Fashion. Beauty. Business. DEVIL OR ANGEL MAR 2016 Has Edward S. No. 5 Lampert’s management been good for Sears? Features, p. 60

THE AGE OF KIEHL’S Marking 165 years of the neighborhood druggist-turned-global skin-care giant. Milestones, p. 39

TEXTILE TECH Fabric innovations spur new high- tech products. In Focus, p. 24

Keeping It Real Beauty has a new look on the runway and it’s all about individuality.

US $9.99 JAPAN ¥1500 CANADA $13 CHINA ¥80 UK £ 8 HONG KONG HK100 EUROPE € 11 INDIA 800 The Sears Tower in Chicago, under construction in 1973.

Edward Nardoza EDITOR IN CHIEF Pete Born EXECUTIVE EDITOR, BEAUTY Bridget Foley EXECUTIVE EDITOR James Fallon EDITOR Miles Socha EXECUTIVE EDITOR, EUROPE Robb Rice GROUP DESIGN DIRECTOR Nick Mrozowski CREATIVE DIRECTOR

John B. Fairchild 1927 — 2015

MANAGING EDITOR Peter Sadera MANAGING EDITOR, Dianne M. Pogoda FASHION/SPECIAL REPORTS MANAGING EDITOR, OPERATIONS Diana Benbasset DEPUTY MANAGING EDITOR Evan Clark NEWS DIRECTOR Lisa Lockwood DEPUTY EDITOR, DATA AND ANALYSIS Arthur Zaczkiewicz SITTINGS DIRECTOR Alex Badia SENIOR EDITOR, RETAIL David Moin SENIOR EDITOR, SPECIAL PROJECTS, Arthur Friedman TEXTILES & TRADE SENIOR EDITOR, FINANCIAL Vicki M. Young BUREAU CHIEF, LONDON Samantha Conti BUREAU CHIEF, MILAN Luisa Zargani BUREAU CHIEF, LOS ANGELES Marcy Medina ASIAN EDITOR Amanda Kaiser BUREAU CHIEF, WASHINGTON Kristi Ellis ASSOCIATE EDITOR Jenny B. Fine DEPUTY EDITOR, FASHION Troy Segal SENIOR EDITOR, SPECIALTY RETAIL Sharon Edelson SENIOR PRESTIGE MARKET Julie Naughton BEAUTY EDITOR SENIOR FASHION FEATURES EDITOR Jessica Iredale ACCESSORIES MARKET DIRECTOR Roxanne Robinson FASHION MARKET DIRECTOR Mayte Allende EYE EDITOR Taylor Harris MEN’S SENIOR EDITOR Jean E. Palmieri FASHION DIRECTOR Alex Badia MEN’S MARKET EDITOR Luis Campuzano MEN’S REPORTER Aria Hughes MEN’S FASHION ASSISTANT Kayana Cordwell MARKET EDITORS FINANCIAL NEWS AND ANALYSIS Debra Borchardt ACCESSORIES Misty White Sidell BEAUTY, FINANCE Allison Collins BEAUTY, MASS MARKET Ellen Thomas BEAUTY, WEST COAST Rachel Brown DIGITAL Rachel Strugatz READY-TO-WEAR & SPORTSWEAR NEWS Rosemary Feitelberg MEDIA Alexandra Steigrad READY-TO-WEAR AND Kristi Garced SPORTSWEAR FASHION EYE Leigh Nordstrom CORRESPONDENTS LONDON, GENERAL Lorelei Marfil ASSIGNMENT EDITOR ACCESSORIES AND GENERAL Natalie Theodosi ASSIGNMENT EDITOR LOS ANGELES Khanh T.L. Tran, Kari Hamanaka MILAN, FASHION AND NEWS Alessandra Turra NEW YORK, EDITORIAL ASSISTANTS William Cotto, Tara Bonet-Black, Kelsi Zimmerman NEW YORK, FASHION ASSISTANTS Andrew Shang, Kayana Cordwell PARIS, EUROPEAN BEAUTY EDITOR Jennifer Weil PARIS, SENIOR FASHION EDITOR Laurent Folcher PARIS, SENIOR BUSINESS NEWS EDITOR Joelle Diderich PARIS, GENERAL ASSIGNMENT Paulina Szmydke REPORTER, NEWS PARIS, EDITORIAL AND WEB COORDINATOR Anne-Aymone Gheerbrant GENERAL ASSIGNMENT EDITOR, EUROPE Laure Guilbault SAN FRANCISCO, TECHNOLOGY Maghan McDowell DESIGN DEPARTMENT ART DIRECTOR Mallory Roynon DESIGNER Jewelyn Butron PHOTOGRAPHY PHOTO DIRECTOR Ash Barhamand SENIOR PHOTO EDITOR Jenna Greene BOOKINGS AND PRODUCTION EDITOR Oona Wally PHOTO EDITOR Katrina Brown ASSISTANT PHOTO EDITOR Jillian Sollazzo PHOTO STUDIO Real Girls PHOTO STUDIO COORDINATOR Emily Taylor 52 Models once walked the runway in uniform PHOTOGRAPHERS Justice Apple, George Chinsee, Thomas Iannaccone beauty looks, but recent seasons have seen a trend COPYDESK COPY CHIEF Maureen Morrison-Shulas toward letting each individual stay true to her own COPY EDITORS Danielle Gilliard, David Podgurski, Maxine Wally features and style. PREPRESS PRODUCTION DIGITAL IMAGING Alex Sharfman PREPRESS ASSEMBLY David Lee Chin Saint or Sinner? WWD.COM DIGITAL DIRECTOR Danica Lo 60 Since taking over Sears and Kmart and ASSISTANT ONLINE EDITOR Kristen Tauer DIGITAL DAILY DESIGNER Ryan Richmond forming Sears Holdings Corp., chairman Edward S. WEB PRODUCER Robert Tutton SOCIAL MEDIA MANAGER Leah Kircher Lampert kept the ailing chains going with a stream INTERNATIONAL DIGITAL EDITOR Fabiana Repaci of funding maneuvers, spin-offs and real estate PUBLIC RELATIONS

P.R. COORDINATOR Christina Mastroianni The Features transactions. But has he been good for the brands?

Photograph by AP IMAGES WWD.COM MARCH 2016, No. 5 3 Contents

Paul Jowdy SENIOR VICE PRESIDENT, GROUP PUBLISHER Pamela Firestone ASSOCIATE PUBLISHER

ADVERTISING INTERNATIONAL FASHION DIRECTOR, Renee Moskowitz RMM MEDIA EXECUTIVE DIRECTOR, MEN’S Brett Mitchell BEAUTY DIRECTOR Carly Gresh AMERICAN FASHION & Jennifer Petersen LUXURY DIRECTOR ACCOUNT DIRECTOR Samantha Hartje ACCOUNT EXECUTIVES Amy Keiser Shannon Fitzgerald SENIOR CLIENT SERVICES MANAGER Trish Robbins CLIENT SERVICES MANAGERS Annie Belfield Rachael DeSantis Tina Schissel REGIONAL OFFICES/INTERNATIONAL OFFICES WEST COAST DIRECTOR Jill Biren +1-323-965-7283 EUROPEAN ACCOUNT DIRECTOR, ITALY Giulia Squeri +39-02-722-33602 ACCOUNT DIRECTOR, ITALY Olga Kouznetsova +39-02-722-33603 SENIOR SALES COORDINATOR, ITALY Emanuela Altimani EUROPEAN DIRECTOR, FRANCE Valérie Deschamps-Wright +33-1-44-51-07-611 Kiehl’s is the sixth-largest skin-care brand globally. EUROPEAN SALES REPRESENTATIVE Marjorie Thomas +33-240-31-6541 ADVERTISING ASSISTANT, FRANCE Pascale Rajac DIGITAL/MARKETING/CREATIVE SERVICES The Age of Kiehl’s: What started as a corner MARKETING DIRECTOR Shannon Nobles CREATIVE DIRECTOR, MARKETING Cass Spencer apothecary in Manhattan’s Greenwich Village has DIGITAL MEDIA STRATEGIST Cassie Leventhal DIGITAL SALES PLANNER Suzette Minetti grown into an international powerhouse. AUDIENCE MARKETING VICE PRESIDENT Ellen Fairbanks Dealy WWD Milestones: Kiehl’s at 165, page 39 CONSUMER MARKETING DIRECTOR Peggy Pyle SENIOR DIRECTOR, DIGITAL MARKETING Janet Menaker & STRATEGIC DEVELOPMENT SENIOR DIRECTOR FINANCE, PLANNING Sean McDermott AND OPERATIONS PLANNING & OPERATIONS DIRECTOR John Cross DEPARTMENTS SENIOR DIRECTOR, Randi Segal INSTITUTIONAL SALES SENIOR ONLINE MANAGER Suzanne Berardi 6 Social Studies SENIOR MARKETING MANAGER Tamra Febesh The best and worst in social ASSOCIATE MARKETING MANAGER Lauren Busch Agenda media, what’s trending, PRODUCTION whom to follow. PRODUCTION DIRECTOR Kevin Hurley PRODUCTION MANAGER Providence Rao SUMMITS & EVENTS 24 WWD In Focus VICE PRESIDENT, NEW VENTURES & GM Amber Mundinger The Battle Textile Tech From fabric EXECUTIVE EDITORIAL DIRECTOR Mary Ann Bacher developments in activewear DIRECTOR, ATTENDEE SALES Kim Mancuso Continues 8 SPONSORSHIP DIRECTOR Alexis Coyle to the growth of sustainability, After a tough and lingering slog, DIRECTOR OF Amelia Ewert innovation is bringing fresh EXPERIENTIAL MARKETING watchmakers, who gathered in products to the consumer. FAIRCHILD PUBLISHING LLC Basel this month, hope they’ve EDITORIAL DIRECTOR OF Michael Atmore turned the corner and are FOOTWEAR NEWS & DIRECTOR holding their breaths about 34 Eye OF BRAND DEVELOPMENT the year ahead. • Arts & Culture Actress DIRECTOR OF EUROPEAN OPERATIONS Ron Wilson and sometimes Miu Miu front-rower Emma CONGRATULATIONS Greenwell makes it big in Hulu’s “The Path.” WWD AND FAIRCHILD MEDIA So Bad, It’s Good 12 ARE OWNED AND PUBLISHED BY PENSKE MEDIA CORPORATION • Report Card Jaime Even though the consumer Jay Penske isn’t shopping, fashion stocks King looks her best; CHAIRMAN & CEO ON YOUR are rebounding as investors Retirement doesn’t VICE CHAIRMAN Gerry Byrne KIEHL’S try to get in early. agree, fashionwise, EXECUTIVE VICE PRESIDENT, George Grobar with David Letterman. STRATEGY AND OPERATIONS SENIOR VICE PRESIDENT, Craig Perreault BUSINESS DEVELOPMENT 165TH ANNIVERSARY 66 Think Tank GENERAL COUNSEL & Todd Greene SVP HUMAN RESOURCES Bill Zielke, chief marketing VICE PRESIDENT, CREATIVE Nelson Anderson The Men’s Side 14 officer of fraud prevention VICE PRESIDENT, FINANCE Ken Delacazar firm Forter, tells retailers VICE PRESIDENT, HUMAN RESOURCES Tarik West The men’s wear segment is VICE PRESIDENT, ENGINEERING Gabriel Koen Kiehl’s Since 1851 is more than a brand. It’s a devotion. To amazing products, to embrace embedded- attempting to navigate the VICE PRESIDENT, TECHNICAL Christina Yeoh microchip credit card OPERATIONS the fi nest natural ingredients, and to customers and communities, both locally changing landscape of retailing systems. Report Card, page 36 DIRECTOR OF COMMUNICATIONS Lauren Gullion and consumer behavior. Last SR. DIRECTOR OF Joni Antonacci and globally. Here’s to 165 amazing years—we can’t wait to see what you do next! week, top executives, designers PRODUCTION OPERATIONS ON THE COVER: Photograph by DAVID URBANKE CONTROLLER Young Ko and retailers discussed SENIOR PROGRAM MANAGER Derek Ramsey DIRECTOR, ADVERTISING OPERATIONS Eddie Ko strategies at WWD’s Men’s CORRECTION: Kiehl’s was founded in the mid-19th century. DIRECTOR OF TALENT ACQUISITION Andy Limpus Wear Summit. The century was incorrectly identified on page 39 of the DIRECTOR OF IT OPERATIONS Rick Gascon, WWD Milestones section on Kiehl’s 165th anniversary. & PRODUCTION Matt Williamson SENIOR IT ANALYST Carl Foner IT ANALYSTS Don Gerber Ryan Ramos WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2016 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 211, NO. 14 Wednesday, March 30, 2016. WWD (ISSN 0149-5380) is published weekly, except for the fifth week in August, the second week in September, and the third and fourth weeks in December, with one additional issue in February, April, June, August, October and December, by Fairchild Media LLC, which is a division of Penske Business Media LLC. PRINCIPAL OFFICE: 475 Fifth Ave., New TO CONTACT WWD York, NY 10017. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich - Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: EDITORIAL +1-212-256-8130 Please write to WWD, P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at [email protected]. Please include both new and old addresses as printed on ADVERTISING +1-212-256-8102 most recent label. 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4 MARCH 2016, No. 5 WWD.COM Social Studies EDITED BY KRISTEN TAUER THE WEEK IN SOCIAL MEDIA Best Worst

“why so crabby? / because we don’t make jeans with enough legs for them #badjokes” According to market research: no missed Jessica Hart’s birthday celebrations got opportunity here. overly festive.

@madewell1937 @thelsd Brand Cofounder of Moda Operandi

Carven artistic directors Alexis Martial and Adrien Caillaudaud designed a custom dress for actress Liu Shishi’s Bali wedding.

@carven_paris Brand

“Reunion? #GirlPower” Victoria Beckham found a new girl Can Banana Republic’s sales jump as high “#mood after spending too much time in the smoking area this weekend” group in Korea. as Kevin Love? And it’s not even Coachella yet.

@victoriabeckham @bananarepublic @houseofholland Designer Brand Brand

Trending Let’s Follow MARCH MADNESS: Brands are joining MODEL MOMENTS SKILL AT WORK DESIGN LIFE the annual NCAA basketball tournament chatter. @jcrew Let’s face it, nobody works stripes quite like an NCAA ref #marchmadness

@neimanmarcus March Madness is here. Have you found your perfect outfit yet? #neimanmarcus #marchmadness

@RalphLauren Contemplating the bracket strategy. #SelectionSunday #MarchMadness

@Macys Swoosh! Our Sweet 16 sweets are winning major points at today’s game-watch.

#MarchMadness @sebastienmeyer @carolynmurphy @jordanaskill Co-creative director,

Model and actress Accessories designer Courrèges JAB by Apple; Askill Justice by Meyer Billy Farrell/BFA.com/REX/Shutterstock; by photograph Murphy

6 MARCH 2016, No. 5 WWD.COM Follow Us @WWD AGENDA

3

asel, Switzerland — Keep While comparable sales are set to improve in the MEN’S COLLECTION independently owned brand grew 5 percent in calm and carry on. second half, the market is beset by negative factors 2015, his outlook was cautious. “I do not expect ROW 1: Calvin Klein Control, Citizen Eco-Drive That seemed to be the including the strong Swiss franc, weak demand One, Gucci GG2570 and Hublot Big Bang Unico big growth this year. If I do at least what I did last unofficial motto at the Basel- in Hong Kong, terrorist attacks in Europe and Chrono Bi-Retgrograde UEFA Euro 2016. year, I will be very pleased,” he said. world watch and jewelry fair uncertainty ahead of the U.S. presidential election, Raymond Weil lowered its prices by 2 percent The Battle as watchmakers unveiled which traditionally weighs on watch sales. ROW 2: Frederique Constant Manufacture on average in order to be more competitive, but their strategies for beating Swiss watch exports fell 3.3 percent in Febru- Perpetual Calendar, Omega Speedmaster CK the issue of pricing once again divided exhibitors an extended market slump, ary, marking their eighth consecutive month of 2998, Blancpain Fifty Fanthoms Bathyscaphe, at the fair. B Breitling Superocean Heritage Chronoworks, ranging from lowering prices decline, according to the Federation of the Swiss “There is a rule in this profession — you don’t Ulysse Nardin Marine Chronograph and boosting marketing spending to introducing Watch Industry. It forecasts foreign sales of Swiss Annual Calendar and Rolex Air King. reduce prices,” insisted Walter von Känel, ceo Continues smartwatches and more women’s styles. timepieces will remain stable, at best, this year of Longines. The brand, which rules the middle Executives at the big conglomerates — Swatch after posting a 3.3 percent drop in 2015, their first ROW 3: Chopard Mille Miglia GTS Automatic market and is heavily exposed to Greater China, Group, LVMH Moët Hennessy Louis Vuitton and annual decline since 2009. Speed Black, Tudor Heritage Black Bay Dark, saw sales plummet 40 percent in Hong Kong last After a tough and lingering slog, watchmakers Kering — put on a brave face, but many admitted The number of buyers and visitors at Basel- Harry Winston Project Z10, Tag Heur year. “I multiplied my turnover by nearly five over they would be satisfied if they end the year with world was down 3 percent year-on-year to around Carrera Heuer-02T Black Phantom limited the last decade and in 2015, I was flat.” hope they’ve turned the corner and are business stable. 145,000, although media attendance rose 2.3 edition, Patek Philippe World Time The executive, known affectionately as The Chronograph and Zenith Academy Tourbillon “I don’t see a huge drop, but definitely not a percent, organizers said. Colonel due to his military past, uses tactics like Georges Favre-Jacot. holding their breath about the year ahead. huge increase,” said Marc Hayek, chief executive “Some people made the decision not to group singing sessions to pump up his staff. “You By JOELLE DIDERICH officer of Breguet and Blancpain. “We’ve seen a come for cost reasons,” said Elie Bernheim, have to motivate the troops, you have to galvanize very difficult January, February in most brands.” ceo of Raymond Weil. Although revenues at the them, you have to be positive,” he said. ►

