TIFFANY’S NEW BABY/2 ESTEE LAUDER’S LATEST FACE/5 Women’s Wear Daily • The Retailers’ Daily Newspaper • March 14, 2003 Vol. 185, No. 53 $2.00

Liya WWDFRIDAY Kebede Beauty

The Great White Way PARIS — Sephora will roll out a new retail format in early May, offering heightened levels of service, from skin care to nail care. The new 9,150-square-foot store is located in the former Samaritaine department store on the Rue de Rivoli. For more, see story on page 4.

Revlon’s Deeper Red: Firm Posts 17th Straight Quarterly Loss By Evan Clark fourth quarter widened more than Investors were none too pleased and NEW YORK — Revlon Inc.’s customers sixfold to $179.4 million, or $3.44 a traded shares of the cosmetics firm might look radiant in red, but the share. This compared with the year- down 18 cents, or 6.3 percent, to color doesn’t become its financial ago deficit of $28.3 million, or 54 cents. close at $2.70 Thursday on the New statements. The quarterly loss extends Revlon’s York Stock Exchange. The beauty firm’s net losses for the losing streak to 17 in a row. See Revlon’s, Page 6 RENDERING PROVIDED SEPHORA BY 2 Tiffany Takes Stake in Jeweler WWDFRIDAY By Marc Karimzadeh where there is an opportunity to Beauty grow and evolve it from a whole- NEW YORK — Branching out be- sale business into retailing. GENERAL yond its signature chain, Tiffany That’s the expertise we can Revlon Inc.’s net losses for the fourth quarter widened more than sixfold to & Co. said Thursday it has in- bring to her.” $179.4 million, extending its losing streak to 17 quarters in a row. vested in New York-based jewel- Temple St. Clair is scheduled 1 ry firm Temple St. Clair to help to open its first unit, a 750- Sephora will unveil its next-generation concept store this May, in the last of it launch a retail business. square-foot boutique at the 4 several recent changes for the chain, which could be primping to be sold. The investment was made South Coast Plaza mall in Costa WWD, FRIDAY, MARCH 14, 2003 WWD, FRIDAY, E-tailers fighting an effort to collect Internet sales taxes issued a study through East Pond Holdings, a Mesa, Calif. The plan is to follow subsidiary of Tiffany & Co., this with a second unit on the 2 claiming states would glean little money if such a system is created. which handles investments in East Coast, though no details Skechers USA filed a counter-lawsuit against Britney Spears and her non-Tiffany activities. Tiffany’s were available. 3 companies alleging fraud and breach of contract. Temple St. Clair investment will As for whether the line will be handled by the Fifth Avenue also be distributed at Tiffany, Branching beyond its signature chain, Tiffany & Co. said it has invested in jeweler’s specialty retail divi- the spokeswoman said, “We are 2 jewelry firm Temple St. Clair to help it launch a retail business. sion, which was started last year very pleased with our three SUZY: James/Jamie King’s latest adventures…Who’s not going to the with the completion of the ac- name designers — Jean 16 Oscars and why…What do men talk about when women are not around? quisition of Little Switzerland, An 18-karat gold, yellow sapphire Schlumberger, Paloma Picasso the specialty retailer with 17 and diamond ring by Temple St. Clair. and Elsa Peretti — and Temple Classified Advertisements...... 15 luxury boutiques on five Carib- served effectively by the Tiffany will not be added to the roster.” To e-mail reporters and editors at WWD, the address is bean islands and in Alaska. & Co. brand,” said a Tiffany With more than 20 years of de- [email protected], using the individual's name. In addition, Tiffany’s busi- spokeswoman, who declined to sign experience, designer Tem- ness development division will disclose the size of its stake. ple St. Clair Carr’s jewelry is in- SUBSCRIPTION RATES U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. provide consulting services to “We have been aware and spired by her years of studying in All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. Temple St. Clair LLC, which was known Temple St. Clair for sev- Florence, Italy, and travels to Please allow 6-8 weeks for service to start. Individual subscription information: (800) 289-0273; formed this week to incorporate eral years and followed her Turkey and India, using 18-karat outside U.S. (818) 487-4526; group subscription information (856) 786-0963. Postmaster: Send address changes to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. the retail channel. work,” the spokeswoman said. yellow gold and platinum and WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional “These are opportunities in “She is a very talented designer cabochon-cut facetted stones like issue every month except July, and two additional issues in April and August, by Fairchild Publications, Inc. certain sectors that cannot be at the point of her business Continued on page 11 a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., a subsidiary of Advance Publications Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage or retrieval system, except as may be expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 Periodicals postage paid at New York, NY and other offices. Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9 GST # 88654-9096-RM 0001 Canada Publications Agreement # 40032712 Armani Does His Own L.A. Walk Printed in the U.S.A. All signed articles published in the paper represent solely the individual opinion of the writer and not those of LOS ANGELES — Another Von Furstenberg on Saturday Rodeo Drive. Said a spokes- WOMEN’S WEAR DAILY. Oscar event bites the dust. afternoon, followed by Vanity woman: “There’s a courtyard For Web site access, log on to www.WWD.com With Giorgio Armani’s offi- Fair’s Sunday night Oscar bash there, so at least guests will be cial statement Thursday that he at Morton’s in West Hollywood. able to smoke.” has canceled his Oscar week A source close to the Armani At press time, a new date for trip to Los Angeles following the camp said recently that it was a the Walk of Style event had not postponement of the Rodeo surprise the designer had any been set. Armani is to be the In Brief Drive Walk of Style event, Vanity intention of coming to the U.S. first inductee on the sidewalk Fair announced it, too, will in the first place, since he has tribute, created by the Rodeo ● POINT OF REFERENCE: The precarious state of the junior move its post-ceremony dinner expressed concerns about fly- Drive Committee and the city of business has one chain fighting to stay relevant. Since filing for — set to honor Armani and di- ing here since Sept. 11. Beverly Hills to honor distin- Chapter 11 bankruptcy protection in January, Los Angeles-based rector Martin Scorcese and Despite his absence during guished designers and style leg- Reference Clothing Inc. has been forced by the court to close hosted by the magazine’s editor the coming week, however, the ends for their contributions in two of its 23 stores primarily located on the West Coast. One in chief Graydon Carter — to co- company will continue to host the ever-merging worlds of store at the Boulevard Mall in Las Vegas and another at the Del incide with the induction. the book launch party for People fashion and entertainment. Amo Fashion Plaza in Torrance, Calif., shuttered in February. A Vanity Fair spokeswoman columnist Steven Cojocaru’s re- Honorees will be recognized According to court papers, the chain filed the “emergency” peti- confirmed that other than the lease, “Red Carpet Diaries: with a brass plaque engraved tion to avoid closing a third location at Northridge (Calif.) Mall. dinner cancellation, which Confessions of a Glamour Boy,” with the signature and a quote Stores at Paseo Colorado in Pasadena, Calif., and at The Grove would have taken place at Mr. on March 20 at Emporio from the inductee, as well as a in Los Angeles remain open. Company owner and president, Chow in Beverly Hills for 100 Armani in Beverly Hills. The maquette modeled after the Young On, could not be reached for comment. Ian S. Landsberg, guests, Carter’s other plans for event, though, has been moved Robert Graham-sculpted 14- On’s attorney, also did not return phone calls. According to court the week remain in place. As per from the Brighton Way space, foot statue, “Torso”, which also documents, a partial list of the largest claims against Reference annual tradition, Carter will be still under construction, which be unveiled when the ceremony totals $3.5 million while the company’s assets are estimated to at the picnic held at the Malibu is listed on the invitations to the takes place. be in the $1 million to $10 million range. Reference, like Los home of Barry Diller and Diane temporary door at 443 North — Rose Apodaca Jones Angeles-based Forever 21 and Sweden’s Hennes & Mauritz, is a cheap-chic emporium, with trendy, disposable fashion at prices ranging from $22 to $100.

● COLUMBIA’S MOUNTAIN MOVE: Columbia Sportswear Co. said Thursday it has entered into a definitive agreement to ac- quire Mountain Hardwear Inc. for approximately $36 million, in- DMA: Internet Tax No Windfall for States cluding approximately $30 million in cash and assumption of $6 million in debt. The Portland, Ore.-based outdoor apparel com- By Joanna Ramey lecting e-taxes. The stores argue Mart, the chain initially formed pany said the merger is subject to approval by the shareholders that cyber retailers should also a separate company to avoid of Mountain Hardwear and is expected to close on March 31. WASHINGTON — Catalog and e- have to shoulder the cost of tax this sales-tax requirement. Richmond, Calif.-based Mountain Hardwear designs, develops commerce companies fighting collection, which, for large The DMA’s Wientzen dis- and markets technically advanced equipment and apparel for an effort to collect Internet chains, can run into the millions counted voluntary e-commerce outdoor enthusiasts. A Columbia spokeswoman said apparel ac- sales taxes issued a study Thurs- of dollars annually. tax collections, arguing that re- counted for $24 million of Mountain’s $31.4 million in sales last day that claims revenue-hungry Thirty-five states are leading tailers like Wal-Mart are simply year. Mountain Hardwear will continue to be based in states would glean little money proponents in the pro-sales tax realizing savings by using a Richmond and will operate as a wholly owned subsidiary. No if such a system is created. layoffs are planned and company founders Jack Gilbert, Paul The study, released by the Kramer and Mark Wallenfels will continue to lead the senior Direct Marketing Association, is A lot of pure Internet retailers will management team. The Columbia logo won’t be featured on the the latest salvo in the Internet “ Mountain Hardwear product. sales tax debate that is soon to have problems staying afloat. There is be reinvigorated on Capitol Hill. “A lot of pure Internet retail- no pot of gold for the states in creating WWDStock Market Index for March 13 ers will have problems staying afloat,” if they’re required to new burdens for remote retailers. Composite: 95.69 Broadline Stores: 96.18 Softline Stores: 91.93 collect taxes, said H. Robert ” Wientzen, president and chief — H. Robert Wientzen, Direct Marketing Association executive of the DMA. “There is no pot of gold for the states in camp and they point to growing “clicks-and-bricks” strategy of creating new burdens for re- state and municipal deficits as using stores for Internet inven- 3.96 4.04 5.16 mote retailers.” cause for Congress to allow tory and e-sales returns. The issue pits direct mar- them to form compacts to tax According to the DMA-com- Vendors: 97.85 Textiles: 96.25 keters against leading bricks- Internet sales. Now, remote sell- missioned study, state Internet Index base of 100 is and-mortar retailers who favor ers are only required to collect tax collection forecasts of huge keyed to closing prices e-commerce sales taxes, and sales taxes if they have a physi- windfalls were made before the of Dec. 31, 2002. some, like Wal-Mart, have al- cal presence where goods are dot-com bust three years ago. 1.98 1.67 ready voluntarily started col- purchased. In the case of Wal- Continued on page 11 3 Tommy Bahama Skechers Countersues Spears FRIDAY,WWD, 2003 14, MARCH Accepting Suitors By Julee Greenberg NEW YORK — Almost three months after Britney By David Moin tion,” Margolis said. “People Spears filed a lawsuit against Skechers, the com- come to us, some go away imme- pany has responded with legal action of its own. NEW YORK — Will Tommy Baha- diately because we don’t like the The Los Angeles-based footwear firm Skechers ma, one of the nation’s hottest feel, others seem symbiotic and USA Inc. filed a lawsuit late Wednesday against apparel brands, soon be sold? interesting. But everything, with Spears and her companies, Britney Brands Inc. and As always, it depends on the the exception of Saunders Karp & Britney Touring Inc., alleging fraud and breach of price. But the privately owned Megure, has amounted to nothing. contract. The lawsuit, which was filed in federal brand, which is particularly We have conversations every court in Los Angeles, also charges Spears with unjust strong in men’s wear, has been week. We are always willing to enrichment and negligent misrepresentation, and seeking a deal for some time. talk to people who have great seeks rescission of all agreements between Skechers The company on Thursday ideas. We don’t turn people away.” and Spears, return of all advances paid, reimburse- downplayed reports that an in- One source said Rob Bern- ment of millions of dollars in costs and compensatory vestment group had progressed ard, who was once president of and punitive damages exceeding $10 million. to the due diligence phase. J.Crew and Limited Stores, and The lawsuit claims that the pop star breached her obligations to Skechers under a merchandise license agreement by unreasonably delaying and failing to approve manufacturers, product designs and advertising for Britney 4 Wheelers roller skates and apparel. “When we entered into the Britney 4 Wheelers license with Ms. Spears, we were enthusiastic about the numerous possibilities that would be available to consumers with Britney-branded roller skates and the accompanying apparel and skate accessories,” said a Skechers spokeswoman. “But when the design, approval and advertising process began, we were continuously shut down, rejected or ignored, making it nearly impossible to create and market the skate merchandise con- cept in time for key selling seasons.” The complaint also alleges that Spears and her company fraudulently induced Skechers into en- tering into a tour sponsorship agreement as a con- dition to obtaining the merchandise license. Skechers is being represented by Daniel Petrocelli of O’Melveny & Myers in Los Angeles. “Britney and her people took a lot of money from Skechers and they gave nothing in return,” Petrocelli said. “She allowed us to use her name and Tommy Bahama is looking then did everything to undermine the agreement.” to grow to 100 stores. This countersuit by Skechers follows a law- suit that Britney Brands filed against the compa- “That would be great news, held top jobs at Liz Claiborne ny on Dec. 24 seeking damages for several Skechers is suing Britney Spears for over $10 million. wouldn’t it?” said Tony Margolis, and Macy’s West, was part of a claims, including breach of contract, fraud and one of the owners and founders group, including UBS Paine- trademark infringement. proached them to produce a line of apparel under of the 10-year-old sportswear Webber, considering an offer. Jonathan Solish, attorney for Britney Brands, their own label.” firm. “Actually, I am not aware Asked about that, Margolis told WWD at the time that the lawsuit claims that Michael Friedman, counsel for Britney Brands, any transaction is imminent. replied: “That’s not accurate.” Skechers failed to honor a series of basic agree- said Thursday: “This countersuit is a ludicrous at- We’ve talked to a dozen people Tommy Bahama would attract ments made with Britney Brands. tempt to distract the court and the general public over the last couple of years to a lot of interest. Estimated sales As reported, the lawsuit stated that in from the real issue: Skechers failed to meet their no avail, other than Saunders are around $350 million, and September 2000, Spears’ company signed a deal contractual financial obligations to Spears, they Karp & Megure,” a private equity there’s much growth potential on with Skechers to produce a line of roller skates were unsuccessful in securing appropriate li- the wholesale and retail sides. called Britney 4 Wheelers. In January 2002, the censees to produce the line and completely aban- Assuming the brand carries a high lawsuit said, the company signed another deal with doned their program to support this project. offering price, only a handful of Skechers to find appropriate sublicenses to launch “Skechers’ priority was clearly to associate major apparel firms, such as Liz additional skating merchandise under Spears’ themselves with Britney and leverage her appeal Claiborne, Jones New York, VF or name. According to Solish, it failed to do so. to the lucrative teenage market. However, they Kellwood, could afford it. Finan- “Skechers was supposed to approach Kids failed to live up to their end of the agreement. Ms. cial investment groups, such as Headquarters with the possibility of producing a Spears has already commenced legal proceedings Texas Pacific Group, are another line of children’s apparel under Britney’s name,” to vindicate her rights and we are confident that possibility, though TPG usually he claimed. “Now, we found that Skechers has ap- the court will support our position.” pursues turnaround situations. Tommy Bahama’s Hawaiian- tropical looks are sold at better stores, and widely knocked off. The Island Traders goods stocked at Sam’s Club have a similar look. Apparel, Accessories Sales Fall So does sportswear by Caribbean Joe, which sells to moderate de- By Kristi Ellis falloff [in apparel and accessories industry numbers reflect more partment stores. The collection store sales] is disturbing but not off-price apparel stores, which comprises men’s and women’s WASHINGTON — Consumers unexpected and we do expect are doing better than mall- sportswear and accessories, pulled back on retail spending in most apparel channels to show based stores,” Badillo said. swimwear, footwear and acces- February as threats of war with further signs of weakness as con- Overall, retail sales plunged sories for the home. Tommy Iraq mounted and snowstorms sumers grow more uncertain and 1.6 percent in February, mark- Bahama also has about 30 of its slammed the East Coast, the pull back in the face of war, job ing the largest decline since own stores, referred to as empo- Commerce Department’s retail prospects and dim prospects for November 2001. riums. Some have restaurants, sales tally revealed Thursday. growth,” said Frank Badillo, sen- “The economy is going through though all stores have the beach Sales at clothing and acces- ior economist at Retail Forward. a rough patch and it continues to resort ambience, with soft music, sories stores plunged a season- Badillo noted department absorb bad news, such as the em- ceiling fans, floral patterns, rat- ally adjusted 3.6 percent last store sales held their own on a ployment report and continued tan props and rich colors. month to $14.37 billion against month-to-month basis, due pri- tensions in the Middle East, and The company has headquar- January, and fell 1.5 percent marily to stronger sales from now another report shows that ters in New York and Seattle, and against February 2002. Sales at discounters, which are grouped consumers are staying away from owns Indigo Palms, a Seattle- department stores last month together with conventional shopping malls for whatever rea- A feminine resort look. based men’s denim line planning rose slightly by 0.3 percent to mall-based department stores. son,” said John Mothersole, senior to launch a women’s collection $18.29 billion, while sales at Badillo said there has been a economist with Global Insight. “It firm that took a minority stake in for spring 2004. In addition to general merchandise stores rose “divergence” in same-store certainly adds to the picture of an the business about 2 1/2 years Margolis, Lucio Dalla Gasperina 1.2 percent to $39.1 billion. sales reports, which have shown economy treading water or strug- ago. The deal was brokered by and Bob Emfield are founders. Continuing the pattern of year- a far greater weakness than the gling to maintain momentum.” Financo Inc. They plan to open about 10 stores over-year declines in February, government’s sales figures. Mothersole also noted that “We do have conversations in each of the next five years, sales at department stores “A lot of that has to do with soaring energy prices have hit [with potential buyers] to invest with an ultimate goal of 100 units. plunged 5 percent, while sales at the fact that same-store sales consumers’ pocket books due to or buy, or take our company pub- “It is a hot company,” said one general merchandise stores rose are weighted more toward mall- the threat of war with Iraq, lic, but there is nothing to an- retail chief executive officer. “I 3.7 percent. based stores, which tend to be which in turn has dampened nounce or to justify a conversa- know they are looking to sell it.” “The steep month-to-month public companies, whereas the consumer spending. INC. PHOTOS RODRIGUEZ/GLOBE TOM BY PHOTO SPEARS 4 The Beauty Report Sephora Rolls Out New Format By Brid Costello main displayed alphabetically by brand on shelving that runs along both sides of the store. PARIS — Sephora plans to pack a punch with its new Another break from Sephora’s habitual format retail format, set to be unveiled in early May here. comes with the new perfumery’s skin care department.

