LONDON IN THE SPOTLIGHT/10 EMMY COVERAGE/4-5 Women’s Wear Daily • The Retailers’ Daily New spaper • September 17, 2007 • $2.00

WWDMONDAY ▲ Katherine Heigl Accessories/Innerwear/Legwear in Zac Posen.

Acid Test Pink and green. The combination is a preppy staple, but Michael Kors has really revved it up for spring in a mix of neon shades, topped with a supersize sun hat. For more bright ideas, see pages 6 and 7.

Little Diversity in Fashion: African-Americans Bemoan Their Absence in Industry

By Rosemary Feitelberg s there discrimination in the fashion Ibusiness? “You bet,” was the consensus at a panel discussion addressing the dearth of black models in fashion, with Naomi Campbell, Iman, Liya Kebede and Bethann Hardison leading the charge. The situation was starkly evident during last week’s New York shows and some say it’s worse in Europe, where most black models don’t even bother to try to book shows in Milan. And the problem isn’t only in the modeling world; observers also pointed to the scarcity of black designers, See Absence, Page 12 KORS PHOTO BY GIOVANNI GIANNONI; HEIGL BY MATHEW IMAGING/FILMMAGIC MATHEW GIANNONI; HEIGL BY GIOVANNI PHOTO BY KORS 2 WWD, MONDAY, SEPTEMBER 17, 2007 WWD.COM Ballestrazzi to U.S. Armani Post By Amanda Kaiser executive offi cer of Armani’s U.S. operations. WWDMONDAY A company spokesman said Friday that Ryan Accessories/Innerwear/Legwear MILAN — Giorgio Armani SpA has tapped for- Berman’s replacement will be announced in mer Gianni Versace SpA executive Daniele “due course.” FASHION Ballestrazzi to be acting chief operating officer of “I am delighted to welcome Daniele its U.S. subsidiary Giorgio Armani Corp., effective Ballestrazzi to our company as we continue to The hedge fund and home mortgage news might be dismal, but the New immediately. build one of the industry’s most experienced man- 6 York runways ran counter with fl uid dresses in cheerful hues. Ballestrazzi replaces Matteo Mascazzini, who agement teams,” Giorgio Armani, president and has left the company and returned to his native ceo, said in a statement. Italy to become controller of the Gucci division at Ballestrazzi, 42, has spent the last 15 years at GENERAL Gucci Group. Mascazzini joined Armani in March Versace, most recently as the company’s general The scarcity of black designers, photographers and executives in the of last year. manager and chief fi nancial offi cer. Prior to that, 1 fashion industry is seen by many as discriminatory. The announcement comes in the wake of he worked at Andersen Consulting and Italian ma- Bridget Ryan Berman’s resignation as chief chinery company Mandelli Group. Unexpected costs and logistical snags hit Jil Sander AG’s fi rst-half 2 results, but executives stressed the company is close to breaking even. Gant’s Fifth Avenue fl agship reopens today with an extra fl oor, a spiral Jil Sander’s First-Half Loss Hits $6.3M 3 staircase and museum-like area that pays homage to the Guggenheim. Classifi ed Advertisements...... 26-27 and its owner, Change Capital By Amanda Kaiser A look from To e-mail reporters and editors at WWD, the address is fi rstname. Partners. As reported, Jil Jil Sander. MILAN — Unexpected costs and Sander is curbing some expen- [email protected], using the individual’s name. logistical snags hit Jil Sander ditures, including on advertis- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT AG’s first-half results, but ex- ing, to boost its margins. ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. ecutives stressed the company Jil Sander actually broke VOLUME 194, NO. 59. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January and November, two additional issues in March, May, June, August and December, and three is close to breaking even. even on the earnings before in- additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance Jil Sander’s net loss for the terest, taxes, depreciation and Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by six months ended July 31 wid- amortization level in the fi rst Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human ened to about 4.7 million euros, half of the year compared with Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail or $6.3 million at average ex- a slight loss the year before of Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return change rates, from 3.9 million 300,000 euros, or $372,000. undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA euros, or $4.8 million, a year ear- Specifi cally, Jil Sander said 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE lier. Sales for the period fell 7.7 sales of the fall-winter collec- INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit percent to 60.7 million euros, or tion are currently up 10 percent www.subnow.com/wd. Please give both new and old addresses 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 $81.3 million, on a combination on the year while orders for the correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, of factors, including unfavor- spring-summer 2008 show a “sig- GIANNONI GIOVANNI PHOTO BY please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other able exchange rates and delayed nifi cant increase.” The company Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list store openings. Jil Sander’s fi s- said its resort collection, due to arduous hunt for proper loca- available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA cal year ends Jan. 31. be delivered next month, has tions is essential for long-term 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, Earlier this summer, Jil doubled in sales volume. development of the brand, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, Sander warned it might miss its As for the first half of the which is enjoying critical ac- BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR breakeven target this year as year, a combination of unex- claim under creative director CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR it incurred unexpected costs. pected costs and logistical snags Raf Simons. DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY But if the company does in fact weighed down corporate ac- Mueller said the Avenue A SELF-ADDRESSED STAMPED ENVELOPE. post a loss, it won’t be by much, counts. Delays related to the Montaigne store, about half the chief executive Gian Giacomo spring relocation of the brand’s size of the original fl agship next MONDAY: London Fashion Week continues (through Ferraris and chief fi nancial of- Paris fl agship and the opening door, is registering about 15 to Thursday). fi cer Armin Mueller told WWD. of a Frankfurt store bit into top- 20 percent more sales than its Texworld, Paris (through Thursday). Meanwhile, the company plans line growth, Mueller said. Jil much larger predecessor. “This Moda Manhattan, New York (continues through to make up some ground during Sander’s fi rst-half retail sales store proves 100 percent that Tuesday). the fall-winter season and post shed 2.1 percent to 21.8 million the strategy of Jil Sander is ab- full-year sales growth of about euros, or $29.2 million. solutely right,” Mueller said. TUESDAY: Fashion Coterie, Clear and The Mezzanine, 4 percent. The fact the brand has yet to Jil Sander is required to New York (through Thursday). “This is a signal that the fi nd suitable locations for new continue publishing financial Première Vision, Expofi l, Mod’Amont Paris, Indigo restructuring is really produc- London and New York stores results as it is still technically Mode and Le Cuir à Paris, Paris (through Friday). ing the effect that we wanted,” will affect second-half retail a publicly traded company in The U.S. Labor Department releases the Producer Ferraris said, reiterating the sales, but the company is still Germany. The company is en- Price Index for August. importance of rigid financial forecasting growth for the full gaged in a costly legal battle discipline at both Jil Sander year. Mueller stressed that the with a minority investor that has WEDNESDAY: The Labor Department releases the declined to tender a small quan- Consumer Price Index for August. tity of shares in the fi rm. The company has several THURSDAY: WWD Branding Leadership Forum, New projects in the pipeline, in- Yo r k . cluding the November launch Mipel, Milan (through Sept. 23). of Scent 79, a fragrance with a Nike Inc. reports fi rst-quarter sales and earnings.

name referencing the year of COMING THIS WEEK the debut of the house’s first SATURDAY: Milan Fashion Week (through Sept. 29). perfume. Jil Sander is also pre- paring to reveal a new licensing deal for eyewear, presumably with Luxottica Group SpA or Safilo Group SpA, which will boost royalty income signifi cant- In Brief ly for the house. Ferraris said he thinks the ● CFDA PLUS D&A: The Council of Fashion Designers of Jil Sander brand has plenty of America has established a new initiative with the D&A trade untapped potential in areas like show to give two CFDA members a booth at D&A each season. accessories and sportswear. To Twinkle Jewels and Gemma Kahng will be the first to reap the wit, the company is planning rewards of this ongoing partnership. Each will show at D&A’s to launch a line of sneakers. upcoming events in New York and Los Angeles. CFDA execu- Founding designer Jil Sander fa- tive director Steven Kolb said, “This is immensely valuable as mously collaborated with Puma these CFDA members grow their businesses and work to in- on such an initiative years ago, crease accounts.” The New York show at the Starrett-Lehigh but this time the company plans Building and the Chelsea Art Museum ends today. Twinkle to make the shoes in-house. Jewels and Gemma Kahng will also have a presence at D&A’s These new product catego- upcoming event in Los Angeles. ries, along with Jil Sander’s plans to move into e-commerce Î next year, are aimed at broaden- ing the consumer base for the brand, Ferraris said, adding the Corrections brand might consider a second- “The Ice Cream Soup” truck documentary written about in a ary line at some point but it’s Fashion Scoop on page 12, Wednesday, was commissioned by Andy not on the table at the moment. Spade and shot by Josh Safdie. This was incorrect in the item. “It’s not a priority. Our pri- ● ● ● ority is to develop and extend A slip on page 47 of the September issue of WWD Beauty Biz was pro- our [product] categories,” vided by Flying A NYC. This information was inadvertently omitted. Ferraris said. WWD, MONDAY, SEPTEMBER 17, 2007 3 WWD.COM Gant Flagship Reopens on Fifth Ave.

By Whitney Beckett Designed by Annabelle Selldorf of Hunter Douglas Selldorf Architects, the four-story, 6,600- translucent fabric NEW YORK — After a four-month hiatus, square-foot store is the fi rst U.S. store to lit from within. Gant’s global flagship at 645 Fifth Avenue showcase Gant’s full offerings. “We need- Metal and non- reopens today. ed to create a space that communicated a shiny glass are The renovated space added 2,000 certain level of sophistication and qual- used throughout square feet, including an additional ity,” Selldorf said in a statement. “Our the store, as well, floor, and a spiral staircase and mu- challenge was to fi gure out how to show- as in the floor- seum-like area that pays homage to the case such an iconic brand in a renewed to-ceiling open Guggenheim. light, to allow customers to rediscover an shelving system Gant has occupied its Fifth Avenue lo- American classic.” that “feels like a cale for almost a decade, but it was built The store sits between Versace and bohemian library,” as a men’s store that “had essentially H.Stern. “Being on Fifth Avenue, we want- said Hoffman. stuck women’s in four years ago,” accord- ed to refl ect our quality but still be friend- But the heart of ing to Ari Hoffman, president and chief ly and inviting,” Hoffman said. “From the the design is the executive offi cer of Gant USA Corp. The outside, the challenge was that we are “egg” — a four- new space still refl ects that three-fourths part of the Olympic Towers and people story, curved, all- of Gant’s business is men’s, with the entire would skip us over, so how could we stand white staircase, main fl oor dedicated to men’s wear, but out with the same glass windows?” made of Venetian women’s wear now has the top fl oor (along Now the windows are filled with plaster and white with a children’s section). The women’s blue between the steel lines, like the Corian. Inside the collections on the top fl oor include the “preppy New England banker’s Oxford “egg,” the mezza- preppy GNH line and the sophisticated blue-striped shirt,” said Hoffman. That nine is devoted to a retrospective gallery Here and above: The Elliot Gant collection, plus the Rugger blue is repeated in spots inside, and the of the brand, beginning with 1949 when white spiral staircase contemporary label in the new sublevel French sandstone fl oors imitate chino Gant began as a private label shirt manu- evokes the Guggenheim. concept shop is in both genders. pants, while the ceilings are clothed in facturer. Scott Hill, Gant’s visual concepts di- rector, built four dioramas on the mez- zanine with “tongue-in-cheek museum MITRA ROBERT PHOTOS BY presentation” featuring mannequins in vintage clothing and montages of Gant period advertising in the back- ground: “Morning in America” for the Fifties, “Endless Summer of Love” for the Sixties, “Boogie Fever” for the Seventies and “Circus of Ambition” for the Eighties. “We have a truly authen- tic history, and we want to showcase it,” Hill said. Gant is now established in 73 coun- tries and operates more than 300 Gant stores worldwide. On Thursday evening, Gant will host a “Patterns of Green” environmental guest- lecture series, featuring Laurie David The top fl oor of the Gant fl agship is and benefi ting StopGlobalWarming.org, dedicated to women’s and children’s. to fete the redesigned fl agship. Robert J. Wichser to Oversee Yucaipa’s Fashion Portfolio By David Lipke for his position is found. He and company founder is listed as the 117th richest American in Forbes. “As Sean “Diddy” Combs will work with executive search we continue to grow our apparel and luxury brand NEW YORK — Robert J. Wichser, president and chief fi rm Kirk Palmer & Assoc. to fi ll the position. investments, I look forward to the opportunities and executive officer of Sean John, has been named a prin- “Bob has done a wonderful job since he joined Sean invaluable experience he will bring to us. We continue cipal at The Yucaipa Cos. LLC, the private equity firm John a little over two years ago,” said Combs in a state- to support our partners and investment in Sean John, that holds a stake in the urban fashion brand. ment. “Although we will miss the day-to-day contact and believe this promotion will benefi t Sean John as An offi cial announcement is expected today. with him, Bob will continue to be extremely involved well as our other investments.” In his new position, Wichser will continue to over- in strategic initiatives that will help Sean John grow Yucaipa acquired a minority stake in Sean John for see and monitor the growth strategies of Sean John as a premiere global brand.” an estimated $100 million in 2003. Combs remains the while adding oversight of Yucaipa’s other apparel Wichser, a 35-year veteran of the apparel industry, majority owner of the company, while the Sani family, an and luxury investments, which include ownership of was named president and ceo of Sean John in May early backer of the brand, also retains a minority share. English jeweler Garrard and stakes in London jeweler 2005, prior to which he was president and ceo of JA Founded in 1986, The Yucaipa Cos. made its name Stephen Webster, the specialty retailer Scoop and de- Apparel Corp. His earlier experience includes stints with a series of high-profi le acquisitions and sales of gro- signer label Zac Posen. Wichser will also explore ad- at Evan-Picone and Warnaco Group Inc. cery chains like Ralphs and Dominick’s. More recently, ditional investment opportunities in the fashion arena “We are fortunate to have an executive with Bob’s the fi rm has diversifi ed its investments into media and for Yucaipa. record of success move full-time to Yucaipa,” said Ron fashion. This past May, a company in Yucaipa’s portfolio Wichser, 57, will remain in his role at Sean John Burkle, the billionaire founder and managing direc- acquired 76 specialty magazine titles, including Motor likely through the end of this year until a replacement tor of the Los Angeles–based investment fi rm. Burkle Trend and Surfer, from Primedia Inc. August Apparel, Accessories Sales Slip 0.1% By Evan Clark seasonally adjusted 0.3 percent in August, but many econo- patch” now. mists expect a slowdown heading into the end of the year. “You can never bet against the American consum- WASHINGTON — August sales at apparel and accesso- And, excluding automobiles, purchases fell 0.4 percent last er,” he said. “[Their] confi dence can get dinged, but ries stores fell a seasonally adjusted 0.1 percent com- month. Sales for the three months ended Aug. 31 rose 0.6 the consumer just hasn’t tossed in the towel in over pared with July, and department stores reported a 0.2 percent compared with the preceding three months. a decade.” percent drop. Federal Reserve policy makers are set to meet Some of the weakness might also have to do with The results, covering all stores and released by the Tuesday to decide whether to lower the benchmark resets on the selling fl oors. Commerce Department Friday, offered a more down- interest rate. Pressure from Wall Street to drop the “The department stores had to make room for the beat take on the fashion consumer than same-store rate has been building because of stock market tur- fall lines, so I think they heavily discounted merchan- sales for August, in which major retailers reported moil as a result of the subprime mortgage market dise,” Yamarone said. better-than-expected gains. crisis and the fi rst month of job losses in four years For now, consumers are being supported by solid However, the Commerce Department survey looked in August. Investors are worried that consumers will wage and income growth, said Brian Bethune, U.S. more favorable versus a year ago, with specialty stores curb spending. economist for Global Insight, in an analysis. up 6.4 percent to $19.1 billion in sales as department However, Richard Yamarone, chief economist at Argus Bethune said real consumer spending, which looks stores advanced 0.3 percent to $17.6 billion. Research Corp., predicted shoppers will be back for the to have expanded by 2.9 percent in the third quarter, Sales at all retail and food service establishments rose a holiday season even if they are going through a “soft will slow to 2.2 percent growth for the fourth quarter. 4 WWD, MONDAY, SEPTEMBER 17, 2007

Donna Karan dressed Minnie Driver, Kyra Sedgwick went for Anna Paquin and Walsh. They looked like Dairy Queens. And Oscar de la Renta, Carolina Herrera dressed Tina Fey and Vanessa Williams didn’t go the fi sh route, but her birds-of-a- Narciso Rodriguez once again dressed Julia Louis-Dreyfus. feather tiered dress by Kevan Hall was a miss, as was Hayden “He knows how to accentuate a woman’s positives and let go Panettiere’s Marc Bouwer number. of the other stuff,” Louis-Dreyfus said. Debra Messing also “She’s wearing a tent,” said Driver of Panettiere’s voluminous Gone Fishin’ made a repeat showing in black-and-white Ralph Lauren, while gown. “She’s 18 and she’s wearing a tent.” THE STARS PLAYED IT CLOSE TO THE VEST AT THE 59TH Ellen Pompeo relied on her friend Michael Kors for her navy In her defense, Panettiere said, “I’m wearing this because Annual Primetime Emmy Awards at the Shrine Auditorium in blue strapless number. “It’s beautiful and classic,” she said. it’s beautiful, and I can only wear this dress when I’m at the Los Angeles Sunday in skintight strapless sheaths in black, “American style.” age that I am.” What will she wear when she’s 19? white and electric brights, generally opting for a fi shtail siren As for the jewels, the recent string of engagements and Thank goodness some industry vets were around to show look. “I feel like a MILF in this dress,” said Rachel Griffi ths of nuptials meant actresses like Heigl, Kate Walsh, Eva Longoria the newbies how it’s done, as Sally Field did in geranium her body-hugging vintage Chanel. “I feel hot and sassy, and my and Christina Aguilera opted to show off their own sizable rocks red Valentino. “I’m wearing Valentino tonight because it’s husband’s loving it.” rather than borrow some hefty bling. beautiful,” she said, “and it’s a little foolish to wear it around American designers dominated the red carpet: Zac Posen Of course, there were some missteps — namely the the house.” scored with Best Supporting Actress winner Katherine Heigl, sideswept, short, tangled updos sported by Heidi Klum, — Marcy Medina

Katherine Heigl in Heidi Klum Julia Louis- Jaime Zac Posen and Ryan in Dior Dreyfus in Pressly Ryan and Company by John Narciso in St. John jewelry. Galliano Rodriguez Couture and and Chopard and Mouawad jewelry. H.Stern jewelry. jewelry.

