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Paris Linge Inside: SAKS FIFTH AVENUE’S REBRANDING PLAN/2 Pg. 13-21 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • December 13, 2004 • $2.00 rie Preview Accessories/Innerwear/Legwear Staying In NEW YORK — Slipping into something a little more comfortable means exactly that. This season, designers are in the mood for . Here, Josie’s hooded polyester terry cloth sweatshirt. For more, see pages 6 and 7. Y CLARKE; STYLED BY BOBBI QUEEN Y CLARKE; STYLED BY

WWD Exclusive

T NYC; ASSISTANT: HOLL ASSISTANT: FASHION T NYC; Tommy’s Big Move: Hilfiger Said Buying

Y ZARAJOZA/MANAGEMEN BRYAN Karl Lagerfeld By Lisa Lockwood NEW YORK — Karl Lagerfeld has a surprising new parent — and it’s none other than .

ARREN TRICOMI MANAGEMENT; MAKEUP B ARREN TRICOMI MANAGEMENT; Fresh off his wildly successful collaboration with H&M and a trip to Tokyo where he inaugurated the opening of the largest Chanel store in the world, Lagerfeld is turning the spotlight on his own brands. He is expected to announce YNCH AT TRUMP; HAIR BY YUSEF/W TRUMP; HAIR BY YNCH AT today that he has sold the Karl Lagerfeld trademarks to Tommy Hilfiger Corp., the $1.88 billion apparel firm, for an undisclosed amount of cash. See Designer, Page32 PHOTO BY KYLE ERICKSEN; MODEL: NERRY L KYLE PHOTO BY 2 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM WWDMONDAY SFA Puts Forth a ‘New Vision’ Accessories/Innerwear/Legwear for any incoming management for. The Fallon research helped GENERAL By David Moin Karl Lagerfeld is expected to announce today that he has sold his signature to devise a rallying cry to en- form the basis of the Saks “ NEW YORK — After a year of courage workers, and to lay out filter” roadmap for the future and 1 trademarks to Tommy Hilfiger Corp. for an undisclosed amount of cash. sweeping management changes, big objectives, which Saks man- became the outline for manage- After a year of sweeping management changes and store closings, Saks store closings and self-analysis, agement has done. It’s another ment’s message to employees. 2 Fifth Avenue has a bold strategy that calls for a “retail revolution.” Saks Fifth Avenue has a strategy matter to translate the talk into “We did a lot of research with for the future, and it calls for no action and effectively execute to Fallon and also used different EYE: If there was a common theme to the Neue Galerie’s Winter Gala it was less than a “retail revolution.” achieve the goals. sources and formed what we 4 change…Planning “To Russia With Love” in TriBeCa. Among the objectives: elevat- However, the new Saks exec- want to project as the new vision FASHION: The season’s coziest, frills-free loungewear looks are perfect for ing service, targeting a younger utive team has been on the road for Saks Fifth Avenue,” said Fred 6 those days spent curled up with a good book. audience and bigger apparel to show that change is in the Wilson, the chairman and chief spenders. On the selling floor, works for a company that needs executive officer of Saks Fifth The race to appoint a new director-general to head the WTO intensified with the intent is to blend brands to it. SFA has a murky identity and Avenue Enterprises. Wilson said 12 France formally nominating former EU Trade Commissioner Pascal Lamy. project a more modern style and performance has lagged the the executive committee as been Classified Advertisements ...... 34-35 create a greater spectacle. competition. Neiman Marcus on the road since March and con- While management has yet to and Nordstrom just keep out- tinues to make presentations. To e-mail reporters and editors at WWD, the address is publicly articulate the game pacing Saks, with Neiman’s re- “It’s important. There’s a lot of [email protected], using the individual’s name. plan, the executive team has cently showing up to four times action taking place in a whole WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 conducted PowerPoint presen- the rate of profitability. number of areas,” Wilson added, FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. tations in the past few seasons Earlier this year, the Fallon without divulging details. VOLUME 188, NO. 123. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue in January, May, June and November; two additional issues in February, April, September, October and December; and three to motivate its 12,000 associates Brand Consulting group inter- According to sources, the additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 toward higher standards of serv- viewed vendors, customers and presentation, called “Saks Fifth West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; ice and provide the vision of store employees about what Saks Avenue: Creating a Retail Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior what’s ahead. It’s not unusual stands for, and what it should stand Continued on page 28 Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is CITA Denies Goods Over Quota in Jan. required for change of address. Please give both new and old address as printed 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, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, By Kristi Ellis pending on country, mode of goes on 12 categories, and anoth- please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild shipment and other factors,” er five categories are on hold. 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 WASHINGTON — Retailers and said a statement from CITA. “If The apparel categories that could these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. importers are facing the first an importer chose to have his be locked out of the U.S. until WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED pinch from the impending non- product exported before Jan. 1 Feb. 1 if U.S. companies over- MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART quota world. and the product is a quota prod- shipped this year include wool WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED The interagency Committee for uct, there is a possibility the from Bulgaria, and TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE the Implementation of Textile quota would have filled prior to man-made fiber from China, ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. Agreements sent a shock wave the end of 2004. This situation cotton and man-made fiber - through the retailing and import- would have been a violation of ing and from China, MONDAY: The Commerce Department releases the ing community last week with a the agreement between the U.S. men’s and boys’ woven from November retail sales report. directive to U.S. Customs & and the exporting country.” India, wool coats from Malaysia, Border Protection to deny entry Executives expected over- men’s and boys’ wool coats TUESDAY: The Commerce Department releases the in January to any apparel and tex- shipped goods in 2004 to automat- and wool from the October import and trade report. tile products that were shipped ically be allowed entry on Jan. 1 Philippines. Cotton sheets, shop Inditex reports third-quarter sales and earnings. over their quota limits this year. because that is the date global towels, man-made fiber pillow- U.S. retailers, apparel manu- quotas on apparel and textiles cases and sheets from Pakistan THURSDAY: Nike Inc. reports second-quarter sales and facturers and importers ex- will be eliminated among World are also at risk. earnings. pressed outrage over CITA’s de- Trade Organization countries. “We asked CITA for one thing: cision, which some deemed Further compounding the predictability,” said Peter Gaabe, FRIDAY: The Labor Department releases the Consumer “punitive.” problem for U.S firms, CITA an- chief operating officer of Carole Price Index for November.

In the past, if U.S. importers nounced it will allow in only 5 Hochman Designs. “But they COMING THIS WEEK overshipped merchandise in a percent of each category’s limits waited 20 days before the end of category that had been embar- per month, beginning in Febru- the year to confirm how they goed, executives would place the ary. CITA warned importers in would process goods through the goods in a bonded warehouse June that it reserved the right to conversion period. I think it’s a until the end of the year and deny entry to goods that have shame our own government is In Brief bring them into the U.S. in a new been shipped in excess of quota damaging the very industry they quota year after Jan. 1. Customs limits. It did not issue its final di- are responsible for protecting.” ● ZALE AMENDS TERMS: Zale Corp. has amended the terms of its would then charge the amount of rective, however, until Thursday. One U.S. manufacturing exec- secured $500 million credit facility, extending the maturity date by the goods against the country’s There was a general concern utive, who requested anonymity, one year until August 2009. The company said last week that certain quota limits in the new year. that companies might be stockpil- said CITA’s action will cost his fees and interest rate margins are also reduced under the amended But CITA’s new directive for ing products in warehouses at company $250,000 this month agreement. The credit facility will mainly be used by Dallas-based goods overshipped in 2004 is un- the end of the year, particularly alone. He said he had a ship- Zale for working capital, to finance capital expenditures and for precedented, importers said, and those made in China, with the ment of cotton and man-made other general corporate purposes. Bank of America, J.P. Morgan caught many companies off guard. strategy of flooding the market in fiber underwear arrive from Chase Bank and Congress Financial Corp. are agents for the facility. “If an importer had waited January once global quotas were India 10 days ago. It took five until Jan.1 to have his order removed. CITA’s action will pre- days to clear Customs, and dur- ● SCOOP DEAL: Wholesaling to another retailer for the first time, shipped from an exporting vent some import surges from ing that five days the category J. Crew said it will sell Scoop NYC an exclusive collection of tai- country, it would have arrived — happening in the short term. embargoed, he said. lored men’s haberdashery shirting. The signature J. Crew collec- most likely around Feb. 1 — de- Customs has placed embar- Brenda Jacobs, counsel for tion offers 25 handmade woven shirts in ginghams, stripes and the U.S. Association of Importers solids, and traditional button-down and point collars. Each style is of Textiles & Apparel, said, “This made with Italian 100-2 ply fabric with a sueded texture finish accomplishes nothing. It’s just and a broken-in wash. Retail prices range from $128 to $136. The punitive. This is the first time shirts will be available in January at the six Scoop stores that sell CITA has denied entry on goods men’s wear: 1275 Third Avenue and 873 Washington Street in for a month.” Manhattan; 47 Newton Lane in East Hampton, N.Y.; 1901 Collins Jacobs said she represents Avenue in Miami; 283 Greenwich Avenue in Greenwich, Conn., one company that imported wool and in the Forum Shops at Caesars in Las Vegas. coats from Bulgaria but got caught in an embargo at the end ● OAKLEY ADIEU: Oakley Inc. announced the resignation of of November. The company had Irene Miller from the company’s board of directors after nine to store the coats in a bonded years. She is the chief executive officer of Akim Inc., an invest- warehouse and expected to ob- ment management and consulting firm, and serves as an outside tain them on Jan. 1. director on Coach’s board of directors. Oakley will fill Miller’s “What is he going to do with board seat with another independent director. wool coats in February?” Jacobs asked rhetorically. “He’ll have to send them back to Bulgaria.” Erik Autor, vice president and international trade counsel at the Clarification National Retail Federation, said, J.C. Penney expects comparable store sales in the combined “CITA is dragging this out as long November to December period to be up in the low single digits as it can. It is really just an exten- compared with last year. A story on page 2, Dec. 10, gave an incor- sion of quotas for another month, rect projection for December. if not longer.” circuit intermezzo accessoriecircuit intermezzocollections January 9-11,2005 The Show Piers 12th Avenue at 55th Street, NYC Photo & Business ID Enforced for Admission 9am–6pm Daily, 9am–5pm Last Day An ENK International Event Phone: 212.759.8055 Fax: 212.758.3403 Email: [email protected]

Spring/Summer 05 4 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM Karen Groos and Lillian von Stauffenberg Model Homes NEW YORK — It’s after lunch in Natalia Vodianova’s TriBeCa loft and she, her husband Justin Portman and their three- year-old son Lucas are doing a tasting with caterers. They are planning Wednesday evening’s benefit “To Russia With Love,” the first event for the Russian model’s new charity, the Naked Heart Foundation. As Portman tries a miniature ice cream ball and Vodianova thumbs through a Russian cookbook to show the kinds of hors d’oeuvres she’d like to be passed, Lucas picks the caviar off of several melba toasts before stuffing the fish eggs into his mouth. “He loves caviar,” says Vodianova, laughing. The scene is a far cry from Vodianova’s youth in Nizhny Novgorod, Russia, and her charity’s focus is to make her home- land a better place for children. The goal is to bring prefabricated playhouses (each including jungle gyms, a doll house, a slide and a ball pit) to the country. The houses cost between $150,000 and $200,000 each and will feature a cafe in the hopes that they will ultimately become self-sufficient. The first, she hopes, will go up in Beslan, the site of the school tragedy in September. (Song Airlines, which is sponsoring Wednesday’s event, will also be putting a prefab playground Ever Neue up in its JFK terminal.) Coralie Charriol before... …and after. NEW YORK — Perhaps it’s the time of year, but if there was a common theme to the Neue Galerie’s Winter Gala on last Thursday’s rainy Aerin Lauder eye® night, it was change. Lillian von Stauffenberg and Karen Groos made themselves at home as they huddled on a couch together chatting about von Stauffenberg’s impending move to London. “My husband is so happy, and I’m so sad,” she lamented. Meanwhile, perhaps it was the inclement weather that led Coralie Charriol to run home and change from a turquoise into a black Oscar de la Renta number. “I’m trying to create some buzz,” she joked. “The first one just felt too ‘resort.’” Yet co-chair Aerin Lauder stuck to her Proenza Schouler dress, adding that “I love those boys.” Lauren duPont, Celerie Kemble, Tinsley Mortimer and Alexis Bryan, on the other hand, all wore by Akris, the evening’s sponsor. The relentless rain made for damp furs and sodden trains as the social set arrived, but once inside the elegant environs, guests managed to dry off, drink, dance and, of course, admire the art. Standing on the staircase, Peter Som surveyed the scene. “I always just imagine that I live here,” he said. “It would be nice Natalia to come home to this sweeping staircase and have violins Vodianova playing a Viennese waltz.” The night before, Bob Colacello, Nan Kempner, Francisco “In Russia, children become adults Costa, Carolina Herrera, Muffie Potter Aston, Tiffany Dubin and so quickly,” Vodianova explains. “There Donna and Gabby Karan were among those who gathered at are no child-friendly, colorful places ex- Stephan Weiss’ studio in the West Village for the annual cept McDonald’s. It’s all grayness and holiday dinner for the AIDS Community Research Initiative of misery. There’s not even a place where America (ACRIA). you can go for ice cream.” Actress Bryce Dallas Howard reflected on how her life has The charity event will transform Diane changed since she starred in this summer’s “The Village.” She von Furstenberg’s studio into a Russian will soon begin practicing her equestrian skills in order to film winterland. “I see it like the Snow Queen “Mary Queen of Scots” next year. story, with splashes of red,” Vodianova “Just today Calvin Klein sent a bunch of over to my says. There will be “real Russian vodka” hotel room, and they said to keep them,” the fresh-faced star (“In fact, I would like one right now.”), exclaimed. “I called one of my friends immediately and told borscht, chicken kiev, blinis and caviar. her: ‘The rumors are true. Actresses do get free shoes!’ ” “All my friends are flying half a kilo from Lauren duPont Russia,” she boasts. The ACRIA dinner. She has used her supermodel con- nections to pull in fabulous auction items for the event: Helena Christensen cooking you dinner; Bruce Weber doing your family portrait; one of the Annie Leibovitz photos from Vodianova’s “Alice in Wonderland” series from Vogue last December; an Irving Penn print from 1971. The pièce de résistance might be considered the night out, for you and a friend, with Vodianova and her fellow models Jacquetta Wheeler, Daria and Liya Kebede. It could involve dinner at Spice Market (“where they can be seen,” she says) and “if we like them, maybe we’ll take them dancing at Hiro.” How much does she think that will go for? “Expensive, I hope,” Vodianova chuckles. “Normally I don’t wake up for less than…well, you know that joke.” She made the rounds all last week (from the Neue Galerie to the Met) in the hopes of sparking interest for her event. “We need lots of heavy hitters,” she says. “Do you know any?” Francisco Costa and Bryce — Marshall Heyman MCMULLAN FARRELL/PATRICK BILLY STEVE EICHNER; DUPONT BY TY PHOTOS BY Dallas Howard at ACRIA. R PA

6 WWD, MONDAY, DECEMBER 13, 2004

Easy Like Sunday NEW YORK — Ever have one of those days when you just want to stay in and curl up with a good book? The season’s coziest, frills-free loungewear makes the idea even more tempting.

