Fashion. Beauty. Business.

DAILY EDITION 27 APRIL 2016 1

A SIR AND A LADYLady Gaga and Sir Elton John launch a limited-edition apparel line at Macy’s. PAGE 5

PHOTO SALESotheby’s in London is holding an auction of some of the fashion world’s most memorable images. PAGE 13

ADDING FIZZConcept store Story has linked with Pepsi for an emoji-driven retail experience. PAGE 9

● The restructuring was revealed as the company reported its first profit in three years.

BY VICKI M. YOUNG

NEW YORK — Coach Inc. revealed plans to cut two of its senior management roles as well as 300 other jobs as it pushes toward the goal of a 20 percent operating margin for the Coach brand in fiscal 2017.

The accessories brand said the manage-ment shakeup and job cuts would help it become an “agile and scalable business model.” Coach revealed the plan as it reported the company’s first profit in three years, boosted by overseas markets.

The group promoted Andre Cohen to pres-ident, North America and global marketing, adding North America Wholesale and global marketing, customer experience and digital to his responsibilities. Todd Kahn has been promoted to president, chief administrative officer and secretary, and will expand his oversight to include information technology, supply chain, global environments and pro-curement. Diane Mahady has also taken on the role of global head of merchandising for the Coach brand.

The changes mean that Gebhard F. Rainer, president and chief operating officer, and David Duplantis, president, global marketing, digital and consumer experience, are leaving the company.

Coach is also planning other changes under the heading “organizational efficiency,” which

RETAIL

Coach Shakes Up Management, Cuts 300 Jobs

CONTINUED ON PG. 8

● The joyful mood was best reflected by the exuberant silhouettes sent out by 28-year-old Japanese designer Wataru Tominaga, who scooped the Première Vision Grand Prize.

BY LAURE GUILBAULT

HYÈRES, France — Men’s wear grabbed a lot of the spotlight at the 31st Hyères International Festival of Fashion and Pho-tography, which wrapped its four-day run on Monday.

The exuberant and playful men’s designs by 28-year-old Japanese designer Wataru Tominaga scored him the Première Vision Grand Prize, while Finnish duo Hanne Jurmu and Anton Vartiainen, who won the Chloé prize as well as a special mention from the jury, paraded a men’s wear col-lection made primarily of discarded mate-rials including melon skin and flowers.

FASHION

Men’s Wear GrabsSpotlight in Hyères

CONTINUED ON PG. 6

FASHION

Team AmericanaIn honor of the 100-day countdown to the Rio Summer Olympics, Polo Ralph Lauren and the U.S. Olympic Committee have revealed the designer’s official uniforms for the Closing Ceremony. Here, a sketch.For more, see page 4.

it’s what’s underneath that counts

Meet the new brief BOXER, the comfort of a boxer with the trim fit of a boxer brief.

27 APRIL 2016 3

● The company’s net earnings were up 27 percent for the third fiscal quarter.

BY ALLISON COLLINS

Even with a pricing increase of 2 percent, net beauty sales at Procter & Gamble Co. fell 5 percent in the third fiscal quarter.

The beauty segment’s organic sales increased 1 percent, with higher pricing offsetting lower sales volume. Solid sales for SK-II offset declines at Olay. In hair care, Pantene and Head & Shoulders grew sales and gained market share, but the category’s organic growth was flat because of declines at other brands. Head & Shoulders has experienced 8 percent compound average sales growth over the past 10 years, even with currency impacts, P&G chief financial officer Jon Moeller said on the company’s earnings call.

Organic grooming sales decreased one percent as growth in international markets was “more than offset by declines in the U.S.,” P&G said. Moeller said in grooming, P&G needs “to be more present than we are in the direct-to-consumption e-com-merce channels.”

The company is targeting $10 billion in cost savings with plans to reinvest in research and development, products and

packaging improvements, brand aware-ness and trial programs, according to Moeller. “There are clear opportunities to continue to improve our first moment of truth, which is a lot about the package,” he said.

Group net earnings for the quarter were $2.78 billion, up 27 percent from $2.19 billion for the prior-year quarter. Income for the quarter was $3.31 billion, up 10 percent from $3.02 billion. Diluted net earnings per common share were $0.83 for the quarter, down 2 percent from $0.85. Core earnings per share were

$0.86, down 3 percent. Organic sales were up 1 percent.

The company’s shares closed at $79.55, down more than 2 percent.

Overall, net sales for the quarter were down 7 percent to $15.76 billion, from $16.93 billion a year earlier. P&G said that decrease was from the negative impact for foreign exchange, the Venezuela deconsol-idation and minor brand divestitures.

For the nine months ended March 31, P&G’s net sales decreased 9 percent to $49.2 billion from $54.2 billion. The com-pany’s net earnings were $8.6 billion for the nine months, up from $6.6 billion.

For fiscal year 2015, P&G had $70.7 bil-lion in net sales, which were down 5 per-cent from fiscal 2014. Beauty accounted for 18 percent of those sales, but P&G has continued revising its beauty holdings. Investors gleaned slightly more insight into that segment last Friday when Coty released documents that said P&G’s retail hair and cosmetics unit was responsible for 38 percent of net sales, fine fragrances brought in 36 percent of net sales, and the salon professional business contributed 26 percent to overall net sales, for fiscal 2015.

The company expects to close the sale of 41 beauty brands to Coty in the second half of the year, Moeller said. In total, P&G is working to divest 105 brands, which contributed about 6 percent of the compa-ny’s profits, according to the cfo.

As it sheds a large portion of its beauty holdings, P&G has also made a deal to sell its Sarraeguemines, France-based Ondal Sarl plant, which produces retail and professional hair care products, as well as body care offerings, to the Mibelle Group. P&G is also selling a group of hair-care brands, including Pert, Shamtu and Blen-dax, to Henkel.

BEAUTY

P&G Beauty Sales Drop 5% in Quarter

Madonna Names Singer Pia Mia Material Girl’s New Fashion Director ● Madonna names 19-year-old singer Pia Mia as Material Girl’s new fashion director and latest face.

● The 16 Best Pumps for Fall 2016

● They Are Wearing: Shanghai Fashion Week Fall 2016

● They Are Wearing: Hyères 2016

● Rita Ora Wears Beyoncé’s “Formation” Gucci Dress Amid “Lemonade” Scandal

Global Stock TrackerAs of close April 26, 2016

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Vince Holding Corp. +10.82%

Iconix Brand Group Inc. +7.12%

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Coach Inc. +4.16%

Youngor Group Co. Ltd. +3.32%

Trinity Ltd. -3.49%

Samsonite International SA -2.96%

Chow Tai Fook Jewellery Group -2.67%

Myer Holdings Ltd. -2.46%

Procter & Gamble Co. -2.28%

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● The first edition will be held next April during Tokyo Fashion Week.

BY JEAN E. PALMIERI

MAGIC is preparing to make its Asian debut.

The trade show, now owned by UBM plc, is partnering with JFW-International Fashion Fair, Japan’s longest running, twice-yearly trade show, to create IFF MAGIC Japan.

The first edition of the show will be held April 26-28, 2017 at the Tokyo Big Sight

exhibition center, during Japan Fashion Week.

Under the terms of the deal, MAGIC will oversee the look and feel of the new show, which will be “re-imagined and remer-chandised” with “new brands laid out in easy-to-navigate fashion neighborhoods,” to make it more accessible for both retailers and exhibitors.

IFF MAGIC Japan will also include newly developed social media initiatives and marketing strategies as well as show-floor activations.

“Fashion is a truly global industry, and we are thrilled for MAGIC’s upcoming

expansion into the Japan market in part-nership with JFW International Fashion Fair, and UBM Japan,” said Chris DeMou-lin, managing director of fashion for UBM Americas. “Our combined expertise will not only help IFF MAGIC Japan evolve quickly to meet the dynamic needs of the Japanese market, but will provide a new platform for UBM Fashion’s global customer base to find new business partners and brands in Japan as well.”

He added that the show currently caters to Japanese and international men’s and women’s brands and “that will remain the same. We anticipate over time that many of our U.S. customers will have an interest in exhibiting at IFF MAGIC Japan, but that will not be our initial focus.”

Japan is the third-largest fashion market in the world after the U.S. and Europe. This will mark the country’s first truly interna-tional trade show for the fashion industry, according to UBM.

The show will showcase Japanese fashion brands and designers as well as companies from around the world.

JFW-International Fashion Fair is orga-nized by Senken Shimbun Co. Ltd., pub-lisher of Senken Shimbun, the Japanese-lan-guage daily newspaper for the fashion industry, and an English version called The Senken, which is published quarterly.

