Into the Woods NEW YORK — Fur Is Everywhere for Fall

APPAREL PRICES UP/2 INNERWEAR’S SHAKEUP/22 THETHE WWD BUSINESS REVIEW

THE RETAILERS’ DAILY NEWSPAPER MAY 17, 2004 Women’s Wear Daily • The Retailers’ Daily Newspaper • May 17, 2004 • $2.00

STAYING AFLOAT Bailing or Smooth Sailing?

Fashion Retail on an Uncertain Voyage. From the impact of a jobless recovery to curbed consumer spending in a post-refinancing boom era, retail faces daunting seas. {But the tide could change as the industry is buoyed by a consumer demographic that can’t seem to get enough of luxury goods. } Nouveau Riche II: ‘Masstige’ Cash Machine: Refinancing Over? Factors on China: Trade 2005

▲ The WWD Business Review. WWDMONDAY Pages 9-20. Accessories/Innerwear/Legwear Into the Woods NEW YORK — Fur is everywhere for fall. From hats and bags to an old favorite, the muff, accessories are turning up in mink, rabbit and raccoon. Here, Patricia Underwood’s mink hat, Cathy Hardwick’s fox-trimmed mink vest and Tocca sweater. For more, see pages 6 and 7. A Hip-Hop Flip-Flop: Eve Switches Licensees, Signs With Marc Ecko

By Julee Greenberg

ED BY ROXANNE ROBINSON-ESCRIOUT ED BY NEW YORK — Eve’s Fetish has a new partner — and it’s none other than hip- hop entrepreneur Marc Ecko. The rapper-turned-designer has signed a licensing deal with the $350 million Marc Ecko Enterprises after OS, BOTH AT WARREN TRICOMI; STYL WARREN OS, BOTH AT becoming unhappy with her previous licensee, Innovo Group Inc. Innovo had launched the Fetish line at retail last fall. Ironically, the deal with Eve comes only two weeks after Ecko Unlimited

Y ROANNA, HAIR BY DENNIS GOTOUL Y ROANNA, HAIR BY was said to be near an agreement with Beyoncé. Those talks broke down over financial terms of a license, sources close See Change, Page5 TON PLATT/SUPREME; MAKEUP B TON PLATT/SUPREME; PHOTO BY KYLE ERICKSEN; MODEL: REMING KYLE PHOTO BY 2 WWD, MONDAY, MAY 17, 2004 WWDMONDAY Accessories/Innerwear/Legwear Women’s Apparel Prices on the Rise GENERAL Eve’s Fetish has changed licensees, switching from the Los Angeles-based By Joanna Ramey of 0.1 percent, following double- digit increases in each of the 1 Innovo Group in favor of New York’s Ecko Unlimited. WASHINGTON — Retail prices preceding three months. Retail prices for women’s apparel posted a seasonally adjusted 0.6 percent for women’s apparel posted a The retail price report is the 2 increase in April, the Labor Department’s Consumer Price Index reported. seasonally adjusted 0.6 percent government’s most-watched in- monthly increase in April, eas- dicator for inflation, which has William Dillard 2d, chief of Dillard’s Inc. said at the company’s Saturday ing from March’s 1.5 percent been kept in check for years. 2 annual meeting the chain is trying to bring a younger feel to its assortment. gain, the Labor Department re- Goldstein of the Conference Steve Wynn’s $2.4 billion resort set to open next April aims to be the most ported Friday in its Consumer Board said the emergence of re- 3 luxurious in Las Vegas, with upscale stores and private branded shops. Price Index. tail pricing power in a strength- Compared with April 2003, ening economy will likely trig- EYE: The social merry-go-round included the American Ballet Theater gala, women’s apparel prices last ger the Federal Reserve to in- 4 a dinner at La Grenouille, Anya Hindmarch’s 10th and a Cuban barbecue. month increased 0.7 percent, crease short-term interest rates, FASHION: Often, just a touch of fur does the trick. Hats, bags, scarves and reflecting the retail sector’s but not alarmingly. muffs are showing up in rabbit, mink, raccoon and, occasionally, a good fake. ability to gradually raise prices “Business is recovering a lit- 6 in recent months after about Women’s clothing prices rose in April. tle bit of pricing power, which is ACCESSORIES: Thanks to a large presence in fall collections, brooches are five years of being plagued by Here, an American Eagle Tropical cami. going to feed their bottom lines 21 set to be the It accessory in jeweled, feathered, giant or demure styles. price deflation, which can cut and allow them to go out and in- INNERWEAR: A battle for store space is taking shape for spring 2005, into sales and profits. However, for apparel abroad due to the vest…and keep this [economy] according to buyers and vendors at the May market. compared with April 1999, weakened U.S. dollar. spinning,” Goldstein said. 22 women’s apparel prices are “However, we expect the Federal Reserve Chairman down 7.9 percent. downward pressures on pricing Alan Greenspan also has told The WWD Business Review appears as a special section on pages 9-20. “It looks as if there’s a will return in coming months, Congress he is not worried Obituary ...... 8 change in the market for appar- due to the relentless pressures about the specter of rising el,” said Ken Goldstein, econo- of very low-price imports,” prices, but he indicated an in- Classified Advertisements ...... 25-27 mist with the Conference Board, McMillion said in a statement. terest rate hike is inevitable to pegging the pricing power, like Economists widely expect keep inflation in check. The Fed To e-mail reporters and editors at WWD, the address is in much of the economy, to in- the downward pressure on doesn’t appear anxious to act, [email protected], using the individual’s name. creased demand. prices to intensify come Jan. 1, though, since earlier this month WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 Aside from women’s apparel when all quotas limiting apparel it left interest rates unchanged FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. prices posting monthly and and textile trade among World at 1 percent. Rates haven’t VOLUME 187, NO. 103. 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MONDAY: Intima Japan, Tokyo (through Wednesday). Limited Brands reports first-quarter sales and Dillard’s Keen on Youth, Private Label earnings. By Jack Whitsett percent during the 2003 fiscal TUESDAY: Material World, Miami Beach (through year, following a 2.8 percent Thursday). LITTLE ROCK, Ark. — Dillard’s drop in 2002. Tax Free World Exhibition Asia Pacific, Singapore Inc. plans to stop a long-term In a sign that the company’s (through Friday). slide in women’s wear sales by efforts might be paying off, J.C. Penney Co., Saks Inc. and TJX Cos. report first- pursuing a younger, more exclu- Dillard’s said that first-quarter quarter sales and earnings. sive mix, chief executive officer income more than doubled, to William Dillard 2d said Saturday. $53.8 million, or 64 cents a dilut- WEDNESDAY: Talbots, Charming Shoppes, Hot Topic “We need to have better mer- ed share, from $24.3 million, or and Coldwater Creek report first-quarter sales and chandise than we had drifted 29 cents a share. Sales for the earnings. into carrying in the late quarter were up 2.3 percent, to Jones Apparel Group annual meeting, New York. Nineties,” Dillard told share- $1.85 billion from $1.81 billion. holders at the company’s head- Dillard emphasized at the THURSDAY: Gap Inc., Nordstrom, Bon-Ton, Galyans, quarters here. Dillard, who meeting, which was attended by Phillips-Van Heusen, Wet Seal and Aeropostale report spoke for about five minutes at about 30 company executives first-quarter sales and earnings. the department store chain’s and investors, that the younger Dillard’s said that first-quarter Liz Claiborne Inc. annual meeting, Secaucus, N.J. traditionally brief annual meet- shift will not interfere with its income more than doubled, to $53.8 ing, used phrases such as growing reliance on private million from $24.3 million. COMING THIS WEEK FRIDAY: Federated Department Stores annual meet- “younger focus” and “fashion- label merchandise. Last year, ing, Cincinnati. forward” in describing a major private label goods contributed Dillard took only a few ques- May Department Stores Co. annual meeting, effort to spark its women’s and 20.9 percent of total sales of tions on the fly after the meet- Richmond, Va junior department. Sales in $7.86 billion. ing, but said recent speculation those departments were off 4.8 “We’ve almost doubled [pri- that the company might be up vate branding] in four years,” for sale had “no credibility.” Dillard said. Despite this trend, Last month, A.G. Edwards & which the company in its annual Sons analyst Robert Buchanan report called “crucial to its fu- wrote in a research report that In Brief ture success in the marketplace,” Target Corp.’s decision to place gross margins declined in all de- its Marshall Field’s chain on the ● MACK ROLLS INTO APPAREL: Mack Trucks Inc. signed a partments but cosmetics in 2003, block would likely prompt three-year license with Johnny M to produce women’s, men’s due to “competitive pressures.” major department store firms to and children’s apparel, along with cloth and leather bags sport- Dillard’s will be counting on consider making a bid for ing the Mack name. New York-based Johnny M was formed by in- private brands such as Dillard’s as well. dustry veterans John McCoy, president of Components by John Katherine Kelly, Cabernet and “That was in the context of McCoy, and Barry Wishnow, who had been president of Calvin Westbound sportswear to fuel a Field’s being sold,” Dillard said, Klein men’s wear in the early Nineties. Randy Delillo, manager women’s turnaround. The dismissing the possibility that of merchandising and licensing at Mack, said men’s would sparse displays on the perime- the company founded in the launch for spring and would be followed by the other categories. ter of the meeting room largely 1930s by his father and run by He projected first-year wholesale volume of about $35 million. consisted of merchandise from the family ever since might be the department. on the block. WWD, MONDAY, MAY 17, 2004 3 EUROPE WATCH Questrom: Penney’s Focus on Core By Rusty Williamson Penney’s five-year turnaround plan. Currently, women’s apparel, es- Allen GEORGE’S 21ST: Today, George at Asda will unveil its latest capsule PLANO, Tex. — J.C. Penney Co. pecially career, junior and con- Questrom collection — G21, a celebrity- and catwalk-driven line of clothing isn’t interested in purchasing temporary; accessories; men’s and shoes. The 42-piece collection aimed at 15- to 25-year-olds Mervyn’s stores or the Dockers wear; fine jewelry, and home are will be rolled out to 30 Asda stores — and four stand-alone brand, Allen Questrom, the de- among the best-selling categories. George stores — across the U.K. over the next few weeks. “George partment store retailer’s chairman The chain launched the Chris does lots of listening groups with their customers and ‘celebrity and chief executive officer, said at Madden home collection two style’ is a topic that has cropped up on many occasions, the annual shareholders’ meeting weeks ago and it’s off to an auspi- especially with the younger consumer,” said a spokeswoman for at its headquarters here Friday. cious start with sales above plan Asda, a subsidiary of Wal-Mart. “G21 is a direct response to this The $17.7 billion retail chain and lots of positive consumer trend, with emphasis on youthful, fun fashion.” The collection could easily make a move on either buzz, according to Vanessa also features more sporty styles: white tennis dresses, polo tops Mervyn’s or Dockers, considering Castagna, chairman and ceo of and pale denim cutoff shorts, as well as classic denim skirts, it’s soon to be flush with an extra J.C. Penney stores, catalogue and sundresses, fitted jackets and footwear including flip-flops and $3.5 billion from the disposal of its Internet and executive vice presi- limping Eckerd Drugstore chain, dent of J.C. Penney Co. Inc. kitten heels. Priced from $5.40 to $54, the core collection will the net amount it expects to pocket The chain will launch a new change every four weeks. — Ellen Burney after taxes, fees and expenses on wedding registry in September in the $4.53 billion sale to the Jean a partnership with Colin Cowie, a CONGESTION CONFLICT: London’s congestion charge zone could get Coutu Group and CVS Corp. prominent wedding planner with a wider — and residents and retailers aren’t happy about it. The Instead of an acquisition, celebrity following, said Questrom. city’s government wants to extend the zone west into Kensington, though, the 1,020-unit Penney’s Penney’s revitalized catalogue Chelsea and Westminster — all of which boast key shopping and plans to take a more introspective and Internet divisions continue to business areas, including Knightsbridge, where Harrods and Harvey approach and focus on strength- surge with a 3 to 4 percent rise in Nichols are located, as well as the designer and luxury goods stores ening its store, catalogue and sales forecast by year-end. on Sloane Street. In a survey for London’s Evening Standard Internet divisions with trendier Internet sales hit almost $600 mil- than 10 percent last year as it newspaper, 48 percent of those surveyed opposed the western and more compelling merchan- lion in 2003 and are on track to hit makes a concerted push to score extension of the zone. Some 42 percent of those surveyed said dise and expand its reach by $1 billion by 2006, said Questrom. with its target demographic: 80 business in the West End had been hurt by the current congestion opening up to 100 stores over the “Merchandise assortments — percent of its shoppers are next few years, including at least which are a blend of J.C. Penney women between the ages of 30 charge in central London. “We certainly oppose the extension of seven of its smaller but highly lu- private brands and destination and 60. this charge without further research,” said a spokeswoman for the crative off-the-mall stores by year- national brands — are more fash- Questrom’s bullish outlook department store group John Lewis Partnership, which has a store end, said Questrom. Questrom has ionable and trend right,” said was buoyed by first-quarter re- in Sloane Square in Chelsea. “Extending the charge will be bad for said these stores have been regis- Questrom. “We are promoting J.C. sults that saw a 9.5 percent comp- the area’s economy in general, as people will have more reason not tering sales per square foot signif- Penney as America’s year-round store increase and a 6.5 percent to drive into London at all.” Currently, drivers must pay $8.82, or 5 icantly higher than Penney’s mall- gift headquarters and now fea- gain in combined catalogue and pounds at current exchange, to drive during the week in the central based units. ture prominent gift-giving mer- Internet sales, though the London zone, including the shopping areas of Oxford and Bond As for the Eckerd proceeds, chandise statements throughout Internet division singularly Streets. — Nina Jones they’ll be used for common stock the store, throughout the year, surged 45 percent. repurchases and debt retire- and have strengthened our al- “After three years, we have FASHION AID: France’s government-sponsored L'Association ments, he added. ready dominant position in mer- successfully overcome many of Nationale pour le Développement des Arts de la Mode, an Penney’s finished 2003 with a chandise basics such as towels, the initial hurdles associated with association for the development of fashion talent, awarded two comp-store sales gain of about 1 jeans and underwear through im- our shift to a centralized business Paris-based designers grants to help finance their next collections. percent and is planning to finish provements in distribution, ex- model,” concluded Questrom. “We 2004 with increases of 2 to 3 per- panded sizes and depth of stock have not reached the top of the Desiree Heiss and Ines Kaag, who together form the Bless label, cent, the third straight year of on key sizes.” mountain, and the climbing is still will receive $80,000, while up-and-coming women’s designer comp-store sales gains. Operating “Have You Seen What’s Inside difficult, but we are further from Charles Anastase garnered a $62,000 check. ANDAM sponsors profits grew 13 percent in 2003 as a at J.C. Penney?” is the chain’s new the base camp and making good include retailer Galeries Lafayette, the luxury conglomerate LVMH result of gross margin improve- advertising and marketing tag progress toward the summit. We Moët Hennessy Louis Vuitton and the Yves Saint Laurent and ments from better execution in a line, an evolution of its long-run- are progressing toward the com- Pierre Berge Foundation. — Emilie Marsh centralized environment. Central- ning “It’s All Inside.” Penney’s ad- pletion of a major turnaround that ization is one of the cornerstones of vertising budget increased more many thought impossible.” Wynn’s Latest in Vegas: High End for the High Roller NEW YORK — When it opens next April, Steve Wynn’s newest property, Wynn Las Vegas, won’t have an erupting volcano like the Mirage, choreographed fountains like the Bellagio or even a pirate ship battle à la Treasure Island. What it will have is a mountain to shield the entrance from the honky-tonk vibe of the Strip. Inside, public spaces will be luxurious. Retail will be a big part of the experience. The $2.4 billion resort on the former site of the Desert Inn Resort and Casino will have 2,700 guest rooms and amenities such as an 18-hole golf course. About 74,000 square feet will be devoted to retail with 29 stores, including Wynn-owned shops and boutiques for Chanel, Christian Dior, Cartier, Louis Vuitton, Jean-Paul Gaultier, Graff and Brioni, as well as a Ferrari and Maserati car dealership. Clearly, Wynn wants to attract the high rollers. Cartier, whose store will be 2,000 square feet, has another unit at the Appian Way Shops at Caesar’s Palace. Stanislas de Quercize, president and chief executive officer of Cartier in the U.S., said the Wynn Las Vegas store will offer made-to-order merchandise, a service available in about one-third of the firm’s U.S. boutiques. The developer, who is known for his hands-on approach and attention to detail, wants to bring pri- Storefront vate label retailing to another level. Rather than an afterthought, the house brand and multibrand boutiques each will have the impri- matur of a well-known interior designer. Vicente Wolf Associates, whose clients include Clive Davis and New Line Cinema A rendering by Jeffrey Beers International of Daniel Boulud’s restaurant at Wynn Las Vegas. co-chair Michael Lynne, is working on a restaurant and lingerie store for Wynn Las Vegas. The lingerie shop will have a glamorous Forties feel with materials such as Daniel Boulud’s 10,000-square-foot Brasserie. satin, silk and shagreen in shades of soft blue and white. The mannequins will be Achildren’s store and jewelry store are also in the works. standing lamps, where the head is the lampshade. About 15,000 square feet of the company-owned retail real estate will be designed “It’s an incredible merchandising point of view,” Wolf said of Wynn’s project. by the Kramer Group’s Robin Kramer, whose design for the JLo store in Moscow was “They have Chanel and others, but when they go to the house merchandise, the de- recently unveiled. sign is at the level of the high-end shops. Kramer is designing an apothecary for Wynn that will carry brands such as Fresh David Ling, who has designed stores for Philosophy di Alberta Ferretti, is work- and Santa Maria Novella, and she also is designing a men’s and women’s sportswear ing on a women’s multibrand boutique, a women’s shoe store, a fine watch boutique store with a tropical, colonial style and a cafe. where prices start at $10,000 and a small electronics store with lots of toys for boys. “In every hotel created, the excitement is from the sidewalk, but here they’re say- Other well-known designers include Naomi Leff, who is creating a home store ing, ‘Nope, you’re going to have to come in to see it,’” said Wolf. concept, and Jeffrey Beers, who drew inspiration from the classic chateau for — Sharon Edelson 4 WWD, MONDAY, MAY 17, 2004

X ow do they do it? Making it to one glamorous event without any Kalliope Karella’s new book, “Weddings of Style,” at the apartment of fashion emergencies is hard enough, but these women Steve and Christine Schwarzman and danced into the wee hours at a Hmanage to look stylish night after night after night after Cuban barbecue (with a pig on a spit, no less) on the terrace of night — at least last week. The merry-go-round kicked off with Lever House to launch the building lobby’s art collection. the black-tie American Ballet Theatre gala, Tuesday saw a “My theory is, once you go out, you have to go to them all,” dinner at La Grenouille to celebrate the opening of the eye® said Nan Kempner. Gianfranco Ferré store, while guests dressed downtown on By Friday, though, Samantha Boardman was showing signs of Wednesday for Anya Hindmarch’s 10th anniversary at 5 Ninth in the strain. “I need to hibernate for a while,” she said. “I’m planning to Meatpacking District. The ladies doubled up on Thursday to celebrate wear sweatpants all weekend.”

