Wishing on a Star Wishing on a Star

L.A. RETAIL HIT BY TERROR WARNING/2 WWWDomen’s Wear Daily • The Retailers’FRIDAY Daily Newspaper • April 30, 2004 • $2.00 Mugler’s newest hero, page 7. WWDFRIDAY Mugler’s newest hero, page 7. Beauty Wishing

OnNEW YORK — Fora its latest Star women’s scent, Tommy Hilfiger has turned on the star power, teaming up with Beyoncé Knowles. The fragrance, called True Star, is due out in September and could do $50 million at retail. For more, see page 6.

The Cost of Luxury: PPR’s Final Gucci Bill To Approach $9 Billion By Miles Socha and Amanda Kaiser PARIS — Gucci Group’s days as a public company are near an end — at a cost to Pinault-Printemps-Redoute of close to $9 billion. De Sole on His Final Gucci Day. Page 4 At the conclusion Thursday of its monthlong tender offer, PPR owned 99.23 percent of Gucci’s shares, setting the stage for the expected delisting of the Italian luxury conglomerate. Gucci is now See PPR, Page5 PHOTO BY GEORGE CHINSEE; STYLED BY BRYN KENNY GEORGE CHINSEE; STYLED BY PHOTO BY 2 WWD, FRIDAY, APRIL 30, 2004 WWDFRIDAY Te rror Alert Chills L.A. Malls Beauty By Rose Apodaca Jones or two. “We’ll see,’’ he said. people each month and last year BEAUTY and Marcy Medina “What’s gone is gone.” generated $248.4 billion in sales True Star, Tommy Hilfiger Toiletries’ new fragrance, will maximize involvement of Enclosed malls, even with the through 735.7 million square feet. pop star Beyoncé Knowles in its estimated $15 million U.S. marketing campaign. LOS ANGELES — Some fearful emergence of outside shopping As security was tightened at 6 shoppers in the biggest U.S. re- promenades in recent years, re- the Westside Pavilion and the two Thierry Mugler, who is launching a men’s scent called BMen, has created tail market stayed away from main at the center of Los other major malls closest to the 7 imaginary comic book characters to populate his fragrance universe. stores Thursday because of a Angeles County’s $75 billion- Federal Building, Santa Monica Despite showing signs of progress in its efforts to pare its massive debt, threat of a potential terrorist at- plus in annual retail sales, as Place and the Westfield Shop- Revlon Inc. remained in the red for the first quarter. tack at an unspecified shopping well as the area’s culture — pingtown Century City, the fear 9 mall in the vicinity of the Fed- mythic and real. The malls have and uncertainty was reflected eral Building on the city’s west been parodied and celebrated in during lunchtime in the 14- GENERAL side here. songs such as “Valley Girl” and restaurant food court at Westside Domenico De Sole, the former chairman and ceo of Gucci, talks about the “It’s killing us,” said Gene the 1991 movie “Scenes from a Pavilion, where many workers Thompson, senior vice presi- Mall,” in which Woody Allen and said business was as much as 40 4 legacy he and Tom Ford have left behind, and his next moves. dent of security for Macerich Bette Midler bickered their way percent off. With its days as a public company nearly over, Gucci Group will become a wholly Co., which owns the 160-door through the Beverly Center. The Nordstrom beauty de- 1 owned subsidiary of Pinault-Printemps-Redoute at a cost of close to $9 billion. Westside Pavilion, anchored by California is considered the partment was sparsely populat- a Nordstrom and Robinsons- nation’s biggest retail market ed on both sides of the counters. A terrorist scare in Los Angeles Thursday significantly curtailed business in May, less than 2 miles from the based on sales and square A MAC Cosmetics artist, who 2 the area malls. Federal Building. “Business is footage of shopping centers, ac- asked not to be identified, said, The strength of Liz Claiborne Inc.’s bridge segment and European business significantly off. There are some cording to the International “I got 30 calls from friends and 2 helped offset declining sales in the first quarter. people shopping, but this is not Council of Shopping Centers. The family about this and I don’t feel a normal day.” He said business state’s 6,243 shopping centers at- comfortable being here. I may Ruth Finley, founder and president of the Fashion Calendar for 60 years, shows may be back to normal in a day tract an estimated 24.8 million Continued on page 13 11 no signs of letting up and will be honored Monday by Citymeals-on-Wheels. SUZY Love Story Redux...Casting “The Three Stooges”...Johnny Depp, You 16 Rogue. Avon Earnings Vault 49.7% Classified Advertisements ...... 14-15 By Ross Tucker Excluding benefits from curren- have been easier to come by in To e-mail reporters and editors at WWD, the address is cy translation, the region report- developing markets, the company [email protected], using the individual’s name. NEW YORK — Double-digit sales ed a 24 percent gain. also realized gains in its home increases in each of its interna- “European results continue to market of the U.S. as well. Sales 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. tional markets helped Avon benefit from Russia’s stellar per- in the U.S., its largest market, VOLUME 187, NO. 91. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional Products Inc. outdo even its own formance,” said Andrea Jung, grew 7 percent, driven by an 8 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 expectations for the first quarter. chairman and chief executive, in percent gain in beauty sales. West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; For the three months ended a statement. According to the firm, In particular, the firm said the Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, March 31, the New York-based Russia reported a 90 percent sales skin care category performed well Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- cosmetics direct seller saw increase during the quarter, a 70 in the U.S., a sentiment expressed President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at earnings vault 49.7 percent to percent gain excluding benefits earlier in the week by William additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration $148.1 million, or 62 cents a di- from currency translation. Lauder, chief operating officer of No. 88654-9096-RM0001. 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Comparatively, the com- 27 percent spike in sales, a 10 strength in a number of different correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, pany reported earnings of $98.9 percent gain excluding the bene- segments, not just the moisturiz- please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild million, or 42 cents a share, in fits of currency translation. ing segment,” Lauder told WWD 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 the year-ago period. Venezuela, Brazil and Argen- following the announcement of these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. Sales, fueled by a 23 percent tina were the stars of the Latin the company’s third-quarter re- 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 gain in beauty products, im- American market, where sales sults. “There’s a general trend to- TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART proved 19.5 percent to $1.75 bil- grew 24 percent, or 17 percent wards skin care products.” WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED lion from $1.47 billion. Weakness before currency benefits. Based on the strong results, TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE of the U.S. dollar worked to the China, a country the company Avon’s management now expects ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. company’s benefit. Excluding referred to as its “top-growth earnings per share for the year to positive affects of currency ex- prospect,” remained the largest be in the range of $3.30, a sizeable change, sales rose 14 percent. generator of sales gains in the bump from previous guidance of The European and Latin Asia-Pacific market. For the Asia- between $3.18 and $3.20 a share. In Brief American markets experienced Pacific region sales expanded 17 “We are very confident that some of the most dramatic percent, and 10 percent in local this year will reflect the true im- ● SPEEDO SIGNS COUGHLIN: Speedo has signed a multiyear growth. European sales rose 38 currencies. pact of Avon’s transformation tak- endorsement deal with American swimmer and Olympic hopeful percent during the quarter. While organic growth may ing hold,” said Jung. Natalie Coughlin. The 21-year-old, who trains in Berkeley, Calif., will compete at the U.S. Olympic team trials for swimming in Long Beach, Calif. in July.

● SUCCESS FOR DRESS: Dress Barn Inc. on Thursday reported a 6 percent increase in April comparable-store sales. The Liz Claiborne Net Rises 7.2% Suffern, N.Y.-based specialty retailer added that net sales for the four weeks ended April 24 advanced 9.8 percent to $73 mil- By Evan Clark during the 14-week period a lion from $66.5 million a year ago. Those results helped fuel a year earlier. 10.6 percent advance in third-quarter net sales to $183.3 million NEW YORK — Liz Claiborne Inc. Chairman and chief executive from $165.7 million last year, and a quarterly comp increase of 7 made up for declining first- Paul Charron on a conference percent, the company said. The majority of retailers will report quarter sales in its flagship and call with analysts said the retail April same-store sales next Thursday. moderate brands with strength environment was “somewhat in more expensive goods and in- more robust” than anticipated. ● OUTSTANDING MOMS: The National Mother’s Day committee ternational markets. “This is attributable to several presented their 26th annual Outstanding Mother awards at the The vendor, which markets a factors, including general con- Marriott Marquis on Times Square Thursday. Liz Claiborne Inc. portfolio of brands stretching sumer confidence about the and Syms Corp. sponsored the awards and the event was hosted from Ellen Tracy to Enyce, also economy and the stock market, by Karen Murray, group president of men’s wear at Claiborne. affirmed guidance for the year. seasonal weather patterns, which WNBC-TV’s Jane Hanson presented awards to Marcy Sym, chief Second-quarter projections, how- have facilitated more complete executive officer of Syms; actress Doris Roberts; former tennis ever, were below analysts’ expec- sell-through of heavier-weight champion Chris Evert; BET co-founder Sheila C. Johnson, and tations and investors traded items…and, perhaps most impor- Barbara Corcoran, chief executive officer of The Corcoran Group. shares of the firm down $1.92, or tantly, cleaner retail inventories 5.2 percent, to $35.21 on the New coming out of the holiday season ● ANN TAYLOR SPLITTING STOCK: The board of directors at Yo rk Stock Exchange Thursday. as a result of retailers focused on Ann Taylor Stores Corp. gave the nod on a 3-for-2 stock split Earnings during the first quar- productivity metrics,” he said. Thursday, after the market closed. The company plans on mak- ter rose 7.2 percent to $68.8 mil- It appeared that little of this ing the split “on or about May 26, 2004 to stockholders of record lion, or 62 cents a diluted share, improved environment at retail at the close of business on May 11, 2004,” the retailer said in a compared with a year ago, when has trickled down to Claiborne’s statement, adding that the split will end up increasing the profits were $64.1 million, or 59 guidance for the year, which amount of outstanding common stock by 50 percent, “with cash cents. Charron said was conservative. being paid in lieu of fractional shares.” Shares of the retailer Sales for the 13 weeks ended A look from the Claiborne-developed The company reaffirmed its ended the day down 2.63 percent to $40.36. April 3 inched up 2.5 percent to Intuitions better line, an exclusive full-year projections, which call $1.1 billion from $1.08 billion for Dillard’s. Continued on page 15 INTRODUCING RALPH RALPH LAUREN

COOL

THE NEW FRAGRANCE FROM RALPH 4 WWD, FRIDAY, APRIL 30, 2004 De Sole on Ford,Fashion — And Arnault By Samantha Conti model: the balance between Tom and me, the creative cious. We could have even used more time finding the and business side.” management talent.” LONDON — It was an action-packed and graceful goodbye. He considers his greatest achievements to include Ironically, De Sole was one of the more cautious Domenico De Sole spent his final day at Gucci Group the overall performance of the company and the reposi- spenders during the luxury acquisition sprees of the making sure his stores around the world had enough tioning of Yves Saint Laurent. late Nineties. He always said his goal wasn’t to spend tennis shoes, in particular the ones with the crocodile “I think it’s telling that PPR asked Mark Lee [ceo of money “like a drunken sailor,” and turned his back on details and the signature red-and-green stripe. YSL] to stay. And I do believe that Tom did a brilliant job the Fendi purchase in 1999 when the bidding spiraled “They’ve sold out, and I’m agitated about the re- at YSL. That company has long legs. It’s going to go far.” out of control. Arnault and Prada chief Bertelli ended orders and deliveries,” De Sole told WWD, just a few Does he regret not seeing the turnaround at YSL, up paying close to $1 billion for the company — one of hours after the put by Pinault-Printemps-Redoute ex- which is still in the red, through to the end? “It didn’t the highest multiples ever paid in the history of the lux- pired on Thursday afternoon. “There are two things I do work out. That’s life. What are you going to do?” ury business. well: get agitated and worry.” He said, too, he’s proud of Gucci’s transparency with Despite his regrets about the speed with which he And when there’s no more business to worry about? shareholders. “Listing the company was the right thing built Gucci, De Sole sticks by the multibrand approach. “I’ll go nuts, probably,” he said with a laugh. to do — I have no regrets about that. It gives the busi- “Having a single brand is great, but if it’s very success- In a telephone interview from New York, a reflective ness a sense of urgency and it’s rewarding for both in- ful, how can you keep it growing without going down De Sole lauded his former nemesis, market? I think the brands we ac- LVMH Moët Hennessy Louis Vuitton quired were great, I just wish we had chief Bernard Arnault; criticized his had more time.” own decision to build up the Gucci Despite the battles he fought — portfolio so quickly, and admitted he’s most notably with Arnault, when the looking forward to working with Tom Frenchman attempted a hostile Ford again one day. takeover of Gucci in 1999 — De Sole is De Sole, who leaves for his home in using his exit from Gucci to put the South Carolina today, also talked past to rest. about the legacy he and Ford have left “I think the battle with LVMH was behind, and his next moves. good for the industry, it was good for “That’s the big question. What AM I the luxury brands, it created competi- going to do?” De Sole pondered. He tion and conflict, it was exciting.” denied those stubborn market rumors And in a complete about-face, De that he’s looking to take over Bally, Sole praised Arnault, a man he once Valentino or Versace. “At this point, accused of “trashy behavior” and I’m not interested in running anything likened to “glue” — and that was just — just my boat — and I’m actively re- on the record. But times have changed. jecting any phone calls.” “I admire and respect Arnault’s That said, he’s headed back to Italy time, patience and tenacity in turning next week for his first meeting as a around Christian Dior.” board member of Telecom Italia, the Would he go so far as to sit down for Italian telecommunications company. a drink with the Frenchman who tried And while he may be on his way to take over his company, the man who out the door, he’s still talking that once tried to drive a wedge between Gucci talk. “We had strong double- him and Ford and insisted De Sole digit retail sales growth worldwide in was simply a PPR employee? “I would February, March and April, and watch think about it. The past is past.” orders were up 40 percent at the In a similar magnanimous spirit, Basel Fair,” he said. De Sole even offered up a thank you In the month of April, retail sales to Francois Pinault, his former white growth at the Gucci brand was close to knight and the man ultimately respon- 20 percent. At Bottega Veneta, retail sible for not renewing the contracts of sales growth was 60 percent in the Ford and De Sole. “I am grateful to first quarter, while at Yves Saint him for the extra five years at Gucci, Laurent and Sergio Rossi, sales and have a lot of respect for the com- growth was in the strong double-digits pany,” he said. for the first quarter. Looking back over the years, De De Sole is famous for his workaholic Sole said his expectations for Gucci habits (he hasn’t had a real day off in were never that grand. years) and obsession with the phone “I was an insider from the begin- (he calls colleagues in the wee hours ning: I knew the immediate problems and on the weekends, with updates, the company had, and I knew how to ideas, and to-do lists). Now he is finding fix them. Back in 1993, Gucci had novel ways of channeling his energy. I think we worldwide sales of $198 million, and I “I’ve learned to use e-mail, and I’m “ thought I could get them up to $350 going to send Tom messages every caught everybody million. Beyond that, I didn’t know. I other day. I’m also going to spend my also didn’t know the great job that time boating, flying and doing the by surprise — our Tom was going to do. I think we things I haven’t had time to do.” caught everybody by surprise — our De Sole — who made a $30 million model worked. model worked.” profit in January from the exercise of — Domenico De” Sole The industry has changed, too. Gucci stock options and will pocket “There is money to be made now — 10 more cash when he completes the sale years ago it wasn’t like that. What was of his remaining shares as part of the once considered an artistic business PPR put — has just bought a 43-foot is now a place to invest, something sailboat, which gets delivered next that generates a profit.” year. He also plans to tool around in He said the great emerging market his 1986 metallic silver Porsche. “That for luxury is China. “I was just there car has been in mothballs for the past last month, and have been going to 10 years, and I finally got it fixed. And Beijing for the past 10 years. There is I’m driving it home from Charleston tomorrow.” vestors and managers. And I think we were real stars no doubt in my mind that the old luxury map will be re- De Sole was generous — in more ways than one — when it came to disclosure. We were very, very candid defined by China. It is going to be what Japan was in the about his decade at Gucci, which generated more and transparent and I think we’ll be missed for that.” Nineties. The Chinese are so aspirational and they love drama, tears and sleepless nights than most managers De Sole never minced his words with shareholders. to travel.” see in a lifetime. He was the first to sound the alarm of the 1997 Asian He said he’s upbeat about the future. “The industry During his tenure, he battled a series of adversaries crisis, when most other managers had their heads has had two very difficult years, but that’s changing. I — Maurizio Gucci, Patrizio Bertelli and Bernard buried in the sand. And, of course, he was famous for think to be successful in the long term, companies have Arnault, to name a few. “Make my day” became his his colorful language. He sometimes referred to certain to stick to their core values and be very careful about mantra the moment Arnault began his hostile takeover adversaries as “pathological liars.” brand extensions.” of Gucci in 1999. Clint Eastwood’s famous line also be- But there were missteps along the way, which De As for De Sole’s future, he said he’d love to do some- came De Sole’s philosophy, of sorts, when it came to Sole acknowledged. thing with Ford, and in the meantime, said he plans to running the business. Indeed, De Sole has always con- “Gucci went too quickly from one brand and one cul- see his creative partner a lot. “We already know we’re sidered business to be war, one in which victories are ture to a multibrand group. It would have been better had getting together this summer, and of course, I’ll be in measured in numbers. we made the acquisitions over a 10-year period. But it was touch by e-mail.” “I think the legacy we left is twofold: We took care of very quick, and then we had Sept. 11, and other problems. Another thing is for sure: If he has to leave a company our shareholders,” said De Sole. “Everybody who in- “In addition, in just a few months we went from pro- again, he’s never going to repeat the Gucci experience. vested in Gucci made money — and that’s the goal and ducing clothing for Gucci to producing for Gucci, YSL, “One thing I’ve learned is that once you decide to go, task of every manager. I feel like I can say ‘mission ac- McQueen, and Balenciaga. The technical and opera- you should do it as fast as you can. Six months was too complished.’ And I think we gave the industry a new tional aspects of building the brand portfolio were fero- long. It was a long goodbye.” WWD, FRIDAY, APRIL 30, 2004 5 PPR Wins 99.23% of Gucci

