Daily Edition december 22, 2016 1

Take Two Betting Big on Retailers Blink Brioni opens multifloor Beauty First flagship at Madison CVS is getting behind Markdowns rise as Avenue and 62nd Street emerging cosmetics and holiday shopping shifts in New York. skin-care brands. later and later. Fashion. Beauty. Business. Page 6 Page 11 Page 12

business Carolina Herrera Sues Oscar De la Renta ● The designer is seeking to stop Laura Kim from joining the rival fashion house as co- creative director until April.

By WWD Staff Carolina versus Oscar. In a battle pitting two grand names in American fashion — Carolina Herrera and Oscar de la Renta — Herrera has sued de la Renta in the Supreme Court of the State of New York over a young designer who has helped each brand inject a more youthful air into their collections: Laura Kim, who founded the Monse brand with Fernando Garcia. Herrera on Wednesday filed a lawsuit seeking to block Kim from joining de la Renta as co-creative director with Garcia. The duo was named creative directors in Continued on page 12

business Berkshire Takes Kendra Scott Stake ● The founder of the Austin-based accessories brand retains majority control of the business.

By Evan Clark

Kendra Scott found her new partner. Private equity firm Berkshire Partners That acquired a minority stake in Scott’s hot Austin-based accessories brand, bringing ythiel to close one of the more closely watched auctions in fashion. WWD reported Dec. 8 that Scott was drawing the interest of big-name investors in a Jefferies-run auction that could poten- Seventies Show tially value the company near $1 billion. The chic geek is the leading character in spring outerwear. That infamous shade The final sale price was not disclosed and of brown that screams Seventies, with distinctive panel detailing, was one of the sources close to the process could not

ll jewelry: B A ll jewelry: A nderson; J.W. ; A ll shoes: immediately be reached. A season’s most defining statements, as seen in this Neil Barrett jacket. The brand, which mixes accessible For more on the cropped jacket trend, see pages 4 and 5. accessories with social-media savvy and a philanthropic bent, is something that’s orter at M S orter photograph By Andrew Jacobs become a rare commodity on the fashion dealmaking scene — a growth story. Inves- tors are always keen on companies that

M odel: William P Continued on page 3 ADVERTISEMENT

Studios Ultimate Holiday Gift Guide A curation of the must-have gifts of the season from jewelry to gadgets and everything in between, brought to you by Marni Harvey, the NYC based influencer and Creative Director of Style on the Rise

@styleontherise

SHOP HERE december 22, 2016 3

business

Kellwood Sold to Hong Kong Investor Group T o p 5 ● David Falwell returns to firm as chief executive officer. Trending By Vicki M. Young with contributions on WWD.com from Lisa Lockwood

Kellwood Co. is now under Asian ownership. The apparel manufacturer has been acquired by a Hong Kong-based private equity firm for an undisclosed amount from U.S.-based private equity firm Sun Capital Partners. Kellwood said in connection with the acquisition, David Falwell is returning to the company as chief executive officer. Falwell left Kellwood in 2013 after a 29-year career at the firm. At the time, Falwell was executive vice president of operations. He succeeds Joseph Lom- bardi, who was named ceo of Kellwood Rebecca Taylor’s Miami store at the in January 2015. Lombardi is leaving the Aventura Mall. Rebecca Taylor and company to seek other opportunities, Parker are not part of the acquisition. according to a Kellwood spokeswoman. Caren Belair, a 33-year veteran of company. Rebecca Taylor, Parker and In its heyday, Kellwood’s sales surpassed Kellwood, will continue as the firm’s Zobha were acquired while Kellwood was $1 billion, and under the leadership of president. Xiaopei Chin, a 10-year veteran under Sun’s ownership. Sam Edelman, William John McKenna, Kellwood made of the firm, was named president of the which licensed its sportswear collection several acquisitions, including Smart western region. to Kellwood in February 2014, no longer Shirts, Cape Cod Cricket Lane, Goodman Falwell said, “We believe there is tre- has a deal with Kellwood. Knitting Co. Inc., and Parsons Place mendous growth potential for Kellwood’s Rebecca Taylor and Parker are not part Apparel, which was renamed Sag Harbor Sources: Jared businesses, and this acquisition will allow of the transaction and will remain as affil- in 1994. The Sag Harbor IP was put up the company to leverage its existing rela- iates of Sun Capital. Janice Sullivan, presi- for sale in January 2015. Before that, in Kushner Quietly tionships in Asia to grow its businesses dent of Rebecca Taylor, has been elevated March 2012, Kellwood put up for sale its and increase profitability.” to ceo of Rebecca Taylor and Parker. Koret apparel brand. Founded in 1938, Tries to Sell New Falwell added “Together with a strong Rebecca Taylor was acquired in 2011. the brand was known for coordinating investor group that believes in the com- The designer is still with the firm, although tops and bottoms and was once a $200 York Observer pany’s growth potential, I believe that her business partner Beth Bugdaycay left million brand, but posted net sales of ● According to insiders, Kellwood has a bright future and is better the business in December 2014. Sullivan just $12 million in 2011, mostly from sales Kushner has been quietly positioned than ever to serve its retail was tapped as president of the contem- in catalogs and midtier retailers. partners and consumers.” porary sportswear firm in August 2015. At Kellwood’s main office is based in shopping the Observer to Kellwood’s apparel brands — My that time, the business was generating $75 New York, although its St. Louis office potential buyers. Michelle, Jolt, Rewind, Democracy, million in wholesale volume. houses the finance, accounting, legal and Sangria, JAX, Briggs New York and XOXO Parker, another contemporary brand, information technology teams. It also ● — target the women’s and juniors fashion had volume of around $50 million at the has a Western Region in City of Industry, Makeup Artist Bobbi segment. time of its acquisition in 2014. Howard near Los Angeles, now headed by Xiaopei Brown Ending a Chapter Sun Capital acquired Kellwood in 2008 Highman, ceo at the time, has since left Chin. The West Coast site houses a state- for $762 million. Since the acquisition, the company. of-the-art pattern and sample making ● Year in Fashion: The Social Sun has sold the yoga brand Zobha and Kellwood was formed in 1961 by the room, as well as West Coast showrooms, Media Influence Peddlers spun off Vince in an initial public offering merger of 15 independent suppliers of sales and design teams and product on November 22, 2013. Both were under soft goods to Sears, Roebuck & Co. The development. According to a spokes- ● Beauty’s Top Influencer: the Kellwood umbrella. Vince was a part merged entity at the time had 22 plants woman for Kellwood, they also have a Zoella’s Zoe Sugg of the portfolio when Sun acquired the across 10 states and 7,000 employees. Hong Kong office. ● Queen Elizabeth Passes 25 Patronages to Younger Royal Family Members

Kendra Scott, right, celebrates age in a blue-collar community, I saw the Berkshire Takes the 2015 launch of her brand magic of fashion,” she said, noting her Kendra Scott Stake in Bloomingdale’s in New York. aunt was a buyer at a local department store. “I went to school for business and continued from page 1 marketing, but I had the fashion bug.” NEWSMAKERS At 19, she opened a shop called The Hat Box. The store was shuttered, but This Week’s Most she bounced back. Talked About Names have a proven customer base and plenty And big time. of room to expand. In addition to accessories, the brand In Our Industry Kendra Scott has more than 50 doors sells home goods and nail polish. A and a core base of strength in Texas program dubbed Color Bar helps engage and Oklahoma, along with a presence at consumers in stores and online by letting Neiman Marcus, Nordstrom, Blooming- them craft personalized jewelry. dale’s, Von Maur and more than 600 spe- Prices vary, with rose gold pendant cialty boutiques globally. The company said Marni Payne, a managing director necklaces selling at $65, pavé diamond was said to have been looking for addi- at Berkshire Partners. “The company’s and yellow gold earnings at $750 and a tional funds to help it expand toward the deep focus on its customers, commit- cuff bracelet in pavé diamond and yellow Carolina Herrera Jared Kushner coasts and to get into other categories. ment to product innovation and culture gold for $1,500. Scott, who founded the company with of giving back has led to impressive Scott said on Wednesday of her new $500 in a spare bedroom in 2002, will growth. We look forward to partnering investor, “Berkshire has significant continue on as majority shareholder with Kendra and her team to support experience in helping leading brands and chief executive officer and the firm’s their continued success.” maximize their potential and a deep leaders will remain in their current posi- Scott, who has 464,000 followers on appreciation for the Kendra Scott culture tions. Norwest Venture Partners, which Instagram and clearly the attention of and organization.”

RE X/Shutterstock M ichael B uckner/Variety/ Lim by RE X/Shutterstock; nyc.com/ BFA by G ibson / RE X/Shutterstock; H ilty/ BFA Zach by H errera AP / RE X/Shutterstock; and Kaster/ RE X/Shutterstock Lovekin/ Stephen by Kushner / RE X/Shutterstock; BFA Kobane/ yan bought a stake in the business in 2014, the financial set, has been raising her The investment firm has made more will continue to hold a minority stake. profile lately. than 115 investments since 1986 with Ted Gibson Chriselle Lim Norwest and Scott were said by She sketched out her story for the more than $16 billion in aggregate sources to be the sellers in the process. crowd at a WWD forum event last year. capital commitments. Its other retail “Kendra and her team have built an “Farmers and coal miners are my investments have included Aritzia, Bare

Scott photograph by R by photograph Scott authentic brand that is widely loved,” family in Kenosha, Wis. At seven years of Escentuals, Carter’s and Party City. 4 december 22, 2016

Trends Bottega Veneta’s cotton and baby calf light Cropped velvet jacket; Neil Barrett’s viscose and Jackets nylon sweater, and Tim Coppens’ wool pants.

Lanvin’s wool outer jacket; Andrea Pompilio’s nylon jacket; Cos’ technical rib knot sweater; Brooks Brothers’ cotton A Tight Crop turtleneck, and Dries Van Noten’s wool pants. Retro Seventies references and heritage plaids are key inspirations influencing the cropped jacket for spring. By Alex Badia photographs By Andrew Jacobs december 22, 2016 5

Trends Cropped Jackets

Dsquared’s polyester outer jacket; Missoni’s cotton, wool and polyester inner jacket, and Christopher Kane’s wool pants.

