Page 1 Tuesday sACCESSORIES: David Yurman FASHION: s The … · 2015. 2. 18. · in a letter to ciT’s board, icahn said the loan would save the company $150 million in fees to prospective

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Sheer EnoughMaria Grazia Chiuri and Pier Paolo Piccioli’s spring collection for Valentino was intended, they said, to suggest “a fairy tale,” and it had a gossamer femininity that often involved transparency — one of the season’s most significant trends. Here, their peekaboo dress with asymmetric lace and metallic details. For more sheer looks, see pages 6 and 7.

Women’s Wear Daily • The Retailers’ Daily Newspaper • October 20, 2009 • $3.00

WWDTUESDAYReady-to-Wear/Textiles

See Brighter, Page 12

Turning the Corner: LVMH, Analysts SeeLuxe Rebound Near By Miles Socha and Luisa ZarganiWhile sTill faiNT, TheRe is lighT at the end of what has been a long and dark tunnel for the luxury sector.

That was the word from lVMh Moët hennessy louis Vuitton on Monday as it reported a 3 percent dip in third-quarter revenues and trumpeted improving trends in all its businesses versus the first half of the year. Meanwhile, Deutsche Bank issued a bullish profits outlook on luxury goods and, at a meeting in Milan organized by italy’s fondazione altagamma association, Bain & Co. predicted a full recovery of the market in the 2011 to 2012 period.

“september was better in retail, more or less everywhere,” lVMh chief financial officer Jean-Jacques guiony said on a conference

Page 1 TuesdayACCESSORIES: David Yurman unveils a new

look at Bloomingdale’s,

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RETAIL: Change is afoot on Michigan avenue in Chicago, page 9.

NEWS: l.K. Bennett

gets a luxe makeover,

page 5.

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FASHION: The latest

collection from Kate spade,

page 8.

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WWD.COM

Juergen Teller

WWDTUESDayReady-to-Wear/Textiles

By Vicki M. Young

AmericAn finAncier cArl icAhn, ciT Group inc.’s largest creditor, has offered the beleaguered lender an alternative option in the form of a $6 billion loan.

in a letter to ciT’s board, icahn said the loan would save the company $150 million in fees to prospective lenders, and would not force bondholders to vote for a revised debt exchange. icahn in his letter criticized the proposed $6 billion in a secured term loan being offered by the company as a “bad-faith attempt to buy votes for the company’s exchange offer/plan of reorganization, since all prospective lenders must vote their ciT debt in favor of the company’s plan in order to receive an allo-cation of the new loan.” he also chastised the proposed prepackaged bankruptcy plan because it would give the board “releases against certain claims that shareholders and bondholders would have against them.”

ciT in response said on monday that it intends to “ask mr. icahn for more information regarding his proposal.”

The lender to small businesses and middle-market companies added that, while it has developed a restruc-turing plan in consultation with a steering committee of ciT lenders, it “remains open to securing financing on the most beneficial terms.”

michael A. Gallo Jr., head of the finance group at the law firm Decotiis, fitzpatrick, cole & Wisler, noted icahn’s offer fails to address the restructuring plan.

“The whole purpose of the restructuring is to exchange some of the debt for equity so ciT wouldn’t have to repay it. if you’re trading one loan for another, you’re not accomplishing [any re-structuring], just pushing off the [debt] obligation to another time,” Gallo said.

harold p. reichwald, co-chair of the banking and specialty finance law practice group at manatt, phelps & phillips, added, “ciT still needs to find a way to finance its ongoing activities, given that it currently cannot access the commercial paper market.”

separately, ciT said monday in a securities and exchange commission filing that even with its debt swap in place, it might still file for chapter 11 protection.

in the regulatory filing, which includes the proposed pre-packaged plan, the lender said only ciT Group inc. and its canadian unit, Delaware funding, would file, leaving the firm’s operating divi-sions out of the proceedings. ciT also said that it could file a motion asking the court to authorize its continued funding of loan commitments, factoring and other services during its bankruptcy.

The company added that under the prepackaged deal, it expects to emerge from chapter 11 in two months after such a filing.

— With contributions from Matthew Lynch

A Dress33 look for spring.

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Carl Icahn

WWD, TUESDAY, OCTOBER 20, 2009

By Alessandra Ilari

MILAN — men with a soft spot for roaring engines can now extend that passion into jewelry.

ferrari, maserati and Ducati have teamed up with Damiani to launch three collections that in-clude jewelry, small gift items, desk pieces and gadgets. All three licensing agreements are valid through 2012.

The deals are further evidence of how Damiani is looking to strengthen its position in the fine jewelry sector by broadening its licens-ing portfolio, which currently counts Jil sander, Gianfranco ferrè and martin margiela.

“many of the specialty stores we deal with told us that women complain they can’t find jew-elry gifts for men so we believe we can develop this area,” Guido Damiani, chairman and chief executive officer of Damiani, said of the licenses with the three famed italian motoring brands. “Also, these projects are a low-cost way for us to exploit our synergies and vertical and multit-iered structure.”

ninety-five percent of Damiani’s 2008 revenues of 150 million euros, or $221 million, hail from women’s products.

it’s coincidence the three deals were com-pleted at the same time, Damiani said, and the new collections will all be unveiled at the end of march.

The collections will have different product assortments and pricing, he said.

The selection at ferrari, for example, ranges from silver and gold cufflinks to money clips to gold bracelets adorned with charms in the shape of steering wheels, turbines and tires. on a more expensive side is a diamond pendant shaped like the automaker’s iconic prancing horse logo.

Gift items, namely paper cutters, desk sets and paperweights, in silver and leather, are also part of the offering. “ferrari is the most exclu-sive italian brand, it’s aspirational and will also

attract women,” said Damiani. Average retail prices go from 200 euros, or

$295, to 500 euros, or $737, and climb to 2,000 euros, or $2,949, for diamond-sprinkled pieces.

A similar lineup will characterize maserati’s line, highlighted by steel cufflinks with a sin-gle, tiny diamond priced at 150 euros, or $221, at retail.

The Ducati collection targets a younger cus-tomer of bikers and fans with gold, silver or steel bracelets, key chains and gadgets that pertain to the world of motorcycles.

Between the Damiani-owned multibrand rocca stores, the ferrari stores and specialty stores, Damiani expects to secure 2,000 doors in the first year for the ferrari collection. A similar number is budgeted for both maserati and Ducati.

Damiani declined to disclose a first-year sales projection but said the projects should rake in “tens of millions of euros.” he added that to-day’s volatile economic climate makes it difficult to predict how a project will evolve.

in other Damiani news, the company will open stores in Beirut and singapore by year-end and Damiani said he is talking to several designers about future ventures, but declined to reveal details.

Damiani Revs Up With New Licenses

Carl Icahn Offers CIT $6 Billion Loan

WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.VOLUME 198, NO. 82. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in March, April, June and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

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6FASHIONFrom diaphanous pajama pants to a sheer, floor-length dress over lingerie with gold lace, see-through looks made their mark for spring.

GENERALWhile still faint, there is light at the end of what has been a long and dark tunnel for the luxury sector.

Ferrari, Maserati and Ducati have teamed with Damiani to launch three collections featuring jewelry, small gift items, desk pieces and gadgets.

David Yurman plans to open in-store shops across the globe, including a prototype being unveiled Thursday at Bloomingdale’s New York flagship.

TEXTILES: Buyers at the GlobalTex trade show in Los Angeles sought high quality and sustainable fabrics to give their products an edge.

Art Imig’s Clothiers, the Sheboygan, Wis.-based men’s store that offers services such as dry cleaning and tailoring, is celebrating its centennial.

EYEFrom gallery booths to glam parties, London’s Frieze Art Fair, which wrapped up this past Sunday, was about serious collecting.

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TODAY ON

.comWWD• Japan Fashion Week coverage kicks off including runs of show

and Scoops from Tokyo • More images from the Kate Spade preview

• L.A. Fashion Week coverage: Runs of show and reviews

• More images from London’s Frieze Art Fair, the David Yurman in-store

shop at Bloomingdale’s, Michigan Avenue and L.K. Bennett

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The selection at Ferrari includes gold bracelets

adorned with charms in the shape of steering wheels,

turbines and tires.

“There were pieces for real collectors. It

wasn’t full of hedge funders running around saying, ‘I want that and I want that.’”

— Becca Cason Thrash, on the scene at the Frieze Fair. Page 4.

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QUOTEDAILY

• The G-iii Apparel Group ltd. owns the Andrew marc brand. That status was misidentified in an article on page 8, oct. 13, due to misinformation from the company.

• clive christian designed the bags for his namesake firm’s new collection, not his daughter Victoria christian, who acts as “brand ambassador” for the line. This was incorrect in an item on page 6 in the WWD Accessories supplement on monday.

OUTSTANDING

Source: Scarborough Research, New York market, 12 months ending 2009 r1

*Sunday Edition

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IF THERE WERE A NOBEL PRIZE FOR DINING ROOM diplomacy, then Jesus Adorno, the longtime manager of London’s Le Caprice restaurant, would easily be the winner. For nearly three decades, the smooth, 56-year-old Bolivian has been catering to high-profi le, often fi nicky diners — including the Duchess of Cornwall, Maurice Saatchi, Julian Fellowes and the late Princess Diana. Now he’s ready to work his magic in Manhattan.

Starting with a party tonight for Vogue’s “The World in Vogue” book, Adorno will launch the restaurant’s fi rst foreign outpost at Manhattan’s The Pierre hotel. It opens

to the regular dining public next week , and will begin accepting reservations in the second week of November.

Adorno, a director of the privately held, London-based Caprice Holdings Ltd., has been crisscrossing the Atlantic for the past few months in preparation. He says he hopes to re-create the British original’s sophisticated but simple dining experience, complete with a piano player and a jolly, liveried man posted outside the revolving door.

“I think of Le Caprice as a good pair of old slippers,” he explains in his singsong Spanish accent.

Here, Adorno speaks about the restaurant’s menu and how he handles both customers and food critics.

— Samantha Conti

WWD: Why are you taking Le Caprice to New York?Jesus Adorno: It’s an easy restaurant to transport, and a lot of our regular customers in London are New Yorkers. And it’s been my dream for a very long time; I see it as a wonderful challenge. I want to start humbly and gently in New York, and make Le Caprice a success there.

WWD: Have you made any changes to the menu for your American customers?J.A.: Most of the menu is the same. It’s well-executed comfort food like Thai-baked sea bass, steak tartare, crispy duck,

dressed Dorset crab with celeriac rémoulade, fi sh cakes with sorrel sauce and eggs Benedict. There are defi nitely more salads, though. I want to adjust to what Americans want.

WWD: What’s your biggest pet peeve in the dining room?J.A.: I hate saying “no” to a customer who calls to book a table. If I have to do it, I say it with passion, so they understand I’ve done my best. And I always look at every angle of the room to see if I can squeeze someone in. If I happen to fi nd a place, I consider it a battle won.

