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LAUDER SALES UP 7%/2 PAUL POIRET UNVEILED/11

Women's Wear Daily · The Retailers' Daily Newspaper · May 4, 2007 · $2.00

Fresh's new Mangosteen collection, page 5.

WWDFRIDAY

Beauty

Flower Child

Marc Jacobs says he's "on top of the world" these days, and the sunny positioning of his new fragrance, Daisy Marc Jacobs, is in tune with his upbeat outlook. Daisy, due out in August, will be sold in about 1,800 U.S. department and specialty store doors and could do $55 million at retail globally in its first year. For more, see page 4.

Beauty's on the Inside: Sephora to Test Vitamins, Health Drinks

PHOTO BY JOHN AQUINO; STYLED BY MEGAN MCINTYRE

By Jennifer Weil and Ellen Groves

PARIS -- Sephora wants to make people beautiful -- from inside out -- perhaps signaling a new era in beauty retailing. The perfumery chain, owned by LVMH Moët Hennessy Louis

Vuitton, will unveil in France in September a new, in-store beauty concept emphasizing nutritional supplements and drinks. If it works as well as the company hopes, the concept will be rolled out to Sephora doors in

other countries. "Today, we think nutritional complements are indispensable to beauty," Natacha Dzikowski, global brand image director of Sephora, told WWD. Until now,

See Sephora, Page 10

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WWD, FRIDAY, MAY 4, 2007

Lauder Sales Climb 7%

By Molly Prior

NEW YORK -- The Estée Lauder Cos. Inc. delivered a 7 percent sales gain in its third quarter, as several international markets helped offset weakness in the U.S. Bolstered by travel retail and Europe, net earnings from continuing operations for the quarter ended March 31 gained 48.4 percent to $93.8 million, or 45 cents a diluted share, from $63.2 million, or 29 cents, in the year-earlier period, which had included a charge of $51.6 million related to the firm's cost-saving initiative. Net sales for the quarter jumped 7.1 percent to $1.69 billion from $1.58 billion in the prior-year period. "As we have stressed, we are truly a global company," the firm's president and chief executive officer William P Lauder told analysts Thursday. . "More than half of our sales were generated outside of the U.S. during the quarter." Department store consolidation continued to challenge U.S. sales during the quarter, particularly in the wake of changing nameplates. "What we're seeing is that when a retail store brand name has changed on the door, the local markets where there have been changes seem to be materially impacted in a different way in sales trend versus doors that have consistently had the same name on the door," said Lauder. "We see a seven-point spread in that difference across multiple different retail platforms." The company said business outside department stores, or retailers not tracked by The NPD Group, was up 11 percent. Travel retail proved to be a bright spot in the quarter, increasing by solid double-digits aided by healthy passenger traffic and construction of airport terminals.

WWDFRIDAY

Beauty

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GENERAL

Sephora, the LVMH-owned perfumery chain, will unveil an in-store concept emphasizing nutritional supplements and drinks in September. The Estée Lauder Cos. Inc. delivered a 7 percent sales gain in the third quarter, as international markets helped offset weakness in the U.S. Marc Jacobs is reaching for a new, younger fragrance customer who is as fresh as a daisy, as in his new scent called Daisy Marc Jacobs. Fresh, one of the upstart indie brands of the Nineties, is celebrating its 16th year by repackaging its products to unify the brand's image. CVS will roll out a major beauty marketing program to include in-store merchandising, direct mail and newspaper advertising. Retailers are ripping up skin care departments, making room on already crowded shelves for items designed to give customers a hint of color. The Costume Institute's "Poiret: King of Fashion" exhibit highlights the importance of Denise Poiret at Paul Poiret's creative peak. Five months and $5 million later, Escada's renovated Beverly Hills store is aimed at a younger customer but will stay true to its classic aesthetic.

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WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2007 FAIRCHILD FASHION GROUP ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. . VOLUME 193, NO. 96. WWD (ISSN 0149­5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January and November, two additional issues in March, May, June, August and December, and three additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: .O. SEND ADDRESS CHANGES TO WOMEN'S WEAR DAILY, P Box 15008, North Hollywood, CA .O. 91615­5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit .O. www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN'S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P Box 15008, North Hollywood, CA .O. 91615-5008 or call 800-289-0273. WOMEN'S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN'S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

As we have stressed, we are truly a global company. More than half of our sales were generated outside of the U.S. during the quarter.

"

"

-- William P Lauder, The Estée Lauder Cos. .

Skin care sales gained 9.5 percent, to $668.9 million, and makeup sales rose 6.9 percent, to $678.4 million, led by global double-digit growth of makeup artist brands Bobbi Brown and MAC Cosmetics. Lauder noted that during the quarter Bobbi Brown made its TV debut on QVC. "The products sold out in 45 minutes, making it the largest [single-hour] cosmetics launch in the network's 20-year history," he added. Fragrance sales declined 2.5 percent, to $240.1 million, due to slower sales of certain existing products in North America, namely Tommy Hilfiger. In the year-earlier period, the launch of Sean John and the Estée Lauder brand's Amber Nude fueled fragrance sales 11 percent. By region, sales in the Americas dipped 1.5 percent, to $856.9 million, hampered by retailer consolidation. International sales continued to outpace the Americas during the quarter. Sales in Europe, the Middle East and Africa gained 19.3 percent, to $598.4 million, and Asia-Pacific sales rose 13.8 percent, to $235.2 million. Looking forward, the firm expects fiscal 2007 full-year sales to grow between 6 and 7 percent.

"Overall we believe there is a lot of untapped potential in the travel retail arena," said Lauder. "Just 30 percent of global travelers step foot in airport stores and only 10 percent of travelers make a purchase." Since 2005, the firm has launched nine brands in the channel and continues to expand geographically, he noted. In the third quarter, all the Estée Lauder Cos. beauty categories -- except for hair care -- were adversely affected by Federated Department Stores closures. Hair care -- which accounts for 5 percent of the firm's total sales with Aveda and Bumble & bumble accounting for 95 percent of its hair care business -- is showing consistent strength, Dan Brestle, the Estée Lauder Cos. chief operating officer, told analysts Thursday, adding it is the only major beauty category where the firm does not have a significant presence. Category sales climbed 20.9 percent, to $97.1 million, on a reported basis. Referring to Aveda's standing in the salon market, Brestle said, "Aveda is currently the number-three professional spa brand in the U.S., but we want to be number one."

Quote of the Week It's "The world has changed.now much harder to keep exclusives because

the designers want to make a lot of money.

''

-- Gene Pressman

In Brief

IFF Profits Rise in First Qtr.

INTERNATIONAL FLAVORS & FRAGRANCES said it experienced a strong first quarter as profits rose 16.8 percent, to $62.7 million from $53.7 million in the same period a year ago. Results were robust, despite a 54.7 percent jump in interest expense, to $8.3 million. Earnings per share gained 19 percent, to 69 cents a share from 58 cents a share in the yearago period. The higher profits came on sales that rose 10.7 percent, to $566.1 million from $511.4 million a year ago. Currency-adjusted sales were up by about 6 percent, IFF said in a statement, noting that sales for the quarter reflected "the generally weaker U.S. dollar, mainly against the euro and [British] pound." "IFF is off to a solid start in 2007 with double-digit increases in sales and net income," Robert M. Amen, chairman and chief executive officer of IFF, said in the statement. Fragrance sales increased 11 percent, as did flavor sales. The company noted that fragrance sales were driven by an 11 percent rise in fine fragrance sales and beauty care sales, thanks to product introductions. Additionally, fragrance ingredient sales rose 17 percent and functional fragrance sales were up 5 percent.

WAL-MART LABOR RULING: The United Food & Commercial Workers Union lost an appeal of a Labor Board decision refusing permission to organize a store in Cranbrook, British Columbia. The British Columbia Supreme Court upheld the board's rejection of the union's petition, ruling, "The board neither denied the applicant a fair hearing nor considered matters not properly before it." Wal-Mart has been fighting unionization efforts across Canada. It lost a bid last month to stop a union at a store in Saskatchewan. Two Wal-Marts in Quebec have gained union certification, and one of them is being challenged in court by the company. Wal-Mart closed the first Canadian store to be unionized, also in Quebec, in April 2005. VF CHANGES: Giorgio Presca has taken over as president of

-- Matthew W. Evans

VF Corp.'s international jeanswear business, replacing Aidan O'Meara, who was appointed to the new position of president of VF Asia-Pacific. Presca is a 17-year apparel industry veteran, having most recently served as general manager for Diesel. He will report to Karl Heinz Salzburger, president of VF Europe, Middle East, Africa and Asia, and be responsible for growing the company's denim brands in those regions.

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WWD, FRIDAY, MAY 4, 2007

Beauty Class

WWD.COM

Marc Jacobs Aims for Youth With Daisy

By Julie Naughton

arc Jacobs is showing off his sunny new attitude with Daisy Marc Jacobs, his latest women's scent. "I feel very good," said the designer during an exclusive phone interview Wednesday afternoon. He has just returned to the East Coast after a stint in rehab. "I just got back to New York and I'm trying to get back into the gym and doing yoga. Lately, most days I've spent taking care of myself, but there's a lot to do [in the office], and I'm ready to get it done. I'm on top of the world." His new positive mood wasn't even dented by a minor run-in with a glass door in his office. Minutes before the interview, Jacobs -- engrossed in other thoughts -- walked straight into a sliding door and injured his nose. "Actually, when I'm not running into doors, I have a pretty good sense of smell," he quipped. Daisy, due this August, takes style cues from Marc by Marc Jacobs, the designer's diffusion line -- but Jacobs is adamant that it isn't a secondary fragrance. "I don't want to get too artsy about inspiration, but there is a sense memory, a reference, in fragrances," said Jacobs. "Daisies don't smell, but I wanted to evoke the feeling that you get when you see them -- happy and youthful. My gardenia and jasmine scents [Marc Jacobs for women and Blush Marc Jacobs, respectively] are more singular and definitely more `designer' scents. I don't want to say they're older, but they're more sophisticated." Daisy, a sparkling floral created with Firmenich's Alberto Morillas, has top notes of wild strawberry, violet leaves and ruby red grapefruit; a heart of gardenia, violet petals and jasmine petals, and a drydown of musk, vanilla infusion and white woods. The collection includes eaux de toilette in two sizes, a 1.7-oz. bottle for $55 and 3.4-oz. version for $70; a 5-oz. body lotion for $32; a 5-oz. shower gel for $30, and a 5-oz. Velvet Body Butter for $35. Jacobs' first scent, an eponymous floral juice with gardenia, was launched in September 2001. Its target market is women thirtysomething and up, noted Michael D'Arminio, vice president of global marketing for the Marc Jacobs and Vera Wang fragrance brands at Coty Prestige. D'Arminio believes that 18- to 24-yearolds will be the "sweet spot" for Daisy. However, Jacobs doesn't believe in putting too narrow an age target on his scents. "I think customers are a variety of ages, and they know what's right for them," he said. "It's never about age, but about a spirit and sensitivity. Any creative choice isn't done by math or focus groups. You do some-

M

Left: The Daisy ad. Above: Marc Jacobs earlier this year.

