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$2.99 VOLUME 74, NUMBER 15 APRIL 13–19, 2018 THE VOICE OF THE FOR 73 YEARS AST Takes Over Where Left Off By Deborah Belgum Executive Editor When American Apparel went bankrupt and laid off some 3,500 employees last year, another company was waiting in the wings to take over the title of the largest vertically inte- grated T- venture in the . While not as large as American Apparel, AST Sportswear likes to boast that it does everything “from dirt to shirt” when making T- and its other array of products. For several years, AST Sportswear concentrated doing its cutting and in-house, but it stepped into American Apparel’s when it took over American Apparel’s knitting facility in Car- son, Calif., and its and finishing facility in Hawthorne, Calif. By adding those two facilities, AST Sportswear—a giant of a company in Orange County, Calif.—inherited the title of the largest vertically integrated T-shirt maker in the United States. But that, perhaps, is where the similarities stop. ➥ AST Sportswear page 8 Rodeo Drive Keeps Its Luster With Recent Deal By Andrew Asch Retail Editor Vacancy is common for most retail streets under attack from e-commerce competitors, but not Rodeo Drive. There is hardly a vacant space on the hoity-toity retail shopping district in Beverly Hills, Calif. When real-estate news is made on the street, it makes a splash. That was seen when the French luxury LVMH Moet Hennessy Louis Vuitton Inc. paid $110 mil- lion for a two-story white at 456 N. Rodeo Drive, next to a Ralph Lauren flagship. That puts the price for the 6,200-square-foot building at $17,750 a square foot. The Paris-headquartered entity is the parent company of Designer Debut some very high-end brands, including Louis Vuitton, Given- chy, Christian Dior, Céline, Fendi and Marc Jacobs. It al- ready runs boutiques for six of its brands on the street, but the company hasn’t disclosed its plans for its recent acqusition, Graduating students from the Institute of ➥ Rodeo Drive page 9 & Merchandising in Los Angeles displayed their design prowess in a runway show held at Barker Hangar in INSIDE: Santa Monica, Calif., as guests celebrated the achievements Where fashion gets down to SM of the new designers. For more from the show, see page 6.

3 4 Capsule trade show sold ... p. 2 Unifi acquires National ... p. 2 March retail ... p. 2 Levi Strauss earnings ... p. 2 Gen Z survey ... p. 3

VOLKER CORELL www.apparelnews.net

01,8-9.cover.indd 1 4/12/18 5:18 PM NEWS Levi Strauss Shows Strong First-Quarter Revenue Gains Levi Strauss & Co., that venerable ever, the denim brand had a net loss of $19 mil- Bergh, the company’s president and chief ex- Bergh said the company has been on a tra- brand founded in San Francisco in 1853, has lion due to a $136-million provisional noncash ecutive. jectory to offer more-diverse products, expand been on a revenue roll recently as it diversifies tax change due to the recently enacted federal The company predicts that 2018 revenues more into international markets and invest its products and targets the international market tax cut. But adjusted net income nearly dou- will grow by 6 percent to 8 percent, with a trade more in and direct-to-consumer for growth. bled in the first quarter to $117 million com- war and tariffs putting a damper on a more op- expansion. Offering women more tops to buy The company reported on April 10 that its pared with last year. timistic outlook. “Trade and tariffs could have with graphic elements has been a winning first-quarter revenues jumped 22 percent from “We had a great start to the year, and our significant short-term impacts,” Bergh said. strategy. the same period last year to $1.3 billion. How- strategies are clearly working,” said Chip The Levi’s brand saw 17 percent sales Revenues in the Americas—which include growth in all categories while the Dockers the United States and Latin America—were up brand declined slightly. For the lower-priced 14 percent to $657 million. “This is the best Signature and Denizen labels, revenues were quarter the Americas region has seen in recent Liberty Acquires Capsule Trade Show up 30 percent in the first quarter as women’s history,” said Harmit Singh, the company’s Liberty Fashion & Lifestyle Fairs an- that select Capsule staff will join Liberty. sales overtook men’s. chief financial officer. nounced it acquired the Capsule trade show For the time being, the entities will hold their The Levi’s women’s business jumped 28 Europe was one of the hot spots with reve- from Reed Exhibitions for an undisclosed scheduled shows. Capsule runs biannual shows percent, with skinny and high-waisted nue in the first quarter jumping 46 percent over amount. in New York, Las Vegas and Paris. It discon- silhouettes bestsellers. last year to $453 million. “The business contin- Sam Ben-Avraham, Liberty’s founder, said tinued a Los Angeles show, which last ran in Direct-to-consumer revenues—which in- ues to go from strength to strength, driven by the acquisition would make for a stronger trade March 2017. Liberty runs biannual shows in clude retail stores and e-commerce—grew marketing,” Singh said. show business and pool resources for buyers. Las Vegas and New York City. 24 percent based on an expanding retail net- China made up less than 5 percent of Levi’s “Bringing the Capsule show under the Lib- Capsule was created by New York–based as the company opened 22 stores during revenues, but the company still has its eye on erty Fairs Fashion Group creates an consultancy BPMW in 2007 and stages 10 the first quarter with a total of 100 new stores the market despite last year closing 150 of the even stronger platform for all of our shows. men’s and women’s shows annually in New planned for this year. unprofitable franchise retailers operating as We are always thinking about the future, about York, Paris and Las Vegas. A Berlin edition During the fourth quarter of last year, Levi’s stores within department stores. what’s coming, how we create the right thing to was shuttered two years ago. Its focus has been relaunched its store in the SoHo district of The company is optimistic about the cost satisfy our core audience and also attract new on fashion-forward brands and a significant . By the end of this year, it will open savings its new Project F.L.X. will deliver once eyes to what we are doing. Together we will women’s business. a new flagship store in New York City’s Times it is fully operational on a global basis by 2020. have more opportunities to serve the fashion Liberty started in 2013 as a menswear, Square neighborhood at 1535 Broadway, re- Announced earlier this year, the program uses space and also build our network of influencers denim and sportswear show. Vince Gonzales, placing the 10-year-old flagship store located lasers instead of manual to fade and experiment with some direct-to-consumer a veteran Liberty exhibitor, said that putting at 1501 Broadway. jeans. Lasers can reduce the time it takes to efforts,” he said in a statement. the two shows under the same company would Last month, Levi’s opened its first Latin distress a pair of blue jeans from two to three For several years, Liberty, which started out benefit both shows. “It will bring more foot American flagship store, located in the historic pairs an hour to 90 seconds a garment. as a menswear trade show, and Capsule have ex- traffic. It will bring together different kinds of district of Mexico City on Madero Street. —Deborah Belgum hibited adjacent to each other at the Sands Expo buyers,” he said. and Convention Center in Las Vegas. At the Sharifa Murdock, a Liberty co-owner, said February show, Liberty, Capsule and Agenda the shows will remain separate. collaborated on Assembly, a two-day confer- “With this acquisition, Liberty and Capsule Unifi Buys National Spinning Co. ence with speakers and workshops. Agenda will largely stay focused in their existing di- remains with Reed Exhibitions, which acquired rections. Show goers can expect to see similar Unifi Inc., known for its synthetic and re- liver on quick lead times and enhance the Capsule in 2014 for an undisclosed amount. brands on the show floor as in seasons past,” cycled yarns, has agreed to buy the dyed-yarn response to customers’ needs. Stephen Savage, Liberty’s president, said she said.—Andrew Asch business and assets of National Spinning Co. National Spinning’s sales, technical and Both are located in North Carolina. operations personnel will join Unifi as em- The purchase is expected to enhance Unifi’s ployees, and the company will also extend position as a leading producer of dyed staple employment to other National Spinning and filament yarn in the region and will add workers. acrylic and products to the company’s National Spinning was founded in 1921 dyed-yarn portfolio. The transaction is expect- with roots in worsted wool spinning and dye- ed to be completed in May. ing. After being a publicly traded company in National Spinning’s dyed-yarn business, the and , it became an employee- now located in Burlington, N.C., will be owned operation in the 1990s. shifted to Unifi’s dye house in Reidsville, Unifi is known for its recycled performance N.C., where it will operate on a seven-day fibers such as Repreve for , shoes and Get Into the Next TRADE SHOWS Special Section with Advertorial schedule. This allows the company to de- home .—D.B.

