Long and Lean Leave It to Nicolas Ghesquière to Transform the Classic Essentials of French Style Into Something Fresh
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s s s EYE: RETAIL: WWDTREND: FASHION: Who’s showing where so far Partying Gregory Scott Pre-fall during New York Fashion Week, page 8. on after out as Bebe collections the Golden Stores’ chief get graphic, Globes, executive page 8. page 4. officer, page 2. Women’s Wear Daily • The Retailers’ Daily Newspaper • January 13, 2009 • $3.00 WReady-to-Wear/TextileswDTUESDAY Long and Lean Leave it to Nicolas Ghesquière to transform the classic essentials of French style into something fresh. For his pre-fall collection for Balenciaga, Ghesquière is doing modern riffs on such pieces as the pencil skirt and gray flannel pants, as the linear dress here shows. The designer also spikes his chic looks with such details as Chewbacca mittens, puffy quilted bags and Space Age heels. For more on the new season, see pages 6 and 7. Shopping Is So Passé: Wal-Mart CEO Foresees New Consumer Mind-set By Sharon Edelson NEW YORK — The economy will turn around some day — but don’t expect conspicuous consumption to make a comeback. So believes H. Lee Scott, chief executive officer of Wal-Mart Stores Inc., noting the dismal economy has caused a permanent and fundamental change in consumer behavior. The ceo of the world’s largest retailer spoke at the opening session of the National Retail Federation’s 98th annual convention and expo here Monday morning. In what he called his last public speech as Wal-Mart’s ceo — he’ll be succeeded by Mike Duke on Feb. 1 — Scott predicted the first half of 2009 will be “extraordinarily challenging. In the second half you’ll have a rough spot against the stimulus package. It will be moderately better See Wal-Mart’s, Page11 PHOTO BY FRANCK MURA FRANCK PHOTO BY 2 WWD, TUESDAY, JANUARY 13, 2009 WWD.COM Scott Resigns Bebe Post By Arnold J. Karr to aggressively close nonperforming stores and refocus the company on cutting-edge fashion of- WWDTUESReady-to-Wear/TextilesDAY GREGORY Scott’S ROCKY FIVE-YEAR TEN- ferings that drive business,” he said. Blake Lively FASHION ure as chief executive officer of Bebe Stores Inc. Last week, the company said comparable-store 6 Nicolas Ghesquière knows how to blend traditional has ended. sales declined 20.1 percent in its second quar- French elements with unexpected details and shows The company said late Friday that Scott had ter ended Jan. 3 as net sales slid 12.7 percent to it in his pre-fall collection for Balenciaga. resigned to pursue other interests and that $176.3 million. Quarterly earnings guidance was founder and chairman Manny Mashouf would lowered 7 cents, to a range of 5 to 9 cents. GENERAL assume Scott’s responsibilities as ceo. The com- An “unfocused fashion component” had con- 1 Wal-Mart Stores ceo H. Lee Scott told the NRF pany appointed Cynthia Cohen as the board’s tributed to eight consecutive quarters of same- convention the dismal economy has caused a lead independent director. store sales declines, according to Beder, fundamental change in consumer behavior. “We appreciate the contributions with part of the problem being in- Greg has made to the progress stability in the executive ranks. 2 Gregory Scott’s rocky five-year tenure as ceo of of the company and wish him Dana Jozwick, who joined the Bebe Stores Inc. has ended, with chairman Manny well,” said Mashouf. company last spring as chief Mashouf assuming his responsibilities. Scott joined Bebe as merchant for the Bebe divi- EYE: The Golden Globes after parties were rather s 4 ceo five years ago after sion from a similar post at lackluster this year, as most of the A-list celebrities serving as president Wet Seal, only lasted five made their exit minutes after 10 p.m. of Wet Seal’s Arden B. months in the post. division. Beginning Scott has been credited 8 RTW: With New York Fashion Week just a month in 1996, he had spent with “elevating the high- away, several designers are leaning toward off-site four years with Bebe as er-margin accessories cat- locations, but have yet to commit. vice president of mer- egory from a small piece The National Retail Federation’s annual convention chandising. He’s also of the business to a major 11 worked with Laundry top- and bottom-line driv- and trade expo, called The Big Show, is moving to by Shelli Segal, Ann Gregory Scott er,” according to Beder. the nation’s capital in 2011. Taylor and Henri Bendel addressing the WWD Beder urged Mashouf to TEXTILES: Despite the Hamas rockets falling in CEO Summit in 2005. 14 in his career, which began “aggressively reduce Bebe Israel’s south and the military response in the Gaza at Macy’s West. Sport by either closing stores or Strip, business in the region marches on. In 2005, Scott, then a year converting them to Bebe or Bebe Blake Lively into his tenure, told the WWD/ accessory stores. The Bebe Sport 22 Primark, the U.K. discount clothing chain, said it will DNR CEO Summit that Bebe had the concept is outdated and unfocused, at investigate claims that working practices at one of potential to double into a $1 billion business. best, and not worthy of management’s limited its suppliers are illegal and unethical. In the fiscal year ended last July, sales reached time right now.” Classified Advertisements.................................................................................................23 $687.6 million, up 2.5 percent from the prior year The analyst also argued for granting autono- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS and down 7.6 percent on a comparable-store my to a chief merchant once one is appointed, [email protected], USING THE INDIVIDUAL’s name. basis. While it’s continued to position itself as stating that merchandising exclusives with WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 “sleek and sexy” in its merchandising and a fa- the likes of Tara Subkoff, who originated the FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. vorite of youthful film and music stars, some con- Imitation of Christ brand, and the Pussycat Dolls VOLUME 197, NO. 7. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in April, June and sider the brand diluted by attempts to expand had served as “stopgaps” but hadn’t energized August, three additional issues in March and September, and four additional issues in February) by Fairchild Fashion the business beyond its original sensual contem- the business. Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, porary domain, particularly with its emphasis on Like many retailers, Bebe has had difficulties President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human the Bebe Sport division. tracking the moving target of the contemporary Resources. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail In a research note titled “CEO Departure a customer. That uncertainty has been reflected Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: Key Opportunity,” in which he maintained his in the choice of older spokeswomen, such as SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P. O . Box 15008, North Hollywood, CA 91615–5008. FOR “buy” rating and $10 price target on the retail- actresses Rebecca Romijn and Eva Longoria SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box er, Eric Beder, analyst at Brean Murray, Carret Parker for Bebe and Bebe Sport, respectively. 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks & Co., wrote, “Although Greg was responsible At the same time, however, the company re- after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 for a number of key positives for the company, cently reached back toward the junior market Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests over the last few years Bebe has continued to with its 2b concept store. to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that lag in virtually every performance level. When Bebe, based in Brisbane, Calif., has 312 stores, offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or combined with a revolving door at the chief including 215 Bebe units and 64 under the Bebe information, please advise us at P. O . Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S merchant position, a number of mystifying ex- Sport name. 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