Neil Barrett’s leather jacket; Ami’s wool sweater and cotton pants, and Brooks Brothers’ cotton turtleneck.

Edward Crutchley’s wool jacket and shirt; 22/4 Hommes’ cotton tank, and Missoni’s cotton pants. Bottega Veneta belt.

Model William Porter at MSA; All shoes J.W. Anderson; All jewelrY Bythiel

Lanvin’s satin jacket; Maison Kitsune’s polyamide jacket. 6 december 22, 2016

men’s Brioni Opens Flagship on Madison Ave. ● The 5,974-square-foot store is located on the corner of 62nd Street and Madison Avenue.

By Jean E. Palmieri

NEW YORK — Brioni is taking its lux- ury Italian aesthetic to Madison Avenue here with the opening of a two-level, 5,974-square-foot flagship on 62nd Street. The store is the second iteration of a David Chipperfield Architects Milan design that launched in Paris in July on Rue Saint-Honoré. But Gianluca Flore, chief executive officer of the Ker- ing-owned Brioni, said the layout of the New York store allows for a fuller expres- sion of the design. “It’s even nicer than Paris,” he said. “That fact that it is two full floors allows for the concept to express itself in a better way.” The Paris store is also on two levels, but one is below ground. The New York store, which opens Thursday, replaces a smaller unit on 57th Street that closed on Sunday. The flagship was intended to open in late October, but The new Brioni flagship construction delays, due in part to the fact on Madison Avenue. that the location is a residential building, pushed back the opening date. architecture. But the cursive script spell- Madison Avenue windows. linked to the DNA of the brand but with a The opening of the store comes as Brioni ing of the brand name is gone, replaced Upon entering, a few suits are hung fresh environment.” is in the midst of another reboot after a with the controversial Gothic lettering front and center and the rest of the floor He said the large size of the store tumultuous 10 months. It parted ways with that O’Shea championed during his short offers clothing, sport shirts, sweaters, allowed Brioni to create a special VIP area its then-creative director Brendan Mullane, tenure at the label, but that the brand says jeans, dress shirts, ties, shoes, small for its bespoke service — perfect for long- tapped Justin O’Shea as his successor, and is a reworked version of its historic logo. leather goods and sunglasses. The upper time bespoke client President-elect Don- then pushed O’Shea out after six months Lighting is housed in the ceiling, there level focuses more on tailored clothing ald Trump — oversize fitting rooms and an following pushback from retailers and are rosewood cases and timber paneling to and includes a bespoke area at the front. airy environment that is appropriate for a customers over O’Shea’s attempts to make distinguish the different areas. The fitting rooms are large and the walls brand whose off-the-rack suits can retail the storied brand “edgier.” A stairway between the two floors is are covered in vintage leather designed to for less than $5,000. Bespoke suits start at Flore said the store may offer a few also created from the Travertine and large look like upholstery that would be used in around $7,000 and go up from there. O’Shea designs, but the bulk of the windows on both floors allow for natural Sixties cars. The store is also intended to plant a offering will be the more-sedate high- light to complement the interior space, Overall, the store is airy and modern stake in the ground in the U.S., which end tailored clothing, sportswear and although frosted shades are used on the with no racks full of merchandise to accounts for about one-third of the brand’s accessories that have become a hallmark upper level. obscure its design. It has two entrances, on global business. of the label since its founding in Rome in On the second floor, a special plaster is Madison Avenue and 62nd Street, and is Flore said after a tough 2015, sales have 1945. “We will have the entire lifestyle,” used to provide a textured finish. located across the street from Hermès and improved here and in fact, Brioni experi- he said. Throughout the store, there are velvet near the soon-to-open Tom Ford store. enced “a strong recovery” starting in the The store design also speaks to the seating areas and other furniture from Flore said Brioni’s store “enhances the June-July period. “We’ve seen a better “roots of Brioni,” Flore said. It features 20th century architects including Albini brand’s Roman roots with a contemporary trend,” he said. “Our loyal customers gray Travertine floors and walls and and Mies van der Rohe. For the opening, a undercurrent.” And the design offers the are coming back and buying with more colored marble columns that are intended moving tailoring machine, complete with “same quality and details as we put in our confidence.” to be reminiscent of ancient Roman gold spools of thread and thimbles, fill the garments. We created an environment Business improved even more after the U.S. presidential election, he said, which is “a very good sign.” Brioni has also been successful in attract- ing a different customer and is appealing to men from their mid-30s to 50 in addition to its older core shopper, he said. Flore said the plan is not to add to the store count in the U.S., which includes 10 stores in Bal Harbour and Palm Beach, Fla.; Las Vegas; Beverly Hill; Chicago and Washington, D.C. (There are also 49 stores around the world in Europe, Asia, the Middle East and other countries.) Instead, the goal is to increase compara- ble-store sales in its own stores as well as with its wholesale partners, which in the U.S. include Neiman Marcus, Saks Fifth Avenue, Barneys New York and others. But while the store count may not change, Flore said Brioni is still expecting to bring on a creative director to succeed O’Shea and design the brand. “We’re con- sidering and looking for the right person to fit within the strategy of the brand,” he said. Although he provided no time frame, he said: “We will appoint someone.” For now, the focus is on the New York store. “Our position in America is to refer- ence the iconic elegance of the brand that is recognized by our customer as having style, elegance and quality,” he said. “And we want to make sure we give them an excellent experience too — that’s why we

invested in New York.” M orales A ndrew by P hotographs december 22, 2016 7

sponsored Business Insights

Executive Q&A You mentioned the need for insights with Daniella throughout the process. spotlight On fashion apparel Ambrogi, vice Will you explain this? Often people involved in president of the development of a new marketing at collection act as isolated Lectra. islands — they end up not contributing to the full ● What are the main potential of a project. Today Brands Get challenges in today’s new business models fashion business? demand more integration The fashion world is and collaboration. This inte- fiercely competitive with gration brings necessary rival brands competing to insights so a company can Lean and Mean outdo each other on price, make a difference in the design, innovation or sheer marketplace. This integra- variety of products. In tion is made easier by tech- order to keep a competitive nology, which connects advantage, brands need people and enables them Companies are turning to product-lifecycle management to ensure they produce to follow the process in real systems to help speed up their supply chains. By ELIZABETH DOUPNIK fresh, relevant collections time. Integrated platforms that consumers demand. have made it possible and We are moving toward a have become essential level of connectivity where in a time when the world Fueled by dramatic shifts in the The disruptive nature of fast fashion and a desire for everything from machines is experiencing its fourth market, product-lifecycle manage- “see-now-buy-now” is perhaps good medicine for many industrial revolution. to systems to data and ment systems serve as an integral of the more traditional fashion brands. “Use disruption as analytics are connected What kind of insights in the cloud. The right do these platforms market component for successful business questions about the business to address the company’s cul- partnerships aligned to generate? analysis models — models that are tradition- ture. Attack yourself before someone else does,” said Matt the right innovations will To successfully design, ally fashioned to support supply Laukaitis, managing director of U.S. at SAP North America, enable fashion and apparel manufacture and deliver chains that function on a nine- during the WWD Digital Forum in October. companies to turn these fashion collections month or one-year turnaround for Younger companies like Warby Parker and Everlane have challenges into opportuni- that consumers want, product development. As consumer championed not only efficient supply chains, but transpar- ties, enabling Lectra to help it’s crucial for brands appetite for new trends and accessible products grows, ent ones. It’s a one-two punch: ethos-conscious companies its customers succeed in to have a streamlined with visible supply chains that quickly unroll next waves of this fast-evolving industry. process throughout their manufacturers are straining to keep step with shopper How can you predict whole supply chain. From expectations — and create leaner, faster supply chains. merchandise are a consumer’s dream. What’s to be learned consumer demand? ensuring cost-effective Customers are on the hunt. Brand loyalty is arguably at from these swift start-ups is in their lean processes that don’t Predicting how a season design to negotiating with an all-time low, informed by Millennials and Gen Z-ers. The compromise product quality. In other words, don’t work will go is incredibly difficult. suppliers and delivering The same goes for pre- products in line with fore- dicting how consumers will casts, it’s important to see respond to new collections what’s happening at every and whether retailers will stage. Through lifecycle sell enough units to reach management platforms, revenue targets. It can be professionals can get challenging to keep up with complete visibility into consumer trends without budgeting and reporting, harnessing insights making them easier to throughout the whole understand. It’s now possi- process. It’s a juggling act ble to manage budgets of to manage production in every collection in line with line with forecasts, though financial forecasts. That technology helps compa- way you can ensure you nies face such challenges have the best margins at and in a very effective all stages. It has become way. Additionally like any feasible to identify poten- business, fashion brands tial issues at every stage need to remain profitable. of production, meaning But with rising costs from decisions are made earlier materials to wages to ship- and responded to accord- ping, fashion companies ingly, should profitability need to control costs and be at risk. make their processes as Does this concept efficient as possible. also apply to the work of What about changes fashion designers? harder, work smarter. in the global economy? This increased visibility In an effort to emulate the business model of these enables everyone from How are they affecting novice successes, department stores like Neiman Mar- the industry? planning and design to Changes in the global product development cus are tapping executives from fast-fashion, mass-mar- economy also increase the to see how designs are ket and e-commerce companies. The Dallas-based challenges for the fashion progressing. Teams can retailer appointed Michael Fung as interim chief industry. Companies need share and collaborate financial officer. Fung logged 11 years at Wal-Mart in to adapt to fluctuations in more easily, reduce errors addition to a stint as chief financial officer at 99 Cents Only currencies, rising wages in and make the whole design Stores. British jewelry brand Monica Vinader recently manufacturing countries, and validation process named Erica Allen as commercial director. Allen formerly and global instability. more efficient. As a result worked at e-tailers like Farfetch.com and Net-a-porter.com. Combined with changing fashion designers can regulations and trade assess much earlier in demographics prioritize ethos and cost over the traditionally Retailers that tap talent from corners of the agreements, it is more the process whether their perceived prestige of a luxury fashion house or even their for- industry where they’re looking to infiltrate will challenging than ever to designs are commercially merly favorite brand. “The Retail Perceptions, The Next Gen- benefit vastly. ■ run a successful, profitable viable. And with complete eration of Retail” report released by Interactions Consumer fashion business. The mar- visibility over all costs, it is Marketing and Peanut Lab said “72 percent of Generation Z ket demands integration so possible to design to cost shoppers will switch from their favorite brand if they find a companies can master the and ensure the profitability similar product for a lower price.” entire the product lifecycle. of each collection. Hence, the attraction of fast-fashion retailers, which are Zara has inventory planning more nimble, and frequently model supply chain infrastruc- tures as tech start-ups rather than established retailers. As for only 15 percent of sales Powered By: a recent L2 report noted, Zara, for example, has inventory planning for only 15 percent of sales volume. The rest is volume. The rest is based on

based on demand culled from data analytics of its shop- M onteiro C arlos by I nfographics very; pers. So as fast fashioners such as Zara and H&M continue demand culled from data to deliver high volumes of product on short turnarounds, analytics of its shoppers. dam A traditional fashion apparel brands are faced with the chal- lenge to reclaim their market leadership in terms of design,

specifically new trends that are pioneered every season. A by I llustration 8 december 22, 2016