WWD: Many years ago, one London critic referred to you as a “glorifi ed waiter.” What did you think of that?J.A.: I don’t give a damn what they call me! If the critic had said Le Caprice had gone downhill, that would have really hurt. For me, it’s all about the restaurant, customers and staff. And I still think of myself as a waiter. I still serve food, clear tables and open bottles of wine. If I see the staff sweat, then I sweat as well.

Le Caprice, 795 Fifth Avenue, 212-940-8195

WWD.COM4 WWD, TUESDAY, OCTOBER 20, 2009

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FROM GALLERY BOOTHS TO GLAM PARTIES, THE FOCUS AT London’s Frieze Art fair, which wrapped up Sunday at Regent’s Park, was on serious collecting. A Louise Bourgeois sculpture, “The Couple,” went for $3.5 million; Neo Rauch’s “Harmios” sold for $1 million, and John Baldessari’s “Beethoven’s Trumpet (with Ear) Opus 133” sold for $400,000.

“We closed a lot of deals — and I’m very happy about that,” said Thaddaeus Ropac, who represents artists including Andy Warhol, Georg Baselitz and Alex Katz. “Compared with past years, collectors are being really thoughtful and measured about what they are buying. They’re not making snap decisions.”

Elke Seebauer of Victoria Miro in London, which represents Conrad Shawcross, Grayson Perry and Chantal Joffe, said the market has recovered from last year’s credit-crunch shock. “There’s a lot more confi dence out there.”

The enthusiastic mood carried over to the slew of fetes marking the event. Things kicked off with a dinner hosted by Finch’s Quarterly Review that drew Nicky Haslam, Jonathan Yeo, Elettra Wiedemann and Charles and Sydney Finch to restaurateur Nick Jones’ hip new Italian restaurant, Pizza East, in Shoreditch. By Thursday night’s Cartier affair at Scott’s, Tracy Emin, Dinos Chapman, Phoebe Philo, Juergen Teller, Lady Helen Taylor, Matthew Slotover and Amanda Sharp were swapping art fair survival strategies over Champagne and fi llet of wild turbot.

“I like to play the ‘What would I buy with one million pounds?’ game when I walk round,” said Emily Oppenheimer. “Grayson Perry’s tapestry is on my list.”

A few streets away, Frieze was the topic of discussion during a dinner at Claridge’s celebrating Dennis Basso’s new boutique at Harrods. Hosts Rena Sindi, Tamara Beckwith and Serena Boardman mingled with Princess Marie-Chantal and Prince Pavlos of Greece, Tamara Mellon, Becca Cason Thrash, Jamie Tisch, Margo Stilley and Lillian von Stauffenberg. Cason Thrash, for one, was happy about the fair’s seeming infl ux of new blood.

“There were pieces for real collectors. It wasn’t full of hedge funders running around saying, ‘I want that and I want that,’” she said.

Fun Fair

GOOD TASTE

David Adjaye and Phoebe Philo

Tamara Beckwith, Rena Sindi, Dennis Basso and Serena Boardman.

Elettra Wiedemann Jamie TischJamie Tisch

Charles and Sydney Finch

Will Turner and Emily Oppenheimer

Princess Marie-Chantal of Greece

▲ Juergen Teller

FASHION FOLK HAVE A THING FOR TILDA SWINTON, AND FINALLY Swinton is in a fashion-driven fi lm.

“Io sono l’amore” (“I Am Love”), due in theaters this spring, is coproduced by Silvia Venturini Fendi and stars Swinton as a well-heeled woman of Russian descent who marries into a wealthy and powerful Italian clan. (This being Swinton, everything is not as it seems. Her character ends up in a steamy affair that has tragic repercussions for the family.) Costume designer Maria A. Cannarozzi dressed Swinton exclusively in Jil Sander dresses, suits and coats in rich hues to help set the tone. “This is a woman who marries into a very particular milieu, a very strict world, and she needs a uniform,” said Swinton after showing the fi lm at Soho House on Friday to an audience including Bruce Weber, Tony Gilroy, Justin Bond, Italo Zucchelli, Allison Sarofi m, Jim Jarmusch and Waris Ahluwalia.

Swinton continued, “Her mood is indicated by colors, but her silhouette is always slightly hidden. You never really know what shape she is or what real body she has until she takes her clothes off.”

The actress was equally enthusiastic about the frock she donned for the screening — a short black number with zippers on the hems and sleeves — but not as well versed. “That’s a really good question,” she said when asked who designed it. “It’s by some unnamed, rad English designer who sent it to me. I don’t know.” But the coat she wore over it was Jil Sander.

Jesus Adorno

A rendering of the new Le Caprice in New York.

Tilda Swinton wearing a Jil Sander coat and

an Hermès bag in “Io sono l’amore.”

WWD.COMWWD, TUESDAY, OCTOBER 20, 2009 5

By Sophia Chabbott

DaviD Yurman is making a statement at retail — anD a global one at that.

the manhattan-based jewelry and watch firm has plans to open a smattering of in-store shops across the globe, representing its first retail endeavors in europe and the middle east. the in-store boutiques represent a new design for Yurman and will offer consumers a glimpse of what the company’s new 6,000-square-foot madison avenue flagship will look like ahead of its projected april unveiling.

the first such concept, created by designer David Yurman and architec-tural firm gabellini sheppard, will officially open thursday at bloomingdale’s 59th street flagship. the 1,000-square-foot in-store shop has a ceiling of el-egant wooden planks, american black walnut-wood floors and backlit cases to display all the brand’s product categories, including women’s and men’s jew-elry and watches, eyewear and fragrance. in addition to the 59th street shop, Yurman has inked a deal to open a similar concept in bloomingdale’s Dubai store slated to open this spring.

“as we continue to expand globally, it’s important to strive to be innovative,” said Carol Pennelli, ex-ecutive vice president of sales and marketing at David Yurman. “this is a first step in that di-rection.”

Yurman will also partner with Parisian retailer Printemps for a similar concept, slat-ed to bow this spring. other in-store bou-tiques within top-tier specialty stores are in the works for london and amsterdam, in ad-dition to opening free-standing David Yurman boutiques globally.

“the traditional european customer is ready for the de-sign aesthetic of David Yurman,” said Pennelli, who noted the brand has been advertising across europe, asia and the middle east.

Yurman, which has 15 freestanding stores in the u.s., as well as distribution in specialty stores such as neiman marcus, saks Fifth avenue and bloomingdale’s, opened four shops in asia and one boutique within the tsum store in moscow last year.

the shop at bloomingdale’s is a part of the ongoing redesign of the retail-er’s main floor. the space has a minimalist feel, using natural materials such as black marble for the floors, and sheets of bronze and brushed stainless steel throughout the shop.

“[Yurman] is great fashion; they have terrific aesthetics,” said Francine klein, executive vice president and general merchandise manager for fashion accessories, intimate apparel, cosmetics and fine jewelry at bloomingdale’s. “our customers love new and love the best. For us to have a shop-in-shop like nowhere else in the world is what our consumer is going for.”

Yurman’s neighbors at the flagship include louis vuitton and Chanel.Yurman will update some in-store boutiques with the new design and there

are plans for another in-store shop in bloomingdale’s in santa monica, Calif., in the coming months. the company, which is said to have more than $720 mil-lion in annual sales, declined to offer a projection for the 59th street shop.

“the energy is amazing,” said founder and designer David Yurman of bloomingdale’s main floor.

Yurman directed the merchandising of the shop and added several one-of-a-kind pieces to sell there.

“it speaks to what our brand is about and where our brand is going,” added Yurman. “it’s not just a shop-in-shop. it’s one of the more important stores globally. When you come to new York, you come to bloomingdale’s. it’s an event.”

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By Samantha Conti

LONDON — robert bensoussan is aiming to transform l.k. bennett, the premium british ready-to-wear and accessories line worn by customers as diverse as kate moss and the Duchess of Cornwall, into an international success — much like he did with Jimmy Choo.

last year, bensoussan’s sirius equity and Phoenix equity Partners purchased the 20-year-old brand and retailer from its founder, linda bennett, for an estimated 75 million pounds, or $124 million at current exchange.

since then, bensoussan has been build-ing a new management team and planting what he hopes are the seeds of transforma-tion from a conservative high street brand known for its basic wardrobe pieces into a design-driven international label with a luxury twist.

He’s drafted margaret mcDonald, the former gap inc. executive who launched banana republic in europe, as chief ex-ecutive officer, and annick gorman, for-mer fashion direc-tor at Celine who has held creative posts at Cacharel and galeries lafayette, as the cre-ative director.

bensoussan, whose title is executive chair-man, has revamped the design, sourcing and merchandising teams, and recruited Jimmy Choo veterans alison egan and tara ffrench-mullen, as, re-spectively, chief finan-cial officer and head of operations, and com-munications director.

“linda left us a com-pany that still makes a lot of money, but there is opportunity to grow. right now, 98 percent of revenue comes from the southeast of england,” said bensoussan.

annual sales are 65 million pounds, or $107 million, split evenly between clothing and accessories, and about 60 percent of the rtw business comes from dresses.

l.k. bennett has 51 wholly owned stores as well as concessions in department stores such as selfridges, House of Fraser and Fenwick, for a total of 104 units overall. bennett herself still owns just under 30 percent of the busi-ness, and is a member of the board.

“our plan is to upgrade every part of the business — and put value back into the product,” said bensoussan, who’s tapped tiziano vudafieri, architect of the Jimmy Choo stores who also has worked with brands including gianfranco Ferré, tod’s, Hogan and sonia rykiel, to redesign the stores. the first new concept store will open

on king’s road in london in november. the mood is “refined glamour,” according to the company. the color scheme is a soft powder pink, and the stores feature woolen rugs, midcentury-modern swedish sofas and glass chandeliers.

the average new store size is 2,000 square feet, and the design features sepa-rate areas for clothing and footwear. the first ad campaign under new management has been shot by Horst Diekgerdes, whose work has appeared in Dazed & Confused, numero and H&m magazine. the com-pany’s Web site will be relaunched in mid-January with the spring collection.

Prices range from 140 pounds, or $230, to 160 pounds, or $264, for shoes; 180 pounds, or $297, to 200 pounds, or $328, for a dress, and 250 pounds, or $413, to 350 pounds, or $578, for a coat.

mcDonald said the goal is for l.k. bennett to play in the same arena as brands such as max mara and Joseph. she wants

to make the product “less basic and more design driven,” and give customers the chance to buy a broad range of day, evening and occasion wear.

there are also plans afoot, she said, for a second, higher-priced line, although she declined to give details.

l.k. bennett has never had a whole-sale business, and bensoussan said he plans to change that, as well. He has his eye on the u.s. market, which he believes is the right place to take the brand. “We love america. our biggest vat [value-added tax] returns by far are from the u.s. customers. the u.s. is

definitely part of our plan,” he said.bensoussan, an industry veteran who

has worked with companies including Christian lacroix, gianfranco Ferré, burberry and Joseph, oversaw the success-ful international retail rollout of Jimmy Choo, among other strategies. by the time he left his post as ceo in 2007, that compa-ny’s sales were 85 million pounds, or $167.5 million, and the brand had nearly 80 stand-alone stores. He remains a shareholder and board member of Jimmy Choo.

