ZQK) - 2148448 0.96 -17.95 $591.3 million. Comparable-store sales stores a year as leases expire. rose 6 percent in the quarter. PacSun expects a first-quarter loss of 2.13 1.80 Liz Claiborne (LIZ) - 2709071 1.86 -11.85 At the flagship division, Meads said 26 to 31 cents a share with a same-store that in the fourth quarter, women’s comps sales decline in the low-20s. 4.80 4.44 Destination Maternity (DEST) - 2815 4.55 -8.63 sales were up in the midsingle digits For the year, the loss was $63.8 million, while men’s rose in the high-single digits. or 96 cents, from a loss of $30.4 million, or 3.16 2.83 Bulgari * (BUL:MI) 10.8 4796361 2.9775 -7.24 Tops were a standout for both genders. 44 cents, in 2007. Sales declined 3.9 per- The company, with 874 units, plans cent to $1.25 billion from $1.31 billion. 0.32 0.26 Charles & Colvard (CTHR) - 7166 0.26 -7.14 40 new Aéropostale stores this year in — With contributions from A.S. 26.95 24.70 Swatch Group * (UHRN:SW) - 278126 25.6 -5.54 Retail Sales Climb, but Remain Weak 3.16 2.75 Ann Taylor (ANN) 5.0 3926026 2.95 -4.53 By Liza Casabona is a reminder that “not all households are 2.48 2.20 CCA (CAW) 4.5 7771 2.387 -4.52 subprime,” he said. February marked the WASHINGTON — Retail sales resisted second month that retail sales have shown 0.74 0.69 Eddie Bauer (EBHI) - 8963 0.69 -4.17 generally dismal economic conditions some resilience, but not all economists for the second month in a row, but see reason for hope in the numbers. economists said stores still face major The relatively positive news about * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on hurdles to recover from negative year- sales helped to elevate retail stocks, the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss over-year trends. which managed their third consecutive francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. Sales at specialty stores in February day of advances as the S&P Retail Index increased 2.8 percent from January jumped 3.4 percent to 259.06. Also ex- and department stores gained 1.1 per- tending their streaks to a third day, the cent for the month, the U.S. Commerce Dow Jones Industrial Average reclaimed Department said Thursday. the 7,000 plateau, rising 3.5 percent to Charlotte Russe Up for Sale But compared with a year ago, special- 7,170.06, and the S&P 500 made it back ty store sales declined 3.1 percent to $18.23 just above 750 after rising 4.1 percent. By Alexandra Steigrad holder H.I.G. Capital Partners LLC of- billion, while department store sales “The nice little bounce in January and fered to buy Russe for between $9 and dropped 5.4 percent to $16.15 billion. February for apparel is welcome, very wel- Charlotte Russe Holding Inc. is $9.50 a share, or $188 million to $199 mil- All retail and food service providers come,” said Charles McMillion, president now officially in play. lion. Russe rejected the bid, calling it an reported a seasonally adjusted decline of and chief economist at MBG Information After a review of its options starting “opportunistic proposal.” 0.1 percent in February compared with Services. “But I suspect that it’s principal- in January and skirmishing with share- A month later, B. Riley & Co. and the previous month. Compared with a ly the result of deep, deep, deep discount- holders last year, the teen retailer said Plainview Capital LLC both criticized year earlier, sales tumbled 8.6 percent. ing from retailers that had awful sales in Thursday it is putting itself up for the company’s rejection of the bid, and The retail sales change for January October, November and December. I am sale. “The sale process will enable the Riley threatened a proxy fight if it wasn’t compared with December was revised up- anticipating weak sales ahead. This is in- company to obtain formal indications reconsidered. ward to an increase of 1.8 percent from a ventory reduction, if not going-out-of-busi- of interest from potential buyers,” Wedbush Morgan Securities retail previously reported uptick of 1 percent. ness sales and discounting reflected in the Charlotte Russe said. “There can be no analyst Betty Chen said a new buyout “It’s a decent looking report on retail receipts.... I suspect that this means when assurance, however, that a transaction bid would most likely be lower than sales,” said John Lonski, chief economist we get information about the first quarter will result.” KarpReilly and H.I.G.’s original pro- at Moody’s Investor Services. “This may be that retailer profit was severely cut.” On Tuesday, the San Diego-based posal. “Looking back, I bet they prob- an early indication that we’re beginning Rosalind Wells, chief economist for specialty chain issued a proxy state- ably consider that bid a pretty good to form a definitive bottom for consumer the National Retail Federation, said ment urging investors to reject the offer,” she said, explaining the econo- spending and that perhaps we might be the retail sales growth in February was slate of nominees proposed for its my has further weakened the retailer’s out of recession by summer. The consum- surprising. “While we are seeing some board by shareholder, and rejected business. er means everything to the U.S. economy. growth in consumer spending,” Wells suitor, KarpReilly Capital Partners On Thursday, Charlotte Russe’s These are not horrible numbers.” said, “it remains to be seen whether LP. Russe said that if elected, the shares closed at $6.57, up 8 cents or 1.2 If the trend continues to improve, it this trend will continue. Given the state nominees, which included KarpReilly percent. could indicate a narrowing of the year- of the economy, NRF is still expecting partner Allan Karp, could “delay and Based on KarpReilly’s most recent to-year contraction, Lonski said. While year-over-year sales declines through disrupt” the strategic evaluation of its push to nominate new