Stripes Ahoy!
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URBAN COST- EVOLUTION CUTTING A CHANGING LANDSCAPE AVON TO RESORT 2015 IS SHUFFLING THE DESIGNERS OFFERED UP A DIVERSE RANGE OF LOOKS FASHION WEEK SCENE ELIMINATE 600 AS THE SEASON WOUND DOWN. PAGES 10 AND 11 IN BERLIN. SECTION II POSITIONS. PAGE 2 ONLINE MEETS BOTTOM LINE Nordstrom Taps Tech, Brings Wanelo In-store By RACHEL STRUGATZ THE LINE BETWEEN brick-and-mortar and digital retailing is becoming more seamless by the day. Buzzy social shopping site Wanelo is stepping into the physical world with the help of Nordstrom, which is roll- ing out wall displays to 107 stores featuring styles that it TUESDAY, JUNE 24, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY already carries, but are rated most popular by Wanelo’s WWD users. For the Seattle-based chain, which garnered one million followers on Wanelo in just fi ve months, it’s a chance to tap into that dramatic growth. “People are just ready for an experience that is fully focused on shopping,” said Wanelo founder Deena Varshavskaya. “They have been frustrated with not being able to shop on Pinterest or Instagram.” Since Wanelo — short for Want, Need, Love — of- fi cially launched in 2011, more than 11 million users and 300,000 stores have uploaded 12 million products, which have been saved 2 billion times. The company was self-funded for two years before receiving outside investments and, to date, has raised $14 million from fi rms such as Floodgate, First Round Capital, Red Swan, Ooga Labs and Forerunner Ventures. There are currently 35 employees working out of the start-up’s San Francisco headquarters. Users can follow stores, friends and infl uencers — saving items to their profi le pages to purchase or organize their shopping. Users can only post items from verifi ed retailer sites. And once a brand claims its page, it can edito- rialize collections to engage with fans. Primarily ac- cessed via its mobile app, users can also visit and log onto Wanelo on a desktop. Stripes Nordstrom has 1.2 million highly engaged Wanelo followers who have uploaded more than 200,000 prod- ucts to the brand’s page. All told, the products have been saved 30 million times, with an average of 343 average saves per item. For Nordstrom, more prod- ucts are being saved on Wanelo than on Pinterest. Ahoy! SEE PAGE 16 MILAN — Stripes are ruling the Milan runways, SPRING 2015 Target Scaling Back lining up on suits, MILAN Cambodia Production sweaters, MEN’S COLLECTIONS pants — you By KRISTI ELLIS name it. At WASHINGTON — Cambodia’s commerce minister, the Gucci show here on Monday to make a pitch for more foreign di- on Monday, Frida rect investment, revealed that a second major U.S. Giannini’s take on nautical company — Target Corp. — has reduced its orders in the Southeast Asian nation over labor unrest. style ran from dressy admirals to Speaking at the Center for International and rebellious pirates. Here, one of the Strategic Studies, Cambodian Commerce Minister Sun latter, in silky pajama pants and a trim Chanthol said Target has pulled some production out of the country following a similar move by Levi Strauss blazer, accessorized with a sashlike & Co., which said in late May that it was scaling back cross-body sailor sack. For more on the on orders based on labor and human rights concerns. “Levi Strauss reduced their orders from Milan shows, see pages 4 and 5. Cambodia,” Chanthol said. “Target also reduced their orders from Cambodia because they are afraid of the labor unrest and so on, but so far since the incident in January it is practically calm and safe.” A Target spokesman said, “We can’t speak directly to the comments of the commerce minister as we don’t detail sourcing plans by region. As with any country, we adjust sourcing based on a number of factors.” Cambodian workers, labor groups and union leaders have staged months of protests and strikes, calling for an increase in the country’s minimum wage to $160 a month from the current rate of $100 a month. The Cambodian government, under pres- sure, raised the minimum wage to the current rate from $80 in February. A nationwide strike in Cambodia turned deadly on Jan. 3, when Cambodian security forces opened fi re PHOTO BY GIOVANNI GIANNONI SEE PAGE 13 2 WWD TUESDAY, JUNE 24, 2014 WWD.COM Avon Eliminates 600 Positions THE BRIEFING BOX tween $240 million and $250 mil- ment reached last month, Avon IN TODAY’S WWD By ARNOLD J. KARR lion in annualized pretax savings. will pay $135 million in fines but In its last annual report, filed not face criminal charges. AVON PRODUCTS