fall boosts neiman marcus/2 h&m’s madonna deal/3 women… · screen with roles in the “the...

FALL BOOSTS NEIMAN MARCUS/2 H&M’S MADONNA DEAL/3Women’s Wear Daily • The Retailers’ Daily Newspaper • June 9, 2006 • $2.00

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NEW YORK — In what is already shaping up to be a jam-packed fall

fragrance season, the two highest-profi le unveilings of this week came

from Donna Karan, with the Donna Karan Gold women’s scent, and

Calvin Klein, with its highly anticipated Euphoria Men, the male follow-up

to last fall’s blockbuster Euphoria. Both entries will bow in October and

are expected to make a global splash. For more, see pages 8 and 9.

WWDFRIDAYBeauty

By Lisa LockwoodNEW YORK — So much for the love affair between Tommy and Karl.

After a much ballyhooed launch, Tommy Hilfiger Corp., which acquired Lagerfeld’s business in January 2005, pulled the plug on

Lagerfeld’s New York operation on Thursday.

Hilfiger, which was bought for $1.6 billion by Apax Partners last month, said it plans to consolidate the Lagerfeld operations into a sole Paris headquarters. As a

result, the highly anticipated Karl Lagerfeld women’s and men’s contemporary collection, based here, will be discontinued following its fall 2006 retail debut. The Paris headquarters will continue

A Slimmer Karl: Hilfiger Cuts Lagerfeld Contemporary Line, Staff

See Hilfi ger, 5

Metal MomentMetal MomentNEW YORK — In what is already shaping up to be a jam-packed fall

fragrance season, the two highest-profi le unveilings of this week came

from Donna Karan, with the Donna Karan Gold women’s scent, and

Calvin Klein, with its highly anticipated Euphoria Men, the male follow-up

to last fall’s blockbuster Euphoria. Both entries will bow in October and

are expected to make a global splash. For more, see pages 8 and 9.

WWD.COM2 WWD, FRIDAY, JUNE 9, 2006

FASHIONChristian Lacroix featured polkadots and fl orals, Moschino Cheap & Chic mixed nautical with vintage and Dana Buchman went with colorful and practical.

GENERALMadonna will wear H&M offstage for the rest of her concert tour and will trumpet the association in an ad campaign to break in August.

EYE: British actress Emily Blunt is poised to break out on the silver screen with roles in the “The Devil Wears Prada” and “Irresistible.”

BEAUTY: Donna Karan is determined to turn fragrance into gold with Donna Karan Gold, launching in 1,600 doors in the U.S. in October.

Following the blockbuster launch of Euphoria for Women, Calvin Klein Cosmetics will launch a men’s counterpart in October in 99 countries.

Swiss luxury group Richemont rode the luxury wave in the year ended March 31, as sales rose 17.4 percent to $5.25 billion.

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WWDFRIDAYBeauty

● SAKS APPOINTMENTS: Saks Fifth Avenue has promoted two top fashion executives. Michael Fink, senior women’s fashion director, has been named vice president and fashion director of women’s, and Michael Macko, senior men’s fashion director, has been named vice president and fashion director for men’s. Both are members of Fashion Group International, voting mem-bers of the Council of Fashion Designers of America, and sit on the Parsons The New School for Design’s senior jury. Fink at-tends fashion week shows in New York, Paris, Milan, London and India and works closely with the women’s buying. Macko is responsible for forecasting seasonal trends and analyzing and supporting the men’s fashion and men’s accessories selec-tion. Macko is on the Families Advisory Council of the Lower Manhattan Development Corp. as well as a member of the World Trade Center Memorial Advisory Council.

● ANOTHER PUMA: Puma inked a deal to open its second New York City store. It plans to open in a 4,000-square-foot space at 33 Union Square West, currently home to the Union Square Wine & Spirits shop. Puma, which has had its eye on Union Square for three years, expects to open the store in six months, said Steven Greenberg, president of The Greenberg Group, which represented Puma in the deal.

In Brief

Obituary........................................................................................18Classifi ed Advertisements.............................................................19

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“This is an American dream….I thank Barry [Schwartz] and Calvin [Klein] for opening up the world to me.’’

— Francisco Costa, winner of the 2006 CFDA

Womenswear Designer of the Year award

Quote of the Week

By David Moin

NEW YORK — The Neiman Marcus Group keeps rolling with the vibrant luxury market — from big Internet gains to positive reads on early fall selling.

Neiman’s on Thursday reported operating earnings of $151 million in the quarter ended April 29, compared with $134.7 million in the year-ago quarter, an increase of 12.1 percent.

Although net earnings dropped to $40.5 million for the quarter, from $79.8 million for the year-ago period, company executives explained it was primar-ily related to expenses from the sale of the Neiman Marcus Group last year to Texas Pacifi c Group and Warburg Pincus LLC. Citing interest costs and other special items and charges from the acquisition, exec-utives stressed the adjusted operating results were a truer indication of the company’s health.

TPG and Warburg Pincus completed the $5.1 billion acquisition of the then-publicly held Neiman Marcus Group in October. The retailer faces new challenges under private ownership and will be pressured to fi nd additional avenues of growth.

Burt Tansky, chair-man and chief executive officer, said during a conference call, “Sales remained very strong for the third quarter. Early fall deliveries are already checking very fast at both Neiman’s and Bergdorf ’s.”

There already has been reordering on some accessories, and some early fall apparel “looks like it will be re-orderable,” he said.

During the last quar-ter, sales were strongest in women’s apparel, es-pecially evening, cou-ture and dresses, as well as contemporary sportswear for men and women, precious jew-elry, and other men’s wear. “As always, we remain very focused on key items and catego-ries, including fi ne ap-parel, shoes, handbags, beauty, contemporary sportswear and jewelry, with increased capital for inventory and marketing,” Tansky said.

Same-store sales rose 6.8 percent during the quarter on top of a “very strong” 8 percent in the previous year, he said. Sales per square foot are tracking at $605 this fi scal year, compared with $567 a year ago — and exceeding $600 for the fi rst time.

Overall, the company’s sales and margins are being lifted by improving full-price selling, higher ticket prices, on average, fi nding ways to leverage expenses, as well as hefty growth on the Internet. With Bergdorf Goodman, which started online transactions 18 months ago, “We are shipping merchandise to all 50 states,” Tansky said. “That gives us terrifi c comfort and shows the power of the brand. We assumed most of the business would come from the New York tristate area. It turns out that around 67 percent is coming from outside the New York area.”

The biggest spenders at NMG are those shop-pers that utilize all three channels: stores, cata-logues and Internet, said James Skinner, senior vice president and chief fi nancial offi cer.

Bergdorf ’s high sales gains on the Internet are encouraging NMG to consider opening more BG stores, possibly in Las Vegas and elsewhere. BG’s expansion potential — it only operates in Manhattan — has been debated inside the corpo-ration for decades.

Asked about Bergdorf ’s growth, Tansky replied: “We have nothing specifi c to talk about. We explore all ideas and opportunities for all our businesses.”

On a different front, the company is developing a scaled-down retail prototype to sell contempo-rary merchandise, possibly 30,000 square feet in size, although few details have been disclosed.

Tansky was more open discussing conventional store openings, saying that a 90,000-square-foot

unit will open in Princeton, N.J., in spring 2010, in the Quaker Bridge Mall. “We have a full calendar of store openings for the next few years,” Tansky said. Other openings previously announced are in Charlotte, N.C., in fall 2006; Austin, Tex., spring 2007; Natick, Mass., fall 2007; Oyster Bay, N.Y., and West Los Angeles, in fall 2008.

With store openings, Tansky said, “We are very, very disciplined.” Any potential site must pass “demographic and psychographic tests.”

Princeton made sense because there is “clearly a gap” between Neiman’s Philadelphia and Short Hills, N.J., units, he said. “Many customers were coming up from the Princeton area to shop Short Hills.” Princeton’s high income demographics, growing pharmaceutical and fi nancial industries and Princeton University provide a base for luxu-ry sales, Tansky said.

Neiman’s is also actively renovating stores, to update aging properties and offset the im-

pact of competitors such as Nordstrom, Bloomingdale’s and Barneys New York.

“We have completed or are in the fi nal stages of several important re-models,” Tansky said. He cited the San Francisco store on Union Square, which added 50,000 square feet, bringing it to 250,000 square feet, among other projects. The Last Call clearance center at Sawgrass Mills in Florida expanded to 45,000 square feet from 25,000, establishing it as Neiman’s largest Last Call.

He also mentioned Berg dorf ’s, where most fl oors have been reno-vated and work is under way on its third level. BG had a 14.3 percent sales gain in the quarter. The company did not break out its sales volume.

Barneys’ emerging fl agship strategy, which includes a recent open-ing in Boston, as well as upcoming openings in Dallas and Las Vegas, poses a threat to Neiman, which Tansky addressed. “We are watching their development very care-

fully with great interest,’’ he said. “So far, we have not felt any dramatic impact. We are geared up and prepared, and we know we have a very loyal cus-tomer base in these locations and we will continue to do well.”

For the 13 weeks ended April 29, NMG’s total revenues came to $1 billion versus $933.4 million in the year-ago period, and same-store sales revenues increased 6.8 percent. On a non-adjusted basis, operating earnings were $132.7 million compared with $134.7 million for the year-ago quarter.

For the 39-week period, adjusted operating earnings were $413.4 million compared with $379.5 million, an increase of 8.9 percent. Total revenues were $3.2 billion versus $3 billion, same-store sales revenues increased 7.1 percent, and operating earnings were $309.3 million against $364.2 million.

At the time of the acquisition, Neiman’s reval-ued its assets, including customer lists, leases and benefi t plans, leading to non-cash charges. The amortization of customer lists, favorable lease com-mitments and benefi t plans came to $18.2 million in the last quarter and $42 million in the 39 weeks. Interest expense in the quarter came to $67.2 mil-lion, versus $2.9 million in the year-ago quarter.

The company also recorded its highest-ever third-quarter gross margin rate of 41.6 percent, a 30 basis point improvement from last year.

Neiman Marcus and Bergdorf Goodman stores combined registered $804.2 million in sales for the quarter, against $766.9 million a year ago. Direct marketing sales, including catalogue and online, came to $152 million, representing a 16.5 percent increase over $130.5 million in the year ago. Internet alone posted $97 million in sales, for a 31 percent increase over last year.

Early Run on Fall Boosts Neiman’s

WWD.COM3WWD, FRIDAY, JUNE 9, 2006

Madonna to Don H&M Duds on Tour

NEW YORK — J. Crew Group Inc. con-tinued its winning ways through the spring season with its preppy, quirky and colorful styles.

The company reported growth in profi ts and sales for the fi rst quarter ended April 29, including a 23 percent gain in operating income to $28 million from $23 million in the year-ago period. Net income rose 60 percent to $8 million from $5 million.

Selling was strong as same-store sales increased 12 percent for the quar-ter. The double-digit boost came after a 37 percent comps jump in the year-ago period. Total revenues for the 13 weeks increased 14 percent to $240 million from $211 million.

J. Crew has been in turnaround mode under the leadership of Millard Drexler, chairman and chief executive officer, and Jeff Pfeifl e, president. With results continuing to be strong, the likelihood

increases that the fi rm will launch an ini-tial public offering, possibly this year.

The retailer provided a breakdown by division, indicating that store sales, including outlets, gained 15 percent to $167 million from $146 million. Direct

sales, which include Internet and cata-logue results, increased 12 percent to $66 million from $59 million.

Gross margin fell slightly to 45 percent in the quarter, compared with 46 percent in the year-ago quarter. Selling, general

and administrative expenses rose to $81 million, from $74 million, but decreased as a percentage of sales to 34 percent from 35 percent in the 2005 quarter. Interest ex-pense rose to $19 million in the fi rst quar-ter from $17 million in the year-ago period primarily as a result of a gain in noncash preferred stock dividends, the fi rm said.

In addition, two new formats, includ-ing the Crewcuts children’s business and Madewell, a casual sportswear business, are being rolled out. Potential investors like to see that a company has growth potential by launching new businesses. Madewell is a women’s-only, item-driven line focused on “timeless and ageless” ca-sual merchandise priced 20 to 30 percent lower than J. Crew. The fi rst Madewell store will open in NorthPark Center in Dallas in August. The fi rst Crewcuts chil-dren’s store opened in NorthPark Center last month.

J. Crew, which is owned by the Texas Pacifi c Group, operates 164 stores and 45 outlets as well as the J. Crew catalogues and Web site.

— David Moin

Strong Sales Buoy J. Crew Net 60% in First Quarter

By Robert Murphy

PARIS — The Material Girl likes cheap and chic as much as couture.

At least, that is the inference to be made after Hennes & Mauritz on Thurs-day said the high-voltage singer and her dancers — decked out in Jean Paul Gaultier regalia on stage — would wear the Swedish fi rm’s clothes off stage for the remainder of her “Confessions” world tour. This confi rms a WWD report June 2 that a deal was brewing between Madonna and H&M.

In addition to wearing H&M, Madonna has collaborated on a “specially designed Madonna tracksuit” that will be sold in H&M stores starting in mid-August.

The singer and her troupe will trum-pet the association in an advertising campaign that is scheduled to break in August. H&M declined to name the pho-tographer of the campaign.

“Partnering with H&M feels like a perfect fi t,” Madonna said in a statement. “We’ll all get to express ourselves in our own individual ways. The dancers and I are excited to go shopping together.”

The tie-up is the latest of H&M’s high-profi le associations aimed to generate buzz and elevate the fi rm’s image for inexpensive, trendy clothes to higher levels of creativity. In the last two years, H&M has worked with Karl Lagerfeld and Stella McCartney on popular one-off fashion collections that brought droves of shoppers into the stores.

Perpetuating that strategy, Dutch de-

signers Viktor Horsting and Rolf Snoeren, two of fashion’s most conceptual minds, were hired to design a collection that will be introduced in H&M stores this fall.

