CHINA’S LUXE LIMIT FLYING GOVERNMENT UNVEILS RULES ON FASHION LAVISH SPENDING. BRIVIO/GETTY IMAGES PAGE 3 FOLLIES PAGE 12 MARCO Bridget Foley ’s Diary PHOTO BY

GREEN FOR RED Valentino Sold For $858 Million

By LUISA ZARGANI

MILAN — Valentino is looking East to the oil-rich desert of Qatar to fuel its next phase. Mayhoola for Investments, an investment vehicle backed by a private investor group from the Middle Eastern ■ ■ FRIDAY, JULY 13, 2012 $3.00 WOMEN’S WEAR DAILY monarchy, disclosed Thursday it agreed to acquire WWD Valentino Fashion Group SpA. Terms of the deal were not disclosed, but Milan- based sources peg the price tag at around 700 million euros, or $858 million at current exchange rates. The agreement was inked between Mayhoola and Red & Black Lux Sarl, a company indirectly con- trolled by the Permira Funds in partnership with the Marzotto family. Through the acquisition of VFG, Mayhoola will ac- quire 100 percent of Valentino SpA and the M Missoni license business, while MCS Marlboro Classics is being carved out from VFG and will remain under the ownership of Red & Black. The It is understood Mayhoola is controlled by the royal family of Qatar. Red & Black will continue to also own a majority stake in Hugo Boss, which is not part of this transaction. Permira took control of VFG with some members of the Marzotto family through Red & Black in 2007, Lady shelling out about $3.55 billion for the group, which included a majority stake in Hugo Boss, which at the time was Permira’s prime motivation for the deal. Valentino’s chief executive offi cer Stefano Sassi told WWD the brand’s shareholders were impressed In by the buyers’ “level of ambition and strong desire to further develop the label. They took control not only of the brand, but also of the projects behind it.” The executive underscored the “continuous growth” of Valentino, which helped attract “strong interest” Black from multiple parties. “After four intense years, a new phase opens up and we are offered a chance to Much like its creator, the push forward with additional resources,” said Sassi, fi rst scent from Lady Gaga who will remain at the helm of the company, together is anything but ordinary. SEE PAGE 4 With black juice which transforms in the air to a Topshop Hits Nordstrom clear mist when sprayed and an egg-shaped bottle with a By DAVID MOIN heavy gold claw-shaped cap, THROUGH ITS DEAL with Topshop, Nordstrom will Lady Gaga Fame will be sold take a trendy turn this fall — and hopefully turn its globally beginning in August. women’s fashions faster. At right, the fi rst look at On Thursday, the two retailers announced that Topshop will open Sept. 10 inside 14 Nordstrom loca- the fi nalized centerpiece of tions spread across the U.S. the line: the 100-ml. eau de Each Nordstrom store will install a 2,500-square- foot Topshop for women’s and a 1,500-square-foot parfum which Gaga calls her Topman rigged with fl ashy mannequins, fi xturing and “Ultimate Masterpiece.” For lighting, and stocked with the British brand’s edgy, more, see page 6. shaggy fake fur coats, cropped biker jackets, short se- quined skirts, cheetah print T-shirts and trim-fi t tai- lored men’s jackets, among other items. “We think our customers are going to love their take on trend-led fashion at great prices,” said Pete Nordstrom, Nordstrom Inc.’s president of merchan- dising. “But this is not a price play. It’s really a trend and fashion play.” “I believe Topshop and Topman departments offer the Nordstrom customer something very different and unique with our signature British fashion authority,” said Sir Philip Green, owner of U.K.-based Arcadia Group, which owns Topshop and Topman. In an interview at the Topshop fl agship in New York’s SoHo, Nordstrom and Green said they formed “a partnership” that transcends typical wholesale- retail relationships. Nordstrom will select and edit from Topshop’s extensive and quick-changing as- sortment, but will also be receiving some specially designed products, such as “premium” dresses for a dressed-up look. There will also be a catalogue just PHOTO BY THOMAS IANNACCONE; STYLED BY AMY LOMACCHIO SEE PAGE 8 2 WWD FRIDAY, JULY 13, 2012

Ackman Turns Eye Toward P&G THE BRIEFING BOX McDonald, P&G could be at a involvement could mean for P&G IN TODAY’S WWD By MOLLY PRIOR loss to find a successor internally. and its management team, she said, “There’s not an obvious successor “The company’s days of produc- CHANGE IS on the horizon at within the company and that is a ing subpar results are numbered, Procter & Gamble Co., as activist major issue,” he said. and that could ultimately include investor William Ackman has en- Caris & Co. analyst Linda a management change. I would like tered the scene. Bolton Weiser expressed the to see the pressure rise to the point But the change may be faster same concern, noting that many where disruptive decisions have to and grander than Bob McDonald of the obvious successors left the be made. P&G’s evolutionary ap- had planned, and several Wall company after getting passed over proach hasn’t worked. The compa- Street analysts assert it could ulti- for the job when McDonald took ny has become middle-aged. It’s got mately cost the chairman, president the helm from A.G. Lafley in 2009. fat around the middle and it’s dif- and chief executive officer his job. ficult for decisions to be made.” In On Thursday, the Federal her view, P&G has a lot of positives Trade Commission gave Ackman’s to build on, namely a strong cre- hedge fund Pershing Square ative ability, a pipeline of new prod- Capital Management clearance ucts, management expertise that is to take a stake in P&G. An FTC often seen as the gold standard and Synchronized spokesman said the Hart-Scott- a teeming portfolio of brands. swimmers at the SARDELLA DONATO Rodino Premerger Notification “There’s undervalued as- Beverly Hills Hotel.

Act requires clearance for invest- sets here. And so far the changes PHOTO BY ments of $68.2 million or more. have only come internally,” said Mayhoola for Investments, an investment vehicle Ackman’s interest in the com- Maneaty. “Now external pressure backed by a private investor group from Qatar, has pany is already being cheered is being added, and I think only agreed to acquire Valentino Fashion Group SpA. PAGE 1 by investors. P&G’s shares good things are going to come of it.” climbed 3.75 percent to close at A P&G spokesman said of Nordstrom and Topshop announced Thursday that $63.70 on the New York Stock Ackman’s interest in the com- Topshop will open Sept. 10 inside 14 Nordstrom locations Exchange on Thursday. pany: “We welcome investment Bob spread across the U.S. PAGE 1 Analysts said an investment in our company. We are focused McDonald in P&G by Ackman, regardless of on creating shareholder value The Chinese government unveiled new rules that could its size, would shake things up at In her view, McDonald inher- by executing on our plan to de- deliver a further blow to luxury sales in China, which are the $82.6 billion company, which ited a lot of problems created at liver top- and bottom-line growth already showing signs of slowing down. PAGE 3 is confronting a slowdown in the end of Lafley’s tenure, but he through our $10 billion cost sav- developed markets and market should have aggressively tack- ings program, renewing our focus The Damiani Group has tapped Thierry Chaunu as chief share losses. Last month, P&G led cost-cutting from the outset, on innovation, pricing initiatives executive officer of the Americas. PAGE 3 cut its profit forecast for the final and not waited until this year. and improved execution and real- quarter of the fiscal year, citing a In February, McDonald said the locating resources to invest in the Lady Gaga has turned her surprising talents to fragrance slowdown in developed markets company aims to wring out $10 highest return opportunities.” and the superstar has come up with what she bills as her in particular, as well as in China. billion in costs by fiscal 2016. Stifel Nicolaus analyst Mark Ultimate Masterpiece. PAGE 6 P&G now expects organic revenue Ackman was largely unsuccess- Astrachan would like to see P&G gains in the fourth quarter ended ful at bringing change to Target put a greater focus on its beauty Shakira is getting sensual — again — with her third June 30 to be between 2 and 3 per- Corp. but has succeeded in shak- business, given it promises better fragrance. PAGE 7 cent versus the year-ago period. ing up J.C. Penney Co. Inc. Many prospects from profitable growth.

“This is an activist shareholder financial observers have come to “Unfortunately, P&G has spent Sephora has great expectations for its first Brazilian who is going to press for changes see him as a white knight of sorts. more and grown less compared to store, which opens today in São Paulo’s new JK Iguatemi either in management or strategy,” “I have always wondered where Unilever and L’Oréal.” He added mall. PAGE 7 said Javier Escalante, executive di- the activist investors were,” said that regardless of whether Ackman rector at Consumer Edge Research. Connie Maneaty, analyst at BMO takes a position in P&G or not, Dita Von Teese showed off her latest number and its “This will put a sense of urgency Capital Markets. “How could you “Stirring the pot isn’t a bad thing Jenny Packham-designed costume poolside at the Beverly on the board to make any changes have a large, established company if it were to expedite the decision- Hills Hotel on Wednesday. PAGE 9 that are needed and it opens the like P&G underperform for so making process at Procter.” He door to people outside the com- long, and nobody rabble rouse for added, “Procter has a host of issues Business weekly Challenges has released its annual pany.” He added that should the better results? It’s a welcome de- and most importantly, it continues ranking of the 500 biggest fortunes in France. PAGE 9 board ultimately decide to replace velopment.” As for what Ackman’s to lose share” to its peers.

