PHOTO BY JOHN AQUINO; MODEL: ANAIS/TRUMP; HAIR BY RYAN TANIGUCHI; MAKEUP BY SOUHI LEE AT DE FACTO USING MAC PRO; FASHION ASSISTANT: KIYANNA STEWART; PHOTO ASSISTANT: ASHLEY JONES; STYLED BY ANTONIA SARDONE; L.A. PORT IMAGE BY ROBYN BECK/ AFP/GETTY IMAGES WWD Sportswear RETAIL:

page 2. ▲ Christine division, Beauchamp Ann Taylor named president of Women’s Newspaper Daily •August 13,2008•$2.00 Wear Retailers’ •The Daily

WEDNESDAY

page 12. licenses swimwear, ▲ WEST: Nautical looks,page6. MAINSTREAM TREND: Ella Moss Gray Gardens

Designers are going to all lengths for resort, favoring Designers aregoingtoalllengthsforresort,favoring ankle-grazing shapesthathavetheeaseofloungewear. ▲ Here, Yigal Azrouël’s viscose caftan. Necklace Azrouël’sviscosejerseycaftan.Necklace Here, Yigal Marc byJacobs.For more,seepages 4and5. this summer. joined thefray, openingitsfirstoutletearly clearance centersandevenBaccarathas supporting thegrowthofitsLastCall fuel expansion,Neiman’shasbeensteadily recently launchedanoutletprototypeto dismalretailclimate. otherwise appeal, profitabilityandprestigeinan austere outletenvironment—isgaining selling atasteepdiscountintherelatively desperate sideofthefashionbusiness— been perceivedasalessglamorousandmore Avenue andNeimanMarcus,what’salways Selling off-price isbecomingstylish. By DavidMoin Surge ofOff-Pricers A Soaring TJX Leads Chic: Becomes Cheap by Vera andshoesby Label Wang Lavender Meanwhile, traditionaloff-price playersare The 48-unitOff5thdivisionofSaksInc. For storessuchasSaksFifth luxury See

Off-Price ,

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11 imports apparel page 2. ▲ NEWS: fall, and 2 WWD, WEDNESDAY, AUGUST 13, 2008 WWD.COM Beauchamp to Head Ann Taylor Division Ann Taylor Stores division. She has a deep un- WWDWEDNESDAY By Arnold J. Karr Sportswear derstanding of our brand and customer base and CHRISTINE BEAUCHAMP HAS AGAIN TAKEN will move seamlessly into this critical role.” FASHION the path from consultant to president. Although Ann Taylor is the company’s name- 4 Comfortably chic is the right idea for resort, in Repeating the pattern she followed at Limited sake brand, it is not its largest. That distinction pajama-inspired looks from robelike cardigans to Brands Inc. earlier in her career, Beauchamp, a belongs to Ann Taylor Loft, which, as of the May belted slouchy pants. strategic consultant to AnnTaylor Stores Corp. 3 conclusion of the company’s fi rst quarter, op- since earlier this year, has been named presi- erated 513 units with a total of 3 million square GENERAL dent of the company’s Ann Taylor division. She feet. Ann Taylor’s 347 stores occupied 1.9 mil- 1 Selling off-price is increasingly evident across the succeeds Adrienne Lazarus, who’s left the fi rm lion square feet, while the 81 outlet stores ac- retail spectrum, gaining appeal, profi tability and after 17 years, the last two at the helm of the Ann counted for about 600,000 square feet. During prestige in an otherwise dismal climate. Taylor division. the fi scal year ended last February, Ann Beauchamp is an alumnus of Taylor generated $866.6 million in MAINSTREAM: Vendors at two New York trade ▲ 6 the retail practice of the Boston sales, 36.2 percent of total group shows said they were only cutting goods for Consulting Group. She advised revenues of $2.4 billion, versus placed orders, which are down 20 to 25 percent. Leslie Wexner, chairman and $1.17 billion, or 49 percent, Shares of Fossil Inc. rose almost 11 percent after chief executive officer of at Loft. Ann Taylor was 10 Limited Brands, on growth responsible for a much the company beat Wall Street’s estimates with a strategies for Victoria’s higher average unit retail 71.3 percent jump in second-quarter profi ts. Secret and Bath & Body price — $44.57 against 10 A joint venture of national retail liquidation and asset Works, as well as the $28 — but sales per recovery fi rms will manage the court-ordered Express division, since square foot were closer liquidation sale of Whitehall Jewelry stores. divested, before joining — $465 for Ann Taylor the Columbus, Ohio- against $406 at Loft, ac- 11 The TJX Cos. Inc. showed shoppers are looking for deals but still want brands, posting strong based retailer as senior Christine cording to the company’s vice president of com- Beauchamp annual report. second-quarter earnings and sales. mercialization in 2003. The company doesn’t WEST: Molding their offerings to cautious buyers,

12▲ She later became presi- break down operating in- exhibitors at the Los Angeles market highlighted dent and general merchan- come or margins by division. accessories, basics and novel pieces. dise manager of Victoria’s Krill said Tuesday that Secret Beauty before being “our conservative approach to Classifi ed Advertisements...... 13-15 named president and ceo of the managing the business in this dif- unit in May 2006. She was succeeded fi cult consumer environment” would TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS in that role by Shashi Batra. help the company produce second-quarter [email protected], USING THE INDIVIDUAL’S NAME. In her new post, Beauchamp reports to Kay earnings higher than the range of 42 to 47 cents WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Krill, president and ceo of Ann Taylor. previously provided. Analysts on average had VOLUME 196, NO. 33. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with The company raised second-quarter guid- expected 45 cents for the quarter, according to one additional issue in January, October and December, two additional issues in March, April, May, June, August and ance Tuesday in advance of its Aug. 22 report- Yahoo Finance. November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division ing date. However, in its fi rst quarter, in- Krill continued, “Notwithstanding our bet- 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, President/CEO; John W. come dropped 17.7 percent, to $25.9 million, on ter-than-expected results for the fi rst half, we Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice a 2 percent increase in sales, to $591.7 million, are maintaining our outlook for diluted EPS President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post that included an 11.5 percent drop in same- for the year in the range of $1.80 to $1.90, as Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B store sales at the Ann Taylor division. Loft the macroeconomic environment remains very 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA same-store sales eked out a 0.7 percent gain. weak and uncertain and traffi c levels continue 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please The corporation’s current expansion plans cen- to be challenging.” write to WWD, P.O. Box 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 ter on Loft and its outlet stores. Shares of AnnTaylor fi nished Tuesday’s New within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S “This transition of leadership at our heritage York Stock Exchange session at $25.85, down 15 WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 brand is taking place at an exciting time of evo- cents, or 0.6 percent, during a day when retail or fax requests 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 lution for Ann Taylor,” Krill said. “I am delight- shares gave back some of the gains they’d picked companies that offer products and services that we believe would interest our readers. If you do not want to receive ed that Christine, a seasoned retail executive up on Monday. these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call and valued partner to me over the last several AnnTaylor Stores Corp. currently operates 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, months, will be assuming the leadership of our 941 stores. PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. Apparel, Textile Imports From China Fall DAILY “I have complete faith By Kristi Ellis QUOTE that our model will allow WASHINGTON — A flagging U.S. economy and a precipitous decline in consumer demand triggered the us to continue to grow to $30 billion largest drop of apparel and textile imports from China in June in more than seven years. Imports of and apparel to the U.S. from the entire world also fell in June, marking the to $40 billion and beyond. fourth consecutive month of declines, the Commerce Department said Tuesday. The overall U.S. ” trade defi cit also narrowed in June to $56.8 billion from $59.2 billion in May. — Carol Meyrowitz, president and chief executive The combined drop in imports from China, which fell 11.8 percent to 229 million square meters of the $18.6 billion off-price retailer TJX Cos. Page 11. equivalent in June compared with a year earlier, was the biggest decrease from the world’s largest apparel supplier since February 2001, when textile and apparel imports to the U.S. fell 20.8 percent, according to Commerce’s Offi ce of Textiles & Apparel. MOST VIEWED Overall, the combined volume of apparel and textile imports to the U.S. fell 10 percent in June • Calvin Klein’s compared with 12 months earlier, following a 6 percent decline in May, a 0.6 percent drop in April and Latest Controversy an 11.4 percent decrease in March. Imports fell by 475 million SME in June to 4.25 billion SME. • Obama Press Tour... “Among a variety of imported consumer goods, apparel was one among many down sharply this More Appointment... month,” said Nigel Gault, chief U.S. economist at Global Insight. Hogan’s Heroes... Imported TVs, VCRs and household goods were also down sharply in June, Gault said. • Magazine Circulation “I think it’s an indication that the expectations on the part of retailers for what consumers are TODAY ON Falls in Half going to spend is pretty subdued,” said Gault. “Imports are responding to what the retailers antici- • Paris Talks Politics... pate they are going to be able to sell. Clearly, consumers have plenty of room to not buy the latest McQueen on Target’s fashions or to make due with last year’s clothes a little while longer.” Radar...Topshop’s New Gault expects to see apparel and textile imports continue to slide for at least the next few months Signing... based on anecdotal evidence from retailers about the back-to-school season, which he said indicates WWD • Old is New at Interview... more “softness.” .COM United Benetton... Charles McMillion, president and chief economist of MBG Information Services, said domestic tex- Olympic Seams... tile producers have also pulled back on imports of raw materials as refl ected in the import numbers. ▼ “Demand is very weak and so it is having an impact on both our own domestic production as well A dress by Karen Walker. MOST E-MAILED as on imports and, of course, on prices in the textile industry,” said McMillion. “Textile production • July Sales Tough has been going down for some time at a time when imports were rising. Production is still going for Retailers down and now imports are starting to slacken and that is a refl ection of a weak market.” • More photos from this week’s • Las Vegas Retail Feels Several other countries had signifi cant apparel and textile import declines in June, including nautical trend Pakistan, which fell 21.7 percent to 229 million SME; Canada, down 31.6 percent to 115 million SME, Economic Squeeze and Mexico, off 17.1 percent to 231 million SME. • Back in Time: the secret • Magazine Circulation The signifi cant gains in apparel and textile imports came from two countries: Honduras and Rolling Stones party Falls in Half Vietnam. Imports from Honduras — a Central American Free Trade Agreement member — in- • WWDb: Staffer blog on the • Madonna’s Costumes for Her Sticky and creased 22.6 percent to 137 million SME, while imports from Vietnam continued to rise, up 14.3 new meaning of “high” society percent to 147 million SME. Sweet Tour The top fi ve apparel suppliers in the past 12 months were China, Vietnam, Bangladesh, Honduras and • Global news • Christine Beauchamp to Mexico. China also topped the textile import list, followed by Pakistan, India, Mexico and South Korea. • Vote for Fashion’s Defi ning Moments Head Ann Taylor

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Fairchild Summits is a Division of Fairchild Fashion Group

WWD_ThankYou_081408_FINAL.indd 1 8/12/08 4:28:07 PM 4 WWD, WEDNESDAY, AUGUST 13, 2008

Comfortably chic. That’s the idea for resort, in looks inspired by loungewear and pj’s. — Antonia Sardone act lounge WWD, WEDNESDAY, AUGUST 13, 2008 5 WWD.COM

Rebecca Taylor’s cashmere and sweater over a and top and Christian Cota’s A silk hand- silk, and painted blouse elastic pants. Marc and silk belted by Marc Jacobs shorts by Rachel shoes. Roy New York.