Working with a celebrity of Madonna’s caliber signals that H&M is willing to take its strategy for publicity-generating ploys into new territory.

“This is a thrill for H&M,” the retailer’s head of design, Margareta van den Bosch, said in a statement. “Aside from being great fans of Madonna’s music and fash-ion sense, we admire her ability to always be ahead of the trends in everything she does. We look forward to seeing how her touring family translates H&M’s seasonal

trends to their own personal looks.”But while H&M has been generat-

ing lots of buzz recently with its one-off collaborations, sales have decelerated. Comparable-store sales advanced a slow-er-than-expected 1 percent in April, after falling 8 percent in March.

The Madonna operation should give H&M momentum during the apex of sum-mer, even as it faces increasingly stiff competition from the likes of Zara and Mango, both based in Spain.

An H&M spokeswoman said Madonna and her performers had been supplied with one H&M outfi t so far: a T-shirt, a hooded jacket and jeans. The ensembles carry the label: “Madonna + Crew Loves H&M,” the spokeswoman said.

She added that Madonna and her dancers would choose clothes on two upcoming occasions, in New York and in London, to complete their wardrobes.

As for the tracksuit, Madonna met with members of H&M’s creative studio to discuss its design. “Madonna was part of the process of its creation,” said the spokeswoman.

The H&M effort isn’t Madonna’s fi rst link with fashion. Apart from appear-ing on red carpets the world over, the singer has appeared in ad campaigns for Versace and Gap.

Madonna’s appearance in an H&M ad isn’t the fi rst time the Swedish retailer has used a high-profi le personality in its campaigns. Past ads in Europe have included actors Chloë Sevigny, Geena Davis, Johnny Depp and Gary Oldman.

By Sandra Nygard

NEW YORK — On the heels of winning Swarovski’s Perry Ellis Award for Menswear, Trovata said Thursday that it is losing one founding member of its four-person design team. Josia Lamberto-Egan will be leav-ing his daily duties as product director at the contemporary brand in about two weeks.

The basis for his decision involves love and logistics: Lam-berto-Egan plans to move to Seattle to continue his 12-year relationship with partner Maria Matijasevic, a physician who will be completing her residency at the Swedish Medical Center there.

“I’m walking away from the

drudgery part of my job,” said Lamberto-Egan of his produc-tion duties, which often involved working directly with factories and managing delivery sched-ules. “Our goal is for me to be involved in the stuff that I enjoy being a part of and where I’ll have the most value added.”

Lamberto-Egan said he will continue to be a shareholder in Trovata and have a hand in the overall business and creative strategies of the brand. He will also continue to contribute to the crafty marketing materials. “It’ll be fun to have more time to spend on those things,” he said.

The four-year-old Newport Beach, Calif., men’s and women’s label that includes Jeff Halmos, John Whitledge and Sam Shipley

has been the recent darling of re-tailers and industry awards alike. In addition to its latest win at the 2006 CFDA Fashion Awards on Monday night, the brand was a re-cipient of both the Ecco Domani Fashion Foundation grant and the CFDA/ Vogue Fashion Fund prize last year.

Although the team already knew on Monday evening that Lamberto-Egan was leaving, they decided to share the news with only a select few, including men-tors from the CFDA as well as others who were instrumental in the nomination. “It was a delicate situation, so we didn’t want to make the news completely pub-lic. We fi gured since I was still working for the company, there was no sense in jumping the

gun,” Lamberto-Egan explained.Halmos, who handles sales

and press for the label known for its casual, preppie looks, said the company has made three hires in the last two months and that Lamberto-Egan has been training some of the new staff to take over duties for him. “We’re going to miss him, but the bot-tom line is it’s life and that’s how it goes,” said Halmo. “We knew this was a possibility and we’ve been preparing for this.”

Halmos said the company sought to add one more produc-tion person, but was not look-ing to hire a senior production director from a large company to replace Lamberto-Egan. “We already have some very capable people here,” he said.

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Madonna on tour, and in the Gap ad campaign with Missy Elliott.

Josia Lamberto-Egan Exiting Trovata Josia Lamberto-Egan

WWD.COM

A brigade of foreigners hit Los Angeles over the last week for a series of fashion events that had the bubbly fl owing. First, locals fi lled a Hollywood Hills mansion for the offi cial unveiling of Karl Lagerfeld’s second collaboration with Dom Pérignon — an ad campaign for Rosé Vintage 1996 photographed by Lagerfeld himself and starring Eva Herzigova. “I never do the same thing twice so we came to Hollywood, which I love this time of year,” the designer said. “The air. The sun. I love driving around in a convertible, especially because spring in Europe was so unpleasant this year.”

Despite a feuding Lindsay Lohan, Paris Hilton and Brandon Davis circulating throughout the party, it went off without a hitch. Devendra Banhart performed “Diamonds Are Forever,” while guests, including Brittany Murphy and a svelte-again Jared Leto looked on. Though the likes of Courtney Love, Maria Bello and Jessica Simpson had come to air-kiss Lagerfeld, others had ulterior motives. “When I saw on the invitation that they’d be serving free Dom all night,” explained Thora Birch, “I knew it would be worth getting dressed for even if I end up on another worst-dressed list.”

Then on Monday, Kelly Lynch drew a crowd to her midcentury aerie in Los Feliz for a Vogue-hosted lunch honoring James Ferragamo. The dashing scion basked in the company of actresses Anjelica Huston, Ever Carradine, Lake Bell, Michele Hicks and Samaire Armstrong while the women

set about choosing swatches of python, satin and leather to customize their own pair of shoes. “I really should be a designer,” mused Shiva Rose McDermott. “Sometimes the acting thing is so heart-wrenching, whereas fashion is always fun.”

Meanwhile, across town at a nine-acre Brentwood estate, another Italian was discovering the joys of showing off her wares. Nicola Maramotti of Max Mara breezed into town to act as honorary chair for the Colleague Helpers luncheon, and then was toasted at a dinner later that night. “What great taste everyone in Los Angeles has,” Maramotti marveled. “I had no idea.” To be sure, her fi rst Los Angeles experience skewed toward the glamorous. The next night, she presented Bello with the Max Mara award at the Women in Film gala, then watched Jennifer Lopez, Geena Davis and Edie Falco accept awards in her dresses.

Meanwhile in New York, a scant 24 hours after the CFDA Awards, the swells were out again Tuesday night to honor Joan Tisch and Sarah Jessica Parker at the MoMA’s annual Party in the Garden. Angelenos Steve and Jamie Tisch and Mike Ovitz joined guests including Mayor Michael Bloomberg, Marie-Josée Kravis, Barry Diller, Clarissa and Edgar Bronfman, Veronica Hearst, Aerin and Jane Lauder, Samantha Boardman and Jeff Koons for the Gucci-sponsored

affair. Parker swanned in wearing a frock designed specially for her by Frida Giannini. “I usually can’t wear Gucci because I’m short, you know their long dresses with big slits,” she said. Her pal, Jessica Seinfeld, also lamented her height as she showed off her Giambattista Valli number. “It was big and I made it small,” she said. “It wasn’t made for a short Jewish girl like me.”

4 WWD, FRIDAY, JUNE 9, 2006

NEW YORK — Though she is poised to break out onto American cinematic screens with roles in the upcoming “The Devil Wears Prada” and “Irresistible” with Susan Sarandon, British actress Emily Blunt is far from a starry-eyed ingenue.

“I was going to go and do something sensible in university, but it sort of landed in my lap, this job, this occupation, and it was a golden opportunity,” she explains via telephone from London. “You don’t turn your back on it, and I’m very glad I didn’t because what the hell would I do right now? I’d be completely unemployable.”

Clearly she made the right career choice given her busy schedule, including Stephen Poliakoff’s BBC fi lm “Gideon’s Daughter,” which had a special screening at the Museum of Television and Radio Thursday night.

Set in late-Nineties Britain on the brink of Princess Diana’s death, the fi lm follows publicist Gideon Warner (Bill Nighy) as he becomes increasingly aloof from his high-gloss world. The 22-year-old Blunt plays his daughter, Natasha, whose impending high school graduation brings to the fore the seemingly insurmountable riff that has grown between the two since the childhood loss of her mother.

The actress was drawn to the project by Poliakoff’s nuanced take on the troubled parent-adolescent interactions. Indeed, as Natasha, Blunt spends much of “Gideon” exuding an impenetrable cool toward her concerned, but equally reticent, father. It is a performance that might not endear her to audiences.

“My boyfriend was like, ‘I hated you in that because you were so mean!’” laughs Blunt of musician boyfriend Michael Bublé’s reaction.

It’s not the fi rst time the actress’ performance has elicited such a heated reaction. As Tamsin in last year’s “My Summer of Love,” Pawel Pawlikowski’s exploration of two teenaged girls’ mutual infatuation, Blunt was seen by many as evil-mindedly manipulating the object of her affection.

“I don’t know why that’s kind of happened,” she exclaims of playing unlikable roles. “And it’s weird because I’m actually quite an open person and I’m not really mysterious. But I like those kinds of characters when they seem a bit more unreadable.”

The trend will continue with “The Devils Wears Prada,” in which Blunt plays to perfection Miranda Priestly’s (Meryl Streep) fashion-obsessed senior assistant Emily, a character she describes as “your worst nightmare for a blind date — just excruciating to be around.”

But while Blunt acts the ideal fashion obsessive in the fi lm, she’s only reluctantly learning to play the fashion game herself in real life.

“I guess you have to become somebody who’s good at doing the red carpet,” she says. “That’s what I’m gonna have to do,” she says with a sigh. “Because my idea of a great night out is a game of Scrabble and a glass of red wine. But I’m gonna have to get over myself.”

— Vanessa Lawrence

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Ever Carradine and Michele Hicks

Nicola Maramotti

Jennifer Lopez and Maria Bello

Eva Herzigova and Karl Lagerfeld in the spotlight.

Renée Rockefeller in Tuleh, Jennifer Creel in Rochas and Jamie Tisch in Carolina Herrera.

Jessica Seinfeld in Giambattista Valli and Sarah

Jessica Parker in Gucci.

Thora Birch

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INTRODUCING


Destination GameChristian Lacroix described his latest collection as a cruise along the Guadalquivir river in Seville, Spain, and the fl amenco inspiration was clear in the bold polkadot and fl oral prints on silk dresses. Flowers popped and bright fuchsia, blue and yellow embroidery alluded to a bullfi ghter’s cape. Strong colors were contrasted with neutrals such as camel-colored cotton piqué suits and dark blue denim.

Meanwhile, at Moschino Cheap & Chic, designer Francesca Rubino mixed a modern nautical palette into the line’s signature

vintage whimsy. Sweet gingham plaid showed up on skirts and trenches, and dresses and jackets were cinched with grosgrain ribbon.

And Dana Buchman worked a mixture of fabrics and textures into loose tunics, skirts and dresses, creating appealing, practical looks. The designer also worked contrasts with colors such as teal and concord, and with animal prints, a Buchman staple, which showed up on trenches and skirts.

Christian Lacroix Christian Lacroix

Moschino Cheap & Chic

ZAC ON FILM: With resort becoming a season of ever-grander statements from major houses, even designers with smaller operations are feeling the need for a little showmanship. For his fourth resort collection, Zac Posen collaborated with his friend and sometime muse Lola Schnabel to create a dreamy short movie, called “Ma Vendeuse,” which will make its debut Monday on Style.com. “Clothing always looks good on fi lm,” says Posen. “And it’s a newer way to present the collection.”

The three-minute short is narrated by Schnabel’s maternal grandmother, Anne Beaurang. It stars model Leilani Bishop and artist/model Raina Hamner, dressed in Posen’s new resort offerings and cavorting in various locations in Montauk, Amagansett and Bridgehampton.

It’s the fi rst original fi lm to appear on the Web site, but probably not the last. “Style.com is up for multimedia,” says executive fashion director Candy Pratts Price. “So any way that I can get it going live and in action is great.” She added, “This has a very Warhol in the ‘Grey Gardens’ feel to it. And you get a lot of information in there without it being a music video.” — Meenal Mistry

CRUISING ALONG: For the fashion set, cruise is just another season on the calendar, rarely connoting the luxury liners that fi ll the pages of vacation brochures. The spirit of both, however, is very much the same: one of leisure, wanderlust and high times.

In the new book, “Cruise: Identity, Design and Culture,” Peter Quartermaine and Bruce Peter explore the many faces of the cruising lifestyle and its history, as well as ship design, cuisine and, through the many photographs and illustrations, fashion. A bevy of Sixties beauties, for example, are dolled up in furs and fancy frocks, lounging on the deck with their tuxedoed men. There are also, of course, bathing suits galore from every era.

“[The ships] are these strange fl oating communities,” says Quartermaine, who spearheaded the project. “They’re moving around the world, touching on various continents for a day and setting sail again. And there’s the aspect of celebrity — not celebrity in the sense of fi lm stars, but people themselves becoming celebrated for a limited period.”

A few of the choice tidbits gleaned from the glossy, 144-page read: British passengers prefer to stay longer at sea, while Americans favor stopping at a port each day; Caronia, the fi rst-class, mid-century liner, had one guest who stayed for 14-and-a-half years — the excursion cost her $2.5 million. — Venessa Lau

WORLD TRAVELERS: Jules Verne wrote about it, Jackie Chan spoofed it, and a 1956 fl ick about it, starring British actor David Niven, garnered fi ve Oscars. This summer, 19 London artists are the latest to tackle the subject of traveling around the world in 80 days in a two-month exhibition titled — what else? — “Around the World in Eighty Days.” The exhibition is being held simultaneously at the city’s Institute of Contemporary Arts and South London Gallery, where it’s accompanied by a program of fi lms, dance, music performances and even a club night, all of which are loosely inspired by Verne’s seminal 1872 novel.

