WWDFRIDAY, AUGUST 5, 2011 ■ $3.00 ■ WOMEN’S WEAR DAILY

IN WWD TODAY

Keith Urban’s new men’s scent Phoenix, coming in September, has a lot to do with his own life story. In an exclusive interview, the country star talks about his family — including his wife, Nicole Kidman; the minutiae of fragrance science, and how one day he might even launch his own clothing line. For more on the fragrance and Urban’s future, see pages 4 and 5.

PHOTO BY JOHN AQUINO; STYLED BY TYLER RESTY

PLUS: Marcia Kilgore’s

Soap & Glory heads to Sephora.

PAGE 8

Urban Cowboy

Summer ’ScapesWhere glossy magazine editors

go to get away from it all. PAGE 9

By ALEXANDRA STEIGRAD

GET READY FOR A BUMPY RIDE.Worries that the global economy is faltering and

reports of slower same-store sales growth in July pushed retail stocks to their worst drop since January 2009 and sent the Dow Jones Industrial Average swooning by more than 500 points Thursday.

And no sector is safe. Even the high-fl ying luxury sector — where Saks Inc.’s comparable-store sales gained 15.6 percent last month, Neiman Marcus Inc.’s rose 7.7 percent and Nordstrom Inc.’s gained 6.6 per-cent — might take a hit as well-heeled shoppers check their brokerage accounts.

In all, it was a troubling day and reminiscent of the fi nancial crisis of 2008 with its wild swings in trading. The S&P Retail Index fell 4.5 percent, or 23.04 points, to 492.68; and the Dow dropped 4.3 percent, or 512.76 points, to 11,383.68. Nor was the black day restricted to the U.S.: The CAC 40 lost 3.9 percent in Paris and the FTSE 100 dropped 3.2 percent in London.

Ken Goldstein, an economist at The Conference Board, pinned the sharp downward pressure on a host of investor fears surrounding today’s key update on the U.S. employment picture in July, the impact of Washington’s new defi cit reduction package and the fi scal woes of Spain and Italy.

“Beyond all of that is the sobering idea that auster-ity doesn’t help growth,” Goldstein said, referring to government efforts to trim spending.

Almost without exception retail and fashion stocks fell Thursday.

Among the hardest hit retailers was Aéropostale Inc., which warned that its second-quarter bottom line would come in well below expectations and as a re-sult saw its stock fall 24.2 percent to $12.53. Other de-cliners included Gap Inc., down 11.6 percent to $16.98;

NOTHING BUT RED

Retail Stocks DiveOn Economic Fears

SEE PAGE 3

� Barneys’ Facelift PAGE 2RETAIL: Barneys New York has begun a makeover of some of its fl oors, which will include the addition of a new cafe.

Armani to Unveil Online Store PAGE 2FINANCIAL: Yoox revealed it will launch an Armani online store this fall as the e-commerce group reported lower profi ts in the second quarter.

Adidas Predicts Record Sales PAGE 12ACTIVEWEAR: A strong second quarter caused the activewear company to raise guidance for the third time as it saw growth in China and North America.

By SHARON EDELSON

NEW YORK — Shoppers on Saturday will get the first glimpse of the redesign of Barneys New York’s Madison Avenue flagship, but it will be months before chief ex-ecutive Mark Lee’s vision for the store comes into focus.

The scaffolding surrounding a section of the main fl oor will come down on Saturday to reveal new gray marble fl oors, American oak fi xtures, new lighting and ceiling details. A section of the fl oor near Madison Avenue and 62nd Street will be unveiled in mid-Sep-tember. Construction on the main fl oor will then be put on hold until after Christmas.

In the interim, Barneys will tackle the eighth fl oor, combin-ing the men’s and women’s Co-Ops and opening a cafe by mid-October. The cafe, which will be called Gene’s, in honor of Gene Pressman, Barneys’ former chief executive offi cer, will have some innovative digital elements and food by Mark Straussman, the chef behind Fred’s restaurant on the fi rst fl oor.

“It’s nice,” Pressman said of the cafe. “They asked me if I minded if they name the restaurant after me. I said, ‘knock yourself out.’ I don’t have any creative input in the store and I have no interest in having creative input.” Asked whether he’ll eat at Gene’s, Pressman said, “Yeah, why not. I’m sure I will.”

Barneys hired Yabu Pushelberg, a Toronto-based architecture fi rm, to collaborate with Lee and creative director Dennis Freedman on the store’s re-design.

The project includes overhauling the fi fth to eighth fl oors and Chelsea Passage as well as other areas of the store.

“Mark Lee is truly trying to change the company,” said

a retail expert who is a close Barneys observer. “There’s this big investment in the image of the company that wasn’t happening before because of the recession and a lack of leadership. Mark has ben able to get money to in-vest in the company [from parent Istithmar].”

Istithmar World, the investment arm of the state-con-trolled holding company Dubai World investment fund, bought Barneys in 2007 from Jones Apparel Group Inc. for $942 million, and has since pumped millions into the stores. The retailer’s valuation declined sharply in the recession and it accrued signifi cant long-term debt. “Mark wants to evolve [Barneys] and he should evolve

it. The fact is that he’s evolving and pushing and investing,” the source said.

Already evident is a certain graphic quality seen in adver-tising, a high-brow approach to windows and a beefed-up special events schedule. “We’ve done more events in the last six months than in all of the last three years,” said a staffer, citing the launches of L’Wren Scott’s handbag collec-tion and an upcoming event for Patti Hansen’s Hung on U collection.

Barneys’ Madison Avenue fl agship opened in September 1993 amid cost over-runs attributed to Pressman’s insistence on featur-ing the work of interior designers such as Andrée Putman, elaborate mosaics and 40 different types of wood in the original construction. Given the com-pany’s fi nancial troubles in the Nineties, subsequent rescue and changes in ownership, the store has not had a major makeover since it opened.

“It lasted a long time,” Pressman said of the Peter Marino-designed store. “If they’re going to rip it all out, that’s their prerogative. It wasn’t done to be trendy; it was done so that it would last.”

■ EYE: See more pictures from Betsey Johnson’s Plaza tea party and Versace’s Beijing cocktail party at WWD.com/eye.■ MARKETS: See looks from Gerry Weber’s new collection at WWD.com/markets-news. ■ BUSINESS: See more fi nancial news and daily stock movements at WWD.com/business-news.■ ONLINE THIS WEEKEND: Story of the Week

Barneys’ Flagship Getting a FaceliftWWD FRIDAY, AUGUST 5, 20112

CORRECTIONS

Photo captions on page 10, Tuesday, misidentifi ed Bon Appétit editor Adam Rapoport and New York Times Magazine editor Hugo Lindgren.

Dita Von Teese will launch her fi rst fragrance in Germany. This was incorrect in a Fashion Scoop on page 11, July 29.

TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS FIRSTNAME.LASTNAME@FAIRCHILDPUB.COM, USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2011 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.VOLUME 202, NO. 25. FRIDAY, AUGUST 5, 2011. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, November and December, two additional issues in February, March, April and August and three additional issues in September and October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Offi cer; Robert A. Sauerberg Jr., President; John W. Bellando, Chief Operating Offi cer & Chief Financial Offi cer; Jill Bright, Chief Administrative Offi cer. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Offi ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfi ed with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For reprints of articles, please contact Scoop ReprintSource at 800-767-3263 or via e-mail at sales@scoopreprintsource.com. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Group magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

DAILY QUOTE

PHOT

O BY

STE

VE E

ICHN

ER

Weak got weaker and strong took share.

— JANNEY CAPITAL MARKETS’ ADRIENNE TENNANT ON JULY SAME-STORE SALES. PAGE ONE.

TODAY ON WWD.COM

The Betsey Johnson-designed

Eloise suite at The Plaza

hotel.

FINANCIAL 1,2,3,7,12RETAIL 2,11BEAUTY MASS 4,5

BEAUTY MARKETPLACE 6BEAUTY CLASS 8MEDIA 9,10

SECTORS IN THIS ISSUE

LONDON — Adding to the gloom among consumers and markets on both sides of the Atlantic, Unilever’s bosses said Thursday the economic recovery in devel-oped markets will be “long and drawn out,” and that the growth story belonged to emerging markets.

Chief executive Paul Polman and chief fi nancial of-fi cer Jean Marc Huet said in a 90-minute conference call Thursday the consumer outlook for developed countries was bleak.

“In many European countries and in North America, the austerity cuts will impact for years to come,” said Polman. “There will be a long and drawn-out recovery in developed markets. Fortunately, in the emerging markets, the growth is more robust.”

Earlier in the day, the owner of brands including Dove, Vaseline and Alberto Culver reported an 8.9 percent rise in profi ts to 2.41 billion euros, or $3.44 billion, in the six months to June 30.

Turnover in the period rose 4.1 percent to 22.79 billion euros, or $32.59 billion, fueled by growth in emerging markets, new acquisitions, including the American hair care brand Alberto Culver, and price hikes in the second quarter.

All fi gures have been converted at average ex-

change rates for the six-month period.Despite a strong second-quarter performance in

Western Europe, Unilever said market conditions re-main “sluggish” in the developed countries and the West in particular remains challenging. Sales volumes in the region were broadly stable, and got a boost from the late Easter.

