Women’s Wear Daily • The Retailers’ Daily Newspaper • September 30, 2008 • $2.00 WWDTUESDAY Ready-to-Wear/Textiles Happy Talk John Galliano’s spring collection for Christian Dior was inspired by Tribal Chic, but he underplayed the theme, making it, as he said, “never, never literal.” Key elements included a great lineup of fun, flippy dresses and skirts in cheerfully vibrant colors, like those shown here. For more on Dior, see page 6; for more on Paris, pages 7 to 9. A Dire Day for Retail: Stocks in Record Fall As Bailout Collapses By Evan Clark Things went from bad to worse for retailing and the financial world Monday. In Washington, House lawmakers voted down a $700 billion Wall Street bailout package by a 228-205 margin, prompting investors to wonder when — and how — the credit freeze would thaw, and pushing retail stocks to record declines as already-skyrocketing fears over consumer confidence and holiday spending entered the stratosphere. The Standard & Poor’s Retail Index plummeted 6.7 percent, or 25.25 points, to 350.42 — the largest percentage drop in the index since it was recalibrated in mid-2002. Both the second and third largest drops, PHOTO BY DELPHINE ACHARD See Stocks, Page 5 You feel it in your heart. You see the tag. When a design sparks wonder, it is made with CRYSTALLIZED™ – Swarovski Elements. WWW.CRYSTALLIZED.COM 2 WWD, TUESDAY, SEPTEMBER 30, 2008 WWD.COM Claiborne Shaking Up Mexx Exec Team By Whitney Beckett LIZ CLAIBORNE INC.’S “PROBLEM CHILD” is getting new guardians to whip the retailer into shape. To turn around Mexx’s troubled European business, Claiborne is shaking up the $1 billion retailer’s European management team by launching a search for a new chief executive officer and tapping a new creative vice president. The $4 billion Claiborne is searching for a ceo for Mexx — preferably a European, the firm said — which it hopes to find by early next year. In the meantime, Tom Fitzgerald will serve as interim ceo, in addition to his current role as senior vice president of direct brands services at Claiborne. Fitzgerald joined Claiborne a year ago from Burlington Coat Factory, where he was executive vice president and chief financial officer. Former Mexx ceo Jeff Fardell is moving to senior vice president and managing director of market development for Claiborne, where he will focus on market development, including emerging markets. On the product end, John Moore will join the firm as consulting vice president for creative. Moore hails from Mossimo Inc., where he was vice president and creative director of the Modern Amusement brand. Prior to joining Mossimo, Moore was senior director of global concept at Abercrombie & Fitch, where he creat- ed Hollister. Moore will start to influence Mexx’s product for fall 2009 and fully put a stamp of “fun” and “passion” on the brand by spring 2010, according to Claiborne ceo William L. McComb. Moore replaces Red Godfrey, Mexx vice president of product and marketing since January 2007, who is leaving the company. Godfrey had been at Nike Inc. before Mexx. Moore reports to Fitzgerald, who reports to McComb. The new team’s to-do list includes improving product, strengthening retail operations and making the retail and wholesale presentations more consistent. “There was a long list of things to do — this is not a new list, we just need to get there faster,” said McComb. “I’ve been dropping bread crumbs that more changes are coming.” Claiborne already has revealed that it is considering changing the Amsterdam-based firm’s sourcing, after Mexx’s longer-than-expected European turnaround played a large role in Claiborne’s $23.2 million second-quarter loss. Those plans, which sources said could end with a deal with Li & Fung, should be completed in the next month. Sources also have speculated that Claiborne might sell the retailer. These changes do not affect Mexx Canada, a separate operating division of Claiborne that is performing much better. WWDTUESDAY Ready-to-Wear/Textiles FASHION Fashion Week continued with spring collec6 Paris tions from Maison Martin Margiela, Christian Dior and others. GENERAL stocks posted record declines after the 1 Retail House voted down a $700 billion Wall Street bailout package. to a majority investment by PPR-owned 3 Thanks Puma AG, Hussein Chalayan hopes to broaden his business to a wider range of customers. 4 EYE: Getting up to speed with the fresh-faced starlets of two new TV series, Fox’s “Fringe” and the CW’s “Privileged.” president and ceo Isabelle Guichot is 11 Balenciaga steering the rapid growth of the firm as it shifts to a more retail-driven business model. Designers shopping Première Vision 12 TEXTILES: played it safe with orders as they dealt with the financial crisis and a transit strike. RTW: Madison Avenue retailers are bracing for 16 highly uncertain times and are struggling to woo shoppers this fall selling season. Maison Martin Margiela TEEN RETAILER DELIA’S HAS INKED A DEAL to sell its CCS brand to Foot Locker Inc. for $102 million in cash. CCS is a direct-to-consumer retailer that sells skateboards and related apparel, footwear and accessories through catalogues and the Internet. Annual revenues are expected to exceed $80 million, said Foot Locker on Monday. “The impending purchase of CCS is in line with one of our strategic priorities — pursuing the acquisition of athletic footwear and apparel retailers that are compatible with our existing portfolio of businesses,” stated Matthew Serra, chairman and chief executive officer of Foot Locker Inc. The acquisition should afford Foot Locker synergies with its existing Footlocker.com/ Eastbay operation. The deal is expected to close within the next 60 days, and is subject to certain closing adjustments and review under the Hart-Scott-Rodino Antitrust Improvements Act. “This was an opportunity for Delia’s to strengthen their balance sheet,” said Gilbert Harrison, chairman of Financo Inc., which advised the teen retailer. “In this crazy period of time, it is more important to allow them to focus on the growth of their core Delia’s and Alloy brands. “The customer is one that Foot Locker has always targeted and totally fits in with Foot Locker’s and Matt Serra’s ideal of focusing on growing areas of the footwear marketplace,” he added. In connection with the sale, Delia’s entered into separate agreements with Alloy Inc. to acquire from Alloy certain intellectual property assets used specifically in the CCS business that will be transferred to Foot Locker at closing. Alloy previously owned the Delia’s, Alloy, and CCS brands until the spin-off of Delia’s in December 2005. Robert Bernard, ceo of Delia’s, said the company will “continue to prudently manage our business and carefully allocate our capital so that we may best position our company for long-term, sustainable growth.… In the coming months, we plan to fine-tune our long-term business strategy and expansion plans as we evaluate the level of our progress in our Delia’s brand initiatives, the strength of and outlook for overall consumer demand, and the real estate opportunities available to us in this market.” NexCen Sells Waverly Brands to Iconix ONE DOWN, ONE TO GO. With the agreement to sell its Waverly Brands home furnishings operation to Iconix Brand Group Inc. for $26 million in cash, plus the assumption of future liabilities, cash-strapped NexCen Brands Inc. is left to find a buyer for its Bill Blass business to complete the planned divestiture of the non-franchise businesses. The Waverly deal is expected to close within 30 days. NexCen said it will use the proceeds to pay off the $21.3 million in outstanding debt of Waverly and the balance, after deducting transaction costs, to pay down debt associated with NexCen’s Bill Blass business. For Iconix, Waverly presents synergies with its Pillowtex operation, which the licensing and brand management firm bought in 2007 for $231 million in cash and up to $15 million in contingency payments. Iconix is projecting $7 million in royalty payments from the Waverly business over the next 12 months. NexCen bought Waverly for $36.5 million in May 2007. Neil Cole, chairman, president and chief executive officer of Iconix, told WWD his firm will “continue to be opportunistic in this environment” as it searches for more iconic brands, whether fashion or home, to add to its portfolio. The difficult economy could aid the search. “There’ll be more opportunities as the environment gets tougher,” he said. Waverly, Iconix’s fifth home brand, gives the firm a foothold in new categories, such as paint. Kenneth Hall, ceo of NexCen, said the Waverly sale “is just another confirmation to our lender that the company is continuing to execute under our revised strategic business plan.” As for the Blass brand, Hall said the company has received interest from multiple parties, all of whom are in the process of completing due diligence on the business. He noted that, as with Waverly, the buyer would presumably acquire Blass without assuming any existing Blass debt. While no specific time frame has been set, Hall said that the “hope is to have this closed in the near term.” As reported, at least one international bidder and the investment firm Angelo Gordon are believed to be eyeing Blass. One banking source familiar with the process said that not all who have peeked at the Blass books are interested in the couture line. According to an industry source, however, other potential bidders, including Angelo Gordon, could be weighing a bid that does include the couture operation. WWD first reported that Waverly and Blass would be put up for sale, and probably sold in that order, in May after NexCen said it had failed to disclose that $30 million of $70 million borrowed to acquire Great American Cookies needed to be paid down on Oct. 17. In August, the company said Robert D’Loren had resigned as ceo and that it had restructured its bank facility with BTMU Capital Corp. — V.M.Y. TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 196, NO. 69. 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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 these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. DAILY It’s a difficult business QUOTE “ environment across the board, all the way from luxury to mass. I don’t see any bright spots. This is the most difficult environment I have ever seen. ” — Neil Cole, chairman, chief executive officer and president of Iconix Brand Group Inc. Page one. TODAY ON MOST VIEWED WWD • Vuitton’s New Bond... .COM Christian Dior • Featured images from the Paris collections • Up-to-the-minute coverage of Paris Fashion Week, with reviews and Fashion Scoops • WWDTrend: One-shouldered dresses • Daily stock prices PHOTO BY DOMINIQUE MAITRE By Vicki M. Young Classified Advertisements.................................................................................................19 ▼ Foot Locker Buys CCS Brand From Delia’s Madonna in Paris... High-Powered Trio... • Off to Resort... Skip the Packing Peanuts... Calvin’s View... • Who’s That Girl?... IP-Whoa... Not the Only One... • Going Tall at Roberto Cavalli... Rihanna at Gucci • Emmy’s After Hours MOST E-MAILED • L&T Said Tapping Brendan Hoffman as CEO • Neiman Marcus Sees Higher Loss • Gap Buys Athleta Chain • Gottschalks Gets $30M Investment • Bloomingdale’s in Middle East Deal WWD, TUESDAY, SEPTEMBER 30, 2008 3 WWD.COM Adam Lippes Shuffles Into Buffalo Hussein Chalayan By Julee Kaplan ADAM LIPPES IS POPPING UP IN BUFFALO, N.Y. The contemporary sportswear designer will open his first pop-up store in his hometown of Buffalo on Oct. 10. Located at 5454 Main Street, the 4,000-square-foot space will house the entire Adam collection for women and men. The store, which will close just after the New Year, will also be one of the first places where shoppers can find the designer’s modern basics collection, consisting of tissue-thin jersey T-shirts, viscose and cashmere hooded wrap tops, draped open-neck jersey dresses, viscose waffle-knit long-sleeve crewneck tops and ponte knit leggings. “I have always been fascinated by the idea of a pop-up store in an outer market,” Lippes said. “I particularly love Buffalo, since it is where I grew up and spent my formative years.” The opening of this pop-up shop will bring Lippes’ overall sales expectations to $15 million by the end of the year. The Adam brand is available in over 250 stores in 10 countries including Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Intermix in the U.S., as well as Joyce in Hong Kong, Garderobe in Russia, Olive in Indonesia, shopbop.com, shopadam.com and his own freestanding flagship in Manhattan’s Meatpacking District. The Adam collection retails from $40 for a T-shirt to about $1,000 for a coat or highly detailed dress. Hussein Chalayan Hits the Mainstream By Samantha Conti Blahnik Honored by Walk of Style LONDON — It’s Hussein Chalayan’s Hollywood By Marcy Medina BEVERLY HILLS — Manolo Blahnik got star treatment here. Hundreds of fans gathered on the cobblestoned Via Rodeo, off Rodeo Drive, on Thursday night when the shoe designer was honored as the 12th recipient of Beverly Hills’ Walk of Style Award. “This is a city of dreams, and it’s wonderful to see that luxury still exists here,” said Blahnik, who stressed that he owes a great deal to legendary Hollywood costume designers such as Gilbert Adrian, Walter Plunkett and Travis Banton. “It’s those boys, not me, who should be receiving such an award. If not for them, who would have created the looks for Bette Davis and Joan Crawford that inspire us all?” Via Rodeo was decked out to resemble Marie Antoinette’s boudoir — Blahnik designed the shoes for the Sofia Coppola film — with tufted sofas and pastel macaroons. Blahnik ascended to the balcony of the Versace boutique to accept his plaque, which will have a permanent spot on Rodeo Drive. Blahnik, who described himself as “terKathy rified of crowds” was introduced by China and Nicky Chow, daughter of his late friend Tina Hilton. Chow, and actress Lucy Liu. “I love how much he loves women and the elegance and sophistication he brings to everything he does,” Liu said. Hilary Duff, Nicky Hilton and actress Jennifer Coolidge were among those who attended the ceremony and cocktail party. “The first pair of high heels I ever bought were Manolos,” said Duff, recalling the mustard yellow pumps she bought at age 14. “I remember they were so expensive and they made me feel so grown-up. ” Referring to the current economic turmoil, Blahnik said: “These times are uncertain. I never got into this business to make money, but I hope that women will still want to invest in beautiful shoes, even if they buy less.” Lucy Liu, Manolo Blahnik and January Jones. WALK OF STYLE PHOTOS BY DONATO SARDELLA Hilary Duff moment. The designer, whose love of experimentation — from dresses that double as chairs to long knits with built-in walking sticks — means he’s often dismissed as niche, is aiming for a bigger profile. Thanks to a majority investment earlier this year by sportswear brand Puma AG, which is in turn controlled by the luxury conglomerate PPR, Chalayan hopes to broaden his business and appeal to a wider range of customers. In addition, as Puma’s new creative director, he’s been giving the brand’s lifestyle collections a shot of fashion sensibility. “There has always been this misconception of my brand as avant-garde, but I have always made wearable clothes,” said the 38-year-old Chalayan, a native of Nicosia, Cyprus. “I feel like a specialist actor, appreciated by the theater, who can now work in Hollywood. And why shouldn’t a design house like mine be more accessible?” Chalayan and his recently named chief executive Giorgio Belloli, formerly of Prada Group, said the initial strategy is to increase wholesale distribution, develop accessories and explore collaborations, co-branding and licenses. The two are working on relaunching the firm’s Web site and restart the men’s wear business, which last sold two years ago. Eventually, the two plan to begin opening stand-alone stores. The first concept corner — and a harbinger of what those stores might look like — is located at London’s Dover Street Market. Chalayan’s space has a spare, organic feel with clothing suspended from ropes slung between what appear to be tree trunks. Belloli said the company expects to break even in five years time. “We’re starting from zero, re-approaching the market and building new relationships with wholesalers. Our first aim is to create a visible and credible main line,” said Belloli, who joined the company in May. Belloli said the distribution strategy in the past had not been clear, and the brand never really forged relationships with the big American department stores, such as Neiman Marcus, Saks Fifth Avenue and Bergdorf Goodman. Until the Puma deal, Chalayan’s diffusion collection was