INC.’s ongoing in late February, Avon said it had In the first quarter, Avon’s $400 million cost-cutting program 36,700 employees, 4,300 of them net loss grew to $186.3 million will result in the elimination of in the U.S. The firm’s sales repre- from a loss of $13.7 million in Nora Vai is another 600 positions, principally sentatives operate independently the prior-year period, and rev- the subject of in its corporate organization and and aren’t included in corporate enues declined 11 percent to “Model Call” North American business unit. head count figures. $2.18 billion and were down 3 on WWD.com. Avon expects to record related The Avon fiscal diet has also percent when the effects of cur- charges of $45 million to $50 mil- seen it undertake the “restructur- rency translation are excluded. lion before taxes, with about $40 ing or closure of certain smaller, Sales were $11.1 billion in 2011 million of the sum to be record- underperforming markets,” includ- before slipping to $10.56 billion ed during the second quarter of ing its businesses in South Korea, in 2012 and $9.96 billion last 2014. The cutbacks should result Vietnam and Ireland. Separately, year. Meanwhile, a $513.6 million in annual savings of $50 million Avon’s business in France entered profit in 2011 gave way to a $42.5 to $55 million. receivership in January. million loss in 2012 and a $56.4 MANAGEMENT The downsizing is part of the Last July, the company sold million loss last year, including ONE Cost Savings Initiative put forth its Silpada Designs jewelry busi- restructuring and other charges. OF by the company following the ness to Rhinestone Holdings for Wall Street hasn’t been impressed appointment of Sheri McCoy as $85 million in cash and potential by the attempts to “right-size” Avon. chief executive officer in April earn-outs of another $15 million Word of the most recent cuts came COURTESY 2012 and is expected to result in a if earnings targets are met over after the markets closed Monday. total global head count reduction a two-year time frame. It also “Wall Street is frustrated, PHOTO of 1,500 jobs as part of “an effort reached an agreement with one- rightly so, because we aren’t grow- to stabilize the business and re- time suitor Coty Inc. for Avon’s ing and we have some profitabil- turn Avon to sustainable growth.” reps in Brazil to sell Coty’s fra- ity challenges,” McCoy said at the Buzzy social shopping site Wanelo is stepping into the PAGE 1 The new round of cuts is simi- grances in that market. WWD Beauty CEO Summit last physical world with the help of Nordstrom. lar in size and scope to others As it’s reorganized, Avon has month. “If we look at growth, it’s made last December when about also labored to resolve a dispute all coming outside the U.S. But Target Corp. has reduced its orders in Cambodia over labor 650 posts, principally in North with the Department of Justice our goal is get the U.S. stable, look unrest in the Southeast Asian nation. PAGE 1 America, were eliminated. involving alleged violations of at how we learn from that because With the reductions made to the Foreign Corrupt Practices it is a developed market and we Italian yarn makers showing at the Pitti Filati trade show are date, Avon believes it has made Act connected to its business in need to understand direct selling noting a recovery in major traditional markets. PAGE 6 cuts that will translate into be- China. Under terms of an agree- in a developed market.” There is a generational passing of the torch taking place among family-run Italian yarn firms. PAGE 8 American Apparel’s Charney Fighting Back Felix Dennis, the colorful British publisher, died of cancer sion and speaking openly about sex. He’s also been PAGE 9 By EVAN CLARK Sunday at the age of 67. sued repeatedly for sexual harassment, and his handling of a settlement tied to one of the suits is Clinton Group forced change at ValueVision Media Inc., from DOV CHARNEY’S tabloid-ready life has always said to have contributed to his firing. He is also said new board members to a new chief executive officer. PAGE 12 had plenty of sex. to have had a part in posting online naked pictures Now it has a boardroom brawl. And it’s still just of an American Apparel employee who sued him. Zadig & Voltaire has inked a 15-year fragrance deal with beginning to heat up in the wake of his ouster last Charney’s departure made for a flurry of salacious PAGE 13 week as chairman, president and chief executive headlines, stories recounting his escapades and al- Shiseido’s Beauté Prestige International. officer of American Apparel Inc.