Paris Linge Inside: SAKS FIFTH AVENUE’S REBRANDING PLAN/2 Pg. 13-21 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • December 13, 2004 • $2.00 rie Preview Accessories/Innerwear/Legwear Staying In NEW YORK — Slipping into something a little more comfortable means exactly that. This season, lingerie designers are in the mood for ease. Here, Josie’s hooded polyester terry cloth sweatshirt. For more, see pages 6 and 7. Y CLARKE; STYLED BY BOBBI QUEEN Y CLARKE; STYLED BY WWD Exclusive T NYC; FASHION ASSISTANT: HOLL ASSISTANT: FASHION T NYC; Tommy’s Big Move: Hilfiger Said Buying Y ZARAJOZA/MANAGEMEN BRYAN Karl Lagerfeld Brands By Lisa Lockwood NEW YORK — Karl Lagerfeld has a surprising new parent — and it’s none other than Tommy Hilfiger. ARREN TRICOMI MANAGEMENT; MAKEUP B ARREN TRICOMI MANAGEMENT; Fresh off his wildly successful collaboration with H&M and a trip to Tokyo where he inaugurated the opening of the largest Chanel store in the world, Lagerfeld is turning the spotlight on his own brands. He is expected to announce YNCH AT TRUMP; HAIR BY YUSEF/W TRUMP; HAIR BY YNCH AT today that he has sold the Karl Lagerfeld trademarks to Tommy Hilfiger Corp., the $1.88 billion apparel firm, for an undisclosed amount of cash. See Designer, Page32 PHOTO BY KYLE ERICKSEN; MODEL: NERRY L KYLE PHOTO BY 2 WWD, MONDAY, DECEMBER 13, 2004 WWW.WWD.COM WWDMONDAY SFA Puts Forth a ‘New Vision’ Accessories/Innerwear/Legwear for any incoming management for. The Fallon research helped GENERAL By David Moin Karl Lagerfeld is expected to announce today that he has sold his signature to devise a rallying cry to en- form the basis of the Saks “brand NEW YORK — After a year of courage workers, and to lay out filter” roadmap for the future and 1 trademarks to Tommy Hilfiger Corp. for an undisclosed amount of cash. sweeping management changes, big objectives, which Saks man- became the outline for manage- After a year of sweeping management changes and store closings, Saks store closings and self-analysis, agement has done. It’s another ment’s message to employees. 2 Fifth Avenue has a bold strategy that calls for a “retail revolution.” Saks Fifth Avenue has a strategy matter to translate the talk into “We did a lot of research with for the future, and it calls for no action and effectively execute to Fallon and also used different EYE: If there was a common theme to the Neue Galerie’s Winter Gala it was less than a “retail revolution.” achieve the goals. sources and formed what we 4 change…Planning “To Russia With Love” in TriBeCa. Among the objectives: elevat- However, the new Saks exec- want to project as the new vision FASHION: The season’s coziest, frills-free loungewear looks are perfect for ing service, targeting a younger utive team has been on the road for Saks Fifth Avenue,” said Fred 6 those days spent curled up with a good book. audience and bigger apparel to show that change is in the Wilson, the chairman and chief spenders. On the selling floor, works for a company that needs executive officer of Saks Fifth The race to appoint a new director-general to head the WTO intensified with the intent is to blend brands to it. SFA has a murky identity and Avenue Enterprises. Wilson said 12 France formally nominating former EU Trade Commissioner Pascal Lamy. project a more modern style and performance has lagged the the executive committee as been Classified Advertisements ..................................................................34-35 create a greater spectacle. competition. Neiman Marcus on the road since March and con- While management has yet to and Nordstrom just keep out- tinues to make presentations. To e-mail reporters and editors at WWD, the address is publicly articulate the game pacing Saks, with Neiman’s re- “It’s important. There’s a lot of [email protected], using the individual’s name. plan, the executive team has cently showing up to four times action taking place in a whole WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 conducted PowerPoint presen- the rate of profitability. number of areas,” Wilson added, FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. tations in the past few seasons Earlier this year, the Fallon without divulging details. VOLUME 188, NO. 123. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue in January, May, June and November; two additional issues in February, April, September, October and December; and three to motivate its 12,000 associates Brand Consulting group inter- According to sources, the additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 toward higher standards of serv- viewed vendors, customers and presentation, called “Saks Fifth West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; ice and provide the vision of store employees about what Saks Avenue: Creating a Retail Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior what’s ahead. It’s not unusual stands for, and what it should stand Continued on page 28 Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is CITA Denies Goods Over Quota in Jan. required for change of address. Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, By Kristi Ellis pending on country, mode of goes on 12 categories, and anoth- please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild shipment and other factors,” er five categories are on hold. 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 WASHINGTON — Retailers and said a statement from CITA. “If The apparel categories that could these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. importers are facing the first an importer chose to have his be locked out of the U.S. until WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED pinch from the impending non- product exported before Jan. 1 Feb. 1 if U.S. companies over- MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART quota world. and the product is a quota prod- shipped this year include wool WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED The interagency Committee for uct, there is a possibility the coats from Bulgaria, cotton and TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE the Implementation of Textile quota would have filled prior to man-made fiber bras from China, ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. Agreements sent a shock wave the end of 2004. This situation cotton and man-made fiber dress- through the retailing and import- would have been a violation of ing gowns and robes from China, MONDAY: The Commerce Department releases the ing community last week with a the agreement between the U.S. men’s and boys’ woven shirts from November retail sales report. directive to U.S. Customs & and the exporting country.” India, wool coats from Malaysia, Border Protection to deny entry Executives expected over- men’s and boys’ wool suit coats TUESDAY: The Commerce Department releases the in January to any apparel and tex- shipped goods in 2004 to automat- and wool sweaters from the October import and trade report. tile products that were shipped ically be allowed entry on Jan. 1 Philippines. Cotton sheets, shop Inditex reports third-quarter sales and earnings. over their quota limits this year. because that is the date global towels, man-made fiber pillow- U.S. retailers, apparel manu- quotas on apparel and textiles cases and sheets from Pakistan THURSDAY: Nike Inc. reports second-quarter sales and facturers and importers ex- will be eliminated among World are also at risk. earnings. pressed outrage over CITA’s de- Trade Organization countries. “We asked CITA for one thing: cision, which some deemed Further compounding the predictability,” said Peter Gaabe, FRIDAY: The Labor Department releases the Consumer “punitive.” problem for U.S firms, CITA an- chief operating officer of Carole Price Index for November.