WWD.COM

By Rosemary Feitelberg

WITH ITS 10TH ANNIVERSARY JUST A FEW months away, Threadless, the Chicago-based crowd-sourced design Web site, has inked a deal with Dell to provide an exclusive collection of artists’ graphic creations for laptops.

Drawing from its base of 80,000 artists and designers, Threadless has put forward 11 de-signs for the new products, which will be sold through Dell Design Studio. More than one mil-lion Threadless community members are said to vote regularly on their favorite design sub-missions, and the most popular selections are then sold on threadless.com. Dell shoppers will choose one of the designs, which will be permanently infused on the cover of a laptop. Design options will be updated two to four times a year.

Threadless vice president of marketing Cam Balzer said the Dell initiative indi-cates the company is moving into a new business phase and now has an expanded palette for artists to sell their art in a new way and to a different audi-ence. He declined to comment on how the brand’s anticipated sales growth from this venture might be used to build the company down the road.

Dell, which also sells Major League Baseball designs, (Product) Red signature artwork and OPI nail-polish-inspired colors through its on-line design studio, is looking for companies that “really resonate with consumers,” according to Rachna Bhasin, the computer maker’s general manager for strategic partnerships and person-alization. She and Balzer declined to comment on projected sales for the new venture, which

will be unveiled today in San Francisco and will be available on the Dell Design Studio Web site starting Thursday. Threadless will plug the part-nership on its Web site, as well as through e-mail and its social media efforts. Dell in turn will sponsor the Threadless Everywhere Tour, which just got under way and will stop in 15 cities in the U.S. and Canada in the next few months. The brand’s road trip in a customized Airstream trailer will wrap up with an anniversary party Oct. 9 in a Chicago nightclub. For the belea-guered Dell, the road trip might be a way to help win back consumer trust after a recent report in The New York Times that unsealed court docu-ments in a three-year-old court case alleging

Dell knowingly sold computers with faulty parts to institutions and

businesses. T h r e a d l e s s

T-shirts will be showcased in

“TechnoCRAFT,” an Yves Behar-curated

exhibition that makes its debut Friday night

at San Francisco’s Yerba Buena Center for the Arts. Puma, Freitag Bags and Colour-in-dress by Berber Soepboer

& Michiel Schuurman are some of the other

apparel-related names fea-tured in the show, which ex-

plores how the boundary between the role of the designer and the consumer is vanishing.

Through a new alliance with Havaianas, Threadless will unveil six limited edition T-shirts and flip-flops designed by its artistic community Thursday night at a Surface maga-zine-sponsored event in New York’s SoHo. Last month, Threadless bought “a significant stake” in Society6, an online artist community spe-cializing in opportunities for them to sell their work. There are no plans to merge the two com-panies at this time.

Lou Doillon

2 WWD, WEDNESDAY, JULY 7, 2010

PARIS — Andrea Perrone has resigned as chief executive officer of Brioni Roman Style SpA, the Italian men’s wear firm said. The announcement confirms a report on WWD.com Tuesday.

In the interim, Brioni general manager Antonio Bianchini will handle day-to-day executive du-ties until a new ceo is named. No other information was available.

Perrone, the 40-year-old grandson of Brioni co-founder Gaetano Savini, was appointed sole ceo last year. Prior to that, he shared the role with Antonella De Simone, who is the granddaughter of co-founder Nazareno Fonticoli.

Perrone is the second ceo to bid adieu to the firm after Umberto Angeloni exited the company in 2006. Brioni bought out Angeloni for an estimated 80 million euros, or $100.3 million at current exchange. Brioni’s controlling families hired BNP Paribas in November 2008 to sell a stake in the company to ease debts and spur growth, only to cancel those plans earlier this year.

— Emilie Marsh

Andrea Perrone Resigns Brioni Post

Threadless in Laptop Tie-in With Dell

By Luisa Zargani

MILAN — The state-appointed administrators of IT Holding SpA have extended the deadline to sub-mit binding offers for the purchase of the Gianfranco Ferré fashion house until Aug. 2.

The offers, which should include business plans to continue the company’s activities, were origi-nally to be presented to commissioners Stanislao Chimenti, Andrea Ciccoli and Roberto Spada no later than July 6. Sources say the deadline for Ferré, controlled by IT Holding, was extended given the interest generated by the publication of sale regulations indicating terms and conditions and published in several newspapers last month. It appears several foreign bidders are looking at the dossier and are asking for additional time.

Binding offers for Italian manufacturing firm Ittierre SpA, also controlled by IT Holding, are also to be submitted no later than Aug. 2. Borletti Group, the department store operator that re-cently eyed investments in Escada and Christian Lacroix, was first said to be looking at Ittierre in January and appears to be still in the running and even considering the Ferré brand. Former bondholders of IT Holding — including Goldman Sachs, J.P. Morgan and Pioneer — are rumored to have joined forces with Borletti Group. There also is speculation that Italian manufacturer Albisetti is interested in Ittierre. Albisetti holds innerwear and beachwear licenses for brands in-cluding Jil Sander, John Galliano and Roberto Cavalli — the latter two a link with Ittierre, which produces apparel collections Just Cavalli and Galliano, in addition to C’N’C Costume National, Ermanno Ermanno Scervino, GF Ferré and Extè.

