Sycamore to Buy Talbots for $369M by VICKI M

ARMANI’S BEIJING BRIDGET FOLEY’S DIARY BASH WINDOW-WATCHING AT BARNEYS PAGE 13 PAGE 3

TOUGH TURNAROUND Jean-Paul Agon Sycamore to Buy Talbots for $369M By VICKI M. YOUNG

THE TALBOTS INC. ended up with Sycamore Partners after all. Sycamore is buying the struggling women’s specialty chain for $193.3 million in cash. Including net debt, the transaction has a total value of $369 million. FRIDAY, JUNE 1, 2012 ■ $3.00 ■ WOMEN’S WEAR DAILY The deal is expected to close in the third quarter. The acquisition price will give shareholders $2.75 WWD a share, less than the $3.05 a share that was previously put on the table by the private equity fi rm. The price per share that shareholders will receive CEO SUMMIT 2012 is still far more than the closing price of Talbots’ stock on Wednesday, which was $1.29 a share. Shares of Talbots spiked 89.2 percent to $2.44 in trading Thursday on the Big Board. Stefan Kaluzny, managing director of Sycamore Partners, said his fi rm is looking forward to a “long and successful partnership with Talbots serving its many loyal customers.” Trudy Sullivan, Talbots’ president and chief execu- Beauty’s tive offi cer, said, “Sycamore Partners is a strong in- For three days in May, top leaders of the global cosmetics industry gathered vestor with substantial resources and expertise, and we look forward to operating as a private company in Palm Beach, Fla., to explore the under their ownership.” shifting landscape and emerging Sullivan plans to step down at Talbots on June 30, or sooner if her successor is found. consumers that pose a riddle as well Thursday’s announcement was an abrupt change as a much-sought prize. For complete from a week ago, when the two said the exclusivity coverage, see pages 6 to 12. agreement they had to close on a transaction had ex- pired without further extension. The news led inves- New tors to believe that Sycamore had walked away, since John Talbots said it was weighing alternative options. There Demsey even was speculation that Talbots might be facing a bankruptcy before yearend if it couldn’t fi nd a buyer. Talbots has been struggling with persistent losses, a multiyear decline of its stock price and liquidity concerns. Besides the retirement of Sullivan without identifying a successor, the chain also dismissed its chief creative offi cer, Michael Smaldone, in September. His position has not been fi lled. The retailer operates in World SEE PAGE 4 Marigay Iman McKee Letter From London

By SAMANTHA CONTI

LONDON — She was a fresh-faced 25-year-old on an offi cial tour of Kenya with her husband of six years, E. Scott Philip. Harry Truman was president of the United Beattie States and Winston Churchill was the British prime minister. And on Feb. 6, 1952, Elizabeth Windsor became Queen of England. Her coronation on June 2, Zhuo “Joe” 1953, seemed to herald a new era for Britain — for on Wang the same day it was announced that a British-led team had conquered the world’s highest peak, Mount Everest. Flash-forward 60 years and it once again seems Britain’s time. The nation is preparing to mark the Queen’s Diamond Jubilee — making her the second-longest-serving monarch after Queen Victoria. London is hosting the Summer Olympics for the fi rst time since 1948. All that’s needed is for a Briton to win Wimbledon and it would seem the stars were in absolutely perfect alignment. That’s unlikely to happen, but nothing would surprise the 86-year-old monarch with the white set curls, megawatt smile and penchant for horse racing, homeo- pathic remedies, corgis and silk Hermès head scarves. Throughout her six-decade reign, she’s weathered family tragedy, scandal, mishaps and more — and has remained as implacable as Mount Everest itself. Her famous annus horribilis in 1992 — when she marked her 40 years as queen — was a particularly trying time in a diffi cult decade that saw her family behaving badly and public opinion for the monarchy hitting a low. Princess Diana’s death in 1997 — and the Queen’s initial failure to tune into the national PHOTOS BY STEPHEN LEEK SEE PAGE 16 2 WWD FRIDAY, JUNE 1, 2012

Nike to Divest Cole Haan, Umbro THE BRIEFING BOX Nike in 1988. The brand special- losses at Umbro, Hurley and Cole IN TODAY’S WWD By VICKI M. YOUNG izes in casual and dress leather Haan. He noted that while rev- footwear, bags and outerwear. enues have risen for the smaller NIKE INC. is trimming its port- But the company has suffered business, profitability was chal- folio to focus on its four core ath- ups and downs under Nike, lenged primarily by lower gross letic brands. bringing in a string of ceo’s to margins. He also noted that as Princess Elizabeth, The company said Thursday build the brand in the U.S. and the company was heading into circa 1930. it will sell the Cole Haan and internationally with mixed suc- the fourth quarter, it expected Umbro brands. The move will cess. While Cole Haan has adopt- strong revenue growth driven allow it to focus on growing the ed Nike Air technology for many “largely by the strength of the Nike, Jordan, Converse and of its shoes, and worked with Nike brand and Converse.” Hurley divisions. The group will Maria Sharapova on a collection, For the third quarter ended begin the divestment process im- it remained a small part of the Feb. 29, the Beaverton, Ore.-based mediately, and it expects to com- overall Nike business. athletic footwear and apparel plete the sales by the end of the British soccer brand Umbro giant expanded net income 7.1 fiscal year on May 31, 2013. was acquired in 2008 and was percent to $560 million, or $1.20 Mark Parker, president and trumpeted at the time by Nike a diluted share, above the $1.17 chief executive officer, said, “We as a move to build its global busi- analysts’ estimate as well as the

see tremendous opportunity to ac- ness in the key category. year-ago mark of $523 million, or IMAGES ARCHIVE/PRESS ASSOCIATION celerate profitable growth around In its last conference call to $1.08. Total revenues were up 15.1 PA the world by continuing to deliver Wall Street on March 22 when percent to $5.85 billion from $5.08 innovations and inspire consum- the firm posted third-quarter billion, as Nike brand footwear PHOTO BY ers through the Nike brand.” earnings, Donald W. Blair, chief sales rose 16.7 percent to $3.35 Parker added that the com- financial officer and vice presi- billion, and apparel volume was pany also saw “significant poten- dent of Nike Inc., said earnings up 12.2 percent to $1.46 billion. Sycamore Partners is buying The Talbots Inc. for tial” in the Jordan, Converse and before interest and taxes for its For the nine months, net in- $193.3 million in cash, in a deal expected to close in the Hurley brands, which he said have other-businesses category rose 2 come rose 8.8 percent to $1.67 third quarter. PAGE 1 “unique consumer relationships percent due to solid profit growth billion, or $3.56 a diluted share, that complement the Nike brand.” at Converse and Nike Gold, al- as revenues added 17 percent to The global spotlight is on Great Britain as the nation Cole Haan was acquired by though that was mostly offset by hit $17.66 billion. prepares to celebrate Queen Elizabeth II’s Diamond Jubilee. PAGE 1

Barneys New York expects to unveil the new windows, created with the Deste Foundation for Contemporary Art, at PPR Relocating Paris Headquarters its Madison Avenue flagship tonight. PAGE 3 PARIS — Yves Saint Laurent similar style, Allianz stated. make California his creative hub. Rive Gauche? Or Yves Saint Renovations began in June 2011 Since being appointed at YSL Most U.S. retailers posted modest comp-store sales gains Laurent West Coast? and are due to be completed at the in February, Slimane also spent in May, and they may have Mother’s Day to thank. PAGE 4 Yo u could use both addresses end of 2013, with PPR expected time working out of the Paris of- for the storied French fashion to move its headquarters there in fices of Artémis Group, the hold- In order for companies to lead tomorrow, executives have house as word emerged that YSL 2014, the real estate firm added. ing company for PPR. It is un- to go where customers are leading them, Estée Lauder’s parent PPR signed a lease to A spokeswoman for PPR said the derstood he plans to use salons John Demsey said at the WWD Beauty CEO Summit. PAGE 6 move its Paris headquarters to French retail-to-luxury conglomer- there at 12 Rue François 1er for the Left Bank. ate would move its corporate of- fittings, while ateliers for YSL When it comes to building a beauty brand, technology Separately, a YSL spokeswom- fices, presently located at 10 Avenue continue to be based at its cur- has flattened the playing field, said Elizabeth Arden Inc.’s an confirmed that new creative Hoche on the Right Bank, but had rent headquarters on the Avenue E. Scott Beattie. PAGE 8 director Hedi Slimane plans to yet to decide if any of its brands George V here. base his creative studio in Los would follow suit. She declined to Slimane has a passion for big Iman’s message to mass-market channels: ethnic Angeles on an ongoing basis. detail the value of the lease. cities with dynamic art and music beauty can’t be confined to part of a cosmetics wall nor Allianz Real Estate said According to sources, PPR scenes. During his Dior years, he to a handful of doors in urban areas. PAGE 9 Thursday it had signed a lease has considered housing person- gleaned creative inspiration from with PPR for the office portion nel from some of its Paris-based Berlin and London, and published Giorgio Armani promised to wow Beijing in only one of its development at 40 Rue de brands, which include YSL, books of photography devoted to night and did so Thursday by putting on a fashion Sèvres, formerly home to the Balenciaga and Boucheron, at youth culture in those capitals. extravaganza in the art district. PAGE 13 Laennec Hospital. the new site, a stone’s throw from Designers at certain WWD first reported on April the swanky department store Le European houses do not neces- Purple magazine has given its Web site a fresh coat of 26 that PPR was in talks to move Bon Marché. sarily design in the cities where paint and it has a deeply commercial shade. PAGE 13 to the Laennec site. Meanwhile, Slimane, who relo- their brands are based. Phoebe The PPR offices are to be located to Los Angeles and pursued Philo, for example, works out of The subterranean level of New York’s Crosby Street cated in renovated historical a career in art making and photog- London for Paris-based Celine. Hotel was in bacchanalian splendor on Wednesday night buildings and in two new struc- raphy since exiting Dior Homme — MILES SOCHA AND for the American launch of Superga sneakers. PAGE 15 tures that are being built in a in 2007, has decided to continue to JOELLE DIDERICH Hilary Swank will present Marc Jacobs International president Robert Duffy with the Piaget Award of Inspiration New Investors for Lindeberg’s BLK DNM at amfAR’s third annual Inspiration Gala. PAGE 15 ON WWD.COM NEW YORK — Johan Lindeberg has found a new The brand has since expanded into wholesaling, investor for his BLK DNM collection. selling such accounts as Colette, Harvey Nichols, Lindeberg, creative director and founder of BLK Browns in London, Saks Fifth Avenue, Ron Herman EYE: Britain is preparing to mark the Queen’s Diamond DNM, said Thursday the Hargreaves family has in- and Lane Crawford. It also has a freestanding retail Jubilee —making her the second-longest serving monarch vested in his New York-based jeans brand. With the store in New York at 237 Lafayette Street, as well as after Queen Victoria. For more photos of Queen Elizabeth II financial restructuring, BLK DNM will no longer a store in Stockholm. through the years, see WWD.com/eye. be financed by Kellwood “We invest in businesses Co., although it will retain a that have a new creative minority stake in the brand. approach and can inspire TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. Both John and Jamey today’s demanding consum- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. Hargreaves have invested in er,” said Jamey Hargreaves. COPYRIGHT ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. the brand. John Hargreaves “We have always been curi- VOLUME 203, NO. 113. FRIDAY, JUNE 1, 2012. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, October and December, and two additional issues in February, is the founder of Matalan, ous and want to be part of March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine the U.K. clothing chain, and things that can break new Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Jamey Hargreaves is chair- ground. I’m impressed by Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at man of the London fashion the way Johan Lindeberg New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses house Julien Macdonald. has created an attractive to P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S “I’m grateful for the international brand with WEAR DAILY, P. O . Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, support we received from a great foundation in New call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent Kellwood in the early stage of York City. We look forward label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless developing my vision,” said to partnering with Johan to we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on Lindeberg. “With this new in- Stella Schnabel photographed by Johan Lindeberg achieve significant success all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all dependent structure together in the years ahead.” editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. for BLK DNM’S upcoming wild poster campaign. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For all request for reprints with the Hargreaves family, we Lindeberg told WWD that of articles please contact The YGS Group at [email protected], or call 800-501-9571. Visit us online at will focus on taking the brand to a new level. I’m im- he took this independent step because he wants www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that pressed by the Hargreaves’ entrepreneurial achieve- to be involved with BLK DNM for the long term. we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at ments and trust their understanding of the BLK DNM “I investigated a lot of different alternatives and I P. O . Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED concept. They recognize the opportunity in what I con- met the Hargreaves through mutual friends,” said ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER sider to be the most important project of my career.” Lindeberg. Lindeberg declined to say how much UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR BLK DNM (pronounced Black Denim) was money the Hargreaves invested in the company or DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A launched in February 2011 as an online business. what percentage they will own. — LISA LOCKWOOD SELF-ADDRESSED STAMPED ENVELOPE. WWD FRIDAY, JUNE 1, 2012 3 WWD.COM Window-Watching at Barneys Those who like a liTTle fashion with their ect, Roitfeld validated the store’s new management. art and a little art with their fashion will find them- “everything was about, ‘what’s Carine going to do selves in fusion heaven starting tonight when (if next?’….especially at that moment in time, it was installation continues as planned) the curtain rises obviously a very important commission.” on the new windows at the Madison avenue flag- Captivating — absolutely. But if one assumes a ship of Barneys new York. store window has two primary purposes — one, an nine months in the making, the installation marks essential statement of self, and two, a calling card a collaboration between the store and the athens- to curious, possibly uninformed passersby, on the based Deste foundation for Contemporary art, latter, the windows might be deemed intimidating. founded and run by the renowned art collector Dakis inside fashion, Roitfeld is a rock star. on the out- Joannou. The store’s press materials call the windows, side, she’s no Rachel Zoe on the recognition meter. on view through July 4, a “public art event in new not a problem, according to lee. he notes that York City,” to be feted Tuesday night with a big party the Roitfeld windows — and most others — tie back at the store, including a performance by John Bock. into a larger program of marketing. Roitfeld did a The effort is audacious and massive — and very straightforward though arresting shoot with Mario much in keeping with the creative ethos of the sorrenti for a mailer, and all of the windows have a store’s uberadventurous creative director, Dennis related web video. “These videos reach millions of freedman. it is also conspicuously devoid of merch, people, far more than the windows,” he says. a fact that Barneys ceo Mark lee insists is not in Provocation via window display is hardly a new conflict with the retailer’s primary mission: the concept at Barneys. Ye t the Deste installation will transfer at a healthy profit of fabulous high-end likely highlight the visually creative point of depar- discretionary goods from the store to consumers ture between Barneys’ former regime, or regimes, around the world. “The windows,” lee offers, “are and lee’s. Beginning in 1986 and until freedman’s one of many touch points that communicate some- arrival, Barneys’ creative direction was spear- thing about the Barneys brand…together with adver- headed by the brilliant simon Doonan, who is now tising and the web site and all the digital communi- ambassador at large. Doonan’s ability to capture cation and content we create, and events and p.r.” the cultural moment, whether amusing or sober, in The Deste windows, he adds, are timed perfectly to fanciful, over-the-top vignettes, made him a star and make a major cultural statement when Barneys and Barneys’ windows legendary. “simon put condoms every other store in new York is on sale. on the Christmas tree,” lee recalls of a Doonan for some time, fashion, particularly numerous shocker about 25 years ago, when Barneys was still luxury houses, has been obsessed with flaunting on 17th street. “That was a big political statement at art-world relationships. The houses collaborate. the time of aCT UP and the beginning of the aiDs They commission. They sponsor. They award priz- crisis. That was definitely not for everyone. all the es. They set up fancy booths at art fairs around different shades of surprise and wit and humor have the world. The inference is that art elevates fash- always been there. i just think it’s always fluctuating ion, and from the other side, fashion popularizes and moving and we’re part of an arc of that history.” art. Ye t a stroll past the vast majority of Most recently, Doonan’s windows designer shops indicates that while the seemed wittier than they were con- view may be creative, artistry seldom troversial, probably because over the muscles in on the merch. The approach years, his personal style that dominated behind the upcoming Barneys windows the installations — exuberant, irrever- From the Deste installation, Juergen Teller’s stems from a place purer and more gen- ent, kitsch bordering on camp — had be- 15-foot image of Yves Saint Laurent. uinely daring than obvious cross-mar- come so well known. keting. They are, as pitched, a public art freedman’s approach is more about event in new York City, the subject of collaboration, whether with artists, when which happens to be fashion. circumstances make sense, or designers. several years ago, Joannou started his windows feel more high-minded, lay- a project that would consider the role ering drama on an artfully cerebral base. of fashion in the greater culture. each Bridget Foley ’s “we’ve done a room made entirely out of year since 2007, he has asked an artist Diary hair, a chrome-plated wall of exploding to select five fashion items representa- bricks, and now, a fifteen-foot-high image tive of that year and build an art piece of Yves saint laurent by Juergen Teller. around those pieces. Joannou then purchases in every case, the key is capturing the dramatic mo- the fashion items for his collection. M/M partners ment. it can be theatrical, it can witty, it can be sur- Michael amzalag and Mathias augustyniak initi- real, but above all, it must be dramatic,” freedman ated the project, assembling, among other items, says. which is not to say they lack humor or broad a Balenciaga shoe and Marc Jacobs hat, and doing appeal. a recent accessories-centric installation paintings of each on enamel plates. subsequently, was based on the notion of perpetual motion. one Juergen Teller did a series of large photographs, window featured 100 Chinese luck dolls, all mov- one taken from a 2000 photo of Yves saint laurent, ing, as a backdrop to a lineup of Yves saint laurent who had just died. helmut lang compiled Michelle shoes; another lined up about as many digital clocks, obama’s azzedine alaïa belt and a dress owned by their numbers matching the blue of a Prada shoe. louise Bourgeois, and connected them to his full- (amusing random factoid: This window caught the size resin replica of fashion-show chairs in a piece eye of pedestrian Jerry lewis, yes, that Jerry lewis, that addresses, freedman says, “the culture and who called to inquire about the clocks. Guess who hierarchy of the fashion show front row.” Patrizia now owns more digital clocks than one person could Cavalli wrote poems about a Viktor & Rolf dress, a ever need?) as for the most talked-about window so McQueen shoe and three other pieces. This year, the far: from last holiday’s Gaga’s workshop extrava- filmmaker athina Rachel Tsangari shot an original ganza, Bob Racine’s extraordinary Gaga’s workshop, film with five actresses, including Clémence Poésy, made entirely of hair. From Gaga’s Boudoir, holiday 2011. each wearing a custom look, some made by students. freedman stresses the power and possibility in- she will take the work to the Toronto film festival. herent in collaboration. he runs off a wish list for the freedman and Joannou knew each other through future including andré Bishop (“who are the best w, which published pieces on Deste. (full disclo- young set designers?”) and Maurizio Cattelan. for sure: freedman and i worked together for years at the recent windows celebrating Christian louboutin’s w.) some time ago, the collector told the creative di- 20th anniversary and alber elbaz’s 10th anniversary rector that he would like to show the collection in its at lanvin, he spoke in-depth with the designers to entirety in new York, and asked for museum sugges- make sure the results were something representative tions. lightbulb! Barneys windows! Though it was of their worlds, yet something neither would do on his decided that each artist should reinterpret, rather own. “i always start by asking, ‘forget about clothes. than merely transport, his or her piece. a major, ex- what inspires you?’ with Christian it was that clear tremely complicated project was soon under way. element of danger.” elbaz talked about reflection. i first wanted to talk to lee and freedman about “That’s all i needed,” freedman says. Barneys windows after last fall’s store-wide hom- for his part, lee maintains a healthy push-pull age to Carine Roitfeld, who recently exited french between commercial and creative forces is essential Vogue. The moody windows, which featured a to keeping the customer engaged, and is elemental major video component, were spectacular, portray- to the identity of the store, which opened in 1923. ing Roitfeld in an even more stylized version of her “we’re more than just an emporium selling clothes reality — sexy, mysterious, incredibly chic. “That and bags. we’re part of the fiber of the city,” he says. collaboration was about getting to what it is about “we have incredible customers who come from the ibley s Carine, as a woman [that fascinates] — her walk, art world, from the theater world, from all of those om t

