A look At the costumes in the upcoming film “snow white And the huntsmAn.” pAge 9

MIRROR, MIRROR

PLUS: JaMeS

CURLeIgh Of Keen

naMed tO head

LevI’S bRand. Page 2

WWDDream SequinsIt’s the holiday season for the bridge market, and designers are getting festive with all sorts of shine. here, Michael Michael Kors’ studded polyester jacket and rayon dress with paillettes. Shoes by Kors Michael Kors. for more, see pages 4 and 5.

WEDNESDAY, MAY 30, 2012 ■ WoMEN’S WEAr DAilY ■ $3.00

PhOtO bY JOhn aQUInO; StYLed bY antOnIa SaRdOne

a big quarter

neiman’s net Leaps,Sets Cusp Strategy

By DAviD MoiN

NEiMAN MArcuS iNc. posted another winning quarter on Tuesday, reporting a 35 percent profit gain and a 6.7 percent comparable-store sales increase for the period ended April 28.

in the latest quarter, Neiman’s experienced in-creased full-price selling, an 80 basis-point im-provement in gross margins, reduced expenses, and strength in contemporary sportswear, designer hand-bags, shoes and beauty. Neiman’s ranks among the world’s most productive retailers, generating $530 in sales a square foot last quarter, up almost 8 percent from $490 a year ago. The retailer also said it’s see-ing payoffs from Web site improvements, including quicker navigation, personalized e-mails and targeted display advertising.

For the fiscal quarter, which was Neiman’s third, net earnings came to $626 million, compared to $46.2 million a year ago. revenues were $1.06 billion ver-sus $983 million a year ago. The performance fol-lowed a strong holiday season where earnings prac-tically doubled and comps increased 9 percent. The strong performance comes as there is growing specu-lation the retailer could be contemplating an initial public offering, perhaps as soon as this year. Texas Pacific Group and Warburg Pincus bought Neiman Marcus inc. in 2005 for $5.1 billion.

While the performance overall was impressive, there were pockets of concern. Executives saw soft-ness in fine apparel, which is Neiman’s designation for designer merchandise at higher prices; some decline in New York’s European tourism stemming from Europe’s financial turmoil at the Bergdorf Goodman division, and some slowing down in sales overall in the latter part of the quarter. The first part of the season was pumped up by unseasonably warm weather driving sales of spring merchandise, and an earlier Easter.

“As we moved through the quarter, sales began to SEE PAGE 12

Hermès’ Generational Shift

SEE PAGE 12

By JoEllE DiDErich

PAriS — hermès international said Tuesday it was handing over the reins of the company to the sixth generation of descendants of founder Thierry hermès but, in keeping with its 2012 theme, the French luxu-ry house has given itself the gift of time to ensure a smooth hand over.

hermès chief executive officer Patrick Thomas told the company’s annual general meeting that hermès chief operating officer Axel Dumas, 41, would be named joint ceo in June 2013 for an unspecified period of time before taking over the role completely.

“i am certain that Axel has all the requisite tal-ents to head the company,” Thomas told shareholders gathered at the Palais des congrès in western Paris.

Meanwhile, Bertrand Puech, 76, the executive chairman of Emile hermès Sarl — which represents the family shareholders — said he would step down in favor of his nephew henri-louis Bauer, 46, effec-tive July 1.

“The mandate of executive chairman of Emile hermès, which was handed to me five years ago, has been for me essentially a mandate of transmission from the fifth to the sixth generation. it is therefore time for me now to step aside,” Puech said.

Both decisions were approved last Thursday at a meeting of the board of Emile hermès, but were the fruit of a long-term strategy, senior hermès officials said on the sidelines of the meeting, where a giant screen displayed images from the brand’s 2012 cam-paign, carrying the tag line “The Gift of Time.”

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WWD.COM2 WWD WEDNESDAY, MAY 30, 2012

Curleigh to Take Helm of Levi’s Brand

Retailers, Factories Feel Effects of Italy Quakes

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 ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.VOLUME 203, NO. 111. WEDNESDAY, MAY 30, 2012. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, October and December, and two additional issues in February, March, April, August, September and November) 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 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. 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 all request for reprints of articles please contact The YGS Group at condenast@theygsgroup.com, or call 800-501-9571. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

ON WWD.COM

THE BRIEFING BOXIN TODAY’S WWD

Neiman Marcus Inc. reported a 35 percent rise in profit and a 6.7 percent comparable-store sales gain for the quarter ended April 28. PAGE 1 Hermès International said Tuesday it was handing over the reins of the company to the sixth generation of descendants of founder Thierry Hermès. PAGE 1 James Curleigh has resigned as chief executive officer at Keen Footwear to become president of the $4 billion Levi’s brand at Levi Strauss & Co. PAGE 2 The highlight of high society in Beijing last week was the awarding of the Pritzker Prize to Chinese architect Wang Shu. PAGE 6 Ittierre SpA is mapping out an aggressive global retail expansion for the brands it produces under licensing agreements. PAGE 6 Zadig & Voltaire founder Thierry Giller pronounced the company’s new Madison Avenue flagship “too small” after just two weeks in business. PAGE 7 The Conference Board’s Consumer Confidence Index declined for the third-straight month and suffered its biggest drop since October 2011, falling to 64.9. PAGE 7 Frette chief executive officer Laurence Franklin discusses the future of the heritage brand. PAGE 7 Chinese consumers are willing to overlook a lack of authenticity when shopping for the big names in global jeans. PAGE 8 Colleen Atwood’s latest creations appear in “Snow White and the Huntsman.” PAGE 9 Pershing Square Capital’s William Ackman sees better days ahead for J.C. Penney Co. Inc. PAGE 9 The Duchess of Cambridge notched another new experience on Tuesday, attending her first summer garden party, hosted annually by the Queen. PAGE 11

Charlize Theron as the Queen in “Snow White and the Huntsman.”

EYE: WWD got an up-close look at several of the costumes created by Colleen Atwood for “Snow White and the Huntsman.” For more photos, see WWD.com/eye.

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By JOELLE DIDERICH and JENNIFER WEIL

QATAR’S BIGGEST shopping mall remained closed on Tuesday as authorities investigated a fire that ripped through its daycare center and other areas, killing 19 people, including 13 children, according to local media reports.

The Villaggio Mall, which opened in 2006, features attrac-tions such as the Venetian-inspired Gondolania theme park in addi-tion to brands ranging from luxury labels like Gucci, Prada and Louis Vuitton to high street chains like Zara, Gap and Marks & Spencer.

A spokesman for The Body Shop said the L’Oréal-owned brand’s store in the mall had been affected by the fire. “I do not know to what extent at pres-

ent,” he said. “But our staff are all safe. Our thoughts are of course with those less fortunate.”

A spokeswoman for Swedish fast-fashion retailer H&M said all its employees were unharmed.

“This is a tragic accident and our thoughts go out to the families affected,” she said. “According to the latest information we have re-ceived from our franchise partner, the store has not sustained any material damage. The mall will stay closed until further notice.”

A spokesman for retail-to-lux-ury group PPR, whose Bottega Veneta and Gucci brands are pres-ent in the Via Domo section of the mall, said none of its employees were harmed and its stores did not sustain any damages.

A spokesman for LVMH Moët Hennessy Louis Vuitton said it was still seeking information

about the potential impact of the fire on its employees and stores, but its partners in the region had been unreachable so far.

The Estée Lauder Cos. Inc.’s MAC Cosmetics- and Jo Malone-branded stores in the mall were not damaged, and none of its em-ployees were harmed in the blaze.

“It’s truly a tragedy that many innocent lives were lost,” said a company spokeswoman. “The Estée Lauder Cos. remain avail-able to show support of any kind to our retail partner Alhaya.”

