Kate Spade at 20 the Brand Built from a Simple Nylon Bag Has Been ﬂying Its Colors for Two Decades

WWDMilestonesSECTION II Kate Spade at 20 The brand built from a simple nylon bag has been ﬂying its colors for two decades.

▲ AGGRESSIVE GROWTH PLANS ■ Design Extensions ▲ THE DIGITAL PLAY ■ Kate & Andy: What are they up to?

Headband, holiday 2011; necklace, spring 2010; dress, holiday 2012; ring, fall 2011; Sam bag, 1993. Photo by Kyle Ericksen; Styled by Roxanne Robinson 2 WWD MONDAY, FEBRUARY 4, 2013

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auguration ceremony last month. But despite the brand’s roaring A look from start, things weren’t always so bright. Kate Spade Founded in 1993 by Kate and Andy Saturday. Spade, along with partners Pamela Bell and Elyce Arons, the brand de- PHOTO BY JOHN AQUINO PHOTO BY

veloped a cult following for its coveted ERICKSEN KYLE PHOTO BY boxy handbags and accessories. In 1999, it was sold to the Neiman Marcus Group, which was eventually taken over by private equity firms Texas Pacific Group and Warburg Pincus. Over time, the brand lost its mojo, didn’t develop new customers and its growth stalled. In November 2006, Liz Claiborne Inc. (now Fifth & Pacific Cos.) acquired the Kate Spade brand for $124 million and set out to re- claim its role as a premier accessories resource. The Spades left in 2007. Claiborne installed Craig Leavitt and Deborah Lloyd as copresidents and began updating the handbag designs and expanding the firm’s retail and wholesale presence. Leavitt was pro- moted to ceo in 2010. When Leavitt joined, there was plenty of work to do. “When I got here, we like to say the brand was asleep,” said Leavitt, in an interview at his offices at 2 Park Avenue in New York. “It wasn’t to say the brand wasn’t strong. It had a great foundation and a great DNA. It had drifted off the radar a little bit and was a bit of niche brand, but with a really strong foundation. We wanted to figure out how we take that strong foundation and build that into something bigger, more relevant in the marketplace and more meaningful.” For the first six months, Leavitt believe we came out of the recession worked on developing a strategic plan faster and stronger than some of our and road map on how they were going competitive set.” to accomplish the turnaround. Further, he added, it didn’t make sense “Just when we were beginning the in the long term for the brand to take a execution of that, the world came off step backward just when it was beginning its wheels with the global recession,” to move forward. “We came out of the said Leavitt. other side pretty quickly and it’s been a They had some tough decisions to rocket ship since then,” he said. make. They had developed this stra- So how did they accomplish tegic plan and suddenly they were their goals? Craig Leavitt trapped in this financial situation. “We “It always starts with great product,” had to decide whether we stuck to that said Leavitt. During that time period, plan or dramatically modify it to meet they decided to launch jewelry and the needs of the crisis,” he said. ready-to-wear in-house. “We had deci- Because the company had just start- sions to make. Did we want to wait and ed to execute the strategy, the team felt catch a rising tide as the overall econo- Growth Spurt strongly that they needed to forge ahead. my improved? Or did we want to push Therefore, they didn’t do things that through with our strategic plan? We de- Ceo Craig Leavitt lays out his expansion plans as Kate some of their competitors did, such as cided to push through, and it turned out roll back retail prices or “skinny down to be the right decision not only for us Spade continues to blossom. By Lisa Lockwood the line.” “We felt we needed to excite as a brand, but from a product perspec- the consumer with compelling prod- tive. We brought color and optimism to uct and a consistent and cogent brand the market at the time. It turned out IT’S GOOD TO BE KATE. stores, expanding international sales, story,” he said. “We pushed through. We that was just what the consumer was As the crown jewel of Fifth & Pacific and broadening its product offerings probably bottomed out even further than looking for during those dark days.” Cos. Inc., the Kate Spade brand is per- to tap into a younger customer — and, some other companies did at the time. Consumer reception to the new colating on all fronts, from product of course, getting kudos for outfitting We didn’t have this knee-jerk reaction in lines was strong from the outset, said to geography, opening freestanding First Daughter Sasha Obama at the in- terms of promotional pricing. I strongly {Continued on page 4}

January 1993: Kate Spade 1998: Kate Spade ▼ The company begins a major launches with a collection licenses Libretto LLC Neiman Marcus expansion in Asia.

of nylon bags. for▼ stationery items. Donna Karan alum 1995: Sales crack $1.5 Stephen L. Ruzow joins the million in annual sales. ZACK SECKLER PHOTO BY company as chief executive officer with a goal of making 1996: Kate Spade opens it a worldwide brand. He de- Stephen

its first shop in New parts after three months. YUKIE MIYAZAKI PHOTO BY Ruzow York’s SoHo, at 59 ■ It opens its first store Thompson Street. in Japan. ■ Sales hit $6 million. ■ Revenue is approximately $27 million. ■ Jack Spade launches. Estée Lauder Cos. Inc. to develop ■ The company wins a victory against 1999: In February, Neiman Marcus beauty and related products, which Gap’s Banana Republic unit, which pays $33.6 million to acquire a 56 hit stores in 2002. agreed to stop selling copies of the percent interest in the company. designer’s bags, settling out of court. Founding partners Kate and Andy 2000: Launch of footwear. Spade, Pamela Bell and Elyce Cox 1997: The company settles stay on to run the brand’s day-to- 2001: Eyewear makes its debut. similar infringement cases day operations. against Kmart, Dayton/Hudson ■ Jack Spade’s first store opens at 56 2002: As it approaches its 10th anni- and mass-market manufacturer Greene Street in SoHo. versary, revenues are approximately The Aoyama ﬂagship in Tokyo. Accessory Network. ■ The company teams with the $70 million. {Continued on page 4}

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{Continued from page 2} Leavitt. “Those things were critical to us. They helped drive the clarity about what we were moving toward, which was a global lifestyle brand.” Cultivating both the direct-to-consumer (via vertical retail and e-commerce) and wholesale aspect of the business has

