ELIE TAHARI’S RETAIL THERAPY/4 FORTUNOFF ON ...ELIE TAHARI’S RETAIL THERAPY/4 FORTUNOFF ON THE MOVE/5 Women’s Wear Daily † The Retailers’ Daily Newspaper † August 10, 2007

ELIE TAHARI’S RETAIL THERAPY/4 FORTUNOFF ON THE MOVE/5Women’s Wear Daily • The Retailers’ Daily Newspaper • August 10, 2007 • $2.00

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Forever YoungWith its new Beauté Initiale skin

care line, its fi rst designed for

twenty- and thirtysomethings,

Chanel aims to prevent skin

damage before it starts by

harnessing the power of a high-

octane antioxidant. The collection

will bow in September and could

do $10 million at retail in its fi rst

year. For more, see page 6.

WWDFRIDAYBeauty

By Vicki M. Young

Let the Barneys expansion begin.Dubai-based investment fund

Istithmar finally won the bidding for the specialty retailer on Thursday after rival Fast Retailing Co. Ltd. of Japan decided to

drop out. As reported, Istithmar will pay Jones Apparel Group, Barneys’ parent, $942.3 million in the all-cash deal. According to Jones, the deal is expected to close in the third quarter of this year.

Now the fund faces the task

of earning its investment back — and it already has indicated that will be via store openings mainly in the U.S. and, perhaps eventually, overseas.

“We are excited to acquire

Barneys’ New Future: Istithmar Wins Chain and Rollout Seen

See Istithmar, Page 13

WWDFRIDAYBeauty

GENERALIstithmar has won the bidding for Barneys New York following the deci-sion Thursday by Fast Retailing Co. Ltd. of Japan to drop out.

Wilsons Leather hired investment banking fi rm Financo Inc., design fi rm IDEO and Telsey Advisory Group to formulate a future business strategy.

Adampluseve is changing its name to Adam Adam Lippes, with a new logo and Web site called shopadam.com, all set to launch in October.

Fortunoff is relocating from Fifth Avenue to West 57th Street in a move to modernize its image and set the tone for expansion.

Chanel’s new Beauté Initiale, which is designed to prevent skin damage in young women before it occurs, will launch next month.

Nicole Miller has signed a global fragrance license with Parlux to develop and market the Nicole Miller and Nicole by Nicole Miller brands.

Australia plans to trumpet its beauty authority to the U.S. market through an outreach initiative orchestrated by the Australian Trade Commission.

1225668

● PRINGLE ADDITIONS: Pringle of Scotland has named Fabio Guidetti, 41, as international head of sales, and Mark Winrow, 34, as national sales manager for North America. Both are new positions. Guidetti, who previously has worked with Donna Karan and Cerruti, reports to Karen Schneider, direc-tor of women’s wear and accessories, and to Bill Christie, di-rector of men’s wear. Winrow, formerly national sales manager for North America at Miu Miu, is working on women’s wear only and reports to Guidetti. Both already have begun work at Pringle in London.

In Brief

Obituary.......................................................................................14

WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.

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“I’ve only seen one of them, but he’s like a really normal white guy. Dorky, but a cute dork, not a bad dork. You know there’s a difference, right?”

— Kid Sister at Lollapalooza

on the band Daft Punk

Quote of the Week

Must ReadGet Women’s Wear Daily anywhere, anytime. A new issue is available at 12:01 AM EST. For more information, visit wwd.com.

WWD. COM

Ralph: Polo Just BeginningBy Jeanine Poggi

NEW YORK — Polo Ralph Lauren Corp. had its an-nual shareholders meeting here Thursday at the St. Regis Hotel, and the emphasis was on longevity.

Chairman and chief executive offi cer Ralph Lauren said that while getting ready for the meet-ing that morning he realized it all began with a tie.

That was a reference to the early days, when his upstart fi rm began by selling a tie that was a half-inch wider than the ones already on the market. Now, of course, 40 years later, the busi-ness he founded is about much more than ties, with merchandise ranging from apparel to acces-sories for men, women and children, as well as product for the home.

“The company is just beginning,” the chairman told attendees, assuring them Polo still has plenty of opportunities for growth.

The company is getting ready to launch new initiative American Living, a private label concept that will arrive at J.C. Penney Co. Inc. stores in spring 2008. The new line is part of Polo’s Global Brand Concepts, a business division in which the company works in partnership with retailers to develop private brands. American Living is the division’s fi rst initiative.

Lauren said J.C. Penney is dedicating about 5 to 10 percent of its shelf space to the new private label.

“Department stores need individuality and specialty stores need something that’s their own,” Lauren said.

When it came time for questions, one share-holder asked why the public relations depart-ment was so “rude” as to choose a black-and-white photo of “the great chairman who founded the

company,” instead of a color picture, to appear in the annual report.

Lauren replied, “I chose the picture….I look handsome in it and it was taken 20 years ago, so I look a lot younger.”

Polo, which went public in 1997, has been able to remain competitive, and Lauren predicted the company will be around for many more years.

“Through the years we have had the same for-mula for running our business,” the chairman said. “We are not about trendy fashion. It’s not a hot retailer. It’s about longevity, which is unheard of in the fashion business, which is all about youth and change.”

By Molly Fergus

Wilsons The Leather Experts Inc. wants to deepen its presence in the accessories business.

On Thursday, the retailer said it has hired investment banking fi rm Financo Inc., design fi rm IDEO and independent research and consulting firm Telsey Advisory Group to help it formu-late a “future business strategy.”

That strategy is expected to include accessories-only stores, the company said.

Developing the Minnesota-based leather retailer’s acces-sories business, which currently includes wallets, handbags and belts, will involve the acquisi-tion of an established acces-

sories brand whose products would be sold in Wilsons’ stores, said Gilbert W. Harrison, chair-man of Financo.

“They’re in the accessories business now and they want to continue to grow it,” Harrison said. “It’s a growing segment. The population is interested in the accessories.”

Harrison said the key will be in “fi nding the right company to acquire that will allow Wilsons to nationally expand overnight its accessories business.”

The leather retailer also said Michael Sweeney, manag-ing partner of Goldner Hawn Private Equity, will become nonexecutive chairman of the board. Michael Searles contin-

ues as chief executive offi cer.“Goldner Hawn invested in

Wilsons Leather because we are excited about the company’s prospects, particularly with re-gard to our future in the women’s accessories business,” Sweeney said in a statement. “We believe that the company’s 411 stores across the United States unique-ly position us for success.”

Minneapolis-based Goldner Hawn in June led a group that invested $45 million in Wilsons, with Goldner Hawn injecting $35 million. The other two inves-tors are Peninsula Investment Partners and Quaker Capital Management Corp. Together the group holds an 85 percent stake in the retailer.

Adam Lippes Line Gets Name MakeoverBy Julee Greenberg

NEW YORK — Adampluseve, the contemporary sportswear brand founded by Adam Lippes, is un-dergoing a name change.

Starting in October, the company will be called Adam Adam Lippes, with a new logo and Web site called shopadam.com launching that month. The new name will coincide with the opening of the brand’s first freestand-ing store in Manhattan’s Meatpacking District. Lippes, creative director and chief executive offi cer, cited several reasons for the name change.

“We found that there was a lot of confusion with our name since people who searched for our brand online were led to a porn site,” said Lippes, noting that after he was on “The Oprah Winfrey Show” last year, he started to get complaints from viewers about the name. When they searched for his brand, they were led to Adam & Eve’s Exotic Boutique at adamneve.net. “When we launched, I thought the name was cute for a brand of under-wear and T-shirts, but as we grew into a full col-

lection, we started to explore.”Lippes said the new logo, which was designed

by Doug Lloyd of Lloyd & Co., will be displayed on all products. Currently, the women’s and men’s

lines have different labels, with the men’s line label reading a+dam and wom-en’s a+eve.

“Adam will give the col-lections a true personality and will help solidify our brand for the future,” he said. “Thanks to my par-ents, they gave me a great strong name, and it was the fi rst name ever, so why not use it?”

Before starting his own brand four years ago, Lippes was the creative director for Oscar de la Renta from 1996 to 2003. Earlier this year, Lippes’ company got a fi nancial boost when Marty Wikstrom and Dawn Mello created an investment vehicle called The Atelier Fund, whose principal investor is Compagnie Financière Richemont SA. Its fi rst investments included the Adam brand. Sources said Atelier paid about $9.5 million for a 35 percent stake in the brand, an investment that will help Lippes expand wholesale and freestand-ing retail businesses worldwide.

WWD.COM2 WWD, FRIDAY, AUGUST 10, 2007

Wilsons The Leather Experts Eyes New Strategy

The new Adam Adam Lippes logo.

Ralph Lauren

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Elie Hits the BeachBy Marc Karimzadeh

EAST HAMPTON, N.Y. — Elie Tahari wants to transform his label into a lifestyle brand with a network of freestanding boutiques worldwide and new categories such as home and fragrance.

To him, the new fl agship here, which is being unveiled with a party on Saturday night and opens to the public Sunday, serves as a milestone to further his image and help achieve his goal of eventually building a $1 billion company. The store is located at 1 Main Street on the corner of Newtown Lane — arguably the town’s equivalent of Fifth Avenue and 57th Street.

“This is the best image-building you can create, the best piece of advertising anyone could have,” said Tahari, in a walk-through of the 5,000-square-foot space on Thursday.

The store is also a nod to Tahari’s retail philosophy, which is about building relationships with his customers rather than just making a sale for the sake of a quick buck.

“It’s not just a one-night stand, it’s not just about a date,” he said. “It’s not about her purchasing something and you don’t see her again. It’s about her coming in, experiencing the lifestyle inspiration and wanting to come again.

“It’s about stimulating all the senses, from the visual, to sound, smell and taste,” he added.

To that end, Tahari made sure natural light streams through the red brick building, cool summer sounds pump through the sound system, bowls fi lled with apples and almonds are dotted throughout the stores, and drinks are being served at all times, in an environment of cool vintage furniture, coffee-table books and home decor items by other designers.

“This is no longer just a clothing store,” he said. “Everything here is for sale. The idea is to get the customer stimulated and inspired. I want our customers, who have an hour to spend and don’t know where to go, to say, ‘Let’s go to Elie Tahari.’”

First-year sales projections for the store are $4 million to $5 million. Tahari had his eye on the building — a former post offi ce that more recently

housed Calypso and several offi ces — for seven years. When he fi nally purchased it in 2005 for $8 million, he and his team embarked on massive renovations, gutting the interior and completely rebuilding it. Architect Piero Lissoni concocted a modernist inside with 100-year-old stained oak made to look like driftwood, a stark glass skylight with mirrored panels to enhance the light and a two-story glass case structure that houses the shoe salon and leads to the grand staircase.

“The whole interior is designed to resemble an East Hampton beach resort,” Tahari said.

“People come here in the summer because they want to be outside,” he added. “Because of the amount of light, they really feel as if they’re in the Hamptons.”

The main fl oor features vignettes of all his product categories, which now in-clude women’s and men’s wear as well as footwear and his launch handbag collec-tion for fall, while the second fl oor homes in on a more extensive assortment of his apparel. Throughout, the store is dotted with art Tahari and his wife, Rory, have collected over the years. There is a collection of midcentury furniture Rory Tahari curated with interior designer Amy Lau, including pieces by Tapio Wirkkala, Poul Kjaerholm, Arne Norell, Hans Wegner and Vladimir Kagan. It also offers a mix of vintage jewelry that Rory Tahari put together with jewelry designer and collector Jill Heller, and other items such as Ted Muehling china and crystal ware, Molton Brown candles, Lobmeyr bowls, an iPod Underwater system by Ego, Torso candles

by Michele Oka Doner and even a coloring book designed by Rory Tahari.

“The project became a store about our-selves and what we love,” she said. “We’re giving customers an edited collection of our taste. I don’t think we intended it to be this way, but it evolved into a passion project.”

And, added Elie Tahari, “if you keep the family entertained, the wife shops.”

The store offers many Hamptons exclu-sives, including a sequined dress with a chif-fon overlay for $598, a taupe sheared mink coat for $14,500 and a crocodile version of the Zoe half-moon-shaped handbag for $6,300.

Elie Tahari has been going out to the Hamptons for almost 20 years, and he said he has a particular affection for East Hampton.

“East Hampton has a very creative, talent-ed and affl uent community,” he said, explain-ing his reasons for opening his biggest store to date here. “Some of the best people from Manhattan and all over the country live in this town, whether they are in fi nance, mov-ies, fashion or publishing.”

Some may raise an eyebrow at the fact that Tahari invested so heavily in a town that has its heaviest traffi c in summer, but he does not seem perturbed. The store serves to set a worldwide standard for his com-pany. And with East Hampton’s increasingly international crowd, it is also an intro-duction of the brand to the world. Elie Tahari opened a Milan showroom last year and wholesales the collection to stores such as Tsum in Moscow, Quartier 206 in Berlin, Gio Moretti in Milan and Joyce in Hong Kong.

Freestanding retail will be a key tool for worldwide growth, and the designer dis-closed he has been in discussions with Joyce to open Tahari specialty stores in China, and with Harvey Nichols in Turkey and Dubai to open stores in those regions. “It’s part of the brand-building,” he said. “We can have 30 stores in the U.S. and probably 50 stores worldwide,” he said.

Tahari also said there have been internal discussions about creating a signature fragrance, and a home collection, though no specifi cs have been determined.

“This is the beginning of a new era at Elie Tahari,” he said, and with a nod to his new Hamptons store, added, “It will be a dream if we can have this type of presence in all luxury areas in the world.”

Elie Tahari

Views of Tahari’s East Hampton fl agship.

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WWD.COM5WWD, FRIDAY, AUGUST 10, 2007

By David Moin

Fortunoff is moving off Fifth Avenue and relocating to 3 West 57th Street, right next to Bergdorf Goodman,

WWD has learned.The move is a big step for the 85-year-old Fortunoff to

modernize its image, elevate productivity and set the look and tone for an expansion that seems overdue. Fortunoff ’s reputation is much larger than its footprint, which is lim-ited to the Tristate area.

“This will be our vision of what jewelry stores should be like,” said Arnie Orlick, the retailer’s chief executive of-fi cer. “Our new store will be fi lled with visual grandeur and will be much more contemporary than the very traditional environments we have lived with.”