produced by Italian manufacturer Gibò Co. SpA, which also makes lines for designers including Paul Smith, Michael Kors and John Galliano. “There is so much potential in the U.S. market — it’s the one we’re looking at closely right now,” said Belloli, who worked in the U.S. for the Prada and Helmut Lang labels. Chalayan’s collection currently sells at stores including Barneys New York and at Blake and Ikram in Chicago. Earlier this year, the label unveiled its first pre-collection — for spring — which will hit shop floors later this year, and a footwear line. An accessories collection is in the pipeline and will bow for spring 2010. Chalayan said both the footwear and accessories collections would benefit from the research he does for his ready-to-wear. “I want to create a new point of view with these collections, employing technology that wouldn’t normally be used to make shoes or bags,” he said. “Over the past 14 years, I’ve looked at everything from aircraft design to conductive fibers. I want to see where we can take all that research. But no, you won’t be able to put on my shoes and fly — I do live in the real world.” Chalayan said he’s excited, too, about his access to the PPR and Gucci Group infrastructure. “It was the real reason I did the deal with Puma — to tap into the know-how, logistics, operations and manufacturing of Gucci,” he said, adding he was relying on Gucci’s customer service and delivery operations. Chalayan’s collection will be made at the Gucci factories in Novara, Italy, which also produce for the other brands in the stable. Logistics and distribution will be overseen by the Gucci Group plant in Ticino, Switzerland. The other half of Chalayan’s working life is spent on the Puma sports lifestyle collections; his Puma team is even based at his East London studio. Chalayan is not working on one particular collection, but rather ad- Hussein Chalayan looks. vising Puma generally on its various lines. “It’s more about adding a design content to what they’re already doing — making it a bit more fashion-conscious in clothing and other areas,” he said. “Until now, they’ve been very trainer-focused.” The initial impact of his work, Chalayan said, won’t be seen until early 2010. “Working there has opened up a whole other world to me, with regard to technology, ergonomics and Puma’s approach to urban living.” Chalayan said that after years of struggle in order to keep his company afloat — thanks to consultancies in the past with Tse Cashmere and Asprey, as well as the Gibò manufacturing deal — and coming back from voluntary liquidation in 2001, he’s relieved to have a new partner and his first ceo. “Giorgio has taken the pressure off me, he is heaven sent,” said Chalayan. But in many ways, the pressure has just been turned up a notch. “I think it’s a big challenge to develop your own identity. It’s your name and you’re on your own. There is no history behind you, no bigger label that you are working for,” he said. “Before, I had no life. Now, I have no life. I’ve always been very busy,” he said. “But the more pressure, the more exciting things are — and that’s a big motivator.” 4 WWD, TUESDAY, SEPTEMBER 30, 2008 WWD.COM NAME: Anna Torv AGE: 30 CATCH HER IN: “Fringe,” the latest installment from “Lost” creator J.J. Abrams. Torv appears alongside Joshua Jackson as Olivia Dunham, an FBI agent investigating the mysterious dealings of a global research corporation, called Massive Dynamic. PROVENANCE: Melbourne, Australia EDUCATION: Australia’s prestigious National Institute of Dramatic Arts. PREVIOUS CREDITS: Steven Spielberg’s World War II HBO miniseries “The Pacific,” BBC prime-time drama “Mistresses” and a string of roles Down Under in what Torv calls “one hour-dramas about people who live in apartment buildings.” FAME GAME: Until 1998, Rupert Murdoch was married to Torv’s estranged aunt, also named Anna Torv, with whom he had three children, Elisabeth, James and Lachlan. “FRINGE” BENEFITS: “Sometimes it’s creepy,” says Torv of the sci-fi show’s special effects-filled sets. “You walk in and go, ‘Oh God, that poor person is lying in goo and has that pole sticking out of his head.’” STYLE FILE: “In Australia, you can get away with murder. You can wear a towel to the grocery store,” says the actress, who relocated to New York in July to film “Fringe.” Torv has adjusted to her new surroundings by stocking up on “clean and simple” separates from labels such as The Row. NAME: JoAnna Garcia AGE: 29 CATCH HER IN: The CW’s “Privileged,” Palm Beach’s answer to “Gossip Girl.” Garcia plays Megan Smith, an aspiring journalist who settles for a job as a live-in tutor to a pair of spoiled teens. (Debi Mazar and Anne Archer also appear.) PROVENANCE: Tampa, Fla. EDUCATION: A year at Florida State University, where she was a psychology major. PREVIOUS CREDITS: A regular on Nineties Nickelodeon horror show “Are You Afraid of the Dark?” and back-to-back star turns as a bubbleheaded cheerleader: first on the Judd Apatow series “Freaks and Geeks” and, most recently, as Reba McEntire’s daughter on the country singer’s sitcom “Reba.” “I actually never did cheerleading in high school,” says the former homecoming queen. “I guess I seem like I’d be good at it.” FAME GAME: Garcia is engaged to William Rast co-founder and Justin Timberlake sidekick Trace Ayala, though the actress’ current small-screen gig has forced her to put wedding plans on hold. “I can’t even remember my own name right now,” she says. STYLE FILE: Don’t look for a Garciadesigned pair of William Rast jeans anytime soon. “If anything, they help me [get dressed],” says the starlet of Timberlake and Ayala, whose denim she likes to pair with labels such as Chloé. ANIMAL HOUSE: Garcia owns 11 pets, including a miniature horse. THE DIVA WEARS MACKIE SAY THE NAME BOB MACKIE AND MOST PEOPLE THINK OF CHER. But Tina Turner also has a 30-plus-year relationship with the bedazzler to the stars. “No one does stage dressing the way Bob does. No one,” says Turner, who enlisted Mackie to whip up looks for her 2008 world tour, which opens in Kansas City on Wednesday. “The first time I saw her,” recalls Mackie of meeting Turner in the mid-Seventies, “she had on a beautiful man-tailored silk blouse, gabardine pants and alligator loafers. So opposite to anything that we thought of as Tina Turner at the time.” Nor did it really scream Bob Mackie. Thankfully, designer and singer saw eye to eye — or perhaps sequin to sequin — when Mackie was enlisted to outfit the star for her appearances on “The Sonny and Cher Show.” Tina Turner wears Bob Mackie for a show in Las Vegas, 1977. Now, more than three decades later, Turner, 68, says she’s “leaning a bit more towards a rock-influenced look.” To that end, Mackie has been looking back at the thigh-grazing dresses, beaded tops and shiny stretch pants he created for Turner’s solo club act in the late Seventies. His new designs include the requisite “Proud Mary” minidresses, as well as a postapocalyptic look inspired by Turner’s role in 1985’s “Mad Max Beyond Thunderdome” and a vixen getup à la “GoldenEye,” the 1995 James Bond film for which she wrote the theme song. And, though he’s working in a mostly neutral palette (“Because there’s so much there, you wouldn’t want to [use a lot of color],” he notes), Mackie’s going full throttle with the details, including plenty of lacing, fringe, studs and jewels. “The only restriction I’ve given him is that I must be able to move easily,” Turner says. “If I have to concern myself with a dress sleeve or a sequin or things coming out that shouldn’t — that’s a problem.” “No one does stage dressing the way Bob does. No one.” — Tina Turner Factor in the wear and tear each piece endures in a single show — let alone a seven-month tour — and Mackie’s challenge becomes clear. “They may look like something that she could wear to a party,” the designer says of the eight looks he’s creating, “but these are work clothes. You have to make them like iron, but look like they’re made out of butterfly wings.” Despite having just wrapped work on Cher’s Caesars Palace extravaganza, Mackie, 68, had no reservations about taking on another high-profile project. In fact, the designer says he couldn’t wait to reunite with the ever-energetic Turner, who credits her physique to a daily swimming and hiking regimen and “at least eight hours of sleep” each night. But as far as Mackie is concerned, there’s just something about Tina. “When I walked into her beautiful home in Zurich,” says the designer, remembering his recent trip to the singer’s Switzerland estate, “she had on a pair of Indonesian pants and a sarong tied around a strapless top — and there she was out in this huge, beautiful yard of grass and trees, and she’s telling the gardener what to do and where to do it and she’s running up and down the hills. She has such enthusiasm about life.” — Nick Axelrod A Mackie look for Turner’s upcoming tour. TORV PHOTO BY THOMAS IANNACCONE; GARCIA BY JEFF VESPA/WIREIMAGE; TURNER BY TONY KORODY/CORBIS T.V. Guide The fashion flock typically gets a late start when it comes to fall television, what with spring collections and the onslaught of autumn galas. But those who want to spend tonight on the couch need not be daunted. Here, WWD helps viewers get up to speed with the fresh-faced starlets of two new Tuesday night series, Fox’s “Fringe” and the CW’s “Privileged.” — Amanda FitzSimons WWD, TUESDAY, SEPTEMBER 30, 2008 5 WWD.COM Financial Stocks Plummet on Bailout Blowoff could spur some deal-making in fashion. Continued from page one 6.4 and 5.9 percent, respectively, were “Values are just going to be coming back registered earlier this month as inves- a little bit down to earth,” Aronsson said. tors rode roller-coaster markets driven “This is a good time for equity deals.” But as strategic acquirers prowl for by bank failures, government takeovers deals, shoppers, even at the higher end and a severe lack of credit. The 777.68 point drop in the Dow of the business, are seen tightening up. “It definitely will impact the spending Jones Industrial Average, to 10,365.45, was the single biggest point decline on re- habits of an aspirational consumer, and cord, nearly 100 points worse than when by that I mean someone who will buy at the markets opened on Sept. 17, 2001, fol- an opening price point of a luxury brand lowing the 9/11 terrorist attacks. The 7 to be in it,” said Aronsson, who before his percent decline in the Dow was the 17th deal-making days was ceo of both Donna Karan International and Marc Jacobs. worst on record in percentage terms. “Prior to the latest crisis, the cheap The continuation of the crisis will only add to the anxiety of shoppers, who are dollar has been helpful to maintain if not increase sales of many of the already battling a host of brands, at least on the two economic woes. coasts,” Aronsson said. “As “It will make it more the banking and credit crisis difficult for the consumer spreads around the world, to have any confidence in continued performance will the government because be dependant on something of the lack of leadership,” more than a cheap dollar.” retail consultant Walter The ceo of one major Loeb said. importer, who spoke on the And the news, even condition of anonymity, said with the defeat of the bank COMPOSITE retailers were cutting back bailout, just keeps getting 942.40 on purchases, with some worse as consolidation chains carrying a large inroils on in the banking ventory overhang. sector. On Monday, it was All this also spells trouble the government-backed for suppliers, who are alsale of Wachovia Corp. ready dealing with rising raw to Citigroup which folmaterial and labor costs. lowed last week’s collapse The ceo said a profit of Washington Mutual, margin squeeze would come marking the largest bank from “cost inflation that failure ever. This month -51.19 could not be passed through the government has also as price increases, which taken over mortgage giants means either improve proFreddie Mac and Fannie ductivity or perish.” Mae, as well as insurance The painful trading day left a number giant American International Group. Investment house Lehman Brothers was of retail stocks with double-digit losses, among them Eddie Bauer Holdings Inc., allowed to fail. Still, the fallout could ultimately pro- down 17.2 percent to $5.30; Casual Male Retail Group Inc., down 14.9 percent to vide some opportunity for investors. “You have to let the fury of the current $3.60; Dillard’s Inc., down 12.8 percent to day go past and in the next few days, peo- $11.20; Macy’s Inc., down 10.9 percent to ple will realize neither industrial nor any $17.28; Rite Aid Corp., down 11 percent commercial companies have really failed to 81 cents; American Eagle Outfitters as a result of this,” Loeb said. “There is Inc., down 10.4 percent to $14.25, and The still a lot of potential in these industries. Children’s Place Retail Stores Inc., down The market will go up and recover some 10 percent to $33.04. Falling just shy of the 10-percent deof the lost ground.” But the commotion in Washington is ul- cline mark were Coldwater Creek Inc., timately expected to weigh on the consum- down 9.9 percent to $5.45; American er, who already has been laid low by high Apparel Inc., down 9.3 percent to $7.80; Saks Inc., down 8.6 percent to $8.48; fuel costs and a worsening job outlook. In August, personal income rose $61.5 Retail Ventures Inc., also down 8.6 perbillion, or 0.5 percent, as disposable per- cent to $3.81; Stein Mart Inc., down 8.5 sonal income fell $93.3 billion, or 0.9 per- percent to $3.64, and Abercrombie & cent, according to a monthly Commerce Fitch Co., down 8 percent to $35.74. Target Corp. was also down 8 percent, Department report issued Monday. Personal consumption expenditures increased $3.9 finishing at $47.35, while rival Wal-Mart Stores Inc. dropped 3.7 percent to $58.45. billion, or less than 0.1 percent. Emerging from the storm with gains for The Conference Board is set to release its latest reading on consumer con- the day were Delia’s Inc., which jumped 17.2 percent to $2.93 after agreeing to sell fidence today. “It’s a difficult business environment its CCS skateboard unit to Foot Locker across the board, all the way from luxury Inc., and Gottschalks Inc., up 8.6 percent to mass,” Neil Cole, chairman, chief ex- to $1.52 as investors continued to give the ecutive officer and president of Iconix thumbs-up to its $30 million cash infusion Brand Group Inc., said. “I don’t see any from Everbright Development. Another bright spots. This is the most difficult en- regional department store, The Bon-Ton Stores Inc., was up 7.3 percent to $3.17. vironment I have ever seen.” In Tokyo, where markets open first and Despite holding out hope the presidential election will help boost confidence for investors often set the tone for traders the holidays, Cole’s outlook for consumer in Europe and then the U.S., the Nikkei 225 fell 1.3 percent, or 149.55 points, to spending is decidedly less than optimistic. “I don’t think there’s a chance until 11,743.61. Stocks on the downtrend inthe second half of next year for a pickup cluded Link Theory Holdings Co. Ltd. (5.3 as retailers are now planning their inven- percent), apparel maker and marketer tory conservatively,” he said. “I think it Onward Holdings Co. Ltd. (2.2 percent) and Mitsubishi Rayon Co. Ltd. (4.8 percent). will be a difficult spring.” By the time the London Stock Exchange Business forecasting, always an inexact science at best, has been made all the hard- closed, the outlook had worsened and er by the persistent credit problems and the FTSE 100 fell 5.3 percent, or 269.70 points, to 4,818.77. Among the decliners the sometimes inelegant rush to fix them. “The fires are still raging and the were Burberry Group plc, down 7 percent smoke is yet to clear to really know what to 378.25 pence, and Marks and Spencer the damage is,” said Jeffry Aronsson, who Group plc, off 5.8 percent, to 208.25 pence. With the presidential and congrescofounded Aronsson Group. The depressed markets have the poten- sional elections just five weeks away tial to both give and take. For instance, they and mounting opposition from their con- WWD INDEX stituents back home, rank-and-file members from both major political parties defied House leaders and defeated the bill. Republican lawmakers criticized the package for putting taxpayers at unnecessary risk and violating free-market principles, and 133 Republicans joined 95 Democrats to defeat the measure. House leaders huddled behind closed doors after the measure failed and it remained unclear whether they would try to proceed with a new bill. The vote effectively killed the bill and leaders would have to go back to the drawing board, craft another bill and hold a new vote in order to advance a package. The House is set to reconvene on Thursday following the