PHOTO BY THOMAS IANNACCONE; STYLED BY DANILO MATZ New York ▲ RETAIL: page 4. second Burch opens store, Tory Tory her Flexing ItsMuscle:P&GSees home ofTheNewYork Times,P&G’s media industry. coal forMadisonAvenue andtheentire $8.7 billioninfiscal2008—hasa lump of advertiser in Procter &GambleCo.—thelargest By MollyPrior

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10 2 WWD, FRIDAY, DECEMBER 12, 2008 WWD.COM Milan Men’s Shows Revert to 4 Days By Emilie Marsh would be allowed to show on Wednesday. “If they want to extend their calendar we MILAN — And they say women can’t make up would be pleased for them, but they’ll have to WWDFRIDAY Beauty their minds. extend it at the end of Paris’ men’s fashion week Men’s fashion week here is to revert back to — not at the beginning,” Pirovano said. FASHION four days in January, after Fendi became the lat- Prada will now show on Sunday, Jan. 19, at 6 6 Pre-fall looks from Nicole Miller and St. John hit est high-profi le brand to cancel its catwalk and p.m., which a spokesman said was the company’s both ends of the spectrum with knits, glitz and France’s chamber of fashion allegedly reneged on traditional slot. chic, tailored looks. a calendar agreement with its Italian counterpart. The Chambre declined to comment, while A Fendi spokeswoman told WWD late Yves Saint Laurent did not return a call. GENERAL Thursday that the Italian luxury house would Milan isn’t the only city changing men’s show forgo its runway show, slated for Jan. 21, the last dates. ENK International has changed the dates of 1 Procter & Gamble Co., the world’s largest advertiser, day of the men’s shows. Instead, Sylvia Fendi The Collective and Blue men’s trade shows in New spending $8.7 billion in 2008, has a lump of coal will present the label’s men’s line by private York to Sunday, Jan. 18 to Tuesday, Jan. 20. The for Madison Avenue and the media. appointment in Rome during the last week of shows were previously slated to run Jan. 19 to 21. 4 The red-carpet fashion frenzy kicked off after January. Fendi joins Marni and Valentino on a Vendors and retailers agitated for the change, nominations for the Golden Globe Awards were growing list of labels to drop out this season as according to Elyse Kroll, chairman and chief cre- announced at the Beverly Hilton hotel. the economic crisis deepens. ative offi cer of ENK. “It was loud enough that we Meanwhile, tempers fl ared here this week needed to listen. We realized that we needed to be After leaving as Pucci’s creative director, Matthew ▲ 7 when Italy’s Camera della Moda learned that Yves open that Sunday when the preponderance of re- Williamson was hoping to downshift, but instead Saint Laurent would maintain its traditional off- tailers would be here shopping,” she explained. his business is going full throttle. calendar event Jan. 21 — with Camera boss Mario The Collective and Blue have historically Economic challenges continued to drag down Boselli even labeling the Chambre Syndicale opened on a Sunday, but ENK had pushed back 18 “dirty players,” according to news reports. the date this season due to the unusually late imports of apparel and textiles to the U.S., fueling Camera della Moda general manager Giulia start of the Pitti Uomo trade show in Florence, a trend that has dogged the industry all year. Pirovano softened that reproach Thursday, tell- which is running Jan. 13 to 16. That gives ven- 19 China’s consumers are starting to feel skittish as ing WWD the Chambre Syndicale had gone “a dors showing there only 36 hours to pack up, fl y the country’s industrial production slows and the bit outside” an agreement made in October that to New York and set up. job market starts to shrink. Milan would extend fashion week by one day to ENK’s new dates mean its two shows will run fi ve (meaning buyers who traditionally skipped concurrently with Project New York, the other 22 Inditex, which runs the Zara chain, saw net off to Paris early Wednesday would have to post- major men’s show. However, the trade shows are A Matthew Williamson income in the third quarter advance 1 percent to pone their fl ights if they wanted to catch Prada directly confl icting this season with the men’s look for spring. $567.5 million, below most analysts’ estimates. as well as Fendi.) fall ’09 runway presentations in Milan. Classifi ed Advertisements...... 23 However, due to the number of cancellations, “It’s frustrating as a fashion director be- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS Pirovano said Milan would revert to four days — cause you want to see everything,” noted [email protected], USING THE INDIVIDUAL’S NAME. but just this once. She added the two organizing Kevin Harter, vice president of fashion di- bodies had reached a new agreement Thursday, rection for men’s, home and young world at WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. which, come the next round of men’s fashion Bloomingdale’s. “But we have a great team VOLUME 196, NO. 124. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with shows, results in a fi ve-day fashion week in here, and we divide and conquer.” one additional issue in January, October and December, two additional issues in March, April, May, June, August and Milan (Saturday to Wednesday) with the proviso November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division — With contributions from David Lipke, New York; of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services that no Paris fashion show or off-calendar event and Alessandra Turra, Milan provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. 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 Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA Goody’s Financial Woes Mounting 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all was no bailout or white knight for the retailer, editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. By Vicki M. Young For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online and its exit strategy was to liquidate and shutter at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. DEPARTMENT STORE RETAILER GOODY’S LLC all 173 stores. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services might be headed back to the courthouse for a While there’s a chance Goody’s could get a cash that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT second tour of bankruptcy less than two months infusion, credit sources were not optimistic. RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, after its exit, but this time sources said it might If Goody’s needs to fi le again, the fi rm’s in- UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR not even try to restructure. ability to corral additional fi nancing may lead ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY Goody’s, which fi led for bankruptcy court pro- it to the same liquidation fate as the one suf- WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE tection in June as Goody’s Family Clothing Inc., fered by Steve & Barry’s, credit sources said ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. has run out of cash, credit and restructuring re- sources, sources said Thursday. The Knoxville, Tenn.-based chain emerged from bankruptcy on DAILY Oct. 20, having closed on a $175 million revolv- This media environment ing exit credit facility provided by GE Corporate “ Lending and Bank of America. It also secured QUOTE is a big ‘O’ opportunity for $10 million and $35 million exit term loans from GB Merchant Partners and PGDYS Lending, re- us, because we’re the biggest advertiser spectively. PGDYS Lending, which owns Goody’s, is managed by private equity firm Prentice in a lot of these countries and we can Capital Management Inc. Sources said Goody’s, which stopped paying just walk in and tear up the contract. its bills and invoices last week, is trying to line ” up a cash infusion. They also said some vendors — A.G. Lafl ey, chairman and chief executive offi cer have demanded cash up front before they would of Procter & Gamble Co. Page one. ship goods to the retailer, a practice that some re- quired even during Goody’s tour of bankruptcy. The problem this time around is that the con- CORRECTION sumer has pulled back even further on spend- on Thursday. They pointed to another Prentice Thomas A. Reed worked with Michelle Obama at the Chicago law ing, those sources said. One credit contact said holding, KB Toys, which fi led a Chapter 11 peti- fi rm of Sidley Austin. The name of the fi rm was incorrect in a story Goody’s had planned for a 20 percent same-store tion Thursday, the second in four years, and its on page 3, Thursday. Also, the photo of Obama, Vanessa Reed and sales gain. What materialized was just a 12 per- plans to completely shut down its 420 units. KB Megan Beyer was shot by Warren Mattox. cent same-store sales increase. Toys exited bankruptcy in 2005, following its sale Executives at Goody’s could not be reached to Prentice Capital Management. Nicole for comment Thursday. Another Prentice Capital property soured Miller TODAY ON When Goody’s exited Chapter 11, its store earlier this year. Whitehall Jewelers, of which pre-fall count was 287 sites in 20 states with annual rev- Prentice owned at least a 5 percent stake, 2009. enues of more than $800 million and approxi- along with Holtzman Opportunity Fund and mately 9,800 employees. It became a privately Millennium Partners, fi led for Chapter 11 in held company on Jan. 27, 2006, after it was ac- June and is expected to complete the liquida- WWD quired by GMM Capital and Prentice Capital. tion of all stores by yearend. Should Goody’s hear the distress call and fi le Founded in 1953, Goody’s, in a recent compa- .COM again, it wouldn’t be the fi rst retailer to head ny fact sheet, said its customers are value-con- back to bankruptcy court soon after an initial fi l- scious consumers with an average household in- • More on pre-fall from St. John, ing in the same year. come of $55,000. Like many retailers combating Last month, liquidation sales began at Steve soft sales this holiday, the company recently has Nicole Miller and Naeem Khan & Barry’s, which on Nov. 19 fi led its second vol- promoted heavily. Its Web site is currently offer- • Additional photos of Tory Burch’s new store untary bankruptcy less than fi ve months after ing a 25 percent off coupon, another offering an and from the Bloomingdale’s Dubai event its initial Chapter 11 petition. The chain was extra 15 percent off for customers 55 and over, a • Featured images bought out of bankruptcy in September for $168 30-day layaway plan and 90 days of no payment million by Bay Harbour Management and York and no interest for customers spending $100 or • Global breaking news

Capital Management. In the second tour, there more on their Goody’s credit cards. ERICKSEN KYLE PHOTO BY • Daily stock prices

4 WWD, FRIDAY, DECEMBER 12, 2008 WWD.COM

FILM Golden Globe Contenders Retail Hit by Athens Riots By Marcy Medina Best Performance by an Actress in a Motion Picture, Drama By Elis Kiss BEVERLY HILLS — The red-carpet fashion frenzy kicked off Anne Hathaway, “Rachel Getting Married” Thursday after nominations for the 66th annual Golden Angelina Jolie, “Changeling” ATHENS — It should have been party time on downtown Globe Awards were announced at the Beverly Hilton hotel. Meryl Streep, “Doubt” Voukourestiou Street on Wednesday, where Prada was sched- Hollywood and the fashion industry are hopeful a po- Kristin Scott Thomas, “I’ve Loved You So Long” uled to inaugurate a six-floor flagship and boost a local morale tential Screen Actors Guild strike will not spoil the im- Kate Winslet, “Revolutionary Road” dragged low by the international financial downturn. portant marketing and moneymaking season. Instead of cocktails, however, the day marked the fourth day The Golden Globe dinner and awards ceremony on Best Performance by an Actress of fi erce rioting — and in many cases, looting — which followed Jan. 11 is not in jeopardy, but the Oscars could be threat- in a Motion Picture, Comedy or Musical the death of 15-year-old Alexis Grigoropoulos by police fi re in the ened. The Screen Actors Guild will send out strike autho- Rebecca Hall, “Vicky Cristina Barcelona” area of Exarcheia on Dec. 6. rization ballots on Jan. 23, a day after Academy Award Sally Hawkins, “Happy-Go-Lucky” As downtown Athens was in fl ames, some retailers had man- nominations are made public. The Oscars, set for Feb. 22, Frances McDormand, “Burn After Reading” aged to act swiftly. Ahead of the rioting, the Attica department would be in peril if 75 percent of the union members vote Meryl Streep, “Mama Mia” store took the necessary measures and saw just a few windows for a walkout when ballots are counted Jan. 23. Emma Thompson, “Last Chance Harvey” broken. Metal shutters also prevented damage at Dior, Louis The Golden Globes, considered a bellwether for the Vuitton and Hermès. Oscars, is to be broadcast live on NBC at 8 p.m. Eastern Best Performance by an Actress However, others were less fortunate: Tod’s and Ralph Lauren time on Jan. 11. in a Supporting Role in a Motion Picture had broken windows and were looted. Other stores targeted and Amy Adams, “Doubt” damaged included Marina Rinaldi, Nine West, Geox and Zara. Penélope Cruz, “Vicky Cristina Barcelona” H&M was also hit. “Two of our stores and our support offi ce Angelina Penélope Viola Davis, “Doubt” in Athens have been damaged. Luckily no one has been injured,” Jolie Cruz Marisa Tomei, “The Wrestler” said an H&M spokeswoman. “The stores are closed and we don’t

ARDELLA Kate Winslet, “The Reader” know the amount of the damage since we don’t have access to the area. We have set up a crisis team and we have been in contact TELEVISION with all our 70 employees in Greece. All our other seven stores in Greece are open as usual and we are monitoring the develop- Best Performance by an Actress ment closely.” in a Television Series, Drama In the highly commercial area of Kolonaki, broken glass was Sally Field, “Brothers and Sisters” to be found all along Skoufa Street, where stores like luxury mul- Mariska Hargitay, “Law and Order: Special tibrand Luisa — home to names such as Alexander McQueen and Victims Unit” Missoni — had smashed windows, though some, like new arrival January Jones, “Mad Men” Manolo Blahnik, were spared. Anna Paquin, “True Blood” Last weekend Oscar de la Renta closed its freestanding store Kyra Sedgwick, “The Closer” in Kifi ssia, an area a few miles outside of central Athens, but it has since reopened. Merchandise was removed from the two- Best Performance by an Actress story boutique’s fi rst fl oor and display windows were covered, in a Television Series, Comedy or Musical according to Alex Bolen, chief executive offi cer. “We’ve had no Christina Applegate, “Samantha Who?” direct impact on our store other than traffi c,” he said. America Ferrera, “Ugly Betty” The company is assessing the situation on a day-by-day basis. Tina Fey, “30 Rock” Bolen said, “If things turn violent, we will shut the lights off, Debra Messing, “The Starter Wife” make sure the staff is safe and take the necessary precautions.” Mary-Louise Parker, “Weeds” Through Studio Image, its partner in Greece, Oscar de la Renta is also sells handbags and shoes at the multibrand Image Best Performance by an Actress in a Miniseries store in Athens’ center. “We were told that store had some win- or Motion Picture Made for Television dows broken and was looted but not badly in relation to other Judi Dench, “Cranford” stores where everything is totally gone,” said Bolen. Catherine Keener, “An American Crime” Initial reports from business and commerce associations Laura Linney, “John Adams” spoke of 1 billion euros, or $1.3 billion at current exchange, Shirley MacLaine, “Coco Chanel” in damage, a figure that included locations in Athens and Susan Sarandon, “Bernard and Doris” Thessaloniki, where heavy rioting had also taken place. By Thursday, the Athens Chamber of Commerce and Industry Best Performance by an Actress in a had registered some 435 businesses with major to minor dam- Supporting Role in a Series, Miniseries age, 37 of which have been destroyed. Sporadic rioting continued or Motion Picture Made for Television throughout Thursday around the city, with very few stores open Eileen Atkins, “Cranford” for business downtown. January ▼ Laura Dern, “Recount” Meanwhile, Greek Prime Minister Costas Karamanlis has Jones Melissa George, “In Treatment” pledged fi nancial support to those hit by rioting, including lump Rachel Griffi ths, “Brothers and Sisters” sum payments of 10,000 euros, or $13,000, to small businesses. Tina Fey Dianne Wiest, “In Treatment” — With contributions from Robert Murphy, Paris, For more, S DONATO STINSON; FEY BY CHARCHI E. RODRIGUEZ/GETTY IMAGES; JONES BY ALBERTO CHARLES ESHELMAN/FILMMAGIC; JOLIE BY CRUZ PHOTO BY and Rosemary Feitelberg, New York see WWD.com. Burch Expands Manhattan Footprint, Retools on Web By Julee Kaplan very luxurious, but also very downtown.” The 1,600-square-foot space houses the entire Tory NEW YORK — If Tory Burch lived in the Meatpacking Burch assortment, at a range of price points. A customer District, her new store is what her living room would can walk in and buy a $45 pair of fl ip-fl ops or a $990 bead- look like. ed cocktail dress. Along the back wall is a series of framed The store at 38-40 Little West 12th Street here, which mirrored boxes, each of which houses a pair of shoes. The opened for business on Thursday, is the designer’s second wall, Burch said, is meant to look like a wall of framed art location in Manhattan (the fi rst opened four years ago at in a home or gallery. Accessories — from business card 257 Elizabeth Street), and her 16th location nationwide. holders to bracelets and handbags — are also displayed on “It was very important for the space to look like us, but tables and display cases throughout the store. This, Burch evolved,” said Burch, pointing out details such as the bright said, is really important, as the accessories continue to sell green plush carpeting, plum chairs and white couches, and extremely well, even in a poor economy. The new toryburch.com will relaunch in about two weeks. a silver and brass painted antique desk that her architect, “We are defi nitely feeling it,” Burch said of running Daniel Romualdez, found online on FirstDibs.com. a business in a recession. “The goal now is to fi gure about the designer and the brand. There’s a list of “We loved the Seventies’ fanciness about it, but made out how we can navigate through it. Our focus is on the Burch’s favorite items within the collections, styling it much cooler in the space by adding in the stainless product and on the customer. It’s tough, but we are still advice and a look into her own life through a blog she steel walls and brass trims,” Romualdez said. “It feels planning to move ahead with our growth plans.” will contribute to regularly. Also, customers can easily Those plans, Burch said, include the opening of fi ve shop the site by either clicking on an item in a market- more freestanding stores next year, extending product ing shot, browsing through by collection or by category. categories — “I’m really hoping to do home,” she said “It’s such an interesting way to reach the customer — and the relaunch of toryburch.com to refl ect more of and give her a glimpse into our world,” she said. what the brand’s lifestyle has become. The fi rm has also hired former In Style editor Honor “We fi rst launched the Web site about two months Brodie, whose responsibility will be to make the site after we opened our fi rst store on Elizabeth Street,” feel more like editorial in a magazine, Burch said. In Burch explained. “I always knew it would become a big addition, Burch plans to have some special additions part of our business, but it was never really in our bud- over time, such as styling sessions with guest stylists and get to promote it and move it forward.” discussions with guest editors. Burch worked on the site with Create the Group, a The site will relaunch in about two weeks. technology fi rm that has built Web sites for such brands While there’s been speculation that Burch is seeking The latest Tory Burch as Juicy Couture, Fendi, Oscar de la Renta and Marc an investor to help her expand her $200 million busi- store is located in the Jacobs. With new marketing images from Trey Laird, ness, she remains mum about any plans to sell. She also Meatpacking District. who Burch also recently began working with, the site declined to give fi rst-year sales expectations for the new is fi lled with ways the customer can get to know more store and the Web site.

