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Fashion. Beauty. Business.
AUG
2015
No.1
FLOU
SEASON
The caftan is making a
comeback, with styles
from simple to ornate.
Fashion p. 8
SILVER
STREAK
Ulta, one of beauty’s
hottest retailers,
marks 25 years.
In Focus p. 31
BEAUTY AND
THE BAG
Christian Louboutin
launches lipsticks and
expands handbags.
Features p. 78
REDHotandATOMICGEN Z — WHICH IS SIZABLE,
SOCIAL AND READY TO SPEND
— IS BLOWING UP (AND SO
ARE THE SMITH SIBLINGS).
REDHOTANDATOMIC“Ijustfavorhappinesstodarkness.I’mmoresolarthanlunar.”CHRISTIANLOUBOUTIN
Photograph by EMMAN MONTALVAN
Lucky Blue Smith, one of the four
Smith siblings who are models as
well as bandmates in The Atomics.
Ready or
Not, Here
They Come!
72 At nearly 25 percent
of the population,
Generation Z is sizable,
social and has
considerable spending
power. Just don’t mistake
them for Millennials.
Eyes Wide Open
78 Christian Louboutin
discusses his new luxe
lipstick line and an
expanded handbag
offering as he keeps
adding to his
formidable
footwear.
The Features
Edward Nardoza
EDITOR IN CHIEF
Pete Born
EXECUTIVE EDITOR, BEAUTY
Bridget Foley
EXECUTIVE EDITOR
James Fallon
EDITOR
Robb Rice
GROUP DESIGN DIRECTOR
John B. Fairchild
1927 — 2015
MANAGING EDITOR Peter Sadera
MANAGING EDITOR, Dianne M. Pogoda
FASHION/SPECIAL REPORTS
EUROPEAN EDITOR Miles Socha
DEPUTY MANAGING EDITOR Evan Clark
NEWS DIRECTOR Lisa Lockwood
DEPUTY EDITOR, DATA AND ANALYSIS Arthur Zaczkiewicz
DEPUTY FASHION EDITOR Donna Heiderstadt
SITTINGS DIRECTOR Alex Badia
SENIOR EDITOR, RETAIL David Moin
SENIOR EDITOR, SPECIAL PROJECTS, Arthur Friedman
TEXTILES & TRADE
SENIOR EDITORS, FINANCIAL Arnold J. Karr, Vicki M. Young
ASSOCIATE EDITOR Lorna Koski
BUREAU CHIEF, LONDON Samantha Conti
BUREAU CHIEF, MILAN Luisa Zargani
BUREAU CHIEF, LOS ANGELES Marcy Medina
ASIAN EDITOR Amanda Kaiser
BUREAU CHIEF, WASHINGTON Kristi Ellis
SENIOR FASHION EDITOR Bobbi Queen
ASSOCIATE EDITOR Jenny B. Fine
SENIOR EDITOR, SPECIALTY RETAIL Sharon Edelson
SENIOR PRESTIGE MARKET Julie Naughton
BEAUTY EDITOR
SENIOR FASHION FEATURES EDITOR Jessica Iredale
SENIOR ACCESSORIES EDITOR Roxanne Robinson
SENIOR MARKET EDITOR Mayte Allende
EYE EDITORS Taylor Harris, Erik Maza
MEN’S
SENIOR EDITOR Jean E. Palmieri
FASHION DIRECTOR Alex Badia
ASSOCIATE FASHION EDITOR Luis Campuzano
MEN’S REPORTER Aria Hughes
MARKET EDITORS
FINANCIAL NEWS AND ANALYSIS Debra Borchardt
ACCESSORIES Lauren McCarthy,
Misty White Sidell
BEAUTY Molly Prior, Jayme Cyk
DIGITAL Rachel Strugatz
READY-TO-WEAR, Bobbi Queen
FURS & INNERWEAR FASHION
READY-TO-WEAR & SPORTSWEAR NEWS Rosemary Feitelberg
MEDIA Alexandra Steigrad
READY-TO-WEAR AND Kristi Garced
SPORTSWEAR FASHION
EYE Ally Betker, Leigh Nordstrom
CORRESPONDENTS
LONDON Nina Jones
LONDON, EDITORIAL COORDINATOR Lorelei Marfil
LOS ANGELES Khanh T.L. Tran
LOS ANGELES Kari Hamanaka
MILAN, FASHION AND NEWS Alessandra Turra
NEW YORK, EDITORIAL ASSISTANTS William Cotto,
Tara Bonet-Black,
Kelsi Zimmerman
NEW YORK, FASHION ASSISTANTS Andrew Shang, Ashley Davis,
Kayana Cordwell, Milton Dixon,
Emily Mercer
PARIS, EUROPEAN BEAUTY EDITOR Jennifer Weil
PARIS, SENIOR FASHION EDITOR Laurent Folcher
PARIS, SENIOR BUSINESS NEWS EDITOR Joelle Diderich
PARIS, GENERAL ASSIGNMENT Paulina Szmydke
REPORTER, NEWS
PARIS, EDITORIAL AND WEB ASSISTANT Anne-Aymone Gheerbrant
WEB EDITOR, EUROPE Laure Guilbault
SAN FRANCISCO, TECHNOLOGY Maghan McDowell
DESIGN DEPARTMENT
CREATIVE DIRECTOR Nick Mrozowski
ART DIRECTOR Geraldson Chua
SENIOR DESIGNER Christa Guerra
DESIGNER Robyn Boehler
DESIGNER Jewelyn Butron
PHOTOGRAPHY
PHOTO DIRECTOR Ash Barhamand
ASSOCIATE PHOTO EDITOR Jenna Greene
BOOKINGS AND PRODUCTION EDITOR Tricia VanGessel
ASSISTANT PHOTO EDITOR Katrina Brown
PHOTO STUDIO
PHOTO STUDIO MANAGER Eileen Tsuji
PHOTO STUDIO ASSISTANT Emily Taylor
PHOTOGRAPHERS George Chinsee, Steve Eichner,
Thomas Iannaccone
COPYDESK
COPY CHIEF Maureen Morrison-Shulas
COPY EDITORS Danielle Gilliard, David Podgurski,
Maxine Wally
PREPRESS PRODUCTION
DIGITAL IMAGING Alex Sharfman
PREPRESS ASSEMBLY David Lee Chin
WWD.COM
SITE DIRECTOR Michelle Preli
ASSISTANT ONLINE EDITOR Kristen Tauer
WEB PRODUCER Robert Tutton
PUBLIC RELATIONS
PR COORDINATOR Christina Mastroianni
Contents
6 Social Studies
The best and worst in social media, what’s
trending, whom to follow.
24 Eye
• Parties The fourth-annual Hamptons Paddle &
Party for Pink.
• Arts & Culture Phillipa Soo soars as the first lady
in “Hamilton.”
• Report Card Kate Mara looks appropriately
fantastic at a premiere of “Fantastic Four.”
• City File Tuning In to Nashville.
31 WWD Milestones
Silver Streak As it hits the 25-year mark, the red-
hot Ulta Beauty reveals strategies for continued
growth in its next quarter-century.
84 Bridget Foley’s Diary
With the departure of Alexander Wang from
Balenciaga, the “Who’s next?” watch begins anew.
86 Think Tank
Marcie Merriman, executive director of business
strategy and retail innovation at Ernst & Young,
discusses how to win the hearts and minds of
Generation Z.
88 Remember
Singapore celebrates 50 years of independence
with a string of events in New York . . . The Ritz
reopens in Paris . . . Human Resources
90 Finale
Letter Man: The alphabet soup that is the
generation game surely didn’t start with Gen Z.
Matt Dillon was one of the poster boys for Gen X.
4 AUGUST 2015, No. 1 WWD.COM
Cotton jeans by Frame Denim.
22
Jean Splicing: Five brands that are
injecting newness into the men’s
denim market . . . M Briefs
Retail 20
Jeffrey Kalinsky, whose Jeffrey
flagship helped transform
Manhattan’s Meatpacking District,
marks its 25th anniversary
. . . Retail Briefs
Markets 18
True North: Michelle Lam is
making data sexy, one bra at a
time . . . Markets Briefs
DEPARTMENTS
“We started the women’s line because we felt like
denim was no longer a fashion item, but for men it’s
more about the concept of style rather than fashion.”
— Jens Grede, Frame Denim
Men’s Agenda, page 22
ON THE COVER: The Smiths, clockwise from top left: Starlie
Cheyenne, Daisy Clementine, Pyper America, Lucky Blue.
PHOTOGRAPHED BY EMMAN MONTALVAN
Agenda
Fashion 8
Flou Season: Caftans are as
effortless as ever . . . Carolyn
Murphy signs with Ugg . . . Model
Call: Kenya Kinski-Jones . . .
Fashion Briefs
Paul Jowdy
SENIOR VICE PRESIDENT, GROUP PUBLISHER
ADVERTISING
ASSOCIATE PUBLISHER Pamela Firestone
INTERNATIONAL FASHION DIRECTOR, Renee Moskowitz
RMM MEDIA
EXECUTIVE DIRECTOR, MEN’S Brett Mitchell
BEAUTY DIRECTOR Carly Gresh
AMERICAN FASHION & LUXURY DIRECTOR Jennifer Petersen
ACCOUNT EXECUTIVES Samantha Hartje
Shannon Fitzgerald
Alexandra Smith
SENIOR CLIENT SERVICES MANAGER Joanna Block
CLIENT SERVICES MANAGERS Annie Belfield
Suzette Minetti
Tina Schissel
REGIONAL OFFICES/
INTERNATIONAL OFFICES
WEST COAST DIRECTOR Jill Biren
+1-323-965-7283
EUROPEAN ACCOUNT DIRECTOR, ITALY Giulia Squeri
+39-02-722-33602
ACCOUNT DIRECTOR, ITALY Olga Kouznetsova
+39-02-722-33603
SENIOR SALES COORDINATOR, ITALY Emanuela Altimani
EUROPEAN DIRECTOR, FRANCE Valérie Deschamps-Wright
+33-1-44-51-07-611
EUROPEAN SALES REPRESENTATIVE Marjorie Thomas
+33-240-31-6541
ADVERTISING ASSISTANT, FRANCE Pascale Rajac
DIGITAL/MARKETING/CREATIVE SERVICES
MARKETING DIRECTOR Shannon Nobles
CREATIVE DIRECTOR, MARKETING Cass Spencer
DIGITAL MEDIA STRATEGIST Cassie Leventhal
DIGITAL SALES PLANNER Amy Keiser
AUDIENCE MARKETING
VP & SENIOR EXECUTIVE DIRECTOR Ellen Dealy
CONSUMER MARKETING DIRECTOR Peggy Pyle
SENIOR DIRECTOR, DIGITAL MARKETING Janet Menaker
& STRATEGIC DEVELOPMENT
PLANNING & OPERATIONS DIRECTOR John Cross
SENIOR DIRECTOR, Randi Segal
INSTITUTIONAL SALES
SENIOR ONLINE MANAGER Suzanne Berardi
SENIOR MARKETING MANAGER Tamra Febesh
ASSOCIATE MARKETING MANAGER Lauren Busch
PRODUCTION
PRODUCTION DIRECTOR Kevin Hurley
PRODUCTION MANAGER Providence Rao
SUMMITS & EVENTS
VICE PRESIDENT, NEW VENTURES & GM Amber Mundinger
EXECUTIVE EDITORIAL DIRECTOR Mary Ann Bacher
DIRECTOR, ATTENDEE SALES Kim Mancuso
SPONSORSHIP DIRECTOR Alexis Coyle
DIRECTOR OF EXPERIENTIAL MARKETING Amelia Ewert
FAIRCHILD PUBLISHING LLC
Stephanie George
PRESIDENT AND VICE CHAIRMAN
EDITORIAL DIRECTOR OF Michael Atmore
FOOTWEAR NEWS & DIRECTOR
OF BRAND DEVELOPMENT
FINANCE DIRECTOR Devon Beemer
DIRECTOR OF EUROPEAN OPERATIONS Ron Wilson
WWD AND FAIRCHILD PUBLISHING LLC
ARE DIVISIONS OF PENSKE MEDIA CORPORATION
Jay Penske
CHAIRMAN & CEO
VICE CHAIRMAN Gerry Byrne
EXECUTIVE VICE PRESIDENT, George Grobar
STRATEGY AND OPERATIONS
EXECUTIVE VICE PRESIDENT, Paul Woolnough
BUSINESS AFFAIRS
SENIOR VICE PRESIDENT, Craig Perreault
BUSINESS DEVELOPMENT
GENERAL COUNSEL & Todd Greene
SVP HUMAN RESOURCES
VICE PRESIDENT, CREATIVE Nelson Anderson
VICE PRESIDENT, FINANCE Ken Delacazar
VICE PRESIDENT, HUMAN RESOURCES Tarik West
VICE PRESIDENT, ENGINEERING Gabriel Koen
DIRECTOR OF COMMUNICATIONS Lauren Gullion
DIRECTOR OF OPERATIONS Joni Antonacci
CONTROLLER Young Ko
SENIOR PROGRAM MANAGERS Christina Yeoh,
Derek Ramsey
DIRECTOR, ADVERTISING OPERATIONS Eddie Ko
DIRECTOR OF IT OPERATIONS Rick Gascon,
& PRODUCTION Matt Williamson
SENIOR IT ANALYSTS Carl Foner
Aramis Miranda-Reyes
IT ANALYSTS Don Gerber
Fred Baez
TO CONTACT WWD
EDITORIAL +1-212-256-8130
ADVERTISING +1-212-256-8102
CIRCULATION +1-515-237-3650
philosophy: our best is yet to come.
happy 25th
join the conversation at facebook.com/philosophy
1%
of all philosophy USA net product
sales supports community-based
mental health efforts.
here’s to an even more miraculous future together.
THE WEEK IN SOCIAL MEDIA
Follow Us @WWD
EDITED BY KRISTEN TAUER
6 AUGUST 2015, No. 1 WWD.COM
CELEBRITY STYLE
@salmahayek
Actress, producer and
beauty entrepreneur
@petercopping
Creative director of
Oscar de la Renta
FASHION FOCUSED
Best Worst
@alexanderwangny
Fashion designer
@parishilton
Socialite
“On set with Michael & fam. Miss him #TBT”
@millybymichelle
Fashion label
Michelle Smith and her squad experienced
an iconic New York moment — a walk over
the Brooklyn Bridge.
@bergdorfs
Retailer
“Sums up this steamy week, no?”
Yes, but does anyone need a reminder?
@ali_michael
Model
Glitter removal is an ugly task.
Alexander Wang bade adieu to his Balenciaga role with class,
down to the name strike-through on his stationery.
@givenchyofficial
Fashion label
Let’s Follow
“Happy birthday Riccardo Tisci! @riccardotisci17 in @interviewmag
by #StevenKlein #Love #birthday #Celebration”
Maybe next year Givenchy can gift Tisci a more flattering
portrait for its social media post.
Social Studies
@1JessicaHart
Literally have tears in my lap after
reading the horrible details of this story.
#CecilTheLion
@SophiaBush
Let’s use a terrible tragedy to make some
good happen, shall we? We can change
things #ScreamForCecil #CecilTheLion
@TheMandyMoore
This is heartbreaking in every possible way.
What a loss. Trophy hunting is SHAMEFUL
and disgusting. #CecilTheLion
@MiaFarrow
Animals are not trophies. Ever.
#CecilTheLion
The social media world rallied around the topic of
illegal hunting after the death of #CecilTheLion in
Zimbabwe.
Trending
DESIGN & DOODLES
@josecabaco
Brand creative director
at Eddie Bauer
CoppingphotographbyDrewAltizer;HayekbyAmyGraves
L o ve
H A P P Y
Birthday
©2015 Maybelline LLC.
C
FashionAgenda
EDITED BY DONNA HEIDERSTADT
8 AUGUST 2015, No. 1 WWD.COM
Resort’s most effortless
look, the caftan came
in versions that draped,
flared and billowed for
day or night.
Season
Flou
Photographs by FELIX WONG Styled by BOBBI QUEEN WWD.COM AUGUST 2015, No. 1 9
Adam Lippes’ silk
georgette caftan.
Necklace by
WWake.
OPPOSITE:
Clockwise from top
left: Camilla and
Marc’s tiered silk
wool dress with a
necklace by WWake
and shoes by
Roberto Cavalli;
Naeem Khan’s bead
and sequin-
embroidered nylon
tulle caftan; Josie
Natori Couture’s
viscose and silk
caftan with sandals
by Theory and
necklace by Pluma;
and Rodebjer’s
cotton and metallic
yarn-dyed woven
poncho.
FashionAgenda
10 AUGUST 2015, No. 1 WWD.COM
Halston Heritage’s
polyester chiffon
caftan. Necklace
by Pluma.
F L O U S E A S O N
HAPPY 25TH
, ULTA!
DON’T DO ANYTHING WE WOULDN’T DO.
FashionAgenda
12 AUGUST 2015, No. 1 WWD.COM
Model: PAULINE H/THE SOCIETY
Hair and Makeup by MIGUEL @ ARTIST
NYC USING BOBBI BROWN COSMETICS
Photo Assistant: HEATH LATTER
Fashion Assistant: EMILY MERCER
The Row’s silk
poplin shirt and
dress; WWake’s
necklace.
F L O U S E A S O N
Congratulations
25 years of success!
We are proud to be your partner
and look forward to celebrating the next 25 years.
FashionAgenda
Ignis et vidunti blabor as et
esenimentio odiae
voluptatur sundebis dolum
14 AUGUST 2015, No. 1 WWD.COM Photograph by JENNA GREENE
Carolyn Murphy talks about Ugg’s new limited-
edition collection, and the woes of Instagram.
By LAUREN MCCARTHY
refined style. “The great thing about this collection
is that it will appeal to a huge age range, no matter
what their lifestyle.” Case in point: her 14-year-old
daughter Dylan has already borrowed the pair that
Murphy took from the set.
She described the campaign shoot as “com-
fortable” — a trait evident by the images, which
depict the model lounging barefaced in oversize
sweaters and cozy jackets. Coincidentally, her
other high-profile gig for fall — the Oscar de la
Renta ready-to-wear campaign — also called for
the au naturel look. “Maybe that’s what happens
when you are fortysomething — they say you don’t
need makeup,” she said.
Though she was discovered at the age of 15,
Murphy is hesitant to let her daughter enter the
modeling realm just yet. “She’s been approached
a lot lately,” she said. “I told a magazine recently
that I just don’t think she’s there, maturity-wise,
so maybe come back to us in a few years.
“My daughter is 14, and Kate [Moss] started
when she was 14, and then Amber [Valletta] and
Shalom [Harlow]. My parents were stricter — I had
to wait until I finished high school, and then I had to
attempt college, which I did for a year. On a personal
note, I would stave it off as long as I could for Dylan.
That being said, if [Steven] Meisel called tomorrow
and said he wanted to do a portrait of her, I don’t
think I would say no, because I’m very close with
him, and there’s a certain level of trust there.”
Murphy notes an added pressure for younger
models these days, particularly in the age of Twit-
ter and Instagram. “I get in trouble for not being
that active [on social media],” she admitted. “I do
not have a lot of followers.”
The model has 122,000 followers on Instagram
— not too shabby, but a far cry from the count of
models du jour such as Karlie Kloss (2.9 million),
Joan Smalls (1 million) or the reigning queen, Ken-
dall Jenner (33 million), the latter two who also
happen to share Murphy’s title as an Estée Lauder
spokesmodel. “I find it painstaking at times to
self-promote,” Murphy said. “It’s so different from
the Nineties when it was very much about art and
fashion and music and there was a real passion.
Now it’s quite corporate, which is fine because at
the end of the day we’re all creating and selling
products — that’s our job. The self-promotion is
what I have a problem with.”
So no selfies? “I get embarrassed,” she said. “If
I post one selfie a week, I’m doing good, because
with brands, that’s one of the first things they ask.
They want to know how many followers you have.
I hear this a lot from the younger models, because
it’s really all they know. For those of us who are a
little bit older, we have to figure it out.”
To her defense, Murphy has other things to
worry about beyond finding the perfect iPhone
lighting, including her position as women’s design
director for Detroit-based leather goods and
watch manufacturer Shinola. “My role at Shinola
is something I would have never thought could
happen,” she said. “Maybe I would have dreamt
of having an actual job and a desk and a salary,
which it has evolved into and is wonderful. Having
a job where I actually have to think and sit on the
creative side of things and have an opinion is really
important.” ■
U
gg is getting a new look — and a
familiar face to go with it.
For the first time in 37 years,
the company is introducing a
fresh take on its classic boot
with a limited-edition collec-
tion, dubbed “Classic Luxe,”
and Carolyn Murphy as its face.
Herself a California native, where the Deckers
Brands-owned company was founded in 1978,
Murphy is no stranger to its products. “I grew
up with the brand, having lived in California for
10 years and surfing there, so we were given Ugg
boots quite young,” she said. “My first pair was
from my uncle when I was maybe eight, and they
were the classic sandy-colored boots. My cousin
and I both got a pair of my grandfather’s when he
passed, which I know is a bit weird.”
The new collection is a far cry from those old
styles, though. The Italian-made boots feature a
sleeker silhouette with a slimmer, more-contoured
construction than the classic iteration. Materials
include goat suede and Merino Twinface, with
a leather, logo-embossed heel and the signature
sheepskin insole. The collection comes in two
styles: the Abree, a sister to the traditional boot
with a new zipper closure for a snugger fit, and
the Karisa, an ankle boot done with tasseled fringe
detailing. The Abree, which comes in tall and
short heights and will retail for $295 and $250,
respectively, comes in colors that include espresso,
aubergine and rust, while the Karisa comes in tan
and black and retails for $245. The collection will
hit select North American Ugg stores, and the
brand’s Web site, beginning on Aug. 6.
Murphy praised the new collection’s more
“Maybe that’s what
happens when you are
fortysomething — they say
you don’t need makeup.”
Carolyn Murphy
Murphy’s Ugg
Romance
sourcing at magic opens august 16
register now at attendmagic.comLas Vegas & Mandalay Bay Convention Centers
Findithere.AUGUST 17–19, 2015
Women’s.
Footwear.
Young
Men’s.Men’s.
FashionAgenda
Photograph by MATT TAMMARO16 AUGUST 2015, No. 1 WWD.COM
“Obviously, to me, they’re just my
parents,” said Kenya Kinski-Jones
on a recent afternoon, having
touched down in Brooklyn after
spending a weekend in upstate
New York with her boyfriend, actor
Will Peltz. The 22-year-old Los
Angeles-based model and animal
activist — who graduated in May
from Loyola Marymount University,
where she majored in English —
was talking about her father, music
producer Quincy Jones, and her
mother, actress and former model,
Nastassja Kinski. “I grew up not at
all in the spotlight. I think my parents really
kept things down-to-earth for me.” In addition
to landing editorials in Vogue Spain, Teen
Vogue and Harper’s Bazaar, Kinski-Jones is
also one of the faces of the buzzy new Calvin
Klein Jeans campaign. — KRISTI GARCED
MODEL
CALL:
KENYA
KINSKI-
JONES
Height:
5’8”
Hair:
Blonde
Eyes:
Brown
Measurements:
32, 24, 36
Agency:
Ford Models
Hometown:
Los Angeles
Instagram:
@lovekenya
How did you start modeling?
My mom was actually the one
who got me into it the most.
Around age 14 or 15, we went
to an acting and modeling
agency. Before that, I had
never really thought about it.
I guess my mom had known
Bruce Weber previously, and
she took me to a shoot. I was
still kind of shy and not sure
about it. He snapped some
photos and a couple of months
later, we did a shoot together
for Vogue Spain. It was a really
amazing experience.
Do your parents give good
career advice?
