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MICHELLE’SFASHION FESTTHE FIRST LADY INVITED AGROUP OF DESIGNERS ANDSTUDENTS TO THE WHITEHOUSE FOR AN ALL-DAY EVENTABOUT THE INDUSTRY. PAGE 8WWDTHURSDAY, OCTOBER 9, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILYCoolHandLukeWith a penchant for traditionalheritage tailoring and abackground as a trained singer,Luke Evans is not your averageaction star. Now, after a stringof supporting roles in bigaction blockbusters like “Fast& Furious 6,” the Welsh actoris finally getting in the driver’sseat for “Dracula Untold,” anaction-horror movie that’s a hitinternationally before it evenopens in the U.S. on Friday.“I’ve been building up roles forsix years,” Evans says. “Andthey’ve been bigger and biggerand bigger.” For more, seeMen’s Week, page MW1.PHOTO BY RODOLFO MARTINEZ; STYLED BY ALEX BADIAWOMEN’S WEAR DAILYB- FOR BENBEN AFFLECK MAY HAVEAMERICA’S NUMBER-ONEMOVIE, BUT HE NEEDS ALITTLE HELP IN THE STYLERANKINGS. PAGE MW4Valentino’ssuit andcoat, bothin wool, andcotton shirt.Mulberrygloves.SERIOUSBUSINESSWILLS LIFESTYLE INDIAFASHION WEEK STARTS,AND INDIAN DESIGNERS AREMORE FOCUSED ON SALESTHAN EVER. PAGE 8A RETAIL SURPRISEMurphy to Exit Gap,Peck to Become CEOBy DAVID MOINTHE APPAREL BUSINESS is tough everywhere, butwas Gap Inc.’s chairman and chief executive officerGlenn Murphy tapped out of ideas?On Wednesday, Gap Inc. let out a bombshell —that Murphy was leaving in February and passingthe baton to Art Peck, a close associate who workedwith the outgoing ceo for eight years in different rolesat Gap Inc., and currently serves as president of thegrowth, innovation and digital division.Murphy’s decision to quit Gap Inc. took the industryby surprise but it may not have been so sudden.According to sources, Murphy, age 52, was interviewedfor the Target ceo job, which he rejected, andwas recently filled, suggesting some disillusionmentabout staying at the San Francisco-based retailer.Insiders said that Murphy would not make anotherlong-term commitment to Gap after seven years on thejob even though the Gap board wanted him to stay on.Murphy would also be a candidate to become thenext ceo at J.C. Penney Co. Inc. but that retailer is believedto have slowed down its search, with its currentceo, Myron “Mike” Ullman 3rd, stabilizing thebusiness and initiating lots of changes.Still other retail sources speculated that Murphy,formerly the ceo of Canada’s Shoppers Drug Martwho turned that business around and lacked anyfashion retail experience prior to joining Gap, wasbecoming increasingly frustrated with the apparelbusiness, which retailers across the board are currentlystruggling with, and that he was tapped outon cost-cutting and creating operational efficiencies,which he orchestrated to put Gap on a stronger financialfooting and road to profitability.Murphy also sharply reduced the domestic retailsquare footage by closing hundreds of weak doorswhile driving international expansion from 10 to 50countries, including opening the first China stores andSEE PAGE 5TWO ROADS DIVERGESears Keeps SlidingAs Penney’s StabilizesBy VICKI M. YOUNG and DAVID MOINSEARS HOLDINGS CORP. and J.C. Penney Co. Inc.each saw a stock sell-off in Wednesday’s trading sessionfor different reasons, and their futures right nowcouldn’t be more divergent.At the end of last year, both retailers faced thesame dilemma: operations reshaped by activist investors,slumping sales and not enough cash flow to meettheir needs. Ten months later, it’s a different picture.The backdrop at Sears has been shaped by its financiallydextrous chief executive officer Edward S.Lampert, who is also the chairman and ceo of hedgefund ESL Investments, which together hold a 48 percentstake in the retailer. On Wednesday, the creepingfear factor moved further against Lampert’s Searsas investors sent shares down 4.8 percent to close at$28.85. The stock price dropped as low as $25.05 earlierin the day as investors were spooked about thechain’s future and concerns over its ability to payvendors for orders six months out. And while Searspeddled hard to calm investor sentiment about itsability to pay vendors, there is still much doubt in themarkets about its future. The overall sentiment is notwhether Sears will kick the bucket, but when.Shares of Penney’s fell 10.9 percent after the companyrevised its third-quarter guidance downward,due in part to a lackluster back-to-school sales inSeptember, but overall the retailer is in a better positionthan it was a year ago when its current ceo,Myron “Mike” Ullman 3rd, was trying to right theSEE PAGE 4


2 WWD THURSDAY, OCTOBER 9, 2014Aeffe Eager for a New PhilosophyBy LUISA ZARGANIMILAN — Will a new creativedirector at Philosophy be able toturn around the Italian brand?In its latest attempt to revitalizethe label, parent companyAeffe SpA has namedLorenzo Serafini creative directorof Philosophy. Aeffe presidentMassimo Ferretti claimedSerafini will inject “new life” intothe brand. Serafini was most recentlylead women’s-wear designerat Dolce & Gabbana, followingan experience in the same role atRoberto Cavalli. His first collectionwill bow for pre-fall 2015, andhis runway debut will take placein February in Milan. Previously,the label had been showing forseveral years in New York.Serafini’s predecessor, NatalieRatabesi, was tapped in October2012, but she left her post lastJune. When Ratabesi joinedthe brand, it marked the firsttime Alberta Ferretti had delegatedthe entire direction ofPhilosophy to another designer,meaning to develop the label inan independent way and so differentiateit from the signaturecollection. The Philosophy linewas launched in 1984.The strategy has seemed towork, in a sense. In May, duringa conference call with analysts todiscuss the group’s financial resultsfrom the first three monthsof the year, managing director andchief financial officer MarcelloTassinari spoke of Philosophy’spoor performance but touted thegrowth of the Alberta Ferretti collectionand Moschino followingthe arrival of its new creative director,Jeremy Scott. At the time,Tassinari noted that Philosophy’sperformance “was negative comparedwith the other brands.”Still, overall, Aeffe has seensome struggles in recent years,although in the six months endedJune 30, the Italian fashion groupposted a net profit of 150,000euros, or $205,500, comparedwith a loss of 3.7 million euros, or$4.84 million, in the same periodlast year. Sales were 121.1 millioneuros, or $166 million, down 1.5percent compared with the sameperiod the previous year.The ready-to-wear divisionshowed a 3 percent drop, to 94.8million euros, or $130 million,in sales, while sales of the footwearand leather goods divisionincreased by 12 percent, to 37.7million euros, or $51.6 million.Aeffe controls the AlbertaFerretti, Moschino and Pollinibrands and produces and distributescollections for labelsincluding Emanuel Ungaro, designedby Fausto Puglisi, andCédric Charlier.Prada Buys Tannery to Further Control SuppliersBy ALESSANDRA TURRAMILAN — Prada is reachingacross borders to make deals.The Italian group has acquiredhistoric French tanneryTannerie Mégisserie Hervy, furtherramping up the race forluxury firms to acquire their vitaldownstream suppliers. Rivalgroups LVMH Moët HennessyLouis Vuitton, Chanel Inc. andKering have made similar acquisitionsover the last 18 months.Located in Isle, some 243miles south of Paris, the factory,founded in 1936 and acquired in1986 by Michel Hervy, specializesin the tanning of lambskin andplongé leather. Due to financialdifficulties, the tannery wentout of business in summer 2013.According to Prada, a majority ofTannerie Mégisserie Hervy’s 40employees will stay on and thefactory will be renovated.“It’s a high-quality tannery witha great tradition,” said Prada Groupchief executive officer PatrizioBertelli. “We are also grateful to theFrench ministry of economy, financeand industry, which enabled us tocomplete this operation.”Prada acquired the company,which will be renamed TannerieLimoges SAS, in collaboration withthe Tuscan Conceria Superior SpA,a longtime industrial partner of theMilanese fashion firm.“We are glad that Prada madethis acquisition with a Tuscancompany, as it is confirmationthat fashion houses understandthe importance of relying on thefactories operating in our area,which excel in this segment,”said Michele Matteolli, presidentof the Tannery Association ofSanta Croce. “The big thing hereFrench tannery Tannerie Mégisserie Hervy.is not just that Prada acquired aFrench factory, but also that thiswill be managed by Italians.”Securing raw materials — particularlyexotic skins and watchcomponents — has emerged as akey strategic thrust for Europe’slargest luxury goods players.“I think the fact that fashionhouses are creating vertical operations,investing to guarantee thehighest quality for their businesses,won’t affect their former suppliers,”said Matteolli, explainingthat the leather industry is muchInside the historic tannery.more fragmented than other sectors,and so most firms do not relyon a single client. “Even big fashioncompanies don’t make hugeorders with individual suppliersbecause they look for exclusive,very particular products.”