What Should He Wear?

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YEAR ▲ THE historical election. MELTDOWN: IN The ▲ economy AU REVOIR, YVES: FASHION in turmoil. The death of Yves Saint Laurent. ’08SECTION II WWDWomen’sWomen’s WeWear Daily • The Retailers’MONDAY Daily Newspaper • December 15, 2008 • $3.00 Accessories/Innerwear/Legwear

Barack Obama What Should He Wear? Although the world now knows that President-elect Barack Obama will wear a Hart Schaffner Marx single- button, notch-lapel tuxedo for the evening festivities on Inauguration Day, Jan. 20, that isn’t stopping others from lining up for the role of the administration’s First Tailor. So WWD asked men’s designers what they thought the new president should wear on his historic day. Here, Brooks Brothers — which has dressed 10 U.S. presidents, including Abraham Lincoln and Bill Clinton — imagines a classically clad Obama in a morning coat with tails, a double-breasted INAUGURATION vest and a formal cravat. For more looks for evening and day — and ’09 even ties — see pages 6 to 11.

4 WWD, MONDAY, DECEMBER 15, 2008 WWD.COM General Growth Refi nances Partial Debt By Evan Clark fi rm might also have trouble keeping its property managers on board. WWDMONDAY THE CLOCK TICKED THROUGHOUT THE A Chapter 11 fi ling, however, would not have Accessories/Innerwear/Legwear weekend for General Growth Properties Inc., an immediate impact on the debt ratings of which managed to refinance or pay down $872 companies tied to General Growth through com- million in debt on Friday, but not another $900 mercial mortgage-backed securities, a type of FASHION million in loans maturing at the same time. fi nancial instrument that is backed by a loan on 6 With his lanky, basketball-toned physique and The Chicago-based real estate investment a commercial property, Fitch said. sophisticated élan, Barack Obama has all the trust, which oversees a portfolio of more than “The likelihood for signifi cant rating actions makings of a presidential style icon. 200 malls in 44 states, said Friday it secured across transactions with GGP property exposure about $896 million in mortgage loans, which it is slim given their strong performance, moder- GENERAL will use to retire a $58 million bond that came ate leverage and the bankruptcy remote nature 4 General Growth Properties managed to refi nance due Thursday and about $814 million in mort- of CMBS borrowers,” Merrick said. or pay down $872 million in debt, but not another gage indebtedness maturing next year. The ma- The company has more than $3 billion in debt $900 million in maturing loans. turities on the new fi nancing range from fi ve to maturing next year. Revenues in its last four seven years. quarters totaled $3.39 billion. 4 Kohl’s and Forever 21, among the few retailers However, those loans are separate from the General Growth put three of its Las Vegas still expansion-minded in the down economy, $900 million in loans for the Fashion Show and properties up for sale in October and said it acquired 46 Mervyns’ leases for approximately Palazzo properties in Las Vegas, which matured would put construction projects that are not $6.25 million in a court auction held last week. on Friday. The fi rm said Friday it is continuing nearing completion on hold. 16 ACCESSORIES: Despite a tough time fi nancially, to negotiate with its lenders for a further exten- “We realize we need to generate billions to Damiani executives feel the diversity of its brands sion but could offer no assurance that it would deleverage the company,” Adam Metz, interim portend a brighter future. receive one. chief executive offi cer, said on a conference call Reacting more to the new fi nancing than to the with analysts last month. “Sales transactions are 19Black Friday promotions helped eke out small loans coming due, investors sent General Growth an important part of our plan. Unfortunately, increases for retailers last month, but sales shares skyrocketing on Friday, closing at $1.80, these transactions take time and, until the deals weren’t strong enough to boost year-ago results. up 36 cents, or 25 percent. Since hitting their are completed, there is really nothing to an- Renewed efforts to broker a breakthrough deal in 52-week high of $46.59 on Dec. 14, 2007, shares nounce. We hope to be able to report some trans- 21 have traded as low as 24 cents, on Nov. 12. actions prior to yearend.” the troubled Doha global trade talks by yearend General Growth borrowed heavily to build its Metz was named interim ceo and Thomas were derailed Friday. retail empire and, as a consequence, most of its as- Nolan Jr. interim president last month after EYE sets have been put up to secure borrowed money. the company learned former president Robert “GGP malls are generally dominant malls in Michaels and former chief financial officer 12 Young girls in cocktail frocks braved Thursday their region,” said Susan Merrick, managing di- Bernard Freibaum received unsecured loans night’s torrential downpour for a Teen Vogue rector at Fitch Ratings, on Friday. “If a bankrupt- from a Bucksbaum family trust in order to cover shopping event at the Louis Vuitton store. cy were to occur, funds necessary for the ongo- margin calls on the purchase of company stock. Taraji P. Henson in The Year in Fashion is included as a ing capital expenditures utilized for renovation The Bucksbaum brothers, Martin and Matthew, Pamella Roland. Section II in this issue. and leasing costs may be limited to excess cash began expanding on a family grocery business fl ow from the property or [debtor-in-possession] in 1954, building one of the Midwest’s fi rst shop- fi nancing in a Chapter 11 reorganization.” ping centers in Cedar Rapids, Iowa. In 1970, the Classifi ed Advertisements...... 22-23 Merrick said a bankruptcy could make for brothers exchanged stock for shares in General more vacancies in malls as the company’s leas- Growth, which was listed on the New York Stock TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS ing arrangements become less productive. The Exchange two years later. [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 196, NO. 125. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, October and December, two additional issues in March, April, May, June, August and November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division Kohl’s, Forever 21 Take Mervyns Units of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage By David Moin in the auction are owned by Macerich, the Santa paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Agreement No. 40644503. Monica, Calif.-based mall owner and operator. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian KOHL’S AND FOREVER 21, AMONG THE FEW Of the 22, Forever 21 will occupy 12 and Kohl’s addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS retailers still expansion-minded in the down econ- will occupy 10. Construction to convert those CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA omy, acquired 46 Mervyns leases for approximate- locations is expected to begin next month, and 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed ly $6.25 million in a court auction held last week. the units will open at various times next year, on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. Kohl’s will move into 31 locations, while Macerich said. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online Forever 21 will get 15, pending bankruptcy court Macerich bought 41 Mervyns sites in late 2007 at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. approval. Mervyns decided to liquidate its 149 and early 2008. “We look forward to gaining con- Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please locations in October. trol of our remaining 19 Mervyns locations by advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT “With over 1,000 stores from coast to coast, second-quarter 2009, when we will reach out to RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, these locations provide increased presence in the retailers that have expressed strong interest UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER underpenetrated markets,” said Kevin Mansell, in these attractive locations,” said Tony Grossi, MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY president and chief executive offi cer of Kohl’s senior executive vice president and chief oper- WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Department Stores Inc. “We will continue to be ating offi cer of Macerich. “The current scenario ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. opportunistic and prudent in our discussions is one we planned for, among others, when we with the owners of select Mervyns real estate as acquired the Mervyns sites. Our company has an we continue to position Kohl’s to grow market excellent track record of recycling anchor spac- DAILY share.” es, as we did successfully with the Federated I’m in the prime of my Next year, Kohl’s expects to open about 50 locations we acquired in 2006. We’ve added ap- “ stores, including the majority of the 31 former preciable value every time.” QUOTE life. And it’s been a very Mervyns locations. Another two former Mervyns locations, in “This is a smart, strategic move for our com- Macerich centers but not owned by Macerich, long prime. pany,” added Christopher Lee, senior vice presi- will be converted to Kohl’s and Forever 21. ” dent of Forever 21 Inc. “The opportunity to as- Macerich also said it closed on a seven-year, — Cynthia Rowley on staying young at heart. Page 12. sume 12 outstanding, large-format spaces in key $250 million loan at 6 percent on Washington shopping centers in the West works beautifully Square Mall in Portland, Ore. The transaction with our plans for growth. In this economic envi- generated proceeds to Macerich above the prior COMING THIS WEEK ronment, we also are especially pleased to help loan of $63 million. This year, Macerich complet- TUESDAY: The U.S. Labor Department releases the Consumer Price preserve retail jobs in these markets.” ed 13 fi nancing transactions, with its pro rata Index for November. Twenty-two of the Mervyns locations involved share of those loans totaling nearly $1.3 billion. WEDNESDAY: Nike reports second-quarter sales and earnings. A Richard James TODAY ON Savile Row look THURSDAY: Quiksilver reports fourth-quarter and year-end sales for day. and earnings. Rite Aid reports third-quarter sales and earn- WWD ings. .COM CORRECTION • Additional sketches on what men’s designers think • The Breast Cancer Research Foundation has illuminated more President-elect Barack Obama should wear than 200 landmarks in 60 countries. This information was incor- • Introducing new landing pages: rectly cited in an article that appeared on page 50 in Friday’s WWDMen’s and Footwear News WWD Beauty Biz. • WWDTrend: Easy, breezy summer looks • The name of Jim Schachter, editor, digital initiatives at The New • More on the Year in Review, including parties York Times, was misspelled on page 19, Tuesday. • Global breaking news BROADWAY W&H Properties is pleased to announce the following transactions at the complete fashion environment

Castle Hill Manufacturing, Inc. Marisol Central Mills d/b/a Freeze Natural Impressions Inc. Ellen Tracy, LLC NYL Brands Inc. & Active Brands Federal Knitworks Patra IFG Group (Adjimi Apparel) Richina Jay Day, Inc. Route 66, LP Juvens, Inc. Soho Fashion

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Michael Frantz, Director 212.372.2203 100% COMMISSION ON LEASE SIGNING [email protected] 6 WWD, MONDAY, DECEMBER 15, 2008 Barack Obama What Should He Wear? WITH HIS LANKY 6-FOOT, 2-INCH FRAME, BASKETBALL-TONED For Obama’s big day on Jan. 20 on the steps of the Capitol, physique and sophisticated élan, Barack Obama has all the makings designers mostly see him in updated yet classic sartorial style. of a presidential style icon. With endless references to John F. Tommy Hilfi ger envisions a patriotic color combo of a navy Kennedy, designers are eagerly anticipating a return to Camelot- blue suit, white shirt and red tie, while Brioni advocates for era glamour. But Obama has cultivated a style all his own. Kennedy the iconic three-piece gray fl annel suit, with an Italian twist: was a product of the East Coast establishment and its preppy, New double vents. Of course, with men’s wear, it’s all about the England aesthetic, while the President-elect has humbler roots — subtle details, so Paul Smith edges his suit lapels with black albeit roots that led him to Columbia and Harvard (Kennedy’s alma grosgrain tape, and Kenneth Cole suggests a Fifties-era — but mater). Indeed, Obama’s style tends to refl ect his political philosophy: chic again — tie bar. Come evening and the inaugural balls, practical but carefully considered; modern but accessible. Rag & Bone and Dsquared want Obama to don a full-on While JFK was said to be horrifi ed when he appeared on the cover tuxedo with tails, but Savile Row’s Richard James of GQ — he didn’t want to be seen as fashion-conscious — Obama really pushes the envelope with a sequined has happily appeared on the covers of GQ, Esquire, Men’s Vogue and tuxedo jacket. even Men’s Health (with all his clothes on). “This is the fi rst president Interestingly, none of the designers include in a very long time that has a great body for clothing,” noted Duckie that pesky campaign issue in their sketches: Brown’s Steven Cox and Daniel Silver. “Because that’s true, he can an American fl ag lapel pin. wear a more modern, slim silhouette.” — Alex Badia and David Lipke

Richard James Savile Row

▲ Rag & Bone

Thom Browne ▲

Turnbull & Asser ▲

Elie Tahari

Salvatore Ferragamo ▲ WWD, MONDAY, DECEMBER 15, 2008 7 WWD.COM

Paul Smith INAUGURATION ’09 ▲ Brioni

▲ Marc Jacobs

▲ Sean John

▲ Dsquared 8 WWD, MONDAY, DECEMBER 15, 2008 What Should He Wear? INAUGURATION’09

Kenneth Cole ▲

▲ Duckie Brown

Calvin Klein Collection ▲

DKNY ▲

▲ Missoni WWD, MONDAY, DECEMBER 15, 2008 9 WWD.COM

For more, see WWD.com.

Nautica ▲ ▲ Tim Hamilton

▲ Tommy Hilﬁ ger

▲ Ermenegildo Zegna

Reem Acra ▲ 10 WWD, MONDAY, DECEMBER 15, 2008 ...and for the ties INAUGURATION’09

▲ Nicole Miller

▲ Geoffrey Beene ▲ Nautica

Tommy Hilﬁ ger ▲

▲ Elie Tahari

▲ Perry Ellis Portfolio

Richard James Savile Row WWD, MONDAY, DECEMBER 15, 2008 11 WWD.COM ▲ Salvatore Ferragamo▲ DKNY

▲ Countess Mara

Brooks Brothers ▲

Kenneth Cole ▲

▲ Vineyard Vines For more, see WWD.com. 12 WWD, MONDAY, DECEMBER 15, 2008 WWD.COM

Peaches Geldof in Louis Vuitton. Shop Girls

YOUNG GIRLS IN COCKTAIL FROCKS braved Thursday night’s torrential downpour and blustery winds to attend a Teen Vogue and Louis Vuitton-sponsored shopping event at the brand’s 57th Street store. As the junior crowd enjoyed apple cider “mocktails” and makeovers at Sephora stations on the boutique’s second floor, WWD caught up with a few of the starlets to find out their holiday traditions.

Alison Pill, actress, “Milk”: “I’m going to Toronto to hang out with my dogs. My dad is Estonian and every year we make a kringel [a sweet bread]. How well it turns out predicts how the rest of your year will go.”

Peaches Geldof, British television presenter: “I’m going to spend it with my family in England and have my ﬁ rst Christmas with my husband [Max Drummey]. Right now my house in Williamsburg is all Christmased out.” Anita Bitton, Jessica Szohr, actress, “Gossip Girl”: “I have Christmas at my Alexander Taraji P. Henson in grandma’s house in Wisconsin. She makes a cake that says ‘Happy Wang and ▲ Pamella Roland. Birthday Jesus’ on it and we all sing ‘Happy Birthday’ to Jesus.” Ryan Korban.

• • • Alison Pill in Ben Sherman Meanwhile, Taraji P. Henson, Chace Crawford and Lauren Bush gathered at and vintage. the Soho Grand after a Cinema Society and Pamella Roland-sponsored screening of “The Curious Case of Benjamin Button,” which was nominated for a Best Motion Picture Golden Globe award earlier that day. The crowd’s mix of old and young was appropriate, given the fact the ﬁ lm stars Brad Pitt as a man who ages in reverse. The subject matter hit close to home for many in the crowd. “I feel like I’ve regressed as I’ve gotten older,” said Cynthia Rowley, who holed up in a booth for most of the party with pal Charlotte Ronson, two decades her junior. “I’m in the prime of my life,” Rowley continued. “And it’s been a very long prime.” Amy Sacco also confessed to being young at heart. “I act like I’m in my mid- 20s,” declared the 40-year old club queen. “I’m no grandma. I’m still doing this, aren’t I?”

• • •

On Wednesday, Vanessa Traina, Alexander Wang and Jen Brill helped Davinia Wang and Ryan Korban celebrate the fi rst anniversary of their TriBeCa shoe store Edon Manor, while uptown, Miu Miu feted its new 57th Street fl agship with Jessica a tastefully quiet affair. Claire Danes and Ciara For more, Szohr in Claire mixed in seamlessly with the fashion editors and see WWD.com. Urban Danes in minidress-and-tights-clad girls who wandered the Outfi tters. Miu Miu. three-story boutique admiring bejeweled shoes as

techno music reverberated. STEVE EICHNER ALL OTHERS BY NEIL RASMUS/PMC; BY CENTENO; WANG TALAYA PHOTO BY BYRNE

DESPITE HAVING MORE THAN 30 FILMS AND for putting Australian acting on the map. “Someone TV shows to her credit, Rose Byrne is still the type was saying to me that Australian actors are the fl avor of actress who can walk anonymously through of the moment. It was British actors, and now it’s New York’s West Village. The youngest of four Australian actors who are having a real fl ourish.” siblings, she started acting as a child in her native Australia, and moved to Hollywood when she IN THE PIPELINE: In addition to the second and was 22. Byrne gained notice Stateside with parts third seasons of “Damages,” Byrne also has been in “Wicker Park,” opposite Josh Hartnett, and busy shooting fi lms. In “Knowing,” a supernatural “Troy,” in which she played the seductive Briseis. thriller, she plays a single mother who joins forces She since has appeared in Sofi a Coppola’s “Marie with Nicolas Cage when he uncovers a time capsule Antoinette,” Danny Boyle’s “Sunshine” and “28 whose contents predict natural disasters. And she Weeks Later.” Now Byrne has taken to the small scored the romantic lead in the indie “Adam,” screen in the critically acclaimed Fox series opposite Hugh Dancy, who plays a man affl icted with “Damages,” opposite Glenn Close, Tate Donovan Asperger’s syndrome. and Ted Danson. As Ellen Parsons, an ambitious young lawyer who gets sucked into a dark underbelly of New York crime, she gets to show her vulnerable side and fl ex her dramatic muscles. I feel very lucky that I can Watch for her FBI-informant plotline in the second “ season, which premieres in January. pay my rent and all that, but

PROVENANCE: Sydney I’m still at the bottom of AGE: 29 the big mountain. ” TOUGH LOVE: Though she’s been acting — Rose Byrne professionally for 16 years, Byrne continues to grapple with Hollywood’s brutal side. “I’m ON THE TOWN: Television series often call for rough still at a point where I’m very much fi ghting for hours — a 16-hour day is not an anomaly — but roles and auditioning, so I feel very lucky that Byrne has found time to enjoy the New York nightlife, I can pay my rent and all that, but I’m still at too, and not of the 27th Street club variety. This past the bottom of the big mountain because I would fall, the actress has donned the likes of Burberry obviously love to work with [certain] directors,” Prorsum, The Row and Calvin Klein Collection for she says. “Of course, I’m plagued with self- the Whitney Art Gala, a fi lm event at MoMA honoring doubt because you take a lot of hard knocks, fellow Aussie Baz Luhrmann, a book party for Mary- so you can become a bit broken. It’s just the Kate and Ashley Olsen and the Fashion Group nature of acting and rejections. But I think I’m International awards. “I love that about New York: probably tougher about it now.” it’s a real social scene,” says Byrne, who has quickly learned the ropes. “It’s fun to go, look at the outfi ts, GAINING NOTICE: Byrne has always admired talk bulls--t with people and then go home.” compatriots like Toni Collette and Nicole Kidman — Vanessa Lawrence BYRNE-ING UP WWD, MONDAY, DECEMBER 15, 2008 13 WWD.COM CEW Event Honors Estée Lauder Cos. FASHION SCOOPS HOUSE OF WAX: Coco Rocha certainly stole the spotlight from her two AROUND 800 BEAUTY INDUSTRY EXECU- ing that, in addition to the BCRF, the MAC AIDS mannequins at the Rootstein Gallery cocktail event in her honor on tives gathered at The Waldorf-Astoria hotel Fund has raised $128 million to date. Thursday night. The Canadian is the latest model to be immortalized by Friday afternoon to honor the Estée Lauder Cos. The total raised during the event included Rootstein Mannequins, which previously replicated Twiggy, Pat Cleveland Inc. for the company’s charitable efforts. In the $73,000 garnered by a spirited live auction, dur- and Agyness Deyn. It was the fi rst time Rocha was showing off her brand- process, more than $120,000 was raised. ing which an auctioneer urged attendees to think new, fl aming-red hair courtesy of Louis Licari for a January Vogue shoot. The event, the Cosmetics Executive Women of bids as “competitive giving, not buying a va- While the look was reminiscent of early Nineties Linda Evangelista, Rocha Foundation’s annual Beauty of Giving cation.” Nikos Mouyiaris, said it reminded her of the strawberry blonde locks from her childhood. Luncheon, serves as the organization’s founder and president of “I look like my mom’s daughter,” she said, wearing a Rootstein white sole fund-raiser for its Cancer and Mana, and Leslie Blodgett, tuxedo jacket, Proenza Schouler wide-leg pants, American Apparel Careers program, which provides sup- chief executive officer of tank and H&M beaded fl ower brooch. In fact, Kevin Arpino, Rootstein port for working women with cancer. Bare Escentuals, took that creative director, who designed the replicas through a collaboration “The Breast Cancer Research to heart, battling it out for a between Visionaire and Elite Models had only seen Rocha’s new do the Foundation, which was founded by Evelyn trip to Costa Rica. Mouyiaris night before and had to re-dye the forms’ hair. While she described the Lauder 16 years ago, has raised more than prevailed in the end, with a mannequin experience as her highest accomplishment thus far, she bid of $22,500. added demurely, “It’s a little strange to see all these people here. I would While she professed to rather be sitting home, watching TV.” BEAUTY BEAT be thrilled with the CEW honor, Evelyn Lauder was WHEN CAMILLA MET VIVIENNE: The Duchess of Cornwall cast caution to the $225 million to date,” said Chrysallis’ Jill already looking to the future wind and donned her fi rst-ever Vivienne Westwood gown for a night out with Scalamandre, chair of CEW’s board of of her philanthropic efforts Prince Charles at the London Palladium. On Thursday night, the duchess governors. “The Lauder family’s remark- as she left the hotel. “BCRF wore a one-off, draped gown in a petrol-colored silk double duchess able dedication to philanthropy is shared is now working with the Avon satin for the 80th Royal Variety Performance. According to a Westwood by everyone who works at Estée Lauder, Foundation and the Susan G. spokesman, it was Philip Treacy — Camilla’s milliner of choice — who and we honor them for their steadfast JOHN AQUINO PHOTO BY Komen Foundation to support persuaded her to take a chance on Westwood. Camilla invited Westwood support of Cancer and Careers.” Leonard and Evelyn Lauder. breast cancer research,” she and her husband Andreas Kronthaler to Clarence House earlier this year for Thia Breen, president of Estée Lauder said. “Together, we will avoid a fi rst meeting. Oh, to be a fl y on the wall for that one. Worldwide, accepted the award on the company’s duplicating research efforts and ensure that we behalf. “Giving and social responsibility are built continue to make serious strides to fi nd a cure.” PINK TOUR: Dolce & Gabbana are helping Italy celebrate the historic into the Estée Lauder Cos.’ DNA,” she said, not- — Julie Naughton 100th running of the Giro d’Italia bike race (Italy’s equivalent of the Tour de France) that will take place in May. The duo whipped up their version of the Maglia Rosa, or pink jersey T-shirt, fi rst created 77 years ago and worn by the winner of each stretch of the Georg Jensen Gets Modern on Madison race. It’s the fi rst time a fashion house has used its creative By Sharon Edelson whim to design this zipped T-shirt. The two designers NEW YORK — Georg Jensen’s newly expanded and personalized it by redesigned flagship at 687 Madison Avenue has creating a juxtaposed all the comforts of home. effect, stitching the The 2,500-square-foot unit looks like a clean- logo around the neckline lined modernist house that could have been de- and inserting bands with Italy’s signed by Alvar Aalto or Arne Jacobsen, celebrat- green, white and red colors. Dolce ed Danish architects that infl uenced Mark & Gabbana are no newcomers to Pinney, the London-based designer athletics, having sponsored and of the Georg Jensen store. dressed the A.C. Milan soccer team, Ulrik Garde Due, Georg Rings resting as well as the Italian national soccer Jensen’s president and chief on a cake squad, rugby and tennis players. executive officer, said the server. fl agship will do about $2,500 BEING USEFUL: Marie Gray, co- a square foot in sales. “Our founder and current consultant for Dolce & Gabbana’s version of the comps are 7 percent above St. John, has heard more than a few Maglia Rosa. last year’s [year-to-date] compelling tales from women sharing comps in the U.S.,” Garde their memorable St. John-clad moments. Gray, who made an appearance Due said. “We’ve start- at Neiman Marcus in both Chicago and suburban Oak Brook Friday said ed working with Neiman women have told her about getting married in the iconic knit brand or Marcus, Bloomingdale’s, saks. attending high-profi le functions at the White House, but the most surprising com, Gump’s and Michael C. story involved a woman who administered CPR and saved a man’s life while Fina.” The company plans to open wearing her favorite St. John suit. “That was an all-time fi rst,” said Gray, a shop at La Rinascente in Italy. who noted women also use the opportunity to share what’s missing from the “The Madison Avenue store is a very Danish line. In Chicago, they want boot-length skirts to battle the elements, said environment,” Garde Due said. “It’s like a Gray, who said her role with the company, like that of her daughter Kelly, is Danish home — sleek and contemporary, yet cozy supportive in nature. “We’re there just to help in any way we can,” she said. and warm.” “Some days it’s on the technical level, some days it’s personal appearances.” Classic Danish furniture by Fritz Hansen and Thomas Kjærholm is featured, and ceilings, BIG SCREEN: On Tuesday afternoon, Cynthia Rowley managed to stop throngs carpets and fl oors all were made in Denmark. of Times Square pedestrians when she partook in the Style Series event Expansive glass windows bring the outside in presented by Diet Coke. Rowley appeared on the Nasdaq and Reuters PHOTOS BY KYLE ERICKSEN KYLE PHOTOS BY and vice versa, and ornamentation was kept ▲ The dramatically lit icon wall. electronic billboards, and hundreds stood and watched a live interview with to a minimum — the better to show off Georg her replete with looks from her holiday and spring collections. “As exciting Jensen’s designs. The living room, with its fi replace and chim- and groundbreaking as the whole thing was, it’s still terrifying to see your “We are a luxury Scandinavian lifestyle ney, has shelves — called an icon wall — which face six stories tall,” Rowley said. brand,” said Garde Due. “We’ve updated our show off antique and modern Georg Jensen piec- positioning to refl ect timelessness, quality and es, such as a sterling silver fi sh tray for $80,000. PAMPERING THE LOYAL: Shopping isn’t exactly a national pastime at the functionality.” “We felt our stores were too museumlike,” moment, but to ease the grind for those who do partake, the Madison Lush still lifes in store windows and on the Garde Due said. “There was too much merchan- Avenue Business Improvement District has set up a “by invitation only” dining room table are at once sensuous and ele- dise behind glass. That’s so un-Danish.” two-day hospitality suite at the Hotel Plaza Athénée, 37 East 64th St. mental, as is a display of hydrangeas, roses, suc- Stools are drawn up to the counter of the It opened Saturday and reopens Sunday, Dec. 21. Retailers on Madison culents, pomegranates and silver hollowware, all kitchen, which doubles as the cash wrap. The Avenue invited their favored clientele to visit the suite and take advantage on a bed of moss. counter is where the latest products are dis- of complimentary gift-wrapping, coffee and hot chocolate. But best of played to prompt discussion and interaction all for those spending $1,000 or more on Madison, a gift bag created by between the staff and customers over a glass of Madison & Mulholland awaits. Each has at least three items from Madison “Forked Up,” an art Champagne or a cup of coffee. An area between Avenue boutiques with a total value of $150 or more. work commissioned for the veranda and kitchen is a courtyard garden. the living room. “For the last fi ve to 10 years, we’ve focused on RALPH AIDS RIVERKEEPER: Anyone at a loss for what to give their loved jewelry and watches,” said Garde Due. “Jewelry ones this holiday season should have stopped by the Ralph Lauren store is the cornerstone of our business and accounts in New York’s SoHo earlier this week, where Amanda Hearst was doling out for 70 percent of sales. The new store marries all advice to clueless shoppers. Her favorite items? Men’s fl annel shirts and the worlds of Georg Jensen.” long-sleeved polo shirts. “My brother Randy lives in fl annel,” she said. Jewelry is still strongly represented with a Fifteen percent of the evening’s sales benefi ted the environmental charity gallery with display cases made of blond wood. Riverkeeper, founded by Robert F. Kennedy Jr. Hearst is on the organization’s Wood is a predominant indoor material in executive committee and cochairs the junior council with Luigi Tadini. She Scandinavian homes and was used for both the said she tries to maintain an eco-friendly lifestyle. In addition to using fl ooring and the slatted wall and ceiling panels energy-saving lightbulbs and unplugging her phone chargers. “I send my of the store. dry cleaning out in garment bags so they don’t have to use the plastic ones, For more, Garde Due said the new prototype will be and I visit eco-resorts and eco-lodges when I travel,” she said. But this rolled out to stores in Asia, Europe and else- Christmas she’ll be staying somewhere not exactly known for its austerity see WWD.com. where in the U.S. — the ornate Hearst Castle in San Simeon, Calif. 14 WWD, MONDAY, DECEMBER 15, 2008 WWD.COM