Located in the western part of Doha, Villaggio receives an aver-age of 42,000 visitors daily and has an average footfall of more than 1.2 million people a month.

The fire has raised questions about safety measures in the huge shopping centers that dot the Gulf region.

By ARNOLD J. KARR

FILLING A LARGE void with an oversize personality, Levi Strauss & Co. on Tuesday appointed James Curleigh president of the flagship Levi’s brand and executive vice president of the company.

Curleigh, who’s been president and chief executive officer of out-door specialist Keen Footwear for more than four years, succeeds Robert Hanson, who left Levi’s in November and joined American Eagle Outfitters Inc. as ceo in January. Upon taking the post at Levi’s on July 5, Curleigh will re-port to Chip Bergh, president and ceo of the San Francisco-based jeans and sportswear giant.

Curleigh’s long hair, scruffy beard and often unstudied dress provide a dramatic contrast to his predecessor, the more buttoned-up Hanson, and would seem to make him a throwback to Levi’s latter-day roots in the Sixties countercul-ture. Yet, he comes to Levi’s with a reputation as a highly disciplined business executive who report-edly lifted privately held Keen’s volume to over $200 million.

Last year, he took the stage of WWD’s CEO Summit to the strains of Bob Dylan’s “Blowin’ in the Wind” and expressed admira-tion for his future employer once he began speaking. “Did anyone say, ‘I’d like a pair of pants that was invented during the mining era of 1873 in blue denim that will last a long time and makes me look cooler’? I don’t think so,” he said in a discussion of trans-formative brands.

Curleigh, now 46, joined Keen after seven years at Salomon Sports North America, where he served as president and ceo, and a two-year tenure at TaylorMade

Adidas Golf. Earlier in his career, he was managing director for Salomon in the U.K. and worked in the London offices of M&M Mars.

His tenure at Keen not only brought about an expansion of its sales and global footprint but also a diversification of its product line, both through brand extensions and innovative footwear products, such as the Newport, which combines a sandal form with toe protection.

Bergh described the new hire as “an inspirational brand leader with a proven track record of bring-ing innovative products to market while delivering strong results. His unwavering commitment to cre-

ative design and craftsmanship and his embodiment of our values make him a great fit for the Levi’s brand.”

Last year, the Levi’s brand was responsible for $3.95 billion of the company’s $4.76 billion in rev-enues, or about 83 percent of the total. The percentage is up from 79 percent in 2009 and 81 percent in 2010 as the Dockers brand’s share of volume has dropped to 12 percent from 16 percent.

While his appointment fills the biggest vacancy at Levi’s, it leaves a question mark hanging over per-haps the most challenging job at the company — turning around the troubled Dockers brand.

Anne Rohosy in February was ap-pointed president for commercial operations in the Americas and Europe but retained the presi-dency of the Dockers brand pend-ing the appointment of her suc-cessor. Dockers’ sales, once over $1.2 billion, were just over $570 million last year.

In other appointments dis-closed Tuesday, Joelle Maher, se-nior vice president of Americas Retail for Levi’s since 2009, was promoted to the new post of ex-ecutive vice president of the company and president of global retail, effective immediately, and Varun Bhatia was named chief human resources officer, effec-tive July 23. Both report to Bergh.

Maher will be responsible for all retail operations worldwide, including e-commerce and com-pany-owned, franchise and outlet stores. Her promotion brings Levi’s direct-to-consumer business under the roster of its ceo’s direct-reports for the first time. A veteran of Old Navy, Lucky Brand Jeans, Macy’s and Lord & Taylor, she joined Levi’s in 2007 as vice president and general manager of U.S. retail and led the company’s acquisition of the Most outlet stores, previously a part of the now defunct Anchor Blue/Hub Distributing organiza-tion. Levi’s owned stores and on-line sales last year contributed about $857 million to its revenues, or about 18 percent of the company total. That figure is up from 11 per-cent in 2009 and 15 percent in 2010.

Like Bergh, Bhatia is an alum-nus of Procter & Gamble Co., where he managed human re-sources for the global Gillette business unit. Most recently, he was vice president of human re-sources for Asia-Pacific at Kraft Foods Inc. At Levi’s, he succeeds Cathy Unruh, who’s left the firm.

Qatar Mall Remains Closed Following Fire

MILAN — Northern Italy is still shaking. Nine days after a 6.0 earth-quake struck in Emilia-Romagna, killing several and causing build-ings to collapse, a 5.8 earthquake was registered in the same region at 9 a.m. local time Tuesday, caus-ing further casualties. The tremors were noticeable in Milan, about 100 miles northwest, and numerous of-fice buildings here were evacuated as a precaution.

While Milan is considered Italy’s fashion capital, many re-tail and textile companies have

factories in southern Lombardy and Emilia-Romagna.

A spokeswoman for Blumarine, which has a factory in Carpi, close to the epicenter of the morning quake, said she had been unable to reach anyone there in spite of repeated calls. Stone Island, which has its headquarters in Ravarino, evacuated all employ-ees and was in the process of as-certaining possible damage, a spokeswoman confirmed.

Luca Bondioli, president of A.Di.Ci, an association of hosiery

companies near Mantova, said while the tremors have been very strong, no member companies had reported serious problems so far. A spokeswoman for clothing com-pany Castor, located in the same area, said the group had also es-caped damage from the quakes.

Giuseppe Zanotti’s factory in San Mauro Pascoli was far enough south to avoid any dam-age, a spokeswoman said. The same was true for Aeffe’s factory in San Giovanni in Marignano.

— CYNTHIA MARTENS

James Curleigh

Photos: Diane von Furstenberg, Lady Gaga, Ashley Olsen and Mary-Kate Olsen by Neil Rasmus/BFAnyc.com, Marc Jacobs and Sofi a Coppola, Jack McCollough and Lazaro Hernandez by Andrew H. Walker/Getty Images, Gwyneth Paltrow and Michael Kors by Sherly Rabbani/Patrick McMullan, Kate Moss by Rabbani and Solimene Photography, Tory Burch by Larry Busacca/Getty Images, Kanye West by Joe Schildhorn/BFAnyc.com, Jessica Alba by Clint Spaulding/Patrick McMullan

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6 WWD wednesday, may 30, 2012

Ittierre Puts Focus on Retail Growth

Resort 2013Emporio Armani: Giorgio Armani went back to the basics, balancing rigorous lines with fluid silhouettes. Cropped soft leather jackets were paired with simple cotton and linen pants, a fitted linen skirt with a matching double-breasted jacket. Breezier looks included a floral silk crepe de chine top with darted silk shorts.

Moschino Cheap & Chic: Creative director Rossella Jardini paid tribute to the eclectic culture of Great Britain, combining a traditional English countryside theme with psychedelic elements. There were crepe

de chine pieces in a romantic rose pattern, a wool sweater embellished with a geometric sequined collar and fluid tops done in oversaturated prints of country landscapes.

Just Cavalli: Roberto Cavalli found his latest inspiration on a recent trip to India, thus his Just Cavalli collection was full of prints of sacred elephant motifs, temples, exotic florals and, of course, animal patterns. To that he added a hip-hop vibe with jewelry motifs, baseball caps and silhouettes that range from baggy shorts to body-hugging dresses.

For more images, see

WWD.com/runway.

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LAsT wEEk, the highlight of high society in Beijing was the awarding of the Pritzker Prize. The event took place in the Great Hall of the People, the seat of the Chinese Congress. Out of national pride, the site has never been loaned to a non-Chinese event. And it just happened that the Pritzker went to a Chinese architect, wang shu, this year.

wang made quite a fashion statement by not wearing a suit. He was dressed in a black Mao-Nehru Jacket with black pants. His acceptance speech was also unusual. He said he feels that the fast-growing economy has erased Chinese culture. wang has spent the last 10 years work-ing with craftsmen in China, trying to preserve some Chinese heritage and craftsmanship. He considers himself an amateur architect and has stayed away from all commercial develop-ments in China.

