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WTHURSDAY, APRIL 25, W2013 Q WOMEN’S WEAR DAILYD Q $3.00

*8(66B&RYHU:UDSBZLWKIODSB)5217LQGG 30 xGUESS_CoverWrap_with flap.indd 2 4/10/13 4:36 PM WWDBASEL WOOL WINNER Feature Presentation ERMENEGILDO ZEGNA UNVEILED A SPECIAL COLLECTION A LOOK AT THE TOP TRENDS IN WOMEN’S WATCHES IN AUSTRALIA TO MARK THE 50TH ANNIVERSARY OF ITS AND THE CHANGING DYNAMICS IN CHINA. PLUS SUPERFINE WOOL AWARDS. PAGE 3 MUCH MORE AS BASELWORLD KICKS OFF. SECTION II

SPRING 2014 BRIDAL NEW YORK COLLECTIONS WWDTHURSDAY, APRIL 25, 2013 Q WOMEN’S WEAR DAILY Q $3.00 MORE THAN 100 KILLED Apparel Factory Collapse Latest Bangladesh Tragedy lapsed so quickly there had been By MAYU SAINI little time for people to reach safety. The fire department and YET AGAIN. other official agencies have been Another apparel factory di- working to find and rescue sur- saster in Bangladesh has stirred vivors from the building, which an outcry over safety codes and eyewitnesses have described as working conditions after more a “mess of cement and stone, all than 100 people are feared dead piled untidily together.” as Rana Plaza, an eight-story The Institute for Global Labour building in the town of Savar, a and Human Rights said at least suburb of the Bangladesh capital 105 garment workers were con- Dhaka, collapsed at around 9 a.m. firmed dead, and the death toll Wednesday. is expected to rise. An estimated The disaster was met by a new 1,000 workers have been injured, round of demands for reform of the organization said, and 600 had Bangladesh safety codes and work- been rescued. ing conditions, and renewed calls for The institute said there were examination of the failures of factory four garment factories in the eight- inspection programs in the region. story building — New Wave Style, The building housed several Ether Tex, Canton Tech Apparel garment factories where more and New Wave Bottoms. than 2,500 people worked, ac- “Bangladesh is tragically cording to officials from the Ban- known for its lack of proper build- gladesh Garment Manufacturers ing codes combined with out- and Exporters Association. The of-control graft,” said Charles number of people still buried in Kernaghan, director of the insti- Something New the debris was unclear at the end tute. “It is the workers who pay the of the day, a police official told ultimate price. What took place At his runway show on Monday, nearly every one of Oscar de la WWD. He said the building col- SEE PAGE 4 Renta’s princess brides was bedecked in layers of lovely white and ivory silk organza. But he ended on a different note, with an unexpected dose of girly pink. Here, his blushing bride in a tulle Jones Streamlining Operations wrap and gown with ivory silk organza flower appliqués and lace As reported, activist inves- embroidery. For more from the shows, see pages 6 and 7. By LISA LOCKWOOD tor Barington Capital Group has taken a little over 2 percent stake NEW YORK — The Jones Group in Jones and has been pushing for Inc. is streamlining operations to it to sell off some smaller brands improve the company’s profitability. and tighten up operations. Card Chief among them is the clos- said Wednesday’s actions had noth- ing of about 170 underperforming ing to do with Barington’s recom- stores, which will result in a reduc- mendations. “I’ve been working on tion of the domestic retail staff by this for months. I started on this in about 18 percent, or about 750 peo- December and laid the groundwork ple. In addition, the company plans for this. We confirmed we met with to trim several wholesale divisions them and listened to them, as we do and the supply chain, resulting in with all shareholders,” said Card. the elimination of about 2 percent Barington officials weren’t of the workforce, or 100 people. available for comment. “Given the impact it will have As Jones continues its turn- on our associates, our decision around efforts, both the domestic to streamline operations was dif- retail division and the wholesale ficult. However, we believe these sportswear division remain chal- actions will position the company lenged. In 2012 domestic retail gen- for maximum operating leverage erated $585 million in revenues, and improved profitability as our down from $631 million a year ago. businesses recover and grow,” said The domestic wholesale sportswear Wesley R. Card, chief executive of- division accounted for $782 million, ficer of Jones. Card said termina- down from $892 million a year ago. tion notifications began this month Card noted that the 170 store and will continue through the first closings include the 50 that were half of 2014. SEE PAGE 5 PHOTO BY JOHN AQUINO 2 WWD THURSDAY, APRIL 25, 2013 WWD.COM BEAUTY BEAT Bare Escentuals Weighs on Shiseido THE BRIEFING BOX the business. He said Shiseido He said Bare Escentuals will IN TODAY’S WWD By AMANDA KAISER had to limit the investments it was start to invest more in promo- making in Bare Escentuals to keep tional and marketing activities to TOKYO — Shiseido Co. Ltd.’s un- the business profitable and in line be more competitive with other A fall look from derperforming Bare Escentuals with its valuation so it’s time to cosmetics brands, although he the Plectrum by division will cause the Japanese rectify that situation. declined to give investment fig- Ben Sherman beauty giant to post its first full- “We are very bullish on Bare ures. He said the brand will also collection. For year loss in eight years but the Escentuals, Bare Minerals as a revisit its retail distribution of more, see American brand is still consid- brand. It’s a sizable brand for us 200 stores in the U.S. and close WWD.com ered a key part of the group’s and it has contributed over the some stores, but these won’t be a long-term growth strategy. last couple of years significantly significant number of locations. Shiseido warned Wednesday in terms of profit, in terms of turn- Fischer also said Bare Minerals that it will post a net loss of 14.7 over and in terms of cash,” Fischer will be rolling out more skin-care SHERMAN billion yen, or $177.87 million at said. “We have to face reality now products next year, which should BEN average exchange, for the year and we should not delay [the write- help grow the business. OF ending March 31 as it books an im- down] further for the sake of the “It’s a growing market, the

pairment loss of 28.6 billion yen, brand and the future of the brand.” United States, and you know there COURTESY or $347.1 million, on the goodwill Fischer declined to give sales are only a few growing markets left associated with Bare Escentuals, a figures or projections for Bare and everybody rushes in. So that PHOTO company known for its powdered Escentuals but a Shiseido spokes- [competition] has increased and mineral-based foundation. In woman specified that the brand is we have to adjust for that,” he said. More than 100 people are feared dead as Rana Plaza, an January, when releasing its nine- posting double-digit sales growth. Shiseido has faced some sig- eight-story building in Savar, Bangladesh, collapsed without month numbers, Shiseido said it Bare Escentuals’ annual sales nificant challenges recently. Last warning at around 9 a.m. on Wednesday. PAGE 1 expected full-year net income to were north of $500 million when month, the company’s presi- fall 27.7 percent from a year ago to Shiseido bought the company in dent and chief executive officer 10.5 billion yen, or $127.05 million. 2010. Fischer was quick to point Hisayuki Suekawa resigned unex- The Jones Group Inc. is streamlining operations to improve Shiseido said that Bare out that Bare Escentuals has a pectedly, citing stress and a strain the company’s profitability. PAGE 1 Escentuals, which it acquired in higher profit ratio than many of on his health as the reasons behind 2010 for a hefty $1.7 billion, has the other brands in Shiseido’s his departure. Chairman Shinzo On Tuesday night, 800 people descended on Moore Park’s not been performing as well as portfolio and is “significantly” Maeda, who had retired from the Royal Hall of Industries in Sydney to fete the 50th edition of expected and the gap between higher than the group’s average. ceo role before Suekawa took on the Ermenegildo Zegna Superfine Wool Awards. PAGE 3 its sales budget and sales perfor- He specified that the business has the position, returned to manage mance has been widening over been generating three-digit mil- the company on a daily basis. Levi Strauss & Co. said Wednesday it has tapped former the past few months. lions of dollars worth of cash flow The company has been un- Carlsberg brewing company executive Roy Bagattini as its new Still, the group’s corporate ex- over the last few years. derperforming both in its native head for its Asia-Pacific operations. PAGE 3 ecutive officer Carsten Fischer “It’s a profitable business for Japan and abroad, particularly in stressed Shiseido believes in us, it’s a good cash generator and the key market of China. Global expansion, brand extensions and reaching out to male the business potential of Bare it’s something worth fueling,” According to the guidance consumers are among the top priorities for Pomellato following Escentuals. He characterized the he said, forecasting that Bare provided Wednesday, Shiseido the deal to sell a majority stake to Kering. PAGE 5 recent sales performance as a Escentuals’ top line will be flat or sees full-year net sales coming temporary setback attributable to fall slightly in 2013 and will start to in at 677.50 billion yen, or $8.20 The men’s contemporary market is thriving at retail and overall macroeconomic conditions recover in 2014. “We want to make billion. That compares with Theory, a pioneer in the category, is aiming to capitalize on and increasing competition, partic- sure we don’t stretch ourselves too January’s estimate of 680 billion the trend. PAGE MW1 ularly in the arena of home shop- much with the sales forecast.” yen, or $8.22 billion. ping network QVC. The executive Fischer said Bare Escentuals The company actually inched said ultimately the company decid- is seeing strong growth in interna- up its operating profit forecast to Mark Maidment, Ben Sherman’s new chief executive officer, ed to write down the value of Bare tional sales and the company is fo- 26 billion yen, or $314.60 million, is seeking clarity, consistency and stability for the U.K.-based Escentuals to give it more financial cusing its efforts on select markets from its previous estimate of 24.5 brand. PAGE MW2 flexibility down the line to develop such as the U.K., Japan and Brazil. billion yen, or $296.45 million. The impetus behind Ippolita’s first men’s collection was to create jewelry for the guy who wasn’t being served by the current market. PAGE MW2

P&G Beauty Business a Work in Progress A growth spurt in the men’s market in Miami has resulted in signs of momentum. Moeller said cent of sales holding or growing a rash of new boutiques and store expansions catering to this By MOLLY PRIOR the category’s new launch program share in the month of March. We forgotten sector. PAGE MW7 — which includes Pantene Expert have more work to do but trends THE PROCTER & GAMBLE CO. Collection and Vidal Sassoon Pro are continuing to improve.” ON WWD.COM continues to grapple with how to Series, among others — has re- Third-quarter earnings attrib- fix its beauty business. stored share growth in the catego- utable to P&G were $2.6 million, MEN’S: Mark Maidment is turning his attention to Ben During the company’s ry with value share up nearly one or 88 cents a diluted share, com- Sherman’s main collection, focusing on the price structure third-quarter earnings call on point in March. pared to $2.4 million, or 82 cents and “rebalancing” the collection. For more, see WWD.com. Wednesday, the consumer prod- “The earlier results of Expert a share. The company’s net sales ucts giant told Wall Street analysts Collection have been very good, gained 2 percent to $20.6 billion, that it has begun to reclaim lost delivering shipments, display and up from $20.19 billion. Organic CORRECTIONS market share across a number of sales gained 3 percent. I Patina Miller attended the South Carolina Governor’s School its other categories — oral care Beauty sales in the quarter for the Arts & Humanities. A story on page 10 , Tuesday, errone- and razors included. But it seems declined 2 percent to $4.8 billion, ously described her mother as its founder. that growing the beauty business due to aggressive promotional is proving to be a trickier feat. activity from competitors in hair I Adriano Goldschmied ended his association with AG “We’ve been working to 2% care and skin care, according to Adriano Goldschmied when he sold his stake in the brand to strengthen the organization and DECLINE IN THIRD-QUARTER P&G. Beauty’s organic sales de- Koos Mfg. in 2004. Details of his involvement were incorrect in the business now for some time,” clined 1 percent. a story on page 4 of WWD Denim in Depth on April 17. BEAUTY SALES AT P&G. Bob McDonald, P&G’s chairman, P&G said it continues to work president and chief executive of- to improve productivity while driv- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS ficer, told analysts. “We’re starting trial results at or above our going- ing out costs. The company, which [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. to see progress....We’ve launched in plans.” In March, P&G expand- last February said it planned to COPYRIGHT ©2013 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. a number of new innovations, and ed the line to Latin America by reduce the number of nonmanu- VOLUME 205, NO. 85. THURSDAY, APRIL 25, 2013. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, May, June, August, October and December, and two the innovation program looks even launching in Brazil. Moeller also facturing employees by 5,700 by the additional issues in February, April, September and November) by Fairchild Fashion Media, which is a division of Advance stronger in the future. We have added that Vidal Sassoon sham- end of its fiscal year, had cut 6,250 Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, more of what we call bigger change poos and conditioners are ap- roles by the end of March, or about Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, NY, innovations coming in the future, proaching a 2 percent value share, 10 percent more than originally and at additional mailing offices. Canada Post 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 and we’re [pleased] about that.” He as shipments are nearly double the forecasted. It plans to further trim Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North added, “I expect the performance of company’s prelaunch estimates. nonmanufacturing roles by an ad- Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. the beauty organization to improve Taking a wider view, Moeller ditional 2 to 4 percent each year Please give both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or quarter-to-quarter and sequential- said that overall the company held over the next three years. inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine ly. And we’re going to continue to in- or grew market share in businesses The company said it’s on pace is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. vest in it both in terms of innovation representing more than 50 percent to deliver more than $1.2 billion You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt and in terms of marketing.” of sales in the quarter, and saw sales in savings this fiscal year in cost of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For all request P&G’s chief financial officer, Jon strengthen at the end of March. of goods sold. It’s reinvesting for reprints of articles please contact The YGS Group at [email protected], or call 800-501-9571. Visit us online at Moeller, added that P&G will con- “In the U.S., we held or grew part of those savings into market- www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that sider “fill in” acquisitions across its value share in businesses rep- ing spending, and will continue we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at portfolio, including in beauty. resenting two-thirds of sales in to shift a great portion of its P. O . Box 15008, North Hollywood, CA 91615-5008 or call 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 P&G’s hair-care business, the March quarter,” said Moeller. media spending to digital efforts. ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER which introduced 150 stockkeep- “Results strengthened as the McDonald said, “We’re going 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 ing units across hair care and color quarter progressed with busi- to continue to bring out a large DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A in January alone, is showing early nesses representing over 70 per- number of innovations.” SELF-ADDRESSED STAMPED ENVELOPE. WWD THURSDAY, APRIL 25, 2013 3 WWD.COM Zegna Celebrates Australian Wool Australian Celebration Collection cap- wool clip, with 20 microns being the aver- By PATTY HUNGTINTON sule range was available in the com- age,” said Stuart McCullough, Australian pany’s four boutiques in Australia and Wool Innovation chief executive officer. SYDNEY — Any relationship that lasts a New Zealand from Wednesday, as well as “We don’t think that price is bad but we half century deserves a gold celebration Zegna’s David Jones concessions — five don’t think it’s brilliant either. But at the and that’s what Ermenegildo Zegna threw months ahead of its global release. superfine area — 18-17-16 microns — for the Australian wool industry this week. At an estimated cost of 5 million to 7 those prices are appalling.” On Tuesday night, 800 people de- million Australian dollars, or $5.1 mil- “We say the superfine wool growers scended on Moore Park’s Royal Hall of lion to $7.1 million, and partially sub- in Australia have become an endan- Industries here to fete the 50th edition sidized by the wool industry’s market- gered species,” said Darryl Carter from of the Ermenegildo Zegna Superfine ing and research and development arm Whyworry Merino Park at Uralla, near Wool Awards. Australian Wool Innovation, the cele- Armidale, during a farm visit attended by Via a series of black velvet curtain re- bration was Zegna’s biggest global event WWD. “We need the Zegnas and the peo- veals, the 58,000-square-foot Edwardian to date, the company confirmed. ple at the top end of the market, they’re era show pavilion transformed from mul- “I think it’s the first major event that a the only ones who see the quality.” timedia exhibition to runway show space fashion brand is launching in Australia — Over at the nearby Wilson’s Creek to nightclub — where partygoers cheered it’s the right moment to be here and we do property, another wool grower, Tony Gall, on the Hundy family from Mudgee, New it before anybody else,” said Gildo Zegna, demonstrated mustering, drenching, South Wales, winners of both Ermenegildo who described the company’s relationship shearing and wool classing — in a wool Zegna’s Wool Trophy 2013 and the Vellus with Australian wool growers as “very spe- shed so immaculately maintained not Aureum Trophy 2013. The evening cial.…It’s like we’re part of the family.” even the Galls’ Australian Kelpie sheep- wrapped up with a set by Australian indie The party was the culmination of dog Boof was allowed inside, lest his hair HUNTINGTON

rock outfit The Temper Trap. three days of festivities. contaminate the merchandise. PATTY

