Sitting Pretty

WWD

It’s an evergreen concept that used to have a name: “tabletop dressing.” This exquisite look from Valentino’s special New York couture collection by Maria Grazia Chiuri and Pierpaolo Piccioli illustrates the point perfectly, further explanation unnecessary. For more, see pages 4 to 7.

WEDNESDAY, DECEMBER 31, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY

ILLUSTRATION BY STEVEN STIPELMAN

THE IPO MARKET IS EXPECTED TO REMAIN

STRONG IN 2015. PAGE 12

THE IPO MARKET

FEELING BULLISH DRIVING RODEO

THE STOREFRONT DESIGNS ON RODEO DRIVE CAN BE BROKEN DOWN INTO SOME CLEAR-CUT CAMPS. PAGE 11

GILLES DUFOUR TALKS ABOUT HIS

EXPERIENCES DESIGNING FOR

CHINESE KNITWEAR FIRM ERDOS. PAGE 9

CHINA HAND

WWD.COM2 WWD WEDNESDAY, DECEMBER 31, 2014

Nilit Aims to Keep Things Cool With Innergy

Consumer Confidence Rebounds in Dec.By VICKI M. YOUNG AND ARNOLD J. KARR

CONSUMERS WERE moderately optimistic again in December.

The Conference Board’s Consumer Confi dence Index rose this month after declining in November. The index is now at 92.6, up slightly from November’s reading of 91. The present-situation component rose to 98.6 from 93.7 last month, while the expectations portion fell less than a point to 88.5 from 89.3. The November reading was adjusted upward from the original fi gure of 88.7 after hitting its highest level in seven years, 94.1, in October.

Lynn Franco, director of economic indicators at the Conference Board, said, “Consumer confi dence rebounded modestly in December, propelled by a considerably more favorable assessment of current economic and labor market conditions.”

The present-situation index is now at its highest level since February 2008. Helping consumers feel better and more confi dent is their more positive as-sessment of the job market. Those who said jobs are “plentiful” rose to 17.1 percent from 16.2 percent.

Longer term, or six months out, consumers were less optimistic about the jobs front, with those who said they anticipated more jobs in the months ahead falling to 14.7 percent from 15.5 percent.

Chris G. Christopher Jr., director of U.S. consum-er economics at IHS Global Insight, said consum-er confi dence is “almost 19.5 percent higher than it was a year ago.” He cited plummeting gasoline

prices and “well-received employment reports” as the main drivers of confi dence.

Falling gas prices also helped deliver a fair-ly strong holiday season, and the International Council of Shopping Centers and Goldman Sachs on Tuesday said an increase in gift-card purchases for the season should provide retailers with addi-tional opportunities to build revenues in January and the months beyond.

Michael Niemira, research consultant to ICSC and principal of The Retail Economist LLC, noted that 11 percent of shoppers waited until the fi nal week before Christmas to begin their buying. “Looking ahead to January, consumers reported that the share of their total holiday gift purchases that went into gift cards rose to 24.6 percent com-pared to 23.7 percent in 2013, reinforcing the im-portance of post-Christmas shopping and gift-card redemption,” he said.

Although the purchases are already made, re-tailers can’t recognize them as revenue until they are redeemed.

In the seven days following Super Saturday on Dec. 20, sales were up 2.2 percent from the compa-rable 2013 week and essentially fl at — up less than 0.1 percent — from the prior week. The numbers are adjusted to account for the greater number of shopping days before Christmas last week in com-parison to its 2013 counterpart.

Sales were strong at wholesale clubs and ahead at furniture stores but weak at department, apparel and nonapparel specialty stores.

By EMILY BACKUS

MILAN — A nylon yarn containing a mineral that turns body heat into infrared light is showing prom-ise for improving the athletic performance and comfort of its wearer.

Innergy yarn, made by Israeli nylon fi ber and plastics maker Nilit, signifi cantly improved blood circulation, body-heat regulation and physical en-durance in a small double-blind clinical study con-ducted in Italy on 10 volunteers, the company re-vealed at a presentation here.

In a phase of the study measuring cardiovascu-lar effects, clinicians found Innergy improved oxy-gen transport to muscle tissues, reduced the con-centration of lactic acid in the blood and slowed the process of reaching anaerobic metabolism.

“If it had this kind of effect on a [cardiovascular] patient, it would be one of the best pharmaceuticals that we have,” said cardiologist Piergiuseppe Agostoni, who conducted the cardiovascu-lar phase of the study. He also cau-tioned, “But we can’t say that.”

Agostoni is the head of conges-tive heart failure and critical car-diac care at the Istituto Centro Cardiologico Monzino in Milan. He described the study as a kind of “fun game” conducted after hours on colleagues and himself in the clinic’s laboratory. He added the study yielded indicators impressive enough to merit further investiga-tion — more directly for athletic performance, but also for possible health applications like cellulite and circulatory problems.

Nilit said it was conducting an additional study on athletic implications at North Carolina State University in the U.S. and has plans to test Innergy on cellulite next year.

The multiphase Italian study coordinated by Maurizia Botti, a fashion professor at Milan Polytechnic, also yielded intriguing results in a gar-ment comfort, heat and dampness test carried out by chemical and materials engineering specialists from Turin Polytechnic.

Three minutes before the end of the physical ac-tivity, the Innergy yarn surpassed classic nylon in breathability, dryness, skin feel and heat comfort. Just 20 percent of the volunteers felt hot at the end of exercise when wearing Innergy versus 60 percent for the placebo.

Italian textile mill Maglifi cio Ripa produced the fabric using the Innergy yarn. Managing director Luco Bianco said many months of testing and de-velopment were put into a cloth that was comfort-able and light. But the principle behind Innergy’s performance compared with the placebo garment is that the thermoreactive mineral inside the fi ber ra-

diates far infrared energy when it comes in contact with body heat. FIR is the warming part of the sun’s light spectrum and people perceive it as heat. It has been shown to act as a vasodilator, promoting circu-lation and increasing oxygen levels in the tissues. FIR saunas and other devices have been developed for therapeutic use, though they are not yet widely embraced by Western conventional medicine.

WWD asked competitive bicycle racer Ferdinando Pertusio, who had no prior familiarity with the product, to try out sample garments made of Innergy for his impressions.

“I’m always very skeptical about these things,” he said before donning a long-sleeve shirt and a pair of socks for a training session.

