GO WITH THE FLOW

Cash-Rich Retailers Spending Their HoardsWWD

Shorts Circuit

GIANFRANCO FERRÉ, ROBERTO CAVALLI, AQUILANO.

RIMONDI AND UMA WANG CLOSED OUT THE MILAN SHOWS. PAGES 4 TO 6

THE COLLECTIONS

ROLL ON

The Sander Saga

SEE PAGE 3

RAF IS OUT, JIL IS IN. Today is Jil Sander’s first of-

ficial day back at the house that bears her name. Let’s hope her third tenure there is handled more gracefully than the debacle of the past few days, when news of the shake-up erupted just in ad-vance of Raf Simons’ last show.

Simons leaves — more cor-rectly, he was unceremoniously dumped — at the top of his game. A designer of women’s wear nei-

ther by education (he studied furniture design) nor first sartorial vocation (he started in men’s), in 2005 he took over a house in distress after some bad de-cisions — including the one by its founder to sell into a situation, which, in retrospect, would almost surely lead to a clash of personalities — and turned it around, at least creatively. He made it not only rel-evant again but essential.

Under Simons, Jil Sander became one of a handful of fashion’s must-sees. His clothes have been consis-tently provocative, vibrant, thoughtful. And gorgeous. His past four collections — culminating with his breathtaking tour de force on Saturday — have been some of the most exciting and important by anyone in recent memory.

This dismissal is inexplicable to me. A matter of commercial viability? If these clothes aren’t salable, I’m sad for fashion. In her comments to WWD on Monday, Sander invoked the need “to break rules, if there is a good reason. Now is the time to be daring,

TUESDAY, FEBRUARY 28, 2012 WOMEN’S WEAR DAILY $3.00

WEE HOURS

THE STARS PARTIED LATE INTO THE NIGHT AT THE POST-OSCARS

BASHES. PAGE 9

PHOTO BY DAVIDE MAESTRI

Trim walking shorts. They were Giorgio Armani’s leitmotif for fall, paired with nearly every one of his looks — from jackets and furs to skirts and even eveningwear. The sporty flair annunciated his “Easy Chic” vibe for the collection, as did the flat shoes he also showed throughout. For more from Milan, see pages 4 to 6.

Bridget Foley’s Diary

By EVAN CLARK

CASH MIGHT NOT BE AS COOL AS IT USED TO BE.After building huge cash hoards following the 2008

financial crisis, retailers drew down their rainy day funds last year and are keeping less on hand.

Many chains used their excess cash to goose earn-ings per share through stock buybacks and to pay divi-dends, while also spending on e-commerce initiatives, opening specialized distribution centers and working to become more holistic, “omni-channel” players.

Of the companies weighing in with year-end finan-cial results so far, a group of eight of the most-aggres-sive cutters — including Target Corp., Kohl’s Corp. and J.C. Penney Co. Inc. — slashed their cash, cash equiva-lents, marketable securities and short-term invest-ments by a total of 41.5 percent over a year earlier. (For a closer look at who’s cutting their cash and who’s still feeding their piggybanks, see chart on page 12.)

The spending of cash reserves might be the most important overlooked story of the fourth-quarter re-tail earnings season, which kicked off last week.

Retailers are trying to find the right balance. If they don’t buy back shares or pay dividends, they risk losing the interest of Wall Street. If they don’t spend enough on their own businesses, they risk stagnation and poor performance.

Critics of Sears Holdings Corp. have accused the company of not spending enough on its stores, while continuing to buy back stock. The retailer, which had a $3.14 billion loss last year, also bought back $183 million of its own stock. Its cash balance fell 45 per-cent to $747 million.

“You’re talking about a mature industry, you’re also talking about a mature clientele,” said Paul Nolte, man-aging director with investment firm Dearborn Partners in Chicago. The 77-million strong Baby Boomer gen-eration has moved beyond what he described was the “sweet spot” for retail, the 25- to 48-year-old age group.

“You don’t have as much of a growth industry SEE PAGE 12

WWD.COM2 WWD TUESDAY, FEBRUARY 28, 2012

KarmaLoop Inks Distribution Deal With Xiu.com

Dow Continues to Flutter Around 13,000 Level

To e-mail reporTers and ediTors aT WWd, The address is firsTname_lasTname@fairchildfashion.com, using The individual’s name. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.VOLUME 203, NO. 41. TUESDAY, FEBRUARY 28, 2012. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, October and December, and two additional issues in February, March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For all request for reprints of articles please contact The YGS Group at condenast@theygsgroup.com, or call 800-501-9571. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

on WWD.CoM

the Briefing Boxin Today’s WWd

With little growth on the horizon, retailers have to decide how they want to use the cash they make. PAGE 1 Today is Jil Sander’s first official day back at the house that bears her name. PAGE 1 Streetwear e-commerce site KarmaLoop.com has inked a distribution deal with Xiu.com, the leading online luxury e-tailer in China. PAGE 2 Despite surpassing 13,000 for the sixth consecutive trading day, the Dow Jones Industrial Average still wasn’t able to close above the mark. PAGE 2 Chunky knits, cashmeres, color-blocked sweaters, printed tops and dresses and coated and colored denim were some of the key trends at Fashion Coterie last week. PAGE 7 Manufacturers that proved they could produce trendy fashion at a reasonable price held a distinct advantage at Sourcing at MAGIC’s most recent edition. PAGE 8 Graydon Carter played host to a plethora of A-list stars, models, athletes, socials and even some royalty at Vanity Fair’s annual post-Oscar bash on Sunday. PAGE 9 If you follow Jason Binn on Twitter, you know that he’s always working on something. His latest news: the launch of Du Jour. PAGE 9 Domenico Dolce and Stefano Gabbana injected a shot of glamour at a party at their Gold restaurant to fete the brand’s spring ad campaign “La Bella Estate.” PAGE 11 More than one-third of mobile product owners are using their devices for mobile commerce, according to a study from the Consumer Electronics Association. PAGE 12

Backstage at the Dsquared show.

PARIS FASHION WEEK: Fashion week makes its way to Paris. For the latest collections, backstage and front-row images, see WWD.com/runway.

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By Vicki M. Young

Streetwear e-coMMerce Site karmaLoop.com has inked a distribution deal with Xiu.com, the leading online luxury e-tailer in china.

the deal is believed to double karmaLoop’s dis-tribution, once the products from karmaLoop.com reach the Xiu.com web site in about two months.

richard kestenbaum of triangle capital, karmaLoop’s financial adviser, said, “this transaction is the first of its kind and karmaLoop is very well suit-ed to doing new and innovative things. the relation-ship with Xiu.com will open up china to virtually the entire range of products being offered by karmaLoop and allows karmaLoop and Xiu to have enormous and continued growth.”

other financial contacts said they believe the deal be-tween karmaLoop and Xiu could be the first of its kind.

Xiu, which counts venture capital firm kleiner Perkins caufield & Byers and pri-vate equity company warburg Pincus — the two firms have invested a total of $120 mil-lion — among its investors, has ramped up significantly in the past year. while it sells many local chinese brands on its site, the most popular are the western brands through direct arrangements with the companies themselves, according to Maureen Mou, senior vice president of global sourcing.

among the luxury and fashion brands sold on Xiu.com are abercrombie & Fitch, andrew Marc, Balenciaga, Bally, BcBg, Betsey Johnson, calvin klein, chloé, Diesel, Dolce & gabbana, ermenegildo Zegna, givenchy, guess, Jessica Simpson, kipling, Longchamp, Marc Jacobs, Michael kors, Miu Miu, Polo ralph Lauren, tommy Hilfiger and tory Burch. Sixty percent of the merchandise is in-season and the balance is considered “outlet goods.”

