BEAUCHAMP EXITS SUSAN DELL/2 JEWELRY SWOOSHES NET/8 Women’sWWD Wear Daily • The Retailers’MONDAY Daily Newspaper • March 17, 2003 Vol. 185, No. 54 $2.00 Accessories/Innerwear/Legwear Snow Way PARIS — Snow bunnies who like to stay warm while looking chic will be delighted with this season’s new offerings. Michael Kors, for example, created white minks, pink powder-puff chubbies and checkerboard furs for Celine. Like those, many looks in his stylish collection — one of his best — also had a touch of the Sixties. Kors created some great accessories, too, among them a fur hat with pom-poms, shown here with an embroidered and sequined coat. For more on fall’s little extras, see pages 6 and 7.
Small-Town Charmer: Boscov’s Bucks Trend Of Regional Meltdown
By David Moin WYOMISSING, Pa. — For Boscov’s, thinking out of the box means putting more into it. Like homemade fudge at $4 a pound, $14 neck massagers, $20 insulated Thermos pump pots, or $7,000 Hitachi plasma TVs — indulgences that shoppers in the blue-collar Rust Belt don’t necessarily require, and in some cases yield low margins. They’re more apt to go for the H.I. Hummel figurines, or Hawaiian shirts. “What’s more fun than looking at See Boscov’s, Page20 PHOTO BY PHOTO GIOVANNI BY GIANNONI 2 Beauchamp Exits Susan Dell WWDMONDAY Accessories/Innerwear/Legwear By Eric Wilson gories such as wellness, home, food and wine, looking at what NEW YORK— Linda Beauchamp Beauchamp described as “what FASHION has resigned as president of is going to be the next step for the Fall runways saw an eclectic accessories mix, from space cases at Marc Susan Dell Inc. after three years new generation.” 6 Jacobs, Fendi and Versus, to chic styles at Oscar de la Renta and Ralph Lauren. to focus on her own consulting “I might be able to tap into company, Vision in Commerce, some of the instincts I have and which will take Susan Dell on as work on a broader base,” Beau- GENERAL its first client. champ said. “But Susan is still my Regional department store chain Boscov’s is under assault from Wal-Mart, Target, Kohl’s and a host of others. Here’s how it plans to stay vital. WWD, MONDAY, MARCH 17, 2003 WWD, MONDAY, Beauchamp, a former presi- top priority right now and I have a 1 dent of men’s wear at Donna noncompete clause with anybody The current economy and war fears aside, forecasters are worried about a Karan and DKNY, joined Susan else in the fashion business.” 2 longer-lasting downturn, and say it was in motion well before Sept. 11. Dell to help turn the Texas design- Dell said the arrangement will er’s fledgling ready-to-wear busi- allow her to continue to work EYE: Rocking with Kiera Chaplin (as in Charlie’s granddaughter)…renovating ness into a nationally known fash- with Beauchamp, while allowing 4 with Amanda Ferragamo…plus Scoops. Susan Dell and Linda Beauchamp ion line, notable for more than her to develop new opportunities Obituaries...... 23 Dell’s marital connection to one of for a replacement, she said. for herself. Dell has been design- Classified Advertisements ...... 22-23 ing for more than a decade, but the richest men in America, Dell “I think there are other things To e-mail reporters and editors at WWD, the address is Computer founder Michael Dell. in life right now that could be very expanded her scope with a full [email protected], using the individual's name. But as Dell’s business has quickly rewarding,” Beauchamp said. collection in 1999, when she developed with sales of close to $2 “Taking myself out of the day-to- opened her store in Austin. SUBSCRIPTION RATES U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. million — generated entirely day operations will give me a Beauchamp had also consult- All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. through trunk shows, a Web site broader point of view in terms of ed for other companies between Please allow 6-8 weeks for service to start. Individual subscription information: (800) 289-0273; outside U.S. (818) 487-4526; group subscription information (856) 786-0963. and Dell’s own store in Austin, being able to focus on areas that the time she left Donna Karan in Postmaster: Send address changes to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. Tex., — Beauchamp said she felt it are a little more lifestyle driven.” 1998, after seven years of building WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional was an appropriate time to ex- Beauchamp’s company, based the company’s men’s business, issue every month except July, and two additional issues in April and August, by Fairchild Publications, Inc. a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. plore other areas of her interest. in New York, will target brand and before that worked in retail WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., The company will be looking consulting for companies in cate- at Saks Fifth Avenue and Macy’s. a subsidiary of Advance Publications Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage or retrieval system, except as may be expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 Periodicals postage paid at New York, NY and other offices. Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9 GST # 88654-9096-RM 0001 Canada Publications Agreement # 40032712 Printed in the U.S.A. All signed articles published in the paper represent solely the individual opinion of the writer and not those of Stock Market Outlook: Bad to Worse WOMEN’S WEAR DAILY. For Web site access, log on to www.WWD.com By Vicki M. Young chasing it, during this cold, fright- nine regions of the country, with ening winter. Last month’s the Rocky Mountain and East NEW YORK — The equity mar- Consumer Confidence Index, North Central regions showing MONDAY: Material World, Miami Beach (through kets are braced for a tough 2003, provided by The Conference the biggest declines in February. Wednesday). regardless of what happens in Board, was the lowest in 10 years, Lynn Franco, director at the Ideacomo textile show, Cernobbio, Italy (through Middle Eastern deserts or South dropping 14.8 points to a lower- Conference Board, said in a state- Wednesday). American oil fields. than-expected 64, the worst ment, “Job worries, rising energy At the forefront, of course, are showing since October 1993’s 60.5 costs and war fears have lowered TUESDAY: Fashion Week of the Americas, Miami concerns over the possibility of mark. This performance suggests confidence from the East Coast to Beach (through Saturday). war with Iraq, followed by con- continued pressure on retailers, the West Coast and in all areas in Charming Shoppes reports fourth-quarter results. cerns about North Korea. Other already deprived of top-line between.” The board noted that geopolitical issues, such as Ven- growth by a lackluster holiday job opportunities across America, WEDNESDAY: Nike’s third-quarter results. ezuela, have added to the run-up season and a winter stormy measured by the Help-Wanted in energy costs, which in turn enough to keep weekend shop- Index, have also dwindled. THURSDAY: Wet Seal’s fourth quarter. has depressed consumer spend- pers away from the malls. Richard Hastings, chief econ- Mipel leather goods show, Milan (through Sunday). ing on discretionary items. As re- Even when the weather im- omist for Cyber Business Credit, ported, Salomon Smith Barney proves in colder regions of the said, “The economy is headed FRIDAY: The Labor Department reports on the estimates that a 1 cent increase U.S., consumer attitudes might down. We are marching toward Consumer Price Index. in the price of gasoline trans- not: The Expectations compo- a bad intersection. The prob- International Vision Expo East, New York (through lates into a $1 billion decrease in nent of the confidence index fell lems, however, have little to do Sunday).