Joining Ermenegildo Zegna Group International journalists and VIP cus- “We have got to be particular about BY chief executive officer Gildo Zegna tomers were treated to Sydney Harbour things, because what we are produc- and chairman Paolo Zegna were NSW cruises, a garden lunch at Peterson’s ing here is a luxury product,” said Gall, PHOTO Governor Marie Bashir, wool industry Winery in Armidale, NSW, in the New while handling one 14.5 micron fleece. Wool grower Tony Gall. representatives, almost 300 journalists England farming region, which is located “This is the sort of thing you make and Zegna VIP customers from 31 coun- an hour by air from Sydney, following bus angel’s underwear out of — it’s probably “Golden Fleece” trophy for wool of 13.9 tries, Korean-American actor Daniel tours of seven of Zegna’s top wool suppliers. come from a sheep that looks like Elle microns and finer was launched in 2002. Henney, Hong Kong-based actor and It was all invaluable exposure for Macpherson,” he quipped, before adding, With over 50 percent of Zegna’s prod- singer Leon Lai and Chris Hemsworth, Australia’s superfine wool growers, in superfine argot: “It’s bright, it’s stylish. ucts using Australian superfine merino the Australian star of “Thor,” “Star Trek” whose highly labor-intensive 18.5 micron It’s got bloom about it, not too much dust, wool, the family has seriously considered and Ron Howard’s upcoming Niki Lauda and under products account for 20 per- no ‘vegetable fault’ [or plant contamina- “many times” investing in wool farms to biopic “Rush.” cent of the total Australian wool clip of tion] and it handles. It’s beautifully soft. ensure supply, according to Gildo Zegna. “Any excuse to come home is some- 350 million kilos, or 770 million pounds. It’s true to type. It’s a strong possibility Zegna plans to open at least two thing I leap at — they’re few and far According to a strategic review pub- for the Zegna trophy.” Australian stores by the end of the year. between at the moment, so it seemed lished last month by the Australian Zegna’s relationship with the Australian sales rose 26 percent from like a fine event and obviously celebrat- Superfine Wool Growers Association, how- Australian wool industry in fact dates 2011 to 2012, said Gildo Zegna, who ing one of our most iconic industries,” ever, most superfine wool enterprises have much further back than 50 years. added that the company is keenly aware said Hemsorth, who was wearing a not been able to cover the costs of produc- The company first began sourcing of the growth of the Chinese tourist mar- three-piece pied-de-poule suit and tie tion for a decade and urgently need to wool locally in the Twenties. In 1963 in ket in Australia. and pochette featuring artwork from move toward the production of finer and Tasmania, at a time when the industry Now Australia’s single most valu- indigenous Australian artist Dorothy lighter wools and greater marketing efforts. was moving towards coarser fibres, Zegna able tourism market, worth 3.8 billion Napangardi, all from Zegna’s capsule “We are in a space now where we’ve launched a regional superfine wool Australian dollars, or $3.9 billion, a year, Australian Celebration Collection. had an Eastern Market Indicator of above award called the Ermenegildo Zegna the Chinese tourism market is expected Unveiled at the end of a runway 1,000 cents for pretty much on three years Perpetual Trophy. The award became na- to reach 9 billion Australian dollars, or show of the brand’s fall collection, the — that’s the average of the Australian tional in 1980 and the Vellus Aureum or $9.2 billion, a year by the end of the de- cade, according to Tourism Australia. “The local market is still I would say The runway show. Megan two thirds of the market, but that one Gale third is growing very rapidly,” said Zegna. at the A superfine wool producer since event. 1948, Zegna’s 2013 double trophy win- ner Ed Hundy, of the Windradeen prop- erty, also holds the world record for the finest superfine fleece — 10 microns, which won the Vellus Aureum Trophy in 2010. Hundy’s 2013 Vellus Aureum fleece was 11.5 microns. Asked for his recipe for success, Hundy replied, “Selection, bloodline, nutrition — overfeeding will broaden the microns and you can’t underfeed or the wool will become tender — plus perse- verance, a little bit of dedication and a lifetime ambition to grow the best wool.” Not to underestimate, perhaps, one surprising ingredient — ginger and cin- namon biscuits, made by his wife Jill, that he gives to the family’s winning sheep. He added, “You go out the back door and all you’ve got to say is ‘Come on’ and they start running.”

Asia will make him a strong addition to our leadership team at Levi Strauss & Co.” Levi’s Names Bagattini for Asia-Pacific Post Andrew Martin, who has served as younger consumers in China and other another brewing giant, SABMiller plc, for Levi’s interim leader for Asia-Pacific By AMANDA KAISER Asian markets. In 2010, Levi’s staged 18 years in a variety of roles in countries since October 2012, will resume his role a major runway show for the brand in including Russia, China and India. as vice president of finance for Asia- LEVI STRAUSS & CO. said Wednesday Shanghai and set an ambitious expan- This appointment is the latest ex- Pacific commercial operations when it has tapped a new head for its Asia- sion target to open some 50 stores by the ample of how Chip Bergh, who became Bagattini joins the company in June. Pacific operations, poaching a manager end of the year. However, last year the president and chief executive officer of Last year, Levi’s Asia-Pacific operating from brewing company Carlsberg. company opted to pull the plug on the San Francisco-based Levi Strauss & Co. profit declined 38.2 percent, to $66.8 mil- Levi’s said Roy Bagattini will as- brand in Asia and focus on growing its in the fall of 2011, has been setting up a lion, on a 13.1 percent revenue decline to sume the role of executive vice presi- core Levi’s brand instead while moving fresh management team for the company. $757.7 million as the company absorbed dent and president of commercial oper- forward with Denizen in the U.S., where Bergh commented, “Having led the weak wholesale conditions, unfavorable ations for Asia-Pacific in June. He will it is carried exclusively in Target stores. commercial operations behind some of currency fluctuation and the effects of the be based in Singapore. Bagattini has more than 20 years of the largest beverage companies, Roy has Denizen closure. The region in 2012 was re- Bagattini replaces Aaron Boey, who experience in the consumer goods and extensive experience in developing and sponsible for 16.4 percent of corporate reve- left the company on Nov. 25. Levi’s beverage industries, Levi’s said. Most re- implementing growth strategies for brands nues of $4.61 billion and 9.9 percent of total hadn’t previously disclosed Boey’s cently, he was senior vice president for in intensively competitive environments. regional operating income of $676.7 million. departure. During his tenure, Levi’s Asia and Africa at Carlsberg. Before his His combination of operational expertise — WITH CONTRIBUTIONS FROM launched its Denizen brand targeting four years at Carlsberg, he worked for and understanding of emerging markets in ARNOLD J. KARR

ZDFLQGG 30  4 WWD THURSDAY, APRIL 25, 2013 Bangladesh Stricken by Another Factory Tragedy {Continued from page one} sential to this effort. AAFA con- was really an act of negligent homicide tinues to be in touch with our by the building’s owner and management members as we begin the long of the four factories.” process of learning all of the An official from BGMEA, who request- facts surrounding this tragedy.” ed anonymity, told WWD that although In Bangladesh, Mohammed the government had stepped up efforts Aslam, owner of a smaller gar- on compliance issues at garment facto- ment factory in the Dhaka area, ries across the country, it was still a work said the shock waves of the inci- in progress. “The efforts will simply have dent were being felt across the to change and intensify after this trag- city and that many of the own- edy,” he said. S ers feared further reprisals from HT

The Bangladesh Center for Worker RIG their global buyers.

Solidarity said the factories were mak- The past six months have UMAN

ing items for clothing retailers Mango of H been particularly rough for the Spain and Benetton of Italy. garment industry in Bangladesh, The Clean Clothes Campaign called AND which is the second-largest ex-

for immediate action from interna- ABOR porter of ready-made garments L tional brands following the tragedy. The in the world. The $20 billion tex- CCC said activists entered the ruins of tile industry is also one of the Rana Plaza and found labels linking The CCC called on brands to sign on to GLOBAL largest employers in the country. major European retailers to the factory, the Bangladesh Fire and Building Safety FOR But morale has been severely TUTE

also citing Mango, as well as the U.K.’s Agreement immediately. The CCC, to- I tested after the fire at Tazreen T Primark. Rana Plaza also produced for gether with local and global unions and S Fashions in November. well-known European and U.S. brands, labor rights organizations, has developed IN The situation on Wednesday including C&A, KIK and Wal-Mart, the a sector-wide program for action that in- THE was reminiscent of the Tazreen OF

Y Outside the CCC said. These brands were involved in cludes independent building inspections, S collapsed New disaster, particularly as local the fire at the Tazreen Fashions factory, worker-rights training, public disclosure Wave factory in news reports have quoted a gar- not far from Savar, where 112 workers and a review of safety standards. The COURTE Bangladesh. ment worker from the fifth floor died in a fire five months ago. German agreement has already been signed by of Rana Plaza as saying that

discounter KIK was also involved in PVH Corp. and German retailer Tchibo PHOTOS cracks in the building were no- the Ali Enterprises fire in Pakistan, and needs two more companies to agree ticed the previous day by some where nearly 300 workers perished last for it to be activated. The labor signato- tation of the designs and possibility of workers but that factory managers urged September. ries are now calling on all major brands checking the standards.” them to ignore the cracks and return The killed and injured workers at sourcing in the industry to sign on to the She said often a two-story structure to work. At the Tazreen fire too, work- Rana Plaza were producing garments initiative in order to ensure its rapid becomes a five- or an eight-story build- ers said that managers blocked the exit when their factory, allegedly with illegal- implementation. ing without having the proper readjust- doors while telling workers that the ly built floors, suddenly gave way with a Sharan Burrow, general secre- ments done to the structure and the problem was simply smoke and they loud sound, leaving only the ground floor tary of the International Trade Union foundations. should return to work. intact. This latest collapse provides yet Confederation, a global umbrella group “These are normally illegal, but in The Tazreen fire was quickly fol- further evidence that voluntary compa- that includes the AFL-CIO, said, “The big many occasions, the authorities are look- lowed by others, in particular one at ny-led monitoring has failed to protect companies are avoiding their responsi- ing the other way or taking some kind of Smart Fashions, Dhaka, in January that workers’ lives, the CCC said, adding that bility to actually respect safety standards bribes,” Valdés claimed. claimed seven lives, drawing attention unnecessary deaths will continue until that are global standards. Mind you, the The UN official stressed companies to the safety requirements of factories as brands and government officials agree government has been negligent in this such as international garment brands well as the poor working conditions for to an independent and binding fire and regard. We must meet safety standards. also have an “ethical and social responsi- the workers. building safety program. Safe jobs save lives.” bility” to ensure facilities they are using The government has been making an “It’s unbelievable that brands still Burrow, who represents 175 million meet safety and building norms. effort to react to the situation. Raziuddin refuse to sign a binding agreement with union members in 155 countries, said, “They are outsourcing a good that Ahmed Razu, labor minister, assured gar- unions and labor groups to stop these “The time for discussion about this is normally in their home countries has a ment industry leaders that compliance unsafe working conditions from existing. over. Corporations have to respect genu- very strong legal requirements in terms was on the rise. Tragedy after tragedy shows that corpo- ine safety standards and indeed the gov- of safety,” she said. “So for them to sell “We have begun inspection of all the rate-controlled monitoring is completely ernment must take responsibility for its something because it’s cheaper from a garments factories to ensure compliance inadequate,” said Tessel Pauli, a CCC constituents’ needs.” country where those requirements might for the workers,” he said. “We want to staffer. “Right now the families of the Helena Molin Valdés, deputy direc- be less firm is an irresponsible act.” ensure a better working environment. If victims are grieving and the community tor of the United Nations International Kevin Burke, president and chief ex- any of the garment factories are found is in shock. But they, and the hundreds Strategy for Disaster Reduction, told ecutive officer of the American Apparel noncompliant, it will be closed.” injured in the collapse, are without in- WWD, “There is a strong ethical compo- & Footwear Association, said, “Worker The government has announced a day come and without support. Immediate re- nent here for companies.” safety is a top priority for the U.S. ap- of mourning on Thursday, and the nation- lief and long-term compensation must be Valdés, who recently visited parel and footwear industry because al flag will fly at half-mast in solidarity provided by the brands who were sourc- Bangladesh on a mission, said the coun- we believe that all workers in the global with the dead and the injured. ing from these factories, and responsibil- try has good building codes, planners apparel and footwear industry should — WITH CONTRIBUTIONS FROM ity taken for their lack of action to pre- and architects, but noted, “The problem be treated with fairness and respect. ARTHUR FRIEDMAN, JOHN ZAROCOSTAS vent this happening.” is the enforcement and the implemen- Creating a safe work environment is es- AND KRISTI ELLIS China Haidian to Buy Montres Corum Penney’s Preps to Raise Cash J.C. PENNEY CO. INC. is prepped to raise more money Haute Horlogerie by reinforcing its other activities and as chief executive officer Myron “Mike” Ullman 3rd By EVAN CLARK open for Corum new prospects for development and seeks to stabilize the business. strengthen the positioning of its brand worldwide.” The retailer filed a shelf registration statement THE CHINESE have arrived in the world of Swiss lux- Corum chief executive officer Antonio Calce will with the Securities and Exchange Commission late ury watches. stay with the business. Wednesday that lays the groundwork for it to poten- China Haidian Holdings Ltd. inked a deal to buy the Hon Kwok Lung, chairman of China Haidian’s ex- tially sell “common stock, preferred stock, deposi- La Chaux-de-Fonds-based Montres Corum, which sells ecutive committee said, “The brand has done a remark- tory shares, debt securities, guarantees of JCP debt watches for more than 25,000 Swiss Francs, or $26,628 able job under the leadership of Mr. Calce and was securities, warrants, stock purchase contracts and at current exchange. able to reposition itself as one of the major players in stock purchase units.” Penney’s prior shelf registra- High-end Western companies have been keenly Haute Horlogerie.” tion recently expired. focused on tapping into the growing Chinese luxury The deal is a significant step for a Chinese producer. The company, which this month drew down $850 market, but so far there have been few instances of “For many years, the Chinese were not big acquirers million of its credit facility, is working with a host of Chinese producers snatching up brands for themselves. of brands,” said Elsa Berry, cofounder and managing financial advisers and exploring numerous ways to Corum has sales of about 80 million Swiss francs, or director of Vendôme, which advised Corum on the deal. raise money. $85.2 million, and is one of the last freestanding Swiss But now that the market is heating up, many Penney’s could tap into the value tied to its real es- luxury watch names. Western brands that previously licensed their busi- tate as it seeks to acquire funds. The company owns The cash-and-stock deal values Corum and its debts nesses overseas are choosing to go it alone and reap about 430 of its 1,100 doors as well as its massive head- at 86 million Swiss francs, or $91.6 million at current the rewards. quarters in Plano, Tex. exchange, with some additional performance payments “Americans and Europeans interested in Chinese Money raised from the sale of any securities will possible depending on how the business develops. development took back their brands, so many compa- go toward general corporate purposes. Penney’s lost Once the deal is closed, the Michael Wunderman Trust, nies are losing their bread and butter and little by little nearly $1 billion last year and sales fell 25 percent as which controlled 90 percent of Corum’s stock, will own I think are going to become brand acquirers, primarily former ceo Ron Johnson sought to remake the firm. 10 percent of China Haidian, which trades on the Hong to drive sales in China,” Berry said. The company is said to have burned through more Kong Stock Exchange. China Haidian owns the Ebohr and Rossini watch than $1 billion in cash in the first quarter as it caught “This strategic agreement fulfills the long-term vi- brands, which it noted are two of the top-four domestic up on vendor payments and rolled out new Joe Fresh sion of both partners for the continued development watch brands in China. It also owns the Swiss brand and home goods shops. and growth of the Corum brand,” Corum said. “It will Eterna, which has a license to manufacturer and dis- Shares of Penney’s slipped 1.7 percent to $15.19 allow China Haidian to anchor its position in the Swiss tribute Porsche Design watches. Wednesday. — E.C.

ZDELQGG 30  WWD THURSDAY, APRIL 25, 2013 5 WWD.COM

the brands... and we sold or closed half a dozen different brands. When Barington Jones to Streamline Operations came calling, we acted a little quicker. For us a big difference was a portfolio {Continued from page one} plans to consolidate the design functions with the benefit to fiscal 2013 expected to review. For us, it was focusing on Calvin revealed in the fourth quarter of 2012. so it becomes “more brand-centric and total about $11 million. Savings will be gen- Klein.” He said for Jones, they are be- He said that once the stores are shut- doesn’t include separate design teams for erated through the reduction of the work- coming more of a footwear company and tered by mid-2014, it will result in a every component of the line.” Rather than force, as well as other selling, general and have some good brands such as Nine smaller and more productive chain of do- operate in silos, which he said is not as ef- administrative expenses reflecting Jones’ West, Stuart Weitzman and Kurt Geiger. mestic units, with outlet stores account- ficient, they will try to work across the com- smaller U.S. retail footprint and more Jones plans to release first-quarter ing for a substantially higher percentage pany to get more consistent color palettes streamlined operations. The company said earnings on May 1. It expects to report of the overall retail portfolio. and styling so the collections work better it will incur costs of about $40 million to $60 2013 first-quarter adjusted earnings After the closings, he said, the company together on the selling floor. He called million over the next 15 months to achieve per share of about 15 cents, below the will end up with 380 Nine West stores and George Sharp, executive vice the plan. Those costs include 26 cents analysts estimated, compared 45 Stuart Weitzman units. Of the 425 remain- president of design at Jones, “an severance, store closures and with 2012 first-quarter adjusted EPS of ing, 330 will be outlets for such labels as outstanding talent.” noncash asset write-downs of 31 cents. Included in the results will be Jones New York, Nine West and Easy Spirit. Card said he seeks to reduce AQUINO about $6 million. charges of about 5 cents a share related