Monday: American Ballet Theatre Gala

Nan Kempner in Gigi Mortimer all Tor y Burch in Valentino and Marisa Noel Brown Rena Sindi in Eva Lorenzotti in dressed up in vintage Dior… Chanel… inin AngelAngel Sanchez…Sanchez… Alvin Valley… Alvin Valley… Carolina Herrera…

Tuesday: Gianfranco Ferré Store Opening. Wednesday: Anya Hindmarch’s 10th Anniversary Party at 5 Ninth.

In Prada and Narciso Rodriguez…

Withith AnyaAnya Hindmarch,Hindmarch, In vintage Yves Saint In Alessandro inin JunyaJunya Watanabe…Watanabe… Laurent… In Naeem Khan… In Carlos Miele… Dell’Acqua… In hippie chic…

Thursday: Party for Kalliope Karella’s “Weddings of Style” and Opening of Lever House’s Art Collection. Nights a Week 4

And in Calvin Klein And in an Earl Jean And in Diane von And in vintage and And in Tory. and Donna Karan. miniskirt. FFuurstenberg.rstenberg. Hermano Scervino. And in casual chic. PHOTOS BY STEVE EICHNER; BURCH AND HINDMARCH, LORENZOTTI AND MORTIMER AT HINDMARCH PARTY BY PATRICK MCMULLAN PATRICK BY PARTY HINDMARCH AT AND MORTIMER LORENZOTTI AND HINDMARCH, STEVE EICHNER; BURCH PHOTOS BY WWD, MONDAY, MAY 17, 2004 5 Change Partners and Dance Continued from page one to the singer and her mother, Tina Knowles, said. The Knowleses last week signed a Marc Ecko and licensing deal with New York-based Kids Headquarters to launch a series of fashion Eve on Friday collections. in Los Angeles. “Signing with Ecko [Unltd.], for me, it’s a no-brainer,” Eve said in an exclusive inter- view with WWD on Friday. “They know quality, they are young and hip and Marc [Ecko] gets it. They are going to give us what we need for longevity, they are going to give it the quality and attention it needs. That’s always what I’ve wanted for my brand.” While Eve said she couldn’t divulge all the details of the split with Innovo because of legal issues, she said her time with the company “was a learning experience and I’m happy we caught the problems while it’s still in its first year.” Executives at Innovo Group could not be reached for comment. Under the aegis of Marc Ecko Enterprises, the new collection of women’s sportswear, headwear, footwear and luggage will debut for fall 2005 retailing. Eve said it is too early to describe the new Fetish collection, but said it would be “more designed and better quality.” “We foresee many synergies between Marc Ecko Enterprises and Eve as a brand and think she’s got an amazing fashion approach and vision, which will be reflected in the new Fetish line,” Marc Ecko said in a statement. “In the next few weeks, we’ll be putting the right team in place to make it happen.” Fetish will be housed in Marc Ecko Enterprises’ expanded space on 23rd Street here and, according to Anthony Ottimo, division president of Fetish, he and designer Peter Lee and vice president of marketing Dana Hill also will leave Innovo to run the Fetish brand under the Marc Ecko Enterprises umbrella. Sources close to Eve said Innovo was having problems producing the amount of product needed for Fetish’s deliveries. The company was set to deliver $7 million worth of orders in its first season, but with the demands of Innovo’s other brands, such as Shago and Joe’s Jeans, the load was reportedly too much for its factories to handle. Fetish also switched designers after the fall season when Eve didn’t like what the original designer was creating. That was when the company hired Lee, a designer in whom Eve has confidence and Ottimo said is able to design clothes that represent the rapper’s image and style. “Innovo has been great and they are really good at what they do, but they just signed on too much at one time,” Ottimo said. “There is a lot of opportunity on the junior floor and Ecko [Unltd.] really does understand that.” Marc Ecko Enterprises includes the men’s line Ecko Unltd.; the G-Unit Clothing Co., which produces a men’s line for the rap group G-Unit; Zoo York, a line of skate- boards and skate-influenced clothing and accessories; Femme Arsenal, an upscale line of women’s clothing, accessories, and cosmetics; the junior label Ecko Red (produced under license), and Marc Ecko, a premium collection of men’s clothing and accessories. It also plans to launch a junior line for G-Unit for fall. The company also publishes Complex magazine, a young men’s consumer magazine with a rate base of 315,000. Ecko Unltd. products are available in more than Signingwith Ecko [Unltd.], for me, it’s a no-brainer. 5,000 stores domestically and in more than 45 countries internationally. Ecko Unltd. runs more than 25 of its own retail stores across the country. “They know quality, they are young and hip and This deal is just the latest move in the celebrity-as-designer craze, which seems to gain a new entrant every week. The JLo by Jennifer Lopez brand is expected to bring Marc [Ecko] gets it. in $375 million in retail sales by year’s end, Sean “P. Diddy” Combs’ Sean John is a ” $350 million company aiming for a major rollout of its own stores beginning this fall — Eve and Rocawear, which is run by Damon Dash and rapper Jay-Z, is a $500 million brand. Missy Elliot signed a deal with Adidas last month for her own line, which company year. For the three months ended Nov. 29, Innovo posted a loss of $5.8 million, or 27 executives predicted would reach sales in the multimillions in the first year at retail. cents a diluted share, compared with earnings of $41,000, in the year-ago quarter. Then there’s the new Beyoncé line, which will launch next year. Costs of goods sold jumped $28.6 million, reaching $37.9 million, or 93.5 percent of “I am sure Beyoncé’s line will be great, but who knows — I haven’t seen anything sales. Comparatively, the company recorded cost of goods sold of $6.3 million, or 66.3 yet,” Eve said. “For me, now, this just means that there are more reasons for us to percent of sales, in the year-ago quarter. make sure our product is as great as it can be.” Further complicating matters was an unexpected Fetish and Shago inventory ex- While some of the celebrity fashion lines continue to build momentum, even cess at the year’s end. According to Jay Furrow, Innovo’s president, the company was Ottimo admits the business isn’t one to enter into lightly. unable to sell the excess at full price, which ended up as a writedown of $4.3 million. “The celebrity business is a tough one to get into,” Ottimo said. “You can’t just sign Still, Fetish and Shago spurred Innovo’s sales to triple-digit growth, with a 294 anyone, but when the celebrity you do sign is hot, you have to be ready to produce a percent jump in the fourth quarter to $37.3 million from $9.5 million in the year-ago large volume.” quarter. Innovo is coming off a rough fourth quarter. The cost of launching two major For the year, losses mounted to $8.3 million, or 49 cents a share, against earnings of brands, Fetish and Shago, pushed the company into the red for the quarter and the $572,000, or 4 cents, the previous year. Sales rose 180.8 percent to $83.2 million.

Cipriani 42nd Street also honored architect Meier, industrial designer James Dyson, interior designer Mariette Himes Gomez, textile entrepreneur Stephanie Odegard and Charleston, S.C., Fashion Scoops mayor Joseph P. Riley.

WEDDING BELLS: Europe’s tabloids are buzzing in anticipation BURBERRY’S BIG DAY: Burberry will bring a bit of Britain to New over the union this Saturday of Spain’s Crown Prince Felipe to York Wednesday at a lunch at Cipriani at 42nd Street for 650 Letizia Ortiz Rocasolano, a divorced newscaster. While details of people to benefit The Lying-In Hospital, New York Presbyterian Rocasolano’s gown remain a state secret, it’s rumored to have a Hospital. There will be a Burberry fashion show, and chief modest neckline and long sleeves. The second-time bride is executive Rose Marie Bravo will host a table full of major British also (gasp!) expected to wear white. And who was names, including Princess Michael of Kent (who’s spending so commissioned to make the dress? Barcelona couturier Manuel much time in New York lately it may as well be her second Pertegaz, who is 87. Meanwhile, another obscure European got home), her daughter Gabriella Windsor, Lynn Forester de his day in the sun at Danish Crown Prince Frederik’s wedding to Rothschild, Rufus and Sally Albemarle and Sophie Dahl. Mary Donaldson. Frederik’s Australian spouse was outfitted by Denmark’s Uffe Frank, a former Valentino apprentice. But the BITTER GROUNDS: Vogue’s Sally Singer introduced the film “The gaggle of high-profile guests didn’t follow suit. Princesses Bitter Tears of Petra von Kant” at a Grand Classics With Style Maxima d’Orange of Holland, Mette-Marit of Norway, Alexandra screening with Marc Jacobs at Soho House this week by Wittgenstein and Marie-Chantal of Greece were all dressed by Andy and pointing out that she’d personally like to obtain many of the Valentino himself. Kate Spade looks in the film. “Although Marc is a lot like Petra von Kant — they both like A NEW FIELD: Junior apparel and footwear company Candie’s résumé. But don’t think it’s literal. On Thursday, the luxury for day, and both like to mix — feathers and patterns, a Inc. has entered into an agreement with stylist Patricia Field accessories designer, who has recently added tabletop, crystal, jeweled bodice with a floral ribbon — I have never seen Marc to design a limited edition collection of apparel, footwear flatware and bedding, was honored for being a tastemaker at direct his design assistants from a bed in his atelier, and he has and accessories under the Candie’s label. The collection, House Beautiful and Chrysler’s fifth annual Giants of Design never promised a model status in exchange for sex, but he can Vintage Candie’s by Patricia Field, will debut in spring 2005. gala. “I am beside myself to be named a ‘Giant of Design’, but I speak more on that front.” certainly feel small compared to the likes of Richard Meier and His response? “I assure you I am nothing like Petra von WINNING SPADE: Kate Spade can now add “giant” to her the other honorees,” quipped Spade. The black-tie affair at Kant.” 6 WWD, MONDAY, MAY 17, 2004

▲ Clockwise from top: Caylari’s rabbit-fur and leather purse; Chan Luu’s rabbit-fur scarf at Fragments; Elliott Lucca’s leather and rabbit-fur bag; Anthony Luciano’s teak, Woodland mink and leather bag. Babes NEW YORK — Often, just a touch of fur does the trick. Hats, bags, scarves and muffs are showing up in rabbit, mink, raccoon and, occasionally, a good fake.

From left: Kokin’s raccoon- fur and lamb-suede-trim hat; Mascharka jacket and pants; BCBG sweater. Jocelyn’s rabbit-fur scarf; Perry Ellis’ fake leopard-fur muff; FRX Jeans jacket; T-shirt and pants from St. Grace. WWD, MONDAY, MAY 17, 2004 7

Jennifer Scott’s leather, mink and metal hardware bag; Splash’s quartz and rhinestone watch with mink band. Borbonese jacket; Generra pants.

Oscar de la Renta’s fur and cabochon-jewel bag; suede boots with shearling lining from Marc by Marc Jacobs; St. Grace pants; Solow jacket. TRICOMI; PHOTO ASSISTANT: ARTHUR KALIGOS; FASHION ASSISTANT: BERTHA MORALES; STYLED BY ROXANNE ROBINSON-ESCRIOUT STYLED BY MORALES; BERTHA ASSISTANT: KALIGOS; FASHION ARTHUR TRICOMI; PHOTO ASSISTANT:

