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RANKING THE POWER RETAILERS/15 THE GOLDEN EGON/20 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • June 14, 2004 • $2.00 Accessories/Innerwear/Legwear Winning Stripes NEW YORK — Crisp, clean-cut looks are resort classics, and so are pristine white and bold stripes. This time around, everything from simple pinstripes to classic seersucker patterns is getting spiced up with bright hues. Whether these patterns turn up on a simple , an easy or narrow pants, the results are fresh and appealing. Here, a , sweater and pants, all in cotton, from H Hilfiger. For more on H Hilfiger and the season, see pages 4 and 5.

Smashing Stereotypes: Brands Chase Ethnic Markets By Karyn Monget beautiful, especially in lingerie. intimate apparel companies such as NEW YORK — How to appeal to the Minority niches are increasingly Sara Lee Corp, VF Corp., The melting pot of multicultural seen as having untapped potential in and consumers can be an enigma, but the $12.4 billion innerwear market Inc. are arming their marketing there’s one common denominator for and lingerie specialists are arsenals with consumer-specific marketers: All women want to look responding to the opportunity. Major See Lingerie’s, Page 6 PHOTO BY ROBERT MITRA ROBERT PHOTO BY 2 WWD, MONDAY, JUNE 14, 2004 WWDMONDAY Strong Sales Propel in 1st Qtr. Accessories/Innerwear/Legwear GENERAL NEW YORK — Inditex Group’s verted to dollars at average ex- in the prior-year period — 61 of INNERWEAR: The potential of the $12.4 billion ethnic market has lingerie first-quarter profits expanded change for the corresponding which were opened in the first 1 firms scrambling to take advantage of the growing opportunity. 20 percent on strong sales and periods. quarter — for a total a 1,983. For Inditex Group, the Spanish operator of the , and stores, gross margin gains. Net sales for the quarter ad- the full fiscal year, Inditex antic- For the three months ended vanced 22.9 percent to 1.2 bil- ipates opening another 315 to 2 saw first-quarter profits expand 20 percent. April 30, the Arteixo, Spain- lion euros, or $1.48 billion, from 365 stores, led by Zara, which is Designers are taking a sophisticated but relaxed approach to resort, with based operator of the Zara’s, 979.4 million euros, or $1.06 bil- slated to add 105 to 115 doors 4 looks ideal for sailing the Mediterranean or lounging around Palm Beach. Bershka and Oysho nameplates, lion, a year ago. At constant cur- worldwide. among others, reported net in- rency, sales would have in- Also aiding the bottom line ACCESSORIES: Italian luxury firm Bottega Veneta is expanding in Germany, come of 98.5 million euros, or 16 creased 24 percent, the compa- was an increase in gross margin 8 with a new store in Hamburg that followed units in Berlin and Munich. euro cents a share, versus 82.1 ny said in a statement. to 52 percent of sales. Although While retailers fret over the effects high fuel prices are having on spending, million, or 13 euro cents, a year Inditex attributed the sales that’s far above the industry av- 10 shippers said the impact on transportation costs may already be showing. ago. In dollars, earnings were growth to store openings and erage, Inditex said that it is fo- $121.1 million, or 19 cents, up higher comparable-store sales. cused on boosting its gross mar- The IAF World Apparel Convention focused on the complexities and from $88.7 million, or 14 cents, By quarter’s end, the company gin even further. 17 uncertainties of a new trade game next year when quotas are eliminated. last year. Euros have been con- operated 349 more stores than —Dan Burrows Egon von Furstenberg, a man of many personas, from Prince Charming to 20 playboy, died on Friday in a hospital in Rome at the age of 57. First-quarter profits for Inditex Group, operator of Zara’s, rose 20 percent. Obituaries...... 16, 20

Classified Advertisements ...... 18-19 To e-mail reporters and editors at WWD, the address is [email protected], using the individual’s name.

WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 187, NO. 123. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue in January, May, June and November; two additional issues in February, April, September, October and December; and three additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. 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Four weeks is required for change of address. Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Chinese Executives Denied Visas ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. By Scott Malone Chinese government officials tries have responded in kind. MONDAY: The Commerce Department reports on im- said representatives of 250 com- China, for instance, no longer al- ports for April and retail sales for May. NEW YORK — Chinese officials panies had applied for visas. lows U.S. citizens seeking visas Quicksilver reports on second-quarter sales and organizing a trade show to be “Because they could not get to apply by mail. earnings. held here this week said Friday the visas, they could not come Zhang said for the 2001 edi- that U.S. consular officials in here to conduct regular commer- tion of the show — before the TUESDAY: Ye ar 2004 China & Apparel Show, China denied visas to half the cial activities. This is certainly a attacks — more than 80 percent New York (through Thursday). 420 executives who applied to regret,” said Zhang Yan Kai, ex- of potential exhibitors who ap- The Labor Department releases the Consumer exhibit at their event. ecutive vice chairman of China’s plied for visas were granted Price Index for May. As a result, only 160 manufac- Sub-Council of Industry them. By 2002, that number Phillips-Van Heusen Corp. annual meeting, New turers will be exhibiting at the and the Textile Industry slipped to 70 percent and, in York. Year 2004 China Textile and Chamber of Commerce, a promo- 2003, it dropped to 60 percent. Apparel Trade Show, which runs tions organization closely linked Federal agencies were closed WEDNESDAY: The Federal Reserve releases the Beige Tuesday through Thursday at to the Chinese government. “The Friday to observe a day of Book report on economic conditions. the Jacob K. Javits Convention visa officers never told them why mourning for former President China International Gold, Jewelry & Gem Fair, Center. Show organizers and their visas were denied.” Ronald Reagan. Calls to U.S. Guangzhou, China (through Saturday).

COMING THIS WEEK Barcelona Bridal Week (through Sunday). Because they could not get the visas, they“ could not come here to conduct regular commercial activities. This is In Brief certainly a regret. ● SCORE ONE FOR ARMANI: Giorgio Armani is lending a help- — Zhang Yan” Kai, Chinese Textile Representative ing hand to sports, saving an historical and successful Milanese basketball team, the Olympia Basket, from folding for lack of funds. The designer will invest $3.7 million, or 3 million euros at Speaking at a Friday after- Citizenship & Immigration current exchange, over three years, and will be the main spon- noon press conference, Zhangling Services, which handles such sor of the team, which will be renamed Armani Milano. “I Yuan, an economic and commer- visas, were not returned. didn’t want such an important Milanese team to fade away,” said cial consul at China’s consulate According to the U.S. State Armani. “I don’t play basketball, but my brother, Sergio, and sis- general in New York, said he was Department’s Web site, visa ap- ter, Rosanna, did, so I did it for them and for the city of Milan.” particularly troubled that in- plications can be denied for a creasing numbers of Chinese ex- variety of reasons, including ecutives seeking to attend trade health, past criminal activity, as- shows had been turned away by sociation with terrorist groups U.S. consular authorities in or membership in a Communist China. Zhang and Zhangling political party. China is run by a Corrections spoke in Mandarin Chinese Communist government. through an interpreter. Zhang said the security con- The photograph on page 42 of the Friday issue of WWD Beauty After the Sept. 11, 2001 ter- cerns about Chinese apparel Biz was taken by Walter Bibikow/Getty Images. This information rorist attacks, U.S. authorities and textile executives were mis- was inadvertently omitted. stepped up security practices al- placed. Of the 1,000 Chinese ex- ● ● ● lowing foreign nationals entry ecutives who have attended past Dana Classic Fragrances will launch Vetiver and Musk, two into the country. As the U.S. has editions of the event, he said, men’s fragrances, in the U.S. in July. The scents were incorrectly made it more difficult to get “None of them stayed in the U.S. identified as women’s fragrances in a story on page 7, May 28. entry visas, many foreign coun- All of them went home.” g{tÇ~ çÉâ

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fxtÇ 5cA W|wwç5 VÉÅuá 4 WWD, MONDAY, JUNE 14, 2004 Easy Street NEW YORK — Designers are taking a sophisticated but relaxed approach to resort, showing looks that would be ideal for sailing the Mediterranean — or just lounging around Palm Beach. At H Hilfiger, for example, stylish pastimes provide inspiration. Trenchcoats and minis with leather piping reflect an equestrian theme, while preppy houndstooth and metallic would look just right at Mar-a-Lago. There’s a rock ’n’ roll motif, too, expressed in bright and metallic sequin tops. Meanwhile, at National, designer Ennio Capasa has also embraced color for resort. Ruby reds and mint greens are shown throughout the collection, along with a seersucker featuring red stripes. The usually sharp tailoring is softer, and there are lots of and rich-looking leather pieces. Vivid shades are the key to the Dana Buchman collection this season, too. There are bright and multicolored , aqua leather and even mink fun furs in pink and ice blue. As a designer practically synonymous with striped knitwear, Sonia Rykiel is in her element for cruise. It’s the perfect moment for her signature navy-and-white sailor styles and for multicolored pullovers shown with denim pants. printed with the word “croisiere” or cruise H Hilfiger’s are paired with black knit pants satin for evening, while her turquoise , silk and silk are as appealing tank and cotton as a dive into the Indian Ocean. pants with a beaded stripe.

Sonia Rykiel’s striped cotton dress.

Sonia Rykiel’s striped sweater and denim jeans. both in cotton. WWD, MONDAY, JUNE 14, 2004 5

Costume National’s washed and cotton denim jeans.

Dana Buchman’s leather jacket and cotton denim jeans.

Costume National’s cotton seersucker jacket and cotton denim jeans. PHOTOS BY TALAYA CENTENO, GEORGE CHINSEE, DOMINIQUE MAITRE AND ROBERT MITRA GEORGE CHINSEE, DOMINIQUE MAITRE AND ROBERT CENTENO, TALAYA PHOTOS BY 6 WWD, MONDAY, JUNE 14, 2004

Innerwear Report Lingerie’s Ethnic Eq

Continued from page one 2020, Hispanics are projected to reach 74 million. They in the U.S. Women head more than 40 percent of the coun- research aimed at the multiethnic consumer, as well as will represent the largest minority group in America. try’s 8.7 million African-American households, and they ambitious advertising and promotional campaigns de- Citing “tremendous growth potential,” Sara Lee typically spend an average of $1,000 a year on apparel. signed to capture this burgeoning audience. Intimate Apparel is expanding its reach into the Packaged Facts, a unit of Marketresearch.com, has Their efforts come even as company executives pri- Hispanic community with visuals of a multicultural assessed that Asian-Americans represent the nation’s vately acknowledge that Hispanic, African-American and range of models on new packaging for its Her fastest-growing and wealthiest ethnic group, which is Asian-American consumers represent a market that tra- Way brand of underwear and intimates, and is airing expected to control an estimated $347.5 billion in buy- ditionally has been misunderstood and underserviced. ads for its Hanes brand on Spanish-language TV. ing power by 2006, a 41 percent increase from 2001. A number of misconceptions abound over who the David Robertson, director of advertising for the There are more than 11 million Asian-American con- ethnic consumer is. Is she average size, curvy, petite, Hanes brand at Sara Lee Corp., said Hispanic con- sumers in the U.S., and by 2050, the market is expected tall, short or plus size? And what does she want? sumers represent the most lucrative venue to grow new to reach 40 million, according to Focus USA. , designer brands, comfort or function? business. “In 2004, Hispanics are the largest minority at The winning formula to tap into these disparate ethnic The answer is, all of the above. As a result, cracking 43.5 million people — 14.7 percent of the total U.S. pop- formulas appears to be an image of universal appeal. It is the mind-set of the multicultural market and shaking off ulation,” said Robertson. “Hispanics are younger and conveyed through visuals and products that do not segre- archaic perceptions remains a challenge for the fashion have larger households [3.5 versus 2.4 non-Hispanic na- gate a product base for one minority. Instead, savvy mar- apparel industry, said Iris LeBron, fashion director of in- tionally]. The 2002 buying power of Hispanics was $580 keters said the idea is to nurture the loyalty and trust of a timate apparel, swimwear and activewear at Invista Inc. billion, and by 2007, this will have jumped 60 percent to diverse range of consumers through a sense of identity as “There’s definitely tremendous potential in the mul- reach at least $926 billion. The mass market channel well as pride and empowerment, a modern-day approach tiethnic market, whether the consumer is young, that women from all walks of life can relate to. old, slim or plus size. There tends to continue to Harriette Cole, a former consultant for Sara be a generalization and a stereotyping,” said JLo Lingerie by Lee Intimate Apparel and author of “Vows,” a book LeBron. She added that this “judgmental attitude” Jennifer Lopez’s girly (Simon & Schuster 2004) aimed at African- can limit a brand’s reach to niche segments such sheer at American couples, stated: “Every woman wants to as a hip-hop generation of shoppers who wear Warnaco. look and feel beautiful. When it comes to intimate urban brands; Latinas looking for sexy, over-the- apparel, it’s even more difficult to find the right lingerie, or boring, lackluster products for the product — it’s a very delicate purchase. Manu- plus-size woman. facturers need to value their customers and devote Executives from the manufacturing, retail and time and resources to understanding the customer. marketing arenas agree the key challenge is learn- The bottom line is they need to reach out through ing to understand the cultural divides and how advertising and promotions. But they cannot make they affect different taste levels. They acknowl- the assumption the customer will buy it anyway. edge that a main reason for the delayed response They need to respect the customer.” to ethnic consumers is a preconceived notion that Renée Fraser, a consumer psychologist, head of ethnic often is a code word for plus sizes, a classi- her own research firm and a professor at the fication that has long been ignored by retailers Annenberg School of Communication at the Uni- and vendors. versity of Southern California who teaches re- Along with beauty products, lingerie is one of search, public relations and marketing, described the most important culture-sensitive categories. the multicultural market this way: “We look at it on While psychographics and consumer research are a segmented basis. It’s very important to evaluate standard practices at companies, executives have each group separately, because they have distinct discovered over the past year that producing and values, as well as cultural differences, that reflect advertising that are desirable, their consciousness. There’s a certain ideal of sen- fashionable and functional for a diverse consumer sual curves that all cultures want to achieve. And base is not an issue of race, a consumer’s color or there’s an ideal body type that all women want. cultural background. Rather, it’s about projecting “But there are subtleties, a certain respect re- self-confidence, a celebration of sensuality and a garding their lifestyles, the parties they have, the smart, modern attitude. food they eat and family. These subtleties say, ‘You Lingerie is a fashion mainstay of every fashion- understand me,’ and that’s something manufactur- conscious woman’s , and specialists such ers and retailers should respect. Not doing that is as Victoria’s Secret and Frederick’s of Hollywood a sign of disrespect. It certainly undermines a are addressing the multicultural customer in their woman’s confidence. It’s terribly wrong, and they catalogues with a diverse representation of models, need to change their approach,” said Fraser. from Hispanic to African-American. As an example, Outlining different consumer profiles, Fraser ob- the last Victoria’s Secret TV fashion show in served: “Latina customers are a very large and in- November had scores of Latin and Hispanic models. fluential segment of the market to retailers. They The strength of ethnic shoppers also can be want to celebrate sexuality and sensuality, and ex- seen at The Avenue, a 535-unit specialty chain. perience a real sense of celebration of who they are Terri Meichner, senior vice president of the at parties and outside activities, and there’s also an chain’s Avenue Body label and a former vice presi- We target all of our brands as a expression of a quiet, subdued personality. We also dent and divisional merchandise manager of “ see great appreciation for bright, vibrant colors. Federated Merchandising Corp. and Kmart, said lifestyle statement, and we try not to “The African-American market is a segmented 25 percent of its intimate apparel and market in itself,” continued Fraser. “We’ve identi- sales are generated by ethnic consumers. exclude or alienate any woman. fied several groups, including a sassy, fun, young In terms of dollar volume sales of , panties ” group involved in celebration of sensuality and a and shapers in 2002, NPD Fashionworld reported — John Wagstaff, The Warnaco Group great pride in her look. She wants to utilize that as the two highest-volume channels at retail for mul- much as possible. There’s also a sophisticated tiethnic consumers were specialty stores, of which the has the largest share of this consumer segment on ap- group that has brand-name recognition and style associ- lion’s share is controlled by Victoria’s Secret, and mass parel, more than non-Hispanic whites.” ated with different aspects of culture. They are highly merchants, dominated by Wal-Mart. At specialty stores, Regarding the spending power of African-American aspirational and try to be cosmopolitan.” African-Americans spent $242.4 million on lingerie; consumers, Michelle Ebanks, group publisher of Regarding Asian-American consumers, Fraser noted: Hispanics, $223 million, and Asian-Americans, $25.7 Essence magazine and Suede, a fashion magazine for “Boy, it’s really segmented. The Chinese are very differ- million. At mass channels, African-Americans repre- “women of color” to be launched in September, noted, ent from the Koreans and Japanese. There are some sented $242.2 million; Hispanics, $170.6 million, and “In 2003, buying power totaled $688 billion for all similarities, but you want to be attractive in terms of Asian-Americans, $4.4 million, according to NPD data African-Americans. Spending power has gone up sub- communication and a style point of view.” supplied by other sources. stantially and has nearly doubled in 10 years. There are However, Josie Natori, chief executive officer of According to 2000 U.S. Census data, Hispanics, consumers that marketers haven’t even targeted, Natori Co., countered: “To an extent, there are certain African-Americans, Asian-Americans and other non- whether through indifference or ignorance.” She added cultural commonalities among Asians, a sense of mod- Caucasian women account for 30.1 percent of 143.4 mil- that, according to estimates from the Publishers esty, and it ranges from country to country. But for the 27 lion females in the U.S. About half the total U.S. popula- Information Bureau, buying power among African- years I’ve been designing, grading and sizing [lingerie], tion of 282 million people are plus size, according to re- Americans increased 21 percent from 2002 to 2003. it’s always been with the Asian woman in mind, like my- ports from the Census Bureau and Sara Lee Corp. The Ebanks further noted: “It’s not about a product self. She loves my colors and prints. But, over the past average dress size is 14, and makers are increasing- aimed at a specific ethnicity. Our consumer would like five years, I’ve expanded to include larger sizes for dif- ly boosting cup sizes to the DD and DDD range. products marketed to a general audience. It’s analogous ferent consumer segments.” According to Focus USA Database, an Internet con- to General Motors. GM doesn’t advertise a Chevy or SUV Addressing the full-figured issue, Harvey Cormier, a sumer marketing resources company that tracks 105 to an ethnic audience. They don’t think we need to professor of philosophy of race at Stony Brook million households and 203 million individuals, there make a car just for us [African-Americans].” University, observed: “While it is of course true that are well over 35 million Hispanics in the U.S. That pop- According to Focus USA database, the number of women of all ethnicities come in all sizes, there is in ulation is expected to grow to 50 million by 2005, and by African-American consumers currently exceeds 35 million fact a correlation among women between economic WWD, MONDAY, JUNE 14, 2004 7 quation