My dad, whether it’s school or
my career, is always like, “Put
in the work.” My grandpa used
to say, “If a task has once
begun, never leave it till it’s
done.” Growing up, when I was
in my awkward stages or shy,
my mom would always say,
“Go do it! Go try it!” She always
wants me to jump into things
and not be scared. It’s better
to try than not to try at all.
The new CK Jeans cam-
paign is getting some buzz
for its au courant themes:
dating apps and sexting.
What was it like to shoot?
This is the generation that
uses Instagram and texts
most often, so naturally,
certain aspects of sexu-
ality and dating are going
to somehow fall into that.
Being able to shoot it with
my boyfriend, Will, made
everything so much more
comfortable. There was never
any awkwardness that we
had to break through. It felt
like we were able to push the
limits because our relation-
ship is real.
Apart from your modeling
career, how do you plan to
apply your studies?
I think in my dream world,
I’d like to combine different
things — maybe write a
column for a magazine and
incorporate that with my
passion for animal advocacy.
The good thing with writing
is that you can incorporate it
into different things.
You typically spend your
summers in New York. What
do you like to do here?
L.A. is so chill, but here in New
York, you can walk out on the
street and anything can hap-
pen. Just walking around the
city is so fun and exciting for
me. That probably sounds so
“L.A.”-like, “Oh, what an idiot,
she likes to walk around the
streets” — but it’s just really
exciting.
FashionBriefs
WWD.COM AUGUST 2015, No. 1 17
ChartbyCarlosMonteiro;MoschinophotographsbyThomasIannaccone;GurungandWangbyGeorgeChinsee
QUOTED
“Demi [Moore]
started
tweeting
about my
brand, and I
joined Twitter
to say ‘thank
you’ to her.
I had never
tweeted, and I
was really not
into it. But I
immediately
got 500
followers
when she
responded
back to me.
This was
about five
or six years
back, when
the majority
of the fashion
industry was
not open
to social
media….The
minute that
happened,
I was like,
‘OK, there’s
something
here.’”
Prabal Gurung, speaking
to a trio of young Singapore-
based designers in New
York for the CFDA’s Fashion
Futures program.
Kate on
Canvas
Kate Moss
has a new title:
Our Lady of
Pop. That’s
what Nuyorican
artist Rodríguez
Calero — whose
works combine
elements of hip-hop street culture
and religious iconography — called
this surrealist collage of the model
that is among her 99 works featured
in the recently opened exhibition,
“Rodríquez Calero: Urban Martyrs and
Latter-Day Santos,” at El Museo del
Barrio in New York City. The exhibition,
part of the museum’s Women’s Series
Retrospectives, runs through Nov. 17.
— MAYTE ALLENDE
MILAN MODA
Benvenuto
Mandarin
Oriental
Milan welcomed its
newest luxury hotel last
week with the opening of
the Mandarin Oriental Milan.
Located on Via Andegari
near the city’s fashionable
Brera district, the property
has 73 rooms and 31 suites
and a 9,867-square-foot spa.
Featuring contemporary
Italian design by Antonio
Citterio Patricia Viel Interiors,
Mandarin Oriental’s 45th
hotel worldwide has a sleek,
black-and-white Mandarin
Bar with an adjoining court-
yard, and Seta, a fine-dining
restaurant helmed by chef
Antonio Guida. Both are open
to the public.
— LUCIE JANEK
HEADLINER
Wang’s Newsy
Week
When one door closes,
another one opens. That
could have been the mantra
this week for Alexander
Wang. Within the course
of just a few days, the New
York-based designer made
headlines for both his split
with Paris fashion label
Balenciaga — which he has
designed since late 2012
— and for the debut of his
largest store, a 6,460-square-
foot flagship on London’s
Albemarle Street. Reports
also simultaneously
surfaced that Wang had
found an investor for his
10-year-old, $100 million
eponymous business.
Balenciaga’s spring 2016
collection, to be shown on
Oct. 2 during Paris Fashion
Week, will be Wang’s last.
Both the designer and Balen-
ciaga’s parent company
Kering confirmed this last
Friday.
The London store, the 25th
in the designer’s portfolio,
spans three floors and was
designed by Belgian archi-
tect and designer Vincent
Van Duysen to fuse the
luxurious with the industrial.
“London is on a whole differ-
ent wavelength, and I think
the shopping here actually
trumps New York,” said the
designer.
As for speculation that
Wang is about to take on
an investor, market sources
said he is negotiating with
General Atlantic, the New
York-based growth equity
firm headed by chief execu-
tive officer William Ford.
— LISA LOCKWOOD, MILES
SOCHA AND JOELLE DIDERICH
THE CHART
Luxury’s Summer Slump
The dollar’s continued strength combined with mixed
sales results, especially in the accessories sector, resulted in
generally lackluster performance among luxury stocks.
*As of close of market on July 31, 2015
+14.79
TEDI
Ted Baker plc
50.24
RMS
Hermès International SCA
387.52
+2.43
KER
Kering
191.98
+3.63
BCm
Brunello Cucineli SpA
18.76
+0.63
SFERm
Salvatore Ferragamo
31.38
+0.52
MC
LVMH Moët Hennessy Louis Vuitton
186.63
+6.17
Symbol
Name
Close (USD)
3 Month
Change (USD)
-4.12
CFR
Richemont
86.01
-15.56
1913
Prada SpA
4.60
-6.11
BRBYI
Burberry Group plc
25.15
-32.12
KORS
Michael Kors Holdings Ltd.
41.99
-2.95
BOSS
Hugo Boss AG
120.04
THINKING BIG
Moschino Goes
Supersized
in SoHo
The second Moschino
store under the daffy
creative direction of Jeremy
Scott opened Monday at 73
Wooster Street in SoHo in
New York — the first opened
in Los Angeles earlier this
year. The designer, known
for his cartoonish vision,
was not interested in a
traditional retail concept for
the 3,500-square-foot space,
designed with architect Ida
Sborgia.
“I wanted very high ceilings
and an open loft space so I
can create large installations
and fixtures and have it rotat-
ing, like a gallery would if you
had sculptures,” Scott said.
The sculptures currently
displaying Moschino’s pre-fall
collection include a pair of
giant pleather high-heel
shoes, one with shelves
to display shoes and one
with a seat so customers
can sit on the shoe while
trying on shoes. Clothes are
displayed on hangers hung
on XXL hangers. There are
also enormous motorcycle
jacket-inspired bags and
shopping bags with shelves
cut out in the back to house
the handbag collection, and
a larger-than-life mannequin,
whose head almost hits the
ceiling, at the back of the
store. Aeffe USA president
Michelle Stein likened the
decor to the movie “Big.”
“I just wanted it to be very
fun, playful and exciting,”
Scott said. “It’s something
to put a smile on your face
and unexpected. You want to
have your picture taken in it.”
— JESSICA IREDALE
Photograph by BYLINE_NAME18 AUGUST 2015, No. 1 WWD.COM
XxxxxxxxXxxxx
MarketsAgenda
EDITED BY ARTHUR ZACZKIEWICZ
B
uying red lingerie? Chances are,
you’re a cat person.
And that “lace and sexy”
trend? Sure, it’s a thing — but
that same woman likely bought
a nude bra the day before.
At least, that’s according to
what Michelle Lam fondly refers to as her
“Rosetta Stone of bras,” created from 60 million
data points gathered from several million women
over the past three years.
She’s not only able to confirm trends like ath-lei-
sure, she know who wants it — and why.
As the founder of intimates e-tailer True & Co.,
Lam is working to dramatically change the way
women shop for bras. Starting with a two-min-
ute fit quiz on Trueandco.com, customers are
matched with a bra shape (rather than size),
according to its “TrueSpectrum.” This guides the
initial recommendations and familiarizes the cus-
tomer with providing personal information. From
there, the questions go more in-depth and the
recommendations more personal, as customers
browse, try on at home and become accustomed
to a culture of constant feedback. And Lam has
found that women want to share even more
details, whether it’s through a quiz after a return
or an e-mailed quiz tied to Valentine’s Day.
The inspiration behind the fit quiz was to avoid
the often uncomfortable fitting room experience.
The result has Silicon Valley investors excited
about the splash this could make in the estimated
$10.9 billion U.S. intimates market — more than
$6 billion of which was spent last year on bras
alone, according to The NPD Group.
“The intimates market in the U.S. is dominated
by one dominant brick-and-mortar player, with a
specific look for a certain type of customer,” said
True & Co. investor and Cowboy Ventures founder
Aileen Lee. “No one had figured out how to make
[bra-shopping] a better experience, but she [Lam]
has the quiz and the data-driven approach.”
At a time when the Harvard Business Review is
calling “data scientist” the sexiest job of the 21st
century and signing into a Web site via Facebook
Michelle Lam makes data sexy,
one bra at a time.
True North
credentials has become de rigueur, “data” is a
big-ticket buzzword. But utilizing that mysterious
treasure trove? That often remains more elusive.
Not so for Lam, whose approach to matching
women with well-fitting intimates has convinced
investors — mostly male, aside from Lee — to
contribute $15 million to True & Co. since 2012.
As an investor, Lee said, she’s looking for very
large markets, entrepreneurs who have a personal
connection to the opportunity of the problem,
and a new approach that would make the experi-
ence better for customers. “Michelle,” she said,
“has all those things.”
True & Co.’s approach has obvious applications
beyond the bra, and it is slowly pushing into pant-
ies and loungewear. (It recently sent out a “cheek
guide” to customers — i.e., for “the other 3-D part
of a woman’s body.”)
“Women are saying, ‘Wow, there is a new and
different way and the lingerie industry is starting
to listen to me,’” Lam said while sitting in True &
Co.’s sunny San Francisco SoMa district headquar-
ters. “We’re pushing further into ‘emotional fit’
territory.” This means that, in addition to making
recommendations based on her body shape, the
algorithm can help gauge what a woman wants to
see when she looks in the mirror. (For example,
four out of five women don’t want a push-up bra.)
“And our consumer research,” Lam said, “tells
us that they are looking for a different definition
of ‘sexy.’”
Lam is a different definition of “data geek.”
The 36-year-old Toronto native cut her teeth at
The Boston Consulting Group, which worked
with Victoria’s Secret on research that led to the
Body by Victoria bra and the development of the
“Women are saying,
‘Wow, there is a new and
different way and the
lingerie industry is starting
to listen to me.’”
Michelle Lam, True & Co. founder
By MAGHAN MCDOWELL
Photograph by WINNI WINTERMEYER
Angels. Later, she worked in due diligence at Bain
Capital Ventures, where, in 2008, she crunched
the numbers to confirm LinkedIn’s groundbreak-
ing $1 billion valuation.
“I remember being afraid that I was going to
lose my job, because no one had ever done that
before,” Lam said.
When she began working on True & Co., she
started with fit-tests in her home, where she
would gather feedback on taste and fit from
friends and family using a pen-and-paper quiz
modeled after Cosmo quizzes she took in high
school. Eventually, she needed a way to listen to
the customer in a scalable way — which means
data, and the online feedback loop she uses today.
“The goal was always delivering a beautiful
product that makes her body look amazing and
makes her feel amazing,” Lam said. “A lot of
companies who are trying to do things with data
don’t have such a strong goal in mind.”
In October 2013, Lam launched the True & Co.
brand of lingerie, informed by the cues that cus-
tomers had provided. Her feedback loop means
she is able to produce more efficiently. Thanks
to customer response, she recently identified a
potential manufacturing defect within 48 hours,
and confirmed it after two weeks — even though
the product had passed inspection. She’s also
found the “sweet spot” is making each silhouette
in eight to 12 sizes, rather than the larger offering
more common for department stores, since “not
everyone can wear a balconette.”
S
ince launching, the house brand has
grown at “multiples of percentages”
of the business, and has slowly started
expanding into loungewear, with plans
to expand its assortment into premium
lines. Most bras are $44 to $64, panties are $16 to
$22; a pajama set is $68. Although Lam calls the
True & Co. algorithm agnostic — meaning that it
recommends both True & Co. products in addi-
tion to other brands available on the site — this is
encouraging. (Of the 50 or so vendors it’s tested,
current offerings include recognizable names like
Natori and Calvin Klein, and others that are harder
to find Stateside, like French line Princesse Tam
Tam and Dutch brand Love Stories.) It also proved
to investors that women can, actually, self-report
what they want. She declines to provide revenue,
but says that business has doubled already this
year after strong growth in 2014.
In the Bay Area, investors are used to fielding
terms like “customer-use case” and “high-margin
business.” Lam is comfortable with these. But
she’s equally as fluent in terms like “chicken
wings” and “busting out” (which are unfavorable
symptoms of an ill-fitting bra, to the uninitiated).
Thus, she is often asked what it’s like to talk about
bras with “mainly dude investment committees,”
but she credits her history for giving her confi-
dence to go talk about underwear. “I have been
in the business before, so I know what it means to
articulate in a way that investors can get behind.”
After the most recent round of funding, Lam
says she took a step back to decide what “true
north” was for the company. The result was a mis-
sion to harness millions of pieces of information
to create or provide products that celebrate her
customers’ unique body shape and taste. This is
just one of the projects on the horizon.
“As a woman who has been through many
career incarnations, and has been on my own
personal journey to find myself, that’s a really lib-
erating moment when you know who you are and
what you want and what will make you happy,”
Lam said. “It’s more than just, like, lifting up your
boobs, right? It’s a whole outlook shift.” ■
MarketBriefs
Los Angeles-based
designer Kevan Hall, whose
gowns have been worn by
Michelle Obama, Allison Jan-
ney and Vanessa Williams,
is moving from the runway
to the fairway with a ladies’
golfwear line called Kevan
Hall Sport.
Hall said he listened to
his clients, who told him the
market lacked luxury looks
for the links. One of his long-
time New Orleans clients,
Beth DePass, also became
his partner and design
collaborator in the line.
“This line is for women with
sophisticated taste who
don’t want to run around
in yoga pants during the
day,” he said. Hall fashioned
technical fabrics with mois-
ture-wicking, antibacterial
and UV-protection prop-
erties into tops, bottoms
and dresses that borrow
from some of his elegant
eveningwear silhouettes
such as a ruffled skort and a
scuba-style dress.
“Women who are in shape
want to show off their bod-
ies, not look like one of the
guys,” Hall said. Thoughtful
design details include
racer-backs and armholes
that don’t create “back fat”
and pockets positioned to
avoid a bulky line when golf
balls or gloves are placed
inside. The clothes also have
enough give to allow women
to freely swing a golf club.
The Made in L.A. line fea-
tures mostly bright colors
and heat-transferred original
prints. Wholesale prices
range from $35 to $50 for
tops, $45 to $55 for bottoms
and $70 to $95 for dresses.
While Hall is launching the
line in the boutiques that
already sell his eveningwear,
he said it is also gaining trac-
tion for tennis and daywear,
and he plans to expand into
yoga, cycling and swimwear.
“I’m taking care of women
from morning to evening,”
he said.
— MARCY MEDINA
QUOTED
“Designing
is something
that we’ve
always
wanted to
do...to kind
of step back
and put
the looks
together and
be a part of
the shoot
when it’s
a different
model
modeling it
and actually
being the
creative
person
behind it.”
Kendall Jenner, on launch
of new line with sister Kylie
Fruit of the Loom is
relaunching and expanding
its plus-size underwear
line Fit for Me.
Although the line has
been out since 2001, Mark
Hartman, Fruit of the
Loom’s vice president of
marketing, said customers
didn’t know it existed
because of the packaging,
which prominently
featured the Fruit of the
Loom logo with the Fit for
Me messaging beneath it.
“Many plus-size women
said they were buying Fruit
of the Loom, but they had
never heard of Fit for Me.
They just thought it was a
tag line,” Hartman said. “By
us hiding that Fit for Me
portion, we realized that
we weren’t doing our job in
telling them the product is
designed for them.”
Hartman said Fruit of
the Loom reversed the
hierarchy and placed the
Fit for Me messaging on
top, made it larger and
placed the Fruit of the
Loom logo underneath.
The brand also added two
additional models to the
packaging and removed
the word plus size.
“Signage isn’t as
available as it used to be
so our packaging has to do
all of that work. Customers
want to have somebody
on that package that
represents their body type.
They also don’t prefer the
word plus at all,” Hartman
explained.
The collection, which
starts at a panty size nine
and goes up to a size 13,
includes a brief, boxer
brief and a high-cut style
made from either cotton,
microfiber, or a cotton-
polyester blend. The
underwear is sold in packs
of five and retails from
$9.99 to $12.44.
The new product began
shipping to big-box
retailers including Wal-
Mart and Kmart earlier
this year, but for fall Fruit
of the Loom is introducing
a microfiber layering
tank and a breathable
underwear program
made from cotton
micromesh. According
to Hartman, 60 percent
of plus-size underwear
purchases are made
within big-box stores, but
many plus-size shoppers
aren’t happy with the
in-store experience. This
is primarily due to the
separation of plus-size
bras and underwear.
“Retailers have a lot of
opportunities to speak
to this consumer. This
shopper would love
for things to be more
synergistic. Now they
have to search for their
underwear and bras,”
Hartman told WWD.
— ARIA HUGHES
Curve Appeal With Fit for Me
Fruit of the Loom is breathing new life into its new brand.
WWD.COM AUGUST 2015, No. 1 19
ACTIVEWEAR
Kevan Hall
Tees Off
Photograph by RYAN PFLUGER20 AUGUST 2015, No. 1 WWD.COM
RetailAgenda
EDITED BY EVAN CLARK
A
nd they said it would never last.
In 1999, when Jeffrey Kalin-
sky opened his Jeffrey flag-
ship on a desolate stretch of
West 14th Street in Manhattan’s
Meatpacking District, he faced
a Greek chorus of naysayers
who warned customers would never venture
to the far west environ, much less risk getting a
Christian Louboutin or Clergerie heel caught in
the cobblestone streets.
“People thought I was out of my mind,” Kalinsky
said. “This was the wild, wild west. I didn’t care
that there was nothing down here. I loved the
street and the river.”
In July, Kalinsky celebrated his 25th year in
business — his original store, which opened in
1990, still thrives in Atlanta.
Jeffrey New York has been a constant presence
in the Meatpacking District, even as designers
such as Alexander McQueen and Stella McCartney
came and went, replaced by brands such as Apple
and Levi’s. Kalinsky’s real estate decision seems
prescient now that the High Line and Whitney
Museum of American Art have sprouted up around
the 10,000-square-foot store and the neighbor-
hood seems poised for another boom.
But rents are rising so precipitously that Kalin-
sky himself may be priced out of the neighborhood
when his lease expires in April 2019. “I’m starting
to look at real estate,” he admitted. “We had a
great meeting with the landlord. I think we’ll able
to reach an agreement, but it’s too early to say.”
At Kalinsky’s disco-themed 25th anniversary
bash last month hosted by Ladyfag and DJ’d by
Honey Dijon, Nordstrom was commemorating
a milestone of its own — 10 years of owning the
Jeffrey business. The event, held in the store, fea-
tured buff bare-chested bartenders, female greet-
ers sewn into skintight sequined disco dresses and
the requisite drag queen, voguing for the crowd.
By now, the buttoned-up Seattle clan have
become connoisseurs of the downtown scene,
thanks to Kalinsky. When Nordstrom purchased
its majority stake in the New York and Atlanta
stores in 2005 for an estimated $40 million to
$50 million, Kalinsky seemed a tad intimidating.
“There was all this anticipation based on his
reputation,” said Pete Nordstrom, president of
Nordstrom Inc. merchandising. “Jeffrey has a big
reputation in our industry. What struck me most
is that the store didn’t have all the trappings that
a lot of luxury designer stores have, the opulence
and museumlike exclusivity. It was a very inclu-
sive place.
“He’s an understated guy,” added Nordstrom.
“He’s not avant-garde. He’s a pretty traditional
guy. He loves beautiful things and cares a lot about
quality and timeless characteristics.”
Kalinsky grew up at Bob Ellis, the shoe business
founded by his father, Morris. It is still the preem-
inent shoe store in Charleston, S.C., and is now
Jeffrey Kalinsky takes stock of his specialty
business and working with Nordstrom.
By SHARON EDELSON
Jeffrey at 25
“He’s not avant-garde. He’s
a pretty traditional guy.”
Pete Nordstrom, Nordstrom, on Jeffrey Kalinsky.
operated by his brother Barry. After working as a
shoe buyer at Barneys New York, Kalinsky decided
he wanted to open his own store in Atlanta. “I
wanted to live in a city where I would be comfort-
able as a young gay man,” he said. “Plus, there
were no good women’s stores in Atlanta. My father
reluctantly agreed to be my partner.”
Bob Ellis opened at the upscale Phipps Plaza
in 1990. Running the store “was a magical time,”
Kalinsky recalled. “Oh, to be 28 and have your
first baby store.” The 4,000-square-foot unit did
$2.5 million in 1990. “In a few years we were easily
doing $5 million annually,” he said.
He made his move into ready-to-wear, renam-
ing the store Jeffrey, opening a Jil Sander
shop, and selling Prada, Dries Van Noten, Ann
Demeulemeester and Richard Tyler Couture. “I
wanted to dress these women,” Kalinsky said. “I
didn’t like the way they were dressed.”
Then came the move into Manhattan and
Kalinsky was playing on an even bigger field. He
now carries the likes of Chanel, Dior, Saint Lau-
rent, Céline, Van Noten and Sacai, among others,
bolstering those with collaborations, such as the
capsule collection that Carolina Herrera is doing
for the store that will bow in February.
Then there is Kalinsky’s charity Jeffrey Fashion
Cares, which he founded in 2001 and calls “a labor
of love.” Yearly blowout events in New York and
Atlanta — many with barely clad male models —
attract 600 and 800 guests, respectively, and have
raised $5 million for organizations that support
LGBT civil rights, LGBT youth education, HIV pre-
vention and breast cancer research, among others.
Nordstrom in 2007 upped its stake in Jeffrey to
90 percent. As part of the original deal, Kalinsky
took on the job of raising Nordstrom’s designer
profile. “I helped to plant the designer flag for their
business,” he said. “I was able to strategize and
work across all categories and make a lot of prog-
ress. I helped evolve the business to a different
level. I played a role in establishing relationships
with Dries Van Noten, Balenciaga, Saint Laurent,
Gucci, Prada and Céline.”
Nordstrom said its designer business under
Kalinsky’s leadership grew by triple digits on a
percentage basis.
“Jeffrey had a skill set and talent that we didn’t
necessarily have,” said Pete Nordstrom. “It’s help-
ful for us to be aligned with someone who brings
a level of credibility.
“To get the best out of Jeffrey is to let him focus
on the things he likes to do,” Nordstrom added.
“We own [his] business and he runs it. Anything
else we get on top of that is like frosting on the
cake. We’d be open to additional Jeffrey stores. For
Jeffrey, they are like children. He feels accountable
for them and we don’t want to dilute that.”
The department store retailer is leaning on
Kalinsky for its own New York flagship opening on
57th Street in 2018. “He’s an important contribu-
tor,” Nordstrom said. “He’s got a great perspective
as a person who created a business in New York.
We’re coming in and trying to create something.
We want him to be engaged in the whole thought
process of what the store can be.
“I wish we could leverage him in a bigger way,”
Nordstrom said. “He’s a talented guy. We would
consider opening a Jeffrey boutique inside the
New York store. We’ve done some things with the
Jeffrey label before and we may do more. There’s
an ongoing discussion based on the things he’s
interested in. The door is completely wide open.
We have a hole in the ground” and the company
needs to fill it.
As for the association with Kalinsky, “It’s one of
the best decisions we’ve ever made,” Nordstrom
said. “It’s paid big dividends for us.” ■
RetailBriefs
QUOTED
“The fact
that Disney
parks are
incredibly
strong
speaks
to what
customers
are spending
on —
experience
and being
entertained
— and that’s
what stores
are not
providing
to the same
degree.”