The show, which runs through July 16, features works from local artists such as Erika Tan, Mona Hatoum, Runa Islam and Alexandre da Cunha, who all hail from different countries. “The issues these artists tried to address — traveling, globalization, technological change — are ones that come up in the book,” says Jens Hoffmann, director of exhibitions at the ICA. “At the time it was written, there were lots of things happening in the world, like the opening of the Suez Canal, that, in a way, made our world smaller. We thought it would be quite interesting for looking at our world today.”

Brazilian native da Cunha, for example, replaced a series of national fl ags with souvenir beach towels for a commentary on traditional colonialism and tourism now, while the Lebanese Hatoum created a map of the world from thousands of glass marbles. “There are all these metaphors,” says Hoffmann. “The marbles are dangerous, fragile and, not being glued to the fl oor, the borders and continents shift.

“And it really happens,” he adds with a chuckle. “All of a sudden, the tip of South America is gone.” — V.L.


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Resort Report

A still from “Ma Vendeuse.”

A close-up of Mona Hatoum’s “Map.”

Moschino Cheap & Chic

Dana Buchman

Dana Buchman

NEW YORK — Ever the alchemist, Donna Karan is de-termined to turn fragrance into gold. “Our aim was to launch another classic,” said the designer of Donna Karan Gold, her new women’s fragrance, which is slated for an October launch. “And we wanted iconic elements — gold has always been part of the Donna Karan signature. Gold is very elemental and pure —it is warm, it is sexy, and it lasts for a lifetime.”

To celebrate the fragrance launch, Karan hosted a dinner Wednesday night at her Greenwich Street space here, the former studio of her late artist hus-band, Stephan Weiss.

The fragrance concept inspired a gold moment for Karan’s signature apparel pieces — including jump-suits, dresses and jerseys — with gold-toned accents by Robert Lee Morris.

Fabrice Weber, president of the Aramis and Designer Fragrances division at the Estée Lauder Cos., said that the company will be looking both in the U.S. and abroad for Gold sales: “Historically, the Donna Karan fragrance brand — with Cashmere Mist — has been strongest in the U.S., while the DKNY fragrance franchise was stronger abroad,” he said, noting that 2004’s DKNY Be Delicious women’s scent (followed by a men’s version in 2005) helped strength-en the DKNY fragrance franchise domestically. “With the launch of Gold, we are going to attempt our sec-ond global blockbuster.”

Veronique Gabai-Pinsky, senior vice president and general manager of Aramis and Designer Fragrances, called Gold “a project with Donna’s signature.”

“Donna has always been known for her use of black and gold, and sophisticated scents,” said Gabai-Pinsky. “This fragrance is Donna’s vision of femininity, done in a different, modern way.” And different was precisely what Karan wanted. “Donna was very clear — her point of view is that either it’s something, or something else, never something in the middle.”

The Gold juice is unabashedly sexy, built around a heart of Karan’s favorite Casablanca lilies, said Trudi Loren, vice president of corpo-rate fragrance development, who concocted the fragrance in cooperation with Quest. The lilies are combined with fl uid amber, sparkling acacia, white clove, jasmine templar, golden blossom and East Indian patchouli.

Gold will be available in three concentrations: eaux de parfum in two sizes, 1.7 oz. for $75 and 3.4 oz. for $95, as well as a 0.2-oz. rollerball for $50; eaux de toilette in three sizes, 1 oz. for $45, 1.7 oz. for $65 and 3.4 oz. for $85, and a 0.5-oz. perfume, $285.

The jewel-like packaging, designed by Morris, differs for each of the versions. Eaux de parfum are packaged in amber glass bottles with gold-toned

metal sleeves; eaux de toilette, in amber glass bottles with ebony wood caps, and perfume, in glass bottles completely cov-ered with hammered gold-toned metal.

“Robert is known for his work in gold jewelry, and Donna loves tactile things,” said Diane Kim, vice president of glob-al marketing for Aramis and Designer Fragrances.

“The bottle design is a collaboration between two people who have worked together for a long time,” said Karan. Morris has long designed Karan’s jewelry line. Karan’s fragrance bottles had been designed by Weiss, prior to his death in June 2001.

Gold will be available in 1,600 U.S. department and specialty stores, as well as in Karan’s freestanding stores. While none of the executives would comment on fi rst-year sales or adver-tising spending, industry sources es-timated that the fragrance would do between $15 million and $20 million at retail in the U.S. in its fi rst year on counter, and said about $3 million to $5 million would be spent on advertising and promotion. Globally, it could do as much as $60 million to $65 million in net sales, said sources.

National print advertising will break in October fashion, beauty and lifestyle magazines. They will include gatefolds, spreads and scented strips, said Carol Russo, senior vice president and general manager of sales and mar-keting, North America, for Aramis and Designer Fragrances.

— Julie Naughton

PARIS — At Parfums Nina Ricci, the apple doesn’t fall far from the tree.

The fashion brand’s latest fragrance, called Nina, comes in an apple-shaped bottle reminiscent of the fl acon for its 1952 scent Fille d’Eve. The new entrant, created by Puig Beauty and Fashion Group — owner of the Ricci label — is meant to broaden the brand’s core audience to a younger demographic, aged 18 to 35.

“This is a generation aware of prestige brands,” said Margerie Barbes-Petit, brand director at Parfums Nina Ricci. “This is a key target to ensure the brand’s future via renewal of consumers.”

Company executives say the fragrance’s launch is also intended to capitalize on Nina Ricci’s growing fashion momentum worldwide, thanks to artistic direc-tor Lars Nilsson, who joined the company in 2003.

“After struggling for years with its fashion direction, Nina Ricci has now found it,” said Jose Manuel Albesa, vice president of international brands for Puig Beauty and Fashion Group.

While creating Nina, Puig executives reviewed Nina Ricci’s traditional brand values, including fantasy, as well as the brand’s icons, such as apples and fl owers.

Puig executives say Nina was designed to embody accessible luxury. For instance, its bottle is of heavy glass, but the product sells at price points in just the 29 euros, or $37, to 55 euros, or $71, range.

In a fi rst for Nina Ricci, known for its fl oral fra-grances, Nina belongs to the fl oral gourmand fam-ily. The scent’s juice contains toffee apple notes — used for the fi rst time in fra-grance, according to Firmenich’s Olivier Cresp, who concoct-ed the scent with Jacques Cavallier.

Top notes include Calabrian lemon and caipirinha lime. Heart notes are made of toffee apple, peony and moonfl ower. And there are base notes of apple wood and white cedar.

“The bottle was our inspiration” for the juice, said Cresp, adding it gave the perfumers the idea to include apple notes with a slightly acidic accord and tof-fee notes for a sugary, gourmand scent.

Nina’s bottle, designed by Jérôme Faillant-Dumas, has a modern vintage look. Its rose-colored glass fea-tures a silver-colored cap and a leaf that discreetly has the brand’s signature etched into it.

Television advertising for the scent, shot by Spanish fashion photographer Eugenio Recuenco, shows a young woman falling under Nina’s enchantment. Ukrainian model Ruslna Korshunova, wearing a Lars Nilsson dress, enters a large Parisian apartment. Her eye catches Nina’s rose-hued bottle hanging from a silver-colored tree, and she climbs up a pyramid of apples to pluck it. Twenty-sec-ond versions of the clip will bow on television in France and the U.K. this fall. And, for the fi rst time, Nina Ricci is to launch a version destined for movie theaters across France next year. Print advertising featuring Korshunova and tree images will come in single and double pages.

Nina Ricci plans to “create theater in-store,” said Barbes-Petit. Merchandising will include large sil-ver-colored trees with Nina bottles hanging off their branches. Sampling is to feature apple-shaped wands.

Puig executives said Nina’s launch will be Nina Ricci’s biggest since Puig acquired the brand in 1998. While not discussing numbers, they said they hope the fragrance will be as successful as Nina Ricci’s bestsell-ing L’Air du Temps scent.

Industry sources estimate Nina will generate up to 60 million euros, or $77.1 million, in fi rst-year retail sales worldwide.

Nina comes in 80-, 50- and 30-ml. versions for 55 euros, 45 euros and 29 euros, or $71, $58 and $37, re-spectively. The products in the ancillary line include a 200-ml. shower gel, 200-ml. body lotion and 200-ml. deodorant spray, each selling for 19 euros, or $24.

The scent will launch in France in July, then be rolled out to Europe, Asia and the Middle East in September. The U.S. and Canada are slated to get the fragrance in 2007.

— Ellen Groves

The Nina ad.


The Beauty Report

New Nina Ricci Scent Aimed at Younger Set

Donna Karan Goes for Gold

The Donna Karan Gold ad.

Leonard Lauder and Donna Karan; William Lauder and Veronique Gabai-Pinsky

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9WWD, FRIDAY, JUNE 9, 2006

WWD.COM

Another Euphoric Moment for Calvin KleinNEW YORK — Calvin Klein is planning on a second hit of Euphoria for fall.

Following the blockbuster launch of Euphoria for Women, Calvin Klein Cosmetics will launch a men’s coun-terpart in October — and Calvin Klein men’s wear designer Italo Zucchelli hosted a gala dinner Tuesday night at the Top of the Rock here to celebrate.

“This is a great moment for the brand,” said Zucchelli, adding, “the soul of the perfume is masculine and sexy.”

“Calvin Klein, the largest brand in the Coty Prestige portfolio, is experi-encing tremendous momentum,” added Catherine Walsh, senior vice president worldwide of American fragrances for Coty Prestige. “Today the brand is see-ing double-digit growth driven by our core fragrances and the phenomenal suc-cess of Euphoria. With the launch of its sexy new partner, Euphoria Men, we ex-pect the Euphoria franchise to be a top-ranking global player and the next great Calvin Klein classic.”

Indeed, last fall, Euphoria for Women took the industry by complete surprise. Few observers were optimistic about the fragrance’s chances before the launch, particularly in light of past setbacks, like the Crave men’s scent. So when

Euphoria shot to the top of the ranking last fall, generating an estimated $50 million in U.S. retail sales in less than a year, it resuscitated the entire brand.

Euphoria Men, a fresh Oriental, was

created by fragrance consultant Ann Gottlieb, working with International Flavors & Fragrances. Top notes are of ginger pepper cocktail, raindrop accord and chilled sudachi; the heart is of black basil, cedar leaf and hydroponic sage, and the drydown is of creamy suede, addictive patchouli, Brazilian redwood and solid amber.

The collection will include eaux de toilette in two sizes, 1.7 oz. for $42 and 3.4 oz. for $62, as well as a 3.4-oz. aftershave, $40; a 6.7-oz. aftershave balm, $40; a 6.7-oz. body wash, $20, and a 2.6-oz. deodor-ant, $16. The bottle, designed by Klein and Fabien Baron, is a heavy glass square encased in a silver-toned metal sleeve with an aluminum cap. The outer carton packaging is matte platinum bronze.

Euphoria Men will be available in about 2,200 U.S. department and spe-cialty store doors, and will be launched in an additional 98 countries simultane-ously, said Lori Singer, vice president of global marketing for Coty Prestige. Also, Singer noted, there will be contin-ued support of the women’s scent as the men’s juice is rolled out.

While none of the executives would comment on projected fi rst-year sales or advertising and promotional spend-

ing, industry sources estimated that Euphoria for Men would do about $30 million in fi rst-year retail sales in the U.S., and that about $15 million would be spent on advertising and promotion in that time frame. “This is a nonpro-motional launch,” said Dennis Keogh, senior vice president of U.S. marketing for Coty Prestige. “We have high hopes for this fragrance and will spend ac-cordingly.”

The brand plans both TV and nation-al print advertising, featuring Andrew Stetson and Euphoria for Women model Natalia Vodianova. Baron served as cre-ative director for both campaigns, and the print ads were shot by Steven Meisel in New York earlier this month.

The TV campaign was shot in Kauai, Hawaii, earlier this year. TV ads will run at launch and for the Christmas holi-days; national print advertising begins in October men’s, fashion and lifestyle magazines.

Sampling plans include scented strips, vials on card and LiquaTouch pieces, aimed at disseminating more than 60 million scented impressions, said Susan Kelly, director of global mar-keting for Coty Prestige.

— Julie Naughton

PARIS — Weleda France is showing its colors.

Responding to increas-ing competition in natural cosmetics in France, the Arlesheim, Switzerland-based skin care brand un-veiled its fi rst freestanding store anywhere, in Paris, last week. It features an eye-catching rainbow of stripes around its doorway.

The linear exterior de-sign of the Avenue Franklin Roosevelt boutique is intended to contrast with the rounded, softer harmonious shapes inside. Architect Maryam Ashford-Brown created the 3,230-square-foot store to be a haven of nature in the heart of Paris, with plants, oak wood and walls of Breton granite.

Sales spiked 50 percent last year, to 38 million euros, or $49 million at cur-rent exchange, as consumers increasingly turn to natural and organic products. Weleda France, a fully owned subsidiary of Weleda AG, also has found that sec-tor increasingly crowded. “Our competitors are being active, and new organic brands are springing up,” said Sarah Dierdorf, manager of Espace Weleda. “We thought as it’s been 80 years since we’ve been in France, and since we’ve been faithful to this [natural] philosophy, it’s unfair if others take away our market share, simply because we’re less visible.”

Weleda spent 700,000 euros, or $901,430, of its 2.5 million euros, or $3.2 mil-lion, global communication budget to create the store. Its purpose is primarily that of a showroom, to communicate the brand’s image.

Upon entering, visitors are greeted with a vertical garden, designed by Patrick Blanc, with a water fountain at its base. Adjacent, giant-sized tumblers, like those used in Weleda’s laboratories, display the plant essences upon which its skin care products are based.

The opposite wall features the brand’s 90 stockkeeping units. Each collection is lit by lamps decorated with a drawing of their main plant ingredients, either an iris, a rose, arnica or calendula, by Greek artist Ianna Andréadis.