class and weight. When you’re struggling to survive, you eat cheaper, starchy food, and you don’t have time for Pilates classes or money for Jenny Craig. And, of course, there is a correlation between ethnicity and economic class. Moreover, along with hair texture and skin color, body shape can also be a racial characteristic.” The plus-size misnomer is a sore point for scores of eth- nic consumers. Products for larger figures typically are merchandised away from the popular contemporary mix in obscure, unattractive areas at major stores with signage and code words such as “Woman’s World” and “Full Figure.” Retailers acknowledge it’s a disheartening message for the ethnic and plus-size shopper, who typically switch- es to retail channels such as specialty chains that actively market to plus sizes and a range of ethnicities. They include Catherine’s, Delia’s and Anthropologie, along with plus- size specialists such as Lane Bryant, Lerner’s, The Avenue and Ashley Stewart, as well as Wal-Mart. Cormier insisted the “most important” element to the equation of race and fash- An ad featuring Queen Latifah and the Curvation brand, Maidenform’s ad in Spanish and a Latina-inspired ad for ion is “tendencies. There may be typical the Real Sexy by brand. black and white qualities, but they have more to do with class than ethnicity. And than-average woman, said John Wagstaff, right now that, in order to be successful, retailers have in any case, no sweeping generalizations president of prestige brands at Warnaco. to pick the battle they’ll be in. We have to really focus on about black people or members of other “We target all of our brands as a lifestyle our targets and opportunities.” ethnic groups are possible for either mar- statement, and we try not to exclude or Addressing the confusion between ethnic and plus- keters or social engineers.” alienate any woman. Obviously, our JLo lin- size consumers, LoRe said: “The customer, regardless Cole’s take on the issue of shape and gerie has a very special Latin influence. of culture or ethnicity, is bigger today, whether she’s size was this: “Sure, there are a lot of plus- However, there is a broader audience we are from a German, Latin, African-American or French size African-American women. But it just targeting through ads in fashion magazines. background. Large sizes should be a part of your assort- shows what kind of stereotype manufactur- The first national launch will be in Latina ments to be successful.” ers produce for. It’s well known that the magazines in September,” said Wagstaff. Explaining The Avenue’s approach, Meichner said: perception of African-American women is Robertson of Sara Lee, noted, “Hanes “We make sure everything works both ways. We use black she is substandard. The reality is there are has a strong consumer franchise across all and white models, and we don’t target consumers specifi- full-figured women of all hues. And there’s ethnicities, and has a very well-developed cally. It’s the same way with our products. Our ethnic doors an assumption that white women are all Latino consumer franchise. We are creating sell color a little better, but all doors sell the same product. the same color white. They’re not. There’s an even stronger bond with Latinas via our “We do the same thing with larger sizes. But we do a very small range of color in intimate ap- Spanish-language TV campaign with visu- things differently for ethnic customers in hosiery with a parel for everyone — white, beige, black als from the Hispanic Body Creations [by separate color palette of four additional skin tones in and brown. It would be great to have Hanes Her Way] TV spot, which began run- sheer. We have an ultrasheer product for ethnic doors.” shapewear in a range of brown tones for ning June 3.” The company currently is air- Meichner added that the company is planning to sub- women of color.” ing a second TV ad featuring Hanes Com- stantially grow its lingerie business within the next year Cheryl McCants, vice president of mar- fortSoft underwear for men, and a whole and is currently testing a variety of products for differ- keting for the 170-door specialty retailer section in Spanish is dedicated to Hispanic ent consumer segments. She added that a new large-size Ashley Stewart, which targets full-figured consumers on the Hanes Web site. shapewear group, introduced in late May, called Sexy and ethnic consumers, observed: “We let Making further inroads into the ethnic Secrets, has been a best-selling category. “It has a tag our customers know we’ve got everything niche is Sara Lee’s brand, which line saying: ‘The Hidden Power of Shapewear.’ It’s been you need right here, and that you don’t need will be a sponsor of the Essence Music selling extremely well,” said Meichner. to be singled out. We understand, know who Festival in New Orleans July 2-4. Staged by Regarding what the multiethnic customer wants, Ashley you are, and we get it. Plus-size women Essence magazine, the three-day festival Stewart’s McCants, who also oversees marketing for spend nearly 80 percent more on clothing will feature a number of entertainment Marianne, a 60-unit chain in Puerto Rico, the British Virgin than their contemporary counterparts.” divas including Missy Elliott, Mary J. Blige Islands and southern Florida, said: “An urban woman has a In response to the burgeoning demand and Gladys Knight, while the Playtex tendency to be in the forefront of what’s in fashion and she for innovative product and color options, Solutions Center will focus on empower- sets fashion trends. In our marketing approach, we make intimate apparel companies are taking on ment seminars and bra-fit workshops for sure we have what the customer wants, from product im- new initiatives, including a wider array of African-American women. agery in-store or on our Web site. We use plus-size models, “skin-friendly” body tones by bra special- “Reaction has been very strong to Body women with a certain sex appeal. We’re working on ‘Denim ists such as Maidenform. VF Intimates fea- Bronze, a new basic color for women of Divas’ and ‘Desire Divas,’ a combination of lingerie, appar- tures celebrity spokeswoman Queen Latifah for its year- color,” said Liz Morris, vice president of marketing and el and accessories [promotions]. Lingerie is just as impor- old Curvation line for full-figured women. The company advertising at Maidenform Inc. She noted that three tant to our customer as a dress and a .” also is launching Real Sexy by Vassarette label aimed at other “subtle shades” — Body Beige, Blush Hispanic consumers in contemporary ads that are fresh and Pearl — have had success with Hispanic, and fashion-forward. African-American and Asian-American con- On June 22, Queen Latifah will kick off a Curvation sumers with one of Maidenform’s top-selling “Walk of Confidence” around historic Governor’s Island to bras, One Fabulous Fit by Maidenform. She benefit the Liberty-Ellis Island Foundation Inc. Last year, added that the firm also is advertising in MOTHERHOOD. Queen Latifah told WWD the Curvation brand’s mission magazines such as Latina and People en was to “inspire strength and confidence in all women.” Español. The tag line (in Spanish) translates SIMPLE. Anne Jardine, vice president and general merchan- to “Always Dreaming.” dise manager of VF’s Curvation, Bestform, and mass From a retailer’s perspective, Linda BEAUTIFUL. and private label brands, said, “Curvation is not seen as LoRe, president and ceo of Frederick’s of a brand of color. In our tracking research, Curvation is Hollywood, said reaction from an ethnic con- YOU. consistent with the overall population and splits the sumer base is generated by a wide spectrum way the ethnic population splits — 13 percent Hispanic, of fashion colors and this tag line: “Sexy at 12 percent African-American and Caucasian is the bal- Any Size.” She said a “tremendous” amount ance. Queen Latifah has everything to do with this of business with multiethnic consumers is color-blind approach.” generated at Frederick’s 146 stores. Meanwhile, the newly introduced JLo Lingerie by “We target it as an attitude, and it crosses Jennifer Lopez at The Warnaco Group is being posi- over to all women. Sure, we address multi- tioned as a Latina-oriented line of intimates, but also ethnic consumers, and we use multiethnic has mass appeal on an aspirational level with its models. But women don’t want to be told, Introducing the Lace Molded Underwire . Hollywood connection. In a foray into the Asian- ‘Oh, you’re this [culture], so this is what you One-handed clasp for easy nursing. Soft cotton lining. American field — which is not being advertised as an need.’ We offer sizes from XS to XX large, It’s just as comfortable as it is beautiful. overture to the Asian audience — Warnaco is reintro- and bras from 32A to F cups. The U.S. mar- For information call 800.321.4804. MATERNITY · NURSING ducing a line of bras called Olga Petites for the smaller- ket is so diverse in culture and ethnicity 8 WWD, MONDAY, JUNE 14, 2004

Accessories/Fine Jewelry Report Bottega Veneta’s German Push

By Melissa Drier 206 on Friedrichstrasse and the Hamburg shop at 22 Neuer Wall are around 979 square feet. “You have to be prudent and not exag- HAMBURG — Bottega Veneta is gerate square feet,” Maier commented. “We do things step by on the march in Germany. step.” The Italian luxury leather Designed by Maier and architect William Sofield, the stores goods house opened a boutique in are intimate and understated, and are representative of Hamburg last month, just six Bottega’s global retail design. Signature features include walls weeks after setting up shop in covered with Asahi linen bookcloth, walnut display counters Berlin, and six months after enter- with slide-out presentation panels sheathed in billiard cloth, ing the German market with its vertical window blinds made of palm wood and steel, suede Munich flagship. That’s a very upholstery, custom-dyed New Zealand wool carpets and concentrated push in a retail leather-covered door handles. scene that is anything but buoyant. Given the square footage, however, the new German stores, But creative director Tomas and indeed the existing 65 Bottega Veneta units worldwide, can Maier, who was in Hamburg to carry only a portion of the full Bottega range. That will change toast the latest Bottega door, said with the new Bottega flagship in New York, set to open on Fifth more than his German heritage Avenue and 55th Street in July. With a total of over 10,000 square is in play here. He’s very bullish feet, it will be Bottega’s biggest store in the world, and will fea- about the company’s prospects ture not only all product categories, including luggage, apparel in Germany, noting “if the mar- and home, but will include a showroom as well. ket is lousy, that doesn’t mean it The next major step, according to Maier, is a flagship in has to be lousy for us.” Japan that could house the entire product range. “It would be “Bottega Veneta can be a good fair to the market. We have 30 stores in Japan,” he pointed out. brand for Germany. Germans like “It’s my goal, but it’s a long-term project. It won’t happen the combination of design, quality overnight.” and functionality,” he stated. And Acquired only three years ago by the Gucci Group, Bottega while insiders suggest Germany’s has had “a very fast turnaround and the plan is to break even well-heeled consumers now prefer next year,” a company spokeswoman said. Gucci Group doesn’t to spend their euros away from break out sales figures for Bottega, but Maier said, “The compa- home, where big-ticket purchases ny is doing very well in all three markets — Europe, Asia and the have taken on a politically incor- U.S. Our name recognition and brand awareness are growing.” rect tinge, Maier countered: “If “We’re one of the few that has a product that never goes on you’re hooked to a product, you sale,” the spokeswoman said, “and our performance shows what buy it where you can. This [Bottega this product category can be. Business in China, Hong Kong and Veneta] is limited. If you like it, you Japan is on fire.” She added that business as a whole “is way buy it where you see it, for when above plan.” In one of his last interviews as Gucci’s chief exec- it’s gone, it’s gone.” utive last March, Domenico De Sole said history will show that The response in Berlin and Bottega Veneta’s Hamburg shop Bottega was the “best and most successful” acquisition the Munich so far would seem to bear group has ever made. March 2004 sales, he said, were up Maier out. While neither he nor other company officials would talk figures, more than 60 percent worldwide. he said, “Berlin is doing nicely and Munich is performing very well. Despite Although De Sole and Gucci creative director Tom Ford the climate, German exports are up and there’s been expansion in econom- were responsible for bringing Bottega — and Maier — into ic growth. I don’t see why [the economy] won’t eventually turn around, and the Gucci stable, Maier said he hasn’t felt any aftereffects when it does, we’ll have made the first round. We’ll have contacted the clien- now that there is a new era at the group, which is owned by tele and we’ll be ready.” Tomas Maier the French firm Pinault-Printemps-Redoute. “We had a close All three German stores can be summed up in the German phrase klein aber relationship to PPR before. They’re not people we don’t know,” fein, or small but fine. All are situated on prime shopping streets: The Munich store he said. “And sometimes changes are good. For other people, like at 24 Maximillianstrasse is about 450 square feet, whereas the Berlin door in Quartier Tom and Domenico, too.”