Fortunoff on 57th Street is scheduled to open in the fi rst week of November and will encompass three levels and 12,600 square feet. Fine jewelry and watches will be on the fi rst fl oor; a Baby Fortunoff boutique, silver jewelry, men’s jewelry and interactive wedding and gift registries for tabletop and home furnishings will be on the second, and downstairs, there will be ‘‘a diamond world’’ for diamond engagement rings, wedding bands and other expensive jew-elry, with rooms for private viewings.

The store is being designed by Barteluce Architects & Assoc., which has created environments for such luxury retailers as Gucci, Cartier and Fendi. Recycled woods ac-cented with recycled aluminum, warm earth tones and me-tallics, and low-energy LED lighting will be used to create an environmentally friendly space. “Using the sparkle and facets of a gemstone as the gen-esis of the design concept, we created a merchandising panorama that evokes the thrill and mystery of the mining experience,” Dan Barteluce, found-er and principal of the fi rm bear-ing his name, said in a statement. “Brightly lit jewelry showcases form dense, horizontal light bands juxtaposed against an organic back-ground interspersed with blades of glass which refract light.”

The site previously served as tem-porary quarters for Chanel, Coach and Bulgari stores and, earlier, a Phillips auc-tion gallery.

Fortunoff ’s current four-level, 15,000-square-foot Manhattan site, at 681 Fifth Avenue by 54th Street, opened in 1979. From early November 2007 through January 2008, Fortunoff will simultaneously operate two Manhattan locations, though management feels the two Fortunoffs with-in four blocks won’t cannibalize sales from each other. “It’s the time of the year where there’s enough volume to have a spectacular Christmas in both stores,” Orlick said. “In no way, shape or form will we take merchandise out of Fifth Avenue. We will run it as if the other store doesn’t exist.”

Orlick characterized the existing four-level store as “un-usually successful.” However, “It’s become quite tired and has not been as productive as we’d like. It’s been very chal-lenging to get people up to the higher levels.”

The $500 million Fortunoff chain was sold by the Fortunoff and Mayrock families in 2004 to Trimaran Capital Partners and the K Group, two private equity fi rms. The families retain a 25 percent stake and some family mem-bers are still involved in the business. Louis Fortunoff and Isidore Mayrock are on the board; Esther Fortunoff runs jewelry with her sister Ruth, and David Fortunoff handles the technology end.

The jewelry and home chain has enough of a national reputation to expand. But the late Alan Fortunoff, son of the founders Max and Clara Fortunoff, had a philosophy of wanting to have stores located within a few hours’ drive so it would be easier to keep tabs on the branches. Fortunoff operates a total of 20 stores, including four large jewelry and home furnishings units in Westbury and White Plains, N.Y., and Wayne and Woodbridge, N.J.; two specialized jew-elry and gift stores on Fifth Avenue and in Paramus, N.J., and 14 backyard-furniture stores in the metropolitan area.

The new owners are fueling the expansion, and there’s been speculation about a public offering down the road. “The goal is to strategically — and with good sense — start expanding,” Orlick said, principally 10,000- to 12,600-square-foot jewelry shops or outdoor furniture stores in the 15,000-square-foot range. Fortunoff is exam-ining potential locations in the Tristate area as well as Pennsylvania and states further south, he said. “A jewelry store is not that expensive and can get the payback very

quickly,” Orlick said. Fortunoff ’s outdoor furniture stores, he added, require relatively little capital to open and gen-erate sizeable volumes.

Fortunoff stores can be much larger, such as the full-line 180,000-square-foot unit in White Plains, which cost $25 million to $30 million to create, Orlick noted. Fortunoff ’s largest unit is the 200,000-square-foot full-line jewelry and home store in Westbury, on Long Island.

The new Manhattan site could raise the retailer’s vis-ibility, considering the tony brands within eyeshot on all four corners of Fifth Avenue and 57th Street — Bergdorf Goodman, Bulgari, Louis Vuitton and Tiffany. However, luxury brands believe that Fifth and Madison Avenues, and 57th Street east of Fifth Avenue, best serve their branding objectives, and there is a perception that the retail land-scape turns down-market west of Fifth.

Orlick dismissed such concerns, stating, “I was on 57th Street this morning and I stood in front of our store to look at the dynamics. I didn’t see much change crossing Fifth. The traffi c was unbelievable — exactly the customer we want.” Orlick said the new Fortunoff is expected to achieve 20 percent higher productivity than the Fifth Avenue store, though he declined to specify volume objectives.

Fortunoff is known for its value, service, bridal and gift registries, and sells fi ne jewelry and fi ne watches, outdoor furniture, tabletop, housewares and home textiles. The chain tends to be promotional in its home business, but not with jewelry, which represents about 33 percent of the volume.

In other plans, Fortunoff will relaunch its Web site on Jan. 15 so it’s easier, faster and more fun to shop, and will intro-duce new blue packaging, including linen-fi nished jewelry boxes, redesigned shopping bags and gift wrap in tandem with the opening. A new chief marketing offi cer, Bernard Sensale, formerly with Zale Corp., was hired last month. With its huge and dated silver lettering, Fortunoff has been a weighty presence on Fifth Avenue. But on 57th, “We’ll have a new Fortunoff ’s sign which will be unique,” Orlick said.

Fortunoff had good reason to sacrifi ce a prime spot, 681 Fifth Avenue near 54th Street, and relocate

the store. The landlord, Metropole Realty Advisors, bought Fortunoff out of the lease, then found the re-tailer a suitable substitute at 3 West 57th Street.

“Without an alternative location, no amount of money would have convinced Fortunoff to make the move,” said Robert A. Siegel, Metropole’s chief ex-ecutive offi cer.

Metropole purchased the Fifth Avenue building from Fortunoff for $86 million in 2005, and gave the retailer a new long-term lease before buying the lease back for an undisclosed price. The entire space, with the exception of the four-level Fortunoff store that va-cates in January and a penthouse residence, has been cleared out. Fortunoff had owned the site since 1979.

Sandwiched between Fendi and Gucci, the build-ing has 65,000 square feet, 15 fl oors and 14- to 20-foot ceilings, which could readily accommodate a luxury megastore of the magnitude of others going up on the avenue. Giorgio Armani is planning a 45,000-square-foot complex at 717 Fifth Avenue on the southeast corner of 56th Street, and Gucci also is planning a 45,000-square-foot store, its largest, in Trump Tower at 725 Fifth Avenue.

At 681 Fifth Avenue, Siegel only wants to lease to luxury. It could be one luxury brand that takes the entire space, or a few that divide up the space, he said. The property has 42 feet of frontage on Fifth Avenue.

It was the original site of the Metropolitan Museum of Art.

According to market sources, rents per square foot range from $1,600 to $2,000 along Midtown Fifth Avenue, and $400 to $500 on 57th Street near Fifth Avenue, though an exception would be 3 West 57th Street, which is said to be more expensive. Rents drop to around $150 a foot by Sixth Avenue.

Metropole specializes in buying, developing and leasing properties and advising luxury brands on real estate decisions. Metropole has been active on Fifth and Madison Avenues, 57th Street, Rodeo Drive in Beverly Hills, San Francisco’s Union Square, Chicago’s North Michigan Avenue and Oak Street and Hawaii’s Kalakaua Avenue, as well as in Florida.

— D.M.

Fortunoff Makes a Move to Update Image

“The goal is to strategically — and with good sense — start expanding.”

— Arnie Orlick, Fortunoff

Fifth Avenue Site Up for Luxe Grabs

Fortunoff on Fifth Avenue near 54th Street. The retailer is vacating the

site, which could become a luxury brand megastore.

A rendering of Fortunoff’s upcoming store on 57th Street.

Arnie Orlick

First, do no harm — that’s the aim of Chanel’s new Beauté Initiale, which is designed to prevent skin

damage in young women before it occurs. The line, which will launch in September, is

Chanel’s fi rst skin care line direct-ed at twenty- and thirtysomethings, said Elizabeth Mankin, senior vice president of Beauté marketing and education for Chanel in the U.S.

“Your 20s and 30s are when the fi rst breakdowns in cellular func-tion and signs of aging occur,” said Mankin. “It’s at that point that you see your very fi rst lines. This is a multiprotective, comprehensive line that allows women to act today to preserve their skin for tomorrow.”

The key ingredient in each of the fi ve products that make up the Beauté Initiale line is Blue Ginger PFA, a polyfractioned ver-sion of blue ginger, an herb grown in Madagascar that is said to pos-sess “extraordinary” antioxidant properties, said Mankin. “Blue Ginger PFA is 1,400 times more concentrated than the original ex-tract, and considerably more pow-erful than ordinary ginger,” she added. Other key ingredients in-clude vitamins C and E and trace elements of magnesium, zinc and copper, intended to protect cell membranes, elastin and collagen against free radicals and reen-ergize tired skin by boosting cell function, Mankin added.

The blue ginger is processed at the brand’s labs in Sophia Antipolis, France, using Chanel’s polyfractioning technique. The proprietary technology is designed to allow Chanel to use extremely costly ingredients in mainstream products by using a 12-step technique to increase the amount of usable ex-tract and to purify it. The company fi rst used the tech-nique last year with its Sublimage cream.

In addition to the blue ginger present in all of the products, additional antioxidants and skin protectors have been added where possible. Energizing Multi-Protection Concentrate, $85 for 1 oz., adds taurine, said to boost cellular energy; Energizing Multi-Protection Cream SPF 15 and Energizing Multi-Protection Fluid

SPF 15, designed for dry and oily complexions, re-spectively, are each $75 for 1 oz. and are intended to be everyday moisturizers; Energizing Multi-Protection Eye Cream, $60 for 0.5 oz., includes yeast extract and

sodium lactate, said to deal with puffiness and dark circles, and Energizing Multi-Protection Fluid Healthy Glow SPF 15 is a moistur-izer with a built-in self-tanner and SPF, $75 for 1.7 oz.

Beauté Initiale will be avail-able in more than 800 department and specialty store doors. More than 200,000 in-store samples are planned, as are direct-mail pieces and in-store co-op events with na-tional magazines including Lucky, Self and Glamour. No national advertising for Beauté Initiale is planned.

While Mankin declined to com-ment on projected sales or promo-tional spending, industry sources estimated that the new line would do about $10 million at retail in its fi rst year on counter.

The brand’s iconic fragrance, Chanel No.5, is also being given a new twist this fall. In October, Chanel will launch No.5 Eau Première, which the house is call-ing a fragrance “essence.”

“Eau Première is modern, yet true to the spirit of No.5,” said Laurie Palma, Chanel’s U.S.-based senior vice president of fragrance and Internet market-ing, adding that Chanel’s master perfumer, Jacques Polge, devel-oped the new version. “It is a great dare to take on a classic and rebalance it — essentially, No.5 has never been changed. This is a fresher, rounder, more delicate

version intended to be used every day.” Eau Première tweaks the original’s top notes just

a bit, adding ylang-ylang from the Comoro Islands and jasmine sourced from Chanel-owned fi elds in Grasse, France, explained Palma. A 5-oz. bottle will retail for $125.

Eau Première will be available in about 2,400 department and specialty store doors in the U.S. A new national ad shot by Patrick Demarchelier, fea-turing Nicole Kidman, will break in November fash-

ion, beauty and lifestyle magazines, including Vogue and Vanity Fair, added Palma. As well, an intensive sampling campaign intended to distribute at least fi ve million scented pieces and 55 million direct-mail pieces is planned. Deluxe samples, intended to resemble a couture showing with the sample as star, have been designed for the brand’s most high-end doors, including Neiman Marcus, Saks Fifth Avenue and Chanel boutiques. About 6,000 of these samples will be produced.

Palma declined to discuss sales projections or adver-tising spending, although industry sources estimated that Eau Première would do $15 million to $20 million at retail in its fi rst year on counter. About $3 million to $5 million is expected to be spent on advertising and promotion, said sources.

— Julie Naughton

6 WWD, FRIDAY, AUGUST 10, 2007

The Beauty Report

Nicole Miller is getting back into beauty in partnership with Parlux Fragrances Inc.

Under the terms of the fi ve-year global fra-grance license, Parlux will develop, market and distribute fragrances under the Nicole Miller and Nicole by Nicole Miller brand names. Aimed at high-end specialty stores, the fi rst fragrance will bow in the U.S. during next year’s holiday season, followed by a worldwide rollout.

“Nicole is the perfect partner for us as we implement our strategic plan to round out our portfolio at the upper end,” Neil Katz, chief executive offi cer of Parlux Fragrances, said in a statement. “Just as she has established a dis-tinct design signature in apparel that appeals to modern women around the world, we feel she will break through in fragrance to create a scent with similar appeal.”

Although this is a new partnership for Miller, she’s already a veteran of the fragrance world. In the early Nineties, she teamed up with Riviera Concepts to launch two women’s scents and a fragrance for men. But seven years ago, Miller decided to part ways with Riviera and take a break from the beauty industry.

Miller felt the timing was right for her to jump back into the business. “I’ve already had a lot of experience in the fragrance business and am familiar with everything from the packag-ing to the different components of the scents,” Miller told WWD on Thursday. “Now, I’m going

into this knowing a lot more than I did the fi rst time around. It’s been overwhelming with all the celebrity fragrances, but I think people are moving away from that. Now, the focus is more on designers, so I think it’s the perfect time to get back into it.”

Through her strategic partnerships, the Nicole Miller brand now includes accessories, bags, shoes, eyewear, jewelry, home products, furniture and the Nicole by Nicole Miller ap-parel collection.

Miller said she wants her fi rst fragrance to be both “ageless” and feminine. “I’ve always been against clothing that makes you look older, so I want to translate that young spirit and attitude to my fragrance,” said Miller.

Miller is working on the juice now and said she would like to incorporate fl oral notes with a twist.

“I want my fragrance to refl ect my rebellious nature, since I don’t like following the pack,” said Miller. “If there’s a particular trend in fra-grance, I’ll run against the current. I feel I do that in clothing and want to do the same thing in fragrance.”