Lawmakers on Capitol Hill lambasted the U.S. Olympic Committee for dressing American Olympic athletes in Bust Shuts Down 70 Counterfeit Sites clothing and uniforms manufactured in China. PAGE 11

Investment bank Avalon Group and advisory firm Net the warrants for the seizures. products from the operators and Worth Solutions Inc. struck a deal to merge. PAGE 11 By KRISTI ELLIS Officials said the domains those that did received “cheap

“closely mimicked legitimate Web counterfeit products.” Losing luggage on a trip from New York to Paris can be WASHINGTON — Federal authori- sites selling authentic merchandise Authorities said they uncov- a very unpleasant, and costly, experience. PAGE 12 ties on Thursday said there is grow- and duped consumers into unknow- ered a new, more sophisticated ing concern about the sophisticated ingly buying counterfeit goods.” component of the fraudulent sites nature of counterfeit Web sites, as “This operation targeted crimi- used to further fool consumers ON WWD.COM they announced the seizure of 70 nals making a buck by trying to into believing they were making sites they allege were illegally sell- trick consumers into believing they purchases from legitimate sites ing thousands of fake products, in- were buying name-brand products — the display of Secure Sockets EYE: Dita Von Teese went back in time to conjure up Forties cluding clothing, jewelry and other from legitimate Web sites when in Layer certificates that provide au- silver screen icons Betty Grable and Carmen Miranda for luxury goods, as part of an opera- fact they were buying counterfeits thentication for financial informa- her latest act at the launch of the Cointreau Summer tion dubbed “Project Copy Cat.” from illegal but sophisticated im- tion. SSL certificates are meant to Soiree series at the Beverly Hills Hotel. For more photos, Counterfeits of several fashion poster sites located overseas,” said reassure consumers that they are see WWD.com/eye. brands were being sold on the ille- ICE director John Morton. “The sending sensitive financial infor- gal sites, including Louis Vuitton, imposter sites were simply a fraud mation to the intended server and TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS Chanel, Tory Burch, Tiffany, True from start to finish and served no not an illegal server. In addition to [email protected], USING THE INDIVIDUAL’S NAME. Religion and Burberry, according purpose other than to defraud and providing authentication, legiti- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. to U.S. Immigration & Customs dupe unwary shoppers.” mate SSL certificates also provide VOLUME 204, NO. 9. FRIDAY, JULY 13, 2012. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays Enforcement officials. A sample of An ICE spokeswoman said: encryption that “enhances the se- and holidays, with one additional issue in May, June, October and December, and two additional issues in February, March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine the bogus fashion domain names “This is the next generation of IPR curity of credit card numbers, user Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: seized included louisvuittononli- theft and consumer fraud. I think names, passwords and other sensi- S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at neoutlet2012.net, tiffanyandcojew- in some cases when we are talk- tive information,” authorities said. New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian elrysale.net, usa-jeansoutlet.com, ing about buying counterfeit goods The operation was part of Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S usa-truereligionjean.com, ukfash- online, the sites are not as sophis- a larger initiative known as WEAR DAILY, P. O . Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ionoutletmall.com, chanel2outlet. ticated. There are misspellings of “Operation In Our Sites,” launched ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, com, tory-burchoutletsclearance. names or things that are more obvi- two years ago. The seizure of 70 call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, com and bpuma.com. ous indicators that you may be buy- domain names brings the total option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless ICE’s Homeland Security ing counterfeit products, in addi- number to 839. Of the previous 769 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. You will receive a full refund on Investigations-led National tion to the price being significantly names seized, 229 have been for- all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all Intellectual Property Rights lower. But in these cases, the sites feited to the U.S. government. 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 for reprints Coordination Center spearheaded are virtually indistinguishable from A seizure banner is posted on of articles please contact The YGS Group at [email protected], or call 800-501-9571. Visit us online at the operation in conjunction with the real thing and prices are either each Web domain name and pub- 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 field offices in Denver, El Paso, at retail value or slightly lower, so lic service announcements are we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at Houston, Newark and Salt Lake legitimate consumers who are buy- linked from the seizure banner 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 O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED City. U.S. Attorneys’ offices in the ing online think they are buying the on each of the 229 forfeited Web ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER Western and Southern Districts right thing…at a valid site.” sites, which are designed to edu- 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 of Texas, and Districts of New She said that in many cases cate the public about the econom- DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A Jersey, Colorado and Utah issued consumers never received the ic impact of counterfeiting. SELF-ADDRESSED STAMPED ENVELOPE.

WWD FRIDAY, JULY 13, 2012 3 WWD.COM

China Rules Could Hamper Luxe Carol Shen Named To Gucci China Post a post, according to the reports. patterns recently. By ELLEN SHENG China’s public institutions, includ- “There’s a bit of a shift in what’s ing legislative bodies, courts and po- happening with what people are buy- By AMANDA KAISER HONG KONG — As concerns mount litical parties will need to adapt to the ing. We see that they’re buying lower- over China’s economic·· slowdown, lux- regulations. priced items. Let’s say men who usu- GUCCI HAS TAPPED Carol Shen, an Estée ury executives might have to contend “While the regulation appears to be ally buy jewelry are now switching to Lauder veteran, as the president of Gucci with another piece of news coming out particularly targeted at expenses that cosmetics for their girlfriends,” he said. China, overseeing Mainland China, Macau of the country that could dent sales. were incurred by the government and That said, “buying is still strong and and Taiwan. This week, the Chinese govern- notably luxury cars, food, spirits and preference for luxury is still very strong” Shen, who will start her new job Sept. 3, ef- ment unveiled new rules barring gov- travels (rather than watches, suits and among consumers, he concluded. fectively replaces Joe Wong, the former Gucci ernment agencies from purchasing pens), they set the tone for a more seri- In the latest sign that the Chinese Greater China president. Wong, who was luxury items, goods or commodities ous crackdown on briberies,” J.P. Morgan luxury market is starting to soften, based in Hong Kong, left the company about “above certain standards,” accord- Cazenove analyst Melanie Flouquet Hong Kong-based Chow Tai Fook said a month ago for personal reasons, according ing to state-run media. The new rules wrote in a note earlier this week. Thursday that same-store sales at its to a Gucci spokesman. Wong also oversaw could deliver a further blow to luxu- Flouquet said that some luxury ex- Hong Kong and Macau shops declined by the Hong Kong operations of Gucci but the ry sales in China, which are already ecutives, notably in hard luxury and one percent in the first quarter. The com- spokesman declined to specify who will now showing signs of slowing down. suitmaking, have noted a cooling of pany last month also reported that same- manage that market. Gucci said that Shen has spent more than 20 years at the Estée Lauder Cos. Inc. For the last 10 years, she has been managing di- There has been a slowdown in gift-giving. We don’t have a great rector of the beauty company’s China opera- tions in Shanghai. Shen will report to Gucci president and cause for worry, but there has been an impact. chief executive officer Patrizio di Marco. Di Marco said Gucci is entering a “new — STACEY CARTWRIGHT, BURBERRY GROUP PLC phase of growth,” as the brand moves from an expansion phase to a “consolidation” phase. The executive said the company moved its China headquarters from Hong Kong to Gift-giving is an ingrained part of gift giving in the government transi- store sales growth in China declined Shanghai a few months ago to strengthen doing business in China. Expensive tion. Most had hoped that sales would slightly in the last fiscal year, increasing the brand’s presences and operations in gifts such as watches or cars are recover in November once the new by 32 percent, down from 35.2 percent in Mainland China. used to strengthen relationships and appointments came on board but this the previous fiscal year. Chow Tai Fook “With Carol Shen’s appointment, our focus deals. But upcoming changes in the new regulation “puts in question the claims to be China’s largest jeweler. will be on deepening our engagement and re- government leadership and growing speedy recovery of gift-giving.” China has seen a less-than-stellar lationships with our customers and stakehold- dissatisfaction over the country’s Stacey Cartwright, chief financial string of economic data recently. On ers in China,” Di Marco said. widening income disparity have led officer of Burberry Group plc, said Tuesday, the country·· said its June im- to a clampdown on such shows of “There has been a slowdown in gift- ports and exports slowed and issued a conspicuous consumption. giving. We don’t have a great cause bearish forecast for the second-half of The new rules, which will go into for worry, but there has been an im- the year, citing the ongoing global finan- Rafaella Sportswear effect Oct. 1, are aimed at curbing os- pact.” As reported, Burberry posted cial crisis and low consumer confidence. tentatious spending by government of- Wednesday weaker-than-expected Today, China is expected to release Taps Miller as Pres. ficials, reported news agency Xinhua first-quarter figures. second-quarter GDP data signaling a and newspaper China Daily. Officials More broadly, Simon Tye, execu- slowdown from the 8.1 percent growth who don’t follow the new frugality rules tive director at Ipsos in Hong Kong, it registered in the first quarter. By LISA LOCKWOOD may face disciplinary action, including a market research firm, has noted a — WITH CONTRIBUTIONS FROM the possibility of being dismissed from downward shift in Chinese shopping SAMANTHA CONTI DENISE MILLER HAS been named president of Rafaella Sportswear, a division of Perry Ellis International Inc. Most recently, she was with G-III Apparel Group Ltd. as president of Calvin Klein suits Chaunu to Head Damiani Americas and suit separates. Earlier, she spent nine years at Kellwood Co., where she served as president of David Meister, Democracy and THE DAMIANI Group has tapped growth with my experience in the mar- Bice Dresses, and, before that, president of Thierry Chaunu as chief executive of- Thierry ket,” said Chaunu, who most recently Liz Claiborne Dresses and Suits. ficer of the Americas. Chaunu served as president and chief operat- Miller will be based at Rafaella’s New York Chaunu takes the reins as his ing officer at Leviev Diamonds and di- office and will be responsible for all aspects predecessor, Kari Allen, heads to rector at Marina B jewelry. of the women’s sportswear business, including Versace as president of the brand’s An ex-vice president of market- sales, design, merchandising and operations. watch and jewelry division for the ing at Cartier’s North America divi- She reports to Oscar Feldenkreis, vice chair- U.S. and Caribbean. sion, as well as a former president man, president and chief operating officer of An industry veteran who began at Christofle and Chopard, Chaunu Perry Ellis International. his jewelry career in 1985 at Cartier, is charged with the task of extending Miller succeeds Lana Todorovich, who has Chaunu will assume the responsibil- Damiani’s reach specifically in the served as interim president of the Rafaella busi- ity for operations of Damiani in the U.S. and Mexico. ness. Todorovich will resume her role as presi- U.S. market as well as in Canada, Latin “The challenge to take this multi- dent of swim, ladies’ activewear and shapewear. America and the Caribbean. Based in generational Italian jewelry house, In a move to strengthen its design and New York, he will oversee sales, market- renowned for design with vertically in- merchandising functions within Rafaella, ing, retail and wholesale distribution. tegrated operations and wholly owned Veronica Davis, executive vice president of “I knew that this was an incred- factory production, to new heights in design for Laundry by Shelli Segal, a divi- ible opportunity to blend the dynamic the Americas was one I could not pass sion of PEI, will oversee those functions for design and history of the legendary up,” he said. both Laundry and Rafaella. Davis reports to brand and their planned trajectory for — ALEXANDRA STEIGRAD Feldenkreis.

