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Beauty
Burn Notice
If BeyoncГ© Knowles has her way, things will get very hot at department
store fragrance counters in February. That’s when the entertainer
will launch her first fragrance, BeyoncГ© Heat, with Coty Beauty. The
scent will be available in about 2,000 doors in the U.S., and industry
sources estimated it could do as much as $100 million at retail
globally in its first year on counter. For more, see page 7.
PHOTO BY ROBERT MITRA; STYLED BY DANILO MATZ
Building a Global Brand: Tory Burch Launches Overseas Expansion
By Kelly Wetherille
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See Tory, Page 3
2
WWD, FRIDAY, DECEMBER 18, 2009
WWD.COM
WWDFRIDAY
Permira Buys Back Valentino Debt
By Samantha Conti
LONDON — Private equity group Permira gave
Valentino Fashion Group a vote of confidence
Thursday when it agreed to re-purchase a chunk
of the company’s debt from Citigroup.
According to industry sources here, Permira
and the Marzotto family, which together own
VFG, have agreed to pay Citigroup 250 million
euros, or $362.5 million at current exchange, for
an original debt load worth 730 million euros, or
$1.06 billion. The purchase will reduce VFG’s
outstanding debts by one-third.
“The papers are signed, and they are expected to complete the transaction by the end of the
year,” said a source close to the deal. A Permira
spokeswoman declined to comment.
The source said Permira, which bought Valentino
two years ago for 5.3 billion euros, believed there
was too much debt in the group, and was looking at
opportunities to buy it back and cancel it.
The bulk of the outstanding debt came from
Permira’s purchase of the group, which has a
100 percent stake in Valentino and a 70 percent
share in Hugo Boss.
“Now that they’ve taken steps to deleverage
the business, they are more flexible. They can
now use the interest they would have had to pay
to Citigroup on growth strategies for the brands,”
said another source, who requested anonymity.
The buyback has whittled down Valentino
Fashion Group’s total debt pile to 1.5 billion
euros, or $2.17 billion. The lender banks include
Italy’s Mediobanca and Unicredit.
Beauty
FASHION
tailored coats, cool chain-link knitwear and
4 Chic
elaborate over-the-top cocktail dresses top the
agenda for pre-fall.
GENERAL
the opening of her first overseas flagship in
1 With
Tokyo, Tory Burch has taken the initial step in a
2
6
Nike Income Dips 4 Percent in Second Quarter
NIKE INC. SAID THURSDAY THAT SECONDquarter net income fell 4 percent, partially due
to softness in apparel sales, yet the athletic
clothing and footwear manufacturer still topped
analysts’ estimates.
The Beaverton, Ore.-based vendor said that
for the period ended Nov. 30, net income slid to
$375.4 million, or 76 cents a diluted share, compared with $391 million, or 80 cents, in the yearago quarter. Revenues dipped 4 percent to $4.41
billion from $4.59 billion a year earlier. Analysts
Nike’s earnings per share of 76 cents for the quarter
beat analysts’ expectations.
polled by Yahoo expected earnings per share of
71 cents on sales of $4.4 billion.
For the first half, Nike posted a 1.5 percent
dip in profits to $888.4 million, or $1.80 a diluted share, versus $901.5 million, or $1.83, in the
same year-ago period. Revenue slipped 8.2 percent to $9.2 billion from $10.02 billion.
For the quarter, Nike said footwear sales
shrank 1 percent to $2.32 billion, while apparel sales contracted 10 percent to $1.27 billion.
6
Equipment sales fell 8.3 percent to $241.2 million, but global brand division sales, which included sales from Cole Haan, Converse, Hurley,
Nike Golf and Umbro, mushroomed 56.3 percent
to $25 million.
North America experienced a 4.2 percent decrease in revenue to $1.5 billion, while Western
Europe recorded a decline of 6.5 percent to
$901.6 million. Central and Eastern Europe
registered a 24 percent drop to $260.3 million,
while China had a 3.4 percent dip in revenues to
$403.9 million. Japan’s revenue fell 2.1 percent
to $222.4 million, but sales in emerging markets
rose 8.4 percent to $554.6 million.
“While consumers are gaining confidence,
they remain cautious and prudent,” said president and chief executive officer Mark Parker in
a conference call to Wall Street analysts.
Parker added that, despite the “revenue dip,”
the second quarter shows Nike was able to “deliver the appropriate level of financial performance in a rapidly changing environment.”
Parker pointed to a 10 percent reduction in
inventory levels for the quarter, and spoke of
product innovation in soccer, noting the company’s recent investment in the sport, paired
with the upcoming World Cup, will create “the
perfect storm.”
The company said worldwide futures orders
scheduled for delivery from December 2009
through April 2010 grew 4 percent to $7 billion
from a year ago, but reported orders would
have fallen 1 percent when excluding currency
changes. Emerging markets led the way with a
38 percent jump in future orders, which translates to a 27 percent increase on a constant
currency basis. Future orders from Japan declined 10 percent, or 9 percent on a constant
currency basis, while North America had a 4
percent decline overall.
7
mall operator General Growth Properties
12 Bankrupt
Inc. said on Thursday it is examining options such
as a public store offering and entertaining all suitors.
S
By Alexandra Steigrad
major international push.
Nike Inc. reported Thursday that second-quarter
net income declined 4 percent partially due to
softness in apparel sales.
Despite a bleak market outlook in the U.S., there
are several bright spots emerging in the holiday
retailing picture for fragrance and beauty.
It looks likely the end of the year will provide
some holiday cheer for European beauty retailers,
despite a generally difficult 2009.
BeyoncГ© Knowles aims to light a much-needed
fire under the beleaguered fragrance business this
February with her first scent, BeyoncГ© Heat.
Katie Couric
Diane Sawyer ascends to sole news anchor of
14 As
ABC’s “World News Tonight” on Monday, fashion
opportunities abound with her and CBS News’
Katie Couric.
Classified Advertisements.................................................................................................15
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Lord & Taylor to Launch First Outlet DAILY
LORD & TAYLOR IS ENTERING THE OUTLET
business, a move that reflects mounting interest in the sector among consumers, retailers
and developers.
Lord & Taylor executives said Thursday the
department store chain will open its first outlet,
a 15,000-square-foot unit, in mid-February at the
Jersey Gardens outlet center in Elizabeth, N.J.,
located about 18 miles west of Manhattan. The
unit, which will be in New Jersey’s largest outlet
mall, is considered a test that could lead to additional locations, officials said.
The outlet sector, along with the Internet, is
one of the few bright spots in the depressed retail
landscape. It is attracting more and more consumers in what many retailers call a “secular” shift to
trading down amid economic upheaval. Lower occupancy costs also make outlets desirable expansion strategies for retailers and brands.
Macy’s might be the next department store
player to enter the outlet arena. Officials have
acknowledged that the company is exploring the
possibility, but have yet to announce a site.
J.C. Penney Co. Inc., however, has long operated
outlets, which now number 19. They are primarily
geared to clear catalogue and Internet inventories.
Last week, Simon Property Group Inc. put
the spotlight on the sector by announcing it
would buy Prime Outlets for $2.33 billion. Simon
is likely to remerchandise some of the Prime
portfolio, which consists of 22 outlet centers in
major markets such as Washington, Baltimore,
and San Antonio, as well as tourist destinations,
including Orlando, Fla., and Williamsburg, Va.
There are also some incomplete projects that
Simon could finish, posing more opportunities
for outlets to expand.
On the higher end, Neiman Marcus Inc. and
Saks Inc. are getting aggressive with outlets.
Saks in April 2008 introduced a 26,400-squarefoot prototype with a cleaner, upscale look in
Orlando’s Prime Outlets International Center.
This month, Burt Tansky, Neiman Marcus’
chairman and chief executive officer, acknowledged that the company’s Last Call outlets were
outperforming the regular stores, and that the
fleet of 28 units is likely to grow.
“Our plan is to roll out more stores over
the next four, five, six years, and have them
located closer to the consumer that has an interest in that category of business….Let me assure you, we will do nothing to diminish the
value of our brand and reputation in any way,”
Tansky said.
Retailers have to be careful where they
open outlets. If they are too close to full-price
stores, they could cannibalize the business.
Retailers also must be concerned that their
outlets don’t cheapen the perceptions of the
store brand.
like Daphne Guinness. Diane Sawyer is
an achievable goal for them.
”
— Simon Doonan, on the fashion influence
of female news anchors. Page 14.
A look from
Naeem Khan’s
pre-fall
collection.
TODAY ON
WWD
.COM
PHOTO BY JOHN AQUINO
By David Moin
A lot of women don’t
“
QUOTE have the courage to look
s All the looks from the latest
pre-fall collections including
Naeem Khan, Tse and
VPL by Victoria Bartlett
s Beauty Roundup:
Dec. 18, 2009
s Online this weekend: Week in
Review and Story of the Week
WWD, FRIDAY, DECEMBER 18, 2009 3
WWD.COM
Tory Burch Branches Out With Tokyo Opening
Views of the
new Tory Burch
store in Ginza.
ground floor of Isetan.
So far, Burch’s customer base in Japan appears to mirror that of her home market.
“I was told by the president of Isetan that our [Japanese] customer is 30 and growing on either end, and that’s basically our customer in the U.S. as well. We definitely
are cross-generational,” Burch said, adding the brand is also accommodating a variety
of style sensibilities. “We have a downtown customer; we have an uptown customer;
we have an older customer and a younger customer, and I think they all interpret it in
their own way,” she said. “It’s just the way they put it together. It’s eclecticism.”
Kleine said many of the same products that sell well at home in the U.S. are bestsellers in Asia. “We’re finding similar shopping patterns,” she said.
The Tory Burch product range is priced slightly higher in Japan than it is in the
U.S. The same pair of Reva ballet flats that goes for $195 Stateside costs 29,400 yen,
or $327.95 at current exchange, in Japan. A $150 pair of sunglasses sells for 21,000
yen, or $234.25. Kleine said these prices are in line with the brand’s place in the
Japanese market.
“Our partners know the right positioning for Tory, because we want it to mirror
the position that we have in the States. When Tory launched the company nearly six
years ago, she identified a white space in the marketplace that we are identifying
in each local area as well. So we know that the pricing has to fit into that space,”
Kleine said.
Both Kleine and Burch see great potential for the brand in Japan, even in the context of the economic downturn. Historically, Japanese consumers have been luxuryobsessed, but recently fast-fashion brands such as H&M and Uniqlo are enjoying success here at the expense of many luxury brands.
“I think we’re in a good position because from Day One we’ve been about accessible luxury, and I think price point and delivering the quality that we’re trying to
PHOTOS BY YUKIE KASUGA
Continued from page one
London and Rome. The company also will be opening at least 15 stores in the U.S.
next year.
Much of this international expansion has been made possible through the recent
investment from Tresalia Capital, a Mexico City-based investment company. “One of
the reasons we were attracted to Tresalia was because of their international experience,” Kleine said. “We chose them as a partner because they matched our philosophy and our culture, and they believed in international and they believe also in the
same philosophy that we believe in, which is steady growth but also well-planned-out
and well-thought-out growth.”
Burch is channeling her design talents toward an increasingly international group
of women. Kleine said Tory Burch expects its geographic exposure to shift significantly in the coming years, although she declined to set an exact timeline. As of now,
international sales amount to less than 10 percent of Tory Burch’s total volume, which
is estimated to exceed $200 million. But Kleine said she expects Asia will come to generate one-third of the privately held company’s volume with Europe and the Middle
East comprising another third, and the remainder coming from the United States.
More imminently, the executive estimated Asia will comprise about 10 percent of
the company’s volume next year.
In South Korea, where Burch also has a local partner in the form of Samsung Cheil
Industries Inc., the company plans to open 15 freestanding stores and shop-in-shops
in the next three to five years, including a freestanding store in Seoul this spring. The
company has also turned its focus to China and Southeast Asia.
“We’re working on what the best approach to enter the [Chinese] market is right
now,” said Kleine. “We believe in China and the opportunity that exists in China.”
Burch is also eager to expand her brand eastward. “A Chinese woman is great
for us — we see it in our stores in the U.S. — and we’re looking
always improve and have is a great thing. I
think Japanese women are very savvy when
forward to figuring out [the best way to enter the market],” the
they are buying clothes. They get fashion,
designer said.
When the Tokyo store opened on Dec. 8, there were lines of cusand I think they are very careful shoppers, so I
Tory Burch at her
we’re
positioned well,” Burch said.
tomers outside, waiting for their chance to snap up Burch’s iconic
think
party in Tokyo.
ballet flats and limited edition tote bags designed for the opening.
Already there are Tory Burch products that are exclusive to
Ten shoppers who purchased a tote bag found a “golden ticket” inthe Asian region or even to a particular store, and this is something Burch
side, allowing them access to Thursday’s opening party at a nearby
is interested in expanding upon. Current exclusives are slightly altered variations
of products from the U.S. range, and are mostly limited to handbags and accessories.
event space.
Eager fans greeted Burch when she arrived at the party. She posed
“I think that we’ll even do more [exclusives] as we go, and really learn our cusfor endless photos with guests dressed in her designs, and was even given Christmas tomer and learn about the business. I’m definitely interested in doing different silpresents by some attendees. DJ Cassidy from New York spun a mix of classic and cur- houettes eventually, particularly as our business grows in Asia, and I think that we
rent pop music as models clad in the spring-summer collection posed atop a massive will be looking into that and having a different fit,” Burch said. “We haven’t done that
yet, but it’s something that we’re interested in.”
orange platform.
