Page 1 Wednesday ▲ OBITUARY: Dick Baker, ▲ ▲ MARKETING: WEST: former Creating Tommy Ocean brands that Bahama Pacifi c say “pow” revamps president, rather than women’s, dies at 62, “wow,” page 13. page 3. ▲ NEWS: Malls in Thailand reopen after riots, page 3. page 10.

Women’s Wear Daily • The Retailers’ Daily Newspaper • April 15, 2009 • $3.00

WWDWEDNESDAYSportswear Desert Fox Designers are in a sensual mood for fall, offering sexy separates with plenty of shine and texture. Here, Kevan Hall’s beaded and sequin silk cardigan and silk matelassé skirt, worn with Marni shoes. For more, see pages 6 and 7.

Shoring Up the Store: Istithmar Backs Barneys With Additional Funding By David Moin The parent of Barneys New York has decided to pump over $25 million into the luxury chain to ensure fall deliveries and to ease liquidity concerns among vendors and factors, according to sources close to the business. “I believe Barneys was strong enough to survive without the support, but because vendors and factors were nervous, we elected to put some more capital in to help decrease their level of concern,” David Jackson, chief executive officer of Istithmar World Capital, the Dubai-based parent of Barneys, told WWD. Jackson would not confirm the $25 million report, but characterized the level of support as “significant,” adding, “It’s what the business needs to continue to grow and develop. In this environment, where everybody is hoarding See Istithmar, Page 12 PHOTOGRAPHED BY SAM HESSAMIAN AT WILLIAM HOLDEN’S HOME, PALM SPRINGS; MODEL: KATRINA H/ELITE; HAIR BY TINE IBSEN/ARTISTS AT NEXT MANAGEMENT; MAKEUP BY GUDRUN KOSLOFF/PHOTOGENICS BEAUTY AT SMASHBOX; STYLED BY LEILA BABOI SMASHBOX; STYLED BY AT BEAUTY GUDRUN KOSLOFF/PHOTOGENICS MAKEUP BY NEXT MANAGEMENT; AT TINE IBSEN/ARTISTS H/ELITE; HAIR BY SPRINGS; MODEL: KATRINA WILLIAM HOLDEN’S HOME, PALM SAM HESSAMIAN AT BY PHOTOGRAPHED 2 WWD, WEDNESDAY, APRIL 15, 2009 WWD.COM Levi’s Earnings Tumble 50.5 Percent Clothing Inc. last year. Manes noted that ex- WwDwednesdSportswearay By Ross Tucker amining the results without the lost business FASHION The loss of two major U.S. retail cus- from Mervyns and Goody’s showed an increase tomers and a depressed European retail envi- in sales in Levi’s-branded products. However, 6 Subtle and sexy is the attitude for the fall season, ronment caught up with Levi Strauss & Co. in continued low demand and higher sales allow- as contemporary designers give Seventies the first quarter, hitting revenues and earnings. ances and discounts for the U.S. Dockers brand classics a modern feel. The San Francisco-based weighed on results. Revenues GENERAL denim giant saw earnings from branded stores in the fall 50.5 percent to $48.1 mil- Americas were also flat com- 1 Barneys parent Istithmar World Capital is said to lion for the three months pared with last year. be infusing $25 million into the chain to ensure ended March 1, compared Robert Hanson, president fall deliveries and ease liquidity concerns. with earnings of $97.1 mil- of Levi Strauss Americas, Slumping sales in Europe and the U.S. led Levi lion during the same period said 2009 “will continue to 2 Strauss & Co. to post a 50.5 percent first-quarter a year ago. be a very challenging year loss, as revenues fell to $48.1 million. Overall revenues fell 12.1 for the Americas,” adding percent to $951.5 million from that management was seeing 3 Shopping malls in Bangkok reopened Tuesday $1.08 billion, including sales no signs of a rebound in con- after antigovernment protests forced officials to that slid 12.2 percent to $931.3 sumer sentiment. shutter the downtown centers on Monday. million from $1.06 billion and Declines were more 5 When the new Yankee Stadium officially opens licensing revenue that fell 7.9 marked in Europe, where its doors Thursday, it will surprisingly include percent to $20.2 million from revenues declined 18.7 per- sponsorships from nonsport apparel brands. $21.9 million. Levi’s-branded cent to $267.3 million from products accounted for 78 $328.7 million. Currency 8 MAINSTREAM: While department store better percent of sales during the exchange negatively im- floors sputter, brands hope a stream of launches quarter, or $726.4 million, com- pacted results by $45 mil- and lower prices will jump-start the sector. pared with 76 percent of sales lion. Excluding that impact, WEST: Tommy Bahama is trying to reinvigorate a year ago. revenues would have fallen 13 its women’s business, and the resortwear brand “We knew that 2009 would 5.6 percent. Anderson noted appears to be benefiting from a basic tool. be tough and our first-quarter weaker performance in the results reflect those expecta- Levi’s women’s business dur- 14 Retail sales declined in March after signs of tions,” said John Anderson, ing the quarter. resilience in the first two months of the year, as president and chief executive The Asia-Pacific region the economic slump eroded consumer demand. officer, during a conference proved the lone bright spot, call with analysts. with revenues improving EYE The bulk of losses was con- 3.4 percent to $180.3 million In these risk-averse times, those who have the We knew that s centrated in the European from $174.4 million. Currency A partygoer at the 4 audacity to take a fearless leap ought to be and Americas markets, where “2009 would be tough exchange negatively impact- TriBeCa Ball. applauded. How far is too far is up for debate. global economic turmoil has ed results by $9 million. spurred retail bankruptcies and our first-quarter Management said results Classified Advertisements...... 15 and a drastic pullback in con- were in line with expectations, To e-mail reporters and editors at WWD, the address is sumer spending. Results were results reflect those but it is clear the company’s [email protected], using the individual’s name. also heavily impacted by the wholesale business in major WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 strength of the U.S. dollar. expectations. markets like the U.S. and FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Revenues for the Americas Europe will face considerable VOLUME 197, NO. 80. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with market, which includes the — John” Anderson, pressure going forward. one additional issue in January, May, October, November and December, two additional issues in March, April, June and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division U.S., Canada, Mexico and “As you can imagine, [re- of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services Latin America, fell 13.1 per- Levi Strauss & Co. tailers] are concentrating on provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage cent to $503.9 million from keeping their inventories as paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. $579.8 million. low as they can,” said Hanson in response to a Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian Interim chief financial officer Heidi Manes question about the upcoming back-to-school sea- addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS said in an interview that much of that decline son. “Our focus in this environment is on driv- CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA stemmed from the loss in volume from the ing to gain market share and on managing our 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed bankruptcies of Mervyns and Goody’s Family inventories really tightly.” on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT Ex-Employee Fined $7.5M in Hermès Case RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER By Glenn Smith even higher prices than genuine bags,” accord- MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY ing to a source at Winkler. WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE TAIPEI — Taiwan’s newly formed Intellectual In December 2006, Hermès Paris sued Lee ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. Property Court has ordered a former employ- for trademark infringement, and she was found ee of Hermès Taiwan to pay the French luxury guilty in April 2008. A civil suit was subsequent- goods house $7.5 million for the alleged sale of ly filed in Taiwan’s new IP Court, and Hermès DAILY four fake Birkin bags, according to Hermès’ legal Paris’ case against Lee became one of the first In this environment, team, Winkler Partners. luxury goods cases to be heard. The $7.5 million “ The defendant in the case, Joyce Lee, worked fine is the largest award ever for trademark in- QUote where everybody is hoarding for Hermès from 1998 and 2000, and later began fringement, Winkler Partners said. flying to Paris to purchase bags for her own “We feel grateful that trademark could be cash, we are trying to send a signal that customers. Later, Lee allegedly passed off fake protected by the law, and take this as a warning bags as real ones to her customers. Lee “used to those unscrupulous operators seeking to prof- we are supporting the business. her previous position to gain credibility with her it from the sale of counterfeit goods,” said Debby ” customers” and sold the counterfeit items “for Cheng, managing director for Hermès Taiwan. — David Jackson, chief executive officer of Barneys New York parent Istithmar World Capital. Page one. CORRECTION The cover photograph for the WWD Collections magazine published Invista to Pay $500M in Environmental Fines Monday was taken by George Chinsee. The credit was incorrect. By Matthew Lynch Milla Jovovich during TODAY ON Fiber and chemical producer Invista has agreed to pay an estimated $500 mil- New York Fashion Week. lion to correct environmental violations at 12 plants and an additional $1.7 million civil penalty. The company said Tuesday that it reached the settlement with the Environmental Protection Agency and other government regulators on the offenses in federal court in Wilmington, Del. Invista .com disclosed more than 680 violations of federal regulations such as the Clean Air Act shortly after WWD DuPont spun it off to Wichita, Kan.-based Koch Industries Inc. in a $4.2 billion sale in 2004. • Featured Images: Miles Ladin prints A company spokeswoman said Tuesday that two of the plants, in Seaford, Del., and Camden, S.C., from the fall collection season manufacture fibers. In a lawsuit filed in March 2008 in the U.S. District Court for the Southern District of New York, • Back in Time: Julia Child Feeds WWD n i

Invista alleged that Wilmington-based DuPont knew of safety and environmental violations but did d • Video from the Bottega a not disclose them before the sale. It is seeking no less than $800 million in damages and a court L Veneta/Bergdorf Goodman party order requiring DuPont to fulfill contractual obligations. iles

M • WWDBlogs on California,

Invista said it has corrected the majority of its noncompliances, but that the settlement outlines by o remedies, such as additional environmental controls, for about 50 remaining infractions. The South t and when the recovery will come o h

Carolina and Delaware plants are among those that will require further action. P • Global breaking news WWD, WEDNESDAY, APRIL 15, 2009 3 WWD.COM Protests Take Toll OBITUARY Apparel Executive Dick Baker