Zac Posen’s deer riding hat; Borbonese’s rabbit-fur and leather-trimleather-trim bag.bag. Jacket from BCBG Max Azria Collection; sweater from BCBG Max Azria; Chaiken jeans. PHOTOS BY KYLE ERICKSEN; MODELS: PUJA B. AND REMINGTON PLATT/SUPREME; MAKEUP BY ROANNA, HAIR BY DENNIS GOTOULOS, BOTH AT WARREN BOTH AT DENNIS GOTOULOS, ROANNA, HAIR BY MAKEUP BY PLATT/SUPREME; ERICKSEN; MODELS: PUJA B. AND REMINGTON KYLE PHOTOS BY 8 WWD, MONDAY, MAY 17, 2004 Obituary Stanley Harris Feldberg, 79 Comptoir des Cotonniers NEW YORK — Stanley Harris year Feldberg was named presi- rupting his education to enlist Feldberg, an innovative mer- dent, a role he held until 1978. in the Army Air Force during Creates First Fragrances chant who for more than two In Feldberg’s lifetime the World War II. decades led the company that firm, based in Framingham, Feldberg also served as presi- PARIS — A French sportswear Oriental, marries notes of dried went on to become discount Mass. and now known as TJX, dent of Beth Israel Hospital, a firm is bringing fashion and fra- fruits with bitter orange. Rose is giant TJX Cos., died April 24 in grew to include T.J. Maxx, trustee of Brandeis University and grance closer together — literally. an aromatic floral with notes of Charleston, S.C. He was 79. Marshalls, HomeGoods, A.J. the Dartmouth-Hitchcock Medical Comptoir des Cotonniers’ laurel and grapefruit. The cause was prostate can- Wright and Bob’s Stores in the Center, as well as chairman of the first fragrances can be toted While the scents target women, cer, said his wife, Theodora U.S., as well as Winners and Board of Trustees of the Storm like an accessory thanks to the Aron noted that Noir and Blanc Lehrer Feldberg. HomeSense stores in Canada Eye Institute of the Medical wrist strap at- could be worn Feldberg joined his family’s and T.K. Maxx stores in Europe. University of South Carolina. tached to each by both sexes. company, Bell Hosiery Stores, in He retired from his last In addition to his wife, bottle’s leath- Each eau de 1949. In 1956, the company was posts, as a director of TJX and Feldberg is survived by his erette sheath. BEAUTY BEAT parfum sells for reorganized as a chain of dis- BJ’s Wholesale Club, in 1996. daughter Margery Feldberg, son “They’re $46.50, or 39 count department stores and Feldberg graduated from Mark, sister Barbara Stern, and wearable items,” said Olivier euros at current exchange rates, took on the Zayre name. That Dartmouth in 1946 after inter- four grandchildren. Aron, president of Rosae, the for a 50-ml. spray. marketing consultancy firm that — Brid Costello developed the scents with Comp- toir des Cotonniers. Called Comptoir des Coton- Polo Europe Taps Two Executives niers Rose, Blanc and Noir, the Mugler’s BMen to Hit U.S. fragrances will bow this month in NEW YORK — Thierry Mugler LONDON — Polo Ralph Lauren Polo acquired PRL in July 2001. European markets, Polo said. added a spritz of intrigue to the Europe has named two Italian Carra will report to Brian “Fabio is a seasoned brand-mar- U.S. press launch of his newest luxury goods managers to help Duffy, president and chief operat- keting and -development profes- scent, BMen. run its European operations. ing officer of Polo in Europe. sional with extensive internation- The event was held amid dim, Alessandra Carra has been Carra was formerly worldwide al experience and a strong back- underground surroundings at The named general manager of Polo’s marketing, retail and sales direc- ground in both fast-moving con- Vault in Manhattan’s Wall Street Italian manufacturing division tor of Valentino. Prior to that, she sumer goods and the luxury indus- neighborhood last week. Behind and senior vice president, wo- was a manager at Levi Strauss try,” Duffy said in the statement. the massive vault door, a video men’s wear, Europe. Based in and Dockers, based in Italy. Mancone was formerly inter- screen showed computer anima- Milan, she will be responsible for Polo also has named Fabio national general manager, Gior- tion of an imaginary comic book the Italian wholesale market and Mancone as senior vice presi- gio Armani fragrances and cos- character that accompanies developing Polo Ralph Lauren’s dent, marketing, a new position. metics, at the L’Oréal luxury prod- BMen — inspired by Mugler’s in- women’s wear lines in Europe. Mancone, who will be based ucts division in Paris, where he terest in comic book superheroes, She will replace Alberto Lavia, in Geneva, also will report to was responsible for worldwide as previously noted. Along with who is currently chairman of Duffy. He will be responsible for brand strategy and business de- Mugler, who shied from cameras, Polo’s Italian manufacturing divi- country-specific marketing, com- velopment. He also has worked as Vera Strubi, president of Thierry sion, PRL Fashions of Europe. He munication and retail programs, a manager at Kraft and Unilever. Mugler Parfums Worldwide, ap- will step down in October, ensur- as well as reinforcing Polo’s lux- Both Carra and Mancone will peared at the event. Also there ing a smooth transition takes ury positioning and supporting join the company June 1. place, Polo said in a statement. the brand’s growth in strategic — Samantha Conti Comptoir des Cotonniers’ Blanc, Benjamin Noir and Rose scents. Gillikin Comptoir des Cotonniers’ 160 French stores and corners. A rollout to other selective channels in France is planned for 2005. “Our key goal is to reach the brand’s [loyal] customers first,” said Aron, who noted the scents will be introduced in other markets in tandem with the clothing Why brand’s international expansion. Aron, whose company also conducts on-the-street fragrance testing, said the Comptoir des were Benjamin Gillikin, presi- walk Cotonniers scents took inspira- dent of the firm’s North American tion from niche and high-end lux- operations, and Christian Cour- ury beauty brands. From niche tin, president and chief executive brands, for example, came the of Groupe Clarins, which owns when idea of developing a range of fra- Thierry Mugler Parfums. grances and initially restricting U.S. distribution plans for distribution to the brand’s own BMen call for a Sept. 17 launch you can doors, he said. From high-end at Nordstrom. Shortly thereafter, brands came touches that add to the scent will hit Blooming- the perceived quality of the prod- dale’s. Then, in October, BMen ucts, such as heavy glass caps and will reach Mugler’s full fra- fly? gift-box-like outer packaging. grance distribution network of Aron declined to discuss num- 420 doors in the U.S., including bers. However, industry sources Saks Fifth Avenue and Neiman estimate the Comptoir des Marcus. Industry sources esti- Cotonniers fragrances could ring mated BMen could generate first up $2.4 million in sales in their year-retail sales of $2.5 million. first year in France. According to — Matthew W. Evans The news online at 12:01am EDT those sources, sales could double Fast access to the in their second year on counter 6 continents, 11 bureaus, 203 in France and reach more than news, people and reporters for unmatched coverage $7 million in their third year. Revlon Reverses Course events impacting Advertising for the scents NEW YORK — Citing “unfavor- Search the previous five issues of WWD online broke mid-April in French maga- able market conditions,” Revlon the industry 24/7 access on your desktop, anytime, anywhere zines. As is traditional for the Consumer Products Corp., a brand, the single- and double- Revlon subsidiary, has decided worldwide. page spreads feature a portrait not to proceed with previously of a mother with her daughters. announced refinancing activi- One daughter wears a bottle of ties. The company had issued scent on her wrist. tender offers on three classes of The juices, concocted by Mane outstanding senior secured notes perfumers, were conceived to be due between 2005 and 2006. WWD easily understood by consumers Those who had already accepted Go to .com who are often turned off by fra- the offer will have their notes re- grances that don’t have easily rec- turned to them. Adverse market first. insider. authoritative. global. ognizable ingredients, Aron said. conditions also steered the com- Blanc’s citrus juice was in- pany’s decision to put off the of- spired by a mojito cocktail and is fering of new senior notes as well a combination of cedar and as new credit facilities. crushed mint notes. Noir, an — Ross Tucker THETHE WWD WWD BUSINESS REVIEW

THE RETAILERS’ DAILY NEWSPAPER MAY 17, 2004

STAYING AFLOAT Bailing or Smooth Sailing?

ubble, bubble, toil and trou- To be sure, U.S. consumers have a lot to think about before handing ble. How does America’s labor out their hard-earned dollars. In the end, it really is all about jobs, and garden grow? of course, income. The first line may be from a The jobs picture looks good, at least for now. U.S. payrolls were up witch’s brew in Act IV of 288,000 in April following a March report of gains of 308,000. The Shakespeare’s “Macbeth,” March report has since been revised upward to 337,000. But now while the second is a variation there’s more talk about layoffs, with Winn Dixie and MCI certainties at of an old nursery rhyme, but 10,000 and 7,500 each, respectively. There are also rumblings that both ditties characterize the maybe the jobs report isn’t reflective of what’s really going on after all. changes that are ongoing with- The concern is that the jobs that are created are lower-paying in compar- in the U.S. jobs picture. ison with the jobs that were lost. Americans are working So where do we go from here? amid a backdrop of a potential Carl Steidtmann, Deloitte Research’s chief economist, said job housing bubble in certain key growth in the last four months has been fairly strong, particularly in an markets. Meanwhile, the stock economic environment where businesses had a lot of excess capacity. market is back on course for a “There was a lot of excess capacity in terms of people. Companies series of wild roller-coaster have been loathe to lay off highly skilled people knowing that they rides while it awaits an expect- would have to hire them back. From what I see, the job growth we’re ed interest rate hike by the seeing is very much sustainable. What is driving it is profit growth. Federal Reserve this summer. Once you start seeing corporate profitability, then it follows that busi- On top of those concerns, nesses will begin to feel comfortable hiring people. Once the job market there’s more trouble overseas such as the war on terror and the war in begins to show some forward momentum, it is hard for it to be derailed. Iraq, worry about the price of oil and fear that inflation is looking to The momentum builds on itself, developing purchasing power [for make a comeback as well as uncertainties in an election year and the businesses] and stimulating consumer spending,” said the economist. B{ issue of outsourcing. Regarding outsourcing, the latest political and industry catchword, While Americans were optimistic in April, the Conference Board, it’s not anything new. Rather, the current incarnation is more about U.S. which tracks consumer confidence, raised a note of caution in last firms purchasing services overseas. month’s report. Buried at the end of it’s release, in the last sentence, was “What makes it different is that 30 years ago, the people who were a notation that “consumers anticipating an increase in their incomes de- being displaced were less educated. The folks who are displaced now clined to 17 percent [in April] from 18 percent” in March. CONTINUED ON PAGE 12 BY VICKI M. YOUNG COVER STORY { FASHION’S WORKING CONCERNS RETAILING’S RECENT BOOM IS BEING THREATENED BY MARKET TURMOIL — FROM JOBS TO OIL PRICES.

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© 2003 FedEx. See fedex.com for terms of shipping. Package content information available if provided by shipper. most direct correlation.” She expects that as the next wave of outsourcing continues, FASHION’S WORKING CONCERNS design jobs would still stay in the U.S., along with sales jobs. CONTINUED FROM PAGE 10 According to Maxfield, “Apparel and retail jobs have been Production would likely be split with some jobs here and others are more articulate. In the long run, it is a very positive develop- going outside of the country for years, so I don’t think that the going overseas. ment because it is another factor that will drive lower costs for latest round of outsourcing affects the industry as abruptly as it “Our industry has faced highs and lows in terms of employ- all businesses in a competitive market place,” said Steidtmann. does in other sectors. Even with all the production jobs going ment, but it hasn’t shut down. Work by pattern makers and sam- Anne Maxfield, president of Project Solvers, an apparel and overseas, what we’ve noticed is the creation of different employ- ple makers were all done here at one point, but it is hard to say retail industry search firm, also believes outsourcing has provid- ment opportunities here. While we’ve lost some lower- and how much would have gone over to the Web anyway. In the end, ed some benefits to the apparel and retail industry that in turn medium-paying jobs, we’ve also lost sweatshop jobs and gained what you see is the garment industry still thriving. In addition, have trickled down to the consumer. good middle-class jobs. Designers with technological skills is the for all the work that is done overseas, consumers now have the WHILE WE’VE LOST SOME LOWER- AND MEDIUM-PAYING JOBS, WE’VE ALSO LOST SWEATSHOP JOBS AND GAINED GOOD MIDDLE-CLASS JOBS. —ANNE MAXFIELD, PROJECT SOLVERS

12 MONDAY, MAY 17, 2004 13 MONDAY, MAY 17, 2004 opportunity to buy better product in terms of fashion content “This is a structural change where everyone is trying to keep Bernard Sands, the problem for many consumers who have and quality at different price points,” she concluded. costs down and wring every bit of efficiency out of every sec- jobs is the wage market. “Wages are not keeping up with in- Of course, there have been questions raised about tor. On the one hand, the consumer gains because prices are flation,” he said. whether the changes in the job market were a correction after cheaper, but also loses on the other hand because there are no Real average weekly earnings climbed 0.2 percent in all those boom years of the late 1990s or whether the country blue collar manufacturing jobs left.” April from March, according to the Bureau of Labor is undergoing a structural economic change that is impacting For D’Loren, one solution is for the country to get better Statistics. Year over year, average weekly earnings climbed America’s employment outlook. at training workers in ways that allow them to be more cre- 2.5 percent. The bureau also reported rising producer prices. Government data shows substantial growth in the num- ative. Also key is making sure employees improve their tech- Finished consumer goods rose 1.4 percent in April while ber of jobs. Since 1990, the employment level of all U.S. work- nology skills to gain new efficiencies. dairy prices rose 10.4 percent and crude materials increased ers, 16 years and older, is up 16.1 percent, according to the “Sophisticated, high-end technological skills are still the 3 percent. In turn, the consumer price index jumped 0.2 per- Department of Labor. domain of the U.S. Competitively, the focus now is on cheap- cent in April. Steidtmann believes the transformation in the jobs pic- er labor costs,” he said. “There is nothing that helps consumer keep up with the ture reflects a “structural change in terms of the whole “On the jobs picture, it’s a matter of reorienting people cost of housing, or the higher cost of repairing and moderniz- process of globalization, going from manufacturing into serv- to an emphasis on small business services and educating ing homes. Consumer savings is not at the level where it was ices. It is affecting the U.S., and is affecting everything every- people to be prepared for technology-related jobs,” before. The consumer is carrying too much debt. It is very where else.” D’Loren advised. easy for consumers to get credit, whether it be a mortgage Robert D’Loren, president and chief executive officer of In the meantime, workers in the U.S. may have to face an- loan or other form of credit. Credit is now viewed [by em- UCC Capital Corp., a firm focused on corporate whole-com- other reality, one defined by two words: Wage stagnation. ployers] as a form of alternative compensation because they pany securitizations backed by intellectual property, said, According Richard Hastings, credit economist at know that credit is in the system,” Hastings said. ■

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Jim Hogan · Norwalk, CT · 203-956-4592 Stuart Armstrong · Managing Director Daniel Williams · New York, NY · 212-309-8779 Lori Potter · Charlotte, NC · 704-992-5444 Norwalk, CT · 203-956-4085 Kimberly Morse · Pleasanton, CA · 925-730-6464 Stephen Metivier · Norwalk, CT · 203-956-4596 Matt Christensen · San Francisco, CA · 925-730-6425 Pamela Rashid · Chicago, IL · 312-441-7763 © 2004 GE Corporate Financial Services, Inc. All rights reserved. 14 THE WWD BUSINESS

MONDAY, MAY 17, 2004 MAY MONDAY, NOUVEAU RICHE II BY VICK I M. YOUNG SPENDING ON THE NEW LUXURY, WHICH EMBRACES CHOCOLATES AND COFFEE AS MUCH AS DIAMONDS AND FURS, RACES AHEAD. BUT IS THE SPREE’S TIME RUNNING OUT?

elcome to the new Nor will it be limited to consumers Over the past few years, per- banker and director of the con- Index was slightly lower at 97.8 nouveau riche. with household incomes above haps since Sept. 11, the concept of sumer products group at Houlihan from January’s baseline of 100, As a result, the lux- $200,000. what is luxury has expanded along Lokey Howard & Zukin, ob- showing a slight dip in consump- ury sector is poised to The next wave of luxury will be with who qualifies as affluent. served, “People like to spend, and tion during the quarter. The 650 become an even more fueled by gourmet coffee and To day’s consumers of high-end they like to spend on themselves.” upper-income households sur- significant player as it chocolate as well as diamonds and goods don’t hesitate to spend pre- To b e s u r e , it used to be that lux- veyed had incomes over $75,000. W goes through an evolu- designer dresses, some of which mium dollars for what makes them ury was an appellation reserved for Danziger’s firm separates out tionary step where the high-end are bought by consumers with feel good, whether it is an experi- the traditional high-end brand the luxury market into three de- segment is not limited to brands minimum annual incomes of ence or something tangible. names such as Armani, Dior and mographic categories: the super- such as Louis Vuitton or Gucci. $75,000. Ken Wasik, an investment Chanel. The profile of the luxury affluents, with annual incomes of consumer did not include one who at least $150,000, or about 5.6 had to worry about retirement plan- million households; affluents, at ning or living paycheck-to-paycheck. between $100,000 and $149,999, But times have changed. Today, or 10.1 million homes, and the luxury is no longer the sole domain near-affluents, those from of high-quality, pricey brand $75,000 to $99,999, or 12.2 mil- names. The new nouveau riche are lion households. attracted to brands such as Godiva She noted that jewelers such as Chocolatiers as they are to Sub- Cartier and Bailey Banks & Biddle Zero appliances and old-guard both target the luxury market. The brands such as Tiffany & Co. as the difference is that a woman with concept of what is luxury expands $150,000 in income would likely to a wider spending audience. shop at Cartier, while her near-af- The new luxury customer is fluent counterpart would head to likely to gobble up Godiva choco- the convenient mall locations of lates and wash it down with a venti Bailey Banks & Biddle. WE OFTEN ASSOCIATE QUALITY 7%6%!$$%$!'2%!4.%7&%!452%4/ WITH EXPENSIVE, BUT IT CAN BE /523%26)#%3)43#!,,%$4(%7%34#/!34 ASENSUAL EXPERIENCE SUCH AS A MASSAGE, WONDERFUL 2OSENTHAL2OSENTHAL )NCEXPANDSTO,OS!NGELES WITHOUR UNIQUE BLEND OF lNANCIAL SERVICES AND INDEPENDENT SPIRIT DINNER, TRAVEL, A TREAT OR !FTERYEARSOFSUCCESSIN.EW9ORK WEREOPENINGANEWOFFICEIN SOMETHING VERY SPECIAL YOU ,!TOBETTERSERVEOUR7EST#OASTCLIENTS)NANUNCERTAINFINANCIAL DO FOR YOURSELF. CLIMATE WHENCONSOLIDATIONHASAFFECTEDSOMANYFACTORINGCOMPANIES —PAMDANZIGER, 2OSENTHAL2OSENTHAL )NCOFFERSTHESTABILITYOFANINDEPENDENT UNITY MARKETING ONLINE FAMILYFIRM7EAREKNOWNFOROURRESOURCESANDASINGULARLACKOF coffee from Starbucks before shop- One myth that Unity Market- BUREAUCRACY4HERESULTFASTERDECISIONS LESSREDTAPE)FYOUREIN ping for a $2,000 brooch at Tiffany. ing’s studies debunked is the idea “We often associate quality that luxury consumers are spend- BUSINESS ANYWHERE ON THE GLOBE LET US SHOW YOU THE DIFFERENCE with expensive, but [it] can be a thrifts. Luxury consumers, in gen- sensual experience [such as a] mas- eral, are not willing to put their WECANMAKE sage, wonderful dinner, travel, a lifestyle at risk, so they end up sav- treat [or] something very special ing enough to ensure preservation you do for yourself,” said Pam of their standard of living. Danziger, president of Unity One reason why the luxury Marketing Online, in a research re- market is expected to maintain a port based on focus groups. steady, bouncy pace is the growing 2OSENTHAL2OSENTHAL )NC Danziger calls the new genera- number of affluent Baby Boomer .%79/2+/&&)#%"ROADWAY .EW9ORK .9 tion of luxury “masstige,” for mass households, a trend that will con- ,/3!.'%,%3/&&)#%4HE7ARNER#ENTER /XNARD3TREET 3UITE7OODLAND(ILLS #! prestige. tinue to drive luxury sales. WWWROSENTHALINCCOMEMAILINFO ROSENFACTCOM Unity Marketing’s March 2004 Danziger expects the market to Luxury Goods Consumption continue its growth cycle until CLOCK: JOSE LUIS PELAEZ/CORBIS; SILVER DOLLAR: CORBIS DOLLAR: PELAEZ/CORBIS; SILVER CLOCK: JOSE LUIS 15 MONDAY, MAY 17, 2004

