By the Gulp Update Our Store Count in Our Q3 ﬁ Nancial Results An- Nouncement Later This Year.” SEE PAGE 9 the Rules of Beauty Have Been Rewritten

UP AND MEDIA GROWING DOWN PEOPLE NAILS SAINT LAURENT’S SALES THE BELEAGUERED CLIMBED, WHILE GUCCI’S NAIL-CARE MARKET SAGGED IN THE THIRD ANCHORMAN SHOWS SIGNS OF QUARTER. PAGE 2 CHRIS WALLACE OF FOX NEWS TALKS ABOUT THE UPCOMING CONGRESSIONAL ELECTIONS, NATIVE ADVERTISING – AND GEORGE CLOONEY. PAGE 12 A PICKUP. PAGE 5

LAMPERT’S HIGH-WIRE ACT Sears Keeps Slashing: Sets Store Closings

By VICKI M. YOUNG

WALL STREET seems to love Eddie Lampert’s ongoing trick-or-treat show at Sears Holdings Corp. Even as the retailer continues to spiral down- ward, its shares jumped 4.5 percent Thursday to FRIDAY, OCTOBER 24, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY close at $35.95 as the company has begun closing additional Kmart and Sears nameplates, as well as WWD select Sears Auto Centers. Nor is Lampert, Sears Holdings’ chairman and chief executive offi cer, wasting any time as he pulls every lever he can to shore up Sears’ crumbling balance sheet. The closures began around late August, and those affected are already in liquidation mode. These stores are scheduled to close at yearend. At least 25 stores to date are being shuttered in mul- tiple states, and perhaps about 750 positions are being impacted so far. Most workers are part-time store associates. In past closings, workers were given the opportunity to apply for jobs at nearby Sears and Kmart stores. Sears also is closing some Sears Auto Centers, a business operation it has been trying to fi nd a buyer for since earlier this year. The centers targeted for closure are adjacent to the Sears stores that are being shuttered. Reports that the number of Sears store closings could impact more than 5,000 workers and total 100 stores are inaccurate, said a Sears spokesman. In typical fashion, he put a positive spin on the cuts. “As we have previously communicated, adjust- ing our physical footprint to focus on our best-per- BEAUTY forming locations is a core component of our transformation,” the spokesman said. “While this has resulted in store closures where appropriate — de- cisions that we do not take lightly — we continue to have a substantial nationwide footprint with a presence in many of the top malls in the country. We will By the Gulp update our store count in our Q3 fi nancial results an- nouncement later this year.” SEE PAGE 9 The rules of beauty have been rewritten. While makeup, fragrance and skin care remain the top players, brands are now telling consumers they can drink their way to glowing skin. For more, see page 4. Decoding Fashion’s Sourcing Puzzle By ARTHUR FRIEDMAN

NEW YORK — Global sourcing has probably never been more dynamic — as in complex, controversial and vital to a company’s success. Speakers at the WWD Global Sourcing forum, at the Asia Society here, said shifts in the landscape have led to a more balanced production strategy that isn’t as focused on Asia and now encompasses the Western Hemisphere, including the U.S. At the same time, issues of corporate social responsibility and sustainability remain at the forefront. Randy Price, vice president and managing director, product supply, Americas, for VF Corp., charted the complexity. VF produces more than 500 million units of apparel and footwear a year, managing 760,000 combinations of style and color, and “all our brands want it on time, at the lowest possible cost and the best quality — it’s a challenge to the supply chain.” VF has about 29,500 people involved in its supply chain, from operations at each brand to sourcing and at the factory level. “Our growth trajectory at VF is pretty steep, so how do we keep up and deliver to the brands what their expectations are? It’s about having the right people in the right jobs,” said Price, who has been with the company 30 years. “I spend a lot of my time working on succession planning, working on training and making sure we have the right people… PHOTO BY GEORGE CHINSEE; STYLED BY SHARON BER in the ranks that are going to be doing a better job SEE PAGE 6 2 WWD FRIDAY, OCTOBER 24, 2014 WWD.COM Private Funeral for de la Renta Set DIGITAL BRIEFING BOX FOR MORE COVERAGE, FIND US ON WWD.COM, SOCIAL AND MOBILE. NEW YORK — A private funer- with cancer. The consummate As reported, he was one of al mass for Oscar de la Renta charmer, the designer mingled the last of the generation that will be held here Nov. 3. with royalty, celebrity, socials literally put American fashion The mass will take place and more throughout his long — and the names that were on at 11 a.m. at the Church of St. career. That career began at the label — on the global map. ON FACEBOOK Ignatius Loyola at Park Avenue Elizabeth Arden in the Sixties While the size of his business Readers wrote and 84th Street. and stretched through the last never matched that of some of their heartfelt De la Renta died Monday three decades of the 20th cen- his peers, his outsized reputa- reactions to the at his home in Kent, Conn., tury and well into the second tion surpassed them in many death of Oscar de at age 82 after a long battle decade of the 21st. other ways. la Renta on our Facebook page. Saint Laurent Up, Gucci Slides at Kering

The continued weakness at the business, Duplaix noted. By MILES SOCHA Gucci, which saw sales in the three Saint Laurent logged double- months slip 1.6 percent to 851 mil- digit gains across retail and whole- PARIS — Hedi Slimane is rock- lion euros, or $1.13 billion, domi- sale channels, with leather goods ing in Mainland China. nated the conference call, although up 35 percent in direct retail, lead Sales of his collections for Kering insisted that positive trends by its Sac du Jour and Monogram Saint Laurent more than doubled in directly operated stores in North lines, with women’s apparel in- there in the third quarter — de- America and Japan — up 8 per- creasing 49 percent to account for fying a broader slowdown in the cent and 4 percent, respectively a quarter of all retail sales and region — and the French house — underline the success of Gucci’s men’s wear improving 17 percent. logged double-digit gains in all “brand elevation” strategy, which In a research note, HSBC other geographies. uses more leather products. analyst Antoine Belge noted the Saint Laurent revenues vault- Duplaix cited “solid trends” in “positive surprise at Puma was ed 27.6 percent to 177.8 million handbags, which represent 32 per- offset by a disappointment at euros, or $235.9 million, helping cent of retail sales, fanned by the ‘other brands,’” which posted a parent Kering to report an in- new Swing and Bright Diamante 1.8 percent gain in sales to 361.6 crease in sales amid a challenging lines, with the Jackie Soft also million euros, or $479.7 million. and volatile environment for re- showing promise. He also touted That reflects a drop in revenues tail and luxury goods. This was ev- double-digit growth for creative di- at Boucheron and watch brand ident by a decline in revenues at rector Frida Giannini’s fall ready- Girard-Perregaux, while soft luxury Kering’s core brand, Gucci, which to-wear and noted men’s and wom- brands in the group progressed, with is trying to reverse the slide in en’s shoes “grew nicely.” Small double-digit gains at Balenciaga China and elsewhere by reinvent- leather goods and luggage were in and “strong growth” at Stella ing itself with fewer logo products. negative territory, he noted. McCartney, Alexander McQueen A marked improvement at Gucci sales in Asia Pacific de- and Christopher Kane, Kering said. ON INSTAGRAM Puma, the core brand of Kering’s clined 5 percent, reflecting the dis- Trends at Pomellato, acquired in Watch the video: Men’s wear designer Joseph Abboud nascent sport and lifestyle division ruption of pro-democracy demon- 2013, were described as flattish. that has been underperforming for strations in Hong Kong and Macau, Francois-Henri Pinault, talks with WWD’s men’s fashion director about his new the last few years against the likes where the environment “further Kering’s chairman and chief ex- limited-edition collection. of Nike and Adidas, also helped deteriorated, leading to double- ecutive officer, said that, “luxury lift group revenues by 3.3 percent digit declines there,” Duplaix said. activities held firm in a complex #15SECONDSWITHALEXBADIA to 2.61 billion euros, or $3.46 bil- He characterized Gucci’s busi- economic environment.” lion, in the three months ended ness as stable in Mainland China, Indeed, Duplaix noted that Sept. 30. Stripping out the impact “difficult” in Singapore while Russian tourist spending contin- of currency and acquisitions, the South Korea and Taiwan were fizzy. ues to weaken, the Japanese are increase stood at 4.4 percent — The latter Asian countries traveling less and flows of Chinese versus 4 percent in the second were also the bright spots in tourists to Europe dipped in the quarter and 4.1 percent in the first Asia Pacific for Bottega Veneta, second and third quarters. In a three months of the year. which posted a 10.4 percent rev- climate of “sharp market volatility, Jean-Marc Duplaix, Kering’s enue gain in the quarter to 286.2 it’s very hard to predict consumer chief financial officer, cited a million euros, or $379.7 million. mood,” he stressed. “sharp surge in brand awareness” Men’s was Bottega’s fastest grow- On the plus side, he noted cur- and told a conference call “the ing category, and already ac- rency headwinds are progres- Puma brand is on the offensive.” counts for more than a third of sively easing. Prada Makes Change to Corporate Structure resulted in an agreement between them and the By LUISA ZARGANI Italian Tax Authority. They advised on the existing tax anomalies, and paid the backed-up taxes. CORRECTION MILAN — Having settled their tax bill, Miuccia “This agreement completely satisfied the claims Prada and Patrizio Bertelli are cleaning up their of the Italian Tax Authority, as declared and con- In a story about Target Corp. on page one, Thursday, former chief execu- corporate structure. firmed by the authority itself,” said the company in tive officer Gregg Steinhafel started the P-Fresh food program, not his The designer and her husband settled with September, when it was revealed that the designer predecessor, Robert Ulrich. Also, current ceo Brian Cornell said Toms is Italian tax authorities last year regarding unpaid and her husband were being investigated on “the Target’s largest partnership in terms of social media and Target will re- visit the idea of launching another proprietary women’s apparel brand. taxes related to the location of their corporate accuracy of certain past tax filings” relating to for- headquarters in Luxembourg rather than in their eign-owned companies. The investigations are ex- home country. Prada SpA said at the time that it pected to be completed by the end of the year. FOLLOW US ON SOCIAL MEDIA would transfer its legal headquarters to Italy. As reported, the Agenzia delle Entrate had @ WWD.com/social On Wednesday, the company said Prada Holding claimed that Prada Holding BV had set up subsid- B V, Prada SpA’s immediate holding company, is to iaries in the Netherlands and Luxembourg to alleg- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS be incorporated into Gipafin Sarl by December. edly benefit from a more favorable tax rate, but that [email protected], USING THE INDIVIDUAL’S NAME. After the merger, Prada Holding BV will cease to they were not really operative out of that country. WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. exist and Gipafin Sarl, the company’s new imme- In December, Prada revealed “the completion of a VOLUME 208, NO. 86 FRIDAY, OCTOBER 24, 2014. WWD (ISSN 0149-5380) is published daily (except Saturdays, Sundays diate holding company, will be renamed Prada voluntary disclosure procedure, which follows the and holidays, with one additional issue in March, April, May, June, August, October, November and December, and two additional issues in February and September) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. Holding Sarl and its legal seat will be transferred company’s strategic decision to choose Italy as its PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Fl, Los Angeles, CA 90025. Periodicals postage paid at Los Angeles, CA, from Luxembourg to Italy. The company said the re- business hub.” and at additional mailing offices. Canada Post: return undeliverable Canadian addresses to P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P. O . 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Any transaction with Italy’s that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. issued capital in the company, and Prada Holding Agenzia delle Entrate, the country’s revenue ser- 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 all unmailed issues. First copy of new subscription will be mailed within BV is in turn wholly owned by Gipafin Sarl. vice, starting from a sum as low as 100,000 euros, four weeks after receipt of order. Address all editorial, business and production correspondence to WOMEN’S WEAR DAILY, The new structure is the latest step in the or $126,500, is automatically sent to the public pros- 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax request to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media, 877-652-5295. For reuse permissions, streamlining of the group’s assets. As reported, a ecutor’s office. please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to well-placed legal source last year told WWD that Collaborating with the Italian tax authorities al- other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, Prada and her husband Bertelli paid 470 million lowed for the group to determine all tax obligations UNSOLICITED ARTWORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS AND TRANSPARENCIES), euros, or $643.9 million at current exchange, to following the repatriation of non-Italian compa- OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ARTWORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY the tax office. Prada and Bertelli made a voluntary nies, based on the last 10 years. The Italian luxury WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS AND OTHER MATERIALS SUBMITTED MUST BE disclosure to tax authorities in December, which group is listed on the Hong Kong Stock Exchange. ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. © 2014 Estée Lauder Inc. Estée Lauder Inc. © 2014 esteelauder.com On Carolyn? Envious