“Outlets have been a good, solid part some of the overlap and redun- JOHN Janet J. Kloppenburg, an to changes in foreign currency exchange. of the business, particularly when we get dancies that the previous struc- BY analyst with JJK Research, The company expects to report 2014 Jones New York product back on track. ture created over the years. said about Wednesday’s ac- first-quarter adjusted and generally accept- That will be a good contributor profit- This streamlining will also fil- PHOTO tions, “I would characterize it ed accounting principle revenues of about wise,” said Card. ter into production and some of as a first step. The Jones retail $1 billion, versus 2012 first-quarter adjusted Last fall the company experimented the other support groups that business has been underper- and GAAP revenues of $936 million. with several new Nine West concepts, service the wholesale business. forming and disappointing for “First-quarter revenues were in line such as Nine West’s Vintage America As reported, Stefani quite some time. I think the with our expectations, with the exception Collection boutique, which opened in Greenfield stepped down last Wes R. business clearly needed to be of our sportswear business and retail chan- Manhattan’s SoHo area, and there were week as chief creative officer Card restructured, and I think 170 nel, which remained challenged and highly plans to roll out the concept worldwide. and became global creative con- stores is probably the begin- promotional. This resulted in a higher than That concept isn’t going forward, al- sultant to Jones, after a rocky 17 ning. After a review, there will anticipated level of markdowns during the though the Vintage America label will months in the job. be an additional loss of stores. They have to quarter for our wholesale customers and remain. The World According to Pumps Looking toward the second half of the rethink the size of their stores. Their signa- deeper promotions required in our own re- store, which opened on Lexington year, Card said, “In terms of sportswear, ture business continues to be very troubled. tail doors,” explained Card. Avenue, will keep its wall of pumps, but the business right now is not good overall, For the fall season, they lowered prices and Asked if he’s considering selling some as a concept it’s not being rolled out. us included. We had some branding is- they’ve returned to more traditional styling. of the Jones divisions, Card said, “We’ve “What we’ll end up with is a chain of sues and product issues. We dialed up the It should be a positive for the Jones brand.” said many times that we consider di- Nine West stores that really showcase the fashion quotient on the Jones line too ag- As far as selling off any of the businesses, vesting noncore brands or nonstrategic brand and help overall with brand manage- gressively, but overall, the product is right she said they may have to sell off a brand or brands under the right circumstances. ment. There will be more of the traditional back to the DNA of the brand, the pricing two. “They have to look at the return of each We don’t comment beyond that. We don’t Nine West stores. We experimented with has been adjusted and the styling is great. of their business segments and try to build comment on merger and acquisition ac- some of those, but we believe if we have re- There’s less fashion, more basics. We up the productivity and the profitability. It’s tivity. It’s too disruptive. ally polished, great Nine West stores in every honed the fashion this spring.” He said been a long time,” said Kloppenburg. “Our shareholders are pleased that major city, we can support the Nine West the company feels confident that it will Joe Gromek, former president and ceo we’re taking more aggressive action on brand image better that way,” said Card. have an improved performance this fall. of Warnaco Group Inc., which Barington retail, and taking some costs out of whole- Furthermore, Jones plans to streamline “We’re really right on track,” said Card. also had invested in, said, “I think that sale, and it demonstrates we’re commit- the wholesale operation, including consoli- According to Card, these cost-cutting Jones and Wes Card are doing all the ted to improving profitability and enhanc- dating certain production, design and sell- moves are expected to generate some $40 right things. Moving away from unprof- ing cash flow,” he said. ing divisions, as well as distribution and million in annualized pretax savings and itable stores makes sense. At Warnaco, Jones’ stock closed at 13.97, up 2.7 per- supply chain facilities. Card said Jones reduction of operating losses by mid-2014, we underwent a portfolio review of all cent on Wednesday. Kering Takes Majority Stake in Pomellato was revealed after months of specula- and Chinese fine jewelry maker Qeelin, By LUISA ZARGANI tion. Kering has signed an agreement Swiss watch brands Girard-Perregaux with RA.MO SpA, which, in addition to and Jean Richard, as well as Gucci, MILAN — Global expansion, with a focus Pomellato includes the more accessible Balenciaga, Bottega Veneta, Saint on the U.S. and the Pacific region; brand Dodo label, launched in 1995. Duplaix Laurent and Sergio Rossi, among others. extensions, and reaching out to male con- said serious discussions with Pomellato Asked about the possibility of sumers are among the top priorities for began at the end of 2012. With this acqui- Pomellato producing jewelry for other Pomellato following the deal to sell a ma- sition, Kering is extending and reinforc- Kering brands, Morante said the subject jority stake to Kering, formerly called PPR. ing its portfolio of luxury brands in the has not been approached yet. Duplaix re- A bracelet from Pomellato. “Pomellato is one of the few brands that high-growth jewelry market. iterated that there was “no overlap at all, has remained mono-thematic for many Duplaix declined to provide financial as Pomellato’s design is more contempo- and confident” that with “a clear strategy” years, with a focus on jewelry, compared details of the transaction or the size of rary than Boucheron’s French high jew- and with the help of Kering’s brand man- with its competitors,” said the company’s the stake Kering has purchased. The deal elry. Qeelin has a Chinese heritage and a agement, retail and media buy support, chief executive officer, Andrea Morante, a is “in line with transaction multiples in strong presence in Asia, while it is not sig- Pomellato’s “excellent potential will be fully high-profile entrepreneur-cum-investment the jewelry industry,” he said. nificant in Europe. You cannot compare it developed, while preserving its identity.” banker, who remains a minority sharehold- Asked whether Kering paid the same with Pomellato, which is more established Morante echoed the sentiment, map- er and will continue to head the firm. multiples for Pomellato that Swatch did and has an Italian heritage and style.” ping out expansion in the U.S., a “seri- Morante said there have been past at- for Harry Winston — $1 billion, or 37 Morante said that Rabolini realized ously strategic market for Pomellato” tempts to diversify the brand’s business, times the latter’s earnings before inter- he needed funds to expand the company and one that currently accounts for 12 showing his own 25-year-old leather- est and taxes, according to analysts — and turn the Pomellato labels into global percent of sales, up from 6 percent in strapped Pomellato watch as an exam- Duplaix responded: “Far from that.” brands. Asked about the reasons for shelv- 2009, as well as building the Pacific area, ple, “but the company was not entirely In 2012, Pomellato group sales reached ing projects to publicly list Pomellato, re- “where we are not as active or present as convinced about it. Now brand extension 146 million euros, or $186.9 million at av- vealed last year, Morante confirmed the we should have been.” has become one of our priorities, but it erage exchange, up from 102 million euros company “was getting organized for an IPO Italy accounts for 43 percent of sales, should make sense for us.” in 2009. Earnings before interest, taxes, while keeping an eye on strategic options.” followed by Europe, representing 38 The first step, and “natural evolution,” depreciation and amortization totaled 19.8 However, the executive felt “pressure on percent, then the U.S. and the Pacific is the launch in September of a fragrance million euros, or $25.3 million. consolidation” after the sale of U.S. luxury area (5 percent). Under the Pacific re- produced by ICR-ITF. Pomellato creative Sources said the price was set at jeweler Harry Winston to the Swatch Group gion, Duplaix included China, Japan and director Sergio Silvestris also is in the about 14 to 15 times the company’s Ltd. in January. “Rabolini, who is almost 79 Southeast Asia. Morante said boutiques process of designing a watch, which could EBITDA, indicating that Kering paid be- and who does not have family continuity, recently opened in Singapore and Hong lead to a new male customer, an important tween 277 million and 297 million euros, realized that he would have had to meet Kong have been showing “very encourag- consumer segment in Asia. A partner in or $360.8 million and $387 million at cur- certain requirements and obligations with ing signs.” the watch venture has not been selected. rent exchange, to acquire the company. a publicly listed company and would have In the U.S., there are already direct- “We are interested in intensifying our Kering took on Pomellato’s debt of 60 simply postponed the sale,” with the risk of ly operated stores in New York, Miami, relationship with men. A year ago, we pub- million euros, or $77.4 million, at the end forfeiting an opportunity, said Morante. Chicago and Beverly Hills, in addition to lished an ad in [Italy’s sports daily news- of last year. Stefano Corneliani, senior analyst at a Dodo store in New York. paper] La Gazzetta dello Sport to convince Pino Rabolini will no longer own shares Intermonte SMI, said Pomellato does not In 2009, monobrand stores accounted men to buy [Pomellato jewelry for women]. in the company he founded in 1967, while appear to have been overpriced, at 14 for 37 percent of sales. Now they repre- A long time ago, we produced cuff links the Damiani Group has retained its 18 times its EBITDA, but said he “wouldn’t sent 46 percent of revenues. and money clips, but watches are the real percent stake. “No discussions have been be surprised” if Kering had paid more “Wholesale in Italy stood at 42 per- jewelry item for men,” explained Morante. initiated with Damiani. We are happy with than this amount. cent, now at 28 percent, while interna- One of the main objectives is to build the majority stake, it’s not a priority and Duplaix said Kering plans to expand tional wholesale was 21 percent, and now the company outside Italy — currently we will have time,” said Duplaix of possi- its hard luxury division given the growth 26 percent,” said Morante. its main market — as clearly expressed bly buying out Damiani’s holding. potential the category offers and said There are 86 boutiques around the by both Morante and Jean-Marc Duplaix, He said Pomellato “sits well” and is “there are other opportunities,” but said world: 45 are Pomellato units and 41 are chief financial officer of Kering, dur- “highly complementary” to the other the company is not in talks with other po- Dodo venues. ing a conference call Wednesday to dis- brands under the Kering umbrella, such tential target brands. There are around 600 points of distri- cuss details of the acquisition, which as, in hard luxury, jeweler Boucheron Duplaix said that he was “very proud bution globally. 6 WWD THURSDAY, APRIL 25, 2013

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8 WWD THURSDAY, APRIL 25, 2013 WWD.COM LIVE FROM THE MET: The Giftlab Gears Up for U.S. Launch MEMO PAD red-carpet arrivals at the tors include Nobel TMT Ventures Ltd., and a number Costume Institute benefit are a lot like the Oscars, By SAMANTHA CONTI of strategic, international, high-net-worth individuals except perhaps with better fashion. Proof of that will who Busquets declined to identify. hopefully come at the May 6 gala with the return of LONDON — Internet investor Carmen Busquets, who Busquets, who remains Giftlab’s controlling share- the live-stream from The Metropolitan Museum of helped to launch Net-a-porter, and founded the Web holder, said the aim is to build the site into a $500 mil- Art, hosted this year by model Hilary Rhoda and Vogue’s site Couturelab, has been quietly working on another lion company over the next 10 years. “We’re starting William Norwich. Available at metmuseum.org/metgala luxury e-commerce site, which will launch in the U.S. small, but we’re thinking big. Net-a-porter was suc- as well as Vogue.com, Samsung.com/galaxys4/punk and in June. cessful because we were patient, and we didn’t grow Modaoperandi.com (this year’s sponsor), the coverage Giftlab, which had a soft launch in the U.K. in too quickly.” will feature interviews with cochairs Rooney Mara, Lauren November, is aimed at generous souls with deep The company will also unveil plans for a U.S. office Santo Domingo, Riccardo Tisci and Anna Wintour as well pockets and interests ranging from fashion to jew- set to open June, and plans to ship to local custom- as some of the arriving celebrities, and segments on elry, design, literature and food. ers directly from the U.S. It will launch a marketing the “Punk: Chaos to Couture” exhibition. Rhoda and Prices currently range from about 12 pounds, or campaign in September, and has begun a search for a Norwich’s questions will include some submitted on $18.36, for a box of eight Cocomaya chocolates, to chief executive officer and team. Facebook and Twitter before via #metquestions. Vogue. more than 37,000 pounds, or $56,600, for a one-off opal Giftlab ships to 158 countries within 72 hours, and com will also feature a preview of the benefit, and the and diamond brooch by Vicente Gracia. In between, Busquets said that about 30 percent of the site’s busi- night’s musical performance will be posted on the site there are Moleskine notebooks, jewels by Pippa ness already comes from the U.S. The average spend May 10. — MARC KARIMZADEH Small, Bottega Veneta candles, Alexander McQueen per basket is $250, and 60 percent of all sales come box clutches, cookbooks for children, travel guides from return customers. Although Busquets declined DONATELLA ON A LADY: Donatella Versace opened up about and bunny hair clips by Katie Hillier. to give any revenue figures, she said sales have tri- Lady Gaga in an article she wrote for the March issue of The site features sections curated by “tastemak- pled since the November launch. Italian fashion magazine Amica. ers” such as jeweler Shaun Leane, designers L’Wren Gavin Saunders, previously finance director at Theo “I’m very proud to say that Lady Gaga is a friend of Scott and Christian Louboutin, and the perfumer Fennell, has recently joined as chief financial officer of mine,” wrote Versace, remembering her first meeting Kilian Hennessy. Shoppers stumped by what to the company, while Tony Florence, general partner at with the American pop star who, for “The Edge of Glory” choose can also shop by star sign. NEA, has been named a non-executive director. NEA music video two years ago, decided to wear vintage “The site is not about collecting or accumulat- has invested in a number of other luxury e-commerce Versace dresses. ing — it’s about gifting, an act that people should be businesses including Gilt Groupe and Moda Operandi. “She was determined, she already knew what she proud of,” said Busquets. “We want it to be fun, fast, Busquets said that Giftlab was born out of wanted: to go straight to the heart of the maison and easy — and with really special service.” Alasdhair Couturelab, and she envisions the two sites comple- show those clothes to a new generation, to all her Willis, who runs creative agencies in London and is menting each other in the future. fashion-lover fans,” revealed Versace, referring to the married to Stella McCartney, is part of the creative “We were noticing that for every three purchases brand’s signature bondage-inspired dresses designed team working on the look and feel of the site. on Couturelab, one was a gift. Couturelab is expen- by her brother, the late Gianni Versace. “I’m sure that, if Sojin Lee, formerly head of retail and buying at sive, craftsmanship is expensive, and I wanted to Gianni were still alive, he would have been a huge fan of Net-a-porter and an Internet entrepreneur in her make a stand-alone company and brand that was hers.” own right, is overseeing all of the buying and sourc- more commercial, and to keep things clear for cus- Versace also praised Lady Gaga’s independent style, ing for the site. Lee also works with Busquets on tomers,” she said. her professional attitude and her ability to establish a Couturelab, an e-commerce site that sells one-off As of September, Busquets said that most merchan- direct, powerful relationship with her fans. or limited-edition high-end items made by artisans dise costing $1,000 and under will be sold on Giftlab, “I’m very happy she is part of the Versace ‘family,’” and sourced from around the world. while Couturelab will offer items that cost more than concluded Versace, who, last year, during the “Born This Today, Giftlab will reveal that it has banked $5 mil- $1,000. Going forward, Giftlab plans to offer experi- Way” tour’s Milanese date, received Lady Gaga’s thanks lion in its first round of fund-raising. NEA, the U.S. ences such as cooking classes, lectures, massages and from the stage for her “style suggestions, for the clothes venture capital firm, is the lead investor. Other inves- picnics in the park. and for the friendship.” — ALESSANDRA TURRA

SURPRISE GUEST: Rita Ora has a fan in Calvin Klein. The brand’s watch and jewelry division will host a performance by the British singer- in refurbishing songwriter Friday night at a special event at Dreispitzhalle, an and expanding industrial event space in Switzerland, during Baselworld 2013. Ora, its retail network Finazzo Trial Nears End who recently performed at a Calvin Klein Jeans event in London, has FASHION SCOOPS in the country. also appeared in a CK One jeans, underwear and fragrance campaign. Specifically, he NEW YORK — Closing arguments were heard Wednesday in the The fashion hous plans to preview its rebranded watch and jewelry said new Saint criminal trial of Christopher Finazzo. line — which underwent a name and logo change from ck Calvin Klein BOYLSTON REOPENS: While a few stores remain Laurent and Balenciaga stores will open in The former chief merchandising officer of Aéropostale is Watches & Jewelry to simply Calvin Klein Watches & Jewelry under the closed due to damage from last week’s Boston Tokyo early next year. A building currently charged with 16 counts of mail and wire fraud, as well as con- creative direction of Ulrich Grimm — for the first time globally. — KRISTI Marathon bombings, for the most part Boylston under construction in the Omotesando-Aoyama spiracy, in an alleged multimillion dollar kickback scheme that GARCED Street is getting back to business. Lord & Taylor, area near the iconic Prada store will house both involved a vendor — South Bay Apparel — to the retailer. Eastern Mountain Sports and Marlo Marketing stores. Neither brand has a prominent retail Assistant U.S. Attorney John Nowak opened closing arguments are among the fashion-related businesses that presence in the neighborhood at the moment. with the statement, “When [Finazzo] said, ‘I never profited from reopened Wednesday. Marathon Sports, the Pinault also said Kering is considering anything from South Bay,’ he was lying.” site of the first explosion, and The Tannery buying a building somewhere in Tokyo — he Nowak told jurors that even when Finazzo was being fired, “he STOP HERE!!!! remain shuttered while repairs are being would not specify where — to expand some continued to lie.” made. Pedestrians are now allowed to walk all of the brands in its portfolio. Kering’s stable Jurors heard a replay of segments of the exit interview with along Boylston Street, Mayor Thomas Menino has includes Gucci, Bottega Veneta, Puma, Brioni, Finazzo when he was being fired from his job. BEHIND THE VELVET ROPES: Decades after Richie Notar instituted free parking on the street through the Stella McCartney and Alexander McQueen. Nowak touched upon the key points of the government’s case, not- learned the ropes as a Studio 54 busboy, he is still working the fashion weekend and the subway has resumed making “It’s not a growing market for sure, but ing that, through orders Finazzo placed with South Bay, the retailer crowd. When his old boss Ian Schrager rang him up to throw an stops at Copley. considering the size of the market, it’s still and paid more than $350 million, while the former chief merchandising impromptu 20-person dinner party Saturday at Notar’s new swanky Marlo Fogelman, founder of Marlo Marketing, will remain the number-three market in the officer received $25 million in his share of the South Bay profits. eatery Harlow in New York, Notar was at the ready. The Nobu is looking into the prospect of having a block world for many, many more years,” he said of He also spoke of testimony presented regarding Finazzo’s con- cofounder even trekked to the flower district for the peonies Schrager party to help the hotels, restaurants and stores Japan. “If you want to be good here, you cannot trol over orders for graphic T-shirts, which were placed with South requested. Tables were shuffled, candelabras with 16-inch candles affected by the blasts. While there is talk of a wait for the market to grow. You need to be Bay, and why Finazzo was annoyed when questioned by employ- were found and staffers were repeatedly read the riot act. “All day I Back Bay Association-led initiative to try to better than the others. So it’s a very nice place ees at Aéropostale: “When you’re getting the kickbacks, ladies and kept saying to them, ‘Do you know how important this is to me?’ Notar rev up sales, the group is now focused to test the real strengths of gentlemen, you don’t want anyone to interfere with the process.” said with a laugh. “When I went by the table, Ian said, ‘Richie used to on helping the displaced get up and your brand compared with The key elements in the government’s case are that Finazzo deprived be a busboy for me. I’m really proud of him.’ That meant a lot to me.” running again. a BBA spokeswoman The the others.” Aéropostale of money that could have gone elsewhere and that he also By chance, another Studio 54 regular, Stephen Burrows, was said. — ROSEMARY FEITELBERG Duchess of Pinault is currently interfered with Aéropostale’s ability to decide how to control their own at Harlow that night, as was Sirius Scott Greene. The East 56th Street Cambridge heading to Beijing for assets, such as whether to go with South Bay or somewhere else. address has age-old media ties, having been built by William Randolph UPBEAT ON JAPAN: François-Henri Pinault a series of business Defense counsel Robert Zito, in his closing statement, told Hearst, who gave it to his mistress, Marion Davies. “Half the people hosted a cocktail party in Tokyo meetings and to attend a jurors, “Christopher Finazzo must be acquitted of all charges who dine out aren’t there for the meal - they’re doing it because they’re Tuesday night to tout the name change state dinner. against him for the simple reason he committed no crime.” doing a deal,” Notar said. of his family’s company from PPR to — AMANDA KAISER He reminded jurors they were deciding a criminal case, noting Notar’s Studio know-how will be put to use this fall when Kering. A select group of top fashion that a party to a party-related transaction or a breach of an em- choosing uniforms, lighting and the decor for a new place in what used editors and retailers gathered at the ART TALK: The Duchess ployment agreement is still not a crime. He explained that those to be the Lenox Lounge. In honor of Studio 54’s 36th anniversary, Notar Puma House to meet with Pinault of Cambridge addressed are merely “minor violations” for which “there are civil remedies.” will reminisce about the club Friday night on the “Marc and Myra and the firm’s a crowd of 250 artists, While he reminded jurors that government witnesses spoke Show” on SiriusXM with Bob Colacello, Beau Ryan (whose godmother top managers in children and supporters about Finazzo controlling the graphic T business, Zito explained Japan. of The Art Room, a charity “that was his job. He was chief merchant — he was in the busi-

