WWD: Women's Fashion Sales Face Challenges

WWD | DAVID MOIN

NEW YORK — As designers gather at tonight’s CFDA Awards at Lincoln Center, the women’s fashion business is at a crossroads and creativity has never been needed more.

The flagging women’s apparel business is primed for a jolt.

It’s accepted fact that shoes and bags have lit up the industry for several years now, and that’s not expected to change anytime soon. Too much stuff with too little imagination has women’s apparel pretty much adrift in a sea of sameness. Women’s wear sales have been dragging since well before the recession. Of equal concern is that there appears to be no easy answer to fixing the problem.

Even as retailers appear to be crawling back with improved profits and sales and growing cash reserves, women’s apparel has not been leading the way. Instead, accessories such as shoes and handbags are now the star performers — and are likely to remain so for the foreseeable future. And if the malaise in women’s apparel remains prolonged, it will have a huge impact on what and how much stores buy, the space they devote to apparel and the ability of new designers to break through into the spotlight.

“Fine apparel is particularly challenging right now,” Neiman Marcus president and chief executive officer Karen Katz told WWD last week, just after the luxury chain reported a 35 percent profit gain in the last quarter. “For us, this was really the first quarter where we experienced a change. It’s not a price issue.  There are lifestyle changes. Customers have been very discerning. They want something very unique, very fashionable, something lasting for her wardrobe.”

Designer labels that read a bit more casual are doing well, Katz  added. However, “We have to rethink how we edit the designer collections.”

“Certain areas of women’s apparel, contemporary, sexy and flirty are doing extremely well. Certain areas with classic brands aren’t doing as well,” Saks Fifth Avenue chairman and ceo Stephen I. Sadove said in an interview. “Overall, the women’s business is healthy, but it’s being driven more by fashion — where it’s more contemporary. Some brands are more suited. More formal may not be the way people are dressing. That is a change in taste.”

Even designers admit women are increasingly finding it tough to find clothing they want to wear, since they now are looking for clothes that can as easily go from work through dinner.

“It’s really important to realize that today, women have one wardrobe. Years ago, they would have a wardrobe for work and a wardrobe for weekend clothes,” said Gary Muto, president of Loft.

The bulk of the business — designer apparel, classic and traditional sportswear, suits and tailored looks, outerwear, basics, misses’ and juniors — has been in the doldrums for some time, although contemporary sportswear, dresses, knitwear, skinny jeans and colored denim experienced good gains. Statistically, there’s little question that women’s apparel overall lost ground, or had minimal growth in the past year. According to The NPD Group market research firm, women’s apparel in the U.S. rose just 2.9 percent to $80.16 billion last year, a figure that includes inflation, which distorts real growth, and is low compared with mid-to-high-single-digit gains retailers posted for their entire businesses.

In 2011, dresses rose 17 percent to $10.9 billion, though suits were down 17.9 percent to $1.02 billion; jackets slipped 0.1 percent to about $1.7 billion; pants dropped 0.6 percent to $2.97 billion; jeans declined almost 3.3 percent to $7.79 billion, and coats fell 3.4 percent to $2.07 billion. Women’s accessories did better, rising 3 percent to $34.92 billion and sweaters rose 5.6 percent to $11.05 billion. Women’s footwear was up just 0.5 percent to $25.04 billion.

“The volume areas for business in women’s apparel are failing in relationship to other areas,” said Marshal Cohen, chief industry analyst for NPD Group. “Women have dramatically changed how they perceive the importance of sportswear. They’re buying across a much wider range of products. The fashion industry has been out-fashioned by every single other industry where consumers spend money. There’s more fashion in food than apparel.”

For several seasons, Nordstrom Inc. has been unhappy with its women’s apparel business. Pete Nordstrom, president of merchandising, said this spring some “pockets” in women’s performed better than others and cited the modern and casual sides and “good growth” in activewear and lingerie, which in many cases are getting increased space on Nordstrom’s selling floors. He also said by the next conference call the company will have hired a new general merchandise manager in women’s to succeed Loretta Soffe, who quietly left in January, reflecting the difficulties.

Moderate chains are also challenged, like J.C. Penney Co. Inc., which is reinventing and has been plagued by basics that don’t sell. Gap Inc., which has been enduring multiyear turnaround efforts, showed some life this spring by capitalizing on the bright color trend but needs to find a new identity. Sears Holdings Corp. remains prosaic and requires a fashion overhaul. The Bon-Ton Stores Inc. is trying to find the right balance between updated and traditional. Wal-Mart Stores Inc. perennially has problems selling anything but basics in apparel. The Talbots Inc., which was just sold to private equity firm Sycamore Partners, thereby escaping a potential bankruptcy, needs to find a contemporary look to reclaim its mature clients that defected to Chico’s FAS and elsewhere. Amongst the younger set, Urban Outfitters Inc. and the nation’s slew of youth chains seem to be cannibalizing each other.

Retailers, consultants and designers queried over the past year said the apparel industry is beset by too much inventory, insufficient innovation, sameness and a failure to keep up with the changing lifestyles of women. Most apparel, they said, lacks the right stuff, which boils down to value, quality that lasts, and versatility, meaning looks that are equally suitable for work or dinner afterward, or as wearable for weekday or weekend occasions. It helps when products are tied to social, environmental or health awareness causes.

“There’s an enormous amount of distribution. Everyone is carrying apparel, including sporting goods chains and drugstores,” observed Janet Grove, who was chairman and ceo of Macy’s Merchandising Group from 1999 to 2009. “With the resurgence in dresses, sportswear gets diminished.  The biggest thing that affects the success of sportswear is to react quickly to selling. It’s the Zara model. The more structured careerwear has kind of gone away. All these things go through cycles.”