her shoes, her eyes. There was a surrealistic aspect. worlds, architects, designers — that’s a big part of

by There was a dangerous aspect. it grabbed your at- our customer base. To have that communication with From Moving Part Machines, the Prada window, March 2012. tention,” freedman explains. he implies that by our customer base and with and for the city is part of

Photos agreeing to make Barneys her first post-Vogue proj- our uniqueness. it’s part of our advantage.”

w01a003a;4.indd 3 5/31/12 8:24 PM 05312012202543 4 WWD FRIDAY, JUNE 1, 2012 WWD.COM A Talbots store. Moms Help Boost May Sales

By SHARON EDELSON MAY COMPARABLE SALES MOST U.S. RETAILERS posted modest comp-store sales gains in May, and they may have mom to thank. MAY 2012 MAY 2011 APRIL 2012 MARCH 2012 Retail analysts attributed the sales growth to the % CHANGE % CHANGE % CHANGE % CHANGE pre-Mother’s Day shopping falling later in May this DEPARTMENT STORES year compared with early May last year. “The Mother’s Day shift was more impact- BON-TON 1.5 -2.3 -5.0 -0.1 ful,” said Richard Jaffe, a retail analyst at Stifel KOHL’S -4.2 0.8 -3.5 3.6 Sycamore Partners Nicolaus, adding that the calendar change likely MACY’S 4.2 7.4 1.2 7.3 snatched sales from April. Gap Inc. posted a 2 percent increase in compa- NORDSTROM 5.3 7.4 7.1 8.6 To Acquire Talbots rable-store sales, shy of the 3.1 percent expected, as SAKS 4.0 20.2 2.0 6.3 respective increases of 8 percent, 6 percent and 1 STAGE STORES 8.0 0.0 -1.0 4.7 {Continued from page one} percent at Banana Republic, Gap North America and a sector — missy — that has been squeezed by demo- AVERAGE 3.1 5.6 0.1 5.1 international only partially offset a 1 percent decline : graphics, changing fashion tastes and the overall economy. at its largest business unit, Old Navy North America. Still, the Talbots buyout is the latest deal in a wave Janet Kloppenburg, president of JJK Research, SPECIALTY CHAINS of mergers and acquisitions activity in the fashion said the decline at Old Navy was due to shifting an and luxury sector. Morton A. Pierce, partner in the immensely popular and traffic-driving $1 flip-flop BANANA REPUBLIC 8.0 -6.0 1.0 5.0 mergers and acquisitions practice group at White & promotion out of May and into June. “There was no BATH & BODY WORKS 7.0 4.0 4.0 6.0 Case, which represented Talbots, said, “Activity has incremental demand strength there to compensate BUCKLE 0.2 8.8 1.0 6.4 picked up.…Both the strategic and the financial buy- for operational changes,” she said. ers are out there [looking to do deals].” CATO 3.0 -3.0 -6.0 5.0 Macy’s Inc.’s 4.2 percent increase, reported The bubbling M&A activity is in contrast to what Wednesday, exceeded estimates. The Bon-Ton Stores GAP (U.S. STORES) 6.0 -4.0 4.0 9.0 could be the beginning of a slowdown in initial public Inc. reported a 1.5 percent gain, helped by improve- OLD NAVY -1.0 -1.0 -6.0 11.0 offerings in the sector, given Wednesday’s announce- ments in moderate ready-to-wear. “We are pleased ment from Graff Diamonds Corp. that it was cancelling PERFUMANIA -0.8 11.8 -1.4 0.2 with our May sales performance as compelling new its planned IPO in Hong Kong. Analysts in Hong Kong offerings and refinements in our marketing efforts VICTORIA’S SECRET 9.0 8.0 8.0 10.0 said that Graff ’s decision was a result of the lukewarm yielded positive results,” said Brendan Hoffman, WET SEAL -8.8 2.9 -9.6 -7.8 reaction to the IPO given the price of its shares. president and chief executive officer, who touted ZUMIEZ 13.7 7.8 10.1 14.1 In just the last three weeks of May, there were double-digit increases in e-commerce as well. four brands on the market in the U.S.: Nike Inc. on Target Corp. was ahead of forecasts with a 4.4 per- AVERAGE: 3.6 2.9 0.5 5.9 Thursday said it was divesting Cole Haan and Umbro. cent increase, while Stein Mart Inc. posted a 3.1 per- Earlier this month, St. John was put on the block by cent gain versus estimates of a 0.5 percent increase. MASS MERCHANTS Vestar Capital Partners, while Kellwood Co., owned by “It has been nearly six years since we had a monthly Sun Capital Partners, said it was in discussions with increase greater than this without the addition of a sig- COSTCO * 6.0 7.0 5.0 6.0 Johan Lindeberg to transfer partial ownership of BLK nificant promotional event or impact from a calendar ROSS STORES 8.0 4.0 7.0 10.0 DNM. That deal was also completed Thursday. shift,” said Jay Stein, interim ceo of the company. STEIN MART 3.1 0.7 -1.6 -0.3 Globally, there were 62 deals disclosed in the appar- “Retailers continue to position compelling inven- el and footwear retail sector between Jan. 1 and May tory at compelling prices,” said Joel T. Bines, manag- TARGET 4.4 2.8 1.1 7.3 2, carrying a total value of $3.66 billion, according to ing director at Alix Partners. TJX COS. 8.0 2.0 6.0 10.0 Dealogic. That’s about the same number of deals seen Limited Brands Inc. continued to outperform ex- AVERAGE: 5.9 3.3 3.5 6.6 a year earlier, but just over twice the value. pectations with a 6 percent increase that surpassed In the month of May alone, no less than 18 deals the 4.7 percent expected. Victoria’s Secret and Bath were revealed. & Body Works comped up 9 percent and 7 percent, TALLY: Eight of those transactions were overseas: U.K.- respectively, beating forecasts for gains of 5.8 percent UP 17 15 13 18 based retailer Booker said it was acquiring Makro; and 4.3 percent. luxury Swedish shirt brand Eton sold a 65 per- FLAT 0 1 0 0 Nordstrom Inc. and Saks Inc. reported better- cent stake to private equity firm Litorina IV; Go to than-expected increases of 5.3 percent and 4 per- DOWN 4 5 8 3 Enterprise Sarl took a majority stake in Vionnet cent, respectively. TOTAL 21 21 21 21 SpA; Lion Capital agreed to invest in the French Bines said there could be headwinds for luxury re- eyewear retailer Alain Afflelou; Turkish footwear tailers, since much of their business is derived from giant Ziylan Group agreed to purchase Italian shoe tourists. The euro on Thursday traded at $1.23 against SOURCE: COMPANY REPORTS * EXCLUDES FUEL SALES. firm Lumberjack; YGM Trading inked a deal to buy the dollar, a 14.3 percent decline since May of last year. Aquascutum Ltd.; Delta Galil Industries Ltd. agreed “Given what’s going on externally, May’s performance to acquire Schiesser AG, and Advent International seemed even more resilient,” said Arnold Aronson, sold French discounter Stokomani to private equity managing director of retail strategy at Kurt Salmon. MAY COMP CRUX firm Sagard and Stokomani’s management team. “We’re facing recurring and embedded unemployment In the U.S., 10 transactions were unveiled: Macy’s problems, still paying a lot for gas and the housing mar- Inc., along with others, invested $15 million to ac- ket hasn’t stabilized yet. When you look at the whole pic- MAY IN THE MIDDLE: Sales in March were helped by an quire a minority stake in Chinese-based e-commerce ture, the customer is still proving resilient.” early Easter and an early spring, and retailers gave back company VIP Store Co. Ltd.; online jewelry retailer But Eric Beder, analyst at Brean Murray, Carret & those benefits — and perhaps a bit more — in a less Bidz.com will be acquired by Glendon Group Inc.; Co., had a darker assessment of the month. “We might seasonal, less holiday-laden April. May required no such members-only online shopping program ShopRunner be coming back to a period where the consumer is explanation. Same-store sales advanced an average of acquired Boston-based PickupZone; beach-culture afraid to shop. There’s still a fashion-driven customer, 3.9 percent, comfortably above the 3.6 percent estimate inspired brand Tavik was purchased by Incipio but the day-to-day customer is taking a pause.” provided by Thomson Reuters, and also fit comfortably Technologies Inc.; Gildan Activewear said it would buy Stage Stores Inc. reported an 8 percent comp in- in between the March and April results. All three retail Anvil Holdings Inc.; the rights to the Fred Segal brand crease, well above the 2.2 percent anticipated gain, categories tracked by WWD had average gains that fell in were sold to Sandow Media; Ascena Retail Group Inc. aided by increases in all lines of business. between the March and April results, and two-thirds of agreed to acquire Charming Shoppes Inc.; Marchon On-trend teen retailers were in short supply, with the brands covered by WWD had results that either fell in Eyewear Inc. acquired sports performance eyewear Zumiez the lone member of the group to perform well. between the two prior months or, in the case of Costco, brand Dragon Alliance, and Collective Brands Inc. Zumiez logged a 13.7 percent hike, more than twice matched one of them. reached a $2 billion deal to split up and sell its opera- the expected uptick. The Buckle Inc.’s 0.2 percent tions to Wolverine World Wide Inc. and two private eq- increase fell short of the 3.3 percent increase antici- ON THE BEAT: More than two-thirds of stores reporting uity firms, Blum Capital and Golden Gate Capital. pated, and The Wet Seal Inc.’s decrease of 8.8 percent Thursday beat estimates, with the largest upside The 10th U.S. deal was the acquisition of Prince for the month was worse than the 8.3 percent drop es- “surprise” coming from teen retailer Zumiez Inc., which Sports by Authentic Brands Group as part of Prince’s timated. Wet Seal’s flagship unit was down 8.7 percent saw comps rise 13.7 percent versus an estimate of 6.6 prepackaged bankruptcy filing in a Delaware bank- for the month and Arden B. was off 9.3 percent, while percent. Off-pricers The TJX Cos. Inc. and Ross Stores ruptcy court. e-commerce revenues declined 5 percent. Inc. duplicated each other, rising 8 percent versus In the special situations category, one of the more “If you’re an underperforming retailer right now, expectations of 5.3 percent gains, while Stage Stores Inc. active financial buyers has been Sun European it’s much more difficult to improve performance be- (up 8 percent versus an anticipated 2.2 percent pickup) Partners, the European adviser of U.S. private equity cause consumers are much more willing to shift,” and Stein Mart Inc. (3.1 percent versus the 0.5 percent firm Sun Capital Partners, which earlier this year ac- said Bines. “Market share is moving and once shares boost expected) made less customary appearances on quired Bonmarché. move they tend to be fairly sticky.” the list of top “beats.” The Buckle Inc. produced a rare Given the work needed to be done at Talbots, Kohl’s Corp., which was expecting to report a disappointment, rising just 0.2 percent against the Sycamore seems poised to join the ranks of Sun and 1.2 percent drop, ended up posting a 4.2 percent expected 3.3 percent pop. Versa Capital in the top ranks of the specialized turn- decline. Kevin Mansell, the midtier retailer’s ceo, around sphere. Versa in April acquired bankrupt projected a “modestly negative” comp result for the MIDYEAR CHALLENGE: Stores will be harder pressed to United Retail, the operator of the Avenue retail chain. second quarter. He cited strength in accessories and make their numbers this month. Last June, the average Sycamore has reportedly closed on $600 million in said that men’s and women’s apparel were better comp increased 7 percent, the second-strongest month commitments for its first fund-raising effort, with a than the company average.” of the year behind April. Thomson pegged year-to-date target of $750 million. Its first deal in November was Kloppenburg said Kohl’s has been trying to move comps as ahead 4.8 percent, within the range of 3 to 5 a 51 percent stake in Limited Brands Inc.’s sourcing to an everyday low price strategy and trying to bring percent recorded throughout 2011. — ARNOLD J. KARR division, Mast Global. The private equity firm is ex- more brands into its assortment. “Kohl’s made it pected to remain on the prowl for more deals in the clear that it was underinventoried,” added Jaffe. retail and fashion space. FASHION’S MAINEVENT

