ALAIN HIVELIN DIES WWDICSC MARATHON BALMAIN’S PREVIEW MAJORITY SESSION OWNER AND A LOOK AT THE CHALLENGES AND MILEY CYRUS AND KIM CHAIRMAN KARDASHIAN WERE DIES AT AGE 71 OPPORTUNITIES FOR RETAIL AMONG THE CROWD AFTER A BRIEF PARTYING ON AND ILLNESS. DEVELOPERS. SECTION II ON AT ART BASEL IN PAGE 9 MIAMI. PAGE 10 PROFITS DROP 27.6% XXXXXX Prada’s Bertelli Talks Xxx Xxx Xxx ‘Market Readjustment’ Xxx Xxx Xxx Xxx By LUISA ZARGANI By OVIDIS A NATQUE NET MILAN — Prada is the latest brand struggling to fig- MENDA VOLUPTA turepudit, quias nestis accus as ure out the New World Order. resti beriasi doluptatem. Nem aut aperunto est ut In releasing the luxury group’s nine-month results, perrori taquidem aut qui blatem ad eium fugiantur which saw profi ts dive 27.6 percent, Prada SpA chief modi cus vel iusam fugiamus, omnim volendus, sinus executive offi cer Patrizio Bertelli admitted that the eaquas dolorep tatatent qui que sandelendis quis aut MONDAY, DECEMBER 8, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY year 2014 “is proving to be a more challenging year voluptur? than expected,” adding that, “On top of the ongoing Nam essint aut ea duntinv elendiciam num exp- WWD labo ribusae niam quidebi ssimet autat. diffi cult international economic environment, the luxury goods market is undergoing a certain readjust- Antiur, nobit faceptat. ment, the extent of which is not yet entirely clear.” Idis molupti nonsequis doloren impelecae nusci Chief financial officer Donatello Galli echoed im solente molorep eribus des corpora tibus, odis et Bertelli’s comments in a conference call with ana- dunt dolorpo reiciatem dolo int adigend uciendus lysts, underscoring the changes in the luxury market, aperita consequam utatur, quiani conectiam ut as which is seeing “a different perception of products,” intionsequas et quaeriat qui aut unt omniendi blabo. complicated by geographic and socio-political issues. Tem voluptat quam cum et fugia il mo etus aut eicae “We are observing, and the changes are not entirely lam, offi ctoribus adistionsed que non re cone con clear. The identity of the market is more complex cumquasped et quis del mo dellupt ataerum faccae than in the past,” said Galli. repudae ne voluptat la cusapit periscilit quis eiur, aut Prada was the latest fi rm to admit to struggling et atur asitisimi, autem quo quia nis quid qui ut auta with the changing fashion landscape after Millard dolesequi corum qui debitatur, quiam nis mos volu- “Mickey” Drexler 3rd, J. Crew’s chairman and ceo, pis sequam faccus si im el il isimoditis volorporem told WWD, “Apparel spending is down across our in- imporro conse con ratquiasse vellum re et et optate dustry. It’s common knowledge that store traffi c has con consequuntio doluptiam eata digenis aut offi c to been down for the past couple of years. Customers inctur sam re re dolupta tessin con pe corio dolorum are shopping online more than ever, and the promo- aditias et el et mi, ius dolori bla eosam utem even- tional environment is like I have never seen before. dae offi cae nobistr umquos milliqui apiendam rere- Clearly, this is not business as usual. The world is hen dendandi doluptur maiorrovid eum es quid eturi changing, and customer behavior and expectations tem re, incipsa nisquiam quatenimet quiditatem im- are changing even faster.” porrovid ut quia di simporest et la dolorro blant eos On In his comments, Galli noted that a “fairly inter- dolupti atistia cus, aborpore landio to blautet as aut esting meeting of the [Prada] board” had been held offi cipsam earciaes excearum, qui te offi cilicit est aut on Friday, admitting the results were “below expecta- id mil min ea pore mil iumque pro vit offi cab il en- tions and not only for external reasons,” but that the dantotatum verovid mod et rat.Soloremquiam et pro group was “standing by its fundamentals.” que pelique plibus et, similiqui ius essi re arum et Bertelli said he was “confi dent in the medium-term od mo earum aliquat latur, offi c tem faciend itatend growth prospects of the market but also aware of its esequatur molene landit endam solor sene vitaqua ti- Track increasing level of complexity.” Against an “extremely asitaquunt faccuptur sum qui od untorum facitiis do- Michael Kors just can’t help lessita dolupta temporepe platect enistiam con conse- himself. His intention SEE PAGE 4 ditae. Itatum et aut ant enim acillor am eos esectas et was to riff on “clichéd explam repudae. Nequam, omniminum faceruptatas COLLECTIONS feminine things,” but he couldn’t stay away from Smartphones the Future, what he loves most — PRE-FALL glam, practical sportif. 