Michael Gould, former
Bloomingdale’s chairman
As kids prepare to head
back to school and back to
college, store executives
are more focused on how
to get them back to retail.
As the season begins to
peak, the numbers haven’t
looked good.
A survey of 8,500 house-
holds taken late last month
by Brand Keys indicated a
nearly flat spending trend
with purchases dropping to
$650 from $652 a year ago.
The slight drop follows a
lowered outlook on spend-
ing from the National Retail
Federation.
There’s been little to
suggest an uptick in sales
activity in recent weeks. In
the final full week of July,
chain-store sales fell 0.2
percent from the prior
week, with furniture stores
continuing to prosper
while department and
apparel store volumes
remained weak, according
to The Retail Economist
LLC and Goldman Sachs.
Retail Economist chief
economist and principal
Michael Niemira had earlier
predicted a 2.1 percent
increase in b-t-s sales,
to $42.5 million, and a 2
percent growth rate for
apparel, to $23.6 billion.
He expects upcoming
tax holidays to give sales
a boost, while August, with
a 1.8 percent increase,
would lag both July and
September in sales growth.
But there’s a “late-to-
start, late-to-finish” element
behind much of the com-
plex sales-tracking going
on as economists and
analysts view the season,
increasingly characterized
by procrastination, confi-
dence among consumers
that promotions will be in
place when they want them
and a growing tendency
to separate the items that
their families need from
those that they want.
Whatever the outcome,
there’s little doubt that
August, the month when
many students begin to
return to classes, will be
pivotal in whether b-t-s is a
disappointment or the sur-
prise that so many retailers
have been waiting for.
As The NPD Group
recently said, it so happens
the final week of summer
is not only the month when
the majority of shoppers
finish their b-t-s shopping
excursions, but also the
month when the majority
begin them. Less than 10
percent start or finish b-t-s
shopping in June, while
31 percent start and 12
percent finish in July.
And a trend with which
retailers will have to cope
as they attempt to boost
their figures for the third
quarters of the fiscal year:
6 percent plan to start b-t-s
in September, and more
than three times that num-
ber, 19 percent, will finish
during the month.
But while August’s
greater importance grows,
those watching the market
aren’t seeing encouraging
signs, even as they remain
open to them. Craig John-
son, president of Customer
Growth Partners, said most
mall-based and apparel-fo-
cused retailers were ending
the second quarter “on a
downbeat” with “footfall…
weak almost universally
across the mall.”
“The only semi-good
news is that some comps
are ‘less negative,’” he said.
— ARNOLD J. KARR
MILLENNIAL SQUEEZE
Student Debt Piling On
In some ways Millen-
nials have it all, from the
largest numbers of any
generation in U.S. history
— 83.1 million, according
to the U.S. Census — to
historic levels of student
debt. The older half of
that group is leading the
comeback in denim sales
and the boom in hosiery
consumption.
As the Pew Research
Center reported last week,
they’re more likely to be
living with their parents
but are seeing their job
prospects improve.
But for the younger half
of the 18-to-34 year-old
demographic, navigating
into and through adult-
hood remains a challenge.
According to the Federal
Reserve, student debt
levels for 25-year-olds
nearly doubled between
2003 and 2013 and the
median income of families
headed by someone
under 35 stood at just
$35,300 in 2013.
DOUR OUTLOOK
Back to School
WWD.COM AUGUST 2015, No. 1 21
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$20,926
$15,912
$10,649
Source: Federal Reserve; Bureau of Labor Statistics
Mean Student
Loan Balance
for 25-Year-Olds
Agenda
EDITED BY JEAN E. PALMIERI AND ALEX BADIA
22 AUGUST 2015, No. 1 WWD.COM
W
ith the rise of the men’s ath-lei-
sure trend — the NPD Group said
U.S. sales of activewear were up
6 percent in the first quarter of
this year — the common narra-
tive is that denim is what’s taking the hit.  
While that’s true to a certain extent — NPD also
found sales within the men’s denim category were
down by 2 percent from last year in the same time
frame — it hasn’t stopped brands from entering
the market. 
“It’s never really a good time to launch a denim
brand, but we just felt like consumers are always
looking for something new,” said Casey Egan,
who cofounded Deconstructed Indigo Garments,
a men’s and women’s denim line, in 2014. “No mat-
ter what trend comes through, denim will always
have a place. We just want to challenge people
to think differently about the way they wear it.”
Egan’s line joins four other men’s denim brands
that are hoping to refresh the category by offering
interesting washes, special details and new silhou-
ettes that move beyond the skinny jean.
¬ Ron Herman, who owns
Ron Herman stores in
California and Japan,
admits the denim category is
crowded.
“Of course the market is
saturated, but there’s always
room for good product,” he
said.
That’s why Herman
launched his own line of
jeans in 2012. The collection
was originally designed by
denim veteran Simon Miller,
but now Brian Kaneda, who
also serves as a buyer for
Ron Herman boutiques,
designs the assortment.
Herman told WWD that he
initially only had plans to sell
it in his stores, but the line
has since been picked up by
retailers including Mr Porter
and Le Bon Marche, which
installed a Ron Herman
pop-up late last year.
The California-inspired
collection, which retails from
$270 to $1,200, is made in
Los Angeles from Japanese
fabrics. Each season the fits
remain the same – a tapered,
slim and straight leg – but
washes and details provide a
point of difference.
Classic five-pocket
straight-leg styles made from
Japanese selvedge fabric
are updated with intricate
stitched patchwork detailing
and a slim style is coated
with clear resin to create a
3-D effect.
“We have to inspire
customers to shop,” said
Herman. “But I’m not trying to
make a fashion statement.”
These five brands are
injecting newness into
the men’s denim market.
By ARIA HUGHES
RON HERMAN
Photographs by GREG VAUGHAN
Model: CHRIS BUNN at Wilhelmina
Styled by ALEX BADIA
Fashion Assistant: LUIS CAMPUZANO
Jean
Splicing
WWD.COM AUGUST 2015, No. 1 23
Briefs
¬ Frame has created buzz in the women’s market with fashion-driven
pieces and celebrity collaborations with model Karlie Kloss and photogra-
phers Inez van Lamsweerde & Vinoodh Matadin. Now, founders Jens Grede
and Erik Torstensson want to create a similar excitement in men’s wear.
“We started the women’s line because we felt like denim was no longer a
fashion item, but for men it’s more about the concept of style rather than
fashion,” said Grede, who added that men’s product currently makes up
5 percent of the business, a figure he expects to grow to 30 percent over
the next couple of years. “We’re not pushing the envelope on classic men’s
styles. We are just making small tweaks that modernize the fit.”
The men’s line launched in 2014 with one style and 11 washes. Now the
collection, which retails from $200 to $220, features two silhouettes in a
variety of washes. Grede said the brand will introduce denim jackets, shirts,
cashmere sweaters and T-shirts in later seasons.
To further push its vision for men’s, Frame recently tapped actor Matt
Dillon to front the brand’s first celebrity men’s campaign.
¬ Creative directors
Jake Sargent and Daniel
Corrigan, who were nom-
inated for a CFDA/Vogue
Fashion Fund last year, joined
Simon Miller’s eponymous
label in 2011. Up until now the
designers, who are inspired
by Japanese textiles and
indigo dyeing, have focused
on washes, but for spring
2016 they will introduce a
new fit for the first time.
“We have a narrow and
slim fit, but we are working
on something wider,” said
Sargent. “It’s a much more
fashion-forward silhouette.”
The current collection,
which is made in Los Angeles,
includes T-shirts, outerwear
and shirts along with washed
Japanese selvedge denim
that’s tinted or distressed.
The line is priced from $250
to $350 and is sold at retail-
ers including Steven Alan and
Barneys.
Corrigan said that its
customers aren’t looking
for trendy items, but rather
pieces with strong details.
“Men across the board are
much more driven by product
details and product knowl-
edge,” said Corrigan.“Our
best-selling product tends to
be our most special product.
Whenever we try to strip
things down, it doesn’t work.”
¬ Deconstructed Indigo
Garments cofounder
Casey Egan, who launched
the Melbourne-based brand
with actress Ella Rose Foord
in 2014, thought there was a
hole in the men’s market for
heritage denim with innova-
tive tailoring. The designer,
who previously worked at
Levi’s in the U.S. and Wrangler
in Australia, also noticed men
making their own changes
to denim.
“They were tailoring them
and changing them and
working on a new leg or
cutting the leg in,” said Egan.
“We wanted to offer those
shapes in premium fabrics.”
The brand, which also
produces women’s, manu-
facturers its jeans in China
using Japanese fabrics. Egan
plays with proportion and
offers silhouettes such as
a drop-crotch tapered style
and a cropped, slightly flared
model. “I personally want to
wear looser garments and
the cropped jean looks great
with a boot,” said Egan.
The line,which retails from
$190 to $290,is sold on the
brand’s e-commerce site
and features 10 sku’s across
women’s and men’s,but Egan
plans to double that with more
tops and knits next season.
¬ This New York-based brand started with women’s and men’s in 2009,
but took a short hiatus from the men’s collection before reentering the cat-
egory last year. R13‘s designer, who prefers to remain anonymous, admitted
that he was initially hesitant about moving back into men’s, but said the
current mood within the market swayed him.
“I just felt like guys all kind want the same thing and they look like clones
of each other,” said the designer. “But men’s wear is shifting very fast and
we’ve launched at the right time when guys want something different. We
are looking at this as a growth vehicle.”
R13 jeans, which are sold on the brand’s recently launched e-commerce
site along with retailers including Barneys New York and TheCorner.com,
are designed in New York City and made in Italy from Japanese fabrics.
The line, which retails from $350 to $450, includes new denim silhouettes
such as the Boy fit, which features a tapered leg with a drop crotch, and the
Skate, which has a fuller thigh.
“Men’s wear will slowly shift,” said the designer, “and these pant shapes
will become a regular thing.”
CAPSULE COLLECTION
Modern History
British heritage label Wol-
sey, known for its woolens
and outerwear, marks its
260th anniversary this year
and the label’s creative direc-
tor Chris Lee has gone back
to the company’s long-es-
tablished roots to create a
capsule collection to mark
the milestone.
The Made in the U.K. collec-
tion launches in September,
and comprises two coats,
a sweater and accessories
that take their cues from
Wolsey’s archives.
All the designs are made at
Wolsey’s factory in Leicester,
England.
TEXTILES
Reda Mill
Celebrates
150 Years
Reda has been produc-
ing luxury fabrics in Biella,
Italy, since 1865. Now the
company is on a worldwide
journey to mark its 150th
anniversary. That journey
started with an event in Milan
in February, followed by one
in London and then New York.
It will continue to Berlin in
November.
“We thought we would go
where our customer is,” said
Ercole Botto Poala, chief
executive officer, at the New
York event. “So we went to
our most important markets
to celebrate.”
To commemorate the
milestone, Reda partnered
with The Woolmark Company
on a multisensory exhibit
showcasing the process that
takes merino wool from raw
fiber to finished fabric. The
exhibit included photographs
commissioned from the
Magnum Photos Agency that
will used in a book, “150,” to
be released later this year as
a tribute to the company.
— JEAN E. PALMIERI
FRAME
SIMON MILLER
DECONSTRUCTED
INDIGO GARMENTS
R13
A look from
the collection.
The multisensory merino wool exhibition.
The label began in the
same area as a hosiery man-
ufacturer in 1755, and evolved
over the years to incorporate
outerwear, military garments
and sportswear.
In 2010, Jamey Hargreaves
— whose family founded
British retailer Matalan —
acquired the label, and set
about relaunching it as a
heritage and performance
sports brand.
Prices for the collection
start at 50 pounds, or $78, for
a beanie hat.
The line will launch at
Wolsey’s London flagship on
Soho’s Brewer Street.
— NINA JONES
24 AUGUST 2015, No. 1 WWD.COM
Nile Rodgers with Lena
Dunham in Lisa Perry.
EDITED BY TAYLOR HARRIS AND ERIK MAZA WWD.COM AUGUST 2015, No. 1 25
Très Chic
Nile Rodgers and Chic whipped the Hamptons scene into a frenzy. Photographs by Steve Eichner
Think pink. That was the
mantra at the fourth
annual Hamptons
Paddle & Party for Pink
on Saturday, in Bridge-
hampton, N.Y. Gwyneth Paltrow,
Lena Dunham and Nile Rodgers
were among those decked out in
rosy hues for a benefit that raised
$1.6 million for the Breast Cancer
Research Foundation through do-
nations and a silent auction of 11
special paddleboards designed
by the likes of Tory Burch, Aerin
Lauder and Oprah Winfrey.
“I feel so lucky that there are
a few people on the planet who
care about what I have to say and
that I have the opportunity to talk
about things that are important
to me,” Dunham said. While the
“Girls” star has often turned her
attention toward women’s repro-
ductive causes, she said, “Breast
cancer research is a new frontier
for me. I feel really lucky that the
people at BCRF were willing to
educate me.”
Rodgers, meanwhile, said the
evening was meaningful for him
because, “I’m a cancer survivor
myself.”
The disco star — who just
released a new album with his
band Chic in June — said his re-
surgence onto the music scene is
due to his 2013 collaboration with
Daft Punk, which has won him a
new kind of fan to his music. “I’ve
never been recognizable, which
is fine…but being in that Daft Punk
video was the first time people
started to see me,” he said. “Be-
cause Daft Punk has the robot
thing going on, a lot of people
who had never bought Daft Punk
records before or heard them
thought that Pharrell and I were
Daft Punk, and the robots were
our cool props.”
After cocktails, Chic delivered
a rousing performance that
sent the Moët & Chandon-fizzed
crowd into a raucous, Jack
Rogers-stomping dance scene.
— MISTY WHITE SIDELL
SAT
AUG
1
Nicole Miller
A performer at Paddle
& Party for Pink.Hannah BronfmanTracy Anderson
Laird Hamilton and
Gabby Reece
Hilary Rhoda
Lisa and Richard Perry
Gwyneth Paltrow
Arts & Culture
26 AUGUST 2015, No. 1 WWD.COM
Photograph by NYRA LANG
Styling by MAYTE ALLENDE
Hair by JOSUÉ PEREZ / TRACEY MATTINGLY
Makeup by MATIN / TRACEY MATTINGLY
Story by LEIGH NORDSTROM
First Lady of the Theater
Phillipa Soo soars in
“Hamilton,” Broadway’s
hottest show.
to attend school at Juilliard — recent
Tony winner Alex Sharp was among
her classmates. Shortly after gradu-
ating, she was cast in the acclaimed
off-Broadway pop opera “Natasha,
Pierre and the Great Comet of 1812”
and gave what the New York Post
described as a “star-is-born per-
formance.” In December 2013, she
joined “Hamilton” when it was in its
earliest incarnation.
“I came to New York for school, and
then I did this amazing show that
was received very well, with a great
group of people, and I felt like I was
creating something that I was really
proud of, and then ‘Hamilton’ was my
next big thing in New York,” she says.
“Part of me is like,‘When is it going to
be crap?’ There’s a part of me that is
aware that that’s a very special thing,
but also I don’t really know anything
else.”
From its opening at the Public last
November,“Hamilton” has resonated
with audiences for reasons beyond
its theatrical ingenuity. It’s been
praised as an allegory of America’s
long struggle with race and immigra-
tion, particularly at a time when the
two topics are at the forefront of the
national conversation, and also for
its cast, one of the most diverse ever
on Broadway.
“It kind of messes with your whole
concept of gender and race. It feels
like now. Like,‘Oh, this is what we’ve
been waiting for,’” says Soo, who
is Chinese-American.“It’s a nice
reminder that being in this country,
being an American, means that
you’ve come from something else.”
Much like her first big show in New
York, Soo has been singled out for
her performance — The New York
Times called her “fabulous” in an
early review — and in particular for
her showstopper,“Helpless,” which
tells in a single number of Alexander
and Eliza’s courtship and marriage.
It is slowly dawning on her that she
may be part of one of those original
ensembles that’s likely to be talked
about for years, a point that was
underscored when the actors on
“Hamilton” performed “What I Did for
Love” in the spring with some of the
original cast members of the seminal
Public musical “A Chorus Line.”
“A lot of times when people come
backstage, they’re sort of stunned,”
Soo says.“And I’m like,‘Don’t worry,
I’m on the same boat.’” ■
“A lot of times
when people come
backstage, they’re
sort of stunned.
And I’m like, ‘Don’t
worry, I’m on the
same boat.’” —
Phillipa Soo
“Hamilton,”“Hamilton,”“Hamilton.”
Since it opened in January at The
Public Theater in New York, Lin-
Manuel Miranda’s “Hamilton” is all
anyone can talk about in the theater.
Critics have gone out of their way
to come up with new superlatives
for a musical that’s only on its
surface a portrayal of the first U.S.
treasury secretary. Everyone from
President Obama (and First Lady
Michelle) to Madonna have scored
front-row seats to the toughest
ticket on Broadway. And somehow
on the road to the Richard Rodgers
Theatre,“Hamilton” has become the
first show since “The Producers”
to become a crossover theatrical
event, the subject of conversations
not just on Broadway but op-eds in
Washington for its deft mix of show-
biz pizzazz and social commentary.
For veterans like Miranda and
Jonathan Groff, who stars in the
show as King George III, the hubbub
might be all too easy to handle. But
also thrust into the spotlight has
been a 25-year-old actress with only
one prior credit to her name, and she
seems to be taking it all in stride.
“My life is just full‘Hamilton’ right
now,” Phillipa Soo says.The actress,
who plays Eliza Hamilton,is at a café
near the Rodgers taking a rare break
from rehearsals just a few days be-
fore opening night on Aug.6.“We’re
still working right now.It’s not like,‘And
now we’re here,on Broadway!’ We’re
changing lines,we’re re-blocking…”
A Chicagoan who practically grew
up on the stage — her grandmother
was a concert pianist, her mother
worked secretarial jobs in the the-
ater — Soo came to New York in 2008
Vionnet’s leather
dress. Necklace
by Astley Clarke;
earrings by
Samantha Mills;
rings by Catbird;
bracelet by Lillot.
Report Card
The bowl cut —
risky business for
anyone other than
a mom DIYing her
child’s haircut. But
she has some nice
lowlights.
Whoa.
Between the
shoulder
pads, the
bright red
hue and the I-mean-
business pose, this
look is aggressive,
Eighties power
bitch. She frightens
us. Even the rings
are scary.
The shoes are the
only part of this look
that reads modern.
The pulled-back
style shows off the
fact that this woman
does not age.
The tuxedo lapel
halter and cinched
waist emphasize
her impressive
bosom in
a classy,
relatively
covered- up
way. Thumbs
up on the
safety-pin
broach as an
unexpected
alternative to
necklace bling.
The shoe is edgy
and cool with a
touch of tribal red
around the ankle,
but, if we’re telling
the truth, the straps
give her cankles.
Religious
and cultural
insensitivities aside,
this could be a real
money-saver. No
one would notice
her “deflated
breasts” and
crow’s-feet.
The
backpack
is as big,
shapeless
and brand
neutral as
the burqa.
It’s a little
matchy-
matchy.
The gold thongs
are bare and a
little glitzy — not to
mention frowned
upon in public by
the Muslim religion.
A cool sneaker
would’ve been more
sensible.
WWD.COM AUGUST 2015, No. 1 27
B+
HelmsphotographbyMichaelLoccisano/GettyImages;BanksbyVincentSandoval/WireImage;BidenbyChipSomodevilla/GettyImages;BündchenbyCHP/FameFlynetPictures;
HayekbySteveGranitz/WireImage;JidennabyShareifZiyadat/GettyImages;MarabyMarcusIngram/GettyImages;CasiraghibyWalterGatti/SplashNews/Corbis
*Allegedly
Gisele Picks an Unwise DisguiseFrom Pierre’s Prince Charming to Tyra’s Power Bitch, here are the best and worst of the week.
Ed Helms Tyra Banks Joe Biden
Kate Mara Pierre CasiraghiSalma Hayek Jidenna
D AB+
The Vice
President should
use SPF 50 when
hitting the golf
course, especially
if he’s thinking
of running for
president.
The light blue
shirt paired with
the geometric
patterned red tie
gives him British
banker flair
that shows his
worldliness.
Although this suit
is nothing to rave
about, it seems
appropriate for him.
However, a more
fitted silhouette
would give him
a more youthful
appeal.
D
His boy-next-door
look works wonders
on the big screen,
but in the world of
fashion, that can’t
save this strangely
shrunken style.
The soft-
shoulder cropped
silhouette of the
blazer is too
small for him, yet
the sleeves are
too long.
Something
is going on in
Hollywood with
leading men
wearing skinny
khakis. This pair in
Army green works
well with the beat-up
boot but clashes
with the light blue
shirt and navy
blazer.
C
Trim your beard,
you look like a goat.
The three-piece
suit fits him well
but when paired
with the two-tone
graphic tie, the
round-collared
shirt, pocket
watch, pocket
square and gold
statement buttons,
it’s too emotionally
draining.
We are all for
a playful pant
proportion, but the
ultraskinny cropped
silhouette feels a
bit out of place with
the vintage flair of
the ensemble. The
whiskey colored
shoes match the
cane — even so, he
should lose both.
There’s no
quicker way to
look fashiony than
lopping off your hair.
The pixie has a nice,
messy texture to it
and her face can
handle the cut. Plus,
it also shows off her
cool ear cuff.
The collar goes
with the Peter Pan
’do, but we could do
without the floppy
bow. Also, a lacy
bra would have
worked better
underneath the
top, rather than
this full-coverage
camisole. That said,
the look has a little
bit of everything —
lace, military vibes,
collars, bows — and
somehow it all
works together.
He’s the spitting
image of his late
father, Stefano, with
the straight nose,
chiseled features
and beautiful wavy
hair. That’s the hair
of Prince Charming.
In this perfectly
tailored white tie
and tails he would
be the envy of
everyone at last
year’s Met Gala.
At 6 feet 2 inches,
the traditional
evening ensemble
works great with
his elongated
silhouette, perfectly
fitted pants and
patent leather
shoes. And the
diamond shirt studs
make the outfit
even chicer, if that’s
possible.
Gisele Bündchen*
B- FAIL
City File
28 AUGUST 2015, No. 1 WWD.COM
BY KAREN PARR-MOODY
ILLUSTRATIONS BY
STUDIO MUTI
COUNTRY
POPULATION
LAND MASS
OFFICIAL LANGUAGES
MAJOR INDUSTRIES
NOTES
USA
648,000
English
Music, health care, publishingand tourism
The 42-foot-tall Athena sculp-ture in Nashville’s Parthenon is,in part, a portrait of Elvis Presley.Nashville sculptor Alan LeQuirewas inspired by the singer’s“perfect fifth-century-BC classi-cal features.”
497mi2
Tuning In to Nashville
Before Nashville was dubbed an “It” city, it was known as the
home of a) the Grand Ole Opry, and b) Southerners, creating
a flavorful mélange. Newcomers have added edgy music,
James Beard Award nominations, contemporary art, escalating
tastes and a burgeoning Nashville Fashion Alliance. Says Matt
Eddmenson, cofounder of local jeans brand Imogene + Willie,
“It’s all moving so fast.”
EATDRINKSTAYSEESHOPEVENTS
WWD.COM AUGUST 2015, No. 1 29
The Guide to Nashville for the first-time explorer.
The HipsterThe Music Insider The Southerner
Retail and
Business
Scene
A decade ago The Mall at Green
Hills — Nashville’s largest upscale
retail development — was lacking
in luxury. Then Tiffany & Co. and
Louis Vuitton opened in 2006,
followed by Nordstrom in 2011. The
868,000-square-foot store has
amassed enough brands to make it
a true shopping destination. These
include Burberry, Jimmy Choo,
Kate Spade, Tory Burch, Seven For
All Mankind, Tumi, Michael Kors,
Coach, Omega and David Yurman.