I asked wang about his fashion sense. He said he likes traditional Chinese clothes because they are more comfortable than western suits. when asked whether he ever thought of wearing a suit, he said he does not own a tie. wang also has no business card. “Contact my wife,” would be his reply if you ask for a phone number. Old-school. Meanwhile, rumors are going around that wang’s ensemble is catching on; lots of Chinese tycoons are looking for the wang Look.

There is a Chinese-ness that has filled the atmosphere of Beijing recently. People are trying to look for their Chinese roots. wang’s award seems to put an emphasis on re-creating a Chinese lifestyle.

In London, a young Chinese fashion designer was applauded for exploring his Chinese roots in fashion design. Huishan Zhang’s Dragon Dress was acquired by the Victoria and Albert Museum as part of its permanent collection. It will be shown in the T.T. Tsui Gallery of Chinese art to show the progress in Chinese craftsman-ship from ancient times to the present.

It is natural that Chinese people, after mak-ing such remarkable economic progress, are

looking for their cultural roots. Unfortunately, the Pritzker and the V&A were overshadowed by a CCTV anchorman who was

openly calling for the expulsion of “foreign trash” on his weibo, the Chinese version of Twitter. His antics were protested by the expat community. The fact that a CCTV anchorman on the English channel can express prejudice so ve-hemently on a public platform was very disturb-ing. It should be duly noted that this anchorman wears a suit and tie most of the time.

so, looking for Chinese roots in design is quite different from calling for expulsion of “trash,” no matter what you’re wearing. And it should be noted that today’s xenophobe was yes-terday’s worshipper of all things foreign.

ChinaFile

Two Sides of China

by Huang Hung

ChinaFile

Wang Shu accepting the Pritzker Prize in Beijing.

MILAN — Ittierre spA is mapping out an aggressive global retail ex-pansion for the brands it produces under licensing agreements.

In the first half, the compa-ny plans to open four stores in Hong kong, three of which will be in the prestigious shopping mall Harbour City in kowloon: a Balmain Paris boutique, fol-lowed by a Pierre Balmain venue, each covering about 1,080 square feet, and the first Costume National flagship, which will be more than 2,160 square feet. A second Costume National store will open in the city’s luxury mall Landmark in the Central District.

In Italy, Galliano Men’s and Galliano women’s corners are ex-pected to open in La Rinascente stores in Rome and Florence, re-spectively, by the end of June.

with Coin department stores, Ittierre has inked an agreement for the opening of 15 directly operated cor-ners, comprising eight C’N’C Costume National and seven GF Ferrè, of which 13 opened in April and two in May. Thirteen more corners are ex-pected to be unveiled in cities from Milan and Florence to Rome and Vicenza.

In the second half, the company plans to open shops for Costume National, karl Lagerfeld Paris, Pierre Balmain, Galliano, C’N’C and Aquascutum in the world’s major shopping capitals.

Antonio Bianchi, president and chief executive officer of Ittierre spA, has been inject-ing new life into the company,

which, after two years of gov-ernment-backed bankruptcy protection, was acquired in January 2011 by Albisetti spA, founded and controlled by Bianchi. He has expanded the company’s license portfo-lio with signature collections for designers such as karl Lagerfeld and brands such as Balmain and rehired 600 em-ployees while exploring open-

ing stores for the first time.In December, Tommy Hilfiger

Group signed a global licensing deal with Ittierre to manufac-ture and distribute the design-er’s women’s and men’s runway collections. Ittierre, based in Pettoranello, Italy, will produce and distribute apparel and the majority of accessories, with distribution focused on Europe,

North America and Asia.sales in 2011 were expected

to total 150 million euros, or $208.5 million at average ex-change. Revenues of 200 million euros and 250 million euros, or $256.2 million and $320.2 mil-lion at current exchange, are forecast for 2012 and 2013, re-spectively, because of further development of the group’s li-censes. — LUISA ZARGANI

Since early 2011, Ittierre has expanded its license portfolio with signature collections for designers

such as Karl Lagerfeld and rehired 600 employees.

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WWD.COM7WWD wednesday, may 30, 2012

Confidence Down for Third Month

Q&A

Laurence FranklinZadig & Voltaire

Opens on MadisonBy Sharon EdElSon

nEW YorK — Zadig & Voltaire has landed on Madison avenue with a non-conformist thump.

The neighborhood seems to be lapping it up. after just two weeks in business, founder Thierry Giller pronounced the new 1,300-square-foot flagship at 992 Madison avenue “too small. The line is big. I need more space. I’m looking already for an-other shop on Madison avenue.”

The brand has a rock ’n’ roll vibe and produces two collec-tions a year with about 300 pieces in each. Giller expects the store to do between $5 million and $10 million in the first year.

“The way I see it, those [Upper East Side] customers need to have this kind of product,” Giller said. “Today on Madison avenue, we’re doing chic sportswear. I’m trying to build a story about a more casual way to dress every day for the Madison avenue customer.”

Charlotte Bonstrom assaf, U.S. brand ambassador and sis-ter of Zadig & Voltaire creative director Cecelia Bonstrom, said, “our customers are conservative uptown ladies. They’re going to buy the T-shirt with the cut out in the back. I think they’re ready for it. We have the same customers who shop at dior.”

Zadig & Voltaire designs are meant to look worn in “like a favorite piece you love so much you can’t get rid of it,” said assaf. a beige cashmere sweater for $495 looks comfortably worn with shredded edges, a pre-washed cotton bomber jack-et with double zippers is $390, and a pale green distressed leather jacket, $765.

While tuxedo jackets and cashmere cardigans with gold and bronze sequins are classic, Zadig & Voltaire uses tattoo shop and biker imagery generously. Suede handbags have metal skull closures, $230 to $270, and leather handbags have metallic wings, $395. “We love feathers, wings, skulls and but-terflies,” said assaf.

Giller said that uptown girls “still don’t want to go down-town,” but the symbolic line at 14th Street separating the city hardly exists anymore in terms of retail. “I opened Zadig & Voltaire on Mercer Street two years ago and now Yves Saint laurent and Balenciaga are coming,” he said, not to men-tion luxury brands such as Chanel, Salvatore Ferragamo and Prada that have outposts in Soho. Meanwhile, younger, edgier brands such as rag & Bone, Proenza Schouler and rebecca Taylor have invaded Madison avenue. “In Singapore, I’m next to Prada and louis Vuitton, and in hong Kong, I’m next to Miu Miu,” Giller said. “I’m bringing foot traffic to the luxe. I’m more for real people.”

With an $800 million infusion from Ta associates, a global growth private equity firm that last month signed an agreement to acquire a 30 percent stake in Zadig & Voltaire, Giller plans to open stores in los angeles, Miami, Boston, Chicago and aspen. The company oper-ates 200 stores worldwide.

Zadig & Voltaire, which produced a capsule jewelry col-lection designed by Gaia repossi, is working on a new line with “a top jewelry designer,” assaf said. It’s also developing a deluxe division of higher-priced items such as fur jackets and tailored, dressy and elegant pieces. Making the case that Zadig & Voltaire is for “people of every age, taste and life-style,” assaf picked up a T-shirt with the legend, “It’s only rock ‘n roll if you want it to be.”

By VICKI M. YoUnG

U.S. ConSUMErS are worried.The Conference Board’s

Consumer Confidence Index in May declined for the third-straight month and suffered its biggest drop since october 2011, falling to 64.9.