A sliding glass door, embellished with a pattern of iris fl owers by Japanese stylist Shu Moriyama to evoke a fi eld when it is moved, separates the bou-tique from a space for facial treatments. Two adjacent spacious treatment rooms, in wood with adjustable color lighting and wooden beds, are for body massages. Treatments range from 26 euros, or $33, for a 20-minute hand mas-sage to 120 euros, or $155, for a one-hour, 45-minute full-body “harmony” and face massage.

“Weleda’s aim is to democratize — that is, make natural cosmetics affordable for everyone,” explained Olaf Maurice, Weleda France’s commercial manager. “The treatment tariffs are lower than many, given the prestige of the center.”

Upstairs, the brand has created a balcony area to host concerts and exhibi-tions and an adjacent space, with daylight pouring through a glass-brick ceiling, will host massage workshops. The store will be closed to the public on Mondays for professional training.

To avoid taking business away from the brand’s existing points of sale, the products’ price positioning is in the middle of the range of Weleda’s French sales points, mostly pharmacy doors, explained Dierdorf.

While executives declined to discuss sales forecasts, industry sources say they believe the store, which took seven months to complete, will generate 50,000 euros, or $64,390, in fi rst-year sales.

— Ellen Groves

Weleda: Nature in the Heart of ParisNEW YORK — For years, Vera Wang has been the undisputed champ of the wedding world — launching apparel, fragrances, tabletop items and even mattresses bearing her name.

Now, with her newest scent, she’s tar-geting a hip junior market in an effort to create a new division and uncover a new dimension for her famous brand.

The fragrance, Princess, is de-signed to appeal to 18- to 24-year-olds, although “there’s no age limit for a princess,” said Laura Lee Miller, pres-ident of Vera Wang Licensing.

“This is a somewhat whimsical, lighthearted and aspirational scent, which is part of our strategy as a company. We are targeting younger women, those who aren’t nec-essarily looking for a wed-ding gown. We’re hoping to, eventually, launch a ready-to-wear collection, as well as accessories, that are more whimsical and femi-nine — and more accessible to younger consumers.”

And the designer has a built-in focus group at home: two teenage daughters, ages 13 and 15. “It came about with me being a soccer mom and driving my kids and all their friends around town and to the beach,” said Wang during an interview at her Upper East Side home here. “And I was thinking of a new fragrance, and I started talk-ing to them — they have all come to the age where they are very fashion-conscious. You should see my bills from Marc Jacobs,” said Wang dryly. “Suddenly, out of nowhere, was this surge of wanting to have bags and shoes and they were even running off to fi nd fragrances.”

“For the fi rst Princess [Wang ac-knowledges that the idea has abun-dant fl anker possibilities], I wanted something uniquely American. I didn’t want it to get confused with Anglomania or Asiamania,” said Wang. “I wanted something that stood for what I think is the culture I’ve grown up in and in which my daughters are being raised. It’s all about this blend of dreams, magical and reality, the two

mixed. In young people, it all sort of comes together.”

Princess, a sheer fruity fl oral cre-ated by Firmenich, has top notes of lady apples, water lily, golden apricot and mandarin meringue; a heart of ripe pink guava, Tahitian tiare fl ower, wild tuberose and dark chocolate, and a drydown of vanilla chiffon, pink frosting, precious amber and forbidden woods, noted Catherine Walsh, senior vice president of American fragrances for Coty Prestige. The faceted, heart-shape bottle has a gold-toned neck and crown, both studded with amethyst-

hued crystals. Both the neck and crown double as rings. The juice is tinted a pale amethyst.

Eaux de toilette in three sizes — 1 oz. for $42, 1.7 oz. for $52 and 3.4 oz. for $68 — will be joined by three ancillaries. They are Velvety Body Butter, 5 oz. for $35;

Satiny Body Lotion, 5 oz. for $32, and Foamy Body Polish, 5

oz. for $30.Princess will be available

in about 1,500 department and specialty store doors in September. Prior to that,

it will have a six-week exclusive in about 350 Nordstrom, Sephora and Macy’s East doors.

Advertising, shot by Bruce Weber, will bow in September beauty, teen and lifestyle magazines. It features Camilla Belle in a variety of princess-like poses, wearing a crown. “The idea was that you could claim any sort of princess within you — there’s rock princess, Daddy’s lit-tle princess, there’s the Princess Bride,” said Wang. “It’s about a whole new defi -nition of what princess means.”

While executives declined to com-ment on projected sales or advertising spending, industry sources estimated that Princess could do $40 million in retail sales in its fi rst year on counter, globally, the lion’s share of that fi gure expected to be in the U.S. Global ad-vertising and promotional spending is estimated at about $18 million. A men’s counterpart to Princess is ex-pected at some point, noted Wang.

— J.N.

Vera Wang Has a New Princess

Italo Zucchelli with Tom Murry of Calvin Klein Inc.

The new Weleda space.

Princess by Vera Wang.

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By Andrea Nagel

NEW YORK — Burt’s Bees is on course to increase sales by 25 percent this year due to new retail accounts, a bevy of interesting products and a new chief ex-ecutive offi cer who’s keeping true to the company’s natural positioning — and convincing retailers it’s in their best interest to take the category seriously, too.

John Replogle, who left Unilever’s skin care division earlier this year to lead Burt’s Bees, is homing in on retailers who are “com-mitted to natural care” and willing to “dedicate their resources and carve out space within their existing personal care set” for a brand that can anchor the category.

He is making headway. Burt’s Bees is set to enter ap-proximately 200 Ulta stores and 1,200 GNC stores in July and August.

The importance of health and wellness, and how these two factors are increasingly playing a prominent role in consumers’ lives, is what Replogle said will drive interest in the brand.

“More consumers are getting into this and I think natural is really going to blossom — across all categories of personal care,” he said.

Mike Indursky, Burt’s Bees chief marketing and strategic offi cer, said retailers call the company all the time asking to buy their products, but the brand is cautious about only partnering with those who are committed to the category. For now, Burt’s Bees is mostly found in prominent end caps, or “stand-alone hives” as Replogle said, in retailers such as

Walgreens and CVS, as well as gift stores, boutiques and health food stores such as Whole Foods.

Including the new distribution set for this year, Burt’s Bees will be carried in about 22,000 doors nationwide. But Replogle and Indursky are working to get

retailers interested in bringing the category in-line, along with other natu-rally positioned brands, such as Nature’s Gate and Jason, and even Aveeno in the mass world.

While consumers are defi nitely more receptive to trying brands such as Burt’s Bees these days — which avoid using synthetic foaming agents — getting the product in their hands is the best way to drive trial, even better than traditional advertising efforts, said Replogle.

“This is how they built the business,” he said, referring to Burt’s Bees founders Roxanne and Renee Quimby. “It’s all about trying them because once they smell the products and feel them they want to use them.”

Following this logic, a nationwide tour is under way that brings the company’s 16 newest items — as well as its classics — into the hands of consumers in 30 markets across the coun-try. Some of the items on the tour, which ship to stores in July and August, include Raspberry & Brazil Nut Shampoo and Conditioner ($7.99), Peach and Willow Bark Deep Pore Scrub ($7.99), Honey & Shea Butter Body Butter ($12.99) and a new face line incorporating royal jelly into formulas, called Radiance. The new line offers a Day Creme, a Night Creme and an Eye Cream, each of which will retail for $14.99.

Industry sources said the items could generate as much as $20 million in sales in their fi rst year in stores, bringing overall com-pany sales to $125 million for the year.Some of Burt’s Bees’ latest items.


The Beauty Report WWD.COM

Burt’s Bees Buzzes Into New Stores

By Kavita Daswani

LOS ANGELES — Tapping into a trend for customized compacts, popular mass brand e.l.f. is launching its own version for summer, while keeping its traditional $1 price point intact.

Elements, a new compact containing four different shades for eyes, cheeks and lips, hits stores in July, said Joey Shamah, founder and chief executive offi cer of the New York-based line.

“Customizing is in,” he said. “We’ll have core colors, but they will change every season.”

For the debut, there will be a total of 25 shades — 10 each for eyes and lips, and fi ve for cheeks. These include Periwinkle and Mocha for eyes, Earth Rose and Guava for lips and rose-hued Glow and Coy for cheeks. Each shade comes in individual boxes, and they pop out and into a small, see-through compact. The colors and the compact will re-tail for $1 each, resulting in a $5 price tag for the completed product.

Shamah is optimistic about consumer response: In the fi rst three weeks of availability, Elements sold 5,000 units on the brand’s Web site. As for store sales, Shamah said he anticipates sales between $1.5 million and $2 million by mid-2007.

“We want it to be fun for women to buy makeup, even if they are on a budget,” said Shamah, who founded e.l.f. (which stands for “Eyes. Lips. Face.”) in 2004. Scott Vincent Borba, previously of Hard Candy and other established beauty brands, is e.l.f.’s creative direc-tor and president. The line is now in about 2,500 doors nationwide, including select Target stores. Borba anticipates doubling his num-ber of U.S. doors by the end of 2006 with a signifi cant expansion into regional and national grocery stores and supermarkets.

E.l.f. also has a presence in Australia, the U.K. and parts of Asia.Elements is just one of a series of new products the brand will be

bowing for summer. A new Plumping Lip Glaze — retailing for $1 — claims to be similar in effect to pricier items on the market. Infused with menthol, the two-sided lip product offers clear and tinted options and comes in eight shades. There is also a Super Glossy Lip Shine SPF 15, fl avored with sweetener.

“We are also relaunching some of our lip categories,” said Shamah, referring to a Hypershine Gloss, which now has intensi-fi ed color and added sweetener and is available in eight shades. Gift sets, which will also be introduced in July, will be at the $5 to $8 price point, working out to $1 per item.

Staying true to its easy-access phi-losophy, the company is also launch-ing Hypershine Mini Cell Phone Lip Gloss Charm — tiny glosses designed to be affi xed to a cell phone, key ring, zipper or belt and which are priced at $5 for eight colors.

Shamah said he wants to put his low-price spin on other major trends in the beauty arena, includ-ing natural and organic products.

“We hope to launch something comparable at our price point,” he said. “And skin care is a long-term goal for us. We are gearing toward a lifestyle brand, and not just color. We want to be there for every single beauty need and are looking at other brand extensions.”

Dollar Brand Customizes LineupBy Molly Prior

NEW YORK — For a woman who claims she’s never dated a man with a “desk job,” Lauren Hutton sits comfortably behind her desk as president and chief execu-tive officer of a $20 million beauty company that expressly targets women over the age of 40.

Hutton, who introduced her namesake cosmetics collection in September 2002 at the age of 58, said the products resonate with mature women looking for solutions to new problems, such as thinning skin or fi ne lines.

Having built her business through the Home Shopping Network — where Lauren Hutton is the second-best-selling makeup line — and infomercials, the company is currently in talks with depart-ment stores and aims to have a retail presence in at least one by early 2007.

Industry sources estimate that with retail distribution the line could reach $40 million to $50 million in sales after one year.

With established beauty fi rms — includ-ing Revlon with Vital Radiance and Procter & Gamble’s Cover Girl — still fi ne-tuning how to speak to older women, Hutton said she’s been successful by being frank.

“I’ve always been very direct about my age. I’ve told the truth,” said Hutton. “The point is not to grow old, it’s to go up.”

Hutton’s honesty about her age has not always been met with admiration. In 1984, she was fi red from Revlon — after 10 years as a spokesmodel — when she turned 40. “Women over 40,” they told her, Hutton re-called, “don’t wear makeup.”

“I told them to take me back, that they needed me,” she said.

Hutton said that even at the time, she an-ticipated beauty fi rms would one day seek out mature models to front their brands and speak directly to women over 40.

“I knew it would have to come,” she said. Sure enough, Revlon introduced Vital Radiance this spring, and Cover Girl re-

hired Christie Brinkley to front Advanced Radiance Age-Defying foundation.

In a move to get ahead of the trend, Hutton returned to modeling when she was 47. But makeup artists with noble intentions

of making her look “younger” used a palette of mica and pearlized for-

mulas on her face. “I knew a lot about makeup,” said Hutton, now 62, adding that shimmer-laden shades are not suitable for ma-ture skin. So she began mixing her own formulas in her kitchen.

“After 40, we look different. Our shadows have moved, and

we need to put makeup in dif-ferent places than before,” said

Hutton. Today, her 38-item col-lection includes Custom Blend Foundation, two shades of sheer foundation in one com-pact, for $29; the skin cream Phyto Face Firm, for $30, and Face Disc, a palette of shades

for the entire face along with an instructional video for $60.

Hutton’s interest in educat-ing women about how to enhance their appearance prompted the company to delve into infomercials

in March 2005, a move that helped bolster sales 400 percent over 2004, noted Douglas Cooper, chief operating offi cer for Lauren Hutton. He added that the company also has a database of 250 million active cus-tomers from its infomercials.

Cooper acknowledged the fl urry of ac-tivity in the antiaging cosmetics segment, including L’Oréal Paris recently recruiting Jane Fonda and Diane Keaton, but he said, “What’s different about this line is that Lauren created it out of her own need.”

Virginia Lee, senior research analyst for Euromonitor, said that antiaging lines translate well via television retailing. As for the prospects at retail, she noted drugstores are a good fi t, but doubts that entries such as Vital Radiance are grow-ing the category. In fact, last week Revlon acknowledged that Vital Radiance is “a slower build” than expected, and as a re-sult the fi rm lowered its 2006 outlook.

But Cooper believes Hutton could pull off what several multibillion-dollar beauty fi rms have yet to achieve.

“Wherever Lauren’s able to tell her story, the line will be successful.”

Lauren Hutton’s Take on Aging Gracefully

Select items from Lauren Hutton’s beauty line.

E.l.f.’s new customized compacts.