been a critical component of the Kate THOMAS IANNACCONE PHOTO BY Spade strategy. Today, 55 percent of Kate Spade’s business is direct-to-consumer, and 45 percent is wholesale. Among key wholesale accounts are Neiman Marcus, Nordstrom, Bloomingdale’s and Lord & Taylor. Leavitt said the current ratio is good, and he believes that, over time, direct-to-consumer penetration will grow, but not dramatically so. “We really be- A logo for the 20th anniversary. lieve in a multichannel approach to our business. We have a very strong whole- early 2014. Places like Australia, Brazil, sale business and great partners. We see Latin America and India are also being continued expansion in that channel as viewed as expansion opportunities. well,” said Leavitt. Leavitt said it has used the U.K. Pete Nordstrom, president of mer- over the past year-and-a-half as a chandising at Nordstrom, praised the learning tool before attempting a sig- Kate Spade operation. nificant entry into continental Europe. “Kate Spade is a great partner in all The company has a wholesale busi- classifications and channels — in stores, ness in Germany and is looking for online and in Nordstrom Rack,” he said. wholesale expansion in France this “We’ve been partners for over a decade, year, with more to come in Europe as and they are one of our most successful the brand moves forward. brands. Kate Spade is laser-focused on “One thing that’s important to us is the customer, bringing creative ideas that we position the brand very simi- and exciting product that resonate with larly in all regions around the world,” customers in a powerful way.” said Leavitt. He said the brand is not Kate Spade’s financial results tell a positioned higher or lower than it is in compelling story. the U.S. “We take a pretty consistent ap- In the fourth quarter ended Dec. 31, proach and that’s been really important. Kate Spade’s comp business increased It’s a very small world. The consumer’s 27 percent. The company has expe- traveling and seeing the product online.” rienced between 22 and 38 percent The Fifth Avenue store in Manhattan. Leavitt believes a consistent ap- quarterly comps all year. “It’s been proach to assortments, brand messag- very strong and we’re seeing contin- Georgia and Colorado, as well as a new this potential development, see story on ing and pricing strategies has been a ued strength. We were very happy with flagship on Madison Avenue, expected William McComb, page 12) big part of its success. holiday, pushing through Hurricane to open in late spring. In November, Kate Spade completed When Kate Spade decides to add Sandy’s impact in this region and wind- Looking at the whole picture, its deal to buy out its Japanese joint- more product categories, it frequently ing up with great results,” Leavitt said. Leavitt sees growth across the board. venture partner. It acquired the 51 takes the licensing route, but a number In 2012, Kate Spade was expected “Really, that is most important to the percent interest held by KSJ Co. Ltd., of products have also been developed to contribute between $94 million and future opportunity of the brand,” he a subsidiary of Sanei International Co. in-house. $95 million in earnings before interest, said. “We are seeing very strong growth Ltd. The purchase price for the Kate “It’s depends on whether we feel we taxes, depreciation and amortization. across every product category of busi- Spade Japan buyout, including debt can provide the expertise to deliver a And the contribution for 2013 is ex- ness and every geography as we look at repayment, related transaction fees product with excellence,” Leavitt said. pected to be between $130 million and our global business. For us, that’s the and use of Kate Spade Japan’s cash on The company launched apparel and $140 million. For the fiscal year ended most exciting thing about our growth hand, totaled $47.6 million. Japan is jewelry internally. Last spring it intro- Dec. 31, 2011, Kate Spade achieved net — that it’s not weighted heavily to one the brand’s largest market outside the duced watches internally with “great sales of $312.9 million, a 69.8 percent region or one product category.” U.S. (See sidebar, page 6.) results,” said Leavitt. (See related story increase versus the previous year. The company expects to grow the Besides owning its business in on licensing, page 28) At present, the company operates 93 business in the low teens for the bal- Japan, Kate Spade has a direct subsid- “We feel that we know our customer directly owned stores in the U.S., U.K. ance of the year. iary in South America, based in São so well, so where we either own or can and Brazil, and has 91 international This success has spawned rumors Paulo, Brazil. Its stores in the U.K. are incorporate the appropriate experi- points of distribution via joint ventures that Fifth & Pacific could potentially also directly owned. ence to deliver an excellent product, and distribution partners. In the U.S. spin off a piece of the Kate Spade busi- In China, the brand has a joint ven- we’re going to do that internally.” alone, the company has 69 Kate Spade ness, but Leavitt declined comment on ture operating Kate Spade China. The So who exactly is the Kate Spade stores and seven Jack Spade Stores. any rumors of a spin-off. “There’s al- operation saw significant expansion in customer? Leavitt described her as This year, Kate Spade seeks to open ways speculation. We have a great rela- 2012, with more coming in 2013. The “quick and curious and playful and an additional 40 stores in the U.S. tionship with our parent company, and company has distribution arrange- strong.” “That’s what we say internally across all its brands: Kate Spade, Jack we’re focused on what we need to do ments in the Middle East, Hong Kong, to help us identify her,” he said. He Spade and Kate Spade Saturday. The here and are not distracted by the rumor Southeast Asia and Korea, and has said also believes she’s an educated woman, company plans to open more stores in mill.” Fifth & Pacific plans a Kate Spade it has plans to buy back its distribution who’s interested in culture, whether such places as Texas, Ohio, Indiana, Investor Day on March 15. (For more on in Hong Kong and Southeast Asia in {Continued on page 6}

{Continued from page 2} flagship opens in the Aoyama 2011: Bedding and bath products ■ The first Kate Spade fragrance district of Tokyo. are introduced. makes its debut. ■ Kate Spade opens in Brazil and 2006: In November, the company is sold the Middle East. 2004: Kate Spade launches home; to Liz Claiborne Inc., now known ■ Brad Goreski is hired as brand stylist.

e-commerce is introduced, and a as Fifth & Pacific Cos.▼ Inc.

2007: Deborah CENTENO TALAYA PHOTO BY 2012: Watches are launched. Lloyd joins the company as 2013: The brand marks its 20th Deborah Lloyd and

creative▼ director. anniversary with the 2008: Craig Craig Leavitt, 2009. theme “The year of Leavitt joins as Things We Love.” copresident, along- ■ Kate Spade Japan, a joint ■ Kate Spade

side Lloyd. He is venture, begins operations. ▼ Saturday launches. named ceo in 2010. Live Colorfully, a ■ Jewelry 2010: The company opens fragrance developed launches. in the U.K. in-house, is set to ■ A fragrance deal is launch in April. 2009: Kate signed with Elizabeth Spade launches Arden. The first scent ready-to-wear under this pact, Twirl, hits SOURCES: KATE SPADE; and legwear. stores in September. WWD ARCHIVES CHO LTD. Maker Of Fine Leather Goods

CONGRATULATES KATE SPADE ON

INCREDIBLE YEARS 6 WWD MONDAY, FEBRUARY 4, 2013

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{Continued from page 4} “We discovered there’s a that be literature, adventure, younger customer who aspires travel or the arts. “She likes to be part of the Kate Spade to be the most interesting New York brand, but maybe person at a cocktail party. isn’t ready for it in her life She likes to stand out yet. Perhaps she doesn’t in a crowd. That’s why have the cocktail party to she embraces color and go to after work. Maybe graphics so well.” she’s going to a bar in- According to Leavitt, stead,” he said. “She has some discre- He added that the tionary income. She’s 25 brand captures a lot of the to 45 years old and she same spirit, color, graphics can live anywhere but be- and optimism of Kate Spade cause of her interest in cul- New York. “And while there’s ture, she either lives in or a shared DNA, it’s a very dif- around a city, or at least gets ferent aesthetic as well. to travel to cities on a regular “We’ve been nurturing basis.” Basically, she likes a bit this idea for quite some time,” of polish in how she puts herself noted Leavitt. “We wanted together. “She’s going to be that to launch it at a time when Sasha Obama, woman in the great polka dot we were really playing from seen here with dress at the cocktail party who strength. You see a lot of brands big sister Malia, everyone’s standing around Watches are launching additional lines when wore Kate chatting with,” he said. produced there’s a weakness in their par- Spade to the As for a preteen like 11-year- internally. ent line, and it’s a way to bolster Inauguration old Sasha Obama wearing the their sales and profits. We took last month. line to the inauguration, he said, “We a different approach. We were waiting have such a broad customer base. Our for Kate Spade to be on really solid WIN MCNAMEE/AFP/GETTY IMAGES PHOTO BY core customer is 30 to 45, but we have ground with a great business trajectory esting wholesale plays in the future.” for others, and also fits well with the customers who are teenagers and those and great improvements in profitabil- Leavitt said he and Lloyd have a great customer buying luxury products. “We in their 60s and beyond. [Sasha] looked ity and seize the moment to launch this working relationship and that’s been a are able to draw up and down.” great. She wore the product really well. brand. That’s why we chose this time.” key part of their success. “She’s a terrific And industry observers like what She looked like a young lady.” The brand will launch in Japan next creative director. We complement each they’re seeing from Kate Spade. And then there’s the woman who month. That introduction will be fol- other’s skill sets. What’s great is that… “They’re on fire,” said retail ana- can’t afford Kate Spade, but aspires lowed quickly with e-commerce in the she also has a real desire to understand lyst Jennifer Black of Jennifer Black & to be part of the lifestyle. For her, the U.S., as well as American brick-and- the commercial nature of our business.” Associates. “I think Deborah Lloyd is re- company is launching Kate Spade mortar stores initially focusing on New Leavitt says the company is well-po- ally talented — she’s so whimsical and Saturday this month. The line, which York and Los Angeles. “Right now, we’re sitioned. “We’re in that sweet spot,” he her stuff is so different. It’s almost a con- addresses a woman’s casual needs, is seeing this as a vertical model,” said said, noting that the brand can be as- versation piece. They have a lot of poten- geared to a younger consumer. Leavitt. “But there could be some inter- pirational for some, accessible luxury tial globally. They’re just getting started.”