8 MARCH 2016, No. 5 WWD.COM Illustrations by VAULT 49 WWD.COM MARCH 2016, No. 5 9 Jean-Claude Biver, ceo of Tag Heuer, hopes it will grow 6 percent in 2016 following a wide-rang- WOMEN’S COLLECTION ing repositioning. “The entry price point is the basis of a company. It’s like a staircase: if the first ROW 1: Boucheron Reflet Bleu deJodhpur, Blancpain Ladybird, La Mini de Dior Satine and step is a foot high, everyone can climb the stairs,” Bulgari Serpenti Incantati. he argued. “So the entry price point must be AGENDA broad, easy to reach and enticing.” ROW 2: Tory Burch Collins, Chanel Boyfriend, Even Tag Heuer’s high-end pieces are aggres- Gucci Green-Red-Green and Swarovski Memories. sively priced. Its Carrera Heuer-02T offers an in-house movement equipped with a tourbil- ROW 3: Calvin Klein Minimal, Harry Winston Emerald, lon complication for a market-defying price of Tissot Bella Ora Piccola and Salvatore Ferragamo $16,000. By comparison, the cheapest tourbillon Gancino. at sister brand Zenith is the El Primero Tourbillon Skeleton, billed as a bargain at $47,600. Chopard marked the 20th anniversary of its vice president, chief strategy and digital officer at L.U.C. collection with the L.U.C. Perpetual Twin, Fossil Group, said of the firm’s smartwatch push. the first in-house movement launched exclusively “We sell 30 million watches a year and all they in a steel case, retailing for $25,760. do is tell time. Imagine now if we can have the “For those who really enjoy watchmaking, they same branding and design and styling, but now may not want to spend $50,000 on a gold perpet- every one of them has enhanced functionality that ual calendar, but they may be OK to spend less matters to customers. If you think about that for and have a beautifully crafted steel case, which is a second, then this has massive scale,” he added. still a beautiful object at the end of the day,” said Ulrich Grimm, creative director of shoes and Chopard co-president Karl-Friedrich Scheufele. accessories design at Calvin Klein, said it was Tudor, the sister brand of Rolex, brought debating whether to enter the category. “We in-house movements into its popular Heritage want to be right and we want to be really also Black Bay collection, including the new Black Bay useful and relevant, to not bring a gimmick to the Bronze, featuring a slightly larger case in a brushed table,” he said. aluminum-bronze alloy. Gucci has postponed the launch of the smart- Peter Stas, ceo of Frédérique Constant, said its band it is developing with Black Eyed Peas competitive price positioning helped it weather frontman Will.i.am, but it presented a new store the previous crisis in 2008 and 2009, but he concept and redesigned watch and jewelry lines, anticipated a difficult year. courtesy of creative director Alessandro Michele. “Those watches that were supposed to be sold “It’s been beyond expectations,” Stéphane in Hong Kong, China and a little bit in Russia, they Linder, president and ceo of Gucci Timepieces and surface everywhere. They surface in the gray mar- Jewelry, said of the impact of Michele’s designs. ket, they surface in the stores with certain brands Among Gucci’s new offerings are runway pieces, giving up to $300, $400 incentive for every watch like the Plexiglas bangle in its heritage green-red- sold, just to try to push out the overstock, and of green “Web” strip, and the new GG2570 line for course, this is also affecting us,” he said. women and men, which channels a Seventies vibe “In 2017, we hope that some of the overstock with cushion-shaped cases. problems around the world have been solved and “With a fashion brand with a big name, we are retailers can really concentrate again on more maybe more resilient because the brand is so constructive matters, instead of just trying to stay strong anyway,” said Linder. afloat,” he added. Chanel unveiled additions to its Boy.Friend col- Some believe the influx of watches on parallel lection, launched last year, ranging from upscale markets will change the face of watch retailing. models with diamond-paved dials to a more “I think that all the problems that we have now day-friendly version on a Milanese mesh bracelet in the real world will be a booster for the e-com- stamped with a tweed pattern. merce business,” said Paolo Marai, president of Dior also harked back to its couture roots with the Swiss luxury division of Timex Group. limited-edition timepieces like the Dior VIII Grand The company sells its Versace and Salvatore Bal Plissé Ruban, featuring an oscillating weight on Ferragamo brands on Amazon in the U.S. and is the dial set with diamonds and mother-of-pearl, in working to sell regular-priced product with Chi- a design reminiscent of a pleated petticoat. nese online retailers Secoo and Vipshop. “Either Harry Winston’s limited edition Premier Pre- you do it, and you control it, or somebody else cious Weaving featured dials inspired by a rare will be doing it,” said Marai. “So it’s much better Japanese technique in which threads of gold are that you start working with all these platforms.” woven with slivers of natural mother-of-pearl. Bulgari, on the other hand, plans to open or its World Time Chronograph Ref. 5930, which “All the problems that we consumer goods business. “Of course, we have to some significant introductions in the segment. They were part of a strong offering of women’s renovate 15 stores this year to capture rapidly pairs its patented world time mechanism with a cut back on a lot of nice-to-haves, but those are The most unexpected was the Samsung Gear timepieces at the fair, including a large selection changing tourist flows. proprietary chronograph movement. The watch have now in the real world must-haves. You need to be heard in the market.” S2 by De Grisogono, studded with more than 100 of diminutive watches. Blancpain celebrated the “You can see very quick shifts and obviously will retail for $73,700. Ulysse Nardin put design and communication at black and white diamonds. At 14,900 Swiss francs, 60th anniversary of its Ladybird watch, originally the winning companies will be those with a global Omega harked back to a sought-after version will be a booster for the heart of its new strategy, dubbed “Roadmap or $15,000, it probably qualifies as the world’s touted as the world’s smallest round watch, with a network, including in travel retail, capable of per- of its Speedmaster, a.k.a. Moonwatch, released the e-commerce business.” 2020,” marking its 170th anniversary with a new most expensive smartwatch. limited edition of 60 with a diamond-set bezel and manently adapting their assortments to a shift,” in 1959. Featuring a silvery dial with three blue advertising campaign and slashing the number of Tissot presented the Smart-Touch, an evolution a mother-of-pearl dial priced at $19,300. forecast Bulgari ceo Jean-Christophe Babin. subdials, the CK2998 will be available in a limited Paolo Marai, Timex Group references in its collections by 40 percent. of its existing T-Touch model that can be con- Boucheron, in the midst of a reorganization The Roman brand unveiled a new high jewelry edition of 2,998, priced at $6,500. “The message today has to be much clearer nected to a smartphone, in addition to peripherals under new ceo Hélène Poulit-Duquesne, high- watch collection, Serpenti Incantati, and a techno- “We’re not a fashion brand, we’re not a hype than in the past. When you look now at how our that allow the wearer to track objects and receive lighted its Reflet watch, launched in 1947, which logical feat, the Octo Finissimo Minute Repeater, brand, we’re not a bling-bling brand — we’re basi- collections are divided, it’s according to design. In detailed weather reports. comes with an interchangeable strap in more than presented as the world’s thinnest minute repeater cally a watch brand that’s trying to make the best soccer championship but it will curb costs in other the past, it was according to the movement,” said Fossil Group confirmed it would launch more 60 options. Two new versions, both in a limited — a watch that chimes the time on demand. watch for a lot of people,” said Omega ceo Stephen areas. “We are not hiring as we used to hire in the Patrik Hoffmann, the firm’s ceo. than 100 wearable products for eight brands by edition of 88, featured dials made from aventurine It was one of several models that grabbed the Urquhart. “We’re a big industrial brand. I always last two years,” admitted ceo Ricardo Guadalupe. Citizen put the accent on technology, cele- the holiday season. Michael Kors ceo John Idol glass or marble. attention of watch connoisseurs. say, every day we have to sell 2,000 watches over Swarovski expects to spend an extra 15 percent brating the 40th anniversary of its Eco-Drive flew in for a press conference in the group’s new Jacques Panis, president of Shinola, explained Within hours of publishing its Baselworld novel- the counter.” Omega will step up its marketing on marketing activities this year. technology with the Eco-Drive One, billed as the headquarters to introduce its Access smartwatch. the allure of the female customer. ties, Rolex was fielding phone inquiries for the new spend this year as official timekeeper of the Sum- “You have to be anti-cyclical in your activities, world’s thinnest light-powered watch. Available in “We think that over time it is going to be not “Ladies are more apt to buy multiple watches steel version of its Cosmograph Daytona, despite mer Olympic Games in Rio de Janeiro. otherwise you will just go with the flow and if the a limited edition of 800, it will cost $6,000. only a very meaningful part of our business, but and have watches as a part of their wardrobe and its $12,400 price tag. Hublot also plans to increase its marketing bud- flow goes the wrong way, you go the wrong way as Unlike last year, smartwatches were not the we believe that one day every watch we make match to what they’re wearing on a daily basis,” Patek Philippe wowed critics and collectors with get, by 10 percent, as timekeeper of the Euro 2016 well,” said Robert Buchbauer, head of Swarovski’s main talking point of the fair, although there were will be connected,” Greg McKelvey, executive he said. “They’re potential repeat customers.” ■

10 MARCH 2016, No. 5 WWD.COM WWD.COM MARCH 2016, No. 5 11 AGENDA So Bad, It’s Good Even though the consumer isn’t shopping, fashion stocks are rebounding as investors try to get in early. By DEBRA BORCHADT

usiness is tough, but stocks wrote, “sales growth in 2016 could be below the presence have performed the best. In the past are coming up — welcome medium-term goal of 8 percent revenue growth month, Burberry Group plc has popped more than to the topsy-turvy world in at constant exchange rates due to the economic, 11 percent to 13.22 pounds, or $18.17, and made a which publicly traded fash- geopolitical and monetary uncertainties around nice comeback considering it has declined by 27 ion companies live. the world.” percent for the past year. The new Yoox Net-a- While the two themes Looking ahead to its fiscal fourth-quarter ending porter Group is up 3 percent in the past month to seem to be pushing the April 2, Ralph Lauren said it needed to clear out 26.43 pounds, or $29.53, capping off a rise of 21 Bindustry in opposite direc- end-of-season inventories. It expects revenues for percent for the past year. tions, investors are actually the three months to be flat to down 2 percent. The Among American retailers, it was the downtrod- taking into account last year’s funky weather and company also projected that foreign tourist traffic den that performed the best. Abercrombie & Fitch the West Coast port disruption, as well as current would continue to be pressured. Lauren’s stock Co. jumped 11 percent in the past month, adding valuations. As a result, they’re betting (and they is down 27 percent to $95.55 over the past year, to the 41 percent stock gain over the past year to always have to bet one way or the other) that the but has risen almost 4 percent in the past month. trade at $31.41. J.C. Penney Co. Inc. exploded with only direction for shares to go is up. Kohl’s said revenues for the current fiscal year a 30 percent increase in the past month and has “My thesis is that investors recognize that sales could range from down 0.5 percent to up 0.5 per- made a 36 percent gain for the year. have improved (and so have margins) since fiscal cent as the company clears out inventory. Kohl’s “The bad news is priced in,” said Deborah yearend. They also know that the odds of having wants to reduce inventory by 10 percent in each Weinswig of Fung Business Intelligence Centre. worse weather for holiday ’16 than in ’15 are one in store by 2017 and is also trimming its store fleet. “I think the story out there is stronger than it’s 100,” said retail expert Jan R. Kniffen, chief execu- The retailer’s stock is off 38 percent to $45.93 for been in a while.” tive officer of Kniffen Worldwide Enterprises. “So, the past 12 months and down 1.6 percent for the Weinswig pointed out that the coming compar- since the ‘bad news’ is out, the water seems safer. I past month. isons will be easier as retailers go up against last actually told my clients that all of the vendors and “I don’t think [retailers] really have any idea year’s port strike and the terrible weather in the all of the retailers were buys, but only after the how much resources they need to devote to their early part of 2015. news was out. That proved prescient.” businesses and how quickly they can turn it into The first quarter of 2015 was colder than normal U.S. retailers just weighed in with 2015 results earnings,” said Jay Silver, a managing director at and the wettest since 2011, according to Planalyt- and generally painted a dark picture of an indus- professional services company CBIZ Inc. “Retail- ics. The rain continued into the second quarter, try in flux, coping with the digital revolution, a ing is so different. How do you drive that to the turning the period into the wettest in 20-plus port dispute that gummed up supply lines and bottom line?” years, negatively hitting store traffic. cold-weather gear hanging on the racks as holiday Silver pointed out that the e-commerce change Weinswig also sees a lot of sentiment around shoppers sweated-out unusually warm weather. has occurred so quickly and is so dramatic that mergers and acquisition activity and expects the Consumer companies are expecting more pain retailers are struggling to adapt to the change. industry could see further consolidation. “We this year, with slow wage growth holding back Implementing a digital strategy is expensive and could see capacity taken out of the market and shoppers even as lower gas prices leave them with disrupts the company’s financial statements. fewer stronger players,” she said. some more spending money. But investors who want to get in early on a good Analysts at Wells Fargo noted that store traffic Seventy-four percent of consumer discretionary thing are starting to buy into fashion. has picked up, with the month-to-date traffic for companies in the S&P 500 have projected negative The 100-issue WWD Global Stock tracker has March proving to be relatively solid. earnings per share for the first quarter of 2016, dropped by more than 4 percent over the past “Following a choppy start to the year, retail according to FactSet. All told, 119 companies out year, but is bouncing back. The group is up almost stocks have regained momentum, as better-than- of the S&P 500 have issued EPS guidance for the 3 percent for the past month, with 67 stocks feared numbers, relatively inexpensive multiples quarter, with 93 negative forecasts and 26 positive. advancing and 33 declining. and fairly stable outlooks have all helped the group The fashion and retail firms that have talked In Europe, companies with a strong e-commerce go through a meaningful re-rating over the past down the coming year vary from higher-end month,” the analysts said. players like Ralph Lauren Corp. to the mass Wells Fargo also found that only one-third of the department store chains like Kohl’s Corp. Several retail group was more promotional than last year. European players brought up currency issues as “The bad news is priced in. The rest were either the same or less promotional. they discussed their outlooks for the year. Kering They pointed out that investors are particularly SA is said to expect volatility in the short term due I think the story out fond of off-price brands like TJX Cos. Inc. and Ross to currency fluctuations and an unsettled eco- Stores Inc. Beauty names like Ulta Salon, Cosmet- nomic environment, while Salvatore Ferragamo there is stronger than it’s ics & Fragrance Inc. and Sally Beauty Holdings Inc. wrote of the geopolitical environment affecting been in a while.” are also big favorites. elements of the luxury sector. The markdown days for fashion stocks might be In its recent earnings statement, Hermès Deborah Weinswig, Fung Business Intelligence Centre coming to an end. ■

12 MARCH 2016, No. 5 WWD.COM Illustration by STEPHAN SCHMITZ WWD.COM MARCH 2016, No. 5 13 We started with three fabrics: jersey, French terry and denim. We tried to create products that Kean Etro matter out of those three CREATIVE DIRECTOR, ETRO INC. fabrications. The goal has always been to keep our business at a very balanced level. So in order Thanks to Alessandro for our business to run we Michele’s designs at Gucci, need to basically maintain the vibrant Etro aesthetic a balance between about is having a moment, too, 40 percent brick-and- and Kean Etro, who leads mortar wholesale and 60 the company’s men’s percent online. We’ve been design team, is welcoming forced to understand, it. He said Michele’s vision utilize and grow our direct- has impacted sales at Etro to-consumer base. in a positive way. What about com- In a conversation with munication with your WWD men’s fashion direc- consumer? tor Alex Badia, the pas- When we first started sionate creative director we got looped into this waxed philosophical about forum. A forum is a little who the Etro customer is, bit of a fashion faux pas. how he’s grappling with That doesn’t sound cool at social media and what he’s all. But what it actually did doing to ensure his brand was it created a layer of remains relevant after 30 transparency between the years. Here are highlights. brand and our customer You didn’t get your and it also helped cultivate start in men’s wear, a cult. Now we communi- right? cate with our customers I started dealing with all on a daily basis through the IT things like software Instagram and also a and hardware. I’m a heavy forum where we have a mathematician so I love moderator and can basi- mathematics. Something cally explain decisions that like one plus one doesn’t “I love tradition. we are making. It’s been always make two and extremely effective for us. that’s Hans Weinberger. I’m always What’s your wholesale That means that numbers working through strategy? are infinite. So when we The To stay exactly where talk about the future of archives and we are at 50 stores. I think social media and all of right now we are in some that, I think we have to deal thinking about of the best retailers in the with eternal beta. So it’s world and I think that basi- something that will change what is tradition cally our goal is to work constantly through time with experts that can tell a and this is the great chal- and how do you story. I’d rather go deeper lenge we are facing in that Men’s with the best stores in the fly away from field. Then I also started a world than spread out perfume business. I went tradition to and really risk having our to school at seven o’ clock brand just be on a table or when I finished working at something new.” on a rack without a story Etro. I had a tutor teaching behind it. me how to use my nose of pressure because Mr. Talk about your and then I built the per- Side West is such an important delivery schedule. fume business out of that. Last week, WWD invited top executives, designers cultural figure and there One thing that is kind I was learning. were a lot of people that of an advantage that How did you get into and retailers to discuss strategies at the Men’s came to that show and we have is the fact that I men’s wear? there was a lot of buzz basically live in the factory I was doing many things Wear Summit in an attempt to navigate what’s real, around it. I felt a great and I’m the consumer. I’m at a time. When I was 14 or responsibility to validate growing with the product 15 I would buy books from what’s a fad and how to remain competitive. that buzz. just like our consumers all over the place and I You told me you not are growing with the prod- would go to flea markets only started an apparel uct. About three months and dress like a general company but also ago I wanted to create an or like a Carabinieri (police- a technology start-up. oversized cropped sweat- man). Then we started a Can you elaborate? shirt with a rib that could collection called Sports I think from our first frame my face. I sat there and Country. It was in developed a cultike fol- years that we’ve been in season onward we’ve and I sketched it. The next competition with Etro, my father out of Montopoli is tradition. But then again, my inspiration. It’s not just shouldn’t travel too much made-to-measure tires? lowing, his less-than-ambi- existence. been in a little bit of a day we worked on the tech which was my father’s. and I started the men’s for example, there’s the me but all great designers because if you travel it’s How are you growing tious wholesale plans and How did you get Kanye survival mode. Not so pack. The following day we It was the typical thing business as it is now. But gender thing with Gucci and great artists. double the trouble and you your business and intro- John Elliott what he’s doing to answer West to come to your much right now, but I can had the sample and two between father and son. we are great friends. that brings a new touch Who is the Etro man? are always worried. ducing it to new custom- DESIGNER the buy-now-wear-now first show? remember when we were weeks later we had the So I didn’t have access to That sort of summa- to tradition. It’s always The Etro man is a gen- Are people trying to ers after 30 years? mandate that’s touching He and I had become first starting with only sweatshirt and we tested the Montopoli shops and rizes the ethos of your cultural in the end. tleman. He’s very gentle. escape reality by wear- I started this thing called everyone in the apparel mutual acquaintances. $30,000 and it forced us it on our e-commerce site. I was traveling from Salz- brand today, which is What inspires you I did this show where you ing your clothes? the Circle of Poets in the industry. Here are some of We actually met at a gym to really learn on the fly. It sold out in about three burg making this collection about a new tradition. Is after 30 years? had this gentleman and Reality escaped reality. last six months and it’s John Elliott is still in the “I momentum and aware- the highlights. and rode a stationary I saw this interview with minutes. That’s the speed and slowly I thought I that new tradition still We are all breathing in this busy man. The busy Reality is not there any- a group of young guys can’t believe it” phase, and ness by innovating on top What year did you bike for like an hour and Bernard Hopkins, a boxer at which our customer could break through by what moves you today? this room, so inspiration man doesn’t have time for more. I think we live in a under 30 and we meet rightfully so. The slight and of his core and offering start the company? a half and just talked. It from Philadelphia who is reacting to product. If designing my pieces I love tradition. I’m is really this. I’m breathing people or for his family. state of illusion. Before the and talk about creativity incredibly polite designer — up streetwear pieces with I started working on was awesome. But the had served time in prison, you have an idea and you and pretending they had always working through freedom because air is So I prefer to work on the wars there was color and and creation. When I say he referred to his acquain- subtle but impactful design the company in 2011 and thing about that show that and he discussed prison can get it out fast and it’s to be repaired. So we archives and thinking everywhere. It’s like ubiqui- other side. The Etro man life. Henry Ford designed poet, I mean musicians, tance Kanye West as Mr. nuances. we formed the company was really cool was that innovation and how prison- something that’s culturally placed them on the men’s about what is tradition and tous. In a way it’s like God. is good at heart. He has cars with lots of colors. architects, sculptors and West — only launched his In a conversation with in 2012. In January 2013 there was great energy. I ers innovate with nothing. relevant and seasonally floor where customers how do you fly away from So I think that is the first a great sense of humor Think of the wheels. They painters. I think they are line three years ago as WWD men’s fashion we delivered our first liken that show to a music So Aaron [Lavee, Elliott’s relevant you can take came in and slowly all the tradition to something step. It’s to be aware that and a sense of irony. were white, red and the only ones that can a basics brand, but he’s director Alex Badia, Elliott products. So it’s been analogy. That was maybe business partner] and I advantage of the market. customers were asking new. It’s not something you can take part in nature. He doesn’t take himself purple, and now it’s all change this situation. been able to maintain talked about how he has just a little bit over three our first EP and I felt a lot really took this to heart. — ARIA HUGHES for that stuff. So I just got that you can stop. Tradition Nature has always been too seriously. I think he black. Why don’t we make — A.H.

Photographs by JOSHUA SCOTT WWD.COM MARCH 2016, No. 5 15 personality and point of to the next dimension. His sends him to see potential Many brands were view on business,” said vision took him to Italy new talents at odd hours added to the Blooming- Kalenderian. “I was more to meet custom tailors or on a moment’s notice. dale’s assortment and Tom Kalenderian than loyal, I was fascinated like Bruno Piattelli, who When he got an urgent have been successful at VICE PRESIDENT, BARNEYS NEW YORK by what they were was making clothes for call asking him to drop attracting a new customer. interested in and it never Marcello Mastroianni and everything and go to Great “I’d be lying if I said it was ceased to amaze me how films by [Luchino] Visconti Jones Street to see the