Continued from page one expected to become a wholly owned sub- sidiary of PPR. PPR is extending its tender offer through Higher Ground PHOTO BY THOMAS IANNACCONE Ingrid Rossellini, Pia Lindstrom May 20, as required under Dutch law and as part of the settlement agreement struck in and Isabella Rossellini. 2001 that saw PPR rival LVMH Moët Hen- nessy Louis Vuitton sell its Gucci stake left Gucci’s Share Price Since Its IPO over from its attempt to take over the Italian ($U.S.) company in 1999. Fashion Should any shares be outstanding after that, PPR can launch a “squeeze out” of any stragglers. Scoops The financial market has long considered delisting a fait accompli, given that PPR BEAUTY IS DIRT CHEAP: Not one to would assume full management control and mince words, the late Ingrid that Gucci’s supervisory board and two ma- Bergman was known to tell jor banks deemed the offer fair and advised designers their prices were too minority shareholders to accept it. steep. “I think she offended At the outset of the offer, PPR owned several designers by saying their 67.58 percent of the company and offered clothes were too expensive,” said $85.52 a share. her daughter, Isabella Rossellini, In accordance with Dutch law, where at Thursday’s preview of “Here’s Gucci is incorporated, the company held an Looking at You Kid: Selections exceptional shareholders’ meeting in Am- from the Ingrid Bergman sterdam last week to discuss the offer, and Collection.” “People attacked her the slim turnout spoke to the lack of ambigu- for it and she said, ‘I just said the ity about the stock’s future. truth. How can someone pay so PPR launched its tender offer on April 1 much money for a dress?’” and had not given any indication of its progress continued Rossellini’s twin, Ingrid. until it closed on Thursday. But Gucci’s largest SOURCE: YAHOO! FINANCE As for whether Bergman doled minority shareholder, Credit Agricole SA, indi- out fashion advice to her cated early in the offer that it would tender its will,” De Sole said at the time. “But from Day Ultimately Gucci triumphed on its mar- daughters, Ingrid Rossellini said, 8.5 percent stake, which would elevate PPR’s One, everybody — PPR included — agreed ket debut, with its share price rallying 22.2 “Never. She just said, ‘Don’t holding beyond 75 percent. Those 8.6 million we should try to avoid the put on the shares. percent on the first day of trading to close spend too much money.’” shares came at a cost of $732 million. At the time the deal was made — before Sept. at $26.88. Despite her frugalness, To buy all the 32 percent of Gucci stock it 11 [2001] — everyone felt the stock would be “It was the most exciting thing that ever Bergman splurged for the didn’t own at the start of the offer, PPR said way, way above the put price. Our wish is that happened to me in my working life,” De Sole occasional Nina Ricci, Christian the operation would cost about $2.5 billion, Gucci remains a public company.” said at the time about the NYSE debut. Dior or Balmain. A few of her raising the final amount it paid for all of Gucci But when PPR decided earlier this year “There was pandemonium at the booth, and designer frocks are on display at to about $8.78 billion, or 7.2 billion euros. not to renew the employment contracts of De the noise on the floor was incredible.” the exhibition at Scandinavia Meanwhile, in a filing with the U.S. Sole and group creative director Tom Ford, it The IPO marked the beginning of a new House, which opens Saturday and Securities and Exchange Commission, Gucci became clear the French group was willing to era for Gucci, founded in 1923 by Guccio ends July 17. Bergman’s released some details of its budget for the buy up to 100 percent of the company’s shares. Gucci. Just a few years earlier, Bahrain- daughter, Pia Lindstrom, and son, next few years. Gucci sees revenue growth of Over the last year, PPR has been prepar- based investment bank Investcorp and Robertino Rossellini, also checked 9.3 percent for this year, 12.2 percent in 2005 ing for its foray into luxury by selling off its Maurizio Gucci were wrestling for control of out the show. and 9.6 percent in 2006. Gucci had revenues traditional business-to-business activities to the Florentine fashion house. Isabella Rossellini, the former of $3.18 billion, or 2.59 billion euros, in 2003. concentrate on luxury and retail. When Investcorp acquired full control of face of Lancôme, laughed at the The filings also spell out how much PPR Elisabeth Jamieson, European retail re- Gucci in late 1993, the firm was financially idea of returning to modeling and Gucci executives stand to gain by cash- search analyst at Lehman Brothers in Lon- and operationally crippled and near liqui- cosmetics. “I’m 52. I don’t think ing in their remaining stock options, as of don, said Thursday’s news would likely have dation. After an emergency rescue plan, cosmetic companies have plans to March 31, at the $85.52 tender price. The top little impact on the stock market. which included immediate capital infusions come back to me. I’m available.” three are: De Sole, $4.2 million; Brian Blake, “For the most part, it’s been priced into to pay back salaries and suppliers, as well as $2.8 million, and chief financial officer PPR’s share price,” she said. “There could be a emergency mediation sessions with angry GREEN GRASS: As temperatures in Robert Singer, $1.6 million. marginal uptick in the share price but nobody’s union leaders, Gucci managed to break even Los Angeles lingered beyond 90 Separately on Thursday, fresh signs emerg- going to make a lot of money. There was a ques- or post a small profit in 1993. degrees well after the sun set ed of a smooth transition for Gucci. The com- tion mark, but it was mostly expected.” In fact, Gucci’s IPO helped set the stage for Tuesday night, Greybull Press pany confirmed that Renato Ricci, Gucci’s Jamieson said she doesn’t expect analysts one of fashion’s most gripping power plays, publishers Roman Alonso and Lisa longtime human resources chief, would re- to modify their forecasts as a result of the when LVMH launched a hostile takeover bid Eisner mercifully opted for a last- main a consultant for one year. tender acceptance, adding that it is likely for Gucci in early 1999. In one of the more minute switch from celebrating Also Singer, who is exiting along with De Gucci will be delisted and made another di- dramatic developments, Prada helped LVMH their newest picture book, “The Sole, has agreed to be available to provide vision of PPR. “If this happens, I would chief Bernard Arnault by selling its 10 per- Hollywood Life: The Glamorous consulting services to Gucci through the end expect less financial information than in the cent Gucci stake to the French group after De Homes of Vintage Hollywood,” of 2005. past,” she noted. Sole rebuffed Prada chief Patrizio Bertelli’s from the velvet-covered lounging But while PPR’s purchase of Gucci seem- PPR stock slipped 0.1 percent to close on advances for a partnership. area inside the Chateau Marmont ed an anticlimax, a delisting was not always Thursday at $102.77, or 87.10 euros on the In March 1999, PPR stepped in as Gucci’s to its wonderful courtyard. Under seen as inevitable. Paris Bourse. white knight, paying some $3 billion for a 40 the stars, photographer Eliot In an interview in 2002, Gucci Group chief Gucci went public in November 1995, its percent share in the fashion company. That Elisofon’s snapshots of Sixties-era executive Domenico De Sole said he would do shares debuting on the New York and Am- cash allowed De Sole and Ford to form a movie stars flashed on an everything in his power to goose the share sterdam stock exchanges. Gucci originally multibrand group comprising labels such as oversized screen. Magical, totally. price so the PPR put didn’t happen. At the time, applied to list shares on the Milan exchange, Yves Saint Laurent, Balenciaga, Boucheron, But those who know how the put price was set at $101 a share, but was but market regulator Consob turned down its Sergio Rossi, Bottega Veneta, Stella protective Chateau owner Andre subsequently reduced when Gucci returned request. There was speculation that losses at McCartney and Alexander McQueen. Balazs is of his perennially green cash to its shareholders, including PPR. the company — linked to ongoing restructuring — With contributions patch of grass were all the more “PPR must honor their promise, and they efforts — shook Consob’s confidence in Gucci. from Robert Murphy, Paris impressed. He’s been known to ask upward of $15,000 to use it — a kind of re-sod security. But there they were, a couple dozen of Greybull’s best pals — including Colleen and Elizabeth Tom Ford to Join Advisory Board of Sotheby’s Callendar, China Chow, Kelly Lynch and Mitch Glazer, Loris Azarro PARIS — Although Hollywood beckons in his post-fashion career, Tom Ford is “Tom Ford is one of the great innovators and tastemakers of our era, and designer Vanessa Seward, Gina also poised to put his mark on the auction world. And it won’t be at Christie’s, we are delighted we are able to draw on his vision and unique creativity,” the Gershon, Sarah Paulson and Clea which is owned by his former boss François Pinault, but at its rival, Sotheby’s. spokeswoman said. DuVall — sprawled out on the Sotheby’s confirmed Thursday that Ford, former group creative director at Tobias Meyer, Sotheby’s worldwide director of contemporary art, recom- lawn, popping popcorn during the Gucci Group, has joined its advisory board. Sotheby’s officials added that mended Ford be included on the board, which is chaired by Walter J.P. slide show. With some 80 books Ford has already attended his first meeting, which was held here recently. Curley and deputy chaired by Alexis Gregory. Other members include Ann sold, Alonso and Eisner continued “The advisory board consults to management on a broad variety of strate- Getty, Charles de Gunzburg, Prince Amyn Aga Khan, Alexander Laughlin, to hold court after midnight, gic matters, including business and market opportunities, as well as our in- Carroll Petrie, Carol Price and Hilary Weston. finally saying their goodbyes to ternational operations,” said a Sotheby’s spokeswoman in New York, noting Ford officially exits Gucci Group today after contract negotiations with Chloë Sevigny, who proudly that the current advisory board consists of 17 individuals from around the majority Pinault-Printemps-Redoute failed last fall, ending his 10-year ca- showed off her backstage sticker world who meet to discuss current issues important to the art world and visit reer there. His position with Sotheby’s could at least provide an outlet for pass from the Morrissey concert private collections and homes. Ford’s taste for contemporary artists such as Richard Serra and Donald Judd. she just returned from. 6 WWD, FRIDAY, APRIL 30, 2004 The Beauty Report

The new Hilfiger’s Star Power Clarins line. By Julie Naughton challenges over the past several years, but said he thought this deal was a big step in the right direction. NEW YORK — Tommy Hilfiger Toiletries is turning to a None of the Lauder executives interviewed for this proven star to reverse its lackluster U.S. fragrance fortunes. story would comment on projected sales except to say As reported first by WWD, the Estée Lauder Cos. divi- that the fragrance is aiming for a top five position with sion signed a multiyear deal in January with pop star the new juice, although industry sources said they Beyoncé Knowles to help market a new women’s fra- believe the brand is hoping to do $50 million at retail in grance, set to launch in the U.S. in September and glob- the U.S. during its first year on counter. Executives also ally in October. declined comment on the persistent reports that Lauder With the new offering, called True Star, Lauder is max- may partner with Sean “P. Diddy” Combs to do a men’s imizing its involvement with the pop princess: Not only counterpart to True Star next year. will the brand invest in TV advertising — 30-second and With True Star, the brand is looking both to draw in 60-second spots directed by Laur- new customers and also to recap- ent Chanez and featuring Knowles ture past users, noted Carol Russo, singing an a cappella version of senior vice president of sales and

