Fashion Industry News Roundup: 02/25/09

1.) Retailers Report Dismal Results and Brace for a Bumpy Future:
"Retailers marched out a series of cheerless results Tuesday for their most important season of the year, the fourth quarter, when consumers seem to have put off buying almost anything they had a choice about . . . 'Things are not pretty out there, and I think the numbers reflect that,' said Bellevue, Wash.-based retail analyst Patricia Edwards."

To sum it up: Target's fourth-quarter profit dropped 41% from last year; Macy's saw a drop in fourth-quarter profit of 59%; Fossil Watches sales dropped 13% in the last quarter of 2008 and Nordstrom reported that its fourth-quarter earnings fell 68% while also predicting that its earnings for 2009 will drop 10% to 15% in comparison to 2008.

Meanwhile, the fashion shows go on and Spring merchandise is arriving in all the department stores . . . well, except for Barneys: "As the apparel industry rushes to get its shop floors ready for springtime shoppers, tony department store Barneys New York is facing a retail nightmare: A lack of new garments." Which means that garment companies have put a freeze on sending merchandise to Barneys as they're uncertain that Barneys has the financial backing to eventually pay for the merchandise, or even keep its doors open for much longer.

In related news, cobblers and tailors are seeing an increase in business as consumers repair existing items rather than shop for new merchandise: "With the dreary economic outlook not changing anytime soon, not as many people are leaving malls carrying shopping bags. Instead they are turning to shops where cobblers and tailors are fixing shoes or altering clothes already in the closet."

So much for the latest "it" shoe hype . . .

Bucking the trend? Cosmetics and skin care: Women forsake frills but spare no expense for skin -- "'Demand for luxury cosmetics remains firm, defying the economic slump,' said Rika Matsumura, a retail analyst at Okasan Securities Company . . . (Japan's) $17 billion cosmetics industry is tempering the effects of the recession thanks to the growing number of women who have the money and inclination to buy expensive skin care products."

And there's more: "CNielsen announced the U.S. mass retail color cosmetics category grew by 3.6 percent, compared to last year's fourth quarter. 'I hear during the Great Depression, lipstick sales increased,' said Ellen Davis, a vice president at the National Retail Federation. 'I think we're seeing the same kind of activity today.' While shoppers may be unwilling to spend $300 on a new outfit, Davis said cosmetics is the one area where some women are rewarding themselves."

Look good = feel good. It's pretty simple math.

2.) Italian Fashion Industry Wants Its Bailout:
"In a senate hearing this week, the head of Sistema Moda Italia, which represents the textile and clothing industry, warned of risks for the sector and called for government help. 'The Italian clothing and textile sector risks falling to pieces under the weight of the international economic crisis,' Michele Tronconi, was quoted by Italian media as saying. 'We don't want someone to pedal for us. We know how to ride a bicycle well but at this time a push is necessary.'"

Thus proving you can never have too many hats, shoes and gloves . . . even the Italian government thinks so (thanks to Marin for the lead on the article).

Yet while the rest of Italy stumbles, Armani opens a brand new, gleaming flagship on Fifth Avenue: "'This is just amazing,' said Posh (Beckham) as she entered the grand Fifth Avenue flagship . . . The circular ramps climbing the massive flagship were reminiscent of the Guggenheim's iconic interior. At the top of the staircase nearly every major editor and buyer circulated with cocktails in hand, taking breaks from supreme people watching to nibble on Armani chocolates."

If somebody has to do Italy proud, it may as well be Armani. Video clip below of Armani Fifth Avenue store construction:

3.) Roberto Cavalli Cancels 'Just Cavalli' Milan Runway Show:
"Italian fashion designer Roberto Cavalli has cancelled a show of his youth line Just Cavalli at Milan Fashion Week, he said Tuesday, citing financial problems . . . 'The difficult situation of Ittierre (the company that owns the brand) did not guarantee that I could be as avant-garde as usual with my youth line,' he said."

Ittierre may file for bankruptcy protection soon, directly affecting the fate of other youth/diffusion brands such as Versace Sport, Versace Jeans Couture and Galliano.