SHORT TAKES

WELLS FARGO CENTURY INC., the largest bank-owned fac- estimate of $1.26. However, as much as he’d like to, A.G last week. Weinswig said chief financial officer Jim Skinner’s toring company in the U.S., added to its ranks in response to Edwards & Sons analyst Robert Buchanan couldn’t bring him- mantra of “a good real estate deal is not grounds enough for ex- meeting the demands of a growing business. In New York, Peter self to upgrade the stock from “hold.” “We love these guys,” pansion” persuaded her that Neiman is “wisely committed to its Pugliese has come over from GMAC Commercial Finance to wrote Buchanan in a note, “but still can’t get past anticipated prudent real estate strategy, which is designed to grow square bring his experience as a business development officer, while earnings-per-share growth deceleration. As big a fan as we are of footage only in key locations where store productivity can be Thomas Dowling joined the firm from GE Commercial Credit Pacific Sunwear, it’s our experience that specialty apparel maintained, improved or created to meet or exceed company av- as a senior account executive. Meanwhile, Wells Fargo’s Los growth stocks tend to act best ahead of accelerating EPS erages.” When it comes to SAME-STORE SALES, it’s always Angeles office has brought on board Jason Carmona, formerly growth.” But Buchanan held no such reservations for something. Going into April, analysts were fearful that the calen- of Capital Factors, as a member of the client management AEROPOSTALE INC. After increasing his EPS estimate 12 dar shift of Easter back into March would cannibalize the cru- group, and Robert Noto, most recently at HSBC Business times over the past six months, Buchanan raised his 12- to 18- elest month’s results. So what’s the bugaboo for May? More of Credit, as a customer credit specialist. On the specialty retail month price objective to $42 from $34. Luxury looks good. the same: “While favorable weather should help, we note that a front, after reporting an 87.7 percent vault in first-quarter earn- Smith Barney analyst Deborah Weinswig was suitably impressed calendar shift in the Memorial Day weekend could negatively im- ings last week, PACIFIC SUNWEAR OF CALIFORNIA INC. with NEIMAN MARCUS GROUP INC.’s presentation at a pact May results,” wrote SG Cowen analyst Lauren Cooks raised its full-year guidance to $1.31 a share from the consensus company-sponsored small- and midcap conference in Las Vegas Levitan, even as the ink was still drying on the April numbers.

2010, boosted by the 78 million Boomers between ages 40 and 58. Indeed, luxury goods sales in the

U.S. are likely to continue for some GO•UP time, according to a research report by J.P. Morgan analysts Melanie Flouquet and David Wedick. The analysts concluded that the spending power of U.S. consumers in the upper-income brackets has benefited greatly from tax cuts. The group also has higher educational levels than those in the lower-income pools, which correspond to a lower rate of unemployment. Even against the specter of rising interest rates, the analysts noted that most upper-income consumers wouldn’t be too affected, since they’ve locked in their mortgages at low, fixed interest rates. In addition, they pointed out that the U.S., which represents close to 50 percent of diamond jewelry sales worldwide, is a geographic region that’s still underrepresented for some European firms. Bear Stearns analyst Dana I demand. Te lsey, in a May 10 report preview- ing retail earnings, wrote that luxury goods firms have “started to re- flect the improving global econom- ics outlook, which assumes enthu- siastic news throughout [the first half of 2004] against an easy SARS- and Iraqi war-laden comparison with last year.” She wrote that most brands are claiming “minute consumer resistance to inflation,” with Tiffany not- ing resilience for jewelry over the $50,000 price point and Coach “successfully raising prices by 7 to 10 percent in spite of its accessible positioning.” Last week, Tiffany & Co. posted double-digit percent increases in income and sales for the first quarter, boosted by a 30 percent gain in sales at its New York flagship. For the three months ended April 30, the retailer said income rose 12.4 percent to $40.3 million from $35.9 million in the same year-ago quarter. Sales advanced 15.4 percent to I make a value choice. $457 million from $395.8 million. I prefer garments made using U.S. retail sales climbed 23 percent to $213.7 million, while com- fabrics and yarns labelled parable-store sales rose 20 percent. "BIELLA The Art of Excellence." A 30 percent jump at Tiffany’s The mark of excellence which embodies the best New York flagship on Fifth Avenue of style combined with attentiveness to health and wellbeing. www.biellatheartofexcellence.com boosted the comp gain. Chosen by: Lanificio Ermenegildo Zegna & Figli - Botto Giuseppe & Figli - Tonella - Tintoria Finissaggio 2000 - Lanificio Fratelli Cerruti International retail sales grew 12 Ing. Loro Piana & C. - Fratelli Piacenza - Vitale Barberis Canonico - Lanificio Fratelli Garlanda - Filatura Marchi Giovanni Pettinatura Italiana - Tintoria di Trivero - Filatura di Trivero - Filatura di Pollone - Lanificio di Lessona - Botto Poala - Italfil percent to $184.7 million. ■ Lanificio Luigi Botto - Filatura di Crosa - Gartex - Lanificio Tessilstrona - Lanificio Fratelli Fila - Biella Vertical Textile - Quality Biella. 16 THE WWD BUSINESS

MONDAY, MAY 17, 2004 MAY MONDAY, CASH MACHINES BY DAN BURROWS THE MORTGAGE REFINANCING BOOM IS OVER. SO WHAT DOES THAT MEAN FOR RETAILERS?

he economy has lost a net 1.8 million jobs since January But every refuge has its price. With the economy finally As Goldman Sachs analyst Matthew Fassler cautioned in 2001 and real wages have been stagnant, but you’d heating up, a hike in interest rates is almost certain, and is a a research note: “We expect contributions from mortgage re- never know it from the pace of household spending. real possibility as early as this summer. The specter of higher financings to consumer spending in 2004 to decline from Of course, that’s been good news for apparel retailers interest rates isn’t just playing havoc with apparel retailers’ high 2003 levels, given higher mortgage rates and flagging re- and wholesalers, and part of that growth has been due to and wholesalers’ share prices, it’s threatening their top and financing applications. Cash-out refinancing is only one lower taxes, but a massive chunk has come from an in- bottom lines by turning off the spigot of consumer cash from component of our broader macroframework, but the de- T dustry far afield from fashion: mortgage refinancing. refinancings. clines in cash-outs do not help the consumer.” With interest rates at a 47-year low and house prices According to Britt Beemer, chairman and founder of Fassler warned the lack of support from cash-out refinanc- skyrocketing, homeowners have put more than $1.6 trillion America’s Research Group, the average consumer who refi- ings and fiscal stimulus from the federal government will act in their pockets by refinancing over the last five years, giving nanced his mortgage gained 12 to 14 percent in additional as a drag on consumer spending starting this summer. an enormous boost to the economy. In the words of wonky spending money. Some of that went for home improvement, “The second-half 2004 outlook is more ominous,” said Washington Monthly magazine, Americans have been using to pay off credit cards and for college tuition, but a great deal Fassler, “as fiscal restraint [no more tax checks in August] takes their homes like ATM machines. also went to consumer spending. over and cash-out refinancings cycle very tough comparisons.”

PROFITABLE RETAILER RESULTS ( TRAILING FOUR QUARTERS) Company Net Income Prior period earnings % Change* Revenues Prior period revenues % Change* TIMES AT Wal-Mart Stores Inc. 9,054.0 7,955.0 13.8 258,681.0 231,577.0 11.7 Target Corp. 1,841.0 1,654.0 11.3 48,163.0 43,917.0 9.7 Sears, Roebuck & Co. 2,366.0 1,458.0 62.3 40,038.0 41,209.0 (2.8) RETAIL J.C. Penney Co. Inc. (1) (928.0) 405.0 N/A 17,786.0 17,633.0 0.9 Gap Inc. 1,030.2 477.5 115.8 15,853.8 14,454.7 9.7 No wonder it’s been a jobless recovery. A look at retailers’ and wholesalers’ earn- Federated Department Stores Inc. 693.0 818.0 (15.3) 15,264.0 15,435.0 (1.1) ings and sales results for the trailing four quar- May Department Stores Co. 434.0 542.0 (19.9) 13,343.0 13,491.0 (1.1) ters offers a microcosm of business conditions as a whole. The good news is that profits are TJX Cos. Inc. 658.4 578.4 13.8 13,327.9 11,981.2 11.2 soaring. The bad news is that revenues are not. Kohl's Corp. 591.2 643.4 (8.1) 10,282.1 9,120.3 12.7 There is only one way to grow the bottom line faster than the top, and that’s by control- Limited Brands Inc. 716.8 501.7 42.9 8,934.1 8,444.7 5.8 ling costs. Since labor expenses account for Dillard's Inc. 9.3 (398.4) N/A 7,863.7 8,233.9 (4.5) nearly two-thirds of consolidated costs for all Nordstrom Inc. 242.8 90.2 169.2 6,491.7 5,975.1 8.6 U.S. business, it’s no surprise companies have been loath to hire. Saks Inc. 82.8 24.2 241.6 6,055.1 5,911.1 2.4 The disparity is most pronounced among Ross Stores Inc. 228.1 201.2 13.4 3,920.6 3,531.3 11.0 the top 25 retailers by revenue. Although special items have been included in the results, Neiman Marcus Group Inc. 163.7 113.3 44.5 3,304.6 3,031.6 9.0 the conclusions are inescapable. On average, ShopKo Stores Inc. 39.1 (144.8) N/A 3,184.1 3,240.2 (1.7) the group’s net income grew by nearly one- third, but average revenue ticked up by just 4.5 Burlington Coat Factory Warehouse Inc. 2,759.0 8,932.2 (69.1) 2,790.0 2,690.1 3.7 percent. Retail Ventures Inc. (4,446.0) (3,665.0) N/A 2,594.2 2,450.7 5.9 Saks Inc. was the standout here, as profits more than tripled while revenue advanced just Charming Shoppes Inc. 40.6 (2.8) N/A 2,285.7 2,412.4 (5.3) 2.4 percent. Gap Inc., Nordstrom Inc. and Abercrombie & Fitch Co. 205.1 194.9 5.2 1,707.8 1,595.8 7.0 Goody’s Family Clothing Inc. also defied income statement logic, boasting triple-digit Talbots Inc. 104.7 120.8 (13.3) 1,624.3 1,595.3 1.8 profit growth on revenue increases of less than Ann Taylor Stores Corp. 100.9 80.2 25.9 1,587.7 1,381.0 15.0 10 and even 5 percent. Those are the kinds of American Eagle Outﬁtters Inc. 60.0 88.7 (32.4) 1,520.0 1,463.1 3.9 results that make investors giddy and the un- employed grumble. Stein Mart Inc. 2.2 20.7 (89.4) 1,355.5 1,401.6 (3.3) Other notable profits gains were found at Goody’s Family Clothing Inc. 17.7 7.6 133.1 1,227.0 1,193.4 2.8 Sears, which shed its credit card business, and Limited Brands Inc., which has settled into de- AVERAGE CHANGE 32.3 4.5 livering consistent results. TOTAL 16,066.7 20,696.0 (22.4) 489,184.8 453,369.6 7.9 Some of the hardest hits to bottom lines for the trailing four quarters were experienced by department stores, a channel that has seen AS OF MAY 10. *PERCENT CHANGE FROM THE PRIOR FOUR-QUARTER PERIOD.(1) Excluding charges related to Eckerd, full-year earnings would have been $364 million. sales growth decelerate as specialty retailers Revenues reﬂect department store, catalogue and Internet sales. COMPANIES RANKED BY REVENUE. EARNINGS AND SALES IN THOUSANDS. PARENTHESES gain marketshare. ■ INDICATE NET LOSSES OR PERCENT DECLINES. RESULTS INCLUDE SPECIAL ITEMS AND CHARGES. CALCULATIONS BY WWD. SOURCE: COMPANY REPORTS. —D.B. 17 MONDAY, MAY 17, 2004

To put the drop-off in perspective, according to the Mortgage Bankers Association, refinancing this year is run- THE REFINANCING BUS HAS LEFT THE STATION. ning about 80 percent below its peak of $2.5 trillion in 2003, and the average interest rate on a 30-year mortgage is now IF YOU HAVEN’T REFINANCED BY NOW, CHANCES more than 6 percent. Shortly after the boom started in 2001, a ARE YOU’RE NOT GOING TO. 30-year mortgage could be had for just more than 4 percent. “The refinancing bus has left the station,” said Beemer. “If —BRIT BEEMER, AMERICA’S RESEARCH GROUP you haven’t refinanced by now, chances are you’re not going to spending, but they may also lead to higher costs. But the forecast need not be as gloomy as all that. Apparel unless you have a very high mortgage.” Te stifying before the Senate’s joint economic committee retailers and wholesalers can exert a great deal of influence That means fewer consumers are adding to overall spend- last month, Federal Reserve chairman Alan Greenspan said, over their top lines by keeping their focus on what they should ing by pulling cash out of their homes. In other words, that pie “If history is any guide, competitive pressures, at some point, do best: fashion. is about as big as it’s going to get. With the national savings will shift in favor of real hourly compensation at the expense As Lissa Baum, executive vice president at IDB Bank, rate already at a historical low of about 1.9 percent, apparel of corporate profits. That shift, coupled with further gains in pointed out, apparel sales have been woeful for much of this companies will need sustained employment and wage growth employment, should cause labor’s share of income to begin to period of rock-bottom interest rates. “The weakness in apparel in the economy to put increasing amounts of consumers’ cash rise toward historical norms.” wasn’t related to interest rates,” Baum argued. “It was related into their coffers. It is precisely that inflationary feedback cycle — higher to fashion. Interest rates were low and people didn’t buy. For While the most recent jobs data is encouraging, rising em- employment equals higher wages equals higher costs equals years, all that changed were the lengths and the seasons. There ployment and wages are a double-edged sword for apparel higher prices equals higher wages — that the Fed will try to has been a reemergence of fashion. and that has led to a need companies. Higher wages may lead to greater consumer forestall by raising interest rates. for women to update their wardrobes.” ■ VARIABLE

INTERESTS up Inc. With the Federal Reserve poised to raise interest rates before summer’s end, historical data suggests the impact on retail stocks is likely to be mixed. Mass retailers are in the best position to withstand a rate hike. And this time around, specialty retailers could fare better. According to an April 28 research report by the consumer group at Piper e see what you see” and the CIT logo are trademarks of Gro Jaffray, analysts Jeffrey Klinefelter and Neely Tamminga concluded that same- store sales and, subsequently, stock performance, should stay unaffected for specialty retailers up to a year after a rate increase. They attributed this to leaner inventories at retail. What’s also different this time around are improved fundamentals in sales per square foot and gross

margin rates. 2003 CIT Group Inc. is a registered trademark and “c it”, “W Among women’s specialty apparel © retailers, as well as those in the luxury business, the trend-line results mirrored the teen specialty retailers. Women’s retail stocks benefited from a strong economy from 1999 to 2000, but then showed some slack in 2001, following the Sept. 11 terrorist attacks in New York and Washington. On the mass merchant side, the retailers seemed insulated from changes in interest rates, according to the survey by the Piper Jaffray team. Klinefelter and fel- low analyst Ted Saunders concluded the nondiscretionary component of the mix of products sold by mass merchants buffered the impact of rate fluctuations. In short, it didn’t really matter what the rates were because personal care products and food are everyday items consumers need, regardless of the economic climate. An added advantage the mass merchants have is a consumer group covering a very broad cross section of the population, leaving them less reliant on any one demographic type or income level. A decade ago, Skechers started out with a bold new vision of footwear Shari Schwartzman Eberts, analyst at and a brilliant first step: choosing CIT as their lender. It was a relationship J.P. Morgan, concluded in her April 26 note: “According to our historical analysis, that grew as Skechers grew. Their size today: extra large. The fit with department stores and discount stores typ- CIT: still perfect. See how we can help you with financing, factoring ically underperform the [Standard & Poor 500 Index] when rates are rising, and and more at CIT.com or call (800) 248-3240. We see what you see. outperform when rates are declining.” Schwartzman Eberts concluded that, if the same trends continue, a higher growth stock such as Dollar General — J.P. Morgan’s favorite in the sector — may be the “safest” name in the broad- lines group. ■ —Vicki M. Young 18 THE WWD BUSINESS

MONDAY, MAY 17, 2004 MAY MONDAY, FACTORS ON CHINA BY ROS S TUCKER WEIGHING IN ON CHINA TRADE 2005. BUSINESS FORTUNES BOIL DOWN TO PRICE.

