NEW YORK PARTY, COLLECTIONS PARTY TOMMY, CAROLINA, THAKOON, ALL AROUND THE BASTIAN, THE ROW... FASHION WEEK NEW YORK FASHION WEEK FETES. PAGE 21 ROLLS ON. PAGES 6 TO 10 GRANDSON STEPS UP Liliane Bettencourt Exits L’Oréal Board By JENNIFER WEIL PARIS — Liliane Bettencourt has passed the L’Oréal WWD torch to the next generation. In reporting an 8.9 percent increase in net prof- its for 2011, the world’s largest beauty company said TUESDAY, FEBRUARY 14, 2012 Q $3.00 Q WOMEN’S WEAR DAILY Monday that the 89-year-old Bettencourt would step down from the board and her seat would be taken by her 25-year-old grandson, Jean-Victor Meyers. The move will be submitted for approval at the next annu- al general meeting of shareholders. The Bettencourt family is the largest single shareholder in L’Oréal, with a 31 percent stake. Twenty-five-year-old Meyers is a son of Bettencourt’s daughter, Françoise Bettencourt Meyers, and also Bettencourt’s legal guardian. He studied economics and management in France and the U.S. Over the past two years, Jean-Victor Meyers spent some months at L’Oréal. He’s also been a mem- ber of the supervisory board of the Bettencourt fam- ily’s holding company, Téthys, since January 2011. Jean-Victor Meyers joining L’Oréal’s board marks another chapter in what has been a long-running saga of the Bettencourts involving vast wealth, family feuds, lawsuits and political scandal. The announce- ment about her leaving the board followed numer- ous lawsuits concerning Bettencourt’s mental acuity. Most recently, on Jan. 18, a French court turned down Bettencourt’s request to have her guardianship status changed to “reinforced guardianship,” which is less restrictive. She had appealed a decision made in mid- October by the guardianship judge of Courbevoie, France, who had placed her under the protection of Meyers. At the time, Bettencourt’s holdings were put under his guardianship, plus that of her daughter and other grandson, Nicolas Meyers. That legal decision had been long in the making, coming after numerous requests for guardianship protection made by Bettencourt Meyers during the Bettencourt affair, which began in December 2007 SEE PAGE 19 Bloomberg’s Action Plan Dapper By ROSEMARY FEITELBERG WITH FASHION WEEK in full swing uptown and downtown, Diane von Furstenberg, Mayor Michael Bloomberg and U.S. Rep. Carolyn Maloney (D., N.Y.) met in the heart of the Garment Center Monday morn- Donna ing to spell out the industry’s impact on New York City and new initiatives geared to fostering future generations of designers. The mayor was quick to point out that New York’s Focusing on tailoring galore, Donna Karan biannual runway shows is expected to generate a incorporated pinstripes, brazen shoulders and record-breaking $865 million in economic develop- her signature asymmetric maneuvers into her fall ment for the city this year. In addition, New York’s 500 fashion shows attract about 232,000 visitors each collection. It was chic, urban and recalled the year. City officials are banking on employment in New high-glam attitude that put Karan on the map in York’s retail market, the largest in the U.S., to climb the first place. For more from New York Fashion 17 percent by 2025. Part pep rally, part state-of-the-industry address, Week, see pages 6 to 10. Monday’s gathering zeroed in on five tactics to help build the industry through his administration’s Fashion NYC 2020 program: Q Introducing a free mini M.B.A.-type program for 35 participants through a partnership with the Fashion Institute of Technology. Q Lead a search for New York City’s most innovative retailer that will result in free temporary retail space, marketing and public relations. Q Create a fund to provide loans to emerging design- ers provided they use local manufacturers to produce their collections. Q Establish a fellowship program for fashion man- agement, and reach out to more interns and college PHOTO BY GEORGE CHINSEE SEE PAGE 18 2 WWD TUESDAY, FEBRUARY 14, 2012 WWD.COM Burch Stays Private as Wall Street Beckons if the Chinese opportunity becomes too tempting By EVAN CLARK or the company decides it wants to ramp up its busi- the Briefing Box ness in the region quickly, it will have to spend some in Today’s WWd ToRy BuRCh wiLL take her bow on the runway serious bucks to do so. today, but will she ever ring the bell at the New york “if you really want to have a scalable business and Stock Exchange? have more than two stores in China, which is a market Liliane Bettencourt, daughter of L’Oréal’s founder, has There would be big bucks in an initial