Fashion Apparel Market by the Numbers friction points sponsored Eliminating Lectra Top Apparel, Accessories Solutions and Luxury Goods Companies Supply-Chain Friction ● Digitalization and the The changes in the apparel market Industry 4.0. We are moving Ranked by Annual Revenue toward a level of connectiv- (in U.S. Millions) are forcing brands to rethink how they ity where everything from develop products and collections. machines to systems to data and analytics are connected ● The flattening of fash- more sophisticated PLM and in the cloud. The right ion’s seasonality along with SCM platform solutions that partnerships aligned to the Key Apparel the explosive growth of fast are more fully integrated as right innovations will enable Market Trends fashion and the “see now, well as new, more advanced fashion and apparel compa- buy now” trend are redefin- manufacturing equipment. nies to turn these challenges ¬ The “see now, buy now” ing how apparel brands bring For the apparel companies into opportunities. Lectra phenomenon is transforming how products and collections to not making these invest- is committed to helping its designers present collections to the market. ments, navigating in the customers to succeed in this the market From a supply-chain current landscape has been fast-evolving industry. management and prod- nearly impossible. Persistent Waste and more ¬ Technology is helping reduce uct-lifecycle management issues for the non-adopters efficient use of mate- apparel lead times, which have perspective, these changes include lost sales, eroded rials: Lectra has helped been reduced to one to three are challenging fashion gross margins, fabric waste, customers for years to months from six to nine months brands on a most fundamen- a lack of visibility in the reduce manufacturing tal level. supply chain and — for the waste with technologies ¬ That same technology is being Every touch point in the larger apparel firms in par- such as Optiplan, Lectra’s coupled with other processes to PLM process is affected. ticular — difficulties planning proprietary order planning create lead times with fast fash- From requests for quotes collections across different and optimization solution; ion firms that range from three to and sample requests to brands, product segments the marker-making solution four weeks purchase orders and sourc- and divisions. Diamino Fashion; and Vec- ¬ The plus size market is ing materials, the demands On the IT front, internal tor, Lectra’s fabric-cutting expected to grow 3 percent in on apparel companies are and external communica- technology. Versalis, Lectra’s 2016, to amplified by shoppers who tions that occur across precision leather cutting about $10 billion want to buy apparel that is global time zones are also solution enables suppliers to in-season and on-trend — pressured by the demand achieve substantial material Source: WWD reports, IBIS and at the right price point. for shorter lead times. It’s no savings with maximized Moreover, meeting these longer acceptable to wait yield, enhanced productivity, demands has to be done a day to get an approval reduced labor costs and while controlling costs and on a garment care label. consistent quality. maintaining gross profits. Product information has to Optimizing entire end-to- What’s most difficult be updated in real time and it end processes is that this new consum- needs to be visible to the key Next generation dash- boards enable effective planning of collections from The goal is to be the big picture down to the smallest details. All CAD lean and fast. tools can be integrated eas- ily into the platform, enabling $1.2T businesses to link targets, Total, Global Apparel and Accessories Sales er-centric environment has people and vendors involved schedules, and develop- created numerous friction in the PLM process. This has ment activities. This brings points for fashion brands, given rise to the need for real-time data sharing to with the most overwhelming more improved product data life, improving collaboration, being the need to drastically management. avoiding bottlenecks and reduce lead times while From a business overlapping tasks, while also improving efficiencies culture perspective, meeting KPIs. across the supply chain. The market changes are forcing Streamline every design goal is to be lean and fast. apparel brands to be more element and development Traditionally, a fashion collaborative. Product process to increase brand launching a collec- design and development efficiency. tion would use various as well as sourcing were The system enables software platforms to previously conducted in integration of all design tools $285B support that PLM process. separate silos. Now, as including Adobe Illustrator This would include software apparel brands are forced and Kaledo, Lectra’s fashion Global Luxury Sales (excluding and textile design solution. cars, yachts, used by designers and into being smarter and wines and spirits) others for preproduction leaner, collaboration and People can work individually work and planning as well teamwork are the words of while staying connected via as software for managing the day. the platform to share designs. the sourcing of materials, Subsequently, providers of Challenge: sourcing the inventory, purchase orders PLM solutions are working right products/ and shipments. with apparel brands to make Thanks to greater visibility For brands doing their sure they have the right over supplier costs and own manufacturing, the platforms as they seek to quality throughout every equipment used was be more efficient. And this aspect of the development considered antiquated, but includes cloud-based plat- process, it is easy to identify adequate. With the software, forms, more efficient design the best suppliers. By keep- none of the platforms software, more consistent ing all costing information were integrated. But as the and accurate color man- and vendor communications $111B agement software as well in one system, businesses demand for shorter lead Women’s Apparel Sales in the U.S. times increased, inefficien- as ways to leverage data can run “what if” cost sce- cies and weak points across to make launching apparel narios to model the effect the entire PLM process were collections more successful of using different suppliers, revealed. at retail. materials or patterns. This As a result, apparel brands — ARTHUR ZACZKIEWICZ enables more informed are increasingly turning to decisions and feedback to suppliers in real time.

$64B Powered By: U.S. Apparel and Accessories Retail E-commerce Sales in the U.S.

Source: S&P Capital IQ. These are publicly traded apparel, Source: Bain Co., Statista accessories and luxury firms as classified by Standard & Poor. december 22, 2016 9

fashion European Activewear Takes Shape ● Ath-leisure players are emerging with distinct artistic collections of tailored silhouettes and detailed elements.

By Sofia Celeste

MILAN — As major U.S. players such as Under Armour and Lululemon continue to post disappointing sales, smaller Euro- pean ath-leisure players are emerging with distinct artistic collections of tailored silhouettes and elements like elastic lace and tastefully abstract patterns. In many cities, such as Milan, prome- nades that were once flooded with women in fur, high heels and stockings are now shared with people in constant movement, who need their clothes to take them from the morning yoga session to their network- ing aperitivo. Italy-based No Ka ‘Oi, launched in 2014, is one of those brands changing Milan’s dress code. Owned by the Bologna-based Rilievi Group, No Ka ‘Oi captivates custom- ers with a zen mantra and designs inspired by the colors and nature of Hawaii. Designed in Italy, No Ka ‘Oi’s ensembles are made in the Rilievi Group’s production factory in India. “Nature is the beholder of enduring Looks from Sàpopa. strength and we translate its elements into our apparel each season. Although we are inspired by this island’s energy, Italy an Italian laboratory in the Veneto region. patterns. upscale stores like Harvey Nichols in Hong is our country of origin and where we are Sàpopa’s material is woven with threads “We realized there was room for an Kong and Bloomingdale’s in Dubai, the headquartered,” said Michele Galliano, that contain enzymes similar to natural activewear brand that is sophisticated brand expects sales to triple in 2016 from managing director of Rilievi Group and ones that aid human blood circulation. and infused with tailoring techniques its 2014 levels. cofounder of No Ka ‘Oi. During a recent press presentation, that doesn’t make you look like you just Elsewhere, players like the tennis-in- Since its debut, No Ka ‘Oi has since been founders Piero Righetto and Maria Elena stepped out of the gym,” Righetto said. spired brand Monreal London and Lucas sold on Net-a-porter, Matchesfashion and Ghisolfi invited a small number of jour- Righetto added that the company started Hugh are emerging in a similar vein. in Harvey Nichols, and now has clients in nalists to join them at a yoga class in the with about 200,000 euros, or $266,000, Galliano noted that these brands are the U.S., Europe, Asia and the Middle East. swanky Hotel Magna Pars in the Via Tor- in 2014. It used start-up capital to help responding to the same intention of Sàpopa is a Milan-based brand that tona design district. fund its team that had design and tech creating stylish activewear and developing prides itself on its Italian tailored elements Attendees were impressed by the experience in companies such as Dolce & their collections with their concepts and and one-of-a-kind eponymous sportswear elegant contours, light, temperature-reg- Gabbana, The North Face and Patagonia. construction techniques that are similar to fabric that the company developed with ulated materials and the fashion-forward Driven by sales in global markets and in No Ka ‘Oi. Retail prices for Sàpopa and No Kai ‘Oi are in line with the luxury market. Online prices run from about 160 euros, or $172, for a pair of leggings to well more than 400 euros, or $429, for a sweatshirt. In the U.S., activewear sales overall are still growing: they grew by 16 percent in 2015 versus the year before, compared to a two percent year-over-year rise in total apparel sales, according to the U.S.-based NPD Group. The founders of the Hong Kong-based fashion development firm Vertical Collec- tive stressed the need for emerging active- wear players to cater to performance as well as art, science and the tricky business of complimenting a feminine silhouette. “The brands that are succeeding in this market are focusing on aggressively pushing trends forward in order to stand out. The most relevant product needs to give a nod to streetwear but find a way to stay feminine and sexy, since it is all about showing off your body — that is not an easy intersection,” said Vertical Collective’s cofounder and co-ceo Katherine Zabloudil. Zabloudil’s partner, Morgaine McGee, praised brands such as Sàpopa for their smart, patented innovations like Sleggings, a pair of workout pants that hide a wom- an’s backside with a discreet flap. “Sleggings is an incredible new take on active leggings, but it also provides a bit of modesty for those women who may not be into showing it all off,” McGee added. “Couple that with state-of-the-art [Made in Italy] fabrics they are using, and you have a winning combination.” 10 december 22, 2016