store activities have been a particular strength. "In North America, our business in specialty stores and high-end department stores has grown 21 percent in the past year alone. In Europe, we have had three years of double-digit increases, with the average being 53 percent -- the U.K. being the key market for us in Europe. Now, it is time to go big with Daisy. Our goal is to more than double our global volume." For his part, Jacobs is 100 percent behind these efforts. "It's really been rewarding to make this foray into fragrance," he said. "I keep running into strangers who come up to me and say my fragrances are their favorite, and it's fun to smell them on people on the street. We've had a nice relationship with Coty. It all feels very in sync [with the Marc Jacobs collections.]" Daisy's distribution will be wider than that of its sister scents. While Jacobs' higher-end fragrances are currently available in about 900 doors in the U.S., Daisy

Lauder Drives Into Mass Market With Mustang Men's Scent

ARAMIS AND DESIGNER FRAGRANCES IS REVVING UP FOR A LAUNCH IT pipe tobacco and cedar wood, and a drydown of amber, fir balsam and patchouli. Cologne sprays in three sizes -- 1 oz. for $20, 1.7 oz. for $25 and 3.4 oz. for hopes will exhibit serious horsepower. The division of the Estée Lauder Cos. has teamed with the Ford Motor Co. to $32 -- will be sold, as will a 3.4-oz. aftershave. More ancillaries are planned for launch Mustang, a men's fragrance named for the car company's iconic model. The spring 2008. While none of the executives would comment on sales fragrance will also mark a return to the mass market by the Estée Lauder projections or advertising spending, industry sources Cos., which has been absent from that market segment since selling Jane estimated that the scent would do about $25 million at Cosmetics in February 2004. retail in its first year on counter and that about $6 mil"Mustang will launch a new distribution model for us," said lion would be spent on advertising and promotion in the Robin Mason, vice president of global marketing for Aramis and same time frame. Designer Fragrances. The Mustang fragrance will be launched A dedicated Web site, mustangformen.com, will be first in Sears, J.C. Penney and Kohl's Department Stores operational prior to Father's Day. "We want to create a in July. In August, the fragrance will be rolled out to mass community," said Murphy, "and capitalize on the bold and merchandisers and chain drugstores, including Wal-Mart, legendary positioning of this brand." With its sampling CVS and Target. And Mustang, believes Mason, is the right campaign, the company is aiming for 10 million scented brand to make that leap. "Fragrance is a small part of impressions, he added. mass market selling right now, but with the right fragrance A national advertising campaign will begin running in it will grow into a nice slice of the pie," she said. "There September lifestyle and automotive magazines. are a number of synergies between Aramis and Mustang. In addition to traditional fragrance promotion vehiWe are both classic American brands which appeal to `retcles, the scent will also be promoted at NASCAR events rosexuals' -- a guy's guy, the opposite of a metrosexual. and in FordWorld Magazine, which is distributed to the This isn't a car fragrance. It's a lifestyle brand." company's 250,000 employees, said John Nens, director of Bill Murphy, senior vice president and general managThe Mustang fragrance. global brand licensing for the Ford Motor Company. "This fraer of the Fashion Group department at the Estée Lauder grance is an extension of our brand, and one that we think has Cos., noted that upward of 22,000 doors in the U.S. would stock the great potential," said Nens, adding that the Mustang name was also licensed for scent when it is in its full distribution. The scent, developed by Trudi Loren, vice president of corporate fragrance devel- shirts, hats, toys, video games and jewelry. "Even if you can't drive the car, you can opment worldwide for the Estée Lauder Cos. in cooperation with Firmenich, is charac- still live the brand." terized as a "rugged oriental." It has top notes of lavender, ginger and lemon; a heart of -- J.N.

PHOTO BY JOHN AQUINO

PHOTO BY STEPHANE FEUGERE

thing that has integrity and you make creative choices, and you get it out there and see what happens." Jacobs' fragrance business also includes Marc Jacobs Men, launched in September 2002; Blush, a women's scent with jasmine, launched in September 2003, and Splash, a multiscent lineup introduced in spring 2006. "For the past three years, we have been keenly focused on our global distribution strategy rather than a lot of launch activity," said Catherine Walsh, senior vice president, American Fragrances for Coty Prestige, adding that in-

will be sold in 1,500 to 1,800 U.S. department and specialty store doors. Bloomingdale's will have a one-month exclusive on the scent, which will then roll out to the remainder of the planned distribution. Daisy will make its debut in the U.S., the U.K. and France simultaneously and will be global within six months, said D'Arminio. The fragrance is topped by three flexible plastic daisies affixed to a gold cap. "I love how tactile the cap is," said Jacobs. "It's really a juxtaposition with the bottle, which is sophisticated. It's bold and playful at the same time, as is the fragrance." Outer packaging is a daisy-chain-edged black box with gold printing. "The project is all about sunshine and happiness, and we wanted a classic carton," said D'Arminio. Print advertising, shot by Juergen Teller in Hawaii and featuring model Irena K., will break in September fashion, beauty, teen and lifestyle magazines. While D'Arminio declined to discuss sales projections, industry sources estimated that the scent would do about $55 million at retail globally in its first year on counter, about half of that figure expected to be generated by U.S. sales. Industry sources estimated the brand's advertising and promotional budget at about $15 million in the U.S. Sampling will include deluxe miniatures, vials on cards and scented pieces, said D'Arminio. Jacobs planned to leave Thursday for Provincetown, Mass., where he and business partner Robert Duffy are opening a seasonal Marc by Marc Jacobs store. "It's great that Robert and I continue to trust our whims and instincts and pursue them," said Jacobs. "We really believe in the community. Robert has a house up there, and while I've only been once, I loved it. I appreciate the artistic community and, of course, I have an affinity to the gay community. We're excited to open there." Next, Jacobs will concentrate on his upcoming resort line, and has just launched children's clothing and a tabletop collection with Waterford. "It's a lot of fun to set my table with it all," he said. Jacobs is also rocking a new look, headlined by a close-cropped haircut that he introduced during a birthday shopping outing with Naomi Campbell on April 9. (He just turned 44.) "I supported my fellow designers that day," he said wryly, adding that Dior jackets and Lanvin shoes were among his purchases. Are more fragrances on the horizon for Jacobs? "I'm famous for saying we'll see," he said, "but we'll see what happens with this one. I think it will do well, and I'd like to do others."

WWD, FRIDAY, MAY 4, 2007

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WWD.COM

Turning 16, Fresh Lives Up to Its Name

the LVMH tower on East 57th Street in New York by end of the summer. "Brand continuity is important, and we plan to keep it a niche brand. But we'll FRESH, ONE OF THE UPSTART INDIE BRANDS OF THE NINETIES, IS continue developing both the retail and wholesale businesses," said Plisson, who noted that over 65 percent of business is generated by wholesale. "We grew 20 percelebrating its 16th year with all the trappings of adulthood. As part of its "Sweet 16," Fresh is giving itself the gift of a makeover by repack- cent last year, and we plan on a trend growth of about 20 percent every year." Fresh is currently sold in some 300 U.S. doors including Neiman Marcus, aging all of its products in an effort to unify the brand's image as it prepares for global expansion. Dubbed "The Fresh Unification Process," this effort comes on Bergdorf Goodman, Saks Fifth Avenue and Sephora, in addition to apothecaries. the heels of the installation of Jean-Marc Plisson as the newly named chief ex- The company also has 13 freestanding Fresh stores in cities such as San Francisco, ecutive officer in March, a closer working relationship with parent LVMH Moët Boston, Chicago, Las Vegas, Los Angeles, London and Seoul, with possible expansion in Washington. Hennessy Louis Vuitton and a battery of new product launches. Executives plan to open a new store at New York's Columbus Circle by July and All of these moves are calculated to propel a 30 percent increase in sales by the are in talks with other high-end retailers such as Bloomingdale's. The company is end of this year to $80 million, according to estimates by industry sources. also looking to further expand its overseas business in mar"We're growing the brand in front of everyone's eyes; we need kets like South Korea, Hong Kong and Taiwan, in addition to to offer the consumer uniformity with a strong, distinct look and Select tapping into new markets. style," said Lev Glazman, president and director of research and Mangosteen To coincide with its makeover, Fresh will roll out a host development at Fresh. products. of new products later this summer. In August, Fresh expects As the company grew over the years, executives realized that to introduce a new bath and body collection based on manFresh needed a more cohesive brand image across all bath, body gosteen, a Southeast Asian "superfruit" known for its high and fragrance categories. Research showed that consumers had level of antioxidants. The Mangosteen body care collection trouble recognizing the individual product launches as part of will include a bath and shower gel, body lotion, soap and eau an overall brand. After starting with the Sugar body care and de parfum. Items range from $14 for the Mangosteen Oval fragrance collection earlier this year, the repackaging effort will Soap to $65 for a 3.4-oz. eau de parfum. roll out in stages until its completion this fall. Currently about 50 Also in August, Fresh will launch Satin Liner Palette for percent of the items in the bath and fragrance category have been the eyes and A Kiss Is Just A Kiss Beauty Palette for the eyes, repackaged, said Glazman. Although skin care products will not cheeks and lips. Satin Liner Palette features three cream be included in the current repackaging efforts, there are plans in liners in Sienna, Olive and Coal shades, while the multipurdevelopment for its restage. pose Kiss Beauty Palette offers a silver shimmer cream for Company executives have already seen a 30 percent increase in the face, a pink cream blush for the cheeks and a highly pigretail sales with the relaunch of the Sugar collection. mented burgundy lip gloss. Both products will retail for $45. The extensive plan calls for design elements like the shape of "We take a `less-is-more' approach to makeup," said Alina the signature fragrance bottle and Fresh logo to be incorporated Roytberg, president and creative director of Fresh. "Instead of uniformly in all fragrance repackaging. offering single shadows, we like introducing trio sets." "Fresh is a brand built on collections, but it's not The company is also introducing a high-shine about individual collections," said Glazman, who attrinon-sticky Sugar Lip Gloss, which offers the same butes the success of certain categories to what he calls benefits as the Sugar Lip Treatment SPF 15 but "anchor" bestsellers. "Every category has its own star, acts as a lip plumping gloss. The new gloss contains and we've created hero products within each category," skin-smoothing humectants and moisturizers like said Glazman. Some of those star products include the sugar, shea butter, jojoba oil, grape seed oil, black Soy Face Cleanser, Brown Sugar Body Polish, Supernova currant seed oil and vitamin E. Retailing for $25, Mascara, Sugar Face Polish and Sugar Lip Treatment SPF the Sugar Lip Gloss will be available in 10 shades 15, which is the company's best-selling treatment product, and will launch exclusively at Sephora and fresh. according to Glazman. com in August. The company kicked off its "Sweet 16" celebration "We're taking the success of our sugar lip treatwith a party April 24 at its 1,000-square-foot flagship in ment and bringing it into color," said Roytberg. SoHo, where a company time line followed the brand's "People have lots of interest in anything with the development from the early Nineties. sugar ingredient." With about 250 stockkeeping units in the collection Finally, the company will launch the Anise across all categories, skin and body care accounts for a Wrinkle Eraser, priced at $55. It is an age-defying little more than half the company's business, while fraproduct designed to act as a topical filler made from grance makes up 23 percent and makeup 15 percent. anise extract, hibiscus peptides, peony, mulberry Following the appointment of Plisson as ceo, the Jean-Marc Plisson, Alina Roytberg and Lev Glazman. roots and polymers. company plans to move its headquarters from Boston to