he elimination of quotas on China in tor production. 2005 means one thing for retailers: As to whether consumers will reap the benefits of lower prices. However, among factors, any reduction in production costs, in the form of companies that take on responsibility lower prices on the rack, some factors are skeptical. for a firm’s receivables for a fee, the full From a macroeconomic standpoint, said Stanley T impact of this change remains unclear. Officina, president of Sterling Factors, there is little For David Milberg, president of evidence to suggest drastic changes are in sight. “Our Milberg Factors, the elimination of quotas simply economy and consumerism is virtually unchanged means the continuation of an ongoing struggle be- after every one of these things,” said Officina. “Your tween retailer and manufacturer. kids are still gonna want a $120 pair of sneakers be- “Retailers are constantly pressuring manufactur- cause all the other kids have ’em. Nothing changes, ers to lower price,” said Milberg. Once quotas are lift- except the date.” Any cost reductions, said Officina, ed, continued Milberg, he expects retailers to contin- will be lost somewhere else in the supply chain. ue clamoring “to get as much of that benefit as possi- To m Pizzo, president and chief executive officer of ble, especially in the lower and middle market retail- We l ls Fargo Century, contends the disappearance of ers, where price is really important.” quotas will spur competitive pricing among manufac- Michael Stanley, executive vice president of turers, forcing retail prices to fall. “The consumer will Rosenthal & Rosenthal, also sees mass market retail- have more advantageous buying ability,” said Pizzo. ers reaping the greatest benefit. “I would say, for vol- However, according to Pizzo, some of these discounts ume merchandise, certainly price will go down,” said may already have been factored into current pricing. Stanley. “If you have luxury goods, you can Richard Hayne, chairman and presi- get a premium. But for discounters and dent of Urban Outfitters, agrees, but mass markets, there’s no question. he sees the fall in price as part of a We ’ re s e eing deflation right now, longer evolutionary cycle, and the quality of those goods rather than an occurrence trig- is the same or better.” gered by a single event. Expectations of price “I think over time you’re drops may be running too going to see what’s already high, said Mark Bien- been happening over the stock, executive vice presi- last 15 to 20 years, which is Success Comes in Stages dent of DCD Capital, who deflation in categories,” said believes retailers are look- Hayne. “If you average all re- Wells Fargo CenturySM ing for a reduction in pro- tail prices out for one particu- For more than 50 years, Century Business Credit Corporation built a reputation for innovative, flexible financing to help growing OVER TIME YOU’RE GOING TO SEE WHAT’S BEEN businesses seize today’s opportunities and achieve tomorrow’s goals. In 1999, we expanded our growth by becoming part of the HAPPENING OVER THE LAST 15 TO 20 YEARS, Wells Fargo family of companies. WHICH IS DEFLATION IN CATEGORIES. Today, as Wells Fargo Century, we combine our creative, —RICHARD HAYNE, URBAN OUTFITTERS entrepreneurial approach with the resources and financial strength of one of the nation’s most respected financial institutions. duction costs of between 10 and 15 percent. According lar item or group of items, absolutely it will become Our innovative credit solutions include: to Bienstock, much of that benefit may have already cheaper.” For denim pants in particular, Hayne be- been eaten up as factories, anticipating receiving larg- lieves there will be a noticeable price reduction. •Factoring •Letters of Credit er orders once quotas disappear, committed their re- Wo rk i ng to the naysayers’ benefit is the fact that •Accounts Receivable •Trade Finance sources to upgrading their technology and expanding even after Jan. 1, 2005, the U.S. will have the option of Management Services operations. unilaterally imposing quotas on certain categories for As for lower prices, “It’s wishful thinking,” for re- up to three years. Given that it is also an election year, Wells Fargo Century. The Next Stage® in your business. tailers and consumers alike, said Bienstock. “I think the reappearance of quotas seems a certainty. there might be a small adjustment, but I don’t think “I think it’s a real political issue,” said Milberg. www.wfcentury.com it’s going to be material.” “China has become such a dominant force, and The greatest change occurring, said Bienstock, there’s a lot of fear out there about what happens Los Angeles New York San Francisco can be found in how retailers are conducting their once the gloves come off.” (213) 443-6000 (212) 703-3500 (415) 222-8103 sourcing business. “A lot of retailers are buying offices Officina characterizes it as a melody that has yet to in these countries to monitor production,” said be filled in. “[Quotas] will be tinkered with as it pro- ©2004 Wells Fargo Century, Inc. All rights reserved. Bienstock, citing Target Corp. as an example. gresses,” said Officina. “As specific areas of our econ- In 1998, Target acquired Associated Merchandising omy are affected, lobbyists will have our political Corporation, a global sourcing specialist founded in leaders fine-tune the grand structure.” 1916 that now has more than 50 locations around the As Hayne points out, this tinkering creates diffi- world. According to Salomon Smith Barney analyst culties in operating a business, making long-term Deborah Weinswig, AMC has one of the most sophis- planning impossible. For Urban, Hayne plans to ticated networks of Asian factories of any mass retailer, gradually increase its dependence on China for sourc- allowing Target to chase down new products or quickly ing while maintaining its other sourcing locations. “As create private label versions of high-end products. late in the game as possible we’ll be assigning where This proximity to the factories, said Bienstock, has we will actually commit to production,” said Hayne, ■

allowed retailers to better negotiate prices and moni- “and that will be based on our latest information.” CORBIS PHOTO BY 19 MONDAY, MAY 17, 2004

The current savings rate is dismal compared with what it was more than 20 years ago. The savings rate averaged in the 8 to 10 percent range throughout the Seventies, hitting a PIGGY BANK BROKE high of 12.5 percent during the second quarter of 1975, according to U.S. government data Savings? What’s that? Does anyone even remember? from the Bureau of Economic Analysis. The American mind-set in the past few years instead has been to “spend, spend, spend.” The rate fell during the late Eighties to 5.8 percent in the second quarter of 1987, but Simultaneously, consumers have taken on ever-higher debt loads, leaving little room for even then seesawed up and down before reaching 7.9 percent in the first quarter in 1989. It retirement planning — and a resulting national savings rate of nearly zero. then fell to 7.1 percent in the following quarter. However, the savings rate gradually fell There is some hint that the rate is now inching up slowly, albeit at a snail’s pace. More im- even further to 4.1 percent in the first quarter of 1994. While the rate climbed back up to portantly, the current rate is still substantially below the double-digit percentage rate aver- 5.7 percent in the first quarter of 1995, it sank down to 4.2 percent in the first quarter of ages during the Seventies. 1996. Americans saved even less as the years flew by, with the rate sinking to 1.7 percent in According to an April 30 research note by Maury Harris, chief economist at UBS, the the third quarter of 1999. The all-time low was in the fourth quarter of 2001, at a 1 percent current personal savings rate for March 2004 is 1.9 percent, flat compared with February. savings rate. Yet, that rate represents an improvement over December 2003, when the personal savings According to Richard Hastings, credit economist at Bernard Sands, consumers thought rate was an even lower 1.4 percent. According to Harris, the rate “remains below the average they were wealthy and didn’t need to save because of the so-called “wealth effect.” In short, of the last two years.” consumers counted on the go-go days of heady stock market highs to boost their investment accounts, which made them “wealthy.” Then, after the dot-com and tech bubble burst, they counted on the rising boom in the housing market to repair the damage to their NO MONEY IN THE BANK? bottom lines. NET SAVINGS OF HOUSEHOLDS AS A % OF GROSS NATIONAL INCOME “Many bought their houses with a lot of debt leverage, with the hope that housing prices would go up so they could sell it and take a profit,” he observed. Of course, now there’s talk that consumers with cash sitting on the sidelines in their bank accounts are starting to transfer that wealth back into the stock market. Hastings isn’t 12 so sure. “As far as consumer spending is concerned, all eyes are on the housing market. The stock 10 market fundamentals remain mixed, and savings has been low, in part because of wage stagnation. Wage growth is basically nonexistent. One thing is for sure: When the dam breaks, 8 when the Federal Reserve raises its overnight lending rate, you will see the housing market cool,” Hastings predicted.

6 He added that, in the Seventies, when the savings rate was higher, there also was more domestic production in America. The result was that higher wages were warranted because of higher consumer costs and rising interest rates. Hastings explained that the opposite oc- 4 curred in the last few years, when interest rates were lower and wages stagnated, which kept inflation low. 2 Of course, now there’s talk about an interest rate hike before the end of the summer. Employment figures also seem to be on the rise. 0 According to Harris in his research note, there is a possibility that “future upward revi- 1964 1974 1984 1994 2004 sions to payroll employment, which we believe has been understated, will lift the reported savings rate.” ■ SOURCE: BUREAU OF LABOR STATISTICS. —Vicki M. Young

Chargebacks. Markdowns. Guaranteed Margins. Quotas. Duties. Returns. Shortages. No Credit. Inventory Problems. We Understand.

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Accessories Report Vendors Pin Fall Hopes on Brooches

By Emily Holt NEW YORK — Thanks to a large presence in fall collections from Prada to Tuleh (and women finally having Green was a key color. enough chandelier earrings in their jewelry boxes), Here, a bag by Melanie Dizon. brooches are bound to be the ‘It’ accessory for fall. Whether jeweled, feathered, giant or demure, pins made their way onto retailers’ orders during the May accessories market here. With price being of little concern as quality of product won out over quantity of buy, retailers at the Accessorie Circuit and Accessories The Show PHOTOS BY JOHN AQUINO PHOTOS BY were also buying into fall’s other key trends: oversized bags, linear earrings and anything in green. Attendance fluctuated throughout the May 2-4 run. Buyer traffic was up 8 percent at the Circuit at the Show Piers, but down 4 percent at The Show at the Jacobs K. Javits Convention Center. Nonetheless, vendors at both shows said orders were up from this time last year. “Kelly green has been stronger than “We’re up 100 percent,” said Roxanne Assoulin, anything else,” Feifer said. “I think creative director of jewelry company Lee everyone’s looking for color, and they Angel, at Accessorie Circuit. “The also like the combination of tweed strongest [items] have been brooches, A slouchy and leopard.” big beads, and earrings, still.” bag from Tweeds were abundant, In the past, earrings accounted Kale. and frequently combined for 80 percent of sales at Lee with other materials, like Angel, Assoulin said, but that per- faux leopard and silks. centage is waning as pins gain Surprisingly, large leath- momentum. Pins are in, like er hobo bags were book- She pointed out that many these from Gerard ing better than the young women between the ages of Yosca, above, and structured styles one 15 and 35 have never bought a pin Roxanne Assoulin would expect to com- for themselves. “So to be on trend, for Lee Angel, left. plement the ladylike they have to buy one,” she said. Lee looks on the runway. Angel showed colorful jeweled antique- The big bag craze looking brooches as well as larger dramat- continued at The Show ic ones that are meant to be worn on the with brands such as back of a dress or the hip. Latico and Cleo & Patek re- But while smaller boutiques may just be catching porting that bestsellers were a large green tote and slouchy sling onto the brooch craze, large specialty stores had long ago finished bag, respectively. ordering pins from major suppliers. Instead, they were looking In jewelry, delicate multichain necklaces with green and ahead for jewelry trends that might begin taking shape for resort purple stones performed well at both shows. Designer or spring. Melissa Joy Manning noted this strayed from the past trend Sunny Diego, director of women’s accessories and fashion toward big, chunkier styles. “These you can layer,” she merchandising at Saks Fifth Avenue, hinted that while the said, to achieve a more dramatic look, “or just wear one glitzy, glamorous trend in jewelry isn’t going away, it’s not mov- and go minimalist.” ing forward either. “It’s all looking a little too [much],” she Jewelry designer Janna Conner, who had a booth at observed after making the rounds at Accessorie Circuit. The Show, said her gold business is picking up. Earrings Still, she admitted, “[Gerard] Yosca had some great Simple necklaces, remain the strongest component of her line, which in- mixed-media brooches for fashionistas who get mixing feath- such as this version by cludes cluster earrings with tiny cascading beads in a rain- ers and jewels.” Melissa Joy Manning, bow of colors. Yosca, as well as other jewelry designers like Alexis Bittar, were a trend. It was just that sort of trend that online retailer Allison were surprised that designs they thought were outlandish were Hale was looking for. “I loved [Conner’s] clustered drops,” checking well with buyers. “I had some huge eight-inch flower pins that said the Annapolis, Md.-based buyer for her six-month-old acces- when I designed them I thought, ‘I love them, I don’t care if anyone sories Web site, Allisonswishlist.com. “It’s all about the linear ear- buys them,’” Bittar said. “But they did.” ring with multidrops.” Retailers at the shows reported that their early spring business was Vendors said buyers had no price resistance across categories, be it strong. Most were placing fall orders but keeping an eye out for items to enliv- a $225 bag or a $220 fur trapper hat from Helen Kaminski, who also en their stores now. showed a new line of bags for fall. Diane Tkacz, owner of the Diane T. boutique in Brooklyn, said she had come to “I feel like people are really buying up, not like it was last year at this time,” Accessorie Circuit with an open mind and large open-to-buy. “Business is very said Dale Lindholm, president of the Pure Accessories showroom, which repre- good,” she said. “We’re doing really well with everything from apparel to shoes and sents handbag lines such as Kale and Dante Beatrix. Lindholm was at the Circuit accessories.” manning the booth at Kale for the Los Angeles-based sisters who own the label. Handbag designer Jana Feifer, who had a hit with initial bags last year, expanded Again, Kale’s large essential tote in colors such as deep blue, red, and even off-white her collection beyond monograms for fall. Key looks were an oversized slouch bag in were key sellers. “[Buyers are] upping what they did last year,” he said. “They’re not both denim and tweed and a shoulder bag with exterior pockets in green. flinching at $225 for a bag, where last year it would be, ‘No way.’”

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Innerwear Report New Names, Big Changes Lie Ahead