6 WWD, FRIDAY, DECEMBER 12, 2008 WWD.COM Cool Class Pre-fall hits both ends of the spectrum. Nicole Miller manipulates and tucks knits for day and, for a bit of glitz, she features a star motif in prints and embroideries. Meanwhile, St. John offers chic, tailored looks.

Nicole Miller

St. John

St. John

For more, Nicole Miller see WWD.com. PHOTOS BY KYLE ERICKSEN AND DONATO SARDELLA ERICKSEN AND DONATO KYLE PHOTOS BY WWD, FRIDAY, DECEMBER 12, 2008 7 WWD.COM

Williamson’s Way Forward By Samantha Conti mate in the U.S. and around the globe. Velosa said in tropical hues and studded with sequins and embel- sales at the London store are down on the previ- lishments. “I think Dries Van Noten, for example, gets LONDON — After leaving his post as Pucci’s creative ous year, in step with other shops on the street. the balance right,” he added. director earlier this year, Matthew Williamson was The delay of the Los Angeles store doesn’t Williamson said the accessories line, launched last hoping to downshift. Three years of shuttling be- mean there isn’t more retail expansion spring, is humming along, and he hopes it will account tween London, Milan and Florence had been ahead for Williamson. In January, the duo for about 25 percent of sales by 2011. challenging but stressful, and he was looking will open a 1,800-square-foot unit at the The designer currently sells bags and shoes, made forward to a more relaxed working life. Dubai Mall, followed by a 1,600-square- in-house in Italy; costume jewelry designed by the But that was never going to happen. foot store at 360 Degrees Kuwait mall in the Germany-based Xenia, and sunglasses produced under “It’s relentless,” said the lanky, soft-spoken spring. In early summer, the brand will open license by the London-based Linda Farrow. Up next are Williamson during an interview at his com- a shop-in-shop in Moscow at Tsum. soft accessories such as scarves and stoles. pany headquarters in a posh Mayfair town Williamson is building up his brand Although their investors hold minority stakes, Velosa house. Every scrap of time is taken, and his in other ways, too. He believes the H&M said they have been a big help in building the business. Christmas holiday in the sun has now become deal, announced last month, “will get my With Baugur, he said, it’s business as usual despite the four days in his native Manchester as he fi res label out to a much wider audience. It is investor’s recent credit problems. up for an even busier 2009. a fantasy project for me: H&M is great at Baugur’s debts of $2 billion are currently in the hands In addition to a men’s and women’s col- emulating the shopping experience of the of Icelandic banks. Although that debt was up for sale ear- lection for H&M due out in April, a growing designers they work with, and they are lier in the autumn — with British retail tycoon Sir Philip accessories line and his fi rst New York store great at matching the quality and crafts- Green, Texas Pacifi c Group and other private equity com- opening in February, Williamson is expand- manship of the signature line,” he said. panies reported to be interested — it appears increasingly ing his staff and retail network, and plans to Williamson added his collection for likely the banks will hang on to the debt and manage it for launch his fi rst signature men’s wear line in H&M will be on the shop fl oor for a lon- long-term value. January 2010. ger period than the retailer’s other designer col- “They’re great partners, they still attend the board Company sales this year grew 14 percent laboration lines, and will feature two additional meetings every month, and we’re comfortable with to 10 million pounds, or $14.7 million at current product drops: In April, the fashion element will the relationship. They have no intention to sell their exchange, from 8.8 million pounds, or $13 million. debut in 200 stores, followed by a spring-summer shares,” said Velosa. Matthew Williamson is majority owned by the design- collection and a men’s wear one in 1,600 stores. As for TSM, Velosa said the investors are “much more er and his longtime business partner, Joseph Velosa. It was H&M, he said, that pushed him to design involved” and have been giving the company operation- The fi nancially troubled Icelandic company Baugur men’s wear. “I’ve always wanted to do men’s, and al advice on staffi ng, cost control and overall strategy. Group holds a 26 percent stake in the business, and hopefully it will make sense after the H&M proj- Although Williamson can’t seem to carve out the free Marvin Traub’s TSM Capital has 22 percent. ect,” he said, adding he will be “designing for him- time he’s been dreaming about, he knows it’s a pivotal During New York Fashion Week in February, self ” when he creates the collections. moment for the business. Williamson will open a 2,600-square-foot store in the “In men’s wear, there is a fi ne line between bor- “We are not a family company anymore,” he said, Meatpacking District, not far from those of fellow ing and ‘costume,’ and I want to hit that sweet spot. adding the business will soon have more than 50 staff- Brits Stella McCartney and Alexander McQueen. It won’t be about minimalism, but it also won’t ers on both sides of the Atlantic. “We’re no longer a The new unit, formerly a Bodum store, boasts a be about this for men,” he said, waving his hand cottage industry, but an actual industry — and that’s further 700 square feet of offi ce and showroom space, around his showroom packed with sexy garments really exciting.” and will serve as Williamson’s U.S. headquarters. Williamson will expand his American staff from three to about nine. Matthew Here and top: The store itself will feature a curving central space Williamson. Renderings of with concrete floors, pillars and clothing hanging Inset: A Williamson’s from pink neon poles. “Hidden” rooms off the central look for New York store. space will have themed interiors such as “sexy disco” spring and “boudoir.” Echoing Williamson’s London store on 2009. Bruton Street in Mayfair, the New York unit will have a tropical garden in the back, with foliage spilling onto the concrete fl oor. “Eleven years after we started, we are fi nally going to be able to connect with our customer in New York, to show her our complete environment and how we think the collection should be seen,” said Williamson, whose bright colors and sequined and beaded styles created an immediate splash when he made his debut on the London scene in 1997. Asked about whether the time was right to open a fl agship in recession-hit New York, Velosa said: “This has been a long time coming, and a step we needed to make. We are on the journey, and we are going to see this through. The store is not just about New York, but about catalyzing the global wholesale market.” However, he added that plans to open an L.A. store are currently on hold because of the dismal economic cli- GEORGE CHINSEE PHOTO BY FASHION 8 WWD, FRIDAY, DECEMBER 12, 2008

The Beauty Report WWD.COM Deanna Kangas Named President and CEO of Stila Darphin Revs Up Skin Care DEANNA KANGAS HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DARPHIN HOPES TO STIMULATE THE SKIN CARE Stila Corp. market — not to mention its bottom line — this winter Kangas, who had joined the company in January as chief marketing offi cer, replaces Ken Ude, who with its newest launch. had been at the helm of Stila since July 2007. Stila is an affi liated portfolio company of Sun Capital Stimulskin Plus Divine Lifting Cream, due in February, Partners Inc., a private investment fi rm specializing in leveraged buyouts and investments. has what many consumers will see as a forbidding price tag: While Kangas acknowledges 2009 will be a challenging business environment for everyone, she said $295 for 1.7 oz. However, Beth DiNardo, general manager of she is confi dent about Stila’s business plan. Darphin North America, professes not to be worried. “We see South America, India, Russia and China as huge opportunities, and we are increasing our “We’re seeing a lot of loyalty to the line, even in tough Internet operations both in the U.S. and abroad,” said Kangas. “We are in 21 markets internationally, times,” she said, noting that the brand’s sales were up 18 and we will be working with them to grow distribution overseas in both existing and new markets. We percent in October at Bergdorf Goodman. Added Maggie also feel that our products position us well for the future.” The brand is in about 500 department and Jackson, marketing manager for Darphin: “People are specialty stores in the U.S., as well as on sephora.com, stilacosmetics.com and beauty.com. willing to invest in Darphin.” Kangas also plans to expand the brand’s presence with shopping chan- Another bold move that DiNardo believes strengthened nels. The brand has appeared on QVC and will begin a new partnership with Deanna consumer dedication to the European skin care brand, Home Shopping Network during the fi rst quarter of 2009, Kangas said. “This Kangas which is a division of the Estée Lauder Cos. Inc.: rather is a worldwide opportunity for the brand,” she said. than expand distribution, Darphin recently whittled it Stila, founded by makeup artist Jeanine Lobell, will mark its 15th birth- down. “We stepped away from 17 Neiman Marcus doors, day in 2009, and Kangas said she also plans to “honor Stila’s heritage” in and remain in 18, including Bergdorf Goodman,” she said. celebrating the anniversary. “We then ramped up our focus on spa and boutique doors, In addition to her Stila experience, Kangas has also been vice president and we’re now in about 40 spas and 75 beauty stores, in- of marketing and public relations for Gloss.com, and she has served in sales cluding JD’s Cosmetics Essentials and Bluemercury and and marketing roles for the Michael Jordan Cologne brand and Bath & Body the new Space NK installation at Bloomingdale’s. At fi rst, Works’ fragrance division. She also coowned people thought we were crazy to walk away from some of and managed Strategic Growth Consulting, Some of those doors, but we thought the best strategy for the brand a marketing consulting fi rm, and Swingtime Stila’s was to be a professional luxury brand.” The brand has Designs, a fashion and accessories manufac- spring aims of eventually being in about 150 spas, said DiNardo. turing company, and was general manager of offerings. Speaking of spas, the company produces a profession- Mattel’s Barbie Collector Division. T. Scott al-only line in addition to its retail line. To aid that chan- King, Managing Director, Sun Capital Partners nel, Darphin also cut costs of its professional line to spas said, “We are very pleased with the promotion using those products for treatments. “We lowered those of Deanna Kangas as president and ceo of Stila. prices by an average of 50 percent in July, which makes Since her appointment as CMO in January 2008, us a very cost-effective backroom item,” said Jackson. Deanna has demonstrated strong leadership Darphin is also available at darphin.com. skills and an ability to deliver consistent re- Stimulskin Plus’ formula includes soy protein, caf- sults through a comprehensive understanding feine, creatine, pseudopeptide and vitamins C and E to of Stila’s business model. We are confi dent that lift and fi rm skin; blackberry, grape and oughton extracts she will help develop many new and exciting and melanase, boswellia serrata and chamomile, said to products consistent with Stila’s great heritage.” enhance radiance — Julie Naughton and lighten skin, and hyaluronic Stimulskin Plus Divine Lifting European Group to Introduce New Seals Cream. LONDON — European label lovers can look forward to logos a go-go on beauty products in 2009. The European Cosmetics Standards Working Group, whose members include a plethora of mar- quee-name classifi cation groups, will introduce common standards for natural and organic beauty products on March 30, for example. COSMOS-Organic and COSMOS-Natural labels will begin appearing on cosmetics packaging, which satisfy criteria agreed to by the group, consisting of the U.K.’s Soil Association, France’s Cosmebio and Ecocert, Belgium’s Bioforum, Germany’s BDIH and Italy’s ICEA classifi cation bodies. The founding members’ labels will also appear on the products. The move could help bring some clarity to the growing “natural cosmetics” market, which has become somewhat of an umbrella term for products ranging from the stridently green to those with what some might call a very tenuous link to nature. Meanwhile, France’s health minister Roselyne Bachelot is considering introducing a label- ing system for cosmetics deemed dangerous for children and pregnant women. In November, she acid, trehalose and phytosphingosine to said the French Health Products Safety Agency (AFSSAPS) will be called upon to evaluate the offer deep moisture, said Jackson. toxicity of certain chemical substances and the potential risks they pose to reproduction. While executives declined to discuss “I would like to study, in partnership with industry [bodies], the possibility of putting a logo on sales projections, industry sources estimated products that are toxic to reproduction, indicating they are not recommended for pregnant women and that Stimulskin Plus would do upward of $1 mil- for young children,” Bachelot said during a conference in November. lion at retail in its fi rst year on counter. Controversial chemicals including parabens and phthalates have long been under the microscope The brand also will launch a new lip balm in January. because of links to reproductive problems. Dubbed Age Defying Lip Balm, it is intended to be a fusion Also in the chemicals fi eld, a list of substances preregistered under the Registration, Evaluation of salve and antiaging treatment, said DiNardo. It includes and Authorization Chemicals regulations (REACH) will be published Jan. 1. Preregistered companies plum oil, said to be high in unsaturated acids and vitamin will then begin sharing data in Substance Information Exchange Forums. Companies, including beauty E; kokum and mango butters, said to provide moisture as fi rms, that did not preregister chemicals by Dec. 1 as part of the European law cannot manufacture or well as repair the epidermis, and sunfl ower oil, which is import those substances until they submit a full registration dossier. high in vitamins E and F. It will retail for $45. — Brid Costello — J.N.

Sue Devitt’s latest items. Devitt’s ‘Complexion’ Gets Treatment Bent AUSTRALIAN MAKEUP ARTIST SUE DEVITT IS PUTTING oxygen to skin cells. The SPF 15 Hydrating Marine Minerals spa in the spotlight with the launch in February of a new skin Tinted Moisturizer, features shea butter and is designed to re- care and makeup range called Spa Complexion. duce infl ammation, fi rm and offer antioxidant benefi ts. “I wanted to merge treatment and color together,” Devitt The mineral-based color cosmetics in the line also boast said of the 10-item line, which features a few treatment items treatment benefi ts. The SPF 30 Loose Powder Compact, like the and several shades of pressed and loose powder. “The idea mask, features sea butter, sea fennel and orchid extracts to hy- was to create mineral products that continually hydrate drate, soothe and fi rm. It comes in three shades for $32 each. throughout the day,” she added. The four-shade range called Pressed Powder Face Pallette ($32 The collection ranges in price from $32 for the powders to $62 each) shares many of the ingredients found in the loose powder. for the Microquatic Lactic Renewal Facial Peel. The addition of Eric J. Horowitz, chief executive offi cer and partner of Sue the items could boost retail sales of the brand by $2 million in the Devitt Beauty, noted that while the brand is carried at about products’ fi rst year on the market, according to industry sources. 300 doors globally, including Ulta, Harvey Nichols, QVC and on- The peel, which comes in a 1-oz. pump, is designed to im- line, he considers Barneys New York the brand’s key retailer. prove the skin’s elasticity, exfoliate and reduce hyperpigmen- “This collection is opening up domestic distribution opportu- tation and the appearance of fi ne lines and wrinkles. It is also nities,” he said, adding, “there’s a core base of customers that are meant to hydrate, fi ght free radicals and repair the skin. Oxygen passionate about the brand. They have an endless appetite for Infusion Masque ($40 for 1 oz.), another antiaging item, is intend- new [products], and with a makeup artist, there’s credibility.” ed to smooth skin, reduce redness, neutralize sebum and supply — Matthew W. Evans THE RELATIONSHIPS, STRATEGIES AND SALES MARKETING MUSCLE TO BUILD YOUR BEAUTY BRAND. YOUR MOVE. 71=<Q][PW\SaaOZSaO\R[O`YSbW\URWaQW^ZW\SaW\b]]\SQ]VSaWdST]`QSb]STTSQbWdSZg PcWZR`SZObW]\aVW^aab`ObSUWSaO\R^`]U`O[abVOb[]dSg]c`P`O\RT`][bVSQ]c\bS`b] bVSQ]\ac[S`EVSbVS`g]c¸`SXcabS\bS`W\UbVS[O`YSb]`O\SabOPZWaVSRP`O\RQOZZ]c` ICON >`SaWRS\b2O\O9ZW\Sb]¿\R]cbV]e(  #&$ f!

