GIGI’S SNOOPY STYLE DIOR AND THE THE BELOVED “PEANUTS” PRINCESS GROUP BEAGLE AND HIS SISTER CHRISTIAN DIOR CATCHING UP BELLE GET THE FASHION LINKS WITH THE WITH GIGI HADID TREATMENT FROM THE PRINCESS GRACE ABOUT MODELING, LIKES OF DRIES VAN NOTEN, FOUNDATION-USA HER FAMOUS ISABEL MARANT, DIANE VON TO SPONSOR ITS FRIENDS AND FURSTENBERG AND MORE. UPCOMING AWARD LOVE. PAGE 10 PAGES 4 AND 5 GALAS. PAGE 6

AIMING TO BE BIGGEST MW Outlines Strategy, Shares Decline 9.9%

By JEAN E. PALMIERI

THE MEN’S WEARHOUSE INC. has lofty ambitions — to become the largest seller of men’s apparel in the United States — but Wall Street has some doubts about the plan. Currently at number three behind Macy’s Inc. and WEDNESDAY, JULY 30, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY Kohl’s Corp., the retailer is projecting sales of $3.7 bil- WWD lion by the end of 2017 as it works to absorb its former rival and latest conquest, Jos. A. Bank Clothiers Inc. Together, the companies had sales of $2.6 billion in 2013. In an analysts’ presentation in New York City on Tuesday morning, Men’s Wearhouse management said that over the next three years the combined company will have earnings before interest and taxes of $500 mil- lion, an average comparable-store sales increase of 2 to 3 percent, and will open 30 full-line Men’s Wearhouse stores a year until it reaches its goal of 750 units, a num- ber the retailer expects to hit in 2016. Currently, there are 653 full-line Men’s Wearhouse stores. Shares of the stock were hit hard Tuesday when investors appeared to be disappointed that the merg- er between the two companies won’t produce cost savings as soon as some had expected. The stock dropped 9.9 percent to $51.66 with near- ly six million shares trading hands — well above the 651,000 daily average for the past three months. Analyst Janet Kloppenburg of JJK Research said some investors were expecting the company to realize the full benefi t of the deal’s $100 million to $150 mil- Sweet Talk lion synergies in 2016, but Men’s Wearhouse said those Pastels aren’t just for girly dresses. For resort, savings won’t be fully realized until the following year. even suits got a dose of sweetener. Here, Osman’s “It was just the semantics,” Kloppenburg said. cotton, nylon and elastane blazer and skirt and silk “Expectations might have been a little bit higher. It’s still a great story and is going to be a very impactful blouse. Alexis Bittar ring; Marni shoes. integration in terms of cost savings.” In “sharing our vision for the growth of Men’s Wearhouse,” Doug Ewert, president and chief execu- tive offi cer, said that after a rough 2012, all divisions SEE PAGE 9 Wal-Mart on the Prowl To Boost Web Expertise

By RACHEL STRUGATZ

WAL-MART STORES INC. wants to sharpen its digital game through acquisition. The retailer, which has become one of the most voracious dealmakers in tech, said Tuesday that it would buy social marketplace Luvocracy through its @WalmartLabs research and development arm. The deal marks the unit’s 14th acquisition and another signal that the world’s largest retailer plans to use all the tools at its disposal to boost its market share. Already about 245 million customers visit Wal- Mart’s 10,900 stores and its 10 Web sites each week. The Luvocracy purchase and the expertise it brings on board could be particularly useful for Wal- Mart as it tries to help that army of shoppers navi- gate its vast product offerings. Luvocracy specializes in connecting users with like-minded shoppers and helping them sift through a large number of products and fi nd what they want. “Luvocracy was one of the fi rst companies to en- able the entire social shopping experience — from discovery to commerce — to occur within the four walls of its app,” said Ben Galbraith, vice president of global products for @WalmartLabs. A spokesperson for Wal-Mart said Luvocracy’s technology won’t be integrated into walmart.com, but the team behind the startup will “enable us to inno- vate in design, product and discovery shopping.” Luvocracy was founded in 2011 by Nathan Stoll and Roger Barnett and raised $11 million in funding last PHOTO BY THOMAS IANNACCONE; STYLED BY MAYTE ALLENDE

MODEL: FATIMA/IMG; HAIR BY PASCALE POMA USING L’ORÉAL PROFESSIONNEL; MAKEUP BY JAVIER ROMERO USING MAKE UP FOR EVER; FASHION ASSISTANT: ANDREW SHANG ASSISTANT: ROMERO USING MAKE UP FOR EVER; FASHION JAVIER PROFESSIONNEL; MAKEUP BY POMA USING L’ORÉAL PASCALE HAIR BY MODEL: FATIMA/IMG; SEE PAGE 12 2 WWD WEDNESDAY, JULY 30, 2014 WWD.COM NLRB Sides With Bergdorf’s in Union Case THE BRIEFING BOX indicated that the board is taking decisions about By KRISTI ELLIS union bargaining units within stores on a case-by- IN TODAY’S WWD case basis. WASHINGTON — The National Labor Relations The RWDSU petitioned the NLRB to cover 46 Board has ruled in favor of the Neiman Marcus shoe sales associates in the two departments and an Group Inc.’s Bergdorf Goodman in a case involving election was held in June 2012, but the ballots were Gigi Hadid at the Guess event during New York Fashion Week. a union trying to organize two separate shoe de- impounded because of the pending case before the For more on the model, see page 10 and WWD.com. partments within its women’s store in Manhattan. NLRB. In its decision posted late Monday, the NLRB The NLRB said in its decision that the petition dismissed the union’s petition, vacated the union brought by the Retail, Wholesale Department Store election and remanded the case back to an NLRB Union to organize a salon shoe department on the regional director for “further appropriate action.” second floor of the Bergdorf store and a contempo- Neiman Marcus declined to comment on the rary shoe department located on the fifth floor did NLRB decision, but two retail trade and lobbying not represent an “appropriate [bargaining] unit” groups weighed in. because it “lacked a community of interest.” “It is certainly a win for Bergdorf without a Retailers have grown concerned over decisions question,” a spokesman for the Retail Industry handed down by the NLRB, most recently one in Leaders Association said. which it ruled against Macy’s Inc. and allowed a However, even with the decision in favor of union to move forward with an organizing election Bergdorf, RILA and the National Retail Federation involving employees in a cosmetics and fragrance believe the NLRB will continue to push for the cre- department at one of its stores. The retail commu- ation of micro unions. JENNA GREENE nity argues that the Macy’s ruling will pave the way “This is a qualified victory for the retail industry, for separate union bargaining units within stores, but significant challenges continue to confront the PHOTO BY which they say could fragment their business. nation’s retail community,” including the concern But the NLRB’s decision in the Bergdorf case about micro unions, an NRF spokesman said.

Men’s Wearhouse is gunning to become the largest men’s apparel retailer in the U.S. PAGE 1

Puma Banking on Marketing Push Wal-Mart Stores Inc. said Tuesday it would buy social marketplace Luvocracy. PAGE 1 good initial sales at retail of Arsenal replica jerseys.” By PAULINA SZMYDKE However, only apparel showed a significant sign Snoopy and his sister Belle will once again be given a makeover of improvement in the second quarter, growing 12.8 with the reprisal of the “Snoopy in Fashion” project. PAGE 4 PARIS — Puma SE continues its rocky road to recovery. percent thanks to World Cup-related sales. By con- The German activewear firm, whose earnings trast, footwear dropped 9.1 percent, while acces- Christian Dior will be the sole presenting sponsor at upcoming and sales continued to slide in the second quarter sories, hindered by declining golf equipment sales, PAGE 6 of 2014, said it was eager to launch the largest global were up 3.4 percent, which is less than in the same Princess Grace Foundation-USA award galas. marketing campaign in its history, hoping to finally quarter last year. BaubleBar has turn around its fortunes. Gulden maintained he felt “comfortable in con- raised $10 million in a Series B financing, led PAGE 6 “It’s a 360-degrees concept, including retail, social firming our guidance,” which projects flat full-year by J. Christopher Burch’s Burch Creative Capital. media, digital and print. The first TV spot will air on currency-adjusted net sales and a 3 percent in- Aug. 7,” Björn Gulden, Puma’s chief executive officer, crease in net earnings. Buyers and manufacturers at the Berlin trade shows have said during a conference call Tuesday. The “Forever Faster” offensive is also expected to become more optimistic about the denim market. PAGE 7 “And it’s just the beginning,” he continued, adding boost confidence among retailers, who have been re- the campaign, dubbed “Forever Faster,” was “a long- luctant to give retail space to Puma, favoring Adidas The unofficial slogan at the upcoming Outdoor Retailer trade term project with continuous investment up to the and Nike over the struggling activewear firm. show might be: Let’s get physical — and fashionable. PAGE 8 Olympic Games in Rio de Janeiro in 2016.” Gulden said the company is channeling its ef- Although Gulden would not disclose the compa- forts toward improving distribution by teaming up Flash-sale site Rue La La has hired J.P. Morgan to help it find ny’s marketing expenditures for this undertaking, he with key retailers to develop joint products and some investors. PAGE 9 said they were going to be “considerable” and “much marketing programs, citing Foot Locker as an ex- more” than what Puma had spent in the past. ample where it worked. Lisa Perry is unveiling a one-day collaboration with Dominique Featuring a fleet of the brand’s top athletes and He said business with Foot Locker had been de- Ansel of Cronut fame on Saturday. PAGE 11 testimonials, including Usain Bolt, Mario Balotelli clining until Puma launched the “Puma Lab” ini- and Lexi Thompson, the campaign is slated to be tiative in February, increasing its presence to 126 Ireland Baldwin, the daughter of Alec Baldwin and Kim doors in the U.S. and gener- launched in North and South Basinger, will be the face of Rampage’s fall campaign. PAGE 11 America as well as the Asia- ating “a positive spillover ef- Puma’s apparel sales Pacific region first, before fect” to other key retailers in improved 12.8 percent Twitter’s stock jumped 29 percent as the company’s ad rolling out to Europe and the in the second quarter. the U.S. PAGE 12 rest of the world. Consequently, second- business pushed up its sales. “This has to do with the quarter sales in the Americas fact that the back-to-school improved 4.6 percent, while Kendra Scott has linked with Norwest Venture Partners to season starts at different in the EMEA (Europe, Middle bolster its brick-and-mortar and online growth. PAGE 12 times in different regions,” East and Asia) region they the ceo explained. dropped by 1.4 percent due to ON WWD.COM Gulden said the cam- declining wholesale revenues paign’s main message would in France and Scandinavia. be that Puma is back. Following the Foot Locker MODEL CALL: WWD recently caught up with NYU “We want to show that example, Gulden said he was sophomore Gigi Hadid in between takes on the annual Puma has cool and good athletes. And we want to hoping to initiate the same “U-turn” with France’s Pirelli Calendar photo shoot. For more, see WWD.com. combine personality and attitude with products,” largest sports retailer Decathlon, which lost its con- he explained. fidence in Puma, according to the ceo. In the immediate aftermath of the FIFA World “It’s about trust. We need to convince them with FOLLOW US ON SOCIAL MEDIA Cup, Puma SE said second-quarter net profit was a new positioning and new products that they need down 76.2 percent. The company, which is controlled Puma,” he argued. @ WWD.com/social by French group Kering, said the result was in line Puma appointed Lars Soerensen as its chief op- with expectations. erating officer. Soerensen, who joined the company TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. Negatively impacted by volatile currencies in sever- from Bestseller in November 2013 after holding WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. al key regions including Russia, Turkey, Japan and the other managerial positions at Esprit, Adidas and COPYRIGHT ©2014 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Americas, net earnings stood at 4.2 million euros, or $5.8 Lego, will succeed Andy Koehler. Considered a key VOLUME 208, NO. 21. WEDNESDAY, JULY 30, 2014. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and million, in the three months ended June 30, versus 17.5 figure in rebuilding the company, Koehler is said two additional issues in February and September) by Fairchild Fashion Media, which is a division of Advance Magazine million euros, or $22.8 million, in the year-ago period. to be leaving Puma for personal reasons, effective Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Total sales for the quarter were down 5.8 per- Thursday, just a year after taking up the post. Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, cent to 652.2 million euros, or $894.6 million. Dollar Gulden neither confirmed nor denied German NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P. O . Box 503, RPO West figures are calculated at average exchange for the newspaper reports that Puma is looking to diversify its Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P. O . Box 6356, period to which they refer. business model and take a stake in Borussia Dortmund, Harlan, IA 51593. FOR SUBSCRIPTION, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 6356, Harlan, IA 51593, call 866-401-7801, or email customer service at wwdPrint@cdsfulfillment.com. “I have said all along: We know that the reposi- Germany’s only publicly traded football club. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address tioning of Puma and the turnaround of the business “Because it’s publicly traded, we can buy shares changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. will take time. However, I feel we are making prog- at any given time, and if we buy a bigger amount, If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with ress on all our key strategic priorities and we have we will talk about it. We do not hold any shares at your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be initiated the right projects to make 2014 the start of the moment, but I cannot tell you what will happen 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 requests, please call 212-630-5656 or fax the request the turnaround,” Gulden assured. tomorrow or the day after,” Gulden said, fielding re- to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. For reuse He said both the brand’s dual-colored Tricks curring questions on the matter. permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.wwd.com/subscriptions. football boots and its national team jerseys with He added: “The sports industry is evolving. Occasionally we make our subscriber list available to carefully screened companies that offer products and services that we ACTV technology have had “excellent” sell-through When big football clubs offer their shares, you have believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P. O . Box 6356, Harlan, IA 51593 or call 866-401-7801. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR and exceeded expectations. to look at it strategically, and that’s we are doing.” DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED “They almost sold out everywhere. It’s what we call Puma SE’s own shares closed at 202.45 euros TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, a fast design,” he said. “In addition, we celebrated a ($271.49), up 1.9 percent, on Tuesday, reflecting the UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND successful Arsenal launch in July, followed by very company’s optimism about its future progress. OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. REWRITING THE RULES A VISION FOR CHANGE WHAT IS THE NEXT BIG THING ? WHO DEFINES STYLE ? THE FUTURE OF RETAIL: BRICKS vs. CLICKS

