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FRUITS OF AN EXOTIC FAMILY TREE STEPHANIE VON WATZDORF LAUNCHES FIGUE LINE. PAGE 5 J. CREW HITS HONG KONG PAGE 4 FORGING AHEAD Burberry on Track Despite Slowdown By SAMANTHA CONTI LONDON — The luxury sector might be breathing easier as a bullish Burberry, undaunted by slower de- mand in Mainland China, said Thursday it will con- tinue to open as many as 10 stores there each year, in FRIDAY, OCTOBER 12, 2012 ■ $3.00 ■ WOMEN’S WEAR DAILY line with its original strategy. The optimism comes on the heels of a warning last WWD month of a slowdown in the company’s retail sales, which shook luxury-sector stocks and sent Burberry’s plummeting nearly 21 percent. The brand did in fact report a slowdown in revenue growth in the second quarter, due partly to declining footfall in China, but said the country’s underpinnings were solid. Burberry added it remains keen on the potential for growth in China’s fl agship markets in particular. “In Shanghai, for example, we’re not nearly at the level we should be for such a vibrant, dynamic mar- ket,” said Burberry’s chief fi nancial offi cer Stacey Cartwright, adding that the company planned to open three fl agships in that city over the next 12 months. Burberry currently has 68 stores in 32 cities in Mainland China, and the aim is to get to 100 stores in 35 cities in the medium term. Cartwright was speaking on a conference call, fol- lowing a second-half trading update and news that Burberry plans to set up an in-house fragrance and beauty division after severing ties with Inter Parfums SA in March. Burberry’s bullishness was clearly infectious, as the stock closed up 13.3 percent to 11.36 pounds, or $18.21 at current exchange rates. Revenue in the three months ended Sept. 30 grew 2.6 percent to 475 million pounds, or $751 million at average exchange rates for the period. Burberry said that a slowdown in footfall world- wide — in China and the U.K. in particular — contrib- uted to the modest growth. In the fi rst quarter, growth was 11.2 percent, and in the fi nal quarter of last year, it was 16.1 percent. Burberry said the lessening in traffi c was miti- gated by higher average transaction values, and two of the brand’s priciest lines — Prorsum, the runway SEE PAGE 11 Gift-Giving Season at JCP By VICKI M. YOUNG WHEN DOES A GIFT from J.C. Penney Co. Inc. mean more than just a gift? When it might be viewed as a coupon of sorts — or perhaps some other loyalty incentive. That’s the debate regarding the gift at the bottom of Ron Johnson’s latest e-mail letter to customers. The J.C. Penney chief executive offi cer sent out his Blue Note third monthly letter — he started the new custom in With its new scent, Eros, the house of Versace plays with the many moods of blue. August — to consumers Thursday morning, but this time This time it’s not depression, but unbridled sexuality — not to mention the color of included an invitation at the bottom to visit the “new and improved jcp.” the Mediterranean sea, a reminder of the Versace family’s origins. But the hue could Johnson wrote: “Our goal is really pretty simple — we come to symbolize happiness if industry sources are right about its sales: It could do want to help you look and live better every day, while $100 million at retail globally in its fi rst year on counter. For more, see page 6. bringing back the fun of shopping.” After an update of some changes that took place over the past month, Johnson said, “I’d like to invite you in to your favorite jcpenney store to see the changes firsthand. As an incentive, I’m enclosing a $10 gift. Think of it as a thank-you from jcp for your loyalty through the years.” The invitation has a bar code for scanning that offers a “$10 off gift valid for one-time use on a single in-store purchase of $10 or more.” Valid for use between Oct. 11 and Nov. 4, the gift also has certain restrictions such as not being valid for jcp.com orders or for certain purchas- es such as Sephora-related merchandise or gift cards. According to a company spokeswoman, “In the month- ly letters Ron has sent to customers, he has requested PHOTO BY THOMAS IANNACCONE their feedback. Through this feedback, we learned that SEE PAGE 4 2 WWD FRIDAY, OCTOBER 12, 2012 WWD.COM Expanding Pomellato Hints at IPO THE BRIEFING BOX over by a conglomerate such as PPR, frequently By LUISA ZARGANI rumored to be interested in Pomellato, Morante IN TODAY’S WWD said it is “normal” as the number of global and in- MILAN — Italian jewelry firm Pomellato is eyeing dependent jewelry brands in the range of