“Wishing on a Star” — and a lavish marketing for Aramis and Design- GEORGE CHINSEE PHOTO BY print campaign shot by Mario er Fragrances. The scent’s pri- Testino, it also is putting a sleeve mary age target is 25- to 45-year- on the fragrance’s outer packaging olds, although executives also with a large black-and-white por- hope to draw in 15- to 25-year-olds. Clarins To Brighten trait of Knowles. Industry sources In the U.S., it will be available in estimate that the total advertising Hilfiger’s current distribution, and promotional war chest for the about 1,800 department and spe- Its Skin Care Lineup launch is upward of $15 million for cialty store doors at this time. the U.S. alone. The floral-oriental juice was NEW YORK — Clarins plans to add a little light to “We feel that True Star is a his- developed by Raymond Matts, vice its skin care assortment this summer. torical project for us,” said Fab- president, corporate fragrance With Bright Plus, a new collection of skin care rice Weber, president of Aramis development worldwide, Aramis products set to launch in the U.S. in August, the and Designer Fragrances, in an and Designer Fragrances, in part- brand is aiming to combat factors that cause interview outlining the specifics of nership with Quest. The first hyperpigmentation. the program late this month. “The accord comprises “wet, watery It’s all part of an effort, said recently named association of Tommy Hilfiger and notes,” noted Matts. The second Clarins brand president Eric Horowitz, to “ad- Beyoncé Knowles is an extraordi- accord comprises “sheer floral dress the changing face of America.” narily potent cocktail. With the notes,” he said, including honey- “We want to expand existing ranges, but also iconic, global appeal of this super- suckle, sweet pea and syringa, and define new category opportunities,” noted star [Beyoncé], I think we have a the third accord is made up of such Horowitz, who said that growing the brand’s facial [brand with] extraordinary aspira- diverse notes as Kashi cereal and skin care range has been and continues to be a tional strength.” rice pudding. priority, and noted that the brand has been grow- It’s all part of the latest trend in The True Star ad. Two sizes of eau de parfum will ing at a “double-digit rate” for the last 11 months. the prestige beauty world: to turn be offered: 1.7 oz. for $45 and 3.4 oz. Recent launches of the company’s men’s around an aging brand’s fortunes by looking to Holly- for $60. Two ancillaries also will be launched with the range and its Super Restorative range were in- wood. And Lauder’s not the only one to realize that strat- juice: a 6.7-oz. body lotion for $29.50 and a 6.7-oz. shower gel troduced with this idea in mind, and Horowitz egy’s value. First, Nicole Kidman signed on as the face of for $26.50. A third ancillary, a 1.7-oz. fragrance satin shim- said he hopes to speak to an even broader audi- Chanel No.5 last October. In the month after the Knowles mer for $25, will be on counter for holiday. ence with Bright Plus. deal was signed, Elizabeth Arden announced that it had The glass bottle, which has an opalescent finish at its The four products in the line, intended to be signed a deal with another pop princess, Britney Spears. base that lightens as it moves up the sides, was designed used as a complete system, are formulated to give Then, Unilever Prestige reported that it had signed to look like an award, noted Robin Mason, executive skin a brighter appearance and to address issues Scarlett Johansson to front its new women’s scent, com- director of global marketing. The bottle is topped by an such as uneven complexion due to such causative ing this fall. engraved chrome spray-through cap. factors as sun damage, dark spots, age spots, preg- Will it work in Hilfiger’s case? Lauder executives cer- Print advertising breaks in September magazines; nancy and hyperpigmentation, said Horowitz. The tainly believe so. As reported in January, Patrick Bous- TV ads break on cable at launch. A fourth-quarter co-op products also contain the brand’s proprietary quet-Chavanne, group president at The Estée Lauder TV campaign is on tap for holiday, as is cinema adver- Lock-Around System, which is said to form a pro- Cos. who is responsible for the Tommy Hilfiger Toiletries tising, said Russo. As well, more than 100 million scent- tective shield around skin cells and melanocytes. brand, candidly discussed the Hilfiger beauty license’s ed impressions and upward of 10 million samples also Key ingredients in the products include vita- are planned. min C, said to block the transformation of In the January interview, Bousquet-Cha- melanin production and stimulate cellular re- vanne candidly discussed the brand’s chal- newal; raspberry extract, intended to slow down lenges. “The Tommy Hilfiger Toiletries divi- melanin formation and brighten and tone skin; sion has seen a rocky road over the last few Japanese mandarin, said to reduce and prevent years,” he said, adding that the brand needs surface spots, and grapefruit, intended to pro- “a new energy” to reclaim its old footing in mote exfoliation. department stores. Lauder signed its fra- The Bright Plus lineup comprises Brightening grance license deal with Hilfiger in 1993, and Serum, to reduce dark spots and restore an even while the first masterbrand, 1995’s Tommy, complexion, $55 for 1-oz.; Repairing Brightening was a blockbuster, recent launches have not Night Cream, aimed at brightening skin while achieved the volume of business done by that the customer is sleeping, $55 for 1.7 oz.; initial offering. Hydrating Brightening Lotion SPF 20, a daytime “We believe that aligning the renewed fash- moisturizer, $50 for 1.7 oz., and Target Zone ion strength of Tommy Hilfiger [with Knowles’ Brightening Corrector, a roll-on spot treatment, participation] will result in increased energy $30 for 0.33 oz. for the fragrance franchise. We still own a sub- Lionel De Benetti, director of scientific re- stantial equity in the men’s and women’s fra- search for Clarins, noted that the products will grance world, and this project is our way of begin to show results in anywhere from 15 to 25 reengaging the consumer with a truly global days but that they “must be used every day. It’s fragrance concept,” Bousquet-Chavanne con- exactly like a drug. To be really active, the prod- tinued, as reported. “We believe this is a uct must be used regularly.” groundbreaking moment for this division.” Though Clarins executives declined to com- The stakes are “very big,” Weber acknowl- ment, sources estimated that Bright Plus could edged this past week of True Star’s need to generate as much as $10 million at retail in the succeed. “We have put massive support be- first year and estimated that approximately $3 hind this launch, by our standards and by the million will be spent on advertising and promo- industry’s standards.” tion in the same time frame. As reported, industry sources estimated Bright Plus will be rolled out in Clarins 1,200 that together, all of Hilfiger’s businesses, in- U.S. department and specialty store doors with cluding licensed products and fashion, gener- about one million samples, 20 million billing in- ate upward of $2.2 billion globally, with about serts and an estimated 10 million catalogue $250 million of that produced worldwide by stitch-ins and blow-ins. Print advertising for the Tommy Hilfiger Toiletries division, and Bright Plus will break in September magazines. according to NPD Beauty, the premier indus- The visual, shot by Eric Traoré, features a try tracking group for prestige beauty, the model’s face, with a tag line at the bottom that Hilfiger fragrances did $57.3 million in 2003 in says: Get Even with Your Skin. the U.S, down more than 30 percent from the — Kristin Finn previous year. WWD, FRIDAY, APRIL 30, 2004 7

Chanel Reveals Additions To Color, Scent, Skin Care

By Julie Naughton and Kristin Finn NEW YORK — Chanel unveiled its second-half product launches Monday, outlining a comprehensive gift set pro- gram spanning color cosmetics, skin care and fragrance — as well as several initiatives in color, including a reorgan- Thia Breen ized color display system. and Paul Chanel is apparently hoping to cash in on this season’s Austin apparent uptick in business. Jean Hoehn Zimmerman, exec- utive vice president of marketing and sales for fragrance and beauté for Chanel Inc., noted at the event that the industry is beginning to breathe a sigh of relief — with first-quarter 2004 numbers provided by NPD Beauty indicating an 8.5 percent gain in the total prestige color cosmetics category, a 7.8 percent increase in skin care, a 2.2 percent rise in pres- tige fragrance and a 2.7 percent gain in women’s fragrances. “We’ve probably been more aggressive [lately] than I remember in 19 years of being with the company,” asserted Myra Arie Kopelman, president and chief operating officer of Chanel Bibliowit Inc., who has been leading efforts to promote basic business Sir Elton John, Elizabeth Hurley and Patrick Dan and Libby and new products. Later this fall, as reported, Chanel will Bousquet-Chavanne. Brestle Pataki unveil a No.5 ad campaign featuring Academy Award-winning PHOTOS BY DAN D’ERRICO; ELTON JOHN BY JULIE SKARRATT JOHN BY ELTON DAN D’ERRICO; PHOTOS BY actress Nicole Kidman. “This is something that can really leverage the business for the company, and we’re going to sup- port it accordingly,” noted Kopelman of the campaign. BCRF Gala Raises Record $5.5M As for what’s new, the brand is following its tradition of launching a limited-edition color cosmetics star product NEW YORK — It wasn’t a typical night on the fund-rais- “Rocket Man,” “Tiny Dancer” and “Daniel.” again in August with Lèvres Impression de Chanel, a lip ing circuit, as Sir Elton John turned the Breast Cancer John — along with Estée Lauder spokeswomen color palette that at first resembles an ink pad. The lip col- Research Foundation’s 10th annual gala at the Waldorf- Elizabeth Hurley, Carolyn Murphy and Liya Kebede and ors are actually composed of an anhydrous high-pigment Astoria Monday into a massive sing-along that raised a a raft of other notables, including Libby Pataki and gel that is a cross between lipstick and lip gloss, explained record-breaking $5.5 million for the cause. Michael Bloomberg — were soldiering on in place of Elizabeth Mankin, vice president of beauté marketing for The superstar performed for more than an hour be- the evening’s real star, BCRF founder and Lauder sen- Chanel. Three palettes, each containing three colors, will fore an audience packed into the Grand Ballroom, in- ior corporate vice president Evelyn Lauder, who was retail for $45 apiece. spiring the black-tie crowd to belt out such hits as mourning the death of her mother-in-law, Estée Lauder. We’ve probably been more “aggressive [lately] than I Thierry Mugler Fashions a Superhero of a Scent remember in 19 years of PARIS — Pow! Bam! Wham! accord — either “fiery” or “woody” — found in the juice. being with the company. Thierry Mugler is putting the fun back into fra- In response, the firm received numerous requests for a grance by creating a cast of imaginary comic book char- new scent based on AMen’s woody accord, but in the — Arie Kopelman, Chanel” Inc. acters to populate his olfactive universe. In September, same vein as that fragrance. Thierry Mugler Parfums will introduce BMen, a men’s “We created BMen for AMen customers and [also] Chanel is also offering a new fluid eye shadow that will scent complete with a new hero. The fragrance will be hope to recruit new customers who will be attracted to be a permanent addition. Ombre d’Eau Fluid Iridescent launched internationally. the new fragrance,” said Strubi. Eyeshadow is a biphase liquid containing hydro-soluble The Groupe Clarins-owned brand will introduce the She added there’s no fear BMen will cannibalize polymers. Six colors, each $30, also bow in August. fragrance as a brother to its AMen scent — known as AMen’s consumer base, because people — both men and A third color offering, Double Perfection Creme Poudre Angel Men in the U.S., Canada and the Middle East — women — today require a whole wardrobe of scents. Cream Powder Makeup, will be out in October. A addition to which was launched in 1996. “Today, nobody has just one perfume at home; they Chanel’s foundation lineup, the new product uses biopoly- Like AMen, BMen was inspired by Mugler’s lifelong zap from one to another,” she said. “[People] wear dif- mers to control oily areas and humectants to retain moisture fascination with comic book super- ferent scents for different occasions in drier areas, said Mankin. It will be available in eight heroes, including Superman and the and moods.” shades, each $42. Silver Surfer. As the personalities of the AMen The brand’s color counter displays will be reorganized in Such characters lend themselves and BMen superheroes differ, so, too, July in an initiative called Colour Confidence. Lipsticks will be well to fragrance projects, the com- do their juice characteristics. BMen organized by four color families — Violet/Berry, Rose/Pink, pany executives believe. features notes of sequoia and rhu- Nude/Brown and Red/Coral — and displayed with coordinating “[Superheroes] have no cultural barb, while AMen’s key notes are pat- lip liners. The display also showcases the brand’s nail colors. barriers; everyone can understand chouli and coffee. Gift sets in color cosmetics and skin care in addition to the them,” explained Vera Strubi, presi- BMen’s juice, created by Quest traditional fragrance gift sets will be a key part of second-half dent of Thierry Mugler Parfums International’s Jacques Huclier and selling. In addition to a number of color sets and fragrance sets Worldwide, Wednesday at the interna- Christine Nagel, also includes green, spanning the brand’s many scents, Chanel is building on the tional press launch for BMen held at citrus accords, plus vetiver and dry, skin care category’s health with three skin care gift sets on the top-secret La Grande Soufflerie woody notes. counter in October. They are Chanel Getaways Rejuvenating wind tunnel in Meudon, outside Paris. While Strubi refused to talk num- Skin Care, which includes three Age Delay products and two The site, which is under the auspices bers, industry sources estimate BMen travel containers in a logo bag, $80; a Retexturizing version, of France’s Ministry of Defense, fea- could generate $10 million in global $85, and First Class Skin Care to Go, six skin care stockkeep- tures six enormous fans used for test- wholesale sales during its first year. ing units from the Précision and No.1 collections and a Chanel ing planes and spacecraft. The eau de toilette comes in a new headband in a black logo bag, $200. The otherworldly location provid- iteration of AMen’s flask-shaped bot- As reported, the brand’s key skin care offering for the ed a vivid backdrop to the new Mugler- tle. However, while AMen’s flacon is second half is its new Ultra Correction Serum. Also in skin ian superhero conceived as a counter- silver with a blue glass star, BMen’s care, the brand is unleashing a personalized sampling A comic visual. part to AMen. bottle is khaki with a red glass star. effort which includes 16 of the brand’s top-selling skin While BMen is meant to safeguard the world, AMen is The 100-ml. limited-edition eau de toilette BMen care sku’s; according to Annette Falso, vice president of more of a visionary, a discoverer of new planets. BMen is metal spray with the comic book will retail for $93.20 at new product marketing and training, Chanel fragrance and described as passionate, active and highly communica- current exchange rates, or 78 euros; the 100-ml. metal beauté, the brand plans to disseminate more than five mil- tive, whereas AMen is seen as having inner strength. version will be the same price; the 100-ml. recharge lion skin care samples by yearend. The BMen character was brought to life in a comic will be $68, or 57 euros; the 50-ml. eau de toilette spray For fragrance, Chanel will add products to the iconic No.5 book illustrated by Bertrand Demey (also known as in a rubber bottle will be $50.80, or 42.50 euros; the 200- business and to its Chance lineup, noted Laurie Palma, sen- Beb-deum) and written by Jacques Jouet. Some 20,000 ml. hair-and-body shampoo will be $27.50, or 23 euros, ior vice president of fragrance and Internet marketing. No.5 of these will be given to purchasers of the new scent’s and the 75-gram stick deodorant will be $26.30, or 22 gains the Seduction Collection, which includes a gel-fluid ver- 100-ml. limited-edition version. Strubi noted addition- euros. All prices are for France. sion of the fragrance, $57.50 for 1.7 oz.; as well as a rich al comic book installments featuring the BMen and BMen’s in-store launch will be accompanied by scent- moisturizer and a milk bath, $75 and $65, respectively. A AMen superheroes could also be in the pipeline. ed military tags and also more traditional samples. limited-edition bath oil, $65 for 13.5 oz., will also bow along BMen was developed in response to consumer While an advertising campaign isn’t planned, visuals of with the other products in September. Also in September, demand, said Strubi. She explained that two years ago, the BMen superhero, include a short cartoon movie, will Chanel will add a Chance body cream in two sizes — 6.8 Thierry Mugler Parfums had sent its AMen customers be used in sales points and window displays. ounces for $70 and 3.5 ounces for $40 and a twist-up cylin- two sample-sized vials each containing a main olfactive — Brid Costello der version of Chance, $65, which includes two refills. 8 WWD, FRIDAY, APRIL 30, 2004 The Beauty Report Going Mass, Naturally ‘Idol’ Fragrance By Laura Klepacki Whole Foods Markets, a 155-store natural foods supermarket chain with headquarters in NEW YORK — Natural beauty products are Austin, Tex., holds ongoing events to promote stealthily creeping into the mainstream market. beauty in its stores. Peter Lamas, a celebrity hair- By far, retailers such as The Body Shop, stylist who launched Lamas Beauty International Smells Like a Hit Aveda, Whole Foods, Wild Oats and independent in 2001, a product line that includes hair and skin health food and vitamin stores still account for care, recently gave presentations at several WOODBRIDGE, N.J. — Fans the bulk of sales, estimated at a remarkable $3.9 Whole Foods Stores in Texas. The Ecco Bella cos- started lining up by 11:15 a.m. billion in 2003, up 10.9 percent from the year be- metics brand held a makeover session from 10 for the noon to 2 p.m. appear- fore, according to Packaged Facts, a division of a.m. to 4 p.m. on a recent Saturday at the ance by “American Idol” star MarketResearch.com. However, traditional mass Montclair, N.J., store, while the founder of Savage Kimberly Caldwell at the J.C. market retailers — supermarkets, drugstores Beauty, Jane Schub, has been offering product Penney fragrance counter here. and discounters — now account for a healthy 20 demonstrations at the new Columbus Circle store Caldwell, the 21-year-old percent of revenues. in the Time Warner Center here. spokeswoman for the “American And with the U.S. natural beauty products Allyn Jones, North Atlantic regional director Idol” fragrances marketed by market predicted to climb to $5.8 billion by 2008, for the Whole Body Department at Whole Foods, Beauty Innovations, has already traditional mass retailers are expected to repre- noted that customer service and education is a held signings at Penney’s coun- sent a larger share of the priority. There is typical- ters in Los Angeles, Miami and pie as more brands with a ly a body care specialist Houston, and will hit some 25 natural orientation make and vitamin specialist stores in major markets before their way onto those available in all of its the spring tour ends in Las “American Idol” finalist Kimberly shelves. In 2003, skin care stores. Sales of its beauty Vegas in May. was the largest segment products have climbed Timothy McCarthy, store Caldwell. at $2.6 billion, followed by double digits for two manager for the Woodbridge hair care at $936 million years and Jones antici- unit, said the event was draw- and cosmetics with sales pates that trend to con- ing a bigger crowd than expect- of $314 million. tinue. “We absolutely ex- ed, as he watched lines form on Don Montouri, re- pect to see an increase in either side of the stage, which PHOTO BY GEORGE MAYO HENSON 2ND GEORGE MAYO PHOTO BY search editor at retail sales [of beauty was situated in the middle of Packaged Facts, noted products] again this Penney’s first-floor fragrance that one of the reasons year” — at least in the 10 department. the firm undertook a percent range, she said. When all was tallied, some study on natural beauty “We have been working 500 people had lined up and THOMAS IANNACCONE PHOTOS BY products is that it had re- to really try to increase spent some $2,700 on “American Penney’s buyer Alyson Honeycutt ceived several inquiries the visual look of our de- Idol” fragrance items during the and Louise Caldwell of Beauty from leading consumer partment and get the mes- April 9 event. Innovations. products companies such sage out to our customers It’s been a long time since as Procter & Gamble and about what makes our there was a celebrity appearance in this Penney’s beauty de- L’ O r éal on the topic. products different from partment, noted McCarthy. “It was probably seven or eight years For now, the market the mass market,” said ago.” Priscilla Presley, Iman and Ivana Trump all have made remains dominated by Jones. “We want to touch stops here at one time to promote their respective fragrances smaller companies, with base with the customers and cosmetics. “The Iman launch drew well over 1,000 people, brands like Kiss My Face, who are already there be- and for Priscilla, we had about five or six Elvis impersonators Burt’s Bees and Jason cause they want to eat show up in the crowd,” he recalled. being some of the first to well. Why not put good Even Penney’s corporate fragrance buyer, Alyson Honeycutt, elbow their way onto products on the body?” flew in from Dallas. “We are getting a tremendous reaction to drugstore, discounter and Peter Lamas demonstrates his products at Whole Jones sees Whole Kimberly. She is very enthusiastic,” said Honeycutt. When supermarket shelves. Foods in Dallas. Foods in competition launched at the end of January, the “American Idol” fragrances CVS, for one, has recently with mass stores for body immediately ranked among Penney’s top 10 scents, she noted. created a Natural Beauty care sales and at a disad- “They have consistently continued to sell. We go through quite Care section in some of We absolutely expect to vantage, because they a number of units.” For the year, Honeycutt believes sales of its more developed beau- “ “have lots of money in the scents at Penney’s could reach $5 million. ty departments. The drug- see an increase in retail advertising.” Looking ahead, there will be promotional cosmetics for the store chain, along with Of course, there is a back-to-school period and gift sets for holiday. Target, is also testing a sales [of beauty products] quandry over what con- Watching the blossoming crowd as Caldwell signed auto- section of Boots U.K. stitutes a “natural” or graphs and posed for photos, Honeycutt remarked, “This is what brands that includes again this year. “organic” beauty prod- cosmetics used to be. It gives my stores a great sense of pride and Botanics, a cosmetics and ” uct. Without regulated it provides them an opportunity for teamwork and a fun day.” skin care collection based — Allyn Jones, Whole Foods standards, marketers Honeycutt said Penney’s is trying to do more events with on plant extracts. tend to apply the “natu- other brands. “This one just naturally lends itself to it.” Loblaws, the Canadian supermarket, is trying the ral” designation if an item contains natural in- Caldwell, who was a finalist in the second installment of Aubrey Organics brand, which currently is a mar- gredients. Organic typically refers to products “American Idol,” ultimately won by Ruben Studdard, will re- ketshare leader in natural and health food stores. that use ingredients grown without pesticides, lease her first CD later this year. “It is being produced by And these efforts could be just the beginning. artificial preservatives and colors, and are fra- Diane Warren and Randy Jackson,” she told WWD, taking a Packaged Facts predicts natural grooming sec- grance-free. Only in California are there regula- brief break from her fans. tions are “poised to spread like tions for the labeling of organic beauty products. Caldwell did not sing at Penney’s, but encouraged her fans wildfire” in America’s supermar- Aubrey Hampton, president of Aubrey to. Ginamarie Dieckmann, 9, of Staten Island, N.Y., who said kets, chain drugstores and mass Organics, has taken to applying FDA guidelines she had voted for Caldwell, was one of many who took up the merchandisers. enacted last year for organic food products to microphone with ease. Ginamarie’s mother, Joann, bought a Early adopters have been the label his company’s beauty items. bottle of the fragrance but wasn’t sure if her daughter would be specialty food chain Trader Regardless of the loose oversight, there has wearing it. “We may give it as a gift,” said Joann Dieckmann. Joe’s of Los Angeles, which been a groundswell of interest in linking health, There were three points of sale for the fragrances in the even possesses private label wellness and beauty in the marketplace. Penney’s department so that no one had to wait in a long line natural beauty brands, and Already drugstore chains have been mapping to pay. There were two access routes to Caldwell, a VIP line for Rochester, N.Y.-based Weg- a return to their roots as purveyors of healthful those who purchased a fragrance and a line for nonbuyers. mans, which merchandises products to more broadly include beauty. At last The VIP line moved faster. natural beauty products week’s National Association of Chain Drug Louise Caldwell (no relation to Kimberly), director of market- within its Nature’s Market- Stores annual meeting in Scottsdale, Ariz., Rite ing for Beauty Innovations, said the crowd at Woodbridge Mall place section. Aid chief executive Mary Sammons remarked, has been the best so far “in terms of purchasing the fragrance.” “People are starting to connect looking good and McCarthy said the store boasts Penney’s strongest beauty de- Aubrey Organics products. feeling good.” The drugstore industry, she added, partment in New Jersey, with fragrance sales of $300 a square “must place a larger focus on helping people foot. Because of its centralized location, it draws shoppers from take care of their health.” New Jersey suburbs as well as New Yorkers looking to save on Bernadette Haley, publisher of Organic sales tax. Unlike New York, New Jersey does not tax clothing. Style magazine, noted that the magazine has The “American Idol” scents — Idol Spirit for Men and Idol started “wellness” tours that link beauty and Moments for Women — are priced at $24.50 for a 3.4-oz. eau de wellness concepts in malls. Corporate sponsors toilette. Ancillaries include a men’s deodorant for $6 and have included Aveda and Clairol’s Natural men’s and women’s fragrance gift sets for $35. Instincts. With interest rising in organic prod- In addition to Penney’s, some other retailers have begun ucts and lifestyles, Haley noted that the maga- carrying the scents, including Kohl’s and CVS. zine has increased its frequency this year from — L.K.