Afterward, he wrote in an e-mail, “I’m pretty surprised by how good it is. I can’t quantify any per-formance gains...but there is defi nitely something going on here at a minimum on the thermal level.”

Pertusio said the unusual warmth of the socks could make it possible to train longer in the cold and

“breathing also felt easier,” although he was not sure of the cause.

“It also just feels fantastic both on the skin and to touch, almost like not having anything on,” he added.

Nilit admitted it is neither the only nor the fi rst company to utilize thermoreactive minerals in cloth-ing fibers to make FIR-emitting garments. California-based Celliant claims nine clinical studies dating back to 2003 demonstrate the effec-tiveness of its FIR-emitting gear and claims commercial partners like Puma, Asics and Jockey.

What makes Innergy different is that its mineral is in the poly-

mer itself, and thus will never wear out in the wash or with use, whereas rivals use fabric treatments to saturate existing fi bers, said Marco de Silvestri, European sales manager for Nilit Fibers.

That said, Celliant claims its method of “loading fi ber” with thermoreactive minerals is also permanent.

Nilit is looking for its own major sports appar-el partners to bring Innergy to stores. Michal Ron Gavish, global marketing director for Nilit, said her ideal would be to work with North American lead-ers Under Armour and Lululemon.

“We have a goal of selling 500 tons per year from 2015,” or enough to produce millions of garments annually, from sports gear to hosiery, socks, shapers and base layers, Ron Gavish added.

Ron Gavish said Nilit’s nylon fi ber business, which is focused on a single polymer called nylon 6.6, has a global turnover of roughly 300 million euros, or $365 million, representing about half of Nilit’s total sales, including plastics. In the U.S., Nilit has more than a 50 percent market share of the nylon 6.6 fi ber market and 23 percent in Europe, according to Gavish.

ON WWD.COM

THE BRIEFING BOXIN TODAY’S WWD

Nilit reveals its Innergy yarn improves blood circulation, body-heat regulation and physical endurance in a clinical study conducted in Italy on 10 volunteers. PAGE 2

Employment reports and falling gas prices help consumers’ confi dence increase slightly from November. PAGE 2

Bold bodices: Designers showcase everything from fi ne-dining jewels to feminine fare to futuristic fun in this month’s rounds of pre-fall collections. PAGE 4

A major exhibition in Copenhagen confronts the reality of animal slaughter while admiring the beauty and unrivaled warmth of fur. PAGE 8

Gilles Dufour renewed his contract with cashmere giant Erdos Group, extending his tenure another three years while the company looks to extend its market into Europe. PAGE 9

Michael Bloomberg reinstated a Big Brother-esque policy of allowing workers to see each other’s time stamps. PAGE 10

Canadian retailer Simons will expand into fi ve cities across the country over the next two years, bringing the total store count to 14. PAGE 10

Queen Elizabeth II handed down honors to members of the art and fashion worlds as part of her annual New Year honors list. PAGE 10

Rodeo Drive now boasts more new tenants and storefronts than ever, with many designers making pricey renovations topping $20 million. PAGE 11

U.S. retailers faced a slew of challenges, leading to a bumpier road than expected this year. PAGE 12

Tech companies dominated IPOs in 2014. PAGE 12

A fur look in London. For

more, see WWD.com.

THEY ARE WEARING: Fur is a visual barometer, a seasonal wardrobe element that appears the moment the mercury plunges. For more, see WWD.com.

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WWD WEDNESDAY, DECEMBER 31, 20144

Sitting Pretty

ILLUSTRATION BY STEVEN STIPELMAN

WWD WEDNESDAY, DECEMBER 31, 20144

Sitting Pretty

ILLUSTRATION BY STEVEN STIPELMAN

WWD.COMWWD WEDNESDAY, DECEMBER 31, 2014 5

Sitting Pretty

Carolina Herrera’s high

elegance.Oscar de la

Renta’s abstract embroidery.

Michael Kors’ haltered state.

On him: Brooks Brothers

Jean Cocteau’s Beauty knew it. Scarlett O’Hara knew it. Tom Jones’ Mrs. Waters knew it. (Or their celluloid costumers did.) So did Sargent’s Madame X, her iconic head-to-toe stance in the painter’s mesmerizing painting notwithstanding.

What they knew: the value of a good bodice, one with some degree of detail, whether froth, jewelling or provocative neckline, a bodice that delivers visual interest while the lady sits. “Tabletop dressing” such looks were once called. And are again, or at least they were during the December round of pre-fall presentations. On successive days, Lela Rose and Michael Kors invoked the retro term for an evergreen concept. How could we not plunge into the delightful possibilities? To date, the pre-fall collections — plus Chanel’s Alpine Métiers d’Art and Valentino’s New York couture — have offered a wealth of fine-dining gems, from all-out, gloriously feminine fare to those with a soupçon of futuristic chic.

— BRIDGET FOLEY

6 WWD WEDNESDAY, DECEMBER 31, 2014

Sitting Pretty

6 WWD WEDNESDAY, DECEMBER 31, 2014

Sitting Pretty

WWD.COM7WWD WEDNESDAY, DECEMBER 31, 2014

Futuristic triptych: Christian

Dior, Osman and Alexander

Wang.On him:

Saint Laurent

Chanel’s Métiers

d’Art Alpine pictorial.Badgley

Mischka’s glam tank.

Lela Rose’s elegant angles.

ILLUSTRATIONS BY STEVEN STIPELMAN

By MILES SOCHA

COPENHAGEN — At a major fur exhibition at The National Museum here, visitors can try on donated coats and pose for self-ies — in options ranging from a sumptuous swing style in ocelot to a mink redingote that has been purposely caked in fake blood.

“Fur: An Issue of Life and Death,” which runs through Feb. 22, may be the most ambi-tious and unfl inching exhibition on the subject ever mounted. It exalts the beauty and unrivaled warmth of fur while confronting the reality of animal slaughter, exemplifi ed by one display of a mannequin draped in a hooded coat made of 16 red foxes, oblivi-ous to the plaintive stare of a taxidermy specimen on a plinth.

Housed in an institution dedicated to cultural history, and cocurated by a prehistoric anthropologist, it explores how fur hunting and trading has played a crucial role in the lives of Arctic people, in the coloniza-tion of far-fl ung territories, and in the economic development of modern nations, especially Denmark, which controls about 30 percent of the world’s mink trade and breeds about 17.2 mil-lion of the animals per year.