Fashion experts also said money once spent by consumers on ready-to-wear and sportswear is shifting to accessories and shoes, two categories increasingly associated with fashion, status and innovation. Dresses, too, for the last four years have been on a run because they’re simpler and easier to put on than suits or sportswear outfits, and it’s a look that can be easily enhanced with cardigans, status handbags and shoes. But last fall, over lunch at the start of New York Fashion Week, a veteran fashion director lamented the women’s fashion business, summing up what seems to be an industry malaise. Shopping the women’s market, said the fashion director, “is just not so much fun anymore. There’s not that much creativity.”

Allen Questrom, the stylish former chairman and ceo of Penney’s, Federated Department Stores Inc. and Barneys New York, echoed the sentiment. “I don’t see much out there that’s new and different. There’s a lot of stuff. If something is new and different, people will buy it. When the iPod came out, nobody asked about the price. They lined up to buy it.”

“I shopped all the major stores in New York last week. There was a ton of merchandise and it was singularly unimpressive,” said Gregor   Simmons, a New York-based buying consultant for retailers. “Contemporary apparel really drives the women’s business. It takes inspiration from designer, gives you fashion, and it’s not a luxury price point.” Otherwise, “a big chunk” of women’s apparel is in the doldrums. “There’s an overassortment of labels that tend to copy each other.”

“I think the preoccupation by many manufacturers and designers to cost-engineer to make up for big price increases in raw materials and labor has resulted in a reduction in innovation and creative product development,” observed Arnold Aronson, managing director of retail strategy at Kurt Salmon Associates. Sucking costs out of apparel production, more often the case in moderate merchandise rather than high-end apparel, leads to less detail, like fewer buttons, and less interest from consumers, Aronson said.

Some see women trading down by shopping stores like Forever 21, Uniqlo and Zara that provide alternatives and could be taking sales away from traditional department stores and older specialty chains. However, Express ceo Michael Weiss said, “I don’t believe women trade down in quality but do want to spend less. They might buy fewer Christian Louboutin shoes but will still buy them.”

In terms of square footage, women’s remains the most important category occupying more square footage than any other, though stores have been adding square footage in accessories and shoes. “There’s been a real shift to accessories for many women shoppers. They realize they can update a wardrobe through shoes and handbags. Shoes are becoming more and more distinctive in design and style,” said consultant Robert Burke.

“I still believe the only way to be successful in apparel is to be successful in women’s wear,” said Lisa Schultz, executive vice president of apparel design at Sears, taking a somewhat different take.

In an era of cross-shopping, with consumers not particularly loyal to one retail tier, the price spectrum of brands that continue to do well shows the challenge faced by department and specialty stores. At one end are labels like Balenciaga, Prada, Oscar de la Renta, Versace Collection, Armani Collezione and Akris Punto, while Milly, Lafayette 148, J. Crew, Diane von Furstenberg, Tory Burch, Valentino Red, Helmut Lang, Moschino Cheap & Chic, BluGirl Bluemarine and Eileen Fisher are among those doing well in contemporary. Then there are the standouts among the mass or casualwear end, including Lululemon, Land’s End, and Joe Fresh. The private-label business is growing, with stores like Macy’s, Belk and Saks increasing the presence of in-house brands.

“The customer is voting on newness,” said Kathy Bradley-Riley, senior vice president and general merchandise manager at Doneger Group. “Merchandise that is close to something she owns or is reminiscent of last year, she chooses to pass on.” But there are definitely bright spots, Bradley-Riley noted, citing printed sheer tops, dresses that are increasingly visible amid sportswear collections, shapes that seem new such as uneven hemlines and lace and crochet trims. “She is reacting to anything that is feminine, and buying a lot of modern fashion-right product. Traditional, classic has been more challenging.” Regardless of the shopper’s age, “she is definitely thinking younger.”

“The business in women’s rtw is more uneven than accessories, jewelry, men’s and home,” acknowledged William Taubman, chief operating officer of Taubman Centers Inc. “There are entire theories revolving around why this is happening, but I would say customers are reaching an age where they’re buying less clothing and lifestyles are changing.” For many retail tenants in the malls, core sku’s have been declining because of lifestyle changes, Taubman noted. “The suit used to be a basic, and when women were wearing suits, the handbag took a backseat. If you take the suit away and don’t have to wear it, the handbag can be more of a statement.

“It’s been really difficult for some operations to restructure their core offerings.”

FINANCIAL TIMES: Flagship stores: Groups look east as clients head west

FINANCIAL TIMES | ELIZABETH PATON

Flagship stores have long been lossleaders for the luxury industry. Brands’ retail investment has soared in recent years, with projects becoming increasingly elaborate and expensive in the quest for patrons and profits – but entailing costs that are rarely recouped by sales.

Yet, from a state of unanimity, debate has ignited as to how necessary flagships will be to brands in the future. Now that more than 50 per cent of luxury purchases are made by tourists visiting the west, brands could scale down their rollout of supersized stores once consumer visits level off in emerging markets.

“Who needs aggressive store expansion when customers are happy to jump on a flight to London, Paris or New York?” says Aaron Fischer, head of consumer research at Asian brokerage CLSA, noting that the luxury sector’s capital expenditure to sales ratio has slipped from 7 to 5 per cent since 2009.

Others are not so sure. Burberry, Prada and Louis Vuitton, respectively UK, Italian and French fashion labels, have led an explosion in international flagship openings over the past year, still clearly convinced of their long-term financial dividends.

IWC opened a 3,000 sq ft store on Madison Avenue in New York last month, its first US flagship. The Swiss watch brand spent years searching for the perfect location, staff and aesthetic. Each timepiece collection has its own themed sector, where books, boats, an aquarium and even an in-flight simulator surround products.

“Opening a US flagship was the obvious next step in our expansion strategy,” says Georges Kern, chief executive of IWC. “Inevitably, costs are high, but it’s only a decision we would take [having considered] the maturity of the company and whether we could afford it. It’s an important way of gaining brand equity and consolidating positioning in a core market. I would never open a flagship unless I was convinced of its profitability.”

The store’s experiential, interactive quality has buoyed sales. The longer a customer stays on-site engaging with a brand, the more likely they are to spend, which explains the art exhibitions, film screenings and cafés often found in luxury flagships.