Rosh Hashanah holiday rather than adjourning for the year as was originally planned. Praising the 60 percent of Democrats in her caucus who voted for the bill, House Speaker Nancy Pelosi said: “This is the President’s proposal, acted upon in a bipartisan way, improved upon in a bipartisan manner. The legislation has failed. The crisis has not gone away. We must work in a bipartisan way in order to have another bite at the apple in terms of some legislation.” Pelosi told reporters she had spoken with Treasury Secretary Henry Paulson Jr. after the vote and that the “lines of communication remain open” with the Bush administration and Republicans. She did not provide any details about whether leaders would try to hold a new vote on a repackaged bill in the near future. “What happened today cannot stand,” Pelosi added. “We must move forward and I hope that the markets will take that message.” “Our tool kit is substantial but insufficient,” said Paulson. “Therefore, I will continue to work with Congressional leaders to find a way forward to pass a comprehensive plan to stabilize our financial system and protect the American people by limiting the prospects of further deterioration in our economy. We’ve got much work to do. This is much too important to simply let fail.” — With contributions from Vicki M. Young, Kristi Ellis, Liza Casabona and Arnold J. Karr 10 BEST PERFORMERS DAILY COMPANIES P/E VOLUME AMT HIGH LOW 3.50 1.58 Delia’s (DLIA) - 867489 1.54 1.32 Gottschalks (GOT) - 38569 1.52 +8.57 3.80 2.85 Bon-Ton (BONT) - 298048 3.17 +7.28 LAST %CHANGE 2.93 +17.20 115.00 106.99 Hermès * (RMS:PA) 42.1 7.03 6.70 Orchids Paper (TIS) 12.0 586813 114.00 1020 6.74 +3.69 +4.64 3.00 2.76 Tandy Leather Factory (TLF) 12.1 300 3.00 +3.45 10.85 9.00 Finish Line (FINL) - 2932533 9.82 +3.26 15.46 13.90 Syms (SYMS) 338.0 10548 13.90 +2.81 66.50 64.25 French Connection * (FCCN:L) 209.3 165504 65.50 +0.77 35.00 29.00 Weyco (WEYS) 18.0 14248 33.96 +0.41 P/E VOLUME 10 WORST PERFORMERS DAILY COMPANIES AMT HIGH LOW 5.28 2.38 Tandy Brands (TBAC) - 2989 3.80 -28.16 5.06 4.75 Jaclyn (JCLY) - 14996 4.75 -20.17 33.53 27.60 Developers Diversified (DDR) 31.8 6.44 5.05 16.92 13.87 General Growth (GGP) 4.24 3.50 Casual Male (CMRG) - 181200 3.60 -14.89 12.95 10.57 Dillard’s (DDS) - 1761934 11.20 -12.77 17.00 14.86 IAC Interactive (IACI) - 3296124 14.86 -12.59 LAST %CHANGE Eddie Bauer (EBHI) 1700801 27.60 -17.37 - 584417 5.30 -17.19 71.0 5214511 14.21 -16.66 0.33 0.25 NexCen (NEXC) - 305369 0.29 -10.94 19.15 16.72 Macy’s Inc. (M) 11.0 10827668 17.28 -10.93 * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. 6 WWD, TUESDAY, SEPTEMBER 30, 2008 The Party Lines Let’s celebrate. That seemed to be the message of two disparate collections: Christian Dior, where John Galliano went for fun, look-at-me clothes, and Maison Martin Margiela, as the designer marked 20 years in business with plenty of witty ideas. Christian Dior: “Tribal Chic,” proclaimed the program notes for John Galliano’s spring show for Christian Dior. Once upon a time, that might have meant an overthe-top costume affair, the kind to delight Galliano’s countless devotees who reveled in such glorious mayhem and infuriate those who didn’t. But not this season. Instead, Galliano took a decidedly subdued approach to the so-up-his-alley motif. “It’s a sideward glance, an abstraction of Africa,” he said before his show. “It’s never, never literal.” Certainly not. In fact, the tribe whose chic he seemed most interested in is that of the tony types used to forking over ample wampum for fabulous flash-andfashion, but who these days may be feeling cautious, and who could blame them? Now they need a reason to buy, which means goodbye to fall’s tailored Mrs. Robinson retro; they’ve got plenty. These gals want a new spin on fun, beautiful look-at-me clothes, without spinning out of control. Galliano’s solution: dresses, an explosion of them, with lean, waist-cinching bodices and short, flippy skirts. He showed them mostly in happy brights or “fingerpainted” animal spots, with lots of workable transparency. And they looked appealing, whether reasonably unfettered, as in strapless and halter prints, or embroidered, jeweled and studded in articulated patterns that apparently accounted for those tribal glances. (Inventive shoes with full-figured goddess heels did so more directly.) Ditto the gowns, which Galliano kept in the same feeling, only long. Yet for all the prettiness, the collection had issues. Most quizzically, it formed an unlikely intersection between the safe and the impractical, with some looks wafting toward contemporary. Lucky, then, that Galliano set the record straight with a few ingeniously constructed jackets in leather and python. Christian Dior Christian Dior PHOTOS BY DELPHINE ACHARD, GIOVANNI GIANNONI AND DOMINIQUE MAITRE spring ’09 Christian Dior Christian Dior ▲ PARIS ▲ Christian Dior WWD, TUESDAY, SEPTEMBER 30, 2008 7 WWD.COM Maison Martin Margiela FASHION SCOOPS THE WHITE STUFF: Renzo Rosso slipped into the Maison Martin Margiela show Monday night and denied published reports that the Belgian designer would be hanging up his duct tape, scissors and white paint. “It’s not true. It’s a rumor the press wants to create. It’s been six years people have been talking about this,” said the Italian industrialist, who acquired Margiela in 2002. “We’re working very well together. He inspires me so much.” DIESEL’S DENIM FRENZY: Speaking of Renzo Rosso, his Diesel brand will kick off its 30th birthday celebration on the morning of Oct. 10 by offering die-hard denim aficionados a limited edition pair of jeans for only $50. Diesel is manufacturing only 20,000 of its “Dirty Thirty” jeans, 8,000 of which will be available in select Diesel stores in the U.S. for one day only. The jeans will feature a back patch with the “xXx” logo, the dates 1978-2008 embroidered on the side and customized buttons reading “Diesel 1978.” Diesel also has added to the entertainment lineup for the finale of the brand’s 24-hour global birthday party the following night at Brooklyn’s Pier 3. Chaka Khan and Joel and Benji Madden will be performing, along with N.E.R.D, M.I.A. and Hot Chip. More performers are expected to be added. Diesel will offer a limited edition pair of jeans. PROTOTYPE: Why go beyond the original design mock-up? That was the philosophy behind Yohji Yamamoto’s debut men’s and women’s sunglasses line, Prototype, made in association with Linda Farrow. The collection, featuring purist, work-in-progress-style functional forms and industrial details, was introduced in the house’s show on Monday. A rendering of the new Prototype sunglasses line by Yohji Yamamoto in Sophisticated elements include clip-on titanium and aluminum association with Linda Farrow. colored lenses — in hues such as smoky brown, white and graduated blue and green — that provide contrasting layers of color. Chrome-coated frames come in a range of finishes such as white, black and brown. Prices have not yet been released for the line, which will be distributed to select retailers and Yohji Yamamoto, Y’s or Linda Farrow Gallery stores. REVIVAL CHEZ REGINE: André, the Parisian after-dark baron, has acquired the keys to one of the city’s most mythical clubs, Chez Régine, whose dance floor once welcomed the likes of Serge Gainsbourg and Jane Birkin, Liza Minnelli and Jackie Kennedy Onassis. “We’ve still kept the disco, funky Seventies vibe. It’s still very Madame Régine, but we plan to also add a bit of rock ’n’ roll,” said André, adding that the venue, which reopens this week, will host parties for the likes of Givenchy, Sebastien Tellier and Colette. “It now has the best sound system in the city,” he said. EYE EYE: Delfina Delettrez has applied her unique gems to a new line of sunglasses, made in collaboration with luxury French eyewear brand Alain Mikli. The collection will be unveiled today at Paris’ Grand Véfour restaurant. “They’re kind of like sunglasses with earrings,” said Delettrez of the four styles that feature silver ear chains and silver and enamel jewelry charms from the designer’s signature skull and animal themes. Maison Martin Margiela Maison Martin Margiela Maison Martin Margiela: He insists otherwise, but if the rumors turn out to be true and the 20th anniversary collection that Martin Margiela showed on Monday night was his last, the invisible man left his disciples with enough enigmatic nostalgia to keep them entertained for another 20 years. Whether it was his final word or not, the show was a retrospective of sorts. Indeed, Margiela worked one of his conceits — recycled material — here, all his own. He started at the very beginning — that iconic white lab coat that doubles as house uniform — and led into the first jacket shown in spring 1989. Literally? Please. First, it appeared as a photograph on a silk dress; a plaster-mold version followed. And the concepts just kept on coming. True to Margiela form, this runway had little to wear — although those clothes do exist — but lots of ideas, big and small. Proportion played out in shoulders, from sloping to linebacker, shoes too big and too small, and silhouettes that either swallowed the body or shrunk into it. Also on the hit parade: plastic bags, disco balls, catsuits, Barbie clothes, AIDS T-shirts and the house obsession with anonymity — all of the models were faceless. Instead of exact replicas, Margiela rewrote his own language, and the crowd ate it up with ample applause. It all added to the party atmosphere, and, remember, fun was not always part of Margiela’s repertoire. He has lightened up from the house’s serious intellectual beginnings, and, here, his wicked wit was overt in the clothes and the way he showed them. He poked fun at his own more commercial nature, wheeling some looks out on individually sized stages. One featured a model framed by a jewel box, a spotlight shone directly on a necklace from the fall 2008 debut jewelry collection, while another illuminated the mannequin’s sequined sandaled feet. By the time two killer pairs of legs walked out under a giant silk birthday cake, it felt like, for once, we were in on the joke. NEW HOMME: Lanvin has given its men’s boutique on the Rue du Faubourg Saint-Honoré a makeover to reflect its more modern direction under the guidance of Alber Elbaz and designer Lucas Ossendrijver. Shoppers now enter the ground level to find Ossendrijver’s runway collection, merchandised in a white space on metal racks. Doing away with former dark Views of the revamped Lanvin wood paneling, the shop plays to men’s boutique in Paris. a contemporary gallery mood — with a dose of Paris chic. On the second floor, Ossendrijver’s more sporty looks are on display, while on the third floor is the company’s traditional business suit department. The ultimate experience is reserved for the fourth level: a wood-paneled made-to-measure salon. PHOTOS BY DOMINIQUE MAITRE Maison Martin Margiela RUSSIAN AROUND: Karl Lagerfeld, who had planned to show his next “métiers d’art” collection of luxury ready-to-wear for Chanel in Moscow in December, has opted for Paris instead, as reported. Turns out showing in Russia was logistically too complicated, as it would have required, for one, The Théâtre le Ranelagh. sending the collection three weeks ahead. Nonetheless, Lagerfeld plans to keep the theme for the Paris-Moscow collection on Dec. 3. The venue is the Théâtre le Ranelagh in Paris and “it has the look of an old Russian theater in a way,” the designer said of the 189. He also plans to “show a little movie” to open the show about the famous mademoiselle. Meanwhile, look out for Lagerfeld to introduce a new handbag line on the runway at his signature show on Wednesday — with his own famous face adorning some styles. For more Scoops, see page 10 8 WWD, TUESDAY, SEPTEMBER 30, 2008 Transparency and Texture Undercover: Remember that old Gypsy Rose Lee song, “Let Me Entertain You”? It’s becoming an increasingly on-point chorus for fashion as the business has become about much more than the clothes. So Undercover provocateur Jun Takahashi ditched the usual runway circuit and, taking a fashion-and-art approach, opted for a multimedia installation. Here, he had a very specific story to tell: a supernatural fantasy about llamalike creatures named Graces and their human guardians. Giant moody photographs by Katsuhide Morimoto created the narrative backdrop. As for the collection itself, displayed on mannequins at the center of the exhibition, it was a rather quiet affair for Takahashi: a tight, 21-look lineup of entirely off-white looks, all romantic and feminine, with a soupçon of tech. Case in point: the satin coat with a plastic pocket and outlet on the sleeve for some electronic device. To this, he added a furlike fringe motif on tunic dresses and pants, as well as casual blouses and cardigans spliced from different textured cottons. On a runway, the collection might have looked a bit lackluster, but here, it was delightful. And, in keeping with the fairy-tale theme, the mannequins sported a whimsical accessory on their shoulders: fluffy bejeweled Grace dolls, designed by Takahashi. PARIS White looks laced with surface interest, fur coats inspired by confetti, sheer lace pieces and others with see-through panels were all part of Paris lineups. spring ’09 Revillon: Peter Dundas is hardly a one-season wonder. After winter’s sumptuous ethnicinspired effort, he offered an unexpected blend of soft romanticism and stark futurism that added up to an ultraluxurious collection. “Constructed optimism,” said Dundas of the lineup of minks with diamond or floral decorative patterns worn over dresses of geometric silhouettes à la Courrèges. With a pale palette of pinks and blues, there were plenty of stunners, including a coat of cascading fur circle appliqués that Dundas said was inspired by confetti. Though the designer is on his way to Emilio Pucci, he said he would continue at Revillon, too. That’s good news for fur fans, because the association is proving a great fit. Isabel Marant: A little bit country, a little bit rock ’n’ roll. That was the adorable spring spin Isabel Marant put on her signatures — slouchy pants, quilted minis, henleys and boyish jackets — turned out in flannel plaids and Laura Ashley-esque florals and worn with suede ankle boots wrapped in chains. Marant held steady with her staples, but lest things get sleepy, she energized them with shots of cobalt blue and red, topping it all off with a spoonful of sugar in tiered ruffles and some lovely lace. And it all marched to an Eighties beat — the soundtrack and the styling. The downside: The march was a little too long. Isabel Marant Sharon Wauchob: The idea of lightness was the theme of Sharon Wauchob’s collection. To create that effect, the Irish designer cut gauzy lace and metallic silks into an array of airy dresses. They came pleated in veiled layers or folded in a variety of inventive ways. The effect was often beautiful. Wauchob tempered this ethereal fare with flowing trousers and intricately draped, metallic jackets that show the designer knows it’s important to offer a bit of grounded fare, too. Antonio Berardi: Antonio Berardi is an exacting designer, and his spring collection stayed firmly on course, though this season he curbed his enthusiasm. A run of organdy dresses — either long and lean or brief encounters — came cleanly constructed, slightly A-line in form, breaking into rounded sleeves or sprouting small ruffles at their hems. Lingerie-inspired bobbin lace insets, a nod to the designer’s Sicilian roots, and scorching shades, namely hot pink, red and turquoise, turned up the heat, as did nods to the season’s transparency themes. Revillon Revillon WWD, TUESDAY, SEPTEMBER 30, 2008 9 WWD.COM more from the shows... ▲ Undercover A.F. Vandevorst: Delightful variations on the white shirt, lingerie-inspired ensembles and granny fabrics in Tropicana shades tumbled together in An Vandevorst and Filip Arickx’s playful spring collection, seen in quilted cotton lace slips hitched up with ribbons, floral satin bustiers and wraparound cotton patchwork dresses that added a sweet note. ▲ Cacharel: Mark Eley and Wakako Kishimoto’s first catwalk show for Cacharel focused on retro, young-atheart summer frocks in seagull-print cotton lace and the duo’s signature kawaii prints, but the highlight was a limited edition group of Libertyprint dresses based on Seventies archive designs for the house’s 50th anniversary. Sharon Wauchob Antonio Berardi ▲ Azzaro: Vanessa Seward knows how to cut a very sexy dress, a talent she displayed expertly in her dramatic twotoned frocks decorated with jewelry flourishes or with floral cutout patterns. ▲ Undercover Dice Kayek: Glitzier numbers worked best — a curvaceous jet-beaded take, say, or a twisted metallic mini — at Dice Kayek, but Ece Ege’s strong-shouldered, bulbous