LEVI’S LAMENTS/2 ELDER-BEERMAN IN SALE DEAL/2Women’s Wear Daily • The Retailers’ Daily Newspaper • June 27, 2003 Vol. 185, No. 130 $2.00

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Purple HazeNEW YORK — Stella McCartney is stepping into the world of

perfumery with her first women’s fragrance, called Stella,

which will be launched globally on Sept. 13, her 32nd birthday.

The scent is being marketed by YSL Beauté, a division of Gucci

Group. Elsewhere under the umbrella of the parent brand,

Gucci is launching its latest men’s fragrance, conceived

by the group’s creative director, Tom Ford, working

with the company’s fragrance licensee, Wella.

For more, see stories on page 7.

WWDFRIDAYBeauty

By Pete BornNEW YORK — L’Oréal USA hasannounced a change in command ofits powerful $1.4 billion LuxuryProducts Division with theappointment of Edgar Huber as

president, succeeding Luc Nadeau,effective Sept. 1.

Nadeau has been named to whatJean-Paul Agon, president and chiefexecutive officer of L’Oréal USA,describes as “a new important

position” in the Montreal-basedL’Oréal Canada. In addition to beingappointed president of the CanadianLuxury Products Division, Nadeauhas been named to the newly created

L’Oréal Prestige Division Shifts Roles for Nadeau and Huber

See L’Oréal, Page 6

WWDStock Market Index for June 26Composite: 108.13

0.56

Vendors: 108.23

0.23

Textiles: 109.82

-1.29

Broadline Stores: 108.65

0.59

Softline Stores: 104.47

0.90

Index base of 100 iskeyed to closing prices

of Dec. 31, 2002.

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The Joffrey Ballet was misspelled on page 14, Thursday.

Correction

By David Moin

DAYTON, Ohio — It looks like awin-win situation for The Elder-Beerman Stores Corp. and itsshareholders.

On Thursday, the troubled re-gional department store chainsigned a definitive mergeragreement to be sold for about$180 million to Wright HoldingsInc., a company formed for theacquisition by the GoldnerHawn Johnson & Morrison Inc.private investment fund basedin Minneapolis.

Elder-Beerman’s senior man-agement, led by Byron “Bud”Bergren, president and chief ex-ecutive officer, and EdwardTomechko, executive vice presi-dent and chief financial officer,is staying in place and expectedto own at least 10 percent of thenew holding company. The an-nouncement confirmed a June13 WWD report that the retail-

er’s management was involvedin negotiating to buy the chain.

Shareholders will get $6 pereach common share, more thantwice the average selling price of$3 during the 30 days prior to May16, when the company disclosed itwas in exclusive negotiations tobe sold. The stock closed at $5.80,up 49 cents, or 9.2 percent, Thurs-day on the Nasdaq.

The deal includes $69 millionin equity, based on the $6 a shareprice times 11.5 million outstand-ing shares, and net debt inherit-ed by Wright of about $110 mil-lion. The value is over five timesEBITDA of $33.4 million in thepast 12 months — a good multiplefor a regional chain to command.

The deal is subject to ap-proval by holders of two-thirds ofthe common shares, Wright final-izing all the financing, and anyhigher offers that could come in,though Bergren said none hadbeen received. It beat out a $5.50

offer from EB Acquisition Ltd.,an Ohio-based real estate in-vestor and developer.

Shareholders will vote on themerger in mid-to-late September.Elder-Beerman’s independent di-rectors unanimously approvedthe merger and will recommend itto shareholders. All of the compa-ny’s 10 directors except Bergrenare independent.

The merger provides the com-pany with an infusion of capitalfor ongoing operations and expan-sion, and takes the company pri-vate, meaning Elder-Beermanwon’t have to deal with the report-ing and growth demands of WallStreet anymore. But the firm stillfaces a tough competitive land-scape, where the giant nationalchains have been taking marketshare from regional players.

However, Bergren upheld thelong-term viability of his store,stating, “We have been successful

The Wright Move for Elder-Beerman

By Scott Malone

NEW YORK — Levi Strauss &Co.’s on-again, off-again climbback to growth was both on andoff track in the second quarter.

The San Francisco-based com-pany reported that net sales wereup 0.7 percent for the quarterended May 25, after sliding in thefirst quarter. But executivespointed out that, factoring out theboost in sales overseas caused bythe sliding dollar, sales wouldhave been off 4.7 percent.

A soft retail environmentprompted company officials towarn that the company’s long-awaited sales turnaround wouldlikely not come until next year.

“Returning the company backto a growth pattern is absolutelycritical to our success,” said PhilMarineau, president and chiefexecutive officer. “But with totalsales down in the first half asthey were, on a constant-curren-cy basis, we can only expect to beflat in total [for the year]. Wemight do slightly better than that,but we are planning on being flaton a total-year basis.”

When Levi’s reported its first-quarter results, executives said

although they thought the firsthalf would be slow, they expect-ed the company to post salesgrowth of 2 to 5 percent for theyear, factoring out the effect ofcurrency fluctuations, as report-ed. The 6.4 percent drop in first-quarter sales had followed twoquarters of revenue growth inthe second half of 2002.

Currency fluctuations helpedthe company in the most recentquarter by making its pricesmore competitive in Europe andAsia. Levi’s reported net sales of$930 million, up from $923.5 mil-lion a year earlier. While thecompany remained in the red,the bottom-line picture im-proved, with a $13.4 million netloss compared with a $75.7 mil-lion net loss a year ago.

But company officials ac-knowledged that, factoring out aslew of one-time costs thatweighed down last year’s re-sults, operating income was off43 percent to $50.9 million.

The company’s weakest linkremained its Americas business,where sales slid 6 percent to$560.6 million. European salesrose 8.2 percent to $261.2 millionand Asian sales climbed 26.7percent to $108.2 million, de-spite the SARS outbreak inmany key markets.

Factoring out fluctuations inexchange rates, Americas saleswould have slid 5.5 percent,European business would be off10.3 percent and Asian saleswould have risen 17.2 percent.

Rocky Road to Growth for Levi’s

By Joanna Ramey

WASHINGTON — Nike Inc. expe-rienced a legal setback Thursdaythat could eventually signal anew era in corporate-speak whenthe U.S. Supreme Court dis-missed a case in which the ac-tivewear company sought free-speech protections for its defenseagainst sweatshop allegations.

The case was widely watchedfor its potential implications onconsumer product manufactur-ers, advertisers, public relationsand media firms, and their FirstAmendment rights.

A majority of justices on thecourt said they didn’t haveenough information about thefacts in the Nike case, whichnever made it to trial, and thusthey shouldn’t have agreed tohear the matter in the first place.

It now goes back to a Californiatrial court where in 1998 a judgesided with the world’s largestsneaker maker and dismissed thematter brought by San Franciscoactivist Marc Kasky.

At issue is whether Nike, indefending antiglobalization crit-ics, misrepresented working con-ditions at its Southeast Asiancontractors in press releases, let-ters to the editor and advertorialsand thus violated California’sstrict law regulating unfair com-petition and false advertising.

Nike has argued its defense ofits corporate practices should beprotected by the First Amend-ment and treated differentlyfrom commercial speech, likewhat is said about the nature ofits products in advertising.

The Supreme Court dismissedthe Nike case in a one-sentence

declaration. However, three ofthe six justices who agreed toturn back the case appeared tofind some merit in Nike’s freespeech protection claims.

“This case presents novel FirstAmendment questions becausethe speech at issue represents ablending of commercial speech,noncommercial speech and de-bate on an issue of public impor-tance,” wrote John Paul Stevens,with Justices David Souter andRuth Bader Ginsburg concurring.

The three justices who votedto proceed with the case, SandraDay O’Connor, Anthony M. Ken-nedy and Stephen Breyer, wrotethere was enough information tobase a decision and expressedsome urgency to do so. Writingfor the minority, Breyer said hecould “find no good reason for

Nike Suffers Supreme Court SetbackGENERAL

Luc Nadeau, president of L’Oréal USA’s luxury products division, has beenappointed to a new position at L’Oréal Canada.

Stella McCartney discusses her first fragrance, which bows Sept. 13 and isestimated to pull in $12 million to $20 million at retail in its first year.

The U.S. Supreme Court dismissed a case in which Nike sought free-speech protections for its defense against sweatshop allegations.

Cosmoprof’s reputation as the world’s biggest and best-attended beautytrade show is drawing attendees for its U.S. debut next month in Las Vegas.

Elder-Beerman Stores Corp. signed a definitive merger agreement to besold for about $180 million to Wright Holdings Inc.

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WWDFRIDAYBeauty

● WATCH OUT: In another sign of a difficult watch market, Swissmaker Ebel said it would lay off 24 of its 269 employees, most ofthem production workers. The firm, owned by luxury giantLVMH Moët Hennessy Louis Vuitton, cited tough times in thefirst half due to the impact of the Iraqi conflict and SARS. Thismonth, Compagnie Financière Richemont AG said it wouldslash 200 positions — or 5 percent — of the group’s Swiss-basedwatch-manufacturing workforce.

● LANA LAUNCH: Herb Frichner has joined Lana FashionwearInc. as a partner in a new better/bridge sport outerwear division.The division has yet to be named. First deliveries are set fornext spring. Frichner was president and owner of Panache Inc.,a better outerwear firm. Lana, a private label manufacturer sup-plying such retailers as Saks Inc., Lands’ End, Orvis, New York& Co. and Limited Brands, also operates the Lana WinerInternational and Kazu Apparel Group divisions. It has factoriesin Hong Kong, China, Guatemala and Kenya, and design, textileand product development offices in New York.

● CARIBBEAN JOE’S NEW WAVE: Caribbean Joe, the moderatelifestyle brand, is expanding into men’s swimwear and chil-dren’s apparel. Apparel Holdings Group, which owns theCaribbean Joe brand, has licensed the men’s swimwear to DDKInternational and the children’s line to Mamiye Bros. Under theterms of the new licenses, both new lines will be available in de-partment and specialty stores in the U.S. beginning in spring2004. Ken Sitomer, principal of Apparel Holdings, said: “Withimmediate plans to sign several other major licenses, ApparelHoldings Group will continue toward its goal of buildingCaribbean Joe into a complete lifestyle brand.”

In Brief

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Levi’s executives said its exclusive

line for Wal-Mart is the company’s

best prospect for second-half growth.

Continued on opposite page

Continued on page 12

Continued on opposite page

SUZY HAS THE DAY OFF

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By Miles Socha

PARIS — Peggy Moffitt, the tire-less keeper of Rudi Gernreich’slegacy, has found an appropriate-ly avant-garde partner to relaunchhis designs: Rei Kawakubo.

This September will see theretail debut of a Peggy Mof-fitt/Comme des Garçons label,with Kawakubo reinterpretingand producing anew a collectionbased on one of his most notori-ous styles: the topless swimsuit.

This confirms a report inthese columns June 3 that Mof-fitt was near a deal, and con-cludes her 18-year quest to res-urrect Gernreich’s designs.Moffitt has long held a trade-mark on Gernreich’s name, whodied in 1985 at the age of 63.

“I just signed the contractand faxed it over five minutesago,” Moffitt said Thursdaymorning from the Beverly Hillshome she shares with photogra-pher William Claxton, who isalso named in the deal. “I’ve al-ways respected Rei’s aesthetic.Like Rudi, she’s an artist.”

Certainly Kawakubo has beena fan for ages. “His invention ofthe topless swimsuit in the earlySixties was incredibly avant-garde and so beautiful,” she saidin a statement. “I have alwayshad the greatest respect for thedesigns of Rudi Gernreich.”

Under the initial two-yeardeal, which is renewable, Kawa-kubo will have access to Gern-reich’s vast archive under Moffittand Claxton’s keep and, withMoffitt, will create a series ofminicollections. Two are plannedto be in stores next spring.

Milan retailer Carla Sozzani isthe third party in the venture.Her store, 10 Corso Como, willdistribute the Gernreich-inspiredcollection via a company calledDeici Comme Ltd., a joint ven-ture between the Japanese de-signer firm and her fashion-lifestyle emporium.

Sozzani called Gernreich “thefather of unisex, modern fashionand street style, among many oth-ers. He brought fun and life tofashion. Making an exhibition

and publishing a book on him, Irealized I wished his spirit to con-tinue. It is also about breaking therules. Who better than Rei?”

Sozzani hosted a show ofGernreich’s fashions in herstore-cum-gallery in 1998. It wasat that time that Moffitt — whodetests flying — went to Europeto meet with manufacturersabout reviving Gernreich designsand first met Sozzani. “Last yearI get a letter from Carla asking ifI’m still in the mood,” Moffitt re-called. “She tells me Rei is inter-ested. Well, of course I said yes.”

Yet, it took another few monthsuntil Sozzani contacted Moffittagain. Three days after returningfrom opening an exhibition show-casing the Gernreich-Moffitt-Claxton collaboration at thePhoenix Art Museum in May, thetwo surviving partners met withComme des Garçons representa-tives in their home, providingthem with looks, ideas and storiesabout the designer. “We just fell inlove with each other,” said Moffitt.

Adrian Joffe, managing direc-tor of Comme des Garçons inParis, said the first collection ofabout 20 designs will bow this fallat its boutiques in New York,Paris, Tokyo, Kyoto and Osaka aswell as 10 Corso Como. It willalso be offered to 10 to 15 special-ty stores, with by-appointmentsales commencing next week.

Joffe said he has not yet pricedthe line, nor completed his budg-ets and could not provide salesprojections, but said: “I’m prettyconfident we can get 15 stores forSeptember, and we are open toincreasing distribution later.”

As an introduction, Commedes Garçons will begin selling aT-shirt bearing Moffitt’s imagefor $120 in July.

As for Moffitt, who will workwith her new partners to ensureher old friend’s spirit continues,the team couldn’t be better. “Idon’t have any feeling that Rudi orI will be exploited. They definitelymean business. But it has nothingof the ‘quick buck’ feel to it.”

— With contributions fromRose Apodaca Jones,

Los Angeles

Kawakubo, Moffitt TeamFor Relaunch of Gernreich

Continued from opposite pagePrivately owned Levi’s re-

leases its financial results be-cause of public bonds.

On a conference call withdebt analysts, chief financial offi-cer Bill Chiasson noted that thecompany’s advertising expenseswere up 24.2 percent in the quar-ter to $87 million. He said that’sbecause the company pulled $15million of its European ad budg-et from the second half of theyear into the quarter to pay for acampaign introducing Type Onejeans, a dark denim style withexaggerated details that Levi’shas made a major focus of itsmarketing this year. Levi’s allo-cated its entire spring ad budgetto the new style.

That move didn’t pay off aswell as the company had hoped,executives acknowledged.

“The style that we put outthere was fairly edgy in terms offabric and color, and has notdone well,” said Marineau,adding that the product “wasnever planned to be a huge per-centage of our business.”

In spring 2002, when the firmwas preparing for the rollout ofType One products, Levi’s offi-cials said the style would be thefirst in a line of design innova-tions. Each major innovation wasintended to potentially represent10 percent of the brand’s rev-enues within 18 months.

Marineau said in a phone in-terview he still believes Type

One jeans have the potential torepresent “a high-single-digit”percentage of the brand’s sales inAsia and Europe, but admitted itwouldn’t be that much in the U.S.

Coming a couple of yearsafter Engineered Jeans, TypeOne marks the second in a seriesof major design innovationsLevi’s introduced that have per-formed fairly well abroad, buthave not caught on in the U.S.That prompted the question ofwhether American shoppers arelooking to Levi’s for product in-novations of this magnitude.

“Those would be generaliza-tions that we are not necessarilywilling to make,” said Marineau,who still believes Levi’s coulduse major design innovations toattract consumer attention.

“We’ve used Engineered Jeansand then Type One as a symbol ofit’s not just your basic 501’s or550’s anymore,” he said. “Done ina way that reinforces the notionof quality, value and style withinthe communications, that strate-gy will work.”

Marineau made headlinesearlier this year when he saidthe Super Bowl ad the companyused to introduce Type Onejeans, which involved a stam-pede of bison in a postmodernsetting, had been unsatisfactory.

Also on Thursday, Levi’s un-veiled its fall TV ads for TypeOne jeans, to which Marineaugave a thumbs-up. The campaign,by Levi’s agency, Bartle Bogle

Hegarty, includes two spots, amen’s ad featuring a fellow tryingto tame an escaped car, and awomen’s spot with a horse beingtamed by a trainer. The car ad isdue to premiere in movie the-aters today and then appear onTV, with the horse ad followingup on July 14.