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Photos: Diane von Furstenberg, Lady Gaga, Ashley Olsen and Mary-Kate Olsen by Neil Rasmus/BFAnyc.com, Marc Jacobs and Soﬁ a Coppola, Jack McCollough and Lazaro Hernandez by Andrew H. Walker/Getty Images, Gwyneth Paltrow and Michael Kors by Sherly Rabbani/Patrick McMullan, Kate Moss by Rabbani and Solimene Photography, Tory Burch by Larry Busacca/Getty Images, Kanye West by Joe Schildhorn/BFAnyc.com, Jessica Alba by Clint Spaulding/Patrick McMullan 6 WWD FRIDAY, JUNE 1, 2012 WWD.COM

WWD Beauty SuMMIt Navigating the New Universe Jean-Paul agon of L’Oréal started three days of discussion, debate and a bit of controversy over the world that beauty is pioneering and the strange new breed of consumers found there. “they are totally diverse,” he said. “they are perfectly informed. they are hard to capture. they are increasingly demanding, but this new consumer is very creative.”

Jean-Paul Agon DeMSey: ‘HOPeS Of tOMOrrOW’ For more From THe SUmmIT, See In order for companies to lead tomor- sion advertising, print advertising or great row, their executives have to embrace aspi- editorial or in-store experience.” WWD.com/ ration and go where customers are leading demsey used MAC Cosmetics as an beauty-industry-news. them, John demsey emphasized. example. “When I first started at MAC in “our future relies on building on the pio- 1998, the company didn’t have the cash neering aspects of what was done yesterday, flow to run any advertising, but what they the realities of today and the aspirational did have [was] the insight to hire makeup hopes of tomorrow,” said demsey, group pres- professionals and to establish a powerful ident of the estée Lauder Cos. Inc., speaking core dnA of community and a community at the WWd Ceo Summit here. “Aspiration of artists around the world,” said demsey. is the thing that keeps us going and opens up “That dnA, with its roots in makeup art- even greater potential for the future.” istry, theater and fashion, embracing its To do that successfully, it’s necessary impassioned diversity of all ages, all races, to be aware of how fragmented and fast- all sexes and its sense of community gave changing the worldwide market is and to MAC’s popular culture authenticity.” “read between the Tweets” to find the op- The brand was also quick to embrace portunities, he said. social media. “MAC was able to take a look And aspiration is all about building at subgroups in small communities, em- dreams, said demsey. “Jean-Paul [Agon, brace them and understand the power of aGON’S GaLaCtIC QueSt L’ oréal chairman and chief executive of- small groups working together to become CHAnGeS To the beauty business we localize the formulas. We create ficer] last night referred to the fact that a bigger voice,” he said. “As a result, today have been so earth shattering in tailor-made products. These prod- he believed, as I do, that the beauty indus- MAC has more than 3.2 million Facebook recent years that Jean-Paul Agon, ucts are adapted to different cultures, try is fundamentally different than many fans, over 100,000 Twitter followers and the L’ oréal chairman and chief execu- beauty traditions, lifestyles and pur- consumer product industries in that we YouTube channel passed five million view- tive officer, exclaimed, “Sometimes chasing powers in every part of the actually fulfill women’s aspirations,” said ers in March....This is a brand that evolved it looks like another planet.” world. In fact, universalization is the demsey. “We are in the business of creat- over the course of 14 years from $100 mil- Indeed, today’s beauty consumers new approach to globalization.” ing products, creating concepts, creating lion wholesale business to what industry can sometime seem like Martians. Universalization is driving the experiences that make people feel better sources claim is almost $2 billion today.” They “are very different from what cosmetics industry toward better and make them experience intangible feel- These days, he said, marketers face chal- they used to be,” Agon said during his science, he said, explaining each ings of happiness and acceptance.” lenges from a whole new range of distri- opening-night keynote speech at the country represents a new technolog- However, unlike past decades, the in- bution channels, from specialty stores to WWd Ceo Beauty Summit here. “They ical challenge to overcome. Further, dustry can’t expect to dictate those dreams Sephora, e-commerce, QVC and curated sales are totally diverse. They are perfectly L’ oréal has initiated “reverse innova- to consumers, he said. “Instead we must sites. “Content lives absolutely everywhere, informed. They are hard to capture. tion,” where some local creations — discern and define them on a regionally from bloggers to YouTube to comments on a They’re increasingly demanding, criti- such as Maybelline BB Cream — are cal, combative, but this new consumer now rolled out worldwide. That’s led is also very creative, involved — even to a different organization structure. John Demsey to the point of making suggestions “It’s a kind of new hybrid con- about products or advertising cam- cept, a model of a new kind, which paigns. The consumer, in fact, has be- combines a strong central nervous come the best prescriber and the best system with a strategic vision but spokesperson for our brands.” also with several local hubs, both in Agon pointed to major shifts: The research and marketing,” said Agon. consumer has become universal, dig- due to the digital revolution, con- ital and socially responsible. sumers are changing how they re- “These three fundamental chang- search and buy products. es are crucial for our industry, but at “Beauty is the most hotly dis- the same time they create tremen- cussed topic on social networks,” dous opportunities and are also com- said Agon. “The huge popularity of pletely revolutionizing the way we these networks opens new oppor- work,” he said. “They make, I think, tunities for interaction and conver- our industry more interesting than sation between consumers and our ever. They are inspiring us.” brands. Seventy-eight percent of Hundreds of millions of new con- beauty sales are directly influenced sumers in new economies are now by the Internet.” able to buy modern beauty products, And increasingly, transactions and Agon feels such markets will occur in the digital space. “digital surpass mature markets sizewise in tools allow us to help our consumers three years. Already, a trio of them and to offer them personalized one-to- — China, Brazil and russia — are in one service, so that we can increase the top five worldwide. the quality and perceived value of “So the beauty needs and expecta- using our products,” said Agon. tions are also becoming increasingly He envisaged a Shazam-like ser- diverse,” said Agon. “Chinese, Indians, vice for beauty, where smartphones local, relevant basis,” demsey said. Facebook page. new platforms like Pinterest Brazilians, russians [and] Indonesians could decode what a person on the To keep ahead of the trends, demsey and Sparkrebel give everyone the power to will form the majority of our custom- street is wearing in terms of makeup suggests immersion in local markets when- have style authority....And it has become such ers, leading to an extension and diver- or skin care, for example. ever possible. In his global travels, he al- a mash-up, it’s even more challenging than sification of beauty needs.” “digital and physical distribution ways procures “a stack of high-end inter- ever for global marketers,” said demsey. demand for products for colored channels will nourish each other, in- national fashion magazines, a stack of local The key to fueling momentum for tomorrow skin, darker hair and hot and humid creasing purchasing opportunities,” fashion magazines, a stack of paparazzi rag is combining the tapped-in storytelling with zones are on the upswing, for in- he said, adding, “I think that digitali- sheets and I turn on the equivalent of MTV. established marketing principles and a sound stance. At the same time, it’s key for zation gives the power back to ideas And I sit for a couple of hours and just try to business model and business strategy, he said. companies to pay attention to coun- and boosts creativity.” absorb what’s going on and then I go off to “We have seen no singular road map to suc- tries’ specific beauty customs and Meanwhile, Agon said consumers my market visit. It’s important to put your- cess,” said demsey. “our challenge is to keep cultures, such as whitening creams are increasingly responsible citizens. self in the context of where you are because [the beauty aspiration] interesting along the in China and kajal in India. “expectations about large compa- those are the people who buy our products.” way, keep it relevant, to keep delivering expe- “All these traditions are invalu- nies are becoming more demanding, Growth lies within the aspirations of riences and to make people feel special and to able sources of inspirations for all with people believing [firms] should emerging populations and communities tap into their deepest desires. And if we want markets of the world,” said Agon. invest more in sustainability, share around the world, as in russia, China, Brazil to do that, we just can’t look at the beauty busi- To wit: L’oréal has developed a [their] prosperity and create value and India, he said. As well, he said, “we’re ness. We can’t stand apart or above or outside. strategy of “universalization.” for society as a whole,” he explained. using a powerful combination of our brand’s We need to be plugged in, in real life, with real “Beauty for everyone is primarily “We have to share our prosperity and inherent dnA and our inherent ability to people and popular culture, which holds the a matter of beauty for each individu- our development with the communi- tell great stories and to harness the aspira- key to my belief that modern-day aspiration is al,” said Agon. “With universalization, ties around us.” tions of today’s consumers to drive our suc- the driver of our future growth.” we certainly globalize our brand, but — JeNNifer Weil cess, whether it be online, through televi- — Julie NaughtoN