MAGIC is held in Las Vegas every Feb-ruary and August. The next edition will be Aug. 15-17.

The deal to launch a MAGIC show in Tokyo comes only a few days after UBM’s U.S. division revealed that it had acquired Business Journals Inc. for $69 million in cash. The deal brings together UBM’s shows, including WWDMAGIC, Project and Coterie, with BJI’s consortium of events. These include MRket, AccessoriesTheShow, EDIT, Fame, Moda and Stitch.

BUSINESS

MAGIC to Partner on Japanese Trade Show

MAGIC in Las Vegas.

Procter & Gamble Co. products

4 27 APRIL 2016

● Team U.S.A.’s official Closing Ceremony uniforms were designed by Polo Ralph Lauren.

BY JESSICA IREDALE

The countdown to the 2016 Summer Games in Rio is on — specifically, it’s 100 days until the Games begin on Aug. 5. To mark it, the U.S. Olympic Committee and Polo Ralph Lauren, the official outfitter of the U.S. Olympic and Paralympic teams, five games running, are today unveiling Team USA’s Clos-ing Ceremony apparel. (The Opening Ceremony uniforms are unveiled closer to the Games.)

“Showing the Closing Ceremony apparel first is the tradition with the Olympics,” said David Lauren, execu-tive vice president, global advertising, marketing and communications. “It starts to build energy because you have a visual of what the team and the spirit of the team will look like.” To that end, the men’s and women’s uniforms include a red, white or blue button-down shirt with the Polo pony detail worn over a striped T-shirt and chino shorts. For accessories, there are boat shoes in red, white and navy, striped cotton bracelets and a repp-stripe belt. Asked if there was any Brazilian-inspired flourish to the look, Lauren said that the Closing Ceremony outfits tend to be more classic than the Opening Ceremony and Villagewear collections.

“We’re always amazed when all of a sudden there are 600 or 800 athletes, depending on the Games, and they’re all walking in Ralph Lauren together,” said Lauren. “That’s when the clothing takes on power. We have to make sure it has a simplicity and graphicness that will resonate on television, in publica-tions and on the Internet.”

The company also had to make sure that the fact that all the athletes’ uniforms are 100 percent Made in America resonates after the controversy surrounding the 2012 London Games, when a political and media brouhaha ensued after it came to light that the Team U.S.A. uniforms were manufac-tured in China. For the Rio Games, Ralph Lauren has contracted more than 40 U.S. manufacturers, some of which it works with on other, non-Olympic products, to produce the Opening and Closing Ceremony uniforms. All of the official uniforms for the athletes are made in America, though the Village-wear Team U.S.A. Collection is sourced globally — including numerous U.S.-based manufacturers.

Among the American manufacturers producing the official uniforms are Brooklyn, N.Y.-based jewelry company Scosha; Rochester, N.Y.-based Hickey Freeman, which employs 450 people, and Lewiston, Me.-based Rancourt & Co., which is lasting and sewing the boat shoes by hand.

“We want people to know the story

and what the work has been and how we have listened and learned [after the 2012 games],” said Lauren. “We’ve always made stuff in America but per-haps we never highlighted it appropri-ately. Certainly when we’re dressing the athletes on the world stage, hav-ing the uniforms made in America is important.”

On the heels of the 2012 manufac-turing upset, six senators — Robert Menendez (D., N.J.), Frank R. Laut-enberg (D., N.J.), Bob Casey (D., Pa.), Charles Schumer (D., N.Y.), Kirsten Gillibrand (D., N.Y.) and Sherrod Brown (D., Ohio) — introduced the Team U.S.A. Made in America Act of 2012. The legislation proposed that the United States Olympic Committee require the athletes’ official uniforms to be sewn or assembled in the U.S. It also called for the use of fabrics formed and cut in the U.S. or knit-to-shape components from yarns wholly formed in the U.S. The bill did not pass, but Schumer has remained a voice for Made in America, and more specifically Made in New York initiatives. He personally wears Hickey Freeman.

“I commend Ralph Lauren for select-ing Hickey Freeman as one of their manufacturing partners to produce this year’s Ralph Lauren-designed Team U.S.A.’s Olympic uniforms,” Schumer told WWD in a statement. “When it comes to dressing our Olympic Team ‘Made in America’ means ‘Made in Rochester.’ Hickey Freeman and Ralph Lauren joining forces to produce Team U.S.A.’s apparel is truly a match made in heaven. This partnership, which will start with Hickey Freeman workers making the shorts for the closing cer-emony games, will not only guarantee our Olympians have the best uniforms to wear, but also continues a bright future of stability and expansion for manufacturing in Rochester.

“Year after year, I’ve committed to making sure this company can remain a strong force in Rochester — because we all know that these good-paying, mid-dle-class, American manufacturing jobs are hard to come by. We all know that, when allowed to compete on a level playing field, top-notch U.S. businesses like Hickey Freeman and Ralph Lauren Corp. will win out. So I could not be more pleased that the growth we have worked for is taking shape — for the whole world to see.”

Lauren noted that the United States is one of the few countries in which the Olympic Team is not govern-ment-funded. The USOC contracts companies to support athletes. All of the Team U.S.A. uniforms are donated to the athletes by Ralph Lauren Corp. The official uniforms are available for sale to the public, and the Closing Ceremony apparel will be available for purchase today on ralphlauren.com.

Prices for Team U.S.A. Ceremony apparel range from $79.50 for a T-shirt to $98 for a belt and $350 for the boat shoes. A portion of the proceeds from the sale of the apparel will go to benefit the USOC.

FASHION

Ralph Lauren Unveils 2016 Olympic Closing Ceremony Uniforms

Olympic swimmer Haley Anderson.

Olympic freestyle wrestler Jordan

Burroughs.

A sketch of Team USA men’s Closing Ceremony uniforms.

27 APRIL 2016 5

● The pop icons are collaborating on a Love Bravery collection to support causes they champion.

BY DAVID MOIN

They have performed together on the Grammys. Now Lady Gaga and Sir Elton John are taking the Macy’s stage.

The pop icons are teaming on a lim-ited-edition line of clothing and acces-sories called Love Bravery which will be sold exclusively beginning Saturday on macys.com and in about 150 Macy stores beginning May 9.

Twenty-five percent of each pur-chase will support the charities championed by the celebrities, the Born This Way Foundation and the Elton John AIDS Foundation. The message behind the Love Bravery col-lection is to “inspire compassion and combat prejudice,” according to the performers.

The line, created in collabora-tion with Lady Gaga’s sister Natali Germanotta and designer Brandon Maxwell, strives to reflect the artists’ music and style, with bold prints and colors and edgy looks. There are crop tops, sleeveless T-shirts in black-and-white, heather sweatshirts with tonal graphics, tops with metallic lettering and oversized scarves with piano key prints and interpretations of Lady Gaga’s face.

There’s also a range of novelty items like Neoprene backpacks that say “Love;” enamel pins and patches in the shape of moto jackets, electric guitars, microphones, platform shoes and of course, Lady Gaga’s claw, and clutches shaped as sunglasses, pia-nos and hearts. The collection also includes outerwear, beanies, key-chains, speakers, water bottles and skateboards.

Everything in the collection is under $100, with prices from $12 to $99. Apparel will retail from $24 to $59; accessories, $12 to $59. Macy’s is set-ting up Love Bravery shops, primarily on its main floors for good exposure, and the timing of the shops coordi-nate with Macy’s annual American Icons campaign, saluting American products.

“It’s an honor to team up with Sir Elton John to create this line with Macy’s,” Lady Gaga said. “We need to make the world a kinder and braver place where men and women every-where are empowered to live with compassion. That’s what Born This Way Foundation is all about, that’s what the Elton John AIDS Foundation is all about and that’s what Love Brav-ery is all about.” Gaga will make an appearance at Macy’s Herald Square but officials couldn’t confirm a date yet.

“I love the idea of fusing who you are on the inside — your passions and dreams — with what you wear on the outside,” John said. “Love Bravery is about the compassion on the inside to understand someone’s fears, and the bravery on the outside to stand up for them, and for yourself: to accept others for who they are and to be who

you want to be. It’s what I‘ve tried to do in my life, my career and with the Elton John AIDS Foundation, and it’s a passion Lady Gaga and I share. So I’m thrilled we are collaborating on this project and delighted Macy’s understood our dream to connect with people this way.”

