SULLIVAN’S PAY PACKAGE/2 BERLIN FASHION WEEK/SEC. II WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • July 9, 2007 • $2.00 Accessories/Innerwear/Legwear Val Gal ROME — Talk about la dolce vita. Valentino celebrated his 45th anniversary as a couturier with a beautiful all-out extravaganza in the Eternal City that featured his fall couture show, a retrospective and two galas, held at the Temple of Venus and the Parco dei Daini at the Villa Borghese. Here, one of Valentino’s stellar beauties, Uma Thurman, wearing the designer’s fl ounced, embroidered dress at the ball on Saturday night. For more on the weekend festivities, see pages 4 to 7. Luxe Goods on the Fly: Accessories Brands Tap Travel Retail for Growth By Katya Foreman PARIS — Leather goods are set for takeoff in the travel retail sector, traditionally known for sales of perfume, liquor and tobacco. Airport retailers and brand executives said that even though they are weighed down by luggage, travelers are still willing to splurge on that extra bag, regardless of the price tag. And airport operators are zoning in. For example, last November, British Airports Authority introduced its first concept area for fashion accessories, the World Duty Free Collection, in Gatwick North Airport in London. See Bags, Page10 PHOTO BY STEPHANE FEUGERE PHOTO BY 2 WWD, MONDAY, JULY 9, 2007 WWD.COM Rumblings Boost Macy’s, Target Stock By Vicki M. Young chise and real estate assets, all openly on the auction block, WWDMONDAY of which Macy’s has. She added said Loeb. He said with so much Accessories/Innerwear/Legwear NEW YORK — Shares of Macy’s that Macy’s would give Sears money in the market waiting to Inc. and Target Corp. each another platform on which to be invested, nearly every com- gained more than 5 percent in sell apparel on top of Sears’ pany was an acquisition target. FASHION trading Friday on the New York namesake and Kmart stores. Augustine, in a research note Valentino threw himself an anniversary party in Rome over the weekend, Stock Exchange, the former on a Shares of Macy’s spiked last month, wrote that a lever- 4 replete with dinners, a retrospective and a fall couture show. recurring buyout rumor and the last month on buyout talks, aged buyout in the low $50s for latter on possible action from an then retreated. At the time, Macy’s was “feasible.” Macy’s GENERAL activist hedge fund. traders said talks of a buyout owns 68 percent of its real estate ACCESSORIES: Leather goods are set for take off in the travel retail Macy’s closed the day up by Kohlberg Kravis Roberts, — 54 percent fully, building and 1 sector, traditionally known for sales of perfume, liquor and tobacco. 5.3 percent, at $41.86, on rum- Providence Capital and land; 14 percent of the owned blings that billionaire investor Goldman Sachs at $52 a share stores are on leased property, Retailers and textile and apparel manufacturers all trimmed payrolls last Edward Lampert, the chairman fueled speculation that helped the analyst wrote. 20 month, bucking the overall U.S. employment trend. of ESL Investments that bailed bolster Macy’s stock price. But As for Target, its shares rose Badgley Mischka is diving into swim as the fi rst fashion show in the Kmart Holding Corp. out of several banking sources at the 5.9 percent Friday, to $68.01, tents at the Mercedes-Benz Fashion Week Miami Swim Show. bankruptcy and then later en- time didn’t give the buyout talks with 27.9 million shares traded, 20 gineered the merger of Kmart much credence. compared with a three-month Berlin Preview is included in this issue as a Section II. and Sears, Roebuck & Co., might “I don’t think it’ll happen. average of 8.3 million. Classifi ed Advertisements.............................................................21-23 have intentions to acquire the The merger certainly hasn’t Market speculation was that department store giant. The gone as well as expected. activist hedge firm Pershing To e-mail reporters and editors at WWD, the address is fi rstname. speculation in the market was Macy’s is doing some things Square might file a Form [email protected], using the individual’s name. specifi c enough to include today regionally that it had hoped 13D with the Securities and WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT as a deadline for bids, although to centralize. They are behind Exchange Commission to force ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Macy’s has never said it is for schedule and certainly are Target to sell its credit-card VOLUME 194, NO. 5. 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 sale. The three-month average upset at themselves, but I don’t business. Pershing, run by Bill additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance trading volume of Macy’s shares think they would sell,” said Ackman, typically takes long Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by is 6.8 million, but that jumped Walter Loeb, former Wall Street positions in companies and 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 Friday to nearly 13 million. retail analyst and now a consul- then tries to push management Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail “If you’re looking at why tant with the fi rm that bears his to take action to provide value Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return would Sears Holdings buy name, on Friday. to shareholders. According to undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: Macy’s, a number of boxes The purchase of Harrah’s Augustine, the sale of Target’s SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE would check off,” said Bear Entertainment by TPG and credit-card business would re- INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit Stearns analyst Christine Apollo Management, which still sult in a recapitalization of its www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new Augustine, who noted that has to close, is another indica- balance sheet. subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, Lampert likes businesses that tion that buyout fi rms are tar- — With contributions please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other have strong cash, brand fran- geting companies that are not from Erica Owen Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR New Talbots Boss Signs Hefty Pay Deal CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY rudy F. Sullivan has landed a big pay package compensation will cost the company approximate- A SELF-ADDRESSED STAMPED ENVELOPE. Twith Talbots Inc., where she becomes presi- ly 8 cents to 10 cents a diluted share in the 2007 dent and chief executive officer on Aug. 6, suc- fi scal year. TUESDAY: Hong Kong Spring-Summer Fashion Week ceeding Arnold Zetcher. One of Sullivan’s fi rst big decisions will be to (through Friday). The 57-year-old Sullivan, formerly president select a new chief merchant to succeed Harold of Liz Claiborne, signed a four-and-a-half-year B. Bosworth Jr., who said last week he was retir- WEDNESDAY: Swimshow, Miami Beach (through employment contract with Talbots. According to ing after a decade with the company. A search for Sunday). a Securities and Exchange Commission 8-K docu- his successor has begun. It’s likely there will be ment fi led last week by the Hingham, Mass.-based additional management changes after Sullivan THURSDAY: Mercedes-Benz Fashion Week Berlin Talbots, Sullivan will receive: takes the helm. Bosworth continues as execu- (through Sunday). ● An initial annual base salary of $1 million, to tive vice president and chief merchandising of- The U.S. Commerce Department releases the May for- be reviewed annually for increases. fi cer until July 27.