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WWD BEAUTY SUMMIT Alan Ennis America, and growing at a more rapid E. Scott clip. Latin America and the Middle Beattie East also promise ample opportunity for growth, he noted. And while the industry’s top 10 brands — which include Elizabeth Arden — wield a great power, Beattie said that collectively they represent less than 25 percent of the market share. The industry is fragmented, he noted, leaving an opening for new brands armed with innovation to emerge and gain traction. Consumers, too, are raising their profile in the beauty industry. “There’s no cookie-cutter formula for someone entering into your brand. And as ENNIS ON ROAD a result the content has shifted from being flat — that print ad, that TV ad TO REVIVING ICON THE POINT-OF-SALE EVOLUTION — and strictly the domain of the brand owner, to being co-created by the con- REVLON INC. is fit and ready to return to its lead- WHEN IT COMES to building a beau- single one of us,” he said. sumer, user-generated. The content ership beauty position, declared company presi- ty brand, technology has flattened the “There’s multiple entry points. needs to be active and engaged and it dent and chief executive officer Alan Ennis. playing field, said E. Scott Beattie, Once someone is engaged with your needs to tell a story,” he said. But don’t expect Revlon to rely solely on existing chairman, president and chief execu- brand, instead of having just a couple The involvement of the consumer marketing tools or return to the fragrance category tive officer of Elizabeth Arden Inc. of opportunities to buy your products, requires a digital strategy, one that in a big way. Instead, Ennis has a laserlike focus on He reminded that, in the past, the there’s dozens of choices.” Beattie said needs to keep pace Revlon’s current strengths. largest, most formidable beauty brands As Beattie sees it, technology’s with the short attention span of the “I think over the years, Revlon got lost in this got the largest department store coun- increasing role in the retail space user. For the launch of Taylor Swift’s space where it lost focus on the goal,” said Ennis, ter, or in mass, the most shelf space. also provides an entry point to more scent Wonderstruck, the company adding that through 2007, there were about 15 years “Today, the retail experience and markets around the globe. “There tapped into the singer’s network of negative cash flow at the company. “They were try- experiencing the brand is a fluid are many markets that don’t have a of 24 million Facebook fans. But ing to drive the brand, trying to drive brand equity, concept,” he said, calling it “a point retail infrastructure — India, China Beattie clarified, “If we just cre- trying to spend behind the brand, but at the same of sale evolution.” and Brazil. How do people buy their ated one piece of content for those time they weren’t minding the shop. And so the clas- As Beattie pointed out, the point products? They buy them in travel re- Facebook fans, they’ll look at it once sic example is while expanding the empire in Rome, of sale has moved beyond the coun- tail when they travel, they buy them and move on. There needs to be a the administration was collapsing.” ter or shelf and landed on the tele- in digital environments,”said Beattie. constant engagement. That creates a A turnaround started around 2008, he said, with a vision screens (à la HSN) and on Tapping into these markets, digi- whole new challenge in terms of how disciplined approach — which included a 20 percent iPads via Amazon. “The Internet tally or otherwise, presents beauty you develop content in this world.” reduction in head count — and a fact-based strategy and social media together have de- brands with a tremendous opportu- Now, the true brand influencer is for spending. “And Revlon has stuck to its guns. We fined the concept of point of sale nity. As Beattie noted, the Asia-Pacific the one with the most captive audi- have kept our costs down. We now have a 25 percent and dramatically impacted every market is nearly twice the size of North ence online. — MOLLY PRIOR operating income margin. And it may not be a big number for some of the big boys and girls in the room, but over the last four years, we’ve generated $250 mil- THE ART OF STORYTELLING Marc Puig lion of positive cash flow. So after 15 years of burning cash, we generated positive cash flow.” WHEN THE GOING got tough for set its sights on lassoing 10 percent of Simultaneously, Revlon put muscle into its core Puig, the 98-year-old family-owned the prestige fragrance industry’s mar- brands. Revlon has a three-year rolling portfolio Spanish fragrance and fashion ket share, the critical mass it felt nec- strategy across all segments identifying launches business dug deep and mined its essary for survival. through the first quarter of 2015. With those aspects strength: storytelling. “So how do you make it happen?” running smoothly, the next step was people. In 2009, “Our company grew a lot during the asked Puig. “I think the answer has to Revlon started rebuilding its staff, including what Nineties through acquisitions, mainly, do with passion and storytelling.” he called a “formidable” team with Julia Goldin as and we reached the beginning of this He said the beauty industry in gen- the chief marketing officer and a group who under- century with declining sales and, most eral and Puig in particular had failed at stands the new corporate culture. worrisome, deteriorating profitability being able to excite the consumer. With its company ready to do business, Ennis to the point that in 2004 we had operat- “For fear of failure for many years, described an upbeat domestic market as well as ing losses,” said Marc Puig, chairman we had been just bringing ‘me-too’ wants, so she jumps out a window to opportunities overseas. While China is a com- and chief executive officer. “We didn’t products,” he said. So the strategy was celebrate with her friends. plex market, he does see potential there, but also meet the governance of our debt, the to again excite consumers by coming “We tried to really capture the story throughout all of Asia. However, he hopes to see auditors didn’t want to sign the num- up with stories to tell them. in the elements of the mix.” more manufacturing return to America, especially bers. Things didn’t look good.” A case in point was the advertis- The storytelling strategy is bear- as regulations become standard across the indus- Puig said the company did some ing film for Valentina, the Valentino ing fruit. Over the past eight years, tr y. “We are all striving to produce high-quality serious soul-searching to identify its women’s scent Puig launched last Puig has approximately doubled products at affordable prices that are safe for the raison d’être. year in Europe and the Middle East. its sales. (The company closed 2011 consumer and that work. The issue with regulation “We were good at building brands, After signing a fragrance license with with revenues up 12 percent on-year is that it’s disintegrated, that there is no common achieving the image of a brand the Italian fashion label, Puig took to to 1.3 billion euros, or $1.87 billion at set of standards around the world. There is no com- through fashion, and we were at our discontinuing all of Valentino’s for- average exchange.) mon set of standards in the U.S. There is a real op- best when translating that same image mer scents to “launch something that Between 2007 and 2011, Puig grew portunity to harmonize what’s considered to be the — whether ours or from somebody else is different, with a story that can be its worldwide prestige fragrance acceptable regulations,” he said. — in the fragrance world,” he said. attractive,” explained the executive. market share from 5.1 percent to 7.6 Grabbing the consumer in today’s multichannel At the time, Puig was involved in For the Valentina campaign, the percent, making it rank seventh, ac- world is challenging and Ennis noted that “simply run- many beauty product categories and concept was to recount the story of cording to its estimates. ning a TV campaign during daytime TV” doesn’t work realized it had to cherry-pick what it a young woman from an aristocratic “This puts us on a good track to as well as it once did. Revlon increased its spending was good at and craft an organization Italian family whose parents are hopefully reach 10 percent in 2014, behind digital platforms over the last four years, and to best support it. The company also about to throw a party for her in their which is the year of our centennial,” digital represents somewhere between 15 and 20 per- honed in on geographic priorities and Roman palazzo. It’s the last thing she said Puig. — JENNIFER WEIL cent of its total media spend. — FAYE BROOKMAN

BUILDING A CHINESE BRAND AT HOME ing upward to target the upscale, af- still not ready to accept that sort of fluent consumers,” explained Wang. prestige brand made by a domestic SEVENTEEN YEARS AGO, an ex- The brand has since been built into Herbalist opened its debut store company, said Wang, adding, “This Zhuo (Joe) Wang ecutive from an international com- a powerhouse based on a “three ‘i’ in Shanghai in 1998, and practically perception creates huge hardships pany paid a visit to Shanghai Jahwa motto” — insights (“understanding no sales were rung up the first day. for companies like us doing luxury United Co. Ltd. — among China’s your consumers’ needs and want- “We started with stand-alone, goods in China.” oldest and largest cosmetics firms ing to position a brand competitive- exclusive stores — our own stores. Herbalist dreams of being a — and implied its products lacked ly, attractively and successfully”); Why? Because we were forced to do global leader. Four years ago, originality and competitiveness. integration (“making your prod- that. None of the department stores the brand launched in France, The chairman of the board at the ucts, distribution and marketing wanted us to be in them,” he said. through Sephora, and has since time “was so embarrassed that he communication match one another Today Herbalist is in 1,001 entered Holland, Spain, Italy, decided to develop something really and work together”), and insistence doors, including Chinese depart- Poland and Turkey. It’s been reg- special, really different, really im- (“staying the course and avoiding ment stores. The brand is expect- istering 40 percent on-year growth pressive,” recalled Zhuo (Joe) Wang, self-inflicted setback”), said Wang. ed to generate more than $400 mil- in Europe, yet considers it a chal- executive vice president of Shanghai The brand was sold with entry-lev- lion in retail sales this year. lenge to create favorable percep- Jahwa, during his speech, which was el prestige positioning from the start. Ye t there’s still some resistance tions in the mind of consumers. peppered with poetry he had trans- “Most local Chinese companies to it domestically. According to a “To Chinese companies, going lated from Chinese into English. are playing the defensive in the recent survey, although an increas- global — especially going to the de- Three years later, Herbalist low and middle ends of the market. ing number of Chinese consumers veloped markets — is really a new (whose name literally means “an There are a few progressive compa- want luxury goods made for them, and daunting task,” said Wang. anthology of 100 herbs”) was born. nies also playing the offensive, mov- 85 percent of such consumers are — J.W. WWD FRIDAY, JUNE 1, 2012 9 WWD.COM

