WWD Flower. Girl DRIVING A SAAB ELIE SAAB TO LAUNCH FIRST FRAGRANCE, WITH BEAUTE PRESTIGE INTERNATIONAL, IN JULY. PAGE 6.

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1 DRIVING A SAAB ELIE SAAB TO LAUNCH FIRST FRAGRANCE, WITH BEAUTE PRESTIGE INTERNATIONAL, IN JULY. PAGE 6. ACTION! CANNES KICKS OFF WITH WOODY ALLEN S ODE TO PARIS. STYLE, PAGE 9. WWD Flower FRIDAY, MAY 13, 2011 WOMEN S WEAR DAILY $3.00 Girl Vera Wang is taking another walk down the fragrance aisle with Lovestruck, her first major pillar launch since 2006 s Princess. Lovestruck bows first in the U.K. at Harrods in June before entering U.S. department and specialty stores in August. For more, see page 6. IN A FLASH Vente-Privée Enters U.S. Via Amex Deal By JOELLE DIDERICH and VICKI M. YOUNG THE AMERICAN FLASH SALE market has a big, new foreign entrant. French flash sale pioneer Vente-Privée.com has formed a venture with American Express to create an as-yet-unnamed U.S. flash sale site to be launched late this year or in early 2012, its founder, Jacques-Antoine Granjon, said Thursday. The partners will invest around $35 million in cash and an estimated $5 million in human capital and technology transfers in the venture, which is expected to generate turnover of $500 million within three or four years. The news confirms a front-page story in WWD Tuesday. Granjon made the announcement by video conference from New York City, flanked by Dan Schulman, president of Enterprise Growth Group at American Express. His responsibilities include strategies to expand alternative mobile and online payment services and form partnerships aimed at building revenue streams beyond the traditional card and travel businesses. The two then hosted a meet-and-greet gathering in Manhattan, with local press in attendance, where they talked some more about the structure of the new venture. Schulman highlighted to WWD the combination of the business-to-business-toconsumer format (the venture serves as the intermediary between branded firms and consumers) and American Express data mining capability. The customer is the [different brands] and for SEE PAGE 8 IN WWD TODAY Milly Opens First Store PAGE 3 RETAIL: The contemporary brand opens a 1,800-square-foot store on Madison Avenue and adds children s wear and handbags, with shoes due next year. Tod s Profits Climb PAGE 3 FINANCIAL: The luxury goods firm reported EBITDA rose 34 percent in the first quarter, driven by footwear, leather goods and Asia. Galliano Trial Date Set PAGE 3 NEWS: The designer is set to stand trial in his public insults case on June 22. PHOTO BY ROBERT MITRA; STYLED BY TYLER RESTY

2 2 WWD FRIDAY, MAY 13, 2011 FINANCIAL Kohl s Profits Up, Sales Weaker Than Expected By EVAN CLARK KOHL S CORP. MISSED its first-quarter sales mark as budget shoppers postponed purchases, but the company managed to boost earnings 6 percent by maintaining gross margins. The results stood in contrast to Macy s Inc. s fivefold increase in profits Wednesday and spoke to the disproportionate impact of higher gasoline and food prices on lower-income consumers. Come fall, both retailers will face their own inflation problems as apparel cost increases of 10 to 15 percent filter through to consumers. Department stores are expected to fare better than specialty players given their wider assortments and a broader vendor base, but it s still unclear what will happen as prices rise. Kevin Mansell, Kohl s chairman, president and chief executive officer, said early tests in denim, men s basics and children s showed that raising prices by a percentage in the high-single digits cut unit sales by low-single digits but led to a midsingle-digit increase in dollar sales. But Mansell cautioned analysts on a conference call that the tests were relatively small when you consider what we ll be looking at in fall, where price increases are across the whole store. There s really been no precedent for this in this space, said Liz Dunn, analyst at FBR Capital Markets. It s all a little crazy-making, but I think Kohl s early experience is encouraging, for sure. Nordstrom Earnings Climb 24 Percent in Quarter By DAVID MOIN and MINA WILLIAMS Dunn described Kohl s first-quarter results as pretty weak excluding the retailer s $445 million in share repurchases, which boosted earnings per share. First-quarter profits at the Menomonee Falls, Wis.-based chain rose to $211 million, or 73 cents a diluted share 1 cent better than the 72 cents expected, on average, by analysts monitored by Yahoo Finance. Year-ago earnings were $199 million, or 64 cents. Sales for the three months ended April 30 rose 3.1 percent to $4.16 billion from $4.04 billion a year earlier, and samestore sales grew 1.3 percent. Kohl s was looking to boost sales by 4 to 6 percent on a 2 to 4 percent comp rise. Gross margin expanded by $49 million, but rounded off to 38.1 percent of sales for both periods. Selling, general and administrative expenses rose by $33 million, inching up to 25.7 percent of sales from 25.6 percent a year earlier. We weren t happy with our sales performance in the 7.8% First-quarter same-store sales increase. NORDSTROM INC., fueled by strong sales highest in men s, designer and jewelry categories, on Thursday reported first-quarter earnings rose 24 percent to $145 million, or 65 cents a diluted share. That compares with net earnings of $116 million, or 52 cents, in last year s quarter. The results included charges of 4 cents a share due to the March acquisition of the HauteLook membership-only flash sale Web site for $180 million in stock. First-quarter same-store sales increased 7.8 percent, while net sales increased 12 percent to $2.23 billion. Stores in the South and Midwest were top performers. The direct channel outpaced the overall Nordstrom increase. Nordstrom Rack outlets were up 1.2 percent on a samestore basis. The Seattle-based upscale chain exceeded Wall Street expectations and met the high end of its own internal plans. But the stock dropped 1.8 percent, or 87 cents, to $48.30 after the company adjusted its year-end forecast down to $2.80 to $2.95 from previous guidance of $2.95 to $3.10, due to the purchase of HauteLook, which should break even this year. Samestore sales are seen increasing 2 to 4 percent for the year. We re off to a good start in 2011, said president Blake Nordstrom during a conference call. We are continuing with compstore increases and earnings growth. Designer really across the board for us has been excellent, added Pete Nordstrom, president of merchandising, who cited dresses and contemporary styles as among the standouts. We are selling bridge to upper-priced products really well. Our customer clearly tells us they prefer to buy new, full-price merchandise DOING MORE with less Kohl s early tests in denim, men s basics and children s showed price increases by a percentage in the highsingle digits led to lowsingle-digit unit declines first quarter, Mansell said, adding that shoppers were very focused on buying closer to need. When she doesn t have a need which she really didn t have in March and April she delays buying, he said. We re probably going to get some pentup seasonal demand and, to be honest, that s not factored into our guidance. but boosted sales dollars by midsingle digits. Kohl s projected second-quarter profits of between 96 cents and $1.02 a share versus the $1 analysts had penciled in. Factoring in earnings so far and share repurchases, Kohl s raised full-year guidance to between $4.25 and $4.40 a share from the previous range of $4.05 to $4.25. The company also declared its first quarterly dividend, of 25 cents a share, payable June 29 to shareholders of record June 8. Kohl s stock gained 3.9 percent Thursday to $55.68 as the S&P Retail Index rose 1 percent to after hitting a new all-time high of earlier in the day. WITH CONTRIBUTIONS BY ARNOLD J. KARR [rather] than old discounter merchandise. Men s wear, he added, is making up for lost ground in recent years and could be the biggest growth factor. With full price selling going well, there will be less merchandise for Nordstrom s anniversary sale in July, which is a huge volume generator. However, the Encore large size category has not been as robust as other categories, Pete Nordstrom noted. Nordstrom could make some bold moves this year, including announcing full-line locations in Manhattan and Canada, where the company is aggressively eyeing sites. It has not given any timetable for possible announcements. In Manhattan, Nordstrom is eyeing the West Side, specifically the Hudson Yards mixed-use project under development between 30th and 33rd Streets and 10th Avenue and the West Side Highway, and 3 Columbus Circle, an office building that could be demolished and converted to retail space. In Canada, Nordstrom is considering Toronto or Vancouver, but sites are not easy to come by. Among the moves that are in the works this year, and cited by executives at the company s annual meeting Tuesday and during the conference call: By July, 5,000 to 6,000 associates (and significantly more by year end) will have mobile devices to check out customers paying by credit card so they can avoid lines. Handheld devices will also help associates communicate with customers even when they re in dressing rooms and search for items that could be out-of-stock on premises but elsewhere in the chain. IPads are being used to show customers merchandise that may not be in the store but is available for home delivery, and receipts are also being sent out. Nordstrom will more than double its personal stylists to 985 chainwide this year. Three full-line units and 18 Racks will open this year. At 350 West Broadway, in Manhattan s SoHo neighborhood, Nordstrom will open this fall a small store purely for charity, called Treasure & Bond. The $9.3 billion Nordstrom ended the first quarter with $1.4 billion in cash and will make much of it available to enhance systems, stores and service. WITH CONTRIBUTIONS FROM A.J.K. SECTORS IN THIS ISSUE INTERNET 1 FINANCIAL 2,3 LEGAL 3,8 RETAIL 3 DAILY QUOTE FRAGRANCES 4,6 COSMETICS 6,7 FASHION 8,11 PEOPLE 9,10,12 You can t look anywhere in Paris and not see beauty. FAYE DUNAWAY. PAGE 10. TODAY ON WWD.COM EYESCOOP: More pictures from The New York City Ballet s annual Spring Gala and the Museum of Modern Art party at WWD.com/eyescoop. BEAUTY: See more pictures of Violent Lips temporary lip tattoos at WWD.com/ beauty-industry-news. BUSINESS: More financial news and daily stock movements at WWD.com/business-news. ONLINE THIS WEEKEND: Story of the Week Arden Wohl PHOTO BY STEVE EICHNER TO REPORTERS AND EDITORS AT WWD, THE ADDRESS IS FIRSTNAME.LASTNAME@FAIRCHILDPUB.COM, USING THE INDIVIDUAL S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT 2011 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 201, NO Friday, May 13, WWD (ISSN ) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, November and December, two additional issues in February, March, April and August and three additional issues in September and October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY Shared Services provided by Condé Nast: S.I. 