s EYE: Muses, models, designers and more from the Costume FASHION SCOOP: First Institute gala, pages 4 and 5. Lady Michelle Obama makes the New York rounds, page 3. FASHION: Stella McCartney and Simon Doonan chat design ats Barneys New York, page 3. Women’s Wear Daily • The Retailers’ Daily Newspaper • May 6, 2009 • $3.00 WwDWEdNESdAYSportswear Dark Shadows In Goth we trust — that’s the mantra of some adventurous designers who are channeling glamour’s dark side for fall. Some variations, such as the furry-armed look here, take the primal beast angle. But Goth is more than a trend. It’s a richly nuanced subculture, with all sorts of quirky offshoots, including the Gothic Lolita movement coming West from Japan. For more on Gothic fashion, see pages 6 to 9. Target’s Hipper Tie-up: Anna Sui Set to Design Line for the Discounter By Sharon Edelson Target Corp. is hoping a dash of Anna Sui’s downtown New York style will lure thrifty consumers. As the discount retailer pushes to bring designer names to the masses, Sui will be the second participant in Target’s Designer Collaborations series. Bowing on Sept. 13 on target.com and in about 250 select stores across the U.S., Anna Sui for Target will be available through Miss Sixty’s wool Oct. 17. and acrylic faux fur blazer and The Designer Collaborations program belt, Fifth Avenue features more established talents — Shoe Repair’s Alexander McQueen was the inaugural cotton blouse and Witches’ polyester designer — than the up-and-comers of lace leggings. Target’s Go International. Kris Van Assche The new program also has an unusual necklaces. See Target, Page11 PHOTO BY TALAYA CENTENO; MODEL: EUPHRASIE/NEW YORK MODELS; HAIR BY MASA HONDA USING BUMBLE AND BUMBLE; MAKEUP BY FABIOLA USING MAKEUP FOREVER AT THE WALL GROUP; STYLED BY KIM FRIDAY GROUP; STYLED BY THE WALL USING MAKEUP FOREVER AT FABIOLA MASA HONDA USING BUMBLE AND BUMBLE; MAKEUP BY MODELS; HAIR BY YORK CENTENO; MODEL: EUPHRASIE/NEW TALAYA PHOTO BY 2 WWD, WEDNESDAY, MAY 6, 2009 WWD.COM Adidas Profit Tumbles 97% By Ellen Groves given a contrasting picture across regions. In Russia, for example, 90 percent of the group’s WWDWEDNESDSportswearAY PARIS — Hit by discounting, higher sourcing pric- business is generated through its own retail, es, currency effects and restructuring costs, the whereas Adidas stores represent just a fraction FASHION Adidas AG saw net profits fall 97 percent in the of sales in Germany. 6 There was no shortage of dark glamour on the fall first quarter to 5 million euros, or $6.5 million at For the three months ended March 31, the firm’s collections and the Goth aesthetic is resonating at average exchange rates. sales declined 6 percent on a currency-neutral all price points. “I know that our results for the first quarter may basis, or 2 percent in euros, to 2.58 billion, or $3.37 not appear satisfactory,” Adidas chairman and billion. Adidas sales declined 6 percent, Reebok 4 GENERAL chief executive officer Herbert Hainer said dur- percent and TaylorMade-Adidas Golf 6 percent. 1 As Target pushes to bring designer names to the ing a conference call Tuesday. “But I also think you In North America, sales slid 17 percent to 538 masses, Anna Sui will be the second participant can see that we are not resting on our laurels and million euros, or $703.7 million, impacted by a in the retailer’s Designer Collaborations series. just waiting for the crisis to end. We are attacking it 25 percent drop at the Adidas brand. Faced with head-on, working on many initiatives to strengthen an aggressive discounting environment, Hainer 3 De Grisogono, the Swiss fine watch and jewelry our organization for long-term success.” said Adidas products were removed from a num- firm known for its black diamonds, has sold a 40 Following 500 layoffs, a hiring freeze imple- ber of retailers, which may have led to a loss in percent stake to an investment group. mented since last year, plus the nonreplacement market share. “In the U.S., our profitability is President Obama named Inez Moore Tenenbaum of employees, via which the group will shed a total lower than all other regions around the world. 12 to head the Consumer Product Safety Commission of 1,000 jobs this year, Adidas announced further Therefore we don’t want to get into price com- and proposed more funding for the agency. measures designed to save 100 million euros, or petition in the U.S., because this would further $133.1 million, annually, starting from 2010. hurt our margin,” he explained. 13 WEST: After going bankrupt 18 months ago and Plans include removing one level of manage- Impacted by sales declines in China, where losing the rights to use his name, designer Louis ment, the regional office, thus closing its region- inventories remain high, together with recession- Verdad is launching a collection called Louver. al headquarters in Europe and Asia in a bid to hit Japan, sales across Asia declined 6 percent to Kenneth Cole Productions posted a first-quarter increase speed-to-market. 628 million euros, or $821.4 million. However, the 14 loss, a 16.2 percent decline in net sales and a Adidas also said it would establish a global retail group maintains its sales target of 1 billion euros, 20.4 percent drop in same-store sales. organization under a chief retail officer to review or $1.33 billion, for China in 2010. underperforming stores in the coming months. Sales in Europe, which were last year boosted 15 Liz Claiborne Inc. tapped Thomas Johannes Grote “We are becoming one of the largest retailers by the UEFA Euro 2008 soccer championships, as ceo of Mexx Worldwide and Tom Fitzgerald as in the world,” Hainer said. “We have looked in fell 5 percent to 1.18 billion, or $1.54 billion. In ceo of Lucky Brand Jeans. the last 12 months which retailers are really suc- Latin America, new subsidiaries for Reebok EYE cessful around the world. It’s no secret they are helped boost business 31 percent to 218 million, The models-as-muses theme was quite evident the verticals.…Wherever a consumer goes into or $285.1 million. s 4 a store — in Kuala Lumpur, San Francisco or Shares in Adidas closed down 11.2 percent on at the Costume Institute’s gala, which this year Hamburg — they will see the same brands, the the Frankfurt Bourse to 26.20 euros, or $34.88, raised $5.4 million. same message, the same values for our brands on Tuesday. Rihanna in and companies. This is why we are doing it.” Citing a high level of uncertainty, Adidas de- Dolce & Gabbana. The wholesale business will similarly be placed clined to forecast 2009 results. In terms of sales, the Classified Advertisements................................................................................................15 under the management of a chief sales officer. company confirmed it expects a low- to midsingle- Hainer said a new organization was needed digit decrease on a currency-neutral basis in 2009. TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’s NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 197, NO. 95. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in March, April, June Avon Income Declines 36.5% in Qtr. and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. 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