“We use flagships to showcase our evolution into a multifaceted lifestyle brand, bringing our universe to life while placing products in an explanatory context,” says Fabio Mancone, director of licensing and communications at Giorgio Armani, the Italian fashion group.

“In an age where online shopping is becoming dominant, a flagship store is a perfect example of how the theatre of the physical, rather than virtual shopping, can still excite a crowd.”

Armani says that profitable impact goes beyond business-to-consumer marketing and education. Wholesalers in new regions see the investment as a sign of confidence in the brand’s appeal, resulting in notable order boosts following flagship openings.

Peter Marino, a New York-based architect, has designed dozens of flagships for LVMH and Chanel, the French luxury groups. He is convinced the boom in tourist traffic from countries such as China and Russia has reinforced the need for luxury brands to up the stakes in their retail strategies.

“The more mobile the customer base, the shorter the lifespan of a flagship,” he says. “Once, a store could have remained unchanged for a decade; now they look dated faster. The Asian customer in particular is extremely savvy, with incredibly high expectations. Everything must be bigger, newer, lighter and brighter.”

Mr Marino says the lasting impact of a flagship visit can be far stronger than advertising campaign exposure, making it worth the millions spent.

Furthermore, given that flagships are often operated directly by the luxury company itself, they are an easier means of brand control, while still making a statement and gaining traction in a new environment. Still, due diligence remains vital.

Robert Burke, founder of Robert Burke Associates, a luxury brands consultancy, says: “Many brands have been burnt financially by initially underestimating the complexities of foreign markets, be it through picking the wrong local partners, heavy taxation or investing too much too soon in ambitious retail strategies.”

Large-scale operations in India have stung several luxury labels in recent years. Overhasty investment after flagship successes in China has produced heavy losses, followed by a quiet downsizing of operations. Meanwhile, the dismal results reported by Abercrombie & Fitch, the US retailer, this month were attributed primarily to spending too much too soon on weak European flagships.

Inevitably, the size of the luxury group dictates the impact of the successes and failures of a flagship on its books. For smaller brands, flagships run the risk of becoming white elephants, unable to cover rent, staff and construction costs should customers’ minds – and wallets – wander.

Antoine Belge, luxury analyst at HSBC, the bank, says: “Big brands are more secure. Most have had flagship chains for some time, so gradual openings won’t significantly affect financials.

“However, they tend to be less profitable than regular stores, taking two to three years to break even, versus the average of one year. Still, this can be compensated for in other ways, such as building long-term engagement with a customer base.”

Armani’s Mr Mancone agrees companies must be open-minded when quantifying return on investment, arguing it is one of the luxury world’s defining idiosyncrasies.

“Building a successful fashion brand requires acceptance that one will not always get immediate returns from investment – just look at the example of fashion shows. Measurement must go beyond sales and encapsulate value gained from the lasting impact of a meaningful connection with luxury’s 21st century customer.”

WWD: Fendi's Baguette Takes Center Stage

WWD | MILES SOCHA

PARIS — It’s baaack — the original “It” bag, that is.

Fendi’s Baguette — the shoulder jewel that helped ignite the luxury handbag craze and propelled a bidding war for the Roman house — is back in the spotlight. Next month will see the launch of a 345-page Rizzoli tome chronicling the Baguette’s history, and limited editions of six of the bag’s most famous iterations are slated to arrive in Fendi boutiques worldwide, followed by a series of in-store events.

The initiatives, marking the bag’s 15th birthday, also signal a strategic thrust for the company, where new chairman and chief executive officer Pietro Beccari is putting Fendi’s iconic products at the forefront of development. The move echoes some of the work he did in his previous role as executive vice president at Louis Vuitton, where a Core Values ad campaign lit a flame under Vuitton’s historic monogram leather goods.

“In this time of a quick-changing, fast-paced world, it is important to remain close to one’s roots and values. The Baguette represents the perfect expression of this and of Fendi’s DNA,” Beccari told WWD in an exclusive interview, his first since joining Fendi in February. “It’s probably true that the Baguette was the bag that invented a fashion for bags and probably initiated the so-called ‘It’ bag phenomenon. But thanks to its unique shape that embodies the whole history of a maison, the Baguette has evolved into a timeless piece.”

Although Beccari declined to talk numbers, market sources estimate Fendi has already sold close to a million units of the slim-lined purse, small enough to tuck under the arm like a loaf of French bread. Fendi Baguette bags retail from about $1,000 up to $3,000 and more.

“It was very spontaneous. There was no marketing plan around this bag,” Silvia Venturini Fendi recalled about her 1997 invention, characterizing it as a reaction to minimalism. At the time, she recalled that handbags were mainly functional objects, frequently black and often “boring.”

“They were treated like accessories and very separate from fashion. You didn’t see many bags on the runway, only in the showrooms,” she said.

In 1999, LVMH Moët Hennessy Louis Vuitton and Prada teamed at the height of the luxury acquisitions boom to take a 51 percent stake in Fendi, valuing the company at $950 million. In 2001, LVMH bought Prada’s 25.5 percent holding for about $260 million and has subsequently bought out all minority shareholders.

Beccari noted that Fendi never stopped selling the Baguette, and has since turned out more than 1,000 versions of the style, in materials ranging from fur and sequins to crocodile skin. The reeditions include a denim style embroidered with flowers, and another pavéd in colorful embroideries and small mirrors. He credits the handbag’s diversity for its longevity.

“The fashion world is right now saturated and bombarded by real or presumed ‘It’ bags,” he said. “But for a long time, the Baguette has abolished the ‘fashionable’ handbag convention, the one that provided the same handbag for everyone, a coveted object to be flaunted in its uniformity.”

To be sure, the “It” bag phenomenon — exemplified by the Baguette — has waned in recent years, industry observers agreed.

Pamela Golbin, chief fashion curator of fashion and textiles at Les Arts Décoratifs in Paris, said the trend was a reaction to the minimalist fashions pioneered by Belgian designers and Austrian Helmut Lang as the millennium approached. “There was no decorative embellishment. It was the perfect time for accessories to become the central part of the wardrobe,” she explained.