Diana Vreeland was a regular) and Steve Rubell’s former boyfriend GES A

On the for which she is patron, M ness of controlling things.” Bill Hamilton. Halston and Victor Hugo are among the characters they I recalled. “Victor Hugo would walk around in a jockstrap and he would sidelines of his at the National Portrait Zito said of the government’s case, “All we have here is sur- TION presentation, Gallery in London on A mise, speculation and innuendo.” Pinault spoke Wednesday night. The six- Assistant U.S. Attorney Winston Paes said, “The evidence

enthusiastically months-pregnant duchess ASSOCI against the defendant is overwhelming, and it’s overwhelming about the wore an Emilia Wickstead because of his own statements,” referring to the taped exit inter- importance of dress to speak at the view of Finazzo.

the Japanese gallery, where her first WIRE/PRESS Paes zeroed in on one point — that Finazzo received $20 million

market to Kering’s overall official portrait is currently hanging. PA in salary and $25 million in kickbacks from South Bay. “He was on

strategy. He said the The duchess, an art history graduate, met BY both sides of the deal,” Paes said. company’s portfolio of artists who have donated works for a silent The judge in the case will provide the jurors with her final brands is performing well auction to raise money for the charity, including PHOTO instructions on the law today, after which the case will be given to in Japan this year and Jenny Saville, Yinka Shonibare, Maggi Hambling and the jurors to begin their deliberations. François-Henri Pinault Kering is busy investing Marc Quinn. — JULIA NEEL DUCHESS — VICKI M. YOUNG

ZDELQGG 30  MAN OF THE WEEK PLUS: Mark Maidment Tom Bomb lays out his plans “Oblivion” star Tom Cruise seems oblivious for rejuvenating to some basic style tenets. Page MW2 Ben Sherman. Page MW2

April 25, 2013

® THEY ARE WEARING

Streets of New York A mix of streetwear, sportswear and athletic influences blend together in what has become a new urban fashion statement for youth in the city. For more on New York’s street style, see pages MW4 and MW5.

PHOTOS BY LEXIE MORELAND

CONTEMPORARY OUTLOOK time for contemporary men’s wear is now. percent of total Theory sales at this point, We’ve seen such incredible excitement and the business is growing at a slightly faster enthusiasm from retailers about the contem- pace than women’s, said Rosen. porary side of men’s wear in general and The new full-canvas suit program is cen- Theory Renews Focus on Men’s what we’re doing in particular,” Theory co- tral to building and upgrading Theory’s tai- founder and chief executive officer Andrew lored clothing business. The new models, Andrew Rosen boosts $100 million business with full- Rosen said in an interview from his expan- which are priced above the brand’s existing canvas suits, activewear line and European distribution. sive corner office at 38 Gansevoort Street half-canvas suits, were tested this spring here, five floors above the Theory flagship in with a small assortment and will become the by DAVID LIPKE Q The launch of a full-canvas tailored cloth- the Meatpacking District. “Our men’s busi- brand’s primary driver of tailored clothing ing program. ness has really been growing and we’re add- beginning this fall. NEW YORK — The men’s contemporary Q Introducing Theory men’s wear to the ing more of our own retail stores, as well as “In terms of the value and the construc- market is thriving at retail and Theory, a pio- European market. building out shops in department stores and tion and the quality, this is really best-in- neer in the category, is aiming to capitalize Q Increasing its denim offerings. really making a stronger mark and taking a class. We elevated it to be this guy’s staple on the trend. Q Creating a new active-inspired sublabel more important foothold in men’s globally.” suit at a price point that is the best value in The company, a unit of Japan’s Fast called Theory 38. Men’s sales at Theory now top $100 mil- the market,” said Andrew Berg, Theory’s vice Retailing Co. Ltd., is undertaking a number “We are [pleased] about what is going on lion a year, posting over 20 percent growth president of men’s merchandising and sales. of key men’s initiatives this year, including: in men’s wear in total and believe that the last year. While men’s is only about 15 to 18 {Continued on page MW6} MW2 WWD THURSDAY, APRIL 25, 2013 Men’s Week The Game Plan for Ben Sherman Mark Maidment by JEAN E. PALMIERI Kingdom and Europe improve.” ed its marketing and store design to reflect Maidment can remember when things the change. “Sometimes that can slow you MARK MAIDMENT just landed his dream were different at Ben Sherman. He’s been down,” he said, but results from the compa- job. Now comes the hard part. with the company for more than a decade ny’s five London stores are now improving. Last week, the U.K. native was elevated and was design director when Oxford pur- “You can feel the momentum building.” from creative director to chief executive of- chased it. And while it may be unorthodox Maidment drew parallels to both ficer of Ben Sherman, a brand he has been to hand the reins to a creative executive, Burberry and the Mini Cooper, other vener- wearing since he was a young man. “Ben Oxford’s current ceo and president, Thomas able British brands. He said Burberry has Sherman played a big role in my youth,” he C. Chubb 3rd, is confident he’s made the evolved beyond its trademark trenchcoat, as said. “I became addicted to the brand. I re- right move. has the car brand. The Mini Cooper, while ally want it to succeed. And I’m really thank- “Mark is a charismatic and charming guy still retaining a good reputation, had “lost ful to be in the driver’s seat. It’s a daunting who we think is a great choice to be ceo of its relevance,” he said. “It needed to be mod- task, but terribly exciting.” Ben Sherman,” he told WWD. “There are ernized and reinvented. That’s what we’re Maidment is facing an uphill battle, how- three key characteristics that we look for in doing with Ben Sherman.” ever. The venerable label, which is celebrat- all our leaders — integrity, intellect and en- He said the company wants to retain its ing its 50th anniversary this year, has been ergy — and Mark checks the box on all three. authoritative position in shirts but “move plagued by hard times over the past few years. In addition, Mark has been with the brand for it forward. We have to make it crystal clear The London-based men’s sportswear 11 years and has a profound understanding that we’ve modernized. We look very rel- brand traces its beginning to 1963, when of the brand, the target customer and what is evant; we’re not a retro brand.” its edgy shirts were embraced by the Mods needed to move the brand forward. Finally, in Immediately upon snagging the ceo post, in the U.K. Since then its sensibility has the new management structure, he is teamed Maidment created a mission statement for Maidment is now turning his attention to been inspired by British art, music, culture up with a couple of other gentlemen who Ben Sherman: to provide “clarity, consisten- the main collection, focusing on the price and style. In 2004 the label was purchased complement Mark’s background as a creative cy and stability.” structure and “rebalancing” the collection. for $146 million by Atlanta-based Oxford and marketing person very nicely. The other The brand is carried in more than 40 He said shirt prices have to stay below $100. Industries, which was seeking a complement two senior leaders are Lindsay Dunsmuir, countries, with wholesale representing When prices inched up over that mark, sales to its newly added Tommy Bahama business. who has responsibility for all finance and op- 65 percent of sales and retail the remain- fell off. And while shirts now represent 35 But after a brief honeymoon phase, the mar- erations, and Peter Lawley, who has responsi- ing 35 percent. The U.K. is still 40 percent percent of sales, that number is down sig- riage has been a rocky one. bility for licensing, sales and merchandising. of the business, followed by the U.S. with nificantly from the 95 percent they were 10 Although the first year under Oxford was Mark, Lindsay and Peter have immense re- 30 percent and the rest of the world with years ago. Instead, other categories have “a home run,” according to the company’s spect for each other and work extremely well 30 percent. Australia, in particular, has grown in importance, including sweaters, ceo at the time, J. Hicks Lanier, the brand together. With these three gentlemen in place, been a good market for the brand, as are particularly in cold-weather climates; out- has struggled since. we believe we have an excellent leadership Germany, France and Holland. The brand erwear — “We’ve built a big business off the Earlier this month, Oxford reported that team at Ben Sherman.” has a couple of shops-in-shop in Asia but parka,” he said. — graphic Ts with images in the fourth quarter of fiscal 2012, Ben Maidment said when he joined the brand, is currently talking to potential partners mined from the company’s archives, and Sherman’s sales dropped 4.8 percent, to more than 90 percent of Ben Sherman’s busi- to bring Ben Sherman to Japan and China. suits. “‘Mad Men’ was enormous for us,” he $24.7 million, and its operating loss grew ness was in shirts. But he believed it could “There’s big potential in those markets for said, noting that the Mod-era styling of Ben to $4.5 million from a loss of $254,000 in the expand into other categories, and during us,” he said. India and Brazil are also seen Sherman’s suits has connected with young 2011 quarter. For the year, sales fell 10.4 per- his tenure he has built it into a full lifestyle as ripe for expansion. The company also customers. “In our Carnaby Street store,” he cent to $81.9 million from $91.4 million the brand, adding pants, outerwear, suits and operates 38 stores globally, 15 of which are said, “suits can be 40 percent of our sales.” prior year. accessories. “Until around three or four company-owned. He said pant sales have been weak, al- In its 2012 annual report, Oxford said that years ago, it was more overtly British in a A few years ago, the brand branched out though he’s hopeful a new denim collection the “Ben Sherman lifestyle brand currently clichéd kind of way,” he said, “and while into a higher-priced offering called Plectrum launching for next season will help that cat- faces challenges due to our ongoing eleva- that had worked well in the past, we’ve gone by Ben Sherman, which Maidment said has egory rebound. tion of the distribution of the brand, the through a whole evolution and moderniza- been well-received. “It’s also helped us get “Going lifestyle is very hard,” he admit- sluggish economic conditions in the United tion program.” into stores we hadn’t been [in] in the past.” ted, “but I’m in a fortunate position because Kingdom and Europe and missteps in the Maidment admitted that in the begin- Plectrum represents around 20 percent of I know this brand inside and out and I have merchandise mix in our own retail stores in ning this may have confused some of Ben the business, and prices are about 40 percent a passion to see it succeed. We’ve put a lot of the second half of fiscal 2012. We believe that Sherman’s core customers, particularly in higher. In the main collection, for example, things in place to move this brand forward, in the long term, Ben Sherman will have op- the U.K., but the company has been work- most shirts retail for less than $100, while in and there’s no reason it can’t grow. portunities to improve its operating results ing to help them “relearn what to expect” Plectrum they average $140 to $150 and can “We’re celebrating our 50th year this if the elevation of the brand is successful from the brand. In addition to “refreshing” go up to $180 for a Made in England offering. year, and it’s all about building a future for and the economic conditions in the United the offering, Ben Sherman has also updat- With Plectrum finding its footing, the next 50 years.”

Man of Ippolita Enters Men’s Market THE WEEK TOM CRUISE: C- by RACHEL STRUGATZ toggle or hook closures that retail from $295 to $995, as well as chain-  THE IMPETUS BEHIND Ippolita’s link bracelets in varying sizes. Cuff The pu!y volume is not The light first men’s collection was to create links are a key component of the the most masculine Although his turtleneck is more jewelry for the guy who wasn’t being line, and styles range from a $325 look. We miss the “Top suited for a man of served by the current market. minimal silver wavy disc all the movie “Oblivion” Gun” haircut, which the cloth. It’s Ippolita chief executive officer way to $3,495 for a pair contain- was definitely one of his too precious. Joe Cavalcante and founder and ing the brand’s signature Lollipop is number one at highlights. Bring the designer Ippolita Rostagno — who gemstones — rutilated hematite, co- the box office, he look down both found the majority of men’s gnac citrine, brown shell or mother with a offerings either too chunky or too of pearl — set in 18-karat gold with seems extremely T-shirt. The suspiciously “rock ’n’ roll” — are looking to ad- pavé diamonds. oblivious to what plump cheekbones dress this void with the brand’s pre- Rostagno explained that men do the trick and miere 25-piece collection that hit connect with stories, and they’ve suits him in terms portray him as a very stores in mid-May. In addi- historically gravitated towards young 50-year-old. tion to its store that opened timepieces because there’s al- of fit and color. on Madison Avenue ways a story about the mech- His attempt to in New Yo r k last anisms. For her, this ele- September and ment of “design interest” channel Diane ippolita.com, the was integral when Although he’s not known line will be car- developing the col- Keaton with the for his broad shoulders, ried at Neiman lection, meaning the strongly built Light gray Marcus and that each piece tonal suit and shoulder of the jacket fits silk-blend suits Bergdorf Goodman. has some char- his frame well. “We are thinking acteristic worth turtleneck falls are extremely Ippolita a ‘Mad Men’ [feel], a investigating or unforgiving NT short and makes E cu! links. when it comes to cleaner look for men’s talking about. INM A jewelry and that really isn’t out “A detail some of

us miss his excess fabric and The sloppiness of the RT E there on the market. We saw the the pieces have is black di- they accentuate look continues with leather jacket wrinkles. ENT need for more tailored, sophisticat- amonds on the side so that they are

rolls of fabric and CS ed fine jewelry for men,” Cavalcante kind of hidden. It’s a little moment wrinkles everywhere days. told WWD. He noted that this was of discovery. Men want something but his face. Know your

USA/EMPI also the thinking that precipitated decorative, but not in your face. measurements and visit

ACA the original women’s and overall They appreciate that there are dia-

a tailor before hitting the B brand launch by Rostagno in 1999. monds, but you sort of have to look The traditional black lace-ups red carpet next time.

EGA/A Containing a mix of 18-karat gold and discover them. It feels more so-

are a good choice and the best P

A and sterling silver, prices range from phisticated.” part of the whole outfit. BY $195 for a hammered silver ring to Cavalcante projects that men’s $3,995 for a gold link bracelet. There will eventually comprise 10 percent PHOTO are thin leather wrap bracelets with of the overall business.

ZDDLQGG 30 

MW4 WWD THURSDAY, APRIL 25, 2013 Men’s Week

The Flight Club in Greenwich Village, Saturdays Surf NYC in SoHo and H.W. Carter and Sons in Brooklyn attract distinctly different kinds of fashionistas, but all have developed cultlike followings among New York City’s youth. Here are a few of the trendsetting shoppers who recently The stopped by the stores.

Cultist PHOTOS BY LEXIE MORELAND

Flight Club, outlined in yellow.

® THEY ARE WEARING Men’s Week WWD THURSDAY, APRIL 25, 2013 MW5

Saturdays Surf NYC, outlined in red.

