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Fete Accompli John Galliano Knows How to Have a Good Time

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Fete Accompli John Galliano Knows How to Have a Good Time ▲ RETAIL: NEWS: J. Crew’s Burberry new FASHION: wary Collection Donatella about store, third page 4. Versace to show quarter, in Beijing, 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 Sportswear 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 dresses. 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, Page8 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 China, 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-shirt. 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.
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