May 18 A California Apparel News Special Section RETAIL SALES

November 2017 2018 Easter Shopping Boosted March Sales Bonus : Retail sales for March faced some obstacles that Zumiez’s sales would rise 4.2 percent. Per- Dallas Market Center this year, but they came in better than expected. kins noted that March results came at the end Kingpins NY Ken Perkins, president of Boston-based Re- of 13 months of consecutive positive monthly LA Fashion Market tail Metrics, announced that U.S. retail sales comp gains. rose 8.1 percent at the retailers followed by his Long-suffering value retailer Cato Corp. Designers & Agents company after he initially forecast that sales posted a 6 percent jump in March. John Cato, PVNY would rise only 5.5 percent. Q&A Feature: Sourcing@Magic Trade Show Cold weather in March across Outlook on much of the United States was bad March Retail Sales WWDMagic 2018 Surf Expo news for retailers selling Spring $Sales % Change Same-store Shop & Dine: clothes, Perkins said, but an early (in millions) from yr. ago sales % change LA Textile LA, New York, San Francisco, Easter came to the rescue. This The Buckle $82.30 -5.2% -1.1% LA Majors Las Vegas, year, Easter was celebrated on Cato Corp. $96.90 +4.0% +6.0% Miami, Atlanta L Brands Inc. $1,020.00 +7.0% +4.0% Project and Dallas April 1, compared to last year, Trade Show Calendar when it took place on April 16. Zumiez Inc. $82.30 +14.7% +12.6% “The weather was a headwind, Information from company reports 01.TSCoverFinal.indd 1 11/8/17 6:41 PM but the holiday was a stronger tail- • Promote your business in the Trade • Expand your universe of new potential wind,” said Jeff Van Sinderen, an analyst for the retailer’s chairman, president and chief Show Section Including the industry’s clients firm B. Riley & Co. He fore- executive officer, forecast that the holiday cal- most comprehensive directory of • Receive six months of exposure at over cast that April numbers will decline because endar shift would take away from April sales. many shoppers wrapped up their shopping in “We expect April same-store sales to be in the international and domestic trade shows 15 shows March. Many retailers consider Easter busi- high, negative single digits and the combined ness to be so significant to March and April two months’ same-store sales to be in the low sales that they encourage investors to count negative single digits,” he said in a statement. both months’ results together. L Brands, the parent company of Victo- Call today for details on incentive space pricing, specifications and reservations: One of the big winners for March sales was ria’s Secret, reported a 4 percent increase in 213-627-3737 Zumiez Inc., the mall-based action-sports re- same-store sales. Denim-focused retailer The www.apparelnews.net tail chain. Its same-store sales increased 12.6 Buckle posted a dip in same-store sales, -1.1 THE APPAREL NEWS GROUP, 110 EAST 9TH ST. #A-777, LOS ANGELES, CA 90079 percent in March. Retail Metrics forecasted percent, for March.—A.A.

2 CALIFORNIA APPAREL NEWS APRIL 13–19, 2018 APPARELNEWS.NET

02.news.indd 2 4/12/18 5:08 PM NEWS The World’s Smallest Factory Introduced to FIDM Students