for uniform product ranges around the The store in Aoyama. world, Kate Spade Japan’s merchandis- ing team frequently makes suggestions to the company’s head office in New York about styles or modifications that would work well in the Japanese market. Often, these products designed with a Japanese consumer in mind go on to YUKIE MIYAZAKI PHOTOS BY sell worldwide. Yanagisawa explained how this process resulted in a mini ver- sion of a metallic basket-weave tote for spring, in line with Japanese women’s preference for smaller handbags. “The creative director [Deborah Lloyd] knows that we love ribbons, so she introduces ribbons and bows every season,” Yanagisawa said. “By doing that, the [individual] market needs start influencing each other.” Similarly, the Japanese market has influenced the way Kate Spade approaches apparel. For spring 2012, Ayako the company started rolling out a size Yanagisawa range of clothing called “Fashion Fit,” featuring smaller sizes, longer torsos and proportions suited to Japanese and nificant change in the mentality of young smaller Asian body types. This more pe- Japanese women, who have lived much of Japan Continues to Thrive tite range of clothing, which originated their lives in a recessionary environment. as a request from Kate Spade Japan, They care less about logos and brand TOKYO — Japan was one of Kate Spade’s Pretzels — a move that targets young sells both in Japan and in international names than past generations, she said. first foreign markets, and it’s clear that Japanese shoppers who love food and stores targeting Asian customers. “People are becoming more mature the country still plays an important role hanging out while shopping. Last year, Kate Spade took its Japanese and sophisticated and finding a reason in the brand’s global strategy. “We wanted to have something to business in-house by buying out the con- to buy,” Yanagisawa explained. “I think It is the brand’s second-largest market show the brand’s American roots and trolling stake held by its former partner, they are looking to be inspired by the after the U.S. lifestyle,” Yanagisawa said. Sanei International, in their joint ven- brand or [identify] with the lifestyle.” The company currently has 53 Kate Kate Spade is registering signifi- ture Kate Spade Japan. Sanei and Kate Yanagisawa said the March 2011 Spade points of sale and one Jack Spade cant growth here, in stark contrast with Spade formed the joint venture in 2009. tsunami that struck northern Japan store in Japan, and it plans to roll out many other luxury goods and fash- Kate Spade has a long history with the brought that trend into sharper focus. more than 10 more doors this spring. ion players. Sales for the year ended Japanese company: Sanei, acting as a In line with the experience of many One of the more high-profile openings Aug. 31, 2012, rose 20 percent to 7 bil- distributor and a licensee, brought the other fashion and luxury goods play- will come in early March, when the com- lion yen, or $88.90 million at average American brand to Japan in 1996. ers, Kate Spade saw a steep drop in pany will unveil the first retail store for exchange. Yanagisawa attributed the Yanagisawa, who became chief ex- sales immediately after the disaster, but Kate Spade Saturday, its new, younger, growth to a series of factors, includ- ecutive officer of Kate Spade Japan in business recovered relatively quickly in more accessibly priced line. The store ing an aggressive retail expansion, the 2009, said the Sanei partnership was a a few months, the executive noted. She will make its home in the Harajuku launch of new product categories like fruitful one but ultimately it made sense added that shoppers were eager to lift neighborhood very close to a well-traf- jewelry and watches and a shift in mar- for Kate Spade to fully own the brand as their spirits with bright-colored and ficked Marc by Marc Jacobs store. keting resources to younger consumers. it plots further international expansion. patterned merchandise. “This global lifestyle brand is start- The Saturday brand retail launch is “We were mature enough to be “People were really looking for ing in Japan. We are going to be the just the latest example of how the compa- owned,” she said. something additional, on top of just buy- first,” said Ayako Yanagisawa, president ny embraces local consumers’ tastes and In Japan, Kate Spade’s target consumer ing handbags or just buying clothing,” of Kate Spade Japan. The new store uses them to shape its global approach. is a working woman, age 25 to 35, who lives Yanagisawa said. “I think it’s going to be will feature a café selling Sigmund’s Unlike many other brands that strive in a big city. Yanagisawa has noted a sig- a permanent shift.” — AMANDA KAISER

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WWD MILESTONES Pre-fall Lloyd’s upbringing was ﬁlled with fashion nuances. “I had an aunt who was a fashion designer-cum-model in the Sixties,” she recalled. “She was always an inspiration. She traveled around the world

PHOTO BY JOHN AQUINO PHOTO BY and she’d bring me back the most incredible, completely outrageous costumes. I used to customize these to be able to wear them.” There was also her adven- turer grandmother who, at 60, emigrated to Australia. “She went around the world and sent me dolls from all these different countries she visited, with the national costumes,” Lloyd said. All this instilled a fashion bug in her. “I wanted a new challenge,” she During one “career evening” at said. “Something creative, more de- school, Lloyd decided she wanted to signer, something I can really build. I become a fashion designer and she had a little check list of what I want- enrolled at London’s Ravensbourne ed next. When [recruiting executive] College of Art and Design. Following Karen Harvey called me, she knew she her Bachelor’s degree, she earned a had a minute to sell me on it. When I Master’s at the Royal College of Art started to think about it, I knew this job specializing in men’s wear. Fresh out of ticked every single one of those boxes. school, she was tapped by Byblos, where “It had a very strong DNA, and she worked with Keith Varty and Alan there was a huge opportunity to work Cleaver. “I was whisked into this jet-set- with that DNA and take it from this ter world,” she remembered. “They sent beautiful niche jewel to something me on my first trip to America. I stayed bigger and extraordinary,” she elabo- with them for about 18 months but rated. “The brand tenets haven’t really Ancona, Italy, can be a very small place.” changed. It’s always been colorful. It’s She relocated to Paris for a job at always been bold, playful, sophisticat- Daniel Hechter, which was followed ed and timeless. It’s taking all of those by Kenzo Jungle. After a brief stint at pieces that existed in one bag, and Aquascutum, she eventually landed then blowing them out across so many at Burberry in London, we she stayed different categories.” for six years and spearheaded the The first extension was costume Burberry London label just as Rose jewelry. Then, two years in came a Marie Bravo was starting a complete complete assortment of ready-to-wear, brand overhaul. “That’s where I got marking a major accomplishment for my big break,” she said, “I learned so the brand, which had dabbled in rtw much about what makes the DNA of a before but never in a significant way. brand. When I went in, it hadn’t really “It suddenly gave people the picture been touched.” of the Kate Spade woman,” Lloyd re- Then Banana Republic came call- called. “This is what she looks like, ing. Not just did this mean she would this is what she feels like. The launch relocate to New York, but Lloyd also of ready-to-wear was the big ‘aha’ mo- oversaw men’s, women’s and acces- ment that changed everything.” Deborah Lloyd sories, the latter of which, she noted, Even though the timing of the “became a new challenge to me and launch — right around the worldwide something new to learn.” financial meltdown — was far from Her extensive experience laid the ideal, it proved to be a boon. foundation for her next big job: cre- “Anybody on paper would have told ative head of Kate Spade New York. us it’s the worst and craziest thing to do, Colorful Prospects but actually, in the end, it was the best thing we could have done because it di- versified our risk, in a sense,” she said, Deborah Lloyd taps the DNA of the brand. because the company was no longer By Marc Karimzadeh reliant on just one category. “And we got interest in the brand as well. When everybody’s collections were reflecting DEBORAH LLOYD embodies the Kate Today, Lloyd oversees all touch the gray, terrible financial environment Spade New York woman in more ways points of the brand from handbags to out there, we came out with a collec- than one. the design of the fragrance bottle and tion that was joyous, colorful and play- The brand’s president and chief she has, since her arrival, made the ful, and made people smile. It was hard creative officer is a collector of vintage bow a major feature that nicely aligns to make people part with money, jewels and clothes — i.e., cocktail dress- the various categories. but they suddenly wanted [our es — as well as fashion illustrations and “One of the hardest things is to define product] because we were doing eclectic art, which she displays in the what the brand tenets and design something that stood out from the Brooklyn brownstone she shares with tool box can be for Kate Spade crowd, which was very important. her husband, Simon Arscott, and their New York, which came from I think that’s a big aspect — being two standard schnauzers, Stanley and a little black bag, and then to entrepreneurial and having a pas- Lulu. Bright pink is her favorite color gain recognition for these [at- sion for what we do.” and she enjoys making a statement with tributes],” Lloyd said. She added that rtw was cru- a flash of the electric hue, like team- The Kate Spade New York cial to establish the whole ing a black-and-white print shift with woman, she noted, is “curi- brand language. shocking pink heels. It’s that sort of sen- ous, she is playful and she “I come from a background sibility that makes her the perfect per- is strong. I am defining the of rtw and it was really hard sonality for the brand. personal attitude traits, not in the beginning to work on Since joining Kate Spade New York the age. That’s one of the an ad campaign and borrow from Banana Republic, where she was successes of the brand — it other people’s clothes or vin- executive vice president of product de- captures the imagination of tage clothes.” sign and development, in October 2007, women of age 15 up to the- The brand, she noted, easily Lloyd has become a brand architect sky-is-the-limit.” lent itself to expansion. “It was who has, in tandem with chief execu- Lloyd’s own trajectory about color,” Lloyd said. “We tive officer Craig Leavitt, conducted a is ripe for storybooks. The learned that when we launched. successful overhaul and expansion of Brit grew up in Plymouth, We sold far more bright yellow the brand. As she put it, she considers England, by the sea, the dresses than we did the black her role akin to that of a conductor who departure point for the dress. The first print we did was a can “bring all the different tunes from Mayflower and the Pilgrims. giant black-and-white zebra print. all the orchestras together and make “I was destined for America We had amazing sales on things that sure that the symphony makes sense.” one day,” she chuckled. Pre-fall {Continued on page 10} Demandware is honored to be the digital commerce platform that powers katespade.com. Congratulations kate spade new york on your 20th anniversary!