Meanwhile, Versace is relaunching its lower-priced Versus line to reach the consumer that has cut back on high-luxe spending yet still wants to buy merchandise branded with the Versace name: "Wanting (Versace) to remain at this level, we thought of Versus as offering ... more man on the street prices ... to cover a different audience." Versace's chief executive officer Giancarlo di Risio and Donatella Versace were responsible for the decision to resurrect the Versus brand.

In related news: 12 year old, avant-garde Japanese men's brand Number (N)ine has closed up shop: "Here's an extra bit of info we got when we contacted Number (N)ine for confirmation: 'Yes, it is true. The collection we just showed was the final. We will produce it and finish out the year with that beautiful stuff. Then at that point all stores will close.'"

4.) Is Fashion Week a Sell Out?:
"It seems change may be coming to Fashion Week -- that is, if organizers determined to open show tickets to the public (for a price) have their way . . . As far as the cost of said imaginary ticket, prices are guestimated in the ballpark of $160 a pop with regard to top shows such as Marc Jacobs, Oscar de la Renta, and the like."

The idea has yet to garner much support with the more well-known names, but with finances lagging and the expense of putting on a full runway show becoming a make or break toll on design houses, it's not outside the realm of possibility.

Case in point: 'Recessionistas' brave fashion week -- "Putting on a show at Bryant Park is expensive. Really expensive. Designers can shell out anywhere from $200,000- $1 million-and that is twice a year . . . 'We had too much stuff, too much carpet, too much bling-bling, too much everything, and it was like having an upset stomach from eating to many good things,' said Karl Lagerfeld."

But it's Marc Jacobs that throws recessionary caution to the wind and pulls the rabbit out of the hat:

Marc Jacobs Fall 2009

5.) Oh, hey -- remember when I mentioned a few months back that Salma Hayek had divorced her husband, Francois-Henri Pinault, President of PPR (the luxury conglomerate that owns Gucci and Yves St. Laurent)? Well, I was wrong. They weren't married at the time, only engaged -- but they're married now: "The two met in Italy in 2006, announced their engagement and had a baby, Valentina Paloma, in September 2007. Last year they broke off their engagement but made up a few months later . . . Hayek's spokeswoman, Cari Ross, confirmed in an e-mail ... that the marriage had taken place in Paris on (February 14th)."

I'm a terrible gossip mongerer.

6.) London Mayor Pays to Fly in Buyers for London Fashion Week:
"The avant garde designers who exhibit in London are viewed as riskier in recessionary times as history shows shoppers tend to stick to classic pieces from long-established fashion houses such as Gucci and Prada. But there are fears for the economy if London Fashion Week is marginalised . . . The Mayor of London, Boris Johnson, has resorted to paying for buyers to fly in, spending £40,000 on airline tickets and accommodation to boost this week's shows."

Below is a clip of the Fall 2009 collection from one of those "risky" London design houses, Marios Schwab:

Christopher Kane is also a name that's on the lips of every fan of the cutting edge:

7.) Yves St. Laurent Art Auction Fetches Record Sums:
"The private collection of Yves Saint Laurent and his partner became the most expensive one ever sold at auction, bringing in more than $264 million on the first night alone . . . More than 1,200 buyers, dealers, collectors and wealthy art lovers were in their seats as Christie's staff members took bids from those abroad on 100 telephone lines. Most of the buyers were said to be American and European."

Record prices were paid for works by Matisse, Marcel Duchamp, Constantin Brancusi, James Ensor, Piet Mondrian and Giorgio de Chirico. The auction spanned several days and also included furniture, silver and Asian antiquities. There was a brief international stir as China protested the auctioning of two ancient bronze pieces it claimed were looted from the country over a century ago, but Yves St. Laurent's former partner, Pierre Bergé, stated that he legally purchased the pieces yet would willingly give them back to China "if Beijing would observe human rights and give liberty to the Tibetan people and welcome the Dalai Lama.'"

China, of course, declined the offer.