“It’s not our purpose to tell people if they should be pro or they should be con,” said Ulla Mannering, the anthropolo-gist and a senior researcher at the museum and the Danish National Research Foundation’s Center for Textile Research. “We want to show the possibili-ties and the different voices.”

While covering a large sweep of history — and showcasing what’s billed as the largest collec-tion of historical furs in the world, spanning about 2,000 artifacts — the free exhibition welcomes visi-tors with a cacophony of current opinions, priming them to con-front how they feel. Fashion de-signers, fur producers, politicians, researchers and animal rights activists state their case in video interviews or quotes splashed on giant portraits.

“About 40 voices for and against fur,” Mannering said during a private tour with Anne Lisbeth Schmidt, a museum con-servator and cocurator. “There’s so much emotion involved be-cause we love animals, and we also use animals….We have to accept that this is a part of our everyday life. We have managed to get people contributing to this ethical discussion.”

Danish model Anne Lindfjeld posed naked for her portrait, hugging her knees and showing off pale skin etched with mul-tiple tattoos. “Ink not mink,” her mantra reads.

Quotes borrowed from design-ers Karl Lagerfeld and Stella McCartney express divergent viewpoints. “In a meat-eating world, wearing leather for shoes and clothes and even handbags, the discussion of fur is childish,” says the former, while the lat-ter pleads, “When you consider what the animals endure, there is nothing fashionable about fur — please shun fur.”

The museum also invited Anima, a radical Danish animal rights group, to participate. Its video testimony blares from a screen opposite a taped inter-

view with a mink farmer stand-ing in front of a huge barn lined with straw pens. According to Mannering, all conversations were civilized and the exhibi-tion has been well received by both camps.

Beyond the ethics exhibit, visitors enter a vast, darkened room flanked by panoramic displays of fur ensembles, con-temporary styles at one end and historic artifacts at the other. In between are walls explaining the economics and mechanics of

fur breeding and harvesting, in-terspersed with stations where visitors can fondle velvety chin-chilla and courser pelts, as well as study taxidermy specimens.

In the modern section, cura-tors assembled an array of furs, including a mink-and-chiffon style by Jean Paul Gaultier, fantasy creations by avant-garde Danish designer Nikoline Liv Andersen and looks supplied by Saga Fur and Kopenhagen Fur that were created via a range of techniques, from dyed to patchworked.

Despite their delicate nature, most furs are displayed in the open, mainly because “some of the beauty disappears when you look through glass,” Schmidt said. This includes rare speci-mens worn by polar peoples from Scandinavia, Greenland, Siberia, East Asia and North America. Some are 175 years old, and most are extremely fragile.

Considering the meager tools used to create them, these intri-cate parkas, trousers and boots put some modern-day creations

to shame. And though their primary purpose is protection from extreme cold, the gar-ments announce the sex and ethnic identity of the wearer, and also telegraph social stand-ing and occasions.

“The clothing means a lot to these people,” Schmidt said, noting the “intensive” sewing required to create elaborate in-tarsia designs. She also said the presence of white, fang-like gus-sets worked into many parkas are believed to echo the tusks of Arctic walruses. “The Inuit believed that if you dressed nicely, the animals would come to you,” she explained with a smile. Function also played a role: Fringe, while visually ap-pealing, was designed to keep cold air from drifting under gar-ments. Sealskin was prized for its waterproof qualities.

These polar garments were collected with a scientifi c pur-pose and analyzed with comput-ers and X-rays to understand their construction. Some coats have hoods trimmed in wolver-ine fur because it easily sheds the ice that collects from breath in subzero climates, while cuffs were often ringed with dura-ble dog fur. “Nothing went to waste,” Schmidt noted.

Fake fur is also represented — “animal-free” fur is a new term gaining popularity in Denmark, Schmidt noted — in-cluding coats visitors can try on in front of an infrared camera, revealing that they leak heat, unlike real furs.

Not that imitation is any-thing new. The exhibition in-cludes a hat from the Bronze Age, circa 1,400 B.C., with a shaggy, furlike texture created with knotted threads. “The fi rst fake fur in Scandinavia!” Mannering enthused.

The oldest real fur fragment on display, hung from a garland of preserved hazelnuts and amber beads, dates to 3,200 B.C. It resembles a blackened banana peel and retains only a few hairs. A modest artifact, it underscores how fur has long symbolized prestige, which in turn propelled global trade and colonization. Beaver belts were the original currency in Canada, Mannering noted, and fur, not gold, drove the early settlement of Alaska.

As for modern-day econom-ics, fur is Denmark’s third-larg-est farm export, sold mainly to China, Hong Kong, Russia and the U.S., according to the mu-seum. And in 2013, Danish mink fetched about $2.24 billion at current exchange rates.

WWD WEDNESDAY, DECEMBER 31, 20148

Danish Fur Exhibition: Ethics vs. Aesthetics

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There’s so much emotion involved because we love animals,

and we also use animals.— ULLA MANNERING, THE NATIONAL MUSEUM

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A fox-fur coat faces off with a taxidermy animal.

Fur samples.

A 1999 Jean Paul Gaultier dress and a 2010 gray mink jacket by Dennis Lyngsø.

Polar explorer Knud Rasmussen

donated this circa-1926

caribou-skin parka from

northern Alaska. To the right is

a walrus-gut Inuit parka with

watertight seams.

FOR THEY ARE WEARING ON FUR, SEE

WWD.com/fashion-news.

WWD.COM9WWD WEDNESDAY, DECEMBER 31, 2014

By MILES SOCHA

PARIS — In his cozy, art-stuffed apartment, Gilles Dufour unfurled a small bolt of golden silk, revealing hand-painted butterflies alighting here and there on the gauzy cloth.

It’s one of his latest fi nds from the giant fl ea markets of Beijing, where he returns once a month as the full-time artistic director of Chinese cashmere giant Erdos Group. The French designer, who quietly took on the role in 2008, just renewed his contract for another three years, as Erdos charts steady growth in Asia and is poised to expand into Europe.

Perhaps best known for his long career at the elbow of Karl Lagerfeld, Dufour went on to helm Balmain ready-to-wear and a signature label before a chance speaking engagement in front of Chinese manufacturers landed him an offer from Erdos that he couldn’t refuse.

“They’re extremely nice people,” he said. “They have huge factories — it’s incredible. They bought all the newest machinery from Germany, from Italy, all the best knitting machines. They are really up to date.”