“Accessories will be the engine for the women’s wear will be spearheaded by two other designers, whom Maeder collection,” said Maeder, adding that he expects Hugo Boss declined to name. Turbolente will start Aug. 1, and the others Boss to Relaunch Bags accessories to be a core part of the overall business by 2007. will join later in the month, in time to start work on the fall Hugo Boss posted sales of $421.3 million in the first 2005 collection. NEW YORK — Hugo Boss wants in on the accessories action. quarter of 2004, a 5 percent increase over the same period in But the company is not waiting until next summer to start In an effort to bolster its fast-growing Boss Woman business, 2003. But Boss Woman has been a standout, with more than a generating buzz. In August, the lower level of the brand’s Fifth the firm is relaunching its women’s accessories for fall 2005. 30 percent increase in first-quarter sales. Avenue flagship will be devoted to the current accessories The company bought back the licenses for and Maeder — who joined Boss in January from the S. Oliver collection. “[Our] accessories do quite well already,” Maeder accessories in April (, fragrance and eyewear continue Group, a German maker of men’s, women’s and children’s noted. However, he said they still account for less than 10 to be licensed), and an accessories design team has been hired. , and who had been executive merchandise director percent of the brand’s total business. He’d like to see that “We took [our licenses] back because we believe you should at Harrods of London — anticipates the accessories collection improve to 20 percent with the relaunch. do everything in-house that is related to the core business,” will be positioned against established brands such as Coach selections in the revamped collection will increase said board member Andre Maeder, who oversees worldwide and Furla. But, while he hopes to match them in terms of price from 50 styles to between 120 and 150, and roughly 60 to retailing, shoes and accessories, as well as the subsidiaries in point and image, he’s quick to point out that the overall look 80 bags will be offered, whereas now there are about 25 the U.S. and Japan. will be sexier and edgier than those brands. styles in the line. The company also will introduce women’s Since 1995, shoes and accessories were licensed to MH Sylvia Turbolente, formerly a designer at Fendi, has luggage. Shoes and Accessories. been tapped to design leather goods. Women’s and men’s shoes — Emily Holt

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RIGHT TIMING: The Bongo brand, a division of Candie’s Inc., has entered A Sense of Gioia Spreads on 57th Street FINDINGS a licensing deal with Accutime Corp. to produce a line of watches to By Marc Karimzadeh debut for spring 2005. The collection of interchangeable leather cuff in polkadots, solids and tweeds will retail from $25 to NEW YORK — David and Rafaela Amini are used $35 and will be sold in moderate department and specialty to finding the world’s most exquisite gems, so stores. when it came to selecting a new home for their Paul Frank Industries also has launched a new watch division, PF jewelry collection, Gioia, the father-and-daughter Timing, under a licensing agreement with watch company Vestal. Paul team made no compromises. Frank has included watches in its collection for the past four years, Last Wednesday, the jeweler relocated from a but the deal with Costa Mesa, Calif.-based Vestal will allow for a jewel box-like boutique at 485 Park Avenue here to broader range of items, including wall and alarm clocks and limited- an airy and more visible space at 110 East 57th edition watches. Priced from $55 to $250 retail, the collection will Street, between Park and Lexington Avenues. range from colorful vinyl designs to higher-end limited-edition pieces. “I think the whole area is developing with the Come fall, PF Timing will hit stores such as Bloomingdale’s and new Bloomberg building and Le Cirque moving in, Villians in San Francisco. and it’s wonderful traffic,” Rafaela Amini said. The 1,100-square-foot unit has 425 square KANGOL HOPS DOWNTOWN: British accessories brand Kangol already feet dedicated to selling. Its feel is intimate yet has a store on the Upper West Side, and is adding temporary digs contemporary: While the original store was downtown for the month of June. Kangol has taken over a space on heavily upholstered and draped in curtains, Rafaela Amini Crosby Street to sell its and bags, as well as stage a number of

the new boutique makes much use of natural DAVIDPHOTOS BY TURNER fashion, music and art events. A charity auction of products daylight. The overall effect is friendlier and embellished by celebrities is set for June 30, and all proceeds will go

▲ Gioia’s rubellite and briolette diamond . more accessible than traditional jewelry salons to the American Film Institute. that are often intimidating. flocked to the Park Avenue boutique to find dia- Designed by Michael J. Valente, the boutique monds of varying hues like gray and green, FAMILY MATTERS: Every celebrity Samantha features recessed macassar ebony and black moonstones, lavender sapphires and orange seems to be getting in on fashion, Mathis lacquer display cases that line the walls. Each mandarin garnets. The beauty of each stone is but don’t count on actress display is outfitted with chocolate brown often used to maximum effect in designs Samantha Mathis to be among boiled wool, and the boutique is filled with inspired by nature, including butterflies, them. She does, however, have silk cushions, adding a rich texture to the seashells, dragons and coral branches. bejeweled roots. Viennese fine space. A Neptune bust covered in semi- “The basis of my designs are a mixing jewelry design firm A.E. Köchert precious stones and shells is a prominent between forms of nature and the incredi- has been in her family for more design element. ble variations of color you can find in than 200 years, most recently Launched in 1997, Gioia, which means stones,” Wassilief said. taken over by her uncle and cousin joy in Italian, was a result of the duo’s shared This year, Gioia is projected to rake in after her grandfather’s passing. fascination for all things beautiful and aes- as much as $3 million — including sales at Reproductions of some original thetic. David Amini also owns Beauvais wholesale accounts such as Bergdorf and in the Carpets, a top destination for antique rugs Goodman. collection are on display at the on the Upper East Side. In the new boutique, customers will find Neue Galerie on 86th Street in “I have always loved jewelry, I curved 18-karat gold and multicolored dia- New York. Several pieces also have have been around it all my life,” mond, ruby or sapphire stacking bands, from been made specifically for the Rafaela Amini said. “When I was $800 to $4,000; an emerald, ruby and gallery and select items are for younger, my father would take me sapphire butterfly brooch, for sale. Standouts are a coral beaded down to Chinatown and buy fake $68,000; a South Sea pearl and rope and pink-and-orange jewelry and I would sell it to my diamond necklace, for coral earrings with pink sapphires friends.” $155,000; 18-carat rubellite and white gold. David Amini added: “In the last drop earrings with dangling But Mathis has a couple stunners few decades, I had not seen much briolette diamonds, for of her own. She inherited some Art ERICKSEN KYLE PHOTO BY creativity in jewelry, not since Bulgari $68,000, and a coral branch- Deco pieces that her grandfather made for her grandmother, including a in the Eighties. But then I came across inspired diamond ring, for pair of gold cuff bracelets with swirls of rubies and diamonds. “They just the work of Michel Wassilief [Gioia’s $28,000. sit in the safety deposit box,” she said. “I’m waiting to walk down a designer] at an exhibition in Europe. I “There is something for every- red carpet that’s fancy enough to wear them, and when somebody was very much taken by it.” one,” said Rafaela Amini, adding with asks me what jewelry I’m wearing, I can say, ‘My grandfather’s.’ It’d Gioia quickly established a following a laugh: “Nobody should leave here be sort of sweet.” with socialites and fashion editors who A coral-like diamond ring. without a piece.” NEWEST LINK: Luxury accessories and gift company Links of London opened a flagship at 16 Sloane Square in London on June 1. The 4,700-square-foot space will be home to the brand’s new diamond collection, in addition to limited-edition pieces in 18-karat yellow Bulgari’s Diamond Night and white gold, diamonds, rubies, sapphires and emeralds. The opening on Sloane Square marks the start of the company’s global NEW YORK — Bulgari had what everybody needed on a sweltering night last expansion. In October, Links of London will unveil a 2,600-square- Wednesday — ice. foot store on West Broadway in New York’s SoHo, and the company To launch the brand’s new diamond jewelry collection, Bulgari co-hosted a party plans to open eight more North American boutiques by the beginning with the Friends of New Yorkers for Children. Jennifer Creel, Dayssi Olarte de of 2005. Kanavos, Celerie Kemble, Olivia Chantecaille, Kimberly Guilfoyle Newsom and Nicola Bulgari, Emina Cunmuljaj LOCK JENNIFER GRAY PHOTO BY Sharon Buntain recently joined the firm as president and chief hundreds of others adhering to the all-white packed into Gotham Hall and Dayssi Olarte de Kanavos executive officer for U.S. operations. She will oversee wholesale and on Broadway here as models walked the runway wearing pieces from the new retail operations in the U.S. and Canada. Before joining Links of Astrale collection. The items were officially unveiled in St. Petersburg in April with a gala dinner and fashion show. London, Buntain was North American president of Lalique, the French Stylist L’Wren Scott dressed the models in black and to show off pieces like a one-of-a-kind white gold necklace crystal and jewelry maker. Ellen Eisen was named president of U.S. with more than 15 carats of round brilliant-cut and pavé diamonds and a platinum and diamond brooch with 26 marquise-cut wholesale operations earlier this year. She had been director of sales diamonds. The loudest applause went to the 128.56-carat pavé diamond and white gold halter top — perfect for a hot night. and marketing for Michele Watches.

TOMORROW, June 15 thru Thursday, June 17 10:00am – 5:30pm

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By Ross Tucker both regular and diesel fuel have remained signifi- weeks, it was still 31.2 percent higher than the average cantly higher than year-ago levels. price from the same period a year ago. NEW YORK — While retailers fret over the effects of For the trucking industry, which handles the majori- “Fuel is typically the second-highest expense for higher fuel prices on consumer spending habits, in- ty of shipping responsibilities, the rise in diesel prices the average motor carrier,” said Tavio Headley, a staff dustry analysts and those in the shipping industry be- has a more immediate impact on the bottom line. economist with the American Trucking Associations, a lieve the impact on transportation costs may already According to the Energy Information Administration, lobbying group for the trucking industry. Only labor be showing. an arm of the U.S. Department of Energy that handles expenses, said Headley, cost more. Recently, fuel prices have pulled back from record statistical information, the average on-highway diesel West Coast states have taken the biggest hit, with highs, owing to OPEC’s decision to increase crude oil price for the U.S. was $1.73 a gallon, as of June 7. diesel prices, as of June 7, coming in at $2.06 a gallon, a output two weeks ago. Despite this, average prices for Despite being two cents lower than the previous two 59 percent increase from the previous year. California, which has higher taxes and whose refining requirements ex- ceed those of the federal govern- ment, leads the pricing race in both regular and diesel fuel grades. According to the EIA, av- erage diesel prices in California roup Inc. came in at $2.12 a gallon on June 7, up 60.4 percent over the previ- ous year. In regard to regular gasoline, analysts have estimated that the economy loses $1 billion on an annual basis in consumer expen- ditures for every penny increase at the gas pump. A rise in the price of diesel has a similar im- pact on the trucking industry. “As an industry, we use 30 bil- lion gallons of diesel fuel a year,” said Headley. “So, a one- penny increase annualized for the entire year would cost our industry an additional $300 mil- lion a year.” Since the beginning of the year, diesel prices have risen more than 20 cents. The impact, said Headley, has already begun to show up in the results of many trucking and shipping companies. “Fuel is typ- ically 10 to 20 percent of total op- erating expenses. So far this year, we’ve seen it with some compa- nies as high as 25 percent.” Mark Bienstock, executive vice president of DCD Capital, said he believes manufacturers and im-

2004 CIT Group Inc. CIT, the CIT logo, “We see what you see” and “c it” are service marks or registered of CIT G the CIT logo, “We 2004 CIT Group Inc. CIT, porters will absorb the higher © costs. “With oil prices and the pending interest rate movement, this is a cost that the supply chain is going to have to deal with,” said Bienstock. Higher fuel prices also make being efficient and having goods delivered on time a priority. “Suppliers are now going to see Diesel Fu

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further chargebacks if they’re late because they have ad- then in dollar terms,” said Steidtmann. “Very few concern of theirs.” ditional cost to air things in,” said Bienstock. things selling today are at the same price that they Bienstock said his primary concern is a reduction Harold Dundish, executive vice president and west- were 20 years ago. The thing to remember, too, is that in the flow of traffic to malls and stores as people cut ern regional manager of Capital Factors, agrees that the importance of oil and gasoline has declined over back on unnecessary trips. manufacturers will take the initial hit. “It’s getting more the years.” Dundish sees men’s wear taking the first hit. difficult to pass on prices to a retailer,” said Dundish. Steidtmann believes that there could be a slight “When things like this happen, and disposable in- Still, Dundish contends that if fuel prices remain high, impact on the retail end in terms of shipping costs. come starts to disappear as a result of it going to gaso- consumers will eventually face higher prices in the “Energy costs are very important to the transportation line instead of apparel, men’s wear will hurt first,” stores as well as at the pump. “Ultimately I think the sector in general. There will be some inflationary said Dundish. “Fathers will sit back and make sure consumer is going to wind up bearing the brunt of it.” pressure, but for many retailers, the cost of shipping the wife and the kids are taken care of. He’ll take Richard Hastings, a credit economist at Bernard as a percentage of doing business is still a pretty [care of] himself last.” Sands, believes the level of efficiency in the global ap- small amount.” With high margins on luxury goods and the well- parel industry has improved to such an extent that the As a result, retailers in the moderate and discount heeled continuing to be willing to spend freely, high- impact of fuel prices has been significantly lessened. markets continue to focus their concern on the impact end retailers should continue to see strong sales. “The “In some instances the higher freight costs due to of fuel prices on discretionary spending. affluent consumer is not affected, he’s going to do fuel price inflation has been offset by greater efficiency “Remember, whenever any major economic prob- what he wants, he’s still going to buy the big car and and global collaboration, things that continue to reduce lems arise, apparel is generally one of the areas that still fill it up with gas because he can afford it,” said costs and price,” said Hastings. “It’s very lucky,” he goes to the bottom of people’s concerns of buying im- Dundish. said, referring to the current environment. “It’s not like mediately,” said Bienstock. “It becomes a secondary —With contributions from Vicki M. Young in the Seventies, when industry was very inefficient and a little bit of inflation went a long way.” If anything, said Hastings, rising energy costs pressure manufac- turers to become more efficient and improve production. At GE, our retail financing solutions take more Unfortunately, fuel prices are than your current needs into account, they’re poised to remain high heading designed with your company’s future in mind. into the summer season and, for diesel in particular, will likely remain so. According to Headley, Understanding where your company is diesel prices typically experi- going, and how GE can help you get there is ence a spike in the fall or winter. “That’s when heating oil produc- fundamental to our strategy. We call it being tion also starts,” said Headley. customer focused. Our customers call it “That takes away from diesel be- cause they’re similarly refined better results. products.” For the summer months, said From lending to leasing, credit cards to Headley, anxiety should keep the price of crude oil high. construction services, security systems to “What’s really driving prices Six Sigma, leadership development to lighting would be the fear factor, the pos- GE has the experience and resources to help sibility of supply disruption in the Middle East.” According to you build a bright future. Headley, analysts believe the “fear factor” has added $5 to $10 to the price of a barrel of crude oil. “Until that situation is GE Commercial Finance cleared up, prices will remain at present levels.” Retail Finance Carl Steidtmann, chief econo- mist and director of Deloitte Research, Consumer Business, observed, “I think you’ve seen the peak in oil prices, barring some kind of supply disruption. It is rare that you see oil inventories and prices rise at the same time.” Steidtmann doesn’t anticipate much impact on consumer spending, explaining that, if one adjusts the prices for inflation, they are similar to those of the early Eighties. “Prices essential- ly are the same as it was back uel Jumps Imagine a future so bright, you gotta wear shades.

