BERN OUT AT CHARMING SHOPPES/3 CHRISTIE’S TRIAL STYLE/4 WWDWomen’s Wear Daily • TheTHURSDAY Retailers’ Daily Newspaper • July 10, 2008 • $2.00 Sportswear Showgirl Designers are giving swimwear a theatrical bent just in time for the upcoming swim shows. Case in point: Melissa Odabash’s fringed suit in polyamide and Lycra worn with Joie’s silk and cotton skirt. R.J. Graziano necklace; LaCrasia gloves; Wolford stockings and Moschino shoes. For more, see pages 6 and 7.

Bankruptcy Bell Tolls: Steve & Barry’s Model Collapses Under Crunch

By Vicki M. Young he Steve & Barry’s business model FOR REDKEN; MAKEUP BY MISUZU MIYAKE USING MAKE UP FOR EVER; STYLED BY KIM FRIDAY USING MAKE UP FOR EVER; STYLED BY MISUZU MIYAKE FOR REDKEN; MAKEUP BY Tofficially collapsed on Wednesday, the victim of razor-thin margins squeezed even more by tight credit and the reluctance of shoppers to either drive or spend. The troubled retailer of low-priced chic apparel and footwear and 63 of its affiliates filed a voluntary Chapter 11 petition in Manhattan bankruptcy court after a cash crisis highlighted by its default on a $197 million asset- backed loan from GE Commercial Finance Corporate Lending. A feverish search for $30 million in needed See Steve, Page 16 PHOTOGRAPHED BY TALAYA CENTENO AT CORIO, HOME OF “THIS IS BURLESQUE”; MODEL: IRINA GORBAN/ONE; HAIR BY PETE LENNON AT DE FACTO DE FACTO PETE LENNON AT HOME OF “THIS IS BURLESQUE”; MODEL: IRINA GORBAN/ONE; HAIR BY CORIO, CENTENO AT TALAYA BY PHOTOGRAPHED WWD.COM WWDTHURSDAY Sportswear ™ FASHION A weekly update on consumer attitudes and behavior based Basics are a seaside bore, so swimwear designers are revving up cruise on ongoing research from Cotton Incorporated 6 2009 with glam touches such as glitzed-up graphics. GENERAL START THINKING VALUE Following a mad dash for cash, retailer Steve & Barry’s came up short How Women Shop for Apparel During An Economic Downturn 1 and fi led for bankruptcy in Manhattan, along with 63 of its affi liates. First, the bad news: Tough economic times back in return, like all the places they’ll wear it, the Dorrit Bern stepped down as president and ceo of Charming Shoppes for consumers mean tough economic times for the compliments they’ll receive and the way it makes them 3 Inc. amid pressure from activist investors to boost profi tability. apparel business. The good news is that women feel whenever they have it on,” cites Betsy Thompson, Maidenform Brands Inc. promoted president Maurice Reznik to ceo, are still shopping for clothes today, just not like Director of Public Relations for The Talbots, Inc. 3 succeeding Thomas Ward, who will become chairman. they do when the economy is stronger. “It’s tough times for sure, and the need to adjust DENIM: Denim fi rms at Bread & Butter Barcelona took cues from the “One thing to keep in mind accordingly is a must if you are to 8 Seventies, with lighter colors and washes and distressed treatments. is that not all consumers act survive this climate,” says Steven exactly the same when shopping Kimmel, President of Bagir USA, BEAT: With summer jobs for teens scarce and their parents reeling from in difficult times, although most a manufacturer of the Nicole 9 the weakened economy, the back-to-school season could be a bummer. look to spend less and trade up in by Nicole Miller line sold at JC LETTERS: Lauded as one of the world’s most livable cities, Vancouver’s value,” observes Carol Davies, a Penney. “The typical customer has 10 residents celebrate its natural wonders with an eco-centric spirit. partner in marketing innovation to spend her limited budget on less France’s Carrefour said second-quarter sales grew 6.7 percent at constant consultancy Fletcher Knight. frivolous items.” exchange rates, despite a drop in hypermarket sales at home. What determines value differs Frivolity is taking a vacation even 12 from consumer to consumer, but at the higher end of the market, Davies pinpoints three behaviors shares Milton Pedraza, President EYE common to most women in of The Luxury Institute, a research Five days into her messy public divorce trial from philandering hubby their quest for value during an “Women think of value not just firm focused on the top 10 percent 4 Peter Cook, Christie Brinkley appears every inch the “Uptown Girl.” economic downturn. as what they paid for something, of America’s wealthy. “There’s “One attitude is to invest, to buy but what they get in return: all no question that the wealthy The supplement WWDSwim is included in this issue. classic and durable apparel that the places they’ll wear it, the consumer is cutting back right now. Classifi ed Advertisements...... 17-19 will last more than one season,” compliments they’ll receive and This whole idea of frivolousness she says. “The second attitude is to the way it makes them feel.” among every consumer is gone, To e-mail reporters and editors at WWD, the address is fi rstname. get as much newness for her dollar, — Betsy Thompson, but it will be back,” he promises. [email protected], using the individual’s name. so she shops the fast-fashion stores. The Talbots, Inc. Pedraza adds that the curve of this The final attitude is to stick with particular economic downturn her favorite brands, no matter what they cost, but to is shaped like a U, and not a V. “We’re going to be WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT walking on the ocean floor for a while longer before ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. buy less frequently.” VOLUME 196, NO. 7. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with But personal income and age also influence a we come up for air.” one additional issue in January, October and December, two additional issues in March, April, May, June, August and woman’s inclination to purchase apparel, in good Consumers appear to agree. In first five months of November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of times and bad, but in opposite ways: In an average 2008 (January through May), 23 percent of female Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided month, the amount she spends on clothes increases respondents told the Monitor that they felt somewhat by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/ with her income level but decreases with her age. to very optimistic about the U.S. economy, down 25 Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications For example, in Cotton Incorporated’s Lifestyle points from 48 percent making the same claim one Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: Monitor ™ survey, women with a household income year ago. In general, these same respondents waxed return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: below $25,000 spent $63.11. The amount spent more enthusiastic about their own personal financial SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA went up by income group: In the $25,000 to situations: At the beginning of 2008, 50 percent of 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit $49,999 range, they spent $76.15, at $50,000 to female respondents shared with the Monitor that www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new $74,999, it was $78.65 and at $75,000-plus they they are somewhat to very optimistic about their subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production spent $104.74. fiscal futures, yet this figure also dipped from 66 correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, But broken out by age groups, women age 13 percent in 2007. please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other “Every income level is feeling it and acting in Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list to 24 spent $87.16, and the amount declined as available to carefully screened companies that offer products and services that we believe would interest our readers. women got older: Those age 25 to 34 spent $82.91, more cautious ways,” Pedraza concludes. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA age 35 to 55, $80.33 and age 56 to 70, $74.55, the “Apparel has to answer another need in these 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, Monitor survey showed. times,” Bagir’s Kimmel concurs, and adds that OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, The influence of a woman’s age on her buying manufacturers need also to turn out as eco-friendly BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR habits may be a a product as possible. CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR reflection of what she Describe your outlook for the U.S. economy “She can not only DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. encounters at retail. January through May Percentage look updated and As women get older, 2007 2008 Difference current, but she can feel like a responsible they are typically less Very Optimistic 9% 5% -4 satisfied with retail’s citizen of the world,” offerings, data from Somewhat Optimistic 39% 18% -21 he says. the Monitor shows. Neither optimistic Regardless of the 27% 28% 1 In Brief When asked if current nor pessimistic economic climate, styles were boring, smart retailers Somewhat Pessimistic 15% 34% 19 ● EQUAL OPPORTUNITY: Louis Vuitton France said it signed 44 percent of female recognize that making Very Pessimistic 6% 14% 8 with Agefiph, a French company responsible for the place- respondents age 56 to the customer feel ment of the disabled in various organizations. “It will bring 70 agreed, compared good is the ultimate a richness to the company,” said Vuitton president Yves with 36 percent age 35 to 55. An exception were highway to making a sale. “Find what’s important Carcelle. In 2007, people with disabilities made up 3.6 percent younger women age 13 to 34: Only 20 percent to her, execute it, she’ll notice and snap it up,” The of Vuitton’s French employees. Its atelier in Asnieres, just out- agreed that current styles were boring, perhaps Limited’s Razek encourages. side Paris, is next to a center for the hearing impaired. “It has because they were the groups spending the most and There’s also the old school crowd for whom been a tradition for us to employ the disabled in the ateliers,” likely expecting the most. authenticity rules. said a spokesman. “To survive, retailers must get into a value Says Sokolove, “Many fashion insiders prefer the mindset,” says Scott Razek, Vice President of classics over the trendiest labels due to the inherent ● CLAIBORNE NAMES CIO: Liz Claiborne Inc. has hired Evon Marketing for The Limited. “We’re aligning our quality and timelessness of labels like Levi’s, Hanes L. Jones as senior vice president and chief information offi- current wardrobe with faster fashion pieces that add and Converse.” cer. Jones most recently held the same position at Bausch & Lomb, a Rochester, N.Y.-based contact lens firm. Jones starts specialty without breaking the bank.” This story is one in a series of articles based on find- According to Kate Parkhouse, spokesperson for at Claiborne on Monday and will be based at the firm’s admin- ings from Cotton Incorporated’s Lifestyle Monitor™ istrative facility in North Bergen, N.J. He reports to Michael JCPenney, price is paramount, but offering styles that tracking research. Appearing Thursdays in these Scarpa, chief operating officer and replaces John Sullivan, who resonate with consumers’ lifestyles will encourage left last year and is now cio at QVC. them to shell out more cash. “She is responding to pages, each story will focus on a specific topic as it the most innovative and exciting merchandise in the relates to the American consumer and her attitudes ● SILK ROUTE: Spinning more yards, Hermès has announced store, even at higher price points.” and behavior regarding clothing, the addition of one European stop for its Hilton McConnico- “Women think about value not just in terms of appearance, fashion, fiber selection and curated silk scarves show that started out at Hong Kong’s what they paid at the cash register, but what they get many other timely, relevant subjects. Pacific Place mall in June last year. The free exhibition will run Oct. 10-19 in the Museum of Contemporary History in Milan. WWD, THURSDAY, JULY 10, 2008 3 WWD.COM Shake-up Atop Charming Shoppes Via to Payless By Sharon Edelson with tripling Charming Shoppes’ revenue from $1 billion in 1995 to $3 billion in fi scal 2008. NEW YORK — Shares of Charming Shoppes Inc. rose 3 Alan Rosskamm, chairman of the board of Charming As Pres., CEO percent Wednesday after Dorrit Bern resigned as chair- Shoppes, will serve as interim ceo. man, chief executive officer and president amid a push by “We [Dorrit and the board] came to a mutual agreement By Sophia Chabbott activist investors to boost profitability. that this was the appropriate time for a change,” he said. Charming Shoppes is the leader in women’s plus-sized “Dorrit built a fabulous platform. I was on the search com- uAnn Via, former group divisional presi- apparel, which is the fastest-growing segment of women’s mittee that hired her. We hired her when the company was Ldent of Charming Shoppes’ Lane Bryant apparel retailing, with 2,400 doors. The demographic really in desperate straits, when the company was only and Cacique units, has been named presi- trends are in the company’s favor because the number of Fashion Bug.” dent and chief executive officer of Payless obese women in the U.S. expected to As Bern’s exit was made public, ShoeSource Inc. rise signifi cantly, but the retailer has LuAnn Via, group divisional president Via will report to Collective Brands Inc. been struggling with disappointing sales Dorrit Bern of Charming Shoppes’ Lane Bryant chairman and ceo Matt Rubel. Via starts later and profi t losses for the last two years. and Cacique units, was being named this month. Bern has been under pressure from president and chief executive officer of Collective Brands operates three units, institutional investors critical of the Payless ShoeSource Inc. including the 4,500-store Payless chain that company’s performance. For the fi rst The exits set off other executive focuses on affordable shoes with a fashion quarter, earnings improved, but comp- moves, with Brian Woolf, former chair- bent for women, men and children, as well as store sales were worse than expected in man and ceo of Caché Inc. replacing the 300-unit Stride Rite chain, and Collective every division, with consolidated sales Via. Thomas Reinckens, president of Licensing International, which specializes in down 13 percent. Charming Shoppes Caché, is taking over for Woolf. brand management in the fourth-quarter posted a $128.7 Rosskamm said the board has and global licensing million loss or $1.10 a diluted share, formed a committee to search for a new of a portfolio of youth excluding a one-time gain from an ceo and will be interviewing search and lifestyle fashion eminent domain settlement. Charming fi rms on Monday. A fi rm will be chosen athletic brands. Shoppes’ share price declined 60 per- next week. Rubel had led cent last year. “We’re looking for another great re- the Payless unit. He Retail sources speculated that Bern tail leader, a merchant with marketing joined the company was pushed out. She could not be instincts and leadership talents to run a in 2005 from Cole reached for comment. multibrand business,” Rosskamm said. Haan, a Nike sub- Despite a sharp stock market down- “We are pursuing the search with a high sidiary. Rubel’s role turn Wednesday, shares of Charming sense of urgency, but by no means any has been expanded Shoppes gained 14 cents, or 3 percent, sense of panic. I’m an interim, but I’m in the last year with to close at $4.84 in over-the-counter trad- not a lame duck. Collective Brands. ing. The company was one of the few “One of the keys to [turning the com- Rubel said Via’s specialty retailers to log an increase. pany around] is the need to recruit strong appointment will “I feel positively about what the leaders for each of the brands,” he said. allow him to focus on board’s doing to unlock shareholder “An important announcement today is the bigger picture, value,” said Robert Frankfurt, presi- the hiring of Brian Woolf, who has had a LuAnn Via including optimizing dent of Myca Partners Inc., an invest- 37-year career in apparel business.” current stores and ment fi rm that pressed for change at Scott Krasik, a retail analyst at CL international growth Charming Shoppes. King, said Charming Shoppes has a lot into regions such as Latin America. The corpo- Myca Partners, along with Crescendo of upside. “As we begin to cycle against ration will open its fi rst Colombian store soon. Partners, formed a Charming Shoppes the current [economic] downturn, the “There is absolutely an opportunity to Full Value Committee and took their company will be an established mul- bring great fashion at great prices,” said Via, case to shareholders and the press. tichannel operator that has by far the who plans to spend her fi rst 90 days at Payless The company fi red back in a federal largest database of plus-sized women observing and listening before developing lawsuit, alleging the investors fi led mis- customers in this country.” new initiatives. leading documents with the Securities Another analyst said Charming Via will be responsible for spearheading and Exchange Commission. Ultimately Shoppes units were in need of updating. day-to-day operations for Payless, includ- Charming Shoppes cut a deal and “You walk into a store and see a lot of ing merchandising, marketing and retail op- agreed to support the nominations of a things on sale, a mismatch of merchan- erations. Payless has locations across North, pair of retail veterans to the board. Alan Rosskamm dise,” said the analyst, who asked not to Central and South America, as well as the Bern will be leaving with an esti- be identifi ed. “The store presentation Caribbean. Collective Brands supports Payless’ mated $7 million to $8 million package. isn’t what it needs to be. Maybe there was corporate functions such as human resources Charming Shoppes said it expects to take an after-tax too much focus on growth and adding new stores and brands and information technology. charge, related to the terms Bern’s employment agree- and not enough focus on executing at the store level.” Payless has upped the fashion ante of late ment, in the range of $5 million to $6 million, or 4 to 5 Rosskamm said, “Overall, we need to be fashion-right with its House of Brands strategy partnering cents a diluted share. for our customers. We have the right trends in the store, with Abaeté, Lela Rose and Alice + Olivia on Bern joined Charming Shoppes as chairman, presi- but planned our inventory a little more basic and have not special collections. dent and ceo in August 1995 and is a respected retail vet- been meeting our consumers’ needs.” Before Charming Shoppes, Via was vice eran whose name surfaced as a possible successor to Paul Standard & Poor’s on Wednesday upgraded Charming president and general merchandising manager Pressler, former ceo of Gap Inc., during the search of a Shoppes’ stock, saying, “We believe the new board will of footwear, accessories, fi ne jewelry and inti- new leader in 2007. Before Charming Shoppes, she was seek to maximize shareholder value, partly with its new mate apparel for Sears, Roebuck and Co. and vice president of women’s apparel and group vice presi- ceo search. We think management will likely consider new senior vice president of general merchandis- dent of women’s apparel and home furnishings for Sears, strategies, including closing underperforming stores and ing development for Saks Inc. Roebuck and Co. Bern and her team have been credited streamlining apparel catalogue operations.” Maidenform Taps Reznik as Chief Executive By Karyn Monget However, we have the business and brands to fl y under these conditions.” Reznik said the long-term growth plan during Ward’s tenure as ceo contributed aidenform Brands Inc. has appointed president Maurice S. Reznik chief execu- year-end 2001 to 2007 compounded net sales growth of 10.3 percent, consolidated Mtive officer of the 85-year-old bra company. gross margin of expansion of 1,190 basis points “as we move to 100 percent sourcing Addressing his vision for Maidenform, Reznik said, “We have a strategy that is and deleveraging our balance sheet to a debt-to-EBITA ratio of 1.3 to 1.” multifold. International growth is a key component of our strategy….We feel we own In 2007, Maidenform reported net sales of $422.2 million, with the wholesale a lot of business there and we have a mulitchannel strategy. Our focus is to grow branded business increasing 8.7 percent over 2006. Total international sales in- our brands. We’ll be offi cially taking over the [licensed] Donna Karan and DKNY creased 34.7 percent to $38.4 million in 2007, while operating income rose 11 per- [intimates] brands on Jan. 1 and this will give us an opportunity with retailers we cent to $61.6 million. currently don’t do business with.” Ward said since the company went public in July 2005, debt has been reduced Maidenform signed a licensing deal with Donna Karan International in May to $88 million from $160 million. He said key factors that have bolstered growth to design, source and market full collections of intimates bearing the DKNY and and established strong brand equity include repositioning its role in 2002 as a mar- Donna Karan names. In addition to Maidenform, the company’s portfolio of brands keter rather than a manufacturer that included closing manufacturing facilities in includes Lilyette, Sweet Nothings, Rendezvous, Flexees, Subtract, Bodymates, Self Mexico, the Dominican Republic and Jacksonville, Fla., and opening an offi ce in Expressions and Luleh, an exclusive brand for Macy’s. Hong Kong. Reznik, president of Maidenform since April 1998, will succeed Thomas J. Ward Among the top-performing products in the fi rst quarter was a new shapewear on July 28. Ward, who was also vice chairman, will become the chairman. Ward, 61, brand called Control It and the full-fi gure bra business by Lilyette. A new full-fi gure has been ceo since July 2001 and was chairman from May 2004 to April 2005. The sports bra called Lilyette in Motion bows in stores this month. current chairman, David B. Kaplan, senior partner at Ares Management, will con- Regarding a successor as president, Reznik said, “The company is evaluating tinue as a board member. Reznik, 54, has also been named to the board. what’s appropriate. There is a strategy and we do have a search [for someone] Reznik said the economic climate “is challenging, not only for us, but for every- to take over some of my functions. We’ll be actively recruiting a head of sales body. From a macroeconomic condition, there are some things we can’t control. and marketing.” 4 WWD,WWD, THURSDAYTHURSDAY,, JULY 1010,, 20020088 WWD.COM Tr i al Style If justice is blind, Christie Brinkley certainly hasn’t gotten the memo. Five days into her wacky public divorce trial from philandering hubby Peter Cook, the supermodel is making a point to appear every inch the “Uptown Girl” for the ever-eager tabloid press. Armed with a uniform of crisp button-down shirts, dainty cardigans and fi gure-hugging pencil skirts from Ralph Lauren and Prada (with a little Gap mixed in for soccer-mom street cred), Brinkley has onlookers wondering what Cook was thinking — even if she was the one who pushed to air the family’s dirty laundry. She’s not the fi rst celebrity to rely on fashion at the courthouse, though more blameless than most: Everyone from Lil’ Kim to Martha Stewart has cleaned up for judgement day. And despite a few tears, Brinkley has been putting on a good show, strutting the halls of the New York State Supreme Court in Central Islip in style. After all, she knows better than anyone that looking good is the best revenge.