Kyra Sedgwick in Oscar de la Renta and Lorraine Schwartz jewelry.

Glenn Close in Giorgio Armani Becki Newton in and Harry Winston J. Mendel and Neil jewelry. Lane jewelry. WWD, MONDAY, SEPTEMBER 17, 2007 5 WWD.COM

Debra Messing in Ralph Lauren and Cartier jewelry.

Sandra Oh in Bottega Veneta.

Mary- Louise Parker in Dolce & Gabbana and Harry Winston jewelry.

Ellen DeGeneres in Gucci

and Boucheron jewelry with DELLA Portia de Rossi in Azzaro.

Minnie Driver America Ferrera in in Donna Karan Christina Aguilera in Monique Lhuillier Ellen Pompeo in Tina Fey in Carolina and Bochic Valentino and Stephen and Lorraine Michael Kors and Herrera and Fred jewelry. Webster jewelry. Schwartz jewelry. Fred Leighton jewelry. Leighton jewelry. KLUM PHOTO BY JEFF VESPA/WIREIMAGE; CLOSE BY AP PHOTO/CHRIS CARLSON; NEWTONBY AP PHOTO/CHRIS PIZZELLO; ALL OTHERS BY DONATO SAR DONATO ALL OTHERS BY AP PHOTO/CHRIS PIZZELLO; AP PHOTO/CHRIS CARLSON; NEWTONBY BY CLOSE JEFF VESPA/WIREIMAGE; PHOTO BY KLUM 6 WWD, MONDAY, SEPTEMBER 17, 2007

Rebecca Taylor Adam Adam Lippes Poltock & Walsh

Chris Benz

Bright Future The hedge fund and home mortgage news might be dismal, but the New York runways certainly didn’t refl ect it. Instead, designers churned out fl uid dresses in cheerful, acid hues. WWD, MONDAY, SEPTEMBER 17, 2007 7 WWD.COM

BCBG Max Azria Diane von Furstenberg PHOTOS BY JOHN AQUINO, TALAYA CENTENO, STEVE EICHNER AND ROBERT MITRA STEVE EICHNER AND ROBERT CENTENO, TALAYA JOHN AQUINO, PHOTOS BY 8 WWD, MONDAY, SEPTEMBER 17, 2007 It’s the Little Things Accessories made a splash around town and on the runways during New York’s spring collections in one of the most dramatic seasons of late. — Roxanne Robinson-Escriout

An array at Anna Sui.

Lunch at Gwen’s little MaxAzria’s Tiffany’s. L.A.M.B. big fl ap.

Smooth sailing at Ports 1961. Lambertson Truex’s signature LT shelves.

Badgley Mischka brightens the day.

Well-shod at Derek Lam.

Donna Karan’s summer breeze.

Kara Ross lightens up. WWD, MONDAY, SEPTEMBER 17, 2007 9 WWD.COM

Rafe’s retro spring. Oscar de la Renta in full plume. Backstage at DKNY.

Feathers in command at Proenza Schouler. Lulu Guinness looks back.

Marc by Giuseppe Zanotti signs autographs. Marc Jacobs marches on.

Kate Spade’s got a basketful of bags.

3.1 Phillip Lim’s little brim. Anya Hindmarch’s future vision. Scarpe at the Italian Diana Broussard’s new space. Trade Commission.

A Dali-esque defi lé at Marc Jacobs. PHOTOS BY JOHN AQUINO, TALAYA CENTENO, GEORGE CHINSEE, STEVE EICHNER, KYLE ERICKSEN, GIOVANNI GIANNONI AND ROBERT MITRA GIANNONI AND ROBERT ERICKSEN, GIOVANNI KYLE GEORGE CHINSEE, STEVE EICHNER, CENTENO, TALAYA JOHN AQUINO, PHOTOS BY 10 WWD, MONDAY, SEPTEMBER 17, 2007 WWD.COM PPQ Fashion Scoops MAYFAIR MEMORIES: “There were days when I could barely Revving Up afford to shop in Mayfair!” said a nostalgic Diane von Furstenberg, Sporty shapes and bursts of tropical color light up London. who will open her second central London store today on Bruton Street in Mayfair. PPQ: This girl is no monochrome Von Furstenberg was referring maiden; she wants patterns that are PPQ to her student days at boarding bold and beautiful. Amy Molyneux and school in Oxfordshire, when she Percy Parker mixed up Tahitian, Aztec and her mates would hop the and tartan prints — and guess what? train and spend the day shopping It worked. A boxy green-and-white in London. “I love Mayfair — I striped cotton jacket had a jet-set vibe still do my shopping here,” she — especially when paired with a huge said during a walk-through of the black patent tote. There were dresses, 2,650 square foot store. too, including a form-fi tting, strapless The shop bears all of the purple tartan number; crocheted black designer’s trademarks: The small, cotton maxidresses, and drop-waisted round mirrors on the walls, the sundresses with pouffy skirts edged with Indian-inspired mirrored curtains gold chains. They’ll no doubt appeal to in the dressing rooms, the hot London glamour girls Peaches Geldof pink banquettes and the plush, and Agyness Deyn, who both walked in graphic rugs she’s designed with the show. The Rug Company. The store is the fi rst in Diane von Furstenberg Issa: This city siren has cast off her London to carry the full range and her new store. jersey print wrap and tieback dresses of DVF products, including her and hopped a fl ight to Ibiza. Daniella jewelry for H. Stern, Christian Louboutin Helayel was in a naughty mood, sending shoes, and her accessories collection. models out in bright red candy-striped The Mayfair store leads off a marathon caftans and devil-printed sweaters. But of European openings for von Furstenberg, there was also a dash LONDON who will christen stores in cities including of sugar here, too, with Louise Paris, Brussels, Madrid, Moscow and Hong sweet cotton biker Goldin spring ’08 Kong over the next few months. jackets, and swingy “It’s a lot of back and forth and a cotton tennis and golf lot of traveling,” said von Furstenberg, dresses. An Issa girl who served cocktails to guests including never fades into Jemima Khan, Naomi Campbell, Michael the crowd. So, for Roberts and Kinvara Balfour on Sunday those evenings at afternoon. “But opening stores is certainly Pacha — Ibiza’s a lot better than closing them.” legendary party pit — there MENKES FIRES BACK: Lest anyone think were sequin- Suzy Menkes’ sword is mightier than her embroidered Kinvara Balfour pen, the International Herald Tribune caftans and critic would like to clarify her comments cape dresses. about wanting to murder Marc Jacobs “with my bare hands,” after waiting two hours for his show Louise Goldin: to begin. Menkes talked to WWD Sunday about the Jacobs Goldin shifted out comment and other issues addressed in Thursday’s front-page of fall’s somber story headlined “Jacobs Blasts Back.” “I’m afraid my British Issa mood to show an sense of humor fell fl at,” Menkes said. “My remarks about accomplished murdering Marc Jacobs were meant as a joke, and probably collection a very bad one. What I actually did [that night] was to tear of Technicolor, apart a pizza with my bare hands, as my dinner with Stephanie Kandinsky-inspired Solomon of Bloomingdale’s — in memory of Kal Ruttenstein knit dresses, with — was totally screwed.” (Solomon is vice president of fashion artful combinations of direction at the store and the late Ruttenstein had been senior weaving techniques vice-president of fashion direction.) “I know what Kal would and fi bers. Dresses have said about the two-hour wait: ‘If the show is worth it, were microlength and body-conscious — although who cares?’” there was a racerback trapeze dress and a loose- Well, Menkes clearly did, and wrote a scathing review of fi tting, ruffl e-front number in there, too. Knit the show. On Sunday, she declined to comment on the review swimwear pieces were among the highlights, or Jacobs’ reaction to it. However, Menkes did weigh in on the despite being more poolside than practical. It was timing of the New York shows and the Jewish holiday. “I was clear Goldin was having a ball this season, layering Louise never called by, or spoke to, the CFDA at any time to discuss to her heart’s content like a kid with Colorforms and Goldin show dates and the Jewish holiday. I wish they had asked my draping those knits like a Madame Vionnet acolyte. opinion, because I think the New York shows were much too early and must have put a strain on all designers relying on European fabrics.” As for her Jewish faith, Menkes asked: “Am I For full coverage of fashion week, including reviews, complete collection visuals, really the only person in the fashion community who is involved Fashion Scoops and news, log on to wwd.com or wwd.com/fashionweek. in the holidays?”

Danielle Topshop Scutt Unique more from the shows Danielle Scutt: Scutt revisited her Eighties- waisted shorts. But ill-fi tting molded pastiche trailer-trash look, which was fun bustiers marred the breezy silhouettes. but more of a sequel than a fresh approach. Amanda Wakeley: A collection full of clean Topshop Unique: There was a mix of sexy, lines, which showed up in a cropped slouchy sportswear and Grecian-meets- cinnamon leather jacket, white jersey drop- Seventies beach bohemian, including a waisted dress and layered chiffon gowns in string of fl uttery maxigowns. white and dove gray.

Gavin Douglas: Some of Douglas’ silk Xterity: A girly collection fi lled with goddess gowns worked well, but the ruffl ed butterfl y- and scribble-print silk dresses minis and vampy dresses covered in giant and a poufy white ballgown with gold-zipper blue crystals and accessorized with heavy seams. gold chains struck a trashy note. Armand Basi: Markus Lupfer’s shirtdresses Bjork & McElligott: Kattis Bjork and Sophie with crisp, origami style folds were a hit, McElligott offered a tightly edited collection but the clownish, synthetic-looking pants Gavin Armand of structured silk minidresses and high- and raffi a tutu skirts fell fl at. Douglas Basi PHOTOS BY GIOVANNI GIANNONI AND TIM JENKINS GIOVANNI PHOTOS BY PUT YOUR PROPERTY IN FRONT OF THE RIGHT PLAYERS. WWDReal Estate Review

EXPANSION OPPORTUNITIES DEALS GROWTH

Issue Date: October 16 Space Close: September 27

™ For more information on advertising in WWD, contact Christine Guilfoyle, publisher, WWDStyle Starts Here at 212-630-4737, or your WWD representative. 12 WWD, MONDAY, SEPTEMBER 17, 2007 WWD.COM Absence of Blacks in Fashion Stirs Debate

Continued from page one doing it. But if I didn’t, there wouldn’t be any repre- photographers and executives in the fashion industry sentation [of black models at all].” as a major issue. Iman said she felt strongly about organizing a union By not including more blacks in their shows and for models, noting it’s the only huge industry that does ads, Ivan Bart, senior vice president of IMG Models, not have one. “Models don’t have a union. They don’t said designers and other fashion companies are miss- have a voice. No one speaks for them. Thank God I’m ing out on black women’s spending power. “By not hav- not a model anymore.” ing black women represented, those luxury brands are The fact that magazines are often run by people who saying they can’t afford it,” he said. are not from the U.S. and do not share its history is anoth- According to estimates by Targetmarketnews.com, er factor, Hardison said. But even if a model is a citizen of black women spend more than $20 billion on apparel a particular country, it doesn’t always make a difference. alone each year. Campbell claimed she has asked for a British Vogue cover, After more than two hours of spirited exchanges but was told a celebrity had to run instead. “I cannot even at Friday’s “The Lack of the Black Image in Fashion get a cover in my own country — not because I don’t sell Today,” the standing-room-only crowd at the Bryant — in fact I sell more than all of my white counterparts.” Park Hotel cheered at André Leon Talley’s sugges- Campbell last appeared on W’s cover in June tion to set up a meeting with the Council of Fashion 2007. Reached by phone last week, publicists at three of Designers of America to address the issue. That is American fashion magazines said the most recent expected to be scheduled after an Oct. 15 public dis- African-Americans on their covers were celebrities. cussion at the New York Public Library. Halle Berry was the most recent African-American Hardison, who has modeled, run her own modeling woman to appear on the cover of Harper’s Bazaar in agency and handled casting over the years, said, “In August 2004; Beyoncé graced Elle’s December 2006 the United States of America, this is the one industry cover; Vogue gave Jennifer Hudson the March cover, that still has the freedom to refer to people by their while Chanel Iman was featured along with nine non- color and reject them in their work.” black models on Vogue’s May cover. And she doesn’t see things improving anytime soon. “I Bill Blass’ former designer, Michael Vollbracht, came up in the Sixties. I feel it’s the worst it’s ever been.” recalled the days when booking Sheila Johnson, Pat More than anything, she hoped the discussion would Cleveland and other leading African-American beau- raise people’s awareness of the lack of black women on ties was a given. After returning to the industry after a the runways and in magazines, and ultimately encourage 15-year hiatus, he was those in power to make some changes. Singling out the Naomi Campbell surprised to learn late Richard Avedon, who refused to work with Harper’s at Friday’s panel. that was no longer Bazaar in the late Seventies after the magazine declined the case. Age is also to hire China Machado for his shoot, Hardison spurred an issue, Vollbracht on attendees to get industry insiders more involved. said. Cleveland’s Daniel Wolf, a Washington-based attorney who Models on the runway at Oscar de la Renta and Phillip Lim. return to the Blass specializes in civil and human rights, runway in 2004 was said the assumption being made in the Of the 101 shows and presen- not well-received, fashion industry is that it is legal to dis- tations posted on Style.com, 31 Vollbracht said. “I criminate — however false. Wolf recom- appear to have no black models. was told, ‘Don’t ever mended that modeling agencies hire the Most of those who did use black put that girl back on same percentage of black models that models opted for one or two. the runway.’” are in the entire modeling industry. However, Heatherette, Diane Campbell her- Kebede, the fi rst black model to be von Furstenberg, Charles Nolan, self will be casting hired by Estée Lauder, said, “It’s impor- Tracy Reese, Yigal Azrouël, Philip for 10 black models tant for the agencies to have more black Lim, Marc Jacobs, Jenni Kayne this week for a char- girls. But if the magazines and design- and Sue Stemp were among the ity fashion show ers are not going to hire them, that’s it designers who used more than Thursday. Her initial at the end of the day.” two. Heatherette, von Furstenberg request for black mod- Hardison insisted she is not moti- and Lam each opened their shows els fell on deaf ears. vated by legal action, stressing she only with a black model. In fact, von But at the symposium, wants further discussion — and eventu- Furstenberg closed her show she scoffed at reports ally change. with the opening girl, too, and the she is starting a mod- The lack of black designers and pho- The fi nal fi rst 10 models at Heatherette ap- eling agency, explain- tographers only adds to the problem, at- run at peared to be women of color. ing that she is working tendees said. Stephen Burrows and B. Donna Campbell, who fl ew in from with the Aga Khan to Michael are still on the scene, and more Karan. London for the occasion, recalled how develop an empowerment program for girls in Africa. recently Tracy Reese, Rachel Roy, Kimora Christy Turlington once told Dolce Reese raised another issue, noting designers don’t Lee Simmons, Patrick Robinson and Sean & Gabbana, “If you don’t use Naomi, want models who stand out on the runway. Her own “Diddy” Combs are among those non-Caucasian designers you don’t get us,” referring also to Linda Evangelista. casting calls for a mix of people, but the designer admit- making names for themselves in women’s fashion. Campbell said that’s how she also got into Helmut Lang, ted that “fi nding black models can be a challenge.” The lack of blacks in all aspects of fashion — from Prada and Versace. She used a different route with On occasion Reese’s booker has to request specifi c girls the runway to the executive suite — comes as there is French Vogue, appealing to Yves Saint Laurent, whose or the modeling agencies will not send them, Reese said. a noticeable increase in the number of Asian models, campaigns she had worked on for three years running. In addition, designers’ quest for a unifi ed look has left designers and executives in the industry. Among design- The magazine relented after the designer threatened to its mark on the industry. She said, “Personality has been so ers, for example, Thakoon Panichgul, Peter Som, Doo-Ri pull his advertising, which at the time was reportedly beaten out of fashion. That whole mood has to change.” Chung, Derek Lam, Phillip Lim, and Benjamin Cho have the publication’s largest advertiser. Hardison chalked up that lack of charisma on the all sprung onto the scene. Of course, designers like Vera “In my days of drinking and drugging, I’d be numb- runway to companies’ focus on building their brands. Wang, Yeohlee Teng, Anna Sui and Vivienne Tam had ing myself just going along with the calendar,” Campbell “Everything is about branding now. When something is already helped pave the way. said. “I was tired and fed up and I wasn’t sure why I was so commerce-driven, creativity is gone.”

