CASTAGNA RESIGNS/2 WEAK DOLLAR WOES/16 Women’s Wear Daily • The Retailers’ Daily Newspaper • November 15, 2004 • $2.00 ▲ Inside: The WWD WWDMONDAY Business Review. Accessories/Innerwear/Legwear Love ’Em and Leaf ’Em NEW YORK — There’s nothing quite like taking natural forms and re-creating them in lustrous gold and lavish jewels. So designers are coming up with a new crop of flora and fauna for pendants that swing gently on, or accent long, delicate chains. Here, Vera Wang’s diamond, platinum and 18-karat white gold honeycomb flower necklace, 18-karat gold leaf pendant and chain from Hollis Brooks by Brook Kiner and Burning Torch’s cotton dress. For more long stories, see pages 8 and 9. ASSISTANT TALYA COUSINS TALYA ASSISTANT Y BROOKE MAGNAGHI; FASHION NATASHA AT WARREN TRICOMI; STYLED B WARREN AT NATASHA Truly Fast Fashion: H&M’s Lagerfeld Line Sells Out in Hours By WWD Staff collection in about half of its 1,000 redirected to the busiest H&M T WOMEN; HAIR AND MAKEUP BY ass hysteria for Karl. locations. Although the shipments of stores for weekend selling. M That was the situation $49 blouses and $149 wool-cashmere “We’ve been operating this Friday morning at H&M locations in coats were meant to last several business for some 60 years and we’ve the U.S. and Europe as the fashion weeks, most of the merchandise sold never seen anything like it,” said retailer launched its Karl Lagerfeld out by late Friday, with any leftovers See Mad, Page 28 PHOTO BY JOHN AQUINO; MODEL: MONIQUE A PHOTO BY TIONS INC. PHOTO: PATRICK DEMARCHELIER COPYRIGHT 2004 © THE CONDÉ NAST PUBLICA PHOTO: PATRICK Fashion Starts Here. RATEBASE GROWTH OF 89% SINCE LAUNCH AD PAGES UP 75% VS. LAST YEAR 850,000 RATEBASE IN 2005 SOURCES: CONDÉ NAST CIRCULATION DEPARTMENT, FEB 2003-FEB 2005 MEDIAWEEK (JAN - NOV 2003 VS. 2004) 2003: 5 ISSUES, 2004: 9 ISSUES 4 WWD, MONDAY, NOVEMBER 15, 2004 WWW.WWD.COM WWDMONDAY Castagna Exits Penney’s Accessories/Innerwear/Legwear FASHION By David Moin team builder, collaborative and has a balance of merchandising Long necklaces are back for spring in lengths of pearls, diamonds or gold NEW YORK — As expected, and operational skills. 8 with pendants, often with a dangling acorn or clusters of precious stones. Vanessa Castagna, chairman Castagna joined Penney’s as and chief executive officer of executive vice president and J.C. Penney stores, catalogue chief operating officer of its GENERAL and Internet, has decided to stores, merchandising and cata- There was mass hysteria Friday at H&M locations in the U.S. and Europe, leave the company. logue in August 1999, after hav- 1 as it launched the Karl Lagerfeld collection in about half its 1,000 locations. “It was an intense and a diffi- ing served as Wal-Mart’s senior Consumers’ ongoing love affair with luxury goods bolstered top-line and cult decision, but the time is vice president and general mer- 7 bottom-line growth for luxury firms Bulgari and Tod’s SpA. right,” Castagna said Friday, con- chandise manager of women’s. firming a WWD report the day Her appointment marked a de- ACCESSORIES: Jewelry has returned to the spotlight this fall and shows no before that her decision to leave parture from Penney’s usual 10 signs of losing its luster for the spring and summer seasons. was imminent. “They really want- practice of promoting from with- INNERWEAR: The second half of this month’s lingerie market promised a ed me to stay.” Vanessa in its own ranks, and signaled 15 lot of sizzle after a quiet first week, but it generally fizzled out. Ken Hicks, president and chief Castagna that the retailer was serious operating officer of stores and about fixing its women’s business The weakened dollar and the stronger euro are forcing European firms to merchandise operations, will take and ready to battle against mar- 16 raise prices, shore up shrinking margins and hedge their forecasts. on Castagna’s responsibilities as a and Macy’s, got the job. With a ket share winners, such as Target transitional step, the company new leader on board, other exec- and department stores, that were said. Hicks is a member of the utive changes are a possibility. out-promoting Penney’s. EYE company’s executive committee, Castagna, under the terms of Prior to Wal-Mart, Castagna Speaking with Japanese female rock duo Puffy AmiYumi about stardom, and has been with Penney’s since her contract with Penney’s, is free was a gmm at Target and held 6 cracking the U.S. and their new cartoon…a Cinderella story. 2002, coming from Payless Shoe and clear to work with any retail- posts at Federated Department Source, where he was president. er that she finds a job with, and is Stores. The WWD Business Review, a special report, appears on pages 17-26. Before that, he held key merchan- not bound by noncompete restric- “She was there night and day Classified Advertisements ..................................................................30-31 dise and operational slots at tions companies often write into for Questrom,” observed Walter Home Shopping Network, Foley’s executive contracts. However, Loeb, the retail analyst. “She’s a To e-mail reporters and editors at WWD, the address is Department Stores and May Castagna said she won’t think merchant who effectively execut- [email protected], using the individual’s name. Merchandising Co. about starting a new job until ed Allen’s initiatives. She brought WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 A search to consider candi- after the holidays and that she a lot to the table at Penney’s, FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. dates to succeed the 55-year-old wanted to spend some time relax- based on her experiences at Wal- VOLUME 188, NO. 104. 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 Castagna could begin next ing in Naples, Fla., where she has Mart and Target, where she additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 month, after Myron Ullman 3rd a home, and visiting friends. shaped the assortments.” West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; becomes chairman and ceo of the Castagna is likely to be heavi- “Vanessa has made an impor- 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 corporation, succeeding Allen ly recruited, given her experi- tant contribution to J.C. Penney Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- Questrom. Castagna, as the num- ence and because there are plen- and its turnaround, and I am President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at ber two executive in the depart- ty of struggling retailers in need confident she will excel in what- 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. ment store chain, had for months of talent. She denied a report ever she does next,” Questrom POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. been a leading candidate to suc- that Kohl’s had previously tried said in a statement. “She has FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR ceed Questrom. But three weeks to lure her, but added that, in the clearly played a pivotal role in DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. First copy of new ago, Penney’s announced that past 10 days, she’s been contact- improving Penney’s merchan- subscription will be mailed within four weeks after receipt of order. 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