Tropical Punch
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DANCE PARTY THOU NATALIE PORTMAN AND SHALL REESE WITHERSPOON WERE AMONG THE GUESTS AT A COVET BENEFIT FOR L.A. DANCE RACHEL ZOE LAUNCHES MOBILE APP, COVET PROJECT IN BEL AIR. PAGE 10 FASHION. PAGE 12 DEAL IN THE MAKING Baker’s Hudson’s Bay Zeroes In on Saks By DAVID MOIN NEW YORK — Hudson’s Bay Co., led by Richard Baker, chairman and chief executive officer, has emerged as a serious contender to purchase Saks WWD Inc., which has been in play for about a month. Baker and his team have been busy working on a deal and have been utilizing Hudson’s Bay’s U.S. MONDAY, JUNE 24, 2013 Q WOMEN’S WEAR DAILY Q $3.00 headquarters at 15 West 39th Street, at the Lord & Taylor flagship, as a base to conduct due diligence and strike a deal, according to industry sources. However, sources said Saks might be considered ex- pensive at the current price of its stock, which closed on Friday at $13.39 with a market cap of $1.94 billion, Tropical since for the past decade it’s mostly languished in the $11 range. Others costs, like compensating departing Saks executives with change-of-control payments and paying bankers, would raise the price further. The next couple of weeks will be decisive, the Punch sources said. “Hudson’s Bay has never paid full price for any- thing,” said one source. “They are bargain hunters.” Fun in the sun? Not exactly. Still, there’s logic to a Hudson’s Bay-Saks hookup. For one, Baker has long been interested in purchas- Imagining an exotic getaway ing Saks and in past years has met with Saks manage- as something that can be ment to discuss the possibility. Secondly, Hudson’s Bay could open Saks Fifth “dark and menacing,” Miuccia Avenue stores and Saks Off-5th outlets in Canada. Prada produced a cinematic Hudson’s Bay would consider converting some of its stores to Saks, or in the U.S., Lord & Taylor could collection loaded with new take some Saks locations or vice versa. Saks owns fashion, including looser, some prime real estate, including the Fifth Avenue double-breasted suits; languid flagship, and in Canada, retailers, including Canadian Tire Corp. and Loblaw Companies Ltd. have been blousons, and a storm of spinning off real estate into real estate investment bold prints. The show was trusts. Hudson’s Bay has not been shy about the possi- bility of a REIT, as well. Baker paid off the debt from the standout of the first two the L&T and Hudson’s Bay acquisitions by selling the days of men’s fashion week leases of 188 Zeller stores to Target Corp. in Milan and encompassed Putting Saks and Hudson’s Bay together would SEE PAGE 12 many of the trends seen all over the runways. Here, her shirt printed with island palms, full-cut trousers and CFDA Stages Show novelty briefcase. For more on Milan, see In Chinese Capital pages 4 to 6. By KATHLEEN MCLAUGHLIN BEIJING — A celebration of contemporary American fashion cascaded across Beijing’s Ming Dynasty City Wall on Friday evening, bringing together a mix of three prominent but young U.S. brands in a unique SPRING 2014 show in the Chinese capital. The runway show, produced by the Council of Fashion Designers of America/Vogue Fashion Fund Initiative and MILAN underwritten by Hong Kong-born fashion industry mogul MEN’S Silas Chou, brought together the fall collections of three COLLECTIONS CFDA-award winning labels — Proenza Schouler, Rag & Bone and Marchesa — on one runway with a cast of exclusively Chinese models over a dramatic, only-in-Bei- jing backdrop. The unusual runway show displayed the labels’ diverse looks to several hundred of China’s taste- makers, industry insiders and journalists. This was the biggest event yet in CFDA/Vogue’s on- going Americans in China initiative, a program that began two years ago with small exchanges between Chinese and American designers. The China program, an outgrowth that developed on the heels of the success of the CFDA’s Americans in Paris exchange, is intended to foster creative col- laboration between designers and brands in China and the U.S., and potentially spark consumer interest in the massive Chinese market. CFDA chief executive officer Steven Kolb said the China exchange was also crafted to help emerging American designers and brands develop a deeper un- derstanding of the world’s fastest-growing luxury and SEE PAGE 3 2 WWD MONDAY, JUNE 24, 2013 Moncler Looks Again to IPO THE BRIEFING BOX distribution into a fashionable international label. IN TODAY’S WWD By LUISA ZARGANI Ruffini went on to add a luxury component with the launches of the Gamme Rouge and Gamme Bleu MILAN — Moncler’s second attempt at an initial