$101,966.61 at current exchange, Wijnants Wins Europe Woolmark Prize to assist them in underwriting their next fashion show. In “I FEEL LIKE Heidi Klum!” winning design was a chunky countries, all of whom were addition, the winning designer said Alber Elbaz, who took sweater dress made to look as if asked to create designs using will have his or her collection to the stage in London on it had been tie-dyed. “I am very, merino wool. sold to key retail partners Thursday to announce the very surprised and honored. As reported, regional design such as Harvey Nichols in the European regional winner of The other candidates were contests are taking place this U.K., Lane Crawford in China, the International Woolmark really great and I am happy to month in China, Australia, Eickhoff in Germany and Prize. “One of you will win. have participated,” the designer India and Europe. Winners will Bergdorf Goodman in the U.S., You’re either in — or you’re said. Wijnants shows his ready- receive $50,000. Sophie Theallet beginning in August 2013. out!” he said, mimicking the to-wear collection in Paris won the U.S. award and $100,000 The global fashion model who hosts “Project and has more than 60 stockists earlier this week. All of the competition awards outstanding Runway.” “Honestly, the debate around the world, including regional winners will compete and emerging designers for was extremely heated — so Colette. Judges, including for the International Woolmark their creativity in merino wool. those who didn’t win, please British Vogue editor Alexandra Prize, which will be given The contest aims to develop don’t take it too hard.” Shulman and designers Giles in February during London the next generation of fashion Elbaz handed the prize to Deacon and Dean and Dan Fashion Week. That winner IMAGES JON FURNISS/AP/PRESS ASSOCIATION Christian Wijnants and his designers and to highlight 34-year-old Belgian designer Caten, chose from among 17 will receive an additional Merino wool design entry. wool’s eco credentials. — S.C. Christian Wijnants, whose designers across 11 European 100,000 Australian dollars, or PHOTO BY 4 WWD friday, july 13, 2012 WWD.COM Valentino Sold to Mayhoola for $858M

{Continued from page one} sumption, scandals and stardom in ownership for Valentino. with the brand’s creative direc- behavior…A lesson to the entire In 1998, the legendary coutu- tors, Maria Grazia Chiuri and fashion world.” rier, who founded the company Pierpaolo Piccioli. Giammetti did not mince in 1962, agreed to sell 100 per- A Mayhoola spokesman words as he added: “We wish cent of his company to Holding stated: “Valentino has always for the Valentino company that di Partecipazioni Industriali, or

been a brand of unique creativ- it will be able to accomplish fu- HdP, a now-defunct investment ity and undisputed prestige.” ture projects with the resources company that was controlled by Mayhoola was “impressed” by and support that was lacking in the Fiat group and partly pub- the work of Chiuri, Piccioli and recent years, as the company licly listed, which also owned Sassi. “Their ability to blend the had to perform under a vision- the GFT SpA manufacturing aesthetic values of the founder, less ownership that was only group, Fila and Joseph Abboud. Valentino Garavani, with a con- interested in the bottom-line of ’’ This was a move that marked a temporary and sophisticated a future sale.” turning point for Italy’s designer vision, has been instrumental Various investment vehicles fashion business and was her- in enhancing the brand’s rel- from the Arab state have been alded as the first true marriage evance and establishing a plat- on a spending spree in luxury of fashion with finance in Italy. form with significant future and retail the past few years. “I am one of the first designers potential. Our vision is to back Investment house Qatar in Italy to do this,” said Valentino management for the long term Holding LLC, which was estab- at the time, referring to his de- to exploit the full potential of lished in 2006 and invests on be- cision to sell his company to a this exciting brand. We believe half of the State of Qatar as it is financial giant to assure both Valentino is ideally suited to linked to the Gulf nation’s royal further development and contin- form the basis for a global luxu- family, took control of Harrods Pierpaolo Piccioli and Stefano uation of his label. The designer ry goods powerhouse.” for a reported $2.22 billion in Maria Grazia Chiuri Sassi famously broke down during the Sassi remarked on the “re- 2010; it has a 1.03 percent stake announcement of the sale. cent, very strong acceleration of in LVMH Moët Hennessy Louis The total value of the trans- interest in the company, which Vuitton and a 5.2 percent share action was placed at about $233 has evidently catalyzed the at- in Tiffany & Co. It also bought 26 million, three times the house’s tention with several investors percent of British supermarket direct revenues at the time. focused on an acquisition.” J. Sainsbury in 2010. Last year, After four intense years, a new Both the designer and According to sources, Spain’s Qatar became the largest share- Giammetti stayed on at the com- Puig and Swiss luxury goods holder in French media group phase opens up and we are pany, treated to lavish fringe firm Labelux Group were also Lagardère SCA, with a 12.8 benefits, including personal pursuing the Rome-based percent stake. planes and a $5 million yearly fashion house. “This is a win-win situ- offered a chance to push forward consulting contract. Garavani’s longtime business ation for Valentino,” said Despite a promising start, partner, Giancarlo Giammetti, Armando Branchini, deputy the firm languished in the red said he and the designer were chairman of Milan consultancy with additional resources. under HdP. “extremely happy and very re- InterCorporate. “It recognizes To strengthen its presence in lieved. This is a brilliant result the management’s work over the — STEFANO SASSI, VALENTINO SPA the worlds of luxury goods and obtained by an unquestion- past few years, and it’s an injec- retailing, in 2002 textile giant able prestige of the brand that tion of support and confidence company such as Valentino de- tect David Chipperfield. Marzotto bought Valentino for we created, and equally to the in Sassi and the designers.” served. They behave splendidly, The priority this year and $210 million, a sum that includ- work of the two designers and Branchini said Qatar holding and having seen their work with next, as well as partly in 2014, is ed the firm’s net debt of $179.2 the ceo.” And taking a some- has a longer-term interest in the Harrods, it makes me think of to revamp Valentino’s network million. The deal included lu- what surprising shot at fashion’s business, a change, he said from this deal in a very positive way. of stores along the lines of the crative contracts for Valentino more excessive inclinations, he a private equity fund, which is If only there were more of these new concept, with investments and Giammetti. complimented Sassi, Chiuri and always looking to cash out. Based investors....There is an entrepre- of 30 million euros, or $39.7 mil- In 2005, Marzotto spun off its Piccioli for creating “a work on experience with funds con- neurial strategy and they know lion, in 2012, and the same fig- fashion interests, which includ- based on modesty, without the trolled by Qatar, he praised their the luxury sector,” he concluded. ure the following year for redo- ed Hugo Boss, into a new group usual commotion such as pre- ethics. “These are investors a Vittorio Missoni, who heads ing existing stores and opening called Valentino Fashion Group the family-owned business, was new ones. ’’ and in July of that year started equally optimistic about the fu- Over the next three years, the trading shares of the new group, ture of the M Missoni license company plans to unveil 40 to valued at close to $1 billion, on and VFG. “I believe this will 50 stores in new markets, such the Milan Stock Exchange. bring fresh oxygen to the group as Brazil, and Sassi sees con- In 2007, Permira bought VFG and consequently will also help tinuing opportunities in China, at the top of the market for an develop M Missoni,” he said. The where there are already 20 estimated $3.5 billion, after a executive added that he never stores. A unit opened in Beijing bidding battle with private eq- worked with Permira but only in December. uity fund Carlyle Group, which with Sassi and does not expect The store on New York’s had linked with VFG chairman that to change. “It’s always been Madison Avenue is the next in Antonio Favrin and his compa- a fruitful collaboration and Sassi line to be revamped and will re- ny, Canova Partecipazioni Srl, to has really helped M Missoni open this year. buy the Marzotto family stake. grow, contributing to a clear dif- Sassi said Valentino closed The prize appeared to be ferentiation of the brand, com- the first half of the year with Hugo Boss, VFG’s cash cow. pared with the signature label, revenues of 186 million euros, Valentino’s delisting was com- and making it a healthy, sound or $240 million at average ex- pleted in 2008 and, in December business,” explained Missoni. change, up 23 percent compared 2009, Red & Black Lux reor- The label reported wholesale with the first half of 2011. ganized the group’s structure, revenues of 53.9 million euros, Last year, earnings before in- separating ownership of VFG, or $75 million, last year. terest, taxes, depreciation and Valentino and its licensing arm The sale takes place as amortization totaled 22 million from the Hugo Boss business to Valentino marks its 50th an- euros, or $30.5 million, versus achieve strategic flexibility and niversary and its bottom line 7.5 million euros, or $9.9 mil- for future partnerships — a move continues to improve, lifted by lion, in 2010. This compares which sources also viewed as a iannoni

g a rejuvenated product range with a loss before interest, smoother way to part with the and growth across all catego- taxes, depreciation and amor- Valentino brand. ries and regions. Valentino has tization of 9.5 million euros, or Valentino the designer re- iovanni g been strengthening its struc- $12.6 million, in 2009. mained on board, as well as ture and developing its retail Last year, revenues reached Giammetti, until his retirement and wholesale channels and the 322 million euros, or $447.5 mil- in January 2008, six months

couture by Web business, expanding differ- lion, up 18 percent compared after the lavish celebrations in D ent divisions such as men’s and with 2010. Rome in 2007, which marked accessories, and restructuring This is only the latest in a the 45th anniversary of the its license portfolio with new number of recent high-profile house. Alessandra Facchinetti, eyewear collections by Marchon acquisitions in Italy, including former head of women’s wear an tri; grazia S and new fragrances with Puig. LVMH taking control of Bulgari at Gucci, succeeded as cre-

Mae ative director, but exited the e In February, Valentino un- last year; PPR buying high- D veiled a new store concept, end men’s wear brand Brioni; company in October 2008. The

Davi based on a Roman palazzo, on Dubai-based Paris Group secur- baton was passed to Chiuri and by Milan’s Via Montenapoleone, ing the Gianfranco Ferré brand, Piccioli, who had worked beside Fall couture looks the first flagship to reflect the and Paris-based investment Garavani for 10 years and estab- photo i design aesthetics of Chiuri and fund Eurazeo buying Moncler. lished the brand’s successful ac- from Valentino. SS

Sa Piccioli, who worked with archi- It also marks the fifth change cessories division.