Loungewear Betty’s pinup printed cotton flannel . KD Dance legwarmers. Morning cotton . topandDeesh’s A dam+Eve’s cottonand embroidered throw. Sethi . Sethi& spandex tankand Hanro’s cottonand embroidered throw. Sethi briefs. Sethi& spandex tankand Hanro’s cottonand Cotton tankandvoileshortsfrom Calvin KleinChoiceIntimates. and Adam+Eve cottonshorts. and Adam+Eve Eberjey’s cottonvelourshirt WWD, MONDAY, DECEMBER13,2004 WWW.WWD.COM 7

PHOTOS BY KYLE ERICKSEN; MODEL: NERRY LYNCH/TRUMP; HAIR BY YUSEF/WARREN TRICOMI MANAGEMENT; MAKEUP BY BRYAN ZARAJOZA/MANAGEMENT NYC; FASHION ASSISTANT: HOLLY CLARKE; STYLED BY BOBBI QUEEN 8 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM Accessories Report

By Alessandra Ilari MILAN — Giorgio Armani has struck a gold vein, literally: The designer is launching a fine jewelry collection that will be presented in Paris during his debut cou- ture collection on Jan. 24. Armani Gioielli Privè is part of a larger strategy for which Armani wants to extend the Armani Privè project, which already includes a quartet of fragrances bottled in dark African wood, a chichi nightclub, the couture collection and now the jewels. For trademark purposes, the designer’s made-to-order pieces are now called Armani Privè, not Giorgio Armani Atelier as previously labeled. “The Privè project is Armani’s personal aspiration, and it is aimed at developing the brand’s luxury tip of the pyramid,” said a company spokesman. The 40-piece jewelry collection will initially be available in the designer’s 59 signature boutiques around the world. The price list is still being ham- mered out. WWD previewed the jewels last week when they were on display at the designer’s Milan store for a restricted group of clients invited to sample the new fragrance. Armani’s penchant for pure volumes and quiet luxury has trickled down to the jewelry collection, which spotlights burnished gold and black diamonds. A sinuous rigid ends with a cush- ion-cut white topaz drop sprinkled with black diamonds; a multistrand choker of pink South Seas pearl is adorned with a macro drop jade pendant and showered with black diamonds, and wire bear gray pearls and jade. mani’s Latest Gem mani’s

Looks from Giorgio Armani’s fine jewelry collection, which will bow next month. Ar PHOTOS BY DAVIDE MAESTRI DAVIDE PHOTOS BY

Some of De Grisogono’s jewelryjewelry andand watcheswatches onon De Grisogono Opens First U.S. Store display at the Madison Avenue boutique. By Marc Karimzadeh NEW YORK — Despite De Grisogono’s 10 years in business and 11 stores worldwide, founder Fawaz Gruosi feels as enthusiastic as a first-timer about opening his first U.S. boutique this week in Manhattan. “I was excited for my first, second and third store, and then I got used to it,” Gruosi admitted, “but for me, New York is like the first store 10 years ago. I love this city.” The Geneva jeweler treated itself to a 3,000-square-foot boutique, which is scheduled to open its doors at 824 Madison Avenue today. Much like De Grisogono’s other freestanding stores in locales such as Geneva, Paris, Kuwait, Hong Kong and Moscow, the store was designed to be a welcoming and comfortable environment. Interior features include pale yellow walls, black and gold fixtures, antique furniture and paintings on the wall. “The decoration is very Florentine, it’s very cozy,” said Gruosi, who grew up in Florence and trained there with a local jeweler before going to work for Harry I don’t want 100 shops. I want to have 20 so that we “can keep calling the company exclusive. ” — Fawaz Gruosi Winston and Bulgari. He added that he prefers a warmer environment to some of the starker spaces that designers tend to use on Madison Avenue. It’s a suitable setting, so to speak, for the dazzling pieces. Gruosi is best known for using black diamonds and icy white diamonds and has them tightly set with dazzling effect. He also likes to mix black diamonds with coral or turquoise, and often combines them with colored shagreen for earrings, and cuff bracelets. At the store, the jewelry retails from around $2,400 for 18-karat yellow gold Allegra rings, to pieces going for millions depending on the cut and clarity of the stones. On average, though, the range is between $30,000 and $200,000. In 2002, De Grisogono sold a 49 percent stake to Chopard to help the company’s growth (Gruosi is married to Caroline Scheufele, whose family owns Chopard). Since then, it has restructured its organization and focused on building a global wholesale network. In the U.S., the collection is available at stores such as PHOTO BY DAVID TURNER DAVID PHOTO BY Bergdorf Goodman, Neiman Marcus, London Jewelers and West Time. TURNER DAVID PHOTO BY Gruosi would not disclose sales projections for the New York boutique, but said that U.S. sales have increased by 400 percent in the past year. He expects De Grisogono to have a turnover of about $61 million, or 70 million Swiss francs, in 2004. As for future growth, Gruosi said: “I don’t want 100 shops. I want to have 20 so that we can keep calling the company exclusive. “If we are successful in New York, the next store will be Miami,” he said, adding with a laugh, “so I have an excuse to go and get a suntan.” Eliot Danori® The New Look of Real

NADRI JEWELRY GROUP 45 WEST 36TH STREET 12TH FLOOR NEW YORK 10018 (212) 683-2972 THE COLLECTION: $25 TO $110 (SUGGESTED RETAIL) 10 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM Accessories If Not the Baubles, Go for the Books There’s nothing quite like getting expensive gems for the holidays, but for those who can’t get their hands on the real thing, the photos, stories and insights in these new jewelry books can offer a similar buzz. By Marc Karimzadeh and Emily Holt

“With This Ring — The Ultimate Guide to Grace Kelly A watercolor of Wedding Jewelry” (Bulfinch Press) Shinde jewels. Authors: Penny Proddow and Marion Fasel Between the Lines: Proddow and Fasel, who also cover the fine jewelry and watch beat for In Style, examine the history of engagement and wedding rings from Jewish wedding to diamond engagement rings and Tiffany settings. The duo also chronicle bridal jewels worn by everyone from the Duchess of Windsor to Gwen Stefani and David and Victoria Beckham — with informative tidbits that are lively and easy to read. “We wanted to make it fun and ease the stress level,” Fasel said. Proddow added, “It’s informative and demystifies some of the perils of understanding and buying diamonds.” After all, even princes get it wrong: The book tells the story of Prince Rainier III of Monaco, who proposed to Grace Kelly with a Cartier ruby and diamond eternity band. When visiting her in Los Angeles shortly thereafter, he realized the fashion there was huge diamond rings. To avoid potential cattiness, he immediately cabled Cartier in Paris and replaced the ring with a 12-carat emerald-cut diamond. Shining Moment: A ring glossary in the back of the book explaining everything from bezel to prong setting and V-Tip. Wish List: Every man planning to propose in the New Year and every woman hoping to accept. Price and Availability: $24.95 at Amazon.com.

“Shinde Jewels” (Assouline) “Greetings from Andy Author: Reema Keswani Andy Warhol’s (Warhol): Christmas at Between the Lines: Considered Merry Christmas Tiffany’s” (Abrams) one of the most influential , 1957. Author: John Loring jewelry designers of the last Between the Lines: Before he century, Ambaji immortalized a Campbell’s Venkateshwara Shinde soup can, Warhol dabbled in created dazzling gems for the window design and won Maharajas of India before awards drawing starting work for Harry ads. He also spent seven Winston in the Sixties, where he stayed until his years illustrating Christmas cards for Tiffany & Co., retirement in 2000. 55 of which are featured in this new book. Known for his unique eye and almost painterly Tiffany design director Loring paired Warhol’s understanding of color compositions, Shinde’s magical pictures with his non sequiturs pulled from jewels are considered works of art, often “The Andy Warhol Diaries.” incorporating the rich textures of India into the The iconic artist was introduced to the fine designs. At Winston, he created spectacular jewelry house by Gene Moore, a visual display guru jewels for the likes of Imelda Marcos, Sharon who dressed Tiffany’s windows at the time. Warhol’s Stone and Madonna. He also designed Gwyneth first holiday illustration, “Butterfly Tree,” appeared Paltrow’s fringed diamond choker worn the night in Tiffany’s catalogue in 1956. Images of shoes she won the Oscar for “Shakespeare in Love.” filled with holly and ornaments, stars made of fruit The book chronicles Shinde’s career with and birds, and a merry band of cherubs followed. sketches of opulent jewelry designs and photos of Pearl of Wisdom: “He didn’t give her the pillows she the original pieces. wanted for Christmas, he just gave her a TV for the Shining Moment: The page showing Shinde’s artful bathroom. And no jewelry.” The Andy Warhol watercolor painting of his favorite designs streaming Diaries, Dec. 25, 1980. out of Harry Winston’s Fifth Avenue salon. Wish List: Warhol aficionados and those looking for Wish List: Jewelry historians and gold fanatics. an affordable way to fill that little blue box. Price and Availability: $18.95 at Rizzoli in Price and Availability: $25 at Barnes & Noble. New York.

lection by Olivet International Inc. The pieces will be available in the fall and carried at specialty retailers that already carry Nine Luggage Takes Off West brand footwear, accessories and apparel, luggage specialty stores and luggage departments of department stores. NEW YORK — The travel industry seems to finally be get- French brand Lancel has relaunched its accessories collection ting back on its feet after Sept. 11, 2001, with an estimated in the U.S. Pierre Keyser, president of PKO, Inc. which has a 10- 37.2 million people having traveled this past Thanksgiving year distribution agreement with Lancel for wholesale and retail holiday alone, according to AAA. All those passengers in North America, is confident the will be well-received mean a whole lot of baggage in the trunk and on the plane, by customers but he’s more interested in opportunities in the lug- and as such, luggage makers are reporting improvement in gage market based on the growth in travel. Lancel’s collection of the category. suitcases and carry-ons will only be available in the company’s “In the last 14 months we’ve seen a slight growth,” said boutiques, the first of which is scheduled to open in Beverly Hills Ken Hinman, vice president of sales and marketing for in March. Hartmann one of many brands expanding their offerings Carry-on bags have garnered a lot of attention as travelers try to for spring. “But the last five months have been tremendous. avoid checking baggage due to long lines and security concerns. We’re getting back to pre-9/11 numbers.” Tumi, known primarily for its business traveler-oriented gear, has For the fourth quarter of 2004, Hartmann introduced a launched a new signature style for women. Roller bags come in limited-edition customized collection of travel gear. Using standard 22-inch and smaller 20-inch styles. The four citrus color the firm’s Web site, customers can personalize their lug- combinations offer a stylish alternative to the basic black gage with a choice of two patterns and six styles. The first version for women who travel for work. But the firm is also hoping

PHOTO BY JOHN AQUINO PHOTO BY round is offered in zebra- or cheetah-print calf hair, and to attract leisure travelers looking for a high-function, high-fashion new designs will be offered seasonally throughout the year. piece. The signature collection offers interior options such as Two brands are reentering the market after a challeng- detachable jewelry pouches, a toiletry case and garment bag, as ing few years. Nine West, a division of Jones Apparel Inc., is well as an indispensable temperature and size conversion card. Tumi relaunching its luggage and travel accessories with a licensed col- — Emily Holt INTRODUCING The Five Star Signature Collection featuring the finest leather gloves and knit accessories

January 10, 2005 by appointment please

Portolano Products 15 West 37th Street New York NY 10018 212.719.4403 12 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM Malden Workers Race for WTO Director Heats Up OK New Contract By John Zarocostas ambassador, Luiz Felipe de Seixas Correa, agree on its new chief. NEW YORK — Averting a threat- to head the 148-country organization. The WTO traditionally has chosen its ened strike, the manufacturing GENEVA — The race to appoint a new direc- Jayen Cuttaree, foreign affairs and leader by consensus. However, if talks fail employees of Malden Mills tor-general to head the World Trade trade minister of Mauritius, and Carlos to result in a new director, the group’s by- Industries approved a three- Organization intensified Friday with France Perez del Castillo, former Uruguayan am- laws allow for an election, with the posi- year contract for a total 7 per- formally nominating former European bassador to the WTO and former chairman tion going to the candidate chosen by the cent raise. Union Trade Commissioner Pascal Lamy. of its ruling general council, are also seek- majority. The pact, which covers about Lamy, 57, would succeed Supachai ing the job. With the Doha talks back on track, sen- 450 workers at the Lawrence, Panitchpakdi, whose term expires on Aug. 31. Cuttaree was instrumental this year in ior WTO trade diplomats hope they can Mass.-based firm, increases em- In July, Lamy, who has a close working the push by poor textile exporting coun- avoid a repeat of bitterly fought contests ployees’ contributions to their relationship with U.S. Trade Representa- tries to get the WTO to focus on the likely that divided the membership. health insurance premiums. tive Robert Zoellick, played a prominent dire post-quota implications. In 1999, differences over the U.S.-backed The higher insurance cost had role in putting together a package to jump- A senior East African diplomat said candidate, former New Zealand Prime been a sore spot with the work- start the stalled Doha round of trade talks. Kenyan Trade Minister Mukhisa Kituyi Minister Mike Moore, and former Thai ers, who are members of the His five-year term as EU trade commis- will soon join the contest. Deputy Prime Minister Supachai, who was UNITE HERE union, and had sioner ended last month. WTO member nations have until Dec. 31 backed by Japan and other Asian countries, prompted them to reject earlier He joins a growing field of candidates. to nominate a national for the world’s led to friction that eventually contributed to offers and threaten a strike. Also on Friday, Brazil put forward its WTO trade post. The group then has until May to the dramatic collapse of the Seattle summit. Voting on the new contract closed Thursday night. “Our company has a long tra- dition of corporate responsibili- ty to our employees,’’ Malden chief executive officer Michael Spillane said in a statement. “This contract maintains that tradition by respecting the needs of our workers while