For l.k. bennett, europe likely will be the first port of call — it already has a store in Paris on the rue de grenelle — followed by asia and the u.s. international expan-sion will begin in the fall of next year, and bensoussan said he’s considering franchise agreements for stand-alone stores as well as wholesaling to department stores.

By Katya Foreman

PARIS — the state of health of French fashion’s savoir faire is under analysis by the government. a report by French sena-tor Catherine Dumas tabled monday at the Hôtel de matignon here recommends how to preserve and develop the country’s artisans.

among 20 proposals are the launch of a national campaign to promote France’s métier d’arts; the creation of a certifica-tion system guaranteeing methods of fab-rication on products, and the creation of a ministerial department dedicated to a sec-tor which in 2004 generated global sales of around 7.8 billion euros, or $9.7 billion at average exchange for the period, and in-volved some 37,000 small firms.

the indirect contribution of artisan firms to France’s economy, as the “essence” of its luxury sector, is far more significant, the report states. France boasts the world’s

fourth biggest luxury goods market, repre-senting sales of some 22.4 billion euros, or $33.4 billion at current exchange, of which 82 percent is exported.

other priorities outlined in the report, meanwhile, include combatting counterfeit goods; introducing “favorable” tax reduc-tions for firms in the savoir faire sector, and recruiting and training “tomorrow’s artisans.” the sector today suffers from a general “disaffection for manual trades,” the report laments.

elisabeth Ponsolle des Portes, chief executive of luxury goods group Comité Colbert, applauded the move as “encourag-ing” and described establishing “dynamic export channels” for France’s savoir faire as paramount.

Comité Colbert represents 70 mem-bers of France’s luxury industry spanning from chocolate to high jewelry. these in-clude Hermès, baccarat, Cartier, Chanel and longchamp.

Yurman Opening at Bloomingdale’s Bensoussan’s Big Plans for L.K. Bennett

French Propose Ways to Aid Industry

David Yurman’s in-store boutique at Bloomingdale’s 59th Street.

A look from L.K. Bennett

Jewelry on display at Yurman’s in-store Bloomingdale’s shop.

For more images, see WWD.com.

6 WWD, tuesDay, october 20, 2009

Transparent ThingsTransparent ThingsFrom diaphanous pajama pants to a sheer, floor-length dress over lingerie, see-through looks made their presence felt for spring.

From diaphanous pajama pants to a sheer, floor-length dress over lingerie, see-through looks made their presence felt for spring.

Miu MiuChristian Dior

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Deborah LLoyD’s inspiration for her spring collection for Kate spade was, as she put it, “If you took the train to the end of the line and ended up in Coney Island.” The result was a playful retro-chic line that harkened back to simpler times. and who doesn’t need a little levity these days? There was plenty of that: dresses in whimsical sunglass prints, along with tweed jackets and striped sweaters done in a faded red, white and blue color palette that recalled the boardwalk. There were neon chiffon tops and dresses, too, reminiscent of the lights on the teacup ride and Ferris wheel. There were also great accessories — multicolored, oversize woven leather bags, faceted-gem clutches, charming colorful bauble necklaces as well as bright flats and high heels in color blocks and with adornments.

Back to the Boardwalk

CHARGED UP: The Manhattan District attorney’s office added a host of charges and an additional victim in its electronic spying case against former Dolce & Gabbana publicist Ali Wise on Monday. at a late morning hearing in New york criminal court, a prosecutor said Wise now faces four counts each of computer trespass, eavesdropping, computer tampering in the fourth degree and aggravated harassment in the second degree, and one count of stalking in the fourth degree. Wise was arrested in July for allegedly using a service named spoofCard to hack into the voicemail account of interior designer Nina Freudenberger. Later that month, Dolce & Gabbana said the publicist was no longer with the company, but did not elaborate. Wise initially was charged only with one count each of computer trespass and eavesdropping, both Class e felonies that can carry a prison sentence of up to four years. The other new charges are misdemeanors. In a revised criminal complaint, prosecutors allege Wise used spoofCard, which can bypass voicemail security, more than 1,000 times between april 2006 and June 2009. The complaint accuses Wise of targeting one victim’s phone number at least 337 times and another’s 137 times and of overhearing and deleting messages on the accounts. Wise arrived in court Monday in a black overcoat and red-soled Louboutins. she didn’t speak at the hearing, which was so brief the New york Post’s sketch artist was still shading Wise’s blonde locks 10 minutes after she left. outside the courtroom, her attorney, Edward Kratt, avoided most questions but said spoofCard shouldn’t be considered computer tampering. Wise is due back in court in January.

PRE-FUNK: In anticipation of last night’s Whitney gala, the co-chairs of the Whitney Contemporaries joined forces with Vogue and threw a party at Moschino on Wednesday. hosts including Maggie Betts, Coco Brandolini and Harley Viera Newton mingled among guests at the Meatpacking District boutique and admired artist Ryan Humphrey’s exclusive window installation titled “Darkness at sunrise.” The artwork will be on display through the end of the month.

LOG IN: Designer Alexis Mabille has joined forces with mythic Paris tearoom angelina (which has served as stage for many of his fashion shows) to create a limited edition Christmas log. Developed with angelina’s head pastry chef Sébastien Bauer, the quirky dessert, which boasts a quilted surface dusted in cocoa powder, a silver bow and edible studs, will be unveiled at the cafe tonight along with a range of new angelina pastries. The log will be available for order from angelina from Dec. 21 to 26.

POSH PORTS: The thundering percussion of bongo drums drew revelers into the Ports 1961 showroom in Chelsea on saturday night, where LIM Fashion education Foundation honored Vanessa Williams at their second annual Fearless event. event chair Michael Palladino, a LIM College adjunct professor and FeF board member, said he selected Williams for both her courage and her humility. “When Vanessa walks in the room, she commands the space she’s in, but she never takes from your space,” he said. Designer Stephen Burrows, “Ugly betty” cast member Judith Light and stylist Pat Field were also in attendance to fete the entertainment denizen. Field noted an overlap of Williams and her portrayal of fearsome fashionista Wilhelmina slater. “Vanessa has a very strong and positive presence. she is a fearless person, and she injects that into Wilhelmina.” Williams, dressed in black Carmen Marc Valvo, attributed her fearless conviction to “a thrill-seeking gene. The people that I come from are outspoken and driven and not afraid to take chances.” Proceeds from the Fearless event benefit the Fashion education Foundation, which provides scholarships for LIM students. This year, LIM FeF awarded $40,000 in scholarships to about 25 students, which range from $1,000 to full tuition. Ports 1961 president Jacquelyn Wenzel is an alumna of LIM and serves on the board of directors and is vice president of FeF.

JAPAN’S TOP MODEL: Japan Fashion Week kicked off sunday with a special event aimed at finding new modeling talents

in asia. “The Models 2009” featured a fashion show in which 142 contestants — both professional and amateur models from Japan, China and south Korea — walked the runway in their own self-styled looks. a 21-member panel, including Ai Tominaga and a host of photographers, fashion editors, designers and other industry insiders served as judges. “Photographers look for people they would want to photograph; designers look for people they

would want to wear their clothes....as for me, when it came to the male models, I was looking for people that I’d like to be photographed with,” Tominaga joked. Ten winners were chosen, while the Japan subsidiaries of Chanel, hermès and Giorgio armani also awarded their own prizes to their runway favorites. “When judging for the Chanel award, I was thinking, ‘If that particular person was wearing Chanel, how would she look?,’” said Richard Collasse, president and representative director at Chanel Japan. Teruo Tsuneda of Mainichi Newspaper, the event’s co-sponsor, noted organizers planned to make this a regular event, and hoped to secure cooperation from Chinese and Korean media in order to better showcase the talents of asian models to the world.

ANNIVERSARY IN RIO: Melissa, the plastic shoe company that seems to have developed collaborations with nearly every major designer over the last few years, is celebrating its 30th anniversary with a blowout on oct. 27 in rio de Janeiro (the company is based in brazil). The company has rented a colonial home overlooking Guanabara bay for the occasion, within which different exhibits will be set up to showcase previous collaborations, notably one with Zaha Hadid, as well as the history of the brand, and the way in which the shoes are made. (a machine will be brought in to create miniature samples of the shoes.) For those without an invite but eager for a backstage glimpse, there’s plenty of time: The exhibit, titled “Melissa eu! Celebrating 30 years of dreams in plastic,” will be open to the public for three weeks following the party.

ZEGNA’S NEW REALM: a hip, young crowd gathered in hong Kong’s neon-bathed Tsim sha Tsui on Thursday to enter ermenegildo Zegna’s new 7,300-square-

foot Global Concept store designed by Peter Marino. In town for the celebrations, chief executive officer Gildo Zegna persuaded the store’s staff to open the doors a little earlier than expected to accommodate the shoppers peering in with their noses pressed against the glass. “The Nineties were all about the U.s.,

which is still important, but now it’s time for this part of the world,” said Zegna, adding the company expects to post a 30 percent jump in sales in asia this year. Thinking ahead to the company’s centennial next June, Zegna said plans are in place for a 10,000-square-foot Global Concept store in Las Vegas and another store at Lippo Centre shanghai, which will feature a special retrospective exhibition.

CHANEL FIX: The Paris movie theater may be showing “Coco before Chanel,” but bergdorf Goodman next door is tipping its hat to Chanel at, well, Chanel and beyond. a special “secrets of the Chanel Jacket” installation has just gone up at the specialty store’s second floor, telling the story of the iconic jacket’s creation, with archive pieces as well as handbags and accessories on view. among the archival pieces on display from today to Friday are vintage haute couture and ready-to-wear jackets from 1961 through the current collection, as well as two handbags that belonged to the namesake designer herself. archival photos of the likes of romy schneider, Vanessa Paradis, Anna Mouglalis and barbie wearing the jacket further the message. bergdorf’s has devoted three of its Fifth avenue windows to the house, featuring props such as an oversize quilted handbag, a Chanel No.5 bottle and a large, quilted jacket.

Looks from Kate Spade for spring.

For more images, see WWD.com.

The competing models on the runway.

Vanessa Williams

Gildo Zegna

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By Beth Wilson

CHICAGO — Luxury labels have some new company on the Magnificent Mile here, with recent entrants such as Best Buy, Zara and Forever 21 adding a dose of the mall.

Michigan Avenue, which is believed to generate the most foot traffi c of any shopping street between New York and Las Vegas, has a reputation as the Midwest’s leading high-end address, home to Chanel, Gucci and Cartier, among others. Those brands still stand tall on the avenue, but they now count among their neighbors chains found at many regional shopping centers.

Although many national and international brands still seek space on the Magnifi cent Mile — Michael Kors Collection is opening this month — some high-end design houses such as Prada, Yves Saint Laurent and Jimmy Choo have opted for smaller spaces along Oak Street, a more exclusive side street off Michigan Avenue that has lower rents.

“At one time it [Michigan Avenue] was purely car-riage trade shopping,” said Bruce Kaplan, senior vice president of the real estate company CB Richard Ellis, noting that when Best Buy replaced men’s retailer Paul Stuart in the Hancock Center in May, “people thought the sky was falling.”