…in a Prada sweater, a Ralph Lauren Black Label skirt, with a Ralph Lauren Collection bag…

Christie Brinkley in a Gap T-shirt, a Prada dress and a Ralph dress and a Ralph …and in another Lauren sweater, with

▲ stylish look. a Marc Jacobs bag… …in a Ralph Lauren Black Label shirt, a Ralph Lauren Collection belt and a Prada skirt… AMBER WAVES ENGLISH ROSE Brit actress Felicity Jones likes to mix her SOME LEADING LADIES FIND JUDD APATOW’S IMMATURE media. This fall, she’ll be starring in one humor slightly misogynistic — “Knocked Up” star Katherine of this year’s most anticipated fi lms, as Heigl called the fi lm “a little sexist” in Vanity Fair. But Amber the pious Cordelia Flyte in director Julian Heard, who appears in “Pineapple Express,” Apatow’s latest Jarrold’s adaptation of Evelyn Waugh’s fl ick which opens Aug. 8, is more empathetic towards the classic novel “Brideshead Revisited.” director. Or at least not out to bite the hand that feeds her. Add to that a television adaptation of “No one is more honest about the relationship straight boys Jane Austen’s “Northanger Abbey” that have with one another,” says the 22-year-old. “Judd Apatow is appeared on England’s ITV channel last a teenage boy trapped in a grown producer’s body.” year, and the controversial play “That That much is apparent in “Pineapple Express,” a Face” that premiered at the Felicity Jones comedic caper in which the taste level is low and the London’s Royal Court theater characters are high (think “Cheech & Chong” meets last summer. All the while “Mission Impossible”). Seth Rogen and James Franco Jones has kept up her long- star as the ne’er-do-well stoners who unwittingly witness running role in the BBC’s a murder and promptly fl ee the scene. But when the duo celebrated radio soap “The realize they dropped a joint packed with an impossibly rare Archers.” “I’ve pretty much got all the genres covered,” says the 24-year- brand of pot (called, incidentally, “pineapple express”), old with a laugh. “But it keeps me on my toes.” they skip town, convinced the murderers will trace the weed to them and kill them next. Heard fi gures into the BOOK SMARTS: Jones, who’s been acting in television dramas on and off since romp as Rogen’s love interest and foil, the neurotic Angie she was a child growing up in Birmingham, England, took a break to study Anderson. “You meet Seth and Angie in the fi rst scene and English literature at Oxford University, graduating in 2006. “It’s given me the wonder, ‘In what world would these people be together?’” ability to deconstruct books, which is the same thing I do with a script — but says the actress. now I don’t have to write an essay at the end of it.” Offscreen, Heard is far more carefree. After being solicited Amber Heard by a model scout at 16, the Austin, Tex., native left her IN GOOD COMPANY: In “Brideshead Revisited,” Jones shares the screen friends and family for the big city. “I had the option to stay with a glittering cast that includes Emma Thompson, Michael Gambon, in Texas and fi nish high school or go to New York,” recalls Matthew Goode and Greta Scacchi. “It was intimidating, but in a good Heard. “Like any normal 16-year-old, it didn’t take me long to decide to go to New York.” way,” says Jones, who took the opportunity to learn from the greats. But after two years of “modeling and playing,” Heard was ready to pursue showbiz in earnest. She returned to “Every scene was such a master class — I became like a magpie.” Texas to fi nish high school. Almost immediately, she landed a small screen pilot called “Jack and Bobby” and a role on the prime-time football drama “Friday Night Lights.” FASHION PHILOSOPHY: The actress, whose fashion choices lean Those gigs gave her the courage to move to Los Angeles, where she booked forgettable teenage dramas and action towards 3.1 Phillip Lim and Joseph mixed with items from Topshop, is fl icks. When the script for “Pineapple Express” arrived, Heard says, “There was absolutely no way I was not going approaching the prospect of fi lm premieres with some trepidation. “It’s to do this project.” But she had to get the part fi rst. During her audition in front of Rogen, Apatow and “Pineapple” like getting dressed up for your usual Friday night out, but with so much director David Gordon Green, Heard was asked to improv her way through it. “It was the strangest thing I’ve ever more pressure…and publicity,” she says. done,” she says, still marveled that she made the cut. “Apparently I’m funny. I make people laugh a lot, but I’m defi nitely not in on the joke.” UP NEXT: Jones has just wrapped “Flashbacks of a Fool,” an independent This fall, Heard will show off her serious side opposite Billy Bob Thornton, Winona Ryder and Kim Basinger in British fi lm in which Daniel Craig plays a fading Hollywood star who revisits “The Informers.” And next year, she will team up with “Gossip Girl” star Penn Badgley in “The Stepfather.” the English seaside town where he grew up, following the death of a “Once I’m done selling my soul to the silver screen I will go back to my craft on the stage,” she says facetiously. So for now childhood friend. Jones plays Craig’s girlfriend in the fi lm’s fl ashbacks to the she’s staying put in L.A. and working on losing her Texas twang. “I think it’s gotten worse in my old age,” Heard jokes. “It’s Seventies. “[Our characters] are obsessed with Roxy Music and David Bowie, probably the heavy drinking.” which is my parents’ era, so I got to share their cultural goods,” says Jones.