2004 Dallas Market Center keeping us competitive in an in- © creasingly global economy.’’ Union officials did not return calls for comment Friday. Nine years ago, Malden’s pri- mary manufacturing facilities burned down and the company won accolades for keeping its employees on the payroll while it rebuilt. Although that provid- ed a bonanza of goodwill, it also set the stage for the polyester fleece maker’s 2001 bankruptcy filing, from which it emerged in October 2003. — Scott Malone Forever 21 Drops Rabbit-Fur Items After PETA Flap NEW YORK — Forever 21 has agreed to remove all fur prod- ucts from its stores by Dec. 31, after being pressured by the People for the Ethical Treatment of Animals, which staged “stop butchering bunnies” protests at some 20 of the retailer’s stores until about a week ago. “We are taking action to re- move any authentic animal fur from our garment selection by the end of December. There will be no fur in our stores after Dec. 31, 2004,” Lawrence Meyer, sen- ior vice president of Forever 21 Inc., wrote in a letter to PETA. Kristi Dunn, a spokeswoman for Forever 21, said Friday that rabbit fur was not a large part of the store’s assortment. “There’s such great faux fur available now, so you don’t need to sell real fur to get a great look,” Dunn said. PETA claimed that last winter, Forever 21, which sells trendy fashion for young customers, C & BE SEEN promised to drop rabbit fur, but fur and fur-trim garments subse- Dallas Market Center’s new apparel venue, FashionCenterDallas®, is where the latest come into focus. quently appeared in the stores this year, triggering the antichain Come take a second look at Spring and get a sneak peek at Summer during January Market. reaction. PETA said it’s next tar- 214.655.6100 or 800.325.6587 dallasmarketcenter.com get could be Wet Seal. PETA president Ingrid E. Women’s & Children’s Apparel & Accessories • January 20 – 23, 2005 Newkirk said in a statement Friday, “With its fur-free pledge, Forever 21 has saved countless animals and sent a message of compassion throughout the retail community and beyond.” — David Moin PHOTO BY PATRICK KATZMAN; MODEL: JENNY H./FORD, KAROLINA B./NEXT; HAIR BY TOMOKO/CALLISTE; MAKEUP BY ANGELIK IFFENECKER; STYLED BY LAURENT FOLCHER WW Pages 13-21Pages Into the Light the Into Into the Light the Into flirtiness oftheseason’s lingerie.Delicatelacesgetdoneup in sweetlayers,likeSabrinaNadal’spolyamideandnylon P RS—There’ssomethingintheair—froth and ARIS — lace ,shortsandcamisole,shownhere. DParis Lingerie Preview DParis Lingerie Paris Lingerie Preview Paris Lingerie 14 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM

PARIS LINGERIE PREVIEW

▲ Circus- inspired SIL’s Multifaceted Fair looks. PARIS — Neither the high value of the euro against the dollar nor weak consumer spending in Europe has dampened the optimism of the Salon International de la Lingerie, the lingerie trade show set to run at the Porte de Versailles exhibit halls here Jan. 28-31. The show is banking on its creative approach, its nose for trends and its wide selection of brands to attract business. Some 550 exhibitors from about 30 countries are expected at SIL. More than 23,000 buyers visited the show last year. “The show is becoming more multifaceted,” said Chantal Malingrey, SIL’s manager. “We want it to reflect the changes that are challenging and shaping the market.” For instance, Malingrey said SIL will feature a wider variety of prices and segments. She said men’s underwear, a rapidly growing category for many retailers, will get larger play, as will less expensive, trendy lingerie geared to teens. Perla Uomo, for example, will launch men’s underwear at the show, while a raft of new teen brands are joining the fair, including Mexx, Banana Moon and Chipie. About 30 young designers will be featured in a section Malingrey said would be called “Starting Block.” “Price is becoming more of an issue in lingerie,” continued Malingrey. “We need to have a wide variety of styles and prices at the show, because retailers need to have that variety in their stores.” The show likewise is bulking up its offering of high-end, designer lingerie with the arrival of brands including Sonia Rykiel, Versace and John Richmond, all of which will launch their wares at SIL. A collection of Laura Biagiotti Bodywear that was previewed at the Lyon, Mode City fair in Lyon, France, in September, will also make an appearance at SIL. The fair also hopes to further spotlight its creativity aspects with a collaboration this season with Swarovski. The crystal manufacturer has given its stones to a dozen or so fashion and lingerie designers, including Vivienne Westwood, Roberto Cavalli, Christian

Lacroix , La Perla and , and asked them ▲ A Bohemian theme. to create prototype lingerie. The one-of-a-kind pieces will be presented at SIL’s “Ultra Lingerie” catwalk show on the evening of Jan. 29. “The sky’s the limit,” said Lila Thibault, manager of Swarovski in France, regarding the collaborative effort. “The idea was to illustrate the weakening boundaries between fashion and lingerie and that lingerie can have a modern, fashion connotation. Women like to show off their lingerie today.” “It’s SIL’s way of trying to push the limits of what lingerie can be,” added Malingrey. Meanwhile, SIL will offer twice-daily runway shows illustrating the latest trends, and a daily catwalk show devoted to Italian firms, which make up the second most important contingent after France at the fair. Malingrey said quality was high on SIL’s agenda, noting that the show had developed a so-called “ethical charter” to check the quality level of its exhibitors. The goal of this is to assure visitors that each brand featured at the fair can fill its promised orders, produce to high standards, and deliver its products in a timely manner, said Malingrey. Also on the creative front, SIL has asked several artists to create lingerie- inspired works that will be exhibited in a special space during the show. Meanwhile, trends featured in separate forums will be split into four themes: luxury, glamour, cocooning and young fashion. Malingrey said the idea behind

▲ A matte the trend exhibition was to blend creativity with functionality. SIL’s sister event, Interfiliere, a concurrent fabric, lace and and shine trims show in January, will move into the same exhibit theme. space at the Porte de Versailles, Hall 1. Helene Genter, Interfiliere show coordinator, said this was designed to create synergies between the two events. ▲ Movie “We want buyers to be able to visit both star shows easily,” said Genter. looks. This collaborative spirit between the shows has also carried over to their first shared trend book, which was sent to exhibitors earlier this fall. To facilitate buyers’ visits, the Interfiliere show will situate companies according to the types of products they manufacture. For example, all the lace manufacturers at the exhibit will be grouped in the same area. The textile fair will feature about 230 exhibitors from 25 countries in January, said Genter. She added that eight new companies are joining the fair. The level of creativity at SIL is spilling over to Interfiliere, as well. Genter said six textile designers have been asked to work on futuristic textiles that will be exhibited during the show. Trends will be illustrated with a straightforward exhibit of innovative textiles alongside a more esoteric forum that Genter said would serve as a think tank to stimulate buyers’ imaginations. “The business environment is tough,” said Malingrey. “We need to give visitors all the tools they need to make the right decisions.” — Robert Murphy

16 WWD, MONDAY, DECEMBER 13, 2004

PARIS LINGERIE PREVIEW

Roberto Cavalli’s polyamide and elastin with Swarovski crystal embroidery and bloomers.

Boudoir Bound WWD, MONDAY, DECEMBER 13, 2004 17

WWW.WWD.COM

▲ Vannina Vesperini’s silk and Lycra spandex and briefs over viscose and elastin Calais lace .

Cadolle’s cotton-lined satin polyester corset with organza ruffles. ▲ D BY LAURENT FOLCHER LAURENT D BY

▲ Eva Rachline’s quilted polyester satin and polyamide and Lycra spandex tulle bustier and briefs.

PARIS — The pomp and circumstance of 18th-century Parisian court life gives the season’s lingerie a provocative spin with corset shapes and lacy frills. PHOTOS BY PATRICK KATZMAN; MODEL: JENNY H./FORD, KAROLINA B./NEXT; HAIR BY TOMOKO/CALLISTE; MAKEUP BY ANGELIK IFFENECKER; STYLE MAKEUP BY TOMOKO/CALLISTE; HAIR BY MODEL: JENNY H./FORD, KAROLINA B./NEXT; KATZMAN; PATRICK PHOTOS BY Connection of Talents

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PARIS — In the late Sixties, when Sonia Rykiel urged women to stop wearing bras under her tight “poor boy” sweaters, she caused a minor sensation. But that was then. Now the designer thinks it’s equally scandalous to wear — and show a little — lingerie. Sonia’s That’s the thinking behind the French designer’s first complete underwear collection, produced in license with France’s Scandale. It will officially be launched in January at the Salon International de la Lingerie here. “The idea was to create lingerie that was very sophisticated, very comfortable — because that’s very important to the Rykiel customer — and make it cheeky and very Sneak sexy,” explained Nathalie Rykiel, the designer’s daughter, who oversees the line. Nathalie said the impulse to branch into lingerie struck two years ago when the house opened the Rykiel Woman store in Saint Germain here. The store had a luxury theme, carrying cashmere sweaters, velour jogging , fur coats and lingerie that were all exclusive to the location. Peek “The lingerie was almost like couture,” she said. “But we couldn’t keep up with the demand. It became a part of our universe and we wanted to go further.” The new lingerie line is being introduced in European wholesale accounts and Rykiel stores around the world starting early next year. Plans for wider distribution are being considered. Retail prices range from 145 euros, or about $190, for a micro fiber and panty set, to 240 euros, or about $315, for a lace bodysuit. Conversions are at current exchange rates. “When mother started, it was shocking not to wear lingerie,” said Nathalie Rykiel. “It represented freedom. But today’s femininity is different. A woman can show off a little lingerie under her clothes. It’s another way for women to be free.” — Robert Murphy

Two looks from Sonia Rykiel’s new lingerie line.

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McMillion also said that increas- Friday, and it includes In the overall economy, producer ing energy prices are compounding plans for China Ting prices rose 0.5 percent for finished the problem for textile and apparel Group, a major Chinese goods, fueled by a 1.8 percent in- producers. textile producer, to roll crease in energy prices. However, the “Their costs are rising, and they out a chain of 25 Burl- core producer prices, which exclude can’t pass that along, and that indi- ington House Retail volatile food and energy costs, went cates they continue to be squeezed,” stores in the world’s most up a modest 0.2 percent in November, he said. “If they are making any populous country. It’s part according to the Labor Department’s money, this comes straight out of of a bid to capture a piece ITG is opening Producer Price Index. their profits.” of China’s fast-growing a chain of Prices for all U.S.-made apparel Bras was the only category of consumer market. Burlington House were flat in November against Octo- women’s and girls’ apparel cut and The deal also calls for stores in China. ber and were down 0.2 percent com- sewn in the U.S. showing any price ITG and China Ting to pared with November 2003. Men’s changes, falling 0.4 percent in build a dyeing and finishing plant in Linping, a city less than 100 miles southwest of and boys’ prices were also flat last November. All other categories were Shanghai. month. flat. That includes wholesale prices Ross said this marks the first time that Burlington, which he bought out of bankruptcy U.S.-made textile and apparel for knit shirts and , dresses, and merged with Cone Mills to create ITG, has had a retail presence. All retail sales in prices have been in a long-term de- coats and , and slacks, China currently exceed $500 billion a year, and the country, which has a total population of cline because of cheaper imports. sweaters, swimwear and . 1.3 billion, is estimated to have a middle class of about 100 million people. The labor department’s recent over- In another category based on ap- Ross described the deal with China Ting, which will call for a joint investment of $20 mil- haul of the PPI does not provide parel made in knitting mills, whole- lion, as “the first in a series of steps,” as his $800 million firm boosts its presence in China. year-over-year comparisons, be- sale prices for knit shirts dropped 0.1 “We’re actively working on other transactions,” including some for apparel fabrics, he said. cause many of the textile and appar- percent in November, while prices for The Burlington House stores, which will sell home textiles such as sheets and bed- el categories were reclassified. underwear, nightwear and sweaters spreads, will cater to a growing class of new city dwellers being created by aggressive “It’s the continuation of the lack remained flat. urban redevelopment programs. The shops will be relatively small in size, occupying a few thousand square feet each. The first unit already opened in Linping in the last month. All 25 are due to open before the end of next year. Ira Kalish, a China specialist at Deloitte Research, said a campaign by the Chinese gov- Prime Outlets at San Marcos ernment to shift ownership of homes from the state to its citizens is prompting a wave of consumer spending there. “Most housing stock until 10 years ago was owned by the government, and people didn’t take care of homes they didn’t own,” said Kalish, who serves as Deloitte’s global director Adds to ‘Shopper’s Paradise’ for consumer business. “A lot of middle-class households have been buying their homes. When they own their homes, they treat them differently. That has stimulated a lot of spend- By Amy S. Choi After the Alamo, the center is al- ing on home-related products.” ready one of the top tourist destina- Ross said: “When you take a guy from being sort of a squatter in a slum into a property NEW YORK — Well-heeled shoppers tions in the state and is ranked in owner, suddenly he wants a rug, he wants furniture, he wants a TV, he wants of Texas have a new and improved the top-five performing outlet cen- everything…So outside of all the Chinese cities, enormous home furnishings malls are place to spend their money: the ex- ters in the country by the Inter- springing up. So far, they carry imported, high-end stuff or extremely low-end products. panded Prime Outlets at San national Council of Shopping Cen- These stores under the Burlington name are meant to deal with this middle-class market.” Marcos. ters. And thanks to a $20 million in- In addition to upgrading the housing of existing city dwellers, China is experiencing a surge “It is a rite of passage for every vestment in San Marcos, Prime re- in urban migration, as former rural farmers head into the major cities in search of factory jobs. Texan to shop there once in their cently captured BCBG Max Azria Ross said the idea of opening a chain of stores grew out of talks with China Ting, which life,” said Bob Brvenik, president of Group’s first BCBGirls and To The Burlington for the past several years has dealt with through its Hong Kong-based Prime Retail Group, the center’s Max store in the U.S., which is piggy- Burlington Worldwide operation. That unit works as a sales agent, representing 30 Asian owner and operator. “It’s a shop- backing an existing 4,000-square- mills in the U.S. per’s paradise.” foot BCBG outlet in San Marcos. “I realize it probably seems somewhat strange, somebody that doesn’t even have stores New retailers are adding to this To The Max will grow into its own in the U.S. opening up in China,” Ross said. “There’s a unique opportunity to open the 550,000-square-foot Eden, whose un- space with the center’s 200,000- market there.” likely home is at the edge of the square-foot expansion, which should The Linping plant, which is also due to open by the end of 2005, will dye and finish fab- Texas foothills. Ferragamo USA. be completed in late 2005 and will ric primarily made by Burlington Worldwide’s existing suppliers. Inc., for example, opened its first feature Neiman Marcus as its an- Over the past year, Ross has moved to boost ITG’s presence outside the U.S. In addition outlet store in Texas at the San chor tenant. Calvin Klein Inc. and to exploring China, he has said that the company plans to build a manufacturing Marcos center last week, to one of Hugo Boss AG will also be opening plant in Guatemala City, contingent on Congressional approval of the Central American the largest opening-weekend sales. stores in late 2005. Free Trade Agreement. “The Prime Outlets location has “We stress the notion of trading ITG continues to manufacture fabrics in the U.S., and Ross said the international moves become a major destination for in- up in terms of the luxury compo- “are not instead of our domestic activity. These are incremental to it.” ternational and local shoppers nent of our tenants,” said Brvenik. He said the retail move played into his overall goal of building the recognition of the alike,” said Lynda Abdoo, senior vice “San Marcos is the first project Burlington brand name. He added that he’d consider opening other retail operations in president of retail for Ferragamo. where you can really see the fruits China if he found the right partner. It’s about to become even bigger. of our labor.”