John W. Spelich Glen Senk Steve Holmes Yancey Strickler Ron Frasch ALIBABA GROUP FRONT ROW PARTNERS INTEL KICKSTARTER CASTANEA PARTNERS

wwd.com/apparelny for a full list of speakers ATTEND: [email protected], 212.630.4212 SPONSOR: [email protected], 212.630.4824

SPONSORED BY 4 WWD WEDNESDAY, JULY 30, 2014 Good Grief!

By JESSICA IREDALE

SNOOPY, the beloved com- panion of Charlie Brown, has always been more of an accessories type than a true fashion hound — er, beagle. As imagined by “Peanuts” creator Charles Schulz, Snoopy was ren- dered mainly in a slim Dsquared2 black collar and nothing else, though he dabbled in thematic ensembles such as a flight cap and goggles as the World War I Flying Ace, and sunglasses as Joe Cool. Then in 1984, in what could be dubbed comics- meet-couture, the beagle and his kid sister Belle got the Cinderella treatment courtesy of an impressive list of design- Snoopy ers, including Giorgio Armani, and Belle Gucci, Gianni Versace, Thierry by Calvin Mugler, Jean Paul Gaultier and Klein Karl Lagerfeld, all of whom cre- Collection. ated custom outfits for the duo based on the fashions of the time. The resulting collection of Snoopy and Belle dolls went on to exhibit at the Louvre, the Natural History Museum of Los Angeles County and throughout Europe and Asia. The whole thing was a silly stroke of mar- keting genius. “It allowed artists who liked the characters to take them out of the comic page and make Opening Ceremony them — I don’t know whether you’d call them sassy or just funny,” said Schulz’s widow, Jean. “Everything about Snoopy is funny — the costumes are funny, they make you laugh.” Now the project is being re- prised for the “Peanuts” comic Isabel Marant, Rodarte, as well beautiful selection of sweat- strip’s 65th anniversary, which as Betsey Johnson and Diane ers.…It was flattering to him falls on the 30th anniversary von Furstenberg, both of whom that the designers, who were of the original “Snoopy in participated in the first go- attracting attention of royalty Fashion,” and roughly a year round of “Snoopy in Fashion.” and stars and so forth, would before the first major “Peanuts” (Here, sketches and mock-ups want to join in the project. I motion picture hits the screen, of the looks.) think he pointed out that it’s to be released in 100 countries “We are so excited to cel- just fun. It brings people to- and 40 languages. ebrate again 30 years later with gether on a level that really “It’s this huge, amazing tidal Snoopy and Belle in fashion,” sort of transcends their snooti- wave of marketing and enthusi- said von Furstenberg. “We de- ness, if you want.” asm,” said Leigh Anne Brodsky, signed some pajamas for Snoopy The 2014 iteration of managing director of Peanuts and a wrap dress for Belle, both “Snoopy and Belle in Fashion,” Worldwide. “Our timing is re- in our signature chain link.” which features vinyl beagle ally working well with the mo- Asked if Schulz, who died dolls wearing the designer mentum and also with these in 2000, thought about fashion, looks, will launch Sept. 8 at the huge milestones.” Jean replied, “No, not at all! New Museum during New York Among the designers and We always say he was a boy Fashion Week. From there, labels outfitting Snoopy and from the Midwest. Although, the exhibition will travel to Belle this time are Dries Van I have to say, he loved his the Palais de Tokyo in Paris, J.Mendel Noten, Calvin Klein Collection, sweaters and he had the most Moscow and Milan.

Flashback to Fabulous: Snoopy and Belle in the Eighties

Diane von Furstenberg Jean Paul Gaultier Emanuel Ungaro Missoni Thierry Mugler WWD WEDNESDAY, JULY 30, 2014 5 WWD.COM Dogs in Designer Duds!

Iconix Brand Group owns 80 over $500 million in the next percent of Peanuts Worldwide, year. “Peanuts” merchandise with the Schulz family retain- is available in 100 countries — ing the other 20 percent. This Europe and Asia, particularly confluence of marketing initia- Japan (go figure) are the biggest tives, along with the forthcom- markets. There are 500 Snoopy ing film, seeks to introduce Time shops-in-shop in Asia, as “Peanuts” to a new generation. well as Charlie Brown cafés. “The next 12 months are pret- “Snoopy in Fashion” isn’t ty critical for the brand, with this the only haute moment for major motion picture coming “Peanuts.” There was a recent

Isabel Marant

out with 20th Century Fox,” said collaboration with Colette in Neil Cole, ceo of Iconix. “One Paris; a Woodstock-centric of our big goals is elevating the collection with the Italian fashion part of the business.” label Fay is launching for fall; There is a significant Lladro is creating Charlie “Peanuts” apparel business, Brown and Snoopy figurines to with approximately $300 million launch in early 2015. As Jean to $400 million in sales volume, Schulz put it, “We’re taking it which Iconix plans to grown to beyond the T-shirt.” Betsey Johnson

Versace Karl Lagerfeld Gucci Betsey Johnson Carolina Herrera 6 WWD WEDNESDAY, JULY 30, 2014 Dior Links With Princess Grace Foundation-USA

“Our partnership with the Princess By JOELLE DIDERICH Prince Rainier with Grace Foundation-USA is deeply rooted Princess Grace of in history and mutual admiration be- PARIS — The Princess Grace Monaco in Dior. tween the princely family of Monaco Foundation-USA has unveiled a three- and the house of Dior. We both share year partnership with Christian Dior the same pursuit of artistic excellence under which the French luxury firm will and are honored to be a part of recogniz- become the sole presenting sponsor for ing the artistry of Princess Grace Award the foundation’s upcoming award galas winners in theater, dance and film,” in Los Angeles, Monaco and New York. Toledano said. The events are due to be held in The other cochairs are Robert Iger, Beverly Hills this year, Monte Carlo in chairman and ceo of The Walt Disney 2015 and New York City in 2016. Co., and his wife, Bloomberg Television The gala on Oct. 8, to be attended by correspondent Willow Bay, in addition Prince Albert and Princess Charlene of to television producer Dick Wolf and his Monaco, will mark the foundation’s re- wife, philanthropist Noelle Wolf. turn to Los Angeles after almost three Supporters of the host commit- decades to recognize this year’s Princess tee include Denzel Washington and Grace Award winners and Prince Rainier his wife, Pauletta Washington; Reese III honoree, who have yet to be revealed. Witherspoon and her husband, Jim Dior’s links to Monaco date back to Toth; Mikhail Baryshnikov; Ron Burkle; 1956, when actress Grace Kelly wore a Mandy Patinkin, and Cicely Tyson. white satin Dior gown at a ball celebrat- DIDIER BAVEREL/GETTY IMAGES The Princess Grace Foundation- Prince Albert with ing her engagement to Prince Rainier III USA is a charity headquartered in New Princess Charlene ELLIOTT ERWITT/MAGNUM PHOTOS. of Monaco. As Princess Grace of Monaco, PHOTO BY York City that was established by Prince of Monaco in Dior.

she would go on to wear Dior on count- Rainier after the death of Princess PHOTO BY less occasions. sort display this year for Louis Vuitton. Grace in 1982 to honor her memory. It Dior wrote a new chapter in its re- Both brands belong to luxury giant aims to identify and assist emerging tal- stowed awards totaling more than $10 lationship with the tiny principality by LVMH Moët Hennessy Louis Vuitton. ent in theater, dance and film by award- million on close to 700 recipients. staging its resort show there last year Sidney Toledano, chief executive of- ing grants in the form of scholarships, Past winners include director Cary in the presence of Prince Albert and ficer of Dior, will be a cochair of the Los apprenticeships and fellowships. The Fukunaga, playwright Tony Kushner and Princess Charlene, who also hosted a re- Angeles gala alongside his wife, Katia. Princess Grace Foundation-USA has be- ballet dancer Gillian Murphy.

