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SECTION II WWD.COM
inside
Editor in Chief
Edward Nardoza
Editor
James Fallon
Managing Editor
Richard Rosen
Managing Editor,
Fashion/Special Reports
Dianne M. Pogoda
6 With denim one of the best-performing categories in
the apparel sector during the recession, companies are Senior Editor, Markets
Arthur Friedman
taking advantage of attractive real estate opportunities
to open their own stores. SENIOR Fashion Features Editor
Beth Kwon
8 The U.K.’s latest denim labels are the creations of Senior Fashion Editor,
retailers looking to give their denim an air of authenticity Sportswear
by building their own stylish identities. Kim Friday
Men’s Fashion Editor
10 The newest labels in the denim market have rallied Alex Badia
around a singular belief that consumers will embrace the Denim and Textiles Market Editor
concept of premium quality at less-than-premium prices. Ross Tucker
Senior Editor, Men’s
12 Customers may be shying away from paying for David Lipke
premium jeans retailing upward of $300, but the idea
Contributing Editors
of personalizing high-quality denim styles appears to be
Julee Greenberg, Nina Jones,
tempting enough to wave away any price resistance. Khanh T.L. Tran, Luisa Zargani
SECTION II WWD.COM
Denim Labels Ramp Up Investment in Branded Stores “Luxury is being redefined all over these days and but we can use this as a signature and pull certain el-
By David Lipke
we wanted to take the formality out of the stores, and ements out to other stores.”
With denim one of the best-performing give them more of a California feel.” Bernholtz said the store had garnered attention
categories in the apparel sector during the recession, The stores have also been bringing in some VF Corp. from potential franchise partners in Dubai, the U.K.
companies are taking advantage of attractive real es- sibling brands to “add some fun and pop,” said Battista. and Asia who were interested in the Rock & Republic
tate opportunities to open their own stores. Converse by John Varvatos footwear is in the stores retail concept for those markets.
The stores provide a stable revenue stream at a now and Varvatos’ Star USA label will be added in the The Los Angeles store joined a Rock & Republic
time when department stores and independent bou- spring. The denim brand is also testing some Splendid unit that opened in the Wynn Encore hotel in Las
tiques are facing credit issues and sometimes paying and Ella Moss product in its Malibu, Calif., unit. Vegas last December, which Bernholtz said already
vendors late. The Seven For All Mankind retail expansion is hit its sales goals for the year three months ago.
Last month, Los Angeles-based denim brand part of VF Corp.’s company-wide strategy to empha- However, earlier this year the company scrapped
Five Four opened its first signature store in nearby size owned-retail as a key component of growth. But plans to open a two-level, 2,800-square-foot flagship
Westfield Culver City shopping center. The compa- Battista acknowledged that’s it’s been a big challenge at 102 Greene Street in Manhattan, which was sched-
ny rings up about $8 million in sales annually, but navigating the economy while opening new stores. uled to open this past spring.
Andres Izquieta, who cofounded the label with a
University of Southern California classmate in 2002, By yearend, there will be 62 Seven
felt the timing was right to invest in a store. For All Mankind stores globally.
“We’re spending time and money on something
that may or may not work,” Izquieta said. “Some
people thought we were crazy going into retail in
this economy. But I like the retail model — you get
paid immediately and there are no chargebacks. I’ve
learned more in the past month by opening this store
than I did in my previous seven years in business.”
The company has done well enough with its first
store that its slated to open a second unit at the
Westfield Century City mall in Los Angeles the day
after Thanksgiving.
Five Four is among many jeans brands that have
invested in opening their own stores during the cur-
rent economic downturn.
“It’s about being able to control your own destiny,”
said Izquieta.
