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Wwd0516webrev.Pdf GOING WESTERN GRAPHIC BEAT BOLD PRINTS ARE CALYPSO ST. BARTH THE TREND IN MEN’S EMBARKS ON A MAJOR SWIMWEAR THIS PUSH INTO CALIFORNIA. SEASON. PAGE MW1 PAGE 2 SPLIT OVER BANGLADESH U.S. Brands Develop Own Safety Accord By KRISTI ELLIS WASHINGTON — There is no unity over Bangladesh. As even more European brands and retailers — along with a rare U.S. one, Abercrombie & Fitch — beat a midnight deadline and joined the Bangladesh THURSDAY, MAY 16, 2013 Q $3.00 Q WOMEN’S WEAR DAILY fire and safety accord with unions on Wednesday, the divisions grew among American companies over an WWD agreement on the issue. “We are committed to Bangladesh and support industry-wide efforts to improve safety standards. We believe this is the right thing to do to bring about sus- tainable, effective change,” said Kim Harr, director of sustainability at Abercrombie & Fitch. While A&F became only the second U.S. company to sign the IndustriALL Global Union-led agreement, other American firms outlined their own new initia- tive to address safety issues in the South Asian coun- try. Their proposal comes a day after Wal-Mart Stores Inc. revealed its own plan to address working condi- tions in Bangladesh. The “North American Bangladesh Worker Safety Working Group” on Wednesday unveiled the “Safer Factories Initiative” that will include short-, medium- and long-term strategic goals for making “meaningful improvements” to worker safety in Bangladesh. The initiative plans to establish a sustainable funding mechanism for training, upgrades of factory struc- tures and ensuring the safety of new construction. Unlike the IndustriALL accord, the new U.S. plan by American retailers and brands and six U.S. and Canadian industry associations is not legally bind- ing and no companies have signed it. Six industry associations, representing hundreds of retailers and brands, comprise the working group. They include the National Retail Federation, Retail Industry Leaders Association, American Apparel & Footwear Association, U.S. Association of Importers of Textiles and Apparel, Retail Council of Canada and the SEE PAGE 6 Macy’s Bucks Headwinds By DAVID MOIN THE “CORE” CUSTOMER made the quarter for Polo Macy’s Inc. While Bloomingdale’s shoppers and budget-con- scious Macy’s customers held back their spending, Macy’s Inc. said Wednesday that business overall was strong, and that net income rose 19.9 percent in the first quarter amid a 3.8 percent rise in comp-store sales. Prince Net income reached $217 million, or 55 cents a di- Prince Harry wound up his U.S. tour in the bucolic luted share, from $181 million, or 43 cents. Net sales increased 4 percent to $6.39 billion from $6.14 billion. environs of Greenwich, Conn., doing what princes “I was in six different cities in the last three weeks do — playing polo and sitting between two beautiful with my executive team visiting stores and it’s all just women, Karolina Kurkova and Stephanie Seymour, coming together, even when you’ve got headwinds,” Terry J. Lundgren, Macy’s Inc. chairman, president at lunch. There was a serious purpose, though: to and chief executive officer, told WWD. “I just think play in the Sentebale Royal Salute Polo Cup, named our strategies are driving our business,” Lundgren after the prince’s children’s aid charity in Lesotho. said, referring to the My Macy’s field organization for localizing assortments; omnichannel initiatives He won the crowd — and the match. For more on including Web site upgrades and fulfilling orders by the event, see pages 4 and 5. shipping products from stores, and the Magic Selling program geared to improve the skills of sales asso- ciates. Macy’s has racked up 13 straight quarters of comp-store gains of at least 3 percent. Lundgren did acknowledge that the Bloomingdale’s division was on “the softer side” in the first quar- ter even as high-end businesses have mostly been performing well. “Today you could argue those deep in the equity market have to be feeling pret- ty good. There have been lots of highs every day,” PHOTO BY STEVE EICHNER Lundgren noted. “Having said that, a lot of people X SEE PAGE 3 ZDDLQGG 30 2 WWD THURSDAY, MAY 16, 2013 Dillard’s Net Rises on Flat Sales THE BRIEFING BOX were unchanged at $1.55 billion ries, lingerie and junior and By ARNOLD J. KARR for both periods but rose 1 percent children’s apparel, and weakest IN TODAY’S WWD on a same-store sales basis on top in home and furniture classifica- DILLARD’S INC. employed mod- of a 5 percent improvement in the tions. Sales were strongest in the est expense reduction to squeeze first quarter of 2012. central region, covering states higher profits out of flat sales in A 2 percent reduction in cost from Texas to Montana. A look from Just the first quarter. of sales, to $937.8 million, allowed Among the special items re- Cavalli’s 2014 resort The Little Rock, Ark.