“We’re definitely seeing a shift,” added Kaplan, who re-cently surveyed vacancy rates on Michigan Avenue, which have risen to 7.2 percent this year from 6.3 percent last year. “It’s been subtle but important.”

As part of the thoroughfare’s evolution, Tiffany & Co. now sits next to a new 18,000-square-foot Victoria’s Secret and its pink facade, which opened this week. Saks Fifth Avenue will be joined at the Chicago Place mall by the nation’s largest Zara, a three-level, roughly 35,000-square-foot space set to open Oct. 30. Doors away, fast-fashion re-tailer H&M sits around the corner from Ralph Lauren.

The changes under way on the Magnifi cent Mile mirror trends affecting the entire industry that have been triggered by the recession, such as the popular-ity of mixing high-end items with those in the moder-ate and mass categories. First Lady Michelle Obama, a Chicagoan, has helped to push in this direction, wearing designer clothes as well as J. Crew.

“The street has a cachet that will remain,” said Kaplan, adding that although the per-capita spending on Michigan Avenue has decreased, a subsequent increase in traffi c and overall spending has more than made up the difference. He wasn’t able to provide statistics.

In addition, the Magnifi cent Mile has been able to

broaden its appeal to tourists, as well as shoppers of varying ages and income levels, said

Kaplan and other real estate brokers.“Michigan Avenue is going to become more eclec-

tic,” he said, noting that luxury shoppers now have more options. “They can still shop at Armani and shop at Ralph Lauren and buy a GPS at Garmin for their yacht or airplane.”

Amid the changes, a notable fashion component re-mains, said Lorraine Adney, broker and vice president of McDevitt and Co., referencing the infusion of retail-ers such as Forever 21, H&M and Zara. “It’s just young-er, faster and less expensive.”

Men, in particular, have wider choices, said Keven Wilder, a Chicago retail consultant, pointing to Magnifi cent Mile fi xtures such as the Apple Store, Niketown and Best Buy, where Kaplan recently noticed six-deep lines at all the cash registers on a Tuesday afternoon.

In turn, the street’s shoppers have become more diverse.

“It’s become more international,” said Kaplan, who added that those who stroll down Michigan Avenue often hear a multitude of languages. Tourists are “at-tracted to all of the stores,” whether luxe or moderate, he said, citing the Original Levi’s store at 600 North Michigan as an example. “We take Levi’s for granted, yet it’s full of Europeans.”

The change also has allowed Michigan Avenue to keep moving forward in this economy, as the lust for luxury has softened.

Adney said that although the Magnifi cent Mile retains its appeal, the real estate market there can be problem-atic because of the predominance of extra large retail space, along with high costs.

Rents along Michigan Avenue have not been as se-verely discounted as in other cities because the prices were not overly infl ated, said Adney.

In its heyday, as recent as the fi rst part of 2008, rents hit $500 a square foot, and have since leveled to $400 a square foot, Adney said. “We didn’t have the exponential rent increases that New York or Los Angeles did,” she said, noting that 10 years ago space on the boulevard sold for $300 a square foot.

In comparison, rents on Fifth Avenue in the Fifties in Manhattan are between $1,500 and $1,800 a square foot, down from $2,500 a year ago, according to Faith Hope Consolo, chairman, retail leasing, marketing and sales di-vision of Prudential Douglas Elliman Real Estate. Rents on Manhattan’s East 57th Street are $900 to $1,000 a square foot, down from $1,200 to $1,500 a year ago, she said.

In recent years, some luxury retailers have opted to open their Chicago stores on Oak Street. With its collec-tion of converted town homes, Oak Street offers a more boutique-y feel, lower rents — landlords are asking $300 a square foot for prime street level space — and the availability of smaller retail spaces, a rarity along Michigan Avenue.

“There is a certain percentage that doesn’t want to bump shoulders with tourists and hoi polloi,” Kaplan said. “Those people will feel comfortable on Oak Street.”

In recent months, Oak Street’s upscale atmosphere has extended farther west with Barneys New York open-ing a 90,000-square-foot space at Oak and Rush streets. The majority of its former space across the street is still vacant, although Hermès plans to take over part of it. In addition, local brokers see the potential for luxury retailers to spill onto Rush Street, where the new Marc Jacobs Collection store is set to open early next year, joining local specialty stores Ikram and Jake. Rents on Rush Street are similar to those on Oak at less than $300 a square foot, Adney said.

A revived State Street, which is west of Michigan Avenue, with the bulk of its shopping corridor closer to the Loop downtown and Chicago’s theater district, also provides a viable, cheaper alternative to Michigan Avenue. On State, the highest rents are about $150 per square foot, Adney said.

WWD.COM

Michigan Avenue Gets Mall FlavorReady-to-Wear Report

Ready-to-Wear Report

Upscale stores such as Neiman Marcus are still a fi xture on Michigan Avenue.

Filene’s Basement on Michigan Avenue.

Best Buy is drawing traffi c to Michigan Avenue.

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Textile & Trade Report

By Khanh T.L. Tran

LOS ANGELES — Designers and manufac-turers shopping the second edition of the GlobalTex trade show here last week sought high quality and sustainable fabrics to give their products an edge in a difficult retail environment.

The three-day expo at the Los Angeles Convention Center, which ended Oct. 15, and drew 125 exhibitors.

Among them was Pat Taylor, designer of the Ceviche swimwear line in Marina Del Rey, Calif., who looked for printed burnout fabrics, as well as lace and inky blues that would add a fashionable fl air to her pieces.

Jonna Jurkovich, designer at Speedwear Designz, a Rancho Cucamonga, Calif.-based company that produces T-shirts and board shorts for surf brands, hunted for different dye processes, novel treatments using silicon and enzyme washes and burnout prints.

“Anything that makes it more special in this economy” is how Jurkovich summarized her buying criteria.

Sustainability was a big selling point for designers such as Selma Macias of Ocean Breeze Fashions in Laguna Beach, Calif. Macias said she hoped to fi nd a wider variety of eco-friendly fabrics, such as fake fur and fake animal skins made of environmentally sustainable materials.

Sheryl Shoemaker scouted for organic cotton, bamboo and hemp for her Los Angeles-based label Zen Outside. Despite a premium in price for such fabrics, she said consumers remain interested in organic product.

“Quality sells,” she said. “If you have quality, people will buy it.”The sentiment was shared by Ascher Studio Inc., the New York-based company

that markets fabrics from Italy. Dan Sassower, Ascher’s sales representative in Los Angeles, said some mainstream companies such as Bebe balked at its prices, which run from $12 to $25 a yard. Even so, Ascher didn’t want to skimp on quality. The com-pany’s offering was inspired by its 1960 collection that was used by French design houses such as Christian Dior, Balenciaga and Grès. Ascher did well with lightweight wool and meshes, including a washed wool displaying alternating sheer and opaque stripes, as well as a linen-rayon blend that was fi nished to refl ect a gold shimmer.

“The trend is toward quality,” Sassower said. “We’re investing money to make that happen.”

Although many designers focused on quality, others continued to be price-sensitive because of the uncer-tain economy. Fox Fabrics attempted to appeal to both quality and price-con-scious buyers with ponte fabrics from Italy and China that could be used to make legging jeans. The Italian ver-sion from Inwool cost about $12 a yard, while the fabric from China’s Max Vogue sold for half as much.

Denim fabric specialists devel-oped several ways for designers to save money. Los Angeles’ Global Edge Source offered air tumbling, which softened fabrics for an additional cost of 50 cents a yard. Hindustan Trading Co. Ltd., a full-service textile provider and manufacturer, promoted ozone washes in its facility in China, along with organic cotton denim at $3.50 a yard.

Prints were a prevalent trend. Los Angeles’ Textile Secrets International

fi lled its booth with designers who liked bold prints of leaves and fl owers in shades of red, green and purple. London-based Westcott Design Ltd. said buyers liked dots, fl owers, and black-and-white geometrics that appeared blurred. Unitex International, a knit fabric provider from Vernon, Calif., received favorable responses for cloths that combined fl oral prints with dye-resistant treatments and burnout prints.

Texture was also key, as seen in the popularity of jacquard and embellishments.Turkey’s Semada Textile updated the ubiquitous plaid pattern in a jacquard, and

France’s Deveaux offered a double-faced plaid. Sophie Hallette, also from France, displayed a metallic lace embellished with puffs of rabbit fur in collaboration with Saga Furs.

Denim was one area in which GlobalTex tried to differentiate itself from the Los Angeles International Textile Show held two weeks earlier. The show’s or-ganizers changed the dates for GlobalTex’s next edition to March 2 to 4, which is before the Los Angeles International Textile Show is to kick off its three-day run on March 10.

GENEVA — Global fabric and yarn production posted major gains in the second quarter, spurred by a double-digit surge in output by Asia, marking a major turnaround after two years of continuous falls, an industry survey said.

World yarn production dur-ing the April to June period ex-panded 22.4 percent compared with the previous quarter, and was the fi rst gain registered after falls since the second quarter of 2007, said the International Textile Manufacturers Federation.

All regions registered increases in yarn production, ITMF said, in-cluding a 23.3 percent gain in Asia, a 2.2 percent increase in Europe and 1.5 percent hike in North America. Yarn orders were up 2.4 percent in Europe and 12 percent in Brazil.

World fabric production notched 14.4 percent increase in quarter, ITMF said, but produc-tion increases in Asia, up 16.7 per-cent, and in North America, up 7.8 percent, were offset somewhat by slight declines in Europe and South America.

However, global yarn inventories in the second quarter were down 3 percent compared with the previ-ous three months, with stocks down 15.3 percent in South America and 3.4 percent in Asia, but stable in Europe and North America.

Global fabric inventories fell 4.5 percent, “the lowest in years,” the report said, with stocks down 5.1 percent in North America, 4.9 percent in Asia and 1.5 percent in Europe.

— John Zarocostas

By Kerry Olsen

MILAN — Manufacturers exhibiting at the Filo yarn fair here revisited classic colors and re-introduced old favorites such as chenille.

The 32nd edition of the fair ended its two-day run at the Stelline Congress Center on Thursday and featured 86 exhibitors, com-pared with 80 exhibitors at the March edition. Attendance remained fl at at 2,700 visitors.

Mills emphasized yarns for spring-sum-mer 2011, which helped create the illusion of movement when woven. Botto Poala, a Biella-based spinner that produces wor-sted yarns for weaving and knitting, offered a new range of Cape Town fi bers in mohair and silk mixes in denim-inspired, two-tone midnight blue.

In color trends, soft pastels were as bold as colors got for many spinners.

“Subliminal colors such as beiges have been popular,” said Nicoletta Meriglio, Botto Poala’s production de-velopment manager.

Maria Rosa Dissegna, sales manager for Marchi & Fildi, another Biella-based spinner, confi rmed the muted trend.

“When there is a cri-sis, colors return to the classic and we’re see-ing a revival of many yarns,” she said. “It’s a three-year cycle.”