Nearby is Hill Center Green Hills,
a 225,000-square-foot mixed-use
development that launched in 2007.
Anchored by Anthropologie and
Whole Foods, it is a blend of national
and independent retailers, the latter
including Billy Reid, the fashion line
designed by a Louisiana native.
Another indie is H. Audrey, a high-
end fashion boutique from country
singer Holly Williams, who opened
it in 2007 “because we didn’t have
very much.”
Other shops are scattered about:
jeans store Imogene + Willie, in the 12
South area, was among the first to
gain national interest. Now, the newly
founded Nashville Fashion Alliance
wants to buoy area designers. Van
Tucker, chief executive officer, says
it is creating a sewing training acad-
emy for underserved populations
through a partnership with the
Catholic Charities of Tennessee and
The Housing Fund. “This is so that
we can not only help those people
learn a trade, but supply our industry
with a skilled workforce,” she says.
Nashville brands supporting the
alliance include Imogene + Willie, Billy
Reid, Otis James, Manuel, Valentine
Valentine (by “Project Runway” alum-
na Amanda Valentine), Emil Erwin,
Elizabeth Suzann, NISOLO and Kayce
Hughes (niece of Lilly Pulitzer).
For the lucky few, the hot ticket is a live show at
Jack White’s Third Man Records, one of dozens
of recording studios in the hip enclave of East
Nashville. Various acts from White’s label have
played on its stage, including Alabama Shakes,
Flat Duo Jets and The Kills.
Robert’s Western World downtown is the
ultimate honky-tonk, where live bands lure both
hipsters and white-haired sweethearts onto the
dance floor. With its boot-lined walls and top-
notch musical lineup, it imbues its tourist-addled
street with authenticity.
Bluegrass, classic country,
blues and Western swing keep
The Station Inn hopping, as
have Reba McEntire, Norah
Jones, Robert Plant and
Dierks Bentley.
Manuel Cuevas, “The King of Cowboy
Couture,” creates bespoke embroidered and
rhinestone-studded garments at his
atelier, Manuel’s, and has made suits
for singers from Elvis to Jack White.
Holly Williams, a country singer (and
granddaughter of Hank Williams),
sells high-end fashion at H. Audrey.
Hit Billy Reid for luxe preppy
fashion, and Hatch Show
Print for hand-screened
posters like those that
touted vaudevillians
and Opry stars.
Imogene + Willie is the go-to for custom-fitted
jeans. At Wilder, one finds Electra Eggleston
home fabrics, inspired by photographer William
Eggleston’s drawings. And a guy can’t get the
Nashville look without a handmade Otis James
bow tie.
Galleries in the Wedgewood-
Houston Arts District,
including Sherrick & Paul
and David Lusk, are the
latest in the ever-growing
art scene.
Adelicia Acklen, the 19th-century owner of
the Belmont Mansion, had great taste
— and major money. Completed
in 1953, her villa is now a
museum that showcases
many aesthetic gems. One is
in Adelicia’s bedroom: hand-
blocked wallpaper made by
the fabled Dufour of Paris.
At the Schermerhorn Symphony Center,
musicians watch fellow musicians perform
against the grand canvas of the Nashville
Symphony. In the last decade the symphony
has gained listeners — beyond blue bloods — by
backing country artists, including Willie Nelson,
Lyle Lovett, Wynonna Judd and LeAnn Rimes.
Architect Nick Dryden coaxed the 404 Hotel’s
five rooms out of a mechanic’s garage to create
this cozy downtown nest, which offers Sferra
linens and Malin + Goetz toiletries.
Opened in 1910, the five-star Hermitage Hotel
has welcomed Bette Davis, Greta Garbo and six
American presidents. Italian sienna marble and
Russian walnut are among the materials that
decorate the building; Persian rugs are also in
the mix.
The Hutton Hotel is a music industry favorite
located a few blocks from Music Row. The
contemporary-style lobby includes local artwork,
and the hotel is filled with sustainable furniture,
bamboo flooring and energy-efficient EcoDisc
elevators, all part of its eco-friendly commitment.
The 5 Spot bills itself as
“the musician’s hangout:”
Wanda Jackson, Kid
Rock and Sheryl Crow
have all played at this
dance party venue.
No. 308 pairs mixology with
what many Nashvillians
crave: a chill vibe. And
Pinewood Social adds six
reclaimed wood bowling
lanes to its ambience.
The Oak Bar’s dark wood-paneled walls ooze
clubby sophistication. Located in the
Hermitage Hotel, it features a wide
selection of expensive whiskeys,
along with a menu from the
esteemed Capitol Grille.
Hot spots have popped up as fast as chefs’
James Beard Award nominations. Rolf and
Daughters is the Germantown brainchild
of Philip Krajeck, who has garnered multiple
nominations. The menu of rustic Italian fare
emphasizes house-made doughs, seasonal
produce and whole-animal butchery.
Husk’s menu — directed by James Beard
Award-winning chef Sean Brock — changes
daily and features only Southern ingredients.
Nearby farms supply grass-fed, grain-finished
Angus beef, country hams and sustainably
grown produce. Here, Southern flavors find a
gastronomic temple, figuratively and literally;
Husk is in a beautiful mansion from the 1870s.
Union Common, a restaurant wedged narrowly
between Broadway and Division streets, is an
easy stroll from Music Row, making it the new
wine-and-dine spot for country stars and music
insiders. The menu ranges from small plates
to the decadent Nashville Tower, an iced array
of shellfish.
By PETE BORN Photographs by MAURIZIO DI IORIO Typography & Illustrations by FABIAN DE LANGE
Ulta Beauty is one of the hottest retailers in the U.S. prestige market, a fact that is explored in depth in the following
pages, featuring interviews with the leaders who shaped modern Ulta and top brands that built the business.
Its unique merchandising structure of mass, class and salon makes Ulta Beauty what The NPD Group’s Karen Grant calls
“the trifecta of beauty.” She observes, “They have pillars to build upon and levers they can press.” With first-quarter
growth of comparable-store sales at 9.7 percent, Ulta is just getting warm as it celebrates its 25th birthday.
U L T A B E A U T Y ' S 2 5 T H A N N I V E R S A R Y
W W D M I L E S T O N E S
WWD.COM AUGUST 2015, No. 1 31
32 AUGUST 2015, No. 1 WWD.COM
WWD MILESTONES
Stepping on the Gas
t 25 years old, Ulta Beauty is
one of the hottest beauty retail-
ers in the U.S. with a reach of
more than 800 doors, and plans
to get bigger fast.
But despite its size and might,
beauty vendors and Wall Street analysts alike
applaud the retailer for its nimbleness.
Ulta’s constant tinkering with the mix, merchan-
dising and marketing is part of its quest to draw
in more customers.
“We are not complacent,” said chief executive
officer Mary Dillon. “It’s an ever-changing world
we live in….We’re always going to be in a mode of
testing and experimentation. We can’t stand still,”
A
she added, referring to a competitive landscape
that includes Sephora, Kohl’s Corp. and Macy’s
Inc., among others.
The strategy reflects a key management tenet of
Dillon’s that she calls “continuous improvement.”
“We’re in a mode of being celebratory, but we’re
just getting started,” she declared.
The retailer is expanding its presence at a rap-
id-fire pace, opening approximately 100 units a
year with a goal of reaching 1,200 doors by 2019
in a bid to introduce its nameplate to more con-
sumers across the country. The store expansion
is part of Dillon’s five-year growth plan, adopted
in 2014 and intended to result in 500 new stores,
an e-commerce operation that accounts for 10
Ulta Beauty is celebrating its achievements,
while keeping its eye on the future.
By MOLLY PRIOR Photographs by LUCY HEWITT
►
ULTA'S
SILVER
STREAK
34 AUGUST 2015, No. 1 WWD.COM
WWD MILESTONES
Stepping
on the Gas
ULTA'S
SILVER
STREAK
percent of sales and com-
parable-store sales growth of 5 to 7 percent a year.
Ulta also is testing a smaller-format store, which
is half the size of its typical 10,000-square-foot
box, in two rural markets — Vernal, Utah, and Mor-
ganton, N.C. — and plans to roll out several hun-
dred of them. It’s also looking at a 7,500-square-
foot box in certain markets.
hen Dillon took the reins as
ceo two years ago, she inher-
ited a beauty emporium that
housed mass, prestige and
salon brands, along with beauty
services, under one roof. This
democratic view of beauty retailing has amassed
a legion of loyalists. After all, approximately 80
percent of its sales come from its 15.5 million
loyalty club members. But there are still plenty of
beauty shoppers who are unfamiliar with the Ulta
name, and many who do know the retailer aren’t
aware that it also offers hair, brow and skin-care
services. Dillon acknowledges that Ulta’s name
recognition lags behind many of its competitors.
But she sees this reality as a huge opportunity,
particularly since Ulta has yet to fully turn on its
marketing might.
Ulta plans to do just that in September, when it
launches its first national advertising campaign,
“Go Ahead, Lose Yourself,” across TV, radio, dig-
ital and social media.
The campaign, coupled with Ulta’s growing
store base, could help double its share of the
U.S. beauty market to 6 percent, up from its
current 3 percent, over the next five years, said
several analysts.
Ulta’s stepped-up marketing effort includes its
UltaMate Rewards loyalty program. In early 2014,
the retailer migrated all program members to one
platform and invited its sales associates to join so
they can better explain the benefits to consumers.
“The way it works is the more you spend, the
more points you get, and our guests love that
simplicity,” Dillon said. “But behind that, we
have the ability to use good, keen consumer
insights to partner with our vendors and say,
‘How can we help you understand how to grow
your brand?’ And for our guest, she gets more
personalized offers.”
Dillon said one of the most surprising findings
gained from the data is that only 7 percent of its
loyalty-card members have visited a salon at Ulta.
“So now that we know only 7 percent of our
guests have tried our salon, you can imagine what
a great opportunity that is for us to help them
understand the possibilities and give them offers
to come in and try the salon with services like
blowouts and updos.”
Dillon said salon patrons spend two-and-a-half
times the amount and shop twice as frequently a
year as Ulta’s nonsalon customers.
At an Ulta store in Glendale, N.Y., a sign sta-
tioned alongside the salon read: “An invitation to
new guests: $30 haircut and style.” It encouraged
customers to book online at ulta.com/salon.
Elsewhere in the store, Benefit Cosmetics offers
brow-shaping and Dermalogica provides skin-care
treatments in its MicroZone pod.
Dermalogica entered Ulta doors in 2006, and
2 5
Y E A R S
O F
U LTA
1990 Ulta3 — which
was named for the three
pieces of the business:
salon, fragrances and
cosmetics — is founded as
a discount beauty retailer
by two former Osco Drug
presidents, Dick George
and Terry Hanson.
1990 Ulta3 opens a cor-
porate office and its first
store in Lombard, Ill.
1990 By the end of the
year, Ulta3 has five stores
and a distribution center,
all in Illinois.
1995 Ulta3 launches its
first rewards program,
Club at Ulta.
1999 Ulta3 becomes Ulta
and focuses on additional
salon services and more
extensive personal
amenities.
2000 Ulta.com is
launched.
2000 Ulta debuts its
private label with a cos-
metics line.
2001 Ulta celebrates its
100th store opening.
2002 Ulta adds its first
significant prestige brand,
Bare Escentuals.
2003 Ulta tests a second
loyalty program, UltaMate
Rewards, to give guests
points on every dollar
spent to redeem on any-
thing offered at Ulta.
offers services across the chain. It’s also worked
with Ulta to create customized treatments, such
as the Power Resurfacing Peel, or three 30-minute
sessions over the course of three weeks priced at
$40 each, or three for $90.
Steve Kurland, global ceo of Dermalogica, said
Dillon’s vision for Ulta centers on the customer.
“It’s really quite simple: She seems to have
focused the entire company on the total reason
for being and that is the guest,” Kurland said. “It’s
a very ambitious vision, but it is backed up by the
results that she has achieved in a short time.”
Wall Street analysts are also particularly keen
on Dillon.
“It’sthebestboxoutthere,”saidOppenheimer
W
STEPPING ON GAS CONTINUED:
►
►
36 AUGUST 2015, No. 1 WWD.COM
WWD MILESTONES
ULTA'S
SILVER
STREAK
Stepping
on the Gas
2006 Ulta becomes Ulta
Beauty.
2007 Ulta goes public,
with stock listed on NAS-
DAQ, raising $153.7 million.
2008 Ulta invests in its
second distribution center
in Phoenix, Ariz.
2008 NYX is added
to Ulta's brand assort-
ment, and the company
launches Benefit
Boutiques with Brow Bar
service.
2008 Ulta launches its
private label bath, skin, sun
and hair lines.
2009 Ulta launches
annual Breast Cancer
Research Foundation
campaign, which has
raised more than $10.5
million to date.
2010 The company rolls
out Philosophy boutiques
and expands its Benefit
Brow Bars
and Dermologica
skin-care services.
2010 Tarte is added to its
brand assortment.
2011 The Men’s Shop is
introduced, which includes
fragrance, skin care and
grooming.
2014 All loyalty program
members are converted to
UltaMate Rewards.
2014 Ulta achieves its
first $1 billion quarter in Q4
and reaches $3.2 billion in
sales for fiscal year 2014.
2015 Ulta Beauty hits 800
stores in 48 states and
opens its fourth distribu-
tion center in Greenwood,
Ind.
2015 The company grows
UltaMate Rewards to 15.5
million members.
analyst Rupesh Parikh,
calling it the go-to place for suburban beauty
enthusiasts. “It continues to enhance its merchan-
dising, which is one of the keys to their success.”
Ulta’s financial performance has kept those
accolades coming.
The retailer continues to grow at a staggering
rate, achieving $3.24 billion in sales in 2014, or
a 21.4 percent gain over the prior year. Its total
same-store sales, which include its e-commerce
site, gained 9.9 percent during the year.
lta has steadily attracted pres-
tige brands to the assortment.
It’s a path forged by former ceo
Lyn Kirby, who wooed brands
by knocking on doors and dra-
matically improving the in-store
experience. Now Benefit Cosmetics boutiques
are found in approximately 600 locations, and
Lancôme and Clinique boutiques each occupy
about 100 doors. The addition of these brands
has helped fuel those double-digit sales gains, as
prestige cosmetics and skin care lead the compa-
ny’s growth.
While walking through the Glendale, N.Y., store,
where upscale brands such as Bare Escentuals and
Philosophy are front-and-center, Dillon is quick
to point out that mass brands, or what she called
“accessible brands,” are also an essential part
of Ulta’s positioning and competitive advantage.
“What we are all about is creating a differentiated
environment, understanding the guest, where she
shops and what she wants,” said Dillon. “We are
always going to have competition, but nobody does
what we do on the scale we do it. We’ve got all these
categories, price points and services. It’s the notion
of all things beauty in one place.”
When speaking about strategy, Dillon frequently
refers to putting the customers — and the store
associates — at the center of Ulta’s decision-making.
“The guest insight is really driving our model
and the way we think about categories, products
and services. We are very focused on a [consumer]
segment that we call the beauty enthusiast,” Dillon
said. “She’s somebody who absolutely loves to shop
for beauty. She likes to curate her own look, and
walk across the store and pick from lots of great
categories and brands. When she wants assistance,
she can get it, but sometimes she doesn’t. For her, it
is absolutely critical that she can pick up a Maybel-
line product, an Urban Decay product and a Murad
product. She loves the notion of being able to put
them all together.”
Dillon’s focus on the customer also is winning
her points with Ulta’s vendors.
Bare Escentuals has collaborated with the
retailer to create a number of exclusives tailored to
the Ulta consumer, using its customer relationship
management data, or CRM.
“[Mary’s] brought a strategic vision,” said Bare
Escentuals ceo Simon Cowell. “She has a strong
brand and marketing background and most
importantly, she has a great passion for the guest.”
He added that Dillon — who prior to joing Ulta in
2013 was ceo of U.S. Cellular and held marketing
posts at McDonald’s Corp. and PepsiCo Inc. — has
a natural curiosity about the business. He recalled
that shortly after she arrived at Ulta, she visited
Bare Escentuals headquarters in San Francisco
and spent the entire day with Cowell and his team
as he took her through the company’s history. She
then used these types of meetings to help inform
her vision for Ulta, said Cowell. “Something has
kind of shifted at Ulta. It’s asking what’s next for
Bare Escentuals and how can Ulta amplify that?
It’s thinking in a more visionary way.”
Ulta continues to test new brands in the assort-
ment, particularly though its Web site, where it
can gauge consumer interest before rolling out
to stores. That was the case with Skyn Iceland,
which the retailer began selling on ulta.com in
September 2013, before introducing one product,
Hydro Cool Firming Eye Gels, to stores one year
later, said Skyn Iceland’s president and founder
Sarah Kugelman. The range will begin rolling out
to more stores in August and is slated to be in all
800 Ulta doors by February. “It’s a game-changer
for us. It will double the size of our business,”
said Kugelman.
William Blair analyst Daniel Hofkin said of Dil-
lon, “She came in with fresh eyes and said, ‘How
fast should we be growing? What is working and
what is not?’ She’s very good at identifying what
Ulta’s strengths are. She’s not trying to make
sweeping changes for the sake of it.”
Dillon prefers to take a more evolutionary
approach. “I am a big believer in testing and
learning and not changing things too dramatically
overnight. It’s too risky,” Dillon said. “If something
is not broken, I’ve learned not to go ahead and try
to fix it. Let’s sit back and try to hypothesize about
what areas will continue to make us stronger.”
Now, she is fine-tuning, constantly asking,
“What can we do better?”
Parikh at Oppenheimer said, “There’s so much
growth ahead. They have so much opportunity
in the U.S.” ■
U
STEPPING ON GAS CONTINUED:
Terry Hanson
1990 — 1999
In Ulta’s first year, Hanson
raised $11 million in
venture capital and opened
five stores and a distribution
center in the Chicago
area. In 1995, he helped
launch the company’s
first rewards program,
Club at Ulta. The cofounder
also launched ulta.com.
Lyn Kirby
1999 — 2010
Kirby transformed the
retailer from a mass-market
emporium to a national
chain that housed salon
services and both
mass and prestige brands
under one roof. She also
established Ulta’s annual
Breast Cancer
Research Foundation
campaign in 2009,
which has raised more
than $10.5 million
to date to fund research.
Chuck Rubin
2010 — 2013
Rubin introduced The Men’s
Shop in 2011, which
includes fragrance, skin
care and grooming. He
also increased Ulta’s square
footage at a rate of about
20 percent a year, or more
than 100 doors a year.
Each chief executive officer
of Ulta has driven the
company to new heights.
Here, a look at each former
ceo’s accomplishments
during their tenure at the
beauty retailer.
L E G A C Y
B U I L D E R S
www.BrantInStore.com
1.800.265.8480
Congratulations
WWD MILESTONES
Key BrandsULTA'S
SILVER
STREAK
38 AUGUST 2015, No. 1 WWD.COM
L’ O R É A L
PROFESSIONAL
Partner Since
1995
While Ulta Beauty carries hundreds of brands,
six have been the backbone in significantly building
the business. Here, a closer look. By JULIE NAUGHTON
For L’Oréal Professional,
Ulta Beauty has offered
success for multiple
brands, including
hair-care brand Redken
and nail line Essie.
“L’Oréal’s Professional
Products Division officially
started selling Ulta Beauty
in 1997, when it was still
called Ulta 3,” said Pat
Parenty, president of
L’ O R É A L
PROFESSIONAL
Partner Since
1995
the L’Oréal Professional
Products Division. “Our
early conversations were
very focused on increasing
the quality of the salon
experience for both the
Ulta consumer and the Ulta
stylists. Over the years, the
strategic partnership has
led us to strengthen our
mutual efforts in develop-
ing new service opportuni-
ties, experiment with new
merchandising ideas, test
and learn on new products
and promotions, and
improve our training and
education programs.”
Parenty noted that his
division currently sells 600
stockkeeping units across
five brands in Ulta.
“We also support Ulta’s
salon professionals with
hair-color, texture [styling
products] and salon treat-
ment products that have
over 200 sku’s,” continued
Parenty. Retail prices range
from $8.50 for an Essie
nail enamel to a treatment
mask from Pureology for
more than $50.
Parenty believes that
it’s been “a shared passion
for the salon service
providers” that has built the
backbone of the business.
“We provide them the
education and support
they need to provide the
best possible customer
experience and prosper as
Ulta salon stylists,” he said.
“Working as a strategic
partner, we have shared
new ideas, developed
and improved our sales,
marketing and education
programs, shared results
so we could learn and
adopt best practices, and
we took some mutual
risks to try new ideas that
are in line with current
consumer expectations,
as well as pushing the
envelope to anticipate
future consumer desires
in beauty. We work closely
with Ulta on our national
promotion calendar
as well as developing
specific promotions that
are tailored to the Ulta
customer profile.”
’
40 AUGUST 2015, No. 1 WWD.COM
WWD MILESTONES
Putting on a New FaceULTA'S
SILVER
STREAK
Today, Ulta’s stores are in a much different
place. That was clear when Winkler recently
strolled through a store opened in February in
Auburn, Calif. An example of the seventh iteration
of Ulta’s store design is a far cry from the second-
and third-iteration stores Winkler encountered
early on. It combines an unprecedented number
of prestige brands with mass brands and profes-
sional hair care, and upgrades the look to match
the upgraded beauty selection.
“The original DNA hasn’t changed, but it’s
matured tremendously and, every year, con-
tinuously matures, and the guest experience
has improved and continues to improve,” said
Winkler, now Ulta’s senior director of store plan-
ning and design.
Ulta’s typical store houses some 400 brands
and occupies 10,000 square feet with 950 square
feet dedicated to a full-service salon. Power cen-
ters are mainstays of Ulta’s retail real estate, but
malls are increasingly in the real estate mix. As of
May 2, the retailer operated 797 stores in 48 states
and is progressing toward a goal of reaching more
than 1,200 stores.
Winkler and his team of 14 store designers and
planners get involved prior to Ulta signing leases.
It takes six to eight months for a store to be com-
pletely designed and built out. “What we’ve really
created in the store design is [a] kit of parts and a
philosophy of flexibility,” Winkler said.
The exterior is usually white to provide a fresh,
clean invitation to enter the store premises, and
has orange awnings and a gray sign that appears
white at night. Windows are decorated with
hen Erwin Winkler was first
courted to join Ulta Beauty as
vice president of creative ser-
vices more than a decade ago,
the Manhattanite had never
heard of the specialty beauty
retailer. He was flown from New York to Chicago
to size up its retail format and what he saw was
a drugstore-like environment with aspirations
to be grander.
At the time, Lyn Kirby, then president and chief
executive officer of Ulta, told him, “We want to get
to a different place,” and Winkler, who formerly
held positions at Coach, Escada and Ralph Lau-
ren, was sold. “My reaction was basically that I get
it,” he said. “I try to bring as much style and lux-
ury to the store design as we can possibly afford.”
W
Erwin Winkler takes Ulta from a
drugstore mind-set to a three-dimensional
mass, prestige and salon emporium.
By RACHEL BROWN Photographs by JUSTIN KANEPS
Erwin Winkler takes
in the scene at the
Auburn, Calif., store.
►
42 AUGUST 2015, No. 1 WWD.COM
WWD MILESTONES
Putting on
a New Face
ULTA'S
SILVER
STREAK
promotional and branded mate-
rials. An 80-foot frontage expanse permitting
customers to gaze into the store is ideal. “As we’re
starting to get more walking locations, we are
starting to think about evolving the windows in
a very different way. That’s yet to come, but it’s
definitely on our radar,” Winkler said.