Chris Burch Talks BaubleBar Investment Iconix’s Foreign Bent company specializing in espadrilles. In addition to its signature collec- By LAUREN MCCARTHY “Given the increasing popularity of tion of necklaces, earrings, bracelets By VICKI M. YOUNG minimalist fashion,’’ women will con- and rings, the site features a “Guest NEW YORK — BaubleBar’s future tinue to use accessories to follow Bartender” series that periodical- FOR ICONIX BRAND GROUP, the focus is inter- just got a bit brighter. trends,” Burch said of his recent ly features existing and exclusive national — whether acquisitions or initial public On Tuesday morning, the online interest in accessories. “I have seen baubles chosen by various influenc- offerings. jewelry retailer disclosed that it the strength of the accessories mar- ers, such as model Coco Rocha, ac- International comprises about 40 percent of the had raised $10 million in a Series B ket play out in other recent invest- tress Ashley Madekwe and blogger firm’s revenues. financing. The leader of the invest- ments, like Soludos, Outdoor Voices Courtney Kerr. In a conference call to Wall Street analysts fol- ment: J. Christopher Burch’s Burch and Solid & Striped. [And] I loved Yacobovsky credited the com- lowing the company’s report of second-quarter Creative Capital. Other investors in- the BaubleBar thesis that the mod- pany’s success in part to the current results on Tuesday, chairman and chief executive clude Aspect Ventures, Triplepoint ern women experiments with fash- state of the jewelry business, par- officer Neil Cole said, “I see [international] con- Ventures and Comcast Ventures, ion through jewelry.” ticularly in the lower-price segment tinuing to grow.” as well as existing investors Accel With his new stake in the com- (BaubleBar’s average prices hover Cole noted the firm’s Peanuts franchise around Partners and Greycroft Partners. pany, Burch disclosed plans to con- around the $20 to $40 mark). “We the world, including its upcoming 2015 computer- Burch first came to know tribute more to BaubleBar than just tend not to be an ‘It’ item business,” animated 3-D film, contributing to revenues. He also BaubleBar through a friend’s daugh- financial aid. “This is not just an in- she said. “When you look at bags or cautioned that the growth could depend too on the ter, who happened to be one of the shoes, there is always an ‘It’ item, but “types of acquisitions we have going forward. The company’s first employees. “I was we find that there are broader trends last three acquisitions were international brands in a big fan of their SoHo pop-up [in in jewelry with which people get ex- Umbro, Lee Cooper and Buffalo,” adding that there’s Manhattan] last summer and I want- I was incredibly cited about and then shop for their no way to predict the types of deals going forward. ed to learn more,” Burch told WWD own personal style within that trend.” Cole emphasized that the pipeline remains in an exclusive interview. Since shut- impressed by With this latest round of invest- strong and that the company has a strong balance tering the pop-up in August 2013, ment, the company plans to expand sheet. “We have over $500 million available to us be- BaubleBar has since developed re- BaubleBar’s growth its current retail partnership initia- tween cash and our current facilities. That’s without tail partnerships with Nordstrom and tive, in addition to experimenting even using the securitization warehouse vehicle we Anthropologie, the former of which with digital marketing channels have as we continue to buy more properties.” launched in April with 35 doors and and their move into and updating existing technology. He also said that while the company is hoping has since increased to 117. Such part- “It’s important for us to control for the initial public offering of a brand under the nerships were a large contribution to traditional retail. the customer experience from end Iconix China joint venture to occur in the third Burch’s decision to invest. to end, so we ship in-house,” said quarter, “we’re not sure we’re definitely going to be “I was incredibly impressed by — J. CHRISTOPHER BURCH, Yacobovsky. “This creates a lot of a seller and we’re considering possibly that moneti- BaubleBar’s growth and their move BURCH CREATIVE CAPITAL complexity, especially when you zation might happen in early 2015 because it’s based into traditional retail,” said Burch. consider that we are a fast-fashion on a multiple of how we perform this year. And our “I thought this would be the perfect business and we turn inventory in- performance is pretty strong this year.” time to not only invest but mentor vestment for me,” he said. “I feel so credibly quickly. While that is great There was speculation earlier this year that the them as they continue to grow the strongly about BaubleBar’s growth for us from a working capital man- brand headed for a Chinese IPO is Iconix’s Candie’s business and distribution. The girls potential and the team. I wanted to agement standpoint, it means that operation. Other brand investments under the have an incredible passion for what make sure [founders] Amy [Jain] and we need even more sophisticated Iconix China umbrella include Rampage, Badgley they are doing and their success so far Daniella [Yacobovsky] knew that I software and systems. We’re going Mischka, Royal Velvet, Ed Hardy and Material in setting up a vertically integrated would always be there for them as to be investing up front in a lot of Girl. China Outfitters Holdings Ltd., a men’s wear business driven by data analytics re- their partner. With this investment mass infrastructure in some of the retailer that was the London Fog partner in China, ally blew me away. Their passion and and my experience in merchandis- resources that build our off-line and was the first of the brands to go public in December drive reminds me a little bit of myself ing, sourcing, branding and distri- retail partners.” 2011. The IPO saw private equity firm KKR & Co. building Eagle’s Eye at that age.” bution, I know that BaubleBar will Asked about a five-year plan, take a $60 million stake in the offering. Iconix elect- Burch Creative Capital’s in- continue to explode its direct-to-con- Yacobovsky cited the company’s ed to cash out half of its investment in the business vestment portfolio includes fash- sumer and wholesale businesses.” core mission. “We started with a and leave half in the public firm. ion companies Tory Burch and BaubleBar was officially very simple thesis: We wanted to For the second quarter ended June 30, Iconix Trademark, chain discount store launched in January’’ 2011, with provide a one-stop shop for fashion saw a slide in profits despite record revenue gains. Five Below and fashion commerce Jain and Yacobovsky working out jewelry,” she said. “We want to keep For the three months, net income fell 8.8 percent and social media app Trendabl, of Jain’s apartment. The company reinventing and innovating every- to $35.3 million, or 60 cents a diluted share, from among others. Burch’s investment initially raised a $1.1 million seed thing from partnerships to how we $38.7 million, or 66 cents, a year ago. Earnings be- in BaubleBar comes on the heels round, led by Accel in December reach the customer. But that core fore interest, taxes, depreciation and amortization of several accessories acquisitions, 2010, and a $4.5 million Series A, led thesis still stands. rose 8 percent to $78.2 million from $72.7 million including yoga accessories line by Accel and Greycroft, in June 2012. Added Burch, “The girls talk last year. Free cash flow was $60 million, compared Outdoor Voices and Hamptons, BaubleBar now boasts about 160 full- about ‘global Bauble domination.’ with $60.8 million last year. Total revenues rose 3.3 N.Y.-based beachwear company time employees. The site features I think they will be a global brand percent to $118.9 million from $115.1 million. Solid and Striped, both in late 2013. 850 to 1,000 stockkeeping units live with tremendous distribution For the six months, net income shot up 30.4 per- Most recently, Burch made a small on its site at all times, with 100 to 150 around the world and the best retail cent to $95.1 million, or $1.63 a diluted share, on a investment in Soludos, a footwear new styles introduced every week. partners in the industry.” 6.8 percent revenue gain to $235.1 million. WWD WEDNESDAY, JULY 30, 2014 7 WWD.COM New Paths for Denim Seen at Berlin Fairs tion of London-based Universal By QUYNH TRAN Works. “Indigo is simple, natu- ral and honest; it lives and BERLIN — Indigo is on the changes with the wearer and comeback trail for spring 2015. its instability holds a beauty After a tough 2013 and a mod- of imperfection that people est start in 2014, buyers and man- grow to appreciate more and ufacturers at Berlin’s Bread & more,” founder David Keyte re- Butter, Premium and Seek trade marked at Seek. The brand has shows are becoming more opti- a presence in the U.K., U.S. and mistic about the denim market, Japan, but the German market with stabilization and innovation JEANMAKER is “becoming a business, too,” bolstering their confidence. THE Keyte said. At the three fairs earlier this Silvana Renck, a buyer from

month, skinny fits remained DENHAM Geli’s near Hamburg, told WWD, predominant for most compa- OF “Denim is very strong. There nies, although some offered was an increasing price sensitiv- revised boyfriend fits or other ity last year, but it’s more about models emphasizing comfort. COURTESY the quality-for-price value — the The Denham the Jeanmaker booth at the Bread & Butter Berlin fair. Alternative ideas in jeans con- customers want to know what tinued to emerge, as did new PHOTO they get and are more conscious concepts for denim shirts, dress- itive feedback from customers in about the story of product.” es, jackets and even accessories. the German-speaking market and “Denim is definitely taking Non-denim interpretations we’re now looking at Russia.” a bigger share,” said Håkan of denim techniques like indigo Buyers from Kolm, an Ström, chief operating officer dye and jeans weaving for cot- Austrian chain with eight units, BUTTER BERLIN of Cheap Monday, at Seek. “Our ton and linen also boosted the agreed denim is again on the denim orders have almost dou- more traditional blues. rise, adding that “customers are bled for spring-summer 2015. At Bread & Butter, non-denim looking for new optics.” We started with skinny jeans 10 specialists such as Joop, Tiger of “What’s the definition of a years ago, and tight is still driv- Sweden and Marc O’Polo visibly contemporary denim brand? ing the market,” he continued. increased the share of denim in People want newness but they Cheap Monday introduced their apparel collections. still like the traditional look,” the “Spray-On,” very tight jeans “It’s definitely getting bluer,” commented Andreas Åhrman, in the rock ’n’ roll mode, for fall said Nele Obst, senior denim de- international sales and market- and will further develop the