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3 WWD FRIDAY, MAY 13, WWD.COM By ALESSANDRA ILARI and JOELLE DIDERICH PARIS PPR seems to have a growing appetite for acquisitions. The luxury-to-retail group, which on Thursday launched a cash tender offer for sports firm Volcom Inc., also has its sights on the 18 percent stake in Italian fine jewelry company Pomellato owned by the Damiani family, according to market sources. A PPR spokeswoman had no comment Thursday. It is understood several companies have expressed interest in Damiani s minority stake since Pomellato is one of the few global independent companies left on the jewelry scene. Pomellato s chief executive officer, Andrea Morante, a high-profile entrepreneur-cuminvestment banker, is plotting an initial public offering by While Guido Damiani, ceo of Damiani SpA, declined to comment on the PPR speculation, he said his dream continues to be to form an Italian fine jewelry group, but if that falls through, the family would consider selling its stake. The Rabolini family owns the balance of Pomellato shares. In the meantime, Damiani has assigned Mediobanca a mandate to explore offers. According to a source, LVMH Moët Hennessy Louis Vuitton s recent acquisition of Bulgari, coupled with the rebound in luxury goods, has piqued interest for fine jewelry firms. Separately, PPR said Thursday it would file a statement with the Securities and Exchange Commission providing the terms of the tender offer for Volcom, scheduled to close on June 9. The Californian action sports brand is to file a statement including the recommendation of its board that stockholders accept the $607.5 million offer. The French retail-to-luxury group is offering $24.50 a share, a premium of 37 percent over Volcom s three-month average share price. The closing of the offer is conditioned on the valid tender of a majority of the outstanding shares of Volcom common stock. The acquisition is the first step Rings from Pomellato. in PPR s bid to build a mass market division around Puma that could eventually eclipse its luxury holdings like Gucci, Bottega Veneta and Yves Saint Laurent. Having spun off its African distribution business CFAO and furniture chain Conforama, PPR is looking to shed the rest of its retail operations and use the proceeds to fund more acquisitions. RETAIL Michelle Smith Opens 1st Milly Store PHOTO BY KYLE ERICKSEN PPR Said Eyeing Stake in Pomellato By SHARON EDELSON NEW YORK Milly s first store, an 1,800-squarefoot flagship at 900 Madison Avenue and the corner of 73rd Street here, is an exercise in branding. We want to present some of the iconic images associated with the brand, said designer Michelle Smith, citing the oversize brass Milly logo M door Designer Michelle Smith s spring collection was inspired by Peggy Guggenheim. handles, Milly s ladylike script logo woven into rugs and Milly pink painted hangers. Sales of $1.8 million are expected in the first year, according to Andy Oshrin, Smith s husband and Milly s chief executive officer. Oshrin said Milly has an option to use the second floor of the building for retail space if it decides to expand. We looked at this space before the recession, he said. At the peak of the real estate market, we couldn t have broken even. We ended up looking some more, but the market didn t adjust. We even took our sights off Manhattan and looked at Greenwich, Conn. Then, we returned to the space and got it for 20 percent less rent. Calypso St. Barth in July will open a store next door to Milly. Mini Milly, a new category of ready-to-wear for girls, launched in January. Also new are handbags, which are displayed in a beehive accessories fixture, a massive built-in piece of furniture with a hexagonal outline. Next year, there will be 50 percent more styles, Oshrin said. Bridal, another new business, is displayed in the foyer outside the dressing rooms. Lots of brides are wearing two dresses at their wedding now, Smith said. They wear long to the service and short to the reception. Designs for spring include the Justene dress, $375; Katrina sheath dress, $525; the Caroline maxi dress, $495, and the Milly goat skin hobo bag, $445. Oshrin said shoes will be a big business for Milly once they launch in Maybe we ll do home, stationary and candles, but those may be a year out, he said. Smith and Oshrin have more stores in mind, but they re in no rush; the business is 100 percent selffinanced. We know the best cities for our business, Boston, San Francisco, Palm Beach, Dallas and Atlanta, said Oshrin, who cut his apparel teeth at his family s Gallery outerwear business. The store s midcentury furniture, dark floors and vintage chandeliers mimics Smith and Oshin s apartment. A seating area features two Milo Bauman chairs in pink, and a purple tufted sofa sitting on a goatskin rug. A rosewood armoire holds dresses and accessories. Elaborate moldings on the walls and ceilings were chosen by Smith, who studied at Moore College of Art and Design in Philadelphia, the Fashion Institute of Technology here, and ESMOD in Paris, while also interning at Louis Vuitton and Christian Dior Haute Couture. We re showcasing pieces from our personal art collection, she said. I love art. The whole [spring] collection was inspired by Peggy Guggenheim. While the store is a homage to Smith s feminine sensibility, there s one jarring exception, the album Never Mind the Bullocks, Here s the Sex Pistols decorating one of the shelves. FINANCIAL Tod s Sales Increase 17.1% By LUISA ZARGANI MILAN A spike in the footwear and leather goods categories and gains across all geographic markets, led by Asia, lifted Tod s SpA s revenues and profitability in the first quarter ended March 31. Sales at the Italian luxury house rose 17.1 percent to million euros, or $341.2 million, compared with the same period the previous year. The firm, which controls the Tod s, Hogan, Fay and Roger Vivier brands, said earnings before interest, taxes, depreciation and amortization climbed 33.6 percent to 65.1 million euros, or $91.1 million, and earnings before interest and taxes surged 36.2 percent to 55.9 million euros, or $78.2 million. I m really satisfied with the outstanding Q1 results: sound sales growth, for all the brands, in all the product categories and across all the geographical areas, outstanding organic growth, huge improvement of operating profitability, said chairman and chief executive officer Diego Della Valle. Considering the same good results of the orders collection for the next fall-winter season, I believe that our group will deliver strong results also in the current year, confirming its huge growth potential, based on the high quality of products and the exclusivity of our brands, more and more appreciated by customers. The core Tod s brand kicked off the year with 19.3 percent growth, totaling sales of million euros, or $169.7 million, in the first quarter. Hogan gained 14.5 percent to 91.8 million euros, or $128.5 million, and Fay 9.5 percent to 23.9 million euros, or $33.4 million, mainly driven by the Italian market. Roger Vivier, which is still in a startup phase, climbed 54.7 percent to 6.6 million euros, or $9.2 million. Dollar figures are converted at average exchange rates for the periods to which they refer. Footwear continues to be the group s driving force, and this category in the period posted a 16.2 percent increase, reaching sales of 181 million euros, or $253.2 million. Tod s-branded handbags and accessories helped boost the group s leather goods division, which grew 21.6 percent, reaching revenues of 34.6 million euros, or $48.4 million. Apparel sales rose 17.8 percent to 28 million euros, or $39.2 million. Revenues gained in all markets around the world. Italy, the group s main region, grew 15.5 percent, with sales of million euros, or $196.7 million, and the rest of Europe gained 13.5 percent. While reducing the number of its independent clients, the U.S. market grew 5.3 percent to 12.2 million euros, or $17 million. Revenues for the rest of the world area grew 32.9 percent, totaling 41.1 million euros, or $57.5 million. The company said it saw excellent results in Mainland China, Hong Kong and Macau. It also stated that Japan is recovering vigorously and with tenacity, following the earthquake, tsunami and nuclear crisis that hit the country in March. LEGAL Galliano Trial Set for June 22 By ALEX WYNNE PARIS John Galliano will stand trial in Paris for public insults at the High Court here on June 22, it was revealed at a hearing on Thursday. The designer, ousted from Christian Dior and his signature fashion house last March in the wake of allegations of racist and anti-semitic outbursts, was not present at the Palais de Justice. He was represented by his new lawyer, Aurélien Hamelle of Metzner Associés. John Galliano will be present at the trial, Hamelle said outside the courtroom, his first public appearance in the Galliano case. I have spoken to him. He is sick, but he is getting the care he needs, and he is much better. He will be better still by the day of the trial. He very much regrets what happened. During Thursday s hearing, judiciaries set the date and also stated the names of plaintiffs: Geraldine Bloch, Philippe Virgitti and Fathia Oumeddour. The three people allege Galliano hurled insults at them at a Paris bar during two separate incidents, one on Feb. 24 and one on Oct. 8, The third plaintiff, Oumeddour, came forward about the Oct. 8 incident following the February announcement that Bloch and Virgitti would be taking legal action against the designer, a source close to the dossier said. The penalty in France for insult against people due to their origin, belonging or not belonging to a religion, race or ethnicity is six months imprisonment and a fine of 22,500 euros, or $31,271 at current exchange, according to the French prosecutor. This is not about money but about principles, said Bloch s lawyer, Yves Beddouk. The hearing is slated to begin at 1:30 p.m. on June 22 as men s fashion week gets under way in the French capital and the judgment is expected the same afternoon.

