LargestThe Fib Inside: Pg. 14 IMPORTERS SUE U.S./3 EUROPE GETS ACTIVE/13 WWD WWDWomen’s Wear Daily • The Retailers’THURSDAY Daily Newspaper • December 2, 2004 • $2.00 er CompaniesList Sportswear Start Your Engines PARIS — Motocross-inspired styles, including the classic snap-collar jacket and skinny jeans with patches, are hitting a fever pitch in France. Here, Diesel’s leather jacket and Levi’s denim jeans. For more on the trend, see pages 6 and 7. Neiman Marcus Magic: Net Profits Soar 14% On Luxury and Fashion By Meredith Derby URENT FOLCHER BY LA NEW YORK — The luxury machine that is Neiman Marcus Group Inc. continues to motor along. Helped by increased full-price selling and a continuation of stringent inventory , BOTH AT CALLISTE; STYLED , BOTH AT management, fiscal first-quarter earnings at Neiman’s rose 14 percent as revenues increased 10.9 percent. In the period ended Oct. 30, the Dallas- based company earned $64.1 million, or $1.30 a diluted share, including a $9.3 TRICE LAROCH AND MAKEUP BY JENNY TRICE LAROCH AND MAKEUP BY million loss on the sale of the company’s Chef’s Catalog net of taxes. Results in the latest quarter compared with a profit See Full-Price, Page8 ANNACONE/ELITE; HAIR BY PA ANNACONE/ELITE; HAIR BY PHOTO BY PATRICK KATZMAN; MODEL: REBECCA L KATZMAN; PATRICK PHOTO BY WWDTHURSDAY Sportswear GENERAL With better full-price selling and stringent inventory management, Neiman ™ 1 Marcus Group earnings rose 14 percent as sales gained 10.9 percent. USA-ITA filed suit against five government agencies seeking an injunction A weekly update on consumer attitudes and behavior based 3 against further review of threat-based China safeguard petitions. on ongoing research from Cotton Incorporated The U.S. economy is growing, but consumer spending remains uneven 3 across the country, the Federal Reserve’s Beige Book report revealed. FOLLOWING THE CURRENT EYE: Two startling new productions update the venerable classics on the cutting edge of Los Angeles’ contemporary arts scene…Tea on the Left Bank. Women increasingly return to styles they know and love 4 FASHION: With oil-splattered jeans and elbow pads galore, motocross chic “Keep your eyes out for a black sweater and a clothing purchases are replacements of the current 6 is revving up Europe’s denim and sportswear scene. denim skirt,” Samantha, a 30-year-old teacher from styles they own, 48% of women in this age group ACTIVE: Outdoor apparel brands in Europe, once selling only at the foot of New York, reminded her mother, Marianne, on a claimed to be buying new and different, a jump 13 its highest peaks, are taking their sporty message to the city streets. recent shopping trip. Marianne responded with a from 38% a decade ago. LVMH has ambitious plans for China over the next year, executives revealed request of her own. “Be sure to look for a white But there’s good news no matter what you’re 16 at the International Herald Tribune’s luxury conference in Hong Kong. blouse and navy pants.” Although these desired looking for today. Explains DeFranco from Cotton garments can already be found in Incorporated, “There is no right Classified Advertisements ..................................................................17-19 both mother and daughter’s or wrong at the moment. There To e-mail reporters and editors at WWD, the address is existing wardrobes, they are isn’t a definitive hemline, pant [email protected], using the individual’s name. always on the lookout for fresh silhouette or jacket length. There WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 updates of their most favored are influences from almost every FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 188, NO. 115. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional items. “We know what we like,” decade in fashion right now so issue in January, May, June and November; two additional issues in February, April, September, October and December; and three asserts Marianne. it’s easy to pick what you like additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; An increasing number of from what’s out there.” She adds, Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, women feel as Samantha and “Ten years ago, things were far Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- Marianne do. When the Cotton more trend-oriented, and I President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at think the data showing women additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration Incorporated Lifestyle Monitor™ No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. recently compiled a 10-year “It’s about cultivating a sense of style preferring what they know to POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. that is uniquely yours. Women know FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR comparison of consumer something new and different DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is behaviors, they found that there what items work for them and it’s reflects that. Today it’s all about required for change of address. Please give both new and old address as printed on most recent label. First copy of new reassuring to have those items in subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production was a significant increase in personal style.” correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, women who stated that their multiples in our wardrobes.” Transcending from trend to please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild typical new clothing purchases — Randi Lane, basic is certainly true in denim, magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully Catwalk Productions screened companies that offer products and services that we believe would interest our readers. If you do not want to receive were replacements of current observes Moore. “Denim is now 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 LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED items, edging out items that were considered new a true basic and not just about a trend. Women will MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND and different. Fifty percent of Generation X female even come back to the same brand for a good TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED consumers, aged 26 to 39 today, said that their update; it’s about finding what they like and sticking TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE typical purchases were replacements, which represents with it.” ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. a strong increase from the 40% of respondents who Moore’s assertions are supported by the Monitor’s made that same claim a decade ago. Baby Boomers, generational consumer comparisons; denim ownership aged 40 to 58 today, stayed consistent in seeking out was up among all age groups in 2004. Female familiar clothing items; 58% of female respondents respondents in Generation X own 8.12 pairs of In Brief in 2004 stated that they were replacing current denim jeans, Baby Boomers owned 6.89, and items, up from 55% 10 years ago. women in The Greatest Generation owned 5.14. “Women want to make good choices,” shares Linda This compares favorably to the 7.43, 6.62 and 4.83 ● J. CREW REFINANCES: J. Crew Group Inc. has entered into a DeFranco, women’s wear trend forecaster with owned by women respectively in 1995. commitment letter with Wachovia Bank National Association and Congress Financial Corp. to refinance a $180 million se- Cotton Incorporated. “As they grow more confident But in addition to denim, are there any other cured loan agreement among J. Crew Operating Corp. and cer- with their own style, they come to trust that above all.” items that continually make it on to women’s tain of its subsidiaries, according to a Wednesday filing with Agrees Wenlan Chai, who designs for Twinkle, shopping lists? “Women are always looking for the Securities and Exchange Commission. The refinanced fa- “Women have a Typical New Clothing Purchases black pants; they cility will have a five-year term and provide up to $170 million comfort level don’t want them of revolving loans and letters of credit to J. Crew Operating and with what they Generation X Baby Boomer The Greatest Generation to fade to gray or its subsidiaries on similar terms to those in the existing facili- 1995 2004 +/- 1995 2004 +/- 1995 2004 +/- ty.