Last month, the administrators selected Italian retail developer Evante as the new owner of cashmere knitwear firm Malo, controlled by IT Holding, pending the approval of the ministry of economic development. Evante is a general contractor — a private company based in Arezzo, Italy — that develops luxury stores. Among its clients are brands such as Louis Vuitton and Prada and, most recently, Abercrombie & Fitch, which opened its first Italian flagship in Milan in October.

IT Holding has been in government-backed bankruptcy protection since February 2009.

Bidding for Gianfranco Ferré Extended

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. 4. 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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4FASHIONKarl Lagerfeld’s sunset Chanel couture show on Tuesday roared with power, bravado and great clothes, while Armani Privé and Givenchy offered their collections.

GENERALAs the thermometer topped 100 degrees in Manhattan and elsewhere, retail executives said traffic to their air-conditioned stores and malls was heavier than normal.Although analysts preparing for Thursday’s reports on June same-store sales expect positive top-line numbers, several factors have a growing number of them concerned about the second quarter.Bulgari will introduce a silver and ceramic ring in October as part of the company’s charity campaign Rewrite the Future with Save the Children.

EYESummer l ovin’ was in the air and blasting from the speakers at Katie Lee’s Sagaponack beach house Friday night, where The Cinema Society, Dior Beauty and Moët & Chandon hosted an open-air screening of “Grease Sing-A-Long.”

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“The consumer hangover set in as a lack of fashion

and full wardrobes at home kept consumers from spending.” — Deborah Weinswig, Citi broadlines analyst,

on projected June same-store sales. Page 10.

!

WWDWEDNESDAYSportswear

• Ongoing coverage of couture week in Paris, including

reviews, full runs of show, backstage and front-row

coverage, and Fashion Scoops• Back in Time: Publishing

powerhouse Nan Talese in 1969 • Additional images from

the Cinema Society’s open-air screening of “Grease Sing-a-Long”

• From WWD EyeScoop: Fashion Rehab — Royal EditionPH

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.COMWWD

CLARIFICATIONJesse Williams is not the new face of the Macy’s Alfani brand, but will appear in a special GQ supplement promoting the label. Due to misinformation from Macy’s, this was incorrect in a story on page 11, Thursday.

QUOTEDAILY

Threadless will create laptops with Dell featuring artists’ designs.

A look by Armani Privé.

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4 WWD, WEDNESDAY, JULY 7, 2010

Chanel: The house that roars? As if anyone needs reminding. Yet remind Karl Lagerfeld did, in a sunset Chanel couture show on Tuesday that roared with power, bravado and great clothes.

And, holding court under the dome of the Grand Palais, a remarkable, 8-ton, 40-foot-tall golden lion, its paw perched on an enormous pearl. Various members of Lagerfeld’s Rue Cambon encampment explained the beastly context: “Coco was a Leo, you know.” Yeah, right. Karl might have been offering astrological homage, but more likely, he just felt like ordering up a 40-foot-tall golden lion with its paw on a pearl. Because he can. And because he knows that, even dwarfed by such majesty, his clothes will not be ignored.

That reality proved especially interesting this season, a lineup that was all about control and scaled-down silhouettes. In fact, Lagerfeld banished gowns to the realm of the old-fashioned, at least until next season. “In the Twenties they wore short for evening, as well,” he offered.

But fi rst, the day clothes. Chanel’s got bona fi de paying customers, and Lagerfeld’s not going to disappoint them at any time of day. Here, he presented comely tweeds in new proportions that start with a small, short jacket with a three-quarter or shorter sleeve, the better to show off the collection’s lone accessory — bracelets of intense pilings of chains, pearls and stones. Sometimes the jacket was the real thing, and sometimes faux, attached to a longer jacket, coat or dress beneath. Either way, it created a multitiered line. It looked newest, and most challenging, over a loosely peplumed blouse and swingy midcalf skirt, diffi cult for all but the slimmest of ladies. Women less slightly endowed will prefer leaner shapes, some trimmed in fur.

At night, Lagerfeld’s refusal to go long did not get in diversity’s way; he offered looks as different as little cocktail numbers and romantic trapezes that reminded some in the audience of his bohemian days at Chloé. Yet the real wonder was in the richness of surface motifs, from Indian- and Baroque-style embroideries and tapestries to an amazing dress crafted entirely of pearls.

As for the newest haute Chanel footwear, these boots, lavishly embellished to match every look, were made for wowing.

