By KRISTI ELLIS

WASHINGTON — Volatility has crept into the U.S. apparel and textile import market after a long period of stability.

Two of the most steady powerhouse suppliers — China and Bangladesh — saw substantial declines in February imports, with market share being taken mostly by Asian neighbors India and Vietnam. China’s declines have been attributed to its desire to manu-facture more for its domestic market and the rising costs of sourcing there, while Bangladesh continues to deal with the backlash of factory tragedies over the last 18 months.

Apparel and textile imports to the U.S. from the world fell 4.1 percent to 4.3 billion square meter equivalents in February compared with a year ear-lier, according to the Commerce Department’s re-lease Thursday. Tepid retail conditions in the U.S. and weak forecasts for the fi rst half played a role, as did the burgeoning Made in America movement biting into imports, experts have noted. Apparel imports fell 4.2 percent to 1.9 billion SME, while textile shipments declined 4 percent to 2.3 billion SME.

Combined imports to the U.S. from top supplier China decreased 10.7 percent to 1.9 billion SME in February compared with a year earlier, its biggest such decline since March of last year. India, a large textile supplier to the U.S., posted the biggest com-bined gain — a 20.3 percent increase — among the top 10 countries.

By SHARON EDELSON and ARNOLD J. KARR

NORDSTROM AND Saks Fifth Avenue are betting big on their off-price concepts.

The Seattle-based Nordstrom Inc. plans to sharp-ly increase the number of Rack stores in the U.S. to 230 by 2016 from 148 currently, while Saks parent Hudson’s Bay Co. plans to double the size of Saks Off 5th over the next fi ve years, opening about 70 stores to boost the count to 140.

The Rack did $2.7 billion in sales last year, a 12 percent increase, and is seen as one of the key growth vehicles for the company, said Pete Nordstrom, exec-utive vice president of merchandising at Nordstrom, speaking Thursday at the fi rst annual Symposium on Omni Retailing at the Fashion Institute of Technology in New York. “We’re opening three, four and fi ve Rack stores in one day,” he said.

HBC previously said it would open up to 25 Off 5th outlets in Canada, along with seven full-line Saks stores, starting with a 150,000-square-foot unit carved out of 750,000-square-foot Hudson’s Bay fl agship in downtown Toronto. The ambitious plans for Off 5th would add another 45 stores to the concept in the U.S., said Richard Baker, HBC’s governor and chief executive offi cer, and is one key to expanding HBC’s volume to 10 billion Canadian dollars, or nearly $9 billion at current exchange, by fi scal 2018.

Baker expects the new template for Off 5th to rep-resent a signifi cant departure from the existing one, with stores larger than the average of 30,000 square feet for the 72 existing stores in the U.S. and the con-cept more improvisational.

“We’re modifying the format,” he told analysts on a Thursday morning conference call to discuss HBC’s fourth-quarter results. “We will deliver true fashion and real value in an easier-to-shop, treasure-hunt type of environment.”

For HBC and Nordstrom, omnichannel offers

That Fabulous Face

WWD

PHOTO BY STEVE EICHNER

SEE PAGE 12

AGGRESSIVE EXPANSION

Saks and NordstromTo Boost Off-Price

Sharp Import DeclinesHit China, Bangladesh

SEE PAGE 12

Talk about an “It” girl. From winning an Oscar for best supporting actress to wowing the crowds on the red carpet in Ralph Lauren and Prada, Lupita Nyong’o has been a busy

woman. And she’s about to get a whole lot busier. Nyong’o has a slew of fi lm projects in the works, which she hopes will include everything from comedies to thrillers and

directing more documentaries, and now, of course, a beauty deal. The actress has just signed on to be a celebrity ambassador for Lancôme, joining Julia Roberts, Kate Winslet,

Penélope Cruz and Lily Collins on the brand’s roster. For more, see page 5.

FRIDAY, APRIL 4, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY

NEW OWNERXCEL BRANDS

INC. BUYS JUDITH RIPKA FOR $20

MILLION. PAGE 2

FORMICHETTI’S DEBUT

NICOLA FORMICHETTI SHOWS HIS FIRST COLLECTION FOR DIESEL IN VENICE.

PAGE 3

LUCKY CHARMSCARTIER UNVEILS THE JEWELRY COLLECTION

AMULETTE DE CARTIER AS IT MOVES ITS NEW YORK FLAGSHIP INTO A TEMPORARY SPACE. PAGE 3

2 WWD FRIDAY, APRIL 4, 2014

TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS FIRSTNAME_LASTNAME@FAIRCHILDFASHION.COM, USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2014 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.VOLUME 207, NO. 68. FRIDAY, APRIL 4, 2014. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and two additional issues in February and September) by Fairchild Fashion Media, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 6356, Harlan, IA 51593. FOR SUBSCRIPTION, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6356, Harlan, IA 51593, call 866-401-7801, or email customer service at wwdPrint@cdsfulfillment.com. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For reprints, please e-mail reprints@condenast.com or call Wright’s Media 877-652-5295. For reuse permissions, please e-mail contentlicensing@condenast.com or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.wwd.com/subscriptions. Occasionally we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 6356, Harlan, IA 51593 or call 866-401-7801. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

Judith Ripka Sold to Xcel Brands

Mass Faintings at Cambodian FactoriesBy DENE-HERN CHEN

PHNOM PENH, Cambodia — More than 300 work-ers at three separate factories fainted en masse on Wednesday and Thursday due to noxious paint fumes and the consumption of unsanitary food, a Ministry of Labor official and a union leader said.

Two of the factories — Shen Zhou (Cambodia) fac-tory and Daqian Textiles (Cambodia) factory — man-ufacture clothing for German sports labels Adidas and Puma, according to supplier lists produced by both brands. Seang Sambath, president of the Worker Friendship Union Federation, said that a total of about 260 workers collapsed in both factories.

The third factory where the incident occurred was New Wide (Cambodia) Garment factory, where about 100 workers lost consciousness on Wednesday due to noxious paint fumes, he said.

Heng Sour, a spokesman for the Ministry of Labor, confirmed all three incidents, though the ministry’s numbers were much lower. He explained that management from Shen Zhou and Daqian — both of which have the same owner — served their workers meals on Wednesday that were unsanitary, which led to the faintings.

“The factory gave chicken rice to workers to eat for lunch and the meal was not sanitary and some work-ers felt unwell and they started to faint,” Sour said. “The owner [for both factories] is the same, and they provided the same food, so the cause is the same.”

The faintings occurred again on Thursday morn-ing in both factories because workers were still “psychologically affected,” he said.

As for the workers in the New Wide factory, Sour said the factory building was undergoing a paint job, and workers testified to feeling light-headed

after breathing in the fumes.Silvia Raccagni, sustainability communications

manager for Adidas, said in an e-mail that factory man-agement at Shen Zhou and Daqian, as well as govern-ment authorities, were closely monitoring the situation.

“Workers received immediate medical attention and then returned home to rest,” Raccagni said.

Kerstin Neuber, head of Puma’s corporate com-munications, said by e-mail that food samples from the factories are being investigated.

“[S]amples of the factory’s canteen food have been sent to a laboratory nominated by the government to verify whether the sickness symptoms could have been caused by the food,” Neuber said, adding that the factories plan to resume production by Saturday.

Ouy Leap, a 27-year-old garment worker in Daqian, said she ate a meal provided by factory officials on Wednesday and immediately started vomiting and having diarrhea. By Thursday, she felt light-headed when she was at work and collapsed at around 7 a.m.

“I was so scared when I saw so many workers fainting. I don’t know what happened,” said Ouy, who checked herself into a clinic.

With more than 500,000 workers producing cloth-ing for some of the world’s most prominent brands, faintings at Cambodian factories attracted interna-tional attention in mid-2011 when workers began collapsing by the hundreds on factory premises.

According to the ministry, 823 workers fainted in 2013, a sharp decrease from 2012’s more than 1,600 workers. Experts have attributed this phenomenon to a combination of reasons, including bad ventila-tion, poor worker nutrition and mass psychogenic illness known as mass hysteria.

Management from the three factories could not be reached for comment.

— WITH CONTRIBUTIONS FROM CHENG SOKHORNG

By VICKI M. YOUNG

JUDITH RIPKA is Isaac Mizrahi’s new brand sib-ling under the Xcel Brands Inc. umbrella.

Xcel, which also has an interest in Liz Claiborne New York that’s sold on home shopping channel QVC, has closed on its acquisition of the Judith Ripka brand and related intellectual property assets.

The acquisition price is $20 million, consisting of $14 million in cash and $6 million in interest-free promissory notes due five years from the date of issu-ance and payable in cash or company stock at Xcel’s election, plus 571,500 shares of Xcel common stock. In addition, Xcel will provide up to $5 million in contin-gent future payments, either in cash or company stock, upon the Judith Ripka brand achieving certain net roy-alty levels from October 2015 through September 2018.

Judith Ripka will continue as the brand’s chief designer. “This is an outstanding opportunity to cul-tivate our brand and reach our loyal followers in a new way,” she said.

Robert D’Loren, Xcel’s chairman and chief ex-ecutive officer, said, “We see a tremendous potential for engaging Judith’s brand followers across new product categories, leveraging our omnichannel strategy. This acquisition satisfied all of our acquisi-tion criteria; it’s strategic, synergistic and accretive.”

Ripka’s first collection was in 1977, and she opened her first freestanding store in Manhasset, N.Y., in 1993. There are currently six stores in op-eration. The company launched a sterling silver jewelry line on QVC in 1997.

D’Loren said it was through QVC that he first learned of the opportunity to acquire the brand. Both the Liz Claiborne and Isaac Mizrahi lines are sold on QVC.

Discussions began three months ago. By that time, Ripka’s president Chuck Jayson had already left the company. Xcel acquired the trademarks and related IP assets, and will be responsible for product sold on QVC. The operating business, which is responsible for the wholesale component of the Ripka brand, is still run by members of Ripka’s family under license from Xcel.