The ads will feature a revisedversion of the Type One jeans,the same silhouette, but with amore traditional stonewasheddenim fabric, rather than tintedand treated fabrics used in thelaunch. The ceo said the compa-ny had heavily tested the ads to“make sure we weren’t kiddingourselves” by producing spotsconsumers wouldn’t like.

The company forecast salesgrowth in the second half, butnot enough to significantly offsetthe 8 percent constant-currencydecline in the first half.

Marineau acknowledged theupcoming launch of Levi StraussSignature product at Wal-MartStores Inc. would be the primaryengine of growth for the rest ofthe year.

“It’s not 100 percent Wal-Mart,there are some parts of the com-pany that will grow in addition tothat,” he said. “But the vast ma-jority of that would be LeviStrauss Signature.”

For the half, Levi’s reported a$37.9 million net loss, deeperthan the $33.2 million loss a yearago. Sales were off 2.9 percent to$1.81 billion.

Levi’s Growth Pinned on Wal-Mart

By Kristi Ellis

WASHINGTON — The Bush ad-ministration reaffirmed its com-mitment to expand the AfricaGrowth & Opportunity Act Thurs-day, but warned sub-SaharanAfrican nations that the extend-ed trade breaks could be com-promised if they fail to cooper-ate in the current round of glob-al trade talks.

From the beginning, the ad-ministration has said it will usebilateral and regional trade pactsas leverage in the World TradeOrganization talks among 146 na-tions, and U.S. Trade Representa-tive Robert Zoellick’s volley to theAfrican nations served as one ofthe starkest examples.

The leaders of 15 African na-tions are seeking investment op-portunities and agitating for anexpansion of trade breaks as theexpiration nears for a crucialAGOA provision that allows thepoorest nations of sub-SaharanAfrica to use fabrics from Asiaand elsewhere in the world.

Zoellick, addressing a groupof about 400 African heads ofstate; prime ministers; trade andcommerce ministers, and Africanand U.S. businessmen at theU.S.-Africa Business Summitheld at the Washington HiltonHotel, said: “Some African coun-tries have been saying they don’twant other countries to reducetheir tariffs. That’s going to be aproblem. If that position pre-vents U.S. businesses from re-ducing barriers in other marketsaround the world, I have to tellyou it will undermine support forpreferences.”

The U.S. has submitted a pro-posal in the WTO round of glob-al talks calling for the elimina-tion of tariffs on all industrial

goods, including apparel andtextiles, by 2015.

“You want to get an AGOAIII?” asked Zoellick rhetorically.“Well it’s going to be a lot harderto get an AGOA III if someAfrican countries are seen as try-ing to undermine U.S. companiesto open markets in other coun-tries around the world.”

Conversely, Sir AneroodJugnauth, prime minister ofMauritius, said, “Africa is seri-ously concerned about [the push]to open up all markets irrespec-tive of size and capacity to com-pete in the global market.” Henoted that U.S. and Europeancompanies have had business re-lationships for a long time andclaimed they benefit from theirown high tariffs and “strong pro-tectionist provisions.” However,the most imminent threat is theelimination of apparel and tex-tile quotas in 2005, he said.

“The hope of sustained employ-ment for hundreds of thousandsof Africans will be [lost] on Jan.1, 2005,” Jugnauth said. “My con-cern is that all benefits of AGOAwill be [tossed] on the rocks.”

Jugnauth acknowledged thatAGOA has provided access to theU.S. market and employment forthousands of Africans, but heclaimed those gains have beencompromised by the trade pacts,special treatment and prefer-ences the U.S. extends to othercountries.

“We discovered preferencesfor everyone are preferences forno one,” he said.

President Bush addressed thesummit, reaffirming his commit-ment to extend the entire AGOApackage beyond the 2008 expira-tion date and touched on a broadpolicy of support for Africa, in-cluding aid to combat terrorism

and a proposed $15 billion pro-gram to fight HIV/AIDS.

“We must extend AGOA be-yond 2008 to give businesses theconfidence to make long-terminvestments in Africa,” he said,urging African nations to lowertrade barriers against each oth-ers’ products. “Just as Americacan do more to open its markets,so can the nations of Africa.”

Overall imports to the U.S.under AGOA in 2002 rose 10 per-cent to $9 billion. Textile and ap-parel imports from the sub-Sa-haran African region rose 29 per-cent to 333 million square metersequivalent — with a value of$1.21 billion — for the year endedApril 30, according to the U.S.Department of Commerce.

Zoellick also urged the Africancountries to move away from adependence on textile and appar-el production.

“We need to focus on diversi-fication as we are seeing in-creases in imports like cars andice cream from South Africa,fresh-cut flowers from Kenyaand Tanzania, and processedlumber and auto parts fromGhana,” he said.

Kenya stands to gain a lot ifCongress introduces and passesan extension of AGOA and its tex-tile provision, said MukhisaKituyi, minister of trade and in-dustry. The country dramaticallyincreased its apparel exportsunder AGOA from $45 million in2000 to $130 million in 2002,while apparel employment rosefrom 8,000 to 17,000. This year,Kituyi projected apparel exportsof $250 million and employmentof 42,000 workers.

“But the economic and socialbenefits of AGOA will be compro-mised if future investors relocateto Southeast Asia,” Kituyi added.

Barbs Fly at Africa Trade Parley3

Continued from opposite pagein a difficult retail operating en-vironment in reducing debt andbuilding a workable strategy.”

Bergren’s strategy involvesopening two or three new-formatstores a year, mainly in smalleror mid-sized markets in the Mid-west where Kohl’s and other bigcompetitors have yet to enter.The new stores have 55,000square feet — versus 70,000 onaverage for the older stores —and feature central customerservice centers for faster check-outs, self-select cosmetics, a com-bined juniors’ and young men’sshop called The Zone, and abridal registry kiosk. Elevensuch stores are operating, andanother will open in Muscatine,Iowa, in November.

“No one can complain aboutthis deal,” said William M. Smith,president of Financo Inc. “It gives100 percent return to stockhold-ers, and they don’t have to worryabout the issues facing publiccompanies today. Elder-Beerman

management was successfulbringing a source of funds that al-lows this company to actuallyhave some capital for growth.”

Considered the nation’s ninthlargest independent departmentstore chain, the Dayton, Ohio-based Elder-Beerman operates68 stores in Ohio and seven otherstates. The chain posted net salesof $639.8 million last year com-pared with $643.1 million in 2001,and a net loss of $14.2 million, in-cluding special items.

Wright Holdings is ownedsolely by Marathon Fund LimitedPartnership IV, a private invest-ment fund managed by GoldnerHawn. Wright received writtencommitments from Marathonand affiliates of Fleet FinancialGroup to fund the merger andprovide working capital.

Michael Sweeney, managingdirector of Goldner Hawn, is ex-pected to become chairman ofElder-Beerman succeedingSteve Mason, the nonexecutivechairman.

Elder-Beerman Deal

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By Amanda Kaiser

ROME — Bulgari chief executive Francesco Trapani isoptimistic that better times lie ahead for the luxurygoods industry, but he predicted that some companiesmay still have to make sacrifices to stay competitive.

“We can’t think about returning to the rhythms of1999 or 2000; I think those times are well behind us,”said Trapani in an exclusive interview at the company’sheadquarters here overlooking the Tiber river. “But Ithink it’s realistic that the situation for next year couldbe better than that of today.”

But even though the war in Iraq is over and there is evi-dence that the spread of SARS has slowed, Trapani warnedit could take a while for customers’ emotions to rebound.

“For the last two and a half years, people have heardthat things are always getting worse,” he said. “Maybe[the industry] is even more linked to mood than to eco-nomic trends.”

Trapani also said he expects more and more compa-nies to trim the fat on their budgets and reduce theirhead counts.

“Companies took a series of steps in the hopes that2003 would be a much better year….Unfortunately, it isturning out to be a very tough year, tougher than 2002,”said Trapani. “I think we’ll see companies firing peopleand take measures to boost efficiency.”

Just this month, Compagnie Financière RichemontAG said it plans to slash 200 positions, or about 5 per-cent of the group’s Swiss-based watch-manufacturingworkforce, amid plunging profits and sales. Meanwhile,Prada Group chief executive Patrizio Bertelli said earli-er this week he expects the company’s profits to jump atleast 30 percent in 2003 over the $31.1 million seen in2002, thanks to Prada’s cost-cutting efforts.

Bulgari also has worked to cut costs and protect itsmargins, as sales growth has slowed from the boomyears of the past. Net profit for fiscal year 2002 rose 12percent to $90 million, while sales grew just 1 percent to$915.5 million. In local currency terms, profits totaled76.1 million euros on sales of 774 million euros.

In the first quarter of this year, net profit climbed 26.7percent to $13.5 million as revenue for the period in-creased 3 percent to $190 million — or 11.4 million eurosand 160.6 million euros, respectively. Dollar figures havebeen converted from the euro at current exchange rates.

Trapani said Bulgari is fine-tuning its structure to re-duce costs without resorting to drastic measures likeclosing stores or shuttering factories.

“We do small things that in one way or another createbig benefits,” he said.

For example, last year Bulgari dismantled a unit thatoversaw travel retail for all of the company’s divisions.Now each department handles its own travel retail op-erations and Bulgari has a lower headcount. Some peo-ple were transferred to other divisions. It also recentlycut 20 jobs in its U.S. operations, mainly administrativeand back-office functions. Similar cuts could occur else-where in the world as the company moves to hold downcosts, said Trapani.

In the past, Bulgari has also cut costs on advertising.In 2002, promotional expenses declined 25 percent to$89.89 million. Trapani said Bulgari will have to tweakits original ad budget for 2003.

“We had a rather aggressive plan for this year at thebeginning of the year, but unfortunately, we have to ad-just our ambitions a bit because then there was the war

in Iraq and SARS,” he said. “I think it will be a year inwhich we will invest more than the past year but not asbig an increase as we had hoped for initially.”

Trapani noted that market conditions are even morechallenging for smaller, less-established brands or thesmaller components of luxury conglomerates’ portfolios.He said some of these companies have seen “discourag-ing” results as they rapidly increased their store count.

“Probably what happened over the last few years wasthat several companies deluded themselves on the brandsthat they had,” he said. “They thought that [any brand]with a good style and a good product could expand.”

Bulgari, on the other hand, has continued to focus onits single brand (although it has acquired other brandsthrough its Opera investment fund) and is hoping itsgems will sparkle through the sector’s gloom.

“We want the client entering a Bulgari store to be re-ally taken by a product offering that is diverse, fun, newand different,” Trapani said.

The jeweler is proceeding with an “aggressive” planfor product launches over the next couple of years, said

Trapani, although he declined to provide a detailed listof upcoming items.

He did drop a few hints, though, including that jewel-ry and watches remain priorities. More specifically,Bulgari, pleased with strong sales of its Quadrato andRettangolo watch models featuring precious and semi-precious stones like black diamonds and topazes, wantsto produce more timepieces in this vein. Elsewhere, thecompany is eager to round out its offerings in handbags.

“At the end of this year, our assortment of bags willbe very interesting,” he said. “There will be at the endmore shapes, more-rigid ones, less-rigid ones, variouscolors, various materials and various prices.”

Trapani said Bulgari isn’t striving to become the nextGucci or Louis Vuitton in leather goods, but it is working togain credibility in this area. At the same time, it’s settingits sights on the upper tiers of the market. For example,Trapani said the firm plans to launch a line of limited-edi-tion handbags, although he stressed that this is a longer-term project and would happen next year at the earliest.

“We are working to find the best way to make a prod-uct, the Rolls-Royce of handbags,” he said.

Turning to watches, Bulgari’s second-biggest productcategory after jewelry, Trapani said Bulgari managed to sub-stantially grow its order book at the Basel watch and jewelryfair in April, despite the overall dismal mood at the event.

As reported, Bulgari had experienced problems withwatches in the past. Some analysts have said Bulgari’sfashion-oriented timepieces suffered as cash-strappedcustomers preferred more classic timeless watchesfrom brands like Cartier and Rolex. But Bulgari’s watchbusiness is clearly showing signs of improvement. Salesof timepieces in the last quarter of 2002 rose 28 percentat constant exchange rates. In the first three months ofthis year, watch revenue grew 6 percent at constant cur-rency rates, but rose only 1 percent in actual terms.

Trapani stressed that customers are looking for col-orful, unique timepieces. Bulgari’s more glamorousmodels include a watch from its Lucea collection fea-turing blue topaz stones on a bracelet-styled strap and aQuadrato model covered in pave diamonds and emer-alds. He said Bulgari still didn’t have data on the Luceawatch but that sales of the jeweled versions of theQuadrato and Rettangolo were promising so far.

“The response was certainly very positive,” he said.“In some ways the market is agreeing with our ap-proach and is inviting us to continue.”

Nor does Bulgari’s quest to reach out to customersstop at the jewelry counters in its stores. Next year theworld will finally get a glimpse of the first Bulgari hotel,which is slated to open in Milan in March.

The structure, featuring a giant glass wall overlook-ing a botanical garden, will be the first in a series ofseven to eight resorts to be opened in tandem with part-ner Marriott International Inc. Bulgari hasn’t decidedon the site of its second hotel but Trapani said the com-pany is mulling locations in Italy and abroad.

News of the venture, first announced in 2001, baffledmany in the industry, as Bulgari has a reputation for beingconservative in strategy and the use of its brand name.

But Trapani remains quick to defend the hotel strate-gy as a critical means to both keep Bulgari’s image pol-ished and stay close to “the people who count.” These re-sorts, he said, create a place where wealthy members ofthe local community can “meet one another, eat in therestaurant, or go to the spa, so that Bulgari is constantlyin contact with these people.”

Bulgari’s Trapani Bullish With Caveats4

HAUTE HONORS: Suzanne Saperstein,one of the world’s biggest coutureclients and a devout Francophile, cansoon add a new title: Legion of Honor.Saperstein said she and her mediatycoon husband, David, have receivednotice from the French Ministry ofCulture that they will be decoratedwith awards of merit for their supportof French culture and preservation ofantiques. The big spenders have a45,000-square-foot home in LosAngeles they consider an homage tothe great chateaux of France. “It’sthe first time they’ve ever given it to acouple,” Saperstein said. Theceremony is set for November.

I'M AB FAB, TOO: Sir Elton John isn’tthe only star who is set to make aguest appearance on “Absolutely

Fabulous.” Couturier Jean PaulGaultier will also make a cameoalongside Jennifer Saunders andJoanna Lumley for the show’s falltelevision season. The designer, alongtime fan, filmed the episodelast month.

HOGAN’S HEROES: If there’s one thingTod’s chief Diego Della Valle hastaught his son, Emanuele, it’s how tocreate mystique behind a brand. SoDad had to be quite proud of hisson’s impressive installation, “HoganRiders — Tales & Times of MotorcycleLifestyle,” which opened during theMilan men’s collections last week.“The motorcycle world is synonymouswith Hogan because of the freedomthat the brand inspires,” EmanueleDella Valle said. The 27-year-old and

his team compiled some of thehottest, most historic wheels to evergrace film — from the Yamaha in thefirst “The Matrix” film to one of theHarleys from “Easy Rider.” They evenwent as far as to bring in one of theoriginal “riders” from the 1969 roadfilm. Dennis Hopper, who rides withthe Guggenheim Motorcycle Club,stayed low-key in a private backlounge covered in original “Rider”posters. “I was completely blownaway by the research and the typesof bikes they found,” Hopper said.“There are posters from ‘EasyRider’ here that I didn’t even knowexisted.” For its contribution,Hogan introduced a new line ofmen’s travel luggage as well asbiker boots for men and women.The company also customized twobikes in Hogan leather that werelater auctioned for charity.

GLAM SLAM: The models all gatheredon Wednesday night for DIFFA’s Viva

Glam Casino night, hosted byMaggie Rizer and sponsored by MAC.With Todd Oldham working theturntables as DJ, Angela Lindvall,Michelle Hicks and Anouk Lepere hitthe dance floor, while Carol Altupped the ante playing blackjack.Fashionable types, including KellyKlein, Yigal Azrouel, John Truex, DavidLauren and Rafe Totentengo, madetheir way down to the Regent WallStreet for the event, though few tookthe party’s diamond theme to heart.“I couldn’t even bother wearingsocks,” said Peter Som, dressed forthe hot summer weather in a lightshirt and sandals.