“I believe that synergies, acquisitionsand joint ventures arevital and they reflect a will to grow.Prada’s acquisition of historicTannerie Mégisserie Hervy demonstratesthat luxury labels finallyrealized how the entire supplychain is important — and in additionPrada has been a pioneer inthe production of ovine leathergoods since the Eighties,” saidGiuliano Russo, ceo of Naplesbasedhigh-end tannery Russo diCasandrino. “The new society createdwith the Conceria Superior, aleader in the production of bovineleather, represents a consolidationof a longtime commercial relationshipand I’m sure this will be awinning partnership.”Increasingly, companies likePrada can satisfy market demandfor exclusivityby bringing the upstreamsupply chainin-house as well.“In this way, luxurycompanies cannot only differentiatetheir offering, but theycan also maintainstrict control on theorigin and quality ofthe raw materials theybuy,” Matteolli said.The acquisitionmight also supportthe further developmentof Prada’sleather goods division, which hasbeen challenged of late. In thesix months ending July 31, Pradareported a 5 percent decrease innet sales of leather goods to 974.9million euros, or $1.31 billionat average exchange, comparedwith 1.02 billion euros, or $1.37billion, in the same period of2013. The company connected theloss with the reduced number oftravelers in traditional shoppingdestinations across Europe andthe Far East.THE BRIEFING BOXIN TODAY’S WWDLiya Kebede andFrancisco Costa at theCFDA New Members party.For more, see WWD.com.On Wednesday, Gap Inc. let out a bombshell — that GlennMurphy was leaving in February and passing the baton toArt Peck. PAGE 1ON WWD.COMWWD.COMSears Holdings Corp. and J.C. Penney Co. Inc. each saw stocksell-offs in Wednesday’s trading session for different reasons,and their futures right now couldn’t be more divergent. PAGE 1After establishing a strong footprint in Brazil’s hair-caremarket, L’Oréal is betting that demand for skin care andmakeup will expand its business there. PAGE 6With its new activewear collection, 930-door retail chainMaurices says it can take on the discount giants. PAGE 6Louis Vuitton is planning to present a long lost, unrealizedproject of Pierre Paulin and Herman Miller, WWD haslearned. PAGE 7First Lady Michelle Obama brought together big-namedesigners and 150 students Wednesday in an all-day designextravaganza. PAGE 8Opening with soft colors, creams and beiges in relaxed andplayful silhouettes, the Wills Lifestyle India Fashion Week easedinto the first day of shows on Wednesday. PAGE 8Actor and Bulgari ambassador Luke Evans talks entertainingaudiences — from appearing in stage musicals to featuring in awide range of film roles. PAGE MW2When Tommy Hilfiger said “business is good” when talkingabout growth in India, he wasn’t exaggerating. PAGE MW4Man of the Week: Ben Affleck may play an unemployed writerin the country’s number-one movie, “Gone Girl,” but the actorcleans up well on the red carpet. PAGE MW4FASHION SCOOP: Liya Kebede and Francisco Costa attendedTuesday’s CFDA New Members party, which took place inKenneth Cole’s Sutton Place digs. For more, see WWD.com.FOLLOW US ON SOCIAL MEDIA@ WWD.com/socialTO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS ISFIRSTNAME_LASTNAME@FAIRCHILDFASHION.COM, USING THE INDIVIDUAL’S NAME.WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC.COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.VOLUME 208, NO. 74. THURSDAY, OCTOBER 9, 2014. WWD (ISSN 0149-5380) is published daily (except Saturdays, Sundaysand holidays, with one additional issue in March, April, May, June, August, October, November and December, and twoadditional issues in February and September) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC.PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Fl, Los Angeles, CA 90025. Periodicals postage paid at Los Angeles, CA,and at additional mailing offices. 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4 WWD THURSDAY, OCTOBER 9, 2014Sears and Penney’s: Two Differ{Continued from page one}wrongs from the Ron Johnsonperiod, when billions in lostrevenues were logged. Johnsonwas brought in as ceo by activistinvestor William Ackman ofPershing Square Capital to replaceUllman to shake thingsup. The good news at Penney’sis that company operations andlosses racked up during theAckman-Johnson era seem tohave stabilized.SEARS HOLDINGS CORP.Sears observers and investorswere unsettled Wednesday followingreports that insurerswere curtailing their exposureto the troubled retailer by pullingback on future orders byvendors to the mass chain. Thatalso caused a concern that vendorsmight elect to stop shipmentof orders for January.Credit analysts weren’t asconcerned as investors. Sourcessaid insurers — they providecredit insurance to vendors sothey get paid in case the retailercan’t make payment — such as’’Coface SA and Euler HermesGroup have been “reducing exposurefor almost a year andhaven’t written new coverage”for a time period longer thanthat. Vendors, either to WWDor to credit analysts, said theirNovember and December shipmentsare being made. Manywho are shipping are doing so asa “business” decision to supportthe retailer, not as a “credit decision.”Given the consolidation atretail the last few years, vendorsmight not have much choice ifthey want to stay in business. Formany, there’s not many optionsleft on where to sell, if not Sears.Factors are inconsequential,one credit source said. That’s becauseof all the vendors who sellto Sears, “less than 3 percent ofthe company’s gross inventoryis factored,” said one industrysource familiar with Sears’ operations.One factor reachedWednesday said he’s still supportinghis “existing clients.”This source said there’s beensome debate among the factoringcommunity over whether newbusiness should be undertaken.That’s because the real indicatorof whether to approveJanuary shipments can’t bemade until early November,when Sears is expected to completeits rights offering, a movethat should raise $380 millionfor its coffers.One credit analyst said, “Ifthe rights offering is successful,they buy themselves anotherquarter or two of liquidity.”Another credit analystadded: “The $400 million loanto Sears from ESL created moreconcern, not less. It needs tobe paid back in November, soit’s just a short-term fix. Searsneeds to get its recapitalizationdone, and I think it needs to getthat done sooner than later.”And while credit executives’’were asked whether the latestrumble that spooked investorscould push Sears to a bankruptcyfiling, most said they didn’tthink that would happen.“Sophisticated credit executiveswon’t be [alarmed], unlessthe rights offering fails,” one individualsaid.A Sears spokesman attemptedLower gas prices will make the typicalJ.C. Penney customer feel pretty goodabout his income.— WALTER LOEBto negate investor concerns, notingthat Sears will have generatedup to $1.45 billion in liquidityin fiscal 2014 with its manyfinancial moves this year, includingthe $500 million dividendSears received from its spin-offof Lands’ End, proceeds of $165million from the sale of real estateassets and the fact that it has“no significant term debt maturitiesuntil late in 2018.”The spokesman added thatits book value for its “substantiallyunencumbered” real estateon its financial statementsis about $5 billion, and that $6.5billion in inventory is largely“already paid for.” He addedthat Sears continues to meet itsobligations, and has the financialresources to deal directorywith its vendors. He also notedthat insurers have “never had topay a claim to a vendor” tied toSears’ business.But the caveat is still Sears’chief financial officer RobSchriesheim’s reaffirmation atthe beginning of this month ofan earlier statement, that “overthe next six to 12 months, it intendsto evaluate its capitalstructure” and could take furtheractions as needed. Thatsuggests that all the shifting ofassets to build up to $1.45 billionin liquidity may not be enoughfor the ailing retailer.J.C. PENNEY CO. INC.At an investors’ meetingWednesday, much of the conversationon Penney’s centered onthe stabilization of the businessand market-share opportunities,as outlined by Ullman andhis top lieutenants. Executiveshave set a goal of $1.2 billionin earnings before interest,taxes, depreciation and amortizationin 2017, and see overthe next three years a $1 billiongrowth opportunity in centercore, a $750 million opportunityin home and an $800 millionopportunity in omnichannelgrowth. Penney’s now seescomp-store sales this quarter inthe low-single-digit range, versusearlier midsingle-digit guidance.For fiscal 2014, Penney’sguidance stays unchanged atmidsingle-digit comparablestoresales growth and positivefree cash flow, suggestinga fourth quarter that should bebetter than the third quarter.Ullman’s challenges are togenerate enough sales growthto get back in the black, capturemarket share in categories whereit lagged the competition and sustainprevailing perceptions thatit’s climbing back and getting relevantagain to middle America.“When they announced thefact that the third quarter wasSecond Quarter LossThough both stocks took hits Wednesday,Sears and J.C. Penney seem headed indifferent directions.$573Mversus $194million a year agogoing to be lousy, the wholething fell apart and the stocktanked,” said analyst and consultantWalter Loeb. “But thefourth quarter is going to be verystrong. Lower gas prices willmake the typical J.C. Penneycustomer feel pretty good abouthis income.” Loeb also said hefelt Penney’s execs were conservativein their estimates on salesgrowth that they can achievein center core, home and omnichannel.