Black Stone Investment by Buying Three Or Four Jewelry Brands
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HAL WWD STYLE LAS VEGAS HAL RUBENSTEIN IS BRANDS TO WATCH ADDING ANOTHER AND THE VENDOR ARROW TO HIS QUIVER: FASHION DESIGNER. AND RETAIL OUTLOOK. PAGE 6 SECTION II SITE LAUNCHES FOOTWEAR Nasty Gal’s Trajectory: From E-tailer to Brand By RACHEL STRUGATZ NEW YORK — Nasty Gal is growing up. The company will today launch its own line of footwear, Shoe Cult, and is also eyeing intimates WWD and swimwear for next year. The e-commerce pure- play is even beginning to contemplate real-world retail outposts. MONDAY, AUGUST 19, 2013 Q WOMEN’S WEAR DAILY Q $3.00 “Exclusivity is important for me,” said Sophia Amoruso, the 29-year-old cofounder, chief executive officer and creative director of Nasty Gal. “Our con- sumer knows it’s the only place they can get this. The modern girl is less concerned with everything being a brand name. The stuff we’re designing has better sell-through [than third-party designers], but we will always continue to carry other designers. This is just the sprinkling on top.” If Nasty Gal continues to thrive and executes on its ambitious plans, the five-year-old company could become one of the first online pure-plays to transcend its roots and become a fully developed fashion brand for a new age. It’s unclear exactly how big the firm has grown. Some industry sources estimate revenues this year will reach $115 million, while others have the compa- ny’s top line headed to more than $300 million. Nasty Gal received a $9 million Series A round of funding in March 2012, followed by a $40 million Series B just five months later. The site’s growth has been explo- sive, with 2010 revenues of $6.5 million more than quadrupling to $28 million in 2011. Half a million shoppers from 50 countries visit nastygal.com on a monthly basis, and more than 30 percent of the site’s sales come from outside the U.S. The company launched first mobile app last week and is working to keep up with its growth with a new headquarters in Los Angeles, which is expected to be completed in the fall. Nasty Gal launched its in-house label on Aug. 1, 2012, with a denim collection, followed by the rollout SEE PAGE 12 Swarovski Targets Fine-Jewelry Sector By JOELLE DIDERICH Monique Péan’s 18-karat recycled rose gold, black tourmaline, fossilized SWAROVSKI WANTS to be number one. dinosaur bone and diamond The family-owned manufacturer of crystal and necklace; Jorge Adeler’s crystal-related products is on the acquisition trail, as 14-karat rose gold, druzy it bids to topple Cartier and Tiffany & Co. to become onyx and diamond ring, the global leader in the fine jewelry segment. and Irene Neuwirth’s 18- “We are number one in the fashion jewelry seg- karat rose gold, black onyx, ment definitely, but we want to strengthen our posi- labradorite, boulder opal, tion further by reaching out a little bit beyond what lightning ridge black opal we’re doing now, by extending our price position- and diamond necklace. ing upwards by means of internally developing new concepts and brands to a certain extent, and making acquisitions that make sense,” Robert Buchbauer, a member of the Swarovski executive board, told WWD while outlining the company’s global strategy for the DELVALLE next seven years, dubbed “Vision 2020.” Swarovski hopes to turn into a multibrand group Black Stone Investment by buying three or four jewelry brands. “We have a very strict and limiting list of criteria CASSAUNDRA that we want to apply to any kind of company to be LBDs exist in the world of fine AND acquired, some of which being the profitability, the jewelry, too, where D stands for growth rate, the minimum size, the brand recognition diamond...plus onyx, jet, black and awareness and the possibility to develop it on a large scale,” Buchbauer said. tourmaline and more. These dark SHELLHAMMER The group signaled its grand ambitions at the jewels, worked into statement pieces, last Baselworld watch and jewelry fair, where it un- have an air of drama and mystery. HAILEY veiled a booth by award-winning designer Tokujin Yoshioka, who also created its flagship in the Ginza For more, see pages 4 and 5. district of Tokyo. Spanning more than 21,500 square ASSISTANTS: feet, the stand was surrounded by a 10-foot-high, curved wall adorned with 253,231 mirrored reflectors PHOTO BY JOHN AQUINO; STYLED BY ROXANNE ROBINSON FASHION SEE PAGE 7 2 WWD MONDAY, AUGUST 19, 2013 WWD.COM Ackman, JCP Ink Stock Sale Plan THE BRIEFING BOX Penney’s board seat a week ago, each request must be for at least 5 IN TODAY’S WWD By VICKI M. YOUNG has a 17.7 percent stake in the re- million shares. The agreement no tailer, or 39 million shares. Vornado longer applies should he own less WILLIAM ACKMAN of Pershing holds 6.1 percent of Penney’s, or than 5 percent of Penney’s stock. Square Capital Management is 13.4 million shares. Vornado sold Certain blackout periods keeping his options open, but a block of 10 million of Penney’s begin on Nov. 20, when Penney’s J.C. Penney Co. Inc. remains in shares in March after the retailer’s has the right to postpone grant- the driver’s seat. posted full-year results under the ing a registration to Ackman or The two entered into a regis- tenure of former chief executive require him to refrain from dis- tration rights agreement on Aug. officer Ron Johnson that left the posing of shares for a period of DUNCAN 13 setting forth the procedures company with a $1 billion loss and no more than 90 days. & for if and when Ackman elects a 25 percent decline in sales. At Finally, should Penney’s elect TODD to sell his shares in the com- the time, Vornado said it sustained to register any of its stock, the A fall look from OF pany. That agreement was made a $225 million loss on its sale of company agreed to give notice to Todd & Duncan. public on Friday in a regulatory Penney’s shares. Ackman that would allow him the For more, see filing with the Securities and Vornado’s chairman Steve Roth option to offer his shares as well. WWD.com. COURTESY Exchange Commission. is also a Penney’s board member. That registration by Penney’s would likely give other registra- PHOTO tion rights holders the option of William Ackman selling their stakes at the same time as well, said Joel I. Frank, Nasty Gal today will launch its own line of footwear and is an attorney in the corporate also eyeing intimates and swimwear for next year. Page 1 practice at Wilk Auslander. ·· Frank said Penney’s and Swarovski is on the acquisition trail, as it attempts to Ackman used a standard registra- become the global leader in the fine jewelry segment. Page 1 tion rights agreement. He empha- sized, “There’s no guarantee that Hal Rubenstein next month will unveil a namesake there would be a sale of shares apparel and footwear collection for HSN. Page 6 of the stock. This agreement pro- vides the potential seller greater Superdry hosted a dinner Thursday night at the Chateau flexibility than other [stock sell- Marmont in West Hollywood to fete a fall collection that ing rules] that have limitations, takes the brand in a mature direction. Page 8 such as volume amount.” Frank also addressed the spec- CASSESE/REUTERS/CORBIS Ziyi Zhang discusses the upcoming film “Martin Scorsese ulative issue of whether Roth, if Presents ‘The Grandmaster.’” Page 9 MIKE he sells his stake, might leave the BY Penney’s board. The attorney said For some editors at Condé Nast, Klara Glowczewska’s exit PHOTO that would depend on whether at Conde Nast Traveler cast Anna Wintour’s new outsize Penney’s has a requirement that influence in sharp relief. Page 9 board members own shares of the retailer. Some companies have This agreement provides the potential that requirement as a way of show- Rosalía Mera, who founded and built Inditex with her ing that “board members have former husband Amancio Ortega, has died. Page 12 seller greater flexibility than other [stock faith in the company,” Frank said. Restricted stock can’t be sold ON WWD.COM selling rules] that have limitations. without a registration with the SEC. According to Noah J. MARKETS: Scottish cashmere mill Todd & Duncan is aiming — JOEL I. FRANK, WILK AUSLANDER Leichtling, an attorney in the cor- to leverage its renown in fibers to become a branded ready- porate practice at Katten Muchin to-wear maker. For more, see WWD.com. Rosenman, “These arrangements In a registration request, It couldn’t be determined if are done to effect orderly market TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS those shares would then be regis- Roth would consider giving up his transactions. They are also done [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. tered as a secondary public offer- board seat at Penney’s if he elect- in compliance with SEC regula- COPYRIGHT ©2013 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. ing. Ackman can request his first ed to sell his stake in the retailer. tions for stock of this nature.” VOLUME 206, NO. 35. MONDAY, AUGUST 19, 2013. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, May, June, August, October and December, and two additional registration beginning on Nov.