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Bringing Sexy Back

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Bringing Sexy Back LI & FUNG BUYING HILFIGER SOURCING/2 BUYERS LAUD N.Y./13 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • February 12, 2007 • $2.00 Accessories/Innerwear/Legwear Bringing Sexy Back NEW YORK — At last! As fashion week came to a close, Donna Karan delivered some much- needed seduction with a collection that was serene and, most of all, alluring. Here, her curvy bustier dress. For more, see pages 6 to 13. The Penney’s Program: Ullman Sees Service, Exclusives as Drivers By Sharon Edelson NEW YORK — Watch out Macy’s, J.C. Penney is breathing down your neck. Myron E. Ullman 3rd, Penney’s chairman and chief executive officer, said there is ample opportunity for the department store chain to capture market share from Macy’s, which is owned by Federated Department Stores. Macy’s has an average unit retail sale of $28, whereas Penney’s is $16. But Ullman believes that by emphasizing service and introducing more aspirational brands, Penney’s can attract a higher-spending customer. Part of the service emphasis will be See Penney’s, Page27 PHOTO BY JOHN AQUINO PHOTO BY 2 WWD, MONDAY, FEBRUARY 12, 2007 WWD.COM Li & Fung to Buy Tommy Hilfi ger Sourcing NEW YORK — Hong Kong-based “Li & Fung has been on the tributable to the Hilfi ger sourc- Li & Fung Ltd. and Tommy lookout for acquisition oppor- ing operations was $31 million, WWDMONDAY Accessories/Innerwear/Legwear Hilfiger said Sunday that a tunities that would further en- according to the release. wholly owned subsidiary of Li hance its global diversifi cation Fred Gehring, chief execu- & Fung will acquire Tommy and maintain a much more bal- tive offi cer of Tommy Hilfi ger GENERAL Hilfiger’s global sourcing op- anced geographical mix of busi- Group, said, “We believe that Myron E. Ullman 3rd, J.C. Penney’s chief, said there is ample opportunity erations, headquartered in ness. Our share placement ex- to take things forward, we can 1 for the department store chain to capture market share from Macy’s. Hong Kong, for $247.8 million ecuted last year has augmented benefi t tremendously from the EYE: As usual, Thursday night of fashion week always features the one- in cash. our capacity for acquisitions integration of these offices two punch of the Calvin Klein and Zac Posen after parties. Expected to close by March and positioned us well to cap- within the greater network of 4 28, the transaction will pro- ture this opportunity,” said Li & Fung, with over 70 offi ces Donna Karan sent out a serene yet seductive collection, while Ralph vide Li & Fung with enhanced William Fung, group managing in over 40 countries and ter- 6 Lauren delivered easy elegance as the shows wound down. global diversifi cation and en- director of Li & Fung, in the ritories, including as many as Many houses turned to sharply tailored suits, pencil shirts and glamor- able Tommy Hilfi ger to access a statement. 19 offi ces in China alone. The ous, body-clinging dresses, pleasing buyers. broader buying offi ce network, Hilfiger’s existing buying continued dedication of our 13 the companies said in a joint offi ces in Hong Kong, Taiwan, respective sourcing teams in statement. India, Bangladesh and Sri combination with Li & Fung’s Obituary.............................................................................................28 Monetary fi gures have been Lanka will be integrated into tremendous strength in prod- Classifi ed Advertisements.............................................................29-31 converted to U.S. dollars. the Li & Fung organization. uct development and overall Li & Fung said the purchase For the year ended March buying power will be an impor- To e-mail reporters and editors at WWD, the address is fi rstname. will be fi nanced by its internal 31, 2006, sourcing volume was tant asset while we continue to [email protected], using the individual’s name. cash reserves and is payable on $703 million and the unaudited develop our brand.” WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT completion of the acquisition. adjusted earnings after tax at- — Vicki M. Young ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 193, NO. 33. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January and November, two additional issues in March, May, June, August and December, and three additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail French Beauty Sales Soar in ’06 Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA PARIS — France’s beauty business in 2006 reg- Exports to Russia rose 43.7 percent and to China, 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE istered its largest sales gain in fi ve years, ac- 39.5 percent. Despite the dollar’s weakness, sales INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new cording to the Federation des Industries de la to the U.S. increased 7.8 percent year-on-year. subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production Parfumerie. Grangé Cabane said fl at sales to Japan were dis- correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Pretax wholesale sales of French beauty prod- appointing. Overall exports of French beauty Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list ucts rose 5.7 percent, to 15.23 billion euros, or items exceeded beauty imports to France fi vefold available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615- $19.13 billion at average exchange rates, in 2006 in 2006, according to the Federation. 5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, versus 2005. Looking ahead, Grangé Cabane said the OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED In France, pretax sales grew 3.5 percent, to 6.54 Federation, which represents 250 French cosmet- MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR billion euros, or $8.22 billion. ics companies, would support CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY Sales made through selec- the implementation of the new A SELF-ADDRESSED STAMPED ENVELOPE. tive distribution — namely, European chemical legisla- Marionnaud Parfumeries, BEAUTY BEAT tion REACH, which stands for Sephora and Nocibe perfum- the Registration, Evaluation MONDAY: London Fashion Week (through Friday). eries, plus department stores — led growth, which and Authorization of Chemicals law. As reported, it Women’s Wear in Nevada, Las Vegas (through came in at 6.5 percent. Revenues from the mass was passed in December 2006 to regulate the use of Thursday). market bounced back, increasing 3.4 percent after chemicals in consumer products, including cosmet- Designers & Agents, London (through Thursday). two years of decline. The pharmacy channel’s ics and fragrances, across the European Union. Ready to Show and Intertex, Milan (through beauty business in France grew 1 percent in 2006, Grangé Cabane said challenges facing the in- Wednesday). following 10 years of 6.1 percent average growth dustry included continuing to protect the image per year. The country’s direct beauty sales shrunk of cosmetics products, since French consumer TUESDAY: Pool Tradeshow, CurveNV and slightly, by 1.5 percent, for the second year run- concerns about ingredients began two years ago, AccessoriestheShow, Las Vegas (through Thursday). ning. French beauty exports to 202 countries grew when parabens were said to be potentially harm- MAGIC Marketplace, Las Vegas (through Friday). 7.4 percent, to 8.69 billion euros, or $10.91 billion. ful to human health. Milano Unica, Milan (through Friday). This represented 57 percent of France’s total The Federation will launch a big-budget advertis- The U.S. Commerce Department releases the beauty sales, against 55 percent in the prior year. ing campaign later this year that is intended to high- December foreign trade report. “Sales exploded in emerging markets,” said light the benefi ts and values of beauty products. Alain Grangé Cabane, the Federation’s president. — Ellen Groves WEDNESDAY: The Commerce Department releases the January retail sales report. Guess Inc. and Jones Apparel Group report fourth- It quarter and year-end sales and earnings.
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