LVMH SALES RISE 9 PERCENT/4 WAL-MART’S CHINA PUSH/7 WWDWomen’s Wear Daily • The Retailers’TUESDAY Daily Newspaper • July 26, 2005• $2.00 Ready-to-Wear/Textiles A Delicate Situation NEW YORK — Don’t put Josef Statkus on a schedule. The Lithuanian designer prefers to introduce his hand- crocheted dresses whenever they’re finished, sometimes giving his artisans as long as 900 hours to complete one piece. And the likes of Charlize Theron appreciate it. Here, his sheer mohair dress with sequins and a grosgrain ribbon belt. Juicy Couture bracelet; Laurence Decade shoes. For more eveningwear, see pages 8 and 9. A New St. John Begins: Marie and Kelly Gray Resign Creative Posts By Rose Apodaca LOS ANGELES — The knitwear empire Marie ANT: MARIE MAURIN; STYLED BY ANTONIA SARDONE STYLED BY MARIE MAURIN; ANT: Gray built under the St. John label, starting 43 years ago, will enter its next ASHION ASSIST phase as an American luxury brand without her or her daughter, creative director and longtime face of the brand Kelly Gray. Marie and Kelly Gray disclosed Y SONJA, BOTH AT FRANK ARENDS; F FRANK Y SONJA, BOTH AT Monday that they will no longer be involved in daily operations with the Irvine, Calif.-based company, but will assume roles on its board and as a consultant, respectively. The Gray family remains a minority stockholder in the See St. John’s, Page16 AITI/MARILYN; HAIR BY KENSHIN ASANO AND MAKEUP B HAIR BY AITI/MARILYN; PHOTO BY KYLE ERICKSEN; MODEL: TEV KYLE PHOTO BY Advertisement Australian wool has never looked finer. But there’s a fly in the ointment. Recently an animal rights group What would happen if mulesing was spending millions of dollars on research launched a no doubt well-meaning but, stopped immediately? Quite simply it in the endeavour to discover an effective in our opinion, misguided attack on the would have exactly the opposite effect to solution. Hardly a positive outcome. Australian Merino wool industry. what the animal rights group intend. What’s the answer? The answer They claimed that an Australian Without mulesing, it is estimated up to is for people to continue giving farming practice known as ‘mulesing’ three million Australian sheep annually Australian Merino wool products their (pronounced mule-zing) was cruel, that would die a slow and agonizing death, support, to enable the Australian wool it should be stopped immediately and depending on the weather conditions. industry to find and trial a suitable that Australian Merino wool should not The Australian Veterinary Association alternative to mulesing as soon as be bought in the meantime. accepts this practice as necessary for possible. In the meantime, you can buy The Australian wool industry the longer term health and well-being of and wear Australian wool fashions and believes that the particular animal rights the animal. other products safe in the knowledge group has got its claims wrong and that What if people stopped buying that no one cares more for their flocks their demands would lead to endless Australian Merino wool? Once again this than Australian Merino sheep farmers suffering for sheep. Here’s why. would be totally counterproductive for and that no other natural fiber is Mulesing is the removal of a strip of animal lovers. If a boycott was ever totally as fine or as fashionable as Australian skin from the breech area (rear end) of effective it could lead to grave problems Merino wool. lambs to prevent them suffering from for the Australian wool industry. It would Brought to you by The Australian flystrike, a prevalent, dangerous and fatal also make it quite impossible for the Wool Industry. For further details please condition caused by the sheep blowfly. Australian wool industry to continue go to www.woolisbest.com 4 WWD, TUESDAY, JULY 26, 2005 WWD.COM LVMH 2Q Sales Rise 9% By Robert Murphy The LVMH results, which LVMH said Donna Karan had WWDTUESDAY come against the backdrop of “achieved new momentum,” es- Ready-to-Wear/Textiles PARIS — LVMH Moët Hennessy terrorism and economic uncer- pecially with sales in the U.S. of Louis Vuitton on Monday reiter- tainty in Europe, indicate that its DKNY brand. GENERAL ated its goal for “tangible” full- the appetite for luxury remains Total sales of fashion and Marie and Kelly Gray said Monday they would no longer be involved in daily year operating profit growth as strong. LVMH is scheduled to re- leather goods in the half grew 8 1 operations at St. John Knits, founded by the Gray family 43 years ago. chairman Bernard Arnault’s port first-half earnings Sept. 7. percent to 2.19 billion euros, or LVMH reiterated its goal for “tangible” full-year operating profit growth and firm reported second-quarter Sales in the half grew 10 per- $2.76 billion. said second-quarter sales advanced 9 percent to $3.89 billion. sales advanced 9 percent to 3.09 cent to 6.17 billion euros, or $7.78 Perfume and cosmetics sales 4 billion euros, or $3.89 billion at billion, slightly ahead of analysts’ rose 7 percent in the half to 1.03 EYE: Talking with Ziyi Zhang, who stars as prostitute Bai Ling in director average exchange rates. expectations. LVMH reported billion euros, or $1.3 billion, led 6 Wong Kar Wai’s “2046”…Conducting with Valery Gergiev…Chic of the Week. Gains were strong across all the figures after the bell at the by continued growth at Parfums Wal-Mart is opening a store in Shanghai on Thursday and plans to almost divisions and geographical zones, Paris Bourse, where shares fin- Christian Dior and double-digit 7 double its store count in China to 90 by the end of next year. led by double-digit gains at the ished trading up 0.7 percent to gains at Guerlain. BeneFit and French luxury conglomerate’s close at 68.70 euros, or $86.58. Fresh made “market share gains,” FASHION: Designers are dreaming in black and white, using tuxedo shapes Louis Vuitton brand and robust Louis Vuitton, the group’s LVMH said. 8 and details to create evening numbers that are dainty and dapper. sales in the U.S. and Asia. cash cow was propelled by prod- Despite a slowdown in Europe, Classified Advertisements ..................................................................18-19 Sales in Japan and Europe uct launches such as the Denim sales gained 12 percent in the showed resilience, driven by and Antigua bag lines. The brand watches and jewelry division to To e-mail reporters and editors at WWD, the address is Vuitton sales, finance director also profited from “strong” 260 million euros, or $327.7 mil- [email protected], using the individual’s name. Jean-Jacques Guiony said during growth in its watches, jewelry lion, with double-digit gains at Tag WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 a conference call with analysts and sunglasses, relatively recent Heuer and “excellent” sales at FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 190, NO. 18. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional and reporters. categories for the brand. Chaumet and Zenith. issue in June, July and November, two additional issues in April, May, August and December, and three additional issues in “Japan and Europe are sig- Guiony said Vuitton posted The selective retailing arm, February, March, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., nificantly better, and the United “strong” single-digit growth in including DFS and Sephora, Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill States and Asia are stronger,” the U.S., with sales building mo- gained 12 percent to 1.68 billion Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice-President_General Guiony said. mentum in May and June as euros, or $2.12 billion, as tourist Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Separately on Monday, Chris- products such as the multipocket flows remained hearty. LVMH Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: tian Dior SA, parent of LVMH Manhattan bags reached stores. said sales at Sephora in the U.S. SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS and the Christian Dior fashion Among the group’s other fash- continued to show “double-digit CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. house, reported second-quarter ion and leather goods brands, comparable-store growth.” Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four sales largely in line with the lux- Celine, Marc Jacobs, Pucci and Across geographic zones, weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001.