In North America, underlying sales growth was “low single-digit” in the half-year, refl ecting the impact of price increases and competitive dynamics, the com-pany said. Meanwhile, China and India both delivered double-digit underlying sales growth, driven by strong volume growth. The company said Southeast Asia also delivered “broad-based strong growth” in the period.

Unilever said the integration of Alberto Culver — whose purchase was completed in May — was “pro-gressing rapidly,” and that it had added 104 million euros, or $148.7 million, to turnover in the six-month period, and a loss of 8 million euros, or $11.4 million, to the fi rst-half bottom line.

Unilever added that the earthquake and tsunami in Japan earlier this year caused “serious disruption” to the local personal care business, but that the brands were coming “back on stream.” — SAMANTHA CONTI

By GORDON SORLINI

MILAN — Giorgio Armani will launch an online store in the second half in partnership with Yoox Group.

The store, armani.com, will offer collections from Giorgio Armani, Armani Collezioni, Armani Jr., Armani Jeans, EA7 and Emporio Armani. Yoox already manages the Emporio Armani online store. The new site will be available initially in Europe, the U.S., Japan and China. The deal between Yoox and Giorgio Armani SpA will run for fi ve years, to Aug. 30, 2016.

Federico Marchetti, Yoox’s chairman and founder, pre-dicted the Armani shop will be “the biggest online store Yoox will operate.”

Yoox revealed the upcoming store as it reported a slight drop in net profi ts in the second quarter to 1.3 mil-lion euros, or $1.9 million, as higher depreciation and amortization costs for new investments in technology and offi ces weighed on the bottom line.

Yoox said con-solidated net revenues in the three months to the end of June rose 33 percent to 61.5 million euros, or $88.6 million, boosted by contin-ued strong growth

in sales from both the yoox.com site and the 27 monobrand sites run by the e-commerce group. At constant exchange, sales rose 37 percent.

Dollar fi gures are converted at average exchange rates for the periods to which they refer.

Yoox earnings before interest, taxes, depreciation and amortization (EBITDA) in the period came in at 3.6 million euros, or $5.2 million, up 22.2 percent on the 2.9 million euros, $4.2 million, in the second quarter of 2010, with a margin on net revenues of 5.8 per cent.

Revenues in the fi rst half of the year increased 35.9 percent, reaching 131.2 million euros, or $188.9 million, driven by strength in the multibrand business line, which accounted for 97.8 million euros, or $140.8 million, in sales. The strong performance, company management said on a conference call, was attributable to “the outstanding perfor-mance of thecorner.com, which continues to post higher re-sults than expected, and to the strong growth of yoox.com.”

The monobrand business line, which includes the setup and management of online stores for brands also put in a strong showing in the fi rst half, with revenues gaining 47 percent to 33.4 million euros, $48.1 million, thanks to the “strong performance of the 23 online stores and new ad-ditions like brunellocucinelli.com and bikkembergs.com.”

In the statement, Yoox gave an upbeat outlook for the rest of the year, saying that “in light of the positive per-formance of the online retail and luxury goods market and the results achieved by the group in the fi rst half, it can reasonably be assumed that the group will continue to increase its net revenues and profi tability during the remaining months of 2011.”

However, some challenges were pointed out, notably the impact of the strengthening dollar. On the conference call, company management said the dollar was likely to play against Yoox, “much as it did in the fi rst half of the year.”

INTERNET

Yoox to Launch Armani Online Store This Year

Unilever Net Up; Eyes Emerging Markets

of the last three years,” said a staffer, citing the launches of L’Wren Scott’s handbag collec-tion and an upcoming event for Patti Hansen’s Hung on U

Barneys’ Madison Avenue fl agship opened in September 1993 amid cost over-runs attributed to Pressman’s insistence on featur-ing the work of interior designers such as Andrée Putman, elaborate mosaics and 40 different types of wood in the original construction. Given the com-pany’s fi nancial troubles in the Nineties, subsequent rescue and changes in ownership, the store has not

lion euros, or $1.9 million, as higher depreciation and amortization costs for new investments in technology and offi ces weighed on the bottom line.

in sales from both the yoox.com site and the 27 monobrand sites run by the e-commerce group. At constant exchange,

$1.9MYOOX SECOND-QUARTER PROFIT.

Barneys watchers said the retailers in moving in a high brow direction, evident in its windows.

WWD.COMWWD FRIDAY, AUGUST 5, 2011 3

Nordstrom Inc., 9.6 percent to $43.15; Kohl’s Corp., 8 per-cent to $47.67; Saks Inc., 6.4 percent to $9.47; Macy’s Inc., 6.1 percent to $26.13; J.C. Penney Co. Inc., 5.8 percent to $28.67, and Target Corp., 3.9 percent to $76.47.

The stock declines might be a bad omen of sorts for the back-to-school and fall selling seasons.

Retail experts predicted that the combination of high gas prices, currency fluctuations, high unemployment and rising apparel prices could lead to a fiercely competitive retail environment marked by unplanned promotions.

“If the consumer falls into a funk, I think you’re going to see unplanned promotions to drive traffic,” said Citi broadlines analyst Deborah Weinswig. “Continued volatility in the market could depress demand for back-to-school and holiday — absolutely.”

Weinswig said the luxury sector, which has been fair-ly insulated from cost inflation, could also slow should stocks continue to fluctuate.

In order to drum up demand in the last few months, retailers have dangled promotions and deals in front of consumers, but they might have to do even more to en-tice shoppers this fall if current trends persist.

“If the slowdown continues into August, this will cause even more concern and will likely result in deep-er promotions,” said Joel Bines, managing director in Alix Partners’ global retail practice. “The universal feeling out there is that it’s really bad.”

On the surface, Thursday’s sales results were rela-tively rosy. Comps rose by 4.6 percent overall, according to the International Council of Shopping Centers.

“July sales results came in better than expected for a seventh-consecutive month but clearly decelerated from the robust 7.2 percent gain racked up in June,” said Ken Perkins, president of Retail Metrics.

July marked the 23rd consecutive month of comp gains, he said.

Consumers took advantage of summer clearance early in July, but they held back toward the end of the month as the deal to cut the deficit and raise the debt ceiling dragged on and high gas prices lessened the willingness to spend.

The Gap Inc., which posted a 5 percent decline in comps and decreases in its four business units, is al-ready feeling that pullback in spending. The Gap brand’s comps in North America fell 6 percent, while Banana Republic was off 4 percent and Old Navy slid 3 percent.

Morgan Stanley specialty retail analyst Kimberly Greenberger said Gap’s “merchandise is worse than it was in the past” and expects the chain to go into clear-ance mode, as it is already overinventoried.

Greenberger said the fashions at the firm’s Old Navy divi-sion looked “terrific,” but the brand’s core customer is “re-ally suffering” and that the Banana Republic chain needs to add some fashion excitement to justify its higher prices.

Kohl’s Corp. also had a tough month, with a 4.6 per-cent comp decline that analysts pinned on a lack of fashion newness.

Gap, Kohl’s and Destination Maternity Corp., with a 6.3 percent decline, posted the largest comp decreases for the month.

Generally, upscale retailers continued to thrive while midtier chains held their own and budget-minded concepts gained ground.

“Weak got weaker and strong took share,” said Adrienne Tennant, an analyst at Janney Capital Markets.

“Some of these retailers will really have to rethink their relevance,” said Laura Gurski, head of the retail practice at A.T. Kearney. “Retail is all about being relevant to your core consumer group. If you’ve lost that cus-tomer, you either move with them or you re-invent yourself.”

— With contributions from Evan clark

{Continued from page one}

July Same-Store SaleS July2011 July2010 June May %Change %Change %Change %Change

DePaRTMenTSTOReS

Bon-Ton -1.6 -0.3 -0.9 -2.3

DillarD’s 9.0 -3.0 6.0 2.0

J.C.Penney 3.3 -0.6 2.0 -1.0

Kohl’s -4.6 4.1 7.5 0.8

MaCy’s 5.0 7.3 6.7 7.4

neiManMarCus 7.7 12.3 12.5 12.0

norDsTroM 6.6 7.6 7.9 7.4

saKs 15.6 6.4 11.9 20.2

sTagesTores 0.8 -0.6 1.8 0.0

aveRage: 4.6 3.7 6.2 5.2

SPeCIalTyChaInS

BananarePuBliC -4.0 2.0 3.0 -6.0

BaTh&BoDyWorKs 2.0 15.0 5.0 4.0

BuCKle 6.8 -9.3 10.8 8.8

CaTo -3.0 2.0 1.0 -3.0

DesTinaTionMaTerniTy -6.3 1.4 -0.7 -6.9

gaP(u.s.sTores) -6.0 -6.0 -1.0 -4.0

hoTToPiC 7.3 -9.0 0.4 0.4

olDnavy -3.0 6.0 2.0 -1.0

riTeaiD 1.9 -1.1 1.8 1.3

viCToria’sseCreT 9.0 12.0 17.0 8.0

Walgreen 2.7 0.4 4.8 5.6

WeTseal 7.4 -4.3 7.3 2.9

ZuMieZ 4.9 9.4 9.8 7.8

aveRage: 1.5 1.4 4.7 1.4

MaSSMeRChanTS BJ’sWholesaleCluB* 5.4 1.9 3.5 3.0

CosTCo* 5.0 4.0 8.0 7.0

rosssTores 7.0 2.0 5.0 4.0

sTeinMarT -2.8 -2.6 -1.5 0.7

TargeT 4.1 2.0 4.5 2.8

TJXCos. 4.0 2.0 5.0 2.0

aveRage: 3.8 1.6 4.1 3.3

Tally:

uP 20 18 24 20

FlaT 0 0 0 1

DoWn 8 10 4 7

TOTal 28 28 28 28

� SOURCE:�COMPANY�REPORTS���*ExClUdES�fUEl�SAlES

financial

Retail Stocks React to Slow July Comp Growth

ON THE MONEY: July’s same-store sales results weren’t strong enough to stop Wall Street’s slide Thursday, but they were hardly a disappointment. In fact, the Thomson Reuters SSS Index landed with a 4.4 percent increase, exactly as projected, with discounters, registering a 7.1 percent jump versus a 6.2 percent estimate, the strongest sector. Teen retailers surpassed expectations — up 6.8 percent versus the 5 percent expected — and apparel retailers trailed estimates just slightly (1.9 percent versus 2.2 percent) and were up when figures from the stumbling Gap were excluded (4.6 percent versus a 3.4 percent projection).