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NEW YORK — Another piece of chain drugstore his-tory will soon be gone.

Walgreen Co. announced on Monday it will pur-chase the 76 stores operated by Newark, Del.-based Happy Harry’s for undisclosed terms. Happy Harry’s, founded in 1962 by its namesake, Harry Levin, was one of the last regional drugstore strongholds left in an industry that has been consolidating since the early Eighties.

“Happy Harry’s is one of the strongest regional chains in the drugstore industry with a great fol-lowing in a market where we have little presence,” said Walgreens chairman and chief executive offi cer Dave Bernauer. Walgreens, however, had already an-nounced plans to enter Delaware and the buy puts that growth into full speed.

Happy Harry’s is the nation’s 20th largest drug chain by dollar volume, with sales of $480 million. Happy Harry’s joins other region-als such as May’s, Harco and Revco as chains that have been gobbled up over the past 10 years. With today’s empha-sis on the big getting bigger, it is virtually impossible for small and midsize retailers to maintain a competitive edge in the market.

Happy Harry’s, however, did an admirable job. In its home state of Delaware, the chain controls more than 65 percent of the pharmacy market. That’s one reason Happy Harry’s was so attrac-tive to Walgreens, a company not known for being as acquisition-minded as competitors such as CVS.

“The majority of our growth will continue to be organic. During the last 10 years, we’ve opened more than 3,800 stores while acquiring and operating fewer than 30 retail drugstores,” said a spokesman.

The purchase also extends Walgreens into Maryland and for-tifi es its position in Pennsylvania and New Jersey. Walgreens gets easy access to growth in this mar-ket, thanks to the purchase of Happy Harry’s warehouse. For the short term, Walgreens will retain the fa-miliar Happy Harry’s logo — with the face of founder Harry smiling — in all stores except eight in Pennsylvania where

the Walgreens brand is already es-tablished.

Walgreens will also retain the highly regarded son of the found-er, Alan Levin, who has served as chairman and ceo. Although Levin’s first love is politics, he stepped in when needed to run

the chain upon his dad’s death. He has served as chairman of the National Association of Chain Drug Stores (and even stepped in to his spot early when another retail acquisition removed the existing chairman) and is frequently called upon as an ex-pert on drugstore retailing.

His passion for the business was evident during a new store tour several years ago when he knew

customers’ names and could recite statistics about virtually every cat-egory. And his love of Delaware came through when he bestowed visitors with University of Delaware T-shirts.

Harry Levin opened his fi rst store in 1962 where he was quickly named Happy for his warm personality. The chain has maintained that image. Under the watch of Valerie Cheyney, Happy Harry’s has become a beauty destination for its shoppers. From a vendor standpoint, Cheyney has al-ways been willing to test new concepts and provide insight into her consumer. Happy Harry’s was always a channel

for experimenting with new beauty ideas.Happy Harry’s stores average 10,000 square

feet, smaller than Walgreens’ 14,500-square-foot footprint. Happy Harry’s also pumps out a higher percentage of sales per store in prescriptions than Walgreens’ units.

With the pending sale of Happy Harry’s, there are few regional powers left in drugstore retailing. The list includes Longs, Duane Reade, Kerr, Discount Drug Mart, USA/Super D, Kinney and Drug Fair.

● ● ●The confectioner company producing Kissables, the candy brand behind a new lip gloss from Lotta Luv, was incorrectly identifi ed in the Critical Mass column on page 7, June 2. Kissables is a product of Hershey’s.

By Matthew W. Evans

NEW YORK — The men’s fragrance category at mass is about to get a classic shot in the arm thanks to new efforts from Old Spice and Brut.

Both brands are launching stand-alone scents this fall, two entries designed to bring a new generation of users to the decades-old brands.

Procter & Gamble-owned Old Spice will introduce an eau de toilette called OS Signature, a sophisticated depar-ture from the 68-year-old cologne and aftershave brand’s iconic buoy-shaped bottle.

For Brut, a 42-year-old brand, “This new fragrance is our second ever,” noted Marc Broccoli, who heads men’s cate-gory marketing for Brut’s parent, Idelle Labs Ltd., a unit of Helen of Troy.

Men’s fragrance sales in drug, grocery and mass retail stores, excluding Wal-Mart, slid 1.1 percent to $282.2 million for the year ended March 26, according to Information Resources. Much of this fi gure is made up of scents traditionally carried in the department store channel.

Both OS Signature and Brut Revolution look decidedly more upscale than the fragrances already marketed by Old Spice and Brut. Given the design aspects of the scents, their respective complexity and their higher price points, they are more akin to what one might see at the department store fragrance bar.

“OS Signature was designed to bring Old Spice fragrance to a new genera-tion of younger users,” said brand man-ager James Taylor, noting the scent tar-gets guys 18 to 34 years old. “It was created as a new [Old Spice] fl agship scent. Classic is back in vogue.”

Givaudan blended OS Signature, which features open-ing accords of lime, grapefruit, pine and aldehydic notes; a heart of ozonic marine accord, water fl owers and coriander leaf, and a base of cedarwood, patchouli musk and amber. OS Signature’s transparent, cylindrical bottle was developed by design fi rm Nicosia Creative Expresso Ltd., aka Nice, and features a silver collar, a red cap and red graphics.

OS Signature will be carried in grocery, drug and mass stores, but Taylor calls it a “masstige” scent, a positioning he said brings “class to mass.” Further blurring the mass and class lines is the fact that P&G Prestige Products Inc., a sister company of P&G Beauty’s Old Spice, fl exed its de-velopment muscle in creating OS Signature.

Meanwhile, Brut Revolution, a cologne that was mixed

by Yves Cassar of International Flavors & Fragrances, is described as a fresh, aromatic scent. It features fruity and green top notes as well as olfactory accords of aqueous wood mist, black pepper, patchouli, musk and moss. The

blue and transparent fl ask-like bottle was designed in conjunction with Coryn Dickman Design Consulting.

Brut Revolution targets men 25 to 54 years old and is intended for a core audience of “masculine, athletic [and] independent” guys ages 25 to 34, noted Broccoli. “We are looking for Brut Revolution to bring new users to the brand,” he added.

Brut Original Cologne is priced at about $8.50 for

5 oz., and its Splash On retails for around $7.50 for 7 oz. In contrast, the Brut Revolution collection is priced from $9.99 to $19.99 for two sizes of

the cologne, 1.3-oz. and 2.5-oz., and one 2.5-oz aftershave. Ancillary

items, including deodorant, are planned for next year.

Original Old Spice cologne and aftershave — both in the 4.25-oz. buoy-shaped bottle — now retail for about $10 and $7, respectively. OS Signature will come in two edt sizes: a 1-oz. for $17.99 and a 1.7-

oz. for $22.99. A 1.7-oz. aftershave will be available for $22.99.

Industry sources estimate Brut Revolution could do $20 million in fi rst-year retail sales volume, and that about $10 million would be spent to advertise and promote it.

OS Signature could generate $25 million in fi rst-year retail sales volume, according to sources, on an advertis-ing and promotional budget in excess of $12 million.

Both scents are to be rolled out to between 20,000 and 30,000 mass-market doors from August through September and will be promoted via print advertising.

While the OS Signature ad campaign is still being ham-mered out, executives expect the brand to reach “mil-lions” of consumers via its promotional campaign.

The Brut effort will include major men’s lifestyle, fash-ion and sports magazines. Brut Revolution will be fea-tured in TV ads on ESPN2, Broccoli noted, and two mil-lion scented impressions will further promote the scent.

Old Spice’s OS Signature and Brut Revolution.


The Beauty Report

Walgreens Adds Happy Harry’s to Fold

Old Spice, Brut Look to Boost Mass ScentsCASH RICH: Jurlique has received a cash infusion from San Francisco-based JH Partners, a private equity fi rm. Details were not disclosed. The two fi rms also announced that Eli Halliwell has been named president and chief executive offi cer of Jurlique. Halliwell is formerly of Bumble and bumble, where he served as general manager.

BARNEYS ENERGIZES: Fashionistas will be pleased to know they can get charged up at the newly opened Chantecaille Energy Spa located on the fourth fl oor of Barneys New York on Madison Avenue and 60th Street. Energy spa treatments, such as an energy lift facial, a fl ower facial, lymphatic drainage and a toning treatment for the body range from $95 to $250.

CELEBRATING SCENT: Firmenich is feting the fi fth birthday of its Osmoz Web site by giving its 240,000 members a chance to win a made-to-measure fragrance. Starting in October, visitors to the fragrance supplier’s site will be asked to share their thoughts on scents as part of the competition, which is called Extrait de Parfum (fragrance extract, in English). The winner will have a bespoke scent concocted by a Firmenich perfumer. “Osmoz gives us a rich dialogue with consumers and provides us with a new marketing tool,” said Armand de Villoutreys, managing director of Firmenich France and vice president of fi ne fragrances worldwide. Osmoz was founded in 2001 to allow Firmenich to better understand consumers. In 2005, the company carried out more than 12,000 hours of interviews through Osmoz.

BEAUTY AND BRAINS: Oppenheimer & Co. will hold its third annual “Beauty, Lifestyle & Leisure” conference Sept. 12 at the New York Marriott Financial Center. A handful of beauty fi rms are slated to present to investors, including Regis Corp., Nu Skin and Inter Parfums.

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The HBA Report WWD.COM

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NEW YORK — For hairstylist Marc Anthony beauty is in the details, which is why the Toronto-based styler will attempt to fend off the current onslaught of competition in mass hair care with an updated of-fering and two new collections slated to bow later this year.

The company will in-troduce both efforts through a $10 million print advertising cam-paign that takes turns spotlighting each of Marc Anthony True Professional’s core collections, and re-inforces the brand’s salon heritage with a thumbnail photo of Anthony.

Less than two years after repackaging his namesake hair care brand, Anthony has ditched the line’s sleek, clear bottles in favor of a rainbow of opaque, rectangular ones. Concerned with making the solution-based products easy for consumers to spot and shop, each collection is color coded with names in bold type running vertically down the bottle. The company will begin to phase in new packaging this July, and reintroduce the re-dressed collections with a series of print ads breaking in July beauty books.

“We are an $8 brand,” said Brad Kirk, who joined Marc Anthony Cosmetics last fall as chief operating offi cer and executive vice president. “We have to let people know there’s a superiority here,” he added, refer-ring to the line’s premium price point and positioning.

Anthony, who looks to his salon for in-spiration, plans to round out his offering — which currently includes Instantly Thick, Strictly Curls and Simply Straight — with the introduction of two new collections, Ultimate Moisture and Moisture Gloss.

The fi ve-item Ultimate Moisture collection is designed to rehydrate hair with shea butter and natural soy. “I didn’t want to just mask the problem of dry hair,” said Anthony. “I want-ed to create something that would correct it.” He added that the products regenerate the scalp, cleanse hair follicles and infuse the hair’s cortex with mois-ture. The items are Replenishing Shampoo, Daily Deep Conditioner, 30 Second Conditioning

Treatment, Daily Leave In Conditioner and Replenishing Finishing Cream, which has become one of Anthony’s favorite products.

Ultimate Moisture, housed in blue bottles, will launch in select retailers this

summer, including CVS, Rite Aid, HEB and Ulta, with

plans to roll out to wider distribution next year.

This summer, the company also will introduce Moisture Gloss to a handful of retailers — namely Ulta and HEB — with a wider launch planned for next year. Leveraging an

existing product, called Moisture Gloss Daily

Drops, the company cre-ated a four-item collection

designed to impart weightless shine into the hair. The collec-

tion, dressed in pink bottles, compris-es Brilliant Shine Shampoo, Brilliant Shine Conditioner, Diamond Shine Finishing Cream infused with mica and Moisture Gloss Daily Drops, which is now billed as an antifrizz and shine serum.

While executives would not comment on sales, industry sources expect Ultimate Moisture and Moisture Gloss to generate $10 million to $12 million in sales through 2007.

Anthony is also hard at work strength-ening the brand’s ties to Hollywood. Over the last year, he has stationed himself back-stage at the 2006 Alma Awards, where he met the singer Marc Anthony, set up a pri-vate lounge at the Oscars and attended the Daytime Emmy Awards.

“We are a true salon heritage brand backed by an active celebrity styl-

ist,” said Kirk, noting the differences between Marc Anthony True Professional and the influx of other mass market brands billed

as professional. The brand, which is current-ly sold in 23,000 U.S. doors, will face compe-tition from Unilever’s Sunsilk, which makes its U.S. debut this month, and the upcom-ing revamp of Clairol’s Herbal Essences and Vive by L’Oréal Paris. Anthony acknowledged it will be an aggressive year in the space, but re-marked: “One constant has always been that shelf space is tight.”

— Molly Prior

By Andrea Nagel

NEW YORK — What is arguably one of the best eye creams is without a doubt the most expensive: Sensai Premier Eye Cream retails for $320 per 0.5-oz. jar. Price points, however, don’t usually faze the loyal users of Kanebo’s luxury top-line brand, or the women who shop at Bergdorf Goodman. (Bergdorf ’s is exclusively selling the pricy eye cream until it launches nationwide to 26 other doors, including select Saks Fifth Avenue, Cosbar and Barneys New York stores.)

Julie Fritzky, training and event director at Kanebo Cosmetics USA, said, “The Bergdorf [Goodman] customer is the Kanebo cus-tomer.”

The eye cream, which Kanebo executives said will likely gener-ate $1 million in fi rst-year sales, rounds out existing items in the Sensai Premier line, which launched in April 2005. Currently, there is a Lotion ($300 for 5.1 oz.), an Emulsion ($380 for 4.25 oz.) and a Cream ($650 for 1.4 oz.), which are designed to offer “breakthrough DNA repair support technologies,” according to a product brochure. Each item also uses an exclusive silk extract (koishimaru) and natural saffron oil, and combines a marine polysaccharide and beta carotene to stimulate hyaluronic acid, which helps retain moisture in the skin. In addition to

utilizing these ingredients, the eye cream aims to stimulate the pro-duction of collagen by using Super Fibro Activator, a stable vitamin

C derivative, and looks to help stimulate DNA repair functions by using a seaweed extract, Fritzky added.

