▲ RETAIL: NEWS: J. Crew’s Burberry new : wary Collection Donatella about store, third page 4. Versace to show quarter, in , page 2. page 2. FINANCIAL: What goes up comes down as shares fall, page 10. WWDWomen’s Wear Daily •WEDNESDAY The Retailers’ Daily Newspaper • October 15, 2008 • $3.00 Fete Accompli John Galliano knows how to have a good time. And, although he kept the runway theatrics to a minimum for spring, there was still plenty to celebrate, including a parade of hot-to-trot party . Here, a ruffl ed, off-the-shoulder version, worn with a cartoonish chapeau. For more fun frocks, see pages 6 and 7.

Kellwood’s Makeover: Hollywould for Sale, CEO Refocuses Group By Whitney Beckett Michael Kramer is building the “New Kellwood.” Since Sun Capital Partners Inc. acquired the St. Louis-based vendor in February and subsequently tapped Kramer as chief executive officer, Kellwood has slimmed down to just shy of $1 billion in wholesale volume, compared with the $1.6 billion in revenues prior to the takeover. And it’s not done slimming down yet: Kellwood has revealed plans to sell Hollywould, the small, high-end contemporary brand the group bought in 2006. Kellwood is in the early stages of examining strategic alternatives, and declined to disclose how much it is asking for the brand, which sources peg at less than $3 million in wholesale volume, but which Kellwood had said earlier See Kramer, Page 8 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY 2 WWD, WEDNESDAY, OCTOBER 15, 2008 WWD.COM Burberry Revenues Surge 20% in Half derlying basis in the second half, with licensing WWDWEDNESDAY By Samantha Conti Sportswear revenues in the full year slightly down. LONDON — Burberry’s revenues soared 20 per- Ahrendts said the company would continue FASHION cent in the first half, but the company is prepar- to focus on its products and strategies to drive 6 Designers got the party started for spring with an ing itself for a challenging third quarter. long-term growth. Stripping out the positive cur- array of fl irtatious cocktail dresses distinctively Sales in the fi rst six months to Sept. 30 rose rency impact, Burberry’s underlying revenues beaded, embroidered or patterned. to 539 million pounds, or $1.04 billion, from 449 rose 13 percent in the period. million pounds, or $899.5 million, the previous The fi rst-half results beat Citi analysts’ expec- GENERAL year. All fi gures have been converted at average tations by 3 percent, refl ecting a stronger-than- exchange rates for the respective periods. expected wholesale performance. Retail fi gures 1 Kellwood Co.’s new ceo, Michael Kramer, hired Burberry chief executive officer Angela were in line with Citi’s expectations, while li- by Sun Capital two months ago, aims to steer a Ahrendts said Tuesday she expects trading censing was worse than expected. leaner and more profi table company. conditions to remain “volatile and uncertain” Burberry’s second-quarter revenues rose 16 3 Despite strong economic headwinds, P&G’s for the crucial third quarter, the run-up to the percent to 328 million pounds, or $634.4 million, growth strategy remains on course, chairman and Christmas season. from 321 million pounds, or $643.1 million. ceo A.G. Lafl ey told shareholders. In addition, the company said wholesale rev- In the fi rst half, retail revenues rose by 21 per- enues are expected to be broadly fl at on an un- cent, driven by sales of outerwear and accessories, 4 The fi rst J. Crew Collection store discreetly and by growth in all regions except for Spain. opened on the corner of Madison Avenue and Growth also came from a 13 percent increase 79th Street, featuring its most expressive styling. A Burberry look in new store space, as well as an increase in same- Marni and Dsquared are opening stores this for spring. store sales. Store openings included Bellevue, 9 Wash.; Burlington, Mass., and Budapest. month in markets outside Italy, in Spain and Hong The best-performing region in the six-month Kong, respectively. period was the U.S., followed by Europe and Asia. 10 Retail’s respite from stock market declines lasted Spain remains a diffi cult market because of a day, as investors pushed shares down 4 percent low consumer confi dence and a poor economic on worries about consumer spending. environment, Burberry said. In the fi rst half,

sales were down 20 percent, and the second half ▲ 13 WEST: Bangles, bright colors and a gold medalist of the year will show no improvement. Spain is were elements apparel fi rms at the Los Angeles one of the company’s largest markets, along with Majors Market used to lure beleaguered buyers. the U.K., U.S. and Japan. Classifi ed Advertisements...... 14-15 Meanwhile, wholesale revenues climbed by 23 percent, the company said, due to more on- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS time deliveries, thanks to an improving supply [email protected], USING THE INDIVIDUAL’S NAME. chain and growth in the U.S., Europe and emerg- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. ing markets. VOLUME 196, NO. 80. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with Sales in the U.S. and Europe grew by more one additional issue in January, October and December, two additional issues in March, April, May, June, August and than 20 percent, while sales in emerging markets November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services grew by more than 50 percent, with particular provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. strength in , Russia, the Middle East and Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice Eastern Europe. Licensing revenues were fl at. President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post In the second half, selling space is expected Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B to increase by 12 percent year-on-year. Although 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA wholesale sales will grow in the U.S. and emerg- 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please ing markets, they are expected to decline in write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed Spain, due to the economic climate and the on- within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S going closures of independent retailers there. WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 Meanwhile, licensing revenues are expected or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened to be slightly down in the second half, refl ecting companies that offer products and services that we believe would interest our readers. If you do not want to receive “a modest softening” in demand in Japan and these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call lower output of certain global licensed products. 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, The company will release full interim results, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, including profi ts, on Nov. 18. PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. DAILY Versace China Show to Aid Charity “I wanted to go to his By Luisa Zargani Donatella QUOTE show so bad, but his MILAN — Versace is planning its first fashion Versace in a show in China — and for a good cause. Versace/One publicist said they weren’t allowing The show, followed by an auction and a Foundation dinner, will be held next month in Beijing as logoed T-. any celebrities to attend. So I said, part of a new charity fund-raiser supported by Donatella Versace. The Versace/One Charity ‘Consider me a normal person then!’ Gala will benefi t the Jet Li One Foundation. The Italian luxury goods house and the foundation But they wouldn’t. have established a yearlong partnership to open ” children’s centers for post-trauma and psycho- — Lindsay Lohan, on being turned down logical relief in China’s Sichuan province, which by Alexander Wang. Page 4. was hit by a devastating earthquake in May. Donatella Versace will attend the gala on Nov. 13. The show, presenting Versace’s spring 2009 women’s and men’s collections, will be held in a TODAY ON newly developed luxury area, the , located next to Tiananmen Square and the Forbidden City. The quarter once housed the American Embassy to the Qing Empire, was later the Dalai Lama’s residence during the Fifties and even hosted secret meetings between Henry Kissinger and Premier Zhou Enlai in 1971. WWD Chinese-American developer Handel Lee, who also backed ’s successful Three on .COM project, recently has taken over this area and is developing it with a mix of shops, art items will be exclusively available at Versace bou- • Back in Time: galleries and restaurants. tiques in Mainland China, and the fi rst pieces will How designers coped In November, the first Versace/One go on sale the day after the charity event. There with the lean Nineties Foundation Children’s Centre will open in are 18 Versace boutiques in Mainland China, ex- • Coverage of L.A. San Jiang, in the Sichuan area. Proceeds from cluding Hong Kong. The fi rst Versace boutique the event will be donated entirely to the One there opened in Shanghai in 2005. Fashion Week Foundation charity to help open additional chil- Earlier this year, Versace chief executive offi cer • More photos of the dren’s centers in the territory. Giancarlo Di Risio said the company plans to in- Marni store and Donatella Versace has designed a Versace/One vest about 45 million euros, or almost $70 million, Bobbi Brown book launch Foundation logo that will be featured on a range to open 11 stores in 2008, mainly in Asia, further of limited edition merchandise that the designer tapping a market it hopes will replace the U.S. as • WWDBlogs will introduce in her collections for one year. The its second largest in terms of sales after Europe. Marc Jacobs frolics with his pups. • Global breaking news WWD, WEDNESDAY, OCTOBER 15, 2008 3 WWD.COM California Fires Stoke Retail Worries P&G Maintains Growth Focus

