GWEN’S MOBILE LATEST LOOK DIEGO DELLA VALLE UNVEILS A NEW STORE CONCEPT BACK REPORT CARD FOR TOD’S ON MADISON AVENUE. PAGE 4 GWEN STEFANI TALKS ABOUT A NEW STUDY RANKS HER LABEL L.A.M.B.’S RETURN TO NEW YORK BRANDS BY THEIR APTITUDE IN FASHION WEEK. PAGE 6 MOBILE COMMERCE. PAGE 6 EXCLUSIVE Jason Wu Sells Majority Stake By EVAN CLARK NEW YORK — Jason Wu sold a controlling stake in his business to InterLuxe — a new investment fi rm that leans on the fashion expertise of Gary Wassner FRIDAY, SEPTEMBER 5, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY and Allen Questrom. WWD The designer, who unveils his spring collection on the runway today, plans to use the new funds to open a fl agship and expand his budding e-commerce and handbag businesses. InterLuxe is backed by Lee Equity and chaired by Gary Wassner, who supports much of the New York designer community as co-chief executive offi cer of the factoring fi rm Hilldun. A ceo with a fashion back- ground is expected to be named today. Although neither Wu nor Wassner disclosed the terms of the deal, a source familiar with the transaction said the investment house bought control of the fi rm, Off beat which has revenues in the neighborhood of $20 million. InterLuxe is one of a growing number of investors targeting designer businesses, trying to both build up brands and catch a little of the lightning that has SPRING 2015 driven the likes of Michael Kors Holdings Ltd. and Ease Tory Burch to multibillion-dollar valuations. Clifford Shane Gabier and NEW YORK Moskowitz, who has a background in private equity, Chris Peters showed a serves as InterLuxe’s president. COLLECTIONS Investors are largely looking for brands that have Creatures of the Wind established businesses and solid name recognition, collection that was at but plenty of room to grow. Wu, who shot to global prominence when First Lady once beautiful, interesting Michelle Obama wore his white gown to President and relaxed, infused with that intellectual Obama’s fi rst inauguration ball, fi ts that profi le. chic the duo is known for. Here, In an interview between fi ttings at his studio Thursday, the 31-year-old Wu said, “I don’t know if I should feel their gingham tank worn with a fully good that people call me a young designer or not so good embroidered skirt. For more on New York now….It’s a young business. I’m not a young designer.” Fashion Week, see pages 8 and 9. Wu started his business eight years ago and described Wassner as “my fi rst supporter.” SEE PAGE 16 Andrew Rosen Talks Theory’s Next Phase By LISA LOCKWOOD ANDREW ROSEN has hit the refresh button. Theory, the contemporary brand he cofounded that is approaching $1 billion in global sales, is looking to sharp- en its sportswear offerings in the wake of the departure in June of Olivier Theyskens, who served as artistic di- rector. The company has rehired Lisa Kulson, former vice president and head designer of Theory who left in 2001, returned in 2012 as a consultant and was named creative director of women’s design this past spring. “The time to refresh and go to the next level is now,” said Rosen, the fi rm’s chief executive offi cer who cofounded Theory with Elie Tahari in 1997. “The world has changed so much. You think about the re- tail landscape and how the customer is changing and her reaction to things. What turns her on now? It’s a very different world. Companies like ourselves are very different today than we were fi ve years ago.” Rosen has always been a product person, fi rst and foremost, and he admitted that the company got stale. “What we’re looking to do is not lose the integrity of what the company stands for or the aesthetic of the company, but to continue to evolve our methodology of doing business,” he said. “We need to sharpen some of the things that we’ve gotten stale with. It’s things that I would notice. I really want to sharpen up.” While Theory is known for being one of the fi rst to inhabit the contemporary arena — which today has become oversaturated with brands — Rosen still be- lieves strongly in the sector, pointing to the energy of PHOTO BY GEORGE CHINSEE SEE PAGE 17 2 WWD FRIDAY, SEPTEMBER 5, 2014 David Yurman Sues Sam’s Club THE BRIEFING BOX The court document also alleged that the defen- IN TODAY’S WWD By VICKI M. YOUNG dant induced one or more of Yurman’s authorized retailers to sell the products to Sam’s Club in viola- NEW YORK — David Yurman Enterprises and David tion of their authorized retailer agreements. In the Yurman IP LLC on Thursday sued Sam’s East Inc. and industry, the unauthorized practice is sometimes