TIFFANY NET DIPS/2 WEXNERS’ $125M SHARE SALE/11 Women’s Wear Daily • The Retailers’ Daily Newspaper • September 1, 2006 • $2.00

▲ Clinique’s Full Potential Lips. Page 5. WWDFRIDAY Beauty Maiden Voyage MILAN — With their fi rst fragrance under a new license with Procter & Gamble, Domenico Dolce and Stefano Gabbana are aiming to write a new rule book for their beauty business. The One, a women’s scent, will launch in Europe in October and in the U.S. in January. For more, see page 4.

Agon’s Debut: L’Oréal CEO Starts Strong With 21.9% Leap in Net By Jennifer Weil expectations, when it reported a products and the positive impact PARIS — Jean-Paul Agon, L’Oréal’s 21.9 percent spike in net profits to of currency fluctuations, makes it newly minted chief executive 1.09 billion euros, or $1.34 billion at look highly likely that the French Y MEGAN MCINTYRE officer, presided over his first average exchange, for the first half beauty giant will hit double-digit corporate financial analyst of this year. earnings-per-share gains for 2006. meeting Thursday with a flourish. The strong performance, due to Operating profits for the The company exceeded market cost-control efforts, added-value See L’Oréal, Page 9 PHOTO BY PAVEL ANTONOV; STYLED B ANTONOV; PAVEL PHOTO BY 2 WWD, FRIDAY, SEPTEMBER 1, 2006 WWD.COM Tiffany Earnings Slip in 2Q By Arthur Zaczkiewicz WWDFRIDAY NEW YORK — Despite strong Beauty sales, Tiffany & Co. said Thursday that second-quarter earnings dropped because of a BEAUTY Jean-Paul Agon, L’Oréal’s new chief executive offi cer, cited the fi rm’s $6.6 million tax benefi t in the previous year. 1 strong performance at its fi nancial analyst meeting Thursday. Results also were pulled down by softer sales in Japan as GENERAL well as higher product costs. But Despite strong sales, Tiffany’s second-quarter earnings were impacted the New York-based purveyor of 2 by higher product costs and softer sales in Japan. fi ne jewelry and other luxury goods vowed that it would de- August same-store sales were marginally above expectations, with liver a higher growth rate in the 10 cash-strapped consumers hunting for bargains. long term. Management said on Tesco, the U.K.’s leading food retailer, has launched a higher-end, 30- a conference call with analysts 11 piece apparel collection for women and men. that the company is on track to grow total square footage by 7 As part of its international expansion drive, Brooks Bros. has opened percent this year. Tiffany and Co.’s New 13 two European fl agships in London and Paris. “Our ongoing plans for store York fl agship. openings and new product intro- Classifi ed Advertisements...... 15 ductions sustain our confi dence ence call that the company $35.7 million. International sales To e-mail reporters and editors at WWD, the address is fi rstname. in Tiffany’s ability to achieve is optimistic “about Tiffany’s climbed 10 percent to $223.2 mil- higher rates of growth over prospects for 2006 and beyond. lion while sales in the U.S. rose [email protected], using the individual’s name. the long term,” said Michael J. We certainly acknowledge that 8 percent to $288.6 million, and WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Kowalski, chairman and chief there are various economic “other” sales increased 4 per- VOLUME 192, NO. 45. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one ad- executive offi cer. uncertainties and geopolitical cent to $27.4 million. ditional issue in January and November, two additional issues in March, May, June, August and December, and three ad- For the quarter ended July anxieties. However, we remain “Growth was seen across a ditional issues in February, April, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers 31, net earnings fell to $41.1 mil- convinced there are increasing range of product categories, Inc.: S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and lion, or 29 cents a diluted share, numbers of discerning consum- with diamond jewelry main- C.O.O.; Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; from $50.5 million, or 35 cents, ers seeking the extraordinary taining a prominent role in the David Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice President_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance in the previous year on sales product that we offer.” growth from high-end diamond Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. that climbed 9 percent to $574.9 Citing “the opportunity to ex- jewelry to diamond engagement Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. million from $526.7 million. pand Tiffany’s market penetra- rings to new diamond and plati- 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RT0001. Canada post return undeliverable “Comparable-store sales in tion by entering many new mar- num pendants,” Mark Aaron, Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, August to date include a re- kets,” Fernandez added that, in vice president of investor rela- ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR turn to midsingle-digit growth 2006, “we are increasing Tiffany tions, said on the call. DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four in the U.S., double-digit growth worldwide square footage by “We’re also pleased with con- weeks is required for change of address. Please give both new and old address as printed on most recent label. Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other in many international markets approximately 7 percent, which tinued favorable response to U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. and a high-single-digit decline is slightly above our midsingle- some of Tiffany’s other relative- First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, in Japan,” Kowalski said in a digit growth strategy.” ly new fi ne jewelry collections, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To statement. “For this [current] Regarding second-quarter such as the Swing and Legacy subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make third quarter, we are looking results, Fernandez said the collection,” Aaron said. “Our our subscriber list available to carefully screened companies that offer products and services that we believe would for a midsingle-digit increase in gross margin rate dropped to Celebration ring initiative con- interest our readers. If you do not want to receive these offers and/or information by mail and/or e-mail, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. earnings before income taxes, 55.1 percent from 55.5 percent tinues to be very successful and WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANU- and net earnings approximately in the previous year as a result has become an important base SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPAR- equal to last year’s 16 cents per of higher product costs. “We’ve of our business. There was also ENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, diluted share, which had benefi t- been affected by higher costs growth in silver and gold jew- OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED ed from a lower effective tax rate for precious metals, but as ap- elry highlighted by the popular due to favorable reserve adjust- propriate are addressing cost 1837 and Atlas collection. Sales ments related to the expiration pressures through retail price also rose in the designer jewelry of certain statutory periods.” adjustments,” he explained. category, including Elsa Peretti Kowalski said full-year earn- “Higher costs are affecting the and Paloma Picasso.” Quote of the Week ings for the current fi scal year entire industry, and, while it is Regarding the Frank Gehry are pegged to show a “low-dou- diffi cult to quantify any custom- jewelry designs, Aaron said even ble-digit increase in earnings er resistance to higher prices, though the product was only in- before income taxes,” with net we believe that Tiffany is main- troduced into “one-third of our This is the land of Norman Norell and earnings ranging from $1.77 to taining its competitive position stores at the end of the second “ $1.82 a share. and value proposition.” quarter, it’s far exceeding our Levi Strauss. My attitude was, why not James Fernandez, executive By region and business seg- expectations, and we will com- vice president and chief fi nan- ment, direct marketing sales plete the store rollout in the mix it up? cial offi cer, said on the confer- clocked an 18 percent gain to third quarter.” — Michael’’ Kors on his lifestyle concept boutiques. VF Shuffl es International Management Team In Brief

By Ross Tucker enue, or $1.6 billion in 2005, up from 19 percent ● JONES TAPS MAK: Jones Apparel Group Inc. has appointed of total revenue fi ve years ago. That growth, said Anliza Mak as president of Jones International Ltd., effective NEW YORK — VF Corp. has reorganized the ranks Wiseman, has stemmed from growth in core busi- Oct. 27. Mak will head the Hong Kong offi ce, which is a liai- of its international management team with an eye nesses such as Lee and Wrangler, as well as from son for production quality control for its wholesale apparel toward boosting revenues in Europe and develop- the many brands VF has acquired over the last brands. Mak was actively involved in the formation of Jones ing markets. two years. International Ltd., where she has been second in command. The Greensboro, N.C.-based apparel giant has “Kipling and Napapijri were European busi- She succeeds Sam Tang, who is joining another company, ac- appointed Karl Heinz Salzburger, 49, to the newly nesses. On top of that, we acquired companies cording to Efthimios Sotos, chief fi nancial offi cer of Jones created post of president of Europe, Middle East, like Vans, which at the time of the acquisition Apparel Group, who declined to comment on where he was Africa and Asia. Salzburger will maintain his re- was doing one-third of its business internation- going. Sotos said Mak’s replacement has yet to be decided. In sponsibility for the company’s outdoor segment ally,” said Wiseman. “Now they’re integrated her new post, Mak will report to Lynne Cote, chief executive and will take on oversight of the jeanswear busi- and we have our arms around them. It’s time to offi cer of wholesale sportswear, suits and dresses. ness. Salzburger also will be charged with in- put a structure in place that lets you accelerate creasing the international segment’s contribution growth.” ● BURANI DEVELOPMENTS: LVMH Moët Hennessy Louis to overall revenues. The presidents of VF’s inter- Management is now looking for international Vuitton’s investment fund L Capital is about to cut its stake in national jeanswear, outdoor, action sports and business to account for 30 percent of overall rev- Mariella Burani Fashion Group SpA. Milan-based merchant sportswear segments will report to Salzburger, enues within three to fi ve years. India, China and bank Tamburi Investment Partners said it has agreed to buy who is based in Lugano, Switzerland. Russia fi gure prominently in Salzburger’s plans. 3.2 percent of MBFG from L Capital for 17.16 million euros, Salzburger has been president of the company’s “These markets have growing middle classes or $21.96 million at current exchange rates. That price values international outdoor division since 2001, respon- with an accelerating demand for lifestyle brands,” MBFG at 538.4 million euros, or $689.1 million. L Capital will re- sible for overseeing brands such as The North said Salzburger in a statement. tain a 2.8 percent stake in MBFG. The deal is expected to close Face, Vans, JanSport, Reef and Nautica. He joined Wiseman said establishing “brand foundations” Monday. “MBFG represents one of the most valid and dynamic VF in 1997 from Benetton Sportsystem SpA. rather than achieving exponential growth is the groups [in Italy],” Tamburi said in a statement. L Capital, which Eric Wiseman, president and chief operating short-term goal for developing markets. just bought control of Italian fashion company Piazza Sempione, offi cer of VF, characterized the reorganization “Right now we have to do the good work of lay- first invested in MBFG back in 2003 when it bought a 30 percent as a strategy designed to build on the momentum ing down the right infrastructure so that in fi ve stake of MBFG’s leather goods subsidiary Antichi Pellettieri. L of the company’s international business, which to 10 years, we’re well positioned to have larger Capital later converted that stake into MBFG shares. has grown to account for 25 percent of total rev- growth,” he said. © 2006 Estée Lauder Inc. Shop now at esteelauder.com Shop now