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{Continued from page 8} were playful. We put bows on things. And yet there was always a sophisticated and timeless appeal to them.” As for her inspiration, it comes from “all over the place. It’s from travel, it’s It had a very strong DNA, and there from people, it’s from books. It’s just things that I love. I have always been a magpie and eclectic, and it’s pulling from was a huge opportunity to work everything and everywhere I go. [I don’t take] a vacation where I don’t bring back with that DNA and take it from this one idea.” Besides jewelry and rtw, Lloyd also beautiful niche jewel to something continued to build shoes with Schwartz & Benjamin, and home with Lenox. The brand also launched watches in-house, as bigger and extraordinary. well as developed a fragrance business — — DEBORAH LLOYD ﬁrst with Twirl, and, in time for the 20th anniversary, Live Colorfully, which will launch over the next two months. “It’s well-rounded and we’re trying to do each of these categories well,” she said. “Within each there are so many opportunities to grow.” While she wouldn’t disclose the single largest category, Lloyd pointed out that, “If we can’t get handbags right, we don’t have the permission to do anything else.” Regarding handbags, which is ·· how Kate Spade herself started, Lloyd admitted that it was the most challenging area to tackle. “Kate Spade had this huge hit with the original black tote bag that started the company in 1993 and was, like, the ﬁrst ‘It’ bag,” she said. “You either have to keep going with that and keep developing it, or you come up against a bit of a wall. It took a while. If I now look back, it was good we did a lot of the work on the other categories. It took off a little bit of the pressure to be able to come back in and work on the handbags and build a strategy there.” As for the future, Lloyd says the possi- bilities are limitless. Pre-fall “Already, in the 20th anniversary year, we’re launching a new brand called Saturday,” she said. “It comes from the same DNA but it’s a sister brand, targeted at a younger customer who is not quite ready for the Kate Spade brand. It’s chan- neling Saturday — the best day of the week — seven days a week. We have these ideas that can be explored as lifestyle brands unto themselves. “Within the Kate Spade New York brand, there is still so much we can do and we have only scratched the surface. Then there is the lifestyle piece. Who knows, one day there could be Kate Spade hotels. All those different things bring the Kate Spade experience to life in so many different ways beyond what we do today.” And perhaps, one day, she will even zero in on a new ‘It’ bag for the brand. “One of my biggest challenges is to rec- reate that ‘It’ bag,” she admitted. That said, Lloyd is also fully aware that such a hit can easily spawn endless coun- terfeits — a notion that plagued Spade herself when she was in charge. Lloyd seems to be taking the prospect with a dose of humor. Dress and bag, “We haven’t had something that has cap- spring 2011; tured the imagination of Canal Street,” she necklace, fall said with a smile. “I have told my team that 2011; shoes and once we do that, I will take them all out for bracelet, spring.

dinner. Then we’re shutting it down.” GEORGE CHINSEE ERICKSEN; PRODUCTS BY KYLE PHOTO BY

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KATE SPADE’S SALES TRAJECTORY in millions

$500 $400 $313 PHOTOS BY THOMAS IANNACCONE PHOTOS BY $462 $300 $141 $184 $200 $126 $91 $100

2007 2008 2009 2010 2011 2012

SOURCE: COMPANY REPORTS.

that we started that fateful summer in McComb said the brand has been July 2007 was the right damned thing to careful in how it grew and for now is do,” McComb said. “On the long list of “largely staying within our current things of which people were critical was footprint” to take advantage of the in- that I was going to put more money into teraction between the brand’s stores Kate Spade and sell Ellen Tracy.” and its Web presence. McComb said the intense pressure The brand ended the year with to not spend money to incubate Kate about 100 stores and plans to add an- Spade was overwhelmed by the poten- other 40 stores in North America and tial of the brand. 25 doors elsewhere this year. “I didn’t let the overall story of Liz “It’s not about the number of doors, Claiborne suck away the priority to invest it’s about the quality of the business,” in [Kate Spade],” McComb said. “I had a McComb said. “It’s about letting it be vision that summer and we’re in the early special and not be everywhere. We chapters of where that vision is going to could have gotten to a higher profit lay out. We’ve made mistakes along the margin and moved higher on the sales way. Everybody makes mistakes.” and the profit curve earlier by letting McComb said Kate Spade “had that out all of the string on that kite, but we twinkle in its eye” in 2007. didn’t want to.” “Accessories was a hot category,” the Not everyone has that same kind ceo said. “[Kate Spade] had potential in of restraint. footwear and handbags, it wasn’t posi- Investors, for one, have been push- tioned right — [it wasn’t] modern enough ing for the company to spin off Kate or young enough — but the bones of it Spade or somehow separate a portion were more solid than any of the busi- of the business so it can be valued in- nesses that year.…There are sunrise dependently. businesses and sunset businesses. We The stock market tends to give brands were a portfolio of sunset businesses; we a higher valuation when they’re on their knew Kate was a sunrise business.” own than when they’re in a portfolio. Kate Spade was positioned as a mono- And Michael Kors Holdings Ltd., with a William L. brand company along with its cohorts market capitalization of more than $11 McComb Lucky Brand, Juicy Couture and the billion, has awoken many on Wall Street since-disposed-of Mexx. But the ceo said to the potential of fashion brands. it was easier and simpler to reposition McComb has long said his plan Kate Spade for growth, given its size. was to create companies that could “It was easier for me to clear the stand alone. whiteboard and start all over,” McComb A Kate Spade-specific investment McComb’s Bold Move said. “I needed to refound the business. conference planned for next month and I hired [the brand’s president and chief some recent comments from McComb The Fifth & Pacific ceo bucked the odds by investing heavily in creative officer] Deborah [Lloyd], and have caught the attention of investors the brand, which at the time was one of a slew in its portfolio. together we hired Craig [Leavitt, ceo]. and analysts. Last month, the ceo said They report to each other, and together in a press release forecasting fourth- By Evan Clark they report to me.” quarter results that the company was Kate Spade lost money for two “being thoughtful regarding alterna- AT THE CENTER of Kate Spade’s put 16 of the firm’s brands on the auction full years as the company invested in tives to our current multibrand portfo- whirlwind of success is a lightning rod block — including Ellen Tracy, Sigrid the business. lio approach that unlock value.” named William L. McComb. Olsen and Dana Buchman — and reori- “It’s making so much money now Those words were clearly chosen A Johnson & Johnson alum armed ented the company around four “power because we did it all right,” McComb very carefully, and in the interview with a degree from the Chicago brands,” one of which was Kate Spade. said. “In the summer of 2008, our McComb declined to be more specific Graduate School of Business, McComb And soon there was not just change [sales] productivity at retail was low, on the future of Kate Spade. entered fashion at the top, becoming within, as the portfolio was scaled back $320 a square foot. It’s at $1,100 now.” “What I’m silent on in the press re- chief executive officer of Liz Claiborne and the Liz Claiborne brand struggled, For 2013, Kate Spade’s sales are ex- lease…what we do and when we do it is Inc., now known as Fifth & Pacific Cos. but also turmoil without, as recession pected to rise by a percentage in the low not something that I’m going to wring my Inc., in late 2006. took hold and then the disaster of the teens, topping $522 million. And adjusted hands about,” McComb said. “Job One is At the time, Kate Spade had just been financial crisis struck. earnings before interest, taxes, deprecia- to build value, Job Two is to study ways bought from Neiman Marcus, and would That Kate Spade has been able to tion and amortization are slated to rise by to unlock value.” be the most-recent addition to what had motor along and go from strength to at least $35 million to $130 million to $140 The company is also planning become a sprawling empire of more than strength was an obvious point of pride million. That would make Kate Spade the separate investor conferences on 30 brands. At $124 million, some thought for McComb during a recent interview. firm’s largest business by revenue. It is al- Lucky Brand and Juicy Couture for the company paid too dear a price for “Our strategy for resource allocation ready easily its most profitable. later this year. the brand, which wasn’t large enough to A spin-off of Kate Spade, while maybe move the needle at the multifaceted firm the dream of many investors, raises ques- with nearly $5 billion in revenues. tions for the larger company, including Fast-forward to today, and Kate what happens to the other businesses and Spade is seen as one of fashion’s most what happens to McComb himself. likely to continue to succeed and is “We aren’t going to do something mentioned frequently in the company of that creates value on the right hand other hot brands such as Michael Kors and destroys value on the left hand,” and Tory Burch. McComb said. “We aren’t a one-horse But back in 2006, the brand might town, we’ve got multiple sources of easily have been lost in the shuffle. value in our portfolio. McComb began to put his mark on the “The answer on what happens to company in 2007, and when he did make Kate Spade has plans to add me is, ‘Who cares?’ ” McComb said. his move that summer, it was as criti- about 65 stores this year. “Honestly, if I’m doing my job, then those cized as it was definitive. He essentially aren’t the things that matter.” CONGRATULATIONS, KATE SPADE NEW YORK, ON TWENTY FASHIONABLE YEARS.

