WWD.COM

Xavier Samuel in Louis Vuitton with Shermine Shahrivar.

2 WWD, WEDNESDAY, JULY 14, 2010

By Samantha Conti

LONDON — Handbags and leather goods with variations on Burberry’s signature check fueled first-quarter revenue at the company, which posted an overall 30.6 percent sales jump along with double-digit increases in all distribution channels and regions, excluding Spain.

Burberry said Tuesday that sales rose to 282 million pounds, or $420.2 million, from 216 million pounds, or $321.8 million, in the three months ended June 30.

Figures have been calculated at average exchange rates for the quarter.

The revenue figure does not in-clude Burberry’s Spanish operations, which are to be discontinued as of the fall season. Beginning with spring 2011, Burberry will sell its global collection, rather than the locally produced one, in Spain. Including Spanish operations, sales in the three-month period would have in-creased 27.1 percent to 291 million pounds, or $433.6 million, from 229 million pounds, or $341.2 million.

Chief financial officer Stacey Cartwright acknowledged in an inter-view that figures in the corresponding period last year were weak — revenue grew 8 percent as clients reduced in-ventories and the company was still in the heat of the downturn. But she described the 30.6 percent sales upswing as “high-quality” growth.

“There’s a momentum in the brand: Comparable-store sales [which does not include growth from newly opened stores] were up 10 per-cent in the period, and we are outperforming our U.S. department stores,” she said.

Top performers in the period included Burberry stores in the U.K., Italy, Germany, Hong Kong, and Taiwan. Burberry said store sales in the Americas grew in the low-single dig-its, as sales activity was significantly reduced for much of the quarter.

Chief executive officer Angela Ahrendts said in Tuesday’s statement the company plans to open 20 to 30 stores in the current fiscal year, predomi-

nantly in the Americas and the Asia-Pacific region.

Retail sales rose 21 percent, wholesale by 51 percent and li-censing by 36 percent in the peri-od. Cartwright said the improved timing of deliveries, monthly flow of goods and supply chain efficien-cies contributed to the increase in wholesale sales, in particular.

The revenue figures beat the market consensus of 263 million pounds, or $391.8 million, and Citigroup’s projection of 259 mil-lion pounds, or $385.9 million.

“Sales growth in [Burberry’s] retail division was stronger than expected in Europe and Asia-Pacific. Of the 16 percent growth in retail sales, new space accounted for 6 percent, and comparable-store sales growth for 10 percent.

This was despite less promotional activity, which bodes well for margins,” said Dennis Weber of Evolution in a report on Tuesday.

Cartwright said the big driver behind sales were large leather goods and handbags, which account for half of all nonapparel sales, and in particular the Haymarket, Nova, and Smoke check models.

Burberry Sales Gain 30.6 Percent

Bikkembergs Accused of Tax Evasion in Italy

WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2010 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.VOLUME 200, NO. 9. WWD (ISSN 0149–5380) is published daily (except for Saturdays, Sundays and holidays, with one additional issue in January, May, June, October and December, two additional issues in March, April, August, September and November, and three additional issues in February) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

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4FASHIONParty dresses get into the Greco-Roman spirit for holiday. What’s new this time around: traditional draped silhouettes are abbreviated.

GENERALThe retail landscape is being remodeled as economic volatility compels stores to alter traditional formats. Jenna Lyons was named Tuesday as president of J. Crew Group Inc. after the resignation of Tracy Gardner, president of retail and direct channels.Daisy Lowe is launching her first-ever clothing collection for French fast-fashion chain Morgan, and it is full of the kind of dresses and accessories that she herself might wear.Levi Strauss & Co. said its second-quarter loss widened as financing costs erased the positive effects of higher sales and margins and advantageous currency swings.

EYEA well-dressed group of Hollywood progeny and up-and-coming actors mixed on the roof of Louis Vuitton’s Rodeo Drive boutique Monday night for the brand’s annual party with Vanity Fair.

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“I love women with bigger bottoms and larger thighs. I think it’s so sexy.” — Daisy Lowe, page 3

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WWDWeDnesDaySportswear

• Additional images from the Louis Vuitton bash

• Full coverage of Berlin Fashion Week, including

all the looks from the collections

• Back in Time: Mary Pickford faces a fashion

controversy in 1920

TODAY ON

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QUOTEDAILY

By Luisa Zargani

MILAN — Italy’s tax authorities are accusing Belgian designer Dirk Bikkembergs of evading tax payments of 111 million euros, or $139.6 mil-lion at current exchange rates.

Bikkembergs’ lawyer, Francesco Giuliani, told WWD the allegations stem from an audit carried out in 2006 and 2007 by the Guardia di Finanza, an Italian police force under the authority of the Minister of Economy and Finance that investi-gates tax evasions and related violations.

The inquiry is focusing on two companies, 22 Srl, which produces clothing in Italy for Bikkembergs’ brand, and Luxembourg-based IFF Sarl, which distributes the brand’s prod-ucts. The police and prosecutors allege that the designer’s organization is in Italy, but that rev-enues are redirected to Luxembourg instead of being declared and taxed in Italy.

Giuliani said Bikkembergs is contesting the charges. “We will ask for a suspension of the ver-dict,” he said, referring to the accusations. “Our position is that the authorities have not taken into account the real situation: IFF does not have a structured organization in Italy, and they

[the tax authorities] did not correctly calculate the turnover of IFF, as they did not take into ac-count the company’s costs.”

Giuliani said there were “glaring” mistakes in the data, although the fiscal commission in Pesaro, Italy, has so far rejected the designer’s efforts to refute the allegations.

Bikkembergs’ collections are produced in Fano, in central Italy, either directly or indirect-ly. “Bikkembergs is very keen to preserve pro-duction in Italy,” said Giuliani, who hopes the company will be cleared within a year or two. “We feel we are in the right.”

Bikkembergs was one of the Antwerp Six, an influential group of designers from Antwerp, Belgium’s Royal Academy of Fine Arts that includ-ed Ann Demeulemeester and Dries Van Noten, among others. Bikkembergs moved on from the academy to start his career with a footwear collec-tion in 1986. His men’s line was launched in 1988, followed in 1993 by a women’s collection. Since the spring 1989 season, the designer has worked only with Italian manufacturers. He is known for his soccer-inspired sportswear designs.

The company did not provide financial or re-tail information.

By Jean E. Palmieri

JENNA LyONS WAS NAMED TUESDAy AS president of J. Crew Group Inc. after the resig-nation of Tracy Gardner, president of retail and direct channels.

Lyons will retain her responsibilities as ex-ecutive creative director.

Gardner is leaving the company effective Sept. 13.“This is nothing other than an important

personal decision” for Gardner, said Millard “Mickey” Drexler, chairman and chief executive officer, adding that she wants to “spend more time with her children.”