Today, “there’s more of a balance between accessories and clothes,” she stressed, characterizing the handbag as a “very desirable object,” but without the hysteria that once engulfed it.

According to Robert Burke, president and ceo of consultancy Robert Burke Associates in New York, shoes supplanted handbags as an obsessional focus in recent years, possibly because they are less expensive amidst ongoing economic turmoil. In handbags, consumers have been gravitating toward quieter styles “with a little more longevity,” Burke said, noting that, “Hermès hasn’t suffered during the economic crisis.”

Burke stressed that there are pitfalls to “It” bags, principally the risk of demand withering once the market becomes saturated.

“When an ‘It’ runs out, it can come to a screeching halt.…Growing strategic businesses in prudent ways is probably where brands are leaning more today,” he said. “I would rather have a brand with a strong category of business rather than an ‘It.’”

Burke cited Celine, Givenchy and Valentino among European brands that have done a good job building a solid accessories business, and placing limits on distribution.

According to sources, top luxury players like Chanel tightly control quantities of their most in-demand handbags so as to not  endanger their coveted status.

For his part, Beccari stressed that, “Fendi wants to go for a less compulsive and feverish consumption.”

Venturini Fendi recalled that she approached the Baguette bag like the Roman house does its furs: with an eye to high craftsmanship, surprising techniques and being “a bit subversive.”

She attributes the success of the Baguette to multiple factors. Its short strap and diminutive size were counterintuitive to the functional, even ergonomic approach of what was on the market in the Nineties. The fact that it came with a multitude of embellishments was a welcome reprieve from the monotony and uniform nature of fashion then. “We were all dressed like black spiders,” Venturini Fendi recalled.

Scarcity helped, too.

“Fendi was small at the time. You couldn’t find the bag so easily and that made it precious. It started to become like a fever,” Venturini Fendi explained. “I always say: It was the right bag at the right moment.’”

The Baguette also foreshadowed the use of celebrities as marketing vehicles for leather goods, although Venturini Fendi insisted all of its famous devotees came calling, not the other way around. Among the first was Madonna, snapping up several Baguettes at the Rome shop. Then came a call from Patricia Field, who asked if she could borrow some for Sarah Jessica Parker’s new series, “Sex and the City.”

“It’s like a marketing case study, but really it wasn’t,” Venturini Fendi marveled.

Parker, among contributors to the Rizzoli tome, notes that Fendi was the first big design house to loan the show items for her character. “It really opened the floodgates and influenced the story line — especially Carrie’s habit of spending more on fashion than her home,” she writes. “Once Fendi loaned us items, everyone was more willing to do so, which helped us dramatically in conveying Carrie’s decadence.”

Asked if the “It” bag phenomenon still persists, Venturini Fendi said she detects an almost opposite trend.

“We have seen so many bags, so many companies that weren’t leather goods specialists making bags,” she said in an interview. “I think everyone was trying —sometimes too hard — to do ‘It’ bags.”

The consequence? “We want real bags again. We’re going back to leather,” said Venturini Fendi, noting this impulse yielded the Peekaboo bag, a discreet framed handbag she likes best in hand-stitched Selleria leather. “I think we are in a moment where we want simple or very, very high design…the most exquisite leather…or something surprising, colorful, crazy and different.”

To that end, Fendi in 2008 mounted a design competition in Asia called “Design Your Dream Baguette” and commissioned one-off versions from famous artists, including Jeff Koons, Damien Hirst and Richard Prince, that were auctioned off for charity.

“I’m not so obsessed by the next ‘It’ bag,” said Venturini Fendi. “I just want to follow the same path: doing things with freedom, and experimenting a lot. It’s the only good recipe.”

WWD: Bridget Foley's Diary: A New Day for Robert Lee Morris

WWD | BRIDGET FOLEY

Question: How did you find the Artwear artists, did they come to you?

Six-hundred-fifty uninterrupted words later, Robert Lee Morris has discussed judging talent; artistic patronage; rule-breaking; fearlessness; CFDA awards; the “artist mentality, breaking the rules, changing the way things are”; agents of change; Virginia Wolfe; “the Occupy Wall Street people, the Marc Jacobses, the Pamela Loves”; wayseers.org founder Garret John LoPorto; Bob Dylan; Albert Einstein, and “things [that] can happen in your relationship with the universe that says, ‘You can rest now, if you want to rest [or] take another stab at it from a different angle. Hey, how about we try making a real brand out of you, like a brand that would be a world brand?’”

The gift certain creative types have for articulating large truths as they perceive them and bringing them back to the merch is just one more thing to love about fashion, particularly when you buy into the genuineness of message, if not necessarily the message itself, in full.

Morris is genuine, and, some might say, out-there. The founder at the age of 23 of an artistic commune in Wisconsin, where he began developing the sculptural, sensual metalwork that would become his signature and make him a fashion-world sensation, speaks softly as he delivers heady thoughts. Spirituality, ancient influences, the natural world and futuristic musings shape both the person and his work, while dominating his conversation — even as he embarks on a new and critical phase of his brilliant, if up-and-down career, now in its fifth decade.

Before Alexis Bittar, before Eddie Borgo, Lisa Jenks, Pamela Love and even Tom Binns, Morris forged a major fashion path for jewelry while insisting on its core artistry; those who followed are indebted. Before the CFDA Incubator — for that matter, before the CFDA cared enough about young designers to incubate — Morris conceived, assembled and nurtured the artisinal jewelry gallery Artwear.

He is a true trailblazer whose renown and influence far exceed the scale of his business. Though never technically out of business, turnover has been tiny for years, including through the transition between owners; last July, Haskell Jewels bought the company from Clover II.

