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Linear Thinking In Marc Jacobs’ world, this is restraint. For spring, he embraced, in his words, a “brutal simplicity” with a controlled explosion of graphics — most notably highimpact stripes of all sorts. The result was beautiful, sexy and very wearable.





Nordstrom Says Canada, Eh By DAVID MOIN NORDSTROM INC. IS getting ready to ride the wave of retailers entering Canada. According to sources, Nordstrom will convert at least three Sears sites — in Vancouver’s Pacific Centre, the Deerfoot Mall in Calgary and Ottawa’s Rideau Centre — and should start reopening the units in 2015 or 2016 after completing renovations. Nordstrom is said to be considering about a half-dozen locations that could open through 2020. One possibility down the road is on the west end of Toronto, in the Sherway Gardens lifestyle center anchored by The Bay, Holt Renfrew, Sporting Life and Sears. Nordstrom would take either the Sears site or the Sporting Life site. Nordstrom on Tuesday declined to discuss any details of its Canadian

plan expansion, though officials previously confirmed designs on Canada. On Thursday, the Seattle-based company is expected to unveil a partnership with one of North America’s leading developers, The Cadillac Fairview Corp. Ltd. The announcement will take place in Toronto, where Cadillac Fairview is based. Cadillac Fairview owns the three Sears locations that Nordstrom will be moving into and reportedly spent $200 million to buy back various Sears leases in Canada. “There’s lots of excitement about Nordstrom coming to Canada. Nordstrom has extraordinary brand perception,” said Toronto-based retail consultant Antony Karabus. “I can see Nordstrom operating six to eight fullline stores in Canada, with probably three in Toronto, a couple in Calgary, Montreal could handle one, Vancouver could handle one and Ottawa could handle one. And there could probably be about two dozen Rack stores.” “This is a logical move for Nordstrom,” said Mark Cohen, a marketing professor at Columbia Business School and former chairman and chief executive officer of Sears Canada Inc. “Nordstrom has quite a few Canadian customers in the Pacific Northeast. I think they are going to do SEE PAGE 2


Burberry Warning Sends Luxury Shares Into Dive By SAMANTHA CONTI LONDON — Is luxury headed into a hurricane or a rain shower? Industry observers were speculating about what lays ahead for the industry, as Burberry warned on Tuesday that adjusted pre-tax profits for the full year would be “around the lower end” of market expectations. Burberry’s stock price plummeted nearly 21 percent to 10.88 pounds, or $17.41, at the day’s close following an unscheduled announcement that second-quarter retail sales so far were up 6 percent — due entirely to new store openings. It was the second time in less than three months that Burberry has reported a slowdown in growth. Sales in the three months to June 30 climbed 11.2 percent, compared with 16.1 percent increase in the previous quarter. The news dragged down other fashion

and luxury stocks, including Compagnie Financière Richemont, which sank 5.1 percent to 60.85 Swiss francs, or $64.34; Ferragamo, 5.1 percent to 17.19 euros, or $21.98; LVMH Moët Hennessy Louis Vuitton, 3.4 percent to 127.80 euros, or $163.40; Mulberry Group, 4.2 percent to 13.01 pounds or $20.81, and PPR, 2.1 percent to 125.25 euros, or $161.14. All dollar figures have been calculated at current exchange rates. Luxury stocks were also in retreat in the U.S. Among the decliners were Tumi Holdings Inc., down 3.2 percent to $24.10; Ralph Lauren Corp., 2.6 percent to $156.22; Saks Inc., 2.1 percent to $11.20, and Coach Inc., 1.8 percent to $61.48. “We’re not in 2008, and Burberry hasn’t hit a brick wall — what we’re seeing is the continuation of a slowdown,” said Kate Calvert, a retail analyst at Seymour Pierce in London. “The question is, how much further will it slow? Right now we have no visibility, SEE PAGE 16