Drexler, who worked with Gardner for almost 20 years at J. Crew and their former employer, Gap Inc., described her as “a great merchant, business partner and human being. But we have a really strong team and there are people in place to step up and take on more responsibility.”

Drexler said J. Crew will spread Gardner’s

duties among executives. Libby Wadle, who had overseen the factory outlets, will become execu-tive vice president of retail and factory.

Charlie Phillips, senior vice president of men’s and women’s retail merchandising, now will serve as senior vice president of factory and men’s retail merchandising. Renee Brantjes will continue as vice president of women’s retail merchandising.

Merchandise production responsibilities will be under James Scully, chief administrative of-ficer and chief financial officer.

Trish Donnelly will continue as executive vice president of the direct channel, and Laura Willensky will remain as senior vice president of the Madewell retail channel.

The last person to hold the president’s posi-tion at J. Crew was Jeff Pfeifle, a close associate of Drexler, who left the company two years ago.

“The team at J. Crew has considerable depth, and I am…confident in our ability to achieve a seamless transition,” Drexler said.

J. Crew Taps Lyons as President

Christina Ricci in Louis Vuitton.

Burberry Prorsum,

fall.

WWD.COM

By Joelle Diderich

PARIS — Daisy Lowe certainly knows how to play to her strengths.

As one of London’s leading “It” girls, the 21-year-old model celebrated for her voluptuous figure is a regular on the party circuit, where she also dou-bles as a DJ. Fittingly, her first-ever clothing collection for French fast-fashion chain Morgan is full of the kind of dresses and accessories that she her-self might wear.

“I love women with bigger bottoms and larger thighs,” Lowe said in her throaty voice. “I think it’s so sexy.”

Dressed in a silver Lurex maxidress of her own design (set off by turquoise nails courtesy of Chanel varnish in Nouvelle Vague), she sat in a dark-walled room at the trendy Hotel Amour surrounded by evening dresses, a black cape with quilted red lining and a gold-en owl pendant — all part of her Oiseau de Nuit (Night Owl) capsule collection.

With an enviably trim waist, Lowe is far from a plus-size model, and her recent cover shoot for the U.K. edition of Esquire testifies to her killer curves.

“I’m not big in any way, but I do have a womanly shape rather than the normal model size, and so, of course, I’m extremely con-scious of it,” she said matter-of-factly. “I’m reminded of it every time I go to work, so I had to make sure that [the clothes were] flattering to that shape.”

The daughter of Bush front man Gavin Rossdale and singer-songwriter Pearl Lowe, she has been modeling since the age of 15 in campaigns for brands including Louis Vuitton, Mango and Marc by Marc Jacobs.

Lowe has been approached in the past about launching a clothing range but has decided to make her designing debut far from the prying eyes of the British media, which obsessively tracks the ups and downs of her love life (her current squeeze, “Doctor Who” star Matt Smith, was in

Paris to lend behind-the-scenes support).“I’d been asked by English brands and

they just weren’t prepared to give me enough creative control, and Morgan did,” she ex-plained. “Actually, it was quite nice for me to come and do it somewhere different, away from the English press. It kind of gave me a bit more creative headspace to just go: ‘I’m not going to be judged.’ ”

The collaboration is part of a wide-ranging revamp at Morgan, which was acquired last year by Groupe Beaumanoir after going into administration. Hervé Bailly, marketing and communication director, said it was the first time Morgan had collaborated with a guest designer, though it has previously featured high-profile models including Eva Mendes and French first lady Carla Bruni-Sarkozy in its advertising campaigns.

He called Lowe a good fit because of her natural affinity with Morgan, which specializes in evening clothes, and her strong personality.

“She is young and she has this glamorous spirit with a slight rock twist,” Bailly said. “She is not a clothes hanger, but someone who has an opinion about fashion. She has an incred-ible collection and is a real expert on vintage.”

The Morgan collection will go on sale on Nov. 4 in key stores in France and on the re-tailer’s Web site. Prices range from 25 euros, or $31, for a necklace to 349 euros, or $440, for a leather catsuit, with dresses priced at 79 to 125 euros, or $99 to $157.

The brand will launch a dedicated Web site for the event, which will feature a short film directed by Tom Beard and an advertis-ing campaign portraying Lowe and her friends getting ready for a night out on the town.

“I chose the photographer, the location, the hair and makeup people, the models — everything,” Lowe said. “[They are] literally just my mates whom I forced to be covered in vines and loads of glitter. Bless them — it took them weeks to get that glitter out of their clothes and their hair!”

The foray into art direction is just one of many creative outlets for Lowe, who is taking time out from her hectic schedule to explore her artistic side. She has a small part in the upcoming David Allain movie “Geography of the Hapless Heart” and is taking photographs that she hopes to exhibit.

“Since I left school when I was 17, I made a very big point of always wanting to keep my brain really active,” she said. “I plan on being a creative in whichever way, shape or form for the rest of my life.”

THE COVER DECISION: GQ has scored LeBron “The Decision” James for its September cover. Sources said the cover shoot had been in the works for weeks before his uberhyped — and much ridiculed — announcement was revealed on ESPN on Thursday. A spokeswoman for the magazine said it never discusses upcoming issues. No word on who photographed or interviewed the new Miami Heat star, but sources said he bumped Ryan Reynolds, who is in the new film “Buried.” James last appeared on a GQ cover in February 2009, with the story written by Joel Lovell and shot by Nathaniel Goldberg.

In other cover news, Interview has “Gossip Girl” actress and Vogue regular Blake Lively appearing on the September issue, while Cosmopolitan has Jessica Alba, Town & Country shot Tory Burch and Lucky is banking on Jessica Simpson. Details is going with Zac Efron, who last appeared on the cover for the January-February 2008 issue. And while Halle Berry is set for Vogue’s cover, her ex-flame, Gabriel Aubry, isn’t staying on the sidelines. He was shot by Details for a multiple-page editorial fashion spread that was fittingly called “The Bachelor” inside the September issue.

— Amy Wicks

FASHION STATEMENT: Glamour has signed on Anne Christensen, formerly women’s fashion director at T: The New York Times Style Magazine, as executive fashion director, effective Aug. 24. She succeeds the magazine’s longtime fashion director, Xanthipi Joannides, who left last month. As for Christensen’s freelance work (which she was able to do while at T, since she was on contract), a spokeswoman for the Cindi Leive-helmed title noted: “[Christensen] has a select number of commitments that she will fulfill,” but emphasized, “This is a full-time position.” Translation: No more freelance. We think. In addition, Leive told WWD she plans to “significantly increase” fashion pages in the magazine. Christensen had been a finalist for the editor in chief’s slot at T, but those spoils ultimately went to Sally Singer, formerly of Vogue. — Nick Axelrod

NEW FACES: Over at Town & Country, new editor in chief Stephen Drucker tapped three new editors Tuesday, including Danielle Stein, formerly senior editor at W magazine, as features editor, and Nandita Khanna, previously an associate editor at Departures, as senior editor. Stein will oversee the front-of-book and features, while Khanna will work with the fashion department on articles and features and cover home design and interiors. — N.A.