“I see a strong futurefor J.C. Penney as a middlepricedretailer. I don’t see themgoing away and there is no massivestore closing coming.”Though center core generateshigher productivity, marginand operating profit thanwomen’s apparel, “We have seendeeper declines in center corethan apparel. That’s very coun-Penney’s Relaunching JF SportswearWOMEN’S ACCESSORIES andhome may be seen as the primarygrowth drivers for J.C. Penney Co.Inc. over the next three years, butthe retailer is also pushing hard inmen’s wear.Why wouldn’t it? The categorycurrently captures nearly 25 percentof the company’s overall sales,a number that represents 4.4 percentof overall market share and ranksthe retailer as the fourth-largestseller of men’s wear in the country,according to John Tighe, generalmerchandise manager of men’s wearfor Penney’s. “The men’s business isone of the best-performing areas inthe store,” he said. “It held up duringthe transition, and we’re gainingshare and have great traction.”This fall, Penney’s is hoping tocapitalize on that strength by relaunchingsportswear under the JFJ. Ferrar label. The private brand,which made its debut at the companyin 1998, is targeted at the Millennialcustomer who seeks a modern fit insuit separates and furnishings.“Younger guys are dressing up,and we have a jewel in JF,” saidTighe. Penney’s offers two fits insuits: slim and superslim, many ofwhich are offered in fabrics withstretch qualities, peak lapels andother details. Suits retail for $129.99but are often promoted for an outthe-doorprice of around $100.“They really resonate with youngerguys,” he said, adding that the averageage of the JF customer is 34.“It’s quietly been a success story.”To capitalize on this success,Penney’s is rolling out a selectionof sportswear under the JF labelto 500 stores this month. “It seemslike a natural extension to bring insportswear,” Tighe said. He said theretailer had offered more casualapparel under the label for severalyears but added that it “took a holiday”during the troubled tenure ofthe last management team, led byRon Johnson, who slashed many ofPenney’s private labels in his ill-fatedattempt to reinvent the department-storechain.This time around, T-shirts, knits,wovens, jeans and jackets areamong the classifications that willbe offered. Prices will include knitsfor $12.99 to $19.99; jeans for lessthan $30, and leatherlike jackets forless than $100. JF sportswear is designedand sourced by the retailer’sin-house team and seen as beingcomplementary to the Claiborneand Van Heusen labels, whichappeal to an older customer.“When the younger guy isn’twearing a suit, he mixes andmatches brands and will wearLevi’s jeans with a Nike hoodie[or] jeans from St. John’sBay or Arizona,” Tighe said.“But JF is the more refined,stepping-out brand.”This fall and holiday, JFsportswear will be featured indirect-marketing pieces, sometelevision ads and in e-mailblasts, Tighe said.The plan is to “make sure weget our legs under us” beforerolling the sportswear out toall 1,065 stores, he added. Thisyoung consumer, he acknowledged,is among the “most fickle,”and “we want to make surewhat we roll out is successful.”— JEAN E. PALMIERIA JF Sportswear look.


ent Futures$172Mversus $586million a year agoterintuitive,” said Liz Sweney,chief merchant and executivevice president. “We lag inshare against all our moderatecompetitors.”However, Sephora is generatingdouble-digit comp-storeincreases, and will expand toadditional Penney’s locationsin smaller markets. At a typicalPenney’s store, Sephora’’represents a “high-single-digit”percent of the total storevolume, and at smaller stores,the penetration is higher onaverage. Sweney said footwearis “a major, major growth category,”but noted that it has a“very low share compared tocompetitors.” Women’s shoeshave been vastly underspaced,and a new format, seen in therecently opened Brooklynstore, gives 30 percent morespace to women’s, men’s shoesin their own area, a women’sfootwear clearance area andan expanded athletic and juniorbusiness.Siri Dougherty, general merchandisemanager of women’swear, said women’s apparelrepresents more than 25 percentof overall company sales,and two-thirds of that businesscomes from private brands,which afford the retailer 300 to400 higher gross margin thannational brands. Among themost popular are Worthingtonfor career apparel, A.N.A.for the modern customer andXersion for activewear.Ullman also hinted atPenney’s getting deeper intofast fashion, stating “fast fashionis here to stay. The speedis accelerating.” Penney’ssells MNG by Mango in almost600 locations, which Ullmancharacterized as “fast fashionat a price.”John Tighe, gmm of men’s,said private brands are importantto the retailer’s malecustomers as well, and represent50 percent of the overallmen’s business. Offering avariety of private brands forevery category of businessallows men — whom he characterizedas “hunters, notgatherers” — to fulfill theirshopping needs quickly. Hesingled out the Foundry Big& Tall business as a particularstrength, saying Penney’shas the number-two marketshare in that business.Mike Rodgers, chief customerofficer, said the omnichannelbusiness is expectedto represent an additional$800 million in sales with a15 percent compounded annualgrowth rate over thenext three years. For the firsthalf of this year, he said, saleswere up 21 percent and trafficwas up 10 percent. This isin sharp contrast to the$500 million in sales thatevaporated when formermanagement separatedthe Internet and storebusinesses.Looking ahead, Rodgerssaid Penney’s will work toexpand its buy-online-shipto-store-or-homeoption andwork on same-day pickup anddelivery. Enhancing the mobileapp is also a priority forthe future, as 50 percent of allretail transactions by 2015 areexpected to have a “digital’’component,” he said.Ed Record, chief financialofficer, said Penney’s comparable-storesales through thespring are running 6.6 percentahead of last year andthe company has posted threeconsecutive quarters of positivesales growth, which willallow it to “invest in growthinitiatives.” Long-term, the cfoprojected that by 2017, saleswill be $14.5 billion, grossmargin will be $5.3 billion andEBITDA will be $1.2 billion.“We’ve stabilized the financialposition. We are back inkey items, and definitely backin the consumer mind-set,”Ullman told the analysts. Healso said private brands havebeen restored and enhanced,a number of brands and merchandisethat “clearly didn’tresonate” were dropped, andthat 505 home departmentshave been remerchandised.“However, there are still enormouschallenges, not the leastof which is getting consumersto spend more. “Despitethe fact consumer confidenceis increasing, spending isstill flat. It’s not clear whenit will change,” Ullman said.“We count half of America’sfamilies as our customers. Weneed to increase the share ofwallet they spend with us.”— WITH CONTRIBUTIONSFROM J.E.P.We are back in key items, and definitelyback in the consumer mind-set.— MYRON ULLMAN, J.C. PENNEY CO. INC.{Continued from page one}signing franchise agreements around the world;brought Athleta, Intermix and Piperlime into theportfolio as growth vehicles, and improved the supplychain for speed and better margins.“He was wise enough to get out. There is nothingleft to cut,” said one retail source.There’s a prevailing sense that Murphy, whileaccomplishing a lot, is leavingwithout completing theassignment — restoring theprestige of the brand andits legacy for trend-settingdesign and marketing. In addition,as Murphy acknowledgedWednesday on a briefconference call with analysts,the first two thirds ofthe year, “I’d like to think Icould have done better.”Art PeckGap Inc.’s performancelast month was weak, withsales flat versus the yearago’s minus 3 percent. By division, Gap was down3 percent, Banana Republic was up 2 percent andOld Navy was up 1 percent for September 2014.Gap stock closed up 1.7 percent to $41.90 for theday, but fell 7.6 percent to $38.72 in after-hourstrading following the news about Murphy’s departureand the company’s flat September comps.Gap said it was a personal decision by Murphyto leave and cited an impressive six-year compoundedannual growth rate on earnings per shareof 17 percent and a total shareholder return ofmore than 160 percent.“Today, Gap Inc. is a formidable global fashionretailer with a strong foundation in place for longtermgrowth, therefore making this an appropriateinflection point for me to pass the baton to a leaderwho will take our portfolio of brands to even greaterheights,” Murphy said in a statement. “With consumerexpectations rapidly evolving, Art is the rightleader at the right time to build on our success andensure a compelling experience for our customersacross both our physical and digital channels.”With the appointment of Peck, who’s 59, Gaphas an insider who worked closely for years withMurphy and knows the company inside out, makingfor a smooth transition. The downside isthat while Peck led the North American divisionfor Gap brand in 2011 and 2012, he’s notconsidered a merchant and Gap in recentyears has been plagued by merchandise issues.Peck has held a variety of brand, strategyand operational roles since joining the companyin 2005 and has most recently been workingon omnichannel and digital strategies, andguiding the emerging Athleta, Intermix andPiperlime brands.Previously, he headed the outlet business forGap and Banana Republic, and earlier he ledglobal strategy and launched the first franchisemarkets. Prior to joining Gap Inc., he spentmore than 20 years at The Boston ConsultingGroup, where he rose to senior partner, with afocus on consumer technology, media and entertainment;consumer products, and retail.Demonstrating a concern for the product,Peck said, “Our success will be based upon presentingbrand-right, emotional product to ourcustomers, both in stores and online. Buildingupon the foundation Glenn has established, wewill be focused on continuing to execute ourstrategy to drive long-term shareholder value.”Gap Inc. also said that Bob Fisher, who has a 35-year history with the company founded by his parents,will become non-executive chairman, and Peckwill join the board. The Fisher family is Gap’s largestshareholder, owning 26.4 percent of the stock.