Kanebo is not limited to skin care. Kanebo International, a Tokyo-based company, also makes color cosmetics, including eye shadows, mascara and a lipstick line infused with 24-karat gold. An antiaging foundation range under the Sensai Cellular Performance brand — the backbone of Kanebo’s product range and one that’s more competitively priced — launches in August and will retail for $85 for Cream Foundation and $90 for Powder Foundation. Each uses fi ve main ingredients, including an apricot essence complex to stimulate microcirculation, kakyoku extract to help uneven skin tone and OH Scavenger, a synthetic antioxidant created by Kanebo to fi ght the signs of aging. Each comes in eight shades.

Kanebo executives estimate first-year sales for the Sensai Cellular Performance Foundation will exceed $1 million. Kanebo

has experienced double-digit sales growth for the previous three years, executives said, adding that current sales goals for 2007 are $10 million

annually in the U.S.

NEW YORK — One of the salon industry’s most premiere hair care lines — Barex Italiana — has undergone a facelift to up its appeal with stylists and consumers. Gone is medicinal-type packaging; in are color-coded bands defining hair types its five lines address: fine, frizzy, dry, normal and color-treated hair. A styling line rounds out the offerings, which grew from 20 items to 24 during the revamp.

Guita Dovas, founder of New York-based OloffBeauty, maker and marketer of Barex Italiana, Aetó Botanical collection and JOC color, said she simply wanted to keep the brand’s DNA — weightless shine — and make it easier to understand.

“The challenge was to get products into the hands of stylists. That is what I strongly believe we have achieved with this line by for-mulating products that address different hair issues and by making it easy to identify which products are best for a certain hair type,” Dovas said. All of OloffBeauty’s products are made in the company’s manufacturing plant in Bologna, Italy.

Some of the new items include Colour Confi dante, a leave-in conditioner-mist designed to give body and shine to colored or bleached hair. Then there’s Delicato Shampoo, which falls within the fi ne hair series, and uses cotton seed and sweet almond oil to plump up hair. Shampoo in the dry hair range now contains rice oil and castor oil to moisturize hair. Also, eight styling items are available, including Cristalli Liquidi, a serum to provide color pro-tection, volume and shine, which can be used as a base with other gels or creams.

Despite upgrades, prices did not increase and aver-age $24.

Barex is sold in approxi-mately 900 “A” salons — up-scale salons with 10 or more chairs — as well as a few “B” salons, across the U.S., 600 of which take in the full line. “These salons are in need of ex-clusive products,” said Dovas, explaining that many premiere lines are diverted and hence avail-able in many outlets, even drugstores. Barex items, which are sold directly to salons, are also begin-ning to appear in select specialty stores, such as Planet Blue, Clyde’s Chemist and Cosbar.

The new Barex items entered salons six weeks ago and initial feedback has been positive.

“We are hearing that the line is ‘so easy to understand,’” Dovas said. By keeping her line tight, she believes stylists are not intimi-dated to try them.

“One of the fi rst questions they ask is, ‘You don’t have 60 stock-keeping units, do you?’” she recalled.

Sales of some items are increasing due to some tweaks, such as Glossing Pomade, which now rolls on instead of being packaged in a tub.

Dovas said OloffBeauty could end 2006 with sales of $5 million, up from $3 million last year. By year-end 2007, Dovas predicted, sales should double, due in part to a growing sales force and cus-tomer base.

“We are opening about four or fi ve new salons every 10 days,” Dovas said. But increasing customers’ bottom line is just as impor-tant to her.

“Retail sales are important to salons. It is diffi cult for stylists to sell products, but with the new packaging, the customer can [go to the salon’s retail area] and choose it herself.”

— A.N.

Barex: Making Selection EasyMarc Anthony’s Battle Plan

Kanebo’s Luxury Eye Cream Breaks Through Price Ceiling

Sensai Premier Eye Cream sells for $320 per 0.5-oz. jar.

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Marc Anthony

Items from Ultimate Moisture.

Barex bottles are now color-banded.

to design, produce and sell the Lagerfeld Collection designer line (for-merly called Lagerfeld Gallery).

The abrupt closure of the Karl Lagerfeld line, which was headquar-tered at 601 West 26th Street, will result in the elimination of 25 jobs, including that of Ann Acierno, president of new business development at Hilfi ger, who oversaw the Lagerfeld business. Melanie Ward, who served as creative director of the Lagerfeld contemporary line, was a con-sultant, and her role may be ending along with the collection.

All global licensing will continue to be managed from New York by Hilfi ger’s established licensing organization. Lagerfeld will remain a wholly owned subsidiary of Hilfi ger.

The designer’s arrival in New York was heralded by a major fall runway show in February at the close of fashion week. Karl Lagerfeld offered a limited-edition capsule group this spring exclusively to Neiman Marcus and Bergdorf Goodman, con-sisting of about 28 women’s and 23 men’s styles, with denim as a key component. The Neiman’s and Bergdorf ’s line was created to build excitement for the larger fall launch.

Hilfi ger and Lagerfeld originally had high hopes for the Karl Lagerfeld line, which was expected to be a big-vol-ume business. “I’m very much into large distribution,” said Lagerfeld last year. “With haute couture, I proved that I can design the most expensive things, and with H&M, I can do the less expensive things. This will be in the middle of all that.”

Fred Gehring, chief executive offi cer of Hilfi ger, couldn’t be reached for comment Thursday, but said in a statement: “We believe strongly in the enormous potential of the Karl Lagerfeld brand. Karl is one of the great design icons of our time. However, the management of dual headquarters in both Paris and New York is complex and specifi cally at odds with the company’s core mission following the acquisition by Apax Partners to focus resources on our core activity of further de-veloping the Tommy Hilfi ger brand.”

Further, he added: “We believe that Paris as the sole cre-ative and organizational base will provide the focus necessary to further develop Lagerfeld Collection, while allowing the company to continue to assess future growth opportunities.”

Lagerfeld also couldn’t be reached for comment, but said in a statement: “I am pleased to be focusing all my creative energies at this time on the global Lagerfeld Collection designer line from Paris, which has always been the

heart and soul of my atelier. While Tommy Hilfi ger Corp. fo-cuses more intensely on its name brand, the power and ener-gy that I have experienced with our recent presence in New York will continue to drive and grow the spirit of the Lagerfeld Collection around the world.”

Indeed, the designer has been much more visible in New York during the last year. He presented the accessories design-er of the year award with Lindsay Lohan at the CFDA Awards Monday night, and last month fl ew into town for a Chanel cruise collection runway show — taking over Grand Central Terminal for the event.

Hilfi ger acquired Lagerfeld’s trademarks, consisting of Karl Lagerfeld, Lagerfeld Gallery (now Lagerfeld Collection), KL and Lagerfeld, for an estimated $30 million in January 2005. In addition, the agreement included two Lagerfeld Gallery stores in Paris and Monaco, as well as Lagerfeld’s fragrance business, which is licensed to Unilever Ltd.

At the time he sold his business to Hilfi ger, Lagerfeld said he was enjoying establishing a New York presence.

“My idea was always New York, Paris and Rome,” said Lagerfeld in 2005, describing his design roles for Chanel in Paris, Fendi in Rome and the new, less expensive Karl Lagerfeld line, which was geared to contemporary departments at high-end department stores.

“There’s some excitement in the air in New York. You have to be here. I hated it in the Eighties. Suddenly, I think you should have an American base,” said the designer, who recently bought an apartment in Gramercy Park.

Lagerfeld signed a fi ve-year contract with an automatic three-year renewal with Hilfi ger, under which Lagerfeld would con-tinue to design and provide creative direction for his brands.

“I’m not a businessman,” said the German designer at the time, explaining that he would rely on Hilfi ger’s fi rm to run the business end and set the direction in terms of distribution, pro-duction, marketing and licensing.

The changes at the Lagerfeld business come shortly after Gehring detailed major restructuring at the Hilfi ger brand. Some 230 jobs were eliminated at the company’s New York and New Jersey offi ces in an effort to restore the position of the Hilfi ger brand in the U.S. Meanwhile, Hilfi ger’s headquarters are being moved to Amsterdam, where Gehring is based, from New York.

TOKYO — Louis Vuitton held its fi rst-ever fashion show here Wednesday for 500 guests, building a dome for one night in the suburbs to display its fall collection.

For the event, a huge dome was built in Yumenoshima, which means the “Dream Island” in English, reclaimed land in the suburbs of Tokyo. The guests were taken from the heart of Tokyo by bus to the venue for the 9 p.m. show, walking across a green fi eld to the venue.

“This is a great event,” said Bernard Arnault, chairman of Vuitton parent LVMH Moët Hennessy Louis Vuitton. “Marc Jacobs is here, and we showed our products to the people in Japan and Asia, the very impor-tant market for the brand.”

Yves Carcelle, president of Vuitton, added, “We picked this location because here we are able to show Louis Vuitton perfectly. This is a symbolic event. The show is the same but the setting was changed. And the whole event was held at this unique location of the green fi eld and the futuristic hall.”

The show included 50 styles. Afterward, more than 1,000 people were invited to a party, which started in a Seventies-style disco set up behind the runway.

At 11:30, the music stopped and, to yells and applause, Grace Jones appeared on stage. Marc Jacobs left the VIP room to dance with Jones on the stage as guests crowded around.

— Koji Hirano

Continued from page one

15

Hilfi ger Dropping Karl Lagerfeld Line

Louis Vuitton’s Tokyo Dome

NEW YORK — Miuccia Prada is once more in an experimental mood.

The designer will launch her proj-ect “Improbable Classics n.1” in Basel, Switzerland, next week in time for the 37th edition of Art Basel, which takes place June 14 to 18.

For the fi rst time, Prada will set up a temporary store, designed together with architects Herzog & De Meuron, who are based in Basel. “There will be some classic Prada pieces that are not necessarily com-mercial, hence the name of the project, and some items designed for this store expressly,” said a Prada spokesman.

The store, which covers 2,160 square feet and is located next to the Herzog & De Meuron studio overlooking the Rhine river, will be open from Saturday to June 20.

Prada and her husband, Patrizio Bertelli, are expected to attend the offi cial opening Monday evening.

“This store could be replicated in other cities,” said the spokesman.The store has been kept simple and bare. The merchandise will be

displayed on tables or in boxes, and the shopping experienced resembles a cross between a market and a store.

The product for sale in the store will be exclusive, and each piece will be labeled Basel 2006. Some of the products on sale are prototypes for designs that could be produced for other Prada stores at a later date.

— Marc Karimzadeh and Luisa Zargani, Milan

Prada Goes to Basel

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The temporary Prada store in Basel, Switzerland, will sell exclusive merchandise such as this.

A look from Lagerfeld’s fall runway show.

WWD.COMWWD, FRIDAY, JUNE 9, 2006

Karl Lagerfeld

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Marc Jacobs A performer at the event.

WWD.COM16 WWD, FRIDAY, JUNE 9, 2006

Media/Advertising

DON’T ASK, DON’T TELL: Brad Pitt may be reconciled to seeing his newborn daughter’s face on every newsstand in America thanks to People magazine, but, for heaven’s sake, don’t ask him whether he cheated on ex-wife Jennifer Aniston with

current lover Angelina Jolie. According to two well-placed sources, Pitt’s publicist, Cindy Guagenti, was recently telling celebrity wranglers they would have to promise not to ask about certain areas of his personal life if they wished to secure him for their magazine covers.

That raises the question of whether Esquire, which has booked the star for its October cover, agreed to any such restrictions. An Esquire spokesman declined to address the question directly, joking, “The only detail I can confi rm is that he is not our mysterious “Sexiest Woman Alive.’” (He did confi rm that it would be Pitt’s fi rst appearance on Esquire’s cover.)

Guagenti, meanwhile, said it was “not true” she had been setting limits on interview questions. But asked whether that meant all topics were up for discussion, she hedged. “We chose that magazine for a specifi c reason, which I can’t really talk about, because it just fi t with what our line of thinking is,” she said. Could it be that Esquire agreed to let Pitt get away with a fi rst-person, “as told to” piece, à la the June issue’s cover story on Tom Hanks? Guagenti declined to elaborate.

While Pitt has a well-documented animosity toward the paparazzi press, Guagenti is not known as particularly aggressive, as Hollywood publicists go. That said, an experienced celebrity wrangler said it was distressingly common for publicists to demand ground rules, even in cases, such as Pitt’s, where the topic being put off limits is the only one readers are likely to care about. “They always try to get away with as much as they can get away with,” said the wrangler. “It’s like, ‘Media train your damn client so they don’t have to pull this stuff.’” — Jeff Bercovici

DORN AGAIN: If you didn’t get enough of Backpacker editor in chief Jonathan Dorn during his outré acceptance speech at the ASME awards last month — after winning the Ellie for best magazine section, Dorn bussed Newsweek editor Mark Whitaker, then celebrated the physical attributes of his fellow Rodale staffer Dave Zinczenko — log on to Backpacker.com beginning June 25. Dorn will be audio-blogging as he attempts the Primal Quest, a 500-mile adventure race in the Utah desert. (This is apparently the sort of thing Backpacker editors do for fun.) “I’m packing a satellite phone to call in daily reports on our suffering,” he said.

As for his life following the ASME win, Dorn said he celebrated at “a local no-name pub” until sunrise after the ceremony, “then pretty much had to steam back to Pennsylvania [Emmaus, where the magazine is based] to close an issue. Since then, it’s been back to business — with an occasional glance over the shoulder at the Ellie.”