Burch said she has incorporated inspiration from Japan into past collections, but
The designer, who is in town with her mother, Reva, and her two brothers Robert
Isen and James Robinson, visited the store on Wednesday evening for a meet-and- may go even further in the future. “We’re contemplating doing a collection very much
greet with customers. Fans clamored to speak and pose for photos with the designer, inspired by here, so I’m looking forward to that,” she said, adding such a collection
who signed their makeup pouches, tote bags and invitations. “I’m sort of humbled by would hit stores in spring 2011.
The company has no plans to pursue any product licenses for the region.
[the customers] and their response. It’s been such a nice welcoming,” Burch said.
“The women are just incredible to look at. They have such an individual way of “Licensing is something we’re incredibly careful about. We’ve been in business six
putting things together,” Burch, on her third trip to Japan, told WWD. “The older years now, and we’ve decided to do our first licensing with eyewear, and that was a
women are incredibly elegant in the way they’re dressed, and then the younger very long, careful decision,” Burch said.
However, the company is interested in expanding its product range worldwide.
women have this quirky, unique style that I love to look at. It’s always different.”
The Ginza shop, the first two-story flagship under the Burch brand, is owned and “Eventually we want to do fragrance and beauty — that’s something I’m really interoperated by Look Inc. It is designed with a New York town house in mind, and is ested in — and home,” said the designer. “But who knows if we’ll do it on our own or
outfitted in the brand’s trademark orange and pink lacquer and mirrored walls. The under a nontraditional agreement. But we want to maintain as much control of our
store is located around the corner from Coach and across the street from Valentino. brand as we can.”
The company is also aggressively expanding in Europe. “We have a pretty substanThe Hermès and Armani flagships are also within a block of the store.
Kleine declined to provide a sales forecast for the flagship but said “the first five tial business there now in specialty stores and department stores, and it’s great to be
days are exceeding plans.” The company is looking to open another freestanding store accepted as an American designer there, because you just quite honestly don’t know
in the Aoyama district next year and about 30 stores, including freestanding stores how your collection will be received,” said Burch.
Kleine revealed they are hoping to open two freestanding stores in Europe over
and shop-in-shops, in Japan over a three- to five-year period, she said.
The American company inked its deals with Look in Japan and Samsung in the next year. “Hopefully one of them will be London, and we’re also looking at
Korea last spring. In April, the brand launched in Japan with a pop-up shop on the Rome,” she said.
WWD, FRIDAY, DECEMBER 18, 2009
In Range
WWD.COM
Designers are covering it all for pre-fall with a
range of chic tailored coats, cool chain-link knitwear
and elaborate over-the-top cocktail dresses.
PHOTOS BY JOHN AQUINO AND ROBERT MITRA
4
For more,
see
WWD.com.
Naeem Khan
VPL by Victoria Bartlett
Tse
WWD, FRIDAY, DECEMBER 18, 2009 5
WWD.COM
Dubai Stores Staying Busy FASHION SCOOPS
By Samantha Conti
WHILE DUBAI’S LEADERS SEEK TO
plug the gaps in the country’s finances,
fashion and luxury consumers in the cashstrapped emirate don’t appear to be worried. And they’re still shopping.
Brands including Versace, Armani and
Burberry are conducting business as usual
as shoppers flood the local malls, which
double as parks, entertainment spaces and
refuge from the searing desert heat.
Earlier this month, Versace marked the
opening of three stand-alone stores at the
Dubai Mall with a big cocktail party. The
Versace flagship there is now the largest in
the Middle East, while the other stores are
jewelry and home units.
“There is a wonderful mood; the restaurants are filled, and people are shopping,” said Francesca Versace, who accompanied her father, Santo Versace,
to Dubai for the openings. A designer
who lives between London and Milan,
Versace admitted there may not be the
same buzz in Dubai as two or three
years ago, but “it’s certainly not as bad
as people think.”
rivaled role of Dubai as a tax-free hub and
crossroads for the whole region,” he added.
Tourism is thriving, with many flights
to Dubai discounted — and fully booked.
Russians at one time accounted for a
large percentage of luxury sales in Dubai,
but the economic troubles there caused
Russians to cut back on their trips. “The
Russians come and go in waves, and the
Chinese are flooding in,” said one highranking retail executive based in the region. “Everyone is going back to basics,
buying chic classics, so you see stores like
Vuitton and Chanel doing very well.”
The executive added: “Meanwhile, the
Western brands are seeking to change the nature of their deals here from the traditional
franchise model to joint ventures, so they can
take better advantage of the profit margins.”
Inside and out: Looks at
Versace at the Dubai Mall.
Versace said she and her father also
checked out progress on the upcoming
Palazzo Versace, the residential and resort
apartment tower being built by Emirates
Sunland Group with Versace interiors.
More than 1,000 people are working every
day on the building site, she said, and the
project is due to be completed next year.
“The Versace openings were packed,”
said Charlotte Murphy, a freelance fashion
stylist and editor based in Dubai. “More
generally, stocks in the luxury stores are
low; I am even having trouble finding items
to borrow for my shoots.”
John Hooks, deputy general manager of
Giorgio Armani, said the company is going
ahead with expansion plans in Dubai, at
the Mall of the Emirates.
“Giorgio Armani was perhaps the first
major international brand to open in
Dubai in 1994 with a major flagship. We
now have over 10 stores in the Emirates
and others in Abu Dhabi,” he said.
“Earlier this year, we opened a flagship
at the Dubai Mall and we will open an additional Giorgio Armani store at the Mall of
the Emirates next year. Business continues
to be satisfactory, primarily due to the un-
One company that has
succeeded in doing just that
is Burberry. In late 2008,
the British brand formed a
joint venture with its longstanding franchisee The
Jashanmal Group to create
a Dubai-based company in
which Burberry has a 59
percent stake.
While Burberry declined
to comment on current trading in Dubai, a spokesman
said: “We are pleased with
the development of our joint
venture in the Middle East,
particularly in our key growth
strategies, including children’s wear. We
now have five stand-alone stores in Dubai.”
And while these aren’t exactly go-go
days for retail in the region — store sales
are reported to be down 30 to 50 percent —
the picture is not as gloomy as many media
outlets would paint. For most Dubai locals,
the country’s financial problems are not
new. Some layoffs took place as early as
six months ago, and the local media is controlled to the extent that bad news is kept
to a minimum.
“From what I’ve seen, the Dubai Mall is
jam-packed; it’s the largest and nicest one.
People also come for the huge aquarium,
ice rink and SEGA entertainment center
as much as for the shopping,” said one
Dubai-based financial analyst. “The Mall
of the Emirates is also jam-packed; kids
and teenagers seem to love this place,
while the Marina Mall — which is newer
— has lower footfall.”
The analyst added: “You can’t really
say how much mall goers are actually
spending, but that was the case even during the boom.”
— With contributions from
Luisa Zargani
Esprit Takes Control of China Operations
HONG KONG-BASED ESPRIT HOLDINGS
Ltd. said Thursday it has agreed to buy out
its joint-venture partner in China and acquire 100 percent control of Esprit’s operations in the country.
Esprit said it has reached an agreement to buy China Resources Enterprise
Ltd.’s 51 percent stake in Esprit China
for 3.88 billion Hong Kong dollars, or
about $500 million at current exchange.
Esprit holds a 49 percent stake in the
venture.
Esprit said it will own 100 percent of
Esprit China as of Feb. 17 or another date
that is compatible with both parties.
As of June 30, Esprit China operated
1,112 outlets in 171 cities across China.
The company posted net sales of 2.6 billion Hong Kong dollars, or about $335 million at current exchange rates, for the year
ended Dec. 31, 2008.
“Building on top of the solid foundation
CRE and Esprit established, we believe
Esprit’s business in China will become
one of the most important growth engines
driving the further expansion of Esprit in
the medium term,” said Esprit executive
chairman Heinz Krogner.
GOLD RUSH: Actor Michael Stuhlbarg didn’t expect to be nominated on Tuesday for his
first Golden Globe for best actor in the musical or comedy category. In fact, he scarcely
expected to be a part of the movie that got him there at all — “A Serious Man,” from Joel
and Ethan Coen. “I auditioned for a very small part in the movie, for a Yiddish-speaking
character. But they ended up finding fluent Yiddish speakers for those roles,” explained
Stuhlbarg at a luncheon Thursday hosted in his honor by actor pals Philip Seymour Hoffman,
Billy Crudup, Michael Shannon and Tim Blake Nelson at The Monkey Bar. (The celebration
didn’t halt the power lunching going on all around: in the center table was Wendi Murdoch,
while owner Graydon Carter sat in a corner booth).
Instead, Stuhlbarg was tapped to play protagonist Larry Gopnick.
“Just the fact that I’m here is amazing. The rest is gravy,” he said, as he greeted old
friend and co-host Kristin Johnson.
“[The recognition] is well-deserved and long overdue,” attested Hoffman, who just
finished directing a film, “Jack Goes Boating,” in which he also acts alongside Amy Ryan
and Daphne Rubin-Vega.
Meanwhile, Stuhlbarg is hardly resting on his laurels: he’s working on Martin Scorsese’s
upcoming HBO series “Boardwalk Empire,” about the rise of Atlantic City with Shannon,
Steve Buscemi and Gretchen Mol, which will hit small screens in 2010.
GOING SOLO: Black Fleece will stand on its own in Milan during men’s fashion week next
month. The Thom Browne-designed Brooks Brothers label will hold its first stand-alone
presentation at 10 Corso Como on Jan. 19 between 2 and 5 p.m. The invitation-only event
at the specialty store is designed to give the collection international exposure, a Brooks
Brothers spokesman said. Black Fleece is wholesaled on a limited basis to stores including
Corso Como in Milan, and Harrods will begin carrying the women’s collection next year. In
the U.S., Neiman Marcus carries the shirts and ties. The Brooks Brothers collection will be
shown at Pitti Uomo in Florence for the second consecutive season.
STIMULUS PACKAGE: Even the President has to impress someone with his style choices.
When First Lady Michelle Obama said she is typically the one who buys the holiday gifts
in the Obama household during the Oprah Winfrey interview that aired on Sunday night,
she was interrupted by her husband, who pointed out he had bought her the custom-made
Garavelli brooch she was wearing. Ever since, the phones at the Italian fine jewelry firm
have been ringing off the hook. Sources said the President bought the gold and gemstone
starburst pin for his wife for their wedding
anniversary at a Chicago jewelry store, which
An ad image from
requested anonymity.
Pataugas showcasing the
shoe collaboration with
Jean Paul Gaultier.
DIAMOND EYES: Next week, eyewear retailer Ilori
will launch two special Oliver Peoples diamond
Annice frames. The first is a yellow gold frame
that features micro-pavГ© yellow fancy diamonds
plated in 18 karat yellow gold. The frame retails
for $25,000 and is available exclusively at the
Ilori boutique at CityCenter in Las Vegas. The
white gold style is available exclusively at the Ilori
Rodeo Drive location in Los Angeles. Retailing for
$23,500, it features micro-pavГ© diamonds plated
in 18-karat white gold.
FRENCH SOLE: French shoe brand Pataugas
and designer Jean Paul Gaultier are teaming up
for a collaboration on three pairs of shoes for
summer 2010. Gaultier has designed the capsule
collection of sporty footwear for men and women
based on Breton sailor and fishnet themes. Prices
for the shoes, which will be sold at both Pataugas
and Jean Paul Gaultier stores, will range from
139 euros to 179 euros, or $199 to $256 at current exchange. This marks the second
collaboration for Pataugas, which last year tapped agnГЁs b. for a shoe collection.
GOOD VIBE: Even in a Tiger Woods era, some sponsorship deals still work. TYR’s logo
was front and center on the trisuit that Chrissie Wellington, a triathlete from Great
Britain who is sponsored by the activewear company, was wearing when she smashed
the women’s course record for the Ironman World Championship in October. Her time of
8:54:02 broke a 17-year record and allowed her to capture her third consecutive title
at the race in Kona, Hawaii. Craig Alexander, sponsored by Oakley and Newton Running,
won the second straight year with a time of 8:20:21. NBC will show highlights of
the 140.6-mile race on Saturday from 4:30 to
6 p.m., and, in addition to the professionals,
the coverage will focus on several inspirational
amateurs including Matt Hoover, a former winner
of “The Biggest Loser”; Rudy Garcia-Tolson, a
double amputee, and former running back and
sportscaster Mike Adamle. “Each year we look
to inspire our viewers with the raw power and
competitive nature of the professional athletes
along with the impressive stories of courage and
determination demonstrated by all participants,”
said Peter Henning, vice president of television
production for Ironman.
PARLEZ VOUS: Two fashion figures have been
honored as being among the highest achieving
members of Britain’s French community. As
part of the Français of the Year Awards, whose
winners were announced Thursday night at South
of France house in Mayfair, Roland Mouret was
named Artist of the Year, while Geoffroy de la
Chrissie Wellington
Bourdonnaye, chief executive officer of Liberty,
breaks the tape and
was named Businessman of the Year. “I have
the world record.
always held France very close to my heart, despite
being a U.K. resident,” said Mouret. “As everyone
knows, us French are sometimes considered too proud, but winning [this award] I think
makes me justifiably so.” Raymond Blanc was also named Chef of the Year, while soccer
player Nicolas Anelka, who plays for London’s Chelsea team, was named Sportsman
of the Year. Previous winners at the awards, which are now in their third year, include
Nicole Farhi and Eva Green, who were named Entrepreneur of the Year and Artist of the
Year, respectively, in 2008.
