ROUND SQUEEZE HOME TWO PLAY AGAIN OSCAR DE LA RENTA ART BASEL MIAMI GIAMBATTISTA DOES ANOTHER HITS ITS HIGH VALLI REVEALS COLLECTION FOR NOTE WITH PACKED PLANS TO OPEN A THE OUTNET. PARTIES GALORE. MILAN FLAGSHIP. PAGE 11 PAGE 10 PAGE 8

SPINNING OFF LANDS’ END Lampert’s Sears: An Unwinding Tale By VICKI M. YOUNG

TIME APPEARS to be running out for Edward S. Lampert. Lampert is chairman and chief executive of- ficer of Sears Holding Corp. and chairman of ESL Investments, which holds a 48.4 percent stake in MONDAY, DECEMBER 9, 2013 Q $3.00 Q WOMEN’S WEAR DAILY Sears. Last week he faced a blow when Goldman WWD Sachs pulled $3.5 billion out of ESL, cutting the funds ESL has under management by more than 60 percent and, as a result, reducing his stake in Sears to below 50 percent since part of the payout was in Sears stock. On Friday, Lampert had to once again shuffle Sears’ assets in order to bolster the ailing retailer’s balance sheet. The hedge fund manager is spinning off Lands’ End, making that division a public company once again. [For more on the spin-off, see sidebar, page 7]. No word yet on the future of Sears Auto Center busi- ness, which the company has been considering divest- ing to raise further funds to keep Sears operating. Even after the latest spin-off, Lampert will still have 48.4 percent of Lands’ End and there is little doubt he and his investors have profited handsomely Gaucho from the Sears investment. While the shares Friday closed down 3.78 percent to $48.09, that comes off a high during Lampert’s ownership that was once $195.18, when the stock rocketed as Wall Street ap- plauded the financier’s asset sales and other moves. As part of his financial wizardry, Lampert in 2006 Cool transferred ownership of Sears’ Kenmore, Craftsman and DieHard brands to KCD, a bankruptcy-remote en- Jack McCollough and Lazaro Hernandez tity. The entity now charges Sears a royalty fee to li- gave their Proenza Schouler collection cense the brands. The $1.8 billion securitization bond a South American bent. Working in an deal, backed by the brands’ intellectual property, was then sold to a Bermuda-based insurance company that interesting mix of fabrics, is also a Sears subsidiary, according to a source famil- they pulled off a look iar with the transaction. that was easy and Lampert’s previous sales of Sears assets and store polished. Here, a 2014 closures include: Sears Canada’s sale of eight properties cotton jacquard SEE PAGE 6 and velvet coat PRE-FALL — worn over a COLLECTIONS plongé leather top Upbeat Holiday Seen and culottes — that loosely resembled a Despite Europe’s Woes Mexican blanket. For more By WWD STAFF pre-fall, see pages 4 and 5. PARIS — ’Tis the season to be jolly for most European consumers. Shoppers in 18 countries, mostly in Eastern and Western Europe, are ready to increase their budgets for the end-of-period for the first time since 2008, according to an annual Christmas study by Deloitte. They plan to spend on average 450 euros, or $613, a rise of 0.7 percent from the same period last year. There is a stark divide between Northern and Southern Europe, though, with the latter still reel- ing from the impact of prolonged austerity measures. And while things are expected to improve, no one is popping the vintage French Champagne just yet: As in the U.S., the holiday shopping patterns in Europe are decidedly mixed. While Germans plan to up their budgets by 6.7 percent and the Swiss by 3 percent, French consum- ers will be paring back their spending by 0.9 percent, Italians by 2.4 percent and the Greeks by 12.8 percent, the report found. Books remain the most popular item, accounting for 31 percent of planned gifts, followed by chocolate (28 percent), cosmetics and perfume (20 percent), CDs (17 percent), cash (16 percent) and clothing and shoes (16 percent), Deloitte said. The European Central Bank, or ECB, forecasts growth in the 17-member euro zone will increase by a modest 1.1 percent in 2014 after a projected decline of PHOTO BY RODIN BANICA 0.4 percent this year. But ECB president Mario Draghi SEE PAGE 12 2 WWD MONDAY, DECEMBER 9, 2013 WWD.COM

Traffic, Promotions Weigh on AEO THE BRIEFING BOX in the firm’s North American mainline stores. “We By VICKI M. YOUNG need to deliver stronger assortments and ensure we IN TODAY’S WWD have compelling innovative key items at outstanding SHARES OF American Eagle Outfitters Inc. fell 9.5 value. In order to win, we need to be differentiated percent Friday after the company reported declines and deliver excellence in trending quality combined Julie Macklowe, Danielle in third-quarter results and updated fourth-quarter with a great customer experience,” he said. Schriffen and Yvonne guidance below analysts’ consensus estimates. While Hanson said the company has been work- Force Villareal at Aby For the three months ended Nov. 2, net income ing on initiatives to improve performance in 2014, Rosen’s party. For was down 68.3 percent to $24.9 million, or 13 cents a he expects “conditions to remain challenging and more, see page 10 diluted share, from $78.6 million, or 39 cents, a year we’re planning accordingly.” and WWD.com. ago. EPS on a GAAP basis includes a non-cash charge The company said fourth-quarter diluted earn- of 6 cents a diluted share in connection with the plans ings per share are expected in the range of 26 cents to close its Warrendale, Pa., distribution center after to 30 cents, based on a “midsingle-digit decline” the chain opens its new facility in Hazelton, Pa. Total in comps. Analysts were expecting 39 cents as the net revenues also fell by 5.8 percent to $857.3 million consensus estimate. That’s compared with fourth- from $910.4 million. Consolidated comparable-store quarter EPS of 55 cents a year ago. sales, including its direct channel, fell 5 percent ver- American Eagle is the latest retailer in the

sus a 10 percent gain last year. teen space that has reported declines in third- MORELAND Robert Hanson, chief executive officer, said dur- quarter results. LEXIE ing a conference call to Wall Street analysts, “We According to Jeff Edelman, a former retail analyst continue to operate in the most challenging sector and now director of retail and consumer products ad- BY of retail where there has been intense promotional visory services at McGladrey, the problem faced by all PHOTO competition and tepid consumer spending. This the teen retailers is one regarding merchandising. has led to weak store traffic and the high level of Separately, the retailer said that Chad Kessler promotional activity.…In the third quarter, good ex- will be joining the company as chief merchandising Edward S. Lampert had to once again shuffle Sears Holdings pense management was offset by top-line pressure and designer officer for the core American Eagle Corp.’s assets in order to bolster the ailing retailer’s balance and weak merchandise margins.” brand in early February. He succeeds Fred Grover, sheet by spinning off Lands’ End. PAGE 1 He added that business conditions remain tough who is retiring after 35 years. Shoppers in 18 European countries are ready to increase their budgets for the holiday season for the first time since 2008, according to a study by Deloitte. PAGE 1 L’Oréal Stock Gains on Nestlé-Givaudan News Ralph Lauren Corp., in conjunction with Dubai Cares and “Nestlé has announced that it will make a decision By JENNIFER WEIL in 2014 for its L’Oréal stake. However, we would read Desert Palm in the United Arab Emirates, is hosting the nothing from this sale [of Givaudan shares] into a pos- first UAE Ladies Polo Tournament. PAGE 5 PARIS — L’Oréal stock rose strongly Friday follow- sible decision concerning what Nestlé will do,” said J. ing news that Nestlé will sell its 10 percent stake in Safra Sarasin in the note. “Sale to L’Oréal or mainte- Tiffany & Co.’s Michael Kowalski discusses the importance Givaudan, the Swiss fragrance and flavors supplier. nance of status quo are the likeliest scenarios.” of China’s burgeoning diamond and luxury market to his The French beauty giant closed the day up 3.6 per- The bank also reiterated its neutral rating on company’s growth plans going forward. PAGE 8 cent to 126.80 euros, or $173.64 at current exchange, Givaudan and Nestlé. as market speculation percolated yet again that For L’Oréal’s part, company chairman and chief Giambattista Valli in February will officially unveil his first Nestlé could divest its 29.3 percent stake in L’Oréal executive officer Jean-Paul Agon neither confirmed store in his home country of Italy. PAGE 8 in April, once a shareholder pact expires. nor denied during a financial analyst meeting in As reported, Goldman Sachs is managing the sale August that the French beauty giant might buy back Christian Louboutin on Wednesday will open a Tokyo of 926,562 shares of Givaudan through an acceler- Nestlé’s stake in the firm. He said L’Oréal has con- flagship in the city’s Aoyama neighborhood. PAGE 9 ated book-building transaction. The stake is valued siderable financial wherewithal due to a 9 percent at about 1.1 billion Swiss francs, or $1.23 billion. stake in Sanofi, the French pharmaceutical concern Ministers from 159 countries on Saturday agreed on Nestlé acquired the company’s whose 2012 sales were 34.95 billion a package deal of market-opening measures worth an shares in 2002, when it sold the food euros, or $44.94 billion at average estimated $1 trillion to the global economy. PAGE 9 ingredient concern FIS to Givaudan exchange, and positive cash. for a combination of cash and stock. “We will see what the opportu- Oscar De La Renta’s second collection for The Outnet “Nestlé has been very satisfied nities are to use it, but I am confi- will go on sale Dec. 17 on the Web site. PAGE 11 with its holding, but believes now 29.3% dent there will be opportunities,” is the appropriate time to divest,” SIZE OF NESTLE’S STAKE he said at the time. “We’ve always the company said. said that our stake in Sanofi was fi- Franca Sozzani on Wednesday hosted a dinner to honor IN L’OREAL. “It was not a strategic invest- nancial, not strategic. We could use Michael Kors and celebrate the opening this fall of his ment,” said Patrick Hasenböhler, it if an opportunity were to arise.” Corso Vittorio Emanuele boutique in Milan. PAGE 11 an equity analyst at J. Safra Sarasin. Over the past few months, L’Oréal has been acquis- In a note, the bank said Nestlé’s investment in itive. It purchased men’s skin-care brand Nickel, and Marc Jacobs discussed leaving Louis Vuitton and other Givaudan was a “success” and deemed it an appro- the company has been in talks with Shiseido Co. Ltd. subjects this week in a chat with Peter Marino at London’s priate time to sell the stake, since the company’s to buy the Carita and Decléor brands, for instance. Tate Modern. PAGE 12 “valuation appears rather rich now, so the stock’s At L’Oréal, the existing shareholder agreement stip- potential for making further gains appears limited, ulates that neither Nestlé nor the Bettencourt family, ON WWD.COM at least in the near term.” which owns 30.5 percent of the French beauty giant, Givaudan, meanwhile, closed down Friday 2.1 can increase its stake in L’Oréal during the lifetime EYE: Aby Rosen’s annual Art Basel dinner party drew a percent to 1,210 Swiss francs, or $1,354.35. of Liliane Bettencourt, the daughter of the company’s crowd that included Lenny Kravitz, Damien Hirst, Tommy Nestlé is Givaudan’s second-largest shareholder, founder who is now 91, and six months after her death. Hilfiger and Karolina Kurkova. For more, see WWD.com. and the company recently sold most of its stake in Jenny However, the parties are free to sell their shares, each Craig to North Castle Partners for an undisclosed sum. of them having conceded the other the right of first re- The news regarding Givaudan reignited speculation for fusal until April 24, 2014. Following that date, the par- CLARIFICATION some that Nestlé could sell its stake in L’Oréal. ties may offer the stakes to any third entity. Bernard Arnault and Anne de Maistre (née Dewavrin) are the parents of Delphine and Antoine Arnault. This information was unclear in a story on page one, Friday.

TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS Lalonde Exits Post at Ralph Lauren [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. DANIEL LALONDE, president of Ralph having spent half of his professional career COPYRIGHT ©2013 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Lauren International, has left the company. in the U.S. and the other half in Europe. VOLUME 206, NO. 117. MONDAY, DECEMBER 9, 2013. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, May, June, August, October and December, and two “I decided to leave due to changes in At Ralph Lauren, Lalonde had the additional issues in February, April, September and November) by Fairchild Fashion Media, which is a division of Advance the leadership team,” Lalonde said. responsibility for overseeing the firm’s Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Executives at Ralph Lauren Corp. de- international growth. He joined the com- Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, NY, clined comment. pany in January 2012 after a 10-year stint and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Lalonde submitted his resignation at LVMH Moët Hennessy Louis Vuitton. Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 6356,

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Lauren as chairman and chief execu- PASHA and before that was president and ceo of address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office

BY Daniel alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within tive officer. That was in September, Louis Vuitton North America from 2006 one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever which also saw the elevation of Jackwyn Lalonde to 2010. He joined LVHM in March 2002 dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new PHOTO from Nestlé. subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production Nemerov to president and chief operat- correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please ing officer. She succeeded Roger Farah, who be- There was no word on whether Lalonde’s former call 212-630-5656 or fax the request to 212-630-5883. For all request for reprints of articles please contact The YGS came executive vice chairman. Part of that inner- post at Ralph Lauren would be filled, but sources Group at [email protected], or call 800-501-9571. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.wwd.com/subscriptions. Occasionally we make our core team that includes Nemerov and Farah is in the industry said that’s not likely given the new subscriber list available to carefully screened companies that offer products and services that we believe would interest Christopher Peterson, the firm’s chief financial of- executive structure at the company. our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 6356, Harlan, IA 51593 or call 866-401-7801. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR ficer, who took on the additional posts of executive Lalonde declined to disclose his next move, DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED vice president and chief administrative officer. other than that he is mulling over some options in TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, Lalonde has extensive experience in building glob- the global luxury space that include fashion and UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND al brands and holding c-level leadership positions, consumer goods. — V.M.Y. OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. JANUARY 29, 2014

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Proenza Schouler: Proenza Schouler Gucci Evolving their spring silhouettes through a South American lens, Jack McCollough and Lazaro Hernandez provided a study in Gaucho cool for their Proenza Schouler collection, sliced with fascinating fabric play and a vaguely Seventies sophistication. The result was easy and polished, as shown with the flocked pieces including a black-and- white viscose crepe top teamed with a double- faced wool coat, draped suede skirt and cool leather boots. For evening, McCollough and Hernandez amped up the razzle-dazzle but still kept it restrained. A terrific trompe l’oeil top-and-skirt dress was decked out in circular sequins and beads for a look that managed to pull off a chicly conservative vibe.

Gucci: Creative director Frida Giannini went back to the basics for pre-fall. She delivered a lineup of sleek daywear staples with considerable volume and put the embellishments of recent collections behind her. Working tone-on-tone colors (fuchsia, orange, yellow) paired with black and navy blue, Giannini focused on wearable looks with a masculine feel. The tailored outerwear — shown over stretch wool pants in mostly cigarette shapes — included a roomy fuchsia wool caban worn over a maroon cashmere V-neck sweater and black shirt, its front in leather and back in cashmere. A touch more feminine was the sleeveless minidress in silk cadi with a leather collar.

Thakoon: Thakoon Panichgul riffed on men’s shirts for pre- fall, but there was little that read mannish in the charming lineup. Rather, the classic got tweaked, twisted and injected with color. On a tunic, Panichgul seemed to haphazardly combine striped and floral fabrics in an asymmetric pattern. The two could have easily clashed but he delivered a look full of youthful appeal, especially when paired Pre-Fall 2014 with loose-fitting pin- striped pants. Panichgul cited Air Force jackets as another inspiration. His take — an orange floral jacquard bomber lined in solid orange — worked beautifully over a red dress that melded a leopard and flower print. WWD MONDAY, DECEMBER 9, 2013 5 WWD.COM Gucci Thakoon FASHION SCOOPS

LAUREN OF ARABIA: Ralph Lauren to his inauguration committee. Corp., in conjunction with The New York mayor-elect Dubai Cares and Desert Palm has named Gabrielle Fialkoff, in the United Arab Emirates, president and chief operating is hosting the first UAE Ladies office of Haskell Jewels, as Polo Tournament, which kicks Chair of Inauguration. Fialkoff off Tuesday and runs through will lead the inauguration Friday. This is the first such committee in planning and women-only event in Dubai, executing de Blasio’s official and female polo players will welcome, which kicks off with be outfitted in special mesh the official swearing in at Ralph Lauren shirts, which are midnight on Dec. 31, followed only available at the designer’s by a ceremonial swearing in boutiques in Dubai and the following day. She will Abu Dhabi also oversee all other related festivities throughout the city. Fialkoff has held her position at Haskell Jewels since 2002. Before entering the fashion industry, Fialkoff played the political field, including a stint as finance director for Hillary Rodham Ralph Lauren’s shirts for Clinton’s Senate teams participating at the UAE race in 2000. Ladies Polo Tournament. She also served as finance chair during de Blasio’s mayoral campaign. Members of the inaugural committee beginning today. Twenty percent include Sarah Jessica Parker, Susan of proceeds from the sale of Sarandon, Alan Cumming and author these shirts will benefit the Junot Diaz. — LAUREN MCCARTHY UAE-based philanthropic organization Dubai Cares. NEW SPECS: Oliver Peoples The event is under the unveiled new custom sunglasses patronage of Her Highness Sheikha designed in collaboration with Thakoon Maitha bint Mohammed bin Rashid the writer Carole Sabas of “The Al Maktoum, who also serves as Fashion Friendly Guides” in captain of Team UAE. Miami Beach Thursday morning — MARC KARIMZADEH to coincide with a Miami edition of her guide. The booklet came MOVING DAY: When students at together after a successful Parsons The New School for collaboration between the Design end their fall semester brand and the writer on a on Dec. 16, a storied era will guide centered around Los come to a close for its main Angeles. The sunglasses are a campus building at 560 Seventh special edition of its so-called Avenue, which is shuttering Braverman style, which carry and was recently sold to real rainbow-mirrored lenses. Sabas estate developers. In January, was asked about the differences returning students will begin between L.A. and Miami. “Los classes in The New School’s Angeles is more bohemian, just-completed, state-of-the-art creative and very about being University Center building at yourself in this crazy natural life, 65 Fifth Avenue. To mark the connected with some new age departure from 560, Simon philosophy,” she said. “Miami is Collins, dean of the School of all about being fancy, very put Fashion at Parsons, is hosting together. They’re really obsessed a farewell party in the building with Versace and these very on Thursday for alumni and Nineties, crazy fashion stories. faculty. “I expect there to be Yo u can see people are very tears and I expect there to be dressed up and it’s 10 a.m.” laughter,” said Collins, — ERIK MAZA reeling off the names FOR MORE of designers who SCOOPS, SEE IF THE SHOE FITS: have studied in the Christian Dior has classrooms there: WWD.com absorbed another Marc Jacobs, Donna creative talent Karan, Jason Wu, Isaac into its sprawling Mizrahi, Derek Lam, Jenna product universe. Lyons, Jack McCollough and Lazaro According to sources, the

PAVESI Hernandez. Karan is expected at French house has tapped Thursday’s fete, as are Anna Sui, Francesco Russo for women’s Chris Benz, Jeffrey Banks and Carly footwear collections. In GIOVANNA Cushnie and Michelle Ochs. Collins September, Russo launched a

FOR MORE PRE-FALL AND has printed up T-shirts for namesake high-end footwear COVERAGE, SEE attendees that read either “You label and opened an atelier