A Lion in Winter (Couture)

WWD.COM5WWD, WEDNESDAY, JULY 7, 2010

LION’S PRIDE: Spoiler alert for fans of “Gossip Girl:” The television series started fi lming the fi rst two episodes of season four in Paris on Tuesday, and Blake Lively — aka Serena van der Woodsen — let slip a few plot hints at the Chanel couture show. “It involves hidden identities and Chuck and Blair bumping into each other, and just love affairs and beautiful clothes,” she said. Down the row, co-star Leighton Meester said she had just taken a break from her role as queen bee Blair Waldorf by playing a character who is “sort of dorky and uptight and a little bit insecure” in the teen fl ick “Monte Carlo,” co-starring Selena Gomez and Katie Cassidy. Meester proved she is a good sport by chatting amicably with Clémence Poésy, who has a guest spot on “Gossip Girl” playing her French love rival. Most guests found there was drama enough on the catwalk, which was dominated by a colossal 40-foot-tall gold lion. Milla Jovovich gasped at the “unbelievable” set, while Jessica Alba walked around taking souvenir snaps. “I feel like I’m in ‘Alice in Wonderland,’” exclaimed Anna Mouglalis. “I saw the original miniature version in Coco Chanel’s apartment, but this is massive.” Speaking of bombastic projects, architect Peter Marino said he was working on the design of a large Chanel store slated to open in Beirut at the end of the year. “That’s where it’s all happening right now,” he said. Dressed in a powder pink tweed suit, Japanese actress Rinko Kikuchi said she was in Paris to pick some outfi ts to wear to the Venice Film Festival in September. Meanwhile, Elisa Sednaoui has a roll of ad campaigns coming out in September, including one for Diane von Furstenberg. Gaia Repossi said she was juggling fi ve jewelry projects, due to be unveiled in September, but would still be taking a long summer vacation. “I am spending the entire month of August in Sri Lanka practicing yoga in an ecological retreat in the jungle,” she said.

CATCHING BREATH: Daphne Guinness appeared to have diffi culty breathing in her corseted dress at the Armani Privé show on Tuesday. The heiress said she had just completed a glove sculpture made from gold and several thousand diamonds, which she expects to present in a gallery soon. Socialite Olivia Palermo, who recently launched a necklace collection for Roberta Freymann, said she’s mulling a switch to designing full-time after completing the next season of the MTV-scripted reality show “The City,” which will likely be her last. “I’m just kind of playing with the idea, seeing what I like and what I don’t like,” said Palermo, attending the show with her boyfriend, model Johannes Huebl. Bond girl Gemma Arterton is taking time off in order to “have a little bit of a life” before what promises to be a busy 12 months: After starring in the Henrik Ibsen play “The Master Builder” at the end of the year, she is due to fi lm three movies. Claudia Cardinale recently wrapped two movies with fi rst-time directors in Tunisia and Turkey, and is off to shoot in New York in September on another debut feature. Amber Le Bon, back from a two-month modeling stint in Hong Kong, said her schedule left little room for extra-curricular projects. “Literally, I can’t plan tomorrow, let alone next month or next week,” said the daughter of Duran Duran front man Simon Le Bon and model Yasmin Le Bon. “I do what I’m told.” Honestly, the rock progeny of today.

SUN, SWIM AND THE STANDARD: Quiksilver and The Standard Hotels are adding a sequel to last year’s collaboration of retro boardshorts, which were sold through poolside vending machines at The Standard’s New York and Los Angeles outposts. This time around, the hotel has added similar machines to its Hollywood and Miami Beach locations, and upped the convenience factor with a miscellany of fun-in-the-sun products. In addition to four new boardshort styles, each inspired by the four hotels, there will be sunglasses, bikinis and Shiseido sun care products. And as with last summer, artist Cheryl Dunn has created a video, shot in Costa Rica, that will play on the credit card-friendly machines. CLASS RULES: Leighton Meester, who attended the Paris launch of Derek Blasberg’s book “Classy: Exceptional Advice for the Extremely

Modern Lady” at Colette Monday night, dispensed some tips of her own. “Being classy is not taking yourself too seriously and combining that with a sense of style and a sense of humor,” offered Meester. “I may nick a copy on my way out,” said the effortlessly chic Lou Doillon, who disclosed that she just fi lmed a cameo spot on “Gossip Girl.” “I love using my brain,” related Lily Cole, who just wound up her second year at Cambridge, where she is pursuing an art history degree. She’s also working with pals on The North Circular, the British ethical knitwear collection. Jason Wu, in town showing his resort collection, was among the partygoers. Accompanied by her husband, fi lm director Paul W.S. Anderson, Milla Jovovich said she had put the fi nal touches on her capsule collection for Japanese label iCB. Jovovich said she is also working on a string of fi lms, including the “The Three Musketeers,” in which she stars as Milady de Winter. “I’ve put looks [from the fi lm] on my Twitter page as a test,” said Jovovich, holding two-year-old daughter Ever Anderson, who was dressed in an Au Nain Blue princess gown.

Meanwhile, in the Palais Royal, more fashion parties were hopping, including a Masters of Linen event. It featured larger-than-life, quirky scarecrows by the likes of Maison Martin Margiela, Lanvin, Thierry Mugler and Stella Cadente. Claude Montana said he’s readying for the launch of his book, “Montana,” in October. “I would love to do something in fashion again,” he mused, adding that would most probably involve leather. Across the picturesque square, Didier Ludot hosted an event with French fashion house Carven. “We’ve reedited a Carven dress from 1956,” said Ludot, explaining only 40 co-branded dresses would be commercialized.