“I consider this to actually be a really good day,”Murphy said in the conference call Wednesday. “Iam able to pass the baton in the new year to someoneI have worked side by side with for close toeight years now. The board has done a magnificentjob planning for succession....Like any responsibleboard, we started thinking about the future, as welooked to 2020....Philosophically, anyone with theirhandprints on the long-range plan also needs to bethere for the execution. I am just not able to makea personal commitment to make this next round oflong-range planning and strategy. The board wouldlike me to stay and that flatters me.”Murphy said Peck has “overexceeded my expectationsand the board’s expectations on everysingle assignment I have given him” and that “thisis a future ceo that knows the culture.”Peck said Gap Inc. is positioned to win, citingthe company’s “incredible brands and incrediblyWWD THURSDAY, OCTOBER 9, 2014 5WWD.COMPeck to Succeed Murphy at Gaptalented team.” He cited continued global growth,continuing to “embrace and invest” in the digitalstrategy and furthering improvements in the supplychain as priorities. He also said he “steadfastlybelieves in stores and steadfastly believesin digital” as the future for the company.One industry observer said that while Murphygets credit for turning around Old Navy, he was focusedmore on cutting coststhan innovation.“You’re seeing an evolutionwhere retailers are startingto recognize that their futuretalent is housed in theirdigital arms, not necessarilytheir classic brick-and-mortararms,” said Leslie Berglass,ceo of executive search firmBerglass + Associates.Berglass pointed toNeiman Marcus Group,where John Koryl was presidentof the direct business,but then took on the same responsibility for thenamesake chain’s stores and online operations.“It was unexpected,” said Janet Kloppenburg,analyst at JJK Research, of Murphy’s departure.“I saw Glenn in July and we talked about longtermstrategies. I think he has done a really greatjob in transforming the company. And he did setsome goals for the longer term about reachinghigher operating margins, approaching those ofH&M and Zara. I think we were all optimistic thathe [put] plans in place to do that.”Kloppenburg pointed to the company’s effortsto shorten lead times and create a sourcing structurewith a quicker response time.Elaine Hughes, president of executive searchfirm E.A. Hughes & Co., noted that “Glenn was not aconventional choice for the ceo role and came underfire from Wall Street for not showing results fastenough. However, his strategic approach to revivingthe business’ profitability proved Wall Street wrong.”Hughes said Peck’s recent roles at Gap have“provided him with the experience to navigatethrough the complexity of the hyperglobal environmentof tech-induced consumerism. Product isimportant, but the environment and mechanismStock priceSalesGlenn MurphyNet IncomeThe Murphy Years2013 2007 ChangeGross MarginOperating MarginCash dividends paidRetail square footage$41.90$16,148$1,28039%13.3%$32137.2$14.67$15,943$77835.4%7.4%$26538.9185.6%1.3%64.5%10.2%79.7%21.1%-4.4%FIGURES ARE FOR FISCAL YEARS ENDING IN JANUARY OF FOLLOWING YEAR, EXCEPTFOR STOCK PRICE, WHICH COMPARES ADJUSTED SHARE PRICE ON DAY OF MURPHY’SAPPOINTMENT AT GAP, JULY 26, 2007, WITH CLOSING PRICE ON WEDNESDAY. DOLLARAND SQUARE FOOTAGE FIGURES ARE IN MILLIONS, EXCEPT FOR STOCK PRICE.to satisfy the customer are critical. Art gets that.”“In his last two assignments — Shoppers DrugMart and now Gap — Glenn’s done extremely wellfor shareholders and has been well compensatedfor generating exceptional returns,” observedAntony Karabus, ceo of HRC Advisory unit of HilcoGlobal. “He’s absolutely one of the best retail ceo’sI’ve ever known and he’s leaving the company in avery strong position and probably worked directlywith the board to get the right successor in place.You look at the stock price and profitability versuswhat he inherited and it says a lot. You look at buyingAthleta and what’s been done with it, of internationalgrowth and the radical growth of distributionpoints, what he’s done with real estate andthe cost structure, the investments in design andomnichannel. He came into apparel in 2007 andpeople wonder how a Canadian drug and groceryretailer could pull this off, but he’s done a terrificjob. The short-term problems at Gap division don’treally make a dent in that.”Murphy was not available to comment.— WITH CONTRIBUTIONS FROMEVAN CLARK AND ARNOLD J. KARR


6 WWD THURSDAY, OCTOBER 9, 2014Maurices Gets Into ActivewearBy DAVID MOINA style fromMaurice’s.WITH ITS NEW activewear collection,Maurices says it can take on the discountgiants.Maurices, with 930 stores in smalltowns and midsize cities where discounterstend to dominate, launched Mauricesin Motion activewear last month. “Targetand Wal-Mart — they don’t have the qualityMaurices in Motion has,” George Goldfarb,the president of Maurices, claimed.“Penney’s has lots of basics, but I haven’tseen the level of fashion we are delivering.”The Duluth, Minn.-based chain cateringto women in the twenty- to thirtysomethingage range, is growing fast, ata rate of 50 to 55 stores annually. It expectsto cap out at well over 1,200 storesin the U.S., and at least 35 in Canada.Through the recession, Maurices, a divisionof Ascena Retail Group Inc., openedmore than 250 stores and yielded 65 percentsales growth. In the last quarter,Maurices’ sales rose 4.8 percent to $227.1million, and increased 1 percent on acomp basis.But Maurices sees its activewearcollection as gaining momentum. “Wesoft-launched Maurices in Motion inAugust and will full launch in January,”Goldfarb said, adding the retailer willstep up marketing then with partnershipswith fitness influencers. “It’s a hotcategory. This market is outstripping thewomen’s apparel market from a growthperspective.” By January, the collectionwill be available at all stores in thechain, from the current 600. It’s alreadybeing sold online.While the collection does supplantsome casual sportswear sales, overall,it’s resulting in sales gains. “We see incrementalityhere,” Goldfarb said. “Wehave not lost any jeans business throughthis. That’s one way to look at it. At a lotof players, jeans are suffering. We areable to have a strong bottoms business.”Goldfarb said the collection standsout because of its use of performancefabrics; its fit, which makes it a good opportunityfor plus sizes, and its prices,with bottoms starting at $39 and no productmore than $69.“We are particularly proud Maurices inMotion is in sizes 0 to 24,” said Goldfarb. “Isee very few retailers offering active andath-leisure to plus-size girls.”Asked what’s selling best forMaurices in Motion, Goldfarb repliedbottoms, which he said come infour “flattering” styles: capri, legging,straight and boot cut. “We see womenwearing them to the gym, the coffeeshop, the movies. It’s versatility.”EVERY THURSDAY IN WWDTAILORED FOR THE MEN’S WEAREXECUTIVES WHO MATTERFOR MORE INFORMATION, CONTACT:BRETT MITCHELL, EXECUTIVE DIRECTOR, WWDBRETT_MITCHELL@FAIRCHILDFASHION.COM212.630.4694Maurice’s operates930 stores.L’Oréal Targets a Booming BrazilBy ADRIANA BRASILIERORIO DE JANEIRO — After establishinga strong footprint in Brazil’s hair caremarket, L’Oréal is betting that boomingdemand for skin care and makeup willhelp expand its business and accelerategrowth in a country where customersspend more on cosmetics per capitathan in any other BRIC nation.L’Oréal, which gets about 4 percentof its total revenue from Brazil, is workingto add at least 30 million customersin Latin America’s largest economy by2020, taking advantage of Brazilians’love of beauty and innovation.