PLUS: BELK’S $600M ON A ROLL INVESTMENT PLAN. PAGE 2 MEN’S WEAR CONTINUES TO BLOSSOM FOR SPRING. WWDPAGE MW1 THURSDAY, MARCH 29, 2012 Q WOMEN’S WEAR DAILY Q $3.00 COURTROOM BATTLE Gucci, Guess Square Off The In Trademark Dispute in question were “studied imita- By EVAN CLARK and tions of Gucci trademarks” and that ALEXANDRA STEIGRAD the company had “knocked off ” Short over $200 million in Gucci product. NEW YORK — After nearly three “This case is not about following years of trading trademark barbs, fashion trends,” Ederer said, not- Gucci and Guess Inc. finally squared ing the defense argued that it was off in a federal court here Wednesday. just keeping up with emerging de- At issue in the class-versus-mass signs. “It’s about a massive, compli- trial — which could last up to three cated scheme to knock off Gucci’s weeks and promises to explore how best-known and iconic designs.” designers create and fashion com- Ederer told U.S. District Court Of It panies operate — is whether or not Judge Shira Scheindlin that the Guess infringed on Gucci’s rights “midmarket” Guess copied the by using a variety of design ele- luxe firm’s wares, including a pop- It’s quirky, a little bit tough ments, including a block letter “G,” ular logoed messenger bag with and, yes, it’s a suit. With a combination of green and red a red and green stripe, with the stripes and diamond-logoed motifs. “clear intent” to make consumers edge trumping tradition, Gucci filed the suit in New York “think it’s Gucci.” the look is becoming ever federal court in 2009. Marc Fisher Ederer said that the infringe- Footwear, Guess’ exclusive licensee ment was a company-wide effort, bolder for fall. Here, for footwear, is also a defendant. which implicated the senior exec- Zero + Maria Cornejo’s In his opening remarks, Gucci’s utives and managers of Guess. leather bolero and shorts attorney, Louis Ederer of Arnold & “May 9th marks the three-year Porter LLP, said the Guess designs SEE PAGE 6 and Autumn Cashmere’s cashmere sweater. Soxland socks; Alexander Wang boots. Stefano Pilati Talks For more, see pages 4 and 5. Talks” series, it was scheduled By MARC KARIMZADEH before the designer’s ouster from COSMETICS YSL, the house he worked for 12 NEW YORK — “Lots and lots and years (eight as its chief designer); NARS lots of vacation.” exactly a month to the day after FOR That’s Stefano Pilati, jok- YSL revealed his departure and ingly describing his next move to paved the way for Hedi Slimane MIYAKE Pamela Golbin, chief curator of the to succeed him, and in the same Musée de la Mode et du Textile at week major YSL executives were MISUZU the Louvre, during a conversation in town because the fashion BY at Florence Gould Hall Tuesday house sponsored the Metropolitan night — the designer’s first public Opera’s gala premiere of “Manon” MAKEUP appearance since his final Yves on Monday night. Saint Laurent show earlier this None of it, however, stopped PRIANO; month. The event was held under Pilati from talking about his ca- unusual circumstances. Part of reer, which took him from Cerruti TIMOTHY the French Institute Alliance to Giorgio Armani, Prada and YSL; BY Française’s annual “Fashion SEE PAGE 6 ARTISTS AT FITZSIMONS ANDREW BY HAIR SARA/MUSE; PHOTO BY JOHN AQUINO; STYLED BY BOBBI QUEEN MODEL: 2 WWD thursday, march 29, 2012 Belk’s Investements Paying Dividends to department redos, and higher ad spending, with the Briefing Box By DaviD Moin about 10 percent for branding, while still being pro- motional. “We are beginning to experiment with new in Today’s WWd For Belk inc., investments in systems, branding, forms of marketing, such as Belk Bowl,” said Tim remodeling stores, e-commerce and service — to the Belk, explaining that the retailer has become the title tune of $600 million over five years — are paying off. sponsor of a college football game that was previously Belk’s net income for the fiscal year ended Jan. called the Meineke car care Bowl. “Football repre- 28 increased 43.5 percent to $183.1 million on a 5.5 sents the Southern lifestyle,” he said, adding that the percent comparable-store sales gain to $3.7 bil- game, which was held Dec. 27, gave great exposure to lion, which is close to the prerecession volume of the store through national advertising. $3.8 billion. Belk is also continuing to build its private label in 2010, Belk’s net income came to $127.6 million, business, and this spring has added nD Weekend, and volume was $3.5 billion. Belk’s fourth-quarter net a casual line in women’s, and islander, a Tommy rose 32.2 percent to $125.6 million, Bahama-inspired resort casual line while