Parlux also produces Paris Hilton’s fra-grances, as well as those of Guess, XOXO, Ocean Pacific, Jessica Simpson, Maria Sharapova, Andy Roddick, Baby Gund and Fred Hayman Beverly Hills.

— Michelle Edgar

Nicole Miller Returns to Fragrance

Chanel for Fall: New Skin Care, Scent Offerings PlannedThe Eau

Première ad visual, featuring

Nicole Kidman.Eau Première

Keisha Nash-Whitaker, wife of Oscar-winning actor Forest

Whitaker, is joining forces with ce-lebrity makeup artist AJ Crimson this fall to launch a line of lip glosses under the brand name Kissable Couture.

Launching in September, Kissable Couture’s First Kiss col-lection will contain six shades of lip gloss. Designed for all skin tones, the shades will range in color from light peach to burgundy wine and retail for $25 each.

As a former model who ap-peared in publications such as Glamour, Lucky, In Style and Vanity Fair, and a self-pro-claimed “lip gloss junkie,” Nash-Whitaker had always wanted to get into the beauty business. Following a successful modeling career, which she started more than 15 years ago, she said she saw moving into the beauty in-dustry as a natural progression and claimed she even declined several opportunities to launch her own clothing line.

“Before and after modeling, beauty was all around me, and it became part of who I am,” said Nash-Whitaker. “Although lipstick is making a comeback, so many people rely on lip gloss because it’s so effortless.”

While developing the items, Crimson wanted to be sure the glosses were made from buildable pigment to achieve a sheer look or more intense color, depending on the look consumers want.

As a playful touch, Nash-Whitaker decided to name each of the glosses in the First Kiss collec-tion after boys.

“They’re not all boys that I’ve kissed,” said Nash-Whitaker, who added that her husband, Forest, even has a gloss featured in the col-lection. “That’s my favorite color, and the deepest color we have.”

Industry sources estimate that Kissable Couture’s First Kiss collection could bring in about $1 million in first-year retail sales, dependent on the distri-bution the company is working to secure. Nash-Whitaker and Crimson will enter Henri Bendel and hope to add high-end bou-tiques in cities such as New York, Los Angeles and Houston. The company also will sell the line on kissablecouture.com. In the spring, the company plans to ex-pand its lip assortment with a col-lection of liquid lipsticks, followed by lip plumpers and nonmedicat-ed lip treatments.

— Michelle Edgar

PARIS — The Lacoste apparel and fragrance busi-nesses are being cultivated in a similar fashion.

“The Lacoste brand has developed a level of sophistication not see in fi ve to 10 years,” said Oliver Kastalio, global vice president for pres-tige products at Procter & Gamble Co., holder of the Lacoste beauty license. “What’s being seen in the fashion line is being mirrored by the fragrance range and brought to life with the launch of Lacoste Elegance.”

The new men’s scent — which just hit U.S. and U.K. shelves and is being rolled out to Germany and France, then to Italy and Spain in October and Russia in November as part of its global introduction — targets males aged 30 to 35, according to Kastalio.

Elegance’s fougere oriental juice, created in partnership with Quest, includes a “light aro-matic accord,” with notes of thyme, mint, violet leaves and Juniper tree berries; an oriental woody accord of sandalwood, cedar wood and amber notes, plus a bitter chocolate accord, and a spicy accord, made of black pepper, nutmeg, cardamom and raspberry notes.

Its advertising campaign includes 15-, 20- and 30-second TV spots, created by Michael Haussman, featuring model Norbert Michalke as a modern-day gentleman in an urban escapade. There are also single- and double-page print ads and an Internet campaign. Sampling is to include miniatures, among other formats.

Lacoste Elegance’s bottle, which is partially swathed in a brushed-metal sheath and capped in the same material, was created in collaboration with Paris-based design agency QSLD. The fl acon’s blue-and silver-colored outer packaging was conceived in partnership with Lutz Herrmann Design of

Hamburg, Germany.P&G executives would not discuss sales

projections, but industry sources estimate the scent will ring up around $100 million in retail sales during its fi rst year.

The Lacoste fragrance business has grown 15 times the size it was in 2001, when P&G took over the business, according to Kastalio, who would not divulge numbers.

The Lacoste Elegance lineup includes a 90-ml. eau de toilette spray for 66 euros, or $90.20 at current exchange rates, and a 50-ml. eau de toilette spray for 50 euros, or $68.40. The 90-ml. aftershave lotion is 54 euros, or $73.90; the 50-ml. aftershave lotion is 43 euros, or $58.85; the 75-g. aftershave balm is 35 euros, or $47.90, and the 75-g. stick deodorant, 150-ml. spray de-odorant and 150-ml. shower gel are 22 euros, or $30.15, each. Prices are for France.

In the U.S., the collection is priced at $50 for a 1.6-oz. eau de toilette spray; $65 for a 3-oz. eau de toi-lette spray; $50 for a 3-oz. aftershave splash; $42 for a 2.5-oz. aftershave balm; $28 for a 5-oz. shower gel and $22 for a 2.5-oz. deodorant stick. It is being carried by 2,500 U.S. department and specialty store doors, including Bloomingdale’s, Saks Fifth Avenue, Nordstrom, Macy’s and Dillard’s.

“Lacoste Essential, which we launched 18 months ago in the U.S., reestablished the Lacoste brand as a serious fra-grance brand in the U.S.,” said Don Loftus, president and chief executive offi cer of P&G Prestige Beauty in the U.S. “Adding Elegance to the mix addresses a different side of that consumer and we believe it will be a huge success.”

— Jennifer Weil, with contributions from Julie Naughton, New York

7WWD, FRIDAY, AUGUST 10, 2007

WWD.COM

Elegance Joins Lacoste Scent Lineup Keisha Nash-Whitaker Makes Lips ‘Kissable’

PARIS — Parfums Kenzo landed in Tokyo for its new men’s scent, meant to lure the 18- to 35-year-old set.

Tokyo by Kenzo, which will bow worldwide in September, took a cue from the Japanese capital’s mix of neon lights and nature for its juice, packaging and advertising.

“Japan is an integral part of the brand’s roots, and Tokyo is a city that makes people dream,” said Patrick Guedj, creative director of Parfums Kenzo, owned by LVMH Moët Hennessy Louis Vuitton.

The fragrance is considered to be a product for a hipper and younger consumer than the other Kenzo scents, said Guedj.

The fragrance’s bottle is in the same shape as Kenzo Pour Homme, but for this iteration, Tokyo designer Kashiwa Sato colored the fl acon black with bright-colored rays reminiscent of electric lights. Sato’s outer carton design features an image of vibrant lights through trees.

Tokyo’s juice, likewise, plays on the dichotomy between urbanity and nature. Created by Firmenich’s Marie Salamagne, Tokyo contains zesty top notes of ginger, lemon and grapefruit; mid notes of pink pepper and green tea, plus a bit-

ter orange, and base notes of wood, cedar, clove and nutmeg. “We included vibrant notes to express the colors of Tokyo

at night and then this woody dimension to represent the trees in the city,” said Guedj.

The fragrance’s advertising campaign, by Guedj, depicts a Westerner arriving in Tokyo. To add realism to the 30-sec-ond TV spot, he had model Michel Novello wander around

the city while somewhat jet-lagged and lost. (Guedj discovered the music used in the spot, by Broadcast from the album “The Future Crayon,” during the shoot.) There will also be single- and double-page print ads. Sampling is to include postcards of Tokyo with scent strips attached and a USB key containing the ad fi lm.

Industry sources estimate the scent will gener-ate 20 million euros, or $28 million at current ex-change, at wholesale worldwide in its fi rst year.

In France, a 30-ml. spray bottle of Tokyo eau de toilette will sell for 33.50 euros, or $46; a 50-ml. bottle for 46 euros, or $63, and a 100-ml. version for 65 euros, or $89. In the U.S., where the scent will be launched at Sephora in mid-September and then carried exclusively at the LVMH-owned perfumery chain through the end

of the year, the 50-ml. eau de toilette spray will sell for $50 and the 100-ml. version for $65.

— Ellen Groves

Tokyo Inspires Kenzo’s Latest

PARIS — With its new fragrance Jil Sander Man due out this fall, the Jil Sander fash-ion house and its beauty license holder Coty Inc. want to bulk up the brand’s scent business for men, especially in the high-end segment.

The fragrance is the fi rst to be conceived with Jil Sander’s creative director Raf Simons.

“It encapsulates the vision and values of the Jil Sander brand,” said Françoise Mariez, senior vice president of international European marketing licenses of Coty Prestige, a division of Coty Inc. She calls the “Jil Sander man” one who’s “very refi ned,” “elegant” yet “not formal.”

Simons found the process of conceiving a fragrance “much more abstract” than the method of creating a clothing line. He chose to make Jil Sander Man “masculine” and “fresh” but not in a traditional manner.

Firmenich’s Thierry Vasseur and Annick Menardo concocted the fragrance. The juice includes top notes of fresh lav-ender, zest of bergamot and violet; heart

notes of sage, Artemisia and vetiver, and base notes of blue cedar and Russian leather.

The Jil Sander Man bottle was created by Simons with Patrick Veillet. They took in-spiration form the minimalist works of John MacCracken and Donald Judd, plus the Jil Sander Number 4 fragrance bottle from yesteryear.

“I wanted a cube on a cube,” said Simons. “I didn’t want to have a bottle with a gap; gaps are often distracting to me.”So, instead, there is a fi ne

metallic line separating the two cubes, which are of a deep blue.

“It’s the darkest blue before black,” continued Mariez, who explained it’s a

signature Jil Sander color.Jil Sander Man’s advertising cam-

paign, featuring model Robert Perovich with an intense gaze, was shot by Willy Vanderperre. It will appear in single and double pages.

Sampling for Jil Sander Man will in-clude 2.5-ml. miniatures.

The fragrance is to fi rst be introduced in September in Jil Sander boutiques worldwide, plus German-speaking countries, the Netherlands and Eastern Europe, as well as its travel-retail doors. There will be a wider rollout following.

Industry sources estimate the fra-grance will ring up $25 million at retail in the fi rst 12 months.

The Jil Sander Man lineup includes 30-, 50- and 90-ml. eau de parfum sprays for 40 euros, or $54.75, 50 euros, or $68.45, and 67 euros, or $91.70, respec-tively. A 200-ml. hair and body shampoo will be 22 euros, or $30.10; a 50-ml. af-tershave splash, 34 euros, or $46.55; a 125-ml. spray deodorant, 23 euros, or $31.50, and a 75-g. stick deodorant, 22 euros, or $30.10.

— J.W.

A New Man for Jil Sander

Tokyo by Kenzo

Kissable Couture’s new First Kiss collection of lip glosses.

The ad visual.

PHOT

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The Beauty Report

By Marielle Bobo

MONTE CARLO — Monte Carlo oozes excess — from the yachts to the plastic-surgery-prone glamazons. Ironically, Skin Doctors Cosmeceuticals — the Australian-born brand that prides itself on providing money-saving, antisurgical cosmetic solutions — choose this location for its 10-year anniversary gala last month.

“It was a tongue-and-cheek dig at the conventional beauty industry,” explained Robert Jarmyn, export director for Cat Media, Skin Doctors parent company. “You don’t need to be rich and famous to treat skin care problems. Real people can look good without undergoing cosmetic surgery.”

His sentiment was exactly the premise under which Skin Doctors founders Sonia Amoroso and Peter Nicholas in 1987 launched their fi rst product, called Vein Away, a topical cream that reduces the appearance of veins and broken capillaries. It became Australia’s number-one selling topical treatment for that year.

Ten years, 48 countries and 37 products later, a group of journalists gathered here at the famed Hotel de Paris, where antiaging authority Arturo Puig refl ected on the company’s growth and introduced two

upcoming products, namely Antarctilyne Plump3 and SD White. Both are slated to hit stores this October.

Antarctilyne Plump3, which will retail for $70, is said to be an injection-free wrinkle fi ller, promising to stop the breakdown of collagen using Antarcticine, an ancient ingredient found at the bottom of the Antarctic Sea. Puig claimed its ingredients allow the skin to boost collagen by up to 300 percent in just seven days.

Retailing for $35, SD White is a skin brightener. It is designed to quickly treat the most diffi cult skin types due its active ingredient Emblica. “It acts to suppress the production of melanin, which is one of the key contributors to hyperpigmentation,” said Jarmyn of Cat Media.

Skin Doctors has a strong international presence,

selling to a number of mid- to upper-tier retailers including Harrods, Galeries Lafayette and Selfridges. Skin Doctors’ global retail sales exceed $100 million, according to the company. With a slew of new products

in the pipeline, the company has its sights set on expanding its U.S. presence. Skin Doctors is one of 10 brands participating in an initiative by the Australian Trade Commission called “Discover the Beauty of Australia,” which is designed to spotlight Australian brands.

“Australia is known to have one of the harshest climates in the world,” said Jarmyn. “We have developed a strong heritage in

understanding not only how to protect skin from these conditions, but also what can be done to correct the damage.” With the help of Ingenuity Inc., the U.S. distributor for Skin Doctors, plans for expansion are in the works. Skin Doctors already sells its wares on Amazon.com and the Home Shopping Network and in stores such as Ulta, Beauty First and Pure Beauty. According to Robert Waters, vice president of sales for Ingenuity Inc., the line is slated to roll out to Sephora doors in early 2008.

Skin Doctors Celebrates 10th Anniversary

A Beauty Land That Lies Down UnderBy Molly Prior

Australia, the country where Helena Rubinstein first built her beauty empire, plans to trumpet its beauty authority to the U.S. market.

The Australian Trade Commission, an Australian government agency known as Austrade, partnered with McEntyre Public Relations Inc. to develop a marketing initiative designed to put 10 Australian brands in front of U.S. beauty editors and beauty buyers.

Beginning next week, the assortment will reach the desks of some 75 U.S. beauty authorities by way of a satchel branded “Australian Trade Commission” and labeled “Discover the Beauty of Australia.” The lineup includes Botany Essentials, Intraceuticals, Advanced Naturals, Urban Rituelle, Li’tya, Mirenésse, LM Naturals, Skin Doctors Cosmeceuticals, VitaMan and SunFX. Each brand is positioned at the premium end of the market.