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Factoring & Receivables Factors Shift Gears as Market Evolves By Michael Rudnick WWD: Regarding factoring fundamentals, what criteria do you consider when eval- uating a loan? NEW YORK — Companies involved in all aspects of retailing, from manufacturers and McGarry: When evaluating a prospect or client’s loan request, we apply a consis- importers to distributors and retailers, are changing their strategies as a way to tent methodology. We underwrite the character and integrity of the shareholders or weather the turbulence of a global market. This includes the factoring industry too, management team. We look at their previous success, as well as their challenges, and which has seen significant consolidation over the past decade. evaluate their skills to lead their company through various economic cycles. During a recent roundtable discussion, factors discussed the impact of this issue Simultaneously, with our management review we underwrite the historic and pro- and others, such as how they evaluate a client’s request for loans and what they study forma cash flow of the business to gauge the prospect’s ability to achieve their pro- to gauge the health of retail. jected results. We relate our analysis to the business model of the prospect and look The participants included: Kevin McGarry, executive vice president, northeast re- to validate the business model. Finally, we audit and underwrite the collateral that gional manager, GMAC Commercial Finance; Michael Stanley, executive vice presi- supports our loan. We test the collateral to determine its realizable value in order to dent at Rosenthal & Rosenthal; John Daly, president of CIT Commercial Services; establish advance rates that are appropriate. Depending on industry or the financing Tom Pizzo, president and chief executive officer at Wells Fargo Century; David need, we may employ third parties to assist in underwriting the collateral values. Milberg, president of Milberg Factors, and Chris Rogers, group vice president and do- This helps to validate our findings and meet the prospect’s financing needs comfort- mestic receivables manager at Suntrust Bank. ably. Given the changing retail landscape, we must be prepared to fund deeper into the balance sheet and accept more leverage. The only way to do this consistently and deliver on our commitments is to have a process that supports the risk Imagine a financing proposal filled with profile while also meeting the practical business solutions hand picked just needs of the marketplace. Stanley: When evaluating a for you. At GE Commercial Finance’s Retail loan, we make sure that the Finance group, that’s exactly what you’ll get. prospect’s management is capa- ble of operating the business profitably. If they are not cur- No matter your goal, we’ve got all the goods rently profitable, we want to en- in stock to help you grow your business: sure that the prospect has a plan in place to get to cash flow cash flow and asset-based loans, term and profitability. Collateral is very second lien loans, acquisition capital, important to us, because collat- recapitalizations...and more. We’ve put our eral value is essentially what we are lending against. tailored financing solutions to work for Daly: We ask ourselves the hundreds of companies from department critical questions: What are the company’s goals? Do they have stores and sporting goods outlets to jewelry the adequate capital to achieve and specialty apparel stores. their goals? Do they have the right team to execute on their strategy to achieve those goals? Attention Retailers: Combine this with 100+ years’ of consumer Does the company’s owner or product experience and first-hand retail management have the experi- operations know-how and you can be sure ence to achieve those goals? We’ve got your WWD: What are some barom- we’ve got your future in store. eters you look at in assessing future in store the retail business? Pizzo: The price of oil and interest rates can affect retail GE Commercial Finance sales. However, energy prices today consume less of the total Retail Finance budgets of consumers and busi- nesses than in the past, leaving more disposable income. Also, interest rate increases will be gradual if needed to slow a growing economy. Our business environment looks good for the coming year. Milberg: Retail sales, person- al incomes, the cost of energy — these are all statistics to look at. Rogers: Major barometers for business include housing starts and consumer confidence reports. WWD: What are the primary retail sectors that are fueling your businesses, and what are some new areas of expansion? Milberg: Our factoring clients cover a range of industries. Our growth is coming both from more traditional industries for factors such as apparel, fiber, textiles and home furnishings, as well as newer industries for factors, including toys, con- sumer electronics, tools and personal sundries. McGarry: As has been the case for some time, our business is fu- eled by apparel, textiles and fur- niture. We are, however, seeing more opportunities in a broad range of consumer goods that are distributed through the retail channels. We are also looking at Jim Hogan · Norwalk, CT · 203-956-4592 Stuart Armstrong · Managing Director Daniel Williams · New York, NY · 212-309-8779 more opportunities to finance the Lori Potter · Charlotte, NC · 704-992-5444 Norwalk, CT · 203-956-4085 Kimberly Morse · Pleasanton, CA · 925-730-6464 supply chain from the raw mate- Stephen Metivier · Norwalk, CT · 203-956-4596 Matt Christensen · San Francisco, CA · 925-730-6425 rials through to the consumer. Pamela Rashid · Chicago, IL · 312-441-7763 © 2004 GE Corporate Financial Services, Inc. All rights reserved. Rogers: Our business is fu- eled by import factoring, pre- dominately the import of apparel WWD, MONDAY, DECEMBER 13, 2004 25 WWW.WWD.COM into the U.S. sold and produced by foreign companies that do not have U.S. subsidiary companies. Daly: Apparel is still the mainstay of our business. In 2005, we will focus on home fur- nishings very heavily. There is a fair amount of opportunity in that area, as more goods are coming in from overseas and new entrants are stepping in. Home sales are driving the need for home furnishings. One of the new areas we are moving into is international- ly supported consumer electronics, or the low tech business. Consumer electronics is a AP PHOTO/GREG BAKER good fit, as it moves through the retail channels of distribution that we service. WWD: How is the increase in manufacturing and sourcing overseas affecting your business? Also, how will the lifting of quotas affect your business? McGarry: I believe we will see increased business from imports, with a significant increase of production coming from India and China. I believe manufacturers and im- porters will go narrow and deep with global suppliers as they become unrestricted in their ability to ship product to the U.S. This will cause severe competition overseas as factories compete for the business. I believe it will be survival of the fittest overseas, and this will create temporary retail price benefits for the consumer. The obvious off- set to this scenario is government intervention, either domestically or abroad. The end result will be increased demand on financing of the supply chain, and the institu- tion that has the end-to-end solution will win big. Factors are growing their Rogers: As one of the largest international factors globally, our import portfolio global client list, especially plays a critical role in our growth strategy. Lifting the quota provides us with further inin China.China. Here,Here, consumersconsumers opportunities to expand existing import relationships, acquire new import clients at a Sam’s Club in Beijing. and support the growing number of factor partners that we have globally. On the do- mestic side, we believe the mar- ket has already adjusted. Stanley: There will be a surge of imports, predominantly from China and the Pacific Rim, but the market has been moving to this over the past couple of years. In the short term, vendors Wells Fargo Retail Finance or importers will have a lot of profit enhancement because of Financing Solutions for Retail Businesses the leveling of quotas. WWD: The industry has expe- rienced major consolidation, with bank-owned factors becoming a disappearing breed. What are the advantages and disadvantages to being owned by a bank versus being an independent firm? Pizzo: The main issues that are favorable are the cross-sell- ing of different bank products to our clients, such as real estate fi- nancing and access to global con- nections. The size and capital re- sources of our parent is a major advantage in doing business. Rogers: The advantages of being bank-owned are the low cost of funds and the large vari- ety of bank products and servic- es we can offer our clients to complement factoring. Milberg: There are numerous advantages to using a large inde- pendent factor over a bank-owned factor or any large institutional factor. It all boils down to service: Many midsize independents can offer all the services of the other firms, but in a more personal, Wells Fargo Retail Finance provides revolving lines more entrepreneurial way. WWD: What’s your take on of credit, term loans and seasonal facilities tailored for the holiday shopping season and consumer spending? retail businesses. Calling on proven industry experience Daly: The cost of local trans- and dedicated, personal attention, we are committed to portation and home heating can pull dollars away from consumer providing a financing solution that works for you. discretionary spending. I am al- ways interested in looking at the employment level for the head of household. If jobs are flat or going up and interest rates stay fairly Talk to a lender with retail experience. steady, spending should be solid. We do, however, have to take into Call or visit us online today! account ebbing housing sales. Rogers: Holiday shipments are strong, but we have seen a real change toward the conser- vative up-front purchasing habits of the retailers over the Wells Fargo Retail Finance last few years, putting more of One Boston Place, Suite 1800 • Boston, MA 02108 the burden of carrying the re- order inventory on the manufac- (888) 964-9600 • wfretail.com turer. That way, the retailer is not hurt if the sell-through does not materialize. We have also seen shipments ordered to ar- rive early because of the con- cern over delays in the ports in Southern California. Stanley: Based on what we are hearing from clients, we are guardedly optimistic. Inventory levels are right and lean [reduc- ing clearance and making room for new holiday merchandise]. © 2004 Wells Fargo Retail Finance. All rights reserved. Developing RELATIONSHIPS. Providing SOLUTIONS.® Interest rates are reasonably low — which should drive spending. 26 WWD, MONDAY, DECEMBER 13, 2004

Factoring & Receivables Weekly Stock Index 52-WEEK VOLUME AMT HIGH LOW P/E (00’S) LAST CHANGE WWDCOMPOSITE STOCK INDEX VS. S&P 500 RETAILERS 47.35 23.07Abercrombie Abercrombie & &Fitch Fitch 21.2 87140 44.99 -0.09 34.38 16.83Aeropostale Aeropostale 21.3 51811 29.40 0.00 44.59 14.80American American Eagle Eagle 21.6 56220 44.17 0.95 31.43 19.98Ann Ann Taylor Taylor 13.4 85211 20.80 0.35 41.50 15.22Bebe Bebe 39.3 21968 39.10 1.24 4.95 1.40Bluefly Bluefly - 8565 2.23 -0.11 17.95 9.62Bon-Ton Bon-Ton 13.8 3084 15.24 0.14 24.29 17.42Burlington Burlington Coat 15.1 2889 23.18 -0.44 S&P 500 23.63 11.31Cache Cache 19.4 5074 17.00 0.42 28.97 18.68Cato Cato 18.1 4995 28.80 0.30 22.24 8.84Charlotte Charlotte Russe Russe 14.3 75036 10.08 -0.74 9.59 5.09Charming Charming Shoppes Shoppes 14.5 29037 8.93 -0.33 47.60 30.51Chico’s Chico's FAS FAS 29.2 46145 44.13 0.73 33.90 16.77Children’s Children's Place Place 24.6 15546 31.55 -0.90 47.34 32.95CVS CVS 19.7 93899 45.14 -0.62 WWD COMPOSITE STOCK INDEX 27.01 19.00Deb Deb Shops Shops 20.8 451 24.42 -0.58 26.86 14.58Dillard’s Dillard's 35.8 52785 25.83 -0.37 23.19 16.91Dollar Dollar General General 21.8 76324 20.63 0.34 19.45 14.36Dress Dress Barn Barn 15.9 46163 16.43 -0.44 117.33 55.09eBay eBay 106.6 399441 114.41 -2.00 39.66 25.09Family Family Dollar Dollar 18.8 77713 29.02 0.01 58.16 42.54Federated Federated 14.4 64467 55.78 0.69 27.59 19.97Foot Foot Locker Locker 16.5 40647 26.49 -0.56 25.72 18.12Gap Gap 16.6 271430 20.45 -1.03 14.80 7.35Goody’s Goody's 19.5 3309 9.03 0.00 9/3 9/17 10/1 10/15 10/29 11/12 11/26 12/10 9.15 3.14Gottschalks Gottschalks 18.6 1725 7.82 -0.68 19.58 11.14Guess Guess 20.0 18594 12.15 -0.83 4.10 1.15Harold’s Harold's Stores Stores - 227 1.43 0.28 32.30 13.85Hot Hot Topic Topic 17.1 52452 16.01 0.05 41.50 22.29J.C. J.C. Penney Penney 19.4 112622 39.40 0.66 119.69 22.41Kmart Kmart - 84924 103.48 -0.48 54.10 39.59Kohl’s Kohl's 24.4 108175 46.67 -0.98 WWDSTOCK INDEX SLIPS 27.89 16.68Limited Limited Brands Brands 16.6 140541 23.36 -0.72 36.48 23.04May May Dept. Dept. Stores Stores 14.0 90484 28.68 0.22 NEW YORK — A week of mixed economic news, which mostly centered on the value of the U.S. dollar, as well as ris- 28.07 12.21Mothers Mothers Work Work 11.5 3533 12.79 -0.14 70.28 47.48Neiman Neiman Marcus Marcus 15.2 7038 66.82 -0.75 ing and falling crude oil prices, pushed the WWD Composite Stock Index down 1.1 percent to 1150.02 on Friday 46.68 31.58Nordstrom Nordstrom 17.6 82544 45.00 1.52 from 1163.01 last week. 25.78 17.25Pacific Pacific Sunwear Sunwear 17.0 72365 22.01 -0.14 The S&P 500 finished the week down 0.3 percent to 1188 from 1191.17. 46.81 38.17Regis Regis 18.9 9438 45.20 -0.20 Over the past month, the WWD Composite Stock Index has struggled as investors continue to fret over consumer 9.70 4.10Retail Retail Ventures Ventures 23.3 8751 6.99 -0.09 32.86 20.95Ross Ross Stores Stores 21.1 31807 27.12 0.07 spending. But there may be some good news on the way. 17.92 11.61Saks Saks 40.7 59997 14.45 -0.04 Deloitte Research’s Leading Index of Consumer Spending showed an increase in the November reading, as falling 55.90 31.21Sears Sears 5.5 188929 52.02 -0.28 oil costs and rising real wages are expected to have a positive impact on business. 20.49 12.14ShopKo 13.1 11522 17.28 -0.52 42.01 26.14Stage Stage Stores Stores 13.9 7745 40.08 -0.63 “Declining real wages have weakened consumer spending throughout much of 2004, but falling oil prices are 19.18 7.60Stein Mart 23.6 13632 16.93 0.70 expected to increase real wages and consumer purchasing power in the new year,” the research report stated. 14.01 6.79Syms Syms - 804 12.99 -0.48 “Discount retailers have not performed as well as anticipated throughout this holiday season because of low real 39.82 24.11Tal Talbotsbots 15.2 16048 27.73 -0.45 wages, but they should see a turnaround in the coming months as falling oil prices lead to lower prices at the 54.14 36.19Tar Targetget 23.4 137843 51.70 0.00 26.82 20.64TJX TJX Cos. 17.2 111332 25.01 0.72 pump, putting more cash into consumers’ pockets,” said Carl Steidtmann, Deloitte’s chief economist. “Strong in- 4.20 1.77Urban United Outfitters Retail Group - 875 3.99 -0.06 come growth will continue to drive robust retail sales for luxury retailers this holiday shopping season.” 48.47 16.29Wa Urbanlgreens Outfitters 42.0 74637 42.88 0.98 Speaking of luxury, the fight against counterfeits takes a turn this week. Partnering with the International 61.31 50.50Wal-Mart Wal-Mart 22.9 491951 52.71 -0.22 11.13 0.69Wet Wet Seal Seal - 62679 1.60 -0.01 AntiCounterfeiting Coalition, Harper’s Bazaar magazine is set to launch a telephone tip hot line on Dec. 15 to encour- 6.75 1.95Wilsons Wilsons Leather Leather - 10975 4.23 -0.26 age consumers to report suspected fraudulent goods. 31.30 24.59Zale Zale 15.7 14551 30.74 0.43 Consumers can call 1-866-NOTFAKE and leave a message regarding what they believe may be counterfeit VENDORS items. They can choose whether to leave contact information. Bazaar staff will listen to messages each day and fol- 52.30 39.51Alberto Alberto Culver Culver 21.9 14210 47.42 0.15 46.65 30.67A Avonvon 12.6 279741 39.53 -0.05 low up, if deemed necessary, by notifying police investigators in the U.S. or Europe. 25.10 20.60Benetton Benetton 32.1 577 24.30 -0.68 “The public doesn’t know what’s wrong about buying counterfeit goods,” said Bazaar spokesman Jason Lundy. 33.06 19.50Cherokee Cherokee 17.5 1474 32.34 1.88 “If we get one great bust out of it, it’s worth it.” 54.00 32.50Coach Coach 34.3 54597 53.62 1.16 62.18 49.22Columbia Columbia Sprtswr Sprtswr 17.8 7843 58.38 -0.32 The idea for the tip line was spawned about nine months ago in part by Bazaar publisher Valerie Salembier, who 34.75 24.20Del Del Labs Labs 19.3 2577 34.54 0.07 is an advocate of anticounterfeiting measures and is “very close with the [New York] police,” Lundy said. 25.16 17.59Elizabeth Elizabeth Arden Arden - 16726 22.67 -0.14 A related summit hosted by Bazaar and the IACC will take place here on Feb. 1 at the Mandarin Oriental Hotel, 49.34 36.59Estée Est?e Lauder Lauder 26.2 40935 45.97 0.86 32.37 17.19Fossil Fossil 15.0 26257 25.00 -1.22 with a keynote address by New York City Police Commissioner Ray Kelly, said Lundy. About 100 chief executive of- 10.89 5.69G-III G-III 311.0 1217 6.30 0.05 ficers and general counsels, mainly from luxury goods retailers, are expected to attend. 41.60 32.77IFF IFF 19.2 22831 41.39 0.24 — Meredith Derby and 33.36 11.32Inter Inter Parfums Parfums 18.1 4829 15.37 -0.94 40.00 31.99Jones Jones Apparel Apparel 14.4 29364 36.02 0.44 Arthur Zaczkiewicz 45.10 31.32Kellwood Kellwood 12.3 15220 34.22 -1.09 37.39 24.66Kenneth Kenneth Cole Cole 15.3 11195 28.24 -2.51 42.35 32.09Liz Liz Claiborne Claiborne 14.6 25308 40.58 -0.94 5.00 2.67Mossimo Mossimo 21.7 386 3.63 -0.11 19.40 12.79Movado Movado 15.5 4586 17.32 -0.59 WWDStock Market Index 88.40 63.22Nike Nike 22.8 46214 87.00 0.28 Weekly % Changes Ending Dec. 10 2.65 0.46Novel Novel Denim Denim - 234 0.96 -0.02 47.50 30.00Oxford Oxford 16.1 5455 38.00 -2.90 29.95 18.20Perry Perry Ellis Ellis 7.4 4719 18.66 -0.82 Composite: Retailers: Vendors: Largest Gainers Largest Losers 29.95 16.45Phillips-Van Phillips-Van Heusen Heusen - 10941 25.77 -1.64 1150.02 1118.98 1317.94 40.94 27.28Polo Polo Ralph Ralph Lauren Lauren 18.8 20731 39.36 -1.26 31.15 14.70Quiksilver Quiksilver 22.6 16747 29.50 -1.10 Close Change Close Change 42.95 31.25Reebok Reebok 13.5 32330 40.81 0.98 Harold’s Stores 1.43 24.35 Tropical Sprtswr 1.31 -9.66 3.93 1.96Revlon Revlon - 28737 2.18 -0.01 19.73 15.60Russell Russell 11.7 4849 18.72 -0.34 Cherokee 32.34 6.17 Kenneth Cole 28.24 -8.16 4.13 0.71Tarr Tarrantant - 15284 1.99 0.04 -12.99 -14.57 -1.38 Stein Mart 16.93 4.31 Gottschalks 7.82 -8.00 18.25 8.47To Tommymmy Hilfiger Hilfiger 8.6 35705 10.60 0.36 4.88 0.88Tr Tropicalopical Sprtswr Sprtswr - 3491 1.31 -0.14 Tommy Hilfiger 10.60 3.52 Oxford 38.00 -7.09 5.79 0.65Tr Trueue Religion Religion Apparel Apparel 54.0 9942 5.15 0.10 Index base of 1000 is keyed to closing prices Nordstrom 45.00 3.50 Charlotte Russe 10.08 -6.84 55.29 40.30VF VF Corp. Corp. 12.9 34127 53.45 -0.71 of Dec. 31, 2002. 22.76 14.69Wa Warnacornaco - 13953 20.42 -0.28 WWD, MONDAY, DECEMBER 13, 2004 27 WWW.WWD.COM Apparel Spending Outpaced by Home Goods