WWD, FRIDAY, MARCH 14, 2003 WWD, FRIDAY, It comes amid a stagnant worldwide perfumery mar- Formerly, Sephora consigned the category to the back ket and continuing speculation that LVMH Moët of its stores. Now, however, it is to have a more promi- Hennessy Louis Vuitton, Sephora’s owner, could be nent location, right by the new store’s entrance. sprucing up the 479-door chain for an eventual sale. Neukirch acknowledged treatment is a strong lure The new, 9,150-square-foot Sephora will be on the for consumers. So, too, is the service proffered to sell Rue de Rivoli in one of the former Samaritaine depart- it, alongside other beauty categories, he said. ment store buildings, which is under reconstruction and Trained aestheticians will run the new Sephora owned by LVMH. Compared with other Sephora doors, door’s skin care section, where dermatological diagnostic “Sephora Rivoli” boasts heightened service, including tests and quick, above-clothes massages will be available. an emphasis on new products, skin care, massage and To further facilitate the shopping experience, a rotat- nail treatments, said Francois Neukirch, general direc- ing selection of skin care products will be displayed by tor of Sephora France. In the past, Sephora has built its theme. Antiaging items, for instance, might be grouped to- reputation on the back of its fragrance expertise, with gether on shelving separate from the traditional treat- the category reportedly generating 50 percent of the ment-merchandising units stocking brands alphabetically. chain’s volume. Skin care, however, has proven to be a “We generally treat products by brand, but our ambi- harder sell, because of the store’s self-service format. tion is that everyone, no matter what their age or [eth- “The first vocation of the Rue de Rivoli store is to nic] origin, can find a solution to their needs in our highlight for customers the work of prestige brands, to store,” explained Neukirch. create trends and be fashion [forward],” he told WWD. This new system of merchandising skin care will be in- Many elements of the store’s format were chosen troduced in the chain’s 50 largest stores in France by June. after being tested in Sephora’s treatment-specific The treatment selection will also showcase a broad se- “white” store in the Bercy Village neighborhood and lection of high-end hair care, including brands such as some of its other French doors. John Frieda, Biotherm and Lancôme. Niche names in the Sephora’s next-generation concept store is the last lineup include Alexandre Zouari and Christophe Robin. step in several recent changes for the chain, whose ex- Up on the wall in niches here, some treatment lines ecutives aim to make it positive in cash and operating will be shown in their entirety. profit globally this year. In the new Sephora’s fragrance section, scents’ an- At this point, there are no plans to carbon copy the cillary bath and body lines will get more play, as well. new retail format. “Sephora Rivoli is a megastore, and They, too, will be displayed in niches above traditional we won’t transform all of our stores into megastores,” The new site, to be opened in May. shelving units, while formerly, they were largely stored continued Neukirch. However, elements that work in in drawers. the new location might be adapted to doors in France Sephora’s color cosmetics department will also have and then throughout Europe. The first vocation of the Rue de a makeover. Rather than housing all of its makeup in While Neukirch would only say the upcoming shop “ gondolas, classic brands, such as Chanel and Christian should become one of Sephora’s top five grossing stores Rivoli store is to highlight for Dior, are to be in wall units at the back of the store. in its first year, industry sources estimate it could gen- Trendy brands, such as Hard Candy, meantime, will be erate up to $15 million in retail sales in the period. customers the work of prestige in freestanding merchandising units. To enter the new Sephora door, which is in the base- An area for in-store makeup events will be in the ment, people will descend via an escalator flanked by a brands, to create trends and be heart of the color cosmetics area, as will a nail bar, red carpet. Once inside the store, however, Sephora’s tra- where customers will get free manicures. ditional red carpet is replaced with white marble, chosen fashion [forward]. In the new Sephora store, consumers also will be to brighten the store’s signature black-and-white decor. ” able to sign up for loyalty cards — a first for the chain. Straight on are a series of white tables divided into — Francois Neukirch, Sephora France All of the added services are meant to lure shoppers three categories, which run along the shop’s length. life and change every two weeks or every month as a from the surrounding busy commercial district. Here, The first is to display individual new fragrances, while function of what’s happening.” fast-fashion-brand shops, such as Etam and Zara, are the second will have novel scents grouped by type — for In the last part of the central aisle will be a “fra- located nearby along Rue de Rivoli in the trendy instance, seasonal fragrances or young designer scents. grance initiation” table for consumers to learn about Marais neighborhood, plus new restaurants designed These and events staged to accompany them will be scent and sample its component ingredients. A per- by Philippe Starck and Andrée Putman. The newcom- changed regularly to create excitement, said Neukirch. fumer from a Grasse, France-based fragrance house ers are expected to generate traffic, as is the new “The store will breathe, be very supple and change will oversee the table full-time. Kenzo store, which also is housed in another former very rapidly,” he continued. “The central aisle will add As in traditional Sephora doors, scents here will re- Samaritaine building.