The index’s high for the year was in February when it was 71.6, and the consensus among econo-mists for May was that the index would tick back up to 70 from april’s 68.7. Consumers, however, showed anxiety about the jobs front. The labor department will release employment figures for May on Friday, and the jobless rate is ex-pected to remain at 8.1 percent.

The two components of the index each declined. The Present Situation Index fell to 45.9 from 51.2 last month. The Expectations Index, which measures consum-ers’ outlook six months out, de-clined to 77.6 from 80.4.

The chief concern is the labor picture. Consumers who said they expect more jobs in the

months ahead fell to 15.8 percent from 16.9 percent. Those who an-ticipate fewer jobs rose to 21 per-cent from 18.4 percent.

Chris G. Christopher Jr., senior principal economist at IhS Global Insight, said, “Consumer confi-dence remains well within reces-sion territory as more respondents of the survey think that their cur-rent and future employment pros-pects are significantly dimmer.”

he noted that “consumers face too many headwinds such as high debt burdens, depressed home prices, a lack of confidence in the government’s ability to make things better, volatile eq-uity markets, and rising student loan balances.”

Even with the downbeat U.S. report on consumer confidence, global equity markets stayed in positive territory.

In asia, research notes from hong Kong-based financial ana-lysts said that China could be readying a new stimulus pack-age helped to fuel market gains. The nikkei 225 rose 0.7 per-cent to 8,657.08, while the hang

Seng Index gained 1.4 percent to 19,055.46. luxury firm Prada Spa, which trades on the hong Kong exchange, rose 5.6 percent to $6.27.

Europe’s markets gained ground at the close of trading on Tuesday, still on a high from polls in Greece that showed growing support for pro-bailout parties. a second round of Greek elections is set for June 17.

The CaC 40 in Paris led the way, gaining 1.4 percent to close at 3,084.70, followed by the daX in Frankfurt, which was up 1.2 percent to 6,396.84. The FTSE 100 in london was up 0.7 percent to 5,391.14, while the FTSE MIB in Milan advanced 0.4 percent to 13,107.13.

In the U.S., the dow Jones Industrial average rose 1 percent to 12,580.69, while the S&P retail Index also was up 1 percent to 613.45.

Shares of Facebook Inc. ended the trading session down 9.6 per-cent to $28.84, below $30 for the first time since going public on May 18 when they closed the first day of trading at $38.23.

— With contributions from samantha conti

laUrEnCE FranKlIn has an agenda: he wants to make Frette the go-to brand for luxury linens, home accessories and at-homewear in the global marketplace. But he wants to grow the business selectively without forsaking the cachet and quality of the 152-year-old heritage brand.

Franklin, who was named chief executive officer of Milan-based Frette Srl in July 2011, is well versed in nurturing and growing market share for luxury brands, with more than 25 years of international management experience in the fashion, accessories and cosmetics industries. In 1986 he joined Tumi Inc., and through 1992 helped direct the brand through a tenfold growth rate. In 1993, he became president of Coach leatherware and three years later moved on to become general manager and executive vice president of the cosmetics businesses of Unilever managed through the Elizabeth arden division. In 1999, he rejoined Tumi as president, responsible for global strategic and creative development, served as ceo from 2002 to 2009, and was a member of the board at Tumi.

here, a conversation with Franklin on business and the future of the house of Frette.

— Karyn monget

WWD: What is the mood of consumers in the euro zone?Laurence Franklin: It’s definitely a somber climate…but where local business is flat or depressed, the compensation factor is tourists, asians and russians in our case. and they’ve been shopping quite aggressively over the past few years. Business is fairly stable but the base has shifted in favor of tourists.…The moneyed people are still active in local markets, and we do a lot of private client business and special projects for a new villa, yacht or private plane.…We’re

a nicely sized business that’s relative to the market — not a megabrand, that’s the beauty of Frette. We have our collections and have relationships with suppliers that allow us to do custom work in apparel and home furnishings.…We do a very nice business in loungewear, sleepwear and accessories for the boudoir, especially with young Middle Eastern women who have limitations with what they can wear in public, but at home can wear a trousseau in silks and satins as well as loungewear, which I call Frette-to-wear.

WWD: What changes have you implemented since joining Frette?L.F.: I’ve been working towards more discipline in terms of time tables such as sku [stockkeeping unit] management and wholesale margins, doing less things as well as possible than in a mediocre way.…It’s about focus, focus, focus and empowerment, letting the designers feel commercially responsible but working freely and working less for their own comfort zone and more for what consumers would appreciate. Everybody wants to be safe. how do you break down those barriers? You have to take measured mistakes so you don’t put the brand at risk. You have to be prepared to break the rules.

WWD: Frette has a combined 100 boutiques and shops-in-shop worldwide. are there plans for retail expansion?L.F.: Edmond Frette [a contemporary diffusion label] is being expanded at Bloomingdale’s 59th Street and to eight or 10 additional locations. The next stage over the next two to three years will be to open Frette stores in Texas, Florida, atlanta and hong Kong.…We’re developing a growth plan for investors and shareholders and looking at the right format for new retail

development.…Big stores are highly risky. You pay a lot of money for a building, rent and staff, and unless you do exceptional productivity it can be a drain. I’m a fan of small store formats.…They represent the brand well, you take a modest risk, provide the opportunity to consumers with a full representation of the brand, but you don’t overcommit in capital or people.

WWD: What is driving Frette’s business?L.F.: The total experience. It becomes a treasured Frette experience with things to wear in and around the house.…People experience it when they feel the sheets against their skin, towel off with a Frette towel or watch TV wearing one of our cashmere throws.

WWD: Please give an overview of Frette’s business.L.F.: Globally, the business does over $100 million annually, about 70 percent is consumer oriented and about 30 percent is B2B [hotel, hospitality and custom orders].…Geographically, we do 30 percent of business in north america, mainly the U.S. and Mexico, and 40 percent in Italy, France, et cetera, where we have our own operations. The rest is in up-and-coming markets.…We plan selective growth in 2013 to 2014.…hong Kong is a gateway market and it [China] has a strong domestic market where we have a good presence. We will expand in China with our partners.

Laurence Franklin

Inside the new shop.

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WWD.COMWWD WEDNESDAY, MAY 30, 20128

By LARA FARRAR

SHANGHAI — On the outskirts of this Chinese megacity near a massive shop-ping complex is a street lined with tiny stores selling cheap, yet ultrafashion-able clothes.

One of the stores on the street is called 2046 Boy. The store opened a few months ago, and specializes in clothes for young men. Specifically, it special-izes in blue jeans. The walls of the store are lined with super trendy styles — bleached, blasted, washed, ripped, boot-cut, relaxed, classic — from brands rang-ing from Levi’s and Dsquared2 to Ralph Lauren and Tommy Hilfiger.

They are all knockoffs or perhaps extra stock from factories that produce the real thing. Wang Xiao Dong, the owner of the shop, says he isn’t sure and that it doesn’t really matter anyway to his customers, who consist mainly of univer-sity students, migrant workers and blue collar professionals because, for them, “style matters more than brand” when it comes to buying denim.

“Most Chinese would love to pay a low price and get jeans with style,” Wang said. “Everybody has the right to look stylish. A lot of people who can’t afford real brands come to stores like this. It depends on people with different tastes.”

What is clear is that now, perhaps more than ever, Chinese have taste when it comes to the jeans they buy. Whereas

less than a decade ago jeans were viewed as drab, utilitarian requisite work clothes for the proletariat, today the country’s exploding populations of fashionable urbanites are decked out in denim that looks unmistakably designer.

Except it isn’t.On the streets outside of Wang’s store

are fashionistas from all walks of life and virtually all of them are wearing varia-tions of jeans that are undeniably hip, hipper and hipster.