By Meredith Derby income consumers. Growth Partners, called the suc- Another reason for the cessful launch of the Nintendo NEW YORK — After a strong decrease in spending on apparel DS game platform one of the Consumer Spending on Apparel Lags fashion cycle last spring that is that electronics, for example, most important retail sector (Real personal consumption expenditures in U.S. billions of dollars) propelled sales, consumers have has seen much more innovation events since the Nineties. switched gears again and are in the past few years than previ- But where the Nintendo DS SECTOR: 2003 3Q 2004 3Q CHANGE spending less on apparel. ously, thus wooing away con- could really affect apparel sales Deflationary pricing trends, a sumers’ discretionary incomes. is when teen girls figure out they Clothing and Shoes $112.51 $118.12 5% growing interest in consumer “Things like stain-resistant ties can pass notes to as many as 16 Furniture/Household Goods $129.44 $142.32 10% electronics, especially iPods and don’t compare with plasma TVs classmates and friends via the Nintendos, and a return to “nest- to get people to channel their portable game’s wireless local Gas and Oil $101.97 $102.61 0.6% ing the home” are pulling dol- money,” McIntosh said. area network, using a stylus to Fuel Oil and Coal $97.68 $104.36 6.8% lars from apparel. Indeed, the consumer elec- write text and draw pictures. According to data from the U.S. tronics category is forecast to “That [writing and drawing] Department of Commerce’s capture one of the largest shares capability makes this a girl’s item Bureau of Economic Analysis, real of holiday-related gift spending as well as a boy’s. Otherwise, personal consumption expendi- this year, several analysts have video games are 90 percent male. Home Goods Outpace Apparel tures on clothing and shoes, which projected. Once this gets into wider distri- (Percentage change in personal consumption expenditures from 2Q to 3Q of 2004) include women’s and men’s appar- Meanwhile, riding on the bution, girls are going to start say- el, experienced a 5 percent year- heels of mortgage refinancings ing, ‘Hey this thing is sort of Clothing and Shoes: 1.5% over-year gain in the third quarter. — with which consumers used cool,’ ” Johnson said, calling it the This compares with a 10 percent new-found loans to renovate or first gender crossover of video Furniture/Household Goods: 2.8% increase in spending on furniture redecorate homes, frequently gaming capabilities. SOURCE: U.S. DEPARTMENT OF COMMERCE, BUREAU OF ECONOMIC ANALYSIS and household goods and a 6.8 with the hippest consumer elec- Of course the other much- percent jump in fuel oil and coal tronics — was the birth of the do- hyped portable electronic expenditures. it-yourself phenomenon. Now device attracting consumers In fact, teens have begun to goes, women 13 years and older According to Jay McIntosh, more women are jumping on attention is Apple Computer see the iPod as something of an spent $39.4 billion in the latest director of retail and consumer that bandwagon, which is a plus Inc.’s iPod music player, which apparel statement, apparently year ended Aug. 31, an increase products for the Americas at for home improvement retailers is now being sold at traditional making deals with parents dur- of 3 percent, according to recent Ernst & Young LLP, the shift in such as Home Depot and Lowe’s, department stores such as ing the back-to-school shopping data from Cambridge, Mass.- total consumer spending away but has a negative impact on Macy’s and Lord & Taylor. season this past summer to based STS Market Research. from apparel over the past year apparel retailers, McIntosh said. Recognizing the interest in per- spend less on clothing in order Still, Art Spar, president of is the result of several macro- Lastly, while the improved sonal electronics, the depart- to also buy an iPod. Of course, STS, noted in a recent interview: economic trends. fashion cycle compared with the ment stores are hoping con- the rise in spending on con- “The is always fighting One big factor is deflation. past year likely slowed the shift sumers pick up an iPod or even a sumer electronics likely won’t for its share of the wallet with “In apparel, you don’t have to away from apparel spending in digital camera as crimp spending on apparel alto- electronics and leisure activi- spend as much [today] to buy 2004, consumers still — and prob- stuffers, along with a cashmere gether, especially if women have ties. And I think for many seg- what you did before,” McIntosh ably always will — want a bar- or other “must have” anything to say about it. At least ments of the population, apparel said in a recent interview. gain. “Even as people are turning holiday deals this year. as far as sportswear spending is losing that share of the wallet.” Deflation, combined with the to fashion, they’re continuing to fact that consumers realized move toward the value retailers,” they could spend far less on said McIntosh. These are retail- apparel at discount retailers — ers such as Ross Stores or The as opposed to department stores TJX Cos., which operates the TJ The entrepreneur vs. the conglomerate — has also contributed to fewer Maxx and Marshall’s chains. apparel dollars being spent in Meanwhile, consumers con- 2004, he said. According to a tinue their lust for electronics. Dec. 1 Standard & Poor’s report, Take the two-screen Nintendo consumers “are finding discoun- DS, which was launched on Nov. ters’ wide aisles and large shop- 21 in the U.S. and sells for ping areas more convenient and $149.99. More than 500,000 units ‘shopper friendly.’ ” were sold in the first week of Shopping at discounters for availability. That made up about apparel is especially appealing 90 percent of all units available from an economic standpoint as in stores across the U.S. high energy prices tend to act as Craig Johnson, president of a tax on overall discretionary the New Canaan, Conn.-based income, particularly for lower- retail consultancy Customer

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©2004 Milberg Factors, Inc. 28 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM SFA’s Tall Orders for Tackling Competition

Continued from page 2 Saks is spending more on advertising, Revolution,” showed Saks wants to: particularly on ads with a very directed ● Rethink its positioning language by point of view on elegance, refinement, disassociating with luxury, which it con- delicate objects and personal style. siders passé. The term is “overused, not “Fred Wilson has made it clear he wants differentiating; staid; snobby, and safe,” more excitement, splashier events and to according to a source familiar with the renovate the flagship,” one source said. management presentation. The new Saks Aside from the flagship, upgrades and buzz is “high-performance,” which man- renovations at other key locations are agement believes implies “ageless and being considered, such as the Atlanta, energized fashion, risky merchandising Beverly Hills and Boston stores, as previ- and a modern image.” ously reported. Staff changes continue, and ● “Revolutionize” service so it’s more additional store closings are likely, on top authoritative, one-on-one and geared to of the 10 SFA and three Off-5th closings an- “consulting” rather than selling, though nounced this year. There are 64 SFA stores that’s easier said than done. Great serv- and 53 Off-5th outlets. Last year, the stores ice is ingrained at Nordstrom and totaled more than $2.4 billion in sales. Neiman’s, but they have been at it for On another merchandise front, the spe- decades and it is part of their cultures. cial-size category is expected to be re- Consulting entails having expert fashion vamped so that plus-size and petite lines knowledge, developing close relation- get integrated with the assortments of other ships with customers and enhancing the sizes. Home, gifts and food, currently a sliv- “personal styles” of customers by expos- er of Saks’ overall volume, are expected to ing them to multiple brands to create in- play a bigger role in the offering, as man- dividual looks. Saks management report- agement seeks to create more of an eclectic edly is seeking associates who exude Saks Fifth Avenue. Below, Fred Wilson and Andrew Jennings. emporium, particularly at the 600,000- strong personal style. square-foot flagship, which accounts for ● Sell to more people who spend more about 25 percent of the chain’s volume. The on apparel. The Saks First loyalty club ben- THE REBRANDING STRATEGY strategy is being inspired by such stores as efits are offered to those spending at least Harrods, Bergdorf Goodman, Holt Renfrew $2,000 annually at Saks, but the new man- and retailers in Japan. ● agement believes there is a vast proportion Target younger customers. But all that costs money and the invest- ● of the population spending more than $5,000 Blend brands to project style and trends. ment won’t keep coming unless Saks Fifth ● annually on apparel that could be tapped. Shift to “high-performance” positioning. Avenue starts to show better sales and ● ● Sell to a much younger crowd. The Elevate service by transforming sales help earnings results and gains ground on current average age of the Saks customer to selling consultants. Neiman’s. The purse strings are held by ● is around 50, but the new team will target Create “spectacle” in the store. Saks Inc., the parent of Saks Fifth Avenue. the 25- to 34-year-old crowd. Retail experts As Brad Martin, the chairman of Saks say that’s a tough audience to mine for Inc. noted in his commentary on the fashion because it’s a demographic apt to third quarter, “SFA’s operating income spend on weddings, family matters like There’s a lot of action taking place in a whole declined modestly from the prior year, houses and children and tends to be very “ reflecting a 4.3 percent increase in com- disloyal to stores. It also is an extremely number of areas. parable store sales, improved gross mar- competitive market, targeted as of late not ”— Fred Wilson, Saks Fifth Avenue Enterprises gin performance driven by a systematic just by department stores but also by re- reduction in the level of promotional ac- tailers such as Anthropologie, Barneys ionistas tend to buy big brand names and analysis under different regimes over the tivity, offset by increased SG&A expenses New York and even, in the future, Gap Inc. need support when they select apparel. last 10 years and has utilized consulting primarily related to continued invest- ● Alter the in-store presentation and Fallon is also recommending that firms to set new directions, including its Live ment in key strategic store and market- marketing toward a “blending” of brands Saks must present “longer lasting styles a Little campaign a few years ago. Prior ing initiatives, including an increased to emphasize style over individual labels, that magnify a person’s style.” managements have commissioned such con- number of sales associates and related and exclusives. That would help differen- According to another source close to the sulting firms as McKinsey & Co. and compensation.” For the quarter ended tiate SFA from Neiman’s, which through- Saks strategy, consumers perceive Saks as Copernicus Group to enlighten them and to Oct. 30, operating income dropped to out its chain presents dominant, in-depth “the sage,” a retailer customers would look to help set strategic courses, improve service, $25.9 million from $27.3 million. Neiman assortments with designer shops. for discovering new products and to receive marketing and merchandising. Some of the Marcus’ specialty retail stores segment ● Pursue the “wow” factor so Saks daz- expert fashion guidance and personal atten- recommendations from Fallon are not new, reported operating earnings at $120 mil- zles with in-store displays and special events tion. But Saks has not lived up to that reputa- sources said, just couched in new language. lion, compared with $91 million in the and creates a retail “spectacle.” There’s tion and instead projects a blurry image, According to observers, the Saks team first quarter of fiscal year 2004 been signs of that already. For holiday, Saks which is largely due to uneven merchandising that was formed over the past year, while However, SFA has generally done well went Vegas-style, covering its Fifth Avenue across the chain, management and ownership setting a new course, has performed only this year, with operating income for the facade with 50 giant snowflakes illuminated changes through the past decade, not steering minor surgery on the brand so far. But nine-month period increasing to $62.3 mil- by 72,000 Philips LEDs. The snowflakes a straight course and fierce competition. there have been some noticeable changes lion from $38.2 million last year, driven by change colors in sync with music. Last December, Wilson became chair- on the selling floors, and a lot more to what Martin called “solid comp-store There is also an extensive and expen- man and ceo. Subsequently, Andrew come. The floors are less cluttered and sales growth in spite of a reduction in pro- sive plan to renovate the flagship, even re- Jennings became president and vice make fashion statements at the front of motional activity, and investing in key doing areas that were recently renovated chairman and Ron Frasch serves as chief departments with mannequin clusters strategic initiatives and absorbing certain and to use Frank Gehry as the architect. merchant. The top tier seems to be in displaying multiple brands. Many sales costs related to organizational changes.” In the Saks roadmap, targeting fash- agreement on creating a splashier, more associates have been added. Stores have While the SFA price promoting has been ionistas is not the way to go. The key is to entertaining Saks Fifth Avenue, and that been cleaned up, with bathrooms getting reduced through most of the year, mark- focus on the bulk of customers who are service levels and the merchandise have remodeled, and the sidewalks around the downs seem pervasive, with 40 percent off not confident in their abilities to create to be elevated. flagship are powerwashed twice a week. seen through much of the store during outfits with personal style. The nonfash- However, Saks has been through self- What also appears to be new is that this challenging Christmas season.