Patti LaBelle, who performed after world exists with a real mixed group of Zang Toi’s fashion show, said, “When you people. What we as fashion designers Where Were the Black Models? go to a fashion show, you may see one show in magazines and on the runway is black model. It’s so sad that it’s so one- really important to young girls because he dominance of white models in girls of different shapes and ethnicities sided. I thought it was so admirable that it affects their self image,” she said. Tlast week’s New York fashion shows involves taking a risk and some are not Zang had so many types of models. When Maybe the borderless business is wasn’t lost on attendees. willing to take that risk.” I go to a fashion show, I want to see me.” being interpreted in unusual ways. Fashion photographer and “America’s More often than not, diverse casting After the Luca Luca show, Irina One executive at a major design Next Top Model” judge Nigel Barker was not the norm. Steven Kolb, execu- Pantaeva said, “I see an Asian girl here fi rm noted matter-of-factly, “We use all said, “Everyone is always talking about tive director of the Council of Fashion and there, but it seems like it has always types of girls: English, Irish, American, the weight issue, I think they should be Designers of America, said the variety of been that way. It seems like they can’t Swedish. There is always a mix.” talking about race.” ethnicities in Phillip Lim’s and Diane von have more than one or two, and it’s the Mark Badgley said, “It’s true I see many In the midst of taking in 15 shows, he Furstenberg’s shows jumped out at him. same with African-American models.” collections where it’s one certain look or said he was “somewhat surprised” by the “There were a lot of different types A greater mix seems rudimentary the girls are made up to look exactly the predominantly white casting at many of of ethnicities. Is it any different than “especially in New York City, the capital same. We like a little variety. I think it’s them. “I understand the idea it’s based on. in past seasons? That’s a hard thing to of the word, where all types of cultures nice to use some of the young girls, some It’s almost as though each girl is a clothes compare. But it has been fairly white. and classes come together. Fashion in of the more established girls. That’s always hanger. If each is seen as being the same, Theirs was more the exception than the New York City should naturally repre- what our shows are kind of about.” you’re not going to focus on the girl, you’re rule,” said Kolb. sent that,” she said. After modeling for Temperley, Rosa going to be focused on the clothes.” “Is that a reflection of the shows When casting for her show, Kai Milla Cha and others, Solange Wilvert said Often it’s the celebrity designers, or modeling? Is it intentional? I don’t said she looks for someone interesting she didn’t think the casting in Bryant not the ready-to-wear or couture ones, think so. The fashion industry has al- and who fi ts into her clothes. “I think Park was drastically different than in who are willing to use a wider range of ways been known to have a real mix of great models are of all ethnicities. We’re seasons past. “Maybe there aren’t many models, Barker said. “Showing different people,” added Kolb. living in the real world and the real black models,” she suggested. CAMPBELL PHOTO BY KYLE ERICKSEN; DE LA RENTA BY JOHN AQUINO; LIM BY GIOVANNI GIANNONI; KARAN BY THOMAS IANNACCONE BY GIANNONI; KARAN GIOVANNI JOHN AQUINO; LIM BY BY ERICKSEN; DE LA RENTA KYLE CAMPBELL PHOTO BY WWD, MONDAY, SEPTEMBER 17, 2007 13 WWD.COM

TOTAL EXPOSURE: Marc Jacobs is clearly proud of his bod — and bares it all again in the latest Clarins Bursts Sale Speculation Bubble MEMO PAD edition of Visionaire. The 168-page oversize book, sponsored by Louis PARIS — During the presentation of Groupe Clarins’ fi rst- Vuitton, includes nude photographs of a bevy of models, actors and celebrities, half profi ts for fi nancial analysts Friday, company executives including Jacobs, this edition’s guest editor. Visionaire co-founder Stephen fi elded numerous questions. Yet the one at the forefront of Gan said the concept was conceived more than two years ago and most of the everyone’s mind — whether Clarins is about to be bought out photos were taken late last year. “The idea was to do personal nudes of famous by L’Oréal — was gracefully preempted at the outset. people. We came up with a list of who are considered the most beautiful Olivier Courtin-Clarins, Clarins’ vice president of research people in the world,” he explained. That list includes Jennifer Lopez and Marc and development, opened the session by explaining that his Anthony, Mariah Carey, Drew Barrymore, brother, Christian (who is the company’s president and chief Naomi Campbell, Scarlett Johansson, executive offi cer), would be absent for personal reasons. Christy Turlington, Gisele Bündchen, “He does not have a meeting with Jean-Paul Agon,” said Jamie Dornan and Selma Blair, all Courtin-Clarins with a smile, referring to L’Oréal’s ceo. “Nor Olivier shot by Mert Alas and Marcus Piggott. is he with competition.” Courtin- Though most of the images are quite As reported, a rumor circulating the industry that L’Oréal Clarins revealing, “not everyone is stark might bid for Clarins caused a lather of excitement this week naked,” Gan said (Lopez and Anthony and largely contributed to the company’s stock price spiking more than 8 percent during appear clothed, most of the models, trading Wednesday. Since then, the stock closed down 1.7 percent on Thursday to a unit including Daria Werbowy and Natalia price of 59 euros, or $81.74 at current exchange, and down 1.6 percent on Friday to 58.08 Vodianova, do not). Thus, the latest euros, or $80.47. edition is entitled “Private.” In the meeting, Pierre Milet, Clarins’ sec- Photographs of Jacobs appear in retary general, confi rmed the company is on the last pages of the book, where he the lookout for acquisitions. In the U.S., for appears lying across an oversize teddy BEAUTY BEAT instance, where Clarins lacks critical mass in bear in one image and draped in black the perfume market, the company could be in- rope in several others. (“His photographs were not retouched,” a Visionaire terested in buying a fragrance brand. staffer added.) Jacobs is no stranger to baring it all: He appeared naked on “But there are not many companies for sale, and when there is one, it’s way too ex- the September cover of Out magazine, and on the cover of WWD in September pensive,” he said. 2006, along with his business partner, Robert Duffy, to raise awareness of skin Milet also said Clarins and L’Occitane — through their joint venture via which they cancer. And Jacobs hasn’t posed naked only when he’s fi t — the designer also plan to purchase companies and further investigate alternative distribution channels to bared all for Vanity Fair in the Nineties. selective retailing — have identifi ed two small target companies. However, no negotia- Voyeurs and others can buy the issue for $375 beginning in early October; tions have begun, he said. 2,500 copies will be printed. But before sulking at the hefty price tag, consider As reported, the joint venture would be split evenly between Clarins and L’Occitane and “Private” will be sold in a limited edition Louis Vuitton gold monogrammed have about 500 million euros, or $692.7 million, at its disposal. case. At least they thought to dress the book up, even if its subjects inside Company executives said Clarins’ operating margin should return to 12 percent after aren’t. — Stephanie D. Smith 2008. It declined 2.9 points in fi rst-half 2007 to 8.1 percent, due to numerous factors, in- cluding a negative currency effect. There was also a lower gross margin, thanks to the DONATELLA REALLY WORKS: The cover of The New Yorker’s semiannual style issue effect of a stronger euro and a less favorable product mix; signifi cant marketing and is a play on the old woman who lived in a shoe, this time with a massive pink commercial efforts by Clarins’ beauty division, and losses in the U.S. market resulting platform mary jane invading the footwear neighborhood. Articles and fashion from a decline in department store orders as the company took measures to boost sales editor Susan Morrison said the cover, drawn by Bruce McCall, was inspired by involving restructuring expenses and signifi cant A&P expenses. seeing the shoe “practically everywhere — in our cafeteria, in magazines, on As reported, Clarins posted fi rst-half net profi ts of 36.7 million euros, or $48.8 million the street.” Elsewhere in the issue, Lauren Collins profi les Donatella Versace, at average exchange, down 12.4 percent over the prior-year period. At constant exchange, the product of a year of spending time with the designer, Morrison said. it decreased 6.1 percent. “[Versace’s] external image is like a cartoon character, a disco-queen party Net sales hit 494.6 million euros, or $658 million, up 4.2 percent year-on-year. At con- girl. But what you learn in the story is that in fact the reality belies that stant exchange, they rose 6.9 percent. image. She’s an incredibly diligent, hardworking designer who has added her — Jennifer Weil own signature to Versace.” There’s also a profi le of Paper magazine editor Kim Hastreiter, whom Morrison termed the “guardian of the last fragments of downtown.” On a more scholarly note, business columnist James Surowiecki argues against strengthened intellectual property laws, saying copying and knockoffs in fashion stimulate productivity and innovation. Surowiecki points out there Murray to Head Two Nautica Lines is “little evidence that knockoffs are damaging” the luxury fashion business (not exactly a stance By Whitney Beckett served as president of the vendor, which has that will please the magazine’s fashion and struggled with earnings of late while VF has luxury goods advertisers). He cites a paper by iz Claiborne Inc. alums Denise Seegal boomed. When news of Murray’s departure two law professors (who also made their case Land Karen Murray have reunited at VF from Claiborne broke in February, analysts in The New Republic in August) positing that, Sportswear Inc. noted a competitor could hire Murray and in an industry that can offer few engineering Seegal, president and chief executive capitalize on her relationships. improvements to convince consumers to buy offi cer of the VF Corp. division, has hired “While I was president of Liz Claiborne something new, knockoffs create “induced Murray as president of Nautica men’s Inc. and Karen was group president of obsolescence:” when a trend becomes easily sportswear and Nautica Jeans Co. Claiborne men’s wear, I was impressed accessible and ubiquitous, early adopters move Murray left Claiborne — where she with her strong leadership skills, her on and generate “the incessant demand for worked for 15 years, most recently as group strong retail relationships and her ability something new.” Moreover, Surowiecki argues president of men’s wear, midtier, interna- to develop brands, understand the consum- that the knockoffs “are, for the most part, tional alliances and licensing — in February er and develop product that is appropri- targeted at an entirely different market segment when Claiborne’s new ceo William L. ate,” Seegal said. “When I read the news — people who appreciate high style but can’t McComb eliminated the group president po- [of Murray’s exit from Claiborne], I thought afford high prices.” Knockoffs, he writes, may sition as part of his corporate realignment. of her. But this is really about where the even act as “gateway drugs,” encouraging buyers “I have had many fl attering offers, but Nautica brand is and how to accelerate our to someday buy the originals. But he does draw Nautica is a brand that I have always re- growth. I think that Karen’s experience in a distinction between counterfeits — which are illegal — and knockoffs which, spected,” Murray said. “I am very excited the men’s wear industry is an appropriate for the moment, are not. about joining not just the Nautica brand fi t for us.” At 105 pages, advertising for the issue is up 25 percent over last year, but also VF Corp.” Based in New York, Murray replaces which was fl at over 2005. Brands advertising in the issue include Louis Murray and Seegal worked together at Chris Heyn, who has left “to pursue new ca- Vuitton, Dior, Giorgio Armani and Bulgari. — Irin Carmon Claiborne from 1996 to 2000, when Seegal reer opportunities,” according to VF Corp.

will chair the Walk of Style induction ceremony on Oct. 18, the fi nal day of Los Angeles Fashion Week. Galanos will be feted with a plaque on Rodeo Drive; an outdoor Rodeo Walk to Honor Galanos exhibition of Galanos’ images taken by photographer Victor Skrebneski will run with the event from Oct. 14 By Rachel Brown In an interview, Galanos bemoaned the lack of pro- to 28. priety in current fashions. “Once everyone started The ceremony will be an intimate luncheon, a de- ames Galanos set up a Los Angeles workshop in wearing blue jeans, I knew it was time to get out of the parture from galas in previous years. “We like to have J1951 from which he created elegant evening confec- business,’’ he said. “What happened to the days when it where each time is something unique and different,” tions that sheathed a Who’s Who of political, entertain- a woman could turn heads in a restaurant by the way Berne said. Doris Raymond, owner of Los Angeles vin- ment and social figures. she was dressed?” tage resource The Way We Wore, pointed out the de- Now the designer, who retired in 1998, is joining Peri Ellen Berne, co-chair of the Rodeo Drive Walk signer has a following among today’s starlets. Maria a Who’s Who of fashion as the 2007 recipient of the of Style and store director of Fendi Beverly Hills, said: Bello wore a blue Galanos dress to the Critics’ Choice Rodeo Drive Walk of Style Award. Galanos becomes “He is clearly known for graceful, understated classic Awards in January, and Jessica Alba has picked up the 11th person to receive the honor, along with Gianni designs, but at the same time, he always did a twist, Galanos’ cocktail wear from Raymond. and Donatella Versace, Salvatore Ferragamo, Edith [such as] a big bell sleeve or a little collar detail.” “His silhouettes transcend time,” Raymond said. Head, James Acheson, Milena Canonero, Herb Ritts, Former fi rst lady Nancy Reagan, who wore Galanos’ “His pieces were made uniquely….He infuses them Mario Testino, Tom Ford and Giorgio Armani. dresses in the White House, and Betsy Bloomingdale with craftsmanship and is a true artisan.” 14 WWD, MONDAY, SEPTEMBER 17, 2007 WWD.COM Innerwear Report Lingerie Breaks Out of the Boudoir

By Karyn Monget Innerwear executives generally said they Rosy’s liked the mix of fashion and function and the femme LYON, France — Innerwear as outerwear is a firmly abundance of materials to create new ideas fatale look entrenched fashion look, but this year’s Lyon, Mode and concepts. at The City proved there are plenty of permutations left in Josie Natori, who exhibited the Natori Vintage the trend. and Josie collections, said, “Animal, animal Show. The formal runway shows at the fair highlighted and more animal prints were a big idea at a high-octane mix of intimates and lingerie-related the Interfilière. The color gray was very accessories that covered the gamut from sleek and strong. And we’ll be using the new DowXLA sporty to ingenue, girly and frilly and femme fatale. fabric which is wonderful.” DowXLA is a The key element was how the product was stretch microfi ber that wraps the body in merchandised, whether it was an allover lace longline gentle support with a soft, nonsnap stretch. bustier with suspenders with jeans or a multiprint bra Gwen Widell, senior vice president and briefs in a collage of fabrics paired with a little knit of merchandising and design at Wacoal shrug, a sheer embroidered tunic or active-inspired America, the U.S. unit of Wacoal Japan, pull-on pants. The result was a smorgasbord of ideas and noted, “I really loved the beautiful mixes concepts for retailers and developers of private label of accessories with lingerie. It looked very showing how they could cross-merchandise products fresh and new.” from different apparel and accessories categories. Overall attendance at the fair was off Swimwear, in particular, refl ected the overriding by around 1,600 compared with a year ago, infl uence of lingerie with special touches, including lots totaling 17,404 retailers, distributors and of glitz, one-shoulder treatments, elaborate detailing on sales representatives, but the number of bra cups and beaded transparent cover-ups that double exhibiting lingerie and beachwear brands Fiore’s as dressy tunics. On the fl ip side, lingerie featured remained almost fl at, 519 against 530 labels printed and intricate and delicate embellishments, Impressionist- in 2006. There were 5,943 French visitors, embroidered inspired watercolor fl orals and antique-looking oversize refl ecting the appetite for lingerie in France, corset and roses. Important developments in lingerie included: which generated sales of 2.53 billion euros, Seventies- ● A return to the Seventies-inspired bikini brief. or around $2.02 billion in 2006. inspired ● The balconette bra, which gives a wide, voluptuous This year’s edition was different because bikini. bosom reminiscent of “Dangerous Liaisons.” of the myriad creative venues in both the ● Men’s wear striping with combinations of small lingerie and textile forums and displays prints. that focused on summer 2008 for intimates ● Lots of ornate corsetry with suspenders and novelty and swimwear, and fall-winter 2008-2009 for legwear. fabrics and laces. The melding of seasons ● A multitude of lace insets juxtaposed alongside and product was the brainchild printed laces and luxe fabrics. of Eurovet’s chief executive Chantelle ● Short, contemporary daywear and sleepwear looks officer Marie-Laure Bellon- Kudreshov’s mixes it up at with more angular silhouettes. Homps and her team, and layered The Vintage ● Thongs that reveal froufrou frontal effects like generated increased interest bra and Show. sheer layered fl ounces and lace overlays. in two additional areas: the fl ounced ● Simple loungewear pieces in eco-friendly blends Interfilière segment, which briefs. of Modal, bamboo, soy, hemp, jute and organic cotton this year was dedicated to and linens. colorful, whimsical and ornate The main presentation at the entrance kicked off embroideries, appliqués, laces with a “Wizard of Oz” version of the and seamless microfi bers that yellow brick road — a 4,200-square-foot can be used in a variety of green-carpeted walkway called La mediums, and swimwear and Galerie d’Evolution that linked the beachwear-related items. Interfi lière hall with the lingerie David R. Trerotola, pres- and swimwear halls. The pathway ident of global apparel at was strewn with a number of Invista Inc., said his company innovative displays such as a expanded four initiatives in carnival carousel of handcrafted Lyon: the Lycra Xtra Fine embroideries, trims, ribbons Collection, which offers sheer, and laces merchandised to featherweight warp and circular mimic pastries and candies knits ideal for second-skin called Delicious Audacity, and shapers; Lycra spaFX, an an interactive plastic wall extension of Invista’s micro- created by Christophe encapsulation technology Weber that featured a with scents including woman wearing lace vanilla, sea kelp and lingerie, which moved glacier; Lycra freshFX and changed positions Fabric Technology, as visitors touched it. which keeps the wearer cool and dry, and New Black Xtra Life Lycra fabric. The Xtra Life fabric was introduced in PHOTOS BY DOMINIQUE MAITRE PHOTOS BY