signer for women’s wear at Marc ing director of Nudie Jeans. “Our OF BREAD & TONI KRETSCHMER/COURTESY model for spring 2015. O’Polo. Next year’s look will bestsellers at a price range of 99 With denim showing signs lean toward “clean vintage,” to 149 euros [$136 to $205 at cur- Visitors at the Bread & Butter Berlin fair. of a comeback, it’s appearing with a Seventies blue tone star- rent exchange] are still the slim PHOTO BY in categories other than jeans. ring in more destroyed finishes and tight fits, but there’s a ten- ability data beginning next year. opened its first permanent store Cheap Monday is now offer- and mid- to high-rise skinny fits, dency towards more comfortable Organic cotton and a “triple- in Berlin this month, and is set ing denim shoes, accessories, one boyfriend fit, denim dresses, regular fits coming up slowly, R philosophy” of “recycling, re- to expand in Germany with jeans jackets and sweaters, while at shirts and jackets. The urban and black and gray are receding pairing, reusing” are also at the in the mid and premium range Premium, Liebeskind’s accesso- lifestyle brand’s new denim sig- in favor of more blue.” core of Amsterdam-based Kings from 129 to 500 euros, or $177 to ries and apparel range included nature for spring will be a softer Like Nudie, which uses or- of Indigo, or K.O.I. “The con- $688, with the segment between denim bags with a leather look and more fluid Tencel blend as ganic cotton throughout its as- sumers in fashion are becom- 165 to 185 euros, or $227 to $255, for spring. After expanding suc- denim assumes a bigger role in sortment, G-Star Raw is also ing more aware of the product. selling best. The focus markets cessfully throughout the U.K., the Marc O’Polo collection. turning toward more sustainabil- They are looking for something are Germany, the Netherlands, Northern Europe, Germany and The Mustang brand is going ity and presented the Raw for individual with a story,” accord- the U.K. and Japan, with South the U.S., Asia and Australia are back to its roots, as well. “There the Oceans collection in collabo- ing to founder and chief execu- Korea and Australia becoming becoming more important mar- will be a lot of blue. Rather ration with the Vortex Project tive officer Tony Tonnaer. While more important. kets, according to the company. than trying to be a casual brand, and Pharrell Williams’ company he noted price sensitivity, “it’s Indigo is branching out be- All in all, the Asian presence we’re working on becoming a Bionic Yarn. The range will be more about price-performance yond jeanswear as well. At the has grown at the fairs, with a great- denim brand again,” said chief launched in August. ratio. People are willing to Ethical Fashion Showroom and er turnout of exhibitors and buyers product officer Hans-Bernd “Twenty-seven percent of our spend if the product is good.” Bread & Butter, traditional indi- from Japan and South Korea. Cartsberg. Mustang’s women’s clothes are produced according Vivian Hartog-Holla, rep- go-dyed scarves from resources Jin Cha, a South Korean mer- wear denim designer Jasmin to sustainability guidelines, and resentative of Denham the such as Living Blue and Indigo chandiser scouting for Central Ersümer pointed to next sea- we’re planning to increase this Jeanmaker, concurred. “The People, as well as indigo-dyed Post, a concept store in Seoul, son’s “more fashion” jeans with share,” said Axel Wittmann, a literacy of denim connoisseurs linen, popped up as blue spots said: “We are looking for lifestyle skinnier fits and new signature German sales representative for has increased considerably. If besides the jeans. concepts and niche brands with washings. According to Cartsberg, the firm, adding that the com- you sell quality, price is less im- Indigo and linen also come an individual touch in denim and Mustang’s new direction got “pos- pany plans to disclose sustain- portant.” The Dutch company together in the denim collec- in fashion in general.”

training and support for young entrepreneurs and trade USTR Calls for Expansion of AGOA facilitation such as single border crossings consistent with customs procedures. sion for a “sufficient period of time to encourage mean- The Obama administration is considering moving By KRISTI ELLIS ingful investment and sourcing,” Froman said. larger African countries, such as South Africa, out of the Industry officials are keeping a close eye on AGOA be- preference program and developing bilateral relation- WASHINGTON — U.S. Trade Representative Michael cause Congress must renew the program and past delays ships with them, Froman said. Froman called for a “compact” with sub-Saharan Africa have disrupted business. AGOA contains a stipulation William McRaith, chief supply chain officer at PVH on Tuesday, as the U.S. considers ways to upgrade and known as the “third-country fabric provision” that helps Corp., made the case for Congress to extend AGOA and expand the African Growth & Opportunity Act. companies producing in 27 least-developed countries the third-country fabric provision, arguing that several This includes “sufficiently” extending an apparel pro- that are part of the pact to use fabrics outside of the re- major apparel and textile companies see a great poten- vision that helps retailers and brands, further reducing gion and still receive duty-free benefits when shipping to tial for investment opportunity in Africa. remaining tariffs and moving toward more bilateral or re- the U.S. Apparel and textile imports from the 49 eligible “In April of this year, PVH, together with several of gional arrangements with some of the African countries. countries hit 260.9 million square meter equivalents, val- the largest apparel companies and textile manufactur- Froman, in a speech at the Brookings Institution, said the ued at $983.8 million, for the year ending April. ers, conducted an exploratory business mission to this changing global trade paradigm is forcing the U.S. to con- Froman also noted that the U.S. is considering “ex- region,” McRaith told lawmakers on the House Ways sider new relationships with sub-Saharan Africa. panding AGOA’s coverage while taking into account sensi- & Means trade subcommittee. “Many companies that The Obama administration has undergone a year-long tivities here at home.” He said 97.5 percent of all tariffs on went with us were skeptics, they were cynics, they re- review of AGOA and is in consultation with Congress over imported products from AGOA countries are already duty ally did not believe it was ready for this type of invest- renewing and updating the preference program that ex- free and the U.S. is considering opening up the remaining ment. After vising sites, looking at infrastructure, and pires Sept. 30, 2015. Under the program, 40 of 49 sub-Saha- tariffs in place. He said there are 316 tariff lines remain- meeting with ministries from different countries, our ran African countries are eligible to receive duty benefits. ing on imported products, covering primarily “sensitive” business delegation came to the realization that some “Given that Africa is home to the world’s fastest- agriculture and textile imports from sub-Saharan Africa. African countries had already laid the foundations nec- growing middle class and six out of the top 10 fastest- Froman said the U.S. “does not intend to open up” essary to attract significant foreign investment and were growing economies in 2014, it’s easy to see why global tariffs on “extremely sensitive” imported products from prepared to undertake the commitments necessary to companies like GE, Caterpillar and Procter & Gamble Africa, such as certain products in the agriculture and secure socially responsible investors.” increasingly view engaging with Africa not as a choice, textile areas, “but I think it bears some work to look McRaith added: “There is great excitement among but as a necessity,” Froman said. line by line to see whether there are lines that could be the apparel business community about this very near He said imports from AGOA countries to the U.S. have opened up without violating sensitivities.” growth opportunity in Africa,” ranging from cotton tripled, while U.S. exports to sub-Saharan Africa have in- But Froman stressed that tariff preferences alone growing and yarn spinning to weaving and apparel creased “fourfold” to $24 billion from $6 billion in 2000. are “not enough” for sub-Saharan Africa, which he production, but it hinges on a clear commitment from One of the options the U.S. is considering for expand- said must also address a host of issues, ranging from Congress to renew AGOA for a lengthy period of time to ing AGOA is renewal of the third-country fabric provi- infrastructure development to trade capacity building, spur the investment. 8 WWD WEDNESDAY, JULY 30, 2014

OUTDOOR RETAILER PREVIEW Yoga, Ath-leisure Set to Pace Outdoor Sector pany is talking to retailers like By KHANH T.L. TRAN Breathe by Body Glove Barneys New York to pick up the spring array. LOS ANGELES — At the up- Filson isn’t bringing its wom- coming Outdoor Retailer trade en’s products to Outdoor Retailer show, the unofficial slogan for because it’s no longer wholesal- exhibitors might be: Let’s get ing them. Sold only on its Web physical — and fashionable. site, the women’s business may As consumers adopt an athlet- return to wholesale in fall 2015. ic look in their sportswear and Instead, Filson is offering designers infuse more fashion unisex bags, dubbed the Black into activewear, the ath-leisure Collection, to women’s buyers crossover leads to opportunities at Outdoor Retailer. The classic for increasing revenue. Thus, shapes, including a duffel, tote Outdoor Retailer’s spring show, and computer bag, are crafted which kicks off its four-day run from rugged black twill with on Aug. 6 in Salt Lake City, is ex- bridle leather accents in Filson’s pected to get a boost over its pre- Seattle factories. Retailing from vious summer show that drew $275 to $425, the Black Collection some 5,000 attendees and more is expected to add to the compa- than 1,400 exhibiting brands. In ny’s sales, which are 10 percent fact, 1,569 exhibitors are project- higher this year than last year. ed for this year’s market. “We really continue to go Buyers at the show will be down the path of believing our greeted by bright colors and product should be made in the vivid prints in clothing collec- U.S.,” said Filson chief execu- tions. Coral and green are popu- tive officer Alan Kirk. “In previ- lar hues for women, while blue ous years, before 2012, a number and tan are the top tints for men. Be Up of Filson products were taken Designers have turned to a vari- Year-to-date sales of outdoor Activewear overseas. Our customers in ety of prints, from herringbone some cases got quite angry. The and geometric shapes to flowers sportswear are up almost quality wasn’t the same.” and palm trees, and borrowed The company brought all its ready-to-wear techniques like 5 percent, to $395.1 million, production back to the U.S. in 2012. cutouts. Contrasting color blocks For outdoor giant Patagonia, with print panels also are adding quality is viewed through an en- vibrancy to pieces, whether worn according to The NPD Group Inc. vironmental lens. In its spring to surf a wave or salute the sun. initiative known as Responsible “We always like to inject Essentials, the maker is only offer- color and our customers ex- ing sportswear that can be respon- pect it from us,” said Helena sibly and sustainably made. That’s Barbour, business unit direc- why it eliminated its sole rain tor at Ventura, Calif.-based jacket; it couldn’t find a recycled Patagonia Inc., which has cur- fabric that met its new criteria. rent sales of $600 million and Some new sportswear it’s bring- has posted strong growth every ing to Outdoor Retailer includes year for the past three years. nylon-cotton shorts for men and Sales of outdoor sportswear fair-trade yoga pieces for women. for men, women and children “We only take products that are climbing, according to are the best, but also have a so- The NPD Group Inc., a mar- ALVES cially responsible story, which is ket research firm based in Port a big deal for us,” said Barbour.