directors, Chen unemployment claims have continued to the first half of the year with a slight business. said it might still be interested in acquir- increase, the improved retails sales report turnaround at the end of 2009.” In November, KarpReilly and share- ing the retailer. WWD, FRIDAY, MARCH 13, 2009 19 WWD.COM Burlington Copes With Labeling Flap VF Buys Remainder of Mo Industries By Rosemary Feitelberg ferings to find the fraudulent ones, Burlington By Julee Kaplan to open the store sometime in the coat Factory executives asked to return all the third quarter. ExEcutivEs at Burlington coat Fact- remaining merchandise to the levy group, vF corP., WHicH First ac- Emquies, who has been serv- ory are miffed about the negative publicity they which immediately complied. quired one-third of Mo industries ing as chief executive officer and are dealing with for unknowingly selling coats “it’s not our job to decide which ones have inc. capital stock last June, has president, will continue with the with designer labels glued on to less expensive problems and which ones don’t. this is not purchased the remaining two- company as founder and ceo, re- ones. the levy group, which supplied the misla- something we would check for — we buy hun- thirds of the los angeles-based porting to Egeck. Jonathan saven, beled Perry Ellis and Joseph abboud men’s top dreds of thousands of coats a year,” graham firm, which owns the Ella Moss and who has been chief financial -of coats and raincoats, has taken full responsibility. said. “We’re kind of the first victim here, and splendid contemporary brands. ficer and chief operating officer, once alerted to the problem follow- Perry Ellis and Joseph abboud are the second the greensboro, n.c.-based has been promoted to president. ing a consumer-sparked investigation in and third ones.” vF has acquired the firm from Pamella Protzel scott will contin- connecticut by WFsB, a cBs affiliate, levy group president Donald levy said, “a its founder, Moise Emquies, and ue in her role as creative director Burlington coat Factory conducted its own guy working for a newly acquired division took summit Partners, a private eq- for both brands. national investigation and is in the process it upon himself without the knowledge or con- uity and venture capital compa- according to vF, adding these sent of the levy group to put labels on those ny. vF is paying $161 million for brands to the portfolio should con- coats. We certainly don’t condone it. as soon as the remaining two-thirds of Mo tribute approximately $70 million This is not something we we heard about it, we had the coats removed industries, plus the repayment of to 2009 revenues and be slightly from the stores.” $47 million in existing net debt, accretive to earnings per share; would“ check for — we buy Perry Ellis international, an $864 million which will be funded through vF’s these expectations were incorpo- operation, is working with the levy group to cash flow from operations. the rated into vF’s revenue and earn- hundreds of thousands of make sure safeguards are in place to avoid such acquisition agreement in June ings guidance provided on Feb. future incidents, said Francisco Hoffmann, vice included a provision allowing vF 10. vF said it expects the brand’s coats a year. president of investor relations and strategic ini- to acquire the remaining stock in long-term revenues to grow 10 per- tiatives. “We want to stress the levy group is early 2009. cent to 15 percent annually. — Gary Graham,” Burlington Coat Factory being very cooperative. We believe this was an “up until now we have been talk- splendid and Ella Moss are pri- honest mistake or oversight,” he said. ing in broad terms about the growth marily sold in high-end specialty of pulling the entire shipment of men’s wool However, Perry Ellis is reserving the right to of these brands,” said Mike Egeck, stores and better department coats from its stores. the levy group, which take legal action, should the commitment the president of vF’s contemporary stores such as Bloomingdale’s, holds the license for Perry Ellis and Joseph levy group made to the company not be ful- brands coalition. “We see a lot of op- Barneys new York, neiman abboud, “immediately took the blame” and filled, Hoffmann said. portunity to expand internationally, Marcus, shopbop.com, nordstrom agreed to take the entire order back, accord- Ja apparel, which owns the Joseph abboud and vF has a lot of the infrastruc- and saks Fifth avenue. combined ing to gary graham, senior vice president of trademark, also is weighing its legal options, ac- ture there so we can do that.” revenues of the two brands were marketing for the 408-unit Burlington chain. cording to Marty staff, chief executive officer. in addition to closing the deal $95 million in 2008. Perry Ellis and Joseph abboud labels had shoppers who purchased mislabeled mer- on thursday, Egeck said the other companies in vF’s con- been ironed on Wal-Mart’s private label, chandise can return their coats to the chain group has signed a lease for the temporary brands coalition in- george, and Macy’s private label, alfani. for a full return and a 20 percent discount for first freestanding splendid store clude the seven For all Mankind graham estimated that mislabeled coats ac- a future purchase. Burlington coat Factory on robertson Boulevard in los and lucy brands, which were counted for 25 percent of the shipment, or less will continue to do business with the levy angeles. the store, Egeck said, both acquired in July 2007 for an than half of 1 percent of the chain’s total coat group, but graham said, “We’re exploring will house the women’s, men’s and estimated $885 million, and John inventory. rather than weed through the of- our options.” children’s collections. vF hopes varvatos men’s sportswear.

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