WWD, WEDNESDAY, JULY 14, 2010 3

Here and below: Daisy

Lowe and friends in the collection she designed for

Morgan.

MEMO PAD

By Miles Socha

PARIS — Google Inc. could be held liable under French civil law for al-lowing advertisers to buy keywords corresponding to registered trade-marks such as Louis Vuitton, the French Supreme Court said Tuesday.

The court referred the long-running case to the Paris Court of Appeals to rule on the jurisdiction of French courts and to determine if the online search giant committed any wrongdoing detrimental to the maker of luxury leather goods.

The appeals court is not expected to convene until after the summer vacation period.

LVMH Moët Hennessy Louis Vuitton said in a statement that it “wel-comes” the Supreme Court’s ruling, which it characterized as “in line” with an earlier decision by the European Court of Justice.

Google legal counsel Benjamin Amaudric du Chaffaut said the court backed the search engine’s position “that Google has not infringed trade-mark law by allowing advertisers to select keywords corresponding to third-party trademarks. We believe this decision is beneficial for users.”

Last March, both LVMH and Google also claimed victory when the European Union high court said Google did not violate trademark laws with its AdWords service, in which companies bid to have “sponsored links” appear alongside Internet search results.

However, the court also said advertisers who buy such key words must make clear where the goods they are selling originate, a partial victo-ry for luxury firms seeking to stamp out counterfeits and protect their brands online.

The principles outlined at Europe’s high court in Luxembourg were to apply to the 27 countries of the European Union. However, recourse in terms of liability was to be “governed by national law” on a case-by-case basis. The European Court has since bounced the case back to France’s highest court.

LVMH said Tuesday the French Supreme Court ruling “helps to clarify the rules applicable to e-commerce in order to ensure greater legal certainty to the benefit of both businesses and consumers operat-ing online.”

Google, owner of the most-used Internet search engine, and LVMH have been fighting in France since 2003 over Internet searches linked to trademark names.

In 2006, the Paris Central Court ordered Google to pay LVMH 300,000 euros, or $443,859 at average exchange rates for the period, for trade-mark infringement.

LVMH has also been active in protecting its brands on online auction giant eBay.

Google, LVMH Head to Appeals Court

Daisy Lowe Launching LineLeBron James

WWD, WEDNESDAY, JULY 14, 20104

Roman Holiday

La Rok Luxe’s nylon dress. Dallin Chase belt; Suecomma Bonnie pumps.

A.B.S. by Allen Schwartz’s polyester and spandex dress. Suecomma Bonnie booties.

Whitney Eve’s polyester dress.

WWD.COMWWD, WEDNESDAY, JULY 14, 2010 5

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6 WWD, WeDnesDay, july 14, 2010

Berlin CallingBy WWD Staff

BERLIN — The city was hot this season — and not just because of World Cup fever and temperatures near 100 degrees.

There was a packed schedule from July 7 to 10. Buoyed by a better-than-expected retail season and a solid fashion lineup for spring 2011, spirits were high at the Bread & Butter and Premium trade shows, as well as in the Mercedes-Benz Fashion Week Berlin tent and off-site venues.

Although there are no official attendance figures for Bread & Butter, Berlin’s largest show, visitors seemed on par with January, which attracted an estimated 90,000 people. Premium reported an 11.7 percent increase to 46,712 visitors versus January, and attendance surged more than 50 percent compared with the July 2009 edition.

A core group of young Berlin designers had energy to spare. Their collections looked increasingly sophisticated and accomplished in execution. Fashion week remained the key show center for more established German collections, and international brands such as Calvin Klein added to Berlin’s attraction this season. But the emerging local talent set the week apart.

Boss BlackBoss Black women had room to move in unfettered dresses, swinging skirts and easy tops or slouchy jumpsuits. Even the more body-conscious slipdresses, in layers of crisp voile or silk with jewel-encrusted panels front and back, made an unencumbered impression. The men, on the other hand, were whipped into form via precise tailoring with a Seventies Roger Moore vibe, plus skinny shorts, narrow pants and tapered shirts. This season’s favored furnishings trend: matching shirts and ties.

Rena LangeDesign director Julian Neale navigated a nautical theme with freshness and chic. Standouts included a black-and-midnight parka with cropped balloon sleeves, an elongated navy cotton sweater worn with flowing navy trousers and a sleeveless mariner striped tank paired with a beaded lace skirt. Fantasy fabrics were pivotal, with intricate ribbon compositions for pencil skirts and little shifts, an organdy dress in an ombré wave of white to blue

and loads of eyelet ruffling up the sleeves of a blouse worn with high-waisted knit briefs, or jeweled and appliquéd on the tiered skirt of a linen dress.

Lala BerlinThe lords of the jungle were alive and well at Lala Berlin, as seen in lion buff tones and lacquered and sequined leopard-skin prints, knits and even brocade. But the real ruler of designer Leyla Piedayesh’s lineup was the caftan. For spring, it was wider, simpler, billowing in chiffon, sometimes tucked, printed, morphing into overalls or verging toward the tentlike. The best was a long red dress held up by two bralike shoulder straps.

LaurèlLaurèl’s Berlin runway debut this season made the case for real clothes. No longer a member of the Escada Group, Laurèl has polished both its look and its finish with a decidedly urbane result. Suede was a material of choice, in perforated cardigans or as circle appliqués on a cap sleeve dress. And what would a German collection be without red and black? For day, the lineup included a black crepe shirtdress and a red suit with a shapely jacket.

Kaviar GaucheThere was a surprisingly sweet current running through the shows, but designers Alexandra Fischer-Roehler and Johanna Kuehl like to keep their confections sharp — in chiffon in the palest of Jordan Almonds tints and panels that billowed and flowed. But to create an edge, skinny white chiffon pants-cum-leggings were worn under the gowns and short dresses, sometimes with tap pants underneath. For shoes, there were shorter summer versions of Kaviar Gauche’s bandage-strapped boots in a pastel palette.

Mongrels in CommonIn Livia Ximénez-Carrillo and Christine Pluess’ lineup, pants were slim, with a touch of suede, and slouchy in chambray, topped by loose tanks, blazers and cropped jackets, while shorts melded an athletic and urban feel. Pleated shoulder details showed up on classic trenchcoats and dresses, and adorned blouses and shifts. Throughout, soft silk fabrics contrasted with military touches.