By Rachel Brown Traffi c snakes up a road as residents By Molly Prior CALIFORNIA RETAIL, APPAREL fl ee homes in the San Fernando Valley. DESPITE STRONG ECONOMIC HEADWINDS, PROCTER & and beauty firms were bracing for Gamble Co.’s growth strategy remains on course, chairman the fallout from wildfires that swept and chief executive officer A.G. Lafley told shareholders dur- across Los Angeles’ San Fernando ing the company’s annual meeting Tuesday morning. Valley and San Diego-area communi- “Last year, I told you P&G is designed to grow,” he said, ties Tuesday. acknowledging that at the time few could have predicted the Marie Patterson, co-owner of Naya economy’s current beleaguered state of high gas prices, rising Fresh Body Spa in Chatsworth, which unemployment and declining retail and auto sales. “I am as closed Monday and opened Tuesday confi dent today as I was a year ago,” said Lafl ey, adding that for part of the day, said the eco-spa while it’s more diffi cult to grow and sustain growth today than was “dead” as a result of the fi res. it has been in many years, P&G’s fundamentals remain intact. Patterson said the fi nancial crisis He told those in attendance that P&G’s long-term growth had already hurt her high-end cus- drivers include its portfolio of leading brands, focus on tomers, and she expected the fi res to creating consumer value, cash and cost management dis- add to their concerns. cipline and mission for devel- “It will impact the short term oping innovation that “delights because my direct community has the customer.” been devastated, and those people “While the economic environ- are not going to be able to come in ment remains volatile and un- for their regular appointments be- certain, I am confi dent that P&G cause they are going to be worried can and will continue to prosper about insurance claims and their over the long term,” said Lafl ey. homes,” she said. “All the luxuries “We are committed to ensuring go out the window.” P&G will continue to be a com- The fi res, which are stoked by fe- pany you can count on.” rocious Santa Ana winds, come at a He noted the P&G portfo- precarious time as the biggest U.S. lio includes 24 billion-dollar market struggles with rising unem- brands, which range in size from ployment, tepid consumer spending, $1 billion to $8 billion. “These a $3 billion state revenue shortfall brands are all built to last for and other troubles amid global eco- decades — through and beyond nomic turmoil. any economic cycle,” said Lafl ey. A.G. Lafl ey “The mood is sour — putting it “P&G has a portfolio of brands mildly,” said Jack Kyser, chief econ- AP PHOTO/DAN STEINBERG PHOTO BY consumers rely on every day,” for laundering clothes, baby omist at the Los Angeles County care and personal care. “These are needs that don’t go away.” Economic Development Corp. “If you are in the immediate area [of the fi res], it would impact you. If The company competes in 22 consumer products catego- you don’t live in the immediate area, you it closely, and it is another thing going on in this crazy, ries, and ranks number one or number two in two-thirds of topsy-turvy world.” those categories, according to Lafl ey. Large retailers in the fi re-stricken communities include Wal-Mart, which has a store in the He told shareholders the company’s cost discipline helps Porter Ranch Town Center, and J.C. Penney, which has a unit in the city of San Fernando. Mall op- fund its research and development efforts. “Our discipline en- erator Westfi eld has three properties in the San Fernando Valley — Westfi eld Topanga Plaza, Westfi eld ables us to invest in the business even when the external en- Promenade and Westfi eld Fashion Square — that it said were largely unaffected. “We are monitoring vironment is challenging.” He added that the company invests because…things can change quickly,” said a Westfi eld spokeswoman. $2 billion annually on innovation, about twice the amount of A state of emergency was declared in Los Angeles and Ventura counties Monday. its nearest consumer products competitor, according to P&G. Even in areas that were not evacuated, train service disruptions and highway closures kept customers “Innovation is our lifeblood,” he declared. from shopping and employees from reporting to work. Lafl ey reminded shareholders of P&G’s steady perfor- “It is going to be a fi nancial burden for everybody that this is happening right now,” said Pablo Solis, mance: “Your company has grown consistently for decades.” owner of Jim’s Western Wear in Chatsworth, about 3 miles from the fi res. “Their focus is going to be on He pointed out that the company’s sales have nearly doubled other things besides .” for each of the past three decades, from $10 billion in 1980 to more than $80 billion today. During the meeting, shareholders voted against a proposal to allow shareholders an advisory vote on executive pay as well as a proposal to rotate the site of the annual meeting from the com- Baugur Says No Bankruptcies Planned pany’s headquarters in Cincinnati to other major U.S. cities. By Nina Jones have no plans to place our U.K. businesses into administration.” BEAUTY BEAT LONDON — As Sir continues to negoti- The future of Baugur’s businesses has been sub- ate with the Icelandic government to buy a chunk ject to speculation since spiraled into a fi - Bobbi Brown’s Latest Beauty Guide of Baugur Group’s debt, the Icelandic investment nancial crisis over the past few weeks. Last week, company issued a statement Tuesday insisting its Iceland’s largest bank, Kaupthing, was the third in MAKEUP ARTIST BOBBI BROWN businesses won’t file for bankruptcy. the country to be nationalized. The bank owned has unveiled a new book that’s meant On Tuesday, British press reports said the stakes in two of Baugur’s companies, Mosaic as a guide for everyone from beauty company, whose retail businesses in the U.K. and Jane Norman. beginners to professionals dedicated include Whistles, Karen Millen and All Saints, It is thought that, if a deal with Green, owner to makeup artistry. was set to appoint the U.K. administrator BDO of ’s parent company, , The volume, titled “Bobbi Brown Stoy Hayward. Administration is the U.K. equiv- does go ahead, it would be sealed this week. Green Makeup Manual” (Springboard Press) alent of Chapter 11. Alongside its investments in said over the weekend that Baugur has more than was spotlighted at a press event at 33 several U.K. specialty retailers, Baugur holds $2 billion worth of debt with Icelandic banks, but Bond Gallery in New York Tuesday stakes in the department store chain House of declined to comment on how much of that debt he morning. It will be launched at Fraser and designer brands Matthew Williamson plans to purchase or at what price. Bobbi Brown counters in January and PPQ, and an 8.6 percent stake in Saks Meanwhile, the British press has been rife with and carry a retail price of $32. Fifth Avenue. rumors that private equity groups and venture The book, which is Brown’s fi fth, “Further to media speculation today, we capital companies including Permira, TPG and has 12 chapters comprising two parts, would like to make clear that Baugur has not ap- Alchemy might swoop in to buy stakes in Baugur. a nine-chapter section called “The pointed any advisers,” said Gunnar Sigurdsson, TPG, which has a $20 billion fund earmarked for ▲ Brown’s new book. Basics” and a three-chapter section chief executive offi cer of Baugur. “We continue global investments, would be a prime candidate. called “What the Professionals Know.” to monitor the situation in Iceland [and] where A spokesman for TPG declined to comment, but a The fi rst section includes everyday tips like how to apply possible maintain a dialogue with the banks and source close to the company said Baugur’s brands makeup in 10 minutes or less, while the last few chapters ad- manage and plan our businesses accordingly. We would likely be on its radar. doing makeup for fashion shows and putting together a makeup portfolio. Included are step-by-step application in- structions and visuals. “I realized that all women wanted was to learn about the technical things,” said Brown. “It wasn’t just about wearing D&G, Marimekko Agree on Use of Pattern the right blush or lipstick, but showing them how to apply it, MILAN — Marimekko said Tuesday it had reached cation with the European Union’s Office for making it easier for them to understand.” an agreement with Dolce & Gabbana regarding the Harmonization in the Internal Market request- Brown dedicated the book to photographer Bruce Weber, with use of the Finnish textile and clothing firm’s floral ing that Marimekko’s trademarks of its red fi gure whom she’s worked closely over the years. pattern, Unikko. Marimekko had contested Dolce Unikko for textiles and textile goods, and for cloth- Also during the event, Brown introduced fi ve new make- & Gabbana’s unauthorized reproduction of a pat- ing and , be declared invalid. up items, the Bobbi Brights Palette of 35 eye shadows ($70), tern similar to the design. Earlier this year, Marimekko contested the use of Creamy Lip Color in four shades ($22 Dolce & Gabbana has agreed to pay an undis- a fl oral motif in certain Dolce & Gabbana items and each), Lip Gloss in six shades ($20 closed sum to Marimekko each time it uses the pat- won an injunction from Germany’s district court each), Skin Foundation SPF 15 in 17 tern. A spokeswoman for the Italian fashion house of Hamburg preventing the sales and marketing of hues ($45 each) and Face Touch Up For more, declined comment on the settlement. those Dolce & Gabbana products in Germany. Stick ($22). see WWD.com. In July, Dolce & Gabbana filed an appli- — Luisa Zargani — Michelle Edgar 4 WWD, WEDNESDAY, OCTOBER 15, 2008 WWD.COM J. Crew Opens First Collection Store By David Moin He means with something different, and that lies in the store’s eclectic array of Crew and non-Crew prod- WITH AN UNDERSTATED SCRIPTED SIGN ON THE ucts and unorthodox styling, i.e. a with hand- front door, the first J. Crew Collection store stands dis- painted French sequins displayed with distressed creetly on the southeast corner of Madison Avenue and , or a brocade evening dress accessorized with a 79th Street in Manhattan. Yet as low-key as the signage thin handmade and an easy cashmere for a may be, the store is where J. Crew design and merchan- sportier twist. dising are at their most expressive and imaginative. Along with those items the J. Crew brand is often The assortment encourages mixing modern items associated with — corduroys, T-, chinos, ballet with vintage pieces, uptown and downtown looks, and fl ats, jeans, cashmere and dresses — the Collection evening attire with a dose of the more casual in the store presents some higher-end products such as calf- same outfi ts. There’s an unexpected character, inside skin , priced $2,200, or patent leather jackets and out. lined in silk twill with a Ratti print, $1,800. There are “People tell me, ‘How about put- also metallic jackets and in ting up a bigger sign,’ but we don’t the $300 range, textured calfskin want to intrude on anyone,” said priced at $495, as well as silk Millard “Mickey” Drexler, J. Crew’s Japanese obi belts, Rolex , chairman and chief executive during hand-painted Elizabeth halters, a tour of the store with Jenna Lyons one-of-a-kind jewelry, including a Mazeau, the creative director. vintage “mazel tov” charm brace- “In an Upper East Side building, let, Lugano luggage, handmade silk I don’t think big signs are very ele- fl owers (only three per customer al- gant,” continued Drexler. “The last lowed), bleached and dyed python thing people want to see is their bags and clutches, and double- neighborhood become a strip cen- faced cashmere jackets with pick ter. It’s our way not to be out there, stitching on the sleeves shown with but to be there.” classic J. Crew cords. At the heart of the Collection Millard “Mickey” Drexler strategy, which mirrors the ap- and Jenna Lyons Mazeau proach taken by the company’s recently opened Liquor Store in TriBeCa selling men’s wear, is an effort to provide a fashion alternative, and designer J. Crew Collection’s new looks and quality at lower-than-designer prices. Madison Avenue store. “The world has become so formulaic,” Drexler said. “You go into a designer store and all you see are the de- signer’s clothes. The world is full of so many beautiful Lyons Mazeau. With J. Crew Collection, “We have never things. I like to go into stores where there are surprises. before been able to showcase what we do,” until the We are editors in addition to designers.” store debuted. “We plan to bring in a continuous fl ow of The decor of the store is different from typical J. special items. It’s not about massing it out.” Crew units, which tend to be essentially white backdrops Drexler declined to project a sales volume for the enabling the products to stand out more. The Collection 3,200-square foot Collection prototype, preferring not to store, on the other hand, is fi lled with art, and has a res- overstate a new concept before it’s passed the test of idential feel. It’s broken up into a few small pockets and time. “Clearly, we are really pleased with the fi rst three rooms. At the entrance, there’s a short staircase down, days” of business since the store opened Friday, though giving the feel of a sunken living room. Stately unlac- he noted that you can’t really judge a store’s perfor- quered brass fi xtures and doors are offset by contempo- mance by its opening act alone. rary elements including bright spot lighting, parchment “I wouldn’t want to say the timing was the best,” display tables and goatskin boxes for accessories. Some Drexler acknowledged. “This is not a great economic en- whimsy seeps in, too, with a soft blush pink dressing vironment, but we felt the neighborhood needed some- room with a pop of neon, the charcoal gray shoes and thing more realistic,” compared with designer prices on accessories salon housing an uncharacteristically large Madison Avenue that Drexler said have soared so high selection for J. Crew, including fl ats with peep toes as to be insulting. and feathers, and a boldly striped bathroom decorated “I think it’s all about character, honesty and integrity with Hugo Guinness prints. of product, along with good value,” he added. An entryway table featuring Although Collection products are seen in the J. Crew Asked if he is considering additional J. Crew Collection hand-painted sequin jacket, catalogues and online, the buying public still isn’t as fa- stores, Drexler replied, “We’re not in a hurry to do any- python clutch and accessories. miliar with the higher-priced offering as the company thing, but not ruling anything out. We don’t feel any pres-