LONG BEFORE DITA VON TEESE donned Lucite heels and stripped down to her bejeweled, barely there underthings, there was Bettie Page: the former secretary from Tennessee — black bangs cut short, lips painted matte red — popped up The Immortal Bettie Page in lad mags and pinup posters in 1951, her bustier-and-whip ensembles becoming a symbol of the era’s sexual repression and a major influence on fashion, underpin- nings and otherwise. Page, who died Thursday at 85, started out covering up her curves — modeling furs, that is — but became a locker-door standard by shimmying into bondage gear for the brother-and-sister photographers Irving and Paula Klaw. Clad in black bustiers, often brandishing a whip, Page was both fi erce and demure, a happy dominatrix whose appeal was in her ability to seem both utterly unattainable and girl-next-door sweet (if the girl-next-door wore six-inch stilettos and a sheer red chiffon bathrobe, as Page did in one in- famous shot). Throughout the early Fifties, she shot dozens of short films and hundreds of saucy centerfolds, many for magazines with names like “Wink” and “Eyeful” (according to Von Teese’s book “Fetish and the Art of the Teese,” Page “holds a title for more magazine appearances than “Jungle Bettie,” Marilyn Monroe and Cindy Crawford com- photographed bined.”) There were the “Jungle Bettie” in Africa in the photos, in which Page posed with zebras Fifties. and hung from a tree wearing a one- shouldered leopard-print bodysuit, fi n- gers curled into a claw; the 1954 movie “Varietease,” in which she was poured into a sequin halter bra and fi lmy harem pants; Page on the beach, wearing a white bikini trimmed with black embroidery. Many of Page’s costumes were surprisingly chic in their simplicity, but her fame was cemented by a 1955 Playboy centerfold — she was one of its earliest Playmates — in which she wore nothing at all (save for a little red Santa cap). Page abruptly quit the modeling business in 1957, moved to Florida and went through two divorces before landing in Southern California, where she lived up until her death (rarely appearing in public and refusing to be photographed). While she no doubt infl uenced lingerie designers during her heyday — she frequently wore a structured bullet bra with seamed stockings, a combo both elegant and titil- lating — her impact on fashion was truly made in the last few decades. In the early Eighties, comic book illustrator Dave An iconic Gretchen Stevens invoked Page and her retro glam- shot of Page Mol as Page our in “The Rocketeer” (the hero’s girl- friend is based on Page), fan clubs sprout- in 1955. in the 2006 PETERS COLLECTION TERTAINMENT/NEAL fi lm “The ed around her cult cheesecake fi lms, and Notorious pop stars and actresses began to take on Bettie Page.” her signature look (a recent burst of attention came courtesy of Mary Harron’s 2006 biopic “The Notorious Bettie Page,” star- ring Gretchen Mol). Certainly Madonna, whose 1992 book, “Sex,” shot by Steven Meisel, featured the singer high-heeled and all tied up, owes a thing or two to Miss Page; likewise late-Nineties Gwen Stefani, with her bikini tops and trimmed bangs; so, too, the revived rockabilly music movement of the late Eighties, whose followers snapped up cinched-waist dresses and bustiers from every resale bin around. Katy Perry is practically a dead ringer for the pinup, with her curled jet-black coif and short-shorts. And the aforementioned Von Teese, who, with her Swarovski- studded push-up bras, has made a career treading the naughty-but-nice territory that Page forged. Designers, of course, have also sought inspiration in the star’s brief but image- rich career, from Dolce & Gabbana and Vivienne Westwood to Agent Provocateur. There’s even a Bettie Page Clothing collection, featuring nipped-waist, full-skirt- ed dresses with names like “Party Time” (the line’s fl agship is, not surprisingly, in Las Vegas). “It’s a sad day, but business is very good,” Tatyana Khomyakova, the company’s founder, said on Friday. “The retro look is popular right now, and girls, they like to look elegant but also very sexy, and Bettie represented that. Even if she is more famous without the clothes.”

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Accessories Report With a Diverse Brand Roster, Damiani Seeks Growth

By Alessandra Ilari Save for Bliss, which is outsourced to China, all of Damiani’s production takes place MILAN — When Guido Damiani moved to Milan 15 years ago to be a where it’s based in Valenza, a medium-sized real estate agent, he shared an apartment with a goldsmith friend town in Italy’s northwest that is densely popu- whose stories of diamonds and gold intrigued their female dates much lated by jewelry companies. more than his brick-and-mortar ones. Damiani also broke new ground by strik- But things changed when Damiani went back to his gem-stud- ing deals with Jil Sander and Margiela to ded roots and today the chairman and chief executive offi cer at the create fi ne jewelry collections for the hous- 84-year-old company founded by his grandfather, Enrico, has his fair es. The introverted and experimental nature share of stories to tell. of both designers didn’t intimidate Damiani, Damiani and his siblings, Silvia and Giorgio, both vice presidents, who views the alliances as “constructive for spearheaded fast-paced growth when they took the reins from their both parties.” father, Damiano, who died in a car accident in 1996. The past decade For Jil Sander, the fi rm crafted inventive has been prolifi c for the fi rm, which morphed from a medium-sized earrings made with thin gold rods and pre- jewelry company to a public group with a varied portfolio of brands. cious stones that meld a tribal aesthetic with Moreover, Damiani acquired retail chain Rocca SpA in 2006 and a Twenties air and switched gears to make struck two high-profi le designer collaborations with Jil Sander’s Raf Margiela’s extra large pieces including neck- Simons and Martin Margiela. laces composed of giant oval links. But things haven’t always gone smoothly for Damiani of late, from Guido Such unions display Damiani’s versatility the fi rm’s share price to its fi nancial results. When asked to evaluate Damiani and capability to treat designer’s whims. the stock market adventure started in November 2007, Damiani said: “We’ve had plenty of fashion houses come “If we look at the stock price, it’s clear that we haven’t had much sat- knocking at our door,” said Damiani. “When isfaction but we didn’t do it for short-term profi t,” said the 40-year-old the crisis withers, I think there will be a boom of fi ne jewelry brands executive. “However, it did help us raise cash to make investments because consumers, especially ones from emerging markets, will such as the acquisition of Rocca and to make us debt free.” A Damiani want to wear beautiful jewels.” Over the last year, Damiani’s stock slumped fourfold, falling from a necklace. In a rather conservative industry like jewelry, where the winds peak of 3.98 euros or $5 at current exchange, to 1 euro or $1.30. Damiani of change are mild, Damiani is one of the few companies structured noted that three years are needed to truly evaluate the undertaking. to control everything from design to production, from shipments to In the six months through Sept. 30, Damiani’s net profi t fell 46.5 retail. It has 80 stores worldwide, half of which are franchised. percent to 1.8 million euros, or $2.3 million at current exchange. Commenting on the recent fi nancial meltdown, Damiani hopes the Consolidated revenues fell 10.9 percent to 66.1 million euros, or pessimism that is warping consumers psychologically will soon dis- $83.8 million. sipate, but stressed recessions are good to weed out fl ash-in-the-pan Thanks to the group’s myriad brands — Damiani, Bliss, Salvini, or underperforming companies. Alfi eri & St. John and Calderoni 1840 — Damiani has a multitier po- He believes a weaker euro against the dollar and the yen is posi- sitioning that caters to teenagers on a budget who buy Bliss and so- tive, and hopes consumers and investors will shun the stock markets phisticated shoppers who splurge up to six-digits for Damiani and to invest in luxury goods again. Calderoni 1840. “It’s obvious that for an entrepreneur eager to get things done, Their star-studded advertising campaigns have featured Brad Pitt, these economic conditions are frustrating,” said Damiani. “But I’m Jennifer Aniston, Sharon Stone, Gwyneth Paltrow, Paris Hilton and convinced that luxury goods are the last to enter a recession and the Juventus soccer ace Alessandro Del Piero. fi rst to come out of it. And we’ll be ready when that happens.” @kËjk`d\ kf\ok\e[pfli^cfYXci\XZ_%

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JACK VARTANIAN IS BRINGING from all over the world, including the colors of Brazil to Manhattan. Belgium, India, Japan and China. The São Paulo-based jewelry de- “My collection has a glamorous signer opened his fi rst U.S. store and vintage look to it,” said Vartanian, Tuesday at 996 Madison Avenue. who has fi ve stores in Brazil. The 500-square-foot shop offers His signature collection also is a full range of Vartanian’s pieces, available at select Barneys New York with prices starting at $500 for stores, as well as Louis Boston. something simple to $20,000 for A ring and The store was designed by a more gemstone-intensive piece. earrings from Arthur Mattos Casas and was in- One-off items with many dia- Jack Vartanian. spired by the environs of São Paulo, monds can rise to $150,000. with use of deep browns, refl ective Vartanian, who has dressed glass, raw woods and natural woven the likes of Gisele Bündchen, fi bers throughout. Kate Hudson and Cameron Diaz, Vartanian anticipates the store is known for his bold use of color A rendering of Jack Vartanian’s willwill generate $5 million in retail and clean, art deco-inspired lines. New York fl agship. salessales in the fi rst 12 months. Vartanian sources gemstones — Sophia Chabbott FINDINGS CRYSTAL MOMENT: Swarovski is telling time. The Austrian crystal brand is launching a watch collection in April at Switzerland’s Baselworld, hitting stores for spring. The centerpiece of the line is the Octea Sport, a stainless steel sporty style with a quartz calibre movement. Each piece features crystal facets and accents for which the brand is known. “This collection is aimed at the multifaceted woman,” said Swarovski creative director Nathalie Colin. “It is inspired by life, by day, by night, by each moment lived by this independent and A Swarovski modern, fashion- watch. conscious woman.” The timepieces will retail for about $750 at Swarovski’s 200 doors nationwide and select watch retailers.

LAMBERTSON ONLINE: Lambertson Truex is launching its ﬁ rst e-commerce site, lambertsontruex.com. The site will feature men’s and women’s accessories collections, as well as showcase the season’s bestsellers and limited edition styles. “The online boutique was a natural next step for the brand,” said John Truex, co-founder and co-creative director. “The site has beautiful, rich visuals of the products and is easy to navigate.” Among fall bags featured on the site is the Large Mia, an oversize leopard print tote, and the Barclay Business Brief, a leather men’s bag.

FORWARD MARCH: Howard R. Levitt, president and chief executive offi cer of Tourneau, will receive the United Service Organizations’ Distinguished Service Award tonight at the USO of Metropolitan New York’s 47th annual Armed Forces Gala & Gold Medal Dinner at Cipriani in Manhattan. Gen. David H. Petraeus, commanding general of U.S. Central Command, also will receive the award that is given annually to individuals who demonstrate leadership and distinction in their service to the U.S. and the support of U.S. troops. Past award winners include Bob Hope, William Randolph Hearst and Vice President Dick Cheney. Declaring he was “deeply honored,” Levitt said: “Tourneau was one of the fi rst brands to partner with the CONFIDENT. MODERN. REAL. War Veterans Watchmaker Initiative of the American Watch Guild.We hope to www.hobointernational.com repay some of the sacrifi ce and service of returning war veterans by giving them an opportunity to apprentice under our experienced watch technicians.” 18 WWD, MONDAY, DECEMBER 15, 2008 WWD.COM Accessories Report Romancing the Stones