PHOTOS BY GEORGE CHINSEE PHOTOS BY six issues to 10. WWD, FRIDAY, APRIL 30, 2004 9

Bare Escentuals Adds NYC Revlon Loss Widens NEW YORK — The newest beauty boutique to By Ross Tucker enter the crowded Manhattan market has an edge — a built-in audience. NEW YORK — Despite showing signs of progress in its cam- Bare Escentuals officially opens its 19th bou- paign to pare its massive debt, Revlon Inc. remained mired tique, its first in New York, today at 1140 Third in the red for the first quarter. Avenue. Although new to the Big Apple, millions For the three months ended March 31, the beleaguered of women have been introduced to the Bare beauty giant saw losses expand to $58.2 million, or 63 cents a Escentuals line via QVC, infomercials and other diluted share, compared with a loss of $48.7 million, or 91 outlets. cents a share, in the same period a year ago. The bottom In fact, Bare Escentuals’ president and chief line was impacted by a $32.6 million charge relating to the executive officer Leslie Blodgett will co-host a company’s early retirement of debt during the quarter. client’s party tonight with QVC’s on-air personali- Jack Stahl, president and chief executive officer, was up- ty Lisa Robertson, and women from all over the beat about the company’s progress. “We’re delighted with this East Coast are expected to attend. first step that we have completed in terms of the debt-for-eq- Bare Escentuals is the number one beauty uity exchange,” he said during the company conference call. brand on QVC, outranking Urban Decay, The 700-square-foot space features wooden flooring and Handling debt continues to be a prominent issue. On Philosophy, Prescriptives and Bourjois. According white cabinetry. Wednesday, the company announced plans to sell approxi- to Blodgett, Bare Escentuals sold more than $12 mately $400 million of senior unsecured notes due in 2011 million worth of product on one day alone on QVC national makeup artist Bravon Pascua demon- to private institutional investors as part of its debt refi- last December. She said she receives 1,500 e-mails strated how to use a wet/dry brush to create a foil nancing. Additionally, the company expects to execute an a day from devoted fans. look for eyes. amended and restated credit facility, which should provide The 700-square-foot Manhattan store is expect- The top sellers, such as brushes, foundations, a credit line of approximately $680 million, replacing its ed to produce sales of $2 million in its first year, lip colors and eye shadows, are near the front of extant credit facility. according to industry estimates. The company the store. There are value-oriented gift sets or Sales, led by growth in the Asian and Latin American hopes to have three to four more New York City customers can create their own. markets, tracked up 5.6 percent to $308.4 million from $292 stores within the next few years. Three other There will be complimentary champagne and million. International sales jumped 18 percent to $102 mil- units will open in 2004, including one on Long tea served daily and Sunday brunch. To fit the lion. However, the weakness of the U.S. dollar worked to the Island, one in Charlotte, N.C., and one in a hectic New York lifestyle, there will be free deliv- benefit of results. Excluding the benefits of currency trans- Chicago suburb. ery within a 10-block radius. lation international sales grew approximately 4 percent. Don’t assume New Bare Escentuals hopes to The Asian and Pacific markets in particular continue to Yorkers are above tuning in borrow a tactic from nearby show strength, a sentiment heard earlier in week when to the tube for beauty. “The Critical Mass Dylan’s Candy Bar and offer Estée Lauder reported third-quarter results. “Increasingly, I products always sell out on its space for Sweet 16 par- think international will be an important driver for our busi- TV. It will be great to have a By Faye Brookman ties or bachelorette soirees. ness as we go forward,” said Stahl. store nearby,” said Susan According to Blodgett, the North American sales improved marginally to $206 mil- Eba, a Queens resident who store doesn’t target any par- lion from $205 million. has been hooked on the Bare Escentuals ticular age group. There are products for antiag- According to data from ACNielsen, the company’s total BareMinerals makeup. ing and products for acne. “Many of our shoppers market share during the quarter was 22.4 percent, down 0.7 BareMinerals is expected to be among the are tired of the alternatives,” she explained. share points. The Revlon brand market share remained es- bestsellers, according to Vicki Parotino, retail Pricing ranges from $12 for eye shadow to $20 for sentially flat at 17 percent, from 17.1 percent. sales manager. Customers coming into the store foundations in makeup, and $12 to $36 for body The company’s Almay brand was down 0.5 share points to during the first week of a soft opening were also care. The body care stretches from massage oils to 5.4 percent. The decline, said Stahl, was attributable to a familiar with the products, which include i.d. a faux tanning product. Hands down, loss of retail space with one of its major customers. BareMineral Cosmetics, bath and body lines and BareMinerals is the leading product, ringing up According to management, the company will regain its MD Formulations skin care. In addition to expo- 70 percent of Bare Escentuals’ sales. Celebrity Almay retail space from that customer in May. sure on QVC, Bare Escentuals has also been fans include Alicia Keys, Cameron Diaz and Drew Management also pointed out on the call that market among the top-selling brands at Sephora.com and Barrymore, according to Blodgett. share figures from Nielsen exclude data from Wal-Mart and Ulta stores. Bare Escentuals was founded in 1976 as a min- other regional mass retailers. Nielsen data, said the compa- Opening in Manhattan has been a dream of eral and luxury bath and beauty company. ny, represents approximately 70 percent of the company’s Blodgett’s for several years. A New Yorker, Blodgett joined the company 10 years ago after U.S. mass market volume. Blodgett sought out a neighborhood feel for the positions with beauty companies including Selling, general and administrative expenses declined first New York store. The store has an ambience Neutrogena and Max Factor, and oversaw the ac- 740 basis points to 55.7 percent of sales, or $171.9 million. different from the others, which are mostly in quisition of MD Formulations. Under her tutelage, Comparatively, SG&A expenses came in at 63.1 percent of shopping centers. A warm wood floor is set off by sales have shot up from $6 million to more than sales, or $184.2 million, in the year-ago period. white cabinetry. There is a table in the center for $200 million per year. Stahl drew further confidence from the success of the customers to experiment with the products, a new Blodgett is known for developing close ties company’s initial efforts to shed its sizeable debt load. wrinkle for this store. with customers — even naming products after During the quarter long-term debt fell 41 percent to $1.1 bil- Two makeup artists are on hand at all times them. “I think everyone should wear makeup and lion from $1.87 billion. for instructions on the products. On a recent visit make the best of what they have,” she said. Redken Serious About Guys, Sets Launch of Men’s Line NEW YORK — As men become increasingly brand currently generates roughly $200 million concerned about their looks, Redken is hop- in wholesale sales. Redken for Men is expected ing to capitalize on their vanity. to reach as many as 15,000 salons in the U.S. Redken for Men, a 15-item hair care, pro- by mid-May. The items are seen trickling into fessional color and styling aids range is set to Redken’s international markets by yearend. launch in salons next month. “The timing is Craggs projected that, “Within a year, Redken for completely right in terms of the evolution of Men will account for 15 percent of total sales.” the male market,” David Craggs, president of While men’s introductions at U.S. salons L’Oréal USA’s Professional Products Division, in recent years have included hair care and said during a launch event for Redken for styling entries by American Crew and hair Men at Cutler Salon last week. color by MiN Men’s Color Match, Redken ex- “The average guy spends 24 minutes a day ecutives argue that a salon line has not com- on grooming and uses five to seven products,” prehensively addressed hair care, styling and noted David Stanko, Redken’s senior director professional hair color for men. Even Matrix, of technical development for hair color, citing Redken’s sister brand, which is L’Oréal Redken for Men hair care items and styling aids. a Gallup study last year. He added that 50 per- Professional’s biggest hair care brand, does cent of men think their hair is the most impor- not market a line specifically targeting men. Redken research says are lost throughout the aging. Even the products’ aroma, a blend of ac- tant aspect of their appearance. “Currently, there’s not a lot of activity for male day. The demi-permanent shades in the color cords including citrus, is meant to be masculine. “The men’s grooming market is a $14 bil- hair and [we want] to fill that gap,” Craggs range, which is called Color Camo, are de- An advertising campaign for Redken for Men is lion industry worldwide,” Stanko said, point- said. “We’re in a good place at a good time.” signed to work in 10 minutes and gradually slated to break in July issues of Details, Cargo, GQ, ing to Euromonitor data. The sector, he con- Redken for Men includes three shampoos, a fade from the hair over a period of time. They’re Interview, Maxim, Rolling Stone and Men’s Health. tended, is expected to grow 27 percent dur- conditioner, four styling aids and a cleansing designed to blend out gray or, as Stanko put it, “Now is the time,” said Cutler Salon owner Rodney ing the three-year period ending next year. bar for retail sale as well as a range of six pro- add “more pepper to salt-and-pepper hair.” Cutler, who is also Redken’s editorial spokesman. While Redken does not disclose sales figures, fessional color shades. Products are designed Targeting urban males between the ages of 25 “It’s a huge opportunity for our business.” industry sources estimated the L’Oréal-owned to replenish proteins and carbohydrates that and 50, Redken for Men comes in gunmetal pack- — Matthew W. Evans BARE ESCENTUALS PHOTO BY KYLE ERICKSEN; REDKEN PHOTO BY GEORGE CHINSEE ERICKSEN; REDKEN PHOTO BY KYLE PHOTO BY BARE ESCENTUALS 10 WWD, FRIDAY, APRIL 30, 2004 The HBA Report Mass Shampoo Goes Hollywood