By WWD Staff “There was no limit to what he could On Thailand Retail do or how many people he could teach Dick Baker, former president and befriend along the way,” Rosengard By Joyce Barrett The Thai Ministry of Foreign Affairs of the surf brand Ocean Pacific who said. “There is a giant fraternity of Dick said Tuesday the “government was firmly held several executive positions during Baker protégés and students, and many, Shopping malls in Bangkok re- in control” and conditions had returned a 35-year career in the apparel indus- many more friends, who will keep his opened Tuesday afternoon after nearby to normal. Protest leaders called off the try, died of prostate cancer Tuesday at legacy alive.” antigovernment protests forced officials to demonstrations, which were based at Mission Viejo Hospital in Mission Viejo, A native Californian, Baker grew up shutter the downtown centers for 36 hours. Government House, and sent most of the Calif. He was 62. in the San Fernando Valley and gradu- Siam Paragon, the upscale 5.4-million- demonstrators home, the ministry said. Baker’s career started at Los Angeles- ated from the University of California, square-foot shopping center in the heart The demonstrations disrupted Thai based Bullock’s department store, then Northridge. of Bangkok’s retail district, reopened New Year celebrations known as the shifted into the wholesale arena, as he His friends and colleagues said Baker around noon. The center, which is built Songkran Festival, which are held April moved through a succession of leader- fought cancer for two years. on land owned by the Thai royal family 13 to 15. In an attempt to clean up the ship jobs in New York, including execu- and is next door to one of the monarch’s city and ensure the disturbances have tive vice president of Eagle Shirtmakers’ palaces, was closed Monday and early ended, the government extended the Pierre Cardin sportswear and dress Dick Tuesday at the request of the police be- holiday through Friday. shirts division, president and chief op- Baker cause of security concerns, said a spokes- The Songkran Festival is one of erating officer of Winston Mills’ Marithe man for Siam Paragon Development the busiest times of the year at Siam + François Girbaud division (when the Corp. A bolstered security force of 800 Paragon, the spokesman said, noting a company held the U.S. license to produce officers working with metal detectors, se- Songkran Music Festival planned at the the line) and president and chief execu- curity cameras and bomb detectors was mall this week has been canceled. tive officer of Izod Ltd.’s men’s wear. in place at the mall, he said. “This will hurt our business, but we In the mid-Eighties, Baker headed to “We’re just taking it day by day,” the don’t know how much,” he said. San Francisco and rose to president of spokesman said in a phone interview. Somphols Manarangsan, a political Esprit Sport, followed by Esprit Women’s Nearby Siam Center and Siam economist at Bangkok’s Chulalongkorn Wear, where he met his wife, Una, a de- Discovery Center, also owned by Siam University, predicted the continued po- signer at Esprit. He also was president Paragon Development Corp., reopened litical unrest in Thailand would dramat- of Bernard Chaus and Tommy Hilfiger’s Tuesday afternoon. Central World, a ically hurt tourism and retailing, and women’s division. 6-million-square-foot shopping center a could cost the country up to $6 billion in In 1998, Baker and his partners in few blocks away from Siam Paragon, also lost revenue. the San Francisco-based investment reopened Tuesday afternoon. The center, “This is high season for tourism,” he group Doyle & Boissiere acquired Ocean which is across the street from a Royal said. “During the last few days, many Pacific Apparel Corp. from Berkeley Thai police station, also was closed at foreign tourists from around the world International Capital Corp. After Op’s the request of the police, said Nattakit have withdrawn from Thailand.” sale to Warnaco Group Inc. in 2004, Baker served as president of the surf brand and was retained as a consultant by Iconix after the company acquired Op in November 2006. Baker’s mark on the surf industry was notable, especially considering that he arrived late in his career to the board- sports sector. He flew to San Juan last May to give a “He was so unique, coming from out- speech to the Board Retailer Association

v side of our industry and ending up being during the same week that he complet- almost like a father to the industry,” ed chemotherapy, said Bobby Abdel, ndo a L said Joel Cooper, chief executive officer co-owner of specialty retailer Jack’s s/

ew of Lost International, who served with Surfboards in Huntington Beach, Calif. Baker on the board of the trade group “No one else would do what Dick rg N

be Surf Industry Manufacturers Association Baker would do,” said Abdel, noting m (SIMA). “To me, he is the person who that he saw Baker as recently as March oo evolved the business from a multimillion 19, when SIMA sponsored seminars at industry to a multibillion industry.” Huntington Beach. Baker quickly became involved with Stan Tucker, former men’s fashion di- SIMA, where he served on the board for nine rector at Saks Fifth Avenue, said Baker years, most recently as chairman emeritus. was “my closest friend in and out of the The organization plans to honor him with its industry. We go back to when he was a UDO WEITZ/Bl PHOTO BY lifetime achievement award. He also served buyer at Bullock’s and I was with AMC.” Thai protesters forced officials to close down several malls in Bangkok. on the board of trustees of the Otis College Tucker described Baker as “street- Tangpoonsinthana, executive vice presi- Manarangsan said the firm hand the of Art and Design in Los Angeles. smart,” an unusual attribute in ceo’s. At the dent of mall operator Central Pattana. government has taken in stemming the Embracing the surf culture, Baker, his same time, Tucker said, he “cared for the Central Chit Lom, the centerpiece demonstrations and its openness with wife and two sons, Ryan and Jack, lived in people who worked for him. He also had the seven-floor department store of the foreign media would help rebuild con- a beachfront home facing San Clemente, best sense of humor, even when he was sick. Central Retail Group, was closed sumer confidence. Calif.’s surf spot, Cotton’s Point. When And he was the consummate family man.” Monday, but reopened Tuesday with “It will take hard work to recover, and the surf was good, Una would e-mail Bob Baker also was a mentor, said Matt extra security, Tangpoonsinthana said. it will take a long time,” he added. Serra, chief executive officer “It’s safe now,” he said. The Thai Ministry of Foreign Affairs of Foot Locker Inc., another A command post for Siam Paragon already is tackling the task of rebuild- close friend. Development Corp. staffed by 30 per- ing the tourism industry, which suffered There was no limit to what “He was an incredible and sonnel from security, marketing, public a blow in December when antigovern- “ talented businessman who relations and operations was operating ment protests shuttered the Bangkok he could do or how many touched many lives in the retail out of the shopping center or nearby International airport for a week and and wholesale industry,” Serra office tower and was in constant touch stranded thousands of visitors. people he could teach and said. “He was always ‘up’ and with police throughout the antigovern- “Foreigners have not been targeted positive. He viewed life as more ment protests, the spokesman said. He in the ongoing political conflict,” the befriend along the way. half-full than half-empty.” added he was working from his home on Ministry said Tuesday. “Be that as it may, Baker “totally redefined the — Paul F. Rosengard, Perry Ellis ”International Tuesday because of the protests around foreigners are advised to avoid areas in Op brand model and turned it the city. which protesters are still gathered. The into a major brand within the Antigovernment protests, which re- government will continue to step up McKnight, chairman and ceo of Quiksilver skate and surf industry,” said Elaine Hughes sulted in the deaths of two people and measures to ensure the safety and well- Inc., who would come over with his board of E.A. Hughes & Co. executive search. “Dick injured at least 123, have disrupted being of foreigners in Thailand.” for a bout on the waves and then shower had formulated some of the strongest and Bangkok streets for a week and forced The Tourism Authority of Thailand in the Bakers’ house. long-term relationships in the industry.” the cancellation of a regional lead- also moved to reassure tourists late “I remember him just smiling,” Joe Gromek, president and ceo of ers’ summit in Pattaya last weekend. Tuesday and said “various tourist attrac- McKnight said, laughing as he recalled Warnaco, said Baker was committed “to Protesters wearing red shirts in sup- tions and shopping districts are open for that Baker expressed his agreement on authenticity and was a passionate and port of former Prime Minister Thaksin business as usual.” any topic by saying, “Exactly.” committed steward of the Op brand.” Shinawatra have swarmed city streets, The American embassy in Bangkok “I remember a lot of soulful discus- “I can’t imagine life without Dick, my burned buses and tires, and demand- issued a warning April 12 to Americans sions with him: family, kids, the industry, friend of 24 years,” said Dawn Robertson, ed the resignation of Prime Minister living or visiting Thailand to avoid areas growth, accounts we’d share information president of Sean John and former presi- Abhisit Vejjajiva and another election. of conflict and to exercise caution. It also about,” McKnight said. dent of Old Navy. “Every major decision Vejjajiva, who came to power in warned citizens that demonstrations Baker had an ability to transcend from markdown money to our children to December, declared a state of emergen- were focusing on Government House, generations and lifestyles, said Paul F. moving to other countries has been done cy and said he doesn’t plan to lift it until Parliament and the Central World and Rosengard, group president, premium with Dick’s advice.” all is calm in the capital city. Siam Paragon shopping malls. brands, Perry Ellis International. Funeral plans were pending. 4 WWD, WEDNESDAY, APRIL 15, 2009 WWD.COM

At the Frick Collection Young Fellows Ball.

Irina

s Teyana Taylor Pantaeva Wild Things In these risk-averse times, those who have the audacity to take a fearless leap ought to be applauded. How far is too far, At the Frick. though, is up for debate. Should a look that seems straight off the stage of “Hair” be worn Georgette walking around Manhattan? How much fringe does Mosbacher one really need? Who knows — but it certainly makes the somewhat winter-weary scene more exciting. Lots of pink, se- Mary-Kate Olsen quins and a pair of John Lennon-esque blue sunglasses showed

s up on the party circuit in the past few months, just beg- At the TriBeCa ging the rest of the folks to take things a little more Ball. lightly. So in the spirit of “Grey Gardens” and its celebra-

EICHNER tion of sartorial eccentricities, here is WWD’s compilation of looks that pushed the edge — and, in some cases, fell off. STEVE OTHERS BY WHALEN; ALL KRISTEN SOMODY BY KEENAN; BERACASA STEFANIE BY

PHOTO Fabiola Beracasa At aa partyparty forfor

At the TriBeCa Ball. and Terence Koh. Topshop. s At the Frick. MILLER

At 23 years old, actress Allison Miller For more images, Nevertheless, “It’s a universal desire. Everybody wonders is not always thankful for her baby face. “I have see WWD.com. how they got into their situation.” to deal with people carding me all the time and After a brief detour studying at the University of Florida frequently asking me where my mom is,” says the and Rhodes College in Memphis, Miller returned to acting petite brunette. and moved to Los Angeles. There she quickly booked small But her fresh-faced look is exactly what helped her land the part of a perky teenager in the new comedy “17 Again,” in theaters Friday. The film is about a I’m glad time doesn’t work that disillusioned thirtysomething (Matthew Perry) who ends up back in high school after wishing he was a way.“ I was terrified and pretty teenager. It’s like “Big,” except the main character gets younger instead of older. Zac Efron plays the younger naïve.­ version of Perry while Miller plays the adolescent version of Perry’s wife (Leslie Mann). ” — Allison Miller on being 17 again. “Leslie has a very pleasant voice, and I tried to play off queen her lilting sound,” says Miller. But she admits her acting roles on “Desperate Housewives” and “Boston Legal.” She skills could only go so far: “We were both at the screen test now stars in “Kings,” NBC’s new sci-fi drama based on the looking at each other thinking, ‘Yeah, I don’t know.’” story of King David but set in modern times. To prepare for Miller’s own teen years were spent moving from her role as Princess Michelle Benjamin, Miller consulted state to state with her mother and father, a newspaper press clippings about real-life royals like Princes William reporter whose beat changed often. While her and Harry and Charlotte Casiraghi, daughter of Princess upbringing helped give the actress the confidence to Caroline of Monaco. try out for the school play as a senior in Tallahassee, “They seem to really value their privacy and want to Fla., becoming 17 again isn’t something she herself is keep people at a distance,” observes the actress. “And you eager to try. “I’m glad time doesn’t work that way,” she Allison Miller know, they stand up straight.” teen says. “I was terrified and pretty naïve [when I was 17.]” — Amanda FitzSimons WWD, WEDNESDAY, APRIL 15, 2009 5 WWD.COM Firms Single Out Yankee Stadium for Sponsorship FASHION SCOOPS By Brenner Thomas The stadium also offers 56 luxury suites — nearly FRESH BLOOD: The Council of Fashion Designers of America triple the amount in the old stadium — and a 1,800-seat ratified three new members to its board on Monday. Tory Come Thursday, when the new Yankee Stadium premium section that offers in-seat service, private rest- Burch, David Yurman and Marcus Wainwright are joining the in the Bronx officially opens its doors, fans will find rooms and cushioned teak bleachers. A single ticket in board, as John Varvatos, Robert Lee Morris, Kate Spade and prominent sponsorships from an unexpected source: non- the latter section sells as high as $2,650. Joseph Abboud, who will all become director emeritus, rotate sport apparel companies. The strategy seems to be working. In addition to land- out. The new board members join CFDA president Diane von Both Tommy Bahama, the island lifestyle brand, and ing Weatherproof and Tommy Bahama as sponsors, the Furstenberg, Reed Krakoff, Richard Lambertson, Yeohlee Teng, Weatherproof Garment Co., best known for its casual jack- Yanks recently announced that Audi had signed a three- Ralph Lauren, Nicole Miller, Derek Lam, Leigh Bantivoglio, John ets, have invested in the new ballpark, moves that under- year deal as the team’s official luxury car, replacing its Bartlett, Dana Buchman, David Chu, Kenneth Cole, Francisco score the apparel industry’s ever-widening search for novel long-term agreement with financially ailing GM. Costa, Oscar de la Renta, Marc Ecko, Stan Herman, Michael marketing strategies and the growing appeal of the sterling “These new apparel sponsors are consistent with the way Kors, Tracy Reese, Patrick Robinson, Narciso Rodriguez, Selima Yankees brand. (For more on Tommy Bahama, see page 13.) we see the Yankee brand,” said a spokesperson for the team. Salaun, Isabel Toledo and Vera Wang. The CFDA meeting On Monday, Tommy Bahama “We have had sports-apparel com- took place at the DVF Studio. In other CFDA news, the said it would open its first stand- Companies that don’t traditionally sponsor the MLB panies sponsor for years, but we deadline for membership applications is May 6. Meanwhile, alone bar in the stadium. The same are partnering with the new Yankee stadium. think we have broader appeal.” those wishing to reserve advance tickets for the 2009 CFDA day, Weatherproof announced an Wood agreed the new stadium Fashion Awards, which are scheduled to take place at Alice agreement to sponsor the stadium’s was a suitable platform for the Tully Hall on June 15, must do so before Friday. field tarp, which is prominently Tommy Bahama brand. “It’s the stored along the third-base line. most high-end facility I’ve ever LINDSAY LOHAN’S LAST LAUGH: While millions of viewers Both are unusual steps for seen; to call it a baseball park giggled at Lindsay Lohan’s mock eHarmony singles video the companies, neither of which doesn’t do it justice,” he ex- posted Monday on FunnyOrDie.com, they may not have makes athletic apparel nor has plained, adding the com- realized the scrutinized starlet was having a laugh at their an extensive track record of part- pany signed a two-year expense. The 91-second snippet — in which the tabloid nering with professional sports deal with the Yankees bait professes “the perfect mate loves long walks on the teams. Neither company would to open and manage beach, car chases on the PCH, antiquing and, er, passing reveal how much it is spending the Tommy Bahama out in Cadillac Escalades” — is actually a commercial on the sponsorships. Bar. “Don’t expect us to for her leggings and hosiery line, 6126, and self-tanner, The Major Leagues have his- WwD be showing up in other Sevin Nyne. After all, Lohan combines the number-based torically been home to mass sport stadiums around names of the brands for her fictitious member ID for market retailers and commodity Men’s the country; there is only the matchmaking service. She also spritzes a can of the brands. Anheuser-Busch, Gillette one Yankee Stadium.” tanning mist on her already bronzed face in the video.