6
WWD, FRIDAY, DECEMBER 18, 2009
The Beauty Report
Europeans On the Upswing
vide some holiday cheer for European beauty
retailers, despite a generally difficult 2009.
“We have significant growth on last year
and are expecting double-digit growth by
yearend,” said Jo Lee, director of beauty buying at the U.K.’s House of Fraser.
Antonella Mandelli, general manager of
Milan’s Mazzolari, explained the perfumery’s
revenues are gaining. “This year is definitely
a positive one for us,” she said.
Meanwhile, at Liberty, business is “through
the roof,” said Ed Burstell, buying director at
the London department store.
However, not everything is rosy. At
Printemps, as at some other retailers,
November proved to be difficult businesswise
after a better October, according to Delphine
HervГ©, head of beauty buying at the department store in France. Yet by early this month,
business was looking up again.
“The market is difficult,” said Fabrice
Obenans, director of category management for
Marionnaud France. “Purchases from the universe of cosmetics and luxury are not considered
priority this year. [But] Christmas and the large
investments in communication by brands and
stores should allow this trend to be corrected.”
Overall, retailers such as Douglas
Perfumeries in Germany are “optimistic”
about holiday sales. “Fragrance across the
also has been one of its best recent launches.
Lola is one of top sellers at The Perfume
Shop, too.
Among the scent launches from this fall,
the most successful for Douglas Perfumeries
in Germany has been Boss Orange, fronted by
Sienna Miller.
“The success is due not just to a great
perfume, but also a 360-degree marketing
concept that ties together fragrance, fashion
and music,” said a Douglas spokesman. “The
launches that perform are strongly supported by 360-degree media,” echoed Isabelle
Pecenicic, head of buying for beauty and perfume at Galeries Lafayette in France.
At Berlin’s Galeries Lafayette store,
among the fall releases, Guerlain’s Idylle has
been a hit.
Scents ringing up strong sales at Mazzolari
include Parisienne, Collection Extraordinaire
and Lola.
Classic scents hold their own during the
holidays. At Douglas, they typically generate a
“three- to fivefold” jump in pre-Christmas sales,
according to the spokesman. “Classic fragrance
overall is up 18 percent, but certain fragrances
within this category are up by as much as 30
percent,” said the Selfridges spokeswoman.
The lure of the tried and true is not restricted to scents, however. “Particularly in skin care,
we find that the ancillary products in a collection are much less popular as customers frequently buy the �hero’ of
the range as a repeat purchase,” said
Harrods’ Quest. “As customers are
just slightly more careful with where
they spend their money, they are returning to brands that they can trust
and products with proven results.”
“Customers are really attracted
by promotions,” said Pecenicic,
who explained Galeries Lafayette
is holding special events to highlight the launches and promotions.
Germany’s Douglas Perfumeries is
A Douglas Perfumeries
store.
Harvey Nichols group is currently
doing very well [within] excess of 20
percent increase on last year for the
same period,” said Daniela Rinaldi,
concessions and beauty director at
the U.K. department store.
Among the fall launches at
Printemps and Marionnaud France,
Yves Saint Laurent’s Parisienne
has been the bestseller.
Printemps’ Hervé lauded the
project, including its juice and
advertising, which she called “extraordinary — it’s beautiful, it’s
elegant.”
“[Parisienne’s success] is certainly explained by a media plan that is strong and
effective,” said Obenans, who added Nina
Ricci’s Ricci Ricci and Guerlain’s Idylle are
placing second and third, respectively.
At Printemps, Ricci Ricci is also a
bestseller.
Balmain’s Ambre Gris was among the winners at Selfridges in the U.K. “Balmain sold
out in its first week and has sold out again,”
said a spokeswoman.
Alberta Ferretti’s signature fragrance and
Michael Kors Very Hollywood put in strong
performances at Harrods, where they have
been driven by in-store personal appearances, according to Annalise Quest, head of
beauty at the London-based retailer. She said
the Bond No. 9 Harrods fragrance collection
was the store’s most successful launch ever.
“Reflecting the trend for �fragrance
wardrobes,’ Van Cleef & Arpels’ Collection
Extraordinaire and Cartier Les Heures de
Parfum have also been very popular with our
customers,” said Quest.
Grey Vetiver, Parisienne, Dolce & Gabbana’s
Rose The One and D&G Fragrance Anthology
are among the highlights at House of Fraser,
according to Lee, who added Marc Jacobs’ Lola
Milan’s Mazzolari.
trying to lure consumers with 10 percent price
reductions for Douglas Card holders. The
chain isn’t having dramatic price reductions,
but rather focusing on perks such as increased
gift wrapping. It’s a service that’s proven popular at Galeries Lafayette in Berlin, as well.
Mazzolari in Milan hasn’t kicked off any
promotions. There, the hottest category remains skin care, with high-end creams and
lotions selling best overall, said Mandelli,
who explained (as did some other retailers)
that there’s a burgeoning demand for prestige
products. “Women who cannot afford [the most
expensive products] are willing to put money
away to be able to purchase them,” she said.
Quirky and hard-to-find items also are
resonating with customers. “Things that
seem special are flying,” said Cowey at
Liberty. There, scented bubble toys by Maison
Francis Kurkdjian, odiferous rubber mats by
FrГ©dГ©ric Malle and false eyelashes created
by Shu Uemura for the store have been a hit.
Selfridges, meanwhile, sold more than 2,000
lash sets in one week in early December. “The
trend for lashes has really been huge this
year, too, and I think we’ll see this continue
into 2010,” said Harrods’ Quest.
— Jennifer Weil, Brid Costello, Susan Stone
and Rachel Mascetta
PHOTO BY PASHA ANTONOV
PARIS — It’s likely this end of year will pro-
U.S. Retailers See Positive Signs
DESPITE A GRIM MARKET OUTLOOK, THERE ARE SOME BRIGHT
spots emerging in the holiday retailing picture for fragrance and beauty
in the U.S.
“We’ve seen business improve in the last few weeks,” said Howard
Kreitzman, vice president and divisional merchandise manager of cosmetics and fragrances at Bloomingdale’s. “We’re feeling more positive
than we have in a while,” he said, adding that sales have strengthened
for both men’s and women’s fragrances. He did not cite numbers.
At Saks Fifth Avenue, Deborah Walters, senior vice president
and general merchandise manager, said customers are responding
to “special or unique
gifts.” She singled out
Bond No. 9, Viktor &
Rolf ’s Flowerbomb, Jo
Malone and ChloГ©. In
color cosmetics, items at
the $50 price point are
among the best movers.
“Giftables by Kiehl’s,
Chanel, Armani, and
Bobbi are selling strongly,” Walters continued.
“The business has remained tough throughout the year, but since
September, we have
seen an improvement
over the previous nine
months,” said Jessica
Hanson, fragrance merchant at Sephora. “The
holiday season has been
stronger than last year,
especially in women’s
fragrance while men’s
fragrance has been slower to rebound.”
Outside
She added the most
Bloomingdale’s
activity has been with
in SoHo.
items that “offer incredible value.” Hanson
noted, “Roller balls have seen the most significant growth in 2009. Hot
gift sets include the Harajuku Lovers Snowbunnies blockbuster ($100)
and the Juicy Couture trio pen set ($35).
Among the best-performing brands are Chanel, Juicy Couture, Marc Jacobs,
DKNY, YSL, Gucci and Stella McCartney, while standout new launches include Leslie Blodgett Perfume Diaries, Kat Von D, Marc Jacobs Lola, Very
Hollywood Michael Kors, D&G, Givenchy Play and La Nuit de L’Homme.
Signs of success are welcome, considering The NPD Group confirmed reports of the department store fragrance business trending
down 11.7 percent for the year through the end of November. Karen
Grant, vice president and global industry analyst for NPD, noted that
a year ago, the fragrance business ended November 4 percent down,
due mostly to a calendar shift. The business then dropped 8 percent in
December to finish last year at minus 7 percent. Looking at the current
figures, she said, “We’re going in worse on a lower base.”
A major manufacturer, who spoke not for attribution, said his polling shows the entire U.S. prestige beauty market, including skin care
and color cosmetics, trending down by 7 percent for the first two weeks
of December. He said his figures show Macy’s up 4.8 percent for the
two-week December period and Dillard’s down 11 percent.
Looking outside the department store sector, “We’re running ahead,”
said Allen Burke, director of beauty merchandising for the QVC home
shopping channel. Noting that November was “very healthy,” Burke
reported strong sales from Bare Escentuals, Philosophy, Mally, Nars,
Laura Geller, Kiehl’s, Perricone, the Wen hair care line and L’Occitane.
Despite the bearish market, high-priced implements are still hot, led
by Clarisonic’s $200 makeup remover.
At Limited Brands Inc., during a third-quarter earnings call,
Victoria’s Secret chief executive officer Sharen Turney mentioned the
Miraculous launch has been a success, and “we expect that momentum
to continue through December.”
In the Bath & Body works division, ceo Diane Neal cited two new
fragrance launches. “P.S. I Love You met our expectations and we are
very encouraged by the performance of Twilight Woods,” Neal said,
adding that home fragrance sales were up to last year, driven by strong
candle and diffuser performance along with the successful launch of
the new scent bug, a passive oil diffuser.
Business is looking up among the high fashion specialty stores. “In
fragrance, we’re up in the high-single digits for December,” said Bettina
O’Neill, vice president and dmm for cosmetics at Barneys New York.
Last week, she noted, fragrance saw double-digit increases. Standout
performers include the FrГ©dГ©ric Malle, Byredo Parfums, Acqua di
Parma and Le Labo brands, according to O’Neill. “For fragrance, it’s
been positive so I think we’ll end [December] up,” she said.
“This fall, our fragrance business at Bergdorf Goodman has been excellent,” said Patricia C. Saxby, vice president of cosmetics, who added,
“We are expecting our December sales to be very strong as well.
“Our strong growth is being fueled by our exclusive niche collections such as [By] Kilian, JAR [Parfums], Tom Ford, Creed, Clive
Christian, Serge Lutens and Les Exclusifs de Chanel,” she said. “In
addition, we have launched several new exclusive collections. These
include Maison Francis Kurkdjian, Van Cleef & Arpels Extraordinaire
and Balmain — all of these have exceeded our expectations.”
— Pete Born and Matthew W. Evans
WWD, FRIDAY, DECEMBER 18, 2009
7
WWD.COM
Beyoncé Set to Give Scent Industry Some �Heat’
oz. for $59 — as well as a 6.8-oz. Gold Sparkling Body
Lotion for $24.
In addition to its U.S. distribution — about 2,000 department and specialty store doors, including Macy’s
— the collection will be available in Canada and Latin
America in February. Additional global distribution —
including Europe, the Middle East, the Far East and
Australia — will begin in August. In-store, the bottle
will be on a rotating platform meant to show off its
facets and graduated coloring. The top of the bottle
is edged with a gold band, inscribed with the words
BeyoncГ© and Heat, and topped with a cap etched with
the letter B.
Both TV and print advertising — with the tag line
BEYONCE KNOWLES IS AIMING TO LIGHT A MUCHneeded fire under the beleaguered fragrance business this February with her first scent, BeyoncГ© Heat.
Industry sources estimate it could do $100 million at
retail globally in its first year on counter. At least half
of that figure is expected to come from U.S. sales.
And the entertainer — who is up for 10 Grammys on
Jan. 31 — is more than up for the challenge. She can’t
wait to get her scent into the hands of her fans.
“I’m so happy with it,” she said during an exclusive
interview with WWD. “I’ve been working on it for a
while now. I was on tour for a year, and I have meetand-greets with fans. I’ve never in my life gotten so
many compliments. Coty has their own testing, but
that was my testing! The fans loved it. They were
like, �I love that, I’m getting that, why isn’t it out
right now? I need it!” said Knowles with a laugh.
Her fans’ passion helped spark the development
process. “What inspires me [both in music and
product creation] is love, passion — something that
makes me want to be better, to do more,” she said.
“Knowing that I have people who look to me — because thank God I’ve had so many great opportunities — I don’t take it for granted. Young girls can see
me, and think, �Wow. Maybe if I work hard and I’m
focused, I can do the same thing.’ And they absolutely can. It’s not just about me being a singer. It’s
about knowing that I have people who look at my
life, and to know I can inspire them inspires me.”
For the fragrance’s name, Knowles drew from
her past tours. “A lot of my performances have had
fire involved, so we thought �Heat.’ Also, red is one
of my favorite colors, as is gold,” she noted; both
colors frame the bottle. “So then we thought of making the bottle look like it’s on fire. I love antique
bottles — my mother had a collection of them when
I was growing up. I wanted something with an antique yet modern feeling. Even with my wardrobe,
I always try to find things that have a little bit of
something vintage, yet still timeless and classic.
The bottle, I felt, was a great mixture of the two.”
The juice, which Knowles concocted with
Givaudan’s Claude Dir and Olivier Gillotin, has top
notes of red vanilla orchid, magnolia, neroli and
blush peach; a heart of honeysuckle nectar, almond
macaroon and crГЁme de musk, and a drydown of
giant sequoia milkwood, tonka bean and amber.
“This was my first time starting from scratch, although I’ve worked with a few other fragrance projects,” said Knowles, who has also been the face of
Tommy Hilfiger’s True Star and Giorgio Armani’s
Diamonds. “Everything, from the bottle design to the The print ad for Heat.
name and the ideas for the commercials — that’s me.