The Judith Ripka brand is offered at four different price points. The White label is the off-price collec-tion at Century 21, TJ Maxx and Marshalls; Silver is the sterling silver group and is the interactive televi-sion option via QVC and Shop the Shopping Channel; Black is sterling silver with touches of 18-karat gold sold at department stores such as Nordstrom, Lord & Taylor and Macy’s, and Gold is the couture-bridge line featuring 18-karat gold jewelry options sold at Neiman Marcus and Saks Fifth Avenue.

According to the investment deck about the Judith Ripka brand that was sent to prospective buyers, the company posted sales in excess of $100

million in 2013, competes with Ippolita among the modern jewelry brands and ranks higher than Alexis Bittar and Eddie Borgo at the better retailer channel but below David Yurman, Stephen Dweck and David Webster, which are sold at bridge or luxury retailers.

D’Loren said one of Xcel’s goals is to move the brand to a best-better strategy so its placement is more upscale at the David Yurman or better level, with more department store doors at Saks, Neiman’s and Nordstrom at the better category. The QVC busi-ness will remain an integral component of the brand.

Using the Xcel design platform that’s already in place, the plan is to remain design driven by bring-ing Ripka’s expertise in jewelry and extending that into new categories such as handbags for day and evening, footwear, gift items and tabletop.

With the Ripka brand now under its umbrella, Xcel’s QVC business including Mizrahi and Liz Claiborne is expected to total $300 million this year.

When Xcel acquired the Mizrahi licensing business in September 2011 for $31.5 million, that deal struc-ture also included a combination of cash, a seller note and the issuance of Xcel common stock, as well as an earn-out arrangement. Mizrahi stayed on as chief de-signer. Mizrahi remains the face of the brand, while a creative design team is responsible for executing on the designs and production of product offered on QVC.

At the time of the purchase, volume for the Mizrahi brand was at $50 million on QVC. It rose to $105 million last year and is forecasted at $150 mil-lion this year. Retail volume for the non-QVC prod-ucts sold by the brand is forecasted at $90 million this year across 26 categories. There are licenses for nearly 150 categories, according to D’Loren.

In addition to the Southampton, N.Y., store that showcases the world of Isaac Mizrahi, a second lo-cation in Atlanta was opened last week.

In the case of the Liz Claiborne line on QVC, its volume was $10 million in 2011, and is now close to $48 million.

ON WWD.COM

THE BRIEFING BOXIN TODAY’S WWD

Nordstrom and Saks are allotting the biggest portion of their investments in brick-and-mortar stores for their Rack and Off 5th off-price concepts. PAGE 1 Volatility has crept into the U.S. apparel and textile import market after years of stability. PAGE 1 Diesel held an over-the-top event in Venice celebrating the first collection designed by Nicola Formichetti. PAGE 3 Cartier is looking to the past with its new jewelry collection, Amulette de Cartier. PAGE 3 Kate Spade New York is opening the doors of a new international flagship in the Ginza section of Tokyo. PAGE 4 Oscar winner Lupita Nyong’o, who has just inked a deal to be the next face of Lancôme, discusses her career. PAGE 5 The first U.S. House of Viktor & Rolf fragrance shop-in-shop is to open Sunday at Saks Fifth Avenue in Manhattan. PAGE 6 L’Oréal Paris’ Preference Mousse Absolue is rolling out to the U.S. market beginning this week. PAGE 7 Salvatore Ferragamo launched its newest fragrance, Incanto Amity, at a pop-up store in Tokyo on Tuesday. PAGE 7 Graydon Carter’s latest Manhattan culinary venture is The Beatrice Inn, featuring executive chef Angie Mar. PAGE 10 Ecko Unltd. and affiliated firms filed a voluntary Chapter 11 petition for bankruptcy court protection. PAGE 11 Joyce Chang is the new editor in chief of Self magazine, succeeding Lucy Danziger. PAGE 11

Jeísa Chiminazzo at the dinner feting the collaboration between the CFDA and the Editorialist. For more, see WWD.com.

EYE: The CFDA and the Editorialist kicked off their collaboration with a dinner at the Highline Hotel in Manhattan on Wednesday night. For more, see WWD.com.

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Robert D’Loren and Judith Ripka

WWD.COM3WWD FRIDAY, APRIL 4, 2014

By ALESSANDRA TURRA

VENICE — “Venice is like eat-ing an entire box of chocolate liqueurs in one go,” Truman Capote once said. And so it was with the Diesel show, held at the Venetian Arsenal on Thursday night.

Fashion, music, video art — they all merged into a spectacu-lar, over-the-top event celebrat-ing the first collection designed by Diesel artistic director Nicola Formichetti, who joined the Italian company a year ago.

“This is not just a runway show; this is what we want to be in the next 10 years,” said Diesel founder Renzo Rosso. “We want to be the contemporary alterna-tive to the world of luxury — no more frivolous things. We want to deliver a very precise image.”

“This is a foundational collec-tion,” said Formichetti, who organized the lineup into three different blocks, fo-cused on Diesel’s signature elements: leather, denim and military references.

The show opened with sexy chicks in leather zipped dresses embellished with me-tallic pieces in the shape of Venice’s sig-nature lion and rock ’n’ roll guys in biker jackets and skinny pants. The extensive denim section ranged from traditional clas-sic jean outfits to Nineties-inspired slouchy trousers and a number of laser-cut pieces, which Formichetti described as “denim couture.” The mil-itary group included par-kas with shearling inserts and power coats paired with colorful sweaters in geometric patterns.

“There is everything, from classic to sexy, but it’s all so wearable,” said Formichetti, who tapped American rapper Brooke

Candy to perform live before the surprise show finale: The models took the runway wear-ing balaclavas decorated with colorful Mohawks and Mickey Mouse ears.

“It’s so cool. I love Renzo, I love everything he does,” said Courtney Love, who was among the celebrities attending the event. “I’m wearing Diesel to-night even if it’s probably more for my daughter than for me,” she said with a laugh. The rock star, who will play in London in May and who is finishing a book, revealed she is going to launch her own fashion line. “I’d love Renzo to produce it,” she said.

Asked about a potential collab-oration with Love, Rosso replied, “She has never talked to me about this, but never say never.”

Other guests included Dree Hemingway, Italian actresses Asia Argento and Cristiana

Capotondi, musicians Elisa and Marracash, and American actor Colton Haynes, who portrays su-

perhero Roy Harper in the TV series “Arrow.” “It’s such a work of

art — the music, the flames at the en-trance, the location itself,” said Haynes, in Venice for the first time. “I’m going to take three months of vacation to explore

the world — in particular, I want to go all over Europe and I want to visit Shanghai.”

Dsquared2’s Dean and Dan Caten, Viktor & Rolf ’s Viktor Horsting and Rolf Snoeren, along with Marni’s Consuelo Castiglioni, the creative direc-tors of the brands under Diesel’s parent company OTB, also joined Rosso in Venice for the show.

“When Renzo texted to in-vite me to the event, he wrote: ‘Consuelo come, it’s the most important event of my life,’” Castiglioni revealed.

Zara Unveils New Madrid Flagship

Diesel Puts on a Show in Venice

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By LAUREN MCCARTHY

NEW YORK — Cartier is looking to the past with its new jewelry collection, Amulette de Cartier.

Based on the concept of amu-lets, objects meant to ward off evil or to bring good fortune, the range features variations of a dis-clike charm designed to act as a collector of one’s innermost wish-es. “We went back to the origin of jewelry,” said Emmanuel Perrin, president and chief executive of-ficer of Cartier North America. “Before it had an artistic func-tion, it was a curse repellent or a

good-luck charm. We’ve come back to that aspect, which for Cartier has al-ways been a strong component.”

The collection, in-spired by Cartier’s XXL Padlock charm bracelets of the Fifties, features a circular pendant crafted from mother-of-pearl, onyx

or diamonds, with a small onyx or dia-mond placed in the center. The piece is offered in two pen-dant sizes, as well

as a sautoir necklace and simple bracelet. The collec-tion, which ranges from $1,910 to $82,500, marks what Perrin de-scribes as a “revival of daywear.”

“We wanted something more playful, younger, more femi-nine,” he said. “We’ve been a bit more focused lately on the high end, which is much more dif-ficult to show. Our clients, yes, but then in a preview, more than half of it is sold and gone, never to be seen. It affects the percep-tion of our creativity, compared to what it really is.”

Cartier is also introducing a collection of leather goods — its first major launch in the handbag category since the debut of the Marcello line in 2007. The col-lection is split into two divisions: the Jeanne Toussaint, for women, and the Louis Cartier, for men. The Jeanne Toussaint collection, named for the company’s former bag designer and jewelry depart-ment head, consists of seven styles crafted from leather, croc-odile, hard stones and metal fin-ishes. Three “creative editions” will be available in limited quan-tities. A made-to-measure option will be offered in Cartier bou-tiques on these models, where customers can customize which materials are used. Prices for the collection range from $2,260

for a leather clutch to $14,800 for a limited-edition crocodile bag.

The Louis Cartier collection includes six bags, with two limit-ed-edition pieces. Styles include messenger bags, briefcases and document holders, with prices ranging from $1,500 for a leather business portfolio to $46,300 for a crocodile messenger bag.

The Amulette de Cartier col-lection and the new leather goods lines are available begin-ning today at Cartier boutiques — including the new 59th Street outpost here, which also opens today. Last Saturday, the luxury jeweler shuttered its landmark

Fifth Avenue man-sion for renova-

tions that will last about two years. The

new boutique, lo-cated on Fifth Avenue

and 59th Street, will serve as its main New

York outpost in the meantime. The two-story

boutique measures 11,000 square feet, with 8,000

square feet designated as selling space — its larg-est worldwide. The decor

features high ceilings deco-rated with chandeliers, oak paneling and glass display fixtures trimmed in bronze.

The Bruno Moinard-designed space has dedicated areas for

engagement and bridal jewelry, watches, high-end jewelry, vin-tage pieces and accessories. According to Perrin, the goal was to create a space that did not feel temporary and maintained the company’s luxury vision.