retail spending. 15.5 points to 65.6 in February. with Iraq. All of the problems COMING THIS WEEK Consumers already have indi- The Conference Board noted were in place prior to [the] Sept. SATURDAY: StyleMax show, Chicago (through March 25). cated that they’re feeling the earlier this month that consumer 11 [terrorist attacks].” heat, or at least the cost of pur- confidence has tumbled in all Continued on page 19 Wholesale Apparel Prices Dip Again In Brief DAS HOURS: The German parliament approved an amendment, By Kristi Ellis ducers are having to slash prices are primarily being impacted by effective June 1, allowing stores to stay open until 8 p.m. Saturdays, to hold on to market share.” fierce competition and imports. as opposed to 6 p.m. on the first Saturday of the month, and 4 p.m. WASHINGTON — The deflation- He said companies will con- “Domestic apparel producers otherwise. Weekday closing time remains 8 p.m., except for stores in ary cycle continued in February, tinue to feel the squeeze on are really feeling the pinch,” he railway stations and special tourist zones. Sunday openings remain as wholesale prices for domesti- margins due to unused capacity said. “They are struggling with largely taboo, though local authorities may designate a maximum of cally produced women’s apparel and falling prices. the whole import phenomenon four Sundays each year as “Shop Open Sundays,” in which stores slid 1.5 percent. “Over the course of the year, and facing cut-throat competi- can now stay open until 8 p.m. instead of 2 p.m. on those Sundays. Compared with February we will see many more plant tion overseas, and they are get- 2002, domestic wholesale prices closings and layoffs accelerat- ting pounded.” WALMEX IN CLEAR: Mexico’s antitrust agency closed its investi- for women’s fell 0.7 percent, ac- ing,” said McMillion. “The con- Among the categories of gation into the purchasing practices of Wal-Mart Stores Inc.’s south- cording to the Labor Depart- tinual price declines puts the women’s apparel tracked by the of-the-border division Walmex, under the condition that the retailer ment’s Producer Price Index re- profitability of more companies government with notable whole- follow a code of conduct when dealing with suppliers, said pub- leased Friday. in question.” sale price fluctuations were lished reports. In related Wal-Mart news, the stores is in talks to Wholesale prices for all ap- Meanwhile, wholesale prices hosiery, which plunged 7.1 per- acquire a significant stake in the supermarket chain Safeway PLC parel fell sharply by 0.9 percent for all finished goods for the cent last month but remained ahead of a ruling by the U.K. Department of Trade and Industry. last month and declined 0.5 per- month rose 1 percent, but econ- flat against a year ago, and cent against the year-ago month. omists blamed most of the in- dresses, which fell 3.4 percent PERRY ELLIS APPOINTS EVP SALES: Perry Ellis Prices for girls’, children’s and crease on soaring energy prices. in February and also remained International, Inc. announced Friday the appointment of Michael infants’ apparel bucked the Minus volatile energy and food flat against the year-ago month. Nicklas as executive vice president of sales for Jantzen, Inc., a trend, rising 2.9 percent in Feb- prices, the core index fell a sea- Producer prices for slacks, subsidiary of Perry Ellis. Nicklas will oversee all swimwear-re- ruary, although they were flat sonally adjusted 0.5 percent, ac- jeans and dungarees fell 2.2 per- lated apparel and accessories for Jantzen, Nike and Tommy against year-ago levels. cording to John Mothersole, sen- cent last month and were even Hilfiger. Nicklas most recently was senior vice president and na- Textile mill producer prices ior economist at Global Insight. to a year ago, while wholesale tional sales manager, department stores for the Speedo division also fell in February by 0.6 per- “We are getting these big ener- prices of separate tailored suit of Authentic Fitness. Nicklas will report directly to Oscar cent and dipped 0.5 percent gy-induced price increases, yet un- jackets fell 1.4 percent in the Feldenkreis, president and chief operating officer of Perry Ellis. year-to-year. derlying core prices are falling,” month and remained flat year- “There is just no pricing Mothersole said. “There is a di- over-year. On the plus side, power and it goes up and down chotomy between cost pressures prices for bathing suits rose 10.6 the supply chain,” said Charles manufacturers are obviously get- percent in February, but re- W. McMillion, chief economist at ting hit with and their [inability] mained flat against a year ago, Clarification MBG Information Services. “With to push those through to final while prices for skirts rose 4.1 The fashion agency KraftWorks, headed by Neil Kraft, created demand weakening, customer product prices, and as a result percent last month and edged the latest ad campaign for Cointreau. This was not clear in a competition intensifying and margins are still being squeezed.” up 0.3 percent compared with Memo Pad item on page 14, Friday. enormous unused capacity, pro- Mothersole said apparel prices February 2002. 3 WWD, MONDAY, MARCH 17, 2003 ™ Chief financial officer Kyle Meanwhile, Manny Marrero, adding “We’re a number of consumer and apparel goods and technology sectors. Wescoat touted the international and production focus of licensing and brand development group Cherokee Inc. The Nuys, Van Calif.