City Slickers NEW YORK — Location, Location, Location

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City Slickers NEW YORK — Location, Location, Location KNIGHT PASSES NIKE BATON/2 RICHEMONT NET UP 158%/2 Women’sWWD Wear Daily • The Retailers’ DailyFRIDAY Newspaper • November 19, 2004 • $2.00 Beauty City Slickers NEW YORK — Location, location, location. It’s obvious that the real estate market isn’t the only industry to recognize the truth of this credo, as Donna Karan Cosmetics prepares to launch its New York-themed Be Delicious Men, while Lancaster gears up for Miami Glow, a new addition to its Jennifer Lopez franchise. Be Delicious Men is out in March and could do $20 million at retail in its first year on counter, while Miami Glow, out in February, is said to be looking for sales of $15 million to $20 million. For more, see pages 6 and 7. Gap Looking Abroad, Will Set Up Banana Republics in Japan By Meredith Derby Gap said Thursday it will open three end goods, as well as Banana NEW YORK — Gap Inc. sees the future Banana Republic stores in Japan Republic’s recent relative success in of Banana Republic in the Land of next year. the U.S., the division’s foray into the the Rising Sun. Combined with the fast-growing Far East could be a good thing for Amid somewhat disappointing Asian apparel market, where Gap, whose international segment news of flat third-quarter earnings, consumers are hungry for higher- See Gap, Page 12 PHOTO BY JOHN AQUINO; STYLED BY BRYN KENNY JOHN AQUINO; STYLED BY PHOTO BY 2 WWD, FRIDAY, NOVEMBER 19, 2004 WWDFRIDAY Knight Move: New Nike CEO Named Beauty By Melanie Kletter in several positions, including general manager of S.C. Johnson Spain and Iberia, vice president and GENERAL NEW YORK — Nike Inc. co-founder Philip Knight regional director of consumer products in Latin Amid somewhat disappointing news of flat third-quarter earnings, Gap said is stepping down as president and chief executive America and vice president of the U.S. Home Care 1 Thursday it will open three Banana Republic stores in Japan next year. officer of the $12 billion athletic shoe and apparel business. The company is based in Racine, Wis. Philip Knight is stepping down as president and ceo of Nike, but will remain company he made into a global brand. Raised in Colombia in South America, Perez 2 chairman, to be replaced by William D. Perez, ceo of S.C. Johnson & Son. He will be succeeded by William D. Perez, who is not a total stranger to the fashion business. He has been president and ceo of S.C. Johnson & was a board member at May Department Stores Richemont, which a year ago saw sales and profits plummet from a variety Son, the maker of consumer products such as until May. He is also on the board of the Kellogg 2 of factors, scored a 158 percent profits spike in its first half. Windex, Ziploc bags and Glad air freshener. The Co., the cereal maker. SUZY: Nicole Kidman said she would like to “produce” another child, with appointment is effective Dec. 28. Perez indicated in a written 4 somebody…Posh Spice does denim…There is nothing like a dame. Knight, 66, will remain as statement that he would retain Nike’s chairman and is likely to the company’s direction. “I was BEAUTY: The Lancaster Group hopes to invigorate its Jennifer Lopez still be a presence in the compa- drawn to this company because 6 fragrance brand in February with the launch of Miami Glow. ny. The move, though not a sur- the Nike brand perpetually stays Donna Karan Cosmetics, a division of Estée Lauder Cos., plans to launch a prise to analysts, is another sign current, making it one of the best men’s counterpart to its just-launched Be Delicious scent this spring. that he is loosening his control of managed on the globe,’’ he said. 7 Nike, which he founded with for- “And I’m a strong believer in ‘Just mer University of Oregon track Do It,’” which is Nike’s slogan. Classified Advertisements........................................................................15 coach Bill Bowerman in 1972. Perez is an avid runner and To e-mail reporters and editors at WWD, the address is “I think this is a natural step has participated in 11 marathons, [email protected], using the individual’s name. and something that has been in Nike said. In addition to being WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 the works for a while,” said ana- president and ceo, he will be a di- FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 188, NO. 108. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional lyst Matt Powell of Princeton rector on Nike’s executive board. issue in January, May, June and November; two additional issues in February, April, September, October and December; and three Retail Analysis. “He is stepping Knight, who started by selling additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 back at a time when Nike is at track shoes out of the trunk of his West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; Philip Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, the top of its game; it’s a good Knight car, has overseen and guided Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior time for this kind of transition.” Nike’s growth into the world’s Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at Nike has reported strong earn- largest athletic company, selling additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration ings and sales gains this year. In the quarter ending a broad range of categories and hard goods. He No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. Aug. 31, earnings surged 25 percent to $328.1 mil- was a pioneer in using athletes such as Michael POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR lion, as revenues rose 17.7 percent to $3.56 billion. Jordan to promote Nike products. DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is “Nike has enjoyed tremendous success as we In recent years, Nike has branched into new required for change of address. Please give both new and old address as printed on most recent label. First copy of new have grown to become a $12 billion global compa- arenas with the acquisitions of Converse, Cole subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, ny,” Knight said in a written statement. “As I’ve said Haan and Hurley. Earlier this year, Nike acquired please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild many times over the past three years, Nike’s cur- Starter, a mass athletic brand, heralding a new magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully rent management team, led by brand presidents distribution strategy. screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. Charlie Denson and Mark Parker, is the strongest The company has come under fire for work- WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED it’s ever been. With Bill, we become even stronger.” ing conditions at its overseas factories, but has MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND Knight was not available for further comment. worked to improve its standards in recent years. TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED After Nike’s most recent earnings, Lehman While Nike is best known for footwear, apparel TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Brothers analyst Robert Drbul wrote: “We strong- has become a fast-growing category, and U.S. appar- ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. ly believe Nike has never been better managed el sales were $391.3 million in the recent quarter. from a strategic and financial perspective.” Nike employs 24,000 people in about 200 countries. Powell said Perez, 57, was a good choice to Knight’s total 2003 compensation was $3.7 mil- lead Nike because he has broad international lion, of which $2.3 million was in bonus pay. He Quote of the Week experience, and Nike has been aggressively also owns 12 percent of the company’s shares.
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