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The Beauty Report WWD.COM Dolce & Gabbana P&G Flexes Muscle in Recession Readies Makeup Line Continued from page one told analysts, referring to the fi rm’s arsenal of 23 billion- company’s 2008 analyst meeting. dollar brands. MILAN — Dolce & P&G’s muscle-fl exing on the media front ties into the Reiterating P&G’s trade-up pricing strategy, particu- Gabbana is gear- fi rm’s heightened focus on increasing productivity and driv- larly in developing markets where the company said it ing up to launch its ing out costs at a faster clip. has yet to court higher income consumers, Lafl ey said, makeup line, which For instance, to free up investment dollars to grow its “The purchase outlay is modest. We’re not talking about is expected to hit consumer health care business, which includes brands trading up from a Chevrolet to a Mercedes. We are talk- shelves at the end like Vicks, Metamucil and Pepto Bismol, ing moving from two pennies per of January. Lafl ey said P&G has halted new pharma- use to four pennies, then from four Fragrance and ceutical development. pennies to seven cents a use.” cosmetics licensee The company also continues to tweak With consumption in many re- Procter & Gamble its portfolio to further maximize its core tail channels trending downward, Prestige Products col- capabilities and shift to higher margin Lafl ey reminded analysts that P&G laborated to create the businesses. Over the last two years, in has the tools needed to boost con- color cosmetics line, which sumer spending. took several years to produce. The designer “We’ve found if we run a pro- duo also sought help creating their products gram that is targeted specifi cally at from makeup artist matriarch Pat McGrath, This media lifting consumption, we can do it,” who oversees the models’ faces backstage at “ said Lafl ey. “We’re just scratching Dolce & Gabbana fashion shows. environment is a big ‘O’ the surface.” It is rumored that a Hollywood starlet will But in this environment, no be the face of the makeup line’s advertising opportunity for us.… company is immune to consumers’ campaign. steely sense of practicality. P&G — Stephanie Epiro Everything is getting reiterated its long-term organic renegotiated. growth range of 4 to 6 percent, but acknowledged its second-quarter ”— A.G. Lafl ey, organic sales will fall below that long-held rate. Erno Laszlo Ramps Up Procter & Gamble Co. Despite his upbeat demeanor, Lafl ey said the company will oper- Presence on Internet the beauty space, P&G acquired DDF, ate with greater discipline, more Fekkai and Nioxin, boosting its profi le scrutiny and intensifi ed expecta- VENERABLE SKIN CARE BRAND ERNO upmarket. As P&G has worked to fortify its position in tions on return on investment. Laszlo, which is named after the Hungarian the mass market and blaze a trail into prestige, the com- Lafl ey, 61, said, “The best companies grow market dermatologist whose heyday was in the pany’s beauty and grooming sales have rocketed to $28 share profi tably.” Sixties, is aiming for the Web in a big way. billion in 2008, up from $9 billion in 2003. Asked by an analyst about his retirement plans, Lafl ey The 81-year-old brand has launched a Despite the heavy, gray clouds hovering outside and said, “We have a great team and a great business. We’re new e-commerce site, ernolaszlo.com, which over the beleaguered economy, Lafl ey drove his com- going to stay together. We have a lot left to do.” He added, is designed to be modern and more naviga- ments with optimism. “We have a ton of opportunity in this industry. I think ble to attract a younger audience. “Brands matter most when every dollar counts,” he there is tremendous upside, and I want to be part of it.” “The old site was for hardcore users, but for new visitors coming on, it was diffi cult to navigate,” said Kim-Van Dang, a consultant for the New York-based brand. “We blew out Arden: Sitting Pretty With New Scent the old site and started over.” ELIZABETH ARDEN IS FEELING PRETTY. ment through every aspect of Pretty,” said Geri Archer, vice The beauty fi rm, which will launch a fragrance with president of global fragrance marketing for Elizabeth Arden. that name in February, sees the feminine concept as an “We wanted to convey an ageless, timeless feeling.” evolution of its beauty message, said Elizabeth Park, ex- The fl oral theme is carried into the advertising cam- ecutive vice president of global marketing and general paign, which was created by Mark Dixon, vice president manager of Elizabeth Arden U.S. and creative director for Elizabeth Arden. Husband-and- “To be a total beauty, your wife team Coliena Rentmeester skin care, color cosmetics and and Tom Dey shot the print and fragrance have to make sense TV campaigns. Rentmeester is together, and we feel this fra- a photographer, while Dey is a grance represents that for us,” fi lm director. said Park. “This scent also has “For the print portion of the an upbeat positioning, which is shoot, we wanted to capture an important in times like these.” image that defi nes ‘pretty’ in a The launch is notable for an- single image — from the model other reason: It will be the com- and mirror to the wardrobe, fur- pany’s fi rst simultaneous global niture, props and wallpaper,” A look at ernolaszlo.com. fragrance launch, hitting doors said Dixon. in 27 countries in February. Print ads will begin running in The key point of the site is to gauge Arden worked with March fashion, beauty and life- a user’s skin type (dry, normal, oily) or Givaudan’s Claude Dir to con- style publications; TV will begin concern (acne, redness, hydration) then coct the fl oral juice. Top notes running in January. “For the vi- generate a regimen specifically for that are of Italian mandarin orpur, sual image, we started with the consumer. A “My Ritual” link allows site orange blossom and peach nec- idea of using the wallpaper, en- members or registered guest shoppers to tar; the heart is of petalia, star larging the fl owers, adding more view an interactive grid on which to build jasmine, pink iris and white fl owers in the same palette for an that regimen — in a time frame billed at peony, and the drydown is of excessive, dramatic, warm envi- less than a minute. Visitors can also shop fluffy musk, jacaranda wood ronment,” said Rentmeester. by product type. and creamy amber. Dey added, “For the TV com- Because products range in price from $38 Pretty’s launch marks the mercial, we wanted to create to $105, a multiproduct regimen could poten- fi rst use of the petalia ingre- a visual personality and iden- tially run a few hundred dollars. dient in the juice’s heart. tity.…The challenge was to In addition to the new site, Erno Laszlo Developed by and proprietary achieve this with the elements is rolling out three products to about 120 to Givaudan, it is a new fl oral of our set, the mood created by stores, including select Saks Fifth Avenue, molecule, explained Park. the lighting, to watch the room Nordstrom, Bergdorf Goodman and Neiman “Petalia became the new transform and the fl owers come Marcus locations. fl oral icon that I built my fra- The Pretty ad. to life. And the technical chal- The two-item C-Peel Phase 1 and Phase 2 grance around because it is lenge of shooting an over-the- product ($75) includes a citrus scrub with fi ne easy to wear, with a fl oral character that imparts a unique shoulder shot against a mirror.” micro beads plus an activator designed to be signature impression,” said Dir. Arden plans an intensive sampling campaign, noted mixed with the scrub for exfoliation. The Pretty collection comprises eaux de parfum in Archer. More than 20 million scented impressions are There are also two new redness products, two sizes, 1.7 oz. for $49 and 3.3 oz. for $62; a 6.8-oz. body planned, which will be delivered through scented strips, dubbed Redness Fx. The lotion, $95 for 1 oz., lotion, $30, and a 3.4-oz. body powder, $37.50. scented pieces and vials on card in-store, said Archer. is for oily skin and targets rosacea, while an The scent will be launched in Elizabeth Arden’s While executives declined to discuss sales fi gures, in- emollient, $105 for 1 oz., is for drier skin. full U.S. distribution, which is about 2,500 department dustry sources estimated that Pretty would do $30 million All told, the new products and Web site store doors. to $35 million at retail globally in its fi rst year on counter. could drive sales of the brand to between $30 Pretty’s bottle was inspired by a bud vase, echoing the At least 50 percent of that fi gure is expected to be rung up million and $40 million in worldwide retail fl ower theme, and the outer carton is a graduated wash of in the U.S. Advertising and promotional spending in the sales volume by yearend, according to esti- pink. When the cartons are merchandised together in case- U.S. is likely to top $10 million, said industry sources. mates by industry sources. lines, they form a fl oral canvas. “Flowers are a cohesive ele- — Julie Naughton — Matthew W. Evans lll#eZggnZaa^h#Xdb$e]didWnGdc@ZYb^ i]ZcZl[gV\gVcXZ[dgldbZc 12 WWD, FRIDAY, DECEMBER 12, 2008

The Beauty Report WWD.COM Perfumania Gambles on TV Buy Perfumania, which holds 10 licenses, By Matthew W. Evans Perfumania is produces Bijan — its number-one brand — advertising on TV WITH THE PROLIFERATION AFTER Michael Jordan and Pierre Cardin fragranc- for the fi rst time. Sephora of specialty beauty stores like es, and uses a third-party manufacturer but Ulta, Pure Beauty and Blue Mercury, call designs fragrances and bottles in-house. Perfumania’s marketing campaign this sea- Through the Model Reorg distribu- son a test case to see the effectiveness of tion subsidiary it gained as a result of the such a retailer advertising on television. merger in the summer, which includes The fragrance marketer, which is com- the Quality King unit, it distributes scents ing off an August merger with fragrance to some 4,000 stores, including Filene’s distributor Model Reorg Inc., is launch- Basement, Burlington Coat Factory and ing a TV ad campaign this season in an at- Loehmann’s. Half of the business is done tempt to grab market share during what’s on consignment. thought will be a soft holiday selling pe- Some of its best-performing brands riod for fragrances. include Armani, Dolce & Gabbana, The Bellport, N.Y.-based retailer, which Lacoste, Davidoff and Hugo Boss registered $62 million in sales during its scents for men, while White Diamonds most recent quarter, is pouring more than is a leader on the women’s side. $1.3 million into a TV campaign meant to Discussing the current economic establish an image for the vertical retailer doldrums, Piergiorgi said he be- and drive traffi c to stores. The TV spots will lieves Perfumania is well positioned include store shots and shoppers, and are as a fragrance discounter. Some 95 designed to make an emotional connection between open by Christmas — are located in percent of its business is in fragrance. fragrances and consumers. urban areas, either in malls (220 stores), “We believe customers are trading The campaign is to consist of 30- and 60-second TV outlet centers or freestanding spaces. So down,” he said, “[and] at the end of the spots in the New York, Atlanta, Miami and Dallas mar- far, it has opened 57 stores this year. day, we should be OK. But we’ll be cautious kets. In total, there will be 7,000 TV spots broadcast in “Going forward, the focus for us is to have neigh- [until Jan. 1]. We believe we’re where we need to be nine markets, and it’s the fi rst time Perfumania, which borhood shops,” said chief operating officer Ray in this economy to satisfy consumers.” was formerly known as E Com Ventures Inc., has ad- Piergiorgi, who cited markets such as Boston, Chicago The public company plans to report pro forma re- vertised on TV. There will be radio spots, as well. and Detroit. The retailer has eight locations in three sults at the end of next month, which will include post- Most of the chain’s stores — it expects to have 357 of New York’s boroughs. merger revenues. Go Smile Seeks Exposure With Expansion Rimmel London Eyes U.S. Growth Curve WITH A NEW MANAGEMENT TEAM ON BOARD, GO SMILE IS REINVIG- By Molly Prior franchise, he added. orating the brand with a slew of new launches, along with partnerships to Its upcoming long-wearing lip gloss, raise brand awareness. RIMMEL LONDON IS SHOWING OFF Lasting Finish Kiss & Stay, is a dual-ended Retail veteran Leslie Faust came on board as Go Smile’s chief executive its curves. gloss with color on one side and a pearly offi cer in April, once JH Partners had acquired the six-year-old company In addition to introducing a curl-in- shine on the other. The 10-hour gloss, from its original founders, Dr. Jonathan Levine and Stacey Levine. Jonathan ducing mascara — along with a spate of $7.99, will be supported with print ads. Levine currently acts as a consultant to the company. new items in January — the London-born Goldberg said, “Overall, new products Faust is focused on growing the business’ existing domestic sales by ex- cosmetics brand is trumpeting its growth typically end up being 17 percent to 20 panding its product portfolio, in addition to reformulating and repackaging curve in the U.S. market. percent of the business. So we are hop- existing items. The company repackaged its lineup to make it more direc- In the latest 12-week period, the ing to see at least 10 percent growth, even tional and targeted at the beauty category and not just aimed at the oral seg- Rimmel brand surged 47 percent, boost- in this fl at market.” ment. She also has plans to expand the brand internationally and establish ing its dollar market share to more than Industry sources estimate Rimmel is new retail partners as there are growth opportunities. 3 percent. a $100 million brand in the U.S., and that “We’re already fi elding interest internationally, since I feel that the oral “We’re starting to become a signifi cant its retail sales are beginning to near its care trend is picking up — it’s been later than in the U.S., but it seems to be player in the U.S.,” said Rick Goldberg, sales in the U.K., where the brand has a catching on, and these types of products are in high demand,” said Faust, vice president of marketing for Rimmel. leading 21 percent dollar share in mass who has spent the majority of her career with various positions Over the last several years, Rimmel, outlets (excluding prestige brands sold in including, most recently, executive vice president which was introduced here in 2000 exclu- mass outlets). of merchandising at Bath & Body Works, and sively in Wal-Mart stores, has worked to To amplify Rimmel’s London heritage, vice president and general merchandis- build its foundation with new spins on face products and packaging will increasingly ing manager at Neiman Marcus. makeup and mascara, in particular. The feature a crown logo, a nod to British roy- “When I was first intro- focus now is steadily expanding its product alty. Boraczek said, “Rimmel is about the duced to Go Smile, I im- base and store count. On average, Rimmel London look and London style.” Goldberg mediately added it to our occupies three feet of display space in added, “That’s our distinctiveness in the assortment, since I recog- mass retailers, including Wal-Mart, Target, market. Rimmel gives consumers a reason nized it bridged together Walgreens, Ulta and CVS Pharmacy, which to believe that a city that creates fashion, the beauty aspects of a it entered in May. In the U.S., Rimmel music and is cutting edge is accessible.” smile with performance,” added 5,000 doors this year for a total of said Faust, recalling her re- 18,000. Next month, Rimmel plans to roll tailing days. “As a merchant, out to Duane Reade doors, as well. the brand had total incremental Its upcoming products include Stay Rimmel’s growth, since it didn’t compete with Matte Clarifying Matte Foundation, upcoming makeup or skin care but still fi t in A new Go Lasting Finish Kiss & Stay Gloss, Sexy products. with looking and feeling better while Smile item. Curves Mascara and new shades of improving your overall appearance.” Rimmel eyeliners and nail enamel. On the product front, Go Smile is intro- Stay Matte foundation, which in- ducing a new two-step Smile Whitening to whiten teeth and help maintain tends to leverage the success of this results. Designed to provide maximum whitening power with a proprietary year’s launch of Lasting Finish 16-HR ingredient blend, the advanced serum contains a higher level of whitening Foundation, has a collagen-enriched for- ingredient than existing formulations, and a new polymer that has better ad- mula with a gentle dose of salicylic acid, hesion with the tooth surface. designed to clear skin of all ages, and “We knew we could improve on our number-one formula and clarify our botanical extracts to soothe sensitive message, which is to whiten teeth and maintain the results with toothpaste skin. The 12-hour formula will sell for and touch-ups,” said Faust. “We built on the same ampoule technology, using $6.99, and upcoming TV and print ads a higher active hydrogen peroxide as the base of the serum but optimizing will feature British actress Lily Cole. the fl avor by making it more minty.” Sexy Curves Mascara, for $7.49, is The company also upgraded its FlashLites Smile Touch Ups packaging. said to give lashes 70 percent more curl Retailing for $89 for the two-step kit and $10 for a seven-pack for FlashLites, and its fl exible Triple Plump Brush is the items will be available starting in January at Sephora, Ulta, saks.com, designed to coat diffi cult-to-reach lashes, Space NK, Blue Mercury, Nordstrom and gosmile.com. Currently, the brand said Bill Boraczek, senior vice president is available in over 1,000 doors, including independent stores, spas and spe- of marketing for Coty Beauty. Print and cialty boutiques. TV ads, featuring British actress and pop Faust also hired an expert in oral care, Dr. Jason Feng, as the brand’s singer Sophie Ellis-Bextor, will play off manager of product formulation. In the newly created position, Feng the idea of “getting curves in the right will be responsible for new product formulations, as well as all refor- places,” said Goldberg. Based on the mas-

