THE LEGEND OF THE TUX

PLUS:Neema Clothing winding down branded business. Page MW8

OUT OF THE BLUE

Weak Economy Impacts Men’s Denim MarketBrands push colored denim, fabric innovation to help spur spring sales.

October 6, 2011

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by DAVID LIPKE

MEN’S DENIM SALES have shrunk like a pair of 501’s in the wash this year, as the gloomy economy, high unemploy-ment and a bearish stock market deflat-ed consumer spending on jeans.

Total men’s jeans sales declined 2 percent for the 12 months ended in August to $5.17 billion, according to The NPD Group figures. Unit sales decreased 3 percent to 218.6 million, with the aver-age price per pair bumped up less than 1 percent to $23.64 — as companies inch up price tags due to higher cotton and production costs.

The premium market has taken the biggest hit in sales, with men’s jeans priced over $50 contracting 11 percent in sales to $624 million.

“My mind is on the economy every sin-gle day. But rather than complain about the economy, we need to focus on what we can do better and how to make life for our customers better,” said Cristiano Quieti, chief executive officer at Diesel USA. “But the economy is what it is. We have to give our customers a reason to buy. If shoppers have limited money, you have to create something that gives them an emotional experience rather than just another five-pocket jean.”

Among Diesel’s initiatives for spring is a new capsule line of premium designs under the Our Glory moniker that taps into the vintage heritage of the brand, with jeans priced at $300 to $350.

While Diesel is emphasizing super-premium product for a specialized audi-ence, the bulk of American shoppers are seeking out lower prices. Overall men’s denim sales have fallen at both depart-ment stores and mass merchants, as bud-get-minded shoppers have pumped up sales at off-price retailers by 14 percent and at factory outlets by 45 percent over the past year. (See chart.)

Fall sales have not been helped by the unseasonably warm weather in both the U.S. and Europe, pointed out Jeff Rudes, ceo of J Brand. “Changes in weather re-ally help kick off the fall shopping season, and that hasn’t happened,” he noted. “It shrinks the fall selling season.”

However, J Brand sales are up this year and the company is counting on colored denim, skinny fits and soft and lightweight fabrications to spur sales fur-ther come spring. “We know it’s a tough environment. But we know people still

{Continued on page MW2}

Band of Outsiders’ leather jacket, Gucci’s cotton shirt and Ralph Lauren Black Label Denim’s cotton denim jeans. Western Spirit bolo tie; Superdry belt.Jean Paul Gaultier’s leather jacket, Calvin Klein’s cotton T-shirt and Gilded Age’s cotton denim jeans. Superdry belt.Bottega Veneta’s leather jacket, Hanes’ cotton T-shirt and Cheap Monday’s cotton denim jeans.

The Fab FiftiesWhile overall denim sales are depressed due

to the economy, jeans makers are taking inspiration from an idealized vision of the

postwar boom period and that era’s golden age of denim. For more, see pages MW4 and MW6.

Exhibit and gala honor 150 years of the little black jacket. Page MW7

want to buy fashion, and people always need a new a pair of jeans to look great and feel sexy,” said Rudes.

Trendy labels with the right product can clearly buck the overall downward trend. At AG Adriano Goldschmied, men’s denim sales are up over 40 percent this year, according to design di-rector Sam Ku. Sales have been driven by slim-straight fi ts and denim blend fabrics with lyocell that add softness and drape to jeans. Jeans with an element of stretch have grown to over half of AG Adriano Goldschmied men’s business.

South Gate, Calif.-based Koos Mfg., which owns AG Adriano Goldschmied and manufactures the jeans in its own fa-cility, recently placed an order for 22 laser machines. Each machine costs around $200,000 and uses lasers to create wash and whisker effects on jeans, without the use of water or chemicals. “Lasers are very effi cient and eco-friendly. We use them to save time and money on dry processes like hand-scraping and sandpapering,”

explained Ku. “It’s a big investment up front, but in the long run it will save money on labor and materials. Plus, it’s better for the environment.”