business marketplace facilitates sales of legitimate goods, stakeholders have identified this site, which has over 3 million page views each month, as one that also offers coun- USTR Relists Alibaba on terfeit apparel and footwear. Muaban does not appear to have an effective mechanism to remove counterfeit listings. China is reportedly the global hub for manufacturing counterfeits, with Guang- Notorious Markets List dong Prov­ince at its epicenter, USTR said. ● The AAFA and 17 other At the Baiyun Leather Goods Market, ven­ continue to see on Alibaba platforms. In the The report notes that during the past dors reportedly sell a wide range of coun- organizations filed a complaint coming year, we will work with our mem- year, some previously listed online terfeit leather goods. Also in Guangzhou, in October with USTR bers, USTR and other government agencies, markets have been subject to successful shops in the Jin Long Pan Foreign Trade over counterfeits sold on outside stakeholders and Alibaba itself to enforcement efforts or are reported to Garment Market allegedly sell low-quality, seek sustained improvements that lead have undertaken various measures that relatively inexpensive counterfeit ver­sions Alibaba’s online platforms, to the permanent removal of counterfeits demonstrated a willingness to cooper- of U.S. and other branded apparel and urging the agency to relist it from these online platforms.” ate in addressing infringement. Alibaba footwear on a wholesale scale for export to on the watch list. Noting that Alibaba has made efforts to claims, for example, that it has proactively Africa and the Middle East. improve its intellectual property rights removed more than 380 million product Many retail vendors at the Silk Market By Arthur Friedman enforcement, its so-called “Good Faith listings and closed about 180,000 Taobao reportedly distribute counterfeit consumer Program” reportedly remains out of reach stores in the 12 months through August. prod­ucts. Despite posted signage indicat- After pressure from a broad coalition of for the majority of right holders, due to “In 2017, the U.S. will closely monitor ing that the Silk Market should be a model business groups, the U.S. Trade Repre- stringent eligibility criteria that must be the implementation and effectiveness of of IPR enforcement, multiple vendors sentative’s Office has relisted Alibaba’s met and maintained over a period of time. the set of prospective actions described in reportedly sell counterfeit goods at a small Taobao e-commerce site on its “Notorious “There is a reported significant dispar- Alibaba’s Notorious Markets List sub- fraction of the price of authentic articles, Markets” list for 2016, four years after ity be­tween the timeliness and effective- mission,” the report said. “As Alibaba and openly assert that the fakes are of removing it. ness of Alibaba’s responses to complaints moves forward with its plans to further high quality. Such conditions are reported The American Apparel & Footwear submitted by right holders in the Good reform and enhance its enforcement tools to persist despite welcomed efforts by Association and 17 other organizations Faith Program and those outside the pro- across platforms, the recommen­dations Chinese authorities to work with manage- filed a complaint in October with USTR gram,” USTR’s report said. “While recent highlighted in the 2015 list remain valid, ment and engage in enforcement actions, over counterfeits sold on Alibaba’s online steps set positive expectations for the namely simplifying processes for right and even though some right holders have platforms, urging the agency to step up its future, current levels of report­ed counter- holders to register and request enforce- successfully sued the market’s operators. scrutiny of the Chinese e-commerce giant feiting and piracy are unacceptably high.” ment action, making good faith takedown In Hanoi, the Nihn Hiep retail market and relist it on the counterfeit watch list. Michael Evans, president of Alibaba procedures generally available, and reduc- has been the target of raids and seizures of The USTR report said, “The Taobao.com Group, said, “We are very disappointed ing Taobao’s timelines for takedowns and counterfeit goods and labels. USTR said it e-commerce platform is an important con- by the USTR’s decision to include Taobao issuing penalties for counterfeit sellers.” urg­es the government of Vietnam to con- cern due to the large volume of allegedly on its Notorious Markets list, as we are far While many of the companies cited in tinue to take enforcement actions to deter counterfeit and pirated goods available more effective and advanced in IPR pro- the report are involved in illegal piracy of sales of counterfeit goods and labels at this and the challenges right holders expe­ tection than when the USTR took us off the media such as movies and games, as well and other nominated markets in Vietnam. rience in removing and preventing illicit list four years ago. The decision ignores as digital copyright infringement, Alibaba Numerous markets in India have sales and offers of such goods.” the real work Alibaba has done to protect is not alone in the fashion realm being appeared in past Lists, with no effective Right holders in the U.S. and interna- IP rights holders and assist law enforce- targeted on USTR’s naughty list. response by the Indian government. tionally have continued to report serious ment to bring counterfeiters to justice.” The business-to-business e-commerce In the 2016 Notorious Markets pro- challenges to reducing high levels of coun- USTR Michael Froman, in unveiling the platform GongChang is reportedly one of cess, stakeholders highlighted dozens terfeit and pirated goods on Taobao, said report on Wednesday, said, “Tens of mil- several online markets in China that are of markets across India for counterfeit the report, and “long-standing obstacles to lions of American jobs and several trillion well-known for the sale of counterfeits, apparel, footwear, automobiles and auto understanding­ and utilizing basic IP enforce- dollars of our gross domestic product rely including counterfeit security tags that parts, electronics, leather goods, mobile ment procedures continue unabated.” on American creative and innovative indus- retailers affix to products as part of a shop- phones, CDs and DVDs, and luxury goods. Rick Helfenbein, president and chief tries. The marketplaces, tactics and schemes lifting prevention system. Gandhi Nagar is highlighted for counter- executive officer of the AAFA, said, “Today’s that undermine and threaten America’s cre- Muaban is one of several Vietnamese feit apparel, while Burma Bazaar is high- action shines a renewed spotlight on the ative industries change quickly and require e-commerce platforms nominated this lighted for a wide variety of counterfeit considerable concerns we and others our constant attention.” year. Al­though this Vietnam-based online goods and pirated media discs.

business full-throated half-time rally preferred by Under Armour’s chairman and ceo Kevin Plank. Activewear CEO’s Rally Supporters “We have punched above our weight for a long time and that has been a central ● The category remains strong, Thrones” to heart: “When you play the Kevin Plank theme of our success,” he told investors part of the health and wellness game of thrones, you win or you die.” in October. “That’s not going to change. Nike president and chief executive offi- We compete in an industry that is mea- trend and fueled by never- cer Mark Parker, despite his commanding sured by a few very high standards. We’re ending product innovation. position, certainly feels the competition. measured by the innovative product we “With the energy we see in sports right bring to consumers, by the strength and By Evan Clark now, along with today’s more active life- relevancy of our brand, by the talent of style, it’s no surprise that our industry con- our team, and of course, by the financial When the gladiators of sport in the tinues to attract the competition,” Parker results we deliver.” active market update investors, quarterly told investors Tuesday, while reporting Shortly after, at the WWD CEO Summit, conference calls can start to take on the air better quarterly sales and profits. he described the white board in his office of a pep rally. “As in sports, competition is a positive that he uses to help solidify the company’s And there’s plenty of reason to fire up thing,” he said. “It sharpens our focus culture with sayings, including, “I don’t the fans. in that we know there are areas in the have to be right, I just want to win.” Despite many dimming lights in the short term where we haven’t executed as And to do that, he’s willing to go toe-to- fashion world right now, activewear is still precisely as we would’ve liked. As good toe with anyone. ultrahot, part of the health and wellness as we are, we can be even better by hyper Asked if he read Nike cofounder Phil trend and fueled by never-ending product focusing on our most compelling growth Knight’s book, “Shoe Dog,” Plank said he innovation promoted as a means to help opportunities.” hadn’t yet, but recalled an anecdote that celebrity athletes up their performance. Adidas’ ceo Kasper Rorsted, who came serves as something of an analog to the Nike Inc. reigns in the kingdom, with from Henkel, on his first quarterly call prefight psyche out. sales of $33.5 billion in the most recent with investors last month was still feeling “Every year I used to write a holiday 12 months and a market capitalization of out the role as an activewear ceo, and only card to the founder of our chief compet- $86.3 billion. By comparison, Adidas has sparingly used sports talk. itor,” Plank recalled. “Dear Mr. Knight, sales of 18.8 billion euros, or $19.6 billion, “Reebok is today well-positioned to you don’t know who we are, but you will and a market cap of 28.9 million euros, or become the best fitness brand.…But at the someday.’ I didn’t think they got there, but atrick M acLeod $30.2 billion, and Under Armour Inc. has same time, we have to be realistic,” he I did it out of spirit. Then in 2007 or so, he sales of $4.7 billion and a market cap of said. “Reebok is growing slower than Adi- significantly below the group average. It’s said somewhere that he got the cards and $12.2 billion. das and our competition. And we’ve seen time to get back to the gym and redouble they pissed him off.” It’s a sector that takes the primary no growth in North America in the past our efforts on Reebok.” Leading an activewear company is a

lesson of George R.R. Martin’s “Game of three years. And lastly, the profitability is That’s more analytical than the sport of its own apparently. P by P lank photograph december 22, 2016 11