We are proud to partner with you on your continued success.

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Kate and Andy Spade photographed in their Manhattan apartment last month. PHOTOS BY LEXIE MORELAND PHOTOS BY

Fifteen years after building their brand, Kate and Andy The First Couple Spade simply folded. By Jessica Iredale

THE DAY AFTER this year’s presi- Even if the youngest Obama sim- The Spades, who were not yet legal- because they weren’t sure. At one point dential inauguration turned out to be ply loves the color purple, the label ly the Spades — Kate Spade had a bet- he and Kate moved to Los Angeles for the perfect time to interview Kate and stitched inside an 11-year-old’s outfit ter ring to it than Kate Brosnahan, her six months when he accepted a job as Andy Spade on the 20th anniversary becomes a political statement when maiden name — did not have a formal creative director at Saatchi & Saatchi. of the company they founded in 1993. she’s a member of the first family on business plan, but they did see the pro- They thought about bailing on Kate For the ceremonial occasion of her Inauguration Day. That she chose verbial void in the bag market, which Spade altogether, but their partners, dad’s incumbency, Sasha Obama had Kate Spade — or that it was chosen for had yet to explode for the traditional Kate’s best friends Elyce Arons and appeared on the mall in a purple coat her — is testament to the company, its ready-to-wear designer houses. There Pamela Bell, pleaded — if they quit by Kate Spade, thus handing a reporter image and values, which remain an- was Coach, there were the Europeans now, everyone loses everything. an icebreaker on a silver platter — ex- chored in the Spades’ original point and there was a lot of leather and Plus, things were on the up- cept Kate Spade beat her to the punch. of view: American, wholesome and not hardware going on. Kate knew what swing. In 1995, Kate Spade received “So, I read that Sasha was wearing too expensive. she wanted: simple, straightforward the Council of Fashion Designers Kate Spade!” she said at the outset of the Before they were Kate Spade the totes and shoppers. Her original sam- of America’s Perry Ellis Award for interview. She cannot take credit for the brand, the Spades were college sweet- ples were done in linen and burlap Accessories. Within a year, sales actual design, as she, her husband, Andy, hearts from the Midwest, she from since the only fabric resource willing had topped $10 million. They were and their two partners cashed out of Kansas City and he from Arizona. They to sell to a no-name designer with no in Saks, Neiman’s, Barneys and the company that bears her name seven came to New York after graduation to track record and no minimums turned Bloomingdale’s. In 1997, they opened years ago to the tune of $59 million. pursue fashion and advertising. She out to be a potato sack company. their second store in New York’s SoHo It must be pretty weird to hear your worked as an accessories editor at Eventually the bags evolved into on Broome Street, after outgrow- own name in such a public yet disas- Mademoiselle and he was in advertis- the more durable nylon for which she ing their first one on Thompson, with sociated way. ing at TBWA/Chiat/Day. became famous. Spade had 10 black more planned for Los Angeles, San “Oddly not,” said Kate. “I get asked Neither grew up fantasizing about and 10 navy made up for her first trade Francisco, Chicago and Japan. that all the time. I always felt there was being fashion designers, but they show at the Jacob K. Javits Convention They also launched shoes, a leather me and there was the company. It was shared an entrepreneurial itch. Center in New York. They didn’t write collection, secured an eyewear license obviously very personal, but I didn’t “I thought we’d start our own ad a ton of orders, but they got the right and were dabbling in rtw. confuse a bill not getting paid by Kate agency,” said Andy. “We kind of wanted attention, from Judy Collinson at Also, in what is perhaps the biggest Spade as me not paying it.” to do our own thing.” One night over Barneys, and Candy Pratts Price of measuring stick of a brand’s success, Her excitement about the Obama dinner at their favorite Mexican res- Vogue, who featured Kate Spade bags they were being knocked off left and endorsement seemed entirely genuine, taurant on the Upper West Side, they in Vogue’s Last Look. right. The company had begun aggres- without a trace of subtext. were talking business ideas and “Andy For the first few years the operation sively pursuing operations that infringed “Oh, I think I want to write Deborah said, ‘Why don’t you do handbags? You was “scrappy.” Kate as designer and on its designs, settling cases against such [Lloyd, Kate Spade’s president and love handbags, accessories,’ ” recalled Andy as creative director worked out of major retailers as Gap, Dayton/Hudson chief creative officer] a note,” she said, Kate. “And I said, ‘It’s not like you can their apartment, took no salaries, and and Kmart. The men’s accessories line, turning to her husband. “Because it’s just start a handbag company.’ And he’s Andy always had one foot out the door, Jack Spade, came in 1996. kind of a big deal.” like, ‘Well, why not?’ ” mostly for financial reasons but also {Continued on page 16}