“In addition to being deeply talented musical artists, Lady Gaga and Sir Elton John are champions of self-love, courage, empathy and kindness, and Love Bravery represents all of those tenets,” said Martine Reardon, Macy’s outgoing chief marketing officer. Reardon characterized the line as “fun and bold” and “standing for something so meaningful and important...The work they do through Born This Way Foundation and the Elton John AIDS Foundation is invaluable and truly changes lives.”

While being cause-related, Love Bravery furthers Macy’s strategy to build up its stable of celebrity-backed merchandise collections. Earlier this month, the store launched Kelly Ripa Home, a collection of bedding sets, furniture and area rugs. Macy’s celeb-rity lineup also includes merchandise from Jessica Simpson, Sean John, Ariana Grande, Thalía and Martha Stewart. The retailer no longer sells Donald Trump merchandise.

Macy’s said Love Bravery is the first in “a series of activations which are planned for the coming months to make people feel proud of who they are.” Love Bravery will be sold through Aug. 20.

John created EJAF over 20 years ago, first in the U.S. in 1992 and then in the U.K. in 1993, to fight the stigma and spread of HIV and AIDS and help people living with the ailments. Since then, the two organizations have raised over $350 million and reached over 150 million people across four continents, including funding some 1,500 programs providing HIV tests to over 20 million people, and treatment prevention for more than 800,000 pregnant woman living with HIV so that they could protect their babies from the virus. The foundation also prioritizes those who are highly vulnerable to HIV and the stigma that surrounds the disease in many parts of the world, such as men who engage in male-to-male sex, people who use drugs and people who sell sex.

The Born This Way Foundation, led by Lady Gaga and her mother Cynthia Germanotta, was founded in 2012 to support the wellness of young peo-ple and empower them “to create a kinder and braver world.” Born This Way works with more than 50 non-profit organizations and has connected more than 150,000 young people with services and programing in their communities. The Foundation has also partnered with the University of Nebraska-Lincoln, the National Council for Behavioral Health and the National Association of School Psychologists to collect data from more than 2,500 young people. This research, pre-sented before the American Psycholog-ical Association, raised awareness of how young people view mental-health services and delivery methods.

RETAIL

Lady Gaga and Sir Elton John Join Macy’s Celebrity Lineup

Lady Gaga and Sir Elton John

Rendering of the Love Bravery Shop at Macy’s.

Love Bravery Skateboard, priced $99.

Love Bravery clutch, priced $59.

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Even the head of the fashion jury, Paco Rabanne’s creative director for women’s wear Julien Dossena, is mulling a move into men’s wear soon.

“It was one of the most beautiful editions. After the 30th edition that was magic and royal with Chanel, this one was full of energy,” asserted festival founder Jean-Pierre Blanc. “Every-one needs to find their own path. The beauty of the fashion sector is that there are plenty of options.”

Consider 34-year-old Finnish finalist, Rolf Ekroth, who started his career as a social worker before becoming a profes-sional poker player before enrolling in Helsinki’s Aalto University and making his way to the festival with a men’s wear collection inspired by golf.

Blanc said he has never seen so many recruiting executives at the festival. Chantal Gaemperle, LVMH’s group executive vice president for human resources and synergies director; Guil-laume de Piédoüe, cofounder of Eyes on Talents, and Mathias Ohrel, founder of m-O, a recruitment firm in the luxury sector were among them.

Indeed, the festival underlined that the fashion sector offers multiple career options, as shown by the paths of for-mer winners and opportunities opened by the digital revolution.

It marked a comeback to the festival for Dossena, who won awards there a decade ago. In the 2006 promotion were also Anthony Vaccarello, tapped as Saint Laurent’s creative director earlier this month, and Tuomas Laitinen, a designer who took over the reins at Aalto’s fashion department in 2006 and catapulted the school’s international reputation.

Luxury firms flexed their spon-sorship muscles at the festival. New patrons including celebrity hair stylist John Nollet and the online photo lab Memorieslab joined the bandwagon of patrons. The festival’s major sponsors already include Chanel, LVMH Moët Hennessy Louis Vuitton, Première Vision, Chloé, Galeries Lafayette, Mer-cedes-Benz, Swarovski and Petit Bateau, the latter having just renewed its com-mitment to the festival for three years.

Blanc said he plans to introduce an accessories prize next year and a new photography prize dedicated to still life, which would be “a bridge between art and fashion photography.” Another axis of development is The Formers show-room, a platform for past winners, to better accompany them in their careers. “Once they have mined all the opportu-nities that the festival offers them, other prizes such as the ANDAM award and LVMH prize take over,” Blanc said.

“Hyères is more beforehand,” echoed Pierre-Yves Roussel, chief executive officer of LVMH’s fashion division, who’s on jury duty for the LVMH prize and ANDAM award. “Designers here can typ-ically apply for the LVMH prize in two or three years from now.”

“It’s a nice selection,” the executive said of the 10 finalists for the Hyères competition this year. “The level of execution impressed me. It’s interesting to see the paths of the former winners: they really shows that it’s a process to conceive your project, to mature it cre-atively and have the necessary funds to further develop it.”

“Young creation has always been part of vocabulary and it’s more and more.

We continue to challenge ourselves,” said Tomoko Ogura, Barneys New York senior fashion director, also a jury mem-ber. Barneys has been stocking Dosse-na’s creations for Paco Rabanne since his second collection at the house. “The feedback is very positive. The reason we stock him is because he had a distinct point of view.”

Despite its laid-back appearance — with the fashion crowd lounging on the lawns in their statement sunglasses at the landmark Villa Noailles — the festival has evolved into a think tank where the future of fashion is discussed at round tables organized by the French fashion’s governing body.

At one on digital, there were contribu-tions from students of the new IFM Start program, which is done in collaboration with 42, a French computer program-ming school and incubator created and funded by entrepreneur Xavier Niel. For example, Pia Hazoume, a student from IFM, teamed up with a data scientist

from 42 on algorithms to predict what consumers will buy. “Big data is replac-ing trends,” said Hazoume.

“The model used to be Pierre Bergé and Yves Saint Laurent, an executive and a creative. With the digital revolu-tion we’ll see more and more fashion companies being the brainchild of a fashion profile and a programmer,” predicted Laurent Raoul, a professor at the French Fashion Institute.

“If you want to attract the best talents, putting sustainability at the core of your company is a key factor,” said Marie-Claire Daveu, Kering chief sustainability officer at a round table on sustainability, which also included Carlo Capasa, the president of Italian Cham-ber of Fashion.

During a master class, Dossena said he’d like to introduce men’s wear pieces to Paco Rabanne’s collections and also to revive his Atto label that he had put on hold when he got the opportu-nity at Paco Rabanne. “Now that the

foundation for Paco Rabanne is laid, it’s something I would like to do,” he said of Atto, launched in 2013. He told WWD that he’s aiming at early 2017 for that. In just two seasons, his brand was stocked in around 100 doors including Dover Street Market, Saks Fifth Avenue and Printemps. “I could finance the first season and then it self-financed itself,” he said.

That’s something Amanda Svart, a 28-year old Swedish graduate student at the Royal College of Art in London, would like to achieve, having won the audience award with her draped silhou-ettes. “When I graduate, I want to push this collection to another level but it’s a lot of struggle in London. Otherwise, I’ll apply for a job for a house,” she said.

It’s not a bed of roses for young designers, stressed designer Pierre Hardy, who heads up Hermès’ shoes and was a jury member. “Many students have to deal with indigence. Without the grants, quality work is out of reach for them,” he said.

Thanks to Swarovski’s support, the Finnish candidate Ekroth could use 22,000 beads from the crystal maker in one of his creations. Annelie Schubert, the 2015 Grand Prize winner, impressed with her new collection she could produce with the access to Chanel’s specialty ateliers.

“I had already launched my brand when I competed for the ANDAM. It was the first time they launched the accessories prize, and it really helped me,” recalled Charlotte Chesnais, 2015 winner of the ANDAM Accessories prize and a Hyères 2016 jury member. The 30-year-old Parisian designer who worked with Nicolas Ghesquière at Balenciaga, where she met Dossena and Hardy, presented her new collection in March at Colette. She sells her creations to around 50 doors.

Satu Maaranen, a 2013 Hyères winner and women’s wear designer for Marime-kko, has recently worked on an exten-sive line of products for Target, of over 200 pieces, ranging from women’s wear, to children’s wear and gardening tools.

Men’s Wear GrabsSpotlight in Hyères CONTINUED FROM PAGE 1

Julien Dossena

Grand Prize winner Wataru Taminaga and models backstage at the Hyères show.