TO CLASSIFY ANNA HU AS AN OVERACHIEVER WOULD BE AN understatement. The New York-based Taiwanese jeweler, who will open her first U.S. store at the Plaza today, holds two master’s degrees — in art history from Parsons The New School for Design and in arts administration from Columbia — and is an award-winning concert cellist. (She studied at the New England Conservatory of Music and has played alongside the likes of Yo-Yo Ma.) She’s also a mother of two. Hu, 31, maintains that music was her fi rst love, and her heart was set on stardom. “I didn’t want to be a chamber or orchestra player,” says Hu, who, while soft spoken, is not shy about her ambitions or accomplishments. “I always wanted to be a soloist.” Her career as center-stage cellist never happened, not for lack of trying — Hu’s grueling practice schedule, up to eight hours a day, resulted in tendinitis in her shoulder in 1997. With her musical options limited to a seat in the orchestra or teaching, she enrolled in summer school at the Gemological Institute of America, located at 580 Fifth Avenue, where her father, a diamond dealer, kept a Stateside offi ce. The new Anna Hu Indeed, Hu had a head start on her offi cial stone store at the Plaza. studies. “When I was eight years old, I accidentally THOMAS IANNACCONE PHOTO BY opened a door and saw lots of white rocks on a table,” recalls Hu, dressed casually — jeans and a big sweater known as the girl who asks for trouble,” she says, claiming that — aside from an enormous seashell-shaped diamond ring she has at times searched for years to fi nd just the right gems that she twirls on her fi nger. “I asked my father, ‘What’s to realize certain designs. Her collection ranges vastly from the that?’ It was all so shiny, and what girl doesn’t like shiny approachable ($3,000 pieces) to the ultraluxe ($3 million pieces) things?” After that, when Hu wasn’t practicing cello, she was and includes such fl ights of fancy as the Anemone ring, full of sorting diamonds by color, shape and size. dégradé Kashmir sapphires and diamonds; the Pony brooch, studded Such high-glam knowledge certainly came in handy when with pink diamonds, and the Dancing Crane, an extravagant necklace Hu decided to pursue jewelry in earnest, beginning with a formal full of black and white diamonds and Baroque pearls that converts education. After receiving her GIA certifi cation, Hu enrolled in into a bracelet and brooch. design classes at the Fashion Institute of Technology, where she met While both Hu’s Taiwan and Plaza salons — the latter is projected legendary Harry Winston jeweler Maurice Galli. Under his tutelage, to do $5 million in fi rst-year sales — are oceans away from Paris, she was designing her own pieces, many of them musically inspired, they are designed to emulate the elegance of Place Vendôme’s haute at age 25. “I started with something simple, shapes like a cello hole or joailliers, and the attitude of at least one of them. She says she admires music notes,” she recalls. “But my teacher told me it was too literal.” JAR’s Joel Rosenthal’s selective process and has turned away at least two Six years later, Hu, who two years ago opened an appointment-only prospective clients. “I like to know where they come from,” says Hu. “If salon in Taiwan and estimates that about 50 percent of her work is someone is into comparing prices, then it’s hard for me to work with them. custom, prides herself on offering a rarefi ed experience along with A ring and cuff It’s all about chemistry. Certain people click with certain jewelry.” rare gems. Treated stones simply won’t do. “In the industry, I’m from Anna Hu. — Jessica Iredale WWD, MONDAY, DECEMBER 15, 2008 19 WWD.COM Wholesale Apparel Prices Inch Forward 0.2 Percent Stores See Small Rise in Sales in November By Liza Casabona WASHINGTON — Black Friday promotions is severe and worsening, but…the pace of that year, and it’s not going to be one we will want helped eke out small increases for retailers in worsening does not appear to have quickened to remember, but things are not as dire as we WASHINGTON — Wholesale pric- November, but sales weren’t strong enough to noticeably in retail sales during November.” expected just a few weeks ago. However, in- es for domestically made ap- boost results compared with a year earlier. “Thanksgiving came too late in the month dividual retailers will suffer. We are seeing parel increased 0.2 percent Sales at specialty apparel retailers rose for retailers to see strong November sales,” plenty of signs of that.” in November from the previ- 0.8 percent in November compared with said Rosalind Wells, chief economist for the Yamarone said despite some optimism ous month, and rose 0.9 per- October, while department stores increased National Retail Federation. “With fi ve fewer following November sales results, driven cent year-over-year, the Labor sales 2.1 percent, the Commerce Department days between Thanksgiving and Christmas largely by promotional activity, some retail- Department said Friday in its reported Friday. this year, the holiday season will come down ers may not be around at the end of January. Producer Price Index. Compared with November 2007, apparel to December’s performance.” With rampant joblessness, falling prices and Prices for women’s and and accessories store sales fell 5.8 percent Despite shopping activity generated by a consumer pullback, it would be naïve not girls’ apparel rose 0.2 percent to $18.02 billion and department stores de- Black Friday, consumers were reluctant to to expect more retail failures, he added. last month, and were fl at com- clined 4.6 percent to $16.57 billion. Overall spend during the rest of the month, the NRF “The November report on retail sales pared with last year. Men’s and retail and food service providers reported a said. That means the bulk of holiday sales must suggests that while consumer spending is in- boys’ domestic apparel prices seasonally adjusted decrease of 1.8 percent now come this month. The NRF predicts mea- deed weak, aggressive discounting seems to increased 0.1 percent from the from October to $355.7 billion. Sales tum- ger holiday sales growth of 2.2 percent for the be working in terms of keeping consumers previous month and 1.6 percent bled 7.4 percent from a year earlier. combined November-December time period. engaged during the peak retail season,” said from November 2007. Charles McMillion, president and chief “Retail is holding up well,” said Richard Brian Bethune, chief U.S. fi nancial economist Prices for all goods manufac- economist at MBG Information Services, said Yamarone, chief economist at Argus at IHS Global Insight. tured in the U.S. fell 2.2 percent the “retail sales report shows that the slump Research Corp. “It’s not going to be a banner — L.C. in November, the second consecutive month of falling numbers. The decline was driven primarily by lower energy prices. Along with energy, the overall domestic price index has declined, a trend that is expected to work its way through the pipe- SPRING SHOPPING line to other goods if fuel and IN NEW YORK CITY commodity costs continue to go down, said Patrick Newport, U.S. economist for Global Insight. There is concern that falling January 46, 2009 prices could fuel a defl ationary Javits Center, Manhattan cycle. In apparel, the PPI is not a true indicator of price fl uctuations, since only a small percentage of goods are made in the U.S. “Although defl ationary prices outside the energy sector did not appear to be widespread in Over 3,200 of the best juried lines in November, the evidence is that those pressures are worsening rapidly further down the pipeline ReadyToWear and Accessories and could be felt in coming months if supplies continue to outstrip de- Under one roof accessible with one badge mand,” said Charles McMillion, president and chief economist, MBG Information Services. Producer prices for women’s knit shirts and blouses increased 1 percent from October and 0.8 percent in 12-month comparisons. Women’s woven shirts and blouses rose 0.2 percent from the previous month, and were up 3.9 percent compared with a year earlier. Dresses increased 1,800+ JURIED ACCESSORIES 0.4 percent in November, and were up 1.9 percent compared with November 2007. Wholesale prices for men’s and boys’ work shirts, work clothing and knit shirts were fl at in November. In yearly comparisons, costs increased 3.9, 0.8 and 0.3 percent, respectively. Woven shirts and suits both rose 0.4 percent compared with the previous month, and were up 2.4 and 4.6 percent, respec- 600+ JURIED COLLECTIONS tively, in 12-month comparisons. Tailored sport coats and vests increased 1.1 percent, and rose 6.6 percent year-over-year. November prices for textile mill products, mostly apparel fabric, increased 0.1 percent from October and spiked 5.4 800+ JUNIOR & YOUNG CONTEMPORARY percent from the previous year. Prices for home furnishing and industrial fabrics, also called textile product mills, increased 0.1 percent and were up 3.6 percent year-over-year. Attend: 8666966020 Deeper in the pipeline do- Exhibit: 2126864412 mestic costs for synthetic fi bers dropped 1.5 percent from the previous month, but increased 0.9 accessoriestheshow.com percent year-over-year. Yarn prices dropped 0.9 percent, but spiked modamanhattan.com 6.5 percent from November 2007. fameshows.com Greige fabrics climbed 0.1 percent, and increased 3.1 percent from a year earlier. Prices for fi nished Properties of Business Journals, Inc. fabrics were up 0.2 percent in month-to-month comparisons, and increased 5.7 percent in the year. 20 WWD, MONDAY, DECEMBER 15, 2008 WWD.COM Financial For full daily stock changes, see WWD.com. WEEKLY STOCKS Are Store-Branded Cards 52-WEEK VOLUME AMT 52-WEEK VOLUME AMT High Low Companies P/E Last Change High Low Companies P/E Last Change The Next Shoe to Drop? 83.98 13.66 Abercrombie & Fitch (ANF) 4.3 22692353 21.07 1.80 51.42 13.95 J.C. Penney (JCP) 5.8 25463264 20.51 -0.07 28.23 9.04 Acadia (AKR) 11.2 2025817 14.23 0.67 7.70 2.88 Jaclyn (JCLY) - 1048 4.79 1.91 By Evan Clark 3.78 0.47 Aeffe * (AEF:MI) - 385773 0.63 -0.01 1.67 0.24 Joe’s Jeans (JOEZ) 3.2 632904 0.29 -0.06 37.40 12.52 Aéropostale (ARO) 7.1 14192685 15.37 -1.88 22.12 2.34 Jones Apparel (JNY) - 9742607 5.42 -0.48 FORGET WALL STREET — CONSUMERS HAVE THEIR 29.40 19.32 Alberto Culver (ACV) 9.7 4836362 23.37 1.55 50.58 15.38 Jos. A. Bank (JOSB) 8.6 2471664 26.23 1.20 own credit crunch to worry about with store-branded 16.22 2.45 American Apparel (APP) 9.3 3866994 3.24 -0.05 19.74 5.78 Kenneth Cole (KCP) - 621574 8.21 -0.11 charge cards and it’s about to get worse, according to a 23.84 6.98 American Eagle (AEO) 7.0 19508617 9.99 0.26 47.80 9.56 Kimco Realty (KIM) 11.6 47716039 15.99 -0.29 new report from Fitch Ratings. 29.23 3.74 Ann Taylor (ANN) 9.5 8468340 5.98 0.35 56.00 24.28 Kohl’s (KSS) 11.4 27762886 35.35 -0.27 “Rising delinquencies will pressure card issuers 420.00 112.50 Asos * (ASC:L) 29.1 3504899 249.00 9.75 20.76 9.93 K-Swiss (KSWS) 11.5 1377585 11.52 -1.84 and their retail partners during the coming year as 45.34 17.45 Avon (AVP) 17.6 20986614 23.12 1.12 18.98 9.47 LaCrosse Footwear (BOOT) 12.2 5773 14.25 1.85 Fitch expects a scenario akin to nearly one in eight 13.83 4.57 Bebe (BEBE) 9.7 2073258 6.47 -0.13 22.16 6.90 Limited Brands (LTD) 5.4 29703336 8.64 -0.70 cardholders defaulting on their store cards,” said Mike Dean, managing director. 56.72 32.32 Beiersdorf * (BEI:HM) 18.8 3881909 40.85 -0.79 22.82 1.46 Liz Claiborne (LIZ) - 16171655 3.28 0.49 The ratio of cards that were more than 60 days 13.30 4.80 Benetton Group * (BEN:MI) 6.7 651626 5.55 0.15 7.05 0.35 LJ Intl. (JADE) 11.6 424697 0.91 0.27 delinquent in November rose to 4.8 percent, up sub- 6.25 0.42 Birks & Mayors (BMJ) 0.5 17615 0.58 -0.04 99.97 53.32 L’Oréal * (OR:PA) 13.3 7124993 61.14 1.10 stantially from 3.9 percent in August and 3.7 percent 44.29 26.36 BJs (BJ) 15.8 13013754 34.98 -4.44 50.60 6.96 Lululemon (LULU) 11.6 7220797 7.45 -3.34 in November 2007, according to Fitch’s Credit Card 0.29 0.08 Blue (BLHI) - 52530 0.13 -0.06 26.66 12.51 Luxottica * (LUX:MI) 14.3 3957146 14.04 -0.16 Index. Most of the cards in the index can only be used 9.00 0.61 Bluefl y (BFLY) - 160884 0.88 -0.06 89.36 38.10 LVMH * (MC:PA) 11.1 10902878 46.66 5.20 at the store that issued them. 12.85 0.76 Bon-Ton (BONT) - 1147429 1.30 0.11 77.23 8.31 Macerich (MAC) 5.4 26477707 14.29 3.36 Many retailers have branded credit cards and 18.44 4.34 Brown Shoe (BWS) 7.4 2937239 6.18 -0.10 29.08 5.07 Macy’s Inc. (M) 5.1 65968618 8.50 -0.11 use them for targeted marketing programs and re- 44.57 13.57 Buckle (BKE) 10.4 4915398 21.56 -2.19 17.59 6.25 Maidenform (MFB) 7.7 537101 9.78 0.13 search, but few chains outside of Target Corp. or 11.48 4.25 Bulgari * (BUL:MI) 11.1 4273116 4.67 0.17 669.00 191.90 Marks & Spencer * (MKS:L) 5.8 58576440 223.75 10.00 Nordstrom Inc. continue to handle the fi nancial end 686.50 154.75 Burberry * (BRBY:L) 7.0 27004971 210.00 14.00 31.57 8.33 Men’s Wearhouse (MW) 9.4 7094302 13.10 0.33 of the business. The rising delinquencies among store credit 16.29 4.18 Cabela’s (CAB) 5.1 1955127 7.07 0.76 20.21 6.07 Mothers Work (MWRK) - 27320 8.44 0.05 cards mean some retailers’ most loyal shoppers are 14.86 1.41 Caché (CACH) 10.0 2167108 2.05 0.42 30.78 6.52 Movado (MOV) 4.0 5098659 7.50 -2.47 having trouble meeting their fi nancial obligations 54.20 24.16 Carrefour * (CA:PA) 10.8 19205401 28.51 1.39 25.00 10.03 National Retail Prop. (NNN) 7.9 11508790 14.43 0.35 and could be paying off other, more widely used 22.39 11.94 Carter (CRI) 14.2 4847814 18.58 -1.01 12.12 0.82 New York & Co. (NWY) 7.8 2437780 1.82 0.00 credit cards fi rst, said Cynthia Ullrich, senior di- 6.48 0.35 Casual Male (CMRG) - 1090500 0.61 0.01 5.90 0.07 NexCen (NEXC) - 2602438 0.08 0.00 rector at Fitch. 19.38 11.30 Cato (CTR) 13.8 955462 14.44 0.15 70.60 42.68 Nike (NKE) 13.4 26969371 49.37 -3.97 “In the current economic situation, [consumers] 27.55 2.53 CBL (CBL) 9.8 14153081 5.93 1.74 2.33 0.03 Nitches (NICH) - 94330 0.31 0.00 might have less utility for a retailer-specifi c credit 9.95 3.01 CCA (CAW) 6.2 42765 3.50 -0.11 40.59 6.61 Nordstrom (JWN) 5.2 30072512 12.66 -0.14 card,” Ullrich said. “At some point, if you don’t have 2.64 0.18 Charles & Colvard (CTHR) - 1093683 0.25 0.00 9.10 5.68 Orchids Paper (TIS) 12.6 13780 7.17 -0.32 enough money, you’re not going to go to Ann Taylor to 20.61 3.98 Charlotte Russe (CHIC) 6.5 1345055 5.46 -0.48 29.88 4.58 Oxford (OXM) 4.9 1573188 5.26 -0.88 get a sweater.” Since most retailers don’t own the back end of 7.00 0.57 Charming Shoppes (CHRS) - 6444997 1.66 0.06 15.90 1.01 Pacifi c Sunwear (PSUN) - 5599702 1.74 -0.15 the business, they aren’t going to get caught with the 82.17 57.10 Chattem (CHTT) 18.7 2073072 64.60 -5.02 7.15 2.42 Parlux Fragrances (PARL) 36.2 317118 2.93 0.13 bad debt on their balance sheets when consumers 36.97 11.55 Cherokee (CHKE) 9.1 256911 16.40 1.14 32.68 2.21 Penn Real Estate (PEI) - 7294680 4.54 0.23 don’t pay. 10.92 1.72 Chico’s (CHS) 21.5 26100976 3.55 0.11 29.27 3.40 Perry Ellis (PERY) 5.4 1284630 6.84 0.02 Retailers might end up paying, though, in the 43.40 14.92 Children’s Place (PLCE) - 3416644 21.61 -1.27 47.94 13.04 Phillips-Van Heusen (PVH) 5.8 4217458 18.23 -1.80 form of lower sales as shoppers fi nd they have one 14.90 2.46 Christopher & Banks (CBK) 9.9 1374670 4.09 0.04 2.37 0.35 Phoenix Footwear (PXG) 0.6 3315 0.54 0.04 less place to turn should they lose their card privi- 34.98 19.51 Cintas (CTAS) 11.2 8404239 24.88 0.01 82.02 31.22 Polo Ralph Lauren (RL) 9.5 10067325 44.29 -4.27 leges. 28.12 7.01 Citi Trends (CTRN) 12.1 1168485 13.31 -0.17 141.50 31.06 PPR * (PP:PA) 4.6 6161159 40.01 7.56 “That’s a source of liquidity for the consumers that 37.64 13.19 Coach (COH) 9.2 38247881 20.25 0.56 33.67 10.35 PriceSmart (PSMT) 14.0 1499162 18.74 2.17 they’re not going to have anymore,” Ullrich said. 8.31 0.91 Coldwater Creek (CWTR) - 5255876 2.77 0.58 11.06 0.80 Quiksilver (ZQK) - 9787474 1.53 0.33 For card issuers, charge-offs for bad debt are ex- 81.98 54.36 Colgate Palmolive (CL) 16.8 19626023 59.22 -3.79 8.84 4.96 R.G. Barry (DFZ) 7.6 53588 5.01 0.05 pected to surpass 12 percent in the fi rst half next year, rising from 9.1 percent last month and 6.5 percent in 21.00 3.85 Collective Brands (PSS) 20.6 6118300 10.27 -0.08 24.67 3.45 Ramco-Gershenson (RPT) 4.2 819006 6.40 1.89 November 2007. 49.49 26.07 Columbia Sprtswr (COLM) 9.8 1529123 34.54 -0.75 73.55 23.36 Regency Centers (REG) 14.1 12771318 37.03 0.68 This is one crunch, however, that shouldn’t imme- 75.23 43.88 Costco (COST) 18.0 39644436 53.40 -2.18 7.46 0.90 Retail Ventures (RVI) 0.8 2494724 1.50 0.51 diately worry investors, at least those primarily con- 42.45 0.79 Crocs (CROX) - 7812052 1.52 0.14 14.85 0.67 Revlon (REV) 3.0 984902 6.06 -1.14 cerned with asset-backed securities tied to credit card 0.18 0.02 Cygne Designs (CYDS) - 36436 0.05 -0.03 83.00 16.88 Richemont * (CFR:VX) 4.8 12389164 21.76 2.84 receivables. The credit ratings on such securities are 166.50 46.27 Deckers Outdoor (DECK) 12.4 4432209 66.42 -2.48 41.56 21.23 Ross Stores (ROST) 12.0 10348806 27.96 -1.37 not expected to be hurt in the near term, the rating 3.50 1.50 Delia’s (DLIA) 180.0 512049 1.75 -0.25 3.72 0.44 Safi lo * (SFL:MI) 6.6 1938239 0.59 0.01 agency said. 9.34 2.09 Delta Apparel (DLA) 19.5 14805 3.86 0.11 22.19 2.67 Saks (SKS) - 8238568 4.36 -0.93 Fitch tracks more than $72 billion in principal 45.66 1.73 Developers Diversifi ed (DDR) 4.9 36497586 5.69 0.73 114.00 26.80 Sears (SHLD) 23.0 6005127 45.16 -1.46 receivables backing about $40 billion of retail or 23.11 2.50 Dillard’s (DDS) - 4072391 3.87 -0.19 106.43 33.78 Simon Properties (SPG) 27.2 44113096 52.00 -0.21 private label credit card-backed securities. Among 17.93 6.16 Dress Barn (DBRN) 7.6 3837013 9.11 0.36 25.20 9.25 Skechers (SKX) 5.6 2774483 10.99 -0.02 the largest issuers in Fitch’s Credit Card Index are Citibank Omni Master Trust and GE Private Label 20.69 7.30 DSW (DSW) 12.3 1571712 10.04 -0.49 3.37 0.17 Sport-Haley (SPOR) - 53363 0.32 0.05 Master Trust. The retailers include Wal-Mart Stores 33.00 8.50 Duckwall-Alco (DUCK) - 17700 10.21 -0.02 6.71 1.03 Stein Mart (SMRT) - 840607 1.18 -0.07 Inc., Sears Holdings Corp., Macy’s Inc., J.C. Penney 8.72 0.30 Eddie Bauer (EBHI) - 2752709 0.43 -0.14 29.00 13.37 Steve Madden (SHOO) 13.9 1101992 20.03 -1.61 Co. Inc. and Limited Brands Inc. 21.89 10.55 Elizabeth Arden (RDEN) 64.0 986804 13.03 -0.80 76.50 23.20 Swatch Group * (UHRN:SW) - 1437694 29.20 1.70 54.75 24.24 Estée Lauder (EL) 11.7 12926441 29.60 1.49 17.86 7.30 Syms (SYMS) 171.0 52437 9.18 0.79 32.50 14.62 Family Dollar (FDO) 14.1 21849276 24.51 -0.58 17.97 1.19 Talbots (TLB) - 2592462 2.12 -0.51 WEEKLY 12.43 1.48 Finish Line (FINL) - 3304329 5.66 -0.03 10.62 1.75 Tandy Brands (TBAC) - 43762 2.05 -0.22 45.00 11.51 Fossil (FOSL) 6.8 3474373 13.80 -0.33 3.67 1.70 Tandy Leather Factory (TLF) 7.7 10092 1.86 0.07 CHANGE WWD 4.25 0.16 Frederick’s of Hollywood (FOH) - 60451 0.22 -0.03 46.30 24.62 Tanger Factory Outlet (SKT) 47.1 5067802 36.97 1.06 ENDING 15.91 7.71 Freds (FRED) 42.5 2713598 11.00 -0.11 59.55 25.60 Target (TGT) 11.5 92970731 35.84 0.88 ( DEC. 12 ) INDEX 196.75 30.00 French Connection * (FCCN:L) 97.4 1426431 37.25 1.00 1.30 0.21 Tarrant Apparel (TAGS) - 29450 0.38 -0.12 % 22.02 9.41 Gap (GPS) 9.5 62953008 13.19 -0.82 92.35 17.47 Taubman (TCO) 36.3 10878548 27.44 1.98 46.59 0.24 General Growth (GGP) 6.5 63450873 1.80 0.15 5.76 0.40 Tefron (TFR) - 79926 0.50 -0.10 Gainers Change COMPOSITE 39.38 10.37 Genesco (GCO) 2.6 2989204 13.58 -1.85 49.98 16.75 Tiffany & Co. (TIF) 9.9 15262888 22.81 -0.89 Jaclyn 66.32 714.28 23.00 4.91 G-III Apparel (GIII) 4.6 1671562 4.98 -1.51 19.72 7.19 Timberland (TBL) 12.0 1873300 11.16 -0.49 Retail Ventures 51.52 42.74 7.76 Gildan Activewear (GIL) 6.8 22117612 8.78 -5.20 37.52 17.80 TJX Cos. (TJX) 9.5 28837031 19.80 -0.28 LJ Intl. 42.19 17.36 0.75 Glimcher (GRT) - 1791910 3.16 0.17 64.48 29.12 Tod’s * (TOD:MI) 11.5 91378 31.20 0.54 Ramco-Gershenson 41.91 40.90 18.73 G&K (GKSR) 11.6 652400 21.22 -1.53 31.82 9.83 True Religion (TRLG) 6.8 3817572 11.15 -1.97 0.96 0.22 Gottschalks (GOTT) - 953344 0.44 -0.16 33.73 2.07 Tween Brands (TWB) 5.9 1324341 4.29 -0.25 CBL 41.53 45.21 10.26 Guess (GES) 6.3 9420282 14.83 -0.02 48.53 16.05 Under Armour (UA) 27.0 4835784 25.98 -0.24 47.69 16.48 Gymboree (GYMB) 7.3 5412565 23.67 -3.83 5.43 1.80 Unifi (UFI) - 1830451 4.10 -0.70 Decliners Change 14.75 2.20 Hampshire (HAMP) - 460 4.00 0.00 38.25 20.22 Unilever (UL) - 6204442 22.08 0.02 Gildan Activewear -37.20 37.73 8.54 Hanesbrands (HBI) 6.6 11728923 10.21 -2.86 38.40 12.33 Urban Outfi tters (URBN) 12.1 38877036 15.33 -5.22 Lululemon -30.95 0.30 0.08 Hartmarx (HTMX) - 1143195 0.11 0.00 84.60 38.22 VF Corp. (VFC) 8.9 5356961 53.06 -1.68 Blue -30.56 433.50 239.50 Hennes & Mauritz * (HMB:ST) 17.5 22690862 307.00 25.00 28.88 6.39 Volcom (VLCM) 6.2 1695269 10.01 -0.86 131.89 59.42 Hermès * (RMS:PA) 39.8 1130260 104.76 5.77 63.85 43.11 Wal-Mart (WMT) 15.9 126072030 54.63 -3.58 Gottschalks -26.05 -29.27 8.98 3.90 Hot Topic (HOTT) 18.9 5412878 7.73 -0.75 53.89 12.22 Warnaco (WRC) 8.9 5438294 16.47 -2.92 Urban Outfitters -25.40 24.43 13.27 IAC Interactive (IACI) - 13071709 16.53 1.37 40.00 8.27 Weingarten (WRI) 7.9 18179016 18.76 3.04 22.80 5.11 Iconix (ICON) 7.1 2762301 8.66 0.01 5.54 1.81 Wet Seal (WTSLA) 5.9 9908070 2.29 -0.15 * Editor’s note: European stocks are quoted in the currency of 53.90 23.29 Inditex * (ITX:MC) 15.0 18752481 30.83 5.48 41.99 23.82 Weyco (WEYS) 16.7 137686 32.87 1.59 their principal exchanges. Shares on the London Stock Exchange 19.96 5.04 Inter Parfums (IPAR) 8.2 824862 7.76 1.92 31.21 16.24 Wolverine (WWW) 10.0 2587710 19.95 -0.04 are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs and Hennes & Mauritz is quoted in Swedish 1.96 0.17 IT Holding * (ITH:MI) - 6440311 0.24 -0.04 30.89 3.62 Zale (ZLC) 21.5 7053743 3.19 -0.90 kronor. All other European stocks are in euros. 51.96 8.02 J. Crew (JCG) 8.5 10367640 12.81 0.37 28.84 4.50 Zumiez (ZUMZ) 10.6 1498890 8.38 -0.69 WWD, MONDAY, DECEMBER 15, 2008 21 WWD.COM MEMO PAD Another Setback for Doha Talks By John Zarocostas ON THE STREETS: DKNY Jeans hit the streets for spring. The brand’s new ad campaign, conceived by Laird + Partners, was shot by Scott Schuman in his famous “The Sartorialist” format. The ads showcase a mix of New GENEVA — Renewed efforts to broker a breakthrough deal in York notables including Sean Lennon, Daisy Lowe, DJ Coleman, Luc Worrell and Chanel Iman. The campaign is a the troubled Doha global trade talks by yearend and lower departure for the DKNY Jeans brand (which is owned by Liz Claiborne Inc.). Not only is this Schuman’s fi rst time barriers to trade in agriculture and industrial goods were de- shooting for the brand (and his fi rst time shooting a major campaign), but the ads present the collection with one railed Friday. or two individuals in each image, rather than in the usual group format. Bitter differences among the U.S., Brazil, China and India Patti Cohen, executive vice president of marketing and communications for Donna Karan International, said the over slashing duties more aggressively in select industrial sec- campaign refl ects everything that Karan thinks about when she thinks of denim. “Donna always says that jeans are tors, and largely between the U.S. and India over terms for a not about a season, but rather part of your skin, something you can’t live without,” Cohen said. “So we wanted to special safeguard to shield poor farmers from surges in im- make a personal statement about jeans and fashion and Scott seemed so perfect to shoot this. He brings such a ports, torpedoed hopes of calling ministers to Geneva to close freshness to street style.” a deal before the Christmas break. The ads each showcase an individual in a caught-on-the- Round-the-clock diplomacy by World Trade Organization street style in several areas of the city. The idea, Cohen said, director-general Pascal Lamy, which included video confer- was to highlight a broad spectrum of personal styles, which ences with U.S. Trade Representative Susan Schwab and her can easily be translated from the streets of New York to a counterparts from India and China, and direct interventions of suburban mall. national leaders such as British Prime Minister Gordon Brown, Despite the recession, Cohen said the company isn’t planning couldn’t bridge the political divide. to cut back on advertising for the DKNY Jeans brand. She said the As a result, Lamy decided not to call ministers to Geneva be- ads will hit for spring, beginning with the February issues of such cause, as he told delegates from 153 WTO countries, such a deci- books as In Style, Elle, GQ and Details as well as online and on sion “would be running an unacceptably high risk of failure.” billboards across the U.S., Mexico and Canada. — Julee Kaplan He continued, “My sense is that we should now focus on seeing how we gather the necessary political energy into the A NEW MODEL: OpenGate Capital is seeking acquisitions in new year.” the media and fashion industries, and during the past month, The latest setback comes less than a month after world the fi rm has acquired TV Guide Magazine and now, Models 1, leaders from 20 major rich and emerging powers, meeting in The spring DKNY Jeans campaign. the largest model and talent agency in the U.K. and Europe, Washington over the global fi nancial crisis, instructed trade which has a roster including Agyness Deyn, Amber Valletta, ministers to strive for a deal by yearend. Trade ministers from Linda Evangelista and Karolina Kurkova. OpenGate founder more than 30 key nations failed in July to secure a break- and managing partner Andrew Nikou said the fi rm wants to invest in companies with strong brand equity and a through agreement. Similar efforts failed in the summers of solid track record, adding that he is pursuing opportunities in high fashion, including a “very well-known luxury 2006 and 2007. handbag business.” He declined to reveal more details. — Amy Wicks “We are disappointed the director-general was not able to establish a basis for a productive ministerial that would lead STELLA AND KATE: Stella McCartney took on the reporting duties for In Style’s January cover to an ambitious and balanced Doha outcome,” said a spokes- story on Kate Hudson, for a piece the magazine is calling “her most revealing interview yet.” woman for Schwab. McCartney talks to Hudson about her new movie with Anne Hathaway and life as a single Brazil’s foreign minister, Celso Amorim, echoing concerns parent. “I feel good in relationships. I enjoy them, so I feel my best when I’m in something shared by China and India, blamed the latest setback on “ex- solid. But it’s also the fi rst time I’ve ever taken a step back and gotten a new perspective. So cessive demands” by the U.S. in select industrial sectors. I’ve made a conscious decision to try to stay single as long as possible,” said Hudson. Deputy USTR Peter Allgeier dismissed the claims as “inac- This is the fi rst time a designer has interviewed a celebrity for one of In Style’s covers curate” and, alluding to the big three emerging nations, noted — but will this become a more regular format for magazine cover stories? “Yes, we would they have not taken seriously efforts to slash duties deeper in certainly pair up celebrities again,” said managing editor Ariel Foxman. “It’s our goal to get some industrial sectors. Allgeier said, “They’re unwilling to the most entertaining and candid interview and this is a fun way to go about it.” The issue identify even a single sectorial that they’re willing to negotiate goes on sale on Friday. — A.W. on, putting aside whether they will join them.”