By Dorothy Crouch Associate Editor factured in sizes 5.5–9.5 for women and 8–12.5 for men. Brown explained. With the Uneekbot, Keen’s team hopes to Keen’s executives are excited about Uneekbot’s potential, further automate the process to make shoes. Since its launch in 2003, shoe brand Keen has but there are still some challenges. According to Brown, With the Uneekbot completing 80 percent of the shoe, the sought to change the market and become a force for good in Keen’s owner, Rory Fuerst, is known throughout the com- remaining 20 percent must be completed by hand. Despite the world. It is famous for its “Newport” —an active pany as a leader who challenges his team and is fascinated the decrease in the amount of hands required to manufac- footwear style designed with a reinforced toe—and it con- by in . With a tentative goal of ture each pair of shoes, there will still be opportunities to tinues to search for new . moving forward with new Uneekbot-manufactured increase jobs through finishing, machine maintenance and Keen’s most recent project has been working with Un- within one year, Brown is realistic regarding the obstacles production . eekbot, called “The World’s Smallest Shoe Factory.” Over a when working with the machine. The Keen collaboration with FIDM started with Owen two-year period, the machine was developed by a 17-year- “If a cord is just twisted a little bit, the robots are very reaching out to arrange a Uneekbot stop at the campus. The old engineer named Oscar Williamson and programmed by sensitive to the tension of the cords. So if the tension is not tour has also included visits to the of California, House of Design, a robotics system-integra- 100 percent correct, it San Diego; University of Southern California; University tion company in Idaho. could throw the machine of California, Irvine; and Stanford. At a cost of $300,000 per machine, Keen off a little bit,” he said. Eva Gilbert, who is FIDM’s department chair for mer- invested in three Uneekbots—located in Ja- The company pro- chandising and marketing, believed her production-and- pan and at the company’s headquarters in duces its soles at a sourcing students would benefit from learning more about Portland, ., with a third being built for Keen-owned factory in Keen’s work with Uneekbot, which fits perfectly into their the Netherlands location. On April 10, the curriculum. “They start out in the class taking a picture out of a magazine, and they have to source every com- ponent,” she said. “They have to find the material, they have to find the labor, and they have to find the boxes and the bags and the hangers.” While Keen wanted to reveal its exciting new manufacturing venture through tours, the company also is interested in finding innovative college stu- FIDM students observe the Uneekbot dents. At stops along the tour, Keen is offering in- demonstration ternships available only to students whom they meet during the company’s campus visits. Ultimately, Keen will choose five to seven students to join its team during the summer of 2019. The students who apply must design their own

DOROTHY CROUCH internships, outlining what they can bring to the Uneekbot inside of its solar-powered trailer company during their time at Keen. The internships will pay above minimum wage, with Keen covering company arrived at the Fashion Institute housing costs. of Design & Merchandising in downtown Keen Footwear’s Scott Owen and In addition to the internship, Keen is hosting a LA as part of its nationwide tour introducing FIDM’s Eva Gilbert design competition only for students of FIDM and Uneekbot to schools and companies aboard a Pacific Northwest College of Art in Portland. As solar-powered trailer. Thailand. Its paracord the Keen team explores its shoe-making possibilities with “Ultimately what we would like to be able is also made in Thai- the Uneekbot, it wants students to think about how they to do is have the machine in the store. The land, but the company’s would design products using the machine. The first-place ALEX J. BERLINER winner will receive $1,000 and a trip to the company’s - customer comes in, punches in the colors that Uneekbot creating a shoe project manager, Scott they want, the size, the style and sits there and Owen, revealed the goal quarters to present the design, with an $800 second-place waits eight minutes for a pair of shoes,” said Chris Brown, is to eventually find sources that are located within the vicin- prize and $400 for the third-place award, which also will design director of outdoor performance for Keen Footwear. ity of each robot and can provide materials to regional Keen include designs being showcased and promoted by Keen. “It’s like an automated vending machine.” locations. One of Keen’s latest goals was to increase the The dual-arm robot is able to manufacture one pair of “It’s [Uneekbot] really here to showcase a minimalist de- rate of its excess materials, which went from 55 percent to Uneek in eight minutes by knitting paracord through sign and really trying to utilize all the materials for the shoe 84 percent after one month. As a company committed to a rubber sole. The Uneek slide sandal design being manu- and not have any waste,” Brown said. “That is key regarding producing minimal waste, Keen has found unique ways to factured that day at FIDM will not be sold in stores, but the why we’re using a robot. We’re also trying to bring manufac- partner with other to reduce excess materials company is providing pairs for students to try. This exclusive turing back to the U.S.” that would otherwise end up in a . tour style most closely resembles Uneek’s “Monochrome,” a One of Keen’s most common shoe-manufacturing re- “All this extra cord is donated,” Owen said. “We found men’s design that at $100 and also features a heel and sources is its DESMA direct-attachment, injection-mold the Girl Scouts could take it and can use it for tying knots side wing not found on the Uneekbot-created shoes manu- machine, which molds the shoe’s outsole around an upper, and practicing.” ● Gen Z Prefers ’90s Brands in the Age of Instagram

This year, teens in the United States spent 38 per- ing —now the third-favorite clothing brand; cent of their shopping time at traditional department Vans—which stands as the No. 2 favorite footwear la- and specialty stores—down 3 percent from last year— bel; and , which recently launched a sneaker while 19 percent of their shopping time was spent on- line. In addition to these labels, streetwear brand Su- line compared with 17 percent last year. Amazon.com preme secured the seventh-favorite apparel brand spot. retained its position as the online marketplace for Though it retained the top position as the No. 1 fa- teens. vorite apparel brand, Nike experienced a decrease in Those were some of the findings from the 35th semi- mindshare, dropping to 23 percent from 31 percent in annual “Taking Stock With Teens” survey, conducted Spring 2017. With its move into the top three, Adidas by investment Piper Jaffray, which surveyed the doubled its mindshare from 3 percent to 6 percent as a spending habits of 6,000 members of Generation Z, top clothing brand. Despite Adidas’s impressive posi- whose average age was 16. tion, Vans experienced an increase from 9 percent to 16 Piper Jaffray found that teens’ overall spending since percent in the footwear category. last fall increased 6 percent—but 2 percent when com- In addition to the decline of Nike, Ralph Lauren pared with spring 2017. Thirty-eight percent of teen fell to number 12 in the survey, making this the first spending is devoted to clothing, shoes and accessories. time the brand was not listed in the top ten since the Video-game spending was up 14 percent from last year study began in 2002. while beauty purchases grew 4 percent. While the report showed Facebook engagement sta- With an annual contribution of $830 billion, Gen- bilizing with 45 percent of those surveyed using the site eration Z generates 7 percent of retail sales within the within the past month, 83 percent of teens used Snap- United States. Teenagers estimated their own spending chat and 82 percent have been on Instagram. Teens at $2,600 a year. admit that Instagram is the best method for branding. As the return to 1990s fashion continues, interest in Of the teens surveyed, 55 percent were male and 45 athletic apparel and streetwear is also growing, evident percent were female with an average household income in growth at brands that dominated that era, includ- of $66,300.—D.C. SOURCE: PIPER JAFFRAY