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SPONSORED BY 6 WWD FRIDAY, JULY 13, 2012 beauty A New Spin on Lady Gaga’s Fame

and has incense; the sensual accord in- artist. there’s nothing commercial about that the gold-toned cap with extended By Julie NaughtoN and cludes honey, saffron and apricot nectar. it except it’s intending to be commercial, metal pieces is intended to resemble Pete BorN the light accord features crushed tiger which is harder to do — but in the end, the points of a claw. “the [bottle] design orchid and jasmine sambac. together, the rewards are greater.” is simple and elegant and has a prestige BeiNg a worldwide celebrity has the notes read as a fruity floral focused eaux de parfum in three sizes will be feel and look, but it has symbols that are both dark and light aspects to it — and around belladonna, said Mormoris. offered. the 100-ml. — which gaga refers disruptive and [so] her. it’s not of the with her new scent, lady gaga Fame, one (welcome news to her fans — when she to as the ultimate Masterpiece (these moment and trying to shock you, but a of the world’s most famous entertainers announced the deal, gaga had visions of words are also printed on the bottle) — very eternal, timeless classic fragrance is exploring both. blood and semen notes.) retails for $79, while the 50-ml. is priced message because gaga saw this as part “Fame is an illusion — if you really “lady gaga talks about how her music at $55 and the 30-ml. will cost $42. a 10- of her artistic legacy.” want it, anyone can have it,” gaga told has a sweet center and a dark shell ml. rollerball version will sell for $19. the collection will also include three wwd via e-mail of the concept for the and a lot of her music has refrains that the ultimate Masterpiece is gaga’s ancillaries. Black Soap, $15, will be out fragrance. in august in limited distribution, while a and heaven forbid that the scent be black shower gel, $25 for 200 ml., and a ordinary in the least. lady gaga Fame, black body lotion, $30 for 200 ml., will be which will be released globally in late on counter in November. august by the artist’s haus laboratories the ad campaign, which will begin and fragrance licensee Coty, is black in running in September fashion, beauty the bottle, but the liquid sprays clear and and lifestyle magazines including Vogue, is invisible upon becoming airborne. harper’s Bazaar and elle, was shot by “lady gaga joins a legendary cast of Steven Klein and includes double-page talent for whom Coty has created scents,” spreads and single pages. tV is in the said Bernd Beetz, chief executive officer plans, and Klein also worked with gaga of Coty inc. “gaga’s launch represents my to create a three-minute feature film personal credo brought to life....innovate promoting the scent, which will appear or die! absolutely everything about this online in the u.S. while executives de- launch is innovative, from the bottle, to clined to comment on advertising and the juice, to the lady herself....She’s zeit- promotional spending, industry sources geist in a bottle.” estimated the warchest at about $30 mil- “She is an artist that is never satisfied lion globally in the scent’s first year. gaga with the status quo — she always has this is also scheduled to make personal ap- way of challenging everybody and trying pearances in promotion of the scent glob- to do something more, something differ- ally, with retailers and timing still being ent,” said renato Semerari, president planned. gaga will also host a party of Coty Beauty. “She has her own ideas Sept. 13 at the guggenheim Museum in and very often they’re very interesting New York to introduce the scent to the and challenging...really, she’s not the media. while keeping mum on specifics, one who says, ‘it’s oK, let’s move on and Semerari quipped, “there will be the-

turn the page.’ She’s always thinking, ater...she’s not the kind of person who ‘Can we do more?’ this is a very stimu- just shows up and says hello.” lating partnership; and she’s pushed us lady gaga Fame will be carried in with her ideas, we’ve come with our own about 3,000 department and specialty ideas — and the combination of the two stores in the u.S. — including Macy’s, is very valuable.” Bloomingdale’s, Saks Fifth avenue and

“it is the first-ever black eau de parfum Sephora — and in about 30,000 doors and we use language like ‘black like the in total globally in 84 markets. in the soul of fame but invisible once airborne,’ u.S., the scent will enter what Mormoris which makes the fragrance an allusion to calls tier one department stores (such as the dark side of fame, the price of fame Macy’s) first, followed six months later by and the narcissism of fame,” said Steve tier two doors such as ulta and Sephora Mormoris, senior vice president of glob- ’’ in J.C. Penney locations. Mormoris em- al marketing for Coty Beauty. “the soul phasized that the scent “will never be a of fame being black was the intellectual mass-market fragrance.” foundation of the color of the fragrance.” while gaga and executives declined Not to mention a difficult task to ex- to comment on projected sales, industry ecute. “it was a technical challenge for sources estimated that the scent would our labs, but we worked with the fra- achieve net sales globally of $100 million grance suppliers and we ended up cre- in its first year on counter, with at least ating very proprietary new technology,” 30 percent expected to come from u.S. said Mormoris, declining to go too far sales. while Coty declined comment on into the scientific explanation. gaga’s compensation, industry sources the juice’s structure is also unusual, estimated that gaga has been guaranteed Mormoris said. “it’s unique because it’s a minimum of $15 million in royalties in not pyramidal with a top, middle and bot- a three- to five-year deal. tom note,” he said. “it has a trampoline when asked whether gaga’s new structure — notes are rising at different fragrance could anniversary the huge rates that are quite random. Some ac- numbers ($39 million at retail) racked cords will come out if you rub it, other ac- up last year by Justin Bieber’s women’s cords will come out later. it has random fragrance, Muriel gonzalez replied, “we propulsion and doesn’t have a classic lin- Fame is an illusion — if you really want it, think so.” the executive vice president ear drydown. we call it push-pull, and it and general merchandise manager of will smell different on different people. anyone can have it. cosmetics, fragrances and shoes at Macy’s there is a different volatility for different inc., continued, “we think that lady gaga notes, and they’re of differing strengths. — LADY GAGA has got a huge following. She’s been so they work together harmoniously, but personally involved, which the Coty peo- then they undergo metamorphosis on the ple will tell you, in every aspect of the skin, so you’re constantly surprised.” have a rough passage that go toward a “pure vision” for her scent brand, com- fragrance from its color, to the bottle to lady gaga’s requests for unconven- sweet-spot melody in the middle,” said plete with a heavy, clear glass, egg- the material’s use. it is going to be a huge es tional scents “showed me how intellec- Mormoris. “She referenced that a lot and shaped bottle and a weighty gold-claw- advantage, because she is so involved G

tually curious she was and that she had we tried to capture this type of duality inspired cap, and a number of doors will with the project that she will be tweet- Ima no boundaries,” said Mormoris. “She was in the fragrance, with the incense and be carrying that size exclusively, said ing her fans, her little Monsters. i think challenging us and herself to see what something sweet like apricot. Mormoris. the smaller sizes are said they are going to be very curious about it. she can do that’s unique.” “lady gaga wanted an artistic fra- to be intended to make the collection the project is very, very well done. all of Perfumers richard herpin, honorine grance,” continued Mormoris. “She’s financially accessible to all of gaga’s these celebrity fragrances have been very Blanc and Nathalie lorson of Firmenich quite poetic, she references modern art fans. gaga worked with Nick Knight successful for us in bringing in customers worked with gaga to create the juice, a lot and of course music, and she has to design the bottle. “lady gaga con- to Macy’s. Some of them are new custom- which has three main accords: dark, sen- a very distinct aesthetic sense, so she’s ceived this egg idea back’’ at the grammy ers — new to fragrance, new to Macy’s — Denholm/Getty Graham sual and light. the dark accord was in- really looking for a high-quality crafted awards where she came out of an egg, and we think this will be no exception.

spired by belladonna, the deadly plant, product that expresses who she is as an so it’s symbolic,” said Mormoris, adding we think it will be very big.” Photo by

w13a006b(7);8.indd 1 7/12/12 7:55 PM 07122012195622 WWD.COM Shakira to Launch Elixir FALL SHaKIra IS getting sensual have a two-month exclusive and tapping into a younger de- An ad for beginning later this month, EvEnts mographic with her newest Shakira’s after which the scent will enter scent, elixir. Elixir. Walgreens, CVS and other mass- “after my first two fragrances, market doors in September. It Calendar I wanted to do something dif- will also be carried globally in ferent — I wanted to push the major markets, including latin idea even further and develop america, Italy and eastern a fragrance that would express europe, according to Puig. my most sensual and exotic The bottle, clear glass with side, and elixir is the result of a gold-toned neck, is inspired that,” the entertainer said. “We by classic apothecary bottles, worked on the concept of a ‘sec- said albesa. Colombian artist ond skin,’ a fragrance that be- Catalina estrada designed the comes a part of you.” outer box, which features a fan- “This scent is aimed at a ciful design that incorporates CeW youthful consumer who wants to birds, leaves and a teardrop explore her power and her mys- shape on a pale background. tery,” said Jose Manuel albesa, Industry sources estimated chief brand officer of Puig, that the scent would do about Beauty InsIders ChoICe Shakira’s scent licensee. $14 million at retail globally in awards entrIes The scent — which was cre- its first year on counter, with ated by perfumers alexandra white cedarwood, amber, ben- about 20 percent of that expect- 8.27 entry Deadline: september 28th Kosinski and Sonia Constant zoin, sugar cane and musk. ed to be done in the U.S. of Givaudan in collaboration eaux de toilette will be avail- The ad campaign, which fea- CeW.oRg/Beauty with Puig perfumer elisabeth able in three sizes: 0.5 oz. for $17.50, tures a sultry Shakira in a long Vidal — has top notes of neroli, 1 oz. for $29 and 1.7 oz. for $36. skirt, was shot by Jaume de white pepper and white flower; In the U.S., the scent will laiguana in Morocco. Globally, newsmaker Forum: inside the C-suite a heart of freesia, peony and be available in about 19,000 both TV and print are planned. apricot skin, and a drydown of doors. Kohl’s and Sears will — J.N. Coty – the GloBal 9.12 Beauty leader Michele scannavini, Coty Prestige & Sephora Opens Store in Brazil Renato semerari, Coty Beauty HaRMonie CluB, nYC sis on glamour fueled 13 per- “The brazilian customer knows By Holly Haber cent compound annual growth our product. It’s hard to shop com- > 5:30 pm networking + Cocktails in beauty, soap and hair care plexion on a Web site, and they > 6:30 - 7:30 pm Program DallaS — Sephora has great from 2005 to 2010, noted Hana are buying it first and foremost.” expectations for its first brazilian ben-Shabat, a partner at the Prices are higher in brazil store opening today in São consulting firm. Volume hit $34 due to tariffs, and the site in- Paulo’s new JK Iguatemi mall. billion in 2010, eclipsed only by vites shoppers to pay in 12 in- Women & Men in Beauty series “Prestige penetration was the U.S. and Japan. stallments for many products Beauty retaIl evolutIon: really limited until now, but the The store’s 3,800-square foot including MUFe’s bestselling brazilian market is very well in- space presents more than 100 HD Microfinish Powder, which 10.25 ConneCtInG wIth formed about brands and prod- brands and at least 15 prestige is priced at about $65.43 com- ucts and is really eager,” said labels exclusively, including pared with $32 in the U.S. today’s Consumers Paula larroque, general man- Make Up For ever, Nars, Urban Since the mall’s opening was shannon Curtin, Walgreens ager and senior vice president Decay, benefit, Stila and Kat delayed repeatedly, Sephora of latin america for Sephora Von D, with more to come. Its planned its opening later to ensure Karen grant, The nPD group americas. “We know we are 300-foot glass facade is highly no snafus for opening events in- bringing something they have visible within the mall. cluding a cocktail party Thursday Chance Wales, amazon.com been expecting for a long time.” Most Sephora stores stock with local celebrities and many in- She plans to add four more about 200 labels, and the gradual ternational brand executives. HaRMonie CluB, nYC units in São Paulo this year and rollout of brands in São Paulo is The beauty chain is also ex- > 5:30 pm networking + Cocktails about 30 more in brazil by 2016. largely due to the brazilian gov- panding in Mexico, where it Christopher de lapuente, ernment’s rigorous and time-con- opened its first unit last october > 6:30 - 7:30 pm Program global president and chief execu- suming registration process for in Mexico City. Its fifth store tive officer of Sephora, added, “I cosmetics, larroque explained. opened July 5 in Mexico City, grew up in brazil so I know just Sephora’s brazilian entry and two more are due there by aChIever awards how fun and exciting this market began two years ago when parent yearend, giving the chain five can be. brazil is one of the biggest company lVMH Moët Hennessy stores in Mexico City and one WalDoRF=asToRia,nYC beauty markets in the world, and louis Vuitton bought Sack’s, the each in Guadalajara and Puebla. 11.2 we know how much brazilians nation’s biggest beauty e-tailer. The company’s Mexican Web > 11:00 am networking + Cocktails love shopping in Sephora from the “We know from our experi- site is strictly informational but numerous tourists in our French ence on Sack’s that there is a could be developed next year > 12:00 - 2:00 pm luncheon + Program and North american stores.” great desire for our brands and for e-commerce, she said. brazil is the third largest products, many of which have “It’s part of our expansion beauty market in the world and never been sold in the market plan, but we decided to position Beauty of GIvInG the fastest growing, according before,” larroque noted. our brick-and-mortar experience to a study released in March by “We are thrilled with the re- and brand into the market…and lunCheon & lIve auCtIon a.T. Kearney. Its emerging mid- sponse,” said J.P. McCary, MUFe then in the second phase develop 12.7 Benefitting Cancer and Careers dle class and a cultural empha- general manager of the americas. e-commerce,” larroque said. WalDoRF=asToRia,nYC > 11:00 am networking + Cocktails Target Tests Beauty Adviser Service > 12:00 - 2:00 pm luncheon + Program