beauty CVS Aims to Lure Beauty Enthusiasts ● As trends come quickly to Industry observers said the need to add for housekeeping, Perez-Tenessa and masks. CVS’ Makeup Academy MUA the mass market, the drugstore fresh logos puts pressure on established his team tweaked the program. Now, its continues to be a powerful traffic pulling drugstore brands. “All beauty retailers experts only goal is to service shoppers. line and its relatively new Enlite is gaining company is ready to pounce need new, new items for their customers That includes new tools such as iPads to fans. Also CVS maintains its Nuance on emerging brands. to find, discover and enjoy. This comes at allow them to tap all the available technol- collection, which was freshened earlier the expense of older items that now are ogy to feed information to shoppers. this year. By Faye Brookman deemed less attractive to Millennials and From a physical standpoint, CVS is Additions to CVS’ proprietary Skin+- more adventurous beauty users,” said installing Trend Centers right at the Pharmacy skin care include serums. “That CVS Pharmacy is betting big on beauty. industry consultant Allan Mottus. “CVS entrance to the beauty department to aid brand really speaks to our commitment to The powerful drugstore chain with and other drug chains need to experiment in shopper discovery of what’s new. health,” Perez-Tenessa added. more than 7,900 retail doors is doubling with their planograms or lose share to One illustration of the type of product He’s also expecting big results from down its beauty assortment. Ulta and Sephora.” CVS will position on that display is Wun- advanced skin technologies, which are Its biggest play is in emerging cosmetics CVS is being proactive. Every inch of derbrow. Perez-Tenessa said CVS is the featured in CVS’ Derm Skin Care Centers. and skin care brands — especially lines square footage is carefully gauged to only U.S. physical chain to offer the brow The chain added 700 more of its revved to attract Millennials. CVS is mixing in ensure the right mix. Moving the sales gel, which allows women to fill, define up Derm Centers last year and doubled names including Wunderbrow, Nip+Fab needle are hip and trendy lines shoppers and shape eyebrows with natural-looking its product assortment. The synergy will and Organic Doctor in a bid to attract discover online or on social media sites. color in under two minutes. This month, wellness and beauty will be visible he beauty enthusiasts. Additionally, CVS has Displacing older brands with less rele- CVS shipped it to 500 locations with said as prebiotics roll out to the drugstore created its own masks to offer Korean vance clears the path for products that another 2,000 scheduled in 2017. Priced portfolio. beauty to shoppers. resonate with CVS shoppers. at $22, Wunderbrow offers CVS a chance In the pipeline is the addition of For- Rolling the dice on newness could be CVS is apparently on to something: to get higher register rings and cash in on mula 10.0.6 — a chemist created line for the lifeline drugstores need to compete Results from an elevated store environ- the brow craze. troublesome skin — along with Organic with specialty doors such as Ulta Beauty ment in 400 stores produced not only “We saw customer demand for brow Doctor, an organically certified range and Sephora. a 2.5 percent increase in overall sales, solutions,” Perez-Tenessa explained. “The from the U.K. with on trend ingredient Front of store sales at CVS account for but a notable 4 percent in beauty. The brow category is on fire in beauty right stories such as snail gel and coconut oil. 25 percent of sales, with beauty including company said there is the potential to now,” he added noting celebrities have Physical changes are also under foot hair and personal care is estimated to scale-up resets in 3,000 stores over next fueled the flame. The numbers prove him including a new front and center fixture produce at least half of that sum. several years. correct. Brow category sales soared 32 where emerging brands will star. There’s During CVS’ recent analyst day, Helena The speed to market of prestige con- percent for the 52-week period ended Oct. also a nail bar highlighted by Essie Gel Foulkes, president of CVS Pharmacy, said cepts is quicker than ever, thus giving 30 in multiunit doors, according to IRI to Couture in about 1,500 stores with more the chain will continue to add more space CVS an equal opportunity to hit upon hot $226 million. It was a category dormant on tap. Beauty on the Go is a high-im- to higher profit front end categories such trends as department stores. The indie for years. pulse fixture near the checkout with trial as beauty. She noted health and beauty brands aren’t tied to release windows that Michael Malinsky, cofounder and presi- sizes of desirable beauty brands in 4,000 items produce 1.7 times more profit than once dominated the beauty landscape. dent of Wunderbrow parent of KF Beauty, doors. many other front-end categories. “Mass is getting items faster. The gap shared the enthusiasm calling CVS’ new While health and beauty products Emerging brand names dominate CVS’s between the pace of innovations between beauty look “impressive.” comprise less than half of CVS’ front end beauty direction. “We have a lot of new. prestige and mass is lessening,” Perez-Te- Wunderbrow is just the beginning of a now, the company intends to push that In cosmetics alone, more than 2,800 nessa confirmed. new beauty push at CVS. Over the next to 80 percent. “We will be laser focused products launched this year,” said Alex Furthermore, CVS is positioned to few months, the shelves will be reconfig- on higher growth, profitable business,” Perez-Tenessa, vice president of merchan- incubate growing lines, Perez-Tenessa ured including shrinking some standby Foulkes told financial analysts. dising in beauty and personal care at CVS observed, because of convenient loca- drugstore brands. On the plus side for These efforts coalesce in what Perez-Te- Pharmacy. Much of CVS’ sales growth tions, a burnished new beauty service those legendary brands is that they are nessa believes is an experience encourag- during the year, in fact, came from program, an elevated store experience grabbing up the hot brands via acquisition ing a rediscovery of drugstores. “When we smaller, trendier brands. and its personalized approach gleaned to help them “buy” innovation. A case look at where we are growing, it is with The quest to discover up-and-coming through its ExtraCare loyalty program. in point is L’Oréal’s purchase of NYX or Millennials and beauty enthusiasts, and products is fueled by consumer wish “We can give smaller brands the capabil- Unilever’s buy of Dollar Shave Club. we have brands that appeal to them like lists. “We felt we needed to be there to ities they need to reach the right custom- Among the lines stocked or being added NYX and Skin Fix. They are discovering respond to that demand. Yes, we need to ers who will love them,” he said. at CVS are Skinfix, NYX, Ahava and a Kylie how much fun it is to shop our channel.” carry her all-time favorites, but we want The chain has employed several tactics Jenner favorite, Nip + Fab. CVS is also a leader in omnichannel to be the place where customers come to make its store more relevant to shop- Also, CVS has created its own brands efforts and offers curbside delivery from to find the latest innovations at afford- pers, particularly beauty enthusiasts. for categories where it felt the need. To front end categories including beauty in able prices to find her future favorites,” After discovering its beauty consul- wit, under its exclusive Beauty 360 logo, 4,000 doors and is piloting a delivery Perez-Tenessa explained. tants’ time was often tugged by the need CVS is rolling out Korean-beauty inspired program.

beauty Hollywood Hairstylist Ted Gibson Closes Salon ● Gibson, who counts Angelina with a big name until they were established Millennials is they work to live. They want neighborhood. The existing location had Jolie and Debra Messing as themselves, the Millennial generation uses to be able to create their own schedules… 16 stations and six sinks — a future one clients, is moving his business social media for that, frequently using the way that they work is different. If we would likely pare that down to three to in a different direction. booth rental salons, which are also taking want to be attractive to that generation, five chairs, Gibson said. hold in New York, to run their businesses. then we need to be inspiring to them.” “Our whole idea of an 18-20 chair salon By Allison Collins At Gibson’s salon, the first walkout — 11 peo- While the Flatiron location is closing, is kind of like a dinosaur,” Backe said. “We ple — happened six years in. The second Gibson and Backe are still focused on the want to be ahead of the curve.” Hairstylist Ted Gibson is closing his name- was four years after that, and the latest — rest of their business lines — including a “It’s really about a boutique kind of sake New York salon, effective Wednesday. five people — was in September. not-yet-launched product line, for which idea,” Gibson said, adding that the W “It is really about the luxury experience “It’s hard for a small business to take they are looking for investors, that con- Hotels and other boutique operations that and what’s really happening in our world that kind of hit,” said Jason Backe, Gib- tains actual stardust — powder from mete- were more curated may serve as inspira- is that luxury experience is changing,” son’s husband and business partner. But orites. They will also continue the Ted tion for a new outpost. said Gibson, who charges $1,500 for a all those walkouts caused the pair, who Gibson Advanced Academy and working “We see it all over in every industry in haircut. People are “looking to go with immediately then focused on auditions with Gibson’s artistic team, which travels the world — everyone is trying to come up something that’s a little bit more intimate for Gibson’s Artist Team and presenting for hair shows and with celebrities. with a new idea to run their businesses, when they’re paying that top dollar.” at Intercoiffure, to realize that a shift was And those Hollywood jobs are still rolling and as leaders in the salon world and the The 13-year-old, 2,500-square-foot space necessary. “That’s what started the pro- in — recently, he’s tamed the locks of every- beauty world, we are hearing what’s hap- in Manhattan’s Flatiron district is a victim cess for us to think differently about ‘what one from Anne Hathaway to Angelina Jolie pening,” Gibson said, “and we’ve got the of not just changes in the luxury space, is Ted Gibson salon,’” Backe said. to Lupita Nyong’o and Gabrielle Union. balls to do something,” Backe added. but changes in the salon space as well. The “Gen X before, career was one of the The shuttering of his Flatiron loca- “We want to take the next level of luxury Millennial attitude has taken a particular top priorities in their life — they lived to tion does not signal the end of Gibson’s in a salon experience to the next level,” toll, with multiple walkouts from hair- work,” Backe said. “If you didn’t have a salon career, he said — and he plans to Gibson said. “And we want to be leaders stylists. While it used to be important for great career it meant you’re not a success- open a different salon concept in mid- in our industry for helping our industry up-and-coming stylists to align themselves ful person. One of the biggest shifts with 2017, in a to-be-determined Manhattan redefine what that means,” Backe said. 12 december 22, 2016