collections, designed by Giambattista Valli and public offering is taking shape. Thom Browne, respectively. A well-placed industry source said the Italian According to Eurazeo’s 2012 annual report, the brand has chosen a pool of banks including Bank of investment firm owns 31.2 percent of the Moncler America Corp., Mediobanca, Banca Imi, J.P. Morgan Group. In addition to the Moncler brand, the group and UBS to manage the IPO. “This is what [chair- comprises the Sportswear division, which includes man and chief executive officer] Remo Ruffini has Henry Cotton’s, Marina Yachting, Coast Weber & always wanted to do. They’ve been ready for four Ahaus and the 18CRR81 Cerruti license. Sources years,” said the source. say only the Moncler brand is likely to list, and that Another source confirmed that Moncler “is just the group will spin off the Sportswear division. waiting for the right window.” Last year, the group reported earn- Moncler shelved its IPO in sum- ings before interest, taxes, deprecia- LOVELL mer 2011, but Ruffini has repeatedly tion and amortization of 170 million said a listing remains the company’s euros, or $217.6 million at average goal — an objective confirmed in exchange, on sales of 624 million The scene at the CFDA show in SHARRON March as parent company Eurazeo euros, or $799 million, up 22 percent Beijing. For more, see WWD.com. BY identified this as the most likely exit compared with the previous year. method either at the end of this year The Moncler brand alone posted PHOTO or in early 2014. sales of 489 million euros, or $626 Officials at Moncler and Eurazeo million, up 35 percent from 2011, Hudson’s Bay Co. has emerged as a serious contender were not available for comment at accounting for 78 percent of group to purchase Saks Inc., which has been in play for about a press time. sales. The sportswear division, de- month. PAGE 1 Ruffini sold a 48 percent stake in fined as “a nonstrategic group busi- the company to The Carlyle Group ness,” showed a 10 percent decline. Three prominent in 2008. In June 2011, Carlyle and At the end of 2012, the Moncler , young U.S. brands took part in a unique show in Beijing Friday, as a celebration of American fashion Ruffini sold 45 percent of the com- brand counted 83 boutiques and PAGE 1 pany to Paris-based investment firm 1,900 wholesale accounts globally. cascaded across the Ming Dynasty City Wall. Eurazeo, pulling the plug on plans The company invested in the expan- to list the brand on the Milan Stock sion of its retail network and the re- Supported by its new owner, investment firm NEO Exchange that summer. Ruffini said duction in the number of multibrand Capital, Valextra is laying out the next five to 10 years last month “a listing remains [the sales outlets. Direct retail gained with the end game being an initial public offering. PAGE 7 company’s] goal.” 82 percent to 251 million euros, or The ceo retained a 32 percent $321.3 million, and wholesale grew Search ship Sea Scout is expected to start looking for the stake in the company, while Carlyle 6 percent to 238 million euros, or small aircraft carrying Vittorio Missoni that disappeared in owns 17.8 percent. $304.6 million, respectively account- the waters off Los Roques on Jan. 4. PAGE 7 Moncler would be the first luxury ing for 51 and 49 percent of total group to go public after the success- sales, compared with 38 and 62 per- A who’s who of designers popped by for cocktails by the ful listings of Brunello Cucinelli cent in 2011. pool of Villa Necchi Campiglio to celebrate Jim Nelson’s SpA in April last year and Prada Italy accounted for 26 percent of 10-year tenure as GQ’s editor in chief. PAGE 7 SpA and Salvatore Ferragamo SpA GIANNONI Moncler sales; the rest of Europe for the year before. Despite Italy’s mar- 32 percent and America for 10 per- Upscale children’s wear brands set to unfurl their ket volatility, Moleskine launched A Moncler cent. Boutiques and Miami and Los GIOVANNI spring 2014 collections at Pitti Bimbo, Thursday to an IPO in April, although its look on the Angeles opened last year. BY Saturday, are stepping up their game. PAGE 8 shares have hit a few bumps since runway. Last year, Moncler expanded in then, compared with Cucinelli’s PHOTO Asia by taking direct control of its ac- and Ferragamo’s upward trajec- tivity in Hong Kong and China. The Kevin West’s blog, “Saving the Season,” formed the tories. Lapo Elkann’s Italia Independent Group brand bought two stores in Hong Kong, took over basis of his first book by the same title, out Tuesday from PAGE 10 SpA is ready to make its debut on the AIM Italia eight stores in China and opened four stores in the Knopf.