By Karyn Monget entrepreneurial-type ventures exploding JLo by Jennifer Lopez’s into the market. Some will be successful, NEW YORK — The shakeup hasn’t happened lavender bra and low-rise some will not. yet, but it’s already taking shape for spring 2005. briefs at Warnaco. “There’s no question there will be a fallout While the pace of the pint-sized May market of brands, but this is an exceptional time,” con- was brisk, a mood of high anxiety overshad- tinued LoRe, former ceo of Giorgio Beverly owed several vendors’ hopes. The reason — a Hills, whose background in masterbranding in- new generation of status and celebrity brands cludes the fragrance launches of Giorgio, Red, are beginning to spar for a bigger chunk of Wings, Ocean Dream and Hugo Woman. “This open-to-buy dollars, as well as premium space reminds me of the late Nineties when Vict- in intimate apparel departments at major de- oria’s Secret put its foot on the gas pedal. partment and specialty stores. Rather than becoming part of the market The transition in lingerie departments is share, this new development will increase the being driven by two powerful new brands by size of the pie for everybody.” The Warnaco Group — JLo by Jennifer Lopez, Tom Wyatt, president and ceo of Warnaco’s which will be distributed in July to more than Intimate Apparel Division, sized up the ven- 800 major doors, and Lejaby Rose, which began dors’ situation this way: “Yes, I think there’s selling at more than 200 doors this spring. The going to be a shakeup. What you’re going to see snowball effect will grow in July with the intro- is a delineation between better and moderate- duction of Choice Calvin Klein, a line of under- priced department stores and chains who will wear and lingerie aimed at teens, and Calvin edit their assortments to become more distinct Klein Sensual Support shapewear. It’s another for their consumer base. The Federated’s and move by Warnaco that is expected to further en- Saks Inc.’s of the world are trading up, while trench the Calvin Klein persona in the psyche commodity brands will be distributed to more of young, contemporary consumers, as well as midtier and lower-level chains.” carve a bigger share of space for the Calvin “It’s a tough world to establish and launch Klein Underwear stable. a nonpromoted brand and create consumer Fueling the dynamics are the possible addi- awareness,” said Chuck Nesbit, a retail con- tions of two upscale designer names from the sultant and former ceo of Sara Lee Intimate ready-to-wear and eveningwear fields: Vera Apparel. “Sara Lee spent significant sums to Wang and Badgley Mischka, both of which are launch Barely There, and that was a promot- looking for a lingerie license, according to in- ed brand, so that made it easier. I just won- dustry executives. And in 2005, Warnaco will der how many women will pay over $30 for a launch another big name — Speedo Intimates. bra in a low-service environment without it Adding to the momentum are several other being promoted.” new licensees this year: bras and panties by Nesbit further noted, “The number of con- Natori Black Label and Natori White Label at sumers going to department stores to buy lin- Dana-Co.; Betsey Johnson sleepwear and day- gerie is eroding, and new specialty store com- wear at Carole Hochman Designs Inc.; day- petitors will service those consumers. The wear and underwear by Necessary Objects at question is how many brands can the con- International Intimates, and Puma bodywear sumer keep up with? There’s also the issue of and underwear for men and women, designed space and the willingness of stores to remain and produced by Schiesser Lifestyle. Last patient until sales catch on, as well as the year, a licensed line of Liz Claiborne founda- willingness of licensees to commit to market- tions by Gelmart Industries’ Chelsea Design ing the brand.” Group was introduced and the luxe Italian La Josie Natori, ceo of Natori Co., said: “I’ve Perla firm launched a sexy brand, La Perla never seen such positive enthusiasm from Black Label. retailers and I think lingerie is on a roll. Long-established vendors are bristling at the Retailers are no longer looking at it only JLO PHOTO BY THOMAS IANNACCONE; BETSEY JOHNSON BY ROBERT MITRA ROBERT THOMAS IANNACCONE; BETSEY JOHNSON BY PHOTO BY JLO prospect of losing ground to the newcomers in as a margin builder, but as fashion. an industry that rang up sales of $12.4 billion in Stores are hungry for new concepts 2003. While they consider this a topic too sensitive to discuss on the right now, and there’s a lot of opportu- record for fear of alienating retailers, a number of manufacturers — nity and room for existing brands or primarily moderate-to-better houses — acknowledge they haven’t done new brands as long as you know where what retailers are demanding: develop product concepts, expand classi- Betsey Johnson’s you’re cementing your business.” fications and create sizzle with a hot new name or marketing campaign. signature printed, Regarding the quest for new ideas, Their main concerns are losing retail space or seeing distribution high-gloss lingerie Mary Krug, vice president and division- shrink to a few doors. In some cases, makers privately said they are at Carole al merchandise manager of intimate ap- frightened of losing entire accounts. parel and hosiery at Neiman Marcus, Hochman. Their concerns are not off base. By spring 2005, retailers generally said: said, “I think we’re always looking for ● They plan to take a hard look at what resources will remain and what newness to add to our assortments. We will be dropped. have to have an infusion of new vendors, but ● Smaller, low-profile resources are not the only ones threatened as most it has to be a solid name and the right product major stores trade up with brands that have a certain cachet and style to differ- that fills a need. We’ve added one new exclusive entiate them from the competition. The shadow also covers big designer names, label for fall, K Jays by Kay Unger. There’s still some of which have had lackluster sales in the past year. room for more assortments for spring, and we’re open ● Compounding the problem for vendors could be a thinning out of well-known to more luxury names.” national bra labels that are promoted day-in and day-out and lack newness and inno- Assessing lackluster brands, one retailer who did not want to be vation. named, said: “I think we are certainly taking a look at brands that are struggling, and ● In a way, a fallout could be a solution to the dilemma that’s been dogging retail- we are trying to make those brands healthier in terms of partnership. I’m sure they ers for a decade — a promotional merry-go-round that has turned off consumers and are feeling pressure in terms of space.” degraded the high-margin bra business into a yearlong White Sale. Donna Wolff, vice president and dmm of intimate apparel and hosiery at Meanwhile, industry insiders compare the demand for fashion and newness with Bloomingdale’s, noted, “We’re continuing our brand strategy of trading up and going the heyday of designer lingerie in the late Nineties, when several prominent designer after the newness. That’s what Bloomingdale’s is all about. We are extremely enthusi- names — like Calvin Klein Underwear, Tommy Hilfiger Intimates, Ralph Lauren astic about new brands like Lejaby Rose, Choice Calvin Klein, Betsey Johnson, Puma Intimates, DKNY Underwear and Donna Karan Intimates — dominated intimate ap- and Lauren by Ralph Lauren sleepwear, which now is in 15 doors and will be rolled parel departments with in-store shops that cost $75,000 to $100,000 or more apiece. out to all Bloomingdale’s doors. Our Oscar de la Renta Pink Label [sleepwear] busi- But several of those shop concepts didn’t work because they were too formulaic ness is very good, and we plan to expand the upscale Oscar de la Renta Navy Label.” and created too much overhead for manufacturers. As a result, department stores Another senior merchant from a large buying group who did not want to be reverted to standard innerwear departments, meaning miles and miles of robe identified, said, “We absolutely need newness, and differentiation is our strategy. racks, panty tables and bra fixtures. The category seemed to lose energy with little We support the brands that are exclusive and address a modern, fashion customer. apparent fashion flair. JLo by Jennifer Lopez certainly brings a new tier of customer. We are looking at Now, lingerie again appears to be a prime candidate as a destination category at how we have a more balanced assortment at our stores. We can’t be overly assorted stores. In February, Saks Fifth Avenue’s chief executive officer Fred Wilson described in only one category.” lingerie as an “important business. It’s what brings the customers in to shop. I plan to “This is all fine and dandy,” said one retailer from a major department store relocate lingerie to a ready-to-wear floor.” chain. “But in order to make room for all of these new names, you’ve got to give up From a retailer’s perspective, Linda LoRe, president and ceo of Frederick’s of funding for brands that are not generating any action. I suspect it will be some basic Hollywood, observed, “This reminds me of when I was in the fragrance industry. bra brands. And in some cases, certain classifications from status brands that Designer brands started to become the gold standard. The size of the intimate ap- haven’t been performing like sleepwear could be dropped to make room for new parel market has not exploded for several years. We are now seeing a bastion of names and products.” ANNUALNOW The Fortune 500 of Fashion

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Financial Weekly Stock Index 52-Week Sales Amt WWD Composite Stock Index vs. S&P 500 High Low P/E (00’s) Last Change Retailers 36.38 23.07 Abercrombie & Fitch 16.1 138052 34.85 2.40 25.20 11.00 Aeropostale 23.5 51561 23.50 0.82 47.15 22.18 Ann Taylor 15.7 57736 40.35 1.00 24.33 10.09 Bebe 26.7 7820 19.32 -0.36 5.97 0.76 Bluefly - 1898 2.51 0.01 17.95 3.76 Bon-Ton 7.3 4378 10.01 -0.13 22.50 15.45 Burlington Coat 16.4 3498 17.66 -0.60 35.44 8.52 Cache 22.0 3776 27.56 -0.26 25.50 17.05 Cato 14.3 2726 19.38 0.02 19.29 8.60 Charlotte Russe 23.7 7198 17.26 0.38 8.22 3.94 Charming Shoppes 19.2 30554 6.83 -0.08 47.60 18.80 Chico’s FAS 33.8 54593 39.03 -1.32 32.85 12.51 Children’s Place 20.6 46354 22.31 -0.25 41.34 24.85 CVS 18.8 146472 40.18 -0.76 27.01 17.58 Deb Shops 23.8 282 22.85 -0.15 19.30 12.51 Dillard’s 159.6 73742 17.44 1.81 23.40 15.39 Dollar General 19.8 127748 17.70 -0.15 18.72 12.20 Dress Barn 64.0 2825 16.02 -0.04 44.13 26.51 Family Dollar 18.2 129536 28.13 -1.00 55.06 29.93 Federated 11.7 110290 46.34 -0.26 23.47 16.28 Gap 19.3 207164 21.89 -0.11 14.80 5.32 Goody's 21.8 8468 11.51 -0.15 6.48 1.32 Gottschalks 25.3 810 5.38 -0.41 19.58 3.86 Guess 45.1 8748 14.25 -0.44 10.00 0.01 Harold’s Stores - 57 2.50 -0.12 32.30 15.48 Hot Topic 19.9 71884 20.19 0.02 36.77 15.57 J.C. Penney 26.5 184727 32.02 -1.01 48.50 13.74 Kmart - 29223 44.30 1.77 65.44 39.59 Kohl’s 24.5 172557 43.57 1.89 21.65 13.00 Limited Brands 14.4 111786 19.88 -0.12 36.48 20.02 May Dept. Stores 19.4 136713 28.37 -0.13 SOURCE: DATA NETWORKS, STANDARD & POOR’S 37.87 19.72 Mothers Work 9.0 729 21.37 -0.62 59.70 32.15 Neiman Marcus 14.0 10205 48.71 -0.22 41.25 15.78 Nordstrom 20.6 49967 36.27 0.77 25.78 13.07 Pacific Sunwear 18.1 186681 20.60 0.07 8.60 1.90 Retail Ventures - 4569 6.82 -0.18 32.86 19.43 Ross Stores 18.1 126718 26.60 -1.23 17.92 8.50 Saks 24.1 53876 14.23 0.20 Apparel Spending Strong for Week 56.06 26.56 Sears 3.4 107168 37.82 0.02 17.23 11.02 ShopKo 9.8 11377 13.33 1.11 42.01 19.84 Stage Stores 12.2 16975 36.05 0.72 NEW YORK — Despite strong year ago, and same-store sales At Target, net earnings climbed 14.52 5.00 Stein Mart 154.4 11224 13.85 0.32 quarterly results from a host of advanced 12.7 percent. Since to $438 million, or 48 cents, dur- 8.20 6.20 Syms - 180 7.72 0.00 apparel retailers, the WWD last Friday, shares of PacSun de- ing the quarter compared with 38.65 25.70 Talbots 18.0 12618 33.20 -0.55 Composite Stock Index dipped creased 0.6 percent to $20.40. earnings of $349 million, or 38 46.81 32.56 Target 20.4 246172 43.00 -0.26 for a third straight week, falling Fueled by its Hollister con- cents. Total revenue jumped to 26.12 17.39 TJX 18.3 111838 23.83 0.30 50.69 14.88 Urban Outfitters 30.9 52667 46.57 0.26 8.9 percent to 105.64 on Friday. cept, Abercrombie & Fitch saw $11.59 billion from $10.32 billion 37.42 28.80 Walgreen’s 27.4 164732 33.60 -0.95 The S&P 500 dropped 0.3 percent its net jump 16.1 percent to $29.7 a year ago, while net sales ad- 61.31 50.50 Wal-Mart 26.1 579615 55.06 1.16 to close at 1,095.66 for the week. million, or 31 cents a diluted vanced 12.7 percent to $11.25 12.99 5.05 Wet Seal - 28905 5.84 0.54 Oil prices reaching record share. Comparatively, the com- billion from $9.98 billion. 10.15 1.95 Wilsons Leather - 8280 2.55 0.24 highs coupled with an impend- pany reported earnings of $25.6 Company-wide, comps improved 62.60 34.06 Zale 14.9 12778 53.95 -0.47 ing hike in interest rates has million, or 26 cents a share, in 6.6 percent. Target shares gave VENDORS The Street focused on a poten- the year-ago quarter. Sales for up 0.2 percent, closing at $43.17 48.20 32.99 Alberto Culver 31.0 17850 46.21 -0.53 tial pullback in consumer the period increased 18.8 per- for the week. 85.85 57.00 Avon 27.5 73726 84.39 -0.17 spending going forward. cent to $411.9 million from Wal-Mart saw net income 27.41 16.70 Benetton 30.4 185 23.28 -0.60 But while these fears are $346.7 million. Comparable- grow to $2.17 billion, or 50 cents 24.75 14.95 Cherokee 13.8 293 23.24 -0.81 driving their investment deci- store sales were flat for the a diluted share, from $1.86 bil- 45.45 21.40 Coach 33.7 65676 41.24 -0.06 sions, apparel industry data quarter, but as Lehman Brothers lion, or 42 cents, a year ago. 59.39 43.50 Columbia Sprtswr 16.7 12924 52.75 0.63 continues to paint a picture of a analyst Kimberly Greenberger Total revenue for the period 34.48 20.91 Del Labs 14.6 433 28.31 -1.34 consumer whose spending noted in her preview of the com- climbed to $65.44 billion from 23.94 10.83 Elizabeth Arden - 6781 22.29 -0.96 47.09 32.60 Estée Lauder 29.6 56593 45.15 -1.30 power is still growing. In fact, pany’s earnings, it was the com- $57.22 billion last year, while 25.97 13.23 Fossil 15.5 35506 23.22 -0.96 results from specialty retailers pany’s first non-negative comp net sales rose to $64.76 billion 12.00 5.95 G-III 6.7 56 8.10 0.00 in particular, showed consumers performance since the first from $56.72 billion. As for com- 38.40 29.18 IFF 16.9 26760 34.75 -0.50 bought more often and were quarter of 2001. Shares of parable-store sales, Wal-Mart’s 33.36 6.78 Inter Parfums 26.3 8941 22.64 1.71 willing to pay full price when Abercrombie ended the week up U.S. stores increased 5.9 per- 39.74 27.60 Jones Apparel 15.3 39032 36.65 1.01 they did, a trend that may signal 7.7 percent to $34.96. cent and consolidated comps 43.60 26.79 Kellwood 14.6 7760 40.12 0.82 the beginnings of a rebound in As expected, Urban Outfitters jumped 6.4 percent. 37.39 18.55 Kenneth Cole 19.2 6453 32.29 -1.15 38.90 32.00 Liz Claiborne 13.0 38644 34.22 0.57 the teen apparel market. Inc. thrashed expectations, with “Gross margin improvement 6.90 3.40 Mossimo 15.1 746 4.33 0.18 In a research note released earnings rocketing 163.9 percent for the quarter resulted from 32.50 19.46 Movado 15.8 758 29.77 -0.42 on Friday, Wachovia Capital to $16.9 million, or 41 cents a di- better apparel performance and 78.56 49.60 Nike 20.5 85161 67.69 1.12 Markets analyst Joseph Teklits luted share, on a sales gain of the benefit of our global sourc- 2.70 1.54 Novel Denim - 192 2.02 -0.29 pointed out that, according to 59.1 percent to $170.3 million. ing,” said ceo Thomas Schoewe 47.50 17.98 Oxford 21.0 8054 36.56 0.58 data from the U.S. Department Comparatively, the company re- on a prerecorded call. Wal-Mart 29.95 17.86 Perry Ellis 15.5 1605 24.73 -3.32 of Labor, apparel prices have ported earnings of $6.4 million, shares were up 2.5 percent to 19.95 12.65 Phillips-Van Heusen 16.7 5369 16.82 -0.21 gone up for the first time in five or 16 cents, on sales of $107 mil- close at $55.25. 37.05 21.25 Polo Ralph Lauren 17.5 17240 32.00 -0.09 23.41 14.70 Quiksilver 18.2 29503 20.52 -0.23 years. However, “over the past lion a year ago. Shares of Urban Kohl’s Corp. posted first-quar- 42.95 29.50 Reebok 13.0 49909 34.63 0.21 two years monthly prices have fell 0.6 percent over the week to ter earnings that rose 2.5 percent 46.56 27.76 Regis 18.2 13918 41.40 -1.69 fallen by an average of 2.4 per- close at $46.04 on Friday. on a 12.5 percent gain in sales. 3.93 2.05 Revlon - 100054 3.00 -0.50 cent from the previous year,” Warrendale, Pa.-based Net income came in at $113.8 mil- 21.15 15.43 Russell 13.0 8433 16.08 -0.13 said Teklits. “Over the past five American Eagle wasn’t left out lion, or 33 cents a diluted share, 4.76 1.51 Tarrant - 1308 2.00 -0.20 years, the average decline has of the specialty party, recording versus $111 million, or 32 cents, in 18.25 7.54 Tommy Hilfiger - 27517 14.73 0.02 been 1.9 percent.” The upward a 292.1 percent earnings in- the same year-ago quarter. 8.59 0.90 Tropical Sprtswr - 7149 2.25 -0.18 21.02 10.18 Warnaco - 19521 19.65 1.57 trend, said Teklits, was evident crease to $25.1 million, or 34 Goldman Sachs analysts from markedly improved mar- cents a diluted share, compared George Strachan and Adrianne Biggest Percentage Changes gins reported by most retailers with earnings of $6.4 million, or Shapira noted in their research WWDStock Market Index during the first quarter. “This 9 cents a share, in the year-ago note that Kohl’s results were “a For Week Ending May 14 firming of prices is likely a com- quarter. Sales improved 19.9 penny below our estimate.” Gainers Close Change bination of tight inventory con- percent to $350 million from “Inventory was well con- Dillard’s 17.44 11.58 trols, compelling spring fash- $291.9 million. trolled, rising only 2.8 percent Composite: Retailers: Vendors: Wilsons Leather 2.55 10.39 ions, a better economy and a “I believe this quarter marks versus a 12.4 percent sales in- 105.64 103.75 115.54 Wet Seal 5.84 10.19 more upbeat consumer.” a turning point for our company,” crease, and the company ShopKo 13.33 9.08 Pacific Sunwear of California said James O’Donnell, chief ex- achieved strong gross margin re- Warnaco 19.65 8.68 Inc. said net income jumped ecutive officer, during the com- sults,” they wrote. “But comp- -2.19 -0.41 -14.51 Losers Close Change 87.7 percent to $15 million, or 19 pany’s conference call. American store sales declined 0.1 percent Revlon 3.00 -14.29 cents a diluted share, for the Eagle added that its markdown for the quarter on top of a 2.4 Novel Denim 2.02 -12.55 first quarter. By comparison, rate was its lowest in five years. percent decline in 2003.” Perry Ellis 24.73 -11.84 last year PacSun posted profits Shares fell 3 percent by the end Kohl’s shares closed the Index base of 100 is keyed to Tarrant 2.00 -9.09 of $8 million, or 10 cents. Sales of the week to close at $26.44. week with a 2.3 percent gain to closing prices of Dec. 31, 2002. Tropical Sprtswr 2.25 -7.41 increased 23.6 percent to $245.1 Apparel was a driver for the $42.63. million from $198.3 million a mass merchant channel, as well. —Ross Tucker WWD, MONDAY, MAY 17, 2004 25