WWD.com/ EICHNER never leave Parsons,” or “School on Rue de Valois in Paris. runway. of Fashion 560,” courtesy of Previously, from October 2008 STEVE Esprit. Presumably, come the to February 2013, Russo was new year, Parsons will also have creative director at Italian shoe

BANICA, to think up a new handle for and accessories brand Sergio its Twitter account, which is Rossi. Reached by phone,

RODIN Parsons560. — DAVID LIPKE Russo declined to comment. BY Dior officials could not be THE MAYOR’S CHOICE: Bill de reached for comment. PHOTOS Blasio is adding some sparkle — ALESSANDRA TURRA 6 WWD MONDAY, DECEMBER 9, 2013 As Sears Shrinks, Its Future {Continued from page one} tition from U.S. retailers gaining a foot- last month for $300.3 million; Sears hold in Canada intensifies. Most of the Edward S. Lampert Hometown and its Outlet business was retailer’s more valuable real estate in spun off in 2012, raising $346.5 million from Canada, according to these individuals, a rights offering and garnering a $100 mil- has been sold off, leading to speculation lion cash dividend from Hometown, and its that Sears Canada will eventually, like Orchard Supply Hardware Stores unit in other Sears Holdings, become extinct. 2011 was spun off as stock to shareholders. James Schaye, ceo of asset disposition Spin-offs aren’t always a sure thing for firm Eaton Hudson, said of Sears, “They investors, at least those who invested in are slowly becoming irrelevant. What’s left Sears. Some investors are said to have re- is just the real estate assets. He still has ceived their return in the form of stock in enough good ones to last a few years. This Orchard Supply Hardware Stores in June company is not going away tomorrow, but only to find themselves holding worthless stock when Orchard filed for bankruptcy protection a week later. Some observers have always believed By the Numbers that Lampert’s purchase of Kmart and Sears was less about retailing and more a 2005* 2012 real estate play, despite Lampert’s protests over the years that he has been working at Revenues initiatives to change Sears’ retail image. $54 $39.9 Lampert acquired Kmart out of bank- billion billion ruptcy in 2003 via control of a bond that he acquired for less than $1 billion, and two years later acquired Sears, Roebuck and Co. for $11.5 billion. The acquisi- Net Income $789 -$930 FEANNY/CORBIS tion of Sears also gave him Lands’ End, a million million public company that Sears, Roebuck ac- NAJLAH

quired for $1.8 billion. The merged entity BY was renamed Sears Holdings Corp. While Brian Sozzi, ceo and chief equi- ties strategist at Belus Capital Advisors, 2,300 2,019 PHOTOS said of Lampert’s merchandising skills,

U.S. full-line U.S. full-line STORE “a Sam Walton Eddie Lampert is not,” Stores

one retail credit analyst was just as quick SEARS to say, “Eddie’s done a good job of creat- 1,100 54 AND ing shareholder value. Everybody’s made U.S. specialty U.S. specialty money on their investment.” Still, there now is the growing real- LAMPERT ization that whatever shareholder value SOURCE: SECURITY AND EXCHANGE COMMISSION FILINGS. Lampert’s been able to garner for inves- * PRO FORMA RESULTS SHOWN. SEARS AND KMART MERGED ON of Sears specifically, said of the depart- Rosenthal & Rosenthal, said the liquid- MARCH 24, 2005. tors has come at the expense of the fu- ment stores in general who occupy those ity is fine. “It hasn’t gotten significantly ture of the Sears and Kmart nameplates. it will slowly fade away into the sunset. It anchor positions, “The interesting part is worse,” he said. Then there is the impact on the rest of is a slow monetization of assets. Eventually that some of these big-box leases are old Allan Ellinger, senior managing direc- the industry, such as Sears’ vendor sup- there will be a bankruptcy filing.” leases at low rent that go out for a long tor at advisory firm MMG, said of the ven- pliers and their employees, when the Sozzi said, “This is a liquidation. time. These leases also contain clauses dor community, “Everybody’s concerned operation can no longer sustain itself There’s still time. The real estate assets that give the tenant much control over because right now there’s a great deal of through good old-fashioned cash flow will be monetized to keep the lights on at the center and the space. There are uncertainty.” He noted that the concern once the key assets have been sold. the stores, but over the next three years many developers looking to redevelop has been centered on the future of Sears In its most recent earnings report, for from today, this company has to start gen- the space and are offering money to take and its rival J.C. Penney Co. Inc. He the nine months ended Nov. 2, Sears’ loss erating cash from operations.” over those locations.” pointed out many vendors, branded and swelled to $1 billion, or $9.49 a diluted Sozzi is one of those who believes the Graiser explained that the space that private label, would have a hard time share, compared with a loss of $441 mil- plan from the get-go, when Lampert ac- the department stores occupy could eas- finding a way to make up the volume that lion, or $4.16, in the same year-ago period. quired Kmart, was a real estate play. “If ily become entertainment centers in the would be lost if either of the two retail- Looking ahead, there have been you go back to his start at Kmart, he has mall housing restaurants and theaters, ers was to shutter a significant amount of rumblings in the real estate market not been a true merchant. There’s a dis- while an add-on development becomes stores or go bankrupt. that Sears Canada isn’t for the long connect here at how to run a merchan- the new home of a junior retail anchor. Ironically, the scuttlebutt in the mar- haul. Sears Canada recently said it will dising business,” he said. He also noted that this process takes ketplace is that Sears seems to be losing close its flagship at the Eaton Centre in One big question is what’s left of the time since new permits would need to be market share in apparel purchases to Toronto, considered by many a top-notch real estate locations and whether there secured to convert the retail space into J.C. Penney, now that Penney’s has been location. That move, among others, has are enough good locations in the B and C mixed-use spaces. promoting heavily over the last several led many to believe that Sears Canada is malls to get some value back. For now, Sears doesn’t have to worry weeks and because many of the brands likely to completely disappear as more of Andrew Graiser, copresident at A&G about liquidity issues. J. Michael Stanley, that were unavailable at the chain, such the real estate gets sold off and compe- Realty Partners, who declined to speak managing director at factoring firm as St. John’s Bay, are back.