The I-Iman skin I-Iman to Debut Skin Care care collection. NEW YORK — I-Iman, the supermodel’s fashion- forward color line, will premiere its first skin care collection at the end of April. “Skin care is always a necessity, especially for African-American women,” said Iman, president and founder of Impala Inc., the marketing and dis- tribution company for I-Iman Makeup Worldwide, Iman Cosmetics International and Military. The goal was to make skin care products for- mulated for “simple prevention and mainte- nance,” said Iman, adding, that she didn’t want to create another dermatologist-like brand. Iman also took a simple approach to naming the prod- ucts. “The cleanser is called Cleanser,” she noted. in the first year. Each item in the five-stockkeeping-unit collection The I-Iman skin care products contain was formulated to work effectively with the Antarcticine, an organic complex found in the cream-based products in the makeup line. base of Antarctic glaciers. It is said to increase col- Along with Cleanser, a light foaming formulation lagen formation and enhance the formulation of for all skin types that retails for $25 for 4 oz., the col- elastin, to make skin brighter and more resilient, lection contains Tonic, which gently exfoliates to as well as protect it from environmental extremes. remove excess dirt and makeup and is priced $20 The packaging, created in-house, was designed to for 4 oz. There is also Hydrator, which contains SPF reflect a cool look with pale green and white prod- 15 and is designed to absorb oil to give skin a matte ucts encased in clear plastic containers that re- appearance. It retails for $32 for 1 oz. Drench, $32 semble an ice block. The formulations also in- for 1.7 oz., is a heavy cream moisturizer formulated clude green tea extract; aloe vera; vitamins A, E for normal to dry skin. It also contains SPF 15. and C, and grain extracts to help nourish, restore, Rounding out the regimen is Eye Care, $32 for 0.5 regulate and protect the skin’s natural balance. oz. It is formulated for all skin types and designed The products will be sold in the brand’s nor- to eliminate dark circles caused by environmental mal distribution of sephora.com, Sephora doors stress and hyperpigmentation. in cities across the U.S. and Henri Bendel here. Executives declined to comment on sales pro- While no advertising is planned, sampling will jections, but industry sources estimate the col- begin at counters at the end of March. lection could do as much as $1 million at retail — Kristin Finn 5 WWD, FRIDAY,WWD, 2003 14, MARCH Ellen Tracy’s Latest Imagining Estée Lauder’s New Ethnic Mix NEW YORK — Designer Linda Allard believes NEW YORK — Estée Lauder, the world’s second- Lauder brand has a global sales volume of about $2.6 in drawing inspiration largest department store beauty brand, is taking a billion at retail, or $1.5 billion wholesale, with about from all sources when it dramatic departure in its advertising strategy for the half of that business done in the U.S. comes to conceptualiz- first time in its 57-year history by signing its first “It’s an important goal of mine, to surprise the con- ing products — and few African model. sumer,” said Bousquet-Chavanne, who noted that he has projects illustrate that In a bid to modernize the brand for an increasingly a few more surprises in store for the brand. “Going for- point more clearly than multicultural audience, Estée Lauder has signed ward, people might not expect some of the attitude and her latest fragrance, model Liya Kebede as the latest face for the brand. edge you’ll be seeing with the Lauder brand. But I want which is inspired by an Kebede will join Carolyn Murphy, who was signed in to arrest people as they are opening the magazines.” off-hours hobby. September 2001, and Elizabeth Hurley, signed in 1994, Industry consultant Allan Mottus called the move “a When she’s not de- in representing Estée Lauder globally. smart choice for the brand. signing clothing, Allard, Hurley has also just renewed her contract with “It’s good marketing to make everyone feel that who is design director Estée Lauder. While Lauder executives refused to they’re included in the brand, and with this move and for Ellen Tracy, is an comment on any of the terms of any of the models’ several others — including broadening shade ranges to avid gardener — and contracts, sources have been quoted as estimating appeal to a much wider range of skin tones — Lauder Imagine, the newest that Murphy earns about $3 million per year on a is being very inclusive,” he said. “And by bringing in a Ellen Tracy fragrance, three-year contract, and that Kebede’s contract will model of color, it gives the brand more edge.” is inspired by her fa- Don Loftus, Linda Allard and be on a par with Murphy’s. Hurley’s contract was esti- In fact, said Mottus, the move is a “recognition that vorite garden flowers, Nicholas Munafo. mated in the British press to be a five-year, $5 million Lauder wants to widen the appeal of the brand, some- such as magnolia and contract. thing that everyone selling rose. She also dabbles in aromatherapy, something In the past, the brand’s in a department store envi- else she brought to the table with the new scent. all-American-looking lineup ronment needs to recog- “Not only do they smell wonderful, many of the of models has also included nize. People may ask, ‘Why notes in the new fragrance have specific purposes,” Karen Graham, Paulina aren’t ethnic shoppers buy- noted Allard. “For instance, magnolia inspires confi- Porizkova and Willow Bay. ing in department stores?’ dence, rose strengthens the mind and sandalwood Corporately, however, Lau- But if no one’s speaking to calms the mind.” der was one of the first up- them, why should they? The The Imagine juice, by Symrise’s Maurice Rouzel, scale cosmetics companies mass market has already includes top notes of magnolia, violet, ylang ylang to offer a broad-scale multi- realized this — now the and osmanthus; middle notes of rose, cyclamen and cultural campaign with Pre- prestige market has to fol- muguet, and bottom notes of sandalwood, vanilla scriptives in 1984. low suit. I think now that a and musk. The fragrance is packaged in a silver- “Liya brings a lot of major prestige brand like topped oval glass orb, and the juice is tinted pale things to the brand,” said Lauder is reaching out to blue. Imagine’s outer box is comprised of pale blue Patrick Bousquet-Chavanne, women of color, other major side panels and an opalescent white front. group president for the brands will likely follow While Allard and her fragrance partner, Cosmo- Estée Lauder Cos. “Not only suit. This could help the en- politan Cosmetics, already have one Ellen Tracy is she helping us to a com- tire department store cos- scent on the market, Allard doesn’t see any cannibal- municate with a wider audi- metics business.” In addi- ization between Imagine and the original fragrance. ence as our first ethnic tion to broadening its reach “They’re different scents for different moods,” said model, she also brings a among African-American Allard, noting that the original Ellen Tracy scent is a fashion edge to the brand. consumers, Mottus noted warm, spicy oriental, while Imagine is a multilay- She is a universal beauty that the brand also is reach- ered floral. who transcends ethnicity ing out to the Asian market Don Loftus, president and chief executive officer and age, and she connects to with new shades. of Cosmopolitan Cosmetics, agreed. “The original the brand on an emotional “Signing Liya opens up a Ellen Tracy scent, launched in 2000, is our largest level. We believe consumers world of possibilities for the single scent,” said Loftus. “We’re looking for a simi- will respond to that.” brand,” said Aerin Lauder, lar success with Imagine — our aim is to be in the Bousquet-Chavanne said vice president of global ad- top 10 in the doors we’re in.” that signing Kebede is a vertising for Estée Lauder, The Imagine collection includes eau de parfum continuing evolution in the who noted that Kebede sprays in three sizes: 1 oz. for $40; 1.7 oz. for $48, and brand-renewal effort, which would broaden the brand’s 2.5 oz. for $68, and two ancillaries, a 6.7-oz. body lo- began more than a year ago. reach “to consumers of all tion for $38 and a 6.7-oz. body wash for $35. It will A number of initiatives ethnicities.” The trio, as a launch first in April at Macy’s East — which intro- have been aimed at fresh- group, “all embody the mod- duced the first Ellen Tracy scent — followed soon ening the venerable brand, ern Estée Lauder woman, after by Marshall Field’s, Rich’s, Foley’s, Macy’s including a new salon-style who is a consumer of many West and The Bon Marche, for a total of about 450 counter design that made different ages and ethnic doors in the scent’s first launch wave. In mid-August, its debut at Bloomingdale’s groups. We wanted to reflect the scent will roll out to additional department and last year, as well as last Liya Kebede and Aerin Lauder. that in our spokeswomen.” specialty store doors, for a total of about 850 U.S. spring’s launch of Pure As the brand was choos- doors when distribution is complete. The original Color, a color cosmetics line with modern-looking clear ing its third model, Kebede’s face kept reappearing do- Ellen Tracy scent is in about 1,200 doors. packaging. “We’re thrilled to report that the new initia- mestically and internationally, said Lauder, and “we A national advertising campaign is planned, tives are showing results on a global scale,” he said. thought she was a perfect match for the Lauder sensi- noted Nicholas Munafo, senior vice president of “The renewal process is beginning to deliver dividends, bilities.” Kebede and Murphy also share an agency, marketing, training and public relations for and we’re becoming more confident of the impact on IMG, and an agent. Cosmopolitan Cosmetics. It will include national younger consumers. We plan to continue maintaining The company has done several test ads with Kebede print advertising featuring model Paulina Porizkova the pace of the Estée Lauder brand with our building — one for foundation and one with lipstick — but the breaking in the April issue of Vogue, as well as 70 blocks, including packaging design, in-store environ- brand is still in the process of finalizing advertising for million scented pieces and 125,000 deluxe samples. ment and, of course, our advertising campaigns.” the remainder of this year, noted Lauder, who said that While none of the executives would comment on When asked if Lauder would sign additional ethnic consumers would “see Liya everywhere by spring 2004. projected sales or advertising spending, industry models to expand the brand’s reach in other areas, It’s not a set formula yet, but all three of our models sources estimated that the Imagine lineup would do Bousquet-Chavanne laughed and said: “Let’s let Liya will be everywhere next spring,” said Lauder. upward of $25 million at retail in its first year on get settled first.” “The three models will all have their full place in counter and that between $12 million and $14 mil- However, expanding the brand’s reach among the our strategy, although we can’t give full details yet,” lion would be spent on advertising and promotion. lucrative ethnic market would be a market-building added Bousquet-Chavanne, “although Liya will first be — J.N. move for a brand whose chief is on a building spree. featured this fall on a global basis.” While market studies vary, the African-American mar- Kebede, originally from Addis Ababa, Ethiopia, has ket is said to account for at least 19 percent of cosmet- also appeared in print advertising for Tommy Hilfiger Ellen Tracy’s ics sales annually, as well as more than 34 percent of and Revlon, and has appeared in runway shows for Imagine. hair care product sales. Ralph Lauren, Marc Jacobs, Michael Kors, Gucci, Yves Bouquet-Chavanne, who assumed control of the Saint Laurent and Balenciaga. brand in the reorganization of Lauder’s senior man- Hurley’s new contract marks the beginning of her agement in May 2001, has been, as reported, not only ninth consecutive year representing Estée Lauder. deemphasizing the brand’s former promotion-driven Hurley appears primarily in Intuition fragrance adver- strategy, but also looking for new volume potential for tising — including a new campaign that breaks globally the brand — including strengthening its relevancy in April fashion, beauty and lifestyle magazines — and among younger consumers, particularly those in the travels with Evelyn H. Lauder, senior corporate vice 25- to 35-year-old age group. president of the Estée Lauder Cos., to raise awareness While brand is estimated to be number two in de- for the Breast Cancer Research Foundation, founded partment store sales to its corporate sister, Clinique, by Lauder. Bousquet-Chavanne has often stated that his goal is to “Great faces sell great products,” said Leonard A. bring the flagship brand of the cosmetics giant back to Lauder, chairman of the board for the Estée Lauder the top slot. While the publicly held cosmetics firm Cos., in a statement. “I am delighted with the direction doesn’t break out the sales figures of individual the brand is taking with this announcement.” brands, industry sources estimate that the Estée — Julie Naughton LINDA ALLARD EXECUTIVE PHOTO BY DAVID TURNER DAVID BY PHOTO EXECUTIVE ALLARD LINDA 6 The Beauty Report Revlon’s 4th Qtr. Losses Widen

