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Full Scallop Charm Starts from the Inside Out RICHEMONT NET SOARS/2 ANN TAYLOR LOFT’S BIG ARRIVAL/11 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • November 20, 2006 • $2.00 Accessories/Innerwear/Legwear Full Scallop Charm starts from the inside out. When it comes to the season’s bras and panties, the attractive elements are sheer fabrics in a soft palette and a little bow here, delicate embroidery there. Here, Pfi ff’s scallop-edged nylon and Lycra spandex bra and bikini bottoms. Calvin Klein Home’s cashmere blanket. For more lingerie, see pages 6 and 7. All Ready and Waiting: Stores Prep for Big Rush As Black Friday Nears By David Moin and Sharon Edelson ANO.COM; STYLED BY BOBBI QUEEN STYLED BY ANO.COM; lack Friday is getting brighter. PRI B Though holiday sales results are ultimately unpredictable and determined by the inevitable last- minute rush to malls, retailers are surprisingly upbeat about the outlook, AS, BOTH FOR ARTISTSBYTIMOTHY predicting significant sales gains. “Everything seems to be very well aligned,” said Jane Elfers, chief executive officer of Lord & Taylor. “We are in an apparel cycle right now.” There are plenty of indications they USH AND MAKEUP BY MICHELLE YUR USH AND MAKEUP BY have the wind at their backs: Sales have been strong so far this fall, despite mild temperatures in the Northeast; the See Retailers, Page 15 /ELITE; HAIR BY JACQUELINE B /ELITE; HAIR BY PHOTO BY THOMAS IANNACCONE; MODEL: JO PHOTO BY 2 WWD, MONDAY, NOVEMBER 20, 2006 WWD.COM Richemont Profi ts Surge By Samantha Conti WWDMONDAY Accessories/Innerwear/Legwear LONDON — Booming sales of jewelry, leather accessories and luxury clothing at Compagnie Financière Richemont drove net profits up 22 FASHION percent to 645 million euros, or $815.9 million, on A sultry palette, subtly alluring shapes and lots of lace make for a gently a 15.7 percent rise in sales to 2.3 billion euros, or 6 sensual lingerie season, giving off a slightly nostalgic, fl irtatious air. $2.91 billion, in the first half ended Sept. 30. This compares with net profi ts of 529 million euros, or $655.9 million, on sales of 1.99 billion GENERAL euros, or $2.47 billion, in the corresponding period Though holiday season sales results are ultimately unpredictable, some a year earlier. Currency conversions were made at 1 retailers are predicting signifi cant gains and counting key categories. average exchange rates for the respective periods. Booming sales of jewelry, leather accessories and luxury clothing drove The company said in a statement Friday that 2 Richemont’s net up 22 percent to $815.9 million in its fi scal fi rst half. nearly all product categories registered double- digit sales increases worldwide, and that Dunhill Montblanc has been expanding its scope. Clover Corp., which has owned Robert Lee Morris Inc. since 1998, has and Lancel — both of which are undergoing a re- increased 11 percent, boosted by the company’s 2 parted ways with its founding affi liate, M. Fabrikant & Sons. launch — had performed well. recent purchase of its retail network in China. At BEAUTY: Clinique has its eye on a greater share of the moisturizing Executive chairman Johann Rupert said in Lancel, sales climbed 10 percent. Losses at Dunhill 3 market with the January launch of All About Eyes Rich. the statement that Richemont’s performance for and Lancel were more than halved in the period, the full 2006-07 fi scal year would be “signifi cantly the company said. INNERWEAR: The Victoria’s Secret Fashion Show made its Hollywood ahead” of last year, despite tough comparisons “We’re starting to see Dunhill turn a corner, al- 8 debut to a crowd used to scanty outfi ts, red carpets and paparazzi. with fi scal 2005-06. though it’s still early days, and we won’t be turn- ACCESSORIES: Isaac Mizrahi has gone high-low and has now found In the statement, he said strong consumer ing a profi t there this year,” said Grieve. “There 9 middle ground in a handbag line for his Isaac Isaac Mizrahi bridge label. demand at retail, coupled with double-digit were stupid mistakes made in the past — with late sales growth in markets such as Asia-Pacifi c, the deliveries, for example — and we’ve been trying FINANCIAL: The fl urry of M&A activity that started in late 2005 is expected Americas and Europe, contributed to strong half- to play catch-up. But we’ve been tightening up the 12 to continue through 2007 for the retail and apparel sector. year results. “During the fi rst half of the year, ship, and we’re optimistic.” Richemont has benefi ted from strong demand in Grieve also said brands such as Cartier and its major markets,” said Rupert. Montblanc rapidly have been developing their leath- EYE “The group has a globally diversifi ed clien- er accessories businesses. “We’re getting to grips with There was no shortage of unsolicited friendly advice at Thursday’s tele and has demonstrated its capacity to develop leather goods as a proper product area,” he said. 4 CFDA/Vogue Fashion Fund awards dinner at Skylight Studios. quickly in new market areas — for example, China Sales at Richemont’s “other businesses” cat- and Russia — at the same time as achieving good egory, which includes Chloé, rose 46 percent, and Classifi ed Advertisements.............................................................16-19 growth in established markets,” he added. Rupert said in the statement that Chloé doubled To e-mail reporters and editors at WWD, the address is fi rstname. However, Richemont spokesman Alan Grieve its sales in the period, thanks to retail store open- said the company was not expecting the 16 per- ings and the broadening of its product ranges. [email protected], using the individual’s name. cent sales growth it witnessed during last year’s Geographically, all regions performed well, WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Christmas season. He said the company would not with sales in Asia-Pacifi c rising 20 percent, fol- VOLUME 192, NO. 107. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one be surprised by growth along the lines of 11 per- lowed by the Americas with 19 percent, Europe additional issue in January, two additional issues in March, May, June, August, October, November and December, and three cent in the coming months. with 18 percent and Japan with 14 percent. additional issues in February, April, and September by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. Indeed, in the month of October, overall sales With regard to future acquisitions, Grieve was PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and C.O.O.; grew by 11 percent. “November and December are tight-lipped. Over the past 18 months, Richemont Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; David critical months for us, and barring any avian fl us has been whittling down its brand portfolio to focus Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice Presi- or terrorist attacks, we can build on the momen- on its core jewelry, watch and accessories busi- dent_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. tum in the fi rst half. But you can never be sure; nesses, and has sold off companies including men’s Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. we’re not in the business of selling cigarettes or wear fi rm Hackett and Paris retailer Old England. 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RT0001. Canada post return undeliverable baked beans, and we constantly rely on our cus- Last month, Richemont purchased Minerva, Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, tomers’ feel-good factor,” he said. the Swiss specialist watch parts maker, and ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR Richemont said jewelry sales in the fi rst half Richemont’s strategy going forward is to focus on DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four rose by 13 percent, with double-digit growth re- its core businesses. weeks is required for change of address. Please give both new and old address as printed on most recent label. Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other ported by Cartier and Van Cleef & Arpels. Sales “We do lots of little acquisitions aimed at devel- U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. from Richemont’s specialist watchmakers rose 14 oping our competence and business areas. We’re First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, percent, while those of writing instrument compa- really building on that,” said Grieve. and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195.
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