4 4 WWD friday, may 13, 2011 beauty Emma Watson Talks Film and Fragrances By Jennifer Weil PAriS At age 21, ingenue actress emma Watson already boasts more than 10 years of filmmaking experience, and her maturity was plain in her latest project lancôme s Trésor Midnight rose, the women s fragrance due out worldwide in September. i helped choose the color of the rose, said Watson, who is a lancôme ambassador, sitting in the Hôtel ritz here early evening on Tuesday. Midnight rose is the latest addition to the Trésor franchise, which began in 1952 with the original scent of that name. A new version of Trésor came out in 1990, and 20 years later l Oréal-owned lancôme introduced Trésor in love. Midnight rose s juice, with notes including rose absolute, raspberry, jasmine, peony, black-currant bud absolute and pink pepper, was created with international flavors & fragrances Anne flipo. Mario Testino photographed the advertising campaign. i was involved in the concept for the [ad] film and the tag line, Catch my heart if you can, said Watson. She had a hand, as well, in selecting the fragrance s name and casting actor Cyril Descours for the campaign. Plus Watson suggested it glean inspiration from Jean-luc Godard s Breathless. The hat [in the ad] was my hat, which i bought at a flea market in Paris, she continued. i was very involved in the script. it s been really fun for me. So has her appetite been whetted for directing someday? Absolutely. it s funny, the guys at lancôme were like, You need to be directing, emma. i had ideas about every aspect. i m sure i drove them insane, she said. Watson ticked off a list of directors she dreams of working with, including Guillermo del Toro, Baz luhrmann, Dave fincher, Sofia Coppola and Mike leigh. Most recently, Watson s been playing two different types of characters. My role in My Week with Marilyn is more of an adult role; i m playing a young woman, whereas in Perks of Being a Wallflower, i am playing a girl coming of age. She s still very much a teenager, said Watson, adding she needed to flirt in the former movie ( which is new for me ). So it s interesting. i m kind of treading that line. She s on the verge fashion-wise, too. Often celebrated for her fashion taste, Watson, who recently topped Glamour U.K. s best-dressed list, described her style as quite clean and simple. i think less is more less makeup, less accessories is better, she said. i try to dress age-appropriately, which isn t actually that easy when obviously high-end clothing is designed for women who are older than i am. it s a fine line to tread between looking smart and looking ready to go on a red carpet but also looking like i m 21. it s quite difficult. Watson likes wearing young designers creations. Casually i love to wear isabel Marant, A.P.C., Jenna Menard Named to New Clinique Role AfTer GAininG market leadership in skin care, Clinique is turning its attention to its color cosmetics business with the appointment of Jenna Menard as the brand s Global Colour Artist. We are seeing the second pillar of the strategy come to life, said lynne Greene, global brand president of Clinique, Origins and Ojon. When Greene took the helm of the estée lauder Cos. inc.-owned brand in 2006, the priority was on building a strong skin care pillar and reconnecting with Clinique s dermatological roots. That led to a series of launches of problem-solving products, culminating in last year s top-selling even Better Dark Spot Corrector. now that we ve got that moving, Greene observed, we are on to the makeup pillar. According to industry sources, color cosmetics now generates about 45 percent of Clinique s volume, and the hope is that makeup will grow as fast as the overall brand, roughly 8 percent. Menard will give advice on the creation of new products, but more importantly she will take the lead creating digital content for the brand s marketing campaigns, primarily how-to videos for broadcast on YouTube. Also, she will be working with the brand on other Jenna Menard Photo by barwerd van der Plas cyber projects that Clinique declined to describe. Greene said Menard s approach will be straightforward and down to earth for women who simply want to look their best every day. The approach, she said, is to show women how to bring out who they are by themselves. Here s how to use color and want to show you how to do it yourself. Emma Watson in front of the lens. Greene said that how-to videos have always been a tricky sell in the industry because there is a lot of psychology involved in putting on makeup. it s not just pretty colors, she noted. if that s true, Clinique found the right artist in Menard, who graduated from lafayette College in easton, Pa., with the original intention of working as a social worker, specifically with adolescents. She changed her mind and refocused on beauty after years of watching her hairdresser mother work on clients in her Pennsylvania salon. Menard was struck by the transformation power of the process. She noticed that those women walked out [of the salon] as different people. They held their heads higher and their backs straighter. it dawned on her that a career in beauty was another path to helping people feel better. During college, Menard met Academy Award-winning costume designer Ann roth, who helped her with her first job as an assistant on the set of the film The Stepford Wives. from there, she learned her craft. Menard describes her approach of talking to clients as an ordinary person, rather than another makeup artist, and breaking down the process in the most understandable terms, like how to hold the brush to draw it across the eyelid. Her goal: Help them realize what they can do and to bring it home. PeteBorn Photo by brendan hoffman/getty ImaGes Chloé and agnès b. in American brands, i love Vena Cava. i think Stella McCartney is great, and British brands obviously, i love Burberry, she said. But i mix and match. What she wore to her interview was a good example: a Diane von furstenberg dress paired with Topshop shoes. i m very interested in ethical clothing, continued Watson, who revealed she s talking to lancôme executives about a possible eco-friendly project. it s very early stages, said Watson. The actress also divulged she s growing her hair (she set off a lather of media excitement when she cut it short last summer) a bit. i m excited to try to get it into kind of like a bob. Watson said signing on with lancôme feels like the right thing to have done. The brand, she explained, has this amazing heritage and this amazing history. it s very well-established but at the same time seems to be at the forefront. like Watson, it was born in france. Being back in Paris for lancôme feels like i m coming home, she said. Sephora Opens in Malaysia PAriS Sephora officially opened on May 4 its first store in Malaysia, which serves as its second flagship in South and Southeast Asia. The two-story location measures more than 10,000 square feet. The lvmh Moët Hennessy louis Vuittonowned perfumery chain s unit is in Kuala lumpur s Starhill Gallery, along the Bintang Walk. Sephora s vision for Malaysia is to be a beauty authority, promoting a new shopping experience to this country s gents and ladies alike, offering an unparalleled range of products and a high standard of service, stated ravi Thakran, president of Sephora for South and Southeast Asia. We are very excited and hope for everyone to be part of this with us. More importantly, we hope to make Sephora Malaysia a destination where customers can constantly learn the latest beauty trends and tips to further complement their savvy lifestyles. To that end, A view of the new Sephora plans to Malaysia store. introduce facial services and retail experiences on the location s second level with a yet-to-be-divulged international brand name. The new Sephora s store design includes merchandising and light fixtures that aren t in any of the chain s other doors. it carries brands such as Christian Dior, Clinique, lancôme, Amazing Cosmetics, Bare Minerals and Urban Decay. Sephora already has flagships in cities like Paris, new York and Milan. its first flagship for South and Southeast Asia was open in Singapore in november The perfumery chain is present in 27 countries with more than 1,000 stores. J.W.