By Michelle Edgar

Lauder and Procter & Gamble Shine at CEW Awards

T

he Estée Lauder Cos. edged out Procter & Gamble Co. Wednesday as the Cosmetics Executive Women organization held its 13th annual CEW Beauty Awards ceremony at the Waldorf-Astoria. Lauder took home five statuettes and Procter & Gamble netted four. The impact of the awards is expected to be felt well beyond the Waldorf. The organization has teamed up with CVS, Sephora, Federated Department Stores and Ulta to translate kudos into sales, via the Internet. A complete list of the winners on the organization's Web site, cew.org, offers comprehensive information about each product, as well as a clickable link to one of the retailers listed above. The consumer then has the option of immediately purchasing the products that appeal to him or her. The site also offers extensive information about the finalists in each category and provides a buy-it-now link for them. The effort began last year but has grown considerably this year, said Carlotta Jacobson, president of CEW. "The linkage back and forth between the retailer and our site gives credibility to both of us," said Jacobson during an earlier interview. "We have a new, younger consumer who is willing to shop online without trying the product, and the seal offers assurance that she's picking a winner." During the Waldorf presentation, 36 Lalique statuettes were handed out to winners of different product categories, divided by price range. There also was an award for best indie startup that went to Skyn Iceland. For the women's fragrance, priced $35 and over, Prada Eau de Parfum Tendre by Prada won, while there was a tie for the under-$35 segment between Grassroots Happily Ever After of Estée Lauder's BeautyBank and Sonia Kashuk's Solid Perfume Palette. The men's scent $30 and over award went to Unforgivable by Sean John. In facial skin care, MD Skincare by Dr. Dennis Gross All-Over Blemish Solution won for acne treatment, priced $10 and over, and in the under-$10 segment it was Neutrogena Rapid Clear Pads. For anti-aging, $30 and over, it was Patricia Wexler M.D. Dermatology Wexler Intensive Night Reversal & Repair Cream, while the under $30 award went to Olay Definity Deep Penetrating Foaming Moisturizer. In the cleanser and scrub category, $12 and over, Clinique Liquid Facial Soap won. For under $12, Unilever's Dove Energy Glow Skin Brightening Facial Cleanser took the honors. For eye treatments, $20 and over, it was Avon Anew Clinical Eye Lift, and for products under $20, Tweezerman After Tweeze Soothing Cream won. In the lip treatment category, FusionBeauty LipFusion XL won $14 and over, while Tarte fRxtion Sugar Exfoliator and Lip Balm Duo won under $14. Shiseido won two awards in facial skin care -- one for its White Lucent Brightening Moisturizing Cream in the $30 and over segment, and the other for its Benefiance Pure Retinol Face Mask in the peel and mask, $25 and over category. The award for moisturizer under $30 went to Kiehl's Ultra Facial Cream, while the peel & mask under $25 went to Lumene Time Freeze Instant Lift Mask. The men's skin care $15 and over award was tied between Kiehl's Eye Alert and The Art of Shaving Body Scrub with Tangerine and Eucalyptus Essential Oils. For the makeup segment, Chanel and Procter & Gamble each took home two awards. Chanel won the eye product category, $15 and over, for Chanel Inimitable Mascara and it also snared the lip product award, $15 and over, for Rouge Allure Luminous Satin Lip Colour. Procter & Gamble received the eye product under $15 trophy for CoverGirl LashExact Mascara and also won for face product, $18 and over, with SK-II AirTouch Foundation. Other makeup awards were given to MAC Cosmetics for Studio Touch-Up Stick for face product under $18 and Bourjois Paris won lip product under $15 for the Effet 3D Mobile Cell Phone Charm. In the hair care and coloring product category, Frédéric Fekkai won the $15 and over category for the second year in a row with the Ageless DamageDefense Capsules, while John Frieda received the award for Professional Hair Care Luminous Color Glaze, in the under-$15 segment. Origins took the award for bath and body product, $15 and over, with its Modern Friction for the Body; for the under-$15 segment, Dove won with its Energy Glow Shimmering Lotion. For scented bath & body, $15 and over, C.O. Bigelow won with Lemon Cream Body Wash, while in under $15 Olay Body Wash plus Ribbons won. Finally, there was a tie for the award for sun products, $15 and over, which went to Clarins Sun Wrinkle Control Eye Contour Care SPF 30 and La Roche-Posay Anthelios SX. In the under $15 sun category, Neutrogena won with Ultra Sheer Dry Touch Sunblock SPF 55. Avon won the nail care and color under $12 category with Instant Manicure.

PHOTO BY JOHN AQUINO

-- M.E. and J.N.

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WWD, FRIDAY, MAY 4, 2007

The Beauty Report

CVS to Tout Strides in Beauty

two times faster than the industry average, and its cosmetics sales grew three times faster than the industry average, said Mahoney. That kind of growth is a particularly WOONSOCKET, R.I. -- CVS Pharmacy is determined to shout its commitment to its impressive feat, considering that cosmetics is a mature business in the mass chanbeauty business with an ambitious marketing program that will mushroom in June nel, said Sherry Saffert, senior category manager for cosmetics and accessories. CVS's smaller store format requires tight editing of the beauty assortment. from pervasive in-store merchandising to culminate in direct-mail and newspaper "Once we decide what products to get behind, we launch advertising. them in a big way," said Mahoney, adding that new prodThe national drugstore chain will usher in the camucts were given prominent placement in the store, highpaign, called Reinventing Beauty, by dressing its 6,200 stores in teal signs hanging from the ceiling and protrudlighted in circulars and supported through Extra Care, CVS's loyal-customer program with 65 million cardholding from shelves. ers. Nevertheless, the chain introduced some 3,000 new The Reinventing Beauty campaign follows a fouryear effort to improve the beauty shopping experience beauty products in the past year. in CVS stores. Since 2003, CVS has cleared space near During a walk-through of a mock CVS store planogram at the company's headquarters, beauty executives the pharmacy for Healthy Skincare Centers stocked with said the drugstore chain was using The Big Semi-Annual European brands; struck an exclusive partnership with the Finnish beauty line, Lumene; added proprietary Beauty Sale, a weeklong effort that began in its stores on April 29, as a soft introduction to Reinventing Beauty. The lines, including Cristophe Beverly Hills hair care and sale also promotes CVS's 100 percent money-back guaranSkin Effects by Dr. Jeffrey Dover, and aligned itself with Boots of the U.K. tee on all beauty products. In-store signs read, "Be 100% The drugstore also continues to grow its beauty advishappy. The beauty guarantee. 100% money back." CVS promoted the sale, referred to as "beauty days," ers program and plans to dispatch 1,000 of them to over by devoting nine pages of this week's 24-page circular to 600 stores by the end of the year. With much of the heavy the category. The chain distributes 58 million circulars lifting out of the way, Cheryl Mahoney, vice president of each week. merchandising for beauty care, said the time was right to In a simulated store setup, a mock planogram illustout CVS's strides in beauty. trates CVS's beauty game plan. It includes Lierac Paris, "We focus on knowing who our customers are and what the European skin care brand, stocked in select Healthy they want," said Mahoney. "The customer tells us she Skincare Centers along the West Coast; a lighted Healthy loves to shop for beauty at CVS." Skincare Center display, of which there are over 300; a Mahoney, who joined the chain in 1980 as an assistant 12-foot Boots display, which is rolling out to 500 doors and manager in cosmetics, said the retailer's circular adverincludes the Mediterranean, No7 and Botanics brands; tising, which began in the mid-Eighties, was what "starta natural products assortment that includes BeFine, an ed to bring beauty to life at CVS." CVS's circulars, unlike exclusive, and Kiss My Face, and its Lumene offering, those of many of its competitors, were designed to tell a which recently added trial sizes. story about products and their benefits. The retailer has "The trial-size Lumene kit brings people into the regicontinued that evolution ever since, placing beauty near the entrance and rolling out its Life Format, a store laymen," said Deb Armstrong, divisional merchandising manager for beauty care. She added, "Thirty percent of out with lower shelves to facilitate shopping for women, people who buy Lumene are coming from department who make up 80 percent of its customers. "Through our stores," noting that Lumene's skin care products sell consumer research, we found that our average consumer more briskly than cosmetics. is 5 feet 4 inches tall, so we made the shelves in the Life Armstrong commented that the retailer's attitude toward Format 60 inches high," explained Mahoney. In-store visuals for CVS' Reinventing Beauty campaign. adding proprietary lines, like Lumene and Skin Effects, It's that kind of insight, along with frequent market visits throughout the U.S. and aboard, that has helped to form CVS's approach to was not a "substitution approach." Rather, CVS uses these brands to plug in holes beauty, noted Mahoney. She added that the CVS management team, lead by chair- in the assortment. Referring to the launch of Skin Effects, she said, "When we mapped out the facial man, president and chief executive officer Tom Ryan, saw the value in beauty becare category, we saw there was white space that we could fill with a derm line." cause of the growth and profitability of the category. The Reinventing Beauty effort will be an ongoing one, said the executives. A CVS spokesman noted that pharmacy accounts for 70 percent of CVS's revAs for what's next from CVS, Mahoney said, "Our concept will continue to evolve. enue, but said beauty was the fastest-growing piece of the business in the front of the store. CVS, which has a smaller store format than many of its competitors, has We clearly recognized the link between beauty and health, and our customers will begun to see the return on its beauty focus. Last year, CVS's beauty business grew lead us in where we go next."

By Molly Prior

ADDING UP BEAUTY

Salons Get a Slew of New for Summer

ditioner, a curl-defining mist and a smoothing cream, and is packaged in light orange containers, a few shades away from Oleoany industries see summer as a time to go on holiday. Not the Relax's bright orange bottles. "We took technology from Oleo-Relax and implemented that beauty industry. The seasonal change serves as a prime time for new items, especially from hair care companies. The profes- as the foundation for Oleo-Curl," said Shane Wolf, vice president of marketing at Kérastase, adding that the two lines are meant sional market, in particular, is gearing up for a slew of new, to be used together depending on the desired style. To help including entries that bring innovation, address hair trends educate stylists on the ins and outs of the new line, Kérastase and aim to protect hair from the sun's harmful rays. has tapped hair stylist Tommy Buckett to appear in an eduIn July, salons will receive L 'Oréal Professionnel's upcational video, as well as to make press appearances and test dated Colorist Collection, a new version of the color-denew formulas. Buckett hails from Sally Hershberger, which positing shampoo and conditioner line first introduced just recently became a Kérastase salon. Oleo-Curl items will in the Nineties by Artec. L 'Oréal Professionnel -- which sell from $32 for the shampoo to $58 for the conditioner and purchased Artec in August 2002 -- reworked formulas so are launching to salons in June. they now blend and bond better with today's hair color Sometimes smaller ventures can make a big difference on choices. Colorist offers 12 shampoos and conditioners, inretail shelves, too. There's a new shampoo and conditioner cluding two new shades, Vanilla Bean, for darker blondes, by ThermaFuse, the professional industry's go-to hair care and Hazelnut, for chocolaty brunettes. Ingredients, such as brand for heat-styled hair. Each has new moisturizing technolapricot kernel oil and fruit extract, aim to deliver shine ogy that's also sulfate-free. The new items will sell for $18.50 and color, while keratin-bonding dyes address longevity. each. Colorist is meant to be used every other time one shamJoico is looking to keep hair healthy all summer long with poos, and has been packaged in color-coded containers to K-Pak Sun Therapy Treatment Masque, which can be used make selecting items easy. Colorist shampoo will sell for as a hair protectant while sunning at the beach. The formula $15, and conditioners, for $17. contains aloe vera, UV protectants and proprietary Joico While color is always a hot topic, styling products technology to keep hair conditioned and manageable. It can perfect a summer coif. Sebastian Professional, the is available in salons now and sells for $15.95. maker of Shaper and Shaper Plus Hair Spray, looks to Sebastian's "Hairspray" FHI Heat continues to bring innovation to stylraise its profile in a deal that makes them the official Shaper Hair Spray. ing tools, its latest effort being a wireless heated stylers for the summer movie remake of "Hairspray." razor, which reaches 250 degrees. The razor will sell The partnership with New Line Cinema called for specially designed, limited edition cans that will be available in for $150 and is recommended for hair extensions and etching. Replacement blades are available in packs of 10 for $20. salons in June for about $13 to $14 per 10.6-oz. container. And Tigi has added to its S-factor hair care line with Color To get the perfect summer wave, luxury hair care brand Kérastase is launching Oleo-Curl. The new, four-item line builds Savvy, a shampoo and conditioner with sulfate-free formulas to on the Oleo franchise and uses technology found in Oleo-Relax, protect color and offer a mild, gentle rinse. Color Savvy products a regimen that addresses frizz. Oleo-Curl includes shampoo, con- will retail for $24 each and are available in salons now.