confections struggled to bloom. PHOTOS BY THIERRY CHOMEL, GIOVANNI GIANNONI, FRANCOIS GOIZ AND DOMINIQUE MAITRE Isabel Marant 10 WWD, TUESDAY, SEPTEMBER 30, 2008 WWD.COM FASHION SCOOPS Barbara Bush Stephanie Marion Cotillard and Seymour Harvey Weinstein at Dior. Emma Watson and Zoe Saldana PAINTED LADIES: “I love the madness,” shouted Eva Green as she whisked into the Dior show Monday in a gray suit, looking every inch the schoolteacher she plays in her latest movie, “Cracks.” “It’s quite a dangerous story, there’s a lot of taboos. I play a swimming team teacher who seduces a student,” she said. She’s hoping the film, directed by Jordan Scott and set in the Thirties, will make the final selection for Cannes. Lily Allen, who sat painting her nails with silver varnish from the gift set on her seat, said she’d arrived in Paris this weekend to record some tracks with Gonzalez. Oscar-winner Marion Cotillard of “La Vie en Rose” said she’ll be singing again in “Nine,” a new musical comedy set in the Sixties starring Nicole Kidman and Penélope Cruz that starts filming in October. Accompanying her was film mogul Harvey Weinstein, who said he’s “in town to scout for a new Quentin Tarantino movie.” Nearby, President Bush’s daughter Barbara Bush noted she was in town visiting family. Zoe Saldana, meanwhile, has just wrapped “Avatar” alongside Sigourney Weaver, and the remake of “Star Trek” alongside Winona Ryder. Saldana said her outfits, by costume designer Michael Kaplan, were far from geeky. “I wore very short, short, short dresses. It was petrifying,” she described. U.S. pop singer Katy Perry is on a whirlwind tour to promote her first single, and is gearing up to release her second. Emma Watson, aka Harry Potter’s Hermione, could have used some magic to clear a throng of photographers and screaming teens who surged ahead of her coming out of the show. Hobbling toward Place de la Concorde afterward, a monochrome Róisín Murphy, who had road-tested one of Gareth Pugh’s articulated, armorlike frocks for the occasion, confessed she’d had a difficult time sitting at the show. “It’s not very comfortable,” she said. DEAR JOHN: Meanwhile, if John Galliano adores Dior, the feeling is entirely mutual. According to a Paris source, the designer has just inked a “long-term extension” of his design contract as couturier of the storied Paris house. Last year, Galliano clocked a decade at the helm of Dior as the house celebrated its 60th anniversary. What’s more, it is understood that Dior plans to integrate the John Galliano business under its auspices, underlining the continuity of a close partnership. With Galliano at the creative helm, the brand has charted a global retail expansion, planting more than 220 stores around the world, with sales advancing in the Middle East, China and Russia despite an uncertain economic environment. Later this month, Dior will fete its flagship in New Delhi as it also plots major events from Beijing to Moscow. While it was shock treatment at Dior in his early years, Galliano recently has steered the house in a more sophisticated and demure direction, with French First Lady Carla Bruni Sarkozy sporting the new look at official functions in England, Israel and the U.S. Q& A BRUNO PIETERS Today will see the Paris presentation of Bruno Pieters’ second collection for Hugo, the edgy diffusion line of Hugo Boss. A graduate of Antwerp, Belgium’s Royal Academy of Fine Arts, 31-year-old Pieters worked as assistant to Martin Margiela and Christian Lacroix before launching his signature ready-to-wear line in 2002 at age 24. In April 2007, Pieters was appointed art director of Hugo. Sales for the designer’s first collection there, currently in stores, rose 18 percent. WWD: What’s your aim with Hugo? Bruno Pieters: The original idea for Hugo was to create an avant-garde, fashion-forward brand within the Hugo Boss Group. I’m trying to develop a look and codes for them that are recognizable and are theirs by focusing on their strengths, such as tailoring and cut. Hugo is known for suits and it’s an element I love to play with in my designs. WWD: What was your vision for the spring collection? B.P.: I explored all that is interesting in Germany’s culture, John Galliano Mónica Cruz in Mango. Mark Ingram and Oscar de la Renta Tinsley Mortimer at Dior. TANGO IN PARIS: Inés Sastre and Mónica Cruz joined Valentino Garavani and Mango president Isak Andic at the Spanish chain’s new 13,000-square-foot Boulevard Haussmann store Sunday, followed by dinner at the Opera Garnier to launch the 2009 Mango Fashion Awards, judged by Valentino. Cruz, whose fourth Mango collection with sister Penélope comes out in spring, is turning her hand to costume design for her next movie “Jerry Cotton,” which is based on a German comic strip. “They told me I could come with my ideas,” the actress said. “They don’t know what they’ve done.” Sastre, meanwhile, has re-signed at Lancôme, for whom she’s been a spokeswoman for 12 years, to front its Miracle fragrance. While many guests teamed Mango dresses with designer jewelry, Julie Depardieu donned a kooky men’s wear ensemble topped off with a bowler hat, acquired hastily when she realized the “cocktail” dress code. “All the girls are Valentino checking me out,” she said. Spanish actress Goya Toledo said she’s at the looking forward to the premier of “Los Años desnudos” (“The Nude Mango Years”) in which she plays an actress who destroys herself, while French store. actress Linda Hardy is next playing a man-eater in “Marginal Tango” alongside Zoé Félix. Mango, which previewed its spring collection by Belgian designer Sandra Fasoli, winner of its inaugural award, has a host of upcoming collaborations, including apparel with American designer Adam Lippes, a shoe line with Carlos Puig and T-shirts with writer Paulo Coelho. Executives said they would love to recruit Valentino to the Mango team. “No, no, no,” said the man himself when asked if he would consider designing a fast-fashion line. “I am not in that mood anymore,” he said, adding that he has many surprises up his sleeve, including designing for theater, next year. LADIES FIRST: Oscar de la Renta joined Mark Ingram at his East 55th Street bridal atelier Thursday to raise a glass to the staff for being the designer’s top-selling outpost. With security detail for various U.N. dignitaries and Clinton Initiative attendees posted at nearby corners, the conversation couldn’t help but turn to politics and the beyond-anemic economy. “Fashion is not political. I like to dress every lady,” said a diplomatic de la Renta, who, after all, has clad both Hillary Clinton and Laura Bush. “Whoever is elected president, we will have a very attractive first lady.” Until that happens, Bush is keeping up appearances and buzzed by the designer’s showroom Wednesday. Campaigning seems to have kept Cindy McCain away for a spell, but de la Renta has designed some clothes for her. Like Barack Obama and John McCain, de la Renta is also all about bipartisanship. “Who am I going to vote for? I don’t know yet. If Hillary would have been the candidate, I would certainly have voted for her. She is a close friend. But I never vote for a party. I have always voted for a person. Sometimes I’ve made big mistakes, sometimes I have done the right thing.” its history and art scene, since it was a German company originally. This season it was Bauhaus. I wanted the whole collection to look very clean and graphic, with elements of classic men’s tailoring. WWD: You’re holding a party here. Is it a sign you’re opening a store? B.P.: The last two shows were in Berlin. Next January we would love to debut in Paris. I think Paris is unavoidable to create growth. WWD: How has your new position affected work on your own line? B.P.: I consider my own line today as a laboratory. It’s fun to do. WWD: Is taking up design posts at established houses vital to your own brand’s survival? Are you receiving any financial support for your line? B.P.: I’m completely independent for now. One of the reasons I accepted this position is because I love to work on different projects. I also work for Delvaux, a little-known luxury leather goods house in Brussels — actually the oldest in Europe — a great place to learn the trade. Of course, having a contract with Hugo Boss does make life as a designer more comfortable. WWD: You’re based in rainy Antwerp. Do you socialize much with fellow Antwerp designers? B.P.: Antwerp is very small. It’s like a village; everybody knows each other. I enjoy it because it allows me to focus on my work, whereas cities such as Paris have too many distractions. I went to school at the same time as many other designers, such as Kris Van Assche. When I was offered the position at Hugo, Raf Simons was so kind as to advise me on certain things. We all respect each other. We all work hard so there is not much time, at least not for me, to socialize often. WWD: How is it to be a Belgian designer today? B.P.: I think it doesn’t have any importance today. I feel people accept Belgian designers as part of the industry. We are just there, as are London designers or New York designers. What I find is a positive change in fashion is this tendency to focus on the individual, and no longer the nationality. If there are many Belgian designers working for different companies, I think this is because they fit the brand, not because they are Belgian. WWD: Looking back, do you think you jumped into launching your own brand too early? B.P.: Of course it was too early, but I don’t regret it. It was fun, naïve and completely mad but everything that happened was necessary for where I am today. I feel like I have learned a lot and that I can begin my journey. WWD: What are the pros and cons of being a young, independent designer today? B.P.: This reminds me of what Julie Gilhart from Barneys New York told me when I presented my first couture collection: “There will never be enough good designers, always room for more.” Today the interest in new designers is very low. It exists in London. When the press and buyers have a moment of interest in a young talent, the difficulty, then, is the ability to compete with the quality, deliveries, etcetera, of established houses. This was for us a big issue in the past. As a young designer, you are also expected to present something different — extreme — to be noticed. Big companies can afford to show a press collection and a different showroom collection adapted to retailers; this is impossible for an independent designer with no financial partner. They need to show what they sell, which is not always very exciting or innovative. But it’s not all bad — if there is a will, there is a way. This is still very true, and there will never be enough good designers. — Katya Foreman PAINTED LADIES PHOTOS BY STEPHANE FEUGERE; ALLEN, MANGO BY DOMINIQUE MAITRE; GALLIANO BY STEPHANE FEUGERE; DE LA RENTA BY JOHN AQUINO PIETERS BY MATTI HILLIG/CORBIS Lily Allen Eva Green WWD, TUESDAY, SEPTEMBER 30, 2008 11 WWD.COM Guichot Steers a Burgeoning Balenciaga By Miles Socha PARIS — Good luck opening a fashion magazine this fall and not seeing one of Nicolas Ghesquière’s impeccably sculpted black dresses for Balenciaga splashed all over the editorial pages. And better luck getting your hands on one as they arrive in stores this month: There are waiting lists at Balenciaga’s growing network of retail stores, meaning the 300 dresses are unlikely to make it to the racks. “Runway sells, much more than you think,” said Isabelle Guichot, Balenciaga’s president and chief executive officer. “We have numbers that are pretty impressive.… It’s not only a runway show, it’s a reality.” Managing rapid growth of the Paris fashion house as it shifts to a more retaildriven business model has been the chief task of Guichot, a focused but fun-loving executive who tools around Paris in a silver Suzuki SUV. Since assuming the helm of one of Gucci Group’s fastest growing brands last year, Guichot has been quietly orchestrating steady product and boutique expansion. Arriving this fall-winter are new capsule collections for denim and black dresses, the latest complement to lines devoted to knits, silk, pants, T-shirts and leather. And a company that counted only three directly owned locations as of December 2007 — Paris, New York and Milan — is gunning for 20 by the end of this year. These include not only high-profile new flagships in London and Los Angeles, which opened in February and March, but shop-in-shops in department stores like Galeries Lafayette in Paris and Hankyu in Osaka, Japan, which recently christened the world’s first men’s-only Balenciaga corner. Yet the brand has yet to leverage its profile in Asia, one of the world’s fastest growing regions, and to reenter the fragrance business, which has been on hiatus since December. “The sky’s the limit. We’re still at the early stages of the brand development,” Guichot said in an exclusive interview, her first since joining Balenciaga from Sergio Rossi. “We still have a long way to go to reach the scale of our competition. We know that we still have a big reservoir of growth.” In her modest office across the street from Ghesquière’s studio on the Rue du Cherche-Midi, where visitors sit on a Isabelle Guichot bench facing a desk piled high with spreadsheets, she described a deliberate and focused approach to growth, resisting opportunistic avenues such as licensing or co-branding. “We’re not here to try to inflate a balloon that will only deflate a few years later. We only keep a long-term view,” Guichot stressed. “We’re really working on sustainable growth — all the pillars that will make Balenciaga healthy, growing and profitable for the long term.” Indeed, the house has shifted gears — and even retrenched the same week in Las Vegas and Costa Mesa, Calif. Guichot said sales density per square foot at the company’s stores is comparable to its competitors. Besides the black dresses, Balenciaga expects lusty demand this fallwinter for new versions of its classic “motorcycle” bag with leather-covered studs. Also new in stores this fall is an expanded men’s wear collection, as Ghesquière — now at the house for 11 years — applies his touch to the men’s department. “Now he really wants to impose an identity: re-create the wardrobe, and then extend it,” Guichot explained. Although the designer does not stage men’s wear shows, he expanded the collection this season to include what Guichot described as “reshaped classics” for men, including a “big” collection of neckties. The men’s universe now encompasses everything from shoes and eyewear to travel bags, and Guichot described it as a key category as it charts expansion in Asia. “One of the focuses for us in the upcoming years will be Asia-Pacific because it’s an obvious: It’s where everyone is growing the strongest….It just hasn’t been a priority so Two fall 2008 looks from Balenciaga. “ The sky’s the limit. We’re still at the early stages of the brand development. ” — Isabelle Guichot, Balenciaga in some cases. In August, Balenciaga quietly shuttered its swimming pool-like boutique in Hong Kong, which had been a franchise location operated by retailer Lane Crawford Joyce Group. The fashion house plans to open a company-owned flagship there in due course as it plays catch-up in Asia. And last January, Balenciaga bought out its joint venture partner in Japan, Restir, to get a tighter grip on a fashioncrazed market where it is arriving late compared with most European designer brands. “We’re representing for the Japanese clients a new kind of attraction, so it’s sometimes good to be very late on one market because you come up almost as a pioneer after, especially when you come with such a different point of view,” she said. Guichot declined to provide any figures, although market sources estimate Balenciaga’s revenues are currently north of 100 million euros, or $146.1 million at current exchange. The ceo reiterated what parent PPR already disclosed when it reported first-half results last month: continued “high-double-digit” growth across all product categories and regions and a shift to a less wholesale-driven business model. The brand already reached profitability in 2005, beating a Gucci Group deadline by two years. “Seeing the momentum the brand was gaining, and the credibility in terms of fashion, it seemed obvious that we needed to go beyond a purely wholesale business,” Guichot explained, pushing up the sleeves of her black dress from the new fall capsule line. “If we were to remain in a wholesale mode, it would give a very scattered and blurred image of the brand that would somehow be detrimental to its future growth. It’s just shifting to a more personalized business model.” To be sure, Balenciaga boutiques, designed by Ghesquière in collaboration with French artist Dominique Gonzales-Foerster, are hardly