As customers walk into the store, tables stocked
with value and important new items greet them.
Those items are swapped out every three weeks
or so. As customers travel deeper into the store,
Winkler described how they go from beauty wants
at the front — color cosmetics and fragrance — to
beauty needs toward the back, where styling tools,
professional hair care and the salon sit. Along the
walls are lit arches, newer elements of the stores,
dedicated to select brands and categories.
inkler, who majored in art his-
tory at Dartmouth College and
obtained a graduate degree in
architecture from Harvard Uni-
versity, likened the store layout
to that of a medieval church.
He said, “You have the high altar that draws you
to the back. You have two aisles, instead of one
main aisle, that take you to the back, and you
have chapels on the sides.”
Winkler’simprintsareeverywhere.“Ithinkabout
a lot of little things that you’re not supposed to
notice, but that you do feel,” he said. Case in point:
The prestige displays were updated around seven
years ago to move away from holes for each item,
contain in-shelf lighting and add three-inch shelf
strips to hold paper with extensive information.
The hallmarks of the prestige displays — they
have lush graphics, are 11 inches off the ground,
compared to four inches, and have four versus
five shelves as well as internal illumination — are
engulfing more of the store. “It’s at a height that’s
more accessible,” Winkler said. “I always do the
butt test. What woman in the world wants to shop
with her butt out. It’s that simple.”
Winkler has been enhancing the aesthetics of the
Ulta-branded areas within the stores and, perhaps
on a bigger scale, renovating fragrance presenta-
tions. By the end of the year, 75 stores should have
redone, more intimate fragrance areas. “Everything
should have a tester and clearly be brand driven
from the top. It didn’t have the tactile luxury and
experiential part that prestige had,” Winkler said.
Winkler has also reexamined salon concepts
during his tenure. The salon is no longer hidden
and walled off. It has a low glossy white wall, con-
cierge desk and chairs for waiting that demarcate
it, but customers can peer in. “The salon is set up
to be visible, to be animated as opposed to being
separate,” Winkler said.
Whether all services should be so open is up
for debate. Ulta customers are happy to have their
brows done right on the store floor. They are less
certain about skin-care services on the floor.
Going forward, Winkler’s challenge is to keep
the stores novel while handling a burgeoning fleet.
He said, “It’s much bigger, but I certainly would
never want to sacrifice the finesse that I think
we’re able to do because it means something to
her [the Ulta customer]. It really, really does.” ■
W
More views of the Ulta
Beauty store in Auburn.
ULTA STORE CONTINUED:
NYX Cosmetics started
with a two-foot spot on the
planogram at Ulta Beauty
— and now has grown to
a 14-foot space, noted
Brandyn Muegge, senior
vice president of sales for
the brand.
“Ulta has been an amaz-
ing partner,” Muegge said.
“They like to think outside
the box, which is perfect
for NYX. Together we have
created many unique pro-
grams that have helped
build the business to the
success it is today.”
The retailer sells the
brand’s 936 stockkeeping
units both in bricks-and-
mortar and on ulta.com.
Items range in price
from $4.50 to $25, noted
Muegge. In addition to
supporting their brands,
Muegge added, “they
have worked to build their
online presence and social
media, which is key to
communicating with the
beauty junkie.”
[Ulta has] “allowed us
to try new things, and
have used their reach
to promote the brand.”
She noted that NYX is
developing Ulta-exclu-
sive offerings for 2016,
although she declined to
discuss details.
— JULIE NAUGHTON
N Y X
Partner Since
2009
WWD MILESTONES
Key
Brands
ULTA'S
SILVER
STREAK
44 AUGUST 2015, No. 1 WWD.COM
Congratulations
on
25years
Here’s to dreaming
big and making
IT happen together!
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Generation Z is Blowing Up Fashion

  • 1. US $9.99 CANADA $13 UK £ 8 EUROPE € 11 JAPAN ¥1500 CHINA ¥80 HONG KONG HK100 INDIA 800 Fashion. Beauty. Business. AUG 2015 No.1 FLOU SEASON The caftan is making a comeback, with styles from simple to ornate. Fashion p. 8 SILVER STREAK Ulta, one of beauty’s hottest retailers, marks 25 years. In Focus p. 31 BEAUTY AND THE BAG Christian Louboutin launches lipsticks and expands handbags. Features p. 78 REDHotandATOMICGEN Z — WHICH IS SIZABLE, SOCIAL AND READY TO SPEND — IS BLOWING UP (AND SO ARE THE SMITH SIBLINGS). REDHOTANDATOMIC“Ijustfavorhappinesstodarkness.I’mmoresolarthanlunar.”CHRISTIANLOUBOUTIN
  • 2. Photograph by EMMAN MONTALVAN Lucky Blue Smith, one of the four Smith siblings who are models as well as bandmates in The Atomics. Ready or Not, Here They Come! 72 At nearly 25 percent of the population, Generation Z is sizable, social and has considerable spending power. Just don’t mistake them for Millennials. Eyes Wide Open 78 Christian Louboutin discusses his new luxe lipstick line and an expanded handbag offering as he keeps adding to his formidable footwear. The Features Edward Nardoza EDITOR IN CHIEF Pete Born EXECUTIVE EDITOR, BEAUTY Bridget Foley EXECUTIVE EDITOR James Fallon EDITOR Robb Rice GROUP DESIGN DIRECTOR John B. Fairchild 1927 — 2015 MANAGING EDITOR Peter Sadera MANAGING EDITOR, Dianne M. Pogoda FASHION/SPECIAL REPORTS EUROPEAN EDITOR Miles Socha DEPUTY MANAGING EDITOR Evan Clark NEWS DIRECTOR Lisa Lockwood DEPUTY EDITOR, DATA AND ANALYSIS Arthur Zaczkiewicz DEPUTY FASHION EDITOR Donna Heiderstadt SITTINGS DIRECTOR Alex Badia SENIOR EDITOR, RETAIL David Moin SENIOR EDITOR, SPECIAL PROJECTS, Arthur Friedman TEXTILES & TRADE SENIOR EDITORS, FINANCIAL Arnold J. Karr, Vicki M. Young ASSOCIATE EDITOR Lorna Koski BUREAU CHIEF, LONDON Samantha Conti BUREAU CHIEF, MILAN Luisa Zargani BUREAU CHIEF, LOS ANGELES Marcy Medina ASIAN EDITOR Amanda Kaiser BUREAU CHIEF, WASHINGTON Kristi Ellis SENIOR FASHION EDITOR Bobbi Queen ASSOCIATE EDITOR Jenny B. Fine SENIOR EDITOR, SPECIALTY RETAIL Sharon Edelson SENIOR PRESTIGE MARKET Julie Naughton BEAUTY EDITOR SENIOR FASHION FEATURES EDITOR Jessica Iredale SENIOR ACCESSORIES EDITOR Roxanne Robinson SENIOR MARKET EDITOR Mayte Allende EYE EDITORS Taylor Harris, Erik Maza MEN’S SENIOR EDITOR Jean E. Palmieri FASHION DIRECTOR Alex Badia ASSOCIATE FASHION EDITOR Luis Campuzano MEN’S REPORTER Aria Hughes MARKET EDITORS FINANCIAL NEWS AND ANALYSIS Debra Borchardt ACCESSORIES Lauren McCarthy, Misty White Sidell BEAUTY Molly Prior, Jayme Cyk DIGITAL Rachel Strugatz READY-TO-WEAR, Bobbi Queen FURS & INNERWEAR FASHION READY-TO-WEAR & SPORTSWEAR NEWS Rosemary Feitelberg MEDIA Alexandra Steigrad READY-TO-WEAR AND Kristi Garced SPORTSWEAR FASHION EYE Ally Betker, Leigh Nordstrom CORRESPONDENTS LONDON Nina Jones LONDON, EDITORIAL COORDINATOR Lorelei Marfil LOS ANGELES Khanh T.L. Tran LOS ANGELES Kari Hamanaka MILAN, FASHION AND NEWS Alessandra Turra NEW YORK, EDITORIAL ASSISTANTS William Cotto, Tara Bonet-Black, Kelsi Zimmerman NEW YORK, FASHION ASSISTANTS Andrew Shang, Ashley Davis, Kayana Cordwell, Milton Dixon, Emily Mercer PARIS, EUROPEAN BEAUTY EDITOR Jennifer Weil PARIS, SENIOR FASHION EDITOR Laurent Folcher PARIS, SENIOR BUSINESS NEWS EDITOR Joelle Diderich PARIS, GENERAL ASSIGNMENT Paulina Szmydke REPORTER, NEWS PARIS, EDITORIAL AND WEB ASSISTANT Anne-Aymone Gheerbrant WEB EDITOR, EUROPE Laure Guilbault SAN FRANCISCO, TECHNOLOGY Maghan McDowell DESIGN DEPARTMENT CREATIVE DIRECTOR Nick Mrozowski ART DIRECTOR Geraldson Chua SENIOR DESIGNER Christa Guerra DESIGNER Robyn Boehler DESIGNER Jewelyn Butron PHOTOGRAPHY PHOTO DIRECTOR Ash Barhamand ASSOCIATE PHOTO EDITOR Jenna Greene BOOKINGS AND PRODUCTION EDITOR Tricia VanGessel ASSISTANT PHOTO EDITOR Katrina Brown PHOTO STUDIO PHOTO STUDIO MANAGER Eileen Tsuji PHOTO STUDIO ASSISTANT Emily Taylor PHOTOGRAPHERS George Chinsee, Steve Eichner, Thomas Iannaccone COPYDESK COPY CHIEF Maureen Morrison-Shulas COPY EDITORS Danielle Gilliard, David Podgurski, Maxine Wally PREPRESS PRODUCTION DIGITAL IMAGING Alex Sharfman PREPRESS ASSEMBLY David Lee Chin WWD.COM SITE DIRECTOR Michelle Preli ASSISTANT ONLINE EDITOR Kristen Tauer WEB PRODUCER Robert Tutton PUBLIC RELATIONS PR COORDINATOR Christina Mastroianni
  • 3. Contents 6 Social Studies The best and worst in social media, what’s trending, whom to follow. 24 Eye • Parties The fourth-annual Hamptons Paddle & Party for Pink. • Arts & Culture Phillipa Soo soars as the first lady in “Hamilton.” • Report Card Kate Mara looks appropriately fantastic at a premiere of “Fantastic Four.” • City File Tuning In to Nashville. 31 WWD Milestones Silver Streak As it hits the 25-year mark, the red- hot Ulta Beauty reveals strategies for continued growth in its next quarter-century. 84 Bridget Foley’s Diary With the departure of Alexander Wang from Balenciaga, the “Who’s next?” watch begins anew. 86 Think Tank Marcie Merriman, executive director of business strategy and retail innovation at Ernst & Young, discusses how to win the hearts and minds of Generation Z. 88 Remember Singapore celebrates 50 years of independence with a string of events in New York . . . The Ritz reopens in Paris . . . Human Resources 90 Finale Letter Man: The alphabet soup that is the generation game surely didn’t start with Gen Z. Matt Dillon was one of the poster boys for Gen X. 4 AUGUST 2015, No. 1 WWD.COM Cotton jeans by Frame Denim. 22 Jean Splicing: Five brands that are injecting newness into the men’s denim market . . . M Briefs Retail 20 Jeffrey Kalinsky, whose Jeffrey flagship helped transform Manhattan’s Meatpacking District, marks its 25th anniversary . . . Retail Briefs Markets 18 True North: Michelle Lam is making data sexy, one bra at a time . . . Markets Briefs DEPARTMENTS “We started the women’s line because we felt like denim was no longer a fashion item, but for men it’s more about the concept of style rather than fashion.” — Jens Grede, Frame Denim Men’s Agenda, page 22 ON THE COVER: The Smiths, clockwise from top left: Starlie Cheyenne, Daisy Clementine, Pyper America, Lucky Blue. PHOTOGRAPHED BY EMMAN MONTALVAN Agenda Fashion 8 Flou Season: Caftans are as effortless as ever . . . Carolyn Murphy signs with Ugg . . . Model Call: Kenya Kinski-Jones . . . Fashion Briefs Paul Jowdy SENIOR VICE PRESIDENT, GROUP PUBLISHER ADVERTISING ASSOCIATE PUBLISHER Pamela Firestone INTERNATIONAL FASHION DIRECTOR, Renee Moskowitz RMM MEDIA EXECUTIVE DIRECTOR, MEN’S Brett Mitchell BEAUTY DIRECTOR Carly Gresh AMERICAN FASHION & LUXURY DIRECTOR Jennifer Petersen ACCOUNT EXECUTIVES Samantha Hartje Shannon Fitzgerald Alexandra Smith SENIOR CLIENT SERVICES MANAGER Joanna Block CLIENT SERVICES MANAGERS Annie Belfield Suzette Minetti Tina Schissel REGIONAL OFFICES/ INTERNATIONAL OFFICES WEST COAST DIRECTOR Jill Biren +1-323-965-7283 EUROPEAN ACCOUNT DIRECTOR, ITALY Giulia Squeri +39-02-722-33602 ACCOUNT DIRECTOR, ITALY Olga Kouznetsova +39-02-722-33603 SENIOR SALES COORDINATOR, ITALY Emanuela Altimani EUROPEAN DIRECTOR, FRANCE Valérie Deschamps-Wright +33-1-44-51-07-611 EUROPEAN SALES REPRESENTATIVE Marjorie Thomas +33-240-31-6541 ADVERTISING ASSISTANT, FRANCE Pascale Rajac DIGITAL/MARKETING/CREATIVE SERVICES MARKETING DIRECTOR Shannon Nobles CREATIVE DIRECTOR, MARKETING Cass Spencer DIGITAL MEDIA STRATEGIST Cassie Leventhal DIGITAL SALES PLANNER Amy Keiser AUDIENCE MARKETING VP & SENIOR EXECUTIVE DIRECTOR Ellen Dealy CONSUMER MARKETING DIRECTOR Peggy Pyle SENIOR DIRECTOR, DIGITAL MARKETING Janet Menaker & STRATEGIC DEVELOPMENT PLANNING & OPERATIONS DIRECTOR John Cross SENIOR DIRECTOR, Randi Segal INSTITUTIONAL SALES SENIOR ONLINE MANAGER Suzanne Berardi SENIOR MARKETING MANAGER Tamra Febesh ASSOCIATE MARKETING MANAGER Lauren Busch PRODUCTION PRODUCTION DIRECTOR Kevin Hurley PRODUCTION MANAGER Providence Rao SUMMITS & EVENTS VICE PRESIDENT, NEW VENTURES & GM Amber Mundinger EXECUTIVE EDITORIAL DIRECTOR Mary Ann Bacher DIRECTOR, ATTENDEE SALES Kim Mancuso SPONSORSHIP DIRECTOR Alexis Coyle DIRECTOR OF EXPERIENTIAL MARKETING Amelia Ewert FAIRCHILD PUBLISHING LLC Stephanie George PRESIDENT AND VICE CHAIRMAN EDITORIAL DIRECTOR OF Michael Atmore FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT FINANCE DIRECTOR Devon Beemer DIRECTOR OF EUROPEAN OPERATIONS Ron Wilson WWD AND FAIRCHILD PUBLISHING LLC ARE DIVISIONS OF PENSKE MEDIA CORPORATION Jay Penske CHAIRMAN & CEO VICE CHAIRMAN Gerry Byrne EXECUTIVE VICE PRESIDENT, George Grobar STRATEGY AND OPERATIONS EXECUTIVE VICE PRESIDENT, Paul Woolnough BUSINESS AFFAIRS SENIOR VICE PRESIDENT, Craig Perreault BUSINESS DEVELOPMENT GENERAL COUNSEL & Todd Greene SVP HUMAN RESOURCES VICE PRESIDENT, CREATIVE Nelson Anderson VICE PRESIDENT, FINANCE Ken Delacazar VICE PRESIDENT, HUMAN RESOURCES Tarik West VICE PRESIDENT, ENGINEERING Gabriel Koen DIRECTOR OF COMMUNICATIONS Lauren Gullion DIRECTOR OF OPERATIONS Joni Antonacci CONTROLLER Young Ko SENIOR PROGRAM MANAGERS Christina Yeoh, Derek Ramsey DIRECTOR, ADVERTISING OPERATIONS Eddie Ko DIRECTOR OF IT OPERATIONS Rick Gascon, & PRODUCTION Matt Williamson SENIOR IT ANALYSTS Carl Foner Aramis Miranda-Reyes IT ANALYSTS Don Gerber Fred Baez TO CONTACT WWD EDITORIAL +1-212-256-8130 ADVERTISING +1-212-256-8102 CIRCULATION +1-515-237-3650 philosophy: our best is yet to come. happy 25th join the conversation at facebook.com/philosophy 1% of all philosophy USA net product sales supports community-based mental health efforts. here’s to an even more miraculous future together.
  • 4. THE WEEK IN SOCIAL MEDIA Follow Us @WWD EDITED BY KRISTEN TAUER 6 AUGUST 2015, No. 1 WWD.COM CELEBRITY STYLE @salmahayek Actress, producer and beauty entrepreneur @petercopping Creative director of Oscar de la Renta FASHION FOCUSED Best Worst @alexanderwangny Fashion designer @parishilton Socialite “On set with Michael & fam. Miss him #TBT” @millybymichelle Fashion label Michelle Smith and her squad experienced an iconic New York moment — a walk over the Brooklyn Bridge. @bergdorfs Retailer “Sums up this steamy week, no?” Yes, but does anyone need a reminder? @ali_michael Model Glitter removal is an ugly task. Alexander Wang bade adieu to his Balenciaga role with class, down to the name strike-through on his stationery. @givenchyofficial Fashion label Let’s Follow “Happy birthday Riccardo Tisci! @riccardotisci17 in @interviewmag by #StevenKlein #Love #birthday #Celebration” Maybe next year Givenchy can gift Tisci a more flattering portrait for its social media post. Social Studies @1JessicaHart Literally have tears in my lap after reading the horrible details of this story. #CecilTheLion @SophiaBush Let’s use a terrible tragedy to make some good happen, shall we? We can change things #ScreamForCecil #CecilTheLion @TheMandyMoore This is heartbreaking in every possible way. What a loss. Trophy hunting is SHAMEFUL and disgusting. #CecilTheLion @MiaFarrow Animals are not trophies. Ever. #CecilTheLion The social media world rallied around the topic of illegal hunting after the death of #CecilTheLion in Zimbabwe. Trending DESIGN & DOODLES @josecabaco Brand creative director at Eddie Bauer CoppingphotographbyDrewAltizer;HayekbyAmyGraves L o ve H A P P Y Birthday ©2015 Maybelline LLC. C
  • 5. FashionAgenda EDITED BY DONNA HEIDERSTADT 8 AUGUST 2015, No. 1 WWD.COM Resort’s most effortless look, the caftan came in versions that draped, flared and billowed for day or night. Season Flou Photographs by FELIX WONG Styled by BOBBI QUEEN WWD.COM AUGUST 2015, No. 1 9 Adam Lippes’ silk georgette caftan. Necklace by WWake. OPPOSITE: Clockwise from top left: Camilla and Marc’s tiered silk wool dress with a necklace by WWake and shoes by Roberto Cavalli; Naeem Khan’s bead and sequin- embroidered nylon tulle caftan; Josie Natori Couture’s viscose and silk caftan with sandals by Theory and necklace by Pluma; and Rodebjer’s cotton and metallic yarn-dyed woven poncho.
  • 6. FashionAgenda 10 AUGUST 2015, No. 1 WWD.COM Halston Heritage’s polyester chiffon caftan. Necklace by Pluma. F L O U S E A S O N HAPPY 25TH , ULTA! DON’T DO ANYTHING WE WOULDN’T DO.
  • 7. FashionAgenda 12 AUGUST 2015, No. 1 WWD.COM Model: PAULINE H/THE SOCIETY Hair and Makeup by MIGUEL @ ARTIST NYC USING BOBBI BROWN COSMETICS Photo Assistant: HEATH LATTER Fashion Assistant: EMILY MERCER The Row’s silk poplin shirt and dress; WWake’s necklace. F L O U S E A S O N Congratulations 25 years of success! We are proud to be your partner and look forward to celebrating the next 25 years.
  • 8. FashionAgenda Ignis et vidunti blabor as et esenimentio odiae voluptatur sundebis dolum 14 AUGUST 2015, No. 1 WWD.COM Photograph by JENNA GREENE Carolyn Murphy talks about Ugg’s new limited- edition collection, and the woes of Instagram. By LAUREN MCCARTHY refined style. “The great thing about this collection is that it will appeal to a huge age range, no matter what their lifestyle.” Case in point: her 14-year-old daughter Dylan has already borrowed the pair that Murphy took from the set. She described the campaign shoot as “com- fortable” — a trait evident by the images, which depict the model lounging barefaced in oversize sweaters and cozy jackets. Coincidentally, her other high-profile gig for fall — the Oscar de la Renta ready-to-wear campaign — also called for the au naturel look. “Maybe that’s what happens when you are fortysomething — they say you don’t need makeup,” she said. Though she was discovered at the age of 15, Murphy is hesitant to let her daughter enter the modeling realm just yet. “She’s been approached a lot lately,” she said. “I told a magazine recently that I just don’t think she’s there, maturity-wise, so maybe come back to us in a few years. “My daughter is 14, and Kate [Moss] started when she was 14, and then Amber [Valletta] and Shalom [Harlow]. My parents were stricter — I had to wait until I finished high school, and then I had to attempt college, which I did for a year. On a personal note, I would stave it off as long as I could for Dylan. That being said, if [Steven] Meisel called tomorrow and said he wanted to do a portrait of her, I don’t think I would say no, because I’m very close with him, and there’s a certain level of trust there.” Murphy notes an added pressure for younger models these days, particularly in the age of Twit- ter and Instagram. “I get in trouble for not being that active [on social media],” she admitted. “I do not have a lot of followers.” The model has 122,000 followers on Instagram — not too shabby, but a far cry from the count of models du jour such as Karlie Kloss (2.9 million), Joan Smalls (1 million) or the reigning queen, Ken- dall Jenner (33 million), the latter two who also happen to share Murphy’s title as an Estée Lauder spokesmodel. “I find it painstaking at times to self-promote,” Murphy said. “It’s so different from the Nineties when it was very much about art and fashion and music and there was a real passion. Now it’s quite corporate, which is fine because at the end of the day we’re all creating and selling products — that’s our job. The self-promotion is what I have a problem with.” So no selfies? “I get embarrassed,” she said. “If I post one selfie a week, I’m doing good, because with brands, that’s one of the first things they ask. They want to know how many followers you have. I hear this a lot from the younger models, because it’s really all they know. For those of us who are a little bit older, we have to figure it out.” To her defense, Murphy has other things to worry about beyond finding the perfect iPhone lighting, including her position as women’s design director for Detroit-based leather goods and watch manufacturer Shinola. “My role at Shinola is something I would have never thought could happen,” she said. “Maybe I would have dreamt of having an actual job and a desk and a salary, which it has evolved into and is wonderful. Having a job where I actually have to think and sit on the creative side of things and have an opinion is really important.” ■ U gg is getting a new look — and a familiar face to go with it. For the first time in 37 years, the company is introducing a fresh take on its classic boot with a limited-edition collec- tion, dubbed “Classic Luxe,” and Carolyn Murphy as its face. Herself a California native, where the Deckers Brands-owned company was founded in 1978, Murphy is no stranger to its products. “I grew up with the brand, having lived in California for 10 years and surfing there, so we were given Ugg boots quite young,” she said. “My first pair was from my uncle when I was maybe eight, and they were the classic sandy-colored boots. My cousin and I both got a pair of my grandfather’s when he passed, which I know is a bit weird.” The new collection is a far cry from those old styles, though. The Italian-made boots feature a sleeker silhouette with a slimmer, more-contoured construction than the classic iteration. Materials include goat suede and Merino Twinface, with a leather, logo-embossed heel and the signature sheepskin insole. The collection comes in two styles: the Abree, a sister to the traditional boot with a new zipper closure for a snugger fit, and the Karisa, an ankle boot done with tasseled fringe detailing. The Abree, which comes in tall and short heights and will retail for $295 and $250, respectively, comes in colors that include espresso, aubergine and rust, while the Karisa comes in tan and black and retails for $245. The collection will hit select North American Ugg stores, and the brand’s Web site, beginning on Aug. 6. Murphy praised the new collection’s more “Maybe that’s what happens when you are fortysomething — they say you don’t need makeup.” Carolyn Murphy Murphy’s Ugg Romance sourcing at magic opens august 16 register now at attendmagic.comLas Vegas & Mandalay Bay Convention Centers Findithere.AUGUST 17–19, 2015 Women’s. Footwear. Young Men’s.Men’s.