RUBIN TOUTS Chuck Rubin titlement to anything else — didn’t work, Iman or at least it didn’t work for me.” Rubin’s wake-up call prompted him MERITOCRACY to open the books and study diligently, which ultimately landed him on the CHUCK RUBIN is a believer in democ- dean’s list. “I learned that entitlement racy — just not in corporate America. doesn’t buy you much, but working hard “The best path forward is a meritocra- sure does.” cy...an environment where all people are He acknowledged that implementing provided the opportunity to contribute. a meritocracy isn’t always the smooth- But only those who actually do contribute est path. It’s one that requires honesty are rewarded — not just financially — but and tough decisions. “Nobody likes to with a seat at the table of leadership,” tell [people] that their idea isn’t good said Rubin, president and chief executive enough. Being direct is sometimes the officer of Ulta Beauty. In his view, consen- toughest thing to do, but it’s also dif- sus building and popularity contests are ficult for a leader to acknowledge that FRANK TALK best left to the upcoming general elec- given opportunities to grow, to earn more, they are wrong or that their idea is not tion. He also declared that the era of the to realize their potential.” the best,” he said. “I would suggest we FROM IMAN “dictatorial, iconic ceo leading corporate Rubin said he learned this lesson be direct and we have to tell people America” has come to an end. early on, while he was a freshman in when they struggle, we have to tell peo- IMAN HAS a major message she’d like to In his view, good ideas, hard work college. He assumed he’d earn stellar ple when they fail, but we also have to deliver to the nation’s mass-market chan- and measured risk taking are what pro- grades with little effort, as he had done tell people when they succeed and en- nels: ethnic beauty can’t be confined to pel executives up the corporate ladder. in high school. He quickly learned he courage them to do that.” part of a cosmetics wall that changes in- “We need to challenge people and pro- couldn’t. “I almost flunked out of col- Rubin sees new challenges as a moti- frequently, nor confined to a handful of vide an environment that has some com- lege,” he said bluntly. “I realized that vational tool. “I don’t believe people shy doors in urban areas. ponents of tough love,” he said. “Instead good grades didn’t come simply because away from challenges and opportunities It’s a lesson she learned firsthand — as a of reinforcing the idea that everyone is a I showed up. I realized it wasn’t as easy as easily as others might think they do. model who is a woman of color, and then in winner and can share in rewards, we need as every Little Leaguer getting a trophy And I believe we are more likely to keep seeking to place her cosmetics line in mass- to create an environment where meritoc- whether they come in first place or last. people engaged and happy by rewarding market distribution. racy can thrive, where people who con- I realized that ultimately entitlement — hard work and supporting this culture Iman started out in J.C. Penney in 1994, tribute, offer good ideas and execute are be it entitlement to good grades or en- of meritocracy.” — M.P. in 400 doors, building the brand to about $25 million in sales by 1996 and selling in Penney’s and Sephora. After a restructur- wants to own. “What we are trying to [do ing at Penney’s, Iman Cosmetics found it- MASS BEAUTY’S BROADER VIEW is] create an experiential shopping en- self entering the mass channel in 2004 and, vironment. Where else can you go and later that year, inked a distribution deal CREATING ACCESSIBILITY to beauty Boutiques, including the newly opened pick up sushi, get a men’s haircut at Wall with Procter & Gamble Co. products is a mission of Joe Magnacca, store in Puerto Rico that was already Street, have your scalp analyzed and get Iman quickly learned mass operates dif- president, daily living products and solu- the second-largest door in terms of sales your nails done?” ferently than prestige. “It was this struggle tions at Walgreens. In just a short time, he’s for Mother’s Day — the manicure area Magnacca wants to leverage technol- of trying to find a way to exist in this new helped transform Duane Reade stores in quickly had to be enlarged from four ogy, including the use of systems such as arena that I had no intention from the be- New York, while also influencing a new at- manicure tables to six. Magnacca said EZface in stores and a new computerized ginning to enter anyway,” she said. titude at Walgreens — moving it away from there will be “several hundred” Look system for booking manicures. He’s also Her biggest surprise? “In mass, it’s the image as “your grandmother’s store.” Boutiques over the next few years. pleased with the progress of Drugstore. all on walls, and skin care isn’t marketed By capturing the cachet found in “We are very committed to beauty. com and Beauty.com, which Walgreens with color — and I didn’t understand that European and Canadian pharmacies, We felt it was important to bring beauty acquired two years ago. “Beauty.com was it was if they have 1,000 doors, 200 are for such as Shoppers Drug Mart’s Beauty to her. We believe that she wants to shop incredibly strategic for our overall plat- women of color,” she said, adding that she Boutiques, Magnacca and his team where she wants to shop, when she wants form,” he said, adding that a new look to takes exception with mass retailers allocat- are rewriting the mass-market beauty to shop, how she wants to shop, and that the Web site is forthcoming. “We really ing “for you the doors that they think your rules. First seen in Duane Reade’s Look theme obviously holds even truer today want to serve everyone across all chan- customer is. I mean, I think, personally, if a Boutiques, the concept has evolved in when we talk about online and the online nels. Again, what she wants, when she black woman or a black family or a Latina two years to include services such as experience,” he said. “We have six mil- wants it and where she wants it. And we family is shopping in your pharmacy, in a manicures. Today, there are 40 Look lion customers a day. And we want to give really don’t care if she walks into a store, Walgreens or a Target, she probably would them more reasons to shop our store. Yes, if she orders online, picks up in a store, buy the cosmetics line if it was there.” I need to pick up my script, yes, I need comes into a store and orders online. We Trying to secure that distribution has sushi, yes, I need to go to the beauty area just care that she is satisfied with her been a challenge; while mass retailers sell for my products, including services.” order, because it really is her world, not her brand online, it is in limited store dis- One-on-one consultation is impor- ours. Our job is to serve her the best way tribution. “I approached the players — Wal- tant to Magnacca, and he said Walgreens we can, and the best way may be very dif- Mart, Target, Walgreens — and everybody is working to better train the more than ferent at different times for her.” knew about the brand and how successful 26,000 beauty advisers in the network, with Walgreens focuses on the right mix it was, so everybody said yes to it,” said strategies such as a beauty university. in the right store rather than a cookie- Iman. “But then there was this, ‘Oh we’ll The merging of Duane Reade and cutter approach. He admitted it is hard test it.’ Like I just started, like there was no Walgreens [Walgreens purchased Duane work — more customization, market tests customer base for it. I tried to make them Reade two years ago] resulted in a stron- and layers of planograms — but a strategy understand that I didn’t want to be tested ger chain benefiting from each other’s that pays off. He said, “We make sure that in the whole of the U.S. — especially where strengths — Walgreens from Duane every [stockkeeping unit] is optimized on a we were very strong and where we were Reade’s front-end power, and Duane per-door basis, as opposed to on a nation- already at J.C. Penney’s, because those cus- Joe Magnacca Reade from Walgreens’ rich pharmacy al scale. And that is a really big change tomers would need to be serviced.” operation. Beauty is a category Walgreens for the Walgreens organization.” — F.B. Overall, she said, “It was a no-go. They wanted me to be placed at the back, which they considered, like it is, for the ethnic section, which I was totally against it for no TARGET’S TAKE ON PARTNERSHIP other reason but ’cause also I never consid- Jose Barra ered myself an ethnic brand.” FOR AS MUCH as Target is touted for its a visionary idea to continuously deliver “I honestly can tell you that the people designer partnerships — ranging from the most innovative, affordable beauty are desperately looking for brands that Jason Wu to Proenza Schouler — beauty products to a wider audience without they can believe in right here, right here brands have been slow to come on board, compromising professional quality. at home,” Iman said to applause from the declared Jose Barra, senior vice presi- Sonia’s brand remains a cornerstone of room, adding that a large percentage of her dent of health care and beauty at Target. our beauty business and it continues to current business is done online. “There is Over the last decade, Target has struck deliver a prestige, one-of-a-kind collec- growth right here, if only the retailers un- more than 80 limited-time partner- tion that’s only available at Target.” derstood it. I have customers from all over ships, with only two — namely Calypso Target has a fairly enticing track re- the world that look for the products, but I St. Barth and Missoni — encompassing cord when it comes to designer partner- also have customers in the U.S. that can’t beauty products as well, he said. ships. Barra noted Missoni marked its find the product in a store near them.” “The biggest challenge is getting some largest exclusive designer collection to In Barra’s view, the equity of a brand is One particular opportunity for growth of your brands or some of your stores to date. It included 400 items ranging from not defined by channel — as has been the is foundation, a challenging category for think about Target differently. There is beauty products to scarves, and even in- practice in the past. many women of color, and a category still that perception that Target is the big cluded a bicycle. “The six-week collection This year, Target expanded its partner- that accounts for 75 percent of her over- box that is going to squish about every- sold out in six hours,” said Barra. ship strategy to include smaller retailers all sales, she said. thing that gets in its way,” said Barra. “We “Exclusive partnerships, like the ones for a concept it calls The Shops. The first “Last year, I decided to create a liquid provide a great infrastructure and we have we had with Missoni and Jason Wu, offer phase, launched earlier this month, in- foundation, which I have been told numer- the ability to scale it up very quickly. And our designer partners the perfect platform cluded a body care collection created in ous times by the retailers, ‘Oh, black women our partners provide that unique point of to elevate the stature of their prestige collaboration with the Aspen, Colo.-based don’t buy liquid foundation,’ right?” she view....That’s the secret to our success.” brands in the market place,” he said. “In beauty boutique Cos Bar. “It’s only been said. Rather than do a typical beauty-editor Target kicked off the strategy more fact, the launch of Missoni and Jason Wu a week since we launched Cos Bar at breakfast, she invited 40 beauty bloggers to than a decade ago by linking arms with alone generated billions of consumer im- Target, but the results have been fantas- an event and introduced the line to them makeup artist Sonia Kashuk in beauty and pressions for their brands through earned tic. And we are only getting started,” said that way. Within three months, the founda- architect Michael Graves in homeware. and paid media and it elevated their icon- Barra. “It’s a new reality. Consumers are tion was the number-one product in her Barra said, “Target and Sonia shared ic stature in homes across America.” calling the shots.” — M.P. brand, she said. — JULIE NAUGHTON 10 WWD FRIDAY, JUNE 1, 2012

WWD Beauty SuMMIt BalI: SpotlIght on InDIa gloBal cuStoMer paraMount iNDia’s BeauTy business is agewise between 2008 and 2013 as BusiNess’ borders be- the bricks-and-mortar experi- “looking great and feeling good,” are expected to be deodorant, come less defined and clients ence needs to wow and exceed according to Vivek Bali, vice presi- color cosmetics, fragrance, skin more varied, it’s key to be flex- customer expectation ever dent and business head of cosmet- care and hair care. Bali noted ible and embrace all of the more so.” ics and fragrances in the lifestyle the deodorant and makeup busi- new cultures entering stores, New technology has birthed division of Reliance Retail Ltd., a nesses hold huge potential. according to Marigay McKee, new trends and items, as well. diversified behemoth. indian consumers are trad- Harrods’ chief merchant. “Products-to-go and beauty The industry’s sales are ing up regularly. While denizens The London-based luxury gadgets have become increas- growing dramatically, having of urban areas look to premium department store’s advertis- ingly more pertinent and rele- doubled between 2006 and 2011, products, led by the growth in ing slogan is: “enter a differ- vant to today’s consumers,” said when revenues reached $4.25 “organized” retail, mass brands ent world.” McKee, adding such items have billion. “and the business will still reign in rural india, where “it is really the sentence that registered a huge sales rise. accelerate to about $5.8 billion 70 percent of the country’s pop- defines our goals,” said McKee. High-level employee by 2013,” he projected. ulation resides. “it’s what we strive to achieve, training programs (Harrods Marigay “india rides the look-great, “Department stores and spe- creating a point of difference, has a B.a. in sales linked to McKee feel-good wave,” continued Bali, cialty stores are the preferred a store that has presence, has cambridge university, for in- noting consumer demand for channels for beauty distribu- charm, has confidence and a stance), exclusive products beauty products is developing due tion, but [brands wanting] to win universal taste level.” cocktail parties and fashion and consumer experiences to a myriad of reasons, including in india need a lot of coverage Today, half of custom- and beauty shows, and liaising and refurbishments are all

a rise in hygiene and beauty con- in all channels across the coun- ers at Harrods — whose with local embassies, consul- part of the store’s arsenal. sciousness, income, media expo- try,” said Bali. 4,300-square-foot beauty floor ates and foreign dignitaries. McKee said if department sure and greater product choice. He maintained that india’s generated more than 100 mil- “We host events with sports stores were like schools (with lion pounds, or $160.4 million stars, film celebrities, cultural sales associates as teachers at average exchange, last year icons, global musicians, adding and customers as pupils) in the — are from abroad. to the theater and activity ex- eighties, and more like hospi-

“Because of this, we have pected and anticipated every tals (with sales associates as had to change massively the day by those that make the pil- doctors prescribing to custom- way that we work to accom- grimage to Harrods,” contin- er-patients) in the Nineties, modate these new interna- ued McKee. they’ve become like homes and tional travelers,” said McKee. Two years ago, the depart- hotels today. “We have created lots of dif- ment store installed 75 china “sales associates are hosts, ’’ ferent incentives for these unionPay terminals in its stores the customers are our guests new customers — a gift-giving so chinese consumers can use and we invite the guests to ex- service for our asian visitors, their credit cards and not worry perience our hospitality and late-night shopping for the about changing money. our brand with exceptional Middle easterners who think “iPads are regularly avail- service,” she said. “as retail- it’s unacceptable to not be able on most of the counters ers, it is our job to nurture — able to shop till 10 at night in today with apps designed to never alienate, enhance — not the summer when they’re over enhance the commercial expe- detract, and understand our [and] selling gold bullion for rience and the beauty offer,” customers’ needs by listening international travelers.” she added. “The internet, the to their desires, interpreting Harrods has also been or- launch of beauty Web sites ga- their dreams.” ganizing activities, such as lore, the bloggers…mean that — J.W.

at Macy’S, Star ScentS ShIne Macy’s is no stranger to the daughters; they were buying “Bobbi Brown is a nonpromo- new world. for themselves as well.” tional business,” she explained. More women joining the workforce it has taken the lead among and Gonzalez said she is “it’s not like we have gifts or big department stores in retailing looking forward to attracting events. it’s very steady and very are looking glamorous and confident celebrity fragrances, and that new customers with the fall predictable. But all of a sudden, move has changed the dynam- launches of the Lady Gaga and business shot up 30 percent, and, with purchasing power, are ic of the store. “it does create Nicki Minaj fragrances. Not and the only difference was a lot of activity,” said Muriel that Macy’s has been a slouch running that QR code. so i then Gonzalez, Macy’s inc.’s execu- at learning how to talk to the became a believer.” spending on personal grooming. tive vice president and general young. The store has over five The QR codes and other so- merchandise manager of cos- million fans on its Facebook cial media tools has allowed — ViVek Bali, reliance retail ltd. metics, fragrances and shoes. page, and “Macy’s has really Macy’s to start building a fol- Gonzalez said celebrity scents put a big emphasis now on the lowing of “omni” customers “More women joining the fragmented retail scene, where comprise about 10 percent of Millennial customer because — those who buy in both the workforce are looking glamor- about 12 million mom-and-pop her fragrance business, com- they just have a greater buying brick-and-mortar and digital ous and confident and, with pur- stores account for 93 percent of pared with the 4 percent often power than we Baby Boomers,” worlds. “if a customer shops chasing power, are spending on the business, creates a favorable cited as a market-wide figure. Gonzalez said. “We are defi- in store and online, the data personal grooming,” he said. development opportunity for the The power of teen idols was nitely increasing our marketing is that she spends more than if increasingly, teenagers are be- “modern” retail channel, com- driven home to her after the spend in the social space — in she is a shopper in just a sin- coming more “modern” in their prising the likes of supermar- store launched Justin Bieber’s the digital space — in a big way. gle channel,” Gonzalez said. approach to beauty, and male kets, hypermarkets and depart- first women’s scent last June. “We have recently reor- “What we are doing now is a grooming is on a strong growth ment stores. ganized our apparel depart- lot of things to increase cus- track, boosted by products such as “There is increased interest ment…to really focus on the tomer’s use of both channels.” scent and shower gel. indian men and activity,” said Bali, refer- Millennials, both the 13 to 20 One step was to open an ini- are interested in spa and wellness ring to multinationals’’ — such age range and the 20 to 30 age tial eight “fulfillment stores.” treatments in salons, too. as Wal-Mart, Tesco, Metro, spar range. in cosmetics, as well as she noted there are certain There’s fierce price com- and starbucks — that have al- in fragrance, we have actually products that are online only, petition in mature beauty cat- ready launched in india through been getting a better share of that can be fulfilled in-store. egories, like hair and skin care, joint ventures. that customer, not only through More store openings are ex- where products with “fairness” “The 100 percent [foreign di- the young fragrances but also pected. “i think that we’re claims drive the market for both rect investment] in retail is also Muriel through impulse Beauty and going from eight to 250,” she sexes, said Bali. a great opportunity for people Gonzalez some of the younger brands said. “so let’s see how that Hair — a segment in which to start and own their own busi- that we carry there, as well.” goes and we’ll go from there.” shampoos and colorants are the ness,” said Bali, adding that 50 Gonzalez added that she had One of the store’s most valu- largest categories — and skin percent FDi in multibrand re- “There were 12-year-olds recently become a convert to able new customers is the multi- care together generated 79 per- tail is anticipated soon. sleeping outside the store, another facet of social media, cultural consumer. “We are lucky cent of india’s beauty business Overall, india’s total retail waiting to be the first ones to QR codes. While acknowledging at Macy’s, because we started as last year. The third largest-selling sales are likely to almost dou- come in and to get a chance that some industry figures have so many different stores, all with segment was color cosmetics, in ble, to $804 billion by 2020 from to see him,” she recalled. voiced doubt that the promo- pockets of strength and all over which lip and nail products are $411.3 billion in 2011. she noted, however, that the tional communication devices the country, that we have great the most popular, followed by de- Bali ticked off the country’s Bieber stampede did not pull actually work, she ran a clip strength in Hispanic customers, odorant, which with mass-market broad merits, including a stable traffic away from the store’s from a Bobbi Brown cosmetics great strength in asian custom- aftershave reaches 7.2 million economic and political environ- usual favorites. “We had out- video and sang the praises of ers, great strength in african- general-trade doors. Fragrance, ment, a swiftly developing econ- sized growth in all of our regu- the promotion, in which cus- american consumers,” she said. 20 percent of whose activity is in omy and a growing middle class lar, strong pillar fragrances,” tomers could take a picture of a “The better we do at really tar- prestige, came in fifth. with a youthful population (65 per- she said of the Mother’s Day QR code with their cell phone, geting that customer, the better in descending order, the fast- cent of which is younger than 35). results. “The mothers were then watch the makeup ap- off we do.” est-growing categories percent- — Jennifer Weil in the department with their plication video that appeared. — Pete Born