When I commit to something, I do it 100 percent, and “Catch the Fever” — will accompany Beyoncé Heat’s
I’ve never had [creative control over a fragrance] until launch. “It’s called Heat, so we wanted the ads to be
this project. I learned a lot of great things from the past really steamy and dewy,” said Knowles. “My sexiest
— but I always asked myself, �If I could have my own moments are when I’m just getting out of the tub or
scent, what would it be?’ I wasn’t worried about dead- the shower and I’m clean, so I wanted to incorporate
lines. It could have taken me three, four, however many that in the ads. The dress was this liquid-y satin. The
years — this was my first fragrance, and I wanted to song �Fever’ I did years ago and always loved it. [For
the commercial] I got to sing it a bit more whispery,
make sure that it was something I would love forever.”
And there will definitely be more fragrances, said more natural.”
The TV ad was directed by Jake Nava, who also shot
Stephen Mormoris, senior vice president, global marketing, at Coty Beauty, a division of Coty Inc., which Knowles’ videos “Single Ladies (Put a Ring on It),” “If
I Were a Boy” and “Beautiful Liar.” Print advertising,
holds Knowles’ scent license.
“We will explore all of the different sides of Beyoncé shot by Michael Thompson, depicts a sultry Knowles
with future fragrances, but BeyoncГ© Heat is meant to in the same dress worn in the TV campaign. The ad,
be the enduring classic,” said Mormoris. “We think this which will be available as single- and double-page
scent will re-energize the celebrity category.” Mormoris spreads, will begin running in February fashion, beaudeclined to discuss how large a house of Beyoncé fra- ty and lifestyle magazines.
While executives declined to discuss advertising
grances could be, although industry sources estimated a
Knowles-branded fragrance collection could represent and promotional spending, industry sources estimated
that Coty Beauty would spend at least $20 million on
a $300 million market opportunity within a few years.
The Beyoncé Heat lineup includes eaux de parfum advertising and promotion in Beyoncé Heat’s first year
in three sizes — 1 oz. for $39; 1.7 oz. for $49, and 3.4 on counter. About 70 percent of that figure is expected
Blodgett Honored at CEW Lunch
NEARLY 700 MEMBERS, FRIENDS AND
guests of Cosmetic Executive Women
gathered Tuesday at the Waldorf-Astoria
Hotel for the organization’s annual the
Beauty of Giving luncheon, which raises
funds for Cancer and Careers, a CEW
Foundation program designed to provide
support for working women with cancer.
The event raised $515,650 for the cause
and honored Leslie Blodgett, chief execu-
tive officer of Bare Escentuals Inc.
“I don’t have a humungo check to
give you, but what I do have is a story of
what it’s like to raise awareness,” said
Blodgett, animatedly discussing Belinda,
a breast cancer patient she’d met in her
travels. “She said that Bare Minerals
gave her her glow back. I hate sounding
clichГ©, but when you leave this room and
you tell others about this luncheon, you
to be in media spending, with the overwhelming majority of it to be spent on TV ads. As well, the brand is
targeting at least 40 million scented impressions.
An intensive Internet campaign is planned, noted
JerГґme Dujoux, global marketing director, fragrance division, for Coty Beauty. A teaser Web site,
Readytocatchthefever.com, goes live today, with an eblast to Knowles’ fans on Facebook and MySpace. A
unique Facebook application, How Hot Are You?, rates
a user’s profile on its “Fever Meter.” It is designed to
allow potential purchasers to see just how sizzling —
or fizzling, as the case may be — they are.
Knowles will also make an appearance to promote
the scent at Macy’s Herald Square on Feb. 3.
Right before that appearance, however,
Knowles will face the 52nd annual Grammy
Awards. “To be honest, I haven’t really wrapped
my head around it,” she said of her 10 nominations; she ties Lauryn Hill for most nominations
for a female artist in a single year. “I was just
away and planned this really big party [husband
Shawn “Jay-Z” Carter’s 40th birthday party in the
Dominican Republic] — so many details. I was so
into that that when I got the news, I didn’t really
think about it. It sounds crazy, but I’m still like,
�No, that’s not true.’ I have to read it somewhere
to believe it!
“I feel so great, because my heart and my soul
are in this record, and I took my time with it,” she
continued. “I took a lot of chances, and it’s rare
that people allow you to grow up and mature in
your music when they reach you at 15, like me.”
Knowles is also hard at work on her fashion
line. “We just shot our next ad with Tony Duran in
Greece,” she said. “And the clothes are beautiful
— we did a Sasha Fierce line with a lot of studding
and denim and shoulder pads, very sexy and cool.
And the House of DГ©reon dresses are so elegant.
I think the clothes and the ads keep growing and
evolving. We also have amazing accessories — we
have great shoes, hosiery, lingerie. We just got a
new hat license.”
While Knowles won’t stay away from the recording studio for long — “It’s like therapy for me,
I love to do it,” she said — she’s pursuing yet another developing passion: directing. “Right now,
I am learning Final Cut Pro and learning to edit
— I just directed my [tour] DVD,” she said. “I was
figuring out exactly where I wanted the cameras
to go, who I wanted to be the ADs [assistant directors]. I had eight months to figure that stuff out, so
I did it slowly. I already do my own little mini movies, so hopefully I’ll get more into that and develop
my production company, and maybe I can direct
other performance DVDs and videos.”
She’s also planning more movie roles: “I’ve gotten
a lot of great scripts, and it’s difficult for me to pass on
some of it because I would love to do everything. I have
to learn to sit down for a second!”
To those who suggest she might be courting burnout, Knowles disagrees. “It’s hard to balance out everything that I do, but they are all things that I love and
am passionate about — so you just make time. It’s a
lot easier when you love it, you know?” she said. “It’s
like anything else: I just try to balance and focus on
one thing at a time, not do a movie and an album all
at once. I don’t jump into things right away, whether
with my movie career or anything else. I still haven’t
been the star in a movie. I’ve been very conscious to
work with people that are great, who have been doing
it longer than I have, so I can learn from them before
I have that pressure. With my videos, I did probably 40
videos before I finally decided to direct one. I worked
with other beauty companies, but I waited until I knew
exactly what I wanted before I did a fragrance. I don’t
just jump into things and try to do everything — I try to
really learn and make sure I’m ready.”
are raising awareness and supporting a
great organization. I guarantee someone
will benefit from that.”
A spirited live auction offering six luxurious trips raised $48,500 — Blodgett,
Procter & Gamble Co.’s Gina Drosos and
Nars’ Louis Desazars prevailed in their
bids for trips to Canyon Ranch Miami
(Blodgett); the Four Seasons Resort
Nevis in the West Indies (Drosos), and
LaPlaya Beach & Golf Resort in Florida
(Desazars).
— J.N.
Honoree
Leslie
Blodgett.
PHOTO BY JOHN AQUINO
By Julie Naughton
8
WWD, FRIDAY, DECEMBER 18, 2009
The Beauty Report
Image Overhaul: Retailers Roll Out New Formats
By Molly Prior and Faye Brookman
As part of its concept, internally called “Destination
Beauty,” Target is outfitting 30 stores with improved
lighting and lower, tabletop-like endcap displays, product testers, bold inspirational beauty graphics and interactive in-store kiosks.
For instance, Procter & Gamble Co.’s Olay brand
is outfitting Target’s Destination Beauty stores with a
skin care on-shelf diagnostic tool that uses the existing
Olayforyou.com format, said an Olay spokeswoman.
The concept, based on Target’s consumer research,
began as an eight-store test in the Chicago area, said a
Target Corp. spokesman. “We are offering customers the
opportunity to learn more about the products but also
test them,” he said. “The big idea is to create a [beauty]
environment unlike any other in the mass market.”
The mass merchant also is experimenting with upgrading display space. For instance, in a Target store
in Princeton, N.J., Lucite, bread box-shaped display
cases housed skin care items from Olay, L’Oréal
Paris, Neutrogena, Aveeno and the zip-zapping
device Zeno. The same displays were spotted in
a Wheaton, Ill., store, as well.
Referring to Target’s merchandising efforts,
Liebmann said, “They are adding more tone
and texture.”
LUXURY BEAUTY MERCHANTS TAKE NOTE: MASS
market retailers are reinventing themselves, shedding oldfashioned merchandising tactics — stack ’em high, let ’em
fly, included — and adopting the role of store curator.
The U.S. mass establishment — which generated
$38 billion in sales in 2008, according to Euromonitor
International — has taken a hard look at its overflowing
shelves and boldly decided to prune the assortment,
trimming products and, in some cases, brands.
As part of the shift away from commodity and closer
toward value, a host of chain retailers are introducing
new store formats, each of which gives beauty its due
with wider aisles, better lighting and colorful signage.
The list includes: Wal-Mart’s Project Impact remodeling plan; Walgreens’ Customer Centric Retail initiative, designed to overhaul the front-end of its stores;
Target’s Destination Beauty, which includes technology-enhanced displays, and prestige beauty concepts
from CVS Pharmacy and Duane Reade.
The moves coincide with a dismal economy, and
along with it, the migration of department store shoppers to the big-box arena. But, the blueprints for these
prototypes seem rooted in the retail landscape abroad.
“It is amazing to see the global impact on
U.S. retailers,” said Wendy Liebmann, cofounder and chief executive officer of WSL
Strategic Retail, pointing to the influence of
London’s Selfridges on Bloomingdale’s 59th
Street flagship and the impact of Canadian
drugstore Shoppers Drug Mart on the metroNew York chain Duane Reade.
“Right now, most of the innovation in
the beauty industry is coming from retailers,” said Liebmann. “It is all about getting
people into your stores, getting them excited
and wanting to buy.”
Many of these new formats were conceived prior to the recession, but upgrading
the inside of the store is paramount to the
future of retailers, said industry consultant
Allan Mottus. “It is Darwinian and all about
survival by finding your customer,” he said.
“Store format changes are an evolving thing
and are tweaked along the rollout, reflecting
what works and what doesn’t. I don’t remember a time when so much format change was
occurring simultaneously. This reflects how
much change is occurring and the life-anddeath need to survive in this environment.”
Wal-Mart has laid the groundwork for the
next phase of Project Impact, having already
eliminated weaker items and brands from
the assortment. Wal-Mart is now in the second phase, which includes an updated store
format complete with wider aisles and the
removal of “action alley” — or aisle displays
— from the layout, wrote SunTrust Robinson
Humphrey analyst William Chappell in his
report, “The Wal-Mart Walk Thru.” Chappell
stated remodeled stores carry 10 percent
less inventory than Wal-Mart’s non-remodeled units. The analyst expects beauty to be
a prime beneficiary of the layout, stating,
“Now, beauty occupies a larger chunk of
real estate next to the more tangential personal care and grocery departments and is
accentuated by diagonal aisles that can be
The beauty department inside Wal-Mart’s
easily located as the customer enters the
Project Impact format and (above) Target’s
store.” He added the new design designates
Destination Beauty layout.
30 percent more space to fragrance, which
is sold in an open-sell environment located
Target also has pared back its merchandising assortnear the checkout lanes. The beauty department is offment, cutting 5 percent of its stockkeeping units this
set with fake-wood flooring and customized fixtures.
In Wal-Mart’s 2009 annual report, the company stat- year, the company told analysts during its November
ed, “Under this plan, we expect to update approximate- earnings call.
Drugstores are aggressively overhauling their
ly 700 new and existing stores this year.”
During an earnings call last month, Wal-Mart Stores chains, too, with perhaps Walgreens making the most
Inc.’s vice chairman, Eduardo Castro-Wright, said, “The sweeping changes to its assortment. The 7,000-store
Project Impact investments helped us drive an impres- chain continues to implement its CCR initiatives, desive 6.9 percent increase in operating profit on a 1.2 per- signed to boost front-end sales.
At an investor conference hosted by Morgan Stanley
cent sales increase during the third quarter.” He added,
“The scores from the remodeled stores are growing at on Nov. 19, Walgreen Co. president and ceo Greg
twice the rate of the rest of the chain. Customers love Wasson said, “We are updating store layouts, we’re imthe open aisles, the ability to find what’s on their list be- proving product groupings and redefining the overall
cause we have fewer inventories and the speed at which product selection, all aimed at improving the customer
experience and increasing the number of visits and
they can move through the new store.”
Target continues to tinker with its store design, par- basket size.” He continued, “We’re on track to deliver
ticularly in beauty, where it recently cleared roughly 9 the results we want. We’ve completed our CCR rollout
feet of space for makeup artist lines mined from pres- in the Houston and Dallas markets. In fact, I was down
tige, including JK Jemma Kidd, NP Set and Pixi. Target there two weeks ago, visited both markets and several
also allocates roughly 8 feet to its proprietary makeup stores. I came away very pleased. I think the stores
have come through the transition in a very good way.
artist range, Sonia Kashuk.
Better sidelines, less clutter, brighter looks, good customer feedback.”
Last spring, Wasson told WWD, as part of its first
round of inventory reductions, Walgreens’ trimmed
about 17 percent of sku’s across the entire store.
The CCR initiatives are visible in a Walgreens store
in Hillsborough, N.J., where there are more convenience foods and an emphasis on core categories, including greeting cards, over-the-counter medications
and beauty. The biggest change over older departments
is illumination of the beauty fixtures. There is also better signage, lower profile fixtures and a streamlined
beauty consultant area.