LIMITS OF LUXE: Unity Marketing’s forward-looking Luxury Consumption Index might have recently shown a steep drop in the sentiments of the affluent, but it didn’t make a dent on upscale retailers’ July results. In fact, Saks Inc., with a 15.6 percent comp gain,

registered both the best overall number and the biggest upside surprise of the month. (Projections were for a 8.5 percent hike.) Nordstrom was up 6.6 percent versus an expected 5.8 percent upward swing and Neiman Marcus Inc., privately held and not endowed with an estimate, moved up 7.7 percent.

MIDTIER MUDDLE: J.C. Penney Co. Inc. was a point better than expected, up 3.3 percent, but Kohl’s Corp. proved the month’s biggest disappointment — down 4.6 percent versus expectations of 3.4 percent gain — and a distinct drag on the department store sector. While Penney’s beat its chest about the strength of its Liz Claiborne and Sephora initiatives, Kohl’s chief executive Kevin Mansell called July “disappointing” after a strong June performance and offered this nugget about second-half inflation: “Early indications of customer reaction to higher apparel prices are in line with our expectations in terms of unit demand.”

— arnolD J. karr

julY comp crux

For stock chart and more Financial news, see

WWD.com/business-news.aéropostale saw its stock

drop more than 24 percent.

saks’ shares

dropped 6.4 percent

despite a 15.6

percent comp gain.

’’4 WWD FRIDAY, AUGUST 5, 2011

’’

beauty

By Julie NaughtoN

Keith urbaN has four grammys, 10 albums and an armful of Country Music association and academy of Country Music awards under his belt. Now there’s Phoenix, his new men’s scent set to launch in September.

“Who’d have thought i’d be calling Women’s Wear Daily at any point in my life?” said urban, 43, at the begin-ning of an exclusive phone interview from the Nashville home he shares with his wife and fellow aussie Nicole Kidman and their two young daugh-ters, Sunday rose, three, and Faith Margaret, seven-and-a-half months.

the name of his fragrance clearly references urban’s past, present and future, and is also a nod to the hopi indian thunderbird tattoo on his left forearm, one of four visible tattoos urban has. “the thunderbird obvi-ously has close ties to the phoenix — the symbolism of the phoenix,” said urban. “i’ve always loved symbolism and mythology, the symbolism of the phoenix being something that suc-cumbs to the challenges and burns in the fire, but then is resurrected from the ashes and rises up from the ashes even stronger than before. the ‘what doesn’t kill you makes you stronger’ story of the phoenix is something else that i think fits really well with a man’s cologne. Certainly, i can relate very strongly to that — going through hard times and coming out the other end of it much, much stronger for the experience.”

urban has never shied away from discussing addictions in his past, which he has said included cocaine and alcohol — nor has he failed to credit who helped him get and re-main sober after several attempts: his wife, Kidman. urban calls Kidman and their daughters the center of his world. touring, he notes, requires “an enormous amount of energy —physi-cally, mentally, emotionally. i’m very blessed to have such a great home life and family. i can come back here and fill up my well, and it’s full by the time i hit the road again,” he said.

urban is currently on the 50-city-plus get Closer 2011 tour, and once it’s over plans to get in plenty of family time before turning his atten-tion to the next project. “the way in which my wife and i tend to do things is we try to thread it all together,” he said. “We don’t think in terms of ‘Well, we’re going to work really hard for six months and then take three off.’ life is so unpredictable. We try to do some work, then have some family time, then do some work, then do more fam-ily time. We try and thread our sum-mers like that as well. When the tour finishes, that’s always sort of a bitter-sweet moment; it’s kind of sad to see the end of a tour when it takes so long to put them together. but then the de-compression that happens after is an amazing feeling. it’s quite euphoric. and i get to devote all my time to my family. even being sleepless, there’s a different sort of [mind-set] — it’s not irritating to be sleepless with these two little girls. i can be physi-cally quite tired, but still have this gratitude and euphoric glow about the way i feel about life now. and it never used to be that way before i had a family.”

urban also points out that the Phoenix moniker allowed him to

avoid naming the fragrance directly after himself. “the last thing i want to make a man do is: When someone asks him what he’s wearing is for that poor man to say, ‘i’m wearing Keith urban,’” he said. “that just seems really awk-ward to me. i wanted to allow a man the dignity to respond with something that is a little more appropriate. Not too hoity-toity, not too chic and metro, something that’s got a nice, masculine simplicity to it. i felt Phoenix fit that really well.”

Deciding to do a fragrance was an easy decision, said urban, given his lifelong affinity for scents. before cre-ating his own, urban said his tastes “ran the gamut.”

“i wore brut, and then i wore Calvin Klein escape for Men for a long time,” he said. “More recently, it’s been a lot of the tom Ford scents, as well as Dolce & gabbana and Dior fragrances.”

While he admits that his tastes run toward luxury scents, urban was de-termined to create a fragrance that would be both affordable and acces-sible to his fans. “i grew up with a lot of aM radio in the late Seventies — FM didn’t come to australia until the early eighties,” he said. “i think that it cre-ated a commerciality in me, about the way in which i make music and create. i’m interested in things that have more appeal than to just a couple of people. i think to go from that in the songwriting process wasn’t much of a stretch in the cologne area.”

urban chose boom llC — an 11-year-old company that develops custom brands for the fragrance, bath, color, cosmetics and skin care catego-ries for clients such as abercrombie & Fitch — as his licensee because of their willingness to “allow me to cre-ate it from the ground up,” he said, explaining how he began the creative process by first bringing things he loved to boom and then to international Flavors & Fragrances inc. to start put-ting together all the notes he liked. leathery notes were his favorites. his firm ideas didn’t go unnoticed by boom: “Keith had a real vision about how he wanted to put his name out there from the very beginning,” said rebecca Killian, executive vice president of boom llC.

the development process was a revelation, he said. “the colognes that i gravitate toward have a masculin-ity to them, but there’s a sensual side too,” said urban. “i don’t like the word unisex, because that’s not what this fragrance is, but there are elements of that softer side. it’s not too rugged and not too soft — it’s somewhere in the middle ground. and i wanted to make sure that the scent would have longev-ity in the course of a day. everybody’s skin is different, so that was one of those learning curves for me, as was me saying ‘i want this, and i want that,’ and them saying, ‘this is the actual-ity of that specific thing.’ it was like someone who’s never made a record before. theoretically, you get what it takes to go into the studio and make a record. but the actual process can be very different.”

the leathery gourmand juice, which urban created with iFF’s loc Dong, has top notes of blackber-ries, cognac and plum suede accord; a heart of dates, dark chocolate, fir balsam and musk, and a drydown of cashmere woods, tonka and amber gourmand, which imparts a hint of

Keith Urban’s Phoenix Rises

The ‘what doesn’t kill you makes you stronger’ story of the phoenix is something else that I think fits really well

with a man’s cologne. Certainly, I can relate very strongly to that — going through hard times and coming out the other end of it much, much stronger for the experience.

Keith Urban

backstage on tour.

’’ WWD.COM5WWD FRIDAY, AUGUST 5, 2011

’’leather. The heavy glass bottle has vertical lines intend-ed to represent guitar strings along the back, with an etched phoenix on the front and a weighted cap with a brown leather accent. The outer carton is of leather-tex-tured paper with an embossed phoenix. Cologne sprays in three sizes — 1 oz. for $24, 1.7 oz. for $35 and 3.4 oz. for $48 — will be sold.

In total, the scent will be sold in about 7,000 doors globally, including mass market doors in the U.S., at

Shoppers Drug Mart in Canada and at David Jones and Target in Australia. In most markets, the scent will be launched in mid-September. While Urban and Killian declined to discuss sales projections, industry sources estimated that Phoenix could do upward of $10 million at retail in its first year on counter.

Urban is promoting the fragrance at his shows by scenting the concert venues and distributing scented tattoos. He admits he wasn’t initially sold on the idea. “Boom presented all these ways of which we could issue samples at the concerts and I got a little cringed with that,” said Urban. “I stand on the corner of art and commerce, as a lot of artists do — and sometimes I feel like situations want to push you further up into the commerce avenue, and I like being right on the corner. I wanted to get this fragrance to people without it feeling jarring and out of place [at the concerts]. A lot of people ask about my tattoos, and I thought, ‘We can just put this thing in a tattoo and give it away.’ That seemed like a really cool, origi-nal, practical way to go about it for me. Standing at the door and handing out [traditional samples] felt a little like a swap meet.” In addition to the thunder-bird, Urban’s tattoos include “love,” on his right wrist, “Nicole” with a tribal band, which circles his right bicep and an eagle on his left shoulder blade.