APPARELNEWS.NET APRIL 13–19, 2018 CALIFORNIA APPAREL NEWS 3

03.news.indd 3 4/12/18 5:30 PM SURF REPORT One Round of Surf M&A Over, Round Two Begins International’s last day of trad- While many Billabong shareholders felt ing on the Australian Securities Exchange was the company’s sale was lowballed at $1.50 per April 9, bringing an end to a major round of share, Cooper said that the two surf rivals will acquisitions in the surfwear market. be better sourced and capitalized under one Last month, Billabong shareholders ap- roof. proved a merger with Boardriders Inc., the In a February 20 research note previewing parent company of Billabong’s former rival the Billabong sale, Jeff Harbaugh, an analyst , headquartered in Huntington on action-sports business, also forecast the two Beach, Calif. companies would save money from a merger. The merger will create the world’s lead- But that didn’t mean pressure on the surf giants ing action-sports company with sales to 7,000 would be relieved overnight. “Certainly the wholesale customers in more than 110 coun- synergies matter, and there will be some. The tries, e-commerce in 35 question is whether the op- countries and more than portunities of two compa- 630 retail stores in 28 coun- nies in the same tough mar- tries, Boardriders said. ket improve just because But the wave of surf you put them together,” acquisitions and mergers wrote Harbaugh, president is not over with two major of Jeff Harbaugh & As- surf brands—Volcom and sociates. Rip Curl—up for sale. Patrik Schmidle, presi- On April 6, Kering, Vol- dent of market-research com’s parent company, an- group ActionWatch, said nounced it had started the the sales and consolidation process of selling the Costa of surf companies have Mesa, Calif.–headquartered been in the works for a brand, but there has been no A Volcom while. TPC’s Spring Networking Event word on a buyer yet. “Whenever you have a Join us for an evening of mingling and margaritas! Australian-headquar- stagnant or declining mar- tered brand Rip Curl reportedly has been ex- ket combined with a lack of differentiation, a ploring a sale since last year. Rumors reported lack of innovation and many brands compet- in early April by the Australian media said that ing for share in a shrinking market, that is a * New Date * a Sydney-based family had acquired the brand. recipe for consolidation,” he wrote in an email. However, no one has stepped forward to con- “With declining sales numbers for many years firm the story. Rip Curl runs a U.S. division in in the core surf channel, the current wave of Thu., May 3, 5 – 7:30 p.m. Costa Mesa. acquisitions has become somewhat inevitable.” This wave of acquiring surf brands hasn’t But the surf category may continue to navi- been this active since eight years ago, when gate choppy waters. “A key component to a Pez Cantina Billabong went on a buying spree, acquiring strong surf market is a healthy core retail chan- 401 S. Grand Ave., L.A., CA 90071 brands and retailers including RVCA, Ele- nel, and we are pretty far away from having ment, Dakine, Becker Surf & Sport, Sector that,” he added. 9 and West 49. But there are positive signs. In February, More than a decade ago, brands were sold retailers followed by the ActionWatch panel Register at the TPC for what many now consider inflated prices, saw positive year-over-year growth for the first said Joel Cooper, a career surf executive who time in a year. Many in the surf world hope www.theprofessionalclub.com currently works as chief executive officer of that a new generation of people will develop an Lost International and serves as a senior ad- interest in and surfwear, Schmidle said. viser to the board of directors of the Surf In- Positive factors include surfing will be an Big Thanks to Our Sponsors dustry Manufacturers Association. official sport in the 2020 Olympics in Tokyo, “History has shown that the surf market is and ventures including Kelly Slater Wave Co. cyclical,” he said. The days of ridiculously are hoping to build artificial-wave parks in ar- high valuations are over. The days of gloom eas that aren’t near the ocean, popularizing the and doom are over, too.” surf lifestyle in new territories.—Andrew Asch Calendar April 15 Shoes & Gift Show San Francisco Phoenix Convention Center Fashion Market Northern Phoenix May 3 California Through April 24 San Mateo Event Center TPC’s Spring Networking Event Pez Cantina San Mateo, Calif. April 25 Through April 17 Los Angeles DG Expo Fabric & Trim Show April 19 Dallas Market Center Dallas Marcum Retail Symposium Through April 26 There’s more JW Marriott on ApparelNews.net. Los Angeles April 26 For calendar details and contact April 22 2018 Graduation Fashion Show Academy of Art University information, visit ApparelNews. Arizona Apparel, Accessories, net/calendar.

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POSTMASTER: Send address changes to: CALIFORNIA APPAREL NEWS, Customer , PO Box 4419, Orlando, FL 32802. CALIFORNIA APPAREL NEWS®: (ISSN 0008-0896) Published by TLM INC. APPAREL NEWS GROUP Publishers of: California Apparel News®, Market Week Magazine®, New Resources®, Water­wear®, New York Apparel News®, Dallas Apparel News®, Apparel News South®, Chicago Apparel News®, The Apparel News (National), Bridal Apparel News®, Southwest Images®, Stylist® and MAN (Men’s Apparel News®). Prop- erties of TLM PUBLISHING INC., California Market Center, 110 E. Ninth St., Suite A777, Los Angeles, CA 90079, (213) 627-3737. © Copyright 2018 TLM Publishing Inc. All rights reserved. Pub­lished weekly except semi-weekly first theprofessionalclub.com week of January, second week of July and first week of September. Periodicals Postage Paid at Los Angeles, CA, facebook.com/ twitter.com/TheProfClub and additional entry offices. The publishers of the paper do not assume responsibility for statements made by their advertisers in business competition. Opinions expressed in signed editorial columns or articles do not necessarily TheProfessionalClub reflect the opinions of the publishers. Subscription rates: U.S.: 1 year, $89; 2 years, $140. Foreign: $180 U.S. funds (1-year subscription only). Single-copy price $2.99. Send subscription requests to: California Apparel News, Customer Service, PO Box 4419, Orlando, FL 32802 or visit www.apparelnews.net. For customer service, call (866) 207-1448.

