The Dark Knight
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DAISY’S DECADE PARIS IN THE EAST TUBE DIOR MOUNTS EXHIBITIONS IN TALK SHANGHAI AND HONG KONG. PAGE 8 MACY’S LINKS WITH YOUTUBE NETWORK STYLEHAUL TO CREATE VIDEOS TO APPEAL TO MILLENNIALS. PAGE 2 PLOTTING THE FUTURE Hudson’s Bay Sees L&T, Saks Expansion By EVAN CLARK HUDSON’S BAY CO.’S deal to acquire Saks Inc. is on track and Richard Baker is busy crafting his plan for how the two companies will be brought together. Baker, chief executive officer, told analysts on Hudson’s Bay’s second-quarter conference call that he FRIDAY, SEPTEMBER 13, 2013 ■ $3.00 ■ WOMEN’S WEAR DAILY was exploring, among other things, a broader rollout of its Lord & Taylor outlet stores under Saks’ Off 5th umbrella. WWD Lord & Taylor currently has only four outlet stores. The ceo also sees opportunities to bring seven Saks full-line stores and 25 Off 5th Stores north of the border and to realize some of the value locked up in the real estate portfolio of the combined companies. “Our footprint will cover all of North America, north to south, east to west and nearly all major metropolitan markets,” Baker said, speaking of the two fi rms, which expect to merge later this year in a $2.9 billion deal. Saks’ “go-shop” period under the agreement ended last week and the fi rm reported that no new bidders The Dark came forward. Government offi cials also signed off on the deal under antitrust laws. The buyout might also bring Hudson’s Bay, which trades on the Toronto Stock Exchange, to Wall Street. Chief fi nancial offi cer Michael Culhane told WWD that Knight the fi rm might list its shares in New York at some point. “The biggest thing is, you want to add more trading His set a ravaged beach and boardwalk, in the stock, which creates liquidity for people who Marc Jacobs closed fashion week with want to go in and out of the stock,” Culhane said. “It’s defi nitely one of the things that we want to do if the a stunning collection in a dark, heavy right opportunity and the right interest are there.” palette that was part Victorian, part The combined company will have 179 full-line dystopian surf with every bit of it dripping stores, 73 outlet stores and 69 home doors and three e-commerce sites, which all together produced sales in adornments. Here, a navy and brown of about $7.2 billion last year. The business combina- embroidered lace dress. For more from tion is also expected to unlock $100 million of annual cost savings within three years. the shows, see pages 4 to 7. Baker also acknowledged the increasing competi- tion for the Canadian high-end shopper. SEE PAGE 8 SPRING 2014 NEW YORK Lululemon Shares COLLECTIONS Fall on Warning By ARNOLD J. KARR THE ONGOING EFFECTS of the black Luon yoga pant recall might haunt Christine Day through the re- mainder of her tenure as Lululemon Athletica Inc.’s chief executive officer. Despite reporting second-quarter profits that were down less than expected and better than the company’s or Wall Street’s estimates, shares of the Vancouver-based apparel marketer fell $3.75, or 5.4 percent, to $65.27 Thursday after it lowered its profi t and sales guidance for the year. During a conference call, John Currie, chief fi nancial offi cer, tied the lowered guidance to the fi rm’s recall, dating back to March, and the domino effect it has had on assortments since then. As the company focused on restocking fi rst-quality Luon product, other deliveries lagged. “While we were successful in getting back in stores with Luon, the effort required to get there had a lingering impact on our commercialization and sourc- ing team’s ability to be ready to hand off to our vendors the current season. We anticipate this knock-on effect to continue to impact timing of product deliveries in [the third quarter] and through the balance of the year.” Full-year earnings are now expected to be in the range of $1.94 to $1.97 with revenues of between $1.63 billion to $1.64 billion. The June guidance was for earnings per share of $1.96 to $2.01 and revenues of $1.65 billion to $1.67 billion. Day, who said in June that her tenure as ceo will end upon the appointment of a successor, said during the call that the search for her replacement is continuing, PHOTO BY GEORGE CHINSEE SEE PAGE 8 2 WWD FRIDAY, SEPTEMBER 13, 2013 WWD.COM Macy’s Millennial Push Hits YouTube THE BRIEFING BOX By RACHEL BROWN IN TODAY’S WWD MACY’S INC. is reaching out to Millennials through YouTube. The department store has linked with StyleHaul, a network of fashion and beauty YouTube chan- nels, to create online