Data from Xiu indicate that it has two million regis-tered users. each visit to the site averages six minutes, with 43 seconds spent per page view. there are about four million page views a day. By gender, 45 percent of customers are male and 55 percent are female. the largest customer pool by age are those between 25 and

30 at 36.4 percent. the second largest customer base, at 32 percent, are those between ages 18 and 24. those ages 36 to 40 comprise 14.7 percent of Xiu’s customers.

according to Mou, the average total per shopping cart visit is $100. among the apparel brands, mer-chandise priced between $100 and $500 is the most popular. in accessories, the price points skew higher, with $150 to $1,500 the hot price range.

“women do more of the shopping on our site, buy-ing apparel, shoes and cosmetics. the men spend more due to gift giving. For themselves, they buy belts, shoes and watches,” Mou said.

Xiu.com posted $23.8 million in volume in 2011. Xiu is targeting a volume range of $500 million for 2012.

according to Mou, the jump from $23.8 million last year to a $500 million projected range this year is due

to the firm’s expansion into 10 product categories and its hosting of more than 2,000 brands, of which more than 300 are western brands.

“we are looking to add more individual western brands or brand aggregator sites,” Mou said of Xiu’s ex-pansion plans.

Payment on the site is via online banking through chinese bank-issued credit or debit cards; alipay, which is similar to eBay’s PayPal, and offline money transfer options such as money orders.

karmaLoop has also been busy eyeing expansion opportunities.

greg Selkoe, founder and chief executive officer, described the chinese market as a “great leap for us.” He said he will use the learnings from Xiu to eye expansion possibilities for karmaLoop in korea. the firm in December purchased european web site Streetammo, which will serve as karmaLoop’s growth platform in europe.

For now, Selkoe’s busy working on ramping up for the launch on Xiu. “the price points are slightly higher in china, because the [western] goods are harder to get there and consumers are willing to pay a premium to get american clothing,” Selkoe said.

the photos will be taken from karmaLoop’s web site, with Xiu adding chinese characters for the translation. as for distribution, Selkoe is planning on shipping in bulk from the u.S. initially, with a dis-tribution center eventually set up in china, possibly within a year.

inVeStorS are Looking for a reason to believe the best days are still ahead, but retail might be ready for a breather.

wall Street’s recovered from the flare-up of europe’s debt crisis last year and is now flirting with levels not seen since mid-2008. the Dow Jones industrial average topped 13,000 for the sixth-con-secutive trading day Monday, but still wasn’t able to close above the mark.

andrew Fitzpatrick, director of investments at Hinsdale associates, said shareholders are trying to get comfortable with the new level and that there was room for stocks to move higher still as investors pour more money into stocks that pay dividends and interest rates remain low.

“it’s a psychological level more than anything,” said Fitzpatrick of the Dow’s 13,000 mark. “Markets do tend to straddle the line of significant numbers, it’s not that unusual to see it bounce back and forth. even though it’s hard to predict, there is a certain element of that milestone creating more of a pause than anything, and eventually we’ll see the market digest and move forward.”

that might be starting. the broader S&P 500 closed at a high not seen since before Lehman Bros. went bankrupt in 2008. and the S&P retail index has repeatedly set all-time highs this year.

“there is a sense that the economy is on a little firmer ground, and the europe situation, there’s re-ally nothing new there, so markets have sort of di-gested that,” Fitzpatrick said. “Yes, there’s a lot of debt and a lot of issues, but maybe they’re ok for right now. the sentiment is improving, and this is giving investors confidence.”

retailers, which historically have led the market, have been on a roll lately, and Fitzpatrick warned the sector could be due for a bit of a pullback.

the S&P retail index inched up 0.3 percent, or 1.67 points, to 574.22. the measure of retail stocks is near its high of 577.58 and ahead 9.8 percent so far this year. the Dow ended the day down 1.44 points at 12,981.51 and traded as high as 13,027.37 as the S&P 500 rose 1.85 points to 1,367.59 — a level not seen since June 2008.

among the retailers perking up were Hot topic inc., up 7.7 percent to $9.05; Michael kors Holdings Ltd., 5.2 percent to $43.66; Joe’s Jeans inc., 4.7 per-cent to 67 cents; the Jones group inc., 3.2 percent to $9.88, and gap inc. 2.2 percent to $23.07.

in europe, markets closed with a thud. Milan’s FtSe MiB fell 1.1 percent to 16,308.60 as Paris’ cac 40 sank 0.7 percent to 3,441.45, London’s FtSe 100 dropped 0.3 percent to 5,915.55 and Frankfurt’s DaX dipped 0.2 percent to 6,849.60. — EVAN CLARK

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there are few new ideas.” A good number of fashion’s recent good ideas emerged on Simons’ runway, notably the modernization of classic couture elements and their infusion with a sporty attitude.

Sander also said, “I feel that the spirit and enlightened development of basics has a lot to do with the future of fashion.” Agreed. Up and down

the food chain, basics will always form the core of most people’s wardrobes. But at the luxury level at least, such basics should provide background for greater fashion. If the passion, thirst and — bottom line — market for such fashion no longer exists or is endangered, then why do we all sit on our fannies at these shows for four weeks straight, spending lots of corporate money along the way? So brands can build their fragrance businesses? Basics, even the toniest ones, can now be seen to fine advantage on Ed Filipowski’s Digitalfashionshows.com. If fashion’s future lies primarily in basics, is the advanced designer species robbed of its raison d’être? Should the sensible, savvy creative director move in and take over?

But I digress. That’s a different, if related, topic for a different day. My point here is twofold: First, I just don’t get this change. Second, it was handled badly. On point one, how many shows are genuinely memorable by season’s end, let alone into the future? Oh so few, and Simons’ percentage over the past few years is sky-high. Yet of the industry comments I read in WWD Monday, most (except for those of Anna Wintour, Ken Downing and Linda Fargo) veered highly political, toward “The King is dead! Long live the Queen!” making me think I’m in a minority. Why? Weren’t some of the respondents among those who left Simons’ shows gushing?

Back to the commerciality issue: Was a proper infrastructure ever installed at Jil Sander? I don’t know. There have been mentions of the company’s inability to build an accessories business. Was that essential support in place? Though one bum handbag does not a production crisis make, I wonder. At Christmas, I bought a glorious Sander runway bag, only to discover that day that the handle leather had split. A production issue; not a design issue.

On point two, let’s assume that for whatever reason, Onward Holdings Co. Ltd. and Gibò Co. SpA decided it was time for a change. It’s their right. No matter how talented, respected or productive one has been within the workplace, as well-employed people from Tom Ford to Peyton Manning know, we all serve at the discretion of management. Perhaps, despite her prolonged absence from the workaday realities of luxury fashion, Sander’s abrupt availability after her split with Uniqlo was too enticing to resist.

That doesn’t excuse the clumsy handling of the change — even given that the press, primarily my dogged colleague Miles Socha — was all over rumors that started percolating weeks ago. Where did they come from? I have no idea, but their escalation just might have had something to do with Sander strolling openly around Première Vision, and, when asked why by WWD Japan, responding that the announcement of her next project would come during the Milan collections.

It’s hard to believe that this longtime master of the Garbo technique didn’t consider that silence (or just not being there in the first place) might be golden. Surprising conduct from Sander, who loves to project elegance of behavior. (Nor is it her first suspension of such; when retailer Janet Brown, who

was among Sander’s first and most impassioned U.S. champions, died, Sander refused to contribute to Brown’s obit with more than a one-line comment.) Knowing well in advance that fall 2000 would likely be her (first) last show at the then Prada-owned company, Sander orchestrated it to the nines, the presentation calm, the audience “intimate” and her show notes offering words of fortitude. She’d been able to write her own exit scene; she wasn’t blindsided. As it turns out, with far less time for psychological preparation, Simons’ show, and the spontaneous audience outpouring, felt genuine and moving. No matter. It’s surprising that Sander would act with such apparent disregard for another designer.