— Amanda FitzSimons — Nina Jones BRINKLEY FROM LEFT: PRESS/RETNA LTD.; TRUNGT/CAMERA TODD WILLIAMSON; JONES BY HEARD PHOTO BY NEWSDAY/MCT/LANDOV REUTERS/SHANNON STAPLETON/LANDOV; AP PHOTO/MARY ALTAFFER; UPI PHOTO/LANDOV; Is keeping track of your inventory keeping you from your business?

Get back to business.

Get started right now with a 30-day FREE trial. Go to www.QuickBooks.com/POS or call 1. 800.450.7496. 6 WWD, THURSDAY, JULY 10, 2008

Stage Struck Basics are a bore, so swimwear designers are revving up cruise 2009 with glam touches such as glitzed-up graphics and fl amboyant trims. — Kim Friday

Jantzen’s polyester and spandex swimsuit worn with Trasteverine’s bamboo cape. LaCrasia gloves; Fogal hosiery; Bruno Frisoni shoes. WWD, THURSDAY, JULY 10, 2008 7 WWD.COM

Tommy Hilfi ger’s nylon and spandex bikini top and Steinunn’s cotton and woven metal skirt. CC Skye earrings.

Betsey Johnson’s micro nylon and spandex bikini top and Sass & Bide’s silk ruffl e (worn as a skirt). R.J. Graziano necklace; LaCrasia gloves; CC Skye bangle. FOR REDKEN; MAKEUP BY MISUZU MIYAKE USING MAKE UP FOR EVER; FASHION ASSISTANT: KIYANNA STEWART KIYANNA ASSISTANT: USING MAKE UP FOR EVER; FASHION MISUZU MIYAKE FOR REDKEN; MAKEUP BY

Lunazul’s polyamide and spandex swimsuit and Sass & Bide’s silk ruffl e bolero.

Maryan Mehlhorn’s polyamide and Dow XLA swimsuit with Kova & T’s nylon and spandex lace skirt. Pretty Young Thing’s brooch (worn in hair); LaCrasia gloves; Wolford hosiery; Look from London socks; L.A.M.B. ankle boots. PHOTOGRAPHED BY TALAYA CENTENO AT CORIO, HOME OF “THIS IS BURLESQUE”; MODEL: IRINA GORBAN/ONE; HAIR BY PETE LENNON AT DE FACTO DE FACTO PETE LENNON AT HOME OF “THIS IS BURLESQUE”; MODEL: IRINA GORBAN/ONE; HAIR BY CORIO, CENTENO AT TALAYA BY PHOTOGRAPHED 8 WWD, THURSDAY, JULY 10, 2008 WWD.COM Denim Report Lighter Feel Blooms for Spring By Barbara Barker senting more than 100 countries. “We want to grow, but not at the expense of quality,” said BARCELONA — Denim companies exhibiting at last Müller, adding that he didn’t feel the declines in exhibitors week’s Bread & Butter Barcelona fair were taking their and attendance were indicative of a crisis. fashion cues from the Seventies, embracing lighter But some attendees felt the show was “fl at” and had colors and washes, and moving back to slightly regressed to becoming primarily a jeans and streetwear distressed treatments for spring. fair. Laura Schumacher, American owner of the Spain- Trends included clean, based Web site espadrillesetc.com, which sells hand- stripped-down silhouettes and stitched espadrille styles and coordinated handbags, said a lighter, laundered denim. she had diffi culty fi nding new and innovative products. Distressed and vintage wash- “I really want to jump on some- es with tears and patches thing new and I haven’t found it,” were prevalent, while leg Schumacher said. “The fi rst year, you openings ran the gamut could discover lots of niche labels. from skinny drainpipes, Now, the show is for big brands only.” boot-cut and wide-leg styles. Rick Spielberg, vice president of Wrangler’s summer col- Los Angeles-based Hudson Jeans, lection, called Flag, features acknowledged a change in the at- traditional American fl ag motifs, mosphere. stripes and Western detailing. “The show is quieter than last “We have expanded our lines with year,” he said. “There are not that additional casualwear items and accessories many premium stores here, which in order to compete in the higher end of the mar- tells me more retailers are shopping ket,” said Simon Dowling, commercial director. locally in their respective countries.” Milan-based Sweet Years featured a Seventies Despite the woes, several pre- PHOTOS BY MATTI HILLIG MATTI PHOTOS BY “California Dreamin” theme with ruffl ed denim mium denim labels are achieving Attendance among exhibitors and buyers declined this year. sundresses, skirts, playsuits and a new line of signifi cant growth. puckered Western-style shirts in stretch cotton. “In Europe, we’re 100 percent global market share by opening their own branded stores. The label introduced a nondenim line of gym ahead of last year and it’s the same “Their role is to drive revenue and profi t, and they rep- separates in high-tech fabrics and snappy colors in Canada, Australia and the U.S.,” resent a window to the world for us,” said You Nguyen, dubbed Move Up. The line wholesales for 35 to Spielberg said. “If you have the right senior vice president and creative director of Levi’s. “We 60 euros, or $55 to $95 at current exchange. Items from Sweet Years. product, you’re outside the bubble will continue to roll out new stores and renovate existing In some cases, exhibitors said they were re- of economic conditions.” locations well into next year.” defi ning their merchandise to include additional denim Deepak Gayadin, executive vice president of North Levi’s aims to have between 550 and 600 retail items. American sales at G-Star, said, “We’ve had an amazing sea- units by yearend. “Denim is more and more important to our product son and our reorders for 2008 have doubled.” Custodio Dalmau, co-owner of Custo Barcelona, also mix,” said Colin Clarke, U.K. sales director of Firetrap. For spring, G-Star is moving away from vintage looks has signifi cant retail expansion on tap. The company “Currently, it’s about 28 percent. We’d like to see it grow to and focusing on natural worn-in styles and lighter washes. plans to open stores in Honolulu, San Diego, Miami’s at least 35 percent. Denim is a 12-month business and it’s “We’re moving away from stiffness,” said Gayadin, add- South Beach and a third store in New York by October, easy to replenish stock.” ing that fi ts are more comfort-conscious and the hot new giving it 18 U.S. locations. Additional openings include Firetrap sells to 300 doors in the U.K., its principal silhouette is a dressier chino. 22 franchised shops in Kuwait, Saudi Arabia and the market. Spring styles feature workwear fabrics like ticking G-Star used the show to showcase its fi rst nondenim United Arab Emirates by the end of next year. Seven stripes, lighter washes, chambray and twill. line, called Raw Correct, a tailored 40-piece collection fea- locations in Brazil are pending, he said. While still attracting a sizable crowd, evidence of a slow- turing outerwear, suits, dresses, skirts, hoodies and knits Nguyen said the impact of rising food and energy costs ing global economy showed during the fair that ended its in luxury fabrics such as cashmere, silk and leather. Set to that have affected the U.S. market are beginning to be three-day run on July 4. Exhibitor participation slimmed launch in January, the line’s price points will start at $50 felt in Europe. by 60 from the January edition to 893 brands. The number for T-shirts and reach as high as $200 for jackets. “From a European perspective, it hasn’t hit us like the of visitors attending on the fi rst day dipped to 30,500, about The line will be important for the U.S., where the brand rest of the world, but we do sense a defi nite slowdown, par- 500 less than a year ago. For the fi rst time since the Berlin- operates 120 franchised stores, with an additional 50 ticularly in the south of Europe,” he said. organized sportswear and contemporary apparel show planned by yearend. Units will open in New York’s SoHo Levi’s spring styles focus on sun-drenched colors. Key took root in Barcelona three years ago, overall attendance neighborhood by September and in Miami by Thanksgiving. silhouettes include short shorts under a sleeveless duster decreased to 89,168, a decline of 2.5 percent over last July. Plans are under way for stores in Los Angeles, Santa coat, pants with exaggerated fl are and baby-doll dresses Karl-Heinz Müller, founder and managing director, Monica, Calif., Las Vegas and midtown Manhattan. over cropped jeans for what Nguyen called “a more street- said 72 percent of attendees were foreigners repre- Denim companies placed emphasis on growing their driven contemporary denim look.” Anticipating Slow Fall, Retailers Shift Assortments Away From Premium By Ross Tucker core Levi’s brand had only small declines Retailers and vendors have been wait- “How are you going to move your busi- during the quarter, retailers’ responses to ing to get through the late winter and ness? Premium is the hard way to move he back-to-school season is shap- the delay was telling. spring months to get a clear picture of forward,” Gelfuso said. “Some owners are Ting up to be disappointing for the “Issues continued with respect to consumer behaviors, one not colored by getting that and getting around it. I see and denim industry. fulfi lling customer orders in a timely variables like weather, Silver said. Now hear more people wanting to move lower.” As retailers begin stocking shelves manner and this did result in some cus- well into summer, the issue is apparent. Gelfuso believes store owners are with initial fall merchandise at the end tomer cancellations,” said Robert moving as quickly as they can of the month, they are keenly aware that Hanson, president of the North to lower-priced models, but ex- momentum isn’t on their side entering American region. Retailers have noted a drop in foot pects that most will stick with b-t-s. Evidence of slowing sales in the Hanson acknowledged that some traffi c as the summer has progressed. the top two or three premium U.S. began appearing at the beginning of retailers struggling to make sales brands in order to fi t the needs the year. VF Corp. saw sales in its jean- may have taken advantage of the of older customers. Younger cus- swear segment — the company’s oldest company’s delays to cancel orders. tomers, however, seem to be less and largest business and home to the Industry sources said retailers are interested in spending upward Wrangler and Lee brands — fall in the looking to minimize their denim ex- of $200 on jeans. As a result, fi rst quarter. Jeanswear revenues slid 6.4 posure and shift assortments toward Gelfuso also anticipates a surge percent to $712.2 million during the fi rst lower price points. of brands entering the market at three months of the year. “Women’s denim is generally sub-$150 prices. “The fi rst quarter is not representa- down at retail,” said a source “You’ll see a lot of imposters tive of what we expect from our jeans- working on the supply side of the show up with cheap stuff,” he wear business for the rest of the year,” denim business that works with said. “I think that will just be part Eric Wiseman, president and chief ex- several of the industry’s largest of the process.” ecutive offi cer, said in a conference call retail chains. Wall Street analysts are still with analysts. The source said a major spe- upbeat on premium players such However, rising energy, gas and food cialty store retailer had called this as Seven For All Mankind, True prices have persisted and consumer spend- week asking that fall denim deliv- Religion and Joe’s Jeans. ing has continued to contract. VF will re- eries be delayed by two months. Eric Beder, retail analyst at port second-quarter earnings on July 15. “Nobody knows what to do,” said the “Traffi c is down,” Silver said, and as Brean Murray, Carret & Co., said in a On Tuesday, Levi Strauss & Co. re- source. “I don’t think anybody can stra- a result, more brands are entering the research report that True Religion can ported that revenues for the Americas tegically plan, and what’s even worse is market at lower price points. “Value achieve double-digit growth for the year plunged 19.3 percent to $477 million dur- there’s really no new product out there.” is no longer a dirty word in the denim in its wholesale business with premium ing its second quarter, compared with $591 Michael Silver, founder of the moderate- business. Value is good.” denim alone. million in the same period a year ago. The price Silver Jeans and premium 1921 label, Ron Gelfuso, president of the Fresh “We note the company literally of- bulk of the decline was attributed to prob- said a fall slowdown was anticipated. Ink denim label, said boutique and small fers hundreds of denim styles com- lems encountered in implementing a new “Any smart person in the industry chain-store owners have told him they pared to a handful at their key depart- management system that resulted in ship- has been bracing for this for about eight increasingly feel the need to stock lower- ment store partners,” Beder said in a ments being halted for a week. While the months now,” he said. priced labels. research note in June. WWD, THURSDAY, JULY 10, 2008 9 WWD.COM The Beat Battling Back-to-School Challenges By Julee Kaplan ith summer jobs for teens scarce and their parents Wreeling from the weakened economy, the apparel industry is bracing for what could be a bumpy back-to- school season. Industry executives fear that declining summer income for teens, coupled with tepid consumer spending because of high gas and food prices, tight credit and the housing slump, will translate into a drop in spending for b-t-s, which is the most important selling season after Christmas. “I would anticipate that there will be some drop in back-to-school spending,” said Rob Callender, trends director for Northbrook, Ill.-based Teenage Research Unlimited. “Besides their own jobs, for teens, their par- ents are a big source of their money. We are fi nding that as parents spend more on things like energy and food, teens are having to cut back. They are learning that in this economy, ‘no’ really does mean ‘no.’” Callender said during the past few years, parents have been sacrifi cing more to allow their teens to have more of what they want. But as the economy has worsened, and parents lose their jobs at a faster rate, teens are learn- ing quickly that there just isn’t the money for indulgences like new clothes, when the basic needs for books, com- puters and other school supplies take precedence. “Overall, teens tend to be a confi dent group, but they are a little shaky now,” he said. Employers cut 62,000 jobs in June, the sixth straight Op’s back-to-school ad for Wal-Mart. month of job losses. The unemployment rate held at 5.5 also planning a huge marketing cam- percent after spiking half a percentage point in May. On Monday, Kohl’s Corp. said it will paign to surround these launches. The For teens, the unemployment rate jumped from 15.4 launch its biggest marketing campaign chain hopes that these brands will help percent in April to 18.7 percent in May, the highest level ever surrounding the b-t-s season. The strengthen its already more than $1 billion since 2003, according to a recent report by the Center campaign, which includes a combination of business in the area. for Labor Market Studies at Northeastern University. 30- and 60-second television spots, print ads in “We are looking at building on our And many parents are scrambling to fi nd jobs — even Cosmogirl and Seventeen magazines, billboards in strength,” Liz Sweney, Penney’s executive vice those that pay minimum wage — which means more Milwaukee and New York and in-store promotions and president of women’s, told WWD last month. “Juniors is competition for teens. The result, the Northeastern contests, was designed to attract what the company calls a signifi cant growth opportunity.” report said, is that only one in three teens will be em- a “cross-generational group of shoppers.” The ads will Macy’s Inc. is preparing for the season by planning to ployed this summer. feature stars such as Lenny Kravitz, Avril Lavigne (who run a documentary series on YouTube.com beginning in In 2007, families with school-age children spent will be decked in her own line, Abbey Dawn, launching September. The series will plug the retailer’s exclusive $7.6 billion on clothing and accessories, out of $18.4 in the fall), Hayden Panettiere, Vanessa Carlton, Plain American Rag label, which is sold on the junior fl oor. billion total b-t-s spending, according to a survey White T’s and The Red Jumpsuit Apparatus. Wal-Mart Stores Inc. is also gearing up with two new by BIGresearch for the National Retail Federation. J.C. Penney Co. Inc., which said it will cut 2009 capi- exclusive brands in the junior area — L.E.I. and Op. Although overall spending increased 4.5 percent from tal expenditures to $650 million from $1 billion and re- The Op brand will hit stores with a marketing campaign 2006, the clothing category was fl at, as consumers spent duce store openings and renovations, plans to approach featuring seven young stars — Rumer Willis, Kristin an average of $231.80, compared with $228.14 in 2006. the b-t-s season aggressively. It is rolling out of three Cavallari, best known for her role on “Laguna Beach,” Retailers will have to pump up their offerings this new brands in its junior area — Decree, Fabulosity Christina Milian, Josie Maran, Pete Wentz, “High School year in order to entice these shoppers. by Kimora Lee Simmons and Le Tigre. The store is Musical” star Corbin Bleu, and Wilmer Valderrama. A New Crop of Stars Prepares for Sales t’s almost go time for a new round of delebrities — “Retailers are hungry for more,” Stone said. “I’m Icelebrities as designers. sure there will be some failures. The key is that in The trend doesn’t seem to be slowing, as the new- order for them to survive, there has to be longevity in est crop of actors and entertainers prepare to enter the the celebrity. The retailer has to be able to see a future industry and unveil their lines for fall. LL Cool J will for the brand.” hit Sears stores with a full range of apparel for juniors, While many of the newer celebrity brands have been young men and children; Avril Lavigne will launch her geared to the teen and tween customers, Davis’ line will Abbey Dawn line at Kohl’s; Rachel Bilson’s Edie Rose sit in the better sportswear area at Belk stores. for DKNY Jeans brand will take the fl oor at depart- “It’s become clearer and clearer that our customers ment stores, and Kristin Davis will soon be selling her want more on our better fl oor,” said H.W. McKay Belk, line on the better fl oor at Belk. president and chief merchandising offi cer. “This is an While the track record of celebrity apparel lines has opportunity to put something there that’s much stronger. been fi lled with missteps — Jennifer Lopez’s collec- Customers are gravitating to what’s new in the stores. tion has gone through numerous iterations; Beyoncé Rachel Bilson LL Cool J What’s old and hasn’t really changed is not that exciting.” Knowles’ House of Deréon line had a slow start; Eve’s This new crop of celebrity-designers will walk a path Fetish collection never succeeded, and Diddy’s wom- blazed by Lopez, Knowles and Gwen Stefani, as well as en’s line never got off the ground — the allure of the the Olsen sisters, who have a multitier business, encom- category hasn’t dimmed. Retailers are responding by passing everything from sportswear to area rugs as part securing these personalities with exclusive lines in- of their more than $1 billion empire. tended to generate buzz for the stores. Other celebrities in the fashion game are: “From Wet Seal to J.C. Penney, stores are all looking ● Justin Timberlake with his William Rast Southern- for the next big thing to be able to bring in new custom- inspired contemporary sportswear. ers,” said Michelle Roback, a sales executive with Jerry ● Jessica Simpson has shoes, bags and outerwear, Leigh, a licensing fi rm in Los Angeles that had a major while Pamela Anderson has lingerie. role in the deal between Lavigne and Kohl’s. “Bringing in ● Jaime Pressly launched a line of contemporary this sort of talent can certainly do that for these stores.” sportswear and Hilary Duff has sportswear and acces- But the forecast is mixed as to how these brands will sories. ● perform once they hit the sales fl oors. Avril Lavigne Kristin Davis Sarah Jessica Parker and Amanda Bynes made “Avril has her own funky style.…But I’m not sure I deals with Steve & Barry’s, which fi led for bankruptcy could see her making supergirly dresses if the trends Wednesday. move in that direction, so I really don’t see this brand girls seeking out clothing from LL Cool J for themselves ● Victoria Beckham and Sheryl Crow have denim as a long-term thing,” said Lisa Chase, founder of to wear,” she said. “Rachel Bilson, on the other hand, is a lines, and Kate Moss has a Topshop line. CelebrityEverything.com, a Web site for the celebrity- modern classic. She has great style and girls will want to ● Sienna Miller has Twenty8Twelve by s. miller, a obsessed crowd. dress like her. I could see her line lasting a long time.” contemporary collection, with her sister, Savannah. Chase sees LL Cool J working well for guys, since Michael Stone, president and chief executive offi cer ● “The Hills” star Lauren Conrad has contemporary he “has the best pecs in Hollywood.” However, she isn’t of the Beanstalk Group, a brand-licensing agency that sportswear, and Heidi Montag, also from “The Hills,” sure a junior apparel line from LL Cool J would work works with celebrities such as Mary-Kate and Ashley has a collection with California retail chain Anchor quite the same way. Olsen and Paris Hilton, said celebrities must have stay- Blue called Heidiwood.