generic, blending sci-fi futurism — lighting fixtures resembling satellite arms, display plinths like giant crystal shards bursting through the floor — with local touches for unique shopping environments. Guichot describes them as being “between a store and a piece of art — a contemporary installation.” For example, the London store glows orange, like Mars amid the red brick facades on Mount Street, along with a noisy carpet that’s a wink to jumbled English decorating. Guichot also stressed the importance of retail as a platform to showcase the breadth of Balenciaga’s product range. While the models storming down Ghesquière’s catwalk are never encumbered with accessories, the product range in boutiques spans sunglasses, small leather goods, footwear, costume jewelry and eveningwear. “It adds to the interest of the shopping experience and it gives wealth and boldness to the brand,” Guichot explained. “We’re here to present Nicolas’ point of view and to present a brand universe.” As Balenciaga layers on more directly operated stores and corners — for instance, the shop-in-shop at Printemps in Paris, previously a concession, is now directly operated — Guichot is handling the organizational, logistical, supply chain and human resources implications behind the scenes, hiring managers, planners and buyers to make sure the right merchandise lands at the right time. Given the brand’s limited retail experience to date, Guichot likened each store opening to delivering a baby. “It’s becoming more natural, easier,” she said. To wit: Earlier this month, Balenciaga delivered twins in the U.S., with boutiques opening far. We need to look east,” she said, adding, “We have plans for China in 2009.” In women’s, runway styles represent about 40 percent of Balenciaga’s ready-towear business, higher than the 30 percent often cited in the industry, the balance being pre-collections, Guichot said. The executive also brushed away a lingering stereotype that the brand only fits skinny models. “It’s true to say that it’s part of the brand DNA that Nicholas has a much more tailored and shaped and structured vision than, say, Stella McCartney,” she said. “I mean, I wear Balenciaga and I’m not a 36, unfortunately.” She noted that 38 is the bestselling size, “and you can find a 40, 42.” (Those are equivalent to sizes 6, 8, 10 and 12 in the U.S.) That Balenciaga’s “classic” bag with braided handles and tasseled zipper pulls generates the lion’s share of revenues is also a misperception, according to Guichot, who describes it as a “pillar” of the brand, but hardly a one-trick pony. “A Balenciaga bag has to be timeless. It’s part of the point of view of Nicolas,” she said, also describing strong demand for the range of Lune bags, including clutch versions. Guichot declined to say what proportion of revenues is generated by leather goods, “but when you look in our store, you can understand it’s an important part of our business.” As are the capsule lines, which allow women to build wardrobes with staple styles done in a Balenciaga way. She said recent bestsellers include lightweight cashmere sweaters, motorcycle-style jackets, trenchcoats and jodhpurs. Guichot declined to give a timeline for reentering the beauty business, but described it as an urgent project. “We are actively working on it,” she said, although resisting on naming any potential partners. “I would say that’s the most obvious missing category. There is no plan to do watches, no plan to do kids’ wear.” Balenciaga let its licensing pact with Groupe Jacques Bogart expire at the end of 2007, meaning any beauty products remaining on the market represent old inventories. Another under-the-radar initiative that speaks to the brand’s momentum was the May launch of e-commerce in the U.S. The site — offering all manner of accessories, from shoes and handbags to sunglasses and scarves — has generated reams of discussions and information trading on blogs, and ferreted out mostly new clients across the heartland of America, Guichot said, noting she is mulling expansion to Canada and possibly the U.K. “We were amazed by the reaction, and the fact that without any marketing dollars, there was an instant payback,” she said. “It was a good measure of the brand’s natural attraction.” 12 WWD, TUESDAY, SEPTEMBER 30, 2008 WWD.COM Textile & Trade Report An An origami-inspired ori oor riggam ri gaaam mii-i i---iinnsp nssp spiir ire red design re deesi esssiign iggnn from fro ffr rroom Victoria Vic Vi iict cctttori orri oori ria Shepherd. She hhep eepphe hher eerrdd.. Left: LLef Le eefftt:: A fabric fab aabr bbrric ic by by Texprint Tex T Te eexxppr pri rriint nt winner wiiinnne win w nner eerr Hannah Hannna Ha nnnnaah Jeffries. Jeef eff ffffrrie riiieess.. Buyers Focus on Proven Product at Première Vision By Katya Foreman and Ellen Groves PARIS — Designers shopping last week’s Première Vision textile fair played it safe with orders as they considered the global financial crisis and contended with a French train strike during the show’s four-day run. Many designers said they planned to reorder sure sells and invest in “eye-candy” fabrics to stimulate collections. But the higher end showed some resilience. “In Russia, the world banking crisis hasn’t rendered a strong influence on a demand of luxury products,” said Moscow-based designer Igor Schapurin, adding the company is opening boutiques and increasing distribution. “We haven’t stopped buying luxury fabrics, we’re just forced to be a little more focused,” said Proma Roy, chief designer at New York label Ports 1961. “It is important to keep designing special pieces rather than commercial pieces and that is our forte,” said designer Collette Dinnigan, who added she’s keeping sexy, pretty things and adding more daywear. “Yesterday we had a client from New York who yelled, ‘Your fabrics are more valuable than money,’ as she was leaving,” said Martin Leuthold, creative director of the luxury Swiss mill Jakob Schlaepfer. Leuthold, who noted brisker business than last season, listed the U.S., France, Russia and Asia among continuing strong markets for the firm. Bestsellers included the firm’s new takes on the synthetic Seventies fabric Helanca that Leuthold first presented to Pierre Cardin and Courrèges in the Seventies. “We’ve brought it back as embroidery in a new range of colors, 39-0(/.9/.4(%-/6% ")''%2!.$"%44%2!4 using laser cutting or encrusting it with rhinestones,” he said. “Designers love it as it has great volume and it’s stiff.” Undyed, rustic fabrics and natural materials were key directions. “We saw cashmere that looks really itchy, but is beautifully soft when you touch it,” said Ports 1961’s Roy, citing Louis Vidon knits. Emanuel Ungaro’s designer, Esteban Cortazar, lauded new, modern lace at the salon’s Seduction section. “Lace that doesn’t look like lace,” he said, adding that jersey was his main mission. We haven’t stopped buying “luxury fabrics, we’re just forced to be a little more focused. ” — Proma Roy, Ports 1961 Continuing trends included 3-D, raised textures on fabrics and contrasting patterns on structured fabrics such as stripes on chevron. “It’s not new, but it’s a strong direction,” said Silvie Herrera Ortega from the purchasing department at Inditex Group’s Berschka label. Fabrics and function were also mixed. “I liked the jogging fabrics used for a technical purpose,” said Carol Wu, product developer for Japanese activewear giant Asics. However, price emerged as a major preoccupation. “It’s very hard, we are negotiating on price,” said Christine Fillou, designer at French fashion chain Carroll. “We have to be careful with regard to lace and guipure, which is expensive.” Fernanda Blasco, women’s wear designer for Zara’s higher-priced sister brand Massimo Dutti, said her budget was down “quite a lot.” Andrea Motta, owner of Motta Alfredo, an Italian tannery that specializes in lambskin, goatskin and suede, said it was vital to resist lowering prices to appease designers. “Prices in general are going down because people aren’t willing to pay for creativity anymore, but if we follow that trend it will be impossible to survive,” he said. Exhibitors at Eurovet’s Zoom by Fatex section, dedicated to high-end local contractors, said they’d made vital contacts, but that traffic was slow. “I think many are frustrated with the cheaper quality and delivery problems associated with Asian manufacturers,” said Kris Pidial, managing director of Fit U-Garment Ltd. More consumers are looking for cheaper eco-friendly fabrics which, given the economy, are hard to find, said Vicky Wilson, a freelance textile buyer who lauded the recycled fabrics proposed by Japan’s Toray. In a bid to stand out, some mills had upped marketing efforts. Scotland’s Holland & Sherry, with clients such as Bergdorf Goodman and Saks Fifth Avenue, has sent samples of its fabric that’s a play on the American Stars and Stripes, a blend of merino wool containing Texan wool and American buffalo fiber with a navy blue background and red-and-white pinstripe design, to presidential candidates John McCain and Barack Obama as well as to President Bush. Creativity abounded among the winners of British textile design competition Texprint. “There’s sheer talent here,” said Emma Manston, head of fabric design for London’s Liberty Fabric, which has commissioned Victoria Shepherd, whose origami-like, 3-D designs took top prize together with print artist Hannah Jeffries, to create seven designs for fall-winter 2010. “It’s what textile design should be,” said Manston. “There’s so much copying nowadays.” U.N.: Foreign Investment to Tumble likely to subdue cross-border M&As,” according to the “World Investment Report” by the UN Conference on Trade & Development. The study said mergers and acquisitions in the first moil, total foreign direct investment is forecast to decrease 20 percent this year to $1.6 half of 2008 were 29 percent lower than in the second trillion from a record $1.83 trillion in 2007, half of last year. In 2007, foreign direct investment to rich industrialaccording to a United Nations report. “The strong tightening of credit standards ized countries, spurred by unprecedented levels of M&A and the rise in risk premiums, especially for activity, totaled $1.2 trillion, compared with $940 billion buyouts by collective investment funds, are the year before, and in emerging economies reached a record $500 billion. Emerging countries, especially in Asia, are expected “to be less affected” by the financial crisis, UN analysts said. In 2007, China was the top recipient of foreign direct investment among emerging economies, with $83.5 billion, up from $72.7 billion in 2006. Foreign direct investment in the U.S. reached $232.8 billion Tiger Button Co Inc - New York last year, boosted partly by the low Tiger Button (hk) Ltd - Hong Kong value of the dollar against key forTiger Button (India) Pvt Ltd. eign currencies, and in the same Tiger Button BV - Amsterdam, The Netherlands period the U.S. also remained the Tiger Trimming Inc - New York single largest source country, with Tel: (212) 594-0570 Fax: (212) 695-0265 Email:[email protected] foreign direct investment to the rest of the world of $313.8 billion. By John Zarocostas GENEVA — Amid worldwide economic tur- :(677+675((7 1(:<25.1< WI ZZZV\PSKRQ\IDEULFVFRP )43./4*534!.%7!$$2%33 #/-%6)3)453)./52.%7(/-% THE TIGER COMPANIES 14 WWD, TUESDAY, SEPTEMBER 30, 2008 WWD.COM Textiles & Trade Texworld Feels Economy’s Sting By Robert Murphy PARIS — Economic turmoil and a strike by transit workers did little to aid order writing at last week’s Texworld fabric fair at Le Bourget exhibit halls here. Buyers attending the four-day event said the chaotic economic environment forced them to buy more conservatively and place smaller orders. The impact of weakening economies further showed in the fair’s attendance figures. According to organizers, 15,952 people visited the show, representing a 10 percent decline from last year and a 2 percent drop from the February edition. Organizers attributed a portion of the decline to the transit strike that occurred during the show’s run. Fewer Chinese visitors attended the show and American attendance trailed off by 10 percent as well. Compared with the February edition, Asian atBuyers at work tendance shrank 20 percent and at Texworld. European attendance fell 9 percent, as fewer Italians, Spanish and British made the trip. “To say that business is difficult is an understatement,” said Darren Peden, fabric technician with Leeann Fashions Ltd., a company that works for major retailers in the U.K. “Price is definitely a big concern.” Jessica Cheres, a designer with Disca, a Mexican fabric wholesaler, said she has been attending Texworld for four years and had never seen a more dour mood. “People are being very careful,” she said. “Business is tough.” Michael Scherpe, president of Messe Frankfurt France, which runs the fair, said he expected Texworld to benefit from the economic malaise because buyers were looking for ways to save money. “It’s certain that many of our exhibitors are in a better situation to weather this type of financial storm than many more expensive European companies,” he said. Many exhibitors at the fair said business, though not spectacular, was holding. “With what’s happening we aren’t doing so bad,” said Ayush Murarka, partner at THE FIBER PRICE SHEET The last Tuesday of every month, WWD publishes the current, monthago and year-ago fiber prices. Prices listed reflect the cost of one pound of fiber or, in the case of crude oil, one barrel. Fiber Price on 9/29/08* Price on 8/25/08 Price on 9/24/07 Cotton 55.3 cents 60.07 cents 59.85 cents $3.26 $3.42 $3.66 Polyester staple 92 cents 96 cents 85 cents Polyester filament 85 cents 89 cents 78 cents 118.5 117.2 114.6 $106.89 $114.59 $81.62 Wool August Synthetic PPI Crude oil * INFORMATION ON COTTON AND POLYESTER PRICING IS PROVIDED BY THE CONSULTING FIRM DEWITT & CO. THE WOOL PRICE IS BASED ON THE AVERAGE PRICE FOR THE WEEK ENDED SEPT. 26 OF 11 DIFFERENT THICKNESSES OF FIBER, RANGING FROM 15 MICRONS TO 30 MICRONS, ACCORDING TO THE WOOLMARK CO. THE SYNTHETIC-FIBER PRODUCER INDEX, OR PPI, IS COMPILED BY THE BUREAU OF LABOR STATISTICS AND REFLECTS THE OVERALL CHANGE IN ALL SYNTHETIC-FIBER PRICES. IT IS NOT A PRICE IN DOLLARS BUT A MEASUREMENT OF HOW PRICES HAVE CHANGED SINCE 1982, WHICH HAD A PPI OF 100. OIL PRICES REFLECT LAST WEEK’S CLOSING PRICE ON THE NEW YORK MERCANTILE EXCHANGE OF FUTURE CONTRACTS FOR LIGHT, SWEET CRUDE OIL TO BE DELIVERED NEXT MONTH. Ventures, an Indian mill that specializes in embroideries. “We are close to fulfilling our target.” The majority of buyers said they would keep their budgets on par with last year. Some said they would reduce spending as sales show no sign of rebounding. Most voiced hunger for exceptional fabrics. “I’m looking for technologically advanced fabrics and new types of embroidery,” said Mar Pastor, a designer with El Corte Ingles, the Spanish department store. “Organic fabrics are also very important. The big companies are all moving green. It is important because customers are asking for it.” Anup Agarwal, vice president of Eastern Silk Industries Ltd. in India, said business this year is down “a minimum of 10 percent.” “The problem is that people want better quality and at less expensive prices,” said Agarwal. “People are asking for prices that are below our costs. Obviously, that makes it difficult to satisfy our clients.” WWD, TUESDAY, SEPTEMBER 30, 2008 15 WWD.COM ITCB Study Reports Lopez, the Beckhams at Macy’s Post-Quota Findings Dan Matthias Retires at Mothers Work By Sharon Edelson NEW YORK — Mothers Work Inc. said Monday that Dan Matthias, who in 1982 cofounded the business with his wife, Rebecca, is retiring as chief executive officer today. Matthias, who is also the company’s chairman, will continue to serve as a director of Mothers Work and as nonexecutive chairman of the board. He will remain available to management in an advisory capacity through September 2012. Matthias, who will be 65 years old on Oct. 5, will be succeeded on Wednesday by Edward “Ed” Krell, chief operating officer of Mothers Work. Rebecca Matthias, president and chief creative officer, will continue in those roles and will report to Krell. The 45-year-old Krell joined Mothers Work in 2002 as senior vice president and chief financial officer. The following year, he was promoted to executive vice president and cfo. In 2007, Krell added chief operating officer and cfo. In July, Krell was named chief operating officer of the company. Mothers Work had a difficult 2007. Sales for the fiscal year declined 3.5 percent to $581.4 million, driven by a 4.8 percent decrease in comparablestore sales. The company had a net loss of $400,000, or 7 cents a share, in 2007, a significant earnings reduction from fiscal 2006. Krell was instrumental in the