I live for moments like this. 4 WWD, FRIDAY, SEPTEMBER 1, 2006 The Beauty Report After a Fashion: Dolce & Gabbana’s ‘The One’ By Stephanie Epiro she handles herself. What sort of men and women Stefano would like the fragrance. It’s like telling the story of MILAN — With a new license under their belt and Gabbana a person’s life,” said Gabbana. a brand-new women’s scent on the way, designers and According to Markus Strobel, vice president of Domenico Dolce and Stefano Gabbana are determined Domenico P&G Prestige Products, The One represents modern- to write a new chapter for their fragrance business. Dolce day Dolce & Gabbana. In an interview with WWD The designers inked a license with Procter & during men’s fashion week in Milan, Strobel stated Gamble Prestige Products in December, which took that the fragrance would be a new pillar for which PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY effect in July. This new scent — called The One — the brand’s future portfolio could be expanded on. christens the deal, according to Gabbana. “What we wanted to do with The One is create “The One is completely diverse to everything we a signature fragrance for the Dolce & Gabbana of have done before,” said Gabbana in an exclusive in- today and tomorrow. Light Blue is a simple, easy ac- terview here, comparing The One to such past hits cessible proposition — that’s why it sells really well. as Light Blue and Pour Homme. “We’ve never done For this fragrance, we wanted to have something a fruity fragrance, and above all, we’ve never done that’s a bit more aspirational, but at the same time a fragrance that’s not season-oriented — the only something that is commercial that will sell lots of other one that is without season is Light Blue. When product, and represent the new luxury of Dolce & I worked on The One with the noses, I really con- Gabbana,” said Strobel. centrated on creating a fragrance that didn’t have a To push sales, a television advertising campaign season, that can be worn in winter and summer.” has been fi lmed depicting model Gisele Bündchen Gabbana said The One’s launch was like a new getting prepared backstage for a fashion show, while chapter in the brand’s history after parting ways photographers clamor to take her picture near a mir- with Italian fragrance licensee Euroitalia, which ror. British hairstylist Sam McKnight, who is an am- had held Dolce & Gabbana’s fragrance license since bassador for P&G’s Pantene brand, is seen adjusting 1992. The motive behind the collaboration with P&G Bündchen’s hair. Strobel said although details weren’t Prestige Products, said Gabbana, was size. confi rmed, the television advertising campaign would “We want to grow more — that’s the reason why we be screened in the world’s top 10 fragrance markets. changed [from license holder Euroitalia to P&G]. We A print campaign, which shows a profile of want to make more products, and have a better pene- Bündchen in a pair of dark sunglasses, will also be tration into the market, with stronger and broader dis- launched in up to 20 select markets. Both campaigns tribution,” said Gabbana. “We work very well together. were shot by French photographer Jean-Baptiste It’s a direct tight relationship that’s very open.” Mondino. Strobel wouldn’t disclose the advertising Set to launch in October in Europe and in January in the U.S., The One will be budget for the fragrance, but said, “launches of this magnitude certainly require rolled out to just under 50,000 doors worldwide by mid-2007. millions of dollars.” In fact, Light Blue’s strong U.S. business is one reason P&G’s American team The designers collaborated with P&G on the form of the fragrance’s bottle, which is opted for a later launch for The One. “We’ve just received the brands, and while a heavy clear glass rectangular fl acon with a wide gold cap. The juice is pale amber. Light Blue is already a top seller, we want to solidify its positioning — particularly Eaux de parfum in two sizes will be sold in the U.S. The 50-ml. size will sell for given the very intense fall fragrance launch schedule in the U.S.,” said Don Loftus, $62, while the 75-ml. version will sell for $82. A body lotion and shower gel, each 200 president and chief executive offi cer of P&G Prestige’s U.S. division. A warm ori- ml., will retail for $40 and $35, respectively. A 1-oz. eau de parfum and a scented de- ental fl oral fragrance developed by the designers and P&G’s in-house perfumers in odorant will also be sold outside the U.S. cooperation with Quest International, The One’s fruity notes are featured on the top In the U.S., the scent will be available in 100 to 150 specialty store doors in and bottom notes of the scent, which opens with a citrus blend of bergamot, manda- January, then will roll out to the remainder of its distribution, about 1,200 depart- rin, lychee and peach, a fl oral heart accord of Madonna lily, muguet and jasmine, ment stores, by May, said Nicholas Munafo, executive vice president of sales and and base notes of plum, vetiver, vanilla, amber and musk. marketing of P&G Prestige. Gabbana said he has refi ned his strategy for devising scents since he helped cre- While none of the executives would comment on projected sales or advertising ate the house’s fi rst perfume Dolce & Gabbana Parfum in 1992. “At the beginning, spending, industry sources estimated that the scent would do upward of $35 million I didn’t have experience, I didn’t know about noses, about having to have precise at retail in the U.S. in its fi rst year on counter. measurements for bottles. I didn’t know anything, so that every fragrance we did was Strobel and Gabbana confi rmed that during the summer, a new advertising cam- a new experience and I learned a lot,” he said. “My favorite part of the project is the paign for the brand’s hit fragrance Light Blue, launched in 2001, was shot on the beginning because you can’t wait to see the fi rst bottle, the fi rst cap, the fi rst product, Italian resort island of Capri and is set to bow in major fragrance markets, including to register the name — I am like a kid when I start.” the U.S., shortly before Christmas. Gabbana follows his own philosophy when devising a scent by turning the fra- Strobel added that a male version of The One would eventually be launched. grance into a character. For The One, the designers looked to its wearer as a diva Strobel also confi rmed that one of the key future projects for the Dolce & Gabbana who enjoys the limelight. “I always explain to the nose who the woman is, what she brand was a cosmetics line, though he wouldn’t release any further details. eats, what she wears, what she smells, how she behaves, what she looks like, how — With contributions from Julie Naughton, New York Former Editor Brings Natural Oils to U.S. ormer British Vogue beauty editor Kathy Phillips is frankincense, coconut oil and patchouli, is intended to Fhoping her aromatherapy assortment, This Works, does restore and rejuvenate the skin. One of the line’s top- just that when it arrives in the U.S. this fall, after launch- selling items, Skin Deep Dry Leg Oil, is composed of ing in the United Kingdom two years ago. eight exotic oils, including Moroccan rose, Indian san- After years of experimenting with whatever beauty dalwood, tuberose, evening primrose, patchouli and products landed on her desk at work, Phillips would wind macadamia oil, and designed to nourish and rehydrate up using Aromatherapy Associates bath oil for more than skin. By early next year, the company plans to bring to 20 years, claiming it not only smelled good, but also offered market two moisturizers and a body treatment. healing benefi ts. Four years ago, she partnered with oil- Phillips had her former colleague, Marissa Bourke, blending experts Geraldine Howard and Sue Beechey of British Elle’s creative director, design the packaging, Aromatherapy Associates, a company known for supply- which features white bottles with labels printed in a ing royalty and high-end spas. Together, they developed a brightly colored, lower-case font. range composed of all-natural ingredients with high dos- The products, which range in price from $30 for the ages of essential oils. Muscle Therapy to $60 for the Skin Deep Dry Leg Oil, “Normally, organic oils associated with aromatherapy will enter seven Barneys stores in September. Select have an old-fashioned connotation and have a surgical or products will also be available through the Bliss cata- earthy fragrance. I thought, ‘Why not produce sophisticated logue. After a one-year exclusive contract with Barneys, products that have the same eco-friendly, all-natural ingre- the company plans to expand within the U.S. into other dients and clinical therapeutic benefi ts, but that look mod- specialty and department stores as well as boutiques ern and attractive on bathroom shelves?’ ” said Phillips. and is considering opening a freestanding boutique in This Works offers 17 products, ranging from bath oils to Los Angeles. a dry leg oil, shower gel, lotion, muscle rub and oil burner. Industry sources estimate that This Works will bring The products are preservative-free and hand-blended with in about $1 million in fi rst-year retail sales in the U.S. natural plant oils sourced from around the world — laven- The line launched in April 2004 in the U.K. with a der from the South of France, frankincense from Somalia, fl agship in London’s Chelsea neighborhood. It is now cedarwood from Morocco and geranium from China. sold at Harvey Nichols in England, Dublin and Hong The ingredients are each designed to offer a specifi c Kong. The company has also launched the brand in benefi t, said Phillips. Deep Calm Bath and Shower Oil, Germany and Scandinavia and has plans to enter Dubai made from ingredients including lavender and chamomile, over the next year. is designed for relaxation, while In the Zone, a blend of — Michelle Edgar Select items from This Works. PHOTO BY PAVEL ANTONOV PAVEL PHOTO BY WWD, FRIDAY, SEPTEMBER 1, 2006 5

WWD.COM Clinique Goes for the Plump Rodney Cutler ant a fat lip? Clinique will be happy to provide two of them — Wwith Full Potential Lips, the brand’s new lip-plumping line. Adds Doors, The collection marks the fi rst time that Clinique has ventured into the lip-plumping category. According to Janet Pardo, senior vice pres- ident of global product development for Clinique, the brand waited Products to Mix until it could develop an effective line that wasn’t painful to wear. “Many plumping products can actually feel painful on the odney Cutler’s hair philosophy lips because they are using irritants to make the lips swell,” said Rcould be summed up as hair today, Pardo. “While Full Potential tingles a little, it isn’t an all-out as- hair tomorrow — at least when it comes sault on your lips.” to the launch of his latest product, Full Potential gets its fat-lip potential from a patent-pending, Protectant Treatment Spray, which he pain-free complex that includes capsicum frutescens fruit ex- hopes will protect tresses from damage. tract and Zingiber offi cinale root oil, said to stimulate the lips. “We felt that there was a real need Palmitoyl oligopeptide then boosts natural collagen production, for a protective spray which also offers according to Pardo. treatment benefi ts,” said Cutler, who The formula also includes pearlized pigments, which are in- owns two eponymous Manhattan sa- tended to refl ect and refract the light, and a polymer blend aids in lons, one on 57th Street and one on West the product’s high-shine fi nish. Broadway. “It’s lightweight and heat- “Lips can look as much as 30 percent larger, and the effect lasts protective and lightly coats the cuticle, for up to six hours,” said Pardo. but doesn’t weigh it down.” It is also Full Potential Lips will include 10 shades, with names like designed to detangle hair. “It creates a Voluptuous Violet and Sugarplump. Each will retail for $17.50. barrier between the hair and the heat, The lineup will be available later this month in Clinique’s full U.S. so you’re actually condition- distribution, about 2,000 department and specialty store doors. ing as you’re styling.” That While neither of the executives would discuss sales projec- will come in handy when tions or advertising spending, industry sources estimated that Olympus Fashion Week Full Potential Lips could do $15 million at retail in its fi rst year begins Sept. 8, as Cutler is on counter, and that about $1 million would be spent on print ad- teaming up with Redken to vertising. The national ad visual will break later this month in do hair for more than a October fashion, beauty and lifestyle magazines. The brand also dozen runway shows, in- plans viral marketing and Internet promotional efforts, includ- cluding Cynthia Rowley ing an online sweepstakes, said Jackie Kelly, executive director and Twinkle. of global makeup marketing for Clinique. The spray, which Clinique’s Full Potential Lips. — Julie Naughton will retail for $21, will be available in late September. While Cutler wouldn’t comment on projected sales, industry sources estimated that Simple Hopes to Make the Spa Scene Easy the new spray could do $500,000 or more in its LONDON — Simple, the mass-market fi rst year on counter. skin care brand, plans to make a splash Simple:Spa’s storefront. Cutler’s distribu- on the spa scene. tion now consists of The brand, which focuses on prod- about 100 doors, includ- ucts for sensitive skin, will open its ing Victoria’s Secret fi rst treatment center, dubbed Simple: Beauty. “We started at Protectant Spa, here next week and plans to open Victoria’s Secret Beauty Treatment 25 to 30 such doors in the U.K. over the in 13 doors and are now Spray next fi ve years. expanding to 70 of their “Consumers were asking us for it,” doors — they have been great part- said Tenley Soanes, strategic market- ners,” said Cutler. His products have ing controller at the Solihull, U.K.- also entered a number of beauty bou- based brand, which is owned by ven- tiques, and in early October, Cutler ture capitalist-backed Accantia. “Our will make his fi rst appearance on QVC customers thought it would be fantastic during a segment titled “Saturday to have treatments that are suitable for Night Beauty.” Cutler will also enter sensitive skin.” the Studio at Fred Segal, which will be Soanes noted the core Simple user the fi rst retailer on the West Coast to can be concerned about having spa treat- handle the line. ments, since she often thinks products “Our growth has been slow but developed for professional use are stron- steady, and that’s the best way, I ger than conventional retail ones and For its fi rst spa location, Simple ers, toners, masks and moisturizers con- think,” said Cutler. “We’ve tried to may cause her sensitive skin to react. opted for bustling Covent Garden, taining a marine complex developed spe- align ourselves with retailers who are Soanes added the company’s man- which is somewhat of a beauty des- cifi cally for sensitive skin, is positioned as enthusiastic as we are. It doesn’t agement was looking into ways to ex- tination with neighboring stores in- at the premium end of the market. benefi t anyone if the products just sit pand Simple’s reach, since the line of cluding Nickel, Pout, Shu Uemura Prices range from 16 pounds, or $30 on a shelf somewhere.” more than 100 units already offered face and Space NK. The simply decorated at current exchange, for a 200-ml. bot- He also thinks that many consum- and body care, men’s products and baby- 1,500-square-foot space has four treat- tle of toner, to 28 pounds, or $53, for a ers need to be more realistic about care items. After some consumer re- ment rooms in its basement, while on 50-ml. jar of anti-aging moisturizer. what a product can and cannot do: search, entering the spa arena seemed the ground fl oor there’s an additional The brand’s signature Simple line, “No product is great for all hair an obvious step. “It’s an opportunity to treatment room and a 100-square-foot which is sold in supermarkets and Boots types,” he said. “I’d rather have a build the whole brand experience,” she selling area. The treatment menu in- the Chemists stores here, is signifi cant- product that works great for certain said. “The Simple brand is very well cludes a 75-minute facial for sensitive ly less expensive, with a 200-ml. toner hair types than do a mediocre one known, and there’s a very solid idea in or irritated skin, priced at 75 pounds, coming in at 2.53 pounds, or $4.80, and that ‘sort of ’ works for everyone.” consumers’ minds that it’s for sensitive or $142, and a 75-minute relaxing body a 125-ml. moisturizer at 2.88 pounds, or Cutler’s line currently has 14 prod- skin. That offers us a good platform to massage for 85 pounds, or $161. $5.50. Soanes is also eyeing prestige dis- ucts, including shampoos, conditioners, build on, and when we looked at spas, Simple:Touch, a method of discern- tribution for Simple:Therapy and sell- styling products and treatment items, we saw an opportunity to bring some- ing the skin’s needs by touch, is used ing to non-Simple spas. ranging in price from $14 to $21. thing unique to the market.” before facials to help clients learn Soanes declined to discuss sales Speaking of products, Cutler is The brand identifi ed two key users more about their skin. Manicures, ped- forecasts. However, industry sources currently developing several styling for its spa services — “spa junkies,” icures and wraps are also among the estimate Simple:Spa could generate items that are intended to provide who typically live and work in London, treatments on offer. between 1 million pounds and 1.5 mil- similar protective benefi ts. “There’s shop in high-end department stores In addition, the brand plans to en- lion pounds, or $1.9 million and $2.8 no sense in doing a me-too product,” and enjoy treatments, and “sensitive hance the Simple spa experience by million, respectively, in its fi rst year. he said. “Because we don’t have pres- souls,” who Soanes said are likely to creating Simple:Therapy, a 26-unit treat- The Simple brand generated annual sure corporately, we can grow in a have sensitive skin, be sensitive emo- ment line. “Our mainstream line is not retail revenues of 50 million pounds, way that is very organic. We’re only tionally and perhaps nervous about appropriate for therapists, as the prod- or $95 million, in 2005. While its sales adding things when there’s a need for going to a spa. ucts don’t contain the substances they are predominately generated in the something — and we take the time to “For us, it’s about being approach- need when massaging,” said Soanes. U.K., the brand also has a presence in do it right.” That being said, Cutler able, welcoming, and removing all the “We wanted to give additional benefi ts Australia, New Zealand, Scandinavia, said he hopes to have several new scary aspects of going to the spa,” she above and beyond our existing range.” Ireland and China. products on the shelves in 2007. said. The new line, which includes cleans- — Brid Costello — J.N. 6 WWD, FRIDAY, SEPTEMBER 1, 2006 The Beauty Report Luxury: Skin Care’s New Growth Serum By Molly Prior “Natura Bissé brings science to cosmetics. It uses the best ingredients in the highest concentrations,” Hueske said of the 28-year-old, family-owned brand. As for the hand- ooking good is an increasingly expensive hobby, but triple-digit price tags haven’t manipulated, marine DNA used in the company’s Diamond Drops, she commented Ldeterred the well-heeled from dashing toward a growing crop of luxury skin that ingredients are costly and kept in a safe in Natura Bissé’s laboratory in Spain. creams. But as price points continue to soar, fewer consumers can afford to buy these prod- Ultrapremium skin care products — or those priced at $150 and above — account ucts, warned industry consultant Allan Mottus. “When consumption starts dropping, for a meager 3 percent of the $2.2 billion prestige skin care market, but generate the you’ve got a problem on your hands,” he said, adding that a steady stream of price strongest growth in the overall category, where the average price point is $32.50, ac- increases have hampered fragrance sales in recent years, from which the business cording to The NPD Group. has yet to recover. Estée Lauder boldly launched her $115 Re-Nutriv Crème in 1958 (today, its sells for Mottus acknowledged, however, that both La Mer and SK-II have succeeded in rais- $330), but the trend took root in earnest a decade ago and has benefi ted from a surge ing prices without losing sales. of activity in the last three years. “Customers are not as concerned about paying high prices for products with the Although the superpriced products account for only 3 percent of the skin care best technology and science that delivers real results,” said Makoto Nakamura, presi- market, those priced at $70 and above — or twice the market average — have more dent of Kanebo Cosmetics USA, which has a skin care offering that ranges from $40 than doubled volume in the last three years to $380.2 million, growing from 11 per- to $650 for its Sensai Premier cream. He noted that the Japanese brand is the most cent of the category in 2002 to 22 percent by year-end 2005. At the same time, prod- expensive skin care per ounce, and its results are supported with clinical results. “We ucts under $70 dropped from almost 90 percent of skin care sales in 2002 to under have over 200 scientists working in our scientifi c research facilities in Japan,” noted 80 percent in 2005, and generated less dollar and unit volume last year than they did Nakamura. three years ago. Luxury skin care brands, often gushed about by celebrities, are aspirational, and During that stretch, the the pool of shoppers — generally affl uent women 35 to 50 years old — who can actually over-$150 set has quadrupled afford to buy them is small. Fortunately for fi rms entrenched in this space, younger in both unit and dollar volume ADDING UP BEAUTY consumers have turned their attention to staving off aging and the rich among them and now totals $39.6 million in seem willing to shell out a great deal of cash to do so. sales, noted NPD Group’s se- Many of them are mining their beauty regimens from the pages of nior beauty industry analyst, Karen Grant. La Mer’s core celebrity magazines, a place where La Mer is frequently mentioned. Brands leading the charge into the elite realm include skin care range “It’s about infl uencers,” said Maureen Case, president of La Mer, La Mer, Natura Bissé, Kanebo, La Prairie and RéVive. Their and RéVive Peau Bobbi Brown and Jo Malone. “There’s a committed curiosity about peers include a host of dermatological brands, including N.V. Magnifi que for the brand,” said Case, adding that aside from the occasional print ad, Perricone M.D., Murad, Dr. Brandt and Dr. Hauschka Skin $1,500. La Mer does not advertise. Care. “The experience [of La Mer] is almost an endorsement of the cus- Each brand’s guiding principle is the same: Results — not tomer,” said Case. “People today are a composite of brands, and that price — drive sales. Of course, fancy packaging and a compel- blend is very modern. Luxury is always being redirected.” ling heritage don’t hurt either, given that many of these brands Lauder purchased La Mer in 1995, and has steadily won over loy- are built on word-of-mouth advertising. alists by touting the brand’s history. La Mer was created by aerospace Grant commented that players in this segment — at home in physicist Max Huber, who looked to the healing properties of the a select group of retailers including Neiman Marcus, Bergdorf oceans to soothe chemical burns Goodman, Saks Fifth Avenue and Nordstrom — continue to caused by an experiment shatter the price ceiling. that exploded in his “A $400 to $500 face cream is no longer unusual. The market face. Twelve seems to support it,” said Dr. Gregory Bays Brown, president years later, he and founder of RéVive, adding that women are looking for an formulated the alternative to plastic surgery. Brown acknowledged that Crème, which when the company introduced its fi rst product at $120 a relies on dis- decade ago, he thought consumers might fi nd the price tilled sea kelp. high. His initial concern has been put aside. On Sept. 5, Case said that RéVive will introduce a $1,500 antiage skin treatment today La Mer called Peau Magnifi que. Its star ingredient, Telomerase, harvests its sea costs $4 million a gram, said Brown. RéVive has already pre- kelp in San Diego, sold 115 units — or $172,000 worth — across Saks, Bergdorf ’s which is later packed on ice and fl own and Barneys New York. to Huber’s New York laboratory, where it La Prairie, a Switzerland-based beauty fi rm with prices that will ferment for about four months. The Crème is range from the $40 Cellular Luxe Lip Enhancer to $650 for Skin then hand-fi lled into jars. La Mer is currently sold Cavier Luxe Cream, also gravitates toward expensive ingredients. in about 160 doors. In October, La Prairie plans to introduce the $525 Cellular Radiance “This brand is about the product itself,” declared Case. Concentrate Pure Gold, a 24-karat gold serum billed as “the richest skin care for the For its part, the Estée Lauder brand has continued the trend started by its founder most privileged faces.” and expanded its Re-Nutriv range, proving luxury’s merit in the broader department “La Prairie uses only the most innovative, advanced and rare technologies and market, as well. Re-Nutriv skin care products reach up to $900 in price, and are cur- ingredients that ensure proven results and optimum effi cacy. These technologies, in- rently sold in just over 500 doors. gredients and proprietary complexes come with a price,” said Lynne Florio, president “People will do a lot to look more youthful,” said Marjorie Lau, vice president of of La Prairie, adding that the brand’s packaging reinforces its luxury standing. marketing, North America, for Estée Lauder. She noted that Re-Nutriv has a strong in- “Beauty is a lifestyle. And in order to have beautiful, healthy skin you have to make ternational business, particularly in Europe and Asia, where women tend to be more an investment,” declared Nancy Hueske, general manager and marketing director skin-conscious. for the Barcelona-based Natura Bissé, which boasts an average retail ring of $600. She added, “We are living in an age where people are youth-obsessed.”