I really loved the beautiful mixes of accessories with lingerie.“ It looked very fresh and new. —” Gwen Widell, Wacoal America Elise Anderegg’s voluptuous 2005 as a chlorine- and UV rays-resistant bamboo, hemp and soy. balconette bra fabric for colored swimwear, and has Ria Stern, global brand and marketing director for and fl irty briefs. since been expanded to provide excellent North America at Hyosung America Inc., said reaction color uniformity in fashion shades. It was strong to Creora Comfort, the fi ber company’s latest can be rendered in marled effects and introduction. is resistant to unsaturated fatty acids like “We focused on three areas, beginning with Creora sweat and suntan lotion. Comfort, which had great reaction and offers softness, “I’m pretty excited about our spa aesthetic performance and a more comfortable fi t; our effects based on well-being, such as the eco-friendly fabrics by Creora, which continue to grow fresh aloe vera scent offered in socks, in popularity, and a partnership with DuPont Imaging Luna and very subtle scents like lavender and Technologies to create more decorative fabrics in teams a peppermint,” Trerotola said. He added lingerie and more sophisticated swimwear prints,” corset with that one area the company is exploring is said Stern. suspenders the compatibility of the Lycra Xtra Fine Stern noted the partnership will address the and pants. Collection with a range of eco-friendly “market need for quicker response and custom design yarns including organic cotton, jute, in shorter runs.” WWD, MONDAY, SEPTEMBER 17, 2007 15 WWD.COM Accessories Report Bergdorf’s Opens Fifth-Floor Boutique

By Sophia Chabbott ergdorf Goodman has opened a new accessories in-store shop concept on its Bcontemporary floor, 5F, which features brands such as Marc by Marc Jacobs, Theory and Rebecca Taylor. “We set out to look for a collection of accessories that complements the ready-to-wear on this fl oor,” said Ed Burstell, Bergdorf’s senior vice presi- dent and general merchandise manager of beauty, jewelry and accessories. “We really wanted to enhance the shopping experience.” Burstell has been working on the project for a year, traveling the world to fi nd new designers. Handbags, jewelry, eyewear, hats, scarves and small leather goods will be featured in the 550-square-foot space. All the merchandise will turn at quick 30-day cycles to keep the selection fresh. Price is not necessarily a differen- tiator for the fl oor; it’s more about a young, urban attitude. The prices currently range from $65 for small leather goods to more than $2,000 for a python handbag. Most items in the boutique are exclusive to Bergdorf ’s. Bergdorf Goodman’s Handbags by Chloé, Miu Miu and Stella McCartney are merchandised along with accessories shop on 5F. Botkier and Gryson. Lesser-known handbag brands such as Stephane Verdino and Tila March will be featured as well. The bags are on a wall display and are also Botkier bag. dispersed on tables throughout the colorful space. Fashion jewelry from Subversive, Susanna Galanis, Alexis Bittar, Ted Rossi and Cocotay is displayed in glass cases. Belts, hats, scarves and the like will vary seasonally. They are displayed whimsically on racks. There will be two sunglass stations. Though they are not yet installed, the stations initially will be stocked with Tom Ford eyewear. There is also a fragrance bar with scents from brands including Ineke, Matthew Susanna Galanis Williamson, Missoni and Prada. necklace. “It’s really about the spirit of the collection,” said Burstell of the mix. Taryn Rose Cuts a New Path With Gemesis De Grisogono

By Rachel Brown certifi ed by the Gemological Institute of America. “She is a proven risk taker with strong success.” Signs With Saks LOS ANGELES — Almost 10 years after leaping from Taryn Rose’s risk in 2006 was unveiling handbags for fall. orthopedics to footwear design, Taryn Rose compares her The brand has moved forward this year with a toned-down ine jeweler de Grisogono has given feverish pace with that of a surgeon. collection concentrating on leathers and stitching, and has FSaks Fifth Avenue its ring. Rose, a practicing physician for fi ve years after getting expanded to exotic skins — crocodile and alligator — and Later this month, Saks’ store in her medical degree from the University of Southern to fi ve eco-conscious styles. Clutches average $750 and totes Naples, Fla., will become only the second California, discovered cultured diamond producer Gemesis $925 to $975; the largest Nile crocodile bags are $9,900. The specialty department store in the U.S. to Corp. in March and is introducing a jewelry line using the Bloomingdale’s fl agship in Manhattan carries the line. carry the line, after Bergdorf Goodman. man-made stones this month. Rose’s debut eco-conscious “Listening to feedback, our customers defi nitely said, ‘I “After a courtship of four years, we collection of shoes and bags — called Taryn Rose Verde — want something that is more subtle,’” Rose said. “There are wanted to get engaged and fi nally we got will hit stores from December to January, only about eight so many great bags out there with a lot of hardware that it married,” said Giovanni Mattera, vice months since she considered going green. is nice to give another option.” president of de Grisogono. “Saks didn’t “Being a surgeon, you are used to working under The recyclable footwear, available in five sporty know exactly where to put us in the U.S., pressure,” she said. “My feeling is that a silhouettes and costing around $395 retail, and that took time to fi gure out. They successful business these days needs to Taryn Rose has soles made from vegetable oil, rather wanted us to be in New York, but we are move fast.” than petroleum. Leather uppers are in Bergdorf, and being exclusive is very Rose, who made her name creating tanned with vegetable dyes and no heavy important to us.” functional shoes that sit in luxury metals, and water-soluble glues are used Saks settled on Naples and could departments next to Jimmy Choo, Stuart throughout the shoes. The Taryn Rose expand the jewelry brand to four ad- Weitzman and Manolo Blahnik, enters new Verde bags are also vegetable-tanned and ditional stores soon, said Mattera, categories to offer practical solutions for are lined with organic linens. who declined to identify which stores. busy women. She described the Taryn Rose “I don’t think consumers necessarily “Demographically, a lot of our custom- limited edition jewelry pieces, priced at want or need to pay more for being eco- ers are in Naples, and wealth-wise Palm $5,000 to $25,000, as affordable alternatives conscious,” Rose said. “I didn’t switch Beach and Naples are very affl uent. Plus, to most fi ne jewelry brands and a way to completely over to an eco-friendly after New York, Naples is Saks’ biggest- avoid the social and collection because it is about reminding selling store.” environmental concerns the consumer of the spirit of being green, Saks is carrying watches and boutique spawned by natural but not forcing them to do it. People want jewelry, which retails starting at $15,000. diamonds. to be mindful and if they like the product, The fi rst delivery includes 40 pieces, and “We probably they will buy it. It is just another benefi t.” De Grisogono is planning a trunk show at didn’t need To help her company grow, Rose the Naples Saks for the beginning of 2008 Taryn Rose to be brought in investment partners last year to offer its full collection. a jeweler, except whom she said are not involved in “day- Fourteen years ago, Fawaz

I felt that, with TYLER BOYE PHOTOS BY to-day business.” She declined to disclose Gruosi founded the Geneva- this project, I their names or the extent of the cash based fine jewelry com- was the perfect infusion. Rose is the ceo and maintains majority ownership pany, which has created person to combine of Culver City, Calif.-based Taryn Rose, which generated a niche using unique the craftsmanship A ring $20 million in revenues in 2005, increased to $30 million in materials like black and design with from her 2006 and is on track to hit $40 million this year. diamonds and sting- technology to give new jewelry In fi ve years, Rose envisions footwear — both the core ray (galuchet). The women a lot more for collection. Taryn Rose line and less expensive Taryn by Taryn Rose line is carried in some their money,” Rose said. line — to continue to constitute the largest portion of her 30 U.S. doors, and For most of the eight to 10 sales. However, she estimated that men’s goods may be as the firm does about jewelry designs, production will be limited to 100 pieces, much as 25 percent of the total and handbags as much as $150 million in world- although there are a few styles that net just one or two 30 percent. In addition, she is considering launching a foot wide sales. pieces, including $10,000 yellow diamond hoop earrings that care line and an apparel line focusing on temperature- “Saks is one of the Rose recently sold to a private buyer. Many rings, earrings regulating clothing. major department and pendants are centered on rose and dome themes, and Next year, Rose, who fl ed Vietnam at age eight, will have stores in the States, contain yellow diamonds and stones up to two carats. Rose spent a decade in the fashion business — and she’s not and we have to intends to sell the jewelry at Neiman Marcus and Saks about to get out yet. be there,” said Fifth Avenue, as well as her four signature shops. “I have never been close to selling completely,” Rose Gruosi. “Taryn really is the first person from the fashion said. “It is like a marriage. If you meet the right person, — Whitney industry to really attach her name to something like this,” it is the best thing you can do in the world. But if you are De Grisogono’s Beckett said Stephen Lux, chief executive offi cer and president of married to the wrong person, you don’t want to have to go boule bracelet Gemesis, referring to the company’s cultured diamonds through the divorce.” in red gold. 16 WWD, MONDAY, SEPTEMBER 17, 2007

Financial An Executive Take on Factoring’s Global Future

By Liza Casabona evolved through a prolonged period of consolida- nancing to help support their growth, and those that are tion. That consolidation has altered the landscape challenged and need support in restructuring, downsiz- J. MICHAEL STANLEY, MANAGING DIRECTOR AT of the industry, but has mirrored movements in the ing or merging. Rosenthal & Rosenthal Inc.’s factoring division, one of apparel sector. “It’s paradoxical in the sense that they’re going in op- the country’s larger factoring firms, knows the ins and “The biggest change we’ve all seen is the consolida- posite directions. One is going up very rapidly and one outs of the apparel business. He has to because the job tion of both the vendor and the retail spectrums. And is going down and challenged,” he said. “Those are the depends on an intimate level of knowledge of both re- the sourcing shift to low-cost-producing countries and companies that are the most needy.” tailers and vendors. the challenges it takes Because Rosenthal is a private institution, it is able But he was not always an insider. Thirty years ago, J. Michael to fi nance that supply to commit and give an immediate response to clients Stanley admits that the “only experience I had with Stanley chain,” Stanley said. who are in need of additional support, he said. The abil- apparel was wearing apparel.” Today, Stanley is a key Indeed, in looking for- ity to anticipate the potential problems of those clients player in the industry, and earlier this year assumed ward, Rosenthal is con- and respond consistently is the most diffi cult part of his the managing director title at the fi rm. Stanley, who has sidering the possibility job, Stanley said. been with Rosenthal for 10 years, is also a member of of opening an offi ce in “The most challenging thing is trying to be consistent the fi rm’s executive committee. Asia, he said. with what we do, to effectively treat people we’re doing Stanley was drawn to the factoring industry by a feel- ing that it represented a growth opportunity and was an interesting part of the fi nancial services world. The biggest change we’ve all seen is the Rosenthal & Rosenthal does in excess of $4 bil- lion in annualized volume in its factoring division, consolidation“ of both the vendor and the retail Stanley said. The fi rm also provides fi nancing for asset-based, real estate and fi ne art transactions. The spectrums. And the sourcing shift to low-cost- company employs roughly 200 people in its factoring division, divided between offi ces in California and producing countries.… New York. ” Since joining the industry after earning an under- graduate degree in business and fi nance in 1975, Stanley Stanley said today’s business with fairly, evenly and consistently. That’s what worked with a few factors before joining Rosenthal. He factoring industry is we strive to do.” started his career with United Factors and also spent more complicated than The payoff, he said, is in seeing clients succeed when time with Capital Factors. Since then, Stanley also it was in the days when they receive the support they need. Some clients pre- earned an MBA in fi nance. factors simply gave a company a line of credit, they bor- date Stanley’s time with the company, but Rosenthal has He currently serves as a board member at the rowed 80 percent against receivables and that was it. always operated on a business model that encourages Fashion Institute of Technology’s Educational “Today, it’s just not that simple. You’re borrowing loyalty, he said. Foundation for the Fashion Industries. He is active in against inventory, you’re borrowing against receivables “That’s what I’m endeavoring to do as managing trade organizations such as the Decorum Manhattan or borrowing against letters of credit, in transit invento- director of the company, to really continue that busi- Credit Club, the Commercial Finance League and the ry, the intellectual property and trademarks,” he said. ness model in a different era,” he said. In the current Commercial Finance Association, as well as in a num- The kind of clients Stanley works with also have era, the company operates off a different platform, ber of charitable organizations. changed some, he said. Typically the fi rm sees two types which includes an electronic platform and other de- The factoring industry, like many others, has of clients: those that are doing very well and need fi - velopments.

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©2007 Milberg Factors, Inc. WWD, MONDAY, SEPTEMBER 17, 2007 17 WWD.COM Analysts Foresee So-So Holiday Sales Season

By Jeanine Poggi made a concerted effort to create excite- Retailers need to create hot products and ment with unique product and personalized oliday spending may mirror back- “ customer service. “Since the designer mar- Hto-school trends, surging late in the a forum where salespeople interact more with ket caters to a fi nancially more stable cus- season. tomer base, I would expect that it will suf- “This holiday will not be that bad for customers. fer less impact than the discount market,” fashion,” said Marshal Cohen, chief retail ” Ultimate Financial Solutions’ Offi cina said. strategist at The NPD Group. “Customers — Marshal Cohen, The NPD Group But the biggest winners this holiday will not be distracted by too many new, season will likely be in handbags and must-have electronics, and it seems like a reason to buy more and shop the store, has sales, what else can you offer?” accessories, which are expected to take people will return to more traditional gifts, Cohen said. Department stores are especially away sales from footwear. with women rebuilding their wardrobes.” “Stores are not driving impulse. There guilty of not making adjustments to “I have not seen anyone at a retail Rising interest payments on mortgag- is so much self-service and discounting. bring back impulse, and are losing mar- level put impulse into shoe shopping or es, increased home-heating fuel costs and Retailers need to create hot products and ket share to specialty retailers and mass speak to the customers,” Cohen said. “I weather will all play a roll in consumer a forum where salespeople interact more merchants, Cohen said. am watching the momentum in footwear spending at retail this holiday, predicted with customers and educate them about Only some of the luxury retailers like from two years ago dissipate, with many Stanley Officina, president, Ultimate the right gifts,” he continued. “Everyone Neiman Marcus or Bergdorf Goodman have people instead turning to accessories.” Financial Solutions. The increase in foreclosures and “for sale” signs could trans- late into softer spending come the holidays, said David Reza, senior vice president, Milberg Factors. “If consumers can’t meet their mortgage payment, they are not going to buy new clothes,” said Andrew Tananbaum, president and chief executive officer, Capital Business Credit LLC. “But it really depends on how deep the foreclosures run and the weakness of the economy. More data is necessary.” TNS Retail Forward expects WE BELIEVE GREAT holiday sales this year to grow at the weakest pace in fi ve years. The weakness can be expected to spread beyond the home im- provement sector into the ap- parel and accessories channels, FASHION SENSE as well as other home goods channels, the fi rm said. While a strong b-t-s season typically correlates to a strong holiday, experts agree that over- HAS ALWAYS all expectations for the season are not “smashing.” One of the biggest contributors to a possible mediocre holiday could be the continuing decline of impulse shopping, NPD’s Cohen said. MADE GREAT Historically, 26 percent of holiday spending is derived from impulse purchases, which dropped to 19 percent last year. Impulse shopping, which in- cludes buying a personal item BUSINESS SENSE. that isn’t expected or a gift for someone that wasn’t on the consumer’s list, is a substantial part of purchase power, making up about one-third of all fashion apparel purchases. “When impulse is removed from the equation it can be the biggest contributor to a good holi- day or bad holiday,” Cohen said. The rise of online shopping MARC ECKO ENTERPRISES G-III APPAREL GROUP LTD. UNDER ARMOUR, INC. and gift cards has made impulse $100,000,000 purchases less frequent and $185,000,000 $195,000,000 Senior secured credit facility Revolving line of credit Revolving line of credit harder to push. Sole Lead Arranger and term loan Agent The navigation of many retail Sole Lead Arranger sites is not conducive to sugges- tive selling, and Cohen suggests companies, through their Web sites, should help the customer Marc Ecko Enterprises is a global G-III Apparel Group Ltd. designs, Under Armour, Inc. is a leading understand other items they designer and retailer of lifestyle manufactures, imports and markets designer, marketer and distributor should purchase. “If I buy this sportswear and accessories outerwear and sportswear of branded performance products sweater, what other products would I like? No one in retail is utilizing suggestive selling on- line,” he said. Financing an apparel business takes more than cash. You couldn’t have gotten where you are without But Cohen does cite Ann creativity, ambition and drive, so why would you demand any less of your lender? At CIT Commercial Services, Taylor, Lane Bryant and we look beyond the spreadsheets to focus on your people, your ideas and your possibilities. Through business Victoria’s Secret as retailers be- cycles and fashion cycles, we partner closely with our clients to develop customized financial solutions that ginning to make use of Internet meet the challenges of a global business environment: from working capital and acquisition financing to functionality. domestic and international credit protection to financing foreign receivables. To learn how we can help your Gift cards also have made hol- business, visit cit.com or call us at 800-248-3240. iday shopping too easy for shop- pers, allowing them to enter the store and head straight for the GROWTH FINANCING CREDIT PROTECTION DEBT RESTRUCTURING IMPORT/EXPORT FINANCING WORKING CAPITAL cash register, bypassing other pos- sible purchases. Instead, retailers ©2007 CIT Group Inc., the CIT logo, and “Capital Redefined” are service marks or registered service marks of CIT Group Inc. should reward the customer for buying a gift card and give them 18 WWD, MONDAY, SEPTEMBER 17, 2007