By Andrea Nagel as 22,000 drugstores this month after a successful test at select CVS stores around the country. Ken Paves’ Flawless line began selling exclusively at 4,500 Walgreens stores in NEW YORK — A new guard of celebrity hair care lines is looking to pull sales of shampoo, February and, according to industry sources, expects to generate more than $5 million in conditioner and styling products out of their recent slump. And many think America’s sales by the end of the year. obsession with celebrities will fuel sales early on. According to Alec Batis, director of marketing for Flawless, the professional trend in “We are, as Americans, voyeurs and certainly celebrity seekers,” said Rick Goldberg, hair care is similar to what color cosmetics experienced in the mid-Nineties when a flux founder of Progressive Beauty Brands, the Minneapolis-based beauty company that of professional makeup artist lines entered the market. makes the new Hilary Duff hair care line. “I think that’s evident in that People [magazine] Besides, he added, the hair industry is coming full circle. just celebrated 30 years in business. It’s a result of the media being so instantaneous in “Years ago, celebrity stylists like Vidal Sassoon and Jheri Redding were considered getting us an insider look at what these people do and how they live.” the foremost experts in hair care and were looked to for advice on how to achieve and Goldberg, and many manufacturers like him, regard the 3 percent dip in mass shampoo, maintain the most healthy and well-styled coifs,” Batis said. conditioner and styling products sales for the 52 weeks ended March 6, according to But during the past 15 years, Batis explained, their success became overshadowed by beauty Information Resources Inc., excluding Wal-Mart, as an excuse to look beyond corporations with big ad budgets featuring glamorous, retouched models and celebrities with national brands as an answer to sluggish sales. unnaturally shiny hair. Now consumers are becoming savvy Brigitte King, assistant vice president of enough to know that such results are unlikely, he said, and marketing for John Frieda, perhaps the that the true experts of product performance are the celebrity best-known celebrity hairstylist line, hairstylists who use these products. agrees. “Our whole society is obsessed with “Many of the large corporations are observing this and what [celebrities] are doing,” she said. are hiring big-name hairstylists to help lend credibility to While John Frieda generates more than their brand,” Batis said. Giselle, a well-known $150 million in U.S. retail sales, according to colorist from the Pierre Michel salon on 57th industry sources, no fewer than 10 celebrity Street here, for example, is a spokesperson hair care lines have emerged on mass retail for Clairol’s home hair coloring kits. shelves over the past several years. Some The consensus among brand executives are from actors such as Duff and Connie with celebrity lines is that, with recent Selleca, who sell hair care products at industry reports showing decreased hair care Target and drugstores nationwide, sales despite Unilever and L’Oréal launching respectively. Sports figures are expected to multimillion dollar campaigns last year, it’s get into the game, too. Industry sources said more important that companies look for ways a men’s hair care line by Michael Jordan is to stimulate growth in the category with being pitched to mass stores now. products that don’t look mass. Most notably, a fresh batch of celebrity Allan Peters, managing director of Charles hairstylists has entered the mass hair care Worthington London, said employing an arena. Cristophe, Marc Anthony and Ken expert or designer positioning, rather than Paves, for example, may not be household one that’s celebrity focused, is key to Charles names, but all have garnered a loyal fan base Worthington’s success. through coverage in beauty magazines. “Having a real figurehead such as Charles, A key trend for many of these new lines who is genuinely involved in all aspects from is partnering with a specific retail chain for design to product development right through their initial entry into the mass market. The to public relations, certainly creates brand deal, it seems, brings retailers exclusivity differentiation and definitely accelerates and a point of difference from competitors, Cristophe Beverly Hills is the newest celebrity hair care line. awareness,” Peters said. while celebrities enjoy shelf space in as many But while celebrity brands may attract as 4,000 doors at launch time. attention based on newness, repeat purchases are based on a variety of factors, such as price, Cristophe’s hair care line, Cristophe Beverly Hills, is the newest to enter the market. product benefits, quality and packaging. These reasons are why product makers are quick to Set to launch exclusively in CVS’ top 10 markets in May, sources estimate it could reach add that not all celebrity lines are created equal. between $4 million and $6 million for 2004. John Frieda, for example, prides itself on being a brand that is built on the expertise of The 13-item line aims to capture the hair maven’s flavor for fashion, and will offer many hair experts. Sally Hershberger, for example, inspired and helped create Frieda’s Sheer three different platforms, Thick & Full, Smooth & Shining and Hydrating, complete with Blonde range. Hairstylist Oscar James contributes to the John Frieda Relax line of products. shampoo, conditioner and styling products. The brand’s slogan is “Beautiful Hair for a Richard Marin lends his expertise to Frieda’s most recent launch, Brilliant Brunette. More Beautiful You.” Whether consumers buy into the new host of celebrity ranges remains to be seen, but “It’s not for the shopper looking for a $1.99 deal of the week,” said Goldberg, whose at least one manufacturer is confident that a combination of good product and fame could company is making the line. “This is built on taste and is for people looking for value with lead to success. an exquisite positioning.” Retail prices range from $6.99 to $7.99, higher than Pantene “I think that the power of celebrity remains a strong sales driver,” said Peters. and Herbal Essences, hair care’s two leading brands. “Whether from celebrity endorsement, or as a reputable expert behind a brand, the Canadian Marc Anthony has his Marc Anthony True Professional line arriving in as many power of that credibility cannot be underestimated.”

Frédéric Fekkai leading his Fekkai to Begin Seminar Biz first educational seminar. NEW YORK — Frédéric Fekkai’s first educational seminar, which took place this week, may just be the first of many, due to overwhelming response. Fekkai said “Hair & Beyond: The Academy Frédéric Fekkai” is being considered this fall for the West Coast as the two-day event, held Sunday at the W Hotel on Lexington Avenue and Monday at the Frédéric Fekkai salon on 57th Street, was sold out both days, despite $500 and $1,500 ticket prices. More than 250 salon owners and stylists attended Sunday’s event-filled program, which ran from 9 a.m.-6:45 p.m. for $500 a pop, and included presentations by Fekkai and several members of his cre- ative and executive team, as well as color and cut demonstrations. The following day’s hands-on sessions, which cost $1,500, was originally slated for 24 people but was extended to accommodate 30, and as many as 30 people were turned away. “It is interesting because I have always been reluctant to do this because I thought there would not be a market for it. People go to free classes and much more discounted programs, but the timing was right for me. Or maybe it was just luck,” Fekkai said. Or, maybe Fekkai’s success in operating multimillion dollar salons has built up his credibility. Frédéric Fekkai & Co. generated approximately $36 million in 2003, according to industry sources. There are two Fekkai salons, one in Manhattan and one in Beverly Hills, Calif. A third is slated to open next month in Palm Beach, Fla. About one-third of business is generated from sales of an extensive hair care and body care line sold at stores across the country, as well as in the U.K. Chanel entered into a joint venture with Fekkai in 1996 and, though it has never been disclosed how much of Fekkai Chanel owns, Fekkai remains the core decision maker for the company. He also is taking a more hands-on role in running the business. Lori Perella, former general man- ager and Fekkai employee for almost five years, left the company earlier this month. Fekkai, now president and chief executive officer, will assume her responsibilities, which include running the day-to-day business and meeting with retailers. John Hetherington, formerly of L’Oréal’s luxury fra- grances division, has joined Fekkai as chief financial officer, a role Perella handled. — A.N. WWD, FRIDAY, APRIL 30, 2004 11

Media/Advertising MEMO PAD Finley: Smooth Operator NYLON UPDATE: Annemarie Iverson is By Rosemary Feitelberg at the same time. They were really so upset. They had angling for more than just an editing job at no assistants. That gave me the idea to start a clearing- Nylon magazine. According to sources, the NEW YORK — There’s no getting around Ruth Finley, house for fashion to try to avoid any conflicts.” former YM editor is attempting to line up but meeting halfway is always an option. Early on, she and her roommate, Gladys Hoover, backing that would allow her to buy a stake In an industry where tardiness borders on the ha- who worked for Finley for two years, rented a fur- in the struggling downtown fashion title. bitual, she does everything she can to strive for order, nished, but bedbug-infested apartment across the Any such deal would also involve her if not punctuality. As founder and president of the street from the 21 Club for $55 a month. Knowing becoming editor in chief, with Nylon Fashion Calendar, the octogenarian has tirelessly their service would be a tough sell since it wasn’t tan- founder Marvin Scott Jarrett stepping aside, Annemarie scheduled — and all too often rescheduled — fashion gible, they moonlighted as ushers in the theater. Their according to a source familiar with Iverson shows, store openings and parties for six decades. days were devoted to peddling the Fashion Calendar Iverson’s plans. Iverson’s husband, Alberto She is showing no signs of letting up, even though 200 and having a mom-and-pop print shop mimeograph Finali, a former managing director of Lehman Brothers’ merchant phone conversations are par for the course for one copies of it. One of the shop’s typists, Doris Roberts, is banking group, is said to be helping to raise funds. Reached by fashion week edition of the calendar. now an actress on “Everybody Loves Raymond.” phone, Iverson declined comment, but Nylon chief financial officer Finley is equally tenacious about Citymeals-on- In the late Fifties, Eleanor Lambert established Larry Rosenblum confirmed the two sides have held discussions Wheels, a group for which she has helped raise $2.5 “Press Week,” salon-like fashion shows at the Pierre, about a range of possibilities short of an outright sale. “It could go a million during the past 20 years. The organization, the Plaza and other hotels, and Finley’s Fashion dozen different ways, but it’s too soon to say what those might be,” which delivers meals to homebound seniors, will Calendar got a major lift. By 1959, her job became he said. “You’re always in search of new financing.” — Jeff Bercovici honor her Monday night at Metrazur in Grand more of a necessity, after her husband died of a heart Central Terminal. More than 350 people are expected attack, leaving her with three sons who were age seven INSIDE INTEL: Let’s be clear about this: Jared Paul Stern, who is now to raise a glass to Finley, who has been instrumental and younger. At that time, she was working out of a one- contributing to New York Magazine, doesn’t get a byline. Spencer in raising $150,000 for this year’s effort. room office in her Upper East Side town house, joining Morgan, who is no longer a contributor, does. Dressed in a navy Bill Blass knit outfit, Finley her sons for their lunch break. “I was determined to It’s just another week at New York, where new editor in chief broke away from the stacks of give them a normal life and to Adam Moss is beginning to make his presence felt. The most boxes and gift bags overtaking Ruth Finley give them as much of my time noticeable changes so far have been in “Intelligencer,” the front- her Upper East Side office as I could. My children always of-book news section that includes a gossip column of the same Thursday to reminisce about came first. I never went to func- name. Deborah Schoeneman, formerly the column’s number two her long run on Seventh tions in the evenings or on writer, took over as lead writer in September and in recent weeks Avenue. But pending assign- weekends. To me, it was more there’s been a marked shift in the column’s tone, away from