adjacent to the Apothecary section on the main fl oor of the New York fl agship. Bettina O’Neill, cos- Bionova Mixes Up Nature’s Cocktail metics and fragrance buyer, seems bullish on the brand, which she noted has been tracking consis- MICHAEL DANIELOV IS BUILDING A HIGH-TECH SKIN CARE BUSINESS tent growth. “The product sells amazingly,” she with his Bionova brand, one jar at a time. said, adding, “The product makes the skin do The brand is based on the research done by Danielov dating back to the what it is supposed to do.” The only negative fac- Seventies in the former Soviet Union, when he studied the human body’s ability to tor, she said, is the organic smell. “We tell people cope with severe trauma. Out of this grew his system of using tiny, or nano, quanti- it’s like vitamins or natural sub- ties of natural bioactive ingredients to help the body repair itself, particularly in stances found in the body.” Some cases of skin disorder. O’Neill said that Barneys is Bionova Bionova Inc., founded in 1997, markets an N1 custom-made line. It hinges on focusing on the better-selling cus- products personal profi les describing individual skin conditions. These profi les focus on tom line and editing down the from the N1 nine separate body parts, such as a forehead or hand, and the different conditions Impact ready-to-use range. custom-made of each, because each bodily region has a different molecular makeup and growth Executives would not divulge and Impact tendencies, he said. numbers, but industry sources lines. According to the company, there is the possibility to create 144 products for estimate Bionova’s sales at be- women and 144 for men. Prices, which range from $150 to $300 a jar, are calcu- tween $500,000 and $1 million lated based on the answers to the questions, because the needs dictate the ingre- retail. dient combination. Danielov noted that the Bionova also markets a premixed, or Impact, line and three other ranges: Bio 1 company is talking to another Act, Bionova Sort and Bionova Spa. major retailer about distribu- The products are merchandised on the company Web site, but since 2004, the tion and is about to enter the bricks-and-mortar distribution has consisted of Barneys New York. It is now sold British market via QVC U.K., which will air Oct. 29. Bionova has created a special in the Los Angeles and New York fl agships after the line was consolidated out of 10-product line for QVC, called Bnscience, and the custom line will be marketed the 18th Street Co-op store in New York. in a link between the QVC and Bionova Web sites. Last weekend, the Bionova counter was moved to a more productive location — Pete Born PHOTO BY PAVEL ANTONOV PAVEL PHOTO BY WWD, FRIDAY, SEPTEMBER 1, 2006 7 WWD.COM WWD.COM Rite Aid Bolsters Its Competitive Standing NEW YORK — Rite Aid’s plan to buy Brooks-Eckerd will have a trickle-down tive management talent to improve profi tability by achieving substantial cost impact on the beauty industry. savings and growing sales.” Rite Aid, the nation’s third largest drugstore chain, announced Aug. 24 that it Sammons said Rite Aid will continue organic growth with its successful plans to buy Brooks-Eckerd in a cash and stock deal. The addition of the 1,858 Customer World store design, which puts beauty front and center. stores elevates Rite Aid to some 5,000 doors and $27 billion in sales, putting the With all mergers, there are ramifi cations across the industry. Most likely the chain closer to the top drug operators, CVS and Walgreens. All stores will be buying staff at Brooks-Eckerd will be phased out over the next several months. remodeled and rebranded as Rite Aid, which could signal changes in the look of That dismantles a beauty team that is well respected in the industry. Some already the beauty department. have found new positions within the industry. Rite Aid, of course, already has The deal is another chapter in a top-notch beauty buying and merchandising the ongoing consolidation of the department led by Judy Wray. drugstore industry, where the With fewer retail doors to call upon, there mantra is that the big are getting most likely will be consolidation of manu- bigger to not only compete with facturer sales staffs, too. Jack McAuliffe, the each other, but with gargantuan founder of The Beauty Handbook, thinks it discounters such as Wal-Mart. could impact suppliers in other ways. “We Just this year, Walgreens might see more consolidation of vendors, too,” nabbed Happy Harry’s and he predicted. Another source added that a big- Medic Drug, while CVS took over ger and more aggressive Rite Aid could mean Albertsons’ drugstore operations. suppliers will have to ante up and help Rite The compression of the indus- Aid reformat the stores it acquired. “They’ll try started in the mid-Eighties be able to put the squeeze on suppliers,” said when the mostly regional chains one manufacturer. started merging to strike greater The pressure could especially be on for economies of scale. small beauty fi rms who have distribution in Acquisitions reached a fever Brooks-Eckerd, but may face new standards to pitch in the Nineties and Rite prove they belong in Rite Aid units. Industry Aid was one of the most ag- sources said Rite Aid’s beauty departments gressive, adding K&B Drug are more productive than Brooks-Eckerd, and Stores, Harco Drug, PayLess Sammons, in her remarks at the time of the ac- Drug Stores and Thrifty Drug quisition, said one of Rite Aid’s fi rst tasks will Stores to its roster after losing be to make Brooks-Eckerd stores more produc- the chance to buy Revco Drug tive at the front end. Stores at the hands of antitrust Some industry observers wonder if that intervention. CVS stepped in move will further impact smaller manufac- and nabbed Revco, one of the turers, who are already having a tough time fi rst large buys for the chain, getting shelf space. It can work the other way, which proved the company too. Brands such as easily could assimilate stores. Del Laboratories’ Acquisitions helped both re- N.Y.C. New York tailers gain critical mass. Color and Styli- Economies of scale also are Rite Aid’s Customer Style could get more driving this deal, according to World store design. doors as part of the Mary Sammons, president, chief merger. The store executive offi cer and now chair- shuffl e also could be man of Rite Aid. “Adding these good news for Vital stores to our company gives Rite Aid scale comparable to our major drugstore com- Radiance, which did not launch in Brooks and only in select Eckerd doors. petitors, and we believe this enables us to compete more effectively in a highly com- With both CVS and Walgreens pursuing European lines sold exclusively in- petitive business,” she said. side their doors, eyes point toward Rite Aid and whether it, too, might add The new locales dovetail nicely with Rite Aid’s existing markets, she added. similar proprietary offerings. In the past, Rite Aid has chosen to help launch “With 70 percent of the acquired stores located in states where we already op- a new brand on an exclusive basis for a limited time and then allow it to be erate, we expect to leverage our systems, programs, best practices and execu- rolled out. By doing so, Rite Aid doesn’t “own” the label and all of the market- ing that goes along with that ownership. There’s also the question of what will become of the European-style derm ROLE MODEL: Maybelline New York has named skin care centers operated by Brooks. Brooks was the fi rst American drugstore Danna García as its newest Hispanic celebrity operation gusty enough to make space for upscale skin care brands, such as spokesperson. García, of Colombian descent, Vichy, to be sold in a drugstore environment with trained beauty advisers. TOP NOTES will appear in TV and print ads, all solely Industry consultant Allan Mottus expects Rite Aid will forgo the European cen- in Hispanic media outlets. The 25-year-old ters. “They’ll concentrate on changing those stores to Rite Aid as fast as they actress and singer has been in more than 25 soap operas and has can and the derm centers will be history,” he suggested. launched an album, “Momposina,” recorded with the band Café But Philippe Patsalidès, general manager for the active cosmetics division Moreno. The album went triple platinum. García currently appears of L’Oréal, thinks the opposite. “We are always continually looking for ways to in three soap operas, including “Pasión de Gavilanes.” Americans expand our Dermo-Cosmetic Skincare centers and have had a very successful last saw García in a leading role on “Corazón Partido,” which relationship with Brooks-Eckerd in the past. We look forward to exploring fur- aired on Telemundo. García’s multiyear contract is expected to be ther growth opportunities with this new group,” he said. worth $1 million, according to industry sources. Rite Aid is not a stranger to digesting stores, and Sammons said the systems and people are in place. Many in the business also think Rite Aid will shed MASCARA SWAP: Cover Girl is starting its engine and embarking some of the unprofi table stores. on an eight-city tour to tout its LashExact Mascara. The mission As Brooks can attest, merging stores can be a challenge. That was the case when Brooks purchased 1,549 Eckerd stores two years ago. Brooks opted to Danna García of Cover Girl’s road trip, which kicks off in Chicago on Sept. 6 and is slated to end in Boston on Oct. 29, is to convince women keep the Eckerd name, a move some experts feel stymied the digestion. to fork over their department store mascara for LashExact, a formula designed to plump Assumption of the stores had been slower than expected, especially when com- and separate lashes. Women who do part with their department store brand will be given a pared with CVS, which quickly converted the Eckerd stores it purchased. CVS free, full-sized LashExact Mascara. As part of the tour, Cover Girl’s purple LashExact van had no qualms changing the name even in cases such as in Ship Bottom, N.J., will visit a host of retailers across the U.S., including CVS, Ulta and Wegmans, and make where there is now a converted Eckerd with the CVS logo across the street stops in Cincinnati, Atlanta, Orlando, Baltimore, Washington and Philadelphia. Cover Girl from an existing CVS. will support the promotion with radio spots featuring its spokeswoman Queen Latifah. Although Rite Aid has experience buying chains, there are those who won- der if its balance sheet is up to the challenge. Last week Moody’s Investors HALTON TO BROWN: Sara Halton has been named chief executive offi cer of Kao Corp.-owned Service put Rite Aid’s ratings on review for a possible downgrade, and some Molton Brown. Halton, who joined the British beauty brand in January as chief fi nancial analysts called the chain an underperforming and highly leveraged company. offi cer, will replace Charles Denton as ceo starting today. Denton will take on the role of Seven years ago, Rite Aid was on the verge of bankruptcy after ambitious ex- deputy chairman, which will involve advising on the brand’s global strategy. Halton, who is pansion and an accounting scandal that sent its former chief executive, Martin the fi rst female ceo of a major Kao company, is initiating a new global group structure for Grass, to jail. Molton Brown. It involves the creation of two management positions and a strategy that is As part of the deal, The Jean Coutu Group will become one of the largest internationally oriented rather than U.K.-driven, according to a spokeswoman. shareholders of Rite Aid. Although some see the sale as a retreat from the U.S. market, The Jean Coutu Group founder said his company comes out looking LIMITED PROMOTION: Charlie McGuigan, formerly senior vice president for Limited good. “We started with one little pharmacy in 1969 and now we are one of the Technology Services, has been named president of Beauty Avenues, the product largest shareholders in the third-largest pharmacy in the United States,” Jean development and sourcing arm of Limited Brands’ personal care and beauty businesses. Coutu said during a news conference last week. Brooks-Eckerd’s Michel Coutu McGuigan takes over responsibilities held by Meade Rudasill, who was executive vice is assuming a role as co-chairman of Rite Aid. Coutu is long known to have a president and the creator of Beauty Avenues. Rudasill will become president and chief love of the beauty business and believes in the role of adding products and operating offi cer of Express, another Limited Brands division. Express operates with services that separate one store from the other. His vision will meet the pro- another president, Paul Raffi n, who serves as the chief merchant. ductivity requirements of his new chain and the result could be a formidable new beauty department. 8 WWD, FRIDAY, SEPTEMBER 1, 2006