▲ Alexander Charlotte Ronson’s silk Wang’s top, Eberjey’s cotton kimono rib bra with blouse, Tencel and lace trim and tank and silk Zimmerman’s silk pants. pants. Marc Michael Kors shoes. Jacobs shoes.

Mayle’s silk jumpsuit. ASHLEY JONES PHOTO ASSISTANT: STEWART; KIYANNA SSISTANT: Michael Kors shoes. PHOTOS BY JOHN AQUINO; MODEL: ANAIS FOR TRUMP; HAIR BY RYAN TANIGUCHI; MAKEUP BY SOUHI LEE AT DE FACTO USING MAC PRO; FASHION A USING MAC PRO; FASHION DE FACTO SOUHI LEE AT MAKEUP BY TANIGUCHI; RYAN JOHN AQUINO; MODEL: ANAIS FOR TRUMP; HAIR BY PHOTOS BY 6 WWD, WEDNESDAY, AUGUST 13, 2008 WWD.COM In the Mainstream WWDTREND As Buyers Wait, Vendors Delay Cutting Stella McCartney ▲ By Whitney Beckett NEW YORK — Small vendors are rethinking their inventory and orders policies, as boutique owners wait longer to place orders and more carefully scrutinize each purchase. Niche better-priced manufacturers at Moda Manhattan and FAME last week reported they are waiting to cut product until orders have been placed, and that orders are down 20 to 25 percent from last year. The mood among exhibitors at the Jacob K. Javits Center shows here on Aug. 3 to 5 was tempered. On one hand, exhibitors said traffi c was light, and that retailers were waiting longer to order and then order- ing less and more carefully. But vendors also boasted about having success with fall and holiday special novelty items. , dresses and knits in bold colors or prints did particularly well. Boutique retailers reported business to be better than the earnings reports for the major department stores, but they too are changing their buying strategies and holding or cutting their open-to-buys. Cynthia Rusk, buyer for the special occasion boutique Helen Ainson in Darien, Conn., was shopping for holiday and scouting for color at the shows. She said business has been good, which she attributed to the store’s focus on special events as well as customer service. Helen Ainson’s open-to-buys held fl at. “Our buying pattern is a little different — we’re being very mindful of the budget, keeping our orders a little closer to what’s been working, and our timing has shifted a little later,” Rusk said. “We’re being very discerning when we shop, and making sure we are buying the right jewelry and accessories to go with each dress, and really thinking about what our customers want.” ▲ BCBG Max Azria Although business is up for the year at Betsy Fisher, an apparel boutique in Washington, owner Betsy Fisher said she was being more cau- tious and had lowered her open-to-buy by about 10 percent. While shopping the trade shows over the weekend, Fisher was particularly scouting versatile, tailored dresses, mostly for holiday. “I was really looking for items,” said Fisher. ▲ Giuseppe Zanotti “These little shows are such a gut buy — the things I fi nd irresistible that I know my customer will too.” C.C. Couture, a New York-based better line showing at Moda, did well with its key items, which wholesale from $50 to $120, like and dresses in bright jewel tones with novelty details — all for fall and holiday. “Not one person asked me for spring,” said Linda Weitzman, director of marketing and sales for C.C. Couture. Weitzman said the company has cut back its inventory by about 20 percent as orders have slowed down this year. “But what’s really tough is collecting money now,” she added. “Retailers’ credit lines are cut and the credit cards are maxed out. We are trying to help them with extra time because stores are having a really tough time.” A cut-to-order business that turns product in six weeks, New York-based better line Zsa Zsa ▲Eberjey has cut 25 percent less this year as retailers order more conservatively. “For this price point, I don’t think orders are as affected as much as at lower price points, but ▲ Abaeté nothing is immune,” said designer Zsa Zsa. “At this show, people are looking for the great items A novelty that they lack for fall.” from Zsa Zsa did well with novelty jackets, which OVERBOARD C.C. Couture wholesale from $95 to $130, such as an embossed at Moda. It’s out of the dock and onto the deck — for resort, jacket with an ruffl ed neck. fashion stays afl oat with all things nautical. After three decades in the business, New York knit designer Michael Simon has shifted produc- — Mayte Allende Increase in tion to cut its knits after orders are made and has reduced inventory of popular styles by 20 to 25 attendance percent this year. At Moda, buyer favorites from % at FAME, the line of novelty sweaters, which wholesale for $44 to $88, included trapeze vests in bright colors. Moda Manhattan and “The secret to doing business these days is AccessoriesTheShow great customer service,” said director of sales Gary Margulies. “Buyers are looking harder and

over August 2007. THOMAS IANNACCONE AND JOHN AQUINO PHOTOS BY trying things on more often.” Source: Business Journals Inc. Bask, a New York-based better-priced knit company, reported business up 200 percent. Wholesaling3 for an average of $50, Bask’s cardigans, trapeze vests and swing coats with shorter sleeves all did well, particularly in bulkier textures. “We’re item sweaters, which are an impulse buy,” said Bask presi- dent Jeff Scher. “We offer a product that is affordable and diversifi ed, and it’s doing well.” Next door at FAME, Ryu, a junior line in Los Angeles that launched in January, also found success. Sales Sylvia Chun said the strength of orders for the fashion-forward collection, which wholesales from $15 to $37, surprised the new business. “This is our fi rst time here, and we are overwhelmed by the response to our line,” Chun said. ▲ Fendi Not everyone was so upbeat, though. Baltimore-based better line Tribe, which wholesales from $40 to $50, found business slow at FAME. “There are less buyers than normal, and the buyers are writing less than they normally do,” said Robert Gruber, who owns Tribe’s parent company, A People United. “We are cutting to order, which is problematic ▲Cacharel when people are buying later. We have to differentiate our product more from what people can buy much cheaper. I’ve had several customers tell me they are really hurting, depressingly so, people I like.” Exhibitor attendance at both Moda and FAME held steady compared with last August’s attendance, with about 400 vendors at Moda and 700 at FAME, according to Business Journals Inc., which owns both trade shows. Buyer attendance grew 3 percent. While doing its customary 10,000-plus calls to retailers in the weeks leading up to the shows, Business Journals found that more stores had gone out of business than it has ever seen in such calls before, accord- ing to the company, which could not provide numbers. “Coming into the show there was defi nitely a level of concern because the regional shows weren’t doing well,” said Sharon Enright, general manager for Business Journals. “But we came out fl at with last year and right on target. We’re very happy, given the environment.” ▲Tory Burch Business Journals maintained the entrance costs for the show, but invested about 10 percent more to promote it, including publicizing the show dates through August 2009. For more “We’re announcing our dates because we understand that for vendors and retailers to be cost-effective, nautical looks, they need to be able to plan their schedules and book their fl ights and hotels in advance,” Enright said. see WWD.com. ▲ Autumn Cashmere WWD, WEDNESDAY, AUGUST 13, 2008 7 WWD.COM IN BRIEF Belgian Court Rules in Favor of eBay in L’Oréal Case • DUARTE’S NEW DUDS: Henry LONDON — A Belgian court Tuesday found in favor of eBay in a case “L’Oréal believes the court to be mistaken in its decision to Duarte, the leather and brought against the Internet auction site by L’Oréal-owned Lancôme minimize the role of eBay in the sale of products on its platform,” designer who spent more than a over the sale of counterfeit products. the French fi rm stated. “L’Oréal believes that this judgment by decade outfitting Metallica, the The French beauty behemoth, which said it intends to appeal the the court digresses from the interpretation of the e-commerce di- Smashing Pumpkins and other decision, had aimed to stop eBay from allowing the sale of what it con- rective provided in recent months by the European Commission. rockers, is singing a new tune siders counterfeit goods on the Belgian version of its site. It had also re- Today’s interpretation also contradicts that of other European with a women’s contemporary quested that the site take several steps to counteract the sale of counter- courts, in particular the commercial court of Paris in a recent case label called Duarte No. Q65. feit Lancôme goods, including banning certain selling activity — such against eBay brought by other luxury brands.” It is launching for fall with a as the sale of more than three perfumes in a month by the same seller. In June, a French court found eBay guilty of gross misconduct palette concentrated in black “We are very pleased with the Belgian court’s decision,” said regarding the sale of counterfeit products relating to LVMH Moët and white. Cut from fabrics an eBay spokeswoman, adding the site had taken down product Hennessy Louis Vuitton’s stable of brands. EBay was ordered to such as Japanese cotton listings that L’Oréal had contested. “We’re pleased that the court remove related auctions and pay 38.9 million euros, or $58.4 mil- and boiled wool, the silhouettes acknowledged the fact that eBay is willing to work together with lion, in compensation. take unconventional turns with rights holders. EBay wants to work together with brands rather The auction site has also locked horns with Tiffany & Co. On drapes, asymmetric hems and than engage in litigation.” Monday the jeweler said it’s appealing against a July federal court ballooning volume in unlikely According to the spokeswoman, the court considers eBay an on- ruling that eBay could not be held liable for trademark infringe- spots, like the area above the line host stocking information generated by users and is not respon- ment of Tiffany merchandise. knee on cropped pants. Duarte’s sible for the veracity of that information. — Brid Costello signature leather jackets exhibit a capelike drape in the back or a curved panel on the chest. BEAUTY BEAT A look from Henry Duarte’s new label. THELAS

VEGASFASHION DESTINATION... Wholesale prices run from $315 to $420 for the leather pieces, $62 to $80 for knit dresses and $80 to $112 for trousers. Duarte is teaming up with Jon Levine, chief executive officer of the fashion label, who said he aims to generate $2 million to $3 million in wholesale sales in the first year. The line started shipping last month to department stores such as Henri Bendel and Holt Renfrew, in addition to specialty shops including Intermix; Fred Segal Fun in Santa Monica, Calif.; Knit Wit in Philadelphia, and Searle in New York.