Continued from page one Looming over whatever actions the firm The quarter’s results were dragged down by Revlon’s growth plan calls for takes is its considerable debt, the long-term charges of approximately $100 million from increasing the effectiveness portion of which stood at $1.75 billion at the the firm’s growth and restructuring plan. The end of the 2002, a 6.5 percent rise from a year WWD, FRIDAY, MARCH 14, 2003 WWD, FRIDAY, of advertising and promotions. sum went toward selective product rationaliza- earlier. So far, Revlon’s received significant tion and pricing adjustments on several prod- financial support from its primary share- uct lines. Up to $60 million in similar charges holder, Ronald Perelman, through his wholly could be taken over the next two years. owned MacAndrews & Forbes Holdings. Sales for the three months ended Dec. 31 Last month, as reported, Revlon entered fell 33.9 percent to $212.6 million from $321.7 into an investment agreement with million a year ago. The top-line drop reflected MacAndrews, which includes a $100 million a $132 million increase in returns and al- term loan, a $50 million rights offering and a lowances in the most-recent quarter, related to $40 million line of credit that increases to product rationalization, reduced distribution $65 million in 2004. of the Ultima brand and pricing adjustments. For the full year, losses grew to $286.5 Revlon’s growth plan calls for increasing million, or $5.49 a share, from $153.7 million, the effectiveness of its advertising and promo- or $2.94, in 2001. Sales over the 12 months tional spending as well as its in-store wall dis- slid 12.4 percent to $1.12 billion from $1.28 plays, discontinuing some products and billion during the preceding year. tweaking prices on others while also investing Industry consultant Allan Mottus, noting in training and development of employees. the firm’s focus on its marquee brand, said “We have accomplished a great deal in the Revlon’s become “a niche player, as opposed past year,” said president and chief executive to a global beauty company. Maybe the best Jack Stahl on a conference call. “Obviously, thing that’s happened to Revlon is that we recognize that there’s a tremendous L’Oréal and Procter & Gamble are going amount of work still to be done.” after one another and are not trying to take Stahl joined Revlon, already in the midst of a mas- While Revlon’s investors and debt holders have Revlon out at this moment. sive turnaround, just over a year ago from Coca-Cola. been waiting for a turnaround for some time, Stahl “Time is not working for them, it’s working against Reflecting on his time at the helm so far, Stahl told said progress is being made. “We continue to gain trac- them,” he said. “They need product success stories WWD in a telephone interview, “We have a wonderful tion in the marketplace in the form of increased con- quickly now.” brand that is proving to be very responsive to good mar- sumption of our brands and market share growth.” Competing vendors have also been quietly contem- keting and at the same time our customers have been North American gross sales picked up 9.7 percent to plating space increases at retail as Revlon’s fortunes very willing and ready to work with us as we step up $291.5 million. However, international sales inched up have waned, according to sources. No doubt, the con- the overall marketing pressure against our business.” 0.6 percent to $125 million, up 4 percent before the im- templation has turned to salivation as the industry di- Currently, Revlon is in the second phase of a three- pact of foreign currency translation. gested the firm’s results for 2002. part turnaround. The first phase, characterized by cost The firm’s overall market share of mass color cos- Revlon’s standing pat, though. “We are pleased with rationalization through the consolidation of manufac- metics rose 1.7 share points to 23.6 percent. The the initial results that we’re seeing in the market turing and reduction of overhead costs, was largely com- Revlon brand picked up 2.2 share points for the quar- place,” said Stahl on the call. “To drive the profitabili- pleted in 2001 by Stahl’s predecessor, Jeffrey Nugent. ter to 18 percent, while the Almay brand’s market ty of a consumer-branded company, you’ve got to start For the last year, Revlon has been in the investment- share fell 0.1 share points to 5.4 percent. with the consumer and I think we’ve made a tremen- intensive “stabilization and growth” phase of its plan, “Our focus, actions and marketplace investments, dous amount of progress over the past year in under- where it still toils, as seen in the fourth-quarter charges. which began in the second half of 2002, have created standing the consumer, testing our market strategies, In stage three, or the “accelerated growth” phase, the necessary platform for us to further strengthen the calling out required investment that’s going to drive Revlon hopes to take advantage of all recent adjust- business in 2003 by improving the in-store experience the growth, securing funding around these strategies ments and kick its business into high gear. with our customers and for our consumers,” said Stahl. and getting great support from our retail partners.” Forget the Hallmark, Send a Scent Sonia Kashuk Sets Out NEW YORK — Looking for a different way to send a greeting? Soon you’ll be able to say it with a scent. On Five-City Book Tour After a successful six-month test with Wal- Mart, Walgreens and Meijer, a Long Island- NEW YORK — Sonia based fragrance firm is introducing Kashuk will be talking Scentiments, an eight-item collection that is beauty tips with the part gift, part greeting card. literati. Gift-givers can select from Happy Birthday, Next month, the cre- Kisses, Happy Day, Friends Forever, Hello, ator of Sonia Kashuk Many Wishes, Thinking of You, and Just For You. Professional Makeup will Each outer carton is designed to reflect the re- Selections from the Scentiments collection, including make appearances in spective sentiment — Happy Day is light blue “Happy Birthday” and “Kisses.” bookstores in five cities with a sun and flowers and Kisses is white with to promote her book red lips. On the back of each box, there are To: Wishes, kiwi mango; Thinking of You, fruity “Real Beauty,” which and From: spaces and a thoughtful message, fresh floral; Just For You, garden of many flow- made its debut this such as “May you always have a smile on your ers, and Hello, playful floral. month. The book uses face, and laughter in your heart” for Happy Day Most of the artwork and poems were created celebrities and beauty in- and “Love begins with a smile, and grows with a by Richman and Merissa Smith, vice president dustry insiders as models Kashuk tapped her beauty industry kiss” on Kisses. The 1-oz. fragrances have a sug- of operations. to demonstrate makeup friends as models for her book. gested retail price of $10 each and will roll out Richman is predicting sales of $20 million applications and tech- this summer. wholesale, which could register $40 million at niques. Debra Winger, Cindy Crawford, Christy Turlington Deborah Richman, chief executive officer retail. An advertising plan is in the works with and her two sisters, Tara Lipinski and beauty editors from and creator of Scentiments, has been in the fra- an estimated budget of $2 million and will in- Vogue, Harper’s Bazaar and O, The Oprah Magazine, are grance industry for 20 years. The company also clude print and possibly radio and cable TV ads. among the numerous women who show off results of their markets the Lady in Red, Lady in White, ID and “We are looking at what would be most effec- face time with Kashuk. Club Red Brands. tive,” said Richman. Written with author Amy Valentine, the book also con- “It is an easy and sentimental gift,” comment- The fragrances can be displayed in the greet- tains thoughts from experts on skin care, foot and hand care ed Richman, who said retailers are always ask- ing card aisle in shelf displays that contain six and life issues like the importance of finding balance. ing for something new for the fragrance depart- bottles and also in the fragrance department. Kashuk kicks off the tour at Brentano’s at the Beverly ment. “We came up with the idea of fragrance Richman said the test retailers have been mer- Center in Los Angeles on April 3, followed by stops in greetings.” chandising more than one display per aisle. Dallas, Chicago and Miami, ending at Barnes & Noble on The individual Scentiments juices are based “They have been putting six to eight to 12 units East 54th Street in Manhattan on April 25. Before setting on “bath and body-type fragrances,” she said. All per store,” she remarked. out, she meets with Target employees in Minneapolis on are light floral or fruity to appeal to a wide audi- The eight scents have been whittled down March 27. The book is available at Target and chain book- ence. The company worked with several fra- from an original 18. Of these, all are “good sell- stores nationwide. grance houses to design the lineup, which it de- ers” and four are “great sellers,” said Richman. Target is the exclusive retailer of Kashuk’s beauty prod- scribes as follows: Kisses, plumeria; Friends Test stores have been logging sales at the rate of ucts, which include color cosmetics, fragrance, facial skin Forever, pearberry; Happy Birthday, floral cele- eight bottles a week. care, body care and cosmetics bags. bration; Happy Day, uplifting floral; Many — Laura Klepacki — L.K. SCENTIMENTS PHOTO BY KYLE ERICKSEN KYLE BY PHOTO SCENTIMENTS 7 WWD, FRIDAY, MARCH 14, 2003 EICHNER STEVE BY PHOTOS COTY French Revlon’s Red Carpet Bag Red Revlon’s ROBERTET RESULTS: house fragrance and flavors 2002 sales of Robertet posted The Helena Rubinstein boutique in SoHo Aramis is attempting to cash in on the Revlon was Cosmetics packaging firm Techpack has Cosmetics packaging firm Techpack Babor Cosmetics USA, the U.S. subsidiary of Nu Skin has entered into an agreement with Nu Skin has entered into an agreement Howard Murad, the El Segundo, Calif.-based Prescriptives will introduce Eyelash Curler $225.9 million, up 2.1 percent over the previous year. At constant year. up 2.1 percent over the previous $225.9 million, the growth would have been 5 percent, rates of exchange, preliminary a statement. Robertet also announced company said in million, up 8 percent year-on-year. net profits of $14.6 NU SKIN DEAL: Cosmix to develop ingredient German pharmaceutical company care products. “Our research technology for Nu Skin personal Nu Skin to continue to provide agreement with Cosmix will help loyal customers with a pipeline our global distributor force and said Lori Bush, president of scientifically advanced products,” in 1997 by John Collins, an of Nu Skin. Cosmix was founded and molecular biology. inventor in the field of gene technology a market leader in the mission is to become Cosmix’s sciences, it said in a statement. development of peptides for life IN 3D: TECHPACK and design firm, to create teamed with Nexvisions, an imaging stock packaging Techpack’s three-dimensional graphics for graphic elements, a process offerings. By combining multiple appearance of a three- known as Lenticular imaging, the within a two-dimensional dimensional image can be achieved visual, according to Techpack. NEW DIVISION: Babor GmbH & Co., has Aachen, Germany-based Dr. appointed Michael Cutler national director of a newly formed division called fashion cosmetics group. Babor created the business unit to focus on distribution of the Babor skin care brand within the U.S. specialty store channel. Cutler was most beauty business. Babor is recently area manager for Escada’s currently carried in limited day and destination spa include duties will distribution in the U.S., but Cutler’s targeting independent specialty boutiques. CARPET BAGGING: thinking big when it packed its goodie bag. No fewer than Oscar’s 50 Revlon items, including samples of its new Always On nail enamel fill the red and Overtime Lipcolor, petit point-embroidered bag, which is being given to Academy Award nominees and presenters, along makeup artists and with the show’s stylists. Prestige Cosmetics is also getting into the act this year adding samples of its Lip Concentrate lip color to the official is attendees. And Avon “Goodie Bag” received by the show’s the exclusive skin care sponsor for The Cabana Beauty Buffet, essentially a beauty retreat for nominees and attendees. Held at The Chateau Marmont in Hollywood on March 21 and 22, an array of skin care, cosmetics, jewelry and accessories will be featured. Avon will sample its ANEW skin care brand and its aesthetician, Sasha, will provide facial treatments. DERM BOOK: dermatologist who markets an eponymous line of skin care products, is launching his first book, called “The Murad Method” Press). The volume outlines a five-week program (St. Martin’s health while addressing Murad’s designed to improve the skin’s three antiaging and feel-good “core principles.” The same day missive hits book stores, April 1, a new Murad product Murad’s Suit — a nutritional supplement aimed at called Wet maintaining water levels within skin cells — is slated to bow. COOL CONCOCTION: summer scent craze with Aramis Cool, a limited-edition, the first summer scent lighter version of Aramis Classic. It’s brand and it features top notes of for the Estée Lauder-owned citrus and “cognac sparkle;” heart notes of juniper and rum, and base notes of sandalwood and patchouli. Aramis Cool will bow May in Aramis’ full complement of 2,000 department store doors, including Nordstrom, Neiman Marcus, Saks Fifth A 3.4-oz. bottle will retail for $39. West. Avenue and Macy’s DESIGNS DISPLAYED: hosted spring trunk shows for two accessories designers, Jemma Lulu and Leslie Hsu, and low-rise panty marketer Lilo jewelry, over the weekend. While customers perused Lulu’s handbags and Lilo — which was created by celebrity Hsu’s fashion stylists Nancy Kantor and Jamie Kimmelman — they could also opt for free makeup and skin care consultations. Roughly 200 beauty consultations took place during the three-day event, and the designers reaped an estimated total of between $18,000 and $20,000 in combined sales volume. THE BENDS: Shaping Mascara this month at all of its U.S. and Canadian counters, or about 800 doors. The product, which is billed a mousse-like mesh formula designed to provide volume around each lash, features Shape Memory Complex for enhanced curl and a Double Combing Brush for bend, separation and fullness, the company says. Eyelash Curler Shaping Mascara comes in two shades, black and black/brown, and retails for $17.50. TOP TOP NOTES — Julie Naughton Julie — Markwins is already transparent paint can full of nail care items under logo. Wild ‘n’ the Wet 52-week period ended January 27, 2003 — an im- pressive feat considering it is one-third the price of most nail colors. Still, Wet ‘n’ Wild has lost valuable market share. According to IRI, its total sales fell 6.3 percent to 69 million, Wal-Mart. excluding working to burnish AM’s image. most “Although AM programs for the second half are already in place, we were able to create some items for the holi- days,” said Shawn Haynes, vice president of market- ing and sales for Mark- wins. example, “For we have some of our typical quality Markwins sets with AM-branded items.” One item he described is a Markwins hopes to avoid the ob- Plans call to continue to distin- pany prior to joining Markwins. stacles AM encountered in owning the top two budget brands, as well as two major players in ethnic cos- metics, Black Radiance and Tropez. In turn, Thoreux credited his team: “The reason In addition to his longtime career as a packaging a nice Jewish boy like me is becoming a “Finally, Not included in the deal is Lord & a Berry, salon- Although Markwins has a stellar reputation for its Haynes is based at AM’s former headquarters in Thoreux with the award. “Eric is a true visionary.” I am standing here tonight is thanks to the talented people I work with every day at he Coty,” said. “This award is their award.” designer, Rosen is a professor and trustee at Pratt Institute and has taught graduate-level courses there for about 20 years. The scholarship fund’s grand total has now topped $600,000, noted Thomas Schutte, F. president of Pratt Institute, adding that more than 80 percent of the school’s students are on scholarship. Schutte announced at the dinner that Rosen is being given an honoraryyear. doctorate by the school this cracked. Rosen doctor,” guish Wet ‘n’ Wild and Artmatic by distribution with Artmatic being expanded in international doors and value-oriented stores. Black Radiance will continue to be marketed to African-American women, with Tropez appealing to women of Hispanic or Asian descent. inspired line acquired from Grant Berry. Lord & Berry is owned by a third-party investor who tains the distribution rights. main- kits and promotions, acquiring AM is crucial for its future growth since the company needed an avenue to get onto the peg wall. Under the ACT label, a color cosmetics peg collection introduced last year has been slow to take off, according to company officials. AM, Markwins has instant access to thousands With of retail walls. North Arlington, N.J., where he hopes to oversee a “seamless” transition. Markwins tapped Haynes, the founder of the trendy Girl cosmetics, to help the compa- ny launch its own line of open-stock cosmetics. “As were working we on that, this deal came along and was per- fect for me,” said Haynes who sold Girl to a private com- CriticalMass Brookman Faye By A new promotion from Wet ‘n’ Wild. A new promotion from Wet Retailers Coty’s top management is evidently a

The company’s top brass — from chairman are honoring a “You dear friend, a man who has Although Wet ‘n’ Wild maintained its distribution AM had to bring its portfolio of brands under one Long the dominate budget brand, ‘n’ Wet Wild’s “It is great to see AM brands get the support they Sources at leading Markwins, based in City Last Thursday, Last Mark- Thursday, Bernd Beetz, Eric Thoreux and Marc Rosen; Peter Harf, his wife, Sasha. and John Galantic with Peter Bernd Beetz, Eric Thoreux and Marc Rosen; Coty Beauty’s Thoreux Honored at Scholarship Dinner Peter Peter Harf to chief executive officer Bernd Beetz to John Galantic, president, U.S. beauty — turned out in force to support Coty Beauty’s president of the Americas, Eric Thoreux, who was the honoree at Pratt Institute/Luxe Pack Monaco’s 14th annual Art of Packaging dinner night. Wednesday Held at the University Club and hosted by model Carol Alt, the dinner, which drew 350 people, hauled in a record $225,000 for the Marc Rosen Scholarship Design at Pratt Institute. for Graduate Package helped to shape the company in the past 10 years,” said Harf as he and Maisonneuve, Pierre-Yves president of Luxe Pack Monaco, presented NEW YORK — package deal. ,which exceeds 30,000 doors, its grasp on the market was threatened with new brands such as Del Laboratories’ NYC New ‘n’ Wet Color. Wild, York still however, squeaks into top-10 selling lists. According to Information Resources Inc., ‘n’ Wet Wild held the 10th fastest-selling position in dollars in food stores with sales of almost $3 million of the corporate umbrella. The physical stress of pulling disparate inventory and marketing systems under one company damaged AM’s operations. popularity started to decrease after AM Cosmetics en- countered growing pains created by buying up too many niche brands. Not only Wild, did ‘n’ AM own Wet it also owned the main budget competitor — Artmatic. need,” said Valerie Cheyney, buyer for need,” Cheyney, Happy said Harry’s,Valerie who added that Markwins has been a great supplier. Another buyer at a major chain said that without a company the caliber of Markwins stepping up to own AM, she was ready to eliminate or cut Wet ‘n’ Wild from her planograms. Markwins programs of train cases and color kits have been especially popular at holi- day seasons and one of the few growth areas for many chains. mass-market chains said the deal injects new life into the beleaguered AM brands, while giving Markwins an avenue for further growth. of Industry, Calif., is a of man- Industry, marketer ufacturer, and distributor of cosmetics and beauty products under names such as The ACT, Color and Workshop The Color Institute. Along with AM ‘n’ Wild, owned Wet Black Radiance, Tropez, Jonel and Artmatic. wins completed the trans- action for an undisclosed price that gave it instant access to the leading bud- get brand in mass cosmet- Wild. ‘n’ ics, Wet greeted last week’s an- nouncement that Markwins International Corporation inked a deal to purchase brands from AM Cosmetics with enthusiasm. Retailers Cheer AM Sale AM Cheer Retailers NEW YORK — 8 HBA Report Taste of Hungary Packs Punch SNIPPETS By Andrea M.G. Nagel GOING, GOING, GONE: While Procter & Gamble nixed the Vidal Sassoon hair care line from consumer NEW YORK — Spa products are the latest culprits to blur the line of originality. consumption in the fourth quarter of last year, Vidal How many more seaweed-infused body scrubs does the industry need? But one Sassoon afficionados could still buy their favorite regimen — imported from Hungary — is standing apart from the pack by requir- product from one of 25 Vidal Sassoon salons ing a true hands-on approach from aestheticians. internationally. Not anymore. Beginning in June, Eminence Organics Skin Care, a just-add-water treatment line comprised