lyze the sweet spot from where Concierge logo on her apron, will By Molly PrIor we should expand nationally.” man a small kiosk in the beauty Target has previously incorpo- department and be armed with TarGeT IS making room for a rated service in its beauty depart- a mirror and an iPad. They will es To RegisTeR, Join CeW G new hire: the multibrand beauty ment, outfitting 300 boots displays dispense samples, tips and advice

Ima adviser. with advisers to tout the brand.b ut primarily across the skin care and on Sunday, the mass mer- advisers in the beauty Concierge makeup categories, according to chant will launch the Target program are brand-agnostic and Target. Target — known for its oR FoR MoRe inFo beauty Concierge program in trained on key products across all prowess in pushing the boundar- 28 stores in the metro-Chicago beauty brands in the assortment. ies of the traditional mass market area. The initiative is a nine- To start, there will be 14 advisers, beauty experience —zeroed in on month test that could potentially with each assigned to two stores the Chicago area for this test be- Denholm/Getty Graham expand to 400 to 450 stores, said during their 40-hour work week, cause it includes all its store for- a Target Corp. spokesman. He said the spokesman. each adviser, mats and a broad cross-section of CEW.ORG Photo by said the test “will help us ana- clad in black and wearing ab eauty consumers, said the company.

w13a006a(7);7.indd 2 7/12/12 7:05 PM 07122012190700

8 WWD FRIDAY, JULY 13, 2012 WWD.COM

By DAVID MOIN Nordstrom Sets Up (Top)shop

Through its deal with Topshop, Nordstrom will take a trendy turn this fall — and hope- {Continued from page one} tailer has a stronger reputation for Nordstrom to distribute to selling upscale traditional and Topshop fully turn its women’s fashions faster. ’’ On Thursday, the two retailers announced that Topshop will open Sept. 10 inside 14 shoppers determined by the classic styles. mannequins. Nordstrom locations spread across the U.S. department store’s database Nordstrom said he expects Each Nordstrom store will install a 2,500-square-foot Topshop for women’s and a who would be prone to buy- that Topshop will generate 1,500-square-foot Topman rigged with flashy mannequins, fixturing and lighting, and ing the Topshop look, and live higher productivity than the stocked with the British brand’s edgy, shaggy fake fur coats, cropped biker jackets, short within striking distance of stores overall, which last year sequined skirts, cheetah print T-shirts and trim-fit tailored men’s jackets, among other Nordstrom’s Topshops. posted $431 in sales per foot on items. While Nordstrom said he’s average. He declined to specify “We think our customers are going to love their take on trend-led fashion at great not creating “hard shops,” the Topshop’s projected sales. prices,” said Pete Nordstrom, Nordstrom Inc.’s president of merchandising. “But this is Topshops will still stand out Asked what motivated not a price play. It’s really a trend and fashion play.” from the rest of Nordstrom’s sell- Nordstrom to link up with “I believe Topshop and Topman departments offer the Nordstrom customer some- ing floors, which tend to be open Topshop — two brands with thing very different and unique with our signature British fashion authority,” said Sir in character, divided by depart- different images — Nordstrom Philip Green, owner of U.K.-based Arcadia Group, which owns Topshop and Topman. ments rather than in-store shops. said he believed there’s a grow- In an interview at the Topshop flagship in New York’s SoHo, Nordstrom and Green The $11.2 billion Nordstrom, ing awareness of Topshop in the said they formed “a partnership” that transcends typical wholesale-retail relationships. Nordstrom will select and edit from Topshop’s extensive and quick-changing assort- ment, but will also be receiving some specially designed products, such as “premium” dresses for a dressed-up look. There will also be a catalogue just This is a test for us. We want to really do good so we do have a chance to be exclusive. — Pete Nordstrom, Nordstrom INc.

which operates 117 full-line U.S. He also said he’s impressed stores, the Rack outlet division by Topshop’s “speed to market

and e-commerce, will also sell and great inventory control. Topshop merchandise on its Web Newness and full price drives it site, which currently does over for us.” New styles will be flow- $1.5 billion in annual sales, and ing in weekly to Nordstrom. hopes to bring Topshop to many At Topshop, products do get more of its stores. marked down to make way for

For the Seattle-based the frequent distribution of Topshop will occupy as much as Nordstrom, Topshop represents fresh styles weekly. However 30,000 or 40,000 square feet. a bid to perk up its women’s Green stated, “We’’ are not pro- Nordstrom has no thoughts business which has been soft for moters. We are a full-price fash- of going anywhere near that big several seasons. Nordstrom, in ion business.” with its Topshops, and for good a few locations, has a new wom- The British brand is also reason. “We don’t have all kinds en’s format offering different known for nurturing young de- of extra space. For’’ us, it’s an ed- adjacencies and a reimagined sign talent such as Christopher iting question,” said Nordstrom. format. It remains to be seen Kane and Mary Katrantzou, and His department stores average whether it will be rolled out to has an average price point of 160,000 square feet, whereas more locations. $75, though dresses can be a few The Bay has seven flagships that Topshop also represents a hundred dollars. are four to six times as large. dramatic merchandising shift For Topshop, Nordstrom Another distinction between toward younger, edgier product, represents a leap forward in the two Topshop deals in North and will require some editing advancing its North American America is that The Bay has on Nordstrom’s selling floors expansion. This year, Topshop a franchising arrangement, to make room. Nordstrom does began building large shops in- unlike the partnership with have a trendy side, selling ju- side The Bay department stores Nordstrom. Asked if Topshop niors and contemporary mer- in Canada. Most are planned was selling exclusively in the chandise in departments called at 7,000 to 10,000 square feet, U.S. to Nordstrom, Green said, Savvy, TBD and B P, but the re- though at a few flagships, “It’s exclusive until we agree it

Pete We continue to Nordstrom and Sir Philip Green be very careful. It’s taken us a couple of years to chinsee george

Models in by understand the the clothing. markets properly. photos taken us a couple of years to un- materialized. — sIr PhIlIP GreeN, derstand the markets properly.” Nordstrom full-line store He said the SoHo flagship, lo- locations that will feature toPshoP cated at 780 Broadway, is track- Topshop and Topman in- ing over 20 percent ahead this clude Ala Moana, Honolulu; isn’t exclusive.” year. “That shows we under- Oakbrook Center in Oakbrook, “This is a test for us,” stand the market.” Ill.; Barton Creek Square in Nordstrom added. “We want to Green assured that the Austin, Tex.; Phipps Plaza in really do good so we do have a Nordstrom deal does not in any Atlanta; Burlington Mall in chance to be exclusive. We want way derail expansion via free- Burlington, Mass.; The Plaza to earn that.” Topshop’s expan- standing stores and said that at King of Prussia in King of sion in the U.S. via freestand- 15 to 20 flagships are seen over Prussia, Pa.; Chandler Fashion ing stores has not been rapid. the next five years. Nordstrom Center in Chandler, Ariz.; Since opening the SoHo flagship would represent different geog- San Francisco Centre in San in 2009, only two’’ others — in raphies from his own stores. Francisco; Dadeland Mall in Las Vegas and Chicago — have Green also said that there are Miami; South Coast Plaza in opened, though a fourth store no plans to sell Lord & Taylor in Costa Mesa, Calif.; Garden is scheduled for Los Angeles the U.S., which like The Bay is State Plaza in Paramus, N.J.; in spring 2013. “Many good re- part of the Hudson’s Bay Co. A Southcenter in Tukwila, Wash.; tailers get killed going into few years ago, Green was in con- Irvine Spectrum Center in new markets,” Green said. “We tact with Bloomingdale’s about a Irvine, Calif., and Valley Fair in continue to be very careful. It’s possible partnership but nothing San Jose, Calif.