restructuring of Mothers Work brands and store nameplates in July that effectively eliminated the Mimi Maternity moniker. “One reason for the restructuring is to reduce costs in a tough environment,” Matthias said in July. “Doing this will help sales, improve our operations and de-confuse the customer. We were a very confusing company.” Founded as a catalogue business, Mothers Work has become the world’s largest maternity apparel retailer with more than 1,500 locations under the Motherhood Maternity, Destination Maternity and Pea in the Pod nameplates. Mothers Work produces a line of maternity apparel for Kohl’s and operates leased departments at Sears. In connection with Matthias’ retirement, the company expects to take a pretax charge of about $2.5 million in the fourth quarter of fiscal 2008. PHOTO BY PASHA ANTONOV GENEVA — The end of quotas three years ago hasn’t resulted in major disruptions to global textile and apparel trade, according to a study by the International Textiles & Clothing Bureau. “Admittedly, post-quota developments have produced substantial shifts in export fortunes,” said the report by Geneva-based ITCB, representing industry in 26 developing countries that favor fewer trade restrictions. “Yet, it is now apparent that dire predictions proved ill-founded.” The study noted, however, that it is still “early days in the adjustment process.” Gains in U.S. and European Union imports in the last three years have been “slower” compared with the preceding decade, the report said. From 1995 to 2004, imports of apparel in the U.S. grew at an average of 8.9 percent annually, but in the three post-quota years, they have grown by 5.4 percent. In the EU, import growth advanced 10 percent in the decade before the elimination of quotas, but by 6.5 percent during the post-quota years. The co-authors, ITCB executive director Munir Ahmad and analyst Dinora Diaz, noted that several developing countries that were projected to “fall victim to heightened competition have been holding their own or even increasing their share of the enlarged pie.” For example, China posted sharp export growth to the U.S. and European Union, as did India, but at somewhat lower levels than predicted. The report said solid advances were also registered by smaller players that had been forecast to become major casualties in the post-quota era that began Jan. 1, 2005. “In the U.S. market, Vietnam, Nicaragua, Haiti, Bangladesh, Cambodia, Indonesia, Jordan, Egypt, Peru and Pakistan all logged respectable rates of growth,” said the study. Between the beginning of 2005 and the end of 2007, Bangladesh averaged growth rates, in value terms, to the U.S. of 15.6 percent, and an 11.9 percent expansion in volume, while Cambodia saw a 19.1 percent gain in value and a 9.7 percent volume increase. Indonesia posted a 17.1 percent rise in value of imports and an 8.4 percent gain in volume. Vietnam registered an 18.8 percent climb in value an 18.5 percent in volume. But the ITCB conceded that some countries have found the going difficult and experienced stagnation or declines in annual apparel shipments to the U.S. This list includes: Guatemala, which was down 9 percent; Canada, off 21.8 percent, and Mexico, down 13.9 percent. Countries that are part of the African Growth & Opportunities Act trade preference program saw apparel imports fall 9 percent and the U.S. partners in the Central American Free Trade Agreement posted deceases in imports of 4.1 percent. Other places with notable falloffs in apparel shipments to the U.S. were Hong Kong, dropping 21.4 percent; South Korea, declining 31 percent, and Brazil, falling 25.6 percent. The study said there are likely to be further shifts in fortunes, with the driving force being the “profound influence” government trade policy has had in shaping the direction of trade and investment in textiles and apparel. The large number of players in the industry worldwide and its history to respond “with agility and pace” to changes in the policy environment should not be underestimated, the report said. Since the end of the quota regime, changes in trade policy have witnessed the temporary imposition of quotas on China, improvements in preferential access for Haiti and Peru to the U.S. market, new dispensations under CAFTA and Vietnam’s entry into the World Trade Organization. Thanks to the U.S. qualifying industrial zones program, Jordan has seen apparel exports to the U.S. reach $1.2 billion in 2006. BEAUTY BEAT PHOTO BY GEORGE CHINSEE By John Zarocostas IT’S CLEAR FROM HER PERSONAL appearance at Macy’s Herald Square Monday that Jenny still has plenty of pull — and fans — on the block. Six years after launching her first fragrance, Glow by JLO, at the store, Jennifer Lopez returned with her 10th scent (and first for men), Deseo for Men. She pulled in an estimated 2,000 fans — roughly equal with the tally her Coty mates, David and Victoria Beckham, garnered at their Friday evening appearance in the same spot. “I can’t believe it’s been six years,” said Lopez, clad in a white Fendi dress, jeweled YSL stilettos and diamond Lorraine Schwartz hoops — not to mention her canary diamond engagement ring. “The fact that we’re still making an impact with Glow, as well as our other fragrances, it’s amazing. And we’re going to keep doing new things.” Could that include color cosmetics or skin care? Perhaps, but not anytime soon. “These are all things that we’ve talked about, but you have to have the proper amount of time to put into it. You can’t just say, ‘Go do a color line for me, go do a skin care line for me.’ Jennifer Lopez at Macy’s on Monday. That’s not how I work….I think those things twins did accompany Lopez and Anthony to are in my future, but we need to wait for the Europe. “I won’t leave them,” she said. The triathalon? “It was challenging, but proper time.” And right now, she admits, she doesn’t I like a challenge,” she said. “I am a very feel like giving up the time with her seven- goal-oriented person, and it was a great way month-old twins, Max and Emme. “I’ve been to get back in shape, and it was a great thing easing back into work, but I’ve gotten to to raise money for the Children’s Hospital, spend all this time with the babies. I love which I’ve worked with for many years. It being able to do everything for them — I re- was good to have a goal after the babies.” The fans who had purchased a $94.50 set ally don’t like other people doing [things] for them. I’m having to learn to do that right with the Deseo men’s and women’s scents now, which is very difficult for me. When I had priority in line, but the entire Lopez have to come and do this [Macy’s personal franchise was said to have received a conappearance] for four hours, I’m away from siderable bump during the two-hour appearthem for four hours, and that’s hard for me.” ance. While executives declined to discuss Of motherhood, she says: “It’s so amazingly sales figures, industry sources estimated that Lopez’s scent franchise did at least fun, and so much joy. But it’s work.” Fashion? “We’re doing great with the $35,000 in retail Deseo sales alone during women’s fashion,” said Lopez. “We have her appearance. A few days earlier, the Beckham Signature franchise was the focus at Macy’s Herald Square. The rainy weather didn’t dampen the spirits of David and Victoria Beckham or the approximately 2,000 screaming fans who showed up at Macy’s Friday evening for the launch of the couple’s fragrance duo, Signature for Him and Signature for Her. Clad in a natty striped Tom Ford suit, David Beckham was quick to credit his Giambattista Valliclad wife as the brains behind the fragrances, although Victoria Beckham insists that he is not giving himself deserved credit. “It’s great for me to be able to create a fragrance for him, but he is much more involved than he gives himself credit for,” she said. “David has such amazing taste.” David and Victoria Beckham “She brings it back and we JLO, which is totally international, and decide together,” he said with a quick grin. Just 300 of the hysterical fans — all of Sweetface, which we have in the boutiques here, and that’s how I like it. We’ve kind of whom purchased a $122 gift set — actually streamlined it — it feels really great and got to meet the pair, who seemed surprised manageable for me. We have 25 stores in by the turnout. “For us to get such a pheEurope. I wait for the day that we open up nomenal turnout is fantastic,” Victoria said here somewhere. I’m still working toward before heading out to greet the masses. “We that, and we’re going to do it one day. We’re really weren’t expecting it. It’s an opportuniplugging along.” She plans to head back to ty to meet lots of our fans, and the sales staff Bryant Park, but hasn’t yet decided on a who have worked so hard on this project.” The appearance, the first the couple has season. “I have to have the right season and collection — and the amount of time to do made together on behalf of their fragrances, did upward of $35,000 in sales in just one it right.” Speaking of fashion, she jetted to Milan hour, according to industry sources. Sources for the Dolce & Gabbana show. “And it was estimated that it will do $50 million globDomenico [Dolce]’s 50th birthday, so he had ally in its first year on counter, which would a great party. It was a lot of fun — it was kind make it Coty Beauty’s biggest launch ever. Victoria noted that she and David are alof Marc [Anthony]’s birthday trip that we went on. I wanted to take him away, because ready at work on a pair of flankers for the we haven’t been on a vacation in two years brand, due next September, but declined to or something like that. We’ve been holed give additional details. up in the house taking care of babies.” The — Julie Naughton 16 WWD, TUESDAY, SEPTEMBER 30, 2008 WWD.COM Ready-to-Wear Report By Rosemary Feitelberg AS WALL STREET’S FINANCIAL tremors keep rumbling, several Madison Avenue retailers are bracing themselves for what could be a long stretch of even more uncertain times while already struggling to woo shoppers this fall. Last week, sales associates at 25 stores surveyed were suddenly having to face the fallout, which could be seen in the cautiousness of price-sensitive and indecisive clients, a rash of returns and moratoriums on shopping. Compounding the problem is a slight slowdown in European visitors, who are now thinking twice about visiting the U.S. due to the weakening euro against the dollar. When the currency was stronger this summer, European shoppers made the most of the exchange rate in what one saleswoman described as “abusing the dollar,” and substantially boosted sales. An increasing number of loyal, freewheeling shoppers are now acting as though they are on a tight budget — whether they actually are or not. Sonia Rykiel sales associate Caroline TreveloO’Neil said, “It’s not like these people don’t have money anymore, but some are going to behave that way. They will say they don’t want to try something on even though they have diamonds all over. A lot of this [fear] is perception. People are kind of frozen now.” A salesman at an American designer’s boutique, who requested anonymity, has been “shocked” by the number of Madison Avenue salespeople he has seen standing near their front doors staring blankly out the window, half expecting shoppers just to waltz in. “When the Great Depression happened, that’s when some of the people made most of their money. A lot of people are being complacent. It doesn’t matter how good your windows look or how good your merchandise is. You have to show the customer how to wear it and when to wear it to make it valuable to them,” he said. “The store might be dead but I spend all day on the phone with [international] clients, e-mailing them or sending them pieces on consignment.” At Mulberry’s Madison Avenue store, more shoppers are consulting with their husbands on their cellphones before buying anything. “We’ve actually had clients on the phone describing what they are looking at, and their husbands will tell them, ‘Not now. Let’s talk about it when you get home,’” said Lawrence Coote, loss prevention specialist at Mulberry. Shoppers are now thinking twice about buying anything $1,000 or higher, he said. The number of American shoppers in the store has trailed off, and the European customer base, which accounts for 70 percent of all shoppers in the Midtown store, has decreased slightly due to the weakening euro, Coote said. Mulberry is trying to offset the slowdown with some belt tightening of its own in terms of overhead expenses, corporate layoffs and negotiating lower salaries with new hires, he added. Sonia Rykiel’s Trevelo-O’Neil, who is studying psychotherapy, said, “Fashion is very much for people to please themselves and to look good. When there is a time of austerity, people think, ‘Let’s go back to serious things.’ Even if they have the money, they are going to act as though they aren’t the kind of person who spends money on those kinds of things.” Some shoppers are going through the motions, but then they come up with a reason as to why they can’t buy something on a particular day. Many women, including longtime clients, are asking why a garment has the price it does and some will flat out ask, “Don’t you have anything under $500?” Trevelo-O’Neil said, adding the store does. Last fall 15 people might make purchases at the store a day, whereas recently 10 people each day on average, including browsers, visit the store. These times just call for more personal service and phone orders, she said, adding that one client recently spent $10,000 in the store. Despite consumers’ skittishness, Matthew Bauer, president of the Madison Avenue Business Improvement District, does not expect the neighborhood’s 272 fashion-related stores to be hard hit by the economic shift underfoot. “So much of the client base is very local within a couple of blocks. They generally view Madison Avenue as their Main Street. We continue to be very attractive to the visitor market. This is a mile and a half of great international luxury boutiques, galleries, salons, hotels and restaurants.” At Etro’s Madison Avenue store, Jana Olson, who runs women’s wear, said this summer’s sales were up 25 percent compared with last year due to the bevy of PHOTOS BY KYLE ERICKSEN Erratic Market Affects Madison Ave. Shoppers Shoppers in Midtown Monday. European shoppers. But this month’s sales would “definitely be different,” she said. “There is definitely more talk about price. They will say, ‘Oh, this jacket is $2,000? I don’t necessarily need that.’ It is usually not that way.” “We’re OK here because of our European clientele. As long as we have people coming over here to, as we like to say, abuse the dollar, to get their retail fix, we’ll be alright. People who do live here can’t be as liberal,” Olson said. En route to make a return at Barneys New York, one woman, who requested anonymity, said Wall Street’s fallout and the uncertainty that has ensued is similar to the post 9/11 retail scene. “We need people to keep shopping to support our economy,” she said. “Don’t be negative — please.” Upstairs, a salesman said: “It depends on the person. Some may say, ‘Oh, my husband has me on lockdown.’ and others will be spending like crazy.” However, a saleswoman at the store noted how the demise of Lehman Brothers triggered loads of returns. “It was huge but it was just for one day. I don’t think it will affect Barneys as much as some of the other stores because we have more elite shoppers,” she said. On the store’s main floor, British tourists Katherine Goodwin and Trudy Jackson said they had spent $3,000 and $3,500, respectively, at Barneys and other stores, and planned to spend $5,000 each. Prices are 30 to 40 percent lower than what they would be in the U.K., due to the weak dollar, they said. “It’s always worth flying all the way over here to buy it. But the savings are not as good as they were a year ago,” Jackson said. Killing time in the Co-op before meeting a friend for lunch, a self-described New York housewife, who declined to give her name, said she is being more discriminating about what she buys and is walking away from overpriced European goods. “Everybody is so tired of the [rising] prices [due to the euro]. My friends and I are having a quiet little strike,” she said. “Nobody needs anything. I know a lot of people with money aren’t running out to buy a ton of stuff.” At Searle, store manager Normia Perry believes that having a wide range of price points, especially items in the $200 to $500 range, which are not always easy to find on Madison Avenue, is helping business. The economic fallout has slowed down foot traffic on Madison Avenue, especially in the beginning of the work week. “You do have your days where you say, ‘Where are the people?’” she said. At Chloé, saleswoman Gisela Jimenez said, “People are definitely more cautious, and they definitely want quality versus quantity. They feel a little guilty too. We do hear that from clients. But people are coming in and buying,” with Europeans still driving sales. Zara’s Midtown store was buzzing with shoppers lining up to make multiple purchases one afternoon last week. Sales associate Jannelly Espinal said, “If anything, it’s busier than usual. But it’s mostly tourists.” Saks Fifth Avenue also had its share of customers beyond the bustling main floor. A sales associate at a Madison Avenue European designer store said the weakening euro was affecting store traffic but not dramatically. “The middle class is usually affected first. I have friends who work at department stores who are really worried about business,” she said. “Every day I’ve been getting e-mails from Saks and Neiman Marcus about sales. What exactly is on sale? Fall just started.” Asprey’s international public relations director Ellen Niven said if people are going to spend money, they are more inclined to buy items that will last a long time “more so than a trendy trenchcoat.” That bodes well for Asprey, which specializes in milestone gifts like christening items, watches and engagement rings. WWDTREND Catherine Malandrino Dennis Basso Rebecca Taylor Lela Rose PHOTOS BY PASHA ANTONOV, GEORGE CHINSEE AND GIOVANNI GIANNONI For more, see WWD.com. Milly by Michelle Smith BARING IT ALL Forget cold shoulders. There’s nothing chilly about spring’s one-shoulder dresses. Rather, those asymmetric bare looks are as alluring as it gets. WWD, TUESDAY, SEPTEMBER 30, 2008 17 WWD.COM Gaining Access MEMO PAD BAD NEWS ALL AROUND: Media companies, like everyone else, A selection of Sophie Reyre’s colorful rings. PARIS — Ready-to-wear may take center stage this week, but an intriguing range of accessories awaits visitors to Paris Fashion Week. Here’s a look at some of the newest in the arena. — Katya Foreman Gueta launched his jewelry line two years ago following years of working as a couture textile designer and researcher. “When I work with coral, say, I don’t remove it from its habitat. I prefer to be inspired by nature, but not use it,” said the designer, whose spring collection is inspired by bones, horn and fossils, ALL FIRED UP Not many Kalashnikov bullets carry 7,000 euro, as a poetic study of the elegant structure of anior $10,200, price tags. But then, not many come mal skeletons. Gueta’s vision is to explore materials differconstructed from white gold, their brushed tips ently from the way people are accustomed to flecked with pavé diamonds. Fine jewelry newcomer Caroline Gaspard, seeing it in jewelry. “I want to show a new material that who will be launching her Akillis colcan really imitate and push forward lection this week, said the loaded innovation, as well as show its charms are designed to bring out advantages,” he said, deone’s “inner James Bond girl.” scribing how silicon, an ul“I wanted to create a coltralight and soft material, lection that was inventive also caresses the shape and interchangeable, with of the body. “It’s very a new, rather aggressive A necklace from Tzuri Gueta’s similar to our organs [spirit],” said the 26-yearbone-inspired spring line. in structure and can old designer, whose imitate a wide range other lines include diaof matter, be it glass, mond-encrusted jigsaw wood, leather.” puzzle pieces and link bracelets inspired by her father’s Rolex watches. COLOR FULL Gaspard’s ambition is Sophie Reyre is out to shake up fusty attitudes to run rings around to fine jewelry. the Paris jewelry scene. “Women tend to either buy The designer’s first, colorclassic jewelry or cheap fashsoaked collection takes inion-forward pieces, even if they spiration from India’s ancient have big means,” she said. “It’s time Mogul Empire. to add a bit of fun and fashion to this frosty “I like surprising color mixes and the world.” idea of encrusting motifs on colored stones,” said Reyre, who also favors contrasting highlow materials, such as resin with precious and FUNNY BONES Man has forever imitated nature. But Israeli jew- semiprecious stones like tourmalines, amber, elry designer Tzuri Gueta has brought the art to rubies and sapphires. The line is sold at Karry O’ in Paris, retailing new heights with his realistic imitations crafted for 1,200 to 2,300 euros, or $1,750 to $3,350. from silicon, silk and viscose fiber blends. Jay Ahr’s Madison Avenue salon. JONATHAN RISS LOVES NEW YORK. “I’m crazy about this city,” says the Parisbased Belgian designer of Jay Ahr, and he’s working hard to make the feeling mutual. Bergdorf Goodman introduced Jay Ahr’s easy cocktail dresses to the American public last spring, and, while Riss was pleased to have such a prestigious New York address, he felt “it was important to have a place here to show more than one dress on a rack.” So he opened a private salon at 801 Madison Avenue last month. Done up with crown moldings imported from Versailles, marble furniture and Baccarat crystal, the salon, which Riss believes offers the complete Jay Ahr experience, brings a touch of traditional French grandeur — not to mention the firm’s full ready-to-wear, jewelry and accessories collections — to New York. Manhattan is more than just a new home to Riss. It has sentimental value. According to Riss, Jay Ahr, launched in 2005 and named for the phonetic spelling of Riss’ initials, was inspired by American style. “In New York, I saw all of these girls wearing dresses all the time,” says PHOTOS BY JOHN AQUINO Fresh Ahr Riss. “I said, ‘Let’s do something more dressy for women in Paris, so they can take their jeans and put them somewhere else.’ Just wear a dress, like that line from Jonathan Riss Diane von Furstenberg, ‘Feel like a woman, wear a dress.’” He started with jersey T-shirt dresses and eventually added eveningwear to the mix. Within a year, Riss, who got into fashion by working in textile factories in the Ukraine and India before privately designing wedding dresses, opened a boutique on Paris’ Rue du 29 Juillet. The Jay Ahr collection, which retails for $1,500 to $6,000 for clothing and up to $8,500 for jewelry, is in more than 40 stores, including Bergdorf Goodman, Hirshleifer’s and Harrods and is also available on Net-a-Porter.com. Of course, Riss considers his Madison Avenue outpost to be the most exclusive venue of all. — Jessica Iredale were hit hard Monday by the collapse in congressional efforts to pass the $700 billion bailout plan. Shares in News Corp., publisher of The Wall Street Journal, sank 9.6 percent to close at $11.77, while the New York Times Co. fell 3.8 percent to $14.35, and shares in The Washington Post Co. dropped 4.2 percent to $540. Over at Time Warner Inc., shares fell 9.2 percent to $12.90. And, in further bad news for print media, today’s edition of The New York Sun will be its last. The broadsheet, which published its first issue a few months after Sept. 11, 2001, with backing from the likes of former press baron/now convict Conrad Black, didn’t get the necessary funding it needed to stay in business. “Nearly seven years later, our editors and backers are even more of the view that there is indeed a place for the kind of intelligent, thoughtful broadsheet we envision in our city, which is why we are scrambling to find others who share this vision and the sense of possibility,” wrote editor in chief Seth Lipsky, in a letter to readers that ran on Sept. 4. “If we fail, the newspaper and its voice will die. All the more energetic will be our efforts in the coming weeks to ensure that the conversation we’ve begun these past few years will continue.” But with the stock and credit markets being what they are, no more money to back the paper could be found. — Amy Wicks DUBAI STILL HAS LOTS OF MONEY: With massive consolidation in the U.S. financial sector and oil prices still high, Doubledown Media is heading to where the money is. The publisher of Trader Monthly and Dealmaker started printing the former in Dubai this summer, and now it has revealed plans to launch the second title there, too. Randall Lane, president, said both magazines will be sent to a targeted group of readers — all of whom easily have an annual household income north of $600,000. “We’ve seen readers grow in the emerging markets,” said Lane. “It’s really become a global community.” To publish the Middle Eastern editions, Doubledown has partnered with a Dubai-based start-up, International Media Ventures. Launch advertisers for Dealmaker include Omega, Bentley and Infiniti. The company also publishes both magazines in the U.K., although the financial sector there isn’t any better than its U.S. cousin’s. “Our readers are more likely to be transferred to London, Hong Kong or Dubai than, say, Toledo,” said Lane. “We are expanding globally. We’ve seen a lot of interest in what we do. We’re certainly not slowing down.” — A.W. NO TAKEOFF JUST YET: After a decision Friday night by New York State Supreme Court judge Richard Lowe 3rd blocked The Weinstein Co. from moving “Project Runway” to Lifetime from Bravo for its sixth season, plenty of questions still swirled on Monday. What does the ruling mean for Marie Claire, the reported magazine partner for season six? For the title’s fashion director, Nina Garcia, the bridge between Marie Claire and the hit reality show? For guest judges such as Lindsay Lohan, who reportedly have committed to appear on the next season? For advertisers? What it means is that nothing changes, everything stays the same and season six filming goes on, just without a home. For now. The Weinstein Co. is appealing the decision, which could mean it gets reversed and the show moves to Lifetime after all. “Obviously we will be appealing and remain committed to our partners,” the company said. Production for season six began in the middle of this month in Los Angeles and will continue through mid-October: Season six is scheduled to air in January (the finale of season five will air on Bravo in November). Some plans for the show’s guest stars and sponsorships reportedly have been finalized: Marie Claire is said to be the magazine partner for season six, though The Weinstein Co. has yet to confirm the deal. Advertisers, meanwhile, have taken the news in stride. Said one top television buyer, who requested anonymity: “I don’t think anybody is freaking out, because the show is still being produced.” Any advertisers who negotiated integrated deals with the show likely finalized terms months ago and will still move forward. “When you’re doing an integration, you have to work with the show’s producers and the sales force,” the buyer said. What could be in jeopardy is any additional ad dollars a marketer spent with Lifetime to support any product integration on “Project Runway.” “Those dollars are most in limbo, because those could disappear if the show disappears” and head to whatever new network “Project Runway” would air on. As part of the decision Friday, NBC Universal was ordered to pay a $20 million bond. NBC Universal and The Weinstein Co. are due back in court Oct. 15 for a hearing to schedule resolution of the matter, though some believe the parties could settle the matter beforehand to ensure the sixth season airs. Said the media buyer: “I would not be surprised if money were exchanged between the two networks.” — Stephanie D. Smith NEW AT ASME: The American Society of Magazine Editors created a new staff position to lead the group, appointing Sid Holt as chief executive officer. Holt was most recently editor at go2 Media, a mobile content publisher, and also has served as editorial director of Nielsen Business Media and executive vice president and editor in chief of Adweek magazines. He was managing editor of Rolling Stone from 1990 to 1997. Marlene Kahan, who has served as executive director for 18 years, will now report to Holt. — Irin Carmon 18 WWD, TUESDAY, SEPTEMBER 30, 2008 WWD.COM Taylor, Stone Speak Out at Macy’s Fund-raiser By Anne Riley-Katz Industry Leaders Turn Up At Purses and Pursenalities SANTA MONICA, Calif. — Elizabeth Taylor and Sharon Stone pushed back hard against the nation’s By Caroline Tell IT WAS AN AFTERNOON OF SHOPPING AND eating for New York’s lunching ladies, who came out to bid on their favorite handbags at the third annual Purses and Pursenalities Luncheon at the Metropolitan Club. The event, which benefited the Madison Square Boys & Girls Club, also honored handbag designer Monica Botkier, Badgley Mischka’s Mark Badgley and James Mischka, and Judith Leiber, recipient of the Living Legend Award. Handbags ranging from a Tory Burch clutch to a Tod’s python messenger bag were on silent auction. Some pieces, like a green Hermès waist bag, generated several bids, and some had none. After an hour of socializing and shopping, the Elizabeth Taylor Monica Botkier, Judith Leiber, James Mischka and Mark Badgley. Sharon Stone PHOTO BY PASHA ANTONOV PHOTOS BY TYLER BOYE economic travails at the Macy’s Passport gala here. Taylor, the featured speaker at the annual HIV/AIDS fund-raiser, said, “We must be damn certain our message is heard.” The actress, seated in a wheelchair, stumbled over her speech at times before revealing to the audience that she had forgotten her glasses and was having trouble reading the Teleprompter, which drew laughter and a standing ovation. A look from Auction emcee Sharon Stone said, “I do understand that we Calvin Klein at are facing the biggest economic crisis since the Depression. I the Passport know that to be here tonight, for all of you, is a sacrifice and a gala’s fashion gift. I will ask you to open your hearts and your wallets.” show. The annual fund-raiser, held in Los Angeles and in San Francisco, raised an estimated $1.45 million in its 26th year. Macy’s and its sponsors and partners have raised a total of almost $30 million since the event started. Tommy Hilfiger and Ed Hardy’s Christian Audigier were among the guests Thursday at the Santa Monica Airport’s Barker Hangar. The event featured Pop Art from the estate of artist Keith Haring — who died of AIDS in 1990 and would have turned 50 this year — live and silent auctions, dance and musical performances and a fashion show. Jeff Gennette, chief executive officer of Macy’s West, expressed the hope that upheaval in the financial markets would not dampen fund-raising. “The cause is just so important….The disease has changed over the years; it’s not as visible now,” he said. This year also marks the debut of a related fund-raising effort, Macy’s Celebrity Catwalk Challenge, which will air Oct. 11 on NBC. The special will be hosted by Tori Spelling, and models will include NBC Universal TV personalities such as Jerry Springer, Jack Coleman and Kate Flannery, as well as musical performances by the Pussycat Dolls, Fall Out Boy and Ne-Yo. The broadcast will use behind-the-scenes footage from the Passport fashion show. Also, for the first time this year, the Passport event will be simulcast into 27 theaters in select cities nationwide on Oct. 23, including Boston, Honolulu and Orlando, Fla., as part of an expanded fund-raising effort. Karstadt Parent Arcandor Invokes Share Sale “ By Damien McGuinness BERLIN — Troubled Arcandor AG, the parent company of the Karstadt department store chain, on Monday unveiled an emergency share sale in a move to avoid having to sell some of its assets. The capital increase will allow the company to retain its 52 percent stake in British travel business Thomas Cook Group. Analysts welcomed the news, saying that holding on to Thomas Cook, Arcandor’s only profitable unit, is positive in the long run. Shedding Thomas Cook would have halved Arcandor’s turnover. However, after a slight rally on Monday morning, when the capital hike was revealed, the stock price remained low. After opening on Monday morning at 2.05 euros, or $2.94, it fell sharply to end the day at 1.87 euros, or $2.67. On Friday the stock price had reached an all-time low of 1.58 euros, or $2.27, compared with a 52-week high of 24.19 euros, or $34.69. All dollar figures are converted from the euro at current exchange rates. The decision was made by Arcandor’s supervisory board at the weekend, after its stock fell 46 percent at the end of last week. The group has been under increasing pressure be- cause of the poor performance of its Karstadt division, which operates 90 department stores and 28 sporting goods stores. Rising costs and low consumer spending in Germany led to a drop in the group’s third-quarter earnings, pushing Arcandor to lower its forecast for 2008-09. Over the last year, Arcandor’s shares have lost more than 90 percent of their value as a result of increasing uncertainty about the group’s future. So far, no announcement has been made about a potential change of ownership of Karstadt, and negotiations on possible international partnerships have yet to bear