Los Angeles-based True Religion and Seven For All
Mankind have been at the forefront in rolling out their
own stores. By next month, VF Corp.-owned Seven For
All Mankind will have opened 13 new stores in the U.S.
this year, bringing its total domestic store count to 28
units, including five outlets. The brand has also contin-
ued a rollout of stores abroad with local partners, in- “This is the toughest I’ve seen retail in my career,” Similarly, the economy has impacted AG Adriano
cluding new units opening this year in Manila, Seoul, he said. “It’s been a year of learning.” Goldschmied, which earlier this year closed three
Taipei, Singapore, Shanghai and Beijing. There will be At Paige Premium Denim, president and ceo unprofitable stores in Orlando and Naples, Fla., and
62 Seven For All Mankind stores globally by yearend. Michael Geller echoed those sentiments. The compa- Troy, Mich. The company now operates 12 full-price
True Religion has opened 32 stores since the onset ny opened a Las Vegas store in The Venetian hotel in stores and six outlets. All the remaining units are
of the financial crisis in September 2008, bringing its October 2008, just as the financial crisis was unfolding. profitable, said Robert Rosenfeld, vice president of
store count to 68 in the U.S. and three outlets in Japan. “It was like, ‘Here are the keys to the store and retail at the Los Angeles-based brand.
“The retail climate has not changed our store growth here’s the cliff to jump off of,’” remembered Geller. “We’re not rushing out to open more stores right
strategy because our stores have performed very well in PPD operates three stores and the Las Vegas unit now,” he said. “But we would like to open additional
this environment,” said Jeff Lubell, chairman and chief has been hit the hardest by the economic downturn, units down the road in major markets.”
executive officer of True Religion Apparel Inc. due to the steep falloff in tourism there. The New The brand’s retail sales have picked up steadily
True Religion stores generate about $1,200 in sales York store in the Meatpacking District suffered last since April, said Rosenfeld, and the company is “cau-
per square foot annually. The company measures retail year but has bounced back this year, said Geller, tiously optimistic” heading into 2010.
performance in terms of operating profits as a percent- while the Los Angeles unit, the oldest, has been Among all denim brands, Diesel opened the most
age of net sales, and Lubell said its stores are exceed- steady over the past four years it’s been open. expensive and ambitious store this year, a three-
ing the company target of 30 percent in that metric. As a small, privately owned company, PPD is fo- floor, 20,000-square-foot flagship on New York’s Fifth
The company plans to open another 20 to 25 stores cused on opening stores that will produce profitable Avenue. In addition, the company opened a third Miami
in 2010. Currently, 85 percent of True Religion units sales, rather than serve as loss-leader marketing ve- unit and relocated two stores in San Francisco and
are in malls, versus 15 percent in street locations. hicles for the brand. Georgetown in Washington. Diesel operates 46 stores,
“We’re not opening glitzy showcases,” said Geller. including Diesel, Diesel Kid, 55 DSL and outlet units.
“We’re opening very functional and easy-to-shop “We could have decided not to open those stores in
denim stores. So it’s not a huge investment for us to the current economy, but they fit our criteria for where
open a store. We’re not building stores with our egos.” we see opportunity for long-term growth,” said Steve
Geller said for a brand like PPD, he’s found Birkhold, the ceo of Diesel USA, who is leaving at the
streetscape stores are preferable to mall stores at end of this year to take the ceo post at Lacoste USA.
this point. “We are positioning ourselves for 2010 and 2011 and
“When you go into a mall they often have a lot of beyond. If you know [Diesel founder and owner Renzo
requirements about how the store has to look, which Rosso], he’s an aggressive guy and to his credit he
can be expensive,” he said. “And when your competi- could have taken a hiatus from expansion, but hasn’t.”
tors in a mall go on sale, you’re forced to follow suit. Denim sales were down in the single digits this year
With a street store, you have a lot more flexibility.” at Diesel, while fashion apparel was down double dig-
Five Four opened its first store last One of the most important roles for PPD’s stores its, said Birkhold. These declines were partly offset by
month in the Westfield Culver City mall. is serving as a laboratory to test new product. For ex- strength in the footwear, accessories and underwear
ample, the men’s business has been performing well in businesses, which offer a lower price point entry to the
“True Religion is undergoing a transformation from PPD’s stores, accounting for 18 to 20 percent of sales, Diesel assortment. In response, the company has shift-
a premium wholesale denim supplier to a vertical retail versus just six to seven percent in wholesale accounts. ed its merchandise presentations and layouts within
lifestyle brand,” wrote analyst Todd Slater of Lazard “We’ve been able to show retailers that perfor- stores to put those categories in higher-traffic areas.