Financial Leeds’ Two Distinguished Careers By Arthur Zaczkiewicz and former chairman and ceo of ing hedge funds in the nation, into the conversation, such as ny for the next 14 years, accom- Vicki M. Young Manhattan Industries, you also Buckingham’s RAF fund. RAF Allen Questrom, Terry Lundgren plishing profi t and sales growth launch a new career. invests in retail, apparel and and Peter J. Solomon. along with market share expan- Leeds was ousted from the footwear stocks — hence its Asked about how he spends sion. One of Leeds’ notable suc- hat does a businessman do top spot at Manhattan Industries name. a typical day, Leeds shrugs cess stories was the Perry Ellis Wafter a career that culmi- 16 years ago following a hos- “A dollar invested in and quickly changes the topic, brand. The late Perry Ellis was nates as the chief executive of- tile takeover of the company Buckingham RAF when we which circles back to what he discovered by Frank Rockman, ficer of a major apparel manu- led by the then-junk bond king began 11 years ago is now loves most: retailing and the ap- who served as president of the facturer that launched a famous Michael Milken. Leeds then en- worth between $17 and $18,” parel industry. It becomes clear Vera Sportswear company, a di- designer, got caught up in a tered the investment industry Leeds said over a steak tartar his deep knowledge of those in- vision of Manhattan Industries bloody junk bond takeover battle by becoming an analyst at the lunch at Patroon, which is near dustries, their leaders and the where Ellis worked as a designer. and was the major men’s shirt Buckingham Research Group Buckingham’s Midtown offi ces sometimes subtle differences Leeds realized Ellis’ talent, and player, which also happened to Inc., parent of Buckingham and one of his favorite lunch that lead one to perform better threw his support behind him. have its stock price multiply 24 Capital Management Inc. spots. “That’s a pretty good re- than another is the cornerstone “I remember so well call- times during his tenure? Today he serves as chairman turn for those people who were of Buckingham RAF’s success. ing up the major fashion press Play golf, of course. But if of Buckingham Capital, run- willing to give me a chance as “The retail and apparel in- and asking them to see the lit- you’re Laurence C. Leeds Jr., ning one of the top-perform- an aging rookie in the world of dustry is a crucible of training. tle show we were putting on by hedge fund managers.” The competition is enormous. this new young designer, Perry Leeds was investing in the re- Survival and success are even Ellis,” Leeds said. “It cost $5,000 tail and fashion sector long be- tougher to come by than they are and took place in the Vera show- fore it became au courant to do on Wall Street,” he said. room. They all fell in love with so. He is considered a trailblazer Leeds, 78, began his fi rst ca- Perry and his clothes.” Ellis be- in the sector, taking large stakes reer in 1955 when he joined the came one of America’s preemi- in retail fi rms and holding them Manhattan Shirt Co., which was nent designers in the Eighties, for the long haul. Leeds now has founded by his great-grandfa- and his brand ranked with plenty of company with other ther in 1857. He chose to make those by Calvin Klein and Ralph funds such as Turner Investment shirts instead of joining the Lauren. But Ellis’ life would end Partners, Invesco plc and State Wall Street fi rm Spear, Leeds tragically with his premature Street Corp. jostling for posi- & Kellogg, an investment bank death from AIDS in 1986. tions in the industry’s top pub- founded by his father, Laurence. Today, at Buckingham, lic stocks as well as big, private SLK was sold several years ago Leeds extensively leverages equity companies such as KKR to Goldman Sachs for $5.4 bil- his decades of industry knowl- and TPG making stakes as well. lion. Leeds never worked at his edge. “The same principles Leeds’ top picks in the fund father’s fi rm, and received none apply,” Leeds explained. “A include Polo Ralph Lauren Corp., of the proceeds of the sale. number of years ago I real- Coach Inc., Abercrombie & Fitch “I chose to go into the shirt ized that what I was building Co., American Eagle Outfi tters business instead, and it cost me here at Buckingham was too Inc., Gildan Activewear Inc., $5.4 billion,” he joked. large for just one person, and Kohl’s Corp., Urban Outfitters He must have thought a lot I was fortunate to fi nd Daniel Inc. and Phillips Van Heusen about the wisdom of his ca- Schwarzwalder, who is today my Corp., among others. reer choice after he became partner and co-manager of our Leeds’ Buckingham RAF is ceo, president and chairman of fund. He is enormously knowl- held in high regard by inves- Manhattan Shirt, which later be- edgeable, and both of us have a tors as well as industry peers, came Manhattan Industries, in huge corporate advantage hav- and he’s considered a top stock 1974. On a Thursday in October, ing been in the industry; we picker. One investment banker the board relieved Leeds’ cous- can understand the businesses, of a large, New York-based fi rm in, Robert Leeds, of the post and know what makes sense, sepa- said he rolled a “lot of personal gave it to him. The company was rate reality from fantasy and money” into Leeds’ $1.5 billion in dire straits — its shares were have hundreds of personal re- fund. The banker’s faith in the trading at 62 cents, losses were lationships with executives both fund is based on its robust per- mounting and the banks were of manufacturers and retailers formance: a compound return making threatening sounds. around the country. We work rate of slightly less than 30 per- So Leeds spent that week- very hard at this business. We cent through the end of last year. end in “emergency sessions” attend myriad industry func- “Leeds has an exceptional with the fi rm’s senior-level ex- tions; we spend many hours in gift for this work,” the banker, ecutives. In the end, a plan was the malls. We have Rolodexes who requested anonymity, said drawn up. Expenses would be encompassing hundreds of store recently. “The fund is tops.” cut drastically and 300 employ- managers around the country to At the Patroon lunch, Leeds ees ended up losing their jobs. keep abreast of what’s happen- makes a good listener. A dapper “During the next few weeks, ing in retail. This is no simple dresser who can don everything all of Manhattan’s fi nancial ar- game. It is highly competitive. from a double-breasted suit to a rangements with its bank and But winning is enormously in- navy blazer with blue jeans and other lenders had to be ad- vigorating and exciting.” French cuff shirt, Leeds pauses justed,” Leeds recalled, adding Last year, Lee Backus, an- strategically for effect, and waits the company worked out new other well-known industry for opportunities to interject fi nancial arrangements, which fi gure who years ago founded his insight and opinions into included factoring its receiv- Merona Sport and became one the conversation. Leeds isn’t a ables. The ship was righted, and of Wall Street’s top analysts at name-dropper, but industry no- “bankruptcy was averted.” Buckingham Research, joined tables somehow make their way Leeds would steer the compa- RAF and is now part of the team

For a relationship that fits , choose Sterling. Sterling Factors has been servicing small and mid-size companies for over 75 years. Let us create a customized factoring arrangement that fits your needs for financing or for a non-borrowing relationship that provides credit protection and back office support. We are a full service factor that has built a solid reputation in the Apparel Industry. Call us to find out how we can help protect your assets or provide funding to help fuel your growth.

STERLING FACTORS CORPORATION A Subsidiary of STERLING NATIONAL BANK

John LaLota, President John Saraniti, Director of Business Development 212.575.4415 212.575.3458 [email protected] [email protected]

www.SterlingFactors.com | Our Doors Are Open All The Way To The Top | EST. 1929 • NYSE: STL • Member FDIC WWD, MONDAY, SEPTEMBER 17, 2007 19 WWD.COM

ing of which companies are the ment vehicle, and there are oth- Instead, Leeds and his team long-term strategic ones because ers that are wildly speculative,” keep a close eye on product as- we are long-term strategic play- Leeds said. “There are some sortment, pricing and gross mar- ers. We ask, ‘Who is creating a that are pure vanilla and simply gin rates. They also try to esti- dominant position in the mar- go long and short equities. Some mate full-price sell-through, and ket? Who has a reason for long- are market-neutral, some are the amount of clearance activity. term existence?’ And of course, horrendously leveraged. It is like Leeds, despite spending so we look at management.” the term ‘female’: She can be much time overseeing the fund, When Polo Ralph Lauren one month old or a great-grand- still manages a full family life. went public, for example, Wall mother, slender or buxom, at- Last year, he celebrated his 50th Street compared the company to tractive or unattractive. It is the wedding anniversary with a Liz Claiborne and Jones Apparel same with hedge funds — they party in a massive tent on Park Group. “But we realized it was come in all shapes and sizes.” Avenue at the Four Seasons something completely different,” Leeds said as a broad gener- Restaurant. The event was at- Leeds said. “We understood that alization, most hedge funds are tended by many longtime indus- it was a unique, world-class run by “extraordinarily intel- try social and political friends, brand that stood for more than ligent people. I think there are including Paul and Daisy Soros, just apparel and whose image undoubtedly a few too many who Ann and Andrew Tisch and made it far superior to just a are not suffi ciently risk-averse. I Nicole Miller. He and his wife, normal apparel company. We imagine that the growth of hedge Dalia, have two married daugh- sensed intuitively that over the funds has added some degree of ters and six grandchildren. years it would greatly outper- volatility to our equity markets. Their son Cary passed away four form these other companies that Here at Buckingham, we tend to years ago. the analysts were comparing it be perhaps more of the pure va- “I was really blessed to, at to. This is our edge.” nilla conservative type.” age 59, find such an exciting Many hedge funds “just look But hedge funds often don’t un- and rewarding second career,” at the numbers,” he pointed derstand what makes a company Leeds said. “I owe a great deal out. “They don’t understand the succeed, he added. “A lot of hedge to David Keidan, my dear friend inner essence of a company.” funds are also glued to monthly and the ceo of Buckingham Leeds said the term “hedge same-store sales results.” Research Group, for plucking fund” is used as such a “broad Leeds scoffs at their mis- me from the ranks of the unem- generic descriptive that it is guided obsession. “Comps are ployed and giving me a shot at a wrong to address the category the most overrated investment new career. It has been a ball, I using sweeping generalizations. metric,” he said. “Over the long still fi nd it stimulating and excit- “There are hedge funds that term, one could argue their sig- ing, and hope to be able to keep really mean what the name im- nifi cance. But what happens in doing it for a good while longer. plies and, being hedged, are a any one month period is less Winning keeps you young, and thoroughly conservative invest- important.” it’s a lot of fun.” PHOTO BY TALAYA CENTENO TALAYA PHOTO BY managing the fund. corps throughout a corpora- Leeds said managing a suc- tion. There’s something magical cessful hedge fund is “enor- about the leadership and the mously financially lucrative, responsibility of charting the where if one is successful one destiny of a large public corpo- makes a multiple of what a ceo ration that you don’t fi nd in the is paid in industry.” He acknowl- money-management business.” edged that working as a ceo for So what are Leeds’ criteria THE ART OF FINANCE a manufacturer and managing a for picking investments? It’s a fund are “extraordinarily chal- bit complicated, and requires a lenging intellectually. lot of work. “However, there is something Leeds and his partners spend wonderfully appealing about time hunting for information, being the ceo of a major corpo- talking with company execu- ration,” Leeds admitted. “One tives, attending conferences. It’s really affects the lives and des- all about keeping an ear to the tinies of many people, and one’s ground and an eye on the mar- quality of leadership really can ket. “It’s a constant gathering of make a difference in develop- information,” Leeds explained. ing a team spirit and esprit de “A constant honing and decid-

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amount of turmoil in the market....I still see lenders wanting to lend, but they are Debt, Equity Financing Question Becoming More Diffi cult less aggressive. It isn’t so much seek- ing the most qualifi ed borrowers as it is n the current economic environment, “The dynamics have not changed that nine debt. The most expensive is equity. about them becoming more conserva- Iwhere the credit markets are taking an much. Subordinated debt has advantages In the long run, equity costs the most be- tive because banks want to lessen risk,” extended summer vacation, companies for principals, depending on their own cause you are giving up opportunity and Kestenbaum observed. exploring their options now may soon tax situation, and most want someone that is what you are building the busi- According to Andrew Jassin, manag- have a more difficult time choosing be- else to risk their money,” Reza said. ness for. Most companies have a mix of ing director of the New York consult- tween debt or equity financing. Richard Kestenbaum, partner at in- bank fi nancing, longer-term subordinated ing fi rm Jassin O’Rourke Group, selling “My observation is that in this kind vestment banking fi rm Triangle Capital debt and equity. You always want to use equity and cashing out is a compelling of funny market, where credit issues LLC, pointed out that equity fi nancing as much bank debt because it is the least option for anyone wishing to walk away abound, the cost of both debt and equity represents a higher cost of capital, noting expensive, and as little equity as you from the business as they see a huge are affected. Its hard to choose which to that many entrepreneurs believe equity can,” Kestenbaum said. payday sooner. “Right now I see many use fi rst, debt or equity fi nancing,” said is free until they have to give up control As debt becomes less obtainable, eq- equity purchases involving earn-outs. Jeffrey Kapelman, principal of factoring of the company. uity will play a greater role even if it in- The earn-out gets the seller a piece fi rm Hilldun Corp. “When you think of a balance sheet, creases long-term costs. Some companies of the money at closing, but they have The apparel industry has a history of think of an escalating price scale. Bank use equity because there are limited op- to continue to be successful for a pe- being highly leveraged, with fi rms relying debt is the cheapest way to fi nance. If tions, or they can instead decide not to riod of time to get the balance. A good on the support of factors and bankers and one can’t get senior secured fi nancing, hire the next person, not to do a deal or equity buyer will want to equitize the trade support from suppliers, accord- they go to term debt. A term loan costs put aside plans to build a new line, the seller and keep them in the business ing to David Reza, senior vice president, more than secured debt, and if they can’t banker said. for a while.” western region, for Milberg Factors. get that they go for subordinated mezza- “I think there is still a considerable — Vicki M. Young