w13a008a;5.indd 1 7/12/12 7:47 PM 07122012194806 BOOK SMART: Freida Pinto talked literature at the New York premiere of “Trishna.” WWDSTYLE PAGE 11 MEMO PAD

ISN’T IT RICH?: For French President François Hollande, a Socialist who has vowed to extract more tax revenues from Tropic Wonder the rich, it must be an intoxicating read: On Thursday, business weekly Challenges released its annual ranking of the 500 biggest fortunes in France. LOS ANGELES — Burlesque star Dita Von Teese showed off Once again, figures from fashion her latest number, a Forties cabana-inspired routine, and its and retail figure prominently, with luxury titan Bernard Arnault, chairman Jenny Packham-designed costume poolside at the Beverly and chief executive officer of LVMH Hills Hotel on Wednesday. For more, see page 10. Moët Hennessy Louis Vuitton, still ranked number one with a fortune estimated at 21.2 billion euros, or $25.99 billion at current exchange rates. Gérard Mulliez, whose family controls the retail conglomerate Auchan, remains comfortably lodged in second place with a fortune of 18 billion euros, or $22.06 billion. The Dumas, Puech and Guerrand families, which control Hermès International, moved up one spot in the ranking to number three (17.4 billion euros, or $21.33 billion), while L’Oréal heiress Liliane Bettencourt slipped one notch to number four (15.3 billion euros, or $18.75 billion). François Pinault, whose family controls PPR, slipped one spot to sixth place (6.3 billion euros, or $7.72 billion), while Chanel owner Alain Wertheimer and his family held on to eighth position (5.6 billion euros, or $6.86 billion). Other fashion types who made big leaps on the list include the Cassegrain family, owners of Longchamp (at number 55 with a fortune of 750 million euros, or $919.3 million), and Thierry Gillier, founder of Zadig & Voltaire, part of a four-way tie for 104th spot with a fortune of 420 million euros, or $514.8 million. — MILES SOCHA MARIO SORRENTI PHOTO BY Mila Kunis for Miss Dior.

L.A. WOMAN: Returning for a second Dior campaign in support of the Miss Dior handbag, actress Mila Kunis slipped into the skin of a Fifties Hollywood star — a bouffant hairstyle accentuating the glamorous, retro mood. The black-and-white spots, photographed in Los Angeles by Mario Sorrenti with styling by Carine Roitfeld, depict Kunis as the kind of woman accustomed to attention from throngs of paparazzi, and to smoldering in front of the camera. The young actress, who won wide acclaim for her turn in 2010’s “Black Swan,” is currently on screens in the Seth MacFarlane comedy “Ted.” The worldwide campaign for Dior is to make its debut in the August issue of Elle Hong Kong on July 21, followed by a range of September issues, including Bazaar and Tatler in the U.K., Vanity Fair in the U.S. and Vogue Paris in France. Dior also plans to unveil the images, along with behind-the-scenes PHOTO BY DONATO SARDELLA imagery and mini film, on its Miss Dior Web site as of Wednesday. — M.S. 10 WWD FRIDAY, JULY 13, 2012

The scene poolside at the Beverly Hills Hotel, where eye synchronized swim troupe DITA VON TEESE went back in was seeking. by her friend and fellow the Aqualillies performed. time to conjure up Forties “When Dita described burlesque dancer Catherine silver screen icons Betty Grable her performance to me, I was D’Lish, who has helped create and Carmen Miranda for her hooked,” said Packham in an the looks for nearly all of Von latest act, which she performed e-mail from London. Teese’s numbers over the past 12 Wednesday night at the launch “The outcome is seductive years. The music, composed and of the Cointreau Summer and glamorous in a totally arranged by Chuck Henry, included Soiree series at the Beverly tropical Rita Hayworth style. classic Martin Denny tunes. Hills Hotel. The pool deck, Dita always takes [my dresses] Von Teese said she’ll add where a crowd that included to another dimension, so the number into her permanent Mary-Louise Parker, Jeffrey Deitch it has been very exciting repertoire, which she is Pool Report and Ellen von Unwerth showed to collaborate.” currently taking on the road in up to watch, was appropriately Von Teese had equal praise an hour-and-a-half-long revue vintage as the hotel celebrates for Packham: “It’s not easy to called “Strip Strip Hooray.” its centennial this summer. For create stripper costumes, and “This will be the last new her brand-new costume, Von she did a great job because when number for a little while because Teese enlisted London-based each piece comes off it creates each one costs between $50,000 designer Jenny Packham, whom a new look.” The creation has and $100,000 to create,” she said. she met last year. eight pieces, including a long But Von Teese is keeping “I’d been wearing a lot of her skirt, a sarong, a bolero jacket, a busy with her other creative dresses on the red carpet because crystal headpiece, a beaded bra, endeavors, including launching I really like the beadwork, beaded corset, orchid panty and her second fragrance in Europe crystals and embroidery, so mini bra. and her dress line, Muse by when we met, I told her, ‘Some “We did the mini bra to Dita Von Teese, at Decades in Jeffrey of your dresses would make make the show PG for America, Los Angeles this fall. She also Deitch and great stage costumes,’” said the because they don’t always has a lingerie line in Australia Ellen von burlesque dancer. understand the pasties and and a makeup line in Germany. Unwerth So Packham watched some G-string,” said Von Teese. “I feel like I have ticked all the

Mary- SARDELLA DONATO of Von Teese’s favorite films, The shoes were Christian boxes of products I can speak Louise “Moon Over Miami” and “Down Louboutin embellished with about strongly,” she said, adding, Parker Argentine Way” to get a feel for Swarovski crystal orchids and “There’s no jeans line of course.”

PHOTOS BY the Forties tropical vibe she the feather fans were designed — MARCY MEDINA

The Artist Was Not Present Anne Hathaway Hits in Dolce & YAYOI KUSAMA — the prolific nodded authoritatively. Gabbana. Japanese artist who has had “ Yo u can do that?” Lauren her hands in the conceptual, Santo Domingo asked, queueing feminist, minimalist, with her husband, Andres, Parade surrealist, Pop and abstract Olympia Scarry, Sofia Coppola art scenes since her and newlyweds Margherita appearance in New York in Missoni and Eugenio Amos for ABOUT HALFWAY through the Fifties — did not attend a the first part of the exhibition, “Shut Up and Play the dinner held in her honor by Kusama’s “Fireflies on the Margherita Hits,” James Murphy, the new Louis Vuitton at the Whitney Water” installation. Missoni and documentary’s primary subject Museum on Tuesday night. “ Yo u can live in a mental Eugenio Amos and the driving force behind the It was a preview of her institution and leave whenever near universally adored (and highly anticipated retrospective you want?” Santo Domingo now mourned) indie disco outfit at the museum, which spans six continued. “Maybe I’ll do LCD Soundsystem, discusses decades of her work and opens that....I’d feel so normal.” the band’s early ambitions. Thursday, running through The Whitney was done up “To leave a mark,” Murphy Sept. 30. Her absence was not in dots for Kusama, with a explains to his interviewer, entirely surprising. The artist pair of DJs in full polka-dotted the writer Chuck Klosterman. “To once, after all, called one of her Harajuku-girl getups and leave a stain.” works “I’m here, but nothing.” gigantic red balloons (also polka- It has been more than a She was exhausted, a Louis dotted) suspended above the year now since Murphy and Vuitton rep explained. There banquet tables on the garden company retired the band at its was the time difference from level, and the exterior lower very peak with a sold-out show MORELAND

Tokyo, and she’d been up since wall of the museum was covered at Madison Square Garden in LEXIE that morning for the unveiling in shiny crimson versions like a April 2011. “Shut Up And Play BY of the store windows. Several panel of buttons. Napkin rings the Hits,” which documents that

Louis Vuitton shops revealed were clasped with white and last show, the days leading up PHOTOS Marc Jacobs’ collaboration with red badges that read “LOVE to it and its fallout, had its New Kusama on Tuesday, their FOREVER — KUSAMA.” Diane York premiere on Tuesday night vitrines (and shoes, handbags, Kruger and Joshua Jackson admired at a Peggy Siegal Co.-hosted shirts, skirts and sunglasses) the decor from their seats. screening at Manhattan’s Village wrapped in frenzies of polka “I don’t know if the balloons East Theater. Judging by the

dots in her honor. Some windows are staying after tonight — Hannah STEVE EICHNER several-hundred-strong crowd, hold wax figures frightening in I’m only the director [of the Bronfman in which broke into unprompted their mimicry of her likeness, museum]…” Adam Weinberg Louis Vuitton. applause after several of the

right down to the orange-Skittle- laughed. “If they’re not, I’ve PHOTOS BY films’ titular hits, the mark or colored wig. There was also the got a 14-year-old daughter stain or whatever it is exactly Ruvan Wijesooriya, James Murphy, matter of Kusama’s wheelchair who’d love one.” mint julep and a performance by has very much set. Nancy Whang and Pat Mahoney. and all the excitement, and she As dinner, which was Blonde Redhead, Waris Ahluwalia The smaller crowd that does, after all, live in a mental cosponsored by W magazine, took to the fourth floor to survey moved over to the W Union favorite movies.” hospital most of the time, wound down and guests like the rest of the exhibition, Square for an after party at the Gerwig, who stood near a the rep added. Dianna Agron, Amy Sacco, Kaya pausing over Kusama’s letter to underground lounge Lilium corner booth with her hands in “She’s not coming tonight. I Scodelario, Martha Stewart and Scott Richard Nixon, which offered included Anne Hathaway, Aziz the midriff pockets of her agnès mean, she lives in a loony bin Campbell began heading upstairs him a sexual romp in exchange Ansari, David Chang, Noah Baumbach b. dress, offered some solace for in Tokyo — by choice,” Zac Posen to the lobby for silver cups of for ending the Vietnam war, and Greta Gerwig. Several of the those unfortunate enough to have her Sixties self-portrait LCD devotees on hand were missed the initial goodbye show. FOR MORE PHOTOS, SEE photographs, advertisements so stricken they essentially “It was magical,” she said. Dianna for her orgies and several of her saw the show twice. Hathaway, “But if you didn’t get to go to Agron WWD.com/eye. sculptures. Despite her awards, dressed in a black lace Dolce the concert, [the film] was a and Sofia her multiple major museum & Gabbana cocktail dress and good close second. The concert Coppola retrospectives and the records accompanied by fiancé Adam was so exciting. I mean I love in Louis she’s set for auction prices as Shulman, explained that they had the music, and I love James.” Vuitton. a living female artist, Kusama been to the MSG show. Murphy arrived about an still refers to herself in her “It was very different being hour into the proceedings autobiography, “Infinity Net,” as there, but they captured the wearing an immaculate white an “aspiring artist.” spirit of it beautifully,” the suit, white tie and white Ahluwalia smiled before actress explained. “I’m glad sneakers. After posing for heading back downstairs to they had such a good recording pictures with bandmates Nancy the party: “Well, that’s the only of the concert because they Whang and Pat Mahoney, he way to do it if you’re an artist. were all playing so well and was enveloped into the still You’re never finished. Once from the bottom of their souls. enthusiastic crowd. Everyone, that’s done, you’re done.” It was really special being there it seemed, loved James. — ALESSANDRA CODINHA and that just became one of my — MATTHEW LYNCH WWD, FRIDAY, JULYWWD 13, friday, 2012 july11 13, 2012 11 WWD.COM