The chapter may be written, but not the book — or books. Sander may have a lot of fabulous fashion left in her. We know Simons does. Here’s wishing them both all the best.

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Bridget Foley’s Diary

Raf Simons on Saturday, after his final Jil Sander show.

Looks from Raf Simons’ past four Jil Sander collections. Here, spring 2011.

Spring 2012

Fall 2011

Fall 2012

Jil Sander: The Trials of Succession {Continued from page one}

4 WWD TUESDAY, FEBRUARY 28, 2012

Giorgio Armani: On Monday, Giorgio Armani showed a strong collection to close a strong Milan season. (Which is not to say it couldn’t and shouldn’t be at least a day shorter. New York is too long due to too many shows of too little importance. Here, the first and last days had very little going on.)

There was plenty to see at Armani, which the designer dubbed “Easy Chic.” The refined tailoring provided the chic, he said before the show, with a flats-only approach for shoes delivering the ease. The clothes featured a strong men’s wear current, but rendered with a light hand; every ensemble was topped off by an audacious fedora, and vibrant orange and fuchsia ran throughout. He opened with sleek gray pants looks — as suits and in combination with tops in vibrant solids or graphic prints. He then moved on to his primary motif: light, even festive pieces over snappy man-tailored walking shorts. These proved the anchor for Armani’s diversified offerings, from ladylike jackets to fit-and-flare coats to a number of Bohemian furs — shearling, rabbit and faux. Skirts were cut for ease of movement, and to allow for sightings of the shorts worn beneath. The integration of numerous textures and weights kept everything interesting.

Evening swung sportif, as it all featured the shorts — Armani found a wavelength and stuck with it — whether with jackets or under dresses. Either way, the upper pieces were crystal-embroidered for a feeling both lavish and young. Except for the last look, a black, extravagantly beaded jumpsuit with a silver-embroidered zipper down the front. Only divas need apply.

Roberto Cavalli: From the bubble gum opening to the finale that fizzled — Naomi Campbell, the caboose on a train with no steam — Roberto Cavalli’s fall collection had the mystifying feeling of a REM-cycle dream. Don’t pinch yourself — it was real.

A degree of youth and able-bodied maintenance has always been implicit in Cavalli’s animal-printed va-va-voom. Usually it’s executed with a significant level of designer sophistication that indicates the clothes are in fact for grown-ups, who will need a sense of humor to appreciate the score of short, baby-doll bubble dresses, done in bright pink and green sequins with harness backs that opened the show. From there, the animalia — prints, furs and exotic skins — and sparkle stayed, while hemlines fell and proportions ballooned into boxy tops, long ball skirts and drop-waist tunics worn over flared pants. Perhaps an exotic riff on grungy glamour was intended in the sequined T-shirt paired with an awkward full-length fur skirt? Hard to tell.

Gianfranco Ferré: Designers Frederico Piaggi and Stefano Citron face a challenging task at Gianfranco Ferré. The design duo is expected to move the brand forward and update the late founder’s DNA when it’s still unclear how new owner Paris Group plans to develop

the beleaguered business. Amid this sense of uncertainty, they put together a collection of architectural, often asymmetric looks, which had some appeal in the way they were executed with a modernist hand.

According to the show notes, Piaggi and Citron looked to Helmut Newton’s iconic photography to inspire clothes that “depict a femininity of

graphic vigor” — a notion that became clear with the first few looks, including a black jumpsuit with leather inserts at the elbows, and a black leather dress with a liquidlike feel. Picking up on this season’s Milan trend, they also mixed textures, shown, for instance, on a lavender coat with fur sleeves. At times, the silhouettes felt strict and

severe, but the duo lightened the mood by combining more graphic silhouettes with soft details like flowing pleated georgette details that peeked out from underneath constructed dresses.

Aquilano.Rimondi: The Aquilano.Rimondi show confirmed Italian fashion’s current obsession with royalty.

Tommaso Aquilano and Roberto Rimondi’s inspiration was a cross between Marie Antoinette and the holy women depicted in Italian Baroque paintings. That made for an interesting tension, with dresses buttoned up to the chin — in the form of raised velvet collars — revealing a saucier back view. A blue silk dress with a Maltese cross

Giorgio Armani Roberto Cavalli

MILAN — THE FINALE

The shows closed with an emphasis on one of the biggest trends of the season: a mix of textures including furs, leathers, tweeds and lots of sparkle.

WWD.COM5WWD TUESDAY, FEBRUARY 28, 2012

pattern, a recurring theme in the collection, revealed a curvy black leather panel in the back with eyelets running diagonally on either side of a zipper. The designers were at their most convincing when they gave that Gothic vein free rein, which they did in a sequence of black dresses that glistened with sequined and jet-bead embroideries.

Uma Wang: Despite the quickly evolving mutual fascination between China and the West at the luxury fashion level, the relationship remains incredibly one-sided in one respect: A major, or even minor, Chinese designer has yet to emerge out of the motherland. But the name circulating as a breakthrough contender is Uma Wang, who studied at China

Textile University and Central Saint Martins before launching her label in 2005.

The collection Wang showed Sunday in Milan (she’s shown previously in Paris) backed up the buzz. The clothes were beautifully crafted in a combination of avant-garde Gothic and Western grunge. The palette was dark and murky, and many of the dresses were

done in amorphous silhouettes shaped by asymmetric cuts. Some of the best looks were long tailored coats, including a nubby herringbone, a black-and-green polkadot trench, and a pintucked, floor-length duster done in what looked like a splatter-paint python motif. The influence of Yohji Yamamoto could be seen in the clothes’ brooding elegance.

THE GIORGIO ARMANI and Emporio Armani accessories lines were showcased for the first time at Milan Fashion Week.

A sharp men’s inspiration ran through the Armani collection, which was displayed in a suite at the designer’s new Armani hotel. The focus was on flat shoes, such as an elongated and narrow brushed calfskin lace-up, with ponyskin or

crystal-encrusted vamps in bold tones of orange and fuchsia, and gold details on the toes. Geometric shapes and audacious combinations of materials dominated the bag collection. Case in point: a zebra-print ponyskin clutch with neon pink and gold patent leather inserts. There was also a big focus on exotic skins, including a structured shoulder bag in black python splashed with a zigzag pattern in neon pink and purple.

The Emporio Armani lineup, shown in the brand’s flagship, centered on a velvet floral pattern in cool tones of blues and greens for loafers, booties and handbags, such as a zipped, rounded clutch. Velvet was paired with fishnet on a black bowling bag with gold metallic details and on a pump with a high instep. Pleated leather was also used for a range of bags, including a black square-shaped style with a detachable shoulder strap.

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FALL 2012

MILANCOLLECTIONS

FOR MORE PHOTOS AND REVIEWS, SEE

WWD.com/runway.

6 WWD TUESDAY, FEBRUARY 28, 2012

DSquared: Senior year in high school was Dean and Dan Caten’s idea for the clothes at DSquared this season. With the duo’s usual styling antics, this could have gone a variety of ways — homecoming queen, mean girl, prepster, nerd, slacker, to name a few — but in a positive, and surprising, move, the designers took on the theme with a more subtle, sophisticated hand, at least by their standards. The lineup had plenty of wearable looks, like a chic toggle coat with a leopard print collar shown with a checked shirt, a shrunken cardigan and low-slung tight jeans rolled up just below the calf. A formfitting blue dress with matching jacket featuring brooch-like buttons and a white drawstring dress with a stand-up collar were quite elegant.

The Catens added a few alluring evening pieces that were less prom and more red carpet, including a black hourglass dress with a structured bodice and bow detail. The overall effect had a demure sex appeal that was more “Grease” than “90210,” though there were still touches of whimsy, the most evident coming via a poodle motif on a sweater that was teamed with a gold brocade pencil skirt.