sales rose 4.5 percent to $1.23 Tim for men, among other moves. billion, and 5 percent on a comp basis. Belk in 2010, Belk unveiled a major “Two of the investments we made strategic shift from a growth through are clearly showing in the results,” acquisitions to seeking organic John Aquino Belk’s chairman and chief execu- growth by getting stores to be more by tive officer Tim Belk told WWD productive. From 2002 to 2007, A view of the Kenneth Cole Collection. on Wednesday, after the company Belk bought Proffitt’s, Mcrae’s and Photo released its 2011 results. “one is Parisian, boosting its revenues by After nearly three years of trading trademark barbs, ‘Project impact,’ where we’ve added $1 billion and spreading its regional Gucci and Guess Inc. finally squared off in a Manhattan planners and technology and science nto dominance to Tennessee, Mississippi A federal court Wednesday. PAGE 1 to our assortment making. That’s S and alabama. The company also sub- rk been big. The second one is brand- A sequently purchased Migerobe inc. to M Stefano Pilati spoke at French Institute Alliance Française’s ing with our new tag line ‘Modern. establish a fine jewelry division. Southern. Style.’ and aligning our by While Belk has long excelled in cos- “Fashion Talks” series on Tuesday in his first public appearance since his final Yves Saint Laurent show. PAGE 1 organization behind it. That seems Photo metics, the chain has been seeking a to be really resonating. There’s been better balance by pumping up a host of positive feedback on Facebook and in the stores.” categories — shoes, jewelry and denim among them. last Ronald B. Johnson, J.C. Penney Co. Inc.’s chief executive The charlotte, n.c.-based, 303-unit regional depart- year, the strongest categories were ladies’ shoes, chil- officer, received $53.3 million in total compensation last ment store chain ended the year with $456 million in dren’s and home. “Shoes has been a very strong business year, mostly in stock awards. PAGE 3 cash and intends to repurchase up to 2.45 million shares for the last two years, but surprisingly home had the high- of stock at $40.80 a share beginning around april 20. est increase last year. it was up 12 percent,” Belk said. PVH Corp. is tapping the brakes on its fast-growing Tommy During the interview, Belk broke down how the He said women’s apparel was up mid- to low- Hilfiger and Calvin Klein businesses, projecting both to $600 million, allocated for the 2011-2014 period, is single digits, with modern and contemporary show- grow at slower rates than they did in 2011. PAGE 3 being spent. “We are investing in iT in a very sig- ing the highest gains; traditional sportswear was nificant way — $210 million is going into new capa- slower. However, men’s wear overall was stronger John Idol, chairman and chief executive officer of Michael bilities. it’s a 27-month journey,” Belk said, citing than women’s, he added. Kors Holdings Ltd., gave the keynote speech at the sixth the installation of a new oracle enterprise system, “We expect the year ahead to be a little better annual Penn Fashion Week. PAGE 6 including demand forecasting, merchandising fi- than the year behind us,” Belk said. “The economy nancial planning and size optimization. seems to be getting a little better…We are encour- Karl Lagerfeld’s latest extracurricular project is reimagining another $270 million is allocated for new stores; aged. Business is good, and it’s started out this year key areas of the Hotel Métropole Monte-Carlo. PAGE 7 expansions; remodels, from full-store renovations to be a little better than the prior year.” Spurred on by key trends such as slimmer fits and vivid color, men’s apparel sales have been one of the brightest Nike Files Suit Against Reebok Over NFL Merchandise categories for many retailers. PAGE MW1 neW York — The nike and The adidas a.G.-owned reebok nike will succeed reebok as the reebok rivalry is about to reach has “never had an agreement with supplier of nFl team uniforms Barneys New York has relocated the sportswear offering a new level. Tebow individually, nor did it and as a licensee to manufacture from four vendors from the Madison Avenue store’s main nike inc. slapped reebok obtain permission or consent to and sell certain nFl-authorized floor to the seventh. PAGE MW2 international ltd. with a lawsuit manufacture Tebow Jets product,” apparel featuring nFl marks. Wednesday, claiming that its com- according to court papers filed in Until then reebok may create new The lack of cold weather took a bite out of the business petitor has been selling national new York federal court.