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GETTING EVA EVA MENDES REVEALS PLANS TO EXPAND HER COLLECTION FOR NEW YORK & CO. PAGE 9
MARC’S BIG MOVE
MARC JACOBS SAID FOLDING MARC BY MARC INTO MAIN COLLECTION. PAGE 2
DIGITAL BEAUTY: THE WWD DIGITAL BEAUTY FORUM HAD SPEAKERS RANGING FROM BIRCHBOX TO CLARINS, NET-A-PORTER TO UNILEVER. PAGES 4 TO 6
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Diddy’s New Path “We’re a true fashion label and this is something we take very seriously. So to make people miss it, that was my plan,” said Sean “Diddy” Combs about his six-year hiatus from the fragrance business. Well, now he’s back with a new one geared to Millennials — called 3AM — and a new partner, Parlux. In an exclusive interview on the set of 3AM’s ad shoot, Diddy talks scents, marketing, partnerships and staying relevant. For more, see page 7.
NEW CREATIVE DIRECTOR
Emilio Pucci Goes Italian: Taps MSGM’s Giorgetti By MILES SOCHA PARIS — LVMH Moët Hennessy Louis Vuitton has netted one of Italy’s contemporary fashion stars and print wizards — MSGM designer Massimo Giorgetti — and named him creative director of Emilio Pucci. Confirming the appointment exclusively to WWD, LVMH Fashion Group chairman and chief executive officer Pierre-Yves Roussel said Giorgetti is to join the Florentine house in April and show his first collection in September during Milan Fashion Week. “He has that fresh approach to fashion: He loves color, he’s passionate about Pucci,” Roussel said, hinting that Giorgetti would steer the brand in a younger
Roberto Cavalli SpA Confirms Peter Dundas As Creative Director. Page 3 direction, dialing down its recent red-carpet orientation. “I think the brand is fundamentally a daywear brand, with a sporty attitude — fresh and feminine.” WWD first reported that LVMH had its eye on Giorgetti in September, when senior managers from the French luxury giant were spotted at MSGM’s spring show. The boyish, ebullient designer is to continue designing his independent, Milan-based MSGM brand, which posted revenues of $45 million last year, and shuttle between the two Italian cities. Beyond his creative prowess, Roussel lauded Giorgetti’s entrepreneurial and hands-on approach to the fashion business: “Because he has his own brand, he knows what it takes.” As if preparing for his new Pucci assignment, Giorgetti stripped his fall MSGM collection of the SEE PAGE 3
The Smartwatch Rush: Tag Heuer, Gucci Dive In By SHARON EDELSON and JOELLE DIDERICH
PHOTO BY STEFANIE KEENAN
THE APPLE WATCH IS GOING to have plenty of competition. With the Baselworld fair in full swing, smart devices are the talk of the industry — and became even more so on Thursday thanks to Tag Heuer and Gucci. Tag Heuer linked with Google and Intel to unveil a partnership to launch one of the first Swiss smartwatches in the luxury market by year’s end. Meanwhile, Gucci teamed up with Will.i.am to disclose they are collaborating on a smartband. Tag Heuer and its partners claim that, together, they will create a luxury product that seamlessly connects to its wearer’s daily life, with Tag providing the watchmaking credibility and Google and Intel the technological prowess. “Our collaboration provides a rich host of synergies, forming a win-win partnership,” said Jean-Claude Biver, president of the watch division of LVMH Group and chief executive officer of Tag Heuer. “The potential for our three companies is enormous.” “The quality of Swiss watches is renowned worldwide,” said Guy Sémon, general manager of Tag Heuer. “When this is allied with the creative technology and global power of two companies like Intel and Google, using the Android Wear platform and based on Intel technology, we can see the launch of a technological revolution in our industry.” Earlier in the day, Will.i.am and Gucci president and ceo Marco Bizzarri revealed they are working together on a smartband, which would be disconnected from any smartphone. SEE PAGE 9
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WWD FRIDAY, MARCH 20, 2015
Sources: Marc by Marc Discontinued By BRIDGET FOLEY RUMORS HAVE swirled since before the New York collections about possible changes at Marc Jacobs. Now, those changes are coming into focus. One big move: the Marc by Marc Jacobs label will be discontinued, and that collection will be absorbed into the primary Marc Jacobs line. Sources said the newly expanded, single-label Marc Jacobs brand will encompass a range of merchandise and price points currently divided between the two lines, from luxury to contemporary. The point, sources indicated, is not to lessen the product range, but to unify all products with a clarity of voice and aesthetic, and ultimately, to expand the product offerings, an initiative in development at least since October 2013,
when Jacobs left Louis Vuitton to focus fully on his own brand, including a possible IPO. At that time, LVMH chairman Bernard Arnault told WWD, “The first step is to put in place the organization, and to complete the business plan, which requires retail organization, retail investment and more products. These steps have already started. This will take time, maybe two or three years, to be completely in place.” Staffing ramifications remain unclear. Marc by Marc Jacobs is designed by creative director Katie Hillier and women’s design director Luella Bartley, both appointed in May 2013. Hillier’s history with the brand and with LVMH predates that appointment; she worked with Marc by Marc Jacobs in various freelance capacities and elsewhere within
the group for the previous 10 years and remains highly thought of within the company. Also unclear is how the brand’s current stores, particularly those in clusters on Bleecker Street in New York’s West Village and on Melrose Avenue in Los Angeles, will be impacted. In 2013, Arnault cited the need to bolster the brand’s overall retail presence. “It’s why we have to invest in the product, because retail means some investment,” he said. “Whether we buy some buildings or rent some buildings, it’s a substantial investment.…To fill the stores, especially if the stores are larger, we need more products. It’s very simple.…” Arnault added. Jacobs and Sebastian Suhl, who took over as chief executive officer of Marc Jacobs in September, could not be reached for comment at press time.
Sears Sees REIT Completed by June By VICKI M. YOUNG SHARES OF Sears Holdings Corp. rose 3.2 percent Thursday after the retailer’s chief financial officer said the company’s plan for a real estate investment trust is expected to be completed by June 1. Robert Schriesheim, Sears’ cfo, has taken to blogging on the corporate Web site in response to what executives perceive as misconceptions about the retailer’s business operations. Shares of Sears closed Thursday at $41.37 in Nasdaq trading. The REIT plan, unveiled in November, calls for the purchase of 200 to 300 store locations to be managed as a real estate company and “would provide cash proceeds to Sears Holdings in excess of $2 billion, providing us with substantially more financial flexibility to improve our operations, address any vendor concerns and meet our obligations,” Schriesheim said. While $2 billion would give Sears some additional financial muscle, how long that lasts will depend on future cash burn rates. Further, while the REIT plan buys Sears more time, it fails to address the key questions
swirling about the company and chairman Edward Lampert’s strategy, including the place of Sears and Kmart in the modern retail landscape. The cfo also said that in the last three years on a comparable basis, the company has reduced fourth-quarter inventory levels for the quarter ended Jan. 31 by $1.4 billion and its payables by $712 million, noting that the decreases
$41.37 CLOSING SEARS SHARE PRICE ON THURSDAY. lower the level of vendor support and supplier credit needed to run the business. To be sure, store closures — more than 100 last year — do reduce inventory needs, and more closures are likely. All of the financial maneuvering by Lampert in the past year has been closely watched by factors, credit analysts and other executives. One thing is clear: A completed REIT will buy Sears probably another year in busi-
ness, but what happens after that is unclear. Further, some credit professionals noted that if that REIT doesn’t happen by June, the retailer’s third quarter could become the “tipping point” as to whether it can survive through another holiday season. Factors and other credit professionals over the past few weeks who are still approving orders said they are doing so only quarter to quarter since they have concerns over the uncertainty surrounding the health of Sears’ balance sheet. Orders for deliveries into the next quarter are put on hold, or not approved at all, they said. A few believe that $2 billion doesn’t provide the liquidity that is truly needed, with one credit specialist stating that Sears probably needs $3 billion or more in liquidity. That said, most agree that the REIT is needed because “credit with factors is drying up.” Sears in the past has said only a fraction of its inventory from vendors is factored. The cfo on Thursday reiterated that people who are not looking at the company closely may have a hard time understanding what the retailer has been focused on.
DIGITAL BRIEFING BOX FOR MORE COVERAGE, FIND US ON WWD.COM, SOCIAL AND MOBILE.
On the runway at Tenbo.
Michelle Obama arriving in Tokyo wearing Kenzo.
WHAT’S POPULAR ON FACEBOOK This Week on Facebook: Follow us on Facebook to get the latest from Tokyo Fashion Week, Michelle Obama’s Asian tour, and more. For more, see WWD.com. On the runway at A Degree Fahrenheit.
Model Maria Borges.
Victoria Beckham at amfAR’s gala in Hong Kong.
On the streets at Tokyo Fashion Week.
Vince Shares Drop on Guidance for Year ALTHOUGH VINCE Holding Corp. posted a fourth-quarter profit increase, investors weren’t thrilled with fiscal-year 2015 guidance. Investors sent shares of Vince down 16.4 percent to close at $17.89 in Big Board trading on Thursday. For the three months ended Jan. 31, net income was $10.5 million, or 28 cents a diluted share, from $582,000, or 2 cents, a year ago. Net sales rose 7.9 percent to $94.7 million from $87.8 million. Comparable-store sales were up 8.7 percent. Wall Street analysts were expecting 26 cents on sales of $99 million. The company said the wholesale segment slipped 0.6 percent to $68.9 million, while the direct-to-consumer operation jumped 39.7 percent to $25.8 million. The company completed its initial public offering in November 2013. Results on a nonadjusted basis for the same 2013 quarter include items such as public company transition
costs and the inclusion of the nonVince businesses that were separated upon completion of the IPO. For the full year, the company posted net income of $35.7 million, or 93 cents a diluted share, against a net loss of $27.4 million, or 98 cents, in 2013. Net sales gained 18.1 percent to $340.4 million from $288.2 million. For 2015, the company guided diluted earnings per share in the $1.00 to $1.05 range on total net sales of between $360 million to $370 million. Wall Street was projecting EPS of $1.14 on sales of $398.7 million. Part of that difference is likely due to the wholesale strategy shifts because of changing order patterns and omnichannel at retail that executives noted on the conference call to Wall Street analysts. Company executives referred to fiscal year 2015 as a “transition year.” While Matthew R. Boss at J.P. Morgan noted that about 75 percent of revenues are
from the wholesale segment, category extensions in handbags and footwear do provide some upside opportunities. Jill Granoff, chairman and chief executive officer, said in a telephone interview the company will continue to “increase full-price selling in all points of distribution through the right inventory in the right amount and at the right place.” She explained the company will have less promotions in its own stores, adding that with price-matching available through advances in digital technology, the company also plans to “keep our buys tight.” The company also will have a new technology platform this fall that will allow it to provide a more integrated approach in marketing to its customer, such as access to past purchasing patterns and the ability to add or suggest options to update an existing wardrobe from prior seasons, Granoff said. — V.M.Y.
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WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 209, NO. 58. FRIDAY, MARCH 20, 2015. WWD (ISSN 0149-5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, June, August, September, October, November and December, and two additional issues in April and three additional issues in February) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Floor, Los Angeles, CA 90025. Periodicals postage paid at Los Angeles, CA, and at additional mailing offices. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at [emailprotected]. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues contained in a subscription term and/or the way the product is delivered. Address all editorial, business and production correspondence to WWD, 475 Fifth Ave., 15th Floor, New York, NY 10017. For permissions requests, please call 212-630-5656, or fax request to 212-630-5883. For reprints, please e-mail [emailprotected] or call Wright’s Media 877-652-5295. For reuse permissions, please e-mail [emailprotected] or call 800-897-8666.Visit us online at www.wwd.com. To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WWD IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.
WWD FRIDAY, MARCH 20, 2015 3 WWD.COM
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New Direction Seen for Pucci Under Giorgetti designer Julio Espada. The Pucci family has also collaborated with Antonio Berardi and Stephan Janson in the past. Today, Pucci counts about 50 boutiques in the world, plus select department store doors. Roussel declined to discuss business targets, saying the immediate focus would be to modernize and expand the product offer.
Massimo Giorgetti calls this photo of models on the roof of Palazzo Pucci a “declaration of intention.”
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[Massimo Giorgetti] has that fresh approach to fashion: he loves color, he’s passionate about Pucci. — PIERRE-YVES ROUSSEL, LVMH FASHION GROUP
Massimo Giorgetti
PHOTO BY DANILO SCARPATI
{Continued from page one}
digital prints that initially caught the fashion world’s attention, instead employing bold colorblocking in acid shades, 3-D embroideries and textured fabrics ranging from tinsel to shaggy Mongolian lamb. The 38-year-old Giorgetti succeeds Peter Dundas, who spent seven years at the design helm and is to join Roberto Cavalli as creative director. While Giorgetti is part of a new generation of designers positioning their brands in the contemporary zone, Pucci is to retain its positioning in the luxury space, albeit with a younger, more modern attitude, Roussel said. “He’s very creative, he moves fast and he has a lot of ideas,” the executive said, noting the hire was made in tandem with LVMH’s Delphine Arnault, a key fashion scout at the luxury group her family controls, and Laudomia Pucci, interim ceo and daughter of the founding designer. “Through the appointment of Massimo Giorgetti, we wish to express a vision of today’s ever-evolving world while honoring our Italian roots and luxury lifestyle,” said Laudomia Pucci. Established in 1947, Emilio Pucci is one of Italy’s storied jet-set brands of the Sixties, synonymous with dazzling prints on silk jersey, which the founder even applied to skiwear early in his career, pioneering a lifestyle approach to fashion. Roussel argued that the “sky is the limit” for the brand given its “joyful” spirit, legacy of innovation and “protected” nature, with no second line, only one license — eyewear with Marcolin — and controlled distribution. “The codes are so strong, you can do anything with Pucci,” he asserted, mentioning a 2012 collaboration on makeup with Guerlain, also controlled by LVMH. “The brand has kept its integrity.” LVMH acquired the brand in 2002 for 38 million euros, or $35.9 million at average exchange rates that year, and has experimented with a variety of designers, including Matthew Williamson and Christian Lacroix, both predecessors to Dundas, whom Roussel thanked for “a successful chapter of the brand.” Before Lacroix joined Pucci in 2002, the creative director was American
Giorgetti was not immediately available for comment, but furnished WWD with a photo by Danilo Scarpati he described as a “declaration of intention.” It depicts a young man and a young woman on the roof of the Palazzo Pucci, colorful scarves knotted over white T-shirts that Giorgetti likened to “blank paper, a new story to tell.” “It really shows that the roots of the brand are in Florence,” Roussel said of the photo. “It’s about a real woman and not a model with three other girls.” The presence of a man in the photo does not telegraph an imminent intention to launch men’s wear, Roussel noted, although the brand has marketed shirts and accessories for men in the past and could reenter the category in the future. Pucci’s decision to tap Giorgetti is somewhat unusual since this is the Italian designer’s first experience at the helm of a luxury label.
Born in Italy’s Emilia Romagna region in 1977, Giorgetti launched his contemporary MSGM brand in 2008 in collaboration with Italian manufacturing company Paoloni. He introduced a playful, upbeat take on women’s and men’s wear hinged on simple, easy-to-wear silhouettes enlivened by captivating prints and sold at competitive prices via some 700 wholesale doors worldwide. Under Dundas, Pucci focused on sexy, hyper-glamorous eveningwear, earning a model and “It” girl following including Poppy Delevingne, Gaia Repossi, Bianca Brandolini D’Adda and Natasha Poly. Giorgetti’s point of view is strongly influenced by indie bands like The Strokes and MGMT and contemporary art, one of the designer’s biggest passions — notwithstanding Pane, his cute Jack Russell terrier forever underfoot in his office.
Cavalli Confirms Peter Dundas Appointment By LUISA ZARGANI MILAN — Florence continues to beckon Peter Dundas. On Thursday, Roberto Cavalli SpA appointed Dundas as the Florence-based company’s new creative director, confirming speculation reported by WWD as far back as October. The Norwegian designer had been the artistic director of Emilio Pucci, also based in Florence, since 2008. Dundas’ first collection for Cavalli will bow in Milan in September. “This is a homecoming for me. It is an honor for me to continue to evolve the wonderful world of Roberto Cavalli, and I am very excited by the possibilities and potential of this unique brand. I cannot wait to get started,” said Dundas, who worked with Cavalli and his wife, Eva as head designer from 2002 to 2005. The Cavallis said choosing Dundas stemmed from “the desire to evolve a style that combines glamour, tradition and innovation, recognized worldwide as the signature of Cavalli since the birth of the house.” Asked about the future of the designing couple, a spokeswom-
an said the Cavallis “will continue to supervise the respect of the brand’s style and support the relaunch of the company guaranteeing continuity with the past.” The announcement comes as Roberto Cavalli, owner of the brand, is negotiating the sale of a majority stake in his company to Italian private equity firm Clessidra SGR SpA. The deal should be completed at the end of this month or early April, chief executive officer Daniele Corvasce said in February before the Just Cavalli show. Dundas cut his teeth working behind the scenes at Jean Paul Gaultier and Christian Lacroix. His first major solo appointment came in 2005 when he was named artistic director at Ungaro. After Ungaro, the designer consulted for Dolce & Gabbana before being appointed creative director of French furrier Revillon in January 2008. Known for his luxury Boho, Seventies, rock-sexy designs and knack with prints, Dundas’ sensibility is perceived to be in sync with Cavalli’s own feminine and head-turning looks, animal prints and bodyhugging silhouettes that have long been red-carpet mainstays.
Ken Downing, senior vice president and fashion director of Neiman Marcus, said “Dundas’ understanding of supersexy, exotic, rock-’n’-roll-infused fashion makes his return to Roberto Cavalli the perfect pairing of designer and brand.” Tiziana Cardini, fashion director at La Rinascente, agreed, viewing Dundas’ return to Cavalli as a “great fit,” since the designer’s “very sensual style is perfect for the brand.” She also said Dundas has a “certain star power himself, a personal glamour that can add strength to the brand and make it more appealing.” Dundas is no stranger to the party circuit, and is frequently spotted on the arms of “It” girls and models including Natasha Poly, Poppy Delevingne or Bianca Brandolini D’Adda, echoing Cavalli’s own flamboyant lifestyle and star-studded events on his yacht at the Cannes Film Festival. Dundas will be responsible for the creative direction of the women’s and men’s readyto-wear and accessories collections, as well as all licenses. He will also be directly involved in the marketing and communication strategies of the brand.
Sources say once the Clessidra deal is completed, Cavalli will retain a 10 percent stake in the firm he founded in 1970. Clessidra is paying around 400 million euros, or $423.5 million at current exchange, for the 90 percent interest. As reported, the Cavalli company ended 2014 with a decline in profits but gains in revenues, blaming socioeconomic gyrations, declines in the wholesale channel and financial troubles hitting
190
NUMBER OF CAVALLI GROUP’S MONOBRAND STORES. a licensee. The firm reported unaudited earnings before interest, taxes, depreciation and amortization of 14.8 million euros, or $19.6 million, down 33.9 percent compared with the previous year. Without taking into consideration extraordinary items connected to the devaluation of credits from licensees and nonrecurring costs, EBITDA would have risen 8.9 percent to 24.4 million euros, or $32.4 million.
— WITH CONTRIBUTIONS FROM ALESSANDRA TURRA
In the 12 months ended Dec. 31, sales rose 4.2 percent to 209.4 million euros, or $278.5 million. Dollar figures were converted from the euro at average exchange rates for the periods to which they refer. While in 2014, negotiations with Permira and later VTB Capital, part of Russian investment bank VTB Group, never resulted in a sale, market sources expect the deal with Clessidra will finally take place. Upon completion, Clessidra executive vice chairman Francesco Trapani, former chairman of LVMH Moët Hennessy Louis Vuitton’s watches and jewelry division, will become president of the Cavalli company. Clessidra first looked at the Cavalli books in 2009, but talks broke down over the value of the company. At the time, sources said Cavalli was looking to sell for an amount that would value his firm at 1 billion euros, or $1.25 billion. The Cavalli group counts 190 monobrand stores, of which 91 are Roberto Cavalli and 54 are Just Cavalli. The remaining units are 28 Cavalli Class and 17 Roberto Cavalli Junior. A directly operated store will open in Houston in September and a unit in Hong Kong will open in June. There are also 12 Cavalli Clubs and Cavalli Caffès around the world.
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WWD FRIDAY, MARCH 20, 2015 BEAUTY SUMMITS
beauty
Digitizing Beauty
In a world where online space increasingly plays a critical role in most companies’ businesses, experts came together at WWD’s Digital Beauty Forum to talk strategies.