5 Speakers include: LAST CHANCE TO REGISTER Angela Guy SOFTSHEEN-CARSON beauty FORUM May 17, 2011 Asia Society & Museum New York City JOE BASTIANICH B&B HOSPITALITY GROUP brand. new. DEBORAH ROBERTS ABC NEWS Plus: José Barra TARGET CORPORATION Deborah Lippmann LIPPMANN ENTERPRISES Annalise Quest HARRODS LTD. Ingrid Jackel PHYSICIANS FORMULA HOLDINGS INC. Jane Hertzmark Hudis THE ESTÉE LAUDER COMPANIES INC. Claudia Lucas QVC INC. Judith Gross INTERNATIONAL FLAVORS & FRAGRANCES INC. Vassiliki Petrou THE PROCTER & GAMBLE COMPANY Daniel Kaner ORIBE HAIR CARE Josie Maran JOSIE MARAN COSMETICS Linda Wells ALLURE Jo Horgan MECCA COSMETICA Lynne Greene THE ESTÉE LAUDER COMPANIES INC. Laurice Rahmé BOND No. 9 Alexander Bolen OSCAR DE LA RENTA Steven Teitelbaum BOARD CERTIFIED PLASTIC SURGEON Sponsored by: FOR INFORMATION: Marne Friedman / marne_friedman@condenast.com wwd.com/beautyforum

6 6 WWD FRIDAY, MAY 13, 2011 beauty Vera and Leighton: Lovestruck By JULIE NAUGHTON YOU D EXPECT Vera Wang and Leighton Meester, the face of her new Lovestruck fragrance, to be discussing the scent after presenting it to a passel of beauty editors at Wang s spacious Park Avenue apartment. Especially since the new fragrance is the designer s first major scent in five years and is expected to establish a new direction for her franchise. Instead, postevent, the new BFFs are animatedly engaged in a discussion about Murano glass. These are so cute, says Meester, closely examining a white glass with colorful accents plucked from a nearby table and inquiring where they can be found. Wang replies, You get them in Venice. I ll send you a dozen. I ll get them as a housewarming gift for you. I shop wherever I am, says Wang. I m an equal-opportunity shopper. Leave me in a mall for three days, and you ll never find me again. I m doing my best to sustain the economy single-handedly. The lovefest continues as the two remember their first meeting, at Fashion s Night Out. Wang had already decided that she wanted Meester as the face of her newest fragrance, but was unsure if the deal had been inked when she spotted the actress across an aisle. Wang notes dryly: For once, I kept my mouth shut. Casting is especially important for Wang, who said she takes great pride in the fact that her runway models not to mention her fragrance ads, which have featured Zoë Kravitz and Camilla Belle, among others don t look model-y. For Lovestruck, we wanted an actress, said Wang. If you can transport somebody with a runway collection, but you can t transport them with perfume, there s a problem. It s Meester s first scent campaign and also the first major fragrance outing in several years for Wang, who intends Lovestruck to comprise a third pillar of her scent business. The other pillars are Vera Wang Signature, which launched on Valentine s Day 2002, and Princess, which launched in September 2006 and has spawned several spin-offs. I think this is the hardest we ve ever worked on an overall fragrance concept, said Wang of the flower-bedecked cap, the nail-polish finish of the script on the bottle, the juice and, of course, the spokeswoman and the ad campaign, developed with Catherine Walsh, senior vice president of American fragrances at Coty Prestige. The scent, concocted by Givaudan s Stephen Nilsen in collaboration with Doreen Bollhofer, has top notes of pink guava and angelica flower, a heart of tuberose and lotus blossom and a drydown of precious woods and sheer musk. Eau de parfum in three sizes 1 oz. for $48, 1.7 oz. for $68 and 3.4 oz. for $78 will be sold, as will a body lotion, $45 for 5 oz., and a shower gel, $40 for 5 oz. Coty executives declined comment on projected sales, although industry sources estimated that the lineup would do upward of $50 million at retail globally in its first year on counter (the U.S. is expected to account for two-thirds of that figure), with at least $25 million expected to be spent globally (half in the U.S.) on advertising and promotion. The ad campaign involved Meester posing on a fire escape in a maroon couture Wang gown on a windy, chilly November day. Everyone else was in three parkas, and Leighton is standing there in a strapless evening gown, said Wang. People were hanging out of windows, up on roofs, taking pictures of Leighton. There s nothing like the real client on the street to get a market read. I was above it all literally, said Meester, referring to her fourth-floor perch on the Mercer Street building s fire escape. The print ads will begin running in September fashion, beauty and lifestyle magazines in the U.S., while TV is slated for the holidays, noted Lori Singer, group vice president of global marketing for Coty Prestige Designer Fragrances. Carter Smith shot the ads, with Trey Laird serving as creative director. The scent is out June 5 at Harrods in the Vera Wang and Leighton Meester at the DKMS Gala. U.K. and will be launched in the U.S. in August in about 2,200 department and specialty store doors. Meester, bitten by the singing bug while she was filming Country Strong, has also begun writing music and performing. [ Country Strong ] influenced it, but it s more like singer-songwriter it started out as just me and an acoustic guitar, and now I have two other guitar players, a bass player and a drummer, she said of Check in the Dark, the band. My influences have been artists I love, like Joni Mitchell, Neil Young and Tom Petty. Every day I come to my band and I m like, I wrote a new song! And they re like, Stop. Stop it. We have enough songs. Meester s next movie, Monte Carlo, is out in July. I have another movie coming out in September called The Oranges (Hugh Laurie co-stars), where my character falls in love with a slightly older man, she starts. Wang pipes up, Oh, you mean like [they do on] the Upper East Side of New York, L.A., San Francisco and London and every other city I know? eliciting a giggle from Meester before the duo heads off to get ready for the DKMS Gala, which they attended that evening. PHOTO BY STEVE EICHNER Elie Saab Makes Scent Debut PARIS The idea for the first Elie Saab fragrance, due out in July, was to translate his fashion s DNA and philosophy into a women s scent. The first step at [Shiseido s Beauté Prestige International] is really to get to know the fashion designer, said Nathalie Helloin Kamel, vice president of Parfums Issey Miyake and Elie Saab at BPI. We really try to do our best to put his spirit inside a bottle. With Elie Saab Le Parfum s fragrance flacon, BPI executives wanted to elicit the feeling of when the designer s wedding dress appears on a catwalk. Kamel called it an instant of magic, of grace. The scent bottle design has an interplay and balance between what BPI executives called the rigorous and the fabulous that weaves through Saab s universe. For the heavy glass flacon, they took a cue from a crystal object the designer had on his desk in Beirut for years. We were looking for a very beautiful object, really linked to the world of quality, of high fashion, said Kamel, referring to the Elie Saab fragrance bottle made with Sylvie de France. So it was very important to have something totally timeless. Key to its conception were light, brilliance and transparency. For the flacon s outer packaging, the beige gives a nod to the travertine marble and the chocolate brown to the furniture in Saab s stores. Meantime, white symbolizes his wedding dresses and a touch of gold stands for the sun in Lebanon, said Kamel. Here you have a kind of concentrate of all the emblematic codes and colors of the company, she explained. While creating the floral solar woody fragrance, Takasago s Francis Kurkdjian had in mind sensations of femininity, colors and brightness. The juice includes notes of orange blossom, jasmines, patchouli and rose honey plus a cedar woody accord. Anja Rubik stars in the scent s advertisement, which was shot by Mert Atlas and Marcus Piggott. It comes in single and double pages. We started from the point that when you wear an Elie Saab dress, it s as if the exceptional has burst into reality, said Kamel. The Elie Saab fragrance will be introduced in July in France, the U.S., U.K., Spain, Germany and Lebanon. Other countries are to sell it starting in September. Altogether, it will be carried in about 10,000 doors worldwide. BPI executives would not discuss sales projections, but industry sources estimate the fragrance will generate $50 million in first-year retail sales globally. In France, there will be eau de parfum sprays in 90-, 50- and 30-ml. bottles, which are to retail for 102 euros, or $ at current exchange; 75 euros, or $106.55, and 50 euros, or $71.05, respectively. Ancillaries will include a body cream, body milk, shower cream and deodorant. JENNIFER WEIL PHOTO BY ROBERT MITRA The Elie Saab ad.