w01a010a(11).indd 1 5/31/12 7:42 PM 05312012194322 WWD friday, june 1, 2012 11 WWD.COM demographic discussion surviving digital’s advances Three women representing three “I would challenge you to go to BrICk-AnD-morTAr expanding key demographics for the neiman marcus, go to Barneys new retailers can survive Wendy Liebmann, Louis beauty industry — the Baby-Xers, York, go after school on a Friday, it’s the digital era by in- Desazars and Jo Horgan. Latina women and the young dig- teenagers and it’s young people with corporating aspects of erati — shared their insights dur- way more than they should have reaching consumers ing a panel about the ever-evolving because they don’t have jobs,” said online as an avenue to U.S. market. The roundtable dis- Chen. “But they’re spending their drive both in-store and cussion, led by Beauty Inc. editor parents’ money.” web sales. It is crucial Jenny B. Fine, included Lesley Jane Digital — and how it is affecting to involve the vendor Seymour, the editor in chief of more each up-and-coming demographic community and tap magazine; Graciela eleta, senior — was another topic discussed by the assets they are de- vice president of Univision, and eva the panel. veloping, too. Chen, the health and beauty direc- “our readers live and breathe That’s the takeaway tor of Teen Vogue. the Internet,” said Chen, who added from a panel lead by Jo “we have an emerging nation with- that they spend an average of nine horgan, founder and in our nation right here in our back- hours a day on Facebook. “ we’re chief executive officer yard, which is the U.S. Latino market,” looking at a point in time when of mecca Cosmetica, said eleta, who added that within the teens and youth in general can in- along with Louis fluence the larger Desazars, ceo of nars Eva Chen, Graciela Eleta and Lesley masses.” Cosmetics, and wendy Jane Seymour chat with Jenny B. Fine. To wit, Chen said 91 Liebmann, ceo of wSL percent of Teen Vogue Strategic retail. readers use the phone horgan inspired while shopping and discussion, asking how that about 80 percent retailers can avoid becoming the dino- ourselves from sense of immediacy in sleep with their cell saurs of the Aughts, especially in markets the stores, where we’re so afraid people phones “literally ei- where ordering online is not only easier are going to spritz us so don’t make us ther under their pillow but sometimes less expensive. too smelly, and yet it’s such an asset that or right next to them.” “retail is no longer real estate,” sug- we have in beauty,” she suggested. “That w hen asked gested Liebmann. “what we are hearing kind of multidimensional level of engage- about emerging so- is that if all we do is focus on the physical ment is what the store has to be about. cial media platforms store, we will not engage customers. we otherwise I don’t really have to go to the like Pinterest, Vidi have to build a different level of relation- store anymore,” she said. and Tumblr, Chen ships and engagements.” “This notion of it’s either online or in urged beauty brands Desazars said, “makeup is the perfect the store, it’s the old speak, it’s not rel- to get involved. category to do that because it is visual evant anymore,” she continued. “It has to “our readers are and playful. I am amazed by the energy be one driving the other. Digital allows us living online and if and the power of makeup as a category to to have that conversation all the time.” next five years, 35 percent of all growth you’re not on it, you are missing out engage customers.” horgan added, “As a retailer, yes, we in beauty and personal care in the on the conversation,” said Chen, That visual aspect was a key compo- absolutely have to look at the whole digi- U.S. is expected to come from Latinas. who also noted the trepidation many nent of a successful nars program at tal arena, but to the other point, to make “This consumer is beauty obsessed.” brands have about immersing them- mecca, he said, which helped consum- actual stores relevant we have to be so Another burgeoning beauty-crav- selves in the digital space. “You’re ers find fresh new beauty looks that were much sharper in what we do and take the ing demographic, created as a result afraid of saying the wrong thing, brought to life by makeup artists in the assets that we can use online and really of the increased blending of Gen-X you’re afraid of the backlash or scan- stores. horgan added that the makeup bring them alive off line, in store.” and younger Baby Boomer consum- dal. You only need to look at [Anthony] artistry was something “tangible” in the Liebmann also noted many consumers ers, is one Seymour dubbed Baby-X. weiner to understand that Twitter is stores. “It allowed us to pull new custom- research online first then go for the expe- “ Yo u have to think of J.Lo, not always a good tool.” ers into store and focus on our expertise rience. “For every dollar spent online, the Chelsea handler, this is a huge According to eleta, Latinas are artistry. And as a result we did over 2,000 people who go online to research, spend market and it’s 106 million strong,” also extremely plugged into digital. applications that month and the average $4 in the store,” she said. She mentioned said Seymour. “we have the highest “I’d say that Latinas were the origi- basket was $280.” Artistry, she noted, has what she called the elephant in the room household income, we are in the cen- nal social media fans,” said eleta. become a key driver of her business that — Amazon and how the digital giant is now ter of the workforce.” “It’s no surprise today with a Latina gets shoppers into stores — 20 percent of opening stores. “It’s comforting to know Seymour continued, “Life expec- population being 10 years younger, the business is through events and appli- they need stores,” horgan said jokingly. tancy is getting longer and longer. It’s that we over index on so many of the cations focusing on artistry. whether digital is a panacea or not, the a whole market that people have just social platforms, including mobile Liebmann used her expertise in other experts agreed the goal is to try everything forgotten about.” phones, smartphones and all of the categories to deliver ideas for merg- in engaging the shopper. Desazars said, For the young digerati generation, new platforms.” ing the digital and in-store experiences. “ Yo u have to tr y, and if it doesn’t work, you according to Chen, beauty is similarly Added Seymour, “our ladies are the She showed a German fish market that pull the plug. That’s the great thing about integral — and attainable — making it fastest-growing group on Facebook.” pumped in a “sound shower” to evoke digital, you have to keep trying.” a group to watch. — BELISA SILVA the feeling of the sea. “we’ve distanced — FAyE BrookmAn

industrY-Building a KeY John Paul DeJoria BUILD YoUr InDUSTrY and you’ll ed millions of dollars in beauty schools, build your company. That’s the advice and we have about 110 right now and a from John Paul DeJoria, co-founder couple overseas that we’re starting. has and chief executive officer of John Paul it been very profitable for me? no. will mitchell Systems. it one day? I hope so. But is it profitable In his view, one avenue for achieving that for my industry? Yo u better believe it,” mission is through philanthropic ventures. he said, adding that the effort gives dig- “People are becoming much more nity to the profession. Beyond learning aware. now whether it’s a spiritual thing, how to provide top-notch services, stu- whether it’s just all of a sudden we’re be- dents are trained in how to market the coming smarter, who knows? But what is business. Altruism is part of the educa- for sure is if you do things in the old way, tion, too, with every student required to it doesn’t relate to today’s new customer,” spend part of their time raising money he said. for their community, their state, their he cited an example from the te- government and their “planet,” DeJoria quila industry and Patron, a company said. raising money for good causes is he started and is still a major owner now part of the culture of being a hair- of. The tequila industry as a whole, he stylist, he said. said, has fostered sustainability, created not all graduates of his school wind jobs and donated to charities. “Did this up in Paul mitchell salons. “my competi- help out the tequila industry? heck, yes. tors are helped out like you wouldn’t be- Tequila sales last year grew. Did it help lieve,” he quipped. “Perfectly okay. we out Patron? Last year, Patron became the want the industry to be built. we’ll gradu- “had we not helped raise the prestige of despite them being more costly. he said, number-one, by dollar volume, tequila ate right now 16,000 students; same time the people in the salon, where they came “But if my industry and your industries company in the world. And we’re only 23 next year, 20,000 students will be gradu- across as professional people, we could all get behind this, and everyone’s buying years old,” he said. ating from Paul mitchell schools.” not successfully launch something with more ingredients that eliminate sulfates relating his concept to beauty, Burnishing the image of an industry that price point. we have to raise the in- or parabens, my cost goes down, your DeJoria said the salon industry needed can produce better sales, he said, citing dustry’s value, the industry’s image in cost goes down and we’re able to offer it to change the method for training and a new product with very expensive ingre- order to do it,” said DeJoria. to a whole bunch of people, a lot of great graduating its students. “I invested 10 dients. The confidence consumers have he urged the industry to increase products, even more realistically priced, years ago in starting beauty schools in the items results in them spending $20 its interest in sustainable products and and still have some nice profit margins.” throughout the United States. I’ve invest- on a shampoo versus $10 or $11, he said. those with no parabens and no sulfates — — F.B.

w01a010b(11);13.indd 2 5/31/12 8:02 PM 05312012200310 12 WWD friday, june 1, 2012 WWD.COM

WWD Beauty SuMMIt

the creatIvIty of DISruptIon Beauty’S changIng tIMeS For JILL berauD, chief executive offi- Institute of Technology and the largest “The beauTy sTory of black women she said. “black women are inspired by cer of Living Proof Inc., disruption is the patent holder in life sciences in the his- in this country is incredibly complicat- whoever captures their hearts, unfet- mother of invention. tory of the country, according to beraud. ed,” said Desirée rogers, chief execu- tered by social norms and judgments of “Living proof was disruptive from During her time at Victoria’s secret tive officer of Johnson Publishing. the past. In other words, the inspiration Day one by taking inspiration from and PepsiCo, beraud said disruption “The concept of black beauty has does not have to have black roots. and outside the industry from the worlds of also led to innovative thinking and ini- been widely discussed within the most importantly, we feel confident for biotech,” said beraud, who previously tiatives that inspire her still today. african-american community for the first time in record numbers to ac- has held posts at Victoria’s secret and “From the launch of the first Miracle years and represents a window into tually put our own spin on the general PepsiCo. “everyone says I want to be bra to the very first Victoria’s secret the socio-philosophical dynamic de- market…there is a new premium on the best in the business, Fashion show, we were bate caused by years of oppression being who you are.” and I want the best in not afraid to be uncon- and self-hate,” continued rogers, and success with the african- the business. I believe ventional, even shock- adding that the evolutionary self-ap- american market doesn’t have a one- sometimes the best is ing,” she said. “We took preciation time line of black women size-fits-all approach, she said. “From outside the business.” inspiration from outside has been closely associated with oth- the First Lady to youTube do-it-your- Like its first beau- our industry with a vi- ers’ perceptions. “Images depicting self videos about hair, makeup and ty product, No Frizz, sion that was a mixture black women as mammies ultimately fashion, they’re looking for a woman Living Proof is focused of entertainment, fantasy started to change with the ascen- on attacking many of the and high fashion.” sion of caramel beauties like Lena Desirée Rogers vexing problems still un- at Pepsi, beraud horne and Dorothy Dandridge,” solved within the beauty named the Pepsi said rogers. “at the same time that industry. Launched in refresh Project, a cam- things were beginning to change 2008, the formula — paign in which mil- in hollywood, Negroes, yes I said which was innovative lions of dollars worth of Negroes, were entering the middle in part due to its lack of Jill Beraud grants were given away class in record numbers.” silicone — includes poly- nationwide to foster the rogers showed a 1953 film which fluoroester, a new mole- social good, as another purported to tell marketers how to cule discovered by Living Proof scientists. highlight of her career. talk to “millions of new prospects “It was disruptive in bringing togeth- “Pepsi refresh was a social move- with $15 billion to spend…the new er a diverse team of talent, people from ment born out of listening to the prevail- Negro family.” The film goes on to as far afield as silicon Valley and Vogue, ing culture…towards doing good,” said say that “the secret of selling to the nanoscientists, medical researchers, dig- beraud. “More people participated in Negro is expressed in one word; that ital experts and even hair stylists,” she Pepsi refresh than voted in the last u.s. word is recognition…most Negroes said. “There’s of course no way to actu- presidential election. ” buy by brand. They’re quick to turn ally incubate disruption but it is possi- beraud’s advice for beauty companies? down off brands.…symbols of qual- ble to create a climate that will be more “everyone says don’t reinvent the ity and prestige are very important likely to produce it.” wheel,” she said. “I say, isn’t the point to to the Negro customer…because he’s To ensure such a climate, Living reinvent the wheel? To be disruptive you had experience with cheap merchan- Proof ’s founder, John Flint, collabo- need to be willing to upset the status quo dise, the Negro resents being offered rated with Dr. robert Langer, one of 13 and take umbrage with convention.” a substitute.” institute professors at Massachusetts — Belisa si lva “This quick snapshot gives us a sense of how simple transactions conjure up cultural and philosophical attitudes of the african-american consumer,” said rogers. “Many of the underlying themes that you saw in the film still exist today…although the african-american market currently is ON-DEMAND close to $1 trillion.” rogers noted that the seventies marked a watershed moment for black VIDEO women. “The seventies were all about who they can respect for beauty ad- ‘black Is beautiful’ and in Chicago, vice,” she said. “In order to stay with BeautySummit12.FORA.TV John and eunice Johnson of Johnson the younger consumers, the iconic im- Publishing created Fashion Fair ages have to constantly change to re- Cosmetics, a prestige brand for black flect the looks of the day. Those com- women,” she said. “The brand was born panies that choose a cookie-cutter from Mrs. Johnson’s ebony Fashion approach without developing a real Fair show, a show launched in the relationship with these consumers will Fifties. she wanted to celebrate fash- ultimately lose. social media is playing ion, style and beauty as seen through a particularly important role in quick- the eyes of black women.” The show ly passing beauty opinions and a great traveled to 150 cities each year and dialogue between this younger group. raised $55 million for local charities, It really is the new word of mouth and she added. the new stamp of approval….Those While in the seventies black women companies that take a stand and create were beginning to celebrate their beau- a real sense of familiarity and excite- ty, in the eighties and Nineties a more ment with this consumer will be the conformist view took hold, she said. ultimate winners.” “Today, it is truly a brand new world,” — Julie NaughtoN