KATHY O’BRIEN, UNILEVER The growth of digital has transformed the power of marketing from brands to the consumer. “What happens in the boardroom no longer stays in the boardroom,” said Kathy O’Brien, vice president of marketing services and skin at Unilever. “It is no longer about campaigns, it is about continuous engagement and
building one-on-one relationships,” she said, noting that consumers spend more than an hour a day on Facebook and Instagram. Unilever realized there was a massive opportunity on YouTube, a channel she said is underutilized in beauty, for its portfolio of hair brands. Unilever’s All Things Hair YouTube channel, which, to date has generated 6.5 million views, uses Google data to get real-time
DAVID OLSEN, NET-A-PORTER Fifteen years ago, people told Natalie Massenet that no one would ever buy fashion online because it needs to be tried on. It’s a good thing she didn’t listen. “This issue is still relevant to beauty,” said David Olsen, global vice president of beauty at Net-a-porter. He added that 6 to 10 percent of all beauty purchases are online, and a good portion of that is replenishment. But according to Olsen, beauty at Net-a-porter has been a huge success. The company beat its first-year forecast by 40 percent and tripled its business in its second year. Olsen touched on five key points that have helped the company flourish including: Having a clear vision, merging content with commerce, creating a digital beauty counter, offering superior customer service and being current and relevant. When launching beauty, the company decided to not discount, which is con-
David Olsen
insights on what people were searching about hair (there are more than 11 billion hair searches per year), Unilever was able to pass that information on to vloggers to produce videos featuring Toni & Guy, VO5 and Dove. People aren’t just visiting Facebook or Twitter anymore, either, she said, noting there’s 300 million people using Instagram globally on a monthly basis and one million using Snapchat every month around the world. Unilever has already tapped the power of apps, responding in real time to girls’ posts on Snapchat as part of its self-esteem campaign. These applications remove the friction out of buying, such as “buy it” buttons. “The widespread adoption of buy-it-now links will transform marketing as we know it,” she predicted. Thinking mobile first is an initiative at Unilever. “People are on a mobile device 194 minutes a day,” she said. “Seventy-five percent of beauty sites are mobile-optimized and account for onethird of paid research clicks.” A major adjustment retailers will have to make is how to counter the growth of online, which she said could hit 20 percent of business by 2020.
where users uploaded photos of themselves wearing their favorite lipstick shades and tagged the posts. Lancôme used the photos in e-mail marketing campaigns, livestreamed them to a landing page on the Web site and more. “The opportunity is in the willingness of the consumer to cocreate your brand,” said Alessio Rossi, vice president of interactive marketing and ecommerce for Lancôme Paris. In a few months, Lancôme will launch a new product in the U.S. that is already available in some European countries. “[The product] is the second-most searched term on the U.S. Web site,” said Rossi, “without us telling anything about it.”
KATIA BEAUCHAMP, BIRCHBOX
stantly found online. “It ruins your margins, commoditizes your product, and attracts the discount seeker who isn’t loyal to your site,” Olsen said. In terms of content and commerce, Olsen has built credibility by featuring products they don’t sell on the site. “In a digital world, your product pages are your beauty counter,” Olsen said. Net-a-porter shoots all of its products and how-to videos in house, includes a full list of ingredients and displays the product in multiple. “We have three million views per month on videos and 80 percent of them are watched from the beginning to end,” he added. This year, Net-a-porter launched Beauty Chat, which became a huge revenue center for the site. The last element he touched on was underutilization of visual merchandisers. “[Our merchandisers] integrate beauty and fashion on product pages,” he said. “Because, for us, it’s about completing the look.”
For Katia Beauchamp, cofounder and cochief executive officer of Birchbox, digital is a key driver behind her business’ success. “We think of ourselves as a platform that sits between companies and consumers,” said Beauchamp of her business, cofounded with her Harvard business school classmate Hayley Barna. Birchbox’s more than 800,000 subscribers receive a box monthly containing samples of beauty products. Within two months of its founding, Birchbox was in all 50 states, said Beauchamp, and in 2012, the brand expanded to France, Spain and the U.K., as well as in to men’s products. In 2014, Birchbox added Canada and Belgium to that list. In July, the retailer opened its first brick-and-mortar location in New York City’s SoHo neighborhood. Beauchamp noted that Internet shopping is inherently challenging for beauty companies. “Beauty is a category that consumers want to touch and try and feel,” she noted. “But the Internet still lacks the ability to really experience the product.” That observation spurred Beauchamp and Barna to recognize a problem — and a market opportunity. “You get a box monthly of four to five products geared to you, and we create content to teach you about those products, then make the path to purchase seamless by going to birchbox.com. We are the retailer you buy the product from.” In fact, 30 percent of Birchbox’s revenues come from full-size product sales, Beauchamp said. The data Birchbox collects also helps make marketing efforts by companies more transparent, she said. “You can really make a splash without spending a lot of money and be able to measure the outcome [of it],” she said. “We measure everything, and share it with our brands — we can tell you what this asset generated in ROI [return on investment].” The Birchbox consumer’s median age is about 30, said Beauchamp, with a high household income and living in an urban area. That customer is also highly engaged in social media, which contributes to the 500 million monthly impressions on birchbox.com and social media.
— JAYME CYK
— JULIE NAUGHTON
— FAYE BROOKMAN
ALESSIO ROSSI, LANCÔME, AND NICOLE TIBERIA, OLAPIC
In four years, the number of Instagram users skyrocketed to 300 million. Each day, 70 million photos are uploaded to the platform. In a year, that totals 26 billion images. “We can’t turn a blind eye to [the intense velocity of consumer content] and, certainly, consumers are demanding more,” said Nicole Tiberia, director of brand strategy, beauty and luxury at Olapic. Brands now understand the power of user-generated content and how it can be utilized in visual marketing. According to an Olapic study, 63 percent of people prefer and trust consumer photos over brand photos. Lancôme started a social campaign called #LancômeLovesLips,
Katia Beauchamp
It doesn’t stop with social. “One area that we anticipate really picking up speed is syndication,” she said. “A brand like Lancôme is taking their content and sharing it with retailers. “The more you take the content that is generated and display it across the touch-points, then you increase the chances of keeping consumers engaged,” Rossi said. Moving forward, Tiberia also expects brands to feature usergenerated content more prominently on their Web sites. She added, “Having user-generated content front and center says, ‘We believe in our user, we love to celebrate them.’” — ANNA DYSINGER
Nicole Tiberia and Alessio Rossi
ALL PHOTOS BY PATRICK MACLEOD
Kathy O’Brien
WWD FRIDAY, MARCH 20, 2015 5 WWD.COM Aurélie Brisac
AURÉLIE BRISAC, CLARINS When Clarins rapidly built out its global Web presence beginning in 2010 — the brand launched 18 sites in just as many months — Aurélie Brisac, Clarins global digital marketing director, learned some valuable lessons about one of the world’s biggest consumer markets, China. “The first was just the simple fact that the e-commerce beauty category exists and could be applied to Clarins brands,” said Brisac during her on-stage conversation at the WWD Digital Beauty Forum with Molly Prior, financial beauty editor at WWD. There was a caveat, though. Clarins’ global investment — its sites — had local limits, especially in China. One key to success in that country is “guanxi” or relationships — in this case, with its retail partners. That meant setting up a shop on TaoBao Tmall, a digital retail marketplace that, according to Brisac, represents 85 percent of the online transactions in China. “If you go on the site, you would be scared because it’s shiny, there’s information all over the place all the time,” she said. “But Tmall 100 percent respects the brand’s image and its DNA. There is no risk of damaging the online image because you manage your own boutique.”
FRANCISCO GIMENEZ, ESALON Seventy-five percent of women color their hair, but many relying on boxed colors aren’t pleased with the results, noted Francisco Gimenez, chief executive officer and cofounder of eSalon.
Francisco Gimenez
Gimenez, who helped launch Pricegrabber.com, set out to create a technology that enhances the athome experience. “I stumbled upon the world of hair color, where there is a huge gap between people who use a box because it is convenient — but they are not happy — and those who
PARHAM AARABI, MODIFACE According to Parham Aarabi, founder and chief executive officer of ModiFace, virtual makeovers lead to selfies, which boost e-commerce sales. Aarabi, who shared myriad advancements in virtual makeover tools at WWD’s Digital Beauty Forum, noted that going beyond the traditional sample shade swatches spurs multiple sales. “There isn’t strong motivation to use a new product and sharing doesn’t happen that often [with swatches]. Sharing is important because it gauges how excited people are about products.” To that end, when a model is more relatable to the customer, conversion rises. But when a user sees her own face, sales really start clicking.
MARITA BURKE AND DOROTHY “DOT” GROUIOS, MECCA BRANDS
Meanwhile, the company has in effect created two businesses in China — clarins.com and its Tmall boutique — with their customers divided between the two. “We have difficulties converting Tmall consumers into clarins.com consumers.” Also playing a major role in the Clarins China strategy is the social media platform WeChat. The company aims to use it as an “omnichannel” to reach Chinese customers in China, but equally as important, Chinese customers outside of China. “The Chinese are traveling, and that population [traveling and using WeChat] is interesting because we know they’re young, and Clarins needs to recruit a younger customer.” — CRYSTAL MARTIN
are pleased with the salon experience but don’t like the time it takes and the expense,” explained Gimenez. On eSalon, which launched in 2010, customers complete online profiles answering questions such as eye and hair color. The input is used to develop a formula personalized for them right down to their name on the package. One of eSalon’s 90,000 combinations is then shipped to their home, complete with everything needed to mimic the salon environment such as directions, professional-grade gloves, an applicator brush and the proper shampoos — all for $20. Despite all the right moves, eSalon’s early growth was at a slow pace. A bit of detective work helped eSalon find blogs and content that helped women learn how to color better at home that they could tie to their site. “That helped engage the consumer and get them to buy a brand they had never heard of before,” he said. There are now more than 130,000 clients with average repurchase every six weeks. The company expects to produce more than 1.3 million applications in 2015. At-home dissatisfaction with boxes isn’t endemic to the U.S., Gimenez noted, adding eSalon just expanded to the U.K. — F.B. “If people upload a photo, they will try new products and complete the look,” he said, referring to a higher incidence of multiple purchases. Research shows that adding just the model’s face boosts conversion rates by 16 percent. “But when you add the model images and the ability for a user to upload a photo, the sharing rate becomes substantially higher. It’s over 10 percent and conversions become over 15 percent,” Aarabi said. So how does ModiFace take it further? “If you watch people near a kiosk, 95 percent Parham will look, but the numAarabi ber who uses the kiosk is 20 percent,” Aarabi said. ModiFace is proposing a camera that scans a consumers’ face as soon as they glance at it. Within seconds their complexion, hair and eye color are analyzed to suggest looks. Aarabi declared, “I believe this will be gamechanging for retailers.” — F.B.