7 WWD FRIDAY, MAY 13, WWD.COM FOR SNIPPETS, SEE WWD.com/ beauty-industry-news. Fashion Fair Sweeps In Sales By ANDREA NAGEL BIG THINGS can come from small packages. Fashion Fair Cosmetics partnership with Sony Pictures a deal that made the prestige line for women of color the official beauty brand of the entertainment firm s recent movie Jumping the Broom is being well received at Macy s and proves that social media marketing combined with a strong instore presence can make a six-item, limited edition collection reap big rewards. The collection, which includes a lip gloss, mascara and four eye shadows, entered 139 Macy s doors on May 2. An blast to Fashion Fair s customer list on May 6 the premiere date of the movie, starring Angela Bassett and Paula Patton resulted in an 111 percent increase in the brand s Web site traffic and 6,400 new visitors to fashionfair.com over three days beginning with the e-blast. Web site sales increased 53 percent versus the prior week. A partnership with beauty bloggers and instore makeovers at Macy s on Mother s Day helped drive consumption up 13.5 percent versus the previous week. The brand also gained 131 Facebook fans, according to Fashion Fair. The collection is a great way to speak to a younger audience. To see it worn on such influential stars as Angela Bassett is a testament to the brand s appeal and commitment to its renewed creative energy, said Muriel Gonzalez, Macy s executive vice president, general merchandise manager, cosmetics, fragrances and shoes. A bestseller, she said, has been the Seashell Pink eye shadow, which sells for $14. The lip gloss sells for $17 and the mascara is $ The almost 40-year-old cosmetics brand is on a mission this year to PHOTO BY GEORGE CHINSEE keep up its profile and reinvigorate its image overall. According to Rodrigo Sierra, chief marketing officer, senior vice president of parent company Johnson Publishing Co., the brand is taking a step back and bringing in new leadership with a new vice president of marketing who has yet to be named, and new vice president of sales Ethan Foster, and vice president of operations, Robert We now want to reposition [Fashion Fair] to a younger customer with style and substance so it can move forward. Scott. We now want to reposition it to a younger customer with style and substance so it can move forward. That s why we got the partnership with Sony for Jumping the Broom. In 2008, the brand received a makeover with new packaging and line extensions. Fashion Fair has been a part of Macy s cosmetics mix for 30 years and RODRIGO SIERRA, JOHNSON PUBLISHING CO. Fashion Fair s Jumping the Broom collection. is carried in 200 of its doors, as well as online. The brand was born in 1973 and that year entered Marshall Field s on Chicago s State Street, now Macy s. In stores, Fashion Fair is supported with beauty advisers, as well as with seasonal beauty promotions and various customized programs that showcase the line and its products, said Gonzalez. Industry sources estimate Fashion Fair generates between $40 million and $50 million in annual sales and is sold in 640 outlets globally, including Macy s, Dillard s, Belk and Bon-Ton Stores, as well as in stores in Europe, Canada and the Caribbean. Fashion Fair is owned by Johnson Publishing Co., which also owns Jet and Ebony magazines and is led by Desiree Rogers, former White House social secretary. The brand was born as an extension of a traveling runway show, called Ebony Fashion Fair, which showcased couture designs collected by Eunice Johnson, wife and business partner of John Johnson, who founded Johnson Publishing in The models in the show, many of whom were women of color, reportedly struggled to find makeup designed to meet their skin tone needs, so Johnson created the cosmetics line. Violent Lips temporary tattoo in The Leopard. Violent Lips Enters Lip Tattoo Business VIOLENT LIPS is giving lip service literally to the temporary tattoo beauty trend set in motion by Chanel and Temptu. The idea for Violent Lips, started by music manager Jeff Haddad and his partner Lori Magnier, arose after Haddad s nine-year-old daughter scored multiple compliments from decorating her mouth with Chanel temporary tattoos. If only Haddad could make removable tattoos specifically for lips, he thought, he d have a hit on his hands. We ve been paying makeup artists to do this to our artists on shoots, and nobody has made it, said Haddad, who has worked with The Pussycat Dolls. After an initial investment of $188,000 and some eight months of development, Haddad said he arrived at a patented process to produce impermanent lip tattoos that have been approved by the U.S. Food and Drug Administration. Violent Lips temporary tattoos come in three-packs for $14.95 and are applied in a four-step process. They last four to eight hours to endure a raging night out, Magnier suggested and can be removed with mineral or baby oil. Decidedly not for beauty introverts, Violent Lips premiered last month with a lounge inside the Las Vegas nightclub Gallery. The brand has doled out hundreds of temporary tattoos daily to club goers in 12 designs, including prints in polka dots, zebra stripes and cheetah spots, and colors from red to rainbow. Four glitter varieties will follow, and 18 more designs will make their debuts after that. Violent Lips can also be customized, and candy store Sugar Factory has signed on for 10 sweetsinspired removable lip tattoos. Haddad estimated Violent Lips would sell 1 million units by the end of this year. The brand will extend beyond lips into eyelids next; there are 10 eyelid designs scheduled to launch in around six weeks. Describing Violent Lips as Minx for the lips, Haddad said the brand will enter spas and nail salons, but has plans for wider retail distribution as well. He mentioned that Macy s and Sephora are on his retail wish list. RACHEL BROWN A Dr. Lancer s cleanse item. Derm Enters Product Fray After Oprah Urge DERMATOLOGIST Harold Lancer was never interested in selling his skin care line in outlets beyond his Beverly Hills office and its Web site. But Oprah Winfrey has a way of changing people s minds. Winfrey became Lancer s patient after her trainer, Bob Greene, started seeing Lancer about a year ago. Pleased by the results of his straightforward skin care regimen, the duo encouraged the 57-year-old doctor to let consumers get their hands on his products. If Bob Greene thinks it is a good idea, and Oprah thinks it is a good idea, I probably don t have to think about it anymore. It probably is a good idea, said Lancer. He proceeded to enter into a business agreement with Greene, with whom Lancer has co-authored a book titled 20 Years Younger, to put Lancer Skincare into stores. Nordstrom exclusively launched six products $50 Polish, $50 Cleanse, $100 Nourish, $50 Vitamin C 10% Cream, $50 Glycolic 10% Facial Cream and $34 Vitamin C Antioxidant Sunscreen SPF 30 in 17 doors the last week of April. Lancer said the products would likely roll out across the department store chain within three months. Industry sources estimate Lancer Skincare would generate around $1.2 million in first-year retail sales from the Nordstrom distribution. Cece King, Nordstrom s national market buyer, cosmetics, recounted that Greene approached the retailer about Lancer Skincare and piqued curiosity by mentioning Winfrey had recommended it. The fact that the line was being made available for the first time outside of Dr. Lancer s office was appealing to us. We were aware that he has many clients, including boldfaced names like Ms. Winfrey herself, who were devotees of the line, and we hoped our customers would respond to it as well, she said. King also thought Lancer Skincare s pareddown scrub-cleanser-moisturizer routine was appealing. The routine is centered upon three products: the skin-resurfacing Polish, cleanser Cleanse and day or night nourishment cream Nourish. Although Lancer has up to some 20 products available at his office, he explained the additional products address individual needs, and the basic three-step process is for everyday skin health. In today s complex world, we think our customers will respond to a concept based on simplicity, said King. Based on the skin care experiences of his patients, Lancer concluded, The consumer buys a whole bunch of stuff and has no idea what it is for or how it is to be used, and that results in confusion and noncompliance. With Lancer Skincare s polish, cleanse and nourish system, he continued, it is impossible to fail in using it right. That leads to brand dedication and follow-through in use. Lancer realizes his products might encounter skeptics who ve been disappointed by dermatologists brands. Aiming to mimic the success of the dermatologist-fronted brand Murad, he said, There was a whole bunch of copycat private-label things that burnt out the market. Unlike most privatelabel derm brands, he continued, Lancer Skincare has for the last decade been developed for use by my patients and that hasn t changed. The issue will be whether the consumer recognizes that. R.B.

8 8 WWD FRIDAY, MAY 13, 2011 Vente-Privée, Amex In Flash Sale Venture Dan Schulman and Jacques-Antoine Granjon $2 billion Size of the private sales market today. LEGAL {Continued from page one} the consumer, we ll [take the data mining component to] create events for them to come, Schulman said. The venture will combine Vente- Privée s database with American Express affluent and luxury cardholder base. Initially it ll experiment with different incentives to see which ones catch on with consumers visiting the site. Essentially, the new venture is a startup, but without the need to raise capital since it s self-funded by the two partners. According to Schulman, there ll be some experimentation with the site early on as they learn what both the branded firms and consumers want before making the necessary tweaks. Eventually, the data mining capability will take over as forecasting tools help create events that get consumers coming back for more. Granjon said it was essential to have a strong partner to tackle the U.S. market in an increasingly crowded field. Amazon. com earlier this month launched its members-only Web site called Myhabit, and other firms, such as Gilt Groupe, Rue La La and ideeli, have sprung up in the wake of Vente-Privée.com, which launched in Nordstrom bought flash sale site HauteLook earlier this year. We will never lose sight of the fact that Europe is our main market and that entry into the U.S. market will be done with Americans, by Americans, for Americans, so this is a second phase in the life of Vente-Privée that is starting, Granjon said. Vente-Privée.com logged sales of 969 million euros including taxes, or $1.28 billion, in 2010, up 15 percent year-on-year. Dollar rates are calculated at average exchange rates for the period concerned. Vente-Privée partners with more than 1,200 brands in a variety of sectors: readyto-wear, fashion accessories, homeware, toys, sports equipment, electronics, fine food, wine, theater tickets and holidays. Some brands available on the Vente-Privée site include Givenchy, Armani Casa, Dolce & Gabbana, Nike, Adidas and Swatch. The French site was the first, followed by launches in Germany, Spain, Italy, the U.K., Belgium and Austria. The Web site will open its sale doors in the Netherlands later this year. In addition, the firm launched Vente-Privée Rosedeal in France last year, which allows visitors to purchase vouchers, also on a time-limited basis, for use in an associated retailer s network. Granjon said at the Manhattan event that a name for the joint venture is likely to be decided by the end of June. During the presentation, he also pointed out some differences with his competitors. There are 500 copycats [in the U.S.]