  • 9. FashionAgenda Photograph by MATT TAMMARO16 AUGUST 2015, No. 1 WWD.COM “Obviously, to me, they’re just my parents,” said Kenya Kinski-Jones on a recent afternoon, having touched down in Brooklyn after spending a weekend in upstate New York with her boyfriend, actor Will Peltz. The 22-year-old Los Angeles-based model and animal activist — who graduated in May from Loyola Marymount University, where she majored in English — was talking about her father, music producer Quincy Jones, and her mother, actress and former model, Nastassja Kinski. “I grew up not at all in the spotlight. I think my parents really kept things down-to-earth for me.” In addition to landing editorials in Vogue Spain, Teen Vogue and Harper’s Bazaar, Kinski-Jones is also one of the faces of the buzzy new Calvin Klein Jeans campaign. — KRISTI GARCED MODEL CALL: KENYA KINSKI- JONES Height: 5’8” Hair: Blonde Eyes: Brown Measurements: 32, 24, 36 Agency: Ford Models Hometown: Los Angeles Instagram: @lovekenya How did you start modeling? My mom was actually the one who got me into it the most. Around age 14 or 15, we went to an acting and modeling agency. Before that, I had never really thought about it. I guess my mom had known Bruce Weber previously, and she took me to a shoot. I was still kind of shy and not sure about it. He snapped some photos and a couple of months later, we did a shoot together for Vogue Spain. It was a really amazing experience. Do your parents give good career advice? My dad, whether it’s school or my career, is always like, “Put in the work.” My grandpa used to say, “If a task has once begun, never leave it till it’s done.” Growing up, when I was in my awkward stages or shy, my mom would always say, “Go do it! Go try it!” She always wants me to jump into things and not be scared. It’s better to try than not to try at all. The new CK Jeans cam- paign is getting some buzz for its au courant themes: dating apps and sexting. What was it like to shoot? This is the generation that uses Instagram and texts most often, so naturally, certain aspects of sexu- ality and dating are going to somehow fall into that. Being able to shoot it with my boyfriend, Will, made everything so much more comfortable. There was never any awkwardness that we had to break through. It felt like we were able to push the limits because our relation- ship is real. Apart from your modeling career, how do you plan to apply your studies? I think in my dream world, I’d like to combine different things — maybe write a column for a magazine and incorporate that with my passion for animal advocacy. The good thing with writing is that you can incorporate it into different things. You typically spend your summers in New York. What do you like to do here? L.A. is so chill, but here in New York, you can walk out on the street and anything can hap- pen. Just walking around the city is so fun and exciting for me. That probably sounds so “L.A.”-like, “Oh, what an idiot, she likes to walk around the streets” — but it’s just really exciting. FashionBriefs WWD.COM AUGUST 2015, No. 1 17 ChartbyCarlosMonteiro;MoschinophotographsbyThomasIannaccone;GurungandWangbyGeorgeChinsee QUOTED “Demi [Moore] started tweeting about my brand, and I joined Twitter to say ‘thank you’ to her. I had never tweeted, and I was really not into it. But I immediately got 500 followers when she responded back to me. This was about five or six years back, when the majority of the fashion industry was not open to social media….The minute that happened, I was like, ‘OK, there’s something here.’” Prabal Gurung, speaking to a trio of young Singapore- based designers in New York for the CFDA’s Fashion Futures program. Kate on Canvas Kate Moss has a new title: Our Lady of Pop. That’s what Nuyorican artist Rodríguez Calero — whose works combine elements of hip-hop street culture and religious iconography — called this surrealist collage of the model that is among her 99 works featured in the recently opened exhibition, “Rodríquez Calero: Urban Martyrs and Latter-Day Santos,” at El Museo del Barrio in New York City. The exhibition, part of the museum’s Women’s Series Retrospectives, runs through Nov. 17. — MAYTE ALLENDE MILAN MODA Benvenuto Mandarin Oriental Milan welcomed its newest luxury hotel last week with the opening of the Mandarin Oriental Milan. Located on Via Andegari near the city’s fashionable Brera district, the property has 73 rooms and 31 suites and a 9,867-square-foot spa. Featuring contemporary Italian design by Antonio Citterio Patricia Viel Interiors, Mandarin Oriental’s 45th hotel worldwide has a sleek, black-and-white Mandarin Bar with an adjoining court- yard, and Seta, a fine-dining restaurant helmed by chef Antonio Guida. Both are open to the public. — LUCIE JANEK HEADLINER Wang’s Newsy Week When one door closes, another one opens. That could have been the mantra this week for Alexander Wang. Within the course of just a few days, the New York-based designer made headlines for both his split with Paris fashion label Balenciaga — which he has designed since late 2012 — and for the debut of his largest store, a 6,460-square- foot flagship on London’s Albemarle Street. Reports also simultaneously surfaced that Wang had found an investor for his 10-year-old, $100 million eponymous business. Balenciaga’s spring 2016 collection, to be shown on Oct. 2 during Paris Fashion Week, will be Wang’s last. Both the designer and Balen- ciaga’s parent company Kering confirmed this last Friday. The London store, the 25th in the designer’s portfolio, spans three floors and was designed by Belgian archi- tect and designer Vincent Van Duysen to fuse the luxurious with the industrial. “London is on a whole differ- ent wavelength, and I think the shopping here actually trumps New York,” said the designer. As for speculation that Wang is about to take on an investor, market sources said he is negotiating with General Atlantic, the New York-based growth equity firm headed by chief execu- tive officer William Ford. — LISA LOCKWOOD, MILES SOCHA AND JOELLE DIDERICH THE CHART Luxury’s Summer Slump The dollar’s continued strength combined with mixed sales results, especially in the accessories sector, resulted in generally lackluster performance among luxury stocks. *As of close of market on July 31, 2015 +14.79 TEDI Ted Baker plc 50.24 RMS Hermès International SCA 387.52 +2.43 KER Kering 191.98 +3.63 BCm Brunello Cucineli SpA 18.76 +0.63 SFERm Salvatore Ferragamo 31.38 +0.52 MC LVMH Moët Hennessy Louis Vuitton 186.63 +6.17 Symbol Name Close (USD) 3 Month Change (USD) -4.12 CFR Richemont 86.01 -15.56 1913 Prada SpA 4.60 -6.11 BRBYI Burberry Group plc 25.15 -32.12 KORS Michael Kors Holdings Ltd. 41.99 -2.95 BOSS Hugo Boss AG 120.04 THINKING BIG Moschino Goes Supersized in SoHo The second Moschino store under the daffy creative direction of Jeremy Scott opened Monday at 73 Wooster Street in SoHo in New York — the first opened in Los Angeles earlier this year. The designer, known for his cartoonish vision, was not interested in a traditional retail concept for the 3,500-square-foot space, designed with architect Ida Sborgia. “I wanted very high ceilings and an open loft space so I can create large installations and fixtures and have it rotat- ing, like a gallery would if you had sculptures,” Scott said. The sculptures currently displaying Moschino’s pre-fall collection include a pair of giant pleather high-heel shoes, one with shelves to display shoes and one with a seat so customers can sit on the shoe while trying on shoes. Clothes are displayed on hangers hung on XXL hangers. There are also enormous motorcycle jacket-inspired bags and shopping bags with shelves cut out in the back to house the handbag collection, and a larger-than-life mannequin, whose head almost hits the ceiling, at the back of the store. Aeffe USA president Michelle Stein likened the decor to the movie “Big.” “I just wanted it to be very fun, playful and exciting,” Scott said. “It’s something to put a smile on your face and unexpected. You want to have your picture taken in it.” — JESSICA IREDALE
  • 10. Photograph by BYLINE_NAME18 AUGUST 2015, No. 1 WWD.COM XxxxxxxxXxxxx MarketsAgenda EDITED BY ARTHUR ZACZKIEWICZ B uying red lingerie? Chances are, you’re a cat person. And that “lace and sexy” trend? Sure, it’s a thing — but that same woman likely bought a nude bra the day before. At least, that’s according to what Michelle Lam fondly refers to as her “Rosetta Stone of bras,” created from 60 million data points gathered from several million women over the past three years. She’s not only able to confirm trends like ath-lei- sure, she know who wants it — and why. As the founder of intimates e-tailer True & Co., Lam is working to dramatically change the way women shop for bras. Starting with a two-min- ute fit quiz on Trueandco.com, customers are matched with a bra shape (rather than size), according to its “TrueSpectrum.” This guides the initial recommendations and familiarizes the cus- tomer with providing personal information. From there, the questions go more in-depth and the recommendations more personal, as customers browse, try on at home and become accustomed to a culture of constant feedback. And Lam has found that women want to share even more details, whether it’s through a quiz after a return or an e-mailed quiz tied to Valentine’s Day. The inspiration behind the fit quiz was to avoid the often uncomfortable fitting room experience. The result has Silicon Valley investors excited about the splash this could make in the estimated $10.9 billion U.S. intimates market — more than $6 billion of which was spent last year on bras alone, according to The NPD Group. “The intimates market in the U.S. is dominated by one dominant brick-and-mortar player, with a specific look for a certain type of customer,” said True & Co. investor and Cowboy Ventures founder Aileen Lee. “No one had figured out how to make [bra-shopping] a better experience, but she [Lam] has the quiz and the data-driven approach.” At a time when the Harvard Business Review is calling “data scientist” the sexiest job of the 21st century and signing into a Web site via Facebook Michelle Lam makes data sexy, one bra at a time. True North credentials has become de rigueur, “data” is a big-ticket buzzword. But utilizing that mysterious treasure trove? That often remains more elusive. Not so for Lam, whose approach to matching women with well-fitting intimates has convinced investors — mostly male, aside from Lee — to contribute $15 million to True & Co. since 2012. As an investor, Lee said, she’s looking for very large markets, entrepreneurs who have a personal connection to the opportunity of the problem, and a new approach that would make the experi- ence better for customers. “Michelle,” she said, “has all those things.” True & Co.’s approach has obvious applications beyond the bra, and it is slowly pushing into pant- ies and loungewear. (It recently sent out a “cheek guide” to customers — i.e., for “the other 3-D part of a woman’s body.”) “Women are saying, ‘Wow, there is a new and different way and the lingerie industry is starting to listen to me,’” Lam said while sitting in True & Co.’s sunny San Francisco SoMa district headquar- ters. “We’re pushing further into ‘emotional fit’ territory.” This means that, in addition to making recommendations based on her body shape, the algorithm can help gauge what a woman wants to see when she looks in the mirror. (For example, four out of five women don’t want a push-up bra.) “And our consumer research,” Lam said, “tells us that they are looking for a different definition of ‘sexy.’” Lam is a different definition of “data geek.” The 36-year-old Toronto native cut her teeth at The Boston Consulting Group, which worked with Victoria’s Secret on research that led to the Body by Victoria bra and the development of the “Women are saying, ‘Wow, there is a new and different way and the lingerie industry is starting to listen to me.’” Michelle Lam, True & Co. founder By MAGHAN MCDOWELL Photograph by WINNI WINTERMEYER Angels. Later, she worked in due diligence at Bain Capital Ventures, where, in 2008, she crunched the numbers to confirm LinkedIn’s groundbreak- ing $1 billion valuation. “I remember being afraid that I was going to lose my job, because no one had ever done that before,” Lam said. When she began working on True & Co., she started with fit-tests in her home, where she would gather feedback on taste and fit from friends and family using a pen-and-paper quiz modeled after Cosmo quizzes she took in high school. Eventually, she needed a way to listen to the customer in a scalable way — which means data, and the online feedback loop she uses today. “The goal was always delivering a beautiful product that makes her body look amazing and makes her feel amazing,” Lam said. “A lot of companies who are trying to do things with data don’t have such a strong goal in mind.” In October 2013, Lam launched the True & Co. brand of lingerie, informed by the cues that cus- tomers had provided. Her feedback loop means she is able to produce more efficiently. Thanks to customer response, she recently identified a potential manufacturing defect within 48 hours, and confirmed it after two weeks — even though the product had passed inspection. She’s also found the “sweet spot” is making each silhouette in eight to 12 sizes, rather than the larger offering more common for department stores, since “not everyone can wear a balconette.” S ince launching, the house brand has grown at “multiples of percentages” of the business, and has slowly started expanding into loungewear, with plans to expand its assortment into premium lines. Most bras are $44 to $64, panties are $16 to $22; a pajama set is $68. Although Lam calls the True & Co. algorithm agnostic — meaning that it recommends both True & Co. products in addi- tion to other brands available on the site — this is encouraging. (Of the 50 or so vendors it’s tested, current offerings include recognizable names like Natori and Calvin Klein, and others that are harder to find Stateside, like French line Princesse Tam Tam and Dutch brand Love Stories.) It also proved to investors that women can, actually, self-report what they want. She declines to provide revenue, but says that business has doubled already this year after strong growth in 2014. In the Bay Area, investors are used to fielding terms like “customer-use case” and “high-margin business.” Lam is comfortable with these. But she’s equally as fluent in terms like “chicken wings” and “busting out” (which are unfavorable symptoms of an ill-fitting bra, to the uninitiated). Thus, she is often asked what it’s like to talk about bras with “mainly dude investment committees,” but she credits her history for giving her confi- dence to go talk about underwear. “I have been in the business before, so I know what it means to articulate in a way that investors can get behind.” After the most recent round of funding, Lam says she took a step back to decide what “true north” was for the company. The result was a mis- sion to harness millions of pieces of information to create or provide products that celebrate her customers’ unique body shape and taste. This is just one of the projects on the horizon. “As a woman who has been through many career incarnations, and has been on my own personal journey to find myself, that’s a really lib- erating moment when you know who you are and what you want and what will make you happy,” Lam said. “It’s more than just, like, lifting up your boobs, right? It’s a whole outlook shift.” ■ MarketBriefs Los Angeles-based designer Kevan Hall, whose gowns have been worn by Michelle Obama, Allison Jan- ney and Vanessa Williams, is moving from the runway to the fairway with a ladies’ golfwear line called Kevan Hall Sport. Hall said he listened to his clients, who told him the market lacked luxury looks for the links. One of his long- time New Orleans clients, Beth DePass, also became his partner and design collaborator in the line. “This line is for women with sophisticated taste who don’t want to run around in yoga pants during the day,” he said. Hall fashioned technical fabrics with mois- ture-wicking, antibacterial and UV-protection prop- erties into tops, bottoms and dresses that borrow from some of his elegant eveningwear silhouettes such as a ruffled skort and a scuba-style dress. “Women who are in shape want to show off their bod- ies, not look like one of the guys,” Hall said. Thoughtful design details include racer-backs and armholes that don’t create “back fat” and pockets positioned to avoid a bulky line when golf balls or gloves are placed inside. The clothes also have enough give to allow women to freely swing a golf club. The Made in L.A. line fea- tures mostly bright colors and heat-transferred original prints. Wholesale prices range from $35 to $50 for tops, $45 to $55 for bottoms and $70 to $95 for dresses. While Hall is launching the line in the boutiques that already sell his eveningwear, he said it is also gaining trac- tion for tennis and daywear, and he plans to expand into yoga, cycling and swimwear. “I’m taking care of women from morning to evening,” he said. — MARCY MEDINA QUOTED “Designing is something that we’ve always wanted to do...to kind of step back and put the looks together and be a part of the shoot when it’s a different model modeling it and actually being the creative person behind it.” Kendall Jenner, on launch of new line with sister Kylie Fruit of the Loom is relaunching and expanding its plus-size underwear line Fit for Me. Although the line has been out since 2001, Mark Hartman, Fruit of the Loom’s vice president of marketing, said customers didn’t know it existed because of the packaging, which prominently featured the Fruit of the Loom logo with the Fit for Me messaging beneath it. “Many plus-size women said they were buying Fruit of the Loom, but they had never heard of Fit for Me. They just thought it was a tag line,” Hartman said. “By us hiding that Fit for Me portion, we realized that we weren’t doing our job in telling them the product is designed for them.” Hartman said Fruit of the Loom reversed the hierarchy and placed the Fit for Me messaging on top, made it larger and placed the Fruit of the Loom logo underneath. The brand also added two additional models to the packaging and removed the word plus size. “Signage isn’t as available as it used to be so our packaging has to do all of that work. Customers want to have somebody on that package that represents their body type. They also don’t prefer the word plus at all,” Hartman explained. The collection, which starts at a panty size nine and goes up to a size 13, includes a brief, boxer brief and a high-cut style made from either cotton, microfiber, or a cotton- polyester blend. The underwear is sold in packs of five and retails from $9.99 to $12.44. The new product began shipping to big-box retailers including Wal- Mart and Kmart earlier this year, but for fall Fruit of the Loom is introducing a microfiber layering tank and a breathable underwear program made from cotton micromesh. According to Hartman, 60 percent of plus-size underwear purchases are made within big-box stores, but many plus-size shoppers aren’t happy with the in-store experience. This is primarily due to the separation of plus-size bras and underwear. “Retailers have a lot of opportunities to speak to this consumer. This shopper would love for things to be more synergistic. Now they have to search for their underwear and bras,” Hartman told WWD. — ARIA HUGHES Curve Appeal With Fit for Me Fruit of the Loom is breathing new life into its new brand. WWD.COM AUGUST 2015, No. 1 19 ACTIVEWEAR Kevan Hall Tees Off
  • 11. Photograph by RYAN PFLUGER20 AUGUST 2015, No. 1 WWD.COM RetailAgenda EDITED BY EVAN CLARK A nd they said it would never last. In 1999, when Jeffrey Kalin- sky opened his Jeffrey flag- ship on a desolate stretch of West 14th Street in Manhattan’s Meatpacking District, he faced a Greek chorus of naysayers who warned customers would never venture to the far west environ, much less risk getting a Christian Louboutin or Clergerie heel caught in the cobblestone streets. “People thought I was out of my mind,” Kalinsky said. “This was the wild, wild west. I didn’t care that there was nothing down here. I loved the street and the river.” In July, Kalinsky celebrated his 25th year in business — his original store, which opened in 1990, still thrives in Atlanta. Jeffrey New York has been a constant presence in the Meatpacking District, even as designers such as Alexander McQueen and Stella McCartney came and went, replaced by brands such as Apple and Levi’s. Kalinsky’s real estate decision seems prescient now that the High Line and Whitney Museum of American Art have sprouted up around the 10,000-square-foot store and the neighbor- hood seems poised for another boom. But rents are rising so precipitously that Kalin- sky himself may be priced out of the neighborhood when his lease expires in April 2019. “I’m starting to look at real estate,” he admitted. “We had a great meeting with the landlord. I think we’ll able to reach an agreement, but it’s too early to say.” At Kalinsky’s disco-themed 25th anniversary bash last month hosted by Ladyfag and DJ’d by Honey Dijon, Nordstrom was commemorating a milestone of its own — 10 years of owning the Jeffrey business. The event, held in the store, fea- tured buff bare-chested bartenders, female greet- ers sewn into skintight sequined disco dresses and the requisite drag queen, voguing for the crowd. By now, the buttoned-up Seattle clan have become connoisseurs of the downtown scene, thanks to Kalinsky. When Nordstrom purchased its majority stake in the New York and Atlanta stores in 2005 for an estimated $40 million to $50 million, Kalinsky seemed a tad intimidating. “There was all this anticipation based on his reputation,” said Pete Nordstrom, president of Nordstrom Inc. merchandising. “Jeffrey has a big reputation in our industry. What struck me most is that the store didn’t have all the trappings that a lot of luxury designer stores have, the opulence and museumlike exclusivity. It was a very inclu- sive place. “He’s an understated guy,” added Nordstrom. “He’s not avant-garde. He’s a pretty traditional guy. He loves beautiful things and cares a lot about quality and timeless characteristics.” Kalinsky grew up at Bob Ellis, the shoe business founded by his father, Morris. It is still the preem- inent shoe store in Charleston, S.C., and is now Jeffrey Kalinsky takes stock of his specialty business and working with Nordstrom. By SHARON EDELSON Jeffrey at 25 “He’s not avant-garde. He’s a pretty traditional guy.” Pete Nordstrom, Nordstrom, on Jeffrey Kalinsky. operated by his brother Barry. After working as a shoe buyer at Barneys New York, Kalinsky decided he wanted to open his own store in Atlanta. “I wanted to live in a city where I would be comfort- able as a young gay man,” he said. “Plus, there were no good women’s stores in Atlanta. My father reluctantly agreed to be my partner.” Bob Ellis opened at the upscale Phipps Plaza in 1990. Running the store “was a magical time,” Kalinsky recalled. “Oh, to be 28 and have your first baby store.” The 4,000-square-foot unit did $2.5 million in 1990. “In a few years we were easily doing $5 million annually,” he said. He made his move into ready-to-wear, renam- ing the store Jeffrey, opening a Jil Sander shop, and selling Prada, Dries Van Noten, Ann Demeulemeester and Richard Tyler Couture. “I wanted to dress these women,” Kalinsky said. “I didn’t like the way they were dressed.” Then came the move into Manhattan and Kalinsky was playing on an even bigger field. He now carries the likes of Chanel, Dior, Saint Lau- rent, Céline, Van Noten and Sacai, among others, bolstering those with collaborations, such as the capsule collection that Carolina Herrera is doing for the store that will bow in February. Then there is Kalinsky’s charity Jeffrey Fashion Cares, which he founded in 2001 and calls “a labor of love.” Yearly blowout events in New York and Atlanta — many with barely clad male models — attract 600 and 800 guests, respectively, and have raised $5 million for organizations that support LGBT civil rights, LGBT youth education, HIV pre- vention and breast cancer research, among others. Nordstrom in 2007 upped its stake in Jeffrey to 90 percent. As part of the original deal, Kalinsky took on the job of raising Nordstrom’s designer profile. “I helped to plant the designer flag for their business,” he said. “I was able to strategize and work across all categories and make a lot of prog- ress. I helped evolve the business to a different level. I played a role in establishing relationships with Dries Van Noten, Balenciaga, Saint Laurent, Gucci, Prada and Céline.” Nordstrom said its designer business under Kalinsky’s leadership grew by triple digits on a percentage basis. “Jeffrey had a skill set and talent that we didn’t necessarily have,” said Pete Nordstrom. “It’s help- ful for us to be aligned with someone who brings a level of credibility. “To get the best out of Jeffrey is to let him focus on the things he likes to do,” Nordstrom added. “We own [his] business and he runs it. Anything else we get on top of that is like frosting on the cake. We’d be open to additional Jeffrey stores. For Jeffrey, they are like children. He feels accountable for them and we don’t want to dilute that.” The department store retailer is leaning on Kalinsky for its own New York flagship opening on 57th Street in 2018. “He’s an important contribu- tor,” Nordstrom said. “He’s got a great perspective as a person who created a business in New York. We’re coming in and trying to create something. We want him to be engaged in the whole thought process of what the store can be. “I wish we could leverage him in a bigger way,” Nordstrom said. “He’s a talented guy. We would consider opening a Jeffrey boutique inside the New York store. We’ve done some things with the Jeffrey label before and we may do more. There’s an ongoing discussion based on the things he’s interested in. The door is completely wide open. We have a hole in the ground” and the company needs to fill it. As for the association with Kalinsky, “It’s one of the best decisions we’ve ever made,” Nordstrom said. “It’s paid big dividends for us.” ■ RetailBriefs QUOTED “The fact that Disney parks are incredibly strong speaks to what customers are spending on — experience and being entertained — and that’s what stores are not providing to the same degree.” Michael Gould, former Bloomingdale’s chairman As kids prepare to head back to school and back to college, store executives are more focused on how to get them back to retail. As the season begins to peak, the numbers haven’t looked good. A survey of 8,500 house- holds taken late last month by Brand Keys indicated a nearly flat spending trend with purchases dropping to $650 from $652 a year ago. The slight drop follows a lowered outlook on spend- ing from the National Retail Federation. There’s been little to suggest an uptick in sales activity in recent weeks. In the final full week of July, chain-store sales fell 0.2 percent from the prior week, with furniture stores continuing to prosper while department and apparel store volumes remained weak, according to The Retail Economist LLC and Goldman Sachs. Retail Economist chief economist and principal Michael Niemira had earlier predicted a 2.1 percent increase in b-t-s sales, to $42.5 million, and a 2 percent growth rate for apparel, to $23.6 billion. He expects upcoming tax holidays to give sales a boost, while August, with a 1.8 percent increase, would lag both July and September in sales growth. But there’s a “late-to- start, late-to-finish” element behind much of the com- plex sales-tracking going on as economists and analysts view the season, increasingly characterized by procrastination, confi- dence among consumers that promotions will be in place when they want them and a growing tendency to separate the items that their families need from those that they want. Whatever the outcome, there’s little doubt that August, the month when many students begin to return to classes, will be pivotal in whether b-t-s is a disappointment or the sur- prise that so many retailers have been waiting for. As The NPD Group recently said, it so happens the final week of summer is not only the month when the majority of shoppers finish their b-t-s shopping excursions, but also the month when the majority begin them. Less than 10 percent start or finish b-t-s shopping in June, while 31 percent start and 12 percent finish in July. And a trend with which retailers will have to cope as they attempt to boost their figures for the third quarters of the fiscal year: 6 percent plan to start b-t-s in September, and more than three times that num- ber, 19 percent, will finish during the month. But while August’s greater importance grows, those watching the market aren’t seeing encouraging signs, even as they remain open to them. Craig John- son, president of Customer Growth Partners, said most mall-based and apparel-fo- cused retailers were ending the second quarter “on a downbeat” with “footfall… weak almost universally across the mall.” “The only semi-good news is that some comps are ‘less negative,’” he said. — ARNOLD J. KARR MILLENNIAL SQUEEZE Student Debt Piling On In some ways Millen- nials have it all, from the largest numbers of any generation in U.S. history — 83.1 million, according to the U.S. Census — to historic levels of student debt. The older half of that group is leading the comeback in denim sales and the boom in hosiery consumption. As the Pew Research Center reported last week, they’re more likely to be living with their parents but are seeing their job prospects improve. But for the younger half of the 18-to-34 year-old demographic, navigating into and through adult- hood remains a challenge. According to the Federal Reserve, student debt levels for 25-year-olds nearly doubled between 2003 and 2013 and the median income of families headed by someone under 35 stood at just $35,300 in 2013. DOUR OUTLOOK Back to School WWD.COM AUGUST 2015, No. 1 21 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $20,926 $15,912 $10,649 Source: Federal Reserve; Bureau of Labor Statistics Mean Student Loan Balance for 25-Year-Olds