BABY BUCCINI: The fashion tribegained a new member on Sundaywhen Kirna Zabête’s Beth Buccinigave birth to the 8-pound, 8-ounceJosephine Olympia. “I feel great,” saidthe elder Buccini on Thursdayafternoon. “I even made it to a Chloéappointment today.” Baby Josephine

will make her debut at the upcomingready-to-wear shows in September.

A STYLISH POUCH: The FlyingKangaroo is getting a makeover. InSydney today, Qantas Airlinesunveils uniforms created by localdesigner Peter Morrissey. Under a10-year contract, Morrissey hasredesigned everything from pilots’hats to baggage handlers’ cargopants and polo shirts.

Female flight staff will wear athree-piece suit with a knee-lengthpencil skirt or trousers in a blackstretch-wool blend, white stretch-cotton shirts, a men’s tie or women'sfoulard in a boomerang-circle printsilk charmeuse in earth tones,courtesy of Aboriginal design companyBalarinji. There are also two shirt-dresses. Ground staff wear charcoalsuits and Balarinji print shirts.

“I always wanted a Learjet,”quipped Morrissey. “Instead, I gotan airline.”

Fashion Scoops

“Probably what happened overthe last few years was that severalcompanies deluded themselves onthe brands that they had. Theythought that [any brand] with agood style and a good productcould expand.”

— Francesco Trapani, Bulgari

LONDON — Today’s definition of do-it-yourself has taken on a less stress-ful interpretation, thanks to two nou-veau wallpaper designers who havecome up with easier approaches tocustom wall treatments.

Rachel Kelly and DeborahBowness, who studied at LeedsUniversity together, have separatelycome up with interactive designservices that allow clients to cus-tomize their wallpaper patternswith decorative stickers, sold eitherseparately or with their handprint-ed rolls of paper. They see it as asimple solution to eliminate the dif-ficult steps of stenciling or spongingthose frequently used by profession-al designers at home.

“The main idea was to have funwith it,” said Kelly during an inter-view at her studio off Brick Lanein London’s East End. “It was alsoon the back of do-it-yourselftrends, suggesting that stencilingis actually a difficult technique todo well. It’s messy and can leaveblobs of paint where you don’twant it, so this way is easier andthe end result is better.”

Kelly and Bowness rented a flattogether at Leeds, but went theirseparate ways during their post-graduate studies. They don’t worktogether, but remain friends eventhough they came up with the samebusiness concept coincidentally.

Kelly studied design for textilefutures at Central Saint MartinsSchool of Art here, but when shegraduated two years ago, she saidshe knew her career path didn’tlead to a big textile firm.

“It’s not my thing churning outtextile patterns that I don’t like,”she said. “I wanted to be innova-tive in my designs and do something different.Interiors are booming right now and there’s roomfor more creative work.”

Kelly’s most recent design is a “Sex and theCity”-themed roll. Commissioned by Bailey’s IrishCream Liqueur to use for corporate events, the re-cycled paper is illustrated with sketches of kittenheels and stilettos in water-based inks. The inter-active part comes in the form of labels that stickon the inside soles of the shoes.

“Aside from deciding where the stickers shouldgo, the consumer can also write their name on thelabels for extra personalization,” she said.

In addition to personal commissions for privateclients, one of Kelly’s biggest projects has been the

reidentification of upscale chainOasis. This spring, Kelly gave everystore window in the U.K. her inter-active signature with a concept thatincluded acetate layers on a floralbackdrop, covered in high-glossvinyl flower stickers in similarshapes to kitsch doilies that werestuck directly onto the window.

Bowness has pursued a similarcareer path since graduating fromLondon’s Royal College of Art and isconsidering expanding her wallpa-per project into items for the home.

“I’m thinking of actually sellingthe objects that I print on the paperwith the rolls,” she said. “Itwould be like a 2-D meets 3-D kind of thing in a concep-tual kind of way.”

Bowness is talkingabout chairs. Her currentdesign, “Utility 2000,” fea-tures a tinted photographof a chair on a plain back-ground, with printed plug sock-ets at the bottom, electric fans andlife-sized lamps, creating a strangetrompe l’oeil illusion that allowsthe mind to believe they’re all real.She’s now contemplating sellingthe actual chair with the paper tocomplete the living room look.

“I like the way it brings thepaper to life,” she said. “It crossesthe boundaries of what’s real andwhat isn’t. It also challenges theconcept of wallpaper being flat; itdoesn’t have to be.”

Her favorite project to date wasdecorating the fifth-floor library atthe newly opened SoHo House inNew York. Not surprisingly, thepaper looks like a real bookshelf,with colored book spines filed neatly.

Her other designs include“Ruddy Ducks,” complete with kits of three differ-ent sized flying ducks, and “Cagey Birds,” which isa paper printed with old-fashioned birdcages andthe interactive birds to match. She’s also designedpaper with a life-size camper van that has glow-in-the-dark headlights, and rolls that are printedfrom a montage of photographs taken of the interi-or of a hut she once visited in Thailand.

A roll of Kelly’s wallpaper takes three to fourweeks to make and is priced at $275, whileBowness charges $165. Both can design to anylength. Interactive kits are sold separately from$33. Dollar figures have been converted from thepound at current exchange.

— Sarah Harris

BERLIN — Berlin might have a hot music scene right now, but itsdesign industry has a ways to go.

In a creative free-for-all in a city known for its pennilessartists, more than 100 participants in the Design Mai festival de-cided what, when, how and where to show their works, consider-ing public commissions, industrial clients and private patronsare few and far between in Berlin.

A potpourri of projects — some realized, others in proto-type form — underscored the problem-solving orientation

of much Berlin design, as seenin an exhibit at the VitraDesign Museum that kicked offthe festival called “DesignBerlin: New Projects for a

Changing City.” On the otherhand, the exhibit did little to push

forward the notion of what defines“Berlin style,” as Mateo Kries, the mu-seum director, said the breadth of sub-missions defied explanation.

For instance, it would be difficult tocompare Robert Knossalla’s aluminumand acrylic glass water taxi with RealitiesUnited’s hang-out-the-window loungechair — an aluminum chaise that can beinstalled on a girder inside one’s apart-ment for Berliners lacking balconies.

At least flexibility is an identifiablefeature of Berlin design, as seen inFuchs + Funke’s pack-it-up-and-take-it-with-you pillow chair, Maxi Jahn’s steelorigami cut-and-fold furniture orThorsten Franck’s “build-in-a-minute”furniture collection for urban nomads.Unusual materials also turned upeverywhere. There were stone throwrugs from Yoraco Gonzalez and soft gelchairs by Studio Aisslinger. Another Design Mai material high-light: Studio Aisslinger’s Loft Cubes, temporary living units toplace on rooftops for out-of-town guests.

“For a lot of designers involved, Design Mai was a chance toplay with ideas that never would have seen the light of day other-wise,” said Tory Lichterman, an architect involved with the LoftCubes project. “And just to have some fun.”

To wit, Berlin fashion designers and consultants Next GuruNow hung up seven years worth of restroom photos taken at fash-ion events and fairs around the world. Berlin designers Adam &Harbourth offered bags shaped like Swiss Army knives and MinedWork playfully tested reality with their life-size trompe-l’oeil book-shelves, set up in various Berlin galleries and bookstores.

— Melissa Drier

BEIGE HAMPTON: This month’s record rainfall has been a fairlydreary kickoff to the summer season, with many East Endersspending more time inside their homes than on the beach.

But Hampton Retreats, a company launched this year byreal estate entrepreneur Brad Zackson, has improved theappearance of some homes in the New York resort area byhiring interior designer Carlton Varney to put together a packageof all the amenities one might find at a luxury hotel, such asFrette linens, Ecru and Avancé bath and body products, andcolored candles and scarves of Varney’s own design.Considering the homes represented by Hampton Retreats havea minimum value of $1 million, with weekly rents starting at$6,000, a little good taste shouldn’t be out of the question.

Still, the proposal took Varney by surprise, considering aspresident of Dorothy Draper & Co., the oldest establisheddesign house in America, he is known for having designedJimmy Carter’s White House, The Greenbrier and The FairmontHotel, and was Joan Crawford’s decorator for 20 years.Providing a tasteful design package for homes he has neverseen, where the owners lock their belongings up in a closet forthe summer, was an unusual request.

“I never thought this would happen,” Varney said. “Bradcame to me and wanted me to provide the same look as youwould get in a hotel. To me it was far out. None of these housesare designed in a Dorothy Draper scheme. Each one is differentand I’m not a beige person. They come to me for magical color.My natural is a watery turquoise blue.”

But Zackson is spending money, buying reams of Frettesheets in every size from twin to a California king, neckrolls and

European square pillows for the beds, even the blankets,placemats and napkins, which will be delivered by trucks to thevarious homes — whether the traditional shingled beach housesor modern day McMansions — and picked up again for cleaningand service the next week.

As Zackson often told Carter on decorating decisions, “I’mnot into the politics of this. I’m only the decorator.”

Varney avoided the topic of whether the kind of clienteleHamptons Retreats would be targeting would really appreciatehis level of taste.

“I don’t want to get philosophical,” he said. “I think fromthe point of view of taste, there isn’t good or bad, there’s onlytaste. Somehow, your decorator has become a label. It’s atalking point like a Valentino dress. Decorators have becomelike labels, and that gives you entree.”

Besides, he said, the only thing one really needs for a goodweekend in the Hamptons is “the right partner.”

“It’s never any good without the right partner,” Varney said.“Somebody, for which no other reason, who is enjoyable. Forgetthe money part, just make sure they’re fun.”

POETIC HARDWARE: Inga Sempé, a rising French talent inindustrial design, finds beauty in functional objects, be it adoorknob or a potato peeler. One of her most talked-aboutdesigns is a “brush” bookcase designed for Edra: a metal frameentirely covered with synthetic bristles through which one slidesthe hand to get the books.

“I wanted to make something that is open and closed at the sametime,” said Sempé. “It’s perfect for people who are disorganized.”

She’s also winning raves for a pleated lamp she did forCappellini. Sempé, whose work is on exhibit through Sept. 14at the Museum of Decorative Arts in Paris, was born withcreativity in her blood and has already won a prestigious youngdesigner award from the city. Her mother is an artist and herfather, Jean-Jacques Sempé, is known for his illustrations,having created many famous covers for The New Yorker.

CASTING COUCH: Vladimir Kagan’s sleek and sculptural furnituredesigns have seduced the likes of Marilyn Monroe, Gary Cooper,Tom Ford, Donna Karan and Giorgio Armani. But only now, at75, has the German-born, New York-based Kagan truly crackedthe tough French market.

Furniture retailer Roche-Bobois recently asked him to play guestdesigner. The result, unveiled recently in Paris, is a curvaceouscouch with a removable wool cover, and a glass coffee table. Bothwill go on sale for $8,600 and $1,968, respectively, at most of its148 European stores and its 35 U.S. stores by the end of the year.

But what to put on the table? Why, the designer’s newautobiography, of course. Kagan said he expects to finishpenning “The Complete Kagan” later next year.

Burgeoning Berlin

A Wallpaper of One’s OwnW

WD, FRIDAY, JUNE 27, 2003

5

On The Drawing Board

Above, Rachel Kelly with her

wallpaper designs. Deborah

Bowness puts up wallpaper.

Carlton Varney and some of the products for Hampton Retreats.

Design

Tory Lichterman’s

“Loft Cube.”

Tory Lichterman’s

“Loft Cube.”

A stiletto design lamp.

A wicker games

radio cover.

NEW YORK — When it comes tobeauty muses, MAC has its ownunique set of criteria, usuallyheading in the completely oppo-site direction from the standardperfectly shaped waif with theMona Lisa smile. With connec-tions in the past that includenames as hip and controversialas k.d. lang, RuPaul and SandraBernhard, it seemed only a mat-ter of time before the iconoclas-tic cosmetics company wouldsign up a bona fide living legend.

With three Tonys, twoGolden Globes, one Oscar, oneEmmy and four husbandsunder her belt, the only thingseemingly missing from LizaMinnelli’s CV was a MAC make-up collection.

This October, MAC will in-troduce Liza for MAC, a make-up collection featuring prod-ucts designed to help the con-sumer re-create Minnelli’s leg-endary look, in particular thosespiky lashes and movie-starlips. The line, which is dividedinto a.m. and p.m. looks, in-cludes new shades of familiarMAC items, like Lipglass, LipPencil and Eye Shadow X 4, aswell as nail polish, mascaraand, of course, false eyelashes.Prices range from $9 for thefalsies to $32 for eye shadows,and shades of every item arenamed for Minnelli (Liza Red)and/or her showbiz lifestyle(Girl About Town).

Minnelli’s age of 57 isdecades past the prime of mostcosmetically contracted women,but MAC sees this as an oppor-tunity to attract a new customerto their brand. “She’s an icon,”said MAC president JohnDemsey. “She’s as famous forher legendary past and talent asfor her makeup look. MAC’smantra is all ages, all races, allsexes, and Liza is a womanwho’s older, has survived a lot,but is still standing, with astrong personal style. It’s a greatinspiration for the collection.”

While MAC has had its shareof in-your-face poster childrenin the past, including ShirleyManson, Lil’ Kim and Mary J.Blige, Minnelli is only the sec-ond for whom new makeupitems have actually been creat-ed. The first color collaborationwas with Sandra Bernhard inMay 2002, called Sandy B, for

which Bernhard posed as apinup girl. While Bernhardparticipated in creating a fewof the products developed forthe Sandy B promotion,Minnelli’s been involved withthe development of practicallyevery item in the line.

“This was much more of acollaborative effort,” saidDemsey of Minnelli’s role. “Itinvolved going to Liza’s home,spending time with her in herbathroom [as she went through

her makeup routine], under-standing her techniques, herusage in terms of lashes andmascara and the tricks she’slearned over the years fromWay Bandy and Kevyn Aucoin.We really got to know in depthhow she does her makeup.

“The idea of the Liza promo-tion is to establish a beautyicon so that, from a time-to-time basis, MAC can celebrateicons of beauty in a collabora-tive manner,” continuedDemsey. “It’s sort of like in theold days when French Voguedid the Salvador Dali issue orthe Picasso issue. It’s the ideaof establishing a collection andcollaboration with someonewho we think is a beauty leg-end. We collaborate with fash-ion designers, we work in filmand theater, but I thought itwould be interesting to workwith someone who is iconic interms of her makeup. After all,before there was the smokyeye, there was Liza.”

“She’s very interested in thisproject,” added James Gager,MAC’s creative director. “Somuch so that she wants to showour customers how to get thecheekbones if you don’t have thecheekbones. She has such a sig-nificant thing going on with theeyes and the lips. I admire peo-ple like her who’ve stayed thecourse of what they like versuschanging their look every 10 min-utes. All women should feel total-ly secure about makeup. It’s timefor the beauty industry to cele-brate the icons of beauty like her.She’s always looked modern.”

Minnelli’s vast knowledge ofmakeup tricks and tips comesfrom a lifetime spent on stageand in front of the cameras, beit the movie or paparazzi kinds.This knowledge meant comingto the table with specific ideasand opinions about what itemsshould and should not be in herline. The false lashes, for in-stance, had to meet theMinnelli mandates.

“They need to be light,”Minnelli stressed as she expert-ly displayed them betweenthumb and forefinger. “If they’relight enough, they’re so easy toput on.” Minnelli, by the way,keeps hers wrapped aroundwooden dowels to retain theirshape when not in use. Othermandates included red cheeksand shadows that gave dramaticshading and shape to eyes.

The promotion visual, shotby Michael Thompson, featuresthe softer side of Minnelli aswell as the softer a.m. shades,including pale pink eye shadowand lip gloss.

Liza for MAC will land inmost of MAC’s 660 points of dis-tribution worldwide on Oct. 2and stay on counter throughDecember. While Demseywouldn’t give specifics, plansare in the works for three per-sonal appearances in the U.S.,as well as some in Europe.Industry sources estimate salesof approximately $3 million.

“She’s a 57-year-old livinglegend who has lived the lifewith all the good and all thebad, and she’s still as iconic asshe ever was,” said Demsey. “Tome, her artistic sense of self andself expression has capturedpart of the spirit that is MAC.”