Schumacher Boss Black

Boss Black

Lala Berlin

Rena Lange

Kilian Kerner

Perret Schaad

Dawid Tomaszewski

WWD.COM7WWD, WeDnesDay, july 14, 2010

Berlin CallingPerret SchaadStrong geometries fell softly in the new collection from Johanna Perret and Tutia Schaad. The young Berliners offered skirts in silk, organza and panne velvet gathered at the waist with overlapping front folds to create a cascade effect, while side pleats added gentle structure. Pants were simple and relaxed — some cropped, others flowy — while elegant tops gave balance. Surprises were around every architectural corner: A pastel collar peeked from the top of a boxy camel coat, a long skirt was cut high in the front for added fluidity and a blouse-and-skirt combo perforated with tiny squares demanded a closer look.

Dawid TomaszewskiFor a city that doesn’t always celebrate red-carpet dressing, Dawid Tomaszewski’s first major fashion week runway show had a strong impact. Extravagant elegance was in full flower in the 17 looks, inspired by sculptor Richard Serra’s “Torqued Ellipses.” Silk organza played the leading role in sheer suits and dresses constructed of airy circular layers in black, off-white and silvery gray, while accents of soft marabou clouds floated down the runway.

Kilian KernerKilian Kerner seems to have found his stride this season, showing competent tailoring in the men’s wear collection and covetable evening looks for women. Cocktail dresses featured silver detailing — a stripe down the front of a pale beige shift gown and a body-conscious minidress covered in sequins. Highlights of the men’s collection included a gray double-breasted jacket with a yellow lining and longer black jackets, frequently paired with ultralong tank tops and little shorts.

MichalskyMichael Michalsky’s signature collection highlighted the designer’s strengths. For women, that meant some great leather, including a tight, three-quarter-sleeve top in bisque or black leather and skinny, cropped-below-the-knee black bikers’ pants. Both were good foils for more feminine pieces such as loose, platinum silk wrap pants; a crepe cocktail skirt bow-tied at the back, or tangerine summer tweed jackets and coats. For men, Michalsky offered reversible casual sport coats, while his new club blazer was short and slightly cut away in the back. And then came part two: a preview of the designer’s costumes for September’s new Yma dance review at the FriedrichstadtPalast in Berlin that channeled inspirations as varied as Las Vegas, Marge Simpson and Conan the Barbarian.

SchumacherDorothee Schumacher showed her love of feminine details for spring. Yes, there were some bows — but not where you’d expect them, such as the luggage tan leather top tied in claret ribbons in the back. There was a lovely ease to the fabric and silhouette mix, as in the long peach silk charmeuse top paired with a gray, laser-cut leather cardigan and a short A-line organza skirt belted in raw leather.

Kilian Kerner

Mongrels in Common

Michalsky

Kaviar Gauche

Michalsky

For full runs of show from Berlin, see WWD.com.

Laurèl

WWD.COM

Continued from page oneof those doors globally over the next year. It started with a store in Aventura, Fla., in May, and a second last month in Rome. The company’s Guess denim stores also have a new look and are branded separately from other company lines, such as G by Guess.

“These days, everybody is specializing in one thing or another,” said Paul Marciano, vice chairman and chief executive officer of Guess Inc. “To have across-the-board success in all categories is very hard. Very few nondiscount companies can do it. The emporium-style shopping experience doesn’t work anymore if you want to maintain any kind of brand value or identity.

“Customers are well educated, have clear ideas about what they want and they come to shop for those items,” he said. “It’s hard to mix, in the same space, lines with different identities.…We believe the small-er footprint is easier to manage and more profitable.”

Even luxury doors are getting in on the retail revamps. Catherine Malandrino’s Los Angeles concept

boutique, Malandrino Maison, evokes a lounge at-mosphere, including a Parisian-style cafe, artwork and books for sale.

“In this environment, with clientele feeling so much pressure, you have to make it a warm, comfort-able environment they will want to come visit and relax,” Malandrino said when her Los Angeles store opened last year. “If you can bring them in, then the retail sales will come. But it’s getting people into a boutique now that’s the challenge first.”

Vera Wang, who scaled back plans for her Los Angeles boutique and jettisoned a store for her halted Lavender line, said her approach to retail has changed in the last two years.

“People want a more intimate experi-ence now,” she said. “You can’t just cram things down someone’s throat — and you wouldn’t want to — especially now that they think they can get a better deal at department stores. You have to give them a reason to come in, a special experience. When the majors went 90 percent off, it changed things so much, it was unbelievable.”

That approach contrasts with the large formats of fast-fashion value retailers, including Forever 21, H&M and Zara, which embrace bigger stores hous-ing a wide range of merchandise.

“For us, the timing couldn’t be better. The con-sumer is looking for value and the larger store con-cept allows a broader array of merchandise across all categories,” said Larry Meyer, executive vice president and chief financial officer of Forever 21. “There’s been a lot more opportunity for us to get larger spaces, and in primary markets where we’ve been looking to grow our presence.”

Analysts said the trend toward smaller, average store sizes will have staying power because those units are regarded as more profitable and easier to manage. With inventory at many stores slashed by as much as 30 to 40 percent compared with three years ago, there is diminished need for storage space.

“The consumer is in control, and the approach of retailers to their brick-and-mortar stores now is a testament to the divergence in the market — it’s a high-low approach,” said Alan J. Barocas, an Atlanta-based retail consultant and former International Council of Shopping Centers trustee.

“Some people are going the opposite, like Forever 21 and other value-oriented big boxes, but outside of discounters, generally people are taking less space for less money and looking to edit,” he said. “There are smaller door counts, too, as retail-ers are trying to use stores as a test ground, but at less overhead cost than in the past.”

Retail sales, excluding automobiles, gas stations and restaurants, slid 2.5 percent in 2009, the National Retail Federation said. Although there have been signs of im-provement recently, including reduced vacancy rates in some cities, experts agree the recovery will be slow and bumpy. Retail stocks took a 6.2 percent hit in the first half of the year and there is little to suggest that con-sumer spending, which comprises 70 percent of the U.S. economy, will go on a steep climb anytime soon.

In fact, consumer confidence dropped sharply in June because of anxiety about the economy, and Federal Reserve chairman Ben Bernanke said last month that the jobless rate, now at 9.5 percent, will probably remain “high for a while.”

The first-quarter gross domestic product growth rate of 3.2 percent released by the Commerce Department’s Bureau of Economic Analysis is a positive indicator, but economists said evidence of a robust recovery would require a growth rate of more than 5 percent that would drive down the jobless rate.

The overall U.S. retail vacancy rate hit 10.8 percent in the first quarter, according to real estate research firm Reis Inc. Vacancies at the biggest shopping centers reached 8.9 percent. Preliminary figures for the second quarter, expected to be finalized Aug. 1, have the retail vacancy rate at 10.9 percent and the rate for the largest centers at 9 percent.

The empty storefronts give retailers an opportunity to test markets with short-term leases at lower rents.