Jean-Paul Agon John Demsey Joseph C. Magnacca L’Oréal The Estée Lauder Walgreens Companies Inc. Arden Buys Global Scent Licenses

eLIzabeTh arDeN INC. said percent, excluding any expenses re- Thursday that it has acquired the lated to this transaction incurred in global fragrance licenses of ed hardy, its fourth quarter of fiscal 2012. True religion and bCbG Max azria The ed hardy fragrance brand, from New Wave Fragrances LLC. which was launched in 2008, includes Terms of the transaction were not the Love & Luck, hearts & Daggers disclosed. arden said that the trans- and ed hardy born Wild men’s action is expected to be accretive to and women’s fragrances. The True CEO Summit 2012 earnings in fiscal 2013, and plans to religion scent brand also launched discuss and issue guidance for fiscal in 2008, while the bCbG Max azria 2013 during its fourth quarter and fis- women’s fragrance franchise was in- cal 2012 call in august. troduced in fall 2011. as well, the company said it ex- arden also holds the designer pects minimal impact to its fiscal fragrance brands of Juicy Couture, 2012 results, ending June 30, as a alfred sung, Geoffrey beene, result of the transaction and is con- halston, John Varvatos, Kate spade, firming its fiscal 2012 guidance for Lucky brand and rocawear. USE CODE WWDBEAUTY12 FOR 20% OFF net sales growth of 5 percent to 5.5 — J.N.

w01a012a.indd 1 5/31/12 7:36 PM 05312012193722 JUST FOR KICKS: Ashley and Mary- Kate Olsen were out to celebrate the North American launch of Superga WWDSTYLE sneakers. PAGE 15

Blue Note BEIJING — A dramatically lit Mary J. Blige shared billing with a wide-ranging fashion show as Giorgio Armani landed in Beijing’s art district for a “One Night Only” fashion and music extravaganza on Thursday. For more, see page 14.

PHOTO BY SHARRON LOVELL

different cities, browse the magazine, and we decided to SIGNING ON: Bonnie Fuller Crystal Bowl,” will come out MEMO PAD current issue as well as previous take the creative energy that has made a few hires at next year. ones and search fashion shows comes with putting together HollywoodLife.com, starting Publisher’s Weekly said, SHOP PURPLE: Purple magazine from seasons past. With Purple’s a new issue and use it as an with new beauty director “James Ellroy fans will relish has given its Web site a fresh 20th anniversary happening in impetus to launch the site.” Jennifer Tzeses. Most recently, Baker’s impressive first coat of paint, and it has a deeply September, Olivier Zahm decided With input from Meri Media Tzeses was acting beauty novel.” It begins on Aug. 5, commercial shade. With today’s the time had come for an and Neverbland, Purple editor at Seventeen and, 1962, when a Los Angeles launch of the redesign, visitors upgrade. Fashion director and claims to be the first online before that, beauty and County coroner arrives at the can shop at the new online the site’s director Paula Goldstein magazine with a shopping tool fashion news editor at Health home of Marilyn Monroe to boutique, check out staffers’ said Thursday, “The summer that allows users to jump from magazine. Senior editor Dory find her lying naked on her picks for art exhibitions in is a really frenetic time for the an editorial page to the point Larrabee joins the site from bed. He discovers the starlet’s of purchase to buy a product Popstar magazine, where she diary, revealing a doomed with a simple click. By clicking was senior editor for four relationship. The coroner on boutique icons, visitors years. — AMY WICKS finds himself embroiled in a will see zoomed-in thumbnail conspiracy far bigger than he images and information about TRAVELING WRITERS: It’s been could imagine, and may be the the items featured in diary a prolific year so far for only one to know the truth of entries. There is also a heart the editors of Condé Nast Monroe’s life and death. icon to mark them, add them Traveler. In addition to two Yanagihara’s novel is a bit to a personal selection page or new books, “Condé Nast more highbrow, focusing on share the product via Facebook, Traveler Photographs 25th a young doctor who joins an Goldstein said. These images Anniversary Collection” and anthropological expedition to and names of products will be “The Condé Nast Traveler a remote Micronesian island linked to their own page within Book of Unforgettable in search of a lost tribe, only the boutique. Users will be able Journeys: Volume 11,” to discover there the secret to navigate through products executive editor Jim Baker of longevity — a finding that by most popular, most recent, will publish his debut novel, leads to fame and a Nobel brand, through keyword search “The Empty Glass,” in July, Prize — and ultimately tragic and item categories. and editor at large Hanya consequences for him and for The new Purple magazine Web site. — ROSEMARY FEITELBERG Yanagihara’s first book, “The the tribe itself. — A.W. 14 WWD Friday, June 1, 2012 LL

For more photos, see Love

WWD.com/eye. harron s

by photos

Tina The Armani runway. Turner

Giorgio Command Performance Armani GiorGio ArmAni promised to The fashion show, which wow Beijing in only one night started a bit late after a slight and did so Thursday by putting mechanical glitch, included on a fashion extravaganza in a wide array of Armani’s the art district. designs for men and women, Armani’s “One Night Only with more than 100 looks from in Beijing” fashion show and three collections. Models party brought 1,000 people to strutted around the circular a massive former water tank runway, which matched the in what was once an industrial shape of the water tank in zone and has, in more recent a concept design drawn by years, been transformed into Armani himself. Behind their the city’s go-to destination for heads, a giant cylindrical video art and performance. screen scrolled night scenes The Armani gala inspired from Shanghai streets and rock legend Tina Turner to make more abstract graphics as the her first trip to China, where collections moved past. she visited the Forbidden City, In a special nod to this still- didn’t have quite enough time fast-growing market, often to take in the Great Wall and described as the world’s bright marveled at the modern heights spot for luxury brands, the of skyscraper-filled Beijing. designer unveiled 15 new looks Before the show began, Turner at the end of the show from the spoke about her first impressions. Privé couture collection. At the “I’m thoroughly impressed,” center was a magnificent black she said, taking note of Beijing’s lacquered gown with a gold surprising spring greenery. dragon draping across the body Fan As to why she traveled around and black feather accents at Bingbing the world for an Armani event, the shoulder. The centerpiece Turner explained that she is a style in black and gold was fan, but that, more practically, “I surrounded by others in an array wear Armani.” of gowns in pale greens, creating “What I love about Giorgio’s stunning contrast and effect for designs is not only the creativity the show’s final moments. but also the versatility,” she said. Those gowns at the end, eye Turner wasn’t the only unveiled especially for China, superstar singer at the show. were on the mind of Chinese After the models cleared off the celebrities at the event before runway, mary J. Blige turned it into it even began. Film star Fan a concert stage. Bingbing, who is poised to make Blige, who showed off her her international breakthrough language skills by greeting and in next year’s “Iron Man 3,” thanking the crowd in Mandarin, said before the show she was performed seven songs in eager to see the collection, in about a half-hour, including an particular Armani’s new gowns emotional rendition of “No More inspired by China. Drama,” “Family Affair” and her “Of course I wear Armani,” version of the U2 song “One.” As Fan said, describing the designer Blige sang, Turner danced and as a favorite when she is looking applauded from the front row. for elegant eveningwear. In Beijing for the first Actress michelle Yeoh said she time, Blige said before her seized the opportunity to attend performance that she was Armani’s “biggest show,” six years happy with her fragrance after his last trip to Beijing. The business, which is doing “really actress was taking a break from well,” and admitted she was filming “Cook Tales” in Bangkok. at the “brainstorming” level Following Blige’s powerful of a fashion collection project, performance, revelers took to starting with shoes and boots. the outside of the cylinder’s While conceding she was not a space to party, backed by tunes designer in Armani’s league, she from DJ Jesse marco. said she would also like to try — KATHLEEN E. MCLAUGHLIN A view of the front row. her hand at “great-fitting jeans.” AND LUISA ZARGANI

w01a014a;8.indd 14 5/31/12 7:05 PM 05312012190548 WWD Friday, June 1, 2012 15 WWD.COM Friends With Benefits Fashion scoops sTOP here!!! The subTerranean level of the SWANKY GALA: Hilary Swank will present was in conversation with journalist Tim

Crosby street hotel in new York was in ichner Marc Jacobs International president Blanks, also revealed how her son Daniel e bacchanalian splendor on Wednesday Robert Duffy with the Piaget award of is in a band, and how he doesn’t let bLaCK OuT: Chanel’s night for the american launch of superga Inspiration at amfar’s third annual her attend gigs because he prefers to Steve globetrotting “The Little black sneakers, with a warmly lit display Inspiration Gala in new York next maintain his privacy. “I want to wear a Jacket” exhibition is getting a of Italian comestibles surrounded Thursday at the new York Public Library. wig and sneak in,” she said. big multi-media push. ahead by flowering vines and potted lemon photo by singer Fergie will also be honored with In addition to the Oxford university of its new York debut next trees scattered throughout the space. the same award and diver Greg Louganis students, the audience included Erdem week (eDs: June 6), the French a vertical garden-cum-step-and-repeat will walk in a fashion show featuring Moralioglu, Christopher Kane and Rupert Everett. fashion house launched a Web proved a mossy green backdrop for the looks from 21 top men’s labels, ranging Versace also let loose some anecdotes, one site at thelittleblackjacket. party’s sponsors, Steve Madden and Mary- from Dsquared2 to Thom browne. of them about fellow jewelry nut elizabeth chanel.com to host videos, Kate and Ashley Olsen. The Olsens are the More entertainment will come from a Taylor. Taylor admired Versace’s ring photos and other information brand’s new creative directors. performance by the scissor sisters. Marc once, and asked if she could try it. Versace related to the project, whose “We’re excited, superga is a great Jacobs will serve as honorary chair of the obliged, but never managed to get the ring centerpiece is a book by Karl sneaker, and we’re launching it,” evening and the event chairs are amfar back. Instead, she received a thank you Lagerfeld and Carine roitfeld Madden said, adjusting his navy chairman Kenneth Cole, MaC aIDs Fund from Taylor: “hey darling, the ring is so depicting 109 celebrities baseball cap and surveying the crowd. chairman John Demsey, Larry Boland and Sean beautiful. Thank you so much!” she also wearing one of its most iconic “Mary-Kate and ashley are friends of Mary-Kate Olsen, Lorenzo Boglione, Patterson. — DAVID LIPKE talked about her love of fashion. “Fashion styles. The site debuted mine, and they wanted [superga], so I Steve Madden and Ashley Olsen. is my life: To give people pleasure and Thursday (eDs: May 31) with got it for them.” VERSACE AT OXFORD: “I’d like to dress the strength. You can get a lot of personal a short video depicting the The new superga retail location is supergas…” she gestured at her feet, Queen. she can handle anything. Maybe strength from fashion,” she said. The making of a jacket in Chanel’s directly facing the hotel at 78 Crosby where, sure enough, her white pair in black with a little leather, a little rock designer was in London earlier this week ateliers, from Lagerfeld’s street, which at the time of the party were visibly scuffed, “and he said, ‘Oh, ’n’ roll,” said a cheeky Donatella Versace, for british Glamour’s Women of the Year sketch through to muslins and had a lipstick red 1961 alfa romeo I’ve been wanting to buy that company,’ who spoke at the Oxford student union awards, where she won in the Fashion the finished garment. - MILes convertible parked in front, top down. and I said, ‘Well, you know, if you do, on Wednesday evening. Versace, who Designer category. — LORELEI MARFIL sOCha The Olsens appeared at the fete please think of us.’ and now our styles from an entrance behind the bar, a for The row have sold out in a matter of TurnInG TO TODD: Gap little over an hour after the party hours, when they first came online, and City Council Urged to Override Mayor’s Wage Veto has teamed up with men’s wear began. both wore long, black drapy we’re thrilled. really, we are.” surely designer Todd snyder for its numbers by The row and smatterings their fans will be disappointed not to neW YOrK — The Living Wage nYC or’s veto will be a major triumph for work- latest pop-up shop. snyder, of jewelry of mixed metals. be able to get the luxe styles? Mary- Coalition, led by the retail, Wholesale ing people, for democracy, and for our city.” an alumni of Gap and J. Crew, ashley shed a little more light on Kate smiled and linked the fingers of & Department store union, urged the The legislation, introduced in October, helped with the installation and the genesis of the collaboration. “When her hands together. “You just want to City Council to override Mayor Michael would require that businesses that receive curation of the temporary shop we first met with steve Madden, who grab all the little baby ones, the little bloomberg’s veto of the Fair Wages forn ew at least $1 million in city subsidies pay their on Fifth avenue and 54th street we’ve collaborated with for a long, long cashmere baby ones. They’re amazing.” Yorkers act on Thursday. workers $10 an hour plus benefits, or $11.50 in new York, which offers the time, I was wearing my old, beat-up — ALESSANDRA CODINHA The act grew out of a citywide campaign an hour without benefits. summer collection of Gap + for living-wage jobs and economic justice, In vetoing the measure, bloomberg said Threadless. Threadless is a For more photos, see the coalition noted, passing the new York it would create “onerous requirements Chicago-based company that City Council by a 45 to 5 vote ona pril 30, and and potential penalties that will…discour- works with artists to produce WWD.com/eye had the backing of elected officials, labor age companies from participating in any unique T-shirt designs. leaders, faith leaders and business owners. city programs that involved financial as- “I presented the idea to Millions Music The coalition noted that a recent Quinnipiac sistance” and would “threaten some of the Gap,” said snyder, noting that university poll showed 74 percent of voters city’s most innovative and important eco- his motivation was to publicize POP sTars and contemporary classical supported it, with 60 percent ofr epublicans nomic development projects.” the work of talented but little- greats joined forces Wednesday at the saying it is government’s responsibility to bloomberg said the bill would make it known artists. “art doesn’t get Clarins Million Meals Concert for the ensure workers are paid a decent wage. harder for companies to make decisions to the attention it needs,” he said. annaccone i