DRIVEN BY DESIRE PURE COLOR ENVY Sculpting Lipstick

#lipstickenvy 4 WWD FRIDAY, OCTOBER 24, 2014

Net-a-porter, which carries Bodyism, a Items from Juice Generation and Juice Press. shake supplement, and will soon distrib- beauty ute The Super Elixir and David Kirsch Wellness Co., also supports the notion of beauty from within, which seems fitting with its recent launch of Net-a-sporter. “Considering our edit [we would definitely go further into wellness],” said David Olsen, vice president of beauty at Net-a-porter. “When we first placed a [Bodyism] order in July, we sold out immediately. Then we bought their entire supply and sold out and we’re just getting back into stock. It’s flying.” While beauty from within can feel more accessible in a beauty industry that leans toward high-priced superficiality, Elle Macpherson, cofounder of Welleco and The Super Elixir, feels wellness is underrated. “When the cells and the body are nourished, it shows on your skin, in our body shape and the way we feel most of all,” she said, adding that she created the business as a 50-year birthday gift to herself. The Super Elixir will launch on Net- a-porter in November and according to industry sources, sales are approaching $2 million since it launched at Selfridges and on welleco.com in June, with most sales coming from the U.S. “Typically, [with skin care], the con- Skin Care’s New Direction sumer is looking for something relatively

kale, apple, celery, parsley, romaine, cu- claimed Alex Jay, product specialist and By JAYME CYK cumber, lemon and activated charcoal to health coach at Juice Press, who added that help with antiaging and ease bloating, while Juice Press’ Fountain of Youth, Gravity and LUMINOUS SKIN comes from many differ- Activated Protein combines raw almonds, Aloe Water are some of the company’s top ent sources, whether it’s a moisturizer or an raw hemp seeds, dates, vanilla bean, alka- juices for skin health. after-sex glow. But lately it’s coming from a line water and activated charcoal to balance “ Yo u can only put so much on your skin

bottle of juice rather than a jar of cream. blood sugar and improve organ function. until you have to look elsewhere and see Juice companies and shake supple- While this blend of bizarre ingredi- what you’re putting in your body,” said ments like Juice Generation, Juice ents may seem like a one-off, Helms isn’t Jessica Richards, owner and founder Press, The Super Elixir and Aloha are stopping at one beauty venture. of Shen Beauty, who recently began marketing themselves as beauty brands. In November, the company will unveil carrying shake supplements by “Juicing as a whole is being looked at in its Beauty Bombs. The 30-ml. shots, priced Rejuvenated and David Kirsch

more ways than just weight loss,” con- at $3.95 each, come in two flavors. Pure Wellness Co. tends Eric Helms, chief executive officer Earth, which mixes bentonite clay, alka- She added, “[I would and founder of Juice Generation. “More line water and rosewater to absorb toxins love] if Juice Press wanted to people, especially women, look to juicing and help remove inflammation, while Le put a fridge [in Shen Beauty] and as part of their beauty regimen.” Détox, a blend of French green clay and sell their products.” While the beauty ingestible has been a cucumber water is designed to provide Unlike Richards, Helms feels it fade-in fade-out craze for decades, a variety hydration and stimulate’’ the liver. would be contradictory to put his fresh of savvy retailers are taking the trend seri- Helms noted that in 2015, Juice juices in a retailer. Even though shelf life Aloha’s The Daily Good. ously, including Selfridges, Net-a-porter Generation will venture outside of New is short, considering the spoilage factor, and Shen Beauty. While sales might not be York for the first time with three new loan accumulation of stock is inevitable. quickly and when you’re ingesting some- sky-high yet, beauty brands need to keep a cations. According to the company, Juice “I’m a huge advocate for fresh,” he thing it’s usually more gradual,” said wary eye on their newest competition. Generation sold more than 400,000 bot- said. “To make something that is shelf NPD’s Grant. “But [juice, shake supple- According to Karen Grant, vice presi- tles of its Supa Dupa Greens last year. stable for longer than a few days, it com- ments and ingestibles] are going to cause dent and global beauty industry analyst While he wouldn’t divulge numbers, in- promises the integrity of a product. If you longer-term benefits, but they do take a at The NPD Group Inc., retailers stand dustry sources estimated that the Activated asked me two or three years ago, would little longer to start manifesting.” to gain by picking up on the trend of juice collection and the Beauty Bombs I be doing something specifically for Similarly, Aloha, a health and well- selling fresh juices or shakes in store. could generate $1.2 million in the first year. beauty, I would have said no, but it’s re- ness brand, launched in January with its “[Juices and shake supplements] are not “[When drinking juice on a regular ally important to be in touch and in tune dried green juice called The Daily Good an either-or when it comes to buying skin basis] you may not find yourself needing with what’s happening, be it the world as a tool to get nutrients into the body care,” she said. “It’s a complement.” seven different products to fake a glowing of beauty, health or nutrition. Would I go that most people lack. Selfridges, which sells The Super complexion, you’ll have one naturally,” further into beauty? Perhaps.” “Some people who take our product stop Elixir, an alkalizing powder that helps using makeup because their skin is better balance pH levels in the body, priced and there’s a lot of antiaging components at $80 for 300 g., is having success with [in The Daily Good,]” noted Constantin these drinks for skin health, proving When the cells and Bisanz, founder and ceo of Aloha. Whole Foods isn’t the only company in- He added that because dehydration is terested in the ingestible market. the body are nourished, such a big issue on airplanes, he is work- “The Super Elixir has exceeded our ing with Virgin Atlantic on a product to expectations and is already one of the top- it shows on your skin, serve their guests when in flight. Also, five brands within the skin and body de- the company, which is sold at ABC Carpet partment in the Beauty Workshop,” said & Home and on aloha.com, is planning to Elizabeth Selvey, Selfridges’ beauty buy- in our body shape and the have its own retail stores in the first or ing manager. “Not only do customers now- second quarter of next year. adays want strong hair, nails and glowing way we feel most of all. While global beauty powerhouse skin, but they want their beauty products Sephora may not be ready to add refriger- to work on a cellular level with benefits to — ELLE MACPHERSON ated juices in-store just yet, some pointed

their inner well-being.” to the growth of juice bars in Korea as an ERICKSEN KYLE Helms, who opened Juice example of the market’s potential. Generation in 1999, isn’t limiting his “In Korea, there’s a culture that beau- business to fruits and vegetables. In ty is from the inside out,” said Cindy November, the company will launch Kim, cofounder of Peach and Lily, a Web three existing juices with char- site that sells beauty products exclusive- coal added, which helps trap ly from her travels to Japan and Korea. chemicals and prevents their “It’s not just topical. Whatever you drink, absorption into the skin. whatever you eat — that is your skin.” Priced at $9.95, each beverage Kim added that when consumers contains different ingredients go into a multibrand beauty retailer in for a variety of skin and in- Korea, they’ll see a separate refrigerated ternal benefits. For example, section with juice supplements including Activated Lemonade, which vitamin C shots to brighten and collagen BY PACKETS GEORGE CHINSEE; ELIXIR AND ALOHA contains lemon, lime, raw shots with mixed berries to firm skin. agave, alkaline water and ac- ’’ “There’s definitely a demand for it,” tivated charcoal, is said to sup- The said Kim, who is looking to add beauty port healthy, glowing skin and Super supplements to Peach and Lily. “It’s part draw impurities out of the body. Elixir of a larger mentality that skin care starts

