EYE: More from s FASHION: Norma Kamali the party scene in s goes high-tech, page 5. Cannes, page 4. FINANCIAL: Retail shares climb, s s NEWS: Michelle including Dillard's and Saks, page 14. Obama’s Met debut, page 5. Women’sWomen’s Wear Wear Daily Daily • The• The Retailers’ Retailers’ Daily Daily Newspaper Newspaper • Tktktktk• May 19, tk, 2009 tktk • $3.00• $3.00 W Ready-to-Wear/TextileswDTUESDAY Peaches & Cream Giorgio Armani is feeling peachy keen as resort begins. For his Armani Collezioni lineup, the designer opts for sporty outerwear from great quilted nylon jackets to tissue-weight leathers — perfect toppers to transition into the season. Here, a leather jacket, rayon and elastane T-shirt and rayon, wool and elastane pants. For more, see WWD.Com. A Momentary Message: Luxury Brands Step Up Pop-Up Shop Openings By Miles Socha PARIS — While normally associated with hulking brand edifices on the world’s prime shopping avenues, Europe’s luxury players are suddenly enamored with more modest, temporary stores. Hermès, Louis Vuitton and Chanel are among major brands plotting such retail ventures in the coming months, characterizing them as a way to tap into a new customer base, create excitement — and capture extra sales in a tough economy. “Even if it has been done to address a problem, it can become an opportunity,” said Patrick Thomas, chief executive officer at Hermès International, which on Wednesday will open at 63 Main Street in East Hampton, N.Y., for a four-month stint. “It’s also a very See Temporary, Page12 PHOTO BY JOHN AQUINO PHOTO BY 2 WWD, TUESDAY, MAY 19, 2009 WWD.COM Allen, American Apparel Settle for $5M By Matthew Lynch cover the Allen settlement. The company did not respond to an inquiry on the matter. WWDTUESReady-to-Wear/TextilesDAY WOODY ALLEN ENDED MORE THAN A YEAR Following the close of the stock markets FASHION of legal sparring with American Apparel Inc. Monday, the company reported a first-quarter Meet the latest crop of new designers and their Monday when he agreed to a $5 million settle- loss that exceeded analysts’ estimates by 8 cents s 6 ment from the retailer on the morning their and reduced full-year guidance. eclectic pantheon of muses — Myrna Loy, dispute over unauthorized billboard advertise- The loss in the three months ended March 31 Mommie Dearest and Miss Marple — and looks. ments was to go to trial. was $9 million, or 13 cents a diluted share, ver- “It’s of course possible that by going through sus a profit of $1.1 million, or 2 cents a share, in GENERAL the trial a jury might have awarded me more 1 Europe’s luxury players, normally associated money but this is not how I make my living and with huge stores in key locations, are suddenly $5 million is enough to discourage American enamored with more modest, temporary stores. Apparel or anyone else from trying such a thing Norma Kamali has a new strategy that uses social again,” Allen said. 5 networking sites and other Web innovations to The filmmaker filed a $10 million violation enhance the brand experience. of privacy suit against the Los Angeles-based retailer in U.S. District Court in Manhattan in 10 RTW: Trying harder to please shoppers, retailers March 2008. During the prior year, the company are leaning more on their sales associates to ran billboards bearing his face in New York and ensure consumers leave happy. Los Angeles without his permission. The ad- TEXTILES: French fabric mills and apparel vertisements, which were up less than a week 11 before being taken down at Allen’s behest, de- subcontractors are being hit with shrinking orders, picted him dressed as an Orthodox rabbi in a lowered margins and depleted balance sheets. scene from his 1977 film “Annie Hall.” Hebrew EYE script on the signs, which also ran on the compa- Alex ny’s Web site, referred to Allen as the company’s & Eli 4 Forget the screenings, revelers at the Cannes Film spiritual leader. Festival had plenty of nocturnal activities at their Jury selection in the case was to have begun disposal this past weekend. Monday morning. In pretrial filings, Allen’s at- torneys said American Apparel did not seek Classified Advertisements................................................................................................15 their client’s permission and that he had a long TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS history of turning down endorsements. American [email protected], USING THE INDIVIDUAL’s NAME. Apparel’s lawyers had argued the ads made a so- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 cial statement and were protected speech, but FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 197, NO. 105. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with Judge Thomas Griesa threw out their motion one additional issue in January, May, October, November and December, two additional issues in March, April, June seeking dismissal on First Amendment grounds and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division last week. of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Chief executive officer Dov Charney took to RS/CORBIS Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage te the company’s blog Monday, where he wrote U paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. RE Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian more than 1,500 words to explain the billboards R/ E addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES Y and settlement. He said he thought the company A TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS had a good case but that its insurance carrier, TH CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA C which controlled the defense, wanted to settle. 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed ERI on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all He added Allen was one of his inspirations. BY O editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. “Naturally there is some relief of not having T For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online HO to go through a trial, but I also harbor a sense of P at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. remorse and sadness for not arguing an impor- Woody Allen in New York on Monday. 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 information, please tant issue regarding the First Amendment, par- advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT ticularly the ability of an individual or corpora- the year-ago quarter. Net sales grew 2.4 percent, RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, tion to invoke the likeness of a public figure in a to $114.3 million from $111.6 million. Analysts UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER satirical and social statement,” he wrote. surveyed by Yahoo expected a loss of 5 cents on MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY Charney has made American Apparel a go-to sales of $117.5 million. WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE brand for the hipster set in recent years using a Retail sales, which increased 16.5 percent ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. strategy of racy ads and bright basics, all of them to $78 million offset wholesale sales, which slid produced domestically in Los Angeles. He’s also 21.9 percent to $28.1 million. Same-store sales been the subject of several sexual harassment declined 7 percent and unfavorable currency DAILY A jury might have lawsuits in that time. shifts weakened the quarterly results, the Los In his post, the ceo drew a parallel between Angeles-based firm said. awarded“ me more money, those suits and Allen’s own public trials. In 1992, The retailer also said its operating expenses QUOTE the director was romantically linked to Soon-Yi for the quarter increased 20.8 percent to $69.3 but this is not how I make my living Previn, 22 years old at the time and the adopted million, or 60.6 percent of net sales, versus 51.4 daughter of his longtime girlfriend, Mia Farrow. percent of sales in last year’s quarter, due to Allen and Previn married in 1997. higher payroll, rent and occupancy expense and and $5 million is enough to discourage Lawyers for American Apparel had ques- depreciation related to the greater number of tioned whether Allen’s endorsement was stores in operation, which included the acceler- American Apparel or anyone else from worth the $10 million he sought in light of ated store rollout in the second half of 2008.