Weekly Stocks Fast Stats 52-WEEK VOLUME AMT 52-WEEK VOLUME AMT HIGH LOW RETAILERS P/E (000’S) LAST CHANGE HIGH LOW RETAILERS P/E (000’S) LAST CHANGE 84.92 65.75 Abercrombie & Fitch (ANF) 15.8 7135 79.30 2.55 46.16 27.06 Jos. A. Bank (JOSB) 12.4 4777 32.14 3.64 28.75 21.19 Acadia (AKR) 57.4 1657 25.73 1.47 34.84 15.24 Kellwood (KWD) 4.7 4275 16.48 -1.10 31.88 18.29 Aéropostale (ARO) 12.9 22419 19.56 0.68 28.32 19.09 Kenneth Cole (KCP) 17.2 826 20.76 0.10 Total dollar volume of the 26.07 17.01 Alberto Culver (ACV) 10.9 4006 23.65 0.80 72.79 63.79 Kimberly Clark (KMB) 18.1 14064 69.55 1.79 fragrance market, 2006: 3.45 1.45 Alpha Pro Tech (APT) 13.1 310 1.52 0.02 53.60 33.74 Kimco Realty (KIM) 29.5 15637 43.50 2.88 34.80 21.46 American Eagle (AEO) 13.7 42343 25.55 1.73 79.55 52.50 Kohls (KSS) 15.5 36627 56.87 2.93 $2.8 billion 45.15 27.05 Ann Taylor (ANN) 17.5 9591 32.36 1.56 37.81 21.57 K-Swiss (KSWS) 13.4 1394 22.36 -0.51 8.61 5.50 Ashworth (ASHW) - 491 6.08 -0.17 22.99 11.63 LaCrosse Footwear (BOOT) 17.3 4 18.32 -0.44 41.85 28.99 Avon (AVP) 27.7 29907 34.09 1.75 15.28 11.10 Lakeland Inds (LAKE) 17.7 47 11.87 -0.24 Total annual sales 15.75 3.72 Bakers (BKRS) - 268 3.75 -0.25 32.60 20.73 Limited Brands (LTD) 11.4 26020 22.98 1.50 26.86 12.35 Bebe (BEBE) 16.6 6478 14.13 0.81 24.23 10.90 Liquidity Services (LQDT) 34.4 934 12.34 0.97 of celebrity-branded 40.00 28.67 Benetton (BNG) 41.3 11 31.00 0.04 46.84 30.89 Liz Claiborne (LIZ) 16.8 7865 32.79 0.44 fragrances, such as 18.00 11.29 Big Dog (BDOG) - 0 15.85 0.14 13.15 3.65 LJ Intl (JADE) 17.7 10230 4.89 -1.60 9.60 6.49 Birks & Mayors (BMJ) 6.4 0 6.80 -0.10 39.39 28.34 Luxottica (LUX) 23.5 725 34.04 -0.58 Prince’s 3121: 39.15 27.07 BJs (BJ) 22.5 13226 34.16 0.60 103.59 71.22 Macerich (MAC) 100.0 4795 82.77 2.90 4.98 0.81 Blue (BLUE) - 315 0.86 -0.07 46.70 28.51 Macy’s Inc. (M) 17.0 88611 30.18 0.42 $196 million 1.60 0.80 Bluefly (BFLY) 9.3 135 0.90 -0.03 24.49 15.03 Maidenform (MFB) 11.5 1056 16.29 -0.23 57.66 17.52 Bon-Ton (BONT) 12.0 4547 23.83 -2.73 56.64 35.45 Men’s Wearhouse (MW) 14.4 5388 47.98 -0.60 37.68 18.53 Brown Shoe (BWS) 14.2 4762 20.08 -0.61 26.31 18.90 Marcus (MCS) 17.1 815 19.94 0.09 Marshmallow sales in the 41.45 24.00 Buckle (BKE) 17.0 1064 37.67 1.73 57.65 14.48 Mothers Work (MWRK) 23.4 439 17.21 -0.05 26.32 12.50 Caché (CACH) 39.9 1228 16.26 0.00 35.40 22.99 Movado (MOV) 16.4 1399 32.40 1.62 U.S.: $125 million 28.57 14.76 Capitalsource (CSE) 10.5 43136 18.09 0.94 3.50 0.75 Movie Star (MSI) 229.0 70 2.20 -0.14 30.18 19.15 Carter (CRI) - 5921 19.57 -0.51 25.95 20.20 National Retail Prop. (NNN) 16.9 5760 23.35 0.45 15.10 9.26 Casual Male (CMRG) 8.3 1459 9.89 0.44 16.20 6.12 New York & Co. (NWY) 9.6 6109 6.33 -0.02 Expected price point 25.66 17.60 Cato (CTR) 13.4 1293 20.96 0.06 60.35 40.37 Nike (NKE) 19.2 23350 57.23 2.53 50.36 28.36 CBL (CBL) 29.8 4889 34.60 1.71 9.38 2.05 Nitches (NICH) 253.0 121 2.44 -0.16 of the 2008 Maserati 12.74 8.94 CCA (CAW) 15.0 52 9.87 0.07 59.70 41.36 Nordstrom (JWN) 17.6 26106 49.42 2.44 Quattroporte Sport GTS: 12.50 3.85 Charles & Colvard (CTHR) 15.7 709 3.82 -0.19 29.02 16.63 Oakley (OO) 38.1 1667 29.00 0.13 33.93 15.56 Charlotte Russe (CHIC) 10.3 2618 17.15 0.40 6.77 3.25 Orange 21 (ORNG) - 75 4.37 0.12 $170,000 15.57 7.67 Charming Shoppes (CHRS) 11.9 5997 8.70 0.17 25.00 5.00 Orchids Paper (TIS) 33.9 4 8.40 -0.11 68.31 32.93 Chattem (CHTT) 24.7 1611 64.58 2.41 53.98 33.45 Oxford (OXM) 11.5 1461 34.25 0.07 48.76 34.25 Cherokee (CHKE) 9.8 298 38.01 1.17 23.11 13.00 Pacific Sunwear (PSUN) 390.0 14167 15.65 1.01 27.94 14.35 Chico’s (CHS) 17.7 17799 15.23 0.37 7.97 2.63 Parlux Fragrances (PARL) - 1627 3.72 -0.03 SOURCES: THE NPD GROUP, CANDY USA 71.81 25.10 Children’s Place (PLCE) 9.8 4541 25.85 -1.26 37.20 20.58 Payless Shoes (PSS) 11.5 14424 21.75 -0.39 31.25 11.56 Christopher & Banks (CBK) 15.1 4321 12.83 0.83 35.22 19.30 Perry Ellis (PERY) 14.0 1278 27.56 0.33 43.83 34.70 Cintas (CTAS) 17.3 7674 36.37 0.72 62.19 39.92 Phillips-Van Heusen (PVH) 17.4 10691 52.84 -1.22 49.72 20.77 Citi Trends (CTRN) 15.4 1908 22.53 1.12 5.65 1.38 Phoenix Footwear (PXG) - 31 3.35 0.33 54.00 33.08 Coach (COH) 27.6 37549 47.94 3.27 19.51 12.87 Playtex (PYX) 29.3 6631 18.23 0.08 WWD Index 31.25 11.09 Coldwater Creek (CWTR) 21.8 27951 12.50 0.95 102.58 62.17 Polo Ralph Lauren (RL) 20.1 8047 79.70 3.12 70.16 59.35 Colgate Palmolive (CL) 21.4 20771 68.03 2.60 26.93 12.78 PriceSmart (PSMT) 42.1 534 23.10 0.05 70.93 51.66 Columbia Sprtswr (COLM) 15.4 1425 56.53 -0.08 1.50 0.02 Quaker Fabric (QFAB) - 50 0.04 0.01 32.19 19.60 Conns (CONN) 12.2 2576 21.94 2.08 16.08 10.90 Quiksilver (ZQK) 30.8 14904 14.14 1.02 65.57 47.89 Costco (COST) 25.6 30194 59.96 2.96 13.14 6.25 R.G. Barry (DFZ) 3.4 190 8.68 0.22 11.64 7.75 Cost U Less (CULS) 16.9 152 11.47 0.07 39.55 28.51 Ramco-Gershenson (RPT) 9.5 901 30.46 0.18 Composite 61.99 14.34 Crocs (CROX) 38.9 36854 57.91 0.99 93.49 61.99 Regency Centers (REG) 32.3 4991 71.91 3.16 12.30 4.37 Culp (CFI) - 166 9.55 -0.65 23.30 10.06 Retail Ventures (RVI) 12.9 5527 10.54 -0.25 943.42 5.00 1.09 Cygne Designs (CYDS) - 19 1.19 -0.08 1.75 0.99 Revlon (REV) - 4060 1.12 0.00 29.97 24.06 Deb Shops (DEBS) 18.0 130 27.22 0.39 19.23 8.40 Rocky Brands (RCKY) 14.8 425 10.29 1.00 113.50 45.21 Deckers Outdoor (DECK) 33.6 2086 94.82 3.42 35.17 24.88 Ross Stores (ROST) 14.3 10650 26.62 0.10 12.00 4.20 Delia’s (DLIA) 40.6 2120 4.50 0.02 23.25 14.38 Saks (SKS) 102.4 13376 16.52 0.77 20.50 14.91 Delta Apparel (DLA) 26.0 32 17.35 0.25 195.18 127.90 Sears (SHLD) 14.7 14671 134.93 1.23 10.58 5.61 Delta Galil (DELT) - 1 5.75 0.07 35.26 15.91 Shoe Carnival (SCVL) 10.2 810 16.29 -0.27 72.33 46.28 Developers Diversified (DDR) 27.3 5793 54.26 1.72 7.93 2.08 Shoe Pavilion (SHOE) - 182 2.87 -0.09 40.56 19.53 Dillard’s (DDS) 8.6 30039 20.47 -0.23 123.96 82.60 Simon Properties (SPG) 46.7 9633 96.16 4.04 22.65 24.93 15.86 Dress Barn (DBRN) 10.7 10684 15.90 -0.80 38.03 17.36 Skechers (SKX) 11.9 5436 20.85 2.27 44.71 26.30 DSW (DSW) 18.7 3806 26.75 -1.01 5.90 3.31 Sport-Haley (SPOR) - 0 3.66 0.00 42.06 33.67 Duckwall-Alco (DUCK) 32.3 4 38.14 0.14 18.00 7.85 Stein Mart (SMRT) 11.6 3318 8.47 -0.19 14.27 6.50 Eddie Bauer (EBHI) - 1712 8.19 -0.16 5.00 2.72 Stephan (TSC) - 0 3.88 0.13 25.11 15.20 Elizabeth Arden (RDEN) 17.5 3234 24.22 0.23 44.70 18.24 Steve Madden (SHOO) 9.6 11858 18.76 -3.76 52.31 38.41 Estée Lauder (EL) 18.4 12661 40.09 -0.78 13.54 10.41 Superior Uniform (SGC) 44.8 0 12.10 0.45 34.98 13.58 Everlast Worldwide (EVST) 194.1 28 32.94 0.15 22.08 13.14 Syms (SYM) 48.4 1250 16.40 0.45 35.42 24.23 Family Dollar (FDO) 18.0 13847 28.59 0.59 31.00 18.14 Talbots (TLB) - 5940 18.29 -0.91 14.97 4.91 Finish Line (FINL) 9.7 19222 5.37 -0.13 2.15 0.65 Talon Intl. (TLN) - 111 0.81 -0.07 Weekly % Changes 26.16 23.03 Forest City (FCY) 30.7 106 24.85 0.70 13.70 9.51 Tandy Brands (TBAC) 18.7 57 10.70 -0.27 37.95 20.04 Fossil (FOSL) 26.1 9336 36.10 1.24 8.32 5.80 Tandy Leather Factory (TLF) 11.9 175 6.95 0.22 (ending Sept. 14) 15.74 9.71 Freds (FRED) 16.3 2327 10.43 0.24 43.56 32.32 Tanger Factory Outlet (SKT) 57.0 2647 38.58 1.45 41.85 34.81 G&K (GKSR) 19.7 1028 40.33 1.61 70.75 52.16 Target (TGT) 18.6 53239 64.51 3.51 21.20 11.38 Gaiam (GAIA) 64.2 1102 19.39 -0.29 2.20 0.96 Tarrant Apparel (TAGS) - 0 1.27 0.02 Gainers Close Change 21.39 15.20 Gap (GPS) 19.3 68489 18.00 0.06 63.87 42.23 Taubman (TCO) 71.1 3699 51.60 0.33 67.43 42.40 General Growth (GGP) 40.0 9713 49.56 0.31 12.13 6.50 Tefron (TFR) 11.2 152 7.07 -0.03 United Retail 13.55 70.44 54.15 29.78 Genesco (GCO) 20.5 20958 44.53 -0.27 56.79 32.72 Tiffany & Co. (TIF) 25.2 19586 52.17 2.88 26.74 10.20 G-III Apparel (GIII) 14.4 683 20.39 3.59 33.45 18.13 Timberland (TBL) 15.0 2308 19.51 0.36 Quaker Fabric 0.04 42.86 37.68 23.11 Gildan Activewear (GIL) 16.7 1738 31.95 0.07 31.17 25.74 TJ Maxx (TJX) 19.9 21845 30.84 1.35 29.69 19.39 Glimcher (GRT) - 2645 23.01 0.69 23.88 14.65 True Religion (TRLG) 15.9 1764 15.90 -0.42 G-III Apparel 20.39 21.37 15.37 4.32 Gottschalks (GOT) - 859 4.34 -0.27 47.00 27.23 Tween Brands (TWB) 14.3 25485 29.96 1.15 Jos. A. Bank 32.14 12.77 54.10 23.00 Guess (GES) 26.3 10202 47.04 -1.03 73.40 37.75 Under Armour (UA) 68.2 8571 62.20 -1.65 49.11 34.66 Gymboree (GYMB) 15.4 4837 38.77 1.62 3.07 1.69 Unifi (UFI) - 1585 2.18 -0.25 Skechers 20.85 12.22 20.25 11.76 Hampshire (HAMP) 43.4 0 16.50 -0.60 48.00 31.00 Unifirst (UNF) 15.9 715 39.20 0.20 33.73 21.20 Hanesbrands (HBI) - 3952 28.24 -1.80 20.00 7.50 United Retail (URGI) 23.0 3837 13.55 5.60 8.69 5.65 Hartmarx (HMX) 103.0 769 7.20 0.20 27.75 16.84 Urban Outfitters (URBN) 28.5 13239 22.62 1.38 Decliners Close Change 29.26 17.11 Helen of Troy (HELE) 11.5 4730 19.79 -0.90 96.20 72.47 VF Corp. (VFC) 16.0 4406 81.85 1.53 14.45 7.47 Hot Topic (HOTT) 26.1 4318 7.83 -0.23 51.00 22.54 Volcom (VLCM) 32.0 4480 37.93 1.65 LJ Intl. 4.89 -24.60 4.45 0.64 House of Taylor (HOTJ) - 1001 1.05 0.10 52.15 42.09 Wal-Mart (WMT) 14.3 138050 43.32 0.93 Steve Madden 18.76 -16.70 40.99 25.08 IAC Interactive (IACI) 43.9 23879 27.92 0.32 41.17 18.86 Warnaco (WRNC) 15.1 2881 34.04 0.79 23.83 14.49 Iconix (ICON) 25.3 7081 22.46 0.21 52.30 35.75 Weingarten (WRI) 23.6 4278 40.01 0.60 Unifi 2.18 -10.29 2.45 0.37 Innovo (INNO) - 748 1.92 0.06 34.01 21.35 Weyco (WEYS) 15.3 343 29.94 1.40 29.18 17.63 Inter Parfums (IPAR) 21.9 773 21.13 0.33 3.08 1.01 Wilsons (WLSN) - 245 1.78 0.07 Bon-Ton 23.83 -10.28 57.17 27.82 J. Crew (JCG) 18.6 3079 42.74 -1.04 31.08 24.55 Wolverine (WWW) 16.0 2743 26.21 0.81 87.18 61.54 J.C. Penney (JCP) 12.6 24449 64.22 -0.85 31.72 19.89 Zale (ZLC) 18.6 3653 22.68 0.30 Talon Intl. 0.81 -7.95 14.25 7.21 Jaclyn (JLN) 19.7 0 9.45 0.00 49.22 23.45 Zumiez (ZUMZ) 56.5 4957 47.20 1.84 35.54 16.73 Jones Apparel (JNY) - 27117 20.75 1.45 4QFDJBM
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o matter how you view the promise and opportunity of been greater because the cost of confusion is too high. multi-channel, two fundamental facts are clear: Con- Multi-channel retailing is not just about selling through Osumer shopping and buying expectations are higher than multiple channels but rather, should be viewed as a way ever and the intelligent use of customer and to create a more customer focused, market information is increasingly neces- more knowledgeable and more profit- sary to satisfy those higher expectations. B;7:?D=9ECF7D?;I¾ able enterprise. As Jason Jacobs, CEO of CORESense, said 97D:?:?DJ;HL?;MI¾ Three market leaders sat down to talk “Multi-channel retail is the new definition about their work, their view of current of retail.” With this reality comes the need ?CFEHJ7DJL?I?EDI trends and how they see the future devel- for new integrated thinking and a willing- opment of multi-channel. These candid ness to align internal systems operations |4 ~ interviews provide food for thought about with customer-facing services. The need for communication how to define multi-channel strategies and apply them to the consistency and clarity, both internally and externally, has never unique circumstances of each business.

Kbtpo!Kbdpct!jt!DFP!pg!DPSFTfotf-!b!! R mfbejoh!qspwjefs!pg!foe.up.foe!tpmvujpot! 'B gps!tnbmm.up!nje.tj{f!foufsqsjtft!xjui! | nvmuj.diboofm!tbmft!tusbufhjft/! | SQUEEZE MORE B[jÊiX[]_dm_j^iec[XWYa]hekdZ tion of new technology with economy of edj^[YecfWdoWdZ_jiXki_d[ii$ scale advantages of SaaS. Jacobs: CORESense is the market 9EH;I[di[ÊiijWj[ZjWh][jcWha[j BLACK OUT leader in Multi-Channel Retail Manage- _ij^[icWbb#jec_Z#i_p[h[jW_b[h$ ment Software and a pioneer in the Soft- 7h[j^[h[Wdo_d^[h[djb_c_jWj_edi ware as a Service (SaaS) movement. Our jeoekhiebkj_edij^Wjfh[YbkZ[ OF THAT LITTLE company vision was a product of seeing meha_d]m_j^bWh][hYb_[dji5 the fundamental shift in consumer ex- Jacobs: No. If you look across our cur- pectation caused by the internet and the rent customer base, everyday we process recognition that current retail applica- more transactions than a tier one re- BLACK DRESS. tions would not support this new para- tailer. So it’s not a technology issue, its digm. Today we are committed to our more a market adoption, market oppor- customers’ success tunity issue. Many providing them the tier-one retailers tools to acquire new have invested mil- shoppers, increase lions of dollars in conversion, delight their customers and systems that do what CORESense does. cultivate their customer base. Our SaaS What we’ve done is make that same in- delivery model aligns system costs with vestment in technology to offer best in Getting customers what they want, when they success and is the basis for a continual breed retail functionality to a much want it defines the Internet. Online product marketing growing Retail Ecosystem. larger market. SaaS makes it affordable is simplified and accelerated by our warehouse-to- >emZeoekZ[Ód[WdZZ[iYh_X[ to the SMB. They don’t have millions of ckbj_#Y^Wdd[bh[jW_bcWdW][c[dj5 dollars to spend. We feel good about em- web rapid deployment technology. Deep Internet Jacobs: Multi-channel retail is the powering the SMB. retailing experience scales markets you didn't know new definition of retail. Retail funda- OekWh[ed[e\j^[YecfWd_[i you had. And, our impeccable client service creates mentals of acquire, convert, delight and c[dj_ed[Z_dYedl[hiWj_ediWXekj what the Black Dress inspires. cultivate customers are just happening j^[]hemj^e\IWWIIe\jmWh[Wi at a faster pace and are significantly WI[hl_Y[ $MekbZoekjWbaWXekj Search Engine Marketing • SEO • Datafeed Marketing more technology driven. Technology j^_ijh[dZWdZ^emoeki[[_j in the area of Acquiring and Convert- Z[l[bef_d]5 ing shoppers is changing at the pace of Jacobs: At the outset, SaaS changed Moore’s law, doubling every 24 months. the total cost of ownership metric and We’ve plugged retail into Moore’s law. lowered the barrier to entry for robust We’re still seeing new ways and new in- systems. Information is the lifeblood novations on how we acquire and con- of business and every business will vert customers. CORESense is actively seek equilibrium based on its ability to partnering with companies that will ex- handle and take action on information. tend and enhance its Retail Ecosystem, People making decisions are what grow so our customers can enjoy early adop- any company. Good decisions require New York, NY pmdigital.com 800.254.0330 4QFDJBM
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4FDUJPO good information. Tier-one retailers spend a lot of money translate the data that’s in front of them into concrete ac- W\\[YjicWha[j_d]WdZfhecej_ed[\\[Yj_l[d[ii5 on information systems and even more on trying to ana- tion and strategy. Many systems make it difficult to de- Jacobs: Our philosophy is that your customers and lyze and take action on that information. SaaS puts that light consumers. And don’t forget about competition. In your employees are your two most important assets and power in the hands of the SMB. SaaS aligns costs of that the end it’s about serving that customer and making sure a single unified view of the customer allows you to make information system with your success. It allows the re- they don’t go somewhere else to be served. the greatest return on those assets. It costs you eight tailer to focus on their core competencies, make relevant M^WjWh[iec[e\j^[\WYjehi^ebZ_d]XWYa times a much to get a new customer as it costs to keep a meaning out of data and put ideas into action with tech- h[jW_b[hi\hec_cfb[c[dj_d]j^[a_dZe\[dZ#je# customer. That eight times is the investment you made nology versus being limited by it. [dZiebkj_edim[Êl[X[[djWba_d]WXekj5 in that customer. You make an investment in your staff M^WjWh[iec[e\j^[ceiji_]d_ÓYWdjY^Wd][i Jacobs: There are a lot of dynamics at play here. Some all day long but if you don’t give them the tools to know oekÊl[i[[d_dckbj_#Y^Wdd[bel[hj^[fWij\[m people have gotten down the path with sunk cost and it’s that customer, to bring them back, you’re not going to o[WhiWdZm^WjWh[j^[Ykhh[djY^Wbb[d][i5 hard to swallow that bitter pill. For some larger compa- achieve that ROI. The unified view allows you to touch Jacobs: What is of most significance is simply recog- nies SaaS has some controversy to it because it can ap- that customer in all the channels they want to see you in. nizing the sheer pace of change. The big cathartic change pear threatening to the IT department. Some people are You can gather a lot of information about that. For exam- was the dot com revolution. It was a success. You know just too busy to implement. There is still a bit of lack of ple, it’s not just about converting a sale on a Web site but a revolution is a success when the principles that caused awareness about the new systems. Retail is its own sport also about all the ancillary information about consumer it remain true. And the pace of change will not stop. In and needs its own gear. behavior and interaction with your brand. This can pro- terms of challenges, many are mired in trying to make MekbZoekjWbaWXekjj^[_cfehjWdY[e\^Wl_d] vide great foresight to your merchandising people. For a meaning of their multi-channel data. They’re not able to Wi_d]b["kd_Ó[Zl_[me\Ykijec[hiWdZ^emj^_i CORESense client, that web is developing into an intel- ligence gathering tool as well as a channel. J^ek]^jiWXekj j^[\kjkh[e\ieY_Wb