“Australia is really an untapped resource for the U.S. consumer, and we felt that we needed to raise awareness,” said Betina Reid, senior export adviser for consumer products for Austrade. She noted that many Australian beauty lines mine indigenous Aboriginal ingredients and rely on natural botanicals. On the opposite end of the spectrum, its national science agency, Commonwealth Scientifi c and Industrial Research Organisation, provides research and ample inspiration for cosmeceutical skin care lines. Like most global markets, large multinational fi rms dominate Australia’s beauty sales. Reid said that imports from countries such as the U.S., France and Japan account for 80 percent of Australia’s current beauty market.

As it stands, the U.S.’s beauty industry dwarfs beauty sales in Australia, a country that has a population of about 21 million people, fewer than the state of California. Last year, the U.S. cosmetics and toiletries market reaped $50.2 billion in retail sales, compared with the $3.5 billion in retail sales generated in Australia, according to Euromonitor International.

The sheer size and scope of the market make it diffi cult for foreign-born, niche companies to plant a fl ag on U.S. soil, said Reid, who is based in Sydney. Commenting on the competitiveness of the U.S. market, she added, “We are very much in a situation of David and Goliath.”

To gather participants for the initiative — which she developed with her New York City-based colleague, Anjali Jain, business development manager for Austrade — Reid contacted roughly 800 Australian beauty companies. Approximately 25 fi rms responded to her query and from there Reid, Jain and the McEntyre Public Relations team whittled the list down to 10 companies.

Each company selected had some presence in the U.S. market, attractive packaging, comprehensive marketing materials and the capability to supply a large market.

“This is just the start for us,” said Reid, referring to the initiative. “If it’s successful in the U.S. market, we will replicate it in other markets,” she added, naming London as an example.

“The U.S. market will always be important to us,” said Reid, noting that the Australia-United States Free Trade Agreement, which came into effect Jan. 1, 2005, has made it easier for Australian companies to do business here.

Over the last two years, Skin Doctors, one of the companies participating in the initiative, has gained a foothold in emerging beauty channels in the U.S., including the Home Shopping Network, Pure Beauty and Ulta. The brand, billed as one of Australia’s fi rst cosmeceutical lines, is slated to enter Sephora doors early next year. Scott Walmsley, president of Ingenuity Inc., Skin Doctors’s U.S. distributor, said he expects the brand’s very specifi c, problem-solution approach to skin care to resonate with U.S. consumers. (See related story, this page.) Fellow Australian cosmeceuticals maker, Intraceuticals, also fi rst entered the U.S. market two years ago, targeting prominent dermatologists’ offi ces and spas. The line recently entered the N.V. Perricone M.D. fl agship on Madison Avenue, where it is being used for the store’s spa services. Madonna’s fondness for Intraceuticals’ oxygen facials helped bring the brand into the limelight, noted Deirdre Burke, national sales manager for the company.

She noted that while Intraceuticals is not pursuing retail distribution, the Austrade initiative will help beauty editors become more acquainted with the professional brand.

VitaMan, the men’s range that uses natural ingredients, aims to gain ground in

high-end retail stores, but will use its Web site to introduce itself to U.S. consumers. Its e-commerce site, vitamanglobal.com, is slated to launch later this month and will feature digital “beautiful Aussie lasses” to guide men through the shopping experience, said Glenn Kiddell, co-founder of VitaMan. Over the last few years, the eight-year-old men’s line has extended its international reach and is now available in Galeries Lafayette and Le Bon Marché in Paris, Harrods in London and Joyce Beauty in Hong Kong. Kiddell echoed Reid’s David-and-Goliath analogy, saying, “We’re up against the big boys, but we are more than confi dent that our brand stacks up. As we say, we are uniquely Australian.” He added that VitaMan supplies actor Hugh Jackman with its products and has approached the Australian native to be the face of the brand in the U.S. market.

Lara Deutsch, co-creator of Stem Organics, an Australia-based line sold in the Theory fl agship in Manhattan and select beauty boutiques, said the brand was invited to participate in the initiative, but declined because of the inroads it has already made here. Stem Organics is slated to launch at Studio at Fred Segal this month. Commenting on the challenges of the U.S. market, Deutsch said jokingly she had to borrow from the CIA’s playbook to determine who the decision makers were and how to contact them. She does feel, though, that U.S. consumers are more receptive to unknown, niche brands than her fellow countrymen. “In the U.S. market, consumers are very open to looking for new things. Australian consumers are generally looking for brands that have fi rst established themselves elsewhere,” said Deutsch, adding that Stem’s success in the U.S. has helped in its home market as well.

Reid of Austrade declared, “The U.S. market is probably our Holy Grail. Everybody in Australia wants to make it in the U.S.”

A select assortment of Skin Doctors’ problem-solution products.

PHOT

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ADDING UP BEAUTYBrands in the

Austrade initiative include VitaMan, Li’tya and Urban

Rituelle.

9WWD, FRIDAY, AUGUST 10, 2007

WWD.COM

Burt’s Bees Sets Natural StandardNEW YORK — Last May, Mike Indursky, chief marketing and strategic officer of Burt’s Bees, announced a plan to establish a natural standard. The term natural is being used in more and more products, but without testing to ensure promises are delivered.

In just three months, his vision is rapidly coming into focus. “It is really heating up,” said Indursky, who is working in conjunction with the Natural Products Association, Aubrey Organics and Dr. Bronner’s. “We are developing the organization and goals.” The effort got its biggest boost in the last few months thanks to Burt’s Bill, an online consumer petition in support of developing an industry standard for the use of the word “natural” in personal care. Recently, Sen. Tom Harkin (D., Iowa) signed the “bill.” He joined 25,000 others who have used the online poll, which can also be physically signed and sent in.

Indursky and NPA hope the full descriptions of what makes a natural product and a seal will be established by the end of the year. The goal will be that companies will achieve

that important label if most of their product lineup meets the requirements. Plans call for a major consumer launch. “Arriving at a clear defi nition of the word natural is something both our industry and consumers want,” explained NPA’s Daniel Fabricant, Ph.D. and vice president of scientifi c and regulatory affairs.

The timing is right, according to industry consultant Allan

Mottus, who believes the natural movement is “really here this time.” Natural personal care is growing at a rate fi ve times that of other businesses, said retailers. Brands are popping up left and right promising “natural” benefi ts. Indursky, and others, don’t want consumers to lose confi dence if they are disillusioned with an item that is termed natural. “What will kill the natural business is if companies are marketing products that really aren’t natural,” he said.

One of the key reasons Indursky set out to establish a standard is simply because many consumers already think there is one. Seventy-eight percent of natural personal care products are regulated and 97 percent of consumers think they should be, plus 86 percent believe there should be a label or symbol to signify something is deemed natural. Ideally, natural items will be made with at least 95 percent natural ingredients and contain no ingredients with any potential suspected human health risks. Ingredients that should never be used include parabens, sulfates, petrochemicals, glycols, phthalates, diethanolamine

or DEA and formaldehyde.

H o w e v e r , Indursky said there are personal care categories where totally natural is not an option, such as

hair care. Hair care requires certain ingredients to be effective and the natural alternatives don’t deliver desired results, explained Rite Aid Corp.’s category manager Kathy Horton, who believes there are categories where shoppers won’t give up performance. Indursky said synthetic is a last resort if there are no viable natural options and if the synthetic has no human health risks.

In addition to manufacturers who are in favor of standards, retailers are embracing the concept, too. “Consumers are asking for it and it is not a different consumer than the ones already in the store,” Indursky said.

After ingredients are tackled, Indursky and others hope to target excess packaging and other non-environmentally friendly aspects of personal care.

When Indursky isn’t piloting natural qualifications or helping Burt’s Bees’ rapid expansion, he can be found as a lead singer in The Beemones, a group of Burt’s Bees representatives who croon songs such as “I Want Pollination” and “You’re Going to Sting That Girl.” The group took fi rst place at the second annual Triangle Corporate Battle of the Bands charitable competition, held in Durham, N.C., in May.

By Kavita Daswani

LOS ANGELES — As Fa Park, presi-dent of New Jersey-based Incoco, was surveying the cosmetics market to see what was missing, he real-ized something crucial: Despite all the advances made in the in-dustry in the past few years, nail polish still didn’t dry that much quicker.

“The drying process takes a long time and is still dif-ficult,” said Park. “It hasn’t p r o g r e s s e d that much.”

So Park i n v e n t e d Dr y Nail Appliqué, a self-adhesive nail enamel that is de-signed to have the look of a full man-icure, but can be done in a few minutes — anywhere.

Park said creating the product was a challenge because the enamel color strips that make up his line had to contain an actual base coat, color coat and top coat, and had to apply easily and be dry to the touch.

“It was brand new engineering and required a lot of production know-how,” Park said of the line, which is made entirely in the U.S.

The Dry Nail Appliqué is current-ly shipping to some 5,800 Walgreens across the U.S. It comes in 20 differ-ent colors, such as Pink Satin, Red Velvet, Berry Rich and Chocolate, as well as six French manicure shades.

“Right now, we are exclusively at Walgreens, but we are targeting other mass retailers for distribution early next year,” he said.

Each kit, which comes packaged in slender metallic blue packets, contains 20 color strips of various sizes, a cuticle stick, mini fi le and polish removal cloth; materials enough for one to two full-hand ap-plications, depending on nail size. Application requires pushing back the cuticles with the stick, and then choosing the strip that fits most closely with the nail — smallest for the pinkie, larger for the thumb. A clear adhesive cover is peeled off, and the color strip is placed on the nail. Any excess is fi led off. Park said he designed the strips to stay intact on the nails for up to two weeks. There is also a small sample pack for an initial trial.

“We want it to look like the woman has just come out of a nail salon,” said Park. “The idea is to offer the total package of a manicure in a packet. It’s like a new delivery system for a full salon manicure.”

Park said he was planning to add 20 more colors over the next year, working with a European color consultant.

“We want to offer more trendy colors to appeal to the young genera-tion,” he said.

Incoco Eliminates Nail Drying Time

GREEN ACRES: Aveda is aiming to overhaul the environment at several shows planned for fashion week in September. The brand plans to partner with Rodarte, 3.1 Phillip Lim and others to create “green” backstage environments. This will include not serving bottled water backstage in recognition of the environmental impact of producing and shipping the bottles, as well as their ultimate resting place in landfi lls; serving organic and locally sourced food backstage, and providing good old New York City tap water to models and hair and makeup teams. Aveda also partnered with Warner Bros. Independent Pictures on the international release of Leonardo DiCaprio’s environmental documentary, “The 11th Hour,” in Los Angeles earlier this week.

SPA DAY: Spa Finder hosted its fi rst-ever Aspen Spa Day in downtown Aspen, Colo., on July 28. The one-day event attracted more than 2,500 visitors who tested products, participated in treatment demonstrations and sampled award-winning cuisine. Over 25 of the world’s leading spas and spa lifestyle companies participated in the event. As a spin-off to the event, Spa Finder will host The Spa Experience, a larger-scale consumer spa event in New York’s Vanderbilt Hall in Grand Central Terminal from Oct. 31 through Nov. 3.

CLIMATE CONTROL: The all-natural body care company Kiss My Face has teamed up with the Alliance for Climate Protection, founded by former vice president Al Gore, to help raise awareness about the urgency of climate crisis. Beginning Wednesday, Kiss My Face will launch their exclusive line of Lip Action lip balms at Whole Foods Market stores nationwide. One dollar from the sale of each balm will be donated to the Alliance for Climate Protection. Lip Action lip balms retail for $3.49.

COLORING DISCOUNTS: Throughout the month of August, downtown Manhattan salon Arrojo Studio is offering a special 25 percent off

hair color services to those who have never had their hair colored. Nick Arrojo, owner and head of the Arrojo Studio team, explained this promotion by saying “hair color adds dimension and fl are to a great haircut giving you a youthful, fresh and modern look with that wow factor that everyone wants.” This offer includes hair coloring for single process and highlights. Customers interested in scheduling an appointment can call the salon and just mention “hair color offer.”

ON-CALL BEAUTY: Plastic surgeon Shirley Madhère is bringing her services to the homes of her patients this fall with the launch of Beauty On-Call. Assisted by a nurse, facialist, nail technician, hairstylist and personal trainer, Madhère will visit clients’ homes to perform a variety of personalized treatments from minor aesthetic medical procedures such as Botox to manicures. Services will range in price from $200 to $400 for manicures and pedicures to $1,000 to $5,000 for medical procedures. Beauty On-Call services will be available in limited areas including New York City, the Hamptons on Long Island and Los Angeles.

COS BAR EXPANDS: The Cos Bar beauty boutiques are currently undergoing rapid expansion. The fi rst boutique was created by Lily Garfi eld in 1976 in Aspen, Colo. Now, eight stores later, The Cos Bar plans to open a store in Edina, Minn., this month, and two more California stores, in Palm Desert in the fall and in Malibu in spring 2008.

TRAVELING MADE EASY: ESPA is making it easier for consumers to travel with its products this fall with the launch of ESPA Traveler. In September, ESPA is launching a travel-size skin care set designed to abide by Transportation Security Administration regulations. Consumers can personalize their Traveler kits by choosing from 27 of ESPA’s most popular items. With any purchase of a travel product, consumers will receive a clear plastic bag that also is in line with TSA restrictions. Prices for ESPA Traveler items range from $12 to $48. Leather travel cases will also be sold for $130 for the “His” size and $140 for the “Hers.”

SNIPPETS

Incoco’s Dry Nail Appliqué nail enamel.

“Arriving at a clear defi nition of the word natural is something both our industry and consumers want.” — Daniel Fabricant, Ph.D., Natural Products Association

Sen. Tom Harkin signs Burt’s consumer petition.


Disney Uses Scents to Tap TweensBy Rachel Brown

LOS ANGELES — What does tween spirit smell like?

If Disney Consumer Products has its say, the answer will be orange creamsicle this fall. That’s the scent of the debut High School Musical fragrance, which is hitting shelves in wide release timed to profi t from the mania surrounding the Aug. 17 airing of the popular Disney Channel original movie’s sequel.