AGENDA perfect,” Harter said. they never felt that they and [Federico] Fellini. He work of Greg Lauren, he “But we brought in a new If the days of spending I leave?” he said during a hive. A year later, he was were done. It was a consis- worked with Hubert de took the bait. “I walked customer, sell-throughs an entire career at one conversation with WWD’s promoted to management tent learning experience Givenchy and walked into into a loft space filled with have been amazing and company are long gone, senior editor of men’s, and the following year, that was life-changing, in a Huntsman on Savile Row art — clothes as art. I was it’s had this great halo no one bothered to tell Jean Palmieri. Fred Pressman, the son way. I knew how lucky I was and signed a contract absolutely speechless. effect. The categories that Tom Kalenderian. Barneys “You have to look at of founder Barney, hand- at the time and I honestly for 30 years. He created I knew in a moment that it sits next to — the casual New York’s vice president situations like this as picked him for his team. never wanted it to end.” the designers that didn’t this was something great. sneakers, the contempo- of men’s, children’s and never being one reason Working for Fred “were the Kalenderian credited exist at the time — he was [Retail] is one part art and rary designer businesses home has loved his job for or one thing that makes most incredible 17 years of Fred Pressman with ele- actually using tailors as one part math. At the end — have really benefited 37 years. you feel a certain way,” he my life,” he said. vating men’s wear with his designers. This predated of the day, if you don’t feel from this collaboration.” Asked why he stayed said. “In life, everything is “I had such a unique discovery and promotion Nino Cerruti, Mr. Armani, the art, you can’t do the Harter wouldn’t reveal through two genera- always the sum total of experience of being of designers such as Ferré and Versace.” math,” Kalenderian said. the names of the brands tions of Pressmans, the many parts.” exposed to a family that Giorgio Armani. Pressman created Lauren, who repurposed that are performing the founding family, at the Kalenderian is definitely was on the cutting edge of “Exclusivity is one of the awareness, excitement army fabric from tents, best, but said, “There helm, a bankruptcy and a a glass-half-full kind of every aspect of the retail keys of the Barneys brand, and desire that made duffel bags and coats are a couple of brands revolving door of changes guy. When he accepted industry. Their level of dating to the Seventies, consumers feel like they from the Forties, staged we did not carry in the in ownership, Kalenderian a 30-day sales job at creativity and innovation when most of the clothing couldn’t live without the his garments on clothes- past that had the best sounded incredulous Barneys in 1970, he landed, and their constant search was American,” he said. clothes. lines hung with clothes- sell-throughs, so it’s giving that the question had somewhat haphazardly, to do something better “Fred Pressman was chal- Kalenderian said his pins. Kalenderian called the customer something been asked. “Why would in a thriving creative had a deep effect on my lenged to take his store own sense of discovery Barneys chief executive they haven’t seen before. officer Mark Lee and said, And probably the worst “I know you’re superbusy, sell-through was a brand but could you meet me at we’ve carried for years. 7:30 in the morning and So it’s been interesting see this before the guy and telling, and a couple gets on a plane to L.A.? of these brands we’ll Greg is one of our top carry going forward.” vendors today.” Bloomingdale’s installed Lauren’s collection isn’t the pop-ups at its two mainstream, but “the big- best markets as well as gest brands in the world online and promoted the may not work at Barneys,” collaboration through Kalenderian said. “A great social media, e-mail blasts idea can become a great and in its men’s cata- business, but it takes the “It felt like Fashion’s logue. Mattout also was same approach you put hands-on, tweaking the into your top vendor.” Night Out, but shop to ensure its consis- Barneys last month they were buying.” tency with his Paris store. opened a 58,000-square- “He’s not only a designer, foot store on Seventh Kevin Harter, Bloomingdale’s he’s a shopkeeper,” Harter Avenue between 16th and said. After he was done, it 17th Streets, in a portion “reminded me even more of the space that was of his store and he made it occupied by its original more exciting.” downtown flagship, which Harter admitted that closed in 1997 and was perhaps the biggest chal- where Kalenderian started lenge was educating the his Barneys career. sales staff about the new “We decided not to brands, so the store made dabble,” Kalenderian said a big educational push to of the Chelsea store. “It’s get associates “behind it.” a designer store. We have The collaboration has luxury and tailored clothing been a learning expe- uptown on Madison Ave- rience for both parties. nue. We wanted downtown Mattout said it was “very to be different and feel interesting to see how the fresh. I’m surprised how concept [worked] in the successful the store is. It’s American market. I’m glad beating the plan. it’s been successful and “Overall, we’re doing very Kevin Harter and Pierre-Henri Mattout glad it translates so well well, but we have very high in the department store peaks and some valleys,” VICE PRESIDENT, FASHION DIRECTION FOR MEN’S AND HOME, BLOOMINGDALE’S / DESIGNER environment,” he said. It Kalenderian admitted. “We gives him the confidence need to focus on the parts to perhaps open his own of the business that need Retailers need to think the results have exceeded While the idea is a bit really refreshing. I turned look and feel as the Paris store in either New York the most attention right outside the box to keep expectations. unorthodox, it didn’t take to my boss and said, ‘Retail flagship.” or L.A. now to get things working their customers engaged. “This was a moment much convincing for is not dead, it’s alive — if Mattout refers to his For Harter, the success in concert and on an even That was the idea behind for us,” said Kevin Harter, Harter’s higher-ups to give you give them a reason to store as a “men’s wear of the pop-up means keel.” Bloomingdale’s decision vice president of fashion it the green light. “Fashion come to the store.’” concept shop” that there will be others in the Fingering a black brace- to install pop-up shops direction for men’s and directors are like lobbyists One reason for the combines his “passion for future. let on his wrist, Kalende- for PHM Saints Peres, the home for Bloomingdale’s. — we have to go around success, they believe, Japanese avant garde “Going forward, we’re rian said, “My team gave influential Paris-based He said retail today is very and sell not only our stores was the ability to replicate and streetwear and the just going to have to do it to me. What it means is multibrand men’s store challenging and “we need to the vendors, but ideas Mattout’s Paris shop. “We outdoor world.” It’s heavily more and more of these that I’ve hopefully helped owned by designer Pierre- to surprise and delight like this within our own did the buy together, and skewed to sneakers, from collaborations to bring a some young people enjoy Henri Mattout. the customer. I thought institutions,” Harter said. 95 percent of the brand brands such as Pierre new customer — and even what I’ve enjoyed in my The pop-ups opened this would be the way to The night the shop selection [from Paris] is Hardy, Lanvin, Common our existing customer — life. You realize that every about three weeks ago [do it, by giving] some new launched, some 300 men represented in the New Project, Y3 and others, but into the store,” he said. organization is not about at Bloomingdale’s 59th brands and some we had showed up to check it out. York and Los Angeles also offers apparel from “It’s a reason to jump merchandise and stores Street flagship and its carried in the past, but “It felt like Fashion’s Night stores,” Mattout said. the likes of Comme des in a cab and come to a and designs, it’s about store at the Beverly Cen- in a really great edited Out, but they were buying,” “It’s slightly different, but Garçons, Junya Watanabe, brick-and-mortar.” people.” ter in Los Angeles. So far assortment.” Harter said. “And it was basically has the same Visvim and Sunspel. — JEAN E. PALMIERI — SHARON EDELSON

16 MARCH 2016, No. 5 WWD.COM WWD.COM MARCH 2016, No. 5 17 18

MARCH 2016, No. 5 AGENDA proven to be “problematic,” A. Bank. buy its longtimerival, Jos. management’s plansto disagreed withcurrent the company private and floated theideaof taking in June2013whenhe unceremoniously dumped Men’s Wearhouse was chief executive officer of world thathewas fired. embarrassed to tell the George Zimmer That acquisitionhas The founder andformer FOUNDER, MEN’SWEARHOUSE George Zimmer

WWD.COM isn’t has alsosaiditwillclose billion andthecompany the fourth quarter was $1.1 cadence. Thenet loss in aggressive promotional to move away from Bank’s — asTailored Brands tries cent inthefourth quarter in free fall —down 31.9per- ble-store saleshave been so far. Bank’s compara- — withdisastrous results lot of money” —$1.8billion Brands Inc., to borrow “a pany, now calledTailored he said, causingthecom- Zimmer reiterated whathe around thebusiness, what hewould doto turn from theaudienceabout continues to struggle. their fate” asthebusiness level whoare “bemoaning employees atthestore amongthe and anxiety” the audience, citing “fear since Ileft,” Zimmertold done awholelot well 90 Jos. Bankunits. A. 250 stores, including80to In answer to aquestion “I don’t thinkthey’ve act.” searching for my second and immediately “began his 40-year retail career the lessons helearnedin retire; instead, hetook Zimmer wasn’t ready to Men’s Wearhouse, stances of hisexit from embarrassing circum- going on.” they don’t know what’s they’re inaspot where me,” Zimmersaid. “I think sure whatto do, don’t call days whenyou’re not ceo, butonthoseselect you’ll doafinejobasthe almost any dayof theyear, being pushedout: “On ceo DougEwert, upon said hetold hissuccessor, That “act” isGeneration Despite thepublicly renting atuxcomes “At theend ofthe day, we believe down to trust.” said henever regretted Street. AlthoughZimmer the demandsof Wall to rapidly expand to satisfy that causedthecompany went publicin1992, amove Men’s Wearhouse whenit path hasled. it.” Butthat’s where his way you look;Iguarantee “You’re goingto love the and recital of theslogan for Men’s Wearhouse for commercials hisTV net,” saidZimmer—famed technology andtheInter- you probably don’t thinkof service. mand personal tailoring well asZTailors, anon-de- tuxedo rental business, as Tux, anonlinesuitand He was atthehelmof “When you“When thinkof me, watch out.” ratio were to applyto suits, rented. Soifthatsame year andover 10million purchased intheU.S. every than onemilliontuxedos “Right now, there are fewer for suitrentals,” herevealed. there is astrong business ading assuits, soIthink we’re renting are masquer- percent of thetuxedos regional malls. pop-up stores inside he haslooked atopening and-mortar play, although Generation Tux into abrick- he hasnoplansto take destroy.” create, butonlyasecondto ble. Ittakes alifetime to retail. Trust isanintangi- I thinkthisisthefuture of into ouronlinebusiness. practices like tailoring incorporation of high-touch this isachieved through the earning trust, andIbelieve “there are nobackorders. to your wedding,” hesaid, high-touch. Whenitcomes a blendof “high-tech and something thatrequires down to trust,” Zimmersaid, believe renting atuxcomes country. of 500tailors around the Tailors, whichhasanetwork from itssister company, Z to aman’s home, drawing a “promise” to sendatailor surement videos aswell as solution includes self-mea- you get itto GenTux’s fit?” problem,” hesaid. “How do company hasonecommon million inretail revenue. week andjust exceeded $1 25,000 uniquevisitors a Generation Tux boasts nesses. After two years, concept for hisnew busi- Zimmer turnedto thesame it’s not surprisingthat profitable.” less to say, itwas very trucks,” hesaid. “Need- forth to ourstores inour and shippedthemback own dry-cleaning plants dry-cleaned themallinour three milliontuxedos ayear, in 2013, we rented over $400 million. quickly grew to more than $1 million, butthatnumber tuxedo rental sales were its stores. Thefirst year, duce tuxedo rentals inside move,” whichwas to intro- well asits “most impactful made two acquisitionsas Men’s Wearhouse in1999 ings pershare. takes a backseat to earn- and customer satisfaction the stakeholder,” hesaid, shareholder andnot about capitalism is “all aboutthe going public, American “But rightnow, about40 Even so, Zimmersaid “We must focus on “At theendof theday, we “But every onlineapparel With thisasabackdrop, “By thetimeIwas fired To meet thesedemands, — J.E.P. product launches. But the success rate of sentiments to increase preferences andbrand can key into consumer retailers andbrands and predictive analytics, that way. By usingdata that itdoesn’t have to be weis theinertia allface.” the coin,” Petro said. “This old First InsightInc. founder of thenine-year- executive officer and Petro, president, chief fail, according to Greg percent of allproducts retail isn’t easy. Infact, 62 Achieving success But Petro isadamant “It’s really just aflipof PRESIDENT, CEO, FOUNDER, FIRST INSIGHTINC. Greg Petro at a coatfrom Salvatore popular item by far was found thatthemost that data, First Insight and thenanalyzing in New York andEurope about themen’s season men’s runway shows. pany didattherecent exactly whathiscom- apparel realm, whichis doesn’t in thefashion what works andwhat information to determine against demographic cross-referencing it down into thedata and risk-taking,” Petro said. it “requireseducated Surveying consumers That meansdrilling emerged as themost over 2015. Soliddesigns increased 35percent sentiment score that color withanet positive was theoverallNavy top percent score last year. this year, upfrom an8 jumped to 35percent sentiment for thecolor as theaverage positive being trendy thisyear unpopular last year to went from being also found thatred 67 percent. consumer sentimentof an overall positive The style generated Ferragamo, Petro said. The analytics firmThe analytics decisions,” hesaid. more informed buying ing thatintimacy back.” customer level “is bring- said leveraging data ona harder to do. ButPetro they liked.” on thesales floorwhat used to askconsumers with theconsumer. We an intimate relationship the era when “there was merchant, Petro recalled As aformer MayCo. improve decision-making. the sell-through, and use data to “improve is simple, whichisto percent from 2015. popular, trending up6 “It’s really aboutmaking Today, that’s much Petro said thegoal — A.Z. of theequation. “We also those returns,” shesaid. to thesalesthatcreated return-rate variability. a four-time reduction in surement of returns and include real-time mea- that theadvantages of sales,” shesaid, adding weighted trailing average month dividedby the rate asreturns inagiven is to lookatthereturn and sales withinamonth. that includeunitsreceived done inavariety of ways calculate returns, whichis examined how companies on somemath. on, it’s important to focus understand what’s going speakers, shesaidto phy said. Similarto other higher thannormal,” Mur- rates, whichare seemingly from retailers aboutreturn returns. on themindof retailers: True Fit, knows what’s er-facing fittingsolution cofounder of consum- Jessica Murphy, But that’s onlyapart “It ismore correlated “But abetter method Murphy’s lesson “I’m getting alot of calls COFOUNDER, TRUEFIT Murphy Jessica some trends.” etc. — “You canstart to see returns, styles, sizing, is analyzed —to include consumer.” ally works for aparticular “data reveals whatactu- explained. done’ consumer,” Murphy shoppers’ to the ‘one-and- clusters”from “the‘super “sample consumer The analysis alsoincludes across multipleorders. sampling” thatoccurs well as “sequential order and colorperspective, as sampling from asize, style requires lookingatorder Murphy noted. brand andstyle affinities, a variety of bodystats, million consumers with per style, involving 100 and hundreds of attributes offering millionsof styles and footwear brands drawn from 10,000apparel a role. True Fit’s data are said. sumer behavior,” Murphy need to understand con- — ARTHUR ZACZKIEWICZ Moreover, oncethedata As aresult, shesaidthe The process also That’s where data plays WWD.COM

MARCH 2016, No. 5

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MARCH 2016, No. 5 AGENDA acceleration. force equalsmasstimes andtheequationofinertia that includethelawof three laws of motion through SirIsaacNewton’s diately walked attendees Wear Summitandimme- Men’sopened theWWD Strauss &Co., gave ashe tive vicepresident of Levi of Levi’s Brand andexecu- James Curleigh, president you?” at 8:13inthemorning, did getting aphysics lesson “You didn’tthink Curleigh thencited the But thatisexactly what PRESIDENT, LEVI’SBRAND, EXECUTIVE VICEPRESIDENT, LEVISTRAUSS &CO. James Curleigh

WWD.COM you’d be — “take your protein pills 1969 song “Space Oddity” the late DavidBowie’s And after citinglyricsof as theLevi’s brand itself. impact business aswell of afragmented industry forces andthecomplexity and how competitive positioned inthemarket the iconicjeansbrand is analogy to frame how laws,” hesaid. most of scary Newton’s reaction, “which isthe is anequalandopposite that for every action there third law, which states Curleigh usedthat the future?” “or shouldwe innovate for and history,” Curleighsaid, age thebrand’s heritage asked if we shouldlever- company, Iwas often tum,” thepresident said. moments into momen- brands and private labels. from fast fashion, premium has beenunderattack ket where thecompany brand to navigate amar- approach usedby the Curleigh laidoutadualistic and putyour helmet on” — He saidthat150-plus Ifirst“When joinedthe “It’s aboutturning the future.” tether thepast andinvent the brand’s heritage. You [via its Eureka lab]with together ourinnovation accomplished by “bringing said, adding thatthisis the future? lean onits heritage oreye percent were naked.” — thoughtheremaining 3 97 percent market share that theLevi’s brand hada in 1969, “where Ilearned the Woodstock Festival California GoldRush to milestones, from the a presence duringkey years of heritage include Curleigh thenwent on “You doboth,” Curleigh So does thecompany this realization helpedhis he went on, addingthat 6 percent of thecloset,” worldwide leaders of just closets. the share of consumers’ only have 6percent of quickly noting thatjeans denim,” hesaid, before the worldwide leader in I was told that we’re more?” Curleighasked. to your core orexpand for hemispheres. “Do you stick between the two strategic the Levi’s brand oscillates to anapproach where from “an either/or choice” are similarly transformed to cite other dualitiesthat “Really, we’re the Ijoinedin2012,“When For Levi’s, theapproach everywhere inthemarket. name, venti” —whilebeing — “they taught you anew an aspirational experience coffee company created said, addingthatthe Starbucks,” thepresident the other. choice between oneor it doesn’t have to bea Once again, Curleighsaid the aspirational consumer. higher-end products for masses orpresenting being accessible to the ofthe duality either more,” Curleighsaid. the core, andexpand for categories. “Weprotect expansion into other the brand was aripefor No oneknew,” hesaid. in beltsandnooneknew. were theworldwide leader ing news: Itwas Levi’s. “We to reveal theembarrass- day acolleaguecamein the answer, butthenext men’s belts. Nooneknew the worldwide leaderin brand, heasked whowas one of hisfirst days atthe the latter, Curleighsaidon and belts. Speakingabout Curleigh said), footwear wearing Levi’s underwear,” underwear (“Trust me, Iam shirts, jackets, socks, more aggressively into now thebrand ispushing touched apairof jeans. So ing into any product that Levi’s to considerexpand- share of closet.” only share of denim, but to now understand not perspective. ledus “That team to change itsentire business,” Curleighsaid. both. It’s of thevirtue mism of today. You need consumer. simple experience for the deliver aseamless and complex solutionsto that thebackend requires the back,” hesaid, adding front, yet sophisticated in hairstyle: “It’s simpleinthe likened itto themullet Of theformer, Curleigh “aggressive orpatient.” sophisticated” andbeing betweenor “simple striking abalance Levi’s engages ininclude we’re on.” rivets. “That’s thejourney used, thestitching andthe jeans, down to thedenim literally create theirown District, customers can in New York’s Meatpacking ing thatattheLevi’s store signed jeans,” hesaid, add- “such asourcustomer-de- creating abitof exclusivity, —whilealso commodity” sible thatisbecomes a — “without beingsoacces- is to offer accessibility “You doboth, like Another example is In hisview, thatproves That ledhimto push “This isthenew“This dyna- Other dualismsthat — A.Z. partnership becomes and more impactful.” brand gets familiar “I findthat when a with my work, the less transactional less transactional INSTAGRAM INFLUENCER Patrick Janelle million people. represent afollowing of 140 design, travel andstyle and selves leaders infashion Instagram, whoare them- most influentialpeopleon his followers includethe100 follower count. Janellesaid isn’t confinedto auser’s who addedthatimpact impactful,” saidJanelle, less transactional andmore the partnership becomes gets familiar withmy work, visits. café thatJanelleactually only believable ifheldata created acollection with, is the custom suitstart-up he while anevent withSuitable, shot ontheBrooklyn Bridge, suits onlymake sensewhen For example, Ralph Lauren latte andrustic art spaces. around shots of New York, lifestyle, which centers — they must fitwithinhis pictures withhisiPhone Bluetooth clicker to take mostly usesatripodand orchestrated feed —he authentic onhishighly order for brands to remain feed.” content I’m showing inmy context of allof theother about positioningwithinthe very important andIthink advertising hasbecome a pageinmagazine. Native thinks aboutpositioningon “Traditional advertising at BonAppétit Magazine. freelance graphic designer his start inNew York asa ing,” saidJanelle, whogot I have interms of position- similar to theapproach that advertising is, it’s very how important traditional techniques. from classicmarketing strategy isn’t thatdifferent But Janelleadmitted his his popularInstagram feed. exchange for real estate on are beginningto payin influencers thatbrands mer of theYear Award. the first Fashion Instagram- America, whichgranted him cil of FashionDesigners of recognition from theCoun- beautiful photography and four years withhelpfrom his platform over thecourse of 400,000 followers onthe rick, hasamassedaround handle is@aguynamedpat- to of beapart it. Instagram andbrands want ated awell-crafted life on Patrick Janellehas “I findthatwhenabrand According to Janelle, in you“When thinkabout He’s oneof themany new Janelle, whoseInstagram WWD.COM

MARCH 2016, No. 5 cre- — A.H.

21 22

MARCH 2016, No. 5 AGENDA he spendshismoney, Joe you have to seehow and aparent. “To know “Joe,” a28-year-old male a detailed analysis of ket-basket level,” offered behavior ona “mar- into consumerbuying of theservice, whichkeys executive vicepresident tive, Mantis, whois Millennial male? ofshopping cart atypical What exactly isinthe ingly simplequestion: aims to answer aseem- tracking” that service NPD Group’s “checkout Andy Mantissteers To gainthatperspec- EXECUTIVE VICEPRESIDENT, THENPDGROUP Andy Mantis