FASHION SCOOPS

Rinko Kikuchi

Anna Mouglalis

Blake Lively

Milla Jovovich Leighton Meester

Hugh Dancy and Claire Danes at Armani Privé.

Daphne Guinness

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6 WWD, WEDNESDAY, JULY 7, 2010

Armani Privé: On one hand, who doesn’t applaud a designer addressing the real-life needs of his clients, even at the haute pinnacle of the business? Especially when, decades ago, that designer revolutionized the way women dressed by day with his proposal of chic practicality, and more recently has set the standard for red-carpet glamour. On the other hand, an in-depth exploration of beige — make that amber — risks looking about as exciting as it sounds.

Such was the push-pull of the Armani Privé collection Giorgio Armani showed on Tuesday. While he negotiated the challenge with a certain swagger, at times one wished for the adrenaline surge of a jolt of navy.

Armani opened with Carmen Kass, whose elegant presence flagged the designer’s dedication to a womanly customer. In her softly cut crepe suit, its peplum accentuating the curve of her hip as her matching coat flew open to soigné effect, Kass looked every inch the high-powered, high-glam

executive. This was the entrée to a major message on daywear. Here, Armani showed a preference for sensual, often short, jackets, diversifying the cuts with a tucked neckline or his signature ruffled side closure. He paired these mostly with lean skirts, some with trumpet flares, although he showed trousers as well. He also offered attractive dresses with various draped details. Throughout, Armani veered to the far chic side of trickery, save for one outfit, a flap-fronted jumpsuit deep in the throes of identity crisis: Am I pants or a dress? The collection’s major decorative leitmotif — large, graphic, single-button closures and brooches in amber, bone and wood — proved more successful.

Evening, too, was all about amber, with a range from so plain it looked like a jewelry dress to full-body glitz. Individually, they were lovely enough. But imagine walking into a grand fete to find every woman there in some (mostly strapless) variation from beige to orangey brown. After a while, you’d phase out.

For full runs of collections and up-to-the- minute news, see WWD.com.

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Armani Privé

WWD.COM7WWD, WEDNESDAY, JULY 7, 2010

Couture week is when Roger Vivier usually trots out the house’s fanciest horn-of-plenty accessories, brimming with precious trims. But this season, the company is changing tactics by launching Rendez-Vous, a limited edition concept designed to bridge the gap between the former couture collection and the house’s main line — all without skimping on elegance or innovation.

In the mood for a fresher, lighter, more contemporary direction, creative director Bruno Frisoni said he liked the idea of industrializing atelier craftsmanship. Gluing a leaf of teak to leather, for instance, creates a new crafty material for the house’s tube clutch, as do horn sequins on chain mail and coils of resin-coated white cord for other Vivier bag classics. The iconic Vivier Virgule shoe adopts new wavy lines, and is nicknamed the New Wave. For one summery straw version, Frisoni tapped a local milliner to apply the same technique used for making straw hats, in which ribbons of the material are stitched to create grooves. Plain double organza served as the canvas for a pretty blush hand-painted finish on another heel inspired by German artist Gotthard Graubner. The Rendez-Vous collection will tour a number of Roger Vivier stores worldwide starting in January. The number of editions for each design is yet to be determined.

Givenchy: Death, religion, sensuality. Provocative topics for cocktail conversation — and for fashion, as well. As starting points for Givenchy’s Riccardo Tisci, the themes made for an arresting, finely honed collection.

Tisci’s three-part motif stemmed from what the designer called the three obsessions of Frida Kahlo (whose 103rd birthday was Tuesday, for those into such coincidences). The artist’s fascination with the Mexican Day of the Dead inspired the skeletal lace tracings that recurred throughout the tight, 10-look lineup, delivering ample bravura.

Tisci showed in an installation in a lovely gilded apartment on Place Vendôme, the better for up-close viewing of haute intricacies, and for keeping production costs in check, even if that was not a stated goal of the house. His work is indeed complicated and was beautifully rendered: One dress took 1,600 hours to complete. A coat crafted from countless reed-thin strips of leather made a dramatic companion to a hand-painted silk tulle gown finished with a flurry of dégradé ostrich feathers. Other pieces came exquisitely jeweled or fringed, some in direct response to client requests. All looked drop-dead sexy — from a blush tulle jumpsuit (many looks featured silk knit or tulle bodysuits as underpinnings) to a corseted, lavishly embellished gold gown.

Diverse it wasn’t. Yet up close, Tisci’s decorative inventions were on bold display. And possessed of major curvature and sparkle, virtually every look could make a beeline for the red carpet, where it would shine with confident glamour.

Roger Vivier’s straw New Wave

heel from its Rendez-Vous line.

Roger Vivier’s horn-sequinned Miss Viv bag from its Rendez-Vous line.

Riding The

Wave

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Givenchy

Givenchy

Givenchy

Givenchy

Givenchy

Givenchy

8 WWD, WEDNESDAY, JULY 7, 2010

Talk about a hot town. As the thermometer hit a scorching triple digits on Tuesday, Manhattan women dressed the part —

with plenty of short shorts, breezy dresses, parasols and Panama hats. Also taking in the record-breaking heat was Queen Elizabeth II, who worked her own straw

topper and floral frock in a New York trip, her first since 1976.