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AT YOUR SERVICE for advertising information, please contact Craig Kaplan at 212-630-4937. 30 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM Christi Harris’ Growing Presence Obituary By Holly Haber J.B. Nethercutt, 91, DALLAS — Christi Harris, a pioneer of the cosmetic makeover during the early Seventies, is quietly bringing her style of rela- tionship selling to specialty stores. Owned Merle Norman Harris has a solid reputation in Dallas, where she has an eponymous store and makeover center at the Galleria mall NEW YORK — J.B. Nethercutt, nephew of that sells her extensive line of treatment and color products. beauty entrepreneur Merle Norman and She also sells directly to a base of 15,000 consumers via mail owner of the eponymous company Merle and the Internet. Norman Cosmetics, died last Monday at With an eye toward gaining broader exposure, Harris St. John’s Hospital in Santa Monica, opened a showroom in January at the Dallas Market Center to Calif. He was 91. Funeral services were pitch her body, hair and skin potions to retailers. About 15 in- held Friday at the First Methodist dependents have picked the lineup, and Nordstrom this sum- Church in Santa Monica.

mer placed her treatment collections in three of its Texas GEORGE MAYOPHOTOS BY HENSON 2ND The cause of death was respiratory stores — Houston, Austin and Plano. Christi Harris and some of her hair care items. disease, according to Bernard Johnson, “Our customers love the product,” en- funeral director of Gates, Kingsley & Gates thused Kelly Rothschild, beauty buyer for 12 min treatment cream and a styling spray gel. Moeller Murphy Mortuary in Santa Nordstrom stores in Texas, Georgia and All are 8 oz. except for the protein and vita- Monica. Florida. BEAUTY BEAT min treatments, which are 4 oz. Nethercutt cofounded the business in “Christi is a very involved vendor who is in “That old thing of ‘we better raise the 1931 with his aunt and her husband, the stores promoting her line. We are absolutely looking at ex- price if we go into a department store’ — wrong,” Harris de- Andrew Norman. Together the trio built a panding it to other stores, and Texas is where we would look clared. “People say, ‘It’s $10 for a shampoo? I want the whole vertically integrated company that first, because that is where she is and can support the line,” collection.’” manufactures all of its own products. The Rothschild said. Her two antiaging skin products have also done well — a 1- private, family-owned cosmetics firm For Harris, who built her business doing clinics and oz. Hydradermal Lift Complex serum for $85 and a 1-oz. built a network of 2,000 franchise stores classes, there is no point selling treatment products unless Hydradermal Under Base cream, to smooth skin under make- primarily located in shopping centers and the client knows how to use them correctly. She has staged up, for $45. strip malls across the U.S. and Canada. six all-day events at Nordstrom, in which she has taught skin The body treatment elixirs are a four-step process — a 12- During his 73-year career, Nethercutt theory or used a machine to analyze hair. Thirty to 40 oz. cleanser at $23, an 8-oz. exfoliant for $28, a 12-oz. moistur- was recognized as an authority in the women attended each appearance, she said. izer for $36 and a 6-oz. moisturizer spray sealant for $38. chemistry of cosmetics, and he served as “You have to build a customer base and get your name out, Harris also is selling a linens-room spray called Off the president of the California Cosmetics and we spend 30 minutes with each woman who comes to our Line, which somehow captures the aroma of line-dried laun- Association and later as director of the events,” said Harris, claiming 95 percent of the women bought dry. Nordstrom is carrying it, and she is talking with hotels Toilet Goods Association, now known as products after a consultation. “If you have good products, you about using it in their rooms. the Cosmetics, Toiletry and Fragrance have to educate them on how to use them correctly. If they use Christi Harris Co. does close to $5 million in annual sales, Foundation. it wrong, they will think it’s not working, and it winds up in she said, including direct sales of skin care and color lines He is survived by two sons, Jack and their drawer. I would rather not go in so many stores so fast that she is not currently wholesaling. Robert; two daughters-in-law, Helen and but get repeat sales.” Harris expects her wholesale business alone will reach $1.5 Roberta; two grandchildren, and two The hair care has been a bestseller, partly since all seven million in 2005, when she expects the products to be in 50 stores. great-grandchildren. His wife, Dorothy, products add up to just $87, including two different shampoos, Harris also plans to launch three hand-treatment products died earlier this year. a conditioner, a detangler, a protein treatment spray, a vita- and a four-part men’s skin care line to retailers next year. WWD, MONDAY, DECEMBER 13, 2004 31 WWW.WWD.COM Technology Makes a Fashion Statement

By Cate T. Corcoran Genevieve Bell NEW YORK — Intel as a fashion brand? The merging of fashion and technology was the point of a presentation the semiconductor company gave fashion editors here last week at Thomas Keller’s new restaurant, Per Se. The company’s chips are power- ing a new generation of sleek technology with appeal to women, such as fully loaded lap- tops with wireless Internet ac- cess that are small and light- weight enough to fit in a purse (of course, they start at $2,000). Genevieve Bell, an anthro- pologist in Intel’s research and

development group in Portland, THOMAS IANNACCONE PHOTOS BY Ore., spoke about her research Mary Alice Stephenson wears a Chanel bag with a This colorful bag is roomy enough for a laptop, into how people use new tech- cell phone compartment. portable media player and cell phone. nology in Asia. Mary Alice Stephenson, former fashion di- rather than simply designing video, 9,000 songs and tens of bag, said Stephenson. that is worn around the neck rector of Harper’s Bazaar and technology for technology’s sake. thousands of digital photos. Designers are also creating and comes in metallic leathers an Intel fashion consultant, According to a poll Intel com- Other chic gadgets Steph- all sorts of charms, holders, jew- and various colors. walked the audience through an missioned from Harris, 30 per- enson showed were the Treo 650 elry and other tech-related ac- “Designers are desperately array of fashionable gadgets and cent of men and 24 percent of smart phone — a cell phone that cessories. For example, there is trying to get their brand names accessories by high-tech and women ages 18 to 27 feel that includes a camera, PDA, e-mail the Prada Cell Phone Trick, on all that cool technology,” ac- fashion brands. their computer “reflects their and games — and the ultra-thin which attaches to a cell phone cording to Stephenson. And the “Throughout the world, personal style.” Motorola Razr phone, which is and lights up when the phone makers of that technology are women are embracing technolo- Stephenson began her pres- carried by designers like rings silently. The device retails trying to tap into fashion — gy as part of their family and entation with a humorous video Carolina Herrera. on neimanmarcus.com for $154. Stephenson cited Hewlett work lives, as well as for social, that showed women in New Intel collaborated with de- Juicy Couture has a pink plastic Packard’s and Nokia’s sponsor- spiritual and romantic occa- York struggling to walk down signer Julien Macdonald on a cell phone holder that goes ship of Proenza Schouler and sions,” said Bell. For example, the street and up stairs while limited-edition laptop bag ear- around the neck; the T-strap is a Zac Posen. mothers in India keep in daily toting ugly black laptop bags lier this year, and the acces- $9 brightly colored “We’re starting to see more contact with their children that were obviously much too sories team at Balenciaga for securing a cell phone while and more merging of fashion de- abroad via instant messaging, big and heavy for them. “You measured laptops when they jogging, and La Leash is a lariat sign and technology in a really and in Singapore, cell phones know those shots that we all ran were designing their iconic City and earpiece for a cell phone big way,” said Stephenson. display the direction of Mecca. of the woman jumping across In South Korea, cell phones are the street?” Stephenson asked, so small their owners decorate referring to the clichéd women’s them with stuffed animals so magazine image of a woman on they can find them, and it be- the go with arms outstretched comes an extension of their per- and three bags flying. “Those sonality, she said. pictures are obsolete.” In the last three years, Bell has The evidence: masses of bags interviewed more than 100 fami- from Chanel, Balenciaga, Coach lies in Singapore, South Korea, and Target that easily accommo- India, China, Indonesia and date a laptop and have compart- Australia about what they care ments for personal digital assis- about, and what technology tants, cell phones, BlackBerrys makes them happy and what infu- and portable media players, riates them. One of her goals is to such as the Creative Zen. The help Intel design new technolo- latter is the size of an eyeglass gies around these experiences, case and can store 85 hours of sends best wishes to Two More Gucci Execs Exit PARIS — Gucci Group is losing another pair of executives, turn- ing up the heat on chief executive officer Robert Polet, who must quell market jitters about a talent exodus when he delivers his long-awaited strategic plan Tuesday in London. According to market sources, the latest defections are Emilio Foà, group controller, and Luca Mavaro, director general of the group’s Swiss operations. A spokesman for Gucci Group parent Pinault-Printemps- Redoute had no comment. Foà confirmed he resigned and ac- cepted another job offer, but did not give specifics. Mavaro could not be reached for comment. Since Gucci’s dynamic duo Tom Ford and Domenico De Sole exited last spring, the Italian luxury group has lost more than a dozen high-profile executives. Among them were chief financial officer Robert Singer, Gucci Japan president Toshiaki Tashiro, Boucheron creative director Congratulations Solange Azagury-Partridge, communications executives Lisa Schiek and Tomaso Galli, merchandising chiefs Tom Mendenhall on the opening of your and Joshua Schulman and the presidents of Stella McCartney and Alexander McQueen, James Seuss and Susan Whitely, re- dazzling, new store spectively. Many, but not all, of those positions have been filled. One of in mid-town Manhattan the key vacancies remaining is the chief executive slot at Yves Saint Laurent after Mark Lee was moved over to the Gucci divi- sion in the wake of Giacomo Santucci’s ouster last October. As reported, investors are looking for reassurances that Polet can stem the executive drain — and that the former frozen-foods honcho from Unilever can deliver solid growth with the cash-cow Gucci brand while stemming the flow of red ink at YSL, Boucheron, Balenciaga, Stella McCartney and others.

DK-JJ ad 4.875x7.indd 1 12/10/04 5:53:41 PM 32 WWD, MONDAY, DECEMBER 13, 2004 Designer Deal: To Continued from page one The deal will allow Hilfiger’s firm to globally expand Lagerfeld Gallery, the women’s luxury ready- to-wear collection that encompasses the Karl Lagerfeld trademark, and the Lagerfeld brand women’s, men’s and accessories lines, which are licensed; add apparel and accessories categories, and open retail stores worldwide, according to sources close to the company. The transaction also includes the two Lagerfeld Gallery stores in Paris and Monaco. WWD has learned that Hilfiger has signed a five- year contract with Lagerfeld, who will design and pro- vide creative direction for his brands. It reportedly includes automatic three-year renewals. Neither Lagerfeld nor Hilfiger executives were available for comment Sunday. Hilfiger intends to open a New York showroom for the Lagerfeld business, which will continue to be based in Paris and will operate as a separate compa- ny under the Hilfiger . The Lagerfeld busi- ness will reportedly be run by Hilfiger’s president of new business development. The acquisition fulfills Hilfiger’s desire to create a multibrand company with multichannel distribution, a strategy that has been set forth by David Dyer, chief executive officer of Hilfiger. Hilfiger has been on the acquisition hunt for sever- al years, having looked at Calvin Klein, Marc Ecko Enterprises and Rocawear. But the Lagerfeld deal comes at a difficult time for the company, which is being investigated by the U.S. Attorney’s office for its commission policies. The probe is still in its investiga- tive stage and, while criminal in nature, no indict- ments have been issued against any individual or enti- ty. Analysts have predicted Hilfiger could end up with more than $100 million in tax liability. Approximately Karl Lagerfeld in Tokyo. 10 lawsuits have been filed against the firm and former and current employees have received grand jury subpoenas. The investigation is not expected to impinge on the Lagerfeld deal, which is slated to close within in the next 30 days, said sources. Arguably one of the most prolific and talented designers in the world, Lagerfeld designs eight collections a year for Chanel, Fendi and his own Lagerfeld Gallery, and how he does it remains one of fashion’s biggest mysteries. The Hilfiger deal is unrelated to Lagerfeld’s contacts with Chanel and Fendi. Lagerfeld’s employment contract with Chanel — where he’s been designing for 22 years — is said to be indefinite and for millions of dollars a year. Chanel’s fashions and fra- grances are believed to gener- ate revenues of more than $2 billion a year. Because of his commitments in fashion and photography, Lagerfeld hasn’t devoted as much time as he might have liked to building his own trade- marks, and equally important, developing the kind of lucra- The H&M frenzy. tive licensees critical to build- ing a megabrand. up all over Paris.” WWD referred to his spring 2003 collection as Despite the fact that he “feminine, but not overtly. It’s a little stark, but hardly bleak. And doesn’t have a thriving global Tommy Hilfiger it converts sex appeal into wearable clothes.” business under his own name- Just last week, Lagerfeld said he’d like to stage a fashion show plate, two events this fall gave during New York’s Fashion Week in February for Lagerfeld Gallery. testament to Lagerfeld’s worldwide popularity. His designs for H&M were a hit and ini- Lagerfeld already has women’s, men’s and accessories lines under the Lagerfeld tial deliveries virtually sold out on the first day at many of the 500 doors that carried name, but those licensees couldn’t be learned at press time. They will become part of the line. And during his visit to Tokyo to open Chanel’s largest store in the world a lit- the acquisition, said sources. tle over a week ago, Lagerfeld was treated like a rock star and was mobbed with fans Lagerfeld opened his first Lagerfeld Gallery store in Paris on Rue de Seine in 1998, — many of whom waited for 10 hours to see him. “I don’t know how they are so well- which he financed with earnings from licenses. “I have my Chanel and Fendi incomes informed. What is quite flattering for a man my age, the public is quite young,” to live off, but I can play with my royalties,” said Lagerfeld in 1998. In 2001, Lagerfeld Lagerfeld said of the Tokyo mayhem. opened a 1,000-square-foot Lagerfeld Gallery store in Monaco, which carries Lagerfeld In recent years, Lagerfeld has sharpened his Lagerfeld Gallery line, which he Gallery women’s rtw and accessories as well as Lagerfeld’s women’s and men’s fra- launched in 1999, infusing it with a clear identity and a more personal sensibility, grances. (It couldn’t be learned at press time whether Lagerfeld fragrances are part of rather than jumping on fickle trends. While its volume remains small, the line has the deal.) The shops also stock magazines and books from his 7L publishing venture. received good reviews from the press and stores such as Neiman Marcus and Jeffreys. Over the years, Lagerfeld has made numerous attempts at developing a less expen- Reviewing the spring 2005 Lagerfeld Gallery show, WWD called it “a smart sassy sive rtw line, but with little success. He had a licensing deal with Bidermann collection” and referred to the A-line flapping over underskirts as Industries U.S.A. for Karl Lagerfeld women’s wear and KL by Karl Lagerfeld sports- “fresh looking tailoring, and it turns out, a sensible take on the volume that’s amping wear in the Eighties, which never really took off and ended in January 1987. That same WWD, MONDAY, DECEMBER 13, 2004 33 ommy to Buy Karl