“The bigger brands have to cut up into smaller sections and make themselves unique because they have to be specialized and cater to a specific region or con-sumer profile,” said Zach Augustine, creative director at the Winston Retail Solutions consultancy. “They need to divide up and maintain brand integrity and be able to maintain the elevated price point.”

Smaller, multiline boutiques are pursuing other means of differentiating them-selves, and markets such as Los Angeles have become incubators for new concepts. Among them are:

• Gerard Guez’s Live on Sunset — located in a former Tower Records space — has a focus on tech-nology and new media, with video and audio pro-duction capability built into the location for live Webcasts of fashion shows, musical performances and a talk show.

• TenOverSix, a boutique that carries Alexander Wang, Band of Outsiders, Vivienne Westwood and Bodkin, hosts installations from local artists, as well as exclusive store-in-store furniture and fixtures from Brooklyn-based The Future Perfect.

• Space 15 Twenty, a small shared retail com-plex in Hollywood, has a gallery space, bookstore, vintage clothing store and local eatery, Umami Burger, attached to the development —also home to an Urban Outfitters — and hosts movie screen-ings, musical performances, flea market-style sales and receptions.

• Code C, a new boutique at Sunset Plaza, carries a limited number of designer lines, such as Kelly Locke, Valerj Pobega and Diesel Black Gold, but dis-plays each collection in its entirety, essentially func-tioning as a public showroom. The store also hosts rotating photography exhibits and sells high-end custom picture frames.

• Book publisher Assouline opened its European-style space as a combination bookstore and eatery in partnership with high-end restaurant Bastide on Melrose Place — an upscale retail stretch that became a reminder of the recession’s toll on re-tail, with shuttered stores such as Sergio Rossi, Lambertson Truex, Mulberry and Mary Norton. “Everything was all the same — it looked the same and everyone tried to do the same thing. It was crazy, and it didn’t work,” said founder Prosper Assouline.

“Smaller, privately owned boutiques have to be very creative to compete, but it’s hard,” Augustine said. “They are typically mismanaged and weren’t prepared to weather this storm. Those [were] the first places people stopped shopping. Prices are higher and people can find it cheaper online, plus the return policies are nonexistent. If the Gaps and Guesses are willing to cater to you personally and you can return your purchase within 60 days, then why not? The store’s return policy is huge in this. It gives consumers a sense of security.”

But fresh approaches can be risky. The prolif-eration of pop-up doors is partly a testament to the desire of some retailers, chastened by high-cost leases, to test markets before committing to a long-term presence.

Gap’s 1969 concept tested Los Angeles with a temporary space on Robertson Boulevard before settling into a location across the street. Target’s exclusive collaborations with designer labels such as Zac Posen, Loomstate and Liberty of London led to a series of temporary spots in New York and Los Angeles. Donna Karan’s Urban Zen test-drove Robertson Boulevard, and popular Los Angeles-based leather brand Illia is giving Venice Beach a trial run.

Seasonal concepts also are taking hold as a way for retailers to minimize capital expenditure and exposure to the ups and downs of retail real estate. Toys ‘R’ Us will open hundreds of temporary holiday concept stores, and Spencer’s Gifts is pushing ahead with its ToyZam and Spirit Hollywood formats.

And, while segment-specific market penetration may be the goal with the specialty concepts, satura-tion is another potential pitfall.

“A concept has to be properly executed in terms of selecting the right segment or demographic to specialize in,” Augustine said. “If there are too many players in the market, as with high-end denim, for example, then it’s much harder to infuse that slice of the sector with new life. Customers are already weary of too many brands offering the same thing at the same price point. Having a bunch of pricy spe-cialty jeans stores, for example, won’t net results.”

Alisa Loftin, who owned Aero & Co. boutique in Los Angeles for more than a de-cade until it closed in March because of the recession, said a willingness to experi-ment is key to survival in major retail markets like Los Angeles and New York. Loftin is hoping her store can reemerge using an online platform before taking another crack at a brick-and-mortar presence.

“There’s no obvious successor to the old model,” she said. “That makes it much harder to predict and plan for the next business cycle. That old system is totally bro-ken now and it’s about trying to figure out what’s next. People have to invent it for themselves. This really is a tough reinvention, and there will be passes and fails.”

WWD, WEDNESDAY, JULY 14, 20108

Retailers Seek an Edge With New Formats

From top: Guess has given its denim stores a new look; TenOverSix hosts installations from local artists; Assouline opened a combination bookstore and eatery.

The preliminary second-quarTer u.s. reTail vacancy raTe.(Source: reiS inc.)

10.9%

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DAILY COMPANIES P/E VOLuME AMt

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By Arnold J. Karr

A strong stArt to the second-quarter earnings season helped lift the s&P retail Index 2.5 percent on tuesday and put it over the 400 mark for the first time in two weeks.

the index climbed 9.76 points to 404.17 and moved as high as 405.95. the percentage gain was more than a full point better than the 1.4 percent advance of the dow Jones Industrial Average, which logged its sixth con-secutive positive session and closed at 10,363.02. the s&P 500 was up 1.5 percent to 1,095.34 and the nasdaq composite rose 2 percent to 2,242.03.

the retail index fell below 400 on June 29. But, helped by strong quarter-ly results from Alcoa and csX, stocks began moving higher at the market’s opening and maintained an almost un-interrupted upward trajectory all day.

After tuesday’s performance, retail stocks remained 19.2 percent below their 52-week high of 499.91, reached April 26, but 6.4 percent above the 2010 low of 379.74 on July 1.

“the rally in equities should last 30 to 50 days, which is normal after a sig-nificant sell-off,” said richard hastings, macro and consumer strategist at global hunter securities.

As for the long-term outlook, hastings said: “domestic economic problems are starting to weigh down on companies. the s&P retail Index is

back to where it was in 2004.…We don’t believe that retail stocks, generally speaking, would recover and retrace anything close to their April 2010 highs.”

James goldstein, analyst at creditsights, said, “the outlook for the remainder of the year will still be shad-owed by an unfortunate labor market, but overall progress in the industry has provided for a small amount of optimism and the gains in the s&P retail Index.”

the day was especially strong for many specialty retailers. coldwater creek Inc. was up 8.6 percent to $3.90; Zale corp., 8.6 percent to $1.77; the talbots Inc., 8 percent to $11.38, and new York & co. Inc., 7 percent to $2.46. Among vendors, Kenneth cole Productions Inc. rose 9.3 percent to $13.13, and revlon Inc., 7.5 percent to $12.68.

• CEO’s Confidence Holds: the conference Board’s quarterly Measure of ceo confidence held steady during the second quarter, landing at 62, unchanged from the first quarter and down 2 points from the fourth quarter of 2009. A reading of 50 or more indicates more positive than negative responses.