Burn Notice

See more images at wwd.com

The Queen, wearing

an Angela Kelly dress,

jacket and hat, entering the U.N.

The Queen, wearing

an Angela Kelly dress,

jacket and hat, entering the U.N.

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Continued from page oneOver the weekend, businesses in the eastern two-thirds of the U.S.

experienced double-digit increases of seasonal purchases compared to the coldest 2009 period in a decade, according to Planalytics, which analyzes and publishes the weather’s impact on retail. While consum-ers on the West Coast were still waiting for summer to start and hold-ing off on seasonal purchases, other shoppers were able to think about fall wardrobes and even boots — despite the heat.

Retailers said that the gain in traffic and sales will likely last as long as the heat wave — a much-needed boost as consumers’ reluc-tance to spend increases along with unemployment and fears of a sec-ond recession. Cold water is likely to be splashed on retailers’ recent good mood on Thursday when stores report comparable-store sales that, while expected to show growth, also will stir concerns over mar-gins and rising inventories going into the key back-to-school season.

“We had high double-digit increases,” said Susan Davidson, presi-dent and chief executive officer of Scoop. “East Hampton was off the charts. They’re buying fall early, driven by designers like Azzedine Alaïa, Missoni, Michael Kors, Phillip Lim and Marc Jacobs. We’re sell-ing Chloé shoes and boots. Also, swimwear, shorts and little dresses.” She said business was “off to a good start” on Tuesday.

Mike McAvinue, general man-ager of the Mall at Short Hills in New Jersey, attributed a 10 per-cent to 15 percent bump in week-end traffic to the heat. And the uptick continued on Tuesday. “It’s very busy,” he said. “Not as strong as [Sunday and Monday] but cer-tainly stronger than our average. It’s maybe 4 percent or 5 percent ahead. It’s definitely the heat.”

At The Shops at Columbus Circle, David Froelke, se-

nior vice president of retail and general manager of Related Urban Management Co., said Solstice was busy all weekend, while “Esprit was doing very well with summerwear. J. Crew did very well with sum-merwear and had some sales [going] on. Eileen Fisher reported a good weekend.” Froelke said Tuesday trend was “very strong. Traffic ap-pears heavier compared to a normal summer Tuesday. I would antici-pate this would continue through the duration of the heat wave.”

“We had an extremely outrageous day on July 5th,” said a spokes-woman for Westfield Garden State Plaza in Paramus, N.J. The mall is closed on Sundays due to Bergen County’s Blue Laws. “We were mobbed.” The center’s anchors and specialty retailers offered promo-tions and sales for the holiday weekend, with the top-selling items, by consensus: swimwear and ladies’ shoes.

Traffic over the holiday weekend was “slightly above normal” at Stamford Town Center in Stamford, Conn., said Mike McAndrews, gen-eral manager. “We experienced an influx of people looking for a place to cool off,” he said.

At the Americana Manhasset in Manhasset, N.Y., only a number of stores were open on July 4th. “While that day was relatively quiet, the rest of the weekend resulted in some strong sales,” said a spokeswoman. “Some of that was due to customers shopping for summer sale merchandise, but some was also due to customers excited about new fall merchandise.”

Caryn Hirshleifer, who oversees legal, marketing, planning and public relations at Hirshleifers at Americana Manhasset, said Friday’s sales were particularly strong, but throughout the weekend more than 85 percent of sales were done at full price. “In terms of pre-fall mer-chandise, the new Chanel accessories were very popular,” she said. “Other strong brands included Balenciaga, Brunello Cucinelli, Loree Rodkin, Proenza Schouler, Alexander McQueen and Givenchy. Fall shoes sold well, including Miu Miu, Christian Louboutin and Sergio Rossi. We can tell that it’s going to be a very strong boot season.”

By David Moin

NEW YORK — Abercrombie & Fitch Co. is still investigating its bedbug problem in Manhattan, but hoping to reopen the Abercrombie & Fitch unit in the South Street Seaport on Thursday.

The company’s Hollister flagship on Broadway and Houston Street in SoHo reopened Saturday after the infestation was exterminated, and on Tuesday saw good traffic despite the scorching heat (and being temporarily tainted), with Broadway busy midday. Hollister male mod-els in swim trunks at the entrance drew attention to the store, and air-conditioning added to the appeal. Inside, several shoppers sipped iced coffees as traffic seemed to build. There was one worker vacuuming, but when asked if she was chasing the bugs, an associate assured: “No, that’s for the rugs — to get the dust off.”

The problem appears to be isolated, with neighboring businesses including Ann Taylor in the Seaport and 24-Hour Fitness center situ-ated above Hollister, both reporting no sightings or bitings. A&F’s Fifth Avenue store is also clean.

Bed bugs have reached epidemic proportions in New York. Most cases have been reported by residents, though it’s possible other busi-nesses are infested.

“We take this problem very seriously,” said an A&F spokeswoman. One source speculated the bugs could have been inside some of the store’s antique furniture, noting the tiny rust-colored, blood sucking bugs are typically found in mattresses. Or they could have come from clothing a customer returned or clothing shipped to the store or from some other Manhattan location.