ments were never far from her PHOTO JOHN BY AQUINO important to be with them and tabloid-style wordplay and bitchy editorializing toward a more mind, and mentions of last- to do things together.” straightforward newspaper style. Moreover, “Intelligencer” has minute touches for Monday’s By the early Sixties, the been devoting less space to starlets and celebutantes and more to event and the unfortunate Fashion Calendar was clicking figures from the worlds of business, politics and the media. timing of this fall’s 7th on and designers — not just buy- Schoeneman confirmed the changes Sixth fashion shows sprinkled ers and press people — were come at Moss’ direction. “We’re trying to her conversation. (The calling Finley directly. Oscar emphasize more New York power people September edition falls two de la Renta, Halston, Diane than celebrities,” she said. “We want to days after Labor Day and in- von Furstenberg, Calvin Klein get away from what the other gossip cludes Sept. 11 and the first and Gerry Silverman are columnists are doing.” day of Rosh Hashanah.) among the designers she knew There have been cosmetic changes, too Even though 40 designers way back when. In fact, 30- —most notably, the moving of have tentative show dates, no plus years ago, Bonwit Teller’s Schoeneman’s byline from the top to the one has yet committed to former president, Mildred bottom of the column. Schoeneman Sept. 11. Another unpopular Custin, tipped Finley off “to downplayed the significance of the byline date is Sept. 15, since the come on over right away” to bump, but a source close to the magazine Jewish holiday starts at sun- check out Klein’s collection. said she was “furious” when it happened — down. On top of that, Finley is In the early Sixties, de la not least because gossips rely on visibility to Jared Paul Stern concerned about how much designers will have Renta phoned Finley “almost in tears,” due to a sched- get unsolicited tips. “To the extent that ready and delivered in August, a typically sleepy uling conflict with Bill Blass. He said, “Ruth, you’ve got people need to know who to call, it’s destructive,” said the source. month for production. to help me. I’m in such a terrible situation. I want to do Against this backdrop, the recent addition of Stern as a freelance “The big problem is whether they will have enough my show in a theater on Broadway and this is the only contributor has many wondering whether Moss might be merchandise in to show. I’m a little worried about time I can get. Can you talk to him?” Sure enough, she orchestrating an “Intelligencer” handoff. Stern, who’s also showing immediately after Labor Day,” she admitted. did and found a time that worked out for both. “And my freelancing as an editor at large for Star and editing the New York Hopefully, things won’t get as complicated as they sad designer was happy,” Finley said. Post’s books section, said he’s not looking for a full-time gig. “I like did in February, when Calvin Klein decided with Over the years, no designer has been too big or too wearing different hats, so to speak.” only a few days’ notice to move its show from a small for Finley to lend an ear. She also has been As for Morgan, who had been contributing to the column since Tuesday to Thursday, at the same time as James known to field cell phone calls from forgetful editors in February on a freelance basis, he is credited in this week’s issue, Coviello. “That was one of the worst things. They’re speeding taxis in search of their destinations. Finley is even though he hasn’t written for New York since early April; still talking about it because it hurt so many people. less tolerant of party and show crashers, though. Schoeneman said there was a production snafu. Stern, meanwhile, The way it was done was completely wrong — to tell Her favorites labels include Blass, Adolfo, Chanel pitched in reporting for last week’s items on Michael Eisner and us after they did it. Obviously, they knew a day or two and Pauline Trigère, from whom she bought her first Narciso Rodriguez but got no credit. He said he doesn’t mind. “I before…It was a big money loss for the designers who wholesale dress, a green cotton number she wishes she don’t tell them what to do about their bylines.” — J.B. didn’t get good attendance because of it.” still had. “I did meet Chanel years ago in Paris. She in- All in all, Finley manages to sort things out and sisted that I had to have something of hers. She set me CINEASTE SMACKDOWN: The critics critique the movies, but who chalks up her orderliness to having “a very organized up with two outfits. She was a very small person; we critiques the critics? At The New Yorker, the answer appears to be: mind. Many people have said, ‘How is it you don’t were about the same size actually. She was very nerv- each other. In his March 1 review of “The Passion of the Christ,” have any competition?’ It’s because of the fact I keep ous, sort of high-strung, wound-up. Basically, if she liked New Yorker writer David Denby pronounced the film “a sickening it personal. If anything, I worry about it. I will call you — she had strong likes and dislikes — that was death trip” and a “dose of death-haunted religious fanaticism.” the person and say, ‘I am worried about this. What if great. She was fascinated with the Fashion Calendar.” Fast-forward to this week, when Anthony Lane, the snarkier half of we try to do it another way?’” Few in the fashion industry have Finley’s unlikely the highbrow weekly’s reviewing duo, took time out from his write- Unlike most of her generation, Finley plotted her combination of guile and warmth. She was the first per- up of “Monty Python’s Life of Brian” to deliver what seemed to be career path early on. “When I went to school, no one son von Furstenberg called after Diana Vreeland enthu- his response. “To complain that ‘The Passion of the Christ’ is went to work. My mother never quite accepted it. siastically flipped through her first collection in Vogue’s possessed by death makes no sense, because Christianity itself Women went to college, got married and had chil- offices and then left the designer sitting there. makes no sense without the shroud of death,” he writes. By the dren,” she said. “When I was 11 years old, I told my Following Finley’s advice, von Furstenberg booked a decorous standards of The New Yorker, them’s fighting words. father, ‘I’m going to go to a college where they send room at the Gotham Hotel, (where the Peninsula now is) Lane, who lives in London, couldn’t be reached for comment. you off to work.’ He said, ‘That sounds really great, for people to see the line and that started her career. Denby, who lives in New York, said he’s not certain Lane’s words but don’t tell your mother yet.’” “Every time I see Diane she mentions it. She has never were meant for him. “I couldn’t make out from that whether it was At Simmons, not far from her hometown of Haverill, forgotten I helped her when she was starting out.” meant as an answer to my review. I wasn’t complaining about the Mass., Finley majored in journalism and minored in For a while, Halston called Finley three or four death. I was complaining about the way the death was represented. food and nutrition, and freelanced at the Boston times a week for her input about his various ideas. It’s the kind of religious expression that makes people frightened Herald. Two summers in college were spent writing for Trigère became a close friend and fellow Citymeals- and angry.” the Herald Tribune’s food pages, which meant toiling on-Wheels honoree and supporter. Finley also saw to David Remnick, The New Yorker’s editor in chief, also questioned in the paper’s test kitchen. There, she befriended fash- it that John Pomerantz, Betsey Johnson and Liz the connection — “I think it’s probably more likely that Anthony is ion editor Eugenia Sheppard, who would later become Tilberis were toasted by Citymeals-on-Wheels, but responding to his own sense of the film and to criticism and the godmother of her youngest son. more importantly they got involved. comment in general” — but added that if his writers want to take The root of her fashion worries began over tea in a As for herself, she said she enjoys going back to aim at each other, they’re free to do so. “I would never ask a critic to Park Avenue apartment with family friends in the late work after a vacation and never wakes up wishing hold fire in whatever direction.” Forties. Fresh out of Simmons, Finley caught up with she didn’t have to go to work. Denby, for his part, sounds like he might welcome an old- two women who were working as fashion writers. “I love working with people. I know they need me fashioned critics feud. “I’m all in favor of disagreement. I think “They talked about how the following Thursday and it’s a lovely feeling to be needed. I enjoy working movie criticism has gotten much too genteel. When I was starting Bergdorf Goodman and Saks Fifth Avenue were having on problems and trying to figure out answers. I plan out in the Seventies everybody was constantly at each other’s events at 11 a.m., and how could they be in two places to work at least 20 more years.” throats, and I think that’s healthy.” — J.B. 12 WWD, FRIDAY, APRIL 30, 2004 Congress Urged to Pass AGOA Bill Industry Execs Meet Snow

By Joanna Ramey long transit times from Africa moved on Jan. 1 for World Trade will force orders to Asia or other Organization members, Levinson To Bash Bush on China WASHINGTON — Officials from non-African sourcing regions,” testified, reiterating UNITE’s call Gap, The Limited and VF Corp. Jill Kiley, import compliance to extend the quota phaseout. By Kristi Ellis told a House panel Thursday that manager with Gap Inc., told the Several African apparel asso- if Congress doesn’t act quickly to House subcommittee on trade. ciations, part of a larger global WASHINGTON — U.S. Treasury extend special duty breaks for the Apparel shipments from the coalition of domestic garment Secretary John Snow, a day after poorest countries in sub-Saharan AGOA region to the U.S. account- and textile manufacturers, in- the Bush administration rejected Africa, U.S. apparel orders to fac- ed for $1 billion in wholesale cluding some in the U.S., are the AFL-CIO’s petition challeng- tories in the region may dry up. trade last year. Of the 38 sub- urging a three-year extension of ing China’s labor laws, sought to The African Growth and Op- Saharan countries, 19 have quali- market-protecting quotas. allay the anger of manufacturers portunity Act, which passed in fied for U.S. duty-free breaks on Apparel importers also are and rejected a planned move by 2000, granted apparel makers in apparel, and all but two — South looking for additions to be made businesses to file a separate the region’s poorest countries ac- Africa and Mauritius — are al- to AGOA 3 to clarify various pro- complaint about China’s curren- STEPHEN JAFFE/GETTY IMAGES PHOTO BY cess to duty- and quota-free im- lowed to use third-country fabric. visions of the original bill they cy policies. port privileges for garments of Supporters of the extension say have put a damper on African Snow met at the Treasury De- fabrics made anywhere in the said it’s needed because Africa garment exports to the U.S. partment with textile, paper and world, not just in the U.S. or hasn’t attracted sufficient invest- They said problems have aris- steel industry executives. He said Africa. That provision is set to ex- ment to build a solid textile in- en from U.S. Customs’ interpre- at a press conference on Wednes- pire in September, unless the im- dustry. The construction of a fab- tations of the original law. For day that China is making progress pending AGOA 3 bill passes. The ric mill is a much more capital- example, the agency ruled knit toward changing its policies so bill would extend the third-coun- and technology-intensive process collar and cuff components from that its currency is not underval- Treasury Secretary John Snow met try fabric program through 2007. than building an apparel factory. third countries can’t be used by ued, which undercuts the prices The AGOA 3 bill, which is the “Uncertainty in the region’s the lesser-developed countries in of U.S. goods sold abroad. with representatives of U.S. second revision of the original long-term viability has led to un- garments and still qualify for U.S. manufacturers, which manufacturers Thursday. 2000 legislation, also would ex- derinvestment and an undevel- duty-free status. have shed 2.8 million jobs since the Chinese have liberalized tend the overall AGOA program oped textile industry,” said Jeffrey Such rulings “ended up hurt- Bush took office in 2001, said certain capital flows, recapital- through 2015. It currently is set Streader, VF’s vice president for ing the people in the poorest they were angry at being la- ized their banks and are work- to expire in 2008. The bill is con- global sourcing. VF buys apparel countries in Africa,” testified beled “economic isolationists” ing to develop a currency deriv- sidered the only trade measure from seven African countries. Lucy Soares-Demelo, senior mar- by the administration, as well as atives market. that’s expected to easily clear However, Mark Levinson, chief keting director based in South the handling of their planned Snow recently appointed Congress this year. economist with the apparel union Africa for Mast Industries, the petition on alleged Chinese cur- Paul Speltz direct emissary to Subcommittee chairman Phil UNITE, said the region’s workers sourcing arm of Limited Brands. rency manipulation. Beijing on currency reform. Crane (R., Ill.) said he expected haven’t benefited from AGOA or “The only winners from these “Both sides aired their views,” Speltz and another senior AGOA 3 to be considered by the its third-country fabric provision. decisions were the factories in said Rob Nichols, the Treasury’s Treasury official will visit China House in the “coming weeks.” He cited cases of apparel workers Asia, which were able to win chief spokesman. “Our view is next month to continue the talks. Importers said the bill’s pas- receiving below-standard-of-liv- back or keep business that other- that we are making progress with “With steady progress clearly sage allowing the use of third- ing wages and the refusal of man- wise would have been placed in the Chinese on the currency being made, the most effective country fabric is crucial for Africa. agement to recognize unions. Africa,” Soares-Demelo testified. issue. We think our persistent en- way at this time to achieve the “Uncertainty regarding duty Extending benefits also won’t “My estimate is that these and gagement is the best way to goal of a flexible, market-based and profit margins due to the help African apparel producers other actions by [Customs] cost achieve a flexible market-based exchange rate in China is to main- delay in [Congressional] action better compete once quotas on $1 billion in lost orders for exchange rate.” tain the persistent engagement we on the…extension, coupled with apparel and textile trade are re- African factories.” Snow, joined by Labor Secre- have established,” Snow said. The administration is not going to Tiffany Warns of Diamonds Losing Luster “deal with China in any way that will benefit the working people of the U.S. NEW YORK — Tiffany & Co. alert- ternational terrorism. that diamonds are a commodity, ed investors to two unusual con- Tiffany said it has taken an ag- rather than a luxury purchase. — Jim Chesnutt, National Spinning ”Co. cerns that could imperil its sales gressive approach to exclude con- “The rise of the Internet and in the future: the association of flict diamonds from entering its increased use of diamond condi- tary Elaine Chao, Commerce U.S. mill executives Thursday diamonds with brutal wars in supply chain. To the company’s tion reports issued by independ- Secretary Don Evans and U.S. said the decision would cost jobs. Africa and the debasement of the credit, Global Witness, a leading ent gemological associations have Trade Representative Robert “The administration is not gems in the minds of consumers. nongovernmental organization given rise to the mistaken impres- Zoellick, said at a news confer- going to deal with China in any Among the boilerplate risks monitoring the conflict diamond sion amongst certain consumers ence on Wednesday that the AFL- way that will benefit the working the company enumerated in its trade, said that of 30 major dia- that diamonds are commodity CIO petitions would amount to people of the U.S.,” said James annual report, which investors mond retailers and wholesalers, items and that significant quality “economic isolationism,” a Chesnutt, president and chief found in their mail last week, only Tiffany “stood out because it differences do not exist,” phrase the administration has executive officer of National Tiffany’s warned that efforts by described how it has strength- Tiffany’s said. tried to link to the policies Sen. Spinning Co., a Washington, nongovernmental organizations ened its sourcing and auditing The company said that it com- John Kerry of Massachusetts, the N.C.-based yarn manufacturer. to increase public awareness policies to help ensure that it is petes by stressing quality, “while presumptive Democratic presi- “They’re completely out of touch about “conflict” diamonds could not dealing in conflict diamonds.” some competitors offer inferior dential nominee. with working Americans.” “encourage legislative response Moreover, Tiffany inked a deal diamonds claiming they are com- “In labeling proponents of Financier Wilbur Ross, chair- [and] affect consumer demand in 2002 to buy at least $50 million parable, but at lesser prices.” the petition as economic isola- man of International Textile for diamonds.” in diamonds from the Diavik Wal-Mart, for example, sells a tionists, it raised the debate to a Group, including Burlington and Conflict diamonds refer to mine in Canada in order to gain 1-carat diamond solitaire engage- higher political level and I don’t Cone Mills, said the AFL-CIO’s the illicit trade of rough stones, more control over its sourcing. ment ring in a platinum setting for see how that is helpful to estab- petition — arguing that China ar- the proceeds from which are Tiffany’s other great concern $3,288, whereas a “Tiffany-quali- lish a constructive dialogue on tificially depresses wages used to support armed conflict is that the increasingly fierce ty” 1-carat diamond engagement this very important issue,” said through a system of internal trav- in countries such as Angola, competition for engagement ring is priced at $8,800 to $32,000, Cass Johnson, president of the el controls — would have benefit- Sierra Leone and Liberia. They jewelry sales has created a per- according the company’s Web site. National Council of Textile Or- ed the average Chinese worker are also thought to help fund in- ception in consumer’s minds —Dan Burrows ganizations. “People are very as well as those in the U.S. angry, not only at the decision “What’s the whole theory of but in the manner it was done.” free trade and world trade?’’ he Frank Vargo, vice president said. “The whole theory is to for international economic af- bring up living standards around Markdowns Hit Russell Earnings fairs at the National Association the world. If you start raising liv- of Manufacturers, called the ing standards in other countries, NEW YORK — Hurt by inventory quired in the last year. Sales in pected to be about $60 million, meeting with Snow productive you’ve not just made us more close-out costs, Russell Corp. re- the base business were flat. higher than the $50 million that and positive. competitive, but also raised the ported a steep drop in first- Nonetheless, Russell’s chair- was earlier projected. Johnson said the Fair Cur- living standards of the average quarter earnings. man and chief executive officer The firm’s shares fell 2.39 rency Alliance, of which NCTO is Joe…All we are doing now is say- The athleticwear giant’s prof- Jack Ward said the company ex- percent to $17.55 Thursday on a member, will meet today to dis- ing we are going to undermine its fell to $500,000, or 2 cents a pects improved sales for the full the New York Stock Exchange. cuss whether to go ahead and file the American standard of living share, from $3.4 million, or 11 year due to new and expanded In a separate development, its petition on currency manipu- by exporting the jobs.” cents, last year. The company programs with stores such as Russell said earlier this week it lation. “We have the same goals James Gutman, president of also was hit by charges relating Target and Dollar General. will supply athletic apparel, to get to flexibility,” Nichols said. New York-based importer Press- to product cost reductions. Full-year sales results for 2004 team uniforms, balls and sports “We think we have the better way man-Gutman, disagreed. “We Sales jumped 10.4 percent to are projected to be between equipment for the Southwestern to do it.” should stay out of attempting to $251.8 million from $228 million, $1.26 billion and $1.3 billion, Athletic Conference and the Snow said Wednesday the manage or influence the internal although the increase was pri- while earnings are slated to Southern Intercollegiate Athletic Chinese are “actively taking affairs of sovereign countries,” marily driven by Spalding Sports reach between $1.40 and $1.60 a Conference, and will also have steps to modernize their finan- he said. Worldwide and Bike Athletic share. On a positive note, Ward exclusive licenses for the logos of cial infrastructure with the goal — With contributions from company, both of which were ac- said costs reductions are now ex- the schools in both conferences. of a flexible currency.” He said Scott Malone, New York WWD, FRIDAY, APRIL 30, 2004 13 Te rror Fears Slow L.A. Retail Traffic

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Santa Monica Place

Federal Bldg.