cant opportunities in the years ahead to create value March 15, 2006 through a combination of better operating performance I view Sears Holdings as a $55 billion revenue, 350,000 Eddie’s Epistles and disciplined use of our capital and balance sheet. person start-up — and I continue to believe that we have the challenges, excitement, pace of change, and September 8, 2005 opportunity for success that characterize a start-up. By EVAN CLARK Greatness requires the ability to change and adapt; we We will not be bound by the dictates of past practices. are just beginning....We understand that change engen- Instead, we will question, test, evaluate, and change…. COPYING THE STYLE of his idol Warren Buffett, ders criticism and uncertainty, but we also understand We are investing in our stores where the investment Edward S. Lampert has chosen over the years to that we may need to make changes both to our approach makes sense — in other words, where it improves the weigh in on the state of Sears Holdings Corp. in and to our resources to demonstrate with clarity the se- experience for our customers and associates and leads written form. His letters, mostly to shareholders riousness of our purpose and the strength of our vision. to attractive returns….Warren Buffett makes clear that but sometimes to company associates, are usu- We know we cannot please everybody, but we believe his goal is to increase the per-share value of Berkshire ally long and varied and together add up to nearly that people generally value clarity and consistency. Hathaway. Similarly, our goal is to increase the per- 50,000 words. They leap from the topic of the day — share value of Sears Holdings. Hurricane Katrina, financial regulation or the 2008 December 6, 2005 Super Bowl champs — to issues of recurring inter- Being a learning company also means appreciating March 1, 2007 est, including the value of media commentators and frankness and being willing to recognize where our We will never bat 1.000 — no company will. Every year Lampert’s own iconoclastic philosophy on investing ideas have not played out as expected — so that we can will, like 2006, bring its own mix of strong performanc- in stores. Most of the letters end in the same way, refine and change course. This quarter’s performance es and weak ones….Some commentators have asserted “Respectfully, Edward S. Lampert.” in Sears apparel is one example of this….Sears attempt- that we want to shrink the company, but that is simply Here is Lampert in his own words. ed to move its apparel offering to be more “fashion not so. No great company would aspire to become forward,” relying on the introduction of new proprietary smaller, and we certainly do not. But before embark- June 7, 2005 brands. Customers have not yet embraced the new, ing on a growth plan, it is critical to provide a sound We will opportunistically pursue investments in, and more fashion-forward brands. In addition, an unseason- base from which to grow. To this end, we have set out acquisitions of, other companies, joint ventures and ably cool spring and warm fall depressed apparel sales to improve the profitability of our business model. Our strategic alliances. We believe that we will have signifi- throughout the industry. objective is disciplined growth. We do not want to grow WWD MONDAY, DECEMBER 9, 2013 7 WWD.COM Lands’ End Heads to Market huge Lands’ End shop inside the Kmart in Gets Murky By DAVID MOIN Bridgehampton, N.Y., near where Lampert tichannel sales increased 17 happens to own a home and where he can Sears’ business in Canada is said percent over the prior year.” AT SEARS, Lands’ End is as good as it keep on eye on the brand. It’s the only to be struggling to stay afloat. The spokesman also said of gets in apparel. And Edward S. Lampert Kmart selling Lands’ End, which is pricy Lampert’s plan for Sears: “Our knows it. for the discounter. transformation is centered on Lampert has decided to spin off the Eighty-two percent of Lands’ End sales our Shop Your Way members. 50-year-old Lands’ End as a public com- still come from phone or online orders. Our priority is on building re- pany trading on the Nasdaq Stock Market Lands’ End shops inside Sears accounted lationships with our most loyal under “LE,” according to a regulatory fil- for 16 percent of the brand’s revenues, repeat customers regardless of ing Friday. Lampert would control about leaving just 2 percent generated by the where or how they shop. We’re 48.4 percent of Lands’ End after the spin- handful of stand-alone doors; 83.7 percent shifting Sears Holdings from a off and maintain significant influence come from the U.S. business that has historically over the company. There will be some Ramping up Lands’ End digital opera- focused on running a store other big Lands’ End investors, including tions and its uniform business are stated network into a business that Fairholme Capital Management with a 17 priorities, and the brand has been pump- provides and delivers value percent stake, and Baker Street Capital ing up its holiday offerings. It’s excelled by serving its members in the Management, with 6.7 percent. manner most convenient for Since Sears took ownership in 2002, them: whether in store, in Lands’ End hasn’t exactly flourished, home or through digital devic- though there’s still a strong aura to the es. We are driving this trans- brand, which was founded by the late Gary formation by investing in ca- Comer. It took years for Sears to figure out pabilities to enable members how to integrate the brand on its selling access to the broadest possible floors and online before growth could be assortment of products and contemplated. services, enhancing our mem- Last spring, Lampert told WWD, “We bership benefits associated haven’t had enough good ideas to actually with SYW, developing digital put money behind. I’m sort of generalizing,” and social relationships with meaning the lack of good ideas is an issue our members, using data and relevant to Sears Holdings Corp. overall. analytics to make targeted of- However, Lampert has not let Lands’ Lampert acquired Kmart fers and decisions delivered in End stagnate to the degree Sears stores out of bankruptcy in 2003. real time and expanding our have. When it comes to running Lands’ reach through marketplace End, insiders have said Lampert’s been Ramping up Lands’ End’s digital operations is a and delivery options.” hands-off, while he’s publicly expressed priority for the company. Although the company has support for the view that the brand can been criticized for not reinvest- offer much more than just gingham shirts, most in outerwear and swimwear. ing in its stores, the spokesman monogrammed canvas totes and squall If there are any criticisms of Lands’ said, “We invest hundreds of jackets, and that home, kids, men’s wear End, it’s that it hasn’t evolved enough, has millions of dollars every year and fashion-driven items can become been slow to extend its category reach, in the member experience.” bigger. Technology in product design is and to adapt its all-American, clean-cut, “The merchants and the peo- progressing, and the company has been classic image, which has long resonated When Sears reported third-quar- ple running Sears have ideas about open to testing concepts and even imple- with consumers in the U.S. Some other ter earnings last month, Lampert what they want to do, and they can menting some. For example, Canvas, an U.S. brands, such as Ralph Lauren and said it is focusing its business to never execute,” said one major sup- offshoot of Lands’ End, was launched in Tommy Hilfiger, have successfully expand- a “member-centric integrated re- plier. “There’s a lot of good people at late 2009. It offers more fashion-oriented ed abroad, though Brian Sozzi, chief exec- tailer leveraging Shop Your Way to Sears that were formerly with Macy’s casual clothing with younger fits and a utive officer and chief equities strategist benefit from the landscape.” West and Mervyns. But the money is younger attitude. at Belus Capital Advisors, said,“I don’t be- restricted. They can’t be aggressive Lands’ End remains profitable, though lieve there’s much room for growth for the with anything. They run Sears way in 2012, net profits fell 34.6 percent to brand since the opportunities, particularly too lean. It’s frustrating for them and $49.8 million as sales retreated 8.1 percent to take it overseas, seems to be limited.” frustrating for us. There are so many $1.59 billion. Adjusted earnings before in- With the spin-off, Lands’ End won’t be other retailers with great ideas but terest, taxes, depreciation and amortiza- totally free of Sears, which plans to lease $1.6B Sears can’t get any momentum.” tion slipped 25.7 percent to $107.7 million. space in its stores to Lands’ End where the SEARS’ CUMULATIVE The source did say that Sears Other possible growth areas are inter- store lease permits subleasing. NET LOSSES SINCE 2005. has been focused on building up its national and freestanding stores, where Sears said the spin-off would simpli- e-commerce, while there’s no sense the brand has barely scratched the sur- fy both the Sears and Lands’ End busi- that other parts of the retail opera- face. There are only 16 stores averaging nesses, allow management of each com- According to a Sears spokesman tion are being fueled for growth. 8,000 square feet, called inlets, with 13 pany to focus better and give investors on Friday, Shop Your Way has “10s While e-commerce seems to show in the U.S., two in the U.K. and one in more options. It also puts more money in and 10s of millions of members.” some life, “I do know the brick-and- Germany. Inside Sears, as of Aug. 2, there Lampert’s pocket. He provided some statistics, noting mortar is suffering,” said the sup- were 275 Lands’ End shops, averaging — WITH CONTRIBUTIONS FROM E.C. that the “number of members shop- plier. “The stores look bad. They 7,400 square feet. Curiously, there’s one AND VICKI M. YOUNG ping four-plus times in the past 12 are not willing to invest in them.” months shows a positive trend” and — WITH CONTRIBUTIONS that the retailer’s “online and mul- FROM D.M.

simply for the sake of becoming bigger. Rather, our February 26, 2009 several years, the difficult economic environment, aim is to become more profitable, and as such we need One of the unfortunate realities of the current environ- and the dramatically changing retail environment, we to ensure that any revenue growth occurs at an appro- ment is that we have closed a number of our stores dur- have generated very attractive returns for sharehold- priate level of profitability. ing 2008, and we decided in the fourth quarter to close ers since May 2003, when we assisted Kmart in its additional stores. We will be closely monitoring stores emergence from bankruptcy. November 30, 2007 throughout 2009. Our approach has been to continue to Retail is a fickle business. Nevertheless, like any other operate money-losing stores in the past so long as we February 23, 2012 business, by focusing on the long term, making decisions believed that we could restore those stores to profit- The board of directors and I look at and evaluate Sears based on facts and logic and appreciating that all deci- ability, and that the level of losses could be recovered Holdings as a portfolio of businesses, with different sions are based on many possible future scenarios, com- upon return to profitability. market positions, strengths and opportunities…. Sears panies can navigate the ups and downs of the economy Holdings has a profit problem, not a liquidity nor an and the stock market to create long-term value for their February 23, 2010 asset problem. In fact, Sears Holdings has over $20 bil- shareholders. We continue to evaluate our store portfolio, over lion of assets on our balance sheet. 2,200 Kmart and Sears Full Line stores combined, February 28, 2008 and experiment with new and different ways to February 28, 2013 I would like to start off this letter in a rather unconven- serve our customers and avoid additional store clos- The progression of the Internet and mobile technol- tional way by congratulating the New York Giants, led by ings….We have chosen to invest primarily in areas ogy is fundamentally reshaping many industries, with their young quarterback Eli Manning and by head coach of our business that we believe will yield long-term retail being one of the largest….We are rebuilding Tom Coughlin, for winning the Super Bowl….The Giants’ growth and attractive returns. These areas include Sears Holdings’ culture with an acute focus on creating story reminds me of what we went through a few years our online businesses, our service businesses, our “wow” experiences for our members and putting mem- ago with Kmart. When I first became involved with Kmart Kenmore, Craftsman and Lands’ End brands, and bers first. We will embrace feedback at every point in 2002, during its bankruptcy, the company had been some of our alternative formats like Hometown where a member comes in contact with the company. given up for dead by most industry analysts and media Stores and Outlet Stores. We know we do many things well. We are going to be commentators….Like Eli Manning, we know what it’s like proactive in reaching out to those who have great expe- to be underestimated and questioned, but we intend to February 24, 2011 riences with us and rewarding them for letting us know keep working on our game to achieve our full potential. Despite our challenging performance over the past and for allowing us to publicize them. 8 WWD MONDAY, DECEMBER 9, 2013 Tiffany Plots China Growth Plan “The company for so many years was pri- to the Chinese capital, By KATHLEEN E. MCLAUGHLIN marily focused on the U.S. domestic market starting with a small pri- and we really began our aggressive inter- vate viewing for select BEIJING — The famed Tiffany Diamond national expansion 10 years ago,” he ex- clients and celebrities at made its China entrance on Friday, going plained. “So we were very deliberate in our an exclusive club and bou- on display in a country hungry for dia- approach to the China market, and perhaps tique hotel. This is the first monds and eager to explore the compa- came to the market a little bit late compared time the Tiffany Diamond ny’s long-standing tradition of jewelry. to some of our luxury competitors.” has traveled to China and Before a preview of the exhibit, which The company invested heavily in brand is being showcased in its features the 128.54-carat yellow Tiffany education, keying on the Tiffany history new, 2012 setting, platinum Diamond and dozens of other signature and heritage, and has found success with and diamond necklace that pieces, Michael Kowalski, the company’s China’s new luxury consumer class. Up was designed for the com- chairman and chief ex- until about a decade ago, pany’s 175th anniversary The Tiffany diamond and other signature pieces from the exhibit. ecutive officer, discussed diamond engagement rings last year. the importance of China’s were relatively rare in On Saturday, the famed gem and a range to four stores in mainland China each burgeoning diamond and China. According to a re- of Tiffany’s showcase pieces featured in a year for the foreseeable future, carefully luxury market to Tiffany’s cent market report from more open exhibition, which included an choosing store locations — a decision he growth plans going forward. Euromonitor, China’s dia- original musical score written for the event said can be the most important part of