Versus: Donatella Versace and Christopher Kane’s Versus was, as Kane put it postshow, “young, cool, underground, ghetto, rebellious teenager, angry, tie-dye, acid fabrics, the colors, cocoon shapes, sweetheart, it’s quite trippy.” That’s a lot to take in, but Versace and her collaborator for the secondary line were able to pull it together effectively with a sense of grittiness and a youthful spirit, just like London’s Camden neighborhood which informed the lineup.

The show kicked off with a few looks that mixed fabrics with leather (a Milan trend of the season), including a plum coat with leather sleeves and circular pockets. The designers then moved into edgier territory with a short dress with a laced bodice and a pleated skirt, or a laced jacket and leather pants. These pieces brought the right touch of punk to the

clothes, without ever losing the collection’s girly sensibility. Along the way, Kane was respectful of Versus’ origins in the color scheme of purples and blues, and prints — including an ornamental pattern for a top with a pleated skirt — that felt very Versace, but with a more youthful edge, which is just how Versus should be.

Trussardi: For his second women’s collection at Trussardi, Umit Benan Sahin offered functional, utilitarian looks heavy on men’s wear touches — hardly a surprise, considering he is a hot men’s designer in his own right. According to the show notes, these clothes were destined for an “explorer and citizen of the world,” this time placing her at a local bazaar sampling foods from around the globe (thus the market backdrop with boxes of real fruits and vegetables). The concept translated into tailored three-piece suits with two different stripes, a cinched gray blazer with the belt looping through it, which the designer teamed with a casual beige dress, and a green leather shirtlike dress with large pocket details. As for the accessories, there were several oversize backpacks — perhaps most suited to carry all that fresh produce.

Mantù: For the brand’s first presentation during Milan Fashion Week, designer Gigi Vezzola opted for a chic urban mood, taking inspiration from the glamour of New York, the sophisticated atmosphere of London and the exotic modernity of Hong Kong. That worldly combination translated into a wearable lineup that mixed elements of femininity and tailoring. A soft camel wool and angora jacket featuring contrasting black sleeves, for instance, was paired with men’s wear-inspired wide-legged pleated pants, while a patchwork flannel fitted dress was topped with a sporty duffle coat. Vezzola also played with fabric mixes, as in a pretty sleeveless V-neck dress combining geometric-pattern brocade, wool and velvet.

Bally: At Bally, Graeme Fidler and Michael Herz presented a striking collection that combined severe architectural shapes and feminine details. A sensual silk see-through top with leather details inspired by leaves, for example, was paired with a knee-length leather skirt that helped balance the stiffness of a leather biker jacket with a shearling collar. Leather was also teamed with stretch wool on a sophisticated, draped and fitted dress with a napa ruffle at the waist. The mostly sober palette of black, deep blue and slate was given a jolt of bright red on a leather trenchcoat, also with a shearling collar, worn over a matching ladylike cropped jacket and a fitted dress with an asymmetric edge.

For the footwear, the design duo went back to the Swiss company’s archive, reworking styles from 1969. The result was a range of leather lace-up heeled boots, booties and spectator pumps.

Bulgari: Introduced a year ago, Bulgari’s Serpenti collection remains the focal point of the label’s handbag and leather goods for fall. New additions to the line, inspired by the serpent motif Bulgari popularized in the Sixties and Seventies, included streamlined satin clutches with black-and-white metal wrist bracelets, not unlike a handcuff, done to emulate reptilian scales. Metallics were also big in the Serpenti range, as well as other evening pochettes, including a standout from the Monete coin medallion collection in lasered lambskin with a rich antique finish.

In other news, Bulgari added mini versions and shiny alligator styles of its Isabella Rossellini bag.

DSquared Versus Trussardi

Mantù

FALL 2012

MILANCOLLECTIONS

FOR MORE PHOTOS AND REVIEWS, SEE

WWD.com/runway.

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WWD.COM

By Lisa Lockwood

NEw YoRk — chunky knits, cashmeres, color-blocked sweaters, wraps, furs, fur-trimmed outerwear, printed tops and dresses and coated and colored denim were the key trends at Fashion coterie here last week.

Booths such as Minnie Rose, Patterson J. kincaid, Ella Moss, Elizabeth and James, Nally & Millie, shoshanna, iro, Parker, Theory and aG were among those packed with retailers, and vendors report-ed that they were doing a lot of writing.

Lori Goldstein, owner of Great stuff, a five-unit specialty store retailer in the Tristate area, praised the T-shirt line Majestic, particularly its stripes and cashmere and cotton blends. she also liked Bobi for understated T-shirts, Bibelot sweaters and creme Fraiche printed blouses with pockets. she also said she bought avenue Montaigne’s pants as well as James Jeans.

abbey Yates, owner of the Bahama shop in Virginia Beach, Va., said she’s doing well with colored denim for spring, and she’s noticing the colors getting dark-er for fall. she felt the waxed treatments are still important. as for highlights? “Parker looks good, Young, Fabulous and Broke, Ella Moss and splendid are always money in the bank,” said Yates. “This show is the about the strongest show i’ve seen in a long time,” added Yates. “Business is very good. There’s some ex-citement and people are leaving orders.”

sal Margvelashvili, assistant buyer and store manager for Tag denim in Philadelphia, said she was excited by all the jeans she was seeing at coterie. “i’m loving the coated denim for tweens, young adults and moms. They make it very wearable for all body types,” she said, citing david kahn Jeans in particu-lar. at the show, she was seeing “prints, prints and more prints. we’re back to the seventies in shapes and silhouettes.” Tag, which caters to women 20 to 45 years old, is very denim oriented and carries brands such as seven For all Mankind, citizens of Humanity, aG and Paige. Joel dahan, owner of Tag, added, “Basics have plateaued, and hopefully we’re fast forwarding into coated prints and novel-ty. all [the women] have the seven jeans, but with printed and coated, [their style] becomes individual,” he said.

Holly Greene, owner of infinity, which has five stores in the New York area, said she saw a lot of python at the show. “Blank [Jeans] looked good,” she said. she also liked the sweaters at chaser. she noted that wild Fox is a great-selling resource and praised their sweatshirts in vintage varsity material. The “baggy beach jumper”

was the company’s number-one bestseller, added Trevor Larson, director of sales and product development at wild Fox.

Vendors reported that they were hav-ing success at the show.

“we’ve been packed all day long,” said a spokeswoman for Minnie Rose, add-ing they were selling a lot of cashmeres, cottons, Mongolian fur-fake suede cotton motorcycle jackets, cashmere duster and rabbit fur vests, chunky knits and cash-mere color-blocked ruanas.

Paul & Joe sister, a sportswear re-source, was busy writing orders for its coats, knits, printed shirts and sweat-ers featuring cats on them. The com-pany sells such stores as Nordstrom, Neiman Marcus cusp and aritzia. “we opened 10 new accounts on the first day, and we have eight more confirmed ap-pointments,” said Julien Haggiag, vice president of Paul & Joe sister Usa. He was also showing his new division, confidential atelier, which features Monet-inspired printed shorts and pants. That line, which is designed in Paris, is being sold for immediate delivery, whole-saling between $75 and $82.

Julie chaiken, designer and owner of chaiken, said business was brisk at coterie, and she was doing well with the kira pant with leather detailing down the side, wholesaling for $128, and the Joani pant, a midrise twill, for $102. she was also selling plenty of leather T-shirts, in gray and black, for $250. “Every store

gravitated toward them,” she said. avenue Montaigne, known for its

pants, was also having a successful show. “Today was very good,” said Meg Himmelfarb, national sales manager, on opening day. “we were constantly busy with a good flow of business, and saw new customers and repeat customers.” one of the new items on the line, which was a strong seller, was the pleather pant, which is machine washable in pleather and cotton, wholesaling for $120.