and State Farm are among the orbis A Weatherproof execu- “There’s been a lot of really over-the-top rumors in the C / typical sponsors of Major League I tive said he was confident the last week,” said Kristi Kaylor, Lohan’s partner in 6126 M Baseball. The few apparel compa- S Yankees fan base overlaps with and Sevin Nyne. “Instead of responding to the media, we con nies that do sponsor pro baseball, I the Weatherproof consumer. were, like, ‘We have to laugh at it.’” like Nike and Adidas, almost al- While the company generally And so Lohan’s camp contacted FunnyOrDie, the eelig/ S ways hail from the athletic sector. advertises to the trade through comedy Web site co-founded by actor Will Ferrell, last For a cold-weather brand d targeted outdoor initiatives or to Thursday. On the following day, Lohan co-wrote the like Weatherproof or an aspira- Davi consumers through print adver- script, and filming took place on Saturday. More than tional lifestyle brand like Tommy tising, he said the opportunity to 1,077,600 views were counted in the first 24 hours Bahama, investing in the new partner with the Yankees in the since the video was posted on Monday. This isn’t the first $1.5 billion stadium is a venture Photos by new stadium’s first season was time Lohan is giving her own twist to guerrilla marketing. A view of the Tommy Bahama Bar, the company’s first that will test their brands’ appeal too good to pass up. To distinguish herself from the myriad of Twitter users partnership with a professional sports team. with sports fans. “It’s certainly one-of-a-kind,” purporting to be her on the microblogging service, she devised “I was concerned at first about how our brand would be Eliot Peyser, Weatherproof ’s chief executive officer, her user ID by blending the names of her fashion labels. As perceived in a ballpark,” said Doug Wood, president and said of the sponsorship of the tarp, which will bear the the Internet-savvy Lohan reminds people in her singles ad, “I chief operating officer of Tommy Bahama. “You don’t see Weatherproof logo for the 2009 season. “If you can’t get a never lose my Google hits — just my underwear.” names like ours associated with a sports team.” billboard on 37th Street, you can always get one on 38th But the Yankees aren’t like other baseball teams. Street. But there’s only one tarp at Yankee Stadium.” ART HOUSE: Chanel, Ranked as the most valuable franchise in the sport with a With approximately 4 million attendees a year and once again the sponsor value of more than $1 billion, the Yankees have long been millions more watching on television, Yankees games can of the Tribeca Film considered the team of New York’s well-to-do. generate major exposure for sponsors who have their Festival’s Artist Awards And the specs of the new stadium suggest the team is logos displayed on the field. Program, is getting its working to expand its appeal to advertisers at the better “I’m hoping A-Rod catches lots of foul balls this year very own art preview end of the market. with the logo in the background,” said Peyser, noting the this year. As part of the The new stadium boasts higher-end eating options, includ- team’s logo will only be visible when the tarp is on the program, 10 New York ing a Hard Rock Cafe and a pricy steak house, and double sidelines and not when it is in use. “We don’t want our artists donate works to the number of concession stands, which, in addition to the logo to be out there when they have the tarp on the field. the festival’s winning customary hot dogs, sell sushi and artisanal sandwiches. No one wants to be associated with a rain delay.” filmmakers, and, for the first time, the paintings, prints and collages will Chanel No.5 interpreted be exhibited at Chanel’s by Studio Job. SoHo boutique at 139 Lisa Perry, Lululemon Broaden Scope With E-commerce Spring Street from Thursday through April 29. The house’s By Marc Karimzadeh and Whitney Beckett An avid shopper of vintage clothes, Perry admitted iconic tweed suits and quilted leather handbags are in for she isn’t too savvy when it comes to online shopping, but some heavy competition. This year, the roster of artists Lisa Perry and Lululemon are both extending working on her own site has given her a taste for it. includes Clifford Ross, Mickalene Thomas, Stephen Hannock, their reach via e-commerce. Meanwhile, Lululemon Athletica Inc., which has 65 Robert Mangold, David Salle, Hank Willis Thomas, Fritz After opening shops in SoHo, Sag Harbor, N.Y., and Palm stores in about 50 U.S. cities, expects to do 10 to 12 per- Chestnut, Tom Slaughter, Kalup Linzy and SunTek Chung. Beach, Fla., Perry added e-commerce to her Web site at lisaper cent of its total volume (which was $353.5 million last rystyle.com, while Lululemon, the Vancouver-based yogawear year) in online sales in its debut year. TAKE FIVE: Speaking of Chanel, Kuwait retailer Sheikh firm, pushed up the fall launch of its Web site’s e-commerce “At the outset, I think our online customer will be peo- Majed Al-Sabah enlisted 25 artists and industrial capabilities to today. ple who know the brand or live designers to interpret the iconic Chanel No.5 bottle for Perry’s site offers her entire as- A page from in areas where we don’t have an exhibition at his new gallery, Al Sabah Art & Design. sortment, including women’s and Lisa Perry’s new stores,” said Bree Stanlake, He said almost 90 percent of the works sold in the first girl’s wear, accessories and home e-commerce site. Lululemon director of retail and few hours, suggesting people are “starving for fun, new lines — with her signature graphic e-commerce. “E-commerce is an and creative artistic ideas.” Works, priced from about aesthetic and whimsy. Perry said opportunity for Lululemon to $300 to $500 by the likes of Haluk Akakçe, Maarten she decided to venture into e-com- extend its reach while maintain- Baas and Tom Dixon, are on display through next Monday. merce for several reasons. ing that exclusive brand experi- While one depicts a sailing ship inside the iconic bottle, “There are people from all ence. It really completes the cir- most contain the actual perfume and therefore are over the country and the world cle of choice for our guests, who functional, too. who want access to Lisa Perry are busy people and often don’t and while we are in stores have time to visit the stores.” RHODES FOR M&S: Celia Birtwell worked her famed fabrics in many cities, we are not in Stanlake said the push up of into a collection for Topshop in 2006, and now her fellow all,” she said. “This really was the launch was a response to print designer Zandra Rhodes has teamed up with Marks the perfect way to give peo- consumer demand, as well as a & Spencer. The fuchsia-haired designer will launch a line ple everywhere the access.” change in the company’s strate- of women’s wear, accessories, holiday wear and lingerie, She also noted the economic climate encouraged her to gic plan, as it scaled back on store openings in 2009. called Zandra Rhodes exclusively for Marks & Spencer, make the move. “We thought we could set up a site rela- Lululemon.com will carry the entire Lululemon line, which hits selected stores and the retailer’s e-commerce tively inexpensively,” she said. “We did it all in-house. It and has a dedicated merchant and online community site May 7. Pieces in the collection include a snakeskin was a great process and we learned a lot. We thought it educator. Attempting to “take our culture and extend it print cut out swimsuit, an off-the-shoulder silk dress in a was a way to get another store without paying rent.” online,” Stanlake said the site included content such as purple and blue paisley print and a jersey jumpsuit in a The site offers the designer’s soup-to-nuts assortment, interviews with its designers. black-and-white rose print. Prices range from 6 pounds, including a cotton twill geometric color-block A-line dress Lululemon stores have been handing out cards adver- or $8.80 at current exchange, for silk chiffon knickers for $950; a crinkle patent vinyl overnight duffle for $295; tising the site with the slogan “Shop Nude,” and Stanlake through to 89 pounds, or $130, for a silk dress. “Marks a Pop Art dot motif duvet cover for $250; colorful vinyl said 26,000 people have signed up to be kept up-to-date on & Spencer do a wonderful product range and I’d always coasters for $5, and a Pop Art dot notepad for $10. the launch, at a clip of 750 new e-mail requests a day. wanted to design for them,” said Rhodes. 6 WWD, WEDNESDAY, APRIL 15, 2009 earth, wind and fire Subtle heat is the attitude for fall, as contemporary designers give Seventies classics a modern feel. — Leila Baboi

Twelfth Street by Cynthia Vincent’s beaded crepe de chine silk dress; Kevan Hall’s dégradé fox fur. Dinosaur Designs bangle; Diego Dolcini shoes. Photos by Sam Hessamian WWD, WEDNESDAY, APRIL 15, 2009 7 WWD.COM

Kelly Bergin’s silk trenchcoat. Hale Bob’s silk jersey dress. Noir earrings; Dinosaur Christys’ Crown Series by earth, wind and fire Designs bangles. Tony Merenda hat. KAJOHN KIM AND BROWN TANYA : S TANT S I SS A HION S FA HBOX; S MA S