Among the fi rst Europeans to become a creative director at a big Asian manufacturer, Dufour has seen the Chinese market become more sophisticated and competitive.

He credited his boss, Yiling Zhang, and Yiling’s wife, Wang Zhen, president and owner of its elite 1436 line, for steady growth of 15 to 20 percent a year for Erdos, which generates revenues of about 125 million euros, or $155 million at current exchange.

While the Erdos brand is about 30 years old, Dufour has brought his European sensibility and a trendier

approach to what he described as its “old and classic cashmere image.”

While he has referenced modern artists such as Mark Rothko and Josef Albers, Dufour is equally inspired by Chinese culture, cognizant that animals and fl owers are among its treasured motifs. He incorporates them into novelty sweaters and also designs sleek, double-faced toppers and handsome leather-trimmed overcoats.

Pointing to one catalogue — featuring Chinese model Liu Wen, the face of the brand — he singled out a preppy pink cardigan with a twist. “I transgress. I’ve taken the cable knit from Ralph Lauren, but I’ve added real jade buttons and the shape of a Chinese worker’s jacket,” he explained.

Interviewed in early December, Dufour was putting the fi nishing touches on fall and winter 2015 ranges for what he called “buying conventions,” which attract 900 buyers to sessions in January and February.

Erdos sells its branded sweaters to about 2,000 doors, including a new fl agship in Tokyo. It also produces knitwear for a number of European brands and is slated to open a showroom in Milan in 2015, Dufour said.

In a wide-ranging interview, the affable designer refl ected on his experiences in the vast Chinese market:

WWD: How has the collection evolved since you started?Gilles Dufour: Most of my collections are based on the softness of cashmere, the luxury of cashmere. But it’s expanding quite fast. We set up a new category of cashmere coats four years ago, and [Erdos has] developed very good production methods. We make very high-quality products both in the manufacture and

workmanship, even with non-cashmere items such as silk, cotton and linen. We’re also doing a lot of accessories in cashmere: scarves, hats mixed with fur, fur collars, knitting furs with cashmere — all kinds.

WWD: How interested are Chinese consumers in the designers behind the label?G.D.: [Erdos is] trying to make it known. They always put my photo in the catalogues, and I have my little labels always attached to the sweaters “Made by Dufour.” And I’m doing a lot of television and Vogue and things like that. [Erdos is] quite interested to know the same questions as you.

WWD: Have you always been partial to sweaters?G.D.: When I started at Chanel, I did all the knitwear. So, I was designing all these lovely little sweaters — in bright colors with contrast trim, very close to the body, very sexy — so they were a huge success. They told me I was good at cashmere. It’s an easy thing to do because it’s so soft and nice to wear and warm. When I was a teenager and got good grades at school, my father used to take me to Anan, a boutique in Paris, and buy me a cashmere sweater. I thought it was the peak of luxury.

WWD: How has the manufacturing scene and capability changed since you started with Erdos?G.D.: Erdos was the best

cashmere manufacturer long before I started with them. They control the process from the raw material, and they supply many famous brands. They are

great technicians. They know all the latest finishes, the latest treatments, washes, and they’re equipped for hand embroideries and finishing. They are wonderful at experimenting, creating incredible things, really.

WWD: How are consumer expectations evolving in China?G.D.: China is a huge market with a variety of customers. They are becoming more and more educated about fashion and trends. Generally speaking, the mature customer loves designs with more details, print and embroidery, and even Swarovski elements. The young customer loves more simple shapes and designs. The consumer is becoming more comfortable with herself. They are no longer only copying the big foreign brands.

WWD: Does such a big market demand lots of variety in design?G.D.: We are doing huge collections, like 600 to 800 pieces per collection, for different markets. Also, we are doing men’s collections, which I’m supervising but very lightly. With women’s, I’m completely hands-on. The company believes that design should drive the business. So, they let me do some experiments, some crazy things. Can you imagine we have about 100 colors to play with every season?

WWD: Is your approach different when you are doing a collection for a European or global brand?G.D.: I’m more careful about

what they expect me to do. I have to deliver the right things — they have to sell. That’s the most important thing in China. I’m not doing commercial in a boring way, but things that can be worn and worn for a few years, not only for six months. People are not as rich as they are in Europe, so they don’t understand the need to change fashion every five seconds. So, I’m trying to be very classical and high quality in the way of Loro Piana and also [create] some trendy things in the way of Gilles Dufour.

WWD: How do you tap into trends in China?G.D.: I look at the street; I look at the magazines; I look at the way people are dressed; I go to the flea markets. I go to the Museum of Contemporary Art in Beijing, [and] I go to the Peking opera, which makes me understand the Chinese people. They have a huge civilization, and they are very sophisticated. Since the Cultural Revolution, they have lost a lot, so they are relearning. I’m very [interested in]

Chinese people, by what they like, the colors, the shapes. For example, women will show their legs but are very modest when it comes to the bosom.

They are very touched by poetry. Each time you put some poetry in a sweater or a love story behind it, they appreciate it very much. It has to be poetic — like, for instance, when I do a sunset, a forest in the springtime, things that are a little romantic.

WWD: Have you traveled a lot within China? Can you share some of your impressions, favorite things?G.D.: I’ve worked in Hong Kong, in Shenzhen, in Shanghai, but mostly I stay in Beijing. Beijing is a good place for working. They have a huge flea market where I go and buy antiques, silk, old fabrics, which can be an inspiration, old embroideries. I go to the Peking opera a lot. Now, even in the provincial cities, you have malls, which are becoming more and more international, with different brands. That’s why Erdos wants to be European-minded. They don’t want to be only Chinese. They are always ready to work really hard, the Chinese. They are never really relaxed about competition and are aggressive about facing it.

Gilles Dufour Adds Trendy Twist to Erdos

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I’m not doing commercial in a boring way, but things that can be worn…for a few years,

not only for six months.— GILLES DUFOUR

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A look from Erdos by Gilles Dufour.

Liu Wen is the face of the brand.

10

DE RIBES DUE AT THE MET: Beyond being an aristocrat, socialite, muse, fashion designer and longtime International Best Dressed List-er, Countess Jacqueline de Ribes will be the subject of a new exhibition at the Metropolitan Museum of Art’s Costume Institute next fall. The Parisian has been busy ironing out the details with the museum’s Harold Koda. A former muse to Valentino, Yves Saint Laurent and Guy Laroche, de Ribes has no shortage of designer labels, some of which will go on view from Nov. 3 through Jan. 31.