Good thing that doesn’t fi t in his backpack. — Sara James

AU NATUREL: Skin is in. At least, so hopes Thomas Lenthal, the French artistic director who consults on Yves Saint Laurent and serves as creative director of Paris’ Numero fashion monthly. To test his premise, Lenthal, who is married to Dior jewelry designer Victoire de Castellane, plans to launch Paradis, an upscale general interest men’s magazine

peppered with female nudes. Known for his snappy dressing and witty repartee, Lenthal said the magazine, with an initial print run of 40,000 and advertisers like Cartier and Dior, was loosely modeled on the vibe of the iconic French gentleman’s magazine Lui. Ad pages are 7,500 euros, or $9,600. “I loved the feeling of Lui in the 1970s,” said Lenthal, who is self-fi nancing the project. “There was this engaging mix of subjects,

between journalism and photography.” Following that example, the 272-page

debut issue of Paradis includes such eye candy as a disrobed Emmanuelle Seigner, the French actress who is married to Roman Polanski, and a nude series in Tony Duquette’s opulent Beverly Hills estate. But it also contains lengthy interviews with artist Jeff Koons — who reveals a handful of never-seen-before works in progress; Sotheby’s auctioneer Oliver Barker on the state of the contemporary art market, and Swiss architects Jacques Herzog and Pierre de Meuron on the Olympic stadium they are building in Beijing. Fashion isn’t ignored either. YSL designer Stefano Pilati shows off his newly decorated Paris bachelor pad — accompanied by pictures of Pilati in fi ve different outfi ts — and there is a feature on complicated Swiss watches. Lenthal plans an offi cial launch for the magazine, which will be published in both French and English versions, later this month during Paris’s men’s fashion week. The cover price is 10 euros. Lenthal said a second issue would appear in November. — Robert Murphy

MEMO PAD

Out of the Frying Pan, Into the FireNEW YORK — It started as a magazine assignment: Bill Buford, then-fiction editor of The New Yorker, was tasked to profile celebrity chef Mario Batali. An amateur cook with aspirations, Buford used the story to wrangle an apprenticeship in the kitchen at Babbo. Before long, he was ducking out of the office to take workshops in sausage making and traveling across Italy to ferret out ancient pasta recipes. Buford’s experiences, recounted in several New Yorker articles, are the subject of a new book, “Heat,” out now from Alfred A. Knopf. He took time out from his book tour to chat with WWD about the importance of simplicity, the outsized charm of Batali and whether England has a shot at the World Cup. — Jeff Bercovici

WWD: You were The New Yorker’s fi c-tion editor, and then you left, more or less, to train as a chef. What’s your status at the magazine now?

Bill Buford: I’m there now full time as a writer. I made the shift from management to labor.

WWD: What compelled you to give up one of the most envied jobs in publishing to become, in your own words, a “kitchen bitch”?

B.B.: When I fi rst went to work for Mario Batali, I said, “Mario, I’m a little uncomfortable. It’s the fi rst time I’ve not been behind an editorial desk in more than 20 years.” And he said, “It’s about f---ing time.” So that was part of it. It was about f---ing time.

WWD: An awful lot of writers seem to be talented cooks, or at least enthusiastic ones. What’s the connection be-tween the two pursuits?

B.B.: One of the things I learned is what a cook goes through to become an accomplished chef is not that dif-ferent from what a writer or artist goes through. There’s a lot of time in the wilderness. These cooks will go

through training in which they’re not getting their due for 10 or 12 years. There’s a very similar kind of commit-ment to learning a craft.

WWD: Of all the celebrity chefs out there, Mario Batali seems to have established one of the more intense cults of personality. What do you think it is about him

people fi nd so magnetic?

B.B.: It’s about 5,500 things. He’s unusual among chefs in that he’s probably the smartest one out there. He’s got an unusual combination of being the regular guy, the class clown and the smartest guy in the neighborhood, with an encyclopedic knowledge of food. And that’s just too winning to be true.

WWD: Your portrait of him is admiring on the whole, but also fi lled with unfl attering details about his behavior and the way he runs his restaurant. For instance, you describe him digging scraps out of the garbage to serve to customers. What was his reaction to all this?

B.B.: Mario said two things. When he fi nished reading the original New Yorker piece, he said, “It’s like stand-ing naked in front of the mirror for 24 hours.” When he fi nished the book, he said, “I’m suitably weirded out. And, also, I can’t believe the access we gave you.”

WWD: Your friendship with Mario began when you in-vited him to a dinner party at your apartment, nearly giving your wife a panic attack. Now that you’ve learned the secrets of legendary chefs, what meal would you make to impress in such a situation?

B.B.: I wouldn’t try to impress anybody. I would do something much simpler than the meal I made for Mario, which involved pastries and wild mushrooms and reduced sauces. One of the things I’ve learned was the virtue of simplicity. I would cook with the seasons and just do something much simpler. Spring peas are at the market at the moment, and so are eggs. Eggs have much more of a season than most people realize. So I might make some homemade pasta with peas and guanciale and maybe a simple piece of roasted meat. Or maybe pork roast covered with fennel pollen and spring vegetables.

WWD: Besides food and writing, you’re also a passionate fan of British soccer. How do you like England’s chances?

B.B.: It would take a miracle. But if they can get past the fi rst round, they have as good a chance as just about anybody else, I guess.

Brad Pitt PITT

PHO

TO B

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IMAG

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Bill Buford

By Samantha Conti

LONDON — Compagnie Financière Richemont, the Swiss luxu-ry goods group and parent of Cartier and Dunhill, continues to ride the luxury boom.

Although profi ts in the year ended March 31 slipped 9 per-cent to 1.1 billion euros, or $1.34 billion, from 1.21 billion euros, or $1.52 billion, due to nonrecurring gains, sales broke a com-pany record and underlying profi ts growth remained strong.

Sales rose 17.4 percent last year to 4.31 billion euros, or $5.25 billion, from 3.67 billion euros, or $4.62 billion, driven by strong double-digit gains in all regions, and in every product category except for leather goods.

“This has been an excellent year for Richemont, and all of our executives and employees are to be commended on their contribution,” said Johann Rupert, Richemont’s executive chairman, in a statement Thursday.

Indeed, Richemont’s bottom line suffered only from tough comparisons with last year. The company had reaped major gains from its stake in British American Tobacco when that company restructured its U.S. operations in the previous fi scal year.

Stripping out last year’s gains from BAT, Richemont’s profi t would have increased 36 percent to 1.13 billion euros, or $1.38 billion, in the year. All currency conver-sions are made at average exchange rates for the respective periods.

“Analysts tend to view Richemont as a pure luxury group, so we automatically strip out any gains from BAT,” said Antoine Belge, analyst at HSBC in Paris. “We focus more on operating profi t, and that was an excellent fi gure.”

Operating profi ts for the year rose 32 per-cent to 741 million euros, or $902.8 million, from 561 million euros, or $706.5 million, thanks in part to gains from the disposal of London-based men’s wear fi rm Hackett, and on the sale and leaseback of retail property.

Belge said Richemont could have nudged op-erating profi ts even higher, had it not been for the fi rm’s increased investment in communication, which rose 21 percent, and in selling and distribution, which rose 12 percent.

“They really decided to push the investments in the second half, and they’ve got a point. In emerging markets like China, you have to be in there ahead of the competition,” said the analyst.

Rupert added the new year has kicked off in style: Sales in April and May increased 18 percent, with strong demand in all regions. However, the perennially cautious South African executive was reluctant to give any upbeat guidance for the current fi scal year.

He said Richemont would be “monitoring closely” the recent strengthening of the euro against the dollar, and added it was im-possible to say how the global economy may develop during the re-mainder of the current year.

His colleagues, however, were more optimistic.In a conference call Thursday, Alan Grieve, head of corporate

communications and executive director, said Richemont was “very well positioned for the future,” thanks to the growing market for luxury goods and to emerging markets.

“And we’ve had a very good start to the current year,” he added.

But Belge of HSBC said 18 percent growth won’t be sustainable over the year and he’s expecting sales growth to settle down to 12 to 13 percent.

“Eighteen percent is not a ‘luxury goods level.’ But Richemont has nothing to worry about — they’re not selling boxes of soap,” said Belge.

For the fi rst time, the group has reported its results in compliance with the International Financial Reporting Standards, and compara-tive fi gures from the 2004-05 fi scal year have been restated.

Sales at Richemont’s jewelry houses, which include Cartier and Van Cleef & Arpels, rose 15 percent in the period, powered chiefl y by new launches at Cartier. During the period, Cartier’s 13 Rue de la Paix fl agship in Paris reopened and a fl agship in Aoyama, Tokyo, made its debut.

Specialist watchmakers posted a sales increase of 22 percent, with the highest rate of growth in the Americas.

The launch of new models, including Piaget’s Possession col-lection, Baume & Mercier’s Diamant for women and Jaeger Le Coultre’s latest Minute Repeater also drove sales.

Mont Blanc, which Richemont chief executive Norbert Platt re-ferred to as a “star brand,” saw sales rise 17 percent, refl ecting the company’s growth as a retailer, with one-third of sales now being made through directly owned stores.

At the company’s “other businesses” division, which includes Chloé, Shanghai Tang and gunmaker Purdey, sales rose 32 percent. Excluding the impact of the Hackett sale, they would have risen 66 percent.

Sales at Chloé more than doubled in the year, driven in particu-lar by demand for the Paddington bag and by the secondary See by Chloé line, as well as by wholesale distribution and new store open-ings. In the conference call, Platt said Chloé was growing “beyond the company’s expectations,” and that Tang was “a very nice brand, small and profi table.”

He said the company intended to hang on to Tang, and is inter-

ested to see if it can grow globally, beyond China.Platt added Richemont was not currently considering

any more disposals — or acquisitions. “We don’t see any major opportunities out there. We have great brands with great potential and we’ll be focusing on those.”

Richemont is still working on turning around Lancel and Dunhill, the two weakest brands in its stable. Lancel was able to halve its operating losses in the fi scal year to 8 million euros, or $9.7 million. Lancel achieved double-digit sales growth in France during the year and is growing markets including Hong Kong and China.

Sales at Dunhill rose 8 percent, with strong gains in the Asia-Pacifi c region offsetting fl at sales in Europe and Japan. Operating losses increased to 30 million euros, or $36.5 million, linked partly to management changes.

“Dunhill is a long-term issue, and we now have younger people in place whom we hope will be running it for the next 10 years. The brand is growing in China and the Far East — but the rest will take time,” Platt admitted.

Rupert added in the statement that Dunhill was solv-ing its supply chain and sourcing issues by taking direct control over distribution. It has bought 30 stores back from franchise partners in key locations including Beijing and

Shanghai. Dunhill also will open a series of shop-in-shops in Europe, and extend

the reach of its e-commerce platform.By region, European markets gen-

erated 42 percent of Richemont’s sales in the fiscal year, and top

performers were France, Italy and Switzerland. Sales in Europe increased 15 percent, although sales in the U.K.

were fl at.In Japan, sales increased 13 percent, while

in Asia-Pacifi c, they increased 19 percent, thanks to a strong demand for watches. Sales in China

reached historic rates, the company said, generating 13 percent of all Asia-Pacifi c sales. Sales in the Americas refl ected the strength of consum-

er confi dence in the U.S. market, Richemont said, with most brands reporting double-digit growth.


Richemont Sets Sales Record

A design from Cartier’s Caresse d’Orchidées collection.

WWD.COMWWD, FRIDAY, JUNE 9, 200618

By Kristi Ellis

WASHINGTON — The Senate on Thursday confirmed Presi-dent Bush’s nomination of Susan Schwab to be U.S. Trade Representative as the AFL-CIO and two congressmen filed an unfair trade practices case against China with her office.

The complaint alleges that workers’ rights abuses in China have worsened in the two years since the union fi led a similar petition that the Bush adminis-tration rejected. Among the evidence are interviews with Chinese workers in various industries, including the garment sector.

Schwab, who had been deputy USTR, was approved by unan-imous consent to replace Rob Portman, whom Bush has tapped to be director of the Offi ce of Management and Budget. Schwab likely will face mounting Congressional pressure over China’s trade practices.

“Over the past two years, the situation has grown much worse for American and Chinese workers,” Richard Trumka, secretary treasurer of the AFL-CIO, said at a news conference. “Since the rejection of the 2004 petition, the annual trade defi -cit with China exploded from $124 billion to $202 billion and it continues to grow. At the same time, international agencies and the U.S. State Department have documented the continuing de-terioration of working conditions.”

Trumka said the enforcement of wage, overtime, safety and health, as well as environmental laws, is “nonexistent and dem-onstrations are brutally suppressed.”

The labor federation, along with Reps. Benjamin Cardin (D., Md.) and Christopher Smith (R., N.J.), fi led the petition under the Trade Act of 1974, alleging that China represses workers’ rights, which in turn drives down wages by 47.4 percent to 85.6 percent and lowers the price of exports by 10.6 percent to 43.6 percent. These factors were said to have contributed to the loss of an estimated 930,000 U.S. manufacturing jobs and 1.2 million total U.S. jobs.

Cardin said the Bush administration “missed an opportuni-ty” two years ago when it rejected the AFL-CIO’s fi rst petition.

“The administration said, ‘We will deal with the issue and we will take appropriate action to make sure that China ad-heres to international labor standards,’” Cardin said. “It’s two years later and the numbers are in…and we’ve made no prog-ress. In fact, we’ve moved in the wrong direction and the situ-ation today is much more critical for workers in China and for the workers in the United States.”

The new petition calls on the administration to impose trade sanctions on China ranging from 10 to 77 percent on exports to offset price suppression that the administration could decrease in increments if China meets certain labor standard benchmarks.

Responding to the petition, a USTR spokesman said: “In our top-to-bottom review on the U.S.-China trade policy, the ad-ministration believes a strong and growing trade relationship driven by mutual interests is the best way to encourage eco-nomic, social and political reform in China. We’ve continued our engagement with China on labor issues and we continue to seek additional cooperative mechanisms.”