“This whole thing doesn’t make sense,” said the source. “It had to come from somewhere.”

SUMMER LOVIN’ WAS IN THE AIR AND BLASTING from the speakers at Katie Lee’s Sagaponack beach house Friday night, where The Cinema Society, Dior Beauty and Moët & Chandon hosted an open-air screening of “Grease Sing-A-Long,” the rerelease of the 1978 classic, now with karaoke-style subtitles. In her best “Bad Sandy” ensemble (the dress code was “Rydell High 1950s”), Lee passed out preshow tequila shots and chatted with guests such as Helen Lee Schifter, Gayle King, Brad Goreski, Bettina Zilkha, John Leguizamo, Nanette Lepore and Jennifer Creel. After dinner, everyone claimed some space on the lawn for the main event. Dylan Lauren and Nacho and Delfina Figueras snacked on popcorn in between choruses of “Greased Lightnin’,” while Donna Karan and rumored beau JJ Biasucci snuck off to take a walk on the beach — ah, those summer nights.

RYDELL HIGHS

See more images at wwd.com/eyescoop.

! Katie Lee in Dior; Dylan Lauren in a vintage R.L. jacket; Nora Zehetner in Celia Birtwell for Topshop.

! JJ Biasucci and Donna Karan

! Nacho and Delfina Figueras

A&F Bedbug Problem Easing

Cool Move: Heat Boosts Retail

“Traffic appears heavier compared to a normal summer Tuesday. ” — David Froelke, Related Urban

Management Co.

WWD.COMWWD, WEDNESDAY, JULY 7, 201010

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

7.77 7.20 Safilo * (SFL:MI) - 243253 7.60 +6.74

355.30 343.00 Marks & Spencer * (MKS:L) 10.5 15755963 352.70 +5.88

6.96 6.61 Bebe (BEBE) - 1925473 6.68 +5.53

34.14 33.15 Carrefour * (CA:PA) 70.6 3725826 33.87 +5.38

16.06 15.45 Express (EXPR) - 491553 15.96 +4.72

38.75 37.10 Richemont * (CFR:VX) 26.6 2643421 38.64 +4.57

769.00 747.50 Burberry * (BRBY:L) 40.9 1317564 769.00 +3.99

0.79 0.75 Frederick’s of Hollywood (FOH) - 3400 0.79 +3.88

53.68 51.27 Tod’s * (TOD:MI) 19.1 39007 53.54 +3.76

49.00 47.60 Inditex * (ITX:MC) 21.3 1291008 48.69 +3.70

DAILY COMPANIES P/E VOLUME AMT

HIGH LOW LAST %CHANGE

By Alexandra Steigrad

ARE THE GOOD TIMES GONE ALREADY at retail?

Analysts preparing for Thursday’s reports on June comparable-store sales expect the top-line numbers to show growth, but rising inventories at a number of department and specialty stores, along with other pressures on expenses, has them concerned about second-quarter margins and profits. Even more ominously, several pre-dict the coming back-to-school season — and up-beat expectations for the second half — are at risk from an inventory overhang. The sec-ond quarter ends later this month.

A weak second-half outlook from Citi broadlines analyst Deborah Weinswig contributed to a 2.09 point, or 0.6 percent, decline in the S&P Retail Index, to 383.67 following a more than 7-point gain in early morning trading. The Dow Jones Industrial Average broke a seven-day losing streak with a 0.6 percent advance to 9,743.62.

Weinswig said she feared that “invento-ries could be slightly above plan,” coming off of “tepid sales trends in May and June.” This could prompt “unplanned promotions” as stores push to clear merchandise in antici-pation of the arrival of b-t-s inventories later this month and in August.

“The consumer hangover set in as a lack of fash-ion and full wardrobes at home kept consumers from spending,” Weinswig said. “In addition, the expiration of extended unemployment benefits on June 2 likely had a negative impact on sales.”

She reduced her June comp estimates for J.C. Penney Co. Inc. to between 2 percent and 4 percent, down from between 4 percent and 6 percent. She also lowered Nordstrom Inc.’s estimate to a range of 7 percent to 9 percent, from 8 percent to 10 percent, and she trimmed Macy’s Inc.’s comp to between 4 percent and 6 percent, from 5 percent and 7 percent.

“June started strong given the Memorial Day shift and more seasonal weather, not to mention easier [year-ago comparisons],” said Weeden & Co. analyst Amy Noblin. “We believe the trend soft-ened midmonth but picked up towards the end of the month with more aggressive promotions.

“While June was better sequentially,” she continued, “we don’t believe it was strong enough to ease mounting fears given tougher second-half [comparisons], rising inventories, expenses and sourcing costs — this on top of the global macro concerns.”

Gross margins, a strong point for many stores during the downturn, will likely be pressured as many retailers during the month increased pro-motions to clear out “elevated inventory,” she

said, mentioning American Eagle Outfitters Inc., Coldwater Creek Inc. and Gap Inc.