BILSON PHOTO BY STEVE EICHNER; LL COOL J BY KYLE ERICKSEN; DAVIS BY JOHN AQUINO; LAVIGNE BY LARRY MARANO/GETTY IMAGES BY JOHN AQUINO; LAVIGNE BY ERICKSEN; DAVIS KYLE STEVE EICHNER; LL COOL J BY BILSON PHOTO BY “With all the competition out there, I really can’t see ing power for their brands to work. — J.K. 10 WWD, THURSDAY, JULY 10, 2008 WWD.COM

FROM started my line 10 years ago, it was impossible to fi nd ER T stores willing to carry anything local,” Smith said. T “Now ‘local’ or ‘Made in Canada’ is a whole category.” E L “Vancouver is transitioning from a needle-trade- 8 0 0 2 based to a design-based fashion industry,” observed 0, JULY 1 VANCOUVERVANCOUVER Glencora Twigg, an owner of the Twigg and Hottie boutique. Big-volume manufacturing has moved off- shore, so smaller factories in the region produce lower volumes for up-and-coming independent designers. “Vancouver’s strength is its youth. There is a huge en- thusiasm for our young designers — many working with eco-friendly fabrics and applying larger sustainable practices into their businesses.” The fi ve-year-old boutique in the Main Street shop- ping area showcases over 50 Canadian designers, tagging items as “Canadian Made,” “Locally Made,” “Sustainable,” “Recycled” and “One-of-a-Kind.” “For our Vancouver customers, a local design is enough,” says Wendy de Kruyff, owner of Dream, a 15-year-old boutique in the Gastown neighborhood. “Eco-friendly fabric is a bonus — it’s the tourists who fi nd it more interesting.” With the greater merchandise assortment, the Vancouver shopping scene has thrived with a mix of formats and decentralized fashion districts. Big-brand stores and boutiques are blended in all kinds of shop- ping set-ups: urban malls, strip centers, shopping vil- lages and street-front shops. The independent spirit does not mean the main- Skyscrapers and sky-high mountains stream has taken a backseat to upstarts, however. coexist peacefully in Vancouver. Anticipating an infusion of tourist dollars before, dur-