Activated Greens blends spinach, with overall wellness.” JUICE BOTTLES PHOTO BY WWD FRIDAY, OCTOBER 24, 2014 5 WWD.COM Lauder Plans Global Skin-Care Push are applicable in this category. “I don’t Two cylinders packaged together By JULIE NAUGHTON think luxury skin care is driven by age,” comprise the Sculpting/Refinishing Dual she said. “It might be a 40- to 60-year- Infusion. The Golden Vial contains the DESPITE THE lackluster mood of the old in North America and Europe, or a product’s key ingredient, the black dia- U.S. prestige treatment market this year, 30-year-old in China. It’s about wanting mond truffle, sourced from southwest the Estée Lauder brand is moving ahead the most technologically advanced for- France. The Platinum Vial contains a on a global basis to update its Re-Nutriv mula. We’re treating it almost as a to- proprietary blend of actives designed franchise and deepen its worldwide tally different brand.” to resurface and smooth skin, as well as reach in skin care. Hudis contended that the brand’s South Sea pearls for a luminous effect, The effort is being spearheaded price and positioning with the Ultimate said Pernodet. by the launch of Re-Nutriv Ultimate Diamond franchise “is likely to pull in The brand also created a signature Diamond Sculpting/Refinishing Dual new users globally and convince current scent for the product, a mixture of cit- Infusion, due in November. customers to trade up to a more premi- rus notes, jasmine, rose and cedarwood, “Luxury skin care has been a cor- um product.” among other notes. nerstone of our business since Estée Hudis declined to comment on what The product will retail for $360 for a Lauder created the market with [the percentage of Lauder’s overall sales 25-ml. bottle, putting it at the higher end original] Re-Nutriv in 1956,” said Jane are done in skin care, although she did of the Lauder brand price spectrum. Hertzmark Hudis, global president say that luxury skin care is one of the Advertising and promotion will in- of the Estée Lauder brand, noting brand’s fastest-growing categories and clude a robust print and digital cam- that Re-Nutriv cost $115 a jar in 1956. that the overall skin-care category is a paign, said Richard Ferretti, senior “Luxury skin care is one of the fastest- growth driver for Lauder. vice president and global creative di- growing categories globally. We have a The last updates to the Re-Nutriv line rector for the Estée Lauder brand, add- five-year plan with Re-Nutriv to drive it were in 2012, when the brand launched ing that print ads in the U.S. will break forward globally, because it is such an Re-Creation Face Crème and Night in November fashion, beauty and life- important category.” Serum, and Eye Balm and Night Serum style magazines. Hudis said the brand is creating a for Eyes in its top 100 doors. The product will be sold in about 250 new tier within the Re-Nutriv fran- Ultimate Diamond Sculpting/ doors in the U.S., as well as globally, par- chise with this launch. “This will be the Refinishing Dual Infusion is intended to ticularly in travel retail and Asia. first in a series of Re-Nutriv Ultimate give skin an energy and collagen boost While executives declined comment Diamond products. We started with a combined with antiaging benefits, noted on projected sales, industry sources es-

JOHN AQUINO Re-Nutriv Ultimate Diamond serum, as traditionally they are a core Nadine Pernodet, vice president, Basic timated that Ultimate Diamond could do Sculpting/Refinishing Dual Infusion. strength for us.” Science Research and research and de- upward of $60 million at retail globally Hudis doesn’t feel that age targets velopment for the Estée Lauder Cos. Inc. in its first year on counter. PHOTO BY Nail Business Gains a Bit of Luster Race Heats Up for P&G Post THE BATTERED NAIL-CARE business damage gels have caused has more women lined and focused P&G.” He was re- is clawing its way out of the red. interested in full cover artificial nails and By PETE BORN and EVAN CLARK ferring to Lafley’s pledge to eliminate While still in negative territory, mass nail art. Among the new items Kiss is roll- 80 to 90 of the company’s 160 brands retailers see a glint of hope in the $1.6 ing out for 2015 are Kiss Salon Acrylic THE RACE to succeed A.G. Lafley has within 18 to 24 months. P&G’s retreat billion category as losses are reduced, French nails for a more natural and shifted into a new gear. might well open up some opportunities thanks to innovative nail launches. seamless look; Kiss Salon Secrets Luxe More names have emerged in the for other competitors in the field. Retailers estimate the nail category Accents, stones charms for a 3-D look; and latest Procter & Gamble management “They’re probably licking their posted 15 percent declines for the first a Kiss Salon Secrets Nail Art Pro Tool Kit. shuffle, with some observers speculat- chops for the brands that they might half of 2014, ended March 30, a trend that Connell said Mintel research reveals 46 ing the field of contenders is narrowing want to pick up, [brands] that have not put a dent in the overall beauty category. percent of nail product users are inter- to ultimately succeed Lafley as chief being doing well, that were probably However, IRI numbers for multiunits ested in trying nail art tools. “Many go to executive officer. not supported,” said Grace Barnett, (drug, food, supermarket, club, military, craft stores [for items for nail art] so we Charlie Pierce has been named a debt analyst who covers consumer discount and dollar stores) reveal the created a kit our retailers could sell that president of the company’s Global product companies for Fitch Ratings, sales drop has been pared to 4.9 percent includes everything they need,” she said. Grooming and Shave Care category, but not P&G. for the 52-week period ended Oct. 5 in Walgreens, CVS, Rite Aid and Kmart all succeeding Patrice Louvet, who takes “To see a competitor in a little bit of the $1.6 billion category. “The nail busi- plan to offer the $9.99 kit. the leadership of two divisions — turmoil is probably a good time for the ness is cyclic,” explained Paul Murphy, Harvey Alstodt, president of MBA P&G Salon Professional and Global others to strengthen what they’re doing,” president and general manager of Sinful Beauty, said one reason women shied Prestige. Pierce has been group said Barnett, who added that retailers Colors, who predicted last April the sec- away from nail enamel in the past year president of Global might start to see P&G ond half would improve. But retailers is fear of the chemicals in formulas. Oral Care and New competitors as more said they see more than just normal busi- He’s getting traction for his new wa- Business Creation. stable since they’re ter-based polishes The elevation of not in the midst of cut- called Color Well. Louvet follows by a ting brands. CRITICAL A final tact retail- month the promo- Analysts will be ers used to rebuild tion of Alex Keith keeping a close eye MASS nail is presenta- from personal care on which brands BY FAYE BROOKMAN tion. Rite Aid, for to president of skin might be cut when the example, has nail care, including company reports first- bars in more than the troubled Olay quarter results today, ness cycles reinvigorating in- 500 stores that Bill megabrand. Deb but their financial ex- terest in the category. Bergin, group vice Henretta remains pectations are muted. “Nail is coming back to president health group president Wall Street is look- some extent, mostly thanks and beauty at Rite of Global Beauty. ing for the company to Sally Hansen’s Miracle Gel Aid said has de- What touched off to post earnings of and Revlon’s Colorstay Gel livered “impres- speculation was $1.07 a share, up 2.9 Envy,” said a top drugstore sive results.” the disclosure that percent from $1.04 a chain merchant, who added Walgreens pol- Melanie Healey will A.G. year earlier. Overall that those two brands “brought ished its nail mer- step down as group Lafley revenues are slated business back from the dead.” chandising with president of North to fall 1.8 percent to Women have clearly shown an illuminated America next year. $20.83 billion. they like the gloss and wear of Innovation is driving the category. fixture with a focus She was thought to be a contender for While noting that Pantene’s sham- gel manicures, but are disap- on its wide range the top job, along with Henretta and poo business has picked up in the U.S., pointed with the damage and the time of price points stretching from Sinful to other group presidents. Schmitz nonetheless concluded that it takes to sit under the light to cure the higher end brands such as Essie. “It’s pretty clear that A.G. is ready- overall, “we don’t expect any material color. Innovations, particularly from Buyers plan to tinker with planograms ing the organization for succession,” acceleration in the business.” Miracle Gel and Gel Envy, solved that to eliminate slow stock keeping units to said Bill Schmitz, managing director Mark S. Ashtrachan, an analyst at problem with a two-step polish and light clear space for implements and nail care at Deutsche Bank. The analyst’s pick Stifel, said, “Strategically, the cull- –activated top coat that’s been a hit with such as Vitry’s line, which promotes to be the next ceo is David Taylor, ing of brands is supposed to improve gel crazed shoppers. The at-home gel healthy nail growth. The statistics suggest group president of Global Health and revenues and gross margins, but we companies, however, feel there’s still they are on to something: IRI data proved Grooming. “He is a very clear think- question if it is drastic enough to im- growth in their kits. “We know there are those were the two strongest areas with er and he is well liked internally,” prove the underperformance of recent women, especially in this economy, who treatment volume up 1.77 percent and Schmitz noted. years. The beauty business lost share want to save money and do gels at home,” implements grew 1 percent. P&G spokesman Paul Fox dis- while profitability remained muted, said Barry Shields, managing partner of “My only fear is the nude nails the missed the winnowing-out theory, say- indicating the company has a lot more Red Carpet Manicure, which has been a fashion industry is showing right now ing the changes were partly triggered work to do to improve what should be strong performer at Ulta. Red Carpet is that doesn’t help our efforts to sell by retirements, and the promotions of a good business for Procter. They have responding with a new 30-second lamp. more color,” said one buyer. “I hope Louvet and Keith show the company’s a collection of well-known brands and Carrie Connell, senior marketing man- for more vibrant hues for the summer,” level of investment in building “a lead- should be able to invigorate them with ager for Kiss Products USA, suggests the she concluded. ership team reflecting a more stream- appropriate action.” 6 WWD FRIDAY, OCTOBER 24, 2014