Based on analysts’ best guesses, Thomson Reuters estimated that June comps rose an aver-age of 3.2 percent, versus the 4.9 percent decline of June 2009. Department stores are expected to average 5 percent increases, followed by gains of 3.5 percent for discounters, 3.4 percent for special-ty apparel stores and 2.5 percent for teen retailers.

Barclays Capital hardlines analyst Robert Drbul was more upbeat, saying that, at least among department stores and discounters, “in-

ventory levels remain healthy heading into the July clearance month ahead of the important back-to-school season.”

Brean Murray, Carret & Co. analyst Eric Beder singled out American Eagle Outfitters Inc., where, he said, “ever-escalating discount-ing…did not clear out inventory until the end of the selling period and should not save the quarter or the month. We believe the company remains in material risk for misses continu-ing into the third quarter,” he said, adding that rival Abercrombie & Fitch Co. was “also aggres-sive in clearing out inventory overhang.”

Beder noted that while the preppy teen re-tailer likely succeeded, its second-quarter mar-gins “will be under severe pressure.”

Nonetheless, the upcoming b-t-s season should breathe life into the space, said RBC Capital Markets analyst Howard Tubin, who expects ac-tivity to pick up next month.

Despite expectations of a so-so June, value destinations and trend-right merchants such as Aéropostale Inc., Limited Brands Inc., The TJX Cos. Inc. and Ross Stores Inc. are expected to continue to benefit, analysts said.

Earlier in the day, markets in Europe and Asia advanced, led by the FTSE 100’s 2.9 per-cent increase, to 4,965.00, gain in London and the SSE Composite Index’s 1.9 percent gain, to 2,409.42, in Shanghai.

19.60 16.72 Perry Ellis (PERY) 14.0 200008 16.85 -10.61

4.22 3.69 Quiksilver (ZQK) - 2183291 3.70 -8.64

3.32 2.95 Casual Male (CMRG) 14.0 318649 2.96 -7.79

1.79 1.60 American Apparel (APP) 11.5 429367 1.60 -7.51

5.77 5.11 Glimcher (GRT) - 1131824 5.13 -7.23

11.71 10.52 K-Swiss (KSWS) - 326869 10.60 -6.77

12.21 10.87 Penn Real Estate (PEI) - 881489 10.91 -6.35

9.35 8.48 Bon-Ton (BONT) 8.2 277993 8.54 -6.15

48.50 43.89 Deckers Outdoor (DECK) 45.6 1723310 44.43 -6.00

15.54 14.17 Jones Apparel (JNY) - 2033374 14.27 -5.93

10 WORST PERFORMERS 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.

Analysts Wary About 2nd Half Bebe to Shutter PH8 Concept

L’Occitane Sales Rise 13.9% for Year

10 BEST PERFORMERS

By Arnold J. Karr

BEBE STORES INC. SAID TUESDAY IT WILL END ITS FAILED PH8 experiment and either close the format’s 48 stores or convert them to the more promising 2b bebe concept.

PH8’s predecessor division, Bebe Sport, was founded in November 2002 during Gregory Scott’s tenure as chief executive officer, which ended in January 2009. It was renamed and redirected toward active and streetwear a year ago.

Closures and conversions are expected to begin shortly, with all stores either closed or converted by the end of Bebe’s 2011 fiscal year next July. Pretax costs are expected to total about $17 million, with $3 million in noncash charges for asset writedowns and inventory markdowns incurred during the just-concluded fourth quarter of Bebe’s 2010 fiscal year and the remaining $14 million in cash charges, covering lease liabilities and possible salary expenses, taken as the stores close. The company said it made the decision based on the division’s aftertax loss of $10 million dur-ing fiscal 2010, excluding impairment charges associated with the stores.

Bebe said comparable-store sales for the fourth quarter would come in at the low end of earlier guidance of a midsingle-digit decrease to a midsingle-digit increase. The company also said it remained “comfort-able” with fourth-quarter earnings guidance, issued with third-quarter results on May 6, of a range from a loss of 2 cents a diluted share to a profit of 4 cents. The current analyst consensus estimate is for a profit of 1 cent a share. Same-store sales results for the quarter are expected on Thursday, with full results for the fourth quarter and fiscal year due on Aug. 26.

In a research note on the move, Brean Murray, Carret & Co. analyst Eric Beder said management had “mercifully ended the dismal PH8 con-cept.…The 48-unit chain had continued to founder, even under the aegis of founder Manny Mashouf; we believe it also was a material drag on management time when the focus needed to be turning around the core Bebe chain the fledgling 2b bebe units.”

Beder continues to rate the stock “buy” with an $11 target price.Separately Tuesday, the company said it will pay a special onetime

cash dividend of $1 a share on July 30 to shareholders of record July 21. Shares rose 35 cents, or 5.5 percent, to $6.68.

LONDON — Strong performances in Japan, Hong Kong, the U.K., Brazil, China and Russia helped L’Occitane register a 13.9 percent sales spike in its fiscal year ended March 31.