Capital Markets in a Nov. 4 research note. “We believe mance and have been able to build confidence in the “With our own stores, we can be nimble in mak-
it can more than double its footprint [of retail stores] do- men’s product,” said Geller. ing adjustments. We can implement changes by
mestically and also has white space internationally.” In contrast to PPD’s strategy, Rock & Republic’s Wednesday in response to trends we see on a
At Seven For All Mankind, co-tenancies are impor- glitzy new Los Angeles store does serve as an expen- Monday,” said Birkhold, who also said the company
tant factors in choosing store locations. sive marketing vehicle and brand showcase. The has cut payroll in stores in response to the difficult
“We’re looking for other brands like Michael Kors 3,800-square-foot flagship on Robertson Boulevard retail climate. “The reality is the consumer is in a
and Intermix and Juicy Couture to be near,” said bowed in May, after over a year of construction delays. little bit more of a self-service environment.”
Aaron Battista, the company’s vice president of retail. “It was like labor,” said company president Andrea At the Five Four mall store in Culver City, Izquieta
“That’s where the luxury contemporary shopper is.” Bernholtz. has been a hands-on ceo at his new venture.
Seven For All Mankind has tweaked the look of She said it was too early to tell if the store was turn- “I was in the store until 2:30 in the morning last
its stores in the past year, making them warmer and ing a profit, but emphasized it has burnished the brand night making changes to our spring collection,” he said.
more inviting, while moving away from the sleek and in the minds of consumers and retail partners. “Now we get to merchandise everything ourselves and
polished look of its earlier shops. “This is our signature space. It’s the finest of ev- I’m seeing things that bombed at wholesale are selling
“We’re making them a little more residential, with erything,” she said. “When you amortize it out, it very well in our own store. In a way, the recession has
natural materials and matte finishes,” said Battista. wouldn’t make the most sense to roll out a lot of them, actually been a blessing in disguise for us.”
0 0 1 S TE P TO
PRODIGIOUS
HE A LTHC A R E
I DREAM. I AM.
8 WWD, THURSDAY, NOVEMBER 19, 2009
SECTION II WWD.COM
A look Online
from the retailer
Reiss 1971 ASOS has
spring launched
collection. its own
denim line.
SECTION II WWD.COM
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nydj.com
16 WWD, THURSDAY, NOVEMBER 19, 2009
SECTION II
XXXXXXXXXXXX
WHAT’S NEXT IN DENIM
BRAND
NEW
BLUES
MODEL: JANELL/MAJOR; HAIR BY SEIJI USING TRESEMME AT THE WALL GROUP; MAKEUP BY MISUZU MIYAKE FOR KIEHL’S; FASHION ASSISTANT: ALYSA CENICACELAYA
JEANS + LEGGINGS =
JEGGINGS
GET A LEG UP WITH THIS SEASON’S “IT” JEAN.
Genetic Denim Joe’s Jeans Les Halles, James Jeans and Recession Denim.
Made in
Heaven
William Divine
Rast Rights of
Denim
Seven
For All
Mankind
Helmut
Radcliffe Lang
Denim Denim
18 WWD, THURSDAY, NOVEMBER 19, 2009
SECTION II
AMERICAN
MADE
CLASSIC AND DISTRESSED STYLES STILL WORK.
Current/ R13, Frankie B. and Kill City.
Elliott
Dickies
BLOOM
IN
COLOR SPRINGS UP.
Hudson, Meltin’ Pot, Vintage Revolution and Parasuco.