business traffic on Sunday seemed to be average. Midweek in Manhattan, there were shoppers and browsers along Fifth Avenue, but not all were carrying shopping bags. Holiday Margin Worries A spot check at the Lord & Taylor flag- ship found there weren’t many browsers in the handbag section, while some were looking at the apparel sections on the sec- Arise as Retailers Cut Prices ond, third, fourth and fifth floors. Most of the store’s sales activity seemed ● Online sales, steep promotions a little nervous and luxury retailers are messaging that many retailers have,” he to be in the second-floor shoe area, where and tough competition looking a little nervous.” said. “E-mail is like the weird uncle who cold weather was driving interest in winter According to NPD’s tally, apparel was gives you good gifts on Christmas; it’s old, boots. There was a rare sale for select have experts worrying up only 1 percent for the sixth week of it’s weird, but it works really, really well.” styles of Ugg boots. over retail bottom lines. the holidays and challenges abound with Marketing through e-mail is just one Although there was a 20-percent-off sales signs blaring about 50 percent dis- element in what Reed calls contextual discount — provided the item one wanted to By Maghan McDowell counts and online merchants staying in commerce, meaning selling to the cus- buy wasn’t on the list of exclusions — if one and Vicki M. Young with contributions the game longer as they push quicker and tomer when and wherever they are. Reed had a coupon for scanning, prices seemed from Sharon Edelson cheaper delivery. said retailers are mentioning other ways to be higher than over the weekend. One According to Adobe, this year’s online to buy in their e-mails, through venues Lord & Taylor branded crewneck cashmere A later-holiday turn to fashion might sales have reached almost $80 billion since such as Facebook Messenger. sweater style was on sale for $69, but could prove to be too little, too late for the retail the beginning of November, with predic- A recent L2 report found that fashion have been purchased for less a few days ago bottom line given steep promotions and tions that the holiday season will rake in as brands have begun taking advantage of the due to special pricing for Super Saturday. a surge in last-minute online sales that is much as $91.6 billion. shift among consumers toward social media Jeff Edelman, director of retail and con- likely to help drive e-commerce sales for That’s an overall increase of more than and the mobile web, but that there was sumer products advisory services for RSM the season to more than $90 billion. 10 percent from a year earlier, with the room for improvement. L2 said only 11 per- and a retail and apparel analyst for more “Apparel is finally starting to kick into growth rate accelerating over the past cent of brands offer e-commerce options on than 40 years, was at the Short Hills Mall the traditional holiday business you week. The last-minute digital shoppers are Facebook and Instagram, while 64 percent — known for its mix of high-end retailers expect to see,” said The NPD Group’s getting a boost this year on shipping costs, have added “Shop Now” or “Learn More” — in New Jersey Wednesday morning. chief industry analyst Marshal Cohen, not- which were down 10 percent from Dec. 16 buttons to their Facebook pages. “It’s quiet here. I’m surprised. I ing that apparel was the only category to to Monday compared to 2015 figures. Macy’s ran a number of video ads on expected it to be a lot busier, and I’m also outperform during the sixth week of the “We’re seeing higher-than-expected Facebook and Instagram tailored to a surprised at the markdowns that I’m see- holiday season, which ended Dec. 10. growth rates later in the season,” said mobile viewer that encouraged people to ing,” Edelman said. Since then, trends have been seen as Tamara Gaffney, who is principal analyst show content using a specific hashtag, and He was at the mall over the weekend as good, but not great. and director at Adobe Digital Insights. directed those who “engaged” with the ads well and said Bloomingdale’s had mark- “Technology is boring and that favors “This points toward people increasingly to Macys.com. Tiffany & Co. created a film downs at 40 percent off over the weekend, the apparel business,” Cohen said. taking advantage of expedited shipping and with actress Elle Fanning with 30-second but now those discounts were cut back to “Apparel usually does well early and it the ability to click and collect in-store.” spots on Facebook and Instagram, in com- 30 percent off. does really well at the end of the season. On the mobile front, smartphones have bination with other immersive Facebook “Prices were lower over the weekend. It This year, it got a late start due to weather brought in almost $17 billion and tablets ads, including ads and link posts to various looks like they cut back. They were more and the absence of trends. The ath-leisure almost $8 billion, together driving 49 per- product categories. Lowe’s and Ikea both aggressive over the weekend,” he said. movement costs a lot less than sports- cent of visits and 31 percent of purchases. used Facebook Live for holiday campaigns. Edelman said margins are beginning to wear. We’re seeing product going out the Harper Reed, head of commerce at Pay- Analyst Dana Telsey at Telsey Advisory be an issue for retailers. door at lower prices, aggressive discount- Pal-owned Braintree, which powers and Group said, “Online sales are the wild “I don’t think they will be making their ing and an absence of driving trends.” automates online payments, said he sees card” this year. margins,” he said. “I originally thought Just how drastically retailers cut prices marketers taking advantage of a range She noted Super Saturday this past week- that margins would be under less pressure will help determine their profits for the of options to catch consumers wherever end got off to a sluggish start due to the than a year ago because inventories were season. Cohen said teen retailers have they can. snowstorm in the Northeast, although the lower. From what I’m seeing, my read is panicked, “department stores are getting “I see e-mail as one of the key points of malls were packed by the afternoon and that stores are getting a little antsy.”

Renta has a more recognized apparel and down and said Kim and Garcia did not Carolina Herrera accessories business. have to come into the office any longer. A Sues Oscar De la Renta An affidavit filed with the suit by Kim’s letter from Kress reproduced in the affi- lawyer Neil Capobianco says that at the davit states that, and Kress signs off with continued from page 1 end of 2015 and in early 2016, she started “have a nice weekend.” having talks with the House of Herrera “At this time, Mr. Kress informed me and about becoming creative director. Based Mr. Garcia that Carolina Herrera (the per- September, and Herrera wants the court to on the promise that Herrera herself would son) did not like our designs for the upcom- stop Kim from joining until April. Kim’s and be “transitioning” out of that role, the affi- ing show [for spring 2016] and that she Garcia’s first collection for de la Renta would davit says, Kim “agreed to give it a try.” felt she could finish the collection in a way be for fall 2017, which would be shown Her start date was to be Feb. 29, 2016. that was appropriate for her brand. In fact, during New York Fashion Week in February. Capobianco declined comment Wednes- Carolina Herrera said to me at that time: Carolina Herrera Ltd. released the fol- day, but the affidavit filed on behalf of ‘Nobody knows you and nobody knows lowing statement Wednesday, “Carolina Carolina Herrera Kim says that once she began working at that you are here. I am more famous than Herrera is pleased the court today granted Herrera, she realized that “nobody had you and have more powerful friends.’” a temporary restraining order that vice president of the house, a salary of $1 informed Ms. Herrera that she was being The affidavit says that Herrera did upholds the non-compete agreement we million to become senior vice president of transitioned out and that Ms. Herrera substantially change the designs. It also signed with our former senior designer. design of the Carolina Herrera brand. Kim intended to run CH as if she were the states that Kim told the Herrera company As the court ruled, the non-compete allegedly turned the job down, though, creative director. According to my offer that she was leaving because it would not agreement was fair and plainly worded. and left to join de la Renta. letter, I was supposed to be reporting to make Garcia co-creative director “and At all times, Carolina Herrera was faithful Kim and Garcia had been hired as consul- CH’s president and chief executive officer because CH would not agree to support to the letter and spirit of our agreement, tants at Herrera in October 2015, joining that Francois Kress. However, I soon learned that Monse’s development as a brand,” adding and we will continue to ethically and company after Kim left de la Renta, where Ms. Herrera frequently took charge, without that Kim “did not feel that this was a posi- forcefully protect our business interests. she had been employed for 12 years working objection from Mr. Kress. Indeed, in a tive environment for creative input.” Our focus remains on continuing to intro- directly with the late de la Renta himself. ‘Fashionista’ article published February 26, News of Kim and Garcia joining de la duce new collections that embody the Her final job there was design director. 2016, Ms. Herrera is quoted as saying, ‘The Renta broke in early September and five spirit of timeless elegance and refinement Sources said while de la Renta exec- creative director is myself. They [Laura and days later Kress sent Kim a letter invoking for which Carolina Herrera is known.” utives were not concerned about Kim’s Fernando] are coming to join me.” the six-month non-compete agreement. A spokesperson for de la Renta joining Herrera, even as a consultant, Sources said Herrera expressed that The Herrera suit claims that the brand declined comment. there was some worry that she had same sentiment to many people, often has lost business since Kim’s departure But Herrera’s suit makes juicy reading worked so closely with the late designer describing Kim and Garcia as “consul- and that the fall collection shown during

ace — and does not hide plans to “transition himself for so long and had deep knowl- tants” while she was the main designer of New York Fashion Week in February has out” the 77-year-old designer and replace edge of the house’s aesthetic. While her brand. been a dud at retail. her with a younger creative director. The Herrera and the late de la Renta were Kim’s affidavit said that she tried to The suit contends Kim was a “unique suit comes at the end of a year when personal friends, there has long been a “work around the tensions inherent employee” who is “very adept at creating Herrera has been celebrating the 35th business rivalry between the two fash- in a surreptitious transition plan,” but designs that are what commercial clients anniversary of her fashion house. ion houses. Herrera’s is much larger, realized the conditions were “untenable are interested in stocking in their stores,” According to the suit, Herrera chief approaching $1 billion based on the and unworkable” and resigned on July 8. adding that the resort 2016 collection Kim executive officer Francois Kress in July successful fragrances developed by her She offered to work out her three-month helped design was “the most commercially

regory P G regory by photograph H errera offered Kim, who the suit says was then a parent company Puig, although de la notice period, but Kress turned the offer successful ever in its 35-year history.” december 22, 2016 13

ACCESSORIES The Mall Report: Neutral Accessories Continue to Find Favor

● WWD visited the The Alex and Ani store Roosevelt Field Mall the had amassed a queue. weekend prior to Christmas, to observe what shoppers were wearing and buying.