4 CALIFORNIA APPAREL NEWS APRIL 13–19, 2018 APPARELNEWS.NET

04.calendar.indd 4 4/12/18 6:31 PM progressive-can.indd 1 3/8/18 7:03 PM EVENTS LA Fashion’s Next Generation From FIDM Shows Off Their Creations

By Dorothy Crouch Associate Editor With a soundtrack that strapless sweetheart dren’s version. included “Boom Boom neckline. Presenting a luxury line of beachwear, Shifting focus from aircraft to artistry, Room” by Totsy, Sofi For John and Vic- Kiki Potterton—recipient of the Jack and Barker Hangar in Santa Monica, Calif., Tukker’s “Best Friend,” toria Hill Scholarship, Joan Bonholtzer Scholarship and Bob was the scene of the Debut Runway Show, “A Different Way” by DJ Jerry Epstein Scholar- Mackie Scholarship—was inspired by her an annual event that allows selected gradu- Snake and a reworked ship and Debut Schol- honeymoon in Jamaica, leading her to de- ating students from the Fashion Institute of version of Marilyn Mon- arship recipient Char- sign pieces such as a black two-piece swim- Design & Merchandising in downtown Los roe’s “Diamonds Are ity Dahl, with gold chain and beaded strand over- Angeles to showcase their collections. a Girl’s Best Friend,” and comfort were the lay in the back, paired with a black floor- The April 7 event was emceed by FIDM FIDM’s Advanced Study focus of her collec- length tulle-and-pearl-waisted walk-through alumnus and fashion designer Nick Verreos. students tion, which included a . The show began with a presentation of unveiled bright, colorful knee-length red patent- Inspired by wearable pieces for city life, projects from seven students in the Advanced sportswear; chic resort- with round Mia Conroy, who received a FIDM Merit Theatre Design program—Katie wear; playful children’s cutouts secured with Scholarship, relied on red, black and gray for Chesne, Viviana Gil Barrios, Katherine Ho- designs and elegant—yet grommets and a belted pieces that included a plaid miniskirt paired ang, Melissa Karsh, Ethan Lieberman, En- modern—formalwear. . with matching long-sleeved that fea- rique Solana and Taylor York—who adhered Naming his collec- Focusing on knit- tured fringe detail at the elbows and was to the theme of “Kings and Queens: Court tion “Hello, Sailor,” wear, Emiko Terasaki, worn over a black turtleneck. VOLKER CORELL Me!” FIDM Merit Scholarship Charity Dahl Tanee Prasert who received the Rose Using cream and navy hues that repre- Models on the runway dressed in cos- recipient Tanee Morbit Bolognone sented the sand and sky of the Middle East, tumes inspired by “Camelot,” “The Three Prasert designed Scholarship, wanted Ali Jawad, who received the Jerry Epstein Musketeers,” Napoleon Bonaparte’s France naval-inspired to generate a new Scholarship and Karen Kane Scholarship, and “King Lear” and acted out dramatic party and formal- appreciation for knit designed a line of menswear that included scenes that told stories from these tales as the wear, including a pieces, which in- navy with straight zippered pockets video backdrop depicted enchanted forests knee-length, blue- spired styles includ- and a cream, double-vented full-length box- and European landscapes. and-white-striped ing a full-length A- er-inspired with . Showcasing the collaborative work be- sheath with line halter dress with For Rodrigo Bunton Navarrete, a FIDM tween students from the Fashion Design, In- an anchor appliqué a black-and-white Merit Scholarship recipient, the terior Design and Textile Design programs, in red sequins on wavy pattern at the of New York City were the inspiration for Chairing Styles revealed the work of 10 the front, sparkling bust and red, black, his collection of women’s formalwear, such groups, each comprising one designer from red epaulettes and a white and gray skirt. as a floor-length halter in steel blue the three departments. Using fabrics provid- draped back. Using the sunset with jeweled neckline and shimmering belted

ed by Textile Express, each project featured FIDM Merit ALEX J. BERLINER to inspire her color waist. textile, chair and fashion designs that were Scholarship recipi- Ali Jawad, Kiki Potterton, Charity Dahl, Tanee scheme, FIDM Merit Planning a contemporary bridal line was created by the students. Each chair design ent Ting Wang was Prasert, Rodrigo Bunton Navarrete, Aurora Scholarship recipient the goal of Guess Scholarship recipient Gen- was made into a usable piece by a manufac- inspired by the col- Ziqiao Luo, Emiko Terasaki, Ting Wang, Mia Aurora Ziqiao Luo evieve Lake, whose collection—named “Joie turing partner, a group that included Form ors from within the Conroy, Genevieve Lake created a line of chil- de Vivre”—included a shimmering white + Function, Cisco Brothers, Wise Living Museum of Ice Cream to create her men’s drenswear made for fun and comfort, such halter top with plunging neckline paired with Inc., Magni Home Collection, Sardo In- and women’s sportswear line, which included as a knee-length yellow with a wide-leg trousers worn under a tea-length terior Services, Michael Taylor Designs hues of bright yellow and deep blue, as seen pig-face illustration, which she also made in tuxedo jacket and top that featured a tulle Inc., Vitality Furniture, Haute House, in her sparkling sapphire and white bias- her own size to wear as she walked down the accented with rhinestones and a large Jenifer Janniere and Quintus. cut tea-length dress with tulle underlay and runway with a little model who wore the chil- bow in the back. ●

Three Musketeers Napoleon Bonaparte’s France ALEX J. BERLINER Ali Jawad Aurora Ziqiao Luo Rodrigo Bunton Emiko Terasaki Navarrete

Mary Stephens Lonnie Kane and and Barbara Karen Kane Bundy Ethan Lieberman, Taylor York, Katherine Hoang, Viviana Gil Barrios, David Mickelson, Melissa Karsh, Enrique Solana, Katie Chesne (in front)

Angela Dean Nick Verreos and and Kevan Hall Kevan Hall Chairing Styles Kiki Potterton Mia Conroy Genevieve Lake Camelot