Jim Hogan · Norwalk, CT · 203-956-4592 Stuart Armstrong · Managing Director Daniel Williams · New York, NY · 212-309-8779 Lori Potter · Charlotte, NC · 704-992-5444 Norwalk, CT · 203-956-4085 Kimberly Morse · Pleasanton, CA · 925-730-6464 Stephen Metivier · Norwalk, CT · 203-956-4596 Matt Christensen · San Francisco, CA · 925-730-6425 Pamela Rashid · Chicago, IL · 312-441-7763 © 2004 GE Corporate Financial Services, Inc. All rights reserved. 12 WWD, MONDAY, JUNE 14, 2004

FINANCING FASHION panel: better retailing

By Vicki M. Young operating partner of merchant bank Tri-Artisan vidual expertise for the benefit of the company and its Partners; Ken Wasik, an investment banker and direc- shareholders,” he said. NEW YORK — Offering trend-right apparel with superi- tor of the consumer products group at Houlihan Lokey Thorner deplored situations where it was obvious that or customer service while understanding — and accept- Howard & Zukin; Walter Loeb, a retail consultant of the directors had not familiarized themselves with company- ing — that a retailer’s core customer base also frequent- firm that bears his name; Deborah Weinswig, a retail related materials sent to them before board meetings. ly shops at Wal-Mart, was some of the advice offered by analyst at Smith Barney, and Adam Rogoff, bankruptcy Loeb said this is starting to change. “I can think of a roundtable of industry experts, held here, at WWD. law partner at Cadwalader, Wickersham & Taft. three examples where the company’s directors meet The panelists also discussed the importance of more the night before for dinner to discuss some of the things independent boards of public companies. The partici- BOARD EVOLUTIONS on the agenda, and more importantly, to establish a pants were: Peter Solomon, chairman of investment As government regulatory agencies and shareholders greater working relationship,” he said. banking firm Peter J. Solomon Co.; Peter Thorner, pressure public companies toward greater transparency The consultant said audit committees now have a and accountability, board members are taking much greater time commitment than before, spending their responsibilities more seriously, while more time each month to ensure compliance of the also spending more time on their duties. In required regulations. He concluded, “The boards of addition, public companies are filling the companies today are no longer a chairman’s club. They ranks of their boards with more independent are much more aggressive in how they handle things.” members. Rogoff said how boards perceive their role is also According to Solomon, “What we’ve seen changing, especially when dealing with restructuring happening at Disney [and the shareholder issues — a process that is overseen by a bankruptcy court. discontent with chairman Michael Eisner, for “I have seen independent directors who, five years example] affects retail as well. You’ll see obli- ago, might have shown up at a board meeting, gotten a gations go up, and a gradual change toward Danish and then a package that they didn’t read until retired generals and professionals, as well as the meeting started. Now you have them really coordi- the ages of the board members increasing.” nating in advance,” he said. Thorner, the former head of the now- The attorney noted that the boards involved in a defunct Bradlees, who is credited with turn- Chapter 11 scenario are becoming far more active. ing around the chain before it was liquidat- “What you’re now seeing is what historically was a two- ed in 2001, said he believes in making infor- hour board meeting now take place over a week’s mation readily available to board members, worth of concentrated time,” Rogoff said. “Documents and noted that he doesn’t view independent are being drafted because everyone on the board wants boards as a threat to management. to be fully informed. In some respects it is litigation in “I believe that board members are part- the making. Boards are looking to do the right thing ners, and if you are resourceful as a chief and build the right record. It’s not a bad consequence, executive officer, you will utilize their indi- but it does take a significant amount of time.” WWD, MONDAY, JUNE 14, 2004 13

MARKET POSITIONS it out. Department stores aren’t even on the same attributable to its ability to maintain in-stock invento- Aside from corporate governance issues, retailers scale. The smart consumers will head into their ry of seasonally appropriate merchandise. I have been are struggling with other factors, such as finding rele- stores, see something and then say that they can get on the inside of four substantial retailers. They all vance in a fiercely competitive and rapidly consolidat- it somewhere else either at a better price or shop- deferred investments in systems and logistics to ing marketplace. Moreover, the evolution of mass and ping experience. That’s the attitude that the depart- improve cash flows and earnings. This is a short-term specialty retailing is increasingly pressuring depart- ment stores are grappling with. Right now the tactic with long-term negative consequences to the ment stores. department stores need a better grasp of that value- supply chain.” According to Solomon, “department stores have quality pricing relationship.” Thorner said Wal-Mart also has an edge against some been in a decline since 1953.” Wal-Mart, to be sure, appears to have a lock on of its competitors with its everyday low-price strategy. Loeb believes retailers will be successful if they that, based on its huge and ongoing investment in Weinswig noted that the negative stigma of shopping focus on their core customers. But they must provide a logistics. at Wal-Mart is gone. It’s in vogue to shop at the store. more meaningful shopping experience coupled with a “I hate to say that Wal-Mart is unstoppable at this “Burt Tansky at Neiman Marcus will tell you that his value proposition that is delivered with top-notch cus- point, but it enjoyed similar benefits to the Japanese core customer is shopping at Wal-Mart,” Weinswig said. tomer service. auto industry following World War II,” Thorner said. “Lee Scott at Wal-Mart will tell you that his core cus- “Department stores have a function in retail in “Both started with clean slates. Wal-Mart began in the tomer is shopping at Neiman’s. The consumer is smart that they are able to promote fashion, provide a head- 1970s and was farsighted enough to invest heavily in and a lot of retailers don’t pick up on that. For example, to-toe wardrobe and give a pleasant one-stop shop- systems and logistics that allowed it to efficiently re- I am very happy going to Wal-Mart and buying a plain ping experience. The problem is that the middle- supply its stores and remain substantially in-stock. In , and then heading over to Neiman’s to buy a . fashion market is totally lost today. Upscale fashion retailing, most of a discounter’s success is directly That is cool these days.” at Lord & Taylor’s and Bloom- ingdale’s are doing well. The lower-priced merchandise is doing well. However, the mid- dle-priced lines that used to serve the core of the consumer are lost, and many stores are trying to make an effort to iden- tify that customer. That is the area where some department stores have not made a play after,” Loeb observed. Weinswig said there are de- partment store retailers who are not zeroing in on the right demo- graphic. She said there are retail- ers “going after the teen market even though the biggest part of the population is the Baby Boomer.” Speed and agility. “This customer is now the 40- year-old of yesterday,” Weinswig explained. “They are still inter- ested in fashion and apparel. Factoring requires speed and agility to keep ahead These are the consumers that the department stores have really of the pack. Capital Factors moves quickly and with moved away from, and they’re the ones who want to enjoy shop- great flexibility to provide the cash you need. Our ping in that channel.” full program of financial solutions keeps your WAL-MART’S IMPACT Another looming problem for business moving with credit and collection, department stores, Loeb pointed out, is the “800-pound Gorilla” lurk- accounts receivable management, asset-based ing in the background: Wal-Mart. “The industry faces a real loans, letters of credit, import/export financing, dilemma,” he said. “We have a giant in the discount industry. and cash management. Wal-Mart has a great influence on the rest of the industry, with its value-price orientation, multiple locations and merchandise assort- ment. But it has not always made an effort to be fashionable. Be- cause it is not a fashion leader, it is really just a place for basics.” Solomon agreed, and said the deepest woes in retail stem from Wal-Mart’s omnipresence. “Imagination is definitely lack- ing these days,” Solomon said. “Money is readily available. Just take a look at the availability of venture capital. So now these re- tailing firms have money, real estate and resources. But they all suffer from one condition. They have no imagination. You know why? They are all intimidated by Wal-Mart.” Wasik said department stores have to contend with a very real pricing challenge, that Wal-Mart created, but retailers have yet to figure out how to compete against the discounter. According to Wasik, “More Good Listeners. Good Lenders. than anything else, what Wal- Mart has done is educate an en- tire consumer class. While a lit- Charlotte Los Angeles Boca Raton New York Dallas tle bit of that is due to in- 704/364-0002 213/891-1320 561/368-5011 212/887-7903 972/713-3901 creased media access making people more aware of pricing, a lot has to do with consumers www.capitalfactors.com having better knowledge of what quality is and how to seek Capital Factors is part of the Union Planters Bank family, with over $30 billion in assets. 14 WWD, MONDAY, JUNE 14, 2004

FINANCING FASHION Weekly Stock Index 52-Week P/E Sales Amt. High Low (000’s) Last Change Retailers 37.58 23.07 Abercrombie & Fitch 16.9 67308 37.31 0.22 29.14 13.51 Aeropostale 27.0 46415 28.79 0.95 WWD Composite Stock Index vs. S&P 500 31.43 18.02 Ann Taylor 16.8 37249 28.63 0.53 24.33 11.93 Bebe 28.6 8262 20.86 0.42 5.97 0.76 Bluefly - 3718 2.37 -0.13 17.95 4.77 Bon-Ton 11.1 3285 14.02 1.17 22.50 17.08 Burlington 17.7 1674 18.96 0.15 35.44 12.50 Cache 16.8 13001 23.55 -0.53 25.50 17.05 Cato 14.7 4217 22.33 0.03 20.16 9.18 Charlotte Russe 27.9 6841 19.25 -0.27 8.70 4.52 Charming Shoppes 16.7 37365 8.39 0.09 47.60 19.39 Chico’s FAS 34.8 45108 44.64 0.82 32.85 16.66 Children’s Place 21.7 14116 23.29 -1.14 42.52 26.17 CVS 18.6 78016 42.52 0.92 27.01 17.58 Deb Shops 23.2 638 22.59 -0.41 23.51 12.87 Dillard’s 43.9 84547 23.23 4.00 23.40 16.91 Dollar General 22.0 80914 20.48 0.43 18.72 12.20 Dress Barn 51.8 2444 17.19 -0.36 44.13 26.51 Family Dollar 21.9 74946 33.85 1.86 55.06 35.17 Federated 12.1 81565 50.00 2.00 25.28 16.71 Gap 19.4 256484 24.60 0.04 14.80 7.05 Goody’s 15.4 9184 11.49 0.26 6.48 1.59 Gottschalks 15.8 557 5.04 0.24 19.58 5.50 Guess 43.5 14095 14.40 0.13 10.00 0.01 Harold’s Stores - 140 2.46 0.02 32.30 16.89 Hot Topic 20.0 49390 20.11 -0.65 37.18 15.57 J.C. Penney 23.5 134645 36.60 0.72 67.65 17.22 Kmart - 176922 65.16 10.30 65.44 39.59 Kohl’s 27.6 102416 47.54 -0.20 21.65 14.77 Limited Brands 14.0 83201 19.40 0.17 36.48 21.76 May Dept. Stores 19.8 110730 28.87 0.55 37.87 20.31 Mothers Work 9.4 1291 23.22 1.06 59.70 35.50 Neiman Marcus 13.6 9561 54.05 1.77 41.79 18.99 Nordstrom 19.8 35848 41.37 0.65 25.78 14.97 Pacific Sunwear 18.9 112369 20.90 0.78 8.60 1.90 Retail Ventures 39.0 9287 8.37 0.87 32.86 20.22 Ross Stores 17.0 78828 26.23 1.26 17.92 8.85 Saks 23.1 60667 15.43 0.38 SOURCE: DATA NETWORKS, STANDARD & POOR’S 56.06 31.86 Sears 3.6 240714 40.31 3.18 17.23 12.02 ShopKo 10.2 5469 13.69 0.18 42.01 22.18 Stage Stores 12.2 10272 39.72 1.86 15.30 5.00 Stein Mart 44.6 10940 14.45 -0.31 8.30 6.25 Syms - 387 8.22 0.08 39.17 27.95 Talbots 19.6 21559 37.65 -0.66 47.40 36.19 Target 21.5 212595 45.75 0.39 26.12 17.55 TJX 18.1 70565 25.40 0.03 57.85 17.13 Urban Outfitters 37.8 33015 57.72 2.69 May Co. Deal Triggers Rally 37.42 28.80 Walgreen’s 28.2 100549 34.62 0.07 61.31 50.50 Wal-Mart 26.9 331443 57.20 0.60 12.99 5.05 Wet Seal - 43841 5.90 -0.03 By Dan Burrows shares advance 1.2 percent for On the wholesaler’s side, 10.15 1.95 Wilsons Leather - 9567 3.34 0.04 the week to close at $45.75 from Corp.’s shares 31.30 19.04 Zale 42.5 11629 27.72 0.09 NEW YORK — The WWD Com- $45.21 after hitting an all-time plunged, falling 5.2 percent to Vendors posite Stock Index advanced a high of $47.40 in midday trad- $14.20 from $14.98, after the 48.20 33.04 Alberto Culver 31.8 11830 47.38 0.86 healthy 1.25 percent last week ing Thursday. company lowered its fiscal 45.94 30.28 Avon 29.6 135460 44.74 0.19 27.41 19.80 Benetton 29.7 435 22.48 0.37 to 111.6 from 110.22, boosted in Not to be outdone, Federated 2005 sales guidance. 24.75 17.75 Cherokee 13.7 698 23.49 0.29 part by a rally in Dillard’s Inc.’s may have lost out in its pursuit However, that paled in com- 45.80 24.00 Coach 36.9 42940 45.70 2.09 stock on speculation that Fed- of Field’s, but its stock perform- parison to the performance of 59.39 46.81 Columbia Sprtswr 17.6 7679 55.00 1.26 34.48 21.44 Del Labs 15.0 289 29.60 0.00 erated Department Stores Inc. ance outshone that of both prin- Novel Denim Holdings Ltd.’s 23.94 12.70 Elizabeth Arden - 41265 20.61 -0.80 may seek to acquire the retailer. cipals by growing 2.6 percent to stock, which plummeted 29.6 47.09 32.60 Estée Lauder 30.5 110554 46.56 1.76 The S&P 500 rose 1.24 per- $50 from $48.75. Investors likely percent to $1.40 from $1.99, after 25.97 14.57 Fossil 16.2 15073 24.61 0.35 cent to 1,136.47 from 1,122.51 in applauded Federated perspi- the company reported deeper 12.00 6.50 G-III 8.5 525 7.77 -1.32 38.40 29.18 IFF 18.2 10778 37.20 0.72 a shortened trading week. The cacity in not overpaying for the losses for its fourth quarter and 33.36 7.00 Inter Parfums 28.4 5089 23.92 -0.92 markets were closed Friday in venerable but underperforming fiscal year and said it was exit- 39.74 27.98 Jones Apparel 15.9 23764 38.74 0.94 honor of former President nameplate. ing the garment business. 44.18 29.26 Kellwood 15.1 10762 44.07 4.04 37.39 18.55 Kenneth Cole 19.6 2492 33.13 0.94 Ronald Reagan. 38.90 32.09 12.9 31089 34.20 0.00 Dillard’s ended the week up 6.90 2.80 Mossimo 14.1 230 3.94 -0.24 16.9 percent to close at $23.23 WWDStock Market Index Biggest Percentage Changes 32.50 19.46 Movado 16.5 1167 30.98 0.16 from $19.88 in the prior week. For Week Ending June 10 78.56 49.60 Nike 21.2 55928 71.25 1.05 Gainers Close Change 2.65 1.39 Novel Denim - 312 1.40 -0.59 The stock hit a 52-week high of 47.50 19.52 Oxford 20.9 6003 36.42 0.17 $23.50 during Thursday’s ses- Dillard’s 23.23 16.90 29.95 18.68 13.3 4954 24.04 0.62 sion after May Department Composite: Retailers: Vendors: Tropical Sprtswr 2.31 12.14 19.95 13.51 Phillips-Van Heusen - 3853 18.70 0.29 Retail Ventures 8.37 11.60 37.05 24.90 Polo 19.0 14044 33.50 0.83 Stores Co. struck a deal with 111.60 109.71 121.21 Kellwood 44.07 10.09 23.41 14.70 Quiksilver 20.0 26775 23.06 1.06 Target Corp. for Marshall Field’s. 42.95 31.50 Reebok 13.7 27384 36.35 0.30 Although May’s shares tick- 46.56 27.76 Regis 19.4 8004 44.78 1.22 1.37 1.22 2.36 Losers Close Change 3.93 2.05 Revlon - 16784 3.21 0.14 ed down fractionally after in- Novel Denim 1.40 -29.61 20.99 15.43 Russell 13.3 5325 16.43 0.35 vestors learned of the acquisi- G-III 7.77 -14.52 4.76 1.51 Tarrant - 596 1.85 -0.06 tion, for the week, the compa- 18.25 8.56 Tommy Hilfiger 9.6 77027 14.20 -0.79 Mossimo 3.94 -5.74 8.59 0.90 Tropical Sprtswr - 6603 2.31 0.25 ny’s stock was up 0.8 percent to Index base of 100 is keyed to Tommy Hilfiger 14.20 -5.27 48.49 33.43 VF Corp. 12.5 16585 47.80 0.68 $28.87 from $28.65. closing prices of Dec. 31, 2002. Bluefly 2.37 -5.16 21.02 12.48 Warnaco - 14369 20.42 0.42 Target, meanwhile, saw its WWD, MONDAY, JUNE 14, 2004 15 POWER RANKINGS Fashion’s Top-Performing Retailers