PHOTOS BY TOURISM VANCOUVER PHOTOS BY ing and after the 2010 Olympics, Toronto-based Holt Renfrew opened a 137,121-square-foot store on May 31, 2007. Still within the footprint of downtown’s upscale Pacifi c Centre, the unit doubled the Canadian retailer’s fl oor space from its other site in town, adding a salon Going Young, Green and Local and spa, with rooftop fi ne dining coming next year. H&M also came to town, opening two additional Greater By Mina Williams as the eight area design schools, provided a foundation Vancouver units last year. for a vibrant crop of hometown independent designers. Other Pacific Centre retailers — like Banana LAUDED AS ONE OF THE WORLD’S MOST LIV- “Given the geographic location, there are strong con- Republic, MaxMara, Club Monaco, Hugo Boss and able cities — with the Pacific Ocean on three sides nections to Asia, a cultural diversity and beautiful natu- Esprit — also are bullish on the downtown mall. This and a mountain range shadowing it on the fourth — ral surroundings,” explained Debra Walker, executive di- spring the fi rst western Canadian Teenfl o store opened. Vancouver’s residents celebrate its natural wonders rector of British Columbia Fashion Week, next scheduled The walkable downtown core has attracted other with an eco-centric spirit all their own. Sept. 22-26, and featuring shows by local talent. “Our de- high-end design outlets like A|X Armani Exchange, “As a major cosmopolitan city on the Pacifi c Rim, signers are not afraid to try different things with design BCBG Max Azria, Club Monaco and Mexx, next to home- Vancouver is at the center of international trade and tour- and fabric. We are a new city, testing standards as a teen- grown Canadian retailers Roots, MAC, Lush, Aritzia, ism with a thriving port, the largest in Canada,” explained ager would, and creating new traditions.” Boys Co. and Lululemon on fashionable Robson Street. Gary Balaski, general manager of Vancouver’s Holt “Independent, small de- Renfrew, the prime luxury retailer in the region. “The [run- signers defi ne Vancouver,” up to the] 2010 Olympics have encouraged unprecedented asserted Sarah Murray of investment and growth in infrastructure, residential and Fashion High, a not-for- business development, including the retail sector.” profi t network of fashion in- “We fi nd Vancouver to be a city with a variety of in- dustry professionals. “There ternational and local designers available to shoppers,” are lots of entrepreneurs. said Dace Moore, designer for Vancouver-based dace. When it comes to sustain- “The boutiques here are fantastic. The shopping is ability, there is a real dirt- amazing. This is something we realize more and more to-shirt movement here.” coming home [after being] away from the city.” The indy spirit also is The past fi ve years brought a convergence of fashion, opening doors for design- fi lm, music and art in Vancouver, or “Hollywood North” ers. Allison Smith, designer as it is dubbed, due to the infl ux of movie projects. That of Allison Wonderland, said, elevated the communal fashion sense from layered “After the quotas were lifted fl eecewear with anorak raincoats to updated styling, for offshore manufacturing, with shoppers now sporting smart denim pants, trendy local factories lost work or T-shirts and one-of-a-kind jackets. closed down.” Holt Renfrew’s redesigned 137,000-square-foot fl agship. The increased style awareness also accompanied the As a result, Vancouver Right: The Twigg and Hottie boutique showcases more than city’s fervor for earthwise concerns and heightened de- factories chose to produce 50 Canadian designers, tagging items as “Canadian Made.” mand for green-designed lines. This eco-desire, as well smaller runs. “When I VITAL STATS SCENE CITY POPULATION: 600,000 From the sea and snow-capped mountains to its vibrant restaurant and pub action, Vancouver shines as a world-class city. REGION POPULATION: 2 million AVERAGE ANNUAL RETAIL RENT: Downtown Robson Street: HOLLYWOOD NORTH: Vancouver’s fi lm industry thrives due to the Tasting Room, offering cured meats and cheeses only. $180 to $240 a square foot; Trendy Yaletown: $35 to $70 a favorable exchange rate and lucrative tax incentives. Bringing Local hotels also have top dining rooms. Elixir at the Opus square foot. productions back are its studios, updated equipment and Hotel is one of the city’s best bistros, while Uva Wine Bar at EMPLOYMENT GROWTH RATE: 3.2 percent (2007) experienced crews. Current projects include “Elegy” starring Moda is a wine and spirits sanctuary. CITY UNEMPLOYMENT RATE: 4.5 percent (May 2008) Penélope Cruz and Sir Ben Kingsley; “Tin Man” with Kathleen After a long winter and soppy spring, summer celebrations NATIONAL UNEMPLOYMENT RATE: 6.1 percent (May 2008) Robertson and Richard Dreyfuss; “Trouble Man” starring Chris in Vancouver head outdoors, with trendy locals favoring laid- NUMBER OF HOUSES SOLD IN GREATER VANCOUVER Tucker and Eva Mendes, and “Christmas Cottage” with Jared back bistros to watch the sun dip in the Pacifi c. Joe Fortes (2007): 38,978; 102,892 for British Columbia. Padalecki and Peter O’Toole. Seafood & Chop House’s year-round roof deck is best enjoyed AVERAGE PRICE, SINGLE-FAMILY HOME (2007): $556,601; under the sun, and don’t miss the circular oyster bar. Sequoia $428,059 in British Columbia. BON APPETIT: Local chefs coax the best out of home-grown Grill at the Teahouse in Vancouver’s Stanley Park boasts a MAJOR INDUSTRIES: Port of Vancouver, 62,200 jobs, ingredients. Lumiére offers European sophistication, modern patio with a 180-degree ocean backdrop. B.C. spot prawns trading over $42 billion in goods; tourism, 120,400 jobs, French spirit and Canadian resourcefulness. The owners were named Vancouver Magazine’s 2008 “Ingredient of the $5.4 billion in revenues; fi lm industry, 50,000 jobs, $1 partnered with Daniel Boulud’s Dinex Group to open an outpost Year.” But get ’em while you can — the summer season is just billion in revenues. of DB Bistro Moderne this August. At Cioppino’s, celebs and six to eight weeks. OTHER KEY LOCAL INDUSTRIES: Forest products, mining, corporate power players enjoy rustic Italian fare. Blue Water Cafe, fi nancial services, real estate, construction, technology and C Restaurant and West are sea-centric spots keeping up with eco- GETTING AROUND: With a city surrounded on three sides by biotechnology. conscious aspirations of local patrons. water, commuters often turn to seafaring. False Creek Ferries TOP COMPANIES: Elus Corp., Jim Pattison Group, Teck The restaurants, and about 40 others, subscribe to the connect downtown with Granville Island and the south shore. Cominco, Finning International, Best Buy Canada. Vancouver Aquarium’s sustainable fi sh industry initiative. Cru, Aquabus Ferries shuttle fi ve million passengers between LEADING FASHION FIRMS: Lululemon, Mac & Jac, Kenzie, with a color-coded list pairing wines with each plate, has the downtown and the north shore. SkyTrain light rail service dace, Aritzia, Sugio (Cannondale), Lily + Jae, Syke Textiles. smartest wine selections in town. Have it your way at So.Cial at Le connects all of Greater Vancouver. Bike through 14 greenways ● Vancouver is the largest city in the province and third largest Magasin, a trio of eateries in a 1911 spot featuring indoor dining, on 87 miles of bike paths, the most spectacular being a city in the country, with 13 percent of Canada’s population. outdoor patio, take-out deli, charcuterie and butcher shop. 6.2-mile loop along the seawall around Stanley Park. ● British Columbia’s economy expanded 3.1 percent in 2007, Some of the season’s best dishes are at Fuel Restaurant, which outpacing Canada’s economy for the sixth year. Only provinces serves up local products like Fraser Valley free-run lamb, Sloping COMING SOON: Shangri-La Hotels and Resorts, the Asian-based with energy industries — Newfoundland, Alberta and Manitoba Hills’ organic pork and line-caught Scott Island lingcod. Goldfi sh luxury group, will open its fi rst North American hotel in — grew faster. Pacifi c Kitchen has a splashy room and Asian-infl uenced menu in Vancouver in January, with a complex of hotel rooms, restaurant, SOURCES: CITY OF VANCOUVER, BC STATS, BC BUSINESS. trendy Yaletown. An acclaimed restaurant with no kitchen is Salt live-work units, condos and penthouses. WWD, THURSDAY, JULY 10, 2008 11 WWD.COM A retailer’s corporate reputation is key to its overall success. New York-based Reputation Institute has released its third annual Global Pulse Study, which TheWWDList analyzes 600 of the world’s largest companies based on revenue (150 are U.S.- based), by ranking the overall trust, esteem, admiration and good feelings consumers have toward them. The fi rm also factors in reputation drivers such as innovation, workplace, citizenship and performance. A total of 25 U.S.-based retailers were analyzed. “We consider scores in the 60s to be above average, and companies who scored in the 70s are very strong, reputable companies,” said Anthony Johndrow, managing director. Below, a closer look at the top U.S. Corporate Cachet retailers, along with their efforts to enhance their corporate reputations. A few apparel and department store names fell just short of the top 12, including Top U.S.-based retailers ranked by corporate reputation scores. Target (15), Nordstrom (19) and Wal-Mart (24). — Cecily Hall COSTCO WHOLESALE CORP. Global Pulse Score: 74.33 The Issaquah, Wash.-based company operates 537 warehouse stores that offer groceries, electronics, jewelry, home goods, apparel, health and beauty aids and other products. “Customers value their membership with Costco,” said Johndrow. Priceviewer.com noted that the company is a 1 retailer that “does it right, paying well and offering generous benefi ts.” Richard Galanti, Costco’s chief fi nancial offi cer, told the site, “If we pay better than average, provide a salary people can live on, have a positive environment and good benefi ts, we’ll be able to hire better people.”

WALGREEN CO. Global Pulse Score: 73.01 This drugstore chain has a commitment to creating a diverse group of employees, and it is seeking technology specialists to improve its innovation efforts. In addition, Walgreens donates millions of dollars to such charities as the American Lung Association, American Cancer Society and 2 United Way. These attributes are key dimensions that heighten its reputation as a good corporate employer, said Reputation Institute. The retailer, based in Deerfi eld, Ill., sells personal products, apparel, toys, electronics, household items, and beauty and skin care products, among other items.

TOYS ‘R’ US INC. Global Pulse Score: 72.86 Though this toy and baby products retailer was losing market share to larger retail giants such as Wal-Mart a few years back (it shuttered its Kids ‘R’ Us chain in 2004), the Wayne, N.J.-based company is back on its feet, boasting more than 1,500 freestanding destination toy and baby specialty 3 stores worldwide. The retailer has implemented a Guest Relations Team, which provides customer service through e-mails and phone calls. The company also has a convenient product recall section on its site, in order to keep its customers up-to-date on the latest in toy and product recalls.

OFFICE DEPOT INC. Global Pulse Score: 72.59 In 2007, Offi ce Depot sold $15.5 billion in offi ce products and services to consumers and businesses. The Delray Beach, Fla.-based offi ce supply company is also heavily involved with community efforts. “Through partnerships with organizations as wide-ranging as City of Hope, Toys for Tots, 4 America’s Second Harvest…Offi ce Depot provides our associates with opportunities to support our core values,” the company said. The retailer also has an initiative in place to support female entrepreneurs and women-owned businesses.

BEST BUY CO. INC. Global Pulse Score: 72.08 The nation’s largest consumer electronics retailer delivered robust earnings on strong sales last year — “further evidence that shoppers are doling out more money for GPS navigators and game consoles than for apparel and shoes,” WWD reported. In January, Brenda Mathison, director of 5 environmental affairs for Best Buy Properties, said at the National Retail Federation’s Annual Convention and Expo, “There’s no department that environmental affairs doesn’t touch.” WWD also stated, “Best Buy is producing green products and packaging in its Insignia private label line.”

STAPLES INC. Global Pulse Score: 72.01 Staples, based in Framingham, Mass., has a section on its Web site titled “All Product Reviews,” which empowers its customers to provide details about the company’s offerings. The offi ce superstore prides itself on its dedication to the back-to-school population — it commemorated Tuesday, 6 July 8, as the offi cial start to the b-t-s season. “We analyzed historic trends and feedback from parents and schools, and added our in-depth knowledge of shopping patterns to determine the offi cial start of the season,” said John Mahoney, vice chairman and chief fi nancial offi cer.

LOWE’S COMPANIES INC. Global Pulse Score: 71.76 As a home building supply chain, it’s only fi tting that the organization would involve itself in rebuilding efforts across the country. In 2007, the Lowe’s Charitable and Educational Foundation initiated a relationship with Rebuilding Together, the nation’s largest all-volunteer home 7 rehabilitation organization. Lowe’s support preserved affordable housing in almost 40 communities. The retailer also has a separate Web site, titled “Lowe’s Creative Ideas,” dedicated to helping consumers tap into their own skills to work on their homes.

THE HOME DEPOT INC. Global Pulse Score: 71.49 This $77 billion home improvement retail giant doesn’t just have homeowners and building contractors on the mind: It also offers free How-To clinics for children ages 5-12, which shows children how to build certain products. The clinics also educate children on how to use tools and the 8 importance of tool safety. On its Web site, the retailer provides tips for homeowners on water and energy conservation to make their homes healthier and more eco-friendly. Home Depot suggests products to improve indoor air quality, such as air fi lters and latex paint products.