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{Continued from page 14} and taking it to a patternmaker I found “We never thought about starting a in the back of Women’s Wear Daily.” Kate Spade company. We just said, ‘Let’s make some At first, she had a bit of a complex. in 2000. bags and see what happens.’ And people Spade recalled how Linda Wells intro- ask us now, ‘How do I start a company?’ duced her for her CFDA award, using the It’s daunting,” said Andy. “You don’t word “sensible” to describe the Spade start a company; a company is what you aesthetic. “I remember at first going, ‘It’s become if you are successful, right?” sensible? So are running shoes.’ Now I A big part of what the Spades look at [the original bags] and it’s true and think made it resonate was their I like that.” outsider, Midwestern sensibility. In 1999, the Neiman Marcus Group “Straightforward,” “optimistic,” “ear- acquired 56 percent of the company nest,” “friendly” and “not pretentious” for $33.6 million in cash. “That was are words they used to describe their kind of a sigh of relief,” said Kate. vision. Kate is the first to say she was “We could get a little bit lifted off our never a trained designer. shoulders financially.” “I wasn’t always sketching on top of They continued on, market upon mar- some mountain overlooking the glisten- ket, season after season, building the Bell, sold the remaining 44 percent of the creative projects that make up his busi- ing sea in Belize,” she said. “The real brand until, in 2007, they walked away. company to Neiman Marcus, which in ness, which he describes as a “gallery and truth of it is that I was crudely drawing Kate and Andy, along with Arons and turn sold the whole thing to Liz Claiborne studio,” while he was still at Kate Spade. Inc. (now Fifth & Pacific Cos. Inc.). Partners & Spade’s client list includes J. There are no regrets. Judging from Crew, Warby Parker, Roxy and Quiksilver. their Park Avenue apartment, decorat- Andy has worked on three movies Clutch, circa 2003. ed in an eclectically stylish mix of the in the past five years and has put out modern, classic and earthy, their front several books. door sweetly covered in artwork by their “I think we both loved inventing things eight-year-old daughter, Bea, things are and creating things,” said Andy. “We cre- pretty rosy in the Kate Spade afterlife. ated [Kate Spade], and I felt like 15 years Kate is a full-time mom, one of her was probably five years longer than we primary reasons for letting go of her thought we would actually go. We’re re- business. “Having waited to have a baby ally lucky that it actually worked.…I felt, as long as I did, which was 42, I wanted like, creatively it was complete.” to be there,” she said. “I felt like it was a The couple still pays attention to the luxury I couldn’t pass up.” company, but with a healthy distance. Andy, who had grown restless at the “It’s like watching a stock,” said Andy. fashion company, walked out of Kate “Exactly,” said Kate. “I think they’ve Spade and launched his boutique cre- done a great job, shepherding the brand. ative agency Partners & Spade — “what, That was something we kind of jokingly the day after?” All kidding aside, he had said as we left, ‘Don’t make us afraid of already begun to work on some of the pet our own name!’ And we’re not.”

Spade is readying for its next But the product is at the boutique in Atlanta in March. heart of the endeavor, and The brand is also sold in 200 Jack Spade has managed to Hit the Road, Jack specialty boutiques and de- come into its own, offering partment stores, including outerwear, apparel and Barneys, Bloomingdale’s accessories. The brand A big store expansion and additional categories and Nordstrom. recently added denim, are on tap for the Jack Spade men’s brand. Those numbers are and it sells footwear By Alexandra Steigrad expected to rise, as the through a third party. retailer sets its sights on Currently, 35 percent of Although management would not dis- domestic and international its sales comes from bags, close a precise volume breakdown, Fifth markets, notably China, said another 35 percent comes & Pacific’s ceo William L. McComb said vice president and brand di- from outerwear, and the re- on an earnings call last year that Jack rector Cuan Hanly. maining 30 percent is made Spade “can be a $100 million men’s busi- Driving that growth is de- up of small leather goods and ness with very high margins.” mand for Jack Spade’s classic- other categories. PHOTO BY JOHN AQUINO PHOTO BY According to Melissa Xides, Jack yet-hip clothing and colorfully Next, the brand is ventur- Spade’s vice president of global sales accented bags, which target the ing into watches, which will Melissa and retail, the company decided to in- “creative class,” said Hanly. To hit the market on March 7. A stainless Xides vest heavily in the brand last year, as elucidate whom that includes, he Timepieces will range from steel timepiece and Cuan it moves closer to attaining lifestyle pointed to professionals ranging $95 to $500 and include a vari- inspired by a Hanly. brand status. from artists and graphic design- ety of case shapes and materi- That investment has taken the form ers to architects and journalists. pilot’s watch. als. The lower-priced watches KATE SPADE’S little brother, Jack of store expansion. In a year, Jack Spade Prices range from $145 to for $95 incorporate Japanese Spade, is getting ready to bust out of grew from three units to 10 stores. With $600, with a sweet spot that hov- movements, round cases his sister’s shadow. two doors in New York and a store ers in the $250-to-$300 neighborhood. and color-blocked or patterned rubber Since last year, the 17-year-old apiece in Boston, Washington D.C., “We’re going for simplicity and straps. Nylon straps are also offered. men’s clothing and accessories brand Chicago, Los Angeles, Portland, London, function, that’s our design philosophy,” The higher-priced timepieces, has become a major focal point and po- Tokyo and New Canaan, Conn., Jack Hanly offered. “It’s classic, American which start at $295, employ sapphire tential growth driver for corporate par- men’s wear, but we bring color and crystal and Swiss movements. This col- ent Fifth & Pacific Cos. Inc. humor to it.” lection has a variety of case shapes, Founded in 1996, Jack Spade began With a tongue-in-cheek blog blend- from round and pillow to tank and selling men’s messenger bags made Jack Spade’s ing pop culture, art, music and films square. It also has a sporty pilot’s from waxed cotton and heavy canvas. two-toned that influence the brand, Jack Spade model that has four hands, allowing Durability and function were the tote. reaches out to its consumer base on a timekeeping of two time zones simul- focus for cofounders Andy and more personal level. The platform taneously. Straps are leather, stainless Kate Spade, who opened their seems to be working, as its sales are steel or gold-brushed stainless steel. first Jack Spade store at 56 Greene spread evenly between e-commerce, “There’s a lot of bling in the market- Street in New York’s SoHo in 1999. its wholesale channel and its retail place at the moment,” Hanly said, as Inspired by a pair of Jacks channel, Xides said. he flashed his own Jack Spade watch. — writer Jack Kerouac and Jack To further strengthen the digital “I just feel like that’s starting to get a Welch, General Electric’s chief ex- side of the business, Jack Spade is little tired.” ecutive officer — Jack Spade sold “re-platforming” the Web site by the Moving forward, Jack Spade aims to a quirky mix of stylish travel bags, end of April, Xides noted, explaining cycle in more categories as it rounds trenchcoats and general merchandise that the site will include a social feed out its collection. that blended vintage furnishings and component. This new element will add “We’re very collaborative here,” classic products such as Levi’s 501 more cohesion to the brand’s Twitter, Hanly said. “I firmly believe that no jeans and Timex military watches. Facebook and Instagram following. idea is a bad idea, and we try to engen- Under Fifth & Pacific, Jack Spade “It’s about engagement,” der that in our teams.” has begun to spread its wings and is Hanly added. “It’s not just about “There are some bad ideas,” Xides now poised for broader expansion. the product.” piped in, “and I’m not afraid to tell them.” congratulates

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Two decades ago, designer Kate Spade created a boxy satin bag called Sam that became an accessories sensation. It has since grown into a lifestyle brand, encompassing items from jewelry and jackets to teapots and tech covers. Here’s a look at some of the best goods over the years. — ROXANNE ROBINSON

ON SARAH: Headband and sweater, holiday 2011; skirt, holiday 2012; coat, circa 1998; Magazine clutch, spring 2012; Newspaper clutch, spring 2011; Dipped Coal Jack Spade bag on ﬂoor.

PHOTOS BY KYLE ERICKSEN; MODELS FROM LEFT: SARAH STEWART/W DIRECT, VIRGINIA SLAGHEKKE/TRUMP, TRISTAN/FUSION; HAIR: ANDREW FITZSIMONS AT ARTISTS BY TIMOTHY PRIANO USING ORIBE HAIR CARE; MAKEUP: MARI SHTEN AT ARTISTS BY TIMOTHY PRIANO USING DIOR BEAUTY; SET STYLIST: LUKE ABBY FOR JED ROOT INC.; ASSISTANTS: MERCEDES PSL BASS, LAUREN MONTGOMERY, ALI GAVILLET, CASSAUNDRA DELVALLE; MEN’S STYLING: ALEX BADIA WWD MONDAY, FEBRUARY 4, 2013 19 WWD.COM

ON TRISTAN: Suit: fall; Nickson Oxford shirt, fall 2012; Mallick raw silk tie, fall 2012.

ON VIRGINIA: Earrings and clutch, holiday 2011; necklace, fall 2011; faux-fur jacket, fall 2010; dress, summer 2011; pumps, spring. Pink bag on ﬂoor: spring 2011. 20 WWD MONDAY, FEBRUARY 4, 2013

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WWD MILESTONES Bib necklace, fall 2010.

Ring, fall 2008.