Washington, N.Y. Continuing an VANESSA “We kind of put our money upward trend, year-to-date sales BY where our mouth was.” have grown almost 5 percent to $395.1 million from $376.4 A duffel bag from Filson’s Black Collection. PHOTO million. Sales rose 7.6 per- cent to $992.4 million last year “Last year, I saw a 20 percent percent from a year ago but more retailers, the 61-year-old from $922.3 million a year ago. increase from the year before,” declined to disclose specific surf and swimwear company is Compared to figures for 2011, said Amy Wind, vice president figures. Introduced last fall, ac- using its name recognition to last year’s outdoor sportswear of sales at the 10-person com- tivewear now makes up as much stand out in the crowded active- sales showed a surge of more pany whose annual sales are as 15 percent of total sales. wear market. than 21 percent. less than $20 million. “I’ve seen “Overall in the next two “Not all of the [activewear] According to Yoga Journal, everyone from Sports Authority years, it’ll probably represent manufacturers have well-known which sponsors Outdoor and REI to off-price people and 30 percent to 35 percent of the names,” said Luke Hopkins, Retailer’s increasing- online sites.” business,” said Eric Fleet, co- Body Glove’s outdoor division ly popular zone for When retailers founder of Threads for Thought, manager. “It’s something the yoga-related exhibi- strive to build a which also operates offices in consumer can connect with tors, the number of lifestyle around Los Angeles and Kansas City, right off.” people who prac- activewear based Mo. “The product we do for the To differentiate itself from the ticed yoga grew on technical ma- fashion market has crossed over competition in the outdoor mar- fourfold to 16.3 terials, design- to the outdoor lifestyle market.” ket, Seattle-based Filson is fol- million in 2012 ers and brands Also jumping into wom- lowing a strategy to rank its prod- from 4 mil- must figure en’s activewear is Body Glove ucts as good, better and best. For lion in 2001. out how to International. The Redondo the last category, it’s offering C.C. Moreover, help them. Beach, Calif.-based company Filson, a men’s subbrand launch- the number The ap- is highlighting its new brand, ing this fall with Nigel Cabourn of yoga buy- proach taken Breathe by Body Glove, at at the design helm. Though the A color-blocked women’s ers at Outdoor by New York- Outdoor Retailer with 35 pieces, Brit heads his own namesake surf vest from Patagonia. Retailer’s July based Threads including sports bras, racer-back line that specializes in outer- 2013 fair spiked for Thought tanks, hoodies and leggings, wear, Cabourn whipped up eight Outside of Responsible Threads for Thought’s 123 percent from was to hire a in its debut spring collection. lightweight jackets that retail Essentials, Patagonia is also activewear for women. a year ago. women’s design Retail prices range from $10 to from $500 to $700, or 25 percent unveiling women’s swimwear Be Up Activewear benefits director from VF Corp.’s knits $60. As part of Breathe, it is also more than Filson’s main line, made of recycled materials, from the boom at Outdoor Retailer. brand, Splendid. Ashley Irey offering a trio of so-called hy- for spring. Among his creations boardshorts and warm-water Since the Miami-based company has joined Threads for Thought, brid pieces that segue between are hooded, zippered jackets, wet suits that are color-blocked began showing in Yoga Zone at overseeing the lifestyle-centric its swim line and activewear, washed shirt jackets cut out of in pink, black and gray. the expo, it’s seen business at its business, activewear and acces- ideally for athletes like paddle a herringbone-patterned cot- “The market is very saturat- booth steadily rise. In the first sories license. She assumes full surfers who stand exposed to the ton from Japan and vests made ed with products and brands,” year that it displayed its women’s control of the design direction sun. The hybrid styles include a of a tightly woven canvas. While Barbour said. “I’m not just talk- activewear that combines fashion with the fall 2015 collection. long-sleeve leotard, capris and the inaugural collection for C.C. ing about the outdoor market. and function in the yoga-specific Activewear in particular cropped rash guard. Filson will be available in Japan, There are a lot of disposable section, the traffic and orders is an avenue for growth for The activewear appealed to the U.K., Germany and in the brands. The challenge is differ- grew 10 percent from the previous Threads for Thought, which Swim ’N Sport, a 33-store chain U.S. at Filson’s own stores and entiating oneself and bringing year, when it sat on the main floor. said its total sales are up 30 that ordered the line. To attract on its e-commerce site, the com- value to the customer.” WWD WEDNESDAY, JULY 30, 2014 9 WWD.COM MW Aims to Be U.S.’ Top Men’s Wear Retailer

{Continued from page one} Laurens of the world. We should take a are on the rebound. For the fiscal second leadership role at Jos. A. Bank that we quarter to date, comparable sales are stand for modern and traditional.” up 3.6 percent at Men’s Wearhouse, 2.4 Men’s Wearhouse, in contrast, will be percent at Jos. A. Bank and 8.3 percent “a little more irreverent.” at Moores, the company’s Canadian divi- Abboud also revealed that the young- sion. Even the beleaguered K&G division, er-skewed Joe brand, formerly exclusive which has been under strategic review to J.C. Penney, would make an entrance since last year, is running 5.1 percent into the Men’s Wearhouse stores this fall. ahead for the period. Since being introduced into Men’s Ewert said that since the $1.8 billion Wearhouse and Moores stores this spring, acquisition of Jos. A. Bank was completed the Joseph Abboud branded merchandise last month, the company has been work- now accounts for 13 percent and 9 percent ing to integrate the two men’s wear chains, of sales, respectively, according to Blake. which will remain separate. Among the The label is currently in all Canadian findings is that there is “very little cus- stores and will be rolled out to all Men’s tomer overlap” between the two busi- Wearhouse stores by the end of October. nesses, with only 7 percent of customers “The early results have exceeded our ex- shopping both retailers over the past four pectations,” Ewert said, noting that the years. And even though 65 percent of Jos. brand is bringing in new customers and has A. Bank’s stores are within five miles of a The Joseph Abboud brand is now in all of Men’s Wearhouse’s Canadian stores. resulted in higher average ticket sales. Men’s Wearhouse unit, he added, “We have A typical Joseph Abboud suit, made in observed very little cannibalization.” the company’s New Bedford, Mass., factory, The Men’s Wearhouse customer is Jos. A. Bank store count, currently at 586, brand specific” with a “clear and dis- sells for $495, down from the $795 to $1,000 generally 25 to 55 years old, style-con- the decision on how and when to add tinct voice for each,” she said. And for retail that it was last season when it was scious and contemporary, he said, with stores will be made in the future. the time being, the aggressive buy-one- a wholesale brand. At Men’s Wearhouse, an average household income of $75,000 Tuxedo rentals, a cash cow for Men’s get-two-or-three-free promotions at Jos. made-to-measure suits can be ordered for a year. Jos. A. Bank, in contrast, appeals Wearhouse and a business that accounts A. Bank will continue. Although Men’s $100 more and are available in three weeks. to a shopper aged 35 to 59 years old for 17 percent of its revenue, or $430 mil- Wearhouse prefers a buy-one-get-one- One thing that Men’s Wearhouse is em- who is traditional and conservative and lion, is seen as a growth opportunity for free stance, Jos. A. Bank’s eye-popping bracing from Jos. A. Bank is its tailoring makes $100,000 to $125,000 a year. Jos. A. Bank. Currently, Jos. A. Bank’s tux- sales are popular with customers and system. Men’s Wearhouse employs an aver- Ewert believes there are major oppor- edo rental business is significantly smaller allow the company to clear inventory. age of 2.5 tailors per store with a seven-day tunities to increase sales at Jos. A. Bank and the firm contracts with an outside But long-term, the firm will “wean off the turnaround, while Jos. A. Bank only has one by growing tuxedo rentals, Made in the company to fulfill orders. Men’s Wearhouse most margin-erosive events,” she said. tailor on staff and uses outside seamstresses USA suits, made-to-measure merchan- owns its tuxedo inventory and has an in- She said the merchandise turn at and tailors to complete orders. “That model dise, updated traditional merchandise house dry-cleaning service to clean the gar- Men’s Wearhouse is 25 percent faster is more profitable,” said Mark Neutze, ex- offerings and the percentage of national ments. Moving Jos. A. Bank to that system than at Jos. A. Bank, but the company ex- ecutive vice president of store operations, brands. At the same time, the company will save $3 million, the company said. pects that by improving systems at Jos. A. noting that $3.5 million in savings can be re- will work to grow the sportswear pen- The Jos. A. Bank stores average 4,581 Bank, inventories can be reduced by $40 alized if $25 million of Men’s Wearhouse tai- etration — especially sweater sales — square feet compared to 5,710 square feet million to $60 million. loring orders are transferred to that system. at Men’s Wearhouse stores, a category at Men’s Wearhouse, raising questions on Blake said 98 percent of the merchan- The company is also hoping to boost its where Jos. A. Bank has an advantage. how to service the tuxedo customer in a dise at Jos. A. Bank is exclusive, as is 56 business in the fourth quarter when Jos. A. Overall, Men’s Wearhouse expects to smaller footprint. percent at Men’s Wearhouse. This gives Bank has traditionally posted better results. achieve $100 million to $150 million in Outside of tuxedos, Mary Beth Blake, the company over $700 million in buying Because Jos. A. Bank already oper- synergies from the combination of the executive vice president and chief mer- power, she said, noting that the company is ates 42 outlets, the company will put the two firms, executives said. chandising officer, said Men’s Wearhouse targeting $30 million in cost savings from brakes on its plan to add to its eight Men’s Specifically, this breaks down to $46 mil- sells 51 percent fashion merchandise and combined merchandising and sourcing. Wearhouse outlet stores. Although it had lion in general and administrative savings; 42 replenishment merchandise, while Although the Joseph Abboud brand of originally planned to open as many as 100 $30 million in cost of goods; $14 million in Jos. A. Bank sells 20 percent fashion and apparel is not going to be added to Jos. outlets, inheriting the Jos. A. Bank out- store savings; $8 million in e-commerce, 47 percent replenishment. Slim suits A. Bank stores, Joseph Abboud, the com- lets brings the company “way down that and $6 million in advertising and marketing, represent 45 percent of sales at Men’s pany’s creative director, will have some road,” said Kimmins. said Jon Kimmins, chief financial officer. Wearhouse and only 13 percent at Jos. A. input into Jos. A. Bank’s merchandise of- During a question-and-answer period Kimmins said that while 30 new Jos. A. Bank, “so we see an opportunity to grow ferings. He hopes to infuse the stores’ tra- at the end of the briefing, Ewert said he Bank stores will be added this year, the slim-fit at Bank,” she said. ditionally skewed merchandise with more hoped to soon provide an update on the expansion will then be put on hold until The same for big and tall. At Men’s fashion. He said classic men’s wear does planned “disposal” of the K&G division. Men’s Wearhouse has a better chance Wearhouse, the category accounts for 24.5 not have to be “stodgy. Traditional doesn’t And while its corporate apparel division is to review the operation of the chain. percent of sales, but only 11.1 percent at have to be boring.” By updating the look, performing well, he said it did not fit into Although he said the company believes Jos. A. Bank. he said, Jos. A. Bank can better compete the company’s “long-term goal to be the there is “some opportunity” to grow” the Even so, both chains will “remain with “the Brooks Brothers and Ralph largest men’s apparel retailer in the U.S.”