Kowalski told WWD LOVELL mond consumption has tri- by renowned Chinese composer Tan Dun. making a lasting presence. that the firm is targeting 10 pled in recent years, making Tan is famed for his film scoring, includ- When it entered the market in China, to 12 percent annual sales it second only to the U.S. ing those for the movies “Crouching Tiger, “there was a very general awareness of growth globally in the com- SHARRON That hunger for dia- Hidden Dragon” and “Hero.” Tiffany,” said Kowalski. “Building depth Michael BY ing years. China is a criti- Kowalski monds, particularly in en- Following the weekend events, the dia- around that awareness is something cal component of that mix. gagement rings, is evident mond exhibit was due to move to the Tiffany we’ve devoted a lot of effort to over the “Clearly China will be PHOTOS in what Chinese customers & Co. flagship in Beijing through Jan. 5. The last three to five years.” one of our fastest-growing markets over want from Tiffany, Kowalski said. While diamond is likely to be a hit, as Chinese con- The next step will involve building the next five to 10 years so our sales objec- diamonds account for half of the compa- sumers have been particularly drawn to yel- more awareness of Tiffany beyond en- tive for China would be in excess of that 12 ny’s sales globally, the percentage (which low and other colored diamonds. gagement rings — the company’s signa- percent corporate average,” said Kowalski. he did not disclose) is higher in China. Kowalski said the event is part of the ture six-prong setting diamond engage- Tiffany’s recent fourth-quarter sales “Diamonds are probably relatively company’s effort to educate Chinese con- ment ring is its most popular product results showed a 27 percent increase more important here to the Tiffany brand sumers about the history and legacy of offering in China. in the Asia-Pacific region, and though than they are anywhere in the world,” the brand. Sales results show it’s work- “I think there’s a natural evolution the company doesn’t break out sales fig- said Kowalski. ing thus far, and Tiffany plans to expand from the engagement business to dia- ures in specific countries, Kowalski said To capitalize on that demand, the com- in China at a deliberate pace. monds used more broadly for gift-giving China was a major driver in the rise. pany has brought its showpiece collection The ceo said Tiffany will open three purposes,” he said.

Kate Spade Saturday in SoHo. Valli to Open First Store in Italy FOR MORE IMAGES, SEE said Valli, revealing he will open two By LUISA ZARGANI WWD.com/ more stores in three years, without elab- retail-news. orating on the location. MILAN — Giambattista Valli is landing The company’s retail sales last year here. The Italian designer will officially reached 60 million euros, or $76.8 mil- unveil his first store in his home country in lion at average exchange, up 25 percent February during Milan Fashion Week, pre- compared with the previous year. ceded by a soft opening a month earlier. There are 200 points of sale that Nestled in the courtyard of a historic carry the brand and Valli said his stron- building on Milan’s tony Via Sant’Andrea, gest markets are the U.S., Canada and between Via Montenapoleone and Via Europe. He also noted the increasing

Spiga, the 1,400-square-foot space will carry performance of China, South Korea, ERICKSEN Valli’s ready-to-wear and accessories, in- Japan and Russia. KYLE