-based firm, broker of the 2000 licensing deal with Target and Mossimo Inc., introduced the Cherokee brand to France’s Tesco Carrefour SA and the U.K.’s last fall. it Recently, signed with Hearst Publications to represent the House Beautiful brand. chief financial officer at Santa Monica-based Mossimo, stressed the company’s growth strategy through Target’s expansion and its acquisition interest in other brands, although none are in the pipeline. Other sales drivers are new product categories and Mossimo’s international push, noting its alliance with the Zellers division of Hudson’s Bay Co. in Canada that includes Mossimo clothing and home accents bow- ing this spring to replace the Martha Stewart brand. designers to the group to grow our business in housewares,” Marrero said. With With his com- www.merchandisemart.com “We see the “We business women’s he ap- said women’s Currently, Schoenfeld declined to dis- Attracting about 250 atten- Vans’ CEO Schoenfeld CEO Vans’ Rebound Women’s Sees Sarkisian-Miller Nola By LOS ANGELES — pany stock down about 70 per- cent in the last year, Vans Inc. chief executive Gary Schoenfeld had a tough sell on his hands, but he piqued potential investor interest with his renewed mer- chandising focus on women. as very significant and exciting. It used to approach 30 to 40 per- cent of our business, and we’re not uncomfortable about getting it back to that,” Schoenfeld told an audience at the fourth annual B. Riley & Co. Investor Confer- ence last Thursday at the Los Angeles Airport Marriott hotel. parel and footwear make up “the low-double-digit range” of overall sales. He said women’s growth could occur in the next six to 18 months for the Santa Fe Springs, Calif.-based firm. cuss specifics prior to the compa- ny’s earnings conference call this Thursday. dees, the conference showcased 25-minute presentations from 48 companies, primarily from the Find it all in Chicago! STYLEMAX The Merchandise Mart resources — all in one convenient location. or call ServicesMart Travel at 800/528-8700. visit our site Web or call 800/677-6278. March 22–25, 2003 Continued on page 18 More than 4,000 top of apparel the and nation’s accessory For discounted hotel and airline rates, log on to site our Web Leading specialty stores everywhere are choosing STYLEMAX! For more information or to register for STYLEMAX, Icahn’s Icahn’s point is that in some he knew about the oil and gas industry. Icahn put him in his place, telling the “I’m banker, not here for an interview.” instances there is still an “atti- tude about how outsiders have no right to come in and make a bid,” somewhat akin to telling citizens to leave the war to the generals. — Carl Icahn Carl — THE ULTIMATE FASHION RESOURCE — FASHION CHICAGO THE ULTIMATE The M&A legend recalled an He was fairly critical of U.S. “Shareholders’ concerns are believe that shareholders have any rights. Management thinks that they own the company,” he said. incident involving his $4 billion bid to buy Phillips Petroleum. One of the investment bankers called him to arrange a meeting, and then proceeded to ask ques- tions ranging from why he want- ed to buy the company to what chief executives and boards of directors, asserting that the real surprise about Enron, Tyco and other recent examples of corpo- rate malfeasance was that they didn’t occur He sooner. felt that, in these situations and many others, the obligation to reward shareholders’ investments has been all but forgotten. nonexistent. Companies do not ” Carl Icahn, a leg-
The poison pill is supposed to give to supposed is pill poison The He cited Perry Ellis Inter- “I do think that a lot of them
He made that comment Thurs- “ shareholders rights, but the only thing only the but rights, shareholders not right the is shareholder a give they money. make to national Inc., itself in the process of acquiring Salant Corp., as one of the managerial outperformers. have been knocked down a great deal. Some will be Chapter 11 fil- ings. Some are cheap, but you have to do something about man- agement. [Some others] are just well run and they’re cheap at the same time,” Icahn pointed out. day in an interview following his presentation at the “The Buyouts Symposium,” hosted by Thomson Venture Economics, at the Wal- dorf Astoria here. By Vicki M. Young M. Vicki By NEW YORK — end in the world of mergers and acquisitions, believes that there are some good investment op- retail and apparel. portunities in Malfeasance Riles Carl Icahn Carl Riles Malfeasance 4 Kiera Amanda Ferragamo in London. Charlie’s Angel Chaplin NEW YORK — She might look like an angel, but Kiera Chaplin is hell-bent on proving she’s not. She’s got Oona’s good looks, Charlie’s rebellious streak and she’s ready to rock. The screen legend’s 20-year-old granddaughter, who is busy recording her first album in Los Angeles, earned a reputation posing for steamy photos during her modeling career, “but I was a rebel way before that,” she says. “It’s
WWD, MONDAY, MARCH 17, 2003 WWD, MONDAY, in my blood. I don’t know if it’s the Chaplin side or the Irish side, but I’ve always been tough.” Modeling was just “a phase. It’s what I did to get away from home. — Kiera” Chaplin She certainly shook things up dur- ing her school days in Switzerland. “I was a nightmare,” admits Chaplin, who was born in Ireland. “The teach- ers hated me and I was always in trouble. When Basseville, Chaplin runs I was 13, I dyed my hair a Swiss entertainment every color.” company focused on It’s no surprise that product placement, film the album she’s putting production and distribu- together is full-throttled, tion and collecting film raging electro-rock. “I libraries. like trash rock, punk and And who in techno,” says Chaplin, Hollywood wouldn’t take who cites both Marilyn a meeting with a Manson and Björk as in- Chaplin? Throughout fluences. “When I was her life, people have re- modeling I was asked by acted strongly to her a couple of record labels iconic last name, but to sing something that never more so than in was all put together, you The new “Fashion Lounge” CD. Los Angeles, where she know, like Britney has lived for the past Tuscan Stakes Spears — a fake thing. But I was never in- year-and-a-half. “It’s really weird,” she LONDON — Amanda Ferragamo had never thought about writing terested in doing