By Andrea Nagel

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Top: ThermaFuse's new sulfate-free shampoo and conditioner. Above: Items from L'Oréal Professionnel's new Colorist Collection.

PHOTOS BY JOHN AQUINO

WWD, FRIDAY, MAY 4, 2007

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Olay Ramping Up Skin Care Offering

lay is expanding its Regenerist and Definity lines this summer, offering new products for the eyes and face. In July, Procter & Gamble's Definity will launch Olay Definity Eye Illuminator, an antiaging eye treatment designed to diminish under-eye darkness, while improving the overall tone and texture of skin. "Definity stands for illumination and the removal of dullness from the skin, and it's Definity's first eye product with both short- and long-term benefits," said Eric Admiraal, Olay's brand manager. "Most eye products target creases and fine lines, but this treats discolorations and evens out skin tones." Retailing for $25.99, the serum combines Olay's proprietary essential glucosamine complex with "smart particles" technology. Also being launched in July is Olay's Regenerist Micro-Sculpting Cream, $24.99, designed to restore volume and shape to skin surface cells in women 35 and older. According to Admiraal, Regenerist is the company's fastestgrowing line in sales. "This cream is intensely hydrating and has shaping and lifting benefits," said Admiraal, who added that the cream contained the highest concentra-

Benefits: Glow Lotions' Second Act

NEW YORK -- Skin care manufacturers now have to go beyond the glow. Two years ago, glow moisturizers, or lotions that impart subtle color, ushered in a whole new skin care category. Sales soared and Americans started looking bronzed and beautiful. Then, like many good ideas, there was a plethora of launches that sapped sales of the first to market, Jergens, and began to slow the entire category. Growth is expected to accelerate again this year. Now there's a new radiance to glow products, and retailers consider glow a separate category requiring its own merchandising planogram. Beauty manufacturers are looking for their own special place in the market where they can add something to their moisturizers that competitors don't have. Retailers are ripping up skin care departments, making room on already crowded shelves for items designed to give customers a hint of color. Retailers said glow is a category in its own right and has not eroded traditional body care sales. For Beiersdorf, the secret ingredient is to add firming capabilities, according to Nicolas Maurer, vice president of marketing for Nivea. "Our research found people thinking about using glow products also want to firm up," he said. The result is Nivea Sun-Kissed Firming Glow, which also has what Maurer describes as a pleasant mango scent. "We realize we aren't first to the market [with a glow product], so we had to add benefits. In addition to wanting firming, people complain about the scent of other products," he added. A 1.7 ounce retails for $6.99. L 'Oréal was early to the self-tanning universe with Sublime and has extended that franchise into a facial glow item called L 'Oréal Sublime Glow for Face. Buyers said consumers are drawn to this because in addition to moisturizing and adding glow, the product features an SPF of 15. Carol Hamilton, president of the L 'Oréal Paris division of L 'Oréal USA, confirmed that Sublime Glow is doing "exceptionally well" at retail. Even Jergens, which helped kick off the trend in the U.S. is tweaking its items. To help inspire sales of its new facial product, Jergens shrink-wrapped its facial item to its body product. Jergens has added SPF 20 to its formulas for its facial item. Jergens is the only glow item to show up in Information Resources Inc.'s top facial selling items and for the 52-week period ended Jan. 28. The item displayed almost a 4 percent growth rate over the same period for the year before. Unilever extended the Dove franchise into the glow segment with Energy Glow, which is actually a buildable color L'Oréal, Aveeno and Dove have product because daily use all entered the glow segment. deepens color much like a self tanner. Since it does gradually "tan," there are different formulas for various skin tones. Johnson & Johnson used Aveeno as its entry to glow, which also has gradual color enhancers and different shades for multiple skin tones. With the various shade offerings, these brands get extra facings, or space, on the shelf. With summer around the corner, retailers are giving glow items prime real estate. Target, for example, has an entire glow endcap with special gift packs of Jergens that help promote the facial product. On shelves, merchants have had to pare traditional moisturizers to make more room for glow products. "We love what glow has brought to the market, but the constant launches are making it a nightmare to merchandise," said one company vice president. Since glow products are linked closely to cosmetics chains, such retailers as Walgreens, CVS and Target are merchandising the skin care items either in beauty or close to the cosmetics aisles. At Target, glow product endcaps are the distinguishing display to separate cosmetics and health and beauty aids. Thanks to innovative marketers, glow products have not faded into history, but have added a new shine to beauty care sales.

O

Regenerist and Definity items.

PHOTO BY JOHN AQUINO

tion of amino-peptides of all Regenerist products. "It replumps cells that deliver better shape and contour and can be used in addition or as an alternative to daily products." The company's research from the American Society for Aesthetic Plastic Surgery showed that total cosmetic procedures decreased by 4 percent from 2004 to 2005, while hyaluronic acid filler injections increased by 35 percent. The Micro-Sculpting Cream acts as an alternative to the filler procedure as it restores both shape and volume. According to Information Resources Inc., Olay's overall skin care sales generated about $1.83 billion in sales in the mass market, excluding Wal-Mart, for the year ended March 25, 2007, a 4.65 percent increase over the prior-year period. This number includes sales of all Olay items, not just Regenerist and Definity. Olay will also add to its antiaging Total Effects line with Mature Skin Effects Therapy moisturizer, a product designed to deeply hydrate the skin, making it smoother and more radiant. Aimed at menopausal women, the cream is composed of an antiaging vitamin complex that targets signs of aging. Also set to be launched are Pore Refining Mousse Cleanser and Daily Foaming Mud Cleanser, which is designed to remove oil and makeup while cleansing the skin. Products will range from $6.99 for the cleanser and mud cleanser to $18.99 for the Mature Skin moisturizing cream.

Vavoom Hits the Stage With `Legally Blonde'

to shine, adding that the parteauty and Broadway have nership with "Legally Blonde come together to deliver the Musical" looks to tara renewed hair care brand's get a younger audience with youthful, style-oriented mesVavoom, as well as reconnect sage. it with its loyal users from the As exclusive beauty sponNineties. sor of "Legally Blonde the "This was the perfect opMusical," the Vavoom hair portunity for the brand," said care brand takes center stage Marquardt. "There is a spewithin a set-designed salon, cial bond between the stylist where many of the musical's and the customer, and `Legally key scenes unfold, including Blonde' exemplifies this relathe lead character's take on tionship. It is a good vehicle how to catch a man. for us." Audience members of In order for Vavoom's mesthe musical, which opened Elle's Carol Smith, actress Laura Bell Bundy, Matrix's sage to reach hairstylists, a Sunday night at the Palace Francesca Raminella and Deborah Marquardt. national hair color promotion Theatre, saw Vavoom prodand educational initiative ucts prominently displayed on shelves of The Hair Affair salon, June issue. And, Vavoom ads will run will make its debut in June, accomas well as in the dorm room of lead in trade magazines, including the panied by education at the Matrix Global Academy in Manhattan. For the character Elle Woods (played by June issue of Modern Salon. Matrix -- which is part of the musical's premiere, stylists from the Laura Bell Bundy). Vavoom's "star" 'Oréal Professional Products divi- Academy styled stars' hair. appearance is just part of a multiplat- L To build on the multiplatform ef'Oréal USA -- saw Vavoom's form marketing and advertising part- sion of L nership for the Matrix-owned brand, popularity hit a high in the Nineties, fort, Matrix has created a dedicated which also integrates hairstylist and due largely to its long-holding hair mini site for the Vavoom sponsorship, consumer education with in-salon and sprays. The brand went mostly un- Paulettessalon.com (named after supported prior to 2005, according to the Matrix salon-owner and stylist, online promotions. Elle magazine, the musical's media Deborah Marquardt, vice president, Paulette, in the musical), which will sponsor, served as Vavoom's business Matrix Integrated Communications, have information on the hair looks link to the partnership. Subsequently, when it was relaunched at salons featured in the musical, as well as a a six-page Vavoom advertorial featur- and professional beauty stores with stylist-client sweepstakes and stylist ing "Legally Blonde the Musical" cast updated packaging and formulas. tips on Vavoom products. members is scheduled to run in Elle's This year, she said, is Vavoom's time -- Andrea Nagel

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-- Michelle Edgar

10 WWD, FRIDAY, MAY 4, 2007

The HBA Report

WWD.COM

Sephora Tests Nutrition in `Healthy and Beauty' Bars

Continued from page one such products were predominantly available in France through pharmacies, supermarkets, hypermarkets and online. Dzikowski explained Sephora has signed a consulting nutritionist to help it concoct veritable beauty regimens, including detox and diet programs. There will also be information given on which nutritional supplements and drinks, plus skin creams, round out the various "menus." "Women today need this kind of information," she continued. "We will give them a full health regimen." Of course, such regimens will vary from country to country, said Dzikowski. She explained the idea for introducing a nutritional element into Sephora stemmed from market research showing the majority of women today are less concerned about the onset of wrinkles (the target of most facial skin care products) than about how best to achieve general well-being. Sephora's first so-called "healthy and beauty" bars will stock about 10 brands of nutritional supplements and drinks. So far, the lineup includes Fushi, Dr. Perricone and Dr. Murad, plus the perfumery's own brand -- including its 24H Slimming Program. The bar, measuring about 22 square feet, will be added to 27 of Sephora's more than 200 doors in France in September, the same month that advertising for the concept will break countrywide. Then, depending on how it functions, "healthy and beauty" could be rolled out further next year. The perfumery chain will introduce what it calls the Sephora University of Skin Care, a Paris school that will train beauty advisers, as well. Such additions are part of Sephora's attempt to lasso a wider swath of the skin care market, since now the retailer is better known here for its makeup and fragrance savoir-faire. However, the new concepts are not indicative of an about-face in strategy. "We wanted to nourish our beauty statement; it wasn't a quest to change the DNA of Sephora," said Dzikowski. Sephora would not discuss projections, but industry sources estimated its new nutritional business would generate $13.5 million at retail during its first year in France. Already, sales of nutritional beauty supplements register strong growth. In France between 2003 and 2004, the business in antiaging supplements, for instance, gained 15 percent, to 155 million euros, or $184.1 million at average yearly exchange, according to tracking firm Eurostaf. Fushi, among the early pioneers of detox drinks and supplements, posted sales that were up 130 percent, to 1.8 million pounds, or $3.3 million at average yearly exchange, in 2006 over 2005. The company, founded in London, now sells products in 600 doors worldwide. Fushi's founder and chief executive officer, Ranish Jansari, lauded Sephora's new concept. "I think it is about time that companies started realizing there's a demand for beauty that's not just about perfume or cream, but about well-being," he said. And that demand is expected to keep growing quickly around the globe. "As consumers become more concerned about the environment and individual well-being, the oral supplements sector is well positioned for growth," said a recent report

Fushi nutritional items.

from London tracking firm Mintel International. The category can ride on the back of the organic and natural foods trend. In fact, Whole Foods has been merchandising beauty and supplements side by side, as the latest in a long line of manufacturers and specialty retailers that have dabbled in ingestible beauty products, going back to the early Eighties and the halcyon days of Aveda. But now the idea is being pushed by an international beauty retailing power, suggesting that the time has finally arrived for nutritional supplements. "People are realizing that what you consume is more important for your skin's appearance than what you put on it," said Fushi's Jansari. Also expected to drive the nutritional "beauty" market's gains is the introduction of innovative products, including Danone's Essensis vitamin-rich yogurt, positioned as an oral beauty supplement, that was introduced in March, industry experts said. And high-tech nutritional supplements are being introduced at a rapid clip, key for consumers hungry for novelty. In the first quarter of this year, there was an uptick in the launches of supplements containing the antiaging ingredient collagen, noted Mintel research. It highlighted Japanese firm Kanebo's Royal Supply Q10 Collagen product, targeted at women aged 50 and over, and the U.K.'s Proto-Col, "pure" collagen capsules billed as an alternative to Botox. Among the newcomers to the nutritional game are capsules from Nude natural treatment brand, of London, which will be launched in June. "If you feed the skin properly, it can look after itself," said Bryan Meehan, Nude's founder. "This isn't medical -- that's not what we're about," said Dzikowski. "We are into happy science."