• SEARS TO PAY PENALTY: The Consumer Product Safety Commission has reached an agreement with nine firms, including Sears Holdings Corp., to pay $355,000 in civil penalties for failing to report that children’s outerwear they sold had drawstrings. Children’s clothing with drawstrings at the neck are against CPSC regulations because of the danger of strangulation. Firms are required to inform the agency if they are selling any garments with them. Sears agreed to pay a civil penalty of $50,000, according to CPSC. Other firms named in the settlement agreements included A&R Knitwear Inc., AJ Blue LLC, Liberty Apparel Co., Cobmex Inc., Rebelette International Trading Corp., Siegfried & Parzival, Scope THE VENETIAN HOTEL Imports and Vacation Clothing Exchange Inc., which does AUGUST 25-27, 2008 business as Basix USA. • L.E.I. FOOTWEAR DEAL: Jones ATTEND: Apparel Group Inc. has 866-696-6020 broadened its L.E.I. franchise, EXHIBIT: making an exclusive licensing 212-686-4412 agreement with Steven Madden Ltd., which will design, accessoriestheshow.com manufacture and distribute junior and girls’ footwear under modalasvegas.com the L.E.I. brand. The footwear collection will be distributed exclusively to Wal-Mart stores, Properties of Business Journals, Inc. beginning in the spring. 8 WWD, WEDNESDAY, AUGUST 13, 2008

Exec Tech WWD Tech: The Customer Is King

AT THE WWD LEADERSHIP FORUM two video commercials via cell phone and asked consumers to vote for the one they in New York City last month, speakers preferred. Almost nine out of 10 consumers who were sent the videos watched the shared innovative and often inexpen- commercials and voted, said Tom Daly, Coca-Cola’s group manager of strategy and sive ways to improve customer service planning for global interactive marketing. and, as a result, boost sales. To encourage people to try new products, the company also launched a text mes- saging and mobile Web campaign that drove 181,000 consumers into Coca-Cola’s re- tail partners’ establishments. This was as effective as any of the company’s off-line EBAGS.COM POCKETS programs, he said. CUSTOMER SERVICE One way the multibillion-dollar Atlanta-based company is driving profi ts is via the Launched in 1999 and now the world’s use of “smart” vending machines that communicate with mobile devices. Popular in biggest online retailer of bags and ac- Japan, they sell Coke products and will snap a funny photo and send it to a friend’s cessories, eBags has pioneered the use phone as well as dispense ringtones and games. The company plans to roll out the of social media to improve customer machines worldwide. “We can generate nearly two-and-a-half times more revenue per service and sales. machine when we enable it with wireless technology,” Daly said. The company has collected more Coca-Cola has partnered with cinemas, where customers can get deals on refreshments than a million customer reviews since and watch movie trailers over a Bluetooth-enabled phone. The program, which has been 2000, which have increased sales, running for 18 months, has increased Coca-Cola’s and its partners’ sales, Daly said. creating “signifi cant conversion” on Because the mobile environment is complex, Daly advised companies looking to reviewed products, said eBags.com implement such technology to “keep it simple.” senior director of global merchandis- — A.S. ing Nancy Behrendt. Bags that receive consistently poor reviews are removed from the site. R/GA CUSTOMIZES NIKE RETAIL The company receives 25 to 50 “Customers want control of style in all areas of their lives today,” said John Mayo- e-mails a day from customers with sug- Smith, executive vice president and chief technology officer for the R/GA interactive gestions, praise and criticism. EBags is agency, which helped Nike Inc. create its custom business. NikeiD has grown from working on three enhancements to its a small shoe-design program online to include retail stores, mobile commerce and The voice is really Web site requested by customers, in- other lines of business, including equipment and clothing. “ cluding a feature that will let custom- Mayo-Smith showed photographs of a variety of do-it-yourself customized objects, going to be from the ers browse bags by color. The company from guitars to iPod holders. Another slide graphed objects according to their degree also has a blog, which has had the un- of uniqueness and diffi culty of production, from tube socks to wedding dresses. consumers. expected benefi t of keeping the site Nike now has six iD Studios, or stores, where customers can design their own ” ranked highly in search engine results products. This year, the company ran a campaign on a billboard in Times Square in — Nancy Behrendt, eBags at no extra cost. Manhattan that let customers customize shoes via cell phones. The site recently added videos on Customers don’t pay much of a premium for the custom products, and the wait time of topics such as vendor stories, trendy a few weeks is part of the experience. If they order in a store, they leave with a card. brands and staff product reviews. “On the Streets” videos profi le emerging designers. “The amount of time they spend with your brand is giant,” Mayo-Smith said. Conversion has increased four times for products featured in videos. “We’ve got hun- “They’re not just going to the store and picking something off the shelf.” dreds of customers telling other customers: ‘Watch the video,’” said Behrendt. “It’s The return rates are very, very low, he said. Inventory is minimal. the reason they bought the bag.” The New York-based agency’s clients include Bed Bath & Beyond, Levi Strauss & EBags, which has more than 6.8 million stockkeeping units, plans to add customer- Co., Target Corp., L’Oréal, Subaru and Circuit City. generated videos about purchases soon, starting with its own private label line. — C.T.C. “As we are building up the strategy for our eBags brand in relation to our product, it’s really about listening to our consumers,” she said. “Don’t listen to us. The voice is really LIZ CLAIBORNE: THE LAUNCH OF A LOYALTY PROGRAM going to be from the consumers and we are going to use video as a way to tell the story.” What are the basic needs of a Liz Claiborne shopper? It’s a question Michele Rast, — Alexandra Steigrad vice president of marketing for Liz Claiborne Outlets, asked herself constantly while helping to create the company’s loyalty program. WET SEAL’S TEEN SOCIAL The objective was to retain customers, while also luring in new ones, and The purpose of typical loyalty programs is to track the voice of the customer, improve to phase out the 1 million pieces of direct mail Claiborne sent out every month. the customer experience and create brand advocates. The purpose of social media Fortunately, the company already had customer data in its customer relationship is to give the customer a voice, said Jon Kubo, The Wet Seal Inc. vice president and management program. chief information officer. Rast and her colleagues began culling though piles of research on the compa- In April, the retailer unveiled a social networking community on its site where ny’s customers and its competitors’ comparable programs. Rast discovered the Liz teens can create, tag, share, vote on and purchase outfi ts from Wet Seal merchandise. Claiborne shopper is active, older and clips coupons. They can also create profi les, network, block friends and spam, message each other The company decided on a points-based card that rewards members with exclusive and report abuse. discounts and advance notice on sales. Claiborne sent out mail- So far, 1.2 million outfi ts have been created, and the site has ers advertising the rewards program and began testing in select generated a 10 percent increase in revenue. Conversion rates stores in June 2007. double when a shopper visits the fashion community, and 25 Since the program was rolled out to all 100 Outlet stores in percent of buyers visit. Those who visit the community spend February, Liz Claiborne has experienced a 40 percent increase three times as long on the site. in frequency of purchase among rewards members. Of the pro- More than 90 percent of the retailer’s merchandise is on the gram’s 185,000 customers, about 13,000 have already moved up site, and 90 percent of the styles are incorporated in at least to elite status, meaning they can gain points faster. one outfi t. The average is 24. “In this day and age, why does a customer want to give you The idea started two years ago as part of a redesign. “We any information? They don’t unless they are getting something were seeing a signifi cant increase in traffi c on social network- back for it,” Rast said. ing sites to the point where it was really a paradigm shift,” said The loyalty program is expected to have roughly a three-year Kubo. Wet Seal has changed the way it shoots and sizes photos return on investment, she said. of online merchandise so they can be used in the community. Moving forward, some of Claiborne’s initiatives will include Because only 10 percent of teens have a credit card, most of creating a Web site where members can their points bal- their purchases are made in Wet Seal’s stores rather than online. ance, as well as shifting more direct marketing toward the re- But teens can scan an item and look up the most popular outfi ts wards program. on the community or in that particular store on in-store kiosks. — A.S. Out-of-stock items are automatically deleted from outfi ts on the site. (Wet Seal replenishes jeans only.) After three months, a user can delete an outfi t. DSW: BUILDING A SHOE RETAIL GIANT’S Promotions have included Ashlee Simpson and other musi- WEB SITE FROM SCRATCH cians creating their own outfi ts. The next promotion will be a DSW is no stranger to competition. Last year alone, the compa- makeover contest, and a celebrity will design an outfi t for the ny had sales of approximately $1.5 billion, and it operates some winner, who will wear it to an event and receive $2,000. 270 stores. Remaining competitive was the impetus behind the A small number of customers are the most active partici- creation of DSW.com, said Steve Kahn, DSW vice president of pants, said Kubo. “The conversion comes because the general interactive marketing. community is viewing that advice and taking it,” he said. The retailer rolled out a multichannel strategy that empha- — Cate T. Corcoran sized the company’s brick-and-mortar stores. By offering free in-store returns on items purchased online, DSW would lure We were seeing a consumers into the store where they would hopefully spend THE COCA-COLA CO. RINGS UP SALES “ more money, Kahn said. WITH MOBILE TECHNOLOGY signifi cant increase Another vital part of DSW.com is the detailed presentation The Coca-Cola Co. produces about 1.4 billion of the 50.4 billion of the shoes. On the Web site, a pair of shoes may be inspected nonalcoholic beverages served worldwide annually, and is ex- in traffi c on social from every angle, by using zooming tools or watching a high- perimenting with innovative ways to increase its market share defi nition video that shows a 360-degree view of the product. by using mobile technology. networking sites. “We sell shoes,” Kahn said simply. “We try to unleash wom- To build brand awareness, for example, Coca-Cola ran a ” en’s passion for them.” multimedia cell phone campaign in Italy. The company sent out — Jon Kubo, Wet Seal — A.S. WWD, WEDNESDAY, AUGUST 13, 2008 9 WWD.COM

