APPAREL PRICES UP/2 INNERWEAR’S SHAKEUP/22 THETHE WWD BUSINESS REVIEW THE RETAILERS’ DAILY NEWSPAPER MAY 17, 2004 Women’s Wear Daily • The Retailers’ Daily Newspaper • May 17, 2004 • $2.00 STAYING AFLOAT Bailing or Smooth Sailing? Fashion Retail on an Uncertain Voyage. From the impact of a jobless recovery to curbed consumer spending in a post-refinancing boom era, retail faces daunting seas. {But the tide could change as the industry is buoyed by a consumer demographic that can’t seem to get enough of luxury goods. } Nouveau Riche II: ‘Masstige’ Cash Machine: Refinancing Over? Factors on China: Trade 2005 ▲ The WWD Business Review. WWDMONDAY Pages 9-20. Accessories/Innerwear/Legwear Into the Woods NEW YORK — Fur is everywhere for fall. From hats and bags to an old favorite, the muff, accessories are turning up in mink, rabbit and raccoon. Here, Patricia Underwood’s mink hat, Cathy Hardwick’s fox-trimmed mink vest and Tocca sweater. For more, see pages 6 and 7. A Hip-Hop Flip-Flop: Eve Switches Licensees, Signs With Marc Ecko By Julee Greenberg ED BY ROXANNE ROBINSON-ESCRIOUT ED BY NEW YORK — Eve’s Fetish has a new partner — and it’s none other than hip- hop entrepreneur Marc Ecko. The rapper-turned-designer has signed a licensing deal with the $350 million Marc Ecko Enterprises after OS, BOTH AT WARREN TRICOMI; STYL WARREN OS, BOTH AT becoming unhappy with her previous licensee, Innovo Group Inc. Innovo had launched the Fetish line at retail last fall. Ironically, the deal with Eve comes only two weeks after Ecko Unlimited Y ROANNA, HAIR BY DENNIS GOTOUL Y ROANNA, HAIR BY was said to be near an agreement with Beyoncé. Those talks broke down over financial terms of a license, sources close See Change, Page5 TON PLATT/SUPREME; MAKEUP B TON PLATT/SUPREME; PHOTO BY KYLE ERICKSEN; MODEL: REMING KYLE PHOTO BY 2 WWD, MONDAY, MAY 17, 2004 WWDMONDAY Accessories/Innerwear/Legwear Women’s Apparel Prices on the Rise GENERAL Eve’s Fetish has changed licensees, switching from the Los Angeles-based By Joanna Ramey of 0.1 percent, following double- digit increases in each of the 1 Innovo Group in favor of New York’s Ecko Unlimited. WASHINGTON — Retail prices preceding three months. Retail prices for women’s apparel posted a seasonally adjusted 0.6 percent for women’s apparel posted a The retail price report is the 2 increase in April, the Labor Department’s Consumer Price Index reported. seasonally adjusted 0.6 percent government’s most-watched in- monthly increase in April, eas- dicator for inflation, which has William Dillard 2d, chief of Dillard’s Inc. said at the company’s Saturday ing from March’s 1.5 percent been kept in check for years. 2 annual meeting the chain is trying to bring a younger feel to its assortment. gain, the Labor Department re- Goldstein of the Conference Steve Wynn’s $2.4 billion resort set to open next April aims to be the most ported Friday in its Consumer Board said the emergence of re- 3 luxurious in Las Vegas, with upscale stores and private branded shops. Price Index. tail pricing power in a strength- Compared with April 2003, ening economy will likely trig- EYE: The social merry-go-round included the American Ballet Theater gala, women’s apparel prices last ger the Federal Reserve to in- 4 a dinner at La Grenouille, Anya Hindmarch’s 10th and a Cuban barbecue. month increased 0.7 percent, crease short-term interest rates, FASHION: Often, just a touch of fur does the trick. Hats, bags, scarves and reflecting the retail sector’s but not alarmingly. muffs are showing up in rabbit, mink, raccoon and, occasionally, a good fake. ability to gradually raise prices “Business is recovering a lit- 6 in recent months after about Women’s clothing prices rose in April. tle bit of pricing power, which is ACCESSORIES: Thanks to a large presence in fall collections, brooches are five years of being plagued by Here, an American Eagle Tropical cami. going to feed their bottom lines 21 set to be the It accessory in jeweled, feathered, giant or demure styles. price deflation, which can cut and allow them to go out and in- INNERWEAR: A battle for store space is taking shape for spring 2005, into sales and profits. However, for apparel abroad due to the vest…and keep this [economy] according to buyers and vendors at the May market. compared with April 1999, weakened U.S. dollar. spinning,” Goldstein said. 22 women’s apparel prices are “However, we expect the Federal Reserve Chairman down 7.9 percent. downward pressures on pricing Alan Greenspan also has told The WWD Business Review appears as a special section on pages 9-20. “It looks as if there’s a will return in coming months, Congress he is not worried Obituary ....................................................................................................8 change in the market for appar- due to the relentless pressures about the specter of rising el,” said Ken Goldstein, econo- of very low-price imports,” prices, but he indicated an in- Classified Advertisements ..................................................................25-27 mist with the Conference Board, McMillion said in a statement. terest rate hike is inevitable to pegging the pricing power, like Economists widely expect keep inflation in check. The Fed To e-mail reporters and editors at WWD, the address is in much of the economy, to in- the downward pressure on doesn’t appear anxious to act, [email protected], using the individual’s name. creased demand. prices to intensify come Jan. 1, though, since earlier this month WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 Aside from women’s apparel when all quotas limiting apparel it left interest rates unchanged FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. prices posting monthly and and textile trade among World at 1 percent. Rates haven’t VOLUME 187, NO. 103. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional year-over-year gains, pricing Trade Organization members changed since June 2003. issue in January, May, June and November; two additional issues in February, April, September, October and December; and three additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 strength in other categories of are lifted. Quotas have placed Meanwhile, retail prices for West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; apparel were mixed. an upward pressure on prices women’s outerwear in April fell Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Girls’ apparel prices fell a because of the need to back up a seasonally adjusted 0.9 per- 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- monthly 2.8 percent, but in- production and the costs of ob- cent for the month and were off President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at creased 1 percent from a year taining quota rights. Moreover, 4.1 percent from April 2003. additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration ago. Men’s wear prices were un- China’s expected dominance Dress prices fell 3.1 percent for No. 88654-9096-RM0001. 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Address all editorial, business, and production dipped a monthly 0.7 percent, on retail prices. gained 3 percent in April correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, while posting a 1.9 percent gain In the overall economy, prices against March and increased please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild since April 2003. for all retail goods increased a 3.8 percent from a year ago. magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive Charles McMillion, chief econ- monthly, seasonally adjusted 0.2 Women’s underwear, nightwear, these offers and/or information, please advise us at P.O. 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