WWD.COM

that includedlogographic multiple apparel items” period, Joe “bought that inthesix-month ing,” Mantissaid, adding the diversity of hisspend- Buy andHollister. and Aéropostale to Best ranged from Wal-Mart his retail preferences Mantis said, noting that cent of hismoney online,” period, and spent17per- retailers over asix-month City, Iowa, visited 67 buys,” Mantissaid. shops andthebrands he what hebuys, where he “What’s interesting is “Joe, whoisfrom Sioux Alabama, ahandcrafted been joinedby Slightly workwear-inspired apparel. hats, accessoriesand and set out to create its old manufacturing facility Mfg. Co., rescued a60-year- products. quietly create artisanal yet complementary brands a handfulof noncompeting is aworking factory where trial section of Queens, N.Y., Tucked away American Made Nordstrom Rack,” hesaid. at Nordstrom aswell as will shop, for example, andvaluequality and shopping,” Mantissaid. to leantoward one-stop generations whotend items for hischildren. where healsopicked up and $44.78atTarget, at Payless ShoeSource $77.97 atZumiez, $32.08 single dayJoespent also revealed thatina from Wal-Mart. Express andcargo shorts a graphic T-shirt from skinny jeansfrom Zumiez, sweatpants from Hollister, Knickerbocker hassince In 2013, Knickerbocker Millennial malesare “Millennial menseek “This compares“This to other NPD’s tracking data inanindus- middle of thefactory floor. by acatered dinnerinthe local musician, followed guitar performance by a together for anacoustic Coppens andothers came Elliott, Robert Geller, Tim designers Kean Etro, John private dinnerwhere served asthesite of a manufacturer. knife andleatherbag well asPoglia, ahigh-end leather goodsline, as wardrobe variety.” also value fashion and Mantis said. “But they events andexperiences,” national chainstores.” tend to underindex atthe noted, “and asaresult stores,specialty Mantis e-commerce and They gravitate toward favors activewear, too. demographics, and outerwear thanother” group spent “more on generations],” Mantissaid. [as compared to other footwear andtechnology dex ongames, apparel, technology and also earlyadopters of That uniquelocation “Millennials spendon He saidthepopulation “overin- —J.E.P. — A.Z. of differentiation isthe up to $1,695. Butthepoint starting at$695andgoing plaid suit, withovercoats for aDrago gray Glen windowpane suitto $1,995 classic charcoal andblue com range from $595for a tuxedos onknotstandard. in Dubai. an originalflagshipbased national showrooms with form andmaintains eight robust e-commerce plat- company operates a six years ago. Now the friends andfamily almost area andsellingsuitsto a localtailor shopinthe in Dubai, started scaling was anexpatriate living he started hiscompany. Knot Standard, aboutwhy men’s apparel company John Ballay, founder of custom men’s wear,’” said that needsto befilledin “Hey, there isamarket void us to comeoutandsay, this didn’t exist, thatdrove made itridiculousthat hole inthemarket that “It was about Bespoke suitsand Ballay, whoin2010 COFOUNDER, KNOT STANDARD John Ballay aniche, a and grow.” what pushedusto expand possible —andthatdrive is product for asmany as this experience andthis about how canyou create of omnichannel;itwas this way to “tick thisbox didn’t buildthecompany waistcoat. adding extra pants ora contrasting button holes, including stitching, dery, pleatsandupgrades or overall style), embroi- details (buttons, pockets (skinny orwide), jacket customize cut, lapelstyle consumer beingableto assembled, withthe laser-cut andhand- From there, thepieceis that’s uniqueto them. create adigital pattern consumer’s bodysoitcan a 3-Dbodymodelof the measurements to build blazer for $695. it’s trousers for $175ora of eachpiece—whether that goes into thecreation level of personalization Ballay insisted thathe The site asks for afew — RACHEL STRUGATZ Chapman in1987to a founded by Tom andRuth ofthe outskirts London store inWimbledon on “journey” from onesmall related thecompany’s retailer,the U.K.-based e-commerce director for ion.com. success of Matchesfash- has beenthekey to the shopping experience to create oneseamless Connecting the Nicolas Pickaerts, MATCHESFASHION.COM Nicolas Pickaerts dots base, regardless of where of product to itscustomer Matches’ entire breadth launched asaway to offer 2007, theWeb site was selection of brands. In of themwithadifferent 11 additionalstores, all the company opened tomer very fast,” hesaid. you learnto love your cus- village withnolocalfootfall, you fashion sellluxury ina global e-tailer today. “When Over thenext 17years, Matchesfashion.com to and changedits name to company “rebranded” was upandrunning, the international, hesaid. 76 percent of sales are outside theU.K.” Infact, are online andmost are 85 percent of oursales Pickaerts said. “Today, and bricks andmortar,” business was U.K. only they were located. Once theWeb site “Seven years ago, our impressive. laptop, desktop.” with us:tablet, mobile, matter “how they engage the sameexperience no provides customers with responsive Web site” that has resulted ina “fully customers,” hesaid. This the experience for our technology andreinvent fully changethebackend rework itsWeb site. decided to invest and In 2015, thecompany better reflect thechange. The results have been “It took us18months to awake atnight is “What keeps“What us drive to inspire our customers unexpected.” the constant the constant with the men’s wear represents 20 the U.S. andEurope and same-day delivery in is mobile,” hesaid. 45 percent of ourrevenue warehouse inLondon, and tries, allfrom onecentral rate. “We shipto 176coun- a 40percent repurchase customers andthere is retains 65percent of its than $1,000, thebusiness price transaction ismore to itssite, theaverage full- lion uniquevisitors aweek fashion.com hashalf-a-mil- The company offers Pickaerts said Matches- DNA,” hesaid. “It’s about toluxury itscustomers. of itsmissionto provide ion.com hasnot lost sight beginnings, Matchesfash- percent. and traffic from 32to 39 of sales to 26percent has grown from 18percent 2015,with February mobile 2016 Comparing February the acceleration thisyear. even more impressive is to 36percent. “But whatis has risenfrom 10percent while theshare of traffic 5 percent to 19percent, phones have risenfrom deriving from smart- past four years, sales what isbeingfeatured. immediately purchase can clickonimages and shoppable. Customers thing inthemagazineis new —andevery- articles every week with10to 15 duces anonlinemagazine Matchesfashion.com pro- stories through editorial. tell,” hesaid. ence andisastory we can creating apointof differ- design team. “It’s allabout own creative director and men andwomen withits a private brand for both last year launchedRaey, shopper, thecompany with theunexpected.” to inspire ourcustomers night istheconstant drive what keeps usawake at possible,” hesaid. “But the digital asphysical as as digital aspossibleand is to “make thephysical the company’s overall goal their cellphones. to embrace shoppingon Men have beenslower or around 15percent. men’s halfthatof women’s, with thereturn rate in and women’s shoppers, ences between itsmen’s has seendistinct differ- three years. of sales withinthenext will increase to 30percent the company projects it growth and opportunity said men’s isamajor percent of sales. Pickaerts our role is to sellproduct.” we are undernoillusion— love everything we dobut landscape.the luxury “We understands itsplacein Matchesfashion.com things better.” change ourselves to do constantly innovate and old concepts of retail. We we are not stuck inthe content. We are inclusive, it’s abouttheimagery, the product to thecustomer, the way we present that the product selection, “It’s embeddedinour Despite itshumble Pickaerts saidover the The retailer alsotells To appealto this Regardless of gender, Matchesfashion.com Even so, Pickaerts said, WWD.COM

MARCH 2016, No. 5 — J.E.P.

23 Silver Mine O“We are right on the cusp of ‘silver thread’ technology that allow us to make the actual fabric conductive.” InFocus — MICHAEL DENNISON, FLEX

T E H X C T E % I L E T 40 Qore Performance claims that wearers’ hydration levels can be Creating 40 percent stronger. R&D Time OColumbia Sports- wear’s new OutDry Extreme required more than two-and-a-half years of research. a New Climate

From fabric and technological developments in activewear to the growth of sustainability, innovation is bringing fresh products to the consumer.

Rain on Me Let It Snow

Meant to have the effect of a raincoat Adidas Outdoor’s Terrex turned inside out, Columbia Sports- Climaheat Agravic down wear’s OutDry Extreme has a tough jacket has heat guards at the waterproof membrane exterior and a neck, sleeve and waist to pre- soft wicking fabric inside. vent warm air from escaping.

24 MARCH 2016, No. 5 WWD.COM Photographs by CLAIRE BENOIST WWD.COM MARCH 2016, No. 5 25 InFocus

T E H X C T E I L E T Active’s Next Gen Brands are combining fabric development and technology advancements to design clothes that add an array of properties. By ROSEMARY FEITELBERG and MAGHAN MCDOWELL

echnological innovations distance, acceleration, heart rate and exertion through textile and mate- levels for further analysis. rial product development · The Fairfax, Va.-based start-up Qore Perfor- are being felt in all areas of mance specializes in products that help keep ath- the fashion world, but none letes hydrated to try to bolster physical exertion T more keenly than active- and reduce recovery time. Using heat-absorbing wear and outerwear. inserts in athletic apparel that target six pulse Value-added advance- points on the body, the company claims that wear- Columbia ments are highlighted in waterproof, moisture ers’ hydration levels were 40 percent stronger. The Sportswear's high-tech rain gear. control and ultrawarm materials that tend to be $52 hydration sleeves, for example, are designed lightweight to fit the comfort quotient. Perfor- with the brachial artery in mind. Made of a mate- mance characteristics are also important in areas rial that has a melting point of about 60 degrees such as antiabrasion and friction reduction, while Fahrenheit, Qore products are meant to off-load muscular system and help maintain proper health benefits and ways to track them are all in heat efficiently without blood vessels constricting. posture. Made of Pontetorto Technostretch, the constant development. The company developed an “Ice Plate,” a body- body-hugging zip-front jacket is durable and insu- Here’s a range of innovations in front of armor-shaped device meant to be worn beneath lated with wicking properties. The Terrex Agravic consumers: a shirt. In addition to keeping the wearer cool, hooded ultralight rip-stop nylon jacket also fends · Columbia Sportswear’s new OutDry Extreme the Ice Plate will inevitably melt, creating water off wind and rain with bonded seams and elastic required more than two-and-a-half years of that endurance athletes, U.S. soldiers and others bindings. Another near-featherweight option is the research. Designed with durable exterior layers can drink. Qore’s director of sales and business Terrex Swift Climaheat Agravic down jacket, which and microporous interior ones, the garments are development, Doug Burr, said the concept has has heat guards at the neck, sleeve and waist that waterproof and breathable for extreme elements, been pitched to the U.S. Army. keep warm air from escaping. according to Woody Blackford, vice president of · Asics, Adidas, Under Armour, Billabong, Ros- · San Francisco-based Flex is designing and design and innovation. signol, Salomon Group and Carhartt are among the building connected products for Nike, Fitbit, “Our goal is to use these properties everywhere brands using Cocona’s 37.5 technology in fabrics Lumo Bodytech, OMSignal and Ralph Lauren. Flex we can,” Blackford said. that has patented active particles embedded in president of consumer technologies group Michael OutDry Extreme outerwear in the 18-piece fibers to capture and release moisture. The pro- Dennison cited the convergence in how tech inte- collection has an interior membrane to help wick cess was developed by Cocona founder Gregory grates into clothing, from sensors and notification perspiration, he said. Retailing from $100 to $500, Haggquist, whose research found that activated devices to more intelligent types of fabric. OutDry Extreme technology is being used for a carbon, the same substance that water treatment The company has made headway. Technology $200 women’s trenchcoat with external seam tape companies use to filter drinking water, had bene- in the waistband of running shorts, as with Lumo and bonded hem and cuffs. ficial properties beyond odor control. After a lot Bodytech, allows runners to measure how they’re · Nike continues to invest heavily in research of lab time, he determined that activated carbon running and the efficiency of their gait. With a and development and communication, as evi- from coconut shells was well suited to quick-dry detachable electronic device, the shorts can be denced by the brand’s Innovation for Everybody fabrics and help keep athletes cool. washed up to 50 times. event, an Olympic-size marketing extravaganza · Through a deal with Aspen Alpine Guides, Adi- · Earlier this year at the CES consumer tech- in advance of this summer’s Olympics in Rio de das Outdoor suits up hiking, skiing, climbing and nology trade show, OMSignal introduced a smart Janeiro. mountain-biking guides with its Outdoor Terrex bra with a removable module that measures and One highlight was Nike Vapor track-and-field line. As a sign of its commitment to outdoor enthu- analyzes fitness biometrics like breathing, heart uniforms that feature AeroBlades, a bladelike siasts, Adidas Outdoor will sponsor the Aspen rate and exertion, which are connected to an app. accent designed to reduce drag and create lift for Backcountry Marathon for the first time in August. Flex’s subsidiary Multech PCB Technologies Co. runners. Hundreds filed through Moynihan Sta- With an expansive research and development Ltd. is creating bendable printed circuit boards to tion’s 11 product station/installations, with another facility in its headquarters in Germany and another be interspersed with stretchable materials. highlight being the HyperAdapt 1.0, a sneaker that in the U.S., Adidas tests fabrics to try to ensure they “We are right on the cusp of ‘silver-thread’ laces itself via a sensor that tells the sneaker to hold up under extreme climate conditions. technology that allow us to make the actual fabric tighten on its own. “Our fabrics are extremely technical. They conductive,” Dennison said, meaning wearers can · Adidas is also very much about advancing ath- need to hold up in extreme climate situations, transmit information across the garment. letes’ performances with technology. In advance whether you are summiting Everest or hanging · Wearable Experiments collaborated with of the German national team’s 2014 World Cup 300 feet from the side of a cliff,” said Loren MAS Holdings for Nadi fitness tights equipped win, players used the MiCoach Elite Team System Gwartney-Gibbs, key account manager. “Certain with conductive, motion-detecting wires that to monitor their physiological performance. Play- technical fabrics we will share across different provide real-time haptic vibrations that “coach” ers used a small Player Cell device in a TechFit business units.” the yoga-practicing wearer’s body positioning. Sri elite under layer with heart-rate sensors in the One of its newer proprietary fabrics is “cli- Lanka-based MAS Holdings added waved wires fabric. By doing so, they were able to track speed, machill,” a double-knit polyester that is a meshlike into fabrics that are stretchable, washable and fabric with aluminum-silver dots that conduct heat durable. The prototypes were created with yoga in away from the wearer’s body. Available in a handful mind, and work with an app that registers move- of styles, the T-shirt is popular with backcountry ments and illustrates guidance on form. skiers, according to Gwartney-Gibbs, who said, Experts predict expansion beyond fitness track- 50 To the Qore “They need to make sure their core stays dry. If not, ing in wearable tech. Dennison is seeing interest × and they work up a sweat, when they stop, all of a from outdoor companies for safety-improving OQore Performance’s Flex’s Lumo Bodytech heat-absorbing inserts in sudden their body temperature is going to drop.” apparel and accessories such as a transponder that shorts can be washed athletic apparel target six Adidas Outdoor Terrex Stockhorn jacket has could be woven into the sleeve of a mountaineer’s up to 50 times. pulse points on the body. Formation technology to support the athlete’s jacket. ■

26 MARCH 2016, No. 5 WWD.COM InFocus

T E H X C T E I L E T the products are comfortable, easy, soft, ther- increase during spring-summer of 2017, as we mo-regulating and absorb color in a unique foresee a 20 to 25 percent rise compared to this Harvesting flax in the field. way and they are also easy to care for and wrin- spring season,” said Larusmiani chief executive kle-free,” claimed Marie Emmanuelle Belzung, officer Guglielmo Miani. president of the European Confederation of Linen Larusmiani is also working to improve its assort- and Hemp, or CELC. ment of crease-free linen with special lines like its The industry also has worked to improve on “Linen-Stretch” collection. what have long seen to be linen’s drawbacks: its Not that Miani is making excuses for linen’s stiff hand, susceptibility to wrinkling and droopi- wrinkles. “A more sophisticated client respects ness if the weather is too damp or humid. that linen will crease because it is indicative of Larusmiani, which has a license for the global its premium quality, much like how a collector distribution and production of Bellora fabrics, would appreciate the patina on an old vintage is known for its luxury linens. Larusmiani has watch,” he said. been working on a special stretch linen-blended Now under the Loro Piana umbrella, linen yarn for maximum comfort destined for trousers, manufacturer Solbiati unfurled its “Linen-breeze” shorts, jackets and summer suits. The company line of fabrics that are blended with aloe vera.

“The aim is to preserve the typical look of linen and add new performance features.”

Pier Luigi Loro Piana, Loro Piana

is also working on special finishes like wax with The Corona, Italy-based company acquired the water resistant treatments on pure linen in order historic linen mill Solbiati in 2013 to enhance its to diversify the use of the fabrics in outerwear. linen offerings and take advantage of the material’s “During the last three years, our sales of linen underexploited potential. and linen fabrics have been stable, but will surely “Research is centered first and foremost of all in the development of new blends, of which linen is mixed with other fibers,” said Loro Piana deputy chairman Pier Luigi Loro Piana. “The aim is to Turning the preserve the typical look of linen and add new fiber into yarn. performance features.” In the last year, sales of Loro Piana’s linen prod- ucts increased 60 percent and the company sees this trend continuing in the near-term. At the last Milano Unica textile trade fair held in Milan, mills focused on linen more than ever. Tra- ditional wool players like Tollegno 1900 amped up their offering of linen blends in their spring 2017 catalogue, which included pure linen denim and luxe linen, silk and wool blends for spring jackets. Another prominent purveyor and proponent of linen as a sustainable material is the Albini Group, which owns Cotonificio Albini, Albini Dona, Thomas Mason, David & John Anderson Flax to Fashion and Albiate 1830. On April 25 at the The New School’s Parsons “Our cooperative is keen on innovating,” said School of Design, the Albini Group in partnership A modern take on linen Pascal Prevost, president of Cooperative Du Pla- with CELC will unfurl a visual presentation called thrives on innovation. teau du Neubourg in Neubourg, France. “Linen 2.0” that will showcase linen’s journey The cooperative improves its efficiency by using from the flax fields of Normandy to the Albini By SOFIA CELESTE modern equipment in the mill as well as in the factory. fields and has robotized the end of the scutching “Innovation for us is involved in every step of inen is a fabric whose popu- line where the impurities and straw are separated the process, from the spinning to the weaving of larity has ebbed and flowed from the flax fibers, Prevost explained. the fabric. Our proposal of linen is expansive, with fashion. But in recent Nearby, linen spinner Safilin, which was not limited to just pure linen. New blends and years, technology and inno- founded in 1778 in Sailly-sur-la-Lys, has been new finishing techniques give new life to linen,” vation have helped enhance working on developing a special process for knit- said Albini Group ceo Silvio Albini, who added L linen’s luxury veneer — and ting low-gauge or high-gauge yarns on circular or that the company’s spring fabrics included linen demand has followed. flatbed knitting machines. Much like wool spin- with cotton and linen with silk, while it offered The processing Testament to that are ners, linen yarn makers are focused on thinner stage. 100 linen fabrics with a flannel finish for winter the designer women’s wear items being sold by linen fibers. to demonstrate that the fabric can be adapted for retailers such as Net-a-porter: a $5,990 linen blend “The main challenge was to spin fine counts of use in apparel for all seasons. Saint Laurent bomber jacket, a $1,470 Tom Ford 26, 39 and 50 NM,” said Safilin president Olivier “We offer a multitude of colors, yarn-dyed as linen peplum top and $965 “Lola” linen Charlotte Guillaume, referring to how linen yarns are mea- well as piece-dyed, reinventing the way linen is Olympia sandals, to name a few. sured and which stands for length in meters per presented today,” Albini said. ■ The innovation fueling demand for this sus- one gram of mass. increasing push toward the use of sustainable and tainable fabric starts in the blue floral flax fields These yarns now offer vast possibilities and can ethical materials and manufacturing processes. of Belgium, France and the Netherlands. The flax be knitted in single- or two-ply from 2.5 gauge to Flax is the ultimate eco fiber, experts noted. There heartland produces the finest linen due to its 28 gauge. is zero water needed, zero genetically modified mild coastal climate, which allows the flax stems “Circular and flatbed knitting produce high-end organisms and zero waste, as almost everything is 60% 2017 to maintain the necessary oiliness, while farmers jerseys with a distinctive handle and sheen, as well utilized in a flax flower — the seeds are eventually are able to cultivate a fungus special to the region as piqué fleece, heavy gauge, double, crepe and used for everything from beauty oils to food. Sales of Loro Piana's Larusmiani forecasts that grows on the flax stems, a process that helps glitter,” Guillaume explained. “The innovation has become a success story linen products increased a 20 to 25 percent

the linen fibers detach from husks. Helping to fuel the demand for linen is fashion’s because industries worked together and because Flax Linen and Hemp — European of Confederation — European CELC by Photographs 60 percent last year. sales gain in 2017.

28 MARCH 2016, No. 5 WWD.COM WWD.COM MARCH 2016, No. 5 29 InFocus

T E H X C T E I L E T First Federal Smart Fabrics Summit Set Commerce Department to hold showcase for tech fabrics. By KRISTI ELLIS

he Obama administration is of industries — apparel, technology and textiles the public sector agencies about the capabilities joining forces with leaders — together to develop capabilities in fabrics that of the products. in fashion and technology could transform how athletes, soldiers and first · Consider new policies related to standards and to promote collaboration responders interact with their clothes and the intellectual property protection. on new smart fabric tech- environment. The wearable tech area has spawned much T nologies that could give “The thing that is exciting and challenging attention in recent years as companies launch momentum to the Made in about smart fabrics is that it really involves all finished commercial products into the market. America movement. three sectors working together to make products Ralph Lauren, for example, introduced Polo Under the direction of the U.S. Department of that work,” Joshua Teitelbaum, deputy assis- Tech, a compression shirt that reads biological about their wearer or environment to other devices have to bear while they are in the field,” he said. Commerce, the administration will devote a full tant secretary for textiles, consumer goods and and physiological information via sensors knit- through embedded sensors and conductive yarns. “Fiber and textile innovation is going to be key day to a “Smart Fabrics Summit” on April 11 in materials at the Commerce Department, who is ted into the product, at the U.S. Open last August. The global market for smart clothing is expected for all of those things.” the nation’s capital. spearheading the agency’s initiative, told WWD Levi Strauss & Co. and Google Inc. launched to grow to $600 million by 2020 from $17.2 million The fiber and textile institute will be an import- The day will feature David Lauren, executive in previewing the summit. “I think this is going the “Project Jacquard” initiative last year to bring in 2013, according to research from Tractica LLC. ant factor in being a place of innovation for ap- vice president at Ralph Lauren; Josh Walden, se- to be a great venue for each of those sectors to wearable tech to traditional apparel like jeans Teitelbaum said other analysts think the market is parel as well as smart fabrics, he added. nior vice president and general manager of Intel; get together.” and shirts by incorporating conductive fibers into already on track to surpass that figure by 2020. Textile employment and export data has Commerce Secretary Penny Pritzker, and sev- Teitelbaum said the purpose of the summit, woven textiles, essentially putting functions avail- There are skeptics who question whether the shown “this continued resurgence over the last eral other government officials and small busi- jointly hosted by Commerce and the Internation- able on smartwatches directly into woven fabrics. new field is a gimmick or a true niche industry few years” in the textile industry. U.S. textile ex- ness executives who are developing some of the al Fabrics Association International, is threefold: Under Armour introduced its “Speedform that is developing. But companies don’t appear ports increased nearly 40 percent to $17.6 billion most cutting-edge technologies and fabrics in the · Foster collaboration between the three indus- Gemini 2” smart shoe that tracks a user’s runs. to be listening and continue innovating and in- in 2015 from $12.6 billion in 2009, according to wearable-tech area. tries. The high-tech products have a range of capabil- troducing new products. Teitelbaum sees it as an Commerce data. Advances in technology have brought a trio · Raise awareness and increase education among ities, including tracking and communicating data emerging industry. Average annual employment has increased 0.6 “As the administration’s ‘innovation agency,’ percent, by 1,500 employees, from 2013 to 2015. as the secretary [Pritzker] likes to say, I think we Several companies, such as PurThread, a mak- can play a really important role to try to bring all er of antimicrobial thread, will provide demon- of the different players together and say that this strations of their products at the summit, he said. appears to be an emerging industry,” Teitelbaum “That is a high-tech textile product that may said. “Let’s see if, with the industry, together we be a good fit for smart fabrics because they don’t can identify policies that might accelerate the de- interfere with any electronics in the garments,” sign of these products by U.S. companies or man- Teitelbaum said. “There is that interesting com- ufacturing them in the United States.” plement between an electronics integration and Teitelbaum said there could be opportunities an advanced textile.” for the U.S. textile industry, which has seen some Teitelbaum said he began analyzing emerging hints of revival as a “Made in America” sentiment industries when he was appointed last year and

“Let’s see if. . .together we can identify policies that might accelerate the design of these products by U.S. companies.”

