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Three's Company BALLY SAID IN PLAY/2 BLOOMINGDALE’S NEW BOSTON STYLE/11 Women’sWWD Wear Daily • The Retailers’ DailyFRIDAY Newspaper • November 17, 2006 • $2.00 Beauty Three’s Company Clarins is revamping its color cosmetics line; Shiseido is updating its six-year-old treatment line, The Skincare, and Givenchy is launching a new lipstick, Rouge Interdit. All three moves are aimed at the same target: gaining a fatter slice of a lucrative market. For more, see page 5. Gap Inc. Still Struggling: Slow Turnaround Seen As Net Declines 10.8% By Jeanine Poggi he comeback at Gap Inc. remains a Twork in progress. As the $16 billion retailer reported a 10.8 percent decline in third-quarter earnings Thursday, due in part to sagging sales at Old Navy, chief executive officer Paul Pressler admitted it still will take some time to rebuild foot traffic in the group’s stores. The company lowered its full-year earnings guidance by 5 to 6 percent, but said on a conference call that it was focused on the turnaround and the retailer’s long-term prospects. “We’re creating great buzz in See Gap’s, Page 14 Y MEGAN MCINTYRE PHOTO BY JOHN AQUINO; STYLED B PHOTO BY 2 WWD, FRIDAY, NOVEMBER 17, 2006 WWD.COM Bally Said for Sale, Cole a Suitor? By Miles Socha million euros, or $419 million to $437 million, re- spectively, at current exchange, and a similar tar- WWDFRIDAY PARIS — Swiss accessories and fashion firm Bally get is set for 2006. Beauty is in play, and Kenneth Cole is said to be among Bally’s core product categories — with about 50 the bidders, WWD has learned. percent of sales from shoes, 40 percent from ac- GENERAL According to market sources, Texas Pacific cessories and the balance from ready-to-wear — Sagging sales at Old Navy contributed to Gap’s 10.8 percent decline in Group, which snapped up Bally in 1999, is said to be resemble Cole’s defi ning elements. Recently, Cole third-quarter earnings. readying an exit plan, having restructured the fi rm beefed up management ranks and announced a 1 and reached breakeven for the fi rst time last year. plan to upgrade its Kenneth Cole New York brand The holiday fragrance business is building momentum, thanks to Asked if the company was for sale, a Bally from better to the “affordable luxury” category. 4 upscale skin care and trendy color cosmetics. spokeswoman said Thursday, “We are not aware A spokeswoman for Kenneth Cole said it is com- Clarins is retooling its color cosmetics line this spring in an effort to of anything.” pany policy not to respond to industry rumors. capture a greater share of the lucrative makeup market. However, industry sources said it would be log- The identity of other potential bidders could 5 ical for TPG to take advantage of Bally’s current not immediately be learned. Donald Robertson is expected to be named senior vice president, momentum and cash out. Over the past two years, Based in Fort Worth, TPG has been among the 6 creative development, for the Estée Lauder brand. the privately held company has cited increased most active private equity funds in fashion and Bloomingdale’s newest location in Chestnut Hill, Mass., has a strong sales, healthier margins and better cost effi ciency. retail. Last year it added Neiman Marcus Group Global sales increased between 15 percent and to an investment portfolio that includes J. Crew 11 emphasis on designer apparel. 20 percent in 2005, from 345 million euros to 360 Group and Ducati Motor Holding SpA. Thakoon is launching an accessories line on his own, starting with an 12 eyewear collection. Pucci will celebrate its 60th anniversary with a limited-edition collection of 12 four iconic designs from the company’s archives. Chung Wins Fashion Fund Award Classifi ed Advertisements.............................................................15 To e-mail reporters and editors at WWD, the address is fi rstname. NEW YORK — Perseverance award to further execute her Justin Giunta for Subversive paid off for Doo-Ri Chung, who design plans. The Mulleavys Jewelry, and accessories design- [email protected], using the individual’s name. received the third annual CFDA/ and Panichgul each picked up er Devi Kroell. More than 120 WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Vogue Fashion Fund award $50,000. Along with the fi nancial design businesses requested ap- VOLUME 192, NO. 105. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one Thursday night. reward, all three parties plications this year. Of the 88 that additional issue in January, two additional issues in March, May, June, August, October, November and December, and three This year’s runners-up will meet regularly with a were submitted, half advanced to additional issues in February, April, and September by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers Inc.: — and they share equal team of business mentors the second stage before the se- S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and C.O.O.; standing — were Rodarte’s chosen based on the de- lection committee whittled down Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; David Laura and Kate Mulleavy signers’ individual needs the contestants to 10. Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice Presi- and Thakoon Panichgul for business expertise and This year’s winners were se- dent_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. for Thakoon (for more on resources. lected by a nine-person committee Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. Thakoon, see page 12). Chung and the run- that included Vogue editor in chief 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RT0001. Canada post return undeliverable In 2004, Chung made a ners-up topped a field Anna Wintour, CFDA executive di- Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, run at the prize but lost to of fi nalists that included rector Steven Kolb and Barneys ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR Proenza Schouler’s Lazaro Georgina Chapman and New York vice president and fash- DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four Hernandez and Jack Keren Craig for Marchesa; ion director Julie Gilhart. weeks is required for change of address. Please give both new and old address as printed on most recent label. PHOTO BY STEVE EICHNER PHOTO BY Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other McCollough. Her apparent Doo-Ri Chung Phillip Lim for 3.1 Phillip This is shaping up to be a U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. disappointment following Lim; Jeffrey Costello and memorable year for Chung, who First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, that “envelope please” moment Robert Tagliapietra for Costello took home the Swarovski Perry and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To was captured in Douglas Keeve’s Tagliapietra; Milla Jovovich Ellis award for emerging wom- subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make documentary “Seamless.” and Carmen Hawk for Jovovich- en’s wear designer at the CFDA our subscriber list available to carefully screened companies that offer products and services that we believe would As the 2006 winner, Chung Hawk; David Neville and Marcus awards in the spring. interest our readers. If you do not want to receive these offers and/or information by mail and/or e-mail, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. pocketed a $200,000 monetary Wainwright for Rag & Bone; — Rosemary Feitelberg WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANU- SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPAR- ENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, Investment Gains Boost Sears’ Net OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED By Vicki M. Young Edward Lampert ears Holdings Corp. on Thursday posted Quote of the Week Sthird-quarter earnings that fell below Wall Street’s consensus estimates, reporting an earn- ings gain mostly from investments as sales de- clined at its U.S. nameplates. I was inspired by satellites. By lasers. Net income for the quarter ended Oct. 28 more “ than tripled to $196 million, or $1.27 a diluted By the moon. I looked into the future. I share, from $58 million, or 35 cents, in the same year-ago period. Revenues fell 2.1 percent to $11.94 was never inspired by a woman’s body.
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