The HBA Report WWD.COM Goldwell Turns to the Masses With Styling Line

NEW YORK — Goldwell is out to get some style. The professional hair care company this month is launching a styling line, complete with a marketing and merchandising plan designed to reach consum- ers. Traditionally, Goldwell products have catered to hairstylists rather than to the masses. But new items use consumer-friendly packaging that can be merchandised alongside a Goldwell Look Book, so Goldwell’s new styling assortment, set to launch this month. consumers can see what each styling item has the ability to do. tors. Three to fi ve products represent each segment. “They were not very consumer-friendly, the packag- The new line consists of 20 styling items, which are A popular item in the new lineup is Wild Unlimitor ing was dated, products were confusing, and the segmen- now entering 8,000 salons. To create the new items, spray wax, Williams said. The item was an existing tation did not make sense. It was more for the stylist and marketers at Goldwell teamed up with the creative styler in Goldwell’s Trend styling line, which catered was not a big retail line. This new line will take styling group at Rush, London, a salon chain in England. From to the hairstylist but now has been updated with new for Goldwell to a whole new level,” Williams said. them, Goldwell found out one main thing: Stylists technology (bamboo protein) and new repackaging. Prices for products range from $14 for the Nice would like help selling products to their consumers. As Nine other Trend styling items have been updated and Balance calming milk to $18 for Move Control curl putty. a result, fi ve styling segments have been created, one are now part of the new line, too. Merchandising has been developed to fi t an assort- for natural hair, one to volumize hair, one to get hair First-year sales of the line are estimated in the $20 mil- ment of salon types. For larger retail areas, products straight, one to curl hair and one to create wild hair. lion range, according to industry sources. Goldwell’s tag can be displayed on acrylic cubes fashioned with back Each segment is “clearly identifi ed by a big letter and line has also been reinvented to “Closer to Stylists, Closer panels that represent a different segment within the color-coded containers,” said Angela Williams, associ- to Hair.” The old tag line was “Professional Haircare.” styling line. For smaller retail spaces there are paper ate brand manager for Goldwell Hair Care and Styling. The older items never would have worked without cubes with beauty visuals and segment icons. Containers also have product descriptors and hold fac- a face-lift. — Andrea Nagel St. Ives Updates Its Image Globally Ancient Tea Key to Timeless Secret LOS ANGELES — Pu-erh tea, a rare, 2,000-year-old tea leaf from China that t. Ives is giving its entire skin care line a global makeover, as it introduces sells for almost $2,000 a pound, is the primary ingredient in a new prestige skin Sthe Mineral Therapy line, which includes a body wash and moisturizer. care line that hits stores in September. Since the early Eighties, the brand known for its Swiss heritage has been Timeless Secret, founded by mother-and-daughter duo May and Michelle recognized for its natural solutions for skin. Wong, based here, is a four-stockkeeping unit line that contains more than 65 “The brand has always been relevant, but even more so in today’s world due to ingredients in addition to the tea essence, including patented intelligent ce- the natural trend,” said Richard Gerstein, the chief marketing offi cer of Chicago- ramides and vitamins B5, C and E. based Alberto-Culver who joined the company in April 2005 and was formerly the Housed in simple packaging with a nostalgic print of a Chinese woman, a chief executive offi cer of P&G’s refl ect.com Web site. “We plan on taking the strong young girl and a child, the collection was devised as an antidote to chemical position of Swiss natural products and continue to drive business further. This is formulations and to regimens that require multiple steps. the fi rst part of a long-term strengthening and revitalization of the brand.” May Wong, a Hong Kong-born businesswoman with a successful electronics The makeover comes as the brand’s sales have decelerated in the mass mar- business in China and the U.S., said she came up with the idea for Timeless ket. St. Ives’ sales dropped 12 percent to $87.2 million across food, drug and Secret because she disliked the idea of having to carry several products every mass stores — excluding Wal-Mart — for the 52-week period ended Aug. 13, time she traveled. “I was looking for a according to Information Resources Inc. simple skin care line,” she said. St. Ives is planning a global rebranding effort, as well. According to Gerstein, She decided to research and launch her Select Timeless Secret items. as part of that strategy throughout 50 countries, the company has redesigned and own line with her daughter Michelle, using repackaged all of its products over the past month, from scrubs and cleansers to Pu-erh tea, something that generations of lotions and body washes. Product reformulations include updating fragrances in her family drank for beauty and well-being. scrubs and lotions “to keep relevant and on trend with women’s fragrances,” said “My grandmother and mother have always Gerstein. The rebranding initiative will be supported by a strong ad campaign that had really healthy skin,” said the younger will include both TV and print advertisements for the new Mineral Therapy body Wong. “The tea has medicinal properties, and range as well as the new apricot face products. TV advertisements will break near was used as a form of currency during the the end of next month, while print advertisements will break in November books. Tang Dynasty.” “The ad campaign will feature a fresh new look for the brand that’s more The leaf, which comes from Hunan contemporary and prestigious,” said Gerstein. province, contains 300 natural pro- Launching next month in about 50,000 U.S. food, drug and mass stores, the teins that reportedly help to detoxify Mineral Therapy line offers a body wash and moisturizer. The line is designed the body and lower cholesterol. It is so to cleanse and rejuvenate the skin by re- highly valued that at a recent auction, plenishing the skin’s nutrients. The an especially prized and aged quantity company found that its minerals keep of 250 grams sold for $200,000. The Wongs St. Ives’ the skin hydrated and moisturized for took an extract of the tea to a laboratory new Mineral an extended amount of time. Both the in Switzerland. Therapy line. body wash and moisturizer have a sug- “We wanted to blend advances gested retail price of $4.99 for a 13.5- in science with something from our oz. bottle. The company also plans to culture,” said May Wong, “and we extend the line over the next year. wanted to share it with the public. It “Mineral Therapy is infused with is an alternative to Botox, contains col- potassium, which helps bond mois- lagen peptides and is a non-hydroquinone ture to the skin while maintain- skin brightener.” ing the right water balance,” said The sku’s include Unveil, a cleansing foam Gerstein. “Women always want bet- that retails for $55 for 180 ml., designed to exfoliate, detoxify and cleanse ter moisture for their skin, and we and tone the skin. Whisper is a moisturizer for normal to combination skin, found that oil-based moisturizers are and sells for $135 for 50 ml.; it contains anti-infl ammatory ingredients. There is not working as well. With our heri- also a version for normal to dry skin. Save Face, an SPF 30 sun shield, is at $65 tage, we thought, ‘What is the natu- for 50 ml. and contains sunfl ower seed oil, shea butter, tangerine essential oils ral way to offer these benefi ts for the and micronized titanium dioxide. And Wink, an eye booster, uses a botanical skin?’ Others are using chemicals to complex to lighten dark under-eye circles and reduce puffi ness. It retails for accomplish these benefi ts, but we’re $125 for 15 ml. looking to use natural solutions.” The collection will retail at Planet Blue in Malibu and the Beauty Collection Although executives wouldn’t com- chain here, and has been picked up by Fred Segal Beauty. Michelle Wong said ment, industry sources estimate that the plan was to expand distribution on both coasts during the rest of the year. Mineral Therapy’s two products will There are also plans to add three more skin care products in 2007 — includ- bring in between $5 and $10 million in ing a face and eye mask and an ultrarich cream. A body care line — which will fi rst-year retail sales, with about $5 mil- encompass anticellulite treatments, is slated for 2008. lion to $7 million spent on advertising. Industry sources said the line could do $1 million at retail in its fi rst full year. — Michelle Edgar — Kavita Daswani PHOTOS BY PAVEL ANTONOV PAVEL PHOTOS BY WWD, FRIDAY, SEPTEMBER 1, 2006 9