Josh Teitelbaum, U.S. Commerce Department

has improved in recent years. smart fabrics was one of those identified. After To that end, the administration launched a speaking to several industry leaders and academ- competition for $150 million public-private in- ics, the idea of a summit was born. vestment in a new textile manufacturing innova- “One of the pieces I thought was missing from tion institute last March. that conversation…was the policy piece. That’s Dubbed the “Revolutionary Fibers and Tex- what we are trying to contribute here.” tiles Manufacturing Innovation Institute,” it will As such, the summit will feature a panel on in- seek to “ensure that America remains at the tellectual property protection, as well as a discus- leading edge of fiber science” through a $75 mil- sion about developing standards. lion public investment that will be matched by He added that more information on the sum- more than $75 million of private investment in mit can be found at smartfabricssummit.com. ■ researching, prototyping and commercializing fi- bers with “extraordinary properties,” the White House said. The applications, currently under re- view, were open to leading manufacturers, uni- $ $ versities and nonprofit organizations. 600m 150m “It is focused on technical textiles of all kinds, The global market for smart The White House's whether that’s extraordinary flame resistance clothing is expected to grow competition for a $150 or fabrics that have photovoltaic capability to to $600 million by 2020. million investment in a capture sunlight and store that as energy or [fea- textile manufacturing

Illustration by Oliver Munday Oliver by Illustration tures] that really reduce the weight that soldiers innovation institute.

30 MARCH 2016 , No. 5 WWD.COM WWD.COM MARCH 2016, No. 5 31 InFocus

T E H X C T E I L E T “The average consumer still believes sustainable cashmere yarn is dyed with herbs, berries and Prabal Gurung checks doesn’t equate with quality,” she said. roots such as the blue-indigo tones of the woad out the fabrics. That’s why she likes to call this new generation plant from the spinners’ native Cagli territory. of fabrics “responsible innovation” with a “3-D At the most recent Pitti Filati fair, Lanificio approach: creativity, innovation and responsibil- dell’Olivo showed off its sustainable “Going Lessons in ity — three distinct elements when combined… Green” project that uses organic cotton yarns for guarantee a competitive market advantage.” a cleaner, more classic approach. Bettoni explained and showed several examples Tollegno 1900 has stressed its investment in of fabrics that are part of CLASS. Ecotec by Marchi sustainability through areas such as methods to Sustainability & Fildi, which drew Kunz’s interest, transforms decrease water usage, and in more energy-efficient pre-dyed fabric clippings into high quality cotton machinery, and Zegna Baruffa has developed a CFDA designers take part in CLASS workshop. yarns, thereby saving water and energy and reduc- special technology with Turin’s Politecnico Uni- ing landfill space. versity that was applied to wool to manufacture By ARTHUR FRIEDMAN Re.Verso is a line of re-engineered wool and H2Dry, a high-tech yarn that’s washable for travel cashmere upcycled using pre-consumer fabric wear and activewear. t was a teaching moment. responsible sourcing. Christopher cutoffs. Bettoni showed a Gucci fall 2016 coat being Additional finalists for the CFDA + Lexus Fashion Kunz Brands and designers CLASS is a multiplatform network that show- made using Re.Verso cashmere. Initiative are Dezso by Sara Beltran, Katie DeGuz- chosen to participate in cases exclusive fashion, textiles and materials cre- New Life’s polyester, made using post-consumer man and Michael Miller from Killer Collection, and the CFDA + Lexus Fashion ated using the latest technology that demonstrates plastic bottles, is now being utilized by Gruppo- WWake’s Wing Yin Yau. Britt Cosgrove and Initiative were schooled on sustainable design solutions. cinque in a new range of jacquard prints, while At the conclusion of the program, the three Marina Polo of SVILU. I sustainable innovation in Ten brands have been selected to participate Asahi Kasei’s Roica Eco-Smart stretch is made brands that have most significantly advanced their textiles this month as part in the CFDA + Lexus Fashion Initiative, which from 50 percent pre-consumer recycled elastane companies’ ethos to a higher standard of sustain- of their 17-month virtual focuses on the environmental, social and financial take on great designs and are eco-friendly.” that saves water and has better dye uptake due to ability and social responsibility will be awarded residency program. challenges faced by the industry today with the He said he “loved the recycled wool and cash- its lower oil content. the grand prize and two runner-up prizes will also An integral aspect of the program, designed to intention of problem solving through new materi- mere” and was looking into using some in his There was also Asahi Kasei’s cupro, a cellulose be handed out. The winner will receive $150,000 inspire thought leadership, facilitate the imple- als, processes and systems, including responsible collection. Kunz said Nicholas K also uses a lot of fiber made from recovered cotton waste that's and each runner-up will be awarded $50,000. ■ mentation of innovative business practices and sourcing, ethical manufacturing, supply chain cotton in the collection and is sensitive to yarns being used by such mills as Jacytex, which also create meaningful change within American fash- transparency, scalable business strategies and and fabrics produced with methods that use less uses the company’s Roica fabric. ion, is to elevate the level and percentage of sus- consumer literacies. water. Gurung, like many of the attendees, seemed tainability within apparel, jewelry and accessories Among the finalists in attendance were Chris- In the end, he said, “It’s more difficult to sell impressed by the hand and look of the materials design businesses. topher Kunz from Nicholas K, Prabal Gurung, sustainability to the consumer. It’s easier to sell presented, as pieces were passed around the room $ 17mo. Doing the teaching was Giusy Bettoni, founder Britt Cosgrove and Marina Polo from SVILU, Erin a product and then explain it to the consumer for the old “touchy feely.” 50k of CLASS, or Creativity Lifestyle and Sustainable Isakov of Erin Snow and design team members in some way to show that it’s an added benefit.” While not part of Milan-based CLASS, many Each runner-up to Finalists in the CFDA + Synergy, whose purpose at the two-hour workshop from Tome and Zero + Maria Cornejo. During the workshop, Bettoni also stressed Italian mills have been pioneers in textile sustain- the CFDA + Lexus Lexus Fashion Initiative at Council of Fashion Designers of America head- Kunz agreed with a key point Bettoni made that the “commercial viability of the sustainable ability and innovation. Fashion Initiative will be are involved in a 17-month quarters, was to facilitate a conversation regarding during her presentation that “sustainable fabrics material and fabric” was essential. Cariaggi’s Systema Naturae collection of awarded $50,000. virtual residency program.

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5H[\YLHUKYLZLHYJO[VNL[OLY YARNS FOR CONTRACT AND APPAREL 5H[\YLNP]LZ\Z[OLÄULZ[^VVSZ/\THUPUNLU\P[`[YHUZMVYTZ[OLTPU[VZVTL[OPUN\UPX\L Filo Milano JHWHISLVMYHPZPUN[OLWLYMVYTHUJLVMW\YL^VVSÄILY[VUL^SL]LSZ9L(J[P]L/+Y` Re.Verso™ holds an LCA (Life Cycle Assessment) SPINNERS WITH PASSION SINCE 1962 HUK2>VVS/+Y`YLWYLZLU[HUPKLHSZ`U[OLZPZVMJYHM[RUV^OV^HUK[LJOUVSVNPJHS study that shows the following savings*: KNITWEAR YARNS YLZLHYJOIV[O`HYUZOH]PUNZ\WLYPVY[LJOUPJHSJOHYHJ[LYPZ[PJZHUKHLZ[OL[PJ CO2 WaterE nergy Pitti Filati, Spin Expo X\HSP[PLZVMHIZVS\[LL_JLSSLUJL

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32 MARCH 2016, No. 5 WWD.COM WWD.COM MARCH 2016, No. 5 33 Emma Greenwell has just changed birthday. She attended the London ing up was the granddaughter of the Greenwell recalls. “I was back into her fitted striped T-shirt Academy of Music and Dramatic owners,” she says. “I really wanted to standing in the penthouse and frayed jeans after wrapping Art for a year — “It was good, it made be the receptionist because I liked to of the hotel next to Cate a photo shoot, and in the process me realize that I didn’t want to go to practice my accents on the phone, Blanchett and Quentin has drawn a gaggle of oglers over drama school” — before trying her and I did that a little bit but I think they Tarantino, it was a her cropped Rachel Comey denim. luck at pilot season in Los Angeles. knew that I was doing that so they crazy first night. And “They’re coming out with these in “Shameless,” the Emmy-winning were like, ‘No.’” his daughter was black, which is going to be really Showtime drama, was her first On her last shift, the night before then in ‘Shameless’.” sick,” she says. “The dark is really job. She booked it when she was moving to L.A., she happened to As most Brit thes- good.” pian darlings do, she’s The 27-year-old English actress done the period-piece is set to discuss “The Path,” the “I’ve only ever bought one designer thing, first in February’s Greenwell in Hulu show premiering Wednesday “Pride and Prejudice handbag and I thought that I would like “The Path.” in which she stars alongside Hugh and Zombies,” and next Dancy, Aaron Paul and Michelle feel something different — which I didn’t alongside Kate Beckinsale Monaghan. But first, there’s some — so I don’t think I’ll ever do that again” and Chloë Sevigny in “Love fashion to attend to — she’s just & Friendship,” out in May. But returned from the front row of Miu — Emma Greenwell first comes “The Path,” Hulu’s latest Miu’s fall show in Paris and it needs full-bodied drama, which is about rows included. Greenwell, for her to be discussed. 22. “I was meant to be leaving on a serve André Balazs, owner of Los the personalities embedded in a part, is a natural scourer. “I’ve only “It was spoiling, it was divine,” she Saturday to go back to London, and Angeles’ famed Chateau Marmont religious cult and its pathological ever bought one designer handbag,” says. “We were out of the show by I booked the job on Tuesday,” she and London’s Chiltern Firehouse. “I’d success. Greenwell’s character Mary she says, “and I thought that I would around 4 p.m., but then there was the says. “I had to rent a car, get a place, never been to L.A., I had no idea who is “an incredibly vulnerable girl who like feel something different — which I dinner with Mrs. Prada, and so all of and I didn’t end up going back to he was or what the Chateau was,” gets swept up in the idea of being didn’t — so I don’t think I’ll ever do that us sat in the bar of the hotel eating London for nine months.” she says. “My boss said, ‘Oh, Emma’s saved,” she says. “She grew up in a again.” ■ hamburgers, in the most beautiful Her arrival onto the American moving to L.A. tomorrow,’ and André trailer park, her mom died when she clothing, trying to keep ourselves acting scene is, fittingly, something asked what time I got in on Friday was young, and she’s a heroin addict. pristine.” out of a Hollywood motion-picture and I was like, ‘I get in at 7,’ and he The show opens where there’s been LEFT: Hellessy’s silk and cotton Greenwell was born in Greenwich, fairy tale. In the months before said, ‘OK, come to my party’.” a tornado through her trailer park jacquard top and Rachel Comey’s Conn., to a French mother and an “Shameless,” she’d been working The casually mentioned party and The Path arrive to help out.” cotton denim jeans. Delfina English father; the family moved as a server at London’s Michelin- was, in fact, his Golden Globes bash Promoting a show obviously can Delettrez ring. BOTTOM: Burberry’s back to London’s South Kensington silk and satin dress and Laurence starred, Thames-hugging restaurant — not bad for a new actress’ first create more acting opportunities — Dacade’s shoes. Hirotaka earring; neighborhood before her second The River Café. “My best friend grow- night in L.A. “I was so underdressed,” as well as fashion ones, Miu Miu front Ariel Gordon ring; Sydney Evan ring.

Green Lit Actress and sometimes Miu Miu front-rower Emma Greenwell makes it big in Hulu’s “The Path.”

By LEIGH NORDSTROM Edited by TAYLOR HARRIS

Photographs by CHRIS MIGGELS Styled by MAYTE ALLENDE Hair by CHRIS NASELLI using KERASTASE at STARWORKS ARTISTS Makeup by MIN MIN MA using TOM FORD at STARWORKS ARTISTS WWD.COM MARCH 2016, No. 5 35 Report Card Super Slump Henry’s style suits the mediocrity of his movie reviews and Dave shows us how Santa slims down in the off-season.

DThe Dodgers flat DThe bubblegum DOur new D Jaime looks cap is unflattering pink lip gloss Superman is really her best when she on his extra-round coordinates well hot, but he looks veers ever-so- face. If he’s trying with her Pepto-pink better wearing his slightly retro with to be incognito, footwear, and her superhero tights her look. Here, the he should opt for skin looks nice for than this boxy navy bold brow, porcelain a different style having just flown. three-piece suit. skin and citrusy-red of headwear That said, the hair is lip are elegant and DThe repp red and wraparound way, way too long, tie reads aging timeless. sunglasses. and the sparkly Wall Street D There’s a slight headscarf is DThe combo of banker. A tonal Fifties air here. The black and white bewildering. navy tie would print feels kinetic normally reads DThe rose gold have been a more — it’s a wonderful minimalist chic, watch feels very sophisticated cacophony. The but on him, an 2009, but it’s choice. asymmetric ruffled all-black palette upstaged by tiers are ladylike DAlthough this would suit his those terrifying look is very Clark and the blue-tinged new body type. talons. Kent, dressing up lace inject a girly The high-top The jeans are muscles is not touch. D D NIM E

sneakers with black overdistressed, an easy task. A D The metallic D I N

socks do nothing to done in an two-piece notch strappy heels add D

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T elongate his legs, unfortunate, lapel suit would just the right degree P nor do they frame bleached-out color have been a better of modernity and his tattoos. A low- and are way too tight. option, especially if polish. top would be less he needs to fit the DSomething never aggressive. to invest in? Barbie costume and cape work boots. underneath. denim D+ D B- A- beyond the blues

Rob Kardashian Blac Chyna Henry Cavill Jaime King

DThis is a very DThe high-volume DThe Seventies DNow we know Kardashian hair makes his feel of her rose- what happens when beauty look. She’s receding hairline hued aviators works someone retires bronzed, glossed more apparent. His with her undone, from late-night and slicked-back. forehead appears glam bedhead. The TV. They turn into Her lips are really endless. lenses should be garden gnomes popping — perhaps a touch smaller, with an appetite DThere are times she’s gotten hold of in life in which though. for ill-fitting aerobic Kylie’s lip kit. clothes. the turtleneck DWhat’s going D Another day, is the only on here? Is it a DThe buffalo print another choker. Is way — this is walk of shame? T-shirt looks like a anyone else over one of those A victory lap? giveaway from a this trend? times. In any case, it’s cheap Las Vegas all coordinated: steakhouse — in D The pinwheel DThe worn- An Advertising Opportunity effect of her in leather the lacy bra, 1984. If he wants top, in gingham jacket works high-waisted briefs, to sleep in it, fine, no less, is with the dotted tights and but don’t wear it Issue: April 20 dizzying. A print well-fitting leather-panel knee- outside. highs. The oversize as consuming jeans; however, DFor a 68-year- Ad Close: April 6 as this should be he should have camo jacket thrown old, he has great worn more cleanly considered a over it gives her a legs, but the oversize Materials: April 18 — the graphics of slimming, vertical- laissez-faire cool. ill-fitting gym shorts the top and the striped knit. He She could have don’t flatter his volume of the pants looks barrel-bellied. zipped it up to hide athletic frame. overwhelm her We hope this is her lingerie but she Thank goodness (and us). also an early April’s doesn’t give AF and he’s not wearing Fools joke. that’s why it works. cycling shorts. C+ C B+ FAIL Kardashian, Delevingne, Chyna and King photographs by Broadimage/REX/Shutterstock; Cavill by David Fisher/REX/Shutterstock; David Fisher/REX/Shutterstock; Cavill by Broadimage/REX/Shutterstock; by and King photographs Chyna Delevingne, Kardashian, Splash News by Letterman Buckner/Variety/REX/Shutterstock; by Lovitz John Salangsang/BFA/REX/Shutterstock; Jenner by

Kendall Jenner Jon Lovitz Cara Delevingne David Letterman TYRH FOR MORE INFORMATION, PLEASE CONTACT PAMELA FIRESTONE, ASSOCIATE PUBLISHER AT 212 256 8103 OR [email protected] 36 MARCH 2016, No. 5 WWD.COM WWD MILESTONES    W   W THE AGE OF KIEHL’S 165 YEARS

What started in a corner shop next to a pear tree in mid-19th-century New York has grown across 54 countries in 165 years. Kiehl’s Since 1851 now ranks as the sixth largest BEAUTY CEO SUMMIT skin-care brand in the world.  ŽfˆˆT 

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00 MONTH 00, 2015 WWD.COMPhotograph by CLAIRE BENOIST WWD MILESTONES I THE AGE OF KIEHL’S Male Awakening The Classics “Men are more conscious than ever of their appearance, and “We definitely have been building the more open to talking about it or treating it than ever before.” perception of Kiehl’s as a skin-care expert and

CHRIS SALGARDO, KIEHL’S USA that has been very important to our success.”

CHERYL VITALI, KIEHL’S SINCE 1851

The Power Serum is one of the new products joining the Kiehl’s lineup.

40 MARCH 2016, No. 5 WWD.COM Photograph by CLAIRE BENOIST WWD.COM MARCH 2016, No. 5 41 WWD MILESTONES I THE AGE OF KIEHL’S

the company calls a KCR, or a Kiehl’s and with a San Francisco exclusive in Neiman Mar- customer representative. The custom- cus in June. The same month, there will be a Euro- ers are quizzed about their most press- pean rollout in France, Spain, Italy and Germany. ing concerns and, based on the analy- Distribution will expand into Asia in the fall. sis, the top two problems are targeted. Vitali estimates that the Apothecary collection Two skin-specific Targeted Complex- will be available in 150 doors around the world es, or boosters, are picked out of the five by the time the first phase ends in mid-2017. By available in the line and paired with a the time the second phase ends in mid-2018, the Skin Strengthening Concentrate, or base. number is expected to grow to 300 doors. Eu- The formula of the concentrate in- rope, including the Eastern Bloc, has been fertile cludes 35 percent Squalane and 20 per- territory, and so has China. cent of Skin Lipid Complex. The distribution is out of a global total of 1,550 Geoffrey Genesky, Kiehl’s head doors worldwide, 25 percent of them in the U.S. chemist, said the ingredient blend of Vitali stressed that not every door is suitable for the concentrate base has been mixed to the new line. “It will be where we think the cus- fortify, moisturize and protect the skin tomer fit is, and then we have to have the right lev- barrier. el of service and in-store presence. Consultation The two boosters are meant to be is required,” she said, noting that the store has to mixed with the base concentrate at be able to accommodate a detailed discussion. “This is for people who are very engaged and interested in combatting. . .skin-care concerns.” Cheryl Vitale, Kiehl’s Since 1851

home, thus activating the mixture. The Kiehl’s, a subsidiary of global industry leader company cautions that the boosters L’Oréal, does not break out sales projections, and are so potent that they cannot be ap- Vitali declined comment when asked about the plied to the skin directly without being new line’s prospects. But industry sources esti- mixed with the base. mate that Apothecary Preparations could gener- The retail price of the three-item set ate 15 million euros, or $16.9 million at current is $95, and depending on rate of usage, exchange, in the first year after the line is fully one mixture can last up to six months, rolled out in the first phase. As for the total busi- according to Vitali. ness on a global basis, industry sources estimate The line is designed for men and Kiehl’s generates sales of about $1 billion a year women and Vitali thinks customers will worldwide. Executives had no comment. be drawn from Kiehl’s current base. Speaking of the wider significance, Vitali pref- “Part of our current customer base will aced her answer by saying, “We definitely have be interested in this level of service,” been building the perception of Kiehl’s as a skin- she said. “But I think we will also get care expert and that has been very important to Photograph by JOSHUA SCOTT what I call ‘the involved age fighter.’ our success. This allows us to take and elevate the Red Carpet Coverage “This is very much for Boomers and personalized skin-care service to really cement Millennials who are starting their anti- our expertise in skin care. The other thing, which from the Year’s Premiere Events. aging fight,” she said. “This is for people who are is really important, it allows us to extend directly very engaged and interested in combatting some from our apothecary heritage.” of these skin-care concerns.” She noted that both Chris Salgardo, president of Kiehl’s USA, not- Back to the groups could be confronting the same problem, ed, “As a brand that consistently creates unique like redness. and efficacious products, we’re looking forward “We are going to get new consumers to Kiehl’s to offering our customers this new, interactive Prestige, Praise Apothecary because of two reasons,” she asserted. “One — experience.” this mind-set is pretty broad, pretty global. But Vitali summed up the opportunity: “We are A new range of skin care personalizes also it’s a pretty unique proposition. If people very much expecting it will help bring new cus- haven’t been sure that Kiehl’s has something for tomers to Kiehl’s. We don’t advertise; we rely on solutions to common problems. them, this gives them a chance to revisit us.” word of mouth. This will give us a lot of visibili- & Privilege Asked what the new line will contribute to a ty to people who maybe don’t know us but may