stepping down reportedly oc- in Asia, in Hong Kong, Seoul curred as the company laid off and China. Some small and ex- Rue La La Seeking Investors several employees in a staff re- tra-small sizes, such as zeroes, organization, Forbes said. probably do sell out faster. Our acquired SmartBargains, an previously held the same title On speculation about an initial buyers will make the [appropri- By VICKI M. YOUNG off-price e-commerce shopping at Vente-Privée USA. public offering by yearend, Peluso ate] adjustments,” Peluso said. site, in 2008. Ben Fischman, who In addition to its human said: “We’ve never said we were The ceo said “private label FLASH-SALE SITE Rue La La joined Retail Convergence in resource changes in the last doing an IPO. We’re not in a rush sales and return rates are has hired J.P. Morgan to help 2001, led the launch of Rue and 15 months, in May the com- and we don’t need the cash. We slightly lower than our name find investors. the acquisition of SmartBargains. pany added themes to its will do it when it makes sense.” brands. The main focus is on According to a spokeswoman, Retail Convergence was ac- DressingRoom series to allow Rue Peluso noted that the compa- our brand partners.” “Rue La La has experienced quired by GSI Commerce in members to identify items within ny last year “turned the corner Inventory is said to be a tremendous growth since being November 2009 for $350 mil- a look — think preppy, boho or on being profitable on an ad- struggle for some flash-sale purchased by Kynetic in 2011. lion in cash and stock. GSI was contemporary — from fashion to justed EBITDA [earnings before sites but observers said flash- To more fully pursue expan- acquired in 2011 by eBay Inc. home decor in one area of the site. interest, taxes, depreciation and sale site HauteLook solved that sion opportunities, the company for $2.4 billion. Michael Rubin, In an interview earlier this amortization] basis.” problem in 2011 when it was is working with J.P. Morgan to founder of GSI, bought back a 70 year, Davis said the site had re- While an acquisition of Rue acquired by Nordstrom for $180 identify potential investors for a percent stake in Rue, which is cord growth last year, with mo- could possibly help Gilt’s IPO million in stock, giving it a firm- round of growth capital.” now under the Kynetic umbrel- bile representing more than 60 road show when there is one, er connection with the higher- Over the years, since its la, Rubin’s new firm. EBay still percent of sales on certain days. there also has been continued end fashion brands that its par- launch in 2008, the Boston-based has a minority interest in Rue. The company is said to be ap- questions about the flash-sale ent already had. company has seen a number of Rue also is expanding on proaching $500 million in annu- model. Users have told WWD But even firms that have changes in its corporate struc- multiple fronts as it continues al volume, according to sources. that Gilt typically runs out of those connections don’t always ture. The company in January to push ahead in its niche in Reuters first reported Monday small sizes quickly. Sources fa- fare well. Sources said Vente- 2012 said in a regulatory filing the marketplace. that a sale of the company could miliar with inventory levels said Privée USA, a joint venture that it had issued $22 million in Lisa Rhodes joined Rue have a valuation of $400 million, the site has had issues securing between American Express equity and options as part of its as president and chief mer- and that its online competitor product and mixed results with and France’s Vente-Privée, equity plan, contrary to some chandising officer earlier Gilt Groupe might be interested. private brands. is doing just OK — despite speculation at the time that it had this month, reporting directly Michelle Peluso, Gilt’s ceo, Peluso said, “The company the French firm’s network of gone through a round of fund- to Steve Davis, who became declined comment. unequivocally has never had a 1,450 European brands and raising. The company doesn’t chief executive officer after A Gilt spokeswoman ac- problem securing inventory. This American Express’ market- seem to have done any fund-rais- Fischman left in April 2013. knowledged that Gilt’s chief year we had more than we can ing expertise — as it finds that ing in the last two years. Also on the team is Robin marketing officer Elizabeth take because, as you know, some consumers aren’t as partial to Rue targets high-net-worth Domeniconi, who became chief Francis is stepping down, which retailers have not been doing some of the unfamiliar brand shoppers. It was launched by marketing officer in September. Forbes, citing sources, said on well.” On small sizes, “We have a names despite discounts of up Retail Convergence, which also She also reports to Davis, and Thursday would happen. Her growing international audience to 70 percent off. 10 WWD WEDNESDAY, JULY 30, 2014

are you like on set with them? G.H.: I try to be more goofy when I’m on set now that I’m Model Call: more comfortable. In real life, I’m so goofy and super weird. I’m never mean but people don’t see the weird side of me. Like, I’ll be dancing around. My best friends will always say Gigi Hadid that they wish others saw that side of me, when I’m doing a weird dance, or weird faces “IS THIS kid’s life real? I mean, photo shoot. Dressed down or voices. I can do the best it’s crazy.” Gigi Hadid is talking in a white T-shirt, dark jeans Kourtney Kardashian voice about Romy, the already-famous and a Heidi braid, she talked ever [changes the pitch of her granddaughter of Carine about dating a heartthrob in the voice]. “Literally, Scott you’re Roitfeld — specifically the limelight (read: dealing with so disgusting, that’s psychotic. scene in 2013’s “Mademoiselle haters), being the only girl on But, literally, Scott you can’t C,” when Karl Lagerfeld takes Bieber’s tour bus and modeling call yourself a Lord because the newborn for a spin in a since infancy. — DAVID YI that’s so disrespectful. My mom slick Cadillac of a black stroller. is part of the Catholic Church “The kid’s life is nothing short WWD: Is it true that you’ve and not everyone has white of amazing,” says Hadid. been modeling since you were Lamborghinis.” I’m friends Funny coming from the an infant? with Kendall and Kylie and mouth of this 19-year-old, Gigi Hadid: I was always in sometimes I’ll almost slip whose own life has been front of the camera. My mom and say, “Literally Scott,” just pretty amazing as of late. The was really passionate about because I always say it. IMG-repped Hadid is photography — I have a newly minted Sports pictures of my whole WWD: Who’s part of your Illustrated swimsuit- life. I’ve always just been inner crew these days in New issue model, appears eye in front of my mom’s York City? in Tom Ford’s fall camera and it’s always G.H.: I have my hometown ad campaign and is comfortable to me. The friends, but I have my industry Roitfeld’s latest fave, first two years I was friends and I have some who having featured on the cover always on set with my mom. are in the middle, like Ireland of CR Fashion Book’s fourth When I was young, I did Baby Baldwin, which is great issue. As for her personal life, Guess and Guess Kids — Paul because she is genuinely one of Hadid on the that’s not too shabby either. Marciano saw me when I was a my best friends. When we’re in street during Hadid’s on-again-off-again baby and decided I was going L.A. we go to movies and hang New York beau is Aussie singer Cody to be his next whatever. After out, but when she’s here it’s Fashion Week TIMUR EMEK/GETTY IMAGES Simpson, and she counts Justin Guess Kids, my mom made me fashion week and we go to all in February. Bieber and the Kardashians as stop. She would not let me sign the events together. Those are with an agency until I was the friends I am closest with PHOTO BY 17 because she wanted because they understand both me to be a normal kid sides of me and that’s what I and accept myself for really cherish in people. I keep who I was. She knew the my hometown friends close. industry was going to judge me. WWD: How did you become

close with the Kardashians? Do WWD: How did the CR you all hang out often? Fashion Book cover shoot G.H.: It’s funny because Kylie with Carine Roitfeld come dated my ex-boyfriend. Before about? that, in L.A. we grew up G.H.: Stephen Gan asked knowing about each other but

IMG who he should meet never met. Kendall and for the shoot — and if he Kylie and I became FOR MORE PHOTOS, SEE was meeting with one, friends the week before who that person should this year’s Met gala. I WWD.com/eye. be and [they] said me. went to Rihanna’s party Stephen was shooting and stuff afterwards but and he had me meet didn’t go [to the gala].’’

BRUCE WEBER Carine and that was it. Now, I feel like I meet WWD: Your social presence with Carine every week is growing, partly due to the Hadid and Patrick Schwarzenegger for Tom Ford’s fall ad campaign. PHOTO BY because I feel like I have fact that you’re constantly in The cover of CR Fashion Book’s Issue 4. a shoot with her all the the headlines, once even with and you end up at the same doesn’t have a shirt on because time. She really pushes Justin Bieber. parties. In that case you just end we’re on a boat. And flirting? me, she believes in me G.H.: Justin’s a good friend of up both watching the Grand Prix What part of that picture says and we connect really mine, he’s awesome. I met him race from the same boat. That’s we’re flirting? Show me one sign well. Hopefully, my work in Cannes. Wait, that’s a lie. We how we ended up together. that we are flirting. I think you ethic and stuff keeps me know each other through my have to pick your battles. around her. I’m so grateful ex-boyfriend [note: they’re now WWD: How do you deal with to have her. on again], who is also signed to social media and the many WWD: When was the last time Scooter Braun and they toured messages you receive? you picked your battle? WWD: What’s the best advice together. That’s Cody Simpson. G.H.: I want to go off on people G.H.: Like, last week or two she’s ever given you? weeks ago. Someone tried to G.H.: The one thing she claim that I never loved my told me that was the ex-boyfriend because I broke biggest in my mind was our I was on the Bieber tour for up with him [because I was third shoot together. She in] Sports Illustrated. So I just asked me, “Are you happy two weeks. It’s gross. You have to get said [on Twitter] that you only today?” and I said, “Yeah, see just 1 percent of paparazzi of course, I’m so excited shots when we’re at dinner or to be here.” She said, “OK, used to not showering. out — that’s 1 percent of our in this job you have to be — GIGI HADID relationship. Like no one saw, happy all the time. Yo u you know, anything that’s real. I Backstage have to love what you’re love Cody to death and he loves at the Pirelli doing.” I was already I was on the Bieber tour for on Twitter so much. There’s this me. And he needed his time Calendar happy on set but it made two weeks. It was crazy but so one picture of a girl hugging to focus on his music and he’s shoot. me want to make everyone fun. I’m like one of the guys on Justin and everyone says it’s me the one who broke up with me.