CVS CAREMARK CORP. Global Pulse Score: 71.14 This drugstore retail chain offers everything from cosmetics to prescription drugs to school supplies. The retailer’s community efforts focus on children: Its signature charitable giving program, titled “All Kids Can,” is a fi ve-year, $25 million initiative dedicated to supporting children with 9 disabilities. In May, the Woonsocket, R.I., company released its fi rst Corporate Social Responsibility report, which covers prescription safety, customer privacy, environmental management and the safety of its products, such as personal care items.

J.C. PENNEY CO. INC. Global Pulse Score: 69.92 The Plano, Tex.-based department store chain focuses on a diverse workforce. “We recognize the value that diverse perspectives bring to J.C. Penney,” Myron E. “Mike” Ullman 3rd, chairman and chief executive offi cer, stated on the company’s Web site. WWD reported at the end of June 10 that, despite the lackluster retail environment and consumers’ tight budgets, Ullman remains hopeful for back-to-school sales. “We feel good about our offers, good about our marketing and our pricing proposition…We’re well prepared. Most kids need new clothes for back-to-school,” he said.

KOHL’S CORP. Global Pulse Score: 69.31 This department store chain encourages its employees to give back to their communities. In 2007, almost 40,000 company employees volunteered more than 136,000 hours to support youth-serving nonprofi ts through efforts such as tutoring kids after school, building playgrounds and 11 participating in fund-raising runs and walks. In addition, employees have shown their commitment to their communities, “by rewarding young volunteers with over $1.5 million in scholarships and gift cards through the Kohl’s Kids Who Care Scholarship Program,” said the company.

BJ’S WHOLESALE CLUB INC. Global Pulse Score: 69.24 It’s all about the customer for this warehouse store chain, which operates more than 175 locations in 16 states in the eastern U.S. “BJ’s is dedicated to providing our members with prices signifi cantly lower than those found in supermarkets, supercenters, department stores, drug stores and 12 specialty retail stores,” said the company. One of BJ’s community initiatives is its Adopt-A-School program, which provides assistance to schools around the country with fund-raising efforts and the purchasing of items for curriculum enhancement (such as books). TOYS ‘R’ US PHOTO BY MIKE DERER/AP PHOTO; STAPLES BY PAUL SAKUMA/AP PHOTO SAKUMA/AP PAUL BY MIKE DERER/AP PHOTO; STAPLES US PHOTO BY ‘R’ TOYS SOURCE: NEW YORK-BASED REPUTATION INSTITUTE; THE ANNUAL SURVEY ANALYZES THE LARGEST CORPORATIONS WORLDWIDE BY REVENUE; RESPONDENTS WHO ANSWERED THAT THEY WERE FAMILIAR WITH EACH ORGANIZATION WERE THEN SURVEYED ON THEIR PERCEPTION OF EACH COMPANY’S REPUTATION ON KEY DRIVERS; 25 U.S.-BASED RETAILERS WERE INCLUDED IN THE UNIVERSE OF COMPANIES 12 WWD, THURSDAY, JULY 10, 2008 WWD.COM Carrefour Sales Rise 6.7% Marks and Spencer Shareholders By Robert Murphy ty. He did not offer a timetable. Approve Rose as Exec. Chairman Durán forecast that operat- PARIS — France’s Carrefour, the ing profi ts in the fi rst half would By Nina Jones weak economic climate for world’s second largest retailer grow 5 percent. Durán last the slide. after Wal-Mart Stores Inc., said month cut Carrefour’s full-year LONDON — Despite opposi- Rose said he doesn’t plan Wednesday that second-quarter guidance, citing deteriorating tion from some shareholders to take the retailer’s luxury- sales grew 6.7 percent at constant market conditions in France. — with 22 percent abstaining oriented food offering in a exchange rates, despite a drop in He said that the situation or voting against him — Marks discounted direction and its hypermarket sales at home. has “not worsened” in July and and Spencer Group plc chair- would continue to expand the Sales in the three months that activity linked to the sea- man Stuart Rose was elected largest British clothing retail- through June 30 advanced to sonal sales period “was starting executive chairman at the er. “M&S is not and never will 23.72 billion euros, or $37.08 bil- pretty correct.” British retailer’s annual meet- be a one-stop shop. We are lion, from 22.37 billion euros, or Sales in Europe outside of ing Wednesday. upping the game in terms of $30.16 billion, in same period France grew 3.7 percent, boosted Rose said he had endured innovation.” last year, below most analysts’ a fl urry of attacks, including Addressing shareholders’ expectations. Excluding new a description of him as “the complaints about the sharp openings and acquisitions, sales Being cautious doesn’t mean that we Robert Mugabe of retail.” fall in M&S’ share price in the in the quarter grew 2.2 percent. “ Critics argued that his ap- last year, Rose said, “We are Dollar fi gures have been con- are not ambitious. pointment to the position of equally as unhappy. It refl ects verted from the euro at average ” executive chairman, which the market’s confi dence in this exchange rates for the applica- — José Luis Durán, Carrefour combines the duties of chair- particular sector. There’s cur- ble periods. man and some of those of a rently very little interest in the Sales in the key French mar- He said Carrefour would by an acceleration of 8.3 percent in chief executive officer, vio- investment market in consum- ket, which generates half of accelerate promotional activ- sales in Spain. In Asia, sales grew lated corporate governance er-facing stock like retailers.” Carrefour’s sales, advanced only ity in its French hypermarkets 4.1 percent, while sales in Latin rules and concentrated too Rose acknowledged the 0.5 percent, hamstrung by con- while also speeding plans to America advanced 27.4 percent. In much power in one role. slump in like-for-like sales in sumer worries about the econ- transfer its Champion su- Eastern Europe, sales gained 20 Defending his move, Rose the fi rst quarter. “Consumers omy and high infl ation. Sales in permarkets to the Carrefour percent, with spectacular growth said, “M&S is an institution are saying that their purses French hypermarkets dropped Market brand in France. in Poland and Romania. that is bigger than any one are pressed, the cost of liv- 2.4 percent, Carrefour said. “Being cautious doesn’t mean Carrefour released the fig- individual, and that certainly ing is going up faster, they are José Luis Durán, Carrefour that we are not ambitious,” said ures after the market closed includes me,” adding that he feeling the squeeze and it will chief executive officer, told a Durán, who added that Carrefour here. Its stock closed up 2.41 believed the change “was the take longer to feed through,” conference call Wednesday that would also concentrate on build- percent to 34.45 euros, or $54.18, right thing to do.” he said. “Marks & Spencer is he was unhappy about the per- ing business in its growth mar- in trading on the Paris Bourse. The company said about 78 a bit like the smoke detector formance in France and that he kets in Eastern Europe, South The stock, which was trading percent of shareholders voted in your kitchen,” he added, would immediately implement America and China. above 50 euros, or $78.63, in in favor of Rose’s appoint- explaining the retailer was measures to try to stem the drop. He said Carrefour, whose early April, has come under ment, which was announced vulnerable to shifts in con- He underscored how dif- largest shareholder is LVMH pressure recently on poor con- in March, 4.9 percent voted sumer spending as it holds the fi cult the current climate had Moët Hennessy Louis Vuitton sumer spending in France. against it and 17.2 percent ab- largest clothing market share become. “We can’t count on the chief Bernard Arnault and “We are not happy about the stained. There had been pre- in the U.K. and serves 20 mil- environment, we need to at- Colony Capital, would proceed stock price,” Durán said. “There are dictions in the British press lion customers. tack,” Durán said. with plans to spin off its proper- opportunities in this environment.” that as many as 30 percent of However, company deputy the shareholders would either chairman David Michels said vote against Rose or abstain. during the meeting at Royal Many of the retailer’s Festival Hall that in a diffi cult smaller investors congratu- economy, “continuity is more JUNE 2008 lated Rose. important. We needed Stuart The vote came a week after to run this company, he has a Marks & Spencer’s shares job to fi nish and he can do it dropped 32.5 percent on the better than anyone else.” London Stock Exchange when Shareholders also passed the retailer said sales rose resolutions to elect Kate 1.3 percent in the fi rst quar- Bostock, executive director ter, but like-for-like sales fell of clothing, to the board, and sharply across all key cat- to reelect Stephen Sharp, ex- egories. Rose blamed falling ecutive director of marketing TRINA TURK, A DISTINCTIVE DESIGNER, WHOLESALER, consumer confidence and a to the board. AND RETAILER OF WOMEN’S CONTEMPORARY APPAREL AND ACCESSORIES

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GETTING BACK IN The tone of the copy (stories and cover lines STYLE: High-rise include “What Price Beauty?” and “Style Rules We condominiums Love to Break”) signal an updated, if somewhat MEMO PAD in Manhattan cheekier In Style. “The redesign has been successful have been in reinforcing the luxury aspect of In Style, at the erected in less time than it took In Style magazine same time bringing practical service to the reader,” to formulate a redesign. For the last said Martha Nelson, who oversees In Style year, the top brass at Time Inc. sought as editor of The People Group. Spreads to reinvigorate its fashion and celebrity include enlarged pictures of clothes, magazine with additions to the top of products and celebrities big enough for the masthead — editor at large Ariel any farsighted reader to see the details. Foxman, deputy managing editor Eilidh And those fashion credits should be MacAskill, recruited from the U.K.’s rolling right along: New front of book and Happy, and creative director Rina Stone, shopping sections dedicate more pages who joined from People — and changes to products, and its beauty pages have to its covers and editorial sections been expanded to include more goods. along the way. But the August issue will Another sign that In Style wants to bring about a noticeable new look for position itself among fashion’s biggest the 14-year-old title, which has faced trendsetters — the magazine and two intense pressure from both fashion and of its editors will be featured this fall celebrity competitors. in WB’s “Gossip Girl,” the show that’s The new look is more modern with touted as the next “Sex and the City” a bigger focus on fashion and beauty, in terms of its impact on fashion and demonstrated through bigger pictures, trends. The script hasn’t been written bolder headlines, and new sections yet, so there’s no word on whether it’ll including “What’s Hot Now” and “Shop be Hal or Cynthia or whomever dishing It.” And there’s a go-girl editorial tone with Serena, Blair and the “Girls” about with plenty of exclamation points, ellipses the mercurial world of fashion. and liberal use of the word “love.” Ingredients integral to the DNA “Our marketplace has become very of the magazine — red-carpet crowded both on the fashion front, with photographs, party pages and celebrities everyone using celebrity and treating at home — have not been discarded, service in the way that had become very but repackaged. Photos and red-carpet familiar for In Style, and on the weekly candids include more editor and front, where the celebrity magazines Pages from the redesigned celebrity commentary. had encroached,” said In Style August issue of In Style. The changes come at a point of managing editor Charla Lawhon. momentum for the magazine, which “When In Style launched, what people knew will report to the Audit Bureau of Circulations an about celebrity was more limited,” added Lynette increase in circulation for the fi rst half of 2008, a Harrison Brubaker, group publisher. “Now everyone feat few magazines can claim as of late. Single copy knows everything about celebrity, so we have to sales increased 4 percent, to 752,000 per month keep more relevant. And it’s not enough to say while total paid circulation increased 2 percent to celebrities are the only stylemakers because there’s 1.82 million. Comparatively, In Style moved 865,000 20 people around them in an entourage helping copies a month on newsstands in 2005 and had a them make choices.” Thus, the redesign plays paid circulation of 1.79 million. up fashion and includes more insights from the In Style is also launching an edition in China, entourage in the know. with Ziyi Zhang on the cover. To accompany staffers like fashion directors Hal Advertising, however, is on the decline, as is Rubenstein and Cynthia Weber-Cleary, In Style poached business within most of the magazine industry. editors from the competition, including news editor Through August In Style has lost 202 pages, or 11 Natasha Wolff and senior design editor Suzanne Karotkin percent, of advertising. Its European fashion and (formerly of Harper’s Bazaar), and senior beauty editor accessories advertising is still strong, but fi nancial Patricia Alfonso Tortolani (from Allure). The magazine services, pharmaceutical and fragrance have scaled also recruited Barneys New York creative director back. September also will fi nish smaller than last year, Simon Doonan and stylist Isabel Dupré to become according to estimates. But at least one advertiser contributors. Doonan pens a monthly column, “Where believed In Style’s new look, especially the approach Style Starts”; Dupré styled the redesigned cover shoot towards showcasing product, might be more appealing with Rihanna. Lawhon hopes Dupré will be a “frequent to advertisers. “It’s very modern, which I think In Style contributor” to the magazine. Profi les of Rachel Zoe, needed,” said Mimma Viglezio, Gucci executive vice Isaac Mizrahi, and Rachel Bilson’s new clothing line for president, global communications. “The whole thing DKNY Jeans also appear in the issue. looked more appealing.” — Stephanie D. Smith Former Marionnaud CEO Found Guilty PARIS — Marcel Frydman, former chief executive officer of Marionnaud Parfumeries, was found Marcel Frydman guilty on Wednesday of having trumped up the company’s accounts in 2002 and 2003. The Paris criminal court convicted him with an 18-month suspended prison sentence and a fi ne of 300,000 euros, or $472,124 at current exchange. Others were implicated in the case, as well. His son, Gérald Frydman, formerly Marionnaud’s vice president and fi nancial director, was handed down a suspended prison sentence of eight months and a 100,000 euros, or $157,379, fi ne. Laurent Ferré, Marionnaud’s former fi nancial controller, was given a four-month suspended prison sentence, a court spokeswoman confi rmed. The three 28 euros and 6,000 euros, or $44.08 and $9,447.27, men were plus 250 euros, or $393.57, in legal fees. put on trial Tuesday’s conviction came less than one year BEAUTY BEAT after prelim- after Marcel Frydman was fi ned for other offenses. inary pro- In October 2007, he was sentenced by the criminal ceedings were begun in November 2005 by Paris’ court to pay 15,000 euros, or $23,614, for having public prosecutor’s offi ce. Those, in turn, were sold at least 3,560 tester bottles destined for free, kicked off after proceedings were initiated by the in-store fragrance sampling. He was also made Autorité des Marchés Financiers, France’s stock to pay thousands of euros worth of damages to market watchdog, concerning irregularities in companies including LVMH Moët Hennessy Louis Marionnaud’s fi nancial disclosures between 2002 Vuitton, PPR and Beauté Prestige International. and 2004. In July 2007, Frydman was fi ned 1 million As part of the sentencing Tuesday, the crimi- euros, or $1.57 million, by the AMF for having fal- nal court required both Frydmans to pay damages sifi ed Marionnaud’s accounts. and interest to civilians, the spokeswoman said. Frydman and his son left the perfumery chain According to reports, they must pay 32 former in September 2005, seven months after selling Marionnaud shareholders 2 euros, or $3.15, per Marionnaud to A.S. Watson. share. The sums reportedly owed fall between — Jennifer Weil 14 WWD, THURSDAY, JULY 10, 2008 WWD.COM Gucci, Giannini Pay Homage to Rome

