PRADA DELAYS IPO/2 TAPPING INTO LUXURY/4 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • November 29, 2004 • $2.00 Accessories/Innerwear/Legwear Knock On Wood NEW YORK — Designers definitely have been barking up the right trees for spring. Accessories such as Calvin Klein Collection’s walnut and suede sandal and Cero Designs’ wooden or wood and sterling silver bracelets, shown here, show why this natural material is chic at the moment. For more on the trend, see pages 6 and 7. Holiday Kickoff: Despite Strong Start, Retailers Still Cautious By David Moin cautious in their holiday outlook. apparel, especially products that BY SHOSHANNA FISCHHOFF NEW YORK — Even as shoppers flooded Consumers were driven by offered luxury and exclusivity. their stores over the weekend, doorbusters and pent-up demand as Specifically, DVD players, iPods, spending $23 billion on everything they sought out electronics, toys, cashmere sweaters, diamonds, fur from flat-screen TVs to fur-trimmed jewelry and gift cards. Other leading trim tops, handbags, boots and tops, retailers stayed cool and categories included accessories and See Yule, Page 14 PHOTOS BY THOMAS IANNACCONE; STYLED 2 WWD, MONDAY, NOVEMBER 29, 2004 WWW.WWD.COM WWDMONDAY Prada IPO Future Uncertain Accessories/Innerwear/Legwear MILAN — Prada chief Patrizio Bertelli decided to GENERAL HOLIDAY PULSE: Must-have products, good weather and pent-up demand delay the company’s planned initial public offer- Patrizio Bertelli ing for a fourth time while saying for the first time 1 drew shoppers to stores on Black Friday. that selling the Jil Sander and Helmut Lang Understanding the Chinese customer is essential for Italian luxury firms brands was an option. 4 looking to expand there. In an interview with Italian newspaper La Repubblica last week, Bertelli said an IPO next FASHION: Wooden accessories, ranging from belts and bracelets to year was also ruled out. 6 handbags, are in the spotlight this spring. “Af ter that, we’ll see,” said Bertelli. INNERWEAR: The Curvation by Bestform bra brand is looking to become a This is the first time Bertelli firmly said a Prada 10 $100 million megabrand over the next few years. listing will not happen in 2005. Until now, Bertelli said if market conditions allowed, he would go Classified Advertisements ..................................................................18-19 ahead with an IPO before June 2005, which is when convertible bonds worth 700 million euros, or $900 To e-mail reporters and editors at WWD, the address is million at current exchange, are due. [email protected], using the individual’s name. The bonds are guaranteed by a pool of Italian WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 banks. Bertelli declined comment for this article. FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. As previously reported, Riccardo Stilli’s depar- VOLUME 188, NO. 112. 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 ture last month as chief financial officer was additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 viewed as a sign Prada was stalling its public list- West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; ing. Stilli was considered pivotal to the IPO project. 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 In the interview with La Repubblica, Bertelli ad- Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- mitted Stilli’s resignation was connected to a new President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at course for Prada. “There were no clashes [with 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. Stilli]. Stilli was “focused on the listing…Now we Speculations about Prada going public POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. move on to another phase,” said Bertelli. emerged in the spring of 2000. In July 2002, after FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR A luxury goods analyst here who spoke on con- three postponements caused by rocky market con- 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 dition of anonymity, said the postponement was to ditions, Bertelli decided to hold the listing until a subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production be expected in light of Stilli’s departure. “If more favorable time, relying on other means to correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, Bertelli manages to continue to boost its business raise cash, such as selling off some real estate. please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully through the Prada and Miu Miu brands, and to In the interview with La Repubblica, Bertelli screened companies that offer products and services that we believe would interest our readers. If you do not want to receive pay back the bonds some other way, he might also shed light on the reasons for Jil Sander’s de- these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. never list the company,” said the analyst, who be- parture two weeks ago — her second in four years WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED lieves Bertelli does not view the Bourse as an — attributing the split to the designer’s disagree- MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART ideal and ultimate solution. ment with Prada’s focus on the bottom line. WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED “Weighed down by the problematic Jil Sander “Jil had a very unique view which was not in line TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE and Helmut Lang businesses, he thinks the market with the strategy of a group, which pursues goals ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. will underestimate the group,” said the analyst. and results,” he said. For the first time, Bertelli said Conversely, luxury goods consultant Armando he did not rule out the sale of either the Jil Sander TUESDAY: The Conference Board releases the Branchini said Bertelli is merely waiting for the or Helmut Lang brands. One source familiar with Consumer Confidence Index for November. “most opportune moment” to list the group. the situation said Bertelli is looking at selling the Chico’s and Hudson’s Bay report third-quarter sales Branchini praised Bertelli’s decision. “It’s a good two businesses, perhaps to a closed-end fund or, in and earnings. move: he wants the market to acknowledge the the case of Jil Sander, to the designer herself. value of his company,” said Branchini. — Luisa Zargani WEDNESDAY: Neiman Marcus Group reports second- quarter sales and earnings. Dollar General reports third-quarter sales and earnings. WTO OKs Sanctions Against U.S. THURSDAY: Kellwood Co. reports third-quarter sales and earnings. By John Zarocostas Similarly, textiles and appar- However, Alan Wolff, head of Gildan Activewear reports fourth-quarter sales and el also feature prominently on international trade practice at earnings. GENEVA — The World Trade the hit list drawn up by Japan. Dewey Ballantine, Washington, Hong Kong Jewelry Manufacturers Exhibition Organization Friday gave au- Japan estimates it could slap said his assessment was the (through Sunday). thorization for the European punitive duties against U.S. Byrd amendment “will not be re- COMING THIS WEEK Union, Japan, Korea, Canada, goods for $78 million in dam- pealed any time in the future.” Mexico, India, and Brazil to im- ages, and the EU estimates its The Byrd amendment levies pose retaliatory punitive tariffs entitled to about $50 million in dumping and antisubsidy duties on U.S. products if the U.S. fails retaliatory tariffs. on foreign companies it perceives In Brief to promptly repeal the Byrd Steve Fabry, U.S. legal advis- to be selling goods below cost, or amendment. er, said the U.S. intends to com- to be recipient of subsidies, and The amount in punitive dam- ply with the recommendations then distributes the proceeds to ● CAPITAL INCREASE A GO: KarstadtQuelle got the green light ages against the U.S. — based on and rulings of the WTO, and the U.S. companies affected. for its 535 million euros, or $711.6 million, capital increase after the latest year figures — could col- stressed this intention to mem- The EU’s Raimund Raith the department store and catalogue group resolved a dispute lectively amount to $150 million.