Zou Wen Liu, a 20-year-old migrant from Jiangxi Province who works as a cook, has on a pair of no-name boy-cut jeans with crushed denim that he pur-chased for 200 yuan, or about $30, at a small store in Shanghai. He says he bought them because he likes “the shape and the style.”

Lucca Li, who is from the city of Wenzhou and works in international trade in Shanghai, is wearing skinny jeans with a dark wash and leather detailing on the back. She also paid around 200 yuan for them in a hole-in-the wall shop.

Yan Fang, who works in real estate, is from Shanghai and is around 30, is wearing a pair of jeans with a baggy cut and a faded wash, which she has paired with a green velvet jacket and a Louis Vuitton purse. She said she is familiar with Diesel and owns a pair of Dolce & Gabbana jeans yet still places empha-sis on look rather than label when she chooses to buy jeans.

In a country where consumers are

arguably the most brand-conscious shoppers in the world, everyone from migrants to secretaries to the superrich buys or aspires to buy expensive labels from luxury brands, which serve as symbols to communicate social status, taste and wealth.

So far, this does not appear to be the case with denim.

“Business is very bad and getting worse,” according to Jin Liang, who works in O’blu, a store in Shanghai’s stylish Xintiandi shopping complex that sells a number of upscale labels, includ-ing Seven For All Mankind, Ed Hardy, J Brand and Siwy Denim. “Fake jeans are eating away at the market. There are a lot of jeans available online that are fake, which is one of the reasons why customers don’t come here, and people don’t know much about brands.”

A quick search for “denim” on Taobao, China’s biggest e-commerce platform, yields over 8 million results. As for ven-dors on the site that specialize in denim, there are more than 51,000. New Man Hill is one of the most popular Taobao stores for denim. The average price for a pair of the jeans it sells is 70 yuan, or about $11. A number of stores say they sell authen-tic Levi’s and Lee jeans with prices much lower than those sold in malls.

Armani and Diesel are also available, though it’s unclear whether they are real or fake. However, according to sales fig-ures available on Taobao stores selling the brands, only a couple of orders have

been placed for such brands over the past month or so.

Even with an overall lack of brand awareness and unwillingness to fork over big bucks for expensive denim, for-eign jeans labels are, with varying de-grees of success, entering the Chinese market due to an overarching sentiment that the time is ripe to start marketing pricy pants to the nation’s consumers.

“Basically, Replay still has a large space in order to improve brand awareness,” said Matteo Sinigaglia, chief executive officer of Fashion Box SpA, the trademark owner of Replay, which has more than 40 stores on the Mainland and has been here for almost a decade. “At this moment, we are a niche brand in premium denim. In the premium segment, our brand aware-ness is very high, but in the general denim industry, definitely not.”

Sinigaglia said the many fake de-signer jeans flooding the market are a concern. However, what could soon be an even a greater concern are local brands, which are quickly becoming more sophisticated in the denim prod-ucts they offer at prices much lower than their foreign competitors.

“There is no specific [Chinese brand] name yet,” he said, “but I believe soon-er or later there will be a big brand name. Perhaps very soon.”

Robin Kosari, ceo of Hong Kong-based Golden Win Group Ltd., noted dur-ing his presentation at the WWD Denim Summit in April that Chinese consumers spent about $5 billion on jeans last year. However, while accounting for between 18 and 20 percent of worldwide denim units, that translated into just 9 to 10 per-cent of dollar or yuan value, implying an opportunity to trade up as the country’s young middle class grows.

A trip to a denim manufacturer out-side of Shanghai makes it clear why many more foreign players may soon not be able to compete with domestic brands. The owner of the factory, which produces jeans for a number of mid- to high-level brands in Europe, requested that his name and the name of his fac-tory not be used in this story.

He recently formed a team to show-

case the high-quality work from his fac-tory to Chinese labels that he said are already starting to make jeans with qual-ity similar to brands like Diesel. These labels not only pay higher prices to manufacturers than foreign brands, but they are also able to sell the same quality jeans at far lower prices in the Chinese market, he said.

“They [Chinese brands] see our stuff, and they fall in love immediately,” he said. “What they have had in the past in their stores was s--t. Now their col-lections are going upwards a lot. Local brands are not stupid. They are stealing people [who manufacture for] Inditex or Diesel. They are upgrading themselves and trying to fight with those brands.

“For a supplier like us, we don’t care,” he added. “What we care is that we have enough orders to feed us and that the orders are profitable. If we can sell the same jeans with better margins than European brands, we will follow the do-mestic brands.”

Among the biggest domestic jeans brands is Lan Yan, which is produced by Lan Yan Group, one of the country’s big-gest denim manufacturers. Black Peony Group, which also produces for a number of foreign denim labels, also has its own labels called Roador and ERQ.

Another challenge confronting for-eign niche players in China is that there is simply nowhere to sell their products. Monobrand rather than multibrand stores remain the main option for retail-ers here, which is a problem for niche players accustomed to selling their jeans in high-end department stores.

“The multibrand business has just started in China,” said Nicole Chen, head of NC.Style, a Beijing-based com-pany that helps niche brands enter the Chinese market. “You can see some quite interesting concept stores in Shanghai and Beijing or even Hangzhou, so it is starting but it is still too small. We cannot do much business.”

Chen has attempted to bring labels from Japan to China, including a denim brand called Caqu (pronounced sock-you). She says she hasn’t had much success so far.

“The name of the jeans is not really that important to consumers here yet,” she said. “Only the rich people, they probably go to Louis Vuitton or Dolce & Gabbana, but they do not really under-stand what the difference is between jeans brands and luxury brands’ jeans.”

Which is why stores like 2046 Boy may, for some time to come, be China’s biggest success story when it comes to selling denim. Wang, the owner of 2046 Boy, appears to be acutely aware that he is well positioned to sell to a consumer market that does not care where jeans come from as long as they are stylish and cheap.

“I don’t even know if there is a real authentic Levi’s factory in China,” he said. “There are a lot of Chinese jeans brands, and there are a lot of factories.”

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2046 Boy’s Wang Xiao Dong.

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LOS ANGELES — “Snow White and the Huntsman” costume designer Colleen Atwood talks with WWD about her intricate creations for

the film including this beetle-wing dress — yes, they’re real — made

with silk taffeta and shreds of silk chiffon worn by Charlize Theron’s evil Queen Ravenna. For more on the movie, which opens Friday, see page 10.

PHOTO BY STEFANIE KEENAN

ACKMAN ON PENNEY’S: In an interview Tuesday on CNBC’s “Squawk Box,” William Ackman, founder and chief executive officer of Pershing Square Capital Management, said J.C. Penney Co. Inc.’s same-store sales, down 18.9 percent in the first quarter, have likely “hit bottom” and that the company should “start to see real progress early next year.”

He emphasized that the company had to change the image of its brand and the experience in the store before it can attract the best vendors, but it couldn’t do that due to what was an extremely promotional environment at the retailer. Ackman called the change a “difficult transition,” adding that consumers will start to see change in August when new product ordered under ceo Ron Johnson’s management team start to hit the sales floors. In addition, the company in August will reveal the new in-store shop brands, as well as new technology impacting the customer experience.

Ackman said he has a “lot of patience” in terms of waiting for the strategy to gel, emphasizing that “it takes time to educate the customer. Time is your friend because eventually, people will get it.” — VICKI M. YOUNG

ALL ABOARD: Summerlike as it was Tuesday, Coco Rocha could be found modeling Dennis Basso furs and ready-to-wear in the antique cars of the Essex Steam Train in Essex, Conn. Lensman Bernard Hunt shot her, Lori Goldstein took care of the styling and Kabuki dealt with makeup for the designer’s fall ad campaign. Basso said the vintage railway setting was the right backdrop for his fall collection, and the fact that Annie Leibovitz used the trolly a few years back for Vogue didn’t hurt either.