Walgreens’ physical store changes are not as dramatic as Duane Reade’s recently unveiled Look Boutique,
but they do reflect a bid to elevate the shopping experience. Earlier this month, one of the architects of the CCR format, Chong Bang,
Walgreens’ divisional merchandise
manager, announced he is leaving the chain for a position at
Shoppers Drug Mart.
Store format changes at
Walgreens’ closest competitor,
CVS Pharmacy, center on beauty.
Since introducing its upscale concept in November 2008, CVS has
outfitted five of its 7,000 stores with
Beauty 360 and plans to end the year
with about 30 units. Next year, an additional 50 are planned, said a CVS spokeswoman. Beauty 360 stocks some 40 brands,
including Vincent Longo, Cargo and Lola
in cosmetics; Mario Badescu, Bioelements
and H20 Plus in skin care, and, in fragrance, Prada and Carolina Herrera.
To retrofit stores with Beauty 360, CVS
typically clears out 3,000 square feet of
space in an existing store, which is connected to the upscale concept via two breezeways. Each unit also has a treatment room.
In an eyebrow-raising move — at least to
denizens of Manhattan — Duane Reade introduced a sleek beauty concept called Look
Boutique in late October. The effort ties into
Duane Reade’s yearlong, chain-wide effort
to elevate its image — notorious for lackluster service and overstuffed aisles.
The Look Boutique includes circular
fragrance counters filled with department store scents, including Lacoste,
Juicy Couture, Usher, Burberry and Gwen
Stefani’s Harajuku Lovers, to name a few.
Tester fragrance bottles are tethered to the
display, which also serves as the checkout
counter for the beauty department. Brands
in the department include, among others,
Too Faced, PГјr Minerals and Pop Beauty.
The 250-plus store chain plans to open
30 more renovated or new units next year,
half of which will likely contain the Look
Boutique, said Joe Magnacca, chief merchandising officer.
In the Duane Reade concept, the premium brands are located in close proximity to the store’s traditional mass market
offering, unlike in CVS’ Beauty 360, which
has a wall separating the boutique from
the rest of the store.
Tony OppГ©, ceo of Pixi, which is sold
in Target, and Pop Beauty, sold in Beauty
360 and Look Boutique, said he decided to take a risk and strike distribution
deals for his premium brands in the mass market. He
said his research indicates consumers are shopping
across all channels and buying upscale goods at mass
without hesitation.
“This whole division between mass and prestige is
going to break down more and more. The term �mass’ is
outdated,” said Oppé. “The wider the distribution, the
better it is for the brand and the retailer.”
Even Sears, which abandoned beauty some years
ago, is jumping back in. “I’m pleasantly surprised with
what they’ve done and it seems to be bringing people
back to the store,” said one source.
And Ulta continues to nip at the heels of the department store business model by attracting upscale brands
to its hybrid beauty mix. Some of the most recent additions include Philosophy, Benefit Cosmetics and, in a
limited store test, Clinique.
Extreme makeovers also are happening upmarket,
with Bloomingdale’s overhauling its entire beauty floor
at its 59th Street flagship, and renovations at Saks Fifth
Avenue, as well.
up
adding
beauty
WWD, FRIDAY, DECEMBER 18, 2009
9
WWD.COM
L’Oréal Outlines First Half, Enters Cleansing
L’Oréal Paris’
Go 360 Clean,
with scrublet.
True Match Roller Perfecting Roll On Makeup
By Andrea Nagel
INARGUABLY, L’ORÉAL PARIS HAS A POLISHED, WRINKLE-FREE HAND IN
every category in mass beauty, ranging from hair color to antiaging skin care to color
cosmetics. And for 2010, the beauty division under L’Oréal USA aims to bring innovation to each of these categories and, in the process, maintain and build on its share
where it competes.
Karen Fondu, president of L’Oréal Paris for just over a year, said overall, the
brand performed well during the year, outperforming growth in mascara and also
seeing double-digit growth in Excellence, despite the hair color category’s overall
flat performance.
Anne Talley, senior vice president of marketing at L’Oréal Paris, said the time is
ripe to grab the department store shopper.
“We consider our brand the closest to a department store brand in the mass channel…so we think that, within the mass market, we [offer] the most premium, the most
luxury, the highest-quality products.”
To put her thumbprint on the skin care portfolio, Fondu repackaged all four pillars within L’Oréal Paris skin care, a change that now “shows the luxury of the product packaging” within Skin Genesis, Age Perfect, Collagen and Revitalift. “It really
helps to distinguish the pillars and makes it easier to shop. It simplifies the packaging and the end benefits and makes more of an impact on-shelf.”
Dermo Expertise also has changed to Skin Expertise, a change Fondu said was
“more straightforward.” Fondu assessed L’Oréal’s skin care performance during 2009,
saying each antiaging pillar realized “robust growth…achieving upward of 11 percent
share,” boosted by the launch of the Revitalift Deep Set Wrinkle franchise, the addition
of Collagen Filler Lip and Collagen Moisture Filler, and “outstanding” performance
with Skin Genesis’ Pore Minimizer. Fondu also pointed to the firm’s sunless portfolio,
which she said has a 50 percent dollar “and is the only brand growing in this category.”
In skin care for next year, additions to Skin Genesis and Age Perfect are on tap,
with Skin Genesis receiving Ideal Skin Genesis Complexion Equalizer, made specifically to even out skin tone, and Age Perfect receiving Hydra Nutrition Anti-Sagging
+ Ultra Nourishing Moisturizer.
In lipstick, L’Oréal owns the leading brand, Colour Riche, and in foundation
ranks second with True Match, Fondu said. In mascara, sources said L’Oréal Paris is
“significantly outpacing growth in the category by two times with 18 percent growth
versus 9 percent.” Sources also estimate L’Oréal’s share in mascara is at about 20
percent, driven by Telescopic Explosion and Extra Volume Collagen.
In cosmetics for 2010, L’Oréal is launching a new application system for True
Match, called True Match Roller Perfecting Roll On Makeup, the market’s first roller
foundation. Talley said the roll on allows her to apply her makeup in about 20 seconds and her hands are left clean of foundation.
SNIPPETS
BOOTS ANNIVERSARY: Boots has outlined some of its plans for the
future. The health-and-beauty retailer looks to expand distribution
of its Boots Laboratories skin care brand to additional markets
following launches in pharmacies in France and Portugal. More
Boots stores are also in the works in the Republic of Ireland and
Thailand. A Boots Apotek format is planned for Norway and a trial
of the format will hit The Netherlands. Boots, which operates 13
pharmacies in Waitrose supermarkets, will begin trialing some of
its products in the chain’s doors this spring. Conversely, Boots will
also start stocking some Waitrose items.
L’OCCITANE APPOINTMENT: L’Occitane has named Evangelia
“Leela” Petrakis managing director for L’Occitane U.S.
Petrakis was most recently general manager of Johnson &
Johnson’s Neutrogena brand. In her new role, Petrakis will
be responsible for leading the future expansion of L’Occitane
in the U.S., the firm stated. Prior to joining J&J in November
2006, Petrakis spent 13 years in the beauty industry at brands
such as Clairol, Avon, Revlon, L’Oréal Paris and Maybelline.
TARGET GETS CURLS: The Curls organic hair care collection,
launched seven years ago and sold primarily in salons,
has created five new products for the mass market and is
subsequently entering 220 Target stores in the U.S. beginning in
March. The new items are based on formulas of their bestsellers,
but tweaked to meet the budget of Target customers. Items
“It is superquick and gives perfect lay down,” she said. It will sell for $14.95.
In mascara, L’Oréal is launching a Concentrated Lash Boosting Serum, one that
contains centella asiatica, a plant extract, to condition and protect lashes. Results
after four weeks of use, L’Oréal said, reveal 71 percent of users saw more lashes, as
well as thicker lashes, and also experienced less lash loss.
The plant extract also has been put into a Double Extend Lash Boosting Mascara,
and together, the two items will sell for $24.95. Separately, the serum will sell for
$14.95 and the mascara, for $12.95.
In hair color, L’Oréal Paris continues to dominate the market with a 43 percent
dollar market share, driven by Preference, Excellence and FГ©ria.
During the year, L’Oréal launched Excellence to Go, which Fondu said was a success, while the Excellence franchise is up 17 percent, according to sources.
For 2010, L’Oréal is introducing two new hair color items. There’s a new brand,
Healthy Look, which will occupy the space formerly taken by Natural Match, a range
to be discontinued next year. Healthy Look addresses women’s concern about damage when coloring their hair as it is ammonia free, works in 10 minutes and lasts
through 28 shampoos. The range also will reveal packaging new to the hair color category — specifically, a pack that tapers in at the top, dubbed “The Belgian House.”
“It creates some interest and a rupture in the category, which has been very consistent in package development and design across all the brands. It’s a first. It signals
newness,” said Fondu.
Also new for hair color is Touch-On Highlights, a product born out of studying
home hair color barriers. The study revealed women feel they get the most control from using their fingertips while highlighting. In turn, L’Oréal created a tool,
Control-Touch FingerTip, that slips onto the index finger and allows her to use it
during the coloring process. “You realize that women start with the applicators, but
ultimately they use the same two fingers and pull it through. It is a natural gesture,”
Fondu added.
For 2010, L’Oréal Paris has created a new brand in the facial cleansing category, called Go 360 Clean, which will target 18- to 30-year-olds and be fronted by
spokeswoman Freida Pinto in TV and print ads. The four-item line includes a Deep
Facial Cleanser, a cleanser for sensitive skin, a Deep Cream Cleanser and a Deep
Exfoliating Scrub, and each includes an industry first: a scrublet. The wiggly plastic
scrubber is designed to gently exfoliate the face for smaller pores and smoother
skin. After use, the scrublet adheres to a mirror.
“The cleansing market really needed an innovation,” said Talley.
In hair care, L’Oréal is expanding on its success with EverPure and next year is
launching EverStrong, which includes a shampoo and conditioner targeting three
issues: volume, moisture and reconstruction. There’s also an Overnight Repair
Treatment and a Deep Replenishing Masque. The shampoo and conditioners will
sell for $6.99 and the treatment items will sell for $8.99.
include a Creamy Curl Cleanser, Coconut Curlada Conditioner,
Lavish Curls Moisturizer, Curl CrГЁme Brule Cream Styler and
Goddess Curls Botanical Curl Gel, priced from $7.99 to $11.99.
REBRAND FOR CALGON: Calgon is planning a total rebranding
effort that will include new packaging, logos, product
extensions and a new marketing campaign.
Calgon, best known for its “Calgon, Take Me
Away!” tag line, aims to reinvigorate the brand
with “a more vibrant message of confidence
and escape.” New Calgon products will launch
in March in the U.S. and Canada. Ilex Consumer
Products Group acquired the business in
November of 2008 from Ascendia Brands.
CASH FOR CLUNKERS, BEAUTY STYLE: In January,
Rusk is proposing to customers that for every old
dryer or flatiron that’s given to their Rusk-partner
salon, a discount of $20 will be applied toward the
purchase of Rusk’s Go Green Dryer or Str8 Iron,
bringing the price down to $59.95 from $79.95.
way it moves and the luxurious, healthy shine you just can’t get
anywhere else,” said Javier of his new role.
MATRIX NAMES NEW VP: Elisa Fischer has been named
vice president, marketing, Matrix U.S., responsible for
strengthening the brand’s development, overseeing marketing,
integrated communications, purchasing, promotional and
creative development departments. Fischer joined
the company in 2002 and for three years worked at
L’Oréal Professionnel. In October 2005, she joined
Matrix serving as director of marketing; then, she
joined Logics as senior director of marketing.
She succeeds Michelle Johnson, who left the
company in November to purse other interests,
the company said.
SUDZZFX SURVIVES STORM: SUDZZfx founder
and chief executive officer J. Aris Koroyan,
said sales of his hair care line this past year
are up 19 percent compared with last year.
Much of the increases can be attributed to an
Calgon’s new look.
earlier repackage and relaunch, he said, but
also because the products do what they say.
KERASTASE TAPS JAVIER: KГ©rastase Paris has
partnered with hairstylist Ashley Javier to serve as spokesperson Its ColourFix3 Complex, for example, uses nano emulsion
technology, to act as a barrier to water. All SUDZZfx products
to both media and consumers. “I’m a true believer and user of
now include ColourFix3 Complex.
this brand because you can always spot Kérastase hair. It’s the
10 WWD, FRIDAY, DECEMBER 18, 2009
The HBA Report
WWD.COM
Sally Hansen’s Colorful 2010 More Doors, Distribution
For Iman’s Cosmetics Line
SALLY HANSEN AIMS TO PAINT THE
town red, blue and 40 additional colors
in 2010.
The Coty Inc.-owned nail care brand
forecasts the upcoming Sally Hansen
Complete Salon Manicure will prove its
biggest nail lacquer launch to date.
Sally Hansen — which, along with
the entire Del Cosmetics portfolio,
was acquired by Coty in late 2007 —
has grown every year for the last decade. It is now contributing to its parent company’s color business, which
also includes Rimmel and N.Y.C. New
York Color. Coty chief executive officer Bernd Beetz said of Sally Hansen,
“The brand has already contributed to the
expansion of Coty’s color pillar, which has grown
to 22 percent” of the business. Coty’s acquisition of
the Del Cosmetics brands increased its color business to 20 from 15 percent.
At a time when two of the most notable salon
brands have made inroads in the mass market,
namely OPI and Essie, Sally Hansen’s Complete
Salon Manicure aims to combine five benefits of
a professional manicure — namely the base coat,
growth treatment, strengthener, color and top
coat — into one formula. Its patented Vita-Care
formula is designed to deliver high shine over the
course of 10 days.