The Beauty Report WWD.COM L’Oréal Reports 21.9% Surge in Profi ts

Continued from page one to become a negative infl uence on the company’s company rose 19.6 percent to 1.33 billion euros, Jean-Paul Agon overall sales, said Agon. or $1.64 billion, in the period ended June 30. Yet, revenues from the recent purchase of The L’Oréal’s earnings before interest and taxes mar- Body Shop, which have been consolidated into gin was 17.1 percent, versus 15.6 percent in the L’Oréal’s accounts starting in early July, are ex- fi rst half of 2005. pected to offset negative currency impacts for the The company’s profi ts came on revenues that, second half. as reported, reached 7.79 billion euros, or $9.58 Gross profi ts at L’Oréal were 71.5 percent of sales billion, an 8.7 percent increase in the half. On a in the fi rst half of 2006, up 170 basis points against like-for-like basis, L’Oréal’s sales rose 5.8 percent. the same period last year. Agon said the company’s They were the best half-yearly revenues the gross-profi ts progression will be slower in the sec- company has posted since 2001. ond half, but is to remain signifi cant and lead to L’Oréal’s profi ts were announced at a fi nancial substantial gross-profi ts growth for the entire year. analyst meeting held in the company’s headquar- L’Oréal’s EPS rose 25.2 percent to 1.76 euros, ters in the Paris suburb of Clichy. or $2.17, in the fi rst six months of this year versus The conference was banner in a couple of re- the fi rst half of last year. spects. The meeting marked the change in man- The company’s research and development costs agement that occurred earlier this year when Agon grew 5.4 percent to 254 million euros, or $312.7 mil- took over the helm from Lindsay Owen-Jones, who lion, representing 3.3 percent of revenues. had presided as ceo for the last 22 years. He is now Advertising and promotion expenses increased the company’s non-executive chairman. 8.2 percent to 2.36 billion euros, or $2.91 billion, At the conference, Agon said, “We are happy equal to 30.3 percent of sales. In the prior-year with the upturn in sales growth.” He also reiter- period, they represented 30.5 percent of L’Oréal’s ated that half-yearly fi gures are not necessarily revenues. representative of full-year results. Among the key launches for the company’s pro- Agon highlighted L’Oréal’s sales growth in fessional products division in the fi rst half were all of its markets, particularly Western Europe, the Play Ball and Hair Mix styling lines from where the company’s consumer and luxury prod- L’Oréal Professionnel, the Nutritive hair care col- ucts had particularly strong showings. lection from Kérastase and the Shimmer One hair He emphasized, as well, that a fi rst for the color series from Redken. company was that its cosmetics sales in the “rest L’Oréal’s consumer products division’s busi- of the world” zone (not including Western Europe ness was boosted in part by sales gains from and North America) outpaced those in North Elseve hair care products and Garnier’s Fructis, America in the most recent half. During the pe- Nutrisse and Garnier Skin Naturals items. riod, for those regions outside Europe and North Recent key launches from L’Oréal’s active cos- America, revenues came to about 2 billion euros, or In North America, L’Oréal’s cosmetics revenues metics division included Vichy’s Normaderm Nuit skin $2.46 billion, up 17.5 percent year-on-year. North were stymied by changes among distributors, includ- care and Inneov Solaire sun care, among others. America’s reached 1.97 billion euros, or $2.42 billion, ing the May-Federated merger that caused 80 doors to For the company’s luxury products division, the fra- a 9.5 percent gain. be shuttered; Alberto-Culver’s sale of almost half of grance business was bolstered by strong sales from the Cosmetics sales for L’Oréal in Eastern Europe grew Sally’s beauty supplies business to an investment fund likes of Hypnôse by Lancôme, Armani Code Women by 21.9 percent and Latin America’s, 16.2 percent, in the managed by Clayton, Dubilier & Rice, and a reduction Giorgio Armani and Polo Black by Ralph Lauren. period. of inventory by mass market clients such as Wal-Mart. The fi nancial community lauded L’Oréal’s fi rst-half Such shifts negatively impacted L’Oréal’s product sell- turnout. Lancôme’s new Absolue Premium Bx. in, but not its sell-through, and will not affect the mid- “L’Oréal’s profi ts signifi cantly exceeded expecta- and long-term business of its brands, said Agon. tions, due to much better operating margins,” said He continued, saying that overall, “the progression Sandy Beebee, vice president at HSBC in New York. of our business in the fi rst half is very encouraging, and “The benefi ts from their cost-saving initiatives were our rhythm of growth of 5.8 percent [on a like-for-like boosted by very strong price-mix improvements and basis] is very close to our midterm objective of 6 per- positive currency effects. We were also surprised that cent. Six percent would have been reached had there the margins were strong despite higher advertising not been the turbulence in American distribution.” spending than we had been forecasting. Overall, this Agon said L’Oréal’s cosmetics business over the sec- was a very strong performance. ond half of 2006 should be impacted — both positively “Earnings growth will be slower in the second half and negatively — by similar phenomena to those pres- of the year,” she continued. “L’Oréal loses the benefi ts ent in the fi rst half, and that, therefore, the company from currency and margin comparisons are challenging. should register sales gains almost on a par with the They also plan to boost A&P spending again to support fi rst half ’s (or about 6 percent). key hair care launches in Europe and the U.S. However, As for currency effects, an inverse trend is expected full-year earnings growth is still very attractive. We are for the second semester versus what there was in the confi dent L’Oréal will achieve double-digit EPS growth fi rst. In the January-through-June period, currency and sustain organic sales growth at close to 6 percent.” fl uctuations boosted L’Oréal’s business by 2.4 percent. L’Oréal’s stock closed up 2 percent to a unit price However, the weakening of the dollar and other cur- of 81.70 euros, or $104.63 at current exchange, on the rencies versus the euro in the second half are expected Paris Bourse Thursday.

Evian Plans Pop-Up Spa for Manhattan A rendering of the pop-up spa.

ost people hear Evian and think “bottled water.” What most people don’t Mknow is that the water comes from the French town of the same name, which has functioned as a health resort for close to 200 years — and the company’s ex- ecutives plan to bring that heritage to Manhattan with a temporary spa, set up from Sept. 6 to 28. “Evian-les-Bains has always been a pristine place where those in the know have gone to renew their health,” said Marc Jacheet, chief marketing offi cer for Evian North America. “We want to promote the benefi ts of the brand and bring some of the magic of Evian to consumers, and this seemed a natural way to do that.” The 1,500-square-foot temporary space, designed by Matthew David Events, will be open Tuesdays through Saturdays from 11:30 a.m. to 6:30 p.m. The space will be located at 521 Fifth Avenue between 43rd and 44th streets, a short hop from the Bryant Park Tents. While the primary guests will be socialites, celebrities and other opinion lead- ers, said Jacheet, parts of the pop-up spa will be available to all walk-in visitors. Three private treatment rooms in the back of the space will offer three invitation- only services: an Evian Detox Facial, a hot-stone Evian Mineral Massage and Evian Refl exology, all of which involve the water in a signifi cant way. In the front of the temporary space, three stations will be set up to offer hand refl exology treatments to all walk-in visitors. expanding the concept globally. And while the brand naturally wants to appeal to Evian North America has done three previous incarnations of pop-up spas in the infl uential people, Jacheet likes the democracy of anyone being able to walk in and U.S., the most recent in Los Angeles for the awards shows. “We want to be linked to learn about the benefi ts of Evian. “We don’t want something superluxe for just three what’s new, hip and hot,” said Jacheet. While Evian is sold in 120 countries, the pop- people,” he said. “We want to show the benefi ts to everyone.” up spa concept is primarily an American one, although Jacheet said there is talk of — Julie Naughton 10 WWD, FRIDAY, SEPTEMBER 1, 2006 WWD.COM Mass Retailers Ahead in August Comps

Victoria’s Secret AUGUST SAME-STORE SALES posted an 18 percent AUGUST JULY JUNE sales gain in August. 2006 2005 2006 2006 % Change % Change % Change DEPARTMENT STORES BON-TON -5.7 -1.2 12.2 6.6 DILLARD’S -1.0 2.0 -3.0 -1.0 FEDERATED 3.8 1.1 3.3 1.7 GOTTSCHALKS -1.1 0.4 -0.7 0.3 KOHL’S 5.2 4.6 5.9 7.1 NEIMAN MARCUS 4.4 8.2 NA 7.7 NORDSTROM 7.1 8.0 5.3 4.7 J.C. PENNEY -0.5 2.8 4.9 4.3 SAKS DEPT. STORE GROUP -2.0 -4.9 -1.5 2.0 SAKS FIFTH AVE. ENTERPRISES 5.0 5.3 3.4 5.3 STAGE STORES 3.8 1.5 3.5 3.5 AVERAGE: 1.7 2.5 3.3 3.8