The spokesman pointed to initiatives Labor Secretary Elaine Chao discussed with Chinese offi cials in 2004 after the admin-istration rejected the fi rst petition and cited four letters of un-derstanding she obtained from her Chinese counterpart at that time to improve labor and workers’ rights. He said the U.S. has provided training in dispute resolution in labor relations, in addition to training for labor inspectors.

The Bush administration will have 45 days to determine whether to accept the AFL-CIO petition and launch an inves-tigation. If the administration takes the case, it will have up to one year to investigate and decide on an action.

As for whether the AFL-CIO’s chances are better this time around for gaining approval from the administration on the pe-tition, Trumka said: “If you are a betting man and you looked at the odds, it’s probably not a good bet.”

Schwab Confi rmed as USTR, AFL-CIO Files Case on China

Susan Schwab

Obituary

NEW YORK — Max Samuel “Tom” Grumbacher, former chairman of The Bon-Ton Stores Inc., the second-largest regional department store in the U.S., died Wednesday at home in Philadelphia after a long illness. He was 93.

Drawn into the family business in 1931 by a crisis — his father’s health was deteriorat-ing and the store, like others during the Great Depression, was struggling — Grumbacher de-cided to forgo a college education. He quickly rose to the position of president, which he held for 28 years, until he turned over man-agement of the chain’s day-to-day operations to his son, M. Thomas “Tim” Grumbacher in 1967.

The senior Grumbacher remained active in the company, focusing on real estate and ex-pansion strategies. He stepped down as chair-man in 1987, but kept a seat on Bon-Ton’s board until he retired in 1996, when he was voted di-rector emeritus.

Grumbacher is credited with steering the company’s growth through expansion and ac-

quisitions and beginning the transformation of his family’s business from a single store in York, Pa., to a chain of 279 stores in 23 states. In March, Bon-Ton completed the $1.05 bil-lion cash purchase of Saks Inc.’s Northern Department Store Group, which has a 142-store base in 12 states.

Committed to community leadership, Grum-bacher was active in the York Chamber of Com merce, York Council of Jewish Charities, United Fund of York City and the York Family Service Bureau.

A longtime philanthropist through his M. S. Grumbacher Foundation, he supported medi-cal research, education and cultural and civic organizations. The foundation in 1999 endowed a scholarship in his name for business students at Penn State.

Grumbacher is survived by his son, Tim, two daughters, Susan Gregory and Mary Jo Grum-bacher, fi ve grandchildren and six great-grand-children.

Funeral services are scheduled for noon on Monday at Temple Beth Israel in York.

M.S. Grumbacher, Former Bon-Ton Chairman

NEW YORK — Thursday’s trading on Wall Street was a roller coaster as major indi-ces plunged in the morning on speculation that possible inter-est rate hikes would curb cor-porate profits. But the market rallied in the afternoon as in-vestors snatched up bargains across several sectors, includ-ing retail.

As a result, the Dow Jones Industrial Average closed the day up 0.07 percent to 10,938.82 after shedding more than 170 points earlier in the day. Through Wednesday, the index had lost more than 300 points. The S&P 500 gained 0.14 per-cent to 1,257.93 while the S&P Retail Index rose 0.7 percent to 453.60.

The S&P Retail Index is off about 4.6 percent since the be-ginning of May.

Dana Telsey, analyst and founder of the Telsey Group, said retail stocks have been

pressured by a “seasonal, sec-ond-quarter depression.” But the sector also is feeling pres-sure from consumer fears of infl ation, rising interest rates and higher energy prices. “The macro factors this year are tak-ing more of a toll than usual,” she said.

Telsey expects the macro-economic factors will continue to infl uence stock performance, but retail sales trends also will be important. Retailers are better managed today than they used to be, particularly in terms of managing inventory growth in relation to the rate of sales growth, which should help mitigate negative factors, she predicted.

“Watching the consumer [and] consumer patterns is key, but the [retail] companies are better managed today than they have been in the past,” Telsey said.

Walter Loeb, former Wall

Street analyst, consultant and founder of Loeb Associates, described Thurs day’s morn-ing session where retail stocks plunged between 4 and 5 per-cent as “a wasteland.”

“It is my feeling that consum-er spending is not going to be very strong from now on,” Loeb predicted. The high-fashion sector is still good, he said, but disappointing same-store sales results at the lower-end retail companies, such as Wal-Mart Stores, show that consumers are feeling anxious about the econ-omy, which is impacting how in-vestors are trading in the sector.

“The consumer is cutting back and reexamining how to make ends meet,” Loeb said.

Loeb said a minimal dete-rioration of stocks wasn’t un-expected. “Stocks are due for a slight setback. I would not be surprised if they were to go 10 percent below current levels.”

— Liza Casabona

Rate Fears Lead to Volatility on Wall St.

Polo Ralph Lauren Ceases Use of FurNEW YORK — Polo Ralph Lauren Corp. said Thursday that it will stop using fur across its en-tire assortment, from apparel to the home collec-tion. The move will be effective with the upcoming holiday season.

That said, fur never accounted for much of Polo’s business, with sources saying that of the 150 million units a year that Polo Ralph Lauren sells, less than half a percent contains some type of fur.

According to a Polo statement, the company plans to give the remaining 1,200 pieces of cloth-ing that feature fur to a charitable organization to

distribute to people in need. “Fur has never been an integral part of our design strategy,” said a Polo spokeswoman in a statement. “We are publicly an-nouncing this decision because the use of fur has been under review internally and we feel that the time is right to take this action.”

A Polo spokeswoman stressed the company will continue to use leather, shearling, deer and goat.

Ingrid Newkirk, president of PETA, said in a statement that “Ralph Lauren clothes have always been elegant, but now you can feel comfortable in-side and out knowing that the company has made this compassionate decision.”

NEW DO: Do blondes really have more fun? Eva Mendes is about to fi nd out fi rsthand. Mendes chopped almost seven inches off of her hair and has gone blonde, according to hairstylist Rod Ortega, who transformed her mane earlier this week. Apparently Ortega and Mendes have toyed with the idea of going short for quite some time, but only now moved ahead with it. Aside from looking gorgeous, Ortega said Mendes “looks younger” with the shorter, lighter locks. Mendes is expected to reveal the new do at an event Saturday night.

WAIST NOT WANT NOT: Oprah Winfrey will be showing her

true colors as a presenter at Sunday’s Tony Awards at Radio City Music Hall, but who can blame the talk show queen? “The Color Purple” has 11 Tony nominations, including one for Winfrey for her role as

a producer. She will be decked out in the customized three-piece ensemble Gianfranco Ferré designed for her to wear to the show’s Broadway opening, but never did. Underlining her personal favorite, Winfrey plans to wear a purple-trimmed gray shantung bolero and a fl oor-length lace skirt with a purple band underneath at the Rockefeller Center event.

MIYAKE HONORED: For the fi rst time in its 22-year history, the Inamori Foundation has chosen a fashion designer as one of the laureates for its Kyoto prize. The organization said that it has selected Issey Miyake in the fi eld of arts and philosophy. The organization also awards prizes for achievement in advanced technology and basic sciences. During an awards ceremony in November, laureates will receive a diploma, 20-karat gold prize medal and cash gift of 50 million yen, or about $446,000 at current exchange. Inamori cited Miyake’s “tremendous contributions as a designer to the innovative development of clothing by fusing Eastern and Western cultures and applying cutting-edge technology….He applied the three-dimensional property of pleats in an unprecedented way to launch Pleats Please in 1993 and used groundbreaking weaving techniques for A-POC [A Piece of Cloth].”

Fashion Scoops

Eva Mendes


PRESTIGE COSMETICSNew Product Development

Prestige Cosmetics , a fast growing entrepreneurial globally distributedcolor cosmetics company known for its creativity and innovation, seeks adynamic, creative thinker with at least 5 years of color cosmetics productdevelopment experience. In this position you will develop new productsand promotions together with the marketing and creative teams for the USand World markets.

If you possess creative talent, in-depth product knowledge, excellentorganizational and analytical skills and aspire to work in an excitingentrepreneurial, fast paced environment, e-mail your resume and

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Data Entry/Cstmr. Srvc./EDISeeking exp’d., detail oriented individual.

Aria system a +.Fax resume: 212-515-2424

Designer/MerchandiserLeading intimate apparel company isseeking an experienced Men’s/Boy’sDesigner/Merchandiser for underwearand sleepwear. (Design to target demo-graphic 22-35 years old in men’s and6-14 in boy’s.) Must have proven abilityto forecast color, body, fabrication andpackaging trends. Exp with technical &computer design knowledge required.

Please e-mail resumes to:[email protected] EOE

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or E-mail: [email protected]

DESIGNER of APPAREL Fremont, CA Apparel Co. has immediateopening for Apparel/Sleepware Designerwith strong Illustrator/Photoshop/CADcapabilities. Must be able to design &develop lines for overseas mfr. Fullbenefits/complete benefit package. EOEE-mail resumes: [email protected]

Director of Training& Education

Atlanta, GA based cosmetic company isseeking a National Director of Trainingfor its Pür Minerals Brand. Candidatemust have 5-8 years of exp. working asa regional or national training role inthe cosmetic industry. Position basedin Atlanta; must be open to relocating.

Email: [email protected]

Leading Children’s Apparel Manufac -turer has exciting opportunities:

Graphic ArtistsSeeking a creative/trend orientedindividuals to develop art for NB/Inf/2-6x Girls, NB/2-7 Boys line. Min. of 3years exp. Photoshop/ Illustrator amust. Final art experience a plus.

Production Assistant3 yrs. min. exp. in boys/girlslabdips/samples from overseasproduction. Photoshop/Illustrator amust. Good sense of color/garmentconstruction.

Please fax resume to: 212-967-8108 Attn:SK

Patternmaker

www.kellyskids.comChildren’s wear co. seeks

Spec/Patternmaker for Freelanceposition. Min 5 years exp. in children’swear. Exp. w/ kids denim, fabric testingand shrinkage a plus E-mail resume to:

[email protected]

Prod’n Asst/Data EntryEstablished evening dress co. seeks amotivated, energetic, computer literateprod. Knowledge of Chinese languagea +. Fax resume to: (212) 398-0654

PRODUCTION ASSISTANTIntimate Apparel company seeks pro-duction assistant to work with produc-tion manager on all issues. Must becomputer literate and detail oriented.Major follow up and general officeduties skills preferred. Fast pacedenvironment. Please FAX your resumeattn: E. Williams (212) 842-4031. EOE.

Production AssistantMen’s Sportswear Mfr. seeks Prod’n. Asst.with 1-2 years industry exp. Must bedetail oriented w/excellent Excel skills.Ability to speak Chinese a plus. E-mailresumes with salary requirements to:[email protected]

Production AssistantTextile Company seeks detail oriented,self motivated individual w/ 1-2 yrs. ex-perience in overseas production. Mustbe proficient in Excel and Word. Abili-ty to speak Mandarin or Korean a plus.

Fax Resume to: 212-575-1231

Production

Jr. ProductionCoordinator - BAGSMust be Chinese speaking.

Our company is a leader in the Premiumand Promotional industry selling awide range of products consisting of:Bags, Accessories & Packaging iterms.We seek an exp’d individual w/excellentcommunication & follow up skills.Must be able to meet deadlines & ensureall programs are delivered on time.Project Management Skills are vital tothe success of this position.Must have exp working w/suppliers &understanding of product mfg process.

Midtown location. Paid Health Ins.Email resume: [email protected]

Purchasing ManagerResponsible for all ordering & imple-

menting purchasing procedures.Computers skills a must. NY Location.

Fax Patti: 973-812-1731

Web PDM ASSISTANTPerform adm. duties and assist tech.designer with data entry work in theWeb system. Help coordinate/executedetails that take a group/division fromproto stage to sample stage and throughto final product. Direct exp. in Web PDMis preferred.Requirements: 2 year college degree orequivalent work exp. in fashion industry, exp.in garment manufacturing/ productiona plus, strong computer skills, organizedand detail oriented. Fax resume to:

212-764-9210 or [email protected]

Sales ExecutiveFrenkel International Group, Inc. isa highly successful, rapidly growing,internationally based company locatedin New York City and Union, NJ.We are looking for a dynamic, energeticSales Executive who has a passion forcosmetic, bath & accessory gift products.Ideal candidates must be capable ofcommunicating effectively & professio-nally at all times. Must be self disciplinedand possess an ability to work in a fastpaced environment both independentlyand as a team. You must be able toestablish a new customer base whileexpanding upon relations with existingcustomers. Develop relationships withpotential clients in order to assess theirneeds and develop the best strategyfor their sales presentations. Transpor-tation is a must and your willingnessto work flexible hours a plus.For immediate consideration, please

E-mail your resume to:[email protected] include a method

in which to contact you. Thank you

SALESPERSONSeeking a highly motivated self-starterwith a following to help grow our alreadyestablished Jr. Missy, and Plus Sports-wear business. Call or Fax resume to:Tel: 212-730-1668 / Fax: 212-730-2782

Sales RepresentativeSales rep req’d for trendy dress Co. Musthave strong, established contacts withchain & department stores. Great oppty.

Fax: 212-382-3623.

SWIMWEAR MFR.Seeks experienced Sales Reps for

Florida, California & other territories.E-mail: [email protected]

or Fax resume to: (954) 659-8954

Sales AssociateBoutique seeking motivated, careeroriented sales associate. Must havestrong clientelling skills and one yearmin retail sales exp in designer market.Fax resume (212) 929-7574 or e-mail

[email protected].

SALES ASSOCIATEEuropean High End Luxury brand islooking for experienced Sales Associatefor its Madison Avenue Flagship Boutique.Candidates must have excellentcommunication & organizational skills.Knowledge of computer is required.

Please e-mail resume’ to:[email protected]

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