2015 But Tablets Drive Sales Xxxxxx Xxxxxx For pre-fall he worked By OVIDIS A NATQUE NET in a touch of ath-leisure By RACHEL STRUGATZ MENDA VOLUPTA turepudit, quias nestis accus as with boldly graphic track pants A DIVIDE HAS OPENED UP in the fast-growing resti beriasi doluptatem. Nem aut aperunto est ut worn with a black sweater and sleeveless world of mobile commerce, leaving retailers to won- perrori taquidem aut qui blatem ad eium fugiantur melton peacoat. For more pre-fall lineups, der whether they should focus on smartphones that modi cus vel iusam fugiamus, omnim volendus, sinus get the traffic or tablets that get the sales. eaquas dolorep tatatent qui que sandelendis quis aut see pages 6 and 7. There are many more smartphones than tab- voluptur? lets, but shoppers who use tablets convert to buyers Nam essint aut ea duntinv elendiciam num exp- at a greater rate. Data from IBM Digital Analytics labo ribusae niam quidebi ssimet autat. Benchmark showed that mobile sales were up 27.2 Antiur, nobit faceptat. percent for the fi ve days from Thanksgiving to Cyber Idis molupti nonsequis doloren impelecae nusci Monday and that mobile made up more than 50 per- im solente molorep eribus des corpora tibus, odis et cent of total online traffi c. This is the fi rst time mobile dunt dolorpo reiciatem dolo int adigend uciendus outpaced desktop traffi c on a Cyber Monday. aperita consequam utatur, quiani conectiam ut as But conversion still lags. intionsequas et quaeriat qui aut unt omniendi blabo. Smartphones yielded just 9.1 percent of online sales, Tem voluptat quam cum et fugia il mo etus aut eicae even though they comprised about 29 percent of online lam, offi ctoribus adistionsed que non re cone con traffi c. The dynamic was different for tablets, which cumquasped et quis del mo dellupt ataerum faccae made up 12.9 percent of sales on 12.5 percent of traffi c. repudae ne voluptat la cusapit periscilit quis eiur, aut Although tablets are drawing buyers, experts urge et atur asitisimi, autem quo quia nis quid qui ut auta retailers to focus on the smaller screen and adopt a dolesequi corum qui debitatur, quiam nis mos volu- stance that allows their digital offering to perform on pis sequam faccus si im el il isimoditis volorporem a variety of formats. imporro conse con ratquiasse vellum re et et optate “It’s certainly true that tablets drive more sales, but con consequuntio doluptiam eata digenis aut offi c smartphone usage in customer journeys was much high- to inctur sam re re dolupta tessin con pe corio do- er,” said Todd Huseby, partner of A.T. Kearney’s digital- lorum aditias et el et mi, ius dolori bla eosam utem business forum. “As that smartphone number grows evendae offi cae nobistr umquos milliqui apiendam further with penetration and new habits, and as tablet rerehen dendandi doluptur maiorrovid eum es quid numbers decline, it will net-favor the smartphones.” eturi tem re, incipsa nisquiam quatenimet quiditatem He explained that even if tablets yield stronger imporrovid ut quia di simporest et la dolorro blan conversion percentages, there won’t ever be enough PHOTO BY GEORGE CHINSEE SEE PAGE 9 SEE PAGE XX PHOTO BY XXXXXXXXXXXX 2 WWD MONDAY, DECEMBER 8, 2014 WWD.COM Mexx, Delia’s Latest to Mexx, Delia’s Latest to File Ch. 11 THE BRIEFING BOX in Eastern Europe.” to spend, there’s competition By VICKI M. YOUNG The spokesman said “there from the so-called “fast fashion” IN TODAY’S WWD Show Their Distress was no choice but to liquidate chains, not to mention must-have COMPANIES USED to wait until the business worldwide.” The consumer electronic items. after Christmas to either file for private equity fi rm maintains a Last week, while Wall Street bankruptcy or go out of business, lien on the brand, “which it ex- darlings such as Abercrombie & Alexandra Richards at but this year, a few are so dis- pects to secure the ownership of Fitch, American Eagle Outfi tters Art Basel in Miami. For tressed they just can’t wait. in the bankruptcy process, and it and Aéropostale all posted third- more, see WWD.com. Last week saw two fi rms — has several options for maximiz- quarter results that have at least Mexx and Deb Shops — head into ing value which it is currently met lowered guidance, commen- bankruptcy proceedings, and one evaluating,” he said. tary from company executives on — Delia’s Inc. — said on Friday Mexx’s former chief executive conference calls to Wall Street that it would liquidate and fi le offi cer, Thomas Grote, resigned indicated that there’s still much for Chapter 11 bankruptcy court in May 2012, and the company work ahead in turning around protection. has been trying to effect a turn- their fortunes. Of the three fi rms, the name around over the last few years. Deb Shops, once a hot ju- that might have the best chance Also on Friday, troubled om- niors chain operating under the of seeing the light of day again is nichannel tween retailer Delia’s high-low pricing strategy, filed Dutch fashion fi rm Mexx.