By PETE BORN market that already offers products targeted to want to revisit us.” ■ Chinsee George by photograph Product the same maladies, Vitali said, “First of all, this iehl’s Since 1851 is break- is more targeted. You can buy products that ad- ing new ground to mark dress many issues, including the ones that we OThe new Apothecary An Advertising Opportunity its 165th anniversary. suggested, but not in this focused combination, Preparations. Rooted in skin-care in- and not with the level of efficacy and concentra- K novation and proud of its tion we have. I have to point to the service piece penchant for service, the as well,” she said, underscoring the value of the The Met Gala Cannes Film Festival The CFDA Awards beauty chain is playing consultation process, during which the custom- on its strengths with the er’s worries can be brought into focus. Issue: May 4 Issue: May 11 Issue: May 25 launch of Kiehl’s Apothe- “Personalization is a growing trend, whereby Ad Close: April 20 Ad Close: April 27 Ad Close: May 11 cary Preparations, a move aimed at tapping into customers are seeking products ‘just for me.’ Materials: Materials: Materials: the growing personalization trend. This customer wants to be engaged in the con- April 25 May 2 May 16 “We had not done anything like this before,” versation, wants to be part of determining the said Cheryl Vitali, Kiehl’s worldwide general best solution for themselves,” Vitali continued. manager and a seven-year veteran. “Apothecary Preparations is driven by an assess- The new Apothecary line consists of a collec- ment between the customer and KCR — not by a tion of skin-care concentrates that are designed device. The customer’s participation is a key di- to deal with five skin concerns — redness, wrin- mension of our personalization service.” kles, rough texture, large pores and dullness. The The Apothecary line will make its debut in products are meant to be used in conjunction Kiehl’s New York flagship in Greenwich Village in THE POWER OF CONTENT with an in-store skin analysis conducted by what April, then follow up in London at Harrods in May FOR MORE INFORMATION, PLEASE CONTACT PAMELA FIRESTONE, ASSOCIATE PUBLISHER AT 212 256 8103 OR [email protected] 42 MARCH 2016, No. 5 WWD.COM WWD MILESTONES I THE AGE OF KIEHL’S

Not surprisingly for a man who has used the teins and adenosine — that are lightweight and ed to gain traction and become a trend phe- brand for 26 years, Salgardo also sees men’s as a fast-absorbing. “Our serum is the ultimate war- nomenon in 2014,” Salgardo said. “Now beard huge market opportunity — an opinion he shares rior, while our moisturizer is the ultimate guard- oil is in the top five Google searches amongst with IRI and NPD, which identified the combined ian protecting the skin’s barrier, all topped off by men, and 67 percent of New York men have mass and prestige men’s treatment category in my powerhouse product, Eye Repair, to lift and some sort of facial hair. So in June we will the U.S. as a $6.9 billion business in 2015, a gain reduce wrinkles and dark circles,” Salgardo said. launch our first beard grooming oil. It tames of 3 percent over the previous year. And he be- Men’s skin thickness rapidly declines and unruly facial hair while deeply nourishing dry, lieves the category will continue to grow. For in- hydration levels decrease as it ages. Deeper ex- itchy skin underneath.” stance, Salgardo said, 58 percent of males 18 to pression lines and other lifestyle factors such The oil will sell for $27 for 1 ounce. Sources es- as smoke, UV rays, pollution, poor preventative timated that it could do $3 million at retail in its behavior and insufficient skin-care regimens also first year on counter. contribute to differences in aging between men Salgardo also published the brand’s first book, “Last year, the men’s and women. “Manmade,” in December with Random House category saw 8 percent Also in April, Kiehl’s will introduce Smooth imprint Clarkson Potter. Glider Precision Shave Lotion. “This builds on “‘Manmade’ is the first of its kind in that it not market growth, heavily our heritage of formulating shave products spe- only provides answers to basic concerns, but also cifically for men’s skin,” Salgardo said. “This offers a unique blend of product-agnostic guid- driven by activity in the new, unique lightweight gel-lotion is infused with ance and lifestyle tips,” Salgardo said. “And it’s antiaging arena, where Cupuacu butter, Kukui nut oil and cypress and showing: 31 percent of ‘Manmade’ book buyers eucalyptus essential oils. It is made for all skin are first-time Kiehl’s shoppers.” Kiehl’s was up 34 percent.” types and is designed to enable a faster, more Salgardo also discussed the company’s strong precise shave, especially for those with side- philanthropic efforts. “As a company that’s phil- Chris Salgardo, Kiehl’s USA burns, etc., that they need to work around. It in- anthropic, giving back to the communities in stantly softens facial hair and provides hydrating which we do business has always been a part of protection.” Industry sources estimated that it our heritage,” he said. “To be able to do the HIV 24 and 63 percent of males 25 to 34 globally use a could do $4 million to $5 million in its first year and AIDS, children’s, environmental and wom- facial moisturizer. on counter. en’s work that we do is the greatest gift. We’ve “Men are more conscious than ever of their One of Salgardo’s favorites is due in June: proven you can be a successful company while appearance, and more open to talking about it or Nourishing Beard Grooming Oil. “Beards start- doing good in the world.” ■ treating it than ever before,” Salgardo said, add- ing that “2015 was the first year there was more interest in men’s hair than women’s hair on Google [by around 6 percent], meaning real guys are showing a real interest.” And for men, it’s not all about shaving cream and toothpaste anymore. “It’s not just that men are becoming more comfort- able with committing to regular grooming OA collection of new men’s prod- ucts, along with Salgardo’s book. routines; we’re actually hearing increasing demands for more sophisticated formulas such as antiaging serums and eye-area treat- ments,” Salgardo said. Kiehl’s consumers are 40 percent male and 60 percent female at present, Salgardo said. “Last year, the men’s category saw 8 percent market growth, heavily driven by activity in the antiaging arena, where Kiehl’s was up 34 percent, and the oil-control cate- gory, where Kiehl’s was up 23 percent,” he said. “And though Kiehl’s products can all be used by both genders, we know that men tend to have thicker, oilier, sweatier, denser skin. With that in mind, our men’s products are formulated with ingredients that spe- cifically target that skin type. Our routine recommendation for most men is: cleanse, shave, moisturize.” Salgardo aims for Kiehl’s new Age De- s he looks back on Kie- fender franchise, due in April, to fill some hl’s past, Chris Salgardo, of those needs. “The Age Defender collec- who was named presi- tion works to strengthen skin, minimize dent of the U.S. business the appearance of fine lines and wrinkles A in 2006, also has his eyes and visibly firm skin. Our chemists identi- Chris Salgardo, firmly on the future. fied the unique requirements and challeng- First up: expansion. es of men’s skin and responded with a 1-2-3 The brand will open a solution: Power Serum, Moisturizer and freestanding store in Ha- Eye Repair, which is my powerhouse prod- waii on Oahu in April, and Salgardo is eyeing new uct.” The serum will sell for $50 for 2.5 oz., markets and adding stores to existing ones, such the moisturizer for $40 for 1.7 oz and $52 as a store at the World Trade Center and new loca- for ww2.5 oz., and the Eye Repair $30 for tions on the West Coast, which Salgardo regards 0.5 oz. While Salgardo declined to discuss Easy Rider sales projections, industry sources esti- as the label’s second home. Its first retail outlet Kiehl’s U.S. president sees a outside of its own freestanding store was at Berg- mated that the Age Defender lineup could dorf Goodman in 1971, followed by Neiman Mar- generate first-year retail sales of $8 million. men’s boom ahead. cus in Beverly Hills in 1977. The brand is now sold The serum, the brand’s first for men, is in Bergdorf Goodman, Neiman Marcus, Saks Fifth designed to penetrate the skin to deliver By JULIE NAUGHTON Avenue, Nordstrom, Bloomingdale’s, Dillard’s, active and highly concentrated ingredients “Beard oil is in the top five Google searches amongst men, and

Macy’s and Lord & Taylor. Chinsee George by photograph Product — cypress extract, a blend of hydrolyzed pro- 67 percent of New York men have some sort of facial hair.”

44 MARCH 2016, No. 5 WWD.COM Photograph by JOSHUA SCOTT WWD.COM MARCH 2016, No. 5 45 WWD MILESTONES I THE AGE OF KIEHL’S

2000 2001 After customer demand becomes overwhelming, Kiehl’s opens its second freestanding store in the Jami Morse Heidegger sells Kiehl’s to Cosmair, the Pacific Heights district of San Francisco. Plans for American licensee of L’Oréal that will later become 1990 Boston and Los Angeles locations are unveiled. A Short History of Kiehl’s L’Oréal USA, for an estimated $180 million. 2002 The first international freestanding store By ELLEN THOMAS 2000 opens in London’s Covent Garden. 2006 1851 1884 Ultra Fac ial Cream, a richer version of the Brunswick Apotheke opens as a Apprentice John Kiehl purchases original Ultra Facial Moisturizer, is introduced. neighborhood pharmacy on the corner of the original East Village location and 2005 13th Street and Third Avenue in New York. 1850 renames it Kiehl Pharmacy. Dermatologist Solutions is launched with three items, including the Powerful Strength Line-Reducing 2010 1920s Concentrate with a 10.5 percent level of stabilized Under Morse’s influence, customer sampling vitamin C, said to withstand degradation. is encouraged, and “try before you buy” 1860 becomes the pharmacy’s motto. Kiehl’s also 1870 begins listing its ingredients on product labels. 2009 With the launch of Midnight Recovery Concentrate, Kiehl’s becomes an early 1880 165 adopter of the facial oil trend. 2010 LifeRide for amfAR, a 12-day charity motorcycle 2014 YEARS trip, is introduced to fund AIDS research. Routes The Oil Eliminator skin-care range, developed with over the years have ranged from San Diego to a proprietary technology based in aerogel, an San Francisco to Miami to Washington. 1890 insulation material used by NASA, is introduced. An outer-space-themed social media campaign 2016 ensues, centered on the launch of a weather The Smithsonian Institution adds 1960s balloon carrying the new products to an elevation 10 products to its Kiehl’s collection, 1921 In an attempt to appeal to male customers, of almost 120,000 feet above the Earth. which numbers more than 100. Aaron Morse begins displaying his collection Irving Morse buys the pharmacy from John 1900 of vintage Harley-Davidson and Indian Kiehl, introducing skin and hair products motorcycles as decor inside the pharmacy. under the name Kiehl’s Since 1851. 1961 Aaron Morse takes over the family 1910 business from his father, Irving.

1969 1920 Kiehl’s Lip Balm #1 is launched. 1971 Bergdorf Goodman becomes 1930 the first wholesale account. 1964 Blue Astringent Herbal Lotion launches. Store regular Andy Warhol loves it so much that he only buys it in its largest size, a 32-oz.bottle. SINCE 1851 1940 KIEHL’S HEALING SO MUCH MORE 1950 THAN SKIN 1960 CONGRATULATIONS ON 165 YEARS OF CARE

1970s 1970 Ultra Facial Moisturizer and 1988 Creme de Corps are introduced. As its first foray into “adventure testing,” Kiehl’s sponsors the first ascent of Mount Everest’s East 1988 Face without supplemental oxygen. Climbers are Jami Morse Heidegger, daughter of Aaron 1980 supplied with skin-care formulas from the com- Morse, takes the helm of the family business. pany to protect skin from the elements.

46 MARCH 2016, No. 5 WWD.COM WWD.COM MARCH 2016, No. 5 47 WWD MILESTONES I THE AGE OF KIEHL’S

Introducing a new advertising opportunity

Business Insights Align your brand with WWD’s New Series. Where the Industry Comes for the Inside Scoop.

The Executive Next Wave: Search Where Millennials Issue: 04.06 Want to Work. Close: 03.23 Issue: 04.06 Materials: 03.28 Close: 03.23 Materials: 03.28 Security, Fraud & Loss Prevention Issue: 08.10 Evolution Close: 07.27 The Future Materials: 08.01 of the In-Store of Payment Experience Issue: 06.08 Issue: 06.08 Close: 05.25 Close: 05.25 Materials: 05.30 Edgy by Design Materials: 05.30 Staying true to its apothecary roots is at the forefront of Kiehl’s store design strategy, leading the brand’s outposts to feature Mr. Bones the skeleton and a smattering of test tubes under chandeliers and neon lighting. “We’re New-York-born-and-bred, so we always stay true to our East Village roots, keeping it edgy through eclectic design elements like wall murals, graffiti, exposed brick walls and neon lights,” said Maria Gustafson, Kiehl’s senior vice president of global creative. “We commissioned a mural from graffiti artist group Tats Cru outside of our Hell’s Kitchen store as a nod to the gritty history of the neighborhood, and a full-service barbershop caters THE POWER OF CONTENT to men and references the look and feel of early New York barbershops.” —ALLISON COLLINS FOR MORE INFORMATION, PLEASE CONTACT PAMELA FIRESTONE, ASSOCIATE PUBLISHER AT 212 256 8103 OR [email protected] 48 MARCH 2016, No. 5 WWD.COM Photographs by JOSHUA SCOTT LIP TREATMENT SUN PRODUCT CONGRATULATIONS • CHAPSTICK Total Hydration 100% Natural • JERGENS Natural Glow Instant Sun Sunless Tanning Mousse • CLÉ DE PEAU BEAUTÉ Lip Serum • LA ROCHE-POSAY Anthelios AOX Daily Antioxidant Serum • FRESH Sugar Nourishing Lip Balm Advanced Therapy with Sunscreen SPF 50 2016 CEW • GLAMGLOW Poutmud Fizzy Lip Exfoliating Treatment + • NEUTROGENA® Cool Dry Sport Sunscreen Spray SPF 70 Wet Lip Balm Treatment • SHISEIDO COSMETICS AMERICA Ultimate Sun Protection CLEANSER & SCRUB HAIR COLORING PRODUCT • HONEST BEAUTY Magic Balm Lotion Broad Spectrum SPF 50+ • • BIORÉ Pore Penetrating Charcoal Bar • L’ORÉAL PARIS Excellence Age Perfect Hair Color • MURAD Rapid Collagen Infusion for Lips ST. TROPEZ Gradual Tan in Shower Tanning Lotion • • GLAMGLOW Powercleanse Daily • ORIBE HAIR CARE Airbrush Root Touch-up Spray SUPERGOOP! Defense Refresh Setting Mist SPF 50 • E=FK?JGGEAF? BEAUTY Dual Cleanser RUSK Deepshine Color Touch Up • NEUTROGENA® Ultra-light • SCHWARZKOPF Color Ultime Coloration • AMERICAN CREW Liquid Wax OGE=FKK;=FLE9KK • Cleansing Oil • STYLE EDIT Root Touch Up • CLINIQUE Clinique for Men Charcoal Face Wash AVON Attraction for Her • • OLAY Regenerist Luminous • ZOTOS PROFESSIONAL Agebeautiful Root Touch-up • HARRY’S Daily Face Wash COTY INC. Katy Perry Mad Potion Brightening Foaming Cleanser Temporary Haircolor • JACK BLACK Double Header Shampoo + Conditioner • FLOWER Sparkling Garden Fragrance INSIDER • ORIGINS Dr. Andrew Weil for • • MARY KAY COSMETICS Cityscape Eau de Parfum LAB SERIES SKINCARE FOR MEN Future Rescue Repair Serum Origins Mega-mushroom Skin Relief HAIR SHAMPOO/HAIR CONDITIONER • NIVEA Men Sensitive Cooling Post Shave Balm • REVLON Love is On Eau de Toilette AWARD FINALISTS Micellar Cleanser • CLAIROL Hair Food Sulfate Free Honey Apricot • SONIA KASHUK Eau de Toilette in White Etheriana • SIMPLE® SKINCARE Micellar Cleansing Conditioner E=FKK;=FL ICONIC BEAUTY AWARD MASS Cleansing Water • DOVE Quench Absolute Ultra Nourishing Shampoo • BPI SHISEIDO Salvatore Ferragamo Acqua Essenziale OGE=FKK;=FLHJ=KLA?= ACNE TREATMENT • AQUAPHOR Healing Ointment • • • DRYBAR Detox Dry Shampoo Colonia AERIN Rose de Grasse Parfum DR. JART+ Dermask Clearing Solution • CHAPSTICK Classic Original EYE PRODUCT MASS • • • • KÉRASTASE PARIS Résistance Soin Premier Thérapiste CHRISTIAN DIOR Sauvage COTY INC. Marc Jacobs Decadence KATE SOMERVILLE Eradikate Mask Foam-activated Acne • • COTY INC. Rimmel Wonderlash Mascara • DOVE White Beauty Bar Treatment • LIVING PROOF Perfect Hair Day (PhD) Dry Shampoo GIORGIO ARMANI BEAUTY Acqua di Gio Profumo • ESTÉE LAUDER Modern Muse Le Rouge Eau de Parfum • • NEUTROGENA ® Make-up Remover Cleansing Towelettes COVERGIRL Plumpify Mascara by Blastpro • • • • NEUTROGENA® Rapid Clear® Stubborn Acne Spot Gel ORIBE HAIR CARE Bright Blonde Shampoo for Beautiful Color JOHN VARVATOS Dark Rebel MICHAEL KORS 24k Brilliant Gold Eau de Parfum • • ® L’ORÉAL PARIS Voluminous Superstar Mascara • Q-TIPS Cotton Swabs • PETER THOMAS ROTH CLINICAL SKIN CARE Acne-clear TOMMY HILFIGER FRAGRANCES TH Bold Eau de Toilette • NARCISO RODRIGUEZ PARFUMS Narciso Eau de • • VASELINE® Jelly Original MAYBELLINE NEW YORK The Falsies Push Up Drama HAIR STYLE/CARE PRODUCT • VIKTOR&ROLF Spicebomb Eau Fraîche Toilette Invisible Dots Mascara • • • AVEDA Thickening Tonic YVES SAINT LAURENT Black Opium SHISEIDO COSMETICS AMERICA Ibuki Multi Solution Gel • NEUTROGENA® Nourishing Long Wear Eye Shadow + ICONIC BEAUTY AWARD PRESTIGE • BUMBLE AND BUMBLE Don’t Blow It H(air) Styler MOISTURIZER MASS • YES TO TOMATOES Detoxifying Charcoal Mud Mask Built-in Primer • BUMBLE AND BUMBLE Surf Spray • DRYBAR Triple Sec 3-in-1 • BURT’S BEES Intense Hydration Nourishing Facial Water • ULTA BEAUTY Champagne Eye Shadow Primer • CLINIQUE Moisture Surge Extended Thirst Relief • FEKKAI Pre-soleil Hair Mist • LANEIGE Water Bank Moisture Cream SPECIAL AWARDS ANTI-AGING MASS • COTY INC. OPI Infinite Shine • • • JOICO Hair Shake Finishing Texturizer Spray L’ORÉAL PARIS Youth Code Skin Illuminator Tinted All-in-1 AVON Anew Power Serum EYE PRODUCT PRESTIGE NEW! BEST BEAUTY APP • FRESH Sugar Lip Treatment Sunscreen SPF 15 • Moisturizer SPF 20 • LANEIGE Firming Sleeping Mask LIVING PROOF Blowout • BENEFIT COSMETICS Roller Lash Super-curling & • • MOROCCANOIL Treatment Original • NEUTROGENA® Hydro Boost Water Gel COTY INC. Sally Hansen Manimatch • L’ORÉAL PARIS Revitalift Volume Filler Daily Re-volumizing Lifting Mascara • • ORIGINS Clear Improvement Active Charcoal Mask • OLAY Regenerist Luminous Overnight Mask DRYBAR Serum Concentrate • HAIR TOOLS BURBERRY Eye Colour Cream • L’ORÉAL PARIS Makeup Genius • URBAN DECAY Naked • • YES TO CUCUMBERS Cooling Hydrating Mist SONIA KASHUK Detox Purifying Black Mask • • BABYLISSPRO Rapido CHRISTIAN DIOR Diorshow Mascara • PERFECT CORP US YouCam Makeup • VICHY Liftactiv Supreme • • CHI Smart Gemz Zirconium Titanium 1” Hairstyling Iron CLINIQUE Chubby Lash Fattening Mascara • SEPHORA to Go MOST BUZZED ABOUT AWARD MASS • • MOISTURIZER PRESTIGE YES TO GRAPEFRUIT Pore Perfection Brightening Peel • SMASHBOX COSMETICS Brow Tech Pencils DEVACURL Devadryer & Devafuser • AERIN Rose Oil • THE GLAM APP • BIORÉ Deep Cleansing Charcoal Pore Strips • • YSL BEAUTE Mascara Volume Effet Faux Cils GHD Platinum Styler • CLINIQUE Dramatically Different Moisturizing Cream • DARK AND LOVELY Au Naturale Moisture L.O.C. ANTI-AGING PRESTIGE • SARAH POTEMPA, INC. Beachwaver S1 • ECO BEAUTY AWARD Lock It In Sealing Cream • T3 MICRO, INC. Pro I Professional Hair Dryer COTY INC. Philosophy Ultimate Miracle Worker • COTY INC. Philosophy Microdelivery Overnight Anti-aging Peel EYE TREATMENT Presented by Givaudan Multi-rejuvenating Cream Broad Spectrum SPF 30 • DOVE Quench Absolute Supreme Crème Serum • DERMALOGICA Age Smart Overnight Retinol Repair • AVEDA Botanical Kinetics Energizing Eye Creme • LIP PRODUCT MASS • DARPHIN 8-flower Nectar Oil Cream AU NATURALE COSMETICS • JOHN FRIEDA Beach Blonde Sea Wave Sea Salt Spray • ESTÉE LAUDER New Dimension Shape + Fill Expert Serum • CLINIQUE Smart Custom-repair Eye Treatment • • FRESH Seaberry Skin Nutrition Booster BABO BOTANICALS • L’ORÉAL PARIS Colour Riche La Palette • COTY INC. Rimmel Provocalips • GLAMGLOW Flashmud Brightening Treatment • COTY INC. Philosophy Ultimate Miracle Worker Eye • ® • CLEAN RESERVE • NEUTROGENA Hydro Boost Water Gel • COVERGIRL Outlast Longwear Lipstick SK-II Mid-day Essence • ORIGINS Three Part Harmony Oil-infused Serum for Multi-rejuvenating Eye Cream Broad Spectrum SPF 15 • EO PRODUCTS • FLOWER Lip Radiance High Shine Lip Lacquer Renewal, Repair and Radiance • IT COSMETICS Your Skin but Better CC+ Eye Cream SPF 50+ NAIL PRODUCT • JURLIQUE MOST BUZZED ABOUT AWARD PRESTIGE • • SHISEIDO COSMETICS AMERICA Future Solution LX • L’ORÉAL PARIS Colour Riche Le Matte Lip Pen SHISEIDO COSMETICS AMERICA Ultimune Eye Power • BUTTER LONDON Patent Shine 10x Nail Lacquer • TEADORA • COTY INC. OPI Colorpaints Replenishing Treatment Oil • NYX COSMETICS Liquid Suede Cream Lipstick Infusing Eye Concentrate • CND Rescue Rxx Daily Keratin Treatment • ESTÉE LAUDER Modern Muse Le Rouge Eau de Parfum • • ULTA BEAUTY Shiny Sheer Lip Gloss YSL BEAUTE Forever Light Creator Dark Circle Corrector • COTY INC. Sally Hansen Miracle Gel 2.0 Topcoat INDIE BRAND BEAUTY AWARD • KIEHL’S SINCE 1851 Daily Reviving Concentrate BATH AND BODY MASS • ESSIE Gel Setter Presented by Piper Jaffray • MAKE UP FOR EVER Ultra HD Foundation • ® FACE PRODUCT MASS LIP PRODUCT PRESTIGE • AVEENO Daily Moisturizing Sheer Hydration Lotion YSL BEAUTE La Laque Couture Pop Water • ARIA BEAUTY • ORIGINS Original Skin Renewal Serum • • LANEIGE Cushion Concealer • BURBERRY Kisses • JERGENS Wet Skin Moisturizer ZOYA Naked Manicure Lavender Perfector • BLIND BARBER • URBAN DECAY Naked Smoky • • LA ROCHE-POSAY Effaclar BB Blur • CHARLOTTE TILBURY Matte Revolution LA ROCHE-POSAY Cicaplast Baume B5 • COLOR WOW • • L’ORÉAL PARIS True Match Lumi Liquid Glow Illuminator • CHRISTIAN DIOR Addict Lipstick Sensational Color SKINCARE TOOLS NIVEA In-shower Body Lotion • FARMACY QVC BEAUTY QUEST AWARD • • NYX COSMETICS Highlight & Contour Pro Palette Hydra-gel Core Mirror Shine • AMOPE Extra Coarse Electronic Foot File with Diamond Crystals OLAY Fresh Outlast Cooling White Strawberry & Mint Body Wash • FOREO • 111SKIN • ® • SONIA KASHUK Undercover Liquid Concealer • CLINIQUE Pop Lip Colour + Primer • CLARISONIC Alpha Fit PALMER’S Coconut Oil Formula Coconut Oil Body Lotion • TULA • ARIA BEAUTY • ULTA BEAUTY Demi Matte Foundation • ESTÉE LAUDER Pure Color Envy Liquid Lip Potion • ILUMINAGE BEAUTY Skin Rejuvenating Eye Mask • EVER SKINCARE • SMASHBOX COSMETICS Be Legendary Matte Lipstick • PANASONIC Micro-foaming Cleansing Device BATH AND BODY PRESTIGE • FICTIONS FACE PRODUCT PRESTIGE • YSL BEAUTE Volupté Tint-in-Oil • PROACTIV® Deep Cleansing Body Brush • AHAVA Cactus & Pink Pepper Dry Oil Body Mist • KOPARI BEAUTY • • TRIA BEAUTY, INC. Beauty Age-defying Eye Wrinkle • AVEDA Stress-fix Composition Oil BURBERRY Face Contour • TRÈSTIQUE • COTY INC. Avojuice • CLINIQUE Beyond Perfecting Foundation + Concealer Correcting Laser • • ELIZABETH ARDEN Eight Hour® Cream All-over Miracle Oil ESTÉE LAUDER Double Wear Makeup to Go Liquid Compact SPONSORED BY: • FRESH Cocoa Body Exfoliant • LAURA MERCIER Silk Crème Moisturizing Photo Edition • MOLTON BROWN Heavenly Gingerlily Caressing Foundation Body Polisher • SMASHBOX COSMETICS Camera Ready BB Water • YSL BEAUTE Touche Éclat Blur Perfector