Pomellato brand extensions with watches and a fragrance, has is not large. However, Morante said the Rabolini plans to further develop the Asian and American family, which owns the brand, is not looking to sell. markets and is evaluating a public listing. “We “Of course, it’s up to the founder [Pino Rabolini], Elle Fanning at the are thinking about it, it’s one of the possible hy- but [the owners] are happy to be independent,” Chanel party. potheses for Pomellato,” said chief executive offi- said Morante. In fact, the executive said Pomellato cer Andrea Morante during the first “Luxury and has expressed interest in buying the 18 percent of Finance 2012” meeting at the Milan shares owned by the Damiani family, which Stock Exchange on Thursday. last year assigned Mediobanca a man- During the event, which, among date to explore offers. “But we never its goals, aims to draw companies to reached an agreement,” he explained. consider an initial public offering, Pomellato is expected to close 2012 Pomellato and Brunello Cucinelli with sales of 151 million euros, or $194.4 EICHNER presented their brands to the interna- million at current exchange, up 9.7 per- STEVE tional financial community. Meetings cent compared with last year, and up 50 BY with management from Luxottica, percent from 2009. Gross profit is fore- Marcolin, Poltrona Frau, Salvatore cast to reach 14.2 million euros, or $18.3 PHOTO Ferragamo, Tod’s and Yo o x were also A Pomellato bracelet. million, up from 13.5 million euros, or Burberry said Thursday it will continue to open as many held but not open to the press. $18.7 million at average exchange, in as 10 stores in Mainland China each year, in line with its Morante, a high-profile entrepreneur-cum-in- 2011 and earnings before interest, taxes, depreciation original strategy. PAGE 1 vestment banker, has been eyeing a listing for some and amortization, or EBITDA, are expected to total time, and was asked on the sidelines of the presen- 22.5 million euros, or $29 million, compared with 20.1 J.C. Penney chief executive officer Ron Johnson sent out tation if the venue marked a deeper interest in the million euros, or $28 million, last year. his monthly letter to consumers Thursday, which included Bourse. Morante did not set anything in stone, but The company has been investing in retail, dou- an invitation to visit the “new and improved jcp.” PAGE 1 said he was intrigued by the successful Brunello bling the number of stores over three years, which Cucinelli IPO earlier this year. “We share a similar are expected to total 87 by December. Exports in J. Crew is reentering the Asian market with an edited dimension and a luxury product, so it is a reference 2012 are slated to account for almost 57 percent of collection of its women’s and men’s wear at Lane Crawford point for us,” said Morante, who added he was plan- sales. Sales in the U.S. in 2012 are expected to ac- stores in both Hong Kong and Beijing. PAGE 4 ning to compare notes with Cucinelli. count for 12.1 percent of total revenues compared Responding to questions about a possible take- with 6 percent three years ago. Brian Atwood’s first flagship will open today at 655 Madison Avenue in New York. PAGE 4 Leonardo Ferragamo has rushed to the defense of his Printemps Sets First Openings Since ’82 hometown, Florence, following disparaging comments about the city by Fiat Chrysler’s Sergio Marchionne. PAGE 4 PARIS — French department store chain Printemps “We are starting just now to work on it from a plans to open two new stores in 2014, marking first new commercial standpoint, from a design standpoint, so Versace will launch Eros, its first men’s fragrance in five additions to its retail network in more than 30 years. I think early next year we should be able to commu- years, with a zinger that’s a bolt out of the blue. PAGE 6 Printemps chairman and chief executive offi- nicate a bit more on how we intend to position this cer Paolo de Cesare said an administrative com- store,” he added. The up-and-coming brand E.l.f. Cosmetics is gaining mission has approved the retailer’s plan to open a In addition, Printemps plans to open a two-story, traction by taking the road less traveled — first launching smaller-format department store in the Carrousel 64,500-square-foot store within the seafront Terrasses online and then building its retail business. PAGE 6 du Louvre shopping mall adjacent to the Louvre, du Port mall in the southern French city of Marseille the world’s most visited art museum with close to 9 in 2014.

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