-- With contributions from Brid Costello

Flowers Picks Natural Ingredients

us. We are hoping, by the end of the year, to have it in about 50 spas and resorts. SANTA MONICA, Calif. -- As the co- That's our focus to begin with, although owner of a popular Santa Monica tanning along the way we expect to have it picked salon, Susie Hatton has seen her share of up by some cool specialty boutiques." Although most of the products are for clients with skin problems. So to meet their needs, Hatton got to skin and body care, there are a few color work on formulating a skin care line made cosmetics items. These include two shades entirely from flowers and herbs, mirroring of Lip Gloss, both infused with grape seed the all-natural and organic sunless tanners oil, shea butter and monoi de Tahiti oil, which is extracted from she uses at the Chocolate the coconut of the Tahitian Sun tanning salon. palm. There is also a sheer The line, Flowers, is now Lip Plumper infused with going out to high-end resorts camphor, clove, pepperand spas across the counmint and wintergreen, and try, including destinations the Every Girl's Bronzer, such as the Casa Del Mar which is designed to be hotel in Santa Monica and used on any skin tone and the Viceroy Palm Springs. provides a dose of shimmer Comprising 21 face and body and SPF 30 sunscreen. stockkeeping units, the colThe collection is housed lection contains no chemical in simple, clean packaging preservatives, parabens or Flowers' Cranberry-Vanilla using all recycled materials. bleaching agents; the color- Skin Revitalizer. "It's very apothecary ation of the products derives and high-end looking," Hatton said of the entirely from their natural ingredients. "The Cranberry-Vanilla Skin Revitalizer line, which is produced in Colorado. Items will sell from $16 for the Lip has cranberry seeds in it, so the color of the product is reddish," said Hatton. "Similarly, Gloss to $60 for the Perfect Treatment, an the Grapeseed Body Oil is a grayish shade, antiaging cream that contains sea buckbecause that's what grape seed oil looks thorn berry, hyaluronic acid and albumin. The launch of Flowers dovetails with like when it hasn't been bleached." Because of the pure and organic nature the plans for increased distribution for of the line, Hatton said distribution would the Chocolate Sun private label skin care line, which has been available for the automatically be somewhat self-limiting. "We want the collection to only be in past two years exclusively at the salon. places that understand how natural prod- As of this summer, said Hatton, the fiveucts work," she said. "We want to go into sku's range of chemical-free sunscreen places that are wellness-minded, for peo- and self-tanners will also be going out ple that follow the same philosophy as into high-end resorts and spas.

By Kavita Daswani

SNIPPETS

UNILEVER NUMBERS: Unilever reported Thursday its first-quarter profits from continuing operations rose 5 percent, to 1.05 billion euros, or $1.38 billion at average exchange. Its turnover was flat year-on-year at 9.53 billion euros, or $12.49 billion, in the three-month period ended March 31. At constant exchange rates, profits gained 9 percent and sales increased 5 percent. By region, turnover grew 2.1 percent in Europe, to 3.54 billion euros, or $4.64 billion; they were down 5.5 percent in the Americas, to 3.23 billion euros, or $4.23 billion, and they rose 4 percent in Asia/Africa, to 2.75 billion euros, or $3.6 billion. Underlying sales growth was up 3.6 percent, 3.2 percent and 11.8 percent, respectively. FIRMENICH ACQUISITION: Flavors and fragrances supplier Firmenich has agreed to buy the flavors division of Danish food supplier Danisco for about 730 million Swiss francs, or $601 million at current exchange. The acquisition is expected to expand Firmenich's product offering and market coverage, particularly in vanilla, ice cream and beverage bases, and reinforce its position in citrus, naturals and the dairy segment, the firm said in a statement. The purchase will "enlarge the creative scope of [Firmenich's] perfumers and flavorists," Firmenich stated, adding it will "be creating an innovation center in the south of France, specifically designed to further develop its expertise in natural fragrance and flavor extracts." The deal is expected to close at the end of next month. CHANEL MOVE: Chanel Parfums Beauté's Comité d'Entreprise (Work's Committee) has approved a project proposed by the company that aims for an increase in employment. As reported, France's labor union, the Confédération Générale de Travail, had called for protests against the transfer of Chanel's lipstick production from the Paris suburb of Pantin to the company's factories in Chamant and in Compiègne, both in the Oise region of northern France. The union had believed the move would cause layoffs. According to Chanel, its project, dubbed Horizon 2009, will create 53 jobs at the other sites, resulting in an increase of employment overall in the next two years. Chanel has 3,500 employees in France. AWARD SEASON: A 300-strong bevy of beauty executives gathered here last week for the 2007 Cosmetic Executive Women U.K. Beauty Awards. Winners included classic products -- such as Chanel No. 5, which picked up the best classic prestige women's scent accolade, and Palmer's Cocoa Butter Formula Lotion, which won the best classic mass skin-care product category. New products were also lauded -- including Hermès' Terre d'Hermès, named best new prestige men's scent, and Max Factor's Masterpiece Mascara, which took the prize for best new mass makeup product. The winning items, voted on by CEW members in 21 product categories, will be promoted in World Duty Free, Harrods and House of Fraser stores.

WWD, FRIDAY, MAY 4, 2007 11 WWD.COM

A Modern View of Paul Poiret

By Marc Karimzadeh

NEW YORK -- Behind every great man, there is a great woman. That is perhaps one of the most significant points made by "Poiret: King of Fashion," the exhibit opening at the Metropolitan Museum of Art's Costume Institute next week. Beyond the importance of Denise Poiret during Paul Poiret's creative peak in the 1910s, the show highlights a largely neglected aspect of the designer's creations -- the modernity of his garments and their construction. Poiret's legacy may be the liberation of women from corseted and reinforced 19th-century silhouettes, but Harold Koda, curator in charge of the Costume Institute, with curator Andrew Bolton, are hoping to shake that sense now. Bolton said the idea for the exhibit came from a sale of Denise Poiret's personal wardrobe at Paris' Piasa auction house in May 2005, and about half the pieces once belonged to her. "When people normally talk about Paul Poiret, they refer to the fact that he liberated women from corsets, but hobbled their legs with hobble skirts," said Bolton. "What was interesting about the sale was that there was so much more than that. There were jackets with raw edges -- pre-Martin Margiela -- or coats made from one piece of fabric." The Poirets divorced in 1928, shortly before the designer inked his autobiography in which he downplayed his wife's importance -- a notion Koda and Bolton hope to correct with the show. "He saw something in this young woman, and she provided him with a model for the 20th-century woman," Koda said. "She wasn't a Parisienne, and because of that, she was free of that convention that constituted Parisian style at the time. She didn't feel like she had to conform, and there was a synergy between the man who wanted to break the rules and the woman who The Reverend was his co-conspirator." wool coat, 1905. That translated into radical designs, such as a babydoll, off-the-shoulder minidress that Denise Poiret wore A fancy dress mixed without bust support or culottes. material costume, 1911. The exhibit features 17 vignettes, with about 50 ensembles from 1905 to 1925, as well as stand-alone garments displayed against computer animations. The show highlights the confluence of classicism and orientalism, and Poiret's artistic vein, which resulted in collaborations with Georges Lepape, Raoul Dufy and Paul Iribe. "Poiret saw himself as more of an artist than a designer, and throughout his career, he positioned himself as an artist whose medium of expression was fashion, and he would often collaborate with artists," said Bolton. Upon entry, visitors will find framed pochoirs -- handcolored stenciled illustrations by Lepape featuring Poiret designs. They lead to the Reverend wool coat, 1905, which was designed from one piece of fabric and features chinoiserie motifs. Just how much a construction wizard Poiret was is underscored in computer-generated animations by digital studio SOFTlab. Two dresses are displayed along animations that chart their creation from one piece of fabric. The pieces come together origami-style, then deconstruct. Two facing vignettes highlight Poiret's furniture and fragrance interests, which he named for his daughters, Martine and Rosine. Karl Lagerfeld contributed several decor pieces from his personal collections, including Lepape illustrations, displayed with the coat in the drawing; two sconces from the Martine atelier, and even an artfully crafted bill of sale replete with a seal. Another display is dedicated to Poiret's love of partying, with a striking Persian dress from his "One-thousandand-second" fete that famously had Denise Poiret caged like a bird all night in a lamp shade tunic ensemble. The most modern piece, perhaps, is a chemise dress from upcoming show, "Summer of Love: Art of the Psychedelic Era." Max and Lubov Azria, Kate Bosworth, Ed and Christy Turlington Burns, Meredith Melling Burke and Roopal Patel will cochair, while the event's host committee boasts the likes of Michelle Williams, Chloë Sevigny, Rose McGowan, Liv Tyler, Camilla Belle, Joy Bryant, Rihanna, Maria Sharapova and Eve. Held at Skylight Studios in Manhattan, the party will include a Sotheby's silent auction of works by artists such as Ryan McGinness, Marilyn Minter and Dennis Hopper. Whether any of the fashionistas will put aside their skinny jeans for the night in favor of bell bottoms remains to be seen. TEAM TORI: Piano songstress Tori Amos performed an intimate set Tuesday night at the "American Idol"-meets-karaoke bar Spotlight Live in Times Square to kick off the release of her latest album, "American Doll Posse." Music industry folk and fans were treated to a 30-minute sampling of the multipersona album (American Doll Posse members are Tori, Pip, Isabel, Santa and Clyde -- all of whom are different figments of Amos' imagination). Each comes with her own personality and style, from glamour girl to rocker chick. And each has her own

The Ciel red velvet and embroidery dress, 1922.

The blue silk damask chemise dress, 1912.