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HOLDEN’s WILLIAM AT Rory Beca’s silk chiffon dress with leather paillettes and Swarovski crystals. Earrings, bracelet and necklace by Noir. PHOTOGRAPHED 8 WWD, WEDNESDAY, APRIL 15, 2009 WWD.COM In the Mainstream Better Floors Battle to Stay Relevant By Whitney Beckett separates. We’re hearing from retailers that they want The Rafaella Group’s Ellavie better-priced line also separates. We’re now making great pieces, so if a cus- entered about 110 doors this spring, and Rafaella Group While department store better floors tomer comes in and sees an outfit on a mannequin, they ceo Christa Michalaros said she expects to maintain that sputter because of the recession — even losing space to can just buy a piece to add to their existing wardrobe.” store count for the remainder of the year. “We remain moderate lines — companies hope a stream of launches The better business is “very top-driven,” Goldreyer conservative about the size of the business as we navi- and relaunches, plus lower prices, will help jump-start added, with knits, blouses, cut-and-sew tops and jackets gate through the state of the economy,” said Michalaros. the sector. (particularly versatile versions of the motorcycle and The relaunches join a cast of better introductions Although observers agree the pricier better market boyfriend jackets) ranking as top sellers. Tailored looks and reintroductions from fall 2008, which in turn fol- has been especially hard hit — with orders depressed have also been key. Color and prints — which will be lowed the shuttering of Nautica, Sigrid Olsen and O by 20 to 30 percent — particularly in February, March updated to dramatic hues, plaids and animal prints for Oscar. DKNYC launched in 275 doors (it’s holding started to deliver bright spots. The key is delivering the fall — are also inciting emotional buys. To appeal to the steady at that number for 2009, according to a spokes- better customer what she wants: items instead of col- value-mindedness of customers, lines are pushing sea- woman); Adrienne Vittadini relaunched in nearly 400 lections, multipurpose career-to-casual pieces, season- sonless fabrics and day-to-night pieces. doors (it’s adding more than 100 doors this fall, though less fabrics, higher value at sharper price points, upbeat colors, tops more than bot- toms, slenderizing technology and profes- sional tailored looks. Spring A spring ad for the relaunched “Throughout 2008 we saw a lack of Calvin Klein white label. sales growth in better, so we reacted and bestsellers planned those businesses down accord- • Color ingly [by the same percent of previous decrease] in the fourth quarter and into • Slenderizing technology 2008,” said Tony Buccina, vice chairman • Tops and president of merchandising at The Bon-Ton Stores Inc. “But we did see some • Novelty knits increases in moderate price points, and • Prints we moved our investment to those areas in 2009 — that’s where we’re seeing the busi- • Jackets ness move until the market corrects.” Belk saw a similar trend of moderate outperforming better. “The whole bet- ter category has been challenged, as the higher price points have been a chal- Forecasted lenge,” said McKay Belk, president and chief merchandising officer of Belk Inc., fall trends adding the better department’s modern • Color offerings were outselling traditional. • Tailored looks “Clearly sportswear has been difficult for some time now, but it’s showing rela- • Tops tive signs of life this quarter,” said Lord • Skinny pants & Taylor chief executive officer Brendan Hoffman. “As spring deliveries hit the • Animal prints floor with brighter colors, lines like • Plaids Lauren and Kenneth Cole are looking bright and customers are responding.” Meanwhile, better brands — from Calvin Klein to Nine West to Rafaella and Kenneth Cole Retailers report the biggest bright spot is Liz tightening its collection, and Gleason projects it will New York — are trying to compete in this economic Claiborne, which Isaac Mizrahi started designing for maintain its $15 million to $18 million wholesale vol- environment by lowering their prices, or at least their spring. Five years after dropping the brand, Lord & ume); Tommy Hilfiger relaunched exclusively at Macy’s opening price points, by 10 to 30 percent. “Everyday Taylor is picking it up in several doors this spring and (where it added about 100 doors to total 570 for spring value” items that are on the low end of the price range then launching it “in a big way” this fall, according to as it increased sales to be Macy’s best-performing even without promotions are frequent bestsellers. Hoffman. At Bon-Ton, Liz Claiborne is performing “as better brand), and the Rafaella brand relaunched in Hoffman said the promotional level was still higher good, if not better, than anything else in the company,” 1,300 doors. For fall 2009, Nine West is relaunching its than he’d like to see for spring, but “inventory levels are according to Buccina. Macy Inc.’s chief merchandising sportswear with a new designer, and the company pre- more in line than they were in holiday, so it’s less about officer Jeff Gennette said the brand is exceeding plan, dicts it will go from its current 350 doors to double trying to work down the inventories and more about and Belk said the new product is performing decid- that by next year. working around customers’ expectations — everyone edly better than the pre-Mizrahi product. Rafaella’s namesake better business is off low- wants to know they are getting a value.” Of the approximately 1,000 doors Liz Claiborne single digits for spring after a “somewhat chal- “Better is probably struggling a little more than mod- is carried in, the company has installed nearly 30 lenging” February, Michalaros admitted. To deal erate because this customer has really been hit harder shop-in-shops so far and by the end of April, 50 are with the economy, Rafaella lowered its prices and than anyone else,” said Andrea Goldreyer, better ana- scheduled to be completed. In-store events with narrowed the product assortment. For fall, lyst for the Doneger Group. “But the better market for Mizrahi kicked off at Macy’s in New York, fol- Rafaella is focusing on its Ergo Fit slim- fall has worked to address what’s happening in the real lowed by Chicago, Charlotte, N.C., and then ming technology (a big trend in the main- world by going after items rather than collections.” the West Coast. stream sportswear world), its five-piece “Noticably there’s the most interview kit that is discounted when traction in the doors where all pieces are bought together and we’ve done the most,” said marketing “pants that work.” Dave McTague, executive “Rafaella has always stood for vice president of partnered amazing value and quality; how- brands at Liz Claiborne Inc., ever, we also want to be relevant to adding both the brand’s classics what she needs to spend money on and fashion were selling and that now,” said Michalaros. “Therefore, we increased sales in smaller sizes re- are tapping into her new-found need for the flect a new fashion-focused customer interview wardrobe, the perfect fitting pant, joining the brand. and looking and feeling slim has spawned our Although less high-profile, Calvin three big ideas this season.” Klein white label’s spring relaunch Kenneth Cole New York has also seen its with new licensee G-III Apparel Group customers gravitate to tailored looks, such as Ltd., following Kellwood Co., has also the jacket, as sales are up double digits for been well received. Not only has vol- spring, said Kenneth Cole Productions Inc. ceo ume increased by about 40 percent, as Jill Granoff. The brand, which Hoffman said the brand expanded into 250 from 150 was one of Lord & Taylor’s top two sellers in the better arena, has added opening price points The revamped Liz Claiborne New York shop-in-shop in Macy’s. doors, but the regular-priced sell-through rate has also doubled, according to Calvin that are 10 to 20 percent lower across all cat- Goldreyer said even brands normally focused on Klein Inc. ceo Tom Murry. He attributed the success egories, while maintaining the top price points collections have shifted to having key items make up both to improved product — citing improved synergy for the most innovative product. That makes the 45 to 60 percent of their overall assortment. Adrienne across the better line, as G-III already held the label’s retail price range $50 to $300 (the company de- Vittadini, which relaunched for fall 2008, is an example, outerwear and suits licenses — and to lowering prices clined to quote wholesale prices), and it is car- shifting from collection mode to key-item mentality for by 30 percent. “Before we were priced a little above the ried in about 400 doors. fall 2009. competition, which is never a good thing, particularly in “Despite the economy, our busi- “Even if the economy hadn’t been so tough, it would this economy,” said Murry. Kenneth Cole ness is trending up,” said Granoff. have been tough for us because we weren’t on the For the beginning of spring, only half the Calvin New York sales “We were ahead of the curve in of- right track,” said Mary Gleason, president of Adrienne Klein white label sportswear is from G-III (the other are up by fering well-priced designer fashion, Vittadini. “We started the relaunch with head-to-toe half is left over from when Kellwood held the license), double digits which is very attractive to consum- dressing, but for fall we really want to shift to modern but the line will be completely made by G-III for fall. for spring. ers in this economic environment.” WWD, WEDNESDAY, APRIL 15, 2009 9 WWD.COM BEAUTY BEAT IN BRIEF • FERRAGAMO MOVES: Linda Russell has been named senior vice president, merchandising and marketing at Ferragamo USA Inc. Thea Green Rolls Out Lashes She had been senior vice president, wholesale and merchandis- ing. Russell will continue to manage all aspects of merchandising LONDON — Nail salon owner Nivea, Thomass Team for Line Chantal Thomass and report to Vincent Ottomanelli, president and regional direc- Thea Green is batting for the cosmetics for Nivea. tor of Ferragamo USA Inc. Russell has taken on the additional false lashes industry. PARIS — Nivea has teamed responsibility of managing the day-to-day operations of the mar- The beauty executive, who with lingerie designer Chantal keting department. In addition, Anthony Camarata, senior vice this year fetes the 10th year Thomass to create a limited edi- president, sales, responsible for men’s wholesale at Ferragamo, of her U.K.-based Nails Inc. tion makeup collection due out will oversee the women’s wholesale division as well. The wom- nail salon business, is rolling in July in 16 European coun- en’s wholesale division had been handled by Russell. out false eyelashes brand Get tries. The Nivea & Chantal Lashed. The new venture, which Thomass line should be on coun- • WASIK JOINS STEPHENS: Kenneth Wasik has joined Stephens Inc. also includes a chain of eyelash ter for at least one year. as managing director focusing on underwriting and mergers and and brow bars, bowed in March. Thomass acted as artistic di- acquisitions in the consumer sector. He is based in the New York It will be introduced to 20 rector for the collection and was office of the Little Rock, Ark.-based investment banking and broker- Nails Inc. salons and spaces ad- involved with everything from to $14.84 at current exchange. age firm. Wasik was most recently managing director with Jefferies jacent to Nails Inc. counters in conceiving its packaging to se- This marks the first time & Co.’s consumer products team following posts with Houlihan department stores in the U.K. lecting colors. There will be eight Nivea has partnered with a Lokey Howard & Zukin and, earlier in his career, UBS Warburg. by the end of May. “We have no- lipsticks, six eye shadows and fashion designer on a makeup The firm recently also added Jennifer Herber to its New York office, ticed a gap in the market — we two blushes. Prices will range collection. also as a managing director in corporate finance. She was previous- want to create a brand, which from 8.20 to 11.20 euros, or $10.86 — Ryan Stevens ly executive director of the consumer-retail group of J.P. Morgan. offers lash services rather than products alone,” said Green. “If you visit Get Lashed for strip lash application, you will pur- chase the product, but we will apply this for you as many times as possible for free. THE EDGE YOU NEED FRESHNESS • TREND • VITAL ENERGY