i’m such an idiot!’ i’d never really thought to-measure tailored clothing program. of that,” Freida Pinto said on Tuesday at The shop is Gucci’s fourth in brazil, Fashion scoops the New York premiere of “Trishna” at with existing dual-gender units in other the iFC Center. “Now that i’ve read it a iguatemi-owned shopping malls in são second time,” the actress, who plays the Paulo and brasilia, as well as the Cidade title character went on, “19th-century Jardim shopping center in são Paulo. OLYMPIC OUTRAGE: Lawmakers on and Democratic leaders decried the England and 21st-century india — so There are no plans to open a men’s- Capitol hill lambasted the u.s. committee’s decision. Rep. Nancy Pelosi similar.…” The Michael Winterbottom- only store in the u.s., according to Gucci. Olympic Committee on Thursday for (D., Calif.), house Democratic leader, directed film is a reinterpretation of — DAVID LIPKE dressing American Olympic athletes in said the nation’s Olympic athletes Thomas hardy’s 1891 novel “Tess of the clothing and uniforms manufactured in should be “wearing uniforms that d’urbervilles” set in contemporary india. China and failing to support American are made in America,” while House The story centers on Pinto’s Trishna, a apparel and textile manufacturers. Speaker John Boehner (R., Ohio) said hotel maid from rural Rajasthan, as she Ralph Lauren Corp. is one of the the committee should have known explores issues of class, sexuality and sponsors providing casual clothing for better. in one of the most scathing urbanization in one of the world’s most the athletes attending the Olympics commentaries, Sen. Majority Leader Harry rapidly developing societies. “Freida’s in London and also dressing the Reid (D., Nev.) called for the Olympic just the perfect match,” said designer

Olympic and Paralympic teams for the committee to burn all of the uniforms Rachel Roy, whose label cosponsored FujiTa KaTaYasu PHOTO BY closing ceremony, according to news and start over again. the event with The Cinema society and reports. While Ralph Lauren is an iconic A spokesman for the usOC Circa. “i have a 12-year-old daughter, and American designer known the world defended the committee’s decision when i first saw some of Freida’s work, i over, the clothes designed for the u.s. Thursday, saying the u.s. Olympic immediately brought her to see it. There Olympic athletes were reportedly Team is privately funded and is are very few reflections in the world, at made in China, not the u.s. grateful for the support of its sponsors, that level, that she can look at and see a A Ralph Lauren spokesman including Ralph Lauren, according to reflection of herself.” — JAKE FLANAGIN declined to comment on the news reports. — KRISTI ELLIS Uniqlo workers give out T-shirts. controversy brewing in Washington. GUCCI FOR GUYS: brazilian men will get a Following reports that American COMPARATIVE LIT: “The second time i Gucci store of their very own on July 21 FREE FOR ALL: in an effort to get potential athletes will be kicking off the 2012 read the book, i was like, ‘Oh my gosh, when the luxury brand opens a men’s- customers hooked on its cooling Olympics in uniforms made in China, only store in the new JK iguatemi mall innerwear products, uniqlo gave away Sen. Kirsten Gillibrand (D., N.Y.) and Rep. in são Paulo, which opened its doors some 70,000 T-shirts and camisoles to Steve Israel (D., N.Y.) sent a joint letter last month. The 3,600-square-foot shop passersby at 29 busy Tokyo train stations to Lawrence F. Probst, chairman of the will be Gucci’s sixth men’s-only location, and an upscale shopping mall during usOC, expressing outrage over the following men’s shops in seoul, Tokyo, morning rush hour on a particularly decision and calling on the committee shanghai, beijing and Paris, all of which muggy Thursday. A company spokesman to produce uniforms in the u.s. by have opened since October. said uniqlo is hoping that once people try

American workers for Team usA for niCHOlasPHOTO HunT BY “brazil is a very important market the products, they will start buying them. all future Olympics. for Gucci, and with JK mall being The sarafine and silky Dry product “When America’s best athletes one of the most unique and luxurious lines are uniqlo’s summer versions of are representing our country on the shopping centers in the country, we felt its popular heattech series. Rather than world stage, we should be representing it was a perfect location to open our helping the body to retain heat, these the best of American-made goods,” first exclusively men’s Gucci store in the products are made from high-tech fabrics Gillibrand said in the letter. “The pride Americas,” said Gucci creative director designed to wick away perspiration and of our Olympic athletes goes hand- Frida Giannini, who oversaw the shop’s design control odors. in-hand with the pride in American concept. signature Gucci materials like Meanwhile, uniqlo also occupied a innovation and manufacturing. We marble and rosewood were updated with portion of the Roppongi hills shopping shouldn’t be going to the world stage Art Deco elements such as ribbed glass, mall. Temporary dressing rooms were with anything less. From head to toe, polished gold and smoked bronze glass. set up in the outdoor event space so Team usA must be made in America.” Gucci’s distinctive criss-cross Diamante people could try the products. The brand israel, in urging the committee pattern is etched on the shop floor. also offered shoppers a chance to try to reconsider its decision, said: “it A full range of men’s wear, accessories a spicy curry dish to boost their body is disgraceful that our American and luggage is available in the store, along temperatures and put the garments to the athletes will be wearing Chinese-made with a dedicated area for Gucci’s made- test. — KELLY WETHERILLE uniforms during the Olympics. We should be promoting American-made goods and supporting our domestic manufacturers and laborers.” in press briefings around the Freida Pinto Capitol on Thursday, Republican Avalon, Net Worth Merge For more career opportunities log on to WWDCareers.com. “There still is a tremen- By EVAN CLARK dous amount of money Spaces sitting on the sidelines in ThE busiNEss of buy- private equity funds and COMMERCIAL ing, selling and advising on corporate balance middle-market firms is sheets,” she said. “it may REAL ESTATE SEWING FACTORIES NEEDED Manufacturer looking for sewing facto- booming — so much so be a very busy time at ries in NY Area - steady work! Dresses,

PHOTO BY GeOrGe CHinsee PHOTO BY sportswear - fast turning, quality ori- that the dealmakers are the end of the year.” ented factories able to produce popular VP SALES, READY-TO-WEAR now getting into the game. Even though the priced garments. Contact: Sang 646- Minimum of 10 years of wholesale 366-7299| [email protected] luxury goods sales experience. Overall investment bank Avalon macroeconomic picture responsibility for the performance of Group and advisory firm has darkened in recent Showrooms & Lofts the RTW division. Candidate should BWAY 7TH AVE SIDE STREETS be polished, elegant, articulate, hard Net Worth solutions inc. weeks, the two said Great ’New’ Office Space Avail working and well organized. Team ADAMS & CO. 212-679-5500 leader with outstanding sales leader- struck a deal to merge and smaller firms have fared ship skills and exceptional analytical become Avalon Net Worth. better this year than they PATTERNS, SAMPLES, and project management skills. Salary PRODUCTIONS based on experience. Avalon, which has a have in some time and Full service shop to the trade. Email resume, cover letter and salary Fine fast work. 212-869-2699 background in the con- Jack Hendler and Lynda Davey that looming changes in history to [email protected] sumer and retail sectors, have struck a deal to merge the tax code have owners is a registered broker exploring their options their firms and create Avalon SALES ASSOCIATE dealer and better placed Net Worth. and considering estate Sportswear co seeks sales assoc for to both raise money and planning issues. discount chain store & dept stores. Must be highly organized, hardwork- serve public companies, while Net Middle-market vendors have come ing, computer proficient. Sal plus comm. Worth has a tighter focus on the fash- under increasing pressure in re- Email res to: [email protected] ion sector. Lynda Davey, chief execu- cent years as retailers consolidated. DESIGNER- GIRLS’ FASHION SIZE 7-16 tive officer and founder of Avalon, and hendler said the number of players has We are looking for a super creative and talented designer with girls’ apparel Jack hendler, president and founder narrowed and that not many wholesale experience in the 7-16 size range. of Net Worth, will lead the combined brands can survive with just $10 mil- Must have 5 + years of exp in a De- signer roll and exp managing a team. business as co-ceo’s. The companies lion or $15 million in sales. Exp working with an onsite sample have worked in the past with clients still, there is new hope for smaller room is a plus. Must be creative, pas- sionate & high energy. We offer a such as bill blass Outerwear, Joan & firms in an emerging business model. challenging, innovative and entrepre- David, London Fog, Jane Cosmetics and hendler said he’s starting to see more neurial work environment. Send re- sumes to [email protected] Frederick’s of hollywood. clients that have a limited revenue Visit our website www.kahnlucas.com “We can guide, advise and help to fi- base, but are more profitable because nance companies where the ultimate goal they use the internet to go directly to is an initial public offering,” hendler said. the consumer and therefore cut out the “Our bandwidth has been broadened.” costs of a traveling sales force and ad- (800) 423-3314, or email [email protected] Davey said the market is hopping. ditional samples.