“The shine is self-renewing,” said Bill Boraczek,
senior vice president of cosmetics marketing.
Complete Salon Manicure also aims to take advantage of consumers’ interest in replacing salon visits with at-home alternatives.
Boraczek said, “Shoppers went from conspicuous spending to conservative spending, and that’s
not going to change dramatically. Sally Hansen has
grown in recessions and booms.”
The company expects Complete Salon Manicure
to reap $30 million in first-year retail sales, surpassing Insta-Dri Fast Dry Nail Color, which is
expected to end its first year with $25 million in
retail sales. The introduction of Insta-Dri earlier
this year continues to drive Sally Hansen sales,
which have gained more than 35 percent year to
date, according to the company. Sally Hansen’s
dollar share rose 7.8 points to 49.4 percent share
of mass market nail color.
Sally Hansen will support Complete Salon
Manicure, a range of 42 shades available for $6.99
each, with print ads breaking in March books and
on a micro Web site.
Other products on deck for 2010 include new
PHOTO BY THOMAS IANNACCONE
A selection of shades from Sally
Hansen Complete Salon Manicure.
By Molly Prior
colors across its nail lacquer franchises, including eight metallic shades for Sally Hansen’s Color
Quick Fast Dry Nail Pen, ranging from Green
Chrome to Gold for $7.95 each; spring hues of
Insta-Dri nail polish for $4.95 each; Xtreme Wear
spring shades, like Pink Boca and Wet Cement, for
$2.95 each, and new colors of Diamond Strength
No Chip Nail Color, including 24 Karat and Pink
Proposal, for $4.75 each.
The brand also is adding four treatment formulas with Vita-Release Technology, such as
Continuous Treatment Time-Released Hardening
Formula, for $8.99 each. “They offer a consistent
wave of care,” said Annette Devita, vice president
Sally Hansen Marketing Group.
Sally Hansen had adopted adhesive polymer
strip technology to deliver treatment to nails. The
“instant manicure” product, called 14 Day Nail
Shield, consists of pretreated, sheer color strips
that bond to nails. Nail Shield, available in three
sheer shades for $6.99 each, is designed to help
nails grow longer and impart shine.
Boraczek acknowledged retailers’ moves to trim
vendors’ numbers of stockkeeping units, noting they
have asked brands to cut anywhere from 15 to 25 percent of sku’s. “Sally Hansen has less sku’s per store,
but we haven’t lost [display] space,” said Boraczek.
The brand has presented a revamped 8-foot
planogram display, placing nail color — organized
horizontally — front and center, as it’s an impulse
category, followed by treatments, and then beauty
tools and artificial nails, both considered destination categories.
Sally Beauty Expands Reach in Acquisition Deal
SALLY BEAUTY HOLDINGS INC. SAID THURSDAY
it has acquired Belgian beauty distributor Sinelco
Group NV in a cash deal worth 25.5 million euros,
or about $37.1 million at current exchange.
The wholesaler supplies sundries, accessories,
basic salon goods and electrical products to 1,500
customers in 35 countries, Sally Beauty said.
Chad Selvidge, vice president of the Denton,
Tex.-based firm, said Sally Beauty expects the acquisition to accelerate its growth abroad.
“The addition of Sinelco, which sources many
of its products in Asia, will provide us with the
opportunity to sell to distributors of professional
products in many countries in which we lack a
physical presence,” Selvidge said.
The distributor is based in Ronse, Belgium, and
has sales offices in France and Italy.
Investors weren’t impressed as shares of Sally
Beauty fell 5 cents, or 0.65 percent, to close at
$7.62 in trading Thursday on the New York Stock
Exchange.
— Matthew Lynch
Rite Aid Narrows Quarterly Loss
RITE AID CORP. NARROWED ITS
net loss for the third quarter of fiscal 2010 to $83.9 million from a loss
of $243.1 million in the same period
a year ago, even as sales decreased a
nominal 1.8 percent.
The drugstore chain’s loss per diluted share came in at 10 cents, compared with 30 cents in the year-ago
quarter. On average, Wall Street analysts had expected a loss of 18 cents
per share.
Sales for the third quarter ended
Nov. 28 were $6.35 billion, compared
with $6.47 billion a year ago.
“Our results demonstrate the signif-
icant progress we’ve made to strengthen our company since last year’s
third quarter,” stated Mary Sammons,
chairman and chief executive officer
of Rite Aid. “Liquidity at the end of
the quarter more than doubled, and
we’ve refinanced all of our 2010 debt
maturities to give more time for our
growth initiatives to work.”
Rite Aid’s fiscal year-to-date loss
was $298.3 million, or 35 cents a share,
versus $621.8 million, or 77 cents a
share, in the same nine-month period
a year ago. Sales slid 1.9 percent to
$19.21 billion from $19.58 billion.
— Matthew W. Evans
Mary
Sammons
IMAN COSMETICS, THE EPONYMOUS MAKEUP LINE
of supermodel Iman, is gaining ground in the mass retail
channel, as many brands its size struggle to maintain display space and door count.
The premium-priced cosmetics range — items sell for
up to $15 — was developed for women of color 16 years ago.
After a run in J.C. Penney and Sephora, Iman Cosmetics
began entering the mass channel in 2004 and later that
year inked a distribution deal with Procter & Gamble Co.
The line is carried in 1,700 doors, and industry sources estimate it generates between $20 million to $25 million in
retail sales.
Now, Iman, the line’s founder and chief executive officer, said the state of the consumer reinforces its place in
an ultracompetitive market. “Inherently, consumers have
changed. They are not interested in keeping up with the
Joneses. They are looking for value,” said Iman. The company will enter 300 additional doors next year, bringing its
total door count to 2,000
and representing a increase of 22 percent over
the prior year. Walgreens
will account for 200 of the
new doors.
The line also plans to
enter the minerals fray in
March with the introduction of the $15 Iman Luxury
Radiance Liquid Makeup
Enriched with Minerals.
“We asked women what is
it about the mineral brands
out there that is not working
for women of color — minerals don’t work for some
of my white friends either.
But that’s they’re own problem….They can go to Dior,”
quipped Iman.
Referring to Luxur y
Radiance, Karen Chambers,
product development manager, said most general makeup
mineral foundations contain
pearls and titanium dioxide,
ingredients that do not work
well for darker skin tones. She
noted this formula includes
gold, copper and bronze
pearls. Industry sources estimate Luxury Radiance could
Iman
lift sales by more than 15 perLuxury
cent in 2010.
Radiance
In recent years, the brand
Liquid
has pared back certain categoMakeup.
ries to focus on face makeup,
which accounts for 60 percent
of the company’s business.
Lip and color follow at
30 percent and 8 percent, respectively,
with skin care making up the balIman
ance, said Desiree
Reid, general
manager and senior vice president of brand
development.
Iman Cosmetics’
message of “the
color of one” is
resonating with retailers — including
Walgreens, Target, WalMart, Duane Reade and Ulta
and on Drugstore.com, but the aim, reminds Iman, is selective distribution.
“Being [in] every door bleeds you. It spreads your resources too thin,” she said, adding that it also sticks the
vendor with mountains of inventory.
The Internet has played a vital role for the brand’s
growth, said Reid. The brand began selling on Drugstore.
com at the start of this year. The online retailer created a
virtual Iman Store that includes a feature called, “Recreate
this Red Carpet Look!” It shows a glamorous photograph
of Iman, then lists the nine products need to create the
makeup look. Shoppers can click on the collection, totaling
$100.91, to place it in their basket.
Iman also is a devotee of Facebook and YouTube, and includes face charts and event photos on imancosmetics.com.
— M.P.
WWD, FRIDAY, DECEMBER 18, 2009 11
WWD.COM
Smythson Sold for $29 Million
By Nina Jones
LONDON — Smythson, the luxury stationer
and leather goods label, has been acquired
by Greenwill SA, the company said Thursday.
Greenwill, which is reported to have acquired
Smythson for 18 million pounds, or $29 million
at current exchange, is the holding company for
Tivoli Group, an Italian leather goods manufacturer which supplies accessories to a number of
luxury labels. Smythson stated Tivoli Group’s expertise in leather goods “will enable Smythson to
develop its fast-growing and expanding leather
goods portfolio.”
Smythson also said Tivoli intends to invest in
the company “[to] provide the financial support
and stability to continue to develop the brand and
the business in the long-term.”
The company’s management team — which includes chief executive officer Paddy Byng and creative director Samantha Cameron — will remain
on board after the acquisition. As part of the deal,
Smythson’s management team will share 1.5 percent
of the transaction price as a long-term incentive.
Greenwill acquired Smythson from Kelso
Place Asset Management and Venrex Investment
Management, which bought the company for 16
million pounds, or $25.8 million, in 2005. Later that
year, Byng, a former Dunhill executive, joined the
company as ceo. In 2006, Byng said he planned to
expand the label’s retail presence by opening up to
30 boutiques worldwide by 2010. Since that time, the
company’s retail expansion has been less aggres-
sive, with Smythson’s total number of units growing
from nine to 15. The company has two stores in the
U.S., one in Hong Kong and 12 in the U.K..
The firm, which is primarily known for its
high-end stationery, has been working to broaden
its offering for more than a decade. Cameron,
the wife of British Conservative Party leader
David Cameron, initially joined the brand in the
Nineties to introduce handbags and accessories,
but the category never caught on with Smythson’s
core clientele and was gradually downplayed as
the brand went through different ownerships and
management teams. Handbags and leather goods
were relaunched in 2003 and have since been
more successful. Previous owners of Smythson
— founded by Frank Smythson in 1887 and holding three royal warrants — include entrepreneur
Ray Cork, who sold the company to Kelso Place
and Venrex, and John Menzies, a Scottish newspaper distribution and aviation company, which
acquired Smythson in 1959.
Since Kelso and Venrex’s acquisition, the company has seen its turnover rise by 59 percent, and
has forecast sales of 18 million pounds, or $29 million, for the fiscal year to March 2010. Smythson
said Thursday that sales for the first eight-and-ahalf months of the 2010 fiscal year are up 7 percent compared with the same period last year.
According to accounts filed earlier this year at
London’s Companies House, Smythson recorded
sales of 15.9 million pounds, or $25.6 million, for
the fiscal year to March 2008, a rise of 9.5 percent
compared with the previous year.
4 Italy’s Coin Takes Control of Upim
By Luisa Zargani
MILAN — Italian midmarket retailer Gruppo Coin
SpA has taken control of mass market store chain
Upim Srl, creating a giant retail group that will
count 900 stores.
Through a capital increase, Venice-based
Coin will give a 7.5 percent stake in the new
group to Upim investors, which include the
Borletti family, one of the owners of high-end
department store chain La Rinascente, equity
fund Investitori Associati, Deutsche Bank Real
Estate Opportunities Group and real estate
group Pirelli RE. As part of the agreement, before the deal can be completed, investors must
reduce Upim’s debt by 52.5 million euros, or
$76.3 million at current exchange. Coin, which is
controlled by PAI Partners, declined to provide
the total debt figure.
Coin, which also owns the OVS brand, said the
acquisition is “an extraordinary opportunity” as
it allows the company to expand its store count to
other locations, several of which are of “excellent
quality.” The deal will also make Coin a leading
clothing retailer in Italy and improve efficiency of
the group.
Upim, with annual revenues of about 430 million euros, or $625.4 million, operates 135 Upim
units and 15 BluKids children’s wear stores, in
addition to more than 200 franchised stores. The
DOS Upim stores will be turned into OVS or Coin
stores, while the franchised stores will keep the
Upim banner.
The deal is expected to close by January.
In 2008, Gruppo Coin, which is listed on the
Milan Stock Exchange, reported sales of 1.14 billion euros, or $1.67 billion at average exchange
rates. On Thursday, Coin shares closed up 4.18
percent at 4.61 euros, or $6.7. Upim is not a public company.
Bottega Veneta Opens 3rd Vegas Unit
By Jean Scheidnes
BOTTEGA VENETA HAS LAUNCHED ITS THIRD
Las Vegas location, a 2,000-square-foot store at
CityCenter, the $8.5 billion resort, entertainment and retail development that opened
Thursday.
The new store will carry the entire line
for women’s as well as men’s accessories,
fine jewelry, home, gifts and luggage.
“The store at CityCenter enables
Bottega Veneta to extend the reach of
our unsurpassed service and unique
shopping experience within an important
luxury goods market,” said Bottega Veneta
president and chief executive officer Marco
Bizzarri.
Bottega Veneta will continue to operate its stores
in Las Vegas at the Bellagio and The Palazzo.
All three locations have been designed by creative director Tomas Maier to reflect the brand’s
core values of timeless design, modern functionality, craftsmanship and the finest materials.
“Las Vegas is one of the most important luxury
shopping destinations in the world, and it is only
natural that Bottega Veneta have a strong presence there,” Maier said.
The newest store, which had a soft opening last week, presents Bottega Veneta’s
collection in a comfortable and intimate
environment. Muted, matte neutrals and
earth tones comprise the understated
palette. Every component, from the
handcrafted vitrines to the door handles
sheathed in leather, showcases Bottega
Veneta’s products.
There are vertical window louvers of palm
wood and steel, finely crafted display counters
with sliding trays padded in Ultrasuede, mohair furniture upholstery and custom-dyed, New
Zealand wool carpets. The walls are also covered
with Ultrasuede.