By Luisa Zargani and Giannini acknowledged the importance of the Rome Models on store in the expansion of the brand outside Italy. It is on the runway. ROME — Gucci creative director Frida Giannini said the luxury shopping street Via Condotti, near the Spanish she was in a holiday mood — as in “Roman Holiday.” Steps, which were reproduced in a black-and-white back- Organizing the 70th anniversary celebration of drop for the fashion show. The unit was Gucci’s second Gucci’s store here wasn’t quite a vacation. But Rome is store after Florence, and opened in September 1938. where Giannini grew up and Villa Aurelia, on the city’s “It began our globalization and the love affair Janiculum Hill, which the designer chose for Gucci’s between Cinecittà, Hollywood movie stars and the cruise fashion show, dinner and party on Tuesday night, Americans enjoying the Dolce Vita here,” Lee said. is where she had her wedding reception three years ago. Indeed, many of Italy’s top actors fl ocked to Villa “We did not want to sacrifi ce Rome for New York,” Aurelia, from Maria Grazia Cucinotta to Francesca Neri, Giannini said before the show. The designer felt the marking the connection with the local fi lm industry, in opening of Gucci’s Fifth Avenue boutique in February addition to socialites such as the Brivio Sforzas, the took some attention from the restoration and reopening Viscontis and Arrivabenes and the Elkann clan. of the historic store in Rome, which was also unveiled “Frida has a vision, she makes things simple, which that month. So Giannini thought the summer period is an asset in this complicated world,” said Fiat heir would fi t well with an event in Rome. Lapo Elkann. “She is good for Gucci, which is owned “It’s such an outdoorsy city,” added the designer, who by the French, but whose DNA is Italian.” Claire Danes, decided to hold an encore of the 2009 cruise show, present- the face of Gucci’s jewelry ad campaign, and her boy- ed in New York last month, for the occasion. In homage to friend Hugh Dancy, also turned out. the city, Giannini designed fi ve additional fl owing dresses Retailer Rosi Biffi complimented Giannini’s “very exclusively for the show that will be available only at the contemporary and easy style. Just look at what she does Rome store. The designer revisited Gucci’s iconic fl ora with the evening gowns, she is young and designs for motif with shells and other marine patterns. “We wanted young customers.” to give the right relevance to this location,” she said. In a wink to such friends and clientele, Giannini Robert Polet, chief executive offi cer of Gucci Group, personally chose the soundtrack for the evening, from was in a celebratory mood as he entered the lush park Donna Summer to Mina, and invited the British band surrounding the 17th-century villa. “I have great memo- Goldfrapp to perform after the dinner in the villa’s park, PHOTOS BY GIOVANNI GIANNONI GIOVANNI PHOTOS BY

Mark Lee Robert and Frida “We can’t control external factors — and the dollar Caroline Polet Giannini exchange is a heavy thing to manage — but we can con- trol internal execution,” Lee said. “Creativity, quality, service and presentation are becoming increasingly more important and we do the very best we can without allowing macro factors to change our strategy.” Along these lines, Lee said Gucci continues its re- tail expansion around the world, with London’s Sloane Street to reopen next year and a fi rst store in Seattle expected to open by yearend. While investing in estab- lished markets such as Europe and the U.S., Gucci is also venturing into new ones. Boutiques in Budapest, Hungary, and São Paulo, Brazil, will open in September and November, respectively. “A middle class is fi nally emerging in Brazil,” Lee said of that market’s vast po- tential. “The country is politically stable and is rich in natural resources.” Gucci counts 20 boutiques in China and plans to open four more by the end of the year. Lee said Gucci sold out ries of [Giannini’s] wedding, too,” Polet said, as he went with about 300 seated guests. Roughly three times as its Olympics-themed products and is “working out con- to greet the designer’s family. many later turned up for the concert. The fashion show tingency plans to restock stores” as quickly as possible Mark Lee, ceo of Gucci, said Rome was “key” to the was Webcast live on Gucci’s site. in that market. brand’s business and one of the label’s top fi ve stores, Lee said cruise was “one of Gucci’s biggest collections,” As for the fast-growing Russian market, Lee said cus- along with Milan, Florence, Hong Kong and New York. in terms of business. Although Lee indicated the company tomers there are opting for “expensive furs and leath- “The store crystallizes [Giannini’s] work, how she mod- is in a blackout period since its second-quarter fi gures are ers,” and are helping to balance the shrinking number ernizes the brand in a luxurious and fashion-forward way, due to be reported on July 24, he said he remained “confi - of Japanese and American tourists in Europe. “The 1.57 while deeply respecting its iconic roots,” he said. Lee dent and optimistic” about the brand’s performance. euro/dollar exchange rate is dramatic,” he said.

TOPSHOP’S NEW JEANS: Denim a private Nikki Beach pool party in Saint-Tropez on Sunday. Hosted is going upscale at Topshop. In by Lady Victoria Hervey, the event is to fete the launch of Ne-Yo’s August, the retailer will launch a new album, “Year of the Gentlemen,” due for release Aug. 5. Fashion Scoops premium denim area at its Oxford Circus fl agship in London. The JUST FOR LAUGHS: Italian comedy met high fashion at the SOUND OF MUSIC: Carla Bruni-Sarkozy may make space, housed within Topshop’s vast German embassy in Paris serenading France’s president a private affair, denim section in the store, will carry last week when the but VIP members of the fi rst lady’s Web site brands including Dittos, Radcliffe porcelain manufacturer have been granted a limited two-hour preview Denim, Sass & Bide, J Brand and Nymphenburg unveiled 25 of her third album, due out Friday. Entitled My Lovely Jean. In addition, the limited edition sets of 16 “Comme si de rien n’était” (“As if nothing retailer will also launch limited fi gurines based on the original had happened”), tracks include “You Belong edition denim capsule collections commedia dell’arte fi gurines to Me” and “Notre Grand Amour est Mort” designed with brands including Sass created by Franz Anton (“Our Big Love is Dead”). The album’s & Bide, Dittos and J Brand during Bustelli in the mid- cover, shot by Jean-Baptiste Mondino, shows the fall season. And during London 1700s. The company a pensive Bruni-Sarkozy strolling along a Fashion Week, Topshop will open invited 16 designers to lakeside wearing a jacket and fl ared jeans. a pop-up denim clinic at its Oxford give these dolls a dose Circus store, with designers on hand of modern style. At PARTY TRAIN: A typically eclectic group to advise customers about denim a cost of 160,000 of fi lmgoers hit the Cinema Society fi ts and styles. euros, or about and Condé Nast Traveler screening of $252,000 at “Transsiberian” Tuesday night. Steve TAM, VIRTUALLY: Vivienne Tam is the current exchange, Buscemi, Ann Dexter Jones, Judd Hirsch latest designer to join Stardoll, the you too can be the and Russell Simmons viewed the thriller, virtual world for tweens with more proud owner of a about one couple’s disastrous journey than 18 million members. This Denim at Viktor & Rolf Columbine, a on the legendary train that travels from week, Tam will chat live with Stardoll Topshop. Christian Lacroix Julia and Beijing to St. Petersburg, before heading members and judge a contest of Gareth Pugh’s Capitano to the yard of the Soho Grand Hotel for virtual fashions that members Spavento, among others. some food and drink. There, the fi lm’s star, created with the site’s design Also, photographer Florian Emily Mortimer, held court with director Brad software. A Vivienne Tam boutique will debut later this year, Böhm took portraits Anderson and regaled guests with tales from where girls can purchase virtual versions of Tam’s designs for of each designer the two-month-long shoot with co-stars Woody their avatars to wear. Other designers include DKNY and mary- for a book of Harrelson, Kate Mara and Sir Ben Kingsley kateandashley. Venture-backed Stardoll is based in Stockholm. prints due out Gareth in Lithuania. “We went to the one Indian in September. It Pugh’s

PHOTO BY BILLY FARRELL/PMC BILLY PHOTO BY restaurant there with Ben and it was like SPLASHING AROUND: It’s never too early for summer for Dsquared’s is also a collector’s Capitano Spavento. Emily Mortimer we walked in with Gandhi,” Mortimer said Dean and Dan Caten. The Italian design duo is expected to join the item that will be in Chloé. laughing. “Of course he played it up.” likes of Barron Hilton, Paris’ little brother, and actor James Franco at signed by each designer. Save The Date WWD | DNR CEO Summit October 27-28, 2008 | St. Regis Hotel, NYC

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WWD_APPAREL_071008.indd 1 7/9/08 11:09:01 AM 16 WWD, THURSDAY, JULY 10, 2008 WWD.COM Steve & Barry’s Files for Bankruptcy