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The Beauty Report WWD.COM SkinMedica Plays Up Ownership of L’Oréal Raises Question TNS Antiaging Brand PARIS — Might Nestlé acquire L’Oréal in 2009? Dang, equity analyst at Richelieu LOS ANGELES — With four new products Today, the Swiss food group has a 28.9 percent stake in Finance, who explained that follow- launched this year, a new e-commerce site the French beauty giant, which is also 30 percent owned by ing Nestlé’s sale of its Alcon hold- and plans for new offerings next year, phar- Liliane Bettencourt, the 86-year-old daughter of L’Oréal’s ing, it will have a signifi cant amount maceutical and clinical skin care company founder, Eugene Schueller. Under terms of the current share- of cash to invest, and that L’Oréal SkinMedica is focusing its efforts on antiag- holder agreement, Nestlé is free to sell its holding in L’Oréal would help bulk up its health and ing through its growing TNS line. starting April 29, 2009, but cannot take a majority share in the personal care holdings. “It’s been a blockbuster year for us,” said fi rm unless Bettencourt passes away earlier, “Nestlé wants to buy L’Oréal,” Josie Norine, senior product manager of aes- and, in that case, only six months after. said another analyst, speaking under thetics for the Carlsbad, Calif.-based compa- Post-April 29, 2009, Nestlé does not the condition of anonymity. ny. “Our approach has been innovative new have the right to acquire L’Oréal un- Yet some think such a deal makes antioxidants that go beyond fi ghting free-rad- less she gives her approval, and that little sense. Patrick Hasenboehler, ical damage.” six-month grace period remains in equity analyst at Sarasin Equity With a new chief executive offi cer at its the event of her death. Research, for instance, believes the helm since April and an injection of almost Market speculation heated up two fi rms already have obtained all $26 million from outside fi nancing, the brand this April that Nestlé will acquire of their synergy potential. is aiming to provide skin care solutions that L’Oréal following the Swiss food Of course, Nestlé could also opt to target specifi c needs under the TNS tag. TNS giant’s announcement it would sell buy a company in a non-beauty sector, stands for tissue nutrient solution. a 24.85 percent stake in its Alcon eye such as confectionery, or none at all. A key new product, TNS Essential Serum, care business to health care company But should Nestlé’s holding in L’Oréal was launched this past September. The dual- Novartis, with an option to sell its re- ▲ Liliane Bettencourt be raised to more than one-third, it chamber container holds the TNS Recovery maining 52 percent stake in 2010. The trans- in July 2008. would be obliged to launch a takeover Complex, the fi rst TNS product from seven action gave Nestlé an initial $11 billion cash injection. At bid, according to French law. the time, Nestlé stated the proceeds would in part “support A Nestlé spokesman had no comment on the L’Oréal TNS Night Eye opportunities for profi table growth in line with the group’s speculation. Repair nutrition, health and wellness orientation.” L’Oréal is the world’s largest beauty fi rm, with rev- Some believe Nestlé’s growth through acquisition is a enues in 2007 of 17.06 billion euros, or $23.39 billion at prime possibility. average exchange. “I think it is the most logical scenario,” said Chicuong — Jennifer Weil SNIPPETS WILD AID FRAUD?: A lawsuit fi led by 220 Laboratories claiming said of her role as spokeswoman. “And I defi nitely fi t that bill.” hair care line David Babaii for WildAid, marketed by Kate Hudson While the MAC counter was heaving Thursday thanks to Ferguson’s and hairstylist David Babaii, was invented by the Riverside, Calif.- visit, even on regular shopping days it’s not unusual for the space based cosmetics manufacturer will be heard in the Superior Court to be thronged with a mélange of hipsters, yummy mummies and years ago, and the new APS Corrective of California. A U.S. District Court this week rebuffed an effort by fashionistas. “This is MAC’s number-one counter in the world,” Complex. Between them, ingredients include the defendants to make the case federal under copyright law. The said Demsey. soluble collagen, cytokines, matrix proteins, case, which accuses Babaii, Hudson and current David Babaii peptides, antioxidants and Ergothioneine, for WildAid manufacturer Universal Packaging Systems of fraud, ISSE READIES FOR SHOW: As the West Coast’s largest beauty event, a natural amino acid with superantioxidant misappropriation of trade secrets and breach of contract, centers the International Salon & Spa Expo (ISSE) will take place Jan. 31 properties. The serum is designed to smooth upon a plan that 220 Laboratories alleges it drew up for the Babaii to Feb. 2 in Long Beach, Calif. The event expects to host more fi ne lines and brighten and lighten age spots. products to contain volcanic ash from the Vanuatu Islands. The than 400 exhibitors and will once again showcase the International The TNS Essential Serum was the latest Superior Court is not likely to take action on the case until January or Fashion Theater, Latino Fashion Theater, Technical Theater, Hands- in a smattering of new products released by later, according to 220 Laboratories attorney William E. Crockett, who On Education and other complimentary education classes covering SkinMedica this year, following TNS Ultimate added that the company is also considering pursuing an injunction everything from hair, nails and skin to business practices. Planned Daily Moisturizer + SPF 20, which launched to stop David Babaii for WildAid sales while the legal matter remains presentations will feature industry experts such as Kim Vo, Orlando in March, TNS Night Eye Repair in May and unresolved. David Babaii for WildAid products are available at Target, Pita and the Rusk Artistic Team. New for 2009 will be Massage TNS Line Refi ne in June. CVS and Duane Reade. Sales have been estimated to reach $20 Wellness & Education which will offer continuing education credits The line’s approach, says ceo Mary Fisher, million this year and $60 million by the end of 2009. for licensed massage therapists. is to offer a few highly effective products available only through doctor’s offi ces and TWEEZE NO MORE: Anastasia Beverly Hills, the salon and product line BIG SHU TO FILL: Shu Uemura Art of Hair has unveiled its Muroto medical spas, having the look and feel of con- focusing on eyebrow shaping, has won a multimillion-dollar trade Volume collection — a shampoo, conditioner and amplifying temporary aesthetic beauty offerings but with secret judgment against Japanese company LuyVie Inc., which was treatment designed add volume to fi ne hair. Muroto, which is a scientifi c foundation and visible results. found to be using patented techniques and branding by Anastasia formulated with Depsea water with magnesium to tone and amplify “We want to create a line with key ingre- Soare, owner of the Anastasia Beverly Hills, for the specifi c purpose hair, is the fi rst new hair care collection from the brand since dients that match their skin’s needs, where of opening an Anastasia Beverly Hills salon in Japan. Apparently, its launch last year. The brand, which is currently sold in about a doctor can diagnose what is required and employees of LuyVie Inc. were trained in Los 330 salons, is looking to ramp up its hair care can suggest products that will deliver appar- Angeles by Soare and had signed a confi dentiality profi le since executives believe results are best ent results,” said Fisher. agreement. The judgment was ordered by the U.S. achieved when items are used as a collection. The TNS Ultimate Daily Moisturizer + District Court, Central District of California. Art of Hair initially launched as a hair care SPF 20 was designed to protect the skin and styling range but its positioning was more against ozone-related and environmental SALON STYLE: The Stowe Mountain Lodge of styling focused. Beginning in 2009, new salon damage, said Norine. The TNS Night Eye Vermont is opening a new salon and spa to be doors will be required to buy-in the brand as Repair is an undereye moisturizer that was operated by Boston-based hairdresser Mario a collection. Existing salons carrying only Shu formulated after consumers expressed a Russo. The salon will offer hair, nail and makeup styling items will be targeted to carry hair care need for something to deal with dark circles services with bridal specialists on site. Russo’s as well. Muroto Volume Amplifying Shampoo will and fi ne lines under the eyes. And the ap- range of bath, body and hair care products will sell for $40; the conditioner for $50, and the plicator-tip TNS Line Refi ne is designed for be provided in each room for hotel guests and treatment for $60. use around the mouth, eyes and on crow’s- is available for purchase in the salon. Russo feet; the product’s light diffusers soften the has been keeping busy. On Wednesday night, THE BORBA DEPARTMENT: Borba launched in Saks appearance of fi ne lines and help mask im- his Boston salon located at luxury retailer Louis Fifth Avenue’s New York fl agship this month perfections. Prices range from $70 for the Boston styled about 30 models for the fashion with a fi fth-fl oor display containing the skin care Line Refi ne to $250 for the Essential Serum. show presented at the Institute of Contemporary brand’s complete range of around 40 items and Products are packaged in silver gray con- Art 360 Night and Day annual fund-raiser. a refrigeration component. Borba’s “focus on tainers with lilac-colored accents, and will combining both ingestible nutraceuticals and join a line consisting of 11 body, face and lip ROYAL VISIT: London’s Selfridges department effective cosmeceuticals is on target with the TNS products sold through 3,000 doctors’ of- store’s beauty department was a smidge current trend of the beauty world, and Saks fi ces and medical spas in the U.S., and in 24 more glamorous than usual Thursday, when ▲ Fergie at a MAC event at Fifth Avenue is extremely pleased to offer this countries internationally. A new e-commerce Stacy Ferguson, aka Fergie, made a personal London’s Selfridges. line,” said Wendy Gottfried, Saks’ vice president, site will also showcase the products, refer- appearance at the MAC Cosmetics counter. divisional merchandise manager of intimates, ring new consumers to their local physician “She’s ‘the Dutchess,’ but not the Duchess of York,” quipped John cosmetic accessories and fragrances, in a statement. “Strategically or medi-spa and fulfi lling orders for existing Demsey, group president of the Estée Lauder Cos. and chairman of placing Borba on our contemporary fl oor in the New York fl agship consumers. And, unlike other cosmeceuti- the MAC AIDS Fund, referring to Ferguson’s album, dubbed “The store is a way for our younger customer to experience this cutting- cal lines that eventually start rolling out in Dutchess.” “She’s here to talk about Viva Glam as she’s our current edge development at Saks Fifth Avenue.” Borba founder Scott- mainstream retail channels, Fisher said that spokeswoman.” Earlier that day, Ferguson presented $449,000 Vincent Borba estimated that the brand would generate several- SkinMedica would continue to be available at current exchange, to U.K. initiatives meant to help stymie hundred-thousand dollars in fi rst-year revenues at Saks. Borba, just through its traditional outlets. the stigma associated with HIV and AIDS on behalf of the MAC which is based in Woodland Hills, Calif., is sold in about 150 U.S. “We have stayed true to our heritage of AIDS Fund, which raises money to support people affected by the doors, while its Skin Balance Waters, distributed by Anheuser- being in professional channels,” said Fisher. disease. In total, the fund has raised over $130 million through Busch Cos. Inc. are in more than 500. The company is owned by “Along with the quality of our product, it the sale of Viva Glam lipstick and lipglass. “In this position you Borba, Liberty Media Corp., Internet entrepreneur Brad Greenspan identifi es us substantially.” have to be a person who’s not afraid to speak your mind,” Ferguson and Borba chief operating offi cer Greg Sinderbrand. — Kavita Daswani 357 Beautiful PPerfumeerfume Boutiques and GGrowing!row 16 WWD, FRIDAY, DECEMBER 12, 2008