“We are changing our businessmodel here to gain market sharein categories where we are not in astrong leadership position yet,’’ DidierTisserand, president of L’Oréal Brazil,said at a conference on Oct. 5. “Brazilis a key market for us because of thegrowth potential we see here across allconsumer classes.’’Brazil’s beauty industry is thefourth-largest in the world after U.S.,Japan and China, and it’s the fastestgrowing,expanding at 12 percent onaverage in 2008-13. Supporting thisgrowth are nearly 40 million consumerswho have emerged into a new middleclass over the past 10 years, becomingavid buyers of everything from deodorantto antiwrinkle cream. Beautysales reached 34 billion Brazilian reals($13.7 billion at current exchange) inBrazil last year, an increase of 11.7 percentfrom 2012. This year, as economicgrowth is forecast to slow to near zero,Brazil’s beauty market will likely grow7 to 8 percent, Tisserand estimates.Due to the expected slowdown,the global beauty industry leader’ssales are also likely to suffer in theshort term as consumer confidencedrops and persistent inflation eatsinto disposable income to buy cosmetics.L’Oréal’s sales in Brazil have beengrowing at 13 percent on average since2008, but growth was “a high singledigit’’ in the first half, according toTisserand. L’Oréal is the fourth-largestbeauty company in Brazil, with a marketshare of 7 percent behind local cosmeticsgroups Natura and O Boticário,and Unilever, respectively. L’Oréal had2.2 billion reals ($892 million) of revenuein Brazil last year and is investing240 million reals ($97 million) this yearin its operations.The company employs 2,700 peoplein its two factories, research and innovationcenter, and two distributioncenters in Brazil. L’Oréal will move itsheadquarters in Rio de Janeiro to anew building in the city’s port area bythe end of 2016.L’Oréal is already a leader in Brazil’stop beauty category: hair. It’s a challengingmarket, with demanding consumerswho want to straighten and control12%ANNUAL INCREASE IN BRAZIL’S BEAUTYMARKET THE LAST FIVE YEARS.their locks in Brazil’s humid climate,and who color their hair more than inany other country. Brazilian women use4.8 products in their hair-care routine,more than any other in the world; hairlength is the longest on average, and alleight hair types are present in Brazil,from the finest European types to thecurliest black hair, an influence of morethan four million Africans who werebrought to Brazil between 1550 and 1850to work as slaves.“This diversity represents an incredibleopportunity for us to develop productsthat can be exported to other markets,’’said Maya Colombani, marketing developmentdirector at L’Oréal in Brazil.As it continues to reinforce its position,L’Oréal announced last month theacquisition of hair-color maker NielyCosmeticos, Brazil’s largest independenthair coloration and hair-care company,with revenue of 405 million reals($164 million) last year. L’Oréal didn’tdisclose the value of the acquisition butsaid Niely’s high penetration among theemerging middle class would complementthe French group’s portfolio in itsconsumer products division.A key challenge is to improveL’Oréal’s distribution channels. InBrazil, sales of beauty products arestill mostly done through direct sales,where L’Oréal doesn’t operate. Thatsegment has 42 percent of the totalbeauty market, followed by the massmarket, with 36 percent. Monobrandedretailers account for 11 percent, followedby dermo-cosmetics with 4.4 percent.Direct sales are underperformingall other segments, while dermo-cosmetics,where L’Oréal is the leader inBrazil, are growing fastest.“We decided to invest to open newdistribution channels, such as kiosks atshopping malls, and it’s been a huge successwith Maybelline,’’ said Tisserand.The candy-store look of the kiosks haslured consumers to buy lipstick and mascara,and accelerated sales since it openedits first kiosk at a shopping mall 18 monthsago. Now there are 62 kiosks, and 100 morein the works for the next six months.The demand for natural productsis also growing in Brazil and L’Oréalhopes that the Body Shop will tap thatmarket. L’Oréal in January bought 51percent of the Body Store, a local chainthat imitates the natural cosmeticschain. The French group will transformall 125 Body Store shops into BodyShop stores by the end of next year.


FASHION SCOOPSDESIGN DUO: Louis Vuitton is planningto present Pierre Paulin and HermanMiller’s long-lost, unrealized project,which the French designer andAmerican furniture manufacturerthought up in 1972, WWD has learned.Conceived as a satellite exhibitionfor the Miami Design District, theinstallation is scheduled for displayA mockup of the Pierre Paulin and Herman Miller project.from Dec. 2 to Dec. 7.Paulin shot to stardom in theFifties and Sixties, most notablywith his innovative seating options,including the Mushroom chair and theRibbon chair.The exhibition coincides withthe publication of Nadine Descendre’s“Pierre Paulin: l’homme etl’oeuvre,” a 240-page tome onPaulin’s life and work that ispublished by Albin Michel.Vuitton continues its traditionof spreading the word aboutFrance’s pioneering figuresin architecture and design. In2013, the luxury group unveiledCharlotte Perriand’s “La maisonau bord de l’eau,” or “The houseby the shore,” a U-shaped beachhouse conceived in 1934 yetnever realized until then.— PAULINA SYMDZKENEWBIES UNITE: Tuesday’s CFDANew Members party took placeat a location that was familiarto most. “I know so manypeople in this building,” VeraWang said as she walked intoKenneth Cole’s Sutton Place digs,where the event took place.“Bill Blass lived here, CarolyneRoehm lived here, and myfriends the Perrys do, too.”Wang wasn’t alone. Lisa Perryhosted last year’s event a fewfloors up in her apartment. Itcreated a sense of déjà vu formany. “I drove up and said,‘Weren’t we here before?’ ”CFDA chief executive officerSteven Kolb noted. The crowd thisyear included Francisco Costa,Italo Zucchelli, Ashley Olsen, AlbertusSwanepoel, Cynthia Rowley, YeohleeTeng and Nanette Lepore. As a point ofdifference, John Forte, Sophie Hiller andBen Taylor performed songs this year.The newcomers were impressedby the environs. “Cute view,” saidnew member Johnny Talbot, who hailsfrom Nashville, of Munich-basedTalbot Runhof.“It’s a wonderful place towelcome the 30 new members,”CFDA president Diane von Furstenbergnoted. Despite appearances, noteveryone can get into the CFDA,the designer said, adding, “Eventhough there are 30 [newmembers], we are quite strict.Quite a few did not make it.”As for Cole, he lauded theevolution of the organization,and he would know. “Ihave been a card-carryingmember for 18 years,” hesaid. — MARC KARIMZADEHTHE DRESSMAKER’S DRESSMAKER: SophieTheallet’s designs are set to maketheir cinematic debut next year. Thedesigner is creating two couturegowns to be worn by Kate Winslet inthe film “The Dressmaker,” whichwill begin filming in rural Victoria,Australia, next month. Based onAshleyOlsen andDiane vonFurstenbergPierre Paulin on his way to meetHerman Miller in the Seventies.CFDA PHOTO BY THOMAS IANNACCONE; GETTY BY DREW ALTIZERRosalie Ham’s novel about an Australiandressmaker who trains under MadeleineVionnet in Paris in the 1950s and thenreturns to the outback to transform thewomen of the town with her designs,the film is directed by Jocelyn Moorhouse(“Proof,” “How to Make an AmericanQuilt”). Moorhouse was introduced toTheallet by their friend Rupert Everett. Ina bit of a meta moment, just as Winslet’sTilly trains under Vionnet, Thealletspent 10 years with Azzedine Alaïa beforesetting up her own businessin New York.— JESSICA IREDALEDUFFY’S HONOR: Those whoknow Robert Duffy are awareof his longtime affinity forProvincetown. This Saturday, the MarcJacobs International president willbe honored by the Provincetown ArtAssociation & Museum at the PAAM 100benefit gala. Themed “Looking Back,Moving Forward,” Duffy is receiving theMoving Forward Award for his supportof and “significant gifts” to the PAAMCollection, the naming of the RobertCharles and Lorraine Bauer DuffyGallery and his contributions to MJI.“I am happy to be part of such animportant organization that has beengoing strong for 100 years,” Duffysaid. “The number of major artiststhat have studied in Provincetownand this museum has shown andsupported says it all: Provincetownis known the world over. Here’s to100 more amazing years.”— M.K.MAKEOVER MOMENT: Burberry’sSan Francisco flagship had its bigreveal on Tuesday evening aftera long renovation, eliciting oh’sand ah’s from a crowd consistingmostly of socialites. David Bowiebelted out “Golden Years” ashosts Sloan and Roger Barnettand their guests — Vanessa Getty,Kathryn Lasater, Jacqueline and DavidSacks, Katie and Todd Traina, amongthem — filtered into the opulentfour-story space. They ate smokedsalmontea sandwiches and eyed thestore’s new upgrades — a dramaticstaircase, a chic mezzanine salonand a beauty bar — while rackingup fall merch (sales from the partybenefitted the Fine Arts Museum ofSan Francisco). Carol Bonnie and VandyBoudreau could not stop giggling in onecorner. Deciding to drive downtown toFOR MORESCOOPS, SEEWWD.com.For more career opportunities log on to WWDCareers.com.SpacesCOMMERCIALREAL ESTATE33rd-57th St West-All SizesMenswear ShowroomsD. Levy Adams & Co. 212-679-5500WWD THURSDAY, OCTOBER 9, 2014 7WWD.COMthe party together, they discovered, whenUber arrived, they were wearing thesame silver lace Burberry dress. “I lovemy dress,” chortled Bonnie, Champagneflute in hand. “And now I’m seeingdouble.” — DIANE DORRAENS SAEKSGOING IN DEEPER: Tamburi InvestmentPartners purchased an additional 570,749shares of Intercos Wednesday, bringingits total to 2,853,746 shares at the nonbindingoffering price of 3.50 euros to4.50 euros per share, or roughly$4.40 to $5.50 at currentexchange rates. Intercoswill wrap up its road show,which was exclusively open toinstitutional investors today.Italian stock marketregulator Consob approved the cosmeticfirm’s bourse debut on Oct. 1. Foundedin 1972, Intercos, which develops andproduces high-tech, fashion-savvycosmetics for leading internationalbrands, will list on the STAR segmentfor small companies and make itsofficial entrance on the stock exchangenext Wednesday.Intercos founder and presidentDario Ferrari told WWD that he hadtoyed with the idea of an IPO in2006 but, given the poor economicclimate, decided to wait. Overthe past several years, “we tookthe company and brought it to anew level,” Ferrari said, citingheavy investments in globalinfrastructure and productinnovation and noting that itsstock-market listing will allowIntercos to further boost allproduct categories.Intercos currently has officesand production facilities in 15countries.Ferrari added that, in asaturated cosmetics market withrapidly changing distributionmodels, Intercos’ own digitalexpansion and ability to serveFashionFlow Apparel ERP Systems(ERP, MRP, PLM, AR, EDI, Mobile)Cloud-Based All In One SolutionsCustom Setup & Integration Availablewww.fashion-flow.com 212-244-4020PATTERNS, SAMPLES,PRODUCTIONSFull service shop to the trade.Fine fast work. 212-869-2699Vanessa customers from directlyGetty operated sites around theworld had put the companyin a highly competitive position. Inthe future, he said, “we’ll need toconsolidate Brazil,” where Intercos isalready present, and further developproduction capacities in Asia,which the firm entered more thana decade ago. “We had consideredIndia, too, but I would say it’s a littlepremature,” he observed.