— Jane Larkworthy

The Beauty Report

post of executive vice president of corporate communicationsand external relations, in effect L’Oréal’s ambassador to Canada.The appointment underscores the importance that Agon hasattached to the task of raising L’Oréal’s profile and building itsimage in North America. It is a facet of the corporation that Agonfeels is underdeveloped.

It also represents a homecoming for Nadeau, who began his careerwith L’Oréal in Canada, rising to senior vice president and generalmanager of the Luxury Product Division before transferring to NewYork nearly six years ago as senior vice president and general man-ager of Lancôme. He was named to his present post two years ago.

Nadeau acknowledged Thursday that when he came to the U.S.he had expressed a desire to return to Canada in five or six years.While admitting he will miss his friends and retail partners in theU.S., the trip back to Montreal will be “a return to my roots.”

“It is a really positive move for everybody,” Agon said, notingthat Huber had held a parallel post in the U.K., where he wasmanaging director of the Luxury Products Division before mov-ing to New York in April 2002 and taking the helm of Kiehl’s. Hejoined L’Oréal in 1992.

Agon praised Huber’s performance in the U.K. and added thathe has “done a good job at Kiehl’s.” The word “opportunity” doesnot even begin to cover the size of this step for Huber, who isgoing from being the leader of L’Oréal’s fledgling counterculture,Kiehl’s, to chief of the second-biggest group of department storebrands, right behind Estée Lauder Cos., for 2002, according toconsumer tracking firm NPD BeautyTrends.

Sparked by the burgeoning Ralph Lauren, Giorgio Armani andDrakkar Noir businesses, the L’Oréal fragrance category gainedalmost six share points in the last five years, while skin care andmakeup each dipped three points, according to NPD. Laurenarguably has been the hottest brand on the fragrance bar since thelaunch of Romance in 1998. And Lancôme has remained a con-tender, ranking third behind Clinique and the Lauder brand.

But it has not been easy, considering that the Luxury ProductDivision has borne the brunt of the department store malaisethat has afflicted the entire prestige industry. Sales at the divi-sion were up 2 percent in 2002, but down 2.6 percent in the firstquarter, with Lancôme dipping 1.8 percent in a depressed mar-ket. But, according to industry sources, the trend has turned upin the last couple of weeks, particularly for Lancôme and theDesigner Fragrance Division, as well as Kiehl’s. “Our retail busi-ness is starting to turn in the right direction,” Nadeau said.

As president of the Canadian Luxury Products Division,Nadeau will succeed Pierre-Olivier Morlaas. But it was the newpost of executive vice president of corporate communications andexternal relations that seemed to excite Nadeau the most. “Forme, it’s a brand new opportunity to gain knowledge and identitywith all the divisions of L’Oréal — the mass market, the salon busi-ness and the active category, as well as luxury. It opens up a wholenew horizon,” he added, noting that it will give him the chance to“round myself up,” an opportunity that he would not have in thehuge, sprawling, American operation.

MAC’s Minnelli visual.

Continued from page one“She’s as famousfor her legendarypast and talent as for her makeuplook.”— John Demsey, MAC

“It is a really positive move for everybody.” — Jean-Paul Agon, L’Oréal USA

Liza’s Limited Engagement6

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L’Oréal Names Huber,Nadeau to Top Posts

Edgar Huber Luc Nadeau

REQUEST A PICTORIAL BROCHURE (212) 246-3780 / INFO@ROYALPROMO.COMDISPLAYS • COLLATERAL • RETAIL ENVIRONMENTS

By Stephanie Epiro

MILAN — Gucci Group creative directorTom Ford is putting a new signature onhis ever-expanding fragrance empire.

It comes in the form of Gucci PourHomme, a new men’s fragrance that willbe launched in the U.S. at the end ofSeptember; in Italy, France and Germanyand Spain in October, and rolled out inAsia in 2004. It is the eighth Gucci fra-grance to be launched in the Ford era.

Gucci Pour Homme is the first men’srelease from Gucci since the launch ofGucci Rush for Men in 2000. Speakingjust before Gucci’s spring-summer 2004men’s show here, Tom Ford, wearingcustom-made Gucci cowboy boots, saidthe fragrance heralds a return to anearlier era.

“It’s a classic man’s fragrance — and Ithink we are going back to that,” saidFord. “Gucci Pour Homme is a verywarm, very sexy, very masculine fra-grance in the kind of vein that you wouldhave maybe found in the Seventies.”

Gucci Pour Homme’s classic position-ing is not just because of its scent butalso the packaging, according to Ford.“The bottle is old glass — it is reallyquite heavy, and there are some detailswith the stamping on the bottom which isreally classic,” says Ford.

The heavy rectangular bottle with itsthick dark brown metal cap and en-graved geometric base was designed byFord with help from Gucci art directorDoug Lloyd. The scent is boxed in ablack-and-white check-print carton.

“The idea was to go with something alittle classic but kind of a little old fash-ioned, too, with the classic men’s Six-ties, Seventies pattern and it’s a play onthe stamp on the bottom of the bottle,”Ford explained. “The juice is quitewarm — it’s an amber color. I alwaysthink that the color needs to relate towhat’s inside — just likethe packaging and the ad-vertising needs to all beone concept — so thecolor is a little bit like co-gnac or scotch.”

The driving look of thescent’s positioning is theslick black-and-white ad-vertising campaign, fea-turing American modelDavid Smith reclining in aGucci suit and thick tie,shot by Marcus Piggott.

“I wanted the idea ofthis very classic guy,” saidFord. “[David Smith] is con-temporary and modern.He’s dressed in a suit andtie because I’m personallyin the mood for ties, I have been wearing alot of ties lately — maybe it’s because I amliving in London and to go to a lot of placesyou have to wear a tie and a jacket.”

Belonging to the spicy-woody family,Gucci Pour Homme’s distinct smell hasbeen made heady by ingredients includ-ing white pepper, ginger, papyrus wood,Orris Rhizome, amber and leather.

“I love the smell,” said Ford. “Thereis a lot of my personality in it, because Iam constantly drawn to warm fra-grances like amber and patchouli. Fra-grance is something you wear on yourskin, so there should be a sensual quali-ty about it.” Gucci Pour Homme’s juicewas produced by Robertet under Ford’screative direction.

The line will include eau de toilettesprays in 1.7 oz. and 3.4 oz. for $45 and$62, respectively; a 3.4-oz. aftershave lo-

tion for $45; a 6.8-oz. all-over shampoofor $25, and a 2.5-oz. antiperspirant/de-odorant stick for $17.

Accompanying the launch will be aholiday gift set, a first for the Guccibrand, according to Donald J. Loftus,president and chief executive officer ofthe New York-based CosmopolitanCosmetics Inc. Wella AG, Cosmopolitan’sparent company, which holds the Guccibeauty license.

The fragrance will be launched inabout 450 doors in the U.S., primarily spe-cialty stores, including Saks Fifth Avenue,Neiman Marcus, Nordstrom, selectBloomingdale’s and all Gucci boutiques.That’s a more targeted distribution for thebrand, Loftus noted, adding that in thepast, the Gucci distribution was four timeslarger. Loftus estimated the door countwill swell to 600 by Valentine’s Day andtop out at 750 a year after launch.

No one would talk numbers, but indus-try sources estimate thatCosmopolitan is aiming fora first-year retail sales tar-get of $15 million in theU.S. and $70 million at re-tail globally. To achievethose numbers, the compa-ny would have to invest up-ward of $29 million globallyin total advertising, promo-tion and in-store support,including more than $6 mil-lion in the U.S. Promotionwill include heavy sam-pling, scented strips inmagazines and catalogs andliberal use of rotators.

Launch work does notstop in Milan. The Guccihouse, which owns YSL

Beauté, has geared themselves up for anew Yves Saint Laurent fragrance launchnext week in Paris.

“It’s based on an older YSL fragrance[a men’s and women’s Rive Gauche] thatalready existed so it already had a foot-print. But it is a completely new fra-grance and has completely new packag-ing,” said Ford.

But Ford’s OK with the workload be-cause he says he enjoys it.

“Compared to other things I do, creat-ing perfumes is relatively painless,” saidFord. “Sometimes you kill yourself fordesigns, a shirt that’s gone in a seasonand then the collection is over and youhave to think of something new. There’ssomething nice about the permanence offragrance. Think how great the guy whodeveloped Opium must feel — it’s stillgreat, it’s still out there, it’s still going.”

By Samantha Conti

LONDON — Stella McCartney took a trip back in time to her childhood country home — with itsripened roses and her mother’s collection of antique bottles — to create her first fragrance, Stella.

“I grew up in the country around gardens and flowers and cannot walk past a rose withoutsmelling it,” said McCartney over a glass of champagne in the top-floor VIP room of her BrutonStreet store here.

“I have all these memories of flowers from my mum’s garden, of tuberose, lily of the valley,gardenia and carnation. I wanted to capture the fragility of the high summer rose when thepetals are just about to fall off. It’s not about skipping around the country in a frilly skirt on asummer day,” added McCartney, who spent her youth on a farm near Rye, in East Sussex.

McCartney’s fragrance, produced by YSL Beauté, will launch worldwide on September 13— her 32nd birthday.

YSL executives refused to discuss figures, but industry sources estimate that the fragrancecould do $30 million in sales worldwide the first year.

In the U.S., sources estimate that her fragrance will do anywhere from $8 million to $12million at retail in its first year on counter, where it will be available in 287 doors, includingSaks Fifth Avenue, Neiman Marcus, Nordstrom and selected Bloomingdale’s doors.

“Being English, I have a love for petal-y roses,” said McCartney who, when the projectbegan, handed Firmenich perfumer Jacques Cavallier and his team an Edward Steichenphoto of a rose in full bloom as inspiration.

“That rose is about life and death, and I work with opposites in my ready-to-wear collection,”she said. “I wanted to capture all sides of a woman — feminine, fragile, pretty and sexy. I alsowanted to make something that could be feminine and masculine, and be worn day and night.”

McCartney, who tested out sample juices on her girlfriends, said — put simply — she alsowanted something she could wear and get compliments on.

Stella’s top note of rose essence has been fused with peony flower and mandarin essence,while the heart note is based on rose absolute. The base notes of woody ambers inject a sexi-ness into the mix.

Chantal Roos, president and chief executive of YSL Beauté, a division of Gucci Group,said that building the fragrance was not easy: “It was very hard to find the balance betweenthe feminine and the sexy. In fact, some of the perfumers abandoned the project becausethey thought it was too hard.” She added that Stella is the first fragrance she’s ever devel-oped with a woman.

Later, at the New York launch party — held at McCartney’s West Village boutique Mondayevening — the designer said ruefully, “They didn’t tell me until after they had developed thescent how difficult that particular rose essence was to duplicate. I’m happy, though, that Istarted with the most difficult scent first!”

In the U.S., a 0.25-oz. perfume is priced at $95, while the eau de parfum sprays retail for$75 for 3.3 oz. and $58 for 1.6 oz., respectively. Two ancillaries also will be available atlaunch: a 6.6-oz. body lotion — McCartney said that in the past she has always preferred bodylotion to fragrance — for $35, and a 6.6-oz. bath and shower gel priced at $30.

McCartney calls Stella a “classy” fragrance. “This is not a cheap, one-off hit, and the lastthing I wanted to do was condescend to my clients. My goal is to create memories — like theones I have of my country garden.”

She designed the packaging herself, sketching the parfum bottle — which is shaped likeamethyst crystal — with her pencils. “I wanted the bottle to be something that would last andkeep forever, something precious and jewel-like. I really wanted to fight against the whole dis-posable culture of the Eighties and Nineties.”

McCartney said the bottle also should debunk misconceptions about her personal style. “Ithink maybe people out there were expecting something ‘rock chick’ or ‘girly girly’ or ‘LondonLondon.’ They may not have imagined this.”

The eau de parfum bottle, manufactured by Saint Gobain, was made from hand-polishedand hand-faceted heavy glass tinged in a plum shade. It sits in a silky satin padded box,shaped like a jewelry box. The fragrance itself is petal pink.

McCartney said she’s also excited about the stem-like applicator under the eau de par-fum’s glass cap. “I love those things,” said McCartney, referring to the applicator.“There’s something a little bit dangerous about putting on perfume with that thing. Andthere is nothing sexier than a man lifting up a woman’s hair and applying perfume to herneck that way.”

Ever the environmentalist, McCartney has created body products with 95 percent naturalingredients that contain no animal content, no artificial preservatives and no use of raw mate-rial in ecological danger. “I think this is the only product in the luxury goods market that cansay that,” she said.

The ad campaign has been shot by Craig McDean and will run over single- and double-page spreads in major U.S. and European fashion and lifestyle magazines. In the U.S.,advertising will begin running in September issues of Vogue, W, Lucky and Allure.McDean shot the images through crystals, McCartney said, to capture the spirit of Stella.While neither Roos nor McCartney would comment on projected advertising and

Continued on page 11

Tom Ford the Eighth:Gucci’s New Fragrance

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The new Gucci ad.

Gucci Pour Homme

Chantal Roos,

François-Henri Pinault

and Stella McCartney.

Stella’s New Star: Scent

PARIS — Parfums Kenzo will maintain itseclectic approach to beauty when it introducesKenzoAir, the new men’s scent, this fall.

KenzoAir is designed to defy traditionalthinking in men’s fragrance marketing, accord-ing to executives at the LVMH Moët HennessyLouis Vuitton-owned firm.

“Today, all the men’s fragrances that arelaunched on the market have a very machoapproach — [they’re about] manly men with asense of responsibility, who know where they’regoing,” said Patrick Guedj, Parfums Kenzo’s cre-ative director and head of marketing. “Men havethe right to stay children, to let go, to be free, tobe irresponsible and regressive in a way.”

Such a carefree attitude is apparent in thesingle- and double-page print advertisementsfor KenzoAir, directed by Guedj and featuringactor Vincent Martinez, who smiles dreamily and isbacked by a bright, practically cloudless, blue sky.

So, too, is this attitude in the 40-second spots, alsodirected by Guedj and starring Martinez and model KatyBraitman, which are destined for movie theaters. In one,the duo’s driving in a car. In the other, the couple reposesat the edge of a desert cliff while a paper plane flies by.

In both — and in the shorter TV clips to come —Martinez sings Bob Dylan’s “Blowin’ in the Wind.”

Paper airplanes also will play a leading roleas samples for KenzoAir, which was concoctedby Symrise’s Maurice Roucel.

KenzoAir will come as an eau de parfum,which includes notes of angelica, cumin, anisand extract of pure vetiver, and an eau de toi-lette, which contains notes of bergamot, anis,vetiver essential oil and vetiver from Haiti.

Also a variation on a theme is KenzoAir’sbottle. Created by Italian artist Laura deSantillana, the flacon’s size is the same for the90-, 50- and 30-ml. versions. What differs is itsglass content, which varies according to howmuch liquid is contained.

While Kenzo executives refused to revealsales projections, industry sources estimateKenzoAir could generate $5 million in whole-sale sales in its first three months after its

October introduction in France and Italy.The scent will be launched worldwide in 2004.KenzoAir will come as 50- and 90-ml. eau de toilette

sprays for $57 and $69, respectively. There also will be a30-ml. eau de parfum spray for $55 and a 20-ml. eau de toi-lette compact spray for $32.

Dollar prices have been converted from the euro at cur-rent exchange rates and are for France.

— Brid Costello

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3 The Beauty Report

NEW YORK — Carol-ina Herrera’s fra-grance brand is gettinga sassy little sister inmid-August.

With Carolina, afresh, oriental, fruityjuice, the brand isaiming to capture anew, slightly youngeraudience, notedMartha Brady, generalmanager of Puig NorthAmerica Beauty andpresident of Puig USA.Puig is Herrera’s fra-grance licensee. “WithCarolina, we have theopportunity to reach ayounger consumerwith fresh, new prod-ucts, and also to resupport the heritage of theclassic brand,” Brady added.

Carolina, which is positioned in the classicHerrera range, along with Carolina Herreraand Carolina for Men, is targeted to con-sumers in the 25- to 40-year-old range, whilethe classic Herrera brand tends to skew inthe 35-plus range, Brady explained.

“The smell is very young,” remarked thefragrance’s namesake, designer CarolinaHerrera, during a launch party at her show-room earlier this week. “We’re bringing a newconsumer into the Carolina Herrera worldwith this fragrance. And much of the work onit was done by my daughter, Carolina.”