• Target Upgraded: Moody’s Investors service tuesday changed the ratings out-look for target corp. to “stable” from “neg-ative,” based on the retailer’s improved operations and the ratings agency’s belief that problems with its credit operations are “largely behind the company.”

— With contributions from Vicki M. Young

LevI strAuss & co. sAId Its sec-ond-quarter loss widened as financing costs erased the positive effects of higher sales and margins and advantageous cur-rency swings.

For the three months ended May 30, the net loss attributable to the san Francisco-based denim and sportswear firm rose to $14.4 million from $4.1 mil-lion in the year-ago period. Included in the bottom-line result was a $16.6 million pretax loss on the early extinguishment of debt. operating income, exclusive of the debt effect, was up 23.4 per-cent to $69.2 million from $56.1 million a year ago.

sales rose 8.1 percent to $958 million, versus $886.5 million in the 2009 quarter, and licensing revenue grew 3.2 percent to $18.6 million from $18 million. total revenues moved up 8 percent to $976.5 million from $904.5 million, and gross margin rose 522 basis points to 51.1 percent of sales against 45.9 percent in the year-ago period. the company said that the improvement reflected the increased contribution of the company’s stores and their higher margins compared to wholesale operations.

In the Americas, sales were up 8 per-cent, to $558 million, and grew 6 percent on a constant currency basis. In europe, sales increased 9 percent, to $240 mil-lion, and gained 7 percent at constant currency. Asia-Pacific sales hit $178 mil-lion, an 8 percent rise that, upon conver-sion for currency effects, translated into a 2 percent decline.

“We continue to invest behind the brands,” John Anderson, president and chief executive officer, said on a confer-ence call with analysts. “We believe we have a compelling consumer proposi-tion. We selectively look to continue to invest in retail. It’s a battle.”

he said Japan continues to detract from results in the Asia-Pacific region, but added that he was somewhat encour-aged by results in europe: “If there’s good news, it is that there is no further deterioration.”

For the six months, net income dropped 4.5 percent to $42 million, from $43.9 million, as total revenues picked up 8.6 percent to $1.97 billion, from $1.82 billion. Year-to-date operating income was up 8.8 percent to $176.5 million from $162.1 million during the first six months of 2009, and gross margin improved to 51.3 percent of sales from 46.4 percent.

cash and cash equivalents rose to $353.1 million as of May 30, 30.4 percent above the $270.8 million on the books as of nov. 29. Inventories rose to $452.5 million from $451.3 million six months earlier.

Long-term debt stood at $1.78 billion on May 30, down from $1.83 billion on nov. 29.

— A.J.K., with contributions from V.M.Y.

By Kristi Ellis

WASHINGTON — textile and apparel im-ports to the u.s. continued a trend of double-digit growth in May, as retailers and brands anticipating a more robust recovery bolstered their inventories.

the overall trade deficit increased to $42.3 billion in May from $40.3 billion in April, the highest level in 18 months, the commerce department said tuesday.

shipments of textiles and apparel to the u.s. rose 20.7 percent in May to 4.5 billion square meter equivalents com-pared with a year earlier, the commerce department office of textiles & Apparel said. the increase marked the fourth consecutive month of double-digit growth in textile and apparel imports.

Apparel imports were up 18.45 per-cent to 1.87 billion sMe in May and tex-tile imports rose 22.4 percent to 2.7 bil-lion sMe.

“retailers are continuing to add in-ventory, which at this point is probably a positive signal suggesting that confi-dence hasn’t taken too big of a hit from

recent events,” said Aaron smith, senior economist with Moody’s economy.com.

combined shipments of textiles and apparel from china, the largest suppli-er to the u.s., increased 28.6 percent to 2.1 billion sMe in May from a year ear-lier. the volume of apparel from china jumped 26.2 percent to 748 million sMe, while textile shipments rose nearly 30 percent to 1.4 billion sMe.

textile and apparel shipments from India, which surpassed vietnam in April to become the second-largest supplier to the u.s., rose 20 percent to 276 million sMe in the month. Apparel imports from India gained 12.7 percent to 93 million sMe, while textile imports increased 24 percent to 183 million sMe. Apparel and textile shipments from Pakistan, the third-largest supplier to the u.s. in May, rose 5.2 percent to 243 million sMe, while combined imports from vietnam, the fourth-largest supplier to the u.s., grew 20.9 percent to 213 million sMe. combined imports from Mexico, the fifth-largest supplier to the u.s., rose 20 per-cent to 214 million sMe.

By WWD Staff

BEIJING — china’s textile industry could face serious repercussions if the value of the yuan appreciates 5 percent against the dollar, state media reported tuesday.

china national textile & Apparel council vice president gao Yong told the china daily that a 5 percent cur-rency appreciation could cause half of the country’s textile companies to go bankrupt. he said the bankruptcies would be spurred by the industry’s thin profit margins of around 3 to 5 percent. the textile industry output in 2009 ac-counted for just more than 11 percent of china’s gross domestic product, a Ministry of commerce report said.

the chinese government conducted a yuan stress test in March that indicated textile manufacturers’ profit margins would decline 1 percent if the currency appreciates by 1 percent, according to the newspaper.

china’s central bank announced last month it would allow greater flexibil-ity in the value of the yuan against the dollar, amid pressure from the u.s. and other trading partners. the People’s Bank of china did not say how far the currency might fluctuate.

Analysts told state media that textile industry profit margins already have

been affected by rising raw material and labor costs, together with an appreciat-ing yuan, which rose 21 percent against the dollar from 2005 to 2008.

Zhang Bin, an analyst with sinolink securities, said textile products have be-come more expensive, resulting in dimin-ishing price advantages compared with vietnam, Indonesia and other southeast Asian countries. china’s textile manufac-turers could further be squeezed by rising labor costs, Zhang said. demands from factory workers for higher wages have become a central focus around the coun-try after a spate of suicides at Foxconn technology, a hardware producer in the southern city of shenzhen.

As a result of the suicides, the compa-ny has offered employees wage increases.

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5WORSTPERFORMERS DAILY COMPANIES P/E VOLuME AMt

HIgH LOw LASt%CHANgE

* Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros.

Retail Stocks Up 2.5%, Back Over 400 Levi’s Loss Expands in Second Quarter

Imports See Strong Growth in May

Chinese Textile Group Warns of Bankruptcies

5BESTPERFORMERS

“We selectively look to continue to invest in retail. It’s a battle. ”

— John Anderson, Levi Strauss & Co.

Appreciation of the yuan could hurt textile firms.

WWD.COMWWD, WEDNESDAY, JULY 14, 2010 11

BERLIN — German cosmetics brand Artdeco turns 25 this year, and is offering a discount of 25 percent on a selection of best-selling and new products from its beauty line. Products included in the promotion will feature a red “25 Years” label.