that.” says. “You meet some people who will hate a book — “I am heavily dyslexic,” she says — until a few years ago And though over the past few years you for it and some people who will love when she woke up at 3 a.m. and began penning a story about a Chaplin has appeared in several small you for it.” eye® bombed-out villa, a Scottish terrier and the team of Italian con- movies, it will take an equally edgy role to Though she couldn’t be less interested struction workers she may — or may not — have tamed. coax her back onto the set. “I’m still open in modeling, Chaplin nonetheless con- The result is “Seven Years in Tuscany,” Ferragamo’s account of to reading scripts,” she says, “but I’m look- tributed a electro-peppy song to “Fashion the time she spent rebuilding Il Borro, the 1,750-acre Tuscan estate that she ing for the perfect roles. I see myself in a Lounge,” a dance music CD compiled by and her husband, Ferruccio Ferragamo, from whom she is now separated, certain way and I won’t just play anybody. I Paolo Zampolli of ID Models, to be re- bought in 1993. want tough parts, the kind that Angelina leased Tuesday. “Modeling was just a “I wrote this in three months, by hand, from memory,” says Ferragamo, who Jolie does, or action movies, a really cool phase,” she says. “It’s what I did to get has returned to her native England after living in Florence since the late comedy or maybe a scary movie.” away from home and do my own thing.” Sixties. “And yes, I’d say it was a purge.” Lately, Hollywood’s business side has And Chaplin, in case you hadn’t noticed, is The book, which will be launched in New York provided more fascination. In partnership dead set on doing her own thing. with a book party at Saks Fifth Avenue on April 3, is with her father, Eugene, and fiancé, Ale de — Jessica Kerwin one part how-to manual — “Skirting boards are im- portant and they need to be quite deep,” she writes — and one part nesting philosophy: “A house can almost talk to you: Standing in ruins, it will tell you through empty windows and stairs going nowhere how it was, who lived in it.” EYE SCOOP But Ferragamo also devotes pages to the infamous HAUTE IN HERRE: It might have Tuscan laborers who were clearly not used to having been too racy for prime-time, an English signora not only telling them what to do, but curator Harold Koda is happy but asking them to do it over again. to include the scandalously “I don’t think they ever expected me, as a woman, sheer Chanel gown Jennifer to be there, talking about the density of the cement,” Lopez wore to the Oscars in she says. The workers were required not to re-lay tiles 2001 in the upcoming that weren’t quite right, tear down a new staircase because it looked “too ‘Gone “Goddess” exhibition at the With the Wind,’” and work through rain and snow. Metropolitan Museum of Art’s “There was a slight drizzle one day, so everyone decided to take a break,” Costume Institute. He compares Ferragamo says. “I said ‘What is this break for?’ In England, if we stopped for the diva’s look with the nipple- the weather, we’d all be living in tents!” The workers, in turn, poked fun at her revealing wet draperies worn by Italian, often wandered off the job, and secretly named the stray cat they found the Nike of Samothrace and her Screen after her. peers, sculpted during the goddess Today, the 19th-century villa, which had been bombed to bits by the Germans Hellenistic age. Jennifer The “Goddess” A Gucci during World War II, serves as the Ferragamo family’s country home. The grounds “I’m trying to juxtapose Lopez. party invite. goddess. have been transformed into a working farm and the medieval village restored. something contemporary and In the foreword to the book, Ferragamo’s brother, Sir Michael Peat, who re- very heated up with this notion of connecting it to the roots of classicism,” he said. “Today, designers signed as the private secretary to Prince Charles last week, and was Queen are using classicism for an explicitly erotic end.” Elizabeth’s former accountant, pays tribute to his sister’s chutzpah. Of course, Tom Ford, for one, knows all about explicit eroticism. Ford will co-chair the Costume “Neither Amanda nor Ferruccio had any significant experience of restoring Institute benefit on April 28, along with Vogue’s Anna Wintour and Nicole Kidman, and dresses from his old buildings or of land management, and I wondered whether they fully ap- fall 2002 Gucci and Yves Saint Laurent collections will be included in the show. Sure, there will be preciated what they were taking on,” he writes. perfectly draped Mme. Grès dresses on display, too, but the saucy contemporary angle ensures “a Although Amanda has not returned to Il Borro since she left in the summer bigger spectrum of the public is going to be able to enjoy the show,” said Koda. of 2000, she insists she doesn’t miss it. Just to send their steamy point home, last week gala invitations went out printed with a blush- “It’s done, over. It comes into my dreams, though. And when I’m walking inducing image courtesy of Helmut Newton. What’s next, Nelly as MC? past a building site, I can’t help but think to myself ‘Where’s the piping going to go? And how is the electrical wiring going to be installed?’” FAMILY FIRST: Renée Zellweger made her way to Pace, a Laurel Canyon spot frequented by area locals, Today, she writes a column for 213, a Los Angeles magazine, and is carving for a quiet dinner with the family on Thursday night. But when George Clooney showed up — on his out a new life in London. “Now I want to live! I want time to go to the hair- vintage motorcycle, no less — the Zellweger clan could hardly compete. The Oscar nominee introduced dresser, to go to lunch, to travel, to be a woman,” she says. What would the Clooney all around, then turned her attention on Clooney and Clooney alone, chatting with the workmen think of that? heartthrob all night.