WWD, FRIDAY, MARCH 14, 2003 WWD, FRIDAY, Wella branded products will replace all Vidal mostly of formulas in concentrate form, is finding its way into a handful of Sassoon hair care products in salons, according to spas across the country. Annie Humphreys, international director for color Created by Ilcsi Molnar in 1958 — based on her grandmother’s herbal ritual’s and technical research for Vidal Sassoon. — Eminence packs as much as five pounds of fruit in each 8.4-oz., professional- Humphreys added that the move should be an easy sized jar. The fruit formulas, which contain no added water, are combined in a one since Vidal Sassoon salons already stock the honey and lemon base with fruit pectin, and are preserved by salicylic acid. This German hair care company’s color products. The combination means aestheticians must dilute the product. In fact, aestheticians move marks the end of a 30-year product legacy. are given a “principals of dilution” list explaining different ways to water down such Eminence items as the Sour Cherry Masque, the Quince Apple Masque and TAKE A BOW: Winners of this year’s the Pumpkin and Orange Masque. behindthechair.com style awards were announced Depending on skin type, Eminence suggests diluting formulas with herbal teas, last Sunday night at the Roseland Ballroom. Chosen juices or water at varying temperatures. For sensitive, inflamed, acne-prone skin, by the salon industry’s 75,000 members, winners Eminence recommends a dilution of chamomile tea at a cool temperature. Oily- included: TIGI Catwalk Oatmeal & Honey for favorite to-normal skin requires either warm peppermint tea or a lemon juice dilution. shampoo; Matrix Biolage Conditioning Balm for Sensitive skin can stand to benefit from an orange juice with banana dilution, and favorite conditioner; Matrix Amplify for best mature, dehydrated skin requires a lavender tea or grape juice concoction. volumizing products; Artec Color Eminence makes nearly 50 different products for the face and body. While Shampoos/Conditioners for favorite color-enhancing some require dilution, other products are ready to use, such as an extensive products; Joico K-Pak for favorite deep or restorative line of whipped-cream moisturizers. These creams contain fruit juices in a conditioner; Paul Mitchell Sculpting Foam for natural, neutral base, which are whipped until the consistency of a soufflé. favorite styling gel, lotion or mousse; Sebastian According to Boldijarre Koronczay, an Eminence brand manager at the com- Shaper Plus for favorite hairspray; TIGI Bedhead pany’s North American headquarters in Vancouver, Eminence’s founder want- Manipulator for favorite specialty styling product; ed to revolutionize spa products in her native Hungary to better reflect the TIGI Bedhead Superstar for favorite new product, country’s natural resources. Koronczay said Molnar, a trained aesthetician, liquids; Redken Rough Paste for favorite new borrowed many of the elements used in Eminence from her grandmother, an product, styling; Robert Cromeans for favorite herbalist healer. It seems Molnar was displeased after learning that many platform artist; and Redken Fifth Avenue for best products made in Hungary contained artificial ingredients. overall professional products company. Eminence first emerged in the U.S. four years ago. Now, the company’s prod- ucts are used and sold in a smattering of U.S. locations, such as the Golden Door NEW FACE: Redken has repackaged its entire hair Spa in Puerto Rico, the Boca Raton Resort & Hotel and select Ritz-Carlton ho- care line; shampoo bottles are now see-through and tels. In Manhattan, Eminence is used and sold at Tracie Martyn Salon, conditioner containers are now opaque. Redken’s Completely Bare Spa and Splash at the Sports Club/LA-New York. Some of the Extreme line — a five-item regimen designed to spas that offer Eminence treatments also sell Eminence in 2-o.z. consumer- treat damaged hair — has also been tweaked. friendly sizes. Eminence retails between $30 and $80; concentrated formulas Formulas now use a patented 3D Repair Complex to come with dilution instructions. Internationally, Eminence is sold in Canada, fortify hair. Extreme Fuel, a rinse-out treatment the United Arab Emirates, the Czech Republic, the Ukraine, Poland, Germany designed for highlighted and bleached hair, has and Hungary. U.S. retail sales are estimated between $4 million and $5 million. replaced a former treatment, and CAT, an existing One of Eminence’s more popular spa treatments, according to Anna Gleichauf, protein reconstructing spray under the Redken the front-desk retail manager for Completely Bare Spa in Manhattan, is the umbrella, has been added to the Extreme collection. Paprika Facial. It starts with an apple-based alpha-hydroxy mask, followed by a The new Extreme line rolls out to salons during the paprika mask, which draws blood to the surface of the skin, Gleichauf said. The next several weeks. Paprika Facial at Completely Bare costs $250 for a 90-minute service and is not available for consumer consumption “since it is such a strong treatment.” COLOR ME HAPPY: Brad Johns and Frédéric Fekkai Eminence’s pull-no-punches treatment approach is also what appealed to are launching color extender shampoos this spring. Christine Borkenhagen, Splash spa manager, at the Sports Club/LA-New York. “I Fekkai’s line will include Rio Red and Brilliant wanted an organic line that was more aggressive. Many organic lines are really Brown, joining his existing Baby Blonde color- gentle and don’t give the results a user wants to see,” Borkenhagen said. enhancing line. Brilliant Brown is formulated with a While the company is always looking to expand distribution, Eminence’s Eminence includes foaming, creams, blend of natural coffee beans, caramel and henna growth will remain very selective in upscale salons and spas. “It is very unethical whipped creams and masques, the latter flowers, and is designed for brunettes. Rio Red for us to sell this type of product in a store. I don’t believe in it,” Koronczay said. of which requires dilution by the user. contains plant-based colorants, beet extracts and henna and is meant for red heads. Each 8-oz. container retails for $20. Brad Johns is adding three color-enhancing shampoos and conditioners to his existing Colorsave M.D. Skincare Gets Facelift, Turns to Body line. Each item is fortified with sea algae, amino acids, and sunflower oil. The new products will be NEW YORK — Dermatologist Dr. Dennis Gross has given double in 2004, according to industry estimates. available next month at the Brad Johns salon his M.D. Skincare line a facelift. Gross, who has researched skin cancer at Memorial located within the Avon Salon & Spa, and on The 15-stockkeeping-unit assortment has been com- Sloan-Kettering Institute and New York University Medical avon.com. The 6.7-oz. containers will retail for $20. pletely redesigned and it is slated to bow in new packag- Center, began a private practice 12 years ago. Before long, ing in May. Coinciding with the new-look debut is the he found that professional face peels could be “irritating,” FOLLOW THE BOUNCING BALL: The use of exercise launch of three new products, one of due to ever-increasing concentrations balls has made its way into workout regimens across which is a body peel inspired by The new look of of glycolic acid administered during the country. The latest comes from The New York Gross’ core face peel. treatment regimens. Gross therefore M.D. Skincare and Health & Racquet Club in a class called Body New silver-and-white packaging fea- began tinkering with peel formulations its new body peel. Fusion. Instructed and designed by Russian tures an orange shade that’s more vivid that had lower levels of several acids gymnast Dina Kozitskaya, Body Fusion incorporates than the existing orange hue. The goal and, in the mid-Nineties, launched his gymnastics with core stabilization, flexibility and was visual “pop,” a “slick, upscale” ap- first product, Alpha-Beta Daily Face strength-training techniques. pearance and a more prominent logo, Peel, which he sold in his office. The one-pound ball, which in Kozitskaya’s class is according to Mary Leber, president of Today, the Daily Face Peel uses a the size of a volleyball, is used throughout the 50- M.D. Skincare. Plans call for the re- cocktail of alpha hydroxy, beta salicylic, minute workout. During warmups, students hold the vamped products, once they are ready, citric and malic acids. “The skin does ball and move it in circles, twisting from side to side. to replace items in current distribu- better with multiple acids at a lower To exercise legs, students are instructed to hold the tion. After being swapped out, existing concentration,” Gross claims. The same ball firmly between their knees for squatting and deep products will likely be sold through “less-is-more” philosophy was applied knee bends. The ball is also used for floor exercises, mdskincare.com. to his later products, which formally helping train glutes and abs. The low impact workout M.D. Skincare is also jumping from made their debut under M.D. Skincare is set to the music of Cirque du Soleil’s “Quidam.” the face category — historically the in 2000. Items in the line often feature Body Fusion is offered at NYHRC’s 23rd Street brand’s primary emphasis — into the body care arena multiple functions — like All In One Facial Cleanser With location every Tuesday at 5:45 p.m. by launching Alpha-Beta Daily Body Peel in May. The Toner, which is designed to both cleanse and tone. item includes 30 two-step treatments, or 60 pads split The line is carried in about 500 spa doors. The brand EASY DOES IT: The Metamorphosis Day Spa, located between two jars, for $78. Then, in June, the brand will also markets a range of seven sku’s designed for use by on 127 East 56th Street, has implemented software introduce a 6.7-oz. tube of Shower Gel, $38, and an 8-oz. aestheticians, including a peel, cleanser and tinted mois- that allows for online booking. The new technology pump of Body Serum for $45. turizer. Additionally, 80 or so retail stores, including makes making reservations — and even paying — a Sources speculate that the trio of body launches Nordstrom, Bergdorf Goodman and Fred Segal Essentials, talk-free process. The new tool allows clients to could reap $18 million in first-year retail sales volume. carry the retail collection. Leber plans to add about 200 book appointments 24 hours a day, seven days a Separately, total M.D. Skincare sales volume is expected doors to M.D. Skincare’s distribution network by yearend. week. The spa expects to add the service to its Web to pass the $20 million mark this year. That figure could — Matthew W. Evans site, www.metspa.com, later this month. 9 Profits, Shares Soar Scaasi Branches Out FRIDAY,WWD, 2003 14, MARCH By Lisa Lockwood At Urban Outfitters A rendering of the NEW YORK — Arnold Scaasi, Arnold Scaasi- By Jennifer Weitzman said. “I don’t see a lot of strong fashion designer, Fashion Insti- designed garden trends in the home business, un- tute of Technology professor retreat for Grand NEW YORK — With tiered skirts, like women’s and accessories.” and now gardener? Beekman in New York. T-shirt and cargo pants must-have The company also plans to Scaasi is in the midst of cre- items for today’s younger women, increase its marketing efforts to ating a 702-square-foot garden Urban Outfitters Inc. delivered include a small catalog drop this retreat for Grand Beekman, a double-digit profits and sales in- month for Urban Retail and has luxury condominium residence creases in both its fiscal fourth slated another drop in mid-year. that opened this week at 400 quarter and year and watched its For the year, income surged East 51st Street here. He will stock skyrocket at a similar pace. 82.7 percent to $27.4 million, or design a tranquil oasis for the Furthermore, the Philadel- $1.41 a diluted share, versus in- residents of the 32-story condo- phia-based specialty retailer in- come in 2001 of $15 million, or 86 minium that will feature lush dicated spring sales are expect- cents. Sales for the 12 months fat- greenery with floral accents. ed to blossom with the weather. tened 21.1 percent to $422.8 mil- “It’s my new career,” said With one analyst on a morn- lion from $349 million. Comps Scaasi, a longtime resident of ing conference call describing gained 9 percent, consisting of a 7 Beekman Place. “I’m always the results as “simply fantastic,” percent rise at Urban and a 12 adding something.” Just last investors drove up shares of UO percent increase at Anthro- month, Scaasi taught an hour-long $3.82, or 20.8 percent, to close at pologie. Direct-to-consumer sales course at FIT here, as reported. $22.22 in Nasdaq trading Thurs- grew 27.9 percent to $31.7 mil- An avid gardener, Scaasi said day. UO benefitted not only from lion, while Free People sales he has a “wonderful garden on its own strong showing but from were flat at $18.3 million. Long Island” that he has been the overall markets’ best per- cultivating for 20 years, as well formance since the start of the AEROPOSTALE as “a spectacular garden in my year. The Dow Jones Industrial Aeropostale closed out its house in Palm Beach.” This is Average rose 269.68 points, or 3.6 first full year as a public compa- his first professional garden de- percent, to 7,821.75, and the ny with solid results. sign assignment. Standard & Poor’s Retail Index For the three months ended “It will look like a corner in picked up 11.76 points, or 4.7 Feb. 1, income climbed 27.1 per- Paris,” said Scaasi, who expects percent, to end the day at 260.74 cent to $17.7 million, or 46 cents to unveil the garden between as diplomatic maneuvering as- a diluted share, compared with late May and early June. suaged fears of the possibility of income in the year-ago quarter “We’ve taken a terrible little war in Iraq. of $13.9 million, or 38 cents, in- enclave of bricks and stones, and trees that will be changed each condos range in price from $1.4 UO — which operates 93 cluding a noncash charge relat- it looks marvelous. It will have a season. For spring, there will be million to $5.2 million, was de- stores under the Urban Retail, ed to equity-based compensa- smoked mirror at one end of it orange trees. “It’s an ongoing signed by residential architect Anthropologie and Free People tion. Excluding the charge, covered in ivy, which gives an- project that will keep changing. Costas Kondylis, and developed nameplates — said for the three prior-year income was $16.3 mil- other dimension to the garden.” We’ll be planting all the time. In by Izak Senbahar and Simon months ended Jan. 31, income lion, or 44 cents. Most of the walls will be covered the winter, we’ll bring in Christ- Elias. Scaasi, who didn’t buy a soared 45.2 percent to $8.4 mil- Sales sprouted 30.6 percent to with vines and ivy, and the gar- mas trees,” said Scaasi. condo in the new building, lives lion, or 42 cents, surging past Wall $206.4 million over $158 million den will have containers holding The Grand Beekman, whose in the neighborhood. Street’s estimates of 38 cents. In and inched up 0.3 percent on a the corresponding year-ago peri- comparable-store basis. By mer- od, UO reported income of $5.8 chandise category, accessories million, or 33 cents. were up in the high-single-digit Sales for the quarter climbed range, followed by women’s 13.2 percent to $117.6 million comps, which were up slightly, over $103.9 million. Total compa- offset by a low-single-digit de- ny comparable-store sales rose 1 crease in its men’s business. percent, including a 4 percent in- Gross margin dropped to 30.7 crease at Urban Retail, offset by percent of sales from 34.8 percent a 3 percent decline at Anthro- due to increased promotions and pologie. Direct-to-consumer sales a resulting 470 basis point de- increased 18.3 percent to $9.4 cline in merchandise margins. million, while sales at its whole- “The short-term objectives for sale division Free People fell 11.9 sales, profits and inventory con- percent to $2.6 million. trol also demonstrates the high “All three brands, including di- flexibility of our store model,” rect, showed considerable im- Julian R. Geiger, chairman and provement in margins due to bet- chief executive, said on a confer- ter initial markups as a result of ence call. “We are benefiting from better sourcing and greater buy- a strong brand destination status, ing leverage,” Richard Hayne, being trend right and offering a chairman and president of UO, highly competitive value proposi- said on the call. Also contributing tion for our consumers.” to the bottom line were fewer Asked about the effects of the markdowns during the year due to recent resurgence of Old Navy, improved inventory management. Geiger said Aeropostale does not As has been their habit, com- feel pressure from any single re- Irwin Zazulia pany executives were mute about tailer: “We are confident about financial goals and merchandise the niche we occupy and feel we 1941-2003 plans for the current year, but can sustain growth against any said they expect to achieve a competitive threats.” modest single-digit increase in In fiscal 2002, the company re- comps this year as well as poten- ported income increased 18 per- tial upside on gross profit mar- cent to $31.3 million, or 82 cents a A leader. gins. “Results this quarter are diluted share, compared with in- encouraging and warm-weather come in 2001 of $26.5 million, or A colleague. stores are producing sales that 71 cents. Sales for the 12 months are exceeding plan,” Hayne said, climbed to $550.9 million, a 36.2 adding that the goal this year is percent increase over $404.4 mil- A friend. to open 20 to 24 new stores, in- lion. Comps were up 6.6 percent. cluding Free People units. The company, based here, “We are pleased, but not com- also reiterated its earnings guid- placent,” Hayne said in a state- ance for the year. For the 12 We will miss him. ment. “We have a lot of room to months, it said it believes it is post even better results this year.” likely to report earnings per Glen Senk, president of share in the range of $1.06 to Anthropologie, said on the call $1.10 on sales of $670 million to that women’s apparel and acces- $674 million. By quarter, it said sories were solid in the quarter, expects the first and second but the home business was quarters to result in an EPS loss Lord & Taylor • Famous-Barr • Filene's • Foley's • Hecht's • Kaufmann's • L.S. Ayres tough. “I am doing all I can to of 2 cents to break even, rising Meier & Frank • Robinsons-May • Strawbridge's • The Jones Store • May Merchandising look at each classification of to between 46 and 48 cents in David's Bridal • After Hours Formalwear • Priscilla of Boston product to make sure we are ad- the third quarter, and finally 61 dressing all opportunities,” he to 63 cents in the fourth. 10