— ROSEMARY FEITELBERG

QUEEN’S HONORS: Queen Elizabeth II has handed down honors to a clutch of names in the arts and fashion worlds as part of her annual New Year honors list. Mary Quant, the famed Sixties designer, was named a Dame Commander of the Order of the British Empire, or DBE, for services to British fashion. That adds to Quant’s existing honor as Officer of the Order of the British Empire. And Caroline Rush, chief executive officer of the British Fashion Council, was named a Commander of the Order of the British Empire, or CBE, for services to the British fashion industry, while Jane Shepherdson, ceo of Whistles, was also named a CBE for services to U.K. retail business. Julie Deane, the co-owner and founder of the Cambridge Satchel Co., was named an OBE for services to entrepreneurship.

Dickson Poon, the owner of Harvey Nichols and already a CBE, has been given a knighthood for services to business and charity, particularly higher education,

which includes his donating 10 million pounds, or $15.5 million, to build the Dickson Poon University of Oxford China Centre Building at St. Hugh’s College at the University of Oxford.

In the arts world, Kristin Scott Thomas, already an OBE, was named a dame for services to drama, as was poet laureate Carol Ann Duffy, for services to poetry, while writer Ali Smith was named a CBE for services to literature, and actor James Corden was named an OBE for services to drama. Actress Joan Collins was named a dame for her charitable and philanthropic work, including her patronage of a number of children’s charities. Collins received her honor as part of the Foreign and Commonwealth Offi ce list of Britons living overseas. — NINA JONES

RUSSIA’S OUT: Russia will no longer be the guest national at the January edition of the Pitti Uomo trade show in Florence. Pitti Immagine said the change was confirmed by an official letter from the Russian Fashion Council,

which had been coordinating the project with Russia’s ministry of industry and commerce.

“Well-known currency issues — the collapse of the value of the ruble, which, over the last few days, has plummeted even further — and the economic crisis the country is experiencing” have compromised Russia’s ability to participate in Pitti events as planned, the trade-show organizer noted. Pitti and the Russian Fashion Council have agreed to reconsider a special collaboration in the future, when economic conditions improve. — CYNTHIA MARTENS

WWD WEDNESDAY, DECEMBER 31, 2014

SIMONS, THE 175-YEAR-OLD retailer from Quebec, will expand into five cities across the country over the next two years, bringing the total store count to 14.

“For us, this is aggressive,” said Peter Simons, the chief executive offi cer and fi fth-generation Simons to lead the chain. “We are a small, family-owned, private retailer. It’s a big move from a more local regional to a national operation.”

Canada is seeing a major infl ux of U.S. retailers, but Simons said his fi rm’s expansion is not a direct response to the new competition. “It’s more of a response to our strat-egy,” he told WWD. “Our goal is not to have a big company. To be able to execute on collaborations and design ideas, we needed to be a bit larger to work effectively with different de-sign and creative partners.”

For U.S. retailers entering Canada, like Saks Fifth Avenue and Nordstrom, he has a warning: “It’s not as easy as it looks. Canadians will make their choices. The prob-lems that Target has experienced

will make [newcomers] think twice.” For Target, it was a case of too much, too soon, opening 124 stores across Canada in 2013 and running into an array of problems, from empty shelves to a lack of acceptance by Canadians and major fi nancial losses.

In Canada, as in the U.S., “it’s a challenging, competitive environ-ment” for selling women’s apparel, Simons said. “It’s faster paced than it used to be. It’s a tough business.” He said it’s becoming more demand-ing because of the speed of change, international challenges, the need to know customers, the need to create value and keep it exciting. Simons also said that in Canada, “the promo-tional environment is evolving rap-idly and aligning with the U.S.”

Simons exceeds $300 million in an-nual volume. It isn’t like other depart-ment or specialty stores: It’s a hybrid, offering a range of “mid to high-end prices,” with private labels, national brands and designer brands, but no cos-metics. “Some people fi nd it surprising we don’t sell cosmetics,” Simons said. “But we are a large-scale fashion spe-cialty store with women’s, men’s and soft home goods for the bedroom, bathroom and kitchen. We have chosen to focus on that. It provides us with a business model customers appreciate. Our stores offer consumers a unique shopping ex-perience with our innovative fashion mix and our commitment to designing engaging environments that celebrate Canadian art and architecture.”

The company was founded by John Simons as a dry-goods store in Quebec. There are three loca-tions in Quebec, headquarters in Old Quebec, and one store each in Anjou, Edmonton, Montreal, Laval, Saint-Bruno and Sherbrooke.

Here, Simons discusses the com-pany’s upcoming expansion, priori-ties and competitive advantages.

— CONSTANCE DROGANES AND DAVID MOIN

WWD: With your strong presence in Quebec for 175 years and the suc-cessful launch of your fi rst outpost in Edmonton two years ago, why did you decide to embark on such an am-bitious expansion?Peter Simons: We felt it was time to manage a more geographically ex-pansive company. We had to grow to accommodate the relationships we have with our designers and suppli-ers. Even with our expansion plans, we will still be a smaller company compared to our competitors. But we had to have a larger footprint to ac-complish all that we want to in the future, particularly in terms of the innovation we hope to bring to retail.

WWD: As a private company, do you have an advantage in today’s retail market?P.S.: We hope to stay [private] for as long as possible. But Simons is also a

value-based company. That combina-tion has given us the ability to make unique choices about the suppliers and buyers that we want to work with — choices that public compa-nies simply cannot make.

WWD: American companies are clamoring for a piece of Canada’s retail pie, including Nordstrom and Saks Fifth Avenue. How will Simons compete with these power-house retailers?P.S.: First of all, we’re a homegrown brand. We’re part of the fabric in this country. I believe that means some-thing to Canadian consumers, par-ticularly at a time when many com-petitors are headquartered outside of this country. We also like to par-ticipate in our communities. We sup-port the arts and showcase the work of homegrown artists in our stores.

WWD: Discuss how you, much like an artistic patron, make the in-store ex-perience special for your customers.P.S.: We have spent a substantial amount of money on the art and architecture that is interwoven into the fabric of our stores. That is something we have always done. It’s all part of creating a unique physical experience for our cus-tomers. That kind of artistry and beauty is essential to us and to our retail philosophy. The store envi-ronment is critically important. But it’s more than that. Customers are smart. They are also very so-cially minded today and are drawn to companies that embrace that at-titude. These factors cannot be ig-nored. It’s how the customer will decide who they will and won’t sup-port in the retail world.