NET PROFIT OPERATING GROSS SALES EPS RETURN ON RETURN ON RETURN ON POWER Specialty Retailers MARGIN MARGIN MARGIN GROWTH RATE GROWTH RATE ASSETS EQUITY INVESTMENT METRIC TOP 10 SPECIALTY STORES 1. Chico's FAS Inc. 11.54 18.47 59.64 48.41 57.05 27.44 29.32 27.29 34.90 Lead Power Surge 2. Christopher & Banks Corp. 9.83 15.98 41.20 28.82 43.04 25.59 29.86 27.00 27.67 3. Aeropostale Inc. 6.22 10.52 30.95 36.96 57.19 15.34 41.94 17.78 27.11 4. Hot Topic Inc. 8.35 12.87 38.88 40.80 48.32 19.92 21.52 21.08 26.47 By Dan Burrows 5. Abercrombie & Fitch Co. 12.75 20.53 41.97 16.23 16.47 26.87 32.68 31.64 24.89 NEW YORK — Retailing is never easy, but the last five years of 6. Mothers Work Inc. 1.72 6.93 51.46 10.49 44.36 3.53 29.17 4.18 18.98 boom, bust, recovery and consolidation have buffeted compa- 7. Bebe Stores Inc. 9.99 15.44 48.14 17.13 0.37 19.32 20.88 20.03 18.91 nies’ operations and tested managements’ talents perhaps as 8. Pacific Sunwear of California Inc. 6.49 10.43 33.81 26.50 25.71 14.88 17.34 15.90 18.88 never before. 9. American Eagle Outfitters Inc. 7.43 12.00 39.23 20.94 2.02 18.06 21.10 20.23 17.63 Of course, that just makes WWD’s Power Rankings all the more compelling. Broken up into the specialty and broadlines 10. Talbots Inc. 6.73 11.13 39.17 7.01 25.79 12.83 19.02 15.16 17.11 channels, the power rankings represent the average of eight sub- AVERAGE 8.11 13.43 42.45 25.33 32.03 18.38 26.28 20.03 23.26 sidiary five-year averages, selected for their assessment of com- panies’ relative profitability, efficiency, top- and bottom-line TOP 10 BROADLINES RETAILERS growth and management effectiveness. 1. TJX Cos. Inc. 5.20 8.74 24.58 10.89 14.69 16.80 42.31 27.04 18.78 The resulting average, dubbed the “power metric,” is a self- 2. Ross Stores Inc. 5.68 9.37 28.74 12.43 16.03 15.79 30.83 26.52 18.17 weighted figure grading a company’s overall performance 3. Kohl's Corp. 6.23 10.74 33.92 22.80 23.82 10.69 16.48 11.58 17.03 through one of the toughest times in retailing memory. And 4. Sears, Roebuck & Co. 4.04 7.37 35.63 0.58 34.09 4.19 25.31 6.85 14.76 although it may be true that past performance is no guarantee of future results, investors would do well to know where a compa- 5. Wal-Mart Stores Inc. 3.25 5.77 22.37 13.19 15.45 8.76 20.22 11.63 12.58 ny’s been rather than bet on the future blind. 6. Target Corp. 3.57 7.02 32.44 9.45 14.47 6.51 18.09 8.38 12.49 Among the specialty stores, it comes as no surprise that Chico’s 7. Neiman Marcus Group Inc. 3.76 7.08 32.96 5.79 4.13 6.31 11.88 8.33 10.03 ran away with the top spot. The company that doesn’t comp nega- 8. Saks Inc. 1.18 4.11 36.55 0.30 27.67 1.50 3.30 1.80 9.55 tive posted stunning results by every measure. Average gross mar- 9. Nordstrom Inc. 2.65 3.73 34.04 5.15 4.60 4.15 11.26 5.32 8.86 gin for the past five years stands at almost 60 percent in an indus- try where 35 percent is considered pretty good. But not only is 10. Bon-Ton Stores Inc. 1.36 3.43 36.85 6.55 10.50 2.50 5.01 3.21 8.68 Chico’s strong at fashion and inventory management — and thus AVERAGE 3.69 6.74 31.81 8.71 16.55 7.72 18.47 11.07 13.09 lots of full-price selling — it’s also enviably adept at controlling FIGURES IN PERCENT. POWER METRICS REPRESENT THE AVERAGES OF THE OTHER METRICS. METRICS REPRESENT AVERAGES OF LAST FIVE FULL FISCAL YEARS, EXCEPT SALES AND costs, translating a fat 11.54 percent of its sales into profits. EPS GROWTH, WHICH REPRESENT FIVE-YEAR GROWTH RATES. ROA, ROE & ROIC ARE AFTERTAX FIGURES. CALCULATIONS BY WWD. SOURCE: COMPANY REPORTS, EDGARPRO, As well as Chico’s has performed, however, as a retail concept REUTERS RESEARCH. the winner hands down is the mall-based teen category. Fully half of the top 10 — Aeropostale, Hot Topic, Abercrombie & Fitch, PacSun and American Eagle Outfitters — cater to younger con- sumers, a wise proposition given the sales growth and high mar- gins afforded in that segment. In the broadlines category, it’s clear the middle ground is the hardest to hold. Led by off-pricers and discounters at the top and luxury players at the bottom, only Sears and Bon-Ton could crack the top 10 as moderate department store operators. TJX and Ross Stores grabbed the top spots with strength throughout their businesses, but especially by delivering out- standing returns on shareholder equity. And of course the usual suspects Wal-Mart, Target and Kohl’s made the list. But given the tectonic shifts occurring in the broadlines world right now, it bears watching to see how the rankings will hold up going forward. J.C. Penney is a behemoth just emerging from a prolonged turnaround phase, and the obituary for the overall department store channel was clearly written too soon. Kohl’s, after almost 10 years of heated sales growth, has stumbled of late, and luxury retailers are riding the incipient economic recovery to all-time highs. Wal-Mart and Target, standing in the middle of the power rankings pack, are likely rooted there for some time. Above and below them, it’s a grand prix. 16 WWD, MONDAY, JUNE 14, 2004 Makeup, Music With PersoNatalie NEW YORK — PersoNatalie, a new line each. Bonelli said that she and Forman treatment of eating disorders. sentation of the brand’s new target: an of lip glosses, has found a way to marry envisioned a product that had added Future plans include $18 face shimmers established, confident woman in her 30s. makeup with music. value beyond the usual pot of gloss. called You’re My Favorite, which will be “[Elaine’s] life mirrors who we’re talk- Founders Natalie Bonelli, a makeup “It’s a three-dimensional experience,” available in September; and an eye shad- ing to,” said Kevin Kells, vice president artist and singer/songwriter, and Nancy said Bonelli, who has been friends with ow, blush and a fragrance called Lovable of marketing for Almay. “She feels beau- Forman, a former regional merchandise Forman since they met as freshmen in are also in the works. tiful because she’s proud of what she’s manager for Bloomingdale’s, named each college. “It has heart — it means more “By the end of the year, our desire is to become — she has two kids, a career and of the line’s nine colors after a song writ- be a fully functioning makeup line,” said she’s involved in charities.” ten by Bonelli, from “Dreams,” a clear Forman. “But we have to grow slowly.” Also present at the event were peach, to “Wasted — Bryn Kenny Mellencamp’s husband, musician John Time,” a wine color. In Mellencamp, Vanity Fair editor in chief addition, each gloss BEAUTY BEAT Graydon Carter and Revlon’s Stephanie comes packaged with Face of Almay Honored Klein Peponis and Rochelle Udell. the lyrics to the song for which it’s named. NEW YORK — Fashion photographer — B.K. “Af ter spending years in the retail in- Sheila Metzner hosted a cocktail party in dustry, I watched the whole niche cos- honor of Almay spokesmodel Elaine Irwin metics industry expand dramatically,” Mellencamp at her studio in Brooklyn’s Hain Celestial Acquisition said Forman. “But beauty is more than DUMBO neighborhood last week. NEW YORK — Natural and organic prod- marketing, it’s also internal. We wanted Mellencamp, who became the brand’s ucts company Hain Celestial Group Inc. to offer the consumer products that make face in March, will appear in several up- has acquired Jason Natural Products Inc., you feel beautiful from the outside and coming TV and print ads, including com- a natural health and body care brand. that also inspire you from within.” mercials for Clear Complexion and Nearly Details of the deal were not disclosed. Naked makeup, dropping today and July Sold in Nordstrom, Bloomingdale’s, PersoNatalie is an infusion of makeup and music. The acquisition marks Hain Celestial’s Los Angeles’ Kitson and on Sephora.com, 12, respectively, and new print ads for first entry into the body care category; the each gloss retails for $15 and comes in a than just putting something on your face.” Whipped Gloss debuting in the July issues company mainly makes food brands, in- small, mirrored compact with a lip First-year sales predictions for the of magazines. cluding Celestial Seasonings teas and brush. Customers may also purchase a line are $850,000, and Forman and “People who know me don’t really think Terra Chips. Founded in 1959, Jason PersoNatalie CD, along with “You Bonelli have pledged to donate between of me as a big makeup person,” said Mellen- Natural is known for using naturally Shine,” a clear gloss, for $24. While the 3 and 5 percent of that figure to the camp. “But [Almay] is perfect for people who sourced, organic and nutritional ingredi- CDs are currently not sold separately in Renfrew Center, a national nonprofit or- want to incorporate makeup into their life.” ents; sales for the company totaled approx- stores, they are available on the compa- ganization dedicated to advancing the Almay execs think that the veteran imately $20 million in its last fiscal year. ny’s Web site, PersoNatalie.com, for $15 education, prevention, research and model and mother is the perfect repre- — B.K.