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“We think that lashes are the ideal credit-crunch purchase,” she added. “Lashes will trans- form your whole appearance for an affordable price.” Get Lashed’s lineup includes 16 styles of lashes priced from 7 to 12 pounds, or $10.44 to $17.89. In addition, the brand offers brow-grooming services, including threading and tint- ing. While Get Lashed services will be offered next to Nails Inc. manicure stations, Green said they are considered separate brands. “We will link the two brands where we believe it will benefit the customer,” she added. “For example, if you visit Nails Inc. for a manicure or pedicure, we will offer 25 percent off at Get Lashed. Customers can visit one place for all their services, so they can save on time as well as on expense.” Sources estimate Get Lashed will generate first-year sales of 1 million pounds, or $1.5 million, whereas Nails Inc. is forecast to generate sales of 15 million pounds, or $22.4 million, this year. Plans are afoot to begin dis- tributing Nails Inc. internation- ally later this year. This month, Green will also introduce a Attend: 8666966020 limited edition collection of Exhibit: 2126864412 nail polishes to celebrate Nails Inc.’s first decade in business. The collection will contain five accessoriestheshow.com of the brand’s best-selling colors modamanhattan.com and five new shades for summer. Retailing at 15 pounds, or $22.36 fameshows.com per 10-ml. bottle, each item will be decorated with a remov- able Swarovski crystal-studded charm. Properties of Business Journals, Inc. — Brid Costello 10 WWD, WEDNESDAY, APRIL 15, 2009 WWD.COM Marketing Memorable Marketing: The Element of Surprise By Valerie Seckler This tactic was used in February at Target’s McQ Market, one of 10 pop-ups it has staged Surprise marketing is Target PREVIEWing since its first temporary shop in 2002. The pop- Alexander McQueen at a pop-up store on Manhattan’s up provided a sneak peak for shoppers and po- far West Side. It’s a phone number on customized Levi’s tential buzz for Target: McQueen’s apparel and jeans that leads to the brand’s concierge service. outerwear, priced from $19.99 to $129.99, wasn’t It’s not simply offering excellent service or quality being sold at the chain until 18 days later. products. By the second afternoon — Feb. 15 — of a two- Although many marketers are hitting notes consid- day, limited engagement, more than 1,000 fashion ered comfortable and familiar because of the recession, aficionados and others had found their way into sounding chords of surprise has merits, marketing con- the Target McQ Market, which housed Alexander sultant Andy Nulman said. This form of marketing cre- McQueen’s new McQ collection that drew a total of ates a sense of “pow,” versus those moments of “wow,” about 4,800 visitors, including guests at a preview he explained. It’s the difference between “total shock” for celebrities and media, said Joshua Thomas, a (pow) and “exceeding expectations” (wow), like the dif- Target spokesman. The dates were chosen to coin- ference between a “major upset” in sports (pow) and a cide with New York Fashion Week. “great game” (wow), or a “new hair color” (pow) and a Sitting across West Street from the Hudson “haircut” (wow). River, with traffic zipping by at high speed, the “It can make it more palatable, more bearable to take shop could have been easy to miss. It temporar- Target occupied an empty warehouse in Manhattan to stage its McQ something on” in a weak economy, said ily occupied the ground floor of Market, giving fashion fans a preview of Alexander McQueen’s new line. Nulman, the author of “Pow! Right an empty warehouse, the en- Between the Eyes (John Wiley & Sons; trance marked by split plastic drapes This triggered credit for a free medium pie at their local $22.95). “It can give you a jolt. You may (think car wash), metal pins “piercing” shop’s electronic cash register, even though the deal not buy, but you’ll get a lift from it.” the facade, arrow-in-Target-bull’s-eye hadn’t been green-lighted at corporate headquarters. Surprise is stumbling upon Target’s stencils, and the spray painted graffiti: When the dust cleared, 11,000 pizzas had been given McQ Market, which was so far over on “Target McQ Market.” away, as the password spread quickly online. In a show lower Manhattan’s West Side it was prac- The element of surprise continued good faith (and humor) to people disappointed when it tically in the water. Surprise marketing is inside. Dim lighting, androgynous poster nixed the giveaway, Domino’s offered a free dessert order finding the gift of a commemorative Citi models in klieg spotlights (“Rebel looks. of Cinna Stix via blogs that had spread the “bailout” pass- Field key fob on opening day on a table at Civil prices.”), and DJ Mel DeBarge word and in cell-phone text messages to customers in its Blue Smoke, a Danny Meyers restaurant spinning dance tunes like “December opt-in marketing program, said Tim McIntyre, vice presi- in the FlatIron District with an outpost at 1963 (Oh What a Night)” and “Could You dent of communications at Domino’s Pizza Inc. the Mets’ new home. It’s viewing a silent, Be Loved” set the scene for the McQ col- Marc Gobé, chief executive officer of Emotional 30-second TV commercial for Carmel Car lection’s unisex styles. Branding, believes people need change — and when and Limousine Service on ESPN, CNN The works of 10 New York City-based faced with too much similarity they will disconnect. and MSNBC in which the nationwide artists, such as paper sculptures with Brands that surprise people can communicate with firm promises in words crawling across gesso and enamel by Chris Caccamise them, Gobé has said. and computer screen savers by Trisha On Election Day, Oren’s Daily Roast, a New Baga, sprung from the shop’s York City chain of coffee shops, introduced clubby atmosphere. Curators and gave away “Blend 44” coffee consisting roamed and engaged visitors of beans symbolizing and chuckling over Blue Smoke s “Pow! Right in conversation. The pieces Barack Obama’s Kenyan and Hawaiian were chance finds amid ap- gave Citi Field key (Kona beans) roots, his days at Harvard Between the fob gifts to diners in Eyes” packs some parel displays set in front of Law School (Ethiopian Harrar) and his chain-link fences and rough- Manhattan to signal two years at Occidental College in Los surprises of its its presence. own, including two hewn, painted plywood. Angeles (L-a Minita Costa Rica.) The comedic forwards, “I like to present work in joke also references the 44th U.S. presi- one written by a different context for people dent’s junior and senior years at Columbia John Cleese, the who aren’t the usual art people,” University and his family’s new other by Craig said Caccamise, who didn’t expect to District of Columbia address, with Ferguson. be sought by fashion production house two kinds of Colombian beans. OBO to create two sculptures for Upon spotting a phone Devotee of surprise Andy Nulman accepted an impromptu audience Target’s pop-up. A sense of the unlikely also inspired number on the right thigh invite from Sting to join him in an eco-fund-raising concert in 2007. his “Fashion Designer ’09” and “Pat Benatar 1980,” of his customized Levi’s the screen: “In times of economic turmoil, we want to give pieces bringing the artist a $1,000 commission. An jeans, Nulman himself had you a moment of peace and quiet…on us.” Alexander McQueen quote in The New York Times a time-bombing moment. Surprise marketing offers “quality that fascinates,” about the designer’s new venture with Target — “I’m Nulman dialed the number such as Nulman experienced in a visit to Japan, where bringing my culture to them” — struck Caccamise as and discovered the brand’s he rode in taxi cabs with “lace-covered seats,” was of- “funny” and a show of “hubris,” and it became a type concierge service, which of- fered umbrella covers at stores so the umbrellas didn’t element in the “Fashion Designer ’09” sculpture. fered him and three guests a drip while he shopped, and was provided with “sparkling Another surprise tactic was exemplified in a huge “Champagne-fueled, one-hour clean” shirts and shorts to wear for his workout at a gym. Domino’s Pizza giveaway that resulted from a computer shopping experience” at Levi’s Nulman said surprise marketing moves beyond snafu. It qualified for what Nulman, president of mar- San Francisco flagship. “quality that is expected,” beyond the quality that would keting agency Airborne Mobile, calls time-bombing, or Another pow for Nulman was the discovery of his new, characterize, say, enjoying a good meal from Whole “secrecy up front, explosiveness down the road.” favorite, $9 pajamas at Wal-Mart that have supplanted his Foods or discovering cutting-edge designer fashions On the last day of March, Domino’s was scrambling Paul Smith pajamas as his top pair. Stranded without lost from Barneys New York. to shut an inadvertent freebie: It mistakenly gave away luggage for two days during a recent ski trip in Idaho, he Taking things out of context is one way to stir sur- $90,000 worth of pizzas, with one topping, at shops na- outfitted himself and his sons for just $279 at Wal-Mart. prise, like playing classical music in a locker room be- tionwide, many of them in Cincinnati and Salt Lake City. “Did you know you can get Levi’s for $25 at Wal-Mart?” fore a big game, serving Coca-Cola in Champagne flutes, Playing around with key words in Domino’s online search said Nulman, who nonetheless was wearing a Dubuc- or as Nulman put it in “Pow!”: “Anything that switches engine, someone entered the word “bailout,” which still designed, Sgt. Pepper-esque navy jacket as a shirt and two norms into one abnorm.” appears in the Web site’s Big Taste Bailout promotion. still prefers his denimwear premium and custom. Something for Everyone Family-Friendly Price, convenience and assortment. Those are among the key elements shared in a list of specialty, discount Retail Brands The top specialty, discount and and department stores considered to be the most “family friendly,” according department stores considered to a recent survey by Brand Keys, a New York-based brand and customer to be the most family-friendly. loyalty research consulting firm. “People are aggregating their dollars and their loyalty right now,” said 1. Macy’s Robert Passikoff, president and founder of the firm. “It’s easier for families to 2. Wal-Mart* shop at places like these, because of their merchandise range.” He noted the Kohl’s* top-ranked brands are meeting or exceeding consumers’ expectations. 4. Old Navy Number-one-ranked Macy’s is advertising on its Web site that online 5. Costco* shoppers can save 20 to 50 percent in the women’s, men’s, juniors, kids’, J.C. Penney* home, shoes, handbags and jewelry categories. Wal-Mart’s Web site features 7. J. Crew† testimonials from customers on why the store is their preferred shopping Dillard’s† destination. One woman responded, “It’s like a big family center — I can get 9. Marshalls food, school supplies; I can even get a bike for my child.” 10. H&M* And Kohl’s, which operates 1,022 stores in 49 states, is offering deals Kmart* on everything from women’s shoes to housewares, baking goods and clothing Source: 2009 Brand Keys Customer Loyalty Engagement and toys for children. Another section of its site is devoted to gift ideas for A shot of Old Navy’s most recent weekly in-store promotion, which features discounts Index; The firm surveyed 3,750 male and female Mother’s Day. — Cecily Hall for all members of the family, including infants, toddlers, children, men and women. respondents, ages 18 and older; * and † indicate ties. two opportunities to strut your stuff WWDDenim Package