PHOTOS BY JOHN AQUINO PHOTOS BY would like. “People don’t know what we have,” said sure to quickly determine where our path will take us.” FASHION SCOOPS All four designers said they are focused on control freak,” said Hopper, surveying a wall of NO LONGER PLAIN LINDSAY: Lindsay Lohan sure making their collections as strong as possible, black-and-white portraits he’d taken in 1964 knows how to create a scene. The 22-year-old given the economic roller coaster. “People are and 1965 of the likes of Paul Newman, James actress turned up at Henri Bendel on Monday still shopping, and they’re looking for quality, Brown and Jane Fonda. night to launch her new line of , novelty and something they haven’t seen Close friend Julian Schnabel, dressed in 6126, and more than 300 fans packed the before,” Som said. “It allows me to be more sloppy , deck shoes and a jacket, store in hopes of getting a glimpse, also creative.” said he’s headed to Israel soon to start snapping up several hundred pairs of the shooting a new fi lm. “It’s about love and leggings. “This is crazy, I’m so happy so many IN THE HOPPER: Cigar in hand, Dennis Hopper education,” he said. people came,” Lohan led guests around a retrospective of his Cinémathèque Française president, Greek said, looking out the front oeuvre Monday night at Paris’ Cinémathèque director Constantin Costa-Gavras, said he’s

window at another 200 STEVE EICHNER PHOTOS BY Française. “Dennis Hopper & New Hollywood” working on a road movie, “Eden Is West,” fans gathered on the The scene at Henri Bendel. features around 70 works of art, photographs starring Riccardo Scamarcio and Juliane Köhler. sidewalk. “I hope they buy and videos, both by and starring Hopper, who “It’s about a guy who travels through Greece some leggings.” With her DESIGNERS IN DALLAS: Target has tapped was earlier awarded the Ordre des Arts et des and Italy to get to Paris — he wants to get to little sister, Ali, and mom, Thakoon Panichgul to design a sportswear Lettres by France’s culture minister, Christine Paris, but that’s all I’m revealing,” he said. Dina, in tow, Lohan’s collection that breaks Christmas Day. “They Albanel. Also on show are key pieces from Agnès Trouble of agnès b., who sported security guards stood by were very easy to work with,” Panichgul said Hopper’s personal art collection, emptied out a “Vote Obama” badge for the occasion, to keep onlookers at a Saturday in Dallas. “They wanted a lot of of his Frank Gehry-designed disclosed that she has already distance. But Lohan did prints, and I chose silhouettes that have done house in Venice Beach, Calif. cast Hopper in his next role. admit leggings are only well in the past.” The designer was in Dallas Highlights include a pale “I’m going to start directing the beginning: She hopes with Peter Som and Marchesa designers Polaroid of Hopper in a cowboy my fi rst fi lm in March, a road eventually to launch a full Keren Craig and Georgina Chapman for a taken by Andy Warhol in movie about a little girl who’s sportswear collection, but CFDA-sponsored runway show at NorthPark 1977, a giant painting by mistreated and who climbs most likely will start with Center’s Fashion at the Park. After the Jean-Michel Basquiat, and into a lorry to run away. “amazing tops to wear show, NorthPark hosted the designers and a portrait by Annie Leibovitz Dennis will be driving it,” Lindsay Lohan with the leggings,” she other guests for a braised beef dinner at the of a shirtless Hopper seated said the designer, adding that said. Decked out in a Rick Mansion on Turtle Creek. with Christopher Walken at the she just got back from the Owens dress, 6126 leggings and Yves Saint “If it weren’t for Neiman Marcus, we Chateau Marmont in 1995, inauguration of a show of her Laurent heels, she said Alexander Wang is one wouldn’t be in New York,” Craig said. “They as well as the original Harley- personal photo collection at of her favorite young designers. “I wanted came to us in 2005 and said, ‘We’d love to Davidson chopper ridden by Berlin’s C/O Berlin. “It ranges to go to his show so bad, but his publicist carry your designs in our stores.’ So we came Peter Fonda in “Easy Rider.” from a print I own by Victor said they weren’t allowing any celebrities to to New York to do a sample collection for them, “I handed my life over to [the Hugo, taken in 1850, to works attend,” she said. “So I said, ‘Consider me a and we never left. They’ve been our partner Cinémathèque Française], Dennis Hopper by Ryan McGinley, who I like to normal person then!’ But they wouldn’t.” along the way, and we owe them so much.” which is very unusual as I’m a STEPHANE FEUGERE PHOTO BY think I discovered,” she said. SECTION II

TAKE YOUR BRAND TO THE SUMMIT WWDCEO Apparel Summit

Keynote Highlights Deals & Deal Makers Insider Insight

Event: Date: October 27 Post-Event Coverage Issue Date: November 12 Close: October 27

ANGELA AHRENDTS NATALIE MASSENET

BILL McCOMB

WENDY LIEBMANN

ALLA VERBER

ALLEN QUESTROM GLEN SENK

JOSIE NATORI VITTORIO RADICE

ALBER ELBAZ MATTHEW RUBEL

PATRIZIO DI MARCO

ROGER FARAH

For more information on attending, contact Jennifer Macaluso For more information on advertising, contact Christine Guilfoyle, at 212.630.4947 or [email protected] publisher, at 212-630-4737, or your WWD sales representative. 6 WWD, WEDNESDAY, OCTOBER 15, 2008

Versace Party The details have it. Designers on both sides of the Atlantic got the party started for spring with an array of fl irtatious On cocktail dresses that were distinctively beaded, embroidered or patterned.

Monique Lhuillier

Nathan Jenden WWD, WEDNESDAY, OCTOBER 15, 2008 7 WWD.COM

Christian Dior Balmain

Marchesa

Oscar de la Renta PHOTOS BY TALAYA CENTENO, GIOVANNI GIANNONI, THOMAS IANNACCONE AND DOMINIQUE MAITRE GIOVANNI CENTENO, TALAYA PHOTOS BY 8 WWD, WEDNESDAY, OCTOBER 15, 2008 WWD.COM In the Mainstream Kramer Out to Create ‘New Kellwood’ Continued from page one though the Limited did $10 billion in sales and A&F only did $3.8 billion, Abercrombie this year could grow to $50 million. did $10 million more in profi t.” The sale is just one of a string of changes both big and small being implemented Spending less on overhead frees up more money to allocate to brands and roll out by Kramer since he joined two months ago — from new management to the symbolic to retail. Although Kellwood’s fl agship brand, Sag Harbor, is ending its relationship elimination of ties from the corporate . “It’s important for you to live your with spokesmodel Christie Brinkley, Kellwood plans to increase the marketing spend brands — and we don’t sell ties,” said Kramer, 44. “Culturally, I think there is a huge overall, though Kramer said exact numbers have not been fi nalized. change taking place as we embrace our brands.” With Sun’s private equity pockets behind it, Kellwood is scouting acquisitions, from The result is a women’s wear-focused company that can be divided into juniors $10 million to $90 million in wholesale volume. Kramer said the company is deep in talks (Baby Phat, XOXO, My Michelle and Jolt), contemporary (Vince and David Meister) with about three brands, although he added that he is being “patient” waiting for the and lifestyle (Sag Harbor, Briggs New York and Koret). right price in this buyer’s market. Of particular interest are companies with expertise in Kramer predicts he can turn around the company in two to three years — al- areas where Kellwood wants to expand its brands, such as premium for Vince. though he declined to quantify what revenues or profi ts would defi ne a successful “A lot of people are suffering out there, and there are a lot more brands willing to turnaround. His to-do list includes streamlining Kellwood’s back offi ce, growing talk today than there were 12 months ago,” said Kramer. “One of the benefi ts of being direct retail, expanding the contemporary brands’ category offerings (like adding part of Sun’s portfolio is having money to spend. Working with Sun is like having our premium denim to Vince and accessories to David Meister), returning the core mod- own investment bank in-house.” erate brands to their former volume (it’s halved in the last three years), organically In addition to acquisitions, Kramer plans to organically create at least one brand, launching at least one brand (perhaps within the Phat Farm family, coming off the stemming from Kellwood’s current portfolio in 2009, potentially an offshoot of an ex- successful Fabulosity launch with J.C. Penney Co. Inc.) and acquiring others. isting brand, as Fabulosity was spun off from Baby Phat. Sun Capital in July tapped Kramer, then chief fi nancial offi cer and executive vice But Kramer is primarily excited about Kellwood’s existing offerings. He plans to president of Abercrombie & Fitch Co., to take over as Kellwood’s president and ceo. grow the direct retail side of Kellwood’s business, and Vince is the group’s poster Prior to A&F, the certifi ed public accountant served as cfo for Apple Retail at Apple Inc., child for direct retail expansion. and held fi nancial positions at The Limited, Pizza Hut and Einstein Noah Bagel Corp. “Kellwood has nailed wholesale, but not performed well with retail or the Internet,” “One of the reasons Sun hired me is that I have a true understanding of brand man- Kramer said. “I believe all three channels are important.” agement, not just buying brands and then watching them,” Kramer said. “I’ve been very Kramer sees the contemporary brand, which the company bought in 2006, as “a huge growth vehicle for Kellwood, which is performing well even in this economy.” Kellwood launched Vince.com last month, and has opened two stores in Los Angeles. The plan is to open about 10 more in 2009, including in New York in the spring. Kramer also sees category growth potential for Vince, from premium denim to and for 2010 or 2011. He projects that Vince’s domestic sales can grow to four to fi ve times the current wholesale volume, which industry sources peg at more than $50 million. Additionally, after success selling at Harvey Nichols in London, Vince is looking to European expansion “pretty quick,” said Kramer. Also on the contemporary front, Kramer pointed to David Meister as “a great brand that has been waiting for help.” The dress brand recently added large sizes, and Kramer said ac- cessories, jewelry and footwear are also on the table. Sportswear, which