Bernard aidan, chief executive officer of catherine Malandrino, which was sold to Elie Tahari and arthur s. Levine last october, said Malandrino hasn’t shown at coterie for a few years, “and it was a good idea to come back here.” aidan said he met with many accounts at the show. in addition to its wholesale busi-ness, Malandrino has seven freestanding stores. He said the business’ next step would be to start licensing products, such as footwear and handbags.

7WWD TUESDAY, FEBRUARY 28, 2012

Coated Jeans, Furs Hot Items at Coterie

David Galan’s accessories.

Catherine Malandrino looks.

Twenty8Twelve London pink dress.

Cornelia Guest at her booth.

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WWD.COM8 WWD tuesday, february 28, 20128

textiles

By Khanh T.L. Tran

LaS VEGaS — Manufacturers that proved they could produce trendy fashion at a rea-sonable price held a distinct advantage at Sourcing at MaGIC’s most recent edition.

as consumers have been demanding trends such as prints, leather and fake fur, designers sought factories that could deliver them at the Sourcing expo held Feb. 12 to 15 at the Las Vegas Convention Center, where more than 800 exhibi-tors from 40-plus countries participated. Underscoring the argument that any little price break helps in a challenging econ-omy, Sourcing highlighted countries such as Colombia, Ethiopia, South Korea, Peru and South africa that would qualify as duty free for U.S.-based importers.

The american market is highly coveted among overseas manufacturers. China’s Texpert holding Industrial Co., a special-ist in men’s wool coats, participated in Sourcing for the first time in a decade, as it aimed to grow its U.S. sales to 50 percent from 20 percent. European-based fashion brands Zara, h&M and Cna rank among its top clients. Prices for its tailored designs, including a black wool, polyester and vis-cose car coat, start at $20 a unit, with a minimum order of 1,000 pieces.

“after price, the customer cares about service and follow-up,” said Texpert owner Zhang hua.

Bangladesh’s Tahmina Denim Ltd., which works primarily with European brands including Okaidi, made its debut at Sourcing with an array of garment-dyed chinos and acid-washed black denim jeans, each costing from $6 to $15 to produce.

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“Most of the buyers today are looking for fashion items,” said anurag Chauhan, managing director at Tahmina, noting that while it’s been difficult to balance customers’ requests for lower prices with the rising costs of materials, the mood is improving. “Since Thanksgiving, the buy-ers’ sentiments are better.”

Coinciding with their upbeat outlook, buyers were also open to paying more for clothes that offer quality and value. For his premiere at Sourcing, Tushar Puja, head designer of India’s Tushar Group, displayed a variety of items featuring appliqués, discharged prints, embroi-dery and acid washes from his seven Bohemian-inspired brands. One popular style was an elaborate russian peasant coat that integrated 12 meters of fabric, including printed cotton flannel, quilted polyester and acrylic fur. Priced at $22.69 a unit, the coat offers value, he said, and “people are willing to pay.”

For some customers, there is a limit to prices. China’s Tongxiang Mingchenshijia Fur & Leather Co. at-tracted several attendees, including hale Bob’s Daniel Bohbot, with its pur-ple belted mink vest. Yet Bohbot and his colleague deemed its $200 price tag too expensive, instead requesting a cata-logue to peruse.

Exhibitors with lower-priced fake fur offerings fared better. China’s Danyang Good Fortune Garments Co. returned as

an exhibitor after a two-year absence to a positive reception from customers in-terested in its fake fur coats and vests that cost $15 to $20 a unit. Popular styles included a high-neck leopard print cape with black leather buckles and an ivory astrakhan-style coat made of cotton and polyester. Mandy Gao, an assistant at Danyang, said customers’ top concerns were price, style and material.

“If it’s over $25 [a unit], it’s too high,” Gao said. “The most reasonable [price] is around $16 to $17. Most people stay in that range.”

Speed-to-market is also vital. Los angeles-based Trend Chasers, a first-time exhibitor at Sourcing, hoped to appeal to customers that value speed over price with its promise to fulfill orders in six weeks. having manufac-tured clothes for its own brand, called XCVI, as well as private label pieces for Chico’s, Coldwater Creek, Theory and Joe’s Jeans, Trend Chasers specializes in making garment-dyed printed knit-wear in its 60,000-square-foot factory in Los angeles.

For example, the price for a blouse combining a sublimated watercolor print on polyester in the front and a polyester and rayon slub knit in the back, accentuated with fake mother-of-pearl snap buttons, starts at $13 a piece. In comparison to Chinese competitors, Trend Chasers co-owner Chris Myers said, “We’re not the cheapest guys.” What his company can offer is account-ability to meet customers’ strict stan-dards when it comes to working condi-tions and quality control.

“Being transparent, not being a sweatshop and offering great product comes with a price,” Myers added.

The Fiber Price SheeTThe lasT Tuesday of every monTh, WWd publishes The currenT,

monTh-ago and year-ago fiber prices. prices lisTed reflecT The cosT of one pound of fiber or, in The case of crude oil, one barrel.

Price on Price on Price onFiber 02/27/12 01/30/12 02/21/11

coTTon 85.4 cenTs 88.95 cenTs $1.67

Wool $5.58 $5.38 $5.02

polyesTer sTaple 87 cenTs 84 cenTs 90.5 cenTs

polyesTer filamenT 76 cenTs 73 cenTs 79 cenTs

January synTheTic ppi 121.9 120.7 111

crude oil $109.77 $99.56 $84.99

*THe WOOl PRice iS BASed ON THe AveRAge PRice fOR THe Week eNded feB. 24 Of 11 diffeReNT THickNeSSeS Of fiBeR, RANgiNg fROm 18 micRONS TO 30 micRONS, AccORdiNg TO THe WOOlmARk cO. iNfORmATiON ON cOTTON ANd POlYeSTeR PRiciNg iS PROvided BY THe cONSulTiNg fiRm deWiTT & cO. THe SYNTHeTic-fiBeR PROduceR iNdex, OR PPi, iS cOmPiled BY THe BuReAu Of lABOR STATiSTicS ANd ReflecTS THe OveRAll cHANge iN All SYNTHeTic-fiBeR PRiceS. iT iS NOT A PRice iN dOllARS BuT A meASuRemeNT Of HOW PRiceS HAve cHANged SiNce 1982, WHicH HAd A PPi Of 100. Oil PRiceS ReflecT lAST Week’S clOSiNg PRice ON THe NeW YORk meRcANTile excHANge Of fuTuRe cONTRAcTS fOR ligHT, SWeeT cRude Oil TO Be deliveRed NexT mONTH.

Sourcing Specialists Seek Right Formula

SourcingatMAGIChighlighteddutyfreecountriesatitsmostrecentshowinLasVegas.

Bangladesh’sTahminaDenimLtd.,afirst-timeexhibitoratSourcingatMAGIC,useditsgarment-dyedsamplestoattractnewcustomers.

w28a008a;6.indd 8 2/27/12 4:42 PM02272012164319

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WWDSTYLERED HOT ROBERTO: Naomi Campbell

was among those

who turned out for

the Roberto Cavalli

show. PAGE 11

PHOTO BY TYLER BOYE

Sister ActLOS ANGELES — Mamie and Grace Gummer turned the red carpet at

Vanity Fair’s annual post-Academy Awards bash Sunday night into a family

celebration. After all, their mother, Meryl Streep, had walked away with the

best actress Oscar only a few hours before. For more on the action at the

Vanity Fair party, as well as Elton John’s annual AIDS benefit, see page 10.

BINN’S DIGITAL PLAY: If you follow Jason Binn on Twitter, you know that he’s always work-ing on something. One evening he’s tweet-ing from a party in Miami, and the next day he’s talking about a business deal in Los Angeles. His latest news: the launch of Du Jour, a new print magazine that will be published quarterly, in addition to a monthly digital publication and weekly e-mailed newsletter. Du Jour magazine will make its debut this fall, in partnership with Gilt Groupe, Hudson News and duty free retailer Dufry’s James Cohen.