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based in New York and report to Bud Konheim, IN BRIEF chief executive ofﬁ cer. LVMH Adds to Stable • WINNING STYLE: Samsung Cheil Industries Inc. revealed the winners of the 2009 Samsung • MALL SHOOTER SENTENCED: A gunman who shot a Fashion & Design Fund. They are Bensoni de- woman in the face in the parking lot of NorthPark With Montaudon Buy signers Sonia Yoon and Benjamin Channing Center in Dallas has been sentenced to 50 years Clyburn, men’s wear designer Juun J and in prison. A jury in Dallas County Court convicted By Robert Murphy Gryphon designer Aimee Cho. The fund cel- Demond Stuard, 29, of aggravated robbery with a ebrates emerging designers of Korean descent deadly weapon in the May shooting of Mary Boyd, PARIS — LVMH Moët Hennessy Louis Vuitton on Friday said it acquired worldwide. Past winners include Doo-Ri Chung, 44. Boyd testified that Stuard had startled her by France’s Montaudon Champagne house, regarded for exclusive vintages. Richard Chai, Koeun Park, Sang-A Im-Propp for banging on the window and that she wasn’t sure Terms of the deal were not disclosed. Sang A, Gunhyo Kim for Il Galantuomo and Steve if he wanted to rob her or steal her vehicle. He Montaudon, which employs 29 people, joins LVMH’s already Jung and Yoni Pai for Steve J & Yoni P. shot her through the window, but she managed to formidable stable of Champagne houses, which includes Dom drive to a valet parking stand to get help. Pérignon, Moët et Chandon, Veuve Clicquot Ponsardin, Krug, • MILLER TAPS TWO: Nicole Miller has promoted Ruinart and Mercier. David Weissman and Sandy Yoon-Krupkin to • GRAMICCI TAPS DESIGN DIRECTOR: Outdoor “The acquisition of Montaudon enables us to complete our portfo- senior vice president, sales and retail. They lifestyle brand Gramicci has named Dreanna lio,” said Christophe Navarre, chairman of Moët Hennessy, LVMH’s replace Lara Piropato, who left the company Bane as design director. Bane, 46, began her wines and spirits division. “This corresponds with Moët Hennessy’s last week. Most recently, Weissman served as career in 1991 at Guess Inc., and has served as strategy to strengthen its worldwide leadership in the luxury wines director of sales for the New York ofﬁ ce, and a designer/merchandiser for Lucky Brand and and spirits sector.” Yoon-Krupkin was director of sales for interna- Safety Clothing Co. Most recently, she worked LVMH has continued to solidify its brand portfolio despite the eco- tional. Together they will oversee the compa- as a freelance designer. Based in Agoura Hills, nomic crisis. Earlier this year, the group, headed by French billionaire ny’s wholesale business, manage its network of Calif., Bane reports to Gramicci president Marty Bernard Arnault, purchased the luxury watch brand Hublot, as well as freestanding stores and expand its e-commerce Weening. Bane replaced Sarah Mark, who relo- yacht builder Royal van Lent. capability. Weissman and Yoon-Krupkin are cated with her husband to Africa.

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sales of prescription drugs, as well as that Wal-Mart shouldn’t be involved in that, Wal-Mart CEO Talks Economy on ‘Meet the Press’ increasing their food storage and use of and I think they are just wrong,” said Scott. leftovers, according to Scott. “I think today, more than ever, we have a By Kristi Ellis pected to include a massive job works pro- “Consumers are in fact changing their responsibility to participate and I don’t gram and tax relief for the middle class. behavior,” he said. “We’re optimistic over mean on the negative side, participating by WASHINGTON — H. Lee Scott, president Scott said consumers have noticeably the long term. Certainly the next few just being critical of what is proposed, but and chief executive officer of Wal-Mart changed their shopping behavior at Wal- months are going to be very challenging.” by being a partner in these solutions.” Stores Inc., said Sunday he expects the Mart stores, which has thus far bucked the NBC host Gregory, noting that Wal- Scott also said the new president and recession to present challenges in the trend and reported sales growth as other Mart has been criticized on health care is- Congress need to have a long-term out- short term as consumers scale back pur- retailers struggle with lagging consumer sues and on “driving down wages,” asked look, beyond the proposed economic stim- chases amidst intensifying job insecurity. demand and dismal economic news. Scott whether the retail giant should have ulus package, to turn the country around. Participating in a roundtable discus- “We’re seeing that our customers have a a responsibility in helping the govern- Asked what kind of indicator would tell sion on NBC’s “Meet the Press” with great deal of faith that the government will ment with the employment picture. him whether the economy is worsening new host David Gregory, Scott addressed ultimately take the right action and be suc- “Well, we’ve been fortunate with our or improving, Scott said he relies on his a wide range of economic issues, rang- cessful in addressing the current situation business to have added 30,000 jobs here international sales reports, as well as the ing from changing consumer buying pat- but the number-one issue today is their in the U.S.,” said Scott, noting the com- individual purchases in the stores. terns, to government intervention in the concern about their jobs,” said Scott. pany has also improved its health care “What we’ll be looking for is that the home mortgage market, to a multibillion- Wal-Mart customers are ﬁ nding ways options to its employees. Wal-Mart mom is conﬁ dent that the fu- dollar economic stimulus package that to save money by increasing “self-treat- “We get, quite honestly, some people ture and the money that is available to President-elect Barack Obama is prepar- ment” of health problems, which has low- who say we shouldn’t push for this energy her will continue to improve and then ing with Democratic leaders and is ex- ered the rate of growth in the company’s policy, for this reform in health care and we’ll see it in our sales,” Scott said.

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For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise.

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Thor- street flair and sells Macy’s 4th fl etc. Must be able to open new accounts. ough knowledge of construction of Email resumes to [email protected] Req: 4+ yrs design expr. includ Junior garments and quality control. mrkt, strong Illust/Photo skills, trendy. [email protected] 973-564-9236 E-mail resumes: [email protected] SR. Account Manager (Fax) 917-591-2521 (Tel) 914-337-3660 PRODUCTION ASSISTANT $40-45k. DENIM SALES EXECUTIVE - Juniors Intimate Apparel Industry Cash For Retail Stock & Closeouts. EXCESS INVENTORY BUYER Min 1yr exp in entering PO’s. Receiving Est’d men’s denim line is expanding to Major Co. w/ multiple Divisions/ Brands No Lot Too Big or Too Small. Immediate Cash/No Inventory Too Large of shipments, track sample requests, Jrs mrkt & seeks exec for sales to mid- Candidates must have proven track re- Call CLOTHES-OUT: No Hassle/Integrity Driven/Closeouts Needed DESIGNER TO $70K etc. Strong in Excel + computer skills tier & chains. Salary DOE + comm. 3 cord & currently shipping intimate ap- (937) 898-2975 901-338-6364 www.fusioninternational.net Girls 7-16 Knits. PhotoShop/Illus. required. Northern NJ co. yrs sales exp in Jr’s denim. Must travel. parel to Wal-Mart, Kmart, Macys [email protected] [email protected] [email protected] 973-564-9236 [email protected] [email protected] (confidential) Is love the only constant in an ever- changing world?

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the De Beers Family of Companies WWDYEAR‘ INFASHION SECTION II 0 The Meltdown The world faces a new reality.8 2 WWD, MONDAY, DECEMBER 15, 2008

SECTION II YEAR IN FASHION The Meltdown The economy was ailing for most of the year, but dramatically plunged in the fall, affecting U.S. as well as world markets, employment and overall consumerism. By Evan Clark

THE FINANCIAL CRISIS MEANS MORE TO FASHION THAN LEAN TIMES AND FEWER Home values have plunged and foreclosures have continued to rise as job losses mount. dollars in the till. Through November, 1.9 million jobs were wiped off the nation’s payrolls and unemployment rose Wall Street’s implosion, the economy’s nosedive and shifting attitudes toward saving and to 6.7 percent. Following weeks of cable news coverage of bailouts and blowouts, there was little spending seem destined to reshape the industry. surprise when the Conference Board reported an all-time low in consumer confi dence in October. For starters, fashion is still very much in the grip of the credit squeeze that began throttling Shares in the Standard & Poor’s Retail Index fell 8.5 percent in September, 17 percent in banks in September before spreading out to the broader world. October and a further 12.6 percent in November as volatile markets snapped scores of trading How strict lenders are with their cash and how severe the recession gets are the X factors records with sharp declines and short-lived rallies. that will determine how dramatic a shake-up the fashion business faces in 2009 and beyond. “People are scared,” said Bill Rhodes, chief investment strategist at Rhodes Analytics, in Already, shoppers and brands across the price spectrum — even in the once-insulated early October. “Uncertainty is very high and markets hate uncertainty, so what they’re doing is luxury market — are feeling the pinch. selling into it.” “No social or economic class is immune from this crisis,” said Lew Frankfort, chairman and chief executive offi cer of Coach Inc., in October. “The consumer is fragile. She’s worried about her future. She’s worried about her security. She’s visiting malls and stores less frequently.” What this means next year for major retailers and their employees, landlords, banks, producers, raw material suppliers and customers, remains to be seen. Additional store closures, layoffs and bankruptcies seem to be a given. “We’re going to go back to a 1950-, 1960-type mentality, where you save a percentage of your take-home pay to start and you live within your means beyond that,” said Paul Nolte, director of investments at Hinsdale Associates. “That’s going to be a tough one for the Baby Boomers because they haven’t had to do that.” Major changes for fashion are still largely in the future. This fall, most of the action was in the fi nancial sphere. Bad bets on subprime mortgages snowballed as they passed through interconnected banks. Although Bear Stearns was an early victim, getting absorbed by J.P. Morgan Chase in March, the infection festered until mid- September, when Lehman Brothers went belly up — clogging monetary arteries as everyone wondered how much the banks owed to each other. Then, in stunning but short order, Uncle Sam took direct stakes in giants such as Citigroup Inc. and arranged mergers between beleaguered competitors. Washington Mutual weighed in with the largest bank failure ever. Oddly enough, the cost of energy, seen as the dark cloud as prices at the pump soared to more than $4 a gallon and kept consumers away from malls in the summer, would be one of the few silver linings as the year ended — the average cost of a gallon of unleaded plummeted to $1.68 as December began. Economic uncertainty replaced the high price of driving as a shopping disincentive. Fashion, and the ills it suffered, has so far been collateral damage in the larger fray. Still, it’s been a devastating few months. Stocks plunged all around the world. Here, the New York Stock Exchange. Cash has again become king in a world that for years has run on credit. And companies Shoppers, who had already been holding back, nearly capitulated entirely when the value with cash on their balance sheets are suddenly the new prime players, even if sales, at least of their 401(k) portfolios and other investments plummeted. In October, comparable-store for now, are stuck in a rut. sales fell at 27 of the 38 retailers tracked by WWD. Even somewhat recession-resistant luxury So, conserving cash and minimizing debt have become critical. Even discount stalwart retailers were hit, and hard. Neiman Marcus Inc.’s comps fell 27.6 percent as Saks Inc. Target Corp. slashed planned expenditures by $1 billion and pulled back on its store expansion. was down 16.6 percent and Nordstrom Inc. dropped 15.7 percent. The pain continued in Value giant Wal-Mart Stores Inc., one of the few stores to regularly increase same-store sales November with 29 chains reporting comp declines. in the second half, also has cut back. Expansion plans are being trimmed and some real estate “Now you are dealing, from an emotional perspective, with a customer who is in a state portfolios scaled back as “underperforming” stores have simply become unacceptable. of fear, somebody who doesn’t know how they’re going to pay their mortgage, somebody who Late last month, shares of Jones Apparel Group Inc. and Liz Claiborne Inc. swooned as doesn’t know if they’re going to keep their job,” said Marc Gobé, president of Emotional their shrinking market capitalizations compelled institutional players to sell and investors Branding, a think tank and consultancy. fretted over bank credit facilities that expire next year. Women’s retail apparel prices in October fell a seasonally adjusted 2.5 percent versus Credit experts expect more retailers to drop. September, as men’s apparel dipped 0.1 percent and overall consumer prices slid 1 percent. “It could be a slow death for some companies,” said Karen Ghaffari, debt analyst at Fitch Apparel prices are lower than they were in 1990 and are likely to fall further with demand soft and Ratings. “On the other side of holiday, we’ll start to see who the stronger players are and who are the factories around the world hungry for production. weaker players. At that point, we’ll probably see more about store closings. Once we get on the other “The big concern for retailers is…when defl ation gets its start, and especially when it’s this side of this economic downturn, I think we’ll probably see more consolidation in this industry.” strong, it is a severe disincentive for consumers to come in and buy,” said Charles McMillion, ▲

Jan. 11: Reports of the

▲ Jan. 17: The Writers Guild “It” bag’s demise might of America strike and the have been exaggerated. attendant cancellation of Burberry’s $22,000 the Golden Globes affects alligator skin Warrior bag Los Angeles retailers as the warrants its own trunk lack of disposable income shows and commands a for showbiz and regular hefty waiting list. folks alike dwindles.

Jan. 14: Victoria’s Secret will hold a coveted ad spot for the upcoming Super Bowl. Model Adriana Lima is set to be

▲ Jan. 18: featured in an ad for the Boucheron lingerie brand. “She’s got marks its 150th those spectacular eyes,” anniversary says Limited Brands’ Ed with a collection Jan. 7: John Galliano’s witty New Year’s Razek, explaining her of fine jewelry card shows Christian Dior himself applying appeal. Yes, that’s it. known as rollers to Galliano’s famous locks. Enchanting Jan. 22: Valentino says goodbye, Boucheron. presenting his last couture collection in front of 900 guests. fashion moments WWD, MONDAY, DECEMBER 15, 2008 3

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president and chief economist at MBG Information Services. “For a For stores, discounts and givebacks from suppliers could lot of retailers, this is a life-and-death season. A lot of retailers are rescue the fourth quarter. “It’s going to be the difference between LUXURY’S NEW REALITY pulling out all the stops to make sure customers come through their those who have better profi ts over the holiday season and those door and not the guy down the mall.” who are a complete disaster,” said David Bassuk, managing WHEN THE YEAR STARTED, LUXURY LOOKED Nordstrom president Blake Nordstrom, for instance, reported director in the retail practice at AlixPartners LLP. invincible. in November, “We have lowered [the] average regular price by an That dynamic, though, will sorely test efforts among stores Billionaires from emerging markets fl aunted average of 22 percent on over 800 styles.” and vendors to work more collaboratively, all the way down to the their wealth, million-dollar diamond necklaces “We are promoting out of character,” said Burt Tansky, factory and raw material levels, as each link in the global supply fl ew out the door and stratospheric sums were president and ceo of Neiman Marcus Inc., after the fi rm reported chain is pressured, a domino effect that began when consumers being spent on contemporary art. an 83.6 percent drop in third-quarter profi ts. “We don’t like it.” slowed their spending, creating a mass of excess goods. Those three elements came together Many are working to conserve cash by cutting frills and “I started in retailing at the end of the Great Depression, in 1938, strikingly in January when, to celebrate its appealing to suppliers, already fi ghting razor-thin margins, to halt and retailers were falling by the wayside one after another,” said Ira 150th anniversary, Boucheron hosted a gala or divert shipments or cut wholesale prices. Neimark, former Bergdorf Goodman chairman. “The small ones dropped dinner and juxtaposed pieces from its owner “Most stores and vendors are trying to be collaborative partners out, but the ones who had the fi nancial backing were able to continue.” François Pinault’s private art collection — with what they hope will be something that will lead to a win-win for That process could be repeating itself, and Neimark suggested a think Damien Hirst and Jeff Koons — with both of them, or, in this case, less of a loss for both of them,” said survival-minded approach for stores: “When a heck of a storm is coming ultraexpensive baubles. Arnold Aronson, managing director of retail strategies at Kurt Salmon up, just lower your sails and ride it out rather than try to fi ght it.” The luxury party raged again in February, Associates. “They each want to live for the next positive business Fashion, for the most part, seems to be doing just that. The when Gucci inaugurated a megafl agship in New cycle. It wouldn’t be in anybody’s interest for key guys to go out.” problem is, no one knows when the storm clouds will blow over. York’s Trump Tower. And in April, LVMH Moët Hennessy Louis Vuitton got in on what seemed the everlasting boom of Swiss luxury watches by CREDIT CRUNCH Stanley Offi cina, president of factoring fi rm Ultimate purchasing fast-growing brand Hublot. Financial Solutions, said, “We seem now to be in a just-in-time Even as signs of economic turmoil grew, THE SUBPRIME DEBACLE OF 2007 TURNED INTO THE PANIC credit cycle, constantly adjusting to the swings from retailer LVMH and PPR, the French fi rm that owns Gucci of 2008, leaving many merger candidates alone at the altar, and to vendor. As they report numbers to Wall Street, one can see Group, continued to report brisk double-digit bankruptcy attorneys standing by with Chapter 11 petitions in hand. dramatic differences over a few weeks from what analysts sales growth in the fi rst quarter of the year. The liquidity crunch has extended far longer than many expect…[from] updated guidance to actual reported results.” In September, LVMH signaled its continued fi nancial prognosticators can remember. And few can say how Allan Ellinger, senior managing partner at Marketing confi dence in uberluxury when it signed a deal much longer it will last. Management Group, said the slowdown in mergers can be to acquire Royal van Lent, a Dutch fi rm that Certain deals, like the sales of Ellen Tracy to Windsong traced to two primary factors. makes yachts costing more than $30 million. Brands and home goods maker Waverly to Iconix Inc., took far “As multiples have been substantially reduced, those Earlier in the year, at the watch fairs in longer than expected, either because earlier potential merger companies that have been consistently profi table and may have Basel and Geneva, Switzerland, the mood was partners walked away or tougher fi nancing requirements considered selling will be sitting on the sidelines, as they have buoyant, with most manufacturers saying that necessitated weeks of negotiation. no pressure to sell. Additionally, companies that would have the top end was driving business. Among apparel and accessories been premium payers are to a great Watches blinged out with diamonds and retailers that fi led were Mervyns, Steve Steve & Barry’s extent also sitting on the sidelines complications garnered the most attention. & Barry’s, Goody’s Family Clothing, is liquidating. due to the uncertainty of the market Fashion companies even got in on the Boscov’s Department Stores, Harold’s and limited credit availability to fund ultraexpensive watch segment. Versace launched Stores, Friedman’s Jewelers, Whitehall acquisitions,” he said. a made-to-order watch dripping with diamonds Jewelers, and B. Moss Clothing. Other Ellinger foresees some M&A activity that costs 140,000 euros, or $204,600 at retailers fi ling included Fortunoff, from well-capitalized strategic buyers current exchange. Roberto Cavalli introduced a Linens-N-Things, Circuit City, Sharper looking to acquire fi rms unable to more expensive line called Diamond Time and Image, Red Envelope and National sustain their businesses at the right Dior created a diamond-encrusted tourbillon Wholesale Liquidators. Mervyns, Steve price, as well a shift in focus from watch that costs $475,000. & Barry’s and Harold’s are liquidating. private equity players. “Financial buyers But with the end of the summer, as Goody’s has restructured and exited will be a lot more selective and much stock markets reeled and Lehman Brothers Chapter 11, while Fortunoff, Sharper more risk-averse to deals in our industry went broke, the mood started to turn bleak. Image and Boscov’s found buyers as their exit strategy. The because of their lack of expertise in fashion, the uncertainty Compagnie Financière Richemont, which had fates of Circuit City and National Wholesale Liquidators were of the market and the lack of credit to fund their deals. We been enjoying rapid expansion, said sales of unclear at press time. are seeing a signifi cant decline in private equity activity at the its top watch brands, including Cartier and Van Whether vendor or supplier, much of their fate centers moment,” he said. Cleef & Arpels, started to show weakness in largely on consumer spending. According to Stevan Buxbaum, executive vice president of October, particularly in Europe and America. “The biggest issue is the consumers’ lack of confi dence, Buxbaum Group, “There is still so much mass uncertainty that LVMH said it was seeing softness in its least resulting in an inability to go out and buy, because they think they there is no idea how to plan for anything.” expensive Tag Heuer watches — despite continued can no longer afford to make discretionary purchases like apparel,” How it all plays out for the fashion industry will largely strength at its marquee Louis Vuitton brand. said Andrew Jassin, partner in the Jassin O’Rourke Group. depend on the consumer, he added: “We don’t see much lending, Fashion houses in Europe complained that Jassin noted that for businesses, the credit crunch has even though lenders say they are lending.…Everything is so tied many American retailers had reduced their meant an “inability to fi nance orders to build inventories.” to holiday sales, and there shouldn’t be a tremendous amount of orders by as much as 40 percent. What makes “Banks have cut off marginal retailers as they’ve become marked-down merchandise after Christmas, since inventory was the picture darker is that some people worry the more reluctant to lend out money,” he said. tight coming into the selling season.” — Vicki M. Young worst is still to come. — Robert Murphy

▲ Feb. 7: A bribery scandal involving the use of the Feb. 28: Norma Kamali signs on to design a line for Wal-Mart. 69th Regiment Armory (the site of Marc Jacobs’ shows) comes to light. Marc Jacobs International would ultimately

pay $1 million to New York ▲ March 3: Despite a case of State for its conduct related to the mumps, Amy Winehouse payments made to the former draws a crowd including superintendent of the Armory. the Olsen Twins and Sofia Coppola to the Fendi store- opening party in Paris. The singer seems somewhat confused about the event: “Thanks for asking me to play,” she says. “Whoever

▲ Feb. 27: Viktor asked me to play.” Horsting and Rolf Snoeren just say ▲ March 3: Karl Lagerfeld pulls out “No” to fashion the stops with a Chanel carousel as week madness, the centerpiece of his fall show, while March 6: Avril with coats, T-shirts Alexander McQueen shows looks Lavigne signs on to Feb. 12: YSL muse and makeup inspired by a fairy tale he concocted do a line for Kohl’s. Loulou de la Falaise proclaiming the about the 600-year-old elm in his garden. The line, launching is set to introduce word in giant for back-to-school, costume jewelry and letters. will be called handbags on the Home Abbey Dawn, which Shopping Network. is the singer’s ▲ nickname. 4 WWD, MONDAY, DECEMBER 15, 2008

SECTION II WWD.COM YEAR IN FASHION Yes, He Did Creating jobs and restoring conﬁ dence will be on top of the new president’s agenda. By Kristi Ellis

BARACK OBAMA, A JUNIOR SENATOR FROM ILLINOIS, BEAT said David Redlawsk, a political science professor at the University the odds in this year’s historic presidential election, securing President- of Iowa. “Labor has argued for a long time that the current system a landslide victory as the country battled a two-front war and a elect Obama. is rigged against them, and to some degree it is. We will probably recession that will test his leadership in the early days of see some shift there [in favor of the unions], although I don’t think his presidency. it will be as dramatic as people think.” From the campaign trail to the Democratic convention in Denver He also expects to see an increase in worker protection to the ﬁ nal election stretch, Obama made it clear that helping regulations within the Labor Department. the American worker and the middle class would be at the core While Obama will place a priority on domestic and foreign of his policies. Relying on his lyrical oratorical prowess and a policy in light of the economy and wars in Iraq and Afghanistan, his simple but effective mantra of change, Obama won over millions full trade agenda may take a backseat in the early days, but it is of voters, especially in hard-hit industrial states, from unemployed expected to come to the fore in the ﬁ rst few months. autoworkers in Ohio and steelworkers in Michigan to retirees in As for his direction2 on trade, many question whether it will be Florida and former textile workers in North Carolina. more protectionist, free trade-oriented or something in between.