The HBA Report WWD.COM Kanebo Creates Treatment Makeup Mineral Makeup Trend To Remain Hot in 2009 By Andrea Nagel Three eye shadow palettes have been created, each with four shad- THERE’S BEEN A QUESTION OF KANEBO IS GETTING COL- ow choices. Shadows are infused longevity hanging over the future of orful — but is also keeping with a “weightless moist glow mineral makeup, one of the hottest benefit top-of-mind. factor, airy powder and layered trends in the past five years. At least a The Japanese beauty brand amino pigments to ensure... partial answer may arrive in February, is set to launch Sensai Colours, radiant, translucent color,” when Physicians Formula launches its a new treatment makeup line noted Juliano Gomis, Kanebo first 100 percent mineral brightening consisting of eye, lip and cheek Colours national training di- bronzer and face brightener under the items with formulas that draw on rector. Highlight shades in Mineral Wear franchise, which con- water and silk to address moistur- each palette contain higher tains over 70 items for the face. ization and impart a silk-like glow, concentrations of weightless “There’s a profusion of mineral according to Maiko Kitagowa, Sensai moist glow factor to cover a products, but since there are no regu- Colours marketing manager. A Sensai wider area, he added. There lations, people put a sticker saying Each item in the line is designed Colours is also an Eyelid Base to prep that its mineral without adhering to to follow Japanese aesthetic ideals, blush. the skin for color. the same ethics across the board,” said such as Kasane kimono layering, that There are fi ve Cheek Blush Ingrid Jackel, Physicians Formula’s can be seen in the makeup line’s use options available. Kanebo exec- chairman and chief executive offi cer. of translucent hues. Kasane kimono layering, said utives point out that the layout of “It’s about working with beauty educa- Kitagowa, is a tradition where the layering of silk the colors in the compact are a nod tors to help educate consumers about can reach up to 12 layers, each placed in a precise and to the layering tradition. what mineral really means.” symbolic order. Two eyebrow pencils, two liquid eye- Jackel said she saw an opportu- Sensai Colours consists of 22 items and marks the second liners, two eyeliner pencils and six lip liner nity for long-wearing mineral makeup go-around of the Sensai makeup renewal strategy, following pencils round out the line, as well as a fragrance-free Gentle while studying the $170 million face the launch of its Fluid Foundation line in August. Makeup Remover. makeup market in food, drug and Japanese makeup artist Hisano Komine collaborated with Products ship to stores in February. mass stores. She also worries about Kanebo for the new line, as well as for the foundation range. Kanebo is sold in 36 outlets in the U.S., including Bergdorf market erosion caused by the fl ood Sensai Colours lip items consist of two ranges: Lasting Goodman, Takashimaya, select Saks Fifth Avenue and of knockoffs. Treatment Rouge and Deep Moist Shine Rouge. Lasting Barneys New York stores, as well as high-end perfumeries. Treatment is offered in 18 shades and is formulated to pro- Kanebo had launched a color line in 2004, which was lim- vide long-staying, vivid color with pigments coated with ited to eye and cheek items. In 2005, Kanebo launched The kanten, a jellylike substance obtained from red seaweed and Lipstick, an antiaging lip treatment range. Sensai Colour will often used as a thickener in Japanese food. An “auto coating replace the existing Kanebo color collection. gel” in formulas is used as a silicone-derived liquid to mois- Sensai Colour is projected to generate $1.5 million in its turize skin. The Deep Moist Shine items aim to moisturize fi rst year. Makeup comprises about 24 percent of the entire lips with a translucent fi lm of color with Phyto Volumising Sensai brand (which also makes and markets skin care). Oil. It is available in 12 shades. Executives expect the new color items could boost that by 1 A Silky Lip Gloss in two shades, as well as a Lip Base with to 2 percent, raising the category of color to $2.5 million to $3 SPF 15, are also available. million in the U.S. WWD Beauty Biz Honors Innovators ““We’reWe’ progressively seeing more aandnd mmoreo of these cheaper mineral pproducts,roduc but as consumers get more eeducatedducate about the mineral category ttheyhey willwi seek more credible mineral llines,ines, likeli with what we saw with the green category,”c said Jackel. “Our re- searcsearchh showed that only 37 percent ooff wowomenm 18 and older are mineral users, so there is defi nitely an oppor- tunity to target this age range.” After launching three years ago, the Mineral Wear assortment in- cludes 70 items for the face. The com- pany wanted to introduce its fi rst 100 percent mineral talc-free brightening bronzer and face brightener pressed powders under the Mineral Wear franchise. The proprietary formula is composed of light-refl ecting micron- ized minerals such as pink, orange and white sapphire, green tourma- The winners. line and citrine. Designed to even out skin tone and add a radiant glow, the PHOTO BY JOHN AQUINO PHOTO BY items will feature a new label to ex- plain that the products are 100 per- BEAUTY INDUSTRY EXECUTIVES MET AT THE FOUR (fragrance), Intelligent Nutrients (hair), Tria Laser (skin), cent mineral. Launching in February, Seasons restaurant Thursday morning to acknowledge the Givenchy Phenomen’Eyes Mascara (color cosmetics). both will be available in four shades year’s most inspiring achievements at the sixth annual WWD • Breakthrough Product of the Year, Mass: Bath & Body Works and retail for $13.95. Beauty Biz Awards. Black Amethyst (fragrance), Clairol Nice ’n Easy Perfect “There’s a whole trend going to- The breakfast celebrated innovative products, fresh mar- 10 (hair), Dr. Miracle’s My Goodbye Acne System (skin), wards radiance and brighter skin in keting methods and other signifi cant 2008 beauty exploits. Physicians Formula Organic Wear (color cosmetics). mineral products — it’s about achiev- Among the attendees were Bernd Beetz, chief execu- • Newcomer of the Year: Francesco Clark of Clark’s ing a healthy overall glow without tive offi cer of Coty Inc.; Thia Breen, Lynne Greene and Botanicals (person), Yes to Carrots (brand). showing off fi ne lines and wrinkles,” Aerin Lauder of the Estée Lauder Cos. Inc; Pamela Baxter, • Most Innovative Ad Campaign: Calvin Klein Secret Obsession said Jackel. president of Christian Dior’s U.S. division and LVMH Moët (prestige), Maybelline New York Garnier (mass). Capitalizing on the success of the Hennessy Louis Vuitton’s perfume and cosmetics group; • Most Innovative Marketer of the Year, Prestige: Dior (compa- tinted moisturizer launch in Organic Joseph Campinell, president of L’Oréal’s consumer products ny), Nicky Kinnaird of Space NK (person). Wear, Physicians Formula wanted to group, and Carol Hamilton, president of its luxury products • Most Innovative Marketer of the Year, Mass: Target (company), give consumers a tinted moisturizer division, and Iain Holding, president of Beiersdorf Inc. Esi Eggleston Bracey of P&G (person). with SPF 15 under the Mineral Wear Opening the event was Wendy Liebmann, ceo and self- • Retailer of the Year: Macy’s (department), CVS Beauty 360 franchise to offer consumers a light- dubbed chief shopper of WSL Strategic Retail. Citing (mass), HSN (electronic), Pure Beauty (specialty). weight formula that still had mineral her fi rm’s latest report, “How America Shops in Crisis,” • Best Executed Launch Strategy, Prestige: Estée Lauder benefits. Available in four shades, Liebmann provided insight on consumer shopping trends Sensuous (fragrance), Sebastian Professional (hair), Clinique the tinted moisturizer will retail for during the current economic downturn, emphasizing the im- Medical (skin), Lancôme Oscillation (color cosmetics). $12.95. The company will also intro- portance of innovation and inspiration to make products and • Best Executed Launch Strategy, Mass: Avon Products (fra- duce a talc-free mineral concentrate brands compelling. grance), Sally Hershberger Supreme Head (hair), Nivea designed as a three-in-one “touch up Twenty eight awards were presented at the breakfast. Good-bye Cellulite Body Program (skin), Sally Hansen tool,” acting as a concealer, powder Here, the complete list. Natural Beauty Inspired by Carmindy (color cosmetics). and foundation. • Breakthrough Product of the Year, Prestige: Harajuku Lovers — Belisa Silva — Michelle Edgar KANEBO PHOTO BY THOMAS IANNACCONE; BEAUTY BIZ AWARDS BY JOHN AQUINO BY BIZ AWARDS THOMAS IANNACCONE; BEAUTY KANEBO PHOTO BY Business as Usual