Just seven blocks north of the Cartier mansion, the location itself is embedded in brand his-tory. In a letter dated Sept. 13, 1908, Alfred Cartier wrote home to Paris about his search for the company’s first New York space. “According to what we’ve decid-ed, I’ve been looking for space for locations to rent that could fit our needs. There are actually very few. So far, the building oc-cupied by Maison Alavoine is the most interesting to us. It is at 712 Fifth Avenue, five min-utes from the park and three minutes from the Plaza, and the most French, in Louis XVI style with fine stone masonry.”

“I would love to say that we followed the letter, but it’s not true,” said Perrin. “We actually discovered the letter after we had decided on the space, but it’s a very nice touch. It’s inter-esting to see that in almost 100 years the key location in New York hasn’t changed that much.”

Cartier Adds New Lines, Opens Manhattan Unit

By BARBARA BARKER

MADRID — The new Zara flag-ship here was 14 months in the making, said La Coruña-based architect Elsa Urquijo during a walk-through Thursday.

The five-story, 53,820-square-foot corner location on shopping thoroughfare Calle Serrano — in a building owned by Zara parent Inditex founder Amancio Ortega — opens today.

The architectural challenge, she added, was preserving the tradition of the neighborhood and the building’s history — in-cluding its late-19th-century Castillian facade — and com-bining it with today’s modernity. The result is a “glass box” with 25,995 square feet of selling space filled with natural light and a chalky white palette; open display cases in a silver/gold-tint-ed metal especially made for the new store, and metallic fabric sandwiched between glass pan-els that give “glamour and shine to the clothes; they don’t look the

same inside the store [as out-side],” said Urquijo’s husband, Andrés Conde, managing direc-tor of Elsa Urquijo Architects.

“Customers will feel some-thing different here. They may not know what it is, but they’ll feel it,” he said, pointing out the ground floor’s original exposed brick construction and continuous con-crete flooring. “It’s the connection between old and new. You feel

like you’re in a historic place.”The first three floors are

given over to a full range of Zara’s women’s collections including accessories, an ex-panding category. Men’s wear is on the third floor, and a 3,875-square-foot diaphanous showroom with wraparound north-south views (which is not open to the public) is on the top floor.

An Amulette de Cartier pendant in yellow gold,

white mother-of-pearl and

diamond.

Inside the new New York boutique.

FOR MORE IMAGES, SEE

WWD.com.

Nicola Formichetti

and a performer.

Here and above right: Looks from the runway show.

▼

The Madrid store features a late-19th-century Castillian facade.

4

By JEAN E. PALMIERI

WP LAVORI IN CORSO is making its first major move into the U.S. market.

The Bologna, Italy-based fashion com-pany, which owns or licenses brands in-cluding Woolrich John Rich & Bros and Baracuta, will open its first store in the U.S. today. The 1,700-square-foot flagship is located at 225 Smith Street in the Cobble Hill section of Brooklyn in the space for-merly occupied by Smith + Butler, which closed in February.

The store features a curated selection of the company’s brands as well as several third-party labels including Engineered Garments, Nanamica, Hudson, Velva Sheen, Shinola and Barena.

WP Lavori was founded in 1982 and opened its first store in Italy in 1985. It holds the worldwide license for Woolrich John Rich & Bros and Woolrich Woolen Mills. It also holds the Italian license for Penn-Rich and has Italian distribution deals with Barbour and Blundstone. It owns Baracuta and B.D. Baggies and op-erates 23 stores worldwide: 14 WP stores, eight Woolrich doors and one Barbour unit.

“For us, this is a very important test,” said Andrea Cane, creative director of WP Lavori. In addition to economics, opening outside Manhattan will allow the company to test the waters in the American market.

“Manhattan is very competitive,” he said. “You go there when you’ve proven your-self in a smaller neighborhood.” He said Brooklyn and its residents are similar to the customers that shop at the company’s stores in Europe, and the neighborhood offers a “relaxed place to shop.”

The store is evenly split between men’s and women’s wear with women’s mer-chandised at the entrance and men’s in the rear. “Women’s is really working well for us,” Cane said. While the backbone of the inventory will remain the same, WP Lavori’s team of buyers will freshen the store every season with other labels from around the world, mostly from the U.S., Europe and Japan.

“Many of our owned brands are root-ed in American traditions and style,” said Cristina Calori, founder and presi-dent of WP Lavori in Corso, pointing to Woolrich and B.D. Baggies. “WP has al-ways honored craftsmanship, tradition and history and we are [pleased] to be opening our first North American flag-ship in Brooklyn, a community that also reflects these values.”

To introduce the store to the American audience, Cane said there will be visual el-ements both in the windows and inside the unit, which will feature a contemporary “heritage-driven” design aesthetic. The company will also employ social media and public relations and will host a num-ber of events. “But the communication will be more person-to-person,” he said, adding that the design is intended to encourage a sense of “discovery” among shoppers.

The company hopes this store will be the first of several it will open in the U.S. mar-ket. Cane acknowledged that because WP Lavori is “totally unknown” here, “it will take time.” But eventually he hopes to add additional flagships in other East Coast cit-ies. He also hinted that a retail development plan for Woolrich John Rich & Bros will be revealed in the next few months. “We’re putting together a plan now,” he said, one that is also expected to target cold-weather cities on the East and West Coast of the U.S. and will be executed in tandem with the Woolrich family, which still owns the brand.

WWD FRIDAY, APRIL 4, 2014

By SHARON EDELSON

H PROJECT at Holt Renfrew is on a mission — bringing the soul of a country to life in the Canadian stores.

Uncrate India is the latest H Project, launching today.

“This project screamed India because of the color and vibrancy,” said Alexandra Weston, director of brand strat-egy. “It’s exotic, but within our realm of comfort. Then there’s the workmanship...”

H Project, Weston’s initiative, gathers products that support culture and craft globally as well as those made from sustainable or responsible materials and that tie back to a charitable initiative.

Weston collaborated with jewel-ry designer Waris Ahluwalia, whose House of Waris has been travel-ing to India for years. “We want to uncrate the special stories, richness and di-versity of India through its products,” Weston said. The second in-stallment of H Project runs through May 31.

Besides Indian products, the Bloor and Yorkdale stores in Toronto, and the Vancouver and Calgary units have been decorated to give shoppers a taste of the country. There’s a brightly colored life-size elephant in a store win-dow with orange walls and a purple floor, and in the store’s center court, there’s a fashionably dressed tuk-tuk driver, his cart over-flowing with bolts of fabric. “Our visual team understood through our pictures and meetings what the essence of our trip was and they’ve done an incredible job,” Weston said.

Weston combined her love of travel

with her interest in doing good to create H Project. “I was inspired by my family and background,” said Weston, whose maternal grandparents founded footwear giant Bata Shoes and whose husband, Galen Weston Jr., is executive chairman of Loblaw Cos. Ltd. and the son of Galen Weston, chairman of Holt Renfrew, the Selfridges Group in the U.K. and Brown Thomas in Ireland, among other retail holdings.

Ahluwalia saw eye-to-eye with Weston immediately. “We’re aligned in that the celebration of craft is an exercise in commerce,” said Ahluwalia. “To support craft is to buy craft.”

Weston and Ahluwalia trav-eled to Delhi, Jaipur, Udaipur and Mandawa. House of Waris jewelry for H Project starts at $200 for rings

with semiprescious stones. Fine jewelry starts at $2,000 with the

most expensive piece priced at $25,000. The opening

price point for Uncrate is $8 for a notebook; color-block-printed children’s clothing, $50; Outhouse jewelry, $100 to $300; ready-to-wear, $200, and House of Waris carpets,

$1,000. “It allowed me to make things in different

categories,” Ahluwalia said. “This was a chance to play with another price point. We made things that are accessible.”

As for the next locale, “We’re eyeballing South America,” Weston said. “There’s a lot of in-

credible work there. We’re also looking at Kenya. Definitely something that will bring an element of the armchair trav-eler experience.”

In keeping with her philosophy, Weston said Holt Renfrew donated $15,000 to UNICEF in India for chil-dren’s health and education.

By AMANDA KAISER

TOKYO — Kate Spade New York is opening the doors of a new international flagship in Ginza here, hoping to capitalize on its fast-growing business in Japan and propel future expansion elsewhere in Asia.

Craig Leavitt, chief execu-tive officer of Kate Spade & Co., described the store as the “crowning achievement” for the brand’s 18-year-old business in Japan. Citing a 26 percent surge in fourth-quarter comps for the company in Japan, Leavitt said the country continues to per-form very strongly.

“[Those are] clearly some in-dustry leading numbers that we were very, very excited about, and it shows that there is real meaningful opportunity to con-tinue to expand our business here,” he said.

Leavitt said the company plans to open a few more stores in Japan this year but its real focus is on boosting the produc-tivity of its 73-store network in the country. That store count in-cludes Kate Spade, Jack Spade, outlets and the one-year-old Kate Spade Saturday brand. The com-pany has more aggressive expan-sion plans for elsewhere in Asia, where it has a less established presence. Specifically, Leavitt

said Kate Spade will open eight to 12 stores in China this year — currently it has about 20 bou-tiques there. Kate Spade also recently established a new Asia headquarters in Hong Kong to oversee its expansion in the re-gion, excluding Japan.

“There’s no question that Japan in general, as a market for us, has been an important marketing tool for our growth in the balance of Asia,” he said. “We know that customers around the world, and certain-ly around Asia, look to what is happening in Ginza as a way to assess a brand.”

Leavitt said the brand is per-forming well in China and he thinks the recent slowdown in luxury spending there that has hit some high-end luxury brands has probably created an advan-tage for more accessibly priced fashion players.

“For brands like ours that are in the accessible luxury arena, it’s actually an oppor-tunity to gain market share,” said Leavitt, who along with the brand’s creative director Deborah Lloyd hosted a party Thursday evening to fete the new Tokyo store.

The new flagship, which fea-tures 4,541-square-feet of sell-ing space over three levels, is located on one of Ginza’s small-er side streets. It also happens

to be right next door to Tory Burch’s flagship and just around the corner from Coach’s sizable space on the main road, giving Kate Spade a presence in a cor-ner of the neighborhood popu-lated by its contemporary rivals.