— Samantha Conti INVITE GODDESS VESPA/WIREIMAGE; JEFF BY CHAPLIN JENKINS; TIM BY PHOTOS FERRAGAMO GUCCI OF COURTESY SARDELLA;GUCCI DONATO BY LOPEZ MITRA; ROBERT BY 5 WWD, MONDAY, MARCH 17, 2003 ” — Kristin Larson Kristin — Bucciarelli, previously pres- In a related move, Anne also will oversee the men’s Axcess brand sold in Kohl’s stores. and Mervyn’s ident of Liz Claiborne’s acces- sories group, will report to Trudy Sullivan, also executive vice president, along with Wi- nans, who was president of Liz Claiborne casual Bucciarelli is responsible brands. for the design, development and merchandising of accessories and product extensions for the Liz Claiborne portfolio. Winans’ role will now encompass Liz Claiborne casual, collection and Liz Claiborne Woman, its plus-size division. Cashill has been appointed vice president of corporate merchandising and design. Previously, she was the direc- tor of this department. Cashill is responsible for the commu- nication of all product and lifestyle trend information. — Paul R. Charron, Liz Claiborne Inc. Claiborne Liz Charron, R. Paul — Liz Claiborne These appointments bring further “These appointments bring McCluskey, formerly presi- On Friday, On the Friday, firm appoint- “ clarity and consistency to the management structure that deals with our customers on a daily basis. Claiborne Promotes Claiborne President Group to 4 further clarity and consistency to the management structure that deals with our customers on a daily basis,” R. Paul Char- ron, chairman and chief execu- said in a statement. tive officer, dent of special markets over- seeing the company’s moderate brands, and who Murray, had been president of Claiborne, DKNY Jeans for men and Crazy Horse men’s, will both report to Angela Ahrendts, ex- ecutive vice president. Murray NEW YORK — Inc. has promoted four mem- bers of its executive team in a move to better support its do- mestic markets and products. ed Ed Bucciarelli, Helen Mc- Karen Murray Cluskey, and to group Winans president Fritz roles. A company spokeswoman said these are all new positions and not related to anyone leav- ing or being promoted. So how has Bluefly avoided As reported, Bluefly sus- and experience provided by Internet retailers is surpassing that provided by traditional brick-and-mortar retailers.” going the way Internet of firms, as well as so the many promotional sock “When puppet? you’re looking to raise there’s money, nothing like hav- ing a great team that has, in most cases, performed up to or Seiff. its plans,” said exceeded tained a $1.7 million loss during the fourth quarter, partially at- tributable to marketing initia- tives, which helped lift sales 24.7 percent to $9.9 million. “I don’t think [Soros] ever in- Companies with a business of love with all things Web. vested in us because they wanted to invest in the Internet,” said president and chief executive Ken Seiff in a telephone inter- the “From view. early days, their interest was driven by our busi- ness model and our team and the ability of the Internet to modern- industry.” ize the off-price may be focus down on in the Web the stock market, but they are not out, he said. “The perform- ances of Internet companies that are still here today have been nothing short of extraordinary. The levels of customer service The Bluefly home page. Bluefly Inc. has a
So far, So Soros far, has pumped Due to the financing, the con- Bluefly investors were de- This latest infusion in- Additionally, Soros Additionally, made a In return, Bluefly issued Soros The financier granted the off- about $50 million into Bluefly, more than $40 million of which was invested after March 2000 when investors began to fall out version price of the Series firm’s B and Series C Preferred Stock decreased to 76 cents from 93 cents. This will create a $225,000 noncash charge in the first quarter. lighted by Soros’ confidence and traded up shares of the firm 17 cents, or 22.1 percent, to close at 94 cents on the Nasdaq Friday. creased Soros’ stake in Bluefly to about 89.7 percent from near 86.9 percent. standby commitment to provide an standby commitment to provide additional $1 million in funding. about $7.1 million of its Series D Convertible Preferred Stock that will earn dividends at the rate of 12 percent annually, payable in cash or stock, at the company’s option, upon conversion. price fashion e-tailer $2 million in new capital, erased more than $3 million of its debt and exchanged $2.1 million of its Series 2002 Convertible Pre- ferred Stock. guardian angel in the form of George Soros and Soros Private Equity Partners. By Evan Clark Evan By NEW YORK — Soros Adds to Bluefly Capital Bluefly to Adds Soros 6 Ralph Lauren Prada Michael Kors WWD, MONDAY, MARCH 17, 2003 WWD, MONDAY,
Fall accessories are as eclectic as the season’s clothes, which ranged from ladylike, elegant looks slightly reminiscent of the Fifties or early Sixties to futuristic Space- Age styles. Ralph Lauren featured civilized chandelier earrings and sleek boots, for example, while mile-high platforms turned up at Christian Dior and wacky mukluks at Fendi. Meanwhile, bags ranged from Borbonese’s simple clutches to Matthew Williamson’s bold circles of leather, and fur versions were another new rage.
