KATE INPERSON EXPECTATIONS AERIN LAUDER BUILDS AS HER BABY BUMP GROWS, HER OWN BRAND. DESIGNERS SUGGEST IDEAS SECTION II FOR WHAT THE EXPECTING DUCHESS OF CAMBRIDGE MIGHT WEAR. PAGES 6 AND 7 BOWING TO PRESSURE Bangladesh, Retailers In Key Safety Steps By KRISTI ELLIS and MAYU SAINI IN A MAJOR VICTORY for labor rights activists, the Bangladesh government on Monday granted the right of workers to form trade unions in the core textile and apparel industry. The move came in a day of dramatic developments TUESDAY, MAY 14, 2013 Q $3.00 Q WOMEN’S WEAR DAILY as fi ve of Europe’s largest retailers — H&M, Inditex, C&A, Primark and Tesco — agreed to sign a binding, WWD fi ve-year fi re and building safety agreement covering hundreds of factories and thousands of garment work- ers in Bangladesh. The decision came in the wake of one of the worst industrial accidents in history as the collapse of the Rana Plaza garment factory building in Savar, Bangladesh, has now claimed the lives of 1,127 people. The companies said Monday they will sign on to a new agreement called the “Accord on Fire and Building Safety in Bangladesh” with labor unions that requires that companies mandate and pay for reno- vation and repairs to ensure factories in Bangladesh are made safe, among other provisions. Noticeably missing from the new group of com- Q’s panies agreeing to sign the accord on Monday were U.S. retailers and brands. PVH Corp., owner of Calvin Klein and Tommy Hilfi ger, which signed the origi- nal agreement last year along with German retailer Tchibo, is the only American company to date that has signed the accord. PVH said Monday it has agreed in principle to sign the revised agreement and will com- mit up to $2.5 million to underwrite the program. That The agreement is a legally enforceable pact with unions, including IndustriALL Global Union, UNI Global Union and numerous Bangaldeshi apparel unions. Nongovernmental organizations including the Worker Rights Consortium, Clean Clothes Campaign, International Labor Rights Forum and Maquila Solidarity Network will sign the accord as witnesses. Girl? The new agreement is a legally enforceable con- tract between brands and retailers and unions, which QMack, The Jones Group Inc.’s new will go to binding arbitration to resolve disputes. It homegrown brand for Millennial stipulates that companies will agree to independent shoppers at Macy’s Impulse SEE PAGE 3 departments, launches in August with a charming mix of items meant to be IPO Fever Heightens combined in multiple ways. Here, one look from the collection: a polyester and By VICKI M. YOUNG rayon faux-leather bomber over a cotton GET READY for IPO fever. sweater and polyester and wool skirt. According to IPO Boutique, which tracks initial For more on QMack and other new public offerings, there were 143 active IPOs in the pipeline as of Monday, covering all sectors. Macy’s exclusives, see pages 4 and 5. The fashion world is right in the mix, and one of the fi rst out of the gate could be a $700 million IPO for Coty Inc., which could hit the market as early as next month. Coty fi rst fi led to go public last May but then pulled those plans. An updated fi ling of its plans, an S-1/A with the Securities and Exchange Commission, appears imminent. Also in the pipeline is Claire’s Inc., the teen acces- sories retailer acquired in 2007 for $3.1 billion by pri- vate equity fi rm Apollo Management. Claire’s on May 3 fi led to raise $100 million in an IPO. The fi ling said proceeds will be used to repay debt. Others are said to be eyeing the stock market for fashion companies, although they haven’t fi led their shelf registrations. As reported, private equity firms TPG Capital and Warburg Pincus are studying an IPO option for Neiman Marcus Inc. as they seek to cash in on their investment. Credit analysts have been saying that Bain Capital is also considering an IPO as an exit strategy for Burlington Coat Factory. Kellwood Co., which is owned by private equity fi rm Sun Capital Partners, is said to be mulling a par- tial spin-off of its Vince unit. Vince has selected Goldman Sachs Group Inc. and Robert W. Baird & Co. to lead an IPO that could PHOTO BY JOHN AQUINO SEE PAGE 9 2 WWD TUESDAY, MAY 14, 2013 Ferragamo Q1 Profits Rise THE BRIEFING BOX month to the next, but the luxury market is showing By LUISA ZARGANI resilience,” said Norsa. “We definitely see a general IN TODAY’S WWD slowdown, especially versus very strong quarters in MILAN — Salvatore Ferragamo SpA saw net prof- the past.” However, Norsa touted the U.S. and Latin its more than double in the first quarter, driven by a American markets as “overperforming,” and cited solid performance worldwide and