Carolina A. Herrera, the designer’s daugh-ter, worked closely with her mother andInternational Flavors and Fragrances’ CarlosBenhaim to devise the juice, which has topnotes of bitter orange, wild strawberry leavesand cardamom; middle notes of rose petals,pepper and wild berries, and base notes ofcashmere wood, natural vanilla, amber andtransparent musk. The juice is packaged inthe same-shaped bottle as the originalCarolina Herrera fragrance — a rounded rec-tangular tower — but the new scent’s bottlehas been updated with gold touches and atransparent finish. The outer packaging iswhite with metallic polkadots.

The Carolina collection includes eau detoilette sprays in 1.7-oz. and 3.4-oz. sizes, re-tailing for $49 and $69, respectively; a 6.7-oz.body lotion for $25; a bath and shower moussefor $23, and a shimmering talcum powder for$15. Youthful ancillary additions are plannedfor the spring, noted Brady, who added thatthey will “present another opportunity tospeak to youthful consumers and offer im-pulse-purchase-priced products to them.”

The fragrance will be available in about300 doors in the U.S., including Saks FifthAvenue, Neiman Marcus, Nordstrom andMarshall Field’s, noted Brady — in manycases, where Herrera’s ready-to-wear line isalso part of the mix. “We want to distributethe juice where the fashion is also distrib-uted,” said Brady.

While Brady wouldn’t comment on project-ed first-year sales or advertising and promo-tional spending, industry sources estimatedthat the Carolina lineup would do between $8million and $10 million at retail in its firstyear on counter in the U.S., and that about $3million would be spent on advertising andpromotion.

National advertising, breaking inSeptember magazines including Vogue, Elle,W and In Style, “renews the awareness of theCarolina Herrera brand — both introducingthe newness and resupporting the classic ele-ments of the brand,” said Brady. The cam-paign, featuring Dutch model Yfke Sturm,was shot by Patrick Demarchelier and also in-cludes images of a polkadotted butterfly andthe classic Carolina Herrera graphic icon.

An intensive sampling campaign will in-clude direct mail, scented strips, deluxe minia-tures and vials on cards. Upward of 50 millionscented impressions are planned, said Brady.

— J.N.

KenzoAir: Flying Against Tradition Designing Women:Scent a Joint Effort

NEW YORK — Prescriptives’ Traceless is getting two sib-lings this fall: a new-age concealer and a high tech powder.

“When we launched Traceless Skin Responsive Tintin October 2001, we brought a new customer to our coun-ters — the foundation-phobic woman,” said DebraClark, senior vice president of global marketing forPrescriptives. “Now, we’re deepening our commitmentto that consumer with Prescriptives Skin Corrector andTraceless Skin Responsive Powder. We think they willbring renewed interest to the category, without cannibal-izing our existing business.”

The technology developed for Traceless in 2001 issaid to use invisible colorwaves inside of light to neu-tralize skin imperfections and even out the complexion.The new items use similar technology, although adaptingit for concealers and powder presented a challenge,admitted Mari Yamasaki, vice president of productdevelopment for Prescriptives.

“We wanted to get the formulas just right, so we reallytook our time,” Yamasaki noted, adding that these two prod-ucts have been in development since the first Tracelessproduct launched nearly two years ago. “With SkinCorrector, we devised a mousse-like texture which moveswith the skin and doesn’t settle into lines. And Skin

Responsive Powder is for-mulated with microlucentpowders and a special sili-ca-treated mica for a naturalfinish. And since the prod-uct is dispensed through apuff that is built in to thepackaging, you get the cor-rect amount every time.”

Each product is avail-able in five color levels,noted Yamasaki. The con-cealer retails for $18, whilethe powder retails for $28.

While none of the execu-tives would comment onprojected first-year salesfor the two new products,

industry sources estimated they would do about $6 millioncombined at retail in their first year on counter in the U.S.,effectively doubling the Traceless franchise in the U.S. Theproducts will be available in October at Prescriptives’ 850U.S. department and specialty store doors and online atprescriptives.com. They launch globally in November.

While national advertising is not planned, Prescriptivesplans to do 100 million mailers and 15 million blow-ins pro-moting the new items this fall, noted Clark.

— J.N.

NEW YORK — Elizabeth Arden isplanning a little face time thissummer, with significant newintroductions coming in both colorcosmetics and skin care.

Color Intrigue, the brand’s newlipstick lineup, includes 24 shadesbroken down into five color families —reds, corals, neutrals, pinks and plums —in both cream and pearlized formulas,noted Lisa Mataro, vice president ofmarketing for Elizabeth Arden. ColorIntrigue also introduces new lipstickpackaging for Arden — a black case witha smoky overlay with the Arden nameseemingly floating inside. The squarepackaging, designed by RicardoGambaccini, features rounded edges andgold accents, while the outer packaging isblack with an overprinted pattern ofArden’s red door logo. The interior of thelipstick carton is a pop of crimson.

As well, Arden will introducecoordinating Smooth Line Lip Pencilsin eight shades.

Each lipstick retails for $17.50, whilethe lip pencils are $15 each. All will beon counter in mid-August in Arden’slineup of 1,500 department andspecialty store doors. National

advertising is planned and will break inSeptember magazines, and more than 7million mailers and blow-ins are alsoplanned. While Mataro wouldn’tcomment on projected sales oradvertising, industry sources estimatedthat the lip products would do about $5.5million at retail in their first year oncounter and that about $1 million wouldbe spent on advertising and promotion.

Arden’s also facing summer with anew addition to the Ceramidesfranchise, Ceramide Plump PerfectMoisture Cream SPF 30. The productwas inspired by the growingcosmeceutical trend, noted Mataro.

“For the first time, Plump Perfectcombines three ceramides in oneproduct,” said Tony Vargas, director ofskin care research and developmentfor Elizabeth Arden. “Ceramide 1helps to strengthen skin, ceramide 3helps to moisturize it and ceramide 6helps to exfoliate and retexturize.” Aswell, he noted, Plump Perfect includesargireline, a hexapeptide that isintended to plump up lines on skin,and polyquat, a polymer which is saidto bond to the skin to lock in moisture.Plump Perfect retails for $55 for 1.7 oz.

and will be available in Arden’s fullU.S. distribution in mid-July.

Arden plans national advertisingfor Plump Perfect beginning in Augustmagazines, as well as a samplingcampaign aimed at getting more than500,000 samples into consumers’hands. While none of the executiveswould comment on projected sales oradvertising spending, industry sourcesestimated that Plump Perfect woulddo about $3.5 million at retail in theU.S. in its first year on counter and thatabout $1 million would be spent onadvertising and promotion.

— Julie Naughton

The new Carolina scent.

Arden Expands Face Range

Traceless Adds Two

KenzoAir

Arden’s new lipstick.

The Traceless additions.

NEW YORK — Rite Aid is “Your one-stop beauty shop.” CVS proclaims its“100% Money Back Guarantee…is aBeautiful Thing.” Walgreens has “Hotlooks for cool savings” and “Low priceson skin care every day!” And Eckerd in-sists “Feeling beautiful starts atEckerd!”

So goes the drugstore battle for thesavvy, time-strapped beauty shopper.

As summer unfolds, the nation’sleading chains are heating up theirbeauty advertising. Cosmetics sales aredown for the first time in four years,and a fight is on to get them back.

According to ACNielsen, cosmeticretail sales at mass, drug and foodstores, minus Wal-Mart, fell 3.8 per-cent to $2.8 billion for the 52 weeks ended May 31. Salesin the facial makeup segment, including blush, fell 6.8percent to $805.5 million; eye makeup is down 0.3 per-cent to $732.7 million; lipstick slipped 3.2 percent to $732million, and nail polish/nail polish remover has contin-ued its downward spiral with another 8.8 percent drop to$338.1 million.

Fliers for the four major drugstorechains all put beauty in the spotlightthis week. With 10 to 30 percent offbrand discounts, $2 coupons and buy-one-get-one-for-one-penny offers,drugstores showcased their deals indouble-page spreads.

Beauty sales have become increas-ingly important to drugstores as pre-scription margins have narrowed. Inaddition, recognizing that the majorityof drugstore shoppers are women, re-tailers are keen to maintain depart-ments that will lure them in.

Larry Kagel, president of Comp-etitive Promotion Report, which trackshealth and beauty promotions, says cos-metics deals manufacturers are offer-

ing to retailers are up about 5 to 6 percent, although hedoesn’t view that size increase as a “significant change.”

He noted the industry is still surprisingly hopeful de-spite the shrinking sales.

“The economy is still weak,” said Kagel. “I would sayretailers are cautiously optimistic.”

— Laura Klepacki

NEW YORK — The bath category is getting a fresh and nat-ural new player that aims to add some innovation to thesleepy segment.

Sudz, a brand that targets the 20- to 30-year-old set,is an organic line of products with natural scents so pow-erful that seals don’t need to be broken to experienceeach item’s flavor.

The line, which launches July 15, is operated by TheOrganic Sudz Company, a new business by Kiss My Face, the20-year-old maker of natural face and body care products.

Sudz comprises eight bar soaps; six body washes,which are packaged in reusable water bottles, and twoself-foaming pump soaps.

The bar soaps, which are 85 percent organic and areglycerine based, are each designed to meet a specificskin care need. There’s Sports Bar, a rejuvenating blendof jojoba beads and eucalyptus; Honey Pot, a combina-tion of honey and hemp oil for dry skin; Salad Bar, ablend of parsley and lycopene to refresh skin; In the Pink,a complexion bar with alpha hydroxy acids, and BareNaked, an unscented pure glycerine bar for sensitive skin,as well as Close Encounter deodorizing bar; Rough Seas,an exfoliating bar, and C-Weed, a skin-calming bar soap.Each retails for $5.95.

Sudz body washes, which will retail for $6.95, are avail-able in corresponding flavors to the bar soaps, except forNaked and Rough Seas. Self-Foaming hand soap, which ispriced at $7.95, is available in Salad Bar and Honey Pot.The items ship nationwide to retailers such as Whole Foods,Longs, Duane Reade and Trader Joe’s. Sudz also will be pre-sented to the mass retailers. “They are trying to get 20-year-olds into their stores. This will help,” said Kiss My Face co-founder Bob Macleod.

Macleod and co-founder Steve Byckiewicz also are con-sidering entering sporting goods stores as a new retail base.

“They have never sold body care,” said Byckiewicz ofthe sporting goods retail industry. “But they never used tosell clothes either.”

Macleod and Byckiewicz will attend The OutdoorSporting Convention in Salt Lake City, Utah, in August topitch their products. Currently, Kiss My Face products aresold in 10,000 stores nationwide. Sudz is scheduled toarrive in 500 stores by the year’s end.

The 16-item Sudz line is just the beginning, Byckiewiczsaid. “They are the first of what will be a much bigger brand.”Future plans include expanding Sudz into the hair care, shaveand household cleaning categories.

Sudz could generate $3 million in first-year sales, ac-cording to industry sources. Kiss My Face, which is pri-vately owned and based in Gardiner, N.Y., generates near-ly $30 million in annual wholesale sales, sources added.

Fictional characters, Dirty Dora and Sam Shave, havebeen created to promote the brand in print advertisingcampaigns, which break in beauty magazines in the fall.

— Andrea M.G. Nagel

MUGLER’S MUSE: The classic Thierry MuglerAngel got a shot of stardust this week, whenVera Strubi, president of Thierry MuglerParfums Worldwide, joined Benjamin Gillikin,president of Thierry Mugler Parfums NorthAmerica, at a reception introducing thebrand’s new spokesmodel to U.S. audiencesthis week. As reported, model Anna-MariaCseh has signed a three-year contract to bethe face of Angel, joining a select group thathas also included Estelle Hallyday, Jerry Halland Amy Wesson.

TENDERIZED: The contentious tender offer forthe outstanding shares of Wella, which Procter& Gamble Co. wrapped up last Friday, left theCincinnati-based giant with control over 79.2

percent of the German beauty firm’s totalregistered share capital and 84.9 percent ofthe value of the outstanding shares, based ontender offer prices and excluding treasuryshares held by Wella.

In all, 9.1 million, or 20.5 percent, of the

voting shares were tendered as well as 10.2million, or 43.5 percent, of the preference shares.Including P&G’s stake, there are roughly 67 millionWella shares, 23 million of them preference sharesand 44 million of them voting shares.

P&G can now go ahead and purchase thetendered stock, once regulatory approvals areobtained, and begin working with Wella’smanagement on a joint business plan.

ONE PLEA DONE, ONE TO GO: Eric Sorkin, aformer Rite Aid Corp. vice president in thepharmacy services department who is currentlyon administrative leave, pled guilty Wednesday toa criminal conspiracy count in a federal districtcourt in Harrisburg, Penn. Sorkin could spend upto five years in prison, will pay $250,000 in finesand faces up to three years of parole. Thegovernment is expected to seek a lesser sentencebecause of Sorkin’s help in the government’s

investigation in one of the largest corporateaccounting scandals in U.S. history. A formercolleague, Franklin Brown, the company’s formervice chairman, was scheduled to change his pleato guilty on Thursday. That hearing waspostponed, and its new date couldn’t beimmediately determined. As reported, formerchairman and chief executive officer MartinGrass and former chief financial officer FrankBergonzi changed their pleas to guilty earlier thismonth just before their trials were set to begin.

PRADA’S NEW HIRE: Kristin Stevenson wasnamed marketing director for Prada Beauty onWednesday. In this role, Stevenson will beresponsible for the marketing and seasonalprograms for the Prada Beauty brand.Stevenson will report to Martha Brady, generalmanager of Puig North America Beauty andpresident of Puig USA.

TOP NOTES

Drugstore Ads Shout Beauty

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D, FRIDAY, JUNE 27, 20039

NEW YORK — Dlish has hit pay dirt with some Clean-smelling scents.

Since the launch of Clean and Clean Sweet Layer inApril, the sweet, soapy scents have seen such a positiveresponse that already Canada-based Dlish FragrancesInc. has added Clean Soft Body Lotion, Clean PurePerfume Oil and Clean Men.

Sales are at an excess of $750,000 and are expected tohit $1 million by fall, as Clean continues to top bestsellerlists at Sephora stores worldwide and at select HenriBendel, Fred Segal, Holt Renfrew, and Jeffrey stores.Nordstrom also recently picked up the line and it willdebut in stores next week. Retail prices range from $59 foran 8-oz. lotion to $120 for a 4.5-oz. eau de parfum.

The original “just-out-of-the-shower fresh smell”that defines Clean fills a void in the current fragrancemarket, as each begins with a bar of soap.

“People want fresh, not that heavy synthetic fra-grance,” said Laura Saio, merchandise manager of beau-ty and fragrance at Henri Bendel, New York. “[Clean]has a distinct specialness — it’s not a mass fragrance,”she said. “It smells like spring in a bottle, and you knowhow desperate New York has been for spring.”

At a beauty event at Bendel’s in April, the Cleantable attracted “The Sopranos” starlet Jamie-LynnSigler, a fan of Clean, who hung around and auto-graphed a few bottles.

Jesus Canchola, Sephora fragrance buyer, confirmedthat there have been many customer requests for Cleanproducts. “There is nothing quite like [Clean] in themarket right now,” he said. “Few fragrances receivesuch a positive response.”

One would think that Randi Shinder, mastermindbehind Dlish and the Clean lineup, would be an indus-try connoisseur with a long-standing history in the fra-grance business, but she is just as new and fresh in theindustry as Clean fragrances.

A self-proclaimed cosmetics junkie, Shinder, Dlishpresident and founder, received more compliments justout of the shower than drenched in perfume. Thougheveryone has a different interpretation of the soapysmell, Shinder’s inspiration was the original Dove bar

and the desire to create something basic and simplistic.“The world is complicated. I’m a mother of two. Clean’s

philosophy embraces what’s optimistic in the world, whatwe all strive for and lust for but have lost,” said Shinder.

Many things that are sure to hold true to Clean’s phi-losophy can be expected from Shinder in the upcomingmonths. A lifestyle brand offshoot, Clean Brand Inc., hasits business mechanisms in place and is currently inplanning and designing stages for towels and other homeproducts. In July, Clean will release a 0.8-oz. roller-ballbottle of its perfume oil and has teamed with Sephora ina special promotion with a travel-size bottle of Clean-to-Go. There is also a holiday scent collection planned.