ASR sponsored an outdoor fashion show at its fall event this week. Here, a Surf Lifestyle Paces ASR look from O’Neill. HUNTINGTON BEACH, Calif. — The specter of war hung in the air at the ASR Back-to-School show here, perched above Pacific Coast Highway, but so did the briny scent of the sea, which helped lift spirits and energize buying. In its second year, ASR, which ran Tuesday and Wednesday at the Hyatt Regency Resort & Spa, had the benefit of being the sole b-t-s show after Surf Expo WWD, FRIDAY, MARCH 14, 2003 WWD, FRIDAY, backed out of its run last summer, but it took nothing for granted. Show officials wooed retailers with compli- mentary breakfasts and lunches and an outdoor fashion show and party, and vendors who purchased a booth re- ceived a free hotel room to pass on to key accounts. “We were focused about delivering retailers and buy- ers to the manufacturers and we were happy we achieved that,” said Kevin Flanagan, ASR show direc- tor. Split among two ballrooms at the hotel, attendance was up 20 percent to 500 compared with last year, with about 167 booths representing 150 brands, about 50 per- cent more than last year. Among brands breaking fall lines were Billabong, Volcom and Lost Enterprises’ Lost Girl. Hurley pre- viewed at the ASR show in January, where its execu- tives felt the brand could capitalize on national expo- sure, but they still thought it was worth another visit to ASR for the fall edition. “The reps can see accounts in two days that would nor- mally take two weeks on the road,” said Charlie Setzler, O’Neill’s national sales manager. “This helps us get our orders earlier, buy and ship earlier, and forecast better.” The metamorphosis of the surfing girl-cum-cosmopolite continued as lifestyle brands presented floral prints, washed-down rinses, Pink shirt and pants with hardware detailing, black low-cut culottes, fitted jackets and jeans from Billabong’s tan jacket, dainty shirts. Lost Girl. skirt and shirt. Irvine, Calif.-based Lost Girl showed low-rise stretch denim, heavy canvas utility pants, Still, Billabong USA presi- compared with last year, but said business must go on. Western-inspired wovens with dent Paul Naudé said war un- “Yes, war will affect things and the mindset of people, pearlized snaps, and kimono- certainty was out there, sending but we can’t keep stores empty,” he said. Denim, cor- styled blouses with embroidery. shivers through stock markets at duroy and twill pants as well as sweatshirts, zip-up hood- For first-time ASR Fall ex- the slightest provocation. ies and wovens were the fall looks his handful of buyers hibitor Billabong, the focus was Australia-based Billabong were focusing on from Roxy, O’Neill, and Billabong. on retro surf, punk and beatnik International Ltd. recently cut its Adi Zucker, owner of Ocean Gear in Manhattan looks such as ringer cap-sleeve profit growth estimate to 20 to 25 per- Beach, Calif., said she also was playing it safe, even shirts, pleated plaid miniskirts, color- cent from 25 percent, citing the poten- though March sales are up 7 to 8 percent. ful ponchos and striped sweater vests. tial impact of war. “We’re not picking up new lines, just lines we carry,” Even without vert ramps, barely clad “We’re not worried, but if bombs start Zucker said. Since she skipped the January ASR, she babes and beer kegs — mainstays at the dropping, it’s hard to say how consumers will was focusing on cargoes, outerwear and denim. January and September events — the energy was react,” Naudé said. Retail rules seemed to bend as former department palpable. Manufacturers reported brisk buying at the While most clothing makers said they weren’t chang- store-averse brands explored new partnerships. show and even decent business to date. ing the way they do business, they said they were re- Alcoa, Tenn.-based Proffitt’s, a unit of Saks Inc., was “We’re up 20 percent in the first quarter compared fraining from extra commitments. scouting out labels for its new B3 — Blades, Bikes, with last year, and for fall we’re at 50 percent of our goal “We’re in growth mode, so we could create a big mar- Boards — young men’s section unveiled in 16 of its 54 compared with the same time last year, when we were at keting push, but we’re waiting to see what happens in stores since last August. So far, Quiksilver, Hurley and 35 percent,” said Christina Smith, Split’s sales manager. the near term,” said Split founder Dave Patri. Billabong are among the lines it carries. Smith said buyers from ZJ’s Boarding House in Santa To guarantee sales, some exhibitors baited retailers It’s a bigger push for the chain, which someday sees Monica, Calif., and the 12-unit Puerto Rican chain Bora with same-day incentives. Split offered a 3 percent show the idea spilling into its junior section. Bora, were into “jackets, jackets, jackets,” including denim discount and San Clemente, Calif.-based Gouge offered “We’re banging on doors, willing to work with manu- bombers with chunky ribbing and belted corduroy jackets. $1 off per item. facturers, because we really believe in this concept,” said L*Space owner Mary McNeel said she landed three The move was in line with retailers’ caution. Ron Greg Baltasar, Proffitt’s divisional vice president and di- new accounts on the first day, including a soon-to-open Abdel Fattah, owner of the four-store chain Jack’s visional merchandising manager for men’s sportswear. shop, Kiki Lounge, in Ventura, Calif. Surfboards here, said he was buying 10 to 20 percent less — Nola Sarkasian-Miller Broken Steam Pipe Cripples Midtown Retail Fashion Scoops NEW YORK — Many of Manhattan’s luxury Avenue and 52nd Street were evacuated, and retailers lost a day’s business Thursday after executives spent the day working from the HAUTE COUTURE 101: Whoever says young people aren’t interested in the couture a steam pipe burst in Midtown, sending a Olympic Towers office of Richemont North hasn’t been to the Fashion Institute of Technology lately. The school is in the huge steam cloud into the sky. Several streets America, whose parent, Compagnie process of creating a haute couture certificate program. were closed to traffic and dozens of stores Financière Richemont AG, owns Cartier. “We recently piloted three courses, including beading, sewing and couture were forced to shut. Some of the sales staff at the flagship decid- construction,” said Francesca Sterlacci, chairwoman of FIT’s fashion design “Whether stores stayed open or closed is ed to spend the day working at the Cartier department. “The classes have been overbooked.” irrelevant. There’s been no pedestrian traf- boutique on Madison Avenue, about a half- Nobody is more amazed than Sterlacci. “People laughed when I came up with fic from 50th to 54th Streets since 10:30 a.m., mile north of the main store. this idea,” she conceded. said Tom Cusick, president of the Fifth Other stores in the vicinity that were di- Geoffrey Beene has been a staunch supporter of the program, and the late Bill Avenue Association. “Clearly, it’s a mess. In rectly affected are Banana Republic, Gap, Blass was a supporter while he was alive. While students might secretly dream of that four-block stretch, I would say there’s a A|X Armani Exchange, Brooks Bros. and being the next John Galliano, they’re realistic about their career options after minimum of 20 stores.” the NBA store. Saks Fifth Avenue stayed completing the program. “Their goal is to do private clients,” Sterlacci said. “There Among the stores that did close was open, but with all the disruption, business are enough people out there who don’t want to wear Donna, Ralph or Calvin.” Salvatore Ferragamo, at 661 Fifth Avenue by was hindered. 52nd Street. “There are tons of uniforms out- The steam pipe that burst was in a build- BIN LADEN’S BACK: After an unsuccessful attempt at a singing career (once London’s side — policemen, firemen —and we were ing by 52nd Street and Madison Avenue. music executives discovered who her uncle was), and keeping a low profile after told not to drink the water,” said a spokes- Fifth Avenue was closed to traffic from 51st Sept. 11, Waifa bin Laden is back on London’s social circuit. Bin Laden, one of woman at Ferragamo. City officials feared to 57th Streets, and 51st, 52nd and 53rd Osama bin Laden’s nieces and a lawyer, was arm candy on Wednesday night for man- the burst steam pipe could lead to contami- Streets were closed between Broadway and about-town Robert Hanson. The pair were spotted outside Nobu, which was hosting nation. Con Edison workers were testing the Madison Avenue, causing gridlock. Garrard’s dinner and cocktail party for the Save the Children charity. pipes for asbestos lining and any other dan- Subways were still running, though, no Meanwhile, Nobu’s White Room, where 40 guests paid $1,600 a plate, was the gerous material. injuries were reported and electricity was place to be. “The food was just incredible, but it was even better knowing that 600 A Cartier spokeswoman said the compa- not affected. hoi polloi were standing outside not eating anything. Ha!” said David Tang in his ny’s headquarters and flagship at Fifth — David Moin and Marc Karimzadeh booming stage voice. “It was worth the money just to know that.” PHOTOS BY JAN JARECKI JAN BY PHOTOS 11 Tiffany Unit Acquires DMA Warns on Internet Tax FRIDAY,WWD, 2003 14, MARCH Continued from page 2 Temple St. Clair Stake The DMA study said in 2001, states lost out to only $1.9 billion Continued from page 2 or investment, the spokeswoman in uncollected Internet sales tourmaline, aquamarine, peri- said: “Whatever we go into, taxes, compared with $13 billion dot and diamonds and pearls. whether it’s an acquisition or in- forecast in a pre-dot-com-bust Pieces include Bombé Bubble vestments, they will be closely study conducted by the Univer- rings, which feature clusters of aligned with jewelry retailing.” sity of Tennessee. The university cabochon stones, blue moon- Last month, Tiffany & Co. study has been widely used as stone and diamond cluster neck- posted higher fourth-quarter the benchmark for measuring laces and bracelets. The collec- sales and earnings, and alluded potential tax revenues. tion has an established celebrity to its plans to invest into a new For their part, traditional re- following and the likes of Nicole non-Tiffany retail jewelry con- tailers were unconvinced by the cept this year. DMA study. “There will be incremental “The amount of revenue gen- business development spending erated is irrelevant,” Maureen to support new retail jewelry Riehl, a vice president of state concepts, one of which will be affairs for the National Retail rolled out in 2003,” James Fer- Federation, said in a statement. nandez, Tiffany’s chief financial “The issue for retailers is the officer, said at the time. “The unfair price advantage enjoyed U.S. jewelry market is vast, com- by merchants who don’t have to petition is fragmented and we collect sales tax.” believe very strongly there are Congress will have to give its Tiffany & Co. will help jewelry firm certain segments of the market approval before states can form Temple St. Clair build retail units. that are underpenetrated, but compacts and collect Internet A Web page from macys.com. cannot be served efficiently by sales taxes. Two years ago, the Kidman, Renée Zellweger and the Tiffany & Co. brand. We in- issue was debated in committee folded into discussions about an Federated, who attended the Rita Wilson have been spotted tend to address that opportunity in the House and Senate. But unrelated moratorium on Inter- unveiling of the DMA study at a sporting her designs. in the near future.” lawmakers were concerned net use and access taxes. Tax-col- news conference, said the cur- The line is currently sold in For the three months ended about the difficulty in collecting lection proponents want the two rent state tax simplification jewelry and high-end specialty Jan. 31, Tiffany’s income in- taxes for 7,500 tax jurisdictions tax and moratorium issues dis- plan could lead to doubling the stores such as Bergdorf Goodman, creased 7.9 percent to $89.3 mil- with varying rules as to what cussed in tandem so the Internet number of taxing jurisdictions. Neiman Marcus and Fred Segal. lion on sales that rose 9.4 per- gets taxed and said states would tax issue doesn’t get lost. He said Federated annually col- As for any further acquisitions cent to $619 million. have to narrow their taxing dif- Like earlier congressional lects $1 billion in sales tax a ferences first. wrangling on the tax issue, Fed- year for 34 states at a cost of In November, a state commit- erated Department Stores is “tens of millions of dollars out tee issued a plan providing for caught between both camps. of our pocket.” two taxing jurisdictions per Federated is opposing Internet Julian welcomed the DMA state, but unlimited jurisdic- sales tax collection until states study and said, “If Congress is ShopKo Earnings Slide tions at the local level. develop an even more simpli- going to consider legislation that The tax issue is expected to fied tax version. would require remote sellers to resurface on Capitol Hill this fall. Frank Julian, operating vice collect sales tax, it should at least On Sales Slump in Qtr. The debate, as before, will be president and tax counsel with be armed with accurate data.” NEW YORK — Sagging sales and income retreat 12.9 percent to special charges depleted Shop- $70.2 million from $80.6 million. Ko Stores Inc.’s bottom line in Sales declined 4.3 percent to the fourth quarter. $736.2 million from $769.1 million, For the three months ended and comps dipped 4.3 percent. Feb. 1, the Green Bay, Wisc.-based In other operating indicators, A lifetime discount retailer said net income a reduction in shrinkage ex- regressed 6.3 percent to $32.7 mil- pense and improved margin lion, or $1.12 a diluted share, ver- rates at Pamida allowed gross of dedication, sus earnings of $34.9 million, or margins to expand to 26.9 per- $1.21, in the prior-year quarter. cent of sales from 26.7 percent Although ShopKo took a pre-tax $6 in the year-ago period. leadership, loyalty million restructuring charge, earn- Overall, for the full fiscal ings per share did manage to beat year, ShopKo recorded a net loss the Wall Street estimate by 3 cents. of $144.8 million, or $4.95. By and generosity... The company delivered solid results, “reflecting a significant improvement in our Pamida division and meaningful working capital management. Irwin Zazulia — Sam Duncan, ShopKo” Stores Inc. (1941-2003) Former President and CEO Sales for the period declined comparison, the firm produced of Hecht’s/Strawbridge’s for 20 years. 4.5 percent to $961.4 million earnings of $28.2 million, or 98 from $1 billion a year ago, as cents, in fiscal 2001. Excluding a same-store sales fell 4.1 percent. change in accounting principle “We are pleased to report that in both years, income would the company delivered solid re- have increased 68.5 percent to sults, reflecting a significant im- $39.6 million, or $1.35, versus provement in our Pamida division $23.5 million, or 82 cents. His commitment to family, and meaningful working capital Sales for the year receded 4 management,” said chief execu- percent to $3.25 billion from $3.39 friends and fellow man tive officer Sam Duncan in a state- billion a year ago. Excluding ment. “I am particularly pleased closed stores, sales declined a is an inspiration that we reduced our net debt posi- more modest 2.3 percent from tion by $182 million during fiscal $3.33 billion. 2002. This performance, along In guidance, the company to us all. with last year’s $198 million net said first-quarter earnings per debt reduction, has significantly share are expected to land be- improved our balance sheet.” tween break even and a loss of 5 At the Pamida division, operat- cents. For the full fiscal year, ing income soared more than six- earnings are forecast at $1.40 to fold, or 557.3 percent, to $11.6 mil- $1.50 a share. lion from $1.8 million a year ago, The results helped push Shop- even though sales fell 5.1 percent Ko shares up 62 cents, or 6.1 per- to $222.2 million from $234.3 mil- cent, to close at $10.72 in New lion last year. Comparable-store York Stock Exchange trading sales decreased 3.7 percent. The Thursday. DIVISIONS OF THE MAY DEPARTMENT STORES COMPANY ShopKo segment saw operating — Dan Burrows 12 From Chopping to Shopping