WWD GLOBAL SOURCING Industry Takes Fresh Approaches to Production {Continued from page one} over the last several years as global costs Bob Bland, Nanette Lepore have shifted, fast turn has become more than we’re doing. I want to retire and be and Brad Miller on the vital and country of origin seems to have happy and hopefully continue to see the “Making It in America” panel. taken on more importance. stock price go up.” Designer Nanette Lepore said, “I defi- VF makes about 30 percent of its nitely see the momentum building for products in owned-and-operated manu- Made in America products. I think it’s a facturing facilities, all in the Western great opportunity to brand your company Hemisphere, except for one plant in as one that is working in America. People By ARNOLD J. KARR Egypt “that’s small and growing.” are very excited about locally made prod- “We source about 70 percent, operat- ucts. There is a shift in consumerism WHEN LONDON-BASED AllSaints began the process of ing in about 40 countries and using about from conspicuous consumerism to con- looking to improve its processes, operations and finances 2,000 contractors, about $3 billion FOB,” scious consumerism, and that all goes upon the appointment of Burberry veteran William Kim said Price, who is based in Panama City. back to local manufacturing.” as chief executive officer two years ago, the wish list was “So it’s pretty big, pretty complex, a lot Lepore said she manufactures in the long and the budget was limited. of moving parts. We’re the world’s larg- U.S. because it gives her “great qual- Much of the available capital was spent when it decid- est producer of jeans when you add all ity control, greater control over the fit; ed to buy its own distribution centers, one in the U.K. and our brands together, the largest producer I have great inventory control because the other in the U.S. That allowed it to provide next-day in Mexico and Central America. We have I don’t have to be guessing three months delivery to customers on its Web site, allsaints.com, rath- over 15,000 employees in Mexico work- or six months in advance…I can actually er than the previous five- to seven-day wait for fulfillment, ing in our owned-and-operated factories. manufacture to the piece or can react to and it also allowed the company to cut its processing costs We’re the largest footwear producer in reorders in 10 days to two weeks.” in half, Peter Wood, AllSaint’s chief financial officer, told the Caribbean and growing.” One such example is Manufacture the WWD Global Sourcing forum. In the U.S., VF has four facilities: one New York, a hybrid fashion incubator The company didn’t have the capital for a sophisti- in Easton, Pa., making Major League and factory for independent designers cated enterprise resource planning, or ERP, system, so it Baseball on-field uniforms; another pro- ’’ that recently received a $50,000 grant as brought in two experts who produced “fresh thinking and ducing Seven For All Mankind denim part of an Obama administration Growth speedy solutions.” lifestyle products in California, and two Accelerator Fund competition. The grant AllSaints, which markets women’s and men’s sports- decoration facilities in Tampa, Fla., and will aid efforts to launch a 160,000-square- wear on both sides of the Atlantic and now in South Appleton, Wisc. foot manufacturing innovation center for Korea, needed a better Web site and, availing itself of a Describing VF’s supply chain apparel, textiles and wearable technology “passionate, committed” work force with an average age “Playbook” that he helps run, Price said it ter quality and fit because that brand Bangladesh, where he showed an artist’s in Sunset Park, Brooklyn. of 24, did that in-house, as well. “Other brands have spent has as its tenets “global balance, manufac- demands fit and quality and consistency, rendering of a state-of-the-art facility being Bob Bland, chief executive officer of millions of dollars doing that sort of thing,” Wood said. turing hard skills, ‘third way,’ acquisition while using a lot of really high-stretch built that’s “going to start up very soon. Manufacture New York, said, “We have “We bought millions of pizzas.” integration and planning and operations.” fabrics, and we can get product to the “VF is in Bangladesh and we plan to a critical mass of Millennials who are The company, with revenues of $350 million primarily In achieving global, he said, “We don’t stores a lot faster.” stay there,” Price said of the beleaguered starting their first lines, who have been generated from the U.K., also sought to simplify its sup- put all our eggs in one basket. Mexico Price then described what he called country that has been the site of several in business five years or less, and they’re ply chain and reduced its supplier count to today’s roster and China are big parts of that. We’re the “Third Way,” which he said can be major factory disasters and the target of coming to our door with sustainability of 65 from more than 300 in 2012, all of them located in moving product out of China as a lot of “as shallow or deep as you want it to be, international scrutiny to improve safety already embedded into their culture and China, India, Turkey and Portugal. The bottom-line result, people are, but China is a big market for kind of like a marriage, or a relationship conditions. “We want to make it better,” into what they want their brand to be.” the cfo said, was a five-point improvement in initial mark- us from a retail standpoint. China will noting the new building will be fully ded- Bland said these firms have found a up and a consequential near doubling of its run rate for never go away for V F. Long term, what icated to VF production. “It’s being built solid base of stores and consumers will- earnings before interest, taxes, depreciation and amorti- makes sense for VF is China for China. to OSHA standards. We can get LEAD ing to pay a little more for a product be- zation. We have a lot of footwear still in China, While we all have certified if we choose to do that. We’re cause they know where it was made. But with 2,500 employees and 3,000 styles every year, but we are working with vendors to move partners with the vendor on building “We work with dozens of different AllSaints sought a method of tieing all aspects of the or- footwear out of China. Egypt is 2 percent, chased the lower-cost design, workflow, methods, equipment, manufacturers in all five boroughs in ganizations together, a platform that would allow not only but we also have Nicaragua, Honduras, engineering, the whole nine yards, and New York City for all kinds of mini- for better communication with its suppliers and within Bangladesh, Vietnam, so we’re pretty di- countries, that model is we’re going to have people on the ground mums,” she said. “Made in USA and individual departments but also among the various de- versified across our portfolio.” there to make sure it’s successful.” Made in New York are integral to our partments. AllSaints turned to Google for Work, a cloud- He said there’s a big difference between As for other countries and regions, brands, particularly their urban sensibil- based commercial version of Google Docs. direct manufacturing and a sourced model. running out of gas. Price said VF has found it difficult to do ity. If it says Brooklyn or New York on the “What’s amazing is that they did it in 90 days,” said “It’s more complex, but you get a bet- business in India, where performance, product, it should be made there.” Rhonda Stites, head of industry solutions at Google for ter product in the end,” he said. “Seven — BRAD MILLER, NEW BALANCE value and transparency are inadequate, Bland said she sees “a great opportu- Work. Since so many employees were already familiar For All Mankind had been done in con- while it has had more success in Vietnam nity to do infrastructure building in the with the various protocols of Google Docs, the company tracting in the Los Angeles area. We put and Cambodia. He said Africa is a region industry for the first time in 30 years... provided no training and, despite some reservations, eas- a plan together to pull back inside. We or significant other, because you have to of growth and he has made several ex- that’s what we’re doing.” ily adapted to the heightened transparency inherent in have our own cutting room, our own sew- have a willing participant to have a third ploratory trips there and the company is Brad Miller, general manager of en- the system. ing room in L.A., and we have a contract way relationship. forming a strategy for the continent. during purpose and domestic manufac- “Pete struggled moving spreadsheets, but he’s got it laundry right next door that we use and “We have very shallow, where the only “It’s probably the next place,” he said. turing at New Balance Athletic Shoe Inc., now,” Stites said of the cfo, noting that GFW has been in- we do our own finishing. So we do 95 thing we do is help the factory plan pro- “We think we’re probably going to do some- said, “We’ve been making shoes in the corporated in “all collaboration systems used internally percent of our cutting, 40 percent of our duction,” he said. “Deep interaction can thing in Africa fairly soon. It could actually U.S. for 75 years. We’ve never wavered and with suppliers,” including video conferencing and embroidery, 30 percent of our sewing and be boots on the ground where we have be [company] owned.” in our commitment. What we’ve seen is file sharing. The company pays a subscription fee for the 60 percent of our finishing, which saved engineers in the plant,” helping design While U.S. manufacturing only plays a a huge demand globally for American- service, where virtually all corporate literature, such as us $11 million since 2009. Probably the workflow and production planning. small role in VF’s sourcing, the Made in made products….There’s definitely a store training manuals, can be found. biggest thing it did for us is get us bet- An example of a “heavy third way” is America movement has gained traction premium in making products here, but if Also at the summit, Samir Moorjani, vice president and senior regional trade sales manager for HSBC Bank USA, outlined financing options available to importers ’’ and their suppliers to help build a “sustainable supply where virtually all corporate literature, such chain” in financial terms. as store training manuals, can be found. In one of several scenarios he shared, a supplier hold- Getting the Most Out of the Supply Chain Dollar Also at the summit, Samir Moorjani, vice ing a $1 million order from a retailer could save $3,400 president and senior regional trade sales in financing costs on an order with 30-day terms and al- WHEN LONDON-BASED AllSaints began AllSaints, which markets women’s and of tieing all aspects of the organizations manager for HSBC Bank USA, outlined most $6,100 on an order with 60-day terms by engaging the process of looking to improve its men’s sportswear on both sides of the together, a platform that would allow not financing options available to importers and in an HSBC program in which he received a discounted processes, operations and finances upon the Atlantic and now in South Korea, needed only for better communication with its their suppliers to help build a “sustainable payment from HSBC following the retailer’s receipt of an appointment of Burberry veteran William Kim a better Web site and, availing itself of a suppliers and within individual departments supply chain” in financial terms. order, with HSBC collecting from the retailer later. This as chief executive officer two years ago, the “passionate, committed” work force with but also among the various departments. In one of several scenarios he shared, a is possible because the cost of capital for the supplier in a wish list was long and the budget was limited. an average age of 24, did that in-house, as AllSaints turned to Google for Work, a cloud- supplier holding a $1 million order from a market like Sri Lanka or Vietnam — currently between 6 Much of the available capital was spent well. “Other brands have spent millions of based commercial version of Google Docs. retailer could save $3,400 in financing costs and 14 percent, depending on the creditworthiness of the when it decided to buy its own distribution dollars doing that sort of thing,” Wood said. “What’s amazing is that they did it in 90 on an order with 30-day terms and almost contractor — is likely to be higher than it is in the U.S. centers, one in the U.K. and the other in “We bought millions of pizzas.” days,” said Rhonda Stites, head of industry $6,100 on an order with 60-day terms by “This takes into account the interest rate differential the U.S. That allowed it to provide next- The company, with revenues of $350 solutions at Google for Work. Since so many engaging in an HSBC program in which he and the time value of money,” he added. day delivery to customers on its Web site, million primarily generated from the U.K., employees were already familiar with the received a discounted payment from HSBC allsaints.com, rather than the previous five- also sought to simplify its supply chain and various protocols of Google Docs, the company following the retailer’s receipt of an order, to seven-day wait for fulfillment, and it also reduced its supplier count to today’s roster provided no training and, despite some with HSBC collecting from the retailer later. allowed the company to cut its processing of 65 from more than 300 in 2012, all of reservations, easily adapted to the heightened This is possible because the cost of capital costs in half, Peter Wood, AllSaint’s chief them located in China, India, Turkey and transparency inherent in the system. for the supplier in a market like Sri Lanka financial officer, told the WWD Global Portugal. The bottom-line result, the cfo “Pete struggled moving spreadsheets, or Vietnam — currently between 6 and 14 Sourcing forum. said, was a five-point improvement in initial but he’s got it now,” Stites said of the cfo, percent, depending on the creditworthiness The company didn’t have the capital mark-up and a consequential near doubling noting that GFW has been incorporated in of the contractor — is likely to be higher for a sophisticated enterprise resource of its run rate for earnings before interest, “all collaboration systems used internally than it is in the U.S. planning, or ERP, system, so it brought in taxes, depreciation and amortization. and with suppliers,” including video “This takes into account the interest rate two experts who produced “fresh thinking But with 2,500 employees and 3,000 conferencing and file sharing. The company differential and the time value of money,” and speedy solutions.” styles every year, AllSaints sought a method pays a subscription fee for the service, he added. — ARNOLD J. KARR