Pearl necklace, holiday 2009.

Statement necklace, spring.

Watch, Kate Spade has fall steadily added 2012. Film-motif cuffs, pre-fall. to the family of accessories with eyewear, launched in Sunglasses, 2001, jewelry summer 2012. in 2008 and watches in 2012 — all of which stay true to the brand’s playful retro spirit.

Cube necklace, Aviator-style sunglasses, spring 2012. Watch, holiday 2012; fall sunglasses, 2012. spring 2012; blouse, spring.

Cocktail ring, holiday 2010. PHOTO BY KYLE ERICKSEN; STYLED BY ROXANNE ROBINSON ERICKSEN; STYLED BY KYLE PHOTO BY

Enamel necklace, spring 2011. KATE SPADE NEW YORK WE’RE CRAZY ABOUT YOU!

With a whimsical sense of chic, your exuberant approach to the everyday is as fun as it is inspiring. Happy 20th anniversary! 22 WWD MONDAY, FEBRUARY 4, 2013

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WWD MILESTONES Metallic ﬂat, Basket bag, Patent bag holiday 2004. spring 2008. spring 2009.

Wedge, spring.

Lobster bag, Polka-dot pump, spring 2009. fall 2012.

The Kate Spade signature — a black nylon boxy shape — has grown to include quirky animal themes, cheerful basket bags and exotic pythons. Shoes, which were introduced in 2000, continue the playful motifs with Python bag, bold prints and signature bows. spring 2006.

Owl evening bag, fall 2011.

Glitter sandal, fall 2010.

Bow ﬂat, holiday 2009.

Woven bag, spring 2008.

Basket bag, spring 2007; dress, spring; platform sandal, License plate clutch, pre-fall. resort 2012. PHOTO BY KYLE ERICKSEN; STYLED BY ROXANNE ROBINSON ERICKSEN; STYLED BY KYLE PHOTO BY sàﬁ lo group congratulates kate spade new york on 20 years of fabulous style 24 WWD MONDAY, FEBRUARY 4, 2013

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WWD MILESTONES Swedish M90 Camo bag, holiday 2012.

Woodgrain iPad slip, holiday 2012.

Barbour + Jack Spade’s Hopper jacket with sweatshirt and Nickson’s oxford shirt, fall 2012. Dolan classic chinos and Waxwear Messenger Bag, spring.

American preppy sensibility with a twist, brightly colored accessories and conversational furnishings deﬁne the young-at-heart spirit of Conway the Jack Spade man. — Alex Badia 38mm sport watch, spring. Donaldson belt by Billy Moore, spring.

Hot Dog scarf, fall 2012.

Jack Spade key ring, October 2011.

Waxwear travel kit, spring.

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Johanna Murphy The Digital Experience and Kyle Andrew Web sites, e-commerce, social media and mobile commerce are constantly reﬁned to adapt to and exceed consumer expectations. By Rachel Strugatz

KATE SPADE makes it look easy. mance of e-mail and creative and just That’s the place where we absolutely But behind the whimsical brand’s what things work.” create original content for the commu- digital success is a highly choreo- An example of when science needs nity, but also the place where we talk graphed operation. From social media to win: e-mail subject lines. about our product and sales events,” across platforms like Facebook, Twitter, Murphy explained that subject lines Andrew said. Pinterest and Instagram to a digital must be creative and compelling, and a Murphy noted that Facebook also ﬂagship that contains elaborate con- lot of time is spent analyzing what cre- functions as a customer service chan- tent, paired with a comprehensive e- ative works best. As for how creative nel and an outlet for direct feedback. commerce experience, Kate Spade has ﬁts into e-mail marketing, her team Customer service representatives invested a lot of time in maximizing the now knows what resonates best with check the page regularly to make sure brand experience for consumers. the audience, whether it’s a graphic consumer issues are being addressed All of the company’s Web sites — image or a photograph of a product. — whether it’s a question about a Kate Spade New York, Jack Spade and Kyle Andrew, senior vice president product or an order. Kate Spade Saturday — will see a com- of marketing, notes that although she’s Twitter is the second-largest so- plete overhaul come spring, according more on the art side of things, while cial platform for the company in to Johanna Murphy, vice president of Murphy is more on the science behind terms of actual size. Andrew said e-commerce. Murphy oversees all the everything, the two teams must work to- this is where the brand shares Web sites, direct consumer marketing gether closely to achieve digital success. a behind-the-scenes view of the channels like e-mail and search, mo- Andrew said that although Kate KSNY girl’s lifestyle. Instagram and bile and “anything you can track an Spade, one of the earlier fashion Tumblr are also an integral part of ROI on,” she said. The upcoming rede- brands to become active in the digi- Kate Spade’s digital presence, as are signs were a collaborative effort with tal space, joined Facebook in 2008, it YouTube and Pinterest.

the creative side. wasn’t until a bit later that the plat- In 2012, Kate Spade nabbed the JOHN AQUINO PHOTO BY She cites Amazon.com and form really became an important third-place ranking in New York Nordstrom as entities that have raised channel for the company. Five years University think tank Luxury Lab’s, or sarily about transactions, it’s trying to the bar for the brand online, especially later, Andrew counts Facebook as the L2’s, fourth annual Digital IQ Index, bring our world into their device in a in terms of what customers expect. This brand’s biggest channel, with close to ranking fashion brands according to way that makes sense,” Murphy said. is why, in addition to how the site looks, 700,000 fans. their online competence. Kate Spade She stressed that the goal is for mo- careful attention is paid to fulﬁlment at “This is our most commercial place. ranked second in 2011, but 2012’s ac- bile to mirror the in-store experience. katespade.com. Murphy tual digital IQ was higher. Features such as added product ratings Kate Spade’s Facebook page. has witnessed an up- “We inherited a brand that and reviews are available so shoppers tick in an increasingly had a voice from Kate and Andy can look up such information while digital customer with [Spade], so it’s very easy, organic they are in the store. higher expectations, and natural to be on social media But Murphy and Andrew agree that and to cater to this indi- — and that’s why I think we were the biggest digital initiative will be the vidual, e-commerce sites there before others. Our brand arrival of Kate Spade Saturday, the will also see a relaunch spoke. Most fashion brands don’t company’s new multicategory brand. It later this year, as well as speak,” Andrew said, attributing will launch in Japan this month and in an enhanced inventory success in this area largely to the the U.S. via Saturday.com this spring. management system. fact that the brand didn’t have to Aimed at a younger consumer than “We wanted to better make up a persona. the main Kate Spade line, a physical understand the usabil- Mobile continues to remain a Saturday store will come later. ity of the site. It really priority — and mobile and tab- Features like live chat will be imple- is an art and a science. let behavior are tracked sepa- mented to make customer service eas- Both Web site and e- rately, according to Murphy. She ily accessible. mails are a great ex- said the company has a good “It is a pure play to begin with — ample of this,” Murphy idea of how customers use the [so] we need rich and robust product said, adding that some- devices differently — but driv- photography and we’ve invested heav- times it comes down to ing sales is not really the pri- ily in that,” Murphy said. “The team words versus statistics. mary focus with mobile. has done a good job integrating social “We know what will “If you think about the way content around the product, and then make people react, and people use devices, it changes there are a lot of ways for customers to we spend a lot of time the business of retail. Our strat- reach out to us and get help about size evaluating the perfor- egy is about that. It’s not neces- or ﬁt or any product details.”

The homepage, katespade.com. The brand’s Pinterest page. Congratulations to Kate Spade on 20 years of style, innovation and success.

