OSCARS GET WAR JITTERS/2 JAPAN’S LUXURY VIEW/12 WWDWomen’s Wear Daily • TheWEDNESDAY Retailers’ Daily Newspaper • March 12, 2003 Vol. 185, No. 51 $2.00 Sportswear The Suit Case PARIS — There’s an elegant mood sweeping through fashion, and Karl Lagerfeld caught it in his fall collection for Chanel. But elegance often comes with a twist these days, and the line was also au courant, this time with a bit of a Sixties and rock ’n’ roll spin. There were fab jackets, of course, shown with super-short skirts, sometimes with the addition of a little lace or fur. Here, one of the great-looking new Chanels that makes Karl’s case for suits. For more on the season, see pages 6 to 9. Retail’s Latest Worry: Rocketing Gas Prices Cost Shoppers Billions By David Moin NEW YORK — These days, when retailers say consumers are running out of gas, they mean it in more ways than one. With rising threats of domestic terrorism, the weak economy and the wicked winter, consumers have been beaten down. Now, soaring gas prices are fueling even more angst — and the result is that the economy is losing $1 billion in consumer expenditure for every penny increase in pump prices, according IANNONI G to estimates from Salomon Smith NNI A See Gas, Page13 IOV G Y B PHOTO 2 2003 WWDWEDNESDAY Sportswear 12, Beverly Hills Postpones GENERAL PARIS COLLECTIONS: Sonia Rykiel, Y-3, Cacharel and Martine Sitbon were MARCH , 6 among the highlights as the runway season drew to a close. Walk of Style Ceremony With war, terrorism and the weak economy weighing on consumers, 1 soaring gas prices are now taking more cash from them — and retailers. By Rose Apodaca Jones Carpet Diaries: Confessions of a WEST: The threat of war had its first Oscar-related impact Tuesday as the Glamour Boy.” WEDNESDAY Rodeo Drive Committee postponed its inaugural induction for the Walk of Style. LOS ANGELES — The threat of Those events will be much 2 war with Iraq had its first Oscar- smaller and much more low-key The suit came back for Ann Taylor Stores in the fourth quarter, and there were related impact Tuesday when than the induction ceremony, profits tucked into the pockets, as it posted net income of $16.1 million. WWD, 3 the Rodeo Drive Committee de- continued the spokeswoman. “It MAINSTREAM: Marisa Christina is leaving behind the conversational, cided to postpone its inaugural seemed inappropriate to have schoolteacher sweaters and going for a more sophisticated look come fall. induction gala for the Walk of such a large-scale festivity at 10 Style honoring Giorgio Armani. this time when it can stand on SUZY: Being prepared for a special Oscar delivery…going to Hell (and And the Walk of Style might its own at a later date.” 4 Heaven) with the Young Lions…Prince Charles’ royal pain. not be the only thing canceled. As Some 600 guests, including rumors of war grow, so does nerv- many of Armani’s celebrity Obituary ..................................................................................................19 ousness over whether America friends, local politicians and Classified Advertisements ..................................................................15-19 will want to watch Hollywood other VIPs, were expected to To e-mail reporters and editors at WWD, the address is stars on the red carpet if U.S. turn out for the induction, the [email protected], using the individual's name. troops are battling in Baghdad. first in what the Rodeo Drive SUBSCRIPTION RATES While Academy Award officials Committee hopes will be dozens U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. insist the Oscars will go on, there honoring style icons along its All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. are reports that contingency tony thoroughfare. Please allow 6-8 weeks for service to start. Individual subscription information: (800) 289-0273; outside U.S. (856) 786-2140; group subscription information (856) 786-0963. plans for possible cancellation The 200 block was set to be Postmaster: Send address changes to WWD, P.O. Box 10531, Riverton, N.J. 08076-0531. are being developed just in case. roadblocked for the sunset fes- WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional Although an Armani spokes- tivities, hosted by Mercedes- issue every month except July, and two additional issues in April and August, by Fairchild Publications, Inc. a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. man in Milan said the designer Benz USA and W magazine WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., at the moment plans to go ahead (owned by WWD’s parent compa- a subsidiary of Advance Publications Inc. All rights reserved. with his trip to Los Angeles next Giorgio Armani ny, Fairchild Publications) and 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 week to take part in a slew of so- the unveiling of artist Robert expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 cial events scheduled around case. “There are still two other Graham’s 14-foot “Torso” sculp- Periodicals postage paid at New York, NY and other offices. his visit and the Oscars, sources significant events happening that ture on the street median. 