public of- that can probably absorb a lot of Tory Burch, you need ended her storied and recently controversial tenure on the fering for Burch and her investors. Michael Kors per- quite significant capital,” said hana Ben-Shabat, a part- company’s board. PAGE 1 sonally raised $117 million when his firm went public ner in A.T. Kearney’s retail practice. “in a brand like this, in December and the stock has jumped 68 percent to the future is really emerging markets. if she’s not happy $33.61 so far, giving the growing company — which with the current level of performance in her core mar- Mayor Michael Bloomberg revealed new reports its results today — a market capitalization of ket, it’s almost inevitable that she has to go to other mar- initiatives geared to fostering future generations $6.41 billion. That’s $860 million more than the market kets. it’s difficult to drive high-single-digit or double-digit of designers in New York City at the CFDA Fashion capitalization of PVh Corp., which owns Calvin Klein growth in the united States. it’s just not going to happen.” Incubator on Monday. PAGE 1 and Tommy hilfiger and a host of other businesses. Ben-Shabat said the company might also need to is Tory Burch in that league? There’s one way for raise money if it wants to expand into other categories. her to find out — and no one is using the “ToRy” ticker. All that untapped potential for expansion has “we are very happy with the way the business is wall Street salivating. Experts weigh the pros and cons of whether Tory Burch growing under the present private ownership struc- “it would be fantastic,” said Paul Lejuez, an equity should go for an initial public offering. PAGE 2 ture,” Burch, who is her firm’s chief executive offi- analyst at Nomura Securities, of a Tory Burch iPo. cer, told wwD. “As of now, we have “There’s a thirst in the market for no intention of an iPo.” growth stories right now and particu- The primary focus on the opening day of the it’s that tease — the “As of now…” larly in the accessories category, which MAGIC and Project trade shows was the changes going — and the company’s growth poten- seems to be performing very well. you on at J.C. Penney and how they will affect the rest of tial that has wall Street so interested. look at a Kors, or even if you look at the the industry. PAGE 4 Still, an iPo is a doubled-edged performance of a Coach lately, it’s been sword. Public companies are under a just remarkable.” microscope. They face a treadmill of Lejuez said the investment calcu- President Obama proposed $26 million in funding for quarterly updates to wall Street and lus for Tory Burch and Kors is similar a new Trade Enforcement Center focused on cracking are pressured relentlessly to keep and the window of opportunity for the down on unfair trade practices. PAGE 4 growing or to start paying out fat divi- firm to make an offering is wide open. dends. And when the primary brand Koch “it’s about growth,” he said. “it’s eventually tops out, public fashion about being in the right categories, sell- Italian fabric and yarn makers are focused on exporting companies often start to take on other Jonah ing the right demographics and it’s about outside of the European Union to countries with more Tor y by businesses to fuel growth, which can momentum. if Tory Burch has those stable or growing economies. PAGE 12 lead to ungainly portfolios of labels Burch three things, which i assume they do, the that only sometimes work together. Photo window’s open and i don’t see it closing.” “you’re under an enormous amount of scrutiny as a The glitz of fashion also doesn’t hurt. “it’s prob- public company and it’s very difficult to constantly please ably easier to tell a Michael Kors or a Tory Burch type Onward Kashiyama is plotting the relaunch of its ICB wall Street when you’re trying to run a fashion business,” story to wall Street because they know the brand, be- label with Prabal Gurung at the design helm. PAGE 18 said Marc Federbush, partner in charge of the apparel cause they shop the brand,” said Lejuez. and textile services group at the accounting firm Anchin, The value of Tory Burch the company was Block & Anchin. “it’s a fickle industry. you’re only as good brought to the fore when Barclays Capital was hired Diesel Black Gold as your last season. you can be out of fashion pretty quick to sell off the portion of the company still held by today will open and wall Street doesn’t always understand that.” Chris Burch, the designer’s ex-husband who remains its first retail Even so, the benefits can be pretty sweet.