The store’s first two levels offer a mix of apparel, shoes

and accessories, including items from the brand’s more ex-clusive Madison Avenue collec-tion. The Ginza store is the only point of sale for this higher-end product range outside the U.S. Home goods and furnishings oc-cupy the third floor, which also houses a complementary bar

featuring a brass screen of mov-ing pinwheels. A showroom and office space for the brand make their home on the fourth and fifth floors of the building.

Lloyd said Japanese women’s enthusiasm for the brand has impressed her. When she visited the store Wednesday, she ob-

served passersby on the street photographing the facade.

“We had to put the closed sign up because they were all trying to get in the door,” she said.

The designer said she and her team have put a lot of work into adjusting the fit of the brand’s clothes to appeal

to Japanese women’s smaller frames and it has paid off.

“We’ve seen a huge reaction to the ready-to-wear once we got the fit right for our customer here,” she said, adding that Kate Spade is keen to take on board local tastes when it comes to de-veloping products. The company makes smaller bags and more delicate jewelry pieces to cater to Japanese customers, for example.

Lloyd, who drew inspiration for her fall collection from her past trips to Japan and China, said she is always curious to see how Japanese women wear the brand, particularly their bold choices when it comes to color.

“Seeing how they put it togeth-er in their own personal way is very exciting,” she said. “They’ve got amazing personalities.”

Lavori Opening First U.S. Unit

Kate Spade Builds on Success in Japan

House of Waris’ ombré blue sapphire

pendant, $7,220, at Holt Renfrew’s

Uncrate India shop.

Craig Leavitt and Deborah Lloyd

Inside the Tokyo flagship.

India Latest Focus of H Project

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A look at the new store.

WWD.COM5WWD FRIDAY, APRIL 4, 2014

By JULIE NAUGHTON and PETE BORN

DON’T mIsTAkE Lupita Nyong’o for some lightweight starlet who’s been pushed into the limelight with an Academy Award win.

The 31-year-old kenyan-mexican actress — who last month won a best supporting actress Oscar for her role as Patsey in “12 Years a slave” — is a bona-fide triple-threat: an actress, a di-rector and a producer. Not to mention she’s just inked a deal to be the next face of Lancôme.

It has been an action-packed month for her, and the pace is likely to stay that way for the foreseeable future. so what was the first thing that went through her mind when she was named an Oscar winner?

“It was ‘Did I say my name or did they say my name?’” an animated Nyong’o said, leaning forward in her chair during an exclusive interview with WWD. “All that time from ‘The

nominees are…’ to ‘The Academy Award goes to…’ is years! It’s just way too long. And then your head is just filled with your own name, because that’s all you can think of — either they are going to say my name or they aren’t going to say my name. It’s a suspension of time, and the only thing that matters is ‘Are they going to call my name?’ Then they said my name, and my brother was scream-ing and losing his mind.”

How has it changed her life thus far? “I was dazed and confused and I still am,” she said with a grin. “It doesn’t feel real. I couldn’t believe I was climb-ing up the very same stairs that Jennifer Lawrence was climbing. It’s still very surreal. It’s changed a lot — more peo-ple know who I am, for example, and I’m sure it’s bound to change [other] things.”

But thus far, the additional pressure hasn’t quite sunk in. “I’m sure it will at some point, but right now I’m just too exhausted. It does have a psychological affect. But at the end of the day, the per-ceiver affects the perceived. so how peo-ple regard me will obviously change how I regard myself. Right now, it’s too soon. I feel like the Oscars really did happen yesterday. I don’t have enough time be-tween the event and my reality to really fully analyze how it has changed me.”

she doesn’t expect to have her head turned by Hollywood glitz. “The thing about working in Hollywood is that it isn’t really a geographic location where you go and figure out the culture,” she said. “Hollywood is really just made up of a whole bunch of people making movies everywhere. so it’s still a learn-ing process; I cannot say that I’ve fully integrated into the ways of Hollywood — but I don’t know very many people who could say [they have] anyway. In my version, the Hollywood that I live in is very much peopled by people I’ve known from before. I carried my family through this entire process, and they made it more manageable.”

Part of what makes her so ground-

ed is that she knows the movie busi-ness from both sides of the camera. Armed with a bachelor’s degree in film and theater studies from Hampshire College and a master of fine arts degree from the Yale school of Drama, Nyong’o worked as a production assistant on films like “The Constant Gardener” and “The Namesake” and went on to write and direct the documentary “In my Genes” before she took on the role that has given her fame.

“I hope [the experience has] informed me and made me a better actor, for sure, because knowing what happens behind the camera is always very important for an actor to know. Yes, we are the face of a thing but we’re really not that important, you know what I mean?” she said with a booming laugh. “We are the most impor-tant and then also the least, because so many people have to get things coordi-nated before we step on that set. I have an appreciation for that, and I think that makes for a better working relationship.”

As for future directing and producing projects, Nyong’o is particularly interest-ed in documentaries. “I’m interested in

producing and perhaps directing [more] documentaries. my interest in direct-ing fiction is” — she held up her hand, showing almost no distance between her thumb and her index finger — “about that much. I’m interested in discovering the drama in real life. That’s where you get inspiration for the fake ones.”

she felt that keenly while filming her role in “12 Years a slave.”

“It was difficult, because it’s not just an intense story, it’s a true story,” she said. “so the responsibility of [telling the story of] people who actually tread the earth was something that I had in mind at all times. And the time period is seldom explored in film, so it was an extra responsibility. But you have to put that pressure aside and just do the role at hand. I’m one individual — not trying to represent the umbrella that is slavery and the 300 years it was in place. I focused on that one individual, because focusing on the specific cap-tured the general.”

Despite the gravity of the role, Nyong’o was realistic about her chances at the Oscar: “By being nominated, I had a one-

in-five chance. There’s no saving yourself from the turmoil of whether you’re going to win or not — you just have to go with it. It didn’t really matter, because I didn’t ex-pect to be nominated. And I was thankful to have the platform to thank just a few of the people who made it possible for me to get to that point.”

Nyong’o is eager to try a little bit of everything when it comes to acting. “I want to have a diverse career,” she said. “I’m interested in action and fantasy; I’d love to do animation. That would be fun. Comedy, believe it or not. Thrillers. That’s an actor’s dream: To have a di-verse career that asks me to go into scary new places within myself. I do well when I step into things I know noth-ing about. I thrive when I come from a place [like that].”

Any dream roles? Nyong’o is unequiv-ocal: “No.” Dream directors? Different reaction entirely: “Tons. I love Pedro Almodóvar and Ang Lee and kathryn Bigelow. so there are a few.” But she remains mum about upcoming roles. “Nothing I can speak of,” she said.

she’s also keen on doing stage work, something she came to enjoy at Yale, where she played such roles as Perdita in shakespeare’s “The Winter’s Tale.” “most definitely, yes. I am hungry to go back on stage.”

Next up is Nyong’o’s Lancôme deal, with ads that will break in september for an as-yet-unidentified product. Nyong’o joins Julia Roberts, Penélope Cruz, kate Winslet and Lily Collins as celebrity am-bassadors for the brand. “What appealed to me about Lancôme is that they’re not dictating what beauty is,” she said. “What they do supports something that already is — and that was appealing to me, too. It’s what drew me to them. Hopefully it’s

a symbiotic relationship — that I ben-efit from being associated with them, and they benefit from being associated with me, as well. And for the consumer at large, I think Lancôme has a range of products for every woman, and I think having me will expand people’s under-standing of, hopefully, what Lancôme stands for, who Lancôme is for.

“I had to give a speech about beauty right before the Oscars,” she continued, “and for me, beauty is a compassion for yourself and those around you. And I think that in focusing on that, the light inside illuminates the beauty outside. The idea that Lancôme now has a few actor ambassadors is significant because actors are not just faces, they are spir-its that people enjoy and relate to more than in an aesthetic way. We have the privilege of standing for something other than just looks.”

One of Nyong’o’s personal inspira-tions is model Alek Wek. “When she came on the scene, I felt more seen,” said Nyong’o. “Having me on a huge campaign like this will hopefully do that for other girls or people who feel unseen or underseen.”

beautyNyong’o on Lancôme and Hollywood

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How people regard me will obviously change how I regard myself.

— Lupita NyoNg’o

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drama in real life. That’s where you get

inspiration for the fake ones.

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6 WWD FRIDAY, APRIL 4, 2014

By MOLLY PRIOR

FRIENDS AND ADMIRERS of Andrea Q. Robinson took over the Ralph Lauren store on Madison Avenue in New York on Wednesday evening to fete the launch of her book, “Toss the Gloss: Beauty Tips, Tricks & Truths for Women 50+.”

As credit card receipts for book purchases were signed and Champagne flutes were passed, guests funneled toward an elegant glass display case decorated with a vase of pink peonies and copies of “Toss the Gloss.” Stationed behind the class counter was Robinson, who greeted well-wishers such as David Lauren, Allen Burke and Allure’s Linda Wells, and signed copies of her book. Ralph Lauren also made an appearance.

Robinson, a widely known beauty marketer who has held posts at Revlon, L’Oréal and the Estée Lauder Cos. Inc., strikes a tell-it-like-is tone in the book. She swiftly takes issue with

the “suits” running the cosmetics business, and what she sees as their lack of understanding about what women want. It’s also, of course, teeming with beauty advice for women over 50, and serves as the precursor to an upcoming

color cosmetics line called Mrs. Robinson, due out next year.

Robinson, who once occupied the role of president of Ralph Lauren Fragrances Worldwide, said she chose to celebrate the launch of her book at Ralph Lauren because of her fondness for the designer.

“I worked for years at Ralph Lauren. He’s my favorite designer in the world.” As for why she’s reenter-ing beauty to launch a color line for women over 50, she said, “It’s such an ignored market, and we have all the spending power.” Referring to why past attempts in this space have fallen flat, Robinson said, “It hasn’t been presented properly. It’s been

done in a less than optimistic way.”“Toss the Gloss” is available on Amazon.

com and is rolling out to Barnes & Noble stores this month.