27 APRIL 2016 7

● Fashion firms are analyzing whether price increases will result from the termination of a Chinese export subsidy program.

BY KRISTI ELLIS

WASHINGTON — Brands and retailers are analyzing whether price increases will result from the termination of a Chinese export subsidy program in the textile, apparel and footwear sectors, although executives said it’s too early to gauge the full impact.

Industry trade groups said they have received several calls from companies raising concerns in recent days following China’s decision to eliminate the program, which the U.S. had challenged at the World Trade Organization last year. Trade experts said China likely chose to settle and not wait for a WTO dispute panel decision because it wanted to avoid a lengthy and costly litigation and saw a memorandum of understanding as a face-saving way to end the dispute.

American fashion firms have faced long-term retail price deflation and have lost pricing power for several years, but China’s cheap manufacturing costs helped offset some of the pressure on brands’ margins. But as China’s wages and other costs have risen in recent years, brands have been forced to begin to look to other, lower-cost countries such as Vietnam and Bangladesh.

China agreed to eliminate an export subsidy program earlier this month that provided $1 billion over three years to com-panies in seven industrial sectors and 179 industrial clusters as part of a memoran-dum of understanding with the U.S.

According to documents filed by the U.S., several apparel and footwear clusters,

or “bases,” were identified as receiving subsidies, including apparel bases in Jiangsu province and Shanghai; a sweater base in Guangdong province; cashmere clusters in Hubei province and Mongolia; a women’s shoe base in Sichuan province; an eyeglasses base in Jiangxi province; men’s clothing, casualwear and necktie products cluster in Zhejiang Province in Ningbo, and textile bases in several provinces.

Chinese apparel, textile and footwear suppliers received subsidies for a wide range of things, from IT services to product design services to employee training, according to the U.S.

In 2012, 16 of the estimated 40 “demon-stration bases” or clusters of companies in the three industry sectors allegedly received subsidies accounting for 15 percent, or $33.25 billion, of China’s total exports to the world in those sectors, according to the U.S. Trade Representative’s Office.

About 20 percent of China’s total apparel, textile and footwear exports are destined for the U.S., trade officials said.

U.S. officials said the subsidies were provided to clusters of companies in 29 of China’s largest industrial provinces and municipalities, including Guangdong, Shandong, Sichuan, Jiangsu, Beijing and Shanghai.

The key question now is whether Chinese suppliers benefiting from the subsidies will absorb the extra costs or try to pass them on to overseas buyers in the form of higher prices.

Julia Hughes, president at the U.S. Fash-ion Industry Association, said the concern is a hot topic.

“People want to know what the impact will be and whether prices will rise, whether the subsidies made a difference from a costing perspective,” she said. “It’s early days. We haven’t heard from anyone

that they have seen price increases linked to the elimination of the subsidies. That doesn’t mean there won’t be any, but there was not an immediate reaction in terms of higher prices.

“The assumption should be that there will be upward pressure on prices. What we’re talking about here are subsidies that were basically for back office and for train-ing, so it may take awhile for that to work its way into higher price quotes if that does happen,” Hughes added.

“We’ve actually had members call and ask us [whether there will be price increases],” Rick Helfenbein, president and chief executive officer of the American Apparel & Footwear Association. “Our belief, and we’re pretty strong about this, is it’s not going to affect prices at all.

“The reason is China has always func-tioned on the basis of supply and demand,” Helfenbein said. “Right now, demand is down. They have a lot of supply. Very often they will adjust their prices to make it more meaningful to buyers, so that they don’t lose a buyer. That’s just the reality of the industry.”

Bud Konheim, ceo at Nicole Miller, said, “I don’ t think it’s affecting anybody right now. We design for J.C. Penney and they would let us know” if they saw price increases.

Konheim said Nicole Miller does a small amount of business in China, in the 1,000-unit range per style.

“It’s the guys that do volumes of 50,000 or 100,000 unit lots” that would feel the impact, he said, adding that any prices negotiated now would not get paid for another three to six months out.

David Spooner, a partner at Barnes & Thornburg LLP who was the chief textile and apparel negotiator at USTR from 2002 to 2006, said the subsidies were small in the scheme of China’s overall global trade.

“Doing a back-of-the-envelope calculation on how much the subsidies benefited the textile, apparel [and footwear] sector, you come out with about $260,000 a year for companies in that cluster,” Spooner said, assuming that the distributions were equal in all seven sectors. “That’s not pocket

change but not world changing, either.“Export subsidies are terrible,” Spooner

added. “They distort trade and USTR did a great job in calling China out on them and quickly got China to back down. But we shouldn’t exaggerate the impact on trade. China exports tens of billions of dollars of apparel to the U.S. [and rest of the world] every year and the subsidies amounted to a drop in the bucket.”

Economists said there were several mitigating factors that would prevent price increases.

“They [Chinese suppliers] are going to try, but they are not going to be able to raise prices,” said Chris G. Christopher Jr., director of consumer economics at IHS Global Insight. “Part of the reason is the currency should get weaker this year and they also have to worry about competitive effects — what is coming out of Vietnam and Indonesia.”

Christopher said he does expect China’s currency to devalue in a “gradual sense.”

“Prices are going down for imports from China for goods for the most part because of the weakening of their currency,” which he tied to a “flight of capital out of China.”

All in all, Christopher said he does not expect U.S. brands and retailers to take a big hit on prices.

“Fundamentally what has been going on [related to lower export prices] has nothing to do with subsidies,” he said. “It has more to do with exchange rates. If you look at consumer goods import prices, the core has been in negative territory. Nothing tells me that stuff from China should be getting more expensive for the American con-sumer. In fact, it should be getting cheaper for awhile.”

Tu Packard, senior economist at Moody’s Analytics, said: “When I look at the magni-tude of China’s imports to the U.S. in these areas, it is difficult to see that that amount of subsidies was such a big deal. Things like China’s exchange rate and labor costs are much more significant factors than the sub-sidies. While some Chinese suppliers may bargain for a better price, using the removal of subsidies as an excuse, the overall impact will likely not be significant.”

THE MARKETS

Concerns Over Potential Price Increases in China

● The British high street is looking like a graveyard with a second big men’s wear retailer, falling into the British equivalent of Chapter 11.

BY SAMANTHA CONTI

LONDON — The British high street is looking more and more like a graveyard with a second heritage retailer, men’s wear brand Austin Reed, collapsing into administration just 24 hours after British Home Stores did the same.

Austin Reed, which was founded in 1900, had already been undergoing a turnaround at the hands of distressed retail specialists Alteri Investors. Alteri had recently taken a stake in the company after advising on its turnaround. The fall into administration, Britain’s equivalent of Chapter 11, leaves 1,184 jobs at risk.

The retail brand that decades ago stood shoulder-to-shoulder with British men’s wear greats such as Burberry, Aquascutum and Daks fell victim to a combination of fast-changing consumer habits, the shift to omnichannel retailing and an overarching crisis in the formal suiting arena that has seen men favor fashion-forward, sportier shapes and trans-seasonal fabrics over tradi-tional, tailored investment pieces.

On Tuesday, administrators from Alix Partners, the international business advisory firm, said they were called in by Austin

Reed’s directors due to “cash flow difficul-ties arising from challenging retail market conditions.”

The administrators confirmed that Austin Reed would continue to trade while Alix explores “all possible options” for its future, including a sale of all or parts of the business.

“Our priority now is to work with all stakeholders and determine the optimum route forward for the business,” said Peter Saville, a joint administrator. “Austin Reed is a well-regarded and iconic brand and there-fore we are confident that it is an attractive proposition for a range of potential buyers.”

Austin Reed has 100 standalone stores and 50 concessions throughout the U.K. and Ireland. As part of a turnaround plan set by Alteri, the company had closed about 15 percent of its stores over the past year.

Founded by Austin Leonard Reed, the group began making made-to-measure clothing and later moved into men’s ready-to-wear. Austin Reed also owns the women’s wear labels Viyella and Country Casuals, which will be sold along with the rest of the group.

The flagship at 100 Regent Street features a dedicated casualwear floor, a 60-foot wall of shirts and two floors of tailoring, including made-to-measure and bespoke suits. It also sells through more than 1,000 retail outlets worldwide, and has nearly 30 wholesale clients in the U.S. alone. The now-defunct Hartmarx Corp. held the U.S. license for the English label for more than 30 years, pro-ducing both men’s and women’s wear.