OF PIRELLI PHOTO COURTESY else on set happy. It really tour, on a bus with 10 dudes. but it’s not me — she has brown We’re still best friends and I’ll changed how I work. I’ve It’s gross. Yo u have to get used hair and she’s wearing bracelets. always respect him and support close friends. (On a side note, been OK with becoming a happy, to not showering. They’re like, I wasn’t wearing any accessories. his career. But it’s really Hadid’s mother, Yolanda Foster, goofy weirdo on set. I don’t know, “How do you look so glam?” I’m Then they go off on me. Then hurtful when people try to do is a former model and stars on I just, I go to set every day trying like, “Dry shampoo.” So I met there are Web sites that are that. The most hurtful thing to Bravo’s “The Real Housewives to make other people happy [Bieber] a couple of times but saying, “Justin Flirts with Gigi me is when people try to put of Beverly Hills.”) because of her. we’re friends and everything Topless” and then you click assumptions on me and my WWD recently caught up with my ex-boyfriend is cool, on the picture and it’s me and relationship because that is not with the New York University WWD: You’ve worked with major and him and Justin are really Justin sitting on’’ opposite sides OK. Love is something that’s sophomore in between takes photographers including Steven close. So it’s all good. Yo u run of the boat. I’m looking one way really serious and private that on the annual Pirelli Calendar Meisel and Bruce Weber. What into all your friends at Cannes and he’s looking another and he you can’t try to claim or know. 2.5x7 (right)

WWD WEDNESDAY, JULY 30, 2014 11 WWD.COM

“Watches are a key accessory for both The GMD-S6900 comes equipped with an men and women and as an accessory EL backlight, three alarms, a countdown brand it was a natural evolution for us to timer and 48-city world time, and is FASHION SCOOPS available in nine colorways. expand into this category,” he said. “This isn’t our first time doing watches, but To promote the collection, Casio has POP UP PARTNERS: Talk about a sweet the French mountaineer who has been these newer styles really feel more like us. enlisted Victoria’s Secret model Josephine situation. Lisa Perry is unveiling a one- a key figure in the brand’s history. They offer a more modern clean aesthetic Skriver for the upcoming campaign, lensed day collaboration with Dominique Ansel The “K2 2014 — 60 Years Later” that better reflects the brand now.” by Maciek Kobielski. Skriver will also appear of Cronut fame this Saturday, when expedition is backed by Ev-K2-CNR, Saiger said that the entire process to in a short film for the brand, by creative she and the pastry chef will provide a nonprofit association that promotes create newer watches that director Magnus Berger. a mobile truck offering Pop It! Ice scientific and technological research better match his aesthetic The S Series will be Cream Sundae in a Can in front of in mountain areas and, together with took months. The result available in Perry’s boutique at 67 Main Street in the Italian Development Cooperation is two styles that were FOR MORE September at East Hampton, N.Y. and the Pakistani authorities, has completely designed in- SCOOPS, SEE select fashion Inspired by the root beer float, helped to create the K2 national park. house — from the casing to boutiques the sundae includes a mix of root To promote the Central Karakorum the color of the numbers — WWD.com. and jewelry beer and vanilla-chocolate National Park project, and include the M12 Swiss stores, as well chip ice cream, mascarpone Moncler has joined forces and the M24 Japanese styles. as G-Shock’s semifreddo, macerated with Ev-K2-CNR and the The Swiss, retailing for store in Manhattan’s cherries, mini marshmallows Pakistani team and will also $495, is made in Switzerland SoHo, and online. Prices and a meringue kiss — be taking part in the Keep and includes a Swiss-made range from $99 to $130. served in a chocolate-lined Karakorum Clean campaign. quartz movement and either — LAUREN MCCARTHY soup can that nods to Andy — LUISA ZARGANI an Italian leather strap

Warhol’s famed Campbell’s or one with rock-climbing OBIELSKI WHIFF OF FREEDOM: Soup artwork. The sundaes EXPANDING UNIVERSE: webbing. The Japanese K Luxury perfumer Caron — really big enough for Cynthia Rowley has inked a style will include a one- is marking its 110th two — sell for $15 each, and licensing deal with Highline handed Japanese quartz MACIEK anniversary with a new 20 percent of proceeds will United for a collection of movement that will display fragrance called Lady

go to City Harvest. They’re contemporary handbags. time without a second hand. PHOTO BY Caron. Inspired by available from noon until Set to make their debut The time will be marked off Josephine Skriver models a the Statue of Liberty, supplies last. this spring, there will be a in five increments. The face G-Shock S Series watch. the scent is a tribute to “Dominique was a bevy of styles to coordinate will come in gray, white and the French company’s perfect match for this with the designer’s various blue, with either an Italian founder, perfumer Ernest collaboration, as both of looks. Sporty backpacks leather strap, which will retail for $205, or Daltroff, who left Paris during World our brands celebrate art, The Pop It! Ice Cream will be geared for fitness a rock-climbing webbing, which will retail War II for the safety of New York. The pop culture and fun,” said Sundae in a Can. pieces and sportswear, and for $185. — DAVID YI scent features notes of magnolia, rose, Perry. “He infuses each of minaudières and delicate jasmine, raspberry and peaches with an his confections with creativity and evening bags will complement her G-SHOCK GOES FEMME: On the heels of its oak moss base and is based on Caron’s imagination and the end result is dress collection. 30th anniversary, G-Shock is looking to the perfume creator Richard Fraysse’s namesake always a treat in more ways than one.” Totes and satchels will also be part future with its first collection for women. fragrance from 2000. — MARC KARIMZADEH of the mix with retail prices starting at The G-Shock S Series marks the The perfume is priced at 105 pounds, $175 and going up to $350. In addition brand’s only line designed exclusively or $179 at current exchange, and will be HIGH NOTE: Sixty years after Italy’s first to the designer’s 60 freestanding for women. “The size, color and design sold starting in the fall at stores including expedition to the Himalayan peak stores worldwide, the handbags will are geared towards a fashion-forward Fortnum & Mason, Harrods and Les K2, Moncler has again supplied the be sold in department, specialty female that is looking for an accessory Senteurs in London. technical equipment to the team re- and online stores worldwide. Kenny to complement her modern and active “It is an homage to the Caron’s creating that climb. The attire of the Horowitz, president of Highline United lifestyle,” said David Johnson, president founder Ernest Daltroff, who fled Paris climbers, who reached the mountain’s said, “We wanted Cynthia Rowley as of Casio North America. “The collection and the Nazis for New York,” Fraysse told peak on Saturday, was inspired by the our first handbag license because of gives us a new look and new consumer to WWD. “Lady Liberty was the inspiration Moncler Lionel Terray Collection, on the exciting prints and innovative build upon in the future.” behind Lady Caron, an elegant floral sale at the brand’s boutiques starting materials she uses in her women’s To appeal to a female customer, Casio chypre with notes of magnolia, rose, in October and comprising six high- ready-to-wear collection.” has reduced the size of its classic G-Shock jasmine and a fruity punch of raspberry protection jackets. In 1954, when — ROSEMARY FEITELBERG watch, and will offer new colors and prints. and peaches.” Italians Lino Lacedelli and Achille The collection will consist of two styles: Founded in 1904 by Daltroff, Caron Compagnoni conquered the world’s RUN LIKE CLOCKWORK: Michael Saiger of the GMA-S110 and GMD-S6900. The GMA- produces men’s and women’s fragrances, second-highest mountain, they wore accessories brand Miansai has unveiled S110 features an auto LED backlight, five powders and accessories and has three Moncler down jackets that had been two styles that will become the new daily alarms, a stopwatch, timer and word boutiques in Paris and one in New York. fitted for the climb by Lionel Terray, main staple of watches in his line. clock, and is available in six colorways. — LORELEI MARFIL

People Stylewatch and will appear outdoor, online, on Rampage.com MEMO PAD and in store. The company declined to reveal the ad budget, but said the ON A RAMPAGE: Ireland Baldwin, the spend is up 25 percent due to an 18-year-old daughter of Alec Baldwin increase in print and digital. and Kim Basinger, will appear as the — LISA LOCKWOOD For more career opportunities log on to WWDCareers.com. face of Rampage’s fall campaign, following in the footsteps of Petra CLEANING HOUSE: In an effort to amp Nemcova, Bar Refaeli, Gisele Bündchen and up the fashion quota (and presumably Irina Shayk. advertisers), Good Housekeeping editor in chief Jane Spaces Francisco has recruited Lori Bergamotto as style COMMERCIAL director and Kristen Mascia as features editor. REAL ESTATE MANUFACTURER REPS WANTED They are among FashionFlow Apparel ERP Systems Current reps make $100k+. Our fashi- (ERP, MRP, PLM, AR, EDI, Mobile) on earbuds, iPhone cases sell in 5000+ four new hires at GH, Cloud-Based All In One Solutions stores. If you sell to fashion accessory Custom Setup & Integration Available buyers, email: [email protected]. but their roles are www.fashion-flow.com 212-244-4020 newly created posts. Aether Apparel is a Mens/Womens 33rd-57th St West-All Sizes PATTERNS, SAMPLES, Lifestyle Outerwear Brand Bergamotto was most Menswear Showrooms PRODUCTIONS Seeking a Qualified Full Time Store recently contributing D. Levy Adams & Co. 212-679-5500 Full service shop to the trade. Manager for a new Flagship Store in Fine fast work. 212-869-2699 LA.Start Date. Oct 1. Please submit style editor at Lucky resumes to [email protected] where she routinely talked trends on national Showrooms & Lofts USA Denim & Related Fabrics BWAY 7TH AVE SIDE STREETS Wholesaler of in-stock inventory TV shows. Mascia’s last Great ’New’ Office Space Avail seeking Sales Agent for target areas run was as Parade’s ADAMS & CO. 212-679-5500 in Central/ South America & Mexico. Must be bi-lingual.Please Contact: articles editor, a role [email protected] Ireland Baldwin for Rampage, photographed by Nino Muñoz. that involved editing cover packages, personal Woman’s private label sportswear This is the first solo campaign for essays and pieces, as well as excerpting manufacturer looking for experienced detail oriented account manager. Baldwin, who is signed with IMG Models. books for print and the Web. Proficient in excel, familiar with fabric In the ads, Baldwin models Another new hire is fashion testing protocols, cutting tickets, handling AD samples, and some Rampage’s dresses, feminine tops and director Kristen Saladino, who spent experience with overseas factories to fitted outerwear. She pays homage the last seven years as senior fashion set up garment inspections. Salary based on experience and proficiency. to Basinger’s role in the movie “9 1/2 editor at Self. Saladino succeeds Please send all resume’s to Weeks,” sexily posing behind window Jasmine Chang. One of her new office [email protected] blinds and eating strawberries. The ads mates in the Hearst Tower is April were shot by Nino Muñoz in New York. Franzino, a former GH-er who is now The campaign will break in back, this time as beauty director. She (800) 423-3314, or email [email protected] September issues of such magazines succeeds Nina Judar. as Cosmopolitan, Marie Claire and — ROSEMARY FEITELBERG