MICROSOFT: INNOVATION something else (“other”). Everybody in an organization has bright ideas, said ShiSh Retailers who are supply-chain leaders carry 15 percent Shridhar, Microsoft Corp. retail industry solutions specialist. less inventory, have 17 percent stronger order fulfi llment, a 35 But how can those ideas bubble up and become a reality in a percent shorter cash-to-cash cycle and 60 percent better profi t short amount of time? margins, he said. People are a top resource in any company, and 68 percent Examples include TradeCard customers Brooks Brothers, of young people are eager to help companies with new ideas, Dick’s Sporting Goods Inc. and Rite Aid Corp., according to he said, citing New Paradigm magazine. Companies such as Gordon. Brooks Brothers started a collaboration with its Asian Starbucks, Tumi, Harley Davidson, Four Seasons and TiVo suc- suppliers last year. Turns increased 28 percent, in-stock levels ceeded with innovative products. FedEx, eBay, Google and Dell reached 98 percent and inventory was reduced 8 percent com- exemplify business model innovation. Toyota, Boeing and Wal- pared with the year before. Sell-throughs increased to 57 per- Mart are examples of operational innovation, he said. cent, up from 49 percent the year before, and the company sold Good tools will increase participation and leverage all em- 17 percent more items than they did the year previously. ployees, not just a select group. Microsoft has married the idea At Dick’s Sporting Goods, private label became 10 to 15 per- of a wiki with innovation to create a simple but powerful tool cent more profi table. Gross profi t increased 44 percent. to help any organization unleash its creativity. TradeCard created a supply chain network for Rite Aid to Employees can post ideas on an internal Web site and rate help it manage 200 to 400 seasonal vendors that change every each other’s ideas. The good ones rise to the top, where they can year and supply fun items such as Valentine Day’s hearts and be evaluated by senior management. The software can be tai- summer sand buckets. lored to an individual company’s needs, with space for explain- — C.T.C. ing why an idea was rejected or accepted, and links to related resources such as employee profi les, blogs and sales data. SONY ENVISIONS RETAILERS USING RFID CARD Microsoft plans to make the idea into a product based on Sony Inc.’s versatile FeliCa can be used by retailers to in- SharePoint and that can be accessed through internal corpo- crease customer loyalty and sales, said Tim Lindner, director rate portals. of strategic business development for FeliCa Americas for Sony Electronics Inc. — C.T.C. In this day and age, The RFID-based cards were fi rst used for travel on the Japanese “ subway system. The cards can be read at a distance. Alternatively, SHOPLOCAL LLC GLIMPSES THE FUTURE why does a customer the same system can be set up on a cell phone instead of a card. OF RETAIL VIA THE INTERNET There are 300 million FeliCa users worldwide today. “The Internet is a marketing tool, not a buying tool,” said Bob want to give you any In 2006, $1 billion Japanese retailer Casual City replaced its Armour, chief marketing officer of ShopLocal LLC. loyalty program with a new one using FeliCa called “Right-On.” The site, which is owned by Gannett Co. Inc., the nation’s information? The average spend increased from $57 to $86. The prepaid card largest publisher of newspapers, is the “interactive version of — Michele Rast, ”Liz Claiborne Outlets transferred money from Internet checking accounts. Forty per- what you fi nd in your Sunday newspaper, localized to the store cent of users were men in their 30s, and women in their 20s and level,” said Armour. What this translates into is a Web version 40s made up the rest. Seventy-fi ve percent of customers chose of a supermarket circular that allows retailers from all over to to use a virtual wallet in their phone rather than a card. localize their promotions based on where the Internet viewer lives. Retailers could bring brands onto their card program and target customers with Currently, Armour said, ShopLocal works with 44 of the top 50 multichannel retail- coupons. Digital signage can be interactive, since the display will sense the person ers. Many merchants are profi ting from online initiatives that bring customers into standing in front of it. The card eliminates printing and distribution costs. stores, he said. PlayStations and Sony laptops will come with the chip next year. “The message that I’m trying to convey is that there is going to be a trillion dollars A university in California is using FeliCa for freshman ID cards and resort opera- worth of sales impacted by the Internet that are going to happen in stores, and by 2012 tors and theaters are planning tests this year, said Lindner. that’s going to be about half of retail,” he said. Right now, 92 percent of consumers do — C.T.C. product research online, and 93 percent of sales still happen in-store. Retailers are letting the consumer decide where to shop by putting in-store information and product information on the Web. They are also giving the consumer the convenience of ordering online and the immediacy of picking up the merchandise in-store. Armour added that companies are fi nding new ways to present the best of their store’s merchandise online, such as Borders’ new virtual bookshelf. “Retailers are trying to answer what I would call three basic questions for consumers, and they’ve been doing this since the dawn of retailing,” he said. “Is the product right for me? What is the price, is it on sale? Where can I get it, is it in stock?” — A.S.

APPLIED RETAIL TECHNOLOGIES SORTS OUT ASSORTMENT “The challenge today for those who have lots of stores is to deliver as good an experience as on their Web sites,” where they are start- ing with a clean slate, said Theodore Rose, principal with consult- ing company Applied Retail Technologies Ltd. Industry mergers, and data and system limitations make it impossible for retailers to understand the assortment of goods that go into all their stores, said Rose, who was once a buyer at Bamberger’s, which was bought by Macy’s. “You cannot possibly sift through all that data and understand what’s going on with your customer.” Retailers need to start with common data, systems and collabo- ration. They need to look at their customer segments and design assortments for them, not just deliver what manufacturers can de- liver, he said. Fortunately, many different vendors are on the cusp of releasing new assortment planning software that will greatly ease diffi culties retailers are having in getting the right merchandise in the right place at the right time. Assortment planning must be done fi rst, so buys will be based on customer demand and store capacity. It must be linked to a space plan. It is not a function of allocation, he said. Forthcoming applications will share business intelligence and marry assortment planning to the visual directive, he said. — C.T.C. TRADECARD: SUPPLY CHAIN EQUALS SERVICE When a store has an out-of-stock, the risk is much more than one lost sale, said Marshall Gordon, TradeCard senior vice president of worldwide sales and marketing. “It’s a potential future loss of a customer,” he said. When an out-of-stock happens, 31 percent of customers will go to a different retailer. “At Victoria’s Secret, almost everything is air freighted,” he said. “Previously we thought that was crazy,” but from the perspective of not losing a customer, a retailer wins, he said. A smoothly functioning supply chain is key to supporting a good customer experience. “If you can’t get the product in the hands of the customer, it’s pretty hard to sell ,” he said. As for the other customers, 19 percent buy the same brand in a different size, another 19 percent substitute a different brand, 13 percent delay the purchase, 9 percent buy nothing and 9 percent do

Untitled-4 1 8/12/08 2:47:21 PM 10 WWD, WEDNESDAY, AUGUST 13, 2008 WWD.COM Financial

Signs of continued credit concerns and rise in profi ts, and NexCen Brands Inc., the owner of Bill Blass, which on Monday got a bit of fi nancial breath- DAILY STOCK WRAP losses among major banks Tuesday wor- ing room from its lender. Retail might help drive the market on Wednesday after investors get a look at July ried investors, who pushed the overall market lower and sent retail and fashion stocks along for the slide. The sales from the Commerce Department. benchmark Dow Jones Industrial Average fell 1.2 percent to 11,642.47, and even another drop in the price of oil to $113 a barrel wasn’t enough to perk up the markets. The Standard & Poor’s Retail Index slipped 1.4 * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the London Stock Exchange are percent to 394.43 after two trading sessions with solid gains. Still, the market was, at times, willing to reward quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs and Hennes & Mauritz is quoted in Swedish kronor. All other those with good news. Among the top gainers in the fashion sector was Fossil Inc., reporting a 71.3 percent European stocks are in euros.

10 BEST PERFORMERS 10 WORST PERFORMERS

DAILY COMPANIES P/E VOLUME AMT DAILY COMPANIES P/E VOLUME AMT HIGH LOW LAST CHANGE HIGH LOW LAST CHANGE

32.96 30.01 Fossil (FOSL) 15.8 5619723 31.94 +10.8% 0.96 0.81 Nitches (NICH) - 2030 0.81 -19.0%

1.18 1.06 Safi lo* (SFL.IM) 8.5 7078345 1.18 +9.9% 7.50 7.50 Hampshire (HAMP) - 100 7.5 -11.8%

2.15 1.25 Hartmarx (HMX) - 100939 2.04 +8.5% 2.02 1.85 Tefron (TFR) - 8173 1.86 -7.9%

0.43 0.39 NexCen (NEXC) - 234841 0.42 +7.7% 4.82 4.34 Retail Ventures (RVI) 1.2 253468 4.35 -7.8%

10.40 9.80 Christopher & Banks (CBK) 21.0 676736 10.3 +4.6% 26.30 24.46 Perry Ellis (PERY) 14.6 175227 24.58 -7.2%

25.54 24.00 Movado (MOV) 11.0 341159 25.25 +4.6% 16.89 15.48 G-III Apparel (GIII) 17.0 72375 15.9 -6.5%

20.00 19.15 Gap (GPS) 15.9 22037238 19.56 +4.5% 21.58 19.88 Macy’s Inc. (M) 12.3 11711171 20.27 -6.4%

0.77 0.71 Charles & Colvard (CTHR) - 146007 0.74 +4.2% 30.60 28.68 True Religion (TRLG) 24.9 1678421 29.04 -6.0%

2.02 1.98 Bluefl y (BFLY) - 25250 2.01 +4.2% 1.83 1.61 Gottschalks (GOT) - 20028 1.63 -5.8%

41.50 39.22 Tod’s* (TOD.IM) 16.3 104465 41.33 +3.8% 22.90 21.26 Lululemon (LULU) 43.6 701730 21.45 -5.5% Whitehall Starts Liquidation Sales WWD sales in 10 years.” 0.1% By Vicki M. Young Along with Great American Group and The projected increase in July retail sales, INDEX WHITEHALL JEWELERS IS IN FULL Silverman Jeweler Consultants, Schaye’s compared with June. liquidation mode with sales beginning firm also managed the liquidation of SOURCE: DEUTSCHE BANK COMPOSITE today. Friedman’s Jewelers. 999.60 A joint venture of national retail “Whitehall has been a leading special- liquidation and asset recovery fi rms — ty retailer in fi ne jewelry for more than Hudson Capital Partners, Great American a century,” said Harvey Yellen, chairman Group, Silverman Jeweler Consultants of Great American Group. “It is unfortu- The number of and Gordon Brothers Group — will man- nate that a brand with such strong heri- countries to ship more age the court-ordered bank- ruptcy liquidation sales. than $1 billion worth of Whitehall fi led a voluntary apparel to the U.S. in Chapter 11 petition in June for reorganization in a Delaware the first half of 2008. bankruptcy court after acquir- -5.55 ing Friedman’s Inc., a bankrupt SOURCE: COMMERCE DEPARTMENT jewelry chain, for $14.3 mil- lion in April. The acquisition, which included certain assets 8 of Crescent Jewelers, previ- ously acquired by Whitehall, added about 78 units to the Fossil Shares Rise on Higher Net debtor’s store count. By May, Chicago-based By Alexandra Steigrad Karan International Inc., signing an Whitehall operated 375 stores agreement to produce and market DKNY in 39 states. But the acquisi- SHARES OF FOSSIL INC. ROSE jewelry in Europe, Asia and the Middle tion of Friedman’s in the hope almost 11 percent Tuesday after the East. Fossil has had the rights to DKNY of expanding the business company beat Wall Street’s estimates watches worldwide since 2000. came too late. In fi scal 2007, with a 71.3 percent jump in second- “During the quarter we advanced