at prices and how they had to be on parity as much as possible with global prices, as well as refining its Web sites. Mecca is now within 15 percent of U.S. prices on global While the retailer isn’t a pure-play e-com- brands even though the market is 50 permerce or digital retailer, the vastness of the cent more expensive than the U.S. market, Australian landscape and consumers’ increas- Burke said. New customer acquisition has ing desire to shop online is making Mecca more than doubled, averaging 34 percent even more laser-focused on its online strategy. over the last three years, she said. The retailer also had what Burke calls “a “Australia is a very funny market,” said Marita Burke, head of marketing, brands and call to arms” regarding customer capture, buying for Mecca Brands, which operates on going on a massive data effort to be able to three cylinders — Mecca Cosmetica, Mecca market as directly as possible. It worked: Maxima and Kit Cosmetics. “Our reputation Customer capture went from 73 percent to 95 far outweighs our size. With a geographical percent, said Burke, bringing an additional land space equivalent to the United States, 400,000 customers into the Mecca fold. Next, our population tips in at about the size of the retailer formed a focus group from its daFlorida, and this population is largely populat- tabase, dubbing them the Circle of Expertise. ed across five or six key cities. Shipping is very “And 200,000 beauty consumers became the architects of our strategic response to this difficult and timely shipping is even harder.” digital coup d’etat,” Digital has comBurke said. Key depletely revolutionsires emerged: Fair ized the Australian and transparent pricbeauty landscape ing, an omnichannel over the past sevloyalty program that eral years, Burke bridged all Mecca said. And Burke formats and one uniand Dorothy “Dot” fied beauty Web site Grouios, head of digirather than the three tal for Mecca Brands, Marita Burke and Dorothy “Dot” Grouios that already existed. were refreshingly The three sites frank in admitting that there have been speed bumps along the were merged and became mecca.com.au in way. “In 2010, Australia and Mecca hit the late 2014. Grouios and her team focused on perfect storm,” Burke said. “The Australian streamlining and improving search funcdollar, almost overnight, hit parity with the tionality, offering the ability to zoom in on U.S. dollar. Overnight, Australia became one products, creating searchable and shareof the most expensive markets on the globe able wish lists, as well as making the site to purchase beauty. Buying internationally more editorial in feel. Behind-the-scenes suddenly became 50 percent cheaper than videos, trend reports and articles became buying beauty locally, and suddenly, 20 per- part of the Web site’s landscape, as did putcent of the beauty business had gone off- ting the ability to live chat with a beauty adviser on every page. Grouios noted that shore to international sites.” Adapting involved leveraging Mecca’s customers are now spending an average of considerable strengths — a database of six-and-a-half minutes per session on the more than a million customers stretch- site, up about 25 percent over last year. As ing back to the company’s 1997 founding, a result of these changes, said Grouios, onproduct exclusives in Australia, a national line traffic is up 105 percent, conversion is footprint, three Web sites and local market up 7 percent and sales are up 110 percent. knowledge. It also required a sharp look — J.N.
ALICIA YOON, PEACH AND LILY In order to sell Korean beauty products, it’s imperative to understand the culture. “An industry is only going to be as competitive as your consumers are demanding,” declared Alicia Yoon, cofounder and chief executive officer of Peach and Lily, a Web site that exclusively sells beauty products from Korea and Japan. Yoon explained that her company curates Korean and Japanese beauty products, while distributing these brands to retailers like Urban Outfitters and Space NK. She noted Peach and Lily will soon launch its brands at Sephora, Target and QVC. “We look at the formulations and ingredients and interview the brands and R&D [research and development] teams to make sure
John Sheldon and Linda Wells
LINDA WELLS, ALLURE, AND JOHN SHELDON, MASTERCARD LABS In Allure’s view, there is a point where editorial content meets commerce, and the digital universe makes that intersection all the more seamless. That’s the thinking behind Allure magazine’s collaboration with MasterCard Labs, which aims to streamline the process of flipping through the pages of a magazine for inspiration and making a purchase. “We want people to act on their impulse,” said editor in chief Linda Wells during a
these products are very highquality when we bring them Stateside,” Yoon said. “Also, any product that we curate needs to be visible in Korea’s digital ecosystem and have to have at least three psychographics conducting intense conversations around these products.” She added, “In Korea, especially the smaller companies, Alicia Yoon they tend to develop a product with a rich enough story to target different psychographics.” She gave the example of Snail Cream, which is targeted to teens. “We also saw women in their 30s and 40s who are heavy information-seekers start to talk about it,” Yoon said. “It was two very different communities talking about this on very different platforms across different social media channels.” — J.C. presentation with MasterCard Labs called “Beauty Meets Tech: How to Shortcut, Streamline and Spark the Path to Purchase.” In Wells’ view, “Connecting that content to commerce is where the magic happens.” She noted Allure has found the average woman searches more than seven sources of beauty information before she buys. “That moment of impulse actually vanishes,” she said. John Sheldon, senior vice president and group head of innovation management of MasterCard Labs, demonstrated the Shop This button on the digital version of Allure and its Web site. It allows the product to “be there right at the moment of impulse.” All shoppable items, despite what vendor is selling them, are then placed in the same shopping cart and purchased with one checkout. Wells and Sheldon said the “shop this” functionality could one day extend to the ads found in Allure. “We know consumers look at ads for inspiration,” Wells said. Readers-turned-shoppers can research the products through Allure’s editorial features. — MOLLY PRIOR
WWD FRIDAY, MARCH 20, 2015
WWD.COM
beauty
Tommy Bahama Launches Island Life By JULIE NAUGHTON
BEAUTY SUMMITS
TOMMY BAHAMA is about to add a new island to its holdings — Island Life, a fragrance masterbrand beginning to roll out now. “Tommy Bahama Island Life invites a young, active constituency of consumers to leave everything else behind, imagining what it would be like to never leave the beach, play all day and walk all night under the stars,” said Rob Goldberg, senior vice president of marketing at The Island Life masterbrand. Tommy Bahama. Perfumers Frank Voelkl and The brand’s focus on younger consumers, an effort that began Ilias Ermenidis of Firmenich conwith 2013’s Tommy Bahama for cocted both eaux de parfum. The Men and 2014’s Compass, has women’s scent includes top notes helped contribute to steady of juicy pear, sparkling mandarin growth. According to Parlux, and star anise; a heart of white the brand’s fragrance licensee, rose, peony and peach blossom sales of Tommy Bahama have blooms, and a drydown of vanilla grown at an average of 30 per- bean, sandalwood and musk. The cent a year, with the brand men’s juice has top notes of crisp growing 37 percent year to date. bergamot, artemisia and tarra-
Courtney Jerden
COURTNEY JERDEN, PRIV Priv isn’t just another on-demand beauty company hoping to attract an array of consumers strapped for time. The beauty booking app combines instant gratification with personalization. “Priv is trying to create a lifestyle,” said Courtney Jerden, executive vice president of Priv. Unlike other booking apps, Priv allows consumers to select their stylist. Also, they can read reviews and view images of the professional. Jerden noted one of Priv’s professionals is up 40 percent in repeat appointments because of the relationships that have been created with the clients. But how does an app evolve? According to Jerden, Priv is exploring adding product to purchase on the app. “We
hope to put product within our recipes whether it’s a direct click through to purchase the product or a direct click to order the product via Priv,” she noted. “Or the next time you Priv a service, the stylist will bring a product straight to their doorstep.” Blowouts, manicures and massages are top categories for Priv, but that could change at any minute since they just added men’s grooming and spray tanning. “Is on demand just a shortlived trend?” Jerden asked the audience. “It’s a long-lasting trend that’s shaping our lifestyle consumer. If you can get the service and product now, why would you ever wait for it in the future?” — J.C.
Inter Parfums SA Acquires Rochas By JENNIFER WEIL
JERDEN AND CHOI PHOTOS BY PATRICK MACLEOD
Grace Choi
GRACE CHOI, MINK Come summer, consumers will be able to print makeup from the comfort of their homes with Mink, a desktop printer that produces cosmetics. “It can take any image and instantly transform it into a wearable color cosmetic, turning any phone, camera or laptop into an endless beauty aisle,” said Grace Choi, founder of Mink. “Instead of dyeing paper, it dyes powder.” Using a $79 HP 6100 ink-jet printer, food-grade edible ink and the technology she built, Choi can print eye shadow, blush, brow powder and more just by selecting a color on a computer. By adding different mixing mediums, the printer can also create categories like lipsticks and nail polish. “We’re also working very hard on a consumer version and hope to start taking preorders this summer for our beta kit,” she said. “The kit will in-
clude a printer, ink cartridges and substances, which are cosmetic grade.” The cost? $200. Choi envisions a young girl watching her favorite beauty vlogger talk about a new eye shadow shade. Wanting to try it herself, the girl pauses the video, selects the color and then clicks print. In a matter of seconds, the eye shadow is ready to use. “I believe new and interesting digital applications specifically for makeup printing will materialize, such as a virtual makeup try-on app that allows you to print out the entire desired look with the press of a button,” she said. “The ‘buyit-now’ button turns into the ‘print-it-now’ button.” While she originally came up with the product to target younger women, Choi has seen a diverse audience take interest. Choi added, “It turns out, young women and more mature women are all digitally savvy.” — ANNA DYSINGER
gon; a heart of geranium and nutmeg, and a drydown of patchouli, cedarwood, vetiver and ambrox. The women’s bottles feature a gold hammered cap intended to evoke a piece of jewelry, while the glass men’s bottle evokes the texture of rattan, intended to pay homage to the rustic, natural state of island living, noted Don Loftus, president of Parlux. The women’s scents will retail for $60 for 1.7 oz. and $78 for 3.4 oz. The men’s fragrances are priced at $54 for 1.7 oz. and $70 for 3.4 oz. The scents are rolling out to about 1,000 department and specialty store doors in the U.S., including Macy’s, Belk, Dillard’s, Tommy Bahama stores nationwide and tommybahama.com. While Goldberg and Loftus declined comment on projected sales, industry sources estimated that the new masterbrand could do $8 million at retail in its first year on counter.