Urban is also giving people the op-portunity to purchase the scent on his fan Web site, keithurban.net, this month, giving them a jump on the retailers. “I have the greatest fans in the world — I know every artist says that, but I actually do,” he said with a laugh. “I wanted to give them the first inhale of it.”

National advertising for Phoenix will break in October fashion, lifestyle, men’s and music books. Two shots will be used: one of Urban on a brown leather couch shot by Jean-Philippe Piter, and a second of him playing an electric guitar shot by Max Vadukul. Boom plans extensive radio advertising and an equally exten-sive social-media campaign, said Killian.

Urban said he has a yen to do additional fragrances. “I hope this one allows me to do more, because it was a

process I really, really enjoyed. It’s a little like making a record — the first one was a crash course in a lot of things.” And the next one may be a women’s juice, he said. “We have been working on a women’s scent, and I hope we get to release it,” he said. “I’m fortunate to have someone really close to me who is very good at these things.” That would be Kidman, who, among other things, was once the face of Chanel No.5. “[Nicole] has been helping me quite a bit in that area, so I think it’s just a matter of time before we can release the women’s

one, as well.”His future endeavors may well

stretch past music and fragrances, although he emphasizes that any new projects have to feel authentic. “For me, it’s got to come from what I naturally do,” he said. “The cologne was such a natural extension of my lifestyle. If I were going to do some sort of an apparel thing, it would have to be based on my lifestyle. I wouldn’t do it just so I could have some sort of little clothing empire. I’ve always been a fan of the right cut of things, and the way fabrics are. I’ve always worked very closely on my merchandise to make sure we have really soft, comfortable shirts, because I can’t stand those stiff, boxy, cheap-ass concert shirts that you get on tours. I’d rather maybe make a little less on the shirts and

make sure that they have quality, that people want to wear them, that you feel good when you put them on.

“As you can tell from my big long answer here, it probably is inevitable that I will do a clothing line,” he said with a laugh.

Whether it’s music, a fragrance or a clothing line, Urban believes motivation for all stems from the same place. “I like entertaining, and I love bringing people together and feeling that sense of unity, and having people feel good. That’s really what music is to me. It’s allowing people to feel good. Scents instantly create a memory, just like a melody is a memory. In the end, it’s all about allowing people to feel good and feel their best and feel something.”

I can be physically quite tired, but still have this gratitude and euphoric glow

about the way I feel about life now.

And it never used to be that way before

I had a family.

A Phoenix ad visual shot by Max Vadukul.

The Estée Lauder Companies Inc. is a global leader in prestige beauty driven by the creativity and innovation of our diverse set of brands.

We offer our consumers prestige products in skin care, makeup, fragrance and hair under the following brands:

Because of the exceptional value of our brands and their importance in helping consumers identify our products, we vigorously protect them from misuse and infringement.

WWD friday, august 5, 20116

Cosmoprof Unveils Nail, Smoothersbeauty

By AndreA nAgel

lAS VegAS — Cosmoprof north America proved to be fertile ground for what could be dubbed “nail wars” as several compa-nies poised themselves to take dead aim at Cnd’s Shellac this fall, a long-lasting power polish formula which altered the manicure playing field last spring with Shellac UV Color.

nail innovations, along with natural and organically positioned hair-straight-ening treatments, emerged as trends from Cosmoprof, the show’s ninth annual event, which was held at the Mandalay Bay Convention Center here from July 31 through August 2. The show at-tracted more than 760 exhibiting companies, up 12 percent from last year, according to Y Public relations, and almost 25,000 at-tendees, which included importers, distributors, manufacturers and salon owners.

new firms to the show included love & Toast (which also showed at nACdS Marketplace), Milani (which usually appears at nACdS Marketplace but did not this year), Michael O’rourke’s rock Your Hair and eVO, a natural hair and skin care line.

long-lasting manicures took the in-dustry by storm in 2010, with Shellac revving up slumped salon sales with an estimated $25 million to $30 million in its first year. As such, all eyes will be on those who are expected to be Shellac’s main competitors, such as OPI gelColor, which is set to hit salons in mid-October with 28 of their most popular colors, plus a base and top coat. Packaged in an opaque bottle (the formulas are light sensitive) OPI gelColor formulas require 30 seconds of dry time after each coat; four coats are needed. To help with removal, OPI is coming out with individual soak-off sleeves, and custom-made led lamps, which are branded, said Suzi Weiss-Fischmann, executive vice president and creative director of OPI Products.

At Orly, John galea showed off the firm’s gel FX new gel manicuring system. galea said gel FX has sev-eral points of difference, including offering 32 shades, vitamin-infused polishes and a superthin formula. The items previewed at Cosmoprof Bologna and are now set for salon distribution in the next three weeks.

nail color got a lot of play at Cosmoprof, with textured nails remaining hot for the balance of the year, sparked by OPI’s Shatter collection. Some notable items are coming from essie with luxeffects, which will roll out to salons in november. Formulas are said to offer both texture and shine, as shine tends to be a trade-off for texture. Items will sell for $8 a bottle. AII is also focusing on textured nails with China glaze planning 3d glitters for 2012, formulas that also provide a hologram effect.

natural and organic hair defrizzing treatments were also popular. Philip Pelusi’s Tela Beauty Organics’ Phyto-Keratin Smoothing Treatment Blowout, which contains 85 percent USdA certi-fied organic ingredients, was seeking dis-tribution at Cosmoprof. The treatment, which he said lasts between four and six weeks, uses Hydro Charged Pelusi Ceramide Complex, a patent-pending po-tent strengthening and moisture-binding plant ceramide complex to help repair damaged sites on hair and aims to defrizz hair, not straighten hair. The formula is free of formaldehyde and formaldehyde derivatives and does not require gloves when handling. The Blowout also con-tains a string of organic ingredients, such as reishi mushrooms, red sage, horsetail, sprouted soy and burdock. Suggested ser-vice price is between $90 to $125.

Also on the defrizz front, Joico is

launching Smooth Cure The Frizz, a 72-hour, at-home keratin treatment that is a four-step process offering cumulative benefits. Joico is also partnering with styleseat.com, a Web site based in Palo Alto, to serve as an online platform for customers to search for Joico salons, book appointments and post product reviews. “It will be very Joico centric,” said Valerie robinett, the brand’s new public rela-tions director. Joico has also partnered with colorist Beth Minardi, for a new collaboration, Minardi luxury Products. Zotos, Joico’s par-ent, will distribute and eventually manufac-ture the items. robinett also said that Joico has named rita Hazan a salon partner, where their celebrity stylist, george Papanikolas, can work from while on the east Coast. And for the first time, Joico is partnering with par-ent company Shiseido for a gift set which will offer two pink Shiseido lip glosses, along with a KPak at home conditioner.

discover Beauty, a Cosmoprof north America initiative that sets up emerging brands with retailers attending the show, re-turned this year with 17 brands participating.

Brands had the chance to meet face-to-face with retail-ers such as Bergdorf goodman, C.O. Bigelow, Cosbar, duane reade, Henri Bendel, HSn, nordstrom, Skins 6|2 and Zappos. The discover Beauty Award, which awards the brand based on creativity, innovation and market readiness, was voted on by buyers and beauty editors and given to Snowberry from new Zealand, a natural antiaging skin care line comprised of peptides, antioxidants, super fruits and herbal oils, including ex-tracts from new Zealand rain forest plants cultivated on Snowberry’s plantation.

Kicking off Cosmoprof was The north American Hairstyling Awards (nAHA), a Professional Beauty Association (PBA) event and the most prestigious hair-styling and makeup competition in north America. Celebrating 22 years as the pinnacle award for beauty professionals, winners were recognized at an awards ceremony held at the Mandalay Bay resort & Casino. nAHA’s top honor, Hairstylist of the Year, was presented to eli Mancha of Chicago’s Bang Salon and the lock & loaded line. More than 3,000 beauty professionals attend-ed the event, including entertainer Holly Madison, who was awarded the 2011 Beautiful Humanitarian Award. nAHA was hosted by the star of Bravo’s “Tabatha’s Salon Takeover,” Tabatha Coffey.

Clockwise from top left: OPI’s new GelColor; a hair presentation at NAHA; Eli Mancha, NAHA’s hairstylist of the year; Holly Madison and Tabatha Coffey; Tela Beauty Organics Smoother.

WWD.COM

By Molly Prior

ShiSeido Co. haS itS eyeS trained on the U.S. as the beauty giant to seeks to unhinge the com-pany’s future from Japan and grow into a global powerhouse rooted in asia.

“For us, the U.S. market is extremely important,” said hisayuki Suekawa, the firm’s president and chief executive officer, who spent the week in New york and San Francisco meeting with company employees and investors. he departs for Japan on Saturday.

“to a large extent the rest of the world looks to the U.S. as a market leader,” Suekawa told WWd on Monday, speaking through an interpreter. “there are trends here that the rest of the world aspires to. it’s incumbent upon us to build a strong brand here. that will have a tremendous impact on us being able to grow our customer base.”