Whitehall posted a net loss of TIM BOYLE/GETTY IMAGES PHOTO BY quarter profits. each of our key growth initiatives, in- $74.1 million, or $2.25 a share, Whitehall Jewelers begins its court-ordered sales today. However, Fossil cautioned analysts cluding expansion of our direct-to-con- outpacing the loss of $45.9 mil- that third-quarter earnings would fall sumer channel, international wholesale lion, or $1.81, in the previous below expectations. businesses and the Fossil brand,” said year. Sales declined 8.8 percent to $242.9 tage has to be liquidated.” For the quarter ended July 5, the Mike Kovar, executive vice president million from $266.2 million in fi scal 2006. Whitehall negotiated an $80 million Richardson, Texas-based watch and ac- and chief fi nancial offi cer. “Although the It is expected that the Whitehall in- debtor-in-possession financing facil- cessories company reported net income state of the economy worldwide remains ventory will be liquidated at below-mar- ity from Bank of America, Wells Fargo of $25.1 million, or 36 cents a diluted uncertain, we will continue to focus on ket prices. The sale, which could last Retail Finance and GMAC Commercial share, compared with profi ts of $14.7 profi table market share growth apply- four-and-a-half months, will include dia- Finance. The DIP facility replaced the million, or 21 cents a share, for the same ing the same disciplines that led to our monds, gold, precious and semiprecious $125 million revolving credit facility it period last year. Revenue was up 15.2 strong fi rst-half performance.” jewelry and watches. had before its Chapter 11 fi ling. That line percent to $353.2 million, versus $306.5 For the six months, net income grew “We’re the biggest jewelry retailer right was enough to keep the jewelry retailer million for the year-ago period. Driven 39.4 percent to $55.4 million, or 80 cents now in the U.S.,” said James L. Schaye, in operation until its liquidation. primarily by the sale of Fossil watches, a diluted share, compared with $39.7 president and chief executive offi cer of Whitehall listed assets of $207.1 mil- international wholesale sales increased million, or 57 cents a share, for the same Hudson Capital Partners. “We’re selling lion and debts of $185.4 million. Among 20.4 percent, 9.5 percent excluding cur- period last year. Sales rose 16 percent to about $1.2 billion worth of inventory that the top trade creditors are: SDC, or rency impact, while domestic net sales $709.4 million versus $611.3 million, for is from both Whitehall and Friedman’s.” Sangam Diamonds Corp., New York, $11.3 gained 1.5 percent. the same prior-year period. Schaye noted that a combination of million; Kiran Jewels Inc., New York, $9.4 Analysts surveyed by Yahoo Finance Fossil anticipates third-quarter di- consumer cutbacks on peripheral spend- million; Combine International, Troy, expected the company to report EPS of luted earnings per share of 53 cents. ing, tighter terms among retail lenders Mich., $7.1 million; Rosy Blue, New York, 25 cents on revenues of $356.8 million Analysts expected third-quarter EPS of and a change in the bankruptcy code $6.9 million; Envisions, New York, $4.5 for the quarter. 56 cents. have led fi rms such as his to experience million, and Leo Schachter Diamonds, The company also said it extended Shares of Fossil closed at $31.94, up the “most active period of liquidation New York, $4.1 million. a licensing arrangement with Donna $3.10, or 10.8 percent. WWD, WEDNESDAY, AUGUST 13, 2008 11 WWD.COM Off-Price Gains Cachet in Tough Economy

Continued from page one jewelry cases at TJ Maxx. About a year on a roll as consumers’ wallets slam shut. and a half ago, The Cube at Marshalls * “We see enormous growth potential in the future and made its debut. Executives described have solid strategies in place to support our goals,” said the concept as a 1,000-square-foot store- Carol Meyrowitz, president and chief executive offi cer in-a-store prototype for contemporary of TJX Cos., on Tuesday, when the giant off-pricer, the merchandise. The Cube recently re- nation’s largest, reported that second-quarter profi ts ceived the green light for a rollout. tripled from a year ago, when there was a big charge for Two years ago, the Runway at TJ a credit card security breach. The retailer also raised its Maxx was launched and it has been in- outlook for the year, and Meyrowitz, in a conference call, stalled in roughly 40 to 50 stores. The expressed confi dence that new customers will remain Runway displays higher-end designer la- loyal when the economy improves. (See story, this page.) bels and has its own signage to make the As if it could read the economic tea leaves and the space distinct from the rest of the store. nation’s mass trading down, the $18.65 billion TJX two “We are defi nitely looking at ven- years ago quietly started innovating in its stores to dors that [we] haven’t done business play up hot categories such as accessories and shoes with, or maybe not that much business, and maximize some that were undertapped, like con- in the past, that are bringing some nice temporary sportswear. TJX also has been showcasing results,” said Gail Karagianis, general * FINANCO TRACES THE RECESSIONARY TREND BACK TO AUGUST 2007; CHART BY FINANCO INC. high-end designer labels at certain locations, and test- merchandise manager of women’s ing StyleSense, a new chain for family footwear and ac- sportswear at TJ Maxx and Marshalls, it out of necessity, not simply thrill-seeking. I don’t cessories in Canada. Germany is another country where in a recent interview. Her responsibilities cover the think it’s fl eeting. ” TJX sees growth. misses’, career, casual, better brands, special sizes, knits Aronson cited several companies such as Brooks In a recent research note on TJX, analyst Mark and sweater categories. Brothers, Polo Ralph Lauren and Saks Fifth Avenue as Montagna of CL King & Associates noted that the com- Stores that haven’t established Runway shops are still among those that are particularly upbeat about the per- pany’s store base isn’t anywhere near maturity, believ- being shipped “an enhanced fl ow of labels,” she said. formance and future for their outlet businesses. ing 1,500 to 2,000 units could be added, on top of the 847 “The Runway is really trying to provide the ‘wow’ factor.” Baccarat is a newcomer to the arena. The French TJ Maxx stores, 776 Marshalls and 289 HomeGoods units In yet another major initiative, 5,000-square-foot luxury crystal brand opened its fi rst outlet in June in already operating in the U.S. The company also has 129 shoe “megashops” at roughly two-thirds of Marshalls the 778,000-square-foot Prime Outlets International A.J. Wright stores and 34 Bob’s Stores. locations were introduced. The biggest change is a shift Orlando. The fi rst Forever 21 outlet is expected to open Regarding TJX’s archrival, Ross Stores, Montagna from presenting shoes by size to presenting them by there, too. sees a bright future, as well, recently writing: “We be- style. “Shoes have become more of a destination versus The center completed a $300 million expansion in lieve Ross is now at an infl ection point for an accelera- a department,” said Karagianis. May and provides a strong mix for those who love the “There are lots of things we are thrill of hunting for a bargain. Among the designer and testing, but not offi cially releas- brand names are BCBG Max Azria Factory Store, Betsey ing,” she continued, ranging from Johnson Outlet, Coach Factory, Hickey Freeman, Hugo new signage and advertising to Boss Factory Store, Juicy Couture, Kate Spade, Kenneth pumping up activewear. Cole, Michael Kors, Saks Off 5th, Sean John Factory Amid the changes, TJX’s two Store, Tommy Hilfi ger, Victoria’s Secret and the only major off-price chains maintain Neiman Marcus Last Call location in central Florida. merchandising differences. There The center is operated by the Baltimore-based Prime is no jewelry in Marshalls, only Retail, which has 21 outlet centers in the U.S. that aver- in TJ Maxx. There is family foot- age 250,000 square feet and comprise a total of 10 mil- wear at Marshalls, but just wom- lion square feet. en’s footwear at TJ Maxx. And While traditional malls struggle with declining traf- Marshalls sells men’s suits, while fi c, at Prime Retail properties, it’s up single digits year TJ Maxx doesn’t. “We really try to to date, according to Karen Fluharty, senior vice presi- keep the two chains different with dent of marketing. Prime measures traffi c in the outlet the way we buy and the way we centers through an infrared system that counts cars in ship. There’s very minimal over- the parking lots. lap,” Karagianis said. “In today’s environment, people are still looking for “TJX has over 500 buyers buy- the brands they aspire to. They’re simply looking to fi nd ing in more than 60 countries,” them in a smarter way,” Fluharty said. “Our standard said Meyrowitz. “The impact of messaging is 25 to 65 percent off every day, and in select department stores tightening in- markets we have amplifi ed the size of that message.” ventory gives us just as much op- Michael Belleveau, president and ceo of Baccarat TJX Cos. reported Tuesday that second-quarter profi ts tripled from a year ago. portunity.” North America, said Prime Outlets International For TJX Cos. and other off-pric- Orlando serves “a broad tourist market and the affl uent tion in margin expansion, given comp momentum, lean ers, “this is a chance for them to shine, and build their population in Orlando.” inventories and reduced new store openings.” He also base for the future,” said Arnold Aronson, managing In June, Burt Tansky, chairman and ceo of Neiman cited fresher merchandise fl ows, and the fact that Ross’ director of retail strategies at Kurt Salmon Associates. Marcus Group, said that for two years, infrastructure same-store sales in California and Florida, two of the “These are established channels of distribution that has been added to support the growth of the Last Call country’s most economically depressed states, are in have grown over the years and are particularly mean- clearance units, and that three would be opening soon, line with the performance of the rest of the chain in ingful in tough economic times. They’re very profi table, bringing the total to 27. Last Call stores sell goods from other states. and [are] doing even better than they ordinarily do.” Neiman Marcus stores or from Neiman’s vendors. “The Street loves some of these companies. When He explained that off-pricers and outlets operate on “During this challenging time, sales at our Last Call you consider the profi t margins are low, the return on lower gross margins than regular-priced stores, but can stores have remained strong,” Tansky said. capital is outstanding,” said Gilbert Harrison, chairman afford to because they don’t spend as much on selling, The $400 million Off 5th developed a 26,400-square- of Financo Inc. “TJX trades at 18 times earnings, where- general and administrative expenses, or build out, and foot prototype, with a cleaner, more modern ambience as Macy’s trades at 5.2 times earnings. typically situate in less prime or remote areas, where that last spring replaced the existing outlet at Prime “In my 36 years of doing mergers and acquisitions, the idea is to not cannibalize the full-price business. Retail’s huge outlet center in Orlando. The outlet sells the best deal I ever did was the merger of Marshalls Also, at outlets, the service provided is limited, mostly labels sold at Saks Fifth Avenue and other high-end with TJ Maxx in 1995, when you look at the value cre- being self-service. stores, as well as Saks’ private label. Discounts start ated,” he said. “In 1995, the total capitalization of the “There is much more customer interest and demand at 30 percent off, and are as high as 90 percent off on combined company was $1.1 billion. In 1998, it was $7.5 for these stores,” Aronson added, and part of it relates clearance goods. billion.” Currently, it’s $15.3 billion. to the primal urge for a bargain among shoppers ev- “We believe there is meaningful new store growth op- In the last two years, TJX has been testing several erywhere. “The hunt [for a great discount] has always portunity for Off 5th, and we look forward to expanding initiatives to elevate the offering, bolster sales and seize been something people like. There is a sense of satis- this new format into other markets,” Robert Wallstrom, upon industry trends, including expanding the accesso- faction fi nding that hidden jewelry or fashion deal they president of Off 5th, told WWD at the time of the proto- ries and handbags department and doubling the size of didn’t expect to fi nd. But now a lot of people are doing type launch. “Productivity is absolutely part of the goal.”

such as A.J. Wright and T.K. Maxx Germany,” “This is a very good environment for real said Carol Meyrowitz, president and chief estate opportunities for A.J.,” said Meyrowitz. TJX Earnings Vault, Firm Raises Guidance executive offi cer, on a conference call with For the fi rst half, earnings soared 78.2 THE TJX COS. INC. ON TUESDAY REPORTED scam. The Justice Department last week investors Tuesday. percent to $394.1 million, or 88 cents a higher second-quarter earnings and sales and charged 11 people with the theft of more than “I have complete faith that our model will diluted share, on a 6.7 percent sales bump to boosted profi t guidance for the year. 40 million credit card numbers from retailers allow us to continue to grow to $30 billion to $8.99 billion. The off-pricer’s earnings shot up 239.2 including TJX, Forever 21, DSW Inc., BJ’s $40 billion and beyond,” she said. The fi rm upped its earnings guidance for percent to $200.2 million, or 45 cents a diluted Wholesale Club Inc. and Barnes & Noble. The 132-door A.J. Wright business, which the year to $2.26 to $2.31 a share from the share. This compared with $59 million, or 13 The 2,615-door, Framingham, Mass.-based drove comparable-store sales up 6 percent $2.20 to $2.25 previously projected. In fi scal cents, a year ago, when charges related to attacks TJX, the largest U.S.-based off-price operation, for the quarter and cut its divisional losses 2008, TJX earned $1.66 a share. on the company’s computer system dragged is using the current economic downturn not by more than half to $765,000, is one of the Shares of TJX dropped 2.2 percent to the bottom line down $118 million. Sales for only to attract new customers looking for concepts that could make a bigger splash. $36.17 in New York Stock Exchange trading the three months ended July 26 advanced 7.1 bargains, but to snatch up real estate for its The chain, which sells accessories, shoes, Tuesday, but Mark Montagna, analyst for C.L. percent to $4.62 billion from $4.31 billion and expanding store concepts and fund its plans juniors, young men’s, kids’ and basics, will King & Associates, attributed at least some were up 4 percent on a same-store basis. for global expansion. move into additional markets next year. The of the decline to investors looking to lock in The attacks on TJX’s computers “Our core businesses are performing U.S. could ultimately support 500 to 1,000 earlier profi ts. subsequently turned out to be part of a global extremely well and funding our growth vehicles A.J. Wrights, said Meyrowitz. — Evan Clark 12 WWD, WEDNESDAY, AUGUST 13, 2008 WWD.COM