PARIS — Inter Parfums SA is the latest beauty company to take a gamble on fashion. The firm said Thursday that it is acquiring the Rochas fashion and fragrance business from Procter & Gamble Co., as the consumer products giant rethinks its place in beauty overall. Philippe Benacin, chairman and chief executive officer of Inter Parfums SA, confirmed the transaction and purchase price of $108 million. The deal marks a first step into fashion for the Paris-based subsidiary of Inter Parfums Inc. of New York, whose stable of licensed fragrance brands includes Montblanc, Jimmy Choo and Van Cleef & Arpels. Benacin said the Rochas acquisition would “open up new opportunities in terms of creativity as well as aesthetic design and marketing choices. It will also allow us to apply a
point stopped manufounded his house in facturing the Thierry the Thirties. Following Mugler fashion brand his death in 1955, the (that has since been company dismantled its revived) to focus on its fashion operation, opthit fragrances. ing to concentrate on Benacin said the fragrance. It launched Rochas fashion comscents such as Madame ponent is “very imporRochas, Monsieur tant” and will remain. Rochas, Eau de Rochas He also explained Eau and Audace. de Rochas and Rochas German cosmetics Men will be kept the giant Wella purchased same, while the rest of Rochas in the late the fragrance portfolio Eighties and resuris to be reconsidered, rected the fashion as with scents like Femme, an image machine. But Madame and Tocade Irish designer Peter possibly being updated. O’Brien, on whom the Rochas in 2014 reghouse called in 1989, istered net sales of $46 failed to generate buzz. million, bolstered priOlivier Theyskens sucmarily by the Eau de ceeded O’Brien in 2003. Les Cascades Rochas fragrance line. Despite critical acclaim, de Rochas That includes $2 milP&G, which inherited Rochas that year as part of its lion of royalties generated by purchase of Wella, recognized licensee agreements for Rochas fashion wasn’t a core competency fashion and accessories. Benacin said: “Under Inter and closed the then money-losing Parfums’ scope, we could genRochas fashion business in 2006. erate approximately 25 million euros [or $26.8 million at current exchange] of sales in 2016.” The Rochas acquisition, expected to close in the first half of this year, will be payable in cash and financed through a medium-term loan. Boutique investment firm Ohana & Co. advised P&G on the sale of the Rochas fashion At the time, a P&G spokes- and beauty activities. Inter Parfums SA has been woman said: “Running a fashion business in terms of the particularly open to acquisidistribution chain requires tions since the March 2013 terspecific skills. We had to make mination of the Burberry beauty license agreement. tough choices.” The Rochas sale comes as P&G Rochas subsequently reintroduced fashion again and today, is slimming down to focus on more Alessandro Dell’Acqua is the profitable brands. Thirty-five of those have already been sold, house’s creative director. Other beauty companies that and sources said the company is have struggled with fashion weighing a potential initial pubinclude L’Oréal, which bought lic offering of its beauty business, Lanvin in 1994 and sold it in which also includes brands such 2001 after attempting to engi- as Olay and SK-II. The Wella busineer a makeover miracle and ness is reportedly being shopped with the stated aim to continue around, and Frédéric Fekkai is “refocusing on its core beauty said to be looking to buy back his business.” Groupe Clarins at one luxury hair-care brand.
Historically, it’s been difficult for companies with a beauty focus to successfully run fashion labels. global approach to managing a fragrance brand boasting a very high name recognition and without time constraints.” He told WWD: “Rochas was a major brand of the French fragrance industry. I think [it has] ingredients to do well.” That, Benacin explained, includes its fashion component. Yet historically, it’s been difficult for companies with a beauty focus to successfully run fashion labels. The Rochas fashion brand has been shuttered numerous times in the past. Marcel Rochas, a couturier known for his feminine silhouettes and for inventing a bustier, called the guêpière,
PHOTO BY JOHN AQUINO
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WWD FRIDAY, MARCH 20, 2015 7 WWD.COM
Diddy’s New Day: Combs Reenters Fragrance By MARCY MEDINA
The 3AM scent. every few months to stay relevant or flush — but it can’t hurt. “I think his track record is going to drive this new fragrance,” said Gerry Philpott, chief executive officer of E-Poll Market Research, whose clients include fashion and beauty firms looking to assess the marketability of various celebrities. “He’s like Oprah in a way, with businesses in different areas. He has market stability and can get people to spend money, and in a market that’s so up and down, that’s invaluable. [3AM] may not set the world on fire, but people will try it. If they like it, it’ll underscore his image as a multifaceted mogul, not just a single entity.” Combs — never one to doubt his talents — naturally insists his timing is right.
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For me, it was important to take a break from celebrity persona fragrances, because we were kind of jumbled up with them. — SEAN “DIDDY” COMBS
founder of trend forecasting and brand consultant firm Trendera. “It used to be we had so few access points to [celebrities] that you bought anything you could, which is why so many of those fragrances were so successful. These days, you have more access to celebrities than you probably want, and if you are buying their fragrance, it’s not because you want to smell like them, it’s because you believe there’s more to them. With Sean, you believe he’s a smart businessman, and if he’s coming out with a new fragrance it’s because he knows something about the business. Young people might think he’s rich and enduring and has a lot going on, so they’re going to suss it. Are they going to put down $70 for it? Maybe not, but their older brother might.” Combs still helms his record label Bad Boy Records, now a division of Universal Music Group, and Sean John has licensed products in 17 categories with exclusive distribution in Macy’s that tallies annual retail sales of more than $500 million. He ranked No. 31 on 2014’s Forbes Most Powerful Celebrities list and had earnings of $60 million. Certainly he doesn’t need to pump out a new perfume
fragrances that don’t take you out of the mood.” With notes of bergamot (one of Combs’ favorites, also in his last two fragrances), mandarin [orange], orange blossom, cardamom, geranium and fig leaf, 3AM has a unisex appeal that Combs says will be part of the marketing plan. When asked about some of his peers whose fragrances have floundered, Combs notes, “It depends on who the artist is and if that’s their passion. This is my passion, but sometimes you need to not go there because you don’t want to get associated with it, and I’m not just talking about celebrities, I’m talking about a gimmick. So if the gimmick is say, black, I wouldn’t want to do anything black.” Indeed, the rectangular bottle and its contents are crystal clear with nary a logo in sight. The number three is subtly indicated in the sculptural, blocklike patterns in the glass. “These to me are different chambers of your emotions,” he said of the design. “Everything I tried with ‘3AM’ on it took away from the bottle.” The fragrance comes in two sizes, 50 ml/1.7 oz. eau de toilette for $55 and a 100 ml/3.4 oz. for $70. The collection also includes aftershave pour, shower gel, aftershave balm and a deodorant stick. Jacavi Beauty Group holds the fragrance’s license for and is the manufacturer. Estée Lauder Cos., which dropped the license after the first two scents, declined to comment, but sources said the beauty giant was no longer confident in its ability to ring in sales. But Combs stuck with Lauder executive Diana Espino, who has been global vice president of marketing and brand development at Parlux since 2012. In typical Combs-ian fashion, he is upbeat about starting fresh. The man who at one time seemed to change his name every time he had a new record — or girlfriend — has always been focused on looking forward, not pondering what might have caused him to fail in the past. He also has always been able to spin a tale exalting his accomplishments. “I think we have a new contemporary take, a Millennial take, on what a fragrance is supposed to smell and look like. I think a lot of people are stuck in the old age right now,” he said. “This will be the first fragrance launched correctly in the social media age. This will be social by design. This will not be linear TV and print and outdoor ads. We will start socially and push everything up.” The marketing plan includes interactive displays
“Everything I do is about whether I feel it, you know? Right now, this is the type of energy that I’m feeling and that I want men and women to experience,” he said. “3 a.m. is like, not a regular person’s time. It is for me, so I just want to share with people another level of freedom and truth that you have at 3 a.m. Anything can happen.” That name might be a hard sell for another personality, but retailers liked it, according to Donald Loftus, president of Parlux Ltd. “Frankly, I was concerned about how to present the name and what it means,” Loftus said. “But the Macy’s team said, ‘God, I love that.’ Even 22-year-olds loved it. So any fear that the customer won’t understand what it means is unfounded.” For the commercial, Combs wanted to convey “a little bit more fantasy and a little bit more sensuality. Without giving anything away, it’s very sensual, it’s very bad, it’s very provocative.” A glimpse at the storyboards on sets reveals a plotline in which walls are literally broken and a beautiful woman is swept off her feet, natch. As for the scent itself, Combs said, “One thing all my palettes have in common is they are extremely clean. I love
DIDDY PHOTO BY STEFANIE KEENAN; BOTTLE BY JOHN AQUINO
SEAN “DIDDY” COMBS wants to hit the “reset” button. After a six-year hiatus from the fragrance business once Estée Lauder Cos. Inc. didn’t renew his license, Combs is back on May 6 with a new fragrance, 3AM, under a new partner, Parlux. He is hoping he can regain relevancy in the category, even as the celebrity fragrance sector appears to be dissolving faster than a test spray in the air. Which is perhaps why Combs doesn’t want it to be called a celebrity fragrance. He views himself as equal parts fashion player, music mogul and pop culture pulse-reader. That may not render him immune to market forces, but he’s aiming to get ahead of the tide by leveraging his established status and playing to Millennials via social media. “I take my hat off to all celebrities who have a fragrance to give people a part of their lifestyle. But for me, it was important to take a break from celebrity persona fragrances, because we were kind of jumbled up with them,” said Combs, whose last launch was in 2009 with I Am King, a follow-up to 2006’s Unforgivable. “We’re a true fashion label and this is something we take very seriously. So to make people miss it, that was my plan.” Speaking to WWD from the downtown Los Angeles set of 3AM’s first commercial shoot, in the penthouse of a pricey residential loft building, Combs has changed out of his custom suit into a black Versace tracksuit to enjoy some fresh air and a coffee outside his trailer, drawing more than a few curious glances from pedestrians. Combs may have launched his first fragrance at the height of the celebrity fragrance craze, but he’s decided to step back into the ring at a time when retailers are beginning to lose faith in the long-term payoff of personality-driven scents. Can he prove them wrong and stand apart from the pack? “Gone are the days when someone just buys your product because you’re a celebrity,” said Jane Buckingham,
Sean “Diddy” Combs on the set of the fragrance ad shoot.
and engaging customers using social currency, such as rewarding shared photos and posts with prizes and product. “It is really smart,” Buckingham said. “The beautiful thing about Millennials is they are so open, so when you start talking to them, at least they’re willing to listen. Even if he’s not selling tons, he is getting in front of them and trying. If you don’t talk to them, it’s like you don’t exist. You lose all relevancy.” Combs still looks up to old-school icons. “Every time I smell Chanel I want to know what Coco Chanel was like. I want to hang out with her. I feel a scent could last forever, just like a record. I say to producers all the time, ‘Me and you are here right now, but only the song survives.’ It’s the same type of thing with a fragrance.” As for the perceived lack of steam for celebrity fragrances targeting young customers, Loftus said, “If I were a department store, I would worry about who they are walking away from. There are young kids already lost to them shopping at Forever 21, and the one place where they could still ring them in was fragrance. But in their minds, it’s not worth it because it doesn’t anniversary. Young customers are fickle. You need to come up with something new, not walk away because it’s too hard.” Espino notes there’s already a plan to add newness for 3AM’s anniversary. “Something in the fashion realm. Probably 4AM,” she laughs. For better or worse, Philpott doesn’t see celebrity fragrances going away soon. “It will continue because it’s so hard to launch anything new these days unless you are a known name or you have a celebrity attached. Why do you think every designer has a Jenner or Kardashian at their show? It’s a guarantee they’ll get seen by the general public.” Combs, who has also dabbled in film and has marketing partnerships with Ciroc vodka and DeLeon tequila, says his focus is on fragrance and Sean John for now. And he harkens back to another classic. “The plan was and still is to have the world. Our hero is Ralph Lauren. We just wanted to follow in the footsteps of greatness,” he said. “When we actually beat out Ralph Lauren for the CFDA award [in 2004], I think that’s what made it clear that we did chart our own path, but I have to give credit where credit is due. You gotta start someplace and you gotta look up to somebody.”