G-Star is similarly upbeat on the coming year and plans to open six new freestanding stores in the U.S., via franchises, in addition to fi ve new Q-Stores, which are specialty stores that focus the majority of real estate on G-Star product and installations.

“The issues remain the same, with the key issues being quality, price and innovation,” said Stuart Millar, executive vice president of G-Star North America, which does about 65 percent of its business in men’s. “The consumer wants

good quality for a good price, and we cater toward this with the price point of $140 to $190.”

At Seven For All Mankind, men’s sales are up double digits in the brand’s own stores, said president Barry Miguel. The company, a unit of VF Corp., currently op-erates 29 full-price stores and 11 outlets in

the U.S. Another outlet unit opens on the Jersey Shore on Friday, and seven

additional stores are planned in the next year. “Our own stores are doing very well and our department store business is doing well. The specialty chan-nel has had a harder time as it’s been harder hit by the re-tail climate,” said Miguel.

The men’s segment has grown to about 40 percent of total Seven For All Mankind sales. For spring, colored denim in shades of brick, green, gold and an array of earth tones are key trends for the brand. “Our guy is really reacting to color,” said Miguel.

On Tuesday, Saks Fifth Avenue co-hosted a men’s denim forum at its New York fl agship with Fashion Group International and participants were san-

guine about the business, despite the overall market trend.

Tom Ott, senior vice president and general merchandise manager of men’s wear, said the premium denim business is strong at Saks and is expected to continue to outpace other categories.

Ott noted that dark, clean styles are trending up on the East Coast while West Coast customers are more drawn to distressed offer-ings. But in all cases, customers are seeking details about the jeans, asking why they cost what they cost — making fi t seminars, internal fash-ion shows and other educational pro-grams crucial for sales associates.

— WITH CONTRIBUTIONSFROM JEAN E. PALMIERI

Men’s WeekMW2 WWD THURSDAY, OCTOBER 6, 2011

Channel CheckMen’s Jeans Sales by Channel

12 MONTHS 12 MONTHS LOCATION ENDING 8/2011 ENDING 8/2010 CHANGE

Department Stores $745 million $778.9 million -4%

National Chains $1.09 billion $1.06 billion 3%

Mass Merchants $977.6 million $1.07 billion -8%

Specialty Stores $1.37 billion $1.39 billion -1%

Off-Price Retailers $439.6 million $384.4 million 14%

Factory Outlets $157.5 million $108.8 million 45%

Direct Mail/E-tail Pure Plays $140.9 million $227 million -38%

All Other $248.3 million $260.7 million -5%

$5.17 billionTotal men’s jeans sales for 12 months ending August 2011.

$5.27 billionTotal men’s jeans sales for 12 months ending August 2010.

-2%Change in sales.

SOURCE: THE NPD GROUP

Best SellersTop Five National/Designer Men’s Denim Brands

1. Levi’s

2. Wrangler

3. Lee

4. Levi Strauss Signature

5. Calvin Klein

“WE KNOW IT’S A TOUGH

ENVIRONMENT. BUT WE KNOW PEOPLE STILL WANT TO BUY

FASHION.”— Jeff Rudes, J Brand

{Continued from page MW1}

DENIM BRANDS FIGHT RETAIL BLUES

G-Star

Diesel

AG Adriano Goldschmied

Seven For All Mankind

Men’s WeekMW4 WWD THURSDAY, OCTOBER 6, 2011

GREASEIs theWORD

With the late Fifties aesthetic emerging as one of the leading trends in fashion, the “greaser” and “Teddy Boy” looks have become omnipresent. Denim is central to the theme, especially this season’s dark blue, white and raw fabrics and finishes. Watch out Danny Zuko. — Alex Badia

Photos by JAKOB AXELMAN

Dolce & Gabbana’s wool jacket, Moschino’s

checkered wool jacket, Burberry London’s cotton T-shirt and

J Brand’s cotton denim jeans. Costume

National shoes.Adriano Goldschmied’s

cotton denim jacket, Rag & Bone’s cotton

shirt and Neil Barrett’s wool pants.

FOR MORE LOOKS, SEE

WWD.com/menswear-news.