Marchi & Fildi’s col-lection played on the contrasts between matte and shine, offering new yarns with frosted ef-fects that offer strong tones and a sense of movement when woven. The mills’ new viscose yarns offered more classical effects. The company’s new viscose

linen blend provides a fi nal gar-ment a luxurious linen handle.

At Florence-based Luigi Boldrini there was a renewed demand for velvet fancy yarns such as chenille.

“It’s been a while since che-nille’s last appearance, and so the market is revisiting it again,” said a sales manager.

Lurex, the U.K.-based leader in metallized effect yarns, show-cased an extremely soft, fine range of yarns for a next to the skin application. The brand’s new DPC range yarns consist of a transparent dyed polyes-ter fi lm that offers garments a unique colored luster and trans-parency, in a range of colors in-cluding soft summer hues.

“We are a fashion-related company, and so the last year has been diffi cult, but I be-lieve the market has reached a plateau,” said Giovanni Tessari, Lurex’s Italian sales manager. “We’re hoping to raise our profi le again over the next few seasons.”

There were some new nov-elties alongside the classics and the reinvention of trends. Biella-based Safi l introduced mercerized wool yarn.

“The machine washable yarn has a soft handle,” said Cesare

Sacio, the company’s president. “The market is used to mercer-ized cotton, but wool is something new.”

Italian silk manufacturer Nembri Industrie Tessili unveiled silk yarn fi nishes in a bid to diversify from its traditional busi-ness of supplying silk yarns for luxury neck wear. To target the apparel market, Tessili offered a “lacquered silk” that refl ects light and enriches surface effects for printing. This was show-cased alongside a range of silk yarns mixed with fi ne jersey that offer a voluminous handle and mixed silk yarns that create pi-quet effects.

Mills Return to Classics at Filo Yarn FairWorldwide TextileProduction Rises

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The trend area at Filo. Above: Muted and blue

tones were dominant trends.

GlobalTex Buyers Focus on Value-Added Fabrics

Bold prints were popular at GlobalTex.


Dallas-baseD beauty bio sciences hopes to tweak public interest in its new lash allure MD eyelash growth serum by staging a contest with a $100,000 cash prize.

“We could spend the money on advertising — or do something fun and help somebody along the way,” said leesa smith, the firm’s executive vice president.

the company recently used social networking sites to challenge people to write a story or post a video describing what they would do with the prize money. the most compelling story, to be determined by public vote, will be announced by Jan. 1. the com-pany encourages contestants to post before and after photos of their lashes, but no purchase is required.

priced at $49.50 for 3.5 ml., lash allure MD is said to grow longer, darker and thicker lashes for most people within two weeks, according to the company’s research.

First-year sales are projected at $10 million.the formula uses pentapeptide-17 and an amino

acid for lash growth and a triglyceride compound to enhance absorption. terry James, a cardiac anesthe-siologist and company founder, developed it.

unlike latisse, a prescription medication the company sees as the product’s chief competitor, lash allure contains no prostaglandins, which can discol-or the iris and skin.

lash allure MD is launching this month at 300 units of Dillard’s Department stores and nordstrom and through its Web site. beauty bio sciences also sells its organicare line of usDa-certified organic skin treatments through the same retailers.

— Holly Haber

Chanel No.5 Biography ReleasedPARIS — “histoire du no.5 chanel, un numéro intemporel” (or “story of chanel no.5, a timeless number,” in english) is a book billed to be an “au-thorized biography” on the mythic scent introduced in 1921. Written by François ternon and published in French by editions normant, it will be released in France, belgium and switzerland on oct. 20. the subjects covered in the 186-paged book include how the fragrance got its name and the manner in which its bottle was chosen. ternon also retraces im-portant moments in the lives of Gabrielle bonheur “coco” chanel and ernest beaux, no.5’s two cre-ators. For the book, ternon consulted numerous sources, including those from the société Française des parfumeurs and the house of chanel, which also supplied 32 illustrated pages.

— Laura Balsollier

Lash Allure Launching Contest

By Jean E. Palmieri

art iMiG’s clothiers has FounD a WinninG formula — one that has lasted for 100 years.

the sheboygan, Wis.-based men’s store, which offers dry cleaning and tailoring services along with traditional retail, is celebrating its centennial. still owned and operated by its original family, the re-tailer has managed to buck the trend that has led to the demise of many of its independent brethren by providing unique services coupled with fair prices on merchandise not generally carried by the larger stores in the area.

“We’re truly blessed,” said arthur imig, grandson of the founder and cur-rent president who runs the store with his brother robert, executive vice president. “We’re very proud of our history and can say it’s been a great education.”

art imig’s was founded in 1909 in sheboygen, a small port town on lake Michigan about one hour from Milwaukee and two-and-a-half hours from chicago, as a dry cleaner, one of the first in the country. imig recalls how his grandfather had a noncompete agreement with his brothers, who operated a men’s store in town, for five years. When that agreement lapsed, imig added men’s apparel to the mix. today, the company still operates its original store in down-town sheboygan, which serves as the central dry-cleaning and tailoring shop, and houses the corpo-rate office. about four miles away in Kohler, Wis., the company has its retail store in the shops at

Woodlake, a upscale vacation community which is also the location of the headquarters of the Kohler co. plumbing empire.

imig said 65 percent of his customers are locals, drawn from the sheboygan community of 100,000. the remainder are weekenders and visitors who stumble upon the store and return for its service and selection.

art imig’s carries a full range of men’s apparel — everything from suits and outerwear to furnishings and accessories. top brands include hart schaffner

Marx, austin reed, Joseph abboud and Jack Victor. “We’re not $1,000 suits and we’re not

$299,” he said. “the average is $695 to $795.” over the years, the store has upped its per-centage of sportswear and offers tommy bahama and other similar labels to ad-dress customers’ more-casual needs.

imig said the store’s location and brand mix are its “real salvation. We

really don’t have any competition in our area.” the now-defunct prange co. was the

“hometown department store,” and the re-maining large players, younkers and the boston

store, offer lower-priced men’s wear, he said.in addition, art imig’s prides itself on providing

superior customer service. according to robert imig: “i think a lot of our current and new customers come to us for direction — they don’t feel they can walk into a big-box department store and get the individu-al service and eye for detail that we provide. and that is what sets art imig’s apart from our competition and i believe it is what has allowed us to continue to do business in this community for a century.”

WWDMen’s

Art Imig’s Celebrating Centennial

BEAUTY BEAT

Art Imig’s then and now.

CUTS CONTINUE: The layoffs at Condé Nast continue this week, with Glamour cutting about a dozen editorial staffers on Monday. Though the magazine did not specify how many staffers were let go or release names, several top-level staffers will leave, including deputy editors Ellen Seidman and Maryellen Gordon. Both were longtime editors at the women’s title — Gordon has been there for 10 years, while Seidman first worked for Glamour under Ruth Whitney, and later returned when Cindi Leive took over as editor in chief. The magazine’s production director, Paul Kramer, was also laid off. Glamour also cut seven staffers on the business side early this month.

Glamour’s staff reductions follow layoffs at Vanity Fair, W, Wired, Lucky, Golf Digest and Vogue that started almost two weeks ago as the company streamlines its workforce. The cuts also continued across the digital businesses — Style.com has laid off two contributors, including executive fashion director Candy Pratts Price, whose contract will not be renewed when it ends in spring 2010. Price is also a contributor to Vogue and vogue.com, and will likely make Vogue her primary outlet after her Style.com contract ends. Senior features editor Laird Borrelli-Peterson was also let go.

As widely reported, Condé Nast’s ad revenues have declined by a third this year, resulting in several rounds of cost cutting and the hiring of McKinsey & Co. The company shuttered Gourmet, Modern Bride, Elegant Bride and Cookie, leaving 180 staffers without positions, and editors and publishers at Condé Nast have been charged with trimming up to 25 percent of their budgets for 2010 through any means they choose, from eliminating positions to reducing T&E budgets.

Cuts this month at the individual magazines and within several corporate divisions of Condé Nast have increased the total number of employees that have left the company to about 250. But not every magazine has relied on staff reductions to help reach its 2010 budget targets. At Self,

editor in chief Lucy Danziger gave up her car service for next year, beginning immediately. That said, while Self didn’t eliminate any positions on its edit side, it did reassign some staffers to a reduced work week, and it already had lost some midlevel editors to attrition beginning this summer. However, two recently hired promotions staffers on Self’s business side were let go on Friday. — Stephanie D. Smith

NEWSROOM BUYOUT: Condé Nast is not the only publisher reducing head count. At The New York Times, executive editor Bill Keller sent a memo to employees Monday that said the paper must eliminate 100 positions between now and the end of the year, or be forced to lay off more staffers. The buyout offer extends to union and non-union employees, and staffers have 45 days to decide to take the package. The layoffs would follow a 5 percent salary cut implemented earlier this year in

an effort to stave off staff reductions. “I won’t pretend that these staff cuts will not add to the burdens of journalists whose responsibilities have grown faster than their compensation,” wrote Keller. “But we’ve been looking hard at ways to minimize the impact — in part, by re-engineering some of our copy flow. I won’t promise this will be easy or painless, but I believe we can weather these cuts without

seriously compromising our commitment to coverage of the region, the country and the world.” According to nytimes.com, the 100 staffers equate to 8 percent of the newsroom, which now has around 1,250 employees. Along with nearly every newspaper in the country, the Times has had to reduce staff and implement cost cuts as advertising has shrunk across the sector. “Like you, I yearn for the day when we can do our jobs without looking over our shoulders for economic thunderstorms,” wrote Keller. — S.D.S.

TRAVEL, NOT LEISURE: Karl Lagerfeld will soon have a new stamp in his passport: Argentina. The designer is shooting the next Chanel campaign on location in Buenos Aires with Claudia Schiffer, Freja Beha Erichsen and Baptiste Giabiconi. It will be Lagerfeld’s first time in the South American nation. “I only go to places if I have a professional reason. I’m not a tourist,” he said. The multitasking designer said he would also work on a forthcoming book about architecture in Argentina. — Miles Socha

MEMO PAD

Karl Lagerfeld

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call, also noting wholesale orders showed significant improvement in the month, sug-gesting department stores had been postponing orders and are now playing catch-up. De-stocking of liquor and watches dented revenues in the three months ended Sept. 30, which totaled 4.14 billion euros, or $5.91 billion; however, the French luxury giant said that trend is also easing. “Watches in the U.S. and most markets are improving, but at a very slow pace,” Guiony cautioned.

The company said Asia, particularly China, continues to show strong momentum, and it described Europe as “resilient.” Still, it allowed that it is “still impacted by the crisis in many regions of the world.”

Revenues in the nine months stood at 11.95 billion euros, or $16.33 billion, roughly flat versus 2008, but down 6 percent in organic terms, meaning with a comparable structure and at constant exchange rates. Dollar figures are converted from average exchange rates for the periods to which they refer.

In local currencies, sales in the nine months rose 7 percent in Asia, but slumped 5 percent in Europe, 12 percent in the U.S., and 19 percent in Japan.