The strategy paid off. Obama swept to victory on hopes of GETTY TODD PLITT/CONTOUR IMAGES BY PHOTO BY “There will be some desire to move toward a protectionist restoring confi dence in the country with 53 percent of the popular position among a lot of constituents and a lot of people in vote and 365 electoral votes, a lopsided win over his Republican Congress,” said Redlawsk. “At the same time, there is a lot of push rival, Arizona Sen. John McCain, who tallied 46 percent of the back, even from some Democrats who are free trade-oriented. There popular vote and 173 electoral votes. is not a unifi ed position in the party and that will constrain what a Obama’s presidency is expected to bring signifi cant changes president can do.” to business and labor regulations, taxes, international trade, cargo On the campaign trail, Obama vowed to put a hold on new trade container and port security, union bargaining, jobs programs, health deals until existing trade deals can be reviewed. He also pledged to care and energy. The new administration’s policies will have a ramp up enforcement of global trade rules and laws, which means multifaceted impact on the fashion industry, which helped propel more scrutiny of countries dumping imported products below cost in him to victory and his place in the Oval Offi ce. the U.S. market or subsidizing their imports. The new administration With $94.2 billion in global imports, retailers, apparel and also aims to strengthen labor and environmental provisions in trade textile importers and makers have signifi cant exposure to a deals — and enforce them. president’s policies on international trade and maritime security. Obama will have to confront several outstanding issues with China, the largest apparel Obama’s fi rst order of business will be an economic stimulus and recovery package. He supplier to the U.S. The expiration of quotas at the end of the year on 34 categories of has said recently his goal is to secure 2.5 million jobs over the next two years. apparel and textile imports from China could top the list of Obama’s challenges. “We need a recovery plan for both Wall Street and Main Street — a plan that stabilizes Textiles played a key role in Obama’s win in the swing state of North Carolina, where he our fi nancial system and gets credit fl owing again, while at the same time addressing our pledged to support fi ve key textile-industry policy positions, including a monitoring program growing foreclosure crisis, helping our struggling auto industry and creating and saving 2.5 for Chinese apparel and textile imports. million jobs — jobs rebuilding our crumbling roads and bridges, modernizing our schools “I am especially aware of the trade challenges faced by those working in our textile and creating the clean energy infrastructure of the 21st century,” Obama said at a news industries,” Obama wrote in a letter responding to a questionnaire submitted by the conference unveiling his economic team. “Because at this moment, we must both restore National Council of Textile Organizations shortly before the election. confi dence in our markets and restore the confi dence in the middle-class families who fi nd Acknowledging the surge in imports from China that took place when global quotas were themselves working harder, earning less and falling further and further behind.” lifted at the end of 2004, Obama noted: “As president, I would use monitoring to help Obama appointed half of his cabinet by the fi rst week in December, including his ensure that imports from China do not violate applicable laws and treaties.” economic and national security teams. He tapped New York Federal Reserve President Obama will also likely be more aggressive in prodding China to let the value of its currency Timothy Geithner to be his Treasury Secretary, former rival and fi rst lady Sen. Hillary Clinton appreciate. Critics argue it’s undervalued by as much as 40 percent, which lowers prices as Secretary of State and New Mexico Gov. Bill Richardson as Commerce Secretary. on Chinese imports and puts U.S.-made products at a competitive disadvantage. Obama “The concern of business has to be that the economic stimulus package, the Employee cosponsored a Senate bill that would make currency manipulation actionable under U.S. trade Free Choice Act [a bill that would make it easier for workers to organize] and the assistance remedy laws, and he accused China of manipulating its currency in the letter to NCTO. to auto makers implies a big-government philosophy,” said Marick Masters, a business Importers and retailers fear an Obama administration might seek to impose punitive professor at the University of Pittsburgh. “The concern is going to be that along with a big- tariffs on Chinese imports, but domestic manufacturers hope his administration will follow government philosophy comes increased taxes and increased regulation.” through on pledges to take a harder stance against China. While there might be a downside for businesses, workers will likely have something to cheer. “China must change its policies…so that it relies less on exports and more on domestic “We will see a much more pro-labor and -worker environment, both in Congress, with demand for growth,” said Obama. “That is why I have said that I will use all diplomatic the Democrats enhancing their control, in the White House and in the Labor Department,” means at my disposal to induce China to make these changes.”

June 4: Stella McCartney adds whimsy April 4: Rei Kawakubo of Comme des Garçons May 27: Lutz & to the never-ending resort season with says she’ll do an H&M line for holiday. Patmos is famous a picnic in the West Village. Models

for bringing in mug with lollipops while showing off guest designers, her nautical designs. ▲ from Julianne

▲ April 8: Alexander Moore to Carine McQueen’s new Los Angeles Roitfeld. But store is dominated by a an Amtrak stainless steel sculpture conductor? Co- of an anatomically correct designer Tina male angel. “Los Angeles Lutz encountered is the City of Angels,” the Chris Waugh on ▲ June 3: The CFDA Awards honor designer explains. “I wanted her commute Francisco Costa as women’s wear something to reflect that.” and he suggested designer of the year and Tory Burch an idea for a for accessories. Several attendees, hoodie that will including Diane von Furstenberg, be the sweater Carolina Herrera and Ashley Olsen, label’s latest pay tribute to the late Yves Saint collaboration. Laurent, who died on June 1, by wearing le smoking.

May 23: “Sex and the City” finally comes ▲ June 4: Tom Ford films a video parody of the HBO to the big screen, and that big screen hit “In Treatment,” playing a therapist’s patient, for is chock-full of clothing from major the CFDA Awards. He had one quibble during filming, designers: Chanel, Prada, Oscar de la however: “Can’t I have a Diet Coke? Who drinks a Renta and Vivienne Westwood among martini in therapy?” Several months later, he reveals them. Patricia Field partners with HSN he will direct “A Single Man,” adapted from the on a style brand that includes Carrie’s Christopher Isherwood novel, with Colin Firth and ▲ iconic flower dress from the movie. Julianne Moore. fashion moments 46 East 57th Street - New York, NY 10022 - Tel 212-308-2900 9517 Wilshire Boulevard at 2 Rodeo Drive - Beverly Hills, CA 90210 - Tel. 310-276-7022 441 East Hopkins Avenue - Aspen, CO 81611 - Tel. 970-544-8303

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SECTION II WWD.COM YEAR IN FASHION Au Revoir, Yves The death of a great couturier marks the end of an era. By Ellen Groves

ON JUNE 1, THE FASHION WORLD Picasso and Matisse, collected said goodbye to one of its greatest Yves over fi ve decades by Bergé and designers, Yves Saint Laurent, who Saint the designer, will be auctioned by died from brain cancer at 71. 3Laurent Christie’s in Paris — in association His memorial mass, held at the in 1968. with Pierre Bergé and Associates. Eglise Saint-Roch on June 5, was the Proceeds, estimated at between most important French fashion funeral 200 million euros, or nearly $250 since Christian Dior’s in 1957. million at current exchange, and 400 Standing behind barriers for hours, million euros, or $500 million, will hundreds of fans burst into applause, go to the Fondation Pierre Bergé-Yves some into tears, when the late Saint Laurent and to a new foundation designer’s coffi n arrived at the 17th- Bergé created to fund research to century church on the Right Bank. fi ght AIDS. Meanwhile, a retrospective French President Nicolas Sarkozy, featuring 40 years of couture creations, accompanied by First Lady Carla such as a cream shantung dress made Bruni Sarkozy, adorned the coffi n for Princess Grace of Monaco in 1964, with the French fl ag and gave Saint continues at the de Young Museum in Laurent military honors to mark San Francisco until March following its his stature as a grand offi cer in the four-month run at Montreal’s Museum French Legion of Honor. of Fine Arts. Pierre Bergé, Saint Laurent’s In September, the French seaside companion and business partner for resort of Deauville, where Saint Laurent 50 years, was joined by longtime and Bergé owned the 19th-century friends Catherine Deneuve, Betty Château Gabriel, unveiled the Place Catroux and Loulou de la Falaise. Yves Saint Laurent, a tribute to the Designers in attendance included designer who made Deauville a summer Valentino, Marc Jacobs, Christian home for some 30 years. Lacroix, John Galliano, Alber Elbaz, From his invention of ready-to-wear Sonia Rykiel, Jean Paul Gaultier, with Rive Gauche to designing pants Stefano Pilati, Kenzo Takada, Hubert for women, sending black models down de Givenchy, Vivienne Westwood and the runway and himself posing naked in Riccardo Tisci. an advertisement for his men’s scent in An intimate circle of around 20 1971 — Saint Laurent broke codes in attended Saint Laurent’s cremation at the Père-Lachaise cemetery both fashion and in society. the following day. His ashes were laid in a mausoleum in his beloved “Chanel gave women freedom. Yves Saint Laurent gave them Majorelle Gardens in Marrakech, which he restored with Bergé. power,” said Bergé. It was an emotional send-off for a designer who shaped and His dominance over fashion was such that, if he made a minor reshaped fashion for half a century, winning accolades from alteration to a hemline, the repercussions and replications rippled “genius” and “master” to “the prince” or “the king of fashion.” The around the globe. “I’m happy to be copied, otherwise I wouldn’t be latter anointment caused him to joke: “So they have crowned me doing my job well,” he declared in 1998. king. Look what happened to all the other kings in France.” And his infl uence continues in the works of many. “I and a Yet his reign goes on as France and the world continue to couple of friends always say, ‘How would Saint Laurent do it?’” pay respects. said Marc Jacobs. “I can say with confi dence that he will continue In 2010, a giant fashion retrospective, likely to include some to inspire me,” said Stefano Pilati, the designer who continues his Throngs outside 300 pieces, is slated to be held at the Petit Palais in Paris. It’s name. Among those whom he inspired to join the industry are Yohji Saint-Roch being organized by the Fondation Pierre Bergé-Yves Saint Laurent, Yamamoto, Giles Deacon and Vera Wang. church; Carla which possesses some 5,000 haute couture garments plus around “There’s a feeling of frustration in fashion with things that only Bruni Sarkozy 15,000 accessories, sketches and assorted objects spanning Saint last a season and die,” Saint Laurent said in 1978. “I try, as I and Pierre Bergé. Laurent’s 40-year career. advance, to make something that will last, that will be passed from In February, some 700 works of art, including pieces by one generation to another.’’

▲ June 25: Thierry Mugler relaunches June 16: Mary-Kate and

women’s wear for spring, under designer ▲ July 22: Betsey Ashley Olsen have a Rosemary Rodriguez. Mugler purists will Johnson celebrates new venture: a jewelry be happy to know that his signature sharp the Big 3-0 — in collaboration with shoulders have been reinstated. business. Robert Lee Morris.

June 23: Blogging may not be lucrative, but when you’re a popular online fashion scribe, the perks

can’t be beat. Marc Jacobs named ▲ July 2: Martin one of his fall bags the BB, after Margiela Philippines-based blogger Bryanboy, continues his

who regularly enthuses over the chic recycling designer’s handbags. ▲ theme with a dress made out of vintage LP’s, a jacket of shredded newsprint (which happens to contain press ▲ July 25: Anniversaries spur most designers clippings on to throw parties or put on celebratory the designer runway shows. Comme des Garçons went in himself) and a a different direction for its 25th, creating vest made from a maze of iconic images from its ads and 30 balloons. invitations in a Beijing gallery. fashion moments Photo C. Chaize

The World’s Premier Fabric Show™/ Parc d’Expositions Paris-Nord Villepinte - France / From Tuesday 10 to Friday 13 February 2009 - Première Vision c/o France Ligne Inc. - Tel. : (1) 203 698 7460 [email protected] / www.premierevision.fr 8 WWD, MONDAY, DECEMBER 15, 2008

SECTION II YEAR IN FASHION

A rendering of the Elie Saab- The Global Challenge designed luxury hotel in Dubai. The Mideast has been the hottest region for luxury this year, but even it, like most other areas, is facing a slowdown. By Marc Karimzadeh

AT RALPH LAUREN’S SPRING COLLECTION, UNVEILED DURING to conceive and design 80 residential homes on Dubai’s Isla fashion week in September, models made their exits through an Moda. When fi nished, the island, dedicated to fashion, will be Arabian archway adorned with a single fi ligreed hanging lamp. part of the city’s “The World” project, a man-made cluster of It set the tone for a beautiful collection full of Middle Eastern islands in the form of the world’s continents. touches, from the golden desert textures to harem pants, turbans Christian Lacroix, meanwhile, said this year that he will add An aerial shot of the downtown and exotic jewelry. his design touches to a residential tower in Dubai in a joint Burj Dubai development. Lauren of Arabia — as WWD dubbed the designer — couldn’t venture with Kuwaiti-based developer Abyaar. have hit the fashion Zeitgeist at the time any better. It’s fair to Roberto Cavalli, too, jumped on the bandwagon, opening say that this year, the Middle East eclipsed China as the much- his fi rst nightclub, Cavalli Club, at the Fairmont Hotel in Dubai buzzed-about region for fashion companies to explore. last month. The venture is in partnership with Pragma Group, With every rise in the price of a barrel of oil, the oil-rich an investment, outsourcing and business incubator based in region got a little richer. Places such as Kuwait, Qatar and the United Arab Emirates. Abu Dhabi became even more fl ush with cash, and that part Qatar, meanwhile, also has been getting its fair bit of of the world became one of the fastest-growing regions for attention these days. The I.M. Pei-designed Museum of luxury and fashion — and deal-making. Dubai amplifi ed its Islamic Art opened in Doha last month, and a man-made status as the desert region’s epicenter, with tourists from island development called The Pearl will, when completed, nearby countries, from Iran to Saudi Arabia, descending on offer 280,000 square feet of retail space for luxury brands. the Persian Gulf city to play. They came with deep pockets In recent months, there also has been buzz about an and a seemingly endless appetite for luxury. It came as little investment vehicle linked to Qatar’s ruling family looking to surprise then that major luxury brands were rushing to the invest in Lanvin. The world’s largest mall in Dubai. region to benefi t from the momentum. Just how much the economic depression will impact That said, even the Middle East hasn’t been immune to the region remains to be seen. Other emerging markets, for the global fi nancial crisis, especially with slumping oil prices. one, are already feeling the pinch. After privatization has Dubai in particular has found itself in a precarious situation. created enormous wealth for some in the last decade, Russia Unlike some of its neighboring Gulf countries, Dubai’s wealth has recently been experiencing a slowdown. China, where does not come from oil, and it is largely reliant on tourism, manufacturers depend on exports to fuel much of the country’s expatriate communities and construction. The Arab emirate income, has also taken a hit. has been going through a spectacular building spree in recent “For a Madison Avenue type of retailer, it’s not pretty,” an years that is widely expected to slow down — especially as the industry source said. “The top luxury distributors are either number of tourists and expats arriving in Dubai is expected to freezing or pulling back. The demand for China imports is decline next year. down and factories are closing.” “It’s all built of a very precarious base, because it’s all being As for India — another much-anticipated emerging market fi nanced by the other countries,” said one industry source on — it remains to be seen how the terrorist attacks in Mumbai condition of anonymity. “There is a huge amount of building late last month will affect the local economy. It is sure to have already accomplished, and a huge amount of building under way. an impact on tourism in the region. A rendering You can’t help but wonder who is going to fi ll up those buildings, In the Middle East, however, nothing seems to be putting a of The Pearl’s and how are they going to pay for them?” damper on the party spirit, at least for now. In late November, Porto Arabia Despite the caution, many fashion houses have been forging billionaire hotel mogul Sol Kerzner spent $20 million on the harbor in ahead with their plans for the region. Lauren already has two launch of his $1.2 billion Atlantis The Palm resort in Dubai. Qatar. stores in Dubai, Kuwait City and Saudi Arabia, and added The three-day party brought out the likes of Kylie Minogue, who another in not-too-far Istanbul in October. performed, as well as Charlize Theron, Mary-Kate Olsen, Janet In September, Bloomingdale’s said it was opening two Jackson, Quincy Jones, Lindsay Lohan and Samantha Ronson, stores — a three-level, 146,000-square-foot men’s and women’s the Duchess of York, Robert De Niro and Mischa Barton. apparel and accessories unit and a one-level, 54,000-square-foot “You are dealing with countries [in the Middle East] home store — at the Dubai Mall, which is attached to the Burj that have signifi cant natural resources,” said Robert Burke, Dubai, the world’s tallest building. The Burj Dubai will boast an founder, president and chief executive offi cer of Robert Burke Armani Hotel when construction is completed next year, although Associates. “Even when [the price of] oil is dropped in half, it is said to be in a holding pattern at the moment. there is still wealth there, and money that they are interested Karl Lagerfeld in July teamed up with Dubai Infi nity Holdings in using to their advantage.”

July 30: Olé! Giorgio Armani designs Aug. 14: Thakoon will be the next Go International designer for a goyesco, or Target. Later in the year, Alexander McQueen also signs on with the bullfighting costume, mass retailer as part of its new Designer Collaborations initiative. for noted matador Cayetano Rivera Ordoñez. This results

in a backlash from ▲ Aug. 7: Christian animal rights group Francis Roth’s 100% Animalisti, new line, Francis which covers Milan’s by Christian

Emporio Armani store Francis Roth, with protest signs. ▲ courts controversy — and the ire Aug. 6: Alexander of copyright Wang has built upon lawyers — with the model-off-duty a polo dress aesthetic to critical featuring a very acclaim. Now he is familiar crocodile building his business devouring a very ▲ Aug. 15: E-commerce? by launching both familiar polo Ralph Lauren ventures shoes and a diffusion player. one step further, into line for spring 2009. m-commerce. Cell phone users can now buy Polo items using just their phones via the company’s special mobile store.

▲ Aug. 5: Sketches of Madonna’s costumes for her “Sticky and Sweet” tour are released. She’ll sport a gypsy ensemble from Givenchy and a downtown

fashion moments Eighties look from Jeremy Scott, among others. WWD, MONDAY, DECEMBER 15, 2008 9

WWD.COM

Political ﬁ gures took the fashion spotlight. Election Chic By Bridget Foley

Michelle 5CELEBRITY OBSESSION TOOK A MAJOR TURN and Barack in 2008. The year’s favorite fascinations were Obama at the neither sinewy screen goddesses nor size-two Democratic ingenues. Rather they hailed from the endless, National and endlessly captivating, presidential campaign: Convention. the hyper-telegenic First Family-to-be, the Republican vice-presidential candidate and her comedic doppelgänger. Brandishing the promise of change and the battle cry of “Yes, we can,” the charismatic Barack Obama had the fashion industry from hello. Early on, the very promise of a President Obama turned designers and industry execs as starry-eyed as teenagers in love, a devotion that continues to swell in anticipation of the Inauguration. Of course, in this age of 24-7 visual media, style is integral to substance. So while much of the excitement focuses on the President-elect’s policies, there is no small level of interest regarding his style with a capital S, inclusive of the erudition, the calm, the professorial confi dence, the Internet savvy and, of course, the visual imagery. With his Ultra Brite smile and male-model way with made-in-America Hart Schaffner Marx, Michelle Obama’s always- proper, not-always-understated chic and the two most beguiling minors to take up residence in the White House since 1961 (not to mention the puppy chatter), no central-casting machine could have done a better job. And it’s not only the fashion world that’s riveted on the Obama style, but the entire country and, indeed, the world, as pundits and civilians alike dissect every nuance, from the marital fi st bump to Michelle’s visually explosive, election-night Narciso Rodriguez sheath. We know about her favorite Chicago designer, Maria Pinto; a favorite store, Ikram (She shops! She pays!); her style-at-a-price proclivities Sarah Palin at (J. Crew, Donna Ricco); the way she transforms a a rally. strand of pearls from classic to modern. At WWD, JOE READLE/GETTY JEFF FUSCO/GETTY IMAGES IMAGES; OBAMAS BY PHOTO BY PALIN we know the insatiable obsession fi rsthand. This paper has covered fi rst ladies’ fashions since the Wilson administration, including publishing when Tina Fey returned to “Saturday Night Live” with an impersonation for the ages. But Palin’s speculative sketches prior to all recent inaugurations. This month’s feature on Michelle early folk-hero status didn’t last long. As she struggled through unscripted interviews, she took a Obama drew an unprecedented reaction, leading us to expect similar mayhem in response to hit in the polls, and many one-time supporters started to view her as a liability to John McCain’s today’s Barack Obama feature. presidential bid. Contributing to her undoing: the news that the Republican National Committee Oh, but this is a land of glorious diversity. Enter Sarah Palin, who burst into the national had paid upwards of $150,000 at stores including Neiman Marcus and Saks Fifth Avenue to psyche guns ablazing (fi guratively, of course — a moose corpse or two notwithstanding) on the ensure that this Alaskan mother of fi ve was properly turned out for the campaign circuit. The strength of her star-making speech at the Republican National Convention, complete with an news proved devastating, for the moment at least. F. Scott Fitzgerald’s take aside, Americans Everywoman glam updo, rimless glasses and a hockey mom-pitbull analogy. Almost immediately love a second act. A full two months before President-elect Obama took offi ce, Republican she became a sensation-cum-curiosity, a dual-edged distinction solidifi ed the next weekend strategists were already fl oating Palin as a possibility for a 2012 presidential run.