acquisitions. There also has been speculation the Carrefour board might oust EUROPE WATCH Bernard and replace him with former Marks Morgan Stanley Files LVMH Appeal & chairman Luc Vandevelde, who PARIS — Morgan Stanley has officially igrate LVMH while favoring rival Gucci, SWISS MISS: Akris, the Swiss maker of now oversees the investments of the Halley family. — Robert Murphy commenced round two in its fight with which has received financial advice from luxury ready-to-wear, plans to christen its LVMH Moët Hennessy Louis Vuitton. On Morgan Stanley. Morgan Stanley denies any third German boutique this fall when it Friday, the investment firm officially filed wrongdoing and stands behind its equity re- SCOUTING FOR TALENT: The British Fashion opens a 4,300-square-foot unit in its appeal of a Jan. 12 commercial court search, though it has suspended its coverage Hamburg at 39 Neuer Wall, often dubbed Council has appointed three fashion ruling here that found it guilty of “gross of LVMH in light of the legal proceedings. the Madison Avenue of that city. Akris, scouts to scour the globe for new talent to misconduct” toward the luxury giant. Although the appeal documents will not which has 11 freestanding stores, also bring to London Fashion Week. “We do Morgan Stanley was ordered to pay at be made public, Friday’s filing puts in mo- operates in Frankfurt and Düsseldorf. already see a lot of international talent least 30 million euros, or $36.3 million at tion a series of submissions and rebuttals Architect Christopher Sattler, who designed studying In London,” said Sarah Mower, a current exchange, for what LVMH said was bound to take the case well into 2005 before Akris’ recent New York flagship, is planning contributing editor to American Vogue and a premeditated and systematic effort to den- any ruling will be delivered. a curving stone staircase and a horsehair Style.com, who has been chosen as one of wall for the Hamburg location, which the scouts. “But I think some young boasts a cast-iron facade. — Miles Socha designers may be intimidated, as the British Fashion Council has always been Obituary CAVALLI’S BOO-BOO: The Hindu customers of thought of as quite closed. Now we’re Harrods in London are demanding the store going to be more proactive,” she said. remove part of Roberto Cavalli’s collection Mower, along with fellow scouts Yeda Yun, Jerome Loeb, 63, May Dept. Stores from their shelves. Customers are outraged the international buyer for Browns Focus, by Cavalli’s depiction of the god Krishna on and Andrew Tucker, a fashion writer and NEW YORK — Jerome T. Loeb, a 37-year innerwear pieces in the collection. “As a lecturer, will look for fresh faces to show at veteran of The May Department Stores Co. result of several calls from customers, the London Fashion Week starting in February and former chairman of the board, died decision has been made to remove the items 2005. The chosen ones would also have last week. He was 63. from sale — and they will no longer be the chance to compete for New “Jerry Loeb was a special person and a available,” said a statement from Harrods, Generation sponsorship from Topshop, remarkable man. He was an outstanding which also apologized to customers who along with other British designers. — N.J. businessman, strategist and leader,” said were offended by the designs. Cavalli, Gene Kahn, May’s chief executive officer. “He was also a great friend, mentor and role meanwhile, sent a letter of explanation to CLOSING TIME: Forget shopping in Germany after 8 p.m. weekdays and on model to so many. During his 37-year career, the Hindu Council of Great Britain. “The he had a profound impact on the growth and fabric produced by Roberto Cavalli was Sundays and holidays. Last Wednesday, the German Federal Constitutional Court results of the May Department Stores. His designed to celebrate Hindu culture and not accomplishments set the bar and serve as a ruled against further liberalization of the denigrate it. [It was] a completely innocent beacon for all of us. Jerry’s imprint and nation’s shopping hours. Stores are to idea on our behalf, and something we very legacy with May will continue on.” much regret.” — Nina Jones remain closed after 8 p.m. Monday- Born in St. Louis on Sept. 13, 1940, Saturday, and the court declared Sundays Loeb’s background prior to entering the re- and holidays are “days of [workers’] rest tail industry was somewhat unconvention- TAKEOVER TALK: Could Carrefour, the Jerome T. Loeb French hypermarket and supermarket and spiritual exaltation, constitutionally al. In 1962 he graduated magna cum laude chain, be ripe for takeover by Wal-Mart? protected.” There is a possible loophole, from Tufts University with a degree in That speculation heightened in France last however. The court noted that at least in mathematics and physics. He then earned a in retail history, and brought Lord & Taylor week after Le Monde reported the founding regard to weekday opening regulations, the master’s degree in pure mathematics from and several other department store opera- Washington University in 1964. Retailers at tions under the May . Two years families of Carrefour are bickering and this courts must examine whether “nationwide the time tended to hold more traditional later, the same team helmed the acquisi- August will not renew a shareholders’ pact regulations remain appropriate.” Most of the states in Germany think not. They have business degrees. tion of Filene’s and Foley’s. calling for them to unite against a hostile After graduation, Loeb joined the com- Loeb was appointed president of the bid. The Halley, Badin, Defforey and urged the federal government to make shopping-hour regulations a local matter. pany’s Famous-Barr department store. By company in June 1993, and promoted to Fournier families among them hold a 30 1972, Loeb served as a divisional vice pres- chairman of the board in 1998. Moreover, most states, according to the percent controlling stake in the French ident, and in 1974 he was named corporate Throughout his career Loeb was active retailer. According to Le Monde, the newspaper the Berliner Zeitung, want vice president of management information in numerous charitable organizations, and Defforey family will spurn the pact because complete deregulation of weekday systems. In the late 1970s and the 1980s, in 1989 established the Loeb Prize with his it is unhappy with Carrefour chief executive shopping hours. At present, it is possible Loeb held a variety of positions at May Co. wife, Carol. The annual prize recognizes Daniel Bernard. An eventual meltdown in to buy groceries and some articles of In 1986, while serving as vice chairman excellent math and science teachers. the shareholders' pact is seen as opening clothing that fall under the imprecise of the company, Loeb, along with then- Since retiring from May in April 2001, the door for a hostile bid by Wal-Mart, heading of “travel necessities” at stores in chairman and ceo David Farrell and then- Loeb had served as an adjunct professor of which has recently stated its ambitions to or near railway stations and at gas stations president Thomas Hays, helped lead the marketing at Washington University’s Olin grow in Europe by opening stores or through after hours. — Melissa Drier acquisition of Associated Dry Goods. School of Business. At the time it was the largest acquisition — Ross Tucker WWD, MONDAY, JUNE 14, 2004 17 Plotting a Path in Uncertain Times

By Barbara Barker José Maria Castellano BARCELONA — “The apparel industry, as we know it, will be dead and gone in five years,” Bob Zane, senior vice president of manufacturing and sourcing at Liz Claiborne Inc., warned industry leaders at the International Apparel Federation’s 20th World Apparel Convention here. The impact of quota-free sourcing on the U.S. market should not be underesti- mated, he said. “Because of quota, we source our goods in more locations than we would like to; we pay outrageous penalties that add zero value, and we delay the manufacturing process as fabric and trim travel to faraway places where quota is either available or affordable. “Soon this nonsense will stop and we will manufacture our goods more direct- ly and more quickly, in factories that will offer more services and more flexibility, all for less money. This change, in due course, will revolutionize the industry,” Zane concluded. On the other hand, Hasan Arat, chief executive officer of Arat Tekstil, based in Istanbul said, “I don’t see China as a global threat. I see it as an opportunity to develop Turkey’s position as the geo- Enric Casi Bob Zane graphical hub of the European market.” Turkey is the third-largest textile ex- In 1995, Mango, with revenues of 48 mil- presence, Castellano said. He pointed out Daniel Harari, ceo of Lectra, a Paris- porter in the world, Arat said, adding, lion euros, or $58.1 million at current ex- the company’s policy of no advertising. based leader in advanced technology “It’s high time the global industry devel- change, began courting foreign markets. Instead, Inditex invests 480 million euros, services, called innovation “an engine of ops strategies with fair and equal rules to Last year’s turnover reached upward of one or about $582 million at current exchange, growth; it’s the heart of our business. meet the challenges and demands of our billion euros, or $1.21 billion. “You have to annually in establishing new locales. The company that innovates today will chosen markets.” build on your abilities,” Casi advised. “The A recent project, Castellano said, is an still be around tomorrow. Technology is The two executives were among 34 in- choice of how to globalize [your product] offshore production center in Morocco not innovation. It is a tool [toward dustry leaders and officials from the depends on what you do best.” consisting of 61 leased workshops, main- achieving it]. Innovation means invent- U.S., Europe, China, Middle East, Africa The world’s largest player, VF Corp., ly in Tangier. Inditex is sensitive to its so- ing the future, rather than just reacting and South America who spoke at the con- follows a five-step strategy to strengthen cial responsibilities, he added, noting to it. It’s about turning threats into op- vention, held May 31 to June 1 at the its brand relationships with the consumer, that benefits, including childcare and portunities. If you don’t review your Palau de Congressos here. The U.K.- said Mackey McDonald, chairman and ceo schooling, are provided to 1,300 employ- business model now, you’re in trouble,” based IAF is made up of 150,000 apparel- of the Greensboro, N.C.-based firm. VF ees and their families. he concluded. related companies worldwide. brands include Earl Jean, Wrangler and “The building of a brand is the linch- Harari said the apparel industry’s main Key topics at the convention dealt Lee jeans, Vanity Fair intimate apparel, pin of a healthy future, but for committed challenges are cutting costs, reducing time with the complexities and uncertainties Nautica, The North Face, Jansport out- players only and there are less and less to market, globalization and the develop- of a new trade game resulting from next door gear and Vans sport shoes. of them,” said moderator José Luis ment of a consistent brand and image. year’s phaseout of quotas on apparel and In summary, “a smart executive textiles by member nations of the World should be planning for the reality of Trade Organization. An IAF official said Fashion alone no longer creates the level of China gobbling up additional market 500 professionals from 30 countries at- “ share,” said IFA president Pere Prat. He tended the convention. commercial sales it once did. predicted a fourfold jump in China’s ex- Panelists ticked off a series of problems ” — Bill Ghitis, Invista port capacity by 2020. “Cheaper prices facing today’s industry, such as terrorism are not the answer. Further investment and increased geopolitical tensions; a According to McDonald, VF’s strategy Nueno, professor of marketing manage- in domestic rather than foreign industry fragile financial system; raw material is to adopt a personal, consumer-centric ment at IESE, a local business school, is,” he maintained. drain; lower-priced competition, and more approach that goes far beyond available and a member of the American “The only solution to the Asian threat specifically, the inability to find solutions data; bring new and innovative solutions Marketing Association. “Nobody is im- is an integrated Mediterranean offensive to any of the above in recent years. to the consumer; forge retail partner- mune to the virus of competition.” based on an interdependent industry and “Technology and communication have ships; create a demand with a product In other words, “be yourself and stop a recomposition of distribution chan- shrunk the world and intensified competi- consumers don’t have, and nurture talent copying rivals. The key to the future of nels,” added Salah Eddine Mezquar, tion. It’s a new game plan,” said Enric that can deliver the emotional and func- the apparel industry is innovation,” said president of AMITH (the Moroccan Casi, managing director of Mango, Spain’s tional benefits of products and align the Bill Ghitis, president, apparel, of Invista. Association of Textile and Apparel second-largest apparel exporter after right people with the right opportunities. “As an industry, we have failed to stimu- Industries). “Europe’s textile industry Inditex-owned Zara. With 720 stores in 72 José Maria Castellano, president and late our relationship with the consumer. has to unite in order to keep our cus- countries, Mango plans an inaugural roll- ceo of Inditex, the La Coruña, Spain- “Fashion alone no longer creates the tomers within our geographical sphere.” out in the U.S. early next year. As yet, no based parent company of fast-fashion level of commercial sales it once did,” Moderator Nueno had the last word — definite contracts have been signed for chain Zara, said the group’s retail roster Ghitis said. “Consumers may like cheap- and it was a warning. “Get ready for verti- store sites, but New York and Miami are will climb to a staggering 2,200 stores in er prices, but they are not necessarily ex- cal integration of Chinese and Indian potential markets, he said. 50 countries by year’s end, “and they are cited by them. The industry must exploit companies in European countries,” he How has Mango done it? “A well-de- all profitable,” he claimed. the high-tech potential of advanced tex- said. “It will happen faster than you think. fined product, a well-defined brand and The phenomenon of Zara, which ac- tile science in new forms of apparel cre- If Eastern producers have the production, a well-defined sales target with our own counts for 70 percent of total sales, is due ativity that combine fashion and func- they’ll want the distribution, too.” technology, engineers and analysts, and to the speed of product deliveries; excel- tion. It must also streamline the supply IAF’s 21st World Apparel Convention the human factor, a flexible — and open lent locations with consumer-friendly inte- chain to improve responsiveness to con- will be held Oct. 20-23, 2005, in Cancún, — workforce,” Casi explained. riors and a well-established international sumer demand.” Mexico.

Madison Avenue and 54th Street. Traub said that his consulting VESTED INTERESTS: At the Sotheby’s estate sale for Katharine business is growing and “I need additional space.” He said he Hepburn Friday morning, Burberry picked up two light brown Fashion Scoops was seeking offices in the same neighborhood as Financo, wool vests, which were said to be personal favorites of the late adding, “It’s not that we are splitting apart.” actress. Estimated bids for both items were between $400 and GROWTH SPURT: Marvin Traub is hunting for office space for his Financo, considered a boutique firm in the world of $600, but one fetched $9,000 and the other got $2,100. own namesake consulting firm, but, contrary to rumor, he’s not investment banking, has grown in size and sophistication in the Burberry plans to house the vests in its archives at its splitting from Gilbert W. Harrison and the Financo investment past three years, forming financial and consulting services to help Haymarket building in London. banking firm. Traub, according to both executives, will continue companies improve performance, restructure and raise capital. as a senior adviser to Financo. TOMMY’S TEE TIME: Tommy Hilfiger has rounded up U.S. ski “We don’t have room in our office,” said Harrison. “Marvin HEADING EAST: Maria Luisa, the designer boutiques in Paris run team members Hannah Hardaway and Bode Miller, former New is getting additional space. He’s remaining a senior adviser to by Maria Luisa Poumaillou, is heading abroad. Poumaillou said York Giants Otis Anderson and Howard Cross, Melissa Joan Hart Financo.” While Traub has certain deals he works on, Financo she is in final negotiations with Hong Kong textile group Fenix, and Kwame Jackson, among others, to compete in his celebrity has others. “We’re still very friendly,” Harrison pointed out. which manufactures Anteprima, to open a licensed Maria Luisa golf tournament Monday in Alpine, N.J. Afterward, Saturday Aside from advising Financo, Traub, the former chairman of unit in Hong Kong. She said it could bow as soon as this fall Night Live’s Tina Fey will host a dinner where Teri Garr will warm Bloomingdale’s, also operates his marketing and consulting and would focus on high-end luxury brands, such as Rochas up the crowd as keynote speaker. The event benefits the Nancy firm, Marvin Traub Associates, out of Financo’s headquarters on and Revillon. Davis Foundation for Multiple Sclerosis. 18 WWD, MONDAY, JUNE 14, 2004