LVMH gave no revenue or earnings guidance for the balance of the year, saying only that it aims to “increase its global leadership position in luxury goods.” Guiony cautioned that some regions remain “heavily de-pressed” and the currency situation remains volatile.

Louis Vuitton logged double-digit gains in the nine months and took credit for “the bulk” of gains in the third quarter, Guiony said. Famous for its monogram canvas, the firm cited strong sales of its silver-and-black Damier Graphite men’s line, and good performance in Europe and Asia.

“The Chinese market is very strategic for us,” Guiony said. “Vuitton re-mains shopping malls’ favorite brand due to its drawing power.”

Indeed, Chinese customers now account for almost 18 percent of Vuitton’s business, second only to the Japanese, who rack up about 27 percent of sales. LVMH is also dependent on the Chinese for 15 percent of its wines and spir-its sales, most of it in cognac.

The company highlighted an “excellent reception” to Phoebe Philo’s first designs for Celine, a cruise collection, but Guiony allowed that business for LVMH’s fashion brands remains tough and “varies a lot from one to another.”

Most, he said, registered “small double-digit declines” in the wholesale business in the third quarter.

Asked if the French group might “rationalize” its portfolio, Guiony replied: “We have no plans to sell or buy any fashion brands for the time being.”

Fashion and leather goods was the only business division re-porting a revenue increase in organic terms, rising 1 percent to 1.55 billion euros, or $2.21 billion. Led by strength in Asia, sales in selective retailing were roughly flat at 1.04 billion, or $1.49 billion. Like-for-like sales at Sephora slipped 2.3 percent in Europe and 8 percent in the U.S., Guiony noted.

In organic terms, revenues declined 17 percent in watches and jewelry to 187 million euros, or $267.3 mil-lion; fell 11 percent in wines and spirits to 682 million euros, or $974.4 million, and slipped 4 percent in perfumes and cosmetics to 686 million euros, or $980.4 million.

The bridal jewelry segment was one of the few bright spots in the watches and jewelry division, with business down about 30 percent in the quarter in the U.S., and de-clines of a similar scale in Japan, Guiony noted.

Separately on Monday, Christian Dior Couture said sales in the first nine months fell 8.2 percent, or 11 percent at constant exchange, to 518 million euros or $740.3 million. Echoing trends at LVMH, Dior said business in its boutiques showed “tangible signs of recovery” in the third quarter, while wholesale revenues were impacted by “the destocking phenomenon at department stores.”

Based on calculations made by WWD, Dior’s sales in the third quar-ter fell 10.1 percent to 178 million euros, or $254.4 million. The com-pany noted that sales of leather goods, particularly the Lady Dior line, showed “sustained” growth, while the Asia-Pacific region, and China in particular, “confirmed their strong growth potential.”

The more upbeat tone at LVMH was echoed by Claudia D’Arpizio, partner of Bain & Company Italy, who forecast an 8 percent drop in the luxury goods market in 2009 to 153 billion euros, or $228.1 billion at current exchange, but foresees 1 percent growth in 2010 to 155 billion euros, or $231.1 billion. “We will see the first positive signs in orders taken for the fall-winter 2010 season,” said D’Arpizio.

Meanwhile, Deutsche Bank on Monday raised earnings forecasts for the first time in two years — by 4 percent on average. Its bullish outlook on the sector is due to strength in emerging markets, tight cost controls and an end to the dramatic destocking that hammered with watch industry.

The investment firm said luxury spending is likely to correlate with global GDP growth, now forecast to log a 3.5 percent uptick in 2010, and hit the midsingle-digit range next year. “We are increasingly comfortable about the prospects for the U.S.,” said a research note by analyst Francesca Di Pasquantonio.

Emerging markets, already responsible for a quarter of global luxury demand, are ex-pected to account for 80 to 90 percent of growth in the sector for the next three years.

As for watches, Deutsche Bank expects production will rise by up to 5 percent next year, even if retail demand is flat. Swatch and Compagnie Financière Richemont are in pole position to capitalize on this need to catch up on inventory levels. Those two stocks, along with Burberry, are the top picks of Deutsche Bank, which also sees upside to Tod’s. However, it downgraded PPR, Bulgari and Luxottica on valuation grounds.

A third report, the Altagamma Consensus 2010, predicted earnings before interest,

taxes, depreciation and amortization (EBITDA) for the sec-tor will increase 5 percent in 2010.

Armando Branchini, general secretary of Altagamma, said the apparel category will decline 6 percent in the first half

of 2010, but grow 8 percent in the second six months, resulting in 1.5 percent growth for the year overall. “The first half of 2010

will be worse than the second semester,” said Branchini. Sales of tableware will drop 2 percent in the year; jewelry and watches will

post a 4 percent drop in the first half of 2010, but show a 1.5 percent rise in the full year; bags, shoes and leather goods will grow 4 percent

next year, and fragrances and cosmetics will rise 2 percent in 2010. Geographically in 2010, sales in South America will rise 5 percent,

drop 4 percent in Japan and grow 1.5 percent in Europe. Performance in the U.S. will be flat. The Middle East and the rest of the world will grow 5 percent each, while revenues in Asia will rise 12 percent.

The more bullish outlooks don’t mean the sector’s hard work is at an end, however. D’Arpizio of Bain urged brands to focus on long-term strate-gies given the aging populations in key markets like Japan and Germany, the onset of new consumers and emerging global brands from new regions. Bain expects Asia to become the number-one market for the luxury goods sector in 10 years, with China alone showing 12 percent growth in 2009.

She said that, in the next decade, there is a need to consolidate as new investors and consumers flush with cash, or “exotic money,” from the Middle East, China and India will influence business.

In retailing, consumer experience in brick-and-mortar stores will be piv-otal, as more and more shoppers turn to buying online. “There will be less

reverence towards the brands, and we will see more cherry-picking,” said D’Arpizio. Vittorio Missoni, who oversees institutional affairs at the family-owned company,

said after the meeting that customers must be “reeducated, following recent heavy discounting endorsed by many brands and wholesalers.”

Gaetano Miccichè, head of the corporate division and investment banking at Intesa Sanpaolo, underscored the difference between the financial crisis, which he believes is over, and the economic one, which is still ongoing. “All the confusion of the past year is gone, though. There is a strong desire for the market, and we see new examples of capital increases,” he said. “I expect there will be a new wave of IPOs in the first months of 2010.”

But Michele Norsa, chief executive officer of Salvatore Ferragamo, which has shelved plans to list until the market recovers, said on the sidelines of the meeting that he isn’t convinced IPOs will pick up anytime soon.

Versace chairman Santo Versace is expected to be appointed the new president of Altagamma next month, succeeding Leonardo Ferragamo.

“September was better in retail, more or less everywhere. ”

— Jean-Jacques Guiony, LVMH Moët Hennessy Louis Vuitton

Brighter Days for Luxe Seen on the HorizonA resort look by Celine.

Diorskin Nude foundation.

Continued from page one

Tag Heuer’s Aquaracer 500.


By Jennifer Cardenas

HONG KONG — After being hard hit by the global economic downturn in their traditional markets, exhibitors at the APLF Fashion Access fair said they are setting their sights on expanding into the Chinese market.

The footwear and accessories fair, held at the Hong Kong Convention & Exhibition Center from Oct. 6 to 8, featured 354 exhibitors. The show’s organizer declined to release atten-dance figures.

Vicky V. Amalingan-Sales, chair-man and marketing manager of Philippines-based woven handbag and clutch brand S.C. Vizcarra, said 2009 has been a difficult year.

“About 80 percent of our business comes from Japan, but this year we’ve seen a 50 percent drop in sales,” said Amalingan-Sales. “We’ve had to cut our prices by 10 to 15 percent to at-tract more customers. We can only hope things will get better next year, but we don’t see things picking up any-time soon.”

Price cuts have not been uncommon given the economic climate, and some have compromised on quality in a bid to stay in the game. Sally Chang, North America sales manager of Canadian handbag brand Gaya, said 30 percent of its retail clients have dropped their line since April.

“As a result, we’ve had to look at using cheaper materials,” said Chang. “In fact, we’ve removed all leather products from our upcoming summer collection to concentrate on vinyl syn-thetic totes and bags. At this point, we don’t know when things will pick up.”

Companies like Los Angeles-based leather handbag label Blue Elegance have adopted the opposite strategy. Owner Annie Lin said during periods of economic difficulty it was crucial for product to stand out in order to main-tain sales.

“This year has actually been a very good year for us,” she said. “Instead of cutting back costs, we’ve invested more in sourcing higher quality leather and studs. Improving the quality of our products has really paid off and the

response from our North American clients, which range from department stores to boutique retailers, has been incredibly positive.”

Handbags with distinctive hard-ware and embroidery such as studs, chunky buckles and sequins spurred the most buyer interest, as did small leather accessories in pastel lilac, wis-teria and mauve.

Many handbag and accessories companies are also looking to enter the Chinese market as part of a strat-egy to offset dwindling demand from Europe.

Catherine Ma, a sales representa-tive with Nu Design, which produces and exports small recyclable leather goods, said the year had a fairly slow start but started to pick up after May.

“Europe, our biggest market, was very badly hit. They were quiet for about six months,” said Ma. “We’re lucky we’re a small- to medium-sized factory that we can afford to be cost cautious. Factories operating on a larger scale were hit worse. That said, we are looking to enter the China mar-ket, but with caution.”

Despite the lure of the Chinese market, Ma said she was aware the brand must lay the groundwork to enter the country under the best cir-cumstances possible.

“I know how lucrative the Chinese market can be, but we don’t want to jump into it,” she said. “We have to find the right partner and the right department stores that can represent our brand successfully. There are also pricing and taxation issues to consider.”

Matthew Chow, managing director of C-Corp International Co., a hand-bag manufacturer and distributor to Europe and the U.S., said the firm is also looking to enter the Chinese market.

“The problem with China is that it can take much longer to get any-thing done there as there is a lot of red tape involved,” said Chow. “A lot of people have lost a lot of money try-ing to crack China, but I believe if you push through, it can be worth it in the long run.”

By Elizabeth Thurman

ATLANTA — Men’s retailers scoured the Cobb Show here for fresh product that didn’t skimp on design.

Buyers arrived at the show, held Oct. 4 and 5 at the Cobb Galleria, with bud-gets reduced by as much as half and fo-cused mostly on immediate deliveries. Exhibitors reported steady traffic, espe-cially the first day, and said retailers were looking for bargains.

The number of exhibitors decreased from 586 at the August show to 569, said Deborah Green, marketing manager.

Trends mostly ran parallel to those at the August show, reflecting a continued departure from a season-specific trade show format. Denim had a significant presence on the floor and styles played with wash, rinse and detailing, particu-larly on pockets.

In sportswear, exhibitors showed plenty of casual looks, including printed and plain T-shirts in bright colors, woven tops and lots of stitching and embroidery. Although there was no shortage of visual interest, looks featured decidedly less bling.

The six-year-old show, which is pro-duced by Atlanta Apparel Exhibition Group, has raised its premium denim and sportswear quotient in recent edi-tions, partly because of a strong pres-ence from manufacturers Ed Hardy and Christian Audigier, whose offerings were

housed in Velocity, a high-end contempo-rary section.