H.W. Carter and Sons, outlined in blue. MW6 WWD THURSDAY, APRIL 25, 2013 Men’s Week THEORY BROADENS MEN’S STRATEGY {Continued from page MW1} for traveling but you don’t look like The suits are sold as separates, Fall looks a slob, you look hip.” with jackets at $645 to $675 and from Theory. Windbreakers in the Theory pants at $245 to $265, meaning a 38 line retail for $265, track pants customer can buy a full-canvas suit for $195, sweatshirts for $135 and for just less than $900. In tuxedo T- s h i r t s for $75. This fall and holi- styles, jackets are $695 and pants day the offering will expand to are $285. In comparison, the half- sweaters for $295 and puffer jack- canvas suit jackets Theory current- ets for $475. ly offers are $545, with the match- Harter said Bloomingdale’s has ing pants at $225. enjoyed “incredible” sell-throughs “Most suits at our price point so far with the Theory 38 launch. are a fused construction. This is “Theory is building a solid lifestyle full canvas and it’s loosely basted brand and building out everything by hand, so that the suit molds to that a guy needs in his wardrobe,” the shape of your body. The more he said. you wear it, the better it looks,” Rosen said fit has always been said Ben Stubbington, director of a hallmark of Theory and central men’s design at Theory. to its growth. “The fit and the feel The full-canvas suits feature all of a garment are what I started the Italian fabrics, more hand stitching business with 15 years ago and we on the interiors and a slightly high- continue that,” said Rosen. “For er button stance and a raised notch bottoms, everyone comes to us for lapel, for a more modern look. The those, they love the fit. In our sweat- suit jacket comes in the Wellar fit, ers and polo shirts and T-shirts, we which is available in notch lapel, have the perfect cut on the shoul- peak lapel and double-breasted ders that’s very clean and sharp.” styles. The notch lapel model has Theory leases more than 30,000 both flap and patch pocket options. square feet at 416 West 13th Street The pants for each jacket are in — about a block away from its head- the Marlo fit, which is a core, slim quarters building — that houses straight leg silhouette. design studios and sample-making The full-canvas assortments facilities. “We make a pattern and are available in 14 suit fabrics — a 3-D garment here, so we have ranging from wool blends to 100 much more control over the fit. percent cashmeres — and two tux- We can scrutinize things in a way edo fabrics. you can’t when a factory is doing “We are really excited about the pattern for you,” explained the addition of this full-canvas col- lection,” said Kevin Harter, vice toms and tailored sport coats are London, in addition to women’s- global stores and wholesale distri- president of men’s fashion direc- the three biggest classifications for only concessions in European de- bution directly, apart from South tion at Bloomingdale’s, which car- Theory. Accessories, which com- partment stores. Korea, which is a license.) ries Theory in 27 of its 31 total men’s prise less than 5 percent of men’s In total, there are 240 Theory- In the U.S., Theory opened a doors. “We’ve had a lot of success sales via cold-weather items like branded retail locations world- store with a dedicated men’s sec- with Theory suits in general and the gloves, represent an area of future wide, counting both freestanding tion earlier this month on North full-canvas is a big plus that I think growth potential, said Rosen. stores and shops-in-shop in depart- Beverly Drive in Los Angeles. The will really resonate with contempo- This fall, Theory will open its ment stores. Including wholesale, company also recently renovated rary suit buyers. The contemporary first store in Europe that carries there are 800 Theory points of sale its existing Melrose Avenue store tailored market is a hot business men’s wear — a 2,700- square-foot, around the world. and moved men’s to the front of and Theory is a terrific suit for the dual-gender store in Paris. The The Theory men’s business is the space, providing a separate body-conscious, fashion customer.” shop will combine two buildings particularly strong in Japan. Last entrance for it. Theory now oper- Retailing its suits as separates at 10 Rue de Grenelle. Rosen said month, the company opened its ates 16 full-price stores in the U.S., has been a competitive selling opening more men’s retail loca- 40th Japanese men’s shop-in-shop eight of which carry men’s wear. point for Theory, said Denim is a category that Rosen. “When we has always been incorporat- Ben Stubbington and Andrew Berg are picking fabrics Andrew ed into Theory’s assortments and patterns we are Rosen and the brand is putting a choosing for versatil- “The men’s wear new emphasis on the catego- Stubbington. “It’s been that way ity. A guy can wear ry. “We created a destination from the beginning of the company. the jacket with jeans, in our stores in a different We have an extremely tight toler- if they want. And they industry for a way this season,” said Berg ance for any variance in the fit of a can buy just the jack- of the denim effort. “Coming finished product.” (The actual line et or just the pants. long time was into fall, we’ve developed a production of clothes is outsourced The men’s wear in- secondary fit in denim. We to third-party factories in Asia, the dustry for a long time set in its ways. have an opportunity to have U.S. and South America.) was set in its ways. our own point of view. Our In fiscal 2012, which ended in We are trying to ad- denim has stretch. It feels August, Theory generated record dress the modern We are trying authentic but with a more profits, according to Fast Retailing. way of dressing the contemporary point of view.” More recently, for the six months modern guy. I think to address the For fall, Theory is offer- ended in February, the Theory that’s important.” ing the Haydin straight leg business performed to plan but To support the modern way and Raffi skinny leg in five- profits decreased marginally due launch of the new pocket styles, in fabrics like to higher marketing and personnel suit program, Theory true indigo denim, black expenses in the U.S. will unveil this fall of dressing the denim and colored twill. While Theory is putting a con- a tailored clothing- Retail prices in denim range certed emphasis on its men’s busi- focused marketing modern guy.” from $225 to $295. ness, Rosen declined to make any THEORY OF campaign under Also new this year is the projections on sales increases or the theme “What performance-driven Theory target goals in the business. “My Suits You.” Shot by — ANDREW ROSEN, 38 label, which encompass- philosophy is a very simple one: I Peter Arnell, who THEORY es both workoutwear and believe that the better your cloth- has worked with the active-inspired streetwear. ing and the better you execute your ARNELL/COURTESY brand since fall 2012, The collection launched ex- clothing, the more business you’re

the imagery shows clusively at Theory stores, going to do. I don’t look at things PETER BY men wearing Theory tailored tions in Europe is part of Theory’s in the Fukuya department store theory.com and Bloomingdale’s specifically as trying to push the clothing in a variety of environ- strategic growth plans, but no fur- in Hiroshima. stores this spring. volume,” he explained. “The size

ments. “We didn’t really have a ther leases have been signed. In China, Theory sells men’s “It’s shorts that you can run in, of our business is dependent on OTHERS men’s campaign before,” said Berg. Similarly, Theory intends to wear in two of its own dual-gender as well as shorts you can just wear our ability to execute, both from a “The men’s business has grown up enter men’s wholesale distribu- shops in Shanghai and Beijing, on the street. It’s a sports design, design perspective and sales and

a lot here and we’re putting a lot of tion in Europe for spring 2014, with 10 other stores in that market but made for the urban environ- marketing perspective. I’m always ERICKSEN; energy behind it.” but those plans are still being selling only women’s. The company ment,” said Rosen. “There are a trying to work with our guys to About 25 percent of Theory’s fleshed out. Theory currently has partnered with Lane Crawford lot of performance fabrics and we push the integrity and the authen- KYLE BY men’s sales is in tailored clothing operates women’s stores on to introduce men’s wear in several have sweatpants that are a cool ticity of the Theory experience and 75 percent in sportswear and Rue Saint-Honoré in Paris and of the luxury retailer’s stores in shape and not your traditional vis-à-vis what we are trying to do,

other categories. Woven shirts, bot- on Marylebone High Street in China. (Theory operates all of its baggy sweatpants. It’s great stuff rather than the volume.” PORTRAITS Men’s Week WWD THURSDAY, APRIL 25, 2013 MW7 Miami Turns Its Attention to Men’s John Varvatos, Brioni, Dolce & Gabbana and others open or expand stores in the hot retail area.

by REBECCA KLEINMAN square feet in early April. Its bright coral retailing for $995 to $3,000, and court-sneaker The company is also scouting emerging sport jackets and cardigans pop against the classics from $495 to $575, will hit the floor. neighborhoods such as Brickell and the MIAMI — For a city whose homegrown TV sleek-meets-soft store design based on a Opening in June, Scoop’s second Miami Miami Design District for more doors and series inspired a nationwide men’s wear Los Angeles prototype. Muted silk panels of store and Etro’s relocation from the Village is considering the possibility of opening trend in the Eighties, Miami had fallen stitched diamonds that emphasize its made- of Merrick Park shopping center in Coral the city’s first Black Fleece concept. short in the category for decades. Retailers to-measure program, and ribbed walls and Gables to Bal Harbour Shops will offer men Tommy Bahama, Original Penguin and focused on their women’s business while displays of matte black wood soften bronze even greater selection. Hugo Boss are among 18 tenants in Dadeland embroidered dress shirts worn untucked frames, black glass and pale stone flooring. Malls across Miami also report a thriv- Mall’s 100,000-square-foot expansion slated with designer denim became the male “We’ve had nothing but consistent growth ing men’s business. Both Bloomingdale’s to open next month. Vincent Kavanagh, se- fashion uniform. But a growth spurt in the right into the first quarter of 2013,” said Todd units in the area have been busy adding de- nior vice president of retail for Hugo Boss, men’s market of late has resulted in a rash Barrato, Brioni’s chief executive officer for of new boutiques and store expansions ca- the Americas, attributing the bulk of the tering to this forgotten sector. business to local customers. “Where we used “My guy friends in Miami complained to be tourist-driven, we’re 50-50 now.” about not having sophisticated shopping, that Barrato said the store’s new setting more choices were limited to superdressy or super- effectively presents made-to-measure, the casual,” said John Varvatos, who launched his sales of which have increased by double dig- third Bowery NYC concept store on Lincoln its, as well as sunglasses, a new category that Road earlier this month. “We hope to fill the premiered last year, and small leather goods, better men’s void and bring dynamism to the a focus for new creative director Brendan area’s heavy concentration of clubwear.” Mullane. Priced at $85,000 apiece, zipper A frequent visitor to the city (it’s good blousons in colored crocodile with oversized to have a brother-in-law who owns the W cuffs also appeal to the highly international South Beach), the designer has the inside clientele of Brazilians and Russians. vantage point on lifestyle observation. As a “They really appreciate exclusives and result, the new store draws from the compa- exotic skins,” he said. ny’s trio of divisions — Collection, Star USA At Neiman Marcus Bal Harbour, the men’s and Converse by John Varvatos — for its designer area doubled in size in late 2011 climate-friendly knits, pastels and treated and offers Brioni, Gucci, Tom Ford, Stefano linens, as well as the brand’s leather jack- Ricci and other high-end labels. The store of- ets and burnished suede shirts. fers a pool of dress shirts and ties from mul- “I spent a great deal of time studying tiple brands, a contemporary area focused on

the local customer. I didn’t want to just denim and diffusion collections, and a tight PEREZ dial in the tourists,” said Varvatos, who shoe section with styles ranging from Lanvin

had a head start through his shop-in-shop oxfords to Gucci driving moccasins in an array ROBERT The Brioni store doubled at the Atrium boutique on nearby Collins of materials. The department occupies the en- BY Avenue. “Since that account isn’t on a heav- tire third level of the store, save for a café. in size earlier this month. ily trafficked shopping block, our store will “Our clients requested a broader selection PHOTO strengthen the brand regionally.” in a world completely dedicated to men with signer shops. The men’s department at the said relocating and expanding the original, Eschewing Miami’s cliché Art Deco new names and exclusives,” said men’s fashion Aventura Mall was renovated to introduce upscale Boss store opens up its former space decor, the avid vintage collector designed director Matthew Singer, pointing to the blend nearly a dozen brands such as Gucci, John for Hugo, a casual concept. He attributes the 2,200-square-foot space to feel historic, of foreign tourists and locals who own sec- Var vatos, Robert Graham, Polo Black Label consistent growth to the slim-dressing trend, using refurbished furniture mixed with ond and third homes in Miami. “We’ve really and Burberry over the past six months. At the brand’s suit heritage and fresh monthly custom fixtures such as a cash wrap resem- become the go-to destination for fashionable the Simon-owned Falls shopping center in shipments appreciated by Latinos. bling an old-fashioned pharmacy counter. male shoppers with brands like Alexander South Miami, Etiqueta Negra, a popular “Though we saw opportunity in the market, Passersby mainly notice the interior’s bril- McQueen, Balenciaga and Pierre Balmain.” men’s collection in Argentina, launched one we were slightly concerned about cannibaliza- liant red hue and massive black crystal After years of tucking its men’s wear in a of three U.S. boys’ shops-in-shop within the tion,” said Kavanagh, who recently oversaw chandelier that is reflected in the smoky back annex, Dolce & Gabbana recently built a Bloomingdale’s there. Props such as hand- the renovation of the nearby Boss boutique mirrored ceiling. As a nod to the street’s nu- second door with a straight shot from the mall’s made riding boots and a rare vintage auto at Village of Merrick Park. “But the Dadeland merous art galleries, a rotating exhibition in garden courtyard. The December expansion tell the story of the brand, whose polo con- store immediately surpassed our expectations, the store sells Rock Paper Photo’s limited- increased the size of the store to 5,000 square nection also comes through in its casual so we jumped at the chance to be in a more edition portraits of music icons. feet. Clearly defined by its thick frame of glossy shirts and sporty jerseys worn by the com- prominent location and add Hugo.” Var vatos believes the Miami area can ac- striped wood, the masculine lair features two pany’s team Ellerstina. And men will really seize the moment commodate other stores and expects to even- Murano glass chandeliers in the deepest shade Brooks Brothers has signed a 10-year when Hermès unveils the brand’s inaugural tually add a John Varvatos Lifestyle unit, the of violet, black glass walls and volcanic stone lease and will relocate its store in the Men’s Universe fashion show in the Miami brand’s more high-end concept, in the Miami floors. Garnet damask panels and tufted stools Falls to a better location this summer. Design District in late May. Design District “when it’s progressed a bit, demarcate the watch department. or Bal Harbour with its addition, in the next Other high-end brands are shining a couple of years,” he said. spotlight on men’s as well. Prior to relo- Bal Harbour Shops has emerged as a top cating to a new black marble prototype men’s destination. In 2012, Canali opened store designed by creative director Hedi its second Miami location there alongside Slimane in December, Saint Laurent had tenants such as Kiton, Brunello Cucinelli, only offered men’s accessories. But with Ermenegildo Zegna and Brooks Brothers. this summer’s expansion to 3,400 square For more career opportunities log on to WWDCareers.com. Brioni, whose original door opened in feet, Slimane’s full men’s collection, in- 2007, relocated and doubled its size to 2,000 cluding the initial foray into fine jewelry

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Top Trends in Women’s Watches China’s Changing Watch Dynamic The Latest With Girard-Perregaux and Rolex

Feature Presentation As the Baselworld international watch and jewelry showcase opens today, manufacturers are adapting to fluid market conditions and going after younger customers with highly technical watches loaded with features and complications. Visitors to the show, which runs through May 2, will find a new, larger facility, with more than 1,400 exhibitors showing in 1.52 million square feet of space.

Watches from Salvatore Ferragamo, Patek Philippe and Omega.

ZEELQGG 30  BASELWORLD HALL 1.2 BOOTH A23 SHINOLA.COM BASELWORLD HALL 1.2 BOOTH A23 SHINOLA.COM Ushering In a New Era at Baselworld

Executives attending the show discuss adapting to global expansion, Baselworld’s new hall. changing markets and a rising customer base. BY PAULINA SZMYDKE AND ALEXANDRA STEIGARD

AS THE WORLD’S major watch investing a total of 500 million Swiss brands are spreading out and diver- francs, or $535 million, into the design sifying their portfolios to adapt to of their new stands. volatile market conditions, Basel- “Brands such as Rolex, Patek world, the bellwether Swiss watch Philippe, Swatch Group, Chanel and and jewelry fair, is investing heavily in Swarovski have built two- to three- its own future. story-high booths,” said Ritter. “Hermès After eight years of plotting and even hired [conceptual architect] Toyo developing, the fair unveils its new look Ito to build its booth.” today. Set in an enlarged hall designed With the largest booth spanning by Herzog & de Meuron, the Swiss 17,500 square feet, the number of ex- architect team that gave London’s Tate hibitors decreased from 1,815 to 1,460. Modern its distinctive look, the fair The only major newcomer is Girard- boasts 1.52 million square feet, 6,300 Perregaux. “We went for quality instead tons of steel structure and 13 miles of of quantity,” said Ritter, noting that booth facades. It runs through May 2. this was in line with the global trend in ness prospects for 2013: “Some of our less — but better.” “We are entering into a new era,” said fashion, cars and furniture. exhibitors tell us they do 90 percent of With regard to Apple’s much- Baselworld’s director, Sylvie Ritter. “It’s This year, Baselworld will also offer their yearly turnover during the eight anticipated iWatch debut, he said: “It not just about having more exhibition guided tours for foreign press and fash- days of Basel.” remains a limited product; not even the space, but more quality. The new venue ion editors, as “more and more fashion The director is convinced the smartphone has a big enough display gives us the opportunity to revamp the brands are coming to Basel to present watchmakers will do even “better in to read all the information. There is show itself.” their models,” said Ritter. the future, because they are extremely also an aesthetic problem: Do you re- Having pumped 430 million Swiss Organizers are particularly keen on flexible and can adapt to difficult ally want to wear a machine strapped francs, or $460 million at current targeting Asian visitors. “It’s a very im- market conditions.” around your arm? We do not follow the exchange, into the new site, Ritter says portant market and they are usually not Flexibility is the new buzzword same goal.” the focus is on building long-term rela- insiders of watches and jewelry.” among global players. As signs of slow- Stephen Urquhart, chief executive tionships with the exhibitors, who are Ritter is upbeat about the busi- ing growth in the Chinese luxury retail officer of Omega, said: “China is still market have brands second-guessing the number-one market. It has been the omnipotence of the Far East, many for the past few years. And viewing Tissot’s T!Touch Solar watch. are spreading out to other regions, most the increase in Chinese traveling, notably the U.S., to reduce their de- which is when they purchase, we see pendency on the Chinese. (See related no downturn.” story, page 16.) But, said the executive, “we never “It’s important to diversify, and really had a positive story in the U.S.,” not be focused on one market,” said and so the brand has turned its eye to Jean-Daniel Pasche, president of the Americas. the Swiss Watch Federation. “The Having dramatically reduced the economic situation is not the same number of its retailers from 8,000 to everywhere. In Asia, we see a period 3,000 doors, Urquhart said, “We own of consolidation, with the perspective 28 corporate stores in the U.S., soon for China and Hong Kong flat for this to be 30 — not just in New York and year. But we had a positive evolution L.A., but in cities like Pittsburgh and in the U.S., which will continue this San Antonio. This is an important Tick, Tick, Tick… year, and there is nice growth in major penetration of the American market Fast facts and show stats at a glance. European markets.” and a tremendous boost, which we have Having lived through a record year in felt in sales and brand perception. It’s 2012, with Swiss watch exports reach- permanent advertising.” ing 21.4 billion Swiss francs compared Omega is set to grow by lower- to 19.3 billion in 2011, Pasche said: double-digit figures, said Urquhart, “Of course, we are aware that we won’t expressing guarded optimism. “Our reach the figures of last year, but we strongest price segment is $5,000 to are very confident. What’s interesting $10,000 retail. [With] 700,000 watch- is that our products remain attractive es a year, this means 2,000 people a day where the market is going through put between $5,000 and $10,000 on a crisis. We increased our exports to the counter. I’m always asked, ‘But will Spain by 17 percent last year,” he said young people continue to buy wrist- of the austerity-battered country. “It watches?’ I say, nobody spends $5,000 appears in times of crisis, people buy because he doesn’t have the time. It’s 4 WWD BASEL