MIKE IS WATCHING YOU: In another sign that he’s firmly retaken the helm of his namesake media company, Michael Bloomberg this week quietly reinstated its practice of tracking employees’ whereabouts, WWD has learned.

The system allows everyone in the company to see when their coworkers arrived at work, giving the exact time they swiped their card upon entry. The arrival times are included in intercompany e-mails, according to an insider at Bloomberg, who called the practice a source of paranoia.

A spokeswoman from Bloomberg declined to comment.

Time-stamping had been done away with under former chief executive offi cer Dan Doctoroff, who headed the company while Bloomberg was otherwise engaged as mayor of New York. Doctoroff called the Big Brother-esque practice counterproductive via an e-mail to staff. For the most part, the decision was met with relief by employees.

But Bloomberg returned to the company that bears his name in September after his 12-year tenure as mayor, and he has been making big changes ever since. Doctoroff exited upon Bloomberg’s arrival, while, earlier this month, the most recent upheaval has been the appointment of John Micklethwait as editor in chief of Bloomberg News, beginning in January. The former editor in chief of The Economist was a surprise replacement for Bloomberg News founding editor Matthew Winkler, who no one thought would ever leave and now has become the organization’s editor in chief emeritus (whatever that title means).

Although his pedigree fi ts the Bloomberg model — Micklethwait worked at The Economist for 27 years in various reporting and editing roles before taking the editorship in 2006 — many staffers at the fi nancial data and media fi rm thought Laurie Hays eventually would be given the top spot since she serves as senior executive editor at Bloomberg News, where she supervises more than 1,100 reporters and oversees global coverage of markets, fi nance,

companies, government and economy. Hays joined Bloomberg in 2008, following a 23-year career at The Wall Street Journal, so perhaps the former mayor wanted to bring someone in with a different outlook (not to mention a different accent).

How Micklethwait will steer Bloomberg remains to be seen, but those who know the “intellectual” editor told WWD that he could shift the culture of the organization.

Tim de Lisle, editor of Intelligent Life, The Economist’s bimonthly culture and lifestyle magazine, described Micklethwait’s style as editor as “tactical and practical, with a sharp eye for the bigger picture,” noting that the editor swiftly adapted the title to the digital landscape and has “staunchly” upheld the church-state distinction, “one of the glories of The Economist.”

“He will have about 20 times as many editorial staff, so he will have to be hands-off. He will have more power and probably less infl uence: The Economist punches above its weight; Bloomberg, not so much. But that may be precisely why they’ve hired him,” de Lisle said.

George Brock, professor of journalism at City University London, said he believes Micklethwait’s appointment is part of Bloomberg’s plans to make the news service more “upmarket,” adding, “[The appointment] seems to me to give powerful support to the idea that Michael Bloomberg, now that he’s taken the reins [at Bloomberg] back, is looking to possibly expand what Bloomberg does…and take it upmarket a bit. It would be a very odd choice of editor in chief, unless that was in your mind.” Brock also pointed to ongoing rumors that Bloomberg is considering an acquisition of either The Financial Times or The New York Times as another factor behind Micklethwait’s appointment. “If [an acquisition] were to be in Bloomberg’s head, an editor in chief with that kind of clout would be the sort of person you might want to see in charge,” observed Brock.

Putting that aside, Micklethwait likely will have more immediate adjustments to tend to, including adapting to Bloomberg’s revived time-stamping system. Talk about watching the clock.

— ALEXANDRA STEIGRAD AND NINA JONES

Q&A

Peter Simons Talks Expansion

FOR MORE SCOOPS, SEE

WWD.com.

MEMO PAD

FASHION SCOOPS

A rendering of the future Simons store in Vancouver.

WWD.COM11WWD WEDNESDAY, DECEMBER 31, 2014

Store Design in Focus on RodeoBy MARCY MEDINA

BEVERLY HILLS — Rodeo Drive is revving up. The three-block-long thor-oughfare now boasts more new tenants and storefronts than ever, a visible indi-cation that luxury’s faith in the Golden State remains as strong as its love af-fair with Hollywood and its current fas-cination with Los Angeles.

Rent for 2,000-square-foot or larger retail spaces on Rodeo is at an all-time high, two or three times what it was a decade ago: the going rate is $600 to $700 a square foot per year (or $50 to $58 a month), quickly heading into $800-a-year, or $67 a month, territory.

When long-term leases, which are for 10 years or more, have been signed or renewed, it’s usually go-time for pricey renovations, such as Gucci’s, or splashy debuts such as Burberry, Saint Laurent, Tory Burch, Vera Wang and Dsquared2, all in the past 12 months. Louis Vuitton is undergoing a massive facelift and expansion.

Such projects can start at $10 mil-lion and go up to $20 million, when both interiors and exteriors are involved. Marquee architects and designers add to the prestige and price tag: Paris-based fi rm Rena Dumas Architecture Interieure did Hermès; Peter Marino designed the interiors of Chanel, Fendi, Christian Dior and Ermenegildo Zegna; Sawyer|Berson designed Vera Wang inside and out; Rem Koolhaas, Prada; William Sofi eld, Tom Ford, and so on.

Today’s store design trends seem to fall into four stylistic camps: black, white, mineral or metal. Rents and renovation prices aren’t the only things blowing up. Real estate, both retail and residential, is

on fi re in the 90210 zip code. Within the past two years, two buildings have sold for more than $100 million each (one houses Chanel, the other houses Gucci).

Interestingly, several of the buyers have been fashion houses themselves: Chanel purchased its building at 400 North Rodeo and the adjoining space next door, formerly occupied by Lladro (could a Chanel expansion be in the off-ing?). In 2011, Hermès bought its building at 434 North Rodeo; in 2000, Richemont bought the Cartier building at the cor-ner of Rodeo Drive and Brighton Way (its watch brands IWC, Jaeger LeCoultre and Panerai occupy storefronts on the side facing Brighton); a year and a half ago, LVMH Moët Hennessy Louis Vuitton scooped up the 5,700-square-foot build-ing that houses Céline at 319 North Rodeo and Piaget at 323 North Rodeo (making Piaget owner Richemont a ten-ant to LVMH). Jay Luchs, execu-tive vice president of real estate firm Newmark Grubb Knight Frank, brokered the latter deal for $85 million.