. They are all raising money. They quickly want to make volumes and get lots of members. They don t make a profit, he said. In comparison, Granjon said his company has been profitable since 2004, has zero debt and has not needed to raise money from venture capitalists. According to Schulman, The site is open to anyone regardless of payment methodology. He noted the private sales category is a $2 billion market today, with the potential to be a $6 billion marketplace over the next several years, based on analysts projections. For American Express, it was the idea of how to leverage its cardholder base in the tens of millions, and take information it has from servicing both cardholders and merchants, that led them eventually to Vente-Privée. The plan is to get the site up and running in time for the holiday season, although they d rather get the site and launch details done correctly, even if it means waiting until the beginning of 2012, the American Express executive said. We ll start with apparel and accessories, Schulman said, noting that there were ample opportunities to add product lines later on. Eyewear Site Owner Guilty of Fraud VITALY BoRKER, owner of luxury eyewear Web site DecorMyEyes.com, faces up to 50 years in prison after he pleaded guilty Thursday to threatening and defrauding his customers. A Brooklyn resident also known as Tony Russo and Stanley Bolds, Borker was arrested in December for running a scheme to defraud his customers by selling counterfeit and inferior quality goods. He also made unauthorized charges on his customers credit cards and repeatedly harassed them when they complained. Vitaly Borker was a cyberbully who subjected his victims to abusive, profanitylaced tirades, and threats of physical violence, said Manhattan U.S. Attorney Preet Bharara. He used fraud and intimidation as a business model, selling customers inferior goods and then repeatedly harassing them when they complained. Borker, who pleaded guilty to two counts of sending threatening communications, one count of mail fraud and one count of wire fraud, may be ordered to pay fines on top of serving jail time. According to the court, he faces fines on all counts of at least $250,000, up to twice the gross pecuniary gain derived from the crime or twice the gross pecuniary loss to the victims. The 34-year-old, who operated DecorMyEyes.com since at least January 2007, will be sentenced by U.S. District Judge Richard Sullivan on Sept. 16 at 10 a.m. ALEXANDRA STEIGRAD Photo By thomas Iannaccone Versace to Launch Kids Line By LUISA ZARGANI MILAN Versace is launching a new children s wear line under the Young Versace brand. The collection will bow for spring 2012 in conjunction with international children s wear exhibition Pitti Immagine Bimbo in Florence in June, with an event held outside the fairgrounds. This is a high-end, glamorous and colorful collection in line with the brand s essence, with a touch of rock n roll, said Gian Giacomo Ferraris, chief executive officer of Versace SpA. The label s iconic symbols, such as the Greek frieze and the Medusa, will be reinterpreted with a sense of irony and fun prints in natural fabrics. Young Versace is aimed at children from infancy to age 12. A previous children s line, called Versace Young, was discontinued in Ferraris described Young Versace as a full collection, which complements Versace s product offer, and will be produced in-house. Donatella Versace strongly supports and is behind the project, we have a state-ofthe-art technological platform and supply chain, and we directly manage our core business, he said, referring to the Novara, Italy-based plant. In five years, the executive said he expects the line to have 200 stockists and wholesale sales of 30 million euros, or $43 million at current exchange rates. We are also WWD.COM finalizing our own store concept, he said, adding the collection will be available in Versace s existing stores as well. The company is reaping the rewards of the extensive restructuring plan set in motion by Ferraris in While the Italian luxury house expects to return to the black in 2011, as per its business plan, it posted a gain in revenues and earnings before interest, taxes, depreciation and amortization (EBITDA), and substantially slashed its debt, in Last year, Versace s sales grew 9.1 percent to million euros, or $385.8 million, compared with 268 million euros, or $372.5 million, in Full Slate for June Pitti Uomo Fair MILAN Visitors to the upcoming 80th edition of Pitti Immagine Uomo should pack their comfortable shoes, as the Florence-based fair is set to host a slew of citywide events. Europe s largest men s trade fair kicks off June 14 at the Fortezza da Basso with an agenda encompassing brand anniversaries, designer debuts and special guests, building on renewed momentum in the men s wear sector. Pitti president Gaetano Marzotto said here Thursday that recovery in Italy s textile and fashion sector has been better than expected, pointing to a reported 5.6 percent growth in the first quarter, according to research by the Italian fashion and textile consortium SMI. Marzotto credited the industry s uptick to factors including increased exports and geographical reach. Exports grew 10.4 percent last year to around 24.5 billion euros, or about $34.6 billion at current exchange. As a result, Pitti organizers stressed their efforts to attract Asian buyers to the forthcoming fair. We ve not only invited Chinese buyers, but those from oil-rich countries like Kazakhstan, noted Marzotto. For those who make the trip, a series of exclusive initiatives should pep up the storied expo, as Lubiam presents its centennial capsule collection and celebratory installation at the Limonaia in the Villa Vittoria gardens on June 14. Slowear s Incotex marks its 60th anniversary with an installation at the Museo Marino Marini, and Italian designer Alberto Guardiani will preview a special collection with Wallpaper magazine to commemorate the 30th anniversary of his men s line. Among the brands scheduled to make their debuts at Pitti are Daks Sport, a new clothing and accessories range for men and women by English brand Daks; Remade in Switzerland, a capsule collection for Victorinox by Brit designer Christopher Raeburn; Pringle of Scotland s reissued archived pieces in collaboration with Central Saint Martins College of Art and Design, and an accessories collection by Vivienne Westwood and Yoox.com for the Ethical Fashion Africa project. The Westwood collection will be unveiled at an event on June 16. A new project from K-Way, and Carhartt Sketches from the new line. Work in Progress a contemporary twist on Carhartt s existing urbanwear will also make their Pitti debuts. Adding a dose of Californian creativity to the show, special guest Scott Sternberg of Band of outsiders will kick off the proceedings on the evening of June 15 with a runway show in a former cigar factory for three lines, including the spring 2012 Band of outsiders collection, as well as the women s 2012 resort collection by Boy by Band of outsiders and the latest collection, Girl by Band of outsiders. Elsewhere in the fair s main pavilions, futuro maschile, or future men s wear, an area dedicated to classic contemporary collections, will house a new section composed of selected designers including Alberto Fasciani, United Arrows, Band of outsiders, Mackintosh, Sundek by Neil Barrett and Gianvito Rossi, which will unveil its debut men s footwear collection. Sportswear will extend its presence with a new section in the Padiglione delle Ghiaia for names including G-Star, Gant and Henry Cotton s. New entries and returnees to the fair include Ally Cappellino, Barbour Beacon, Gaspard Yurkievich, Santoni Club and Sidecar. Meanwhile, sister act Kate and Laura Mulleavy of Rodarte will headline the eighth edition of Pitti W the fair s sister event that showcases women s pre-collections on June 16. Although organizers remained tight-lipped about the show s venue, the site-specific event to showcase a special collection exclusively for Pitti will also coincide with the launch of the designers first tome, entitled Rodarte, in which artists Catherine opie and Alec Soth interpret the designs through photography. After test-driving its online portal, called e-pitti, in January, Pitti Immagine will officially launch its digital platform to facilitate interaction between buyers and exhibitors at the fair. The virtual version of the show will open a week after Pitti Uomo ends and remain online for about a month. A showroom B2B area, online throughout the year, will provide buyers with the opportunity to buy collections and include around 1,600 exhibitors and 10,000 products. KERRY OLSEN

9 WWDSTYLE WEST & FRIENDS: Kanye rocks the Museum of Modern Art. PAGE 12 MEMO PAD ARIANNA V. THE TIMES: Arianna Huffington tossed another grenade in the direction of The New York Times on Wednesday afternoon, during her luncheon address at a Gilt Groupe conference. The New York Times pay wall isn t working, she claimed. It is so hedged and has so many exceptions that it should be called a hedge wall, not a pay wall. She went on to contend that a site such as the Times cannot successfully go from free to building a pay wall. The truth is, people are used to having that information for free. Huffington also discussed a common criticism of her own site: blogging without pay. The truth is, self-expression has become the new entertainment, she said. Nobody ever asks why do people sit on the couch and watch bad TV for seven hours without getting paid. Now people have different sources of entertainment. Ever the saleswoman, she also talked about how the site continues to evolve, pointing to a new section its 26th about divorce. The section launched in November. It s now the sixth most popular section on the Huffington Post. It shows how quickly you can build a brand today. AMY WICKS PHOTO BY PASCAL LE SEGRETAIN/GETTY IMAGES Rachel, Rachel! Rachel McAdams (and her Marchesa gown) had co-star Owen Wilson and director Woody Allen transfixed at the premiere of Midnight in Paris at the Cannes Film Festival. See page 10. DIGITAL PLAY: L Oréal has just made its largest digital investment to date with Demand Media, home to women s lifestyle sites such as typef.com (the new Tyra Banks Web play) and ehow. In a new approach to advertising on the Web, the company has exclusive rights to place ads on Demand s sites, but it goes much further than a straight-up media buy or display advertising. Content on the sites will be curated based upon the most popular searches online, and the advertising has been created to organically play against that. For instance, if a woman searches on Google with the question How do I apply green eye shadow to fair skin and hazel eyes? she will be directed to one of Demand s sites that has a relevant article, a collection of videos from leading makeup artists on how to apply the makeup and an ad from L Oréal about its green eye shadow. A few years ago, queries on Google were very basic, but now they are getting more and more complicated. Woman are demanding very specific, high-quality information, said Marc Speichert, chief marketing officer of L Oréal USA. We only produce beauty content that people are looking for. Eventually, we will have more episodic feature programming, too, and a series for YouTube. Speichert said the digital budget for this year is as large as the budgets for 2009 and 2010 combined, although he declined to give either dollar spending figures or to break down what percentage of the company s marketing budget would now be focused on digital. We are maximizing our investment, he added. Woman are spending quite a bit of time on these sites because they are relevant and immerse a woman looking for solutions. We have almost every single brand in the company participating in the Demand program. This is an approach to marketing to a group of very engaged women that will change the whole journey of the shopper, said Erika Nardini, senior vice president of sales and marketing for Demand Media. You will be met with very specific information, in all directions. A.W.

