Daily Edition march 30, 2018 1

Finding Its Footing Second Act Gaining Strength A refocused K-Swiss is Miguel Adrover preps Gyms get ever building momentum. an art exhibit far from more fashionable. Page 4 fashion’s bright lights. Page 12 Page 18 Fashion. Beauty. Business.

fashion EXCLUSIVE: Ackermann Exits ● The designer’s surprise departure has kindled speculation that could take on the role.

By Joelle Diderich — Berluti has parted ways with its creative director after just three seasons, marking the latest high-profile change in men’s wear at par- ent company LVMH Moët , WWD has learned exclusively. , chief executive officer of Berluti, paid tribute to the designer in a statement about the split. “Haider has been at the core of the evo- lution of Berluti’s collections and image these past few seasons. I want to thank him for everything he has accomplished since his arrival. His feel for materials, colors, and his wonderful shows will always be linked to the history of the house,” he said. Continued on page 14

business Amazon, Walmart Expand in Fashion ● Both mass players are taking a broader look at the category and moving up the value chain.

By Evan Clark and Samantha Conti with contributions from Luisa Zargani and Melissa Drier

In the Amazon versus Walmart Inc. bat- tle for consumer domination, both sides have learned they can’t rule the world with sweatpants and T-shirts. The mass giants are moving up the fash- ion ladder and in their own ways, building infrastructure and making connections that could help them move higher. Amazon has been quietly courting the top European luxury brands and retailers, testing to see who’s willing to collaborate When Worlds Collide and offering its vast store of data to target customers online. An Amazon spokes- The fitness, wellness and beauty sectors are cross-pollinating woman said, “While I can’t comment on in a big way, with trainers, gyms and brands launching a slew of products rumor or speculation, what I can tell you is that we sell an incredible breadth of prod- to cater to consumers before, after and even during workouts. uct — from small, burgeoning designers to For more on the trend, see pages 6 to 13. well-known brands — and are constantly expanding our selection for our tens of

hristian D raghici C hristian by photograph G loves Continued on page 5 12 march 30, 2018

fashion Gyms, Fitness Studios Muscle Into Firmer Footing at Retail ● With health and wellness Peloton showroom at hot, centers are wasting the Mall at Short Hills. no time firming up and fashioning a new retail story.

By Kari Hamanaka Gyms have really whipped themselves into shape when it comes to perception in recent years of what a fitness center can be. They’re the new darling of anchor ten- ants at some malls, a way of life in many parts of the world and they’re increasingly becoming retailers as business models mature and diversify over time. Retail outposts found within gym chains and boutique fitness centers are no longer last-resort pit stops to nab a forgotten bottle of water or sweat rag. Gyms are pushing forth with far more diverse busi- nesses, bolstered by consumers’ lack of time and society’s acceptance of leggings as perfectly valid for public consumption. “[With] the shift in terms of culturally how people spend their money today, health and wellness has become the new status symbol,” said Equinox vice president of retail Annie Walters. “It’s not so much about what Gucci or Chanel bag you’re carrying.” seeing product. Many people don’t even Instead, the executive said, by way of go to department stores now. They order example, it’s now about what up-and-com- online. But if they’re going to yoga any- ing fitness brand one is wearing, and ways, all of a sudden that becomes the Walters would know as she sits atop an new format for brand exposure.” interesting perch, having joined the luxury Hot 8 is small relative to some chains fitness chain about six months ago from with six locations, but its owner is think- Saks Fifth Avenue. Before her decade ing big and is set to launch an online shop there, she also clocked time at Bergdorf this year that will work in tandem with the Goodman and Neiman Marcus and has physical studios and Instagram. The com- seen the shift in the industry. pany’s also seen growth in the past year She’s been putting her skills to use, with expansion into wellness products helping Equinox retail — ranging anywhere such as protein powders, topical creams, from 250 square feet to more than 1,000 beauty or anything else consumers with square feet — with a major reshaping that’s discretionary income are buying. called for elevated assortments, increased “Any lifestyle community is a luxury casual brands into the assortment, person- community,” Sasser said. “If someone is alized shopping experiences and playing able to spend $200 a month on a mem- up a fashionable point of view. It’s about bership, maybe they spend on four or helping guests with their wardrobes rather five pairs of yoga pants a month. All of a sudden you are in an elevated, luxury than a space for what Walters dubbed Inside one of “forgettables” — those water bottles, Hot 8 Yoga’s community.” towels or other quick-hit items often left at studios. The Bar Method’s also seen success with home or the office necessary for a work- the addition of the nutrition category, said out. With most of the New York-headquar- the San Francisco firm’s chief executive tered company’s retail business hovering officer Jay DeCoons. That’s meant exper- around 55 to 60 percent women’s, Walters imenting with companies such as Daily thinks there’s plenty of room for the busi- Harvest, a frozen meal delivery service ness to grow with men’s. focused on unprocessed, unrefined She’s not the only one hailing from tra- options. The ceo pointed out compa- ditional retail and lending her expertise to nies in the fitness space whose retail is the burgeoning gym retail segment. accounting for 15 to 20 percent of overall Laurie Sasser, a consultant for the sales is doing well. The Bar Method, he six-studio Los Angeles area boutique chain said, is still under 10 percent and hasn’t Hot 8 Yoga, handles the retail partnerships maxed out the potential to grow retail’s for Hot 8 and also works on behalf of share of the revenue pie. other fitness studios in need of some help “The ath-leisure trend is real and sus- building out their stores. In Sasser’s past tainable in my mind,” DeCoons said, add- life, she worked in the couture space at ing he’s seeing more and more members Neiman Marcus Beverly Hills. wanting shorter classes under an hour as “The same clients who are walking into fitness routines continue to be the norm Neimans down the street and buying a within their day, calling for garments to do $1,000 dress or a look from me, they’re double duty across day parts. walking into hot yoga studios, a book club “I even look at the trends around the or another lifestyle community,” Sasser work at home — the WeWorks of the said. “That’s what’s different nowadays world. It’s a lot less formal and structured, versus 10 years ago. People are spending and I don’t think it’s going to go back,” much less time in department stores and DeCoons said. they are buying in their smaller lifestyle The Bar As that continues to be the norm, shop- communities. Hot 8 Yoga might be the Method in pers are becoming less interested in pieces only place people walk into where they’re Dallas. Continued on page 13 march 30, 2018 13