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qQ E e ckbj_#Y^Wdd[b5 Jacobs: There is a new generation of shoppers. They have grown up networked and rich media surrounds them. And they produce their own media. These be- haviors are impacting their The Buyer buying decisions. There is absolutely a convergence in eqQE social networking and the shopping experience. We are paying close attention to this. >emZeoeki[[j^[ Z[l[befc[dje\ceX_b[ cWha[j_d]WdZc# Yecc[hY[5 Jacobs: I view it as a natu- ral extension. Computers are getting smaller. The iPhone is going to be a big part of this. My customers’ Web sites all work on an iPhone. CORE- Sense works on an iPhone. The technology is just better and better. M-Commerce is going to be big because it’s about convenience. It’s part of this evolving ecosystem. <_dWbbo"_\WdWffWh[b h[jW_b[hYekbZcWa[ed[ Z[Y_i_edeh_dl[ij_d ed[fWhj_YkbWhWh[W"^em mekbZoekWZl_i[j^[c5 Jacobs: I advise that you look at the holistic view of your vision and strategy for acquiring, converting, de- lighting and cultivating cus- She is smart. She is savvy. She knows what she wants, how to get it, and she’s just a click away. tomers. It’s a framework for She also has options. Lots of them, both online and offline. So be relevant. To her. thought. All of your activities can fall in those areas. Cus- tomer delight is the big one Keep her engaged. Make her feel like everything you do is just for her. View every email and web and it basically covers every page as an opportunity to build a relationship with her. Be relevant and she will be one of your most aspect of your operations. It loyal and profitable customers. is the core. Everything from merchandise planning and inventory management to When Fortune 1000 enterprises want to build data-driven, relevant relationships with their custom- the more obvious customer ers online, they partner with CheetahMail. Using our email marketing, web analytics and database facing roles affect “delight.” We’ve all had less than de- marketing solutions, over 350 world-class organizations rely on CheetahMail for the best online lightful experiences at a re- marketing programs, platform and services to build increased relevance, loyalty and value. tailer. You can probably trace its root cause to a lack of in- formation. Figure out where Contact CheetahMail and learn how we can help you build relevance. you’re weakest and then in- vest across the board. You can’t speed up one car of the train. Don’t get caught up at Be Relevant SM the speed that change is com- 29 Broadway | New York, NY 10006 ing at you. Focus on where TEL: 800.396.5709 | [email protected] you want to go. It all slows

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Nbuu!Tffmfz!jt!Qsftjefou!pg!DiffubiNbjm-!b!hmpcbm!mfbefs!jo!pomjof!! R nbslfujoh!tpmvujpot/!DiffubiNbjm!jt!b!qbsu!pg!Fyqfsjbo-!b!xpsmexjef!mfbefs!! |~'B jo!qspwjejoh!jogpsnbujpo!tpmvujpot!up!pshboj{bujpot!boe!dpotvnfst/ B[jÊiX[]_dm_j^iec[XWYa]hekdZedj^[YecfWdo apparel and fashion: Neiman-Marcus, Adidas, The Lim- transactional and browsing behavior, and we use this WdZ_jiXki_d[ii$ ited, Bloomindales and JC Penny just to name a few. We data to ensure we’re sending a relevant message. This is Seeley: CheetahMail was incorporated in 1998 and consider retail a core strength. all done through a very powerful technology platform. since then we’ve been focused on the email industry. It’s >emmekbZoekZ[Ód[WdZZ[iYh_X[ckbj_#Y^Wdd[b M^WjWh[j^[ceiji_]d_ÓYWdjY^Wd][ioekÊl[ been our core competency and we’ve been actively in- cWha[j_d]5 i[[d_dckjb_#Y^Wdd[bel[hj^WjbWij\[mo[Whi5 volved in the evolution of this invaluable channel ever Seeley: Today’s customer has access to so much infor- Seeley: The most significant change is the number of since. In the earlier days of email marketing it was about mation through so many different means, that it is really channels: search, website, email are all becoming such two things: speed of getting the imperative to deliver relevant in- a prominent part of a multi-channel strategy. Yesterday, message out, and real-time report- formation. When I look at the his- offline media drove brand awareness and consumed most ing. In today’s market, those are tory of multi-channel, say five years marketing budgets whereas today online has become the table stakes. ago, it was multi-separate channel information source and media darling because of its pre- Today, companies expect much marketing. Everything was really cision, measurability and accessibility. People research more out of the channel and from siloed. Again, what we are seeing online and they buy online. It’s convenient. the brands they know and trust. It’s become much more now is a real convergence. Companies are bringing, what In the retail direct business, five years ago, online data-centric. The whole idea of relevance, we take very were separate groups, together and agreeing internally (website and email) may have accounted for 10% percent seriously because email needs to become as individual- that the customer can shop in multiple channels and that of the direct business; it’s now become as big as the offline ized as your customers. Having access to the data is key an email for example can supplement a TV advertisement direct channel and in many cases bigger. And it contin- to relevant marketing. or catalog or a combination etc. ues to grow. For example, there’s a convergence here. Companies emZe[i9^[[jW^CW_b^[bf_dj^_ih[]WhZ5 lization of these valuable channels and not using them three-time purchaser in the last month and purchased Seeley: You’re right. This is the effect of having all those respectfully or responsibly can be very damaging to a both in the store and online etc., This is just a small sam- siloed channels for so many years. It’s only now that com- brand. Being aware of the barrage of advertisements in- ple of the type of information that needs to be understood panies are realizing that the customer wants the same undating our customers should make us mindful of the before an email message goes out. price on the Web site as the store, they want to be able to need to be relevant. We are looking at that customer holistically across buy online and pick-up in store, etc. The first step for that The key challenge is to “think relevant.” channels. And everything that CheetahMail is driving 360-degree view is organizationally to get out of those si- <_dWbbo"_\WdWffWh[bh[jW_b[hYekbZcWa[ed[ towards technically and service wise is to say how do we los and making sure, at a minimum, that your groups are ijhWj[]_YZ[Y_i_edeh_dl[ij_ded[fWhj_YkbWhWh[ become a place where a company can turn to and really communicating and agreeing that it’s one customer. je_cfhel[j^[_hckbj_#Y^Wdd[bYWfWX_b_j_[i"^em feel confident about delivering communication digitally, We’re at the point now where we are seeing our cus- mekbZoekWZl_i[j^[c5 being confident that all of that relevance is being incor- tomers do this because they recognize that it must be Seeley: Well I’m obviously biased about email. But I porated intelligently. done. Our CustomerSelect solution, for example, incor- would say remarketing is a must. Remarketing programs >emckY^e\oekhYkhh[djmeha_dlebl[ih[jW_b porates a mutli-channel strategy. Many of our customers are highly valuable and can return up to 5 times higher Yb_[djiWdZh[jW_bWffWh[bYb_[dji5 are saying, “before I deliver that email, I need to know ROI. Remarketing programs are a combination of web Seeley: The effectiveness of permission-based email if they bought in the store, if they bought online, what analytics and email. Using web behavioral data with your marketing spans across all industries, it isn’t industry are they buying, what have they bought, etc.” There are email programs, marketers can encourage customers to specific. CheetahMail’s client base is representative of two ways to do that. First, there’s our integration with complete transactions by reminding them of items left in the world’s most recognized brands across every indus- their customer database, which we do very effectively by their cart or perhaps sending an incentive for customers try, however we have strength in retail, a fact we’re very taking the response data from email and then closing the that were browsing particular items. These are often lost excited about. When people take their programs serious- loop with that customer database. But oftentimes those opportunities that now enable marketers to re-engage, ly and look at email and ask how they can get the most marketers don’t have as quick an access to a customer da- complete sales and drive conversions. out of it, those clients tend to be the best relationships we tabase as they need in order to be as nimble as they can in And one last thing. When you look at email, the have. We do a lot of firsts on the technical side and it’s a the online world. And so they say, “OK CheetahMail, how channel has such potential upside. Everyday market- very technology-driven channel and retailers are what we can you help us with this?” ers should challenge themselves to think one-to-one, consider to be the first adopters of technically advanced We’ve devised an entirely new technology platform and to make every communication as individualized programs so there is a synergy there. Our people are al- that allows the marketer to give us that transactional as their customers. ways innovating. We’re great listeners. data. Let’s get that web data in there so when we cut that Relevance is key to deepening customer loyalty for We work with some of the most recognized brands in email segment on Tuesday, we’re incorporating their years to come. Think relevance.

Disjt!Qbsbezt{!jt!DFP!pg!QN!Ejhjubm!boe!Tv{z!Tboecfsh!jt!uif!dpnqbozÖt!Nbobhjoh!Ejsfdups/!! R QN!Ejhjubm!jt!b!mfbejoh!joufsbdujwf!nbslfujoh!bhfodz!boe!b!cvtjoftt!voju!pg!Qbsbezt{Nbufsb-!! |~'B bo!joevtusz!mfbefs!jo!dvtupnfs!bdrvjtjujpo!tusbufhjft!jowpmwjoh!pomjof!boe!pgàjof!nfejb/! B[jÊiX[]_dm_j^iec[XWYa]hekdZedj^[YecfWdoWdZ_jiXki_d[ii$ lot of turnover requiring real scale. Sandberg: PM Digital is an online division of ParadyszMatera. We provide tradition- Paradysz: In the context of search generally, you have the same challenge. Like a al agency services and search engine marketing. For the agency side of the business, we retail store, you’re changing your merchandise constantly and the technological capa- generate sales using the most appropriate online media channel and creative tactic. For bilities are a critical requirement. When you have the apparel component and add the example, our publishing clients ask us to monetize their content using Internet market- fashion twist, you have tremendous turnover. From the technological point of view, the ing tactics. For our online retail clients, we primarily manage their paid search cam- system has to be fast and simple. paigns, data feed marketing programs, such as participating in the com- Sandberg: We also have to manage inventory so even if we are doing par- parison shopping engines, and search engine optimization; with data feed ticularly well selling certain merchandise, we have the same inventory con- marketing, clients send us data files with all of their SKUs and information straints as in catalog and other channels. It’s another complexity we have to pertaining to the SKUs and we send that out to various shopping portals. be constantly on top of. Once an advertiser has submitted the data feed, they can then appear in the Paradysz: We call this “warehouse to web” technology. In the context of search choices on these online shopping destinations. the retail apparel market we use the word “impeccable” when we describe >emckY^e\oekhYkhh[djmeha_dlebl[ih[jW_bYb_[djiWdZh[jW_b our service because we have to be on top of our clients’ marketing game, WffWh[bYb_[dji5 their merchandising game and fashion trends. We can’t just react to the Sandberg: About 75 percent of our clients are online retailers and about half of those trends; we have to anticipate change in the market because that will affect how we are apparel. Apparel is a big part of our business and has unique challenges. One of the market. things that differentiates us is we have the technical capacity to handle the high turn- >emmekbZoekZ[Ód[ckbj_#Y^Wdd[bcWha[j_d]5 over with trendy apparel merchandise. Large retailers have huge volumes of turnover Paradysz: We define it as the business of marketing capturing the measurements of in a steady frequency. If you’re dealing with a client that has 10,000 SKUs and you’re transactions across multiple channels. The Internet changed everything because now feeding to 20 different shopping destinations, which is what we do for clients, that’s a customers can do anything, anytime, anywhere. So the capture part of this is huge. 4QFDJBM
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Then you have to figure out how to measure it in order to finely segment the audience. tracked, and reported on and switched out. If you don’t know how to employ your dollars. You have to see all of it >emYbei[_ih[jW_b_dWY^_[l_d]h[Wb#j_c[" keep your technology up to date, you can’t participate from your customers’ point of view. jhWdifWh[dj"ed[l_[me\j^[Ykijec[hWYheii with the new offerings search engines put forward. We M^WjWh[j^[ceiji_]d_ÓYWdjY^Wd][ioekÊl[i[[d WbbjekY^fe_dji5 don’t outsource our technology, we build it ourselves. _dckbj_#Y^Wdd[bcWha[j_d]el[hj^[bWij\[mo[Whi5 Paradysz: The media reports say it’s getting better all the With regard to automated search bid technology, let’s Paradysz: One of the significant changes is broadband time, but in reality it’s not that great. The consumer begins say we have a client where we are managing 50,000 key penetration. It has changed the game from the Internet by assuming that the retailer has their act together. They words and the bids change on an instantaneous basis. being a transaction-based relationship to being a mar- think everyone talks to one another but they continue to The automated bid management system lets us system- keting opportunity. experience a very different reality. Until many of the inter- atically call into the search engine and grab the bidding Sandberg: Also, the customer is in control. So many nal organizational issues get solved, the channel problems information, figuring out what the optimum bid can be companies try to force a particular activity on a customer of recognizing customers will continue. based on our clients’ ROI metrics. We can then change by channel. You have to provide choice to accommodate in OekiWoj^WjÓdZ_d]WdZZ[l[bef_d]Ykijec[hi the bids for everyone, automatically, en masse. It’s a lot which channel the customer wants to make the purchase. _iXej^WdWhjWdZWiY_[dY[$MekbZoek[bWXehWj[ more efficient than trying to manage bids manually. Paradysz: Also, you can’t downplay the impact of search edj^_i5 The art of what we do, unlike other forms of direct and how that changed behavior. Search sophistication Sandberg: With search, you need technical sophistica- marketing, is knowing specific merchandise, because has evolved rapidly both from the technology standpoint tion in order to process data. It comes down to the fast- that is the basis for the ad copy and everything we do. and the user. And another major change is the ability to est, best technology to make sure everything gets listed, The apparel industry has very specific language that we have to know. Paradysz: The art is the nuance of understanding the consumer. You cannot outsource apparel to a com- pany that does not under- stand these particulars. And there are so many global cul- tural idiosyncrasies. We hire people to follow this from a trend standpoint. J^[h[_iWZ_iYedd[Yj jeZWo_dj[hcie\W YecfWdoÊiWZl[hj_i_d] if[dZWbbeYWj[Zje edb_d[li$e\Ô_d[1 fWhj_YkbWhbom^[dedb_d[ _iWYYekdj_d]\ehceh[ WdZceh[e\el[hWbbiWb[i XkjdejWYYekdj_d]\ehW i_c_bWh_dYh[Wi[_dedb_d[ WZif[dZ$>emZeoek l_[mj^_i5 Paradysz: Many often think about offline efforts driving business to online but they don’t often think of the reverse. You need to understand both sides, the movement from one source to the other and the value of an incremental customer; and then using that data to decide where to spend your marketing dollars. Tradi- tional advertising is very ex- pensive and online is highly efficient and cost effective. In general we are however, seeing increased budgets for online. <_dWbbo"_\j^[h[m[h[ed[ Z[Y_i_edehed[Wh[Wje _dl[ij_dje_cfhel[W h[jW_b[hÊickbj_#Y^Wdd[b cWha[j_d]YWfWX_b_jo" ^emmekbZoekWZl_i[ j^[c5 Sandberg: When I go to the trade shows, I see some of the most incredible tech- nologies; every single one of them would radically im- prove the online businesses of so many marketers. If I had to pick one, again recog- nizing the fact that you have limited resources, I would put my money on web ana- lytics because that provides you with a roadmap as to what the issues are. Paradysz: You should be willing and be brave to look deeply and objectively at all your sources of advertising. Be willing to integrate your offline and online market- ing. The value of integration is geometric. WWD, MONDAY, SEPTEMBER 17, 2007 25 WWD.COM Chinese Art Attracting Global Eyes By Andrew Yang On opening night, Contrasts Gallery owner and so- cialite Pearl Lam threw a dinner for 250 guests, a lavish SHANGHAI — If there was ever any question whether affair that included drag performers and where dinner the red-hot market surrounding contemporary Chinese wasn’t served until around midnight. [For more about art was fact or fiction, the recently staged art fair Lam, see sidebar.] Guests included Chinese socialite ShContemporary put the hype to the test last weekend. Bao Bao Wan, Shanghai Tang creative director Joanne Art galleries are only the latest companies seeking to Ooi and Miami developer Craig Robins, a major col- tap into the growing Chinese market for luxury goods. lector who was instrumental in giving life to Art Basel As the number of millionaires increases, construction Miami Beach and recently, Design Miami. “I love it here from Shanghai to Shenzhen runs amok, expensive res- in Shanghai,” Robins said just before heading up to din- taurants are packed every night and luxury brands open ner. “I’m here in China just about every month.” stores even in secondary cities, everyone is hopping During the fair, exhibitors were treated to a host of onto the train of China’s economic boom. openings at 50 Moganshan Lu, the warehouse district ShContemporary, held from Sept. 6 to 9, was founded of galleries that is Shanghai’s current gallery epicen- by former Art Basel director Lorenzo Rudolf and took over ter, and a performance at a local club by the Chinese just about every inch of the massive 40,000-square-foot rock band Second Hand Rose, sponsored by Beijing Shanghai Exhibition Center, an ornate, Baroque building Art Now Gallery. On Sept. 7, Hermès hosted a party at built by the Russians in the Fifties. With more than 100 the Shanghai Art Museum to unveil “Tales of the Silk,” galleries and ambitions of becoming an Art Basel-esque an exhibition about the silk trade in China, featuring art world destination, ShContemporary mixed established scarves designed by Chinese artist Ding Yi, products the local galleries such as Contrasts and ShanghART with luxury goods house will be carrying only in China. blue-chip names from London and New York, including At the fair, most gallerists reported a healthy amount of Marlborough, James Cohan and the Albion Gallery. There traffi c, with a large number of Asian collectors from Hong also were galleries from Seoul, Taipei and New Delhi. Kong, Singapore, Japan and Taiwan. Many gallerists noted Days before the fair had offi cially begun, parties and the strong presence of collectors from South Korea. “The openings were happening all over Shanghai, further rhythm of the fair has been quite bizarre,” noted Elena Koh. “We came here because it’s been a priority for us to heightening the booming Chinese city’s already frenetic Bonanno di Linguaglossa of London’s Albion Gallery. get a grip on the Asian market,” said Nixdorf. atmosphere. Two days before the opening, the fair’s ar- “Usually you have collectors in the fi rst few days and they Galleries said most of the artworks sold were priced in tistic director, Pierre Huber, hosted a cocktail party for snap up everything, but it hasn’t been quite like that here.” the fi ve-fi gures, although a few reported sales in the six- exhibitors at Glamour Bar, located on Shanghai’s his- The fair included a large stand for the auction house and seven-fi gure range. At James Cohan, a large mixed- toric riverfront district, the Bund. Phillips de Pury, which was preparing for a major auc- media piece by Nam June Paik, “From Neader Valley to tion of the Howard Farber collection of Chinese art next Silicon Valley,” went in the mid-$400,000 range, while month in London. “It’s been a great place for network- Tokyo’s SCAI The Bathhouse said it sold Anish Kapoor’s ing,” said Jean-Michel Placent, Phillips de Pury’s world- “Parabolic Mirror — Tamekuro” in the mid-$500,000 range. wide director of private sales. The stand showcased only New York dealer Max Lang, who had on offer a selection of a small selection of works from the collection, including Pop Art as well as a Jean-Michel Basquiat piece priced at pieces from Ai Weiwei and Wang Guangyi — none of $9 million, reported the sale of Tom Wesselmann’s “Sunset which are for sale until the auction, which is expected Nude, CD 87,” which had an asking price of $1.2 million. to fetch anywhere from $7 million to $10 million. Lorenz Helbling, director of ShanghART, the longest- The Albion Gallery brought its stable of Asian artists, running contemporary gallery in Shanghai, summed it up including Hiroshi Sugimoto, Mariko Mori and Xu Bing, best: “For many people, China was a very abstract thing all of whom are quite established. Its approach was the before. It used to take a year or two just to get the proper opposite of other Western galleries, many of which didn’t contacts, but with the fair, you can court major collectors focus on Asian art at all. “We made a clear decision to in the course of one or two days. It’s still an early stage for bring our best artists to China,” said Jutta Nixdorf, direc- a lot of things, but the fair looks good, and the galleries are Works exhibited at the tor of de Pury & Luxembourg in Zurich, which showed a selling. Educating the public on contemporary art is im- ShContemporary art fair. Charlotte Rampling portrait by Helmut Newton and sev- portant here; museums do it, but not enough. So galleries