Today, market officially opens on a major relaunch, and Morris couldn’t be happier. He discussed his new situation recently at his new base, a compact three rooms situated in the Haskell headquarters at the end of a long corridor, past the showrooms for the company’s other jewelry brands — Miriam Haskell, M. Haskell, Betsey Johnson, Kenneth Cole and Simply Vera for Kohl’s. Though he moved in only last month, it looks and feels like a space long-occupied, filled with the treasures, results, books, tools and some of what some of us might call junk, of a lifetime of acquiring, scavaging and creating. When Morris packed up his longtime studio downtown, he originally wanted to take only the essentials and send the rest home, but the process proved overwhelming. Except for a serious edit of the books, it all came uptown, where it makes for daily rediscoveries.

Artifacts range from the childhood treasures of an Air Force brat to a small statue that was his father’s — Hercules wrestling an unidentified king, the latter, Morris points out, “yanking his…” Ancient-looking metalwork — a primary inspiration — is everywhere. Morris found the piece of a cow’s skeleton on his property in Sante Fe, N.M., and a sculpture of a boat was crafted years ago by a beloved professor-mentor. One room seems too visually overloaded to lend itself to the stated purpose of meditation room; a seating area was, he says, “made into this Zen garden place for me.” The most visually calm part of Morris’ fiefdom, the showroom, couldn’t belong to anyone else. On view: multiple CFDA and other awards sharing counter space with demonstrative display pieces including vertical metal tubing and signature female torso sculptures (“How can you get tired of the human body?” Morris muses), all foils for the kind of bold metal collars, cuffs and rings on which he built his reputation. These include versions of archival pieces as well as new designs. It all looks impressive and of the moment.

Morris’ assessment: “Perfect. My experience with contractors is that it takes a lot of back and forth before they get it, and the work [first] comes in lighter or crappy. This came in better than I could ever imagine. Look at this cuff! To me, it was like the universe [took me to] the right spot. Finally.”

That right spot is total ownership by Haskell, which bought all the company’s assets, including trademarks; SoHo store; department store and QVC businesses; archives, and any future new categories into which Morris might forge. That’s fine by Morris, who has not been the master of his own business destiny since 1998, when he sold his company to M. Fabrikant & Sons, which partnered with Clover Corp. but subsequently sold that firm in 2006. The purchaser of Clover Corp. then formed Clover II. The situation never panned out at the high end, though the QVC business has fared well. “We were not growing, we were shrinking, and my potential and my vision was bigger than that, and I stood really strong,” Morris says. “When I got here, I had a fire under my butt.”

Haskell principal Frank Fialkoff views Morris as a shining presence within his stable. “We feel we acquired a real, true American icon designer,” he says. The two go way back. In the mid-Seventies, Morris consulted on the Pierre Cardin collection at Swank and, later, on Karl Lagerfeld at Victoria Creations. In both situations, Fialkoff was president. He became interested in buying Robert Lee Morris after learning of its availability from his accountant. “It came to me, it was the opportunity I’d really been waiting for,” Fialkoff says. “To have a vehicle with a true designer, something I owned top to bottom so I could control it — distribution, licensing, everything, and really build a business.”

Under Haskell, the brand features an “iconic core” and three fashion collections per year. Much of the former is comprised of Morris’ highly recognizable classics; the latter, of themed groups. Prices have been adjusted downward, now $150 to $1,000 for most pieces, though there will be some more expensive one-offs. Morris attributes this adjustment to the fact that he will no longer work in through-the-roof silver but in plated brass finished with various patinas. “I’m giving away a secret,” he says, anticipating others to pick up on the color idea. “You can plate in green and in copper and in all these colors — warm bronze, tobacco, shades of black and steel — so you have a symphony of colors. They have weight and they’re flexible.” Of the launch fashion groups, French Cuff, based on overlapping points, was designed for Donna Karan when Morris rejoined her for a runway season a few years back and the collection was never produced. Galactic is an exploration of spheres and “the whole idea of futuristic mechanisms — futuristic armor,” he says.

Morris’ story is well-known, though one chapter gets the lion’s share of the attention. Most people think first of his now-legendary collaboration with Karan; his arresting, powerful metal jewelry and other hardware were as integral to her early aesthetic as the jersey “easy pieces.” Their relationship started at Anne Klein. When Karan went out on her own, she asked Morris to work with her. “So many people have said to me, ‘I was the first one to ever discover you when you and Donna did that collection [in 1985],” he recalls. “I always want to say, ‘I guess you missed the first 10 years or so.’” By the time he started with Karan, he’d won the Coty Award and worked with Calvin Klein, Geoffrey Beene and Kansai Yamamoto.

Morris calls his time with Donna Karan and other collaborations “euphoria.” (Calvin, he muses, was “a party.”) “Whenever you’re working with a group in a harmonious way, creating something all together is euphoric. So being with Donna for all those years was euphoric. Being with Lagerfeld for a brief period of time was euphoric. When it all works together in the end and you have to skin yourself alive to get there, it’s worth it.”

In the nine years with Karan, he recalls, “we made a very strong impact and statement in fashion and jewelry.” The mood changed in the early Nineties, as the company grew and the pressures of doing two collections increased. Morris was about to move to New Mexico and become a shaman — by that point, he’d studied shamanism for 13 years — but then met his wife, who had no interest in the Southwest, and they stayed put in New York. But more had changed than the pressure to produce; fashion jewelry became virtually nonexistent on the runways as heroin chic ruled. It was, Morris says, a dismal time. He credits Tom Ford with forcing its comeback during his Gucci heyday: “He showed Halston-esque, Perreti-esque, Donna Karan-esque, Robert Lee Morris-esque stuff, and suddenly there was this huge explosion. FIT came calling for a retrospective.”

A decade-plus later, in 2007, came the CFDA’s first Geoffrey Beene Lifetime Achievement Award and, the following year, Ashley and Mary-Kate Olsen asked him to do a collaboration for their Elizabeth and James line. The Olsen connection, he says, “exploded my name to a whole new group of people who didn’t have a clue who I was. I found myself getting reinvented over and over again.”

Morris clearly appreciates being appreciated. He points out that the Olsens credited him as a mentor in their 2007 book; similarly, Kris Ruhs, a former Artwear artist, cited Morris in his tome.