Continued from page 12 people, they all had been in business for a year or two, it was just a really positive with emblazoned logos. Instead, they’re environment to be in.” demanding more curated, seasonal collec- Studios notching retail growth are now tions, DeCoons said. turning to brands such as Culver City, “It’s not about smacking The Bar Calif.-based Beyond Yoga — currently Method on a cheap product,” he said. distributed in more than 2,000 doors — to “They want quality and they’re willing to help them in a few ways. Wahler noted pay for quality.” she’s seeing greater interest in brands able Los Angeles-based Yoga Works Inc., to offer the “third-layer” piece of an outfit which went public in August, followed by that can be thrown on over workout garb an acquisition streak of smaller studios, to take the wearer from studio to street. has taken its retail strategy a step further The ceo also said smaller studios now acting as a purveyor of sorts for new work closely with her sales teams, looking brands across categories throughout its 66 to them for guidance on curating the right studios. mix for individual doors that take into “We definitely feel that there is an account factors such as the local customer interest in retail spaces for something and what nearby competitors may be other than just convenience,” said Megan selling. Watumull, Yoga Works director of retail. “The people who have been in it for a Yoga Works, as part of its retail strategy, while are more savvy, but there’s a lot of cycles in pop-up shops featuring local newcomers,” Wahler said. artists, running the gamut from jewelry to Other companies, she added, now have journals. A look from corporate buyers who are putting together “It’s really an opportunity for some- activewear collections to help streamline the buy- body who is local or hyper-local to brand Shape. ing process for individual franchisees if present their product to consumers who they’re in need of some help. are interested in furthering their yogi ‘I might forget a sports bra’ or ‘I might happening in these gyms and studios Immediates, as in the broader apparel lifestyle,” Watumull said. “For us, it gives forget my tank.’ Now it’s actually a retail because the workouts are getting more industry, continue to gain importance the student a chance to have a one-on- destination.” creative, from kettle ball to barre classes within ath-leisure. Brands who are nimble one experience with maybe a designer For Shape, which is distributed in to yoga and spin classes that feel like a will have the leg up. or a jewelry maker. It gives that person boutiques all the way up to larger players club,” Swarth said. “Retail is changing and consumers are that face-to-face exposure. It’s not just a such as Peloton and Equinox, the spe- Swarth’s eight-year-old, Venice, Calif.- changing so quickly these days, it’s really product on a shelf.” cialty business in the last year went from based business is sold in some 2,000 yoga hard to keep abreast of where they’re While retail at Yoga Works is expos- roughly 20 partners to around 100. The studios and workout facilities around the going,” said Australia-based Lorna Jane ing its members to new brands, New performance-based brand was launched world in addition to majors such as Nord- chief operations officer Anna Fowler. York-based Peloton launched into retail by the fitness magazine of the same name strom and Neiman Marcus. The label’s “Where we feel the industry is moving at the end of 2013 to introduce its own via a licensing deal with Apparel Bridge made a name for itself with its bright toward and where we’re seeing great suc- brand to the uninitiated. The company LLC. colorways and cheery patterns, ranging cess is customers are wanting to buy two fancies itself a fitness, technology and “People go there for things they don’t from peacock and leopard to patchwork months out to immediately.” media hybrid. It’s a mouthful and Peloton find typically in department stores,” graphic prints all made in Los Angeles. It’s Product being bought and paid for six needed a physical outpost to show what Mahtani said. “It’s curated.” merchandise from brands such as Onzie months out still happens but less and less that is, via its boutiquelike showrooms Ubiquity breeds awareness, which and other fashion-forward players that so, Fowler said. where apparel and accessories are paired breeds education and the ath-leisure con- will help move the needle for what gym “If you think about smaller boutiques, with the actual workout equipment. sumer’s gotten smarter about materials retail looks like in the future. Standards they have a smaller portion of the cus- “By having the apparel there and having and pricing. will evolve, but this new breed of retailer tomer base, but that customer is repeat- a really unique type offering, it was a way “In the past, whenever it was a new, would do well to remember why it’s seeing edly coming back. They’re looking at not to attract people who may have normally unique fashionable brand, it commanded success in the first place, which is the buying debt; they’re looking at buying just passed by the store,” said Peloton a little bit of a higher price point,” Mahtani