ZE  DLQGG 30  like buying a piece of art, it’s not just a ity of our presence.” picture on the wall.” Thiébaud said what he is after is Among the latest trends, he cited “more space.” Sitting in the midprice Omega’s antimagnetic watch, resistant segment with a wide rage of items, find- to magnetic fields greater than 15,000 ing a good placement in multibrand gauss. “Basel is late this year and we stores can be a challenge, he explained. didn’t want to miss out on the year, so “To get the best of it, I need to show- it already sneaked out, but it’s going case a minimum of 80 items — 150 to be our main feature at the fair,” he would be even nicer,” he said. pointed out. “With 160 stores around the globe, The brand has also found a new alloy most via franchise, a few corporate, of rose gold, developed in-house. we are not interested in having one “Rose gold is especially popular in every city, but to be in [strategic] for men’s watches, but it loses color. places,” he said. Tissot’s latest addi- The new [one], called Sedna, will last tion came last month with a shop in decades,” he said. “We will showcase Moscow’s GUM. it prominently.” At Basel, Tissot, which logged an- Gary Cohen, ceo of Timex Group, other double-digit increase in sales in said the company “is taking advantage 2012, will introduce its T-Touch Solar, of the fashion trends” of the brands it billed to be the first touch-screen encompasses, notably Salvatore Fer- solar watch. ragamo and Versace. He says woven Chopard copresident Karl-Friedrich straps, shining PVC and leather are this Scheufele affirmed: “Competition has year’s focus, while the Versus line, with always been pretty fierce, but in the last its bolder color palette, has appealed to five or so years, it has become par- younger customers. ticularly greater, considering there are “We see lots of opportunities for Ver- some big groups fighting for a limited sace and Ferragamo, particularly in the amount of space in retail outlets. It’s Middle East,” said Cohen, adding that really on the distribution side that the “the U.S. is coming back” as well. “It’s competition is an issue for us.” been robust and we expect better.” Scheufele said because the company Overall, he expects “a very strong is independent and family owned, it year, driven by door expansion in must rely on its “strong relationships the U.S. and consumer growth in the with retailers,” but he added that those From top: Dior’s Chiffre Rouge A02 Chronograph; Louis Vuitton’s Tambour Middle East and Asia.” With regard retailers “prefer” working with them éVolution GMT steel; Tag Heuer’s Carrera Monaco Grand Prix Limited Edition to China, Cohen noted: “We are not over larger companies, which “tend to Chronograph, and Chanel’s J12 Chromatic Rétrograde Mystérieuse. a mature brand there. This still gives dictate some of the rules.” PHOTO BY FREDERIC BOYADJIAN; STYLED BY LAURENT FOLCHER LAURENT BY STYLED BOYADJIAN; FREDERIC BY PHOTO us opportunities.” He estimated that Chopard had about François Thiébaud, ceo of Tissot, 60 boutiques worldwide, or 140 includ- East. “The U.S. has picked up nicely for forward and perhaps younger consumer. Swatch Group’s second-best performing ing franchise and stand-alone stores. us last year. Over the last 10 years, we’ve Scheufele said ever since gold prices brand in terms of volume, said it would The brand is bringing four additions also expanded our distribution in South rose, Chopard has experienced a spike reduce the number of sales points to to Basel, all of which are sporty twists America and India,” Scheufele said. in sales: “We sold more gold watches in 14,000 from 16,000 by yearend. “There on its classic lines, meant to help the The executive added that some of the 2010 and 2011 than we sold in the three is no market in the world where Tissot brand serve growing markets such as new styles the brand is introducing at previous years.” is not, but we want to improve the qual- the U.S., South America and the Middle Basel will likely appeal to a more fashion- {Continued on page 8}

QReservations: +41-61-564-66-66; +41- booth at Baselworld. 61-564-66-99 65 square feet: Size of the smallest booth at Baselworld. Tick, Tick, Tick… QFuture dates: Fast facts and show stats at a glance. March 27 to April 3, 2014 609: Average price (in euros) of a Swiss March 19 to March 26, 2015 watch exported in 2011 ($1,068 at aver- Baselworld 2013 — The World Watch and QNumber of journalists: 3,300, from 70 age exchange rate in 2011). Jewellery Show countries QOrganizer: MCH Swiss Exhibition 75: Share of mechanical watches in per- QDates: April 25 to May 2 QExhibition space: 1.5 million square feet (Basel) Ltd. cent of total exports by value (versus 20 QLocation: Messe Basel/Basel Exhibition QBaselworld Village: An after-hours Web site: baselworld.com percent by volume). Center, Basel, Switzerland gathering place offering restaurants and E-mail: [email protected] 20: Percent increase of the average value QHours: Daily, 9 a.m. to 6 p.m.; bars and billed as “an international get- Facebook: facebook.com/baselworld of Swiss watches between 2006 and 2012. Thursday, May 2, 9 a.m. to 4 p.m. together in the heart of the city.” Weibo: weibo.com/baselworld 95: Percent of the Swiss watch production QHours: April 25 and May 1, 6 p.m. to 2 a.m. Twitter: twitter.com/baselworld to be exported. QNumber of visitors: 104,000, from 100 QLocation: Binningerstrasse 14, Basel 21.4 billion: Value of Swiss watch exports countries QRestaurants: Acqua Osteria 6 million: Number of business cards ex- in 2012 (in Swiss francs) ($22.9 billion at QNumber of exhibitors: 1,460, from 40 (acquabasilea.ch); Baracca Zermatt changed at Baselworld. average exchange).

countries (baraccazermatt.ch) 17,491 square feet: Size of the biggest SOURCES: BASELWORLD, DELOITTE

WWD BASEL 5

ZE  DLQGG 30  ADVERTISEMENT

THE NATIONAL JEWELRY INSTITUTE PRESENTS: BULGARI AT BASEL

A name synonymous with prestige, the house of Bulgari is raising the bar at Basel this year with three debuts that will redefi ne luxury watches.

A marriage of tradition and innova- tion, the Catene links two Bulgari icons: the watch and the chain. The celebrated dial with a cylindrical sec- tion of the watch, a cultured citation of classical architecture, is fused with the soft suppleness of the chain, among the most ancient motifs in jewellery and the most typical of Bul- gari designs. Its 18K pink gold bracelet boldly encircles the wrist twice. Ca- tene also comes in a semi-pavé ver- sion in which the various elements of the 18K pink gold bracelet are alter- nately set with a total of 60 brilliant- cut diamonds (2.50 carats). In both 1. Diagono Moon Phases: Case in 18K pink gold, in- versions, the bracelet is secured by an house crafted black & white champlevé dial, protected 18K pink gold triple folding clasp. by a scratchproof and glare-proofed sapphire crystal, hand-applied hour-markers. Black leather alligator strap fitted with a double-blade folding clasp in 18K Catene makes it possible to wear a pink gold; 2. Diagono 303: Steel case, 42 in diameter BB Catene: 18K pink gold 31 mm-diameter case, and pink watch as if it were a bracelet, with the and 11.90 mm thick, transparent back with sapphire gold crown set with a pink rubellite. 18K pink gold bracelet simplicity of true elegance. crystal. Alligator leather strap fitted with a double- set with 60 brilliant-cut diamonds in the semi-pavé version; blade folding clasp and safety fastening pink gold triple folding clasp. Mother-of-pearl dial set with 12 brilliant-cut diamonds black alligator leather strap, Bulgari Catene makes it possible to Roma will be issued in a strictly limit- wear a watch as if it were a ed and numbered 250-piece edition. With their multiple references point- bracelet, with the simplicity ing back to antiquity and to the es- of true eleganceance. sence of design, the subtleties of tra- ditional handcrafts, and ultramodern Bulgari Roma is a limited, numbered techniques, the two new Diagono series that expresses timeless moder- watches—the Moonphase and Calibro nity. As imperial as ever, it is still inher- 303—elevate the art of mechanical ently up-to-date and contemporary. watchmaking. Its rebirth celebrates almost four de- cades of innovation and modernity. The watches are contemporary ver- sions of the Diagono line created in Bulgari Roma: 18 kt pink gold case, 41 mm in diameter, A proprietary self-winding movement 1988, with its characteristic bezel en- Black alligator leather and 18K pink gold pin buckle. accentuates its excellence. Entirely in- graved with the brand’s double logo. house developed and produced, it is Their dials are created in Bulgari’s housed within an elegantly curved own workshops using the very old 18-carat pink gold case teamed with a champlevé technique.

A B R N Baselworld’s New Era l {Continued from page 5} As a family-owned, independent Trends in Time He added, “Over the past five years, company, “what remains challeng- we’ve also stepped up the number of ing for us is to follow demand with Women’s watches are headed in highly technical, bejeweled mechanical watches in our collec- production while keeping the highest and feature-loaded directions. BY HAIG SIMONIAN tion,” which is linked to stronger quality level.” He noted that “demand demand coming from the East, grows stronger in the complications ZURICH — Every year, shoals of eye- “Fashions in women’s watches come mainly from China, Singapore and segment for men and women, the catching new women’s watches are and go, but deeper trends do emerge,” Hong Kong — not Japan — and that ladies’ complications being the new- showcased at Baselworld. And, every said Marcus Margulies, owner of 15 percent of its mechanical watches est fast-growing demand segment for year, a few proceed to meet manu- Marcus, one of London’s best-known are now made in-house. our brand.” Stern will introduce 30 facturers’ expectations and become luxury watch stores. The brand produces 80,000 items new models at Baselworld. icons, while most slip from memory. Most conspicuous has been the in- annually, which includes quartz and Meanwhile, Movado group chair- But amid the flurry of activity at cursion of high-end jewelers, like Graff, automatic movements, and is aiming man and ceo Efraim Grinberg said, the world’s largest watch and jewelry offering women’s watches dripping to make 50 percent of its movements “Coming out of the 2009 recession, show, some trends stand out in the big with diamonds (and priced to match), in-house by 2015 or 2016. “All this we’ve focused on upping creativity and growing women’s watch market. and high-fashion brands, like Hermès is geared to increase our indepen- and design.” Few are better placed to identify and Chanel, diversifying from clothing dence,” he said. “We put out a strategy to grow our them than the retailers who have to and accessories into timepieces. While Hermès, which recently unveiled top line 10 percent a year. We will move the metal and take a broader the latter isn’t a new phenomenon, its Dressage Chrono collection, will do that through great innovation of view than a single brand. what is relatively recent is that fashion introduce its first in-house-made product,” said Grinberg, while admit- brands are investing seriously in pro- chronometer at Basel. The men’s ting that Movado’s prices on average duction themselves, making watches chronometer, which retails for have “gone up slightly.” with better mechanical movements $11,600, is made from steel, while for as opposed to turning to contract women, the house developed a classic manufacturers — and as such, are watch with an alligator strap that “Nobody spends being taken more seriously among the retails for $16,100 to $26,975. watchmaking establishment. Although the brand has designed $5,000 because “There have always been incredibly watches for 100 years, it never had all expensive jewelry watches. What’s the capabilities to manufacture time- he doesn’t have changed is the number now for sale,” pieces. That has changed following Chanel’s said Zurich retailer René Beyer. a string of recent strategic acquisi- the time.” Prèmiere “There are now many more customers tions of components producers, said model. demanding these products [who are] Luc Perramond, Hermès’ watch ceo. ! STEPHEN URQUHART, rich enough to afford more than one. Those acquisitions are supposed to OMEGA Every brand feels obliged to have one.” safeguard Hermès from being at the That’s not to denigrate the jewelry behest of watchmaker conglomerates With tourists shopping in different market. For whatever reason, sheer such as Richemont Group, Swatch markets and watches emerging more conspicuousness can draw buyers. Group and LVMH Moët Hennessy as “fashion accessories” than mere “Some people appreciate the artistry Louis Vuitton. collectors’ items, Grinberg is hopeful of enamelling, gem-setting or engrav- According to Perramond, the that Movado will be able to achieve ing. Others may simply like the fact watch segment is a major future its growth targets. that a watch set with diamonds driver of growth for the brand. It He said consumer demand for makes it more noticeable to every- generates about 5 percent of Hermès’ such materials as titanium, carbon one around them,” observed John business and could reach 10 percent, fiber, tungsten carbide and ceramic Simonian, owner of three upmarket but it will be a “long-term effort.” has grown and will likely remain stores in southern California [no rela- “We have a huge potential to grow,” in Movado’s collections “for a long tion to this reporter]. Perramond said, noting that in the time.” In order to attract a younger Meanwhile, high fashion brands last four years, the house has almost consumer, the group is also cycling in like Chanel and Hermès, once scorned tripled its watch business. more color. by established Swiss marques, have He said that in high-growth On Bulgari’s agenda for this year muscled into the market — and markets such as China and Southeast is revamping the look of its men’s proved their horological credentials. Asia consumers value the French assortment, said Guido Terreni, man- Chanel’s J12 range uses innovative brand’s “heritage,” but he noted that aging director of the watch business materials like ceramics, sometimes the U.S. market is extremely impor- unit. “And we will surely have an eye combined with titanium. Last Novem- tant to Hermès’ success. “We should on the hyper-luxury world with artis- ber, its Premiere Flying Tourbillon — not forget that the largest luxury tic ‘grandes complications,’” he said. incorporating one of the most techni- market in the world is the U.S.” The brand just introduced two cally challenging watch complications For Patek Philippe, the key motors Serpenti special editions, which — won the Ladies category in the “remain traditionally unchanged, interpret zodiac signs with ruby Grand Prix d’Horlogerie de Genève, a with the main market being Europe and diamond settings for Chinese respected watch prize. with 45 percent, Asia with 33 percent women, in an effort to be “more “It’s clear Chanel has become a and the U.S. with about 15 percent,” selective” and “not to push hard [into watchmaker with the same rigor and said ceo Thierry Stern. the region].” seriousness that one knows from its 8 WWD BASEL

ZE  DLQGG 30  A model from Breguet’s Reine de make it a bit smaller,” said Picciotto. Naples Breguet’s oval Reine de Naples col- line. lection, unveiled in 2002 and expanded progressively since, was the break- through, say many retailers. “This was something conceived from the outset as a woman’s watch. You need to think from the ground up,” said Picciotto. Other technically interesting models have followed, blurring for- mer distinctions between men’s and women’s models. “It’s really hard to call any watch a ‘man’s watch’ or a ‘woman’s watch’ any longer,” said Simonian. “Women have finally been taken seriously by the industry,” agreed Beyer, noting, for example, the development of self-winding automatic movements for the women’s market. “Before, women had to buy men’s-sized mechanical watches if they wanted features. Now, they are asking for, and getting, the same rights as men.” other activities,” said Laurent Picciotto, Patek Philippe’s Gemma model owner of Chronopassion in Paris. “And from its Gondolo collection is Beyer’s the couturiers have the advantage [of a benchmark. Launched to acclaim in broad and loyal customer base]. Some 2006 (though discontinued now), the Swiss watchmakers giggled at first. But Gemma marked new thinking at the A Hublot Jeans watch. they’re not laughing now.” classic brand by combining innovative Beyond the obvious entrance of design and a mechanical movement as jewelry and fashion brands, there are an alternative to quartz. brands should,” said Beyer. Not coin- observed Picciotto. significant, but more subtle, changes, “Patek is the brand that is now really cidentally, perhaps: Sandrine Stern, The search for variety involves inject- according to retailers. Most striking is handling ladies’ products in a way all Patek’s “First Lady” (as wife of the ing ever more fashion elements. the gradual emergence of watches for family-owned company’s chief execu- Hublot, the brand known for its women who have become more knowl- tive officer, Thierry Stern), has been “fusion” products harnessing uncon- edgeable and discerning about what highly influential in refreshing design ventional materials, like ceramics and goes on inside their timepieces. — and women’s watches in particular rubber, and mixing them with more “Frankly, there are two types of — since becoming creative director. traditional gold and platinum, has just clients: ladies who want to buy the lat- The arrival of more technical ele- presented its Jeans Collection. est product, based on advertising and ments means women’s watches have Only available for sale after Basel- whatever is trendiest today, and buyers inevitably grown in size to accommo- world, the pieces combine Hublot’s — perhaps with greater confidence — date the additional features — though who are less influenced by short-term there may have been a slight pullback fashions,” said Margulies. recently. Increased dimensions have “Women have Picciotto concurred there are given watchmakers more scope for now many more women “who innovative design, too. finally been taken understand and care” enough Van Cleef & Arpels has made to distinguish between a waves with its Poetic Complica- seriously by the pricey jewelry watch, possibly tions collection, unveiled in powered by a cheap quartz 2008 and expanded progres- industry.” movement, and a mechanical sively since, with techni- timepiece that might cost less cally impressive innards and ! RENE BEYER, but has much more crafts- striking, highly colored dials and BEYER JEWELLERS manship inside. designs illustrating the “story” Traditionally, consumers behind the watch. favoring the latter could either “They grasped that there were distinctive style with faded blue denim purchase a man’s watch — still many discerning women looking straps and dials and build on some done by many women today — or opt for mystery, for something different. already eye-catching women’s watches. for the restricted range of women’s Otherwise, the choice was limited to “Hublot has drawn women buyers mechanical models once available watches that were through its bold use of color,” said Mar- — usually scaled down versions of Van Cleef & either too masculine, gulies. “It’s the mix of color and materi- established men’s products. Arpels’ Lady or too obviously femi- als that makes for a very contemporary Arpels Ballerine “To put it simply, many manufactur- Enchantée Poetic nine — in the sense of watch. They’re the best thing I’ve seen ers would just take a man’s watch and complication. being gem-studded,” in women’s watches in years.” WWD BASEL 9