PHOTO BY PASHA ANTONOV PASHA PHOTO BY the brand exited last year, is a possibility, but less of a priority. The Abercrombie alum gets most excited, though, talking about the Los Angeles-based junior brands. “There’s so much momentum at XOXO, Jolt and even My Michelle,” Kramer said. “I couldn’t be more pleased with XOXO — we’re going up with spring orders, and the absence of down in this environment is excellent.” With Baby Phat, Kramer plans to grow e-commerce Michael (“we’ve been doing fine, but could do finer”) and Kramer start testing retail next year. The early success of the Fabulosity diffusion line exclusive to J.C. Penney also Spring looks from Hollywould, which is up for sale. has encouraged Kramer to consider “rolling out other new brands from the House of Phat.” fortunate working for Steve Jobs [founder, chairman and ceo of An ad for Apple Inc.] and Mike Jeffries [chairman and ceo of Abercrombie Sag Harbor, & Fitch Co.]. I’ve learned tremendously from them about protect- which is ing your brands and managing them. I hope some of their genius ending its rubbed off.” deal with Kramer brings a fi nancial eye to the long-suffering vendor, Christie which has been attempting to stage a turnaround ever since Brinkley. his predecessor, Robert C. Skinner Jr., took over as ceo in 2004. Although Skinner tried to transform the company from a pre- dominantly moderate vendor to a brand manager with higher- margin brands and direct retail, the numbers never improved. Last year, Sun Capital staged a hostile fi ve-month takeover bat- tle, fi nally acquiring Kellwood in February for $762 million. Even before Kramer joined, Sun had begun making cost- cutting changes. Since February, Kellwood has: • Broken off its profi table soft goods businesses, American Recreation Products Inc. and Gerber Childrenswear Inc., into stand-alone companies within Sun, but independent of Kellwood. • Shuttered the Hong Kong-based sourcing operation, Kellwood Trading Ltd., and licensed parts of its sourcing to Li & Fung, among other suppliers. • Closed the moderate dress division. A fall ad from Vince, which is expanding • Exited unsuccessful licensing deals, including O Oscar, Liz into retail and additional categories. Claiborne and dresses, Calvin Klein white label and ck Calvin Klein bridge label. Calvin Klein’s parent company, Phillips-Van Heusen Corp., He’s even positive about the core of Kellwood’s historically predominantly moder- had been unhappy with the partnership, and gave the white label license to G-III ate base. Falling under the “lifestyle” division, moderate brands Sag Harbor, Briggs Apparel Group Ltd., while the short-term future of the bridge line is still unclear. New York and Koret make up nearly half of Kellwood’s volume, or just shy of $500 • Cut executive posts and dozens of back-offi ce jobs to eliminate overlap, includ- million. That’s half the volume they collectively did three years ago, Kramer admit- ing, most recently, one of Kellwood’s stars, Patrick Burns, group president of lifestyle ted — but he predicts they will return to their original volume within three years. As brands, who joined Maidenform Brands Inc. as executive vice president of sales and the moderate market has changed over the last few years, these brands had attempted marketing. A Kellwood spokeswoman said the fi rm is seeking a successor for Burns. unsuccessfully to reinvent themselves, and their sales had suffered as a result. Kramer declined to enumerate the number of jobs cut, but defended the streamlin- “One of the mistakes we made historically was aging with our customer,” Kramer ing model as one that would fi nally make Kellwood strategically competitive. said. “These brands were becoming too old.” “Financially, it makes sense, but strategically, it makes even more sense,” Kramer Last year, Kellwood hired Hope Brick, formerly a vice president of design at Wal- said. “We’re putting together a very effi cient machine. Kellwood owes it to its brands Mart Stores Inc., as chief merchandising offi cer of the vendor’s moderate or lifestyle to show there is a strategic advantage to being part of Kellwood. In recent years, brands, and Kramer raved about the difference the new design has made, despite the there’s been a hunger for that. As a brand-management company, we should be able loss of Burns as president of the lifestyle group. The lifestyle brands also added “the to provide services and back-offi ce support so the only thing they have to focus on is slimming solution,” a functional slimming technology. the product and the brands. The new Kellwood will provide behind-the-scenes help “It’s day and night in terms of the product, starting this fall,” Kramer said. “Hope has to leverage off our structure.” harnessed contemporary fashion and brought it to the right silhouettes for this customer.” He compared the “cross-branded model” of his alma mater, Abercrombie & Fitch, Kramer said the economy was not affecting the investment or turnaround plans for with the “vertical model” of Limited Brands Inc., where he also worked. Kellwood — though it makes the fi x-it job less stressful. “At Abercrombie, we had just one of everything for the brands to share, besides the “Coming from the public sector, I’m loving being part of a private company,” he merchandising, which was independent for each brand, while the Limited is a verti- said. “When you are public, it forces you to have more of a short-term focus. This is a cal structure with a back-offi ce job for each brand,” Kramer said. “That’s why even great time to be a private company, not having to watch your stock price.” WWD, WEDNESDAY, OCTOBER 15, 2008 9 WWD.COM Weatherproof Launches Marni, Dsquared Extend Reach to Spain and Hong Kong ‘Free’ Campaign By Alessandra Ilari and Luisa Zargani Mercer Street, now double the size at 3,000 square feet, is performing well. WEATHERPROOF GARMENT CO. CON- MILAN — The economic downturn isn’t stopping Italian fash- Meanwhile, Dsquared is opening its fi rst retail outpost siders the “If It’s Freezing It’s Free” cam- ion brands from expanding their global retail networks. in Asia, in Hong Kong, in partnership with luxury retailer paign to be a win-win situation. Marni and Dsquared are opening stores this month in Joyce. As part of the agreement with Joyce, the latter will be Should the temperature in Central markets outside Italy — specifi cally, Spain and Hong Kong, in charge of distributing the Dsquared brand in the Far East. Park hit the freezing mark or below respectively. The two-story, 1,620-square-foot boutique is located in on Thanksgiving, shoppers who buy a The Marni stores in Madrid and Barcelona will deepen Hong Kong’s central On Lan Street and is modeled after the Weatherproof coat in the first week of the bond between Spain and the fashion company’s designer, brand’s fi rst fl agship, which opened in Milan in June 2007. November, register online and mail in Consuelo Castiglioni, who has a house there on the isle of The design duo behind the brand, twins Dean and Dan Caten, proof of purchase will receive a refund. Formentera. take inspiration from Canada, the country from which they Regardless of the outcome, Weatherproof At the end of the month, she and her husband, Gianni hail, and pepper their stores with birch wood elements, executives see an upside. Castiglioni, the brand’s chief executive offi cer, will shuttle to cozy fi replaces and moose antlers. “A taste of home, where Eliot Peyser, chief executive offi cer, said, Barcelona to inaugurate a 3,456-square-foot fl agship whose Canadian woods meet design,” they said. “The worst-case scenario may be that we front facade was unaltered, allowing a clear have to pay. But then we will have 100,000 view of the shop’s interiors from the street. satisfi ed Weatherproof customers and their The decor is inspired by the geometry of tra- e-mail addresses for direct marketing.” ditional Spanish fl oor tiles. (After assessing the early November sales, Offsetting the store’s angularity is Marni’s the brand plans to buy insurance as a safe- signature undulating stainless steel rails and guard on Nov. 14.) trees that serve as displays for the collection. Peyser and president Fredric Stollmack Eyewear, accessories and jewelry are banking on the anemic economy to are showcased in backlit fi berglass boxes, drum up interest in the promotion. “They housed inside the walls, while different sized are going to turn down the thermostat and leather cases accommodate the fast-growing buy some outerwear,” Peyser predicted. collection. For more, The novelty of the campaign, which “We are increasingly trying to even out is being supported with print ads in New the apparel and the accessories on the sell- see WWD.com. York and on the West Coast, should also ing fl oors,” said Gianni Castiglioni, a format Dsquared and Marni are opening stores in Spain and Hong Kong, respectively. appeal to worried consumers. “It’s fun,” applied to the Dubai unit, where apparel Stollmack said. takes up 60 percent of fl oor space and accessories account The store carries the brand’s ready-to-wear collections, ac- Though that wasn’t the response he got for the balance. cessories, footwear and fragrances for women and men. when the idea was fi rst presented. “Let’s put He forecasts fi rst-year sales of 2 million euros, or $2.7 mil- The Catens will mark the opening on Oct. 17 with an event it this way,” he said. “I sign the back of the lion at current exchange, for Barcelona, and 1 million euros, organized by Joyce. checks and the guys who sign the front of the or about $1.4 million, for the accessories-only store, which In September, the company opened a 1,300-square-foot, checks asked the typical question they have opened in Madrid earlier this month. two-story boutique in Istanbul. There is also a store in been asking me for 15 years: ‘Are you crazy?’” The latter is modeled on similar Marni units, with lac- Capri, which opened this summer, and in Kiev, Ukraine. But once they hashed everything out, quered walls and fi berglass cases designed for shoes, bags, Outposts in Singapore, Dubai, Moscow and Cannes are the concept got the green light. “It’s a small and the ever-expanding costume jewelry line. scheduled to follow. way of saying thanks to our customers for Marni has been on a retail roll in recent months, ear- In 2007, Dsquared registered sales of 102 million euros, or buying our brand in these tough economic lier this summer opening shop-in-shops in Okinawa, Japan, $139.7 million at average exchange, for the period. For this times,” Peyser said. and in Hawaii’s Waikiki, with Hong Kong next on the agen- year, the company projects revenues of 120 million euros, or — Rosemary Feitelberg da. Castiglioni noted that the enlarged store on New York’s $164 million at current exchange.