The French natural beauty company, which listed on Hong Kong’s stock exchange in May, generated revenues of 612.2 million euros, or $865.5 mil-lion at average exchange, in the 12-month period. Profits attributed to equity holders increased 39.8 percent on-year to 81.6 million euros, or $115.4 mil-

lion. It’s a number that’s 10.6 percent higher than the estimates released at

the time of its initial public offering, according to the company. Operating profits gained 36.9 percent to 110.2 million euros, or $155.8 million.

“Despite a challenging business environment, we managed to deliver an encouraging set of results for the first time as a listed company,” stated Reinold Geiger, chairman and chief executive officer of L’Occitane. “This demonstrates the company’s strong brand equity and sound planning and ex-ecution capability driven by a clear principle for pursuing profitable growth.”

The company said it plans to increase its retail store count internationally.— Brid Costello

BEAUTY BEAT

Citi trimmed its June estimate for J.C. Penney.

WWD.COMWWD, WEDNESDAY, JULY 7, 2010 11

By Luisa Zargani

MILAN — Bulgari will introduce a silver and ceramic ring in October as part of the company’s charity campaign Rewrite the Future with Save the Children.

For 2010 and 2011, the Italian jew-eler pledged 6 million euros, or $7.5 million at current exchange rates, to support quality education for chil-dren most in need globally.

Bulgari launched the campaign in 2008, as the Rome-based company cel-ebrated its 125th anniversary. Last year, Bulgari raised more than $9 million to improve the quality of education for over 10 million children worldwide. Bulgari said it intends to continue the partner-ship with Save the Children to support projects such as teacher training and an art education and therapy program.

The new ring emulates the design of the B.Zero 1 jewelry line, and is the sec-ond one-of-a-kind design created to benefit Save the Children, following the introduc-tion of a silver ring in 2009 that paid hom-age to the silversmith origins of the found-er of the company, Sotirio Bulgari. The ring will feature the Save the Children logo engraved on the inside and will be available from fall through 2011 in Bulgari stores worldwide, select department stores and on the brand’s U.S. Web site. The ring will be priced at $370, of which $75 will be donated to Save the Children.

Bulgari also plans to hold special events in Los Angeles in October and Rome in November, followed by happen-

ings in Shanghai and Tokyo to raise ad-ditional funds.

Starting this month and throughout 2011, photographer Fabrizio Ferri will shoot ce-lebrities including Sting, Ben Stiller, Willem Dafoe, Terrence Howard, Ronaldinho, Jessica Biel, Olivia Wilde, Jason Lewis, Valeria Golino, Isabella Rossellini and Debra Messing wearing the ring. Sting, Stiller, Golino and Dafoe previously helped support the cause with Julianne Moore, Benicio Del Toro and Andy Garcia.

Francesco Trapani, chief executive of-ficer of Bulgari, said he visited Haiti in April and witnessed the damage caused by the earthquake. The executive said Bulgari is focusing more resources on Haiti, while also supporting programs in the U.S. and at least eight other countries.

LEIBOVITZ SHOOTS HICKEY: Hickey Freeman has undergone a design makeover this year courtesy of HMX Group president and chief creative officer Joseph Abboud — and now the 111-year-old men’s brand has tapped Annie Leibovitz to shoot its new fall advertising campaign. The images were shot in Los Angeles and feature a buzzed-about actor that Hickey Freeman is keeping under wraps until the ads are unveiled at an event on July 18 at its new Manhattan headquarters. “Hickey Freeman is an iconic American brand and we needed someone as iconic as Annie to shoot this,” said Abboud of the campaign, which was overseen by adman David Lipman. The print ads will break in September issues and run this fall in titles including Vanity Fair, GQ, Details, Esquire’s Big Black Book, Interview, V Man and Menswear.

While Leibovitz is best known for her high-profile work for Vogue, Vanity Fair and Louis Vuitton, she has branched out of late to shoot Britney Spears for a spring 2010 Candie’s ad as well as the new Jones New York campaign.

HMX Group is the new corporate entity of the former bankrupt Hartmarx Corp., which was purchased last summer by SKNL North America and Emerisque Brands for $128.4 million. — David Lipke

A DIFFERENT TRIP: Travel + Leisure is ready for a change of scenery. After a decade of the same look, the magazine will unveil a “refreshed” design with the August issue. The most visible change is a larger logo (hey, readers get older and their eyesight isn’t what it used to be). “We’ve had a new creative director [Bernard Scharf] since September and it was time to reimagine the look,” said editor in chief Nancy Novogrod. “The new logo is bolder and more playful.” The majority of the magazine’s monthly copies are delivered to subscribers, but the updated logo could help at the newsstand — and T+L could use it. According to the Audit Bureau of Circulations, single-copy sales fell 24 percent during the second half of last year, to 25,644 copies. Inside the magazine, Novogrod has kept the same basic structure but played with the material, adding sidebars and altering font types. “Everything is more in your face,” she said, adding changes also are coming to the Web site. On the ad front, T+L has reported momentum in the May, June, July and August issues, with each posting an increase in paging versus the disaster movie that was the magazine world in 2009. A spokeswoman said the August issue is up 29 percent. Meanwhile, the travel title’s first iPad app will be out in November. — Amy Wicks

MEMO PAD Bulgari to Support Save the Children

The Bulgari ring for Save the Children.

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