community of fitness devotees, Swarth more regularly and obviously showing chief revenue officer Tim Shannehan. “It’s said. “The consumer now is so savvy and said. new styles more frequently.” still an attraction for people coming in they know when it’s a good quality piece “What needs to be heard is the brand Lorna Jane sees the bulk of its wholesale who may not know much about Peloton and what they should be paying for it. authenticity that needs to speak in this business coming from gyms and boutique and are looking for fitness apparel, but the That’s one thing a lot of the gyms, bou- category. It’s different than what brands studios with strong growth in markets, majority of buyers looking at apparel are tiques and spas across the board are really can speak in denim or ready-to-wear,” she such as the U.S., China and Canada. The Peloton bike users. They have an affiliation honing in on is that price value. I don’t said. “There really is this thread of authen- company’s producing anywhere from 70 with the brand.” think the consumers are more price-sen- ticity that needs to come forward with not to 100 styles each month with the option Peloton’s under way with an aggressive sitive or looking for a deal. It’s more along only the performance of the product, but for buyers to do long lead buys or just-in- expansion plan for its showrooms, with at the lines of they’re shopping in the tra- what’s behind the brand.” time via a Lorna Jane web site. least 20 set to open over the course of the ditional way and knowing whether those Beyond Yoga chief executive and “The world of dot-com is about chang- next 12 to 18 months in markets such as updates are worth the price. People are cofounder Michelle Wahler was recently at ing products; it’s not about having the Ohio, along with existing, heavily popu- going to shop around. People know what a conference for one of the apparel com- same products all the time,” Fowler said. lated places such as Los Angeles and New things cost these days. Activewear’s so pany’s fitness partners. It was a gathering Online ordering, data analytics, diversi- York. These are spaces that ideally are saturated it’s a little bit easier to do that.” of the studio’s franchisees and if there are fying assortments and more sophisticated around 1,500 to 2,000 square feet. The That’s made style and exclusivity that challenges at retail, Wahler heard little of merchandising are all flying across the company also in the past year began dab- much more important in brands’ collec- them while at the conference. gym retail landscape, and most in the bling with a 300-square-foot, micro-store tions in a shift largely mirroring where “It was amazing how many of the peo- thick of it would agree, the runway for box located in six malls. workouts are going generally, said Onzie ple who just bought franchises were doing further refinement is long. Anyone who “We have a very rapid and passionate Inc. president and owner Kimberly so well and they were blowing out their scoffed at the idea of ath-leisure being a member community and our members are Swarth. retail,” the ceo said. “I keep hearing the fad may want to adjust their perspective. craving apparel and products that allow “It parallels that spirit of what’s really retail market is tough, but talking to these Just ask companies such as the online lux- them to express their excitement for the ury activewear boutique Carbon38, which brand so the boutique has exploded this just received a $15 million investment from year in a great way and our offering has Foot Locker, or the venture-backed active evolved,” Shannehan said. e-tailer Bandier and its recently launched That’s meant a core apparel line of private label sold exclusively through Net- sports bras, shirts and other basics, a-porter. The avenues for growth through- fortified with seasonal offerings of Pelo- out the segment are diverse as strategies ton-branded gear sometimes done in continue to be sharpened. collaboration with brands or instructors “It’s just starting. This is the natural who have strong followings of their own. progression of a market that’s been here Brands are keeping tabs of all this for so many years,” Hot 8 Yoga’s Sasser change and responding accordingly. said. “You’ve had so many brands inter- Gyms and studios are the largest and ested in the activewear and ath-leisure fastest-growing category of retail buyers space so there was an influx of brands attending Emerald Expositions’ Active Col- wanting to get in. That’s where we’re at lective trade show, according to the show’s now. In a couple of years, people will not buyer relations manager, Rachel Nobles. only have their stylist for when they’re “Our specialty gym boutique and going to the awards ceremony, but they’ll resort business is on fire,” said Shape have their yoga stylist. They’ll have their brand director Sheena Mahtani. “That’s a Brands like Pilates stylists. That is the way the indus- space that people are now actually going Onzie aim to be try is going just based on history. It always into and purchasing, whereas before it fashion-forward gets more complex. There’s always need might have been an afterthought and in their offerings. for further refinement.”