Levi’s
PHOTOS BY THOMAS IANNACCONE; MODEL: TRAVIS B./WILHELMINA; MAKEUP BY MISUZU MIYAKE FOR KIEHL’S; HAIR BY SEIJI USING TRESEMME AT THE WALL GROUP; FASHION ASSISTANT: LUIS CAMPUZANO
1. Levi’s jeans and Earnest
Sewn’s shirt, both in
cotton. Stüssy tie; Tiffany
& Co. tie bar. n
SECTION II WWD.COM
n 3. Kill City’s cotton and n 4. Acne’s cotton n 5. Ben Sherman’s denim n 6. Vans’ cotton and spandex jeans,
spandex denim jeans, jeans and Lova’s shorts with Aviator Nation’s Seven For All Mankind’s leather
J. Lindeberg’s wool blazer and cotton tank top. hoodie and tank top, all in and cotton jacket and G-Star Raw’s
CLU’s cotton shirt. cotton. J. Lindeberg belt. cotton and polyester sweater.
3. Skinny Fit With Stretch: A growing number of men’s jeans are incorporating creative director at Citizens for Humanity. At Seven For All Mankind, a pale ecru
stretch fabric for comfort and fit, especially in skinny fits. “We do really well with Kill shade is a riff on this style.
City in these styles, as they have a great price and interesting washes,” said Althouse.
5. Jean Sh rt : Denim shorts have cleaned up and become less grungy for
s
4. Over a hed, Faded ue : Pale blue denim is ideal for spring and summer spring, according to Audrey Gingras, owner of New York’s Archetype Showroom.
months, as it tends to be lighter and softer. “This trend is very important in our Its April 77 label offered a selvage style for spring.
o
s
spring assortment, as we’re one of the only brands to offer such a supersoft 6. Gray enim: An increasingly popular alternative to indigo shades, “gray denim
w
s
H
s
selvage in an alternative to white,” said Jerome Dahan, chief executive officer and is a neutral that goes with a lot of looks,” said Gingras. — David Lipke
D
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24 WWD, ThurSDay, NOvEmbEr 19, 2009
SECTION II WWD.COM
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“understand
The denim brands are really starting to
the power of social networking and
connecting with the consumer.
” — Johnny Pinto, The Denim Guy
are really starting to understand the power of social networking and connecting
with the consumer.”
liam Winn started Denim Geek this summer. He also found most blogs
were devoted to coverage of celebrities and found even fewer addressing
the men’s market.
“I wanted to create a simple blog that would help men find that next special
pair of jeans,” said Winn, who is based in the u.K. and has a background in
music and Web design.
Winn’s blog has garnered 6,000 hits
since mid-July and his readership is
growing. It’s required little effort to
find brands.
“There are a few times I’ve ap-
proached brands because I’ve liked the
look of collections,” he said. “but I now
also receive countless amounts of e-mails
from p.r. companies.”
Shanna mcKinnon is the editor
of Denim Hunt, which launched in
April 2007 with the backing of Cotton
Incorporated. mcKinnon is the site’s
second editor and has a background as a
trend forecaster. She took over responsi-
bility for Denim Hunt in June 2008 and
said Cotton Inc. has operated largely as
a silent partner. Denim Hunt is backed by Cotton Inc.
“They’re very hands off,” she said. “They basically said, ‘This is Denim Hunt,
it’s yours, take it and run with it.’ And it really has to run that way.”
mcKinnon said her aim is to position the site as the comprehensive online
denim resource, touching on everything from news to runway presentations to
celebrity photos. As with other denim bloggers, mcKinnon has found brands
coming to her.
“When I first took over, I thought I would have to reach out to a lot of them, but
as the site’s been getting more popular, I really don’t have to,” she said, adding
that the number of brands contacting her has spiked over the last six months.
“blogs to [the brands] are maybe more grass roots and they feel like if the
bloggers are talking about them, it can make their brand look more authentic,”
she said.
Denim Hunt reached a peak of 20,000 visitors last month and is averaging 2,000
hits a day. mcKinnon intends to focus on building the site’s Twitter following next
year while working on growing the site and making it more interactive.
“You can’t be stale — you’ve got to keep growing,” she said. “one of the ways
you show people you’re growing is visually.”