SPECIALTY CHAINS By Liza Casabona In the department store channel, Nordstrom’s comps ABERCROMBIE & FITCH 6.0 24.0 3.0 -4.0 gained 7.1 percent, Neiman Marcus was up 4.4 percent ugust same-store sales were marginally above ex- and Saks Fifth Avenue jumped 5 percent, proving that AEROPOSTALE 3.3 1.3 -1.9 -1.1 Apectations, with cash-strapped consumers pinch- luxury customers are still spending. In its sales call, AMERICAN EAGLE 11.0 11.8 7.0 11.0 ing pennies by looking for bargains and spending more Nordstrom cited women’s, intimates, designer apparel ANN TAYLOR 1.9 3.7 5.1 12.5 money at mass market discounters. and accessories as strong drivers of same-store sales; BANANA REPUBLIC 2.0 -6.0 0.0 -4.0 As a result, among the retailers tracked by WWD, all categories outperformed the overall store. the mass channel performed the best with a 2.4 percent In the midtier department store sector, results were pos- BATH & BODY WORKS 13.0 1.0 16.0 8.0 increase in average same-store sales against a 6.4 in- itive, as well. Kohl’s gained 5.2 percent, while Federated BEBE 12.5 16.9 10.0 3.5 crease the prior year. Specialty stores rose 2.1 percent posted a 3.8 increase in same-store sales over the prior year BUCKLE -8.5 -3.9 -7.6 -5.9 on average versus 5.1 percent the prior year, and the heading toward its Sept. 9 relaunch of the Macy’s brand. department store sector was up 1.7 percent over 2.5 per- “Our business remains fi rmly on track heading into CACHE -3.0 11.0 2.0 4.0 cent the previous year. Thirty-one out of 48 stores that one of the most important milestones in our company’s CATO 4.0 2.0 1.0 -3.0 reported this week were up over last year. history,” said Terry Lundgren, chairman, president and THE CHILDREN’S PLACE 12.0 4.0 15.0 14.0 The deceleration in sales seen in July continued with chief executive offi cer, in a statement. “We look forward two of the three sectors, department stores and special- to the nationwide relaunch of the Macy’s brand on Sept. CHICO’S FAS -2.6 14.0 4.9 5.1 ty stores, dropping slightly from July comparable-store 9, when more than 400 former May Co. locations convert CHRISTOPHER & BANKS 5.0 1.0 10.0 10.0 sales levels. to the Macy’s nameplate.” CITI TRENDS 13.7 20.3 7.7 4.3 The chain store index tracked by the International Some department stores faltered, though, including Council of Shopping Centers increased 2.9 percent for Bon-Ton, Dillard’s, Saks Department Store Group and CLAIRE’S 1.0 10.0 2.0 2.0 August. The number did not include some chains, in- Gottschalks. All posted declines. CVS NA 7.8 NA NA cluding drugstores, that will report next week. While J.C. Penney’s same-store sales fi gures for last DEB SHOPS NA NA -9.6 -4.9 “On a monthly basis, overall retail chain store sales month were a slight disappointment, dropping 0.5 percent, continue to waver back and forth, with some months industry observers remain impressed by the company’s DRESS BARN 2.0 11.0 5.0 6.0 beating expectations while others [are] falling short. performance lately. Still, companies such as J.C. Penney, GAP (U.S. STORES) -11.0 -7.0 -13.0 -4.0 This month’s performance was near expectation and which has its pricing and channel diversifi cation in order, GUESS 4.0 6.4 10.7 11.7 likely to be a bit stronger once the drugstore chains re- will continue to have a favorable outlook, Hastings said. port their results,” said Michael Niemira, ICSC’s chief Overall, the mass merchant sector performed very HOT TOPIC -6.0 -7.1 -7.2 -3.4 economist and director of research. well, with only one retailer, Stein Mart, reporting negative LIMITED BRANDS (TOTAL APPAREL) -5.0 -3.0 -10.0 -9.0 “August chain store sales confi rm the slower growth trend comps. Wal-Mart and Target both met their projections for MOTHERS WORK 5.0 -0.5 3.9 6.2 that started in June 2006, and it should persist for many August sales, up 2.5 percent and 2.8 percent, respectively. NEW YORK & COMPANY 1.0 -13.4 -0.1 -5.5 months to come,” said Richard Hastings, vice president, se- Target’s numbers were up against a tough comparison to nior retail sector analyst, Bernard Sands, in a report. last year, when its comps increased 6.3 percent. Target OLD NAVY -8.0 -11.0 0.0 -6.0 But don’t discount consumer spending habits. said on its sales result that the growth was due to an in- PACIFIC SUNWEAR -9.4 2.6 -10.6 -2.7 “Consumers are consistently surprising us with both crease in the size of ticket. The growth was due mostly RITE AID NA 0.6 4.1 3.6 their resiliency and their desire to continue to spend. to perishables, toys and baby clothes. Women’s apparel, We’ve seen some slippage recently in consumer con- jewelry and accessories were among the worst comp-sale UNITED RETAIL 3.0 8.0 5.0 5.0 fi dence numbers, but you’re not seeing that directly categories, according to the company’s sales call. VICTORIA’S SECRET 18.0 2.0 13.0 6.0 manifested in retail consumer spending,” said Chris TJX Cos. exceeded expectations, with a 4 percent in- WALGREENS NA NA 9.7 9.0 Donnelly, partner in the retail practice at Accenture. crease in same-store sales. “It is always dangerous to bet against the consumer. “Our August consolidated comparable-store sales in- WET SEAL 8.7 48.3 6.4 -4.0 As long as they have stable sources of income, con- crease of 4 percent exceeded our expectations, as we saw WILSONS -18.5 -7.9 -18.3 -19.9 sumers will make decisions about where they spend. business trends pick up toward the end of the month,” said ZUMIEZ 4.7 9.4 8.4 12.4 Luckily for the economy, the irrational spending habits Ben Cammarata, chairman and acting ceo, in a statement. of the consumer will hold up under even the toughest of Ross Stores’ 3 percent comp came in at the high end AVERAGE: 2.1 5.1 2.2 1.8 conditions …and we have a long way to go before it gets of expectations that the company revised downward. that tough,” said Hastings. “People are going to the mall right now and buying MASS MERCHANTS Specialty stores continued to be the sector of the stuff. They’re just being selective about where they’re market most affected by this summer’s mixed sales re- doing that,” Donnelly said. COSTCO 5.0 9.0 6.0 4.0 sults. American Eagle Outfi tters, the Limited Brands, “Compared with the fi rst half of the year, sales have, ROSS STORES 3.0 13.0 1.0 5.0 Bebe, Citi Trends and The Children’s Place were among on trend, moderated since June — a pattern that we are STEIN MART -2.8 5.3 -5.9 0.9 the companies that stood out for the month, all posting likely to see characterize the remainder of the year. For comps over 10 percent. September, ICSC expects same-store sales to increased TARGET 2.8 6.3 3.1 4.8 After missing expectations in July, American Eagle by 3 to 3.5 percent, on a year-over-year basis, as consum- TJX COS. 4.0 2.0 4.0 4.0 beat predictions for last month. Its 11 percent comps in- ers’ wrap their back-to-school shopping,” Niemira said. WAL-MART (DISCOUNT STORES) 2.5 2.6 2.3 2.0 crease was driven mostly by trend-right back-to-school Moving forward, industry analysts said the same pattern AVERAGE: 2.4 6.4 1.8 3.5 offerings, including a planned denim push and the Web of mixed results across the retail apparel sector is likely to rollout of its new aerie lingerie subbrand, according to continue, but some caution that the holiday season will be industry analysts. The company also cited a shift in tax- the true test of consumer willingness to spend. TALLY: free holidays and a late start to the school year in some “The overall group is showing signs of wear and tear UP 31 37 33 33 regions as factors. The company raised its third-quarter resulting from shopper hesitation that is primarily the earnings guidance to 56 cents to 58 cents a share based consequence of the dual impact of the decline of the FLAT 0 0 0 0 on its August performance. house wealth effect and the continued impact of high DOWN 15 11 15 15 Citi Trends performed well last month due to a gas prices. Back-to-school should remain on track for TOTAL 46 48 48 48 strong back-to-school start and good product offerings, year-over-year growth, but there are bigger concerns according to analysts. The company reported a 13.7 per- about the holiday season based upon the chain-store cent increase in same-store sales for August against a sales trends and weak personal savings data trends,” SOURCE: COMPANY REPORTS tough comparison of 20.3 percent the prior year. Hastings said in a report. WWD, FRIDAY, SEPTEMBER 1, 2006 11 WWD.COM MEMO PAD Wexners Sell $125M in Stock eslie H. Wexner, chairman and chief FOR ME?: Seems like publishers are celebrating Labor Day by relieving some editors from labor Leslie H. Lexecutive officer of Limited Brands for more than a weekend. Hachette said Thursday the October issue of the low-cost women’s Wexner Inc., and his family have divested some monthly For Me will be its last. Hachette tested the twentysomething women’s service title in of their shares in the retailer, yielding late 2004 to take on competitors Time Inc.’s All You and Bauer Publishing’s First for Women more than $125 million. and greenlighted the magazine in spring 2005. But For Me, according to one insider, always Wexner and his wife, Abigail, sold had the underdog complex: “We were designed to be a low-cost title, not designed to be a more than 5 million shares in Limited magazine they were going to put a lot of money into.” Brands in three transactions between The magazine, which cost $1.95 on newsstands, shared a number of resources with Tuesday and Thursday, including sister title Women’s Day in Hachette’s Women’s 3.5 million shares at $25; approxi- Service Group and had only hired one staffer mately 1 million shares at $25.50, and since its launch. According to sources close to 508,739 shares at $25.50, according to a the title, For Me had not renewed its contract Securities and Exchange Commission with its public relations fi rm Stanton Crenshaw. fi ling. The sales of the shares generated Another sign of trouble could have been the a total of $125.2 million. departure of publisher Ellen Abramowitz, who While the exact amount netted by left the company a month ago to join Avon. the Wexners could not be learned, the Coincidentally, Hachette decided against a family is one of the richest in retail- stateside launch of its U.K. women’s magazine ing, worth approximately $2.7 billion. Red, which it tested in the U.S. in April 2005. Wexner was paid a total of $3.8 million The newsstand-heavy For Me had a in 2005, which was a 21.2 percent de- circulation of about 300,000, according to crease from the year earlier, due to a sources, compared with All You’s guaranteed drop in profi ts and tepid sales. circulation of 500,000, exclusively through Wal- — David Moin Mart stores. In comparison, First for Women sold 1,254,286 copies on newsstands in the fi rst half of this year, according to the Audit Bureau of Circulations. As of Thursday, it was unclear whether editor Ellen Breslau and her 12 full-time staffers will stay with the company, though a Hachette spokeswoman said: “She’s a very Tesco Unveils F&F Collection talented editor. We’d like to fi nd a place for her.” As women’s titles get the cold shoulder at Hachette, the company is turning its focus on its new launch, Shock, the men’s monthly By Nina Jones featuring guts and gore photography. Hachette will promote the magazine through cable advertisements to 18- to 24-year-old men. Though Time Inc. gave up on Offi cepirates.com, LONDON — Tesco, the U.K.’s leading food retailer, is taking its clothing its online offering targeting young men with similar dumb humor, it seems Hachette believes offerings upscale. there’s room for more content for this demographic. — Stephanie D. Smith The company has launched a higher-end, 30-piece apparel collection for women and men, which includes pieces such as extra-fi ne merino wool BEFORE AND AFTER ROCKS: No concert is complete without the proper pre- and post- knits and silk printed tea dresses, with prices ranging from 8 pounds, or festivities, which is why Richard Beckman and the Condé Nast Media Group are throwing $15, for a jersey tank to 90 pounds, or $170, for a leather biker jacket. No two parties around the Sept. 7 “Fashion Rocks” concert at Radio City Music Hall. On piece in the line, called F&F Collection by Lee Rees-Oliviere, exceeds 100 Wednesday, Sir Elton John will give a private concert of songs from his new album, “The pounds, or $190, the price of a two-piece tuxedo suit. (All dollar fi gures Captain & The Kid,” at a preparty at Jazz at Lincoln Center. Expected attendees include have been converted at current exchange rates.) Eva Mendez, Petra Nemcova, Molly Sims, Lenny Kravitz and Nicole Richie, but VIP wannabes “Our customer research has shown that the label is less important, as will have to cough up $1,000 a ticket to attend. Condé Nast Media Group also will host a long as the clothes are great quality and on trend,” said Sean Murray, head “Fashion Rocks” after party at Rockefeller Center that will be held in an 18,000-square- of marketing at Tesco. “F&F Collection enables us to expand on our cur- foot tent modeled after the Buddha Bar in Paris. One-ton Buddhas will greet partygoers rent offer and deliver more variety to our customers.” at the end of the red carpet, while Moroccan doors complete with arched doorways and The line has been created by Rees-Oliviere, the company’s head of de- Moroccan poetry will adorn the room. DJ Cassidy, Fab Faux and Eighties band Chic will sign, who joined Tesco in 2005 following stints at Marks & Spencer and provide tunes. — S.D.S. Jaeger. “Lee was a natural fi t to head up the development of this range,” said Murray. “[His] extensive experience...and attention to detail and cut REVOLVING DOOR: Mary Alice Stephenson has a new gig. The former contributing fashion editor underline his approach — all crucial factors in our fi rst design-led clothing at Harper’s Bazaar has joined Spin magazine as a creative consultant to help craft its look offer.” Murray added the collection was designed to appeal to both current following the departure of editor in chief Andy Pemberton. The stylist had been working on and new customers in the 25- to 45-year-old age range. various TV projects, and earlier this year, had hoped one of them might air on ABC as soon as The F&F Collection will be sold at 25 Tesco stores in the U.K. from early this summer, but it did not. September and merchandised alongside the company’s existing clothing Meanwhile, Vogue, Men’s Vogue and Vanity Fair all have tapped some new sales talent. lines, Florence & Fred and Cherokee, with promotional imagery highlight- Michael Provus, publisher at Giant magazine, is Vanity Fair’s new advertising director. Provus, ing the line. The company plans to roll out the collection to 42 Tesco stores who will start on Sept. 14, replaces David Wade, who left the magazine a month ago, according for spring 2007, although there are no plans for it to be sold in Tesco’s to a Vanity Fair spokeswoman. Laura McEwen has been named advertising director at Vogue in stores outside the U.K. a newly created position in charge of the magazine’s beauty category, while Men’s Vogue has Tesco joins stores such as Marks & Spencer and Wal-Mart in developing added Louis Coletti as international fashion director and Nancy Berger as retail and grooming higher-end collections alongside its lower-priced ranges — with Wal-Mart director. recently launching sportswear designed by Mark Eisen. Marks & Spencer Before joining Vogue, McEwen was the vice president and publishing director of Reader’s has two higher-end lines, Limited Edition and Autograph Collection. Digest and helped launch Every Day With Rachel Ray. Coletti comes to Men’s Vogue from Departures, where he was the fashion, beauty and fragrance manager, while Berger was most recently vice president of sales and marketing for men’s wear at Valentino USA. — Amy Wicks Kenzo Taps Lavia as Chairman By Miles Socha Kellwood Net Gains, Sales Decline PARIS — Alberto Lavia has been named chairman of Kenzo, the fashion house owned by LVMH Moët Hennessy Louis Vuitton, effective today. By Whitney Beckett This confi rms a report in WWD July 24 that the former chairman of up- scale Italian lingerie and apparel maker Gruppo La Perla was headed to KELLWOOD CO. SWUNG INTO PROFITABILITY IN THE SECOND QUARTER, the French luxury goods group. thanks to lower restructuring and income tax charges. Further reinforcing its management, Kenzo also promoted James For the three months ended June 30, the St. Louis-based apparel marketer reported Greenfi eld to senior vice president in charge of women’s ready-to-wear, earnings of $7.2 million, or 28 cents a diluted share, compared with a loss of $78.9 mil- licenses and communication. He previously had been vice president of the lion, or $2.84, in the same period a year ago. women’s rtw business unit and head of communications. While profi ts increased, sales decreased 2.8 percent to $474.5 million from $488.2 Lavia, who quit La Perla in June after a two-year stint, has held a series million, driven by losses in women’s sportswear. of management posts in Europe for Polo Ralph Lauren and Calvin Klein. Women’s sportswear sales dropped 4.1 percent to $274 million, and men’s fell a more He succeeds Francois Steiner, who had been Kenzo’s president and chief modest 1.9 percent to $117 million from $119 million. Retail cutbacks in the spring- executive offi cer since 2003. summer open-to-buy for some of Kellwood’s women’s sportswear brands hurt sales. Sources said Steiner had recently clashed with designer Antonio Kellwood said it is implementing plans to revitalize these brands, and it expects in- Marras, who was appointed artistic director the same year Steiner arrived. creased sales in the second half of the year. An internal LVMH memo noted that Steiner “decided to pursue new career Some brands performed better than last year, including Calvin Klein women’s better directions.” sportswear, Koret, Baby Phat by Kimora Lee Simmons and Gerber, according to Robert Greenfi eld, a fi ve-year veteran of LVMH, has also worked at L’Oréal and Skinner, Kellwood chairman, president and chief executive offi cer. the Printemps department store. For the fi rst half of the year, earnings increased to $16.4 million, or 63 cents a share, The two men take up their new posts at Kenzo as the house undergoes an from a loss of $67.1 million, or $2.40. image renovation under Marras, who recently unveiled a redesigned fl ag- Sales fell 4.8 percent to $991.3 million from $1.04 billion. ship here on the Place des Victoires. Kenzo operates 30 stores worldwide. Kellwood posted results after the stock market closed Thursday. Lavia’s successor at La Perla has yet to be named. 12 WWD, FRIDAY, SEPTEMBER 1, 2006 WWD.COM