Sales reps for the two brands reported positive buyer response from both urban and high-end retailers, especially with rhinestone looks, patch details and em-broidery.

Ruben Campos, founder of denim line Rivet de Cru that sells to about 300 U.S. doors, said first-day traffic at the show was “amazing,” adding the quality of buyers at the show has improved.

Campos recently reduced wholesale price points by about 20 percent to $35 for most styles, citing economic pressures and reluctance from buyers to merchandise denim for more than $100 at retail.

“The way we do business has changed and I don’t see [economic conditions] getting better anytime soon,” said Campos, adding that he’s cutting costs by being more selective with trade shows. “Thinking about 2010 is scary, but if I can just sell enough to pay bills, even if we don’t make any money, we’ll be OK.”

Campos and other manufacturers ex-pressed concern about production in China amid rising costs and trade relation woes, and several reported cost-cutting elsewhere to hedge expenses overseas.

“Everybody I’ve seen at this show wants a deal,” Campos said. “Whether it’s a dis-count or a closeout, they’ll take it.”

The next Cobb Show is scheduled for Jan. 10 and 11.

By Rachel Mascetta

MILAN — Bar Refaeli is joining Roberto Cavalli, Salvatore Ferragamo, Gianfranco Ferré, Missoni and Vivienne Westwood on a trip to Turkey for the first-ever Fashionable Istanbul event, or three days of fashion shows and festivities, scheduled for Friday to Sunday.

Along with local designers and design stu-dents, the brands will show their spring col-lections for Turkish press and buyers at the historic Dolmabahçe Palace. Refaeli was cho-sen as the face of the event and appears in the Fashionable Istanbul advertising campaign.

The event is being organized by Baykam & RBM, a multinational company created this year by merging Milan-based brand manage-ment and fashion consultant Baykam & Partners with RBM, an Istanbul-based production firm. IMG Fashion Europe also contributed in plan-ning the event.

“Turkey is a country that bridges fashion be-tween Europe and Asia,” said Hakan Baykam, the founder of Baykam & RBM. “My objective is to be able to attract key personalities from the fashion industry to help make Istanbul another important stop on the international fashion calendar.”

He added that Fashionable Istanbul “will turn the spotlight on Istanbul, a city that boasts a youthful population and a burgeoning fashion scene.” Select design students will be awarded internships with one of the participating fash-ion houses.

Baykam also stressed the event is open to hosting brands from even more countries for the second edition, which will take place a year from now on to-be-decided dates.

TARGET CONFIRMED ON MONDAy THAT JEAN PAUL GAULTIER WILL BE THE third in its series of Designer Collaborations, a relatively new concept intended to boost the discounter’s cheap-chic status.

The program features well-established designers who draw inspiration from a col-laborative partner, muse or creative element. Designer Collaborations is separate from Target’s Go International initiative.

The exclusive Jean Paul Gaultier for Target collection will debut on March 7 in more than 250 stores nationwide and on target.com. The collection will be available through April 11. Gaultier’s Designer Collaboration will have a tighter distribution than the last participant, Anna Sui, whose collection was sold in about 600 Target units.

Jean Paul Gaultier for Target pays tribute to the American woman, celebrating the forces of style both past and present in American pop culture, the retailer said.

Gaultier, who has always identified with popular culture — producing costumes for Madonna in the Nineties — is known as one of the industry’s master tailors. The de-signer was one of the first to feature innerwear as outerwear on the runway. He has based many of his collections on street style and ethnic influences.

Target’s Designer Collaborations series kicked off in March with Alexander McQueen, whose McQ Alexander McQueen for Target, was inspired by Liela Moss, lead singer of The Duke Spirit.

Sui followed last month by channeling one of her favorite TV shows, “Gossip Girl.” Sui’s collection included leather jackets for $149.99, metallic jacquard dresses and silk wrap dresses, $59.99, and was in stores through Oct. 17. Target created a pop-up store for Sui at a private four-story town house at 54 Crosby Street in Manhattan’s SoHo neighborhood. It opened to big crowds on Sept. 9 and closed Sept. 11. It could not be learned whether Target will do a pop-up store for Gaultier as well.

— Sharon Edelson

Brands Head to Fashionable Istanbul

China, Pricing Talk of APLF Fair

Buyers Focus on Immediates at Cobb

Gaultier Set for Target Collaboration

Jean-Paul Gaultier looks for spring.

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Financial

5.80 5.76 Tefron (TFRFF) - 1010 5.76 +21.26

1.59 1.22 Joe’s Jeans (JOEZ) 20.0 3619911 1.45 +20.83

8.20 7.53 Zale (ZLC) - 580304 8.20 +7.47

28.20 26.47 Genesco (GCO) 24.7 574216 28.18 +6.42

21.48 19.99 Collective Brands (PSS) - 2239928 21.18 +5.79

11.68 10.69 Brown Shoe (BWS) - 534483 11.51 +5.69

0.58 0.50 Charles & Colvard (CTHR) - 63851 0.57 +5.56

7.06 6.58 Pacific Sunwear (PSUN) - 1979521 6.96 +5.45

50.86 47.82 Tod’s * (TOD:MI) 18.2 349563 50.57 +5.22

18.79 17.56 Volcom (VLCM) 34.3 175948 18.74 +4.93

10 BEST PERFORMERS DAILY COMPANIES P/E VOLuME AMt

HIgH LOw LASt %CHANgE

0.23 0.21 NexCen (NEXC) - 234455 0.21 -12.50

48.00 44.00 French Connection * (FCCN:LN) - 18391 45.5 -6.19

5.59 5.26 Cache (CACH) - 32882 5.35 -6.14

5.37 5.14 New York & Co. (NWY) - 670578 5.17 -5.66

21.88 20.72 DSW (DSW) 47.4 538622 20.95 -3.90

3.50 3.26 LJ Intl (JADE) 31.0 551745 3.28 -3.82

7.93 7.52 Coldwater Creek (CWTR) - 1814974 7.57 -3.81

15.35 14.56 Zumiez (ZUMZ) 54.0 366483 14.60 -3.44

0.62 0.60 Birks & Mayors (BMJ) - 2749 0.60 -3.23

8.78 8.48 Hot Topic (HOTT) 19.4 962935 8.50 -2.86

10 WORST PERFORMERS DAILY COMPANIES P/E VOLuME AMt

HIgH LOw LASt %CHANgE

By Evan Clark

Policymakers searching for an economic engine to drive the recov-ery are looking beyond the U.s. con-sumer and toward rebounding econo-mies in asia.

“While risks to the economic outlook certainly remain, asia ap-pears to be leading the global re-covery,” federal reserve chairman Ben Bernanke said monday at a fed-sponsored conference in santa Barbara, calif. last month, Bernanke said the U.s. recession was “very likely” over, but the poor job market would make the economy feel weak for a lengthy period.

Bernanke also warned monday that the trade imbalances with asia, which have improved as U.s. consumers save more and asian consumers spend more, could reassert themselves as the economy perks up and trade volumes rebound.

stock markets extended their gains on monday. The s&P retail index rose 1.1 percent, or 4.42 points, to 397.45 and the Dow Jones industrial average advanced 1 percent, or 96.28 points, to 10,092.19 — a new high for the year. The hang seng index climbed 1.2 percent in hong kong, but the nikkei 225 dipped 0.2 percent in Tokyo.

although the asian economies joined the U.s. in economic contrac-tion in the fourth quarter and early this year, the region grew at an annual rate of 9 percent in the second quar-ter, with double-digit jumps in china, hong kong, south korea, malaysia,

singapore and Taiwan, Bernanke said.That helps makes asia a better can-

didate to lead the recovery than the U.s. consumer, who helped fuel growth and kept asian factories humming ear-lier in the decade, but has reprioritized over the last year in favor of saving over spending.

“The asian recovery to date has been in significant part the result of growth in domestic demand, support-ed by fiscal and monetary policies, rather than of growth in demand from trading partners outside the region,” Bernanke said.

The financial crisis has helped nudge the U.s. and china toward what economists have long said would be a

healthier balance. To keep that balance, consumers in asia, particularly the 1.3 billion people in china, will have to con-tinue to spend.

“To achieve balanced and sustainable growth, the authorities in surplus coun-tries, including most asian economies, must act to narrow the gap between sav-ing and investment and to raise domes-tic demand,” Bernanke said. “in large part, such actions should focus on boost-ing consumption.”

That puts the fed and brands from fendi to the gap on the same page. china is seen as a huge consumer mar-ket ready to take off. last week, gap inc. said it would ramp up its international expansion and open its first store in china next fall. gap chairman and chief executive officer glenn murphy noted no american apparel brand had a strong presence in china.

Li & Fung Acquires Kids Headquarters

* 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.

Bernanke: Asia Leading Recovery

Rafaella Ekes Out Fourth-Quarter Profit

By Constance Haisma-Kwok

HONG KONG — li & fung ltd., the global sourcing giant, said it has acquired Wear me apparel llc, otherwise known as kids headquarters.

Based in new york, kids headquarters markets young men’s and children’s clothing across america in department stores as well as mass merchants, includ-ing macy’s, kohl’s and Wal-mart.

The firm manages a portfolio of li-censed brands, proprietary brands, pri-vate labels and character licenses, in-cluding calvin klein, Timberland, U.s. Polo association, Disney, marvel, Warner Bros., rocawear and hurley. net sales for Wear me apparel were approximately $700 million in 2008.

li & fung described the purchase of Wear me as the next step in growing its U.s.-based operations. “This acquisi-tion dramatically strengthens lf Usa’s growth platform. By leveraging our glob-al sourcing capabilities and deep retail relationships, we will be able to expand

into new markets and categories includ-ing young men’s and junior’s,” stated rick Darling, president of lf Usa. Wear me is now the sixth operating division of lf Usa.

li & fung said it would make an up-front $100 million cash payment, plus performance-based payments over the next five years. according to the docu-ments filed, the total payment will not exceed $401.8 million. completion of the acquisition is expected by the end of november.

commenting on the acquisition, Bruce rockowitz, president of li & fung ltd., stated: “We are very pleased with this acquisition as Wear me apparel is a great company and rep-resents a tremendous value proposi-tion for all involved. We will continue to pursue our acquisition strategy, and this deal is only one of the many oppor-tunities that we are currently looking at. The pipeline of deals is strong and it’s almost unprecedented that we’ve seen so many great opportunities.”