w24a006(7)a;8.indd 6 10/23/14 7:14 PM 10232014191609 WWD FRIDAY, OCTOBER 24, 2014 7 WWD.COM

you have a robust supply chain, good re- work in conditions they feel are unsafe.” ment,” Meiers said. “Women lack access to “In the beginning, imports were grow- lationships with your partners, your lead The Alliance has committed to pro- a lot of critical health information and ser- ing faster, but now in the second year of time tends to be less then half of what you vide 50 percent of wages lost to remedia- vices in many developing countries.” the trade agreement, exports are recu- need to get something in from the Far tion up to four months. Ann Inc. launched a program in March perating what we lost in 2003 to 2007 in Industry Takes Fresh Approaches to Production East, so there’s benefits there. Obviously “Continued reforms of labor laws are called Responsibly Ann, committing to the region,” she said. there are also benefits as it pertains to needed, including recognition and es- provide health and literacy training to Reyes noted that the majority of the shipping and transportation costs.” tablishment of unions in factories,” Burr more than 100,000 women in their global investment is from the private sector. New Balance owns five factories in the added. “Garment workers and labor ac- supply chain over the next five years. “We are very strong in jeanswear, U.S. — three in Maine, one in Lawrence, tivists must be safe from harassment and “Healthy and financially empowered basic denim, and now we’re going into Mass., and one in Boston, accounting for violence as they exercise their rights. The women in our contract factories are in- premium denim, with all the washes and 5 percent of global production. finishes and innovation,” she said. “While we all have chased the lower- While the Obama administration is cur- Juanita Duggan Racheal Meiers and cost countries, that model is running out rently negotiating two major trade agree- and Randy Price Jeannette Ferran Astorga of gas,” Miller said. “When we talk about ments and has several trade preference on-shoring, we know that the competition programs up for renewal, Juanita Duggan, is coming and that local for local is be- president and ceo of the American coming a norm. The supply chain here is Apparel & Footwear Association, said going to improve and the infrastructure don’t except action any time soon. is going to improve.” She said the midterm Congressional He said that is already happening in elections should result in the House remain- some places — “Look at the textile indus- ing in Republican control, while the Senate try in the Carolinas. They’ve literally re- is up for grabs. It will be followed by a lame invented themselves overnight.” duck session in November and December While it’s not likely to ever return to that could see limited legislative action. it’s heyday of manufacturing of a genera- “A lot of people...think there’s going tion ago, the revival of Made in America to be a secret trade package,” Duggan KYLE ERICKSEN KYLE

has in part come on the back of problems BY said. “I don’t believe it.” in places such as Bangladesh. Duggan and Nate Herman, vice presi- Mara M. Burr, senior counselor for the dent of international trade at AAFA, both PHOTOS Alliance for Bangladesh Worker Safety, referred to a “chicken and egg” situation noted the garment industry there em- hardest work is still ahead of us. We’re one extricably linked to higher productivity in reference to which will come first — ploys four million people, 80 percent year into a five-year commitment. The goal and a more sustainable supply chain,” renewal of presidential Trade Promotion of them women. The sector drives the remains to help the Bangladesh garment said Astorga. Authority or a vote on the Trans-Pacific Bangladeshi economy, accounting for 80 industry safely serve its purpose to be a To date, Ann Inc. has directly impacted Partnership agreement. percent of the nation’s export earnings. central driver of the Bangladeshi economy 27,000 women in their global supply chain. “ Yo u know from past experience that The Alliance has inspected 100 per- and be a critical pathway out of poverty Astorga said the company has worked in every trade agreement requires the presi- cent of the 587 factories from which its for millions of Bangladeshi women.” countries such as Pakistan, Bangladesh, dent to be on this 24/7 and forcing the members source, recommending 19 for Jeannette Ferran Astorga, vice presi- Egypt and Kenya — some of the highest- Congress to do it,” Duggan said. “That full or partial closure. She said, “All fac- dent of corporate responsibility at Ann Inc., ranking on the list of treating women badly. hasn’t happened so far. Maybe it will hap- tories will need to undergo some form and Racheal Meiers, director, partnership Colombia has benefitted from its free pen when some of these trade agreements of remediation, including installing fire development and research — inclusive trade agreement with the U.S. and the are closed, but there’s disagreement of doors, lighting equipment and industrial economy, at BSR, described initiatives to moving of apparel manufacturing to the when TPA should be presented.…You can fire sprinkler systems.” empower women in factories by promoting Western Hemisphere. Sylvia Reyes, direc- be sure, though, that we’re going to be in Going forward, she said, “Workers must women’s health, finance and literacy. tor of textiles and apparel for the U.S. at there fighting like dogs to do something as also be empowered to speak up and take “I’ve come into contact with the fact that Proexport Colombia, said in the second soon as possible.” action when they feel a factory is unsafe…. women are disproportionately affected by year of the U.S.-Colombia Free Trade — WITH CONTRIBUTIONS FROM Workers must have the right to refuse to issues related to violence, sexual harass- Agreement, there’s been a major shift. LISA LOCKWOOD

Oscar de la Renta

“As we are deeply saddened by the loss of our friend, we are truly grateful to have had him in our lives and celebrate the way he lived his. Sir, you will forever live in our hearts.”

w24a006(7)a;8.indd 7 10/23/14 7:14 PM 10232014191614 8 WWD FRIDAY, OCTOBER 24, 2014 Silvia Venturini Fendi Hits Hong Kong

By PAYAL UTTAM

HONG KONG — Silvia Venturini Fendi touched down here Thursday for the re- opening of Fendi’s three-story boutique in the Landmark mall. “Hong Kong is very important for us. It’s a city that loves Fendi,” said the Roman fashion house’s creative director of accessories, men’s wear and children’s wear. “There’s a big market here and it’s growing.” Landing early in the morning, Venturini Fendi was immediately impressed with the energy of the metropolis. “I was amazed. There was so much activity I would say it’s so different from Italy.” Often gaining in- spiration from her trips, she added: “ Yo u always find beautiful new buildings and you see that things move fast here[…] I’m looking even when travelling by car and trying to grab every little detail. I like to Interiors of the Fendi store in Hong Kong. watch people walking on the street.” Spanning about 4,000 square feet, the newly renovated boutique was designed by Tokyo-based French archi- Nobile Mino, it was housed in a dramatic expanded its men’s wear section and de- Next month, Fendi will cut the ribbon tect Gwenael Nicolas and is the first of circular golden structure on the ground voted a separate floor to the category. on a store in Beijing’s Shin Kong Place its kind in Asia. Following in the foot- floor of the mall near the store entrance. “It’s a new target group and doing and they will reopen their boutique in steps of the Roman brand’s flagships “We chose some of the iconic mo- very well for now,” he said. “We are very Shanghai’s Plaza 66 mall in the follow- on Montenapoleone in Milan, Avenue ments of our history to bring here,” ex- serious about it.” ing month. Montaigne in Paris and Bond Street plained Venturini Fendi, clad in a black Venturini Fendi has been concentrat- “We decided to concentrate on getting in London, it’s bedecked in travertine, sable scarf and black Ray-Ban Wayfarers. ing on Fendi’s men’s wear for some time stronger where we already are, so we are leather, bronze and stone. “It’s interesting for people to know more and describes them as closely linked to looking at renovation rather than reloca- Located in the heart of the busy Central about us — the work, experimentation the brand’s accessories. “It’s interesting tion,” explained Beccari. district, the store is a stone’s throw away and exploration of new techniques.” because I’m a woman,” she said. “I’m One exception will be the opening of from the protests, which recently clogged Known for its lavish furs and leathers, very much attached to the idea that it’s a store in New York on 57th and Madison several of the city’s key retail districts. “I Fendi has been focusing on the greater a very masculine collection, but there Avenue with a new concept by Peter think it’s a delicate time,” said Venturini China region for some time. According to is also a touch of fun there because the Marino in late November. Fendi. “It’s not the easiest moment, but I Pietro Beccari, chairman and chief exec- monster jacket has been a big hit.” Asked how the ongoing political ten- think it’s important that we are here. It’s utive officer of Fendi, Chinese consumers Alongside working on strengthening sions in Hong Kong are affecting Mainland important that life goes on.” rank in the brand’s top-three clientele the brand’s men’s wear, she has been Chinese and local spending, he replied, To celebrate the renovation, the brand alongside Americans and Japanese. keeping an eye on Asia lately: “I’ve been “The movement here is, of course, hit- held a private dinner and opening cock- “To be honest with you, this store is watching the Korean designer Kwangho ting the business a little, but it’s already tail for the traveling exhibition “Un Art number-one for fur [sales] worldwide,” Lee. He’s very talented. In China, I adore picking up quite well after the first heavy Autre,” which landed in the city after Beccari said. “ Yo u wouldn’t expect it Ai Wei Wei. He’s not only interesting as week. Now we see traffic increasing.” stops in Tokyo and Beijing. The show as winter is not very rigid here, but the an artist, but also as a thinker.” Going forward, he said Hong Kong features 12 fur garments ranging from a Hong Kongese travel a lot and they have The brand, which has 135 units will continue to be a critical location for silk-screened Eskimo-inspired fur coat a very particular refined taste.” worldwide, is taking things up a notch the brand. “The investment in terms of a from the early Seventies to present-day In response to the interest, the brand in Asia. Last month, Fendi reopened a new concept and a larger store is for us pieces alongside accessories and a fur expanded the boutique to add a special freestanding store in Matsuya Ginza in the start of a pattern — we want local cli- atelier in which artisans will do live fur room designed with black lacquered Tokyo and about a week ago, it unveiled entele to become even bigger and more demonstrations. Curated by Emanuela walls and marble furniture. Fendi also a boutique in Seoul’s Lotte World Tower. significant for us.”

