ARMANI’S BEIJING BRIDGET FOLEY’S DIARY BASH WINDOW-WATCHING AT BARNEYS PAGE 13 PAGE 3 TOUGH TURNAROUND Jean-Paul Agon Sycamore to Buy Talbots for $369M By VICKI M. YOUNG THE TALBOTS INC. ended up with Sycamore Partners after all. Sycamore is buying the struggling women’s spe- cialty chain for $193.3 million in cash. Including net debt, the transaction has a total value of $369 million. FRIDAY, JUNE 1, 2012 ■ $3.00 ■ WOMEN’S WEAR DAILY The deal is expected to close in the third quarter. The acquisition price will give shareholders $2.75 WWD a share, less than the $3.05 a share that was previ- ously put on the table by the private equity fi rm. The price per share that shareholders will receive CEO SUMMIT 2012 is still far more than the closing price of Talbots’ stock on Wednesday, which was $1.29 a share. Shares of Talbots spiked 89.2 percent to $2.44 in trading Thursday on the Big Board. Stefan Kaluzny, managing director of Sycamore Partners, said his fi rm is looking forward to a “long and successful partnership with Talbots serving its many loyal customers.” Trudy Sullivan, Talbots’ president and chief execu- Beauty’s tive offi cer, said, “Sycamore Partners is a strong in- For three days in May, top leaders of the global cosmetics industry gathered vestor with substantial resources and expertise, and we look forward to operating as a private company in Palm Beach, Fla., to explore the under their ownership.” shifting landscape and emerging Sullivan plans to step down at Talbots on June 30, or sooner if her successor is found. consumers that pose a riddle as well Thursday’s announcement was an abrupt change as a much-sought prize. For complete from a week ago, when the two said the exclusivity coverage, see pages 6 to 12. agreement they had to close on a transaction had ex- pired without further extension. The news led inves- New tors to believe that Sycamore had walked away, since John Talbots said it was weighing alternative options. There Demsey even was speculation that Talbots might be facing a bankruptcy before yearend if it couldn’t fi nd a buyer. Talbots has been struggling with persistent losses, a multiyear decline of its stock price and liquidity concerns. Besides the retirement of Sullivan without identifying a successor, the chain also dismissed its chief creative offi cer, Michael Smaldone, in September. His position has not been fi lled. The retailer operates in World SEE PAGE 4 Marigay Iman McKee Letter From London By SAMANTHA CONTI LONDON — She was a fresh-faced 25-year-old on an offi cial tour of Kenya with her husband of six years, E. Scott Philip. Harry Truman was president of the United Beattie States and Winston Churchill was the British prime minister. And on Feb. 6, 1952, Elizabeth Windsor be- came Queen of England. Her coronation on June 2, Zhuo “Joe” 1953, seemed to herald a new era for Britain — for on Wang the same day it was announced that a British-led team had conquered the world’s highest peak, Mount Everest. Flash-forward 60 years and it once again seems Britain’s time. The nation is preparing to mark the Queen’s Diamond Jubilee — making her the sec- ond-longest-serving monarch after Queen Victoria. London is hosting the Summer Olympics for the fi rst time since 1948. All that’s needed is for a Briton to win Wimbledon and it would seem the stars were in absolutely perfect alignment. That’s unlikely to happen, but nothing would sur- prise the 86-year-old monarch with the white set curls, megawatt smile and penchant for horse racing, homeo- pathic remedies, corgis and silk Hermès head scarves. Throughout her six-decade reign, she’s weathered family tragedy, scandal, mishaps and more — and has remained as implacable as Mount Everest itself. Her famous annus horribilis in 1992 — when she marked her 40 years as queen — was a particularly trying time in a diffi cult decade that saw her family behaving badly and public opinion for the monarchy hitting a low. Princess Diana’s death in 1997 — and the Queen’s initial failure to tune into the national PHOTOS BY STEPHEN LEEK SEE PAGE 16 2 WWD FRIDAY, JUNE 1, 2012 Nike to Divest Cole Haan, Umbro THE BRIEFING BOX Nike in 1988. The brand special- losses at Umbro, Hurley and Cole IN TODAY’S WWD By VICKI M. YOUNG izes in casual and dress leather Haan. He noted that while rev- footwear, bags and outerwear. enues have risen for the smaller NIKE INC. is trimming its port- But the company has suffered business, profitability was chal- folio to focus on its four core ath- ups and downs under Nike, lenged primarily by