Aug. 26: Post-Beijing, Olympians are getting fashion endorsement ▲ Sept. 3: Sept. 6: deals faster than Michael Phelps can swim the 200-meter Watchmaker ▲ butterfly. Even Phelps’ mother, Debbie, is benefiting: after she Jaeger-Le DKNY marks wore Chico’s to cheer on her son (and scored plenty of screen Coulture offers 20 years. time), the retailer signs her to a yearlong endorsement deal. its first piece Donna Karan of fine jewelry: comments, a one-off cuff, “Next to priced at a cool Calvin [Klein, $4.3 million. which is celebrating its 40th anniversary] Sept. 3: It’s hard I feel like a to believe that child.” a label so well-

▲ Sept. 2: known for its Catherine provocation is Malandrino middle-aged. celebrates a Sept. 6: Macy’s celebrates Calvin Klein ▲ Sept. 2: Oscar de la Renta decade in fashion, its 150th anniversary. is planning welcomes in the Internet age, looking back on a big bash at initiating e-commerce on his Web milestones like the High Line site and beginning a stint as a the flag dress, to celebrate guest blogger for Brides.com. which she reveals Sept. 8: Protest group NYC Animal Rights its 40th was inspired by hits the DKNY show, with demonstrators anniversary. the film “Easy jumping in front of the photographers. Rider.” The only disconnect? DKNY isn’t known for its use of fur, leaving a reviewer to conclude that the protesters were “barking up the wrong tree.” 10 WWD, MONDAY, DECEMBER 15, 2008

SECTION II YEAR IN FASHION

Even though mass merchants are attracting cash-strapped consumers, the sector still faces challenges. Moves at Mass By Sharon Edelson

THIS YEAR WILL BE REMEMBERED AS ONE OF TRANSITION FOR MASS MARKET retailers. Expansion plans were curtailed and capital expenditures slashed as signs of the Wal-Mart is getting a economy’s deterioration came into focus. new ceo. There was a changing of the guard in the executive suites of both Target and Wal-Mart, where longtime leaders announced their retirement. Bob Ulrich, chairman and chief executive offi cer of Target, retired in May, leaving former president Gregg Steinhafel in charge. Wal-Mart ceo H. Lee Scott said in November that he would step down and hand the reins to Michael Duke, vice chairman of the international division, on Feb. 1. Another long time Wal-Mart executive, Eduardo Castro-Wright, was promoted vice chairman of Wal-Mart Stores, adding global procurement to his responsibilities. One of Scott’s key initiatives Alexander has been making the giant Wal- McQueen’s Mart environmentally friendly. The McQ line Bentonville, Ark.-based behemoth’s for Target. companywide sustainability goals include using 100 percent renewable energy, creating zero waste and selling 6 environmentally friendly products. Wal- Mart said it is moving toward these goals by using sustainable sourcing practices such as energy effi ciency, waste reduction, renewable energy and life cycle management. In early December, Wal-Mart created the Green Jobs Council with representatives from the retailer’s divisions and suppliers across a variety of industries. Wal- Mart also reviewed its operations in businesses. China, issuing new guidelines that hold The demise of Mervyns sent a suppliers responsible for quality and chill through the retail industry. The other issues. 59-year-old, $2.5 billion chain fi led Wal-Mart plans to aggressively for Chapter 11 bankruptcy protection pursue business in emerging markets in July and began holding going-out- around the world such as Mexico, of-business sales at its remaining China and Brazil with 53 percent of 149 locations and auctioning off its allocations shifting to those markets store leases. Target was said to be a over the next fi ve years. International benefi ciary of Mervyns’ collapse and accounted for 24 percent of Wal-Mart’s might attract some of its customers, as $374.5 billion in net sales last year. well as acquire leases. Duke’s appointment underscores the Bowing to the realities of the importance of foreign markets to Wal- weakest consumer market in a Mart. As the retailer begins to inch Mervyns is in liquidation. generation, Target cut its capital toward saturation in the U.S., it has looked to its international division for growth. expenditure plans next year by $1 In what has been a harrowing holiday season so far for most retailers, Wal-Mart managed to billion. The company has been stressing the “Pay Less” part of its “Expect More, Pay Less” tag post a stronger-than-expected 3.4 percent increase in November same-store sales, while most line in light of the economy, and said it’s making sure its prices match those of Wal-Mart in all retailers reported declines. After initial stumbles in apparel, such as the trendy Metro 7 line, local markets. Target continues to make inroads on the fashion front with the McQ Alexander Wal-Mart seems to be sticking to its knitting with fashion basics, and activewear and career McQueen for Target line and a Loomstate for Target collection of eco-friendly designs. wear by Norma Kamali. Target, however, was facing pressures from other sources. Unhappy with the company’s Struggling Sears Holdings Corp., parent of Sears and Kmart, added to its management stock performance, activist investor William Ackman proposed spinning off the land under team, tapping Nick Coe to be senior vice president of the company and president of Target stores into what would become the largest real estate investment trust in the country. Lands’ End. Scott Freidheim was named executive vice president of operating and support Target rejected his proposal.

Sept. 9: Anyone hoping for a little song-and-dance routine from Justin Sept. 22: “Mousy” isn’t usually a compliment in the Timberlake at the first New York show for his label, William Rast, is world of fashion, but Minnie Mouse, who turns 80 this disappointed when the pop star opts for a simple finale bow. “At least year, was enough of a draw that Chanel, Azzaro and he could have done one song,” one editor complains. others agreed to design outfits for her. They will be auctioned for charity at Christie’s in Paris.

Sept. 10: That’s Lauren Pierce to you. President Bush’s niece steers clear of partisanship by using Oct. 3: Sacha Baron her middle name in Cohen, who has crashed her label. The FEED fashion shows in bag designer presents Milan and Paris for her debut collection his upcoming “Bruno” of ready-to-wear in movie, arrives at Stella ▲ Sept. 9: Victoria sustainable hemp silk, McCartney wearing a Beckham’s new high-end bamboo and cotton. leather vest and a series line features dresses that ▲ Sept. 15: One of the side benefits of hammy expressions. are surprisingly covered of dating a Rolling Stone: the two up. “To me, ankles and songs Mick Jagger wrote for L’Wren collarbones are sexy,” Scott’s presentation won’t be played Beckham explains. Later anywhere else. The rocker intended in the year, she would them exclusively for the show. join husband David in the campaign for Giorgio ▲ Oct. 2: Louis Vuitton announces that the current face of Armani underwear. Sept. 18: Esprit celebrates its 40th anniversary. its “core values campaign,” Sofia Coppola, will design a

fashion moments line of handbags and shoes for the luxury brand. WWD, MONDAY, DECEMBER 15, 2008 11

WWD.COM

Poor sales at retail can’t be blamed solely on the Crisis in Fashion sagging economy. By Bridget Foley

THOUGH THE TANKING ECONOMY DOMINATED fashion. Little did anyone imagine how many consumers conversation, as the year wound down, it was clear that would heed their advice. fashion had ample other problems as well. The ﬁ nancial For retailers, 2008 has been an exercise in trying doldrums did, however, illuminate issues that had festered frantically to right a woefully errant ship. Until last year, for some time. it had been ages since women had so dismissed luxury First, senior industry executives were increasingly offerings. Their indifference came as a shock, even with willing to admit that the fashion system — that huge, the weak dollar partly to blame. But as the consumer intricate amalgamation of show dates, malaise continued, the notion arose multiple seasons, mass international travel, that, to some degree, the goods the obsession with the “pre’s,” steadfast themselves just weren’t resonating. insistence on early deliveries and an endless And there were more goods from stream of new, familiar-looking collections more houses — and a greater deal of into an already dangerously saturated stylistic overlap — than ever before. marketplace — was broken. The mass whining and even Then came the economic meltdown, anger were in full bloom by fall 2007, when the weak with no clear signs of the bottom dollar drastically upped the ante for Americans traveling anywhere in sight. Exacerbating the fashion to Europe for the spring 2008 collections. Still, those problem going forward, despite dazzlers shows dazzled creatively, leaving hope for a reasonable from Chanel, Dolce & Gabbana, Lanvin, Marc performance at retail, one that went largely unrealized. Jacobs (times two, including Louis Vuitton) One year later, fashion appeared to be in a and a few others, spring 2009 disappointed shambles, the current Christmas selling season creatively, even more so than fall. However the marred by unprecedented markdowns, in some industry ultimately deals with the dismal new cases reaching a once-unfathomable 90 percent off. reality, one thing is certain: The days of more-is- The deep discounts were plastered on merch that more inventories are over. As retailers continue to hailed from a runway season in which too few hits — streamline at all levels, the luxury powerhouses Alexander McQueen’s ode to his queen, Balenciaga’s will see orders cut and numerous smaller concerns futuristic, jewel-bedecked ladies and Prada’s lace among run the risk of being dropped completely (as Neiman them — broke up a distressing mediocrity. Then there was Marcus and Saks Fifth Avenue have already warned). Unprecedented the effort from Viktor Horsting and Rolf Snoeren for Viktor Thus, at some point, the industry must tackle the markdowns & Rolf, which at the time amused some and irritated overall saturation issue. characterize this others, but which in retrospect seems eerily prescient. Or there’s always the Darwinian concept of natural selling season.

You remember, that show in which they just said “No!” to selection. LARRY DOWNING/REUTERS/LANDOVPHOTO BY

27 FEBRUARY 2 MARCH 2009

COLLEONI GATE PAV. 3

COLLECTIONS AUTUMN WINTER 2009/2010 - WOMEN’S Prêt à porter

www.milanovendemoda.fieramilanoexpocts.it 12 WWD, MONDAY, DECEMBER 15, 2008

SECTION II YEAR IN FASHION You’re Either In or You’re Out Maria Grazia Chiuri and Pier Paulo Piccioli; Tommaso Aquilano and The creative winds blew designers and executives all around. By Miles Socha Roberto Rimondi; Isaac Mizrahi; Phoebe Philo; Patrizio di Marco; Hussein Chalayan. 8

FASHION’SHION’S REVOLVING DOOR KEPT SPINNING IN IN20 2008, WITH EXECUTIVESCUTIVES AND DESIGNERSDESIGNERS Facchinetti,FacchinF hi tti successor to ttthR the Roman couturier, ti the thd day after ft she showed her second ready-to- in fl ux at Europe’s biggest luxury groups. wear collection. The company cited “a misaligned vision with the company.” The moves underscored two industry trends: Conglomerates looked mainly within their own Valentino’s longtime accessories duo, Maria Grazia Chiuri and Pier Paulo Piccioli, will ranks for management talent and, on the creative front, companies mainly sought designers take up the rtw and couture reins, with a vow to prioritize evolution over revolution, a decision willing to devote their sole focus to brand building across all product categories, as opposed to applauded by the house founder and his longtime business partner, Giancarlo Giammetti. having their attention diverted by a signature line. Lars Nilsson logged an even shorter tenure at a storied Italian house. The Swedish designer After a long negotiation with former Chloé wiz Phoebe Philo, LVMH Moët Hennessy Louis was ousted from Gianfranco Ferré a week before he was to show his fi rst collection on the Vuitton in September named the British designer as Celine’s new creative director, with plans to runway last February. overhaul the French fi rm’s product lines and rejuvenate a large, but stalled, fashion franchise. He was succeeded by Tommaso Aquilano and Roberto Rimondi of 6267, who had been Basing her design team out of London, Philo is to present her fi rst designs for Celine next pivotal in the relaunch of the Malo brand, owned by IT Holding Group, which also controls spring, marking the comeback of a popular and acclaimed designer who had been out of the Ferré. The men showed their fi rst collection in late September to mixed reviews. spotlight since 2006. Peter Som parted ways as creative director of Bill Blass women’s wear at the end of his (Separately, Chloé parted ways with designer Paulo Melim Andersson, who had pursued an contract, amid frustrations the fi nancially troubled brand’s owner, NexCen Brands Inc., Bill edgier, quirkier path for the Richemont-owned brand. He was replaced by Hannah MacGibbon, who Blass, and its rtw component are for sale. had worked under Philo for fi ve years and helped set the brand’s winning hip-yet-girlish template.) The relaunch of the iconic Halston label also came with a swift designer exit. Italian-born Philo’s arrival at Celine not only shunted out designer Ivana Omazic, who had an uneven Marco Zanini, who had cut his teeth at Versace, designed two collections for the house before tenure, but also precipitated a wide-ranging management shuffl e at LVMH involving three departing. In November, he was named creative director at Rochas, a shuttered rtw brand other brands. Celine tapped Givenchy’s chief executive offi cer Marco Gobbetti as Philo’s being resurrected under license by Italian manufacturer Gibò Co. SpA, with his fi rst collection management counterpart, with John Galliano’s Fabrizio Malverdi fi lling Gobbetti’s shoes, and due to hit the runway in Paris next spring. Also in November, Cacharel said it ended its brief Christian Dior’s Pierre Denis becoming Galliano’s managing director. association with British design couple Mark Eley and Wakako Kishimoto. Meanwhile, Celine’s former ceo, Serge Brunschwig, became chief operating offi cer at Other creative comings-and-goings were less dramatic. Peter Dundas, a Norwegian designer Christian Dior, fi lling a slot left vacant when Claus-Dietrich Lahrs went to become chief who had a brief stint at Emanuel Ungaro, was named the new artistic director at Emilio Pucci, executive at Hugo Boss AG, succeeding Bruno Sälzer, who landed at the helm of another replacing Matthew Williamson, whose contract had come to an end, and he had a desire to German fashion house, Escada, succeeding Jean-Marc Loubier. focus on his signature collection. A game of musical chairs also played out at Gucci Group when Gucci brand chief Mark Lee Jonathan Saunders was named rtw director at Pollini, succeeding Rifat Ozbek at the end of announced in September he would step down at the end of 2008 after a four-year tenure that his four-year contract at the Italian house. saw brand revenues grow 46 percent, excepting a wobble in the fi rst quarter of 2008. Saunders and Dundas are to present their fi rst collections in February in Milan. Like LVMH, Gucci Group looked within for its succession plan: Patrizio di Marco, who Hennes & Mauritz also turned a page, with Ann-Sofi e Johansson named head of design as had spearheaded rapid growth at Bottega Veneta, will take over from Lee. In turn, Stella Margaret van den Bosch moved into semiretirement after 30 years at the design helm of the McCartney’s Marco Bizzarri is set to move to Bottega on Jan. 1. However, he will be succeeded Swedish fashion giant. by an outsider: Frederick Lukoff, who is slated to join the London-based fashion house Feb. 23 Finally, two industry veterans landed at big brands. Isaac Mizrahi, famous for his signature from Lanvin, where he is business development director. brand and for launching fashion’s high-low craze with his Target Corp. tie-in, was named Jean Paul Gaultier named his third president in as many years, saying Hermès International creative director for all categories of the better-priced women’s Liz Claiborne brand. executive Véronique Gautier would succeed Christophe Caillaud as president And Hussein Chalayan, the Cyprus-born design maverick famous for his mechanical Meanwhile, designer changes underscored the diffi culty of reviving heritage brands, and a dresses, was named creative director at sportswear brand Puma AG, a new post, with the lack of patience on the part of brand stewards in a competitive environment. German fi rm also acquiring a majority stake in his signature fashion house. His fi rst designs for In one of the more abrupt appointments in recent history, Valentino dismissed Alessandra Puma will be unveiled next year.

▲ Oct. 3: Sonia Rykiel, the label, is 40 years young. The

designer celebrates with ▲ Oct. 7: Coach’s Reed a ribald runway show and Krakoff has an unusual party, commissioning tribute extracurricular interest — looks from fellow craftsmen Ultimate Fighting. While he like Jean Paul Gaultier, doesn’t compete in the sport, Martin Margiela, Yohji he does follow it and has even Yamamoto and Rodarte. shot portraits of the athletes for a new book, “Fighter.”

Oct. 7: Wonder Woman may have had an invisible plane, but did she ever make a leveraged buyout? In ▲ Oct. 8: Narciso Rodriguez Diane von Furstenberg’s new version of the classic calls it quits with Liz comic book, three wonder-women characters excel in Claiborne Inc., after a year- the worlds of business, music and cuisine, all while and-a-half partnership. sporting DVF looks. Claiborne ceo William McComb hints at one of the reasons behind the breakup: “We have…seen dramatic ▲ Oct. 6: Alexander McQueen channels Doctor Dolittle for his changes in the luxury spring collection, with taxidermied fauna on the runway and marketplace versus what we nature-inspired designs like a beehive dress. He even took his expected when we formed bow wearing a goofy rabbit suit. the alliance.” fashion moments WWD, MONDAY, DECEMBER 15, 2008 13

WWD.COMWWD.COM Get Creative A sea change is taking place in the media and the difﬁ cult economy is stirring the pot. By Stephanie D. Smith

FOR MEDIA CATERING TO FASHION’S INSIDERS, IT WAS A rushed to partner withwith other brutal 2008. popular style-relateddTV TV Fashion and luxury magazines got a sharp reality check shows, including In Style, Allure this year, as Wall Street crumbled when large investment and Marie Claire. Elle, meanwhile, fi rms Lehman Brothers and Merrill Lynch were swallowed looked to expand its reach toward whole, corporations laid off hundreds of workers and the small screen further after its 9consumers pulled back their spending on luxury goods deal with “Project Runway” — and itss and designer wares. While the brunt force of the economic relationship with fashion director and “Project” downturn wasn’t felt in full until the fall, the end fi nished judge Nina Garcia — expired. The magazineagazine launched a with publishers wiping sweat from their brows as advertisers reality show on The CW, “Stylista,” and had a cameo on “Ugly across retail, automotive and consumer goods signifi cantly cut Betty.” Meanwhile, “Project Runway” remains in the middle of their ad spending. a legal battle between The Weinstein Co., the show’s owners, Glamour, In Style, Lucky, Vanity Fair, W, Esquire and and NBC Universal, with the latter claiming Weinstein did not GQ posted double-digit declines in ad pages, and before give fi rst right of refusal to NBCU before it moved the show to year’s end, some titles buckled under the extreme economic Lifetime from NBCU’s cable network Bravo. pressures. Cosmogirl, Radar and O at Home all folded in the The cast of “Project Runway” at the show’s fi nale at The CW’s biggest hit show remained “Gossip Girl,” which fall. Condé Nast canceled Fashion Rocks and Movies Rock in Bryant Park. has attracted a fan base not just for its story lines around 2009, opting to wait until the economy recovers, and scaled privileged Upper East Side teens, but also for its fashion back Portfolio’s publishing schedule to 10 times annually recession and to gain a stronger position once a recovery infl uence through the looks and designs worn by the characters. from 12 and Men’s Vogue from 10 issues to just two a year. begins. Some fi nally utilized the Internet, investing heavily in Elsewhere, Interview underwent a dramatic transformation Additionally, Time Inc. restructured its publishing division, magazine Web sites that would help acquire subscriptions and in 2008: longtime managers Ingrid Sischy and Sandra Brant shedding 600 jobs in the process, and Hearst Magazines laid also bring new content to the reader on a new platform. Some left the title, and owner Peter Brant brought in a new team off employees across most of its titles, including Redbook, also used bloggers to gather a new audience or to promote led by new co-editorial directors Glenn O’Brien and Fabien Harper’s Bazaar, Esquire and Seventeen. content from the magazine, as the number of female-centric Baron. Esquire celebrated 75 years in business with a fl ashy, Aside from the decline in advertising, circulation has also sites continued to grow online in 2008. electronic-ink cover that got plenty of media buzz. Oprah plateaued — most fashion titles have struggled to improve This year also saw the convergence of magazines and reality Winfrey announced she was launching a new television newsstand sales this year, the best indicator of consumer demand. television, another vehicle to reach new legions of subscribers. network, OWN, and The Wall Street Journal transformed itself The challenges sent a message to publishers that they Following the success of “Project Runway,” “The Hills” and the under new owner Rupert Murdoch. The paper added new would need to fi nd other avenues of growth to offset revenue subsequent buzz and awareness both bestowed its magazine sections, installed an entirely new management team and losses from print advertising, both to survive through the partners, Elle and Teen Vogue, respectively, many magazines even rolled out a glossy luxury quarterly, WSJ.

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SECTION II YEAR IN FASHION

Safe Haven Retailers ﬁ nd comfort online. By Cate T. Corcoran

SO FAR, E-COMMERCE IS PROVIDING A SHELTER FROM THE STORM OF THE REST OF special items not available at local malls. Even holdouts Chanel and Donna Karan have stores the retail world. online, albeit for their lower-priced lines and beauty. Since Thanksgiving, sales online have been doing well, with Cyber Monday marking In 2008, Stella McCartney launched a U.S. cyber store, Pucci went online, Oscar de la the second-biggest selling day online ever (the fi rst was Green Monday 2007). Sales were Renta relaunched a grand salon with impressive graphics, Louis Vuitton started selling online in up 7 percent, to $4.45 billion, for the fi rst seven days of December. Italy and Los Angeles-based designer boutique Presse opened in cyberspace. Last month, Harry Online retail is projected to end 12 percent ahead for the year, though “the Winston started selling $70,000 snowfl ake-shaped earrings and $135,000 necklaces online. days of double-digit growth are over” after that, according to Forrester analyst But after more than a decade, the channel is fi nally maturing, which is why Mulpuru Sucharita Mulpuru. predicts slower growth in the years ahead. Online shopping has been relatively immune to the tidal wave of decline elsewhere With all the added competition on top of an economic crisis, it won’t be surprising if because retailers and shoppers are still migrating to the relatively new medium. It offers some early movers or small players close up shop or look for a buyer. convenience — a place to shop from work or home when stores are closed. Meanwhile, retailers are exploring other 10platforms. Sears, QVC, Amazon and Ralph Lauren

“Sex and the City” for HSN. Stella McCartney’s new shopping site. Net-a-porter’s site.

“Every day and every month, customers are turning to the Internet to shop, so we are inaugurated shopping via cell phone, or mobile commerce, this year. adopting new customers and are coming at it from being a new business and a new way of In TV, HSN has gone upscale with deals with Scoop, “Sex and the City” (to sell looks shopping,” said Net-a-porter.com founder Natalie Massenet. featured in the ﬁ lm), Sephora and Estée Lauder. It’s the fourth-largest cable network, with The online shopper is not different from her off-line counterpart, but rather may very nearly $2 billion in sales, a highly visited Web site and tons of video content to watch online. well be shopping in the stores on the weekend and online while at work or at home after her In September, QVC broadcast live from fashion week, including coverage of trends and children are in bed. Or if she lives far from her favorite retailers, she shops online between footage of its own runway show of exclusive designs from Marc Bouwer, Chloe Dao, Bradley trips. And interestingly, those who shop with any given merchant in more than one channel Bayou, Sara Campbell and Emmett McCarthy. spend the most. (At Macy’s, for example, the customer who shops both channels spends an “Fashion is trendy, technology is even trendier,” said David Lauren, senior vice president average of $969 annually versus $637 in the store only, according to the retailer.) of advertising, marketing and corporate communications for Polo Ralph Lauren, speaking of Most of the heavy hitters are now online, from Sears to Gucci. In addition, myriad local the brand’s forays into mobile commerce and Internet-enabled store windows. “This is more boutiques such as Oak of New York and Hejﬁ na of Chicago and pure-play powerhouses of important than having Beyoncé in your ad. This is much more important than having any contemporary and denim apparel like Shopbop have found favor with women in search of major actor. This got us more publicity than you can get with Brad Pitt.”