Under Armour Eyes International Growth

in overall revenues and its ap- from the 93.9 percent share in By JEAN E. PALMIERI and parel, footwear and accessories last year’s period. ARNOLD J. KARR segments. International busi- Plank said the company con- ness continued to gain trac- tinues to benefit from “the con- NINE YEARS after going public tion, with sales outside of North tinued strength of the athletic and on the verge of crossing the $3 America — aided by the launch cycle” as well as its strategy to billion revenue milestone, Under of e-commerce sites in the U.K., diversify “more evenly across Armour Inc. is planning on boost- Germany and France — more product categories and geog- ing its international revenues to than doubling to $90.3 million raphies. The best evidence of more than half the business. from $44.3 million in the year- that is in the performance of “We believe that our brand is ago quarter. our footwear and international so much greater than the $3 bil- In the three months ended businesses over the first nine lion we’re projecting this year,” Sept. 30, the Baltimore-based months of 2014,” he said. the ever-bullish Kevin Plank, marketer of performance-ori- Plank said footwear and in- founder and chief executive of- ented apparel generated net ternational have added “near- ficer, told analysts on a confer- income of $89.1 million, or 41 ly $200 million to our growth ence call Thursday. “Our inter- cents a share, above the 40-cent through the first nine months national business will still be earnings per share expected, of this year, and together ac- Under Armour has ambitious plans for its women’s business. less than 10 percent of our total on average, by analysts, and counted for 35 percent of our revenues for 2014, and we fore- 22.4 percent above the $72.8 total growth year-to-date. What’s see a day where it is at least half million, or 34 cents, reported more encouraging than the ac- of our business. Footwear will in the comparable quarter of tual numbers is the strength of tive to oversee the business, the women. The campaigns drove be less than 15 percent of the 2013. Revenues were up 29.7 the platforms we are building brand is on track to exceed $100 tremendous traffic to our e-com- business in 2014, and we can en- percent to $937.9 million from in these businesses that will lay million in revenue for the first merce site, primarily women, 70 vision that it can be larger than $723.1 million in the year-ago the foundation for sustainable time this year, he revealed. percent of which were new con- our apparel business someday. period. Analysts on average ex- growth in 2015 and beyond.” Footwear is also a bright spot sumers to Under Armour.” Our women’s business, which is pected sales of $925.8 million The company operates 80 for the company, he said, noting The company lifted its guid- over $500 million today, is still in the quarter. Gross margin in- stores around the world and that the business is expected to ance for full-year revenues to less than half the size of our creased to 49.6 percent of sales expects to add another 100 next achieve sales of more than $400 $3.03 billion from the previous men’s business, and we still be- from 48.4 percent a year ago. year, Plank said. million this year with strength range of between $2.98 billion and lieve it should be as big or big- Apparel sales were up 25.6 He noted that the company in running and basketball. $3 billion and said operating in- ger. And the opportunity and percent to $704.6 million, foot- has had the most success when Speaking of apparel’s 25.6 come, expected to grow between appetite around the world for wear sales up 50 percent to it builds its own team in inter- percent growth rate during the 29 and 30 percent, is now expect- Under Armour is abundant.” $121.6 million and accessories national markets. As an exam- quarter, Plank said the new I ed to be up about 31 percent. In the third quarter, profits sales up 32 percent to $84.9 mil- ple, he cited Europe, a market Will What I Want ad campaign Year-to-date profits rose 22.6 grew more than expected as lion. On the international front, Under Armour entered in 2006. with ballerina Misty Copeland percent to $120.3 million, or 55 the company continued to gen- North America’s share of rev- It got off to a rocky start, but by and model Gisele Bündchen “im- cents a diluted share, while sales erate double-digit increases enues was 90.4 percent, down bringing in a seasoned execu- mediately struck a chord with rose 32.7 percent to $2.19 billion. WWD FRIDAY, OCTOBER 24, 2014 9 WWD.COM Sears Sets Further Store Closures {Continued from page one} tailer, pumping more money into it and offering for Sears Canada that is expect- lion in liquidity. Sears’ chief financial of- It wasn’t clear from survey checks cutting more deals. ed to raise up to $380 million, a short- ficer Rob Schriesheim has said that “over what that number could be, but the latest But the retailer continues to sink. For term $400 million loan from Lampert’s the next six to 12 months, it intends to store closures are on top of the 75 Kmart the second quarter ended Aug. 2, the net hedge fund ESL Investments and the evaluate its capital structure” and could stores and 21 Sears sites shuttered in the loss widened to $573 million, versus a net take further actions as needed. first half of this year. When the company loss a year ago of $194 million. On an ad- For Lampert, it is all part of his grand posted second-quarter results in August, justed basis, the net loss was $313 million Edward S. plan to be a retail visionary. He said in it said it would close up to 130 stores this compared with a net loss of $78 million Lampert the January blog that he has been work- year. Sources familiar with the stores last year. ing on a “major transformation of Sears that are closing said they are either un- Sears operates 1,870 stores, according and Kmart,” which reflects the changes derperforming locations or are leased to a quarterly report with the Securities in consumer shopping patterns. Lampert sites that are about to expire. Many are and Exchange Commission. That’s a 45 also said, “The consensus about de- also outdated and dilapidated sites, one percent drop from the 3,400 stores in op- creased store traffic also highlights an- contact said. One individual said more eration for the year ended Jan. 28, 2006. other decision that has steered our work: closures are on the way, while another Lampert’s Kmart Holding Corp. acquired We very often need less space to serve said the current batch in liquidation Sears, Roebuck & Co. in 2005 in a deal our members better and we may need were planned earlier this year, with af- valued at $11 billion, and the new firm fewer locations as well.” fected store associates and managers no- was renamed Sears Holdings Corp. When Lampert’s focus has been increasing tified weeks in advance of the scheduled the company reported fourth-quarter re- FEANNY/CORBIS in customer service at the locations in closing. A third contact confirmed that sults on March 15, 2006, nearing the first operation, as well as the technology to layoffs are solely at the store level, and anniversary of the merger, Sears’ stock NAJLAH fuel an online and mobile customer. that there is no reduction in headcount was trading at $132.29. BY For Wall Street, it may not matter

at company headquarters. Lampert’s financial moves to shore up PHOTO whether it’s a liquidity issue that gets While Wall Street cheered the store the retailer’s balance sheet during the kicked down the road or a rebalancing closures and resulting job cuts, the holiday selling season amid rumblings of leasing arrangement for seven Sears of the brick-and-mortar presence. Either long-term benefit to Sears remains to be a high cash-burn rate include a rights of- sites to house Primark stores. way, one course of action is certain: seen. Lampert has been scrambling over fering for Sears’ common stock to raise Following the financial moves so far, There will be undoubtably more store the last few weeks to shore up the re- up to $625 million in proceeds, a rights the retailer will have generated $2.07 bil- closures ahead. Puig Fetes 100 Years at Barcelona Event FASHION SCOOPS

ever since been associated with coziness and calm. By MILES SOCHA For Carolina Herrera, that comfort trigger is ROSIE ON A ROLL: Rosie Huntington- brand ModelCo. “I’m busy at the jasmine, which grew in the garden outside her Whiteley is putting a fashionable moment. It’s good. Life is really BARCELONA — Is Shakira, five months’ preg- bedroom window when she was growing up in spin on the term “busybody.” good.” nant with her second child, ready for something Venezuela. “It’s a very happy memory from my Hot off the Balmain and Huntington-Whiteley even other than maternitywear? childhood,” she said. Givenchy runways at Paris had time to host a dinner at “I’d love just regular blue jeans, size 25, hope- More recently, the New York-based de- Fashion Week, the model- the Sunset Tower Hotel on fully,” she said with a laugh as she strode into signer encountered a woman on the street in turned-actress is readying the Wednesday with e-commerce Puig’s 100th anniversary gala Wednesday night, Manhattan whose countenance — and perfume release in May of her second site Forward by Elyse Walker. wearing a silver Zuhair Murad jacket, stretchy — summoned memories of her grandmother. film role, in “Mad Max: Fur y Liberty Ross, Abbey Lee Kershaw black underpinnings and extremely high platforms. The scent was Caron’s Fleur de Rocaille. Road,” costarring Charlize Theron and Cher Coulter were among the Sensible shoes were not even a consider- As a little girl, Eugenia Silva would watch and Tom Hardy. Also keeping the guests who came to celebrate ation. “Over my dead body,” she said. “I’m the her mother getting dressed for a party and blonde Brit busy this fall is work designer Anthony Vaccarello, type that goes into the operating room with spritzing on Paris by Yves Saint Laurent. “So on her new lingerie line for whose label retails on the site. makeup on — against doctor’s orders. glamorous,” she said. Silva is heading to New Marks & Spencer, called Rosie Raising her glass to the “He’s the problem,” she added about her foot- York with her five-month-old son for a raft of for Autograph. Italian-Belgian designer, wear choice, looking up at her strapping hus- modeling assignments through Christmas. “I’m off to London next week Walker’s toast praised band Gerard Piqué, a soccer Other guests included because I’m doing more shoots Vaccarello’s elevated and refined player with FC Barcelona. models Harley Viera- pieces. “We just can’t get “He’s just too tall.” Gerard Piqué Newton and Malena Costa; enough of them,” she said. and Shakira Abbey Lee Kershaw and The singer was among a fashion executives Stefano Rosie Huntington-Whiteley “Anthony has taken sexy to host of VIPs, retail bigwigs, Sassi of Valentino and a whole new level.” master perfumers and brand Prada Group’s Carlo Mazzi; — REBECCA DANCER executives who descended on retail executives Patrick this Spanish city Wednesday Chalhoub, Sephora ceo TOPSHOP OPENS UP(TOWN): night for the “closing cere- Christopher de Lapuente Topshop Topman will monies” of the fragrance and and Averyl Oates of go big on Nov. 5 when it fashion group’s anniversary Galeries Lafayette, and unveils its largest U.S. festivities. perfumers Alberto Morillas, flagship and second store Almost Olympian in scale, Emilie Coppermann and in New York, on Fifth the evening opened with a Carlos Benaïm. Avenue and 49th Street. multimedia presentation in TORRES ÁNGELES MARÍA Back at the gilded opera The company is looking to the Gran Teatre del Liceu house, rigged with a chin generate buzz in advance