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WWD FRIDAY, MARCH 20, 2015
By EVAN CLARK ACTIVIST INVESTOR James Mitarotonda — who helped shake up The Jones Group Inc. and Dillard’s Inc. as head of Barington Capital Group — is ready for his next venture and is bringing fashion veterans Frank Mori and Robert Mettler along for the ride. Barington has teamed up with financial services company Hilco Global and raised $43 million for Barington/Hilco Acquisition Corp. — a publicly held blank check company that has up to two years to spend the money to acquire a consumer goods firm. That means Mitarotonda and gang are on the hunt for a company with a valuation of $100 million to $500 million that would benefit from being a public company, but doesn’t want to bear the expense of an initial public offering. “The economy is in pretty good shape,” Mitarotonda said.
“[Lower] gas prices will help a lot of industries.” Although the stronger job market hasn’t boosted spending as some had hoped, he said, “Eventually I do think the retail industry will benefit from increased employment.” An e-commerce company or a digitally savvy brick-andmortar player could be of particular interest. “Retail will continue to go through something of a transformation,” Mitarotonda said, speaking of the changes new technologies have brought to the industry. “If a retailer handles it well, they will certainly benefit from it.” Ultimately, he said both channels are needed and noted that “it’s a combination of the two that will create the successful retailers of the future.” As Barington/Hilco looks into that future it will have plenty of fashion experience to lean on. Among the company’s directors are Mori, who served as Donna Karan International’s first chief executive officer and
PHOTO BY J. LAWRENCE LANDAW
Barington, Hilco Raise $43M for Acquisition Firm
James Mitarotonda was also ceo at Anne Klein & Co., and Mettler, who held a series of high-powered jobs at Sears, Roebuck and Co. and then Macy’s Inc. According to regulatory filings, former Warnaco ceo Joseph Gromek is also an investor, although not on the company’s board.
Mori said it’s a good time to be on the hunt in fashion. “There are a fair number of opportunities and situations out there that we’re looking at,” he said. The companies on the market generally fall into two groups, he said. ■ Firms that have been successful and are growing, but aren’t terribly sophisticated and don’t have the experience or capital to get to the next level. ■ Brands that have been around for a long time and are attempting to revitalize themselves. Mori said brands in the second group require a lot of care. “It’s a business where you’ve got to have a lot of top-of-mind awareness and you’ve got to be thought of as an aspirational product category or brand name, a Michael Kors or whatever it might be,” Mori said. “Once you’ve lost it and once you’re on the downside of the curve — and a lot of people stay at it — I think it’s harder. “There are very few apparel brands — 10 or 15 or under —
Fisher Unveils Spring Vision Campaign By LISA LOCKWOOD
Fisher intends to reach out to other fashion labels to create demand for responsible dyes in an effort to establish a new industry norm. To reverse the global resource consumption trend, Fisher pledges to use less water, emitting less carbon and producing less fabric waste, as well as investing in alternative energy. By 2020, Fisher pledges that its U.S. operations won’t just be carbon neutral, but will be carbon positive. Another aspect of the campaign is investing in alternative supply chains that pay fair wages and creating investment programs like The Handloom Project, a six-year effort designed to empower weavers in rural communities. The brand
NEW YORK — No excuses. That’s the tag line for Eileen Fisher’s Vision2020 campaign this spring, which details steps to reach a goal of 100 percent sustainability over the next five years. The brand has launched a $1.7 million national ad campaign, supported by social media, public relations, online and its retail stores. The 30-year-old company has outlined eight key categories: materials, chemistry, water, carbon, conscious business practices, fair wages and benefits, worker voice, and worker and community happiness. “To create a truly responsible supply chain, we need to scrutinize everything we do, from the field to the factory to the landfill,” said Candice Reffe, cocreative officer. “We need to take a hard look at what’s often swept under the rug — toxins, carbon emissions and low worker pay, to name a few. It won’t be easy. We’ll need the help of our customers, our manufacturing partners, and like-minded brands. And we’ll do it with two simple words: no excuses.” Fisher will continue on its path toward fiber sustainability by using only organic cotton and linen in its clothing by 2020. For its spring 2015 collection, 87 percent of its cottons are organic, up from 70 percent a year ago. Sixtyeight percent of the linens are organic this spring, up from 59 percent a year ago, according An image from the Eileen Fisher campaign. to Amy Hall, director of social will also continue its work to reuse consciousness. In addition, the brand intends to clothing and reduce waste with use only wool from sheep that are its clothing recycling program. By humanely raised on sustainable 2020, the program is on target to farms and will substitute Tencel for hit 1 million recycled items, which rayon. To improve its use of color, the brand will resell. Those items Fisher will continue its partner- that can’t be resold will be turned ship with Bluesign technologies into raw material for new textiles working toward responsible chem- or made into new clothes. “We’ve been on a path for a ical, water and energy usage. By 2020, about 30 percent of all Fisher while and our commitment has items will be bluesign certified, deepened and broadened across signifying that the China-imported the company,” said Eileen Fisher, silks and linens are dyed and fin- the company’s founder, Thursday. ished with fewer chemicals, less “We’d like to transform the fashion water and less energy. In addition, industry around sustainability, and
we hope to be a part of modeling that. We’ve come to realize with our 2020 vision we can’t do it alone.” She noted only 1 percent of all cotton is organic so “that’s a lot of pesticide.” She also pointed out that the fashion industry is the second largest polluter in the world, second only to the oil industry “which is scary.” Twenty percent of Fisher’s clothing is made in the U.S., up from 13 to 15 percent five years ago, she said. Hall added that less than 3 percent of all clothes actually purchased in America are made here. “Our hope is to continue to inch it upwards,” Hall said. Fisher’s clothing is sold at more than 60 Eileen Fisher retail stores in the U.S., Canada and the U.K., as well as at major department stores and eileenfisher.com. Last year, the company generated $429 million in volume, up 5 percent from a year ago, Fisher said. The company’s on track to generate $450 million in sales this year, she said. In other news, the White House said Thursday that President Obama will issue an executive order that will cut the federal government’s greenhouse gas emissions 40 percent over the next decade from 2008 levels, saving taxpayers up to $18 billion in avoided energy costs, and increase the share of electricity the government consumes from renewable sources to 30 percent. Complementing this effort, several major federal suppliers are announcing commitments to cut their GHG emissions. Together, the combined results of the federal actions and new supplier commitments will reduce GHG emissions by 26 million metric tons by 2025 from 2008 levels, the equivalent of taking nearly 5.5 million cars off the road for a year. The new commitments support the U.S.’ international commitment to cut net GHG emissions 26 to 28 percent below 2005 levels by 2025, which Obama announced in November 2014 as part of an historic agreement with China. — WITH CONTRIBUTIONS FROM ARTHUR FRIEDMAN
that have consumer loyalty,” he said. “The retailer or the consumer or both are always looking for the next big thing. It’s very rare in that business — if it exists at all — to have anything new. I have yet to see a three-sleeve jacket.” Mettler added that, “The gap between outstanding performance and just so-so performance has gotten wider and wider over the last few years… Having a great customer relationship, whether that be online or in store, is the best formula for real growth. “And the problem with real growth today is that real growth comes from, unfortunately, taking share from others, not necessarily an actual growth in the industry,” he said. “And we’re going through changes in customer behavior. Women’s apparel is certainly not the best performing at retail at the moment for lots of different reasons. For me, it’s an opportunity for people who understand how to do business in multiple categories.”
Nike Beats Expectations Despite Currency Effect By ARNOLD J. KARR ONGOING CURRENCY pressures didn’t prevent Nike Inc. from posting a 16 percent increase in third-quarter profits that surpassed Wall Street’s expectations, but they did keep the athletic products giant from meeting anticipated revenue levels. In the three months ended Feb. 28, Nike’s net income expanded to $791 million, or 89 cents a diluted share, from $682 million, or 75 cents, in the year-ago quarter. That was 5 cents above the analysts’ consensus estimate for EPS of 84 cents. But the continuing strengthening of the dollar had a palpable effect on top-line results, producing a number of large discrepancies between reported and currencyneutral results. Even with the currency pressure, revenues rose 7 percent, to $7.46 billion from $6.97 billion, but would have risen 13 percent at constant currencies to nearly $7.9 billion. The consensus was for revenues of $7.62 billion, above the reported figure. Citing currency pressures, uncertain input costs and a turbulent geopolitical landscape, Mark Parker, president and chief executive officer of Nike, commented on an afternoon conference call, “This is the environment in which all companies now operate, and Nike is not immune to it. The difference for Nike is that we see this as an opportunity to create further separation in the marketplace. Our globally diverse portfolio of geographies, categories, brands, product types and distribution channels gives us a distinct competitive advantage.” Nike brand apparel revenues in the quarter rose 3.5 percent to $1.96 billion but were ahead 9 percent at constant currency. The brand’s footwear business grew 8.4 percent, to $4.57 billion, but were up 14 percent at constant currency. Converse continued to gain momentum, with sales up 28.1 percent to $538 million and ahead 33 percent without the effects of currency fluctuation. The company’s future orders, reflecting merchandise expected to be delivered between this month and July, were up 11 percent without the currency impact but ahead 2 percent with it. The strongest future orders number came from Greater China — ahead 22 percent overall and 23 percent at constant currency — followed by North America, up 15 percent on both bases. Gross margin expanded to 45.9 percent of revenues from 44.5 percent a year ago, reflecting the company’s shift into higher-margin products and, in the case of its retail network, businesses. Direct-to-consumer sales of the Nike brand were up 40 percent in the quarter, according to Trevor Edwards, president of the Nike brand. After rising 0.8 percent to $98.32 during a difficult day on Wall Street, Nike’s shares continued to climb after the markets closed and it disclosed its quarterly results. In afterhours trading, the stock added another 4.3 percent, moving to $102.51. Their 52-week high, reached on Nov. 28, is $99.76. In the first nine months of the fiscal year, the company’s net income expanded 20.7 percent to $2.41 billion, or $2.72 a diluted share, while revenues were up 12 percent to $22.82 billion.