fruit. I’m hoping that we’ll be able to continue what I started and make it even more beautiful. ” — Judith Leiber group moved into a ballroom for lunch and the awards presentation. “What a fantastic crowd, the checks must have been mailed before the events of last week,” joked accessories designer Eric Javits, the emcee. Javits presented the honorees with their awards, which took the shape of painted portraits of handbags made by the members of the Madison Square Boys & Girls Club. “I am very happy to be here and I’m hoping that we’ll be able to continue what I started and make it even more beautiful,” Leiber said. Rocker Brings Onstage Glamour to Jewelry By Sophia Chabbott TYPICALLY, WHEN AN ACTOR OR MUSICIAN GETS INTO THE FASHION BUSINESS, it’s when they’ve already achieved critical, or at least financial, acclaim. But Justin Tranter — a lead singer in an underground “garage glam” band — is hoping his jewelry designs will help him garner the fame he has yet to achieve. The platinum-coiffed Tranter, whose blue eyes are regularly lined in kohl, is the lead singer of Brooklyn’s Semi Precious Weapons. The group has gained some footing in the last few years playing gigs in New York, London, Paris and Montreal, and counts Kate Moss and Moby as fans. But Tranter, who describes the band’s music as AC/DC meets David Bowie, had to finance his musical musings. So with his mother, a Chicago jewelry designer, as an inspiration and mentor, Tranter took a stab at creating jewelry. He launched Fetty of Brooklyn, a line of 14-karat gold, silver and diamond jewelry that sells for $600 to $800 at Barneys New York Co-op, as well as Precious Weapons, a $15 to $30 costume jewelry collection using motifs like guns and axes inspired by his band that retails at Urban Outfitters, Hot Topic and on the band’s Web site, semipreciousweapons.com. “Being a singer and songwriter, my goal is to inspire people and make them feel awesome,” said Tranter, who was once the jewelry buyer for Calypso. “[Having a jewelry company] allowed me to reinvent the indie band model.” Tranter has been eager to make connections, but it’s all with the band in mind. After a chance meeting with a MAC executive, the beauty company signed on Justin Tranter of Semi to sponsor the band. Through the funding of the jewPrecious Weapons. elry, the band was able to work with producer Tony Visconti, who has worked with the likes of Morrissey and David Bowie. The brand’s inaugural album, called “We Love You,” will have a wide release on Tuesday and the band has also produced a video for its single, “Magnetic Baby.” In the video, there are piles of people painted in gold. But it couldn’t be just any golden hue. “Ten-karat gold is my favorite color,” said Tranter. “I just love it. So the makeup team added more silver to it, to make it look like 10 karat.” This month, Tranter begins filming an episode of “Made” on MTV where he will mentor a young girl on how to pursue her dreams of becoming a rock star. But cross-promoting is never far behind the music. Each CD will come with a gun charm necklace, while 2,500 bonus CDs will come with an oversize gun charm necklace with a USB port that will have music and the band’s video. Barneys will sell a sterling silver version of the USB necklace starting Oct. 21. “It’s charming, funny and whimsical, but it’s definitely edgy,” said Carrie Chapman, senior buyer of Barneys New York women’s Co-op accessories. “Each detail is well thought out and the fact that he’s a rock star is appealing to customers. Everyone Fame bracelets loves a story.” featuring braille Tranter has also launched another costume jewelwriting in crystals. ry line called Fame. The brass and crystal collection comprises highly polished brass cuffs and medallions, each having crystals that spell out words like “gorgeous” or “forever” in Braille. This line, which bowed in July, will be sold at Nina at Fred Segal, Alter in Brooklyn and Karmaloop.com at $40 to $100. “My main goal is to change the way pop culture Fetty diamond looks,” said Tranter. “I want to accomplish all the and silver bangles things Gwen Stefani and Jennifer Lopez accomand pendant. plished, but in my own…way.” WWD, TUESDAY, SEPTEMBER 30, 2008 19 WWD.COM IN BRIEF OBITUARY Sidney Garber, Fine Jeweler, 89 SIDNEY GARBER, A PROMINENT Chicago-based fine jeweler, died Sept. 20 at his daughter’s home in Wainscott, N.Y. He was 89. “He was a fanatic for quality and for value,” said his daughter, Brooke Garber Neidich. She noted that her father was ahead of the competition by bringing products from Europe to the store as far back as 1970. “He continued to work until May 2007,” she said. Sidney Garber Jewelers Inc. is located at 118 East Delaware Place in Chicago. It remains family-owned and run by Neidich and her friend Jennifer Aubrey. The son of a watchmaker, Garber opened the store in 1946 and established a reputation for design and craftsmanship. Born in Chicago in 1919, Garber attended the University of Illinois and was a decorated veteran of World War II. In addition to his daughter, Garber is survived by his wife, Deanna Berman Garber; son Blair; sister Esther Port, and three grandchildren. A memorial service will be held at Chicago Sinai Congregation at 15 West Delaware Place at 11 a.m. on Monday. In lieu of flowers, donations may be made to the NYU Child Study Center Open Door Fund. — David Moin Jay-Z, Iconix Face Trademark Infringement Suit A GEORGIA-BASED APPAREL COMPANY HAS ACCUSED JAY-Z AND ICONIX BRAND Group Inc. of trademark infringement over the use of the phrase “I will not lose.” According to documents filed in federal court in Atlanta last week, I Will Not Lose LLC has created apparel under that name since 2004. In its complaint, the company takes issue with the use of the tag line in an advertising campaign for the Iconix-owned and Jay-Zfounded Rocawear apparel brand. As part of the campaign, Rocawear registered the Web site domain iwillnotlose.org, launched a channel bearing the name on YouTube and made the phrase a prominent part of its print ads. According to I Will Not Lose LLC, the fame and reach of the rapper and Iconix have led consumers to states of “reverse confusion” resulting in the belief its goods are Rocawear knockoffs. I Will Not Lose LLC registered its namesake as a trademark in 2006. Jay-Z, whose real name is Shawn Carter, declared the phrase to close the song “Change the Game” on his 2000 album, “The Dynasty: Roc La Familia.” I Will Not Lose LLC is seeking an injunction against the further use of the phrase by Iconix, profits derived from actions found to be unlawful, legal fees and other, unspecified damages. Iconix declined to comment. — Matthew Lynch • SYMS LOSS NARROWS: Improved gross margins and a onetime real estate gain helped off-pricer Syms Corp. reduce its second-quarter losses. In the three months ended Aug. 30, the Secaucus, N.J.-based retailer had a net loss of $1.3 million, or 9 cents a share, versus a loss of $1.4 million, or 10 cents, in the 2007 period. Sales declined 3.8 percent, to $59 million from $61.4 million, and dropped 2.5 percent on a same-store basis. However, gross margin increased to 39.2 percent of sales in the most recent quarter, versus 36.7 percent in the year-ago period. The loss in the 2008 quarter was reduced by a $548,000 pretax gain on the sale of a parcel of land. In the first half of the fiscal year, the net loss dropped to $669,000, or 5 cents a share, from $748,000, also 5 cents. Sales fell 3.8 percent, to $123.6 million, and dipped 2.4 percent on a comparable-store basis. • SENTENCED ON TAX EVASION: A federal judge in Manhattan last week sentenced a former sewing company owner to four years probation for payroll and income tax violations. Kevin Weng, 37, who owned the Manhattan-based stitch firm Maple Corp., pleaded guilty in June to evading over $324,000 in taxes from 2003 to 2006. In entering his guilty plea, Weng admitted to paying employees at the now-shuttered Maple more than $2.1 million off the books. According to testimony, Weng compensated his workers in cash so they could receive welfare and health benefits from public sources. Judge Denny Chin ordered Weng to serve four years probation, including one year of home confinement, and to pay $124,151.36 in evaded taxes. He had already paid back $200,000 prior to his sentencing. “Under the circumstances it was a very fair sentence,” said Ian Redpath, Weng’s attorney. “But the judge made it clear that this type of activity has to cease in the garment district.” • HANESBRANDS BOARD MOVES: Ann Ziegler, senior vice president and chief financial officer of CDW Corp. and a former cfo of several Sara Lee Corp. divisions, has been elected to the board of Hanesbrands Inc., filling a vacancy created by the retirement of Charles Coker. Additionally, J. Patrick Mulcahy, a director since Hanesbrands’ 2006 spin-off from Sara Lee, has been named to the new board position of lead director. The changes are effective Dec. 8. Richard Noll, president and chief executive officer of Hanesbrands, will assume the additional title of chairman upon Lee Chaden’s retirement on Jan. 1. Chaden and Noll continue as directors. After the transition, Hanesbrands will continue to have 10 directors, seven of them classified as independent. The nonindependents are Chaden, Noll and, because of her previous affiliation with Sara Lee, Ziegler. • NUXE INVESTOR: Private French skin care brand Nuxe has sold a “small minority interest” to Naxicap Partners, part of private equity firm Natexis, the beauty company said Monday. The cash injection will be used to develop Nuxe’s domestic and international businesses, the firm added. The deal comes as Nuxe prepares to open a spa, the brand’s fifth, in Paris’ Hôtel Zébra Square. WWD.COM/CLASSIFIEDS For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise. DESIGNERS PATTERN/SAMPLES Garment center location. Professional /Reliable Quality. Men & women all style. Low Cost. Small production. 212-629-4808 PATTERNS, SAMPLES, PRODUCTIONS All lines, Any styles. Fine Fast Service. Call Sherry 212-719-0622. PATTERNS, SAMPLES, PRODUCTIONS Full service shop to the trade. Fine fast work. 212-869-2699. Head Tailored Patternmaker (NYC) Seeking someone to collaborate with design team to create tailored sample patterns, attend fit meetings to oversee the fitting of garments, and create production patterns as needed. Viable candidates must have a strong background in patternmaking, luxury design exp., and a clear understanding of fabric fundamentals. If interested, please send resume and salary reqs to: [email protected] or apply online at: www.dkny.com At Ann Taylor, we recognize that talented associates are a great competitive advantage. We strive to match individual talents to the right role to create a perfect fit. We are currently hiring for Designers for both Ann Taylor Stores and LOFT. You may learn more and apply online at : Luxury Production Mgr Customer Service Rep Customer Service/Sales Growing Accessories co. seeks outgoing, detail oriented person with customer relations and sales assistant experience. Knowledge of order entry and shipping procedures a plus. North Bronx Location. E-mail: [email protected] HUGO BOSS Account Executive Luxury Fashion Co. seeks AE for Shoes & Accessories div. Must have 3-5 yrs exp in Women’s Shoes & Acc’s, For more info go to fashioncareers.com . Email resume: [email protected]ugoboss.com Subject: AE - Shoes & Acc’s SALES ASSISTANT Fast paced Jr. Knit/Swtr importer seeking highly motivated, organized, team player w/ strong computer skills. Will train, must have positive attitude, eager to learn all aspects of sales, w/ potential to grow. Please e-mail: [email protected] Sales Person Junior sportswear company is looking for a dynamic sales / merchandiser for their junior and junior plus bottoms & knits division. Strong following with RTW co sks Prod Mgr w/5 years of exp specialty stores. Please fax resume to: to oversee entire prod process. Will have 212-840-0102 or call: 212-205-3506 to correspond w/ factories, mills & customers as follows prod, development & costing. Fax resume 212-239-4006 or email [email protected] Production Manager Large Access Co sks expd jewelry merchandiser to manage product development team for its jewelry div. Must have exc skills in dev/design w/min. 5 Leading Jr. swtr/knit importer seeking yrs exp & solid Asia background. Fax res designer w/ strong creative and techni212-302-2753 or [email protected] cal skills: flat sketch, teck packs, CADs. Must be organized, detail oriented & highly proficient in PhotoShop, Excel. We are seeking dynamic Customer Illustrator, Service oriented individuals with great Please e-mail: [email protected] communication and typing skills needed to work on behalf of our company this Service Representative will earn up to $3000 monthly any job experien c e needed. E-mail if interested at: [email protected] Designer DESIGN ASSISTANT ASST DESIGNER Production Colourist Panties Plus, growing Intimate Apparel leader, seeks ind to report to (CD) Creative Director/Merchandiser. • Responsible for Lab Dips, Strike Off’s & Communicating w/ Mill via email. • Work with CD to keep cohesive Seasonal Colour Palette consistency across various fabrications. Skills • Min. of 2 years Industry related exp. • Bachelors or Ass. Degree in related field. www.anntaylorcareers.com • Self motivated, detail orientated, works well within a team. FETHERSTON seeks an experi- • Organized, excellent communication Customer Service/Sales ERIN enced womens wear PM w/background & strong follow up skills. Knowledge Growing Accessories co. seeks outgoing, in high end. Job profile & contact info at of Microsoft a must detail oriented person with customer www.erinfetherston.com/studio Salary comm. with exp./skills. E-mail relations and sales assistant experience. resumes & salary history to: Knowledge of order entry and shipping [email protected] procedures a plus. North Bronx Location. E-mail: [email protected] Patternmaker COSTUME JEWELRY PRODUCT MGR/DESIGNER Seeking experienced and well organized asst designer for leading manufacturer of social occasion dresses. Must be experienced w/sample room, computer literate, communicate with factories off shore, able to work in fast-paced design room and have knowledge of garment construction and consumption. Candidate must be motivated, creative, able to multi-task and work well within the design team to meet deadlines. Email resume and salary history in confidence to: [email protected] DESIGNER We are a contemporary collection sportswear, dress and swim company. Due to growth, we are seeking a designer with a min of 3-5 yrs experience designing in the contemporary market to join our team. Individual must be highly creative, motivated, organized, and a team player with technical knowledge. Candidate must be proficient in PhotoShop, Illustrator & Excel. Competitive salary with benefits E-mail resume to: [email protected] PLANNER ANALYST to $75K. Current exp working for a garment co planning retail analysis, replenishment, inventory. Will create systems to be initiated for use with vendor client. Mdtn. [email protected] 973-564-9236 Senior Designer Contemp. designer seeks creative hardworking person in designing collection w/strong tech skills. 5 yrs. exp. & communication w/the Orient a +. E-mail resume w/cover letter to: [email protected] Asst. Patternmaker Designer brand is seeking an assistant patternmaker for sportswear and eveningwear. Must have draping, sewing, finishing knowledge. The individual should be a team player with strong interpersonal skills. Ideally, the candidate should have at least 2-3 yrs of related experience. A bachelors Collaborate w/Creative Director of high degree is pref’d. Please e-mail resume -end RTW women’s designer brand in developing seasonal RTW & accessory to: [email protected] collections. Qualifications: 5-10 yrs design exp w/global, high-end RTW women’s brand, BA in Fashion Design (Masters pref’d), extensive knowledge of design techniques incl. fabrication, Manufacturer of baselayer underwear silhouettes, color ways, construction, finhas an opening for an experienced ishing. Resume [email protected] piece goods and trim buyer. The position includes purchasing all fabric and trim accessories and recording all transaction s TECHNICAL DESIGNERS $HI in our CGS Blue Cherry system. Located 1) Missy-Jrs.-Mens 2) Girl/Boy Mgr in lower Westchester County. Please 3) Knits or Wovens 4) College Grads e-mail resume to: [email protected] Call B. Murphy(212)643-8090; fax 643-8127 SENIOR DESIGNER Piece Goods & Trim Buyer 100% fashion careers NEXT ISSUE CLOSING SOON Issue date: Nov. 24 Close: Oct. 27 For more information on advertising in WWDScoop, contact Christine Guilfoyle, publisher, at 212-630-4737, or your WWD sales representative.
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