“There is defi nitely a bigger window of opportunity now [because of the] momentum the Disney Channel started garnering with the That’s So Raven franchise and is building up with Hannah Montana, High School Musical and Cheetah Girls,” said Johanna Mooney, director of food, health and beauty at Disney Consumer Products. “We are trying to respond to those girls’ needs to have products that feed the lifestyle they aspire to.”

Disney Consumer Products cracked the tween perfume market two years ago with That’s So Raven and continued to expand its presence earlier this year by launching the Hannah Montana fragrance at Club Libby Lu in March. According to Rebecca Killian, senior vice president of creative and marketing for Boom LLC, the Disney Consumer Products licensee that develops the fragrances, thousands of Hannah Montana units are sold per week.

“Hannah Montana has surpassed our expectations. We are cautiously excited to see how High School Musical performs,” said Killian. “With all that Disney is doing with that [High School Musical] brand, it is hard to think it is not going to be just as successful.” Disney Consumer Products declined to project sales for the High School Musical fragrance.

The High School Musical items have begun to be shipped to Claire’s Stores Inc. locations and will be introduced in Kmart and Wal-Mart for back-to-school and holiday, when gift sets are critical to the merchandising strategy. The High School Musical fragrance is $12 for 1 oz. and $7.50 for 0.5 oz.

After That’s So Raven rolled out, Disney Consumer Products evaluated its approach to the beauty industry last year by conducting a study of 150 tweens to determine their preferences.

Mooney outlined several fragrance fi ndings: girls gravitate toward fruity notes; they typically mirror their adult women counterparts in having 2.7 fragrances on rotation and they desire age-appropriate products. Clinique Happy, New York Chic and L.A. Style by Mary-Kate and Ashley Olsen, and Britney Spears’ Curious are often among the perfumes in girls’ fragrance stockpiles.

“We knew that moms were very careful about what they let their girls wear, but we were pleasantly surprised to know the girls also want that,” said Mooney. “It is important that the girls feel the moms will approve.”

In the pricing, Disney Consumer Products discovered that, although a few girls will buy $50 perfumes, sticking to around the $12 mark drives volume. And in packaging, featuring images of the Disney Channel show’s cast members — stars of “High School Musical” include Zac Efron, Ashley Tisdale and Vanessa Hudgens — is important for customers to identify with the products.

“They see the High School Musical kids jumping up in the air [on the box] and are like, ‘Grab that,’” said Killian.

NEW YORK — Sally Beauty Holdings Inc. saw third-quarter profits slide 7.6 percent, and below consensus estimates, on higher interest ex-pense to $13.4 million, or 7 cents a diluted share.

Earnings in the same period a year ago, when Sally was part of Alberto-Culver Co., were $14.6 million.

Wall Street expected the company to report third-quarter earnings of 9 cents a diluted share on revenue of $633.5 million.

Sales grew 5.9 percent to $634.9 million from $599.5 million in the year-ago period. Sales of the fi rm’s Sally Beauty Supply business ac-counted for 63.5 percent of revenues, while the company’s Beauty Systems Group distribution business gener-ated 36.5 percent of sales.

Third-quarter comparable-store sales of the 2,676-store Sally Beauty Supply chain rose 3.4 percent, while comp-store sales at BSG, which com-prises 860 company and franchised stores, increased by 9.2 percent.

Gary Winterhalter, president and chief executive offi cer of Sally Beauty Holdings, noted during a conference call with analysts that Sally Beauty Holdings continues “to add new [hair care] brands” since L’Oréal announced its acqui-sition of distributor Maly’s West Inc. last month and Beauty Alliance in the spring. The brands, he noted, have joined BSG because they do not want to be distributed by com-petitor L’Oréal. These brands in-clude Paul Mitchell in Southern California, and — in certain states and BSG markets — Goldwell, KMS, Farouk, Tigi, Nioxin, Rusk and Kenra.

Still, this year is expected to be a “challenging” one for BSG as it “rebuilds” its margins and distri-bution base, said chief financial offi cer David Rea. Last year, dis-tribution of L’Oréal brands by BSG was ended and BSG lost $30 million in L’Oréal-related sales. This loss has been partially offset, however, by $14 million in revenues of non-L’Oréal brands and the 2006 acqui-sition by BSG of U.K. distributor Salon Success, which has added about $5 million.

— Matthew W. Evans

Sally Beauty Net Dips 7.6 PercentIn Third Quarter

Every brand needs a standout product, one that consumers tell their friends about and which, on occasion, generates

a rush to stores and eventual sellouts. Beginning in October, Kérastase is betting on a styling-treatment product called Ciment Thermique to elevate the brand to a level where Kérastase could soon be known as much for its styling

capabilities as it is for hair care.To date, Kérastase is often

affiliated with the crème de la crème of shampoo and conditioners, one that’s built a cult following for its range that’s formulated to target a variety of hair care needs such as colored and dry hair.

The new item will launch under Kérastase’s Resistance range, and targets weak, fi ne and aging hair, and is to be used after a shampoo, from root to tips. It is activated by heat.

As a styler, Ciment Thermique is designed to leave hair smooth and shiny. As a treatment, it is

formulated to strengthen hair with Vita-Ciment Topseal, which combines technology that restructures hair from

within while also sealing hair with a protective layer.According to Kevin Scerbo, national training director

for Kérastase, the new styler-treatment is designed to last up to fi ve shampoos, but is even more effective if you apply heat. “We encourage clients to use a heat styler,” Scerbo said. Because of Ciment’s “tremendous styling properties, results are instantly tangible,” he added.

Shane Wolf, vice president of marketing at Kérastase, explained that in order to make a big impact with stylists, the new styler is launching to salons without educational materials for professionals. Instead, stylists will receive Ciment in large quantities to use as samples “to build demand before the launch. We don’t need the marketing component to tell the story. The results will tell the story.” However, point-of-sale materials, a requisite for consumer education, will be distributed, explaining tips, techniques and the residual effects of Ciment after shampooing.

Ciment will retail for $34 and become the 16th styling product within Kérastase, and the fourth in the Resistance range. Kérastase is sold in nearly 850 salons in the U.S. and according to industry sources could generate as much as $50 million in wholesale sales to salons in 2007, a double-digit increase over last year. Ciment is expected to generate as much as $3.5 million in wholesale sales to salons, according to industry sources, its fi rst year on shelves.

— Andrea Nagel

Kérastase Aims to ‘Ciment’ Top Spot in Style

Cosnova Launches Into U.S. With Essence BrandGerman beauty company Cosnova

aims to bring its “Essence” to the U.S. this fall, as the company plans to enter the market for the first time.

Founded five years ago, Cosnova wants to offer consumers high-quality products at a budget price.

“We saw an opportunity for growth in the U.S., and since the market [here] hasn’t been growing, we felt the time is right. We’ve already proven in Europe that our products work across differ-ent cultures and races,” said Javier Gonzalez, Cosnova’s general manager.

Cosnova offers Essence, a cosmet-ics brand for the younger set between the ages of 14 to 22, and Catrice, a cos-metics line for a more sophisticated consumer ages 30 to 45. Gonzalez said Essence is the second largest cosmet-

ics brand ranked by a June report from A.C. Nielsen in Germany, following Maybelline, which ranks number one.

While products in the Essence col-lection range from $1 to $3.50, Catrice items retail from $1.50 to $5.

Cosnova gave U.S. retailers a pre-view of its products late last month at Efficient Collaborative Retail Marketing’s Cosmetics & Fragrance Effi cient Program Planning Session.

The products are available in 20 countries and sold in about 10,000 doors, including European department stores such as Germany’s Kaufhof and France’s Galeries Lafayette, in addition to food, drug and mass retailers.

In addition to trying to enter the food, drug and mass market in the U.S. this fall, the company has plans to ex-

pand in the U.K. and Scandinavia next year.

Although company executives wouldn’t comment, industry sources estimate that Cosnova’s two brands will generate about $150 million in retail sales in Europe by yearend. The compa-ny has plans on doubling the size of its European business over the next three years, making its North American busi-ness account for half of its European business, said Gonzalez.

The Essence assortment includes everything from color cosmetics for the eyes, lips, face and nails to skin care items for the face and hands. Essence’s PocketBeauty assortment of treatment products for the face and hands in-cludes items such as cleansing prod-ucts, combination and problem skin

products, cucumber eye and face pads and vitamin eye gel pads.

According to Gonzalez, the company routinely updates the product assort-ments for both brands, as well as releas-ing 30 limited edition promotional sets per year.

— Michelle Edgar

The HBA Report WWD.COM

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Select new Essence items.

Beauty items from DisneyConsumer Products.

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Kérastase’sCimentThermique.


Comps Fall Short in Sluggish JulyBy Liza Casabona

Weak consumer traffic caused the majority of apparel retailers to miss same-store sales ex-

pectations for July, particularly in the teen sector, but department stores and discounters continued to outperform.

As tracked by WWD, mass merchants posted an average gain of 2.5 percent and department stores increased 2.3 percent, but the specialty sector fell by 2 percent.

Meanwhile, macroeconomic trends hammered the market on Thursday as concerns over credit markets and subprime mortgages continued to dog stocks. The Dow Jones Industrial Average plummeted more than 387 points, or 2.8 percent, to close at 13,270.68. The Standard & Poor’s 500 index fell 44.40, or about 3 percent, to 1,453.09.

A number of retail stocks succumbed to the larger market trend and closed the day down. Those companies included Wal-Mart Stores Inc., Target Corp., Macy’s Inc., Nordstrom Inc. and J.C. Penney Co. Inc.

Several retailers cited the shift of back-to-school, driven by later school start dates, as the cause of soft comp-store sales. American Eagle Outfitters Inc., Abercrombie & Fitch Co. and Aéropostale Inc. all did much worse than expect-ed, posting declines of 6, 4 and 11.9 per-cent, respectively.

The specialty sector posted soft results for the month, with more than half of specialty chains posting declining same-store sales.

Teen retailers fared the worst, missing expectations that were already lowered in anticipation of soft sales in July. In the days leading up to the release of sales numbers, analysts’ estimates had dropped precipitously. The actual numbers report-ed Thursday show the segment “cratered” said Retail Metrics’ Ken Perkins in a note.

“These very weak results are [because] of some calendar shifts as well as later back-to-school starts, but the extent of the weakness may cause some concern about the back-to-school selling season which lies before us,” Perkins said.

The teen sector, and other stores that lagged in July, could also be suffering from a lack of fashion newness, Donald Soares of Capgemini’s retail practice pointed out.

Bright spots in July came from better-than-ex-pected results in the department store sector, dis-counters and at warehouse clubs. Neiman Marcus Group Inc., Nordstrom, Saks Inc. and J.C. Penney posted comp gains of 8.3, 9.4, 14.9 and 10.8 percent, respectively, and all met or exceeded consensus estimates. Target reported a 6.1 percent increase. Wal-Mart’s discount stores climbed 1.3 percent, beating expectations that it would only increase 0.9 percent.

Neiman Marcus also released preliminary an-nual revenues Thursday. The company reported total revenues of $4.4 billion, up 8.9 percent over last year. Comp-store sales for the 52-week period increased 6.7 percent over last year.

“Department store comps mostly beat consen-sus. Broadly speaking, we were also encouraged by other broadline retail results, and though specialty apparel was a little light on July sales, markdowns appear to be relatively in check,” said Michelle Tan, analyst, UBS, in a note.

In general, July tends to be a transitional month, characterized by early b-t-s and a clearing out of summer merchandise.

“As we have noted earlier this year, a consumer ‘soft patch’ began in February 2007 and the lat-est data suggested it continued through July,” said Michael Niemira, chief economist and director of research for the International Council of Shopping Centers Inc. ICSC’s same-store sales fi gures for chain stores increased 2.6 percent year-over-year in July. Housing market issues continue to drag consumer demand down, Niemira said. “Shoppers might feel some relief from high gasoline prices, but it’s unlikely to generate much of a bounce in back-to-school spending and beyond. The looming credit crunch is among the forces likely to damp-en spending going forward,” said Frank Badillo, senior economist for TNS Retail Forward and di-rector of the Retail Forward KnowledgeBase.

“I don’t think these results in July indicate that the whole fall season is lost,” said Howard Tubin, director of equity research, RBC Capital Markets. Despite the comps misses, earnings are intact, in-

ventory is in a good position and it remains to be seen what the shift of b-t-s sales into August will do for the season overall, he said.

Teen retailers weren’t the only ones to fare badly. Women’s apparel retailers didn’t do well either. AnnTaylor Stores Corp. was down 5 percent, at the lowest end of analyst expectations and well below consensus estimates of a 2.6 percent decline.

Results at Gap Inc. were mixed. Old Navy comps dropped 18 percent, well below consensus estimates that expected a 7 percent drop. Banana Republic posted a 1 percent increase, but also missed expec-tations that it would gain 2 percent. The Gap divi-sion increased same-store sales by 2 percent, beat-ing a predicted decline of 3.3 percent.

Limited Stores had a 10 percent increase in comps, while results at Bath & Body Works and Victoria’s Secret declined 2 and 4 percent,respectively.

Department stores posted a solid July. UBS’ Tan pointed out that Nordstrom and Saks both posted strong gains, J.C. Penney and Macy’s were both on plan, and Kohl’s Corp., though light on sales, reiterated its earnings guidance.

In particular, she said, Nordstrom’s Anniversary Sale, which previews fall merchan-dise, was “highly successful.” Historically the sale has been a good indicator of business trends in

the fall, she said.“Nordstrom’s stunning 9.4 percent comp for

July, with a 7.9 percent comp for its Anniversary sale — as well as big comps from other high-end department stores (8.3 percent at Neiman Marcus, 14.9 percent comps at Saks) — validates our view that the affl uent consumer continues to shop, driven by luxury and contemporary brands,” said analyst Dorothy Lakner, CIBC, in a note.

Saks’ 14.9 percent gain also beat expectations. Analysts expected the company to report a comp increase of 10.6 percent.

Macy’s was among the department stores that declined, reporting a drop of 1.4 percent. The re-sults were slightly better than expected; analysts predicted the company would post a 2.1 percent decline. Macy’s continues to struggle more than the luxury department stores due to its reliance on struggling categories like home appliances and home decor and its middle-income consumer base, analysts said.