Gucci Matthew Williamson Balenciaga
Narciso Rodriguez The Body The Eclectic ID TURNER ID
7 WWD, MONDAY, MARCH 17, 2003 DAV AND MITRA ROBERT MAESTRI, DAVIDE GIANNONI, GIOVANNI FEUGERE, STEPHANE ERICKSEN, KYLE CHINSEE, GEORGE AQUINO, JOHN BY PHOTOS Dolce & Gabbana Fendi Alexander McQueen Dior Christian Chanel Borbonese Marc by Marc Jacobs Oscar de la Renta Anna Sui Louis Vuitton 8 Accessories/Fine Jewelry Report A Quiet Renaissance in Online Jewelry Sales By Melanie Kletter Ice.com began as Buyjewel.com in 1999 and was pur- chased in 2000 by Idealab, the Internet incubator compa- NEW YORK — Online jewelry sites flourished in the late ny that fostered companies such as Eve.com, Jobs.com Nineties during the Internet boom, but many of those and Tickets.com, many of whom are no longer in business. were fly-by-night businesses that either went bankrupt Under Idealab, the name was changed and before even a or fell apart as the ’Net sector crashed. year had passed the climate for Web companies had gone WWD, MONDAY, MARCH 17, 2003 WWD, MONDAY, Now, in more somber times, online fine jewelry sales south and Idealab planned to close the business, said are experiencing a quiet renaissance. Jewelry was a Mayer Gniwisch, a founder of Ice.com and the current di- standout category online during the 2002 holiday sea- rector of product development. son, both at so-called pure-play online sites and for the “We bought the name back and are now privately Internet divisions of firms such as Tiffany, Zales and owned,” said Gniwisch. “We had a lot of debt to settle, but Wal-Mart, and sales have continued to climb this year. we did, and now we are profitable.” In 2002, online jewelry sales totaled $1.1 billion, up Last year, Ice.com had sales of about $22 million and from $900 million in 2001, according to Jupiter Research, its business is growing steadily, Gniwisch said. The which measures Web traffic and sales. This number rep- Montreal-based company is run by Mayer and his two resents a healthy chunk of total fine jewelry sales of $41 brothers and a brother-in-law, all of whom also happen billion. Perhaps more importantly, some of these sites are to be rabbis, although they are not practicing now. starting to achieve profitability, a concept foreign to many Goldspeed.com, meanwhile, was founded about five of the early online jewelry merchants. years ago and specializes in mid-range fine jewelry ranging Analysts and market watchers attribute the growth in in price from about $50 to $7,000, according to Kugelman. large part to an increased comfort level of people shop- “We run the business like an old-fashioned business,” ping the Web, as well as improved levels of service and he noted. “We are focused on pleasing the customer, not operations from the sites still in business. on pleasing the investor.” “A few years ago, shoppers were largely buying CDs Among the bricks-and-mortar jewelry crowd, online and books over the Internet, and now there are more sales are growing, although they are still a relatively small people buying categories with higher prices,” said Ken part of the overall business, said company executives. At Cassar, a senior analyst at Jupiter Research. Zales Jewelers, online sales are still less than 5 percent of “Every Internet business was an experiment,” said a overall volume, according to a company spokesman. spokesman for Bluenile.com, an Internet jewelry site. “Our site has been an evolution,” the spokesman said. “The ones still around are those businesses that are op- “Basically, now, we want our site to reflect our store ex- erated well and that are not just selling something on- perience as much as possible, since building our brand line for the sake of selling something online.” name is a key part of our overall strategy.” Another factor driving sales is price, since many jew- The best-performing items at zales.com are generally elry items sold online carry lower tags than comparable the less expensive merchandise, specifically items that items available at traditional jewelry stores. retail for less than $5,000, according to the spokesman. “Our prices are lower than jewelry sold in stores be- At Tiffany, direct marketing sales, a category that in- cause we don’t have overhead costs to keep the store cludes Internet, catalog and corporate business sales, and for things like showcases, carpets and security From top: Bluenile.com caters to male shoppers; Ice.com, like surged 11 percent to $179.2 million in 2002, representing guards,” said Neil Kugelman, chief executive officer at other online jewelry retailers, has achieved profitability. about 11 percent of overall sales. The site launched in Goldspeed.com. 1999 with only about 240 stockkeeping units and now The market leaders for pure-play sites now are many of whom may not always be comfortable shopping there are about 2,000 sku’s, according to Mark Aaron, vice Bluenile.com, Ice.com, Goldspeed.com and Diamond.com, in traditional jewelry stores. “Many men are confused by president of investor relations. according to analysts and market watchers. Among the the traditional process of buying jewelry,” said the compa- “Our Internet business has attracted a new customer, many online jewelry sites no longer in business are ny spokesman. “We offer a lot of information and try to people we believe that were historically intimated by Miadora.com, Adornis.com, Enjewel.com, Firstjewel- make the buying experience very educational.” Tiffany and afraid to cross the threshold into the store,” ry.com, Ijewelry.com and Jewelry.com, which has since The site started with engagement rings, but now car- said Aaron. “Now, they can visit Tiffany and take a peek been purchased by jewelry manufacturer Andin ries everything from pearls to 18-karat gold and dia- through our online business.” International, and relaunched as an information site. mond necklaces, with the bulk of sales still coming from While Tiffany doesn’t specifically break out the per- Ashford.com, which began as an online watch retail- engagement rings. Its sales surged to $72 million in 2002, formance of its Internet division, Aaron said sales were er, was one of the highest flyers, eventually going public. up from $48 million in 2001, and the company achieved up more than 50 percent in 2002 over 2001 and have al- However, the firm struggled to achieve profitability and profitability last year, the spokesman said. ready surpassed catalog sales. shore up its operations. The firm was sold twice during Many of the online-only sites are thriving without throw- One category not found on the