1912 displayed on a mannequin lounging on a bed. The T-shape garment anticipated the sense of dress in the Twenties. "This is what has been forgotten about him," Koda said. "He didn't continue to advocate his modernity, because he had done it already. When [Jean] Patou and [Coco] Chanel became advocates of sportswear, he started to advance this fin de siècle beauty, and seemed lost." Koda said Poiret's tale is also a cautionary one. In 1924, he sold off his Martine furniture and Rosine fragrance businesses, and a few years later, was forced to seek backing for his couture house, ultimately losing control over his own creative freedom. He died in poverty in 1944, his fashion star eclipsed by Chanel and Patou. "Poiret: King of Fashion," which is underwritten by Balenciaga with additional support by Condé Nast Publications, will be on display from Wednesday through Aug. 5. namesake cocktail (Tori's is a Champagne cocktail with passion fruit). The show was broadcast live on Sirius Satellite Radio, but performed by Tori only: "The girls are off practicing the piano, I had to crack the whip," she joked. OPERA ASCENDANT: Models Jessica Stam and May Anderson are not your typical operagoers, but the two showed up for the world premiere of "Orfeo ed Euridice" at the Metropolitan Opera Wednesday night. That should please general manager Peter Gelb, who's pushing to get younger crowds into the opera -- and this contemporary version of "Orfeo" ought to help his cause. Afterward, director Mark Morris was blasé about his Met debut. "It's not like it's the end of my life," said the badboy choreographer, who had just seen his Tori Amos third incarnation of Gluck's opera. "I did it for Jimmy Levine," he said, referring to the legendary conductor. Designer Isaac Mizrahi, who did the costumes, showed more emotion. "I was so nervous!" he said. Meanwhile, well-wishers, including Mikhail Baryshnikov, crowded into the Mercedes T. Bass Grand Tier to congratulate Morris and his team.

Fashion Scoops

MORE MET: The bold-faced names expected to attend Monday's Costume Institute gala at New York's Metropolitan Opera House keep rolling in. The latest addition is Jennifer Lopez and hubby Marc Anthony, who will be joining Bruno Frisoni at Roger Vivier's table. Coincidentally, much of the Vivier line is inspired by Poiret, including the Rosine clutch, named after Poiret's famed fragrance. Meanwhile, Jennifer Hudson is serving as the evening's entertainment. She is expected to wear a Michael Kors creation, and will be introduced on stage by two of the party's co-chairs, Cate Blanchett and Balenciaga's creative director, Nicolas Ghesquière. Her choice of songs could not be learned. While fashion houses are typically loath to confirm any of their celebrity guests until the moment they step out on the red carpet in one of their creations, other celebrities said to be ascending the Met's grand staircase on Monday night include Jennifer Garner, Mischa Barton, Kirsten Dunst, Kate Bosworth, Mary-Kate and Ashley Olsen, Lindsay Lohan, Kate Hudson, Liv Tyler and Emily Blunt. LOVE FEST: Anyone nostalgic for the good ol' hippie days can look forward to the fifth annual Whitney Art Party on June 6, which this year will take its thematic lead from the museum's

PHOTOS BY KYLE ERICKSEN

12 WWD, FRIDAY, MAY 4, 2007

Revamped Escada Store Fuses Youth and Tradition

By Emili Vesilind

BEVERLY HILLS -- After five months and $5 million, Escada is opening a renovated 6,000-square-foot flagship here today, revealing a sleek new store concept that targets a younger, hipper customer while staying true to the brand's classic aesthetics. The company has been working to reinvigorate the brand's image without alienating its core clientele. New creative director Damiano Biella's debut collection for fall reflected the more youthful direction. The store concept replaces Escada's staid ivory-and-brass decor with updated neutrals such as silver, plum and black. "The idea was to create a neutral color palette, but not go with the traditional neutrals," said Lawrence DeParis, U.S. president and chief operating officer. Central to the revamp was the creation of 14 small rooms that flow into one another, each housing different categories and subcollections of merchandise. "The store used to be much more of an open space," DeParis said. "It now has a more residential feel. It's like a luxury home." Sales at the store, which is on street level in the Beverly Wilshire Hotel, comprise around 20 percent of total retail sales in the U.S., second only to the company's New York flagship. Ready-to-wear prices range from around $150 for a logo T-shirt from the Escada Sport line to $60,000 for a chinchilla coat, with dresses and suits around $2,000. "[The store] is really feminine and luxurious," said Frank Rheinboldt, chief executive officer. "It's very warm. The clients don't like a too-cool concept....We really want the customer to feel that they are home. We don't want to be a black box or a refrigerator." Rheinboldt said the store was overdue for a facelift: "It has our first-generation store concept. We have rolled out three generations after that." A temporary Escada store was open across the street on Wilshire Boulevard during much of the renovation before closing in March. The project is part of a worldwide refurbishment program the company launched in October. "We are spending a lot of money to upgrade our stores and put the new shop concept in," said Rheinboldt, who added that Escada plans to redo 20 to 25 stores this year, and another 20 to 25 next year. The design was conceptualized by Swiss architectural firm Caps, with principal architect Christophe Carpente at Granite floors and chandeliers its helm. An expansion of the store's acare integral to the new concept. cessories sections was key to the reconfiguration. "One of the main problems in old shop was that we didn't have enough dedicated area to accessories, maybe 5 percent of the space," Rheinboldt said. "In the new store, we have dedicated 20 to 25 percent of the space to [the category]. We're focusing much more on accessories...to show people that we are not only ready-to-wear."

The grand foyer of Escada in Beverly Hills.

Handbag prices start at around $500 for Escada Sport models, rising to around $1,000 for evening bags from the signature collection. The bags are displayed on built-in black lacquered shelves that dominate entire walls within the store. Modular tables are topped with etched-glass support vignettes comprising shoes and small accessories such as belts. Floors are covered in alternating sections of plum carpet and Nero Assoluto, a black granite tile. The oval-shaped grand foyer is swathed in ceramic tile featuring the company's double-E logo in relief, covered in a mirror-like platinum alloy. A 9-foot chandelier made from hundreds of imprinted metal chips -- dog tag-like rectangles traditionally used in the protective aprons worn by Parisian butchers -- hangs from the foyer's ceiling. The custom-made chandelier is replicated in different shapes and sizes throughout the unit's 14 rooms. The unusual design element culminates in the store's largest, most central room, in the form of a floor-to-ceiling rectangular light sculpture affectionately called the champignon atomique, or the atomic mushroom, by the company's executives and architectural crew. White leather Mies van der Rohe chairs and side tables coated in metallic platinum alloy skirt the dramatic lighting fixture. A sunglass display lighted from behind was built into one wall, just outside a discreet enclave that houses the checkout counter. Farther into the store is a VIP room. The inviting space features a cushy seating area and a flat-screen TV. The brand's rtw collection hangs from racks inset into the walls of each of the store's rooms, illuminated from behind and above as though they were pieces of fine art. Dressing rooms are lined in muted-toned silk brocade, and feature built-in shelving for customers to stow their belongings. "The concept was to keep lighting subdued in the stores, but to have the clothes pop," DeParis said.

Féraud Returns to U.S. With 2 Units

By Sharon Edelson

NEW YORK -- After a three-year absence from the U.S., Louis Féraud is back with a 1,500-square-foot store here and a 1,300-square-foot unit in Los Angeles on the way. The store at 717 Madison Avenue in Manhattan, near 63rd Street, had a soft opening last week and is expected to do between $2 million and $3 million in annual sales, said Leslie Goodrum, sales director for Féraud in North America. The unit represents a new retail prototype for the French brand, with red accents -- the late designer's favorite color -- on walls and furniture. The Fleur de Féraud, a stylized blossom painted by Féraud, is incorporated into the decor and appears on the brand's logo. A skylight bathes the clothes in natural light. Sleek tables display knitwear and one of them serves as a perch for two mannequins on opposite ends. The Féraud collection has been updated and those who associate Féraud with formal couture and proper suits for the Ladies-Who-Lunch crowd will be surprised to find a fire engine red leather jacket with gold buttons for $1,795 and a red patent leather raincoat for $1,195. The collection, which is designed by Jean-Pierre Marty, has a nautical theme for resort and spring. "It's youthful and modern," Goodrum said. "This brand is appealing to a customer who never knew Féraud. They don't have that baggage. They love that the brand is not [sold] everywhere, that it's not overexposed." New products on tap include a women's fragrance that is to launch this year. Handbags and belts will bow next spring. Marty, who worked at Guy Laroche before joining Féraud, delved into the archives for inspiration. "He's very much like Mr. Féraud," Goodrum said. "He's a painter and he loves color and fabrics. Féraud was always known for prints. We always have leopard and floral prints in the collection." Louis Féraud has been through some rocky times, including multiple changes in ownership and a revolving door of designers. After Féraud died in 1989, his daughter, Kiki, took the design reins. She sold the business to the Dutch apparel group Secon in 1999 and Yvan Mispelaere became the brand's designer. Escada AG took a major stake in Féraud in 2001 and hired Jean-Paul Knott as design director. Bavaria Industriekapital, a German

The Féraud store on Madison Avenue.

investment fund, bought Féraud in 2003, and Alliance Designers, a luxury group owned by French entrepreneur Alain Duménil, acquired the business in 2005. "The changes in ownership hurt the brand," Goodrum said. "The new owner is making a financial commitment to stores." Féraud, which had worldwide sales of $80 million in 2006, plans to open 14 new stores this year, including units in China, Russia and Dubai. Goodrum said Féraud would ultimately like to have eight to 10 units in the U.S. "We want to focus on being on the best streets," she explained. A unit opening at 9534 Brighton Way in Los Angeles at the end of the month will help Féraud make inroads with the red carpet crowd, Goodrum said. Féraud's shop on West 56th Street in Manhattan, which closed in 2004, "was a little too off the beaten path," Goodrum said. "This Madison Avenue spot is perfect for our customer."

Louis Féraud is seeking a younger customer.

PHOTOS BY KYLE ERICKSEN

PHOTOS BY DONATO SARDELLA

WWD, FRIDAY, MAY 4, 2007 13 WWD.COM

Media/Advertising

MEMO PAD

DOUBLE CLICK: Julianne Moore may be Stefano Pilati's date

IS IT A GOOD THING? In an unlikely pairing, Martha

for Monday night's Costume Institute ball, but another woman in his Yves Saint Laurent entourage is also sure to turn heads: Gisele Bündchen. The Brazilian supermodel is expected to wear YSL to the event, signaling her new affiliation with the French house as the focus of its forthcoming fall-winter advertising campaign. Inez van Lamsweerde and Vinoodh Matadin captured Bündchen cavorting in the streets of Paris at night. According to Pilati, that's a moment ripe with possibility, when a woman can pursue a "double life" -- should she be so inclined. Bündchen certainly played the role to the hilt for the Dutch photo duo. Pilati continues to shake up YSL's advertising with new photographers and faces -- including for his men's campaign. For fall-winter, he tapped Marc Newson to pose at the industrial designer's home and in his atelier. It's the second season Pilati has used a personality rather than a model for the men's campaign: Vincent Gallo is featured in the current spring series. Previous YSL campaigns have used photos by Juergen Teller, Jeff Burton and the duo of Mert Alas and Marcus Piggott. -- Miles Socha