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IN PRINT | ONLINE | IN PERSON 18 WWD, FRIDAY, DECEMBER 12, 2008 WWD.COM Industry Imports Slide 2.1% Bloomingdale’s Revs Up for Dubai By Liza Casabona ward cycle in the volume of ap- COCKTAILS AND MINI CRAB CAKES ASIDE, THE EVENT TO CREATE parel and textiles it ships to the buzz for the first international Bloomingdale’s stores in Dubai was billed WASHINGTON — Economic chal- U.S., decreasing 27.4 percent to by chief executive officer Michael Gould as “an informational meeting, lenges continued to be a drag 113 million SME. Imports from not a party.” on shipments of apparel and Mexico dropped 13 percent to Nevertheless, the mood was festive and the location — the textiles to the U.S., fueling a 228 million SME. Powerhouse at the American Museum of Natural History in Manhattan trend that has dogged the in- Bangladesh showed the larg- — was novel. “Instead of having it in the store, we thought we’d do dustry all year. est increase in import volume, something different and come to one of the Elie Apparel and textile im- growing 21.5 percent to 160 great icons of New York,” Gould said. Tahari ports dropped 2.1 percent in million SME. Shipments from The gathering, which was cohosted by October to 4.78 billion square Vietnam increased 21.4 per- Al Tayer Insignia, Bloomingdale’s partner in meter equivalents compared cent to 176 million SME. India the Middle East, attracted top executives from with the same period last year, increased textile and apparel both companies as well as designers such as John the Commerce Department’s imports 13.4 percent to 263 mil- Varvatos, Elie Tahari and Nanette Lepore. Offi ce of Textiles & Apparel said lion SME. The stores — one for men’s and women’s apparel and the other a home unit Thursday. Apparel and textile The top fi ve apparel suppli- — are not scheduled to open until February 2010, but expectations are high. import levels have been trend- ers to the U.S. in October were “This is a defi ning moment in Bloomingdale’s history,” Gould said, noting that ing down all year; October was China, Vietnam, Bangladesh, the retailer is determined to transport the company’s DNA to its Middle Eastern the eighth consecutive month Honduras and Indonesia. The counterparts. In fact, he said certain “elements” of the Dubai stores will be “bet- in which shipments to the U.S. top textile supplier was China, ter than 59th Street” and will help catapult the store into the 21st century. fell in year-over-year compari- followed by Pakistan, India, Bloomingdale’s will be one of the anchors of the Dubai Mall, the larg- son. Year-to-date apparel and Mexico and South Korea. est in the world at 12.1 million square feet. textile shipments to the U.S. are The overall trade deficit Gould said the Young East Sider and contemporary businesses will off 4.5 percent, compared with a widened to $57.2 billion in John Varvatos and have an increased presence in the store: “All the best designer merchan- 3.9 percent decline for the same October from $56.6 billion last David Fisher dise in the world is there, but we’re going to be driving the contemporary year-to-date period in 2007. month. China was responsible business.” He said the goal is to “It doesn’t look good for the for $28.9 billion of the trade create the “excitement of SoHo and import situation or anything defi cit, said Peter Morici, a busi- 59th Street” in one location. that deals with textiles and ap- ness professor at the University Shireen El Khatib, ceo of Al parel,” said Richard Yamarone, of Maryland. Chinese imports Tayer, said she was humbled to be chief economist at Argus combined with petroleum and “entrusted as the brand’s custodian” Research Corp. “This is an on- automotive imports “account for its fi rst foray outside the U.S. Al going trend that shows no sign for nearly the entire U.S. trade Tayer, which has brought luxury of abatement.” defi cit,” Morici said. brands such as Giorgio Armani, The volume of apparel im- “The trade numbers show Gucci and Yves Saint Laurent to ports increased 2.4 percent to why it is critical to include the the Middle East, said there are no 2.27 billion SME in the month, strongest possible provisions in immediate plans for additional but textile shipments fell 5.8 any economic stimulus package Bloomingdale’s stores in the region, percent to 2.5 billion SME. to buy American-made goods but that could change. “We’re going Imports of textiles and ap- and services,” said Auggie to concentrate on getting the fi rst parel from China dropped 0.5 Tantillo, executive director of one right and then talk about open- percent from October 2007 to the American Manufacturing ing more in the area,” she said. 2.06 billion SME as falling tex- Trade Action Coalition. “If that Khatib said that, in addition to tile import levels counteracted doesn’t happen, the money will Bloomingdale’s, Al Tayer plans to add a rise in apparel. Canada con- just stimulate other economies monobrand stores in Kuwait, Saudi tinued a long-standing down- at the expense of ours.” Arabia and Qatar including Alexander McQueen, Stella McCartney, Boucheron, Armani, Jimmy Choo, Michael Gould, Shireen El Bottega Veneta and Thomas Pink. Khatib and Marvin Traub. Leonard Lauder — Jean E. Palmieri Colombia’s VP Hopeful of Trade Deal JOHN AQUINO PHOTOS BY By John Zarocostas GENEVA — Colombian Vice President Francisco Santos Calderon Union Proposes Entity to Safeguard Garment Center said he is hopeful his government can convince the administration By Lisa Lockwood union is one of many agreements they need to of President-elect Barack Obama to endorse the stalled bilateral have. There’s no agreement with the city, which free trade agreement. NEW YORK — UNITE HERE affiliate New York has a long way to go in terms of rezoning it. If Congressional approval would increase the prospects for Metropolitan Area Joint Board, the local union they have some deal with the union, they’re out Colombian exports of apparel to the U.S. that were worth $398 mil- that represents thousands of Garment Center of the gate, but far from the fi nish line.” lion in 2007. Colombia’s apparel exports worldwide more than dou- workers in New York, has proposed the creation Kolb said there are many ideas being thrown bled to $1.3 billion last year from $520 million in 2000, according to of a nonprofit or public entity, such as a New around, and there’s some validity to the idea of the World Trade Organization. York Fashion Space, to manage and safeguard a New York Fashion Space. “They’re looking at a U.S. concerns about Colombia’s human rights record, particular- the remaining square footage that would be des- building or two dedicated to young talent, but who ly the killing and kidnapping of trade unionists, helped block a vote ignated for the apparel industry. pays for that? There’s no plan for on the bilateral accord this year. Edgar Romney, executive funding. This is just an idea.” “I’ll oppose the Colombia Free Trade Agreement if President vice president of UNITE HERE There is an estimated 1 mil- Bush insists on sending it to Congress because the violence against and manager of the New York lion square feet in the Garment unions in Colombia would make a mockery of the very labor pro- Metropolitan Area Joint Board, Center being occupied by ap- tections that we have insisted be included in these kinds of agree- issued a statement this week parel manufacturers, a tiny ments,” Obama said in April on the campaign trail. “So you can in response to a WWD article part of the area’s total 10 mil- trust me when I say that whatever trade deals we negotiate when Wednesday that said union lead- lion square feet, according to I’m president…they’ll have strong labor and environmental protec- ers were on board with a propos- Identity Map Co., which surveys tions that we’ll enforce.” al to preserve more than 300,000 businesses in the district. There Calderon said the government has stepped up efforts to confront square feet in the Garment Center have been many discussions the problem. Murders of trade unionists, which reached 198 in 2002, for apparel manufacturing. that a certain amount of space have since “decreased year after year, except this last year in which “The union supports keeping is needed to preserve a thriving we have seen an increase…because of attacks by illegal groups,” he good middle-class jobs in both Garment Center, as is the neces- said, adding there have been 41 victims. apparel manufacturing and ho- sity of having a signifi cant num- The International Trade Union Confederation estimated in 2007 tels,” said Romney. “It’s a posi- ber of factories, suppliers and that Colombia was the world’s worst violator of workers’ rights, with tive development that transpar- showrooms in one area to main- 39 trade unionists murdered. ency and public accountability tain its place as a world-class Calderon said the failure to give the green light to the Colombian of hotels has been assured with fashion center. As the number Free Trade Agreement “is sending the wrong message to the region special permits, but we must also of jobs in the Garment Center and the wrong message to Colombia, so we hope that in the end, the have a mechanism to safeguard The union supports preserving New continues to decline, real estate FTA is going to be approved.” our city’s manufacturing space.” York’s Garment District. developers and landlords have A spokeswoman for the U.S. Trade Representative said, Romney said that, without been lobbying to try to free up “Colombia has made signifi cant advances to combat violence and this space, the Garment Center’s future cannot some of the 10 million square feet for higher- instability….President [Alvaro] Uribe has dramatically reduced vio- be guaranteed. paying tenants or even residential buyers. lence against trade unionists.” A spokeswoman for UNITE explained there In the past few months, designers and the Uribe has established an independent prosecutorial unit to “in- have been a lot of illegal conversions in the CFDA, apparel industry workers and other in- vestigate and pursue charges against those accused of homicides Garment Center already, and the union would terested parties have said that saving 250,000 against labor unionists,” the spokeswoman said. like to see that stopped. The union has proposed to 500,000 square feet for the use of apparel But human rights groups and top United Nations offi cials said one or two buildings that would be a fashion firms would be an acceptable compromise. Colombia’s record remains poor. space run by a nonprofi t entity. Still, there are many details to be worked out “Colombia faces grave human rights challenges…including hos- Steven Kolb, executive director of the Council among New York City offi cials, union leaders, tage-taking, [and] extrajudicial executions,” Navi Pillay, the U.N. of Fashion Designers of America, said Thursday, Garment Center landlords and apparel indus- High Commissioner for Human Rights, said last month. “I imagine having some agreement with the try leaders. WWD, FRIDAY, DECEMBER 12, 2008 19 WWD.COM Consumer Anxiety on Rise in China By Lisa Movius sional buyers” will be the hardest-hit fashion consumers. Those under age 33 remain fairly shielded because “Before, a lot had confi dence and would save up a lot they are not in the stock or property market and spend SHANGHAI — Falling exports, World Bank warnings and facto- of money for that [Louis Vuitton] bag. But now they come most or all of their salaries. Nonetheless, Rein said, ry closures — China’s economy is being hit by the global eco- back to their normal life and can’t afford that. The real “The linchpin will be whether they get big bonuses and nomic downturn, and its consumers are feeling the pinch. buyers will maintain their lifestyles but change to more salary increases of 15 percent at Chinese New Year.” Even as the Chinese government moves rapidly to discreet styles, different from during boom times. For China’s white-collar workforce has become accus- stimulate the country’s economy and consumer spend- example, before people bought the logoed LV bag; now tomed to annual salary increases of 10 to 15 percent, ing via a $586 billion stimulus package, a consensus is they will switch to something less obvious, less showy, and many younger Chinese have no memory or life ex- growing: The nation won’t be able to escape the global with more internal quality.” perience prior to China’s economic boom. It is this de- recession unscathed, and a market once seen as a gold He doubted consumers would begin to trade down to mographic that has driven consumer spending in China, mine for fashion brands will wobble. The emergence of domestic brands to save money, arguing the quality and and French predicted this consumer category is in for the new middle and upper classes in China distinguish- status afforded by foreign brands is a diffi cult habit to a rude awakening. He said a recent conversation with es the current situation from the Asian fi nancial crisis shake. Rather, “midrange luxury will see strong growth, management at a Chinese lifestyle magazine illustrates that brought the country’s fi rst boom to an end in the like Lacoste, Ralph Lauren, Tommy [Hilfi ger] — accessi- the current mind-set. late Nineties, as does China’s greater integration into ble luxury,” he predicted. “Zara and H&M will continue “They told me that their ad sales guys came in want- and dependence upon world markets. their growth. Their products are very fashionable, their ing their annual 10 percent raise. They told them, ‘You’re “I think there is going to be massive short-term hurt,” prices reasonable, they are international brands and joking.’ They’re selling less ads and have less pages to said Tom Doctoroff, greater China chief executive offi cer their quality is good.” sell, and it’s not so easy to job hop anymore. The ad guys of the J. Walter Thompson advertising agency. “It is psycho- “The real opportunity is for the midpriced apparel were stunned, they have no way of linking performance, logically based: The middle class is newly mint- pay and conditions,” French said. ed, and this is China’s fi rst time [dealing] with a Even in boom times, Chinese consumers are slowdown and having a middle-class mind-set.” H&M relatively conservative spenders and maintain a As global demand for Chinese-made goods customers in high savings rate, which has been a concern to slackens because of the international eco- Shanghai. the government as its stimulus package includes nomic crisis — with exports falling 2.2 percent measures for rural consumers to buy products last month, the largest drop in almost 10 years such as fl at-screen TVs and washing machines. — China’s government said industrial produc- “In China, we have never seen a dramatic loos- tion grew a lower-than-expected 8.2 percent in ening of purse strings and decline in the savings October, and consumer confi dence in the third rate,” Doctoroff said. “There are no spendthrifts quarter dropped 0.3 points from the previous in China, no matter how high up the ladder you quarter. Reports on consumer confi dence and go. Their attitude is that it’s all here today, gone spending were mixed for October, since sales tomorrow. Even China’s wealthy started out poor, invariably boom over the National Day holiday there were no millionaires 10 years ago, there at the beginning of the month, then slump for are no established wealthy here.” the remainder. Doctoroff added the slowdown will have its About 10,000 textile and garment facto- strongest impact on the middle class with newly ries shut down in the fi rst six months of the acquired wealth. “This is their fi rst extraneous year and 20 million manufacturing jobs were macroeconomic shock, and they can’t control eliminated, according to Chinese government their money, so they will keep it safe. There’s no fi gures. In addition, more expensive raw ma- social security and no service economy, and dis- terials and higher labor costs have hurt the posable income is something they’re not used to manufacturing sector. having,” he said. “You’re going to see a massive stanch of Observers stressed that younger, unmarried capital that will impact a lot of small business- consumers are less exposed to a potential eco- es,” Doctoroff said. “Then there’s the export problems, segment, like Levi’s,” Doctoroff said. “Status will never nomic downturn. Most Chinese live with their parents so export-driven provinces like Guangzhou and Fujian disappear, and the difference in quality is big enough…. before marrying, so they have few overhead expenses. will see tens of thousands of businesses closing. That The smartest companies have the price tiers, plus acces- Doctoroff said young, single consumers spend an aver- will bring a big crisis, although eventually their workers sories. Those with the portfolio to catch the downward age of 20 percent more than they earn. “So it seems that will be reabsorbed. [Government] investment will keep slide are well positioned, but they are still expensive for they are temporarily spendthrift, but in fact they are things growing. Social stability is necessary, but will China. They should make sure they position their brand not: They see it as investing in their career and social take time. It will be bad, but not like the West.” as an investment in forward momentum, in the desire to standing,” he explained. “So, it is temporary.” Access Asia research fi rm founder Paul French voiced move up the ladder. Be about public payoff, not internal The young are even spending on credit, which gener- a similar view. “People are starting to get very panicky. indulgence. Be essential, not a luxury.” ally is rare in China. “The Chinese are famous for their There is a feeling that they will hit a brick wall quickly and China Market Research’s founder and director high savings rate,” Lu said. “They save their money for to- stop going out, shopping, eating out. Heads are down, peo- Shaun Rein concurred that midlevel retail brands morrow, and do not spend it. However, for the 1980s-1990s ple are riding it out. We’re seeing a slowdown on growth like Giordano and Baleno stand to gain in the current generation, it is more acceptable to spend more money: rates by a few percentages across the board,” he said. climate, as do cheaper indulgences like fast food and They spend all of their salaries and get blamed by society That is one of the reasons the government unveiled domestic beer. “There is not the same fear here as in for lacking the Chinese traditional way of living.” a stimulus package last month. Earlier this week, at the the U.S. Chinese are still shopping, but will move from In addition to cultural patterns, credit was rare be- conclusion of the three-day Central Economic Work what’s aspirational to what’s comfortable,” he said. cause banks lacked the infrastructure and customers were Conference, Chinese offi cials again pledged to maintain Despite the decline in consumer confi dence, China high risk, but Rein said that is changing, with credit card “stable, healthy” growth in 2009. Market Research Group’s recent survey of 150 young, use increasing at least 20 to 25 percent every year. There Although Chinese consumer spending will slow its middle-class workers in Shanghai and Beijing found that were 13 million credit cards in China in 2005, but by the growth rate, a contraction seems unlikely, and increased 70 percent are optimistic about the economy and will not end of 2007, there were 56 million, and up to 115 million by consumer caution provides opportunities for midrange change their consumer and lifestyle habits, while 80 per- mid-2008, he said. However, those numbers remain small brands. “Domestic consumption won’t stop growing, but cent had faith the Chinese government would make the in China, where 1.1 billion debit cards are in use. everything will go down a price level,” Doctoroff said. right choices to keep the economy strong. “People under 30 have a savings rate effectively of “Disposable income will be held on to or invested more “The middle class, especially in lower- and middle-man- zero,” Rein said. “Young people are very optimistic, they cautiously. Even in the U.S., Wal-Mart is doing all right.” agement levels, are the most optimistic,” Rein said. “Senior have always had their salary going up. They want it now, Pierre Xiao Lu, author of “Elite China: Luxury managers and those in manufacturing are less so. They are instant gratifi cation, not to save up and wait. They don’t Consumer Behavior in China” and an associate professor seeing everyday budgets cut, limitations on nonessential have medical care and pensions to worry about. Of that 40 of marketing at Shanghai’s Fudan University, said “occa- travel, limited hiring, so they are seeing the problems.” percent savings rate, it is 50 percent for people over 50.” IT Holding Reaches Deal With China’s Mensun for Asset Sale By Andrew Roberts by market changes,” the company said. continue talks with Mensun on an exclu- cast an 8 percent drop in full-year revenues IT Holding did not disclose what assets sive basis through Dec. 31. In September, and a lower profi t margin, after a net loss MILAN — IT Holding SpA said late it could sell to Mensun, although specula- the Italian company said it was in nego- of 10.1 million euros, or $15.4 million, in Thursday it had reached a nonbinding tion increased Thursday that the deal cen- tiations regarding the possible sale of a the fi rst nine months of the year, compared agreement with China’s Mensun Ltd., tered on Ittierre SpA, the fashion group’s minority stake in PA Investments SA, IT with earnings of 6.6 million euros, or $8.9 concerning “a possible disposal of assets” apparel manufacturing unit. Reportedly, Holding’s parent company, and possible million, in the same period in 2007. belonging to the Italian fashion group. Perna wants to sell Ittierre for at least 185 commercial and production agreements Revenues through Sept. 30 fell 7 per- IT Holding, which owns the Gianfranco million euros, or $239.7 million, or the in the Asian market. cent to 468 million euros, or $712.5 mil- Ferré, Malo and Exte brands and operates equivalent value of its bond, which ex- Nebuloni is a former ceo of Italian en- lion, while earnings before interest, taxes under license the Just Cavalli, Costume pires in 2012. Mensun, meanwhile, is said ergy group ERG SpA, where he led the and depreciation dropped 16 percent to National C’N’C and Galliano labels, also ap- to be interested in appointing Thierry strategic and organizational transforma- 83.2 million euros, or $126.7 million. pointed turnaround specialist Pierantonio Andretta, a former manager at Gucci tion of the company from 1992 to 2003. Dollar fi gures were converted at av- Nebuloni as chief executive offi cer, replac- Group and LVMH Moët Hennessy Louis In 2005, he cofounded Italian investment erage exchange rates for the periods to ing Tonino Perna, who remains chairman. Vuitton, as Ittierre’s ceo. company Management & Capitali, focused which they refer. “This change in the organization shows Neither IT Holding nor Mensun could be on turnaround projects, leaving in 2007. As of Sept. 30, following a reduction the ability of IT Holding to promptly adapt reached for comment Thursday evening. IT Holding is under intense pressure in working capital, IT Holding’s debt was itself, introducing new skills and experi- Last week, IT Holding said its board due to the size of its debt and a string of 295.4 million euros, or $382.8 million, ence to manage new challenges generated had given Perna “a wide mandate” to poor results. In November, the group fore- which includes the bond. 20 WWD, FRIDAY, DECEMBER 12, 2008 WWD.COM Media/Advertising The Editor’s Letters: Holiday Helpers By Stephanie D. Smith and Amy Wicks Glenda Bailey, editor in chief, Harper’s Bazaar Bailey used Chanel as an example of the fashion industry’s response to the economy. Earlier this fall, when editors assembled their holiday “Karl [Lagerfeld] presaged our current worries with the most important outfi t of fall gift guides and wish lists, many had no idea to what ex- 2008: a Chanel tweed suit with worn elbows.” Bailey agreed the best look of the mo- tent the economy would contract. But an environment Kim ment is dressing up with a relaxed approach. “In fact, already on the streets, the where General Motors and the largest fi nancial fi rms in France chicest women are wearing banker power jackets with jeans — a poignant refer- the country need bailouts, unemployment is creeping ence to our changing lifestyles.…To amp up the allure at night, pair denim with up and foreclosures are on the rise doesn’t make for a jeweled jackets. After all, particularly in these troubled times, a girl can always cheerful holiday shopping season. That said, most edi- use a bit of glamour.” tors in their December issues were sensitive to the cur- rent fi nancial decline — pondering in their editors’ letters KimK France, editor in chief, Lucky how to change their consumption habits, picking budget- FranceF focused on charitable causes, noting that when friendly gift ideas for $100 or less and promoting their gift tthe economy takes a turn for the worse, charities and guides with cover lines such as “50 Fabulous Gifts Under $50” nnonprofi ts suffer accordingly. She directed readers to a or “Gift Guide: Cheap and Chic!” Here, WWD surveys the editors’ ffeature on how to shop and give at the same time. “It’s the letters of fashion titles for their words of wisdom and advice on sur- hholiday season again, and anyone looking for something viving this particularly cash-crunched season — and beyond. ffor the most happening chick on the block might want to sstart with this great big rocker-girl fl aming heart cuff, not Anna Wintour, editor in chief, Vogue oonly because it’s kind of awesome, but because 40 percent Even Vogue, which regularly features clothes and baubles that cost as oof the proceeds from its sale will go to benefi t Red Cross much as a Hummer, looked for more reasonably priced wares to invest in IInternational.” for December. It chose to edit its Index section down to 59 gift ideas under $500. Wintour also called one of MarthaM Stewart, founder, Martha Stewart Living the least-expensive pieces in a spread on gilded fashion TheT ever-entrepreneurial Stewart just keeps baking on “a perfect buy-now-wear-forever piece” — a $535 Dries — and this season, it’s cookies. “In the past, I have made Van Noten skirt. “What that skirt has, and indeed what pplum puddings and hard sauce, fruitcakes and bread pud- the right buys have now, is warmth and charm — quali- ddings with sour lemon sauce, and I have given out baskets ties that make the business of getting dressed fun and ffull of jars of homemade jams and jellies and homegrown inspiring,” she wrote. hhoney. This year, inspired by our wonderful and inventive ““Cookies” book, I decided to perfect a few more cookie Kristin van Ogtrop, managing editor, Real Simple recipesr delicious enough to be included in a sequel, if we ever publish one.” Van Ogtrop kept it cheap and simple this year, mindful of her readers’ budgets. “Many of us are feeling a pinch JoannaJ Coles, editor in chief, Marie Claire as we approach gift-giving this year. The pinch may be UnderU the headline of “My Two Cents,” Coles writes about the panic she felt to your wallet or maybe just your mood.” In response, aafter buying her own place a few years after graduating from college. After van Ogtrop expanded the offerings under $20 in Real ggetting an adjustable-rate mortgage, she saw interest rates rise, and her Simple’s gift guide, and asked readers for suggestions eexpenses doubled overnight. “I took on extra work and somehow muddled on giving back during the holidays in its front-of-book tthrough.…Never forget: You are your most valuable asset. Whatever money section, “Your Words,” “as a way of inspiring and re- ffears you may be facing, you will survive them, with hard work and a sense minding all of us that, no matter what our circumstanc- oof humor. And don’t forget, you are allowed to indulge yourself this holiday es right now, there are probably scores [of] people who sseason — a hot bath and an extra hour of sleep are still free!” would trade places with us in an instant.” PamelaP Fiori, editor in chief, Town & Country Linda Wells, editor in chief, Allure FioriFi i recommended buying gifts with currency other than money: time. “No matter what Wells urged readers not to sacrifi ce their looks during the economic downturn — it your personal situation is, here’s an idea: Maybe this is the year to celebrate the season may be the only investment paying high returns these days. “Even in diffi cult times, in a quieter, more meaningful way by giving those closest to you your full attention (turn off we still need to fi nd beauty and hope — in a museum, in our closets, in our mirrors. your BlackBerry, shut down your computer, switch off the TV); by attending holiday parties, That may mean buying only one or two key pieces and discovering the versatility of concerts and religious services in an engaged way; by listening intensely to glorious, uplift- things we already own; you don’t have to spend like Marie Antoinette. Keeping up ap- ing music; by keeping the faith (whatever yours happens to be); by reaching out to others pearances, putting our best face forward, is important both literally and fi guratively. and by seriously pondering the meaning of Christmas, Hanukkah, Kwanzaa or anything In other words, we still need to dream.” or anyone else that gets you through the night, the day, and into the New Year.” MEMO PAD SPRINGING BACK: The International Herald Tribune, which decision. She’s getting married next June to TV and comedy planned sale of Valpak, a direct-mail advertiser, and all 11 postponed its annual luxury conference in the wake of writer Paul Simms. Altschull has been at GQ for seven years. of its standalone community newspapers in Texas, North last month’s terror attacks in Mumbai, has now scheduled Prior to that she worked for three years at Vanity Fair. GQ Carolina and Colorado. The Journal-Constitution, the Dayton the gathering for March 25-26 at the Imperial Hotel in West Coast editor Chris Huvane will take over Altschull’s Daily News and The Palm Beach Post are the only Cox New Delhi. The conference, based on sustainable luxury responsibilities. — Stephanie D. Smith newspapers not for sale. — Elizabeth Thurman and hosted by fashion editor Suzy Menkes, was to have taken place Dec. 3 and 4 at the same venue. The speaker ATLANTA CUTBACKS: Nor are the cuts restricted to New ANOTHER WORLD: Diesel is continuing its surrealistic roster is still largely intact, according to the Paris-based York media. The Atlanta Journal-Constitution said it will direction in its ads for spring, which will break in February paper. Confi rmed speakers include François-Henri Pinault, eliminate 56 full-time and 100 part-time jobs in the magazines, including GQ, Details, Flaunt and Nylon, as well chairman and chief executive offi cer of PPR, and designer circulation department and reduce distribution by 5 percent as outdoors in major cities like New York and L.A. Using Stella McCartney. Publisher Stephen Dunbar-Johnson assured in metro Atlanta. “Like many other media companies, the black-and-white images shot by John Scarisbrick, the ads security will be at a maximum. — Natasha Montrose AJC faces unprecedented center on darkly enigmatic economic challenges,” said A spring Diesel ad. scenes such as an elderly THE MASTHEADS CONTINUE TO SHRINK: Condé Nast managers Robert W. Eickhoff, AJC senior foot fetishist worshipping have been forced to reevaluate their head counts this fall, vice president of operations. model Jon Kortajarena’s as each department has been asked to trim 5 percent of “We are committed to making Diesel high-top sneakers or a its staff, either by attrition or other means. As 2008 winds our operations as effi cient as ramshackle apartment fi lled down, some top employees at the bigger titles have exited, possible, and these changes with cats. Rock progeny but not all due to the 5 percent mandatory reductions. At support that goal.” Alexandra Richards makes Vanity Fair, three staffers were let go Tuesday; two in the The latest round of cuts a cameo in one of the ads, photo and research department, according to two sources. is the third since 2007. which were photographed at Senior articles editor Peter Newcomb was also let go but will The company said overall 1896 Studios in Brooklyn. continue as a contributing editor. Newcomb was one of the readership –— which is “There are no messages, last editors hired at the title two and a half years ago, and measured by readers rather themes or commentary to oversaw the magazine’s annual New Establishment list. “It’s than distributed copies understand,” explained not like I’m out of a job; it’s just an extrapolation of my old — would not be affected Diesel creative director job,” he said. Newcomb joined Vanity Fair after working for signifi cantly. The paper’s Wilbert Das of the hipster 20 years at Forbes. circulation fell to 274,999 in take on David Lynch. “Our At Vogue, Lisa Jordan Helms was let go last week. Helms a six-month period ending in objective is to intrigue and was hired in February as associate publisher/advertiser September, a 13.6 percent drop from a year ago, according provoke a thought.” As for fall, Das worked with Stockholm- when Tom Florio was elevated to a group publisher role to the Audit Bureau of Circulations. based ad agency FarFar on the new campaign. overseeing four Vogue properties — Vogue, Vogue Living, Cox Enterprises Inc., the $15 billion media fi rm that The cinematic quality of the ads is taken further on the Men’s Vogue and Teen Vogue. But with Vogue Living folded owns the Journal-Constitution, said next month it will merge Diesel Web site, where the scenes are turned into short and Men’s Vogue reduced to a twice a year special, that has its three media units to form a new company named Cox fi lms. Diesel declined to divulge the ad spend for the led to some contraction across the sales staff, and Helms’ Media Group, which will include Cox Newspapers, Cox campaign, but the Molvena, Italy-based company typically role became redundant. Vogue still has four ad directors Radio and Cox Television. It will operate 17 daily and 26 budgets 5 percent of sales for marketing annually, and overseeing different business categories, and Connie Anne non-daily newspapers, 15 television broadcast stations, 86 that has not changed, according to a spokesperson. From Phillips remains managing director. radio stations and more than 100 digital services associated January to September of this year, Diesel spent $5.8 Finally, GQ lost its director of special projects, Beth with these businesses. million on U.S. advertising, according to TNS Media Altschull, but her departure was based on a personal Cox in August reported other restructuring, including the Intelligence — David Lipke WWD, FRIDAY, DECEMBER 12, 2008 21 WWD.COM Financial For full daily stock changes, see WWD.com.