cluding handbags, shoes, jewelry and furs. Valli’s is an independent company, and BY “I had been looking for the right space his rtw is produced by Mario Bandiera’s for a long time,” said Valli, who enthused PHOTO about the street and the positioning of the store. “It’s a privilege, it’s a more dis- creet, less institutional and less show-off Kate Spade Saturday Comes to SoHo location, and the fact that it’s in a court- Andrew. The store utilizes lots of man- yard also makes it very interesting.” By SHARON EDELSON nequins and apparel hangs from bright Valli was born and raised in Rome, yellow fixtures. The store has the first studied at Central Saint Martins in NEW YORK — Kate Spade Saturday is dedicated home department. London, and after stints at Roberto painting SoHo yellow. The idea for the airport pop-up Capucci, Fendi and Krizia, moved to Paris The retailer’s first Manhattan store, came from the brand’s goal of making in 1997 where he worked with Emanuel a 1,500-square-foot unit at 152 Spring shopping fast and easy. “We asked our- Ungaro. In 2005, he launched his name- Street, stands out like a giant canary selves, ‘Where is [the customer] going sake collection, which he shows in Paris. with its storefront painted the brand’s to be at holiday time?’ Rushing through Valli opened his first store in Paris in trademark bright yellow. the airport with last-minute shopping to December 2010, followed by an acces- While the company is opening stores do. It’s an unexpected place to do some- sories boutique there last September. “I slowly and deliberately for now, Kyle thing in an unexpected way. We won’t wanted to open a store in Italy, after my Andrew, senior vice president and brand sell physical product there, but she’ll two boutiques in the country I work in. director, said Kate Spade Saturday could be able to shop through monitors with The Milan venue is another Valli house, surpass the store count of its sister brand, delivery the next day. She doesn’t have conceived as an apartment,” said the de- Kate Spade New York, which boasts 80 to carry it on the plane,” she said. signer, who worked on the project with units in the U.S. and 100 overseas. The SoHo store is Kate Spade Luigi Scialanga, the architect in charge of Meanwhile, at John F. Kennedy Saturday’s second in the U.S. after the blueprints of Valli’s two Parisian units. Giambattista Valli International Airport, there’s a shock a Houston unit. There’s a pop-up on There, the spaces are embellished with of yellow in the middle of Terminal 5, Gansevoort Street in the Meatpacking Yves Saint Laurent drawings, Fornasetti Bologna, Italy-based BVM SpA, parent JetBlue’s hub. “It’s like a sunny little oasis District and one in Los Angeles. The brand mirrors and furniture designed by Valli. of Les Copains. The designer values his in the middle of a teeming terminal,” said also has six units in Japan and a store in The Milan unit will also reflect Valli’s freedom. “It’s especially important to Andrew. Both the store and airport pop- Singapore. “We’ve been tweaking the vision for the city. The designer said he start alone, to shape one’s DNA without up play on Kate Spade Saturday’s tech- store design since we opened in Tokyo in did “not like a standardized” model for constrictions, and be loyal to yourself,” he infused concept. The store has a semicir- February,” Andrew said. “We’re making it his stores. The Milan venue will echo said, noting how he launched his couture cular bar with a charging station, iPads more user friendly to shop. Something we Italy’s Fifties and Sixties, he said, adding line in 2011, when it was a bold move to and a customization tool for personaliz- learned from the Gansevoort Street pop- that he has bought an “extraordinary” do so. “But it’s been successful. You have ing Weekender bags. There’s digital sig- up is we like the cool vibe we have there. Italian table from the 18th century for to take risks at difficult times,” he said. nage throughout and also some low-end We’re using pop-ups to generate aware- the store, which he defined as “eclectic.” Valli said one can also remain indepen- touches such as a neon sign that reads ness. We’ll keep them open for now.” The boutique will also offer a bespoke dent with a partner. “It depends, look at “Saturday Is Dance Parties” and neon ar- Products universally appeal to con- service for exotic leather skins, which [Moncler chairman and creative director] rows hanging from the ceiling highlighting sumers across cultures and climates. will allow clients to place custom orders Remo Ruffini, he’s remained independent new products and gifts of the week. For a “Our bestsellers here are our bestsell- for the Valli bags and shoes. Books, maga- [working with funds as shareholders].” vintage touch, a record player plays music ers in Japan and Singapore,” Andrew zines, and Cire Trudon candles dedicat- Valli has been designing Moncler Gamme curated by Amoeba. said. “The Weekender bag is a universal ed to Positano will also be available. Rouge for six years and was pleased with Kate Spade Saturday launched as favorite. The slip-neck T is universally “Opening a store is the best way to being part of the company’s history, in light an e-commerce business initially. “One loved. Shoes and dresses have been show one’s own universe, its philosophy of its pending public listing on the Italian of the challenges online is romancing great and anything in our black-and- and the lifestyle which comes with it,” Stock Exchange on Dec. 16. the product three-dimensionally,” said white-striped logo pattern is popular.” WWD MONDAY, DECEMBER 9, 2013 9 WWD.COM Christian Louboutin Gets Tokyo Home his knowledge into the design of Japanese culture. And after By AMANDA KAISER of the store but in a subtle way. reading that book, a lot of things The store, which he designed got explained to me.” TOKYO — Christian Louboutin with New York-based 212box, The store’s interiors also in- was strolling the streets of this features textured stonework corporate a patchwork of col- city in a pair of his own black, simulating the look of origami orful tiles sourced from New white and purple brogues with folds. A semitransparent black England, as well as stainless calf hair accents, when a cou- glass mural serves as a nod to steel shelving units and coun- ple of guys stopped to ask him Japanese lacquer. ters of fossilized stone. something. They did not speak The designer, clad in a rust- English so the designer strug- hued suit and gold-toed wing gled for a moment with the lan- Christian tips, said he identifies with guage barrier but soon figured Louboutin Japanese people’s appreciation out what they were asking. for fine details and their con- “I could see it was about the templative approach to life. A look at the space. address of the shoe,” he said of “I mean if you see…Japanese his encounter. The designer now gardens, it’s very contemplative. has a new address in which to People look at the garden, con- sumer is so savvy about details Mourot said the brand plans to direct interested parties: his lat- template the garden almost more and hand-crafting,” he said. add a location in Yokohama’s est Tokyo flagship, which gives then they actually go inside some Mourot declined to release Sogo department store next him a presence in the trendy gardens,” he said, adding that sales figures for the privately- year. The second level of the Aoyama neighborhood as well some Japanese people apply the held company but said Japan Aoyama store will serve as the as a new home base for his fast- same mind-set to shopping. “A represents 10 percent of the brand’s headquarters and show- growing Japanese business. lot of people are buying the thing business. The U.S. and Europe room in Japan. Louboutin hosted a party last and they may not even wear it account for 42 percent and 35 Mourot said the brand’s men’s week to fete the store, which but they look at it. So it’s not to percent respectively. Asia, ex- business is growing considerably, opens to the public Wednesday. consume it or to have it as an cluding Japan, makes up 10 per- albeit on a smaller comparative The 2,411-square-foot boutique “A take on Japanese culture item that one has to have but it’s cent of sales and other countries base than women’s. To reflect occupies a space formerly in- but definitely…through the filter really to contemplate it.” account for the remaining 3 that trend, the Aoyama store habited by Neil Barrett’s Zaha of my brain,” he said, explain- Alexis Mourot, Christian percent. The executive said the dedicates a bigger space to men’s Hadid-designed flagship. ing that famed Japanese author Louboutin’s group operating of- company is seeing growth across footwear and accessories than Louboutin, who travels to Junichiro Tanizaki’s seminal ficer and general manager, said the board in all markets. other Christian Louboutin bou- Japan about once a year, has text on Japanese aesthetics “In the brand has posted “strong Over the past three years, tiques. Louboutin said he hopes cultivated an appreciation for Praise of Shadows” influenced double-digit” growth in Japan the company’s directly-oper- to replicate that men’s and wom- the country’s culture and its him significantly. “It’s a very over the past few years, even in ated Japanese subsidiary has en’s balance in future stores. meticulous attention to detail. deep and funny book about the like-for-like terms. opened seven stores, including “The men’s line is getting He made a point to incorporate fundamental different ideas “I think the Japanese con- the Aoyama and Ginza flagships. very important,” Louboutin said. Global Trade Deal Reached at WTO Summit Employers Join Workers tablishment of a single window enabling traders to By JOHN ZAROCOSTAS submit documentation and/or data requirements for importation, exportation or transit of goods In Bangladesh Protests MINISTERS FROM 159 countries agreed Saturday through a single entry point of the participating au- — after marathon talks at the World Trade thorities or agencies, post-clearance, and for WTO Organization summit in Bali — on a package deal members to apply common customs procedures and By MAYU SAINI of market-opening measures worth an estimated $1 uniform documentation requirements for release trillion to the global economy. and clearance of goods throughout its territory. EMPLOYERS ARE UNITING with workers in a turn of “For the first time in our history, the WTO has The Bali package also includes accords aimed to events in Dhaka. truly delivered,” WTO chief Roberto Azevedo assist the world’s least-developed countries (LDCs), Faced with continuous blockades and a situation that told delegates. which includes apparel exporters such as Lesotho, employers say is “far more serious and dangerous” than the U.S. Trade Representative Michael Froman Bangladesh and Cambodia. frequent hartals or shutdowns that have been part of life in said, “The WTO has entered a new era. For the first This includes an accord to provide simpler and Dhaka, employers and executives, including many of the time in its almost 20-year history, the WTO reached more transparent rules-of-origin to imports from leaders of the garment employers organizations, came to- a fully multilateral agreement.” LDCs including for textiles and apparel. gether Saturday to give political parties an ultimatum. Gita Wirjawan, Indonesia’s trade minister, and The accord is a best endeavours effort, and al- In a protest, the businessmen held hands to make a chairman of the conference, hailed Azevedo as the lows WTO members to ensure that only preference human chain outside the offices of the Bangladesh Garment architect of the deal. “Your vision and leadership receiving LDCs and not others, benefit from the Manufacturer and Exporters Association. In addition to the have made the Bali package possible,” he said. market access opportunities. BGMEA, the protest included representatives of the Bangladesh The Bali deal is also seen as injecting political Senior trade diplomats said this would allow Knitwear Manufacturers and Exporters Association, as well as momentum toward reviving next year the broader, countries to provide preferential rules that apply, workers who fear that their jobs are in danger. but stalled, segment of the 12-year Doha round talks for example, only to poor sub-Saharan apparel pro- BGMEA president Atiqul Islam said that the losses in terms that aim to slash duties, and other impediments, to ducers and are not automatically extended also to of shipments alone were about $515 million in the first nine trade, including in farm and industrial goods — val- more competitive Asian LDCs like Bangladesh. months of the year, with companies being unable to get their ued annually at more than $18 trillion. Moreover, there’s an accord that calls for rich shipments to the port city of Chittagong and turning to air ship- The WTO-sponsored talks had been in limbo nations to provide duty-free and quota-free access ments to meet their deadlines. In the past three weeks, the sit- since they dramatically collapsed in 2008 because “for at least 97 percent of products originating in uation has grown far more serious as the 18 party opposition, of differences between rich nations such as the LDCs” and also for developing-country members in led by the Bangladesh Nationalist Party, gave an ultimatum to U.S. and the European Union, and emerging trad- a position to do so to also seek to provide duty-free the ruling Awami League that they would not accept or partici- ing powers such as China and India. access for LDC products. pate in the general election set for Jan. 5. The gridlock in Geneva had led the U.S., the EU In addition, the Bali deal calls for dedicated talks Police officials estimated that there have been more than and other trading powers in recent years to focus in the WTO on all forms of subsidies and tariff and 50 deaths in violence related to the elections and the recur- their priorities on pursuing bilateral and regional nontariff measures applied to cotton in markets of ring blockades in the last six weeks. free-trade initiatives such as the 12-nation Trans- interest to them. But it admits the WTO has yet to Garment leaders told WWD that they had been repeatedly Pacific Partnership talks, and the U.S.-EU talks on deliver on the trade-related components on cotton counseling both parties to come to an agreement before the Transatlantic Trade and Investment Partnership. made during the 2005 Hong Kong WTO trade summit. economy of the country was ruined. Bangladesh is the second Froman noted the trade facilitation accord is “a The breakthrough at the Bali talks came on biggest exporter of garments in the world, after China, and ‘win-win’ agreement. It is good for both developed Friday, the fourth and final day of the summit, after the $22 billion industry is key to the economy. and developing members alike. Azevedo brokered a compromise that removed the “We are being faced with a cancellation of orders,” said “The potential cost reduction…measures in this threat of the talks collapsing over agricultural dif- Islam, “and if we cannot meet our shipments we will not be agreement are estimated to be 10 percent for devel- ferences largely between India and the U.S. and able to pay worker salaries. Who is going to take responsibil- oped countries and around 15 percent for develop- EU. The terms agreed allow India and other de- ity for all of this?” ing countries,” he said. “Studies indicate that for veloping nations an interim four-year period to The high-level protestors have given the government five every one percent in cost reduction, worldwide in- provide more subsidies than allowed under global days to come to a consensus. Otherwise they will join hands come increases by more than $40 billion.” WTO norms and to stockpile staple food crops to with workers and members of the supply chain to protest fur- Similarly, Harold “Terry” McGraw, chairman of help feed millions of poor people, without threat ther if the country was not “saved from dirty politics,” they said. the International Chamber of Commerce, said last of a legal challenge if the schemes do not distort Garment workers told WWD on Sunday that they feared week that a recent study commissioned by ICC esti- global food trade. going to work as protestors resorted to increasing violence mated a WTO trade facilitation agreement “could However, objections by Cuba backed by Bolivia, and deaths were occurring throughout the city. The block- boost global gross domestic product by $960 billion an- Nicaragua and Venezuela over the removal of a ades across Dhaka have been called for 72 hours at a time nually and increase exports of developing countries clause in the draft trade facilitation accord concern- and left only Friday in the last week as a day when move- by $570 billion and of developed countries by $475 bil- ing the U.S. economic embargo triggered a new cri- ment was allowed. lion. It would also create 18 million jobs in developing sis when the island state threatened to veto the Bali This was especially to accommodate Oscar Fernandez- countries and three million in developed countries.” package and forced the talks to go into Saturday. Taranco, assistant secretary general of the United Nations, The facilitation pact allows for, among other Cuba withdrew its objections after compromise whose visit to Bangladesh was being watched carefully in the things, the expedited release of goods, for the es- language was inserted. hope it would help bring the political impasse to an end. 10 WWD MONDAY, DECEMBER 9, 2013