AFTER TWO-AND-A-HALF years as creative director at Diane von Furstenberg, Yvan Mispelaere is out the door. His abrupt departure was announced just 48 hours after von Furstenberg’s spring runway show, which was met with mixed reviews. Mispelaere will not be replaced, with the design team continuing to be directed by von Furstenberg, according to a statement released by the company Tuesday night. Mispelaere, who was described as “stepping down from his post effective immediately,” was known to be a tactile designer with a fondness for the Art Deco and Bauhaus periods, along with the design canon of Yves Saint Laurent. A veteran of Chloé, Valentino, Louis Féraud and other brands, he worked for Gucci before joining von Furstenberg in March 2010. He could not be reached for comment at press time. Yvan “I am so grateful for the conMispelaere tributions Yvan brought to DVF and fully support him as he takes the next step in his career. Yvan joined us almost three years ago and has added enormous value. He also put together a highly skilled design team to support our growth both in fashion and accessories,” von Furstenberg said. “I am very thankful and proud of his accomplishments here and I look forward to our strong team continuing to create the signature DVF look for women everywhere.” His exit comes on the heels of Joel Horowitz joining the company as cochairman. A 35-year in-

dustry veteran and one of the architects of Tommy Hilfiger’s multichannel success, Horowitz signed on with von Furstenberg less than three weeks ago. Industry sources said Horowitz’s plan is to take a stake in the company, and that he was brought on board to make the firm more ship-shape professionally. Given Horowitz’s track record, the speculation is that an initial public offering or outside investment could be the ultimate goal. In the company statement released Tuesday, Mispelaere said, “I came to DVF to help further the brand’s mission and create a world-class design team. I am confident we have been able to achieve that during my time with the company. I can’t thank Diane enough for the opportunity to work with her and such talented people. The group is now well-positioned for even greater success, and I am eager to take on my next challenge.” With founder von Furstenberg and Horowitz serving as cochairmen, they jointly oversee the board. President Paula Sutter continues to manage the day-today business and will report to the board. When Mispelaere joined von Furstenberg in 2010, he replaced Nathan Jenden, who had left to start his own label. At that time, von Furstenberg noted that while many fashion houses engage new designers to rescue or jump-start a business, that was not the case. “I’m not looking for a doctor,” she said. “He’s not coming to save the ship. He’s only coming to make it better.” “I hope Yvan will immediately put his signature on the collection,” the designer said in her first joint interview with Mispelaere. “I’m curious to see his slant. But it will still be DVF.” PHOTO BY FRANCOIS DURAND/GETTY IMAGES


Nordstrom Making Move Into Canada {Continued from page one}

very well right out of the gate. Target, too, is going to make an enormous splash at the outset.” Target Corp. is invading Canada by converting 125 to 135 Zellers sites in March and April and envisioning 200 stores in Canada in the next two years. “Every Canadian is going to check those out,” said Cohen. Along with Nordstrom and Target, Ann Taylor is planning its first international stores as well, in Yorkdale Shopping Centre and Eaton Centre, both in Toronto, this fall. Loft will open its first international store this fall, in the Yorkdale Shopping Centre. Loft and Ann Taylor are divisions of Ann Inc. Last year, J. Crew crossed borders by opening a store in the Yorkdale Mall, and is opening more in Canada. The local competition isn’t standing still, either. Holt Renfrew is looking to increase its selling space in Canada by 40 percent by the end of 2015. Holt is expanding its Yorkdale store to double it in size to 120,000 square feet by August 2013. The Bay is also aggressively renovating and modernizing its big flagships, seeking brand partnerships, advancing private brands and right-sizing assortments to favor fashion, food and shoes over furniture and home products. The parent Hudson’s Bay Co., which also operates Lord & Taylor in the U.S., is eager to go public and soon, before Target and Nordstrom arrive and the market share wars begin. Retail analysts said Nordstrom in Canada will fill a wide-open niche between Holt Renfrew and Harry Rosen on the high end, and Sears Canada and The Bay in the midtier, though one retail ex-