Nau works functional Nau Sets Ecologically Correct Growth Plan features such as vents, seams and adjustable By Cate T. Corcoran The clothes will not have external logos, but the brand will fastenings into be recognizable from its look. the design of he concept behind new activewear brand Nau is clothing “We have a strongly developed point of view,” said Galbraith. a jacket for a Tthat goes from SoHo to the slopes. “You know it when you see it. This customer group is less in- clean, sleek But such a design ethos is not the only unusual thing about clined to buy a brand and more inclined to be part of a larger look. the retailer, whose executive staff includes seven veterans of cultural movement.” Patagonia and Nike. Nau executives hope the company will Nau calls its stores “Webfronts,” which refers to the way cus- eventually become a several-hundred-million-dollar business, tomers shop now by pre-shopping on the Internet, going to a store but plan to do it in an environmentally friendly way. Immediate to try things on and going back home to try to fi nd the item at plans call for opening fi ve stores next year and sales of $5 mil- the lowest possible price online. Nau believes that maintaining lion to $10 million. much of its inventory in a central warehouse will lower its costs The Portland, Ore.-based company’s unusual retail plans call and allow it to create a gallery-like environment in its stores. for ecologically correct stores that carry minimal inventory in a Giving will build customer loyalty and promote word-of-mouth small footprint of about 2,000 square feet. Each store will have storytelling about the brand, said Yolles. If the company’s choice six screens at which customers can swipe a hangtag for technical of nonprofi ts provokes controversy, that’s OK with Nau. information about a product, order clothes, or choose which of a “We won’t go out of our way to stir up controversy, but as a dozen nonprofi ts they want 5 percent of their purchase to go to. brand we have a point of view,” Yolles said. “We’re not trying to be A “Giving Wall” in the back of every store will feature two all things to all people. We think it will resonate deeply with a cer- interactive touch screens where customers can research and tain customer.” The selected nonprofi ts will be a mix of environ- select nonprofi t organizations. Shoppers who opt to have their mental, social, local, national and international organizations. purchases delivered get 10 percent off and free shipping. Store Nau clothing will be available at a 40 percent discount to interiors will be made of recycled materials such as glass tile employees of nonprofi t organizations and the company’s own and Douglas fi r logs. The Portland, Ore.-based com- pany plans to open a Web store in A conceptual rendering of a Nau store, or “Webfront.” January, followed by the fi rst of four offl ine stores a month or two later. Nau launched a blog about political and social issues last week, and will put up a marketing Web site this fall. The store locations are not yet fixed — the company is negotiat- ing leases now — but likely cities are Portland, Seattle, Chicago and Pasadena, Calif. The collection includes jackets, dresses and T-shirts. Each piece will have several functions and be made out of sustainable materials such as recycled polyester, organic cotton, wool and cashmere. A neutral palette of soft blues, greens, blacks, grays, and rusts make the clothes wearable in a variety of settings, said vice president of product design Mark Galbraith. The target customer is a creative person such as an artist or entrepre- neur who values high-quality design, said Ian Yolles, vice president of marketing. Everything is hand “infl uencers” group. The Nau Infl uencer Channel will be made or machine washable and does not need dry cleaning. Seams are up of athletes, artists and activists who will give the company shaped, elbows have darts, and technical details such as ventila- feedback on product performance, contribute to the Web site tion and adjustable closings fl ow into the seam design and don’t and represent Nau at events. add bulk. Jackets have inside pockets with iPod ports and a loop Blast Radius is creating the Web site. In addition to display- to hold a wire. Nau will take back worn-out clothes for recycling. ing detailed technical information about each product, the site This Nau Prices range from $50 for a cotton T-shirt to $350 for a jacket. will use special-effects technology from Scene7 so shoppers can travel dress Recent innovations such as a wider choice of organic cottons magnify and zoom in on product details and fabrics. can be worn and fi ner-dernier recycled polyester have made it possible for The company has no plans to wholesale. Nau has 36 employ- hiking or the brand to maintain aesthetics, performance and sustainabil- ees and has received three rounds of funding, mostly from indi- dining. ity, said Galbraith. viduals, totaling $14 million.

livery, and discontinued inventory needs to be liquidated more aggressively.” As a result, Burton said there will be Charges Push Zale to Quarterly Loss a “renewed emphasis on diamond fash- ion and solitaire engagement rings. By Arthur Zaczkiewicz asset impairment charge, earnings were ronment, we remain comfortable with “We will have dominant assortments $800,000, or 2 cents a share. our $2.01 earnings-per-share forecast. in all bridal and jewelry classifi cations,” ale Corp., saddled with after-tax For the year-end period, net earnings However, we believe Zale is in a unique Burton explained. “The average store Zcharges totaling $23.9 million, posted dropped to $54.5 million, or $1.11, from situation, irrespective of the macro en- will see an increase in sku count of 750 a heavy loss for the fourth quarter on a $106.8 million, or $2.05, on sales that vironment, to post strong holiday results sku’s. Assortments will be consistent 3.9 percent sales gain. rose 2.3 percent to $2.44 billion from as they rectify last year’s strategic mis- across all volume levels of stores. Last For the year-end period, net earnings $2.38 billion. steps and reintroduce key merchan- year, some stores that were classifi ed as were about half of the previous year. But In the quarterly report, the com- dising and marketing initiatives that high-end didn’t have a suffi cient amount the company said Thursday it was work- pany said it expects revenue to grow 3 should restore the brand image and re- of moderately priced merchandise. That ing to “deliver a solid performance” in to 5 percent in the 2007 fi scal year, with claim lost market share.” will be fi xed for this year.” the fi rst quarter — the critical holiday comparable store sales gaining 2 to 3 The analyst has a 12-month price tar- Burton went on to say that there will shopping season — and is repositioning percent and earnings per share ranging get of $26 on shares of Zale. be an increased emphasis on “promo- the Zale brand with greater selection from $1.98 to $2.08. Burton said the retailer had a strong tional key items during holiday gift-giv- and a return to merchandising the goods “Our fourth-quarter results, exclud- Mother’s Day across all brands, “result- ing periods and key weekend events,” by product classifi cation. ing the charges, were on plan,” Betsy ing in low-double-digit positive comps and the company will enforce a “timely Zale, based in Irving, Tex., did Burton, president and chief executive for the events. This was led by the Zale liquidation of unproductive inventory. not provide any updates regarding a offi cer, said in a statement. brand, which benefi ted from diamond “And last, we will increase the pene- Securities and Exchange Commission Burton said during a conference fashion and solitaire inventory that tration of merchandise purchased from investigation of its accounting practices call with analysts that comp store sales began fl owing into stores in late April. our diamond direct-sourcing operation,” that was announced in April. showed a gain of 3.5 percent and “were in The diamond fashion business was Burton added. For the quarter ended July 31, the line with expectations and fueled by bet- again driven by circle pendants. But Burton said the visual presentation net loss was $26.4 million, or 55 cents a ter-than-expected top-line growth in the we are also excited about Journey, De plan for Zale will “implement an en- diluted share, compared with net earn- Zale’s brand, offset by pressure on gross Beers product featured in their adver- hanced element package, enabling us to ings of $4.1 million, or 8 cents, in the margins due to increased clearance.” tising this holiday.” increase capacity.” The company will go previous year. Sales rose to $490.7 mil- Goldman Sachs analyst Adrianne Regarding this fi scal year’s strategy for back to merchandising by classifi cation, lion from $472.3 million. Shapira said in a research note that the Zale brand, Burton said, “A diamond Burton said, adding that “all diamond Excluding the charges, which include “given the magnitude of the company’s fashion assortment needs to be both broad bracelets will be in one showcase, [and] inventory write-downs, terminating an turnaround efforts and an increasingly and deep to drive gift-giving, orders need all diamond fashion hearts and crosses information technology initiative and an tougher discretionary spending envi- to be placed on time to ensure holiday de- [will be] in one location.” WWD, FRIDAY, SEPTEMBER 1, 2006 13 WWD.COM Brooks Bros. Opens Flagships in London, Paris

s part of its international expansion Women’s represents only about 15 per- Adrive, Brooks Bros. has opened two cent of the Brooks Bros. business world- European fl agships, in London and Paris. wide, but the Paris unit devotes an entire The 8,000-square-foot Paris unit, on room to the category on the first floor, the burgeoning Rue Saint Honore, is the which is otherwise dominated by men’s brand’s fi rst foray into France, where it shirts, neckties and sportswear. hopes its timeless fashions and go-to-any- Two staircases descend into a much length service ethic will be a hit. “We’re larger basement, with one leading to classic, yet current,” Carla Annunziato, women’s wear and another to men’s DOMINIQUE MAITRE PHOTOS BY vice president of international, said dur- sportswear. Annunziato said space al- ing a walk-through. lotments — now given mostly to men’s The rambling, two-level Paris unit — in categories like tailored clothing, sports- an overhauled historic building that also is wear, furnishings and made-to-measure welcoming new stores by Tommy Hilfi ger, — would fl uctuate according to demand. Hugo Boss, Cacharel and others this fall Brooks Bros. is banking on a multilin- — boasts the clubby, walnut-paneled decor gual, international clientele in France, of other Brooks Bros. units worldwide. boasting sales consultants conversant in The store is accented with local an- Romanian, Russian, Portuguese, Spanish, tiques and furniture, along with a mer- Italian and Arabic, in addition to French chandise selection geared to a trend- and English. conscious clientele with luxury tastes. Meanwhile, its first U.K. flagship — These include an ostrich-feather handbag boasting 11,000 square feet spread over priced at 1,698 euros, or $2,168 at current two levels — is located at 132-134 Regent exchange, and a cashmere blazer at 898 Street, near Aquascutum, Burberry, Liberty The Paris fl agship storefront. euros, or $1,147. Annunziato said she antic- and Habitat. The store marks the debut of ipates fashion-driven items selling well in women’s wear and accessories in the U.K. Europe, such as high-heeled riding boots Those products, along with men’s sports- or cropped suede jackets. Classics such as wear, shirt and ties, are carried on the The new store also carries the boys’ from places like eastern Europe, Japan no-iron shirts (98 euros, or $125) and clas- ground level, which has polished maple collection for the fi rst time, and the boys’ and Saudi Arabia — hasn’t heard of the sic wool blazers and skirts — priced at 328 fl oors and signature mahogany furniture. tuxedo is already proving popular among brand. Brooks Bros. has a nice formula, euros and 148 euros, or $419 and $189, re- Women’s merino wool cardigans and women, according to a Brooks Bros. but most people on Regent Street won’t spectively — are also represented. cashmere V-necks are stacked on round, spokesman. know the brand.” She declined to give fi rst-year sales polished wooden tables, while shirts hang The lower ground level, reached by a Late last year, the company opened a projections, however, market sources on a nearby rack. Shoes, handbags and lug- dramatic, Busby Berkeley–style spiral stair- unit on Old Broad Street in the city fi nan- estimate the unit could generate annual gage are displayed across a back wall in case, is dedicated to men’s tailored and cial district. That 3,200-square-foot store sales of $10 million. the women’s area. made-to-measure clothing. On Sept. 7, the has an area dedicated to the brand’s made- fi rm will hold an opening cocktail party at to-measure tailoring service, complete with Brooks Bros.’ polished maple fl oors and which Claire Martin, Britain’s number-one a leather Chesterfi eld sofa and a plasma- signature mahogany furniture at the female jazz vocalist, is slated to perform. screen TV showing Bloomberg News. London fl agship. Annunziato said bestsellers in Paris Brooks Bros. plans to open 10 more already confi rm a taste for fashion and stores across the U.K. over the next three luxury items. These include a cashmere to fi ve years. pinstripe shawl for 328 euros, or $417; a Although Brooks Bros. was owned black sheath dress for 348 euros, or $442, by the British retailer Marks & Spencer and women’s shoes priced from 200 euros from 1988 through 2001, stores were never up to 450 euros, or $254 to $572. In London, opened in the U.K. Claudio Del Vecchio’s quilted suede jacket, shirts with French Retail Brand Alliance bought the compa- cuffs, silk and cashmere sweaters and ny in 2001 and initiated the rollout. fashion pearl jewelry performed well. Brooks Bros. has 67 stores in Japan Brooks Bros. executives declined to and is also present across Southeast Asia. reveal sales projections for the Regent Newer markets for the brand include Street store. Edward Whitefi eld, chairman Dubai, Chile and, coming in November, of Management Horizons Europe, said of South Korea. the store, “As Brooks Bros. is a completely Del Vecchio is projecting Brooks Bros. unknown brand in the U.K. and Europe, sales to reach $1 billion within two years, I’d expect it to do between 3 million and with one quarter of that coming from in- 4 million pounds [$5.6 million to $7.5 mil- ternational sales. A 10,000-square-foot lion] in sales in the fi rst year. I don’t see it Milan fl agship on San Pietro is slated to being any more than that. open next February, replacing a smaller “Your average shopper on Regent unit on Quadrilatero Della Moda. Street — 50 percent of whom are tourists — Miles Socha and Samantha Conti IT Holdings to Expand Plus Concept With 20 U.S. Units By Jennifer Hirshlag ready-to-wear, but also so they would stand as a collec- tion in and of themselves. The big point of the Plus IT T Holdings is eyeing the U.S. as its next big market stores is that a customer will have the opportunity to Ifor its Plus IT concept stores, which puts under the buy these accessories collections from all these brands same roof all the accessories the Italian firm produces from one supplier.” for its stable of proprietary and licensed brands. Plus IT stores, which average around 700 to 1,000 Over the next three years, the fi rm has ambitions square feet, are mostly franchised and owned by in- to open 20 stores in the U.S. featuring handbags, belts, dependent operators. IT Holdings seeks to minimize small leather goods and footwear by the likes of GF the investment by designing the stores with minimal Ferré, Just Cavalli, Extè, C’N’C Costume National and M shelving and display units, while maintaining their by Missoni. The fi rst 1,000-square-foot boutique will open luxury sensibility. The owner has the opportunity to in November in Florida’s Bal Harbour Shops. Stores are place reorders for products for the store daily via IT expected to follow in Las Vegas and Manhattan’s SoHo Holding’s Web site. district by the end of the year, although locations have “Here in the U.S., the names of the designers not been confi rmed. we carry in the stores are very well known,” said Di IT Holdings unveiled its fi rst Plus Muccio, adding he anticipates generating $10 mil- IT store last fall and now has 25 loca- lion in wholesale sales over the next three years tions around the globe, including doors in the U.S. “Consumers will go in to seek out in Paris, Warsaw, Moscow and Milan. the product because they are attracted to the Its goal worldwide is to open 300 An interior of a Plus IT store and a pair of Just Cavalli name, quality, value and price. Also, more points of sale in the next spring handbags that will retail at the chain. because the positioning of the brands three years, including stand- accessories we started designing about two is different from one another, they alone boutiques and in-store years ago always had high sell-throughs,” said won’t cannibalize each other.” shops within specialty and de- Enrico Di Muccio, president and chief execu- Prices for the Plus IT assort- partment stores. tive offi cer of IT USA, the U.S.-based branch of ment open at $80 retail for belts “We always produced ready- IT Holdings. “So we began to approach acces- and climb to $600 for handbags and to-wear, but we found out the sories not only so they would complement the boots. 14 WWD, FRIDAY, SEPTEMBER 1, 2006 WWD.COM Senate Trade Proposals Trigger Opposition