WWD FRIDAY, MARCH 20, 2015 9 WWD.COM
Smartwatches Take Over at Baselworld PHOTO COURTESY OF THE IMAGE GATE
Will.i.am and Marco Bizzarri
connected watches at the fair this year. However, Ben Arnold, senior analyst at The NPD Group, said, “news out of Basel suggests they’re [watchmakers] not as focused on the space. They’re not seeing this as a big shift in their business.” Arnold said the Apple Watch has motivated some luxury watch manufacturers to consider smartwatches as an opportunity and take the category more seriously. “What the Apple Watch announcement has done is get a larger pool of consumers interested in watches,” he said. “Apple is growing the addressable market for watches. “We’re still talking about smartwatches as separate from traditional watches,” Arnold said. “For the early adapters, smartwatches were geeky-looking. Now, people are saying, ‘If it’s something I’m going to wear on my wrist, it has to fit in with my personal style.’” Even companies directly competing in Apple’s main price seg-
ment, such as Citizen and Seiko, come in a range of styles with said they are not interested in gentler prices — about $199 to $299 — than those expected for venturing into smartwatches. Stéphane Linder, president the new collaboration. “The and ceo of Gucci Timepieces, dis- price will be in line with the missed the notion that smartwatch- Tag Heuer price segment,” an es would sound the death knell of Intel spokeswoman said. Tag traditional Swiss watchmaking, Heuer watches for women range predicting instead that the two in price from $1,300 to $22,000. Intel has been pushing into types of watches would coexist. “I’m not a guru, but I think, the wearables category, teaming of course, it will have an im- up with Opening Ceremony and pact. However, I think that a Barneys New York to develop luxury watch, you buy it be- My Intelligent Communications cause you want to adopt a life- Accessory, a wearable-tech style. A watch can be anything bracelet wrapped in snakeskin, from 10 euros to 20,000, 30,000 pearls and lapis. The company euros, and you sell a lifestyle, launched BioSport earbuds an added value, an emotional last year and signed a deal with value, a brand, so I think this Luxottica for the development type of product will always of high-tech glasses. Intel is playing the field exist,” he said. with partners at both ends While Tag Heuer, of the price spectrum. Google and Intel deIts previously unveiled clined to divulge specifwatch partnership ics about their project, with Fossil Group is the collaboration is “still very much movexpected to proing forward,” the duce watches with spokeswoman said. Android Wear feaShe added that tures such as traffic Intel’s big tent phialerts, weather and losophy will pay off. voice command, and “We don’t believe there apps such as Google will be one product, dePlay Music and Google sign, form factor or soluFit, which tracks health tion that is the killer app in and fitness, including wearables, given that wearsteps, distance, calories An Hublot able devices span a wide burned and heart rate. timepiece. range of use cases and David Singleton, diprice points. As consumer rector of engineering of Android Wear, said he hopes views of wearable devices conthe effort will bring “a unique tinue to change and more solublend of emotion and innova- tions come to market that push tion to the luxury market. Using the envelope in design, functionthe Android Wear platform, we ality and value, we will continue can imagine a better, beautiful, to see wearable devices become more commonly accepted.” smarter watch.” Android Wear watches con— WITH CONTRIBUTIONS nect to Android phones and FROM LUISA ZARGANI
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The Black Eyed Peas frontman dubbed the collaboration “fashion-ology” — connoting a mix of style and technology — and said the device, an upgraded version of the Puls bracelet he launched through his technology company I.am+ last year — would allow users to take selfies and conduct video chats. “We’re proud to have figured out an awesome way to have an operating system from the wrist up, but designed so you want to hold your wrist up and express yourself through the things that you’re wearing — that’s what we call fashion-ology,” he said. “I’ve been a Gucci customer and a Gucci fan for years. To match technology with real fashion is an incredibly powerful combination.” Bizzarri said Will.i.am was chosen not for his celebrity, but for his technological vision. “It’s not the usual collaboration between a celebrity and a fashion brand. It happens that the person managing this technological company is a celebrity as well, but it’s not the reason why we did it,” he explained. Functionalities will include the ability to make and receive phone calls, send and receive text messages and e-mails, music, maps, calendar, fitness and a sophisticated personal assistant activated by voice command. Details about the timing of the launch or the price range were not yet available. The launches were expected to be only two of a slew of new smartwatches unveiled at the fair. Baselworld managing director Sylvie Ritter estimated that more than 10 traditional Swiss watch brands are to present
Eva Mendes Expands New York & Co. Brand York & Co. stores and online, is being showcased in six side-byside boutiques ranging in size EVA MENDES is carving out a from 800 square feet to 1,000 square feet. The shops, dubbed fiefdom at New York & Co. The actress, whose namesake the World of Eva, opened on Eva Mendes by New York & Co. Wednesday with separate enline launched at the specialty trances and dressing rooms. “Eva retailer in 2013, is for spring has a different unique collection adding bridal, shoes, handbags and aesthetic that we wanted to and an expanded range of jew- see,” Scott said of the boutiques, elry to her existing collection of which have clean lines, are merchandised by color and occasion, dresses and separates. Mendes in May will intro- and feature life-sized photos of duce Eva Mini, a capsule col- Mendes wearing the collection. “She’s so powerful as a brand, lection for girls ages we thought it was the right six months to four A dress from years. The actress the collection. time to look at it. Who knows about freestanding stores,” may have had babies Scott said, while not ruling on the brain — she them out. and longtime partWhile Eva Mendes ner Ryan Gosling by New York & Co. is welcomed a daughstill a small percentter in September. age of New York & New York & Co. is Co.’s total business — investing in the brand. it’s in the single digits A television commerin most stores and doucial featuring Mendes ble digits in the chain’s will begin airing this top 20 units — “it really month in Washington, overpenetrates online, D.C., and Maryland. where it does double“Our hope is to bring digits,” Scott said. it to our best markets,” Mendes, who’ll apsaid Greg Scott, chief pear next month in executive officer of “Lost River,” a film New York & Co. “We directed by Gosling, have a jewel, Eva doesn’t consider herMendes, so let’s marself a designer, but ket that.” has distinct style and Mendes’ collecknows what makes tion, which is availwomen look good. able in all New PHOTO BY ALEX CAESAR
By SHARON EDELSON
“I wear everything and use everything in the line,” she said. “I’d never design something I wouldn’t wear myself.” To make the point, she picked up the new faux leather crossbody handbag. “This is
has a point of view that’s very retail oriented. When we go to a meeting with her she has a ton of ideas and inspiration.” Mendes said she’s inspired by old photos of her mother taken in Fifties Cuba. “Her
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We live in a really fun time, with the H&Ms taking over. Now, it’s cool to find a bargain. — EVA MENDES
not a design flaw, but I noticed that the bag stays open and everybody can see your business,” Mendes said, making a mental note to tweak the bag next time. “The more people I can get product to, the better,” Mendes said. “We live in a really fun time, with the H&Ms taking over. Now, it’s cool to find a bargain. Growing up I was embarrassed that my family could only afford inexpensive clothing.” Most of the apparel is priced under $100: T-strap shoes are $59.95 and wedges, $69.95. The crossbody handbag is $69.95, the Venezia handbag with chain detail, $59.95. “She’s so involved; it’s so much her style and aesthetic,” Scott said. “She was on the turban before it even started and she was on the full skirt. We couldn’t sell a full skirt before Eva. She
waist was always cinched and her hair was always done. I find that romantic. I look for photos of women who aren’t the usual suspects. I love Sophia Loren and Claudia Cardinale, but also Daliah Lavi, who was a beautiful Israeli actress. I find patterns in my own closet. If I see a Goodwill or Salvation Army, I try to get the goods.” Scott said that Mendes is “the jumping-off point for our whole subbrand strategy. We believe we have an opportunity for unique subbrands — the Seventh Avenue suiting collection, SoHo jeans and Love NYC, an ath-leisure brand.” Scott said there’s also an opportunity to grow the sportswear component of Eva Mendes by New York & Co., which is driven by sweaters and tops.
VF CEO Sees 51.3% Pay Spike for ’13 By ARNOLD J. KARR VF CORP. chief executive officer Eric Wiseman saw his 2014 compensation increase by more than half as the cash component of his pay grew by nearly a third. Wiseman’s total compensation last year was $17.8 million, 51.3 percent above the $11.8 million reported for 2013, according to the definitive proxy filed with the Securities and Exchange Commission Thursday. The cash segment of his pay package grew more modestly, rising 32.4 percent, to $4.7 million from $3.6 million, as his base salary was up 9.1 percent, to $1.3 million from $1.25 million, and his cash bonus — or nonequity incentive plan compensation, in the language of the proxy — grew 47.7 percent to $3.4 million from $2.3 million in the prior year. The combination of stock and option awards was $8.2 million, 6.1 percent above the $7.8 million the chairman, president and ceo of VF was granted in 2013. Awards are reported at fair market value on their grant date although, because of vesting schedules and fluctuations in stock prices, they aren’t necessarily realized by the recipient. The bulk of the more than $6 million gain in Wiseman’s compensation came from the principally actuarial calculation of “change in pension value and nonqualified compensation earnings,” which leaped to $4.8 million from about $372,000 in 2013. These reflect swings in interest rates and estimate life expectancy. Robert Shearer, who retires this month after 17 years as VF’s chief financial offi cer, saw his compensation nearly double in his fi nal full year in the post, growing 88.8 percent to $5.4 million from $2.9 million in 2013. But that amount included $2.1 million in the pension and deferred compensation column, versus zero in 2013. Including stock and option awards but not the “change in value” amount, his compensation rose 16.8 percent to $3.3 million. VF, aiming for revenues of $17.3 billion and earnings of $4.50 a share by 2017, last year saw revenues rise 7.6 percent to $12.28 billion, making it the largest U.S.-based manufacturer of apparel and accessories. Net income, depressed by a $396 million impairment charge for brands in its contemporary coalition, fell 13.4 percent to $1.05 billion, while adjusted EPS climbed to $3.08. VF’s portfolio of brands includes five that generate more than $1 billion in sales a year — The North Face, Vans, Timberland, Wrangler and Lee.
10 WWD FRIDAY, MARCH 20, 2015
She Wolf
eye
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I just thought it sounded cool. Someone told me once I looked like a wolf.
— ELLIE ROWSELL ON THE BAND’S NAME
Today alone, they’re playing two shows — 1:30 p.m. at Red Eyed Fly, then 4 p.m. at The Mohawk — a preview of how hectic things will become in the next year, when they headline their first U.K. tour.
Joff Oddie, Ellie Rowsell, Theo Ellis and Joel Amey.