TAKING SHOTS: Us Weekly, consumer advocate? That's

the spin Wenner Media is putting on the title's decision to run a story this week calling out its competitors for misleading consumers. In the piece, "All the News That's Fake," Us Weekly points to recent issues of OK!, Life & Style, In Touch and Star and "corrects" headlines and accompanying stories in each magazine about celebrity breast augmentations, Jennifer Lopez and Marc Anthony breaking up, Brad Pitt wanting Jennifer Aniston Gisele Bündchen in back, and Katie Holmes talking about divorcing Tom Cruise. the fall YSL campaign. "The level of fabrication has reached a fever pitch that we needed to do something about it," said a spokesman for Wenner Media. "These headlines are completely egregious and misleading." So why not address its own mistakes while calling attention to the competition? "We do run corrections in the front of the magazine, and it happens in the regular course of news gathering," said the Wenner spokesman. But, he added, "We don't make up a headline." OK!, Life & Style, In Touch and Star stood by their stories when WWD called for comment, and a spokesman for Star further challenged the article. "I find it amusing that Us Weekly and [editor in chief] Janice Min thinks they are above all else in the celebrity category of weekly gossip magazines. How can she point fingers when [The New York Post's] Page Six had to run a retraction from picking up her stories in the last year?" A Wenner spokesman responded to the Star spokesman: "We don't say that we don't make mistakes; that is the nature of any news gathering operation. What we don't do is wholesale fabricate stories to sell magazines." -- Stephanie D. Smith The Berlin Zoo's Knut. LITTLE CUTIE: One of the May cover stars of Vanity Fair has a book deal, and it's not Leonardo DiCaprio. The Berlin Zoo has signed away international publishing rights to Knut, the baby polar bear who was digitally united with DiCaprio for the magazine's green issue, to Turtle Pond Publications. A spokeswoman declined to discuss the terms of the deal, but the chief executive officer of the Berlin Zoo said some of the proceeds would go to educational initiatives for the environment. Scholastic will publish the first Knut book, to be written by best-selling children's author Craig Hatkoff, this fall, and a Web site will follow next year. -- Irin Carmon

Stewart Living Omnimedia is working with Costco to sell frozen and refrigerated food in Costco locations across the country. And while it's unlikely that Stewart will put her own spin on the Hungry Man dinner, the food line will start appearing in stores later this year or in early 2008. Chief executive officer Susan Lyne mentioned the launch Thursday while also providing remarks on the company's first-quarter results. On that note, revenues rose 12 percent to approximately $40 million in the publishing division, thanks to higher ad pages and rates. Ad pages jumped 7 percent at Martha Stewart Living and 14 percent at Everyday Food, while total ad sales grew 20 percent to $21.4 million during the quarter. Lyne added the company expects a net investment of $8 million this year for Blueprint and an additional $1 million to purchase photo rights and test additional magazine concepts, which were not disclosed. Looking ahead, Lyne forecast $45 million to $46 million in publishing division revenues during the second quarter and 14 percent ad page growth at Living and 18 percent growth at Everyday Food. And although it's too soon to measure it, the company's new line of paper-based craft and storage products is off to a fast start, even though the products have yet to hit the shelves. While formal marketing for the products begins on Sunday, Lyne reported that during its first week in stores, retailer Michaels has already sold more than $1 million -- and this is while boxes are still being unpacked. -- Amy Wicks

FLIPPING OUT: Flip.com has a long way to go before it

catches up to MySpace, but the teen networking site Condé Nast launched in February is getting a following. The site gathered 288,000 unique visitors in March, according to comScore/MediaMetrix, up from 183,000 in its first month. That's more than cosmogirl.com's 281,000 unique visitors and teenvogue.com's 101,000, but less than seventeen.com's 745,000. MySpace.com saw 66 million unique visitors in March. The average age of Flip.com users is 17 and almost all of them are female. But they're not all fashionistas from Manhattan. "Some of our deepest users are out in the heartland," said Flip.com publisher Jane Grenier. "There's a hunger for creative outlets in the heartland that this site hits spot on." Flip.com is independent from any of the Condé Nast magazine titles, but there appears to be little internecine rivalry between the site and Teen Vogue. In addition to Teen Vogue selling subscriptions on Flip.com, the two have been able to create some editorial and advertising links (though Grenier stressed advertising on Flip.com was not sold as a bundle with Teen Vogue). For example, Pacific Sunwear is wrapping up a contest where girls won a chance to shadow a photographer, stylist or producer while the retailer shot its back-to-school ad campaign. As the winners take their apprenticeships, each will document their experiences with digital and video cameras to create flipbooks for Flip.com. In August, Teen Vogue will run a special advertising section for Pac Sun featuring behind-the-scenes images from the ad campaign. Podcasts from the winner's experience will also go live in August on Flip.com, teenvogue.com and pacsun.com. Though Flip.com limited its advertising to just five partners at its launch, more are signing up. Nike, which was an advertiser during the launch, will increase its presence on the site through the summer. Gillette last week started advertising on the site, and Ugg will run in August. Grenier also wants to expand the advertiser base beyond fashion and beauty to automotive and electronics. "The kind of integrated conversation that can happen on Flip.com can happen in any [advertising] category. Getting her opinion set on a particular brand or product is as important to a cell phone carrier [or] to an automaker as it to a fashion brand," said Grenier. Aside from advertising, Grenier said CondéNet is looking at ways to improve the site, including ways to access photo management sites, such as Flicker.com or Photobucket, so users can quickly upload their photos to Flip.com. CondéNet is also developing tools that allow flipbooks to be placed on girls' MySpace pages. Such ongoing tweaks are a reason why the word "beta" is still located under the Flip logo. Which isn't unusual -- Google's GMail still includes "beta" under its logo after launching three years ago. -- S.D.S.

Gothic & Lolita Book Goes Medieval

J

apanese teens have a reputation for embracing trends with cult-like fervor. The most recent kid craze of donning Gothic and Lolita garb is now the subject of Phaidon Press' latest style tome, "Gothic & Lolita," which photographically documents this scene of medieval getups in Tokyo and Osaka. "The idea for `Gothic & Lolita' came about after many years of visiting Japan and seeing firsthand the incredible energy of street fashion in both Tokyo and Osaka," said Mark Sanders, a consulting editor at Phaidon. "What often seemed on an immediate level `bizarre' cultural excess has in fact its own internal set of rules and logic." Page by page, "Gothic & Lolita" showcases teens posing in their over-the-top, doll-like or dark getups, from corsets and spikes to lacy Victorian dresses, tutus, bows and wigs. The pictures were taken by Masayuki Yoshinaga, and the book was edited by Katsuhiko Ishikawa. It has little text except for a few bullet points on each subject's point of fashion and current obsession. And these prove to be as arbitrary as the emergence of the trend itself. For instance, Yuka, age 18, teams crochet tights with a dress of graffiti patchwork motifs, and lists her own funeral as a fashion inspiration, and fermented beans as her current obsession. "The Gothic and Lolita scene first came in existence in the late Nineties with the explosion of visual kei bands, Japanese rock bands who were characterized by their New Romantic clothing and makeup," Sanders explained. "But in the decade since then, the scene has taken on a life of its own. Gothic

fashion fuses with Lolita style to create this interesting hybrid, which is so Japanese. They take Western culture and put their own personalized spin on it. It is as if you are looking at codes of your own culture regurgitated back at you, a new form of global pop culture for the masses." His personal favorite is the shot of Rose, 26, and Giggles, 32. Rose is wearing a white ruffled lace gown, and Giggles' Victorian shirt is cinched in by a corset held in place with suspenders. Sanders calls the duo "Byronic Goths." "They look so great, a mixture of fantasy with a literary edge," he said. "The girl even has the melting clock face painted on the side of her head, [with] memories of Dali. There are not many other youth cultures in the world that are alive to the past. It reminds you of the Punk attitude of the Seventies in London, a time when bands could reference Dostoyevsky and get away with it."

-- Marc Karimzadeh

14 WWD, FRIDAY, MAY 4, 2007

WWD.COM

Keynoters See No End in Sight for Luxe Boom

By Rebecca Kleinman

PALM BEACH, Fla. -- Luxury's hot, and it's only going to get hotter. That was the message delivered to 300 attendees at the sixth annual Luxury Summit, the largest to date, presented by American Express Publishing this week at The Breakers Palm Beach. Confident that luxury is here to stay, keynote speaker Burt Tansky, president and chief executive officer of the Neiman Marcus Group, said its magical hold has seeped into every segment -- from retailing to hospitality to transportation -- and failure to comply with the luxury consumer's whims and high service standards results in loss of business. He added that nothing, including stock market slumps or a terrorist attack even on the level of 9/11, could rattle consumption for long. His proof? Store sales recovered within a year of 9/11 and have been strong since, because Neiman's never wavered from its founding mission as a purveyor of quality goods and provider of an excellent shopping experience, and beBurton Tansky cause once someone acquires a taste for luxury, he or she won't relinquish it. "Our greatest enemy is the husbands who tell their wives, `Enough!' But she will accept this mandate only for some time before resuming consumption," said Tansky. Once the consumer is secured, challenges lie in bringing new, advanced and more luxurious products to market, and in competing against what Tansky calls "luxury counterfeiters" through impeccable service. Since salespeople accomplish this task, Tansky said retailers must be heavily invested in intensive training programs, have an open-floor sales policy that allows salespeople to float among departments gathering merchandise on behalf of customers and continue education about trends, products, telephone sales and relationship development. "We have one of the lowest turnovers in the industry, and many of our salespeople earn in excess of six figures annually," he said. But he believes business must change through subtle refinements. One example is the company's booming e-commerce, which Tansky reported garners the highest single volume store sales since it was launched seven years ago. Online media such as blogs, podcasts and e-mail correspondence are also at the forefront, though he emphasized they mustn't depersonalize the experience. Kicking off his speech, Robert Polet, president and ceo of Gucci Group, said he looks to the front line -- stores -- where brands come alive and a point of sale is made or lost. The outcome teeters on what he summarized as "the I need it factor," much stronger than "I want." "This concept came to me watching a woman in one of our stores say, `I must have that bag.' She wasn't concerned about price, but that it wouldn't be in stock," said Polet. China, India and Russia are approaching this state, according to Polet. He reported China Robert Polet was home to 400 shopping malls, 200 more were under construction and another 300 were in development. Come year's end, there will be 16 Gucci stores there, where the company operates at an 80 percent growth rate. "By 2014, China will replace Japan in luxury buyers," he said. The company also plans to open two Gucci stores in India this year, though Polet said the country lagged behind China by five to 10 years. He considers Russia an exciting market, too, since 13 percent of the nation's household income is spent on clothing and shoes, and Russian women are among the remaining few who purchase total looks. "We estimate Russian operations at a 70 percent growth rate," said Polet.