WWD West A look from Ella Moss. Economic Woes Shape L.A. Market LOS ANGELES — Molding their offerings to denim company fi nanced by Hudson, blend- buyers made cautious by the economic A Three Dots ed value with fashion in white and light- slowdown, exhibitors at the market that tie-dye dress. weight black denim wholesaling for $45. ended here Tuesday highlighted accesso- Retailers cited a need for affordable ries, moderate-price basics and novel piec- basics as well as high-impact pieces that es in their resort collections. would catch shoppers’ attention. At Designers & Agents, Brighte, “We anticipated our sales would grow, but Ella Moss Growing Boutique Lingerie and the showrooms instead we’re remained fl at,” said Mai Tran, in the California Market Center, New who was buying for her boutique Choya in Licensed Swimwear Mart, Cooper Design Space and Gerry Tacoma, Wash. “That’s why we’re looking for Building, vendors acknowledged that merchandise that really pops.” LOS ANGELES CONTEMPORARY most buyers preferred to place orders at Newer business owners said separating women’s label Ella Moss is testing MAGIC Marketplace, Project and other themselves from the pack was key to their the licensing waters for the first trade shows in Las Vegas at the end of survival strategy. time with an expanded swimwear the month. They cited the more extensive “I’m in my fi rst year of business, so I’m lineup. offerings for spring. really looking for things that stand out — Tustin, Calif.-based swim specialist “A lot of people buy at Vegas in the sum- unique, one-of-a-kind pieces, especially Raj Manufacturing will produce the mer, but there seem to be an awful lot of va- in the accessories category,” said Monica swimwear under a three-year licens- cancies this market, a lot more open space Treacy, who was browsing Caria Designs ing agreement with Ella Moss. The where vendors used to be,” said Ru Scott, jewelry at D&A for her Ella Mon store in brand marketed a limited swimsuit co-owner of Punch boutique in Santa Rosa, Seattle. “I’m really trying to fi ll that catego- collection developed fully in-house to Calif. “In 11 years I’ve never seen it this ry to help carry me right now.” specialty stores before the agreement. empty and slow.” Other retailers also cited accessories as a “It has been an initiative of the Several companies displayed basics driver of business, and said their buying was company to go after licensing start- that retail for less than $100 along with particularly focused on bags and belts and ing this year,” said Jonathan Saven, higher-priced items punched up with spe- other leather goods, especially items Ella Moss’ chief operating offi cer. cial fabrics and treatments. with trim or fringe detailing for fall. “We decided to take a product that “We started a price-driven division a year “A lot of girls can’t afford a we had a little bit of momentum ago, just a little ahead of when times whole new dress right now, but with, but we hadn’t rolled out. We started getting tough, and our retail- a belt can totally make a new don’t have expertise here…Raj has ers have thanked us for help- outfi t,” said Hyde designer a reputation for being one of the ing them increase volume Ana Cacao at Brighte, where [swimwear] leaders.” at a lower price,” said Priti A Jalda clutch. she reported brisk sales for Pamella Protzel, Ella Moss’ cre- Jain, national sales man- black Gucci-inspired belts ative director, will continue to be re- ager for People Like Frank, with fringe and gold pyra- sponsible for the swimwear’s design. at Brighte in the California mid studs, and Prada-inspired The debut licensed collection, set to Market Center. “Instead ombré patent leather belts, whole- hit stores in November, will comprise of placing a $10,000 order, saling between $16 and $59. seven groups with one to three color they’re placing a $5,000 “It’s back to elegant basics for us, we’re ways and three to four silhouettes, order with the same out for clean, classic looks,” said Deborah including a cutout one-piece, a ban- number of pieces,” she Larkin-Morgan, who was buying in the deau and a triangle tie-side. Retail said, noting that knit tops California Market Center for her JinJor bou- prices range from $120 to $180. wholesaling for $55 were tique in Olympia, Wash. “I’m trying to fi nd a For swimwear distribution, more popular than $400 classic, wide white belt, something that will Ella Moss is targeting stores its jackets. For more images, go with high-waisted skirts and pants, but I sportswear is carried in such as Vendors continue to wres- see WWD.com. haven’t had any luck at all.” Barneys New York, Neiman Marcus, tle with the challenge of how Some contemporary bag lines at Brighte Bloomingdale’s and Saks Fifth to make themselves stand out. seen such a slow show. It’s completely reported that buyers were still looking for Avenue. “You have to differentiate tragic for a small designer.” novelty in items such as a leaf-green leath- Saven declined to project fi rst- yourself in this economy,” said The August market traditionally “is er tote for $250 that sold out at Linea Pelle, year sales, but said, “I don’t expect Francisco Hernandez, representing Seattle- a slower market as it is one of the busi- a $245 taupe clutch at Jalda and a python it to be more than 10 or 15 percent of based Jarbo at D&A in the New Mart. Jarbo er show months of the year,” said CMC tote with hand-painted fl owers wholesal- our total business.” added bright colors for the fi rst time to its spokeswoman Deborah Levine. “Combined ing for $1,800 at Carlos Falchi. Mo Industries Holdings Inc., contemporary sportswear dominated by with the economic concerns of the indus- At the Boutique Lingerie show in the owner of Ella Moss and Splendid, a somber palette of black and gray. A silk try, we expected this quieter market.” Gerry Building, show founder Samantha has seen revenues triple since 2004, printed in an ikat pattern burst- Los Angeles-based vendors such as hand- Chang said buyer traffi c “has been weaker generating an estimated volume of ing in orange and magenta caught buyers’ bag designer Beth Springer and sweats line since last year because of the Las Vegas $80 million last year. That success attention, as it was fashioned into a ruffl ed Royal , which launched an activewear shows, but if they are coming, they are buy- was attractive to Greensboro, N.C.- halter top wholesaling for $155. line, did their best to offer new trends such as ing, even if they are being fairly conserva- based manufacturing behemoth VF Bright colors also were seen in Myne’s tie-dye and dip-dye, to spruce up basic styles. tive.” The merchandise ranged from $62 Corp., which acquired one-third of $106 aqua silk miniskirt trimmed with gold Three Dots of Garden Grove, Calif., cotton camisoles from Poet to a $250 corset the capital stock of Mo Industries studs, LAMade’s $32 halter maxidress avail- reintroduced tie-dye after a two-year ab- from Cadolle. this year — terms were not disclosed able in 18 hues including tangelo, Aude’s sence to supplement its basic Ts that re- Among popular apparel categories — and the ability to purchase the re- burnout cotton fl eece costing under $70 and tail well for less than $100. It offered hal- were long dresses and skirts in prints, as maining stock next year. Odd Molly’s $122 blue cotton dress ter dresses, banded tops and cap-sleeve well as fl ared jeans and other high-waist- Raj Manufacturing has a de- cinched at the waist with a -embroi- dresses in slub jersey dyed in yellow and ed trousers. cades-long track record in the li- dered waistband. green or pink and purple, all wholesaling “Long fl owing dresses are it, they’re sell- censed swimwear business. The At Brighte, where vendors complained for $57 to $74. ing really well for me right now,” said Sarah company’s licensed portfolio fea- about the dearth of buyer traffi c, brightly Novelty was evident at Vernon, Calif.- Coble, who was buying for her Sonoma, tures Guess, Tommy Hilfiger, St. colored maxidresses from lines such as based Mek Denim, which embellished Calif., store Fleurtique. “Trina Turk made John and O’Neill. Voom by Joy Han, Tee Party and Tiffany back pockets with metallic in jeans a beautiful bathing suit cover that I just or- Saven said Mo Industries is in Alana also stood out for resort, though wholesaling for about $100. dered and am planning to sell as a dress. I talks for license arrangements in most of the 61 exhibitors were also show- However, Raven kept its $106 straight- try to keep my price points reasonable and other categories, but he doesn’t an- ing fall for immediate orders. leg trousers clean in raw denim, while value is appealing to customers — my sales ticipate another licensed launch Michelle Zamir, a partner in the Los Hudson fi nished natural denim tinted in are actually up this year.” this year. However, he predicted that Angeles-based Tiffany Alana, which was navy with a resin rinse for $75 wholesale. — Khanh T.L. Tran, Anne Riley-Katz the next licensing agreement will be launching at Brighte, said, “I’ve never City of Others, the new moderate-price and Marcy Medina made for the Splendid brand. — Rachel Brown WEST WATCH STACY ADAMS STYLES WOMEN: After making men’s shoes for 133 retailers that carry its men’s products. years, Stacy Adams is moving to clothe women in tailored suits The primary female customer is 30 to and dresses for the fi rst time. Produced under license by Los 45 years old, he said. The company Angeles-based manufacturer BenMarc International, Stacy Adams hopes to sell the women’s clothes to Women’s Suits and Dress Collection will offer as many as 24 styles Macy’s Inc., Levines Department Store wholesaling from $49 to $89 for the spring selling season. and catalogue company Midnight Stacy Adams is owned by Glendale, Wis.-based Weyco Group, Velvet, among other retailers. Davidoff % which posted sales of $232.6 million last year for shoe brands such said he expects the new women’s 4.2 as Stacy Adams, Florsheim and Nunn Bush. Women’s apparel is the business to generate $2 million in sales Amount of retail buyers with 10 or more latest license added to Stacy Adams’ portfolio, which offers men’s in the fi rst year. years of work experience who earn base wear in nine categories, including suits, outerwear and socks. “We just want to make sure it’s Steele Davidoff, Stacy Adams’ vice president of licensing, who the right product for our customer,” A sketch from Stacy salaries of at least $200,000. is based in Los Angeles, said the company decided to enter the Davidoff said. Adams’ women’s line women’s business after requests from about a half-dozen specialty — K.T.L.T. launching for spring. SOURCE: CAREER MANAGEMENT EXECUTIVE RECRUITMENT WWD, WEDNESDAY, AUGUST 13, 2008 13