According to the latest accounts filed at Companies House, the official registry of U.K. businesses, Austin Reed had a profit of 1.8 million pounds, or $3 million, in the year ended Jan. 31, 2015.

Turnover in the period was 44.4 million pounds, or $72.8 million. All figures have been converted at current exchange for the periods to which they refer.

Austin Reed had been battling a series of headwinds and industry observers inevitably drew parallels between its demise and that of BHS, the general merchandise retailer that ultimately folded after failing to find the funding for its day-to-day operations.

Other problems persist: The U.K. pensions regulator is now looking at whether the former owner of BHS, Sir Philip Green and the current owners should be forced to put more money into the retailer’s pension fund which, as reported, is suffering from a 571 million pound, or $822 million deficit.

“Two iconic British high street brands heading for administration in two consec-utive days feels like a hammer blow for the high street as 204 years of combined retail-ing history face being wiped out,” Simon Cope-Thompson, partner at Livingstone Partners, told WWD. “Like BHS, Austin Reed has struggled to keep pace with a fast-paced, highly competitive market increasingly dominated by online retailers. By failing to embrace digital and modernize its stock range, Austin Reed has hemorrhaged market share to more nimbler rivals.”

Cope-Thompson, however, believes Austin Reed could live again: “It is a well-known

brand with potential for rejuvenation via transformation. The administration may of course result in the emergence of a restruc-tured/streamlined group owned by Alteri Investors. All refinancing options must be rapidly considered by Austin Reed’s manage-ment and its key stakeholders.”

Austin Reed had other problems on its hands, including a waning appetite for tradi-tional tailored men’s clothing and the rise of contemporary and trans-seasonal collec-tions. Major British department stores have also seen their tailored and formal offers suffer, as have brands including Hugo Boss, Brioni and Burberry. In its first-half trading statement issued last November, Burberry said that sales of women’s and men’s wear were flat in the six-month period, with men’s sales dipping 1 percent on an underlying basis.

London’s specialty and department stores, meanwhile, are rapidly changing the way they buy to accommodate the needs of the consumer. Harrods is increasingly tailoring its offer to match its male customers’ buy-now-wear-now demands, with visual mer-chandising and mannequin styling changed on a daily basis. Liberty’s fashion buying and merchandising director Scott Tepper said his store has been seeing “a very distinct change in our customers’ shopping patterns” and therefore decided to take some calculated buying risks to reflect them.

“We’ve learned there is a substantial customer block that wants newness in every-thing, from overcoats to chunky knits to cold-weather accessories when the weather warrants them — and not before — but he’s also bored by carryover fall styles,” said Tepper.

MEN’S

Austin Reed Follows BHS Into Administration

8 27 APRIL 2016

● The collection was partially produced by displaced women in Malaysia and Afghanistan, and a portion of proceeds will benefit the U.N.’s refugee agency.

BY MISTY WHITE SIDELL

Olympia Le-Tan and Uniqlo have linked on a limited-edition collaboration of T-shirt and tote designs, partially pro-duced by displaced women in Malaysia and Afghanistan.

While already available in Japan, the collection was released exclusively at Colette in Paris on Monday and is slated for wider international distribution at Uniqlo stores beginning next Monday.

Each piece is inspired by memorable moments in Le-Tan’s design history — including fall 2014’s slinky ode to a deck of cards and spring 2015’s schoolhouse overture. The eight T-shirt designs are both screen-printed and embroidered — some to mimic Le-Tan’s cheeky hand-bags and others transposing drawings by the designer’s illustrator father, Pierre. “We sort of did a best-of,” Le-Tan told WWD of the collection’s intent.

She’d already begun work on T-shirt designs for the Fast Retailing Co. Ltd., subsidiary when a Uniqlo representative

asked her if she would like the collec-tion to include a tie-in with UNHCR, the U.N.’s refugee agency.

“We first starting working on T-shirts and then someone who specifically works in that division at Uniqlo asked me to participate in the program. I asked for it to support women specif-ically and selected a few geographical regions that are good with embroidery,” Le-Tan said.

The collection grew to include a tote bag and key chain memento, incorporat-ing an embroidered logo “OLT” patch, crafted by the women.

“With the time we had, we did what we could according to their skills,” explained the designer. The key chains were only produced in a very limited quantity, but about 2,000 tote bags — inspired by Le-Tan’s early milk carton purses — will be distributed worldwide.

Fast Retailing broke ground on its partnership with UNHCR in 2011 and in November 2015 pledged $10 million in sustained emergency aid relief over a three-year period to the cause. However, the Uniqlo x Olympia Le-Tan collection is the first case in which the company has directly supported career develop-ment among displaced individuals.

Designs retail for about 15 euros, or $16.97 at current exchange. Full pro-ceeds from tote-bag sales and a portion of T-shirt proceeds will be donated to UNHCR.

To mark the collaboration’s release, Le-Tan has reissued the collection items that inspired each Uniqlo design — including the milk carton and chalk-box bags, which are available for pre-order on her Web site. “When [the collabo-ration] first came out in Japan, I kept seeing young girls posting pictures on Instagram and thought it would be nice for them to have the bag to match,” Le-Tan said.

FASHION

Olympia Le-Tan, Uniqlo Collaborate on T-shirt Line

translates to the reduction of its global staff, accelerated depreciation mostly with older information systems, replacement of technology infrastructure changes and international supply chain and office location optimization. That’s on top of the company’s transformation plan initiatives noted two years ago that have already been implemented or are underway. In total, the initiatives are expected to enable the group to reach its goal of a 20 percent operating margin for the Coach brand in fiscal year 2017. In the aggregate, the company expects to incur pre-tax charges of $65 million to $80 million, beginning in the fourth quarter of fiscal 2016 and for the charges to be completed by the end of fiscal 2017.

In total, over 300 positions worldwide are being eliminated, which is about a 10 percent decrease in the global corporate staff or a 2 percent reduction of Coach’s total workforce.

Victor Luis, chief executive officer, said, “These actions will allow us to emerge as a brand-led company with fewer layers, larger spans of responsibility and a consistent global voice across mer-chandising and marketing.” He said in a telephone interview that the focus in the last few years have been about updating the Coach brand, and that the next stage

is about “transforming the organization, moving from an accessory retail model to a global brand retail model.” Whereas before there were merchandising and marketing teams in different pockets of regional growth, Luis said, “The reality is that what resonates globally is not the operational part of retail. What resonates is the consistency of the vision. We are streamlining our teams [because we can] drive consistency and scale and go to mar-ket much more quickly with one single vision.”

Luis also said that being leaner will help the company react quicker to opportunities that may come up. The use of cash and the company’s capital allocation strategy involves acquisitions

“when it makes sense,” Luis said. While he has said previously that making sense involves where Coach can add value in the supply chain side of the business, this time the ceo detailed the three focus categories for Coach: handbags, footwear and outerwear.

“Outerwear is a category we believe in for the long term,” Luis said. While he said there were no targets in mind, the suggestion is that outerwear is a category where Coach could make an acquisition to grow that business if the right opportu-nity became available.

As for its third quarter results for the period ended March 26, Coach reported a 27.7 percent increase in net income to $112.5 million, or 40 cents a diluted share,

from $88.1 million, or 32 cents, a year ago. On an adjusted basis, net income was $124 million, or 44 cents a diluted share. Net sales rose 11.2 percent to $1.03 billion from $929.3 million. Wall Street analysts were expecting 41 cents on sales of $1.02 billion.

Luis noted that the quarter represented a “return to growth for the Coach brand,” adding that the results were against the backdrop of volatile tourist spending flows and macroeconomic and promo-tional headwinds.

While retail and outlet stores in North America showed sequential improvement, it was the international businesses that posted strong growth on a constant cur-rency basis, highlighted by double-digit increases in Mainland China and Europe. The company said there were sales gains in Japan as well.

Luis also confirmed, “We are on track to return to positive comps in North America in the fourth quarter and to achieve an inflection in our profitability.”

As for handbags, crossbodies and smaller bags continue to trend, but “we see some opportunity for the consumer in our larger bags,” a category that Luis said is a plus for the company due to its higher prices.

He also said that the company was “pleased” with the overall contribution of Stuart Weitzman during the quarter, and expects to complete the close of the pur-chase of the brand’s Canadian distributor in the fourth quarter. Luis said having direct ownership would help the company drive growth in the channel.

Shares of Coach traded up 4.2 percent to close at $41.86 in Big Board trading.

Coach Shakes Up Management, Cuts 300 Jobs CONTINUED FROM PAGE 1

A look from the Uniqlo and Olympia Le-Tan collaboration.

