THE REAL FASHION NEWS: DRESSING THE OSCAR NOMINEES/21 WWDWomen’s Wear Daily • The Retailers’WEDNESDAY Daily Newspaper • February 12, 2003 Vol. 185, No. 30 $2.00 Sportswear Captain Courrèges-ous NEW YORK — Marc Jacobs made an unexpected move on Monday night, creating a fall collection centered around Sixties looks of the Courrèges kind. His vision came complete with that era’s go-go boots, even Penelope Tree-style wigs, worn with abbreviated, geometric clothes of the sort that once defined our visions of the future. Here, his graphic micromini, with a turtleneck and bright hose. For more on the season, see pages 8 to 13. Burlington’s Bonanza: $579M Buffett Offer Ignites Bidding Battle By Vicki M. Young NEW YORK — Suddenly everybody loves Burlington Industries — including the Sage of Omaha. The U.S. textile industry might be Debate Rages Over Bush Plan To Eliminate Textile Tariffs. Page 4. a shadow of its former self with fabric producers terrified of a flood of imports from China and deflation now a fact of life. But Berkshire Hathaway chief executive Warren Buffett is nothing if not counter- cyclical in his investment strategies. See Buffett, Page18 PHOTO BY PHOTO GIOVANNI BY GIANNONI T H E S E C T I O N I S thesection B E E N P L A C E D WITHIN A&G ACCESSOIRE AMERICAN COLORS BY HENRY LEHR BLOCK 60 BYRON LARS-BEAUTY MARK CASSIN ESPACE/STYLED BY ROBERT CLERGERIE STUDIO EVA FORTUNE EVISU FRACTAL HAN FENG HUMMEL IRENE VAN RYB JOHN SMEDLEY KATE CLARKSON KATHLEEN MADDEN LE PHARE DE LA BALEINE M+J SAVITT MARITHÉ & FRANÇOIS GIRBAUD MICHELLE MASON PEPLUM BY YOSHIKI HISHINUMA POLES PRINGLE SCOTLAND RED HOT SABATO RUSSO SONIA RYKIEL TED BAKER TEHEN TREE TWIN SET pier94Y&KEI S A M E R CHANDISING OPPORTUNITY FOR RETAILERS AS THESE COLLECTIONS HAVE THE SAME VICINITY, JUST AS A RETAILER MIGHT HANG THEM TOGETHER IN THEIR SHOP. SUNDAY, MONDAY & TUESDAY FEBRUARY 23, 24 & 25, 2003 PIER 94 • 9AM-6PM DAILY 12TH AVE. AT 55TH STREET,NYC AN ENK INTERNATIONAL EVENT T:212-759-8055 F:212-758-3403 [email protected] PHOTO/BUSINESS ID FOR ADMISSION INTERNATIONALENK 4 WWDWEDNESDAY Contentious Debate on Textile Tariffs Sportswear By Kristi Ellis investment to the same level at mixed reviews among some of the the same time. other participating countries. GENERAL WASHINGTON — The concept of That could mean a tough fight, “Some countries will think Marc Jacobs, DKNY, Badgley Mischka, Bill Blass and Anne Klein led the tariff elimination always divides. especially since many of the poor- this is a very positive proposal 8 pack as the New York fall season continued. It was no different Tuesday er countries maintain high tariffs and other countries will have Burlington Industries said Tuesday that it has agreed to be acquired by Berkshire when the Bush administration as well as high non-tariff barriers. doubts, especially the Mercosur 1 Hathaway, but bankruptcy investor king Wilbur Ross says “not so fast.” unveiled its proposal to slash all Negotiations over agriculture [which includes Paraguay, Brazil, tariffs on apparel and textiles in and rules of origin for apparel Uruguay and Argentina] coun- While a difficult 2002 for VF Corp. culminated with strong fourth-quarter the Western Hemisphere within and textiles are also expected to tries,” he said. 4 results, the firm is bracing for big changes in the mass jeans landscape. five years. be difficult. Barbosa claimed Mercosur WEST: With Oscar nods in place, the race to the red carpet is on. Here are Reaction ranged from disap- Tuesday’s proposal also takes countries might feel some “dis- 21 some stylists’ suggestions for who should wear what to the big dance. pointment in one textile industry into account the size and levels crimination” in the special treat- WWD, WEDNESDAY, FEBRUARY 12, 2003 WWD, WEDNESDAY, camp to guarded optimism in im- of development of economies ment the U.S. proposed giving SUZY: The Met’s production of “Les Troyens”; The fashion show that’s gone to porter and retailing circles. and would give poorer countries poorer countries, particularly in 6 the dogs; Get ready for Kluge wine; A new princess for the Upper East Side. The Brazilian Ambassador to access to the U.S. market sooner the area of agricultural products. Obituary ..................................................................................................20 the U.S. also weighed in with a while allowing