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Oh, La La the Department Store Group, and Intensifi Ed Efforts to Newcomer Ji Oh Is Off to a Chic Start

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Oh, La La the Department Store Group, and Intensifi Ed Efforts to Newcomer Ji Oh Is Off to a Chic Start FALL INSPIRATIONS ART ORTENBERG DIES PART THREE OF WHAT SPARKED KEMPNER DESIGNERS’ CREATIVITY FOR THE COFOUNDER THEIR UPCOMING COLLECTIONS. OF FASHION PIONEER STYLE PAGES 4 AND 5 LIZ CLAIBORNE INC. NAN KEMPNER’S AND WILDLIFE GRANDCHILDREN MEGGIE AND CHRIS KEMPNER LAUNCH CONSERVATIONIST A SPORTSWEAR LABEL WAS 87. PAGE 8 INSPIRED BY HER. PAGE 6 BUILDING ONLINE, OUTLETS L&T, Hudson’s Bay Eye Aggressive Growth By DAVID MOIN CAN LORD & TAYLOR sell in Atlanta, Miami and Europe? The Northeast-concentrated department store and its sister Hudson’s Bay division spread through WEDNESDAY, FEBRUARY 5, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY Canada have new agendas stretching the boundaries WWD of where and what both retailers can sell. That’s the word from Liz Rodbell, the career L&T merchant who on Monday offi cially stepped up from executive vice president to president of the Hudson’s Bay Co. department store group. The business, esti- mated at about $4.2 billion in sales for 2013, includes the 49-unit L&T and the 90-unit Hudson’s Bay. For decades, both have lagged the competition in productivity, not to mention retail theater. Yet over the last several months, management has been stabilized with marketing, creative and administrative chiefs ap- pointed, as well as elevating Rodbell, while strategies for growth and reviving some pizzazz have been un- folding fast. The $7.5 billion parent Hudson’s Bay Co. remains in a transformational period due to its recent Saks Fifth Avenue acquisition, which is separate from Oh, La La the department store group, and intensifi ed efforts to Newcomer Ji Oh is off to a chic start. renovate, develop shop formats and brand partnerships The designer presented her fi rst inside Hudson’s Bay and L&T and advance the under- developed online businesses at those two divisions. collection on Monday, a lineup that “Digital represents our biggest growth engine,” she describes as “modern, clean and Rodbell told WWD in her fi rst interview as president, androgynous.” With a less-is-more spelling out the blueprint for the future. “The digital marketing spend is being boosted by 50 percent this approach, Oh focuses on high-quality year,” to represent 30 percent of the overall market- fabrics in minimalist cuts, ing budget. That should enable L&T and Hudson’s such as this lamb fur Bay to strengthen consumer loyalty in areas where and textured double- the retailers operate stores and where they don’t but FALL 2014 could sell via the Web. face wool jacket worn “L&T has moved to an international model,” Rodbell with a wool sweater NEW YORK said. “We can ship to 100 countries,” effective this and stretch wool SEE PAGE 9 COLLECTIONS gabardine pants. For more, see page 7. Topshop Signs Lease For Fifth Ave. Flagship By SAMANTHA CONTI LONDON — Topshop is ready to dress New York’s uptown customers, with plans for a 40,000-square-foot fl agship at the corner of Fifth Avenue and 49th Street. The new store, currently occupied by Lacoste and adjacent to Rockefeller Center, will be the second- largest Topshop unit after Oxford Circus in London, which measures 90,000 square feet. Housed in a list- ed, landmark space built by Henry Goelet in 1931, the new store will also carry the Topman brand. In addition to the uptown store, Topshop will open four new units across the U.S., in San Diego, Houston, Atlanta and Washington, over the next 12 months. All, with the ex- ception of D.C., will also have Topman spaces. Topshop owner Sir Philip Green will be investing $40 million to $50 million in building and fi tting out all the new stores. In an interview here, Green said the long-awaited up- town opening in Manhattan is part of a continued push into the U.S. market, where he aims to generate $1 billion dollars in revenue from the Topshop and Topman brands. “It’s taken a couple of years, we’ve negotiated a few times, gone right to the altar — and then been jilted,” said Green of his quest to fi nd the appropri- ate space uptown. The fi rst U.S. Topshop unit opened on Broadway near Broome Street in 2009, and there are stand-alone stores in cities including Chicago, Los Angeles and Las Vegas. Green also said he plans to refurbish Topshop on Broadway, and take back some space from the PHOTO BY GEORGE CHINSEE store’s atrium area. SEE PAGE 12 2 WWD WEDNESDAY, FEBRUARY 5, 2014 WWD.COM Kors Q3 Net Leaps 76.6% THE BRIEFING BOX “Michael’s fashion messaging with our custom- IN TODAY’S WWD By VICKI M. YOUNG ers [was] strong, and well-executed throughout the holidays. We communicated with our customer THE MARKET VALUE of Michael Kors Holdings through e-mail, catalogue, print, outdoor and social Ltd. just keeps climbing, hitting $18.25 billion on media, which expectedly conveyed the glamour and Tuesday and valuing designer Michael Kors’ 2 per- luxury of our holiday offering, capturing the cus- On the grounds of cent stake at $365 million. tomer’s attention and generating strong demand Barcelona’s 080 Fashion The company’s shares soared 17.3 percent globally,” Idol said. event. For more style Tuesday to close at $89.91 in trading on the New He also told analysts during the question-and-an- from the Spanish city, York Stock Exchange after Kors reported a 76.6 per- swer period, “And we think that continuing to build see WWD.com. cent leap in net income for the third quarter ended our platform socially is one of our priorities be- Dec. 28 on a 59 percent rise in revenues. Shares cause it gives us one of the greatest global reaches. rose as high as $93.18 in intraday trading, which So, I’d say that’s probably our number-one priority.” represented a new 52-week high. About 23 million Idol said the company has acquired more than shares changed hands, compared with an average 10 million Facebook fans, and is in the 1.5 million three-month trading volume of 4.5 million shares. range for Twitter and Instagram. The accessories and fashion firm reported net in- The company’s new North American Web site is come for the third quarter of $229.6 million, or $1.11 set to launch for fall. “We are seeing high-double- HILLIG a diluted share, up from $130 million, or 64 cents, a digit increases in our worldwide search volume year ago. Total revenues were $1.01 billion, compared and in visitors to our existing Web site. By bring- MATTI with $636.8 million, which included a 59 percent gain ing e-commerce in-house, we will be able to bet- BY in net sales to $964.8 million from $606.9 million. ter focus on communications, marketing and sales PHOTO North American comparable- strategies to capitalize on the store sales rose 24 percent, its online growth opportunity,” core market, while comps rose the ceo said. Liz Rodbell, the new president of Hudson Bay Co., discusses 73 percent for its European Idol noted that the third PAGE 1 stores. The balance of revenues quarter was the first time the the future of Lord & Taylor and Hudson’s Bay. was from licensing income. 17.3% company posted revenue in ex- Analysts were expecting on cess of $1 billion for any of its Topshop is ready to dress New York’s uptown customers, with average 86 cents in earnings RISE IN SHARES ON TUESDAY quarters. He also told analysts plans for a 40,000-square-foot flagship at the corner of Fifth per share for the quarter on OF MICHAEL KORS HOLDINGS LTD. that the company remains fo- Avenue and 49th Street. PAGE 1 a revenue estimate of $859.9 cused on executing on its six- million. pronged growth strategy that Two of Nan Kempner’s grandchildren, are launching a For the nine months, net income rose 68.8 per- includes more retail doors and continued conver- sportswear collection aptly called Kempner. PAGE 6 cent to $500.4 million, or $2.44 a diluted share, on sion of department store doors into shops-in-shop. a total revenue gain of 51 percent to $2.39 billion. Kors opened 20 stores in North America, 19 Anne Valérie Hash will sit out the fall fashion season and not Analysts were cautious about the results, though. across Europe, four in Japan and seven in the Far present any collection during Paris Fashion Week. PAGE 7 Paul Lejuez of Wells Fargo said that while Kors East through regional licenses during the quarter. showed strength in “every line item, every region For fiscal 2014, Idol said the company is on track to Arthur Ortenberg, a founder and vice chairman of Liz and every segment,” he also said “we believe im- open 57 North American retail stores and 36 stores Claiborne Inc., has died at the age of 87. PAGE 8 pressively high sales productivity levels create ex- in Europe. The company just opened a flagship in tremely difficult comparisons and will lead to slow- Shanghai, at Kerry Centre on Nanjing Road, and Target and Neiman Marcus executives appeared before the ing comps at some point.” has opened two stores in Brazil, in São Paulo and Senate Judiciary Committee on Tuesday at a hearing on their Randal J. Konik at Jefferies downgraded the Curitiba, in the quarter. There are seven stores in respective data breaches. PAGE 10 stock to “hold,” noting that the growth “has been Latin America, with an additional site in Brazil, too fast.” He noted that as Kors continues to take one in Venezuela and three in the Caribbean.
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