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For more information on advertising, contact Christine Guilfoyle, publisher, at 212-630-4737, or your WWD sales representative. 12 WWD, WEDNESDAY, APRIL 15, 2009 WWD.COM Istithmar Pumping Cash Into Barneys Continued from page one about what this economy is going to look like through values. In retrospect, some believe Istithmar overpaid. cash, we are trying to send a signal that we are support- 2009. We [have been] structuring a solution to get through Jackson declined to specify Barneys’ top vendors. He ing the business.” 2009 and position us through 2010. We are convinced that did say there are some megabrands on the list, but not Barneys has been in negotiations with vendors and Barneys will be a long-term survivor. The retail environ- necessarily the names customers would think of walk- factors for weeks over payments and shipments. They ment is difficult. But when we look at the competition — ing up and down Fifth Avenue. Barneys officials have have also been seeking information from Barneys about Neiman Marcus, Saks and Nordstrom — we think we are previously cited Burberry, Hugo Boss, Giorgio Armani, the performance of its stores, its plans for the future doing better than they are.” Dolce & Gabbana, Versace, Prada, and how Barneys can help them grow their businesses. Istithmar’s infusion should ease con- Balenciaga, Ermenegildo Zegna, While Barneys maintains a strong identity and con- cerns about the business, which were Lanvin, Fendi, Jil Sander, Chloé tinues to carry expensive designer merchandise, it’s stoked Monday when Standard & Poor’s and Marc Jacobs as key vendors. been hard-hit by the recession, as have other luxury slapped Barneys with a downgrade. Asked “The top 10 or 12 vendors were players such as Neiman Marcus and Saks Fifth Avenue. to comment on the downgrade, Jackson very happy with the information On top of that, some newer Barneys stores, such as those said, “I view it as completely mystifying.” we shared,” Jackson said. “Any re- opened in Dallas, Las Vegas and Boston over the last Jackson said Tuesday’s disclosure of quests we viewed as reasonable, three years, have reportedly failed to gain traction. Istithmar’s additional support for Barneys they got. Some even got more than The funds come at a particularly crucial time, consid- was not accelerated by the S&P rating, we believe they were entitled to. ering Barneys is ordering fall goods, and on Thursday which went from “B-minus” down to “CCC.” Some information we viewed as will open a 90,000-square-foot replacement store in “We did not make a decision about the injec- proprietary. We don’t want certain Chicago, at 15 Oak Street. It’s airier and about twice the tion based on Standard & Poor’s,” Jackson information falling into the hands size of the store at 35 Oak Street, which has been doing said, noting Barneys had been conducting of competitors.” relatively well. Barneys’ top three performing stores are talks with factors and vendors and had been Earlier Tuesday, Jackson issued a those on Madison Avenue, in Beverly Hills and Chicago. working on the infusion well before. statement that said, “Istithmar World “Most of the reaction we have from ven- Capital has provided a significant dors and factors has been positive,” Jackson level of additional capital to support We [have been] structuring a said. “It’s not universal, but it’s positive.” Barneys New York. Working closely A less positive S&P cited a “deteriorat- with management, we believe that “solution to get through 2009 and ing liquidity position of the company as David Jackson this amount allows the company fi- demonstrated by the need for a cash infu- nancial flexibility to work with the position us through 2010. We are sion by Istithmar World.” But according company’s major vendors and finan- to Jackson, “Barneys is strong and has a strong parent.” cial intermediaries. The plan enables the company to meet convinced that Barneys will be a The infusion, he stressed, “shouldn’t be viewed as a sign its 2009 schedule of shipments. We will continue to monitor of weakness. It should be viewed as a positive thing.” the company’s performance, but we are confident that no long-term survivor.­ Jackson explained the Istithmar infusion is for those further injection is needed at this time.” vendors “we really wanted to make sure were ready to Barneys operates what it considers flagship stores in — David Jackson, Istithmar” World Capital ship for fall, and where we had been in active dialogue New York on Madison Avenue, Beverly Hills, Chicago, to craft a solution.” For spring 2009, deliveries to Barneys Boston, Dallas, San Francisco and Las Vegas. Barneys “Chicago has been a very good market for us,” Jackson went “more or less as expected,” Jackson said. “The ner- also has two regional stores, in Seattle and Chestnut Hill, said. “It’s been the best performer of the big three over vousness was for fall.” Barneys receives pre-fall shipments Mass.; 18 Co-Op stores; 13 outlets, and two semiannual the last couple of years, probably because the store in that in June, while the bulk of fall begins arriving in August. warehouse sales. Established in 2003, Istithmar is 100 per- market was too small for the volume we were doing. It was He said Barneys has about a dozen vendors it consid- cent owned by Dubai World, which is wholly owned by the doing an disproportionate amount of business for that ers “major — representing the vast preponderance of government of Dubai. In the three years since its incep- square footage. Now is a tough time for an expansion, but our sales.” tion, Istithmar has invested in over 30 companies in three we still believe in the Chicago market, long term.” The $780 million Barneys was purchased by Istithmar sectors -— consumer, industrial and financial services — Discussing Barneys’ overall business, Jackson said, “I in 2007 for over $900 million. Istithmar will eventually with assets of $9 billion. But Dubai, which has no oil or would still say it’s challenging. We are still seeing some try to sell the business, but that could be a long way off, natural gas reserves, has been hit hard by the recession, brights spots, some negative spots. Everybody is nervous considering the difficult state of retailing and declining with rising unemployment and plunging property values. MEMO PAD IF MORE PROOF WERE NEEDED: During the Tuesday and first obtained by Gawker. The York Times “Public Lives” profile of Proddow actually prefer when photos are not touched first quarter, magazine advertising revenue memo stipulates salary cuts of 6 percent from 2002. And perhaps most movingly, three up. In order to keep the photo-shoot ritual fell 20.2 percent, to an estimated $4.2 of all exempt employees and 3 percent of the children who were regulars in Proddow’s to which stars are accustomed, Lindbergh billion, while pages were down 26 percent, of nonexempt employees. Nonexempt Metropolitan Museum of Art “Pause for had their hair and makeup done, but all the according to the Publishers Information employees, who are entitled to overtime while Pegasus” class read poems and recollections makeup was then removed with a lotion. In Bureau. Across the top 12 magazine ad exempt employees are not, will see their of their beloved teacher. — I.C. the magazine, Lindbergh explains the lotion categories, it will come as no surprise workday changed from seven-and-a-half hours captures the light and gives the face its life. automotive represented the biggest decline, to eight, reducing the amount the company FACE VALUE: French Elle is getting plenty of The feature, titled “Stars Without Makeup,” down nearly 44 percent to an estimated pays in overtime. A spokeswoman declined buzz with this week’s issue, which features includes 11 black-and-white photos spread $199.6 million spent. In addition, retail further comment. She also addressed a Monica Bellucci on the cover in a white over 16 pages. — Chantal Goupil dropped 29.3 percent to an estimated $298 report in the New York Post last month Christian Dior cashmere sweater, but not million, apparel and accessories fell 20.5 that Hachette was considering moving a lick of makeup on her face — and no LONDON CALLING: Frida Giannini is lovesick percent to an estimated $360.8 million downtown from its Midtown West offices to retouching. Editor in chief Isabelle Maury for London. After cutting the ribbon on the and toiletries and cosmetics decreased 3.3 cut expenses, which some at the company credited photographer Peter Lindbergh for newly refurbished Gucci store on Sloane percent to an estimated $437.6 million. had privately attributed to a bargaining tactic being able to convince Bellucci and seven Street earlier this month and cohosting the PIB reported that some sectors within larger with the landlord at 1633 Broadway. The other famous women of a more mature ilk to opening party at the Saatchi Gallery, the ad categories saw an uptick in spending, spokeswoman said, “Moving downtown is pose under those conditions. They include Gucci creative director has decided to shoot including clothing accessories (in apparel an incorrect rumor. We haven’t made any Sophie Marceau, Ines de la Fressange, Eva the brand’s fall ad campaign in the British and accessories), shopping centers and decisions on a move.” — Irin Carmon Herzigova and Charlotte Rampling. Maury capital. Photographed by Inez van Lamsweerde discount department and variety stores (in insisted some stars, including Marceau, and Vinoodh Matadin in a north London retail) and personal-hygiene and health REMEMBERING PENNY: On the back of the studio, the campaign features Jacquetta products (in toiletries and cosmetics). program for In Style’s tribute to contributing Wheeler. “We’re in London, so of course I had And the outlook certainly doesn’t appear fine jewelry and watches editor Penny to have an English girl,” Giannini told WWD. any better for the remainder of the year. On Proddow, who died in February, were It will also feature non-English models Raquel Tuesday, ZenithOptimedia once again revised 10 “Pennyisms” compiled by longtime Zimmermann, Natasha Poly and Freja Beha. its forecast for global advertising, and now the collaborator Marion Fasel, including “I live The mood is similar to past seasons — “a agency is predicting global ad expenditures wrapped around an exclamation point.” The continuation of Frida’s Gucci generation,” to shrink by 6.9 percent over the course of memorial, held Monday at the Weill Recital according to a spokesman, and will break the year and by 8.7 percent in the United Hall at Carnegie Hall, eulogized Proddow for in the September issues of American and States alone. “Many are treating advertising her energy, creativity and enthusiasm, a sort of international editions of Vogue, Elle, GQ, as a discretionary expense, and one they punctuation mark to a life devoted to beautiful Harper’s Bazaar and Vanity Fair. find convenient to cut,” said analysts at objects and a love of classical history. Meanwhile, Burberry is reported to have ZenithOptimedia. “Ad expenditure correlates Martha Nelson, editor of Time Inc.’s Style nabbed Emma Watson for its fall campaign. A strongly with corporate profits, and the ad and Entertainment Group, which includes Burberry spokeswoman declined to comment market is unlikely to start its recovery until In Style, People and Entertainment Weekly, on a British press report, saying the project profits start to pick up again.” said Proddow represented “no snobbery, had not yet been finalized. The campaign The only sector that ZenithOptimedia only quality.” She added, “She wasn’t a will be unveiled at the end of May. expects to improve this year? The Internet, fashion person. Nor would you call her If Watson does appear, it’s likely she which is expected to grow by 8.6 percent in fashionable. But wow, did she have style.” won’t be the only star of the show: Just as spending, thanks to search advertising. Proddow and Fasel were, Nelson said, “the Burberry loves its young English movers and — Amy Wicks Bernstein and Woodward of jewelry.” shakers — past campaigns have included Ralph Esmerian of Fred Leighton, designers actor Alex Pettyfer, musician George Craig, PAY CUTS: Hachette Filipacchi Media became Robert Lee Morris, Robin Renzi and Philip and celebrity offspring Max Irons and the latest publishing company to implement Crangi, and Movado Group Inc. chief executive Theodora Richards — it also loves a group pay cuts, according to a memo by chief officer Efraim Grinberg also offered tributes. shot. The whole experience might be executive officer Alain Lemarchand released Journalist Chris Hedges read aloud his New The French Elle cover featuring Monica Bellucci. Hogwarts all over again. — Samantha Conti WWD, wednesday, april 15, 2009 13 WWD.COM WWD West Tommy Bahama Molds Women’s Overhaul By Khanh T.L. Tran PASADENA, Calif. — Tommy Bahama is trying to reinvigorate its women’s business, and the resortwear brand appears to be benefiting from a basic tool. Last spring, the Seattle-based company supplemented the no-frills haber- dasher forms in its freestanding stores with lithe female mannequins show- ing off halter dresses and bikinis. Since then, in the midst of a slowdown in apparel retail, women’s sales increased 5 percent to make up 25 percent of total sales in Tommy Bahama’s 80-plus branded stores. “The woman would walk into the store and say, ‘I want what’s on that mannequin,’ ” said Lynne Koplin, president of Tommy Bahama Group Inc.’s women’s division. “You’re not going to mean anything to women if you don’t show [the product].” Since joining Tommy Bahama in July 2005, after spending six years over- seeing the brand’s swimwear license at Apparel Ventures Inc., Koplin has taken cues from the contemporary fashion market to appeal to a 35-year-old customer, who is at least a decade younger than the shopper Tommy Bahama targeted when the women’s business launched in 1997. The changes Koplin implemented provide guidance on how to spruce up a women’s line spun off from a men’s brand that basically had shrunken printed silk camp shirts in smaller sizes for female customers. TYLER BOYE

In addition to using mannequins, Koplin also began offering separates in The introduction of female mannequins in BY the swim category, emphasizing solid colors over prints, shifting from an all- Tommy Bahama stores helped boost sales.