Urban Refl ects Overall Stock Declines 10 BEST PERFORMERS By Arnold J. Karr The discouraging words about retail weren’t relegated to publicly held play- DAILY COMPANIES P/E VOLUME AMT SHARES OF URBAN OUTFITTERS INC. ers. S&P downgraded Neiman Group fell more than 20 percent Thursday after Inc.’s credit rating one tick to “B-plus” HIGH LOW LAST %CHANGE the company revealed its November same- from “BB-minus” based on credit analyst store sales were fl at and could “further Diane Shand’s expectation that “credit decelerate” during the holiday season. measures will likely deteriorate more 0.43 0.30 Gottschalks (GOTT) - 50683 0.43 +40.98 The pessimistic assessment came in than we had originally projected as a re- a Securities and Exchange Commission sult of a deepening spending pullback by 0.27 0.21 Charles & Colvard (CTHR) - 25375 0.25 +18.93 10-Q fi ling on the fi rm’s third-quarter consumers.” The BB class is the highest results, which included a 9.9 percent in- speculative category on S&P’s scale. crease in comparable-store sales, led by S&P retail analyst Pearl Wang low- 0.93 0.79 LJ Intl. (JADE) 9.9 107273 0.93 +17.72 a 17.1 percent rise in comps at ered her rating of AnnTaylor Urban Outfi tters and gains Stores Corp. stock to “sell” 14.44 13.10 LaCrosse Footwear (BOOT) 10.7 2053 13.99 +13.74 of 1.8 percent and 3.9 per- from “hold” based on her cent at the Anthropologie expectations that the 0.25 0.17 Sport-Haley (SPOR) - 24763 0.25 +13.55 and Free People units, re- specialty retailer would spectively. The statement WWD be hurt by “rising unem- 0.13 0.10 Hartmarx (HTMX) - 129435 0.13 +13.04 contributed to a decline of ployment and higher sav- $3.88, or 20.6 percent, drop- ings level into ’09, and 1.95 1.70 Caché (CACH) 8.9 539728 1.90 +11.76 ping Urban’s shares to a increased bargains at tra- $14.98 close on a day when INDEX ditional high-end luxury the Standard & Poor’s retailers as they siphon 1.51 1.25 Bon-Ton (BONT) - 641967 1.31 +7.38 Retail Index suffered a 4.6 COMPOSITE off shoppers from lower- percent decline to 273.37. 706.21 priced stores.” The stock 3.76 3.00 Liz Claiborne (LIZ) - 5276539 3.22 +6.62 Uncertainty about the Big ended the day down 7.7 Three automakers’ bailout percent at $5.91. 31.24 27.50 Inditex * (ITX:MC) 15.0 5375314 30.52 +4.52 package’s chances of Senate A disappointing for- passage and continued dis- ward outlook contrib- couraging news about em- uted to large declines ployment lowered all three at Gildan Activewear, major indices on Thursday, off 35.1 percent to $9.19, 10 WORST PERFORMERS although none as much as and Lululemon Athletic the S&P Retail measure. Inc., down 32.3 percent to The Dow Jones Industrial -27.42 $7.08. The day’s sharpest DAILY COMPANIES P/E VOLUME AMT Average fell 2.2 percent to declines also included 8,565.09, the S&P 500 was a number of real estate HIGH LOW LAST %CHANGE down 2.9 percent to 873.59 investment trusts such as and the Nasdaq Composite Developers Diversifi ed Realty dropped 3.7 percent to 1,507.88. Corp. (20.1 percent to $5.04), Taubman 10.23 7.76 Gildan Activewear (GIL) 10.4 14471769 9.19 -35.14 Although Urban didn’t elaborate on Centers (18.8 percent to $24.31), its SEC fi ling, Sterne, Agee & Leach Glimcher Realty Trust (18.7 percent to 8.45 6.98 Lululemon (LULU) 17.1 4020006 7.08 -32.31 analyst Margaret Whitfi eld estimated $2.52) and Macerich Co. (18.3 percent that comps rose 7 to 8 percent at Urban to $11.81). Struggling General Growth 13.88 10.85 Hanesbrands (HBI) 8.7 4804938 11.01 -23.91 Outfitters stores and fell about the Properties Inc. was off 11.1 percent to same amount at Anthropologie, with $1.44, a fraction of its 52-week high of 3.05 3.05 Jaclyn (JCLY) - 199 3.05 -23.75 Free People “also likely negative.” The $47.89, but six times the corresponding retail calendar shift, which puts shop- low of 24 cents. ping days into December that last year Earlier in the day, Tokyo’s Nikkei 15.88 14.68 Urban Outfi tters (URBN) 15.2 17436290 14.98 -20.57 fell after Thanksgiving in November, 225 managed a 0.7 percent advance may help it recoup some business, to 8,720.55, while Hong Kong’s Hang 6.33 4.95 Developers Diversifi ed (DDR) 6.2 5982968 5.04 -20.13 she said, but “we note that they face Seng Index creeped up 0.2 percent to a tough 9 percent comp for the month 15,613.90. European stocks were mixed, 1.65 1.28 Quiksilver (ZQK) - 1292339 1.28 -19.50 and even tougher 11 percent comp” for with London’s FTSE 100 up 0.5 percent the fourth quarter. Last year, comps to 4,388.69 and the CAC 40 in Paris down 29.67 24.05 Taubman (TCO) 44.7 2313656 24.31 -18.75 at Anthropologie rose 16 percent in 0.4 percent to 3,306.13. December and 17 percent for the holi- Inditex Group staged a 4.5 percent 3.19 2.43 Glimcher (GRT) - 258816 2.52 -18.71 day season, while Urban’s were up 4 rally after the Spanish fi rm reported a percent and 5 percent, respectively. 1 percent advance in net income for the “While [the company] is clearly not third quarter. 14.25 11.57 Macerich (MAC) 6.7 4549675 11.81 -18.27 immune to the current macro-environ- Among the stores and suppliers en- ment, we have been very impressed with joying up days despite a down market * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the management’s ability to react quickly were Gottschalks Inc. (up 41 percent to London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs to current trends and manage the busi- 43 cents), Hartmarx Corp. (13 percent and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. ness accordingly,” the analyst wrote in a to 13 cents), Caché Inc. (11.8 percent to research note in which she maintained $1.90), The Bon-Ton Stores Inc. (7.4 per- her “buy” rating on shares, but lowered cent to $1.31) and Liz Claiborne Inc. (6.6 her price target to $24 from $31. percent to $3.22). Gildan Posts Lower Net, Predicts Tough ’09 SHARES OF GILDAN ACTIVEWEAR share, excluding restructuring charges, Inc. dropped 35 percent Thursday after well below the $1.86 consensus estimate. the firm said fourth-quarter profits were Analysts had expected fi rst-quarter EPS Harry Winston Firm Sees Profi t in 3rd Qtr. almost cut in half and provided gloomy of 27 cents, but Gildan said it now expect- By Matthew Lynch versus its U.S. counterpart. assessments for earnings, revenues and ed to fi nish the period with EPS between On a conference call with investors, margins in the new year. 0 cents and 5 cents. Although Gildan con- THE RETAIL SEGMENT OF HARRY chairman and chief executive offi cer In the three months ended Oct. 5, net in- tinued to build market share in October, Winston Diamond Corp. posted a larger Robert Gannicott said the diamond in- come fell 47.6 percent to $21.4 million, or its unit shipments to distributors fell. loss in the third quarter, but the firm, dustry is struggling to “comprehend the 18 cents a diluted share, from $40.9 million, “The company’s current planning sce- helped by a surging U.S. dollar, reversed a effects of credit constraint and general or 34 cents, in last year’s quarter. Excluding nario for fi scal 2009 assumes that over- year-ago loss to post a profit in the period. global economic conditions.” a one-time income tax charge refl ecting a all industry unit shipments in the U.S. For the quarter ended Oct. 31, the For the fi rst nine months of the year, fi nal agreement with the Canada Revenue screen-print channel will decline by ap- Toronto-based fi rm’s retail operations the company’s retail business narrowed Agency after an audit, EPS was 41 cents, 2 proximately 10 percent compared with recorded an operating loss of $4 million, its operating loss to $519,000 from $1.5 cents lower than analysts expected. fi scal 2008,” the fi rm said, “and that the higher than the $3.6 million loss in the million last year. Retail sales in the nine Boosted by its acquisition of hosiery man- ensuing unfavorable industry supply- year-ago period. Retail sales in the three months increased 18.3 percent to $213.7 ufacturer V.I. Prewett & Son Inc., a rise of demand balance will result in signifi cant months increased 7.7 percent to $57.9 million from $180.6 million. 10.2 percent in activewear unit selling prices discounting of industry selling prices, million from $53.8 million last year. The recent robbery of one of the and an 8.5 percent increase in unit volume which has already started to occur.” The company’s consolidated opera- fi rm’s Paris showrooms, in which armed for activewear and underwear, quarterly Gildan’s shares closed at $9.19, down tions, which include its mining business, thieves made off with more than $100 sales were up 27.4 percent to $324.7 million from $14.17 in New York Stock Exchange posted third-quarter net income of $71.9 million worth of merchandise, occurred from $254.9 million. Gross margin slid to 32.1 trading Thursday. Although based in million, or $1.17 a diluted share, com- after the third quarter ended. The com- percent of sales from 32.2 percent. Montreal, Gildan reports its results in pared with a net loss of $7.4 million, or pany said the losses were insured. Investors, however, were more alarmed U.S. dollars. 13 cents a share, a year ago. The earn- The company’s shares rose 12 cents, by the fi rm’s guidance and outlook for fi s- Capital expenditures for 2009 are now ings included a foreign exchange gain or 2.5 percent, to close at $4.85 in cal 2009 than by the fi nal results of 2008. projected at $115 million versus a previ- of $49 million, or 80 cents a share, due Thursday’s New York Stock Exchange The company initiated earnings guidance ous estimate of $160 million. to the weakening of the Canadian dollar session. for the year of between $1.10 and $1.30 a — A.J.K. 22 WWD, FRIDAY, DECEMBER 12, 2008 WWD.COM Lululemon Cuts Guidance, Shares Dive FASHION SCOOPS FADE OUT?: Could Hollywould be out of business? The brand, founded By Whitney Beckett about 35 new retail stores a year. by creative director Holly Dunlap, has been looking for a buyer since “We have fi ve leases signed for stores in fi s- October, when its parent, Kellwood Co., put the company up for DESPITE HIGHER THIRD-QUARTER EARNINGS cal 2009, and we will grow opportunistically only sale. But speculation has been swirling that the wholesale brand has and sales, Lululemon Athletica Inc. revised its when we see landlords start to refl ect the reality quietly gone out of business, with no potential buyers in sight. After a full-year guidance downward on Thursday, trig- of a new world in their leases,” Day said. storewide clearance sale at its shop at 198 Elizabeth Street on Monday gering a 32 percent decline in its share price. Lululemon is resisting the promotional activity, — shoes were marked down to $49 — it appeared on Thursday that the The Vancouver-based yogawear fi rm lowered its even if it hurts sales in the short run. store had closed for good. The shop was gated, with no merchandise full-year earnings forecast to 55 cents to 57 cents a di- “We’ve realized that guests have more options in the window, and the phone was disconnected. Hollywould was said luted share from 68 cents to 71 cents. The company’s with the heavy promotional environment else- to be moving into a new, 1,200-square-foot space at 16 Prince Street, stock closed at $7.08, down $3.38 in Nasdaq trading. where,” Day said. “We plan to react, but in our own at the corner of Elizabeth Street, in early 2009. Repeated e-mails “Like most retailers, we have experienced de- unique and entrepreneurial way that is consistent to Dunlap were not answered, and her private offi ce line has been celerating trends beginning in October that con- with the value and exclusivity of Lululemon….What disconnected, with no further information available. The brand’s Web tinued through November and are expected to you won’t see us do in a promotional strategy is put, site, hollywould.com, has stopped selling product online. A Kellwood persist,” chief execu- you know, 60-percent- spokeswoman e-mailed a statement saying, “We are still in the tive offi cer Christine off sale tags in our win- process of exploring a range of strategic alternatives for the Hollywould Day said on an earn- We plan to react, but in our own dow. That’s really what business.” Dunlap launched Hollywould in 2000 as a contemporary ings call. “Our comps we’ve tried to stay footwear fi rm. After gathering a loyal following, she introduced more turned negative in “unique and entrepreneurial way. away from since the products, including dresses and handbags before being acquired by November, proving beginning of the con- Kellwood in December 2006. they are not immune — Christine Day, Lululemon Athletica” Inc. ception of the brand to the squeeze on even through these BRANCHING OUT: An array of international fashion designers took a consumer spending challenging times.” break from humans and and heavy promotional environment today.” Day also made a case for the company’s dressed Christmas trees Jean Paul Gaultier Lululemon blamed the weak Canadian dollar strengths. She cited Lululemon’s ability to “pro- instead, unveiling their with his tree. and general economic outlook for its revised guid- vide functional and technical product that is sea- creations Tuesday night at ance. The company said business will be challeng- sonless in nature, which helps us to mitigate the Paris’ architecture museum, ing for at least the next six to 12 months. inventory issues and fashion risks inherent in in aid of a children’s charity. However, in the third quarter ended Nov. 2, most other apparel businesses.” “It’s like a Sixties chair,” Jean earnings climbed 17 percent to $8.8 million, or Lululemon has sought greater fl exibility “with Paul Gaultier said of his tree, 13 cents a diluted share, from $7.6 million, or 11 our open-to-buy close to Christmas” by delaying inspired by his signature striped cents in the year-ago period. Sales increased 34 purchases for its e-commerce launch, Day said. marine sweaters. While hard at percent to $87.0 million from $64.9 million. “More than 90 percent of the items in our store work on his new children’s line For the fi rst nine months of the fi scal year, are at price points below $100,” she said, provid- out next year and a perfume earnings gained 76 percent to $28.4 million, or ing good value for a product that is made to be launch, Gaultier said he’s 40 cents a diluted share, from $16.1 million, or 23 “worn through multiple seasons and to transition looking forward to Christmas. cents, in the same period the previous year. Sales easily from gym to street.” “I want another cat,” he said. so far this year increased 50 percent to $249.6 mil- In addition, she said the company should be Meanwhile, Jean-Charles de lion from $166 million. helped by the health and wellness trend that has Castelbajac unveiled plans Lululemon is pulling back on its plan to roll out held up during the recession. to introduce a jeans line, another for teenagers as well as housewares as his company marks its 40th anniversary. “Long-term, I would like to Inditex Net Creeps Ahead, Sales Rise 11% combine everything: clothes, music and my art by opening DOMINIQUE MAITRE PHOTO BY By Robert Murphy something we think is remarkable considering the a boutique hotel,” he added. Spanish eco-designer Miguel Androver, global evolution of the Spanish market, which is dressed like a monk, was in town to unveil his organic tree made from PARIS — Inditex, the Spanish retailer that runs the decreasing [as a whole].” wood and partially draped in gray alpaca. “I am off to Abu Dhabi Zara chain, said net income in the third quarter For the nine months, Inditex said net income where I am in talks to do an exhibition,” he said. The evening ended advanced 1 percent to 437 million euros, or $567.5 increased 2 percent to 843 million euros, or $1.09 with a triumphant bid of 46,000 euros, or $59,340, for Zaha Hadid’s million, below most analysts’ estimates. billion. Net sales in the nine months grew 11 per- conceptual treelike structure. The fi rm, which also runs the Pull and Bear, cent to 7.35 billion euros, or $9.54 billion. Stradivarius, Massimo Dutti and Oysho chains, said Inditex said it operated 4,147 stores at the end DOLCE VITA: The economy may be melting down, but at least ladies Thursday that sales in the quarter grew 11 percent of October. During the quarter, notable openings looking for deals on Rodeo Drive are in luck. With markdowns in nearly to 2.79 billion euros, or $3.62 billion, as business included a Zara store in Ginza, Tokyo, as well the every boutique from Chanel to Michael Kors to Bottega Veneta, Dolce & contracted in the slowing Spanish economy. fi rst Zara store in Montenegro. Gabbana wasn’t about to miss an opportunity, besting the competition Pablo Isla, Inditex deputy chairman and chief Isla said growth in Russia remained strong and by snagging Crystal Lourd, Jamie Tisch and Jennifer Meyer Maguire to host executive offi cer, said sales growth in the quarter that the chain had doubled the number of stores a holiday shopping party, where women like Shiva Rose, Julie Jaffe, Jane remained “positive” in Spain. Isla said sales in in the country since the beginning of the year. Ross, Sophie de Rakoff and Colleen Bell got 30 to 50 percent off party the fi rst six weeks of the fourth quarter grew at a He said Inditex was “very satisfi ed” with the frocks for the upcoming awards season swirl. Meyer Maguire, whose pace similar to that of the third quarter. reception of its new accessories chain, Uterqüe. second baby with husband Tobey is due in May, found a little black “We are satisfi ed with the results, which were “We have opened 24 Uterqüe stores since last dress to wear over her bump, telling friends that she and Maguire were achieved against high comparables in a challeng- July and the results are above our initial expecta- up early to congratulate pal Kevin Connelly, who just nabbed a best actor ing business environment,” said Isla. tions,” said Isla, adding Inditex would continue to Golden Globe nomination for “Entourage.” “I told him, ‘You’re giving us “There are markets above the average,” said grow the chain next year. an excuse to go out and celebrate,’” she said. Meanwhile Lourd tried on Isla, singling out Eastern Europe and Asia. “In Shares in Inditex closed up 4.5 percent to 30.52 euros, options for Tisch’s Saks-sponsored Unforgettable Evening, which takes Spain, our total sales remain positive, which is or $40.28, in trading on the Madrid stock exchange. place on Feb. 10.