Joan Rivers Worldwide PRODUCTION MANAGER Established 20-yr old importer seeking Tommy Hilfiger Product Development an experienced individual (at least 10 yrs) to head the production area. MERCHANDISE MANAGER Manager Dealing with overseas, follow-through PATTERN/SAMPLES We are seeking a creative, organized on all details from product approval and detail-oriented individual to join through shipments. Person must be Reliable. High quality. Low cost. Fast Leading handbag company seeks a highly motivated, Design Team Leader numbers oriented individual to join our growing team. our fashion jewelry team. The candi- organized with systems, computer liter- Foremost Fashion Luggage & Accessory work. Small/ Lrg production 212-629-4808 date will have a design/product devel- ate and have excellent communica- Co. seeks creative leader to manage team Responsibilities include seasonal line planning, inventory opment background in fashion jewelry tion, coordination and multi-tasking of 6+ Designers; coordinate the disci- PATTERN / SAMPLES management, product placements and gross margin adher- and should have a basic understand- skills. Sourcing experience is a plus. plines in each creative area with the team Superior quality for an Affordable price. ence. Liaison to design, sales and production teams. BA/BS ing of the white metal process. Report- Possible overseas travel once or twice and the Asian factories. Northern NJ 212-302-8095 ing to the Director of Design, this per- a year. Reports directly to principals. location. Fax/E-mail resume/salary to: required with strong analytical and communication skills. son must have excellent communica- Send resume & cover letter to : 973-812-3196 / [email protected] tion skills and will correspond with [email protected] PATTERNS, SAMPLES, Fax resumes: 212-852-4868 domestic and overseas manufacturers on a daily basis. The ability to priori- PRODUCTIONS tize and manage many projects simul- Production Manager All lines,Any styles. Fine Fast Service. APPAREL STAFFING, LTD. Designer $90-100K. Current exp. in jr. full Kidswear Co. seeks exp’d Mgr for all fashion sweaters required. Private label or taneously in a fast paced environment Call Sherry 212-719-0622. Customer Svc Rep-Mjr Aprl Co. NJ Loc is a key requirement. Please e-mail aspects of domestic mfg. Position CAD Oper-Boys+young men mfr. xlnt oppty. barnded OK. 7th Avenue and 38th St. requires purchasing skills, technical & Call 973-564-9236 Jaral Fashion Agcy resume and salary history to: PATTERNS, SAMPLES, Dsgnr-Daywear exp. mjr co. - Great Co. [email protected] spec knowl, and strong ability to manage Dsgnr-Toddler thru size 7 boys-immed hire Designer Assist to $50K. Min 1 yr. exp quality at factories. Some import Arteffects ! PRODUCTIONS Graphic Dsgnr-Photo+Illust. Accessory Co. in cut & sewn knit requierd. Jr. line Merchandiser $100-120K. Current exp. in exp a +. Fax resume w/sal reqs: 212-751-1113 FABULOUS FOOTWEAR Samples and patterns full servcie shop Prod Mgr-Wm’s knit+woven tops-global sourcing for large growing co. 1411 Broadway. women’s knits & sweaters required. Prod- 18 year old contemporary Women’s & Jr. to the trade. Fine fast work. Prod Asstnt - Imports - Activewear MFR Call 973-564-9236 Jaral Fashion Agcy uct devel, supervise designers and creative Product Manager Footwear Co. seeks Accessory Reps with 212-869-2699. Prod Asstnt - Sportswear - L.I. location trends. From inception to completion.Call Handbag co. seeks mgr. to oversee all est’d. clientele in the following areas: Spec Tech-Activewear-L.I. location 973-564-9236 Jaral Fashion Agcy phases of overseas production. Must •Northern California •Southern California Dir. of techn dsgn-Superv 8-9 tech dsgnrs DESIGNER PTTNS/SMPLS/PROD Branded ladies handbag import is in Merchandiser Immed have minimum 5 yrs. exp. dealing with •Texas Metro •Southeast •Northeast High qlty, reasonable price. Any de- Techn Dsgnr -sweaters-full fash-bttr price Italy. Will communicate daily with •Midwest. Other [email protected] need of a trend savvy designer. Should $150,000 sign & fabric. Fast work. 212-714-2186 be a self-motivated and a creative Merch/Design bkrd, CW factories, preparing p.o.’s and follow New price point line 1 year old and explod- or Fax Resume to (212) 302-1161 up. Must be computer literate, have ing with rapid growth. Contact Lou at: individual with skills in PhotoShop & [email protected] Illustrator. strong communication and negotiation Tel: 404-369-1286 / Fax: 770-888-4442 ARTIST $45 to 50K skills, extensive sourcing & import + E-mail: [email protected] Fax resume & salary requirments to Established children’s company, spe- 212-273-9202 MERCHANDISING custom regulations experience. Exp. cializing in layette/infants, seeks expe- in leather goods, man-made materials rienced artist to work on appliques, EXECUTIVES and technical construction knowledge embroidery & print design. Excellent DESIGNER - Handbags Pearl Izumi, a leader in performance amust.Allresumes will be kept FASHION RESUMES SINCE 1970 Popular priced large Handbag Importer Lifetime Updating/Phone Interviews Photoshop/Illustrator req’d. Must have apparel is seeking a talented, senior confidential. Please send resumes to: Mac exp. working on OS09 or OS10. seeks creative and motivated Designer. level creative merchandiser to develop Rush Service Available Must be a team player, well organized and Box#M 1058 PROFESSIONAL RESUMES, INC. 2+ years exp. Career opportunity! and execute merchandising plans for c/o Fairchild Publications Call Cindi at 212-947-3399 x16 willing to travel overseas. Exp. is must! multiple product lines. The ideal can- (212)697-1282/(800)221-4425 Please fax resume to (212) 629-3123 7 West 34th Street, 4th Fl www.resumesforfashion.com Fax: 201-894-1186 or didates will have 8+ years of athletic/ New York, NY 10001 Email: [email protected] sports industry experience with appli- KARLYN FASHION RECRUITERS Designer Immed cable product lines. Comprehensive Infants compensation/benefits. PUBLIC RELATIONS + Rib Lycra ASSISTANT DESIGNER / $75,000 [email protected] ASSOCIATE Fleece + Velour GRAPHIC ARTIST [email protected] Fax: (303) 466-4237 Leading US menswear manufacturer Drake Fabrics 620 Compton St. Broomfield, CO 80020 seeks public relations professional 718-389-8902 Major apparel company seeks individual Visit: www.PEARLIZUMI.com with design and strong CAD skills. DESIGNER with 1-2 years experience for NY-based Responsibilities include all aspects of office. Must be highly organized, moti- Seeking creative contemporary Ladies’ Pattern Grader $65-80K. Current exp. vated self-starter with excellent oral line development- sketches, presenta- Wear Designer. Tech knowledge req’d. in bras. Lectra or Gerber computer tion boards, specs. Individual must be and written communications skills. Full/Part Time. Fax resume: 212-967-0585 req’d. Midtown large co. Excellent ben- Position requires extensive multi- experienced with t-shirt graphics efits. call 973-564-9236 Jaral Agcy and embellishments. Knowledge of tasking and an outgoing personality. Better / Contemporary Must be computer literate. Salary based Photoshop and Illustrator is a must. Designers Immed sportswear and dress co. Fax resume to 212-239-2766. Patternmakers/Sample Cutters on experience. E-mail resumes to: Cash For Retail Stock & Closeouts. Childs & Jrs [email protected] No Lot Too Big or Too Small. has the following positions $40 to $60K Established evening wear couture co. seeks experienced patternmakers and Call CLOTHES-OUT: available: Assistants [email protected] (937) 898-2975 cutters. One of a kind dresses. QUALITY CONTROL Fast-paced accessory company is look- Please call: 212-944-7144 Est’d Dress/Sprtswr Co. seeks Q.C. JUNIOR DESIGNER ing for 2 individuals: Designers Immed person w/ min. 5 years exp in apparel Current exp. in jr. sportswear Clerical Assistant Mens $100K Patternmaker to $70K. Current exp. in industry. Must have knowledge of $70K bras or swimwear. Secaucus New stitching and garment construction. collection department store Organized person to follow up on ship- Sleep $Open Jersey location. Growing company. ments. Will write up sales orders, speak Position located in NYC. Fax resume level required. Min 4 yrs exp, Asst Spots $45K Call 973-564-9236 Jaral Fashion Agcy. w/salary requirements to: 617-521-8708 sketching skills & designing with buyers, file, etc. NY position. [email protected] a complete collection, Ticketing Assistant Production Assistant Samplehand conduct fittings, and full Detailed person to print price tickets, Leading apparel mfg. co. is seeking a Handbag company seeks very exp’d send tickets overseas to vendors, order Designer / Sweaters production assistant that is good with person to create first samples. Must be knowledge of domestic and labels and hangers. Must have at least Division of exciting company. Opportu- details, has good communication skills able to make complete product from European fabric market. 3 years experience. NJ position. nity to show your creative contempo- and works well in a busy environment. scratch in all types of leathers and fab- rary sweater talent. Exp’d in sketching, Please fax all resumes to: 201-840-9689 Requirements are: Enter bill of materials rics. Will interface with design dept. ASSOCIATE DESIGNER cads, specs, and technical skills. and cutting tickets, order accessories; Fax resume w/ salary requirements to: Call Ronnie-212-398-4636 Ext 13 create and maintain value statements, 718-482-7468 Experienced in designing Assistant TECH DESIGNER and communicate with plant personnel. sportswear collection. Dress Entry level position for detail oriented, DESIGN/Sales AS400, Excel, MS Word. SHIPPING ALLOCATOR and social separates exp a organized and experienced asst. tech Fax resume w/salary requirement Jr. sportswear company seeks highly designer, with strong communication Leading evening handbag importer is to HR: 212-213-4925 motivated & experience individual. plus. Must have contempo- skills. Must be able to follow through seeking an assertive candidate with a Must be able to track, receive and rary taste level and have full from development to production. positive attitude! Must have fashion allocate import merchandise. 3 years Pattern making knowledge is a plus. sense, ability to work independently; min exp. Fax resume to 212-764-0352 knowledge of European Please fax resume 212-730-2674 computer literate and be detail orient- PRODUCTION ASSISTANT fabric market and well Attn: Evelyn ed. Job responsibilities include: all Major apparel company seeks three Tech Designer $65-75K. Current exp. in wo- rounded in sourcing. phases of product development, set up/ production assistants with 1-2 years ven bottoms & knit tops. Tech packages to Asst. to Warehouse Mgr. attend trade shows, small store sales. experience. Responsibilities include Far East. Flat skeches. Jr. Line. Mdtwn co. tracking of all pre production approval LONG ISLAND LOCATION Travel mandatory. Looking for an ap- Call 973-564-9236 Jaral Fashion Agcy TECHNICAL DESIGNER plicant ready to commit for a growth submits, processing of all price tickets, Experience in wovens a Seeking a strong, organized, and detail opportunity with a well established and ordering/tracking of accessories & must. Must have full knowl- oriented individual familiar with all team. Salary is commensurate with labels. Individual should be detail ori- Tech Designer Immed major retailers and with strong computer exp. Reply to: [email protected] or ented & have excellent computer skills. Great Firms edge of garment construc- skills. Allocations & some EDI experi- by fax to: 212-629-6418. Fax resume 212-239-2766 $40 to $60K tion, pattern- making, and ence helpful. If you are a team player [email protected] grading. Excellent computer who is highly motivated, and thrive in an upbeat, fast paced environment, then Production Coord $40-50K. Current exp. in jr. Tech Designer..$Open...DOE skills and technical drawing. Fax or E-mail your resume to: General Manager or kids denim bottoms req’d. Knowledge of 516-501-0416 / [email protected] Major M/T importer of knits/sweaters has Prestigious and innovative Manhattan construction of woven garments. Track and immed. openings for Tech Designers. Fax resume to Lynn at Skincare Facility seeks a sophisticated schedule import production from inception to Must have 3-5 years of knit exp. Cut & 212-302-2399 Boys Designer/ Artist and outgoing Manager w/great commu- completion. Call 973-564-9236 Jaral Agcy sew knit tops. Must have good fashion Major childrenswear company seeks nication skills and high-end client service sense & flair. CAD is a major plus. Able experienced boys designer to work in a skills. 3-5 years in management a must; to do sketching. Other position avail for Showroom / Office / Retail team environment. Responsibilities compensation appropriate to experience. Sales, Design, Production, etc. We find you space-best deal-no fee include designing boys line, creating art- Strong benefits package w/opportunity PRODUCTION Sublet 525 7th/ready for growth. Schedule requires 2 Saturdays Asst Tech Designer....$45-$50K work, and interacting with sample For top childrenswear co. Evaluate Garment Center Real Estate room. Must be proficient with MAC and amonth. A growing business; a friendly COORDINATOR Call Paul 212 947-5500 X 100 and competent team and a beautiful Ladies Accessories Co. seeks Prod. first samples through production. have strong Photoshop/Illustrator skills. Spec, grading and fitting & sewing Fax resume 212-239-2766 work environment make this a unique Coordinator with good communication opportunity for a strong committed and computer skills. No travel knowledge. Exp. with Wal-Mart and CAD Artist to $70K. Current exp. in leader. Please contact Joanne at: required. Fax at 212-643-0684 Target. Childrenswear background Showrooms & Lofts primavision 5.2 Photoshop/Illustrator. Tel: 212-702-7110 / Fax: 212-319-4963 nec. 2-5+ yrs. Exp BWAY 7TH AVE SIDE STREETS Strong in Full Fashion sweaters, jackards, E-mail: [email protected] Assistant Designer…..$35K-$45K Great ’New’ Office Space Avail prints, stripes, plaids, embroideries etc. Production Coord For successful active/outerwear co. ADAMS & CO. 212-679-5500 Missy JR & girls. Call 973-564-9236 Agcy Wanted to handle all aspects of prodn Must have 2-4 yrs. exp., Photoshop 6 GRAPHIC ARTIST overseas. Req intense attn to detail, and Illustrator 9 or 10. Excel a plus. Fast paced Juniors Room Décor ability to work under pressure & Degree req. Must have Children’s Apparel Mgr. Company seeking a highly skilled strong follow-up skills. Min 3+ yrs exp in activewear or sportswear and in SPEND LESS, KEEP MORE Monmouth County NJ Location self-starter Graphic Artist. Looking 1,500-10,000 sq ft Shwrm/Office/Design exp, Walmart exp a plus. children’s or menswear. Know design, 20 hr. work week - 4 days/5hrs. per day for a creative individual who can bring Fax resume Prodn 212-683-4038 detailing and art to be sent out to sam- All classy space. Call Allan Gallaway Positions Available: ACCOUNT/ fresh concepts to this new division and Bernstein R.E. 212-594-1414 Ext 251 pling. Production status overseas. PRODUCT/PRODUCTION MANAGEMENT can take direction from a Creative Approve strikeoffs and prints under Growth Potential for the right person! Director who will oversee your work. head designer. Please send resume in confidence with Graphic Artist needs to be experienced Production Immed salary history and expectations to: at Illustrator 10 and Photoshop 7 and $100,000 Both are great companies with excellent Fax: (732) 706-5046 familiar with spec sheets, no excep- Dynamic Growth Company benefits. Contact Ms. Hardy at: tions for this position. Past experience [email protected] 212-878-2000 fax: 212-949-3928 or email: [email protected] Data Entry $25K. Min 1 yr. exp re- in room décor preferred. quired. AS400. Excel. 1411 Broadway. Please fax resume 212-736-2649 Tech Designer to $70K. Current exp. in jr Large Growing co. Fax:973-379-1275 Production Immed denim bottoms. Patternmaking knowl- Jaral Fashion Agcy $40 to $60K edge. Exp in Illustrator + Excel. 1407 Graphic Artist Great Firms Broadway. Call 973-564-9236 Jaral Agcy Showroom Sublet-Brand New Women’s Sleepwear Co. seeks a Graphic [email protected] 171 Madison 3800 FT Wood Floors Designer $80-100K. Current exp. in Artist to create original prints & embroid- Tech Designer to $70K. Current exp. in wom- Prime Manhattan Jon 212-268-8043 private label cut & sewn knits + eries. Photoshop skills req’d. Must be Search-www.manhattanoffices.com sweaters. Fashion vision of Emma en’s or men’s outerwear required. Send tech fast paced, motivated, and organized. pakages to far east. Computerized. 7th ave at James, Cold Water Creek, Christopher Please Fax resume to: 212-213-9345 PRODUCTION Banks etc. Call 973-564-9236 Agcy 38th St. Call 973-564-9236 Jaral Fashion Agcy SoHo Loft Showroom Share A/P Bookkeeper LILO NYC Beautiful sunny loft showroom on Computer experience is essential. Fast Designer $90-100K. Current exp. in JR/ Graphic Designer to $75K. Current exp. in Rapidly growing lingerie upstart seeks Tech Designer to $75K. Current exp, in Broadway is looking to sub-lease half paced environment. Detail oriented Contemp full fashion sweaters required. mens or boys t-, strong in urban skat- person to oversee all phases of produc- full fashion sweaters. Embellishments, of its showing space of 1800 Sq Ft. Company benefits. Private label or barnded OK. 7th Avenue er look req’d. F/T permanent position exp. tion from start to finish. P/T possible. beads, embroideries. Tech sketching + Please call Olga at: (917) 653-9375. Fax resume ATT: Estelle 212-869-1938 and 38th St. Call 973-564-9236 Jaral Agcy a must. Call 973-564-9236 Jaral Agcy E-mail resume to: [email protected] specs. Call 973-564-9236 Jaral Agcy WWD, MONDAY, JUNE 14, 2004 19