lower gross letic brands. bringing in a string of ceo’s to margins. He also noted that as Princess Elizabeth, The company said Thursday build the brand in the U.S. and the company was heading into circa 1930. it will sell the Cole Haan and internationally with mixed suc- the fourth quarter, it expected Umbro brands. The move will cess. While Cole Haan has adopt- strong revenue growth driven allow it to focus on growing the ed Nike Air technology for many “largely by the strength of the Nike, Jordan, Converse and of its shoes, and worked with Nike brand and Converse.” IMAGES Hurley divisions. The group will Maria Sharapova on a collection, For the third quarter ended begin the divestment process im- it remained a small part of the Feb. 29, the Beaverton, Ore.-based mediately, and it expects to com- overall Nike business. athletic footwear and apparel plete the sales by the end of the British soccer brand Umbro giant expanded net income 7.1 ASSOCIATION fiscal year on May 31, 2013. was acquired in 2008 and was percent to $560 million, or $1.20 Mark Parker, president and trumpeted at the time by Nike a diluted share, above the $1.17 chief executive officer, said, “We as a move to build its global busi- analysts’ estimate as well as the see tremendous opportunity to ac- ness in the key category. year-ago mark of $523 million, or ARCHIVE/PRESS celerate profitable growth around In its last conference call to $1.08. Total revenues were up 15.1 PA the world by continuing to deliver Wall Street on March 22 when percent to $5.85 billion from $5.08 BY innovations and inspire consum- the firm posted third-quarter billion, as Nike brand footwear PHOTO ers through the Nike brand.” earnings, Donald W. Blair, chief sales rose 16.7 percent to $3.35 Parker added that the com- financial officer and vice presi- billion, and apparel volume was pany also saw “significant poten- dent of Nike Inc., said earnings up 12.2 percent to $1.46 billion. Sycamore Partners is buying The Talbots Inc. for tial” in the Jordan, Converse and before interest and taxes for its For the nine months, net in- $193.3 million in cash, in a deal expected to close in the Hurley brands, which he said have other-businesses category rose 2 come rose 8.8 percent to $1.67 third quarter. PAGE 1 “unique consumer relationships percent due to solid profit growth billion, or $3.56 a diluted share, that complement the Nike brand.” at Converse and Nike Gold, al- as revenues added 17 percent to The global spotlight is on Great Britain as the nation Cole Haan was acquired by though that was mostly offset by hit $17.66 billion. prepares to celebrate Queen Elizabeth II’s Diamond Jubilee. PAGE 1 Barneys New York expects to unveil the new windows, created with the Deste Foundation for Contemporary Art, at PPR Relocating Paris Headquarters its Madison Avenue flagship tonight. PAGE 3 PARIS — Yves Saint Laurent similar style, Allianz stated. make California his creative hub. Rive Gauche? Or Yves Saint Renovations began in June 2011 Since being appointed at YSL Most U.S. retailers posted modest comp-store sales gains Laurent West Coast? and are due to be completed at the in February, Slimane also spent in May, and they may have Mother’s Day to thank. PAGE 4 Yo u could use both addresses end of 2013, with PPR expected time working out of the Paris of- for the storied French fashion to move its headquarters there in fices of Artémis Group, the hold- In order for companies to lead tomorrow, executives have house as word emerged that YSL 2014, the real estate firm added. ing company for PPR. It is un- to go where customers are leading them, Estée Lauder’s parent PPR signed a lease to A spokeswoman for PPR said the derstood he plans to use salons John Demsey said at the WWD Beauty CEO Summit. PAGE 6 move its Paris headquarters to French retail-to-luxury conglomer- there at 12 Rue François 1er for the Left Bank. ate would move its corporate of- fittings, while ateliers for YSL When it comes to building a beauty brand, technology Separately, a YSL spokeswom- fices, presently located at 10 Avenue continue to be based at its cur- has flattened the playing field, said Elizabeth Arden Inc.’s an confirmed that new creative Hoche on the Right Bank, but had rent headquarters on the Avenue E. Scott Beattie. PAGE 8 director Hedi Slimane plans to yet to decide if any of its brands George V here. base his creative studio in Los would follow suit. She declined to Slimane has a passion for big Iman’s message to mass-market channels: ethnic Angeles on an ongoing basis.