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FRIENDLY RIVALRY

TOMMY HILFIGER AND SIR PHILIP GREEN BOTH HOSTED PARTIES WEDNESDAY NIGHT FOR THEIR NEW L.A. STORES. PAGE 10

WWD FRIDAY, FEBRUARY 15, 2013 ■ $3.00 ■ WOMEN’S WEAR DAILY

Melancholy

Baby A little blue — and sexy too. Marc Jacobs has been feeling wistful lately and he took the mood to his fall runway on Thursday night. Luckily the results were anything but glum as Jacobs showed the most overtly glamorous collection of his career. Here, a tulle coat COLLECTIONS embellished with paillettes and a fox collar. NEW YORK 2013 For more on the collections, see pages 4 to 8.

FALL

NEW YORK COLLECTIONS RALPH LAUREN, PROENZA SCHOULER, CALVIN KLEIN AND MORE. PAGES 4 TO 8 FRANKFORT PASSES TORCH

Victor Luis to Drive Coach as CEO in 2014 By ALEXANDRA STEIGRAD NEW YORK — Victor Luis has a tough act to follow. Lew Frankfort, the heralded, longtime chairman and chief executive officer of Coach Inc., is handing the reins over to Luis, president of the brand’s international group, in January. Frankfort, the mastermind behind Coach’s success, will then transition to executive chairman, an advisory role that will focus on brand strategy. Before he takes over as ceo, Luis will serve as president and chief commercial officer, a role he was appointed to on Thursday, and he will remain in that post for the duration of the year. He also joined the board. In the new job, Luis will be responsible for all business units, merchandising, licensing, corporate strategy and consumer insights. Chief operating officer Jerry Stritzke and president and executive creative director Reed Krakoff will report to Frankfort until 2014. After January, they will then report to Luis. “This is an exciting day for Coach,” Frankfort told WWD. “It’s a result of a several-year succession process, which has led us to Victor Luis. I couldn’t be happier with the appointment. I’m looking forward to being tied at the hip with Victor during this transition process.” The change in top management comes at a critical time for Coach, which has embarked on an ambitious program of transitioning into a full lifestyle brand anchored in accessories. This will include a revamp of its stores, as well as the introduction of more women’s and men’s apparel and footwear. The new strategy comes as Coach faces increased competition from the likes of Michael Kors Holdings Ltd. and Tory Burch. Following the news of the management change, Coach shares slid 1.2 percent to $48.20 on Thursday. Frankfort, 66, has been at Coach for exactly half his life. The retail veteran started at the brand in 1979 as the vice president of new business development. In 1985, Sara Lee Corp. acquired Coach for $30 million. That year, Coach’s sales were $19 million SEE PAGE 12

Shake-up in Mass Beauty By MOLLY PRIOR

PHOTO BY GEORGE CHINSEE

THE BEAUTY RETAILING industry was rocked for the second time in a week when Chuck Rubin, Ulta Beauty’s president and chief executive officer, said Thursday he will leave his post for the top job at Michaels Stores Inc., effective Feb. 21. Rubin is the second top-tier merchant to flee the beauty space. On Monday, Walgreen Co.’s Joe Magnacca, the architect of Duane Reade’s upscale and ground-breaking beauty concept Look Boutique, assumed the ceo role at RadioShack Corp. Both Rubin and Magnacca, formerly executive vice president and president of Daily Living Products and Solutions at Walgreens, were widely seen as two of the most impactful executives within the industry, and were frequently touted by vendors and Wall Street for their ability to foster bold change within well-established organizations. “They are both rock stars and it is sad to see them leave the industry,” said Ido Leffler, cofounder of Yes To Inc., which distributes its personal care products to both Ulta and Walgreens. As for who might replace Magnacca and Rubin, Wendy Liebmann, founder, ceo and chief shopper at WSL Strategic Retail, said the candidates must have special skills in dealing with the new emerging realities of contemporary retailing. “Both of these retailers live in this new, emerging and blurring beauty world. They need to be able to continue to build credibility with brands at every price point,” she said. Rubin took over the top post at Ulta in September 2010, four months after joining the company as president SEE PAGE 9


WWD FRIDAY, FEBRUARY 15, 2013 9 WWD.COM

beauty

Rubin, Magnacca Exits Send Tremors Through Industry {Continued from page one}

Chuck Rubin

Joe Magnacca

SIRIANO PHOTO BY JON GURINSKY; RODARTE BY TODD MATARAZZO; ALL OTHERS BY KYLE ERICKSEN

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BEAUTY’S BEST

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8 FRIDAY: JASON WU

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10 SUNDAY: DIANE VON FURSTENBERG

SATURDAY: CHRISTIAN SIRIANO

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12 TUESDAY: RODARTE

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11 MONDAY: DONNA KARAN

RUBIN PHOTO BY MATTHEW BORING; MAGNACCA BY JOE CALABRESE

[Rubin] is phenomenal at motivating and he was a leader who added great discipline.