Basso said he and Rocha struck up a conversation over dinner at the Met ball. “What I loved about her was while practically everyone else was wearing

borrowed dresses she was wearing an outfit she had bought at the Elizabeth Taylor auction at Christie’s. I thought, ‘That’s a great thing,’” he said.

Numbers were exchanged and three weeks later the model was posing in a town with a population of 6,500. Reached on the set Tuesday, Basso admitted, “It’s a million degrees,” but he declined to say how much he was spending on the ad

campaign. Rocha’s ads will debut in

Harrods magazine before they hit American publications.

Having featured Naomi Campbell and Maggie Rizer in previous campaigns, the designer is counting on Rocha to help usher in the 30th anniversary of his company, which he will celebrate next year. — ROSEMARY FEITELBERG

Fairest of Them All

KORS, SPANISH STYLE:

Michael Kors celebrated the opening of his

first store in Madrid.

PAGE 11

Coco Rocha in an outfit that once belonged to Elizabeth Taylor.

{Continued on page 11}

10 WWD WEDNESDAY, MAY 30, 2012

IF COLLEEN ATWOOD’S name sounds more familiar than other costume designers’, perhaps it’s because she has won three Oscars in the last nine years, a higher bat-ting average than Meryl Streep’s. The winning films — Tim Burton’s “Alice in Wonderland” and Rob Marshall’s “Memoirs of a Geisha” and “Chicago” — represent long-time collaborations with A-list directors, and her latest project for Burton, “Dark Shadows,” is in theaters now. But the Atwood movie that seems to have fans in a frenzy at the moment is “Snow White and the Huntsman,” a dark retelling of the fairy tale starring Kristen Stewart, Charlize Theron and Chris Hemsworth, due in the-aters Friday.

A lucky few got an up-close look at several of the costumes on display in a “Snow White” promotional pop-up gallery in Hollywood, which will remain open until June 3, where Atwood detailed the work that took nine months to complete.

“I started with the suits of armor because I needed about 600 of them for two armies,” she says. “Six months into it, I started on the rest.”

“The rest” are the real show-stoppers. Theron’s Queen Ravenna costumes, which rival Paris couture with intricate embroidery and me-ticulously placed embellishments ranging from hundreds of leather paillettes to thousands of hand-trimmed cock feathers and edible

beetle wings. The jewelry was cus-tom made by Cathy Waterman.

“There’s always a buzz in the room when an actress puts on a costume. Sometimes they’ll do a little walk-around for the staff. You don’t make clothes like this alone, so it’s nice for everyone to feel like they’re a part of it,” she says of the U.K.-based team that made the gowns.

Stewart’s Snow White wears the same servant girl’s tunic for most of the film, but Atwood made 25 versions to account for the physical role. Even Theron need-ed three leather and beetle wing gowns for the climactic battle scene. While it may cause many a seamstress to wince at hours of handiwork being destroyed for one shot, the upside is costumes becoming immortalized on film.

With “Snow White” behind her, Atwood will next turn to a remake of a slightly more mod-ern fairy tale — the charmed life of Nick and Nora Charles in Rob Marshall’s remake of the “The Thin Man.” The film is dutifully set in the Thirties with Johnny Depp stepping into the lead role originated by William Powell (Myrna Loy’s successor has yet to be named.)

“You can find something that’s amazing in every time period,” Atwood says. “There are always things to compel you and drag you into another world.”

— MARCY MEDINA

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MIRROR MAGIC

Kristen Stewart in “Snow White and the Huntsman.”

The wedding dress’ papier-mâché details.

A dress with leather “scales” worn by Charlize Theron in the film's climactic battle scene.

A wedding dress worn by Theron inspired by bones and skeletal shapes.

A scene from the film.

Colleen Atwood

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TOMMY’S FAIRWAY: Tommy Hilfiger is elevating its golf game. The company has signed a sponsorship deal with the Golf Club at Chelsea Piers in New York. The arrangement, which runs through December 2013, includes prime advertising placement for the spring 2012 golf campaign featuring Keegan Bradley, Hilfiger’s golf ambassador and the 2011 PGA Championship winner. Ads will run from the West

Side Highway to the tip of the 200-yard fairway, including entrance signage, parking garage banners, tee divider patches, tower banners, point of sale graphics and elevator doorwraps.

“The Golf Club at Chelsea Piers is an iconic spot for New York golfers and a great location to showcase the golf collection,” said Tommy Hilfiger. Officials at Hilfiger, wholly owned by PVH Corp., declined to reveal the cost of the sponsorship.

Golf Club staff, including 12 golf professionals, will be outfitted in Hilfiger Golf men’s and women’s apparel. Merchandise from the collections will also be sold in the New York Golf Center pro shop at Chelsea Piers. Hilfiger Golf was relaunched in North America last year in a licensing deal with Fletcher Leisure Group. — LISA LOCKWOOD

ALL WRAPPED UP: Wrapped in Merino, the latest social media campaign from The Woolmark Co., wants to make the record books for the “world’s longest social scarf.” The campaign, which runs on Facebook and as a microsite, aims

to connect people in social media as they collaboratively design a giant virtual scarf. Each participant creates their own section of the scarf, adding their photo and customizing the scarf design, before sharing it with their friends through Facebook, Pinterest and Twitter. At the end of the campaign, the scarf will be submitted to

RecordSetter for inclusion in its list of world records.

Rob Langtry, Woolmark Co.’s chief strategy and marketing officer, said, “The campaign aims to give users a fun, memorable experience” with merino wool and give them the opportunity to design and customize their own personal scarf. The campaign comes as Woolmark Co.’s social media community, We Love Wool, reaches the 100,000-follower milestone. — ARTHUR FRIEDMAN

11WWD WEDNESDAY, MAY 30, 2012

{Continued from page 9}

FASHION SCOOPS THINKING PINK, AGAIN: The Duchess of Cambridge notched another new experience on Tuesday, attending her first summer garden party, hosted annually by the Queen. Displaying her usual thriftiness, she recycled the blush pink Emilia Wickstead dress she first wore for a Jubilee luncheon for Commonwealth monarchs at Windsor Castle two weeks ago. Armed with a matching Jane Corbett hat and her trusty L.K. Bennett nude platforms, Kate joined Queen Elizabeth II and her in-laws, the Prince of Wales and the Duchess of Cornwall, for afternoon tea with 8,000 guests at Buckingham Palace.

Under sunny skies, Kate appeared relaxed as she talked to guests who are invited as a thank you for public service. Also present were the Earl and Countess of Wessex and Princess Anne, the Princess Royal. Prince William was at his home in Anglesey, Wales, on duty as a Royal Air Force search and rescue pilot.

Buckingham Palace also revealed Tuesday that the young prince has been awarded one of the highest orders of chivalry, the Order of the Thistle, to mark his 30th birthday on June 21. — CATHERINE TIPPLE

ECO WALK: Gucci has launched a line of environmentally friendly shoes. Designed by Gucci creative director Frida Giannini, the Sustainable Soles footwear line includes two styles, one for men and one for women, both made with biodegradable plastic.

Available in a range of polished tones, including blush, taupe and black, Marola Green are ballerinas featuring cutout details and the company’s signature GG motif, while California Green men’s sneakers, sold in both a low- and high-top version, shows bio-rubber soles, the upper in vegetable-tanned calfskin and bio strings. The sneakers also have tongues featuring the Gucci logo printed in green on a recycled polyester label.