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Retail Stocks Resume Slide 10 BEST PERFORMERS Amid Tight Spending Fears DAILY COMPANIES P/E VOLUME AMT HIGH LOW LAST %CHANGE By Evan Clark included Columbia Sportswear Co., down 6.7 percent to $33.96; G-III Apparel Group RETAIL’S RESPITE FROM STOCK Ltd., 5.9 percent to $14.56; Polo Ralph market declines lasted only a day, as Lauren Corp., 5.6 percent to $51.57, and 0.22 0.19 NexCen (NEXC) - 239335 0.19 +18.01 investors pushed stores’ shares down VF Corp., 5.4 percent to $59.11. 4 percent Tuesday on persistent fears Department stores posting declines 69.25 59.00 French Connection * (FCCN:L) 221.2 89052 69.25 +17.37 shoppers will freeze their spending well included Dillard’s Inc., down 9.4 percent into next year. to $8.59; Sears Holdings Corp., 6.5 per- 0.30 0.26 IT Holding * (ITH:MI) - 892936 0.28 +12.26 The Standard & Poor’s Retail Index cent to $63.47; Macy’s Inc., 4.9 percent to fell 11.90 points to 287.10, giving back $10.50; Saks Inc., 4.5 percent to $5.94; J.C. 5.05 5.00 Hampshire (HAMP) - 2350 5.05 +12.22 nearly half of Monday’s record-breaking Penney Co. Inc., 4.2 percent to $22.78, and 9 percent gain. Retail shares have fallen Kohl’s Corp., 3.6 percent to $32.50. 0.87 0.80 Safi lo * (SFL:MI) 6.3 3595276 0.81 +11.05 27.5 percent since the end of August, Among the specialty stores los- just before the banking crisis and credit ing ground Tuesday were New York & crunch shifted into high gear. Company Inc., off 11 percent to $3.80; 6.85 6.47 Delta Apparel (DLA) - 30300 6.60 +7.84 Even as the U.S. and other govern- Chico’s FAS Inc., 10.1 percent to $3.83; ments moved forward with plans to take Bebe Stores Inc., 9.2 percent to $6.93; 13.14 12.17 Revlon (REV) 12.2 215425 13.06 +7.05 equity positions in banks and ensure Aéropostale Inc., 7.5 percent to $25.90, the continuing fl ow of credit to busi- and Urban Outfi tters Inc., 7.5 percent 5.87 5.26 Hot Topic (HOTT) 14.3 870191 5.80 +6.81 nesses, investors looked beyond the to $23.89. New York & Co. shares have banking world to what is expected to be dropped 47.6 percent since the company 0.53 0.50 Tarrant Apparel (TAGS) - 3000 0.52 +6.12 a global recession. shifted profi t expectations After starting out the downward on Friday. 46.94 44.00 Richemont * (CFR:VX) 10.6 5129259 45.74 +5.73 day with a more than Todd Slater, equity 400-point jump, the Dow analyst at Lazard Capital Jones Industrial Average Markets, said of Tuesday’s ended down 76.62 points WWD retail stock decline, “It re- at 9,310.99, a drop of 0.8 fl ects the typical volatility percent. Investors also you’ve seen in groups that 10 WORST PERFORMERS pushed the price of oil INDEX are heavily tied to discre- down below $80 a barrel tionary spending.” DAILY COMPANIES P/E VOLUME AMT as concerns of weakening Beyond the stock mar- demand swirled. COMPOSITE ket, retail is an industry in HIGH LOW LAST %CHANGE The disparity between 809.24 fl ux. Stores are facing steep the performance of retail markdowns to move ex- shares and the market cess inventory this holiday 15.00 11.60 Zumiez (ZUMZ) 16.9 335262 11.92 -16.12 overall on Tuesday might season and a fresh round simply mark a return to of consolidation in which 2.81 2.09 Crocs (CROX) 2.3 2383056 2.15 -13.31 normality, with investors strong chains buy out their focused on companies’ competitors and the weak 3.52 2.90 Casual Male (CMRG) - 138443 3.06 -13.07 performance fundamen- players go out of business. tals rather than the mar- “What needs to happen 1.12 1.00 Sport-Haley (SPOR) - 6837 1.09 -12.80 ket’s sheer terror. is what’s happening,” Slater “Stocks have gotten said. “What you will see is a cheap in the sector, but -14.21 long-needed supply takeout, 0.76 0.70 Phoenix Footwear (PXG) 1.0 11664 0.71 -11.25 that said the outlook has less inventory in existing not improved from last stores and perhaps fewer 14.49 11.60 Volcom (VLCM) 9.6 576302 12.50 -11.16 Friday to today,” Marie stores overall. Over time Driscoll, Standard & Poor’s equity ana- you get a reduction in supply that tends 4.51 3.70 New York & Co. (NWY) 42.7 1419101 3.80 -11.01 lyst, said. “The only thing that’s different to higher [profi t] margins in the long run. is the world isn’t falling apart. The real It’s healthy. It’s necessary. Obviously, it’s 11.61 9.93 Iconix (ICON) 9.8 1032543 10.18 -10.70 fundamentals haven’t really improved.” painful for those that are liquidated.” Driscoll’s list of concerns include While U.S. stocks struggled on 34.19 28.53 Tiffany & Co. (TIF) 12.0 4065868 29.09 -10.63 weakening consumer sentiment and em- Tuesday, overseas investors continued ployment trends and increasing prices to reap the benefi ts of the internation- in the areas of health care, food and al cooperation to relieve the pressure 32.30 25.23 Kimco Realty (KIM) 24.9 6990668 27.36 -10.59 education. on the banking and credit markets. “For the next 12 to 15 months things The Nikkei 225, which was closed on * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the do not look that rosy and that’s what’s Monday for a holiday, began its week London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs hurting retail stocks,” Driscoll said. “It with a 1,171.14, or 14.2 percent, surge to and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. isn’t until [the third quarter of next year 9,447.57, while Hong Kong’s Hang Seng that] we have a chance of coming out of Index was up 520.72 points, or 3.2 per- this. By the time you’re in Q3, that’s nine cent, to 16,832.88. months away from now, our ability to Later on Tuesday, the European mar- forecast that far is weak.” kets completed a positive day that had NPD Report: Holiday Sales Expected Flat at Best Many retailers cut back their profi t London’s FTSE 100 up 137.31, or 3.2 By Vicki M. Young the-board declines in retail stocks. predictions for the rest of this year after percent, to 4,394.21 and the CAC 40 in Those expecting to use credit to pur- reporting weak same-store sales for Paris ahead 97.02 points, or 2.8 percent, THE NPD GROUP TUESDAY ADDED chase holiday gifts fell to 26 percent from September. Jones Apparel Group, which to 3,628.52. Burberry Group plc shares to the growing body of evidence suggest- 28 percent a year ago. Sixty percent of has both retail and wholesale operations, slumped 10.3 percent after it provided a ing that holiday spending will decrease those surveyed said either a “special sale joined them Tuesday, saying it now ex- cautious third-quarter outlook and Escada this year — or, at best, be flat. price” or “overall value for the price” will pects adjusted earnings for 2008 of 93 to was down 10.8 percent, but double-digit The Port Washington, N.Y.-based infl uence where they shop this holiday. 98 cents a share, down from the $1.20 to increases in share value were registered market research fi rm, in a report subti- Reliance on sales events also is due to a $1.35 previously expected and the $1.26 by French Connection Group plc (17.4 per- tled “It’s Holiday on Sale,” said that, in a lack of a must-have item, Cohen noted. earned a year ago. cent), IT Holding SpA (12.3 percent) and survey conducted last month, 26 percent At 49 percent, apparel topped the list “The economic environment con- Safi lo Group SpA (11.1 percent). of respondents expect to spend less this of items consumers plan to buy as gifts, tinues to deteriorate,” Wesley R. Card, Investors are also beginning to get a holiday, up from 18 percent last year. followed by toys and movies, at 37 and president and chief executive offi cer, better look at how the Bush administration Marshal Cohen, chief industry analyst 29 percent, respectively. Also making the said. “Our retail operations trended neg- plans to use its $700 billion bailout kitty. at NPD, said the change in intentions 10 were accessories, ranked seventh atively during the third quarter, consis- Offi cials detailed plans to strengthen “illustrates that consumers are already at 20 percent, and fragrances, 10th at 17 tent with the overall economic climate, troubled banks, which included a vol- focused on the idea of spending less.” percent. Books (27 percent), electronics refl ecting a drop in consumer confi dence untary program to purchase equity in While the percentage of those expect- (23 percent), video games (22 percent), and spending levels.” institutions, Federal Deposit Insurance ing to spend more remained the same as music (20 percent) and food (17 percent) Same-store sales in Jones’ own doors Corp.-issued insurance for new debt, an last year — at 11 percent — those who were the other categories in the top 10. fell 2 percent during the third quarter. extension of insurance to include non- anticipate spending “about the same” Cohen said the fashion industry could “Given the diffi cult business climate, interest bearing accounts and a new pro- declined to 63 percent from 70 percent. be doing more to help its cause. “This is we anticipate a more promotional fourth gram by the Federal Reserve to serve as For the fi rst time, Cohen predicted the least technically advanced industry quarter,” Card said. Shares of the fi rm the buyer of last resort for the commer- that holiday expenditures would be fl at or these days. Add in a lack of color and style fell 6.2 percent to $13.52 prior to the cial paper market. lower than in the prior year. The poll in- changes, and there truly is no excitement profit warning, which came after the — With contributions from Liza Casabona corporated the responses of 2,030 respon- being generated. Apparel will be hard- closing bell. and Arnold J. Karr dents answering from Sept. 8 to 16, the pressed to keep its number-one ranking Other vendors with declining stocks day before the credit crisis led to across- as most-often-given gift,” he said. WWD, WEDNESDAY, OCTOBER 15, 2008 11 WWD.COM Social Sites Tap Retailers Comptoir des Cotonniers Enters U.S. By Sharon Edelson $3.5 billion to make acquisitions. The company By Cate T. Corcoran said its long-term goal is generating sales of 1 NEW YORK — Comptoir des Cotonniers, the trillion yen, or $9.8 billion at current exchange. TWO MORE FASHION SOCIAL NETWORKING SITES HAVE JOINED French brand owned by Japanese fashion giant Since losing out on its bid to acquire Barneys an increasingly crowded field. Fast Retailing Co. Ltd., has opened its fi rst U.S. New York last year, Fast Retailing has displayed Closet Couture launched last week, with a twist: It lets women store, at 155 Spring Street here. continued interest in making acquisitions and share virtual closets with each other, with experienced editorial The 1,076-square-foot unit is expected to do growing existing businesses. stylists available for hire and with cutting-edge online retailers such $2 million in sales in its fi rst year, said Marianne Comptoir makes an effort to offer styles for as Presse and Kirna Zabête. (Another social network, Shoutfi t, also Romestain, Comptoir des Cotonniers’ general both mothers and their daughters. A corduroy top featured virtual closets, but shut down last year.) Chictopia opened director. The retailer will fete the opening on with a delicate fl ower print is $100, a dress with in April and matches style seekers with trendsetters based on their Thursday with a party hosted by Susan Sarandon a low V-neck, $140, and a with an image profi les and outfi t ratings. It has advertising from and her daughter, Eva Amurri. of Leon, the company’s French bulldog mascot, and James Perse, among others. Designed by an in-house team in France, the $135. A navy double-breasted coat with de- The fi rst social networking site devoted to fashion was launched collection of casual dresses, , jeans, tail, $260, and a suede bomber jacket, $490. three years ago. Now the original MyStyleDiary has been joined by and has few items priced sites such as StyleMob, Iqons, ShareYourLook, ModePass, Osoyou, over $200. “Everything is very wearable Polyvore, Glam, Sugar and MySpace’s fashion community. Like gen- and easy to ,” said Romestain. For more, see WWD.com. eral social networking sites, these sites devoted to style allow users “We’re very happy with the results since to create a profi le and link to friends. In addition, many let mem- we opened. The street has big traffi c bers upload, vote and comment on photos of outfi ts as well as blog and international and American cus- and converse on any topic. tomers. It gives us visibility.” Meanwhile, retailers and brands have recently jumped into the social Comptoir, which operates 340 stores networking space, as well. Wet Seal and Juicy Couture have created their worldwide, plans to open 30 to 40 stores

own social networks, and St. John plans to unveil one early next year. in 2009. About two-thirds of the compa- THOMAS IANNACCONE PHOTO BY ny’s units are in France. The remainder are in other European countries and Japan. Comptoir is not well known in the U.S., but Romestain is counting on its down-to-earth philosophy — natural fi bers such as cotton and wool, and ads Comptoir’s entrance in which mothers and daughters were on Spring Street. photographed with what appears to be minimal makeup and styling — appeal- ing to new consumers, aged 25 to 65. Footwear and handbags are growing. A col- “We’re planning to open two more stores in laboration with the Brazilian fi rm Veja, yields Manhattan this year and we’re starting to discuss two shoe styles each season. [wholesaling the collection] with department The Comptoir unit, which is next door to sis- stores,” Romestain said, adding she sees the po- ter brand Theory, has bleached-wood planks on tential for “several dozen” stores in the U.S. the fl oor, and a huge pearlized white vase fi lled “Comptoir has a very special positioning,” with calla lilies. Romestain said the company fa- she said, “designer-type merchandise at afford- vors stores that aren’t large and cavernous. “We able prices.” like to work in close proximity to customers,” she Fast Retailing, which is the parent of Uniqlo, said. “With a small store, it’s a much more human said last year that it was prepared to spend up to scale. The sales staff is able to give real advice.” ▲ Presse’s virtual closet on Closet Couture. Advertisers are fi nding niche sites like these to deliver a highly tar- geted, fashion-obsessed audience, although — at least, so far — their traffi c is smaller than on the more general social networks. “The niche sites do well for American Apparel,” said Gene Slyman, a freelance media buyer for American Apparel based in Washington. “However, they lack the reach that other larger social networks have. Therefore we end up doing both. We’ve tested literally thousands of niche sites; it’s a non-stop process. The best mix are sites that aren’t too main- stream, yet have the reach that allows us to scale.” Online ad rates vary widely, from as little as 10 cents to $20 and up per thousand impressions. Niche sites can often charge higher rates. Closet Couture gives retailers the opportunity to interact intimately with customers. Approved stores and stylists have pages and virtual clos- ets on the site. Site members can virtually try on items with other things already in their wardrobes, get advice from store owners, put items on their wish lists or click through to the online stores to purchase. “When it comes to e-commerce, [co-owner] Renee [Klein] and I have a really open mind because shopping — especially online — is constantly evolving, especially in shaky economic times,” said Zoe Schaeffer, a co-owner of Presse, a Los Angeles -based boutique and online store that carries Rodarte, Proenza Schouler and Vena Cava. “You have to think outside the box in terms of how you’re going to grab new customers and how you’re going to market yourself. Closet Couture is a fun, easy way to gain exposure and an amazing cross-marketing platform for retailers, stylists and designers. This is the fi rst online platform where you can share merchandise as well as have an interactive experience with credible people in the fashion industry.” “What we want to do is mix the best stores with the best taste- makers at all levels,” including chain stores and mass, said Closet Couture founder Chris Elia. Launched with about $500,000 in seed funding from retailer House of Lavande and other investors, the Santa Monica-based site has attracted 600 members in one week. Revenue streams include banner ads, a 10 percent cut of stylist ser- vices and affi liate fees. San Francisco-based Chictopia has 13,000 members and about 10,000 visitors a day who leave more than 20,000 comments daily, far more than the average blog with the same traffi c. “It creates a plat- form for trendsetters to make stars of themselves,” said co-founder Helen Zhu. “The deep engagement is very attractive to advertisers.” Sixty-seven percent of its members are 18 to 24 years old. Ninety- one percent are “infl uencers,” according to Zhu. The site is self- funded and will be advertising-supported. “It’s proven to be this awesome community that simultaneously gen- erates traffi c and ideas,” said Evelyn Peterson, a 25-year-old full-time student in Chattanooga, Tenn., who joined Chictopia in May. Posting photos of what she is wearing on the site has helped readers fi nd her blog, and she hopes it will do the same for the online vintage store she’s planning to open soon. “It gives you a creative edge,” she said. “It’s made me a lot less lazy and a lot more experimental. You’re racking your brain for ‘what should I do next?’ Then you see this girl in the countryside of Norway wearing funny-shaped pants. You’d have to wait so much lon- ger if you were going to mainstream media and waiting for the trickle- down,” she said. 12 WWD, WEDNESDAY, OCTOBER 15, 2008 WWD.COM Marketing Where in the World Are Luxury Shoppers?