By JULIE NAUGHTON

THE FIRST House of Viktor & Rolf fra-grance shop-in-shop in the U.S. is slated to open Sunday at Saks Fifth Avenue’s Manhattan flagship.

The 147-square-foot space is intended to showcase all Viktor & Rolf fragrances, including the now-launching Bonbon, noted Alexandre Choueiri, president of International Designer Collections for L’Oréal USA, which holds the Viktor & Rolf fragrance license.

“It was a collaborative effort with our creative design teams to design a space that expresses the Viktor & Rolf spirit within the Saks Fifth Avenue protocol,” said Deborah Walters, senior vice presi-

dent and general merchandise manager for cosmetics, fragrances and intimates at Saks Fifth Avenue. “The shop represents glamour, provocative couture and ele-gance.” Bonbon, which rolls out this week at Saks, is also expected to do well, she said. “[Our customers react to] the unex-pected, highly creative, unique interpre-tation of femininity and the complexity of the creative to exert contradiction in the spirit of each fragrance. And, most im-portantly, they create amazing fragrances with unexpected combinations of ingredi-ents.” Bonbon’s bow-shaped bottle is both playful and strong, said Walters.

Located at the front of the retailer’s Fifth Avenue flagship, the shop-in-shop’s neighbors include Chanel, Hermès and Cartier. Color cues take their lead from the

fashion side of the brand, noted Choueiri.“Customer experience was a prior-

ity, and we added a sense of fun, whimsy and theater to the space,” added Walters. “A few examples are the whimsical and elaborate Carousel of Bonbon bottles in a constant circular rotation, the elaborate and interactive wrapping station that in-cludes a personal touch from V&R with their wax seal, and the incorporation of value and engagement through a beautiful ‘Re-fill’ station in the heart of the shop.”

The retailer has long seen success with the Viktor & Rolf fragrances, said Walters. “Flowerbomb continues to hold the distinction as our number-one vol-ume, single women’s fragrance launch at Saks Fifth Avenue,” Walters said of the fragrance, which launched Stateside at

Saks in 2005. “Viktor & Rolf continues to be a very important designer fragrance brand at Saks.”

In addition to prime positioning in the new shop-in-shop, Bonbon will get addi-tion support in the form of “an extravagant window and interior visual statement” from April 10 to 23 and a Viktor & Rolf per-sonal appearance on April 17, said Walters.

By PETE BORN

THE COFOUNDERS of Caudalie are turning the page to the next chapter in the global develop-ment of the spa and skin-care company: Asia.

“We are going to Asia for two years,” said Bernard Thomas, who cofounded the Bordeaux vineyard-based company with his wife Mathilde nearly 20 years ago. He noted that the couple plans on making a move to Hong Kong in about 18 months, either in the summer of 2015 or in 2016.

Thomas asserted that the move is a necessity so that he and his wife can learn the market — “the geography, the people, the distri-bution, we need to understand all of it” — and apply their experience with the brand so the busi-ness can grow. “We cannot talk about it, without knowing more about it.”

After spending three years in New York, the U.S. subsidiary is now profitable after growing sales 25 percent a year, basically doubling the North American busi-ness, he noted, declining to elaborate.

As part of the evolu-tion of Caudalie USA, the new loftlike office in midtown Manhattan will be the hub of the Americas, and Carole Silverman has been promot-ed to chief executive officer with responsibility for the U.S., Canada, Brazil and the rest of the Americas.

The U.S. subsidiary has been busy. This week, a new West Coast flagship boutique and spa opened for business in the hip neighbor-hood of Venice, Calif. Located at 1416 Abbot Kinney Blvd., the 1,000-square-foot space contains a boutique, a treatment room for facials and body treatments, a nail salon using the French brand Kure Bazaar and a tea bar. On April 8, Caudalie plans to open its first boutique and spa in Canada. It will be located in the upscale Quartier DIX30, an out-door mall in Montreal. This on the heels of opening the London boutique in February.

In Brazil, the company will open its third unit in May in Curitiba, following boutiques and spas in São Paulo and Rio. The same month, the company will enter Sephora Brazil.

Thomas had once reflected on the difficulty of making money in the U.S., but that is now behind him. “Making a profit in the U.S. was a problem of scale,” he said. Thomas declined to cite specif-ics but industry sources estimate that Caudalie generated about $30 million in retail sales in the U.S. last year.

The founders are thus free to explore the rest of the world outside Europe and the U.S. The company has an office in Hong Kong, and Thomas said the com-pany will be looking to estab-lish a spa there, and perhaps in Shanghai. Caudalie also has sub-

sidiaries in China and South Korea.

On the new prod-uct front, Caudalie

will launch a trio of antioxidation, antiaging prod-ucts later this month in com-pany boutiques and in full dis-tribution in May. The key ingredi-ent is Polyphenol C15. The company had patented its first grape-seed polyphenols in 1995 and maintains that these natural

molecules are 1,000 times more effective in fighting free-

radical formation than vitamin E, the benchmarked ingredient. In its latest incarnation, Polyphenol C15 is combined with a stabilized vitamin C, which is said to capture free radicals while protecting and stimulating production of collagen. It is also used to boost radiance and even out the complexion.

The trio of products includes: Anti-Wrinkle Defense Serum, which will be priced $66 for 30 ml.; Broad Spectrum SPF Anti-Wrinkle Protect Fluid, priced $49 for 40 ml., and Anti-Wrinkle Eye and Lip Cream, $49 for 15 ml.

Caudalie does not break out projections, but industry sources estimate that the new regimen could generate $10 million in U.S. retail sales in the first year.

By JENNIFER WEIL

PARIS — Prada’s sweet tooth shows no sign of satiating, as the brand is set to launch the third addition to its Candy fragrance franchise, called Florale, starting Tuesday.

The new iteration follows Candy eau de par-fum, which is more oriental, from 2012, and Candy L’Eau, a fresher offer that came out in 2013.

“We were looking for a more floral juice,” said Ana Trias, vice president prestige designers at Puig, Prada’s fragrance licensee. She also described the new fra-grance as “more powdery.”

“We wanted to bring this new ol-factive facet into the line,” she said.

Under the creative direction of Miuccia Prada, Givaudan perfumer Daniela Andrier cre-ated the Candy scents — each of which has a sweet signature. A mix of floral notes and honey comprise Florale’s juice.

“Through this launch, we’ve been able to extend [the] adver-tising story, [where] we go more into tenderness and sensuality,” continued Trias.

Léa Seydoux is featured in Florale’s ad that was lensed by Steven Meisel. There’s an out-of-this-world quest for a “cosmos flower” and candy defies gravity.

“The idea was inspired by a French comic book from the Sixties,” said Trias.

The spots, mostly destined for TV, come in 10-, 15- and 20-second versions. Meisel pho-tographed the single- and double-page print campaign as well.

Florale’s bottle is a slightly changed version of the other Candy flacons.

The new scent is due out first in Italy, with a three-week exclusive at Ethos beginning Tuesday. It will launch at Sephora in the U.S. on April 11, with the countrywide rollout then starting July 1. Florale is also to be intro-duced in April in markets such as Switzerland, Belgium and the U.K. Most countries will be selling the scent by October, although Spain, Portugal and China are slated for 2015.

The Florale eau de toilette will come in 30-, 50- and 80-ml. sprays that retail in France for 52 euros, or $71 at current ex-change; 70 euros, or $96, and 91 euros, or $125, respectively.

Puig executives would not discuss sales pro-jections, but industry sources estimate Florale will generate 15 million euros, or $20.6 million, in first-year wholesale revenues worldwide and that the Candy franchise will make $120 million at retail globally.

beautySaks Builds House for Viktor & Rolf Scents

Caudalie Sets Sights on Asia

A rendering of the Viktor & Rolf shop at Saks.

Prada Candy: Take Three

Robinson’s Guide to Beauty

The Prada Candy Florale fragrance.

Andrea Q. Robinson

The upcoming Caudalie trio.

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WWD.COM7WWD FRIDAY, APRIL 4, 2014

By BELISA SILVA

IN A DIGITAL AGE when shopping and social interaction are as simple as the click of a button, L’Oréal Paris execu-tives believe that the hair-coloring pro-cess shouldn’t be any different.

After launching in the U.K., France and Germany last year, L’Oréal Paris’ Preference Mousse Absolue is rolling out to the U.S. market beginning this week. The at-home hair-color product, dispensed with the press of a button, boasts a much longer shelf life than traditional dyes. Because the formula is housed in a dual-chamber canister that separates and eventually mixes a gel dye formula and developer, consum-ers can use the product for up to a year after the first application for touch-ups or to target grays.

“As the market leader, L’Oréal Paris in-troduces a breakthrough with the launch of Preference Mousse Absolue, the first automatic reusable hair color,” said Karen Fondu, president of L’Oréal Paris.

The 14-shade range was curated by L’Oréal Paris expert colorist Christophe Robin. Fondu added that she hopes Preference Mousse Absolue, which retails for $14.99, will “entice women to color their hair at home, igniting excitement in the category.”

Its packaging, which is inspired by Japan, contains about 26 separate parts, and features materials with a double casing of plastic and alumi-num to protect the formula from com-ing in contact with oxygen. To use it, consumers shake the canister, push the button and massage the mousse into their hair.

“Simplicity is the new luxury and

we really wanted to ultimately bring color back to her life in a way she hadn’t thought about it before,” said Malena Higuera, senior vice president of mar-keting for L’Oréal Paris.

Next month, L’Oréal Paris will begin to roll out advertising initiatives like an online “digital command center,” sam-pling via influencers, and a “disruptive in-store theater” with a “high-impact” display program.

“Hair color is an aisle she may not have walked through in some time so we need to seduce her in-store,” said Higuera. “We wanted to think about the market in a different way and bring ser-vice beyond the product.”

Although the brand would not break out sales figures, industry sources be-lieve it could generate more than $55 million via 23,000 doors in the U.S. The full rollout to the U.S. is expected to be completed by May 1. Two additional shades, a deep black and light natural brunette, will be added in June.

A QUIRKY PRODUCT that calls to mind Daft Punk is the latest success in beauty devices at retailers Ulta, Wal-Mart and Walgreens.