ZE  DLQGG 30  ADVERTISEMENT THE NATIONAL JEWELRY INSTITUTE PRESENTS: DIOR AT BASEL

Launched in 2011, The Dior VIII Grand Proposed as one single and unique Bal collection pays tribute to Chris- piece, each one of the Dior VIII Grand tian Dior’s appreciation for parties: a Bal Pièce Unique series competes for taste for the essential allied to the art beauty and femininity. Two matching of futility. collections of fi ve pieces each, the one in 38mm and the other in 33mm, Playing with the couture codes of the come in shaded tones of pepper- inside and outside of a garment, each mint, purple, yellow, orangey pink, Dior VIII Grand Bal timepiece is ani- or blue. The oscillating weight on mated by the “Dior Inversé” calibres, the 38 mm is decorated with petals developed by Les Ateliers Horlogers in ornamental stones such as opal, Dior located at La-Chaux-de-Fonds and the Swiss manufacture Soprod. It took 18 months to make It took 18 months to make each one each one so that thethey could so that they could proudly house the oscillating weight—obviously func- proudly house the oscillating tional—of the automatic movement on top of the dial. Its sway recalls weight—obviously func- the swirl of a ball gown. tional—of the automatomaticic In addition to the “Dior Inversé 11 1/2 “ movement on top off the dial. calibre, housed in a 38mm diameter

case, there is a new “Dior Inversé 8 agate, chrysoprase, malachite, sugi- 1/4 “ calibre, also developed by Les lite, chalcedony, or turquoise in free Ateliers Horlogers Dior and Soprod, shapes that move around on the face which allows Dior to propose a time- of the dial paved in snow-set colored piece in a more feminine 33mm for- stones with a riot of mineral effects. mat. It is the smallest of the existing The 33mms juggle with ornamen- small complications used in wom- tal stones on the dials and brilliant- en’s timepieces and the Dior VIII cut precious gemstones setting their Dior VIII Grand Bal Résille timepiece, black ceramic Grand Bal Résille models launched openwork oscillating weights. case and bracelet, bezel set with diamonds and deco- in 2013 are equipped with it. As for rated with a black ceramic ring, black mother-of-pearl dial from Vietnam the effect, that is even more prodi- An object of beauty as precious as gious than ever. It gives rhythm to it is singular, each Dior VIII Grand the limited editions that have oscil- Bal timepiece takes the magic of the lating weights in feathers festooned moment, the head-spinning swirl of a with mother-of-pearl (in 33mm) or gown and intoxicating colors to new made of diamond-hemmed feathers and unrivalled heights. It is a way of (in 38mm), playing with pink gold celebrating the very personal and Dior VIII Grand Bal Plume timepiece, pink gold and black high-tech on the bezel. The most prestigious of sumptuous experience of this grand ceramic case, pink gold crown with diamond, black mother-of-pearl dial, metals also takes over an entire time- ball imagined by Dior, the never-end- black high-tech ceramic bracelet. Limited edition of 88 pieces piece for a unique model extolling the ing Ball of Time. pleasure of each moment with luxu- rious simplicity.

1. Dior VIII Grand Bal Pièce Unique n°6 timepiece, pink gold, black ceramic case, black lizard strap, baguette spinels, snow-set spinels dial, ornamental stone petals. One-of-a-kind; 2. Dior VIII Grand Bal Piece Unique n°7 timepiece, yellow gold, black ceramic case, black lizard strap, baguette tsavorite garnets, snow-set tsavorite garnets, ornamental stone petals. One-of-a-kind piece; 3. Dior VIII Grand Bal Piece Unique n°8 timepiece, white gold, black ceramic case, black lizard strap, baguette sapphires, snow-set sapphires , ornamental stone petals. One-of-a-kind piece. Pink gold, diamonds and ceramic. Automatic movement.

www.dior.com www.dior.com 40-hour power reserve. PHOTO CREDIT HERE ZEDLQGG Sowind’s Latest Face awaited superwatch, which it has com- has it which superwatch, awaited to Basel with the unveiling of its eagerly decades, had hoped to mark two its last return the for Geneva in Horlogerie at theSalonInternational delaHaute if you will, of the sound of time.” ment has really changed the perception, so it’s quiteamazingbecausethisescape- eryone knows, there is ev- almost that no sound,‘tick-tock’ famous the of Instead the soundofwatchhaschanged. lution inthewatchindustry,” Sofistisaid. worked onforfiveyears. department company’s researchanddevelopment ing unprecedentedprecision,whichthe escapementdesignaimedatdeliver- new ment watch,ahigh-endpiecefeaturing the recentlyunveiled ConstantEscape- Kering (theformerPPR). a majority stake inSowindGroupby 2011. followedthepurchaseof This both brandssincehisappointmentin for assortment theproduct revamped novelties, having comprehensively Sofisti isarrivingwithabagfullof JeanRichard. Girard-Perregauxbrands watch and the parent company of Swiss luxury SowindGroup, newcomer: noteworthy boast will year this stands,butalsoa not onlyaseaofnew Baselworld — PARIS “Mechanics of Style.” in the form of a lifestyle portal dubbed expanded the site with editorial content, home atgirard-perregaux.comand theworld’swork protecting oceans. highlighting their in Baselforanevent and David Rockefeller Jr., whowillbe Susan environmental conservationists ball player Kobe Bryant to American ships withpersonalitiesfrombasket- hopes willhave buzzing. retailers thatSofisti has undergoneaface-lift ter: At222yearsold,Girard-Perregaux expected to be ready by yearend. No mat- work on the timepiece, which is now take time off for health reasons, delaying nique Loiseau, was recently forced to used in sports cars. pared to a V-12, the 12-cylinder engine communications strategy andinitiatingproduct innovations. Chief executive officer MicheleSofisti isrevamping thegroup’s brands,upgradingits 12 This spring, it will launch an ad cam- online its relaunched it addition, In partner- revealed it year, last the In But itsmasterwatchmaker, Domi- Girard-Perregaux, whichshowed “Not onlythat,butforthefirst time, “This is more than a watch, it’s a revo- At Girard-Perregaux, the star piece is Chief executive officer Michele number of stockkeeping number ofstockkeeping lections, reducing the Girard-Perregaux col- streamlining the in place, he set about strategy munications Sofisti said. is a champion in puzzles,” another loves skiing, another the other plays Swiss horn, one is a rock band musician, into theirprivatelives,todiscoverthat isourfuture. complicated watches.This tourbillons orminuterepeaters,sovery areinchargeof watchmakers. They capable— a lotofyounger—butvery the point,” Sofistiexplained. wayphysical a in that get really you can components andsoon.Onlybyshowing behind it,howmuchwork,thesmall honestlyhavebut they noideawhatis Beach inAustralia.“People buywatches, Brooklyn BridgeinNew York andBondi watches inlocationsasvariedthe dition.com, shows them assembling A dedicatedWeb site,thenewfaceoftra- to Japan, Russia and the Middle East. Australia in March and is headed next young watchmakers, whichalightedin “The New Face of Tradition,” showcasingtouring the planet with its exhibition Angeles. to belocatedinLos and founding supporter of the museum, Perregaux’s role as exclusive timekeeper tag line,thecampaigncelebratesGirard- Pictures. With its “Mechanics of Dreams” of the new Academy Museum of Motion paign featuringimagesfromthearchive gion is “much lower than what it should gion is“muchlower than whatitshould shareinthere- said, notingitsmarket eral areprioritiesforthecompany,” he customers in North and South America. their 44-millimeter cases, will appeal to hopes the sportier new collections, with Sofisti exchange, atcurrent or $19,300 around 18,000Swissfrancs, piece willremainstableat a Girard-Perregaux time- lines. men’s Traveller and Hawk and women, including the new four collections each for men The brand now features units by more than half. “The U.S. and the Americas in gen- While theaverage pricefor com- With thenew “We created this project, which looks “Visiting the manufacturer, you see Most visibly, the brand has been  BY JOELLE DIDERICH DIDERICH JOELLE BY Girard-Perregaux’s Escapement. Constant to $261 million, say sources. Sofisti did to $261million,say sources.Sofisti did widely,vary rangingfrom$107million aslowdown. are experiencing for luxury timepieces, China, the top markets Greater and Kong Hong control, atatimewhen stock rotation and should ensure better ing the number of sku’s in the region. engage potentialclients to use social media to alternative togold,and and titanium as an likematerials ceramic be.” Itplanstodevelop China, so I would say that we need to “There is evidence of a slowdown in with theWestern world,” Sofistisaid. distributionpartnerships. thanks tonew sales intheMiddle Eastaregrowing, business inEuropeis“quite and solid” alone representing35percent.He said of Girard-Perregaux’s sales,withChina accountsforcloseto45percent that Asia saying figures,beyond not discloseexact francs ($2,145 to $3,200), from 6,000 to prices slashed to 2,000 to 3,000 Swiss lines,withaverage from logotoproduct undergone atotalrepositioning,ranging brandhas its Baselworlddebut.The drastic atJeanRichard, whichismaking models inthe1966collection. Sales estimates for Sowind Group reduc- Meanwhile, “I want to balance the weight of Asia The changes have been even more payattention.” industry’s toGirard- reaction Pinault. Much depends on the chairman and ceo François-Henri clude two new diamond-pavéd and women’s pieces,whichin- Perregaux’s two new men’s lines Nonetheless, he described the inventory situation as “under situation as“under inventory units recently set by Kering production target of 40,000 of40,000 target production control,” becauseGi- inpart is still far from its annual rard-Perregaux’s manufac- turing capacity presently double-digits, but the firm stands at around 20,000 sales rose in the low units ayear. Produc- percent in 2012 and tion leapt by 35 to 40 made automatic movement in this price made automaticmovementinthisprice timepieceswithaSwiss- distinctive $7,500). to ($6,435 francs Swiss 7,000 beautiful collection.” tive becauseIreallythinkwehave a positive,” headded.“ButI’m alsoposi- and intheyearstocome,” henoted. know we’re therewithourtwo brands the dealers.They ourpartners, network, our long-termworktodistribution of which meanswegivethesecurity financialsolidity,ing] givesacertain continued collaboration. ship withPinault,wouldguaranteetheir Group, inadditiontotheirgoodrelation- working with the Hayek family at Swatch Group’s ETA subsidiary. feature movementsproducedbySwatch growing portion of JeanRichard watches components like dials and hairsprings. A side suppliers like Swatch Group for key butitreliesonout- Ermenegildo Zegna, fashion houses Bottega Veneta and for otherbrandsandcollaborateswith ies totherestofindustry. ofcomponentdeliver- planned reduction ofSwatchGroup’sover theimpact really themostrelaxing,” henoted. so theoverallsituationworldwideisnot and thereispoliticalturmoileverywhere, cansaynews theeconomy issupershaky, readingthe ic climate.“Ithinkeverybody ind Groupweatheranunstableeconom- brand’s shouldhelpSow- look.This new been redesignedtodraw attention tothe adding thatpoint-of-salematerialshave tive feedbackfrombuyers,saidSofisti, isalreadygeneratingstrongposi- bracket But the arrival of a new range of of range new a of arrival the But “I’m be must I because positive ofalargegrouplike [Ker- “Being part Sofisti said he hoped his decade spent Sowind Group makes movements Then there is the added uncertainty Michele Sofisti WWD BASEL BASEL WWD 30 Rolex Rolls On The secretive luxury watch giant is stepping it up, with a new production facility, acquisitions and investments to boost its presence in emerging markets. BY HAIG SIMONIAN

ZURICH — Google “Rolex” and has marked the culmination of that Rolex’s Bienne, chances are you’ll find copious refer- process. Rolex’s huge site for making Switzerland, ences to ritzy competitions for tennis movements in the Swiss city of Bienne facility.

and golf, or to snazzy yacht and motor should significantly boost efficiency MEYER/ROLEX JEAN BY ! DANIEL PHOTO races. Culture looms, along with awards by consolidating production to just Rolex and its slightly less prestigious banking affiliations, having last year for entrepreneurship and surveys about four locations. Three are in Geneva, Tudor sister brand. joined the boards of jeweler-watchmak- iconic brands, including, prominently, home to the group headquarters and But expansion came at a cost. Heini- er Chopard and of the Swiss subsidiary the Swiss watch brand itself. final assembly operations, as well as ger’s ouster in May 2008 — ostensibly of France’s BNP Paribas bank. What is jarringly absent, however, is two plants for dials, gem setting, cases for “personal reasons” — was widely It has been left to Gian Riccardo anything significant about the com- and bracelets. Separately, more than believed to have stemmed from the Marini, Meier’s successor, to get back pany. That Rolex is more secretive 2,000 workers are employed at the now unlucky overlapping of Rolex’s heaviest on track and return Rolex to its horo- than a Swiss bank has become a cliché. unified and expanded Bienne site — investments with one of the sharpest logical roots. He can safely negotiate Controlled by a private foundation and making it one of the biggest downturns in the watch industry as the the group’s internal politics, being spectacularly inward-looking, the watch factories in the world. global recession hit the sector’s sales — an industry and company veteran. A Geneva-based group gives no “Today, Rolex is entering along with those of most luxury goods. scion of one of the families behind financial data and its execu- a new era. The construction Worse still for the company, demand Rolex’s growth in Italy as a distributor tives decline all interviews. of the new building dem- was hit hardest in the U.S. — a market — among the brand’s most successful (Requests for information onstrates our unshakable to which the group was particularly ex- markets — Marini had headed Rolex for this story were denied.) confidence in the future,” posed, while rivals like Swatch Group’s Italy since 2000. Simultaneously, and Behind the scenes, boasted Bertrand Gros, Omega or Compagnie Financière equally telling, the group created a new however, there have been Rolex’s chairman, Richemont’s IWC were more geo- Hong Kong-based job heading all of significant changes at one at the opening. graphically balanced. Rolex’s foreign subsidiaries to catch up of the world’s biggest and “At a time when the The downturn was perhaps the to competitors in emerging markets best-known watchmakers. supply of strategic reason Rolex selected Bruno around the world. Daniel Neidhart is These include the opening last components is a Meier, formerly chief finan- the executive in this role. October of a large new factory major concern for cial officer, and, before Marini has focused on marketing to for movements, and the death the watchmaking that, a banker, as Heini- make up for that lost ground in those last month of Patrick Heiniger, The GMT industry, our sites in ger’s successor. The choice rapidly developing markets. The climax the former chief executive of- Master II style. Bienne and Geneva was widely taken as “proof” came last December with a deal — esti- ficer spearheading the developments. form a solid manufactur- of market speculation about mated to have cost at least $30 million Typically for Rolex, the death after an ing base that gives the brand stretched finances and a year and possibly more — making unspecified “long illness” of Heiniger absolute autonomy.” diving profits — rumors Rolex the official timekeeper and time- at a relatively young 62 was limited Autonomy was Heiniger’s Rolex characteristically piece of Formula 1 motor racing. to a one-page release. While lauding driving ambition, reducing Rolex’s chose to ignore. The arrangement provides a global his contributions in his 16 years at the dependence on suppliers, notably Meier’s equally abrupt television audience, particularly in helm, no new light was shed on Heini- Swatch Group, for key components The Submariner departure barely two years Asia, South America and the Arab ger’s abrupt ouster in 2008. like some movements and much of model. later triggered equally world, where F1 is booming, and But while controversial internally for its regulating mechanisms and springs. intense speculation. Company watch- marks a leap in the group’s drive to his autocratic style, the steps initiated The vast investments have been reflect- ers assumed that, with its finances increase brand awareness among by Heiniger are largely what trans- ed in output estimated now at up to one now presumably restored — thanks younger potential buyers. formed Rolex from a highly respected million watches a year, split between partly to a faster-than-expected market “Over the last 50 years, both Rolex niche watchmaker into an horological recovery — Rolex’s priority had shifted and Formula 1 have grown into world- powerhouse with more than 6,000 em- to revitalizing the brand. No matter leading aspirational brands and there ployees and estimated annual revenues how prestigious, Rolex seemed to be will be many fantastic opportunities that of $5 billion, making it the largest losing ground to Omega, IWC and even we can enjoy together,” noted Marini. luxury watch brand in the world. LVMH Moët Hennessy Louis Vuitton’s Some of Rolex’s other sponsorships Two decisions have been crucial to sporty TAG Heuer marque. are in the worlds of tennis (Wimbledon, that growth: buying up companies “Rolex was always divided between Roger Federer), golf (PGA), sailing and that performed previously outsourced two factions representing the foun- horse riding as well as cultural and clas- manufacturing functions, like making dation and the operating side, and sical music activities. dials, cases and bracelets, and, perhaps Meier didn’t really suit either,” said a But, well into his 60s, Marini is not most significantly, masterminding the well-placed observer, who requested expected to remain ceo for long. While 2004 merger with what was effectively anonymity. The thinking was that as a Rolex’s revolution in watch production the separate company that made most finance expert, rather than an industry is now complete, it will be up to him of Rolex’s movements — the mechani- veteran, Meier’s appointment was more — and, more importantly, his eventual cal heart of its watches. Gian Riccardo Marini with of a stopgap measure. Nevertheless, successor — to ensure product and Formula 1’s Bernie Ecclestone.