By Matthew Lynch

rafaella aPParel groUP inc. had to contend with reduced orders and provide markdown assistance to cus-tomers in its fourth quarter, but inven-tory control and reduced year-over-year charges swung the firm into the black.

for the three months ended June 30, the new york-based vendor’s net in-come totaled $131,000 compared with a net loss of $26.2 million a year ago. sales in the quarter fell 42.7 percent to $23.8 million from $41.6 million in the 2008 period.

on a conference call, chief executive officer christa michalaros said in both the year and quarter, the firm’s depart-ment store customers reduced orders to keep inventories down. she added rafaella had put a premium on keeping its own inventories in line.

for the fiscal year, the women’s sportswear maker reduced invento-ried goods by 62.9 percent to $12.3 mil-lion from $33.2 million in 2008 primar-ily by making use of off-price sellers, michalaros said.

rafaela’s selling, general and admin-istrative expenses included a goodwill writedown of $2.4 million in the quarter related to the decreased performance

of its namesake brand. The year-ago pe-riod included a similar charge of $34.5 million. Barring those writedowns, the company reduced sg&a in the quarter by 31 percent to $6 million from $8.8 million.

looking ahead to the current year, the ceo said fall and holiday bookings are down about 20 percent, but that heavy promotional activity is down as well.

“The retailers are selling more units this year versus last year at regular price….They’re turning the goods at a faster rate than they did a year ago,” michalaros said. she added the compa-ny will aggressively pursue market share in the department store sector given liz claiborne’s recent exclusive deals with J.c. Penney co. inc. and QVc.

cerberus capital management bought rafaella in 2005 by issuing $172 million in public debt. The financing requires the privately held firm to file quarterly reports with the securities and exchange commission.

for the fiscal year ended June 30, the group posted a net loss of $15.4 million versus a loss of $24.8 million in the year-ago period. sales in the 12 months slid 16.9 percent to $148 million from $178 million in 2008.

For full daily stock changes and more financial news, see WWD.com / business-news.

“The Asian recovery to date has been in significant part the result of growth in domestic demand, supported by fiscal and monetary policies.

” — Ben Bernanke, Federal Reserve

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JUNIOR SALES REPLooking for 1407 or Broadway

showrooms. Sublet/shareMark 818-970-3327

C H I N A F A C T O R YSmall and larger production. Cost saving;Designer’s quality; Quick turn around.T: 212-967-8882; E: [email protected]

PATTERNS, SAMPLES,PRODUCTIONS

All lines, Any styles. Fine Fast Service.Call Sherry 212-719-0622.

PATTERNS, SAMPLES,PRODUCTIONS

Full service shop to the trade.Fine fast work. 212-869-2699.

PTTNS/SMPLS/PRODHigh qlty, reasonable price. Any de-

sign & fabric. Fast work. 212-714-2186

Director of Public Relations - New York

Executive Assistant - New York

Store Manager - Madison Avenue

Sales Associates - Madison Avenue

Store Manager - Las Vegas

Sales Associates - Las Vegas

For more information on Devi Kroell and detailed job requirements

and responsibilities please visit www.devikroell.com

Please e-mail applications to: [email protected] and include position in the subject line.

Devi Kroell Inc. was founded in 2004 and is a fast growing New York based

luxury fashion house sold nationally and internationally. Devi Kroell is

looking to expand its team with highly motivated, ambitious, entrepreneurial,

dynamic, enthusiastic and driven individuals. These positions will actively

contribute to aggressively growing the company, and will work closely with

the existing management team, as well as CFDA award winning designer,

CEO and Founder Devi Kroell. The company's vision is to become a global

luxury lifestyle brand and to grow through both retail and wholesale

expansion, as well as by widening its product categories. All candidates must

be multi-taskers, used to dealing with multiple tight deadlines, be flexible,

and individuals who want to build and be part of a success story.

For more information on Devi Kroell, please visit www.devikroell.com

Receptionist / PR LiaisonA.B.S. by Allen Schwartz, a nationalbrand of sportswear and dresses,is seeking a dynamic individual forthe New York Showroom. The candi-date should have strong communica-tions skills & a passion for learning.Job responsibilities include recep-tionist, PR liaison, sales assistantand light showroom modeling.

This position is a high profile oppor-tunity. College degree required.

Please send resumes to:[email protected]

RETAIL DIRECTORItalian Luxury Accessories Brand iscurrently conducting a search forRetail Director at the Madison AvenueFlagship Store.Qualified candidates must have strongexperience in managing luxury retailboutiques. Responsibilities include:managing and recruiting sales staffwith client books, creating annualbudgets and sales projections, overseeingall retail operations and managing inven-tory control, spearheading visual mer-chandising techniques, and coordinat-ing sales and PR marketing events.Knowledge in high-end jewelry a plus,but not a requirement. Please sendresume to: [email protected]

SPORTSWEAR DESIGNERHighly successful Womens Apparelmfgr needs exp designer for Sports-wear Div. Candidate must be able toresearch and develop product withcomm’l appeal. Must have knowledgeof construction and costing for bothdomestic and import product; beorganized, computer literate and ableto work in a fast paced environment.Email resumes to:

[email protected]

Salary Plus CommissionSales Position in NY Aggressive,Energetic, Hard Working Ladies Jr &Plus size Fashion 7 years sales exp. w/ chainand dept. store, private label. Fax 305-597-9436 or [email protected]

SALES EXECUTIVE Jr. Sportswear Co. seeks aggressive,results driven self-starters w/proventrack record of growing biz & openingnew accts. Salary commensurate w/exp.Fax or email resume to 212-768-7261

[email protected]

SWEET PEAAccount Executive/Salesperson

Must have min. 5 years sales exp withBetter Dept. Stores and Chain Stores.Only aggressive take charge appli-cants need apply. E-mail resume:

[email protected]

SALES ASSOCIATE(full or part time)

Italian Luxury Accessories Brand iscurrently conducting a search forjewelry and leather Sales Associates atthe Madison Avenue Flagship Store.Responsibilities include: greeting andassisting clients, building and manag-ing strong customer relationships.Existing client book required.

Please send resume to:[email protected]

PATTERNMAKERFormer instructor at prestige fashioncollege seeks freelance patternmakingin Long Island. Call: 631 549 3217


IN BRIEF• BUXBAUM STALKING HORSE FOR S&K TRADEMARKS: The Buxbaum Group has been chosen as stalking-horse bid-der for the intellectual property of the now-defunct S&K Menswear chain. S&K filed bankruptcy in February, and its 105 stores were liquidated by Gordon Brothers Retail Partners beginning in May after the company was un-able to find a buyer or the financing to continue to op-erate. That process has been completed, according to Margaret Birlem, a partner in Streambank LLC, an advi-sory firm specializing in intangible assets. Streambank has reached a deal to sell S&K’s intangible assets to Buxbaum for $165,000. This includes the store name as well as its private brands Roberto Villinni, Kilburne & Finch and Daniel Gray, and its database of more than 2.5 million customers. The Buxbaum offer is subject to higher and better bids and bankruptcy court approval. S&K has filed a motion with the court seeking approval of the sale procedures, setting a bid deadline of Nov. 6, and an auction date of Nov. 10.

• BUY RESPONSIBLE CAMPAIGN BOWS: The International Organization for Migration launched a campaign in Brussels on Monday, aimed at creating greater con-sumer awareness of goods manufactured by trafficked and exploited workers worldwide. The campaign, titled “Buy Responsibly,” was designed by Saatchi & Saatchi Geneva and features TV spots to run in Europe of ex-ploited workers trapped under an upside-down shop-ping cart. The IOM initiative is also backed by the Clean

Clothes Campaign alliance, the Council of Europe and the Ecumenical Council for Corporate Responsibility. The IOM said about 800,000 people are trafficked across international borders annually and more than 12 million people are estimated to be in forced or bonded labor and working in appalling conditions, including some in textile mills and apparel sweatshops, but primarily in agriculture and construction. Campaign organizers are telling shoppers to find out where the food and goods are processed or manufactured to avoid indirectly sup-porting slave labor with their purchases.

• TJX PROFIT BOOST: Off-price giant The TJX Cos. Inc. on Monday raised its third-quarter profit guidance for the second time in as many weeks and said October comparable-store sales would climb 9 percent to 11 percent. For the third quarter, profits from continuing operations are now expected to rise to 77 to 79 cents a diluted share. On Oct. 8, the company said earnings for the quarter would rise to 71 to 74 cents, and in August the projection was for earnings of 62 to 68 cents. Year-ago earnings tallied 58 cents.

• NEW CEO AT TECHNOMARINE U.S.: Steven E. Cohen has been named chief executive officer of TechnoMarine in the U.S. Cohen has more than 20 years of experience in the fine watch sector, with stints as president of Movado Group’s Canadian division and as the American presi-dent of Ebel, also under the Movado flagship. Based in

Miami, Cohen will shuttle to and from Geneva, where the watch company is based. Cohen reports to Vincent Perriard, who was appointed ceo of TechnoMarine Group in August after leaving Movado Group Inc., where he was president of the Concord brand.

• CHAMPAGNE MOVES: Jean-Marc Gallot has been named managing director of the LVMH Moët Hennessy Louis Vuitton-owned Champagne house Ruinart, effective Nov. 4. Gallot, who joined LVMH in 2003 as managing director of Louis Vuitton North America before being promoted to president of Louis Vuitton Europe in 2006, succeeds Stéphane Baschiera. Baschiera, meanwhile, has been named managing director of LVMH-owned Champagne label Veuve Clicquot Ponsardin. Gallot, who will be based in Paris, reports to Gilles Hennessy, commercial executive vice president of Moët Hennessy Wines & Spirits.

• GALA HELD: The second annual perfumery industry gala for La Fondation Motrice, a foundation for re-search into cerebral palsy, took place Thursday night at the Observatory in Paris. One hundred and eighty people attended, including Andrea Casiraghi, the orga-nization’s patron, and Iman. At least 22 beauty compa-nies were represented. Fun-filled festivities high above Paris’ rooftops involved operatic performances, a magi-cian deft with disappearing tricks and combustion, plus a lively raffle.

SPONSORED BY

For information about attending, call 212.630.4947 or email [email protected]

For sponsorship information, call 212.630.4803 or email [email protected]

Stella McCartney Stella McCartney Ltd.

Marc JacobsMarc Jacobs International, Louis Vuitton

Martha StewartMartha Stewart Living Omnimedia Inc.

Ronald L. FraschSaks Inc.

Madonna BadgerBadger and Partners

Karen KatzNeiman Marcus Stores

Eric C. WisemanVF Corp.

Kevin A. PlankUnder Armour Inc.

Manny ChiricoPhillips-Van Heusen Corp.

Mindy C. MeadsAéropostale Inc.

Wesley R. Card Jones Apparel Group Inc.

John E. FlemingWal-Mart U.S.

CONFIRMED SPEAKERS INCLUDE

PLUS: Donna Karan, Donna Karan New York | Bruce Rockowitz, Li & Fung | Jeffrey Gennette and Julie Greiner, Macy’s Inc.James E. Glassman, J.P. Morgan Chase & Co. | Michael McNamara, MasterCard SpendingPulse | Christine M. Day, lululemon athletica inc. Susan M. Lyne, Gilt Groupe | Bonnie Brooks, Hudson’s Bay Company | Howard Tubin, RBC Capital Markets | Betsy McLaughlin, Hot Topic Inc. Matthew Katz, AlixPartners

The best ideas come from the smartest people

Page 1 Tuesday sACCESSORIES: David Yurman FASHION: s The … · 2015. 2. 18. · in a letter to ciT’s board, icahn said the loan would save the company $150 million in fees to prospective

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