  • 12. Agenda EDITED BY JEAN E. PALMIERI AND ALEX BADIA 22 AUGUST 2015, No. 1 WWD.COM W ith the rise of the men’s ath-lei- sure trend — the NPD Group said U.S. sales of activewear were up 6 percent in the first quarter of this year — the common narra- tive is that denim is what’s taking the hit.   While that’s true to a certain extent — NPD also found sales within the men’s denim category were down by 2 percent from last year in the same time frame — it hasn’t stopped brands from entering the market.  “It’s never really a good time to launch a denim brand, but we just felt like consumers are always looking for something new,” said Casey Egan, who cofounded Deconstructed Indigo Garments, a men’s and women’s denim line, in 2014. “No mat- ter what trend comes through, denim will always have a place. We just want to challenge people to think differently about the way they wear it.” Egan’s line joins four other men’s denim brands that are hoping to refresh the category by offering interesting washes, special details and new silhou- ettes that move beyond the skinny jean. ¬ Ron Herman, who owns Ron Herman stores in California and Japan, admits the denim category is crowded. “Of course the market is saturated, but there’s always room for good product,” he said. That’s why Herman launched his own line of jeans in 2012. The collection was originally designed by denim veteran Simon Miller, but now Brian Kaneda, who also serves as a buyer for Ron Herman boutiques, designs the assortment. Herman told WWD that he initially only had plans to sell it in his stores, but the line has since been picked up by retailers including Mr Porter and Le Bon Marche, which installed a Ron Herman pop-up late last year. The California-inspired collection, which retails from $270 to $1,200, is made in Los Angeles from Japanese fabrics. Each season the fits remain the same – a tapered, slim and straight leg – but washes and details provide a point of difference. Classic five-pocket straight-leg styles made from Japanese selvedge fabric are updated with intricate stitched patchwork detailing and a slim style is coated with clear resin to create a 3-D effect. “We have to inspire customers to shop,” said Herman. “But I’m not trying to make a fashion statement.” These five brands are injecting newness into the men’s denim market. By ARIA HUGHES RON HERMAN Photographs by GREG VAUGHAN Model: CHRIS BUNN at Wilhelmina Styled by ALEX BADIA Fashion Assistant: LUIS CAMPUZANO Jean Splicing WWD.COM AUGUST 2015, No. 1 23 Briefs ¬ Frame has created buzz in the women’s market with fashion-driven pieces and celebrity collaborations with model Karlie Kloss and photogra- phers Inez van Lamsweerde & Vinoodh Matadin. Now, founders Jens Grede and Erik Torstensson want to create a similar excitement in men’s wear. “We started the women’s line because we felt like denim was no longer a fashion item, but for men it’s more about the concept of style rather than fashion,” said Grede, who added that men’s product currently makes up 5 percent of the business, a figure he expects to grow to 30 percent over the next couple of years. “We’re not pushing the envelope on classic men’s styles. We are just making small tweaks that modernize the fit.” The men’s line launched in 2014 with one style and 11 washes. Now the collection, which retails from $200 to $220, features two silhouettes in a variety of washes. Grede said the brand will introduce denim jackets, shirts, cashmere sweaters and T-shirts in later seasons. To further push its vision for men’s, Frame recently tapped actor Matt Dillon to front the brand’s first celebrity men’s campaign. ¬ Creative directors Jake Sargent and Daniel Corrigan, who were nom- inated for a CFDA/Vogue Fashion Fund last year, joined Simon Miller’s eponymous label in 2011. Up until now the designers, who are inspired by Japanese textiles and indigo dyeing, have focused on washes, but for spring 2016 they will introduce a new fit for the first time. “We have a narrow and slim fit, but we are working on something wider,” said Sargent. “It’s a much more fashion-forward silhouette.” The current collection, which is made in Los Angeles, includes T-shirts, outerwear and shirts along with washed Japanese selvedge denim that’s tinted or distressed. The line is priced from $250 to $350 and is sold at retail- ers including Steven Alan and Barneys. Corrigan said that its customers aren’t looking for trendy items, but rather pieces with strong details. “Men across the board are much more driven by product details and product knowl- edge,” said Corrigan.“Our best-selling product tends to be our most special product. Whenever we try to strip things down, it doesn’t work.” ¬ Deconstructed Indigo Garments cofounder Casey Egan, who launched the Melbourne-based brand with actress Ella Rose Foord in 2014, thought there was a hole in the men’s market for heritage denim with innova- tive tailoring. The designer, who previously worked at Levi’s in the U.S. and Wrangler in Australia, also noticed men making their own changes to denim. “They were tailoring them and changing them and working on a new leg or cutting the leg in,” said Egan. “We wanted to offer those shapes in premium fabrics.” The brand, which also produces women’s, manu- facturers its jeans in China using Japanese fabrics. Egan plays with proportion and offers silhouettes such as a drop-crotch tapered style and a cropped, slightly flared model. “I personally want to wear looser garments and the cropped jean looks great with a boot,” said Egan. The line,which retails from $190 to $290,is sold on the brand’s e-commerce site and features 10 sku’s across women’s and men’s,but Egan plans to double that with more tops and knits next season. ¬ This New York-based brand started with women’s and men’s in 2009, but took a short hiatus from the men’s collection before reentering the cat- egory last year. R13‘s designer, who prefers to remain anonymous, admitted that he was initially hesitant about moving back into men’s, but said the current mood within the market swayed him. “I just felt like guys all kind want the same thing and they look like clones of each other,” said the designer. “But men’s wear is shifting very fast and we’ve launched at the right time when guys want something different. We are looking at this as a growth vehicle.” R13 jeans, which are sold on the brand’s recently launched e-commerce site along with retailers including Barneys New York and TheCorner.com, are designed in New York City and made in Italy from Japanese fabrics. The line, which retails from $350 to $450, includes new denim silhouettes such as the Boy fit, which features a tapered leg with a drop crotch, and the Skate, which has a fuller thigh. “Men’s wear will slowly shift,” said the designer, “and these pant shapes will become a regular thing.” CAPSULE COLLECTION Modern History British heritage label Wol- sey, known for its woolens and outerwear, marks its 260th anniversary this year and the label’s creative direc- tor Chris Lee has gone back to the company’s long-es- tablished roots to create a capsule collection to mark the milestone. The Made in the U.K. collec- tion launches in September, and comprises two coats, a sweater and accessories that take their cues from Wolsey’s archives. All the designs are made at Wolsey’s factory in Leicester, England. TEXTILES Reda Mill Celebrates 150 Years Reda has been produc- ing luxury fabrics in Biella, Italy, since 1865. Now the company is on a worldwide journey to mark its 150th anniversary. That journey started with an event in Milan in February, followed by one in London and then New York. It will continue to Berlin in November. “We thought we would go where our customer is,” said Ercole Botto Poala, chief executive officer, at the New York event. “So we went to our most important markets to celebrate.” To commemorate the milestone, Reda partnered with The Woolmark Company on a multisensory exhibit showcasing the process that takes merino wool from raw fiber to finished fabric. The exhibit included photographs commissioned from the Magnum Photos Agency that will used in a book, “150,” to be released later this year as a tribute to the company. — JEAN E. PALMIERI FRAME SIMON MILLER DECONSTRUCTED INDIGO GARMENTS R13 A look from the collection. The multisensory merino wool exhibition. The label began in the same area as a hosiery man- ufacturer in 1755, and evolved over the years to incorporate outerwear, military garments and sportswear. In 2010, Jamey Hargreaves — whose family founded British retailer Matalan — acquired the label, and set about relaunching it as a heritage and performance sports brand. Prices for the collection start at 50 pounds, or $78, for a beanie hat. The line will launch at Wolsey’s London flagship on Soho’s Brewer Street. — NINA JONES
  • 13. 24 AUGUST 2015, No. 1 WWD.COM Nile Rodgers with Lena Dunham in Lisa Perry. EDITED BY TAYLOR HARRIS AND ERIK MAZA WWD.COM AUGUST 2015, No. 1 25 Très Chic Nile Rodgers and Chic whipped the Hamptons scene into a frenzy. Photographs by Steve Eichner Think pink. That was the mantra at the fourth annual Hamptons Paddle & Party for Pink on Saturday, in Bridge- hampton, N.Y. Gwyneth Paltrow, Lena Dunham and Nile Rodgers were among those decked out in rosy hues for a benefit that raised $1.6 million for the Breast Cancer Research Foundation through do- nations and a silent auction of 11 special paddleboards designed by the likes of Tory Burch, Aerin Lauder and Oprah Winfrey. “I feel so lucky that there are a few people on the planet who care about what I have to say and that I have the opportunity to talk about things that are important to me,” Dunham said. While the “Girls” star has often turned her attention toward women’s repro- ductive causes, she said, “Breast cancer research is a new frontier for me. I feel really lucky that the people at BCRF were willing to educate me.” Rodgers, meanwhile, said the evening was meaningful for him because, “I’m a cancer survivor myself.” The disco star — who just released a new album with his band Chic in June — said his re- surgence onto the music scene is due to his 2013 collaboration with Daft Punk, which has won him a new kind of fan to his music. “I’ve never been recognizable, which is fine…but being in that Daft Punk video was the first time people started to see me,” he said. “Be- cause Daft Punk has the robot thing going on, a lot of people who had never bought Daft Punk records before or heard them thought that Pharrell and I were Daft Punk, and the robots were our cool props.” After cocktails, Chic delivered a rousing performance that sent the Moët & Chandon-fizzed crowd into a raucous, Jack Rogers-stomping dance scene. — MISTY WHITE SIDELL SAT AUG 1 Nicole Miller A performer at Paddle & Party for Pink.Hannah BronfmanTracy Anderson Laird Hamilton and Gabby Reece Hilary Rhoda Lisa and Richard Perry Gwyneth Paltrow
  • 14. Arts & Culture 26 AUGUST 2015, No. 1 WWD.COM Photograph by NYRA LANG Styling by MAYTE ALLENDE Hair by JOSUÉ PEREZ / TRACEY MATTINGLY Makeup by MATIN / TRACEY MATTINGLY Story by LEIGH NORDSTROM First Lady of the Theater Phillipa Soo soars in “Hamilton,” Broadway’s hottest show. to attend school at Juilliard — recent Tony winner Alex Sharp was among her classmates. Shortly after gradu- ating, she was cast in the acclaimed off-Broadway pop opera “Natasha, Pierre and the Great Comet of 1812” and gave what the New York Post described as a “star-is-born per- formance.” In December 2013, she joined “Hamilton” when it was in its earliest incarnation. “I came to New York for school, and then I did this amazing show that was received very well, with a great group of people, and I felt like I was creating something that I was really proud of, and then ‘Hamilton’ was my next big thing in New York,” she says. “Part of me is like,‘When is it going to be crap?’ There’s a part of me that is aware that that’s a very special thing, but also I don’t really know anything else.” From its opening at the Public last November,“Hamilton” has resonated with audiences for reasons beyond its theatrical ingenuity. It’s been praised as an allegory of America’s long struggle with race and immigra- tion, particularly at a time when the two topics are at the forefront of the national conversation, and also for its cast, one of the most diverse ever on Broadway. “It kind of messes with your whole concept of gender and race. It feels like now. Like,‘Oh, this is what we’ve been waiting for,’” says Soo, who is Chinese-American.“It’s a nice reminder that being in this country, being an American, means that you’ve come from something else.” Much like her first big show in New York, Soo has been singled out for her performance — The New York Times called her “fabulous” in an early review — and in particular for her showstopper,“Helpless,” which tells in a single number of Alexander and Eliza’s courtship and marriage. It is slowly dawning on her that she may be part of one of those original ensembles that’s likely to be talked about for years, a point that was underscored when the actors on “Hamilton” performed “What I Did for Love” in the spring with some of the original cast members of the seminal Public musical “A Chorus Line.” “A lot of times when people come backstage, they’re sort of stunned,” Soo says.“And I’m like,‘Don’t worry, I’m on the same boat.’” ■ “A lot of times when people come backstage, they’re sort of stunned. And I’m like, ‘Don’t worry, I’m on the same boat.’” — Phillipa Soo “Hamilton,”“Hamilton,”“Hamilton.” Since it opened in January at The Public Theater in New York, Lin- Manuel Miranda’s “Hamilton” is all anyone can talk about in the theater. Critics have gone out of their way to come up with new superlatives for a musical that’s only on its surface a portrayal of the first U.S. treasury secretary. Everyone from President Obama (and First Lady Michelle) to Madonna have scored front-row seats to the toughest ticket on Broadway. And somehow on the road to the Richard Rodgers Theatre,“Hamilton” has become the first show since “The Producers” to become a crossover theatrical event, the subject of conversations not just on Broadway but op-eds in Washington for its deft mix of show- biz pizzazz and social commentary. For veterans like Miranda and Jonathan Groff, who stars in the show as King George III, the hubbub might be all too easy to handle. But also thrust into the spotlight has been a 25-year-old actress with only one prior credit to her name, and she seems to be taking it all in stride. “My life is just full‘Hamilton’ right now,” Phillipa Soo says.The actress, who plays Eliza Hamilton,is at a café near the Rodgers taking a rare break from rehearsals just a few days be- fore opening night on Aug.6.“We’re still working right now.It’s not like,‘And now we’re here,on Broadway!’ We’re changing lines,we’re re-blocking…” A Chicagoan who practically grew up on the stage — her grandmother was a concert pianist, her mother worked secretarial jobs in the the- ater — Soo came to New York in 2008 Vionnet’s leather dress. Necklace by Astley Clarke; earrings by Samantha Mills; rings by Catbird; bracelet by Lillot. Report Card The bowl cut — risky business for anyone other than a mom DIYing her child’s haircut. But she has some nice lowlights. Whoa. Between the shoulder pads, the bright red hue and the I-mean- business pose, this look is aggressive, Eighties power bitch. She frightens us. Even the rings are scary. The shoes are the only part of this look that reads modern. The pulled-back style shows off the fact that this woman does not age. The tuxedo lapel halter and cinched waist emphasize her impressive bosom in a classy, relatively covered- up way. Thumbs up on the safety-pin broach as an unexpected alternative to necklace bling. The shoe is edgy and cool with a touch of tribal red around the ankle, but, if we’re telling the truth, the straps give her cankles. Religious and cultural insensitivities aside, this could be a real money-saver. No one would notice her “deflated breasts” and crow’s-feet. The backpack is as big, shapeless and brand neutral as the burqa. It’s a little matchy- matchy. The gold thongs are bare and a little glitzy — not to mention frowned upon in public by the Muslim religion. A cool sneaker would’ve been more sensible. WWD.COM AUGUST 2015, No. 1 27 B+ HelmsphotographbyMichaelLoccisano/GettyImages;BanksbyVincentSandoval/WireImage;BidenbyChipSomodevilla/GettyImages;BündchenbyCHP/FameFlynetPictures; HayekbySteveGranitz/WireImage;JidennabyShareifZiyadat/GettyImages;MarabyMarcusIngram/GettyImages;CasiraghibyWalterGatti/SplashNews/Corbis *Allegedly Gisele Picks an Unwise DisguiseFrom Pierre’s Prince Charming to Tyra’s Power Bitch, here are the best and worst of the week. Ed Helms Tyra Banks Joe Biden Kate Mara Pierre CasiraghiSalma Hayek Jidenna D AB+ The Vice President should use SPF 50 when hitting the golf course, especially if he’s thinking of running for president. The light blue shirt paired with the geometric patterned red tie gives him British banker flair that shows his worldliness. Although this suit is nothing to rave about, it seems appropriate for him. However, a more fitted silhouette would give him a more youthful appeal. D His boy-next-door look works wonders on the big screen, but in the world of fashion, that can’t save this strangely shrunken style. The soft- shoulder cropped silhouette of the blazer is too small for him, yet the sleeves are too long. Something is going on in Hollywood with leading men wearing skinny khakis. This pair in Army green works well with the beat-up boot but clashes with the light blue shirt and navy blazer. C Trim your beard, you look like a goat. The three-piece suit fits him well but when paired with the two-tone graphic tie, the round-collared shirt, pocket watch, pocket square and gold statement buttons, it’s too emotionally draining. We are all for a playful pant proportion, but the ultraskinny cropped silhouette feels a bit out of place with the vintage flair of the ensemble. The whiskey colored shoes match the cane — even so, he should lose both. There’s no quicker way to look fashiony than lopping off your hair. The pixie has a nice, messy texture to it and her face can handle the cut. Plus, it also shows off her cool ear cuff. The collar goes with the Peter Pan ’do, but we could do without the floppy bow. Also, a lacy bra would have worked better underneath the top, rather than this full-coverage camisole. That said, the look has a little bit of everything — lace, military vibes, collars, bows — and somehow it all works together. He’s the spitting image of his late father, Stefano, with the straight nose, chiseled features and beautiful wavy hair. That’s the hair of Prince Charming. In this perfectly tailored white tie and tails he would be the envy of everyone at last year’s Met Gala. At 6 feet 2 inches, the traditional evening ensemble works great with his elongated silhouette, perfectly fitted pants and patent leather shoes. And the diamond shirt studs make the outfit even chicer, if that’s possible. Gisele Bündchen* B- FAIL
  • 15. City File 28 AUGUST 2015, No. 1 WWD.COM BY KAREN PARR-MOODY ILLUSTRATIONS BY STUDIO MUTI COUNTRY POPULATION LAND MASS OFFICIAL LANGUAGES MAJOR INDUSTRIES NOTES USA 648,000 English Music, health care, publishingand tourism The 42-foot-tall Athena sculp-ture in Nashville’s Parthenon is,in part, a portrait of Elvis Presley.Nashville sculptor Alan LeQuirewas inspired by the singer’s“perfect fifth-century-BC classi-cal features.” 497mi2 Tuning In to Nashville Before Nashville was dubbed an “It” city, it was known as the home of a) the Grand Ole Opry, and b) Southerners, creating a flavorful mélange. Newcomers have added edgy music, James Beard Award nominations, contemporary art, escalating tastes and a burgeoning Nashville Fashion Alliance. Says Matt Eddmenson, cofounder of local jeans brand Imogene + Willie, “It’s all moving so fast.” EATDRINKSTAYSEESHOPEVENTS WWD.COM AUGUST 2015, No. 1 29 The Guide to Nashville for the first-time explorer. The HipsterThe Music Insider The Southerner Retail and Business Scene A decade ago The Mall at Green Hills — Nashville’s largest upscale retail development — was lacking in luxury. Then Tiffany & Co. and Louis Vuitton opened in 2006, followed by Nordstrom in 2011. The 868,000-square-foot store has amassed enough brands to make it a true shopping destination. These include Burberry, Jimmy Choo, Kate Spade, Tory Burch, Seven For All Mankind, Tumi, Michael Kors, Coach, Omega and David Yurman. Nearby is Hill Center Green Hills, a 225,000-square-foot mixed-use development that launched in 2007. Anchored by Anthropologie and Whole Foods, it is a blend of national and independent retailers, the latter including Billy Reid, the fashion line designed by a Louisiana native. Another indie is H. Audrey, a high- end fashion boutique from country singer Holly Williams, who opened it in 2007 “because we didn’t have very much.” Other shops are scattered about: jeans store Imogene + Willie, in the 12 South area, was among the first to gain national interest. Now, the newly founded Nashville Fashion Alliance wants to buoy area designers. Van Tucker, chief executive officer, says it is creating a sewing training acad- emy for underserved populations through a partnership with the Catholic Charities of Tennessee and The Housing Fund. “This is so that we can not only help those people learn a trade, but supply our industry with a skilled workforce,” she says. Nashville brands supporting the alliance include Imogene + Willie, Billy Reid, Otis James, Manuel, Valentine Valentine (by “Project Runway” alum- na Amanda Valentine), Emil Erwin, Elizabeth Suzann, NISOLO and Kayce Hughes (niece of Lilly Pulitzer). For the lucky few, the hot ticket is a live show at Jack White’s Third Man Records, one of dozens of recording studios in the hip enclave of East Nashville. Various acts from White’s label have played on its stage, including Alabama Shakes, Flat Duo Jets and The Kills. Robert’s Western World downtown is the ultimate honky-tonk, where live bands lure both hipsters and white-haired sweethearts onto the dance floor. With its boot-lined walls and top- notch musical lineup, it imbues its tourist-addled street with authenticity. Bluegrass, classic country, blues and Western swing keep The Station Inn hopping, as have Reba McEntire, Norah Jones, Robert Plant and Dierks Bentley. Manuel Cuevas, “The King of Cowboy Couture,” creates bespoke embroidered and rhinestone-studded garments at his atelier, Manuel’s, and has made suits for singers from Elvis to Jack White. Holly Williams, a country singer (and granddaughter of Hank Williams), sells high-end fashion at H. Audrey. Hit Billy Reid for luxe preppy fashion, and Hatch Show Print for hand-screened posters like those that touted vaudevillians and Opry stars. Imogene + Willie is the go-to for custom-fitted jeans. At Wilder, one finds Electra Eggleston home fabrics, inspired by photographer William Eggleston’s drawings. And a guy can’t get the Nashville look without a handmade Otis James bow tie. Galleries in the Wedgewood- Houston Arts District, including Sherrick & Paul and David Lusk, are the latest in the ever-growing art scene. Adelicia Acklen, the 19th-century owner of the Belmont Mansion, had great taste — and major money. Completed in 1953, her villa is now a museum that showcases many aesthetic gems. One is in Adelicia’s bedroom: hand- blocked wallpaper made by the fabled Dufour of Paris. At the Schermerhorn Symphony Center, musicians watch fellow musicians perform against the grand canvas of the Nashville Symphony. In the last decade the symphony has gained listeners — beyond blue bloods — by backing country artists, including Willie Nelson, Lyle Lovett, Wynonna Judd and LeAnn Rimes. Architect Nick Dryden coaxed the 404 Hotel’s five rooms out of a mechanic’s garage to create this cozy downtown nest, which offers Sferra linens and Malin + Goetz toiletries. Opened in 1910, the five-star Hermitage Hotel has welcomed Bette Davis, Greta Garbo and six American presidents. Italian sienna marble and Russian walnut are among the materials that decorate the building; Persian rugs are also in the mix. The Hutton Hotel is a music industry favorite located a few blocks from Music Row. The contemporary-style lobby includes local artwork, and the hotel is filled with sustainable furniture, bamboo flooring and energy-efficient EcoDisc elevators, all part of its eco-friendly commitment. The 5 Spot bills itself as “the musician’s hangout:” Wanda Jackson, Kid Rock and Sheryl Crow have all played at this dance party venue. No. 308 pairs mixology with what many Nashvillians crave: a chill vibe. And Pinewood Social adds six reclaimed wood bowling lanes to its ambience. The Oak Bar’s dark wood-paneled walls ooze clubby sophistication. Located in the Hermitage Hotel, it features a wide selection of expensive whiskeys, along with a menu from the esteemed Capitol Grille. Hot spots have popped up as fast as chefs’ James Beard Award nominations. Rolf and Daughters is the Germantown brainchild of Philip Krajeck, who has garnered multiple nominations. The menu of rustic Italian fare emphasizes house-made doughs, seasonal produce and whole-animal butchery. Husk’s menu — directed by James Beard Award-winning chef Sean Brock — changes daily and features only Southern ingredients. Nearby farms supply grass-fed, grain-finished Angus beef, country hams and sustainably grown produce. Here, Southern flavors find a gastronomic temple, figuratively and literally; Husk is in a beautiful mansion from the 1870s. Union Common, a restaurant wedged narrowly between Broadway and Division streets, is an easy stroll from Music Row, making it the new wine-and-dine spot for country stars and music insiders. The menu ranges from small plates to the decadent Nashville Tower, an iced array of shellfish.