By Valerie Seckler Bulging closets and economic turmoil are expected to put a lid on luxury apparel spending in the U.S. MUCH OF THE GROWTH IN LUXURY GOODS CONSUMPTION IN 2009 IS LIKELY next year. to come from outside the U.S. — notably China, India, Russia and Brazil — once volatile economies worldwide find their equilibrium, Boston Consulting Group is forecasting. “Recent events are causing people to be reluctant and their spending is frozen,” Michael Silverstein, a BCG senior partner and managing director, said in an inter- view. “In Russia, India and China, stock markets have taken harder hits than [the U.S.], down 30 to 50 percent in major indices over the last year. In China and Hong Kong, there are unstable real estate prices and huge amounts of speculation.” Despite such gyrations and the “vastly unequal wealth distribution” in these re- gions, where “the elite are still the elite,” consumer specialist Silverstein views the current scenario as a “short-term blip in long-term, tremendous growth of a large population of wealthy people who will emerge over the next decade and drive an enormous amount of luxury spending.” With the fi nancial crisis in the U.S. rocking Wall Street, Washington and Main Street, few Americans Luxury consumers are likely to be trading up, near term, for fashion, “ travel or vacations, Boston Consulting is project- are newly resistant. ing. Shoppers in 2009 could spend 4 percent more in trading up for their luxury apparel purchases, So much of luxury Silverstein estimated, which would keep their spending fl at versus 2008, in terms of real dollars. spending is so easy Three-quarters of a representative group of adults told the Harris Poll earlier this month they to hold back on. think the U.S. “is on the wrong track,” one indi- cation of the troubled economy’s impact on their — Pamela Danziger,” sense of confi dence. “Luxury consumers are newly resistant. They are saying ‘no’ where they used to Unity Marketing say ‘yes,’” observed Pamela Danziger, president of Unity Marketing, whose most recent luxury con- sumption index for the U.S. had already sunk to 51 at the end of the fi rst half of 2008, from 63.6 back in January. “So much of luxury spending is so easy to hold back on.” In America’s premium fashion arena, trading down to less than the best items could spell spending decreases of 6 to 8 percent next year, or 2 to 4 percent in real dollars, Silverstein estimated. “Fashion is a vulnerable sector,” he said. “Even households that do most of the apparel spending have very crowded closets,” he added of the 20 percent of the population that accounts for 80 percent of luxury apparel purchasing. Futurist Faith Popcorn, for one, has struck clothing from her near-term shopping list. “I’m not letting other people do my shopping anymore,” Popcorn said in an inter- view Tuesday, referring to one way she is economizing. “I’m doing my own shopping. I love the supermarket.” After speaking with 1,200 affl uent U.S. consumers, with average annual income of $209,000, during the fi rst 10 days of October, Danziger found they were “shopping less often, shopping more strategically by making lists, comparison shopping and doing their research before venturing into the stores. These new shopping patterns are going to put additional pressure on struggling retailers who traditionally have looked

to the upper-income shoppers to bolster their revenues.” IMAGES M SZWAJKOS/GETTY PHOTO BY Consumer electronics is one standout that could buck the current spending pull- back, with a big share of shoppers willing to spend more, or trade up, using funds Throughout the fi rst half of the year, BCG asked 21,000 adults in 16 countries about they’ve saved by trading down on other things. But luring shoppers with something their spending priorities for its just-published report, “Trading Up and Down Around new and different is likely to get harder in this hot sector, too. The BCG managing di- The World,” and found the U.S. was the only locale among fi ve of those regions where rector doesn’t expect many consumers to be drawn to the burgeoning HD radio format people were not planning to trade up this year or next for luxuries in fashion, beauty anytime soon, for instance, even as people upgrade to HDTVs. or personal care. (The four regions where people were willing to spend more for such things were Japan, China, Russia and parts of Europe — Germany, France, Italy, Spain and the .) Apparel for one’s self is on the list of trade-ups people were envisioning in Russia, OF BUSINESSMEN NAMED SNICKERS and high-end shoes were a target for those in Russia, Japan, China and parts of AS THEIR FAVORITE CHOCOLATE BAR Europe. “In Russia and China, a major thing is [to wear] a visible brand as a badge FOR “COMFORT” DURING THESE TOUGH of success,” Silverstein said, when asked why luxury apparel made trade-up lists in Russia. Premium hair care products were in the sights of consumers in China and ECONOMIC TIMES. Russia, while bath and body luxuries made the list for China. “Newfound wealth in developing countries and younger ages [there] signal an in- 15% REESE’S PEANUT BUTTER CUPS PLACED clination to be more material and buy more,” Danziger said of her luxury consump- — BRAND KEYS, OCT. 3-5 POLL, OF 750 A CLOSE SECOND AS A CHOCOLATE BAR tion outlook. China’s median age is 32, Brazil’s is 27 and India’s is 26, for example. BUSINESSMEN, 25 TO 65 YEARS OLD, By comparison, the median age in the U.S. is 36 and it’s 38 in Russia and 42 in Japan. IN THE NINE U.S. CENSUS REGIONS COMFORT (14%). “The higher ages in the developed world don’t bode well for luxury brands there,” Danziger added. “As you get older, you get less material.”

The (Gradual) Greening of America BY THE NUMBERS 84% of people over 55 are trying to DESPITE THE NEWEST WAVE OF PRODUCTS AND SERVICES MAKING CLAIMS save energy. they’re environmentally friendly and the surge of marketing campaigns spouting green messages, roughly the same share of adults in the U.S. are adopting various eco-driven 67% of people under 35 are trying to behaviors as they were a year ago, according to consultant WSL Strategic Retail. save energy. The bottom line: The easier things are made for people, the more likely they are to take on those ways, observed WSL principal partner Candace Corlett. The most favored among 31% of adults are using canvas totes in them include using canvas totes in place of paper and plastic shopping bags at stores, a prac- place of disposable shopping bags. tice being adopted by about 31 percent of consumers; buying things packaged in recyclable materials (28 percent), avoiding products with “too much” packaging (27 percent) and shop- 22% of consumers 18 and older are ping at stores that indicate they’re making sustainability a priority (22 percent). choosing to shop stores they believe are The number of people making green choices such as these has been growing by be- aiming to become more sustainable. tween 1 and 4 percent this year, signaling a slight increase, based on a nationally repre- sentative group of 1,500 adults 18 and older, who WSL polled online in May and June. SOURCE: WSL STRATEGIC RETAIL, “HOW AMERICA SHOPS,” When asked the degree to which economic considerations come into play, say, in MAY TO JUNE ONLINE POLL, NATIONALLY REPRESENTATIVE switching to lightbulbs that consume less energy or to devices that reduce the amount GROUP OF 1,500 ADULTS, 18 AND UP. of water used in one’s home, Corlett acknowledged they’re a factor. She also said “we A favorite green believe people’s hearts and minds are in the right place.” Noting WSL asks consumers practice: Shopping about eco-concerns year-round, Corlett added, “A number of people have said, ‘I wish I The most popular eco-conscious behavior was with reusable totes. was doing more,’ especially people 55 and older.” one of the easiest — buying energy-saving

PHOTO BY HARRISON EASTWOOD/GETTY IMAGES PHOTO BY — V.S. lightbulbs, now done by six in 10 adults. WWD, WEDNESDAY, OCTOBER 15, 2008 13 WWD.COM WWD West Buyers Turn to Accessories at L.A. Market