PHOTOS BY CHINA PHOTOS/GETTYPHOTOS BY IMAGES eral pieces by rising Chinese-American art star Terence have to do it, and art fairs have to do it.”

P.L.: Let’s say that I think Chinese art will always be — I hope — Chinese. Gallery Owner’s Goal: East Meets West If Chinese will become Western, then we are talking about homogenous cul- or the last 15 years, Pearl Lam, the happened because Asian art has become ture, homogenous expression. And so I Fmercurial socialite and art world a focus. And secondly, Chinese art now is think it’s important for the Chinese to patron, has presided over Contrasts, the being collected by a lot of Westerners. be strong, and to show the West what gallery that exhibited an impressive ros- Chinese sensibilities are. What are ter of Chinese artists well before their WWD: Who are the collectors who are we Chinese creating? It’s easy to try to current popularity. A regular presence coming to China for the fair? please on international curatorial stan- on the international art fair circuit, Lam P.L.: Shanghai is hot, and China is hot. dards, to adapt to their eye, to adapt to is easily the most fashionable doyenne The people who are coming are people their thinking and just join international of the Chinese art scene, perhaps due to who have never even been to China, and shows. But Chinese art is not just about the extensive exhibition program of her they are coming here for the fi rst time that. I think there is very strong tradition three galleries, one in Beijing and two ever. The galleries are bringing artists being reinvented in much of the work. in Shanghai, and the dinner parties at like Damien Hirst and Andy Warhol; her penthouse apartment in Shanghai they are aiming to develop a discern- Pearl Lam WWD: What do you think is fueling this — at a table that seats 64. “Contrasts is ing Chinese clientele. There are Korean heated art market? one of the two most important galleries galleries who are going to do an Andy ing traditions, creating a synthesis using P.L.: I call this phenomenon import art in Shanghai,” said ShContemporary’s Warhol show. All of a sudden there’s Western expression, Western media. and export art. For hundreds of years director, Lorenzo Rudolf. Asian wealth, and there’s high dispos- since the Qing dynasty, we have local Prior to the opening of ShContemporary, able income. And Asian people recog- WWD: But is that really happening? art, and we have export art. Export art and two days before she would host a din- nize Western art labels, names, as much P. L . : That’s always been happening. is to cater for the Western tastes. And we ner for 250 guests at her private club in the as the Western collectors know about There always has been Chinese tradi- have local art for local tastes. We don’t city’s French Concession, Lam discussed Chinese arts — they know them as la- tional-art thinking. Even if you look at say what’s good or bad, we say every- Chinese art with WWD. bels, or names. So that’s how it looks to Zhang Xiao Gong, who paints fi gures thing is all based on respect. We respect each other. I think it’s a great time to in whiteface, the whole composition is your taste; we hope you respect our WWD: Why do you think it’s taken so see what is happening. based on ancestral painting. And also, I taste. And we always have this trend. long for a contemporary art fair like think there is a misconception between So now, most artists are creating export ShContemporary to come to Shanghai? WWD: Being that you see it both as a West and East. Now, all of Chinese art art. The artists know a lot of collectors Pearl Lam: I think this is the fi rst interna- gallerist and a collector, do you think all is based on a Western point of view, be- are Western, so they really are creating tional fair in Asia, so it’s not just limited the hype surrounding Chinese art nec- cause the structure of the Western way work for that market. So all of a sudden, to Shanghai. They had one that was not essarily means the art is good? of looking is always based on conceptu- it becomes export art, unknowingly. as serious in Hong Kong some years ago, P.L.: I have to admit, Chinese art is very alism. But we don’t have conceptualism. around 1994, and it was a failure. And I fashionable. When you go to a collec- All of these artists are creating work WWD: What do you think will happen think the reasons why it never happened tor’s house, you see a Chinese painting, out of their sentiments, their passion, to the work that’s being created in this in this region is because art collecting is whether it’s in England or America. You their emotions, which is completely the climate? very different, especially with regard to get a little bit scared because it’s so fash- opposite of objectivity. The true real- P.L.: I always believe that what goes up the Chinese, and especially with what you ionable. It’s cool to have Chinese con- ity — and I did a little research into it will always come down. There will be a see on the auction market. It used to be temporary art. I also believe that most — is that whether it’s Indian, Japanese market correction. We’ll have to see. A Chinese porcelain commanded the high- of the collectors today are only picking or Korean art, the artists are creating lot of these artists were creating their est prices. This is what Chinese collec- art that is talking about politics, or is things out of sentiments, emotion. best work in the early Nineties, but they tors usually buy. All of a sudden there is political. And that they identify Chinese didn’t evolve. And I think it’s really dif- a difference between fi ne art and decora- contemporary art as [paintings that fea- WWD: Do you think Asian art will fi cult for an artist to evolve, because you tive art. Traditionally, we didn’t have that. ture] the big laughing face. Art is not change drastically in the next few are scared of losing your audience. Having said that, I think the art fair has about just politics. It is about reinvent- years? — A.Y. 26 WWD, MONDAY, SEPTEMBER 17, 2007 WWD.COM/CLASSIFIEDS

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Midtown well Mid-town apparel importer seeks an known brand. Must hang with Paris experienced Production person who is Blues, Paco, etc. [email protected] strong at managing private label ac- counts. Good benefits. Fax or email resume to: ACCOUNT EXECUTIVE - Handbags Designer $80-90K Strong current exp 212-471-0330/ [email protected] in mens sportswear. Will assist head Established 7th Ave. Accessories Co. seeks a candidate with a designer w/ interpreting sportswear successful track record of driving sales with Major Specialty from mens outerwear inspirations. Stores. Ideal candidate will be Detail Oriented, Organized, Mens outdoor fashion vision required. Accountant/CFO from $110-$140K [email protected] RECEPTIONIST Motivated Individual w/ Strong Computer Skills, Responsible Strong exp in apparel co req’d. 34th St. Dress company looking for exp’d for Sales Tracking, Maintaining appropriate stock levels and Accountant/Controller to $110K. Min receptionist. 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Monthly statements, fashion school required. Email resume : resumes and salary requirements in Audit. To inquire, please contact: collections, financial statements, A/P, [email protected] confidence to: [email protected] A/R, journal entries, etc. Midtown co. [email protected] Email: [email protected] Designer Associate to $60K. Min 2 yrs exp ACCOUNT EXECUTIVE in intimate apparel. Bergen/Hudson PLUGG, a leading Juniors/ Girls sports- Seeking Manufacturers Admin Since 1967 County, NJ area. Strong career oppty. wear company seeks an experienced Women’s Clothing Importer seeks W-I-N-S-T-O-N Email: [email protected] sales representative with already est’d Sweater, Knit & Woven manufacturers/ Sales Assistant mid-tier store (i.e. Kohl’s, JC Penney, GLORY CHEN agents from China based in NY. To Kidrobot (creator/retailer ltd edition Sears…) contacts and positive relation- APPAREL STAFFING Designer Head $125K to $175K BOE. toys/apparel) seeks sales asst to sup- ships. 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Must be SALES ASSISTANT Dist Mgr /Florida base/Jewelry co $70k+ Fax resume 212-947-4501 or Corporate Gifts/ Accessories mgr $70k+ & Accessory experience able to work independently, possess great Email: [email protected] Leading Children’s Wear Co. is seeking DENIMS TO SELL follow through skills and have the ability a self-motivated, analytical, and detail Forecast Planner/Retail exp $50k+ Store Manager is responsible for Large Lots, Lots of Denim Fabric. to flat sketch & illustrate. The ideal oriented Sales Assistant. Strong comput- Camo Available. Cheap Prices. candidate will have experience in both er skills a must. Please Fax all resumes overseeing sales, human resources, General and Divisional to Brad at: 212-764-5826 or E-mail to: 1.877.DENIM.TO.SELL wovens and knits, with focus on inventory control, merchandising, print/embroidery development. Proficiency in Merchandise Managers bchananie@generalsportwear. com Illustrator and Photoshop required. Are there any real merchants left out providing outstanding client service, Fax Resume Attn: JN (212) 302-1856 there who love this business? Fast and maximizing profits by controling PATTERN/SAMPLES growth company seeks senior level Sales Executive expenses. Store Managers are held Reliable. High quality. Low cost. Fast retail executives with a vision. Must be TAILOR $70-80K. Strong exp in bridge or couture womens ready-to-wear co. Est’d. brand name NYC Dress/Sportswear directly accountable for their individ- work. Small/ Lrg production 212-629-4808 ASSISTANT DESIGNER ambitious risk takers possessing a Co. seeks an exp’d., aggressive, and Large public company seeks an Assis- point of view, seeking change and the req’d. Full-time perm only. Well known ual store’s financial results, and are designer. Call: 973-564-9236 or email: motivated Sales Executive. Must have tant Designer for fast paced, high power to drive it! Email resume to: strong, well est’d. contacts with national responsible for recruiting, staffing, Patterns/Samples/Production energy private label Womenswear divi- [email protected] [email protected] Any Style. We do Bridal/Evening Chains, Department Stores, and Specialty and developing all employees. Please sion. Candidate must have excellent Accounts. Great business opportunity Gowns custom made & wholesale. flat sketching skills & be proficient in 415-956-6098 Call: 212-278-0608/646-441-0950 Graphic Artist $45-55K. Min 1 yr exp in for the right person. Fax: 516-829-7881 Fax resumes to: Photoshop/Illustrator. Excellent benefits. Illustrator, Photoshop. Able to Fax resume to: 212-556-5429 layout planograms. Sketch on CAD. PATTERNS, SAMPLES, Bergen/ Hudson County, NJ area. Email: [email protected] TECH DESIGNER PRODUCTIONS Assistant Tech Designer Fast paced women’s apparel importer All lines, Any styles. Fine Fast Service. Infant apparel co. seeking organized & w/great benefits seeks experienced, Call Sherry 212-719-0622. motivated asst tech designer w/strong responsible candidates. excel experts. SALES EXECUTIVE communication skills. Proficiency in Must work well under pressure w/sense In Vogue Studios, an excellent full service Illustrator is a must. Excellent benefits. of urgency. patt making exp., grading, CAD+Hand Studio is expanding again. PATTERNS, SAMPLES, Email resume to: [email protected] GRAPHIC/BELT DESIGNER strong communication skill in fit correc- Seeks a self-starting individual w/ strong 7th Avenue Accessories Company tions and technical sketches. Private relationships + experience in textile PRODUCTIONS seeks Graphic/Belt Designers. Must be label experience a plus. PLEASE FAX service work. We offer opportunity Full service shop to the trade. fashion driven, detail oriented, organ- OR EMAIL RESUME TO: 212-302-3872 for growth w/ competitive Sal. & Ben. Fine fast work. 212-869-2699. ASSOCIATE DESIGNER Contemporary Collection Large public company seeks an experi- ized, professional, proficient in MAC, or [email protected] Fax resume to: 212-947-4501 or E-mail enced Associate Designer for fast Adobe Illustrator and Photoshop. Must [email protected] Seeks Independent NY PTTNS/SMPLS/PROD paced, high energy private label have comprehensive sketching ability TECHNICAL DESIGNERS $HI Sales Rep High qlty, reasonable price. Any de- Womenswear division. Candidate must and 2- 4 years experience. We offer 1) Missy-Jrs.-Kids 2) C/S Knits or Wovens competitive salary and benefits. L.A. based women’s collection needs sign & fabric. Fast work. 212-714-2186 be creative, organized, and able to 3) Sweaters 4) All Level Positions representation for East Coast/Mid-West multi-task. Photoshop/ Illustrator a Fax or e-mail resume with salary Call B. Murphy(212)643-8090; fax 643-8127 territories. Applicants should have proven must. Excellent benefits. requirements in confidence to: Trimming Sales boutique, specialty, and better Dept. Store Fax resume to: 212-556-5429 contacts. Email: [email protected] 212.947.4439 or Financially stable Trim Co. seeks Sales- [email protected] Technical Design to $50K Strong on person w/minimum 5 years experience & ASSOCIATE DESIGNER to $80K Illustrator req’d. Exp in creating tech pkgs existing accounts w/Domestic & Interna- New York Rep Dresses & Sportswear, Prod Dev Inventory Manager $40-50K. Mdtn co. & working tech packs through to sending tional resources. Excellent compensation California based high end resort and [email protected] Must have strong exp in Excel/AS400. to Far East. Chinese or Korean bi-ling package. Please E-mail all resumes to: cover-up line seeks New York Rep. Must Investing Partner Wanted Min 2 yrs exp in invntry procedures. helpful not nec. [email protected] [email protected] be an energetic, seasoned, self motivated Due Maternity #1 ranked online maternity Fast paced. Email: [email protected] professional with 5+ years exp. to grow Bookkeeper-Full Charge existing business. Call: 323-581-5997 website seeks strategic investor. Midtown Ladies sportswear mfgr/ im- 415-310-1637 / Al@DueMaternity .com porter. Must be computer literate, LC ITALIAN BI-LINGUAL Textile Cad Artist experience and well versed in dealing Expert in Photoshop 2 + years with chargebacks. Lucrative opportu- FABRIC MANAGER $125-150K exp, textile design skills a must. nity. Fax in confidence attn Nicholas: [email protected] 212-947-3400 Sal + ben. Fax resume 212-947-4501 212-921-8369 Email: [email protected] Office Assistant BUYER $100K Licensed apparel & accessory company NYC Apparel. Great Company! seeks organized individual. Duties in- Titanium Marketing Inc. 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Charge Back Clerk [email protected] •EDI Data Entry Clerk: Must be dili- Leading brand & private label Co. im- gent & detailed to handle EDI orders mediately seeking high exp’d w/ Production Assistant & invoicing. Must type accurately & charge backs, disputes, paybacks. At Menswear Import Company looking quickly, 45-60 wpm. Exp necessary. least 3+ yrs c/b exp. with Major depart- for dedicated & detail oriented produc- Will not train. Qualified persons only. ment store and factor. tion assistant. 3+ yrs experience req. Fax resume to: 212-889-8863 or fax resumes to: 212-221-0368 Fax resume to: 212-840-1626 email: [email protected] ATLANTA BALTIMORE BOSTON CHARLOTTE CHICAGO CLEVELAND DALLAS DETROIT GREENSBORO LOS ANGELES NEW YORK BIRMINGHAM HONG KONG KRAKOW LEEDS LONDON MANCHESTER TORONTO WARSAW

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