$'9(57,6(0(17 WTHURSDAY, APRIL 25, W2013 Q WOMEN’S WEAR DAILYD Q $3.00 *8(66B&RYHU:UDSBZLWKIODSB)5217LQGG 30 xGUESS_CoverWrap_with flap.indd 2 4/10/13 4:36 PM WWDBASEL WOOL WINNER Feature Presentation ERMENEGILDO ZEGNA UNVEILED A SPECIAL COLLECTION A LOOK AT THE TOP TRENDS IN WOMEN’S WATCHES IN AUSTRALIA TO MARK THE 50TH ANNIVERSARY OF ITS AND THE CHANGING DYNAMICS IN CHINA. PLUS SUPERFINE WOOL AWARDS. PAGE 3 MUCH MORE AS BASELWORLD KICKS OFF. SECTION II SPRING 2014 BRIDAL NEW YORK COLLECTIONS WWDTHURSDAY, APRIL 25, 2013 Q WOMEN’S WEAR DAILY Q $3.00 MORE THAN 100 KILLED Apparel Factory Collapse Latest Bangladesh Tragedy lapsed so quickly there had been By MAYU SAINI little time for people to reach safety. The fire department and YET AGAIN. other official agencies have been Another apparel factory di- working to find and rescue sur- saster in Bangladesh has stirred vivors from the building, which an outcry over safety codes and eyewitnesses have described as working conditions after more a “mess of cement and stone, all than 100 people are feared dead piled untidily together.” as Rana Plaza, an eight-story The Institute for Global Labour building in the town of Savar, a and Human Rights said at least suburb of the Bangladesh capital 105 garment workers were con- Dhaka, collapsed at around 9 a.m. firmed dead, and the death toll Wednesday. is expected to rise. An estimated The disaster was met by a new 1,000 workers have been injured, round of demands for reform of the organization said, and 600 had Bangladesh safety codes and work- been rescued. ing conditions, and renewed calls for The institute said there were examination of the failures of factory four garment factories in the eight- inspection programs in the region. story building — New Wave Style, The building housed several Ether Tex, Canton Tech Apparel garment factories where more and New Wave Bottoms. than 2,500 people worked, ac- “Bangladesh is tragically cording to officials from the Ban- known for its lack of proper build- gladesh Garment Manufacturers ing codes combined with out- and Exporters Association. The of-control graft,” said Charles number of people still buried in Kernaghan, director of the insti- Something New the debris was unclear at the end tute. “It is the workers who pay the of the day, a police official told ultimate price. What took place At his runway show on Monday, nearly every one of Oscar de la WWD. He said the building col- SEE PAGE 4 Renta’s princess brides was bedecked in layers of lovely white and ivory silk organza. But he ended on a different note, with an unexpected dose of girly pink. Here, his blushing bride in a tulle Jones Streamlining Operations wrap and gown with ivory silk organza flower appliqués and lace As reported, activist inves- embroidery. For more from the shows, see pages 6 and 7. By LISA LOCKWOOD tor Barington Capital Group has taken a little over 2 percent stake NEW YORK — The Jones Group in Jones and has been pushing for Inc. is streamlining operations to it to sell off some smaller brands improve the company’s profitability. and tighten up operations. Card Chief among them is the clos- said Wednesday’s actions had noth- ing of about 170 underperforming ing to do with Barington’s recom- stores, which will result in a reduc- mendations. “I’ve been working on tion of the domestic retail staff by this for months. I started on this in about 18 percent, or about 750 peo- December and laid the groundwork ple. In addition, the company plans for this. We confirmed we met with to trim several wholesale divisions them and listened to them, as we do and the supply chain, resulting in with all shareholders,” said Card. the elimination of about 2 percent Barington officials weren’t of the workforce, or 100 people. available for comment. “Given the impact it will have As Jones continues its turn- on our associates, our decision around efforts, both the domestic to streamline operations was dif- retail division and the wholesale ficult. However, we believe these sportswear division remain chal- actions will position the company lenged. In 2012 domestic retail gen- for maximum operating leverage erated $585 million in revenues, and improved profitability as our down from $631 million a year ago. businesses recover and grow,” said The domestic wholesale sportswear Wesley R. Card, chief executive of- division accounted for $782 million, ficer of Jones. Card said termina- down from $892 million a year ago. tion notifications began this month Card noted that the 170 store and will continue through the first closings include the 50 that were half of 2014. SEE PAGE 5 PHOTO BY JOHN AQUINO 2 WWD