Suekawa said a number of the company’s port-folio brands will shoulder the group’s U.S. ex-pansion, including its flagship Shiseido, Nars Cosmetics, Clé de Peau Beauté, its designer fra-grance business Beauté Prestige international, and the recently acquired Bare escentuals, which broadens the firm’s distribution channels to in-clude infomercials and deepens its knowledge of e-commerce and stand-alone boutiques.

a mere four months into his post as ceo, Suekawa is determined to significantly grow Shiseido’s busi-ness in the U.S. and beyond. Japan currently ac-counts for 57.1 percent of the company’s sales, which totaled 670.7 billion yen, or $8.07 billion, for the year ended March 31. Suekawa aims to shift that percent-age down to 50 percent by 2017, as Shiseido strength-ens its footing in markets outside its homeland.

“europe and North america are locations where we feel we have the most [opportunity] to grow our prestige business,” said Suekawa. China also is top of mind. “the Chinese market is a rapidly growing market so we have high hopes for China,” he said.

Suekawa, who is entering his 30th year at Shiseido, said of the company, “in the past, we tend-ed to be very Japan-centric: our product and our it were very focused on Japan. that was fine back then, but as we move forward we need to have a global standard that is common to all markets in which we operate,” he said. the company’s products are cur-rently sold in 85 countries. “it’s tough for a guy like me who has spent 30 years at the same company, always within Japan, to be able to respond to this growing need. But, if we want to succeed as we go forward, it’s essential that we do this,” said Suekawa.

his trip to the U.S. follows a similar one to europe in July, and another is planned for September to China and other parts of asia.

“i don’t think you will find another ceo in the company’s history who has traveled to all of the Shiseido’s offices at the kind of speed that i have,” said Suekawa.

his comments are not meant to be boastful. in fact, during his first 100 days as ceo at the 139-year-old company, Suekawa traveled throughout Japan, visiting all of Shiseido’s offices there. and of course, there were unforeseen issues to attend to. less than three weeks before he took over the cor-ner office, the devastating earthquake and the tsu-nami that came in its wake hit Japan.

“the first thing that i did upon becoming ceo was to ask my staff, ‘When can i visit the parts of Japan that have been most heavily hit?’” he re-called. Several weeks into his tenure, Suekawa visited the northeastern part of the country to as-sess the damage. Fortunately, the company’s en-tire employee base was spared. Now the country is weathering brutal summer temperatures while its citizens work to scale back energy usage as power plants are shut off intermittently for in-spections, he said.

in the tohoku region, the area hardest hit by the earthquake and tsunami, roughly 300 points of sale for Shiseido were heavily damaged. Suekawa said that many of them — about 190 — have begun operating again, but he cautioned the economy has yet to recover as hordes of people have relocated from the area. tourism also has suffered. “another major hit we took is that we used to have a lot of Chinese customers who traveled to Japan to visit stores that sold our products, but right after the earthquake most of these people stopped coming.”

he said some reports from June and July showed a recovery of some traffic, but fewer foreign visitors is taking a toll on revenue, particularly for depart-ment stores in the tokyo metropolitan area.

despite its interests aboard, Shiseido is focused on improving its business in Japan.

“one of things i need to do as soon as possible is to help rebuild and recover our position in the Japanese market. We are revisiting our whole product list to see where we can make improve-ments,” said Suekawa, noting that the Japanese market is small in scale, but competition is fierce. in the past, Shiseido relied on a spate of seasonal launches, backed by aggressive advertising, to spur sales. “We’ve gotten to the point where we have to acknowledge that times are different now. one of things we are doing this year is to halve the num-ber of new product releases in Japan. in the past we have [introduced] anywhere between 500 to 600 stock-keeping units into the market. this year it will be half of that, which means we can make signifi-cant cost savings both in terms of personnel and fi-nancial costs. We will be plowing these savings back into developing new research for better formula-tions and into ensuring that the quality of our beau-ty consultants is better than it has been the past.”

Suekawa’s propensity for doing things differ-ently extends to his management style. he’s bent on demystifying the ceo post. “the thing that i have given the most priority is to go out and spend as much time as possible with our employees who work on the front lines of the business. When i was on the front lines, before i ever became a manager, to me a ceo tended to be somebody who was far re-moved from anything that i had to do,” Suekawa recalled. “these were people who lived above the clouds as far as i was concerned.”

he admitted the only time he saw the leader of the company was generally in a photograph next to a newspaper article about the firm. “i would like to set a different example. i’d like to spend more time standing with the people who work for Shiseido explaining what i hope to achieve from the business and hearing from them what their opinions are, especially in Japan where we face our most serious issues.”

’’

’’

WWD FRIDAY, AUGUST 5, 2011 7

By SUSaN StoNe

BerliN — Beiersdorf attributed its global Nivea anniversary campaign to boosting company performance in the second quarter.

the hamburg-based cosmetics and adhesive maker registered net profits of 133 million euros, or $191 million, dur-ing the period, a 4.7 percent rise over second-quarter 2010. Group sales be-tween april and June grew 2.1 percent to 1.5 billion euros, or $2.16 billion.

Second-quarter sales for Beiersdorf ’s consumer division posted a 1.2 percent uptick to 1.26 billion euros, or $1.81 billion. the company’s consumer division, which includes eucerin, la Prairie and labello, in addition to the 100-year-old Nivea brand, generated 84.2 percent of group sales in the quarter. the division’s operating profit, excluding special factors, was 156 million euros, or $224.4 million, down 6 percent.

Beiersdorf stated its consumer divi-sion’s performance in europe during the period was negatively impacted by Nivea’s exit from the makeup business,

but lifted by activities marking Nivea’s 100th anniversary.

Beiersdorf ’s net profits for the first half of 2011, excluding special factors, gained 8.8 percent to 256 million euros, or $359 million. Company sales between January and June increased 2.6 percent to 2.9 billion euros, or $4.07 billion.

revenues from Beiersdorf’s consumer division were 2.43 billion euros, or $3.41 bil-lion, a 1.3 percent rise versus first-half 2010.

dollar figures are converted at av-erage exchange rates for the corre-sponding period.

Beiersdorf 2Q Profits Rise 4.7 Percent

Shiseido’s Global Growth Blueprint

Europe and North America are locations where we feel we have

the most [opportunity] to grow our prestige business.

— Hisayuki suekawa, sHiseiDO CO.

A selection of Nivea products.

WWD.COM

La Prairie intends to build on the success of Cellular Power infusion with the September introduction of Cellular Power Charge Night, an overnight antiaging treatment.

Cellular Power infusion, a $475 skin firming gel that land-ed on counters in February, stands as La Prairie’s single biggest product launch due to its scientific breakthroughs. “We call Cellular Power infusion a game-changer, geared towards targeting aging in a new way: by addressing three dimensions of the skin — mitochondria, skin cells, skin tissue,” said Lynne Florio, president. The company took the rare step of advertising it with print ads and promoted it via Twitter in its first foray into social media, she added.

a source noted it was on track to reach $10 million in first-year U.S. sales and $50 million worldwide its first year, and the new Cellular Power Charge Night product is expected to follow at least the same growth trajectory if not higher.

The new goo combines reti-nol with a synthetic oxygen transfer agent called perfluo-rodecalin that infuses oxygen into the skin to help keep it hy-drated while the retinol stimulates cell renewal, according to brand spokeswoman Jaime Maser.

Cellular Power Charge Night is packaged in a dual-phial contain-er of white retinol cream and blue PFD serums that mix together when pumped. The 30-ml. serum is $475.

“Scientists know that aging signs in the skin can be caused by low oxygen levels that occur as the skin matures,” Maser explained. “The unprecedented combination of retinol and oxygen in one product gives a unique nighttime recovery opportunity for the

skin.”in the U.S., the serum will carried at all of La Prairie’s 220 doors.

it also will be used in late-day facials at La Prairie spas in the Beverly Hills Hotel and the ritz-Carlton Hotel Grand Cayman and the ritz-Carlton Central Park, she noted.

another La Prairie spa is slated to debut in October at Los angeles’ iconic Hotel Bel-air, which has been closed since fall 2009 for extensive renovation and expansion.

— Holly Haber

8 WWD friday, august 5, 2011

Givaudan Profit Falls 40%

Soap & Glory Goes to SephoraBy aNDrea NaGeL

BeaUTy aND fitness in-novator extraordinaire Marcia Kilgore has found a new U.S. retail partner for Soap & Glory, the bath, body and skin care line she created in 2006: Sephora.

The relationship be-tween Soap & Glory and Target, the brand’s origi-nal retail partner where it launched in 2007, fell apart after efforts to “manage the inventory situation and get [Target] to buy more [prod-uct]” failed, said Kilgore. She added she had received numer-ous complaints from customers that shelves were always empty.

“you can’t sell something that isn’t there,” said Kilgore, who stopped shipping Target product that spring.

in May 2010, Kilgore said Sephora executives heard her speak at WWD’s Beauty CeO Summit, where she led a pre-sentation on how to build a brand. Kilgore later got a call asking her to visit Sephora’s headquarters in San Francisco to discuss a possible retail deal.

Kilgore admitted she had initially courted Sephora prior to the brand’s Target deal but, “they weren’t sure if it was a fit for them. But when i gave the speech, Soap & Glory was already three years old [in the U.S.] and [the overall brand] just turned five. We are quite successful in the U.K. and we had launched in Sephora Singapore so i am sure by then they knew more about the brand,” she said. Kilgore owns the brand privately, which she said will generate an estimated $69 million by yearend.