Tiffany site is engage- 2002 and is now a division of Diamond.com. ing pricey luncheons and fancy events, and instead are fo- ment rings, a category that most of the other online jewel- Seattle-based Bluenile.com has been building up a fol- cused on achieving profitability and sales. Ice.com and ers push heavily. Aaron said, “We feel it’s an important lowing since its launch in 1999 by marketing to men — Goldspeed.com also say they have achieved profitability. enough purchase that people should come into the store.” The International Fashion Jewelry and Accessory Show IFJAG NEW YORK Where Design Means Business WJA’s past presidents and early founders. Be inspired by Eli Haas and Steven Kaiser of Kaiser Time. over 300 sources “Our goals are to continue to raise additional WJA Salutes Its Past money for our scholarship funds and increase of fashion design. our mentoring program,” Anna Martin, the cur- NEW YORK — After 20 years, the Women’s rent WJA president, told the crowd. “We also Jewelry Association still knows how to party. want to make WJA a global organization.” MAY 4TH - MAY 7TH The professional organization celebrated its The organization was founded in 1983 at the Roosevelt Hotel 20th anniversary March 3 with a lively cocktail behest of a small group of women in New Madison Avenue at 45th Street affair at Doubles in the Sherry Netherland England who felt that women needed their own 2 Blocks from Grand Central Terminal. Hotel here. Many of the WJA’s early members organization in the jewelry industry. The WJA Show hours 9am to 6pm. and past presidents came out to celebrate, in- now has more than 1,000 members, including cluding Gerry Gerwitz, Linda Goldstein, Tina men, and a wide range of activities and programs. INTERNATIONAL FASHION JEWELRY Seegal, Peggy Kirby, Rachel Rosin, Toni Lyn Martin said WJA will be celebrating its an- 914 .761. 9019 www.jewelrytradeshows.com Judd and Helene Fortunoff. The crowd also in- niversary all year, and noted that the group’s an- AND ACCESSORY GROUP Fashion Jewelry • Accessories • Gifts • Hair Accessories • Watches cluded industry executives such as Patricia niversary slogan is “Looking back with pride, Hambrecht of Harry Winston, diamond dealer looking forward with promise.” PHOTO BY STEVE EICHNER STEVE BY PHOTO Crystallized Attraction New Colors White Alabaster and Light Topaz
Swarovski Crystal makes a powerful statement! The two new colors, White Alabaster and Light Topaz, are exclusive innovations available only from Swarovski! White Alabaster, full of tenderness and refinement and Light Topaz, radiant, sunny and bright. Both colors evoke a strong sense of emotion, luck and grace. Jazz up your creations with these two new trend colors for the upcoming season and make Swarovski Crystal Fashion Components your own personal statement! For more information contact your Swarovski Sales Office: SWAROVSKI NORTH AMERICA LTD. · 1 Kenney Drive, Cranston, R.I. 02920-7935, USA · Tel. 001/401/781 8610, Fax 001/401/781 8373, Toll free: 1-800-463 0849 · SWAROVSKI CREATIVE SERVICE CENTER · 29 West 57th Street, 8th Floor, New York, NY 10019 · Tel. 001/212/935 4200, Fax 001/212/935 8800, Toll free 1-877-888 7980 · www.swarovski.com
New Color New Color New Bead New Cross Light Topaz White Alabaster Art. 5040 Art. 6866 10 Accessories Vendors Travel the Value Route By Marc Karimzadeh
NEW YORK — They’re facing a challenging road ahead, but accessories vendors are bracing themselves for the journey with improvements in quality, better value-price WWD, MONDAY, MARCH 17, 2003 WWD, MONDAY, ratios and more looks with longevity. During the market earlier this month, many firms launched their fall assortments to major department and specialty stores, which typically write the lion’s share of orders for the fall season that week. “Spring is starting to sell through and buyers are com- ing in with a positive attitude, looking to buy,” said Doreen Salerno, brand director at Adrienne Vittadini, which has been expanding its accessories assortment. “But the perceived value needs to be there. The con- sumer is addressing a lot of issues, from unem- ployment to war…but she wants to spend money on something she can feel great about.” For fall, Adrienne Vittadini honed in on or- Embossed leather and a touch of embroidery Nautica’s new handbags include looks for the beach and the ange and olive green colors with more struc- topped handbag trends at Adrienne Vittadini. soccer field, as well as the office. tured hobo shapes, resin handles, hardware and touches of embroidery. The company also managing director. from his signature resin snake to panther adornments, added evening bags to the collection, includ- Nautica Enterprises is furthering its for little structured bags in croc-like leather and paw- ing metallic alligator-like embossed leather reach into the women’s arena with the print metallics, pinstripe suede and red and black satin. and top-handle bags with jewel-like hard- launch of its new handbag collection. The line wholesales from $75 to $175, and distribution is ware. Wholesale prices range from Also produced under license by aimed at higher-end specialty and department stores. $74 to $84. Wathne, the first collection in- Sales projections are about $2 million, said Nathalie Michelle Hatch, designer at cludes a comprehensive range Martin Schettini, owner of the Martin Schettini jewelry Monsac, said: “Because the dol- of products with styles in ma- line and a sales consultant for the line. lar isn’t as strong as it had been terials such as denim, nylon Mallorca, Spain-based Dominique Guinabert present- against the euro, we have to find and embossed suede. ed a line of costume jewelry featuring bold Swarovski ways of keeping materials inter- Most of the bags are made crystals strung together in clusters and mixed with col- esting while maintaining price in cloth fabrics, not in leather, ored Spanish pearls for rings, bracelets and earrings. points…such as metallics, em- although some have leather Wholesale price points range from $29 for bracelets and bossings and laser processes.” reinforcements. There is a vari- rings to $165 for a heavy necklace. Donna Waxman, U.S. Last week, for example, the Bonjour is launching handbags for fall distribution. ety of sizes, including wristlets, agent, said the line targets specialty stores, with first- dollar was worth 0.93 euros. oversized totes, medium-size year sales projections of $250,000. “Novelty in the form of overembellishment is really handbags and messenger bags, and some come with an- Another newcomer was Majique, a