While remaining somewhat exclusive, a new back-to-school line called Clean Girl is being released inAugust. Clean Baby Girl, a baby-fresh eau de toiletteand Clean Fun, a fruity and soapy scent in a roller-ballbottle, will make Clean products more accessible to ayounger demographic with a lower price point. “CleanGirl is for the young and young at heart,” said Shinder.In the future, advertising for Clean will comply with itsphilosophy by addressing current, relevant issues inthe world and by pledging that Clean products are freeof “things that bother us everyday,” said Shinder. Cleancontains “no animal testing, racial profiling, reality TVor insider trading,” she said.

— Kristen Van Hoesen

Soap Inspired Scent Cleans Up

Kiss My Face Puts Sudz in BathAn ad from Eckerd.

Clean products.Clean products.

Items from

the Sudz line.

Items from

the Sudz line.

Anna-Maria Cseh, Benjamin Gilliken and

Vera Strubi.

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The HBA Report

By Andrea M.G. Nagel and Stephanie Epiro

NEW YORK — Don’t expect to find the Beauty and BarberSupply Institute trade show this July in Las Vegas.Cosmoprof North America is heading for the Vegas strip.

Cosmoprof, an Italian trade show that some consid-er to be the most well rounded and inclusive beautyevent for the industry, has formed a partnership withBBSI and is bent on raising the bar with a completebeauty show that is designed to be more prestigiousand easier to navigate than previous efforts.

In short, everything has changed.Cosmoprof ’s reputation as the best-attended beauty

trade show — its Bologna event is the world’s largest —is helping garner exhibitors and attendees to its NorthAmerican debut. Running from July 27-30 at the LasVegas Convention Center, more than 600 exhibitors areexpected to spread out over 190,000 square feet.Cosmoprof, which is organized by Italy-based SoGeCosSpA, has teamed up with BBSI, an association of salondistributors, the usual hosts of the summer show, for itsNorth American debut. Cosmoprof also hosts annualshows in Asia and South America.

The most obvious changes to this year’s event will bethe clearly divided sections of cosmetics and toiletries,packaging, wellness, professional products and ademonstration forum.

“It is very important to know that Cosmoprof NorthAmerica is not about hairdressers,” said LauraZaccagnini, general director of Sogecos, referring toBBSI’s show format, which catered exclusively to thesalon industry.

Cosmoprof, on the other hand, targets nearly everyrole in the beauty industry from manufacturers, dis-tributors, importers, exporters, manufacturer repre-sentatives to chain salons, salon owners, salon man-agers, hair stylists, nail technicians, estheticians, mas-sage therapists, cosmetology school owners and stu-dents. Also scouting the aisles will be buyers fromdepartment stores, specialty stores and chain drugstores, such as Eckerd and Rite Aid. Kmart and Targetbuyers are expected to visit the show, too. And noweach attendee will be able to easily navigate throughthe large floor plan, since each pavilion will be dedi-cated to specific product categories.

Pavilion A will feature international cosmetics com-panies, with businesses representing Spain, Germany,Israel, Italy and China, many of which are seeking U.S.distribution. On display will be a gamut of finishedproducts from prestige department store fragrances tocolor cosmetics.

Cosmetic Lab, for example, a Paris-based company,is seeking a U.S. distributor to launch its Elyor skin careline, which is sold in France, Italy and Hong Kong. Elyorproducts target the upper segment of the market withupscale packaging and silky formulas that are com-prised of fruits and plant extracts.

Pavilion A will also feature health products, hairaccessories and home decor items.

In pavilion B, packaging, contract manufacturing

and private label exhibitors will be found. Design agen-cies and packaging machines round out the pavilion’sexhibitor list.

In pavilion C, wellness, professional skin care, spaproducts and equipment will be presented. Everythingfrom suntanning lamps to electro-stimulation accessoriesand hydro-massage baths will be there, in addition tocomplimentary wellness education seminars. Featuredspeakers include Dr. Howard Murad, Amby Longhofer ofDermaNew and Lydia Sarfati of Repechage Spa. A spademonstration stage will also be in pavilion C, highlight-ing the newest product spa lines and spa treatments.

Everything needed to stock the shelves of a salonwill be featured in pavilion D. Hair care, tools for hair-dressers, professional clothing, scissors, razors andproducts for nail reconstruction will be offered there.

However, several key professional hair care compa-nies, such as L’Oréal Professionel and Clairol Prof-essional, will not be exhibiting.

Hair stylists will have an entire area, pavilion E,completely dedicated to them. There they will be ableto see and learn the latest hair innovations at LooksMainstage & Expo. Looks features international artistsfrom the UK, Spain, Japan and the U.S. in 90-minutehair and fashion presentations.

Hair stylists will also be able to sit in on several com-plimentary hair education seminars. For example, styl-ists could learn the latest in Japanese hair straighten-ing from Fernando Romero of Bio Ionic, a hairstraightening company he founded.

Classes for nail technicians abound at Cosmoprof,with presentations by OPI, Creative Nail Design,NailCare and Seche, running throughout the day onSunday and Monday.

Staying true to Cosmoprof ’s new layout, attendeesand exhibitors will only be allowed to enter spacesaccording to what their badge permits.

“No hairdressers will be able to enter other sectorsbesides Looks, not because we don’t like them, it’s just thatif you have the correct badge you will be able to accessyour area of your interest exclusively,” said Zaccagnini.

Moreover, Italian style has been injected into the lookof the exhibitor booths. First to be tossed aside was the oldpipe-and-drape decor. “It looked dreadful,” Zaccagninisaid, adding that Cosmoprof was insistent companies taketheir raw space and build it into a prestige-type booth, ortake one of Cosmoprof’s turnkey booths with three 2.5-meter walls. Decor guidelines were also instituted to helpdifferentiate one area from another.

Cosmoprof is also issuing advertising communica-tions to promote and explain each area.

“This is not technical, it’s marketing — it’s the wayyou introduce your company and it’s important,”Zaccagnini said.

Zaccagnini said it took “months to make [BBSI’susual exhibitors] understand this concept.” But otherexhibitors, especially those familiar with Cosmoprof ’sflamboyant flavor, are used to the guidelines and areeven looking forward to making a dramatic boothimpression for their American debut.

Davide Bollati, founder and chief executive of Parma,Italy-based beauty company Davines Group, is spendingnearly $300,000 on the construction of his 1,800-square-foot booth. He’s hired architects Jacques Herzog andPierre de Meuron of Basel, Switzerland, the recipients ofthe 2001 Pritzker prize, to construct the Davines booth.

“In Europe we are used to this type of investment,”Bollati said. “This is a conference where you will meetwith your best clients and distributors. And, becausewe are in cosmetics, I think [our image] is about a senseof beauty and aesthetics.”

The booth will be constructed of embossedstretched metal and will feature a wellness, styling andshopping space. “Each area is a vision of the salon inthe next five years,” Bollati said.

The upscale feel of Cosmoprof is sure to take manyof BBSI’s usual attendees by surprise.

“It’s not a BBSI event anymore,” said Steve Sleeper,BBSI’s chief executive and executive director. “A lot ofmembers are excited about it and have embraced thenew format. They knew our convention was diminish-ing and there was less and less need for a buyers con-ference. Some are grappling with the changes…but Iam sure we will look back 10 years from now and behappy,” Sleeper added.

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MILAN — How did the Cosmoprof and BBSI part-nership begin?

Though Cosmoprof is a young and stylish Italiantour de force, in order to successfully branch out intothe North American market, it knew it needed a part-ner. BBSI, a U.S. beauty industry stalwart that’s beenoperating since 1904 and has been putting on the pro-fessional salon trade show BBSI for more than 100years, admits it was in need of an image overhaul.

Steve Sleeper, BBSI’s chief executive and executivedirector, agreed. “Our annual convention had beengoing for nearly 100 years and we wanted to transformit into something major — something different.”

The company the two have formed, NorthAmerican Beauty Events, has raised out of the ashes ashow that many considered to be losing its luster —and attendance. Roles of the two companies are clear-ly defined. Cosmoprof is responsible for marketing,while BBSI handles registration sales and logistics.

“Our presence is minimized because of thestrength of the [Cosmoprof] brand. They are bringingto the table a specialized role,” said Steve Sleeper,BBSI’s chief executive and executive director.

According to Laura Zaccagnini, the beauty indus-try was ready for a new trade show, not just one thatcatered to the professional salon industry.

“BBSI looked down the road and saw that gettingbeauty and cosmetics under one roof was thefuture,” Zaccagnini said.

— S.E.

BBSI Lends Cosmoprof a Hand

Cosmoprof: Coming to America

Cosmoprof requires exhibitors to take the presentation

of their booths seriously — the low budget curtain-and-

rod format is banned from the tradeshow floor. Here, a

$300,000 booth from Davines Group, a Parma, Italy-

based hair and skin care company, designed by the same

architects of England’s Tate Modern.

Cosmoprof Bologna is

the world’s largest

beauty trade show.

MILAN — Italy has a soft spotfor love stories. And EmporioArmani is embracing the moodwith a new fragrance master-brand called Night.

The Emporio Armani fra-grance story began in 1998 withClassic. Next came EmporioArmani White in 2001. The lat-est of the series, Emporio Ar-mani Night, will roll out toEurope by the end of Sept-ember and Latin America andAsia at the beginning of 2004. AU.S. launch date has not beenset, pending results of the othermarkets, according to EdouardRoschi, the international branddirector for Emporio Armanifragrances and Fabio Mancone,general manager for GiorgioArmani fragrances.

The scents will be availablein three sizes; 100 ml. for $74, 50ml. for $54 and 30 ml. for $34.Prices are translated from theeuro at current exchange rates.

At launch there also will be1.5-ml. trial sizes, and a funkyflyer that looks like an invitationto a cocktail party, with a liquidpeel-off, will be distributed atspecial events.

Industry sources believeNight will pull in $45.6 millionin Europe alone within fourmonths of its release.

Mancone believes EmporioArmani Night is a star additionto a perfume folio that has creat-ed a niche all on its own.

“What we have now in ourfolio is first the classic couple,then paradise and pure inno-cence and lastly a foray intopassion and the mysteriousworld of attraction,” Manconesaid. “The positioning created aterritory that was unique for thehe-she concept. We wanted tomaintain the independence ofeach fragrance. The young spir-it is a very relevant target for usand the stories are relevant toyoung people.”

While Giorgio Armani fra-grances such as Mania andSensi had enjoyed worldwidesuccess in recent years, Man-cone said now was the time forEmporio Armani Night to stepinto the spotlight.

Propelling the launch will bea sultry advertisement starringEmporio Armani’s current facefor its fashion line, MillaJovovich, and upcoming malemodel Sebastien Andrieu.

Featuring the couple em-bracing on a stairway, the TVadvertisement was shot in LosAngeles by Erick Ifergen andthe still photographs taken byPeter Lindbergh.

The sexy advertisement willair in Italy, Germany, France andRussia for two weeks at launchtime in September and again atChristmastime. Globally, $23million has been allocated foradvertising.

Encased in cherry red andmidnight black rubberized alu-minum cylindrical containers,the fragrance duo were createdby different fragrance houses.“Giorgio Armani loved the ideaof mystery and something thatcan happen at any moment andhe had a vision for the colors ofblack for the night and red forpassion, love and tension,” saidMancone.

Night for Him, developed byIFF, sits in the oriental aromatic

family. The eau de toilette has topnotes of tangerine and grapefruit,middle notes of violet, sage oiland cayenne pepper and basenotes of cedar wood, myrrh oiland patchouli. Béatrice Piquet,Aleonore Massenet and YvesCassar, IFF composers of Nightfor Him, worked for a year and ahalf on the fragrance.

Created by Symrise, Night forHer will be released as an eau deparfum. The ambery woody flo-ral has top notes of cranberriesand hawthorn petals, middlenotes of lily of the valley, magno-lia and freesia, and base notes ofmyrrh oil and white musk.

Its creators, Jean ClaudeEllena and Lucas Sieuzac, saidthey wanted to describe theessence of femininity in Nightfor Her, their muse being aMediterranean woman.

Roschi said creating the per-fumes was a shared experience.

“We really got involved thistime,” Roschi said. “The wholemarketing team was smellingraw materials — broccoli andother ingredients.”

Added Mancone: “After theWhite launch it became quiteclear we had a third opportuni-ty to try and feature just beforea couple joins and those feel-ings of attraction which occursin the night — where youngpeople go out and meet andthere is that special tension.”

— Stephanie Epiro

The Beauty Report

promotional spending,sources estimated thatU.S. spending would top $3million.

And McCartney isn’t stop-ping with just one fragrance.“This feels like the begin-ning,” she said in London. “Ihope I have a lot of per-fumes in me.” In fact, at herNew York launch party,McCartney told WWD thatshe hopes this scent will bethe first step in a StellaMcCartney beauty collec-tion, which could includeadditional fragrances andperhaps even a color cos-metics collection at somepoint in the future. She has-tens to add, however, thatthe next project has not yetbeen started.

“[Beauty] really turns meon, and the beauty team hasbeen great to work with,”said McCartney in NewYork. “I’m really excitedabout going in this direc-tion.” But she’s determinednot to simply be a name on abottle: “With this fragrance, Ihad to make something thatI wanted to wear myself.”

— With contributionsfrom Julie Naughton,

New York

Stella McCartneyReadies Fragrance For Global LaunchContinued from page 7

Emporio Armani: Facing the Night

WW

D, FRIDAY, JUNE 27, 200311

The Night

masterbrand.

Bologna. Hong Kong. Sao Paulo. And now Las Vegas. An event like no other: the first truly complete and international beauty fairever held in North America, with a uniquely comprehensive array of products and services showcased by 1,000 exhibitors frommore than 30 countries on a total area of 20,000 sqm net.

Las Vegas - July 27-29, 2003

Beautyalways finds its way.

Organized by: NORTH AMERICAN BEAUTY LLC

Marketing and Promotion: SoGeCos spa - Via Filargo, 38 - 20143 Milan - Italy - Tel. +39.02.796.420 - Fax +39.02.795.036 - sogecos@cosmoprof.it

Sales Office North America, Canada, Mexico: BBSI - 15825 North 71st Street, Suite 100 Scottsdale, Arizona 85254 - U.S.A. - Tel. +1.480.281.0424 - Fax +1.480.905.0708 - terri@bbsi.org

Sales Office Europe, Africa, Middle East, Asia and South America: Fairsystem spa - Via Calzoni, 6/d - 40128 Bologna - ItalyTel. +39.051.415.6811 - Fax +39.051.631.0034 - fairsystem@fairsystem.it

• Cosmetic products

and toiletries

• Wellness, professional skincare,

spa products and equipment

• Professional hair productsME

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• Equipment for salons

• Nail products and tools

• Packaging

• Contract manufacturing

• Private labels ww

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NEW YORK — Nautica Enter-prises’ board of directors amend-ed the firm’s stockholders’ rightsagreement to remove an excep-tion for chairman and chief exec-utive Harvey Sanders, accordingto filings with the Securities andExchange Commission.

Barington Companies EquityPartners, which has been tryingto replace two members of Nau-tica’s board, recently called forNautica to terminate its “poisonpill,” or stockholders’ rights plan,which imposes penalties onstockholders seeking to acquire15 percent or more of the firm’sstock and limits stockholders’abilities to sell their stock.

In the original plan, the poisonpill provisions wouldn’t be trig-gered if Sanders and his affiliatesexceeded a 15 percent stake. Therevision makes the ceo subject tothe same 15 percent threshold.

Sanders currently holds 13.5percent of Nautica’s stock.

The amended agreement pro-

vides that the rights issued underthe stockholders’ rights agree-ment will be automatically re-deemed under certain circum-stances, in the event of certainqualifying tender offers, unlessstockholders vote to keep therights outstanding.

As reported, shortly afterBarington’s recent advances,which aim to maximize share-holder value, possibly through asale of the company, Nauticasaid it was in discussion thatcould lead to a sale of the firm.

As reported, sources have indi-cated that VF Corp. is hoping toink a deal before Nautica’s July 8annual meeting. Barington seeks,through a proxy fight, to replaceincumbent directors John Var-vatos and Charles Scherer withJames Mitarontonda and WilliamFox. The name of Michael Stein-berg, originally proposed as athird Barington nominee, waswithdrawn by Barington earlier.

— Evan Clark

Nautica Revises Poison Pill

By Vicki M. Young

NEW YORK — Expansion inoverseas markets helped NikeInc. overcome slower growthin the U.S. and report stellarfourth-quarter results.