more interesting from the perspective of Zoë the galleries that come here.” Kravitz, Gagosian, who as even The New Lenny Yorker acknowledged in a profile of Kravitz, another dealer, David Zwirner, “occupies DJ Ruckus an ecosystem of his own,” was echoing and Steven a common complaint among Basel- Tyler. goers, that in its 12 years in Miami it has morphed from a trade show with a handful of social parties into an enormous commotion, the art relegated to mere subtext. “I nearly skipped it,” said China Chow. “I’ve been coming year after year and to tell you the truth — I don’t know if I should say this — I got e-mailed a lot of bad invitations, like, they’re getting bad. There’s still some good ones, but the bad ones are increasing, they have nothing to do with art. I think it’s because this has been going on for a while now. The same thing happened at Sundance.” “I think most artists don’t want to come here,” said The Black Keys drummer Patrick Carney, who was DJing Karolina Kurkova at The Wall. He was a first-timer to Art Frazzle Basel week but limited himself to the satellite fairs that pop up around it, like MIAMI — By 1 a.m. Friday, Aby Rosen’s see as many collectors from Seattle, San Nada. “My idea of fun isn’t going to a Larry Gagosian annual Art Basel dinner party at his Francisco or Europe. big sponsored party. I’d rather be at a W South Beach had spilled over into “It could be the social scene swallows Renaissance fair to be honest.” The Wall, the hotel’s club, the site of the art scene,” he said. “It could erode Of course, Rosen’s dinner and after the after party as well as a promotional the core of what made this and I’m a party is an exception. The crowd here is event for a Champagne bottle, a limited- little concerned that serious collectors, strictly A-list: Eric Schmidt, Lenny Kravitz, edition design by Jeff Koons for Dom people who I do business with, and a lot Damien Hirst, Tommy Hilfiger, Karolina Pérignon, the event’s sponsor. of my colleagues might say, ‘Well, this is Kurkova, Stavros Niarchos Jr. and Jessica Hart, It was the second night of Art Basel just some social rat f--k,’ and I’ve already Jean Pigozzi, Adam Lindemann, Richard and Miami Beach. The star wattage at the started to sense a little bit of that.” Lisa Perry, Steve Tisch, as well as a pack fair until then had been low — no Gagosian had more on his mind. of Schnabels (Vito and Lola) and Hiltons Beyoncé and Jay Z sightings this year, Kanye “It becomes a place to attach a (Paris, Nicky and Barron). The riffraff is West came and vanished on Wednesday product launch and I understand that. kept at bay at the door, their presence — but Rosen, who straddles the worlds Those are legitimate businesses, too. I’m required only to create the impression of art and real estate, carries a dog not a snob,” he said. “All I’m saying is of exclusivity. A-Rod, who came with his whistle heard only by the 1 percent, and that for my industry, the tail might wag art adviser Jeanne Greenberg Rohatyn, was they turned out for him. the dog and that could be a problem. more aloof than Gagosian. “I’m not doing Here were megastars — Steven Tyler, Two years ago, the audience was a little any media tonight,” he said contritely. Alex Rodriguez — and major collectors: Eli and Edythe Broad, Peter Brant. There were Eddie Borgo three official days of Basel left, but they Kristen were unlikely to match the frenzy here. McMenamy The scene at the club’s entrance was a bottleneck, a crush of clipboard girls, eye photographers and people hoping to be waved in or just to catch a glimpse of the first genuine star quality of the week. Inside the crammed club, the younger set, bathed in Day-Glo hot pink lights, was restricted to the dance floor while the heavy-hitters, an older crowd, stood comfortably at a remove in the bleachers, floating above the fray. In one spot, Larry Gagosian danced, hands in the air and everything, to TLC’s “No Scrubs” and “Big Poppa” by The Notorious B.I.G. “I think there’s too many parties here,” Gagosian said earlier at the dinner at the Dutch. Gagosian hardly ever speaks to the press and he seemed disinclined to answer questions — initially, he misheard Women’s Wear Daily as the Venezuela Daily News — but the explosion of events around the fair has raised enough red flags for him that he wanted to voice some Alex Rodriguez concerns. He noted this year he didn’t

Despite Gagosian’s concerns, Basel Amanda did well by him this year. Hearst “Good. Not spectacular but good,” he FOR MORE PHOTOS, SEE said. There are a few reasons for that. “One reason is that even when there’s WWD.com/eye. a very strong market, you might bring maybe not quite the right mix or maybe bring things that are too expensive. We MORELAND did good business — we’ve done better

in previous art fairs — but I’m not LEXIE disappointed.” BY At the after party, the art world’s

chairman of the board held court near OTHERS

the front and everyone who passed by — ALL Chow, Ethan Suplee, the actor and Leonardo DiCaprio buddy — made sure to stop by and kiss the brass ring. Next to Gagosian was the collector Alberto Mugrabi and laid out before them was a spread of Dom

and Belvedere Vodka. PRUTTING/BFANYC.COM; At one point, Gagosian got carried X away with a particular song, more DAVID

appropriate to him, say, than TLC, and BY danced enthusiastically, sticking his

China Chow in index finger in the air like a number-one PHOTO Stephen Dorff Viktor & Rolf. foam finger. The song: Sinatra’s “New

York, New York.” — ERIK MAZA KRAVITZ WWD MONDAY, DECEMBER 9, 2013 11 WWD.COM Oscar and The Outnet: Take Two neck dress. The core of the collection OscarPRGirl, senior vice president of By RACHEL STRUGATZ is a series of dresses priced from $895 global communications Erika Bearman, to $995 — including one with a jewel will host a lunch to fete the collection. OSCAR DE LA RENTA is gearing up neck and silk jacquard skirt, a sleeve- Duma, who Suveyke calls an “en- for a second act with The Outnet. less, floral, full-skirted silhouette and trepreneur in the digital space,” The luxury brand’s first 24-piece a long-sleeve navy A-line dress with vi- was integral to the range’s creative offering, designed specifically for and brant red flowers. campaign, illustrating product that’s in partnership with The Outnet — one “There is a thread from the first col- clearly from the designer “but speak- of three sites under the Compagnie lection,” said Shira Suveyke, vice pres- ing to The Outnet woman.” Duma also Financière Richemont SA-owned Net- ident of global buying at The Outnet, has a significant social media pres- a-porter group — sold out of half of noting the upcoming line uses new ence, boasting over 500,000 followers the collection the day it launched on fabrics to replicate the two best-selling on Instagram. Feb. 26. The second, 19-piece collec- styles from the first range — a long- Bolen said Duma gives the collec- tion will go on sale at theoutnet.com sleeve navy dress with a multicolored tion an international flavor. on Dec. 17 with Miroslava Duma ap- floral print and a tweed boucle dress. “Point number two on our to-do list pearing as online ambassador of the “Of course we wanted to make sure for digital next year is to get our site line. Duma, a global fashion fixture, is that we moved [the collection] forward, translated into Arabic. [The first is im- proving the mobile experience],” Bolen said. “It seems very specific, but when FOR MORE IMAGES, SEE we look at traffic coming internation- ally, we have to be able to talk to those WWD.com/ customers in their native language.” retail-news. He added that a quick sell-through rate and reaching a new audience were the obvious goals for the collabo- ration — but his most interesting take- away from the initial collaboration was unexpected: The Outnet customer is also an Oscar de la Renta customer. Part of the preliminary arrange- ment between the two parties earlier this year was that The Outnet would share the names and e-mail addresses of the customers who clicked on or shopped the collection with Oscar de la Renta so the brand could market to this group directly. Bolen maintained that once directly marketed to, this list of 20,000 people had twice the average e-mail open rate and twice the click through rate on os- cardelarenta.com versus existing cus- tomers. He revealed that although this group has only spent about $60,000 on the brand so far, they are “great pros- founder of Russian fashion news Web but we took our customer feedback pects for us to continue to talk to on a site Buro247 and digital media direc- into consideration.” regular basis.” tor at Russian department store Tsum. The designer’s offerings on The Bolen values quality over quantity, “A lot of people try to reach custom- Outnet are made in the same factory and instead of just acquiring new fans ers that they don’t typically reach,” as de la Renta’s main collection, but via the social mediums, he wants to seek said Alex Bolen, chief executive offi- are less expensive because they make out potential customers the brand can cer of Oscar de la Renta, in an inter- use of fabrics that are on hand and pat- engage with on a more regular basis. view Friday. “People collaborate with terns that already exist. “I don’t need to talk to 10 million H&M — [and] we have tried to find a The collection will be promoted people,” Bolen said. “I need to talk to new way to do that. That was what the with a behind-the-scenes video, a video 10,000 people who are really fashion initial experiment was about. It was a campaign, a takeover of The Outnet obsessed — and I need to talk to them success from many perspectives.” homepage, e-mail promotions, affili- about why they should be thinking Miroslava Duma in Prices in the upcoming offering ate banner support and social media about Oscar de la Renta. The Outnet Oscar de la Renta range from $325 for a sleeveless lace outreach. On Dec. 13, Duma and Oscar customer is very much that fashion- for the Outnet. tank to $1,095 for a floor-length, scoop- de la Renta’s social media personality obsessed customer.” Kors Star-Crossed in Italy VOGUE ITALIA editor in chief Franca Sozzani on Wednesday hosted a dinner to honor Michael For more career opportunities log on to WWDCareers.com. Kors and celebrate the opening of his boutique in Milan’s central shopping strip Corso Vittorio Emanuele this fall. “In the Eighties, my astrologer Spaces told me I would be traveling to Italy and returning to the country several Franca Sozzani times a year for years,” said Kors. The and Michael Kors accuracy of this prediction, which at Seeking Sales Reps for iconic recognizable characters on ees..must first baffled the designer, cemented have following with Mass merchants the relationship between the two, boutiques and dept stores high commission Please call 917-902-0135 anchoring many more years of fortune telling, recounted Kors, whose Share office/ one desk LUXURY SWIMWEAR & LUXURY $500 Mth. With 2 nice people apparel is produced by Gibò SpA. LINGERIE SPECIALIST Microwave/fridge/no smoking The Italian manufacturer’s Full Sample Development References needed call (212)719-5464 & Small Run Production 7th Ave & 36th St. location chief executive officer Franco LOS ANGELES Based 213-233-0258 Pené was among the guests at the event, held at the gentlemen’s For information on subscribing to WWD club Circolo del Giardino, as were Jonathan Newhouse, models Bar Refaeli call our toll-free number and Carmen Kass, Roberto Cavalli group ceo Gianluca Brozzetti, Pitti 1-800-289-0273 Immagine ceo Raffaello Napoleone, Italy’s stock exchange ceo Raffaele Jerusalmi, Osanna Visconti di Modrone, and Havas Media Group ceo in Karmen Pedaru (800) 423-3314, or email [email protected] Italy, Isabelle Harvie-Watt Clavarino. and Carmen Kass — LUISA ZARGANI 12 WWD MONDAY, DECEMBER 9, 2013 WWD.COM Holiday Spending Uptick Expected in Europe