— CYNTHIA MARTENSMANUFACTURER REPS WANTEDCurrent reps make $100k+. Ourfashion tech and home products sell in7000+stores. If you sell to accessorybuyers, email: reps@theankit.com.Designer WantedEarl jean tops looking for a talenteddesigner w/ women contemporarymarket back ground.Knowledge ofCad is must and as well as knowledgeof Chinese a plus but not mandatory.Please send resumes tojennifer@earljeantop.com(800) 423-3314, or email classified@fairchildfashion.com


8 WWD THURSDAY, OCTOBER 9, 2014First Lady Michelle Obama’s Lesson in FashionBy ROSEMARY FEITELBERGand KRISTI ELLISWASHINGTON — The White House isn’t typicallythe go-to stop for internships, but FirstLady Michelle Obama brought together bignamedesigners and 150 students Wednesdayin an all-day design extravaganza.Operation Fashion, if you will, featuredworkshops, a panel, networking sessionsand a working lunch (a rough reality, nodoubt, for the newbies). Narciso Rodriguez,Thom Browne, Reed Krakoff, PrabalGurung, Diane von Furstenberg, JimmyChoo’s Sandra Choi, Opening Ceremony’sHumberto Leon and Carol Lim, JennaLyons, Lela Rose and Zac Posen wereamong the fashion set who advised thebudding designers and “technologists.”The First Lady was introduced by AnnaWintour, artistic director of Condé Nast andeditor in chief of Vogue, who’s an Obama-iteanyway, given all the millions she raised forPresident Obama’s reelection campaign.Wearing a racerback cobalt dress designedby Fashion Institute of Technologystudent Natalya Koval, who won a designcompetition as part of the event, and JimmyChoo shoes, Obama noted that $350 billionworth of apparel and footwear is sold in theU.S. annually and 1.4 million people workin retail and fashion. Repeatedly stressingthat success requires hard work, she citedhow Spanx founder Sara Blakely now runsa multibillion dollar company with distributionin 50-plus countries. The Chilean-borndesigner Maria Cornejo, another attendee,’’also was singled out for her success.“Fashion is about so much more thanjust a pretty pair of pumps or the perfecthemline. For so many people acrossthe country, it is a calling, it is a career,and it’s a way they feed their families,”cheered Obama who, up until Thursday,had generally steered clear of minglingwith the fashion world apart from wearingdesigner clothes and attending electionfund-raising events with them. “So that’swhy we thought it was important to bringthe industry to the White House, and toshare it with all of you who are coming upin the next generation,” she added.Wednesday’s workshops were meant toshow students all aspects of the industry.Obama told students about the trials andtribulations many designers face. Blakely,for example, worked at Disney World afterObama hosted several designers and 150 students at the White House Wednesday.graduating from college, “buckling peopleinto their seats for the ride,” the First Ladysaid. She followed that up with a job sellingfax machines to an office supply company,while working for two years developingand researching her own design ideas.Investing her entire savings of $5,000 intoher designs, Blakely started to shop themaround and was repeatedly turned downuntil a manager at a factory gave her achance. Fast-forward to Spanx’s globalreach — which clearly stretches to theWhite House as the First Lady exclaimed,“We all wear them…with pride.”Wintour talked about some of the barriersto fashion that she had to knockdown when she first came to the U.S. asYou have to think when is going to be the nexttime I’m going to be invited to the White Housebecause I think about that all the time.various designer clothes that were createdby Parsons alumni and referencedthe school’s history of designing installationsfor the International ContemporaryFurniture Fair and other special eventsusing re-salvaged goods. Once a planwas in motion, Parsons recruited 16 undergraduateand graduate students whospecialize in architecture, interior designand lighting, all of whom signed nondisclosureagreements. A visit to the nonprofitMade for the Arts reaped five shoppingcarts full of discarded books, all of whichwere careful to be about neutral subjectsso as not to be offensive in any way, perorder of the First Lady’s advisers.Later, in need of hundreds of additionalbooks, Parsons faculty, who hadread about how publishers sometimesdiscard books they have printed toomany copies of, appealed to PrincetonArchitectural Press. The company provided400 books, which meant studentswere literally reading about architectureas they folded pages from the books forthe backdrop, pillars, centerpieces, mantelpiecesand other East Room adornments.Rizzoli also donated some books.Before tackling the sizeable quick-turn,students watched a documentary aboutorigami called “Between the Folds.”The futuristic backdrop made from4,000 folded book pages and transparentpodium were specifically designedto complement Obama’s dress by Koval.Another dress designed for the FirstLady by FIT student Chelsea Chen wasPHOTO BY JONAH KOCH’’— MICHELLE OBAMAwell as her first job in America, at NewYork magazine. “It used to be that I wouldcome down here to D.C. and felt that Irepresented an industry that was decidedlyunserious. I was the woman from NewYork in the funny clothes who kept insistingthat fashion mattered,” Wintour said.Obama encouraged the students to talkto the designers, who all participated in displayed on stage during the panel discussion.The up-and-comer was at thesome of the five fashion workshops duringthe day and were seated at 20 tables in the event, as was her mentor Phillip Lim.East Room for the First Lady’s remarks. The First Lady accidentally attributedRodriguez was the catalyst in connectingTeam FLOTUS with Parsons the New tially and then quickly credited Koval.the dress she was wearing to Chen ini-School for Design, according to an executivefamiliar with the negotiating. After Wednesday night for the Celebration ofBefore returning to the White Housethe designer suggested Parsons executive Design cocktail party, Lyons said she wasdean Joel Towers get in touch with the inspired by how the First Lady told theFirst Lady’s office, Towers put together a students they “can do anything and be anything”they want to be. Obama also packet of photographs of Obama wearingremindedthem not to squander this once-in-a-lifetimeopportunity, which resonated with thecrowd. “Afterwards a lot of kids came upand wanted to take selfies. But then theyrealized, ‘Wait, this is my chance to say hi.I don’t think they would have done that ifshe had told them to,” Lyons said. “Shewas warm but also very on-point. You cantell she is a good mother.”The White House’s East Corridor waslined with mannequins showcasing some ofthe many designer dresses Obama has wornover the years — a few of which were accessorizedwith origami pieces made by theParsons team. After loading up a 16-foot truckwith their creations Monday, the studentsBoltBus-ed it to The Beltway on Tuesdaymorning to install their work. While theirevery move required an escort, the Parsonsteam got a backstage view of the WhiteHouse, so to speak, that included brainstormingwith the in-house florist, the occasionalwater break in the butler’s pantry and an impromptustop in the First Lady’s second-flooroffice above the State Room for a snack of apples— “the only food that an aide could find,”according to Alison Mears, dean of the Schoolof Design Strategies. With only two weeks tocomplete the project, Mears was helped byJonsara Ruth, director, MFA Interior Design,and stylist Helen Quinn.After Obama’s remarks Wednesday, vonFurstenberg, Gurung, Lyons, Jason Wu,Tracy Reese and Lafayette 148’s EdwardWilkerson shared some career advice ona panel hosted by “Today” show contributorLilliana Vazquez. Lyons describedwearing sweatpants for her first day as aDonna Karan intern, which was blissfullyspent cleaning the closet designated forarchives, and von Furstenberg recalledhow her 28-year-old self was invited to aGerald Ford-hosted White House dinnershortly after her revolutionary Newsweekcover. While the years that followedweren’t always heaven and roses, vonFurstenberg told the students later, “Hardwork is always fun if you like what you do.And your most infuriating moments willwind up being the best sources and thebest stories when you’re famous.”Afterwards, Obama reminded the studentsto network for internships with thefashion crowd — looking people in theeye and speaking clearly. “Just don’t justsit here, eat the lunch, take a nap and goto the next workshop. Think about howyou’re going to turn this into the nextthing that you do....If you’re not going todo anything with it then give it to somebodyelse, but don’t waste it, OK?” shesaid. “This is really special so make themost of it. It won’t be the last door thatyou have access to, but this door is reallydifferent. You have to think when is goingto be the next time I’m going to be invitedto the White House because I think aboutthat all the time. I tell my kids, ‘Take alook around now. We may never get invitedback here again.’”India Designers Get Down to BusinessBy MAYU SAININEW DELHI — Opening with soft colorsand beiges in relaxed silhouettes, theWills Lifestyle India Fashion Week easedinto the first day of shows on Wednesday.The five-day event, which runs untilSunday at Pragati Maidan here, is gearedto serious business, and designers toldWWD they’re ready to up the ante in termsof orders for both global and local markets.The fashion week, held twice a year andorganized by the Fashion Design Councilof India, will showcase 124 designers.