WWD
Men’s
Chanel Workers Demonstrate Over Pay Hike
PARIS — About 200 Chanel employees demonstrated Thursday over salary conditions outside the com-
pany’s Neuilly-sur-Seine, France-based headquarters.
At issue was the 1 percent pay raise to be given to staff earning less than 3,000 euros, or $4,301 at
average exchange, per month. They are demanding a 2.5 percent salary hike instead.
Chanel executives are surprised by the demand because the proposed 1 percent salary increase
allows its employees to preserve their spending power and even raise it in the difficult economy, according to a spokeswoman.
She added only one of the four unions at Chanel called for the employees to demonstrate and also
that all of the workers’ benefits have been renewed, and some of them increased.
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WWD, FRIDAY, DECEMBER 18, 2009
WWD.COM
For full daily stock changes and more
financial news, see WWD.com / business-news.
Financial
Quiksilver Posts Losses for Qtr., Year
QUIKSILVER INC. ON THURSDAY
reported fourth-quarter and full-year
losses, due in part to conservative buying by retailers and sluggish traffic at
the firm’s company-owned stores.
The loss for the three months ended
Oct. 31 widened to $1.8 million, or 1
cent a diluted share, from $955,000, or
1 cent, in the same year-ago quarter.
The loss from continuing operations
was $15.7 million, or 12 cents a diluted
share, compared with $13.8 million, or
11 cents, last year, excluding results of
the Rossignol winter sports and golf
equipment businesses as they were reported as discontinued operations. The
Huntington Beach, Calif.-based firm sold
the Rossignol ski business and Roger
Cleveland Golf Co. in 2008. Revenues
declined 11.2 percent to $538.7 million
from $606.9 million.
For the year, the loss narrowed to
$192 million, or $1.51 a diluted share,
from $226.3 million, or $1.75, in the same
year-ago period. Revenues fell 12.7 percent to $1.98 billion from $2.26 billion.
Robert B. McKnight Jr., chairman,
president and chief executive officer,
said, “Our fourth quarter was very challenging, as retailers bought conservatively for the holiday season and traffic
in our own retail stores remained sluggish through October. In that context,
we were pleased that our results were
somewhat better than we expected.”
The company said based on current
trends, first-quarter revenues are expected to be down 7 percent from the
same year-ago period. Quiksilver also
said it expects a first-quarter loss per
share of between 12 cents and 15 cents.
— Vicki M. Young
General Growth Mulls Options
BANKRUPT
MALL
OPERATOR
General Growth Properties Inc. said on
Thursday that it is examining options
such as a public stock offering and entertaining all suitors.
Rival Simon Property Group Inc. is
said to be considering a bid for some of
General Growth’s assets.
The board and management of the
real estate investment trust “are evaluating alternatives to reduce overall leverage and raise the capital necessary
to emerge from bankruptcy in 2010,” the
firm said. “Financing alternatives include
a public offering of [General Growth] equity. In addition, the board of directors
and management are considering all indications of interest in the company.”
A bankruptcy court on Tuesday approved the REIT’s reorganization plan.
General Growth previously an-
nounced the restructuring of $10.25
billion of secured mortgage loans, representing 194 of the REIT’s subsidiary
debtors owning 103 properties. Plans
are pending for a reorganization for 26
debtors, representing 10 properties and
$1.7 billion of secured mortgage loans.
“The confirmation of the plans of reorganization and the extension of mortgage maturities create the foundation
for GGP to move forward to create a sustainable stand-alone capital structure,
which provides the basis of comparison
for other strategic alternatives,” said
Adam Metz, chief executive officer.
General Growth still needs to restructure about $3 billion of secured
property debt.
The Chicago-based firm filed for Chapter
11 bankruptcy court protection in April.
— V.M.Y.
SoulCycle Unveils Activewear Collection
By Rosemary Feitelberg
SOULCYCLE IS KNOWN TO HAVE
people lining up for its spinning classes,
but there’s no waiting list for the company’s new activewear line designed by
Stephanie Hirsch.
With clubs in Bridgehampton, N.Y., and
the Upper East and Upper West Sides of
Manhattan, company founders Elizabeth
Cutler and Julie Rice seem to already
have a captive audience. Devotees of
SoulCycle’s 45-minute full-body, indoor
cycling workouts include Chelsea Clinton,
Tory Burch, Kelly Ripa, Brooke Shields
and Kyra Sedgwick. Next month, the threeand-a-half-year-old brand will broaden
its reach with a TriBeCa location at 101
Warren Street and another in Scarsdale at
7 Popham Road. SoulCycle’s performanceoriented activewear will be available in
stores early next month and on its Web site,
soul-cycle.com, starting Jan. 11.
While showing off the debut sevenpiece collection at the Third Avenue
club Thursday, Hirsch said she got
hooked on the spinning classes after
having her second child last year. She
also last year sold her stake in the Inca
swimwear label she started.
In synch with the empowerment-minded
classes, SoulCycle’s inaugural activewear
line is called the Spiritual Warrior collection. (Working out to inspiring music amidst
scented candles, cyclists are encouraged by
instructors to connect with their spiritual
core.) “I was so inspired. It changed my life.
I found myself doing it because I wanted to,
not because I had to,” Hirsch said. “When
they asked me to do the clothes, I wanted to
show that fitness [wear] can be fashionable.
It’s called Spiritual Warrior for a reason.
This is a tough, sexy look.”
Made of moisture-wicking Vaportex,
the activewear retails from $35 for a
camouflage trimmed sports bra to $150
for a sleeveless, full-length unitard.
The label is not being wholesaled at
this time, but it may be down the road.
SoulCycle’s founders haven’t determined projected sales for the clothing.
The apparel industry is new territory
for Cutler and Rice, who became exercise
physiologists before starting their company, but hailed from different fields — real
estate and entertainment, respectively.
Eyewear Maker Alain Mikli Buys Vuarnet
PARIS — Eyewear is à la mode these days.
French eyewear maker Alain Mikli
International said Thursday it has acquired French sunglasses manufacturer
Vuarnet. Alain Mikli International injected 4 million euros, or $5.7 million at current exchange, into Sporoptic Pouilloux,
which holds the license for Vuarnet’s sunglasses. That gave Mikli a 75 percent share
of the business. The remaining 25 percent
stake is held by Joseph Hatchiguian,
Sporoptic Pouilloux’s co-founder and,
until now, majority shareholder.
Vuarnet employs about 50 people
and generates annual sales of 10 million
euros, or $14.3 million.
Prior to the acquisition, 80 percent
of Mikli’s business came from corrective glasses, with the remainder from
sunglasses.
In other eyewear news, French ophthalmic optical products maker Essilor
International has agreed to acquire FGX
International Holding Ltd., an American
designer and marketer of nonprescription
reading glasses and sunglasses, for $565
million in cash. This includes the repayment of FGX’s net debt of about $100 million. The deal is expected to close in 2010.
— Jennifer Weil
10 BEST PERFORMERS
DAILY
COMPANIES
HIGH
LOW
0.45
0.42
11.88
10.75
Stage Stores (SSI)
27.82
26.07
Rue21 (RUE)
2.45
2.30
Casual Male (CMRG)
1.24
1.15
Joe’s Jeans (JOEZ)
8.84
8.45
Kenneth Cole (KCP)
28.99
27.66
9.64
9.25
4.29
4.16
18.19
17.80
P/E
VOLUME
AMT
LAST %CHANGE
Phoenix Footwear (PXG)
-
13495
15.9
393418
11.87
+8.11
-
67624
27.70
+3.78
-
182692
2.45
+3.38
24.0
151998
1.24
+3.33
-
42430
8.82
+3.16
200.4
825809
28.94
+3.14
Finish Line (FINL)
-
529304
9.57
+2.68
CachГ© (CACH)
-
40893
4.29
+2.63
26.4
1169251
18.19
+2.42
P/E
VOLUME
Skechers (SKX)
Luxottica * (LUX:MI)
0.44 +10.03
10 WORST PERFORMERS
DAILY
COMPANIES
AMT
HIGH
LOW
2.89
2.52
Zale (ZLC)
-
1674689
2.61
2.37
LJ Intl. (JADE)
-
401072
2.40
-9.77
3.41
3.23
Wet Seal (WTSLA)
21.4
869091
3.23
-5.83
10.98
10.29
Bon-Ton (BONT)
-
185421
10.33
-5.75
4.73
4.42
Coldwater Creek (CWTR)
-
1007553
4.45
-5.72
2.12
2.06
Parlux Fragrances (PARL)
-
32000
2.06
-5.50
1.23
1.10
Frederick’s of Hollywood (FOH)
-
50192
1.13
-5.05
33.00
31.45
24.5
6979862
31.45
-5.04
6.17
5.82
Charming Shoppes (CHRS)
-
1739880
5.85
-4.72
9.94
9.51
Movado (MOV)
-
146975
9.54
-3.93
LAST %CHANGE
Avon (AVP)
2.53 -13.06
* 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.
Uptick in Jobless Claims Hurts Retail Stocks
By Evan Clark
RETAIL STOCKS DIPPED 0.8 PERCENT
Thursday as investors fretted over the
credit worthiness of Greece and an unexpected rise in U.S. jobless claims.
The S&P Retail Index slid 3.24 points
to 406.72 and the Dow Jones Industrial
Average gave up 1.3 percent, or 132.86
points, to close at 10,308.26. Ratings agency Standard & Poor’s cut Greece’s longterm sovereign credit rating to “BBBplus” from “A-minus” late Wednesday.
Dubai, which through its Istithmar investment vehicle owns Barneys New
York, has also had debt problems that
riled investors.
Global stocks traded lower Thursday
with the Hang Seng Index slipping 1.2
percent in Hong Kong, the FTSE 100 sliding 1.9 percent in London and the CAC 40
dropping 1.2 percent in Paris.
In the U.S., initial jobless claims
rose 7,000 last week to a seasonally adjusted 480,000, according to the Labor
Department. Economists were looking
for the number of people applying for
unemployment to fall to 465,000.
Shares of Sears Holdings Corp. rose
0.2 percent to $75.91 after the company’s
board approved a $500 million extension to its stock repurchase program.
Sears, which is led by chairman Edward
Lampert, also has $82 million remaining
under the existing buyback plan. As of
Wednesday, the retailer had bought back
7.1 million of its common stock for about
$423 million this fiscal year.
Shares of The Bon-Ton Stores Inc.
slipped 5.8 percent to $10.33, even though
Moody’s Investors Service boosted its ratings on $510 million of the firm’s debt.
Moody’s raised Bon-Ton’s corporate
family and probability of default ratings to “Caa1” from “Caa2.” The rating
outlook is stable. Moody’s pinned the
move on a new $75 million second lien
term loan and a $675 million senior secured asset-based revolving credit facility, both of which expire in 2013. The
new financing replaced a facility expiring in 2011.
PHOTO BY DELPHINE ACHARD
Step
into the
spotlight
FALL 2010 COLLECTION SEASON
NEW YORK
LONDON
MILAN
PARIS
DAILY COVERAGE IN PRINT & ONLINE: FEBRUARY 11 – MARCH 11
For more information on advertising, contact Christine Guilfoyle, publisher, at 212-630-4737, or your WWD salesperson.
14 WWD, FRIDAY, DECEMBER 18, 2009
Media/Advertising
The Female Factor in Evening News
Mizrahi believes that Sawyer has great fashion instincts.
“I know Diane, in just who she is — she is influential. The minute you put her on the 6:30 news,
she’ll influence fashion even if she’s wearing a black
crewneck. I think that she has the most incredible
instincts, more than any stylist could have for her.
She has an inner knowledge of how to present herself,” said Mizrahi. He said Couric and Sawyer “are
people who look put together and have a sense of
propriety, which is not in fashion anymore. Now
it’s fashionable to be over the top and have madcap
style. I like that for once you get restraint from these
girls, and it might help the cause.”
Retailers, too, are eager to get their merchandise on the backs of Sawyer and Couric.
“[Sawyer] embodies so many qualities of the Ann
Taylor woman — smart, chic, passionate, confident.
She’s a great role model with a fantastic sense of
style,” said Lisa Axelson, senior vice president of
design at Ann Taylor. “I personally would love to
see her in one of our chic power suits with a feminine top that adds a pop of color. She looks so good
in red. It’s great to see her join Katie Couric, another example of a female role model, in this highprofile position. We’d love to see these powerful
women in our new collections as they both embody
the chic, modern woman.”
By Lisa Lockwood
THERE’S A WHOLE NEW FASHION OPPORTUnity knocking.
As Diane Sawyer ascends to anchor of ABC’s
“World News” on Monday, going head-to-head with
Katie Couric at “CBS Evening News” and Brian
Williams at “NBC Nightly News,” there will be millions of eyes on them. Since this will be the first
time two women will be sole anchors of two of the
three major network news shows, there will be inevitable comparisons of their interview styles and
gravitas — not to mention their clothing, hairstyles
and accessories.
Granted, network evening news is a serious, albeit shrinking, business, and Sawyer and Couric (who
broke ground as the first female solo anchor in 2006)
have climbed to their roles because of their experience, smarts and popularity. But fashion watchers
believe given the two newscasts reach more than 14
million viewers each night, the anchors’ appearances are bound to be scrutinized and, in some cases,
emulated. And so Sawyer and Couric represent a
great opportunity for designers and retailers.
“These anchor ladies’ personal style is always
accessible glamour,” said Simon Doonan, creative
director of Barneys New York. “They won’t show up
wearing Balenciaga. They do have a big influence.
A lot of women don’t have the courage to look like
Daphne Guinness. Diane Sawyer is an achievable
goal for them.”