Westside Pavilion

West field Shoppintown Century City

A map of malls near Security was tightened at L.A.’s Federal area malls, including Santa Building. Monica Place, shown here. PHOTO BY DONATO SARDELLA DONATO PHOTO BY

Continued from page 2 ed threat public because of the specific date and nature Britt Beemer, chairman and founder of America’s even leave early.” of the supposed target — a shopping mall. A uniformed Research Group, a consumer behavior and strategic mar- Six employees at Pacific Sunwear at Westside Los Angeles officer at Westside Pavilion, Munif Ali, said keting firm, said, “The maximum impact is about a 35 per- Pavilion called manager Andrea Williams at her home the police presence was “two to three times more than cent decline at malls. Over a third of Americans say they on Wednesday night to tell her they wouldn’t be working we normally have at the mall. We want to have a visual would definitely curtail their shopping or other activities. after the threat advisory was made public in broadcast presence as a deterrent. We’ve been here since the early “We’ve surveyed consumers four times’’ since the Sept. news reports. morning before the mall opened and we’ll be here way 11 terrorist attacks, he said. “Usually you see a freeze in “They said, ‘Don’t even call, we’re not coming in,’” after it closes. It may not end today, we just don’t know.” consumer shopping in certain categories for quite awhile. said Williams, the only employee at the store that sells Los Angeles Mayor James Hahn’s office did not com- In this case, there will probably be at least a lingering ef- surf and skating apparel. She said she asked her gener- ment on the threat at press time. fect for one or two weeks. People ask themselves, ‘What al manager “if I could have one of those exempt days Away from the malls, and in typical California fash- happens if [the authorities] got the day wrong?’” where I don’t have to sell a dollar. He said, ‘yes.’ Believe ion, many shoppers were unfazed. Jack Kyser, chief economist for the Los Angeles me, I’m not thrilled about it. It’s not like we’re going to On Beverly Hills’ posh Rodeo Drive, Angela Janklow- Economic Development Council, said the Mother’s Day make any money today.’’ Harrington, managing director-special projects of Dolce holiday on May 9 may help offset any retail sales losses. Television news helicopters were in the air over the & Gabbana, said the alert “wouldn’t slow our customers “As soon as they lift the alert it will be back to business shopping malls, and broadcast satellite trucks and re- down. I’m getting in my car right now and traffic on as usual,” he said. porters added to the sense of anxiety, mall officials said. Rodeo is status quo — as bad as always.” “It’s obvious people are going to avoid any mall, and not A spokesman for the U.S. Department of Homeland The International Council of Shopping Centers, the only today,” said Kenneth A. Wasik, director of the con- Security, Brian Roehrkasse, said federal officials re- trade organization for the nation’s malls, held confer- sumer products group Houlihan Lokey Howard & Zukin. ceived the mall threat from an “individual” earlier this ence calls for its security task force. Asked about the im- “Tomorrow, this scare is still going to feel fresh, and a week. He declined to say in what form the threat came pact of the terror alert, Malachy Kavanagh, a week from now, some people will still be holding out.” or the actual day it was transmitted. spokesman, said, “We don’t think it will necessarily — With contributions from David Moin, New York, Los Angeles police said they made the uncorroborat- transcend outside the immediate area.’’ and Joanna Ramey, Washington Growing Retail Presence Columbia Net Rises 33.8% Puts Guess Back in Black On Strength of Spring Mix NEW YORK — Guess Inc. surprised Wall 12.8 percent. The better comps helped NEW YORK — Demand for its spring percent to $40.4 million. Accessories Street by swinging back to profitability Guess to substantially leverage its costs. products allowed Columbia Sports- sales zoomed up by 51.9 percent to $8.2 in the first quarter. “The increase in same-store sales cou- wear Co. to post double-digit percent- million, the company said. Thanks in part to a massive improve- pled with a significant margin increase age gains in sales and earnings for the By region, domestic sales gained ment in earnings from its dwindling and a lower-selling, general and adminis- first quarter. 15.8 percent to $115.3 million, while wholesale operations, the Los Angeles- trative expense rate resulted in a $10.7 For the three months ended March European sales shot up 33.2 percent based jeans company reported net in- million improvement in operating in- 31, the company on Thursday report- to $42.9 million. Even better were come of $756,000, or 2 cents a diluted come for the period,” said co-chief exec- ed an income gain of 33.8 percent to other international sales, which sky- share, for the three months ended March utive officer Paul Marciano in a state- $20 million, or 49 cents a diluted rocketed 37.4 percent to $26.1 mil- 27. Analysts had forecast a loss of 4 cents. ment. “We have maintained a clear focus share, from $14.9 million, or 37 cents, lion. Not to be left out of the party, Last year, by comparison, Guess took a on our inventory management and cost in the same year-ago quarter while Canadian sales were up 23.8 percent bath in red ink with a loss amounting to control as we continue to grow our rev- sales climbed 22.4 percent to $206.7 to $22.4 million. $5.8 million, or 13 cents. enue base through store expansion and million from $168.9 million. Gross Columbia Sportswear said that fall Net revenues for the quarter im- same-store sales increases.” profit at $93.9 million represented backlog for global orders rose 12.7 proved 9.9 percent to $153.3 million Underscoring that point, Guess said 45.4 percent of sales. The percentage percent to $664 million, and the com- from $139.6 million a year ago. April same-store sales are forecast to was identical to the year-ago quarter pany expects fiscal 2004 sales to rise Broken down by business segment, grow in the midteens. even though the cost of sales rose by 11 to 12 percent. revenues from wholesale operations ac- Traditionally thought of as a whole- 22.4 percent, in step with the percent- Income is expected to increase 10 tually declined by 4.8 percent to $42.9 saler, Guess last year derived more than age gain in sales. percent over last year. Contributing to million, but greater efficiency led to a 70 percent of its net revenue from retail Tim Boyle, president and chief ex- the firm’s growth was its March 31, more than fifteen-fold increase in seg- operations, while 23.5 percent came from ecutive officer, said in a statement, 2003 acquisition of Mountain Hard- ment income to $4.1 million from just the manufacturing business. Indeed, just “Columbia again delivered strong wear, which added $9.7 million in $260,000 a year ago. five years ago the contributions to net sales and operational performance in sales for the quarter. Retail operations, which have eclipsed revenue from the segments were almost the first quarter, driven by accelerat- Boyle said in the statement that the wholesaling as the core of Guess, saw rev- equal, with retail accounting for 47.2 per- ing demand for our spring related company expects second-quarter rev- enues fall 19 percent to $99.5 million. cent of sales and wholesale generating 45 sportswear and footwear products.” enue growth to be in the 8 to 10 per- However, the segment dramatically pared percent. The remainder of Guess’ rev- By category, sportswear sales in the cent range, with income flat versus its operating loss to $1.7 million from $6.5 enue comes from licensing. quarter jumped 19.6 percent to $117 the same fiscal 2003 period. million last year, as same-store sales rose —Dan Burrows million, while outerwear sales rose 12.2 —Vicki M. Young 14 WWD, FRIDAY, APRIL 30, 2004