IN MEMORIAM The following are among those from the worlds of fashion, Oct. 8: Charlotte Ronson will Nov. 11: H&M has beauty, retail and media who died in 2008. do a contemporary line for reserved the J.C. Penney. I [Heart] Ronson Oct. 13: The prolific largest quantity Stanley Acker Helen Galland Herbert Morris will attempt to translate her Pierre Cardin shows of its Comme Kermit Adler Sydney Garber Brendan O’Regan particular brand of chic for the 235 outfits during his des Garçons Mourad Amarsy Elise Gombos Bettie Page masses. (Later in the month, the latest show. It’s his first stock for Japan, Sergio Arreghini Bernard Groger Enrique Puig retailer announces a similar show in eight years, and knowing the Wendy Banks Louima Hiridjee Max L. Rabb line with ABS’ Allen Schwartz.) instead of presenting popularity of Robert Arthur Grace Jones Kenneth E. Randel during Paris Fashion the label there. Berry Robert D. Kenzer Sally S. Rinard Week, he invites industry The move Mr. (Richard) Nathan Miguel Rocha players to his home on proves savvy Blackwell Kleiderman Tim Russert the French Riviera. as blockbuster Rick Bodowicz Lynn Kohlman Yves Saint Laurent lines form William F. Buckley François-Xavier Lisa Santee around the Roger Caracappa Lalanne Percy Savage store’s Harajuku Melissa Bedolis Susie Lehr Mila Schön

▲ Oct. 16: flagship on Cattanach Frank P. LoPinto Diane Papas Zaha Hadid’s opening day. William Claxton Kenneth A. Macke Semhon futuristic Two days later, Ovadia Cohen Irving W. Marks Richard Shortway Chanel Mobile the collection Alvin Colt Mitsuhiro Matsuda Charles J. Smith Art structure arrives in stores Francine Crescent Jean Maubert Terry Spillane comes to worldwide, Alexandre De Paris Steven McCracken Malcolm Starr Central Park. causing Eugene Fahy Max Mittman Paul Starr ▲ Oct. 10: Diesel celebrates its 30th It contains pandemonium Clay Felker William D. “Bill” Burt Wayne anniversary and plans 17 parties various artists’ among shoppers. Stanislas F. Modell Vivian Wu Yen in locations like Tokyo, Dubai and works inspired Filonovich Stuart G. Moldaw Severin Zurich. M.I.A. and Hot Chip perform by Chanel. Jerry Ford Olivia Monjo Wunderman at the New York party. fashion moments WWD, MONDAY, DECEMBER 15, 2008 15

WWD.COM

Calvin Klein’s 40th anniversary bash. Leighton Meester at the spring opening of the Metropolitan Opera.

Frida Giannini at Gucci’s November UNICEF event. The Year in Parties NEITHER RAIN, NOR SLEET NOR MARKET crash deterred the social set this year. Gucci threw two major benefi ts for UNICEF, with one raising $5.5 million thanks in part to co-host Madonna and guests Tom Cruise, Katie Holmes, Demi Moore and Jennifer Lopez. A few months later, some of those stars, plus dozens of other top names including Beyoncé Knowles and Victoria Beckham, donned their fi nest superhero- inspired regalia for the Metropolitan Museum of Art’s Costume Institute gala, which was hosted by Giorgio Armani, Julia Roberts and George Clooney. Young Hollywood — Leighton Meester, Ginnifer Goodwin, Diane Kruger — came out for the spring opening of the Metropolitan Opera, while an even more junior set including Blake Lively and Emma Roberts hit the bonanza opening of Juicy Couture’s Fifth Avenue fl agship. Domenico Dolce celebrated his 50th birthday (with horse-drawn carriages, no less) and Calvin Klein toasted its 40th anniversary with an over-the-top bash at the Highline in a minimalist space Jennifer Lopez specially designed by John Pawson. Halle Berry, Claire Danes, Kevin and Marc Bacon, Jared Leto and Cynthia Nixon were treated to a performance Anthony at by Estelle, who crooned “New York, New York.” Domenico Then, just days after the Dow fell and banks collapsed, socials Dolce’s 50th arrived en masse to the New Yorkers for Children benefi t. Some birthday party. bopped around in their seats during Patti LaBelle’s performance, while most of the bankers bellied up to the bar. After all, the Julia Roberts show must go on. Even if it just means getting creative, like party at the Costume David Stark designer did when he sourced the elaborate light box Institute gala. centerpieces at the Whitney gala. He shopped at Staples.

Lourdes Leon and Madonna at Gucci’s February UNICEF beneﬁ t.

Gela Nash-Taylor and Pamela Skaist- Levy at the Juicy Couture party. PHOTOS BY STEVE EICHNER AND STEPHANE FEUGERE PHOTOS BY 16 WWD, MONDAY, DECEMBER 15, 2008

SECTION II YEAR IN FASHION Acquisitions and Innovations It was a year of corporate consolidations and experimentation.

CLARINS GOES PRIVATE WITH THE ANNOUNCEMENT OF GOING PRIVATE AND A L’OREAL GAINS YSL BEAUTE management shift, Groupe Clarins has positioned itself BEAUTY INDUSTRY LEADER L’OREAL MADE A MAJOR L’Oréal’s ceo in April 2006. Just one month prior to the for overall growth by focusing on building core brands and addition to its fashion lineup when it acquired YSL Beauté changeover, while Agon was ceo-designate, the company further developing its business in the U.S. and Japan. from PPR in May for 1.15 billion euros, or $1.8 billion at snapped up The Body Shop. Since then, L’Oréal’s buys have In July, the company announced that it would be a current exchange. included Sanofl ore, Beauty Alliance, PureOlogy, Maly’s West, privately held company by taking the company off the The deal gave L’Oréal the beauty license for the Canaan and Columbia Beauty Supply. Paris Bourse. iconic YSL French fashion brand to accompany its During a fi nancial analysts’ meeting in September, Although Clarins has looked into possible acquisitions, Giorgio Armani and Ralph Lauren powerhouses. It also Agon explained his strategy, saying, “You should only make executives have instead taken their focus internally by provided L’Oréal with the licenses to Stella McCartney, an acquisition when it makes true strategic sense. Mr. focusing on core brands such as Clarins, Thierry Mugler, which boasts being the fi rst designer organic skin care [Christian] Mulliez [the company’s executive vice president Azzaro and David Yurman. The company has also invested brand in the market; Oscar de la Renta, Boucheron and of administration and fi nance] and his team have never in everything including innovative products, research, Ermenegildo Zegna. had as much work to do in terms of acquisitions distribution, marketing, Renaud de Lesquen, because our philosophy now is to look at absolutely sampling, training and the former international Jean-Paul everything, to scrutinize all of the opportunities advertising. This move brand president of L’Oréal’s Agon out there. That doesn’t mean we’re going to make also allows the company Giorgio Armani Parfums and more acquisitions, but we’re not going to miss any to look into a more mid- Cosmetics division, was put acquisitions that are right up our street.” and long-term growth in charge of YSL Beauté as During a conference call to analysts, strategy that doesn’t president in August. Agon added, “We know how to work well with require Clarins to act As part of its acquisition designers. What we’ve been able on a short-term basis to of YSL Beauté Holding, to do with Giorgio Armani, please the market. L’Oréal also will gain the with Ralph Lauren and “We have decided Roger & Gallet subsidiary. with Viktor & Rolf, we to concentrate on YSL Beauté previously was believe we can do with what we know best part of PPR’s Gucci Group YSL. It will take a little — that’s to say, the subsidiary. Its volume time, we’re starting activities of Clarins,” for 2007 was estimated from a lower position, said Christian Courtin- Clarins, president and at 649 million euros, or Renaud de but it’s an area we $889.6 million at current know very well.” chief executive offi cer exchange. That sales mark Lesquen PPR executives of Groupe Clarins. In an represented a 3.7 percent pointed out the pluses earlier WWD interview, increase over 2006, from their side. “With Courtin-Clarins said his according to calculations this strategic agreement goal is to make Groupe that appeared in the top with the world leader in Clarins “the leading skin 100 list of WWD Beauty Biz cosmetics, Gucci Group gives Christian Courtin-Clarins care company in the magazine in August. YSL Beauté the opportunity to take world” and raise its share YSL Beauté’s brands full advantage of its upside potential,” said in markets like the U.S., which lags behind in comparison have become a part of François-Henri Pinault, chairman and ceo to others and ranks fourth with a share of 5 percent, in L’Oréal’s luxury division, of PPR. “It also enables the Yves Saint comparison to the European market where it has a 16 meaning it not only will join Laurent brand, in the fi eld of beauty, to percent share. With plans to grow the business to a 16 Armani and Lauren but also fully align its ambitions with its worldwide percent share in the U.S., Courtin-Clarins is looking at a 4 Lancôme, Biotherm, Helena reputation. With its expertise and to 6 percent sales target for the entire company. He noted Rubinstein, Shu Uemura, knowledge of international markets, L’Oréal that skin care has experienced double-digit growth, while Kiehl’s and others. would be able to continue and step up the the fragrance is growing at a slower rate since there “are “This proposed work already achieved to date.” still many fragrances coming.” agreement represents a Robert Polet, Gucci Group’s ceo, “I think that we will be more at the end of the year at 4 great opportunity for L’Oréal pointed out, “This agreement would be key [percent] than 6 because of the external conditions,” said and its luxury products for Yves Saint Laurent. The strength and Courtin-Clarins in an interview earlier this fall division,” said Jean-Paul expertise of L’Oréal would put the further For 2007, Clarins experienced sales of 1.01 billion euros, Agon, L’Oréal’s chief executive. “Yves Saint Laurent is a development of the brand on a faster or $1.38 billion at average exchange, a 4.2 percent rise. mythical French luxury brand. It is admired the world over track. The collaboration between L’Oréal The company has also made management changes and is particularly complementary with our current brands. and Yves Saint Laurent Couture would with Philip Shearer promoted from Clarins’ executive We are convinced that its integration into our luxury assure the consistency of Yves Saint vice president to the new president of the company’s products division would speed up its development. This Laurent’s brand image.” executive board, making him the chief executive offi cer, strategic agreement will reinforce our position in the L’Oréal’s purchase squashed back in March. Shearer succeeded Courtin-Clarins, luxury cosmetics market.” earlier speculation that YSL Beauté who was appointed chairman and president of Clarins’ The latest deal continues Agon’s aggressive acquisition would become part of Groupe Clarins. supervisory board, replacing Serge Rosinoer, who strategy since he succeeded Lindsay Owen-Jones as — Pete Born remained as a board member. — Michelle Edgar

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ARDEN’S LATEST DEAL BRANCHING OUT ELIZABETH ARDEN INC. PURCHASED THE completed its integration of Claiborne’s brands global licensing rights to Liz Claiborne Inc.,’s in late August and named Spiro executive vice IT’S NOT QUITE TONY RANDALL AND JACK KLUGMAN — NOR JACK fragrance brand portfolio in late May, giving president of Claiborne brands, in charge of Lemmon and Walter Matthau, for that matter — but retailing this year has Arden control of the Juicy Couture, Usher, leading global development. seen its share of odd couples. Lucky Brand and Claiborne scent franchises and The move was intended to maximize business Or, perhaps not so odd, considering the continued blurring of the mass expanding its reach in the beauty world. prospects for Arden and the Claiborne brands. In and prestige channels of distribution, and mass retailers’ desire to be on the E. Scott Beattie, chairman, president and early November, Beattie indicated that the union prestige fi eld of play. chief executive offi cer of Elizabeth Arden, was expected to help pull the company CVS, for instance, has opened a new concept called Beauty 360. The told WWD in May, “This allows Arden through a tough holiday season. While store, which is located adjacent to a CVS store on the Dupont Circle in to acquire these brands and leverage he acknowledged store traffi c was Washington, is the fi rst of about 500 more slated to open over the next them with our existing infrastructure, dramatically down due to the current several years, according to Larry Merlo, president of retail for the $76.33 and at the same time we’ll provide fi nancial crisis, he said retailers were billion chain, which has about 6,800 stores. an ongoing royalty earnings stream stocking up on basic inventory and Inside Beauty 360, which has a white motif with brushed-steel accents, to Claiborne.” stock for Christmas. In the quarter is a host of brands with more of a prestige positioning than CVS’ typical Neither company commented E. Scott ended Sept. 30, Arden’s net sales mass-market assortment. Many of these brands are staples on TV shopping on terms of the deal, although Beattie gained 4.6 percent to $284.2 networks, with Laura Geller makeup, Borba and Perlier among them. several fi nancial analysts said million, versus $271.8 million a year Additional brands in the Beauty 360 assortment include Paula Dorf Arden would pay royalties to earlier; North American fragrance cosmetics, Freeze 24-7, Ahava, Fushion Beauty, Dr. Brandt, ModelCo, Liz Claiborne Inc. in lieu of an sales were responsible for between StriVectin, Blinc Cosmetics, Talika, Supersmile, Pop Beauty and Bloom up-front fee. At the time of the 60 and 65 percent of Arden’s overall Cosmetics, as well as several newer brands, including Canyon Ranch skin acquisition, Claiborne’s fragrance sales, the company said. Net sales in the care and It Cosmetics. Fragrance walls are stocked with brands from P&G business was said to generate at least North American fragrance business gained 9 Prestige, Coty Inc. and Clarins. $270 million in sales. Arden, which distributes percent, driven largely by the addition of Claiborne’s The Beauty 360 units, each complete with a treatment room, also offer in both the prestige and mass market channels, fragrance portfolio, according to Arden. The move beauty services like manicures, express facials and makeup application. handled an estimated $70 million-plus of Liz also helped lift revenues in U.S. department stores Claiborne’s fragrance sales in the food, drug and by 45 percent, the company said. However, for the CVS’ Beauty 360. mass channel as the distributor for the apparel fi rst quarter ended Sept. 30, Arden posted a net loss company, SunTrust Robinson Humphrey analyst of $12.5 million. According to Arden, this was largely William Chappell told WWD in May. due to costs related to the integration of the Claiborne At the time of acquisition, Liz Claiborne’s fragrance portfolio, the challenging retail environment, fragrance arm, Liz Claiborne Cosmetics, was run and the impact of foreign currency fl uctuations. by Art Spiro, who served as president. Arden — Julie Naughton and Molly Prior DO IT YOURSELF AS THE ECONOMY HAS HEADED SOUTH THIS YEAR, AT-HOME treatments have been growing in popularity. And innovations are yielding spa and salon-worthy merchandise. One of the latest products to change the way women view at-home hair color is Clairol’s Nice ’n Easy Perfect 10, which launched in the fi rst quarter of the year. The kit has been designed and formulated to address many However, while the Beauty 360 stores don’t carry oft-coveted brands like Estée consumer issues with coloring hair at home, such as timeliness Lauder, Clinique, Lancôme, Dior or Elizabeth Arden, its neighbor to the north, (Perfect 10 is designed to work in 10 minutes); odor (a reformulation Shoppers Drug Mart of Canada, with its own beauty and wellness concept called has yielded a lightening system that smells not unlike a shampoo) Murale, does carry the aforementioned luxury beauty brands and high-end beauty and quality (lower pH levels in the lightening system means less lines, also including Bobbi Brown, Chanel and Nars, as well as Beauty So Clean. damage to hair, said Procter & Gamble Co. offi cials.) According to The store’s fragrance section includes more than 75 men’s and women’s Information Resources Inc., sales of Perfect 10 have surpassed $22 scents, with Prada, Donna Karan, Chloé, Cartier and Etat Libre d’Orange among million for the 52-week period ended Oct. 5, excluding Wal-Mart. them. It also features a dermatological area for skin testing and consultation, and Known for her on-the-go portable products, beauty innovator Lisa Hoffman has designed items to cabins for facials and treatments, along with a pharmacist and an aesthetician. make an at-home spa facial a regular part of face care. Shoppers Drug Mart executives said they believe the potential exists for 50 “People don’t often have time to go to a spa and get a facial. I know I surely don’t,” said Hoffman. Murale stores in Canada, after which an international expansion may follow. In April, Bergdorf Goodman and Apothia at Fred Segal received the Spa Facial Collection, a 10-step With an average transaction estimated at $65 to $85 a shopper, Schreiber professional spa system designed to cleanse, treat and hydrate skin. Industry sources estimate that the said each store could generate annual sales of $4.5 million to $8.5 million. Spa Facial Collection will generate between $3 million and $5 million in fi rst-year retail sales. On the purely prestige side, Space NK, the mainstay U.K. apothecary, has The DIY nail category at mass is doing well too, as nail salon owners report that their chairs have begun building a network of stores in the U.S. While it has a handful of stand- been empty lately. alone stores and plans to open a handful more next year, the retailer has partnered Mary Van Praag, senior vice president of sales at Coty, noted that the nail color market was up 5.6 with Bloomingdale’s to open in-store shops at the Macy’s Inc.-owned retailer. percent year-to-date and that consumption of nail treatments, which had been fl at, spiked in the last The $100 million, London-based chain has opened locations at three months. In addition to at-home manicures, women are looking for speed and multibenefi ts, she Bloomingdale’s 59th Street fl agship in Manhattan and in White Plains, N.Y., said, citing impressive movement of Sally Hansen’s Color Quick Pen and Complete Care 4-in-One and expects to open units in Boston’s Chestnut Hill; Manhattan’s SoHo Nail Treatment. Even at-home hair removers are benefi tting from the home treatment process. neighborhood; and fi ve Southern California doors — Newport Beach’s Fashion Gina Drosos, P&G Beauty’s president of Global Personal Care, in May said, “This is the most Island; Costa Mesa’s South Coast Plaza; Century City; San Francisco; and The turbulent economic time that I’ve seen in my 20 years in the business,” She recalled reading in a Galleria at Sherman Oaks — by yearend. recent report on household spending that, 18 months ago, consumers spent about 20 percent of At least 10 additional doors will get the concept next year, said Howard their income on staple items. That number has since surged to 40 percent. Kreitzman, vice president of cosmetics and fragrances for Bloomingdale’s. Retailers said they’ve noticed more women looking for at-home beauty products. They believe that The Space NK boutiques at Bloomingdale’s could each do upwards of $1.5 has helped sales of everything from skin care to styling tools. The question is whether women will million in their fi rst year of operation, according to industry sources. return to salons once the economy improves. — Matthew W. Evans — Andrea Nagel 18 WWD, MONDAY, DECEMBER 15, 2008

SECTION II WWD.COM YEAR IN FASHION/TheWWDList Footwear brands, like most other categories, faced a challenging selling environment, but a number of big labels are still generating some serious buzz online. Below are the brands that popped up most in Internet searches during the month of September this year, according to San Francisco-based Stylophane. What’s Clicking com, whose All Brand index tracks more than 800 fashion brands. Dominating the list are sneaker companies and boot makers, with a few top fashion names The top 20 shoe brands most searched for online during thrown in for good measure. On page 20, another list of interest from 2008. the month of September. — Originally reported by Jennie Bell, Footwear News NIKE STEVE MADDEN Total searches for the month of September: 932,391 Total searches: 79,401 Nike maintains its standing as the most-searched Madden was one of the few fashion labels to break label on the Internet. And despite a 10 percent dip in into a top 20 list dominated by sneakers. Third- September, clicks were up 148 percent over the six quarter net sales ended Sept. 30 increased 13 percent 1 months ended Sept. 30. 11 to $128.1 million, compared with $113.4 million in the third quarter of 2007.

UGG MERRELL Total searches: 382,564 Total searches: 77,717 Cooling temperatures have kicked boot sales — and Not only did Merrell’s online clicks rise in searches — into high gear, and the biggest beneﬁ ciary September, but parent Wolverine World Wide also is Ugg, which jumped from number-four on the list in 12 said recently the brand continues to grab market 2 August to its September ranking at number-two. share in a tough environment.

CAMPER BIRKENSTOCK Total searches: 305,755 Total searches: 60,985 Already a hot ticket in Europe, Camper, which is Birkenstock has consumers covered no matter what headquartered in Spain, is gaining momentum in the the weather. Its Arizona and Gizeh sandals are a U.S. For the six months ended Sept. 30, searches coastal staple, while Northerners have switched to 3 increased by 1,021 percent. 13 the Boston clog.

ADIDAS ASICS Total searches: 235,934 Total searches: 49,441 The three-striped brand fell slightly last month to Training for the ING New York City Marathon was the number-four spot. But Adidas is never far from well under way in September, but most runners shoppers’ minds, especially via its collaboration with apparently were already outﬁ tted. Searches for 4 Stella McCartney and its sponsorships of athletes 14 sponsor Asics fell 36 percent. from collegians to Olympians to the pros.

PUMA TIMBERLAND Total searches: 156,112 Total searches: 49,426 Even though its star athlete, Usain Bolt, stole the Its boots are big in both urban and suburban markets, show in Beijing, it didn’t help drive Internet searches but Timberland had another selling point this fall: Its 5 for Puma in September. Clicks fell 37 percent. green EarthKeepers line added new product for men 15 and women.

CONVERSE REEBOK Total searches: 150,202 Total searches: 46,295 Converse held onto its number-six ranking for three Reebok put the moves on the ladies in September, consecutive months over the summer. And according launching a global marketing campaign aimed at to retailers, the brand was one of the leaders of the female consumers. “Your Move” set out to prove 6 back-to-school season. 16 ﬁ tness is fun.

NEW BALANCE JIMMY CHOO Total searches: 132,738 Total searches: 45,567 Another b-t-s favorite was New Balance. The Thanks to an almost 300 percent rise in searches, Boston-based brand beefed up its standing with the Jimmy Choo catapulted to number 17 in September, 7 running community through new product and its from number 30 in August. major summer ad campaign, “LOVE/hate. this is 17 the new balance.”

SKECHERS BROWN SHOE Total searches: 98,872 Total searches: 44,846 Internet searches for Skechers dipped 40 percent in As the parent company of Via Spiga, Naturalizer, September, but independent retailers said sales were Dr. Scholl’s, Famous Footwear and several other 8 strong during the late-summer season. popular brands, Brown Shoe is a top search for 18 consumers and investors.

CLARKS K-SWISS Total searches: 80,340 Total searches: 35,083 Clarks was most likely another beneﬁ ciary of the Fresh off the U.S. Open in New York, tennis-friendly fall boot hunt, as the comfort brand saw a 13 percent brand K-Swiss posted a bump in Internet searches. increase in online searches in September. Also creating buzz were its high-performance running 9 19 kicks.

DC SHOES VANS Total searches: 80,036 Total searches: 35,010 Like boot makers, sneaker brands rule the colder The grandfather of skate product has fallen far months, and skate brands such as DC Shoes are from its number-one ranking in May 2008, but the connecting well with younger consumers. 20 70 percent search increase could mean it’s staging 10 a comeback.