and climaxed with a cock- BY PHOTO microphone, Marc Puig of the opening through tail, dinner and dance party roamed the stage and intro- giveaways and a New at the former Hospital Sant Pau, billed as the duced a series of video clips that recounted the York-centric social media largest Art Nouveau complex in Barcelona and history of the family-owned business, which has campaign: #UNLOCK5th. a UNESCO World Heritage site. flourished in the past decade and garnered an 8.6 To spearhead promotion Retired Australian rugby player Nick percent share of the prestige perfume business. of the hashtag, the retailer Youngquest, he of the toned pecs and bulging “It’s our chance to brainwash you. The good has tapped five “style biceps in the Invictus perfume commercials for thing is this only happens every 100 years,” he leaders” from different Paco Rabanne, strode into the party in a black said, prompting a round of chuckles. areas of the city: Julia Hugo Boss suit and had everyone clamoring for He and his cousin, vice chairman Manuel Restoin Roitfeld, Hailey a selfie with him. Puig, paid homage to the second generation of Baldwin, Kate Foley, Adam Like Shakira, he also errs on the chic side family members — Antonio, Mariano and Jose Gallagher and Holy Ghost. and recently took to Twitter to condemn track- Maria — who gathered on stage and received a Using video and photo suit pants in public. standing ovation. content, each leader will Here’s the backstory: “I’m boarding a plane Puig’s anniversary activities began in April tout what Topshop and from Amsterdam on a Sunday afternoon and with 1,200 employees gathering in Barcelona New York City means to I swear, 75 percent of the passengers were in for the unveiling of its tower and an Assouline them. Launching next track pants,” he said incredulously. tome titled “100 Years of a Family Business.” week, the campaign will Now based in New York and modeling for News of the milestone even reached small run up until the store’s SARDELLA/GETTY IMAGES several brands, Youngquest is also finishing his fishing villages. Marc Puig related that he ran opening business degree online. into one of his senior executives in one such vil- FOR MORE date, when DONATO SCOOPS, SEE Paco Rabanne, after stopping to sign an au- lage and met his 10-year-old son, who was stu- Topshop’s BY tograph outside the Liceu, said he’s nonplussed pefied at the encounter, explaining his silence WWD.com. chief executive by the recent comeback of Sixties fashions. later to his father: “He looks so young for some- PHOTO officer, brand “Fashion works on 15-year cycles. Everything one celebrating his 100th birthday.” ambassadors comes back,” he shrugged. Puig said he, Manuel and the management for my line,” said Huntington- and style During his presentation at the gilded opera team are “preparing the fourth generation” and Whiteley, who also recently leaders will officially open the house, Puig chairman and chief executive officer stressed the company in the future would be green- released her ad campaign doors to over 40,000 square feet Marc Puig talked about how his grandfather wore er and more socially conscious, pledging 10 million for Moroccanoil and inked a of retail space. a lavender-scented shampoo — a scent that has euros to be dispensed in the first quarter of 2015. contract with Australian beauty — KRISTEN TAUER 10 WWD FRIDAY, OCTOBER 24, 2014

Andrew Garﬁeld in Dior Homme and Joshua Jackson Miss with Taylor Kitsch in October Prada.

LILY ALDRIDGE was stalking an models who appeared in the Upper East Side restaurant on then-risqué pages of Playboy Wednesday night like it was from 1954 to 1979, women who the Playboy Mansion. in more ways than one paved A Victoria’s Secret the way for the likes of Spider-Man, Pacey Angel, she’s used to Aldridge to strut around striding confidently in expensive lingerie Zachary Quinto everywhere she and sexy angel wings. And Riggins and Andy Cohen goes, but there was In her portrait, the something else in her older Aldridge looks step this time. She had indomitable, the picture WHO SAYS nice guys finish muscles, while a very bearded became a bit less courteous. “It’s swagger. Maybe it of Mrs. Robinson in last? Nobody at GQ, which Garfield posed for pictures not glamorous,” said Garfield was what she was a corset and black honored the charitable work before ducking inside. said of working with Worldwide wearing. In her stockings. of Andrew Garfield, Taylor Kitsch, Jackson, Pacey in “Dawson’s Orphans and the Youth Mentoring silk burgundy “I’m so proud Joshua Jackson, and Zachary Quinto Creek,” being honored for his Connection while accepting his smoking jacket, of it. She’s a Wednesday night IAC. work with Oceana, was award. “It’s heavy s--t.” Aldridge beautiful woman,” The gentlemanly last to arrive, and shared Unsurprisingly, it was recalled the the famous factor was certainly in ye his own rules of what it Riggins (er, Kitsch) who one- bearing of a daughter said effect on the rain-soaked e means to be a gentleman. upped Spiderman in the very smooth during a Barneys red carpet, where the “Chivalry is part of being obscenities category. “The way player, the most New York dinner honorees were on their a gentleman, but I don’t to make a difference is through famous player at The East best behavior. Kitsch, think being composed action,” Kitsch said. “Just do it, of them all. Pole. “I found an early arrival, dressed up for at all times is gentlemanly,” he take a risk and go forward. And JOHN AQUINO “It’s very Hugh out [about the the occasion, donning a Prada explained. “Sometimes you need whoever’s trying to pull you Hefner-ish,” she centerfold] when suit that would have been out to be outraged by things. I think down, f--k ’em.” said knowingly. I was 12. She had of place on the football fields that’s part of being a man. There — LAUREN MCCARTHY Before she to break the news of “Friday Night Lights.” “I’m are certain things ever stomped to me. I thought a big fan of them,” he said. But that you shouldn’t the runways of it was awesome. fear not, Tim Riggins fans, that stand by that you Terry Crews Victoria’s Secret, Those issues from signature greasy mop of hair witness.” That it was Aldridge’s the Seventies was still intact. Kitsch was being said, Jackson mother, Laura are so iconic recognized for his work with the was about to Aldridge, née and elegant.” African Children’s Choir, but he perform quite the Lyons, who first In fact, a lot of was quick to note that he himself gallant gesture by posed for a those issues are was not a professional singer. flying out to visit

camera. In her STEVE EICHNER all over their “I honestly wish I was a singer,” girlfriend Diane prime, she was family home he said. “I have some amazing Kruger in Paris Miss February still. “I’ve always musician friends and I live for the weekend. DIMITRIOS KAMBOURIS/GETTY IMAGES FOR GQ; CREWS BY 1976 in Playboy. PHOTO BY been a huge fan vicariously through them.” His “That’s pretty Mom, now 59, of the Playboy of genre of choice? “Eddie Vedder is nice, if I do say so was back in the game that era and I still am. probably number one for me, but myself,” he said. for a photo portfolio She’s still so proud I go all over.” As the wine that appeared in New of it. I’m glad she got Further down the carpet, and whisky began York magazine earlier Lily recognized,” she Crews did his gentlemanly duty ﬂowing, the this week celebrating Aldridge continued. by appeasing photographers’ honorees loosened — ERIK MAZA

the trailblazing requests to ﬂex his pectoral up and sound bites GARFIELD AND QUINTO PHOTOS BY

Champagne and compliments so adorable,” she said of Katie Reese Witherspoon from their celebrity fans, the Lowes and Bellamy Young. “Being in Oscar de la Renta likes of January Jones, Dakota in New York we normally get with Diane von Johnson, Camilla Belle, Dianna a press release when someone Furstenberg. Agron and Jaime King. wears our clothes, but it’s “I got to meet Lou Doillon so different being here and and Milla Jovovich. Milla hearing from them.” was one of my ﬁrst fans Witherspoon was by far when I did my kids’ the biggest fashion fan brand. We’ve had a there and she said she relationship over e-mail actually chose her de la for six years and today Renta frock a week ago. was the ﬁrst day “It is sort of poetic that today we’re talking FOR MORE PHOTOS, SEE about Oscar and honoring him,” she WWD.com/eye. said, before adding, “It’s so great be here and catch up with we’ve actually friends I haven’t seen in met,” said Roche of so long. It’s like fashion

IMAGES FOR CFDA/VOGUE JEFF VESPA/GETTY the eight-months- is half of my life. The Jaime King and pregnant actress. other half is movies.” Dakota Johnson Taylor was tickled Of her busy

PHOTOS BY to see actress Gillian Hollywood season with Jacobs in a printed a starring role in “Wild” her travel schedule and de la dress that matched and producing the hit Renta’s death. the one she had “Gone Girl,” she said, “I All About Oscar Brett Heyman of Edie Parker, chosen to wear didn’t expect all these Eva Zuckerman of Eva Fehren, herself. “She’s movies to be coming THE CFDA/VOGUE Fashion Reese Witherspoon honored the Gigi Burris of Gigi Burris so happy about out at once. Diane Fund ﬁnalists took their show late designer by wearing one Millinery, Natalie Levy and Grant fashion. She posts was so supportive and on the road for their annual Los of his designs, a hand-painted Krajecki of Grey Ant, Matthew, pictures, she’s helpful; she just said Angeles runway presentation silk faille dress — and later Alex and Samantha Orley of actively engaging to me, ‘I hope you feel at the Chateau Marmont. On the CFDA chairman segued Orley, Daniel Corrigan and Jake designers, it’s cool. empowered,’ and I said, Tuesday, Diane von Furstenberg into a celebration of fashion. Sargent of Simon Miller, Paul And I’m a huge ‘Well, I feel empowered started the event with a tribute Anna Wintour missed the event Andrew, Ryan Roche, Tanya Taylor ‘Scandal’ fan and Michelle Monaghan when you say it to me.’” to Oscar de la Renta — cohost this year in part because of and Wes Gordon reveled in the those ladies look in Suno. — MARCY MEDINA WE’RE HIRING. (YES, YOU READ THIS CORRECTLY)

– WWD Deputy Fashion Editor – WWD Beauty Sales Director – WWD Beijing-Shanghai or Hong Kong Reporter – WWD Sales Coordinator LA – WWD Street Style Reporter/Editor – WWD Sales Integrated Marketing & Research Specialist – WWD Eye Reporter NY – WWD Digital Sales Account Executive – WWD Eye Reporter NY/LA – WWD Creative Specialist, Advertising Sales – WWD Accessories Reporter/Editor – Summits Attendee Sales Manager – WWD Brazil Beauty & Fashion Reporter – Summits & Events Sponsorship Sales Director – WWD Silicon Valley-San Francisco Reporter – Brand Strategy & Social Media Director (Fashion-Tech-Commerce) – Summits & Events Experience Director – WWD Activewear Swimwear Reporter – Summits & Events Marketing Director – WWD Men’s Wear Reporter/Editor – Event Creative Director – WWD West Coast Fashion Editor – Summits & Events Manager – WWD Copy Editor – Designer InfoGraphic Specialist – WWD Wearable Tech Reporter – Sales Marketing Designer – Financial Analyst – Summits & Events Lead Designer – FN Business Reporter – Summits Art & Design Director – FN Athletic Reporter – Assistant Manager, Consumer Marketing – FN Europe Editor – Director Corporate Sales, Consumer Marketing – FN Admin/Edit Assistant

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Fairchild Media is growing. We’re looking for talent across our organization. If interested, contact: [email protected] Indicate the job you are applying for in the subject line or you will not be considered. 12 WWD FRIDAY, OCTOBER 24, 2014 WWD.COM

subject will respect it and respond and won’t take offense.