By Khanh T.L. Tran and Anne Riley-Katz sales, reasoning that customers would Silk print Burnout T-shirt attach themselves to recognizable names LOS ANGELES — Bangles, bright colors and a gold medal- dress by by La Doll and in a lagging economy. Jerry Leigh, a Van ist were among the elements that apparel manufactur- Delicia. denim by Nuys, Calif.-based manufacturer, dis- ers at the Los Angeles Majors Market used in an effort Vanilla Star. played T-shirts from licensed proper- to appeal to retail buyers disheartened by the economy. ties ranging from Rainbow Brite and Merchants said accessories were carry- Disney’s popular TV show “Camp Rock” ing their stores through the turbulence and to Paul Frank and Fender. they sought to stock up on , belts “They do well because to be part of and handbags. a lifestyle it’s $30,” said Lisa Reisner, “Handbags are picking up for us, es- sales manager for Jerry Leigh. pecially large totes and animal prints,” Vanilla Star, a Teterboro, N.J.-based said Ashley Wheeler, a buyer for Anchor denim company, harnessed the celeb- Blue, a junior retail chain based in rity of Olympic gymnastics gold medalist PHOTOS BY TYLER BOYE PHOTOS BY Ontario, Calif. Nastia Liukin to attract its target cus- The three-day trade show, which tomer — described as an 18-year-old girl ended Oct. 8 at the California Market in Middle America. After signing Liukin, Center here, focused on department who is 18 and lives in Parker, Texas, last store buyers looking for new spring June to a two-year spokesmodel con- trends in the junior and missy markets. tract, Vanilla Star collaborated with her Ethnic styles appeared to catch on to design 17 styles. They include with trend-conscious retailers. screen-printed with gold “Boho is big. So is fringe and leopard spots on the and tattoo- Navajo or Indian style,” said Sheri inspired Ts, all retailing from $28 to $68 Ghassemzadeh, an accessories buyer under the Nastia Gold label. for Windsor Stores, which has about 45 The troubled economy didn’t deter locations in the U.S. some companies from launching lines Yet, Windsor, like many retailers, was for spring. purchasing less overall. “We’re being Gatsby, a Puerto Rico-based retailer more cautious with volume and not as that has been in business for 35 years, adventurous with our money,” said Lia began wholesaling its junior-centric Ghazarian, another buyer for Windsor. private labels, It’s Me and Funky Soul. “We have to fi nd what’s blowing out and Cotton tunic by Jet Set and colored denim by Tyte Jeans. Specializing in denim with sizes from 0 run with it.” to 19, It’s Me offered jeans wholesaling Denim is among the categories that have wholesaling from $27.50 to $30, with animal prints, for $16.50, in addition to vests, skirts and . been strong sellers in the junior market, bleach and paint splatters. YMI manipulated a However, Funky Soul made a push with , in- with white denim emerging as a big trend for rainbow color palette into denim tie-dyed cluding a $9.50 swing skirt in poplin. After signing retail- next year. in orange and white and pink plaid , ers such as Mandee and Shoe Sensation, sales manager “Denim is a year-round business,” said along with acid washes tinted in purple. All retail for Jeff Ferreira said It’s Me and Funky Soul aim to hit $10 Sandy Richman, president of Directives West, less than $100. million in combined wholesale sales for the fi rst year. a Los Angeles-based merchandising consult- Steve Mandell, Love by Design vice president of New York’s Linea Blu unveiled its knits that have ing fi rm owned by The Doneger Group. “As far sales, said buyers are “not looking for basics at all.” been dip-dyed and made with fi ner gauge cotton and as this year, even in the heat of summer, the In addition to fresh takes on fashion, buyers wanted viscose. Wholesaling from $35 to $55, Linea Blu hopes appetite for denim continued.” value. At Self Esteem, a Montebello, Calif.-based junior to appeal to Baby Boomers who shop at better spe- Novelty was key in denim, as with sportswear, line, value came in the form of bracelets, clip-on sus- cialty boutiques. and junior vendors tried to outdo each other. penders, ties and that were added gratis to Indira, a 28-year-old missy line from Los Angeles, in- Girl Krazy, a division of New York’s Krazy tops. Buyers also liked so-called completers, such as a troduced a skirt label called Mike’s Girl, which whole- Kat, mixed four panels of different printed vest or zip-up jacket that is sold with a top to complete sales from $28 to $36, with an eye toward younger cus- fabrics on a tiered skirt wholesaling for less an outfi t. tomers who prefer bright tints like burnt orange and than $11. Rampage let consumers remove a “When we offer additional items like the scarf and easy fabrics such as washable rayon and cotton eyelet. chunky buttoned onto a halter jer- headbands, it helps the sell-through,” said Richard Despite their caution, retailers need product to sell, said sey retailing for $49. New York’s Love Clareman, president of Self Esteem. “The bestsellers Vanessa Kirianoff, owner of Blu Phoenix in Aspen, Colo. by Design replaced regular straps with braids right now are the completers and the add-ons.” “It’s fashion — you have to keep it different,” she said. on dresses and tops. covered its jeans, Some vendors banked on celebrity brands to boost — With contributions from Rachel Brown Merrell Raises Apparel Profi le With S.F. Flagship By Joanna Ramey then our business with the local retailers a line of bright-colored $80 to $100 casual Women’s jackets in Merrell’s will increase.” soccer-style shoes, popular in Europe SAN FRANCISCO — Merrell, the multisport San Francisco store. Women’s and men’s high-performance and Asia, might sell in the U.S., where and casual footwear brand, wants to ex- apparel accounts for 10 percent of sports shoes in earth tones and black pand its year-and-a-half-old apparel busi- Merrell’s sales, Cobb said. Among the wom- have reigned in popularity. ness with its first corporate flagship here. en’s sportswear offerings are $75 moisture- The fl agship’s design has splashes of The 2,400-square-foot L-shaped store on wicking black nylon tailored travel pants, Merrell’s Mod tangerine orange signature Union Square, next to Macy’s West Coast $89 zippered padded jackets and $79 soft color as trim and falling leaves against fl agship, will mark Merrell’s U.S. retail Merino wool turtlenecks treated with cop- light-paneled walls. The baseboards are debut when it formally launches Oct. 23 per for its natural anti-odor properties. made of river rocks. Vertical opaque pan- after a six-week soft opening. The 27-year- Selling especially well across the country els behind displays are fi lled with grass old company’s U.S. business had been built is a $200 waterproof hooded with and hardware is recycled. Behind the through department, sports and specialty pockets and tailored detailing. cash register is a bulletin board for Bay stores, as well as three franchise units. At the San Francisco store last month, Area outdoor trekking tips, reinforcing Executives at Merrell, a subsidiary of Merrell’s advertising tag line: Wolverine Worldwide Inc. in Rockford, “Let’s Get Outside” and its Mich., said they picked San Francisco as the motto to outfi t outdoor “enthu- company’s retail hub because of Northern We also wanted the fl agship siasts, not extremists.” California’s outdoorsy lifestyle and affl u- “ As for how the stressed U.S. ence, as well as strong year-round tourism, to be in an international city economy is affecting Merrell particularly from Asia and Europe. sales, Cobb said revenues are “We also wanted the fl agship to be in that is style-conscious and trending upward, though he an international city that is style-con- declined to give specifi cs. “We scious and forward-thinking,” said Keith forward-thinking. feel fortunate to be in a nice Anderson, marketing director. ” growth segment of the econo- Two more Merrell stores are to open — Keith Anderson, Merrell my,” he said. this year — in Birmingham, Ala., and Retail sales of outdoor ap- Portland, Ore. — locations where the the number of stores. (The three Merrell about 20 percent of sales were apparel, parel in the U.S. increased 8 percent in brand has done well and where there are franchise stores are in Huntington, N.Y., and overall sales “more than doubled” July to $192 million, compared with a many outdoor enthusiasts, said Seth Cobb, Atlanta and Nashville.) expectations, he said. year earlier, and footwear sales gained vice president and general manager. More “We are using our retail strategy to be The store is also being used as a prod- 4 percent, according to research fi rm U.S. Merrell stores selling the full collec- able to tell the Merrell brand story to the uct development lab to test new apparel Leisure Trends Group. However, current tion are planned in the next three to fi ve consumer,” Cobb said. “If we are doing and footwear styles on both locals and economic conditions will cause one-third years, but they will be limited to select our jobs and telling the right story and traveling customers. One early test is al- of outdoor gear and apparel shoppers to cities, Cobb said, declining to discuss integrating the brand into the community, ready under way, to determine how well buy less, Leisure Trends said. 14 WWD, WEDNESDAY, OCTOBER 15, 2008 WWD.COM MEMO PAD Kenneth Cole IN CASE YOU HADN’T HEARD: Publishers 26 years to curate a collection of work by “bachelor” party at Mansion. The 2008 roster Information Bureau on Tuesday confi rmed infl uential photographer Ronny Jaques, who includes 51 men because White couldn’t Taps Claiborne’s what everyone already knows: advertising died this summer. The time represents the decide a winner for Michigan: both Greg Brown revenue continues to slide. Total ad revenue lengthy friendship between the two, which and Christopher Stewart received the honors. for the fi rst nine months of 2008 was $18.4 began while Fiori was on her honeymoon in The men worked their charms on Black and billion, down fi ve percent from the same 1982. Friends of both who gathered at the other Hearst editors during their meet and Dixon Smith period a year ago. The drop was even steeper Hearst Tower Monday night for the release greet. Mr. Montana (née Jess Peterson) said ABOUT SIX MONTHS AFTER in the third quarter, when ad revenue fell 8.8 of “Stolen Moments: The Photographs of he encountered Marie Claire editor in chief leaving Liz Claiborne Inc. to be- percent to about $6 billion. As expected, Ronny Jaques” included Bryant and Hillary Joanna Coles in the elevator. “She said, ‘Are you come Kenneth Cole Productions automotive advertising was down dramatically Gumbel, Simon Doonan, Dennis Basso, Anthony one of those there bachelors?” he recounted, Inc.’s chief executive officer, Jill — 19.9 percent for the nine Mazzola, Sirio Maccioni, Vera accurately imitating the editor’s British accent. Granoff made her second ex- months and 23.9 percent for the Wang and Helen Gurley Brown. A “Well, we need to get us some of those.” Later, ecutive hire, drafting Danesha quarter. Other categories that saw contemporary of Richard Avedon Peterson, a cattle rancher, spoke with Black Dixon Smith, with whom she sharp declines during the quarter and Lillian Bassman, Jaques’ about supporting domestically raised beef. worked at Claiborne, as senior included food and food products, celebrity, fashion and man-on- Black informed him of Hearst Corp.’s cattle vice president of human re- which were down 18.4 percent, the-street portraits were found in ranch in Southern California, which provides sources. and drugs and remedies, which Harper’s Bazaar, Town & Country, the beef served in the company cafeteria. Mr. Smith worked at Claiborne fell 16.6 percent. Holiday and Gourmet. For Fiori, Hawaii and Mr. North Carolina (aka Jon Fritzler from April 2007 to Sept. 4, Elsewhere for the quarter, retail the images of Marlon Brando, and Corey Caldwell, respectively) posed with 2008. She worked in human re- dropped 6.8 percent; toiletries Coco Chanel, Yves Saint Laurent, Black for photos after she moved through the sources, overseeing Claiborne’s and cosmetics were down 0.5 The Ronny Bette Davis, Ernest Hemingway crowd with her tight-lipped lunch date, Vanity direct brands Juicy Couture, percent; apparel and accessories Jaques book. and others inspired the title Fair contributor Michael Wolff. Perhaps he Lucky Brand Jeans and Kate fell 7 percent; media and “because when I looked at the hadn’t expected such competition for Black’s Spade, over which Granoff had advertising dropped 4.1 percent; photographs, they looked like they attention? — S.D.S. presided as executive vice pres- direct response companies were photographs taken by accident.” ident of direct brands. Before decreased 7.8 percent; fi nancial, insurance Images from the book will be on display in PREACHING BEAUTY: Last year, Seventeen Claiborne, Smith worked in and real estate was down 1.6 percent; home a gallery space on the Hearst Tower’s atrium magazine launched the “Body Peace Project” human resources for Home furnishings and supplies slipped 8.4 percent level for six months. — Stephanie D. Smith in order to get readers to help teens stop Depot and Cendant Corp. and technology slid 2.2 percent. obsessing over their weight. Now designers “I am pleased to have And while the outlook for holiday is one of SERVING UP ONE HOT LUNCH: Things were are joining the cause. In the title’s November Danesha join us,” Granoff said. the bleakest in years, retail was one of the few somewhat wilder the next afternoon at the issue, Diane von Furstenberg, Donna Karan, Max “She is a dynamic and experi- bright spots in the fi rst nine months, with ad Hearst Tower. “It’s like a singles bar!” Hearst Azria, Kimora Lee Simmons, Betsey Johnson and enced human resources execu- revenue up 4.5 percent. Public transportation, Magazines president Cathie Black exclaimed Rebecca Taylor have created styles that would tive and will be a great comple- hotel and resorts also rose, by 3.1 percent; food when she saw 51 black T-shirt clad men look good on women of all shapes. In addition, ment to our team as we focus on and food products increased 3.4 percent, and gathered in the company’s cafeteria with 15 other designers have pledged to help teens strengthening and growing our fi nancial, insurance and real estate rose 0.6 Cosmopolitan editor in chief Kate White. The feel good about their bodies, including Tory brands worldwide.” percent. And clearly all of that increase came men were chosen as the magazine’s Hottest Burch, Monique Lhuillier, Charlotte Ronson and Based in New York, Smith before the Wall Street meltdown. — Amy Wicks Bachelors this year, and had lunch with White Nicole Miller. As von Furstenberg writes in reports to Granoff and replac- and any other Hearst editor eager to meet the magazine, “Be yourself and enjoy it! Live es Linda Nash Merker, who left PHOTOGRAPHIC MEMORIES: Town & Country the group before it bused to a meeting with healthy and love your body! Your confi dence is in July. editor in chief Pamela Fiori admitted it took Wilhelmina Studios and, later that evening, a your real beauty.” — A.W. — Whitney Beckett

WWD.COM/CLASSIFIEDS

For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise.