continued growth the fact that, in Brazil, the company bought back in its core footwear and leather goods categories. three retail stores and distribution. In the three months ended March 31, the International tourists helped lift sales in Europe Florence-based fashion house reported net profits by 10 percent. Norsa said there is “still good traffic” of 24.3 million euros, or $32 million, compared with in Europe, “sustained by travelers, who are still in- 12 million euros, or $15.7 million, in the same pe- creasing at a 4 to 5 percent rate.” riod last year. Including minority interests of 2 mil- Norsa also cited future developments in lion euros, or $2.6 million, as a consequence of the travel retail through hefty investments by air- buy-back of stakes in the distribution companies in lines in new airports in China, Thailand, Dubai, Greater China, Korea and South East Asia, profits Indonesia and Istanbul. rose 57 percent to 27 million euros, or $35.6 million, The unfavorable impact of fluctuations of the ODELS M compared with 17 million euros, or $22.2 million, in Japanese yen versus the euro contributed to an 8 per- Xxxxx. Xxxxx. PAGE X the same period last year. cent decrease in sales in Japan. At constant exchange, Hannah Noble, the RUMP T Revenues increased 9 percent to 282 million euros, sales would have been up 4 percent in that country. latest subject of or $372.2 million, compared with 260 million euros, or At the end of March, Ferragamo had 339 directly “Model Call.” For OF Xxxxx. Xxxxx. PAGE X $340.6 million, in the first quarter of last year. operated stores, while the wholesale and travel more, see WWD.com. The Asia-Pacific area continued to be the retail channel included 261 third-party operated COURTESY group’s main market, accounting for 36 percent of stores, as well as a presence in department stores sales, and totaling 102 million euros, or $134.6 mil- and high-level multibrand specialty stores. lion, up 6 percent compared with the same period The group’s footwear category grew 8 percent, last year. A major contribution came once again and handbags and leather accessories rose 13 per- Among the 143 active initial public offerings in the pipeline, from the retail channel in China, which posted 20 cent, together accounting for more than 74 percent Coty Inc. is expected to be the first out of gate for the fashion percent growth. of total sales. “Small leather goods showed a very and beauty world. PAGE 1 “China is still growing, in a different way. good contribution to profitability,” said Norsa. Second- and third-tier cities are showing stronger Fragrances rose 14 percent. Five of Europe’s largest retailers and brands have agreed to growth through local shoppers and travelers from Operating costs grew 3 percent, reaching 136 sign a fire and building safety agreement covering hundreds other regions in the country,” said chief executive million euros, or $179.5 million. of factories in Bangladesh. PAGE 1 officer Michele Norsa in a conference call with ana- Investments rose 20 percent to 10 million lysts. “Hong Kong, Macao and Australia are over- euros, or $13.2 million, mainly driven by new Macy’s has taken another leap forward in its quest to performing, while Korea and Singapore are show- stores and the enlargement and refurbishment of attract the Millennial male, launching a new private label for ing a mixed performance.” existing key locations. fall called the Bar III Carnaby Collection. PAGE 4 Sales increased 19 percent in North America and As of March 31, net debt stood at 33 million more than 13 percent in Central and South America. euros, or $43.5 million, compared with 22 million QMack, The Jones Group Inc.’s new brand centered around “We are doing business in a mixed scenario, euros, or $28.8 million, at the end of March of last 13 key items with the Millennial customer at Macy’s in mind, with an uncertain political situation in Southern year, as a consequence of the purchase of the mi- will launch on Aug. 1. PAGE 5 Europe, and the U.S. and Japan uneven from one nority stakes in Asia. The Duchess of Cambridge represents a growing set of pregnant women choosing to dress their bumps in nonmaternity wares. PAGE 8 Ck Calvin Klein Line to Be Re-branded Jos. A. Bank Clothiers Inc. provided investors with a disappointing glimpse at its first-quarter results, prompting a By LISA LOCKWOOD 7 percent decline in its stock. PAGE 9 FAREWELL, ck Calvin Klein. Condé-nologists have been wondering when Anna Wintour’s Calvin Klein Inc., a wholly owned subsidiary of name and new title, artistic director, would start appearing on PVH Corp., said Monday that it will re-brand the com- the mastheads of the company’s magazines.