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Black Magic NEW YORK — Carolina Herrera Is out to Prove That Men Can Be Every Bit As Stylish As Women with Chic for Men, Her Third Men’S Scent

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Black Magic NEW YORK — Carolina Herrera Is out to Prove That Men Can Be Every Bit As Stylish As Women with Chic for Men, Her Third Men’S Scent PRADA’S DEBT PLAN/2 GAP CEDES GERMANY TO H&M/2 WWWDomen’s Wear Daily • The Retailers’FRIDAY Daily Newspaper • February 6, 2004 • $2.00 Beauty Black Magic NEW YORK — Carolina Herrera is out to prove that men can be every bit as stylish as women with Chic for Men, her third men’s scent. The fragrance, which also borrowed inspiration from the simplicity of classic black-and-white photography, will roll out in Saks Fifth Avenue doors at the end of this month, and enter the rest of its 200-door distribution in September. It could do $3.5 million at retail in its first year. For more, see page 13. Luxury on a Roll: Double-Digit Gains for Third Straight Month By Jennifer Weitzman arrival of new spring lines. Chilly Comparable-Store Sales Index and Ross Tucker weather and gift-card redemptions came in with a 5.9 percent increase BY BRYN KENNY NEW YORK — Luxury’s momentum also drove traffic. for the month, its highest gain since continued in January while In turn, retailers reported strong September 2003 when it also consumers were also lured into comparable-store gains. The showed a 5.9 percent increase. stores by clearance sales and the Goldman Sachs Retail Composite See Strong, Page 20 PHOTO BY GEORGE CHINSEE; STYLED 2 WWD, FRIDAY, FEBRUARY 6, 2004 WWDFRIDAY Prada Plans to Halve Debt Beauty By Courtney Colavita Patrizio lion euro, or $82 million, tax re- Patrizio bate from the Italian government BEAUTY Bertelli MILAN — This may or may not Bertelli would enable Prada to cut its Coty Beauty is hoping for back-to-back hits with the launch of a second be the year of Prada’s long- debt to 290 million euros, or 12 Celine Dion fragrance this spring called Celine Dion Parfum Notes. mooted initial public offering, $365.9 million, by yearend. There’s a new man joining the Carolina Herrera fragrance franchise this but Prada chief Patrizio Bertelli Meanwhile, there’s the contin- 13 spring — Chic for Men, the designer’s third men’s scent. is nonetheless forecasting a uing question mark around major decline in his group’s net Prada’s expected public offering. New Jersey residents got a taste of new decor and merchandising debt. And he doesn’t plan to sell After postponing an IPO three 15 strategies at Wal-Mart with the opening of three stores there last week. all of his brands to do it. times, Bertelli recently hinted at After chipping away at its the Jil Sander men’s fall-winter debt over the past two years, the 2004 show here that this year may GENERAL company said it expects to halve still prove difficult for a listing. A perfect storm of clearance sales, chilly weather and gift cards drove it to 290 million euros, or $365.9 “Parmalat certainly hasn’t 1 January shopping, leading to same-store sales that beat expectations. million at current exchange, by helped the situation,” Bertelli The Gap is saying auf Wiedersehen to the German market, selling its 10 yearend. Prada, which also owns said, referring to the huge corpo- 2 unprofitable stores to fast-fashion behemoth Hennes & Mauritz. such companies as Jil Sander rate accounting scandal at the and Helmut Lang, has been dili- Italian dairy giant. He declined Continuing to prepare for its acquisition of DuPont’s Invista business, Koch gent in cutting its debt, which to give further details on the 17 Industries tapped three executives for the post-deal management team. stood at 950 million euros, or 90 million euros, or $113.6 million, exact timing of the planned IPO, Diamond profits and prices are on the rise at De Beers, which saw net $1.19 billion, at the end of 2002, a more this year when it sells an 80 but a company spokesman said earnings rise 10.25 percent to $484 million in the fourth quarter. result of its acquisition spree in percent stake in its new Epi- the IPO is expected by the sec- 22 the late Nineties. center store in Tokyo’s Aoyama ond half of this year or in the be- Although its debt-reduction district, the company said. Prada ginning of 2005. SUZY strategy had originally focused will control the balance and begin As reported, Prada has 700 Playing Princess Margaret…Nancy Sinatra’s Boots…From Russia to on an IPO, Prada was forced to to pay rent on the unit. million euros, or $883.2 million, Seville. come up with other initiatives Opened last summer, Bertelli of convertible bonds that expire 4 after it repeatedly postponed a at the time touted the Herzog & in June 2005. They must be paid Classified Advertisements........................................................................23 stock market listing because of de Meuron designed Tokyo space back if the company hasn’t listed To e-mail reporters and editors at WWD, the address is poor market conditions. Last as the largest single investment on the stock exchange by then. [email protected], using the individual's name. year, it sold a 55 percent stake in by an Italian company in Japan Prada is expected to release WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 footwear company Church’s to since the end of World War II. its 2003 results next month. As re- FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Swiss Equinox Investment and While a Prada spokesman de- ported, the company said it ex- VOLUME 187, NO. 25. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional entered into a joint real estate clined to elaborate on other pects Prada Group’s revenues to issue in January, May, June and November; two additional issues in February, March, April, September, October and December; and three additional issues in August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 spin-off venture with Aedes SpA. planned real estate sales, he said be in line with the 2002 figure of West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Prada’s joint venture with that the 28,000-square-foot space 1.5 billion euros, or $1.89 billion. Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice- Aedes SpA, Real Estate Inter- is just “one of the upcoming real Net profits, which Bertelli origi- President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior Vice- national Srl, acquired a number estate spin-offs scheduled for nally said would rise 85 percent, President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice-President_General of Prada-owned real estate as- this year.” are now expected to increase 30 Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096- sets last year for 120 million In addition to the Epicenter’s percent to 35.1 million euros, or RM0001. Canada post return undeliverable Canadian addresses to: P.O. Box 1632, Station A, Windsor, ON N9A7C9. euros, or $151.4 million, as previ- sale, the company said an 85 mil- $44.2 million, from 27 million POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. ously noted. lion euro, or $107.2 million, in- euros, or $34.1 million, in 2002, FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR Prada is expected to net about ventory reduction and a 65 mil- according to a spokesman. DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive Peter Williams these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. Gap’s German Bow: WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART Exits Selfridges, WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Sells Stores to H&M ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. By Miles Socha would “reallocate our resources Kelly Appointed to optimize growth in our other PARIS — Gap Inc. is saying auf existing markets and longer-term By Samantha Conti wiedersehen to the German mar- opportunities in new markets.” In Brief ket, selling its 10 unprofitable Last November, Gap appoint- LONDON — Six months after pur- stores to fast-fashion behemoth ed Andrew Rolfe as the president chasing Selfridges & Co., Galen ● HOWARD EXITS LIZ: Todd Howard, group president at Liz Hennes & Mauritz, which has al- of its Gap International division Weston is making his mark.
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