For companies targeting Baby Boomers, this is a
prime opportunity to showcase how their clothing
looks on professional working women. Sawyer is 63,
Couric is 52 and Williams is slightly younger at 50.
Last year, the median age of nightly news viewers
was 61.3 for all three evening newscasts, according to
Diane Sawyer
data from Magna Global USA, a media buying firm.
And advertisers may want to take a closer look
at this demographic. Women ages 50 and older have
more spending power and discretionary income
than any other group in the U.S. and wield a net
worth of $19 trillion, according to MassMutual’s
Financial Group 2007 report. In fact, for the 12
months ending Oct. 31, women over 55 spent $19 billion on apparel, according to The NPD Group Inc.’s
Consumer Tracking Service.
Whether the network news shows are the best vehicle to reach them is another story. Over the past
two decades, the evening news programs have experienced declining viewership. According to the Pew
Project for Excellence in Journalism’s “State of the
News Media 2009,” the drop in the three commercial
evenings’ newscasts slowed in 2008 to just 1 percent
— or 300,000 viewers — compared with about a million lost annually over the last 20 years. An analysis of Nielsen Co. data by Pew showed that in 2008,
a combined 22.8 million people watched the three
leading network programs each night, and 13.1 million watched the networks’ morning news shows.
In contrast, the top five cable networks (CNBC,
CNN, Fox News Channel, Headline News and
MSNBC) had a combined average prime-time audience (Dec. 31, 2007 to Dec. 14, 2008) of 5 million viewers, versus 4.7 million viewers for the period of Dec.
29, 2008 to Dec. 13, 2009, according to Nielsen Co.
For the current season (Sept. 21 to Dec. 13), “NBC Nightly News,” the number-one
rated program, had an average audience of 8.9 million viewers, up 91,000 from a year
ago; ABC’s “World News” with Charles Gibson had 8 million viewers, down 396,000
from a year ago, and third-place “CBS Evening News With Katie Couric” had 6.1 million viewers, down 281,000 from last year, according to Nielsen Co.
Even with the declining viewerships, designers and retailers are eager to dress
Couric and Sawyer, who both declined to be interviewed for this story.
“I plan to dress them. This is the year of the woman,” said Elie Tahari. “Both Diane
and Katie are wearing our clothes — quite often. We don’t send clothes to anybody.
They buy them.
“I think these two women are confident, dress smartly, are stylish, graceful, elegant
and modern,” he added. “It’s very good for business. [The broadcasts] go to everybody’s living room and women are looking at women — it’s stimulating for style and
fashion. With men, they’re in a suit and tie, and it’s boring.”
Michael Kors, whose clothing has been worn by Sawyer, observed, “Now that Diane
Sawyer is becoming an evening anchor, she and Katie Couric make women the majority on network evening news, not the minority. Just as we’ve seen politicians like
Nancy Pelosi soften up their look, I think we will see a more relaxed yet polished feel
become more prevalent with the new female majority.”
“Diane is an icon for me,” said Donna Karan, whose label was part of Sawyer’s onair wardrobe when she was on ABC’s “Good Morning America.” “She was one of the
first consistent voices in the forefront of news reporting. She always had a sense of
style, elegance and sophistication. She represents a woman of style and power.”
Isaac Mizrahi observed, “I really do think that they’re going to influence fashion. I
know every time I see Charlie Gibson and Tom Brokaw on TV I say to myself, �I have
no good ties,’ or when I see George Stephanopoulos: �He has great lapels. Why do
mine look so shoddy?’”
[The broadcasts] go to
“everybody’s
living room and
Katie Couric
women are looking at women
— it’s stimulating for style
and fashion.
”
— Elie Tahari
Marc GobГ©, president of Emotional Branding,
suggests the fashion industry work with broadcasters to leverage the power of these women. However,
he feels their conservative dressing isn’t good for
fashion, especially in a time of crisis like the one
the industry is in now. “We haven’t seen innovation from broadcasters for many years. It would
add some pep to their business. More people would
watch the news to see what the women were wearing, and it would be talked about in social media.
They would tell their friends. �Did you see the dress
she was wearing?’ Right now, it’s very conservative.
The fashion industry has got to make its case.”
Since taking over the evening news from her role
as co-host of NBC’s “Today” show, Couric has taken
on a more serious demeanor, tailoring her look and
hairstyle and making strides to lose her “America’s
Sweetheart” and “perky” reputation. As Sawyer
moves from “GMA” to “World News,” some observers believe she doesn’t have to become more conservative in her appearance, which has been described
as refined and ladylike.
“People are looking for more individuality and
expression; this can be an opportunity,” said Robert Burke, owner of Robert Burke
Associates, a consulting firm. “I think the old, more dated approach was that, if someone were to be fashionable, it might compromise their credibility, but that’s not the
case anymore. Now it’s one element of someone’s public persona and can help differentiate them.”
For years, women have taken fashion cues from what the morning TV show hosts
are wearing, whether it be a particular color, skirt length or an open-toe shoe.
Kors noted Meredith Vieira, co-host of NBC’s “Today” show, wears his designs on
air. “Everything from dresses and coats to sweaters and jackets. I think her relaxed
yet polished look resonates with American women because the look is chic yet approachable,” he said.
Tahari said Vieira has worn many of his pieces on the show, including a herringbone jacket. And Sawyer has worn Tahari’s black leather pencil skirt, python printed
skirt and printed trenchcoat on “GMA.”
Vieira, Sawyer and Couric’s styles are especially appealing to professional women over
35, said marketing experts. “I think those women are definitely iconic for Baby Boomers.
They’re extremely well respected, and their values are well respected,” said Kim Vernon,
president and chief executive officer of Vernon Co., a marketing and licensing firm. “The
way they look is conservative, and that’s what most women are comfortable with.”
Fashion designer Charles Nolan has seen firsthand the benefits of anchors wearing
his clothes.
“When I was at Ellen Tracy, we dressed Diane Sawyer a lot,” he recalled. “The only
thing good about the inauguration of George Bush was that Diane was wearing a red
coat of mine from Ellen Tracy. Her stylist bought a lot.
“Katie wears more fashion than most women in evening news,” said Nolan. “When
Katie was doing an interview, she wore a cropped-sleeve coat with long black gloves.
This tells all the women in America with a cropped-sleeve jacket what to do. Katie
MEMO PAD
Katie Couric
walks the red
carpet.
SAWYER ON SET PHOTO BY IDA MAE ASTUTE/ABC VIA GETTY IMAGES; COURIC ON
SET BY STEPHEN LOVEKIN/WIREIMAGE FOR TURNER; SAWYER RED CARPET BY
JASON KEMPIN/WIREIMAGE FOR TIME INC.; COURIC RED CARPET BY JOHN AQUINO
WWD, FRIDAY, DECEMBER 18, 2009 15
WWD.COM
IN MOTION: Fashion ad campaigns have
recently been loaded with prostrate
models. “I thought maybe we need a
bit of action,” said Lanvin’s artistic
director, Alber Elbaz. Cue the French
house’s women’s spring-summer
advertising, shot by Steven Meisel and
featuring Jamie Bochert in one heck of
hurry, rushing down a corridor in a New
York studio. “She moved so fast, even
the chandelier was moving with her,”
Elbaz said. Bochert was fully qualified
for the fast-forward campaign, as
Elbaz related that the model recently
Lanvin ad images.
pursued a purse snatcher for 12 blocks
in Brooklyn — and reclaimed her bag
from the thief. “That’s the kind of girl I like,” Elbaz said.
The designer also changed gears for the Lanvin men’s campaign, enlisting
photographers Inez van Lamsweerde and Vinoodh Matadin, who are a married
couple, to appear on the other side of the lens, as well. “He’s not our model,”
Elbaz stressed about Matadin. “We just photographed him in our clothes, and
it becomes very believable. Also, to see him through the eyes of his wife and
to see the love story between them — it’s a very emotional campaign.” Van
Lamsweerde left all fashion statements to her husband and appears nude,
her body airbrushed in red. “It took two hours to paint,” Elbaz noted. The
campaigns break in February fashion magazines. — Miles Socha
Diane Sawyer
on the town.
has gotten much more modern and forward. Her hair got angled
and more extreme. Her numbers aren’t great, but she looks really great.”
Still, there are people who believe fashion shouldn’t be a
concern on the evening news shows.
Madonna Badger, founder of Badger & Partners, a New York
ad agency, doesn’t feel people tune into the evening newscasts
for fashion trends, but rather they will watch Sawyer because of
who she is. “I think Diane Sawyer has always been a style icon.
She’s a woman of a lot of firsts. It doesn’t strike me that women
are really looking to news anchors for the latest styles, considering that hot fuchsia eye shadow at MAC is the best selling in the
country,” said Badger.
Diane von Furstenberg also doesn’t think having two female
news anchors will have much of an impact on the fashion world.
“I think it’s great for women,” she said. “Whether it’s great
for fashion, I don’t know.”
GROWING REACH: With 26 sites and counting, Hearst Magazines Digital
Media will launch a new vertical late next year that “is not one you’d expect
from us,” noted Chuck Cordray, senior vice president and general manager.
He added the URL already has been purchased but declined to provide
more information. Next summer, the digital unit also will relaunch its teen
network, which includes seventeen.com and teenmag.com.
And the digital space continues to attract new advertisers for Hearst,
with ad revenue up more than 20 percent year-over-year. Cordray said the focus for next year will be on the retail
category, which rose more than 50 percent this year. Cordray contended advertisers are coming to the Hearst
digital network because, among other things, the package of sites on which the ads will appear can be customized
depending on the audience a given brand wants to reach. “Ad networks usually can’t guarantee quality like
we can, and they will alter placements across their sites,” Cordray said. “The nature of our content means the
audience is very tailored.”
Meanwhile, the Web continues to be a greater source of subscriptions, with 3.3 million garnered this year versus
2.5 million in 2008. House Beautiful is one of the leaders, with more than 75 percent of subscriptions sold online.
Hearst magazine sites represent more than 40 percent of the total traffic in the digital network and 50
percent of its ad revenue. According to comScore for March through October, traffic across the total network
was up 33 percent, including food site Delish.com. Traffic at Cosmopolitan was up 1 percent, Marie Claire was
up 19 percent and Harper’s Bazaar was up 151 percent. Kaboodle, a nonmagazine site that focuses on fashion,
was up 66 percent. — Amy Wicks
WWD.COM/CLASSIFIEDS
For more career opportunities log on to WWDCareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise.
Spaces
FIT MODELS
Showrooms & Lofts
BWAY
7TH AVE
SIDE STREETS
Great ’New’ Office Space Avail
ADAMS & CO. 212-679-5500
DESIGNER
Girls’ special occasion dresses. Established co. is in search of experienced
designer for volume & boutique
market. Fax resume to: 213-747-4939
DRAPER WANTED
Major
eveningwear
manufacturer
seeks draper to work with designer to
create muslin/first pattern in domestic
sampleroom. Capable of working with
samplehands to create finished garments. Working knowledge of production techniques. Send resume in
confidence to [email protected]
Elie Tahari is look for 2 full time fit
models, one tops and one bottoms.
To be considered please send your
measurements, current photo and
resume to [email protected].
Additional
responsibilities
may
include assisting Design, Technical
Design, and Production on day to day
projects.
Required measurements are as follows:
For Tops:
H52.9A5F0B?CF and athletic body type
H inches in height, ideal size 6
H
inches across shoulder
H)'( 34.5-35.0 Cup B or C:
H+ '(
H!$+ HIP
For Bottoms: (pants/skirts)
Waist: 26 1/2" - 27", Hip: 1/2" - 39",
Thigh: 22" - 22 ВЅ"
PATTERNMAKER
Major women’s apparel mfg. located inBucks County, PA is seeking exp. pro
duction patternmaker that specializes
in missy and woman sizes. Candidate
must be experienced in all types of
garments and knowledge of garmentconstruction, knowledge of Lectra sys
tem a plus. Must have good communication skills, detail oriented, dependable, flexible and able to work in a fast
paced environment while maintaining
company fit standards. Email resumes
to [email protected]
PRODUCTION MANAGER
Luxury Golf Apparel Company seeks
Production Mgr. for our NY location to
assist VP with managing three better
Golf brands. Responsibilities will include but are not limited to: day to day
overseas
communication,
costing,
calendar and WIP management.
Experience with knits, woven’s and
outerwear preferred. Ideal candidate
has 5+ years knowledge in Production
Management and prior overseas travel.
Summit Golf Brands is a leader in the
golf apparel industry with a portfolio
consisting of three extraordinary
brands: Fairway & Greene, EP Pro and
Zero Restriction. We offer a competitive salary and benefits package. For
consideration please forward resume
with salary req.’s to:
[email protected]
No phone calls or walk-in’s please.
SALES REPS
NY Based established women’s wear
importer looking for experienced sales
reps to sell blouses, skirts, suits and
dresses. Moderately priced missy &
plus sizes. Experience with specialty &
chain stores required. Fax resume:
212-226-5324 or E-mail: [email protected]
SALES HELP WANTED
Leading ladies shirt manufacturer is
interested in highly motivated salesperson to fill a position for existing
and new business. Excellent benefits.
Email your resume to:
[email protected]
AMERICA’S COTTON PRODUCERS AND IMPORTERS. ® Registered Service Mark/Trademark of Cotton Incorporated. © Cotton Incorporated, 2006.
dateworthy
Special occasions. Or just a night out. Everybody looks forward to wearing
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