10 10 WWD FRIDAY, MAY 13, 2011 Salma Hayek in Gucci. Mélanie Laurent in Dior. CANNES, France We ll always have Paris, as the saying goes. Woody Allen stirred affection for the French capital among guests attending the premiere of his latest flick, Midnight in Paris, which opened the Cannes International Film Festival on Wednesday night. You can t look anywhere in Paris and not see beauty. It s a fabulous country and nationality, enthused the festival s poster girl, Faye Dunaway, who wore a white silk Dior gown and Dior fine jewelry. Sometimes, because they re so great, they can be a tiny bit arrogant, but that s OK, I forgive them. We conceived our son, Tobin, there. Hopefully Woody Allen will direct our love story one day, mused model Karolina Kurkova, who wore a midnight blue Armani Privé mermaid gown. The one thing I can t stand is all the smoking, smoking while eating, but I suppose you can t separate cigarettes from the French. Karolina Kurkova in Armani Privé. Woody s Paris Ode Opens Cannes Um, I like the Eiffel Tower best, threw out Jude Law as he marched by with his fellow jury members. Inès de la Fressange sashayed up the red carpet in an asymmetrically draped black Carven gown that screamed French chic. It was made especially for me it s like couture, purred the style maven, who managed to pull the look off in flat Roger Vivier sandals. So what s her favorite Woody Allen film? It s always the last one with him let s say Annie Hall. Léa Seydoux, who appears in Midnight in Paris, wore a pink capsleeve Louis Vuitton dress with a smocked bodice that required more than 100 hours of work in the Vuitton atelier, accessorized with Vuitton jewelry. Rachel McAdams, the film s leading lady, wore a striking red lace and nude tulle Marchesa gown and Bulgari jewelry. Melanie Griffith confessed that she couldn t remember who had designed Inès de la Fressange in Carven; Faye Dunaway in Dior; Aishwarya Rai in Elie Saab. Sometimes, because they re so great they can be a tiny bit arrogant, but that s OK, I forgive them. Faye Dunaway on the French her gown. It says in the label, you take a look, she offered, reaching behind, before being whisked into the auditorium by her husband, Antonio Banderas. Fan Bing Bing mounted the famous red steps in a red silk bustier gown handembroidered with storks, which symbolize peace in China, she said. Bing Bing had designed the creation herself in collaboration with her stylist, Chris Bu. Who knows, we may start a line together, said the actress, who over the next few days in Cannes will be promoting her latest movie, My Way. Before the screening, guests were treated to a rendition of New York, New York, by diminutive crooner Jamie Cullum, with master of ceremonies Mélanie Laurent in a black and nude silk organza Dior gown dragging jury members out of their seats to bop, including Uma Thurman in a va-va-voom whitefeathered bustier Versace gown slit up the front. Robert De Niro with Uma Thurman in Versace. Festival sponsor Chopard draped jewels and watches on Owen Wilson, Law and other jury members. Thurman wore a pair of 18-karat white gold chandelier earrings with 34 pear-shaped emeralds, plus a matching emerald bracelet. After the movie, the party continued on at the nearby waterside Majestic Beach venue, which was decorated to resemble scenes in the film, in which Wilson portrays an American writer visiting Paris who mysteriously travels back in time at the stroke of midnight to hang out with the likes of F. Scott Fitzgerald, Ernest Hemingway, Cole Porter and Pablo Picasso. Old street lamps lit areas resembling a bistro here, a Paris flea market there. Guests washed waffles, toffee apples and macaroons down with Champagne, while a live jazz band provided entertainment. A vintage clock hung over the entrance, its hands set at midnight. KATYA FOREMAN Hayek PHoto by Vittorio Zunino Celotto/Getty images; Dunaway and laurent by PasCal le segretain/getty images; kurkova and rai by ian GaVan/Getty images; De la FressanGe by marc PiaseCki/FilmmaGiC; De niro by anne-christine Poujoulat/aFP/Getty images

11 Fashion scoops BALENCIAGA S NEW DIGS: Is Balenciaga heading to Madison Avenue? Maybe, maybe not. But a company spokesman confirmed on Wednesday that the house, which has a store on West 22nd Street, will open a second retail outpost in Manhattan in early Details should be solidified by September. Christine Quinn and Elie Tahari FASHION CHAMPS: Elie Tahari s recent Emmy bag, which he created with Emmy Rossum, benefited Safe Horizon and, on Wednesday, it was time for the organization to return the honor. It recognized the designer s efforts by bestowing him with a Champion Award at its 16th annual Champion Awards at Cipriani Wall Street. Rossum couldn t be there to present Tahari with his award a Tahari-clad New York City Council Speaker Christine Quinn did the honors instead, and the designer, whose left arm was in a sling after a recent biking accident in Sagaponeck, N.Y., was visibly touched by it. I have a broken arm, not a broken heart, he said. Right now it is filled with love for Safe Horizon. Stephanie March from TV s Law & Order: Special Victims Unit hosted the night, which also honored Phillips-Van Heusen s Pamela Hootkin and Kasirer Consulting s Sun Kasirer with Champion Awards. INDUSTRY TYPES: Marc Jacobs is getting the museum treatment in Paris: Les Arts Décoratifs is gearing up for an exhibition next year devoted to the American designer s work for Louis Vuitton, viewed alongside the contribution of the French brand s namesake, who started out as a trunk maker in Pamela Golbin, the museum s chief curator, plans to showcase two key periods in fashion history represented by the two men: the industrial revolution of the 19th century, and the globalization of contemporary fashion. Castelbajac Sale Said Near PARIS Jean-Charles de Castelbajac is about to switch owners again. The French designer said Thursday an unnamed buyer was in advanced negotiations to buy a majority stake in his namesake firm from the Swedish pension fund that owns it. Castelbajac plans to acquire a minority stake, marking a return into the share ownership of a firm he founded in 1979 and whose creative direction he still heads. I have been doing this job for 40 years, and this is without a doubt the most exciting moment, he told WWD. My greatest dream today is to have the most proactive, dynamic partner who wants to transform my creativity into a business asset. The Sixth Swedish National Pension Fund, also known as the Sixth AP Fund, bought a 52 percent stake in the Castelbajac brand in November 2008 from Britain s Marchpole Holdings plc, acquiring an additional 47 percent in 2009 from Swedish design firm Atlas Design Group. Atlas holds the remaining 1 percent. The pension fund appointed Atlas chairman Peter Wahlberg to run the brand and invested some 1.5 million euros, or $2 million, in expansion efforts. Initiatives included making over the brand into two distinct collections, the PHOTO BY Paul ScHmidT BAG LUNCH: The shopping-in-the-name-ofcharity set stopped by Cipriani 42nd Street Thursday for the Madison Square Boys & Girls Club s annual Purses & Pursenalities Luncheon. Before sitting, guests used smartphones to bid silently on wares from Hermès, Badgley Mischka, Tory Burch, Louis Vuitton and others. (Staffers were on hand to guide the less than tech savvy.) Following the bidding, guests sat for a lunch which honored the charitable efforts of Asprey, Avenue Magazine s Julie Dannenberg and designer Eric Javits, some of whose bags were up for auction. Usually everything sells out pretty much, Javits said before lunch. The girls can get bargains and they love it. FACE TIME: Yves Saint Laurent Parfums has just added one more face to its star-studded cast. The L Oréal-owned brand has signed on French actress and model Marine Vacth to front a women s fragrance due out in September. The 20-year-old played a role in Céderic Klapisch s recent movie Ma part du gâteau (or My Piece of the Pie in English). Next up, she s to act in an Alexandre Arcady Marine Vacth feature film. SCHOOL DAZE: Former New York City department of education chancellor Joel Klein may have been the guest of honor at Wednesday night s Teach for America gala, but co-chairs Lew Frankfort of Coach and Mickey Drexler of J. Crew sure helped to pack the house. With the help of more than 1,000 guests, the financially minded duo racked up nearly $5 million. Frankfort and Drexler each boasted about being Bronx-bred public school kids at the Waldorf-Astoria event. Drexler joked about being older than P.S. 76 s principals now. That s not preferable but that s the way it is, he said. Klein also spoke of self reflection, telling the crowd that the gathering was the closest anyone can come to walking in on their own funeral. Dennis Walcott, who is currently in Klein s former job, described the humility he endured as a high school band member. There s nothing more degrading to one s ego than getting on three buses with a trombone, Walcott told the crowd, which included Andy Spade, Paula Zahn and Shelly Lazarus, among others. main JC de Castelbajac line and the JCDC by JC de Castelbajac diffusion line, opening a second Parisian store and launching an e-commerce site. Castelbajac said that while the partnership had been fruitful, he looked forward to developing his business even further through licenses for products and perfume. I would like to develop my store network worldwide and enter other fields like hotels with a fairly revolutionary concept I have created, he said. Sale negotiations are being handled internally and should be concluded by mid-june, the designer added, declining to provide any additional details. Castelbajac, whose iconic creations range from the teddy bear coat to Tribute frocks from Mickey Mouse to Princess Diana, has witnessed a resurgence in popularity among young consumers in recent years, designing outfits for pop stars including Katy Perry and Lady Gaga. My work is in sync with this century. The things that were considered my handicaps in the Nineties my cross-field approach, my collaborations with artists like Keith Haring and Jean-Michel Basquiat are perfect for the 21st century, he explained. Joelle DiDerich IT WAS quite THE FAMILY AFFAIR. Members of the second, third and fourth generations of Belks turned out Wednesday night at the Fashion Institute of Technology s annual blacktie gala for its Educational Foundation for the Fashion Industries fund. Even Sarah Belk Gambrell, daughter of the company s founder, make the trek to New York to support Tim and Johnny Belk as they were honored for their retail leadership. Although Charlotte, N.C.