Other department stores also reported de-clines. The Bon-Ton Stores Inc., Dillard’s Inc., Gottschalks Inc. and Stage Stores Inc. saw results down 7.6, 6, 3.9 and 1.7, respectively.

Among the mass merchants, all posted positive same-store sales with the exception of Stein Mart Inc. TJX Cos. Inc. reported a comps gain of 5 per-cent and Ross Stores Inc. was up 1 percent, but missed company projections. Stein Mart reported a decline of 3.4 percent for the month.

Among the warehouse clubs, Costco Wholesale Corp. was up 6 percent. BJ’s Wholesale Club Inc. was up 1.5 percent, but missed projected estimates that it would grow 3.3 percent in July. Sam’s Club beat expectations to post a 5.1 percent increase.

Overall, analysts said, August will be a stronger indicator of the success of this year’s b-t-s season and the resilience of consumer spending for the second half.

“Looking forward to August sales results, we expect industry comp-store sales will increase by 2 to 2.5 percent, which is largely a continuation of the recent trend,” ICSC’s Niemira said.

JULY JUNE MAY

2007 2006 2007 2007 % Change % Change % Change

DEPARTMENT STORES

BON-TON -7.6 12.2 -8.0 1.2

DILLARD’S -6.0 -3.0 -1.0 -2.0

MACY’S INC. -1.4 3.3 -2.7 -3.3

GOTTSCHALKS -3.9 -0.7 -4.3 -3.8

KOHL’S 0.0 5.9 -4.9 10.5

NEIMAN MARCUS 8.3 8.6 6.4 6.6

NORDSTROM 9.4 5.3 2.0 6.3

J.C. PENNEY 10.8 4.9 -1.5 -2.0

SAKS 14.9 3.4 -5.6 37.5

STAGE STORES -1.7 3.5 1.4 1.7

AVERAGE: 2.3 4.3 -1.8 5.3

SPECIALTY CHAINS

ABERCROMBIE & FITCH -4.0 3.0 2.0 -5.0

AEROPOSTALE -11.9 -1.9 0.2 1.9

AMERICAN EAGLE -6.0 7.0 8.0 5.0

ANN TAYLOR -5.0 5.1 -8.4 -4.6

BANANA REPUBLIC 1.0 0.0 6.0 3.0

BATH & BODY WORKS -2.0 16.0 -4.0 -3.0

BEBE -6.3 10.0 -5.4 -3.0

BUCKLE 7.6 -7.6 13.3 8.8

CACHE 6.0 2.0 1.0 -2.0

CATO -5.0 1.0 0.0 2.0

THE CHILDREN’S PLACE -1.0 15.0 -4.0 4.0

CHICO’S FAS -6.7 4.9 -7.3 -2.9

CHRISTOPHER & BANKS 4.0 10.0 3.0 4.0

DEB SHOPS -2.0 -9.6 1.9 0.2

DRESS BARN 3.0 5.0 2.0 10.0

GAP (U.S. STORES) 2.0 -13.0 -9.0 -7.0

HOT TOPIC -7.4 -7.2 -4.0 -6.1

LIMITED BRANDS (TOTAL APPAREL) 10.0 -10.0 6.0 5.0

MOTHERS WORK -9.4 3.9 -5.4 -3.6

OLD NAVY -18.0 0.0 -7.0 -3.0

PACIFIC SUNWEAR -4.6 -10.6 4.5 6.4

RITE AID 1.6 4.1 0.7 1.7

UNITED RETAIL -6.0 4.0 -1.0 4.0

VICTORIA’S SECRET -4.0 13.0 8.0 5.0

WALGREEN 7.2 9.7 5.1 6.4

WET SEAL -7.2 6.4 0.7 1.9

WILSONS -2.2 -18.3 -9.4 -25.0

ZUMIEZ 9.7 8.4 13.7 11.2

AVERAGE: -2.0 1.8 0.4 0.5

MASS MERCHANTS

BJ’S WHOLESALE CLUB 1.5 1.9 5.3 4.1

COSTCO 6.0 4.0 5.0 7.0

ROSS STORES 1.0 7.0 4.0 5.0

STEIN MART -3.4 5.2 -2.9 2.5

TARGET 6.1 5.5 3.3 5.8

TJX COS. 5.0 1.0 5.0 5.0

WAL-MART (DISCOUNT STORES) 1.3 4.2 1.6 0.3

AVERAGE: 2.5 4.1 3.0 4.2

TALLY:

UP 20 33 25 30

FLAT 1 2 1 0

DOWN 24 10 19 15

TOTAL 45 45 45 45

SOURCE: COMPANY REPORTS

JULY SAME-STORE SALES

Aéropostale’s comp-store sales fell 11.9 percent in July.

12 WWD, FRIDAY, AUGUST 10, 2007WWD.COM

Media/Advertising

WINNERS AND LOSERS: The fi rst half of 2007 proved on average to be an OK one in circulation terms for niche, fashion, fi tness, and teen titles, but wasn’t so great

for more general interest pubs, according to fi gures fi led with the Audit Bureau of Circulations. ABC will release the full list of magazine circulation fi gures on Monday.

In the latter category, Vanity Fair struggled this period to top its strong newsstand performance in the fi rst half of 2006, posting a 15.7 percent drop in single-copy sales. “In 2006, Vanity Fair had the best newsstand year in the magazine’s history. So 2007 was up against a number of very successful issues,” said editor in chief Graydon Carter. “And some of this year’s covers just didn’t do as well as we hoped. There is, unfortunately, no science to this.” Perhaps one explanation could be that men don’t sell as well for the pop culture monthly — Bruce Willis, Owen Wilson, Chris Rock, Leonardo DiCaprio and James Gandolfi ni all appeared on the cover in the fi rst half, compared to female cover subjects like Naomi Watts, Lindsay Lohan and Teri Hatcher in last year’s fi rst half. “It depends on the man, of course, but as a rule, women do sell better than men. Unless that man is Brad Pitt,” quipped Carter. In fact, Demi Moore, the only woman who appeared on its cover alone this period, sold best.

But Elle reported a 9.1 percent increase in single-copy sales, while Vogue posted a 4.6 percent uptick in newsstand sales, to 452,207. Lucky posted an 11.9 percent newsstand increase, to 250,240, and an overall circulation increase of 9.4 percent. Shape reported a 2.2 percent growth in total circulation, to 1.7 million, and Women’s Health continued its strong circulation growth, reporting total paid circulation of 786,892. The title is raising its rate base to 1.1 million in January.

In contrast, general interest women’s magazines reported softness on newsstands. Marie Claire posted a 20.1 percent decline in newsstand sales, to 328,200, despite a return to more traditional cover treatments compared to last fall’s edgy experimentation by editor in chief Joanna Coles. Glamour posted a 7.3 percent drop on newsstands, to 755,289.

Redbook saw a 12.9 percent decline in single-copy sales for the fi rst half, to 244,500. This comes after a 28.6 percent drop in the second half of 2006 and a 19.9 percent decrease in the fi rst half of last year compared to the same period in 2005. Though such declines could rattle the average editor in chief, Redbook’s Stacy Morrison said she’s not worried. “It is a number. It is one number that is one part of many pieces of our overall strategy.” Meanwhile, according to Morrison, the Redbook reader isn’t wasting time thumbing through the racks. “When we’re talking about a busy 35-year-old woman, she’s the least likely person to dally at a newsstand.”

In the teen category, circulation fi gures seem to prove that teens do indeed read magazines. Cosmogirl’s newsstand grew 4.6 percent, while total circulation rose 3.1 percent, to 1.4 million, and Teen Vogue posted a 9.1 percent bump in newsstand sales, while overall circulation remained fl at at 973,172. At Seventeen, single-copy sales increased 8.5 percent for the period and total circulation grew nearly 2 percent to 2 million. Editor in chief Ann Shoket took over the title in January, and its best-selling issue was, happily, Shoket’s fi rst, featuring Avril Lavigne. Shoket succeeded Atoosa Rubenstein.

Finally, the men’s magazine circulation results varied, with Details and GQ reporting the strongest growth. Both Condé Nast men’s titles posted 9.3 percent gains in total circulation, to 457,186 and 931,694, respectively. Details also reported strong newsstand growth for the period, an 11.6 percent increase, to 75,365. But the new owners of Maxim and Stuff have their work cut out for them. As private equity fi rm Quadrangle Group prepares to acquire the titles along with Blender in the next week or so, both reported shrinking circulation. Rumors continue to swirl about Stuff’s eminent closure once its new owners take hold, and its numbers could signal that the end is near. Newsstand sales fell 33.9 percent, to 170,747; overall circulation declined 3.9 percent. Just two years ago, young men showed stronger affi nity to its beer and babes content — Stuff averaged more than 300,000 single copies back then. — Stephanie D. Smith and Irin Carmon

NEWSSTAND ’07 NEWSSTAND ’06 % CHANGE TOTAL CIRC ’07 TOTAL CIRC ’06 % CHANGE

FASHION

Allure 253,056 293,711 -13.8% 1,062,778 1,125,961 -5.6%Cosmopolitan 1,865,500 1,930,073 -3.3% 2,913,900 2,908,861 0.2%Elle 354,333 324,850 9.1% 1,072,729 1,054,854 1.7%Essence 254,698 279,717 -8.9% 1,089,465 1,104,854 -1.4%Glamour 755,289 814,443 -7.3% 2,262,242 2,248,961 0.6%Harper’s Bazaar 182,500 178,871 2.0% 722,000 733,096 -1.5%In Style 753,358 783,388 -3.8% 1,780,681 1,777,283 0.2%Lucky 250,240 223,585 11.9% 1,167,020 1,067,204 9.4%Marie Claire 328,200 410,998 -20.1% 970,000 955,222 1.5%Self 360,229 364,638 -1.2% 1,486,992 1,490,019 -0.2%Shape 376,684 374,789 0.5% 1,747,569 1,710,589 2.2%Town & Country 50,200 49,431 1.6% 461,500 462,271 -0.2%Vanity Fair 355,190 421,095 -15.7% 1,153,517 1,215,920 -5.1%Vogue 452,207 432,163 4.6% 1,301,575 1,293,185 0.6%W 38,974 50,688 -23.1% 457,996 472,148 -3.0%Women’s Health 275,284 181,008 52.1% 786,892 518,516 51.8%

TEEN

Cosmogirl 369,200 352,911 4.6% 1,446,800 1,403,409 3.1%Seventeen 355,500 327,631 8.5% 2,052,200 2,013,357 1.9%Teen Vogue 238,713 218,777 9.1% 973,172 972,555 0.1%

LIFESTYLE/SERVICE

Martha Stewart Living 307,300 300,194 2.4% 2,005,980 2,003,132 0.1%More 186,400 149,600 24.6% 1,254,273 1,155,627 8.5%O, The Oprah Magazine 887,800 890,965 -0.4% 2,436,700 2,336,426 4.3%Real Simple 398,137 393,861 1.1% 1,973,306 1,937,598 1.8%Redbook 244,500 280,816 -12.9% 2,374,200 2,370,705 0.1%

MEN

Details 75,365 67,539 11.6% 457,186 418,137 9.3%Esquire 108,500 102,200 6.2% 721,100 711,851 1.3%GQ 223,452 215,980 3.5% 931,694 852,510 9.3%Maxim 483,281 490,150 -1.4% 2,568,339 2,579,116 -0.4%Men’s Health 547,958 542,092 1.1% 1,816,671 1,856,161 -2.1%Men’s Journal 75,323 70,145 7.4% 707,808 703,047 0.7%Stuff 170,747 258,317 -33.9% 1,271,548 1,323,200 -3.9%

SOURCE: FIGURES PROVIDED TO AUDIT BUREAU OF CIRCULATIONS.

By Sharon Edelson

The mating dance between fashion retailers and like-minded brands has produced another partnership, this

time between Nylon magazine and Urban Outfitters. Nylon in September will launch in-store shops featuring apparel, music and books in Urban’s 113 locations.

“I always thought Nylon could have a store,” said Marvin Scott Jarrett, the magazine’s editor in chief. “I always wanted to have a store. To immediately have 100 stores is exciting.”

Kevin Lyons, creative director of Urban Outfi tters, said the idea of a Nylon shop appealed to him on several levels. “The big thing is that we’ve always been fans of Nylon and see it as the magazine representation of our stores,” he said. “Our cus-tomer reads Nylon. We don’t do marketing or advertising, so we don’t really seek partnerships, but when this opportunity came about we jumped on it. It seemed to really work.”

“[Urban] is targeting smart, hip, urban customers, as we are,” Jarrett said. “Their target is 18- to 25-year-olds. We talk to people in their 20s. The psychographics are very similar. They have stores in cities that we do well in.”

Nylon created a limited edition artist series of T-shirts for men and women ($36) for the shops. CDs reviewed in the magazine’s most recent issue will be on sale, along with DVDs and books. “We’re going to do a hoodie for holiday,” said Jarrett. “There’s talk about us doing housewares and we’re naturally growing into other areas such as jewelry. We’re also doing something with the MP3 player rival to the iPod, the Zune. We did a customized pink Zune that’s covered with graphics.”

Lyons said Urban is open to any product category Nylon suggests. On the draw-ing board are cut-and-sew sweatshirts, T-shirt dresses, hats, customized plates, pil-lows and other artist-series items. “As the line grows, both of us can grow together,”

he said.For Urban, part of the fun is Nylon’s ability to “get artists

to do great things,” Lyons said. “We’re taking advantage of Marvin’s love of music and Nylon’s affi nity for music.”

Jarrett, for example, arranged for “one of my favorite Paris bands, the Plasticines” to perform on Sept. 6 at Urban Outfi tters in Manhattan’s SoHo to kick off the Nylon-Urban partnership.

The challenge for Nylon, which has a rate base of 225,000, will be to keep its products special and avoid the pitfalls of commerciality. “I’ve seen other magazines do branded items and licensing,” Jarrett said, noting that not all attempts were successful.

Meanwhile, the retailer’s parent, Urban Outfi tters Inc., on Thursday said second-quarter earnings rose 24.2 per-cent, propelled by solid sales at its Anthropologie and Free People divisions. The Urban division was a drag on both comps and margins, with excess markdowns limiting gross margin expansion.