6 CALIFORNIA APPAREL NEWS APRIL 13–19, 2018 APPARELNEWS.NET

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marcum.indd 1 4/4/18 2:34 PM WEB PRODUCTION PRODUCTION MANAGER NEWS MORGAN WESSLER KENDALL IN CREATIVE MARKETING DIRECTOR EDITORIAL DESIGNER LOUISE DAMBERG JOHN FREEMAN FISH AST Sportswear Continued from page 1 DIRECTOR OF SALES AND MARKETING MANAGER 731945-2018 TERRY MARTINEZ RITA O’CONNOR Where American Apparel was loud and Seventy-three years of news, SENIOR ACCOUNT EXECUTIVE fashion and information sexy with its raucous billboards and newspa- AMY VALENCIA PUBLISHED BY ACCOUNT EXECUTIVE TLM PUBLISHING INC. per ads, AST Sportswear does no consumer CEO/PUBLISHER LYNNE KASCH TERRY MARTINEZ APPAREL NEWS GROUP advertising for its Bayside label of basic T- BUSINESS DEVELOPMENT Publishers of: MOLLY RHODES California Apparel News shirts, , , tote bags, sweatshirts and EXECUTIVE EDITOR SALES ASSISTANT/RECEPTIONIST Waterwear Decorated safety wear. DEBORAH BELGUM ASHLEY KOHUT Where American Apparel was constantly RETAIL EDITOR ADMINISTRATIVE ASSISTANTS EXECUTIVE OFFICE ANDREW ASCH CHRIS MARTIN California Market Center making headlines, AST Sportswear has been ASSOCIATE EDITOR RACHEL MARTINEZ 110 E. Ninth St., Suite A777 quietly growing, slowly moving as its head- DOROTHY CROUCH SALES ASSISTANT Los Angeles, CA 90079-1777 PENNY ROTHKE-SIMENSKY (213) 627-3737 quarters in Anaheim kept growing until the EDITORIAL MANAGER Fax (213) 623-5707 CLASSIFIED ACCOUNT EXECUTIVES company bought a large facility in Brea. JOHN IRWIN Classified Advertising Fax ZENNY R. KATIGBAK CONTRIBUTORS (213) 623-1515 What started out as four brothers working JEFFERY YOUNGER ALYSON BENDER www.apparelnews.net long hours, six days a week, is now a large VOLKER CORELL CLASSIFIED ACCOUNTING [email protected] A Bayside booth at the recent Imprinted JOHN ECKMIER MARILOU DELA CRUZ enterprise with some 500 employees. Sportswear Show in Long Beach JOHN McCURRY SERVICE DIRECTORY ACCOUNT EXECUTIVE ESTEVAN RAMOS Printed in the U.S.A. The company has been so under the radar TIM REGAS JUNE ESPINO N. JAYNE SEWARD that until last year it didn’t even have any HOPE WINSBOROUGH NATALIE ZFAT salespeople on staff besides the four broth- ers. That changed after it leased the former American Apparel facilities and acquired the machinery inside. “We thought, ‘Let’s think outside the box and grow more,’” said Abdul Get Inspired! Rashid, chief operating officer and one of WE KNOW FABRIC! the four brothers who founded the company Hundreds of Stocked in 1995—at about the same time American WE KNOW FASHION! Apparel opened its doors in Los Angeles in Novelty Knits, 1998. Oldest brother Mohammed is a man- Wovens, Linings ager; Ali, the next oldest, is the chief execu- and More! tive officer; and Omar, the youngest, is the Mohammed, Ali, Abdul and Omar Rashid chief financial officer. The four grew up in One Roll Minimum. Diamond Bar, not far from Brea. aprons, safety wear, beanies, and totes. Four- In the mid-1990s, the four brothers saw teen new styles were added this year to pump www.cinergytextiles.com a big void in apparel companies that could up the fashion selection to 94 items. Basic T- quickly manufacture a blank T-shirt for shirts wholesale for about $3 and above. Tel: 213-748-4400 private-label customers. This was when the That first trade show garnered AST Sports- [email protected] North American Free Trade Agreement be- wear enough orders and contacts that by 1997 tween the United States, Canada and Mexico the brothers moved to a 15,000-square-foot had recently passed and many manufacturers facility near what is now called Angel Sta- were scurrying to Mexico to do production. dium of Anaheim, where they added their “There was a void,” recalled Abdul. “Every- own cut-and-sew center employing about one was leaving and going overseas. It was, 100 workers. “We wanted our own facility to for us, doing just-in-time delivery. People maintain quality, and our volume was consis- needed goods now.” tent,” Abdul said. The company started out small in a The company kept growing and moved 2,000-square-foot space and of- one more time, to Anaheim Hills, before ac- fered one basic T-shirt—style 5100—in four quiring in 2013 its 115,000-square-foot fa- colors. cility in Brea, which houses the company’s A year after launching, the company offices, warehouse, distribution center and manufacturing facility with 300 workers. AST Sportswear also has a unionized sewing factory in Huntington Park, Calif., that employs 40 workers who make T-shirts for mostly labor unions, which want union-made apparel. After taking over American Apparel’s facilities two years ago, the company grew to 500 employ- ees. While it may not be the larg- est cut-and-sew T-shirt operation in the United States, most people believe it is the largest vertically Scores of garment employees work in the Brea facility. integrated operation of its kind in the United States, even though the started its own T-shirt label, called Bayside. company does not disclose its revenues. That same year, AST Sportswear attended “We have been a distributor of theirs for its first trade show, the Imprinted Sports- over 15 years, and they have grown phenom- wear Show in Long Beach, Calif. In those enally,” said Bob Winget, president of TSC days, everyone wore a suit to the show. These Apparel in Cincinnati. He is one of 12 dis- days, you’d get thrown out of the show if you tributors who sell the Bayside label. “They showed up in a suit. have such an incredible presence in that The four brothers—who were still the only ‘Made in the USA’ category.” employees—initially reserved a basic 10-by- Scott Wilson, a Los Angeles apparel 10-foot booth for the show because that was maker who has specialized in domestically all they could afford. Then Abdul decided they made T-shirts, has watched AST Sportswear should make a splash. “We needed an image, I grow rapidly over the past few years. “When thought, if we were going to go out there,” he you combine all the elements they have in a said. “I went to a business in our complex. He vertical operation, they may be the largest built our booth and we did a payment plan.” [in the United States] but not when it comes The booth mushroomed into a 10-foot- to sewing. There are a few companies back by-30-foot space, which was an eye-catching East that have 500 to 600 sewing workers, burgundy with gold trim. “People came by but they are not vertical.” the booth and said, ‘Wow.’ They thought we Today’s AST Sportswear is a far cry from were a really big company,” the COO said, the beginning, when the four brothers were recalling that the company’s two-page fact doing everything—from answering phones sheet of products consisted mostly of long- and taking orders to pasting mailing labels sleeve and short-sleeve shirts. Today, the on 100 boxes at a time, loading trucks and product lineup fills a 68-page booklet that making deliveries. “There is nothing we has several styles, including raglan crew and haven’t done,” Abdul said. “We were work- tri-blend crew T-shirts, racerback tanks, polo ing 12, 14, 16 hours a day, six days a week. shirts, sweatshirts, fleece vests and , Whatever it took.” ●