By Misty White Sidell

NEW YORK — Glancing at the accessories worn and purchased at the Roosevelt Field Mall in East Garden City this past weekend, it was clear that the center’s mass of consumers prefer what’s practical The shoe sale rack and versatile — or trendy and cheap. at Neiman Marcus. While high-end market experts from retailers like Bergdorf Goodman and merchandise veered toward simple shapes Matchesfashion.com feel that accessories and monogrammed classics, rather than are veering in an embellished, individual- more forward-thinking and higher-priced ized direction, the same could not be said designs by the house’s creative director for of what was observed Sunday afternoon at women’s, Nicolas Ghesquière. the mall. Out in full force for last-minute The shoe chain Journey’s was heav- gifts and to avoid rainy, windy weather ily promoting Converse Chuck Taylor conditions, shoppers were largely dressed high-tops, with a window display rack of in leggings, sweatshirts and Ugg boots or brightly colored editions. The design has Toms slippers. Cross-body minibags and been making the rounds on Japanese style wristlet styles appeared to be the most blogs — particularly in the bubblegum-pink popular purse styles. colorway — and teens in the store appeared With brand boutiques and department Shoes at Macy’s. to be feeling a similar mood. stores marked down at up to 50 percent While trainers, such as performance in the crux of the holiday shopping sea- styles by Asics, appeared to be popular son, budget-conscious shoppers appeared among mall shoppers, the sneaker depart- to gravitate toward necessities rather ment at Nike’s store was very quiet. The than novelties. Coach store also seemed subdued, with Judging from the styles displayed on many of the shoppers polled saying they shelves and racks, it would appear that were unaware of the brand’s repositioning neutral tones and simple shapes were the under creative director Stuart Vevers. most popular. More luxe merchandise Novelty treatments like hologram foils, (such as Vera Bradley’s leather collection), sequins and fur pom-poms were seen at directional shoe designs (platform disco Coach, Robin’s Jeans and the Bari Lynn heels from Saint Laurent and rhinestone pop-up at the mall’s Urban Space market. flats by Valentino at Neiman Marcus) and While perhaps popular with a fashion-for- novel embellishments (sequined Saffi- ward shopper, it was solid matte leather ano bags at Michael Kors) comprised the styles by those brands that were the most majority of markdowns. widely received. That said, Hot Topic’s The busiest stores seen were Hollister, pseudo-renegade teen audience appeared Alex and Ani and Pandora — all of which to appreciate anime caricature backpacks. attracted a queue, sometimes a dozen Providing a counter to this more beige people deep. Shoppers lined up at Alex and salespeople’s attentiveness rather thin. platform sneakers by Steve Madden — were preference, costume jewelry in various Ani told WWD they had already put mer- The store’s footwear merchandise was less trafficked. trendy fabrications remained popu- chandise on hold for fear that it would sell largely neutral-toned and practical — Macy’s in-store Louis Vuitton boutique lar. Stores like Alex and Ani, as well as out, and were simply waiting to pick it up. either versatile day-to-night styles, or flats. was packed with shoppers eyeing mono- Accessorize and Claire’s, were mobbed The shoe department at Macy’s was Booties with a curt heel remained popular. grammed canvas and checkerboard “Dam- with shoppers grabbing fistfuls of chokers, flooded with eager shoppers, spreading Tables with more trendy styles — like velvet ier” handbags and wallets. The store’s kitschy stud earrings, and bangle bracelets.

business are a high priority for both companies. In 2015, UPS was cited by Corporate Responsibility Magazine’s 100 Best Cor- porate Citizens, and it is also on the Dow UPS Inks Deal With Optoro Jones Sustainability Index. At Optoro, the ● The delivery company is company garnered a Circular Economy with the continued growth of global existing portfolio of retail services that Award by the World Economic Forum this gearing up for millions in e-commerce.” optimize the flow of goods, information past year. The tech company also won the packages to be returned. Separately, UPS said its National and funds.” U.S. Chamber of Commerce’s 2016 Corpo- Returns Day is set for Jan. 5. The com- Tobin Moore, cofounder and chief exec- rate Citizenship Award for Best Environ- By Arthur Zaczkiewicz pany expects holiday shoppers will use utive officer of Optoro, said, “Retailers are mental Stewardship. UPS to return more than 1.3 million pack- facing a growing number of challenges, UPS said it recently invested in Optoro Just in time for the “holiday gift returns ages to retailers, e-commerce sites and with the rise of customer returns being via its “Strategic Enterprise Fund.” The season,” UPS said it formed a strategic manufacturers. “More than 5.8 million one of the most prominent, totaling over company said terms of the deal were not alliance with inventory management tech- packages will be returned to UPS during $260 billion in value annually in the U.S.” disclosed. “Investments made through the nology firm Optoro “to enhance its retail the first full week of January 2017,” the Regarding the deal with Optoro, UPS UPS Strategic Enterprise Fund help the reverse logistics services.” company added. said its “joint reverse logistics solutions company better understand new technol- UPS is also a recent investor in Optoro. Alan Gershenhorn, UPS’ chief commer- combine UPS’ operational and logistics ogies and develop new business models “The alliance will provide retailers and cial officer, said the company is “here to expertise with Optoro’s software platform in the rapidly changing retail business manufacturers with a one-stop solution help retailers and manufacturers simplify that maximizes recovery value and reduces environment,” UPS said. to optimize the transportation and dispo- returns management and unlock the full environmental waste.” On that last note, Optoro, founded in 2010, describes itself sition of returns and excess inventory,” value from their reverse logistics pro- UPS said a core goal of the alliance is to as a technology company “that helps retail- a spokesperson said. “This is especially grams.” And he described the alliance “minimize the impact that returns has on ers and manufacturers manage, process

my Lombard A my by M all photographs important as retail returns volumes rise as “an excellent complement to UPS’ the environment.” Sustainable practices and sell returned and excess inventory.” 14 december 22, 2016

Jovan Adepo on Building ‘Fences’ The actor talks Viola Davis and playing Cory Maxson in Denzel Washington’s interpretation of August Wilson’s Pulitzer Prize-winning play.

Imagine you're auditioning for Denzel Washington's adaptation of "Fences," the Pulitzer Prize-win- ning play by August Wilson. You have an in: Viola Davis, who's already been cast, is your mentor. You decide to do one of two things: A, work your connections and ask Davis to put in a good word for you or B, nail the audition and win over Washington without telling Davis of your interest in the part. Jovan Adepo went with option B. Born in Oxfordshire, England, Adepo grew up in Waldorf, Maryland. He studied political science at Bowie State Univer- sity and moved to Los Angeles after graduation to pursue a career in screenwriting. A family friend from church encouraged A still from “Fences” showing him to get into acting and put him Jovan Adepo as Cory Maxson and in touch with her sister, who just Denzel Washington as Troy Maxson. so happened to be Emmy-, Tony- and Academy Award-winning "That’s the aspect of a young stars in the world, comes into characters. This year in partic- actress Davis. American boy or just a young town, everybody knows about it ular, like the last few, has been "There’s something to be said boy period," Adepo says of his and they’re ready. They got lawn really interesting as far as the that you have access to some- character. "That’s why it’s import- chairs outside, sitting outside the diversity, as far as the eclectic one, but you just choose not to ant for so many people to get to gates when we’re coming on set content that’s been coming out." use it," Adepo, 28, says. "I think hear August Wilson’s material to work. They’re always bringing Adepo already has a couple so often people go quick to that because people are quick to food from their house to come of projects to look forward to in nepotism. ‘I should be OK, my say, ‘This is exclusively about the feed you." the new year. The third and final cousin’s a producer, I can get into black culture.’ It is in that that’s Both Washington and Davis season of HBO's "The Leftovers," the movie.’ How about audition, what the setting is, that’s what have received Golden Globe in which he plays Michael Murphy, earn the part and feel confident the story’s about. But I think the nominations for their roles. comes out in 2017, as does an in knowing that the director felt values and the experiences Adepo isn't sure he'll be able to untitled project by Darren Aronof- you were the right person for the that these characters are going attend the awards show due to sky, in which Adepo has a role. It's Jovan Adepo job versus hiring you because through in this family relate to the potential scheduling conflicts, but apparent from his tone that he's you know somebody? And let’s very passionate about hard work until Adepo officially got the part. universal." he's keeping a watch on awards excited about both of these, but just be clear: Denzel’s not hiring and about really developing that She called him to congratulate "Fences" brought Adepo season in general. there's also a hint of anxiety. nobody [if he] doesn’t want to." craft. They definitely made sure him. to Pittsburgh for the first time. "I have a huge stack of "I’ve seen such great material In an industry where who that I was in the right mind-set Adepo plays Cory Maxson, "When you’re on set and you’re in screeners and I cannot wait to and now I’m more picky with the you know can be the difference that I needed to be in, but it was teenage son to Troy, played by a community like the Hill [Dis- get home and finish watching type of jobs that I take because between landing and losing a more of an ‘alright we gave you Washington, and Rose, played by trict] — we shot in the Hill, exact all these movies," he says. "I’ve it’s gotta be there," he says. role, Adepo continues to rely on the tools and the direction, go Davis. In his desperate attempts neighborhood that the story always been a fan of movies well "There’s an old theater saying, hard work, something he learned out and get it and maybe we’ll to assert his identity, Cory butts takes place — there’s a strong before I got involved in the indus- ‘If it’s not on the page, it’s not on from Davis. "[Viola] had to work see you.'" heads with his father, who enlists sense of community and they try. The magic that it brings and the stage.’….You gotta have some hard to get to where she is," he While still auditioning for his help in building a fence in take pride in their neighborhood," being able to, I guess, escape type of standards as far as the says. "She put down the ground "Fences," Adepo would go to the backyard of their Pittsburgh he says. "All the neighbors know your troubles, escape whatever jobs that you take and the roles work, so she wasn’t gonna give Davis' house for dinner and talk home. Cory wants no part of the each other and everybody knows is going on in life and getting to that you take on." me anything. Serious. Her and about everything but the film. In fence — but he does want Troy's everybody’s gossip because it’s live in this moment and in the "Fences" is out in theaters on her husband Julius were very, turn, Davis hardly mentioned it approval. small. Denzel, one of the biggest story and live in the lives of these Dec. 25. — Alexa Tietjen Jessica Alba, Rick Caruso Host Ladurée Opening at The Grove The two hosted the opening party for Ladurée’s first West Coast location.