Binn, who became chief adviser to Gilt’s Kevin Ryan in August 2010, said Du Jour will also live on Gilt.com. As he described it, the digital version of the magazine will reach the top 3 million most affluent opt-in Gilt members.

“We’re going to target high-net-worth individuals in key markets around the country,” said Binn. He sort of did the same thing as founder of Niche Media, with publications such as Gotham in New York and Capitol File in Washington. With Du Jour, he’ll focus on New York, Los Angeles, Chicago, Miami, Dallas,

Las Vegas and San Francisco, as well as regional areas including the Hamptons, Aspen, Colo., and Sun Valley, Idaho.

Breaking it down even further, Binn said 235,000 copies of the oversize maga-zine will be sent to readers that fit strict guidelines that include an average home value of more than $1.5 million and av-erage income in excess of $250,000. Also, 15,000 copies will be sold on newsstands (which presumably is where Hudson News comes in). He claims he’s not com-peting with his old colleagues at Niche, adding they are friends and he talks to them all the time. “I’m in the second stage of my career and I’m creating a category,” said Binn. “The last thing I want is for people to think is I’m run-ning another Niche.”

The deal just closed, so now Binn will start hiring editors. Half of each publication will include local content and the other half national coverage of subjects such as fashion, travel, beauty, real estate, entertainment and nightlife. To date, 100 pages of advertising have been sold.

Binn, who always seems to be jug-gling several publishing projects at once, might have at least one more in the works. According to sources, he’s in talks

with Sean Parker on a digital Facebook magazine. The question is, will Mark Zuckerberg “like” it? — AMY WICKS

CONCIERGES A LA MODE: Journalists are meant to be the first in the know, and Les Editions Jalou plans to make that concept into a reality for a new France-based contemporary concierge service, called L’Officiel Conciergerie. It will be run in partnership with luxury con-cierge company UUU starting March 1.

The idea is that journalists from across Jalou’s stable of magazines, which includes L’Officiel, Jalouse, L’Optimum, L’Officiel Voyages, plus the watch magazine La Revue des Montres, will fortnightly update UUU’s team of concierges on the latest premium style tips and hot spots.

“Our strongest value is our informa-tion and capacity of selection,” said Benjamin Eymere, Les Editions Jalou’s general manager, who sees the move as a smart way of diversifying the brand. Eymere described it as a service offered by trendsetters for an “aesthetic” com-munity of movers and shakers that likes to keep on top of the trends. Mundane daily needs — such as finding a plumber — can also be met.

The service operates on a private member system with different pack-ages. Members will also have access to a bloglike Web site, lofficielconciergerie.com, filled with tips. The service is to be rolled out to China next year, followed by Brazil and Russia.

Les Editions Jalou has also launched what it bills as a digital label, dubbed L’Officiel New Talents, geared to promot-ing blogger talents from the women’s life-style and fashion domains. The selection committee for the bloggers includes André Saraiva, creative director of the French men’s fashion magazine L’Officiel Hommes. Men’s bloggers will soon be added.

A same-name print magazine made by the bloggers will be released twice yearly, starting in May, with Marie-José Jalou, Jalou’s president, as its editor in chief.

“We need a magazine that defines the times,” said Eymere, adding the blog-gers get to maintain total independence for their blogs. Members include Kenza Sadoun-El Glaoui, Audrey Lombard, Marie Pottier and India Weber. The label will also represent the bloggers for special commissions with brands. Les Editions Jalou, a family-run concern, was found-ed in 1921.

— KATYA FOREMAN

MEMO PAD

10 WWD TUESDAY, FEBRUARY 28, 2012

Starry NightTHERE SEEMED to be more movie stars at Sunset Tower than there were at Hollywood & Highland Center on Sunday night, when Graydon Carter played host to a plethora of A-list stars, models, athletes, socials and even some royalty at Vanity Fair’s annual post-Oscar bash. Almost everyone who attended the ceremony and then some made a stop at the carefully calibrated celebration, where attendees were required to bring microchipped cards to hand over to security as they entered at their specified times. “I have yet to be invited before 11:30 p.m.,” remarked Ginnifer Goodwin. She needn’t have worried. The lion’s share of star power was still in full force just before midnight. Ben Stiller, Diane Kruger, Sandra Bullock, Kate Hudson and Billy Crystal converged within feet of one another. Meanwhile, Prince Albert and Princess Charlene of Monaco looked right at home as they posed for photos with guests. In one room, Salma Hayek was high-fiving with Chris Evans, who introduced her to a look-alike pal, saying, “He just signed with CAA.” Zoe Saldana stuck close to Bradley Cooper, and Tim Tebow made small talk with Karolina Kurkova. Out on the smoking patio, Seth Rogen and others ate In-N-Out burgers

and miniature grilled cheese sandwiches. The party was a successful generational mix, with attendees like Max von Sydow, Selena Gomez, Quincy Jones and Miley Cyrus.

“It’s so civilized. You never see anyone behaving badly here,” said Kelly Lynch’s daughter Shane, in a dress she had pilfered from her mother’s closet. “I think the dress dictates your behavior. I can only say elegant things tonight,” said Ellie Kemper. Many, like Jennifer Lopez, Cameron Diaz, Shailene Woodley and Emma Stone, opted for wardrobe changes. Diaz came close to a wardrobe malfunction when the strap of her dress came undone, but Stephen Gaghan quickly came to her rescue and re-snapped it. “I think I’m done. We’re so tired,” said Olivia Wilde, who was accompanied by boyfriend Jason Sudeikis. At least as a hotel guest she didn’t have a long journey ahead of her. Less fortunate was Zach Galifianakis, whose chauffeured SUV was stuck in traffic. As her Prius pulled up, Aimee Mann said, “See, I told you the small car would come first.” She playfully leaned out of her window and gave him the bird as she drove away, prompting him to say, “That’s real nice, Aimee.”

Across town at the City of West Hollywood Park, luminaries who didn’t go to

the Oscars, such as Heidi Klum, Neil Patrick Harris, Anna Paquin, Stephen Moyer, Anne Heche and Katy Perry, watched the show from the 20th annual Academy Award viewing party benefiting the Elton John AIDS Foundation. “It’s fantastic, it’s flown by,” said John. “We never thought we’d get to 20 when we started.” Growing from 600 guests last year to over 900 this year, the benefit was estimated to have raised more than $5 million for AIDS research. Heche reflected on her continued attendance at the benefit, “It’s an amazing cause to support. We want to find a cure and [Elton John] is probably going to be the one responsible for finding it.” Klum shared a table with Kyle MacLachlan and Bar Refaeli near Perry, Smokey Robinson and Adam Lambert. Harris and Kurkova aided John with the postshow live auction. Other guests included Ted Danson, Brooklyn Decker, Mena Suvari and Steven Tyler. “Everyone is having such an amazing night,” said Cyrus. “This event is always fun. I’ve been coming every year.” The after party featured a performance by Foster the People and late arrivals Malin Akerman, Whoopi Goldberg, Gwen Stefani and Vanessa Hudgens.

— MARCY MEDINA AND LEXY LEBSACK

eye FOR MORE PARTY PHOTOS, SEE

WWD.com/eye.

Emma Stone in Chanel Haute Couture.

Liam Hemsworth with Miley Cyrus in Roberto Cavalli.

Karolina Kurkova in Armani Privé and Chopard at the AIDS Foundation party.

Gwyneth Paltrow in Tom Ford and Anna Hu.

Heidi Klum in Atelier Versace with Bar

Refaeli in Roberto Cavalli.

Sofia Vergara in Roberto Cavalli at the Vanity Fair party.

Alessandra Ambrosio in Roberto Cavalli at the AIDS

Foundation party.