ROBERT GRAHAM FLAGSHIP STORE 1326 ABBOT KINNEY BLVD., VENICE, CALIFORNIA 90291

NEIMAN MARCUS, NORDSTROM, SAKS FIFTH AVENUE AND BETTER SPECIALTY STORES

ROBERTGR AHAM.US

AVAILABLE SPRING 2012

Men’s WeekMW6 WWD THURSDAY, OCTOBER 6, 2011

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Gucci’s wool jacket, Dries Van Noten’s

cotton shirt and NSF’s cotton denim

jeans. Western Spirit bolo tie; Superdry

belt; Costume National shoes.

Dolce & Gabbana’s wool jacket, Diesel’s cotton shirt and Nudie Jeans’ cotton denim jeans. Ray-Ban sunglasses; Costume National shoes.

Rag & Bone’s wool jacket, Mavi’s cotton shirt and Seven For All Mankind’s cotton denim jeans. Dolce & Gabbana tie; Superdry belt; Costume National shoes.Alexander McQueen’s wool jacket, Giorgio Armani’s cotton shirt and Citizens of Humanity’s cotton denim jeans. Western Spirit bolo tie; Lanvin belt.

Men’s Week MW7WWD THURSDAY, OCTOBER 6, 2011

Tipping a Hat to the Tuxedoby JEAN E. PALMIERI

PINPOINTING THE ORIGIN of the tuxedo in America has always been a bit of a mystery.

The prevailing story is that Griswold Lorillard, the 22-year-old son of tobacco magnate and Tuxedo Park, N.Y., founder Pierre Lorillard, cut the tails off his jacket when attending the inaugural Autumn Ball at the Tuxedo Club in Tuxedo Park in 1886, causing a scandal and spawning a new fash-ion trend.

It’s true that Lorillard and several friends at-tended the dinner party in bastardized tailcoats, said Chris Sonne, town historian for Tuxedo Park, but that’s not the whole story.

“The press picked it up and said they looked ridiculous,” he said. “A lot of people said it was the begin-ning of the dinner jacket but if you cut off the tails of a tailcoat, you’ve got a mess jacket that just goes to the waist. A tuxedo is a suit coat.”

The real story actually starts 150 years ago on London’s Savile Row, where bespoke tailor Henry Poole created a less formal ver-sion of the tailcoat for the Prince of Wales, the future King Edward VII. James Brown Potter, a Tuxedo Club member, attended a din-ner at the prince’s country estate, Sandringham, early in 1886. Potter asked the prince for some fashion advice and he was sent to Poole, where he was fitted with a short black jacket and tie. Potter liked the new look so much that he brought it back home to Tuxedo Park, and he and his friends wore the din-ner jackets to a bachelor’s dinner at Delmonico’s in New York City and then to nonformal dinners in Tuxedo Park. Asked why they were “out of uniform,” the group respond-ed that they were wearing the latest Tuxedo fashion and the name stuck.

This weekend, descendants of Henry Poole and James Potter will be back in Tuxedo Park to celebrate the 150th anniversary of that little black jacket.

Planned festivities include an exhibition by the London College of Fashion at the Tuxedo Historical Society Friday night, followed by the return of the Autumn Ball at the Tuxedo Club Saturday evening. The Autumn Ball, which has been dor-mant since 1971, is being sponsored by Giorgio Armani.

The exhibition will be on dis-play at the Tuxedo Historical Society through Nov. 4 and will showcase the winning designs from London College of Fashion students who were charged with reinventing the tuxedo for the 21st century.

“It started over a year ago when Steven Dell [program director for the college] got the idea to work with Henry Poole and second-year bespoke tailoring students to cel-ebrate 150 years of the tuxedo,” said Ben Whyman, curator of the

exhibit. And when they discovered that it was also the 125th anniversary of the Tuxedo Club’s Autumn Ball, “we decided to celebrate two great milestones,” said Roma Vaccaro, project manager.

Interestingly, the winning design, by Maria Thelin, is actually a women’s tuxedo and features an outside jacket that attaches to a waistcoat and a keyhole detail on the back.