w30a011a.indd 11 7/29/14 8:03 PM 07292014200503 12 WWD WEDNESDAY, JULY 30, 2014 WWD.COM Norwest Takes Kendra Scott Stake Wal-Mart Continues Digital Push {Continued from page one} Doug McMillon took the helm as year from Kleiner Perkins Caufield president and chief executive offi- By MARCY MEDINA & Byers, Google Ventures, Marissa cer this year and last week named Mayer and others. The online shop- Greg Foran ceo of the U.S. division. FASHION JEWELRY brand Kendra Scott ping community’s 16 employees Tackling the online space is key has linked with Norwest Venture Partners, will join Wal-Mart’s team. to the company’s future. In addition the Palo Alto, Calif.-based investment firm, Pinterest has dominated the to focusing on e-commerce and mo- to bolster its growth in both the brick-and- social discovery category since it bile strategies, Wal-Mart’s purchase mortar and online arenas. came onto the scene in 2009 — it of startups like Luvocracy signals Founded in 2002 by Scott, the Austin-based has over $762 million in funding that the retailer wants to transform company has doubled its year-over-year under its belt — but social com- into a formidable online power- sales for the last four years to $50 million in merce is still up for grabs. Earlier house. Using the technologies it’s 2014, making it a ripe candidate for investors. this month, Facebook said it was acquired — from predictive intelli- Norwest declined to specify the amount of homing in on its commerce efforts, gence platform Inkiru to e-receipts its minority stake, but general partner Sonya testing a “buy” button. solution Grabble — it looks like Wal- Brown described it as “significant.” Although experts are skeptical Mart’s readying for more of a battle “The fashion jewelry space didn’t have a whether the social network will with the likes of Amazon and eBay. lot of branded players. It’s wonderful to have ever build a meaningful retail busi- Wal-Mart’s global e-commerce a genuine brand and personality like Kendra,” ness, Facebook is just one of the department — comprised of said Brown, adding, “She has 12 boutiques cur- many tech companies looking to walmart.com and @WalmartLabs rently and by November she will have 17, with build a toehold in Wal-Mart’s back — has about 2,500 employees that plans to total 30-plus by the end of next year.” yard. Wal-Mart, in turn, has been work out of headquarters in San In addition to Scott’s stores, which launched extremely busy in tech. Just last Bruno and Sunnyvale, Calif. in 2010, the brand is distributed in 1,000 whole- month, the company bought Stylr, a “There are some teams with sale doors nationwide including Nordstrom, fashion app that helps users search hard-core engineers who focus on Neiman Marcus and Bloomingdale’s. The ac- for apparel in nearby stores. Like how we can scale up our search en- cessible collection, made with mixed metals Luvocracy, that deal brought on gine to handle all of the queries to and colorful semiprecious stones, retails for key talent and seems aimed at per- our Web site. They’re obsessed with between $45 and $900 and is known for its sig- Kendra fecting tools to help consumers understanding the customer and nature faceted cuts and filigree. Scott find what they want. the industry,” Galbraith said in an Its customizable concept, called Color Bar, All these deals come against a interview earlier this year, calling first launched at Henri Bendel in 2010 before background of some serious chang- @WalmartLabs an “Internet com- going online then rolling out as a retail store es at Wal-Mart. pany within a retail company.” feature. “With retail and e-commerce today Earrings from the you have to find ways to engage your custom- Kendra Scott line. er. We’ve followed the personalization trend closely and believe there’s a lot of opportu- Ad Sales Drive Twitter Revenues nity,” said Brown. For her part, Scott, who will remain chief “That growth is primarily driv- executive officer, said, “We waited nearly 13 By EVAN CLARK en by higher engagement, which years to find a partner. Now we have the op- translates into improved [return portunity to accelerate our growth even more INVESTORS drove shares of on investment] for our marketers,” and go into new product categories.” Twitter Inc. up 29 percent in after- he said. Norwest, a multistage venture and growth hours trading Tuesday after the The company said its average equity investment firm, has funded companies company showed that it was gain- monthly active users rose 24 per- across the tech, information and financial ing ground as an advertising plat- cent versus a year earlier to 271 services, consumer products and health-care form with second-quarter sales million, a slight drop off from year- sectors, and has made investments in fashion that easily outpaced expectations. over-year growth of 25 percent in retail and e-tail companies such as Bailey 44, Twitter’s revenues for the the first quarter. ModCloth, Gilt Group, Gemvara and beauty quarter shot up 124 percent to Still, Twitter still has some work companies PCA Skin and Madison Reed. $312.2 million — well ahead of to do when it comes to getting that the $283 million analysts project- consumer attention and the associ- ed. Advertising revenues made ated advertising clout to reverber- up more than 88 percent of the ate on its bottom line. total top line. The tech company said its net Uniqlo Opening Chicago Flagship The 140-character messag- losses for the quarter ended June ing service has been working to 30 widened to $144.6 million, or prove to Wall Street that it can 24 cents, from $42.2 million, or 32 ing markets such as Northern California and compete against larger rivals, cents, a year earlier. On an adjusted By SHARON EDELSON metro New York,” said Meyer, citing Walnut particularly Facebook. basis, the company logged earnings Creek, Calif., Willowbrook Mall in Wayne, Dick Costolo, chief executive of- of 2 cents a share, better than the 1 UNIQLO isn’t entering the Midwest quietly. N.J., and Roosevelt Field Mall in Garden ficer of Twitter, called out the com- cent loss Wall Street predicted. Its first store in the region will be a City, N.Y. pany’s trajectory in the ad business Shares of the company gained 60,000-square-foot flagship at 830 North Last month during a speech at the Japan to analysts on a conference call. $11.26 in after-hours trading to $49.85. Michigan Avenue in Chicago, the Japanese Society, Meyer said the retailer wants to be- retailer’s second largest store in the U.S. The come dominant in the U.S. For that to hap- Chicago unit is set to open in fall 2015 in the pen, the American business will have to heart of the city’s downtown and part of the generate meaningful numbers, Meyer said, Kao 1st-Half Profits Up 73.3% Magnificent Mile, where neighbors will in- adding that the U.S. must contribute sig- clude Topshop and H&M. nificantly to the company’s $11.6 billion in in this category would have slipped Only Uniqlo’s global flagship on worldwide sales. Uniqlo, he pointed out, does By KELLY WETHERILLE by 0.2 percent. Manhattan’s Fifth Avenue surpasses the $7 billion in its home market of Japan, which The company said that while Chicago store in size with 90,000 square feet has a smaller population than the U.S. TOKYO — Kao Corp. said Tuesday sales of cosmetics decreased com- of space. Uniqlo stores range from 30,000 “We will become a multibillion-dollar that its first-half net profit grew by pared with the same period a year square feet to 40,000 square feet on main company in the U.S.,” he predicted. 73.3 percent on a low comparative earlier, sales of skin-care products streets in midsize cities and 10,000 square “We hired a lot of people in the last year,” base resulting from an extraordi- increased and hair-care product feet to 40,000 square feet in regional and Meyer said. “We will now fill out [the ranks] nary loss it booked in the same pe- sales were flat. super regional malls. below them. I want to stay away from looking riod a year earlier. Geographically, Kao saw in- “Chicago is a global city that’s home to at specialty retail. I want e-commerce people Kao’s net profit for the six creased sales in every area in which some of the finest cultural and sports insti- and big-box people, where the volumes tend months ended June 30 totaled it operates. Its biggest growth came tutions in the world, and we are [pleased] to be higher. We built [a team] for the entire 31.65 billion yen, or $308.9 million from Asia, excluding Japan, where to join the city’s rich landscape,” said Larry U.S. rollout of the first 100 stores.” at average exchange rates for the net sales rose 22.2 percent to 116.9 Meyer, ceo of Uniqlo USA. “We look forward Staffing up the company has been a prior- period. Last year’s extraordinary billion yen, or $1.14 billion. to bringing our innovative, high-quality ap- ity for Meyer, who said, “It’s important that losses were related to the volun- The company also lifted its net parel, world-class customer service and we continue to build out the teams to oper- tary recall of more than 50 Kanebo sales guidance for the current fiscal modern, bright store aesthetic to the people ate our stores. Because of our dedication to brightening products, which were year, ending Dec. 31. The company of Chicago.” high standards of customer service, it takes shown to leave white spots on the now expects sales to grow 5.7 per- With only 21 stores in the Northeast and a lot of time to train people and we do that skin of some users. cent to 1.39 trillion yen, or $13.65 San Francisco, Uniqlo will nearly double its as we expand. It takes time to build out those Operating income increased by billion at current exchange. This is fleet in the fall when it launches 18 units in ranks. We need to be recruiting all the time.” 14.9 percent to 49.35 billion yen, or up from a previous forecast of 1.37 eight weeks. That’s a more aggressive sched- Meyer said the Chicago store will incor- $481.7 million. trillion yen, or $13.45 billion. ule than last fall’s 10 store openings. porate all or most of the product categories Net sales for the period grew Kao left unchanged its full- On Aug. 29, Uniqlo will unveil six stores, sold in the Fifth Avenue flagship. All of the 6.6 percent to 665.94 billion yen, or year net and operating profit including a flagship in Boston, followed new fall stores have 100 percent eco-friend- $6.5 billion. In its beauty care seg- guidance. It predicts net income by units in Philadelphia and Southern ly store design with LED lighting, greener ment, which includes brands such will increase by 15.8 percent to 75 California, including South Coast Plaza in materials and high-efficiency elements as Jergens, Bioré and Kanebo, sales billion yen, or $736.51 million. It Costa Mesa, Calif., and Beverly Center in throughout. Women’s and children’s prod- grew 1.8 percent to 283.5 billion expects operating income to grow Los Angeles. ucts will be presented as specialty shop-in- yen, or $2.77 billion. Excluding the 4.3 percent to 130 billion yen, or “Those 18 stores include some in exist- shop environments. effects of currency translation, sales $1.28 billion.