year, he signed with the West German apparel firm Klaus Steilmann presentation to analysts in September. According to Scirocco, the compa- GmbH & Co. to manufacture his KL by Karl Lagerfeld sportswear col- ny was setting its sights on businesses where it could “roll the brands out” lection, and that deal lasted eight years. In 1995, Lagerfeld signed a through licensing opportunities at the international level, as well as at five-year agreement with Italy’s Selene SpA for a signature collection, retail. The company has also been interested in brands that have the but there were problems with production and delivery. The agreement potential for diffusion lines and generating e-commerce sales, he said. was discontinued in 1997, the year Lagerfeld bought his name and compa- As of Sept. 30, Hilfiger had cash and cash equivalents totaling $364 mil- ny back from the former Vendome division of Compagnie Financière lion, versus $250.7 million a year ago. Richemont SA for a symbolic franc. He then signed a line with an undis- Because of the U.S. Attorney probe, Hilfiger’s market capitalization closed Italian company — which many believed to be the firm that pro- has dropped by $300 million, and undoubtedly it has been a distraction for duced Fendi rtw — for a signature business, Lagerfeld, for spring 2001. the company as it tries to restore its fortunes. The firm, which has been Despite the small size of Lagerfeld’s businesses, they would appear to cooperating with the investigation, has hired former Manhattan U.S. perfectly fit the type of acquisition for which Hilfiger has been Attorney Mary Jo White as legal counsel. She is currently a partner at the searching. Among them would be that the purchase would be able law firm, Debevoise & Plimpton. The company has also had some major “to generate free cash flow within a reasonable period of time,” executive reshuffling in recent months. Following the departure of Joel said Joseph Scirocco, chief financial officer of Hilfiger, during a Newman, executive vice president for finance and operations, came the appointment of Bob Rosenblatt as chief operating officer, as well as group president and chief operating officer of the Hilfiger USA subsidiary. The company also promoted Lynn Shanahan to the new post of group president of its U.S. subsidiary’s wholesale business. In addition, last week, James P. Reilly, vice president and corporate controller, resigned. Hilfiger has been in the midst of trying to turn around its struggling women’s and men’s sportswear business for several years. In the most recent quarter ended Sept. 30, Hilfiger’s revenues slid 2.2 percent to $536.1 million, compared with $547.9 million in the year-ago quarter. The company earned pretax income of $69.3 million, down 14.4 percent from $81 million a year ago. It attributed its sales decline to lackluster back-to- school and early fall seasons, as well as continued economic weakness. However, the European business continued to be a bright spot, where net revenue increased by 28.3 percent to $195.6 million, compared with $152.5 million a year ago. The company has said it believes the turnaround of the U.S. wholesale business will be delayed beyond fiscal 2005. It expects fiscal 2005 revenues to decline in the high single digit percentage range as compared with fis- cal 2004. Within the wholesale segment, Hilfiger anticipates declines in the men’s wear, women’s wear (including U.S. junior jeans) and children’s wear divisions. Lagerfeld had a golden opportunity to dabble in the mass market this year with the H&M collaboration and played it to the hilt, using his like- ness in the clothing’s graphics and photographing the ad campaign, in which he also appeared. While enormously successful, Lagerfeld was dis- appointed that the small quantities of wearable basics that H&M produced meant racks went bare within minutes, leaving some customers frustrated and empty-handed. He told WWD last month he would not extend his deal with H&M, as it was conceived as a one-time event — and he prefers to move on to the next thing. But the success of that collaboration has reportedly convinced the Hilfiger executives that a lower-priced Lagerfeld line could be enormous- ly popular, and that may be one of the strategies it takes with the Lagerfeld trademark. Lagerfeld spoke recently about his penchant for designing clothes with mass appeal. In an interview in September, he said he applied his full- strength design sensibility to the H&M project and based his 30-piece col- lection for women and men on his Lagerfeld Gallery concept and his per- sonal penchant for sleek tailoring, white shirts and touches of hardware. “The work process is the same for expensive clothes or inexpensive clothes,” he said in a WWD interview. “I thought it should be a strong graphic statement. There’s hardly any color. They’re very simple, basic items, but ones I think are right for modern life.” Priced from $19.90 for a T- up to $149 for a wool-cashmere coat, the Lagerfeld for H&M line ranged from women’s and men’s wear to fragrance and accessories. Lagerfeld’s chic skirts, narrow-sleeved and tuxedo shirts were sold in only about half the company’s 1,000 doors, to give the line a more exclusive cachet. Two looks from Lagerfeld Gallery. “[H&M] is a fashion phenomenon and I like to be a part of those things,” said Lagerfeld in an earlier interview. “It’s part of my job. It’s the modern thing to do. Also, I like the idea of my name being used on a broad scale.”

January. A Prada Group spokesman said the choice “was a bash to say she would in fact be keeping the dress. creative decision made by the designer himself.” Although SHOPPING SPREE: For Lane and Slane’s return to the Big Apple, Fashion Scoops Helmut Lang’s 2003 sales dropped 33.1 percent to 27.85 Landon Slane will be lunching Thursday with Gigi Mortimer, Tory million euros, or $37.1 million at current exchange rates, the Burch, Valesca Hermes, Jennifer Creel, Ulrica Lanaro and Ellen ART CROWD: The artist Matthew Ritchie will be honored at Prada spokesman said the choice “was in no way determined Niven. Afterward, Slane will march the gang over to the new Thursday’s Artist’s Ball at the Guggenheim, sponsored by Dior, by financial or economic factors.” Before doing his first men’s Fragments store on Madison Avenue for some preholiday which will dress the museum in gold. Expected to walk among runway show in July 2002, Lang featured several men’s looks in shopping. the mix of the event’s regulars — including Delphine Arnault, his women’s shows. A Prada spokesman said Lang would return Eva Lorenzotti, Sally Albemarle, Anh Duong and Jacqueline to that format as well as hold a press presentation in January, WHERE’S THE ICE CREAM?: Robert Polet is already bringing his Sackler — are such celebs as Chloë Sevigny, Claire Danes and although it was not yet known where. food experience to Gucci. The first Gucci Café is scheduled to Christina Ricci. open at the new accessories boutique in Milan’s Galleria Vittorio SECONDHAND NEWS: The white silk crepe dress covered with Emanuele today. The café will offer a selection of coffees and GAME SERENA: Serena Williams will launch her Aneres collection rhinestones that Rachel Roy wore to the Institute has teas, together with chocolates created and exclusively made for with a runway show Wednesday night at The Forge, a Miami been around. Celanese’s fashion director Jim Siewert plunked Gucci by Ernst Knam, one of Milan’s best-known pâtissiers. The Beach eatery. Williams’ sister Venus and Brett Rattner will check down $900 for the Norman Norrell number at Doyle Galleries in chocolates will be shaped as tiny cubes and decorated with the out the 35 looks, which will include suits, dainty dresses and 1996, and lent it to a friend here and there for special house’s staple double-G logo. Mini quiches and muffins will red carpet attire. occasions such as the Buffalo Philharmonic’s New Year’s Eve also be available, together with Italian wine. The design of the gala. A few weeks back, he sold it for less than he paid for it to café is in line with that of the store, featuring dark wood, steel HELMUT REDUX: Helmut Lang is taking his post-modern men off What Comes Around Goes Around. Roy stopped by with her elements, lacquered panels, and amber and burnished brown the runway. After five seasons of showing its men’s collection in man Damon Dash and took a few pieces on consignment. The tables and chairs. The tableware was created exclusively for Paris, the Prada-owned brand is forgoing the catwalk in leggy beauty reportedly called Tuesday morning after the Met’s the new cafe. 34 WWD, MONDAY, DECEMBER 13, 2004

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Fast work. 212-714-2186 Area Visual Manager Fax resume and cover letter including Business Development / Eastern Region LUCKY BRAND has an outstanding Designer $70-80K. Current exp. in girls 4-16 jr. salary requirements to: attn. Design would market the company’s licensed career opportunity for an Area Visual COMPUTER ARTISIT driven knits & woven sportswear requ’d 40% (212) 684-3254 software product to major on-line apparel Manager in the Northeast area, based Major Childrenswear Company seeks denim. Mac, Illustrator, Photoshop. Import pro- retailers on the East Coast. Position re- out of NYC. Must have 3-5 years exp. talented and experienced Girls Artisit duction packages from design inception. Designer to $80K. quires an ability to generate sales leads, in visual merch. AND display. Will be to work in Illustrator and Photoshop. Screen printing, embroidery graphic artwork. Current exp. in missy, denim bottoms. establish and attend sales meetings, move responsible for the CREATIVE presen- Must be able to draw flats, create prints, Call 973-564-9236 Jaral Fashion Agcy. Well-known branded midtown the business development process for- tation within a series of stores. Excellent embroideries. plaids, and appliques. company.Call 973-564-9236 Jaral Agcy ward, close the sale, and work coopera- CHINA MANUFACTURING comm. skills and comfortable working Min. 2 yrs experience in Girls Apparel. tively in a team environment to manage independently and with a team. Must Hong Kong/Shenzhen China office Must see a strong portfolio that includes Designer Assistant Design a new account relationship over time. Many opportunites available. be available to travel within the respective boards. Good working conditions plus areas. Portfolios preferred. Bridge suit and separate house seeks Prior fashion industry marketing expe- WWW.IQTRADINGCO.COM benefits. Please fax resume attn: Julie good organizer with strong sketching Jewelry Designer rience and industry contacts are preferred 212-967-8108 For consideration, please fax your ability responsible for first sample. Custom Jewelry Co. seeks Designer with but not absolutely necessary. Individual resume and salary history to: Minimum 5 years exp. Great benefits! minimum 2 years experience & strong should be tech savvy and able to grasp (323) 589-2460 or email to: Credit & Collection V.P. to $150K. Current Fax resume to Maddie: 212-869-5393 organizational skills. Must be able to and describe new trends in fashion [email protected] exp. in min. $250K mill vol. Apparel Co. take an idea from concept to final pre- and technology to prospective fashion req’rd. Factored receivables. Supervise 15. Designer sentation and develop the latest trends. clients. Ability to thrive in a fast-moving, Lucky Brand is an Equal Opportunity/ Exp. w/ Wal-Mart’s, K-Mart’s, as well as the Please Fax resume to: 213-746-8988 entrepreneurial start-up environment ATTENTON ALL BUYERS Affirmative Action Employer (M/F/D/V). Federated’s,May Co’s etc. Resolve store de- Boy’s Associate Designer is a must. Private Sale duction problems. Large Mdtn. Co. Call Major apparel company seeks associate Compensation based upon experience. 2005 Spring/Summer Collections Arline Simpson Assoc., Inc. 973-564-9236 Jaral Fashion Agcy. designer with experience in newborn, EDI Coordinator/ Substantial up-side through commissions. Fall/Winter and Holiday infant/toddler. Responsibilities include Controller, CPA Interviews to be conducted in New York The best Designer collections from Italy Global Sourcing, Home Furnishings designing boy’s line, creating artwork Compliance Specialist Roberta Scarpa, Nora Attalai, Roberto CUTTERS and working with sample room. Must N.Y.C. Private Label Mfr. of fine apparel City on December 14,15, & 16. Please for- QA, kids & menswear ward letter of interest and resume to: Cavalli, Ungaro, Thierry Mugler, ect... Cust Svce/Order Proc Manager Minimum 5 years exp. in womens be proficient with MAC and have seeks exp’d. individual. Small business APPOINTMENT ONLY • PLEASE CALL couture and eveningwear. Sample and strong Photoshop/Illustrator skills. atmosphere with other office duties. [email protected] Sales, Boys & Mens Visit us at: http://www.fashional.com (646) 414-7010 or (305) 282-7118 212 [email protected] productions. Please call: 212-764 0840 Fax resume 212-239-2766. E-mail resume to: [email protected] WWD, MONDAY, DECEMBER 13, 2004 35