Victor Luis

27 APRIL 2016 9

● The Internet star and model were photographed for a new all-white Calvin Klein Jeans lineup.

BY JESSICA IREDALE

Move over Kendall and Biebs. Calvin Klein Jeans has two new young, fresh faces — one an “Internet personality,” one a model — to front its all-white capsule collection, which launches today on calvin-klein.com.

Faces first: Stella Lucia, the 17-year-old Austrian model, who has appeared in Givenchy, Chanel and Alexander Wang campaigns, was cast alongside Cameron Dallas, the 21-year-old from Chino, Calif., who rose to mass Internet fame on Vine. He’s parlayed his social media sensation into some film and TV work, including the upcoming “Neighbors 2: Sorority Rising.” Dallas has 11.6 million Instagram followers; Stella Lucia has 38,100.

They were shot by photographer Jack Pierson in Malibu. The global campaign, produced under the creative direction of Calvin Klein Inc.’s in-house creative agency, depicts Dallas and Stella Lucia beachfront in the capsule’s white knit street-inspired gear, most of which bears

the brand’s tone-on-tone heritage CK logo. There are tanks, Ts, a cropped hoodie T-shirt and drawstring mini shorts for women, and a hoodie, long-sleeved T-shirt and drawstring shorts for men. The dis-tressed ivory jeans and logo shower slides in the campaign are part of the Calvin Klein Jeans seasonal collection and are not specific to the capsule. The collection retails for $78 to $128, and following the launch on calvinklein.com, it will begin wholesaling in early May. The campaign will appear on Calvin Klein Jeans’ e-com-merce and digital platforms.

The capsule was designed by Kevin Carrigan, global creative director of CK Calvin Klein, Calvin Klein Jeans and Calvin Klein White Label. He remains in his role at Calvin Klein Inc. after the company last week disclosed plans for a new global strategy that would unify all Calvin Klein brands under one creative vision, resulting in the dismissal of Francisco Costa and Italo Zucchelli and further fueling spec-ulation that Raf Simons might be headed to the company as its new overall creative director.

Last fall, CK Jeans launched a similar project, the Black Series Limited Edition capsule, featuring cult male model Lucky Blue Smith and his sister Pyper America Smith.

FASHION

Cameron Dallas,Stella Lucia New FacesOf CK Jeans Capsule

● The concept store linked with Pepsi for an emoji-filled retail fest.

BY RACHEL STRUGATZ

Concept store Story has teamed with Pepsi for its latest iteration, “Have Fun,” an emoji-fueled retail experience.

The launch Tuesday came in tandem with the U.S. rollout of the PepsiMoji campaign, which incorporates more than 200 proprietary emojis and the dedicated hashtag #SayItWithPepsi.

“Usually we’re telling stories and adding editorial commentary, but in this case it’s more of a snapshot in time of a trend in a moment,” Story founder Rachel Shechtman said of her store’s “Have Fun” concept, which will run through May 22. “When you think about it, Bloomingda-le’s launched emojis, Sony is coming out with a movie about emojis — everyone is talking about emojis.”

Pepsi bottles adorned with PepsiCo’s own proprietary emojis are all over the New York store, which prides itself on having the mentality of a magazine and changes themes every one to two months. The concept’s decor – a mix of brightly colored, emoji-themed product from about 60 vendors — is paired alongside interactive elements such as a Story Gets Emoji Makeover With Pepsi temporary tattoo studio; a station by YR London that helps consumers make their own T-shirts or iPhone cases printed with Pepsi’s emo-jis, and a photo booth where guests can print and e-mail a four-photo series with the option to decorate with PepsiMojis of

their choosing.During a tour of the store, Shechtman

said the carefully selected product ranges from direct to consumer e-commerce brand BucketFeet, which sells sneakers created by different artists, to Terez’s best-selling emoji print leggings. High-lights include the PVC and polyester hand-bags and backpacks from Taipei-based accessories brand JumpFromPaper that retail for $110 to $135 and several styles of Living Royal socks.

A typical four-week sponsorship at Story costs $400,000, with holiday concepts costing twice that, according to Shechtman, who works with both small businesses and Fortune 500 companies.

“We’re taking online off-line using different merchandising strategies,” she

said. “If we’re going to live in an environment inspired by emojis, it’s about fun. We layered in product and experience. Branded content is top of mind for everyone, and we’re having living, branded content — which to me has been the hypothesis of retail media. People are expressing them-selves through another brand; it’s self expression.”

Story is also designing exclusive product using PepsiMoji’s that will hit the store in mid-May. Shechtman said this will be a test to see how the range can be expanded at scale with other partners.

Carlos Saavedra, senior director, cre-ator of culture strategy and innovation at PepsiCo, said the sponsorship is a way to get new people to discover the brand.

“Retail is changing super quickly and, for us, this merge is the idea of an editorial part of a magazine with a retail conversation,” Saavedra said. “It’s a way for people to have fun and engage with the brand [in a way] that goes beyond the bottle. This was an opportunity to tell the story of Pepsi…and take online and emojis — which were born online — and take it off-line. It’s a perfect mix of on and off-line.”

In addition to the bottles and a series of licensed product emblazoned with PepsiMojis, the company created a series of 100 five-second ads that will live air online and on TV.

A PepsiMoji app will launch on Friday so smartphone users can incorporate the emojis into their everyday mobile com-munication and a line of emoji jewelry is in the works.

Cassandra Jones, senior vice president of Macy’s Fashion, was among the first to visit Story for the kick off of its new “Have Fun” concept.

Jones said she is both attracted to and draws inspiration from the merging of different businesses — Pepsi and a retail space selling apparel and accessories from up and coming designers, for instance.

“What interests me is that [Shechtman] takes pop culture, a brand like Pepsi and a retail store and brings a very interactive message to life. Regardless of whether it’s wellness or having fun, both feel cultur-ally relevant to me and the consumer and end up being a point of sale,” Jones said, adding that there’s a lot to be learned from retail that breaks out of the tradi-tional selling format.

RETAIL

Story Gets Emoji Makeover

Story teamed with Pepsi for its latest

iteration, “Have Fun,” an emoji-fueled retail

experience.

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Stella Lucia and Cameron Dallas

featured in an ad for the Calvin Klein Jeans

capsule collection.

10 27 APRIL 2016

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● The Amsterdam edition of the premium trade fair was strong on novelties and grew with Why, a boutique branding-only show.

BY PAULINA SZMYDKE

AMSTERDAM — Two questions domi-nated at Kingpins, the premium denim trade show that ended here on Thursday: “What’s new?” and “How much does it cost?”

With technological novelty and new looks governing the fair, mills and denim brands were looking to make sustainabil-ity a viable business.

“There is a positive change in the air,” said Miguel Sanchez, global head of business development for denim and casual wear at Archroma. “2015 was a transitional year. We could feel the reces-sion. People were not willing to invest in premium denim. This year, the mills have more orders. Look around, almost every stand here is launching new collections. And that means they are confident it’s a good investment.”

Among the standouts was Cone Denim’s back-to-the-roots collection of fabrics dyed with natural indigo, grown exclusively for the mill in Tennessee. “We have an exclusive agreement with Stony Creek Colors. And we are trying to make this a scalable business venture with the farmers,” explained Kara Nicholas, vice president of product design and market-ing at Cone, which celebrates its 125th anniversary this year.

Showing off the new gamut of natural shades on its signature selvage qualities, already picked up by Tellason, Nicho-las said the retro look was still a strong trend, spotted also at Bossa. The Turk-ish mill launched the Re-set collection, based on organic vegetable dyes which it applied to organic cotton, Tencel, Newlife as well as recycled cotton left un-dyed, boasting a range of natural colorings instead.

For the first time, Berto took to digital printing to be able to produce smaller quantities. Building on its fashion creden-tials, the Italian manufacturer showcased a new indigo wool, an extra-soft selvage developed for suits that were destined for what it dubbed the “indigo gentleman.”

Elsewhere, visitors gathered under-neath an infrared lamp set up by Invista to promote its new Thermolite infrared technology, which can raise the tempera-ture of a garment by 2 degrees Celsius. “There are special ceramic pigments in the fiber, which absorb energy from the sun and make denim warmer,” explained Jean Hegedus, the company’s global denim director.

A recent study conducted by ICM Research for Invista revealed that 78 percent of consumers were interested in purchasing a performance “winter jean,” which the firm proposed in tandem with its Thermolite Dual Layer technology that traps air within the open spaces of a fabric.