Through Artwear, Morris was in on the transformation of SoHo from its pre-gentrification condition of edgy-industrial grit to, first, a thriving artistic community and, then, a tourist-centric retail mecca. He opened the store on Madison in 1977 but moved it to lower Broadway, “a magical space,” the following year. There he spent Sunday mornings from 9 to 12 looking at the work of jewelry makers — even today, he insists he’s not a jewelry designer but an artist who makes jewelry — giving thumbs up or down as he saw fit, and supporting the best of the former, even when the jewelry didn’t sell. He notes that point of departure between traditional retail and genuine patronage, and the thought triggers his long commentary on what it means to be an agent of change. “It’s dawned on me in a very simple sense, what I’m doing all this time is that I’ve been an agent of change, and I’m attracted to other people who are agents of change, and they are the ones who are leading the country right now.”

That said, his most immediate anticipated change concerns serious growth of the business. Industry sources say volume could grow from next to nothing to $10 million within two years, after which, assuming strong design and proper nurturing, growth could skyrocket. “We’re reintroducing Robert,” Fialkoff says. “We’re giving him all the resources he needs: the manufacturing, the sourcing, the advertising, any help he might need in design, and to relaunch the jewelry in the finer stores globally. And then we’ll follow up with other products that make sense.” He mentions watches, possibly next year. Morris says there could eventually be handbags, eyewear, a fragrance.

The firm enlisted Robert Burke as a consultant for the launch and beyond, and is close to signing with a major advertising agency.

Morris feels confident the universe had taken him to the right place. “I’m a very big part of the fashion world,” he says. “But on the other side of me, I’m wild, free, antiestablishment. I have the passion of a kid still. I don’t want to spend time in another board meeting, because I’ve got work to do and I’ve got things in my head that want to come out in material form. I don’t want to waste my time going to too many trunk shows, because I’d rather be back here making.

“I know,” Morris continues, “this launch is going to be huge.”

FINANCIAL TIMES: New look for a rediscovered gem

FINANCIAL TIMES | VANESSA FRIEDMAN

On Monday night, the great and good of New York, Hollywood and fashion mounted the stairs of the Metropolitan Museum of Art, evening gowns sparkling, tuxedos tailored, paparazzi snapping, to attend the city’s social event of the year: the Costume Institute Ball, which celebrates the opening of a new exhibit devoted to the art of dress. This season it is “Schiaparelli and Prada: Impossible Conversations”, an imaginary give-and-take between the two Italian designers, the first of whom died before the second ever hit the catwalks.

Yet, far from being a relic of the past, Schiaparelli-the-brand is currently being shaped for the future. Five years ago, Diego Della Valle, chairman of luxury goods group Tod’s bought the trademark to the house. Though he has allowed it to stay relatively dormant until now, the Met Ball has served as a wake-up call to the business. “It is a big opportunity to have the name become known by a new generation,” says the 58-year-old, noting that, while he had no part in planning the show, it would be a mistake not to exploit such a platform.

He has recently signed up the brand’s first ambassador – someone who will embody Schiaparelli publicly for the future – in the form of Farida Khelfa, the French-Algerian model/actress and former muse to both Azzedine Alaïa and Jean-Paul Gaultier. He has also committed to a timeline to launch: this July he will unveil the renovation of the original Schiaparelli Maison in Paris at 21 Place Vendôme, three floors of atelier, apartment, archive and offices; in September, the company will name the new designer; and next March, during the ready-to-wear shows, hold the first runway presentation.

More important, however, with Schiaparelli Mr Della Valle is articulating a new approach to luxury. Instead of creating and showing between four and eight collections a year, Schiaparelli will have only two. Rather than launching as a “lifestyle” brand offering fashion, beauty, homewares and gifts, Schiaparelli will be limited to clothing, accessories and fragrance/body lotion.

Instead of creating entry-level products that allow for price elasticity, Schiaparelli will also be very expensive – higher, Mr Della Valle says, than top-priced ready-to-wear brands such as Chanel and Tom Ford. He identifies the clothing as “prêt-a-couture”: a new level somewhere between very high-end ready-to-wear and the made-for-you couture extravaganzas that cost from €20,000.

In addition, instead of being available worldwide, Schiaparelli will be sold only at Place Vendôme; there will be no wholesale, and no advertising.

Production will be largely done in Italy. Yet, Mr Della Valle says, just because the brand “is not commercial, does not mean it won’t be profitable”.

“It’s not the normal way to do things,” says Robert Burke, founder of an eponymous luxury brand consultancy. “Traditionally, relaunching an old brand involved a star designer, a big show and flooding the normal distribution channels. But then, Schiaparelli was never terribly normal in the first place.”

Elsa Schiaparelli was one of the most influential female designers in fashion history, but her business suffered during the second world war and closed in 1954. “We could do collections for 20 years just from the archives,” says Mr Della Valle. “There are a lot of rich people in the world who want something very special.”

Arnaud de Lummen, a French entrepreneur who specialises in identifying and relaunching old luxury trademarks, echoes this view. “There is a great magic and attraction to a ‘rediscovered’ gem, which gives a sense of pride and connoisseurship for those who have it,” he recently told Women’s Wear Daily, the fashion industry publication.

This new model is not without its critics, however. “I don’t think restricting distribution to this extent makes something desirable for the younger generation,” says one luxury observer. “It’s a mistake most of the luxury brand managers make: they don’t understand that the younger consumer who has grown up with Twitter and accessibility, defines exclusivity differently.”

Indeed, the Schiaparelli model described by Mr Della Valle is more reminiscent of the historic structure of a couture house, which demanded clients come to the designer, than the new way of thinking, which has brands such as Chanel taking its couture shows (complete with extravagant sets and famous models) to clients as far afield as Asia. “Discovery is not dependent on inaccessibility,” says the observer.