Continued from page one fi nancing ensued and apparently failed, despite talks Steve & Barry’s is fi ling for Chapter 11. with potential buyers and investors, among them Sears Holdings Corp. Even if the company can emerge from bankruptcy in some fashion, it will likely bear little resemblance to the way the fi rm has operated since it was founded 23 years ago. In their fi rst public statement about the chain’s dif- fi culties, the founders and co-chief executive offi cers, Steve Shore and Barry Prevor, said, “High costs of ma- terials and fuel prices have increased our cost of goods and cost of operating. At the same time, our customers are not in a position to pay higher prices, impacting our operating margins. “Our customers are feeling the pain of high food and gas prices and declining home values, and many of them are being forced to shop closer to their homes and cut back on discretionary purchases,” their state- ment continued. Yet, even with these challenges, the pair said their 276 stores in 39 states had registered a 70 percent in- crease in total sales this year through the end of May, along with a 15 percent increase in same-store sales and a 25 percent increase in average store sales. Annual sales are believed to be in excess of $1 bil- lion, much of that attributable to the retailer’s various celebrity licenses. In its statement, the company said its “exclusive branded lines of merchandise created with high-profi le entertainers and athletes have performed exceptionally well.” The company disclosed nothing about its plans to close stores, but did say that it had reduced corporate and fi eld staff positions by 172. It’s obtained fi nancing from secured lenders to use cash collateral for operat- ing needs. Some sources saw the store’s emergence from a bankruptcy, either as an acquisition or a scaled-down reorganization, as a long shot. Stevan Buxbaum, executive vice president of Buxbaum Group, an appraisal and liquidation fi rm, took a dim view: “Steve & Barry’s is most likely a liquidation. While there’s talk of Sears looking at the company and some of its assets, that’s not going to happen. The rea- Among its top trade creditors were a number of land- Shore and Prevor added that the company has in- son is there’s no proof that Steve & Barry’s ever had a lords, including Simon Property Group of Indianapolis vested more in capital expenditures in the last year, working model. The margins were too low. This was just which, with $2.2 million owed on leases, was the fi fth- but has yet to have the opportunity to “fully realize” the a momentum play. The numbers never worked because largest unsecured creditor. Also making the top 30 list planned returns from those investments. there was insuffi cient margin to sustain the business.” of unsecured creditors in the leasehold category were In addition, many suppliers had cut off access to ser- According to Buxbaum, the retailer kept opening CBL & Associates of Chattanooga, Tenn., $1.2 million; vice and supplies, and money the store expected to get stores to sustain its high growth rate, and landlords General Growth Management Inc. of Chicago, $1.2 mil- from mall operators in some cases hasn’t materialized. offered advantageous lease terms to avoid the risk of lion, and Westfi eld Corp. Inc. of Los Angeles, $812,030. “Landlords have stopped remitting contractually Most of Steve & Barry’s better- owed payments for construction and store opening work known fashion labels — Bitten by performed by Steve & Barry’s,” the co-ceo’s said. “As a Steve Shore and Barry Prevor Sarah Jessica Parker, Dear by Amanda result of all of this, our loans have gone into default, and Bynes and Eleven by Venus Williams, we have had no alternative but to fi le Chapter 11 to en- as well as a group of TV-related brands able continued operations.” from CBS Consumer Products — are Expressing “grief and disappointment,” the two believed to be licensed, but licens- also said that they had “been through 23 years of eco- ing obligations don’t appear to have nomic cycles, but we never thought it would be possible fi gured in the cash crunch. However, for things to change so quickly and dramatically. We because these labels aren’t owned by brought on the best advisers and experts in the industry, [We’ve] been through 23 years of economic cycles, but we“ never thought it would be possible for things to change so quickly and dramatically. ” — Steve Shore and Barry Prevor

the company, there’s no guarantee that but we were not able to fi nd a solution without fi ling for they would be included in a sale. Chapter 11 protection.” Of particular popularity among Court papers said the company hired Weil, Gotshal & consumers has been Bitten by Sarah Manges as its bankruptcy counsel; Conway, Del Genio, Jessica Parker, launched in June 2007. Gries & Co. as fi nancial adviser, and Goldman Sachs Sources familiar with the Bitten label Group Inc. as investment banker. say it is owned by Parker. Requesting For now, all its stores will remain open with busi- anonymity, an attorney familiar with ness operations functioning normally. The company’s the license said the line could be trans- gift cards and store credits continue to be honored, ferred to another licensee, a possibility and its return policies remain in place. Steve & Barry’s empty sites. Buxbaum isn’t optimistic about the like- in the bankruptcy, but would require Parker’s approval. also said suppliers will be paid under normal terms for lihood of new tenants for any vacated sites because Other sources with knowledge of the Bitten opera- goods and services provided after the July 9 fi ling date. “there is no growth at retail.” tions said Steve & Barry’s is current in its royalty pay- At last year’s WWD/DNR CEO Summit, Andy Todd, The company has been criticized for lack of transpar- ments to Parker under the licensing agreement. president of the company, quoted basketball star ency during its recent swoon and didn’t state the size of According to bankruptcy court papers, the largest un- Stephon Marbury as being incredulous when he saw its losses. Neither was that information available in its secured creditor is Zheng Yong in Nhlangano, Kingdom Steve & Barry’s $10 basketball shorts and $12 jerseys, Chapter 11 petition because Steve & Barry’s hasn’t yet of Swaziland, for $3.9 million. Other top trade credi- prompting him to develop the Starbury Collection of in- fi led a schedule of assets and liabilities. The petition did tors include: Texport Syndicate in Andheri, Mumbai, expensive basketball sneakers and apparel in tandem state that assets were between $500 million and $1 bil- $3.3 million; Yixing City in Shanghai, $2.5 million, and with the stores. lion, with a similar range for its liabilities. The petition Gildan Activewear in Quebec, $2.5 million. “How do you do that?” the athlete asked about the also said that the company expects there will be some For now, the retailer is exploring options regarding low prices. funds available to pay unsecured creditors, but gave no the sale of the company or selected assets to repay its The market, like the athlete, is still waiting for an indication of what the potential payout might be. outstanding debt. answer. PRIME COMMERCIAL SPACES POSITION YOUR COMPANY AS A LEADER IN THE COMMERCIAL REAL ESTATE INDUSTRY To place an ad in Prime Commercial Spaces, call Theresa Mazza at 212.630.4921

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Call Eric 732-531-9734 Email resumes to: [email protected] [email protected] / 212-869-2236 [email protected] E-Mail: [email protected] WWD, THURSDAY, JULY 10, 2008 19 WWD.COM Retail Shares Beaten Down as Stock Market Searches for Bottom Benetton Confi rms etail stocks were battered Wednesday when stock markets tum- Guidance for 2008 Rbled amid the latest round of fears about the housing slump and troubled mortgage lenders. MILAN — Benetton Group Among those feeling the pain were stores that disclosed their SpA said Wednesday that June comparable-store sales ahead of the pack. Comp-store sales for preliminary estimates of Chico’s FAS Inc. fell 12.9 percent for June, sending the company’s first-half revenues indicated stock down 5.4 percent to $5.03. Despite a 6 percent rise in comps growth of around 5 percent at from June 2007 to June 2008, Caché Inc. shares dropped 8.3 percent constant exchange and con- to $11.63 on word that it had lowered its third-quarter guidance. Even firmed its guidance for 2008. shares of Buckle Inc., which announced a same-store sales surge of The six-month result ac- 28.9 percent, remained relatively fl at, down 0.5 percent to $46.47. counts for the new delivery Teen retailers were generally among the hardest-hit. Zumiez calendar for collections and Inc. slumped 6.6 percent to $17.10, Abercrombie & Fitch Co. fell 5.8 a temporary delay in the percent to $57.18, American Eagle Outfi tters Inc. slid 4.8 percent to shipment and invoicing in $12.99, Pacifi c Sunwear of California Inc. dropped 4.4 percent to the second quarter of this $8.28, and Aéropostale Inc. diminished 3.9 percent to $31.96. year, Benetton said.

Overall, the bear market gained momentum as the Standard PHOTO ABRAMS/AP HENNY RAY PHOTO BY The company gave no & Poor’s Retail Index fell 3.3 percent to 34.67. The Dow Jones The Standard & Poor’s Retail Index fell 3.3 percent to 34.67 on Wednesday. other details. Industrial Average sank 236.77 points, down 2.1 percent, to 11,147.44, In the fi rst half of 2007, the while the S&P 500 dropped 2.3 percent to 1,244.68. utive offi cer, Dorrit Bern. The company closed at $4.84, up 3 percent. Italian clothing retailer re- In the department store sector, J.C. Penney Co. Inc. dove 5.7 per- Vendors also suffered. Coach Inc. dropped 6.9 percent to $26.80, Liz ported consolidated revenues cent to $35.67, Sears Holdings Corp. dropped 4.6 percent to $72.54, Claiborne Inc. sagged 5.5 percent to $12.67 and Lululemon Athletica of 990 million euros, or $1.3 Macy’s Inc. declined 4.4 percent to $18.04, Kohl’s Corp. fell 5.1 per- Inc. tumbled 6.3 percent to $25.72. Maidenform Brands Inc., which an- billion at average exchange. cent to $42.18 and Nordstrom Inc. dipped 4 percent to $31.24. nounced the appointment of Maurice S. Reznik as chief executive of- Benetton said in Wal-Mart Stores Inc. fell 2.4 percent to $57.67, while rival Target fi cer, fell 4.1 percent to $12.37. Phillips-Van Heusen Corp. dropped 3.8 February and May that it Corp. was off 2.8 percent to $47.32. percent to $35.44 and VF Corp. was off 2.1 percent to $73.69. Warnaco expected full-year sales The Talbots Inc. registered an 8.4 percent decline to $10.98. Group Inc. emerged with a 1 percent decline to close at $42.79. growth to slow to between AnnTaylor Stores Corp. fell 3.6 percent to $23.22. Charming Shoppes After the bell Wednesday, Hot Topic Inc. reported a 0.3 percent drop 6 and 8 percent on a like- Inc. was one of the few retailers to beat the trend, as investors seemed in June same-store sales and Zumiez said its June comps fell 3.4 percent. for-like basis as a result of to approve the resignation of the plus-size apparel retailer’s chief exec- — Matthew Lynch the diffi cult trading climate. Net profi ts and earnings be- fore interest, taxes, depreci- ation and amortization are forecast to increase more Calif. Polo Employees Granted Class-Action Status in Compensation Suit than 7 percent. In May, the group inked U.S. district court judge in San Francisco As part of the ruling, both parties were ployees were discouraged or prevented a deal with Sears Mexico ATuesday granted class-action status to a ordered to enter mediation within the next from taking breaks and were subject to bag as part of its drive to boost compensation lawsuit brought by former 45 days. checks for stolen merchandise before leav- its business in emerging employees of stores operated by Polo Ralph A representative for Polo Ralph Lauren ing the stores, but after they had clocked markets. Benetton sees sig- Lauren Corp. in California, potentially al- said the company does not comment on out. The class certifi cation includes any nifi cant potential in India, lowing an estimated 5,300 other workers to pending litigation. cashier or sales associate injured by an China, the former Soviet join the case. Judge Susan Ilston granted the class-action alleged violation from May 30, 2002, to the Union, Turkey and Latin The lawsuit accuses the company of deny- status after hearing testimony from the four present. According to court documents, America and expects to ing employees proper payment for time spent former employees bringing the suit and dec- Polo Ralph Lauren operates 28 stores in triple sales there to 300 mil- in its stores, failing to provide rest breaks, larations fi led by other class members, as well the state. lion euros, or $471 million improperly classifying all salespeople as as competing declarations in defense of Polo In 2007, the company settled a suit that al- at current exchange, over commission-based earners exempt from Ralph Lauren fi led by current employees. leged its dress code policies violated several the next three years. overtime and improperly using an arrears According to allegations in the com- California laws. — Andrew Roberts program to reduce commissions earnings. plaint, originally fi led in May 2007, em- — M.L.

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Los Angeles Based Public Relations Manager GUESS?, Inc. is seeking an experienced Public Relations Manager for their Los Angeles World Headquarters. As PR Manager you will be responsible for preparing corporate press releases and pitching related stories to relevant media throughout North America. You will manage PR for larger store openings and image events, manage and style celebrity wardrobe requests, as well as seek new PR opportuni- ties. You will work closely with the store network on all film and television requests, as well as liaison with the NY PR team on editorial stories as necessary.

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