THURSDAY, APRIL 25, 2013 WWD.COM BEAUTY BEAT Bare Escentuals Weighs on Shiseido THE BRIEFING BOX the business. He said Shiseido He said Bare Escentuals will IN TODAY’S WWD By AMANDA KAISER had to limit the investments it was start to invest more in promo- making in Bare Escentuals to keep tional and marketing activities to TOKYO — Shiseido Co. Ltd.’s un- the business profitable and in line be more competitive with other A fall look from derperforming Bare Escentuals with its valuation so it’s time to cosmetics brands, although he the Plectrum by division will cause the Japanese rectify that situation. declined to give investment fig- Ben Sherman beauty giant to post its first full- “We are very bullish on Bare ures. He said the brand will also collection. For year loss in eight years but the Escentuals, Bare Minerals as a revisit its retail distribution of more, see American brand is still consid- brand. It’s a sizable brand for us 200 stores in the U.S. and close WWD.com ered a key part of the group’s and it has contributed over the some stores, but these won’t be a long-term growth strategy. last couple of years significantly significant number of locations. Shiseido warned Wednesday in terms of profit, in terms of turn- Fischer also said Bare Minerals that it will post a net loss of 14.7 over and in terms of cash,” Fischer will be rolling out more skin-care SHERMAN billion yen, or $177.87 million at said. “We have to face reality now products next year, which should BEN average exchange, for the year and we should not delay [the write- help grow the business. OF ending March 31 as it books an im- down] further for the sake of the “It’s a growing market, the pairment loss of 28.6 billion yen, brand and the future of the brand.” United States, and you know there COURTESY or $347.1 million, on the goodwill Fischer declined to give sales are only a few growing markets left associated with Bare Escentuals, a figures or projections for Bare and everybody rushes in. So that PHOTO company known for its powdered Escentuals but a Shiseido spokes- [competition] has increased and mineral-based foundation. In woman specified that the brand is we have to adjust for that,” he said. More than 100 people are feared dead as Rana Plaza, an January, when releasing its nine- posting double-digit sales growth. Shiseido has faced some sig- eight-story building in Savar, Bangladesh, collapsed without month numbers, Shiseido said it Bare Escentuals’ annual sales nificant challenges recently. Last warning at around 9 a.m. on Wednesday. PAGE 1 expected full-year net income to were north of $500 million when month, the company’s presi- fall 27.7 percent from a year ago to Shiseido bought the company in dent and chief executive officer 10.5 billion yen, or $127.05 million. 2010. Fischer was quick to point Hisayuki Suekawa resigned unex- The Jones Group Inc. is streamlining operations to improve Shiseido said that Bare out that Bare Escentuals has a pectedly, citing stress and a strain the company’s profitability. PAGE 1 Escentuals, which it acquired in higher profit ratio than many of on his health as the reasons behind 2010 for a hefty $1.7 billion, has the other brands in Shiseido’s his departure. Chairman Shinzo On Tuesday night, 800 people descended on Moore Park’s not been performing as well as portfolio and is “significantly” Maeda, who had retired from the Royal Hall of Industries in Sydney to fete the 50th edition of expected and the gap between higher than the group’s average. ceo role before Suekawa took on the Ermenegildo Zegna Superfine Wool Awards. PAGE 3 its sales budget and sales perfor- He specified that the business has the position, returned to manage mance has been widening over been generating three-digit mil- the company on a daily basis. Levi Strauss & Co. said Wednesday it has tapped former the past few months. lions of dollars worth of cash flow The company has been un- Carlsberg brewing company executive Roy Bagattini as its new Still, the group’s corporate ex- over the last few years. derperforming both in its native head for its Asia-Pacific operations. PAGE 3 ecutive officer Carsten Fischer “It’s a profitable business for Japan and abroad, particularly in stressed Shiseido believes in us, it’s a good cash generator and the key market of China. Global expansion, brand extensions and reaching out to male the business potential of Bare it’s something worth fueling,” According to the guidance consumers are among the top priorities for Pomellato following Escentuals. He characterized the he said, forecasting that Bare provided Wednesday, Shiseido the deal to sell a majority stake to Kering.