The exhibition opened in London on Sept. 7 and then was shown at Harrods and the Burlington Arcade in that city before traveling to New York.

Vaccaro said plans call for it to be shown in Brazil next spring and the hope is that it will also

be exhibited in Japan and Paris.In addition to Thelin’s winning design, about

a dozen of the students’ works will be on display along with two behind-the-scenes films on the proj-ect, produced by Vaccaro. There are also a series of black-and-white photographs of various people — musicians, actors, playwrights, bankers and stu-dents — “who share a collective appreciation of the tuxedos,” Vaccaro said.

The Tuxedo Historical Society display also in-cludes some vintage formalwear pieces, including a Brooks Brothers tuxedo, an array of bow ties and a scarlet waistcoat.

The little black jacket celebrates its 150th anniversary with an exhibition and gala dinner in Tuxedo Park, N.Y.

The winning design.

The 150th anniversary logo.

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Men’s WeekMW8 WWD THURSDAY, OCTOBER 6, 2011

Man of THE WEEK CHRIS CHRISTIE: C

The New Jersey governor, who pulled his hat out of the ring Tuesday for a presidential run, does a good job finding a suit that covers his body. But he would look more powerful if he opted for a made-to-measure suit rather than one off the rack from his local Rochester Big & Tall store. But for his health and political future, now that he has decided not to run for president, maybe he should run to the gym.

The lack of upper-body definition makes the

shoulders slope down and projects an image

of weakness.

The right color combination. The

tie’s geometric pattern complements the outfit and brings attention to his face.

Too long and boxy. Subtle darts would help mitigate

the “tent e!ect.”

Sleeves are too long, putting more emphasis on

the oversize jacket.

He should opt for a heavy crease to narrow

the visual impact of the carrot-shaped pants.

Solid black color is the perfect choice for

the suit.

Neema Clothing Closing Its Branded Operationsby VICKI M. YOUNG

NEEMA CLOTHING LTD., which sold its private label assets to Haggar Clothing Co. in February, is now winding down its branded business.

According to market and finan-cial sources, certain of the com-pany’s inventory was sold to the Samsung Group, which is part of Cheil Industries of South Korea. Cheil began in 1954 as a textiles firm and expanded into men’s wear operations.

Neema holds the men’s wear licenses for the Kroon and Haspel brands, and owns the master li-cense for men’s wear for the Halston brand, which is owned by Hilco Consumer Credit.

James Ammeen, president and chief executive officer of Neema, could not be reached for comment Wednesday.

However, sources said Jeffrey Ammeen, James Ammeen’s son and the former executive vice pres-ident of Neema, has started a new “marketing-driven” company, Blue Lion, that will handle the sales and merchandising for Kroon, Haspel and Halston. Blue Lion is cur-rently searching for office space in Manhattan, one source said.

Market sources also said Samsung is financing the Blue Lion venture, and the South Korean company will also handle the back-office production end for

the licensed businesses who have entered into new licensing agree-ments with Blue Lion and subli-censes with Samsung.

Reached at her Baton Rouge, La., office, Laurie Haspel Aronson, president of the family-owned Haspel brand, said she was com-fortable with the new arrange-ment. “Jeffrey Ammeen is full of energy and excitement and we look forward to seeing what devel-opments are in store for his new company,” she said.

At Neema, Jeffrey Ammeen had been working with the family to re-vitalize the Haspel label and turn it into an American lifestyle brand with multiple categories of mer-chandise. Its most recent venture was the expansion into sportswear through a licensing agreement with Components by John McCoy, which will produce wovens in cot-ton and linen, pants, walk shorts, swimwear, knit shirts, T-shirts and sweaters to complement the tai-lored clothing. That merchandise is still scheduled to debut for spring.

The Halston men’s lines were relaunched a year ago, led by a luxury-level main collection of suits and sportswear and a second-ary line called Heritage, which is more fashion- and sportswear-driv-en at lower price points. Kroon’s claim to fame is its denim-friendly sport coats and casual suits.

— WITH CONTRIBUTIONS FROM JEAN E. PALMIERI