The Inside: To Pg. 16 CONDE NAST’S NEW BUSINESS/3 FASHION LOB/14 pB WWD -T -S Accessories WWDWomen’s Wear Daily • The Retailers’THURSDAY Daily Newspaper • August 25, 2005• $2.00 List Sportswear Strike a Pose NEW YORK — The urban market is a fountain of streetwise style this spring. Designers are showing an array of edgy separates perfect for breaking it down in the park. Here, G Unit’s acrylic, spandex and Lurex shorts and acrylic and wool sweater with Younique’s cropped denim vest, R.J. Graziano bangles, JLo earrings, a Kangol fedora and Steve Madden boots. For more, see pages 6 and 7. Settling Up at Saks Inc.: Retailer to Repay $48M To Overcharged Vendors By David Moin LED BY DAVID YASSKY DAVID LED BY NEW YORK — Saks Inc., completing an internal investigation, said Wednesday that it will reimburse vendors for more than $48 million in improperly collected Y SONJA/FRANK ARENDS; STY Y SONJA/FRANK markdown allowances from 1996 to 2003. The company, which made the disclosure after the stock market closed, said that it also expected to restate financial results for 1999 through 2004 because Saks improperly timed the AN SERAFINO/DOP DOP; MAKEUP B AN SERAFINO/DOP recording of the overcharges. The conclusion of the inquiry by the firm’s audit committee and board and the restating of financials might help expedite ORK MODELS; HAIR BY KRIST ORK MODELS; HAIR BY See Saks, Page17 PHOTO BY DAVID TURNER; MODEL: RENEE DORSKI/NEW Y DAVID PHOTO BY WWD.COM WWDTHURSDAY Sportswear ™ A weekly update on consumer attitudes and behavior based on ongoing research from Cotton Incorporated FALL’S MVP Denim Is a Versatile BTS Player For all the moods and personalities a girl comfortable wearing because of its versatility in might want to try on this back-to-school season, dressing-up and dressing-down.” there’s a look: boho chic, casual prep, casual surf, The Monitor reveals that 95% of girls would girly romantic. And for every look, something wear a pair of nice-looking denim jeans to school. denim can go with it. Up Against The Wall offers higher-end product, There’s the all-important denim and sees premium denim jeans, though this season a high appealing to the college-age BTS school or college-bound girl might consumer. “With premium want them either deconstructed or denim comes the feeling that you embellished, or both. Or neither. have something special,” asserts There’s a return of the denim Kim Stern, buyer. jacket, and denim skirts, whether The Monitor finds that 48% of short or long. females aged 16 to 24 say they Anne Brouwer, senior partner have a need to buy back-to-school Serena Williams and Maria Sharapova bring their styles to the U.S. Open, with McMillan|Doolittle, a clothes. The average girl expects starting Monday. Page 14. Chicago-based retail consulting to spend $204.11. firm, says she expects denim to With money in hand, this fall’s FASHION remain strong for BTS and school girl will have a lot of styles For the girl who loves to mix it up, designers are offering looks with a touch beyond. Niche brands, she says, from which to choose. JC Penney’s 6 of attitude, from slouchy denim pants to bright track jackets. will continue to influence the "[Denim] is a staple with all the key Lyons points to his store’s offerings: market, although the premium looks of the season.” the preppy look with brightly looks found among niche denim colored polos, cardigan sets and GENERAL — Tim Lyons, Saks Inc. owes vendors more than $48 million, stemming from the makers are now filtering down to JC Penney rugby shirts “straight out of the 1 improper collection of markdown allowances. more accessible prices. ‘80s;” a bohemian “haute hippie” “While premium denim will continue to sell, it is look that’s “all about eclectic layering with embellished Less than a month after ending its fiscal year with a nearly 50 percent pop still a small segment of the denim business,” Brouwer tops, shrugs, tunics and shrunken jackets, along with 3 in net earnings, Coach Inc. upped its first-quarter earnings projection. says. “The looks, however, are filtering down to moderate deconstructed jeans and full, tiered skirts.” The Council of Fashion Designers of America welcomed its newest price points. While this is a new concept, the trend Lyons points out that the day-to-day look for 5 members with a party at Vera Wang’s place Tuesday night. to freshen denim and offer distinctive cuts, finishes most teens is still “casual cool”: t-shirts, jeans and DENIM: In the aggressive market for pricy denim, retailers are taking over and logos will be strong across the board.” denim skirts. 10 the sketchpad and creating their own jeans brands. Cotton Incorporated’s Lifestyle Monitor™, found “Track jackets are another key layering piece. Calvin Klein was a boon to Phillips-Van Heusen’s second-quarter bottom that when shopping for a new pair of jeans, 58% of Attitude T-shirts with retro logos and smart-aleck 12 line, posting revenues of $39 million, a 13 percent same-period gain. young women ages 16-24 concentrate on the $25 to slogans remain a staple. And if you don’t have a Citing lusty demand for high-end watches, Swatch Group reported a 21.4 $50 price range, 24% shopped for jeans under $25, Napoleon Dynamite T-shirt yet, better hurry.” 12 percent jump in first-half net income to $222.1 million. 13% stayed in the $51 to $70 range, and 3% looked Gap’s Archambault says the junior look is more for jeans more than $70. romantic this season. ACTIVE: While the tennis is bound to produce the usual U.S. Open drama, what the athletes are wearing also will be on center court. At JC Penney, denim “just keeps on going and is “For us, it’s not boho, it’s more classically feminine,” 14 still in a growth mode,” attests Tim Lyons, she explains. “We have some preppie, but not as big spokesperson. “It’s a staple with all the key looks of a statement as it’s been. For tops, it’s all about the EYE the season. This year’s updates include deconstructed, cable knit cardigans in jewel or earth tones. College- Dishing with Candida Lycett Green, a top British gardening writer who just patchwork and embroidered age girls can just throw them on 4 published her first novel…Painting a new picture of Matisse. When shopping for a new pair of jeans, details, along with ‘80s-style which of the following price ranges do you with jeans and it looks like they retro pocket stitching. The tend to concentrate on? Would you say… tried, but not too hard. We also combination of details is what have the jean jacket, which is 16 to 24-year-old Females Classified Advertisements ..................................................................18-19 allows teens to create their such a classic. And we have a To e-mail reporters and editors at WWD, the address is Less than $25 24% individual style while still fitting velvet blazer with puffed sleeves [email protected], using the individual’s name. in and looking cool.” $25 to $50 58% and darts at the chest— it’s $51 to $70 13% WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 Cotton Incorporated’s Jessica almost a Victorian silhouette so FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Greater than $70 3% Paruch, trend specialist, agrees. it’s more romantic.” VOLUME 190, NO. 42. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional Average $35.82 issue in June, July and November, two additional issues in April, May, August and December, and three additional issues in “Individual expression is still Donnellan says other hot February, March, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL important within this age group. Customization trends at Up Against The Wall include skirts, which OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill through ribbon trims, sequins, patchwork and come tiered, embellished, and colorful with western Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior appliqués are really hot for fall. Any addition for or Pan Pacific influences, and message tees, Lacoste Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice-President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. aesthetic appeal, like grommets or geometric hardware, shirts, fitted track jackets and tanks. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. gives the wearer an edge that stands out.” Old Navy is pleased with denim’s performance, Canada post return undeliverable Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS The trend can be found at Up Against The Wall, says Andrea Lui, spokesperson. Other trends include CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North layering and “bright colors all around, from wovens Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd .