WWD. Crystal Clear. PARIS Spring Prada s Long-Awaited IPO Planned for Hong Kong IN WWD TODAY. Couture

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1 PLUS: The Brits go Tory (Burch, that is) and backstage beauty trends at the couture. ROYAL SMACKDOWN The world is about to get two new royal princesses in Kate Middleton and Charlene Wittstock and the fashion battle begins. See Style, page 8. WWD Couture PARIS Spring 2011 FRIDAY, JANUARY 28, 2011 WOMEN S WEAR DAILY $3.00 BERTELLI S BOLD MOVE Prada s Long-Awaited IPO Planned for Hong Kong By LUISA ZARGANI MILAN Prada SpA is trying yet again. The Italian luxury goods house said Thursday that it will go ahead with an initial public offering on the Hong Kong Stock Exchange, although it did not specify a time frame or the size of the stake to be sold. Analysts believe an IPO could happen as early as this spring and value the company up to $9.5 billion. It will be at least the fourth time the firm has aimed for an IPO, having called off the last several attempts due to weak global markets. Our strategy of expansion worldwide, carried out with a strict costcontrol policy, led to a significant growth in revenues and profitability and further reinforced our position as one of the leaders in the luxury goods market, stated Patrizio Bertelli, chief executive officer of Prada. Strengthened by these results and confident in the future development of the group, we can now face the coming challenges with serenity and seize the best opportunities offered by the international capital markets. Banca IMI-Intesa Sanpaolo Group, UniCredit, CLSA-Crédit Agricole Group and Goldman Sachs will act as joint global coordinators and joint book runners. Bonelli Erede SEE PAGE 8 IN WWD TODAY Agent Provocateur s Intimate Plan PAGE 3 INNERWEAR: The British brand aims to double sales this year with a string of new stores and products. Catching a Rising Star PAGE 7 NEWS: Fashion Group International doles out its annual Rising Star awards. Kara Ross First Lady PAGE 3 ACCESSORIES: Michelle Obama has proven to be a firm follower of Kara Ross, wearing her jewelry on several recent occasions. Rag & Bone Guerrilla Campaign PAGE 2 FASHION: The contemporary label launches a new branding campaign as part of its growth plan. Crystal Clear Transparency PHOTO BY GIOVANNI GIANNONI revealed itself as one of the leading trends on the couture runways, a theme Maria Grazia Chiuri and Pier Paolo Piccioli demonstrated beautifully at Valentino. Here, their shimmering top in clear sequins paired with an ethereal translucent skirt. For more from Paris, see pages 4 to 6.

2 2 WWD FRIDAY, JANUARY 28, 2011 H&M Profits Drop 10.8% asia By JOELLE DIDERICH PARIS Hennes & Mauritz AB, the world s third-largest fashion retailer, posted a surprise 10.8 percent profit drop in its fiscal fourth quarter as rising purchasing costs and negative currency effects weighed on gross margins. During the three months ended Nov. 30, net income fell to 5.48 billion Swedish kronor, or $810 million, from 6.15 billion kronor, or $878 million, during the same period in Dollar amounts are calculated at average exchange rates for the periods in question. In the quarter, sales rose to billion kronor, or $4.38 billion, from billion kronor, or $4 billion, during the 2009 period. Sales were up 15 percent when calculated in local currencies and 7 percent on a same-store basis. Gross margin fell to 63.2 percent of sales during the period from 66.3 percent a year earlier, negatively impacted by a reduction in spare capacity among manufacturers, higher transportation costs and the rising prices of raw materials, including a doubling of cotton prices in These external factors have been changing from having been a strong tailwind to a headwind, Nils Vinge, head of investor relations at H&M, said during a conference call. We saw the first of it now in Q4 and it will accelerate into Q1 and Q2, but the magnitude is of course very difficult to quantify. The retailer has also been spending more on improving its product offering, in addition to committing bigger budgets to marketing, IT and online sales during the period, he added. H&M plans to unveil a revamped Web site in spring. In 2010 as a whole, group sales were up 15 percent in local currency terms and up 5 percent in comparable units. Net income rose to billion kronor, or $2.6 billion, from billion kronor, or $2.15 billion, in December same-store sales were flat as snow kept away customers in many countries. The economy improved from 2009 but in several countries the economic situation was still uncertain and difficult, stated Karl-Johan Persson, chief executive officer. Nonetheless, he said prospects for 2011 were good. We are optimistic about the future and we plan to increase sales in comparable units in 2011, Persson said. H&M plans to open 250 stores in 2011, including its first units in Romania, Croatia, Morocco, Jordan and Singapore. It will also expand its online and catalogue sales, with the launch of online sales in the United States planned for the end of the year. The retailer operated 2,209 stores as of Dec. 31, 2010, versus 1,988 on Dec. 31, Shares in H&M fell 7.3 percent to a six-month low of 212 kronor, or $32.65, on the Stockholm stock exchange. Shen Tapped for Hilfiger China Post THE TOMMY HILFIGER GROUP has appointed Steve Shen chief executive officer of Tommy Hilfiger China. This move follows the group s decision last March to assume direct control of Hilfiger s wholesale and retail distribution in China from its licensee Dickson Concepts (International) Ltd. The takeover of the business is scheduled to take place in the second half of this year. Shen was a member of the founding management team for Esprit in China, working the past eight years as Esprit s general manager based in Shanghai. In his new role, Shen will report to Fred Gehring, ceo of the Tommy Hilfiger Group. In anticipation of our takeover of the Chinese business in the second half of this year, Steve s appointment is the first and most critical step to ensure a smooth transition, said Gehring. China holds significant opportunities for our brand, and Steve s very relevant experience and entrepreneurial approach will be instrumental in establishing Tommy Hilfiger as a leading premium lifestyle brand in this important market. Acknowledging that it was premature to discuss any concrete expansion plans in the region at this point, he told WWD, We are fully immersed in plans for the takeover in late Dickson has been Hilfiger s licensee in Southeast Asia since 1997, and that deal was expected to continue until Instead, the Hong Kongbased firm will act as licensee for the brand in Hong Kong, Macau, Taiwan, Singapore and Malaysia until Hilfiger s presence in China includes 24 stores or concessions operated by Dickson and 77 run by local franchisees. Lisa Lockwood Photo by brian ZieGler WWD.COM retail Rag & Bone Takes Manhattan By MARC KARIMZADEH NEW YORK Rag & Bone s Marcus Wainwright and David Neville are putting their stamp on lower Manhattan, guerrillastyle. On Thursday, the duo unveiled a new marketing platform by plastering more than 1,000 posters on walls below 14th Street and pinning fliers against deli boards à la Dan Smith Will Teach You Guitar. Marcus Wainwright and David Neville of Rag & Bone. This isn t some glossy campaign shot in a professional studio, though. The duo handed models Abbey Lee Kershaw, Edita Vilkeviciute, Sasha Pivovarova and Lily Aldridge a digital camera, and asked them to snap themselves in Rag & Bone clothes with total creative freedom. We have always been very inspired by the girls who do the show, Wainwright said. Rather than do what every other brand does and have a highend photographer take very polished shots, we thought, Let s flip it on its head to get the girls to take over. We wanted it to be very real. The campaign, developed with Laird + Co., is more than just an advertising effort it s also a branding exercise that draws attention to the firm s just-launched e-commerce site, rag-bone.com, which features social networking and interactive elements. The site will have more images as well as video the models took with their cameras on location. The design duo also asked staffers, friends of the house, fashion editors and bloggers to submit their own images for the site, which will be showcased in a gallery. Participants include Elettra Wiedemann, Details magazine s Eugene Tong, Marie Claire s Taylor Tomasi Hill, V s Jay Massacret, Julia Frakes of Bunny Bisous and Sean Sullivan of The Impossible Cool. It s about real people and real clothes, clothes that we want people to wear and feel good in, Neville said. That formula has boded well for the designers. They created Rag & Bone in 2002, initially focusing on jeans but quickly evolving into a full women s and men s clothing collection with shoes, which were launched in The winners of last year s CFDA Award for best men s wear designer currently have five freestanding stores in New York, and wholesale to more than 400 doors nationwide. This spring, the firm is opening its first shop outside of Manhattan, a 1,500-square-foot boutique on 3067 M Street in Georgetown in Washington, D.C. We have taken some initiatives to grow internationally in the past year, after initially focusing on New York and America, which was great advice from our partner, [minority investor] Andrew Rosen, Neville said. Last year, we started to identify where we think we should put more attention. The duo is putting its bets on Japan, South Korea and their native U.K. as the first three points of expansion. Last November, Rag & Bone opened a freestanding store in Tokyo s Sasha Pivovarova Omotesando neighborhood, and took part in a partnership between the Council of Fashion Designers of America and Samsung, selling their collection in a pop-up shop at 10 Corso Como in Seoul. The designers, who declined to disclose sales projections, said that freestanding retail currently 15 percent of the total business could rise to 25 percent in the next two years. We plan to open three more stores this year, including Georgetown, Neville said, noting Boston as another potential location. We would love to do more internationally. We have very high ambitions to be a global lifestyle brand, but we don t want to push too much and go too fast. Daily Quote I am very grateful for all the times I have fallen, because I had to get up and reinvent myself to be not just me again but the new me. Norma Kamali. Page 7. Photo by DelPhine AchArD Backstage at Jean Paul Gaultier. today on WWD.CoM FASHION: See full runs of show from couture week in Paris and more looks from Ann Taylor Loft summer at WWD.com/ fashion-news. BEAUTY: See more images from backstage at the couture shows at WWD.com/beautyindustry-news. EYESCOOP: See more pictures from Fashion Group International s Rising Star Awards and Tory Burch s London store opening at WWD.com/eyescoop. BUSINESS: More financial news and daily stock movements at WWD.com/ business-news. 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. 19. 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3 accessories Michelle Obama Puts Kara Ross on World Stage By Lauren Benet StephenSon after almost 20 years as a niche jewelry designer, it seems Kara ross has been called up to the major leagues thanks to prime placement on michelle A Kara Ross wood obama s earlobes. and 18-karat gold the first Lady was puzzle necklace. first photographed wearing Kara ross earrings on nov. 26 while receiving the White house Christmas tree. Since then, she s been spotted in Kara ross designs six times, including at tuesday night s State of the union address by president obama. the earrings and bracelets obama has worn all hail from ross Gemstone collection, which was inspired by frank Gehry s hearst tower in manhattan. ross began her career in jewelry after earning her Gemological Institute of america license in She worked under a private label, garnering clients through word-of-mouth, until founding her own design house, Kara ross new york, in the company was founded on fine jewelry, but has since expanded into lower- and moderate-priced styles, as well as exotic skin handbags. regardless of the category, ross creations are always bold, art-inspired and feature mixed media ranging from moonstone to stingray to zebrawood. the designer s relationship with the oval office began in 2010 when ross was given an unexpected assignment. the Chief of protocols office saw we did wood jewelry, and they wanted to have some things made by an american artist for michelle obama to give to visiting heads of state. they sent us this big chunk of wood from the White house lawn, recalled ross. We made some pieces with it and on each one we wrote, Designed exclusively for michelle obama by Kara ross. the resulting designs included a wood heart pendant with sterling silver details, and a wooden shirt cuff bracelet with a gemstone accent. ross said of the experience, I thought, how great, with a visiting head of state, giving them a gift by a) an american artist and b) it s literally a piece that originated from the White house. I thought it was awesome that they even thought of me, to be honest with you. Soon afterward, ross sent the White house several pieces from her Gemstone collection. Within weeks, the first Lady was photographed in Kara ross earrings fashioned from sterling silver, white topaz and moonstone. unlike apparel, michelle obama s accessories haven t historically received much public acknowledgment, but ross hopes the first Lady s fondness for her designs will lend her brand wider recognition. She also believes obama s public embrace of A Kara Ross wood shirt cuff designed for the White House. her designs is consistent with the label s steady momentum. In 2003, Bergdorf Goodman was Kara ross sole retailer. eight years later, Kara ross handbags, jewelry and belts are sold at more than 100 retailers including net-a-porter, Bloomingdale s, Saks fifth avenue, and most recently, Carolina herrera. ross has tripled her category offerings and designs seasonal lines for handbags, fine jewelry, and her boutique jewelry collection Kara by Kara ross. as a result, ross designs cover a WWD FRIDAY, JANUARY 28, WWD.COM Michelle Obama wearing Kara Ross earrings and bangles at the State of the Union address. wide swath of price points, ranging from $100 to $10,000. In 2009, Kara ross new york reported sales of $2.1 million. a year later, the company reported growth of almost 60 percent, with sales of $3.3 million. If ross future echoes that of other obama fashion annointees (see Jason Wu), there s a real possibility of additional capital to reinforce the brand. the designer was hesitant to outline any grandiose plans for expansion, though she admitted shoes and a self-standing boutique could be in the far future. I d say later on maybe I could get into shoes or something like that, she said. But I also feel like I don t want to stretch myself too thin. I want to focus on what we re doing now and really making sure it s perfect. Agent Provocateur Accelerating Growth By Samantha ContI LonDon British lingerie brand agent provocateur is shifting into high gear in the u.s. and at home in a bid to double sales within the next three years. the company, whose turnover is 25 million pounds, or $40 million at current exchange, opened a madison avenue flagship last week, and has another in the pipeline on rodeo Drive in Los angeles. It will unveil its first eyewear line, with Linda farrow, for spring, and plans to launch a third fragrance, L agent, next month. this is all the culmination of three years of hard work, and all of the growth has been funded internally by the company, said Garry hogarth, the company s chief executive officer. hogarth added that Kim Winser, agent provocateur s chairman and the former ceo of pringle and aquascutum, stepped down on Jan. 1. She is so great, so talented, and she helped us to build the luxury lifestyle side of the brand, said hogarth, adding a new chairman would be named later this year. the private equity giant 3i, which is agent provocateur s majority owner, brought Winser into the company in early She has in the past served as a senior adviser for 3i s retail companies. agent provocateur s 2,500-square-foot flagship at 675 madison avenue spans two floors and features double-height windows, mirror-paneled walls, a hosiery library and a conservatory at the back. the space was formerly a temporary Jimmy Choo store, and is diagonally across from Barneys new york. the store is the brand s third retail unit in manhattan, after a shop on mercer Street and a concession at Bloomingdale s. hogarth said the company would mark A sketch of the Madison Avenue interior. the opening on feb. 13 with a party during new york fashion Week. hogarth said the u.s., the firm s second-biggest market after the u.k., was also its best-performing one. he said he was expecting a 9 percent rise in like-forlike sales in the u.s. this year. on feb. 7, a second L.a. unit after the one on melrose will open on rodeo Drive, across from the Beverly Wilshire hotel. the 1,500-square-foot store will have an art Deco hollywood glamour, according to the company, with hand-painted silk walls. By this summer, the brand will have 11 retail units across the u.s., in cities including Boston, miami and Las Vegas. hogarth said the company would also focus this year on beefing up e-commerce in the u.s. about 11 percent of the brand s revenue is generated online. agent provocateur is also looking beyond the u.s. and the u.k. for expansion and is aiming to have 100 stores within three years. the brand currently has 54, a mix of wholly owned and franchises. the brand will open its sixth store in moscow in the next few months, and is looking to open up to six stores in the countries of the former Soviet union. It is also looking for stand-alone spaces in rome and milan. hogarth said the company plans to double the size of its space at La rinascente in milan to 750 square feet, and that its unit there has the highest sales volume per square foot of any agent provocateur store in the world. the brand sells exclusively via its own retail, and hogarth said there are no plans to change that distribution strategy. the only exception is net-a-porter, which has an exclusive on about seven styles, hogarth said. there is much more in the pipeline than retail, though. on Valentine s Day the brand will have a soft launch of its third fragrance, L agent, which will be sold exclusively through harvey nichols for the first two weeks. In the u.s., the scent will launch on feb. 4 in agent provocateur s own stores exclusively. hogarth added the company still has plans to launch a capsule color cosmetics range. the Linda farrow eyewear line will consist of 10 sunglasses and seven optical frames. the glamorous sunglasses have cat eyes, twisted rope details or perforated black patent leather at the temples. hogarth s partner in growing the business is creative director Sarah Shotton, has been busy on the brand s image. for spring, the online campaign features a voyeuristic, homemade-looking film of the french model Josephine de la Baume in an apartment, walking around in her bra, panties, stockings and garters. During an interview at the boudoirlike agent provocateur showroom in Clerkenwell, London, Shotton described the spring collection as pretty but naughty and inspired by the Sixties and Seventies, with a palette of mint greens and soft pinks and polka dot prints. In addition to designing the lingerie which represents 80 percent of sales, the hands-on Shotton also keeps a watchful eye over licensees, which include Linda farrow and BJB Ltd., for agent provocateur s costume jewelry line. for fall, the brand plans to launch bed linen, including cashmere throws with suede tassels, and silk sheets and a line of stretchy, no-wrinkle nylons with a seam at the back. for some reason, men find it very sexy when traditional nylons bag and crinkle, but it s just annoying if you re a woman with a busy lifestyle, said Shotton, who has spent much of her career at the company and who was promoted last year.

4 4 WWD FRIDAY, JANUARY 28, 2011 Maison Martin Margiela Alexis Mabille Christophe Josse You re So Transparent And we mean that in only the kindest way. Many of the looks at couture were translucent, done up in everything from sheer chiffons and clear embroideries to materials that seem to have made their way from the kitchen to the runway. PHOTOS BY GIOVANNI GIANNONI AND DOMINIQUE MAITRE

5 WWDSTYLE A Tory Story Tory Burch opens second overseas unit, this time in London. See page 2. PHOTO BY DELPHINE ACHARD Cat s Meow Couture beauty looks in Paris included the bold and the striking such as Dior s violet cat s-eye, above. For more, see page 4.

6 00 2 WWDSTYLE XXXXXXXXX, FRIDAY, JANUARY XXXXXXXX 28, 2011XX, 2011 retail Tory Burch Crosses the Pond By SAMANTHA CONTI LONDON Tory Burch is transporting her American lifestyle concept to Europe with her first stand-alone store here, joining one she already has opened in Rome. Earlier this week in London, guests including Joely Richardson, Rena Sindi, John Frieda, Avery Agnelli, Laura Bailey, Ashley Hicks, Allegra Hicks, Cosima Pavoncelli, and Santa and Simon Sebag Montefiore gathered at the store on 149 New Bond Street for cocktails, and later for dinner at Hakkasan in Mayfair. We Brits can do hard-core glamour, but what this city can use is some casual glamour and that s what Tory delivers, said Richardson. The 4,200-square-foot store spans two floors and is housed in a 19th-century town house. The space was most recently a haberdashery and was the site of one of the early Louis Vuitton stores. It has moss green floors, gold leaf mirrors, orange lacquer details and a tented ceiling with a skylight. The space has a residential, Park Avenue-meets- Palm Beach feel with a bohemian twist. There are raffia rugs, plum snow-leopard curtains, purple ikatinspired wallpaper and a collection of Japanese Imari vases. Upstairs is a VIP and special-events area that has the warmth of a living room. Burch said she was excited about opening in Europe and watching the shopping patterns. Bond Street gets British as well as international shoppers, so it will be interesting to see how the shop evolves. We also plan to use these stores as a laboratory and experiment with new categories and exclusives, she said. The designer added she is mulling the idea of doing home in a small way and testing it in London. She will also be stocking some eveningwear, with an emphasis on cocktail. She said her fall presentation in New York next month would include a Inside the London store. capsule collection of eveningwear. The brand will continue to sell in the U.K. at stores including Harrods, Selfridges and Harvey Nichols. Later in the week, Burch headed to Rome to cut the ribbon on her first Italian store, a 2,000-square-foot unit on via del Babuino, the street that runs between the Spanish Steps and Piazza del Popolo. The store, she said, is very modern for us, and is inspired by one of Donald Judd s sculptures. It has been open for several months already. She said the company is looking to open stand-alone stores in Germany and France, and is waiting for the right real estate opportunities. The company, which has 36 stores in the U.S. and nine internationally, has 14 openings planned for this year, mostly in the U.S. and Asia. In the spring, Burch and her team will head to the Far East to open a second unit in Hong Kong, as well as stores in Taiwan and Beijing. In the U.S., stores are planned for Madison Avenue, Los Angeles, Dallas and Chicago. The stores in China, Europe and the U.S. are all directly operated, while the brand has partnered with Samsung in Korea and Mitsubishi in Japan for retail outlets in those markets. Staff in Licensing Deal for Just Cavalli MILAN Roberto Cavalli Group and Staff International have signed a 10-year licensing agreement for the global production and distribution of the Just Cavalli line, starting with the spring 2012 season. The deal, which ends two years of speculation, could be extended for another five years. The 30-year-old Veneto, Italy-based Staff International, which is controlled by Diesel s parent company, Only the Brave Srl, produces and distributes collections for Maison Martin Margiela, Dsquared2, Viktor & Rolf, Vivienne Westwood and Marc Jacobs. During a press conference in Milan Thursday, Renzo Rosso, founder of Only the Brave, and designer Roberto Cavalli, both tanned and dressed in black, were in upbeat moods. We re longtime friends. We re very much alike, both creative minds, and we can do great things together, said Cavalli. This is the right conclusion after years of confusion, and we can bring back the brand to its original splendor. Just Cavalli was previously licensed to Ittierre SpA, which was part of the IT Holding SpA group that included the Gianfranco Ferré and Malo labels. The sale of Ittierre to Albisetti SpA was finalized earlier this month. The latter took control of the Italian manufacturing firm after almost two years of governmentbacked bankruptcy protection. The Just Cavalli innerwear, beachwear and silk collections previously were licensed to Albisetti and will continue to be produced and distributed by that company. In 2009, Cavalli had voiced his displeasure at Ittierre s delayed deliveries, substandard production and unpaid royalties, but eventually extended the contract, due to expire last year, until (The license was estimated to account for more than a third of IT Holding s revenues). Even then, Staff International was understood to be waiting in the wings. Gianluca Brozzetti, ceo of the Cavalli group, declined to elaborate on the contractual way-out clauses. Ittierre produces the C N C Costume National, Galliano and Ermanno Ermanno Scervino collections. Rosso said Staff International can produce a fresher, more innovative and more modern product, with its unique know-how and treatments. Staff will create a new contemporary division to manage Just Cavalli, which will add entry price pieces, feature more denim items and more of the brand s iconic prints, said Rosso. In five years, the companies expect to reach wholesale sales of 250 million euros, or $342.1 million at current exchange, up from the current 80 million euros, or $109.4 million. This is a much more avant-garde group. I can experiment more, it will be a completely new product another world compared to the past, said Cavalli. A flagship is expected to open in Milan early next year. The goal is to reach 80 stores in five years, up from the current 38, in addition to developing shopin-shops, corners and online sales. Points of sale will grow to 1,700 or 1,800 from the current 1,500, with some editing to do in the meantime, said Rosso. In the next few weeks, a dedicated Just Cavalli site will make its debut on Italian e-tailer Yoox SpA, which already runs a Roberto Cavalli e-site. Staff International is expected to close 2010 with sales of 180 million euros, or $237.6 million, up from 144 million euros, or $200 million, in Only the Brave is expected to report consolidated turnover of 1.3 billion euros, or $1.7 billion, in 2010, up 5 percent from Dollar figures were converted from the euro at average exchange rates for the periods to which they refer. Rosso said Staff International is preparing a project to make Martin Margiela s MM6 line more important, and implied another designer could join the firm s stable next year. LUISA ZARGANI MEMO PAD COUNTING THEM UP: Was Lady Gaga a hit with Vogue s advertisers? How did Katy Perry fare for People StyleWatch and Elle? The all-important March fashion and lifestyle magazines are about to hit newsstands, which means the first quarter and first real benchmark is ready to be revealed, and the report card is a mixed one. Vogue did well, rising 10.6 percent for the first quarter to 619 pages, but People StyleWatch was the big winner again. The magazine posted the largest increase in paging for the first quarter (and its largest increase ever), up 46.5 percent to 197 pages, according to Media Industry Newsletter. Publisher Karin Tracy said growth came in beauty, fashion and retail with new business from brands such as Tommy Hilfiger, Dillard s and Lacoste. Elle, which will soon leave its longtime home at Hachette for Hearst, posted a 14.3 percent rise in paging to 517, and Women s Health wasn t far behind, up 11.7 percent to pages. InStyle raised its pages by 10.9 percent to Allure s 20th anniversary issue for March resulted in a 7.5 percent increase in paging to After W had a 22 percent decline this time last year, the magazine, under editor in chief Stefano Tonchi, had a 6.5 percent increase to 267 pages. Essence gained almost 6 percent in paging to 282 pages, and Glamour posted a 5.5 percent increase to pages. Marie Claire, last year s ad page increase leader, posted a flat quarter, with 259 pages. Town & Country, which will have Lauren Santo Domingo on its cover, was also flat in paging, with As for the titles seeing declines, Lucky fell 14.3 percent to pages, a big change from this time last year, when the title was up 17 percent. Self wasn t far behind, down 12.6 percent to 178 pages, Cosmopolitan declined 12.5 percent to pages and Harper s Bazaar fell 11.6 percent to Advertising at Shape was off 7.5 percent to 269.6, while competitor Fitness was down 6.7 percent to 222 pages. For the first three months, Health was down 5.5 percent to 193 pages and O, The Oprah Magazine dropped 4.2 percent to 283. AMY WICKS DVF DEPARTURE: Alixe Boyer, Diane von Furstenberg s executive vice president of global image, is leaving the company this Friday. Boyer joined von Furstenberg in 2007, overseeing areas such as public relations and special events and working with the executive team on media buys, as well as art directors and the creative team. Prior to that, she had senior marketing and communications stints at Christian Dior and Ralph Lauren. Alixe joined our company as we were embarking on a new and exciting time for the DVF brand international expansion, the launch of new products and unifying the brand, von Furstenberg said. She has been a tremendous asset. I wish her all the best in her next journey. Boyer called her time at the company invaluable, and working with the designer a privilege. While it has been a great three years, it is time to pursue new challenges and opportunities, she said. MARC KARIMZADEH

7 SAVE THE DATE beauty FORUM May 17, 2011 New York City brand. new. FOR INFORMATION ON ATTENDING Marne Friedman / marne_friedman@condenast.com FOR INFORMATION ON SPONSORING Tina LoRegio / tina_loregio@condenast.com Sponsored by

8 4 WWDSTYLE FRIDAY, JANUARY 28, 2011 beauty P&G Zeros In on Beauty Ritual By MOLLY PRIOR PROcteR & GaMbLe co. is bent on changing consumers beauty rituals to expand existing categories and gain more traction in emerging markets. We need to innovate in everything we do, bob McDonald, chairman, president and chief executive officer, told analysts during an earnings call thursday. In some cases, he said, that means introducing new product categories, in others it means expanding categories by changing consumers habits. For instance, McDonald said, In china, it s getting consumers to wash their hair more than once a week. He also cited the marketing message of Head & Shoulders as an example. Head & Shoulders works better to prevent dandruff and take care of your scalp the more frequently you use it, said McDonald. as we advertise Head & Shoulders, the number-one selling shampoo around the world, we obviously work to get people to wash their hair more frequently because they get a better end result...we do work in existing categories to expand them. that strategy is helping, slowly but surely, to boost beauty sales. Kinerase s Mass Market Offshoot S By RacHeL brown etting off another quake along the fragile fault line separating prestige and mass beauty distribution, skin care brand Kinerase has created a lower-priced offering called Dr. LeWinn by Kinerase, slated to enter selected Wal-Mart and Walgreens stores in February. Dr. LeWinn by Kinerase gets its name from Dr. LeWinn s Private Formula, a line atop the australian premium skin care market founded by the late plastic surgeon Lawrence LeWinn. the company was acquired in a $74.5 million deal in 2009 by Kinerase parent Valeant Pharmaceuticals International. Dr. LeWinn by Kinerase builds upon Dr. LeWinn s medical heritage with ingredients Valeant believes advance skin care formulations at mass such as Dynalift, intended to tighten skin; Snap-8 peptide to address wrinkles, and Kinerase s signature plant-derived wrinkle fighter and moisture booster Kinetin. Dr. LeWinn by Kinerase will bring to mass not only a dermatology perspective but a plastic-surgery perspective, said Jen Smoot, marketing director for aliso Viejo, calif.-based Valeant s U.S. cosmeceuticals division. She added it will have the latest ingredients that you find in department stores but don t find outside of department stores until three of four years later. Still, she noted that Dr. LeWinn by Kinerase products would have only two to three cosmeceutical-grade ingredients versus 10 to 12 in a Kinerase prestige product. We look forward to the launch of Dr. LeWinn by Kinerase, said carmen bauza, vice president of beauty For the second quarter ended Dec. 31, the beauty unit s net earnings from continuing operations gained 2 percent to $896 million driven by higher sales and a lower effective tax rate, partially offset by a lower operating margin. Operating margin contracted mainly due to increased marketing spending and higher commodity costs, mostly offset by lower foreign currency exchange costs and reduced overhead spending, stated the company. beauty sales for the quarter ticked up 1 percent to $5.29 billion on volume growth of 5 percent, driven by double-digit growth in developing regions. Organic sales gained 3 percent. P&G s overall net earnings from continuing operations increased 5.8 percent to $3.33 billion, or $1.11 a diluted share, from $3.15 billion, or $1.01, a We should have growth plans to achieve goals and strategies without acquisitions. BOB MCDONALD, PROCTER & GAMBLE CO. year earlier. Sales grew 1.5 percent to $21.35 billion, up from $21.03 billion in the prior-year period, driven by 6 percent volume growth. Organic sales gained 3 percent. P&G said that businesses representing about 60 percent of net sales maintained or grew market share. for Wal-Mart. the arrival of the line at Wal-Mart reflects our commitment to listening to our customers and providing them with access to the quality brands that they want at affordable prices. Dr. LeWinn by Kinerase s 10 initial products will be priced from $10 to $35, while most of the products in Kinerase s prestige line sold at Ulta and Sephora and its Pro+therapy line aimed at physicians are at least double that amount and regularly top $100. according to Smoot, probable hero products in the Dr. LeWinn by Kinerase line are the Instant Dermal Wrinkle Filler she described as the first product in mass with an instant wrinkle-erasing effect, and three Lift & Resculpt products: anti-wrinkle Night cream, anti-wrinkle eye cream and Serum XK. Kinerase, which has registered annual sales in the $21 million to $27 million range, has a lot to gain from a successful mass launch. Industry sources forecast Dr. LeWinn by Kinerase could generate at least $15 million in first-year retail sales, and Kinerase could benefit substantially from a higher profile. Smoot estimated 10 to 20 percent of skin care shoppers are currently aware of the brand. Olay Professional Pro-X Advanced Cleansing System For the first half, net earnings from continuing operations gained 3.9 percent to $6.41 billion, or $2.13 a diluted share, from $6.18 billion, or $1.98, from a year earlier. Sales gained 1.6 percent to $41.47 billion. For the six-month period, beauty s net earnings gained 4 percent to $1.73 billion, while sales rose 1 percent to $10.22 billion. In the beauty business during the quarter, volume increases in the firm s retail hair care business were in the high-single digits, with asia leading the growth. both Pantene and Head & Shoulders shipments rose more than 25 percent in china, the Philippines and India. In brazil, shampoo value share increased more than 1.5 points with the launch of Pantene and Head & Shoulders shipments increasing more than 50 percent, said P&G. Female skin care grew at a double-digit pace as Olay continued its global sprawl. For instance, Olay shipments to Russia increased by roughly 80 percent. In the U.S., Olay increased in the high-single digits behind the launches of Regenerist Night Resurfacing elixir and the Olay Professional Pro-X advanced cleansing System device. Prestige products saw their volume fall in the low-single digits. Skin care, however, rose at a double-digit clip led by growth in china, where the SK-II skin care range gained about 60 percent. During an investor meeting in December, McDonald emphasized P&G s aim to grow vertically and horizontally. Following the meeting, caris & co. analyst Linda bolton-weiser wrote, He outlined strategies for pursuing white space growth opportunities in the next five years that should enable P&G to grow 1 to 2 points faster than global market growth. P&G is also integrating to operate as one company, which should help it penetrate new markets in multiple categories more quickly and with higher [return on investment]. asked on thursday if P&G is looking to add brands to the fold, Jon Moeller, chief financial officer, said, I continue to believe that a large acquisition while you would never rule it out completely is not a highly probable event. McDonald added, We should have growth plans to achieve goals and strategies without acquisitions. The Dr. LeWinn by Kinerase skin care range. In search of a broader audience at mass, however, the risk is that Kinerase could undermine its prestige sales. Frédéric Fekkai is the poster child for the perils of breaching the mass-class divide. Sephora dropped Fekkai when the P&G-owned hair care brand decided to head to target and Wal-Mart. Sephora declined to comment on whether Dr. LeWinn by Kinerase would impact Kinerase s standing at its stores. Smoot contended Kinerase s mass and prestige businesses aren t mutually exclusive. She said Dr. LeWinn by Kinerase would help grow the overall Kinerase base. Our attempt is to continue to build all these lines. I think that multiple lines can exist, said Smoot of the mass, professional and prestige branches of Kinerase. Smoot said Kinerase s entry into the mass market reflects the reality of multichannel shopping and current economic conditions. We want to be able to speak to women no matter what channel they are shopping in, she said. the women that we have spoken to say, I used to buy everything at Sephora. Now I buy my c8 [Kinerase bestseller], but I can t buy everything there.

9 WWDSTYLE FRIDAY, JANUARY 28, Wild At Heart PARIS How were the out-of-this-world hair and makeup looks conjured up for couture-clad models on catwalks for the spring 2011 season, which ended here Wednesday? At Valentino, David Hamilton photographs inspired Guido Palau for the coifs. He put Redken thickening lotion on models hair, parted it in the center and wove two braids along the sides of heads. At the back, Palau fashioned neat buns. It s very Seventies, romantic and young, he said. Another artist French illustrator René Gruau was channeled for beauty (and fashion) at Christian Dior. His drawings were very unfinished. It was sometimes a stroke and that was the whole hairdo, said hairstylist Orlando Pita. So what I am trying to do is put the hair up, to kind of give those painterly strokes with the brush. I don t want to roll the hair. I don t want to bun it. I don t want to do a French twist. I don t want the old-fashioned ways of putting hair up. It s all about flowing movement, and then everybody has different versions of that. Likewise, models at Dior had varied makeup looks created by Pat McGrath, save for their mouths, which were all painted the same orange red hue. Skin was paled down and black eyeliner applied to peepers. She called the result supergraphic, super-dior. Meanwhile, at Giorgio Armani Privé, precious stones were the starting point for both the fashion collection and the makeup, created by Linda Cantello. Opting for a modern take on couture, for lips she eschewed the traditional red and went instead for purple, made with a mix of an Armani lipstick and a pigment from the brand s spring collection. Faces were primarily matte, save for a small crystal applied on each model s mouth. Just to catch the light, she said. Oribe devised hairdos that wrapped around heads. It s kind of crisscrossed and just very polished and simple, he explained. To achieve the look, Oribe used his eponymous brand s Soft Lacquer and Superfine Hairspray. JENNIFER WEIL Clockwise from top right: Jean Paul Gaultier; Giorgio Armani Privé; Valentino; Jean Paul Gaultier; Giorgio Armani Privé. PHOTOS BY DELPHINE ACHARD It s very Seventies, romantic and young. GUIDO PALAU, AT VALENTINO

10 6 WWDSTYLE FRIDAY, JANUARY 28, 2011 beauty La Prairie s Infusion By MATTHEW W. EVANS LA PrAiriE is LookiNg to charge up with Cellular Power infusion, an antiaging treatment product designed to boost skin repair and be used with existing regimens. The item, which includes four 7.8-ml. bottles in a white leather box and is priced at $475, is meant to last 30 to 40 days, according to Lynne Florio, president of La Prairie. it enhances the natural cellular renewal cycle, she said. it s also intended to protect epidermal stem cells. Each bottle has a silver base, and, in a novel concept, when it is twisted, the formulation begins to turn a lilac hue a process called the accelerant activation. Cellular Power infusion was launched with a bit of fanfare at the brand s counter at Bloomingdale s 59th Street flagship last week. That afternoon, customers were introduced to the product, and it was the same for a bevy of editors and bloggers in the evening. This is a new step in cosmetics products and in the company, said Patrick rasquinet, president and chief executive officer of La Prairie group, who came in from Switzerland for the launch event. innovation brings a lot of energy to the company. Cellular Power Infusion [La Prairie has] the highest repeat business in cosmetics [at the store]. it is due on shelves Feb. 1 at Bloomingdale s, Bergdorf goodman, Neiman Marcus, Nordstrom and Saks Fifth Avenue. A worldwide rollout is to follow in six months. Any event is about customer interaction, said Howard kreitzman, vice president of cosmetics and fragrances at Bloomingdale s. What s most meaningful for us is [being] able to work with La Prairie to celebrate something very unusual. Michael gould, Bloomingdale s chairman and ceo, agreed, saying, La Prairie is one of the most important resources we have. its upscale positioning is [key] to the brand s strategy. They ve kept true to that. Speaking on the topic of loyalty from upmarket customers, gould pointed out that La Prairie has the highest repeat business in cosmetics at the store. The product employs Swiss snow algae to protect the skin, a peptide to foster mitochondrial DNA repair and phyto stem cell extracts of red grapes. Cellular Power infusion also includes panthenol, glycerol, sodium hyaluronate and extracts of grape seed and papaya. The item could generate $10 million in first-year retail sales in the U.S., industry sources speculated, adding the global 12-month total may reach $50 million. Photo by John Aquino Swarovski Unveils Aura Scent By NiNA JoNES LoNDoN Swarovski is taking its first plunge into the world of fragrance with Aura by Swarovski, due out this spring. The crystal maker created the women s scent with its beauty licensee groupe Clarins. The inspiration was all the grace and the magnetism of light, according to Joël Palix, president of Clarins Fragrance group. The soul of crystal is light, continued Markus Langes-Swarovski, a member of the Swarovski board and the great-great grandson of the company s founder, Daniel Swarovski. Langes-Swarovski explained Swarovski has for about one decade been expanding its business beyond crystal. Michaelgould, bloomingdale s Swarovski s fragrance and makeup items. Aura is the perfect visual expression for the soul of crystal, he added. Swarovski and Clarins executives went through 2,000 iterations of the juice before deciding on the final one. The original brief, said Langes-Swarovski, was to create liquid crystal. We wanted to identify the smell of crystal, in a way. Pierre Aulas, olfactory artistic director for Clarins Fragrance group, imagined the liquid crystal as creating a magic aura and prism of energy. Firmenich s Jean-Pierre Bethouart and olivier Cresp composed the fruity floral incandescent juice. it combines notes of amber, benzoin resin and white musk, along with what Aulas described as rays of juicy lychee, pure white tuberose and pink pepper that punctuate the scent. Aura s refillable bottle is a narrow glass tube set in a metal base, with a metal top that encases the flacon. A single asymmetric crystal sits on the top. We basically wanted to create something which is not only a pure crystal-decorated flacon, said Langes-Swarovski. Photo by John Aquino We can really play with the bottle, added Palix. We will have a lot of limited editions because i think there is a collector s business around Swarovski. Aura s outer packaging is made from recycled, recyclable cardboard and doesn t contain inserts. Aura s print campaign (including single and double pages) was shot by Craig McDean in New York and features model Vlada roslyakova bathed in an ethereal pink light, while a prism of light shines from the fragrance s bottle. McDean also shot the television campaign, which will appear as 10-, 15-, 20-, 25- and 30-second spots. Aura is to launch first in the U.k., on March 3, exclusively in Selfridges before rolling out nationwide on March 31. Then on April 1, the fragrance is to be introduced in the rest of the world, save China, which is to start selling the scent in September, and the Americas, which are to get Aura in At launch, the fragrance should enter some 10,000 doors, including approximately 500 Swarovski stores, according to Palix. The scent will come as 30-, 50- and 75-ml. eau de parfum sprays, which will retail in the U.k. for 44 pounds, 59 pounds and 71 pounds, or $68, $91 and $110 at current exchange, respectively. The 50-ml. refill is to be 46 pounds, or $71. Ancillaries include three makeup jewels, crystal-studded pendants containing glosses for the lip, face and body, whose formulas are made with micronized Swarovski crystal and Crystal Shine iridescent pearls. These will retail for 48 pounds to 55 pounds, or $74 to $85. For the Asian market exclusively, Aura will be an eau de toilette in slightly different packaging than that of the eau de parfum version. Clarins executives would not discuss sales projections, but industry sources estimate Aura will generate between $50 million and $60 million in retail sales in its first 12 months. Clarins Fragrance group and Swarovski signed a 10- year license in 2008 to develop fragrance, cosmetics and beauty accessories under the Swarovski Beauty name. What i personally love about this first launch is it has modernity and yet it feels timeless, said Langes-Swarovski. Clarins and Swarovski really share the same values. Jonathan Zrihen, president and chief executive officer of Clarins groupe USA, said the rollout will be staged over a two-year period to make sure the fragrance introduction has maximum impact in each hemisphere. Also by starting out in Asia, Europe and the Middle East, Clarins will be taking advantage of the strength of the jewelry brand in those areas. Zrihen noted the perceptions and positioning of Swarovski is more upmarket in Asia. Both the positioning and stores in the U.S. are being upgraded, he said, noting that by 2012, the renovation is expected to be up to speed. We want to be part of the repositioning, he said, we want to make sure that we introduce the fragrance at the same time they roll out the new stores. it s a prestige brand with mass appeal. Zrihen said Clarins will launch the fragrance in the U.S. in a certain number of Swarovski s more than 200 American stores, plus specialty and department stores. WithcontributionsFroMJenniFerWeil

11 WWDSTYLE FRIDAY, JANUARY 28, A Shift to Upscale Offerings at Mass new YorK Buoyed by the success of premium skin care, mass merchants plan to further increase upscale assortments while adding enhanced services. That s not to say, however, there won t still be a focus on value pricing with more space allocated to inexpensive brands, too. according to data presented during The npd Group s Hot off the press conference, beauty in the food, drug and mass arenas experienced 3 percent sales growth in 2010, versus a flat makeup sales posted the biggest increase, followed by skin care, while fragrance sales declined slightly. Skin care has, indeed, been a growth engine for the mass market for the past three years as women felt more confident buying the brands, especially the olay franchise, in a self-service setting. If many of the top visionaries in the field have their way, however, shoppers are going to find more assistance at the A Lewis drug location in Sioux Falls. local drug or discount stores. duane reade president Joe magnacca predicts that providing advice is one of the top three trends for the remainder of Beauty adviser knowledge remains the key to success. With information overload for today s consumer, the beauty adviser must be able to help her understand what products will work for her, he said. He also believes that not only can in-store experts help edit the shopper s decisions, but retailers owe it to consumers to do their homework and offer the best of breed in assortments. Today s shopper wants the best of everything. She doesn t want to have to stay within one brand to get all her products if she feels she is settling on any particular product in the range, he explained. To give shoppers what they want, duane reade just added two lines to its successful Look Boutique H2o and Gosh, a trendy line from denmark. parent company Walgreens also Compared WITH a 10 percent decrease in prestige fragrance sales in 2009, one might say 2010 was a sort of banner year. Total prestige fragrance sales last year were $2.5 billion, up 1 percent from 2009, according to The npd Group. The success rippled through the entire prestige beauty market, with skin care catching fire, growing 8 percent to $2.7 billion, while sales of makeup the largest of the three businesses rose 3 percent to $3.2 billion. Looking at the 4 percent growth in the total prestige beauty market to about $8.5 billion and the 11 percent positive swing in fragrance sales, Karen Grant, vice president and global industry analyst at The npd Group, peered into her crystal ball and said, positive. [Beauty] is off to a good start. discussing trends in an interview after presenting 2010 beauty sales to top industry executives Tuesday at The plaza, Grant noted that by June of last year, skin care sales surpassed pre-recession levels. Thursday she added that the upturn in just borrowed a page from duane reade and stocked Borba, a line made popular at mass in duane reade s Look Boutiques at select Walgreens. In particular, Borba plays off another big trend at drugstores: combining beauty and wellness. our customers see us as a valued destination for health and wellness needs, from the trusted standby beauty staples to the latest innovations, said Shannon petree, Walgreens divisional vice president and general merchandise manager for beauty. Borba has created a buzz in the beauty world and among celebrities. now, we re excited to bring these items to the masses so everyday women can achieve total beauty in a healthy, unique and affordable way. For magnacca, it isn t only about the products, but presentation, too. He thinks more retailers will install product fixtures that help elevate a brand or a category to new heights. That is certainly a goal of Lewis drug s president and chief executive mark Griffin who recently oversaw the launch of a new prototype for the regional chain. The store sports a beauty boutique with wood flooring and upscale displays. The beauty department further burnishes the image of the store which also has a four-seasons room with a retractable roof to merchandise items such as Christmas trees or garden items. There is also a walk-in cooler with minikegs and chilled wine. The kitchen department has granite-like counters and brands like Cuisinart. Griffin said the store got off to a strong start over the holidays and the momentum built in december with a promotion called a Sunday block party. Invitations with one-day gift certificates were mailed to consumers near the store and the event featured activities, samples and goody bags. Griffin said his 32-store chain aimed to do something special with the store and break out of the cookie-cutter chain drugstore mold. overall, Lewis operates 32 drug stores in South dakota, Iowa and minnesota. already many efforts in beauty are paying off with frontend sales on the rise. rite aid, in fact, just reported a 2.2 percent increase in comp-store, front-end sales. as the ambiance of the local drugstore improves, buyers hope to see even more lines arrive. There s optimism lines will extend distribution to mass sometimes even via acquisitions such as Coty s purchase of opi. To get fragrance sales pumping again, some buyers suggested less push on celebrity and more on building true brands with big marketing support and the chance of longevity such as Stetson. FAYE BROOKMAN milan Sephora is ramping up its Italian expansion plans. The LVmH moët Hennessy Louis Vuitton-owned perfumery is continuing its quest to snare the retail leadership of the highly fragmented Italian beauty market. To this end, the French beauty chain said this week it intends to bolster its presence further with a 2,691-squarefoot store inside the city s central train station. Slated to open in march, the store will join brands such as armani Jeans in the recently renovated station said to receive 320,000 visitors a day. an additional store is scheduled to follow later this year in the Corso Vercelli shopping district. The retail expansion plans to follow in the footsteps of Sephora s first Italian flagship unveiled in march and located on one of milan s busiest shopping streets, Corso Vittorio emanuele. The beauty chain has 102 stores in Italy. To spearhead its latest plans, Sephora Italy has appointed antonio Ferreira de almeida as managing director. de almeida was most recently managing director of Sephora portugal and succeeds roberto Forcherio, who left the company. KERRY OlsEN Outlook Brightens for Prestige Beauty This year, new products had a halo effect, benefiting existing products. KAREN GRANT, ThE Npd GRoup photo by stephen leek Sephora s Milan flagship. Sephora s Italy Push Hits Milan makeup began around mother s day and fragrance by late summer. In the last few years, new products were selling at the expense of existing products, said Grant. Consumers did an either-or. This year, new products had a halo effect, benefiting existing products. When it came to brands, notable introductions included the Bleu de Chanel fragrance launch for the fall season, followed by Gucci Guilty and Chance eau Tendre, a spring entry. Chanel, Clinique and Lancôme were highlights of the makeup category, while Clinique and the estée Lauder brand swept the top three spots in skin care. This year, the U.S. skin care market has to contend with strong comparative sales from Grant expects all three categories to do well, in 2011, with skin care perhaps up 4 percent and makeup maybe up 3 to 5 percent. Fragrance, she said, could pick up 1 to 3 percent, possibly due to easier comparisons from a less-than-stellar (but still positive) That will depend on the performance of fragrances launched later this year, Grant remarked. M.W.E.

12 00 8 WWDSTYLE XXXXXXXXX, FRIDAY, JANUARY XXXXXXXX 28, 2011XX, 2011 eye Europe s most famed royal courts are about to add two very fresh faces, both sure to draw comparisons to their forebears and each other. WWD took an early look at the coming princess prizefight. Battle Royale It s been 53 years since Grace Kelly married Prince Rainier III, thereby ascending from Hollywood royalty to the real thing, and 29 years since Diana Spencer walked down the aisle at St. Paul s Cathedral to wed Prince Charles. So the world seems a bit overdue for a new variation on that classic fairy-tale ending: the commoner who becomes princess. In the coming months, Princess Grace of Monaco and Princess Diana may finally begin to cede their spot in the public imagination to a new generation of royal women (and their wouldhave-been daughters-in-law). After Kate Middleton and Charlene Wittstock marry their princes Prince William of Wales and Prince Albert II of Monaco, respectively fashion folk will wait to see whether they ll be setting the trends or simply following them. The jury is still out, and so far designers have been diplomatic in their evaluations of both women s styles. Giorgio Armani has been dressing Wittstock a onetime Olympic swimmer for her native South Africa with a lean build and toned shoulders for the past two years. Not surprisingly, Mr. Armani is full of praise for the princess-to-be. Tall, sporty and at the same time sophisticated, Charlene knows how to wear even the grandest evening dresses with the nonchalance and freshness of youth, he told WWD this month. Karl Lagerfeld, who knows Wittstock well and has photographed her for several magazines, says he s hopeful the beauty will have a positive impact on her new country. I think she wants to give some sparkle to Monaco, he says. A place like this needs a beautiful princess, and she s very handsome and stunning. The tall, slim Middleton, meanwhile, has already been forging something of a reputation as a fashion plate: Her blue Issa dress spawned myriad cut-price knockoffs, and versions of the high street designs she wore for her recent engagement photos will be reissued. Armani calls Middleton so discreet and straightforward, but highly aware of fashion trends. He adds: She will have all the time in the world to become fully integrated into her new role and choose the most sophisticated and precious dresses and outfits for official occasions. Lagerfeld says Middleton is very different from Princess Diana and seems very well balanced and a happy person. She is chic in a way the position needs. Let s wait and see. Below, the tale of the tape for the soon-to-be princesses. Queensberry Rules, of course, apply. SAMANTHA CONTI, LONDON, AND CHANTAL GOUPIL, PARIS Kate Middleton, age 28 vs. Charlene Wittstock, age 32 An unapologetically classic dresser, Middleton is a tweed-and-flatboots or jersey-wrap-dress-and-discreet-jewelry kind of gal. She s clearly a considered consumer, too: She aggressively shopped her closet for the Mario Testino engagement photos, sending out a Make-do and Mend message meant for Britain s age of austerity. In one photo, she wore a white Reiss dress that cost 159 pounds, or $253. The white winter coat that she frequently wears is also old Reiss. In the other Testino photo, Middleton donned a white silk, vintage-inspired blouse from Whistles autumn 2008 season. Prince William and Kate Middleton in their engagement photo. Style The statuesque swimming champion has certainly made strides since her first, disastrous appearance at Monaco s Red Cross Ball in Wearing a green muslin dress she d borrowed from a friend and sporting red fingernails that she d painted herself, Wittstock admitted to Tatler: I looked like a Christmas tree. She didn t do much better the following year, when she wore a long, pink one-shoulder dress and undone hair to a Monaco charity event in May But then, in 2008, Armani and his team took her under their wing, made her an ambassador and began dressing her for official events. Since then, she s been working a sober, elegant and sophisticated look, wearing long, strapless dresses with bustiers or draping, and she s not shy about showing off her muscled shoulders and creamy décolleté. For more relaxed events, the future princess has also worn Ralph Lauren dresses and sporty scarves. Although Bruce Oldfield has been widely tipped as the man to create Middleton s wedding gown, it now appears there is another very serious contender: The London-based bridal designer Phillipa Lepley. Although Lepley, who designed wedding gowns for British celebrities including Ulrika Jonsson and Davina McCall, has always been in the running, the latest buzz in London is that she will design the dress. Potential Wedding Gown Armani let slip during a news conference at Milan Men s Fashion Week earlier this month that he would be designing Charlene s dress for the wedding. He didn t elaborate, and the news was not confirmed by his press office. Prince s Palace of Monaco. Middleton has been snapped in outfits by Issa, Alice Temperley, Collette Dinnigan and Diane von Furstenberg, and the high street s Reiss, Whistles, Kew, and BCBG Max Azria. She s also a fan of the tailored jackets from English designer Katherine Hooker. Favorite Labels Industry sources tell WWD that the folks over at Dior are aggressively courting Wittstock in a bid to fill her closet at her new home in Monaco s 12th-century palace. So far, she s swapped her poolside gear for some serious Armani chiefly Armani Privé and has hinted that he might be the man to design her wedding gown. She also wears Ralph Lauren and Michael Kors, and told Tatler that her fashion icon is fellow South African Charlize Theron. Not surprisingly, Middleton favors practical carryalls from Longchamp and Bric s. She has her long, chocolate brown hair and grooming done at Richard Ward in Sloane Square a favorite of Chelsea socialites and TV presenters and wears hats by Philip Treacy. She favors small jewelry and, in particular, pieces by Patrick Mavros, whose designs are inspired by the wild animals of Africa. Grooming She doesn t do much with her hair except pull it into a chignon once in a while. As far as jewelry is concerned, she often wears Repossi earrings. Her engagement ring, a pear-shape diamond, is also from the Italian jeweler. Charlene Wittstock in Armani. Kate Middleton in Issa. She will inevitably be compared to Diana, who found her own fashion feet with help from Anna Harvey, a former deputy editor of Vogue who is credited with helping to update her style from Sloaney to sophisticated. Middleton, who hasn t had a public misstep since she began dating Prince William, risks treading safe fashion ground for the rest of her life, which would result in a collective yawn in Britain and abroad. Future Prince Rainier III and Princess Grace Monaco is a Frenchspeaking country, and her French needs work. She resembles Princess Grace, but she will be constantly compared to Prince Albert s mother and that could be deeply annoying. Also, she can tend to look stiff and slightly uncomfortable in designer duds. She needs to relax and smile more. She will be a princess, after all.

13 WWD friday, january 28, WWD.COM Chanel Elie Saab

14 6 WWD FRIDAY, JANUARY 28, 2011 WWD.COM Franck Sorbier Rabih Kayrouz Gowntown Express Both Franck Sorbier and Rabih Kayrouz offered up creative and sculptural dresses many which would look magnificent on the red carpet. Franck Sorbier: What Franck Sorbier lacks in industry clout, he makes up for with creativity. The French designer, who has been carving out his couture niche for more than a decade, told a series of short stories with a display running the gamut from a chic black cocktail suit to an ethnicinspired teepee dress. Standouts included a black peplum jacket and pencil skirt ensemble made from the densely textured, compressed fabric that is Sorbier s hallmark, and a draped evening gown in deep red and black tie-dyed silk. Rabih Kayrouz: Couture doesn t have to be chichi. Using workwear as his base (with a nod to Irving Penn s book Small Trades ), Rabih Kayrouz took his craft to the field and the butcher shop, conjuring pure, sculptural silhouettes that were simultaneously functional and pastoral while modern in feel. Colors tripped from cream to forest green, midnight blue and rich shades of red, orange and pink. Voluminous silk apron dresses with leather straps were unusual and compelling. The peasant dress was also revisited through noble lenses, such as on a sculpted, waistcinched pleated dress in scarlet silk, or knitted versions in a tree-bark jacquard motif, which was lovely. The designer said he liked the idea of making couture more wearable, of bringing the emotion of couture to the street, and vice versa. Streetwear this was not, but it made for a refreshing departure from the sequin and fluff peacock attitude that couture is so often associated with. PARIS Couture Spring 2011 FOR MORE COUTURE COVERAGE, SEE WWD.com/ FASHION-SHOWS-REVIEWS. PHOTOS BY GIOVANNI GIANNONI FASHION SCOOPS NO-SHOW CONTENDERE: Naomi Campbell was nowhere to be found Thursday when a brusque New York State Supreme Court Judge Judith Gische told the supermodel s lawyers that they have until Feb. 24 to respond to accusations, including perjury, in the breach of contract case filed against the supermodel by plaintiff Moodform Mission. In the meantime, the no-nonsense judge will deliberate on the plaintiff s summary judgment request and whether to dismiss Campbell s countersuit against her former agent Carole White, who was a principal in the cosmetics firm. The court will also rule on the defense s request to have oral arguments held in private and to have the transcript sealed. If Thursday s hearing was any indication, the case isn t going to be decided any time soon. This may be a case of no fine wine before it s time, the judge told attorneys for both sides after hearing initial arguments. According to Moodform s lawyer Dan Bright, the judge s ruling on these matters could take months. SAKS AND SANCHEZ: Hugo Boss pulled out all the stops Wednesday to entertain more Boss Chuck Lucia, Mark Sanchez, Saks Tom Ott and Mark Brashear. than 60 top Saks Fifth Avenue executives at a dinner in a penthouse space in the Trump SoHo hotel, including general managers of Saks stores from around the country, in town for a company conference. The night s guest of honor was New York Jets quarterback Mark Sanchez, who regularly wears Hugo Boss but is not officially affiliated with the brand yet. I m one of those guys who is I think the expression is a long-suffering Jets fan, said Ron Frasch, president and chief merchandising officer at Saks, who was clearly excited to hang with the gridiron hero. However, he joked that Jennifer De Winter, Saks executive vice-president of stores, had whispered, Who s Mark Sanchez? In between a musical performance from Ashford and Simpson and a promotional video for Hugo Boss featuring Bravo s Andy Cohen, Hugo Boss Americas chief executive officer Mark Brashear exhorted his Saks guests to boost Boss sales to more than $1 million per store this year. He noted the brand s sales were up 23 percent last year at Saks. Sanchez declined to answer any questions on the record (on the advice of his manager). POWER COUPLE: A sun-kissed Cameron Diaz dazzled guests at a cocktail party at Elie Saab s Paris home on Wednesday night marking the wrap-up of couture week accompanied by her towering beau, New York Yankees star Alex Rodriguez. I love Paris, enthused Rodriguez, adding that earlier in the day he and Diaz had gone to see the Jean-Michel Basquiat exhibition at the city s Musée d Art Moderne. His work is just amazing. The third baseman looks forward to the start of baseball season on April 1. So I have been training pretty hard, he said. Jokester Diaz dished out surfing tips, meanwhile. You have to paddle, paddle hard, she laughed. The actress has just finished shooting the comedy Bad Teacher, which also stars Justin Timberlake. Numero editor in chief Babette Djian nipped into the party briefly, in between shooting with Karl Lagerfeld. Meanwhile, Middle Eastern songstress Elissa entertained guests with some of her hits and then danced the night away with other revelers. GUCCI S GRAMMY TIME: Gucci is planning a triple threat for Grammy weekend, with creative director Frida Giannini, an avid music fan, jetting to Los Angeles on Feb. 11 to be an honoree at UNICEF s first annual Women of Compassion luncheon at Colleen and Bradley Bell s home. Jennifer Lopez will present the award, with Rihanna and Mary J. Blige as honorary chairs. The next day, Giannini will co-host a pre-grammy brunch at Soho House West Hollywood with Shawn Carter, aka Jay-Z. On Grammy Sunday, Giannini will attend the awards show at Staples Center to showcase Gucci timepieces and jewelry s three-year partnership with The Recording Academy, for which Giannini has designed a limited edition collection of Grammy-inspired pieces, proceeds from which will support the restoration and preservation of musical recordings in the Grammy Museum. Her visit marks the first time Giannini has come to L.A. in an official, name-on-the-invite capacity since hosting a Children s Action Network fashion show at Michael and Eva Chow s home in November 2005.

15 FGI Awards Rising Stars By marc KarimZaDeh new YorK Being a rising star can be a double-edged sword at least according to norma Kamali, who was a keynote speaker at Fashion Group international s rising Star awards Thursday. a rising star award is a good thing, and it may even be a bad thing, she said. What happens if you don t become a star? is that going to be the end of it for you? i never wanted to be a star and never really was or am a star. i am just my own little constellation up in the sky, doing my own thing. For those of you who die to be a star, you probably will for a certain amount of time, but how long that will be? she added. Stardom has its highs and lows, and it could be a curse to a lot of people. Fabiola Arias, Catherine Malandrino and Bradley Scott. PHOTOS BY JOHN AQUINO Before venturing too deep into Jacqueline Susann territory, however, Kamali had a few pointers for the fresh talent on hand. Longevity has its ups and downs, and its periods and times that are very frightening, she said. i am very grateful for all the times i have fallen, because i had to get up and reinvent myself to be not just me again but the new me. i love every experience and every frightening experience i have had, and am enjoying every invention and reinvention. men s apparel winner Loris Diran learned two crucial lessons while working for Kamali early in his career. Trust your instincts, and the most important thing in this industry is to be a survivor, Diran said. The women s apparel award was a tie between Fabiola arias and Bradley Scott, who shared some of his early career lessons. You have to be true to yourself and to others, Scott told the audience, which included Lauren Bush, Prabal Gurung, catherine malandrino, ippolita, Men s apparel winner Loris Diran. Linda Fargo, Kim Vernon, maria cornejo, eddie Borgo and Julie macklowe. Jennifer Fleiss and Jennifer hyman of rent the runway took home the retail award. The accessories trophy went to marc marmel, and fine jewelry to Betty Lou moscot of Blu Betty Lou moscot. in the beauty category, Siddharth Shah of Givaudan Fragrances corp. was named winner of the fragrance corporate award, while harold Zimmerman of Votre Vu was the emerging fragrance entrepreneur. Koray Duman and Laith Sayigh of Sayigh + Duman won for home/interior design. The event was moderated by Jamie Pallot, condé nast Digital s editorial director. WWD FRIDAY, JANUARY 28, WWD.COM Ewert to Succeed Zimmer As Men s Wearhouse CEO; Founder Remaining Chairman GeorGe Zimmer, chairman, chief executive officer, and ubiquitous spokesman for The men s Wearhouse inc., is getting ready to turn over the reins of the company he founded in on Thursday, the houston-based retailer said its board had approved a succession plan that would elevate Douglas ewert, president and chief operating officer, to ceo in mid ewert, 47, has been with the company since 1995 and was named to his current post in Under the terms of the plan, Zimmer, 62, will continue as executive chairman of the board and will assist ewert in matters related to the strategic direction of the company. he will also remain involved in marketing activities. once ewert is elevated to president and ceo, the chief operating officer post will not be filled. Bill Sechrest, lead director of men s Wearhouse, said, our board has recognized that succession planning is an important part of any company s corporate governance and this plan reflects a considered process over several years to accomplish the natural evolution of the company s outstanding management team. The board said ewert has played a key role in enhancing the performance of more than 1,200 stores in the United States and canada. all three of the company s divisions men s Wearhouse, moore s and K&G as well as the merchandising and supply chain functions, report to ewert. The elevation of ewert is not surprising. a former macy s executive, ewert has held positions of increasing responsibility since joining men s Wearhouse 16 years ago. he became vice president of merchandising in 1999, executive vice president and general merchandise manager of all divisions in 2001, chief operating officer in 2005 and president in i am excited and honored to be chosen by the board to lead the next chapter in this company s amazing story, ewert said in an to WWD Thursday. i am looking forward to continue working closely with George and our outstanding leadership team for many more years to come. JEANE.PALMIERI WWD.COM/CLASSIFIEDS For more career opportunities log on to WWDCareers.com. THE TIME IS NOW! to schedule your classified ad in our special issue. Maximize your exposure with bonus distribution at the show! Call your WWD CLASSIFIED REP for details: Spaces COMMERCIAL REAL ESTATE Showroom & Event Space - Lux. Loft 1100 Sq. 