jewelry brand from disappearing and being replaced by more interesting other smaller bag on the inside that can be separated London being distributed in the U.S. by Habitat, the New leathers and surface treatments,” said Roy Kean, owner and worn alone. Most of the collection has a sporty feel York-based costume jewelry and accessories company. of handbag showroom Accessories That Matter. that seems designed for moms on the soccer The contemporary collection includes some Key fall trends include: field and the beach, although some styles are semiprecious stones, as well as plenty of Embossed croc-like leather and metallics. for the office, as well. beads and wood. Among its top styles are Structured hobos and knitting bags. David Chu, Nautica’s vice chairman chandelier earrings, necklaces and cross Tapestry and discreet embroidery. and chief creative officer, is working Jewelry from Majique, pendants, mostly in silver, although Resin hardware and woven or embroidered straps. closely with the licensee to develop some is gold plated. Wholesale prices an English line now Charms and leather cords. the handbag collection. being distributed here. range from about $2.50 to $16. Orange and olive or moss green. “I am designing for a woman’s Marc Schwartz, president of “The revival of the Sixties is inspiring the metallic lifestyle needs,” Chu said. “There are Habitat, which primarily makes pri- trend,” said Robert Rokoff, creative director at handbag a lot of functional details and many vate label jewelry, expects first-year firm Maxx New York. “Consumers will be looking to go of the bags are versatile and can be volume for the line to hit between $1.5 to their department or better specialty stores to find used for a variety of occasions.” million and $2 million, targeting de- something new of good quality but that’s fashionable.” With retail prices of $30 to $200, partment and specialty stores. In “For fall, stores are looking for things that are happy,” Wathne expects the collection to gener- England, Majique is sold in department said Karen Ericksen, co-owner of Showroom Seven. ate wholesale sales of $3.5 million in the stores such as Harrods and Selfridge’s, as “People want to have something uplifting. Anything first season, according to a company well as some chains, including Top Shop dreary in terms of color is not selling.” spokeswoman. Distribution will be targeted and River Island. A slew of new or relaunched players entered the to Nautica’s existing distribution network, Costume jewelry firm Miriam Haskell relo- scene during market. Denim brand Bonjour launched which includes department and specialty stores, and cated its showroom and corporate offices to 390 Fifth its bags in a license with Wathne Ltd., which also manu- products will make their debut at retail this June for fall Avenue from 49 West 37th Street. The 16,000-square-foot factures handbags and small leather goods for Ralph selling. In 2004, Wathne plans to introduce Nautica belts space includes a showroom, design studio and corporate Lauren. Bonjour’s collection features reversible nylon and start distributing the handbags internationally, the offices. The building was designed by architect Stanford bags, weekenders, yoga bags and styles in nylon, denim, spokeswoman said.“We feel there is a huge opportunity White, whose work includes Madison Square Garden. velvet and corduroy with a ruffled edge. in women’s,” said Chu. The company celebrated its new home with a party dur- Many pieces feature the company’s signature orange Kenneth Jay Lane relaunched a collection of hand- ing market week attended by a number of buyers and press, color in topstitching or linings. Retail prices range from bags in a new licensing pact with Essential Accessories, as well as Denise Seegel and Andy Hilfiger, president and $30 to $65, with distribution aimed at department and a New York-based manufacturer. co-owner respectively of Sweetface Fashion Co., the hold- specialty stores. First-year projections are $8 million to The Italian-made line of 100 styles draws from his ing company for the JLo clothing line and accessories. $10 million, according to Carmine Porcelli, Bonjour’s fashion jewelry and heavily features jewel elements, — With contributions from Melanie Kletter
Network; Danskin president and ceo Carol Hochman; and Michael Cangemi, president and Summer in the City in March ceo at Aigner Group. NEW YORK — Spring break was in the air earlier “We want to make sure the accessories indus- You are invited this month when the Accessories Council teamed try feels welcome in our home,” said Claudio to the 6th annual up with Safilo Group to celebrate accessories mar- Gottardi, Safilo’s U.S. president and ceo. New York, New York ket week and kickoff QVC’s annual Cure by the The evening ended with a silent auction of 49 ® Shore charity event, set for May lots, which included handbags 17 in Malibu, Calif. from Gucci, Christian Dior and Whole Bead Show The party, at Safilo’s Fifth Yves Saint Laurent, a leather Now, two ballrooms over flowing with all beads and jewels to fulfill your dreams. Avenue showroom, took its ottoman by Fendi, a china and cues from beach life, with silverware set by Calvin Klein waiters in Hawaiian shirts and even a full-page ad in New York’s Hotel Pennsylvania • Penn Top & Sky Top ballrooms and slick sunglasses serving Seventeen magazine. A portion 18th Floor • 401 7th Avenue between 32nd and 33rd cool mohitas to Seventies of the proceeds will benefit the Across from Madison Square Garden disco tunes. National Multiple Sclerosis Some 250 guests turned QVC’s Lee Richardson, Sheila Block and Society. “We have a silent auc- March 21st – 23rd, 2003 Friday & Saturday 10 AM to 6 PM Sunday 12 noon to 5 PM • • out, from Lil’ Kim, Miss Claudio Gottardi. tion because it is a wonderful Wholesale • Retail • Open to the public • Admission is $5.00 for all buyers/attendees Universe Justine Pacek, Miss USA Shauntay way to raise money for a charity,” noted Sheila Wholesale buyers must bring a copy of their resale license Hinton and Heatherette designers Richie Rich Block, executive director of the Accessories For a list of merchants or to sign up for a workshop go to www.wholebead.com and Trevor Rains to such industry veterans as Council. “It’s also a guiltless pleasure — almost.” Abe Chehebar, chairman and ceo of Accessory — Marc Karimzadeh QVC PHOTOQVC BY STEVEAQUINOJOHN IANNACCONE, THOMAS BY PHOTOS HANDBAG EICHNER; AND KYLE ERICKSEN 11 Innerwear Report MONDAY,WWD, 2003 17, MARCH
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