-based Belk is the country s largest privately held department store chain with more than 300 stores, it s still viewed as a family business, said chief executive officer Tim Belk. But it s a business that has evolved over the years. In many ways, we feel like a new business, he said, referring to the company s new corporate identity, logo and tag line that made their debut in October. But while the logo may have changed, Belk s core values remain the same. Every year, he said, the company donates 2.5 percent of its pretax earnings to local charities in its communities. And so the family was proud that the dinner raised $1.4 million for FIT. WWD FRIDAY, MAY 13, WWD.COM Family Business PHOTOS BY JOHN aquino Emanuel Chirico and Eric Wiseman For more career opportunities log on to WWDCareers.com. Call Subscribe now to WWD and WWD.COM COMMERCIAL REAL ESTATE Tim and Johnny Belk with Joyce Brown. Retail is getting better, we see it in our numbers and the numbers of our competitors, Tim Belk said. There s more discretionary spending, but for some, it s still difficult, especially for college students who may struggle to pay their tuition, he said. But with the money from the dinner, FIT will be able to renovate classrooms, add new classes and faculty and provide financial assistance to needy students, said Joyce Brown, president of FIT. Johnny Belk, president and chief operating officer, awarded $2,500 to two fashion design students who created sportswear and special occasion looks for spring, inspired by the colors and tag line of the new Belk brand. The sportswear design will be manufactured and sold in Belk stores for spring. Belk s Southern heritage was also evident in the entertainment for the evening. Not only was the background music all country, there was a musical performance by Joe Firstman, a Charlotte-based musician who is featured in the store s ads, and Mark Bryan of Hootie and the Blowfish. Jean e. Palmieri Spaces Showrooms & Lofts BWAY 7TH AVE SIDE STREETS Great New Office Space Avail ADAMS & CO SALES REP LA based clothing lines (established juniors and new contemporary) seeking in-house sales rep w/ min. 3 years exp. info@thelineanddot.com (800) , or fpclassified@fairchildpub.com

12 12 WWD FRIDAY, MAY 13, 2011 Kanye s Modern Night one of The More spirited sing-alongs of Kanye West s performance at the Museum of Modern art on Tuesday night came about 20 minutes into his hour-plus set. Dressed in light blue jeans, a gray hoodie and black high-tops, west bent into the mic to sing the first four notes of his 2007 single Can t Tell Me Nothing. laaaaa. laa. la-la, several hundred partygoers chanted right along, wait til i get my money right! Putting aside the song s general catchiness, it made a certain sense that the crowd - made up predominantly of young professionals - would shout along. at that point in the evening, the dinner portion of MoMa s annual Party in the Garden had given way to its more youthful, and less cost-prohibitive, after party. The power brokers in training and Masters of the Universe of tomorrow there for kanye were, in fact, in the process of getting their money right. or at least less far along in the process than the museum s more established patrons and friends who had filled the abby aldrich rockefeller sculpture Garden for cocktail hour. among those who turned out for the party, sponsored this year by Cartier, were Henry and Marie-Josée Kravis, Larry Gagosian, Michael Douglas, Jerry Speyer and David Rockefeller. James Frey, standing near one of the garden s pools, explained that a nondisclosure agreement would keep him from discussing his upcoming interview with Oprah Winfrey. he talked art instead. at MoMa, my favorite [work] to see is the Pollocks, the author said. The ferocity of it and the recklessness of it, and the abandon of it and the beauty of it. i wish i could do with words what he did with paint. would he be sticking around for kanye? f--k yeah i am, frey said. a few of frey s fellow attendees, including Leelee Sobieski and Richard Phillips, echoed the endorsement of west. as eye cocktails ended, Mayor Michael Bloomberg was chatting among a circle of guests that included Jamie Dimon. on his way into dinner, the mayor talked up the museum. This is one of the great jewels in the cultural crown of New York, he said, surveying his surroundings. so would he be sticking around for Mr. west? The mayor paused. kanye west, a press agent explained, the singer. To be fair, the use of an honorarium in reference to west might have been the cause for the confusion. Yeah, sure, the mayor said with a laugh. well, i was invited. we ll see. i m not sure actually whether i will. i m really just going to stay through dinner and then that ll be it. as guests dined on filet mignon and english pea pancakes, the garden began to fill again. several reports had the line for entry stretching down 54th street and onto fifth avenue. By the time west took the stage, at a little after 11 p.m., 1,500 additional guests had arrived. Backed by a three-piece band dressed in all white, the rapper ripped through a dozen hits, only rarely pausing to acknowledge the audience or his surroundings, with an occasional how y all feeling tonight? or New York City! Not that he needed to. Judging by the volume of camera phones and rocks glasses raised above the scrum, the audience, which by that point included Aziz Ansari, Chloë Sevigny and Scott Campbell, was clearly on his side. and that was before Jay-Z dropped in to help close out the set. i know everybody in here is cool and all, but when this drops we need everyone here to go h.a.m., Jay-Z proclaimed. Though he didn t explain it to the more genteel MoMa patrons still in attendance, the acronym stands for hard as a noun that s not exactly printable in wwd. The crowd obliged. MATTHEW LYNCH Jay-Z and Kanye West Terence Koh Justine and Jeff Koons WWD.COM For More party picture, see WWD.com/ eyescoop. Leelee Sobieski in Thierry Mugler. Jay-Z photo by Nicholas hunt/patrickmcmullan.com; all others by steve eichner Betsey Johnson and companion, both in Betsey Johnson. A New Dance The New York CiTY BalleT s annual spring Gala rarely disappoints as a sartorial sight, where tulle, lace, sparkle, elaborate trains and elegant baubles drip from partygoers limbs, earlobes and necks. But to the surprise of many revelers on wednesday night, this year s event was not only not dusty old ballet (as one audience member had groaned before the curtain rose), it was even - exciting? Guests walked the red carpet (well, Betsey Johnson sort of jigged with a heavily inked friend literally in tow) outside the David koch Theater at lincoln Center for the debut of director and choreographer Lynne Taylor-Corbett s take on kurt weill and Bertolt Brecht s The seven Deadly sins. The work features star turns by Wendy Whelan and Broadway legend Patti LuPone, who each play one half of a woman divided (whelan dances, lupone sings). The ballet s setting zigzagged across the United states, with the pair experiencing every major vice (envy, lust, gluttony, greed, etc., to mostly hilarious ends) along the way. Matthew Broderick and Sarah Jessica Parker drew the most flashbulbs in the mezzanine, with excited younger patrons of the arts periodically running up with squeals of Carrie! and begging for photos with Parker, as Broderick stood idly by. Parker, the ballet s newest board member, drew praise from ballet master in chief Peter Martins, who enthused over the artistic committee she had recently assembled. she s really done so much, sarah, Martins said. i can t thank her enough. Gabe Saporta and Erin Fetherston Martins was equally enthusiastic on the subject of lupone. Patti is an old friend of mine, he grinned. we re ecstatic she could do this. But what of the ballet itself? it was fantastic, Harry Kargman raved during intermission, before the second and more traditional half of the program (Balanchine s Vienna waltzes ) began. it s really been just a one-yawner. i was worried it would be a six or seven. kargman joined his wife, Jill, inside along with her parents, Arie and Coco Kopelman. Patti lupone is just insanely amazing, Jill kargman laughed. i ve worshipped her since i was, like, seven and saw evita. applause rang through the halls after lupone took her fourth and final bow, gigantic bouquet of roses in hand. The gala was not light on star power, and when the curtain fell, predictably, they rose. Brooke Shields chatted with Carmen Dell Orefice as they swept up the lobby s curving stairs to the makeshift, yet somehow opulent, dining room, pausing to greet Vanessa Williams and, later, Victor Garber. Gabe Saporta and Erin Fetherston circulated through the event armin-arm, chatting with Arden Wohl before sitting down to dinner. Did watching the incredibly accomplished members of the ballet company leap and twirl inspire partygoers to try out their own moves? That s a hard act to follow, Laura Benanti said with a grin. But why not. ALESSANDRA CODINHA Sarah Jessica Parker in Valentino.