Soap & Glory, she said, was inspired by a “kitchen apron, ridiculous tabloid headlines and a takeout container that was beautiful, and i whipped those three things together and came up with Soap & Glory.”

The collection for Sephora, said Kilgore, has many new products that were not available in Target, such as skin care items. There are also items that have not been available to the U.S. mar-ket, which have been successful internationally.

The line has grown from about 18 to 45 items. New items include: righteous Butter Lotion ($20); eDT Pink ($35); Make yourself youthful eye Cream ($30); Glow Job ($25); Face Soap & Clarity ($16), and Clear Here ($22). items will enter 101 Sephora stores Sept. 16 and go live on Sephora’s Web site aug. 16. Products will be displayed on tables and endcaps.

a new Web site and mi-crosite are in the works, as well as Facebook page teasers of the upcoming

launch. “We want to build Soap & Glory in a very grass-roots way. We are still a very independent brand. Our cus-tomer is relatively young and quite media savvy and we are building a rapport with her.”

earlier this week Kilgore celebrated Soap & Glory’s success in Germany, where it has been sold for nine months in Douglas. in honor of the German people’s acceptance of the irreverent brand, Kilgore partnered with artist Oliver Voss to create a large mermaid-like bather that was installed in alster Lake Tuesday.

Kilgore attributes Soap & Glory’s runaway success to its af-

fordable luxury positioning. “it is in a great po-sition because it is doom and gloom out there. it’s well formulated and just a little more ex-pensive than mass.” Kilgore is as amazed at her success as anyone: Other businesses included Bliss day spas, which she sold to LVMH in 1999, and FitFlop, which she still owns and generates nearly $280 million.

“i don’t have a normal perspective of what we should expect in terms of [sales goals] because i have these two brands that just went ‘boom!’ and i am thinking, ‘i don’t know going on!’ i sort of feel the zeitgeist. i think of it like [the electronic game] Tetris. if i get the blocks to fall and fit in one after the other, i think that’s how my brain works, if the blocks fall and i get enough infor-mation, the ideas all come at the same time. it all comes from so many places but i have been lucky to have that.”

By JeNNiFer WeiL

PariS — Givaudan’s first-half net profits were 120 million Swiss francs, or $132.7 million, down 40 percent year-over-year, due to raw material cost increases.

Sales at the Vernier, Switzerland-based flavors and fragrances supplier declined 8.8 percent to 2 billion Swiss francs, or $2.21 bil-lion, in the six months ended June 30. in local currencies, revenues gained 4.3 percent.

Givaudan’s fragrance division registered sales of 927 million Swiss francs, or $1.02 billion, down 8.8 percent versus the same prior-year period. in local currencies, the division’s revenues grew 3.9 percent.

Dollar figures are converted at average exchange for the corre-sponding period.

in a statement, Givaudan’s chief executive officer Gilles andrier said the 4.3 percent local currency sales growth was in line with the company’s midterm guidance. “raw material cost increases have affected our profitability,” he stated. “Givaudan has successfully implemented price increases in collaboration with its customers. These price increases started to become effective in the course of the second quarter.

“Givaudan’s business momentum continues to be strong with a full project pipeline and a further increased win rate,” continued andrier. “We therefore are confident to achieve our ambitious mid-term targets.”

Givaudan has set as an objective to grow organically between 4.5 and 5.5 percent yearly, assuming the market is up between 2 and 3 percent, and to continue gaining market share during the next five years.

Cellular Power Charge Night

La Prairie Adds Power Charge Night

By JeNNiFer WeiL

PariS — amorePacific Group has agreed to buy the annick Goutal fragrance brand from Starwood Capital. Terms of the deal were not disclosed.

Seoul-based amorePacific is making the acquisition through its overseas holding company, amorePacific Global Operations Ltd. The move is meant in part to heighten the company’s recognition as a global beauty company, reinforce its overseas business capabilities, strengthen its brand portfolio and luxury brand image, and improve production efficiency through shared resources. The acquisition is in-tended also to establish a foothold for expanding amorePacific’s fra-grance business in asia, such as China and Japan.

“By successfully completing its first overseas brand acquisi-tion, amorePacific will be able to build experience that will strengthen its capabilities for future potential acquisitions,” the company stated.

Paris-based annick Goutal was launched in 1981 and is today sold in more than 1,300 doors — including its own boutiques — in 20 countries.

amorePacific’s brands include Paris-based Lolitia Lempicka in fra-grance; amorepacific, Sulwhasoo and Laneige in cosmetics, and amos, Spa Goa, Mise en Scene in hair care. The company’s 2010 sales were 2.26 trillion Korean won, or $1.97 billion at average exchange for the period, up 20.1 percent versus 2009.

Paris-based investment firm Ohana & Co. advised amorePacific on the annick Goutal acquisition.

AmorePacific Buys Annick Goutal

beautyMarcia Kilgore

and Soap & Glory

items (below).

An Annick Goutal scent.

PHOTO BY STEVE EICHNER

Summer ’ScapesGlossy magazine editors get their vacations, too (well, perhaps more

than their underlings) and most New York ones head to the Hamptons. Take Brandon Holley of Lucky, who likes nothing more than to hit the Ditch Witch food truck

in Montauk for an early morning sticky bun. For more editors’ holiday haunts, see page 10.

WWDSTYLE

ABOUT THE DOG: Jill Abramson’s favorite writers are Robert Caro and best friends Maureen Dowd and Jane Mayer. That’s revealed in Vanity Fair’s Proust Questionnaire in its September issue with The New York Times’ soon-to-be executive editor.

Abramson mentions her dog fi ve times in the interview — Worst fear: “Walking Scout and forget to bring a bag” — which is once more than she discusses the Times and twice more than she mentions her children.

Her favorite pastime? Rereading “The Great Gatsby” every year. Most treasured possession? Autographed Yankee pictures, “especially one with Babe Ruth and Lou Gehrig.”

Her most “marked characteristic” is her “peculiar Upper West side drawl” (which she would no doubt pronounce as, “drawwwwwwwllll”).

And what’s her greatest extravagance? “Replacing a pair of Lucchese cowboy boots after my dog, Scout, gnawed the toes off the fi rst pair,” she told Vanity Fair.

Not incidentally, her book, “The Puppy Diaries,” comes out in September. — JOHN KOBLIN

TERRY’S TURN: David Webb’s fall ad campaign focuses on Terry Richardson, quite literally. The famed photographer did double duty for the Carine Roitfeld-styled series of print ads for the fi ne jewelry brand when he shot the campaign, which also features a plastic, doll-sized version of himself front and center (holding a strategically placed camera).

“We wanted to reintroduce David Webb

to the world with a new look, but with having all of the original designs he made when he was the biggest designer of his time,” said co-owner Sima Ghadamian, who described the three ads as “sexy, young,

abundant” and “full of saturated color.”

Under the creative direction of Alex Wiederin, this is the company’s fi rst ad campaign in more than 20 years, according to Ghadamian, who acquired David Webb LLC in June 2010 — along with Mark Emanuel and Robert Sadian. The three are out to reinvigorate the brand, and following the opening of a new store and headquarters here in June, the ads are the latest effort to usher in

a new era.

The ads will run in the fall issues of Vogue, Town & Country, and V, among other titles. — RACHEL STRUGATZ

SOCIAL MEDIA SITE LOCKERZ GETS FUNDING: Social media site Lockerz just raised $36 million in fi nancing. The latest round includes DAG Ventures and Live Nation as fi rst-time investors. Lockerz raised $30 million in two earlier rounds of fi nancing, bringing the total raised to $66 million. Financial sources said Kleiner Perkins Caufi eld & Byers and Liberty Media, both of whom are existing investors, were also participants in the current fund-raising round.

In addition, another $9 million is expected to close in the next month or two, those sources said. Lockerz allows visitors to build up points that can be redeemed to buy goods offered on the Lockerz shopping site. Those points, which Lockerz fans refer to as PTZ, accumulate every time a user takes part in some activity on the site, such as watching a video or participating in a poll. — VICKI YOUNG

MEMO PAD

WWD

An ad from David Webb’s fall ad campaign.

KICKING IT WITH DONATELLA: VERSACE HOSTED A PARTY

IN BEIJING WHERE A NUMBER OF SOCCER STARS WERE THE MAIN ATTRACTION. PAGE 12

WWD FRIDAY, AUGUST 5, 201110

By AMY WICKS

IN “SUMMER RENTAL,” John Candy plays stressed-out dad Jack Chester in need of a va-cation. On the brink of a nervous breakdown, he arrives from a long drive, family in tow, at a beautiful, secluded beach cottage with a pal-pable sense of relief and excitement. Since this is a Candy picture, his gorgeous rental turns out to be the wrong house, and he finds what he re-ally got was an awesomely decrepit shack on a public beach. Turns out they have fun anyway.

That scene comes to mind when one first glimpses the East Deck, a beach motel in Montauk where Lucky’s Brandon Holley and Adam Rapoport, editor in chief of Bon Appétit, and their respective families spend their summer weekends.

“We pack up the car and a few steaks from the butcher, get some six-packs and bottles of rosé and grill in the backyard,” says Rapoport, who is partial to the food at John’s Drive-In. “It ain’t fancy. It’s more like indoor camping.”

