NEW YORK INSPIRATIONS, FALL ’07 PREVIEW/6-13 Women’s Wear Daily • The Retailers’ Daily Newspaper • January 26, 2007 • $2.00 WWDFRIDAY A Ralph Lauren sketch for fall. Beauty Glam Slam Giorgio Armani provided a splendid way to end a strong Paris couture season with a star-studded, glitzy after party for 600. The looks on his Armani Privé runway had plenty of Hollywood razzle-dazzle, too, blending a big dose of Indian infl uence with assertive versions of his signature structure. Here, one of his glamorous numbers, detailed with a swath of jewels. For more on the shows, see pages 4, 5 and 19. How Swede It Is: H&M Profits Up 17%, New Formats on Horizon By Robert Murphy 2006, said Thursday that it would on London’s Regent Street. PARIS — Hennes & Mauritz is on a push into the home textile market The new brand will comprise roll — and it wants to keep it that via its H&M stores. Meanwhile, women’s and men’s collections. way. the company revealed the name H&M said about 10 stores The Swedish fast-fashion of its new, more expensive chain: were scheduled to bow during retailer, which reported a 17 Collection of Style, or COS. The the year in the U.K., Germany, percent increase in net profits in first COS store will open in March See H&M, Page 22 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY 2 WWD, FRIDAY, JANUARY 26, 2007 WWD.COM Rising Gucci Group Sales WWDFRIDAY Stand Out for PPR in Qtr. Beauty By Miles Socha euros, or $782.4 million, in the quarter. FASHION Palus trumpeted growing momentum at YSL; Giorgio Armani ended the couture season with a dazzling extravaganza, PARIS — Luxury leather goods powered PPR’s leather goods sales surged 74.2 percent in the 4 complete with a star-studded front row and mega after party. fourth-quarter performance, as Gucci Group sales fourth quarter at constant exchange for total increased 15.3 percent, to 1.04 billion euros, or $1.34 brand sales of 56 million euros, or $72.2 million From screen siren Monica Vitti to children’s heroine Madeline, designers billion. at average exchange. “The brand has regained a 6 have tapped into all sorts of inspiration for the New York fall shows. Yves Saint Laurent gained traction with such genuine competitive edge in the leather goods in- hot handbags as the Downtown, dustries,” he said. “[It] is indeed GENERAL contributing to a 26.3 percent gain on the upswing.” Strong holiday sales propelled H&M’s full-year profi t ahead 17 percent in the fourth quarter, while the Bottega Veneta sales in the as the chain said it was making a push into the home textile market. core Gucci brand’s momentum in- quarter surged 64.4 percent, to 80.9 1 creased in the three months ended million euros, or $72.2 million; rtw Luxury leather goods powered PPR’s fourth-quarter performance, with Dec. 31; sales were up 12.5 percent sales logged triple-digit growth. 2 Gucci Group sales up 15.3 percent to 1.04 billion euros, or $1.34 billion. and there were strong double-digit Other brands, including Balen- BEAUTY: Gabrielle Reece is making Cool Water a family affair, while gains across all product categories ciaga, Alexander McQueen and creating a splash with ads for its new scent, Cool Water Wave Woman. except timepieces. Stella McCartney, posted 32.9 per- 14 Still, the French conglomer- cent growth in the quarter, to 100.5 Giorgio Armani has designs on skin care and he’s employing fashion’s ate continues to be plagued with million euros, or $129.6 million. 15 favorite color — black — to make his mark on the segment. anemic sales at its retail division, Palus highlighted the “best year Wal-Mart Stores agreed to pay $33.5 million in back wages to 87,000 which slipped 0.5 percent at con- ever” for Sergio Rossi and said all stant exchange in the quarter to brands were “well in advance” to 22 workers who were undercompensated for overtime pay. 4.34 billion euros, or $5.59 billion. reach their break-even targets. Classifi ed Advertisements.............................................................23 PPR blamed adverse weather and Fourth-quarter sales at YSL sluggish spending in Italy and Beauté increased 1.2 percent, to To e-mail reporters and editors at WWD, the address is fi rstname. France for the poor performance. 194.2 million euros, or $250.4 mil- [email protected], using the individual’s name. Overall, group sales in the quar- lion, or 2.9 percent at constant ex- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ter gained 3.2 percent, to 5.37 bil- change. Palus said the new YSL ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 193, NO. 19. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one lion euros, or $6.93 billion, based men’s fragrance, L’Homme, “took off additional issue in January and November, two additional issues in March, May, June, August and December, and three additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance on average exchange. Currency really well,” reaching number four Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by conversions were made at average in France, and noted sales of Stella Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human exchange rates during the period. A look from McCartney fragrances confirmed Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail “Our performance this quarter the “high potential” of the brand. Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return Gucci’s undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: once again confi rms the favorable fall 2006 But “the U.S. remains a chal- SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA dynamics of PPR based on pres- lenging market for the company,” 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE collection. INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit tigious luxury brands and solid he added. www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production retail banners,” chief financial PPR’s retail activities — correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, offi cer Jean-François Palus told analysts during a which include Fnac book and record stores, the please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list conference call Thursday. Conforama furniture chain and Redcats cata- available to carefully screened companies that offer products and services that we believe would interest our readers. “In luxury, the market is continuing to grow, logues — faced a “challenging” climate in Europe, If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, though at a slightly slower pace.” marked by a “dismal” October, unseasonable OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, PPR highlighted strong growth in luxury weather and a “reasonable Christmas.” BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR across most geographic regions, including Fnac sales grew 1.1 percent, to 1.59 billion CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR Japan, where fourth-quarter sales gained euros, or $2.06 billion; Conforama eased up DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. 10.9 percent at constant exchange rates. 0.1 percent, to 944.8 million euros, or $1.22 However, owing to a weak yen, report- billion; CFAO lost 0.3 percent, to 557.4 ed sales lost 0.6 percent in Japan. million euros, or $718.8 million, and Gucci Group sales in North Redcats rose 1.1 percent, to 1.24 bil- America rose 17.8 percent, to lion euros, or $1.59 billion. Quote of the Week 216.3 million euros, or $275.4 On the plus side, PPR said it million, in the quarter. continued to become less depen- “All regions showed very dent on France, for sales and its “There’s only a handful of people who solid growth, especially in North e-commerce businesses were ro- America, where December was bust, gaining 23 percent in 2006. At potentially could affect meaningful outstanding, and even Japan, Redcats, 36.4 percent of home-shop- where the trading landscape is less ping revenues were online, according change at the Gap.’’ favorable for luxury,” said Palus.