Completion of the new factory MOTTAZ/ROLEX EDDY BY PHOTO Meier has maintained his watch and marketing perform to match. WWD BASEL 13

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THE NATIONAL JEWELRY INSTITUTE PRESENTS: ASSAEL AT BASEL

Assael, the world’s foremost purveyor Pearls are the only gem derived from of South Sea pearls and precious a living organism, and each is com- stones, has partnered with one of the pletely unique. In order to harvest a most celebrated fi ne jewelry design- great pearl, the oyster must remain in ers, Angela Cummings, to create an the water for two to three years. A exquisite collection of pearl, diamond, perfectly round pearl is very rare in- and precious stone jewelry. deed, accounting for just 5 – 10 % of an entire crop. A perfectly matched Debuting at Basel, Angela Cummings necklace, one in which the colors all for Assael has been inspired by the appear to derive from the exact same sea and its treasures. Waves of dia- oyster, may take years or even de- monds crest in necklaces of beautiful cades to create. white pearls; exquisite gemstones create sea anemone earrings with One of the company’s most illustrious centers of yellow pearls; and whimsi- moments happened in New York in cal 18-karat gold seahorses embrace dramatic baroque pearls. ““OOur collection with Angela Lawrence Lewis III, Assael’s CEO, says, “Our collection with Angela offers the offers the haute haute joaillerie customer an exquisite- joaillerie customer an ly modern way to wear pearls. Angela has created a signature collection that exquisitely modern way to our collectors, as well as new custom- ers, will covet.” wear pearls.”

Assael was founded in 1919 in Milan by – Lawrence Lewis III, Assael CEO James Assael, who was, at the time, Large Baroque South Sea white pearl Necklace featur- the co-founder of Milan’s Diamond 1993. An Assael white South Sea pearl ing platinum and diamond pave Coral Branch Motif, Bourse. The family relocated to New necklace, created with 21 perfectly 16.7 x 19.9mm each York in 1936, and James’ son, Salva- matched pearls, fetched $2.3 million 184 diamonds 5 Cts. dor, joined the business in 1945. He at Sotheby’s and remains the most ex- became an important diamond and pensive pearl necklace ever sold at precious stones dealer and then took auction. Assael pearls may also be over the family business in 1972. By found in the designs by some of fi ne 1973, he began his love affair with jewelry’s most prestigious names. pearls after being seduced by the beauty of the largest pearl of all, the Today, Christina Lang-Assael, Salva- Pinctada Maxima, or white Australian dor’s widow, who took over the com- South Sea pearl. He began to travel pany in 2011, runs the business. The through Southeast Asia to acquire the Angela Cummings for Assael collec- best pearls in the world, and even be- tion is her fi rst collaboration, which came a producer when he invested will continue to keep Assael in the Matching platinum and diamond pave Coral Branch Earrings featuring directly in pearl farms in South Poly- forefront of the fi ne jewelry business 2 white Baroque South Sea pearls, 19.5 x 16.1mm each nesia. for the next generation. 86 diamonds 2.42 Cts. ANGELA CUMMINGS ASSAEL the most magnificent pearls in the world

assael.com 212 819 0060 China’s Changing Watch Dynamic While luxury watches might be suffering from a “gifting slump,” appealing to younger and aspirational middle-class consumers is giving executives confidence in the market. BY CASEY HALL

SHANGHAI — China’s luxury watch toward gifting more modestly priced market has slowed on the back of the top luxury goods,” Hurun Report government’s austerity campaign here, founder and chief researcher Rupert though industry insiders remain opti- Hoogewerf said. mistic about future growth. Statistics released in February showed Though exact figures are difficult to Swiss watch exports had dropped 33.6 pin down, it’s believed that between 40 percent year-on-year in Mainland Chi- and 75 percent of luxury watch pur- na. This means last year’s third-biggest chases in China are bought as presents, market for Swiss watches has now fallen a manifestation of the ancient custom to fourth, overtaken by Germany. of guanxi, in which one gives gifts to Despite the recent negativity sur-

maintain a network of business and rounding the luxury watch market in IMAGES BY PETERPHOTO PARKS/AFP/GETTY personal contacts. China, Florent Bondoux, head of strat- The market for high-end watches in China is slowing due to the government’s However, this traditional Chinese egy and intelligence for Digital Luxury austerity campaign and crackdown on graft among public officials. practice has been under fire lately, with Group’s World Watch Report, believes to grim sales figures on the Mainland. “This measure impacts more the photographs of government officials the slowdown will be short-lived. “We estimate that half of luxury traditional brands as gifts were made wearing expensive watches — decidedly “Reluctance toward government watch purchases by Chinese consumers to politicians, most of whom are over incommensurate with their modest gifting, along with the relatively are done abroad,” Bondoux explained. 45 years old. Watches made of gold or salaries — causing an uproar when they marginal impact of bans of luxury “Being able to generate brand platinum, diamonds — those are tradi- were published on the Chinese Internet advertising, are temporary barriers to awareness in China while making tionally given as gifts.” late last year. purchase,” he said. sure product inventory and shopping It’s the rising generation of sophisti- The fallout from these scandals “The growing middle class, quick experiences are adapted to Chinese cated consumers — China’s post-bling — plus new President Xi Jinping’s wealth creation from tier two and three clientele in stores in cities to which wealthy — on which Hublot is focused, continued focus on graft among of- cities — as well as increasingly impor- they travel the most is a must to maxi- through strategic partnerships with ficials — has resulted in many govern- tant tourism shopping — are macroeco- mize watch sales.” brands like Ferrari, which are well- ment employees forgoing timepieces nomic and purchase-trend drivers that KPMG’s “Global Reach of China known and respected among young, altogether, lest they be labeled corrupt make it difficult to forecast a market Luxury” survey, released this year, urban Chinese men. and profligate by a watchful public. decrease in the long term, although showed a majority of survey respon- “Hublot has a great future in “I’m not wearing a watch, now a lot market adjustments might be observed dents (72 percent) purchased luxury China, especially among the new of people don’t wear a watch. items during overseas trips, generation that is not going for the It’s easier to avoid people’s Luxury watchmakers are aiming with cosmetics, watches and same classic watches as their par- gossip this way,” Shenzhen at younger customers and the bags being the most popular ents,” Guadalupe said. “We have to Municipal People’s Congress aspirational middle class in China. items to buy abroad. be a little patient, but we won’t stop Chairman Liu Pu recently With the VAT on high-end working on the new generation.” told local media. watches running as high as 45 The Oriental Watch Co. launched Though it remains to be percent in Mainland China, it’s its watch retail business in Mainland seen whether the current no wonder people are looking China in 2004 and now operates fervor for austerity among to get a better bang for their more than 40 stores and brand China’s governmental elite yuan elsewhere. But there are boutiques in 20-plus cities, distrib- will be an ongoing concern, still high-end horology brands uting luxury watch brands including recent statistics indicate the that are positive about their Rolex, Piaget, Vacheron Constantin, market has softened consid- prospects within China itself. IWC, Jaeger-LeCoultre, Longines, erably since Xi’s austerity Hublot ceo Ricardo Gua- Omega and others. PHOTO BY LAMPHOTO YIK FEI/BLOOMBERGVIA GETTY IMAGES measures were unveiled in dalupe said that although the Director and company secretary mid-2012. in the midterm.” brand is a relative newcomer to the Alain Lam shares Guadalupe’s enthu- In January, Hurun Report’s Chinese For now, Bondoux believes the high Chinese market the reception thus far siasm about the future of the China Luxury Consumer Survey 2013, which end will be the hardest hit segment of the has been positive and the company market, pointing out that the desire polled 551 Chinese millionaires with a market, agreeing with Hoogewerf’s senti- plans to expand its retail in Greater for luxe watch brands remains undi- net worth of more than 10 million yuan ments that more cautious gift-givers will China to 18 from 13 stores by yearend. minished, even if Mainland sales have ($1.6 million at current exchange), be looking at less ostentatious options. Guadalupe believes his brand is taken a temporary tumble. found luxury watch brands had fallen “Government gifting will not disap- somewhat insulated from the current “We see a growing number of high- out of favor. pear, but we might observe a preference crackdown because of its particular net-worth individuals in China becom- Longines was the only watchmaker toward more affordable watch models appeal among younger consumers at- ing big collectors,” he said. “These indi- to make the list of brands popular with when selecting gifts,” he added. tracted to a more modern aesthetic. viduals are moving up the value chain superrich gift-givers, replacing Rolex in The increasing number of Chinese “It doesn’t impact Hublot so far, as we and have their own personal taste and 15th place. tourists heading overseas to consume are a young brand in China, with contem- individuality. Our focus, therefore, is on “This year, there is a clear trend luxury products may also be contributing porary and sporty pieces,” he explained. the aspirational middle class in China.” 16 WWD BASEL

ZEDLQGG 30  ADVERTISEMENT THE WORLD OF VICENZAORO FIERA DI VICENZA ZNXR` Va` dNf V[a\ aUR d\_YQ At the JCK Show in Las Vegas for the eighth and promotes its new projects on a global scale. P\[`RPbaVcR fRN_ 3VR_N QV CVPR[gN dVYY \_TN[VgR AUR a_R[Q` N[Q aUR ´:NQR V[ 6aNYfµ \S WRdRYYR_f the participation of 130 Italian companies that are have found great success in the 2013 edition of the _R]_R`R[aNaVcR` \S aUR ZNV[ ´:NQR V[ 6aNYfµ ]_\QbP- 5\[T 8\[T 6[aR_[NaV\[NY 7RdRYYR_f @U\d aUR Z\`a tion centers. In a 1,500-square-meter exhibition area, VZ]\_aN[a RcR[a V[ .`VN QRQVPNaRQ a\ WRdRYYR_f 3VR_N QV CVPR[gN dVYY RZ]Y\f aUR Rea_RZRYf `bPPR``SbY held from March 5-9, 2013. VICENZAORO Italian Club format to showcase the The area dedicated to mega trends was created Z\`a ORNbaVSbY P\YYRPaV\[` Of aUR 6aNYVN[ P\Z]N[VR` N[Q ]_\QbPRQ Of A?2;1C6@6<; 7RdRYYR_f  aUNa _R]_R`R[a aUR cR_f S\b[QNaV\[` \S 6aNYVN[ Forecasting, the independent and permanent UR_VaNTR' P_RNaVcVaf V[[\cNaV\[ QR`VT[ N[Q _R¿[RQ \O`R_cNa\_f \S 3VR_N QV CVPR[gN QRQVPNaRQ a\ aUR manufacturing art. _R`RN_PU \S `afYR a_R[Q` dVaUV[ aUR d\_YQ` \S WRdRY` More than that, Fiera di Vicenza has been watches and fashion accessories. It has captured the NPP_RQVaRQ aU_\bTU 06/7< aUR D\_YQ 7RdRYYR_f V[aR_R`a \S N T_RNa [bZOR_ \S cV`Va\_` P\[¿_ZV[T aUR Confederation, to plan and implement a United excellent results of this venture. ;NaV\[`R[Q\_`RQ 0\_]\_NaR @\PVNY ?R`]\[`VOVYVaf At the Hong Kong exhibition, TRENDVISION ]_\T_NZ S\_ aUR V[aR_[NaV\[NY WRdRYYR_f V[Qb`a_f 7RdRYYR_f  3\_RPN`aV[T ]_R`R[aRQ N dRYY`a_bPab_RQ AUR ]_\T_NZ dUVPU Z\OVYVgR` aUR WRdRYYR_f `RPa\_ program of initiatives that focused on Italian in the UN’s mission to realize the Millennium WRdRYYR_f AUR RcR[a` dR_R UVTUYVTUaRQ Qb_V[T 1RcRY\]ZR[a 4\NY` V` aUR XRf RYRZR[a V[ 06/7<·` a press conference at which the most important formal relationship with the UN Economic and Chinese and Hong Kong trade magazines were Social Council (ECOSOC). At meetings with top present. The initiatives suggested in Hong Kong, \S¿PVNY` V[ aUR B[VaRQ ;NaV\[` 5RNQ^bN_aR_` V[ the most important commercial and productive ;Rd F\_X 3VR_N QV CVPR[gN dN` _R]_R`R[aRQ Of Va` UbO dVaUV[ aUR WRdRYYR_f V[Qb`a_f N_R aUR _R`bYa \S N Executive Director Corrado Facco. cooperation between Fiera di Vicenza, the organizers AUR NPaVcVaVR` PN__VRQ \ba Of 3VR_N QV CVPR[gN of the show—the Hong Kong Trade Development VQR[aVSf aUR aURZR _RTN_QV[T a_NPRNOVYVaf N` Council and ICE (The Italian Trade Commission). fundamental, from the extraction of precious Next is VICENZAORO Spring, the International ZNaR_VNY` a\ aUR P\ZZR_PVNYVgNaV\[ \S aUR ¿[V`URQ 7RdRYYR_f @U\d `PURQbYRQ S_\Z :Nf % a\ :Nf product, with a special attention in maintaining in Fiera di Vicenza. Jewel trends will also be on stage ethical social relationships. in an exclusive area called “TRENDVISION AUV` V` \[Yf aUR ¿_`a \S N Y\[T `R_VR` \S N]]\V[a- Inspirations 2014.” The TRENDVISION Area will ZR[a` aUNa N_R ]N_a \S N ]YN[[V[T ]NaU `aN_aRQ Of NY`\ OR ]_R`R[a Na aUR 9beb_f-7PX V[ 9N` CRTN` aUR 3VR_N QV CVPR[gN V[ N O_\NQR_ `a_NaRTVP `RaaV[T AURf RePYb`VcR `U\d aUNa TNaUR_` a\TRaUR_ aUR ¿[R`a N_R NS¿_ZNaV\[ \[ N TY\ONY `PNYR dVaU aUR \OWRPaVcR \S WRdRYYR_f _RaNVYR_` QR`VT[R_` N[Q ZN[bSNPab_R_` ORP\ZV[T N[ V[ÀbR[aVNY V[aR_Y\Pba\_ N[Q _RSR_R[PR AUNa RcR[a V` `PURQbYRQ a\ aNXR ]YNPR S_\Z :Nf % point in regards to ethical, social and economical to June 3, just before the opening of the JCK Show, aURZR` S\_ aUR V[aR_[NaV\[NY WRdRYYR_f P\ZZb[Vaf dUVPU _b[` S_\Z :Nf  a\ 7b[R  AUR ]_\T_NZ [Rea a\ aU\`R aURZR` aUNa N_R `a_VPaYf aVRQ a\ aUR includes meetings and seminars to present Trends development of the business. to the audience. www.vicenzaoro.com

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THE NATIONAL JEWELRY INSTITUTE PRESENTS: BUCCELLATI AT BASEL

Tradition, skills and excellence in handcraft- dation is rooted in rich historical tradition, yet museums that he was inspired to produce ing, creativity and the highest quality mate- the activity is completely infused with mo- designs based on the details and colors of rials: these are the values that have always dernity. particular laces. It is a very diffi cult task to been central to Buccellati, a long-established create a chain technique that can leave the fi rm that makes Italian-designed jewelry and The extensive use of texture engraving re- proportions and balance of the design un- which has preserved its stylistic identity for mains one of the most identifi able elements altered and that can confer lightness to the almost a century by reviving centuries-old of the jewels created by Gianmaria and An- jewel. The Valenciennes laces have always goldsmithing traditions in the top end of the drea Buccellati in their Milanese workshops. been, in all their varieties, a source of ideas jewelry market. Precious gold worked in this way, attracts and creations to Buccellati, who made the and gives off the light offering the most “tulle” workmanship one of his buttonhole beautiful refl ections on the jewels. fl owers, admired worldwide for its unique- ness and incomparableness, its lightness and preciousness. This technique is the fl ag and Gold laces, cascades of rare the banner of a century-old tradition skill- fully blending past and future in creations stones, and the mysterious destined by nature to become true “memo- shimmer of precious metals rabilia”. Every new drawing becomes the starting are all the result of the Buccel- point of a collection, and every collection be- comes a success: the styles are ageless, the lati family’s artistic creativity workmanship incredible. N[Q aUR NS¿ _ZNaV\[ \SS N aVZRVZR less style and unique talent.

The Eternelle rings are one of the iconic ob- Gold laces, cascades of rare stones, the mys- jects created by Buccellati: they are called terious shimmer of precious metals are all this way after their uninterrupted design, the result of the Buccellati family’s artistic wrapping around the wearer’s fi nger with no creativity and the affi rmation of a timeless beginning and no end, with a fl uid and eter- style and unique talent. Buccellati is both an nal motif. Handcrafting is amazingly fasci- ancient and modern history where the foun- nating and deserves an authentic and even noble approach: every piercing is carried out scrupulously, the proportions between full and empty spaces are essential.

A more modern approach to ring styles is characterized by the Cocktail Rings’ Collec- tion: Gianmaria Buccellati has revived the passion for this object and offers it in a skil- ful blend of styles, colors, cuts and lines to To own a Buccellati piece means to belong create in each ring a sense of individuality so to a sort of legend: his jewels are gorgeous, evident that it cannot go unnoticed. with various styles of traditional engraving. Voluptuous pieces recalling Renaissance The Tulle workmanship is a distinctive mark times and Benvenuto Cellini. This is craft as of the Buccellati style: it was only following art, this is design on a grand scale, but never a visit to one of Venice’s most famous lace mass-produced. From the Buccellati Unique Cuff Bracelet Collection

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