Senior Execs Needed Men’s and Women’s Contemporary seeks Sr. Acct. Execs. to join our team. INTERNATIONAL LUXURY BRAND Energetic & highly-motivated candi- Seeking motivated individuals to participate dates must have established relation- in the exciting and rapid growth of their Women’s Division ships w/ dept stores. 3 yrs. in Sr. posi- tion req’d. Denim exp. recommended. Women’s RTW Polished presentation skills and strong merchandising abilities. Must SALES DIRECTOR/SENIOR ACCT. EXECUTIVE: Designer to Contemporary have effective communication and retail background preferred with reliable department store, executive level, contacts. SALES EXECUTIVE math skills. Excel req’d. Competitive Experienced in negotiating competitive Gross Margin agreements and de- •3 plus years sales exp., Benefits. Email resume to: pref. in Junior Sportswear. [email protected] veloping co-op advertising plans. Strong sales presentation, communication •Strong account base of Mid- and analytical skills required. Excellent compensation package available. tier and Specialty chains. V.P. Sales DESIGNER: Work directly with Creative Director & Chief Designer in devel- •Understanding of fashion JEWELRY & ACCESSORIES oping the women’s collection from concept to finished product. Must have forward Jr. customer. Well respected recruiting firm has 4 V.P. Positions for 4 RI Based Firms design degree, strong fashion sense with 3+ years experience. Need to •Salary $50K-$80K plus All are $150-$180K level. Seeking experts flat sketch and illustrate ideas to create detailed tech packs to communicate bonus, unlimited commission with mid-tier, dept. stores, home shop potential, medical, paid clubs, and/or major discounters. with overseas sampling division. E-mail Mr Lemire at: [email protected] vacation and sick time. Or visit us at: www.ESPglobal.net SENIOR TECH, DESIGNER: Work with the design & merchandising team NOTE: E-mail resume as a in perfecting fit on all woven & knits. Must have 4+ years experience with word document attachment to Designer or Contemporary labels. A strong knowledge of patterns, sewing [email protected] and grading is required. Should be proficient in creating detailed tech. packs for overseas sampling and production. DIRECTOR OF RETAIL OPERATIONS: Reporting directly to the CEO and Sales Executive Chief Merchandiser of Women’s Wear. Responsible for Sales, P&L, Visual Handbag & Stationary co. seeks Retail Sales Positions Merch, staffing, and overseeing new store openings in Asia. The ideal can- REPLAY, an Italian fashion Co. special- person w/ min 3 years exp to join izing in cutting-edge jeans as well as didate will have 8+ years of experience with premier designer brands. its growing team. Knowledge of complete collections of fashion for men, Asia experience a plus, must be willing to relocate. backpack industry a plus. Large women, and children is seeking several exp’d. retail sales people to work in the SENIOR DESIGNER: Work directly with the Creative Director and Chief accounts available within the mass Replay flagship store in SoHo. Full & Merchandiser in designing and overseeing the execution of the line from market, department & specialty stores. Part-Time positions are available at concept to finished product. You will head the design team while working Fax resumes to: 212-695-7073 competitive hourly pay plus sales bonus or email [email protected] potential. Please Fax/E-mail resume to: closely with the merchandising team. The ideal candidate will have 4+ years 212-217-9075 / [email protected] of experience in Designer or Contemporary clothing labels. Must be crea- tive and aware of market trends, able to multi task. Must relocate to Asia. Production Coordinator Traffic Clerical STORE MANAGER TECH. DESIGNER: Work with the Design and Merchandising team in per- Small leather goods manufacturer seeks Est. WO. Suit Co. needs indiv for pur- SALES EXECUTIVE Busy W. Village shops need manager an experienced (min. 3 yrs.), organized chasing, cost sheets, cut tickets. Must Fast paced missy/large dress mfr. with exp. We offer benefits, good fecting fit on all wovens and knits. Must have 3+ years of experience with person to handle all aspects of production know excel. Well organized. Fax environment and room for growth. Designer or Contemporary labels, with strong knowledge of patterns, sewing &follow-up. Must have good communi- 212-302-5259 for immediate interview. seeks aggressive and highly moti- Fax Alida: 212-675-6360 and grading. Must be willing to relocate to Asia. cation & computer skills. Please send vated salesperson. Must be able to resume with salary requirements to: start immediately. FORWARD RESUMES TO: Fax: (516) 944-6686 Veronique Maternity Please fax resume in confidence Madison Ave. high-end boutique seeks Sales contact Jacquelyn Wenzel / Design and Retail contact Tia Cibani Production Import Assist to $50K. Current to Ms. Carla @ 212-869-3639 Sales Associates w/high energy & retail FAX: 212-414-1053 / E-MAIL: [email protected] exp. in factory liaison from inception to experience. F/T & P/T needed. Please Fax completion. Quotas, P.O.’s, ticketing, con- or E-mail resume to: 212-831-2072 struction of garments, fabrics, excel, word. [email protected] Call 973-564-9236 Jaral Fashion Agency. Div. Head/key account. Sales $180 +++ GLOBAL LUXURY Tech Design/Production Asst. Production Patternmaker Current exp. in women’s outerwear & coats w/ WEST VILLAGE SHOP 2 POSITIONS AVAILABLE Est’d Sptswear mfr seeks 1st thru strong relationships w/ stores reqrd. Growing Busy W. Village shops need sales pros. ACCESSORIES & FOOTWEAR production patternmaker specializing multi div. Co. Call 973-564-9236 Agcy. Minimum 1 year retail exp. RETAIL BUYER Leading Woven/Knits Sportswear in pants/bottoms. Good communica- Fax Alida: 212-675-6360 Import Co. in NY is seeking a Design tion skills req’d for direct interaction Global Luxury Leader in Accessories w/retailer. Min 8 yrs exp. Fax resume Tech / Production Asst. for its & salary req’s: 212-819-1269 Attn: Ivan EMMELLE BOUTIQUE and Footwear seeks a Retail Buyer knits / woven division. Must be a based in New York. Minimum 5 SALESPERSON detail oriented individual with 2-3 Production/Sourcing Mgr. Madison Ave. Designer Boutique seeks years retail Buying experience; years experience to review fits, Sales Associate with a minimum of (3) Manage purchasing of imported knits/ yrs. experience. Must be highly motivated luxury background preferred. Excep- spec garments, prepare production woven/leather products for major acces- tional proficiency in Excel and and professional. Full or Part time. packages, approve B’looms / colors / sories/apparel firms. Min. 5+ years exp. Please call: (212) 570-6559 or strong retail math skills required. accessories, and coordinate with Travel to China 2x per year. E-mail all Fax resume to: (212) 249-1427 resumes to: [email protected] Sales Manager Position entails all aspects of Sales / Production. Must know grad- Budgeting, Buying, and Merchan- ing and possess good communica- PUBLIC RELATIONS John Bartlett and HMS tion skills w/daily E-mail to overseas Fashion Watches dising for US Boutiques. Please MANAGER Furnishings & Accessories (Brand Names & Private Label) Fax resume with salary history to : factories. Fax / E-mail resumes to: Neck Ties/ Clarins USA, Inc. seeks a Public Rela- Seeking exp’d. Sales Pros w/Direct Dept. Freelance Designer seeks Sales Reps to 212-382-1488 tions Manager for our mid-town Man- & Chain Store contact. Fax or E-mail to: sell a fresh new line of highly attractive 212-223-8233 Seek high energy individual 646-536-3719 / [email protected] [email protected] hattan office. This position is an essen- with minimum of five years Men’s Neck Tie & Ladies’ designs tial support system to the PR depart- to mfrs. worldwide. E-mail all resumes to: ment, working under the direction of experience to spearhead [email protected] FASHION - Technical Fashion Designer the Director. Responsibilities include sales for furnishings and Rare Opportunity needed w/Assoc. Applied Science deg. communicating key Clarins Brand and in Patternmaking & 2 years exp. to prep. MUNDI/WESTPORT Clarins Fragrance Group messages to accessories: shirts, , HANDBAG SALES tech. packages & Model Development the media. Must be able to identify and , small leather cultivate visibility opportunities for Fashion forward bag importer has an sheets (MDS) for design team & over- Designer/Product goods, gloves and . opening for an aggressive Salesperson seas factories via Web PDM. Correct & Clarins product lines and fragrances. Manager Must have 3-5 yrs. exp. in the beauty Become a team player in a w/experience selling Majors & Jr. Chains. modify images. Create & combine pat- E-mail resume: [email protected] tern designs & transfer into sketches Well est’d leather goods company based public relations field. Excellent com- fast paced work environment. using Adobe Photoshop program. De- in Northern NJ is searching for a top munication skills & travel a must. Good Travel Required. velop design thru color correction, fabric quality person to design, develop and understanding of competitive landscape selection using U4IA program. Imple- merchandise ladies SLG and Handbags. (mass & prestige), entertainment indus- SALES ment artwork in Adobe Illustrator pro- Must have min. 5 years exp. in handbags try & potential sponsorship properties. Fax Resume to 57th St. Women & Mens Showroom kenzie gram & combine them w/U4IA system. or SLG and will be responsible for: Email resume with salary history to: Kevin Lynk: 212-765-1101 seeks person with min 3-5 yrs European Mail resume to: Salant, A Division of sketching, following through on prod- [email protected] EOE sales exp. Must be very organized. Call Join a very fast growing company Perry Ellis International, Inc. 114 Ave- uct devlpt, costing, and analyzing sales only: 212-980-0775 with excellent commission structure! nue of the Americas, NY, NY 10014 reports. Excellent communication and QUALITY ASSURANCE ASSOCIATE organizational skills are a must. Int’l Leading Women’s Apparel Co seeks an Lingerie licensee for Daywear, Bras travel req’d. Excellent salary and benefits. outgoing & ambitious entry-level pro- SALES EXECUTIVE &, Sleepwear, and Robes Email resume to [email protected] fessional with basic fabric & garment Branded up-dated missy sportswear seeks Independent Sales Reps for General Manager - inspection knowledge to assist Direc- company needs exp’d salesperson with the territories: Accessories tor of QA & Testing. Must be detail KENNETH COLE department store connections. Great Product Development oriented, organized & dependable w/ opportunity, great atmosphere. •West Coast •Midwest BCBGirls Handbags excellent clerical and computer skills. Men’s Outerwear Fax: 212 362-1831 •Northeast •Southwest •South Dynamic Accessories Company with a MZ WALLACE Fax resume: 212-827-3052 Attn: SS showroom in New York City is seeking Growing Accessory Co. is seeking a Key Account Sales Must have specialty Store accounts an experienced individual with a retail highly motivated & exp’d. individual for Sourcing Director $150K+ Global exp. must have ladies sleepwear Seeking exp’d., motivated Sales SALES EXECUTIVE and major Department Stores in the or wholesale fashion/merchandising PRODUCT DEVELOPMENT. E-mail to: Very reputable overseas backpack/ hand- background. Individual will head up [email protected] Allen*Just Mgmt* 800-544-5878 Professional to join our team. Can- contemporary market. Fax/E-mail to: [email protected] bag factory seeks a sales executive in sales, and will coordinate product de- didates should have a minimum of the United States. Factory is eager to 610-932-7051 velopment with design.Individual must increase business in the United States be self motivated and willing to travel Spech Tech to $60K. Current exp. in 5 years experience in Better Men’s [email protected] kids knits & wovens. Specing. Making through wholesalers, retailers, premi- domestically & internationally. We offer PRODUCTION ASSISTANT Outerwear, possess strong work- um accounts and others. Factory cur- a comprehensive benefits package. Importer seeks experienced, organized, comments on fits. Issue for size grad- ing. Call 973-564-9236 Jaral Agency ing relationships with major and rently produces product for WalMart, Opportunities are unlimited! Please fax or detail oriented assistant to prepare spec specialty retailers nationwide, have Payless, JC Penney, Target, Sears, etc. email resumes including salary history to: sheets, develop purchase orders, Two Factories with over 3,500 workers. Jewelry Road Reps [email protected] track/follow up production schedules, SWEATER DESIGNER aworking knowledge of retail math Has certificates from all the major re- USA made designer collection seeking (203) 302-3810 and communicate with overseas offices HIP contemporary Women’s Sportswear and an understanding of merchan- tailers as an A-1A factory. If you’re an Costume Jewelry Road Reps with better via fax and e-mail. Minimum 3 years Company seeks designer with 4 years aggressive go-getter, and have the apparel, gift, and jewelry following for experience, MS Word & Excel knowl- import experience. Must have technical dise plans. Excellent presentation right connections this is the right op- WC, SE, and SW territories. Call Arthur Graphic Artist to $55K. Current exp. in edge a must. Technical garment knowl- knowledge of yarns and swearter and follow-up skills a must. To be portunity for you! Salary plus commis- @ John Medeiros Jewelry: 401-435-4114 edge a plus. Fax resume: 212-465-1257 kidswear pref. Screen prints. Embroideries. construction. Please fax resume to: considered for this outstanding sion package is available. Please email Appliques. Mac, Photoshop, Illus. Full Attention Chris: 212-302-5763 resume to: [email protected] time perm only. Call 973-564-9236 Agcy. opportunity, please Fax resume to: Road Reps Wanted Production Assistant Tech Designer to 100K. Current exp in 212-403-0551 Successful multi-million dollar Junior womens woven sportswear. Exp in liai- SALES MANAGER/to $100K+ needed for women’s private label Handbags/Dept. Store Denim Company expanding to include division. Position prepares color/fabric son w/ Wal-Mart + JCPenney standards Kenneth Cole Outerwear designer denim line. Seeking hard- Licensing Coordinator helpful. Call 973-564-9236 Agcy. Well estab. & successful Handbag/Access Entry-level w/min 1-year exp in licensing development, monitors & comments A division of G-III Apparel Group, Ltd. import co. is adding to staff & seeks a working road representation in the follow- with mass mkt retailers. Photoshop or on lab dips, handlooms, sample fabric sales PRO w/ expr. selling to mjr. dept. ing areas: West Coast, Texas, Florida & &shade lots. Communicates with Tech Designer to $35K. Korean/English stores. Must be a closer. Sal. + comm. Midwest. Fax resume to: 310-605-1750 Illustrator a ++. $30-35K. Fax resume reqr’d. North N.J. Min. 0-2 yrs. exp. ok. to Carla: 201-894-1186; email: vendors & customers. Maintains E-mail resume: reports & files. Candidate must be Spec packages. Illustrator. Excel. Call [email protected] [email protected] 973-564-9236 Jaral Fashion Agency. KARLYN FASHION RECRUITERS organized, detailed, with excellent CHILDRENSWEAR (Fax) 212-725-7116 (Tel)212-481-1941 follow up skills and an eye for color. Previous experience and excel Tech Design to $70K Sales Executive required. Email cover letter, resume Missy import exp. Chinese A+ Prestigious fast growing Child- Sales Support to $70K Merchandiser and salary requirements to: Jennifer*Just Mgmt* 800-544-5878 ren’s showroom is seeking an en- NY showroom support multiple sales exec BRA Merchandiser [email protected] [email protected] Jennifer*Just Mgmt* 800-544-5878 Lunaire, a leader in full-figure bras, is thusiastic and experienced Sales [email protected] looking for a bra merchandiser w/ a Technical Design Executive with previous customer strong market sense, a passion for bras SPEC TECH base with department stores and & product development skills. Production Coordinator Major Dress / Separates company boutiques. Candidate must have Fax resume in conf. to 212-725-0089 Major apparel company seeks seeks experienced spec tech min 3 yrs or email [email protected] production coordinator with minimum exp. Resp: maintain pattern rotation / strong organizational and follow- 2 years experience. Responsibilities tracking, fittings and graded specs. up skills. Computer literate a Lingerie Sales Pro include handling POs, price tickets, Daily communications w/ overseas must. Great Benefits package. Currently seeks a showroom sales position Merchandiser to $65K. Korean/English care labels and shipment followup. office, and dom. fty. Candidate must with a sleepwear/ loungewear company. reqr’d. North N.J. devel. assortments, pro- Individual must possess good be technical and organized, experience Please e-mail at: Strong contacts with specialty, chain, duction calendar, liaison w/ design + sales. computer skills and be detail oriented. in woven and a team player. Fax [email protected]. and discount stores. Call 973-564-9236 Jaral Fashion Agency. Fax resume 212-239-2766. resume attention Susan: 212-944-6835 Call John: 516-536-8576 Everything You Want To Know About Textiles

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