For the three months ended July 31, earnings at Urban Outfi tters Inc. rose to $31.9 million, or 19 cents a diluted share, from $25.7 million, or 15 cents, in the same year-ago period. Sales climbed 22 percent to $348.4 million from $285.6 million, while same-store sales grew 5 percent.

Earnings for the six months increased 33.2 percent to $61.2 million, or 36 cents a diluted share, from $46 million, or 27 cents, in the year-ago period. Sales jumped 19.3 per-cent to $662.9 million from $555.6 million. Same-store sales at Anthropologie advanced 14 percent, and at Free People,

28 percent, while comps at Urban fell 3 percent.— With contributions from Molly Fergus

Nylon Comes to Urban Outfi tters

FIRST-HALF 2007 CIRCULATION FIGURES

Nylon in-store shops will sell apparel, CDs, books and, of course, Nylon magazine.

MEMO PAD


Istithmar Wins Battle for BarneysContinued from page oneBarneys New York,” said H.E. Sultan Ahmed Bin Sulayem, executive chairman of Istithmar, in a state-ment. “Barneys is a unique global asset with incredible growth prospects within the luxury market. We look for-ward to working with Barneys as both a financial and strategic partner. We intend to grow the company in the U.S. and in international markets.”

David Jackson, chief executive offi cer of Istithmar, added in a telephone interview: “What is attractive about Barneys is its terrifi c management team and their tremendous longevity across all major positions. Our thoughts [are] to support the management team in ex-ecuting its business plan in the U.S. market….We are talking about other things to further capitalize on the strength of the management team.

“It’s a collaborative effort with management,” he emphasized.

Howard Socol, ceo of Barneys, will stay on, as well as members of his team. Socol signed a new employ-ment agreement with Istithmar in June. Specifi cs of the agreement were not disclosed.

“Istithmar and the emirate of Dubai have a long-term perspective for Barneys and the value creation it is ca-pable of. They are big believers [in Barneys],” said Marc Cooper of Peter J. Solomon Co., the investment banking fi rm advising Istithmar.

Barneys is about ready to launch its fl agship in San Francisco, with a Las Vegas fl agship set to open a few months later, said Jackson.

When asked about Barneys perhaps having a larger online presence, Jackson said the “Web site would be an opportunity for them to do more business online….The online business is an opportunity to reach new markets and further enhance the brands.”

But, while many analysts believe Istithmar wants to expand Barneys internationally, at least for the moment that isn’t a priority. Jackson on Thursday re-affi rmed what he said in a June interview about his fi rm’s plans for Barneys: There are international op-portunities for the retailer down the road, but the real growth for now is Stateside.

That coincides with Jones’ original plan for Barneys, which focused solely on a domestic strategy where the belief is there were still untapped possibilities in the U.S. And, while former Jones ceo Peter Boneparth has said Barneys could have $1 billion in sales, that, too, is based on projections for a domestic operation, sources familiar with the plan said.

Sources also said that, while the company recog-nized international possibilities, Jones as early as last year was already set on eyeing expansion of the Barneys Co-op format and fl agship sites in locales similar to San Francisco and Las Vegas.

Arnold Aronson, managing director of retail strategies at Kurt Salmon Associates, considers Barneys ripe for fur-ther expansion, both domestically and internationally.

“Barneys has been pursuing a very thoughtful and successful strategy of perfecting its core competencies of catering to aspiring luxury customers in the contem-porary genre, where they’ve carved out their customer niche,” said Aronson. “They’ve started to show they can develop separate business models catering to that kind of customer,” both domestically and abroad, he added.

During Jones’ ownership, Barneys fl agships opened in Boston and Dallas last year, and a new store in Seattle replaced a smaller one there this summer. Aronson said a fl agship in Las Vegas will open early next year, and one in Scottsdale, Ariz., in 2009.

“They’ve proven they can do a modifi ed fl agship in selective cities. These are selective opportunities that start to add up, when you look at the worldwide situa-

tion,” he said.In addition, he said the

Co-op has been able to “seg-ment off ” into a very special-ized, hot merchandise cat-egory. There are currently 14 Co-ops, and these can be rolled out in the U.S. “to up to 40 to 50 stores over time,” said Aronson. He said there is po-tential for Co-op stores to open selectively on an international basis, as well.

But even with more fl agships and Co-op locations, is Barneys worth close to $950 million? Certainly both Istithmar and Fast thought so. The Dubai fund inked an initial deal with Jones in June for $825 million, but then Fast stepped in with an offer of $900 million and a bidding war ensued.

After Istithmar matched the $900 million offer, Fast on Sunday raised the stakes a second time by upping its cash offer to $950 million, but that proved to be as high as it was willing to bid. The dol-lar amount of the current deal between Istithmar and Jones is $7.7 million lower than the $950 million offered by Fast, but it nets Jones $27.3 million more since there’s no break-up fee component in the Istithmar agreement. Had Fast submit-ted a new topping offer and had Jones accepted it, Jones would have been obligated to pay Istithmar a break-up fee of $34.7 million, much higher than the $22.7 million initially agreed upon in June.

Richard Kestenbaum, part-ner at investment banking fi rm Triangle Capital LLC., said, “A buyer justifi es the high valu-ation based on the expansion of the proven concept. The risk is that luxury stops being the place where the market is

moving toward.”The banker said that one way to recoup one’s invest-

ment is to build more fl agships because that’s where the retailer makes its money. But he’s also talking about fl agships smaller than the Barneys on Madison Avenue in New York and not too far away from Neiman Marcus stores. Kestenbaum believes the two can coex-

ist because Neiman’s is more clas-sic American, while Barneys is more edgy European. However, Neiman’s is increasingly pushing into the contemporary and denim areas that Barneys has long fo-cused on, and also has launched a format, Cusp, aimed at competing with Co-op.

But it’s not only increasing competition that Istithmar has to worry about with Barneys. The new owner also needs to hope that the seemingly insatiable demand for luxury, contemporary and pre-mium denim will roll on, and so far, the prognosis is good.

Dana Telsey of Telsey Advisory Group believes luxury brands will continue to grow. “The awareness for luxury brands is greater than ever. More nationalities are buy-ing luxury goods,” she said.

The emerging international customers from Eastern Europe, India and China are making a huge impact and make up an enormous market for spending, Telsey noted. “The luxury market totaled $150 billion world-wide annually in sales. It is expected to grow 6 to 7 per-cent annually for the next fi ve years.”

She noted Barneys has cachet merchandise and name-brand awareness. In the U.S., its fl agships will work best in a market with good tourist traffi c and wealthy demographics, she concluded.

Frederick Schmitt, an investment banker at the Sage Group, believes the contemporary market is still very strong. “Based on demographics, there’s a lot of very wealthy people out there and we don’t see that changing. The demographic trends support continued growth.”

Schmitt noted Baby Boomers and younger genera-tions tend not to be attracted to department stores, which is why specialty chains have been growing very quickly, and Barneys fi ts the age demographic. “Baby Boomers and those younger are more willing to spend money on apparel and accessories than their parents,” he said.

Analyst Jennifer Black of the fi rm that bears her name said the changing demographics are such that of-ferings in contemporary and premium denim will con-tinue to be must-have items.

“The ones that can afford it don’t want to look frumpy. They’re not going back to moderates. All Boomers want to look younger,” she said.

— With contributions from Lisa Lockwood, Whitney Beckett and Jeanine Poggi

Year

2004 Jones acquires Barneys for $401.6 million. Jones issues debt to fund the purchase and refinance existing debt. 2005 Jones adds 7.4 percent of additional square footage: four Co-ops and one outlet. 2006 Jones continues rapid growth, increasing square footage by 24 percent and adding two flagships. Jones invests heavily in IT and logistics. 2007 Jones announces square footage growth of 14 percent in 2007 and 15 percent in 2008.

Barneys Timeline

“What is attractive about Barneys is its terrifi c management team and their tremendous longevity across all major positions. Our thoughts [are] to support the management team in executing its business plan in the U.S. market.” — David Jackson, Istithmar

WWD.COM14 WWD, FRIDAY, AUGUST 10, 2007

The Council of Fashion Designers of America offered

a crash course in business for aspiring and up-and-coming de-signers Wednesday at Saks Fifth Avenue — the first of a three-part lecture series.

Four panelists — Peter Arnell, chairman and chief creative offi cer of the Arnell Group; Kimberly Grabel, Saks Fifth Avenue’s senior vice pres-ident, marketing; Nanette Lepore, and Kristina O’Neill, Harper’s Bazaar’s fashion news, feature di-rector — talked about their views on such subjects as celebrity gift-giving, unsolicited e-mails, runway shows and media-savvy consumers.

Arnell recalled how after studying architecture and engi-neering at Columbia University, he taught at Princeton University but agreed to work for Dawn Mello at Bergdorf Goodman designing windows and creating ads to help pay the bills. Through Mello he met Donna Karan, for whom he wound up creating ad campaigns.

“I don’t think anyone in this day and age can plot out a road map. They just have to really lis-ten and decide what they want to do,” Arnell said.

Lepore said her company has

always centered on product rather than marketing. One of her fi rst hires was a patternmaker — “I knew my limitations,” she said.

Fit trumps hype, according to Lepore. “Everyone is trying to rush to do a show. I think it’s ill-advised,” she said. “The stores give you one or two seasons and then you’re out if you can’t pull your own weight.”

Grabel said Saks looks for the combination of “a gifted, talented designer and a really good business partner.” Young designers need to have a clear sense of who they are designing for and the marketplace void they are hoping to fi ll.

O’Neill advised newcomers to pace themselves: “Let your résu-mé develop. Put your time in.”

Courting celebrities was an-other matter. When Lepore was starting her business, she worried about giving freebies to friends and family, but her accountant assured her that was good for business. “The more people wear-ing the clothing, the better, even though it’s not Sienna Miller and it’s your neighbor. Give them real-ly good prices or give them cloth-ing to get your message out there,” she said.

— Rosemary Feitelberg

By Kristi Ellis

WASHINGTON — House Ways & Means Committee chairman Charles Rangel (D., N.Y.) said he will make consideration of a free trade agree-ment with Peru a “top priority” when Congress returns next month, after receiving commitments from Peruvian President Alan Garcia that there will be changes in the country’s labor and environmental laws.

Rangel, who met with Garcia in Peru on Monday, and his commit-tee issued statements Wednesday and Thursday to build the case for allowing the trade deal to move forward.

“I was extremely pleased to hear President Garcia express such overwhelming support for the recent changes to the agreement, and I look forward to making the U.S.-Peru FTA a top priority for the com-mittee and Congress” in September, Rangel said in the statement.

Garcia and his government agreed to make “fi rm commitments to change Peru’s legal framework” in several key areas, such as pro-tecting the rights of workers to strike and organize, and including provisions dealing with antiunion discrimination, time-limited con-tracts and subcontracting, the Ways & Means Committee said.

Rangel’s announcement followed a month of strained tensions between Democrats and the Bush administration over four pending trade deals with Peru, Panama, South Korea and Colombia.

House Speaker Nancy Pelosi (D, Calif.), Rangel and other Democratic leaders issued a new policy statement in late June that dealt a blow to Bush’s trade agenda, saying they would not renew the President’s trade promotion authority, which expired June 30, and withdrew support for free trade pacts with South Korea and Colombia until they are revised.

The Democrats’ new trade policy drew a sharp response from U.S. Trade Representative Susan Schwab, who fi red off a letter to Pelosi on July 6 accusing the Democrats of considering imposing “unprec-edented new preconditions on our trading partners” by requiring the four countries to change their laws as a precursor to Congressional approval of the pending trade pacts.

Schwab stopped short of accusing the Democratic leaders of re-neging on another bipartisan labor and environmental trade policy deal the administration agreed to in May, but she urged Congress to honor the commitment. Under that deal, the administration agreed to make changes to the four trade pacts and to incorporate enforce-able labor and environmental standards, such as barring child and forced labor and upholding the right to collective bargaining.

Democrats had said the deals with Peru and Panama would be considered fi rst because the accords with South Korea and Colombia faced several unresolved issues.

Importers brought in $864.6 million worth of apparel and textiles from Peru for the year ending May 30. U.S. companies receive a duty free advantage when making apparel in Peru, Ecuador, Bolivia and Colombia under a current U.S. trade preference program, but Congress must vote to periodically renew the program. The FTA would make the benefi ts permanent.

By Georgia Lee

Swedish fast-fashion retailer Hennes & Mauritz plans to open a flagship in Atlanta in

March, its first location in the southeastern U.S.The two-level, 24,000-square-foot H&M store

will be in Atlantic Station, a mixed-use devel-opment that opened in the city’s Midtown area two years ago. The store will carry the full line of women’s, men’s and children’s clothing, acces-sories and lingerie, including basics, in-house designs and one-off collaborations with design-ers such as those in the past with Karl Lagerfeld, Stella McCartney and Viktor & Rolf and the up-coming line from Roberto Cavalli.

Atlantic Station, anchored by Dillard’s and Ikea and including about 60 specialty stores, is a 138-acre “mini city” with 12 million square feet of offi ce, retail, hotel, entertainment and residential space that has changed the land-scape of Atlanta. The area targets the city’s young affl uent professionals and empty-nesters with suburban lifestyles.

“The newly revitalized district is a growing retail, dining and entertainment destination that draws a strong number of shoppers, provid-ing a great fi t for H&M,” said Michael Oliverio, director of real estate for H&M.

Brian Leary, vice president of AIG Global Real Estate, developer of Atlantic Station, said H&M was

a perfect fi t for its audience.“Midtown Atlanta’s consumer demographic is

fashion-forward, urban, artsy and trendy,” Leary said. “It is exactly that of H&M. The store will serve the immediate area and bring people in from all over the Atlanta area.”

H&M has opened 130 locations as part of its U.S. expansion since the company’s New York debut seven years ago and has 1,400 stores in 28 countries.

By Whitney Beckett

Second-quarter earnings at the new PPR unit Puma AG dropped 10 percent on nearly flat

sales, due to increases in SG&A and depreciation and amortization.

PPR, which also owns Gucci Group, fi nalized its acquisition of 62.1 percent of Puma last month.

For the three months ended June 30, Puma’s net income fell to 45.2 million euros, or $60.9 million at current exchange, from 50.1 mil-lion euros, or $62.9 million, in the second quarter last year. Earnings per share fell to 2.82 euros, or $3.80, from 3.12 euros, or $3.92.