w13a011a;6.indd 11 7/12/12 7:21 PM 07122012192202 12 WWD friday, july 13, 2012 WWD.COM

Sales at Carredour fell 0.3 percent We All Have Our Baggage in the second quarter. (Except When It’s Lost) i WAS AlMoST a one-percenter. Monday came and went, no bag. only Not that one percent. rather, a less twice-daily updates from the fabulous envied general population subset com- concierge staffers at the fabulous George prised of people whose luggage, when V, informing me that their repeated in- lost by an airline, is lost forever. quiries were coming up empty. i was liv- While there is no good moment to ing for 9 a.m. eS T, when i could get Alan have one’s luggage lost, the circum- at condé Nast travel on the case. Alan stances of my situation were particular- was told that no record of my bag ex- ly problematic — en route to the Paris isted, original computer baggage check couture. Bridget Foley ’s and subsequent lost bag case file number Carrefour Sales Slip Background on the contents of the lost Diary apparently notwithstanding. “Maybe,” bag: i am extremely disorganized and the person suggested, “she tried to carry tend to over-pack. couture falls during the bag on and it was too big so they France for the first time in more sale season in New York. Thus, on June 28, the day did a gate-check in and she got one of those pink, By Joelle DiDerich than a year. prior to my departure, i engaged in a considerable noncomputerized checks.” or maybe there was an he added that the sales de- wardrobe refresh at Barneys and Bergdorf ’s. My alien bag abduction, but improbable. PAriS — carrefour SA said sales cline at hypermarkets and su- bag contained multiple tags-still-in-place merch on Tuesday, July 3, i returned to my room fell 0.3 percent in the second quar- permarkets were due to the an- from lanvin, Jil Sander and Marc Jacobs, along at 10 p.m. or so to find a message from the con- ter as growth in emerging mar- ticipated effects of the action plan with a few additional current-season pieces and cierge that the bag had been found and would be kets failed to offset its continued announced by Noël Prioux, execu- virtually every other warm-weather designer item returned at some point that night or the next day. poor performance in austerity-hit tive director of carrefour France, i have that fits. And three clutches, one each from By Wednesday night, still no bag. Meanwhile, Southern europe and in its core in the second half of 2011. This Dior, Jil Sander and Michael Kors. happily, i’d Delta continued to insist to Alan that market, France. has led to a reduction in promo- sent my shoes via courier. the bag didn’t exist. carrefour, the world’s second- tions, in favor of an “everyday low i checked two bags at JFK, one big, one little. i’m shocked at the lack of communication largest retailer behind Wal-Mart price” strategy. My traveling companion, ed Nardoza, and i between Delta and Air France. (Apparently, com- Stores inc., posted sales of 21.71 “This inevitably has a near- then inquired about the lounge location in this puter input strategies are not a priority at Air billion euros, or $27.9 billion, in term impact on sales, but should unfamiliar terminal and were offered two op- France.) More shocking was a comment to Alan the three months ended June 30. gradually lead to improved tions: outside security or in another terminal, a on Friday, when i was back in New York, sans Dollar figures have been convert- performance along with an bus ride away. We passed. bag. With Delta still disavow- ed at average exchange rates for improved price perception,” carousel-side in Paris, ing knowledge of the bag’s the periods to which they refer. Sivignon said, adding that pric- only my small bag showed existence, Air France still on a constant currency basis ing image was the ultimate driv- up. At the Air France bag- “Maybe,” the maintaining it had been lo- and excluding gas, like-for- er of like-for-like growth. gage complaint center, the cated on July 2 (why it wasn’t like revenues fell 1.3 percent “i think the next two quarters woman i spoke with couldn’t person suggested, sent to the hotel as promised in the quarter. will have to show in a more clear have been lovelier. After the remains a mystery), and nei- carrefour did not provide manner if what was implemented requisite info-taking and ther indicating any interest official guidance for 2012, but basically in August of last year — fruitless computer check, “she tried to carry in reconciling their stories, chief financial officer Pierre- and that includes the everyday she told me: a) Almost all Alan called Air France in Jean Sivignon said the retailer low price strategy — is indeed wayward baggage finds its the bag on and Paris. “We’re changing termi- expected recurring operating in- bearing some fruits,” he added. owner in a day or two; b) nals,” he was told. “We lose come to fall within the range of Sales in Spain and italy were Although Delta’s literature it was too big so hundreds of bags a week.” 2.03 billion euros to 2.09 billion down 5.3 and 5.5 percent, respec- says the airline pays little Nice. hundreds of bags euros, or $2.55 billion to $2.63 tively, but here, too, Sivignon saw for emergency expenses, if they did a gate- untended in far-off corners billion, forecasted by analysts. some glimmers of hope, saying the you’re staying at a nice hotel, of charles de Gaulle. Some “We are comfortable with that rate of sales contraction in Spain insist you packed expensive were checked in by Delta, range,” he said during a confer- slowed versus the first quarter, things and put up a stink, you check in and which has no record of such. ence call. while in italy, nonfood sales in hy- can do far better than the i prefer not to think of how The ailing retailer is under permarkets were recovering. paltry norm, and c) her hus- she got one of dramatically the security new management since May, “While we are not satisfied band does production work issue trumps the inherent when Georges Plassat took over with falling sales, this constitutes in fashion. those pink, non- woes of an AWol wardrobe. as chairman and chief executive a resilient performance given i then settled into (best The overarching woe: re- officer following the anticipated the tough trading environment in driver in Paris) Gerard’s placement value. i’d take it departure of lars olofsson. Under which we are currently operat- car for the drive into the computerized to the Supreme court before his predecessor’s three-year ten- ing,” he noted. city, dropped ed at the i’d accept whatever paltry ure, carrefour struggled to turn revenues in Asia rose 14 per- Meurice and proceeded checks.” Or sum i assumed Delta would around its underperforming hy- cent in the quarter, though a large to the George V, where my offer. So on a hot, sticky permarket business and posted a portion of this was linked to the room wasn’t ready. So on maybe there Sunday i headed to Barneys string of profit warnings, causing appreciation of the chinese yuan. to the splendid tea salon and then across that hideous the shares to fall by more than 40 excluding currency effects, like- where a little bug crept out was an alien bag Bermuda shorts bazaar that percent in 2011 alone. for-like sales in the region fell 2.3 of my salad. Not a repulsive, is Fifth Avenue in the sum- Plassat has warned that it will percent in the quarter. filthy NYc bug, but a tiny, mer to Bergdorf ’s in search take three years to turn around latin America posted a 2.7 he-frolicked-in-the-French- abduction, but not only of the replacement the company, which is faced with percent increase in revenues. countryside-lettuce-fields receipts from my most re- a slowdown in consumer spending Stripping out currency effects, bug. Yet a bug nonetheless. improbable. cent shopping excursion (i’d not only in the euro zone, but also like-for-like sales were up 6.9 per- i had little more than managed to misplace the in more recent markets like china. cent during the period, helped a two-hour window to procure clothes to wear originals) but for all receipts for the last three “We will face headwinds, let by the continued growth of the throughout the couture. once in my room, i fresh- years. christian at Barneys went back to January there be no illusions,” he told Atacadao format in Brazil. in re- ened up to the extent that i could, cancelled my in a heartbeat, and sent me to customer service carrefour’s annual general meet- ported terms, Brazil posted a 3 Donatella preview last-minute, and hastened for prior years. on the phone from New Jersey, ing in June. “consumer spending percent sales drop, reflecting the to two usually successful outposts, Dries and linda told me she’d discuss it with her manager is falling everywhere worldwide.” depreciation of the real currency. lanvin. By the time 7 p.m. signaled the close of first thing on Monday. At Bergdorf ’s, Mya in cus- in the second quarter, sales carrefour said the second- Saturday shopping, i’d spent a healthy four fig- tomer service promised to have three years of in France were down 2.1 per- quarter figures had been adjust- ures i’d had no intention of spending after my receipts ready by end of day. Both ladies deliv- cent to 9.65 billion euros, or ed to take into account the sale New York spree. i had no choice, given the un- ered. Delta and Air France could take a lesson. $12.4 billion, with revenues at of its stake in its joint venture in likely possibility of my bag not showing up. on Monday, i worked from home, the better the hypermarkets division fall- Greece. its operations there have Did i say unlikely? Sunday came and went, no to prepare my lost merch claim with few inter- ing 4.4 percent, while supermar- been reclassified as “discontin- bag. My inquiries to the Air France number were ruptions. The Delta claim form asks for the exact ket sales were down 0.8 percent. ued,” and the second-quarter 2011 often infuriating. on endless hold; cut off numer- purchase date and price of the lost suitcase, and The declines were driven by figures have been restated pro- ous times. That afternoon, whether the claimant purchased additional lost a fall in nonfood sales, as bad forma, excluding Greece. a frustrating conversation with a polite person: bag insurance at the check-in counter. The for- weather impacted sales of ap- The French figures, mean- “There’s no word, Madame, no sighting of your mer question is ridiculous; the latter implicitly parel and seasonal goods. while, reflected the end of bag. Maybe now we should call JFK.” More than blames the traveler for the incurred loss. “The temperature is obviously carrefour’s franchise agreement 24 hours later, and no one had called JFK.l ater As i sat on my bed surrounded by receipts, bizarre, to say the least, and the with Altis Group, effective April that evening, a similar chat. “i’m sorry for your my assistant called to say that a guy outside my humidity level is also bizarre,” 6, and the integration of operator inconvenience.” “Sir, this is not an inconvenience. building was about to deliver my bag. Never mind Sivignon said, adding that it was Guyenne et Gascogne on June 1. Dinner with a friend who’s 20 minutes late is an that on Friday, Air France had promised to sup- too early to quantify the impact of Plassat said last month the inconvenience. This is an expensive nightmare. ply a flight number and delivery date. (Delta still the unseasonal weather. group was mulling whether to sell Please request on my file that no one claimed no knowledge of the bag.) Never mind While carrefour no longer all or part of its stake in ventures use the word inconvenience again.” that they had my home phone number. breaks out percentage increas- in Turkey and indonesia, among “oui, Madame.” on the upside, the bag came back. on the es in food and nonfood items, other countries. however, he said As for trying to call Delta at the home office in downside, it cost me four figures. Delta, you Sivignon said like-for-like food it was committed to remaining in Atlanta on the weekend — please. haven’t heard the last from me. sales growth was positive in Brazil and china.

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