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New York Who Are Creating Beautiful, Well-Executed Clothes

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New York Who Are Creating Beautiful, Well-Executed Clothes Page 1 Wednesday s FASHION SCOOPS: s EYE: Uptown and down at pre-fashion First day celebrity week parties, page 4. sightings: Lindsay For more, see Lohan, Hilary s WWD.com. Duff, Amanda INSPIRATIONS: Bynes and, yes, The ideas behind the Ashley Dupré, fall looks, pages 14-23. pages 12-13. Women’s Wear Daily • The Retailers’ Daily Newspaper • February 14, 2009 • $3.00 WwDWEEKEND Drama Class There’s a fresh crop of new designers in New York who are creating beautiful, well-executed clothes. One bright star is Prabal Gurung, whose glamorous fall collection, presented on Thursday evening, combined the fashion vernacular he had learned at Bill Blass with his own self-assured style. These were clothes for sophisticated women, created with considerable élan. Here, one example: a collections/fall ’09stunning sculpted gown. For more on the season, see NEW pages 6 to 10. YORK PHOTO BY GEORGE CHINSEE PHOTO BY 2 WWD, WEEKEND, FEBRUARY 14, 2009 WWD.COM A&F Shares Rise on Earnings, Capex Cuts By Matthew Lynch chief executive officer, EPS was $1.10, 10 cents above analysts’ consensus estimates as reported SHARES OF ABERCROMBIE & FITCH CO. by Yahoo Finance. WWDWEEKEND climbed more than 10 percent in Friday trading Sales in the three months fell 18.8 percent after the teen retailer led off the fourth-quar- to below $1 billion — $998 million — from $1.23 FASHION ter retail earnings season with a smaller-than- billion in the comparable 2007 period and were 6 Halston, Jason Wu, Yigal Azrouël expected decline in profits and sharp cuts in down 25 percent on a same-store basis with all and Duckie Brown were among the capital expenditures. divisions — A&F, Abercrombie, Hollister and headliners as New York’s runway The New Albany, Ohio-based specialty retail- Ruehl — down at least 23 percent. shows kicked into gear. er will lower capex to between $165 million and For the year, Abercrombie recorded a 42.8 $175 this year, between $120 million and $125 percent slide in profit to $272.3 million, or $3.05 14 THINK TANK: Designers take fall million for new or refurbished stores and the re- a share, from $475.7 million, or $5.20 a share, a inspiration from Proust to architecture mainder for technology, distribution and head- year ago. Sales in 2008 fell 5.6 percent to $3.54 to Francine du Plessix Gray and quarters projects, less than half the $370 million billion from $3.75 billion in fiscal 2007. anything in between. spent in the just-ended fiscal year. On a conference call with investors, Jeffries said he believed the quarter would “go GENERAL down in history as one of the biggest retail 2 Abercrombie & Fitch led off the fourth- nightmares.” He said the volatile economy quarter retail earnings season with a led to malls dominated by promotions and smaller-than-expected profit decline. consumers who were reluctant to spend, Fortunoff laid off the bulk of its Long especially on premium brands. 2 “In this context, particularly given our Island headquarters staff this week, position as an aspirational brand, we are putting the 87-year-old chain squarely satisfied with our results for the quarter,” on the path towards liquidation. Jeffries said. He added the company used 24 SHOW CALENDAR: A guide to runway markdowns to clear seasonal inventory, shows and presentations during New slowed U.S. expansion plans and cut back York Fashion Week. on expenses to better its cash position. Jeffries spoke repeatedly of protecting EYE the company’s brands in the weak retail A slew of events, including fetes, Gwyneth s environment. He said the firm will lower 4 auctions and intellectual pursuits, initial price points at its Abercrombie Paltrow in Proenza kept the fashion flock running around and Hollister stores in 2009, but that town in anticipation of the shows. Abercrombie & Fitch prices will largely Schouler. hold. Though he conceded markdowns are a part of the business, he said the company TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS will not be promotional. [email protected], USING THE INDIVIDUAL’s NAME. “Because, very candidly, most of the A&F posted a 68.4 percent drop in net income to $68.4 million. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 mall looks as if it’s in catastrophe mode,” FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. While its plans for U.S. expansion include Jeffries said. “We do not and will not. And that’s VOLUME 197, NO. 33. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in April, June and only 10 new stores, versus 90 in 2008, it may an important statement regardless of what we August, three additional issues in March and September, and four additional issues in February) by Fairchild Fashion open that many in Europe for its Hollister brand say here today.” Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY alone. Also in the works are Abercrombie & Retail analyst Chandi Neubauer of Majestic 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Fitch and Abercrombie flagships in Milan and Research said that though Jeffries might not Resources. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail an A&F flagship in Tokyo. characterize it as promotional because it wasn’t Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: “People were surprised pleasantly that capex advertised, the sale environment at Abercrombie return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR is being cut by 60 percent and that inventories & Fitch stores was aggressive and that the com- SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box were in a better position than we thought,” said pany benefited from it. 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new J.P. Morgan retail analyst Brian Tunick, who “The sales have really been driving traffic. and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 said reined-in expenses and a decision to sus- Managers said they can’t move anything at full Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests pend guidance might have also contributed to price,” Neubauer said. to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, the stock’s gains. Despite the declines in profit and sales, the visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or For the quarter ended Jan. 31, the retailer company’s cash position and long-term strategy information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S posted a 68.4 percent drop in net income to attracted investors to Abercrombie stock Friday, WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, $68.4 million, or 78 cents a diluted share, from analysts said, sending it up $2.08, or 10.1 per- UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, $216.8 million, or $2.40 a share, a year ago. cent, to close at $22.78, two-thirds higher than AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY Excluding a 21-cent impairment charge and an its 52-week low of $13.66, reached on Nov. 21, but REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS 11-cent tax charge related to the new employ- only 27.8 percent of its 52-week high of $82.06, SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. ment contract of Mike Jeffries, chairman and hit last Feb. 27. DAILY Very candidly, most Fortunoff Lays Off L.I. Headquarters Staff QUote of“ the mall looks as if By David Moin in March 2008. Last year, the only other bidders for the chain were liquidators. it’s in catastrophe mode. We do not FORTunOFF LAID OFF THE BULK OF Further bringing down the business recently ITS headquarters staff in Uniondale, N.Y., on were costs connected with the expansion of the and will not. Thursday and Friday, putting the 87-year-old firm’s jewelry line into Lord & Taylor, which is ” jewelry and housewares chain squarely on the also owned by NRDC. The strategy was in prog- — Abercrombie & Fitch chairman and chief executive path toward liquidation. ress but halted midstream as it became appar- Mike Jeffries on his refusal to engage in price promotions.
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