Mr Diella Valle says he was attracted to Schiaparelli both because of the values the brand represents – “modernity, style, independence” – and because of its success in the lucrative areas of perfume (the house’s fragrance “Shocking” was the main rival to Chanel No 5 when it was launched in 1937) and accessories (Schiaparelli was as famous for her “shoe hat” as her “lobster dress”), which he calls “the most important part of luxury today”.

The brand also fits in to what has become something of a personal crusade to preserve the cultural heritage of Italy, be it La Scala (Mr Della Valle has pledged €5.2m for its restoration), the Colosseum (a pledge of €25m) or one of its most famous fashion names.

Still, he has taken his time with the relaunch. One reason could be that it has become increasingly clear how difficult re-energising an old house can be. For every super successful Chanel or Burberry there is an equally high-profile failure.

Aquascutum, the storied British house founded in 1884 and owned since 2003 by fashion entrepreneur Harold Tillman, went into administration in April.

Meanwhile, despite its vaunted pedigree, Paris-based Vionnet, which was acquired by Matteo Marzotto former president of Valentino, in 2009, has not been able to find the alchemical combination of modern designer, heritage inspiration and corporate investment and governance that creates aesthetic and balance sheet gold.

“No one wants an Ungaro on their hands” says Mr Burke, referring to another once-storied French couture house that went through a revolving door of CEOs and designers after the founder retired, and this year dropped off the Paris fashion show schedule.

This is an especially acute challenge for a house such as Schiaparelli, whose fame can be both an advantage (its history creates a structure for a new designer) and a potential problem (it also creates expectations on the part of the buying public that a designer may, or may not, meet).

Indeed, Mr Della Valle says he has been called “every week at least” for the past few years about various rumours regarding his appointment of a new designer.

So far the names that have been mentioned are Brit Giles Deacon (who briefly designed a capsule collection for Fay and also worked at Ungaro), Frenchman Roland Mouret, Belgian Olivier Theyskens and, most recently, John Galliano, the British designer who had to leave Dior after making anti-Semitic remarks.

Anna Wintour, editor of US Vogue and one of the most influential voices in fashion, suggested in the New Yorker magazine that Kate and Laura Mulleavy, the American designers behind Rodarte, would be good candidates for the post.

Mr Della Valle has denied all such rumours, and will simply say that he does not consider “being a star designer” a pre-requisite for the appointment. He is currently deep in the hiring process and estimates that by next September, just after the Schiaparelli & Prada exhibit at the Metropolitan Museum closes, he will have 40 people in Place Vendôme, with a further 60 joining the atelier by February 2013.

“I think this will be a wait and see situation,” says Mr Burke. “But if it succeeds it has the potential to make people in the industry rethink the way they present and distribute product. Fashion will copy anything if it works.”

WWD: Fashion's Big Issue: Succession Planning

WWD | MILES SOCHA

PARIS — Crafting succession plans for its creative departments is no doubt a smart strategy for any large fashion firm.

But the scale of today’s most powerful brands is increasingly insulating them from turbulence when designers depart — whether from death, retirement, flameout, poaching or otherwise.

Christian Dior — one of the hottest topics of this European fashion season — is a case in point.

The search for a successor to disgraced designer John Galliano has now clicked into its second year — a delay which so far has not proven an impediment to the French firm’s business momentum. Operating profits more than doubled last year as sales in Dior’s own stores advanced 28 percent.

Dior has remained mum on its intentions, insisting it will take all the time it needs to find the right designer.

RELATED STORY: Christian Dior RTW Fall 2012 >>

The house is believed to be mulling continuing with a team approach, possibly adding some young, up-and-coming talents. The studio is currently headed by longtime Galliano collaborator Bill Gaytten, who has earned encouraging reviews — and traction at retail — for subdued collections faithful to Dior’s iconic, Fifties-flavored glamour.

As reported in these columns, Dior has also conducted talks with hot young Parisian design Maxime Simoens, who made his debut Monday as the creative director at Leonard. Sources indicated Leonard and Simoens are likely to reveal a separation by mutual agreement.

While far less known and accomplished than other contenders for the Dior job — who have ranged from Marc Jacobs to Alber Elbaz — Simoens’ story is a compelling one with echoes of Yves Saint Laurent, who famously succeeded Christian Dior following the founder’s death in 1957.

Aside from a physical resemblance — a reed-thin physique and prominent eyeglasses — Simoens, 27, is a French wunderkind. The bio on his Web site notes that he became the first designer ever to be accepted as a member of the French Fashion Federation before having shown any of his collections.

Simoens has repeatedly denied to WWD that he has had any contact with Dior. 

Dior officials had no comment on Monday.

Observers agreed that decisions today about creative leadership are tied to the brand-related considerations, rather than a designer’s vision or personality.

“The overused term of brand building has become paramount,” said Robert Burke, president and chief executive officer of the consultancy Robert Burke Associates in New York. “The brands today more than ever are attuned to how to run a business.…No longer is it a one-man show — not with so much business at stake.”

“When a designer has managed to turn his/her company into a brand — with product pillars, codes and strong identity, combined with very efficient management — then succession remains a big issue, but at least there is less pressure on timing,” agreed Floriane de Saint Pierre, who runs an executive search and consulting firm in Paris. Besides the Galliano drama, the industry has been shaken by other unexpected designer shifts.

In 2010, there was the suicide at age 40 of Lee Alexander McQueen, and the sudden exit of Christophe Decarnin from Balmain following stress-induced health issues. Designer underlings succeeded both men: Sarah Burton and Olivier Rousteing, respectively.

More recently, the Jil Sander company persuaded the house founder to return once again, dislodging Raf Simons as creative director, despite almost universal acclaim during his seven-year stint.

Also, amid robust growth in sales and profitability last year at Yves Saint Laurent, Hedi Slimane is expected to succeed Stefano Pilati, who staged his swan-song show on Monday.

Succession is also a timely and highly sensitive subject given that a good number of major designers — including Giorgio Armani, Oscar de la Renta, Karl Lagerfeld, Krizia’s Mariuccia Mandelli, Vivienne Westwood and Ralph Lauren — continue working into their 70s.