“In 2004, I sold two build-ings, same size lot [as the Céline and Piaget building] with 50 feet of front-age, for $20 million. Today, they are [valued at] $100 million,” Luchs said.

If sales ever flag, fashion houses could recoup their money and then some in real estate profi ts. But Luchs doesn’t see a slowdown. “Right now, Rodeo Drive is as strong as ever. It’s get-ting to the point where there’s nothing left,” he said. “Rodeo is sitting in the middle of a city with recorded sales of $5 billion a year. Brands know if they don’t get it now, they are never going to get it, so they’re making the decision to take what they can, while they can.”

FOR MORE ON TRENDS, SEE

WWD.com/retail-news.

WHITE OUT SHINE ON

BLACK MAGIC

ROCK SOLID

PHOT

OS B

Y AM

Y GR

AVES

Renovated storefronts and new tenants fi ll Rodeo Drive. Here, Tom Ford, Tory Burch,

Valentino and Céline.

For more career opportunities log on to WWDCareers.com.

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WWD.COM12 WWD WEDNESDAY, DECEMBER 31, 2014

By ARNOLD J. KARR

U.S. RETAILERS ENDURED a bumpier road than expected in 2014, but chal-lenges in the stores hardly kept Wall Street’s bulls at bay.

That’s primarily because falling unemployment (down to 5.8 percent in November), rising gross domestic product (up to an annualized rate of 5 percent in the third quarter) and the Federal Reserve’s policy of low interest rates kept investors turning to a variety of equities — retailers’ included — and, with only rare exceptions, reaping re-wards for doing so.

Still, retail traffi c disappointed stores during the second half of the year, when most expected a marked upswing based on an improving U.S. economy, and the ripple effect hit stores’ suppliers, many of

which observed the absence of customers from stores of their own. Lower gas prices late in the year were an unexpected gift to consumers and helped blunt the effect of a highly promotional retail market.

The challenges at retail might have limited the ability of securities to ap-preciate, but they hardly prevented it. With an average of a record high close per week throughout the year, the Dow Jones Industrial Average rose 8.5 per-cent to 17,983.07 as of Tuesday , below the double-digit gain of the S&P 500, which rose 12.6 percent to 2,080.35, and the slightly less robust gain of the S&P’s retailing subset, the S&P 500 Retailing Industry Group, which was up 9.8 per-cent to 1,031.98.

The WWD Global Stock Tracker, inau-gurated in July but loaded with data from late 2013, outpaced the Dow slightly, ris-ing 9 percent to 108.29.

European markets had a so-so year as nations came back from the sover-

eign debt crisis of 2013 and played a game of tug-of-war between stimulus and austerity, with signs that the con-tinent’s challenges, as recently seen in Greece, are far from resolved. London’s FTSE 100 was down 3 percent and Paris’ CAC 400 off 1.2 percent, while Europe’s largest economy, Germany, saw the DAX in Frankfurt rise 2.7 per-cent and Milan’s FTSE MIB increase 0.2 percent.

Even with a correction late in the year, Shanghai’s SSE Composite notched a nearly 50 percent gain, and despite friction with the government in Beijing, Hong Kong’s Hang Seng Index was up 0.8 percent. And recent actions by Japan to ease the tax burden on its companies and consumers helped the Nikkei 225 end the year with a 7.1 percent increase.

Among U.S. equities, hot categories translated into stock gains. The strength of performance apparel and the ath-leisure category helped Under Armour Inc. to the fourth best performance for the year among tracker stocks as shares rose 57.2 percent, and Hanesbrands Inc.,

active on the acquisition front, had the third best performance, with shares up 61.6 percent. Improved performance late in the year helped Denmark’s Pandora A/S top the tracker pack for 2014 as shares rose 71.6 percent, and Perry Ellis International Inc.’s 65.7 percent increase can be attributed to its determination to exit stagnant businesses, along with speculation about the possibility of a sale. G-III Apparel Group Ltd., growing organically as well as through the acqui-sition of other businesses and licenses, landed among the top gainers for the sec-ond year in a row.

One of the strongest performances in U.S. retail came from L Brands Inc., as its focus on intimate apparel insu-lated it from some of the pressures fac-ing non-intimate apparel and sent its stock up 40.9 percent. Other standout retailers included Nordstrom Inc., le-veraging its combinations of full- and off-price and off-line and online to a 27.3 percent increase; Dillard’s Inc., up 28.6 percent, and off-pricer Ross Stores Inc., up 26.3 percent.

By VICKI M. YOUNG

THE STOCK story heading into 2015 re-mains very much on the IPO theme that dominated 2014, as the initial public of-fering cycle is still a strong one — but like 2014, there’s a chance fashion com-panies could be left out in the cold again.

To be sure, boosting the rise in tech-nology firms heading to the equity markets was Alibaba’s $25 billion IPO in September on the New York Stock Exchange. There also were a high num-ber of Chinese e-commerce fi rms head-ing to the U.S. to list, almost equally split between the NYSE and Nasdaq. Globally, many other IPOs fi t the tech theme, as well, such as those in Europe by German online retailer Zalando and British fast-fashion e-tailer Boohoo.com, which are considered technology firms first and fashion Internet retailers second.

Of the year ahead, Maria Watts, managing director at Baird Global Investment Banking, said, “I don’t see much activity in the fi rst quarter for ap-parel and footwear. I see [the potential for] some things later in the year. There was a dearth of apparel brands going public this year, but some brands are get-ting to be of a certain scale, and they are starting to see growth hitting on all cylin-ders. As they weigh [their options for] a sale and an IPO, the IPO might be more attractive in terms of valuation.”

On the fashion front, the two that fl oat-ed this year were Jimmy Choo, which raised $227 million, and Boot Barn, which raised $80 million. There could be a simi-lar dearth of fashion IPOs in 2015, as well. While there has been speculation that J. Crew is toying with the idea of going pub-

lic, there’s no guarantee, and its recent weak results might infl uence the timing. Another fashion-related fi rm that might go public in 2015 is Net-a-Porter, although the company, a division of Compagnie Financière Richemont, would be consid-ered a technology IPO. According to IPO investment advisory firm Renaissance Capital, Richemont is expected to fl oat the British e-tailer on the main London Stock Exchange and could raise $200 million when it does so.