Katie Holmes in Elie Saab with Tom Cruise in

Giorgio Armani.

Elton John and Quincy Jones

Michael Douglas in Canali with Kirk Douglas.

Diane Kruger in Calvin Klein Collection.

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WWD.COM11WWD tuesday, february 28, 2012

Fashion scoops OSCAR, MILANO: While celebrities in Los Angeles were gearing up to walk the Academy Awards red carpet, designers Domenico Dolce and Stefano Gabbana injected a shot of jet-set glamour at a party at their Gold restaurant in Milan to fete the brand’s spring video and ad campaign “La Bella Estate,” shot in Italy’s Portofino resort town. Monica Bellucci, who fronts the ads, was there, as were sisters Bianca and Coco Brandolini D’Adda, Bianca Balti and former model Marpessa.

“This is like an Oscar party or maybe more,” said Helen Mirren. “This is a world I don’t know, so it’s very exciting for me,” she added, referring to the fashion scene.

“I don’t go crazy for this kind of event but probably it would be fun to go to Los Angeles for the awards,” mused Gabbana, who admitted he was too tired to stay up and watch the Oscars.

Roberto Bolle also was not up for a late night. The dancer said he had an early flight to New York on Monday, as he is starting rehearsals for his upcoming performances with the American Ballet Theatre at the Metropolitan Opera House in May and June. “I’m really happy to go to New York,” said Bolle. “Milan is my town, but New York gives me so much energy and vitality.” — ALeSSANDRA TuRRA

CAuSe CeLeBRe: Who knew the front row of a Roberto Cavalli show could be such a hotbed for political activism? Guests at Monday’s show included Bianca Jagger, who is heading to Brazil in March to address the Global Sustainability Forum in Manaus. While there, she plans to visit Chief Almir Surui to bring attention to loggers that threaten his tribe’s ancestral lands. Jagger will also visit the planned site of the Belo Monte Dam project. “The government and the central bank have a project to build 30 mega-dams in the middle of the Amazon rainforest,” she said. “We are appealing to the president of Brazil, and I hope that she will listen to the voices of the local communities and indigenous people whose livelihood will be put at stake.”

elisa Sednaoui, the face of Cavalli’s new perfume, said she has finished editing her documentary about Egypt, “Kullu Tamam” (“Everything Is Fine” in English), and hopes to start screening it soon, even if there are no major film festivals scheduled before Cannes in May. “Egypt is a topic I would like to talk about now. I think it’s important, because the elections are going to be over in June,” she explained. Her next film project could also have political overtones. “I cannot say too much, but it’s about a character who was very important in the history of South America, and I play a French lover of his that he meets during his trips,” she said.

elettra Wiedemann said she was headed to Paris for a series of shoots, including one for cosmetics brand Lancôme, but she won’t be bringing her pop-up restaurant, Goodness, to Paris Fashion Week just yet. “It takes a long time to build one. I’m hoping to do one in Paris in the fall, but I still have to figure it all out,” she said of the eatery, which uses locally sourced ingredients.

Diesel chief Renzo Rosso and models Alek Wek and Nadège were among those who turned out for the show, which closed with Naomi Campbell parading in a floor-sweeping gown. The top model declined all interviews before the show, but Cavalli took the time to sing her praises. “She could receive a fashion Oscar for how she interprets the clothes on the runway,” he said.

Responding to a new wave of rumors about a possible sale of his company, the designer reiterated that “this is not the moment to sell, perhaps one day, after I’ve asked my children whether they want to continue in this business or not, but not now. And don’t talk to me about bankers or investors…”

— JOeLLe DIDeRICH AND LuISA ZARGANI

PICTuRe THIS: Giorgio Armani turned to director Luca Guadagnino for a three-minute film, called “One Plus One,” to illustrate his spring collection. Filmed in Italy’s Mantua and Cremona, close to Armani’s hometown of Piacenza, the short is “the story of a suspenseful and unsettling love triangle,” said the company. “Today, fashion needs to open itself to new languages,” said the designer. “Cinema is the form of expression I have always felt the closest to. Working with Luca Guadagnino, I have had the opportunity to transform the atmosphere of my collection into a story, and it has been a stimulating experience.”

The “I Am Love” director, who said he took cues from his peer Chantal Akerman, developed a crescendo throughout the movie, until a mystery is solved at the end. The interior scenes are filmed in Cremona’s Museum of the Violin, a standout rationalist building. The film stars Milou Van Groesen, Diego Fragoso and Vinicius Sales. — L.Z.

BASKeT CASe: Designer Tracy Reese has joined forces with Clos du Bois to create a picnic basket fit for a fashionista and a foodie.

Incorporating a classic floral print from her collection, Reese has lined the interior of the wicker basket, which holds two bottles of Clos du Bois wine, two wine glasses, two napkins matching the interior fabric, a corkscrew and a bottle stopper.

“I totally love wine but I’m not a heavy drinker,” Reese told WWD. “But who doesn’t enjoy a great picnic?”

The basket, which includes brown leather handles, brass furnishings and a pink leather patch that says: “Clos du Bois Chic Picnique by Tracy Reese,” will retail for $135 and be available at

Reese’s Meatpacking District store in New York starting March 1. It can also be purchased at closdubois.com.

— ALeXANDRA STeIGRAD

MuM’S THe WORD: Rick Genest, aka Zombie Boy, who gained notoriety after appearing in Lady Gaga’s video for “Born This Way,” lets his tattoos speak for himself. Spotted at the DSquared show — and he’s hard to miss with his skeletal body decorations — Genest kept his words to a minimum, hardly looking up from his handheld. This much was to be gathered, though: he’s working on “a music project” and “a contract with Universal.”Neil Barrett sat a few seats away to lend his support to DSquared designers Dean and Dan Caten. “I already finished the collection, so I’m free to do this now,” said the personable designer, who shows his women’s wear line in Paris. — L.Z.

KeeP AWAY: Ahmed Sankari, chairman of Paris Group, which owns the Gianfranco Ferré brand, attended the show on Monday, but all attempts to approach him were firmly thwarted by company handlers. Sankari’s isolation did nothing to help dismiss increasing speculation as to how Paris Group intends to develop the

storied label. As reported in

January, the three state-appointed administrators who oversaw the sale of Ferré in February last year have asked the court of Isernia, Italy, to “conservatively sequester” the brand and its assets to avoid its further impoverishment. Needless to say, the commissioners, who are charged with monitoring Ferré for 24 months after the sale, were not at the show. — L.Z.

WINTeR WONDeRLAND: Anyone seeking a bit of fun escapism during Paris Fashion Week should head to the Hôtel Plaza Athénée. From today to March 10, it will operate an ephemeral restaurant, Les Bancs d’Hiver (or “Winter Benches” in English), located on an ice rink in the hotel’s center. After being greeted with a glass of mulled wine, guests will then be carefully led across the ice to their tables by hosts dressed in moon boots and puffer jackets by Jean-Charles de Castelbajac for Rossignol. On the menu, which costs 120 euros, or $160.85 at current exchange, will be chestnut soup, raclette, roasted pears with a traditional cake from France’s Savoie region and white wine. The restaurant will be open starting 8 p.m. daily. — KATYA FOReMAN

Naomi Campbell

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11WWD, TUESDAY, FEBRUARY 28, 2012

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anymore,” Nolte said. “It is more of a mature industry, so the valuations get handled differently. You’re not going to have the large [earnings] multiple, you’re going to be looking for dividend or dividend growth.”

Some are trying to buck that perception.Ron Johnson, the new chief executive officer of

Penney’s — which drew down its cash position by $1.12 billion over the past year to $1.51 billion— will now use the money flowing through the business to dramatically reinvent the company, simplifying its pricing and setting up 100 shops-in-shop in place of 400 brands. Penney’s plans to fund its transformation through cash from op-erations, beginning with capital expenditures of $800 million this year alone.