WWD: OK, well, here’s mine: There are Fox News’ Chris Wallace many examples of journalists whose its own videos and pictures. The fact is, the news outlet, often you’re forced to go parents were in the business that By ALEXANDRA STEIGRAD when I covered Reagan, the Internet on the air and report before you have time end up finding success through those didn’t exist. If they wanted to get a picture to digest all the facts, and to think about connections. How do you view nepotism CHRIS WALLACE is the host of “Fox out, they had to give it to the networks or what they mean. Most of the people in our in the media industry? News Sunday.” Celebrating 50 years in the newspapers because that was the only business do it very well. When I was in the C.W.: Oh, I think like any business, if you the media, the 67-year-old Wallace began way it was going to get out to the public. field working at NBC covering the White know people and if people know you, it his career as Walter Cronkite’s assistant. Now, they can take a picture or video of House, there were only two shows you may get you in the door, but I certainly don’t The son of “60 Minutes” reporter Mike the president doing something and get it were worried about. There was the “Today” think it lasts very long. This is a business Wallace, he has served as coanchor of out to the public on their own. show in the morning and “NBC Nightly where what have you done for me lately is the “Today” show, NBC’s chief White News” in the evening. You had plenty of an understatement. It’s what have you done House correspondent, moderator of WWD: How has journalism changed from time over the course of the day to talk for me this minute? What have you done “Meet the Press,” anchor of the Sunday 50 years ago? to people and get different perspectives for me in the last 30 seconds? You can’t edition of “NBC Nightly News,” senior C.W.: It’s completely different because the and do the real editorial process. Now, build a career on that. Do I think it helped correspondent for ABC’s “Primetime platforms are different. When I started oftentimes, you’re going from one show to me get my first job? Yes. My second job? Thursday” and occasional host of out as a 16-year-old high school senior, the next, doing stand ups. It’s hard. Probably not. Fifty years? Absolutely not. I “Nightline.” He joined Fox News in 2003. it was a very hierarchical system. There think that’s generally true for the sons and Here, Wallace talks about the were three networks, a half dozen major WWD: How do you view Yahoo’s endeavor daughters, you have to prove yourself. looming elections, journalism, George newspapers, and that was about it. There with Katie Couric as global anchor? Can Clooney and more. was a very small universe at the top of the Internet broadcast news succeed? WWD: Do you think it’s possible to be an pyramid. Now, it’s much more diffuse. I C.W.: I don’t know. I’m interested as a unbiased journalist? WWD: The midterm elections are a few don’t think that’s a bad thing. A thousand content provider in any venues that are C.W.: There’s no such thing as perfectly weeks away. How do you see the race flowers bloom — and the idea that there out there that are going to provide more objective journalism, but I do think you shaping up? are more avenues to get out information Chris Wallace: Republicans have slim and more platforms for reporters to leads in most of the key states they need give information and more to flip to take control of the Senate. But competing views out there, so far, their leads are within the polling on the one hand, it allows you margins of error. And this does not look to have access to a lot more like a “wave” election, where one party perspectives. The flip side is MEDIA runs the table. Turnout is always key it puts the burden on the news in a midterm election. And despite a consumer to be more informed PEOPLE proven edge in the ground game in 2012, and to be able to distinguish

I doubt Democrats can turn out Obama between a legitimate news source with a voters when Obama is not on the ballot. serious news process as opposed to a blog Overall, I give Republicans a small where there is some guy in his pajamas in advantage in picking up a net of six his mother’s basement. seats and taking control of the Senate. And they could flip as many as eight WWD: Coming from the TV world, how

seats. But I wouldn’t be shocked if the do you view native advertising in print Democrats hold onto the Senate. publications? Do they do a disservice to the reader? WWD: Are you seeing a shift in political C.W.: I’m quite troubled by it. When I leanings in the U.S., and if so in which started at the Boston Globe in 1969 there direction? was an absolute firewall between the C.W.: I’m not quite sure whether it’s a news side and the’’ business side. They shift of ideology or of personality. I think largely didn’t even talk to each other, in 2008, people were pretty fed up at the and that was at the express order of the end of eight years with President Bush. publisher of the Boston Globe. Anything They were unhappy with the way the Iraq that blurs the lines and particularly content — it means more jobs and more can try as hard as possible to be unbiased, War had gone, they were very unhappy anything that would confuse the reader opportunities for me and my colleagues. to be objective and more importantly, with the situation in the economy. In or listener or viewer into thinking When I was at ABC — we put up video on to present, if not all sides, at least the 2008, you saw Obama win and you saw big that something was objective editorial our Web site — I used to do some five-to- main sides of an argument, to allow the Democratic majorities in the House and content when in fact it is advertising, eight minute magazine pieces that we put viewer or the reader to make up their Senate. I don’t know whether that was the is just misleading. That’s just about the on abc.com. I think it’s hard to get people to mind. When I go in and do a story, I’m not country turning to the left and becoming worst thing you can do in our business. sit still for long interviews or other content. thinking what’s the conservative angle to more liberal, or just that they were just the story or what’s the liberal angle to the fed up with Bush. This time, I think it’s WWD: What about brand extensions as a WWD: What did you learn from your story? That said, if you and I covered a possible that you could see Republicans way to support a struggling publishing father about being a good journalist? story, we might do it differently. score a big victory. I’m not sure if that’s business? C.W.: It’s interesting because people think because the country has turned more of my father now looking back at his WWD: What do you read and watch for conservative or if people are increasingly career as this great superstar, but that pleasure? fed up with Barack Obama’s presidency wasn’t how he started and it isn’t how C.W.: I love “Mad Men.” I’m a late convert There’s no such thing he felt about his career. Growing up he but a devout convert to “Breaking Bad.” WWD: Many journalists have said that the had a complexion problem and he was I like “Boardwalk Empire” and “Masters Obama administration has given less access as perfectly objective sensitive about that. He was insecure of Sex.” For comedy, I like “Modern to the press than previous administrations. because he came to CBS News late in Family.” I always like to have a book on Have you experienced that? journalism, but I his career. He didn’t feel he was blessed my bedside table. Right now I’m reading C.W.: Some of the criticism is legitimate with great innate talent — although I did a book called “The Boys in the Boat.” It’s and some of it is a failure to understand think he had it — he thought he had to about the U.S. crew team that rowed in the changing dynamic. I think this is do think you can try work harder than anybody else. He was the 1936 Berlin Olympics. It’s about how a White House that takes things very fiercely competitive. He felt he had to they rowed for personal glory. personally, that is thin-skinned. The White as hard as possible to be better prepared. One thing he used to House I covered most in depth was the say to me about interviews was, “You’re WWD: Are you interested in fashion? Reagan White House. I covered it for six be unbiased. never going to know as much about the C.W.: I thought Amal [Alamuddin] looked years. I think the White House reflects person you’re going to be interviewing.… beautiful. I’m a friend of George Clooney’s. the personality of the president. To a — CHRIS WALLACE But you can know enough that you can certain degree all the officials tend to act make it pretty clear to the person very WWD: Did you go to the wedding? the way they feel the president would quickly that they can’t spin you.” C.W.: No I did not, unfortunately, but I act. The Reagan White House was pretty C.W.: I fully understand, especially on He was a deep believer in have gone to his villa in Lake Como, and thick skinned. Reagan understood from the print side, the constraints of the preparedness and research, in hard we e-mail each other. I have to tell you, Hollywood that just because you got a business and the fact that it’s getting work. He used to say to me, if he were to it’s been very sweet because he’s been bad review today, it was not personal. The harder to make the bottom line work. pick out the single key quality that made gushing about Amal like a love-struck person didn’t like the movie. You could But to stay alive you can’t do anything to people successes or not, it wouldn’t be teenager. He really has. I like fashion, remain friendly with the critic. Chances compromise your journalistic integrity natural talent, it wouldn’t be intelligence, too, and my wife really likes fashion. were, if he liked your next movie, he’d give whether it’s ads that pose as editorial it would be energy and persistence and We were talking about what she [Amal] you a good review. That was the reaction content or these conferences, which I drive. I think that’s how he led his career. wore. She was pretty darn stunning. of that White House. This White House think sometimes can leave a publication That was instilled in me. is much more thin-skinned, much more or a news source beholden to the WWD: Who makes your suits? unhappy with criticism, and much less officials that they get to speak and that WWD: Your father was notoriously good C.W.: Fox has a deal with Hickey open to critics, or even to tough reporting. they raise money off of. ’’I think anything at asking tough questions without Freeman. Almost all of the on-air people like that is dangerous. flinching. Did he teach you how to do at Fox wear Hickey Freeman. Before I WWD: You’d mentioned the changing that? How do you do it? had a deal with Fox, I used to get them dynamic. Please elaborate. WWD: What are the challenges facing C.W.: I think you have to be polite and myself. In terms of ties I like Hermès and C.W.: Regarding access, I think some of broadcast today? respectful. You can’t be antagonistic and Zegna. In terms of casualwear I really that is not understanding the times. One C.W.: One of the challenges, particularly like you’re going in looking for a fight. like Ralph Lauren. There’s something of the things they [reporters] are upset for 24-hour cable news, is getting enough In my time asking questions, if you ask it about putting on a Ralph Lauren polo about is that the White House puts out time to report and to think. Regardless of in a polite, respectful way, the interview shirt that makes you feel great.

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