There is the question of how long the IPO window will stay open and what equity markets will be like midyear. Technology shares saw volatility this year — as did the entire market — and at one point during the August-September pe-

riod, there was concern over whether the IPO window might close.

That’s not a concern going into 2015, at least not for the fi rst quarter, given U.S. stock markets’ recent buoy-ancy. If anything, the markets bode well for a third straight year in a posi-tive IPO cycle, according to data from Renaissance Capital.

Observers thought 2013 was a wa-tershed year in the IPO cycle, since an-nual global IPO proceeds hit a record $137 billion. North America was then the “largest contributor in IPO issu-ance,” Renaissance Capital said, noting that activity in the U.S. raised $51.7 bil-lion. Then came 2014, which set an even higher record as global annual proceeds reached $204.8 billion. With 273 complet-ed IPOs that raised $84.9 billion, data from Renaissance Capital shows that the “U.S. IPO market set a 14-year record against a mostly low-volatility backdrop.”

The IPO investment advisory fi rm said the global IPO pipeline has doubled from last year’s levels, with fi nancial and tech-nology companies leading the charge. It concluded that a “healthy pipeline and still-positive U.S. economic backdrop should support another year with more than 200 IPOs.”

In addition to Net-a-Porter, upcoming tech-related fi rms that have fi led for IPOs include Web-based cloud-storage pro-vider Box and Web advertising platform Outbrain. On the consumer side, burger

chain Shake Shack fi led fl otation plans on Monday, while party-supply retailer Party City indicated its plans earlier this year. Others that are in discussions for possible IPOs — although with no guaranteed tim-ing — include global local networks for accommodations platform Airbnb, Web-based cloud-storage provider Dropbox, visual discovery tool Pinterest, photo-mes-saging app Snapchat, subscription-based music-streaming service Spotify and on-demand transportation app Uber.

For the firms that completed their IPOs this year, a handful are trading above their opening prices.

Alibaba Group Holdings Ltd. is ending the year in the trading range of $105.79, above its opening price of $92.70. JD.com, Chinese e-commerce fi rm and Alibaba’s chief competitor, is in the trading range of $23.29, above its $21.75 opening price. Cnova N.V., the e-tail operation of French retail giant Casino, is trading around $8.19, above its opening price of $7.63. Jimmy Choo’s trading range is $2.67, above its $2.18 fl otation price. German online retailer Zalando is trading around $31.07, also above its opening price of $26.18. Currency conversions to the U.S. dollar are at current exchange.

The other IPOs haven’t fared as well. Weibo Corp., the Chinese microblogging site, is around $14.30, below its opening price of $16.27. Beijing-based e-commerce cosmetics fi rm Jumei.com is in the $13.76 range, below its opening price of $27.25.

Fashion Shares March Higher

Tech IPO Theme Could Replay in 2015

dominated 2014, as the initial public of-fering cycle is still a strong one — but like 2014, there’s a chance fashion com-panies could be left out in the cold again.

To be sure, boosting the rise in tech-nology firms heading to the equity markets was Alibaba’s $25 billion IPO in September on the New York Stock Exchange. There also were a high num-ber of Chinese e-commerce fi rms head-ing to the U.S. to list, almost equally split between the NYSE and Nasdaq. Globally, many other IPOs fi t the tech theme, as well, such as those in Europe by German online retailer Zalando and British fast-

While there has been speculation that J. Crew is toying with the idea of going pub-

lic, there’s no guarantee, and its recent weak results might infl uence the timing.

ancy. If anything, the markets bode well for a third straight year in a posi-tive IPO cycle, according to data from Renaissance Capital.

tershed year in the IPO cycle, since an-nual global IPO proceeds hit a record $137 billion. North America was then the “largest contributor in IPO issu-ance,” Renaissance Capital said, noting that activity in the U.S. raised $51.7 bil-lion. Then came 2014, which set an even higher record as global annual proceeds reached $204.8 billion. With 273 complet-ed IPOs that raised $84.9 billion, data

$25BAMOUNT RAISED IN ALIBABA’S

RECORD-BREAKING IPO.

LEADERS 2014 Close Change

Pandora A/S (Danish kroner) 504.50 71.6%

Perry Ellis International Inc. 26.09 65.7%

Hanesbrands Inc. 112.47 61.6%

Under Armour Inc. 68.33 57.2%

Youngor Group Co. (yuan) 11.17 50.7%

Matsuya Co. (yen) 1,609 43.3%

Anta Sports Products Ltd.(Hong Kong dollars) 13.60 42.3%

L Brands Inc. 86.10 40.9%

Revlon Inc. 34.46 40.3%

G-III Apparel Group Ltd. 101.26 36.5%

Coty Inc. 20.84 35.2%

LAGGERS 2014 Close Change

Quiksilver Inc. 2.30 -73.7%

The Bon-Ton Stores Inc. 7.36 -55.8%

Giordano International Ltd. (Hong Kong dollars) 3.40 -50.9%

Luen Thai Holdings Ltd. (Hong Kong dollars) 1.37 -49.3%

Myer Holdings Ltd. (Australian dollars) 1.42 -48.7%

Trinity Ltd. (Hong Kong dollars) 1.44 -44.8%

Avon Products Inc. 9.49 -44.7%

Yoox.com (euros) 18.37 -43.8%

Ascena Retail Group Inc. 12.61 -41.2%

Li Ning Co. (Hong Kong dollars) 3.56 -41.1%

Elizabeth Arden Inc. 20.88 -41.0%

INDICES 2014 Close Change

WWD Global Stack Tracker 108.29 9%

Dow Jones Industrial Average 17,983.07 8.5%

S&P 500 2,080.35 12.6%

S&P 500 Retailing Industry Group 1,031.98 9.8%

FTSE 100 (London) 6,547.00 -3%

CAC 40 (Paris) 4,245.54 -1.2%

DAX (Frankfurt) 9,805.55 2.7%

FTSE MIB (Milan) 19,011.96 0.2%

Nikkei 225 (Tokyo) 17,450.77 7.1%

SSE Composite (Shanghai) 3,165.81 49.6%

Hang Seng Index (Hong Kong) 23,501.10 0.8%

SOURCE: WWD GLOBAL STOCK TRACKER, YAHOO FINANCE

Tech IPO Theme for 2014, Maybe 2015

2014: THE YEAR IN STOCKS