FASHION WEEK: Backstage looks at the New York shows took a cue from the decorative arts — from playful pops of color to embellished hair. Here, the best of each day.

turn things around you get offers. I think Barry Shields, managing partner of the he could write his own ticket. He took Innovative Beauty Group, which launched Walgreens at a time when they were cutting its Red Carpet Manicure line at Ulta. stockkeeping units in beauty. He had to sta- “Under Chuck, Ulta set a new standard in bilize cosmetics and bring it back. With the beauty retailing. Their culture is just betLook Boutiques, he’s taken the store back to ter and different than many companies.” However, RBC Capital analyst Jason being a viable alternative to Ulta — a great option. Walgreens can no longer compete Gere warned that investors may not welwith Wal-Mart and Target on a price basis. come the recent executive changes at I think Joe’s departure will hurt.…I don’t Ulta. “The fundamentals [at Ulta] and the story is still quite solid, but the consistent know who could replace him.” As for the impact he may have on change in management is a little surprisRadioShack, Mottus said, “He is shrewd ing,” said Gere, noting that Ulta has had and he could turn it around with mer- two different ceo’s and two chief financial chandising and cosmologist-like trained officers since 2006. Bruce Hartman took over as cfo in September, replacing Gregg people. That’s in his wheelhouse.” At Ulta, Rubin sought to make cultural Bodnar who had held the post since 2006. “Investors may be changes, favorquite skittish until ing a meritocracy a new ceo is in over consensus place,” said Gere. building. Earlier Ulta’s shares this month, he told declined 11.75 WWD, “At Ulta, we percent to reach across lines close at $87.80 and deep into the Thursday, folorganization, top lowing the comdown and botpany’s morning tom up, and have announcement. some really good — BARRY SHIELDS, Rubin joins collaborative, diMichaels at a pivrect conversations INNOVATIVE BEAUTY GROUP otal time for the about what we can arts and crafts do better and congratulate ourselves on what we do well al- chain, which has ambitions to go public. ready. People who continue to get invited Michaels — owned by private equity firms into those discussions have demonstrated Bain Capital Partners and The Blackstone that they have the intellectual capacity, Group — filed a registration statethe drive and the passion to contribute. ment with the Securities and Exchange That is meritocracy. That’s how people get Commission on March 30. According to a seat at the table, and that’s how they get the filing, in fiscal 2011, Michaels had revenues of $4.2 billion and 1,196 stores. acknowledged and rewarded.” The job requires Rubin to relocate for Given the momentum Rubin had built at Ulta, his plans to leave surprised both the third time in three years, as Michaels is based in Irving, Tex. Prior to moving venders and analysts. “He is phenomenal at motivating to Illinois to join Ulta, Rubin lived in and he was a leader who added great Florida while at Office Depot. discipline [to Ulta].…There are few re— WITH CONTRIBUTIONS tailers posting the gains Ulta has,” said FROM FAYE BROOKMAN

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and chief operating officer from Office Depot, where he last served as president of the North American retail division. He continued the vision mapped out by his predecessor, Lyn Kirby, of housing mass, prestige and salon products under the same roof, but then stepped on the gas when it came to strategy. Rubin aimed to more than double Ulta’s current door count of 550 units to 1,200, up from the previous target of 1,000. And while the chain’s same-store sales continued to gain at a steady clip — comps rose 8.4 percent for the quarter ended Oct. 27 — Rubin increased Ulta’s square footage at a rate of about 20 percent a year (or more than 100 doors a year). While Rubin molded Ulta into a challenger of the dominant Sephora, Magnacca has been credited with singlehandedly changing the face of drugstore cosmetics merchandising. A native of Canada, Magnacca arrived in the U.S. in 2010 from Shoppers Drug Mart to take on the top-to-bottom overhaul of the metroNew York drugstore chain Duane Reade. He was a central figure in the bold transformation of Duane Reade, where he served as chief marketing officer and later as president, and helped revamp the retailer from a overstocked, uninviting chain into a fleet of sleeker stores with wider aisles, natural light and a more focused and upscale assortment. Its flagship locations are outfitted with sushi bars, frozen yogurt bars and manicure bars. The changes helped to attract the attention of Walgreens, which acquired Duane Reade in 2010 and promoted Magnacca to executive vice president and president of Daily Living Products and Solutions. In that role, he oversaw marketing and merchandising operations across more than 8,000 stores. Magnacca received the executive vice president title on Feb. 1. “He’s hot,” said industry consultant Allan Mottus of Magnacca. “When you

13 WEDNESDAY: MICHAEL KORS

14 THURSDAY: MARC JACOBS

Beauty Retail Industry Rocked by Exec Departures (WWD Issue 02/15/2013)  

As for who might replace Magnacca and Rubin, Wendy Liebmann, founder, ceo and chief shopper at WSL Strategic Retail, said the candidates mus...

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