But as Tavex noted, technological inno-vation comes at a cost. The mill came

with an extended offering of its healthy denim line, sporting three new fab-rics: X-Heat, made with recycled coffee charcoal that captures natural body heat; X-Zeox, upped with caffeine and retinol, which sat within the fiber instead of just being applied as a finishing, certified to improve skin elasticity, and X-Fir, a combination of 30 metallic oxides meant to eliminate toxins and increase energy levels. “We always seek to widen our range, but we need to find brands that are willing to invest in communication and marketing,” said Tavex area manager Margot Lopez, lamenting that brands were “not labeling the products sepa-rately, which is a shame.”

Denim brands interviewed at the fair said they chose not to communicate on single products but instead strive to be as sustainable as possible as a company.

“This is an issue. European producers have to be different to defend our mar-ket, but the consumer needs to know,” argued Lopez on behalf of her new collection, which costs 6 euros per meter,

or $6.80 at current exchange, versus her average price point of 4.5 euros, or $5.10, echoing the voices of other mills.

To help buyers navigate through the latest in technology, Archroma together with fiber specialist Lenzing, textile maker Royo and Garmon Chemicals introduced a “road map to rational denim, i.e. garments based on the most efficient use of resources at each stage of production” - from a sustainable fiber to clean dyes and ecoefficient finishings that save water, save energy and reduce waste. “There is a lot of confusion among consumers, but I can tell you the brands are confused, too,” said Sanchez, describing the road map as a source of inspiration for buyers. “We want design-ers to consider sustainability as a core. If a brand comes to us, we can show how, where and by who it can be done, and make it available immediately. Also, sustainability doesn’t necessarily need to cost more, when you can use existing technology,” he assured.

The rational denim collection was housed within Why, launched as an expansion of Kingpins Amsterdam and dedicated to methods of branding denim. “Why do we need Why?” asked its founder Kris Dumon. “Because branding is important. It’s the face of the brand

and it’s where you can differentiate your-self from others. Without it, in denim, everything would look the same.”

Dumon noted how the concept has lost its original meaning. “The first branded item in the history of denim was the rivet. Levi’s had created jeans but they were falling apart at the seams, so they took a patent on rivets. But the rivets damaged chairs and saddles, so they had to be hid-den on the inside. To let consumers know that the new product was still as good as the old one, Levi’s invented the first pocket flashers. Branding actually made sense back then. Today, it’s no longer about the product, it’s pure marketing.

For its first edition, Why hosted about a dozen leather, metal and paper brand-ing experts, keen to offer added value, such as “the smart label” developed by Dienpi. The label contains a chip, which — when flashed by a smartphone — can provide information about the product, play an ad, show off more looks from the collection or certify the authenticity of the garment.

THE MARKETS

Kingpins Showcases Denim Innovations

Denim makers were upbeat at Kingpins.

Invista’s infrared technology.

Natural indigo dyed denim at Cone.

27 APRIL 2016 11

Hailee Steinfeld celebrated her debut as cover girl and guest editor for the sixth edition of harper by Harp-er’s Bazaar Friday at the aptly named Sunset Tower Hotel. With the pink-and-purple-streaked sky on the terrace providing the perfect backdrop, Steinfeld caught up with girlfriends Bailee Madison, Joey King and Ki-ernan Shipka and posed for photos with Bazaar’s Laura Brown. In between the flurry of activity, the 19-year-old singer and actress chatted with WWD about her new music, her respect for fash-ion designers and being in Taylor Swift’s girl squad.

WWD: What was the most memorable moment of the shoot for you?

Hailee Steinfeld: I got to bring my dream team for hair and makeup, Bobby Eliot and Stephen Sollitto. They have been with me for so long. Every time I’m with them, I’m reminded how lucky I am to get to do what I do.

WWD: You’ve just released your first EP, “Haiz.” What’s your reac-tion to the response it’s received?

H.S.: It’s been very overwhelming how positive everything has been. My fans have been so genuinely supportive having been with me since my movies and crossing over with me to mu-

sic. Music has always been a passion and it’s always been a part of the plan to record it and put it out into the world, but I never could have planned the way it’s gone. It’s been so seamless and surreal.

WWD: We’re digging the second single “Rock Bottom” featuring DNCE. Where did the inspiration come from?

H.S.: The song was written by Julia Michaels and Justin Tranter. “Rock Bottom” is not a love song, it’s not a breakup song; it’s that perfect in-between of that type of relationship I feel everyone’s been in, where

you love a person so much, but they drive you absolutely insane and you let them because you love them. And that’s what keeps you coming back for more.

WWD: Do you find it difficult to balance your acting and music career?

H.S.: It’s not easy. It can be frustrating when it comes to picking one, but it’s been done, so I will continue to do both and do whatever I can to make it work. Right now, music is my main focus and it’s where every part of me is at. So I’m working on my album, I’ll be going on tour this summer with Meghan Trainor, and we’ll see what

happens.WWD: Has your pal

Taylor Swift given you any advice on singing?

H.S.: Watching her, I’ve learned so much and that is where the best advice comes from. Not necessarily her telling me or giving me advice.

WWD: What’s it like to be a part of her girl squad?

H.S.: It’s funny because I think people have a pre-con-ceived notion as to how they think that is. I wish I could see her a lot more than I actually do. But it’s really great know-ing people who know your lifestyle and go through the same things as you because

not everyone understands it. I mean, I’m still learning it and I don’t understand it half the time. So it’s nice to have a solid group of people who do get it.

WWD: Have you started researching the direction of your tour wardrobe?

H.S.: Being on stage, there’s so much you can play around with that you can’t necessarily get away with on a red carpet. But I’m really going to try to go comfort-able because at the end of the day that’s what really matters, and I tend to forget that when I’m wearing really high, high heels.

WWD: You’ve been embraced by the fashion world for quite a while; how does that feel?

H.S.: When I was 14 years old I was asked to do the Miu Miu campaign; it all started when I was invited to their fashion show in Paris. I remember my apprecia-tion for fashion, designers, models and everyone behind a brand, became so much higher knowing how much work goes into a show that lasts for less than five minutes. I really feel like the whole Prada and Miu Miu team is family. They introduced me to the real world of fashion, and I’m so appreciative of that. — ERICKA FRANKLIN

Five Minutes With Hailee SteinfeldThe 19-year-old actress and singer dishes on music, Miu Miu and what she’s learned from Taylor Swift.

Last night, Net-a-por-ter cohosted a dinner and awards ceremony during the San Fran-cisco International Film Festival at Fort Mason. This was the second year in a row that the high-end e-tailer has sponsored the event, and it was a key chance to get in front of the lucrative, yet tricky, Bay Area mar-ket. The evening was one of the last events at the Herbst Pavil-ion, a former military warehouse along the waterfront, before it becomes a center for the San Francisco Art Institute.

Among the honor-ees and guests were film industry nota-bles Ellen Burstyn, Mira Nair, Jordana Brewster, Marcia Gay Harden and up-and-comer Olivia Culpo. Attendees included those from the local culture and style set,

including Vanessa Getty, Katie Traina and Todd Traina, who is on the board of the San Francisco Film Society.

Burstyn received the Peter J. Owens Award, given to an actor whose work exemplifies brilliance, independence and integrity. While walk-ing the red carpet, Burstyn said that integrity had always been an important part of her career — “the backbone of your character” — she said, and she’d always been independent. As for the brilliance, she couldn’t comment on that. Harden, whom she choose to present the award, did that for her, calling her a “goddess.”

“She would,” said Burstyn with a laugh, saying that after meeting on the set of “Spitfire Grill,” the two had become very

close.Harden called

her a “remarkably intelligent, giving, kind woman” who had been there for many important stages in her life. “San Francisco,” although it was cosmopolitan, Harden said, “was completely upstaged by her.”

Brewster, who attended with close friend and film society board member Max Boyer Glenn, said she jumps at any oppor-tunity to come to San Francisco from Los Angeles. Newcomer Olivia Culpo, who was excited about signing her second film — an indie romance — was happy to come as a guest of Net-a-porter, which she praised for “empowering females as a company.”

And that was just it, said Net-a-porter’s Lydia Williams. San Francisco, she said, was a hugely important market for the tech company and retailer, as it was an ideal blend of philanthropy, tech and the arts. Certainly a number of high-powered local executives, and festival supporters, would concur that the feeling is mutual. — MAGHAN MCDOWELL

Net-a-porter HostsBay Area Film PatronsThe San Francisco International Film Festival gala hosted Ellen Burstyn, Mira Nair, Jordana Brewster, Marcia Gay Harden and Olivia Culpo.