The illuMask Anti-Acne Light Therapy Mask and illuMask Anti-Aging Phototherapy Mask shipped into mass doors in February. According to illuMask parent company La Lumiére, some chains have sold out initial shipments. Wal-Mart is boosting distri-bution to 4,200 doors from 3,000. Target, as part of its upgraded skin-care presenta-tion, has moved up its launch date for the product to May 1 with a commitment for a two-month endcap.

“What makes this prod-uct different is its price and the fact you don’t have to hold the device to your face [as is required with many products in the luxury market],” said Jay Tapper, founder and chief executive officer La Lumiére. IlluMask’s patented design allowing for “wearable” treatments isn’t the first twist on traditional products for Tapper. The entrepreneur and inventor transformed other categories in-cluding toothbrushes with The Spinbrush and home draught beer with Tap King.

With a suggested retail of $30 for 30 uses, illuMask is significantly less expensive than upscale devices, such as the Tanda Clear+ Acne Treatment model, which retails on HSN for $195.

IlluMask’s design incorporating glass-es affixed to the mask offers hands-free use. “I wanted to create a device that would give everyone the opportunity to

experience advanced skin-care technology from the comfort of his or her home,” said Tapper.

The masks are designed to distribute precise LED

light waves evenly across the face during daily 15-minute treatments with red and blue light to treat and prevent acne and redness and infrared to stimulate skin-cell turnover and regeneration.

“The illuMask treat-ments are based on the same technology you’d

get from a dermatologist, but are designed for safe and easy use at home,” said Z. Paul

Lorenc, a board-certified plastic sur-geon who conducted clinicals on the tools.

Sales of at-home beauty devices across all markets exceed $800 million across all retail channels, according to research from Kline & Co. Sales of beauty tools within the mass market are growing at double-digit rates, according to retail buyers. Light therapy devices are a newer entry into the mass market, and join a growing category comprised of power cleansers, hair-removal applianc-es, hair-growth tools and electronic facial toners. So powerful is the potential of the category that Target’s new beauty depart-ments have a special device area. Ulta executives called at-home beauty tools a category with “tremendous potential.”

By KELLY WETHERILLE

TOKYO — Salvatore Ferragamo launched its newest fragrance, Incanto Amity, at a pop-up store in Tokyo on Tuesday. The store, located in a shopping com-plex at the intersection where upscale Omotesando meets quirky Harajuku, will be open through April 17, during which time it will be the only place in the world where the perfume will be sold.

Rollout will then continue throughout Asia, wrapping up in China in July and reaching a total of about 4,000 to 5,000 doors.

The opening event for the pop-up in-cluded a short performance by two child ballerinas who were accompanied by two women playing in unison on minia-ture grand pianos. The store is decorat-ed to match the fragrance’s bottle, with flower and hummingbird motifs in pastel hues of green, pink and yellow.

Incanto Amity is a fresh, citrusy fra-grance with top notes of Satsuma man-darin orange and Yubari melon, two

Japanese fruits. Middle notes of star jas-mine and white peach, and base notes of white cedar wood and white musk round out the scent.

Ferragamo Parfums chief executive of-ficer Luciano Bertinelli said the launch of Incanto Amity in Japan was a response to that market’s enthusiasm for the Incanto line in general, with many consumers col-lecting the assorted fragrances. “The vi-vacity, creativity and values that [Incanto] represents are especially appreciated by a young customer seeking ‘kawaii’ objects with a touch of extravagance,” he said.

Bertinelli declined to discuss sales projections for the eau de toilette, but industry sources said the fragrance could bring in 10 million euros in retail sales after a year on the shelf.

Prices are set at 6,000 yen for a 30-ml. bottle, 9,000 yen for a 50-ml. bottle and 12,400 yen for a 100-ml. bottle of the scent, or about $58, $87 and $119 respec-tively at current exchange.

— WITH CONTRIBUTIONS FROM CYNTHIA MARTENS

IlluMask Expands at MassL’Oréal Ups Color Proposition in U.S.

The illuMask Anti-Aging Phototherapy Mask.

Mousse Absolue in 654 Light Auburn Brown.

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CRITICALMASSBY FAYE BROOKMAN

Ferragamo Parfums Builds Incanto Brand With Amity

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10 WWD FRIDAY, APRIL 4, 2014

IN THE MIDDLE of New York City’s seat of power, two gleaming red Ferraris idled just outside Cipriani Wall Street.

Heartbreakingly, no one raced them. They were

there for display only, just two spectacular pieces of machinery, an F12berlinetta and a 458 Speciale, sitting pretty. The automaker was the sponsor of the New Museum

spring gala, which was taking place later Tuesday night. The theme was “Red or Racy.”

A young woman arrived wearing a lacy burgundy jumpsuit by Stella McCartney that was cinched at the waist. It was Frances Halladay herself, Greta Gerwig. She politely declined a cocktail because she said she didn’t want to have trouble getting out of her jumpsuit in the ladies’ room.

Gerwig tends to talk in circles, like a latter-day and more upbeat Annie Hall. She was asked if she’s attended any of the other major art exhibitions in the city, such as the Whitney Biennial or the Armory Show. “I actually have. On Saturday, I just saw —speaking of the Armory, though a different kind of Armory — I saw the xx show at the Park Avenue

Armory. I loved it so much. It was so indulgent to have all that space and just 50 people. It was beautiful. And to dance. I loved it so much. I was very moved,” she said.

She is a comedienne. Her sensibility, both serious and ditzy, was shaped by her first movies, small-budget dramedies that were later grouped under the label “mumblecore,” and reached its zenith in the movie she cowrote two years ago, “Frances Ha.” She is now moving into sitcoms, a spin-off, sort of, called “How I Met Your Dad.”

The museum gala was taking place a day after the series finale of “How I Met Your Mother,” the show that spawned Gerwig’s sitcom, where she’ll be a writer and producer. She’ll hear in a month if it’s going to be picked up as a series.

“I loved making it, though,” she said. “I really hope it happens. I’m

crossing all of my digits.”She got giddy again talking

about the finale. “I loved it. I loved it. No, I

loved it. I spent the whole three weeks leading up to the finale making Carter [Bays] and Craig [Thomas]” — the show’s creators — “not...they kept talking about it and I kept saying, ‘Please don’t tell me, don’t tell me.’”

She was not among those fans who took to social media to complain about the show’s ending.

“I mean, everybody I talked to loved it. Sometimes I feel like things happen on the Internet but not in the world,” she said.

Later, Gerwig introduced the singer Lykke Li. She probably loved it, loved it too.

— ERIK MAZA

GRAYDON CARTER has weathered the fickle winds of the Manhattan dining scene — discerning palettes, oversaturation, etc. — by sticking to a formula: refurbishing a storied spot with a new concept, new look and the same name. The Vanity Fair editor in chief and sometimes restaurateur is drawn to fixer-uppers with a past, dusting them off and repurposing them as eateries that are as much about the next-table-rubbernecking as about the food.

But at the Beatrice Inn, Carter’s most recent venture, there’s been a shift of late, with a refocus on the food since the hiring of Angie Mar, executive chef, in November. Mar rolled out a new spring menu this week. The shift is smart: A different approach is needed for the Beatrice, a spot with a more colorful and textured history than Carter’s previous acquisitions — and one the partners no doubt don’t want to repeat.

While at its inception it was a Twenties speakeasy and later an indistinguishable Italian spot, the Paul Sevigny era is remembered all too well: a door mobbed by a tangle of models, Olsens, art people and such. Inside, a dingy cellar constantly fogged up by dense cigarette smoke. It’s where the juiciest Us Weekly yarns of the mid-

Aughts were born. Unlike other sleek hot spots of the time, the Beatrice was rough around the edges and unpretentious. That was its charm. Though it shuttered after only three years — predictably, due to accruing noise complaints — for its brief

tenure, it pulsed with coolness like no other. When the club foundered in 2009, the clientele took it hard. It’s only recently that they’ve begun to warm up to Beatrice 2.0.

“The nightclub phase, I’m not familiar with. My kids are because we live around the corner so they knew the place,” Carter says. “I think the neighbors much prefer the restaurant to the old version. We wanted a

simple American chophouse, a quieter place just for the neighbors.”

Carter hasn’t always had such an egalitarian approach to his projects with the

Waverly Inn and, albeit less so, the Monkey Bar, both once renowned for the difficulty of securing a reservation. The Beatrice is aiming for something more approachable. “I mean, in New York City, nothing creates an appetite like unavailability,” Carter concedes. “But we wanted something accessible, that’s the way we designed it from the beginning.”

Carter and his partners, Emil Varda and Brett Rasinski, acquired the space in mid-2011. After briefly sparring with Sevigny over the rights to the name, the place was gutted and varnished as an old-timey supper club. It has a nostalgic quality to it, like a spot Neely O’Hara might stop by to glug Champagne between shows. The bar room

and adjacent dining room maintain the structure (read: low-ceilinged and snug) of the Twenties speakeasy, now outfitted in dark wood, leather and crackling fireplaces. The back room is airy with a skylight and potted plants.

After 18 months of renovations, the restaurant opened in November 2012, in the eye of Hurricane Sandy. “Instead of customers, we had sandbags protecting

the front door,” Carter says. “So we didn’t get up and running until about a week after our planned opening. We also had a rocky time with the food in the beginning.”

The kitchen turnover has been high from the start. Original hire Brian Nasworthy, a former sous chef at Per Se, was out after three months. Eric Korsh filled in as an interim chef for January and February 2013 until Hillary Sterling, an A Voce alum, was brought on. She left in November when Mar was hired.

Carter thinks they’ve finally hit their stride. “The food has been so good under her,” he says, noting the restaurant has been more packed in recent months. “The burger is off the charts. I think about it at night.”

Said burger, one of two on the menu, is in fact quite spectacular. It’s 45-day dry-aged rib eye, short rib and sirloin sourced from grass-fed cows in upstate New York, topped with a mound of onions that have been slowly caramelizing in red wine for eight hours. Underneath a slice of melty imported fromage d’Affinois, a close cousin to brie. The bun’s good, too. The dish is a mainstay of the menu.