“My favorite room is A9, right on the corner,” says Holley, who wakes up early for the Ditch Witch truck to get a hot sticky bun for her son and a homemade power bar for herself. In the afternoons, it’s the beach, a little putt-putt and sailing in a rented Hobie Cat with her son. Later on she’ll dig into smoked fi sh dip with crackers and drink dark and stormys, followed by a big bonfi re and s’mores and maybe even the lighting of some illegal fi reworks. “It’s basically sum-mer camp every other weekend for my family,” Holley says.

Undeterred by the stop-and-go traf-fi c on one-lane roads, mostly terrible restaurant food and crowded beaches, glossy magazine editors still favor making the trek to the East End for their summer week-ends. And while Holley and Rapoport are partial to the old-school charm of the East Deck, it’s safe to say one won’t fi nd fellow Condé Nasty Stefano Tonchi in line with them at the food truck.

The editor in chief of W lives in Bridgehampton, where he rides his blue Vespa to SoulCycle (also Allure’s Linda Wells’ preferred spot to pedal in place) or the South Fork Kitchen for organic produce and line-caught fi sh. “I spend a lot of time at home, by my pool reading,” says Tonchi. “I try to limit my trips outside of the house be-cause of the traffi c and crowds.”

Those reluctant gaps in his hermitage are often work-related, such as attending benefi ts or dinners. “But this year is very special be-cause we have children,” Tonchi says, referring to his two newborn babies, Maura and Isabella. “I gravitate more toward Southampton than East [Hampton]. There is more of a multicultural fl avor, and it’s more fun and very Euro. People aren’t in black but more colorful colors.”

Robbie Myers, editor in chief of Elle, on the other hand, is Team East Hampton. She spends the weekends in her “little house” in the tony town, making trips to Dylan’s Candy Bar on the main drag. She just got back from surf camp with her daughter, and so she’s most likely to be found at beaches from Ditch Plains to Atlantic Beach.

Neighbor Pilar Guzman, editor in chief of Martha Stewart Living, and her husband, Chris Mitchell, publisher of Condé Nast Traveler, said they lead “a very un-Hamptons-y life,” in East Hampton, adding she can be found most days at Sagg Main beach and evenings barbecuing with friends. They have a handful of restaurants they go back to, such as La Fondita in Amagansett and Bay Burger in Sag Harbor, but they don’t drive much. “We have been known to balance many a six-pack on the side of our bikes,” Guzman says.

Wells, meanwhile, retreats to Southampton, where she’s a regular at the farmers’ mar-kets, fi sh shops and shops around town at Edit Summer for Derek Lam and Alexander Wang or Tenet, for Isabel Marant.

As the weekly party pages confi rm, David Zinczenko spends many a weekend out in the Hamptons. Glenda Bailey, editor in chief of Harper’s Bazaar, says she’ll rent a beach house later this month in Amagansett.

The East End, however, isn’t for everyone. “Can I hear it for New Jersey, the most ma-

ligned, misunderstood and underrated state in the Union?” says Jim Nelson, editor in chief of GQ. He spends most weekends at his house on the Delaware River in Jersey, in a town with no traffi c lights. “It feels right and good to spend the whole summer blowing off the Hamptons,” says

Nelson. But he will make an exception for the North Fork. “It feels lush and unspoiled,

and at times you can almost fool yourself that you’re in California,” he points out.

Women’s Health editor in chief Michelle Promaulayko also heads to Jersey, to Long Beach Island. “It’s a part of the Jersey Shore that

Snooki wouldn’t recognize,” claims Promaulayko, who spends afternoons

paddleboarding and evenings grilling with friends and drinking rosé, ironically, from Hamptons-based Wölffer Estates.

During the months of July and August, WSJ. editor in chief Deborah Needleman becomes a commuter, taking the train to Grand Central from Garrison, N.Y. She reports that there is no nightlife and only one good restaurant, The Riverview in nearby Cold Spring.

Further up the Hudson, Glamour editor in chief Cindi Leive spends weekends at her home in Milan (the New York version, not the Italian one). It’s pronounced Mye-lan: “Say it the other way and you get eye-rolls from anyone local,” Leive says, adding that her goal is to do as little as humanly possible. When she does make it out of the driveway, Leive heads to Mercato Osteria, a neighborly restaurant in Red Hook, a nearby nursery, and on Sundays, it’s Pilates and the farmers’ market. “I once had a colleague who had a house near ours and she eventually moved away because, as she said, ‘there’s nothing to do there!’ But I think that’s why I like it,” Leive says.

Details editor in chief Dan Peres won’t have to worry about summer rentals this summer. His three-month-old twins will keep him anchored at home in Westchester for the foreseeable fu-ture. “If you can’t get there in a stroller, we’re not going,” he says.

Perhaps he should call Uncle Buck.

MEDIAWWDST

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Mag Editors’ Picks For the Dog Days

SoulCycle

South Fork Kitchen

East Deck

La Fondita

John’s Drive-In

Mercato

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WWD.COMWWD friday, august 5, 2011 11

Lanvin Arrives in MalibuBy Rachel BRown

loS anGeleS — lanvin has gone on vacation to Malibu.

The French fashion house opened its second Southern california store on Saturday at Malibu Village, a shopping center that’s been filling up of late with shops by Missoni, nike Inc.’s Salvation and Super by Dr. Perricone. The lanvin store is the result of a strategy to enlarge the brand’s presence in vacation destinations to keep luxury consumers pur-chasing lanvin’s prod-ucts when they are away from their hometowns during the summer.

“last year, we started our test of what we call a seasonal store that was in Saint-Tropez. It went so well with easy-to-wear pieces that we decided to repli-cate it in Malibu,” said lanvin chief executive officer Thierry andretta. Unlike the Saint-Tropez out-post that runs from June to october, the Malibu store will operate year-round, although it is expected to be open only on weekends in the winter unless sales dictate otherwise.

In the future, andretta said lanvin would consider placing these seasonal stores in vacation areas such as the hamptons and Portofino, as well. “It is something that I think we can do more often, but we need to find opportunities in the right spots,” he said. “we have a really good customer base that is travel-ing and visiting these kind of locations.”

at roughly 600 square feet, lanvin’s Malibu store is the smallest in its grow-ing north american retail fleet and cost less than half of what lanvin typically spends to construct its stores. It takes a much larger footprint of about 3,000 square feet to showcase lanvin’s en-tire men’s and women’s collections. In its small space, the Malibu store has a very tightly edited selection of around 500 stockkeeping units to suit the sum-mery tastes of local shoppers and tour-ists. Malibu Village stores are estimated to generate about $2,000 a square foot in sales per year, but the figure for the lanvin store could be lower since the store isn’t open full-time throughout the year.

The Malibu store’s initial assort-ment contains best-selling items from the spring and pre-fall 2011 line-ups, including day dresses, silk and jersey separates, swimwear and warm-weath-er-appropriate accessories like straw beach totes and raffia sandals. Prices

in the store range mostly from $200 to $4,000. Three to four staff members ro-tate between lanvin’s Beverly hills and Malibu stores.

alber elbaz puts a local spin on store design in each lanvin location and palm trees decorating the Malibu store give it a california feel. But the store also has lanvin’s signature retail de-

sign concepts, notably a sitting area at its center with a zebra rug, louis XV-style sofa and chairs, mirrored coffee table and an art Deco chan-delier, brushed steel panels, blackened steel bookcases and metal and glass display cases.

andretta indicated lanvin had confidence to open in Malibu be-cause of the success of its store on Rodeo Drive, which he said is “a little over our expectations,” and his experience with international visitors to Malibu. “I personally like to have lunch there

because it is totally california, and it is really easy,” said andretta. “You really have an international crowd. In august, I was there, and I ate dinner at nobu. It was an early dinner in the california way. It was at 6:30 or 7 p.m., and when I was coming out, I [ran into Fiat head of brand promotions] lapo elkann. he said to me, ‘every time I come to california, I stop at this place.’”

andretta expects the Malibu store to be profitable in its first year. overall, lanvin’s stores registered a same-store sales increase of 32 percent last year, and he said same-store sales have continued on a double-digit growth pace this year. within the next five years, he added, lanvin projects its store count in the U.S. will double from five to 10. The brand has been scouting new York locations for a men’s unit, which it hopes to open dur-ing the first half of 2012, and andretta said possible upcoming locations for the brand on the west coast could be in orange county and San Francisco.

however, most of lanvin’s retail ex-pansion will be outside the U.S. next up for the brand’s retail openings is a 1,000-square-foot store in The Peninsula Beijing hotel and two Moscow locations under a franchise arrangement with the Mercury Group. next year, andretta said lanvin could add accessories-only stores to the retail mix and is targeting duty-free locations — he mentioned Seoul specifically — to inaugurate that con-cept. In total, andretta estimated lanvin has about 25 franchised stores, 25 brand-owned stores and 50 in-store shops.

— With contributions from marcy medina

WEDDING BEAUS: Following Arnold Scaasi’s fashionable walk down the proverbial aisle are Michael Kors and his longtime boyfriend Lance LePere. after life & Style magazine reported that Kors and lePere were spotted by city hall on wednesday, the couple confirmed to wwD that they received their marriage license at the city clerk’s office in Manhattan on august 3. “lance and I are very excited to finally be able to have the opportunity to marry in our home state after many years together,” said Kors. “we have no plans for a major party, but we will be getting married privately.”