8 CALIFORNIA APPAREL NEWS APRIL 13–19, 2018 APPARELNEWS.NET

01,8-9.cover.indd 8 4/12/18 5:21 PM NEWS

Rodeo Drive Continued from page 1 and make few purchases with the flagships serving as expensive billboards for major Eu- purchased on March 28. ropean fashion houses. The sale also made news because the pre- Retail analysts are divided on the business vious owner, Sterling of Palm of flagships. Marshal Cohen, chief industry Beach, Fla., bought it one day for $55 million analyst of The NPD Group, said luxe flagship and the next day flipped it for $110 million, ac- stores don’t earn their keep with cash. “Flag- cording to a statement from the organization, ships are not about making money but show- which is not related to Los Angeles billionaire casing the brand. The money allocated to it of- Donald Sterling. ten comes from the marketing budget, not the After buying the property, Sterling ap- retail budget. Having a high-profile flagship at proached LVMH about leasing the property. a prestigious location is one of the few ways Instead, the company said it preferred to own it. brands can continue to showcase the essence of Jay Luchs, vice chairman of Newmark the brand and reinforce the full range of prod- Knight Frank, who handled the deal, said the ucts not able to be displayed at retail partners,” benefits of buying a building include knowing he said. your rent won’t rise or that you will not lose Michael Brown, a global strategy and man- your . “They are in full control. They are agement consultant, said marketing is a signifi- the landlord. They can control their own des- cant function of flagship stores, but it isn’t the tiny,” Luchs said. whole story. Rodeo Drive is one of the priciest shopping streets in the United States. “Retail location profitability is becoming Keeping the Golden Triangle golden increasingly more difficult to measure because purchases made online are often While many may doubt the future of re- a result of a store visit. We call this the tail in general, Brian D. Kosoy, Sterling’s difference between ‘value creation’ [the president and chief executive officer, said visit] and ‘value capture’ [the sale trans- it was crucial for luxury brands to be on action]. In a broad definition of profit- the affluent shopping street, which marks ability, the flagship’s contribution can be the center of Beverly Hills’ Golden Tri- measured and they can be profitable,” he angle. “In New York, luxury retailers have wrote in an email. plenty of viable options where they can lo- Selling expensive clothes can help the cate,” Kosoy said. “On the West Coast, it’s bottom line. all about those three, high-value blocks “Luxury retailers have the advantage of Rodeo Drive, where the world’s pre- of high price points, which facilitates mier luxury brands must have a presence profitability even when real estate comes by planting their flag. As a result, when at a high price,” added Brown, who is a a circumstance presents itself to acquire partner at A.T. Kearney and the author a Rodeo Drive property, you aggressively of “The Future of Shopping Centers.” pursue it, regardless of the complications LVMH acquired this building at 465 N. Rodeo Drive. Tourists visiting Rodeo Drive Tyler Higgins, a director of global involved in getting a deal done.” consultancy AArete, said it is crucial to Space does not come cheap on Rodeo Drive. A square tee and the general manager of the flagship for Valentino. have space on Rodeo Drive because of the people who shop foot of commercial space on the street rents for $50 to $70 “When flagship stores open on Rodeo, they don’t really there. “Companies may assign a value to the intangibles of per month. The second most expensive retail space in the leave,” she said. Stores may move to temporary quarters being on Rodeo around other luxury brands, but they are still Los Angeles area is on the Third Street Promenade in San- when the flagships are being remodeled. able to make money. Why can they be unwavering in their ta Monica, Calif., where retail rents average $20 a month per Currently, there are a handful of spaces available on Ro- price point? For starters, their target shoppers are not ones square foot, Luchs said. deo Drive. The former Hugo Boss space, at 414 N. Rodeo who browse Amazon.com looking for rock-bottom pricing The LVMH acquisition may have made headlines, but it Drive, is being split into two spaces. Also vacant is 449 N. but rather ones who want the treatment that these doesn’t compare to Chanel’s deal at the end of 2015 to buy Rodeo Drive, which formerly housed the Paul & The stores provide. the building it now occupies on the corner of Rodeo Drive menswear brand. The Zadig & Voltaire space at 465 Rodeo “Being able to shop on Rodeo Drive drives an air of exclu- and Brighton Way for $152 million. Drive is listed as available for sublease. sivity that these brands are seeking. This exclusivity drives In August 2016, LVMH paid $122 million for the House Rodeo Drive is a big attraction for tourists. Walk through up the ability for them to charge $4,000, $10,000, $30,000 of Bijan building at 420 N. Rodeo Drive. the enclave and you’ll hear people speaking in languages for bags, shoes and clothes. As long as tourists, along with Finding a space on Rodeo is tough, said Kathy Gohari, from every corner of the world. But there has been criticism other shoppers, continue to arrive, Rodeo Drive and the flag- president of the merchants group Rodeo Drive Commit- that tourists and locals merely window-shop on the street ship stores will remain,” Higgins said. ●