SOURCE: STYLOPHANE.COM; DATA REPRESENTS THE FREQUENCY WITH WHICH THE BRAND NAME APPEARS AS A SEARCH TERM IN LEADING INTERNET SEARCH ENGINES, INCLUDING MSN.COM AND YAHOO.COM, IN SEPTEMBER 2008; ORIGINALLY PUBLISHED IN FOOTWEAR NEWS ON OCT. 13 A Berkshire Hathaway Company www.hhbrown.com 20 WWD, MONDAY, DECEMBER 15, 2008

SECTION II WWD.COM YEAR IN FASHION/TheWWDList Urban contemporary specialty stores are facing a tough challenge as department stores such as Macy’s and Dillard’s ﬂ ex their larger muscles. Three years ago, chains such as D.e.m.o. and Mony were major players in the sector; they’ve since shuttered or dwindled. According to The NPD Group, a market research ﬁ rm based in Port Washington, N.Y., total U.S. apparel sales were $192.7 billion for the 12 months ended April 30. Of that amount, $3 billion is hip-hop, with 60 percent of that aimed at men’s hip-hop. Fashion also is changing, as younger Street Stuff consumers begin to take more interest in collections from Mary-Kate and Ashley Olsen, Urban contemporary retailers ranked by number of stores.* Victoria Beckham and Mandy Moore. Below, a look at urban contemporary retailers that still dominate the specialty scene. — Cecily Hall

UNDERGROUND STATION Number of stores: 176 Underground Station features apparel brands such as Akademiks, Apple Bottoms and Baby Phat. The Brooklyn, N.Y.-based retailer’s footwear labels include Timberland, Phat Farm, Puma, Converse and Ralph Lauren, among others. The chain is operated by Genesco Inc., which was acquired last year by Finish Line Inc. As of February, the chain operated 176 stores, averaging 1 approximately 1,775 square feet, throughout the U.S. More recently, Genesco reported earnings from continuing operations of $9.5 million, or $0.43 per diluted share, for the third quarter ended Nov 1. Net sales for the third quarter increased by 5 percent to $390 million, compared with net sales for the same period last year of $372 million. Net sales for the Underground Station Group were $24 million for the third quarter, and same-store sales rose 1 percent from the prior-year period.

MAN ALIVE Number of stores: 95 The Finish Line Inc.-owned hip-hop fashion retailer opened its ﬁ rst store in 1969. Located in Benton Harbor, Mich., the edgy store “featured a pink shag carpet, a pink vintage cash register and funky music bumping from the store’s speakers,” noted the company. Today, the retailer’s 90-plus units boast apparel and accessories from the likes of Enyce, G Unit, Rocawear, Sean John and Deréon. Stores can be found in 18 states, although the majority are located in Georgia, Michigan and Texas. The three most 2 recent openings last fall were in Norfolk, Va.; Huntsville, Ala., and Killeen, Tex.

AGAINST ALL ODDS Number of stores: 70 Founded in 1995 by Korean-American Kenny Khym, Against All Odds “ﬁ rst started with a mission to challenge the world of hip-hop fashion and, after conquering this market, moved to a much more diverse merchandise assortment,” stated the company. The Moonachie, N.J.-based retailer carries apparel brands such as Dickies, Coogi, Marc Ecko, G Unit, Lot 29 and 3 Deréon, as well as accessories and footwear. The privately held ﬁ rm’s locations are scattered throughout New Jersey, New York, Arizona, Florida, Pennsylvania, Massachusetts, Virginia, Maryland, Connecticut and California.

JIMMY JAZZ Number of stores: 46 Jimmy Jazz president and founder Jimmy Khezrie opened his ﬁ rst location in 1988 on Delancey Street in Manhattan. Today, the Brooklyn, N.Y.-based retailer has expanded to nearly 50 locations across New York, New Jersey, Pennsylvania, Michigan, Illinois, Maryland, Virginia and Georgia. Jimmy Jazz offers men’s, women’s and children’s apparel and brands including Nike, 4 Timberland, Ed Hardy, True Religion, Antik Denim and Rocawear. The retailer’s parent company, Oved Apparel Corp., also owns urban brands such as Akademiks and Mecca, as well as Prps, a high-end denim label; Company 81, a sporty men’s line, and, most recently, Boy Meets Girl by Deesh, founded by Stacy Morgenstern Igel.

CITY BLUE Number of stores: 35 A favorite among professional basketball players such as Allen Iverson, this urban chain, founded in 1981 by Joe Nadav, is located primarily in Philadelphia, though a few shops can be found in New Jersey, Delaware and Ohio. Nadav, who moved to the City of Brotherly Love from Israel in the Seventies, opened his ﬁ rst shop on 13th and Market Streets. He decided to name the store City Blue for its close proximity to City Hall, but he included the Blue after staring at the hefty piles of blue jeans on his 5 shelves. Selling brands such as Sean Jean, Rocawear and Marithé & François Girbaud, the chain also boasts a large selection of shoes and boots from brands such as Reebok and Nike. The retailer also operates Lady Blue shops, which are dedicated solely to women’s wear (all others are coed).

EPIC Number of stores: 21 A mall-based chain, Epic stores are owned by Retail Apparel Service Corp., a privately held company with headquarters in Freeport, N.Y. The company said it strives to focus on trends and that it places more of an emphasis on fashionable looks than on brand names. Epic stores are concentrated in the Northeast and Florida — locations in the New York region can be found on 6 Staten Island and in Queens. The company also operates the Law chain. Epic’s lineup of urban contemporary brands features mainstay labels such as Rocawear and Sean Jean, while Law offers more contemporary streetwear brands such as Artful Dodger.

DR. JAY’S Number of stores: 19 Baby Phat, Deréon, Nike, Rocawear, Converse, Timberland and Ed Hardy are just a few of the brands carried by the New York-based retailer. In October 2007, Footwear News stated, “Founded in the mid-Seventies by the Betesh family of South Bronx, Dr. Jay’s opened in hip-hop’s birthplace just as the movement took off.” Manne Gonzalez, head buyer for the retailer, 7 told FN at the time, “[Our customers] want value, but they don’t want it to look cheap. The customer isn’t stupid. They don’t want to spend a lot of money, but they don’t want it to look like it’s going to fall apart.” She noted of the urban customer’s direction: “We’re going to see a little morphing of urban and suburban. Urban customers don’t know what they want right now — they’re fact-ﬁ nding.” Dr. Jay’s also operates an e-commerce site, drjays.com, but it is owned and run separately.

MONY Number of stores: 3 Once an ideal destination for hip-hop streetwear, Brooklyn-based Mony has closed a number of its stores since 2005, when it operated 11 locations in the New York area. Remaining units feature apparel from brands including Apple Bottoms and Marc Ecko, along with Pastry, a line created by Vanessa and Angela Simmons, who are Kimora Lee’s nieces. The brand, which 8 features a full line of junior sportswear, footwear and handbags, entered specialty retailers this year. Mony has worked to keep its apparel offering current: the retailer introduced several premium denim lines, such as Seven For All Mankind and Joe’s Jeans, and also features higher-end names like Juicy Couture and True Religion.

SOURCE: ORIGINAL REPORTING BY WWD; IN CASES WHERE COMPANIES DID NOT PROVIDE CURRENT STORE INFORMATION, FIGURES WERE DETERMINED FROM WWD RESEARCH; *TOTAL STORE COUNTS WERE AS OF ORIGINAL PUBLISHING DATE, JUNE 26 TAKE CENTER STAGEPHOTO BY DAVE YODER FALL ’09 COLLECTION SEASON IN PRINT & ONLINE FEBRUARY 13-MARCH 31 FOR MORE INFORMATION ON ADVERTISING, CONTACT CHRISTINE GUILFOYLE, PUBLISHER, AT 212-630-4737, NEW YORK | LONDON | MILAN | PARIS OR YOUR WWD SALES REPRESENTATIVE. 22 WWD, MONDAY, DECEMBER 15, 2008

SECTION II

YEAR IN FASHION Amy Winehouse

“I make these clothes as if they are unisex. I mean, some of the clothes are clearly just for girls, you won’t see They Said It me wearing a dress or anything, but I do like to wear a slimmer jean.” Fashion’s highly quotable crowd was at it again. Compiled by Dianne M. Pogoda — Fall Out Boy Pete Wentz, on the line he’s designing for Nordstrom; March 20 “I live by astrology. I am a Libra. I can’t make up my “The women’s business is the craziest business in the mind. We never fi nd a balance. We like it all.” world and it’s been hard for us to get out of the gate, “Temptation has to be — Donna Karan, discussing her zodiac-inspired handbag line; Jan. 10 but we’ll get there. When we do, it’s going to be big.” permanent.” — Sean “Diddy” Combs, after not showing his women’s — Karl Lagerfeld, April 7 “Mostly I like that they [my Bottega Veneta collection on the runway as promised; Feb. 11 sunglasses] cost $400….I just got two new cars. I paid ▼ Charlize “It’s fascinating to me, cash for both of them. One was a Range Rover; the “He was hip when everyone else was still hep.” Theron because in England we don’t other was a Cielo AMG Mercedes. They cost $112,000 — Sidney Kimmel about Max Raab in Raab’s obituary, Feb. 25 have campaign contributions, and $109,000. Next, I’m getting a Lamborghini. I’ll we don’t have primary elections. pay cash for that, too, and get it over with. I’m going “My life’s dream has been to promote self- Rupert Murdoch just decides.” to have, like, 10 cars by the time I’m done, and I’ll pay esteem for women and wellness for the entire — Tracy Ullman, April 7 for all of them up front. Credit just gets you f---ed up. family. Through the Wal-Mart stores and Web I don’t care if it costs me $600 to fi ll up my tanks. I’m site, I can reach more people and affect more “Of course, I’m still in love with gonna have six cars with $600 worth of gas and I’ll lives than in any other venue.” fashion and couture. But I think just go on overseas and buy my gas by the barrel.” — Norma Kamali, on her deal to create a line today they have to share other areas. — Music producer Terius Nash, Jan. 10 with Wal-Mart Stores Inc.; Feb. 28 Fashion for me is just a little bit over. That’s why I like to have some new “What would I rather be “I have to admit that Domenico is blood by working in hotels, theater doing? I’d rather be doing Madonna much more of a soccer fan than I and other projects inherent in art…. anything other than talking am. However, when you go to a game Life is short. Sometimes you have to about what I’d rather be and see an architect, a politician, be a workaholic.” doing.” a lawyer, a worker — young and old — Christian Lacroix, April 15 — Casey Affl eck at the National Board together — you realize how important of Review awards, Jan. 17 soccer is culturally and thus it’s “Women’s apparel at Kmart looked something that interests me and like a big bazaar.” “I think the people react too something I need to be involved in.” — Lisa Schultz, Kmart; April 15 fast and scare themselves. — Stefano Gabbana, on Dolce & Gabbana’s affi liation People who start the day with the AC Milan soccer club; Feb. 13 “Money is an extraordinary club. It’s thinking about catastrophes a global club, and money talks very have no chance at the end “How long does fashion week last? Is it loudly. And business runs the world, of the day. I wake up in the really a week?” whether we like it or not.” morning so happy to be alive — Amy Winehouse, March 3 — Rita Clifton, Interbrand consultants; April 22 and healthy.” — Max Azria, Jan. 31 “My publicist just called me a dork. Doesn’t “She’s the biz.” she know I’m the sexiest woman alive?” — Paul McCartney, about his daughter Stella, “Tommy Tune interviewed — Charlize Theron, March 13 at a show of her collection in Liverpool; June 3 me this morning for Interview. I think I was in heaven for “It’s like a sculpture you can walk in.” “I think it’s beautiful they’re finally a minute.” — Karl Lagerfeld, on the Chanel Mobile Art coming together. That is family power.” — Brooke Shields, Feb. 6 pavilion in Hong Kong; March 14 — Yoko Ono, at the McCartney show and concert in Liverpool; June 3 “I had Gucci and UNICEF on “Some woman just asked me to make her my side, so that helped. It’s wedding dress. I took one look at her ring “When you’re just getting started, you pretty chic, isn’t it?” and was like, ‘Let’s go, girl!’” take whatever you can get. Starving had — Madonna, at the U.N. fund-raiser — Newly minted “Project Runway” winner no appeal to me.” concert for Malawi; Feb. 8 Christian Siriano, March 14 — Actress Margaret Colin, June 17

MILEY’S MINIONS Miley Cyrus, aka Hannah Montana, gave a free concert in New York’s Bryant Park on a hot Friday morning in July. Thousands of tweens clad in HotPants, sequins and all manner of Miley style (and their parents) jammed the park. Here’s what some of her minions had to say. • “She does the right thing at a young age, and she doesn’t have a big head.” Kelsey Graham, age 13 • “I just love her music, and she’s so real. I picked out [my outﬁ t] two nights ago.” Marlena Prast, age 13 • “I have two posters of Miley at home, and I like to look at her clothes. They’re, like, springy and bright.” Kaitlin Millier, age eight

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A Subsidiary of Sterling National Bank – The Business Bank – www.SterlingNationalBank.com WWD, MONDAY, DECEMBER 15, 2008 23

WWD.COM

“At the end of the day, sentiment is sentiment, “We haven’t been on vacation in two years or and people want these things that people have something like that. We’ve been holed up in the always had. It just might be Mike and Jack house taking care of babies.” FOR WHOM DO WOMEN DRESS? instead of Mike and Mary.” — Jennifer Lopez, on attending Domenico Dolce’s — California jeweler Neil Lane on same-sex marriages’ 50th birthday party in Milan with husband WWD asked this provocative question of showgoers impact on business, June 18 Marc Anthony; Sept. 30 during New York’s collections in February. Here are some of their responses: “How do we compete [on] a peanuts budget with “The only restriction I’ve given him is that I Anne Hathaway: “Most women dress for their most Ralph Lauren, who does 140 [ad] pages in The must be able to move easily. If I have to concern fashionable friend.” New York Times? The greatest ad you can have myself with a dress sleeve or a sequin or things Isabel Toledo: “Women dress for men. I do dress for is having people wearing the clothes, which coming out that shouldn’t — that’s a problem.” myself because it makes me feel empowered, but I’m starts with Matilda the housewife or Matilda — Tina Turner, on her stage costumes definitely looking for [husband] Ruben’s expression, the secretary.” by Bob Mackie; Sept. 30 not his approval.” — Bud Konheim of Nicole Miller, French Vogue’s Carine Roitfeld: “I don’t know for everyone on product placement; June 18 “I have been a designer for a lot longer than else. For me, it’s for myself. When you feel good about many of them have been journalists. I find it yourself, you feel good about everyone else.” “Had I been tall and blonde I might have gotten strange to speak with a kid with an earring here Designer Tina Lutz: “I would hope women would dress for more roles and made tons of money, but then and a piercing there who comes in front of me themselves because you can only feel good about life if I probably also would have gotten hooked on and judges me.” you feel good about yourself.” drugs and ruined my career by now.” — Giorgio Armani, Oct. 27 Marylou Luther, editor of International Fashion Syndicate: “I — Salma Hayek, June 19 think younger women dress for men.” “[Since] John McCain is unlikely to give two gay Valerie Steele, director of the Museum at the Fashion Institute of “I’m a girl. I’m weak in front of beautiful dresses.” hoots about my gay civil rights, I’m going with Technology: “Most dress for their cohorts.” — Natalia Vodianova, at the Valentino the good-looking one. Apart from being the right Photographer Nigel Barker: “Most women dress for exhibition in Paris; June 19 candidate, Mr. Obama looks better in a suit, themselves. Most men don’t realize what’s going on which can only be a good thing.” half the time. If their friend at work wears the same “One of the things I have not liked — Simon Doonan, Barneys New York; Nov. 4 thing every day, they wouldn’t notice. It’s not in the in the past two administrations is gene pool.” this extraordinary inner-house “Remember where you came Designer Agatha Ruiz de la Prada: “In Spain, women dress awe for their president. You from and how important that for men. I don’t know what happens here. I think know, I loved Reagan, but he is, and that will sustain you.” it’s very tiring to have to dress to be sexy all day. It’s was a man and he was flawed — André Leon Talley, Nov. 3 horrible and exhausting to have to wear high heels for and I wrote about that in my 24 hours.” first book. I am astonished “I am the Yves Saint Jamee Gregory: “Women always dress for other women.” that the Bush people are so Laurent girl, for a long time Designer Isabella Tonchi: “I would hope people dress for robotic. I am astonished that and forever.” themselves. To be liked by other people, you have to if you ever criticize your — Betty Catroux, Nov. 3 like yourself, feel good about yourself and guy, he will banish you from be confident.” the kingdom.” “If you had $50 million and Sophia Bush: “I dress for myself….You’ve got to dress — Peggy Noonan, June 20 you’ve got $15 million left, for you.” you’ll still drink expensive “When you figure out your Paul whiskey and Champagne and suitcase, you figure out your life.” McCartney smoke expensive cigarettes, and — Diane von Furstenberg, June 20 you won’t stop buying dresses for your wife as long as they don’t cost more “To be dressed in clothes produced by Russian than 35,000 euros [$44,600].” designers has become hip, not outdated. Before, — Russian businessman Andrei Foman, these were clothes someone with a lot of money on the economic downturn; Nov. 4 would never wear.” — Anna Lebsak-Kleimans, Fashion Consulting Group “When you see things on television, you don’t of Moscow; July 3 know if it’s true. I wanted to see it with my eyes and touch it myself.” “Chanel doesn’t do country-western.” — Donatella Versace, visiting the site of — O.J. Shansby, July 8 the earthquake in Sanjiang, China; Nov. 12 February 3-5, 2009 “It’s less hard-core than New York, which is “The number-one role of the boss or the leader Javits Convention Center still my city. I’m just having a love affair with is to manage your people in a way that it’s their New York City San Francisco.” company. I see company after company after — Koos van den Akker, July 17 company where the boss does not understand that he or she is one of thousands. If they don’t “I was hoping for someone with a more like you, or if they think that you’re a nutcase, developed pectoral region and more chiseled you’re going to be dead.” features for the part of the editor. But in a pinch, — Allen I. Questrom, Nov. 12 Jeff [Bridges] will just have to do.” — Graydon Carter, editor in chief of Vanity Fair, “People who know me know how much I love on the casting for his character in “How to Lose television. I used to absolutely love ‘Wheel of Discover cost-effective resources Friends and Alienate People”; Sept. 12 Fortune’ when I was here in America. I used for lines ranging from mass to run home at 7:30 and used to tell everybody market to entry-level designer. “I’ve never been banned before, It’s that I had a class. Watching very rock ’n’ roll; I kind of like it.” Eva Mendes ‘Wheel of Fortune,’ I discov- — Eva Mendes, on the controversy ered America.” around her appearing nude in — Alber Elbaz, Nov. 12 Calvin Klein fragrance ads; Sept. 12 “In our country, for 70 years “We can afford to be patient. We we really had nothing. It was will have fi ve to seven years in red a Communist country and fi gures, but you have to feed the everybody had to be equal. cow before it gives milk.” Everybody had to be in gray. — Heinz Krogner, ceo of Esprit Everybody had to be the on the brand’s U.S. plan; Sept. 18 same. People were afraid to be different.” “The future of fashion is sleeveless. — Alla Verber of Russia’s Who needs sleeves anymore? You Mercury Distribution, Nov. 12 need to be able to move and be REGISTER NOW! comfortable. To layer. Seasons don’t “One of the hallmarks of www.TexworldUSA.com/WWD exist like they used to. Now it’s cold great leadership is commu- in summer and hot in winter. Things nication and the ability to have changed. Fashion needs to make complicated subjects look forward.” easy to understand.” — Pierre Cardin, Sept. 25 — Roger Farah, Polo Ralph Lauren, Nov. 12 “I’m not Valentino and I’m not retiring.” “Shame on us.” I — Suzy Menkes at a party marking her 20 — Financial adviser Suze I I years at the International Herald Tribune, Sept. 29 Orman, Nov. 14 I RECYCLED CANVAS BAGS JUTE STRINGS & ATTACHMENTS COCONUT GTAGS ORGANIC CANVAS RECYCLED CANVAS LIGHTWEIGHT RECYC OOD BAMBOO RECYCLED CORK HANGTAGS RECYCLED WOOD WEAV PRINT HANGTAGS RECYCLED WOOD HANGTAGS JUTE AND BAMBOO MINGS ORGANIC TAPINGS ORGANIC CANVAS HERRINGBONE PLANT ED CARDSTOCKS RECYCLED PAPER ORGANIC-BASED PAPER BUTTO HOPPING BAGS PRODUCT BAGS RECYCLED CANVAS BAGS CORK JUT STRINGS & ATTACHMENTS COCONUT HANGTAGS ORGANIC CANVAS CLED CANVAS CORK LIGHTWEIGHT RECYCLED HANGTAGS RECYCLE INT HANGTAGS RECYCLED WOOD PLANTABLE SEED CARDSTOCK HA UTE AND BAMBOO TRIMMINGS ORGANIC TAPINGS ORGANIC CANVA RINGBONE PLANTABLE SEED CARDSTOCKS RECYCLED PAPER ORGA D PAPER BUTTONSWANT SHOPPING TO BAGS REDUCE PRODUCT BAGS RECYCLED CA AGS JUTE STRINGS & ATTACHMENTS COCONUT HANGTAGS ORGANI ANVAS RECYCLED CANVAS LIGHTWEIGHT RECYCLED WOOD BAMBO CYCLED CORKYOUR HANGTAGS RECYCLED CARBON WOOD/WEAVE PRINT HANGT A ECYCLED WOOD HANGTAGS JUTE AND BAMBOO TRIMMINGS ORGAN NGS ORGANIC CANVAS HERRINGBONE PLANTABLE SEED CARDSTO ECYCLEDFOOTPRINT? PAPER ORGANIC-BASED PAPER BUTTONS SHOPPING BAG ODUCT BAGS RECYCLED CANVAS BAGS JUTE STRINGS & ATTACHME CONUT HANGTAGS ORGANIC CANVAS RECYCLED CANVAS LIGHTWEIG YCLED WOOD BAMBOOI&Eco RECYCLED canCORK HANGTAGS help. RECYCLED WO AVE PRINT HANGTAGS RECYCLED WOOD HANGTAGS JUTE AND BAMB NGTAGS RECYCLED WOOD HANGTAGS JUTE AND BAMBOO TRIMMIN MMINGS COTTON ORGANIC TAPINGSPLEASE ORGANICCONTACT USCANVAS FOR ALL HERRINGB O PLANTABLE SEED CARDSTOCKSYOUR RECYCLED ECO-FRIENDLY PAPER LABELING, ORGANIC-BASE D APER BUTTONS SHOPPING BAGSTRIM PRODUCT AND PACKAGING BAGS RECYCLED NEEDS. CANVA AGS COCONUT JUTE STRINGSWe offer a full& lineATTACHMENTS of organic and recycled COCONUT materials and HANGTAG RGANIC CANVAS RECYCLEDwork extensively CANVAS with plantable LIGHTWEIGHT seed card stocks RECYCLED, organic WOO AMBOO RECYCLED CORKcotton, HANGTAGS wood, bamboo, RECYCLED coconut and recycledWOOD/WEAVE metals. PRIN RGANIC TAPINGS ORGANICI and E Packaging CANVAS will happily provideHERRINGBONE certification on all ‘green’ materials PLANTABLE upon request. SEE I & Eco a division of I & E Packaging

For more information, contact Ian Kantor at 212-967-8472. 545 Eighth Avenue, Suite 9SW, New York, NY 10018 www.iandepackaging.com

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