Ellie Rowsell
“I don’t know what a big break is, but the moment I was like, oh, this has moved on from trying your luck and going to a venue and you [have a] crowd of people who are already in the pub [to] actually realizing that people are leaving the house to come to see you,” Rowsell says. The band began as a duo, and like many modern-day couplings, would not exist without the Internet. “I wanted to start playing live just on my own, but I didn’t really want to play the guitar, and I was a bit too shy to ask people I knew to play with me, so I went on a guitar forum kind of thing,” she says. Enter Joff Oddie. “He had just moved to London to go to university,” she says of their fateful meeting six years ago. Their band’s name was inspired by a short story in “The Bloody Chamber” by Angela Carter. “They’re all kind of twisted fairy tales. Most of her work has feminist undertones, and they’re all quite rude and
dirty. I just thought it sounded cool,” Rowsell says. Plus, “Someone told me once I looked like a wolf.” Later, with the additions of drummer Joel Amey and bassist Theo Ellis — the four-piece band honed in on an alt-rock sound and released a few EPs, including last year’s “Creature Songs,” which landed on some important best-of-year lists, like the BBC’s Sound of 2015 and Billboard’s Artists to Watch in 2015. Rowsell, whose fantasy is to one day tour with Kings of Leon, describes the new album as “an amalgamation of lots of old stuff and lots of new stuff. I can’t pigeonhole it.” Though she’s the only girl in the band, she doesn’t dwell too much on her gender. “I don’t really think about it, until I’m hanging out with a girl on tour and then I’m like, ‘Oh, I forgot I love painting my nails,’” she says, laughing. “I kind of adapt to my situation. Not that I become a boy. Of course not. It’s kind of sad. I’ve stopped being girly.” Thankfully, her bandmates can relate, she says. “All the guys in the band are in touch with their feminine side.” — JENNY SUNDEL
Extra Smalls
Anais Mali
PHOTOS BY STEVE EICHNER
Jacquelyn Jablonski
Lily Donaldson and Joan Smalls
Peter Brant Jr. and Harry Brant
ROWSELL PHOTO BY LEXIE MORELAND; BAND BY JORDAN CURTIS HUGHES
ELLIE ROWSELL sits in the lobby of the Omni hotel in Austin, Tex., on a recent afternoon. She wears a coquettish American Apparel minidress and Doc Martens. “I’m really more of a jeans-and-T-shirt girl. I don’t think I own a piece of designer wear,” she says. “Not that I’m opposed to it. But, well, I can’t afford it.” That could all change soon. Rowsell, 22, is the lead singer of the London-based quartet Wolf Alice and she was making time at the hotel a few hours before one of the five back-to-back gigs they’ve booked at South by Southwest ahead of the June 23 release of their debut album, “My Love Is Cool.”
MODELS, MODELS, models. Everywhere one looked Wednesday night at the Gramercy Park Hotel in New York there were models. Jacquelyn Jablonski, Lily Donaldson, Anais Mali and ersatz model Peter Brant Jr. were on hand to toast one of their own, Joan Smalls, as she became the latest catwalk beauty to hook up with a denim brand — True Religion in her case. “Models are in and out of clothes so much, we know what fits and we know what feels good. So I think it’s just a natural progression for models to start designing denim,” she said of a trend that also includes Karlie Kloss and Behati Prinsloo. “I’m telling you, they’re good on the butt and they fit like a glove,” Jablonski said of the white pair she’d been poured into. Though some in the crowd bragged about owning pairs of the pricey label in their teens, brothers Harry and Peter FOR MORE PHOTOS, SEE Brant were not among them, WWD.com/eye. though price, they boasted, was naturally not an object for them. “I was into a nice seersucker pant at age six,” Harry said. He’s changed his mind now that Smalls has gotten into the denim game. “Anything Joan touches turns to gold, so yeah,” he continued. “She definitely knows sexy.” — ALLY BETKER
WWD FRIDAY, MARCH 20, 2015 11 WWD.COM
FASHION SCOOPS WHITE KNIGHT: The Hugo Boss plant in
PHOTO BY FRAZER HARRISON/GETTY IMAGES
H&M — entering its sixth year as a Coachella sponsor — will sell pieces from Brooklyn, Ohio, is getting a new lease its H&M Loves Coachella Collection, on life. U.S. Senator Sherrod Brown will some of which will only be available hold a press conference this morning at the festival in its pop-up shop. The to reveal that Keystone Tailored collection went on sale at about 350 stores Manufacturing LLC, a new company created by former HMX Group chief Doug in North America on Thursday and is priced from $4.95 to $49.95. Williams, has reached a deal to purchase The rest of the retailer’s tent — all assets of the plant and extend dubbed “Transformation”— contains employment offers to its 169 employees. heavy technology, including a Brown arranged the first meeting 360-degree selfie station and a scanner between Keystone with Hugo Boss. that produces photos claiming to Under the terms of the deal, W capture a person’s aura. Festivalgoers Diamond Group — the company also can also use their bodies to create operated by Williams that manufactures Hart Schaffner Marx suits — will partner music via an installation from digital artist Aaron Sherwood and participate with Keystone on a long-term supply agreement to produce HSM men’s suits, in a virtual reality experience using sport coats and trousers. It will join technology from Nanotronics and W Diamond’s Des Plaines, Ill., facility, Oculus Rift, the Irvine, Calif.-based which employs 450 full-time employees. firm bought by Facebook last year for “Our business is so good, we ran out $2 billion. Coachella runs April 10 to 12 of capacity in [Des Plaines],” Williams and 17 to 19. — KARI HAMANAKA said. “So we will move our overcapacity to Brooklyn.” Keystone JUICY’S NEW ANGEL: manufactures 70,000 Elizabeth Arden has units a year, Williams signed model Behati said, while Des Plaines Prinsloo as the face is churning out 260,000 of a new fragrance units a year. Williams masterbrand coming said W Diamond from Juicy Couture has been trying to in July. Elizabeth add employees to its Arden, which holds Chicago-area plant for the brand’s fragrance some time, but many license, declined to potential employees give the name or any don’t make the cut. “So further information getting 170 new sewers on the upcoming who are excellent is a project. “The new real coup,” he said. Juicy Couture Both the Des fragrance makes a Plaines and Brooklyn statement, and in workers will be Behati we found represented by the perfect girl to Workers United. capture the spirit Behati Prinsloo The plant, which of the brand,” said was saved from closure Robin Mason, senior in 2010, was scheduled to be shuttered vice president of global marketing at in April. Elizabeth Arden. “Behati is a dynamic — JEAN E. PALMIERI woman with global appeal.” No word on whether the model — who has also been a Victoria’s Secret UNDER THE TENT: Retail and technology Angel — consulted her husband, will converge under the H&M tent at the Maroon 5 frontman Adam Levine, about Coachella Valley Music and Arts Festival next month. The retailer released new the project. Levine launched his first details on its festival presence and fragrances — also a masterbrand revealed exclusive renderings to WWD with options for men and women — in of its on-site build-out. spring 2013. — JULIE NAUGHTON
MEMO PAD CALLING ALL INTERNS…: Former Condé Nast interns have until June 16 to file legal forms if they want to collect their settlement in the class-action lawsuit against their ex-employer. The $5.9 million settlement was reached last April, after 7,500 interns claimed that Condé Nast failed to pay them at least minimum wage and overtime when working for the publisher’s titles, which include Vogue, Details, Glamour and GQ. The well-publicized lawsuit caused Condé Nast to suspend its intern program as a result — sending editors into a panic over how they were going to get many of the more menial jobs done at their magazines. Those who nabbed one of the coveted internship spots from between June 13, 2007, and Dec. 29, 2014, received electronic forms via e-mail on Wednesday from Condé Nast with a detailed breakdown of the settlement, should they consent to collect the sum. Each intern could collect between $700 and $1,900, depending on the type of internship they had. The salary for a summer internship in the fashion closet of a magazine garners between $1,400 and $1,900 — the higher sum if no stipend was received.
Non-closet summer interns will pull $1,000 if they got a stipend, and $1,400 without a stipend. An intern working during the school year would earn $700 or $1,250 without a stipend. All of this is before taxes. As part of the settlement, the plaintiffs’ attorneys, from the New York-based firm Outten & Golden LLP, would receive about $650,000 and costs of about $10,000, service payments of $10,000 each for the two interns who initially brought the lawsuit and the administrator’s fees of about $98,500 — for a total of $768,500. But the former interns shouldn’t rush out and charge a pair of Louboutins or Manolos before they get their hands on the money: For those looking to collect quickly, there may be a hiccup, as the settlement sums “may be reduced on a pro-rata basis depending on the number of class and collective members who return claim forms,” according to the papers sent by Condé Nast. In nonlawyer speak, it means the more people who send in the forms, the smaller the payment might be. Then there might be the privileged few for whom money is no object: They could fill out a form to opt out of the settlement altogether. Why would they? Because it would allow them to sue Condé Nast for labor violations all over again. Choices, choices.
— ALEXANDRA STEIGRAD
who worked closely with its Special ODE TO THE ROAD: The multitasking Vehicle Operations design team. “I Sir Paul Smith has yet another creative thought it would be lovely to do a special project in the works, and it’s set to one-off as a way of saying ‘Byeeeee!’” be unveiled today at the designer’s said Smith. shop on Albemarle Street in London’s Mayfair. Smith, a longtime Land — SAMANTHA CONTI Rover Defender owner, has created a one-off edition of the car, jazzing BARNEYS GETS KANYE: Barneys New up the utilitarian vehicle with a rich York has bought into Kanye West’s latest patchwork of 27 colors mixed specially fashion collection — literally. for the vehicle — and with some The retailer has confirmed that signature Smith-ian quirks. it will carry Kanye West x Adidas Smith, who regularly uses his Originals Yeezy Season 1, the rapper’s Defender to navigate the rugged terrain collaboration with Adidas that debuted of Sardinia — where he has a holiday to strong reviews during New York home — has colored each panel of the Fashion Week. “The product is right car’s exterior with a different paint for the moment,” said Tom Kalenderian, — including blue, burgundy executive vice president and and gray — and done the general merchandise manager FOR MORE seats in black leather with of men’s for Barneys. He said SCOOPS, SEE blue stitching, and Maharam the line will be “launched as home textile fabric of his WWD.com. a collection,” and will include own design. The central footwear and bags in addition glove compartment has a to apparel. It will be housed on set of keys printed on the the eighth floor of the Madison base, and there are pops of fluorescent Avenue flagship and also be carried in color throughout, a reference to the all branches and on the Web site. Defender’s role as an emergency Since the order was just written, vehicle. A hand-painted bumblebee on Barneys has yet to work out whether the roof of the car is Smith’s homage to West will be involved in marketing the the countryside, while door handles, line when it hits stores later this year. wing mirrors and wheels all have a “We’re trying to flesh the details out satin finish. now,” Kalenderian said. “It’s delightful to be able to Liad Krispin, senior director of Adidas participate in things that are made of trend and influencer marketing, said, metal instead of cloth,” said Smith. The “Kanye West is involved in every model that Smith customized is the facet of the collection from its initial last of its kind, as Land Rover plans concept through to design to the way to bring out a new iteration of the car it is marketed. At this stage, it is too next year. Smith will have the car for early to share how the collection will the next year, and his design will not go be fully presented at retail, but our into production. discussions with him are ongoing and well under way.” He declined to Gerry McGovern, design director and provide details on what other retailers chief creative officer of Land Rover, will carry the collection. said it was Smith who approached the company about creating the design, and — J.E.P.
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