There is also size-two-friendly yet toothsome fare. The radish salad, which premiered last week, is dressed

cleanly with sea salt, lemon and olive oil. The radishes are complemented with feta, mint, basil and a swirl of hickory smoked ricotta puree. “It’s so simple, but that’s the point,” says Mar, who last worked under April Bloomfield at the Spotted Pig. “We don’t want to mask the produce, drown it out. We want to keep the integrity of the ingredients. The thing is, these radishes are never going to be better than they are right now: bright, peppery and delicious. So why would we want to fuss with that?”

Mar’s culinary ethos is steeped in seasonality. She goes to the farmer’s market four mornings a week and crafts her dishes around what produce looks the best. “I picked that up when I was at the Spotted Pig and at Reynard,” she says. “At Reynard, these farmers from Massachusetts would come in at, like, one in the morning every night with these big garbage bags filled with produce. You never knew what you were going to get. And we’d just sort through it all and be like, ‘I want 10 pounds of this, I don’t want that, I don’t even know what that is but we’ll take it.’ It was like working on ‘Chopped’ or something.”

The menu doesn’t change daily, but rather, Mar gradually introduces new dishes with the turn of each season, after much trial and error. “I’ll find one ingredient that is just perfectly in season and I build a dish around it, that’s how we came up with our Chilean sea bass with the salt-baked Asian pear,” she says. “I became obsessed with these Asian pears. We didn’t know what we were going to do with it, but we had to work it in.” What she came up with was encrusting the pear in salt. The result is a salty-sweet innovation. “We cooked it literally a thousand different ways before I was like, ‘I have a kooky idea,’” she says. “‘Let’s bake it like you would a fish.’”

“Angie has a great deal of freedom within the space of that kitchen, which is about the size of a desk. It’s a miracle she does what she does in there. We trust her because her food is just so good,” Carter says of Mar, who isn’t obligated to run every variation by the partners.

“Plus, the customers are all coming back,” he adds. “Which

is a great relief.”— TAYLOR HARRIS

The Beatrice Blooms

Grilled asparagus served with a crispy duck egg and brioche gremolata.

Angie Mar seasoning the radish salad.

The 45-day dry aged burger.

PHOT

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PHOT

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Vixen by Night

Greta Gerwig in Stella McCartney.

FOR MORE PHOTOS, SEE

WWD.com/eye.

’’

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In New York City, nothing creates an appetite like unavailability.

— GRAYDON CARTER

DANZIGER DEPARTS: At 2:30 p.m. on Thursday, Self magazine’s editorial staff met their new editor in chief, Joyce Chang, who made the trek from her airy office in Hearst Tower to Condé Nast. Chang, who currently serves as Cosmopolitan magazine’s executive editor until April 18, entered the crowded conference room flanked by Condé Nast’s top brass: chief executive officer Charles Townsend, president Robert Sauerberg and artistic director Anna Wintour.

Although Chang doesn’t officially start until May 1, she addressed Self ’s editorial staff, who only hours earlier learned that Lucy Danziger had been let go after 13 years as editor in chief.

According to sources inside, Townsend led off the meeting, which was described as “somber” and “shell-shocked.” He called Danziger’s departure “very sad,” but added that it’s “time to move forward.” Sauerberg underscored the importance of Self and the fitness category to the company. Wintour thanked Danziger — who wasn’t at the meeting, but instead on her way to Miami to compete in a triathlon — as well as the editorial team for its hard work. She then introduced Chang, citing her résumé, which includes stints at Marie Claire,

People StyleWatch, People Magazine, Lucky, The New York Times Magazine and Allure.

Wintour said those magazines “gave her a great foundation” and taught Chang the “power of a strong and intelligent woman.”

Next up was Chang, who tried to “rally the troops,” a source said. Staffers were nodding in agreement — especially when the new editor expressed her excitement about the fitness category and offered a familiar battle cry to staff: “This is our time.”

While it’s too early to speculate exactly what Chang will bring to Self, it may be safe to assume that under Wintour’s gaze she’ll up the title’s luxury and fashion content — just as the other magazines that have been made over under Wintour’s watch, Lucky, Condé Nast Traveler and Glamour, have done. That seems to be a departure from Self ’s recent strategy, which included a launch of healthy frozen food meals.

Following the remarks, which ran about 20 minutes, Wintour and Chang stayed behind for another 20 minutes to answer questions from the

staff. They both urged the team to feel free to make contact going forward.

The tone of the meeting was very different from the one that transpired in the same Self conference room at 11:15 a.m. that morning, when Danziger bid farewell to her team. Although she admitted the meeting wasn’t easy, the ever-upbeat Danziger told WWD that she kept things positive and

that she’s ready to “move forward.”

“I’ve been at Condé Nast for 18-plus years, and I only have positive things to say. Obviously, I think that timingwise, you’re never thinking it’s time,” Danziger said, adding that she will likely remain in the “well-being” space across digital and

print platforms. Rumors about Danziger’s

future have swirled since Wintour began consulting on the brand last year. But trouble was looming even before Wintour stepped in. According to the Alliance for Audited Media, Self ’s newsstand sales fell 13.7 percent to 163,406 in 2013 from 189,247 the previous year, the latest in a string of declines. Sales in 2009 totaled 270,125, a 39.5 percent dip from 2013. To put it in perspective, rival Shape magazine logged newsstand sales of 208,006, a 6.9 percent increase over 2012.

The picture wasn’t much

rosier on the advertising side, which explained Thursday’s firing of Self vice president and publisher Lauren McEwen equally less-than-surprising. Last year, ad pages fell 5.7 percent to 853.37 from 905.43 in 2012, according to data from the Publishers Information Bureau. Year-to-date, pages have dropped 21 percent through May. A successor for McEwen has yet to be named.

A source said Chang has been interviewing at Self since January. Still, other sources familiar with the situation said Danziger’s dismissal came as a surprise to her. “It came out of left field,” said a source with knowledge of the relationship between Danziger and Wintour. “There was no friction.”

The source pointed to a “friendly meeting” that took place with Wintour just last week. Such meetings had taken place on a monthly basis without any indication of the sweeping changes.

But even Danziger noted that under Wintour’s guidance, a new chapter was emerging at Self, and that her exit was part of a “changing out.”

“I’m looking forward to the next chapter,” an upbeat Danziger said.

Chang wasn’t available for comment, but Joanna Coles, editor in chief of Cosmo and her former boss, said, “Joyce is an absolutely brilliant editor. I think Self is a starter magazine for her,” adding the other editors at Condé Nast “should be afraid,” since Chang

is destined to get even bigger titles. — ALEXANDRA STEIGRAD

LAGARDÈRE REDUX: Lagardère Active, a division of French media group Lagardère, has chosen the joint offer by Belgium’s 4B Media-Groupe Rossel and France’s Reworld Media Group for the sale of 10 of its publications, including Psychologies magazine and women’s monthly Be. The offer includes the transfer of all jobs working for the titles — around 300 across editorial and other departments — and the sale will be completed by Aug. 31, Lagardère said.

The buying offer specifies that the 10 magazines will be split. Psychologies and Première will go to 4B Media, owned by four Belgian media companies including the publisher of Psychologies and Elle in Belgium, while Be and other titles will be acquired by the French Reworld Media, which last year bought Marie Claire France magazine from Marie Claire Group.

“In line with what we are doing with our titles, we have digital and offline development plans for these magazines, both in France and internationally,” said Reworld Media president Pascal Chevalier.

Lagardère put the 10 titles on the block in October 2013 as part of a plan to focus on brands with a strong potential for digital development. Its flagship titles are the French edition of Elle and Paris Match.

— LAURE GUILBAULT

WWD.COM11WWD FRIDAY, APRIL 4, 2014

MEMO PAD

FASHION SCOOPS ECKO UNLTD. IN BANKRUPTCY PROCEEDINGS: Streetwear brand Ecko Unltd. and affiliated firms filed a voluntary Chapter 11 petition for bankruptcy court protection on Wednesday in a bankruptcy court in Trenton. Court documents said it had $30 million in assets and $62 million in liabilities. The filing was done under the name MEE Apparel LLC, the operating company that is a licensee of IP Holdings Unltd. IP Holdings is a subsidiary of Iconix Brand Group, which owns the intellectual property of the Ecko brand.

In an affidavit by Jeffrey L. Gregg, the company’s chief restructuring officer, he said declining sales and reduced profitability since 2009 hurt the company. He also said the plan is to pursue an “expedited sale process” of the company’s assets.

Seth Gerszberg, who controls the company, cofounded the brand in 1993 along with Marc Ecko and Marci Tapper. In a separate court filing, Suchman LLC, an entity owned by Gerszberg, is the stalking-horse bidder, having offered $11.3 million as a “credit” to forgive part of the debtor’s debt plus the assumption of certain liabilities for the Ecko assets.

— VICKI M. YOUNG

HEADING SOUTH: AmfAR will hold its annual Inspiration Gala in São Paulo tonight, where Sharon Stone, the organization’s global fund-raising chairman, is expected to be joined by the likes of Kate Moss, Naomi Campbell, Riccardo Tisci and Mary J. Blige, who will perform.

The Louis Vuitton-sponsored event is being held at the home of Dinho Diniz and will honor entrepreneur Nizan Guanaes and Vogue Brasil style director Donata Meirelles for their work in fighting AIDS.

Stone will preside over the live

auction, which will include such items as tickets to Givenchy’s spring women’s ready-to-wear show in Paris with an evening dress, accessories and a handbag designed by Tisci, a custom portrait by Brazilian artist Vik Muniz and a Richard Phillips surfboard. — WWD STAFF

TEAMWORK: Adidas Originals and Italia Independent have linked to create a new line called Adidas Originals x Italia Independent, to bow globally for fall. Andrea Tessitore, cofounder and chief executive officer of the publicly listed Italia Independent, said the collaboration marks a significant step in the internationalization of

the brand, as well as its “willingness of being a lifestyle brand” with the eyewear business at its core.