The Sustainable Soles line, which is part of the pre-fall 2012 collection, will hit Gucci’s e-commerce and its flagships worldwide at the end of June. — ALESSANDRA TURRA

HOLA, MIGUEL: Michael Kors brought his uncluttered American style to Spain Thursday night, inaugurating the company’s first freestanding location in the country on Madrid’s Calle Serrano. Luxury neighbors include Prada, Yves Saint Laurent and Loewe Men. “Madrid is a wonderful city with beautiful women and great energy,” Kors said during a cocktail at the new store.

Guests included photographer Mario Testino, who said his foundation-gallery in Lima, Peru, is scheduled to open on July 12; dapper man-about-town Luis Medina; María Zurita, niece of Spain’s King Juan Carlos, and TV celebrity Ana García-Siñeriz.

The 6,450-square-foot Madrid unit is Kors’ 17th in Europe. According to industry sources, Kors is negotiating a locale on Barcelona’s well-trafficked Paseo de Gracia. Company officials declined comment. — BARBARA BARKER

OCEANS 11: As part of the celebration of World Oceans Day, Susan Rockefeller will premiere her most recent documentary, “Mission of Mermaids,” Tuesday at New York’s Museum of Modern Art. The event is sponsored by Susan and David Rockefeller, along with Swiss watchmaker Girard-Perregaux. To commemorate the event, the upscale brand will launch a limited-edition timepiece called the Seahawk 1000 “Big Blue.” Retailing for $10,900, the watch includes a steel case and blue rubber strap with a matching dial that features a world map.

“Time is truly the only limited and precious resource that we have

in this world,” Susan Rockefeller said. “The message that Girard-Perregaux, David and I are sharing is that by giving our oceans time to rest and replenish with simple acts of thoughtfulness, they can continue to provide a bounty of necessities for human life.”

In addition to her 15-minute film, Rockefeller will fete the launch of her ocean-inspired jewelry collection, which is available at susanrockefeller.com. A portion of the proceeds will benefit Oceana, an organization that focuses on ocean conservation and protecting marine ecosystems and endangered species. — ALEXANDRA STEIGRAD

GEN GLOBAL: GenArt just extended its reach by launching a global division to foster creative talent in emerging markets — starting with Kenya earlier this month. GenArt chief executive officer Marc Lotenberg and its global director Martine Bury; Alternative Apparel design director Lissa Zwahlen; actresses Emmanuelle Chriqui and Noa Tishby, and entrepreneur Eric Crown trekked to Nairobi to help present the work of seven African designers. Two of the designers will also be able to showcase their work at GenArt’s Fresh Fashion show in New York during fashion week in September, and the initiative, which GenArt plans to bring to regions like China and Brazil, comes with a charitable element.

Alternative Apparel, which partnered with GenArt Global, donated clothing to Kenya’s Cura Orphanage. — MARC KARIMZADEH

BOWERY BENEFIT: “I’m very fond of my cohosts, who just so happen to be a bunch of my closest friends,” said Lily Rabe at the third-annual Lincoln Center Institute Junior Spring Benefit at the Bowery Hotel in New York on Wednesday night in support of arts education in public schools. She was referring to fellow cochairs Zoe Kazan and

Grace and Mamie Gummer. All were decked in head-to-toe Diane von Furstenberg — the event’s sponsor — to colorful, print-heavy effect. Carey Mulligan also cochaired, though she couldn’t make the party. Rightor Doyle proved a ribald stand-in.

“For those of you who haven’t slept with me, my name is Rightor Doyle; For those of you who have, I’m sorry,” the actor said to the crowd during the dinner’s first course. “You guys are all like, ‘Who?’ I’m here for Carey Mulligan. Well, she’s not here. So this is the best you got….Are we getting off on the wrong foot? I wear condoms.”

Kazan, who attended a progressive elementary school, was a bit more on message when she spoke to WWD.

“There’s so much science that stands behind [integrative learning] that there wasn’t in the Eighties and Nineties when I was in school,” the actress said. “They know so much more about why this works now. And there’s just no excuse.” — KRISTI GARCED

ANTIBULLY BANDWAGON: Rachel Roy has designed two T-shirts that are being

auctioned off to support “Bully,” The Weinstein Co. film playing in theaters. Bidding began Friday at $100 on charityfolks.com/Bully, with proceeds going to Facing History and Ourselves, a nonprofit organization that provides bullying

prevention training for educators and administrators.

“As a designer, I have the luxury of being able to create a product that lets people express themselves,” said Roy. “These Ts do exactly that. They get the message out loud and clear that bullying is a critical issue that needs as much attention as possible.”

Others who have helped get the film’s message out include

Justin Bieber, Ellen DeGeneres, Meryl Streep and Tommy Hilfiger.

— LISA LOCKWOOD

The fall Tommy Golf billboard that will go up next week.

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Mario Testino, Michael Kors and Luis Medina.

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WWD.COMWWD Wednesday, may 30, 201212

slow down,” Karen Katz, presi-dent and chief executive of-ficer of Neiman Marcus, told WWD. “We did better earlier in the quarter than later.”

In a problem not unique to Neiman’s, Katz said, “Fine ap-parel is particularly challeng-ing right now. For us, this was really the first quarter where we experienced a change. It’s not a price issue. There are lifestyle changes. Customers have been very discerning. They want something very unique, very fashionable, something lasting for her wardrobe.” Designer la-bels that read a bit more casual are doing well, she added. “We have to rethink how we edit the designer collections.”

Still, optimism emanated from Neiman’s conference call with analysts and from inter-views with executives, who out-lined growth initiatives. Among the plans:n Rebranding all of the re-tailer’s contemporary depart-ments as Cusp shops-in-shop. Cusp, a six-year-old division of Neiman’s, has six freestanding stores and cusp.com.n Remodeling the stores on Michigan Avenue in Chicago and in Bal Harbour Shops in Bal Harbour, Fla.n Expanding shoe departments.n Outfitting all 4,000 associ-ates at the full-line stores with smartphones to better serve customers.n Launching online sales in China by the end of the year.

In addition, management is being built up. In April, Joshua Schulman, who ran Jimmy Choo, became president of Bergdorf Goodman, filling a post vacant for two years. Also, Michael R. Kingston was named senior vice president and chief information officer. Lindy Rawlinson was named man-aging director of China, and Nathan Johnson became divi-sional merchandise manager for the venture. Both came from within Neiman’s ranks. A third insider is expected to be named chief operating officer in China. Additional hires will occur in China, and some Neiman’s buy-ers at the Dallas headquarters will be involved in the overseas buying and merchandising. Neiman’s in March invested $28 million in the Chinese e-commerce site Glamour Sales,

which will provide warehous-ing, fulfillment and technology so Neiman’s can launch a full-price e-commerce site in China.

Contemporary sportswear is another opportunity, particularly as the designer business drags. “The contemporary market re-sponds a lot quicker to trends. The lead times are not as long. Customers are migrating there. There is just better design in contemporary,” Katz observed.

As the contemporary de-partments at the 42 Neiman Marcus stores are renamed Cusp, they will be remade with a wider product range, updat-ed fixtures and mannequins, intensified color and a hipper, younger attitude “As we look at these [Cusp] shop-in-shops, our goal is to bring in more as-pirational customers into that area, and to make the shopping experience more transgen-erational so there is a mother-daughter atmosphere,” Katz said in a conference call.

“Our stores are very luxuri-ous and they can be at times a little intimidating. So we want to create an area that is very high energy, feels less in-timidating and is modern and fun,” Jim Gold, president of specialty retail for the Neiman Marcus Group, told WWD. “It shows another side of Neiman Marcus. We have never brand-ed the contemporary area be-fore. We just simply called it contemporary. This is a very different approach. We are creating a subbrand of Neiman Marcus — an extremely large shop-in-shop if you will.”