Discounted products include a range of color cosmetics, such as individual eye shadows, now priced at 3.60 euros, or $4.56 at current exchange; blush at 6.38 euros, or $8.08, and All in One Mascara at 9.60 euros, or $12.16.

The brand, which claims to hold more than 17 percent of the mar-ket share for selective makeup in Germany, is known for its refillable magnetic compacts called Système Mosaïque, which lets consumers cre-ate custom eye shadow, concealer and

blush palettes. Related products ac-count for 20 percent of Artdeco sales.

The classic palette box, which comes in different colors and pat-terns and is designed to hold two, three or four magnetic color trays, has been enlarged for the anni-

versary occasion. The Beauty Box Magnum has room for several extra colors, and boasts a new feature — a special compartment for holding a lipstick. The big box (color items are sold separately) is priced at 11.10 euros, or $14.06, reflecting the 25 percent anniversary discount.

The Beauty Box Magnum and other new products also sport a revamped company logo. Artdeco products are carried in 50 countries, many via alternative distribution ar-rangements, such as through HSN in the U.S.

— Susan Stone

Trade Secret Files Chap. 11Trade Secret Inc. last week filed a voluntary petition for Chapter 11 bankruptcy court protection in Delaware, and plans to sell certain assets to former owner and creditor Regis Corp.

The plan is to sell Trade Secret to Regis as the so-called “stalking horse bidder” for $45 million, which includes the assumption of $13 mil-lion in liabilities, with Regis trans-ferring the interest into a new en-tity associated with Brian Luborsky, chief executive officer, for the pur-pose of operating a scaled-down ver-sion of the firm.

According to bankruptcy court records, Trade Secret, based in Ontario, Canada, operates both beauty and hair care retail sites. Operations are primarily mall-based, although 20 percent of the sites are located in outdoor shop-ping centers. The businesses oper-ate under four trade names: Trade Secret, Beauty Express, BeautyFirst

and PureBeauty.In an affidavit filed last Tuesday

with the Delaware bankruptcy court, Luborsky noted that product revenues represented 87 percent of total revenues and that, for the year ended January 2010, revenues were $220 million. He also noted that the cutback on discretionary spending since 2008, coupled with the firm’s inability to negotiate the closure of unprofitable stores, hurt the busi-nesses’ operations.

The proposed transaction re-quires bankruptcy court approval and is subject to higher offers in a court-approved auction.

Regis sold the money-losing oper-ation to Premier Salons Beauty Inc. in February 2009 for $3, according to Luborsky’s affidavit. Regis, based in Minneapolis, operates salons and hair restoration centers.

— Vicki M. Young

Origins to Exit FranceThe Origins division of Estée Lauder said Tuesday it is closing its two points of distribution in France.

The brand will give up its counter in Le Bon Marché on July 31 and is shutting its freestanding store in the St. Sulpice neighborhood of Paris, according to a spokeswoman. Origins entered France in 2000, but later found itself stymied.

“We couldn’t continue to pro-mote the brand, as emblematic as it is, with distribution reduced to two points of sale,” stated Philippe Warnery, vice president and general manager of Origins and Ojon inter-national. “However, we do not ex-clude the possibility of coming back to France in the future, in so far as we have developed a long-term strategy and adapted to this presti-gious market.”

BEAUTY BEATMIUCCIA PRADA HAS STRUCk A NEW JAzzY chord, as the music genre influenced two key projects — the ad campaign and a new capsule collection of eyewear called Prada Swing Sunglasses by Luxottica.

Both projects will be unveiled globally tonight in New York at Joe’s Pub, one of the city’s better-known jazz clubs. The $245 eyewear will arrive in stores in October and meld the retro femininity of the Fifties with a Nineties’ minimalism. It will be carried in all

Prada stores and in Luxottica’s Sunglass Hut re-tail chain.

The new un-dertaking comes with an artsy perk — a collabora-tion with inter-national comic-book illustrators. Prada has lured a roster of par-ticipants, span-ning well-known comic-book-de-sign schools and independent il-lustrators, who will design their fantasy heroine. The require-

ment? That Prada Swing shades are worn in the strip. Submissions can be made from July 14 through Aug. 31, and the winning heroine will become the protago-nist of a Prada comic.

The black, ivory and tortoise acetate sunglasses with metal logo feature colored lenses.

The new fall campaign was filmed by Steven Meisel at Joe’s Pub. Inside the smoky and ink-blue-lit locale, male and female models dance provocatively, showing off their winter clothes and sunglasses. Done up as a latter-day nightclub singer, model Angela Lindvall per-forms “Fever,” her hair swept up in a beehive bun and her eyes heavily made up. Stills of the video serve as Prada’s fall campaign. “We wanted to give continuity to the essence of the fall collection throughout all the product categories, and we really liked the idea of men and women interacting in a real context,” said Stefano Cantino, group communications director.

— Alessandra Ilari

Artdeco Marks 25 Years With PromotionPrada Hits New Notes

Artdeco color cosmetics.

A Prada Swing ad.

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FASHION SCOOPS

A well-dressed group of Hollywood progeny And up-and-coming actors mixed on the roof of louis Vuitton’s rodeo drive boutique Monday night for the brand’s annual party with Vanity fair, which this year benefited the enviromental charity oceana. There was Lorraine Nicholson (daughter of Jack), Francesca Eastwood (Clint) and Amanda and Brooklyn Sudano (Donna Summer), along with Maggie Grace, Brittany Snow and Colin Egglesfield.

January Jones was host at the event, though she admitted her duties were limited. “There’s not too much involved,” said the actress. “I get reserved seating and I get to borrow an amazing outfit. It’s a no-brainer.”

several guests were taking a break between jobs. “eclipse” star Xavier Samuel is getting ready to shoot “Anonymous,” a

thriller set in the shakespearean era co-starring Vanessa Redgrave and her daughter, Joely Richardson.

And Amber Heard appears opposite Nicolas Cage in “drive Angry 3d.” “you know me, fast cars, big guns and cowboy boots is just icing

on the cake,” Heard said with a shrug.As for Kristen Bell, who will be filming the comedy

“whales” in Alaska this fall: “I hope the transpo involves huskies. I plan to be getting around by dogsled.”

LOUIS-VILLE

See more party images at WWD.com/eyescoop.

s Clockwise from left: January Jones; Brooklyn and Amanda Sudano, and Kristen Bell, all in Louis Vuitton.

s Rashida Jones in Louis Vuitton with mom Peggy Lipton; Brittany Snow in a Tibi top and Plastic Island pants.