STORE MANGER

High-end luxury apparel company seeks Store Manager for boutique in greater Los Angeles area. Min. 5 yrs managerial exp req. Resp for analyzing business to drive sales; assess, Director of Retail Stores (LA) train & dev. high caliber sales team; maintain & dev. strong The ideal candidate has a minimum of 3 years experience in fashion retail is pleased to announce the opening clientele; provide high level of customer service; merchan- management or equivalent buying experience in a contemporary designer dise selling floor; & achieve aggressive sales goals. or luxury environment. Must also have experience managing & forecasting of the following new stores: a sales plan, preparing open to buy, strategizing sales plan by location, Qualified candidate should be able to work independently. and analyzing results. We are seeking someone who has had multi store Excellent verbal & written communication. skills required. accountability, is hands-on, has experience in opening stores, has a high Beverly Hills taste level and a strong fashion sense, and has visual Denver Position offers competitive base salary plus commission on merchandising/presentation exp. Candidate must be a strong leader with sales; comprehensive benefits package. a proven track record of recruiting, training, inspiring and retaining store Vail teams to achieve desired results. Position is located in Los Angeles. To apply, please e-mail your resume to: Pls e-mail resume to: [email protected] or fax: to: 626-457-8439 Outstanding opportunities available [email protected] in both Management and Sales SOURCING/PRODUCTION [email protected] MANAGER West Los Angeles Based Wom- en’s Footwear Company is seeking a sourcing/production manager to help manage production in China. Person must be a self motivated Associate Designer individual who sets high stand- ards and goals for themselves Fashion - Active with a femi- and those around them. nine, sexy aesthetic and Responsibilities would knowledge of active knit include: fabrications, stitching and •Significant overseas travel construction. •Building and maintaining factory relationships General knowledge of trims •Helping to ensure quality of sam- and logo techniques, and ples and production excellent sketching, presen- •Helping to achieve consistent re- tation and communication liable deliveries skills needed. •Negotiating prices •Improving overall reliability and Positions are based in efficiency of overseas operations Los Angeles. Exp with sourcing women’s foot- wear in China is a plus. Email resume and jpegs to: Please fax resume to [email protected] Peter at 310 473 7727 WWD, WEDNESDAY, OCTOBER 15, 2008 15 WWD.COM/CLASSIFIEDS

For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise.

PATTERNS, SAMPLES, PRODUCTIONS Full service shop to the trade. Fine fast work. 212-869-2699. Cash For Retail Stock & Closeouts. ASSISTANT CONTROLLER No Lot Too Big or Too Small. Buyers $60K-$100K CAD Design (u4ia) $60K-$80K Premier luxury brand seeks an exp’d Assistant Controller for its growing Call CLOTHES-OUT: Designers (acc.) $50K-$100K CSR (EDI) $40K-$65K Finance department to handle all aspects of accounting; including monthly (937) 898-2975 Account Exec. (luxe) $60K-$100K Planners (retail link) $40K-$95K closings, analysis of fixed assets & inventories, reconciliations, cash flow ... AND AMAZING FREELANCE OPPORTUNITIES!!! & preparation of monthly financial statement. #1 Fashion Resume Expert Must possess excl organizational & analytical skills as well as exp managing a Staff Thru Executive-Wholesale/Retail Please email resumes to: [email protected] staff. Prior Finance exp w/in the retail/wholesale industry is preferred. Free Evaluation - Lifetime Updates For freelance opportunities: [email protected] GILBERT CAREER RESUMES visit us on the web at: www.fourthfloorfashion.com Growth oppty. Send resume inc salary history to: JOBBER/EXPORTER (800)967-3846 amex/mc/visa [email protected] We buy better goods. All categories, fashionresumes.com including fabrics. Immediate $$. Please call 212-279-1902 Customer Service Rep GRAPHIC DESIGNER We are seeking dynamic Customer Major apparel co. seeks graphic designer COMMERCIAL Service oriented individuals with great with junior girls experience. Individual communication and typing skills needed must be creative and detail oriented. REAL ESTATE to work on behalf of our company this Responsibilities include executing the Service Representative will earn up to art from start to finished packages for President - Women’s Bridge $$$Open $3000 monthly any job experience production. Will work with mock up Controller $85 to $125K needed. E-mail if interested at: samples and embroidery dept. Must be Shipping Logistics to $50K [email protected] able to work in fast paced environment. Production Coordinator $40 - 50K E-mail resumes to: A/P, A/R Chargeback’s $40 - 50K [email protected] Call 212-213-6381 or email resume to: Design and Merchandising Assistant [email protected] 1407 BROADWAY Immediate opportunity for skilled and SHOWROOMS/OFFICES detail-oriented assistant at this busy GETTINGER MGMT DESIGNERS and successful women’s wear manu- Bob Forman 212-944-6094 x13 facturer; Responsibilities: fabric/trim At Ann Taylor, we recognize that sourcing with domestic vendors, prod- Product Development DIRECTOR OF SALES uct development with Asia offices, Alexis Bittar, Inc. is looking for a director talented associates are a great general merchandising tasks, includ- PATTERN MKRS (5) $85K Collection Market. Will relocate to NY. Manager of sales. This department is responsible competitive advantage. We strive ing thorough follow-up, recoloring, Major apparel co seeks individual for for developing relationships & generating to match individual talents to the refabricating. Minimum 3 years relat- [email protected] or 212-947-3400 product development position. Responsi- business w/ key direct accounts domestic right role to create a perfect fit. ed industry exp. Email resumes to: bilities include reviewing design & international ranging from department [email protected] worksheets and coordinating information stores to smaller specialty based busi- Showroom /Office for Rent We are currently hiring for Design- between design dept and production nesses. All candidates must have expe- 389 Fifth Ave – 500 sf. / $1500 mon ers for both Ann Taylor Stores dept. Focus on sampling, fabric, and rience w/ sales & new business develop- Slat walled w/shelves & desks and LOFT. You may learn more DESIGNERS accessories. Must have good communica- ment as well as experience in managing Call Peter: 212-683-1900 HUMAN RESOURCES tion, organization, and computer skills. & motivating a team of account execu- and apply online at : Men’s Activewear $60K Garment construction knowledge, fabric tives. The individual we are looking to Must have 2+yrs Men’s active wear exp DIRECTOR Showroom to Share www.anntaylorcareers.com A major multi-divisional apparel company development, and Wal-mart experience a hire must be extremely well organized, 1407 Broadway. Get your own office. Men’s Collection $65K is seeking a Human Resources Director plus. Must be able to travel overseas. confident and charismatic and have a Beautiful. Fully Furnished. 2+ yrs exp Men’s denim twills & wovens for their fast paced New York Office. E-mail resumes to: proven record of sales success in high- Contact Mark @ 818.970.3327 E-mail: [email protected] In this position, this candidate will [email protected] end fashion. Candidates should have at KARLYN FASHION RECRUITERS manage the Human Resources functions least 7 - 10 years experience as a sales ACCESSORY JOBS of the company. director for fashion based company. Account Exec - -EXP ONLY$$$+ Send resume w/ salary requirements to: Designer - PET ACCESSORIES - EXP!!! A minimum of 10 years experience [email protected] Graphic Artist-Watches/Disney Exp to 80K Exp’d RTW Designer working in the field of human resources Belt Sales, Private Label EXP!!! $$$+ High-end daywear/eveningwear house is required preferably with retail and PRODUCT DEVELOPMENT....TO $90K ACCESSORY EXECUTIVES, INC seeks a senior designer with 10+ years manufacturing experience. Intimates, Construction H/W V.S 5th Ave Call for details on jobs@ (212)213-6386 RTW experience in A-Z development Responsibilities will include: all levels Jennifer Glenn SRI Search 212-465-8300 Email resumes: [email protected] of the collection and all related Design of recruitment, employee benefit adminis- [email protected] 385 5th Ave./SEC 36 St www.srisearch.com Premier Ladies Accessories Dep’t activities. Must be able to lend tration, organizational development, per- Showroom Bldg. Unit of 325 SF. significant creative & technical influence formance management, 401K, employee Admin Front & Back Office and lead the design team in sourcing, Owner Management Production, Design & Sales relations/employment law & compliance. 212-843-5400 Floor Plans on Website trend analysis, costing, supervision of E-mail: [email protected] pattern/sample hands, and producing a We are seeking a team player with the www.HilsonManagement.com Visit our website: www.karlyn.com Executive Sales Associate comprehensive day /evening collection ability to work with all levels of manage- Major apparel company seeks Executive plan. Major design house exper. is a ment, who is detail oriented, highly or- PRODUCTION COORDINATOR Sales Associate for children’s wear-all plus. Qualified individuals may respond ganized with strong interpersonal and Midtown importer of junior needs Produc- size ranges. Individual will be working with resume and min. salary req. in communication skills. Excel and word tion Coordinator, MUST have garment with mid tier and department store ASSISTANT DESIGNER confidence to: computer skills required. industry experience, speak & write Leading Sweater Co seeks well organ- [email protected] accounts and must have experience Chinese plus. Send resume to: dealing with buyers. Excellent salary ized creative asst designer to join our We are a leader in our industry & offer [email protected] missy team. Must be proficient in color competitive salaries & comprehensive and comprehensive benefits package. matters PhotoShop/Illustrator computer benefits. Email resume with salary history Email resumes: [email protected] software creating tech detail packages. & subject header; HR & your name to: Strong sketching, specing & layout [email protected] skills a must. Minimum 1-2 years fash- Equal Opportunity Employer ion industry experience. Send resume to: [email protected] FASHION CAREER OPPORTUNITIES Samplemaker Ileen Raskin, Apparel 212-213-6381 Growing Women’s couture co. seeks CAD-GRAPHICS-FABRIC PRINTING highly skilled and exp’d individual. Sales Agent Nancy Bottali, Accessories 212-213-6386 Well established trim company looking U4ia-Photoshp-Illustr: 212 679 6400 Ed Kret, Textiles/Apparel 212-213-6384 Stable position. Emphasis on evening. www.sanodesignservices.com for sreious well connected salesperson ASST DESIGNER - JR’s [email protected] * JOBS *JOBS *JOBS * Please call 212-869-2296 or fax resume Artist Girls-Boys-Jrs. - Mens - $HI to 212-869-2236 to carry button line in New York an Leading Sweater Co seeks well organ- surrounding area. Please fax resume PATTERN/SAMPLES ized creative asst designer to join our www.raskinexecsearch.com Designer-Assist-Assoc Boy-Girl-Jr. Production Coord Import Apparel Walmart Exp $HI to 514-745-8710 Attn: Carol or John. Garment center location. Professional Junior team. Must be proficient in col- E-mail to: [email protected] /Reliable Quality. Men & women all style. or matters, Photoshop/Illustrator com- Production Mgr-Assist-Coordinators Low Cost. Small production. 212-563-3331 puter software creating tech detail Financial Controller Sales-Kid’s Apparel-Mass Mkt or Mid Tier $HI packages. Strong sketching, specing & Technical Designer & Assistants Leading lingerie manufacturer seeks Call B. Murphy(212)643-8090; fax 643-8127 Patterns/Samples/Production layout skills a must. Minimum 1-2 financial controller. Technical Design Asst Any Style. We do Bridal/Evening years fashion industry experience. Responsibilities include GL, payroll, Technical Design Assistant needed for custom made & wholesale. Sent resume to: [email protected] AP, and month end financial report- Designer Contemporary label. Duties Call: 212-278-0608/646-441-0950 ing. Must be detail oriented, with to include preparing initial tech paks SEVEN7 JEANS/KITSON excellent organization and follow-up. including specs and sketches. Follow Major domestic & int’l apparel co located PATTERNS, SAMPLES, CAD ARTIST PT & FT 5+ yrs. apparel industry experience a PATTERNMAKER up with fittings required. Candidates in NYC seeks energetic Sales Exec to Growing home tex co seeking team must, bachelor’s degree in finance Major apparel co. seeks girls pattern- should have a design background with drive existing & pioneering new busi- PRODUCTIONS player, responsible. 3 years exp. Must and/or accounting preferred. Please maker sizes 4-16. Must have children’s strong technical skills/patternmaking nesses. Must have 3-5 years exp in the All lines, Any styles. Fine Fast Service. be proficient with CAD, Photoshop & Ned email resume with salary history to wear experience. E-mail resume to knowledge. 1-3 years experience required. industry. Must have references. Please Call Sherry 212-719-0622. graphics. Fax resume to: 212-889-3283 [email protected] [email protected] Contact: [email protected] email: [email protected]