ecutive in Canada expects Nordstrom to skew its merchandising to the higher side of its price spectrum. Aspirational luxury and beauty are seen as two of the strongest opportunities for Nordstrom in Canada. The analysts also said they believe Target will most deeply affect The Bay, much more so than Nordstrom coming in with just a handful of locations, though they noted that The Bay’s ceo, Bonnie Brooks, is doing a good job modernizing the retailer. Last July, Richard Baker, governor and ceo of Hudson’s Bay Co., when asked about Target, said in America, Target’s impact on Macy’s Inc. is slight so he expects Target to have minimal impact on The Bay. Moving into Canada won’t be cheap for Nordstrom considering it involves paying rent, renovating locations, and new logistics to operate cross borders and in two languages. However, as Wendy Liebmann, founder and ceo of WSL Strategic Retail, said, “Canadians are very aware of Nordstrom and its high level of service, just as they are aware of Target. There is a gap in the market for something more approachable than Holt Renfrew but higher than The Bay or Sears.” Asked why there is so much retail activity in Canada, considering its small population of 34 million, Liebmann responded, “The fundamental issue is that most U.S. retailers recognize that they can’t continue to open more stores in the U.S., but they are looking for growth and in markets [such as Canada] that are more accessible, feel more familiar and where they feel there is less risk.”

Cole Haan Auction Enters Second Round COLE HAAN’S one step closer to a new owner. A Goldman Sachs-run auction for the Nike Inc.-owned brand has moved into the second round with financial players Apax Partners, TPG Capital and Leonard Green & Partners, as well as footwear firm Genesco Inc., still in the running, according to sources. Nike bought the New York-based Cole Haan in 1988 and said in May that it wanted to divest the brand, as well as Umbro, to “sharpen its focus on driving growth in the Nike, Jordan, Converse and Hurley brands.”

One financial source described Cole Haan as “an important brand” that the would-be acquirers were “taking a very hard look at.” For the fiscal year ended May 31, Cole Haan’s revenues rose 3 percent to $535 million. The brand has 109 U.S. stores and another 69 doors abroad. That’s just a small slice of Nike’s $24.13 billion business, and the source speculated that the company wants to complete a deal and move on. “It’s all downside for them, they just have to get this deal done because it would be embarrassing if it blew up,” the source said. — EVAN CLARK



Mispelaere Out as DVF Creative Director

Odile Coco Nordstrom Inc. is getting ready to ride the wave of retailers entering Canada. PAGE 1 Burberry warned on Tuesday that adjusted pretax profits for the full year would be “around the lower end” of market expectations. PAGE 1 After two-and-a-half years as creative director at Diane von Furstenberg, Yvan Mispelaere is out the door. PAGE 2 A Goldman Sachs-run auction for Nike Inc.-owned Cole Haan moved into the second round. PAGE 2 A preview of Milan Fashion Week, which runs from Sept. 19 to 24, including two designers to watch. PAGE 14 ChinaFile columnist Huang Hung has learned a lot about the Chinese consumer since opening Brand New China, her fashion boutique. PAGE 16 John Varvatos has created a special-edition Chrysler 300C, which the carmaker will deliver to buyers in March. PAGE 16 The Duchess of Cambridge wore a floral-print Prabal Gurung dress on the royal couple’s state trip to Singapore. PAGE 17 Harper’s Bazaar is diving head first into e-commerce today with the debut of ShopBazaar, a content-driven online store that makes the pages of the magazine shoppable. PAGE 17 The New York Fashion Week parties continued, with a fete celebrating Jen Brill and Olivia Kim’s collaboration with Cole Haan among the highlights. PAGE 18 There’s apparently dissension among the owners of J Brand about whether the time is right to sell the company. PAGE 19 ON WWD.COM MODEL CALL: Walking in her first New York Fashion Week, Dutch newcomer Odile Coco has been nabbing some big shows — DKNY, Erin by Erin Fetherston and Jenni Kayne. For more photos, see CORRECTIONS

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Nordstrom Sees Up to Nine Canadian Stores (WWD, 09/14/12)  

According to a survey by WSL/Strategic Retail called “How Canada Shops,” 64 percent of Canadians can still afford to shop beyond the basics...

Nordstrom Sees Up to Nine Canadian Stores (WWD, 09/14/12)  

According to a survey by WSL/Strategic Retail called “How Canada Shops,” 64 percent of Canadians can still afford to shop beyond the basics...