TROUBLES AT ESPRIT/5 KAMALI, SPIEGEL BACK TOGETHER/21 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • October 3, 2005 • $2.00 Accessories/Innerwear/Legwear Cactus Flower MILAN — There are many ways of interpreting the current less-is-more fashion message, and the one Donatella Versace chose for her spring Versace collection was particularly effective. She dropped overt dazzle and bright shades in favor of beautiful desert colors, including plenty of beige. But she didn’t give up drama — as this beauty in a cactus-patterned dress shows. For more on the season, see pages 6 to 13. Dresses to the Rescue: Save Otherwise Safe, Chaotic Milan Season By WWD Staff MILAN — It’s hard to be angry at pretty dresses. After a grueling, controversial and often-underwhelming Milan season, that key item cheered retailers, many of whom left the Italian fashion capital with a positive assessment about the feminine, if safe, direction for spring-summer. “It was a good, solid week with good commercial pieces,” said Robert Burke, senior vice president of fashion at Bergdorf Goodman. “I thought Milan was much more feminine and refined than it has been. We saw a lot of beautiful eveningwear.” See Dresses, Page11 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY 2 WWD, MONDAY, OCTOBER 3, 2005 WWD.COM Wal-Mart Shuffles Exec Pair WWDMONDAY By Katherine Bowers John seas operations.’’ Menzer Kurt Barnard, president of Accessories/Innerwear/Legwear BOSTON — Wal-Mart Stores Inc. Barnard’s Consulting Group, is flipping the roles of two of its said that, in trying executives top domestic and international in new roles, Scott is taking a FASHION executives as the world’s largest page from the playbook of Wal- Fashion is headed into quieter waters and for many designers that meant a retailer seeks to grow sales. Mart founder Sam Walton. 6 shift to desert tones, white or gray, although for some, brights still ruled. John B. Menzer, chief execu- “Lee Scott may be in the tive officer of Wal-Mart Inter- process of testing possible suc- GENERAL national, will run the much larg- cessors,” Barnard said. After an underwhelming Milan season, the dress emerged as a savior and er Wal-Mart U.S. business, which Walton’s successor, ceo lifted retailers’ spirits about the feminine, if safe, direction for spring. has 3,124 stores and $191.8 bil- David Glass, switched Scott 1 lion fiscal 2005 revenue. He also from logistics into merchandis- Wal-Mart Stores is flipping the roles of two of its top domestic and will oversee real estate, logis- ing at a key juncture in Scott’s 2 international executives as the world’s largest retailer seeks to grow sales. tics, information services, bene- career. Trouble seems to be brewing at Esprit, where three executives have left, key fits, global procurement, finan- Menzer was Wal-Mart’s chief 5 stores have dropped the brand and licensing agreements are on hold. cial services, store planning and financial officer before run- strategic planning. ning its international business. Michael T. Duke will be in Duke, who joined Wal-Mart EYE charge of 1.587 international in 2003 after a 23-year career Catching up with Erika Christensen, who costars in “Flight Plan” and begins stores that generated $56.3 bil- with Federated and May De- 4 filming “Gardener of Eden” next month in New York. lion, the company’s fastest-grow- partment Stores, has had ups ing sector and its main opportu- and downs leading the U.S. di- nity for significant expansion. vision. Stale merchandise and Classified Advertisements ..................................................................25-27 Menzer and Duke both will PHOTO BEHRING/LANDOV NATALIE BY problematic pricing led to dis- To e-mail reporters and editors at WWD, the address is be vice chairmen. [email protected], using the individual’s name. Wal-Mart, based in Benton- WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 ville, Ark., in August reported Lee Scott may be in the process FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. its smallest quarterly profit in- VOLUME 190, NO. 71. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one “ additional issue in June, July and November, two additional issues in April, May, August and December, and three additional crease in four years as higher of testing possible successors. issues in February, March, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. oil prices chilled consumer ” PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. spending. — Kurt Barnard, Barnard’s Consulting Group Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and C.O.O.; Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; David Orlin, Senior Vice The company also named President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice President_Chief Jim Walton to the board, re- organized, fast-growing and Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. placing his brother, John, who profitable business.” appointing Christmas sales last Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. died in a plane crash this year. Scott said Duke “has the year. This year, the division is Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: Wal-Mart president and ceo ability and the management facing stiff headwinds from 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 CHANGES, ADJUSTMENTS, OR BACK ISSUE H. Lee Scott said Menzer will confidence to delegate respon- record gas prices, an anti-Wal- INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; “continue to accelerate sibility to the best people in his Mart campaign organized by or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. 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MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE BOSTON — Saks Fifth Avenue’s Saks president and chief operat- The overhaul will add 10,000 ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. flagship here is getting a $25 ing officer, reached via cell square feet of selling space, million-plus makeover as the re- phone in Milan. “It is a very pro- boost service amenities and im- MONDAY: Paris Ready-to-Wear Collections (through tailer modernizes key stores. ductive store. It will be our most prove traffic flow. The store, Oct. 11). “Consumers vote for us in modern store as part of our evo- part of the Copley Place com- Boston,’’ said Andrew Jennings, lution, and a new look for Saks.” plex downtown, will stay open WEDNESDAY: Interstoff Asia, Hong Kong (through through construction, which is Friday). slated to be completed in Burlington Coat Factory reports first-quarter sales August. and earnings. “We are always looking at that ONE POINT. MANY RESOURCES. customer who hasn’t had the THURSDAY: Major U.S. retailers report same-store Saks type of customer service,” sales for September. Jennings said. “We are always Asia Pacific Leather Fair Fashion Access, Hong trying to evolve customers into Kong (through Saturday). clients, and then into friends and Tranoi Femme, Paris (through Sunday). Consultants to the brand ambassadors.” Workshop Paris and Le Showroom, Paris (through Jewelry & Watch Design and merchandise Oct. 10). Industry specifics for Boston will be dis- Oxford Industries reports first-quarter sales and closed in March, Jennings said.