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$2.99 VOLUME 74, NUMBER 12 MARCH 23–29, 2018 $2.99 VOLUME 74, NUMBER 11 MARCH 16–22, 2018 $2.99 VOLUME 74, NUMBER 9 MARCH 2–8, 2018 YEARS YEARS YEARS THE VOICE OF THE INDUSTRY FOR 73 TRADE SHOW REPORT A Return to Hollywood THE VOICE OF THE INDUSTRY FOR 73 LA Market Sees Showrooms THE VOICE OF THE INDUSTRY FOR 73 The Big Issue of Glamour With Adrian and Stores Adjusting to the By Dorothy Crouch Associate Editor label was introduced as a revival Microfibers in AB 2379 work nearly 60 years after the ‘New Normal’ in Retail Last fall, the Adrian MGM’s most By Dorothy Crouch Associate Editor of designer Gilbert Adrian’s By Andrew Asch, Deborah Belgum and Dorothy Crouch founder’s passing. As a stylist for some of Last month, state Assembly member Richard Bloom intro- revered golden-age actors—including Greta Garbo, Joan Buyers fanned out to the various showroom buildings in the - Crawford and Judy Garland—Adrian laid the foundation for Los Angeles Fashion District for the March 12–14 run of Los duced Assembly Bill 2379 to the California State Legislature. old Hollywood glamour. Angeles Fashion Market, which was highlighting the The bill would require manufacturers of clothing that comprises The new label first came out with a Spring/Summer 2018 for Fall/Winter 2018. more than 50 percent polyester to include a label recommend collection named “Papillon.” The label’s revival was led by The market’s three days of activity were punctuated by the ing consumers bypass the washing machine and handwash founder and designer Kate Silverman, who was working as arrival of President Donald Trump, whose entourage stayed at these items instead. the InterContinental in downtown Los Angeles, creat- It is Bloom’s hope that spelling out these instructions will an intern with Christian Dior by the age of 15 and became - fascinated with Adrian’s work while studying the Théâtre ing a constant traffic jam that started Tuesday afternoon and lead to increased consumer awareness of the potential environ- de la Mode during college. ended Wednesday morning. mental threats he says occur from synthetic microfiber shed- As a history enthusiast and fashion connoisseur, Silver At this market, many showroom owners felt buyers were ding. “Some of the [bill] advocates think that we should be mov- man was inspired not only by Adrian’s legacy but also the only visiting the brands they felt comfortable with and not ex- ing toward more draconian solutions, like banning synthetic absence of classic glamour in today’s market. The designer ploring untested labels. Attendee traffic throughout the district clothing. Those would have greater consequences that don’t emphasizes that her intention was to cultivate a modern in- was hit and miss, depending on the building and the showrooms make sense,” said the Democrat, whose district office is head- terpretation of Adrian’s creations, which were➥ influenced Adrian page by 8 as e-commerce takes a chunk out of sales that had once been quartered in Santa Monica. “We need to become more aware, the military, nature and butterflies. allocated only to boutiques and stores. ➥ LA Market page 6 At the California Market Center, traffic was slower than continue the research and take reasonable steps to reduce the Assembly Bill 2379 page 3 amount of microfibers in our aquifers➥ and go where the re-

Retail Moves Over to Making Tall Women New Owners of American Live Streaming Video Comfortable in Their Apparel Set Goal to By Andrew Asch Retail Editor Own Skinny Jeans Double Sales This Year

The days of selling clothing on e-commerce with still pho- By Dorothy Crouch Associate Editor By Deborah Belgum Executive Editor tographs are considered boring to Tina and Bryan Moore, who recently launched the e-platform TalkShopLive. When women who measure at least 5 feet 9 inches tall It has only been a little more than one year since Gil- The concept works this way. Entrepreneurs make pitches shop for denim, they are often left feeling as though styles dan Activewear acquired, the decades-old the intellectual-property Los Angeles rights apparel of through live streaming video, which gives the entrepreneurs such as flares or skinny jeans will end up resembling cropped American Apparel a potentially unlimited audience, according to the Los Ange- gauchos or capris. company that twice declared bankruptcy in a little more than les–based brother-and-sister team, who introduced the privately - Standing at 5 feet 11 inches, former model and actress one year. owned TalkShopLive in early March. Kathryn Brolin decided it was time to launch Midheaven At its peak, American Apparel’s revenues climbed to “While you are talking live, people are shopping,” Bryan Denim to provide solutions for other tall women who want nearly $634 million in 2013 before the long descent of the Moore said, pointing out what he sees as a hole in the market to find their ideal denim. company founded by Dov Charney in 1989. place. “Midheaven targets tall women like me who are looking Gildan took formal control of American Apparel in Feb- The rules for TalkShopLive are different compared to TV for inseams a bit longer than what is usually found out there, ruary 2017 and had a little more than one month to ramp up shopping networks, said Moore, who made a career produc- but we’ve been so pleased to see that women of even average new production and then get the label in front of wholesalers ing social-media content for broadcast networks and heights are ordering and absolutely loving their Midheav- and consumers again. In that first year, Gildan took in $50 other outlets. ens. So, they’ve been , they’ve been hemming, they’ve million in sales. This year, the goal is to double sales to $100 On his platform, entrepreneurs employing user-generated ➥ TalkShopLive page 3 been self-altering their jeans.” ➥ Midheaven page 3 million. content can sell from any location as long as they can connect to With a soft launch of four styles in January, Brolin is aim- Key to boosting revenues is the marketing team, which is ➥ American Apparel page 3 located in Los Angeles even though Gildan is headquartered

SM SM INSIDE: INSIDE: 7 SM Where fashion gets down to business Where fashion gets down to business INSIDE: MEDIEVAL TIMES Where fashion gets down to business 7 4 Fernando Alberto was one of several 2 2 8 GAME OF FASHION designers who showed during New York 7 Guess earnings down ... p. 2 Law firm departs Guess ... p. 2 Fashion Week. For more looks, see page 6. Agenda names new executive ... p. 2 This ethnic look created by Los Angeles Gap pushes factories to digital ... p. 2 COLOR CODED S.F. fur ban ... p. 3 Bachrach stores close ... p. 3 At LA Fashion Week, Los Angeles designer Nicholas Chinese tariffs ... p. 3 designer Nathalia Gaviria was seen at Art Understanding PLM ... p. 3 Gap earnings up ... p. 4 NuOrder online trade show ... p. 4 Hearts Fashion during Los Angeles Fashion Resource Guide ... p. 9 MR Magazine sold ... p. 9 Mayfield burst onto the runway with a colorful assortment Resource Guide ... p. 9 of clothing that incorporates his talents as an artist. For www.apparelnews.net Week. For more looks, see page 8. www.apparelnews.net more looks from LA Fashion Week, see page 6. www.apparelnews.net

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