BE THERE WHEN THE WINNERS ARE REVEALED AT THE BEAUTY AWARDS LUNCHEON ON MAY 13TH! RESERVE TICKETS AT CEW.ORG. Real Girls

Models once walked the runway in uniform beauty looks, but in recent seasons, backstage makeup artists and hairstylists have stepped away from the tools, products and highfalutin creative inspiration — letting each individual stay true to her own features and style.

By ELLEN THOMAS Photographs by DAVID URBANKE Makeup by GRACE AHN Hair by HELEN REAVEY ackstage at the fashion shows, a quiet London, each model sported a different hairstyle. revolution is under way. “Especially this season, she wanted the girls to be them- Runway hair and makeup has selves, and I think the casting had reflected that, too,” long served as the finishing touch makeup artist Diane Kendal says of the Céline show and its B for a designer’s vision, with models designer, Phoebe Philo. Kendal keyed the makeup look. “It’s turned out in identical beauty looks in Europe, too…for the past few seasons, designers [globally] to unify a particular collection. That’s have kind of wanted the casting to reflect [the] individual, to beginning to change, both in the U.S. have [each model] have sort of a personal feel.” and to a lesser extent, Europe. The past few runway seasons Lyne Desnoyers, executive director of makeup artistry, have seen fewer makeup and hair products being used to MAC Cosmetics, tells WWD, “We’ve seen this individualized distort and transform heads and faces into a designer fantasy. beauty trend in Europe in shows such as Charlotte Olympia, Instead, distinct features are emphasized, where they once I’m Isola Marras, Iceberg, Marques’ Almeida, Giambattista were concealed. The beauty look has shifted to multiple, Valli and Emanuel Ungaro. The idea is to give each model different looks reflective of the models themselves, who are a beauty look to highlight her own individuality, while still cast to highlight their unique features and personal style. staying true to the designer’s story.” “Every single show I’ve done [this season], the big trend Millennials and their younger, more superconnected sib- is individuality. Sometimes a girl will walk into a show and lings, Generation Z, are growing up in a society that embraces we’ll be like, ‘She looks great — leave her alone.’ Literally not diversity in a way that generations before them did not. touching,” says hairstylist Anthony Turner. “With my generation, I felt that we were more adaptable to The digital age is at a juncture where selfies are aggressively a [societal] norm, whether it be in beauty or fashion. Looking shared on social media, Millennials control the marketplace at Ally and Taylor, it’s like, ‘If this doesn’t fit into what I like and fashion is no longer governed by a central point of view. or what is meaningful to me, I’m not going to bother,’” says “Accentuating what’s unique about yourself if you want to Jenny Frankel, founder and chief executive officer of Nudes- or not — honestly, there are no hard-and-fast rules — is really tix, a cosmetics line she founded last year and runs with her a celebration of more diversity, more uniqueness [and is] teenage daughters. more unconventional, which is the new conventional now,” Individual beauty expressed on the runway is indicative of says John Demsey, executive group president of the Estée a generational shift in perspective on beauty. Lauder Cos. Inc. “This girl gets her curly hair — it’s beautiful, we just thick- In Europe, while many designers still cling to the notion ened it up,” says hairstylist Orlando Pita, waving a hairbrush of a singular — sometimes extreme — look, others have toward the model sitting in a chair behind him backstage at the adapted the concept of individuality alongside their American Michael Kors fall runway show. Pita crafted a variety of looks counterparts. The shows in total also tend to be more of a for the show, keeping in mind the original hair textures of each The new take on beauty has spectacle. In Paris, the makeup look at Céline, Giambattista model. “There are little differences, but everybody’s different. shifted to highlight the unique Valli and Sonia Rykiel was bare-faced; at Stella McCartney, It’s embracing each girl and enhancing what they have.” features of each model. Shown several models kept their own hairstyles. At Fendi and Gucci “They are not soldiers. They are women that [Joseph Altu- here, clockwise from top: backstage at Altuzarra, Zac in Milan, natural hair texture was kept in place, and at Gucci, zarra] likes, and he likes them all because they are individuals Posen, Michael Kors and the makeup was noticeably pared-down. Each model at and he wants to treat [them] that [way] now,” agrees makeup Altuzarra. Fendi received a different eyeliner treatment. At Burberry in artist Tom Pecheux while backstage at the Altuzarra show this past season, for which he led the makeup direction. When François Nars, founder and creative director of Nars Cosmetics, returned to backstage makeup artistry after a 10-year hiatus for the Marc Jacobs spring 2009 show, he created 65 unique looks for the 65 models walking the show. “Marc said that he wanted all of the girls to have a different look, to express each of their individuality,” says Nars. “We wanted them to look like they were getting ready to go out, so naturally there would be a variety of looks. For me, I’ve always pushed for women to be more themselves and to find a look that really fits them. So it goes back to what we were doing at the show, which was to really show different characters and to tell women that you don’t have to follow just one look.” Fashion being fashion and Marc being Marc, he has since gone in a different direction. This past season, Nars created six makeup looks for the show, inspired by Eighties punk. Paired with Guido Palau’s Twenties-style waves shellacked with hairspray, it was a Goth-meets-flapper moment that har- kened back to the notion of runway beauty as a singular look. But several major designers, most notably Alexander Wang and Michael Kors this season in New York, are holding fast to the concept of individuality. Backstage at the shows has long been a place where beauty trends are born and product development is set in motion. If makeup and styling agents are affecting a new natural min- imalism, the beauty industry would seemingly question the impact this will have on the marketplace. If products aren’t in fashion, what happens to consumer demand? It seems counterintuitive that makeup sales are soaring in the midst of a “no makeup-makeup” moment on the runways, but makeup, always a standout category for sales, is not losing momentum in the marketplace. Rather, just the opposite — it’s accelerating. “The consumer perception has shifted in a way to think about using makeup [both] to transform and to celebrate the individual,” says Deborah Yeh, senior vice president of marketing and brand at Sephora. “That’s totally driven by influencers, makeup videos, celebrities and the like.” According to data from The NPD Group, makeup category ►

54 MARCH 2016, No. 5 WWD.COM

“Every single show I’ve done [this season], the big trend is individuality. Sometimes a girl will walk into a show and we’ll be like, ‘She looks great — leave her alone.’ ”

Anthony Turner, Hairstylist

out,” says Mazdack Rassi, cofounder of Milk Studios and Milk Makeup, the studio’s new beauty line. “It was a lot easier for them to establish who they were because they had no legacy issues. They came right out the gate and they spoke the way they wanted.” Milk Makeup, which launched in February, was born after Rassi and his fashion editor wife Zanna observed a common laissez-faire attitude toward makeup possessed by the young adult women working and attending events at Milk Studios over the past five years. “She doesn’t use makeup to change who she is, but just kind of enhance it. She doesn’t hide behind it,” says Rassi. “She’s proud that she doesn’t wear a lot.” The Milk products are ambiguous by design, meant for multipurpose use. “That was our point of view, we weren’t actually creating a cosmetic line — we were creating fun. It was another form of accessory.” Runway models are a reflection of a moment in time — the aesthetic and attitude of the prevailing era. The Eighties saw supermodels and excess, and after, the Nineties brought a return to minimalism with the controversial rise of “hero- in-chic.” Mass pop culture dominated the style influence of the early Aughts. Beauty expressed on the sales grew 13 percent in the $16 billion prestige market last For the digital generation, the ability to craft and curate runway is indicative of a year. Growth was accelerated by the “all other face” segment, one’s own unique identity via online platforms has been a generational shift in perceiving including contouring, strobing and highlighting products. force in the rise of individuality. beauty. Shown here, backstage at Rag and Bone (top) and CC creams and makeup primers, popular with Millennials “This final picture of a look to achieve is a little bit out- Ralph Lauren (bottom). for their multipurpose effects, grew 58 percent in the last dated,” says Emily Weiss, founder and ceo of Glossier and two years and contributed $490 million to the industry in Into the Gloss. “Women have authorship — real owner- the past year alone. ship over their character and their persona from a digital “Backstage is still a laboratory,” says Demsey. “Young perspective.” women today are 15 or 20 different people all at the same What is happening in backstage beauty is a reflection of time. It’s the same person and that person will change up what is being seen online and on the street. There are more her look all the time, and experiment with makeup, hair outlets when it comes to self-expression, allowing for count- [and] fashion…whereas 20 years ago, there was a standard less sources of inspiration for consumers. “All of the fashion and everyone tried to replicate [it] every day of their life.” shows have no makeup,” says Pecheux, exaggerating to make Makeup by Yeh adds that Sephora customers are buying more makeup, his point. “It’s no longer a full look.” GRACE AHN using DIOR particularly products driven by social-media-fueled trends. But Pecheux acknowledges there’s still a place for the Hair by HELEN REAVEY Contouring and strobing products were key sales-drivers last heavily made-up side of the equation, especially outside the using MR. SMITH year, and the company is banking on color correcting as the runway. Exhibit A: the Kardashians. at Bryan Bantry Inc. next big makeup wave in 2016. Other players point out that greater emphasis on individu- Makeup assistant: “People are wearing and using a lot more makeup now. And ality opens the door for greater emphasis on diversity. SENA MURAHASHI they’re more individual, and they’re more diverse, and [those “The world has gotten smaller with our devices, and the Hair assistant: are] kind of related to each other,” says Demsey. “Whether industry is heeding a call to find women and men that reflect the AKI YAMAGUCHI Photo assistant: it’s in fashion or not in fashion, it’s the way of the world…the society. We want the consumer to see themselves in the people PAOLO TESTA one standard of beauty is gone.” that we represent,” says Ivan Bart, president of IMG Models. Models: Before manifesting in runway beauty, individuality took He notes that the most successful models today have an CHEN LIN for IMG root in fashion. The new generation of American designers authentic voice on social media — “whether it’s Twitter or LAMEKA FOX for IMG — Alexander Wang, Proenza Schouler and Altuzarra — that Instagram or Snapchat, it’s key that you are able to commu- ROS GEORGIOU cropped up over the past 10 years, paved the way, acting as nicate well.” at The Society Management champions of their own distinct visions and crafting their “If you look at the Gigi Hadids or the Kendall Jenners of the AMELIA RAMI own unique directions while ignoring the inclinations of the world, they’re the new network,” says Demsey. “The biggest for Trump Models fashion industry at large. trend in the world right now are InstaGirls. The impact of TINA VESHAGURI “We call them Renaissance kids — they spoke digitally first, [social media] and all these things [is] a never-ending stream for Trump Models they had their own community built [and] they didn’t have of imagery, content and people showing off the diversity of YULIA MUSIEICHUK to rely on retailers and wholesale just to get their message different looks.” ■ for Ford Models

58 MARCH 2016, No. 5 WWD.COM Eddie Lampert

The industry is questioning whether Lampert’s strategy will save Sears or destroy it. Saint or Sinner?

By David Moin with contributions from Evan Clark, Sharon Edelson and Vicki M. Young Illustration by Chris Buzelli thinly staffed.” $14.75 at Sears, Roebuck in 2003 to $193 While the stores have been starving for Sears Holdings in 2007, and stirring for upgrades, Sears Holdings last year those Buffett comparisons. Lampert’s sold 235 Sears and Kmarts locations to fortune — and those of Sears Holdings Seritage Growth Properties, a real estate investors — rose. Sears Holdings’ market investment trust formed by Lampert capitalization was around $20 billion back himself, along with 50 percent interests then, and Lampert’s own net worth was in ventures with Simon Property Group, close to $4 billion. General Growth Properties and The Mace- Fast-forward to the present: The stock He’s been called rich Co., which together hold an additional hovers between $14 and $15; market cap 31 Sears Holdings properties. Through the is down to $1.6 billion, and Lampert is deals, Sears Holdings raised $2.7 billion for listed with a $2.3 billion net worth by greater financial flexibility, and the com- Forbes. The euphoria has been supplanted pany leases back the majority of the stores. by concern for the future of Sears and a visionary, a The developers in the ventures have the Kmart. Some see Sears Holdings as a ability to convert 50 percent of the space zombie company undergoing a slow-mo- they obtained to other retail formats or tion liquidation, with a hidden agenda to uses, leading to reduced square footage for use the retail cash flow to boost financial Sears and Kmart. Sears Holdings still owns investments rather than elevate the stores financial genius 419 of the 941 Kmarts and 731 Sears stores and the merchandise. operating in the U.S. as of Jan. 30, 2016. Not everybody buys that theory. “Eddie There are plans to close some, though the genuinely wanted to build the company Chicago, 1900s: Sears employees in the cutting department of the clothing manufacturing plant work to fulfill 3,000 to 5,000 orders per day. locations haven’t been specified. Officials back,” says a former colleague at Sears say it’s “a very small percentage” of the Holdings. “Remember, he came into the and the next overall fleet. business in 2003. He wouldn’t have stayed Mark Dufton, chief executive officer with it for these 13 years if he didn’t believe of DJM Real Estate consulting, which has in it. If it was one of these Wall Street “The operating leverage in our worked with Sears Holdings, says Lampert financial plays, Eddie would have sold it and his team are aggressively examining all off years ago. Unfortunately, he had apparel business...can change Warren Buffett. “every location for opportunities to create to make some hard decisions to keep the value and redevelop.” Among the real business going.” estate maneuvers: seven locations were The retail iconoclast has had support- our profitability meaningfully if we turned over to Primark, the fast-fashion ers, notably Bruce Berkowitz, a mutual chain from Ireland, which entered the U.S. fund giant and founder and chief invest- manage the business differently.” last year with two locations. At six Primark ment officer of Fairholme Capital Man- locations, Sears will have streamlined agement, which owns a quarter of Sears’ — Edward S. Lampert stores of around 100,000 square feet. stock. Yet the stock declines have begun Seritage is planning a redevelopment of to irk Berkowitz, who in December repo- a Sears store and adjacent land in north sitioned himself as a Sears activist. Ber- the ability to spend as much time studying Hoffman Estates outside Chicago, posing Miami’s Aventura Mall, which is being liti- kowitz’s own investors have been keen to Sears as we do,” Berkowitz notes, adding, some coordination challenges. gated with Aventura’s owners over issues understand Fairholme’s bet on the retailer. “Most do not understand the vast asset “We’re just going to service them. We’ll related to the mall getting approvals for its During a conference call, Berkowitz base at Sears, and I recognize that most do ship them goods, but not spend money He’s also been called a calculating shoppers in the age of fast fashion, Ama- proposed 240,000-square-foot expansion. told his backers, with no small amount not understand the complexity of optimiz- building the business,” says one vendor. wizard of real estate who shuffles assets zon, Wal-Mart, Home Depot and Lowe’s. In the fourth quarter of 2015, Sears of confidence, that: “Our thesis on Sears ing all of the assets. More information and “The problem has been the turnover. for financial gain while performing a slow When he formed Sears Holdings, it was Holdings dove deeper into the red with cannot be disproven: Sears has a vast real a little more hand-holding may be helpful There’s been so much, they can’t get a disappearing act with a stalwart of Amer- a $55 billion corporation. Now it’s down a $580 million loss, compared with a loss estate empire complemented by unique — it sure won’t hurt.” footing on what to do. There’s no jockey, ican retailing, Sears. to $25.1 billion. of $159 million a year ago. Included was a businesses. Sears also has constraints, That leaves Lampert and Sears with the no Marvin Ellison. No Michelle Gass,” The one thing Edward S. Lampert, He’s kept the business running (if not onetime noncash accounting charge for and we understand those constraints.… balance of 2016 to stem the flow of red ink. the source says, referring to J.C. Penney’s the chairman and chief executive officer steadily shrinking) through a stream of the impairment of the Sears trade name. We do understand today that the retail ceo, and Kohl’s chief merchandise and of Sears Holdings Corp., has never been funding maneuvers, spin-offs, advancing On an adjusted basis, the loss was $181 world is morphing, and we understand customer officer, respectively. “No one mistaken for is a retail merchant. He’s said the Shop Your Way digital platform, and million, from a loss of $36 million. the challenge of optimizing a huge set of is pushing. If Sears went away tomorrow, to micromanage at both Sears Holding big real estate transactions. But his net Revenues fell 9.9 percent to $7.3 billion company assets.” it’s not a problem for me. When you don’t Corp. and the hedge fund he manages, ESL worth has shrunk with the value of Sears’ from $8.1 billion. Comparable-store sales Still, Berkowitz stresses that Sears must engage with a supplier, you have nothing. Investments, and get deep into the details. stock and his fortune is now estimated to dropped 7.1 percent for the quarter, with start making money. “It is taking longer They’re not engaged. For sure, I am build- He’s described as assertive, inspirational be about half of what it was shortly after Kmart down 7.2 percent and Sears falling than I thought to maximize and monetize ing businesses with other companies.” and motivating, particularly on a one-on- the formation of Sears Holdings. 6.9 percent. the enormous asset base under the Sears The partnership with Lands’ End, sold one basis, when he’s strictly business and Today, Sears remains more viable in Over the past five years, Sears Holdings umbrella than we would have expected, at more than 200 Sears doors, “needs avoids conversing on a personal level. hard goods and appliances, with around has tallied net losses of $8.2 billion. but it is happening.” S to be more profitable,” Lands’ End ceo But he maintains a rigid point of view and a 20 percent share with brands like Crafts- “Sears can’t go on losing that much Asked if the money Sears has spent Federica Marchionni said last year. She if one of his strategies flops, it wasn’t his man, Kenmore and DieHard, according money, but Eddie deserves credit for trying to stay competitive has been worth- hinted at changes to the wholesale distri- problem — the fault was in the execution. to analysts. Strength in consumer elec- being among the first to see value in retail while, Berkowitz says, “If Sears is able to bution, but noted there are commitments This year, Lampert’s reputation and the tronics, including televisions — where real estate assets when no one else was return to profitability this year, which with Sears that must be honored. Lands’ fate of his Sears Holdings Corp. — formed Sears bet big — has been eroded by price looking,” says one retail chairman who is the company’s most important focus End was owned by Sears from 2002 until in 2005 from the merger of Sears and compression and by the market for tablets competes against Sears. “All along from during 2016, then yes, it has been worth- 2014, when it was spun off into a public Kmart — are on the line. He’ll be deemed and mobile phones peaking. Of Sears’ the start, he knew it was going to be a slow while. A considerable portion of the company. either the savior of Sears or the wrecking $14.9 billion in total volume, $7.9 billion liquidation, but of course he couldn’t say past cash burn is voluntary based on the ources tell WWD that apparel suppliers Lampert declined to be interviewed for ball. Investors have become adamant that was in hardlines last year, and $2.9 billion it. Then again, he made money for his transformation of the retail businesses. are keeping an arm’s length, providing this story, though in his last letter to share- the company must return to the black in apparel and soft home. At the $10 billion investors,” largely through ESL Invest- The remaining portion is based upon the merchandise to fill the shelves, but not holders, he writes: “While the weather in 2016. Kmart chain, more than $2.9 billion was ments, which includes Sears Holdings, pension and rent expenses, which will go thinking long-term to move their Sears conditions magnified our apparel prob- Lampert took control of the two chains in hardlines; $3.43 billion in apparel and AutoNation, Lands’ End, Gap, Seritage and down with time.” businesses forward or assume much risk. lems in the fourth quarter, our apparel more than a decade ago when they were soft home. Sears Canada in its portfolio. When he addressed the Sears board Sears Holdings’ apparel business consists business nevertheless needs significant already well past their prime. A turn- “For new Americans with moderate Lampert acquired a controlling stake in January, Berkowitz focused on the of an office with buyers and merchandis- improvement. The operating leverage in around would be a challenge for even to low income, there’s decent value. in Kmart in 2002 for $1 billion, taking it continued cash burn and deteriorating ers for Sears and Kmart in San Francisco our apparel business is significant — it the most seasoned retail guru. Sears and The emphasis is on family shopping,” out of bankruptcy and merged Kmart confidence among all of Sears’ constitu- in 2010, which helps the company attract can change our profitability meaningfully Kmart have hung on for decades, despite observes Craig Johnson, president of with Sears in 2005 to form Sears Holding ents. “I’m talking about Sears’ customers, talent and stay closer to trends. Design if we manage the business differently. As sustained losses, shriveling confidence Customer Growth Partners. “Otherwise, Corp. Lampert’s entrance into retailing vendors, suppliers, employees, creditors offices are located in Lower Manhattan a result, improving our apparel business among vendors, executive turnover and traffic is a fraction of what it used to be. was greeted with rousing shareholder and investors,” he said at the time. and there’s a support team with plan- will be a priority for the leadership team

increasingly questionable relevance to The stores are hugely unproductive and approval, catapulting the stock price from Images Archives/Getty Interim by All photographs “The bottom line is not everyone has ners operating at Sears headquarters in in 2016.” ►