FASHION RESUMES Administrative SINCE 1970 Sales Assistant For Fashion and Retailing Nationally known Jewelry Manufacturer Jersey + Rib Lycra seeks an organized, energetic individual Fleece + Velour Professional Resumes Inc. that wants to learn and grow with our Drake Fabrics Lifetime Updating/ winning company. You’ll be assisting 718-389-8902 the day to day operation of the sales Telephone Interviews team including order management, inven- Rush Service Available tory meetings, internal merchandise and 60 East 42nd Street Suite 839 customer follow-up. You’ll have constant interaction with reps and clients so a New York, NY 10165 professional demeanor and excellent 212-697-1282 / 800-221-4425 communication and organization skills Cash For Retail Stock & Closeouts. www.resumesforfashion.com amust.Computer proficiency in Outlook, No Lot Too Big or Too Small. Excel and Word necessary. Previous expe- Call CLOTHES-OUT: rience a plus, a college degree a must. (937) 898-2975 Weoffer a competitive salary & benefits package plus an excellent opportunity for corporate growth. Qualified candidates should Fax or mail your resume to: DEPT. ASA/Human Resources FAX: (718) 349-4424 JACMEL Jewelry 30-00 47th Ave, LIC, NY 11101 Equal Opportunity Employer M/F APPAREL STAFFING, LTD. Dsgnr-C.N.S. knits junior market $Open Dsgnr - Sweaters junior market $Open Dsgnr- Boys-Toddler thru Size 7 $BOE Junior Designer DsgnrAsstnt-1yr+exp in childrenswear $35K Leading handbag manufac- Operations Mgr.-Sptswr MFR. to $85K Prod Asstnt-Imports-Sptswr MFR to$35K turer seeks a creative and Sourcing Coord-Bi-lingual-Sptswr-mfr to $50K highly motivated Junior De- Techn Dsgnr-Full fashion sweaters-$Open signer with 1-3 years experi- Techn Dsgnr-Outerwear+ Sptswr- $Open Techn Dsgnr-cwr knits exp. -$BOE ence. This individual should Techn Dsgn Dir - Intimate Apparel 488 7th Ave (36th Street) be familiar with the Teen Other [email protected] LIVE/WORK market. Ideal candidate or Fax Resume to (212) 302-1161 Spacious Loft-Like Showroom should be very organized, ASSISTANT DESIGNER / 2 baths, 2 entries ...... $2,950 detail oriented and a team GRAPHIC ARTIST 1BR Showroom Apts...... From $1495 player. Must have knowl- Major apparel company seeks individual Wood floors, Hi Ceils. Immed Occup edge of Illustrator 8-10 and with design and strong CAD skills. 212-629-8694 M-F 10a-6pm No Fee Photoshop. Please fax re- Responsibilities include all aspects of line development- sketches, presenta- For Space in Garment Center sume and salary require- tion boards, specs. Individual must be Helmsley-Spear, Inc. ments to: 212-696-2098 experienced with t-shirt graphics 212-880-0414 and embellishments. Knowledge of Photoshop and Illustrator is a must. Showroom / Office / Retail Fax resume to 212-239-2766. We find you space-best deal-no fee Sublet 525 7th/ready ASSOCIATE DESIGNER Garment Center Real Estate Major apparel company has 3 openings/ Call Paul 212 947-5500 X 100 Designer opportunities for an Associate Designer w/either boys/girls experience or Men’s Showrooms & Lofts Neckties and Ladies Activewear. Individual will BWAY 7TH AVE SIDE STREETS Goldluck International, a leading int’l be involved in all design aspects. Must Great ’New’ Office Space Avail necktie mfr seeks a market-oriented be creative, organized, and have ADAMS & CO. 212-679-5500 excellent communication skills. designer with 5-7 yrs of necktie expe- Fax resume 212-239-2766. rience. Solid exp with woven design and computer savvy a must. Great Buyer work environment and excellent ACCESSORIES BUYER Cutting edge retail organization seeks benefits. an Accessories Buyer with extraordinary Fax/Email resumes with ability to access fashion trends. 1-2 yrs’ 215 West 40th Street reference: 212-448-9288 or buying/merchandising exp for a specialty/ Sublet furnished showroom/office high-end retailer preferred. Proven space. Approximately 800 Sq. Ft. [email protected] success in sales and profitability goals Bathroom/Kitchen. Available immedi- amust.Attractive salary, generous Designer $100-125K. Current exp. in ately. Please call Joanne 212-391-8222 benefits. Unique opportunity in a bras and intimate apparel req’d. Mid- rapidly growing company! Send your town well known established growing 525 7th Avenue resume to [email protected]. EOE co. Call 973-564-9236 Jaral Fashion Agcy Shared, furnished showroom. Utilities included. $3000.00/month. Please call Major Apparel Co. seeks: CAD Artist Corey at: (212) 354-6900 ext. 201 Large textile converter seeks several Designer $65-85K. Current exp. in girls 7-14 Showroom Sublet-Brand New Asst. Shipping Manager - CAD artists. Intermediate and ad- denim-based sptswr. Must hang w/ LEI, Mudd, 171 Madison 3800 FT Wood Floors Org., hard-working, exp. w/ vanced skill levels in U4ia, Photoshop, etc but w/ Abercrombie & Fitch + Hollister Prime Manhattan Jon 212-268-8043 dept. store shipping & EDI. and Illustrator. Both creative and tech- looks. Creative. Call 973-564-9236 Agcy Search-www.manhattanoffices.com nical. Fax resume to : A/R - factor receivable and 212-869-2245 attn. Paul reconciliation. Designer $70-90K. Current exp. in jr. ca- CAD Design (4) $30-$65K sual wear, Anorak jackets, etc with Fax resume to 212-405-5071 1-5 yrs young mens, kids, womens Abercrombie & Fitch + Hollister looks. Jennifer *Just Mgmt* 800-544-5878 Creative. Call 973-564-9236 Jaral Agcy [email protected] CAD Designer to $70K. Current exp. in prima Designer $80-100K. Current exp. in vision 5.2. Photoshop/ Illustrator. Print repeats, private label cut & sewn knits + stripes, plaids, etc. Graphics for jr. girls knit sweaters. Fashion vision of Emma ACCESSORY JOBS sportswear. Call 973-564-9236 Agcy Jones, Cold Water Creek, Christopher •Product Assist-Entry Level-25K Chief Operating Officer to $175K++. Current Banks etc. Call 973-564-9236 Agcy •Graphic Artist-Prod & Packaging 50 K exp. in women’s outerwear. Must hang w/ G3, OFFICE FURNITURE •BELTS-SALES-MASS-$$$$ Galery, Larry Levine, Forcaster, etc. Strong re- Designer $90-100K. Current exp. in jr. sports- •Production Coord-Jewelry-50K lationships w/ May + Federated+other dept wear collecion dept store level required. Must MOVING - MUST SELL! •Designer w/Graphics-Backpacks-$$$ stores required. Call 973-564-9236 Jaral Agcy Exec sets, conference tables, chairs, files, hang w/ Hotkiss, fang, Swat, etc. LA, Calif or •Jewelry-All Positions 50 K to 100K NYC loc OK. Call 973-564-9236 Jaral Agcy etc. Best offer takes all! Call 212-840-2621 •Hosiery Sales-Long Island $$$ Costing Engineer to $65K. Min. 1-2 yrs. •Handbags-All Positions $$$$ exp. in costing prototype bras required. Email Resumes: [email protected] Calculate yields. Computerize. Mdtwn lrg Designer/Camera & CD Cases/to 70k co. Benefits. Call 973-564-9236 Jaral Agcy For mjr. Accessory Co’s highly successful Media Storage Case, Div. Design soft camera & CD/DVD cases. Req: expr. Accounts Receivable Data Processing Analyst designing related product (laptop cases, Midtown men’s sportswear co. seeks exp’d Seeking detail oriented person w/strong luggage backpacks etc.). Strong Illustrator, Pattern - Production - Samples Accts. Receivable to assist w/ posting multi-tasking & computer skills. Fax Photoshop and detailed drawing skills. & collections. Exp. w/ dept. store charge resume/salary request to: 212-704-0738 E-mail resume:[email protected] Full - Fast - Quality backs a +. Must know basic accounting (Fax)212-725-7116 (Tel) 212-481-1941 212-575-1001 & journal entries. Desired salary must Design be included in reply. DESIGNER IMMED Please fax: (908) 832-1589 or Accessory Designer ASSISTANT Email: [email protected] EOE Spec designer for watches and gift box- LEARN EVERYTHING es. Great fashion sense. 2-3 yrs exp. [email protected] PATTERN/SAMPLES Watch exp a+. Able to work independ- Reliable. High quality. Low cost. Fast ently. Knowledge of Illustrator & Designers(2)/HANDBAGS/TO 70K+ WATCH PROFESSIONALS work. Small/ Lrg production 212-629-4808 Admin. Assistant Photoshop A+. Friendly atmosphere. For mjr. Accessory co. Design either Leading global packaging Accessories & Medical benefits. Please fax resume Ladies Contemp. or Jr. Branded Bags/Access. ALL LEVELS PATTERNS, SAMPLES, Design Co. seeks Administrative Assistant 212-947-7601 Great oppty to help develop new fashion to join a fast-paced environment. Candi- forward products. Req: 3- 5 yrs. related Leading Watch Company has Exciting Career Opportunities. PRODUCTIONS date will be involved in all phases of DESIGN ASSISTANT expr., strong Illust/Photoshop &detailed All lines,Any styles. Fine Fast Service. customer, supplier, and other administra- Couture house seeks organized, self- hand sketching. Call Sherry 212-719-0622. tive support, including order processing, motivated indiv. to assist in all areas. E-mail resume: [email protected] •Professional Sales to all levels of distribution. Must be able customer follow-up, and extensive clerical Knowledge of Photoshop. (Fax) 212-725-7116 (Tel) 212-481-1941 to create and monitor sales plans. Traveling, Excellent working responsibilities. This full-time position Please fax resume to: 212-398-6185 environment. PATTERNS, SAMPLES, requires the individual to manage phone calls for an executive, and act as liaison DESIGN ASSISTANT DESIGNERS •Planners and Analysts needed. Must have experience compiling PRODUCTIONS between executive, customers, and suppli- Major children’s apparel company FREELANCE (JEWELRY) and analyzing sales reports, monitoring inventory and forecasting. Samples and patterns full servcie shop ers. Individual must have organizational seeks design assistant with experience Haskell Jewels/Miriam Haskell/J Lo to the trade. Fine fast work. skills with attention to details. Position in production worksheets. Must be Growing trend jewelry company seeks Box#M 1121 212-869-2699. requires Excel, Word, and database detail oriented with great organization- innovative Freelance Jewelry Designers c/o Fairchild Publications applications. Knowledge of garment/ al skills. Must also be a team player in w/technical drawing and bead manipu- PTTNS/SMPLS/PROD fashion industry is preferred. E-mail exciting, fast paced work environment. lating skills. Work in-house or off site. 7 West 34th Street, 4th Fl High qlty, reasonable price. Any de- confidential resume and salary require- MAC/Illustrator exp. needed. Please fax resume to: (212) 764-6026 or New York, NY 10001 sign & fabric. Fast work. 212-714-2186 ments to: [email protected] Fax resume 212-239-2766 Email: [email protected] 26 WWD, MONDAY, MAY 17, 2004