By Kristi Ellis Joe Dixon, vice president of produc- tion and sourcing at Brooks Bros., said WASHINGTON — A Senate trade bill in his public comments that eliminating could include three provisions that al- duties on the specifi ed imported fabrics ready have set off debate. would help its wholly owned subsidiary, The Senate Finance Committee is Garland Shirt Co., which produces high- considering proposals that would lower quality men’s and boys’ shirts. the value-added threshold to 30 percent “While foreign makers of such shirts from 50 percent on apparel made in the from many countries can import fi nished U.S. territories of the Northern Marianas, shirts into this country duty free using Guam and American Samoa; establish a two-ply shirting fabrics from any source, federally funded trust fund for importers United States manufacturers continue and makers of pima cotton apparel and to pay duties on fabric that the United fabric, and exempt woven performance States Congress and government have outerwear pants made in China from U.S. repeatedly found is no longer made in quota restrictions. the United States,” he said. “As a result The Northern Marianas came under of this unintended duty inversion, the scrutiny for labor abuses and sweatshop United States shirt manufacturing indus- conditions in the Nineties. U.S. retailers Senate bill could try has suffered tremendously.” and apparel companies have sourced ap- have a wide-ranging Missy Branson, senior vice president parel in U.S. territories for years. The impactimpact onon trade.trade. of the National Council of Textile Or- bulk of production centers in Saipan, the ganizations, said U.S. textile producers capital, which employs guest workers pri- Marianas to use more foreign fabrics, employees,” as well as stabilize and possi- still make one-ply cotton shirting fabric marily from China. which would “negatively affect U.S. tex- bly increase revenue to the government. and will oppose the bill if it covers that More recently, the Northern Marianas tile producers currently supplying those Stephen Lamar, senior vice president category. NCTO also opposes the proposed drew attention for its connection to con- yarns and fabrics as well as U.S. apparel at the American Apparel & Footwear pima cotton trust fund because it allocates victed former lobbyist Jack Abramoff and producers forced to compete with duty Association, which supports the provi- more federally funded dollars — there is ex-House Majority Leader Tom DeLay (R., free imports made by exploited workers.” sion, said it could give the garment in- a proposed $16 million annual cap — to Tex.), who allegedly worked together to Benigno R. Fitial, governor of the dustry in the Northern Marianas a boost manufacturers and importers of pima cot- block legislation that would have raised Northern Marianas, said enacting the by making the region more competitive ton apparel than it does to yarn spinners. the minimum wage and strengthened labor change in value-added requirements for U.S. companies. Textile producers also are opposed and immigration laws in the territory. would “help halt the decline of the [terri- “You can see some of the business to a measure under consideration that The fi nance committee is examining tory’s] apparel industry,” which has seen coming back that they have lost” with this would exempt imports of certain woven public comments on various provisions its sales drop to roughly $50 million a year change in the value-added requirements, performance outerwear pants (water-re- of the omnibus tariff legislation, which from $1 billion in 1999, due to the removal said Lamar. “The island’s economy has sistant or coated synthetic fi ber fabric, often has hundreds of initiatives attached of apparel and textile quotas and a shift very little besides that.” ankle-length pants) made in China from to it, including measures that would sus- in business to China. “The manufacturers The Senate panel also is considering a quotas, while some pants makers sup- pend duties on products. cannot add 50 percent value and remain bill that would temporarily suspend du- port it. The U.S. has a bilateral import Auggie Tantillo, executive director competitive with neighboring Asian pro- ties on imports of woven cotton shirting restraint agreement with China through of the American Manufacturing Trade ducers,” said Fitial. “The reduction in fabrics and establish a federally funded 2008, which limits billions of dollars Action Coalition, said the proposal would expense would increase the CNMI’s com- trust fund for importers and producers of worth of apparel, including pants, and allow apparel companies in the Northern petitiveness and allow factories to retain pima cotton apparel and fabric. textile imports from China. Bush Labor Appointee Stirs Pro-Worker Wrath WASHINGTON — Temporarily bypassing Congressional over- sight, President Bush said Thursday he has named a lawyer who represented Wal-Mart to be the Labor Department’s chief enforcer for a slate of laws, including those involving minimum wage and overtime. Bush nominated Paul DeCamp in January, raising the con- cerns of labor advocates who said he was too close to big busi- ness. His work for Wal-Mart as a private attorney helped spur op- position among Democrats, prompting the recess appointment, which lasts until the end of the Congressional session this year. DeCamp assisted Wal-Mart in gaining permission to appeal the class-action status of a lawsuit involving 1.6 million current or former women employees that alleges sex discrimination in pay and promotions. The case is pending. Sen. Edward Kennedy (D., Mass.), during a confi rmation hear- ing last month, said he opposed DeCamp’s nomination to be ad- ministrator of the Labor Department’s Wage and Hour division. Mr. DeCamp has specialized in labor and“ employment issues with a special emphasis on wage and hour matters. — Sen. Michael Enzi (R., Wyo.)” Kennedy said in a statement Thursday he was “deeply con- cerned by President Bush’s decision to bypass the Senate” with the recess appointment. “It’s an insult to America’s workers for the president to give this job to someone with a clear record of hostility to protecting overtime and wages.” Sen. Michael Enzi (R., Wyo.), who chairs the Senate Com mittee on Health, Education, Labor and Pensions, issued a statement Thurs- day, saying he was “disappointed” with the opposition “holding up” DeCamp’s nomination and supported Bush’s recess appointment. “The president’s critics have not made a credible case to block this nomination, particularly in light of Mr. DeCamp’s strong quali- fi cations,” Enzi said. “Mr. DeCamp has had a distinguished career in private legal practice where he specialized in labor and employ- ment issues with a special emphasis on wage and hour matters.” DeCamp, who has been working as a senior policy adviser at the Labor Department, takes over from Alfred B. Robinson Jr., who has been acting administrator since June 2004, when the for- mer administrator, Tammy Dee McCutchen, resigned. — Evan Clark and K.E. WWD, FRIDAY, SEPTEMBER 1, 2006 15 WWD.COM

Oscar de Oscar de Annual Fashion Cares Event la Renta la Renta Raises $400K in Atlanta ATLANTA — The 14th annual Jeffrey Fashion Cares benefi t here turned out to be the hottest ever. Citing cost concerns, Jeffrey Kalinsky, who started Fashion Cares 14 years ago as a small in-store show, moved it from the elegant Woodruff Arts Center downtown to a tent Monday night in the parking lot of Phipps Plaza mall in the Buckhead section. Temperatures were in the 90s and a late-afternoon downpour in- undated the venue, but everything was cleaned up before show- time. The event, which drew about 650 guests, raised an estimated $400,000 for AIDS and breast cancer charities. Sponsors included Nordstrom, which donated $25,000 and Manolo Blahnik, $15,000. Gucci and Jil Sander gave $10,000. Ticket prices ranged from $150 to as much as $5,000, and the benefi t included an auction of good- ies such as a trip to Las Vegas to see Elton John perform that drew bids as high as $10,000. Kalinsky wanted to stage a “dignifi ed and restrained” show of Sixties-inspired clean, tailored dresses and suits from Oscar de la Renta, Michael Kors, Gucci and Bill Blass, among others. For the fi rst time, the show highlighted designs from fi ve stu- dents at Savannah College of Art and Design and awarded a “New Talent” award to Meghann Aubrey, who showed a bubble-shaped dress on the runway. — Georgia Lee Bill Blass PHOTOS BY PETER J. ORIGLIO PHOTOS BY NATIONAL MARKETPLACE

DESIGNER Seeking exp’d contemporary sweater designer in all aspects of line develop- ment. Sketching, illustration, specs & cads. Detail oriented w/ strong sense of color/ trend. Fax resume to: 57th St. - Full Floor - 3000 ft. 212-719-0645 or call 212-302-0489 Soho Penthouse live / work skylights ASST DESIGNER Bryant Park Duplex - All Great Deals Seeking experienced and well DIRECTOR, DESIGN & CONSTRUC- Prime Manhattan Jon 212-268-8043 organized assistant designer for TION - New York City. Plan, direct & leading manufacturer of social occasion coordinate design, construction & dresses. Must be experienced w/sample expansion of company’s N. American We are an exciting, established, room, computer literate, able to work showrooms. Bachelor’s in interior diverse & growing jewelry company in fast-paced design room and have design + 5 yrs exp in job offered or 5 looking to expand our team. knowledge of garment construction yrs exp managing design & construction and consumption. Candidate must be operations. Must have understanding motivated, creative, able to multi-task of mechanical, electrical & plumbing RETAIL SALES and work well within the design team components of design & construction. to meet deadlines. Email resume in Send resume & letter to HR Mgr, REPRESENTATIVE confidence to: DDC, Kravet, Inc., 225 Central Avenue [email protected] South, Bethpage, NY 11714. Seeking a dynamic Full-Time Associate for our SoHo Location. Executive Assistant Must be a polished professional. CONTROLLER NEEDED F/T or P/T Fashion Co. seeks detail ori- ented and self motivated individual. •Strong communication skills PATTERNS, SAMPLES, Growing infant wear company seeks a Knowledge of design & production a +. PRODUCTIONS controller w/at least 10 years exp. Must Fax resume and salary to 212-391-2159 •Fine jewelry background & be very organized, and efficient. Can- or E-mail: [email protected]. developed clientele book in All lines, Any styles. Fine Fast Service. didate will have BA/BS in accounting. Call Sherry 212-719-0622. Please fax resume to: 212-279-0131 LINGERIE & SLEEPWEAR COMPANY New York HAS 2 OPENINGS: •2-3 years of Jewerly Retail Exp Experienced First Patternmaker PATTERNS, SAMPLES, Pls. have recent exp. with bras, panties, We offer excellent company benefits Data Entry/Cstmr. Srvc./EDI & sleepwear. Swimwear & eveningwea r PRODUCTIONS Seeking exp’d., detail oriented individual. exp. also acceptable as well as knowledge Please email resume to Full service shop to the trade. Aria system a +. Fax or E-mail resume: of construction. [email protected] Fine fast work. 212-869-2699. 212-515-2424 / [email protected] Experienced Lingerie Samplemaker Pls. have recent exp. sewing constructed garments (corsets/bras), ability to work in friendly fast paced environment. Design Director of Sales Pls. e-mail resume & salary requirements BATH & BODY ASSISTANT DESIGNER to: [email protected] New B&B line seeks strong Dir. of Est’d junior dress mfr seeks a self- Sales to manage & develop wholesale motivated asst designer with min 1-2 PATTERNMAKER biz. 4+ yrs. sales team mgmt, w/ est’d years exp to work in a fast-paced envi- Jonden Knit Sportwear Co. seeks exp. contacts in dept. & specialty home ronment. Must be computer literate w/ person, Bklyn warehouse. Gerber dept req’d. Beauty exp a +. Position a basic knowledge of dress construc- skills a plus. Fax: (718) 369-4927. is NYC based. E-mail salary req’s & tion. Detail-oriented and organized resume to: [email protected] with some sketching exp preferred. PRODUCTION Import exp a plus. Competitive salary HONGDOU NEW YORK INC. and benefits. Fax resume: 212-695-8958 Pet Fashion Co. seeks indiv. With 2-3 or email: [email protected] years production experience. Follow Sales Representative up with Target and Wal-mart accts. Women’s wear manufacturer seeks Overseas travel experience a plus. salesperson in NY, either in knits or Must have good communication skills, woven. The candidate will be responsi- DESIGNER be detail oriented, organized and ble for selling mainly to importers, GREAT OPPORTUNITY AVAILABLE highly motivated. Excel a must. distributors and department stores. Immediately w/ NYC import Co. to cre- Fax or email resume & salary req. to: Please fax your resume: 212-354-5728 ate New Handbag and Backpack lines 646-486-1336, [email protected] or e-mail [email protected] from concept to final product. Must www.hongdoutrade.com have ability to create line, spec, do cad SPEC TECH - Freelance & presentation work and strong com- Lingerie company needs spec tech for NY SALES POSITION munication skills. Knowledge of MAC, approx 6 hrs, 2-3 times a week. Be able MISS CHIEVOUS CLOTHING Illustrator and Photoshop a must. Min- to measure garments correctly & record Jr. Separate Tops/2 yrs exp. imum of 5 yrs experience in backpack measurements. Min. 1 yr. exp. specing. w/specialty and Dept. Stores needed and handbag area required. Fax re- Pls. e-mail resume with hourly wage to: send resume to fx 213-488-0624 or sume to 212-695-0991, Attn: Art Dept. [email protected] [email protected] ready

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WWD Style Starts Here™ For advertising information, contact Sarah Murphy, publisher, at 212.630.4656. PHOTOS BY STEPHEN SULLIVAN, KYLE ERICKSEN, JOHN AQUINO, THOMAS IANNACCONE, GEORGE CHINSEE THOMAS IANNACCONE, AQUINO, JOHN KYLE ERICKSEN, PHOTOS BY STEPHEN SULLIVAN,