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s s FASHION: CFDA and QVC MEN’S: s EYE: team up for Fashion Targets The link Partying Breast Cancer, page 3. between for Calvin rising Klein and underwear Charlotte s sales and BEAUTY: Chanel opens Ronson, the economy, new space at Selfridges page 4. page 12. in London, page 12. Women’s Wear Daily • The Retailers’ Daily Newspaper • August 24, 2009 • $3.00 WwDMONAccessories/Innerwear/LegweardAY Brighten Up Legwear manufacturers crank up the wattage this spring, WILLIAMS t offering plenty of splashy florals, tie-dyes and kaleidoscopic UR o patterns. Here, Me Moi’s nylon and spandex tights with C by Tigerlily’s swimsuit. For more, see pages 6 and 7. LED ty S; S t ER ob : ELISSA R t AN t N ASSIS Adapting for Survival: o I h RICK; FAS t A Vendors Redoing Model p : SUSANNA t For Era of ‘New Normal’ AN t ASSIS By WWD Staff Get ready for the Post- photo ICS/ Recession Era. t SME Even as vendors and retailers continue o to struggle with nonshopping consumers, R MAC C declining sales and a near-term outlook that o F to remains uncertain, the outlines of the world beyond the economic downturn are coming DE FAC t A into focus. And the result can be summed up in phy one phrase: Less will be more. The NPD Group estimates that 12 percent of vendors will not survive the recession and WILLIAM MUR by nearly 20 percent will abandon expansion p strategies and retrench, focusing on their core ; MAKEU products and markets. There will be fewer ht consumers, which will mean fewer stores, fewer collections, fewer products per collection DARIA WRIG by and lower inventories. AIR h E; t See Vendors, Page10 RRES/ELI to ERINE th DEL: CA o LE ERICKSEN; M y K by PHOTO BY BY PHOTO photo 2 WWD, MONDAY, AUGUST 24, 2009 WWD.COM Loss Propels Strategy Shift at Ann Taylor By Alexandra Steigrad WWDAccessories/Innerwear/LegwearMONDAY ANNTAYLOR STORES CORP. INTENDS TO shift its emphasis to promotions and away from FASHION markdowns after swinging to a second-quarter Whether in loose wovens, patterned sheers loss, principally on weakness in its namesake 6 or solid opaques, legwear in saturated tones division and restructuring charges. add some pep to a step for spring. The company, which expects the current dif- ficult conditions to continue to pressure sales as GENERAL consumers stray from higher-end and profession- The outlines of the world beyond the recession al apparel, said it would increase in-store promo- 1 are coming into focus and the result can be tions on select items while limiting markdowns. summed up in one phrase: less will be more. In a phone interview with WWD, president and chief executive officer Kay Krill said this 3 Fashion Targets Breast Cancer, celebrating its approach would highlight the “versatility and 15th anniversary, is teaming up with QVC to value” of Ann Taylor, the company’s higher- launch QVC Designer Charms for Charity. priced chain. With trade ties with the U.S. and other nations “I think she [the customer] is hoping 3 strained, China is working to reassure the world to see a competitive price to see she’s it’s still the best place for foreign investors. getting a deal,” Krill said, noting AnnTaylor Stores Corp. saw a items such as cardigans, which can Kay 38 percent drop in comp-store 3 The International Trade Commission found that be worn with different looks, will Krill sales in the second quarter. imports of certain woven ribbon from China be promoted below their original and Taiwan were dumped on the U.S. market. price. “I think that’s a better strat- riod. Excluding $31.1 million in INNERWEAR: An outdoor swimming pool will egy than markdowns.” pretax restructuring charges, s 8 give a nod to a bumped up beachwear focus Krill said the Ann Taylor division EPS was 6 cents, 3 cents above at the upcoming Mode City show in Paris. would have select full-priced promo- the Wall Street consensus esti- tions, in addition to testing storewide mate carried by Yahoo Finance. 9 ACCESSORIES: Rebecca Minkoff is coming out interest to drive traffic, particularly on Net sales declined 20.6 percent from behind her studded handbags to connect the weekends. to $470.2 million, from $592.3 million a with customers and grow her business. “What I want to get across is that we have year earlier, as quarterly gross margin was 52.4 Invista Inc. has joined forces with Lane Bryant very versatile, fashionable items for customers percent of sales, even with last year, because of 12 of all ages,” she said, noting the company has “conservatively positioned inventory and im- stores to create the Cacique Back Smoothing downplayed its dressier items going into fall proved performance at Loft.” Bra using Lycra 2.0 tape garment technology. and holiday. “No one is buying something for “We have strategically positioned our fall EYE one occasion.” merchandise receipt plans conservatively, with With a 38 percent decline in quarterly com- an emphasis on preserving gross margin in a 4 The madness surrounding the collections doesn’t parable-store sales, the Ann Taylor brand has soft consumer spending environment that is ex- start until next month, but Calvin Klein’s soiree at “clearly felt” the impact of the economy, she pected to continue to affect our top line,” Krill Saks felt like a warm-up to fashion week. said. This was partially offset by “better-than- told analysts on a Friday morning conference Classified Advertisements............................................................................................14-15 expected” sales at the company’s value-orient- call, adding that third-quarter sales and gross TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS ed chain, Loft, as shoppers were enticed by the margin rates are expected to improve slightly [email protected], USING THE INDIVIDUAL’s NAME. store’s “newness,” especially in the knit and from the second quarter. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 woven categories, Krill said. With emphasis on Investors were encouraged by both the com- FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. leaner inventories, Loft experienced a 15.4 per- pany’s performance and its assessment and sent VOLUME 198, NO. 40. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in March, April, June and cent comp decrease for the quarter, giving the shares up 62 cents, or 4.8 percent, to $13.44 in August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance company a total comp decline of 22.5 percent. trading Friday. As recently as July 13, they’d Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé According to Jeffries & Co. Inc. retail analyst traded below $7. Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and Randal Konik: “In our view, second-half sales For the first half, Ann Taylor had a net loss of at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services need to improve materially for shares to move $20.3 million, or 36 cents a share, versus a profit Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO higher. We believe Loft is on a positive path of $55.1 million, or 93 cents a share, in the com- West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK while Ann remains a work in progress.” parable 2008 period. Revenues slid 24.2 percent ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or For the quarter ended Aug. 1, the New York- to $897 million from $1.18 billion. visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the based firm reported a net loss of $18 million, or The retailer this year plans to close 53 stores Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, 32 cents a diluted share, versus a profit of $29.3 and open 14 stores, shrinking its total square you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy million, or 50 cents a share in the year-ago pe- footage by about 3.6 percent. of new subscription will be mailed within four weeks after receipt of order. 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