silk stock to easy-care textiles such as linen and a rayon-viscose blend, and PHOTOS boosting the number of dresses more than eightfold. An e-commerce site launched in October 2007. There are two women’s-only stores, on Santana The women’s line is wholesaled to Bloomingdale’s, Nordstrom, Von Maur Row in San Jose, Calif., and in Las Vegas’ Forum Shops at Caesars. and Macy’s on the West Coast, but the brand relies mostly on specialty shops Koplin also hired a staff for her division’s new headquarters here in a in Arizona, Hawaii, California, Texas, Florida and other resort spots across the 6,000-square-foot converted warehouse that houses 22 employees, including U.S. because of its focus on warm-weather looks. The network of independent sportswear design director Dominic Sabella, swim designer Harriet Fleming retailers ranges from Brave New World in Point Pleasant, N.J., and Fast Buck and a sample production room, a first for the company. She also stopped the Freddies in Key West, Fla., to Bermuda Bay Clothing in New Orleans and Artisan practice of contracting men’s factories to manufacture women’s clothes. Gems Boutique in Fountain Valley, Calif. About 75 percent of Tommy Bahama’s “Defining a women’s business in a company of men, about men, takes swim business is through the wholesale channels, a result of Koplin’s success time,” Koplin said. managing the swimwear license at Apparel Ventures. Yet time is a luxury in a recession. Tommy Bahama, which is part of Tommy Bahama increased its “We’re a specialty-store-based business in sportswear, with the intention Oxford Industries Inc., the Atlanta-based manufacturer that also owns dress offerings in response to grow into a bigger store distribution, but because of the seasonal nature Ben Sherman, Oxford Apparel and Lanier Clothes, is under pressure to to contemporary trends. of our product mix, we need to be geographically correct for a store,” Koplin bounce back from slumping sales. Tommy Bahama swung to an operat- said. “In swim, we have a more diversified distribution, covering both de- ing loss of $173.4 million in its latest fiscal year from operating income of $75.8 million partment and better specialty stores. Revenue growth is slow at this point in time, as it is a year ago, as revenue fell 9 percent to $421.7 million. with everyone, but our sell-throughs are strong and the product direction on target.” Oxford Industries posted a net loss of $265.8 million on total revenue of $947.5 mil- The brand reacted to slowing sales by reducing prices about 10 percent. Starting lion, compared with net income of $45.4 million on revenue of $1.09 billion a year ago. with next fall’s collection, retail prices will stay at less than $200. In the current Although women’s represents a small portion of Tommy Bahama’s business — 15 spring lineup, its priciest pieces include a $235 sleeveless jungle-print silk dress high- percent of total sales — company chief executive officer Terry Pillow said growing lighted by a contrasting geometric print at the hem. the women’s division is one of his top priorities, along with expanding internationally Koplin is a 25-year veteran of the swim business. She got her start in fashion work- and broadening the product mix. This holiday, Tommy Bahama will proffer women’s ing at the now defunct San Francisco department store I. Magnin, where she met T-shirts, sweatshirts and washed linen under a casual sportswear subbrand called swimwear legend Anne Cole. Later, Koplin ran the Anne Cole line and designer busi- Relax, retailing from $40 to $122. ness at Warnaco before working at Apparel Ventures. When she began running the “As we continue to build as a lifestyle brand, the women’s piece is clearly an im- swim license for Tommy Bahama at Apparel Ventures, Christian Francis Roth was portant piece of that,” Pillow said. “We won’t be truly happy with the women’s until Tommy Bahama’s design director. Roth eventually left, and Tommy Bahama’s license it’s 50 percent of our own stores’ business.” with Apparel Ventures expired at the same time her contract with the Gardena, Calif.- In Tommy Bahama’s store at The Grove shopping center in Los Angeles, one-third based swim manufacturer finished in 2005. At that point, Tommy Bahama asked her to of the space is devoted to women’s fashion, including $225 pineapple-print halter take the swim business in-house. dresses, $50 magenta bikini bottoms and $69 matching over-the-shoulder cup bras, “Instead of working on 10 brands [at Apparel Ventures] for swimwear, I felt it $78 fuchsia hats trimmed with silver rope, $125 leopard stone thong sandals and $128 would be worthwhile to work on one lifestyle brand,” Koplin said. brown polkadot halter dresses made of the same nylon-Lycra fabric used in the swim- And she doesn’t underestimate the allure a bikini has with a male customer. suits. Coconut-scented candles, tall bottles of Tommy Bahama-branded rum and palm- “It’s great what women’s swim does for a men’s brand,” she said. “It really kind of frond-etched cocktail glasses amplify the vibe that Tommy Bahama is Margaritaville makes the brand on the men’s side a little sexier and a little edgy — not stuffy and for Baby Boomers. traditional. It gives it another dimension.” Madison, Diavolina Leave Robertson Blvd. west watch INTUITION LOOKS EAST: Jay Hersh is taking her By Anne Riley-Katz glass display windows and a Intuition boutique to the Far East. 20-space parking lot. The bou- Hersh, who founded the trendy Los Angeles-based LOS ANGELES — Rising rents tiques are connected by an in- contemporary retail brand in 1999, has sold the pushed Robertson Boulevard terior walkway. exclusive international rights to Viceroy International, boutiques Madison and Diavolina The Madison portion of a Tokyo-based company headed by principal Randy to depart the trendy retail corri- the store has floors of poured Ito. The multimillion-dollar deal spans more than dor here and move to neighbor- black concrete and wrought- 10 years and is worth in the “tens of millions,” ing 3rd Street, where the adjoin- iron racks, with exposed beams Hersh said. She declined to elaborate on terms. ing contemporary stores opened and joists along the ceiling. “It was a way to expand and bring more Monday. Diavolina’s interior has a signa- revenue in without taking on more debt and nan

The decision by the sister ee ture leopard carpet with white helping do away with existing debt,” Hersh said. k stores, both owned by Mark and e and gold fixtures and raspberry- “These guys are definitely well-capitalized and

Emily Goldstein, is another chap- fani colored accents. are putting a lot financing on the table. They are ter in the evolution of Robertson ste Rents along Robertson were prepared to support the brand in the manner in from primarily independent bou- as high as $25 a square foot a which we’d like to be represented.” tiques to global brands. The interior of Madison. month last year, and now range Viceroy plans to open an Intuition store in After months of negotiations, PHOTO BY from $12 to $17 a square foot. Tokyo’s Aoyama district, possibly as soon as July. “my rent tripled in February 2009, and I knew my [sales] vol- But right around the corner on 3rd Street, considered a less de- Hersh had been in talks with Ito and his ume would have to go up really substantially to justify that sirable location, rents are in the $4- to $6-a-square-foot range. company since last year. She estimated that at high rent,” Mark Goldstein said. “This being a recession, Madison’s contemporary-centered selection includes lines least 30 percent of her Internet sales come from things didn’t go up, they went down.” like Current/Elliott, Stella McCartney and Costume National. overseas, including 10 to 15 percent from Japan. Other stores, including American Apparel, also have moved The store’s selection includes pieces such as Marc by Marc Hersh, who recently launched a line of from the two-block stretch because of rents and an increas- Jacobs handbags for about $400, jeans from Work Denim for accessories and jewelry for Target in the U.S., ingly corporate character on the street, where Chanel, Ralph about $180 and Sunner striped shirtdresses for about $260. is designing a collection for Viceroy that will be Lauren and Dolce & Gabbana’s D&G concept have opened flag- There are also boutiques in Brentwood, Malibu, Pacific exclusive to the Japanese stores. The line will ships, joining boutiques such as Kitson and Lisa Kline. Palisades and Westlake. Goldstein said he expects 3rd Street start with small leather goods, handbags and Madison was among the brands that pioneered Robertson, to be the top sales location. accessories from $50 to $750, which drive her launching 13 years ago. Goldstein bought Diavolina, which Diavolina is focused primarily on footwear, with a wide current business in Japan, and will expand to once had locations on Beverly and La Brea Boulevards, about range of shoes, including $565 gladiator-style Givenchy stilet- include other categories, like apparel. five years ago and moved to Robertson. tos and Dolce Vita sandals for about $100, along with jewelry Ito could not be reached for comment, but store The new 7,000-square-foot structure for the stores fea- like thin gold teardrop hoops from Hawaii-based Hula Hoops locations in other international markets, including tures modern aesthetics, a long white facade with large for $105 and perfume oils like Zuzuz Petals, retailing for $48. Dubai, are a possibility, Hersh said. — A.R.K. 14 WWD, wednesday, april 15, 2009 WWD.COM Financial For full daily stock changes, see WWD.com.