Increasingly, it might take such grand plans to get the attention of Wall Street. And even then sharehold-ers simply won’t pay as much for companies that don’t have a clear growth path in front of them. Investors who are keen for expansion will move on to other industries showing top-line growth and eventu-ally be replaced with share-holders who are looking in-stead for payouts, such as big dividends.

Chico’s FAS Inc., for one, is trying to hold on to its growth profile, plotting dramatic store expansion with 120 new doors annually “for the foreseeable future.” The retailer also shelled out $213 million last year to acquire Web and catalogue player Boston Proper, draw-ing its cash position down 54.8 percent over the year to $248 million.

Few other companies are contemplating such store growth, leaving most of retail left to ponder how they can make their existing operations more productive.

Macy’s Inc. is trying to have it both ways, spinning off cash as it also prepares for business expansion.

“We’re fortunate in that we have lots of cash we’re able to invest in not only sustaining the business, but growing it and at the same time have cash to return to shareholders,” said Karen Hoguet, chief financial offi-cer of Macy’s Inc., in an interview prior to the release of the retailer’s fourth-quarter results last week. “When I started here 30 years ago, growth was always defined as the number of new stores. Today it’s different. [There’s] a much greater focus on increasing the productivity of

the assets we have.”Hoguet said, “A lot of

the growth is coming from comp-store sales, which is great because you’re also increasing the productiv-ity, but it’s also coming from the whole world of the Internet and omni-channel, which is a great way of growing without having to put more real es-tate in play.”

Macy’s cash balance rose by $1.36 billion over

the past year, much of which was due to the $800 million the company raised in the fourth quarter to retire debt during the first half of 2012. The department store re-cently regained its investment grade credit rating, mak-ing it cheaper for it to take on debt to cover its funding needs. Macy’s also purchased about 16.4 million of its own stock last year for about $500 million.

The retail landscape today, dominated by large com-panies with a national reach, was set by investors who sought out expansion.

When Wall Street swept into retail in the boom years of the late Eighties and early Nineties, it was chasing the mushrooming square footage growth and, being Wall Street, pushed companies to their logical extremes. Mom-and-pop shops were squeezed out and sectors consolidated as strong players bought out com-petitors and rolled out new concepts. The suburbs were overrun with malls, lifestyle centers and freestanding stores, and each year retailers reported sales increases and more-ambitious expansion plans.

Now that appears to be mostly over and investors are seeing retail in a new light.

“It’s a different kind of shareholder than it was,” said Kenneth Stumphauzer, who until recently was an analyst at Sterne Agee. “There were more growth investors four years ago. Now it’s a lot more value in-vestors. Once you move to start catering to more value investors, they want to see more discipline in capital deployment. They’re predisposed to dividends.”

Kohl’s is one of the industry’s more aggressive share repurchasers and has also been boosting its dividend. Last year, the retailer cut its cash balance by 47.1 percent to $1.21 billion as it spent $2.3 billion on its own stock.

The company also said it would begin testing new store layouts and funneling more money to its Web oper-ations while cutting back on store openings and remod-elings. And even as Kohl’s seeks to rejigger its approach, it is making great effort to keep its investors happy.

“We do expect to generate over $1 billion in free cash flow in 2012, which will fund the growth initia-tives…as well as provide the ability to raise our divi-dend to shareholders 28 percent and continue to re-purchase shares of our stock,” said Kevin Mansell, chairman, president and chief executive officer, on a conference call. “Returning excess cash to sharehold-ers will remain consistent priorities for the company.”

Given the shifting landscape, keeping afloat and hav-ing a little left over for shareholders could be as good as it gets for many retailers.

“It’s pretty hard to be successful in this sector year in and year out, particularly against the backdrop of it being mature and not [having] a lot of growth to grab,” said Kristi Broderick, a debt analyst at Fitch Ratings. “In that vein, there’s something to be said for having consistent cash flows…putting out stable numbers.”

Broderick said retailers that were appropriately conservative and saved up cash during the financial crisis and are now getting back to a more normal posi-tioning and could start doing some catch-up spending on their business.

“It’s not so much like they’re getting reckless with the cash, they’re probably going back to something more normal,” she said.

Whatever normal is these days.

12

Cash Stash: Retail by the Numbers

SOURCE: THE COMPANY’S MOST RECENT QUARTERLY REPORT. * INCLUDES MARKABLE SECURITIES OR SHORT-TERM INVESTMENTS.

FASHION’S PIGGY BANKA look at the cash and cash equivalents at the end of 2011 versus the end of 2010, in millions of dollars. CUTTING BACK ON THE CASH HORDE 2011 2010 CHANGE

TARGET * $794 $1,712 -53.6%

CHICO’S * $248 $549 -54.8%

KOHL’S $1,205 $2,277 -47.1%

SEARS $747 $1,359 -45.0%

J.C. PENNEY $1,507 $2,622 -42.5%

DILLARD’S $224 $343 -34.7%

ABERCROMBIE * $668 $826 -19.1%

LIMITED BRANDS $935 $1,130 -17.3%

TOTAL $6,328 $10,818 -41.5%

STOCKING UP ON CASH 2011 2010 CHANGE

MACY’S $2,827 $1,464 93.1%

NORDSTROM $1,877 $1,506 24.6%

JONES GROUP $239 $201 18.9%

GAP * $1,885 $1,661 13.5%

TOTAL $6,828 $4,832 41.3%

{Continued from page one}

By VICKI M. YOUNG

MORE THAN ONE-THIRD of mobile prod-uct owners are using their devices for mo-bile commerce, according to a study from the Consumer Electronics Association.

The study also found that of the consumers surveyed, each planned to spend $575 on mobile purchases in the next 12 months.

Currently, there are at least 216 mil-lion owners of mobile devices, including tablets, smartphones or cell phones. The forms of mobile commerce consumers are engaging in range from shopping or

purchasing online or in-store, using or redeeming coupons or gift cards, and searching for coupons.

The CEA said that, of those who en-gage in mobile commerce, consumer electronics and apparel-footwear are the categories most often “browsed-shopped” for on mobile devices.

Of those who are hesitant to pur-chase online, more than 35 percent attributed that to their concern over security issues. Of those who use the Internet on a mobile device, 27 percent said they are comfortable with current authentication safeguards. Still, at least 42 percent of mobile consumers agree

that fingerprint is the best way to au-thenticate mobile purchases.

Separately, eBay Inc. said Monday during the Mobile World Congress in Barcelona that it is expecting to do $8 billion in mobile commerce retail vol-ume in 2012, with its PayPal operation forecast to process $7 billion in mobile payment volume. In 2011, eBay mobile commerce generated $5 billion in retail volume, while eBay’s PayPal mobile busi-ness recorded $4 billion in payment vol-ume. The company said its eBay mobile apps have been downloaded more than 70 million times.

EBay also said it has a new partner-ship with Three.c.uk, a wireless carrier in which the deal is structured so that Android smartphones will be preload-

ed with eBay apps. Some of eBay’s new merchant partners include Yotel and Spanish ticketing firm Entradas.com via the PayPal app. In addition, there are up-dates to all eBay mobile apps, which now allow consumers to calculate shipping, research pricing trends and enable push notifications on bids.

John Donahoe, eBay’s president and chief executive officer, said, “We’re seeing a new retail paradigm emerge through mobile. Consumers are in control, and they want to shop anytime, anywhere.... EBay is driving mobile commerce inno-vation, partnering with carriers and mer-chants to build a new retail ecosystem that drives growth by delivering anytime, anywhere value and rich multichannel shopping experiences for consumers.”

Mobile Commerce On the Rise

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Stock buybacks have been a popular use of retailers’ cash.

Kohl’s spent $2.3 billion on its own stock last year.

Macy’s is working to boost its store productivity in its quest for growth.