Italia Independent has collaborations with Colmar; Vertu phones; Borsalino hats;

Smeg kitchen appliances, and Ferrari for a tailor-made service, among others. This year, Italia Independent will open two single-brand shops in the U.S. — one in Miami’s Wynwood district and the other in New York’s SoHo — as well as its first French single-brand shop in the Paris Saint-Germain district. — LUISA ZARGANI

GETTING BIGGER: Brunello Cucinelli will unveil the brand’s first comprehensive lifestyle collection on April 11 in Milan during the city’s international furniture and design show, the Salone del Mobile. While the company has had a number of cashmere plaids and pillows in stores in the past, the collection that will be presented for spring at Brunello Cucinelli’s boutique in Via Spiga has been expanded and fine-tuned, and will comprise blankets, boxes, candles and several home accessories. — L.Z.

FOR MORE SCOOPS, SEE

WWD.com.

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another avenue of growth. Baker said there will be an accelerated expansion of the group’s omnichannel efforts and a focus on the top 10 doors of its Saks, Lord & Taylor and Hudson’s Bay depart-ment store brands.

HBC has earmarked an additional 40 million Canadian dollars, or about $36 million, in incremental spending for 2014 “to better complement our strength in traditional stores,” according to Donald Watros, president and interim chief fi-nancial officer. Overall capital expendi-tures this year will total between 380 mil-lion and 420 million Canadian dollars, or about $340 million to $376 million.

Part of that expenditure could go to upgrading the Saks flagship in New York. HBC plans to spend $250 million to reno-vate the flagship. Contrary to previous reports, the renovation will include con-verting the basement to selling space.

Nordstrom, meanwhile, will launch rack.com in May. The Rack is growing in other ways, too. “It’s a persistent offer from the Rack,” Pete Nordstrom said, adding, “We’re not trying to get very siloed about these channels.” Accepting returns from nordstrom.com at full-line stores is connecting physical retail to on-line. The company, which owns flash-sale site HauteLook, has allowed online shop-pers to return products to Rack units. The result has been unexpected. “When we enabled HauteLook returns to go to any Rack store, we saw that 50 percent of the customers are new. That’s the suc-cess,” he said. “We have HauteLook cus-tomers who aren’t Nordstrom customers.”

With 117 full-line stores in the U.S., Nordstrom admitted that “the goal is not to have a store in every state. That is the humbling part. [But] if you don’t have a store in Manhattan, it’s as if you don’t exist.

“Besides Canada and Manhattan, we’re opening full-line stores in Milwaukee; Jacksonville, Fla.; Puerto Rico, and Houston,” Nordstrom said. “By and large, we’re in all the places we need to be. This is not where growth is coming from.” The full-line stores did $7.7 billion last year. Online did $1.6 billion, a 30 percent in-crease, and HauteLook did $280 million.

Nordstrom was supposed to open Rack stores in Canada next year but has delayed its market entry until 2017 in order to focus on opening its full-line stores there. Nordstrom plans to open six Canadian department stores, starting with a location in Calgary in the fall.

Baker is ready for the competition from Nordstrom in Canada, believ-ing HBC knows the market best. “The Canadian opportunity is substantial and there is no retailer better suited for this expansion than HBC. We have existing real estate, logistics, IT, call centers and linguistic capabilities as well as an understanding of how busi-ness is done in Canada.”

Here, a detailed look at HBC’s results and more on Pete Nordstrom’s speech:

HUDSON’S BAY CO.HBC’s fourth-quarter results were the first since it bought Saks. Largely on costs associated with the acquisition and inte-gration of Saks and related financing, net income for the quarter fell 66.5 percent to 86.8 million Canadian dollars, or $87.5 million, in the year-ago period. Adjusted net earnings for continuing operations fell 16.5 percent to 81.5 million Canadian dollars, or $76.3 million, from 97.6 million Canadian dollars, or $98.3 million.

With the addition of Saks, revenues ex-panded 73.6 percent to 2.41 billion Canadian dollars, or $2.25 billion, from 1.39 billion Canadian dollars, or $1.4 billion, in the

fourth quarter of 2013. U.S. dollar amounts have been converted at average exchange for the periods to which they refer.

Gross margin receded to 36.8 percent of sales from 37.6 percent, but rose 80 basis points independent of the effect of purchase price accounting connected to the Saks acquisition, in part because of the higher gross margins generated by Saks’ retail operations.

Comparable-store sales increased 6.6 percent. Hudson’s Bay comps rose 5.2

percent and Saks’ advanced 3.1 percent on a U.S. dollar basis, while L&T’s de-clined 1.3 percent on the same basis, fail-ing to “rebound as we had anticipated” as the fiscal year ended and inclement weather persisted, the ceo said.

Baker told WWD that first-quarter trends have been similar to those at the end of the fourth quarter. “Saks Fifth Avenue is off to quite a strong start,” he said. “We’re seeing strong demand for luxury products in the U.S. The better customer is willing to spend for unique and luxury-type items, and that’s helping us drive that business.”

NORDSTROMNordstrom’s trajectory to an omnichan-nel perspective began with the launch of its Web site in 1998, and continued with direct shipping from stores in 2005. “In 2008 to 2009, we had one view of the in-ventory,” Nordstrom said. “That’s been a big competitive edge. It’s a much more efficient way to view inventory.”

Nordstrom said he realized in 2010 that the way the customer defined service had changed. The customer valued speed and convenience. “If we didn’t make this a core competency, we were doomed,” he said. “We got aligned around speed and convenience.” Around this time, Nordstrom realized that “Amazon was the new standard-bearer for what’s happen-ing online,” he said. “We got clear about who we were competing against. We went to free shipping and free returns. I don’t know how you can’t do it, because we had integrated platforms that allowed us to do these things faster.”

Speed and convenience means deliv-ering merchandise in shorter periods of time. “Now it’s three to five days,” Nordstrom said. “It’s OK today, but a year from now, if you can’t deliver in one or two days…” Nordstrom has earmarked $1 billion for technology upgrades. Nordstrom said 25 percent of online business is done via mobile.

The much-anticipated New York store, which opens in 2018, will have entrances on 57th Street and Broadway. The first seven floors will be devoted to the department store, with two below grade and five above.

Nordstrom said the store is on track and in the approval and permitting stag-es. “It’s happening,” he said. “There’s a hole in the ground. We’re working on design. We will have restaurants. We’ve nailed down the literal footprint of 285,000 square feet.”

Another brand with a store in its future is HauteLook. “The idea is, if you’re a pure play online, in order to grow, you need a physical presence,” Nordstrom said.

Nordstrom, Saks Seek Growth in Off-PriceWWD.COM

WWD friday, april 4, 201412

Bangladesh, the third-largest apparel supplier to the U.S., saw its apparel im-ports drop 10.2 percent to 136 million SME. The last time the country’s imports to the U.S. had such a significant drop was April 2012.

According to Nate Herman, vice presi-dent of international trade at the America Apparel & Footwear Association, “You have companies with a significant amount of business in Bangladesh like H&M, Gap and Wal-Mart that are committed to stay-ing there, but you also have a lot of com-panies that were trying out the market for the first time [or had a small percentage of apparel production], and they have since made the decision to pull out until things settle down there.”

The Alliance for Bangladesh Worker Safety, which includes Wal-Mart Stores Inc., Gap Inc., VF Corp. and Target Corp., said Thursday it has added 12 new offi-cials ranging from government and labor to business and international organiza-tions to its board of advisers.

The alliance, with 26 company mem-bers, represents one of two industry safe-ty initiatives launched in the aftermath of two factory tragedies in Bangladesh that claimed the lives of more than 1,240 workers and thrust the Asian country’s garment industry and inadequate fire and safety standards into the global spotlight. In recent months, lawmakers and worker and labor rights groups have criticized the alliance for not having labor and union representation on its committees.

Among the new board members are Avedis Seferian, president and chief ex-ecutive officer of Worldwide Responsible Accredited Production (WRAP), and Rick Darling; executive director of government

and public affairs at Li & Fung Trading Ltd.“The combination of their individual

perspectives and breadth of expertise across government, women’s issues, labor and global development will help us im-plement our comprehensive commitment to a safer ready-made garment industry in Bangladesh,” said Ellen Tauscher, in-dependent chair of the alliance.

The board of advisers will oversee the group’s goals, including inspecting all garment factories its members use by July. To date, more than 40 percent of those 700 factories have been inspected. In addition, training programs have been launched and a worker help line will be rolled out in 50 factories this month. The alliance said it is also providing techni-cal support and has established oversight of the remediation at factories that need to be upgraded and improved.

The overall U.S. trade deficit widened to $42.3 billion in February from $39.3 billion.

Trade was also in the spotlight on Capitol Hill, as House lawmakers focused on the Trans-Pacific Partnership nego-tiations between the U.S. and 11 coun-tries and voiced concerns to U.S. Trade Representative Michael Froman over Japan’s apparent intransigence to open-ing its agriculture and automotive mar-kets, arguing it is slowing down the talks.

At a House Ways & Means Committee hearing, chairman Dave Camp (R., Mich.) said Japan is “significantly holding up progress on TPP” and giving other coun-tries such as Canada “an excuse” not to open its market.

“If a country is not ready to make a commitment then, in my view, we should complete the TPP without that country and allow them to join later if and when it is ready to make the necessary commit-

ment,” Camp said.Froman, seemingly sending Japan a

message, said, “We can’t have one coun-try feeling entitled to take off the table and exclude vast areas of market access while the other countries are all putting on the table more ambitious offers. We’re being plenty creative in coming up with ways to ensure comprehensive market

access to Japan and addressing political sensitivities as well. It is time for Japan to step up to the plate.”

Lawmakers also reiterated a need for a trade promotion authority bill, which most argue needs to be passed before Congress will take up the TPP trade pact.

— WITH CONTRIBUTIONS FROM ARTHUR FRIEDMAN, NEW YORK

Industry Imports See Drop From China, Bangladesh

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We will deliver true fashion and real value in an easier-to-shop, treasure-hunt type of

environment.”— RichaRd BakeR, hudson’s Bay co.

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