Talbots Slashes Forecast Chaus Lists 41% Drop in 3Q Earnings After Soft Sales in April W

NEW YORK -- Talbots Inc. on Thursday revised firstquarter earnings per share downward to the range of 7 cents to 11 cents, from a previously announced expectation of 36 cents to 43 cents. The Hingham, Mass., firm also said same-store sales were expected to be negative, low to mid-single digits for the first quarter, versus previous expectations of positive, low single digits. Revised EPS for the core Talbots brand is expected in the 30 cents to 32 cents range, compared with 51 cents a year ago. Dragging down EPS expectations is the negative 10 cent range for the J. Jill business, as well as the negative impact of acquisition-related costs of 13 cents. Arnold B. Zetcher, chairman, president and chief executive officer, said in a statement that the Talbots brand started the quarter strong, but that strength was offset by the "softness in our mid-season sale event." He said regular-price sales rebounded in March, but then declined in April, due in part to weaker-than-expected customer response to Talbots' casual merchandise. The company said it remained "cautious" and expected to provide additional information on its revised outlook for full-year 2007 when it posts the results of first-quarter earnings on May 23. omen's apparel manufacturer Bernard Chaus Inc. reported on Thursday a 41 percent drop in third-quarter earnings on a 4 percent sales decline. Results for the nine-month period, however, had significantly improved in comparison with the prior year's period. For the three months ended March 31, net income fell to $563,000 or 1 cent a diluted share, from $951,000, or 3 cents, in the year-ago period. Revenue decreased 4 percent to $38.2 million from $39.7 million. For the nine-month period the company swung to a profit of $3.1 million, or 8 cents a diluted share, from a loss of $3.8 million, or 10 cents, last year. Revenue increased 17 percent to $117.1 million from $100.5 million. "The company achieved significantly improved results for the year-to-date period reflecting higher revenue and lower costs as a percentage of sales," said Josephine Chaus, chairwoman and chief executive officer, in a statement. "We continue to focus on our three-pronged strategy of growing our branded, private label and licensed business." Bernard Chaus designs, sources and markets women's career and casual sportswear through the Josephine Chaus, Chaus, Cynthia Steffe and Cynthia Cynthia Steffe trademarks, as well as a private label brand.

-- Jeanine Poggi

Markdowns Send Bebe Net Down 3%

ebe Stores Inc. posted third-quarter earnings Thursday that dropped 3 percent due to higher markdowns on early spring merchandise. For the three months ended April 7, net income fell slightly, to $12.9 million, or 14 cents a diluted share, from $13.3 million, or 14 cents, in the year prior. Sales for the quarter rose 16.3 percent, to $154.4 million from $132.8 million, and total same-store sales fell 0.4 percent. For the nine-month period, earnings climbed 11 percent, to $57.6 million, or 61 cents a diluted share, from $51.9 million, or 55 cents. Sales jumped 19 percent, to $508.2 million from $426.9 million last year. The company expects fourth-quarter earnings in the range of 17 cents to 21 cents a share.

B

-- Vicki M. Young

-- J.P .

Jones to Try Price Technology to Rebound Comps

By Denise Power

CHICAGO -- Jones Apparel Group is planning a technology-driven initiative to boost inventory turns and margins through advanced pricing practices. The apparel company will unveil on Monday plans to roll out price optimization software to nearly 1,000 of its mall and outlet stores, starting this fall with footwear stores including Nine West and Easy Spirit, followed by apparel stores such as Jones and Anne Klein early next year. Specialty store division Barneys New Y ork is not involved. Testing is under way now and a 60- to 90-day pilot in Bandolino footwear stores begins next month, followed by a rapid ramp-up to other footwear divisions, Nine West chief operating officer Bill Tracy told WWD. "We feel very confident that once we get past the pilot stage, this will be very well embraced and we'll see significant positive impact to comp-store sales growth and also to our margins as well as inventory turn," Tracy said. (For the quarter ended April 7, overall comp-store sales were down 5 percent and outlet footwear stores down 12.3 percent.) The software, from Oracle, generates pricing recommendations by analyzing a host of variables influencing demand such as seasonality, price elasticity and even inventory presentation in store. Tracy, who calls himself a champion of the project along with Jones executive vice president and chief technology officer Paul Lanham, said there are important benefits for the 228-store Nine West division in particular. Nine West's new design, now in 14 stores, has more of a boutique presentation and an edited assortment. "It is a lot cleaner look, easier to shop and less clutter, so there are fewer [stockkeeping units] displayed in the store at one time," Tracy said. "Having this type of tool will certainly help us maximize the inventory turn and allow us to get new fashion right and new trends to the selling floor faster." The $4.7 billion Jones Apparel Group will spend more than $1 million on price optimization technology and expects a "significant" return on investment based on the experiences of other retailers using the software, Tracy added.

WWD, FRIDAY, MAY 4, 2007 15 WWD.COM

Drama Wins Out at Driehaus Awards

By Beth Wilson

C

hicago philanthropist Richard Driehaus, a collector of some 40 vintage cars, loves fine design with a dash of drama. So it's little wonder that the most dramatic student fashion presentation won top honors at the sixth annual Driehaus Awards for Fashion Excellence held at Driehaus' own South Loop warehouse. School of the Art Institute student Robyn Coffey, whose designs relayed a postapocalyptic "Alice in Wonderland" theme, captured the audience's attention with her vibrant costuming and in-your-face models portraying characters such as the White Rabbit, Caterpillar and, of course, Alice. "They rocked it behind my wildest," said Coffey, who admitted the stage theatrics raised some controversy when Alice, dressed in a black cropped vest with samurai shoulders, made an obscene gesture. "I wanted Alice to look like she could kick your ass, not just sit around and drink tea." The designer said she began sourcing materials some eight months ago, asking friends for all their used chicken and turkey bones to attach to the caterpillar's chest piece along with vintage brass door knockers. The Caterpillar's denim jacket and train filled with polyester stuffed puffs, for example, weighed some 30 pounds. Coffey also disassembled a pocket watch to sew all the pieces onto the White Rabbit's coat.

Robyn Coffey's designs relayed a postapocalyptic "Alice in Wonderland" theme.

CAR PHOTO BY MITCH CANOFF; RUNWAY BY JIM FROST

Richard Driehaus' vintage cars.

Coffey said the School of the Art Institute appreciates conceptual fashion, which appealed to her. "I knew I didn't want to be in the [fashion] industry," she said. "I call my designs costumes, not fashion. I didn't want to make things people buy, but make things that people would pay to see." Coffey, a senior, won $3,000 in prize money and plans to complete an internship in New York this fall with famed costume designer William Ivey Long. One of the panel's judges, Alison Kelly, a designer from last season's "Project Runway," said judges looked for originality and a cohesive message. "It's refreshing to see this type of creativity," she said.

Kelly, whose Dahl line is available on Shopbop.com, is creating her spring and summer collection. It will feature several hand-crocheted pieces, prints of birds and outerwear. "I'm creating a whole wardrobe," said the designer, who also is investigating using organic cotton and other eco-friendly fabrics. Twenty-four designers participated in the competition representing Chicago's four design schools -- Columbia College, Illinois Institute of Art, International Academy of Design & Technology and the School of the Art Institute. Driehaus, who made his living in money management, said he enjoys supporting the arts, architecture and design.

"I like to see people being creative and thinking out of the box," he said. "No one does it better than the fashion industry." The car industry used to produce cars with drama, style and flair, said Driehaus, who showcased his collection of vintage cars, including a black 1941 Chrysler Thunderbolt valued at $1 million and an original 1948 Tucker. "Then they got more into function than form," he said. The event, which attracted more than 150 people including Jason Gedrick of "Desperate Housewives," raised $126,000 for TrinityKids Care Hospice and Circus Remedy. Driehaus also pledged to match that amount, increasing the total raised to $252,000.

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STORE MANAGER

Beauty Co., Carol's Daughter, seeks a Store Manager & Associates w/relevant retail experience & strong interpersonal skills to manage our Newport Centre, Jersey City, NJ location slated to open in summer, 2007. Please E-mail resumes to: [email protected] Visit us at: www.carolsdaughter.com

Reduce Your Shipping Costs!

We are a Garment Manufacturer seeking to share shipping costs. We have a state of the art distribution center l o c a t e d in Secaucus, New Jersey. Clean, organized, computerized and seeking other garment companies to share shipping costs with us. We ship & receive domestic & foreign product. To discuss this opportunity, please contact Joann at 212-869-3300, x332 or email [email protected]

President / COO

Apparel manufacturer in Greater Los Angeles ares seeks a hands on President/COO. Candidate must have production background along with strong management skills. Send resumes in confidence to: [email protected]

Graphic Artist $60-65K BOE. Current exp in newborn, layette, infant, toddler, girls 4-6x, 4-7 boys etc. Illust/Photoshop. Mdtn co. Email: [email protected]

SAMPLE MAKER Eveningwear designer seeks sample SALES PROFESSIONAL maker w/ couture abilities. Excellent SaraMax Home Décor, a div. of the salary and benefits. Please call 212- Saramax Apparel Group seeks aggressive highly motivated sales professional 274-0616 or fax resume 212-274-0614. that can grow existing business. Proven track record of growing businesses and opening new accounts for women's designer brand. Min 5 years required. Strong relationships with exp in shipping & inventory mgmt. high end independent retailers, deComplete knowledge of international partment stores, specialty store chains shipping procedures and computer and off price store chains. We offer a efficiency a must. Send resumes to competitive base salary plus [email protected] sion. Please submit resume / cover letter indicating salary history to: SOURCING DIRECTOR .......TO 150K Ronnie Gindi [email protected] NJ Loc.Read,Write & Speak Mandarin Equal Opportunity Employer Jennifer Glenn SRI Search 212-465-8300 [email protected] www.srisearch.com

SHIPPING MANAGER

CAD-GRAPHICS-FABRIC PRINTING U4ia-Photoshp-Illustr: 212 679 6400 www.sanodesignservices.com

TRIM BUYER / PRODUCTION ASST.

SALES REP

Juniors, Men's, & Accessories Co. seeks Sales Rep to run NYC Showroom. Line is currently sold to many Specialty Retail Chains & expanding into Department Stores. Please contact: (949) 878-6120.

We Buy Men's, Women's & Children's All Quantities WE HAVE INSTANT MONEY We are nice people to deal with Also HBA and General Merchandise. Call Rocky 800-762-5488

CLOSE OUTS

PATTERNS, SAMPLES, PRODUCTIONS

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

PATTERNS, SAMPLES, PRODUCTIONS

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

- BRAND AND PRIVATE LABEL Maggy London International; a major dress manufacturer based in New York is in the need of experienced TRIM BUYER/PRODUCTION ASSISTANT. Seeking an experienced (3-4 years) The ideal candidate must be computer professional to work in a small fashion literate & posses trim buying experience design company in a capacity of opera- for both brand and private label mantional / office manager: must be able to ufacturing domestic and Imports. multitask, coordinate shipping/invoicing, Chinese/ English Bi-lingual helpful, but work closely with production manager, not mandatory. Benefits/ 401K. Reply in build strong customer relations and confidence with salary requirements to: work under pressure. Fluency in [email protected] QuickBooks, Microsoft Office and or 201-964-5892 English language required. Qualified candidates should send resumes to: [email protected]

Operational / Office Manager

ATTENTION CLASSIFIED ADVERTISERS!

The deadline for the Tuesday, May 15 issue of WWD will be FRIDAY, MAY 11 at 12 noon. To place a classified ad, please call 1-800-423-3314 Thank you for your cooperation.

PRODUCTION TECHNICAL MANAGER

Major apparel manufacturer based in New York is in the need of experienced production manager. The ideal candidate must be technical in terms of understanding construction & fit, computer literate especially on excel and AS400 and posses production experience for both brand and private label manufactur ing in the US and overseas. Accustomed to working in both a CMT and full package environment is essential. Benefits and 401K. Reply in confidence with salary requirements to: [email protected]

BUSINESS FOR SALE Showrooms & Lofts

BWAY 7TH AVE SIDE STREETS Great 'New' Office Space Avail ADAMS & CO. 212-679-5500 Well established women's designer boutique in prime Palm Beach County location. Seasonal business, Oct - May, with loyal customer base. Present owner retiring after 25 years. Serious and qualified buyers ONLY contact 561289-6327

SALESPERSON

Est'd handbag company seeks a seasoned and motivated professional to handle sales of our private label/ branded handbags to mass and mid-tier accounts. Brands include Izod etc. E-mail resume to: [email protected]

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