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WAREHOUSE AVAILABLE ASHLEY

LOS ANGELES, CA by 26 INTERNATIONAL, INC. Turn key operation fully set up Job located in Los Angeles Director of Retail Stores warehouse for Garment Company. ASHLEY by 26 International, Inc. is a company that specializes Private sportswear label currently The ideal candidate has a minimum of 3 years experience in fashion retail 10,000 SqFt, sewing room with in Junior Clothing. Our design and sales office is located in looking for committed, talented, management or equivalent buying experience in a contemporary designer machines, cutting tables, pattern the garment district of downtown Los Angeles, CA. We are experienced individuals to be part or luxury environment. Must also have experience managing & forecasting room, shipping area w/equipment. looking for competitive applicants to fill in the position of: of a growing team. Work in a fast a sales plan, preparing open to buy, strategizing sales plan by location, Offices with furniture, phones, paced environment, with unlimited and analyzing results. We are seeking someone who has had multi store computers, etc. Located in Gardena, DESIGNER/MERCHANDISER potential. We are currently hiring accountability, is hands-on, has experience in opening stores, has a high 20 minutes from the Los Angeles for the following positions: taste level and a strong fashion sense, and has visual garment district. Contact Rick: Mid-level experienced designer w/a min. of 2 yrs. experience Production Supervisor merchandising/presentation exp. Candidate must be a strong leader with 310-515-1603 ext 101 in fashion specializing in sportswear. Candidate must be a Publicist a proven track record of recruiting, training, inspiring and retaining store great shopper and has an eye for trends as well. Fabric Sourcer teams to achieve desired results. E-mail resume to: [email protected] Graphic Artist Pls e-mail resume to: [email protected] or fax: to: 626-457-8439 Director of Sales & Marketing Production Samplemaker/ Patternmaker ASHLEY Design Assistant by 26 INTERNATIONAL, INC. Must have 3+ yrs fashion industry exp. For immediate consideration, ACCOUNT EXECUTIVE ASHLEY by 26 International, Inc. is a company that specializes please forward us your resume, Seeking LA based Acct Exec with in Junior Clothing. Our design and sales office is located in salary history, and desired position 3+ yrs handling w. coast specialty the garment district of downtown Los Angeles, CA. We are title to: [email protected] accounts. Must have existing looking for competitive applicants to fill in the position of: contemporary buyer relationships, extensive knowl. of the territory & PRODUCTION PATTERNMAKER road travel exp. Bachelors degree VISUAL MERCHANDISER and strong communication skills & SALES ASSOCIATE With 5 yrs experience and knowledge in grading and fabrics. req’d. E-mail resume/salary history: Must be punctual, hardworking, with positive spirit and great Jobs located in Beverly Hills, CA communication skills. [email protected] Established luxury boutique of Subscribe women’s ready-to-wear is currently E-mail resume to: [email protected] seeking experienced: today! Visual Merchandiser: Min. 2 RADCLIFFE years experience req’d in window ASHLEY Radcliffe, is looking for display/visual merchandising, by 26 INTERNATIONAL, INC. representation on the West incl. work with mannequins Call 800.289.0273 Coast. Candidate must be /props. Must have working knowl- SALES REPS ASHLEY by 26 International, Inc. is a company that specializes Well-established Canadian Line based out of LA with at edge of computers. for individual in Junior Clothing. Our design and sales office is located in least 3-5 years experience seeking sales reps for boutiques Sales Associate: Min. 3 year the garment district of downtown Los Angeles, CA. We are & majors in the Mid-Atlantic & in the ladies contemporary retail selling experience req’d in subscriptions, looking for competitive applicants to fill in the position of: denim market. Must have West Coast territories. We have women’s clothing. Polished and been in business for 35 yrs. showroom and have strong self motivated. or email PRODUCTION MANAGER specialty store following. Contempory knitwear & novelty, We offer competitive Please forward your resume in Qualified individual will be responsible on the production updated coordinates. Prices range compensation. MS Word, PDF, or Text format to: [email protected] activities of the company for both Domestic & Overseas; from medium to better. Please fax knowledge of manufacturing process is essential and must resume to: 514-384-4621 or e-mail Please send your resumes [email protected] have a 3 yrs. experience for the apparel industry, preferably to : [email protected] attention to HR west coast at: with a background in lingerie. [email protected] E-mail resume to: [email protected] Interview for positions in Design, Production, Sales, Planning, Technology, Marketing, Creative Services, and more. Maximize your job search with multiple interviews in one afternoon. Network with recruiters from top companies in the industry. Preview exhibitors and the positions they’re hiring for on fashioncareers.com. Attend a panel discussion with industry experts. Use the free Show Guide to learn more about your local job market. Fashion. Retail. Beauty. Choose your future.

The Apparel World’s Premier Hiring Event! September 10, 2008 | 10 a.m. - 4 p.m. Metropolitan Pavilion | 125 West 18th Street | New York

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Pre-register now on fashioncareers.com! 14 WWD, WEDNESDAY, AUGUST 13, 2008 WWD.COM/CLASSIFIEDS

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JOBBER/EXPORTER We buy better goods. All categories, including fabrics. Immediate $$. Please call 212-279-1902 BUSINESS SALES COMMERCIAL DEVELOPMENT REAL ESTATE MANAGER Daniel Swarovski crystal eyewear is We are seeking candidates to fill the following positions ASAP. seeking a dynamic individual to lead Join a strong, stable company in NYC, and be part of our success! our new corporate sales initiative. TECHNICAL DESIGNER The ideal candidate will live in the 1407 BROADWAY Metro NY area, will have a Bache- SHOWROOMS/OFFICES with Gerber or Lectra skills GETTINGER MGMT lor’s Degree in a business related Bob Forman 212-944-6094 x13 ASSOCIATE DESIGNER & ASSISTANT DESIGNER field, a strong corporate sales back- with embellishment layout skills ground, and 5 years of sales manage- Pls e-mail resume to: [email protected] or fax to: 212- 730-8799 ment experience. Experience in fash- ion / lifestyle products, jewelry, or watch industries a plus. 100 West 33rd Street Silhouette Optical, Ltd. offers a com- Manhattan Mall: Showroom/Office petitive salary and bonus structure Available immediately for Sublease along with an outstanding benefits 20,000 rsf will divide. Flexible term. package. Beautiful Lobby, Qual. tenant roster. Convenient to all transportation. 212-713-6933 Please submit resume in confidence: Call for details: [email protected] or fax 518-270-3151

Exceptional candidates required for the following positions: SENIOR KNITWEAR DESIGNER Lower Production Cost TECH KNITWEAR DESIGNER American living in Shanghai with EXECUTIVE ASST TO CEO office will oversee your production and RETAIL ASST MANAGER (CT.) develop new ideas. Has sourcing and * JOBS *JOBS *JOBS * many years exp in USA and China. Artist - Girls 4-16 For details, please visit: Please contact Lou Nardi 646-248-1193 DESIGNER Artist Girls- Boys-Jrs. - Mens- $HI www.ChristopherFischer.com/ or e-mail [email protected] Major apparel co seeking designer for Cutter - Electra - Freelance employment size 0-7 boys sportswear. 5 yrs minimum Designer-Assist-Assoc Boy-Girl-Jr. experience required. Responsibilities Designer Boys I-20 Sportswear include development of product from Designer Girls I-16 Sportswear CAD design through showroom sample Product or Production Assist - College Grads Production as well as directing graphic artist, pattern Production Coord or Asst - Bi-ling Chinese maker and sewers. Must be able to Production Mgr-Assist-Coordinators Coordinator/Manager generate tech packs. Individual must Technical Designer & Assistants NY Apparel Co. seeks person to interact Patterns/Samples/Production be motivated and skilled to handle Technical Designer Boys - Toddler daily with sales/design and overseas multiple tasks, work under pressure Call B. Murphy(212)643-8090; fax 643-8127 factories. Issuing P.O.’s, L/C’s, production Any Style. We do Bridal/Evening and meet deadlines. E-mail resumes reports, margin summaries; overseeing Gowns custom made & wholesale. to: [email protected] LUTZ & PATMOS all factory approval/production track- Call: 212-278-0608/646-441-0950 PRODUCTION MANAGER ing; and follow-up timing and logistics. DESIGNER & SALESPERSON Knits / Sweaters Resp for all facets of Must be organized, detail oriented; good dom + int’l prod. E-mail resume: communication and computer skills a Patterns/Samples/Production Jr. Sportswear Co. looking for talented must. Salary commensurate w/ experi- designer & salesperson who love fashion jobs@lutzand patmos.com Full Service, Fine, Fast Work. ence. Please email resume to: and are creative, organized, and detail [email protected]. EOE Any Style oriented. Seeking energetic individual Patternmaker Call Casey: 212-560-8998 / 212-560-8999 Merch. Mgrs $85K-$150K Planners/Allocators $65K-$85K who have ability to multi-task & meet Production Coordinator Sr. Buyers (luxe) $90K-$150K Fabric Mgrs (luxe) $80K-$150K deadlines. Designer response from concept thru production. Proficiency Seeking organized and detailed team PATTERNS, SAMPLES, $90K-$150K Acct. Execs. $60K-$100K Sales Mgrs (hndbgs) in Illustrator & Photoshop req’d to make Arthur S. Levine player. Min. 3 years of experience. PRODUCTIONS Designers (kids, juniors, footwear, graphics, sweaters, mens) detailed sample tech packs for overseas Responsibilities include: Overseas Patternmakers correspondence, coordinating and All lines, Any styles. Fine Fast Service. Recruiting Assistant...... $30K-$35K factories. Fax to: Steve: 212-840-0500 We are seeking 3 experienced Call Sherry 212-719-0622. managing production timelines, main- patternmakers on the Lectra System. taining status reports, working on all ... AND AMAZING FREELANCE OPPORTUNITIES!!! Experience must include sportswear procedures and requirements pertain- and dresses. Salary commensurate ing to orders. Please email resume to: with exp, excellent benefits pkg. Please [email protected] PATTERNS, SAMPLES, Please email resumes to: [email protected] e-mail resume to [email protected] For freelance opportunities: [email protected] or fax to; 212-763-2890 PRODUCTIONS visit us on the web at: www.fourthfloorfashion.com PRODUCTION Full service shop to the trade. FASHION CAREER OPPORTUNITIES COORDINATORS Fine fast work. 212-869-2699. Ileen Raskin, Apparel 212-213-6381 Patternmaker "On the Marks" has immediate temp, Nancy Bottali, Accessories 212-213-6386 Couture house specializing in evening temp-to-perm and permanent openings Assistant Designer Cold Weather - Division Head seeks organized, exp’d professional that Major Intimate Apparel Manufacturer Fast growing 25 yr old NY accessory Ed Kret, Textiles/Apparel 212-213-6384 for PRODUCTION COORDINATORS. works well under pressure & deadlines. 2 positions must have WAL-MART is seeking an Assistant Designer. Ideal co. seeks Division Head for cold [email protected] Must have good communication skills. candidate should be organized, detail weather. Individual must have 3+ yrs exp. Retail Link a must. Others require www.raskinexecsearch.com Emphasis on custom as well as on AS400. Direct-hire spots to 55K. Other oriented and a team player. Resp. in- in this industry. Must also have hands production. Must be able to create from clude: Communicating with overseas on exp. in production, merchandising positions 17-19 per hour. Email resumes sketch & drape. Excellent opportunity. to [email protected] or fax to 212-532-6892 office and factories, sketching, proc- and sales. The right individual will Please e-mail or fax resume to: essing artwork, preparing sampling/ oversee entire business from Asia to [email protected] / 212-481-1968 production packages, and assisting NY and report directly to principles. Production Coord. Associate Designer in all phases of de- Compensation pkg includes salary and Major Apparel Co located in midtown velopment, which includes specs and profit sharing. Forward cover letter and FREELANCE PATTERN MKR $$$$$$ PRODUCT DEVELOPMENT area seeks individual w/ strong follow garment details. Must be computer lit- resume to: [email protected] Runway. Collection Lines. Women’s garment importer seeks indi- up & organizational skills. Resp include erate and have knowledge of Illustra- [email protected] or 212-947-3400 vidual to handle all facets of our product tracking, daily contact with factories & tor. Travel may be necessary. Great development and production area. sales. Order overseas samples. Must company and full benefits! Please fax Fast pace environment, must be self- have knowledge in customs/quotas. resume to K. Firth at 212-842-4020 or motivated, organized, team player. Entry Must be able to multi-task. 3 - 5 yrs email: [email protected] E.O.E Freelance Tech level to 3 years experience. production exp required. Proficiency E-mail resume to: [email protected] in Word, Excel and Outlook. Excel Design Assistant communication skills. Fax to: 212-763-2890 DESIGNER $75K Priv label co seeks Freelance Tech Des BOYS LIFESTYLE APPAREL Asst - Possibly leading to a perm posi- PRODUCTION MANAGER $90-95K. Min 4 yrs exp w/ Strong Graphics tion. Candidate should have at least 2- PRODUCTION ASST $30-40K Current exp in private label outerwear E-mail: [email protected] 3yrs industry exp. Measuring, Specing, Min 1 yr exp. AS400 or Excel Skills produced in China req’d. Technical KARLYN FASHION RECRUITERS and comm with overseas. Strong fit & E-mail: [email protected] knowledge of construction of gar- BAG DESIGNER garment construction req. Computer lit- KARLYN FASHION RECRUITERS ments. Will travel to China. Chinese or FLIGHT 001 is seeking 1-3 yrs exp, erate req & proficient in Excel / Illus- Korean Bilingual preferred. Midtown co. prod dev, Illustrator and spec skills trator. Qualified exp.candidates only! [email protected] 973-564-9236 req. Send resume/samples/salary Send resume: [email protected] PRODUCTION ASST. [email protected] Leading children’s apparel co. seeks a Production Patternmaker highly motivated and detail oriented Large, domestic sprtswr co. in Bklyn DESIGNER individual to oversee all aspects of seeks head production patternmaker. Graphic Designer production to ensure on-time delivery Must be detail-oriented, organized, have Major apparel co seeking designer for thru daily communication between size 0-6x girls sportswear. 5 yrs minimum Major apparel co. seeks graphic designer complete knowl. of garment construction, with experience in girls 0-16. Individual design/sales and overseas vendors. able to identify fit/spec issues & offer experience required. Responsibilities Responsibilities include: follow-up include development of product from must be creative and detail oriented. solutions. Excell. salary/benefits. Please Responsibilities include executing the with overseas factories, delivery tracking e-mail resumes to: [email protected] BOOKKEEPER & CAD design through showroom sample & spreadsheets. Strong communication as well as directing graphic artist, pattern art from start to finished packages for #1 Fashion Resume Expert production. Will work with mock up skills req’d. Must have good working CHARGE-BACK maker and sewers. Must be able to knowledge of Microsoft Outlook, Word P/T EXEC/ADM ASST Staff Thru Executive-Wholesale/Retail "On the Marks" has immediate openings generate tech packs. Individual must samples and embroidery dept. Must be Access. co. seeks reliable P/T Asst to able to work in fast paced environment . & Excel. Free Evaluation - Lifetime Updates for a F/C bkkpr w/Apparel bkrnd. Sal be motivated and skilled to handle E-mail resume with salary CEO (Mon-Thur only). Good computer GILBERT CAREER RESUMES to 45K. Charge-Back person needed. multiple tasks, work under pressure E-mail resumes to: skills (type 50+): Word, Excel & Email. [email protected] requirements Attn Charles to: (800)967-3846 amex/mc/visa Exp. a must. Sal 40K. Email resumes and meet deadlines. E-mail resumes [email protected] Good command of English language; fashionresumes.com to: [email protected] to: [email protected] resp. for phones. Fax Res 212-869-7811 WWD, WEDNESDAY, AUGUST 13, 2008 15 WWD.COM