By Holly Haber Students, aka potential Viking owners, participate in a cooking DALLAS — Fashion retailers desperate to engage con- owners, participate in a cooking sumers and create loyalty in the midst of this stubborn class at the Dallas VCAC. economy and signs of a possible war — when simply get- ting shoppers to come into a store is a challenge — might want to look at ovens. WWD, FRIDAY, MARCH 14, 2003 WWD, FRIDAY, There are no price tags on the array of cooking de- vices on display at the Viking Culinary Arts Center here. Rather, the primary purpose of the VCAC is brand building — raising awareness of Viking’s professional ranges, refrigerators and grills. Potential customers can come in and test drive an appliance at VCAC, a facility that includes a retail store stocked with high-end cooking tools, a culinary school and 40-seat theater for chef demonstrations. “Educating the customer is the most crucial thing to our success,” said Joe Sherman, president and chief ex- ecutive officer of VCAC, a division of Viking Range Corp. “We let them see firsthand how the product performs.” There are some parallels in the fashion industry. Specialty stores such as Chanel hold mini-runway shows, and makeovers have been a staple of department store cosmetic floors for years. These days, however, the fact that most makeovers require a minimum pur- chase of $50 has left some customers disillusioned. To be sure, a customer who balks at the mini- mum purchase requirement is probably not one who would have sprung for the whole line any- way. But there is something charming about a company that offers a service without a blatant quid pro quo. What companies such as Viking have learned is that affluent folks ▲ A Viking range with built-in grill. — those who’d consider buying A view of the a Viking stove at price tags demonstration area from that range from $3,000 to the theater seats. $10,000 — are interested in learning about the product in a stress-free environment without the hard-sell of a com-

missioned appliance salesman breathing down their throats. Similarly, many serious cosmetics customers re- spond to scientific and tech- nological breakthroughs, while designer customers have come to expect thoughtful personal attention. VCAC has found a formula for cross- promotion. The people who attend its cook- ing presentations will lust after the stainless steel-clad appliances the chefs use to prepare the food. If they’re not prepared to buy one right away, they can take home some of the gleaming cooking tools sold in the store. The retail area is densely merchandised with goodies for foodies, including lots of Viking cookware and cutlery, and a myriad of sophisticated tools and gourmet condi- ments. Bestsellers include $20 Orka silicone mitts that can be used to pluck an egg from boiling water and $40 Working ranges and ovens in the Rosle professional garlic presses. There are also demonstration area of the store. Microplane cheese and vegetable graters, priced from $10 to $17; Global steel knives, $44 to $110, and copper PHOTOSKARLISCH STEVE BY duck presses, $2,000. Viking founder and chairman Fred Carl got the idea for Located on McKinney Avenue around the corner “We try to carry tools and bakeware so we can make a “test drive” center for ovens while visiting a Land Rover from Dallas’ prime strip of home furnishings retailers, a strong presence in those categories,” said Sherman, a dealership. He started the concept by buying four Home the VCAC earned a fast buzz after its October opening. former executive vice president of McRae’s department Chef locations in California and opening the first branded Most of its culinary students and shoppers fit Viking’s stores in Jackson, Miss. “We have an extensive assort- Viking center in Memphis in 1999. The sixth VCAC is ex- target demographic: women, aged 30 and older, with a ment, but we stay out of tabletop and fringe classifica- pected to open on March 22 in Garden City, N.Y. household income of more than $70,000. tions such as linens because our purpose is to comple- Units are slated to open in April in St. Louis, fol- “In the culinary basics class, they start out with sanita- ment the professional feeling of the Viking range.” lowed by Cleveland in the fall. Sherman continues to tion and knives, and it introduces them to all the things we The store also sells products that enhance the gourmet scout for sites in Los Angeles, Boston, Phoenix, have on the sales floor,” noted manager Laura Plumettaz. dining experience, which often includes an appreciation Washington, Houston, New Jersey and the Carolinas. He “They get to keep the chef ’s coat, and they receive a 10 of fine wine. Riedel Austrian stemware, priced from $20 expects to have a total of 40 centers within six years in percent discount in the store.” to $30 a glass, is designed to maximize the flavor of vari- markets where Viking already has a strong presence via Sherman mused that other retailers might get some ous wines — bringing out the oak in some vintages, for ex- its distributors and dealers. ideas from the focused, multifaceted strategy of the ample — through their shape, which determines where Customers with an interest in Viking’s flagship prod- Viking Centers, which give the company a high profile the wine hits the palate. uct — ranges — are directed to local dealers. They also and level of credibility that only a substantial advertis- A lengthy roster of cooking classes attracts 150 to 200 can walk to the rear of the store and visit the adjoining ing investment could create. (Viking advertises in shel- students a week, and the VCAC here will present semi- showroom of Milestone Distributors, Viking’s regional ter magazines.) nars given by seven guest chefs in its theater in April wholesale distributor and a partner in the Dallas VCAC. “In creating a classification you need to dominate and May. Viking mails a quarterly newsletter and cook- Milestone provides product information to shoppers, the category,” Sherman said. “If you don’t really believe ing class schedule to current and prospective customers. then directs them to a dealer, the closest of which is a in it then get out of it. Offering a class or some type of The stores have been doing $400 to $600 a square foot block away, for the actual sale. education online are some of the things retailers can in sales, Sherman said. “It’s hard to measure whether they go and buy the prod- do. You have to offer something extra. The classes and The 4,380-square-foot Dallas VCAC, which is a proto- ucts, but I think that over the next few years we will see the the information customers get from our sales associates type for future centers, consists of a 2,500-square-foot impact of the VCAC,” said Mary Miles Temple, Milestone’s about the difference between lemon squeezer A and store, a 700-square-foot teaching kitchen and a 1,180- marketing manager. “Our dealers say it’s fabulous that we juicer B is what sets us apart. square-foot theater. have this center. The brand awareness has been great.” “There is nobody doing what we do,” he concluded. WWD, FRIDAY, MARCH 14, 2003 13 BEAUTYBIZ WWD Laura Ashley PLC expects to Power Players Power Gadzooks, a specialty retailer of casual E-GADZ: LAURA’S LOSSES: clothing and accessories for young men and juniors, reported a fourth-quarter loss of $2.3 million, or 25 cents a diluted share, reversing a year-ago profit of $3.9 million, or 43 cents. Sales in the quarter dropped 0.5 percent to $96.8 million over $97.3 million and com- parable-store sales sank 3.1 percent after a 3.9 percent decline for the fourth quarter of last Junior year. comps rose in the low-single digits, hurt by sales of denim and sweaters, while stumbled men’s in the mid- single-digit range. During the quarter, Gadzook’s in- curred a $5.9 million pretax impairment charge for un- derperforming stores. Gerald Szczepanski, chairman and chief executive, said on a conference call Monday that the firm plans to close 10 percent of its 434 stores by the end of the year as part of its previously reported restructuring plan to convert to an format. all-women’s The Dallas-based firm also reported a loss in 2002 $1.3 million, or 14 cents, compared with a profit in 2001 of of $6 million, or 65 cents. Sales for the 12 months rose 3.7 percent to $325.5 million over 2001 sales of million, $313.8 but were down 3.4 percent on a comp Although basis. Gadzooks’ financial results were released after the market closed, its shares closed down 12 cents, or 4.5 percent, at $2.56 on Nasdaq trading Monday, breaking its previous 52-week low of $2.59, reached on March 7. ● ● close the fiscal year ended Jan. 25 with a pretax before exceptional loss, items, of approximately $8 million. The company said in a statement the loss was lower-than-expected sales due and to margins in January 2003, higher writedowns of stock, and an increase in accruals and other year-end accounting adjustments. On a more positive note, the company said it “advanced was negotiations” with in a prospective franchisee for the Laura Ashley stores in Germany, Switzerland and Austria. As reported, the company plans to shutter 35 stores across continental Europe — including all of its German units — in a bid to stem losses, but is seek- ing franchise partners for its remaining 18 stores, all of which are profitable. Dollar figures are converted exchange. from the dollar at current NACDS Annual April 11 Movado Group Inc.’s March 18 April Beauty Biz who comers and up the from industry beauty the of who who’s ultimate The wield who people behind-the-scenes the to screen radar your on be should the most power. The Power Issue: Close: Bonus Distribution: The Beauty Industry’s who’s got the For For more information, call Publisher Sarah WWDBeautyBiz,Murphy, at 212/630-4656 or your WWD sales representative. juice? MOVADO’S MOVADO’S FISCAL WATCH: 10.6 jump in net profit and 7 percent rise in group for sales 2002. The Herzogenaurach, Germany-based footwear and athletic apparel firm said net profit hit $252.6 lion, mil- up from $229.4 million the year before. Group sales net topped $7.19 billion, a rise of 11 percent when cur- rency fluctuation is excluded. Dollar figures are convert- ed from the rate euro of at $1.10 the per current exchange euro. Fourth-quarter operating profit rose 21 percent to $72.8 million as net sales for the 13 weeks grew 8 percent to $1.65 billion and advanced 17 percent without curren- cy fluctuation. Adidas-Salomon also said order backlogs at the end of 2002 grew 6 percent, the order backlog “highest growth rate yearend in four years.” Orders in Europe were up 10 percent, the highest rate since 1997. In euro terms, backlogs in North America declined 3 per- cent, but were up 15 percent on a currency neutral basis. In Asia, orders were up 11 percent and twice that much on a currency neutral basis. In 2003, the company “aims to deliver healthy top-line growth of around 5 percent on a currency-neutral basis.” Adidas-Salomon said growth is expected to come from all regions, with double-digit cur- rency-neutral sales gains expected in North American and Asia. The company is forecasting a gross margin between 42 and 43 of percent of sales, and is targeting earn- 10 and 15 percent. ings growth for the year at between ● fourth-quarter net income rose 20.5 percent to $5.5 mil- lion, or 46 cents a share, from $4.6 million, or 38 cents, in the year-ago period. Sales for the three months ended Jan. 31 were up 6.4 percent to $79.5 million from $74.8 income million. the rose For year, 17.1 percent to $20.1 million, or $1.65, from $17.1 million, or $1.43, last Sales were essentially year. flat, inching up 0.1 percent to $300.1 million from $299.7 million. results Year-ago exclude nonrecurring accounting adjustments and charges. “Throughout the year, we continued to focus on our strategy of executive cost savings initiatives, driving productivity improvements and improving working capital management,” Rick Cote, executive vice president and chief operating officer, said in a statement, adding: “In fact, we were in a zero net debt position at the end of the which quarter, provides us a our growth initiatives.” solid foundation to execute Confirming preliminary figures Inter Parfums Inc.’s fourth quar- Christian Dior SA said Thursday

ADIDAS ADIDAS ON THE RUN: PARFUMS PARFUMS PROFITS:

MORE FROM DIOR: By the Numbers released two months ago, Adidas-Salomon reported a net profits last year reached $700.7 million, compared with $3.3 million in 2001, while operating income jumped 31 percent to $2.24 billion. Dollar figures are converted from the euro at current exchange. Christian Dior SA, which comprises the Christian Dior fashion house and luxury giant LVMH Moët Hennessy Louis that it benefited from lower noted in a statement Vuitton, finance charges due to a reduced debt load. The Dior re- sults coincide with LVMH’s 2002 results announced last week. Net profits were $609.6 million, while operating to $2.20 billion, as reported. profit advanced 29 percent ● ● ● ter came out smelling like a rose. Net profits 24.9 ascended percent to $2.8 million, or 14 cents a from diluted $2.2 million, share, or 11 cents, a year ago. three Sales months for ended the Dec. 31 grew by 36 percent to million from $37.1 $27.3 million a year ago. “The sales momen- tum that began in the third quarter for both our market mass and prestige lines continued in the final quarter of 2002,” said chairman and chief executive Jean Madar in a statement. Over the full year, income rose cent 15.8 to $9.4 per- million, or 47 cents a diluted share, from $8.1 million, or 41 cents, during the preceding Sales year. ad- vanced 16.1 percent to $130.4 million from $112.2 million in firm 2001. is the This looking New year, for York-based profits to rise 17 percent to $11 million on a 15.1 percent increase in sales to $150 million. Inter Parfums also raised its quarterly cash dividend by 33.3 percent to 2 cents a share. The company owns 77 percent of Paris- based Inter Parfums SA, which is traded on the Paris Bourse, and the French firm’s results are consolidated The accordingly. American company is traded on the Nasdaq. The group plans numerous product launches this year, including summer fragrances from Celine and Christian Lacroix; a floral version that of Burberry Touch will bow in the spring, called Burberry Tender Touch, and another Burberry women’s fragrance, which is planned for fall. The next quarterly dividend is payable on April 15 to shareholders of record on March 31. 14 Media/Advertising Nautica Taps Laird + Partners