Jessica Alba at the Jessica Alba and The Grove "You can't not buy them when Ladurée opening at owner Rick Caruso teamed you're there," said Sawyer, adding The Grove. up to celebrate the opening of that Ladurée has also supported Ladurée at the retail center on her kids' charity, Baby2Baby. "We Tuesday night. "They've been did a tea for some of the kids here packed since they opened on on Monday and you should have Saturday," said Caruso, who was seen their faces light up," she counting on a holiday season said of the festive, pastel-colored debut for the restaurant and setting and artificial snow. bakery. "Ladurée is one of the Revolve cofounder Michael all-time great Christmas gifts," Mente also stopped by, taking he said. retail pointers from Caruso On the lawn out front, guests and doing some last-minute including Kelly Sawyer and Jamie Christmas shopping. "I wish I Patricof, Richard Stark, Johnny could find the perfect gift and Hallyday, Brigette Romanek and buy 10 of them. I'll probably end Alana Hadid nibbled pastries up on Amazon," he said – clearly and hors d'oeuvres beneath a not thinking that Caruso is the canopy of white lights and an owner of a brick and mortar enormous Christmas tree. shopping center. "I like that it's my friend's Guests crossed the brick joint," said Alba, referring to pathway to check out the new Pierre-Antoine Raberin, who runs store, but most were drawn back Ladurée's U.S. operations with his outside by the music and lights. wife, Elisabeth Holder-Raberin. "I Indeed, the Los Angeles opening, can go in there, like, 'Yo, this is my the first for the company, was the friend's place,'" she said. Even only party that Holder-Raberin though the pastry shop is now has ever held outside. "You could local, Alba said she'll probably only do something like this in Los still buy the boxed macarons at Angeles in December," she said. lba by Katie Jones/WW D / RE X/Shutterstock Katie A lba by D avid Lee; by still Jenna G reene; by depo portrait

the Paris airport. — Marcy Medina A RETAIL 20/20 THE NEW STORE EXPERIENCE APRIL 25, 2017

CLICK HERE TO LEARN MORE

LONDON summits.wwd.com

ATTEND: KIM MANCUSO, [email protected], 646.356.4722 SPONSOR: ALEXIS COYLE, [email protected], 646.356.4719

FAIRCHILD SUMMITS ANNUAL PARTNERS 16 december 22, 2016

Fashion Scoops

Chanel staged its most recent Métiers d’Art collection at the Ritz Paris.

Ulla Johnson

destination to exalt a facet of the house’s will be Maria Grazia Chiuri’s first effort for wants to explore it. We tried not to over- “We’ve had an incredible amount of French Lessons lore — or to invent a new chapter. the resort season. ­— MILES SOCHA whelm with information. It’s a process of growth at wholesale,” Johnson said. “And He’ll always have Paris — even during But Paris remains a key font of discovery, and you can explore the story we felt that the next stage of growth cruise season. Karl Lagerfeld is to parade inspiration for Lagerfeld, whose Métiers of the season, the brand, the travel and for the brand should be our own retail his next cruise collection for Chanel in d’Art effort for Chanel in December 2015 On the other components to the development [outpost]. Online, we saw that people the French capital, reaffirming his attach- was themed “Paris in Rome.” Staged at of our products if you choose to….It’s not were really buying into some of the new ment to the city and its importance for Cinecittà film studio No. 5, it boasted a Up And Up forced down your throat.” categories we were introducing — soft fashion, WWD has learned. transporting black-and-white streets- Ulla Johnson is in growth mode. Another important function: a stream- suiting, shoes, underpinnings. A lot of Chanel confirmed May 3 as the date cape that elicited a strong emotional The Brooklyn-based designer known lined checkout process: “This idea of these things weren’t available at our of the show, but has yet to disclose the tug as the show fell only weeks after for her relaxed, bohemian clothing and ease is [central] to my line,” Johnson said. retail partners, and we saw that there venue or other details. the deadly terror attacks in cafés and accessories has revamped her web site “We’re all super busy and we want to be was pent-up demand.” Lagerfeld and Chanel recently concert halls that sent Paris reeling, and will open her first flagship in Febru- able to find things we’re looking for. In Johnson’s upcoming 1,200-square- privatized the Ritz Paris and staged three spooking tourists. ary in Manhattan’s NoHo neighborhood. addition to that, we made sure that it was foot flagship at 15 Bleecker Street, slated shows for the Métiers d’Art collection, a Paris mayor Anne Hidalgo hosted a Johnson, who launched e-commerce accessible on mobile. I’m always online to open in late February, will have a pre-fall range of ready-to-wear embel- lunch for top editors during the most in 2014, wanted her new site to empha- shopping in the back of an Uber.” The site residential feel, housing exclusive items lished by the specialty couture ateliers recent fashion week and solicited size storytelling and ease and conceived also offers free U.S. shipping and interna- from the collection, from homewares and that Chanel owns. He dubbed it “Paris suggestions to lure visitors back. Among the redesign in collaboration with RoAnd- tional shipping for the first time. jewelry to designer collaborations. “This Cosmopolite” to evoke a time when the ideas was for French houses to Co design studio. “One of our biggest Since launching her business in sense of a personal touch is important to elegant women from the world over scale back destination shows and bring challenges was to try to communicate 2000 — and growing exponentially after our story and to what people come to us converged on the mythic Place Vendôme their elite audience of press and clients the tactile [nature] of our brand online. a three-year department store exclusive for,” she said. “Bringing that into the retail hotel, established in 1898. to Paris. Our brand is so much about hand-feel, with Barneys New York, which recently experience has been preeminent for us. The Rue Cambon house has been a pi- A growing number of European hous- touch and story,” she said. “So how could came to an end, though her collection is We worked with all of the same teams oneer in staging itinerant shows and has es treat fashion as a movable feast, with we tell that in a flat medium? It was bring- still stocked there — Johnson has expand- that I worked on for my house, bringing taken its cruise collection as far afield Max Mara recently parading its pre-fall ing the story of the product, the travel, ed her line to include footwear, handbags, custom-made furniture and fixtures as Seoul and Havana and its Métiers and a one-off capsule range in Shanghai. the partners and weaving communities scarves and other accessories. Her label sourced from Europe into the space. The d’Art collection to Dallas, Edinburgh and Dior said Tuesday it is heading to Los that we work with into the sales experi- will launch on Net-a-porter in January context around the clothes and the brand Salzburg. Lagerfeld typically uses each Angeles for its cruise show on May 11. It ence as much or as little as the customer with a resort collection. is important.” — Kristi Garced Memo Pad

potential investors and partners.” “Time magazine should name David Observing Insiders surmised that Kushner wants Pecker of American Media to be its top to unload the Observer, which recently guy…but they are not smart enough to do The Observer ceased printing its salmon-pink weekly that!” Trump tweeted in 2013. Jared Kushner appears to be ready to edition, so that he can focus on his bud- There have also been rumors that pick up sticks and move to Washington, ding political career. Kushner bought the Pecker was promised an ambassador job D.C., with his wife Ivanka Trump to become paper in 2006 for $10 million with dreams by Trump, but AMI denied those reports. an adviser (either officially or unofficially) of becoming a media mogul. He began Pecker’s ties to Kushner have been to his father-in-law, President-elect Don- slowly changing its mission, focusing it slightly less obvious, although when the ald Trump, and there’s at least one piece more on digital stories and volume, and Observer shuttered its print edition it of Manhattan he wants to shed before he less on its trademark New York-centric was revealed that subscribers would goes: The New York Observer. According storytelling, which was steeped in media, Jared Kushner and either receive a refund or get Pecker’s to people familiar with the matter, Kush- arts, culture and real estate reporting Ivanka Trump Star Magazine. The bizarre offering was ner has been quietly shopping the storied under longtime editor in chief, the late proof point of a closeness between paper to potential buyers. Peter Kaplan, who left the paper in 2009 item suggesting that Cruz’s father was Pecker’s Enquirer was also one of Pecker and Kushner. A potential suitor for the media prop- (and later joined WWD parent Fairchild somehow involved in the assassination the few publications that endorsed the Indeed, while readers are usually of- erty had been rumored to be National Media) over disagreements about deep of former president John F. Kennedy. Republican candidate; another was — not fered some kind of alternative magazine Enquirer-parent company American cuts in the editorial staff. In typical Enquirer fashion, neither was surprisingly given his familial ties — Kush- option or a refund when a title shutters, Media Inc. AMI declined to comment, It could not be determined how much true — which did not stop Trump from ner’s Observer. the publications normally have similar however, sources close to the firm Kushner is looking to get for the now repeating them both on Twitter and on More evidence of Trump’s cozy readerships. expressed skepticism that the company digital-only property. the campaign stump. relationship with AMI, which may suggest Setting aside the election, the Observ- is a potential buyer. One reason AMI has been floated Moreover, it recently came to light that acquisition interest, is based on the fact er had a more liberal, New York-centric The Observer Media chairman and as a possibility is because throughout AMI reportedly agreed to pay $150,000 that the president-elect and Kushner are bent and less of a tabloid flavor. Again, chief executive Joseph Meyer (who, the presidential campaign, the National to a former Playboy centerfold for her friends with AMI chief executive officer the fact that readers would be offered notably, is also Kushner’s brother-in-law) Enquirer was a pit bull for Trump, publish- story recounting her affair with Trump a David Pecker. Trump has lauded the the option of receiving an AMI-owned denied speculation the property is for ing several stories that were positives decade earlier. The story was then killed Enquirer for its reporting on the John magazine may have stoked “baseless” sale, saying: “As one of the fastest-grow- for the president-elect, including a smear by the publisher, which, in addition to own- Edwards scandal and he has taken to rumors that the publisher had interest in ing businesses in all of digital media, we piece on his primary rival Ted Cruz about ing the Inquirer, also owns Radar Online, Twitter—which means it must be import- the Observer, a source noted.

BEI /Shutterstock M att B aron/ by G iannoni; Kushner G iovanni by C hanel photograph are constantly being approached by an alleged extramarital affair and an Star and OK, among others. ant—to praise his friend. — ALEXANDRA STEIGRAD