Sales- Mens $130K+- Technical Designer Dress and Casual bottoms. Moderate. Childrenswear company seeks experi- Joy *Just Mgmt* 800-544-5878 enced Technical Designer with kids [email protected] background. Must have knowledge of flat sketching, grading, and garment construction. Must be detail oriented Salesperson and have good communication skills. For leading intimate apparel company. Good salary and benefits. NY based, some travel required. Entry Fax resume to 212-239-2766. level. Opportunity for growth. Individ- ual will be responsible for sales of ex- citing Junior brand. Fax resume and Technical Designer salary req to 212-684-3254 Large volume mass market childrens importer seeks individual with 5+ yrs experience with infant/toddler/4-6x spec development, fittings, pattern correcting, comm. w/overseas factory and mass merchant retailers. Knits , wovens and sweaters. Computer experience a must. Fax resume to Eric at 212-658-9149 or e-mail to [email protected] Technical Designer Part Time Fragments, the premier Jewelry Large apparel company is looking for a technical designer with young mens / Store, has several exciting positions boys experience. Individual should based in New York. have knowledge of flat sketching, grading and garment construction. RETAIL OPERATIONS MANAGER 3 days a week. Seeking a dynamic Sales Leader. Fax resume 212-239-2766 Must be a polished professional... •Strong communication skills Technical Designer •Excellent staff management & Women’s Sleepwear Co. seeks detail oriented, motivated Tech Designer with organizational abilities minimum 3 years experience. Knowledge •Strong computer skills of garment construction and grading 3-5years of Jewelry Retail Expe- req’d. Fax resume to: 212-213-9345 rience is a must! Textile Computer Artist RETAIL SALES ASSOCIATE F/T Salary & Benefits. Photoshop 2+ Seeking a dynamic Sales Associate. years experience preferred. Fax resume 212-947-4501 Must be a polished professional... •Strong communication skills VIVIENNE TAM Designs •Fine jewelry background Technical Designer •Developed clientele book Min 3 yrs exp w/strong comm. & good 3 years of Jewelry Retail Experi- knowledge of garment construction. ence is a must! Work w/ design team/patternmaker & factory, from 1st sample to final prod, We offer excellent company benefits. monitoring deadline, specs, fitting, Please Fax or E-mail resume to: flat sketching Chinese +. Sample Room Coordinator 212-966-1238 Min 2 yrs exp w/strong comm skills & [email protected] daily follow-up w/orient, knowledge of fabric sample development, incl print +embr. Treatment, sourcing materi- als. Speak Chinese a +. Cecile & Jeanne Fax Resume: 212-398-9695 SALES ASSOCIATES A European leader in fashion jewelry, is seeking exceptional, highly motivated Sales Associates for Full or Part Time floor positions at its exclusive Manhattan boutiques. Must have a minimum of three years sales experience in fashion Key Account Jean Sales retail, high-end preferred and have excellent customer communication skills. Please fax resume to: We are looking for an experienced seller with volume (212) 595-5097 contacts in PRIVATE LABEL BOTTOMS business. JCP, Sears, Email: [email protected] Wal-Mart, Kmart, Kohl’s, etc. account base. This is an exciting Store Manager opportunity to join a successful and growing company. LA PERLA Please Fax or E-mail resumes to Attn. SB at: Seeks Store Manager for its Boutique in Los Angeles. Strong retail & man- 212-719-2653 [email protected] agement skills required. Fax resume to Sarah at 212-459-3413.

Tommy Hilfiger Handbags ACCOUNT EXECUTIVE Tommy Hilfiger Handbags and Small Leather Goods, Inc., seeks a talented Sales Professional to join our sales team. Candidate must have strong account relationships, be result Child/Jr. Lines Wanted oriented and energetic. Effective communication, organizational Est’d Rep Organization seeking one add’l est’d mfr. for SPR ’05. Specialty & Major and analytical skills required. Three years minimum experience. accts. serviced in Dallas & Atlanta Territories. Call: (214) 634-9415 Please fax resume to: (212) 852-4868

Judith Ripka Companies RETAIL SALES Seeking the Best in Class!!! High-end retail sales positions for a Unique opportunity to join a team of Sales men’s clothing store in Manhattan. Pros at a flagship Madison Ave., Short Hills, Must have a passion for selling. The NJ, East Hills, LI, locations. 3+ years of right candidate does not need direct luxury sales exp. req’d. with polished retail experience. An understanding of presentation/exceptional communication the high-end market or luxury brand skills and proven track record. Strong experience is a plus. PT/ Full Time. client following a must. Excellent benefits Fax resumes to 212-327-1829 package & high income earning potential available. Cosmetic or fashion exp. is a Sales(2) $140-$160K Handsome Commission Account Exec High $$ open. Current exp. +++++ Please send resumes: (1) Infant &Toddler (2) Boys/Mens Mass Merch N.Y.C. based Multi-National Bedding in women’s outerwear with a follwing Importer seeks reps to sell exciting and Attn: Theresa @ Fax: (212) 244-4560 Janet *Just Mgmt* 800-544-5878 req’d. Lg. expanding co. with several divi- [email protected] beautiful quilts and bed , from sions. Growth oppt’y Call 973-564-9236 Agcy India & China, to Dept. Stores & Catalogs. SALES EXECUTIVE Please Fax or E-mail resumes to: EXECUTIVE SALES PRIVATE LABEL SALES 212-594-7984 / [email protected] Leading designer and small leather Contemporary high-end social & evening ASSISTANT goods company seeks an experienced wear company seeks sales professionals Applicants must be proficient with Sales Executive. Ideal candidate will w/provenexp. Must have following with Wal-Mart RL & Target POL systems have an established clientele with high-end specialty and department and MS Office. Strong oral & written department, specialty and chain stores stores. Great growth potential! communication skills. Team player. and a minimum of three years experi- Fax resume to: 212-354-0999 Fax Resume to 212-643-0684 ence in the wholesale belt / small leather goods industry. We offer a SALES - Handbags Growing Cosmetic Co. competitive base salary plus commis- Established importer of popular priced Seeking Aggressive Sales Pro to sion and a comprehensive benefits handbags seeking experienced Join Our Team! package. Please email resume along salesperson. Must be highly motivat- Ideal candidate must have minimum with salary requirements to: ed, strong organizational and detail of 2 years experience in the cosmetic/ [email protected] skills, active accounts available. fashion industry. We’re looking for some- Please fax resume to (212) 629-3123 one who is motivated, possesses excellent communication skills, and is willing to Rachel Ashwell Shabby Chic SALES travel. Large growth opportunity working SALES POSITION Major importer of branded handbags with major accounts. Salary plus Com- A high end Home Furnishing Co. is in need of sales person with 3 years mission, along with benefits. Please Fax seeking a positive, energetic, dynamic experience to service major retailers. or E-mail all resumes to Monica at: sales driven individual to join our team Retail planning a plus. 212-564-1097 at our SoHo location. Email resume to: Fax resume and salary requirements [email protected] [email protected] to: 212-273-9202 20 WWD, MONDAY, JUNE 14, 2004 Obituary Egon von Furstenberg, Prince of Fashion,57

By Eric Wilson tion and then on his own, with offices in the Empire State Building that he NEW YORK — On the surface, Egon von opened in 1972. He described his col- Furstenberg was Prince Charming per- lection as “a look at a price,” arguing in sonified, the dashing, blond hero who favor of fashion for the volume market. turned a young Diane Halfin into his Oddly, despite their fortune, the von princess and gave her a fashion empire Furstenbergs were frugal, discussing as a kingdom. But he didn’t exactly play their frequent travel to Europe on youth by the rules of the standard fairy tale. fares, taking the subway to work and Von Furstenberg, who died on Friday Egon saying in Fairchild Publications’ in a hospital in Rome at age 57, was the Men’s Wear magazine, “I often walk 10 charismatic and controversial Austro- blocks to save a fare. But, on the other German prince with the breeding of a hand, I’ll spend $1,000 on something I gentleman, if not the moral code. He was truly want without hesitation.” characteristic of a new generation of VonFurstenberg remained a fixture New York society, who commuted with in New York throughout the Seventies, designers and gadabouts from Studio 54 at Le Jardin, the Sewer and later at to Fire Island. Von Furstenberg was an Studio 54. He described in W the scene investment banker, a fashion designer on Fire Island with Calvin, , Roy and a family man — remaining close to Cohn and David Geffen as “the craziest Diane von Furstenberg and their two of them all. Studio was like a school of children, Alexandre and Tatiana, even Southern Baptists next to what hap- though their marriage lasted only four pened on Fire Island.” Yet Klein re- years — but was mostly known as an in- membered how proud von Furstenberg RK AVENUE PORTRAIT FROM WWD EGON ARCHIVES; AND DIANE BY SUSAN WOOD/GETTY IMAGES

ternational playboy, turning up with PA was when his son Alex was born. great style at fashionable parties, night- “I remember how he kept a picture clubs and hotels around the world. of Alex on the night table next to his The cause of death could not be bed on Fire Island,” Klein said. “We learned. Services were held on Saturday Here: Egon von always had that in common, that we at the Chiesa degli Artisti (The Artists Furstenberg at his Park had children, little children that we Church) in the Piazza del Popolo in Avenue home in 1972. were so proud of.” Rome. Von Furstenberg’s body was then Below: A young Egon By 1978, von Furstenberg’s men’s expected to be flown to Strobl, Austria, and Diane von wear company had 11 licenses in the where he is to be buried today following FFuurstenbergrstenberg in New York U.S. and Italy. He published “The Power a funeral mass in a church there. inin thethe earlyearly Seventies.Seventies. Look” with Holt, Rinehart and Winston “His personality being so big, it way in 1978, a how-to-dress guide for men, overshadowed what his contributions with tips on exercise, sports, travel and were in terms of style,” said Calvin success: “Where to find the movie colony Klein, who befriended the von in Bombay — a suburb called Juhn; how Furstenbergs in New York, to prepare for conversation in Paris — where they moved following read Balzac, Proust and Kafka,” accord- their wedding in 1969 and ing to an article in W. Two years later, quickly became the couple of William Morris published “The Power the moment. “But I think he Look at Home,” based on the dark and was a great spokesperson of brooding interiors of von Furstenberg’s what was modern, for life many apartments around the world. and for freedom of expres- In the late Eighties, von Furstenberg sion. His sense of being moved back to Italy, where his compa- overshadowed everything, ny remains based in Milan, selling both and that was a gift.” a collection of custom-made clothes A picture in Vogue in and an inexpensive line marketed to 1969 of the young Prince retailers like Upim, Europe’s equiva- Edouard Egon von und zu lent to J.C. Penney. However, he contin- Fürstenberg, shirtless and sit- collection of simple, printed T- ued to spend winters in Miami, and traveled around to ting cross-legged in the village shirt dresses that she brought his other homes in Paris, Salzburg, Mexico City, Mikonos, of Porto Rotondo in Sardinia, back to America and presented to Greece, and Rio de Janeiro, and even recently returned showed the “super looking broth- Diana Vreeland, then the editor of to New York to see a few fashion shows. er of Princess Ira [who] takes his Vogue. With a partner on Seventh “He was a sweet, lovable friend that, even in dark tan and the good beach life where he Avenue, she launched her signature col- moments, with his smile and joyful life, always bright- finds them — which is all over the map” lection in 1970 under the tag line, “Feel like ened up the room,” said Valentino. —a trait of internationalism that played a woman, wear a dress,” and the couple shot to Von Furstenberg’s longtime friend Pierre Cardin re- throughout his life. fame with her signature jersey dress, their photo- called, “I knew Egon since he was a young boy of 17 on He was born in Switzerland, the son of two houses — genic good looks and enviable titles. Capri and he wanted to be a designer. He was a good on the side of his father, Prince Tassilo von Furstenberg, “Egon was a real beauty when he came on the scene friend to me, and I am sorry to hear he is gone, especial- an Austro-German clan whose title dates back to the 15th in New York, and Diane was a gorgeous woman,” Klein ly as he was so young. He made a big name for himself century; on the side of his mother, Clara Agnelli, sister of said. “Egon was this absolute beauty. They were the cou- and his story had such romance.” the late Gianni Agnelli who controlled the Italian Fiat ple of the moment.” Carla Fendi added that she met Egon in New York right fortune. Through his family connections, he was chris- Ye t they also personified the anything-goes element of after he married Diane. “They were a couple that took my tened by Pope John XXIII, and after his parents separat- the Seventies. A cover story in New York magazine in breath away, with their innate beauty and elegance. Egon ed, von Furstenberg was raised in Venice with his older February 1973 set the social world ablaze when the couple was a refined, brilliant, cheerful man with a great esthetic sister and a brother in a privileged existence, consider- discussed their open relationship. Diane commented that sensibility that he expressed in the world of fashion.” ing the family controlled about 37 percent of the coun- “the only way for a relationship to survive, I think, is to Von Furstenberg is survived by his mother, Clara, his try’s economy at that time, von Fürstenberg said in a 1994 have no sex at all,” and Egon, a prince photographed with son Alex and his daughter, Tatiana. interview in WWD’s sister publication W. just a towel around his , said, “You just live once, and Many of his friends acknowledged that von Furstenberg Von Furstenberg was never shy about going after what- I am getting the most out of it. After a while, passion — you had been ill recently, and had been slowing down for ever entertainment interested him at the moment, describ- know — cools. So a little here, a little there at three in the years. Still, Mario Boselli, president of the Italian ing himself as a spoiled child who saw his first couture col- afternoon. What harm?” Were he to meet an attractive man, Chamber of Fashion, said he saw the designer during the lection at the age of two, in his mother’s arms, and could he said, he wouldn’t mind experimenting, and in later in- last women’s wear collections and was unaware von identify a Pucci bathing suit on the beaches of Italy at four. terviews, von Furstenberg declared himself bisexual. Furstenberg was sick. Klein last saw him this spring in As an economics student at the University of Geneva, That article did a lot of damage to his relationship Rio, where von Furstenberg owned an apartment facing von Furstenberg met Halfin, who was from Belgium. They with Diane, he once said, adding, “What she said, what I the ocean and a house in the mountains outside the city. married in Montfort-l’Amaury in France and moved into said, wasn’t what we thought of each other.” They di- “He was so great, he insisted on showing us the city, adjoining apartments at 1050 Park Avenue, one for them vorced later that year. even though we had already been there before,” Klein and one for the children and their staff. They were a glam- He remarried several years after his divorce from said. “He wanted me to see it the way he sees it. We’ve orous couple, appearing at El Morocco at night, while von Diane to the Mississippi-born Lynn Marshall, who had all grown up now, but it was only a couple of years ago Furstenberg proudly rode the subway each day to a train- walked into his store on Madison Avenue. Their rela- when I was on a dance floor in a club in Budapest, it was ing program at Chase Manhattan and then worked as an tionship was less dramatic, though they spent only two in the morning, and who comes across the dance investment broker at Lazard Frères & Co. Diane knew she about two months of the year together by the Nineties. floor but Egon? I would always just unexpectedly run wanted to work, “and not be a Park Avenue socialite,” she After tiring of banking, a career that he felt was ex- into him in fun places, he traveled so much. I always once said, and her husband pushed her into fashion. pected, Egon worked for Korvettes as an assistant buyer knew if I was in the right club in the right city, Egon Through a friend, Angelo Ferretti, a flamboyant and studied at the Fashion Institute of Technology at would be there.” Italian entrepreneur who owned factories in Italy for night. While doing some women’s apparel, Egon was —With contributions from Luisa Zargani, printing, T-shirts and lingerie production, Diane von known best for his men’s wear, and started his own men’s Amanda Kaiser and Alessandra Ilari, Milan, Furstenberg, pregnant with Alexandre, created a small wear line, first as part of Diane von Furstenberg’s collec- and Jessica Kerwin, Paris