“It’s about two things, isn’t it? Fameand money. Both happen here at fashionweek, and we’ve all been building up regularbuyers over the years, which makesthe event one of anticipation for all of us,”said Nandita, of the Hemant and Nanditaduo who did a strong show Wednesdayusing ikat fabrics.“Our task is changing with [the times],as well,” said Nandita. “Now, we have amix of domestic and international buyers.Earlier, a lot of the retail was in the metrocities of Delhi, Bombay, Bangalore, butnow buyers come from many of the smallercities. We also take our styles to theshows in Paris and New York, so we arecatering [to] a very wide mix of buyers.”She explained that while internationalmarkets prefer a lot of neutral shades witha dash of color, the Indian market was theopposite: awash with color with a dash ofsofter tones.Manish Gupta, who will show onThursday, spoke about how his perceptionshave changed to fit the market. “I’mdoing more gowns now, moving towardmore Western silhouettes. People aremuch more experimental now, and thatallows me more freedom, as well, eventhough the basic look of the brand hasn’tchanged. We are known for our contemporarytextures and embroidery,” he said.Although his prices, which rangefrom 20,000 to 60,000 rupees, or $327.92to $983.76 at current exchange, are stillhigh for the Indian market, he explained,“Indian designers use a lot of embroideryand textured fabrics. It costs more. Unlessyou change the complete look, the workmanshipitself makes it more expensive.”Designers whose collections are warmlyanticipated include Kavita Bhartia, MaliniRamani and Gauri & Nainika on Thursday,Rajesh Pratap Singh and Masaba on Fridayand Wendell Rodricks on Saturday.The exhibition area, which usuallygenerates excitement and business, willinclude not only the designers who areshowing on the runway but also thosewho are not, such as Abraham & Thakore,Krishna Mehta, Rohit Gandhi and RahulKhanna, Manav Gangani and Masaba.The changing mind-set of designers, whoare looking at new ways of growing theirbusinesses, is indicative of this season.Raakesh Agarvwal, a designer who hasbeen experimenting with daring cuts anddrapes and who will show on Saturday,said, “We are going very business-centricnow. It’s always been a lot about creativity,but now I’m ready to combine all of thatwith sheer business sense.”His first flagship is set to open soonin Mumbai, and he is looking to launcha jewelry line, an accessories line anda men’s collection later this year. “All ofthem are showing a lot of promise, and myassociations with e-commerce sites, suchas Jabong and Myntra, are also doing verywell. It means changing some of the pricepoints I [had] been working at earlier —looking at bringing them down, in manycases — but it is worth it,” he said.His collection this time will be differentcreatively, as well — “especially nobling,” he observed.Bling, disliked by many designers andyet an essential part of the runway forthe past few years, may be on a declinethis season. Several designers pointedtoward this changing trend and talkedabout digital prints and patterns becomingmore important.


October 9, 2014Berluti’s wool suitand cotton shirt.Bulgari watch.SLAYINGTHEMSOFTLYLUKE EVANS walks into a Manhattanphoto studio with a bit of a strut in hisstep. He looked very much the part of anaction star. His hair slicked back, darkshades in place, he wore a tight leatherjacket that showed off a muscular build.Think Tom of Finland in designer duds anda Bulgari watch.It was a look in keeping with the toughimage Evans has cultivated in the movies,playing the heavy in the likes of “Clashof the Titans,” “Immortals” and “Fast &Furious 6,” where he went pectoral topectoral against Vin Diesel and Dwayne“The Rock” Johnson (and lost — he was thevillain, after all).On Friday, his new movie, “DraculaUntold,” opens in the U.S., but this time,he’s in the driver’s seat.The movie is already a success— it made $21 million from 25international territories this pastweekend — and, at 35, the Welshactor is emerging as a bona fideaction star of his own, though onewith a background unlike anyaction star before him.Later this year, Evans willreprise his role as Bard theBowman in the latest chapter of{Continued on page MW2}PHOTOS BY RODOLFO MARTINEZ;STYLED BY ALEX BADIA


MW2WWD THURSDAY, OCTOBER 9, 2014Men’s WeekTom Ford’s suit andBurberry London’ssweater, both in wool.GROOMING BY AMY KOMOROWSKI AT CELESTINE AGENCY; FASHION ASSISTANTS: MERCEDES PSL BASS AND KAYANA CORDWELL


Men’s Week WWD THURSDAY, OCTOBER 9, 2014 MW3FOR MORE IMAGES, SEEWWD.com/menswear-news.Marc Jacobs’ wool suitand cashmere turtleneck.Bulgari watch.PHOTOS BY RODOLFO MARTINEZ; STYLED BY ALEX BADIASLAYING THEM SOFTLY{Continued from page MW1}“The Hobbit” and he’s been tapped as thestar of a remake of “The Crow.” Fashionbrands are paying attention, too — duringthe spring men’s shows, he showed upfront row at Calvin Klein in Milan and LouisVuitton in Paris and he was recently nameda Bulgari brand ambassador. For the various“Dracula Untold” premieres, he’s optedfor traditional English tailors like EdwardSexton and Gieves & Hawkes.“I’ve been building up roles for six years.This is my 20th-something movie,” he says.“And they’ve been bigger and bigger and thisyear I’ve got two of the biggest movies of mycareer so far. So, you know it’s all going inthe right direction.”In the photo studio, Evans shows a differentside of himself than the one viewers areaccustomed to in full-throttle genre movies.He waits for a photographer to setup when “Trouble,” a melancholy lovesong from the singer-songwriter RayLaMontagne, comes on. Almost under hisbreath, the actor starts singing to himself.He knows all the words.“It’s a gorgeous song, isn’t it? Blues-y, romantic,”the actor says. He name-checkedsome of his other favorite singers — RobertaFlack, Nina Simone, Billie Holiday, and itseemed that the trait they all shared was apenchant for singing about heartbreak. “Iguess so,” he says. “I just love the sound of ablack woman’s voice.”It’s hard to picture Diesel saying that.Evans, on the other hand, owes his careerto music. He trained as a singer at the TheLondon Studio Centre and enjoyed his firstsuccesses on stage musicals. He originatedthe lead in “Taboo,” the Boy George musical.The part won him the attention of thegay press. In one interview with the GayTimes, a British magazine, he told a reporter,“People come up to me in pubs, gay pubs,mind you, and can’t believe that I’m gay.”The turning point in his career came in 2008,when he recalibrated with a drama, “SmallChange,” about the intense friendship betweentwo Welsh boys.“It was the first time I had been allowedan opportunity to present myself without thesinging aspect and all of a sudden they wereaware that I could act,” he says.The part of Apollo came next in “Clashof the Titans,” Zeus in “Immortals” and now“Dracula Untold.” All three movies are partof a recent formula in Hollywood that repackagesfamiliar stories and remakes them asaction movies, so as to better appeal to thatbox-office sweet spot that’s mainly made up ofteenage boys. Evans’ Dracula is not the urbanevampire we’ve come to know, but a vampire onsteroids, muscle-bound and prone to violence.“I wanted him to be physically powerful.“THIS YEARI’VE GOTTWO OF THEBIGGESTMOVIES OFMY CAREERSO FAR.IT’S ALLGOING INTHE RIGHTDIRECTION.”— LUKE EVANSI wanted him to look like he could take on ahundred men,” he says.Like most action films, “Dracula” has thepotential to spawn a franchise and Evans iskeenly aware of the importance of appearingas marketable as possible. As his stockin Hollywood has risen, he has downplayedhis sexuality. “It’s not something he is hiding,but not a fact he wishes to discuss in thepress,” as one of his publicists put it. Butwhen it was suggested that in taking on theseaction roles, he may be setting a precedent,Evans didn’t entirely sidestep the question.“It’s good for people to look at me andthink this guy is doing his thing and enjoyingwhat he’s doing and successful at it andliving his life,” he says. “And that’s what I’mdoing and I’m very happy.”At the moment, he is deciding between avariety of projects to do next, as well as “TheCrow,” which has not set a production date.After the photo shoot, he had plans to go see“The Real Thing,” now on Broadway withanother singing-dancing action star, EwanMcGregor, and the idea of returning to thetheater was attractive to him.Back in his leather jacket after wrappingup the photo shoot, he is asked about theLaMontagne song. Does he miss singing at all?“I miss entertaining people by singing,yeah,” he says. “It’s a lovely thing to beable to sing.”— ERIK MAZA