ZOOLANDER: Life’s a zoo for Lanvin’s Alber Elbaz — or for the holiday period at least. Thursday night, the designer and window dresser Incotex Introduces Lower-Priced Line extraordinaire, sporting a silk scarf sling for a minor arm injury, was spotted putting the fi nishing tweaks on the Christmas window displays at INCOTEX IS CHASING THE LUXURY MARKET swing. Compagno pointed to Paul Smith and Etro Lanvin’s Paris fl agship on the Faubourg Saint-Honoré. Framed by strings downhill with its new ivory label, a collection of as resources that offer solid contemporary dress of colored bulbs, an orange- trimmer, less-expensive wool and cotton pants. pants on the collections side. Vertical retailers wigged-and-eyelashed plastic Incotex is known as the Rolls-Royce of the trou- such as Club Monaco, Banana Republic and H&M For more, kangaroo occupies one window, ser classifi cation business with pants that start at also have made trim tailored clothing, including draped in Lanvin necklaces and $345 and a tight wholesale network of high-end trousers, a priority in their assortments. see WWD.com. bags ahoy, while a mannequin specialty and department stores. But the trouser classifi cation in department next door sprawls across the But parent company Slowear, the Venetian- stores — marked by voluminous, pleated pants back of a stuffed tiger, its glassy based enterprise owned by Marzio and Roberto and traditional patterns — is ripe for an update. stare greeting window-shoppers. Compagno, hopes to tap growing demand for slim- “We make dad’s pants, historically,” Compagno. “My team has been working on mer-fi tting dress pants — a market that he said is “Now we want to make the son’s.” this all day, and then my role is overlooked. Available in American and the more-European to come in and un-perfect what “Collections speak to the younger man, but trim fi t, the ivory line will consist of dress wools, dress is perfect,” said Elbaz, striking a their fi t changes constantly,” Marzio Compagno cottons and casual cottons that will open at $245. The pose with a parrot before moving said at the company’s Manhattan showroom this line will launch in the fall exclusively in the U.S. to another window. “Stuffed week. “But we want to offer a product that will be Incotex’s new venture might be closely watched animals, toy animals, Christmas consistent, reliable and more price sensitive.” by other luxury brands, whose businesses have trees — anything goes. I love The ivory label will be produced in Portugal slumped as consumers limit spending. The ivory to see the kids — not just and will share sartorial details with the company’s label remains pricy, but, at $100 less than the heri- the fashionistas — admiring signature, high-end heritage line, including skirted tage line, will open the brand to new, larger retail the windows,” he continued, waists. The model, however, will be trimmer with accounts such as Nordstrom and Bloomingdale’s. patting the rear end of a giant a thinner waist, higher rise and more narrow leg. The heritage line is carried at Saks Fifth Avenue, toy elephant, the chef d’oeuvre The construction in the waistband will be softer. Neiman Marcus and a few better specialty stores. that fi lls the main window with The trouser classifi cation has long awaited the “This is an opportunity for us to reach more her calf, both festooned with return of the younger consumer to its classic, if people,” Compagno said. ▲ Alber Elbaz posing with a plastic feather boas, pearl strands and fusty, aisles. And trousers appear to be on an up- — Brenner Thomas kangaroo in one of Lanvin’s windows. Lanvin sparklers. WWD, FRIDAY, DECEMBER 12, 2008 23 WWD.COM Mike & Chris Inks Deal With Green Mochi Mulberry Warns but Not Cutting Back By Khanh T.L. Tran By Samantha Conti um-term loan last February. Davis added that, going forward, the company would LOS ANGELES — Mike & Chris, a contemporary brand that helped transform the casual LONDON — Accessories brand Mulberry be facing the “adverse trend” of the weak- hoodie into an edgy fashion item, hopes to weather the recession without sacrificing Group plc is responding to tough times ening pound versus the dollar and euro. design through a licensing agreement with Green Mochi LLC. with old-fashioned British grit and forg- For the six months to Sept. 30, Effective immediately, the deal allows Mike & Chris co-found er and designer Mike ing ahead with planned investments in Mulberry’s profi ts rose 9.6 percent to Gonzalez to focus on design. Green Mochi, which holds equal partnerships in contem- marketing and retail. 893,000 pounds, or $1.7 million, from porary label Twelfth Street by Cynthia Vincent and A.L.C., the fashion line launched On Thursday, the company issued a 815,000 pounds, or $1.6 million. Sales for next spring by celebrity stylist Andrea Lieberman, oversees Mike & Chris’ produc- profi t warning for the fi scal year ending rose 29.3 percent to 27.8 million pounds, tion, invoices and shipments. March 31, but said planned investments or $53.7 million, from 21.5 million “Not only is it effi cient on a business level, I will be able to really, really spend 100 would not be scrapped or reduced. pounds, or $53.7 million, in the period. percent of my time on the creative between the design process, the development of Chairman and chief executive Godfrey The statement said U.K. store sales in- each collection and fi ne-tuning it,” said Gonzalez, a former fashion photographer. Davis said Mulberry would still spend creased 21 percent. Mike & Chris is the latest contemporary label to resort to a licensing model 8 percent of total sales, about 5 million Sales were strong until mid-Sep- in the challenging economy. Modern Amusement, the Santa Monica, Calif.-based pounds, or $9.7 million, on marketing. tember, Davis said, when there was a sportswear line owned by Mossimo Giannulli, said last month that it granted a All fi gures have been converted at av- “marked change in climate” after the fi ve-year master license to Costa Mesa, Calif.-based Blk Brd LLC for all apparel erage exchange rates for the six-month collapse of Lehman Brothers. and accessories. period to Sept. 30. The slowdown continued into the fall: Founded in Los Angeles by Gonzalez and his wife, Christine Park-Gonzalez, Mike & “We are building this brand for the In the 10 weeks to Dec. 6, overall retail Chris began making its mark three years ago with hoodies spruced up in lightweight long term, and have no plans to re- sales in Mulberry’s U.K. stores were lambskin, softly weathered fl eece and design details ranging from military epaulets to trench,” he told WWD. “We have a strong down by 1 percent. oversize buttons. balance sheet, a good customer base, Stripping out the positive impact of After breaking into the men’s market last year, the brand expanded its women’s port- and we will be looking for good deals new stores, U.K. retail sales were down folio with sanded silk charmeuse dresses and denim bell-bottoms. The line also parlayed and any opportunities that may arise 12 percent. its experience with leather into handbags, launched in 2006, and shoes, introduced this during the next months.” However, the company said spring fall. With wholesale prices ranging from $86 to $410, Mike & Chris rang up $13 million Davis added the company had no wholesale order books are ahead 15 per- in sales this year through retailers such as Barneys Co-op, Saks Fifth Avenue, Bergdorf plans to reduce the price of its merchan- cent due to increased market penetra- Goodman, Harvey Nichols, Holt Renfrew, Isetan, Intermix and Ron Herman. dise in response to the credit crunch. tion and new shop openings worldwide. Los Angeles-based Green Mochi, which has 45 employees, posted sales of $14.5 mil- The statement said year-end profits This fall, the brand opened at London’s lion this year. As part of the deal, Mike & Chris will consolidate its New York and Los would be below last year’s fi gure of 3.4 Westfi eld mall and unveiled its fi rst free- Angeles showrooms with Twelfth Street’s. Green Mochi chief executive offi cer Armen million pounds, or $6.6 million, due to the standing unit in the Middle East at the Gregorian said he also plans to consolidate shipping, factoring, warehouse, invoicing slowdown in consumer demand and to the new Dubai Mall. Later this month, it and any operation that isn’t related to Mike & Chris’ design. company’s strategy of investing in product plans to open a store in Athens. It plans “What that does is spread the fi xed costs over the base,” Gregorian said. “It re- development and international marketing. to open units in malls in Jeddah, Saudi duces it by half for the entire company. We can endure the problems of 2009 and not The company also stressed it has zero Arabia, Kuwait City and Doha, Qatar, in be affected.” debt following the repayment of a medi- the spring.

WWD.COM/CLASSIFIEDS

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SALES REP PATTERNS, SAMPLES, Scrubs and school uniform company PRODUCTIONS looking for sales rep in all territories. Full service shop to the trade. Must be self motivated and have at EXCESS INVENTORY BUYER Fine fast work. 212-869-2699. least 5 yrs experience w/ major accounts. Immediate Cash/No Inventory Too Large Great commission and bonuses. No Hassle/Integrity Driven/Closeouts Needed DENIM SALES EXECUTIVE - Juniors Est’d men’s denim line is expanding to Email all resumes and inquires to: 901-338-6364 www.fusioninternational.net DIRECTOR, CLARINS FRAGRANCE GROUP [email protected] [email protected] Jrs mrkt & seeks exec for sales to mid- tier & chains. Salary DOE + comm. 3 Clarins, America’s fastest growing cosmetics company is seeking an yrs sales exp in Jr’s denim. Must travel. SALES REPS Area Sales Director for our Clarins Fragrance Group. Based in Dallas, [email protected] NY based Contemp Women’s apparel Texas, the Area Sales Director will establish CFG as a top selling brand in manuf seeks exp and aggressive comm each account, correctly utilizing the resources of the organization. The based sales Reps. Must have est’d rel Spaces SALESPERSON with Upscale Chain Stores and Catalog ASD is responsible for the management of Headquarter and Regional Ac- companies. [email protected] Seeking salesperson for established Call: 914-479-7185 count Managers. This position is accountable for projecting & meeting re- textile fabric agency. NOT GARMENT. quired financial goals while maintaining budgetary requirements. Negotia- Cutter Min 1-2 years exper. Salary & benefits. Email resume to [email protected] COMMERCIAL PROFFESSIONAL CUTTER tions w/ retailer regarding stock levels, space & location, & co-op demo SALES REP Wanted For Couture Workroom & fiscal opportunities, implementation of promotional & merchandising WITH ESTABLISHED SHOWROOM REAL ESTATE programs w/ the retailer to achieve sell-thru goals, administrative respon- Established European Brand seeks Full time cutter position with benefits. motivated Reps for Designer Denim line. Must be familiar with working with all sibilities including trade relations, & awareness of the competition, while Reps needed in all major markets. Email fabrications. Experience with matching maintaining integrity, image, & philosophy of the company, & communi- resume: [email protected] prints, embroideries, size grading and creating markers a must. Fax resume: cating progress & results to company management. Search 212-764-3816 / [email protected] This senior manager candidate will possess 10+ yrs exp in retailing, serv- hundreds of SALES/SALES MGR Showrooms & Lofts Graphic Designer icing & executive sales. Must have excellent rapport w/retailers in any given mar- Bridesmaid/Formal/Prom mfr looking BWAY 7TH AVE SIDE STREETS Apparel Co. seeks talented highly exp ket. positions in for experienced & aggressive salesper- Great ’New’ Office Space Avail graphic designer w/ skills developing son. Responsibilities include show- ADAMS & CO. 212-679-5500 flat sketches, graphics, prints, & rack room sales and managing sales force. presentations for boys and/or girls active We offer competitive salaries & comprehensive benefits. Please send fashion, retail Must be able to open new accounts. Email resumes to [email protected] & sportswear. Strong PC, Illustrator & your resume, cover letter, & salary reqs to [email protected], or fax Photoshop a must. Email resume to: 866.567.4149 and beauty. [email protected] to . Visit our website at www.Clarinsusa.com. EEO HEAD PATTERNMAKER For womans wear company. Responsibili- ties include being in charge of production & having strong comm w/ factory. Knowl- edge of computerized pattern-making a Men’s/Women’s Apparel Sales TECH DESIGNER PATTERN/SAMPLES must. Email: [email protected] Well financed men’s & women’s im- Jr. Company looking for a Technical Garment center location. Professional porter, in business 18 yrs, looking for Designer who will have the responsibility /Reliable Quality. Men & women all style. salaried/Comm. salesperson w/ strong for first development specs , artwork, Line Offered Reps WTD. Low Cost. Small production. 212-563-3331 contacts to major retailers, or have or- spec sheets with details and prodution tech packs. Knowledge of Garment With difficult times, comes opportunity ders in hand & looking for well financed NEW made in US, bridge-priced knit- co. to produce. Contact: 212-764-1777 Construction. Illustrator and Adobe a knowledge a MUST full benefits, Great wear line seeks select group of ind. PATTERNS, SAMPLES, [email protected] sales reps (% only) w/est. relatonships ricky @ cactusclothing.com Company . Please send your resumes PRODUCTIONS only to: [email protected] w/ boutiques, specialty and dept stores All lines, Any styles. Fine Fast Service. to join our team and grow our brand. Call Sherry 212-719-0622. Reply: [email protected] 21928JC_WWD.indd 1 12/8/08 3:50:50PM

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