So far, six Neiman’s stores have converted contemporary departments to Cusp; by mid-June, 20 will have Cusp, and by November, the remaining 22 NM stores will also have Cusp. The average Cusp depart-ment will be 8,000 square feet, which means that space will be increased on contemporary floors in some locations by as much as 20 to 25 percent.

“As each store gets con-verted to Cusp, we are layering in jewelry, accessories and a small offering of shoes,” Gold said, citing Sam Edelman and Pour la Victoire in shoes, and Rebecca Minkoff, Be & D, Chris Kon and Love Moschino in handbags. In apparel, Alice + Olivia, Helmut Lang, DVF, Rag & Bone, A.L.C., Vince, Theory,

Alexander Wang and Phillip Lim are among the key vendors.

Neiman’s will decide wheth-er or not to open additional freestanding Cusp boutiques based on the performance of the new in-store Cusps and how they impact the existing freestanding Cusp units.

From a merchandising stand-point, “We are differentiating by introducing accessories, in-creasing the percentage of ex-clusive items within collections, and by how we edit the collec-tions,” Gold said. “We tend to be more fashion forward. We tend to embrace color. Our cli-ents are very active socially and want great clothes to wear to the hottest restaurants. On av-erage, we are more expensive than Bloomingdale’s.”

He also said Neiman’s is putting greater emphasis on key items and “lifestyling.” For example, tops for date nights will be spotlighted in its own area as well as within collec-tions, whereas in the past, it was just the latter. Gold also said Neiman’s is “retooling” its denim presentation, and creat-ing “On the Go” areas featuring active casual clothes for yoga or just hanging out, with such lines as Stella McCartney and Splits 59. “Women today are wearing lots of active clothes,” Gold said. “They don’t sim-ply want basics or technical clothes. They want clothes with a little more fashion but still casual and active in spirit.”

Gold said the Cusp con-versions bring “lots of visual energy, much more color, up-dated fixtures, mannequins and music, and a more relaxed dress code for associates who can now wear jeans on the Cusp floor. “There’s a very different sensibility. Cusp feels younger and more modern. It is a very healthy business. Definitely, it is the most highly trafficked” area in the store. “Many of the clothes have a more contempo-rary fit, so certain classifications not every woman can wear. The fit tends to be more of an issue with bottoms. And dresses tend to be a little bit shorter. But there are still tons of sweaters and novelty tops. There are el-ements every woman loves. If maxidresses are a trend, every-one buys them. And if you are in good shape, regardless of your age, it all works for you.”

Neiman Marcus Profits Surge

“It is very important for the company internally to see that things are happening gently and without drama. There is no bru-tal, sudden change,” said deputy ceo Patrick Albaladejo.

The importance of family unity has never been greater, as Hermès — founded in 1837 as a saddle-maker — tightens ranks against a potential as-sault by luxury conglomerate LVMH Moët Hennessy Louis Vuitton, which owns 22.3 percent of Hermès’ capital.

“Our policy will remain unchanged,” said Dumas, referring to the family’s hostile stance toward LVMH and its chairman and ceo, Bernard Arnault.

The future Hermès ceo is the son of the late Michel Dumas, former deputy ceo of the luxury house, and the nephew of the late Jean-Louis Dumas, the charismatic for-mer ceo of Hermès. A graduate of Sciences Po university in Paris and Harvard, Axel Dumas began his ca-reer at banking group Paribas before joining the family firm.

Dumas headed sev-eral divisions, includ-ing the all-important leather goods depart-ment, before being named chief operating officer in 2011. He is one of seven members of the executive board of Hermès, alongside his cous-ins, creative director Pierre-Alexis Dumas and deputy man-aging director Guillaume de Seynes, the latter of whom had also been touted as a potential candidate for the ceo post.

Thomas, who was the first non-family member to head Hermès, said the board of Emile Hermès had considered candi-dates from both within and out-side the family, gradually form-ing a consensus around Dumas.

“There was a period of con-sideration, but the support was unanimous,” he said after the annual meeting. “As a mem-ber of the management board, Guillaume de Seynes took part in this decision.”

Thomas — who will turn 65 in two weeks — touted Axel Dumas as a worthy successor to Jean-Louis Dumas, who died in 2010 at the age of 72 after helm-ing Hermès for almost three de-cades, steering it through a pe-riod of rapid growth and global expansion.

“What characterizes him is a good balance between his ability to envision, develop and improve product, and his talents as a busi-nessman,” said Thomas. “In a house like ours, it is not enough to use just one side of the brain. It’s better to use both sides.”

Thomas said he would re-main in his post until at least the end of 2013, but added that the transition period would not drag on indefinitely. “It is not a question of 10 years, it is a ques-tion of months,” he said.

The company took sev-

eral additional steps Tuesday to strengthen its barricades against a creeping takeover.

Shareholders approved the naming of Nicolas Puech, the brother of Bertrand Puech and the single largest family share-holder, as the 11th member of the supervisory board.

Nicolas Puech, who owns 5.8 percent of the capital, does not plan to add his shares to H51, the family holding company

which groups 50.15 percent of the Hermès share capital. But his arrival on the supervisory board is a concrete symbol of his allegiance to the Hermès clan, made up of the Dumas, Puech and Guerrand families.

Thomas sought to play down the significance of the move, which follows media reports last year suggesting a family rift, after Nicolas Puech told a French newspaper he thought a family holding group was not a good idea.

“He has been placed at the center of the story since LVMH acquired its stake, but the event should not be exaggerated,” Thomas said.

Shareholders also gave the green light to a change in stat-utes requiring holders of more than 0.5 percent of shares to reg-ister them to their name.

Thomas said that after a re-cord 2011, the outlook for 2012 remained positive — despite fi-nancial volatility linked to the European debt crisis and pro-duction bottlenecks that have curbed sales of Hermès hand-bags and silk scarves.

The executive is expected to remain involved in the running of Hermès even after he hands power over to Dumas.

“There is no precise plan regarding how long Patrick Thomas will stay before handing over completely, but even when he does, that does not mean he will disappear from one day to the next. The transition will be extremely harmonious and pro-gressive,” Albaladejo said.

The Next Generation Takes Reins at Hermès

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Axel Dumas

By JOELLE DIDERICH

PARIS — Hermès International said Tuesday it was handing over the reins of the company to the sixth generation of de-scendants of founder Thierry Hermès but, in keeping with its 2012 theme, the French luxury house has given itself the gift of time to ensure a smooth hand over.

Hermès chief executive of-ficer Patrick Thomas told the company’s annual general meet-ing that Hermès chief operating officer Axel Dumas, 41, would be named joint ceo in June 2013 for an unspecified period of time before taking over the role com-pletely.

“I am certain that Axel has all the requisite talents to head the company,” Thomas told shareholders gathered at the Palais des Congrès in western Paris.

Meanwhile, Bertrand Puech, 76, the executive chairman of Emile Hermès Sarl — which represents the family share-holders — said he would step down in favor of his nephew Henri-Louis Bauer, 46, effective July 1.

“The mandate of executive chairman of Emile Hermès, which was handed to me five years ago, has been for me es-sentially a mandate of trans-mission from the fifth to the sixth generation. It is therefore time for me now to step aside,” Puech said.

Both decisions were ap-proved last Thursday at a meeting of the board of Emile Hermès, but were the fruit of a long-term strategy, senior Hermès officials said on the sidelines of the meeting, where a giant screen displayed images from the brand’s 2012 campaign, carrying the tag line “The Gift of Time.”

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Neiman Marcus will rebrand all of the retailer’s contemporary

departments as Cusp shops-in-shop.

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