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 say it was the likelihood of his week,” noted the company’s West Graham’s sculpture also served Printed in the U.S.A. being a no-show at the March 19 Coast spokeswoman, referring to as the model for the ceremonial All signed articles published in the paper represent solely the individual opinion of the writer and not those of event due to the potential of war the dinner Vanity Fair editor trophy. The event, including the WOMEN’S WEAR DAILY. that prompted the event’s can- Graydon Carter is throwing in public viewing of the statue, is For Web site access, log on to www.WWD.com cellation. honor of director Martin Scorcese now indefinitely postponed. “Mr. Armani didn’t want to trav- and Armani Wednesday night at “In light of what’s going on in el at this time,” said a high-rank- Mr. Chow, as well as the Thursday the political arena right now, it's ing source here close to the event. evening party at Emporio Armani just not the time to celebrate In Brief Armani’s camp, however, was for People columnist Steven this beautiful statue Robert adamant Tuesday that is not the Cojocaru and his new book “Red Continued on page 14 ● ROLEX DEPARTURE: Martha Nype Webster has left Rolex Watch USA, sources told WWD. Company executives could not be reached for comment. Webster spent 19 years at W magazine, rising to vice president and corporate publisher for fine jewelry and watches before moving to Rolex as director of communica- tions in 2001, where she oversaw all advertising, marketing and public relations in the U.S. Webster, who is married to Roberto Coin’s U.S. president, Peter Webster, could not be reached for comment at press time. ● SPIEGEL’S DWINDLING OPTIONS: Distressed catalog mar- keter Spiegel Group said Tuesday it expects to file for Chapter 11 bankruptcy protection “in the near future,” unless it is able to quickly find alternative sources of financing. Spiegel made the acknowledgement in connection with its disclosure that, be- cause of a payout, or early amortization, an event triggered by its inability to meet certain minimum-performance criteria on sev- eral asset-backed notes, monthly excess cash flow will be divert- ed to repay principal to investors of certain of its securitized transactions that underlie its credit card business. As reported, Spiegel’s special-purpose bank subsidiary First Consumers National Bank on March 7 discontinued charging privileges on all of its MasterCard and Visa accounts. FCNB also has discon- tinued reimbursing Eddie Bauer, Spiegel Catalog and Newport News for charges made with the private label credit cards it is- sued to the Spiegel-related firms. ● WANT FREEDOM FRIES WITH THAT?: Anti-French grumblings among Capitol Hill conservatives continues. On Tuesday, Rep. Bob Ney (R., Ohio) ordered three House office building cafete- rias to change their menus to read “freedom fries” and “freedom toast” instead of french fries and french toast. Ney called his edict symbolic, “to show the strong displeasure of many on Capitol Hill with the actions of our so-called ally, France.” However, such pronouncements don’t appear to be gaining trac- tion. Bush administration officials continue to proclaim France its friend, despite the country’s opposition at the United Nations to a U.S.-led war with Iraq. WWDStock Market Index for March 11 Composite: 90.70 Broadline Stores: 90.76 Softline Stores: 86.96 -0.60 -0.79 -0.58 Vendors: 95.23 Textiles: 91.16 Index base of 100 is keyed to closing prices of Dec. 31, 2002. 0.38 0.78 3 WWD, Strong Margins Buoy Ann Taylor Profits WEDNESDAY By Jennifer Weitzman which represent roughly 60 per- more refined merchandise. come in 2001 of $29.1 million, or cent of sales during the quarter. The company said it was low- 67 cents. Excluding the effects of NEW YORK — The suit came In addition, Loft was successful ering first-quarter earnings the amortization of goodwill in , back for Ann Taylor Stores in the with the $10 off any sweater pro- guidance to between 39 and 41 2001, income would have been MARCH fourth quarter, and there were motion, which created multiple cents, from 45 to 47 cents, and $39.8 million, or 90 cents.