The firm on Thursday postedan 18.1 percent jump in fourth-quarter net income to $246.2million, or 92 cents a dilutedshare, for the three monthsended May 31 from $208.4 mil-lion, or 77 cents, in the same pe-riod last year. Revenue rose 11.3percent to $2.99 billion from$2.68 billion a year ago.

Donald Blair, chief financialofficer, pointed out during aconference call with Wall Streetanalysts that business outsidethe U.S. delivered 16 percentgrowth during the quarter andfor the first time, grew fasterthan the U.S. region.

Last year, Blair said, thecompany delivered “a lot ofthat cash back to sharehold-ers,” buying back 1.4 millionshares for $76 million, part of afour-year, $1 billion share re-purchase program approved bythe board in June 2000, thecompany’s second such plan.

In the U.S., revenues rose 2percent to $1.2 billion, with ap-parel revenues growing 16 per-cent to $345.7 million. For theyear, U.S. revenues were flat,with apparel revenues up 8 per-cent to $1.4 billion. According tothe cfo, the quarter was themost difficult and challengingfaced in the U.S.

In Europe, which includesthe Middle East and Africa, rev-enues for the quarter rose 24percent to $945.3 million as ap-parel revenues rose 14 percentto $288 million. For the year,revenues rose 20 percent to $3.2billion, with apparel revenuesup 16 percent to $1.1 billion.

Asia Pacific, one of Nike’sfastest-growing regions, sawrevenues rise 22 percent to$362.6 million, with apparelpicking up 14 percent to $133million. For the year, sales wereup 19 percent to $1.4 billion,and apparel revenues jumped24 percent to $499.3 million.

Revenues in the Americasregion, which excludes theU.S., inched up 1 percent to$143.8 million, with apparelrevenues up 4 percent to $39.2million. For the year, revenuesdeclined by 7 percent to $527million, while apparel rev-enues were down by 11 percentto $148.1 million.

Charles Denson, president ofthe Nike brand, noted that thefirm expects solid internationalgrowth for fiscal 2004, particu-larly in the Asia Pacific region.The growth is expected to in-crease in the Japanese, Koreanand Chinese markets. Sales forthe year in Japan grew 17 per-cent for footwear and apparel,while sales in Korea grew 44percent. Sales in China rose 39percent and exceeded the $100million level. Europe, he noted,remains one of the firm’s most“consistent” growth regions.

In the U.S., Denson added,Nike’s contentious relationshipwith Foot Locker affected sales,and that business hasn’t yet sta-bilized. In addition, the compa-ny expected to see more of aturnaround during last year’sholiday season, but that didn’tmaterialize, with the U.S. gain-ing just 2 percent in revenues.

Nike said that worldwide fu-ture orders for athletic foot-wear and apparel, scheduledfor delivery between June andNovember 2003, total $4.9 bil-lion, or 4.4 percent higher thanlast year. At the end of the fis-cal year, global inventorieswere $1.5 billion, a rise of 10percent from a year ago.

For the year, income fell by29 percent to $474 million, or$1.77 a share, from $663.3 mil-lion, or $2.44, a year ago. Thedecline was due mostly to a one-time accounting charge. Exclud-ing the charge, income was$740.1 million, or $2.77 a share.Revenues rose 8.1 percent to$10.7 billion from $9.89 billion.

If not for the accountingcharge, last year would havebeen Nike’s most profitableever, a point made by Blair andNike chief executive PhilipKnight.

Nike Net Soars in FourthContinued from page 2postponing a decision in thiscase. And given the importanceof the First Amendment con-cerns at stake, there are strongreasons not to do so.”

Breyer noted that the wide-ranging group of companies andconcerns supporting Nike’s posi-tion with court briefs, includingorganized labor, 40 media com-panies and the American CivilLiberties Union, reflected “a fa-mous sentiment in the writing ofVoltaire: ‘I do not agree withwhat you say, but I will fight tothe end so that you may say it.’”

“A case that implicates thatprinciple,” Breyer wrote, “is acase that we should decide.”

Bruce Raynor, president ofapparel union UNITE, said,“They ought to have to standtrial on the facts that they havefalsely been saying they havebeen monitoring their factorieswhen they haven’t, they havefalsely been saying they paidworkers in China and Vietnam aliving wage when they haven’t,they have falsely been sayingthey guarantee freedom of asso-ciation when they don’t. Theyshould be made to stand trialwhen they make those claims. Ilook forward to the trial.”

Kasky, the activist, sued Nikeafter reading in the New YorkTimes about a leaked 1997 Ernst& Young audit, commissioned bythe company, which found em-ployees in a large Vietnam con-tractor were exposed to cancer-causing toulene and suffered ahigh rate of respiratory ail-ments. Kasky saw the audit ascontradicting Nike’s claims ofaddressing conditions at its con-tractors, and sued under statetruth-in-advertising rules.

However, a state trial courtjudge sided with Nike and dis-missed the case. Kasky ap-pealed, but a state appeals courtalso sided with the company.

Kasky appealed again to theCalifornia Supreme Court. Thatcourt rejected Nike’s FirstAmendment defense and or-dered the Kasky lawsuit to pro-ceed. In siding with Kasky, thestate justices drew no distinctionbetween a company’s rebuttal ofcritics and product advertising.

“Its intended audience wasprimarily the buyers of its prod-ucts,” the court’s majority con-cluded. Nike then appealed thecase to the U.S. Supreme Court.

Both sides found somethinggood to say about the high court,which after hearing argumentsin late April and reading stacksof briefs in the case, decided notto issue an opinion.

“We have some good languagein the opinion,” said Jim Carter,general counsel at Nike, in aconference call from the firm’sBeaverton, Ore., headquarters.The justices “are having real dif-ficulty calling this pure commer-cial speech…that is helpful to us[as the case proceeds].”

Marc Caplan, an attorney forKasky, said he is pleased thecase will finally go to trial.Caplan said, “Maybe the busi-ness community will wake upand realize that all corporationsshould be held to a high stan-dard of representing the truth toconsumers. If someone is speak-ing about how their product ismade and they’re speaking to acommercial audience for the

purpose of selling their product,what they say has to be true. It’sa simple test. It’s really not anearth-shattering concept.”

Meanwhile, the field of cor-porate communications andpublic relations awaits furtherlegal action that could ultimate-ly be precedent-setting. Somethink the outcome could have achilling effect on corporatespeech, making executives re-luctant to say anything that has-n’t been vetted by counsel andslowing down a company’s re-sponse to crises and public at-tacks. Others counter that mostexecutives will refuse to standstill and watch their brand andcorporate image take hits.

“Companies will be less apt tospring to an immediate defense,”said Howard Rubenstein, presi-dent of the public relations firmthat bears his name. “I thinkyou’ll find a rise in the crisis andlitigation defense fields. Publicrelations firms are going to insiston being held harmless with anycompany they deal with and theywill insist on the ceo signing offon what they do. The free-swing-ing defense of a company will besubdued and you might find thatanswers to any claims against acompany — sweatshop abuses,say — might not be done in atimely way. Even then, with thedelay, the image of a companywill be damaged.”

Eben Moglen, a professor oflaw at Columbia University,said: “The relationship betweencorporations like Nike and thepublic is essentially too complexto be addressed solely on thebasis of this, whatever thisturned out to be. Nike is a…21stcentury company. It doesn’tmake anything. Nike is solely animage. What Nike says is theonly thing Nike does. From their

point of view, how they talkabout themselves is the onlything they have and how societytalks back to them is the onlyway their value changes.”

Bob Liodice, president andceo of the Association of Nation-al Advertisers, said his group“and others in the business com-munity will now turn our focusto the proceedings in the statecourts to do everything we canto protect the First Amendmentrights of all commercial speak-ers. Companies should be freeto voice their opinions throughp.r. or advertising on major is-sues that impact their business.”

Bruce P. Keller, an attorneyrepresenting the Council ofPublic Relations Firms andother p.r. concerns who filed afriend-of-the-court brief sup-porting Nike, said that, with nodecision in the case, a chillingeffect will linger among corpo-rations about how to defendthemselves against critics with-out risking Kasky-like lawsuits.

However, Keller took solacein the court’s action because, inhis view it “didn’t, in any way,shape or form, endorse Kasky’sview.” He added, “Now we’rejust going to have to wait for thenext case to reach the SupremeCourt to get further guidance onjust how chilling lawsuits likeKasky’s will ultimately be.”

A Nike spokesman, in the con-ference call, said the companycontinues to be watchful aboutits public discourse in light ofthe case and last year decidednot to release its CorporateResponsibility Report. He said,“There is still a very open ques-tion whether we can go forwardand issue that report.”

— With contributions fromGreg Lindsay and

Scott Malone, New York

Nike Ruling by Supreme CourtMedia/Advertising

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“This case presents novel FirstAmendment questions becausethe speech at issue represents ablending of commercial speech,noncommercial speech and debateon an issue of public importance.”— John Paul Stevens, Supreme Court Justice

To the Editor:The purpose of this letter is to clarify

some of the statements that appeared inWWD’s article, “More Adventures inCirculation,” in the June 17 edition. In short,we at ABC have identified a potential con-cern and, thanks to the dedicated and dili-gent work of numerous members represent-ing magazine publishers, advertisers and ad-vertising agencies, we have moved quicklyand effectively to resolve it. The issue in-volves a misclassification that does not im-pact total paid circulation. Contrary to thestatement that appeared in your recent arti-cle, ABC’s audit staff — in the normal courseof conducting its audits — recently deter-mined that some ABC publisher membershad misclassified agent-generated “individu-ally addressed/sponsored” copies. Thesecopies (which are purchased by third par-ties, individually addressed and mailed todesignated recipients) have been erroneous-ly posted on subscription files as “individual-ly paid” subscriptions. According to ABCqualification rules, they should have beenclassified as “public place/sponsored” sales.

Again, these copies qualify as paid circu-lation. So why has ABC worked so closelywith members to resolve the issue? Becausewhen circulation in the “public place/spon-sored” category exceeds 5 percent of thetotal average paid circulation for the filingperiod, the average for that category must bedisclosed and explained in ABC reports.Misclassifying the circulation in questionmay impact the 5 percent threshold, andABC wants its members to have the most reli-able, accurate numbers possible.

To date, here’s what ABC and its membershave worked together to accomplish:

● We have intensified communicationswith our publisher members to make certainthat the relevant definitions and reportingparameters are clearly understood.

● Recognizing the potential for confusionbetween “individually addressed” and “indi-vidually paid,” as well as the possible un-availability of historical records, we have re-doubled our publisher training efforts toclarify definitions and address ongoing ques-tions and concerns firsthand.

● Where necessary, we are actively work-ing with our publisher members to audit atthe agent level.

● The ABC board of directors has givenpublishers the temporary option of exclud-ing “individually addressed/sponsored” sub-scriptions from calculations designed to de-termine disclosure. This option is limited tothe June 30, 2003 ABC Publisher Statementsand open audits through June 30, 2003 anddoes not affect other categories of “publicplace/sponsored” subscriptions.

● To reinforce the importance of accuratelydisclosing this category, effective with Dec. 31,2003 reports, “individually addressed/spon-sored” subscriptions will be a required report-ing category of “public place/sponsored” sub-scriptions. Should the “public place/sponsored”category exceed 5 percent of a publication’s cir-culation, this fact will be disclosed in the ex-planatory section of the ABC statement; should“public place/sponsored” exceed 10 percent,this circulation will be disclosed from copy onein paragraph 4B of the ABC statement.

For almost nine decades, ABC has been amember-driven organization made up of ded-icated publisher, advertiser and advertisingagency members. We encourage their collab-oration and share their concerns. And work-ing together, we will continue to uphold reli-able, verified circulation reporting for thebenefit of the entire print media industry.

Michael J. LaveryPresident and Managing DirectorAudit Bureau of Circulations

Editor’s Note: The preceding letter is in re-sponse to a WWD article on the misclassifica-tion of certain types of “public space/spon-sored” subscriptions within the magazine in-dustry as “individually paid” copies. Someconsider “individually paid” subscriptions asmore desirable than “public space/sponsored”copies that are generally found in such placesas doctors’ offices and beauty salons.

HOT PLATE: It’s not the 90-degree weatherthat’s making the magazine industry sweat.Publishers and circulation experts arereeling from what has been the worst periodin recent memory for newsstand sales, theone method of distribution that bringspublishers a direct source of revenue.

When the Audit Bureau of Circulationsreleases its semiannual report in August,sources said it will show drops at a widerange of categories, including the seeminglyindefatigable laddie sector and much of thewomen’s middle market.

One circulation expert, speaking oncondition of anonymity, said the drops wouldbe modest — between 5 and 10 percent,but others in circulation are calling thatoptimistic, and data samplings are showingmany monthly publications that were barelyflat through the first quarter found little reliefin the second, as consumers abandoned popculture-related magazines during the fourweeks the country was at war with Iraq.

For example, sales data at AndersonNews — which represents about 30 percentof the newsstand market — shows thatEsquire (which was showing more rapid gainsin the first quarter) was down double digits inMay, according to a source. Maxim, throughthe same survey, also was down significantlyin May, as were its two leading competitors.

“There is a general sense based oncompilations of industry numbers thatnewsstand sales are tracking down,” saidthe more optimistic source. “Part of it isairport sales, but it’s also just the lingeringimpact of the economy and the warstarting,” which the expert said haddiverted “everyone’s attention to TV.”

In the women’s fashion and beautysectors, publisher Valerie Salembier said twoweeks ago that Harper’s Bazaar would beup. “I’m afraid to say double digits, but it islikely to be anywhere from 6 to 10 percent.”

But the sector remains troubled. “In anera with a war and a tough economy, it’sgoing to hurt all of us in fashion and beautythis spring on newsstands,” said one women’smagazine publisher. — Jacob Bernstein

MTV WANTS ITS MAGAZINE, AGAIN: Havingdecided that its viewers do, in fact, read,

MTV is finally preparing to publish amagazine this fall, a year and a half after itsinitial attempt with partner HearstMagazines fell apart. Two sources said thenetwork will start small this fall with acouple of one-off issues themed to differentprograms on the channel. (Think AshtonKutcher and his trucker cap on the cover of“Punk’d the Magazine.”)

“They want to test the waters,” onesource said, “but they are actually very riskaverse and they want to do it as safely aspossible.” But if the newsstand tests catchfire, regular publication could start in 2004.

MTV has hired a small staff this timearound, based in its offices, including SamSchechner, former editor of the late Shoutmagazine. MTV did not return calls seekingcomment. Hearst could not be reached forcomment, although executive vice presidentMichael Clinton told Folio this spring thatthere was “nothing new to comment on.”

The first time around, in December2001, Hearst hired former Glamour deputyeditor Pamela Miller and current Spindesign director Arem Duplessis to work on aprototype, but released them after thecompany reached an impasse with MTVover creative differences. — Greg Lindsay

SLIDING OVER: One of EntertainmentWeekly’s most prized assets is heading forthe exits, but she’s staying at the company.On Thursday, fellow Time Inc. imprint InStyle said it had tapped EW’s assistantmanaging editor Maggie Murphy, where shewill be joining in the same capacity.

The move within the company followsmonths of rumors that Murphy was lookingto leave Entertainment Weekly. Murphy,who had been with the magazine since1993, had been responsible for the “newsand notes” section and was responsible fordirecting the magazine’s Power List and ItList issues. In the summer of 2002, shecampaigned for the top job at themagazine, but it went to Fortune assistantmanaging editor Rick Tetzeli. Murphy spenta significant portion of Tetzeli’s tenure onmaternity leave (she had a baby last fall),but upon her return, quickly seemedunhappy with some of the magazine’s newdevelopments, sources said.

In Style also said that it had promotededitorial production director Patrick Moffitt,who is moving up to an assistant managingeditor job. — J.B.

THE NEW ELLEGIRL: Amy Levin Cooper isheaded back to the office for the first timesince she was eased out of her editor’s chairat Mademoiselle more than a decade ago.Brandon Holley, a protégé of Cooper’s latehusband, the former GQ editor Art Cooper,has hired her to consult on the pacing andstructure of each issue. “She’s not going tolook at the content — she loves the voice ofthe magazine — but I’d love to have herlook at the board,” where each issue isassembled, Holley said.

Their collaboration arose after the pairpassed the hours poring over boundvolumes of Cooper’s tenure at Mademoisellein the days after her husband’s death.“Going through her bound volumes was soinspiring to me, and to tap into an expertlike that, who worked with [Condé Nasteditorial director Alexander] Liberman, isreally great,” Holley said. Whether Cooperwill assume a spot on the masthead has yetto be decided.