Sam’s West Inc., which operate as Wal-Mart Stores referred to as “transshipping.” Inc.’s Sam’s Club, in a federal district court in Houston. The company is seeking injunctive relief to The lawsuit alleges trademark infringement, bar Sam’s Club from selling the alleged infringing false designation of origin, tortious interference product as well as unspecified damages and related with Yurman’s contractual relations and unfair legal costs, such as attorney’s fees. competition in connection with the sale of David “Our company very carefully controls the retail Yurman-branded jewelry. distribution of our merchandise to ensure that David In the complaint, Yurman charged the member- Yurman jewelry and timepieces are available at only ship warehouse club with “wrongful, unauthorized the finest jewelry and department stores, consistent promotion and sale” of the infringing items in sev- with the image and goodwill of the David Yurman eral locations in Texas, other stores throughout the brand that our founders, the Yurmans, have worked U.S. and through its Web site. The legal document so hard over the years to build,” said Phillips Nazro, said a concern was that the sale of the alleged in- David Yurman’s vice president and general counsel. GREENE fringing jewelry “suggests” that Sam’s Club is au- A spokeswoman for Wal-Mart commented, “We Backstage at the Creatures of the thorized by Yurman to sell the merchandise, when have protocols in place to provide our members with Wind show. For more from New JENNA “Yurman has in fact never provided Sam’s Club authentic, high-quality products. We believe those York Fashion Week, see WWD.com. BY with permission to do so.” It also noted a concern protocols were followed in this instance. We will re- PHOTO about the customer experience, saying the “exclu- view the complaint and respond appropriately.” sive network of authorized retailers” receive spe- Wal-Mart owns Sam’s West Inc. It’s that entity cialized training regarding the products and the and its subsidiary Sam’s East that does business as Jason Wu sold a stake in his company to InterLuxe, a new manner in which they are displayed. Sam’s Club. investment firm chaired by Gary Wassner. PAGE 1 Theory is looking to sharpen its sportswear offerings in the wake of the departure in June of Olivier Theyskens. PAGE 1 Second-Quarter Income Drops at J. Crew Tod’s newly redesigned Madison Avenue boutique will “due to increased markdowns, ment continues to be challenging, officially be inaugurated with an event on Monday. PAGE 4 By ARNOLD J. KARR and accounted for the majority of traffic continues to be a head- gross margin deterioration.” wind. We’re not immune to that Nicolas Ghesquière has conceived a Paris pop-up space to J. CREW GROUP Inc.’s second- Even with an aggressive mark- factor.” Promotions remain in a showcase his first Louis Vuitton women’s collection. PAGE 4 quarter profits fell despite a dou- down posture, J. Crew finished the “heightened situation,” he said. ble-digit gain in revenues as the quarter with inventories of $394.7 Haselden noted that the Gwen Stefani previews the L.A.M.B. collection she will show in retailer resorted to heavy promo- million, 22.9 percent higher than Madewell division, currently at 76 PAGE 6 tions to reduce high inventories, the year-ago level of $321.2 mil- units, would expand by 20 stores New York and discusses her new role on “The Voice.” with only limited success. lion, although up about half as this year, its largest annual in- In the three months ended much — about 12 percent — on a crease. “We feel good about the Motorola is breaking into the wearables market today with the PAGE 6 Aug. 2, net income dropped 38.2 per-square-foot basis, the cfo said. way Madewell’s performing,” he launch of the Moto 360 smartwatch. percent to $10.8 million from While still committed to “the said. “We see the same headwinds $17.5 million in the year-ago goal of reaching a position by the at Madewell but we’ve been able to Carine Roitfeld discusses her magazine, CR Fashion Book, as quarter. Adjusted earnings be- end of the year where our inven- manage through them effectively.” well as working for Condé Nast and Hearst. PAGE 10 fore interest, taxes, depreciation tories are more in line with our The company put $35 million and amortization declined less, sales trend,” Haselden pointed into capital expenditures during Charlie Hunnam is the face of the newest addition to the falling 18.6 percent to $67.6 mil- out that its current stocks were the second quarter and expects Calvin Klein fragrances portfolio, Reveal Men.