{Continued from page one} two-year-old firm to double. “Lots of off- Sales appear to be robust in the lux- and $613, it found. said there were reasons to be optimistic. and online retailers have big inventories ury arena, too. Ulrik Garde Due, ceo of Pierre Pelarrey, managing director of “The fundamentals of the euro area to get rid of, but as a network, we have no Temperley London, which has a flagship the flagship Printemps department store are strong in a sense because the major inventories and are more flexible. The on Bruton Street in Mayfair, said pre- in Paris, said consumers appear to be de- policy mistakes of the previous years are long winter and bad spring didn’t affect Christmas trading has been strong so far, ferring their Christmas purchases. on the way to being corrected. The euro us,” von Bredow said. with foreigners flying to London to do “There is a stronger rise in foot traf- area can afford to make the structural re- their Christmas shopping, and domestic fic than there is in sales, which means ei- forms it needs,” Draghi said after the cen- GREAT BRITAIN customers following suit. ther that we are seeing the impact of the tral bank revealed it was leaving interest With consumer confidence up, and unem- “Gifting kicked in mid-November, and economic crisis, which is probably the rates unchanged at its meeting on Dec. 5. ployment falling, Christmas looks to be a there is very strong trading now that the case, or that people are deferring their The following is a snapshot of the hol- merry one for retailers — yet still in the weather has gone colder,” he said, adding purchases and coming to compare pric- iday retail outlook in leading European context of austerity Britain. that scarves and knitwear are among the es. We are definitely seeing more of that economies: According to market research firm biggest pre-Christmas sellers. than last year,” he said. Mintel, retail sales are expected to grow However, George Wallace, ceo of con- Top sellers include fashionable GERMANY by 4 percent in December to 40.6 billion sultancy MHE Retail, said Christmas warm-weather gear such as Ugg boots, Siegfried Jacobs, deputy director of the pounds, or $66.3 billion at current ex- won’t be stellar across Great Britain. Moncler and Canada Goose outerwear, German Apparel Retailers Association, change. Online sales are expected to rise “Christmas is going to follow the pat- gloves and cashmere items in every said it had been a disappointing year so 16 percent year-over-year to account for tern of the past few seasons: It’s going to color, Pelarrey noted. far, with year-to-date sales failing to reach 12 percent of all retail sales in December, happen late, and shoppers will be online The store’s La Boutique Noire sea- 2012 levels. A soft first half, an unsea- with 34 percent of shoppers polled by and looking for deals. Don’t forget that sonal gift shop is doing brisk trade in light sonably warm fall and continued warm Mintel saying they would be buying most people are not being paid much more fixtures, wooden objects and headphones, weather in many parts of the country have of their presents online. money, while energy and transport costs and there is strong demand across the left retailers with high inventories. board for high-end items such as niche “No one planned markdowns. But the perfumes and python handbags, he added. fashion is on target, and we’re hoping for Pelarrey expects total sales for the colder weather. With a little luck, we’ll be year-end period to be up from 2012, on par with last year,” Jacobs said. though probably in the single digits. The German Retailers Association, or “More people will be coming into the HDE, is taking a somewhat more optimis- store — it’s up to us to convert them into tic view, and forecast a nominal 1.2 per- customers,” he said. cent rise in the nation’s Christmas busi- Brick-and-mortar stores are being chal- ness. “Consumers are in a good mood,” lenged by e-tailers more than ever. Online it said, adding that a recent poll of pure revenues are expected to reach 10.3 bil- and multichannel players indicated that lion euros, or $14 billion, this Christmas, most expect a good Christmas. up 14 percent compared with last year, ac- This was backed up by GfK’s consum- cording to the Federation for E-commerce er climate monitor for November, accord- S and Mail Order Sales, or Fevad. AGE

ing to which willingness to buy reached IM “Internet users are allocating an in-

a seven-year high and the propensity to TTY creasingly large share of their gift budget E

save “a new historic low.” Moreover, GfK /G to online purchases. Indeed, they plan to P is forecasting an even higher overall in- spend 60 percent of their budget online, UR/AF

dicator for December. O versus 58 percent last year,” said Bertrand “The appeal of saving, the alternative Krug, head of the department of online DUF to spending, is falling further and further efficiency measurements at Médiamétrie, for consumers. Consequently, they are Shoppers in central FRED which conducted the survey for Fevad. more likely to focus their financial means Paris last week. BY on consumption. This is certainly good ITALY PHOTO news for the imminent Christmas busi- According to Italian retailers’ associa- ness,” the GfK report stated. Takings from online retailers are ex- will be going up,” he said. tion Confimprese, consumers in Italy A report by Ernst & Young released in pected to exceed the 10 billion pound, or “It’s a slightly dreary picture, al- have been slower to regain confidence November said German consumers’ gift- $16.3 billion, mark for the first time. Click- though we’re not facing Armageddon. in the market than their counterparts in giving budgets have risen 19 percent to and-collect services will prove to be popu- And it’s in line with the two-speed econ- Germany and the U.K., among others. a median of 273 euros, or $372, per per- lar too, with 17 percent of shoppers expect- omy we are seeing in Britain now, with The association reported that 86 per- son. Apparel was the third most popular ed to use this method for their shopping. London doing well and the rest of the cent of Italian consumers do not consider gift-giving category, and the audit and “Everything seems to be coming to- U.K. lagging. The tills may be ringing this a good time to shop, and four out of consulting firm’s report said department gether at the right time for retailers here, but I don’t think they’re ringing in five say they have changed their shop- stores and shopping centers “will book this year and we expect to see a strong Bradford or Leeds,” Wallace said. ping habits compared with last year. clear gains in (their) Christmas business. Christmas,” said Mintel’s director of re- La Rinascente ceo Alberto Baldan said Instead of 46 euros last year, consum- tail Richard Perks. FRANCE overall sales for 2013 were up over the pre- ers now want to spend an average of 79 According to its latest Christmas pre- In France, the catchphrase of the season vious year, and he expected the momentum euros” in these channels. trading figures, British retailer John is “fiscal shock.” With more than half of to remain strong throughout the holidays. E-commerce, which according to the Lewis is riding a wave of spending, fu- French taxpayers seeing a rise in their Top categories this season included HDE generates 7.5 percent of German re- eled in part by Black Friday promotions. annual income tax bill, which tradition- men’s and women’s shoes, and cosmet- tail sales, is projected to grow 12 percent The department store said its 40 shops ally comes due in fall, shoppers again ics sales were strong. The Italian depart- in 2013 to around 33 billion euros, or $45 and its Web site recorded sales of 147 million plan to spend carefully and compare ment store, which counts a large number billion at current exchange, with online pounds, or $241 million, in the week ended prices, seek out discounts and map out of tourists from China and Russia among Christmas sales set to total 8.5 billion Dec. 1, up 18.4 percent on the same period a their purchases in advance. its clients, has also seen positive results euros, or $11.6 billion. year earlier and up 31.4 percent versus the The French intend to spend on av- with accessories and various design ob- Mathias von Bredow, founder and chief previous week. Online trade at johnlewis. erage 326 euros, or $444, on gifts this jects that are perceived as good gifts. executive officer of Luxodo, a Hamburg- com was up 35.7 percent year-over-year. Christmas, down 5.8 percent versus 2012, — WITH CONTRIBUTIONS FROM based platform of 65 European high- Among the top sellers were iPads, according to a survey by French research JOELLE DIDERICH, PARIS; SAMANTHA fashion and design stores, said “generally televisions and Sony’s PlayStation4. institute CSA for BFMTV channel. Of CONTI AND JULIA NEEL, LONDON; speaking, the climate is still very positive.” Fashion sales rose 16.6 percent during these, 45 percent plan to spend between CYNTHIA MARTENS, MILAN, AND He expects full-year revenues at the the week, the store said. 150 euros and 450 euros, or between $204 MELISSA DRIER, BERLIN

two worked together at Louis Vuitton, living in Paris. I don’t know what the said Marino. “Brands like Chanel redo 12 and Jacobs noted that they shared the future will be, and I’m just sort of like or 16 of their stores per year. That’s more MEMO PAD same therapist, which elicited laughs ‘Let’s see, let’s see how it goes.’ I’ve than one per month. But then I think Mr. from the audience. always admired Nicolas. You know, I’m [Karl] Lagerfeld has 12 collections a year to MARC TALKS: “I don’t ever think of Jacobs spoke about his departure curious to see what he’ll do. I mean, we do, I only have 16 boutiques. There’s a lot fashion as art,” said Marc Jacobs during a from Louis Vuitton, and about his have such different aesthetics. I guess of work to be done.” talk this week at London’s Tate Modern successor, Nicolas Ghesquière. I’ve gone through kind of ups and downs Jacobs also talked about his own with Peter Marino. “We don’t need fashion. “Actually, I’m a little scared. I mean, about it, but the thing is, before me there label and its future. We don’t need beautiful buildings. We it wouldn’t be me if I sat here and was no ready-to-wear. There were no “I’d really love to control the need clothes for the body. We need food pretended to be superconfident about shoes; there [was] no jewelry and no shopping bags. I’d love to control the and water to eat. We need a place to live. everything,” he said. “There’s a kind men’s wear — there was nothing. So, I had stores,” he said. “I’d really love to But we want so much more — and we of healthy fear that I have — it’s how an opportunity that was so wonderful… control everything, but the reality of have so much more. We have beautiful I operate. On a good day, I believe it’s .I’m just really glad that somebody who I being able to do that isn’t real. So you art, beautiful buildings, clothes, fashion, going to be amazing, and on a bad day really respect and admire and I think is surround yourself with people who fragrance, cosmetics, music, writing — I think I need that other place to hide. a great talent is there. I’m just curious to reflect your sensibility, who you trust. it’s all of them that inspire me.” But anyway, today I’m in a good place. see what he does.” “I’d like to play a more active part, Jacobs and Marino, speaking as part I think it’s going to be great. I guess Marino and Jacobs both talked about maybe now that I’m no longer working of the museum’s John Edwards Lecture there’s a plus and minus to doing the the frenetic pace of the business. for Vuitton. Working on my own brand, Series on Thursday, discussed their love Marc Jacobs Louis Vuitton thing. “It’s a very hectic schedule when maybe I’ll have a little more time to focus of fashion, architecture and the arts. The “I loved it and I’ve learned a lot from you’re working with fashion boutiques,” and participate more.” — LORELEI MARFIL

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