CAROLE HOCHMAN DESIGNS ASSISTANT DESIGNER INTIMATE APPAREL/SLEEPWEAR Leading intimate apparel company is looking for a creative, organized and detail-oriented individual to join our Private Label sleepwear team. As an assistant designer, responsibilities would include work- SR. LEVEL BUYER OPPORTUNITIES! ing on design projects from start to finish, interfacing with Live, work, and build your career all in a leading fashion sample room, generating designer spec sheets, preparing retail specialty company located in San Diego, California!! trim cards and researching trims. Charlotte Russe and Rampage Stores are currently seeking qualified Senior Buyer and Buyer candidates with the Qualified candidate must have excellent communication following qualifications: skills and be computer literate. Must be able to work in a fast-paced environment and meet deadlines. Strong color, *Extensive, fast-paced, Buying experience in a contemporary print and pattern sense is essential and CAD experience is a a/o junior, high volume, multi-unit fashion company! plus. Must have a minimum of 2 years experience. Previous experience in intimate apparel/sleepwear preferred. *Outstanding taste level and business acumen! If you are a "team player" and have a passion for design, *Excellent vendor relationships and negotiation skills! please fax resume to: Donna Ingram @ 212-725-8723. At Charlotte Russe and Rampage Stores, our continued nation-wide expansion continues to afford talented and qualified employees with tremendous career and promotional opportunities. CONTACT US TODAY! Apply on line @ www.charlotte-russe.com or fax resume (w/ sal. history) to: 858 875-0326. CAD ARTIST Opportunity for a true artist to create and refine beautiful Tech Designer..$Open...DOE traditional floral prints using the computer as your paint- Major M/T importer of knits/sweaters has immed. openings for Tech Designers. brush. Must have strong sense of artistic style and color, ex- Must have 3-5 years of knit exp. Cut & perience with Photoshop/Illustrator and textile design. sew knit tops. Must have good fashion Pointcarre a+. sense & flair. CAD is a major plus. Able to do sketching. Other position avail for MERCHANDISER IMMED Sales, Design, Production, etc. DIRECTOR Production Asst Asst Tech Designer....$45-$50K CAD ASSISTANT: BOYS Anapparel company is looking for a For top childrenswear co. Evaluate We are looking for a well organized, energetic and $OPEN$ highly motivated person who is willing first samples through production. detail-oriented person to create line sheets, recolor & design [email protected] to work long hours. No exp needed. Spec, grading and fitting & sewing Great learning exp. Call 646-249-7077 knowledge. Exp. with Wal-Mart and prints and presentation boards. Ideal candidate should have Pattern Grader $65-80K. Current exp. Target. Childrenswear background a strong color sense, experience with desktop publishing, Adobe in bras. Lectra or Gerber computer Production Coord $40-50K. Current exp. in Ju- nec. 2-5+ yrs. Exp req’d. Midtown Large Co. Excellent nior or Kids denim bottoms req’d. Knowledge Photoshop and Illustrator. Pointcarre a + . benefits. Call 973-564-9236 Jaral Agcy Assistant Designer…..$35K-$45K of contruction of woven garments Track and For successful active/outerwear co. Patternmaker $90-100K. Current exp. in schedule import production from inception to Must have 2-4 yrs. exp., Photoshop 6 Key Account To join our team, fax resume to: 212-725-8723 attn: Sara tailored lined women’s jackets for suits. completion. Call 973-564-9236 Jaral Agcy and Illustrator 9 or 10. Excel a plus. Carole Hochman Designs, Inc. Must be able to make pattern from sketch. Fashion Design Degree req. Must have Manager Exp in Lectra or Gerber also. Paid Relo to exp in activewear or sportswear and in Phila. Call 973-564-9236 Jaral Agcy Production Coordinator children’s or menswear. Know design, Sales rep with national Large Childrenswear Co. seeks a Prod. detailing and art to be sent out to sam- Designer Patternmaker to $70K. Current exp. in Coord. to follow up w/ Wal-Mart, Target, pling. Production status overseas. chain & major dept store bras or swimwear. Secaucus New etc. accts w/overseas factories. Candi- Approve strikeoffs and prints under experience. Luxury goods Sleepwear/Daywear Jersey location. Growing company. date must have 2-3 yrs exp., bilingual in head designer. Seasoned pro with excellent taste lev- Call 973-564-9236 Jaral Fashion Agcy. Chinese & English. Familiar with CTL Both are great companies with excellent background preferred. el. Must be able to identify emerging approval procedures a must. benefits. Contact Ms. Hardy at: trends and silhouettes. Must possess FREIGHT & DUTY AUDITOR / Minimum 5 years exp. CUSTOMS COMPLIANCE PATTERNMAKER Fax 212-967-8631 Att: JD 212-878-2000 fax: 212-949-3928 or great color, print and embroidery email: [email protected] sense. Must be able to make 1st pat- Immediate Position - Well known Mfr. of Ladies’ Moderate Please send resume to: tern, manage sample workers, follow Excellent Opportunity! Sportswear seeks person exp’d. in full Production Coordinator [email protected] up with fabric vendors, maintain clear Wearealeading childrenswear manu- lined jackets. Medical & 401K available. TECH DESIGNERS Call Gus at: 212-869-3619 Mass market children’s and ladies Missy Sportswear Paid Relo Phila $60-70K records, knowledge of fit and garment facturer seeking candidates for our apparel importer seeks organized and construction. Candidate will be respon- Import/Export Department. The posi- Asst tech Designer Denim bottoms NYC $40K detail oriented individual for order follow Call 973-564-9236 Jaral Fashion Agency sible for line development within a tion will be responsible for the audit of Product Coordinator up with factories in asia. General team environment. Must be able to all broker invoices for 7501’s (custom Major Sleepwear Manufacturer looking knowledge of garment business as well Tech Designer to $60K. Some exp. in den- meet deadlines. We offer a competitive entry) for proper classification. Other for highly detail oriented individual with as experience using computers including duties will include the auditing of all im bottoms required. Wovens. Illustrator. HOSIERY SALES salary and benefits. Please fax resume, strong sense of color to handle approval e-mail, excel etc a must. Salary com- Well est’d legwear company with popular including salary requirements to: freight ocean/air/trucking freight tracking process from design concept Excel. Growing large jr. co.1407 Broad- mensurate w/experience. way. Call 973-564-9236 Jaral Fashion Agcy brand & license, offering complete women Lady Ester Lingerie Attn: charges. Must have extensive knowl- to production stage. Minimum 3 yrs Fax resume to 212-658-9135 Attn: HR Dept edge of the apparel industry as well as & men’s socks, trouser sock & tight lines Peter Cooper Fax # 212-889-7235 experience required. Proficient in Excel or email: [email protected] Tech Designer to $70K. Current exp. in wo- to EXPERIENCED REPS with following customs compliance. Please forward and E-mail. Walmart and Retail Link men’s or men’s outerwear required. Send tech your resume by e-mail to: only. Would consider in house position DESIGNER/ STYLIST exp. a plus. pakages to far east. Computerized. 7th ave at for the right person. Please send resumes, Leading Cotton Design House has ex- [email protected] or fax to (212) 543- Fax resume w/ sal req. to: 212-685-4341 Product Manager 38th St. Call 973-564-9236 Jaral Fashion Agcy 2826. No telephone calls please. EOE cover letter and salary expectations to: cellent opportunity for experienced Attn: Lauren Handbag co. seeks mgr. to oversee all E-mail: [email protected] or head stylist to manage "quilt" division. phases of overseas production. Must TECH DESIGN IMMED Fax: (212) 279-6111 Must have extensive experience in de- GRAPHIC ARTIST have minimum 5 yrs. exp. dealing with GREAT FIRM signing & coloring Quilt collections. Large apparel company is looking Product Develop. Assoc. Italy. Will communicate daily with $65,000 All responses will be kept confidential. for three talented Graphic Artists with For Mens/Boys & Girls swimwear factories, preparing p.o.’s and follow [email protected] Please email resume to experience in womens, infant/toddler- and wovens importer. Execution of up. Must be computer literate, have ISHYU & [email protected] boys, and men/boys. Individuals product packages & communication strong communication and negotiation TECHNICAL DESIGNER should be skilled with prints and em- skills with overseas factories essential. skills, extensive sourcing & import + Major apparel company seeks individual CARLIE’S COURT Designer Tech to $75K. Current exp, in bellishments. Must know Photoshop 3 yrs experience. custom regulations experience. Exp. with mass merchant experience, girls full fashion sweaters. Embellishments, and Illustrator. Fax resume to 212-695-1050 in leather goods, man-made materials size 4-16. Must have knowledge of flat SALES beads, embroideries. Tech sketching + Fax resume to 212-239-2766 and technical construction knowledge sketching, grading, and garment con- Highly regarded brand of moderate specs. Call 973-564-9236 Jaral Agcy amust.Allresumes will be kept struction. Must be detailed oriented and better separates and leader in Graphic Designer to $60K. Current exp 2-3 confidential. Please send resumes to: Designer to $100K. Current exp. contemporary years in Photoshop/Illustrator. Create PRODUCT DEVELOPMENT/MERCHANDISER and have good communication skills. blouses and skirts seeks dynamic and /JR cut & sewn tops, private label required. prints. Spot prints. Coordinate all art. Box#M 1058 Great salary and benefits. aggressive sales persons with a mini- Strong knowledge of cut & sewn fabric. Fash- Secaucus NJ area. Call 973-564-9236 Agcy c/o Fairchild Publications Fax resume 212-239-2766 mum of 5 years experience who is BAGS searching for an ambitious career ion forward look. Call 973-564-9236 Jaral Agcy Weare seeking a unique person with 7 West 34th Street, 4th Fl GRAPHICS IMMED New York, NY 10001 VP/ Head Merchandiser change. Must be well connected and Designer to $100K. Current exp in better TOP FIRMS experience, integrity and take charge motivated to develop and maintain personality, in the manufacturing process Urban Ethnic tween denim + activewear for dept store $$OPEN$$ We seek a superstar who knows what existing major accounts and able to branded line. Must hang with limited too, [email protected] of cosmetic bags, backpacks, tote bags, Publicity Assistant P/T merchandise, travel, organize show- etc. We sell to the low priced discount drives business, what makes it work. parigi, mamiye, etc. Call 973-564-9236 Agy Boutique PR Agency in SoHo with Excellent taste, kids experience, tre- room and be fully computer literate. trade, private label, fragrance and cos- personal care, accessories and home The right candidate will be compensated Designer to $135K HUMAN RESOURCE MGR metic industry. Must be aware of the mendously creative. KNow what is pos- design clients seeks energetic, articulate, sible at retail. Understand floor space, with a very attractive salary package Phili. location. Womens contemp sportswear Location: Manhattan and Five Towns fashion bag market trends, through meticulous, savvy assistant with flexible and/or commission including medical Jennifer *Just Mgmt* 800-544-5878 Area - LIRR Station Stop. magazines and shopping retail. Should fabrics, and construction. Deal with schedule 3-4 days/wk. Please fax resume: Liscensors. Handle production issues benefits and bonus. [email protected] Fast-paced leading branded men’s / have a pulse on European trends as (212) 226-1384 Please email well. Will work directly with China fac- &retail with tact. Package retail pre- Design (young mens) to $95K ladies accessory co. seeks hands-on sentations creatively. Direct design [email protected] human resources mgr with experience tories to establish the most competitive or Phone: 212-221-2001 X202 Cutting edge collection. Hang w/ Diesel pricing. You should be able to negotiate team. Understand big picture. Jennifer *Just Mgmt* 800-544-5878 in recruiting designers, merchandisers, SALES ASSISTANT Email: [email protected] or Fax: 514-389-2880 sales and warehouse personnel. Knowl- for the best prices. Heavy e-mailing to [email protected] factories and speaking directly to facto- Growing ladies apparel co. located in in total confidence edge of employment law, compliance, NYC seeks detail oriented and self employee benefits and HR related ries to get your ideas across. Must have EXECUTIVES/JEWELRY extensive knowledge of bag construction, motivated indiv. to assist sales, customer issues. Duties include: maintaining HR service, follow-thru, clerical etc. Must Director of Fulfillment/Distribution records and employee orientation. Excel- different material selections and cost Judith Ripka Companies VP Marketing Luxury Brands differences, bag specifications, etc. You have 2 yrs exp. as well as knowledge of Seeking the Best in Class!!! lent communication skills and high computer. Retail Store Planner energy level req’d. Experience working should know how to develop a product Unique opportunity to join a team of Sales Acct/CFO Diamond Company to fit a budget. Must be extremely organ- Fax resume to 212-768-3588 Pros at a flagship Madison Ave., Short Hills, for an accessory or apparel co. preferred. Attn: Michelle T. Call 212-564-6559 Salary commensurate with experience. ized, detail oriented and have excellent NJ, East Hills, LI, locations. 3+ years of [email protected] This is a one person department. Great communication and project management luxury sales exp. req’d. with polished opportunity! skills. Need to have a handle on numerous presentation/exceptional communication projects running at the same time. Will SAMPLE MAKER skills and proven track record. Strong FIT MODEL Fax resume to 718-471-3707 or email Fashion trend company seeks sample Need Fit Model - Part time for Junior work with a small staff to help assist in client following a must. Excellent benefits resume to: [email protected] designing, organization of outstanding maker experienced in all aspects of package & high income earning potential Intimate Apparel. Midtown location. costume jewelry. Some overtime Please fax resume to: 212-221-1278 projects, timelines, new projects, pre- available. Cosmetic or fashion exp. is a Merchandise production, production samples, etc. required. Send resume to: 212-481-4244. EAST COAST REP Sales Rep to call on gift, stationery & +++++ Please send resumes: Will develop working relationships direct- Attn: Theresa @ Fax: (212) 244-4560 ly with sales staff and customers. Must scrapbook stores in NY, NJ, PA, FL. be a team player and be able to leave Sewing Machine Operators Full time position. Est’d accts. Inde- your "ego" at the door. Knowledge of pendent Contractor. Commission only. FIT SPECIALIST Leather Accessory Mfr. - Melville. Mail resume to Basic Retail Services Need fit specialist for Junior Intimate Apparel Mfr. is looking to fill the drawing and preparing bag specifications for factories. Excel, Adobe Photoshop Experience Required. Benefits. PO Box 559, Red Oak, NC 27868 Apparel. Must have experience with following position: 631-249-9600 or Fax: 252-937-7750 sizing and specs. &Illustrator. Laid back atmosphere. Please fax resume to: 212-221-1278 RETAIL MERCHANDISE COORDINATOR All replies held in strict confidence. E-mail RI based manufacturer of all branded Northeast Territory: your resume with salary history to: Executive VP Sales accessory packaging is looking for an NY, NJ, PA, CT, MA, MD [email protected] SPEC TECHNICIAN indiv. w/ min 2 yrs strong sales experi- Seeking motivated self-starter to Major childrenswear importer of girls Men’s Outerwear ence in the fashion accessory field. maximize retail sales. Responsibilities &boys infant 2/6X-7 knit and Well-advertised top tier national brand Will consider entry level for right can- include: presentation of merchandise, woven sportswear seeks spec is re-launching an extensive and didate. Established relationships in Fitter/Seamstress interfacing with store management Production Assistant technician. The right candidate must fashionable line of high quality mid to jewelry and accessory markets a plus. Seeking a Senior Bridal Couture fitter/ and educating sales associates. Travel (ENGLISH/CHINESE) have minimum 3 years experience and high range men’s outerwear. Looking Proficient in Excel and Microsoft Word. seamstress. Must have 5 years experience required. Seeking exp’d., detail oriented profes- knowledge of patternmaking and for a candidate with wide experience Attract prospective clients through fitting high-end couture garments. Able to FAX OR MAIL RESUME - Attn: G.O. sional to communicate with overseas. garment construction. Knowledge of and industry knowledge, well connected cold calling. Grow existing client base. interface, communicate and manage high 2275 E. 37th Street Knowledge of technical/garment con- Excel a must. with dept. store senior mgmt. Excel- Submit resume and salary require- end clientele. Fax Resumes: Los Angeles, CA 90058 struction, MS Word/Excel, and specing Please fax resume with salary lent opportunity for right person. Fax ments via fax 401-751-6542 or e-mail to 212-869-5795 323-584-5955 NO PHONE CALLS a must. Fax resume to: 212-730-5118 requirements to 212-967-8108 Attn: CB resume in confidence to: 212-643-0593 [email protected] WWD, MONDAY, MAY 17, 2004 27 Art and Fashion as Bedfellows NEW YORK — Whether fashion hitches edited. “We’re trying to make one cohe- Christo and Jeanne-Claude. its star to artists or vice versa, the two for sive group show,” a spokeswoman said. “Issey’s vision is to bring new young the most part have a mutually beneficial “There were several works from sev- artists to the forefront,” said a spokes- relationship. Fashion companies sup- eral artists that ultimately were not in- woman for MDS. “We’re not looking for porting the arts hope the glamour and cluded, which is not at all unusual,” said controversy. That’s not really an interest. high-profile gloss of that world rubs off Clarke. “The pieces in the show pop and Issey’s feeling is if it shocks or surprises on their brands, while artists get finan- this piece was much more serious. By no you because you haven’t seen it before cial support and exposure they might not means is Ferragamo censoring art.” that’s great. We’re not looking to shock receive otherwise. Many of the works in the Ferragamo for a sensationalist purpose. We want to Gucci helped underwrite Vanessa show have a tart edge. Christina get people out of the habit of thinking in Beecroft’s 1998 “Show” at the Solomon Burch’s paintings of soft and dainty a set way.” R. Guggenheim Museum where models Japanese cherry blossoms upon closer Agnes b. isn’t out to shock shoppers, wore bathing suits (or nothing at all) and inspection reveal the form of a human either. Gucci stilettos. Hugo Boss offers a bien- Three works from skull. Alessandra Exposito’s painting of “We did a show with Ryan McGinley nial $50,000 prize to an artist along with a Ferragamo’s “Sweet a cupcake has the word “snob” in our Los Angeles store in 2002 and we show at the Guggenheim, and Miuccia &Sour” show: Art by scrawled across the top, and Shane actually had a few complaints from cus- Prada and Patrizio Bertelli set up the Sandra Nydegger and Bradford’s toothbrush and wooden tomers while they were shopping,” said Fondazion Prada in Milan for ambitious Shane Bradford and spoon drip with glossy swirls of yummy- Chris Apple, special events manager for art exhibits. To mark the opening of its a clip from Amy looking but toxic paint. Agnes b. McGinley photographs his flagship on the corner of Madison Jenkins’ “The Audrey Other artists in the show include young downtown friends in various states Avenue and East 57th Street last year, Samsara,” which Sandra Nydegger, who photographed a of undress. “We took down anything con- Montblanc asked artists such as Gary was dropped from woman’s legs set in rough outdoor land- troversial. That was maybe a little bit of Hume and Sam Taylor-Wood to embellish the exhibition. scapes, and Natasha Law, who painted censorship.” shopping bag sculptures, which were on abstract strappy shoes on a long-legged Hermès Paris, which showcases art in view at Rockefeller Center. kneeling woman in her trademark graph- a gallery at its Madison Avenue flagship, Other design houses such as ic linear style. has shown the work of photographers Ferragamo and Hermès have opened gal- “At Her Majesty’s Request,” another Yves Guillot and Bruce Davidson and the leries in or near their flagships. But piece by Jenkins is a chair with an LCD luxury goods company runs art programs there a question arises: Can a fashion monitor embedded into its velvet cush- at its other stores throughout the world. brand really show edgy or controversial ion. On the monitor are a pair of lips Robert Chavez, president and chief art when its first obligation is to the sen- that make slurping and kissing sounds executive officer of Hermès USA, said sibilities of its customers? that could be interpreted as “kiss my Hermès is careful in its choice of artists. “Sweet & Sour: A Fashionable ass” or “sit down here for pleasure,” the “There needs to be a synergy between Exhibition of Provocative Paradoxes” at artist said. the company and the artist and there the Salvatore Ferragamo Gallery at 655 “I can’t think of anything more edgy needs to be a lot of communication in Fifth Avenue, is an example of the than that,” said Clarke of the work, which advance so everyone is moving in the quandary. The show has its share of remains in the show. same direction. Generally, the artists footwear, fetishistic or otherwise. It also Many fashion companies we’re working with fit well with the has beautiful paintings with disturbing said while they’re com- Hermès culture.” undertones and works that deal with sen- mitted to art, they’re Christian Strike, whose company, suality and oral pleasure. careful not to hang Iconoclast, curates a billboard in L.A. The exhibition, which opened Arts anything on the owned by Nike that is used for art, said Tuesday and runs through June 11, invit- walls that might ruf- Nike is relatively hands-off, but ultimate- ed six artists to explore the dichotomy minute DVD of the artist breast- fle feathers. ly approves all the art choices. between sweet and sour and other ex- feeding her baby in a setting that Issey Miyake’s “Artists going to work with a corporate tremes while drawing inspiration from brings to mind an Old Master Miyake Design Stu- partner in this type of environment may the luxury brand. It was organized by painting, was dropped from the & dio Gallery in Tokyo, expect this,” Strike said. “The companies Blair Clarke, whose company, Voltz show last Monday, the day of the not far from the de- need to learn about the artists and real- Clarke, works with a roster of interna- premiere. People signer’s store, has ex- ize that they’re not experts per se, but tional emerging artists. Jenkins said she was told that “the hibited Tokujin Yoshioka, artists have to come to grips with the fact However, one piece created for the image of a baby suckling might be offen- whose work includes furniture, that their work is being shown in a com- “Sweet & Sour” will not be seen. Amy sive to some customers.” Won Kyung-Hwan’s “Altered Soil” about mercial space.” Jenkins’ “The Audrey Samsara,” a 20- Ferragamo said the show was simply soil and the memories it holds, and — Sharon Edelson

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