most recent data reported, ad pages through the MEMO PAD September issue at Seventeen are off 5 percent, Limited Too Changing to Justice Cosmogirl’s declined 15 percent and Cosmopolitan’s IT’S ALL ABOUT THE VALUE ADDED: Given the ad slide ad pages declined 13 percent, according to By Arnold J. Karr in publishing, it’s no surprise Hearst Magazines publishers’ estimates. is pulling out all its tricks for the third iteration According to Clinton, 30 Days has grown to a AFTER A LARGER-THAN-EXPECTED SECOND-QUARTER LOSS, of its corporate marketing program, 30 Days of sizeable business for Hearst. The company now Tween Brands Inc. will convert 560 Limited Too stores to its more value- Fashion, this September. The dedicates a staff of 12 to 15 to oriented Justice nameplate by May, expanding to more than 900 stores. program includes a 92-page the project, compared with six The move comes after a dismal quarter. The four-year-old New special onsert sent to a million three years ago. The program Albany, Ohio-based specialty retailer, which caters to girls ages seven subscribers of Hearst magazines, has expanded to Australia and to 14, posted a net loss of $6.7 million, or 27 cents a diluted share, an interactive Web site complete the U.K., and has spun off against analyst expectations of a loss of 1 cent. In the year-ago period, with blogs, a TV series, contests similar events in the home and Tween earned $2.1 million, or 7 cents a share. Sales rose 4.4 percent and promotions and sponsored beauty areas. This year, the to $223.1 million, but fell 8 percent on a comparable-store basis. events from concerts to fashion company is committing “seven However, the company said comps rose 3 percent at Justice shows. And probably anything fi gures” on a promotional stores and declined 11 percent at Too units. else Hearst can develop in the campaign for 30 Days of “Dramatic times require dramatic moves,” Mike Rayden, chair- next few weeks. Fashion, including full-page ads man and chief executive offi cer, told WWD. “Limited Too basically The program this year covers in Time Out New York, fashion started this segment of the tween business and, up until the end of Harper’s Bazaar, Seventeen, trade outlets, taxi tops and bus 2007, Limited Too and Justice coexisted very nicely.” O, The Oprah Magazine, Marie shelters (last year, the company But Limited Too’s merchandise, costing 20 to 25 percent more Claire, Cosmopolitan, Cosmogirl, spent less than $1 million than Justice’s, performed poorly in the era of “$4-a-gallon gasoline Town & Country and Esquire. on promotions). According to and the meltdown on Wall Street,” he said. MasterCard, Estée Lauder and Clinton, the program generated Justice continued to average double-digit same-store sales increas- A Diamond Is Forever are the $25 million in advertising, fees es, as it has for 14 quarters. Justice also was helped by parents’ grow- main sponsors of this year’s and sponsorships this year, ing acceptance of off-mall shopping. Ninety Limited Too units are program, with each receiving ads tripling its revenue from 2007. being considered for possible conversion to off-mall Justice stores, in the supplement and on the And beyond driving revenue to and another 26 will be closed by the end of the current fi scal year. Web site, and, since brands are Hearst Magazines’ corporate Although the Limited Too nameplate will disappear, the brand will increasingly demanding their own The cover of Hearst’s 30 Days of Fashion division, individual titles used live on in the top 175 to 200 Justice doors and on the Internet, Rayden spotlight, customized events. it as a much-needed boost to said. He expects fall and holiday merchandise to be gone by January The latter is a new offering this year, explained their own business. Jill Seelig, vice president and and the refl agging of stores to be concluded by the end of April. Michael Clinton, Hearst’s executive vice president, publisher of O, struck a partnership with Lycra that By narrowing its scope to a single brand, the company anticipates chief marketing offi cer and publishing director. “Last resulted in the fi ber’s manufacturer, Invista, placing annual aftertax savings of $20 million to $25 million, including $15 year, we did one big event at the Hearst Tower with an an eight-page advertorial in the September issue. million in home offi ce head-count costs and $9 million in reduced event with photographer Peter Lindbergh and fed all the “Without 30 Days, it may have been a smaller marketing and store operation expenses. About 148 positions will be sponsors into the event,” he said. program,” said Seelig. — Stephanie D. Smith eliminated at headquarters, “but we’ll have the best people running Debby Hughes, senior vice president of global a simplifi ed brand situation that is already proven,” Rayden said. sponsorships at MasterCard said the fashion-based THE GRAY LADY SQUEEZED: The New York Times Co.’s The company will incur charges of about $18 million, or 45 cents program provided a counterbalance to its other stock dropped 6 percent to $13.24 on Tuesday a share, to make conversions during the second half of the current sponsorships. “We realized that our portfolio was after a report from Bloomberg that the company is year. This will push earnings for the period down to a range of 35 signifi cantly weighted toward men” — the brand is facing pressure to cut its dividend “as credit quality cents to 65 cents, assuming a comp decline of 6 to 9 percent and a sponsor of Major League Baseball, the National deteriorates amid record advertising declines.” gross margins of 33 to 35 percent of sales. Football League and the National Hockey League A spokeswoman did not respond to a request for Although Justice has far less brand recognition than its older sis- — “and we needed a richer dialogue with women. comment by press time. As reported, Standard ter — 52 percent versus 97 percent — Rayden expects to narrow the Fashion is a universal currency for women.” On & Poor’s BBB- rating was placed on CreditWatch difference as the company dedicates its “catazine” (a combination Sept. 4, the company will host a event with Tory negative three weeks ago, and on Tuesday, Moody’s catalogue and magazine) and its Web site exclusively to Justice. “I Burch at the Hearst Tower, where the designer will Investors Service told Bloomberg that one option to would guess that Justice’s brand awareness would get to 75 percent show her spring collection. save the Times’ rating from falling to junk status is this year and 85 percent next year,” he said. Of course, the current business environment to decrease its dividend. Besides, Rayden said brand equity means less when customers in publishing makes programs like 30 Days or In June, ad revenue for the New York Times will soon outgrow their demographic designation. WWD parent Condé Nast’s Fashion Rocks even Media Group fell 18.3 percent and the publisher’s “We couldn’t sit around and let it bleed to death,” he said of more important this time around. Hearst hasn’t net income fell 82 percent during the second Limited Too. “We’re not talking about adults who have a lifelong been immune to the downturn. As of July 21, the quarter, to $21.1 million. — Amy Wicks affi nity for a brand. We went with the younger sibling.”

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