-based the company to boost gross mar- ported for the quarter was a collection. For more, department store group reported gin to 41 percent of revenues from pretax gain of $11.8 million, see WWD.com. that in the three months ended 39.7 percent in the prior-year pe- translating into a 16-cent-a-share May 4, net income expanded 23.4 riod. A 0.8 percent cut in selling, aftertax benefit, from the compa- percent to $117.2 million, or $2.50 general and administrative costs ny’s sale of its stake in Acumen a diluted share, from $95 mil- helped operating income advance Brands, a Fayetteville, Ark.- lion, or $1.89, in the 2011 quarter. 22.5 percent to $180.2 million. based e-commerce firm. Adjusting for special items, earn- “We are reporting a strong The company completed the ings per share for the quarter was start to 2013 in spite of unseason- quarter with 283 department $2.40, 31 cents above the $2.09 ably cool weather,” said William store locations and 18 outlet expected, on average, by the two Dillard 2nd, chief executive of- stores spanning 29 states. During analysts who supply estimates. ficer. “Positive comparable-store the just-completed three months, Revenues rose 0.2 percent to sales and gross margin expansion it closed a 94,000-square-foot $1.589 billion from $1.586 billion combined with good expense unit in the Cache Valley Mall in PHOTO BY GIOVANNA PAVESI PAVESI GIOVANNA BY PHOTO in the prior-year period, with control led to another quarter of Logan, Utah. During the current the more recent figure falling record profitability for Dillard’s.” second quarter, it plans to close short of estimates of $1.61 billion. The company said sales were its 60,000-square-foot Randolph As even more European brands and retailers joined the Excluding nonretail revenue, sales strongest in women’s accesso- Mall location in Asheboro, N.C. Bangladesh fire and safety accord, the U.S. industry outlined its own initiative to address safety issues in the country. PAGE 1 Macy’s Inc. said Wednesday that business overall was strong, and that net income rose 19.9 percent in the first Calypso St. Barth Expands Out West quarter amid a 3.8 percent rise in comp-store sales. PAGE 1 By RACHEL BROWN Macy’s will strike a patriotic chord on May 15 when it kicks off “American Icons,” a promotion running through the Fourth LOS ANGELES — Calypso St. of July touching all 800 of its stores and macys.com. PAGE 3 Barth is in a California state of E G mind. Carolina Herrera is making a concerted push into Asia with Over the last two months the brand has expanded in Northern CH Carolina Herrera, her secondary line. PAGE 3 ER/WIREIMA California by opening stores at P the Stanford Shopping Center Prince Harry’s week-long goodwill photo op swing through in Palo Alto and Santana Row the United States took him to the Greenwich Polo Club on RISHA LEE RISHA in San Jose, and now it is head- T Wednesday for a charity polo match. PAGE 4 ing to Southern California, Looks from Calypso St. Barth. where stores are due to open BY HOTO CBS president and chief executive officer Les Moonves at Westfield Century City in P played things pretty straight during the network’s upfront Los Angeles in July and later key to Calypso St. Barth’s success. ers. Accessories and apparel are Wednesday. PAGE 7 this summer in Malibu and “The goal·· is to really embed priced mostly from $200 to $850. Montecito. The retail expansion ourselves in these neighborhoods “We really try to show her a full Jeff Gennette, chief merchandising officer of Macy’s Inc., in California is part of a larger and ingratiate ourselves to those expression of a look over and over will be honored on Monday at Ronald McDonald House New domestic store push that will consumers, and hopefully we will again in the store. The sales asso- York’s annual gala. PAGE 7 take Calypso from 39 units now to gain them as great fans,” she said, ciates need to complete the pic- 45 by the end of the year. adding, “Every single sales asso- ture for her. Our customers really Andrew Marc has snagged Richard Chai to serve as its new The brand is choosy when it ciate has a client book. We ask want that. It is not an item busi- creative design consultant. PAGE MW1 comes to retail real estate, ac- her [the client] how she wants us ness,” said DiRienzo-Smith.
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