Cooper has been out of the industrysince Condé Nast replaced her in 1992with Gabé Doppelt, who, in turn, alienatedadvertisers and lasted only a year. Ellegirlpublisher Hachette Filipacchi U.S. has triedto position the magazine at the older end ofthe teen category, at about the point wherethe audience would make the leap toMademoiselle. — G.L.

WIZARD OF OZ: Karl Lagerfeld has beentapped to guest edit the Christmas issue ofAustralian Vogue — and his lineup is asimpressive as the country is remote. Heplans to feature Nicole Kidman in couture,Cate Blanchett channeling Coco Chanel,Linda Evangelista in sportif mode and a bevyof dark-haired beauties from the fashionworld for a “Parisian” story. Lagerfeld alsois profiling homegrown design superstarMarc Newson and enlisting his friend HediSlimane, designer of Dior Homme and abudding photographer, to documentAustralia’s surfing scene. Of course,Lagerfeld also plans to head Down Underfor the first time to attend the launch party.“I need a professional reason to gosomewhere,” he quipped. “I’m not atourist.” Meanwhile, closer to home,Lagerfeld just photographed luxury titanBernard Arnault, chairman of LVMH MoëtHennessy Louis Vuitton, for an upcomingissue of the French fashion magazine,Numero. — Miles Socha

MEMO PAD

By Jacob Bernstein

NEW YORK — Bonnie Fuller just can’t stay put.Late Thursday afternoon, Wenner Media executives ad-

mitted that Fuller was leaving Us Weekly. She is expected tobe named the editorial director of American Media. No re-placement for her at Us Weekly was named at press time,but a high-level source at Wenner indicated that the topchoice was executive editor Janice Min,who is currently on vacation.

At David Pecker’s American Media,Fuller is expected to be tapped to helpoversee three of the nation’s leadingtabloids — The Star, The Globe and TheNational Enquirer — at a time when theyhave been rapidly losing readers on thenewsstand. A large portion of her new job,however, will likely be focused on The Star,which is moving its base to New York.

Fuller had been editor in chief at UsWeekly for only 16 months but in that timethe title’s newsstand sales soared to morethan 500,000 from 300,000 as she reposi-tioned the magazine as a hip tabloid withreaderships among suburban supermarketshoppers and urban fashionistas lookingfor a good guilty pleasure.

Her departure came as a shock to thestaff at Us Weekly. There had been no real indication, oneWenner source said, that anything was the matter betweenher and the company’s president, Jann Wenner, or that shewas looking to leave. In fact, much of the staff was on vaca-tion on Thursday, and others heard about it from reporterscalling around at press time. Additionally, a report in TheNew York Post in February said that she had signed a three-year contract with the company.

But receiving a contract and signing it are two different

things, an executive from the company said, and onThursday afternoon, Fuller informed her bosses that shewas leaving the title. Behind closed doors, a source said,Wenner also had begun to offer more managerial input inrecent weeks.

But most people chalked it up to habit. Fuller came tothe United States from Canada in the late Eighties as theeditor of YM, left that position for Hearst in June 1994 to

edit Marie Claire, was promoted to the edi-torship of Cosmopolitan in January 1996,left for Glamour in August 1998 and wasfired from there in June 2001 after a nastyfeud with Vogue editor in chief AnnaWintour, and amidst rumors that she hadbeen angling to go back to Hearst as the ed-itor in chief of Harper’s Bazaar. Fuller hasrepeatedly denied those reports, though,saying that she had no intention of tryingto score the Bazaar job.

At 6 p.m. Thursday, Wenner took the UsWeekly staff still in the office into a confer-ence room and told them Fuller was leav-ing. According to a source, he attempted tomake light of the situation and said thatthe current double issue now on news-stands would make a transition somewhateasier. He also said he had no majorchanges planned for the magazine — other

than to make their work hours less onerous. But one sourcepresent said it seemed a bit out of touch, since their hoursunder Fuller had improved greatly in recent months.

“There was some relief,” said a source who was in the of-fice, “but a lot of people were just shocked and confused.And everyone was really upset Bonnie didn’t tell us herself.It was just like, ‘Huh?’”

Neither Fuller nor a spokesman for American Media re-turned calls for comment.

Fuller Leaves Us Weekly Letter to the Editor

WW

D, FRIDAY, JUNE 27, 200313

Bonnie

Fuller

Let retail decision makers understand how to market, merchandise,and position your brand to the generation known for their fickle

and fast changing minds, and the most material purchasing power.

August Beauty Biz The Teen Issue

A Special Section: What’s Hot for Back-to-School

Close: July 15

MajorImpact

• Bonus distribution to teen specialty stores.• Gift bag to teen magazine beauty editors.• What’s Hot for Back-to-School reprints with

WWD Sounds of Style issue to customers attop music stores in NY and LA.

For more information, call Sarah Murphy, Publisher WWD BeautyBiz, at 212/630-4656 or your WWD sales representative. WWDBEAUTYBIZ

ILLU

STRA

TION

BY

D. H

ORII

WWDBEAUTYBIZThe Teen Issue

WW

D, FRIDAY, JUNE 27, 200315

CREED & BONDFRAGRANCES

A world class globalfragrance company wheretalented people can build a

career with creativity,excellence, and passion.

We have immediateopenings for experienced:•Public Relations Associate

•National Account Executive•Business Managers

•Sales AssociatesFor consideration please

send resume andhandwritten cover letter to:

HR at: CREED, NYFax: 212-689-0554

Product Development/Marketing Assistant

NARS Cosmetics, prestige color andskincare line seeks marketing assis-tant for product development inskincare area. Skincare experienceprefered. Fax to 212-941-1034 or emailto salesresumes@narscosmetics.com

Bryant Pk Duplex 1100, 2000, 4500 FT.20 Ft Ceilings - Great Windows/Views

SoHo-Sublet Penthouse 2000 FTPrime Manhattan Jon 212-268-8043Search-www.manhattanoffices.com

For Space in Garment Center

Helmsley-Spear, Inc.212-880-0414

Showrooms & LoftsBWAY 7TH AVE SIDE STREETS

Great ’New’ Office Space AvailADAMS & CO. 212-679-5500

PATTERNS, SAMPLES,PRODUCTIONS

All lines,Any styles. Fine Fast Service.Call Sherry 212-719-0622.

PATTERNS/ SAMPLES PRODUCTIONS

Call (212) 268-9126

PATTERNS/SAMPLESPRODUCTION

Specializing in small productions. Sam-ples, duplicates, patterns. Full serviceshop to the trade. Fine fast work.

212-869-2699

FOR SALEVery profitable women’s and children’sclothing operation in Park Slope, Brooklyn

for sale! Please email indication ofinterest with name, address and phone

to: mwihb@hotmail.comPrincipals Only

RESUMES THAT WORK! SINCE 1970PROFESSIONAL RESUMES, INC.

60 E 42nd Street, NYC 10165(212)697-1282/(800)221-4425

www.resumesforfashion.com

Admin Since 1967

W-I-N-S-T-O-NAPPAREL STAFFING

DESIGN*SALES*MERCHADMIN*TECH*PRODUCTION

(212)557-5000 F: (212)986-8437

APPAREL STAFFINGAlan Wolf - Since 1971

*DESIGN*PRODUCTION**TECH DESIGN*GRAPHIC DESIGN*

*MERCHANDISING*See career listings @ www.apparelstaffing.com

of fax resume: 212-302-1161

ASSOC. DESIGNERTween Sportswear Co. seeks excellentversatile talented individual w/ min 4yrs. exp. for apparel design & alloverprint design. Must have knowledge ofIllustrator & Photoshop. Please faxresume to 212-221-7064, Attn: Cathy.

ASST TECH DESIGNERneeded to join fast paced import team.We are looking for recent graduatewith sweater knowledge or person 1-2yrs sweater exp with a very open mind.Candidate must be well versed in Ex-cel, have excellent written communica-tion skills & handle multi tasking tothe fullest. Exp in product packs &communication w/ overseas factories aplus. Pls. fax resume: 212-382-2549

BUSINESS PLANNER/FORECAST ANALYSTA great opportunity to work

in an enterprising and youngconsumer products company!

Responsibilities include forecasting,inventory planning, and sales datamanagement. Retail Link experience aplus. Forward resume to:

tspinelli@ariela-alpha.com

DESIGN ASSISTANTEst’d eveningwear co. seeks exp’dperson to assist head designer. Sketching,computer & organizational skills req’d.

Fax resume to: 212-730-6462

DESIGNERHandbags

International NYC based fashion Co.seeks motivated individual, with a

minimum 1 year experience, must bewell organized, self motivated and be

aware of all intl. fashion trends.Please fax resume to (212) 472-5021

DESIGNERMajor Children’s Outerwear Co. seekshighly creative, fast-paced Designerfor infants - 6X/7, w/minimum 3-4 yearsexperience in retail field. Candidateshould be self starter, motivated teamplayer able to spot trends, develop art-work & have good color sense w/freshideas. Must be proficient in Illustrator& Photoshop. Fax resume to Linda at:

212-997-7996

Director ofSourcing Strategy

The candidate must have a minimumof 7 yrs experience in sourcing multiplegarment types on a global basis andhave a technical understanding of thesupply chain. The candidate must in-teract professionally with multiple levelsof management and possess excellentdocumentation and communicationskills. The candidate must be capableof organizing and managing multipleprojects simultaneously on both a stra-tegic and task oriented basis. Interna-tional travel is required.

Please fax resume to: (212) 575-7477

Front Desk CoordinatorTracie Martyn

Part-time front-desk coordinator forbusy skincare salon. Great opportunityto join a growing company withamazing clients. Prior retail/spa experi-ence preferred. Weekends required.

Fax: 212-206-8399

GRAPHIC ARTISTLeeward International Inc., seeks expe-rienced artist for licensed characterchildren & Jr. sleepwear. Must be profi-cient in Photoshop & Illustrator.E-mail resume to:go@leewardinc.com

or Fax : 212-869-3938

INVENTORYSPECIALIST

High-end co. seeks experienced com-puter savvy individual to work with allaspects of inventory. Fax resume to:212-244-5136.

BRAND MANAGERSNEW YORK LOCATION

Due to continuing growth, AUTHENTIC FITNESS CORPORATION, apremier manufacturer of brand swimwear, is now searching for BrandManagers for our NEW YORK showroom.

Reporting to the VP of Sales, the selected candidates will be productfocused (swimwear experience desirable), excellent presentation skills,retail expert with assortment plans, selling analysis and systemsknowledge. Must have min. 5 yrs. retail or wholesale experience workingwith department stores.

We offer a competitive benefit and salary package. Candidates meetingthe requirements for the position should submit resume with salaryhistory to:

AUTHENTIC FITNESS CORP.6040 Bandini Blvd., Los Angeles, CA 90040;

email: mmeyers@AuthenticFitness.comor fax: 323-837-6188

VICE PRESIDENTWORLDWIDE PLANNING

A $500 million branded apparel company, located in SOUTHERN CA,seeks a V.P. for worldwide planning who is expert in all facets ofproduction planning on a global basis, to insure factories are loaded in aprofitable, cost effective manner. The selected professional will manageon-shelf needs with production status flow between designmerchandising, manufacturing, and customer service.

We require a detail oriented individual with heavy experience in rawmaterial and package purchasing. Requires systems planning knowledgethrough MRP/ACS. Candidate must have Bachelor s Degree or 10 yrs.experience in apparel production planning, purchasing or sourcing.

Interested candidates should submit their resume and salary history to:Confidential Relpy Service, P.O. Box 55002, Dept. 06LA134,

Sherman Oaks, CA 91413;or email to: ijohnston@hrads.com

(MUST PUT VP/06LA134 ON SUBJECT TO BE CONSIDERED FOR THIS POSITION)

PROJECT MANAGER - LOS ANGELESSICK OF THE RETAIL ENVIRONMENT?

TIRED OF THE RUTHLESS "FASHION" INDUSTRY?This is your opportunity to escape from the grueling world of fashion retailand still keep up with the latest trends! Ma Cher, the leader in custompromotional cosmetic bags, handbags and accessories, is looking for acreative, energetic and resourceful "Project Manager." We are looking for adetail oriented person to assist in the design of our custom items, as wellas oversee the sourcing and production of each project. Experience withoverseas production preferred. Check out www.macher.com.

Come join a team where hard work is both fun and rewarding!Fax/E-mail your resume w/ cover letter & salary history to:

(310) 581-5223 resume@macher.com

Personal/Admin. Asst. F/TTo support President/Creative Dir. ofcosmetic co. Duties include scheduling,assisting in daily tasks, coordinatingtravel arrangements, handling personalmatters, liaising with the rest of the co.Must be detail oriented with excellentorganizational and communicationskills, computer literate. Fluency inFrench necessary. Min. 2 yrs. exp. infashion/cosmetics or similar position.Send resume to Fax: (646) 613-9043 orassistantresume@narscosmetics.com

No Calls Please

PUBLIC RELATIONS REPPlan and conduct PR programs to ex-pand apparel brand awareness in Ital-ian and South American markets. Pre-pare media releases. Purchase advertis-ing. F/T exp req’d.Send resume to: Human Resources Dept.,

Harve Benard Ltd. 205 W. 39th St., 6th Fl. NY,NY 10018

SHIPPING CLERKLadies Garment Co seeks shippingclerk. Liaison between agents, brok-ers, truckers and warehouse. Profi-cient in Excel. Fluent in English /Chinese A+. Must have experienceand work permit. Good pay & benefits. Fax resume + salary requirement to:

212-730-5159

VP SALESYoung women’s company seeks V.P.Sales for designer casual/active sports-wear. Must have major store sellingexperience, understand merchandising,and design. Great opportunity foraggressive self-motivator. Send resume inconfidence to: Rina at 212-594-3165

Aggressive Sales ProWell known NYC children’s swimwear& sweater co seeks exp salespersonwith current buyer relationships withdept & chain stores, who can deliversales. Fax resume to: 800-472-0790.

RETAIL SALESExperienced sales associate wantedfor designer specialty store in Essex

County N.J. Major growth potential.Please fax resume to (212) 766-9817

SALES ASSOCIATEP/T, F/T Sales Associate with outgoingpersonality for upscale Madison Ave-nue store. Must be energetic, wellgroomed and computer literate. Bilin-gual preferred. Please fax resume to:

Manrico Cashmere: 212-794-8515

SALES EXECUTIVESeeking outgoing personality for costumeand sterl sliver jewelry Showroom andshows, friendly env. Good potential.

Tel: 212-779-2890, fax 212-779-2979

Sales RepresentativeNeeded for busy Brooklyn textile silkscreen printing company. For more

information, please call Watermark at:(718) 369-7195

TEXTILE DESIGN SALESCareer opportunity with expandingand sucessful design agency. Benefitpackage + salary/commission based onexperience. Email: design@ukny.com

West Coast Sales AgentL.A. BASED

Fornarina, a cutting edge Italian apparel& shoe co. seeks a personable, detailoriented individual w/min. 3 years exp.working w/fashion forward, contempo-rary lines. Responsible for servicing ex-isting accounts while developing newclient base. Travel necessary! Excellentcomputer skills req’d. E-mail resume:human.resources@fornariusa.com

***APPAREL EMPLOYERS ***Do you need exp’d DESIGNERS, PRODUC-

TION, ACCOUNTING, TECHNICAL etc. staff?**CALL 973-564-9236 Jaral Fashion Agcy.**

A N O T E O F I N F O R M AT I O N A N D E N T R E AT Y T O FA S H I O N E D I T O R S , A D V E R T I S E R S ,

C O P Y W R I T E R S A N D O T H E R W E L L - I N T E N T I O N E D M I S - U S E R S O F

O U R D N A M E .

D was a designer, an extraordinary woman who made

a timeless contribution to fashion.

D is a perfume.

D is modern elegance in couture, ready-to-wear,

accessories, watches and fine jewelry.

D is our registered trademark for fragrance, cosmetics,

clothing, accessories and other lovely things.

Although our style is justly famous, a jacket is not ‘a CHANEL jacket’ unless it isours, and somebody else’s cardigans are not ‘CHANEL for now.’

And even if we are flattered by such tributes to our fame as ‘Chanel-issime,Chanel-ed, Chanels and Chanel-ized’, PLEASE DON’T. Our lawyers positivelydetest them.

We take our trademark seriously.

Merci,

D, Inc.