MW4WWD THURSDAY, OCTOBER 9, 2014Men’s WeekTommy Hilfiger Marks 10 Years in Indiaby MAYU SAININEW DELHI — When TommyHilfiger said “business is good” whentalking about the brand’s growth inIndia, he wasn’t exaggerating.With 82 stand-alone stores andshops in 91 department stores in50 cities, the brand is marking 10years in India. “It’s more than justan anniversary, but, rather, it’sbeen a lot of positive movement inthe right direction,” said Hilfiger,who was here to help celebratethe anniversary.“Actually, we came into theIndian market at the exact righttime,” Hilfiger told WWD in anexclusive interview, discussingthe globalization of the brand, theIndia business and his own senseof nostalgia visiting India, wherehe first started out 35 years ago.Over the past decade, the $500billion retail industry in India hasbeen on an explosive growth path.Many malls have been built acrossthe country, and global brandshave been testing the waters,seeing the huge population baseand customer propensity to buy.Meanwhile, Hilfiger kept growingits retail presence.“It was just the beginning of theacceptance of foreign brands cominginto India and the beginningof the globalization of fashion,”Hilfiger observed. “Same withChina. The market there wasn’tready, but we entered China aboutthe same time.”Now, the company has 275points of sale in 97 cities in ChinaSonam Kapoorwith Hilfiger.and 1,200 points of sale throughoutthe Asia-Pacific.These numbers reflect thefirm’s global growth. In the lastquarter, Tommy Hilfiger, a divisionof PVH Corp., marked an 8.9 percentincrease in revenue, to $870.4million. This reflected the toplinegrowth of 8 percent in NorthAmerica and 9 percent in internationalmarkets for this quarter.Traveling with Daniel Grieder,global chief operating officer for thebrand, and a team that ensured precisionin every move, Hilfiger talkedabout the growing business andhow the American design sensibilityhas taken root across the world.“I started my designcareer here inIndia,” said the designer,whose launchwas backed initiallyby Mohan Murjani, theIndian businessmanwho, decades later,would help Hilfigeropen stores in India.“Thirty-five years ago,I would take a flightinto New Delhi, getoff the plane and headdirectly into ChandniChowk [in Old Delhi]to buy fabric.“Then I would takethese, in a rickshaw,to the factory, lay them out, standthere and watch each sample [get]made in a small factory not eventhe size of this room. I would drawwhat I wanted to make on the table— pattern paper would cut the pattern— put the fabric on top, cut thefabric, stitch it. Then, I would putall of this into a bag when it was finishedand take it to Bloomingdale’sor Saks or any of the stores in NewYork, then take the orders and goback and stand there while it wasmanufactured.”Hilfiger explored textiles further,visiting the fabric mills insouthern India, in Salem, wherehe would wait for the fabrics of hischoice to be made.It was no easy task, but Hilfigerdoesn’t mention the difficulties.“But that was glamour for me, becauseI was realizing my dream. I wasbeginning to build a brand,” he said.The Tommy Hilfiger brand stillbuys a lot of fabric from India andpart of the global manufacturing isstill done there.“Actually, we source more andmore here because, also, the levelPHOTOS BY SONAM KAPOORDaniel Grieder andTommy Hilfigerof production is getting so goodhere. When you go to the factories,there’s so much that’s handcraftedand [that has such] beautiful qualitiesthat you cannot do anywhereelse,” Grieder pointed out.Murjani eventually sold hisinterest in Hilfiger India, and thebrand now has a joint-venturepartnership with Arvind Ltd. In2011, Tommy Hilfiger acquired a50 percent direct interest in itsIndian business.Amid the whirlwind of celebrationsfor his 10th anniversary,Hilfiger still found time to eat athis favorite restaurant, Bukhara,and visit the narrow streets of OldDelhi in a rickshaw. “I love life,”he said. “I find extraordinary inspirationin meeting people, tryingnew restaurants, visiting places.”Two of the brand’s India-specificdesigns were launched for the anniversarycelebrations: a shawl forwomen and a bandi for men.When he addressed students ofthe National Institute of FashionTechnology, Hilfiger himself worea specially designed blue denimbandi with a specially sewn“Hilfigers Love India” logo on theback. He wore red pants to completethe outfit.“Men normally would wear chinosor denim, but the more fashionablemen like color. I would saymen who are more fashionable willventure into color faster,” he said,with a smile.H&M Concept to Open in N.Y.by SHARON EDELSONNEW YORK — H&M’s new format, “&Other Stories,” is starting a new chapter.The chain on Friday will open itsfirst store in the U.S., in SoHo, as wellas a U.S. e-commerce site.The 6,400-square-foot store is at575 Broadway. It has two entrances: onBroadway, which attracts a mixed audience,including tourists, and on MercerStreet, which is filled with designer andluxury brands.“Be the first to know all about ourU.S. opening and get 20 percent off yourfirst order,” said a notice on Wednesdayon the brand’s Web site, which featureda photo shoot of Iris Apfel, thenonagenarian fashion trendsetter. Thecompany said Apfel represents & OtherStories’ target audience, which is broadand inclusive, as well as an exclusive,insider fashion crowd. “We want tobe a really empowering environmentfor women of all ages,” said HelenaCarlberg, head of social media.The brand is built around a crossmerchandisingconcept that bringstogether items across categoriesin vignettes throughout the store.Customers can see a display that featuresCordovan nail polish, winecoloredsuede shoes and a burgundyand-blackclutch; on the table, a photoshows a model wearing a black sweaterand holding the clutch in one hand withCordovan-painted nails.The store is “all about personalstyling,” said Sara Hildén Bengtsson,the Stockholm-based creative directorof the brand. “We create with a strongwoman in mind. That’s a very fundamentalidea. To make your own personalstyling, you need different directionsand universes. We created four.”There’s an industrial, raw and comfortablecollection, which has shirtswith raw edges and a plaid silk dress;another collection features sophisticateddresses; the third collection is moreminimalist and androgynous, and thelast collection has bohemian and vintageinfluences. An elaborate sweater withdifferent stitches and colors is $130. Thecollections range in price from $9 for anail polish to $300 for outerwear.While & Other Stories employs thelatest technology for its Web site, thebrand likes to tout its handcraftedapproach. “As things get more technicaland digital in the world — and wewant to use that — we still think it’simportant to show something handmade,”said Carlberg. At the Stockholmheadquarters, where chemists for thebeauty collection work alongside furnituredesigners, the place sometimeslooks as if it were a design school, withpeople dip-dyeing paper in differentvats of color to come up with the exactshade for the embellishment on thestore’s white paper bags.Nor does & Other Stories do traditionaladvertising and marketingcampaigns or fashion shows. SamuelFernström, marketing director, said,“We try to bring creativity by bringingin interesting people. We try to doit not from a supercommercial angle.”For example there’s & Other Stories’collaboration with Lykke Li, a Swedishpop singer who is friendly with two designersat the retailer’s Paris atelier.Li asked them for a shoe in which shecould dance and not fall off the stage,and a black patent-leather platform bootwas born. From there, the collaborationexpanded into apparel and jewelry.The company has full creative autonomy,while H&M provides support“only from a technical perspective,such as logistics and travel,” Carlbergsaid. “Everything that reaches the customersis all us.”Man ofTHE WEEKThe pompadour hairstylelooks a bit too “done.” Golighter on the blow-dryerhairspraycombo.With such a big forehead,the lack of lines is suspicious.The Botox treatments areapparently working.The light gray shirt andtie combination worksgreat with the deep grayshiny suit.The slim cut of the pantshelps elongate his frameand highlights his height.Every man should owna pair of shoes like this.And the brown shadecomplements the tie,elevating the chic factor.BEN AFFLECK: B-He’s very puffy. Skip the salt shaker.His neck is on the shorterside. A shirt with a lowerbutton stance would suithim better.The strong shoulderworks to offset thesize of his head, butthe contrast with thetapered waist is abit too exaggerated.Maybe he’s gettingready for his next roleas Batman.Men who are topheavyshould avoidthree-piece suits andgo for a cleaner Vshape. Lose the vest.He may play an unemployed writer in the country’s numberonemovie, “Gone Girl,” but the actor cleans up well on the redcarpet in this gray three-piece suit. However, the designerduds are a bit too tight for his suburban sprawl.PHOTO BY STEVE EICHNER

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