By Lisa Lockwood previously worked with Laird when Witkowski was itage. When Nautica first came out, its strength was president of Donna Karan Menswear. Witkowski was rooted in its strong connection to water, it was active- NEW YORK — Laird + Partners, the ad agency based unavailable for comment Thursday. inspired and full of color and energy that a real guy here that handles Donna Karan International and Gap, David Chu, Nautica’s founder, vice chairman and could relate to. That needs to be sharpened. It wasn’t WWD, FRIDAY, MARCH 14, 2003 WWD, FRIDAY, has another all-American account: Nautica. designer, said about the agency change: “We’ve been about a runway fashionista, but real men’s clothes for Laird + Partners bested incumbent Toth Brand thinking about the evolution of the brand. Mike a real man’s life.” Imaging, the Concord, Mass.-based ad agency that han- [Toth] did a good job and evolved our position. It’s Nautica, which had sales of $692.1 million for the fis- dled the account the past four years, as well as Lipman, time to continue to evolve it. Trey will give me addi- cal year ended March 2, 2002, has taken some hits in the New York ad agency. tional ideas for a combination of new projects.” Chu profitability lately. A highly promotional retail environ- “Our work was good and we’re thankful for the op- said one of the priorities is developing a Nautica ment, a one-time write-off for its Rockefeller Plaza portunity. But change is good sometimes,” said Mike women’s line. He also said Laird will be the “power store and a weakness in its women’s jeans forced Toth, president of Toth Brand Imaging. “We increased point” advertising person for all products bearing the Nautica’s third-quarter net income for the period [overall] sales 25 percent over four years.” Nautica label. ended Nov. 30, to plunge 46.5 percent to $7.3 million. Laird’s new assignment will begin with the fall ad- “The brand continues to grow even during this diffi- That compares with last year’s earnings of $13.6 mil- vertising campaign. It encompasses the Nautica brand, cult economy,” added Chu, citing strong business in the lion, or 40 cents. Nautica Jeans and Nautica Competition. Media will home area, as well as other licensed products. Through Sales for the period inched up 3 percent to $207.1 continue to be handled by Nautica’s in-house media its licensing agreement with Unilever Prestige, it million from $201 million a year ago. For the first nine department. launched a new men’s Nautica Competition fragrance months of the year, Nautica’s net earnings sank 41.2 A Nautica spokeswoman declined comment on its this month at retail, as reported. percent to $15.1 million. That compares with last year’s annual advertising budget, but sources estimated it to Trey Laird, president and executive creative direc- profits of $25.7 million, or 75 cents. Sales for the period be in excess of $20 million. tor of Laird + Partners, told WWD: “To me, what’s re- declined 3.4 percent to $515.2 million from $535.5 mil- Don Witkowski, president of Nautica International, ally important is that the brand stay true to its her- lion a year ago.

architect while Wired editors did all fashion editor of the International the work. The writers tell a different Herald Tribune, plans to attend the story. “It wasn’t that Wired could just Oscars on March 19 for the first MEMO PAD pick things,” said one contributor. “I time. “This is the year to go to the think he has a pretty good amount of Oscars. It’s a real red-carpet STATUS REPORT: Since Ron Galotti control over it.” — G. L. moment,” she said. And so what will moved back to Condé Nast following Menkes grace it with? “That’s what the demise of Talk, there have been WE DON’T GIVE A FLAIR: In more than everybody’s asking, but they won’t questions as to whether his 20 years as the editor of Italian know until I’m on the red carpet,” appointment at GQ was just a Vogue, Franca Sozzani has operated she quipped. “It might have a temporary gig — or whether he was as Italy’s closest comparison to perfume of Asia. That’s the only clue being placed in permanent purgatory Diana Vreeland, with little I’m going to give.” — M. S. for having defected. Now, sources competition in her way. But the close to Galotti say that with Art surprisingly fast advent of Flair, FASHION APPEAL: One part fashion, Cooper out, or on the way out, and a which is published by Italian two parts humor and a dash of sexy new editor coming in within the next publishing powerhouse Mondadori sophistication sums up the print ads few months, the most likely scenario and has more than 300 pages of ads breaking this week for orange-peel- entails the publisher spending some in its second issue (think In Style for flavored liqueur Cointreau. The more time at GQ — even as they Italy) has begun to make the team at campaign, shot by fashion confirm growing speculation that an Italian Vogue sweat. photographer Richard Burbridge (CK eventual promotion (putting him According to several sources in One; Gucci timepieces), features upstairs with Richard Beckman and Milan, Condé Nast management, the tag line “Be Cointreauversial,” Steve Florio) might be in the cards. which publishes Vogue Italia, has below the image of a model clad “It’s probably not going to happen at told all stylists and photographers only in two strategically placed the moment,” said one source within that if they work for Flair, they will pieces of orange peel. The target of the company, before adding a big never work again at any Condé Nast the latest play by the clear liqueur but: “I think in the long term it Italia publication. “It’s even gone — created in France 150 years ago might happen. Ron’s a great beyond photographers,” said one by Edouard-Jean Cointreau — is salesman. They don’t plan on having source familiar with the situation. professional women, ages 25 to 35, him there forever.” At the same “They’re also threatening models who pride themselves on their time, others said, “Upstairs is and makeup artists — everyone individuality (but presumably wear Siberia. Richard Beckman went involved in creating a fashion more than orange peels). Thus, the upstairs after he broke a girl’s nose, magazine.” catch phrases (in three versions of and I think he’s done well, but what But when called for comment, the ad): “Sip out of the the hell do you hear about him Sozzani, played down the aggressive mainstream,” “Good things come to now?” Which is just to say that at tactics, calling it business as usual. those who taste” and “To the beat Condé Nast, everything besides “First of all,” she said, “I never said of a different drum.” getting fired is a Rorshach blot. anything such as that. Ever since I The Cointreau ads will appear in Condé Nast declined comment. can remember working here, more April issues of Marie Claire, Vogue, — Jacob Bernstein than 20 years, the policy has always InStyle, Jane, Interview, Lucky, been that a photographer who works Cosmopolitan, Blackbook, Flaunt, MACBAIN’S NEW ART: Some women for Condé Nast Italia cannot work for Surface and Entertainment Weekly. buy lipstick when their boyfriends any other Italian magazine, whether Billboard and bus shelter ads will go dump them, but Louise MacBain has Louise MacBain it’s [the news weekly] Panorama or up next month in Atlanta, Boston, bought a magazine instead. MacBain Amica. It’s the same way with Condé Chicago, Dallas and San Francisco; quit as chief executive officer of the building the classified ad empire guest editor of its June issue, which Nast in France.” — Courtney Colavita bus wraps will roll on Long Island’s Phillips auction house in December, Trader.com with her ex-husband is being hung on the peg of “space” Hampton Luxury Liner, from May separating from her then-boyfriend, John MacBain. Louise MacBain, and spaces both real and imagined. HOMME ALONE: It looks like Vogue through July. — Valerie Seckler Phillips co-owner Simon de Pury, in traveling in Europe, could not be Condé Nast has a long and glorious Hommes International soon will be the process. Now MacBain has reached for comment. tradition of guest editors at its getting a new creative team under bought Art & Auction — which As far as LVMH is concerned, magazines (Roseanne Barr’s stint at editor in chief Richard Buckley. regularly covers her old flame. She Arnault, who could not be reached The New Yorker comes to mind) but Sources said longtime features editor acquired the title from LVMH Moët for comment, has said publicly that Koolhaas’ efforts have so far Prosper Keating was shown the door Hennessy Louis Vuitton and Bernard he plans to divest the company of extended to rubber stamping copy last week and creative director Donald Arnault — who’s on a disposing spree “marginal” assets, and a money- and using his star power to recruit Schneider has been moved on to other at the moment — for approximately losing art magazine might certainly marquee names like Martha Stewart, new projects at Condé Nast France. $320,000, according to a source be construed as that. — Greg Lindsay who will be one among many Also, several key contributors were close to the sale. thinker-ceo celebrities with short told their services are no longer While MacBain has taken pains THE KOOLHAAS ISSUE: When James pieces in the mix. needed and sources said the changes to spin her breakup with de Pury as Truman told Condé Nast’s editors Sources close to the magazine say have spawned three separate lawsuits one where she walked out on him, almost two years ago that he’d hired the issue’s final contents are still up against the magazine. Buckley was the source said the opposite is true, rock-star architect Rem Koolhaas as in the air, and it seems a few editorial traveling Thursday and could not be and that MacBain is desperate to be a consultant, no one thought it control issues need to be worked out. reached for comment. Condé Nast involved in his world in whatever would take so long to see the proof Wired articles editor Thomas Goetz, France president Didier Suberbielle capacity she can. And running Art & that Koolhaas was doing more than who’s Koolhaas’ liaison on the declined all comment. — Miles Socha Auction presumably should come filing expenses. project, said the magazine brought easier than her 10-month stint at But the word out of Wired is that the space idea to him, and has CARPET BAGGER: Never mind war Phillips, since she made her fortune Koolhaas is hard at work as a special merely solicited advice from the jitters. Indefatigable Suzy Menkes, Cointreau’s new ad.

16 The Bulletproof Babe ● Academy Awards Absentee Ballot ● Prada’s Proxies 3 0 0 2

, 4

1 Rachel Weisz Jamie King

H C R A M

, Y A D I R F

, D W W

By Aileen MehleSuzy

Not only does she sometimes go by two names in real life — James King when she models, Jamie King when she’s in a movie eye® — but in the upcoming comedy, “Bulletproof Monk,” La King plays a dual role: “Bad Girl,” a renegade street-kid gang member who evolves into the alluring and mysterious “Jade,” a young woman who finds that her true purpose and meaning in life is to help the Monk (Chow Yun-Fat) save the world! For the role, Jamie, who began modeling at 15, went change, since he had planned to be there to support his with her boyfriend, Lee Alexander, who says, “We’ve through strenuous training for months, spending six to “Road to Perdition” co-stars Tom Hanks and Paul talked about a married future together, and proposing seven hours a day learning gymnastics, kung fu, tae kwon Newman, who is up for Best Supporting Actor for his role would be the perfect way to celebrate her Grammy do, Hong Kong street fighting and how to do battle while as a mafia godfather. Officially, Jude’s reason is that he is success.” No word on what her father, the sitar player Ravi balancing on a wire. going to be on location in London filming “The World of Shankar thinks, and considering he and Norah don’t really She says that is one of the reasons she wanted the part. Tomorrow,” a science fiction thriller with Gwyneth speak much, Norah probably doesn’t care much. “It’s so physical and the idea of acting and doing all that Paltrow and Angelina Jolie. Unofficially, it’s because it’s ● challenging stuff really appealed to me. I’m pretty athletic, his close friend Nicole Kidman’s big moment, and neither Miuccia Prada loves Hollywood and stylish movies so and I feel it’s a cool thing to incorporate something like one wants the persistent talk of their affair, which they much it’s really no surprise that her Miu Miu store in Los this into your craft. I had a great time, and your body really both deny profusely, to get in the way. “No, we are not an Angeles will for the third year in a row give a party for the looks incredible after all that training.” Not that it was item,” Nicole says, hoping that the focus on her Oscar IFP/Los Angeles Film Maker Labs ,which supports the exactly Flab City before. See for yourself when nomination for “The Hours” “will not be overshadowed by careers of emerging young film makers. This happens “Bulletproof Monk” opens on April 16. all these false rumors.” Heaven forefend. tonight and hosting for Miuccia, who is in Milan making ● ● plans for her new store in Tokyo opening this month, will Rachel Weisz is getting all the attention as the only Russell Crowe says you won’t be seeing him on the red be such as Adrian Brody, Kirsten Dunst, Amanda Peet woman in a sea of men in her upcoming crime thriller, carpet this year, either. He went a little crazy last year and Jake Gyllenhaal. They and lots more just like them “Confidence.” She beat out some of Hollywood’s finest to when he lost out for his role in “A Beautiful Mind” to will get to check out Prada’s new men’s and women’s co-star with Ed Burns, Andy Garcia and Dustin Hoffman, Denzel Washington in “Training Day” and after the collections for summer. It’s just off the boat, so to speak. who plays a smarmy crime boss. Rachel had the awards he gave such a wild party in his suite that he was ● experience of a lifetime being the only female in the cast banned from the hotel forever. Of course, there are other Mai Harrison, the Palm Beach chairman of the New because she finally had the chance to find out what’s on hotels all over the place, but this year he has his eye on York Botanical Garden, and her co-chairmen Muffy Miller, every woman’s mind — what men talk about when another prize. He and Danielle Spencer are planning their Jessie Araskog and Mrs. Dudley L. Moore Jr. hosted women aren’t around. “If you are a girl, you always April wedding on his ranch in Australia, where he is garden tours at the home of such local perennials as Julia imagine what men say about women when they aren’t building his own chapel for the occasion. Last week, the Koch and Katie Ford. At the end of the day, they had a around, and I found out,” she says. “It’s completely lovers flew to Milan to visit Giorgio Armani to approve the party at the Brazillian Court, where they tasted goodies disgusting and foul-mouthed.” Actually, she was just designs for Danielle’s wedding dress and Russell’s suit. from the hotel’s soon-to-be-opened Café Boulud and kidding. She just loves Ed, Andy and Dustin and thinks He covered his eyes with a blindfold rather than break admired the flower-filled garden and fountain designed in they’re great fun and wouldn’t say a thing behind their tradition and see his bride’s gown before the wedding. 1925. This legendary hotel, which is undergoing a backs. She also wants to work in Hollywood again. That is so sweet. multimillion-dollar renovation, has welcomed everyone ● ● from Marjorie Merriweather Post to Gary Cooper and As of right now, Jude Law has decided not to favor this Norah Jones, who won eight Grammys this year with Cary Grant. The whole gathering was a fundraiser for the year’s Oscar ceremony with his presence. It’s a big her album, “Come Away With Me,” is talking marriage New York Botanical Gardens’ Spring Gala. RACHEL WEISZ:ALAN DAVIDSON/MISSION/WIREIMAGE; JAMIE KING BY STEVE EICHNER WEISZ:ALANRACHEL DAVIDSON/MISSION/WIREIMAGE; JAMIE KING BY