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Here and right: Hailee Steinfeld in Blumarine.

Jordana Brewster in Halston Heritage.

Mira Nair

Ellen BurstynMarcia Gay Harden

FOR MORE INFORMATION, PLEASE CONTACT PAMELA FIRESTONE, ASSOCIATE PUBLISHER AT 212 256 8103 OR PFIRESTONE@WWD.COM

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O F S U C C E S S

C E L E B R A T I N G

AN ADVERTISING OPPORTUNITY: Issue: June 8 / Ad Close: May 25 / Materials: May 30

The 2016 Fragrance Foundation Awards

27 APRIL 2016 13

Ranch DressingConsider it a warm-up for the Cannes Film Festival. Léa Seydoux plays a “dar-ing, confident heroine who is constantly on the move” in her first campaign for Louis Vuitton.

Slated to break in Vanity Fair U.K. on Friday and then roll out in other June and July magazines worldwide, the ads picture the “Spectre” actress at the colorful, modernist ranch Cuadra San Cristóbal by celebrated Mexican architect Luis Barragán.

Considered one of Vuitton’s “travel” campaigns, the ad shows Seydoux with

windblown hair cradling Capucines and City Steamer handbags. Occasionally, a horse peers out behind her from one of the compound’s vivid pink stucco walls.

The actress wears clothes from the pre-fall collection in ads styled by Marie-Amélie Sauvé and photographed by Patrick Demarchelier. Paul Hanlon styled hair while Hannah Murray did the makeup.

Paris-born Seydoux recently joined Alicia Vikander, Michelle Williams, Jennifer Connelly and Doona Bae as an ambassador for Vuitton and made

her first appearance for the brand last January at the UNICEF Ball in Los Angeles.

Seydoux scooped up a Palme d’Or at the Cannes Film Festival in 2013 for her role in “Blue is the Warmest Color” and has appeared in such diverse films as “Inglourious Basterds,” “Midnight in Paris,” “The Grand Budapest Hotel” and “Mission: Impossible — Ghost Protocol.”

At Cannes next month, Seydoux is to appear in Xavier Dolan’s “It’s Only the End of the World,” one of 21 films in competition. The cast also includes Marion Cotillard, Nathalie Baye, Vincent

Cassel and Gaspard Ulliel. — MILES SOCHA

Family MattersAfter 12 years as New York Media’s chief executive officer, Anup Bagaria will be heading for the door and will be succeeded by Pamela Wasserstein as of May 2. For the past 18 months, Wasserstein has had a day-to-day role as cochair and head of strategy for the company, which publishes New York Magazine and the digital properties nymag.com, Vulture, the Cut, Daily Intelligencer, Grub Street and Science of Us. Perhaps her former role at Tribeca Enterprises as vice president of corporate development spearhead-ing new business initiatives, including the Tribeca Shortlist subscription video-on-demand film service, speaks to the increasingly digital-minded path that New York Media is after — along with many of its competitors.

In tandem with editor in chief Adam Moss and publisher Larry Burstein, Wasserstein will be ramping up such initiatives as a new branded content studio and video team, and reinvention of the live events strategy, building on the Vulture Festival and others. Next up is Wednesday’s launch of Select All, a new vertical exploring technology that aims to examine tech in the way others look at entertainment, approaching it as an obsessive fan might.

A graduate of Harvard and Har-vard Law School, Wasserstein is the daughter of the late Bruce Wasser-stein, whose family entity acquired New York in 2004. He died in 2009. Pamela Wasserstein’s experience also includes stints at Apollo Global Management and as a corporate lawyer at Wachtell, Lipton, Rosen & Katz LLP. — ROSEMARY FEITELBERG

Price’s New GigCandy Pratts Price has been named a contributing editor at Departures mag-azine. Her first piece, which appears in

the May/June issue, takes a look back at the late fashion illustrator Antonio Lopez, who’s the subject of a retrospec-tive called “Antonio Lopez: Future Funk Fashion” at the Museo del Barrio in Manhattan, opening June 14.

To celebrate her appointment, Rich-ard David Story, editor in chief of De-partures, will host an event at the Core Club in New York on Thursday night, where they’ll discuss Lopez, what’s happening in the fashion business and Price’s likes and dislikes.

“I’ve known Candy ever since I worked at Vogue magazine,” said Story, who left Vogue in 2000 to join Depar-tures. “Price was outrageous, wonder-fully eccentric and keenly intelligent. Luckily for all of us, she still is.”

Price was previously creative direc-tor of Vogue.com; executive fashion director at Style.com; creative director at Ralph Lauren; accessories director for Vogue, and fashion director for Harper’s Bazaar. She edited “American Fashion Accessories” and conceived and directed the fashion content for the 1999 VH1/Vogue Fashion Awards. She began her career designing store windows and displays for Blooming-dale’s. She also curated the exhibition “Manolo Blahnik…The Shoe: A Celebra-tion of Design.” — LISA LOCKWOODMemo Pad

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Visual CultureSotheby’s in London will hold a sale of a selection of sought-after fashion photographs from the 20th century to the present day.

The sale, which will take place May 19, will coincide with the second edition of Photo London, a photography fair that brings together the British capital’s major museums, galleries and auction houses to celebrate photography.

Rare photographs from the likes of Richard Avedon, Helmut Newton, Irving Penn and Peter Lindbergh will be sold alongside works of modern-day pho-tographers including Miles Aldridge and David LaChapelle.

Penn’s striking “Mouth” photograph taken for L’Oréal in 1986 portraying female lips smeared with numerous shades of lipstick will be included in the sale. This is only the third time the image has gone to auction and it is estimated to sell for up to 230,000 pounds, or $331,000 at current exchange.

Also among the highlights is “Models,” another Lindbergh photograph featuring supermodels of the Nineties, including Linda Evangelista and Christy Turlington, wearing men’s shirts and little makeup. It was a reaction to fashion photography’s fascination at the time with retouching.

The photograph, which was con-sidered too avant-garde to be used by Vogue U.S. at the time, is estimated to sell between 60,000 to 80,000 pounds, or $86,000 to $115,000.

A nude black-and-white shot of a young Kate Moss taken by Albert Watson in 1993; Guy Bourdin’s daring

photographs taken for French Vogue in the Eighties, and Newton’s classic black-and-white “Woman Into Man, Paris” photograph will also be going under the hammer. Among the other photographs in the sale are the “Money Shot” by David La Chapelle and Miles Aldridge’s “The Rooms No. 2,” which was initially show-cased as part of “I Only Want You to Love Me,” a solo exhibit of his work held at Somerset House in 2013.

“These works were carefully chosen for this auction and reflect the continued interest and collectability of fashion pho-tography, an area in the market that has grown from strength to strength,” said Brandei Estes, Sotheby’s photographs specialist. “We expect these works will do extremely well and are delighted to have such a broad estimate range.” — NATALIE THEODOSI

Savvy Start-upsTopshop has teamed with the tech investment firm L Marks on an innovation program for emerging tech companies. The program, called Top Pitch, is focused on sourcing fashion-forward functional products and prototypes, including wear-able technology and smart accessories, WWD has learned.

Start-ups can apply on toppitch.co until May 22. The selected companies will take part in a four-week digital scheme that offers mentorship, guidance and advice from industry names such as Rachel Arthur, founder of Fashion & Mash; Maddy Evans, fashion director of Topshop, and Bethany Koby, cofounder and chief executive officer of Technology Will Save Us.

The start-ups will present their product to Topshop owner Sir Philip Green and the winning company will win a chance to see their creation produced for Topshop.

“Topshop has long supported emerg-ing talent in creative industries and this project serves to further this aim,” said Sheena Sauvaire, the retailer’s global marketing and communications director. “As a brand we champion new platforms of innovation and we see wearable technology as an exciting area of further exploration. The merge of style and func-tion has yet to have been seen in a true consumer-ready sense and our aim is to discover new-to-market, highly desirable product at accessible prices for our fash-ion-savvy customer.” — LORELEI MARFIL

Fashion Scoops

Candy Pratts Price

Louis Vuitton’s first campaign with Léa Seydoux.

A visual for Top Pitch.

“Christy Turlington” New

York’, 1990 by Albert Watson

“Woman into Man, Paris”, 1979

by Helmut Newton

‘Linda Evangelista, Tatjana Patitz, Christy Turlington, Estelle Lefébure, Karen Alexander,

Rachel Williams’photographed by Peter Lindbergh for Vogue in Los Angeles, 1990.

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