:<7,93/63+05.:3;+ MANUFACTURING QUALITY ACCESSORIES SINCE 1997 28 WWD MONDAY, FEBRUARY 4, 2013

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of marketing at Lenox. “The reason and its unique needs, that has allowed it works so well is it’s a nice comple- the eyewear collections to flourish,” mentary brand to what we stand for. said Vedovotto. “Most of our customers We stand for traditional brands, and don’t shop the collection for basics, they Kate has a design sense that goes after look to the brand for something special. Color My World a traditional design aesthetic, but with As such, we always want to offer them a twist that makes it younger and more something interesting and unique, be it Brand-building, one category at a time. By Lisa Lockwood approachable.” exclusive acetate colors or playful pat- “Kate Spade by Lenox is the num- terns. This is also one of the few wom- ber-one designer license in the entire en’s fashion sunglass brands that offers WITH ITS QUIRKY, colorful and whim- sneakers, moccasins and ballet slip- industry,” said Scala. He said the line polarized lenses and products dedicat- sical products, Kate Spade has suc- pers — is growing nicely, and the is broad and includes every table- ed to smaller face shapes.” cessfully extended its brand through company will also be making footwear top category, from brightly colored Vedovotto described the customer as key licensing partners, such as Safilo for Kate Spade Saturday — a younger, mugs, vases and flatware to silver a woman from 25 to 55: “She is witty, cu- for eyewear, Schwartz & Benjamin for more casual offering. frames, glass bottle stoppers, china, rious, playful and strong and not afraid footwear and Lenox for tabletop. “Deborah [Lloyd, president and giftware, Christmas ornaments and to stand out in a crowd. The collec- The full array of licensed merchan- chief creative director of Kate Spade] key gift items. The merchandise is tion is vibrant and quirky, so it attracts dise, which ranges from stationery and is very passionate about the footwear sold at Macy’s, Bloomingdale’s and women who have their own unique comforters to footwear and sunglasses, business,” said Schwartz. Lloyd has Nordstrom, among others. sense of style.” takes its design cues from Kate Spade a shoe designer who works for Kate According to Scala, the Kate Spade He said Lloyd and her team have New York. Many have become leaders Spade and collaborates with by Lenox brand can capture that been great partners. in their respective categories, and each Schwartz & Benjamin, shar- younger woman who first became fa- “The stylistic influence makes significant contributions to ex- ing ideas and inspiration. miliar with the brand as a teen- and creative direction they panding the Kate Spade lifestyle. “We have a great collabora- ager and is now attracted to it provide to our product de- Schwartz & Benjamin, which for her engagement, wedding, velopment team each sea- has held the Kate Spade footwear son enables us to consis- license for the past 12 years, has Eyewear from Safilo. tently design and deliver seen the business blossom. Geared styles with strong con- to three generations of women — sumer appeal,” he said. the teenager, the mom and career What distinguishes woman, and the grandmother — Kate Spade’s eyewear Kate Spade footwear focuses on and sunglasses from color, novelty and whimsical ele- other designer lines ments, said Michele Prandi, vice is that they’re the “go- president of sales for Schwartz & to brand in the industry Benjamin, who oversees the Kate for petite face shapes,” and Spade footwear division. “She [the Tabletop by their playful use of customized customer] definitely doesn’t take Lenox. colors and interesting patterns herself too seriously.” on trend-right styles, he said. Defining elements of the collec- In addition, he said, the of- tion are the hardware, jewels and ferings are balanced with a bow studs. “We like ornamenta- wide range of wearable sil- tion. We like multicolor material. houettes, which makes the It relates to some of the ready-to- line very versatile. wear, which has more flavor and When asked whether color to it. We try to bring that into the Kate Spade Eyewear shoes,” said Barbara Schwartz, di- has the potential to pen- rector of product development at etrate the European and the footwear maker. Asian markets, he said, “We call it foot jewelry,” added “We launched the Prandi. optical and sun The shoes, which are priced in collections in the “accessible luxury” range, are An iPhone case from Brazil and Asia primarily manufactured in Italy. The Contour Design. in 2012 with pos- company recently began selling to itive results, and stores in Great Britain and expects to tion [with Deborah] we are enthusias- start shortly in Germany and France. It since she stepped tic about continuing also has a distribution partner in Asia, into Kate’s shoes. to expand the brand where it sells its footwear in Japan, She really embraced internationally in the Thailand, South Korea, Mainland it, probably even in a coming years.” China, the Philippines, Hong Kong bigger way than Kate Kate Spade Eyewear is and Indonesia. The executives said the did at the time. Maybe it’s situated in the top five per- way it usually works is that Kate Spade her background and wanting Shoes by Schwartz & Benjamin. forming collections within leads the way into a new country and to reach a broad audience and market- Safilo’s U.S. brand portfo- the footwear follows. place. She’s able to embrace a lot of the birth of her child, anniver- lio with excellent growth Schwartz noted that the casual different looks. She’s very open and sary or dinner parties. He and prospects, he said, side of the business — espadrilles, there’s great communication.” explained the Kate Spade adding that the brand has Kate Spade New York executives design team is very open performed well in all its come to the Schwartz & Benjamin to listening to Lenox about distribution channels. showroom four times a year to stage certain design nuances As for other catego- Kate Spade’s the collection for buyers with addi- (for example, don’t use ries the brand would tional Kate Spade products, adding color in the middle of a consider adding, Craig Licensing Lineup ambience and music to the showroom, dinner plate — people Leavitt, ceo of Kate said Schwartz, so people “walk into the prefer their food on a Spade, said, “We’ve got Schwartz & Benjamin Footwear world of Kate Spade.” white background) and a million ideas. There’s The company also makes footwear they have “good chemis- nothing in the immediate Safilo Eyewear for Diane von Furstenberg, Derek try together.” future. We’re focusing on Lam and 10 Crosby by Derek Lam, and Eyewear is another what we’re doing now.” Lenox Tabletop has a manufacturing agreement with category that’s become Still, some categories Rebecca Minkoff. “Our Kate Spade a significant business for that are ripe to explore CHF Industries Bed and bath business is our biggest brand today,” Kate Spade. are lingerie, loungewear said Daniel Schwartz, chief executive Roberto Vedovotto, and children’s apparel Mallory & Church Legwear officer of Schwartz & Benjamin. “It’s ceo of Safilo Group, said — especially after Sasha growing very nicely.” the company has been Obama wore a Kate Spade Kate Spade footwear is sold very successful in terms coat and dress during the Contour Design Tech accessories in stores such as Nordstrom, of sales growth and mar- inauguration last month. Bloomingdale’s, Saks Fifth Avenue and ket share with Kate Spade “We have customers ask- Lifeguard Press Stationery and gift Neiman Marcus, as well as on Amazon. New York optical and sun- ing about those things,” said com, Zappos.com and Piperlime.com. wear collections.“Safilo has Leavitt. “We’ve done collab- Elizabeth Arden Fragrance Expanding beyond products to wear, been working in collabo- orations on swimwear, but Kate Spade has an extensive array of ration with the brand for that’s an opportunity for us Buzz In-flight amenity kits home goods. Lenox has been a licensee more than a decade, and it is to do a complete line. These for tabletop for more than 10 years. their deep passion of design, are all things we’re thinking Paperless Post Online stationery “Kate Spade is a wonderful brand,” combined with a respect and about for the future to help us said Lou Scala, senior vice president understanding of our industry round out a lifestyle.”

Congratulations on 20 years of success. Cheers to 20 more.

®2013 Elizabeth Arden, Inc. happy 20th anniversary kate spade new york

CongratulationsCONGRATULATIONS on the 20th Anniversary of on the 20th Anniversary of

GLOBAL SOURCING PARTNER FOR YOUR BUSINESS years Li & Fung Limited is the world’s leading consumer goods supply chain management company for retailersGLOBAL and SOURCING brands worldwide. PARTNER FOR YOUR BUSINESS Li & Fung Limited is the world’s leading consumer goods supply chain management company for retailers and brands worldwide. www.lifung.com

www.lifung.com LIVE COLORFULLY. BE HAPPY. PLAYING BE BRIGHT. DRESS UP NEVER BE YOU. BEGINS AT 5 AND JUDGE A NEVER TRULY BOOK BY ITS ENDS. MOVIE.

CALL YOUR MOTHER.

EAT CAKE FOR BREAKFAST.

FOR 20 YEARS OF LIVING COLORFULLY, WE THANK YOU KATE SPADE. (Not to mention all the good advice you gave along the way).

vonmaur.com WE'RE LOOKING FORWARD TO OUR PARTNERSHIP AND YOUR NEXT 20 YEARS OF FASHION AND FUN.

Happy birthday, kate spade new york! We’re proud to partner with you and can't wait to see what you come up with next.

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