FeeD Foundation at Lincoln Center’s S “We are proud to have played a lead invest in new York and would be “a risk to “but this brings their art to alice Tully hall. role in building the living-wage movement new York City’s economic competitiveness.” life.” homa t “We started with just classical and shaping this legislation,” said stuart he added that “while this bill could poten- Threadless works with more by

music, then the idea was to add on S appelbaum, president of the rWDsu. “The tially result in higher wages for some work- than 200,000 artists who submit some contemporary performers to city needs to create higher-wage jobs, not ers, these increases would come at the cost over 300 designs a day to the give it another element,” said FeeD photo poverty-wage jobs. an override of the may- of job creation.” — ARTHUR FRIEDMAN site, snyder said. each week, cofounder Lauren Bush Lauren. “It’s really Threadless prints the top six beautiful, because all the performers to eight designs voted highest are playing with an orchestra, so it’s a among its followers on T-shirts really great combination.” and other products. It has emceeing the event, which aimed to been working with Gap for two raise enough in one night for one million seasons. school meals, was former Destiny’s Child The shop, which features 16 member Michelle Williams, who filled in for men’s and 10 women’s designs Nick Cannon on less than 24 hours notice. For more career opportunities log on to WWDCareers.com. that retail for $29.95, will “I was in atlanta yesterday when I got remain in place through June the phone call,” said Williams. “The good 30th. Top styles so far include thing is, I’ve hosted before, and if you The neopolitan and Music can read a teleprompter, you’re good.” Makes Me happy for women Performers included John Legend, Spaces and soundwaves and baldie for Natasha Bedingfield, the Ps22 Chorus, men. — Jean e. Palmieri pianist Christoph Eschenbach, violist COMMERCIAL David Aaron Carpenter, conductor Alan Lauren Bush Lauren and David Lauren neW eYeWear: Diesel REAL ESTATE SEWING FACTORY Gilbert and the salome Chamber New York based manufacturer looking Group inked a licensing Orchestra. There was also a special Karan, Jason Wu, Joseph Altuzarra, Frédéric for sewing factories - Steady work! Dresses, sportswear, Fast turning, agreement with Marcolin for appearance from former President Bill Fekkai, Ralph and Ricky Lauren, Cynthia quality oriented factories able to pro- the production and distribution duce popular priced garments. DIRECTOR OF LICENSING Clinton. Concertgoers included Donna Rowley and Amanda Hearst. Contact Sang 646-366-7299 or email to •Responsible for the execution of all li- of its 55DLs eyewear line. The “It’s a crazy world we are living [email protected] censing programs maximizing the au- Showrooms & Lofts thenticity and integrity of the brand collections will include both in when we have huge numbers of BWAY 7TH AVE SIDE STREETS •Assess existing and potential mar- sunglasses and prescriptions Great ’New’ Office Space Avail kets, including understanding market children who are hungry [as well as] ADAMS & CO. 212-679-5500 trends, consumer needs and business frames, reflecting the young childhood obesity,” said Clinton during opportunities and irreverent style of the his presentation. “We have to feed the •Ability to integrate diverse industries ACCESSORIES OPPORTUNITY and disciplines brand run by renzo rosso’s hungry and make healthy those who, •Responsible for all legal aspects relat- Top Sales Executive in Accessories, ing to licensee partners and negotia- son, andrea rosso. because they are hungry, have eaten Strong Presence with Majors.Looking tions “This agreement reinforces for Opportunity. Call Jay: 856 419 6676 •Bachelors degree in things that are bad for them.” Marketing/Business or related field the relationship established Christian Courtin-Clarins, president of •Minimum10-15 years licensing expe- with Diesel’s boss, renzo rience the Clarins Group supervisory board, rosso,” said Maurizio Marcolin, echoed the sentiment. SENIOR MENS BUYER •Responsible for developing, execut- “The dream is that all kids have ing and communicating the buying food,” he said. “We make a living by what and retail merchandise strategy that meets or exceeds financial plans we get, we make a life by what we give.” •Identify key opportunities to maxi- mize Mens sales and drive the process For Karan, the event was a reminder to meet financial objectives that change is in the people’s hands. •Department store, mono brand experience preferred “It’s not about one person; it’s about •Identify business opportunities all of us gathering together,” she said. through analyzing sales performance and gathering marketplace/trend in- “There’s a lot that needs to be done formation •Bachelors degree required in this world, and we can’t be looking •Minimum of 7 years buying and mer- at the government to answer that chandising experience preferably in Michelle problem. The answers for tomorrow sit Mens apparel Williams in the creativity of the cultures around Apply at www.truereligionbrandjeans. com/careers the world.” — BELISA SILVA

w01a015a.indd 15 5/31/12 8:13 PM 05312012201356 16 WWD FRIDAY, JUNE 1, 2012 WWD.COM Celebrating the Queen’s Diamond Jubilee

{Continued from page one} said. It was most likely Diana’s worst night- mood — was another low, but it marked mare, and unthinkable even a decade ago. FOR MORE CORONATION the end of the decade horribilis in the Grayson says the Queen has a lot in com- DRESSES, SEE Queen’s otherwise stellar tenure. mon with her grandfather, King George V. WWD.com/eye. Since Diana’s death, she has subtly “She’s been dignified in very difficult times thrown her energy behind rebuilding the and has guided very conservative changes. royal family’s reputation — and cementing Like her grandfather, who was monarch at a its future. “In the 1990s, disaster was loom- point when there was real talk of revolution ing and it looked like the House of Windsor in the country, she can read the times quite was imploding,” said Paul Moorhouse, who effectively, and incorporate demands and curated “The Queen: Art and Image,” a changes with a calm hand,” he said. warts-and-all collection of photographs, Asked to give her an enduring epi- paintings and works of art tracking the thet, Grayson called her “Elizabeth the monarch’s reign at the National Portrait Dignified.” Gallery. After her darkest days, she figu- Royal historian Hugo Vickers said her ratively took up arms, began to strategize polestar over the past six decades has about the future of the House of Windsor, been duty — to her family and her coun- and maintained her famous unflappability tr y. “She saw her uncle, Edward VIII, and dignity in the process. renounce the path of duty for the per- “She rehabilitated the monarchy ceived path of happiness, and that had and has come back stronger than ever,” a profound impact on her,” Vickers said. said Moorhouse. “She always chose duty. She believes you Nicky Haslam, interior decorator, have got to do your bit, and I think she socialite and cabaret performer who is derives a tremendous amount of satisfac- close to members of the royal family, put tion from knowing she’s done a good job.” Displays in it a different way: “She’s un-Hello-ed the A sense of duty is also a quality she and around whole thing. She hasn’t sold out to the admires in others. “Prince William didn’t London popular press, and she’s given a sense go off the rails, he met a nice girl and celebrating of stability to something that could have married her, and I think that is a great the Queen’s been viewed as not serious.” source of satisfaction for the Queen,” Diamond But that was always Queen Elizabeth said Vickers. Jubilee. II’s way. Harold Macmillan, who served as Unusual for a public figure living in British prime minister from 1957 to 1963, the 21st century, the Queen has executed wrote the following in his diaries from her work without any media interviews, those years: “The Queen…is impatient of public tears, excuses, arguments or com- the attitude toward her to treat her as a plaints. She gets on with her work, which woman, and a film star or mascot. She has — despite her many public appearances

Queen Elizabeth II

the composed facade. There’s the fa- It won’t always be this way. Britons are mous image of the Queen — shocked — gearing up to celebrate the Queen’s 60 with a fireman by her side at Windsor years this weekend with a four-day holi- Castle in 1992 after parts of the build- day that will feature a flotilla — led by the ing were destroyed by fire. Last sum- monarch and members of the royal family mer, she let rip in front of the Duchess — of 1,000 boats along the river Thames, a of Cambridge when the two were hav- concert at Buckingham Palace with artists ing a look at the latter’s wedding dress including Sirs Paul McCartney and Elton on display at Buckingham Palace. She John, a mass of thanksgiving at St. Paul’s called the display — the dress was shown Cathedral, and a royal carriage proces- on a headless manne- sion to Buckingham quin — “horrible” and Palace. But the oc- “horrid.” “It’s made to casion will be bitter- look very creepy,” the sweet for many. Queen told her new “We won’t have her indeed ‘the heart and stomach of a man.’ and friendly chitchat with her subjects — granddaughter-in-law. for another generation, She does not enjoy ‘society.’ She likes her takes place behind closed doors. Since She played along — and I think millions of horses. But she loves her duty and means vowing in 1952 to devote her “whole life, patiently — with the people — and we are to be a Queen, not a puppet.” whether it be long or short” to serving artist Chris Levine, not just talking about Her subjects would agree: According the people of Britain and its imperial who famously made one small island, but to a recent Guardian-ICM poll, 69 per- family, she’s retained an aura of mystery. holographic portraits the countries in the cent of respondents in England and “What do we know about the Queen? of her, which were un- Commonwealth — see Wales believe Britain would be worse off Almost nothing,” said the National veiled in 2007. One of it as a time to say thank without the monarchy, while 22 percent Portrait Gallery’s Moorhouse. “She’s them captures a spon- you,” said Field. say the country would be better off. Only an enigma, and has eluded us all these taneous, Buddha-like Vickers agreed. 10 percent of respondents said that when years despite being the most represented moment that shows the “I think until 2002,

the Queen dies, Britons should elect person in contemporary history.” Queen resting between the Queen was rath- TIM JENKINS a head of state instead of having a new Royal historian Leslie Field agreed: shots, with her eyes er eclipsed by the monarch. On a lighter note, the Evening “More than 100 books have been written shut and lips sealed. Queen Mother. I fear Standard reported this week that sales of about her, we see her undertaking public Called “Lightness of that people took her corgis have seen a 10 percent uptick this duties, we see her relaxing, but the truth Being,” it is on dis- for granted. The year due to the Jubilee celebrations. is we don’t know her. She’s never given play at the National Jubilee is a real op- Indeed, the pro-monarchy mood is an interview, although it is believed that Portrait Gallery. portunity to consider so strong in the U.K. right now — due she keeps a diary, which she writes in “She’s a very ex- what she’s done, and mostly to the Queen, but also to Princes every night and every morning.” perienced model, and A sketch of the Queen’s coronation there is this sense William and Harry and royal newcomer Unlike the myriad presidents, prime was most obliging,” gown by Norman Hartnell, which appeared that this is the last the Duchess of Cambridge — that it’s hard ministers and popes whom she’s outlived, Levine said. “One of on page one of WWD on June 2, 1953. time we can all prop- to believe that, not so long ago, the royal she’s never had to take part in a popular- her aides told me as I erly celebrate her. family was in the dumps. Richard Grayson, ity contest or a political campaign, never prepared for the shoot, ‘We are fairly re- We can enjoy it, and the royal family can head of history and professor of 20th-cen- had to sell herself, or worry about the laxed here,’ and it was — me, too —once enjoy it,” he said. tury history at Goldsmiths, University of next election. “The Queen Mother and I’d settled.” Still, considering that the Queen London, said back in the Nineties, during Diana wanted to be liked,” said Vickers, For the Jubilee, Levine has updated Mother died at age 101, that day may be a all the royal family drama, it would have who wrote the approved biography of another hologram portrait of the Queen, very long way off, and 63-year-old Prince been difﬁcult to imagine Prince Charles the Queen Mum. “The Queen and Prince with a crown he assembled of Asprey Charles could be an old man indeed by ever becoming king, let alone marrying Philip don’t ask you to like them. They diamonds and pearls. “I’m not royalist the time he ascends to the throne. The IMAGES; ALL OTHERS BY WIRE/PRESS ASSOCIATION LEWIS WHYLD/PA his longtime lover, Camilla Parker-Bowles, hope you respect the job they are doing.” in a strict sense, but I have appreciated Queen most likely will have a few more now the Duchess of Cornwall. Every once in a while, however, the the Queen being there as something of a bumps along the road of her reign. But at “Today there is even serious talk of public catches a glimpse of the woman, cornerstone in the background, somehow least for this summer, the nation she leads

Camilla one day becoming Queen,” he wife, mother and grandmother behind reassuring,” he added. gets once again to shout “Rule Britannia.” QUEEN PHOTO BY