videos launching Monday by four YouTube personalities — DulceCandy87, or Dulce Candy Tejeda; Carlibel55, or Carli Bybel; Sarahbelle93x, or Sarah Eichelberger, and Carly Cristman — to promote its merchandise aimed at Millennial customers. Although Macy’s has placed its own videos on YouTube before, this effort marks the first time the retailer has loosened its reins on the content by working with outside YouTubers to spot- “Mixing the really raw things light its apparel, accessories and beauty products. with…couture references “We have given the four video bloggers as much [and the] Fifties and Sixties.” latitude as we can to take a look at Macy’s and — Michael van der Ham JENKINS what they might shop for at Macy’s, and to come For more London TIM up with content that is a reflection of their impres- Inspirations, see WWD.com. BY sion of Macy’s, with the hope that their individual PHOTO fan bases will be more excited about shopping at Macy’s has enlisted four YouTube personalities to help Macy’s when they hear one of the vloggers they fol- reach out to Millennials. low had a great experience with us,” said Jennifer Hudson’s Bay Co.’s deal to acquire Saks Inc. is on track Kasper, group vice president, digital media and Each YouTuber chosen for the Macy’s initia- and Richard Baker is busy crafting his plan for how the two multicultural marketing at the retailer. She added tive has her own style profile that interested companies will be brought together. Page 1 that Macy’s believes its assortment speaks to shop- the department store. Horbaczewski noted that pers in their teens and 20s, but conceded, “The Eichelberger is preppy and has a girl-next-door The ongoing effects of Lululemon Athletica Inc.’s yoga pant challenge we have is putting ourselves on the radar sensibility. Tejeda is a free-spirited and casual recall seem likely to linger beyond Christine Day’s tenure as screen with Millennials. We felt that the content mom. Bybel is “always extremely polished and chief executive officer. Page 1 that is being created here could bridge the gap.” made up to the nines,” according to Horbaczewski. The effort also marks a first for StyleHaul, which Cristman is the enviable type who can pull off most Dior just capped off a week of activity in China with back- tapped the resources of its newly formed agency outfits, whether they are centered on sparkly, short to-back events in Hong Kong and Shanghai, inaugurating art and production house, StyleHaul Studios, to de- evening gowns or shorts and booties. Together, Page 8 velop for brands videos that don’t look slapped to- the four YouTubers’ channels have nearly 2.6 exhibitions and reaching out to wealthy consumers. gether in a bedroom, as so many on YouTube do. million subscribers and 303 million views. When During the shoot for Macy’s, for example, a five-per- they tweeted and posted on Instagram from the Stephanie Solomon has been named vice president and fashion son crew filmed the videos and professional editing Macy’s shoot about three weeks ago, those social director of women’s ready-to-wear at Lord & Taylor. Page 8 helped with the final touches. The videos “are truly media hints at the larger Macy’s campaign gener- this hybrid between premium content and what the ated more than 4 million impressions and almost The eye for detail that has made Troy Surratt a favorite of girls are already making,” explained Stephanie 100,000 engagements with the content. Adele and Charlize Theron will soon be visible in the makeup Horbaczewski, StyleHaul’s president and chief ex- Partly to attract Millennials, Macy’s has been in- artist’s first signature beauty collection. Page 9 ecutive officer. “If you are watching it on their chan- creasing its digital ad spend. In total, the retailer’s nels, you would never think they were not involved advertising expense was $1.18 billion last year, up Two new senior executives have been named for Chanel with the creation of the content, and if you were slightly from $1.14 billion in 2011, and it is estimat- Inc.’s U.S. Fragrance & Beauté Division and will assume watching it on a premium channel, you would never ed Macy’s has allotted at least 12 percent of its ad their duties in November. Page 9 not think it was premium.” budget to the digital space. Twitter sent out a tweet Thursday afternoon alerting that it has confidentially submitted an S-1 to the Securities and Wooster Buys Stake in Atrium Exchange Commission for a planned IPO. Page 9 Sophia Amoruso, founder and chief executive officer of Nasty ing fashion trends has gotten increasingly difficult.