62 MARCH 2016, No. 5 WWD.COM WWD.COM MARCH 2016, No. 5 63 Last year “was more positive for us in Lampert Holdings is becoming an “integrated longer deals directly with Sears Holdings. out of options.” Remaining real estate sites other areas,” Lampert contends. “For At a Glance retail” company. “That means that our “When Eddie articulates, he makes you may be harder to monetize, he adds. example, we continue to be the leader in stores and our associates who work in our feel like you can really make something Mary Epner of Mary Epner Retail Anal- Born home appliances and complete solutions July 19, 1962, stores matter more than ever. happen. He’s very dynamic. He thinks ysis did have an option in mind for Sears for homeowners. In 2015, we successfully in Roslyn, N.Y. Last year, an array of services was intro- outside the box. Unfortunately, once you Holdings: encourage e-tailers to lease launched our Kenmore PRO Appliance Education duced linking the shopping channels: a got into it, it was hard to get traction. Over permanent space or create pop-ups inside Suite, a new premium line of appliances B.A., summa cum “meet with an expert” service enabling time, it just waned,” says a source who Sears and Kmart to create some interest, that gives homes an elevated look without laude in econom- online shoppers purchasing home appli- worked at Sears Holdings and requested though that would be a tough sell given the need for costly remodels.” ics, Yale University, ances, mattresses or lawn and garden anonymity. For someone running a huge the traffic and productivity concerns. She Sears Holdings executives suggest that 1984 departments to meet with Sears associates public company, the 53-year-old Lampert believes the two chains can’t stay as they stores are not being ignored, despite Family life in the stores; an “in-vehicle” service so has managed to maintain a relatively low are. “Sears may have more validity than industry impressions to the contrary. They Marries Kinga shoppers can pick up, return or exchange profile. “He definitely keeps to himself.” Kmart because Kmart product could be Lampert in 2001. tell WWD that they’re trying to bring “the online purchases at Sears stores, in five One former ceo and competitor who found anywhere. It’s hard for Sears and They have three fun” back to Kmart and last year restored children. minutes or less, without leaving their knows Lampert says, “He’s never been a Kmart to compete with Wal-Mart, Tar- the retailer’s “Blue Light Special,” con- vehicles, and an in-store shipping service, public kind of guy. He’s very introverted. get and Amazon. There are not enough 1985 to 1988 sidered the original flash sale introduced Works with providing free shipping on orders placed When he lived in Greenwich [in Connecti- distinguishing characteristics,” although in 1965. The famous “Attention Kmart Robert Rubin in the through mobile apps. cut], I never saw him. He may be very Kmart’s layaway program is appealing for shoppers” tag line is back, too, heralding Goldman Sachs But only so much can be done, and as charitable, but you don’t see him out and customers, the retail consultant says. each special. Blue Light Specials are also risk arbitrage Lampert notes in his letter, cost burdens about.” Fitch Ratings has a “CC” rating on Sears online for the first time. Kmart started department. like higher minimum wages can be “the The low profile could partly stem from Holdings, meaning “very high levels of “freebie Saturdays,” giving out such things 1988 straw that breaks the camel’s back.” being kidnapped in 2003 by four men credit risk” and “a default of some kind Chicago, 1900s: The freight packing room of Sears, Roebuck & Co. as cotton candy and mini footballs to kids, Becomes founder, Companies viewed through “a more from the Greenwich parking lot of his ESL appears probable.” A default can be chairman and and there’s a new dress code for associates traditional lens, like Sears Holdings, are office. After being held in a cheap hotel caused by a distressed debt exchange, a chief executive who wear Blue Light blue T-shirts with officer of ESL In- met with skepticism even though we have for two days, Lampert, using his powers bankruptcy filing or a missed payment, funny sayings on the back. Kmart also is vestments started an enormous asset base and a proven of persuasion, convinced the kidnappers “Most do not understand the vast according to the ratings agency. “working on the functionality” of its Web with $28 million in history of monetizing these assets and to free him for $5 million. While he was Monica Aggarwal, managing director site, and to lower inventory costs recently seed money from raising additional capital to fund our presumed to be getting the money, the at Fitch covering Sears, says, “Depart- began sourcing “extreme-value” deals Richard Rainwater. obligations and transformation,” Lampert kidnappers used Lampert’s credit card to asset base at Sears, and...most do ment stores as a whole have had strong The hedge fund including inventory from liquidated firms writes. “The good news is that we have a order pizza, a transaction that the fraud recognition that there’s been mall traffic grows to $9 billion. and “other opportunistic situations” that vast portfolio of assets and businesses to department of the credit card company declines, with the channel leakage having 2003 could fuel the Blue Light Specials. draw from.” He also cites the possibility used to tip off the FBI, which proceeded not understand the complexity of shoppers headed to Wal-Mart, Amazon Brings Kmart Sears, they say, is cooking up a yet Holding Corp. out of one day opening smaller stores, though to arrest the kidnappers. and other online sites and retail outlets.” another new strategy for apparel, which of bankruptcy that seems remote now with the core base “His intelligence is almost a negative,” optimizing all of the assets.” Sears and Kmart, she adds, “have been has been the Achilles’ heel for years. by acquiring a reducing square footage. says the former ceo. “It’s like he’s smarter losing market share for years, which is not The company has said that in 2016 and controlling stake Credit is another concern. As one than everyone else in the room. When — Bruce Berkowitz a surprise when they are spending 1 per- future periods it intends “to improve for $1 billion. Seventh Avenue executive says: “I’m told companies fail it’s because of leadership. cent on capex [capital expenditure] and the performance of our apparel business Escapes from Sears is borrowed to the hilt. They can’t They succeed when leadership conveys their competitors are spending 3 percent.” through changes to our sourcing, product kidnappers after really borrow much more and will con- to management how important they are. In other deals, Lands’ End was spun off “Sears had a campaign that said ‘Sears Is Fitch projected the Sears Holdings cash being held for two assortment, space allocation, pricing and tinue to liquidate the assets to raise cash. Lampert impresses me as a very smart into a public company to generate a $500 Where America Shops.’ I put out a report burn rate at between $1.6 billion and $1.8 days. inventory management practices.” Most of the plum assets have been sold guy, but that doesn’t necessarily mean he million cash dividend for Sears; a rights that said, ‘Sears Is Where America Used billion for 2016, and earnings before inter- 2004 “We are working to improve the soft- [through the Seritage REIT] so I’m not sure can be successful. You’ve got to be very offering for senior unsecured notes and to Shop.’ Sears was already starting to est, taxes, depreciation and amortization Earnings top $1 lines business,” a company spokesman billion; believed to what they have left.” close to the product, the people and the warrants raised $625 million; a rights offer- struggle back then. This was before the in the negative $800 million to $1 billion says. “We still have strength on the hard- be the first Wall “Basically, they have made it clear they competition.” ing for Sears Canada raised $380 million, growth of Kohl’s. The malls had started range. The plan to obtain a term loan of lines side.” It’s premature, he adds, to Streeter to hit the will need to raise money this year,” says “He is better as a real estate asset owner and a short-term $400 million loan was changing and we saw the [early] growth up to $750 million due in 2020 will help divulge details of the strategy. mark in a single the source. “Eddie is a financial engineer than as a retailer,” adds Johnson, of Cus- obtained from Lampert’s ESL. And that’s of Wal-Mart and Target. offset the April 2016 reduction of the credit year. so he may pull something out of the hat.” tomer Growth Partners. just between 2014 and 2015. Lampert also “I went into a Sears store the other day facility — the revolver will shrink to $2 2005 There’s speculation Sears could cut Founded as a mail-order catalogue spun off Sears Hometown, Sears Outlet and there’s no merchandise creativity. Lin- billion from nearly $3.73 billion — during Acquires Sears real estate deals with such companies as company in 1886, Sears, Roebuck & Co. Stores, Orchard Supply Hardware and gerie is displayed on pegboards. There’s the third-quarter peak borrowing season. Roebuck & Co., Amazon or Alibaba, which are evolving didn’t open its first store until 1925. Sears Sears Canada. And in 2006, he transferred nothing exciting about the stores. That’s Aggarwal is not optimistic about Sears merges it with Kmart to create from pure online plays to omnichan- eventually became a broadlines retailer ownership of the intellectual property for why we see the steady decline in sales per Holdings: “The fact that we are projecting Sears Holdings nel businesses requiring warehouses and and the iconic American department Sears’ key brands — Kenmore, Craftsman square foot.” Edelman estimates that the midsingle-digit negative comps and an and becomes its brick-and-mortar stores. Any deal could store. It was the largest retailer in the U.S. and DieHard — to a bankrupt-protected transaction volume at the average Target EBITDA performance the same [in 2016] chairman. help pull Sears Holdings out of its hole. until 1989, when Wal-Mart took the lead. entity called KCD in a $1.8 billion securiti- store is three times that of a Kmart, and as in 2015 shows that we don’t think the 2006 “Somebody at Sears once told me that The golden era for Sears and Kmart zation bond. KCD now charges Sears a roy- almost two times that of a Sears. turnaround is going to happen.” L Makes Time 100 Eddie’s biggest problem is that he has been extended from the Fifties to the early “I think the original reason [Lampert] Dealing with labor and rent costs, and alty fee for the licensing of the brands and list as one of the a billionaire too long, that he’s lost touch Eighties during America’s suburban sprawl is listed as a subsidiary of Sears Holdings. bought Sears and Kmart was because he managing for liquidity, makes it hard to most influential with the consumer,” says the Seventh and when malls and strip centers prolifer- Jeff Edelman, director of retail and felt the real estate value was greater than invest in the store base, she explains. individuals in the world who leads a Avenue source. “He makes decisions, but ated. Sears was typically the anchor of consumer products advisory services for the market value of the whole company,” On the other hand, Aggarwal points out, new group of activ- doesn’t really understand the consumer. choice for mall developers and Kmart was RSM, was a retail and apparel analyst for Edelman says. Now he believes the hedge “When you still get $25 billion in sales, ist hedge funds. He’s shy, reclusive, awkward, but very the anchor of choice at strip centers. more than 40 years. He recalls that in the fund manager doesn’t have much left in it’s hard to say the customer has entirely 2012 bright, more of a real estate, value guy Lampert acquired Sears, Roebuck in Seventies, while he worked at Dean Witter, his financial bag of tricks and is “running gone away.” ■ Makes the Forbes than a retailer. You’ve got to know some- 2005 in an $11 billion deal. He merged ampert spends much of his time on list — at number thing about the merchandise. You’ve got Kmart and Sears into Sears Holdings Corp. 367 — of the Shop Your Way, which launched in 2009 to be outgoing like Terry J. Lundgren or Initially, he was seen as Sears’ savior, 1895 opens at Chicago 1976 1993 2001 2005 2015 world’s wealthiest The Sears Saga essentially as a store loyalty program. Burt Tansky,” Macy’s ceo and the former given his rescue of Kmart, though from A 532-page cata- mail-order plant. Sears introduces “The Softer Side of Sears flagship Merger is Transfer of individuals with a 1886 logue for apparel, its “Where America Sears” campaign on Chicago’s completed. 235 stores to It’s evolved to what he describes as “an net worth of $3.1 ceo of Neiman Marcus Group, respectively. the get-go at Sears, there was skepticism Richard Sears 1927 wagons, fishing Shops” campaign. launches. State Street opens, Edward S. Lampert Seritage Growth engaging desktop and innovative mobile billion. “You’ve got to be able to step down onto that Lampert’s vision to combine two starts the R.W. Craftsman tackle, stoves, adding to the is named chairman. Properties, a real experience” and continues to grow its the sales floor and sell something.” antiquated companies could create one Sears Watch Co. in gets launched. 1985 U.S. catalogue 2013 furniture, china, 850-plus unit estate investment Minneapolis. Sears rolls 2013 assortment, membership and benefits. Lampert adds Sources say Lampert doesn’t like to get bigger, healthier company, even given the operations are saddles, firearms, 1931 out Discover department Lampert named trust, raising He’s been on the forefront of technology, the title of ceo at on a plane and prefers people flying in opportunities for consolidations, greater 1887 closed. watches and jewel- Sears’ retail credit card. store chain. Sears Holdings ceo. $3.06 billion. Sears Holdings Sears moves to ahead of the industry on buy online, pick from the San Francisco and Chicago offices buying clout and synergies. The financial ry is produced. stores account 1999 2004 in addition to Chicago. Alvah 1986 2014 SHC enters joint up in stores and delivery services. to his offices on the East Coast. strategist side of Lampert continues to 1901 for 53.4 percent Sears Direct is Kmart and Sears chairman. C. Roebuck joins Sears turns 100. Lands’ End ventures with His emphasis on Shop Your Way amid “He would drive everybody nuts. He take heat from those claiming he was Sears goes public. of the total $180 launched, com- Roebuck merge the business as a spin-off generates Simon Property 2015 million in sales. 1990 bining specialty into Sears Sears Holdings’ shrinking store footprint would create this daily or twice-a-week primarily interested in DieHard, Crafts- watchmaker. 1913 a $500 million Group, General Lampert descends Ground breaks catalogues, tele- Holdings Corp., has fueled perceptions the retailer is turn- conference call and totally not be aware man and Kenmore, and monetizing Sears Kenmore is 1945 cash dividend. Growth Properties the Forbes list of 1893 for new marketing, direct the third-largest Sales top $1 billion. and Macerich ing all digital. But Lampert states in his the world’s wealth- of the time zone. People on the West Coast Holdings’ vast retail real estate, the best Company changes introduced. headquarters mail and Internet Sears completes a U.S. retailer with involving 31 stores. shareholder letter: “We are not becoming iest, dropping to would have to wake up at an ungodly time of which is believed to have been sold to its name to Sears 1925 1967 at Hoffman operations. Sears. $55 billion in $625 million senior solely a digital company.” Rather, Sears number 628. — 4 a.m.,” says an industry source who no Seritage. Roebuck & Co. First Sears store Diehard launches. Estates, Ill. com debuts. annual revenues. rights offering.

64 MARCH 2016, No. 5 WWD.COM WWD.COM MARCH 2016, No. 5 65 Think Tank

Don’t Fear EMV: DIGITAL FORUM LONDON CREATED BY WWD, BUILT FOR YOU Use It as a Catalyst APRIL 20, 2016 • LONDON By Bill Zielke

Customers all over America have been confused by the and they’re individual, autonomous agents who don’t have to worry about process and compliance recent switch to cards with an embedded microchip. Lack the way retailers or card networks do. They’re also highly creative, they share infor- of government support in education around the move to mation and techniques and they’re part of a sophisticated underground ecosystem. They know EMV (which is Europay, MasterCard and Visa — the name there’s money to be made out of CNP transactions. Online, mobile and phone orders are a highly of the original developers), tempting and potentially very lucrative target. A fraudster’s success is an online merchant’s learning to “dip” instead of loss. The retailer takes the hit for a fraudulent transaction and all the associated costs — and with “swipe” and a wait of up to 20 CNP fraud attacks on the rise, that means retailers without fraud prevention capable of meeting the seconds for authentication challenges of modern e-commerce are facing huge potential loss. haven’t made things easy. And retailers — and their profits — could lose out from two directions. ¶ Worse, although the official Retailers lose when fraudsters win. But they also adoption-rate deadline was in lose when, in response to the fraud threat, they insist on stringent fraud policies and outdated, October 2015, many retailers risk-averse methods that reject and annoy good customers, thereby turning away good business. haven’t yet brought on the The solution to both problems is the same: full automation. Amee Chande Moritz Hahn Maria Hatzistefanis Matthew Keylock YOOX NET-A-PORTER system, so consumers have Traditional fraud prevention has relied on ALIBABA GROUP ZALANDO SE THE RODIAL GROUP rules and manual reviews. Until recently there GROUP an inconsistent experience during checkout. was no viable alternative, but cutting-edge tech- This was initially partly due to retailer resistance They know there’s money nology means that’s no longer the case. Full to changing around during the busiest and most automation, based on machine learning that important shopping season of the year, but things to be made out of CNP learns and adapts with every single transaction, are being held up even now by the fact that the is now possible. card networks are behind schedule certifying transactions. Online, That’s just as well because it’s the only way to the new machines. They haven’t got enough beat today’s agile fraudsters. Make no mistake: people to send out to do it. Merchants annoyed mobile and phone orders they’re adept at leveraging new technology to their by unexpected delays and concerned by a rise in own ends. By the third quarter of 2015, suspected chargebacks aren’t impressed. are a highly tempting botnet attacks had risen to an astonishing 82 per- You might think that with this delay, the and potentially very cent of all fraud attempts in the U.S. With the kind expected rise in card-not-present fraud would be of speed and sophistication available to fraudsters postponed as well. It makes sense that EMV adop- today, rules that need manual adjustment simply lucrative target. Michael Kliger Arjen Schouten Sienne Veit Juliet Warkentin tion would cause CNP fraud to rise, as occurred in can’t keep up — especially when the sheer number MYTHERESA.COM RITUALS COSMETICS JOHN LEWIS AMAZON FASHION EUROPE numerous other countries (in France, famously, of fraud attempts is rising anyway. it rose more than 360 percent), since when But fraud prevention can fall in line with the rest card-present fraud becomes more difficult, fraud- of your business and become consumer-centric. sters sensibly move to an easier channel. But with Learning” indicated North American fraud losses Fully automated, real-time fraud prevention won’t EMV adoption half-hearted so far, you may expect would increase 55 percent by 2018. And it has interrupt the purchase process — it won’t even be CREATED BY WWD, BUILT FOR YOU the criminals to put off their own shift as well. already begun. Forter indicated that fraud attacks noticed by your customers, who will instead enjoy It hasn’t worked out like that. increased by a substantial 163 percent just during a swift, seamless shopping experience. Fraudsters, it appears, are more organized and the first three quarters of 2015. You’ll have happier customers, and more sales. ■ summits.wwd.com better prepared than the card networks. They’ve Moreover, fraudsters don’t give up and they been aware of the coming change for some time don’t want to risk their illicit income being Bill Zielke is chief marketing officer of fraud preven- ATTEND: KIM MANCUSO, [email protected], 646.356.4722 SPONSOR: ALEXIS COYLE, [email protected], 646.356.4719 and they positioned themselves to get ahead stopped by a new kind of card — so the move tion firm Forter, which offers solutions for online of it. A recent Forrester Research report titled online, even ahead of the EMV curve, is a logical merchants. Prior to Forter, Zielke was a senior EVENT SPONSORS

“Stop Billions in Fraud Losses With Machine one. Fraud is crucial to fraudsters’ bottom lines, director and head of eBay Motors. Manzati Andrea by Illustration FAIRCHILD SUMMITS ANNUAL 66 MARCH 2016, No. 5 WWD.COM PARTNERS YOU CERTAINLY DON’T LOOK YOUR AGE!

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