HOUSE ARREST: a chinese former model who shot to fame in the early nineties following high-profile collaborations with Laura Biagiotti is under house arrest after being brought up on money laundering charges by Italian police.

Two decades ago, 42-year-old model Xiao Dong Mei was part of Biagiotti’s exclusive coterie. In February 1995, Dong Mei accompanied Biagiotti to Russia for a four-day fashion extravaganza culminating in a runway show at the Kremlin — the first of its kind in Moscow by a western fashion designer. after Dong Mei enjoyed a lucrative modeling career, she broke into Italian TV in 1993 and added game show host and showgirl to her resume. on Tuesday, Italian police arrested Dong Mei and her 47-year-old husband, Italian accountant Federico Di Lauro, while they were vacationing in Ponza on their 56-foot yacht.

Di lauro was jailed in Rome on a series of charges, the largest offense stemming from a Ponzi scheme that he allegedly ran with two co-conspirator ex-bankers, earning him the nickname “The Madoff of Parioli,” alluding to the neighborhood of his Rome office.

Speaking to the Italian newspaper corriere della Sera on Thursday, the ex-model asserted her and her husband’s innocence.

. A DEBUT FOR MCQ: McQ, the younger, lower-priced line from alexander McQueen,

will be getting its first stand-alone shop next year. The McQ store will open in central london in the early spring of 2012, a McQueen spokesman has confirmed. alexander McQueen took the McQ line in-house last year, and since then has been building it into a full, stand-alone collection.

SPEAKING IN CODE: French leather goods brand lancel will launch a collection inspired by Salvador Dalí with an exhibition at the Paris flagship of department store chain Galeries lafayette. To celebrate the collection Daligramme, lancel has joined forces with the Gala-Salvador Dalí Foundation to stage a retrospective featuring never-before-seen photographs of the Surrealist painter and his wife Gala at the store’s Galerie des Galeries exhibition space from Sept. 1 to 20. The collection, which is based on a secret “love alphabet” developed by the artist, consists of 20 handbag styles — 13 in jacquard and seven in leather — with names like DaliDay and Dalicious, and a range of small leather goods and accessories, a spokeswoman for lancel said. The bag designs will include two updated versions of the original slim rectangular Dalí handbag produced by lancel in 1970, which featured a strap made from a bicycle chain. The 2011 versions, dubbed DaliDol, come with more practical leather straps.

Fashion scoops

Inside the new store.

Lance LePereMichael Kors

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WWD.COMWWD FRIDAY, AUGUST 5, 201112

By VICKI M. YOUNG

NEW YORK — Apar Kothari has been named vice president, head of business development and strate-gic partnerships at private sale shopping destination site Rue La La, effectively immediately.

Kothari will be based in Rue La La’s New York offi ce. Her responsibilities will include identifying strategic brand partnerships and creating innovative growth initiatives for the company.

Kothari was the founder and chief executive of-fi cer of fl ash sale site aggregator MyNines Inc. She will leverage her extensive fl ash sale knowledge from her MyNines experience to develop brand-tar-geted marketing strategies for the Rue La La busi-ness model and member base.

MyNines, now shut down, was founded in 2009. Kothari raised $500,000 in early-stage venture capi-tal fi nancing, but couldn’t raise the additional fund-ing to keep the operation going.

Steve Davis, president of Rue La La, said, “Apar’s appointment underscores Rue La La’s commitment to innovation through strategic partnerships. In this role she will identify and establish relationships with premier lifestyle brands in order to offer the most ex-clusive and exciting experiences for our members.”

Prior to MyNines, Kothari was manager of cor-porate development and strategy of Fox Interactive Media. She was also a venture capital associate at Rustic Canyon Partners and a senior analyst, corpo-rate development, M&A at IBM.

By JOELLE DIDERICH

ADIDAS AG SAID NET PROFIT rose 10.7 percent in the second quarter, prompting it to raise full-year guidance for the third time and predict record sales in 2011, de-spite rising input costs and a strong euro.

The world’s second-largest sporting goods company now expects full-year sales to increase around 10 per-cent on a currency neutral basis, up from an earlier forecast of a single-digit rate increase.

“This will be driven by strong performances in markets like Greater China and North America, continuing robust sales in our own retail stores and a less pronounced decline in Japan compared to what we feared in May,” Adidas Group chief executive offi cer Herbert Hainer said on a conference call after the fi gures were published.

The company, based in Herzogenaurach, Germany, said net income rose to 140 mil-lion euros, or $201.4 million, in the three months to June 30 from 126 million euros, or $160.7 million, in the year-ago period. Currency conversions were made at average exchange rates for the periods to which they refer.

Sales were up 5 percent in the second quarter to 3.06 bil-lion euros, or $4.41 billion, from 2.92 billion euros, or $3.72 billion, a year earlier. On a currency-neutral basis, sales increased 10 percent during the quarter.

“After the strong fi rst-half performance, we are on our way to record sales and earnings in 2011,” Hainer stated. “This is all the more notable as various curren-cies have been weakening versus the euro, which negatively impacts our fi nancial results in the short term.”

As part of its Route 2015 strategy, the company is aiming for sales of 17 billion euros, or $20.7 billion at current exchange, and an operating profi t margin of 11 percent by 2015. This compares with sales of 12 billion euros, or $15.9 billion, and an operating profi t margin of 7.5 percent last year.

In the second quarter, business boomed in the group’s retail network, with sales up 13.1 percent. Revenues in the wholesale channel inched up 2.3 percent.

Greater China continued to post the strongest growth, with sales climbing 30.8 percent during the three-month period. Eastern Europe and Russia also enjoyed brisk business, with sales in European emerg-ing markets up 10.8 percent.

Hainer said he expected Greater China, formerly a weak spot for Adidas, to continue on the growth path, although comparatives will become tougher in the sec-ond half. “We will defi nitely grow double digits in China for the full year, there is no doubt,” he said.

Sales in North America were down 3.7 percent in the second quarter, as the weakness of the dollar against the euro ate into the group’s earnings reported in the single

European currency. On a currency-neutral basis, sales in North America rose 5.4 percent.

A notable success in the U.S. market was the AdiZero Crazy Light basketball shoe,

launched in April, which had a sell-through rate of 75 percent after 45 days. “This

shows that when you’re bringing new innovative products to the market which are appealing to the consum-er, then even in tougher times, you can be successful,” Hainer said.

In Japan, business is recovering faster than expected following the

March 11 catastrophe, with sales down just 1 percent in currency-neutral terms in the second quarter, the ceo said. The company does not break out individual

country statistics in reported terms.Around half of the group’s 300 points of

sale in Japan that were shuttered in the wake of the disaster have now reopened, he reported,

and Adidas now expects sales in the country to drop by a high single-digit rate in currency-neutral terms in

the second half, compared with its earlier forecast of a 15 to 25 percent decline between April and December.

The group expects the Reebok brand to contribute to its gross margin for the full year, but said this positive effect would be offset by rising raw material costs and capacity constraints across the board. It is counteracting these pres-sures with measures that include streamlining its supply chain and raising prices at strategic price points.

“Cotton prices have come down, which is helpful. On the other hand, rubber is still up, mainly because of the car industry,” Hainer said. “If polyester and rubber would come down, it defi nitely would be helpful.”

By KATHLEEN E. MCLAUGHLIN

BEIJING — Storied soccer rivals AC Milan and FC Internazionale face each other here Saturday in this year’s edition of the Supercoppa Italiana, but that’s not the only competition transpiring in China’s capital.

The fashion set is taking sides, too.Donatella Versace hosted a cocktail party for 800

people on Wednesday night at the Sanlitun Village mall housing Versace’s Beijing fl agship. The designer, clad in a shimmery skintight dress, held court with Chinese celebrities like actress Lin Peng. Soccer players, including Luis Figo, Giampaolo Pazzini and Samuel Eto’o donned pinstriped suits as well as shirts and ties in monochromatic blue. Versace re-cently inked a deal to dress the team off the pitch.

“I’m very excited about dressing my favorite foot-ball team,” Versace said. “First of all, they’re not built like regular men, so you have to think of the shape of the suits.”

Meanwhile, Dolce & Gabbana, which is a sponsor of AC Milan, is holding its own in-store cocktail party in Beijing today to present a book called “Milan Fashion Soccer Players Portraits,” fi lled with black-and-white portraits of the players taken by photographer Marco Falcetta. Although the designers aren’t making the trip to China, the players are expected to put in an appearance.

Versace arrived in Beijing on Wednesday, and will stay through the weekend match. She’s no stranger to the Chinese capital, having just been here in December for a viewing of the Sanlitun fl agship.

“I always enjoy it here in Beijing,” she said. “The Chinese are becoming more and more fashionable all the time.”

Of course, the week’s events aren’t just about soc-cer, but about drawing Chinese consumers to the brands. Versace said China remains a bright beacon in the global market, and the company will move for-ward with expansion plans here in the coming years.

“For us, China is the most optimistic place,” she said. “We absolutely see amazing growth here.”

Adidas Raises Profi t Forecast

Apar Kothari Heads To Rue La La as VP

Donatella Serves Up Soccer Style in Beijing

The AdiZero Crazy Light basketball shoe.

Apar Kothari

The scene outside the store.

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Donatella Versace and the soccer stars.

FOR MORE PARTY PICTURES, SEE

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