Designer

Assoc/Asst Designers Theory currently has exceptional opportunities for highly motivated, Education Manager creative Designers in sweaters, knits Philosophy, an expanding skincare brand and wovens for our midtown corporate in prestige retail, seeks a West Coast office. Minimum 2 years design Education Mgr. Candidate must reside experience. Excellent compensation inSo. or No. California. Responsibilities package. Please send resume: include, presentation seminars for retail [email protected] or accounts, events, creative input, com- fax (212)921-5882 puter skills, and extensive travel. Candi- date must have min. 2 years exp. as an educator. 5 years exp. in the skincare/ DIRECTOR OF beauty industry as an account executive, TECHNICAL DESIGN store management or buying category requiredFax resume with salary require- Great opportunity! Great company! ments to the corporate office at: Leading intimate apparel mfg. seeks 480-736-8009 EOE experienced & highly organized Director of Technical Design for Ladies, Mens & Kids Daywear/Sleepwear. Resp incl.: JOIN OUR TEAM! daily communication with overseas office & factories, fittings, data entry, Guinot Paris recordkeeping & follow up, strong technical knowledge & flat sketching. Guinot Paris, a leader in the professio nal Must be computer literate & have salon industry has immediate paternmaking knowledge. Knowledge of openings for the following positions in AIhelpful. Experience with Mid Tier & Southern California: Mass Market a plus. Please fax resumes Educator/Trainer to 212-842-4040 attn: D. Anteby. We are Weare seeking motivated individuals an equal opportunity employer. who will conduct educational events and activities that encompass theory, hands on products knowledge, and SaraMax techniques exclusively for the Guinot product line. Must be a licensed Esthetician and possess excellent pub- Graphic Artist/Freelance lic speaking skills with technical and Newborn, Infant and Toddler graphic teaching background. designer wanted. Fax resume to: Director of Sales and Marketing 212-222-3493 between 9AM - 6PM. Will develop Guinot’s business of professional products through beauty MERCHANDISER salons, cosmetology schools, chain Cosmetic Pkg & Accessories Co. in NJ accounts and distributors. Will also seeks Merchandiser to be the inter- develop and implement strategy for face on projects between the USA and achieving sales goals. Implement inno- China Experience in soft goods vative techniques for acquiring new (cosmetic bags / accessories) required. clients, maintaining customer loyalty Excel/ Word a must. Bi-lingual in and generating referrals. Strategically English/ Chinese a plus. Please send plan and execute marketing calendar For Space in Garment Center resume and salary requirements to: and promotions for the Guinot brand. [email protected] BA degree preferred with minimum Helmsley-Spear, Inc. or fax: 973-423-1976 3-5 years experience in the cosmetic 212-880-0414 industry with proven track record. Both positions require up to 50% Showrooms & Lofts Merchandiser/Division Head travel. We offer an attractive benefit BWAY 7TH AVE SIDE STREETS LADIES BELTS package including 40l(k) match. Quali- Great ’New’ Office Space Avail Accessory importer opening a belt fied candidates, please send resume ADAMS & CO. 212-679-5500 division for Jr. specialty & mass with salary history to: market seeks a candidate w/ min 3 yrs exp a must. Good salary & [email protected] benefits +performance bonus. Apparel Production Email us at [email protected] Coordinator Leading childrenswear company seek- ing a highly motivated, detail-oriented Production Coordinator individual. The candidate should have Fast paced Cut & Sew Knit Apparel Co. Bryant Pk Duplex 1100, 2000, 4500 FT. aminimum of 3 year’s experience in seeks an individual to assist in all phases 20 Ft Ceilings - Great Windows/Views the apparel industry. The candidate of prod’n. Must be a detail oriented, SoHo-Sublet Penthouse 2000 FT will oversee all aspects of production multi-tasking team player w/excellent Prime Manhattan Jon 212-268-8043 approvals to ensure on-time delivery. communication skills. Duties include Will maintain and handle line plans, charge backs, heavy follow-up, and data styles, fabric and trim tracking, and entry. Computer knowledge a must. Min. GirlStar* seasonal status reports. The candidate 2 years exp. Great atmosphere & benefits! Brand is available for licensing will standardize and approve raw mate- Fax resume & salary to: 212-221-1353 opportunities. GirlStar is currently rial development, daily communica- being sold in Junior Swimwear in tion with vendors and be responsible Specialty & better Department stores. for maintaining sample lines. Office For more information please contact: skills required include a working Production Manager Don Grier at Gotcha International, LP knowledge of the AS400 & Microsoft Highly organized and motivated team (949) 221-0990 Word & Excel. Please e-mail your re- player needed for young designer sume to [email protected] or fax to eveningwear company. Must have (212) 643-2826. No telephone calls excellent computer skills, strong tech- Off-Price Specialist please. EOE Can’t Sell Your O/P on the East Coast? nical knowledge, able to handle all Contact West Coast Troubleshooters! The Donna Karan Company LLC, one of the world’s aspects of inhouse and domestic Serving Mfrs. for 20 years / Larry Hirsch CALVIN KLEIN KIDS leading design houses, has exciting opportunities for production. 818-996-1743 / miramar3145B4@aol,com Please fax resume to 212-564-6357 A division of Major Children’s talented Product Development Coordinators/Technical or email [email protected] Wear Company seeks: Apparel Staffing Designers to join our fast-growing team. Assistant Designer See Career Openings @ www.apparelstaffing.com In this area you will assist the Product Managers with the de- With at least 3 yrs experience Fax Resume To (212) 302-1161 velopment process including creating body charts/maps, and RECEPTIONIST to add to our Girls Creative designing BOM packs through Vertex. Ideal candidate will Distributor of footwear seeks dependa- Team. Sharp computer ble, reliable person. Attend to busy Pattern - Production - Samples have 3-5 years work experience in the fashion industry; phones, perform various clerical duties, and motivational skills. strong organizational and follow-up skills; and be precise showroom tasks and UPS shipments. Full - Fast - Quality and detail oriented. Computer skills in Vertex or PDM, Excel, Must be computer literate. 212-575-1001 Graphic Artist Bonita Cosmetics Please fax resume: 212-751-3336 To add to our Creative Team. ACCOUNT COORDINATOR Illustrator, Photoshop a must. Sharp Computer skills in Is looking for a cosmetics Account PATTERNS, SAMPLES, Coordinator to service Macy’s stores. To apply, please email resume with salary requirements to: Illustrator, Photoshop etc. You must have experience in mgmt., PRODUCTIONS [email protected] of fax to 212-768-5937. RETAIL PLANNER Looking for a very motivated sales, make-up artistry. You must be Major Accessory Co. seeks self- All lines,Any styles. Fine Fast Service. a leader in motivation, event planning, We will only contact those applicants selected for further Call Sherry 212-719-0622. person with a upscale tween motivated & detail-oriented individual. problem solving and driven by goals! consideration. EOE. Responsibilities include retail forecast- junior taste level. Please fax your resume to: (718) 358-3164 ing, sales analysis, price & margin PATTERNS, SAMPLES, Excellent benefits & or Email: [email protected] performances, turns and new product PRODUCTIONS working atmosphere. performance. Must possess strong ana- Samples and patterns full service shop lytical skills, proficient in Word & to the trade. Fine fast work. Please fax resume Attn: Excel, knowledge of "Partners on Line" a plus. 212-869-2699. Marcella (212) 967-9292 Buyer (Miami, FL) for lingerie company. Fax resume & salary requirements to: Coordinate b/w manufacturers / vendors HR 212.273.9202 and company regarding color, quantity, pricing, delivery terms, & returns. 2 DESIGN POSITIONS Monitor inventory for stock. Forecast ACCOUNTANT product trends, anticipate color/design Wovens Designer Well established apparel co. seeks a specifications and assist in preparation SHIPPING DEPT senior level staff accountant, with /design of merchandising plans. 3 years Experience designing woven sportswear for the modern, missy customer. multi-tasking capabilities. Min. 5 yrs. experience in job offered required. Must have sharp eye for color,trend and styling.CAD experience a plus. SPECIALIST work exp, office operations, analysis Wholesale Jewelry Co. in NYC is FASHION RESUMES SINCE 1970 35hrs/wk, comp. salary. Fax resumes: Responsibilities include trend research,sketching,fabric research, spec skill, reconciliation & tax knldge. ATTN: HR to 305-253-9500 seeking a reliable person to handle all Rush Service Available Apparel industry bkgrnd pref. Hard development, styling and fittings. Works closely with Merchandiser and shipping to its nationwide customers. PROFESSIONAL RESUMES, INC. working, checkable refs. Must be Must have experience with UPS (212)697-1282 / (800)221-4425 familiar w/computerized acctg. pro- sweater designer. Online and personal references. www.resumesforfashion.com grams. Chinese Bilingual A+. Compet- Fax resume to: (516) 731-3753 itive salary + benefits package, CAD Artist/Designer Design Assistant Fax res./sal hist/ req. to 212-354-2661 Come grow with us! Experience in wovens and or knits. Must have CAD experience. Position or email [email protected] Fast-paced Newborn/Infant Co. seeks exp’d. CAD Designer w/skills in Photo- will work closely with woven and sweater designers. Responsibilities shop & Illustrator. Must have exp. w/ include color approvals sand follow-up for all divisions. SWEATER DESIGNER Admin Since 1967 prints, appliques, graphics, & flat Fast paced Women’s Sportwear Co. W-I-N-S-T-O-N sketches. Looking for creative/upscale Please Fax or E-mail resumes to Laurie Herbst VP seeks sweater designer with min 5 artist w/fashion flair to add to the years exp in better or contemporary Freelance Sample Maker APPAREL STAFFING infant market. Exp. with infant or Marisa Christina Inc. market. Must have strong technical Dress Maker - Alterations DESIGN*SALES*MERCH childrenswear a must. Hardworking & knowledge and have contacts with ADMIN*TECH*PRODUCTION fun atmosphere. We want to hear from Fax: 212-921-7632 E-mail: [email protected] factories and yarn agents. Call 718-749-1751 (212)557-5000 F: (212)986-8437 you! Fax to: 212-279-0131 Fax resume to Lynn 212-302-2399 WWD, FRIDAY, APRIL 30, 2004 15 Net Flat at Hugo Boss as Sales Advance BERLIN — Hugo Boss AG’s first-quar- cent but remained under pressure Liz Claiborne Net Gains ter profits came in unchanged, miss- from Germany’s weak consumer envi- Continued from page 2 ing analysts’ estimates, despite sales ronment, the company said. At Boss for a sales rise of 6 to 8 percent, with earn- Acquired last growth during the period. Woman, sales were up 31 percent to ings ranging from $2.70 to $2.77 a share. year, Juicy Net income for the first three $22.4 million and operating profits to- For the second quarter, Claiborne projects a 3 Couture has months of the year was $51.9 million, taled $1.2 million versus a loss of the to 5 percent sales increase with earnings of 41 to been a growth or 44 million euros converted at cur- same magnitude in last year’s quarter. 43 cents a share. Analysts were looking for earn- vehicle for Liz rent exchange. Analysts had expected For the full year, the company said ings of 44 cents a share in the second quarter. Claiborne. profits to fall within the range of $56.2 it expects slight growth in revenues “People kind of freaked out because the million, or 47.6 million euros, to $61.4 but a greater advance in earnings. second-quarter guidance looked a little bit million, or 52 million euros. Although analysts were generally lower than what people expected,” said ana- Sales for the Metzingen-based disappointed with the group’s earn- lyst Jennifer Black, president of Jennifer men’s and women’s wear house rose 5 ings performance, Landesbank Black & Associates. percent to $421.3 million, or 357 mil- Rheinland-Pfalz upgraded the com- She said the company was taking a bal- lion euros, in the first three months of pany to “market performer” based on anced approach to growth, though. 2004. Moreover, when adjusted for sales growth and improvement in the “The whole key to this company is to max- currency effects, group sales were up American market. The bank also imize its productivity on a per-square-foot 8 percent. raised Boss’ target share price to 21 basis [in stores] and generate the highest op- About half of that increase came euros from 19 euros. erating margin for each division on a long- from the newly integrated underwear, Merrill Lynch, on the other hand, term basis,” said Black. sock and knitwear classifications, as reiterated its “neutral” recommenda- Wholesale apparel sales for the quarter well as shoes and accessories, which tion, stating in a report on April 24 inched up 0.6 percent to $774.4 million, due will be fully taken in-house this year. that “while the Boss Woman business in part to $57 million in revenues from the U.S. business also contributed as is growing fast and is now profitable, Juicy Couture and Enyce brands, acquired sales rose 19 percent in dollars dur- the group’s leading brand, Boss Man, last year, and a $22 million benefit from cur- ing the quarter. has not fully recovered.” rency exchange. Men’s wear sales were up 4 per- — Melissa Drier Offsetting these gains almost entirely was a $74 million decrease, resulting primarily from a 28.8 percent falloff in the Liz company’s portfolio, including the Dana Claiborne brand and an 18 percent decrease Buchman and Ellen Tracy brands, generated in the moderately priced business. the strongest performance in the quarter, Charron, in a phone interview, declined to while moderate, especially the Villager The Body Shop Profits Hit $16.9M for Year predict when the Liz brand would again brand sold in Kohl’s and Mervyn’s stores, was NEW YORK — Sizable gains from its prices,” said Adrian Bellamy, execu- show growth. among the weakest categories. businesses in the Americas lifted prof- tive chairman, and Peter Saunders, “I have some internal targets,” he said. “We Kohl’s recently said it would roll out a its and helped maintain revenue lev- chief executive officer, in a statement. think that there’s no reason why the Liz brand line called apt. 9 for fall and is looking for 25 els for The Body Shop International Revenues generated from the cannot grow in the mid-single digits going for- percent of its sales this year to come from PLC for the year. Americas led globally and buoyed re- ward, but we have to work our way though this private brands. Charron denied that Villager For the year ended Feb. 28, the sults, rising 13 percent to $210.6 mil- migration of certain accounts to higher- was being squeezed out, though. English skin and hair products retailer lion, or 125.8 million pounds, from priced, less broadly available options.” “Villager is largely a highly profitable and said profits after taxes and dividends revenues of $170.7 million, or 111.3 The 144-door Macy’s West chain has cut extremely relevant brand for Kohl’s,” he climbed to $16.9 million, or 10.1 million million pounds. back on its open-to-buy, or the preapproved said. “Kohl’s entire raison d’être has been pounds, from $3.2 million, or 2.1 mil- The company’s home market re- amount a buyer can spend, on the Liz brand, national brands at lower prices and while lion pounds, in the previous year. mained its largest, but suffered the said Charron. Likewise, Lord & Taylor re- many of these have been in the so-called Revenues remained essentially flat greatest declines during the year. cently stopped carrying the name in misses’ commodity area, they’ve also embraced for the year, coming in at $637.8 mil- Revenues generated in the U.K. and sportswear. In both cases, Claiborne has brands like Villager and Axcess.” lion, or 381.1 million pounds. Comp- the Republic of Ireland slid 11.8 per- been able to pick up at least some of the While wholesale apparel made up more aratively, the company reported rev- cent to $217.6 million, or 130 million slack by moving in other, higher-priced than 70 percent of Claiborne’s sales in the enues of $584.2 million, or 381 pounds, pounds, compared with $226 million, brands from its portfolio. quarter, the firm has been diversifying its in the previous year. or 147.4 million pounds, in the previ- Claiborne introduced a more focused offer- base rapidly with retail stores. Figures have been converted to ous year. ing under the flagship brand to consumers this Retail sales rose 13.6 percent to $208 mil- dollars at average exchange for the According to a statement, the spring, combining several subbrands into one lion, with currency exchange and increased corresponding periods. company is embarking on a $177.4 master label. Full-price sales of the Liz brand, comparable-store sales in the specialty store “Our strategy is to move the brand million, or 100 million pound, expan- which is being supported by a marketing cam- business boosting results. to a ‘masstige’ positioning by develop- sion campaign to be carried out over paign aimed at a slightly younger customer, in- International sales, which are heavily de- ing innovative and credible products the next several years. creased 11 percent during the quarter. pendent on the Mexx brand, rose 21.1 per- for our customers at affordable —Ross Tucker The higher-priced bridge segment of the cent to $268.3 million during the quarter.

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she’s asked her agents to try to get her a record deal. Later this month, she will show her stuff in the movie version of Sir Andrew Lloyd Weber’s “Phantom of the Opera.” Minnie is a little worried about her image as a musician — she doesn’t want people to think she’s an WCETT BY WIREIMAGE WCETT BY WCETT BY WIREIMAGE WCETT BY opera singer. She just wants to get a little independent FA FA record deal before the movie comes out. ● Cate Blanchett and her husband, Andrew Upton, have a powder blue nursery in their Brighton, England, home, all prepared for their brand-new baby boy, Roman, who was born just a few days ago in London. Cate hasn’t much time to get her figure back before she starts making appearances to promote Martin Scorsese’s new film about Howard Hughes, “The Aviator,” in which she stars as Katharine Hepburn, because right after that she begins a new movie, “Little Fish.” So, already, she’s working with a nutritionist, a private chef, a trainer and several designers toward that end. She’s looking at clothes that will showcase her blooming bosom and hide any leftover baby fat. She’s a mummy but she wants to keep yummy. ● Can you picture Russell Crowe as one of the Three Stooges? He’s excited about a script by Peter and Bobby Farrelly and is seriously considering starring in the flick as Moe Howard, the leader of the cuckoo trio. The movie is currently being called “Dumb & Dumber & Dumbest” and Peter Farrelly wants Crowe “because he’s got a chip on his shoulder and a block-nosed Moe look. All you have to do is put prosthetic bags under his eyes and give him a wacky haircut.” Sean Penn is at the top of the Farrellys’ wish list to play Larry and they would like to fill out the bill with Mel Gibson as Curly. Smart, Smarter and Smartest. ● Johnny Depp’s country hotel in England was recently robbed while Johnny was staying there during the making of his movie “The Libertine” with John Malkovich and Samantha Morton. The hotel’s office was broken into and the crooks zeroed in on the safe, but because it was bolted to the floor they had to settle for the hotel’s collection of digital movies. Luckily for them, the Pirate of the Caribbean was asleep, because everyone knows he’s a tough hombre.

Suzy In this new film, Depp plays the notorious 17th-century rake, playwright and poet John Wilmot, Earl of Rochester, By Aileen Mehle the greatest scoundrel in the court of King After almost seven years apart, Farrah Charles II. Perfect casting again, darling. Fawcett and Ryan O’Neal have put their hard ● feelings behind them, rekindled their The event of events at the recent New eye® friendship and, some say, their romance. York International Art & Antiques Show There have been candlelit dinners at home, at the Park Avenue Armory was the work long spells of hand-holding and walks on the beach in Farrah Fawcett of designer David Monn, who created a Malibu. They were together for 17 years after their lavish, English, lavender garden for romance broke up Farrah’s marriage to Lee Majors. Penhaligon’s president, Joe Cicio, for the Farrah’s and Ryan’s son, Redmond, now 19, is supposedly launch of his new fragrance, Lavandula, at taking on the role of cupid for his parents. If they do get the show. A passage lined with a lavender together, the resulting publicity might just jump-start their carpet and an allée of 15-foot topiaries ran flagging careers, but I don’t think they’ve given a thought from the entrance of the Armory to a to that, do you? central garden, laid with beds of fresh ● lavender. The exhibit also featured garden Kim Cattrall will co-chair the world’s largest block party, furniture designed by the Prince of Wales called “Madison Avenue Where Fashion Meets Art” next for his Highgrove country estate in Thursday. The event will span 29 blocks and include over England, which, by the way, you can buy, 100 shops. David Lauren will play host at daddy Ralph right here, in NYC at Janus & Cie. Lauren’s place and Calvin Klein will introduce his designer ● Francisco Costa to guests at his store. Cornelia Guest — Among those honored at the Bard whose mother, the late C. Z. Guest, is on the cover of Slim Graduate Center for Studies in the Aarons’ book “Once Upon A Time” — will stop by Decorative Arts, Design, and Culture was Kaufmann de Suisse, which will display rare, original Lily Safra at a luncheon in the St. Regis. photographs by Slim, and while she’s there, tell him about Susan Weber Soros, the founder and the new pilot she has just completed for NBC called director of the center, presented the “Revelations,” starring Bill Pullman. Donatella Versace award for Lily and her late husband will hang two Basquiat paintings from her private Edmond’s extensive philanthropic collection in her boutique, while Hunt Slonem will hang Deeda Blair Kim Cattrall commitment. Friends of Lily’s there to his parrot paintings at Givenchy and Swarovski will display honor her on this very special day were a $750,000 piano, shimmering with 9,000 crystals. The her daughter Adriana Elia, Mica Ertegun, event’s after-party will be held at the Whitney and benefit Miss U.S.A., Shandi Finnessey, will present awards to Linda Wachner and the famous architect, Thierry Despont. the museum’s family arts program. Among the committee other honorees. Hearst’s Cathleen Black is the event’s ● members are Donna Karan, Glenda Bailey, Jane Seymour honorary chairman, and one-of-a-kind handbags by Elissa Deeda Blair, the fashion and society icon, formerly of and Deborah Norville. Bloom will be auctioned off, stuffed with goodies from Washington and now an official New Yorker, will host a ● Diane von Furstenberg, Nancy Corzine and Gucci. reception in association with the Harvard AIDS Institute at Diane Sawyer will present an award to ABC ● Bergdorf Goodman on Monday. The evening will showcase television’s new president, Anne Sweeney, at the United Minnie Driver, who got her first taste of showbiz playing a collection of hand-decorated porcelain flowers, created by Cerebral Palsy’s Women Who Care gala at Tavern on the guitar and singing jazz in London clubs, wants to resurrect Vladimir Kanevsky. Some of the pieces from the collection Green on Thursday. Donna Hanover will be the emcee. her singing career. Last month, she performed at the will be sold at a silent auction from Monday through Helen Gurley Brown, Dayle Haddon and the brand-new South By Southwest Music Festival in Los Angeles and Saturday and will benefit the Harvard AIDS Institute.