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TEXT RODARTE: As part of los Angeles County Museum of Art’s experimental mobile project, “Cell phone stories,” rodarte’s Kate and Laura Mulleavy created five sketches, together titled “lACMA a la Mode,” which were inspired by works in the museum’s permanent collection. The sisters responded to a variety of periods and movements represented in the collection, translating works ranging from pre-Colombian artifacts to midcentury paintings into 21st-century dresses. The sketch shown reworks the Mexican, Mixteca-puebla style piece “Mosaic skull,” made from a human skull encrusted with turquoise, jadeite and shell. “Cell phone stories” also includes an essay by actor Rainn Wilson, and narrative works from artists Steve Fagin, Adrienne Ferrari, Kianga Ford and Rich Bott as well as writer Barry Yourgrau. The project will be transmitted via cell phone text messages (text lACMA to 67553) linking users to Twitter, facebook and other web sites. The project was inspired by the Japanese keitai shosetsu, text-based cell phone narratives known as “thumb novels” that are popular among teenagers.

STELLA’S OLYMPIC TEAM: Stella McCartney is collaborating with Adidas again, this time for the 2012 summer olympics. Adidas, the official sportswear partner of the london 2012 olympic and paralympic games, has selected McCartney as creative director for the uniforms that British athletes will wear. An announcement from Adidas is expected today. McCartney designs the Adidas by stella McCartney line of women’s athletic clothing, and most recently dressed tennis star Caroline Wozniacki for wimbledon. An Adidas spokeswoman said the new partnership between McCartney and the brand would run from now until the 2012 olympics, and would feature four separate collections. The first will bow in september, will be a men’s and women’s lifestyle collection “inspired by Team gB” and will be aimed at nonathletes and fans. It will be sold at Adidas stores in the u.K. The final collection will comprise the uniforms for the British team. “As a British fashion designer, it is an amazing, once-in-a-lifetime opportunity to be creative director of Team gB as the hosting nation of the london 2012 olympic games,” said McCartney.

RODEO DRIVE VISION: Badgley Mischka is beginning to nail down the details of its new two-level, 2,700-square-foot flagship on rodeo drive and little santa Monica Boulevard in Beverly Hills. The look will reflect Badgley Mischka’s retail aesthetic of combining modern and historic elements. Chandeliers, for instance, will be juxtaposed against reclaimed wood floors. The second floor will house the bridal collection, and the first floor will contain an array of merchandise, including the Mark & James contemporary collection, couture, handbags, eyewear, footwear, jewelry, watches, swimwear and fragrance. The store is expected to open this year after Badgley Mischka’s shanghai unit opens at Hong Kong plaza in August. It will take over a space formerly occupied by the boutique Boulmiche, which was famous for being the site where snooty staff snubbed Julia Roberts’ character in the movie “pretty woman.” Boulmiche moved to north Beverly drive.

YOUNG GUNS: “I got told off because I wasn’t voting for anybody at one point. I couldn’t make my mind up,” said Stephen Jones, who was chastised by fellow judges of the dorchester Collection fashion prize, including Giles Deacon, Daphne Guinness, Manolo Blahnik and Yasmin Le Bon, before the semifinalists were announced in london on Monday. Chairman Bronwyn Cosgrave said the panel narrowed down the entrants to five from 69. “All of the judges did their homework and were very passionate about the semifinalists,” she said before reading out the names of Chau Har Lee, Hermione de Paula, Louise Goldin, Mary Katrantzou and Thomas Tait. Indeed, Blahnik could not contain his excitement. “I’ve seen this boy called Tait. He’s so new, so wonderful — things that I’ve never seen before, so very rare. I loved it,” enthused Blahnik. The winner,

to be announced in november, will receive accommodation and an event at a dorchester Collection hotel of his or her choice and 25,000 pounds, or $37,900 at current exchange, toward his or her next collection.

WALK THAT WALK: galeries lafayette is hoping to establish a guinness world record by staging the biggest-ever catwalk show. on sept. 30, the french department store chain will transform Boulevard Haussmann, home to its paris flagship, into a 2-kilometer, or 1.2-mile, catwalk. It hopes a total of 10,000 people will take part in the paris event, a parallel show in Berlin the same day and other fashion shows in its stores across france, as part of a series of events celebrating street fashion scheduled to take place from sept. 8 to oct. 2.

MAD ABOUT BANANA: for the second year, Banana republic is teaming with AMC’s “Mad Men” for the “Mad About style” campaign, which launches in all 400 stores on July 21. The style guide features images of the emmy-winning show’s characters alongside similar looks from the retailer. In addition, “Mad Men” costume designer Janie

Bryant and Banana republic creative director Simon Kneen collaborated on video

blogs posted on AMC’s web site and Banana republic’s facebook page. A Casting Call promotion also offers one shopper a walk-on role in the show. To top it off, the company is sponsoring the show’s

fourth season premiere on July 20 in los Angeles, with an after party at Chateau Marmont, and a private luncheon the next day with Bryant and Kneen at the sunset Tower.

ACTING UP: John Malkovich was in Berlin last week for the first time in a decade to toast the german retail debut of his Technobohemian men’s collection at trendy fashion emporium The Corner. It’s only the fifth door worldwide to carry the specialized men’s wear range, going into its third season for spring. “I’ve done several films here, one with Volker [Schlöndorff],” mused the actor, who was greeted by the celebrated filmmaker and given a signed copy of his autobiography. Malkovich next was headed to saint petersburg, russia, where he is doing the opera “The Infernal Comedy,” which he is co-directing. despite Malkovich’s own admission that “I don’t think it’s the greatest time in this business,” The Corner’s owners said they’re optimistic Technobohemian will appeal to a gentleman interested in making an individual fashion statement.

POPPY’S SWEET TOOTH: Those good Humor-like trucks decorated with images of pink handbags, multicolored clutches, hand-drawn doodles and the Coach logo spotted around new york City are a marketing vehicle — no pun intended — for Coach’s poppy collection. Two trucks, one dispensing ice cream, the other, cookies, can be found outside various Coach stores in Manhattan between noon and 11 p.m. daily. Inspired by the exuberant, floral extravaganza that is poppy, Van

leeuwen ice cream created a flavor called poppy that features morello cherries and Michel Cluizel chocolate. The Treats Truck has its own ode to the playful poppy line: heart-shaped and flower-shaped cookies topped with bright sprinkles. Coach last year grabbed market share by expanding the offering of its lower-price bags in the $200 to $300 range, which includes poppy. The

average price of a poppy bag is $240, compared with $290 for the average Coach bag. The poppy-covered Van leeuwen ice cream truck and Treats Truck will operate through the end of this month.

CFDA IN THE MIX: Intermix is on board as the sole retail partner at the Council of fashion designers of America’s Business services network. To get things rolling, the specialty chain will help champion fashion Targets Breast Cancer, an international awareness initiative. In business for nearly 17 years, Intermix’s new partnership is the first of what is expected to be many strategic alliances. next month, the company will launch a nationwide rebranding effort.

A sketch from Rodarte.

Proffering sweet treats in the name of Poppy.