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16 8 WWD FRIDAY, JANUARY 28, 2011 Prada to Set IPO in Hong Kong {Continued from page one} Pappalardo, Slaughter & May and Davis Polk & Wardwell will be the firm s legal advisers. The pool of banks is no surprise given that Intesa owns 5 percent of the company, with Miuccia Prada and Bertelli controlling the majority 95 percent stake through Amsterdam-based Prada Holding B.V. Davide Mereghetti, a top manager of important corporate clients for UniCredit, last year joined the Prada board, succeeding Brian Blake, formerly chief operating officer. Intesa, UniCredit and Crédit Agricole were among the banks that granted Prada a $455 million loan last July to be used to refinance a long-standing debt and to fuel the company s retail growth. The loan was due to be repaid by Prada reduced its debt to 429 million euros, or $566.2 million, at the end of October, compared with 485 million euros, or $693.5 million, at the end of January At the time, extension sources speculated it set a deadline for Prada to seek an IPO, depending on market conditions. For months, a listing in Hong Kong was rumored to be Prada s top choice. Given China s enormous potential for business, an IPO in the historic gateway to the country may be regarded as the next logical step for luxury goods brands. Prada has been capitalizing on growing revenues in the Asia-Pacific region, which showed a 51 percent surge in sales in the first nine months of In particular, China and related territories are the areas that are developing at the quickest pace for the company. Prada said 2010 revenues in China, Hong Kong and Macau rose 75 percent from 2009, to 389 million euros, or $532.3 million at current exchange. That represents nearly 20 percent of the group s total turnover. Earlier this month, Bertelli told WWD the group plans to open a significant number of stores in Asia over the next three years and expects to attain significant growth in the region. Prada currently has 14 stores in Mainland China, nine in Hong Kong and two in Macau, and this year plans to open nine stores in Mainland cities such as Harbin, Guangzhou, Changchun and Hangzhou. Another 11 stores are expected to open in Prada has been focusing on developing its global retail network, with the aim of generating more than 70 percent of consolidated turnover from directly operated stores next year. The company had 310 stores at the end of October. The Italian firm staged a major fashion-show event in Beijing earlier this month, and Miuccia Prada traveled there for the occasion. Also in January, the company said it was going to open design studios in Beijing and Paris. Chinese customers are very attentive to fashion trends, to which they attribute great relevance, and they are also competent in terms of quality and design, said Bertelli. It is thus a qualified market, not only in terms of commercial development but also in the interpretation of trends. A Milan-based luxury goods analyst, who requested anonymity, said Hong Kong is the natural alternative to Prada s own country, and attributed the firm s choice mainly to a financial issue i.e., price. Asian markets are thirsty for luxury goods, and Prada could be valued up to 30 percent more, at about 7 billion euros [$9.5 billion] in Hong Kong, compared to about 5 billion euros [$6.8 billion] in Milan, said the analyst. He also said the IPO could take place as early as this spring, with Prada floating between 15 to 20 percent of the company. Downplaying any friction with the banks involved, which were said to be vying for a listing in Milan, he said: It s a winwin situation: Debts will be repaid, the banks will enjoy their IPO fees and everyone will be happy. Kate Calvert, a retail analyst at Seymour Pierce research in London, concurred, saying Prada is more likely to get a higher multiple by listing in Hong Kong. And the luxury market is a growth market. It s got to be Asia [where Prada photo by DaviDe Maestri plans for its future growth to come from] China is the second-largest luxury goods market in the world. The wealth of emerging markets is a natural growth opportunity for any luxury brand. A study last year by Bain & Co. estimated the luxury market in Mainland China had grown 30 percent to $12.8 billion, and the region is expected to become the third-largest luxury market in five years. Greater China, including Hong Kong, already ranks number three, showing 23 percent growth in Luca Solca, a senior research analyst at Sanford C. Bernstein, also believes Prada is attracted by the higher multiples they can achieve in Hong Kong, in the same vein to what L Occitane has just done [the French beauty group listed its shares on the Hong Kong Stock Exchange last year]. Prada is one of the most prominent leather goods megabrands I think it could grow substantially. As with many other brands, Asia and China are very important. But Prada has global appeal, with the ability to grow all over the world. I believe the IPO should allow them to have more funds to this end. The company, whose 2010 fiscal year closes on Jan. 31, expects sales to reach more than 2 billion euros, or $2.6 billion at an average exchange rate, up 30 percent compared with 2009, said Bertelli. Earnings before interest, taxes, depreciation and amortization are expected to reach between 450 million and 500 million euros, or $594 million and $660 million. The group controls the Prada label, which in the first nine months last year accounted for 78 percent of total sales, the Miu Miu brand, Car Shoe and Church s. Prada first revealed an intention to do an IPO on the bourse in 2000 and has called off its IPO more than once most notably after the Sept. 11, 2001, terrorist attacks and in May 2002, due to market volatility. Miuccia Prada, though, in an interview with WWD last week, dismissed the idea the company had delayed an IPO more than Prada, spring WWD.COM once. Everybody says [we postponed the IPO] five times. But this five times was invented by other people. We tried it once, but then [there was Sept. 11, 2001] and we didn t do it. Everything else was always said by other people. Over the past two years, overseas enterprise listings in Hong Kong have included L Occitane, U.K.-based Prudential, giant Russian aluminum producer Rusal, Schramm from Germany and SouthGobi Resources from Canada. According to the Italian Trade Commission, there are no Italian companies currently listed in Hong Kong. Hong Kong is the most important financial base in that area, at the heart of a region where luxury brands grow at a doubledigit rate on a yearly basis and will do so for over the next 30 years at least, said Armando Branchini, deputy chairman of Milan-based consultancy InterCorporate. There are more opportunities for success, and you can see how favorable the evaluation and the potential of high-end brands are there. A spokesman from the Hong Kong Stock Exchange said the numbers suggest there have been more overseas companies listing in Hong Kong recently. We think that trend is due in part to our efforts in recent years to promote the benefits of listing in Hong Kong to potential new issuers overseas. Over the past five years, representatives from the Hong Kong Exchange (HKEx) traveled throughout the Asia-Pacific region, the Middle East, Europe and North America to publicize it. Rising valuations and an above-average priceto-earnings ratio of stocks contribute to making HKEx attractive to European firms, said the spokesman. With zero capital flow restrictions, numerous tax advantages, currency convertibility and the free transferability of securities, Hong Kong offers an attractive market for both issuers and investors, he concluded. While companies on the Milan Bourse must submit financial results every quarter, Hong Kong-listed firms only have to issue figures for the half-year and full-year periods. Mercury Advisers co-founder and luxury goods consultant Tomaso Galli said a Hong Kong IPO for an Italian firm would be logical as a sign of its commitment to that market and is bound to catch the media s attention. Galli, a former Gucci veteran who also worked at Prada, said that in the Eighties and Nineties, many companies listed on the New York Stock Exchange because that was the market they wanted to conquer and it was a step that would grant additional visibility. Yet Galli noted that it normally makes sense to be listed in the country where your company is based, because there is more awareness and investors know you better, the press writes about you more and you can be more hands-on. A Milan-based luxury goods analyst said companies would not have considered the Hong Kong exchange two or three years ago it was all about New York, London, Paris and Amsterdam, but this is no longer an America- Patrizio Bertelli Hong Kong is the most important financial base in that area, at the heart of a region where luxury brands grow at a double-digit rate on a yearly basis. ArmAndo BrAnchini, intercorporate centric market. That started declining on Sept. 17, 2008 [when Lehman Brothers filed for bankruptcy] and the world that is growing is somewhere else. Francesco Trapani, ceo of Bulgari, which is listed on the Milan Stock Exchange, said he believes that for a European company that operates in the luxury market and that is not listed yet, the first IPO should reasonably take place on a European bourse. This is mainly because Western investors interested in luxury, are for the moment more attentive and close to the sophisticated European markets rather than those of Hong Kong and Shanghai. That said, Trapani noted the issue is different for companies that are already listed in Europe. In this case, in fact, a secondary listing in Asia would allow to raise further capitals from Chinese investors that have more familiarity with Asian listings and that often have difficulties in investing, for reasons connected to local regulations, in companies listed on other markets, Trapani remarked. With contributions from Amanda Kaiser and Nina Jones