  • 16. By PETE BORN Photographs by MAURIZIO DI IORIO Typography & Illustrations by FABIAN DE LANGE Ulta Beauty is one of the hottest retailers in the U.S. prestige market, a fact that is explored in depth in the following pages, featuring interviews with the leaders who shaped modern Ulta and top brands that built the business. Its unique merchandising structure of mass, class and salon makes Ulta Beauty what The NPD Group’s Karen Grant calls “the trifecta of beauty.” She observes, “They have pillars to build upon and levers they can press.” With first-quarter growth of comparable-store sales at 9.7 percent, Ulta is just getting warm as it celebrates its 25th birthday. U L T A B E A U T Y ' S 2 5 T H A N N I V E R S A R Y W W D M I L E S T O N E S WWD.COM AUGUST 2015, No. 1 31
  • 17. 32 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES Stepping on the Gas t 25 years old, Ulta Beauty is one of the hottest beauty retail- ers in the U.S. with a reach of more than 800 doors, and plans to get bigger fast. But despite its size and might, beauty vendors and Wall Street analysts alike applaud the retailer for its nimbleness. Ulta’s constant tinkering with the mix, merchan- dising and marketing is part of its quest to draw in more customers. “We are not complacent,” said chief executive officer Mary Dillon. “It’s an ever-changing world we live in….We’re always going to be in a mode of testing and experimentation. We can’t stand still,” A she added, referring to a competitive landscape that includes Sephora, Kohl’s Corp. and Macy’s Inc., among others. The strategy reflects a key management tenet of Dillon’s that she calls “continuous improvement.” “We’re in a mode of being celebratory, but we’re just getting started,” she declared. The retailer is expanding its presence at a rap- id-fire pace, opening approximately 100 units a year with a goal of reaching 1,200 doors by 2019 in a bid to introduce its nameplate to more con- sumers across the country. The store expansion is part of Dillon’s five-year growth plan, adopted in 2014 and intended to result in 500 new stores, an e-commerce operation that accounts for 10 Ulta Beauty is celebrating its achievements, while keeping its eye on the future. By MOLLY PRIOR Photographs by LUCY HEWITT ► ULTA'S SILVER STREAK
  • 18. 34 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES Stepping on the Gas ULTA'S SILVER STREAK percent of sales and com- parable-store sales growth of 5 to 7 percent a year. Ulta also is testing a smaller-format store, which is half the size of its typical 10,000-square-foot box, in two rural markets — Vernal, Utah, and Mor- ganton, N.C. — and plans to roll out several hun- dred of them. It’s also looking at a 7,500-square- foot box in certain markets. hen Dillon took the reins as ceo two years ago, she inher- ited a beauty emporium that housed mass, prestige and salon brands, along with beauty services, under one roof. This democratic view of beauty retailing has amassed a legion of loyalists. After all, approximately 80 percent of its sales come from its 15.5 million loyalty club members. But there are still plenty of beauty shoppers who are unfamiliar with the Ulta name, and many who do know the retailer aren’t aware that it also offers hair, brow and skin-care services. Dillon acknowledges that Ulta’s name recognition lags behind many of its competitors. But she sees this reality as a huge opportunity, particularly since Ulta has yet to fully turn on its marketing might. Ulta plans to do just that in September, when it launches its first national advertising campaign, “Go Ahead, Lose Yourself,” across TV, radio, dig- ital and social media. The campaign, coupled with Ulta’s growing store base, could help double its share of the U.S. beauty market to 6 percent, up from its current 3 percent, over the next five years, said several analysts. Ulta’s stepped-up marketing effort includes its UltaMate Rewards loyalty program. In early 2014, the retailer migrated all program members to one platform and invited its sales associates to join so they can better explain the benefits to consumers. “The way it works is the more you spend, the more points you get, and our guests love that simplicity,” Dillon said. “But behind that, we have the ability to use good, keen consumer insights to partner with our vendors and say, ‘How can we help you understand how to grow your brand?’ And for our guest, she gets more personalized offers.” Dillon said one of the most surprising findings gained from the data is that only 7 percent of its loyalty-card members have visited a salon at Ulta. “So now that we know only 7 percent of our guests have tried our salon, you can imagine what a great opportunity that is for us to help them understand the possibilities and give them offers to come in and try the salon with services like blowouts and updos.” Dillon said salon patrons spend two-and-a-half times the amount and shop twice as frequently a year as Ulta’s nonsalon customers. At an Ulta store in Glendale, N.Y., a sign sta- tioned alongside the salon read: “An invitation to new guests: $30 haircut and style.” It encouraged customers to book online at ulta.com/salon. Elsewhere in the store, Benefit Cosmetics offers brow-shaping and Dermalogica provides skin-care treatments in its MicroZone pod. Dermalogica entered Ulta doors in 2006, and 2 5 Y E A R S O F U LTA 1990 Ulta3 — which was named for the three pieces of the business: salon, fragrances and cosmetics — is founded as a discount beauty retailer by two former Osco Drug presidents, Dick George and Terry Hanson. 1990 Ulta3 opens a cor- porate office and its first store in Lombard, Ill. 1990 By the end of the year, Ulta3 has five stores and a distribution center, all in Illinois. 1995 Ulta3 launches its first rewards program, Club at Ulta. 1999 Ulta3 becomes Ulta and focuses on additional salon services and more extensive personal amenities. 2000 Ulta.com is launched. 2000 Ulta debuts its private label with a cos- metics line. 2001 Ulta celebrates its 100th store opening. 2002 Ulta adds its first significant prestige brand, Bare Escentuals. 2003 Ulta tests a second loyalty program, UltaMate Rewards, to give guests points on every dollar spent to redeem on any- thing offered at Ulta. offers services across the chain. It’s also worked with Ulta to create customized treatments, such as the Power Resurfacing Peel, or three 30-minute sessions over the course of three weeks priced at $40 each, or three for $90. Steve Kurland, global ceo of Dermalogica, said Dillon’s vision for Ulta centers on the customer. “It’s really quite simple: She seems to have focused the entire company on the total reason for being and that is the guest,” Kurland said. “It’s a very ambitious vision, but it is backed up by the results that she has achieved in a short time.” Wall Street analysts are also particularly keen on Dillon. “It’sthebestboxoutthere,”saidOppenheimer W STEPPING ON GAS CONTINUED: ► ►
  • 19. 36 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES ULTA'S SILVER STREAK Stepping on the Gas 2006 Ulta becomes Ulta Beauty. 2007 Ulta goes public, with stock listed on NAS- DAQ, raising $153.7 million. 2008 Ulta invests in its second distribution center in Phoenix, Ariz. 2008 NYX is added to Ulta's brand assort- ment, and the company launches Benefit Boutiques with Brow Bar service. 2008 Ulta launches its private label bath, skin, sun and hair lines. 2009 Ulta launches annual Breast Cancer Research Foundation campaign, which has raised more than $10.5 million to date. 2010 The company rolls out Philosophy boutiques and expands its Benefit Brow Bars and Dermologica skin-care services. 2010 Tarte is added to its brand assortment. 2011 The Men’s Shop is introduced, which includes fragrance, skin care and grooming. 2014 All loyalty program members are converted to UltaMate Rewards. 2014 Ulta achieves its first $1 billion quarter in Q4 and reaches $3.2 billion in sales for fiscal year 2014. 2015 Ulta Beauty hits 800 stores in 48 states and opens its fourth distribu- tion center in Greenwood, Ind. 2015 The company grows UltaMate Rewards to 15.5 million members. analyst Rupesh Parikh, calling it the go-to place for suburban beauty enthusiasts. “It continues to enhance its merchan- dising, which is one of the keys to their success.” Ulta’s financial performance has kept those accolades coming. The retailer continues to grow at a staggering rate, achieving $3.24 billion in sales in 2014, or a 21.4 percent gain over the prior year. Its total same-store sales, which include its e-commerce site, gained 9.9 percent during the year. lta has steadily attracted pres- tige brands to the assortment. It’s a path forged by former ceo Lyn Kirby, who wooed brands by knocking on doors and dra- matically improving the in-store experience. Now Benefit Cosmetics boutiques are found in approximately 600 locations, and Lancôme and Clinique boutiques each occupy about 100 doors. The addition of these brands has helped fuel those double-digit sales gains, as prestige cosmetics and skin care lead the compa- ny’s growth. While walking through the Glendale, N.Y., store, where upscale brands such as Bare Escentuals and Philosophy are front-and-center, Dillon is quick to point out that mass brands, or what she called “accessible brands,” are also an essential part of Ulta’s positioning and competitive advantage. “What we are all about is creating a differentiated environment, understanding the guest, where she shops and what she wants,” said Dillon. “We are always going to have competition, but nobody does what we do on the scale we do it. We’ve got all these categories, price points and services. It’s the notion of all things beauty in one place.” When speaking about strategy, Dillon frequently refers to putting the customers — and the store associates — at the center of Ulta’s decision-making. “The guest insight is really driving our model and the way we think about categories, products and services. We are very focused on a [consumer] segment that we call the beauty enthusiast,” Dillon said. “She’s somebody who absolutely loves to shop for beauty. She likes to curate her own look, and walk across the store and pick from lots of great categories and brands. When she wants assistance, she can get it, but sometimes she doesn’t. For her, it is absolutely critical that she can pick up a Maybel- line product, an Urban Decay product and a Murad product. She loves the notion of being able to put them all together.” Dillon’s focus on the customer also is winning her points with Ulta’s vendors. Bare Escentuals has collaborated with the retailer to create a number of exclusives tailored to the Ulta consumer, using its customer relationship management data, or CRM. “[Mary’s] brought a strategic vision,” said Bare Escentuals ceo Simon Cowell. “She has a strong brand and marketing background and most importantly, she has a great passion for the guest.” He added that Dillon — who prior to joing Ulta in 2013 was ceo of U.S. Cellular and held marketing posts at McDonald’s Corp. and PepsiCo Inc. — has a natural curiosity about the business. He recalled that shortly after she arrived at Ulta, she visited Bare Escentuals headquarters in San Francisco and spent the entire day with Cowell and his team as he took her through the company’s history. She then used these types of meetings to help inform her vision for Ulta, said Cowell. “Something has kind of shifted at Ulta. It’s asking what’s next for Bare Escentuals and how can Ulta amplify that? It’s thinking in a more visionary way.” Ulta continues to test new brands in the assort- ment, particularly though its Web site, where it can gauge consumer interest before rolling out to stores. That was the case with Skyn Iceland, which the retailer began selling on ulta.com in September 2013, before introducing one product, Hydro Cool Firming Eye Gels, to stores one year later, said Skyn Iceland’s president and founder Sarah Kugelman. The range will begin rolling out to more stores in August and is slated to be in all 800 Ulta doors by February. “It’s a game-changer for us. It will double the size of our business,” said Kugelman. William Blair analyst Daniel Hofkin said of Dil- lon, “She came in with fresh eyes and said, ‘How fast should we be growing? What is working and what is not?’ She’s very good at identifying what Ulta’s strengths are. She’s not trying to make sweeping changes for the sake of it.” Dillon prefers to take a more evolutionary approach. “I am a big believer in testing and learning and not changing things too dramatically overnight. It’s too risky,” Dillon said. “If something is not broken, I’ve learned not to go ahead and try to fix it. Let’s sit back and try to hypothesize about what areas will continue to make us stronger.” Now, she is fine-tuning, constantly asking, “What can we do better?” Parikh at Oppenheimer said, “There’s so much growth ahead. They have so much opportunity in the U.S.” ■ U STEPPING ON GAS CONTINUED: Terry Hanson 1990 — 1999 In Ulta’s first year, Hanson raised $11 million in venture capital and opened five stores and a distribution center in the Chicago area. In 1995, he helped launch the company’s first rewards program, Club at Ulta. The cofounder also launched ulta.com. Lyn Kirby 1999 — 2010 Kirby transformed the retailer from a mass-market emporium to a national chain that housed salon services and both mass and prestige brands under one roof. She also established Ulta’s annual Breast Cancer Research Foundation campaign in 2009, which has raised more than $10.5 million to date to fund research. Chuck Rubin 2010 — 2013 Rubin introduced The Men’s Shop in 2011, which includes fragrance, skin care and grooming. He also increased Ulta’s square footage at a rate of about 20 percent a year, or more than 100 doors a year. Each chief executive officer of Ulta has driven the company to new heights. Here, a look at each former ceo’s accomplishments during their tenure at the beauty retailer. L E G A C Y B U I L D E R S www.BrantInStore.com 1.800.265.8480 Congratulations
  • 20. WWD MILESTONES Key BrandsULTA'S SILVER STREAK 38 AUGUST 2015, No. 1 WWD.COM L’ O R É A L PROFESSIONAL Partner Since 1995 While Ulta Beauty carries hundreds of brands, six have been the backbone in significantly building the business. Here, a closer look. By JULIE NAUGHTON For L’Oréal Professional, Ulta Beauty has offered success for multiple brands, including hair-care brand Redken and nail line Essie. “L’Oréal’s Professional Products Division officially started selling Ulta Beauty in 1997, when it was still called Ulta 3,” said Pat Parenty, president of L’ O R É A L PROFESSIONAL Partner Since 1995 the L’Oréal Professional Products Division. “Our early conversations were very focused on increasing the quality of the salon experience for both the Ulta consumer and the Ulta stylists. Over the years, the strategic partnership has led us to strengthen our mutual efforts in develop- ing new service opportuni- ties, experiment with new merchandising ideas, test and learn on new products and promotions, and improve our training and education programs.” Parenty noted that his division currently sells 600 stockkeeping units across five brands in Ulta. “We also support Ulta’s salon professionals with hair-color, texture [styling products] and salon treat- ment products that have over 200 sku’s,” continued Parenty. Retail prices range from $8.50 for an Essie nail enamel to a treatment mask from Pureology for more than $50. Parenty believes that it’s been “a shared passion for the salon service providers” that has built the backbone of the business. “We provide them the education and support they need to provide the best possible customer experience and prosper as Ulta salon stylists,” he said. “Working as a strategic partner, we have shared new ideas, developed and improved our sales, marketing and education programs, shared results so we could learn and adopt best practices, and we took some mutual risks to try new ideas that are in line with current consumer expectations, as well as pushing the envelope to anticipate future consumer desires in beauty. We work closely with Ulta on our national promotion calendar as well as developing specific promotions that are tailored to the Ulta customer profile.” ’
  • 21. 40 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES Putting on a New FaceULTA'S SILVER STREAK Today, Ulta’s stores are in a much different place. That was clear when Winkler recently strolled through a store opened in February in Auburn, Calif. An example of the seventh iteration of Ulta’s store design is a far cry from the second- and third-iteration stores Winkler encountered early on. It combines an unprecedented number of prestige brands with mass brands and profes- sional hair care, and upgrades the look to match the upgraded beauty selection. “The original DNA hasn’t changed, but it’s matured tremendously and, every year, con- tinuously matures, and the guest experience has improved and continues to improve,” said Winkler, now Ulta’s senior director of store plan- ning and design. Ulta’s typical store houses some 400 brands and occupies 10,000 square feet with 950 square feet dedicated to a full-service salon. Power cen- ters are mainstays of Ulta’s retail real estate, but malls are increasingly in the real estate mix. As of May 2, the retailer operated 797 stores in 48 states and is progressing toward a goal of reaching more than 1,200 stores. Winkler and his team of 14 store designers and planners get involved prior to Ulta signing leases. It takes six to eight months for a store to be com- pletely designed and built out. “What we’ve really created in the store design is [a] kit of parts and a philosophy of flexibility,” Winkler said. The exterior is usually white to provide a fresh, clean invitation to enter the store premises, and has orange awnings and a gray sign that appears white at night. Windows are decorated with hen Erwin Winkler was first courted to join Ulta Beauty as vice president of creative ser- vices more than a decade ago, the Manhattanite had never heard of the specialty beauty retailer. He was flown from New York to Chicago to size up its retail format and what he saw was a drugstore-like environment with aspirations to be grander. At the time, Lyn Kirby, then president and chief executive officer of Ulta, told him, “We want to get to a different place,” and Winkler, who formerly held positions at Coach, Escada and Ralph Lau- ren, was sold. “My reaction was basically that I get it,” he said. “I try to bring as much style and lux- ury to the store design as we can possibly afford.” W Erwin Winkler takes Ulta from a drugstore mind-set to a three-dimensional mass, prestige and salon emporium. By RACHEL BROWN Photographs by JUSTIN KANEPS Erwin Winkler takes in the scene at the Auburn, Calif., store. ►
  • 22. 42 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES Putting on a New Face ULTA'S SILVER STREAK promotional and branded mate- rials. An 80-foot frontage expanse permitting customers to gaze into the store is ideal. “As we’re starting to get more walking locations, we are starting to think about evolving the windows in a very different way. That’s yet to come, but it’s definitely on our radar,” Winkler said. As customers walk into the store, tables stocked with value and important new items greet them. Those items are swapped out every three weeks or so. As customers travel deeper into the store, Winkler described how they go from beauty wants at the front — color cosmetics and fragrance — to beauty needs toward the back, where styling tools, professional hair care and the salon sit. Along the walls are lit arches, newer elements of the stores, dedicated to select brands and categories. inkler, who majored in art his- tory at Dartmouth College and obtained a graduate degree in architecture from Harvard Uni- versity, likened the store layout to that of a medieval church. He said, “You have the high altar that draws you to the back. You have two aisles, instead of one main aisle, that take you to the back, and you have chapels on the sides.” Winkler’simprintsareeverywhere.“Ithinkabout a lot of little things that you’re not supposed to notice, but that you do feel,” he said. Case in point: The prestige displays were updated around seven years ago to move away from holes for each item, contain in-shelf lighting and add three-inch shelf strips to hold paper with extensive information. The hallmarks of the prestige displays — they have lush graphics, are 11 inches off the ground, compared to four inches, and have four versus five shelves as well as internal illumination — are engulfing more of the store. “It’s at a height that’s more accessible,” Winkler said. “I always do the butt test. What woman in the world wants to shop with her butt out. It’s that simple.” Winkler has been enhancing the aesthetics of the Ulta-branded areas within the stores and, perhaps on a bigger scale, renovating fragrance presenta- tions. By the end of the year, 75 stores should have redone, more intimate fragrance areas. “Everything should have a tester and clearly be brand driven from the top. It didn’t have the tactile luxury and experiential part that prestige had,” Winkler said. Winkler has also reexamined salon concepts during his tenure. The salon is no longer hidden and walled off. It has a low glossy white wall, con- cierge desk and chairs for waiting that demarcate it, but customers can peer in. “The salon is set up to be visible, to be animated as opposed to being separate,” Winkler said. Whether all services should be so open is up for debate. Ulta customers are happy to have their brows done right on the store floor. They are less certain about skin-care services on the floor. Going forward, Winkler’s challenge is to keep the stores novel while handling a burgeoning fleet. He said, “It’s much bigger, but I certainly would never want to sacrifice the finesse that I think we’re able to do because it means something to her [the Ulta customer]. It really, really does.” ■ W More views of the Ulta Beauty store in Auburn. ULTA STORE CONTINUED:
  • 23. NYX Cosmetics started with a two-foot spot on the planogram at Ulta Beauty — and now has grown to a 14-foot space, noted Brandyn Muegge, senior vice president of sales for the brand. “Ulta has been an amaz- ing partner,” Muegge said. “They like to think outside the box, which is perfect for NYX. Together we have created many unique pro- grams that have helped build the business to the success it is today.” The retailer sells the brand’s 936 stockkeeping units both in bricks-and- mortar and on ulta.com. Items range in price from $4.50 to $25, noted Muegge. In addition to supporting their brands, Muegge added, “they have worked to build their online presence and social media, which is key to communicating with the beauty junkie.” [Ulta has] “allowed us to try new things, and have used their reach to promote the brand.” She noted that NYX is developing Ulta-exclu- sive offerings for 2016, although she declined to discuss details. — JULIE NAUGHTON N Y X Partner Since 2009 WWD MILESTONES Key Brands ULTA'S SILVER STREAK 44 AUGUST 2015, No. 1 WWD.COM Congratulations on 25years Here’s to dreaming big and making IT happen together!