Sales for the quarter slid less than a percent to 542.8 million euros, or $731.8 million, from 546.6 million euros, or $686.8 million, last year, a period that included sales associated with the 2006 FIFA World Cup.

Losses in the Americas region, particularly the U.S. market, off-set gains in other parts of the world. Quarterly sales in the Americas fell 15 percent to 145.3 mil-lion euros, or $195.9 million, from 171.7 million

euros, or $215.7 million, in the second quarter of 2006.

While apparel revenues grew, footwear and accessories sales for the active lifestyle compa-ny declined. Apparel sales climbed 2 percent to

185.6 million euros, or $250.2 mil-lion, from 181.6 million euros, or $228.2 million, in the same period last year.

Meanwhile, the larger category of footwear fell 2 percent to 320.9 mil-lion euros, or $432.6 million, from 327.9 million euros, or $412 million. The smaller accessories business fell 2 percent, as well, to 36.3 million euros, or $48.9 million, from 37.1 million euros, or $46.6 million.

For the fi rst half of the year, earnings slipped 1 percent to 141.7 million euros, or $188.4 million, from 143.2 million euros, or $176.1 million, in the fi rst half of 2006. Earnings per share dipped to 8.84 euros, or $11.75, from 8.95 euros, or $11.01.

Sales for the front half of 2007 increased almost a percent to 1.2 billion euros, or $1.59 billion, from 1.19 billion euros, or $1.46 billion, in 2006.

CFDA Panel Offers Advice on Business

Rangel to Focus OnPeru Free Trade Deal

H&M Headed to Atlanta

Puma apparel sales were one of the bright spots.

Puma Earnings Drop 10 Percent

Obituary

NEW YORK — Funeral services will be held this morning at Temple Emanu-El in Manhattan for outerwear industry veteran Arthur Levy, who died Wednesday at age 77.

He died at his home in Purchase, N.Y., of pancreatic cancer, according to his son Donald, president and chief executive offi cer of The Levy Group.

Born in Brooklyn, Arthur Levy returned to his home state after graduating from the University of Miami to work for his family’s outerwear fi rm, Lou Levy & Sons. Levy dove right in at the com-pany’s West 38th Street offi ces, pitching in with sales of women’s fake fur coats and nylon rain-coats, handling shipping or doing whatever else was needed, his son said. A few years later, his brother Jack joined the company, and both men devoted their professional lives to the business.

Arthur Levy was known to be “dramatically candid, honest and straightforward,” his son said.

“He would think nothing of telling you ex-actly how it was,” his son added. “He was one of the great, all-time manufacturers who was old school, and he trained me to be the same way.”

Arthur Levy retired as chairman of the family

fi rm about 15 years ago but he continued to talk about the business with his son “every chance he got,” Donald Levy said. Since then, the com-pany’s sales have jumped from $70 million to $200 million, as more high-profi le licenses were signed and its manufacturing extended to other regions of the world. Levy’s nephews Gary and Larry also work in senior management at the New York-based fi rm, which sells such licensed labels as Liz Claiborne and Esprit, and propri-etary ones like Braetan and Donnybrook.

Arthur Levy’s interest in the company never waned, his son said.

“He loved it all his life. It’s probably one of the most interesting things you can do. It has all the elements from manufacturing, to fashion, to guessing what women like and weather. If the weather cooperates, you can have a great sea-son. If not, you may struggle a bit.”

In addition to his brother Jack and son Donald, Levy is survived by his wife, Barbara, a daughter, Lauren Groveman, another son, Michael, his sister Sandy Sheriton and another brother, Michael.

— R.F.

Arthur Levy, Outerwear Exec


Holiday Shines at Relocated IntermezzoBy Julee Greenberg

NEW YORK — It was all about holiday sparkle at Intermezzo.

The ENK International trade show ended its three-day run on Tuesday, where vendors showed plenty of shine and bright colors for holiday and resort. Retailers shopping the show, which was held at the Jacob K. Javits Convention Center because of the ongoing construction at the Show Piers, had mixed feelings about the season’s offerings.

“The new Seventies direc-tion seems to stand out the most, with tie-dye, ombré effects and more soft, muted brights looking great,” said Abbey Samet, con-temporary market analyst at the Doneger Group, a merchandis-ing and fashion consulting orga-nization based here. “One-shoul-der and one-piece rompers and jumpers also looked new, and customers should respond to these fashion items. Clear crys-tals and beads were still preva-lent, which shows the market is not ready to move beyond em-bellishments. Many stores are looking for newness in brands and trends to differentiate as-

sortments. Spring will debut for most in a month or so, this is also a time to look and see to get some ideas on where the trend direction is going.”

Randi Evans, owner of Palm Beach, Fla.-based Rapunzel’s Closet, said she liked some of what she saw, but certainly not everything.

“There are too many horizon-tal stripes and many brands are incorporating horizontal stripe groups on clingy fabrics. That just isn’t fl attering on a lady’s body. There are also not enough white jeans. Seven and Joe’s had white, but many didn’t produce them,” Evans said. “I liked the patent Botkier Bianca bag, which came in an electric blue color. Rachel Pally had some new silhouettes and had a color blocking group. I really liked her updated styles.”

Evans said she also pur-chased Botkier’s footwear line, which doesn’t launch until February 2008.

“The shoes are very sleek and simple,” she said. “We also picked up the Love Story J Brand jean, which has a wider leg opening but still slim fi t to the knee. I think it’s the next big

J brand style.”Stacey Pecor, owner of the

four Olive & Bette’s stores in Manhattan, said she cher-ry-picked the collections at Intermezzo, choosing only a couple of items from the ven-dors she liked.

“There was a lot of repetition,” she said. “My customers are crav-ing something new and I was re-ally looking for lines I wasn’t that familiar with. If the styles weren’t new, at least I could pick up some new brands that my customers haven’t seen before.”

Pecor said she bought a few printed dresses from Eva Franco and one gold jeweled dress from Yohana Barashi. She also liked what she saw at Hudson and Serfontaine for denim and Cake Couture’s bright colors.

“During the holidays I re-ally have to give my customers a reason to buy,” she said. “So I was looking for pretty things and bright colors to liven up the store. We picked up about 10 new vendors, which was good, but I really did have to pick through to fi nd the best items.”

On the exhibitor end, brands seemed happy overall with the

traffi c at the show. For the Los Angeles-based Maxstudio, buy-ers seemed to like the Sixties-in-spired romantic dresses and tu-nics, since those were some of the company’s best booking pieces.

Among the best-selling items at the show were the silk retro minidress for $112.50, print-ed silk and bamboo tunic for $67.50 and a silk embroidered shift for $122.50.

The entire Maxstudio line wholesales from $47.50 to $197.50.

At contemporary dress brand Molly New York, sales repre-sentative Laura Budde said the company booked a good amount from their holiday collection.

Budde pointed out that bright printed silk shift dresses sold well, as did the Audrey Hepburn-inspired little black dresses with some Lurex for shine. All-over sequin styles also did well for holiday. The Molly New York line wholesales from $69 to $109.

At Revolver, a Los Angeles-based contemporary T-shirt and dress company, sales represen-tative Marsula Marchesani said the strapless Deco-print dresses were doing well, as were the lace and sequin dresses for holiday.

“This is something new from us, so our accounts are really liking it,” Marchesani said.

Other best-selling items in-cluded Modal T-shirts in bright yellow, blue and purple, a key-hole minidress in a range of brights and a bubble halter top in navy. The Revolver line wholesales from $34 to $72.

A best-selling look from Revolver.

WWD.COM/CLASSIFIEDS

For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise.

Fashion Show LoftMid-Town • 125 Guests

All Inclusive SetSound, Video, & Lighting

4 Shows DailyShopStudios.com

Jacques Rosas • 212-245-6154

Showrooms & LoftsBWAY 7TH AVE SIDE STREETS

Great ’New’ Office Space AvailADAMS & CO. 212-679-5500

Shirt Folding MachinesNEDCO E-Z FOLD 2000

15 available; $4,000.00 & upCall: 631-951-3284

REDUCE YOURSHIPPING COSTS!!!

We are a Garment Manufacturer seeking toshare shipping costs. We have a state of theart facility located in Secaucus, New Jersey.Clean, organized, computerized and seekingother garment companies to share shippingcosts with us. We ship and receive domesticand foreign product.

To discuss this opportunity, pleaseemail: [email protected] or

call 212-869-3300 x332.

CAD-GRAPHICS-FABRIC PRINTINGU4ia-Photoshp-Illustr: 212 679 6400

www.sanodesignservices.com

CONSULTANTCHILDREN’S WEAR

Professional with 35 years experiencebringing the best European Children’sWear Companies to America and develop-ing their markets, would like to workwith existing American Children’s WearCompanies to develop their products,market, and even help manufacture theproducts. Also seeking men’s/women’swear companies considering a children’scollection. Fax inquiries to: 610-328-2018

PATTERNS, SAMPLES,PRODUCTIONS

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

PATTERNS, SAMPLES,PRODUCTIONS

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

ASSISTANT DESIGNEREst. Eveningwear firm seeks organized,exp’d person to work with design team.

Illustration skills required.Please Email or Fax Resume to:

[email protected] or 212-658- 9416

Designer $80-120K BOE. Current expin mens urban /jeans /wovens brand.

Midtown growing company.Email: [email protected]

Designer $80-120K BOE. Current expin mens knit tops. Must have similarfashion vision of American Eagle,Abercrombie & Fitch, Aeropostale etc.Mdtn growing co. [email protected]

FinanceCHIEF FINANCIAL OFFICER,

SENIOR VICE PRESIDENTNew York, NY

Responsible for directing and overseeingall financial activities of the company.Minimum reqts: Masters Degree- Corp.Law or Corp. Economics + 4 years expSenior Director-Creditor /Debtor cor-porate performance improvement ini-tiatives and turnaround restructuring.Send resume c/o S. Koste, SpiegelBrands, 711 3rd Ave, NY, NY 10017.

GMMMarket leader seeks an accomplishedretail executive with a reputation forperformance and integrity. Must be astrong, talented and unrelentingmerchant with a passion for product.Confidentiality assured.

Fax or email your resume to: (732) 280-6190 or [email protected]

GRAPHIC DESIGNERSJunior contemporary denim brandseeks creative graphic designers.Qualified applicants should be Macproficient in Photoshop and Illustrator.Competitive salary plus benefits. Priorapparel experience a must.Fax or email resume to: 212-354-4418

or [email protected]

Patternmaking

Head PatternmakerANNA SUI

5+ years experience in Women’s DesignerSportswear. Draping, fitting, tech. accu-racy from sample to prod prototype. Musthave organizational and admin. skills.Fax resume and salary req: 212-768-2358

Seamstress/TailorMust be exp’d. w/delicate fabrics. Cutting& beading a plus. Negotiable salary &healthcare. One block from Millburn, NJtrain station. Please call: 973-921-1212

Seeking an energetic CEO7 year old international Accessory Co.based in Los Angeles, CA specializing inNew Born Accessories, as well as high-end Handbags sold to better Specialty &Dept. Stores, and is a recognized brandboth in the USA and internationally.•Are you a seasoned Sales Pro with

national sales management experience?•Do you understand what it takes to source and produce product to the quality specifications and set up Time Action Calendars?•Do you understand basic accounting controls for procurement of product and daily operations?•Are you tired of the large corporate politics, and do you desire to build a team in a uniquely focused market?

Please E-mail your resume to:[email protected]

Technical DesignerWestchester based Sportswear Mfr. seeksindividual w/knit & woven experience.Person must have strong technical skills,knowledge of garment construction, andgrading & specing. Daily correspondencewith factories & customers as you followsamples from 1st fit through production.Please Fax your resume to: 914-328-7941

or E-mail: [email protected]: [email protected]

TECHNICAL DESIGNERYounique Clothing

Fast paced Junior Sportswear Co. seekingpatternmaker/technical designer. Responsiblefor fittings and production specs as wellas liaison between factories and retail spectechnicians. Knowledge of excel, illustrator,photo shop and familiarity with cut andsew knits mandatory.

Please email resumes [email protected]

or fax to 212-764-9187.

Excellent Opportunity!!

JUNIOR SALES ACCOUNT EXECUTIVEBring your passion for fashion and drive for success savvy to us.Looking for a candidate who is enthusiastic and full of potential to join ourwholesale team in the NY corporate office, attributed to company expansion.

Qualified candidate will have the following requirements:•2+ years of sales experience with a luxury brand•Enthusiastic about travel•Excellent verbal and written communication skills•Highly organized, self-motivated, and a team player.

Salary commensurate with experience.Send Resume & cover letter with salary requirements to:Sattie Singh. E-mail: [email protected] or

Fax to: 212-308-0749.No phone calls please!

ACCOUNT EXECUTIVEMen’s sportswear co. is seeking anexp’d salesperson for a new divisionin organic apparel. Great launch sofar, exciting environment and greatoppty. Must be energetic, creative &go-getter in order to sell to major andspecialty stores.

Please fax resume to: (212) 268-3963

Y? MORRISSEYPrivate label sales person needed w/5 yrs. minexp. Must have existing relationships withmajor retailers or dept. stores for privatelabel. Full time or flex package available.

Contact [email protected]

Bergdorf Boutique Mgr.Ajne Rare & Precious seeks Mgr. / Appren-tice Perfumer for Bergdorf counter. Dutiesinclude blending parfum, sales, meetingsw/buyers, and training. Must have cha-risma, xlnt people/sales skills and nose.Ajne creates 100% natural parfum, skinand body products from plants grownat own organic farm. Xlnt hourly, com-mission & bonus. E-mail: [email protected]

All the bes t for your family.

FASHION | HOME | TRAVEL | HEALTH

TO SUBSCRIBE call (877) 402-6654 or log on to www.cookiemag.com

Documents

ELIE TAHARI’S RETAIL THERAPY/4 FORTUNOFF ON ...ELIE TAHARI’S RETAIL THERAPY/4 FORTUNOFF ON THE MOVE/5 Women’s Wear Daily † The Retailers’ Daily Newspaper † August 10, 2007