them to open He also noted the proposed Classified Advertisements ..................................................................23-27 mixed reaction. their markets more slowly to five-year phaseout of textiles and U.S. officials hope to use the U.S. exports. apparel might be too long for To e-mail reporters and editors at WWD, the address is new market access proposals to Brazil, which is co-chair with some countries hoping to gain [email protected], using the individual's name. jump-start the Free Trade Area the U.S. in the FTAA negotia- access to the U.S. market sooner SUBSCRIPTION RATES of the Americas pact, which tions, and many of the other than later. U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. aims to create a hemispheric Latin American countries are “In the case of textiles, the in- Please allow 6-8 weeks for service to start. Individual subscription information: (800) 289-0273; trade zone among 34 nations. expected to follow suit with tar- dustry in Brazil is prepared to outside U.S. (856) 786-2140; group subscription information (856) 786-0963. Postmaster: Send address changes to WWD, P.O. Box 10531, Riverton, N.J. 08076-0531. However, the proposals hinge iff reduction proposals of their have a much more daring propos- WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional on all 34 countries agreeing to own by the Saturday deadline. al than this one,” Barbosa said. Friday issue in February, April, May, June, August, September, October and December, and one Saturday edition in January, April, August and November, by Fairchild Publications, Inc. lower their tariffs on industrial Rubens Barbosa, the Brazilian Whether or not the U.S. pro- a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. and agricultural goods, govern- Ambassador to the U.S., predicted posal can withstand another two WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., a subsidiary of Advance Publications Inc. All rights reserved. ment procurement, services and the U.S. proposal would receive Continued on page 19 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 WOMEN’S WEAR DAILY. VF Strong in Quarter, With Eye on Levi’s For Web site access, log on to www.WWD.com By Evan Clark the most recent period, reversal program, now ostensibly conclud- of previous charges and a $2.3 ed. The domestic jeanswear busi- NEW YORK — Coming off strong million pretax gain on the sale of ness posted a 4 percent rise in In Brief fourth-quarter results, VF Corp. a closed facility, profits fattened fourth-quarter sales, but a 4 per- said Tuesday it won’t take Levi 50.7 percent to $84.4 million, or 76 cent drop for the year overall. Strauss & Co.’s entry to the mass cents a share, from $56 million, or In total, the U.S. market in KUNZ CASH: Gap Inc. will pay former chief financial officer Heidi market jeans business sitting 49 cents a year ago. Results for jeans came up about flat last year Kunz a severance payment consisting of $606,300 in bonus and a down. the fourth quarter of 2001 were with growth in juniors offset by year’s salary, according to a Form 8-K filed Tuesday with the While acknowledging that the also reclassified to present the softness in men’s and women’s, Securities and Exchange Commission. Kunz announced her resig- introduction of Levi’s Signature private label knitwear and the said chairman and chief execu- nation Jan. 18. Gap paid Kunz an annual base salary of $550,000. brand in Wal-Mart Stores for the Jantzen swimwear businesses as tive officer Mackey McDonald, on Gap also said Kunz must repay the interest-free $2 million loan back-to-school season would discontinued operations. a conference call. VF’s total she received in January 2000 from Gap by Feb. 1, 2005, or immedi- hurt its mass market sales, the The adjusted bottom line share of the jeans market rose ately if she sells the property pledged to secure the loan or breach- firm promised a series of initia- came in a penny ahead of Wall last year to 20.8 percent from 20.2 es any provision of her severance agreement. Kunz also agreed to tives to combat its rival’s pene- Street’s expectations and the percent a year earlier. immediately pay to Gap any proceeds, against the outstanding loan tration of the discount channel firm’s previous guidance of 75 The competitive landscape for balance, from the sale of any Gap stock options or stock.