Recession Fears Linger as Stocks Drop 10 Best Performers By Liza Casabona and Evan Clark spending has hit bottom.” Some of that cold water hit retail in- DAILY COMPANIES P/E Volume Amt Retail shares fell 2.5 percent vestors as well. Tuesday as an unexpected drop in The S&P Retail Index fell 8.26 points High Low Last %Change March retail sales undermined hopes to 319.65 as the Dow Jones Industrial the recession might be near or even Average dipped 1.7 percent, or 137.63, past its low point. to 7,920.18, after closing above 8,000 for 0.98 0.77 LJ Intl. (JADE) 8.0 299665 0.94 +22.01 Sales at specialty stores last month two straight trading sessions. decreased a seasonally adjusted 1.8 per- Signs of stabilization in consumer 2.91 1.75 Tandy Brands (TBAC) - 14577 2.05 +18.50 cent versus February, while department spending have helped retail shares re- store sales fell 0.3 percent, bound more robustly from the Commerce Department recent lows than the market 1.79 1.55 Parlux Fragrances (PARL) - 177499 1.68 +9.09 reported. Compared with a overall. Retail shares are year earlier, specialty store up 43.2 percent since hitting 3.84 3.52 Bulgari * (BUL:MI) 13.9 5478479 3.82 +8.29 sales declined 5.1 percent wwD their March 6 low and the to $17.9 billion and depart- Dow is ahead a lesser 23 per- 359.50 340.75 Burberry * (BRBY:L) 10.6 3839471 355.00 +7.58 ment store sales dropped cent since its March 9 nadir. 5.5 percent to $16.1 billion. INDEX Shares of The Talbots 13.67 12.90 Luxottica * (LUX:MI) 16.0 1468786 13.46 +5.98 Sales at all retail and Inc. were hit particularly food service providers slid hard Tuesday, falling 25 1.1 percent in March from Composite percent to $3.43 as inves- 12.75 11.28 Lululemon (LULU) 15.4 1144526 12.40 +5.17 the preceding month, fol- 707.03 tors reacted to news of the lowing a 0.3 percent in- retailer’s $366.5 million 15.60 14.12 Dress Barn (DBRN) 11.2 2567482 14.70 +4.93 crease in February and a fourth-quarter loss. 1.8 percent rise in January. Other decliners in- 9.31 8.21 Zumiez (ZUMZ) 17.3 692538 8.97 +4.79 Economists were looking cluded Saks Inc., down 8.4 for a much stronger 0.3 per- percent to $2.62; AnnTaylor 33.65 31.90 Swatch Group * (UHRN:SW) - 194719 33.25 +4.56 cent gain last month. Stores Corp., 8 percent to The government figures $5.86, and Macy’s Inc., 7.3 offer a broader view of percent to $11.99. March sales than same-store -15.56 Still, the Conference sales reports from major Board reported that chief 10 Worst Performers chains, which were released executive officers became last week and, hurt by a small- less pessimistic during the DAILY COMPANIES P/E Volume Amt er-than-expected increase at Wal-Mart first quarter, even as their outlook for Stores Inc., were weaker than expected. employment remained gloomy. Its CEO High Low Last %Change “Clothing and apparel stores were Confidence measure rose to 30, up from slashing prices at a very steep pace [in its all-time low of 24 during the final March],” said Richard Yamarone, director quarter of 2008. The scale runs from zero 3.89 3.28 Talbots (TLB) - 1785685 3.43 -24.95 of economic research at Argus Research to 100, with 50 representing an even split Corp. “At the same time, volumes were of favorable and unfavorable responses. weak because we are in the midst of a Twenty-six percent of ceo’s said they 0.26 0.20 Phoenix Footwear (PXG) - 4750 0.2101 -15.96 sharp consumer recession. The combina- expected improvement in their own in- tion of falling prices and extremely weak dustries in the next half year, more than 4.20 3.58 CBL (CBL) 20.5 3795491 3.61 -13.22 volume is a recipe for poor sales perfor- double the 12 percent saying the same mance and that’s what we got last month.” thing three months earlier. About 17 6.71 5.23 Penn Real Estate (PEI) - 1401509 5.25 -12.21 Yamarone said April sales, which percent expect general economic condi- will include Easter this year, could turn tions to improve in the next six months, 2.28 1.96 Glimcher (GRT) - 332582 1.97 -11.26 positive again. up from about 11 percent. Calling the report “disappointing,” However, less than 3 percent of the 0.44 0.36 Eddie Bauer (EBHI) - 1455333 0.383 -10.89 Patrick Newport, U.S. economist at IHS ceo’s polled expect growth in employ- Global Insight, said, “Pending April’s ment in their own industries, down from release, March’s estimates throw cold 26 percent a year ago. 10.53 8.97 Kimco Realty (KIM) 11.5 14231353 9.07 -10.82 water on the notion that consumer — With contributions from Arnold J. Karr 14.19 11.56 Macerich (MAC) 3.9 6502462 11.9 -9.85 Domestic Wholesale Apparel Prices Up in March 17.48 15.78 Cherokee (CHKE) 10.1 38706 15.84 -9.79 WASHINGTON — Wholesale prices for blouses were up 3.1 percent and dress 36.77 32.78 Regency Centers (REG) 18.8 3326018 32.9 -9.59 U.S.-made apparel increased 0.2 per- prices increased 2.2 percent in year- cent in March compared with February, to-year comparisons. Knit shirts and and advanced 1.8 percent from a year blouses increased 1.4 percent in the * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on earlier, the Labor Department said same period. Wholesale prices for tai- the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss Tuesday. lored jackets and vests, and jeans and francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. Women’s and girls’ domestic apparel slacks gained 0.8 percent and 0.3 per- prices declined 0.1 percent, but were up cent, respectively, compared with the 2.1 percent in year-over-year compari- previous year. sons, according to the Producer Price Men’s work clothing prices, exclud- Woolworth Deutschland Files for Bankruptcy Index. Prices for men’s and boys’ appar- ing work shirts, increased 0.9 percent in el increased 0.2 percent in March and March and 2.8 percent year-over-year. By Melissa Drier 2007 net sales reached 730 million euros, 2.2 percent in the 12 months. Prices for suits declined 0.7 percent in or $1 billion at an average exchange rate Prices for all goods manufactured in March but increased 3.6 percent from BERLIN — German retailer Woolworth for the year, representing a decline of 8.4 the U.S. decreased a seasonally adjust- the previous year. Wholesale prices for Deutschland GmbH & Co. KG confirmed percent. ed 1.2 percent in March. The decline woven shirts were flat compared with Tuesday it filed for bankruptcy over The bankruptcy of Woolworth followed increases of 0.1 percent and the previous month, but increased 4.4 Easter weekend. Deutschland marks the second time in 0.8 percent in February and January, percent year-to-year. Founded in 1926 and separated from recent months a retailer bearing the respectively. Prices for textile mill goods, primar- the American parent company in 1998, iconic name has hit financial difficulty. “Although fears of deflation have ily apparel fabric, declined 0.3 percent Woolworth Germany operates 330 stores In November, Woolworth Group plc in eased as global commodity prices have in March, but increased 2.1 percent in Germany and Austria and employs the U.K., which had no relation to the stabilized, [Tuesday’s] PPI report em- from a year earlier. Textile product around 11,000. The British financial in- German chain, filed for administration, phasizes that deflation rather than infla- mills prices, mainly home furnishing vestment firm Argyll Partners took over and all 807 of its remaining stores were tion remains the primary risk for now,” and industrial fabrics, increased 0.3 the challenged retail chain from Electra subsequently closed in January. said Nigel Gault, chief U.S. economist at percent month-to-month and 3.2 percent Private Equity in late 2007. As part of In the U.S., the Woolworth name has IHS Global Insight. year-over-year. that deal, Cerberus Capital Management been out of use for a dozen years. F.W. However, the PPI for apparel is not Deeper in the pipeline, prices for LP bought and leased back around 100 Woolworth Co. closed its Woolco division considered a true indicator, since a synthetic fibers declined 3.7 percent in Woolworth properties. in 1983 and its Woolworth variety stores vast majority of clothing sold at retail March and fell 4.5 percent in 12-month The most recent Woolworth chief ex- in 1997. Most of its Canadian opera- is imported. comparisons. Yarn prices dropped 1.3 ecutive officer, former Lidl supermarket tions were sold to Wal-Mart Stores Inc., Input costs and finished goods pric- percent month-to-month and decreased chain manager Stefan Rohrer, resigned which, also in 1997, replaced it as one of es were soft in March because weak 2.8 percent year-over-year. Greige fab- his post at the beginning of April after the component stocks on the Dow Jones demand has lessened pricing power, ric declined 0.6 percent in March, but only four weeks on the job. While his pre- Industrial Average. Gault said. increased 4.7 percent from a year ear- decessor Robert Brech said Woolworth That same year, the company, by this Wholesale prices in March for lier. Finished fabrics declined 0.4 per- could be back in the black this year, sales time focused on athletic footwear and women’s and girls’ apparel remained cent in March, but were up 3 percent figures are not available for the short- apparel through its Foot Locker division, flat for all categories from the previ- year-to-year. ened fiscal year of 2008 that ended last changed its name to Venator. It would be- ous month. Prices for woven shirts and — L.C. Sept. 30. According to industry sources, come Foot Locker Inc. in 2001. WWD, WEDNESDAY, APRIL 15, 2009 15 WWD.COM/CLASSIFIEDS

For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise. Spaces Investment Opportunity COMMERCIAL Lambertson Truex LLC is receiving sealed bids for the sale of REAL ESTATE its business operations and/or substantially all of its assets and brand. Bids must be received by April 22, 2009 and must conform to certain pre-defined forms and procedures. Man- ageable volume of due diligence to review. Interested par- BALDANZA CONSULTING ties should contact its attorney Adam Hiller at (302) 339- Turnaround Specialist: operating ex- 8776 immediately to sign non-disclosure agreement, obtain ASSISTANT – OPERATIONS EXECUTIVE pense reduction, sourcing improve- ment, revenue expansion and product bid procedures, and conduct due diligence. Manage and oversee the Los Angeles operation in terms of inventories, refocusing. on-orders and financial aspects of four divisions affiliated with J-Brand BIG SHOWROOM/ OFFICE [email protected] W. 38TH. 7TH & 8TH AVE. 914.671.9902 Inc. Minimum 5-10 years knit experience. Report directly to COO. Salary BIG WINDOW, 2500ST. $2800/MONTH commensurate with experience. E-Mail to: [email protected] + UTILITY. (917) 291-6085 Pattern/Sample/Production FASHION LOFT Any style uniform/fashions Stretch knits/woven Cut&sew Designer SHOWROOMS Call;718-539-2475/Brenda $100-120K and SUITES E-mail: [email protected] THE BRYANT PARK HOTEL Los Angeles location. Daily and Weekly Rates 212-642-2166 Strong current experience PATTERNS, SAMPLES, in Junior active wear /work SHOWROOM SPACE out wear required. Licensed PRODUCTIONS 39th/7th ave. Contemporary. All lines, Any styles. Fine Fast Service. brand. Growing company. 1200 sqft. For share. $1250. Call Sherry 212-719-0622. [email protected] 917-673-2599 973-564-9236 BRAND DIRECTOR Patterns, Samples, Contemporary brand seeks Brand Director with 5+ yrs experience. Productions, Cutting Any styles. Fine, fast work. Responsiblities include: Call Lucy 212-840-1136 •Merchandising •Co-ordinating wholesale & retail strategy New York City •Interfacing with international licensees Buying Office PATTERNS, SAMPLES, •Ensuring consisitency in all brand collateral Apparel Sales - West Coast Region Garment District PRODUCTIONS Full service shop to the trade. Please forward resumes w/salary req: [email protected] San Francisco based Fitness/Activewear co seeks talented Closeout Wanted Fine fast work. 212-869-2699. salesperson w/estab customer base to manage WC territory, Deals Only w/focus on promotion of private label & brand Activewear. Forman Mills is looking to move its ACCESSORY JOBS 2009!! MERCHANDISER buying offices to NYC. 6-12,000 sq feet Acct Exec/Hosiery-Mid Tier Exp-100K+ Min 3 years exp. merchandising Strong mgmt skills & proven ability to develop new accounts needed. Below market rents/sublets. Printing Service A/P, A/R, Chargeback’s – Exp!!! - 45K Bridge and Costume Jewelry to major req’d. Must be an organized self-starter. F/T. Full benefits. Contact Rick Forman. E-mail: High tech digital prints on knits and Bookkeeper w/customs-import exp! retail customers. Thorough understanding [email protected] [email protected]. woven in any size; fast service. Private Label Sales-Solid Belt Exp - $$$ of materials, manufacturing processes 856-486-1447 Contact: [email protected] ACCESSORY EXECUTIVES, INC and sourcing. Ability to identify trends Call for details on jobs@ (212)213-6386 and merchandise to various market Email to: [email protected] segments. Highly organized, detail orient- ed with strong communications and computer skills. Travel required. Send ACCOUNTANT resume with salary history to: Seeking an Accountant w/ 3-5 yrs exp [email protected] in retail accounting. Daily cash, sales, credit card & bank reconciliations. Sales & use tax filings. G/L account analysis of all balance sheetaccounts. Point of Sales stock adjustments, inventory, gross profit. Month end accounting close, general ledger inter- Sales-Missy Contemp Sweaters $$Open faces & recording of data from multi- Sales-Catalogue Sweaters $$Open ple systems. Knowledge of Designer-Sexy Intimates to $75K E-Commerce financial & operational F/C Bookkeeper to $50K activities. Must have Great Plains Call 212-213-6381 or email resume to: experience. Submit resumes to: [email protected] [email protected] BOOKKEEPER Supply Chain Manager Wholesaler is looking for a 10 year min. Large Intimate Apparel Company exp’d bookkeeper to work, twice a week. seeks highly motivated and detail oriented Send resume to: [email protected] individual to head logistics on major or fax to: 212-764-6987 account, serving as liaison between sales/merchandising and production. EDI, Accounting, Etc. Responsibilities include driving the Intimate apparel company seeks indi- QA approval process, monitoring and vidual with EDI, invoicing, and tracking all shipments, communicating acconting exp to handle this dept. NJ with overseas buying offices and location. Fax resume 201-871-9790 or spearheading the company’s e-mail: [email protected] sustainability initiative. Candidates must have thorough knowledge and understanding of the production and GERBER TECHNICIAN development process, as well as demon- Digitizer, grader and marker technician strate strong communication, analytical wanted for luxury NY brand. Gerber and computer skills. Please send resumes Accumark 8.0 & some pattern making to: [email protected] knowledge a must. [email protected] TECH DIR/LARGE SIZE $130K+++ KNITWEAR DESIGNER Better Collection. Sprvs 5. Must come Contemporary collection seeks an as- from Lg Size Bet Contemp Mkt. sociate knitwear designer to join our [email protected] or 212-947-3400 successful company. Duties include: working directly with creative director, designing & preparing collection, sourcing yarn, communicating with factories Technical Design Assistant and suppliers. Candidate must possess Fast paced Childrenswear Co seeks a technical knit background and should motivated, team player able to correct have minimum five years experience. patterns & measure & evaluate garments. Fax or email resumes to: Personnel Great Opp. Wal-Mart exp plus. Fax / email 646-349-4367 / [email protected] resume: 2129678631/[email protected]

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