It’s widely known in the industry that the “S” word is verboten at companies including Armani and Chanel. “And look what happened to Alber Elbaz and Jean-Paul Knott when they dared enter the Krizia lair,” said one European source, referring to short-lived stints by the Israeli-born and French designer, respectively, at the Milan-based house.

Executive search and other experts agreed that a visionary creative leader adds vital verve to a fashion brand, making succession planning crucial, while cautioning that transitioning to new design talent is a murky enterprise fraught with complications.

“We’ve all seen what’s happened when it’s the wrong designer,” Burke pointed out. “But that tends to happen when there’s less clarity about the direction of the brand or the label.”

He cited Valentino as an example. The Rome-based house endured a few turbulent years following the retirement of its founder in 2008, and before the current designers, Maria Grazia Chiuri and Pierpaolo Piccoli, found their footing. The duo, who had been in charge of accessories under the house founder, have been faithful to the founder’s vision and the brand’s values, treated with a lighter, fresher hand.

“It took not just designers. It took the ceo and all the people in the organization to take it in the right direction,” Burke said.

“I think it’s terribly dangerous to not have a succession plan,” stressed Vanessa Denza, the founder and owner of Denza, a London-based fashion recruitment agency.

She lamented that few designers deliberately cultivate and retain their eventual successors. In her view, Graeme Black was a “natural” to eventually take over from Armani. However, the Scottish-born designer exited Armani in 2001 after seven years, and has since done stints at Ferragamo, his own brand, and Boss Black women’s.

Denza applauded Diane von Furstenberg for last year recruiting Yvan Mispelaere, a seasoned talent with experience at Prada, Gucci, Louis Féraud and Chloé, to be her creative director. “She’s the president of the CFDA. She is a pragmatic woman,” Denza commented.

Observers agreed that securing design talent today is increasingly challenging for a multitude of reasons, including such contractual obligations as non-compete clauses that limit mobility.

Concetta Lanciaux, who runs a luxury advisory company based in Switzerland, noted that finding successors is more difficult today because senior “high-talent” designers prefer to continue working with the brands they have relaunched. Examples of this profile would include Elbaz at Lanvin and Nicolas Ghesquière at Balenciaga.

What’s more, the promising “next-generation” talents — including Christopher Kane, Alexander Wang and Damir Doma — have succeeded in building successful, sizable companies, making moonlighting for another brand a less urgent priority, and a less sought-after career path, Lanciaux said.

A pioneer who introduced management succession planning as the longtime head of human resources and synergies at LVMH Moët Hennessy Louis Vuitton until 2007, Lanciaux noted that the vagaries of creativity make it more challenging to anticipate what to do when a brand requires new design leadership.

“Designers, you have to leave them free to develop their creativity,” Lanciaux explained. “There is this affinity to the brand — this is paramount in creative functions, while management is transversal.”

Design studios can yield high-talent successors.

“Nobody could anticipate that Tom Ford would emerge at Gucci, or that Sarah Burton would emerge to the extent she has today,” Lanciaux said.

Yet she cautioned that not all second-in-command designers can rise to the challenge. “Next to these successful examples there are many unsuccessful ones,” she said. “Being a No. 2 for too long may freeze a designer in that profile.”

De Saint Pierre noted that France is the first country with a strong fashion industry to have dealt with major successions: Dior in the late Fifties, Chanel back in the Seventies, in addition to Givenchy and Yves Saint Laurent more recently.

Multiple observers noted also that once-strong houses can recede from prominence, with Emanuel Ungaro and Claude Montana frequently cited as examples of ill-handled successions.

According to de Saint Pierre, there is no rule for finding a suitable successor. “It just depends on talent and personality. One needs to be creative, to deal with an extremely high level of work and pressure, to have a modern inclusive management style and to fit with the brand,” she said. “Creative directors with true creative vision and true capacity to understand the newness of the 21st century are key to driving luxury global brands. “

Echoing other observers, Mary Gallagher, Paris-based associate for New York search firm Martens & Heads, noted that Dior is still performing very well even without a star designer.

Still, “I do think a figurehead helps sell the dream, especially a rare talent like Galliano,” she said. “I think the customer, unless it’s a die-hard fashionista like Daphne Guinness, does not need to have Lee [Alexander McQueen] or John [Galliano] actually sketch and drape her dress. The customer buys into the quality, design, cachet and reflected glory of a fashion house. And in most cases, it’s the studio that is proposing to the creative director, who then approves the sketch or collection.”

Observers noted that brands also require an up-front designer because the press, especially, often demands a name — and in some cases, a hero — to engender their ongoing interest.

Joelle de Montgolfier, director of Bain’s luxury group for EMEA (Europe, the Middle East and Africa), noted that human resources departments are typically engulfed in the immediate needs of business, and “not systematically forward looking.” Where succession planning exists, it rarely goes beyond management and the ceo position.

“It’s the common bottleneck: People are absorbed in daily execution,” de Montgolfier said, noting that’s especially the case during times of economic downturn and at a time when the “speed of change” in business life is accelerating.

What’s driving growth in luxury goods is the expansion of directly operated store networks and emerging markets, and creative concerns are rarely top of mind, she said. Still, “we are absolutely advocates of advance planning for future growth, and talent would be part of that,” she added.

De Montgolfier noted that many luxury brands have been around for generations, meaning they have survived the passing of their founders.

“Look at Hermès. They don’t have that famous designer in place and no one’s worrying about how they’re faring,” de Montgolfier said. “The weight of power is a bit more balanced with the rest of the organization. People have come to realize that the thrust of the company and its ability to grow goes beyond the creative talent,” she continued, mentioning the example of Ford, whose 2003 exit as creative director at Gucci Group did not impede its global advance.

Brands can become so significant in the marketplace that they live a “life of their own,” de Montgolfier said.

“It’s become a global industry and a very professional one,” she said. “It’s not about a person making an impression. It’s about a brand meant to survive across decades.”

WWD: L Capital to Shop for Mid-Market European Brands

WWD | ALEX WYNNE

PARIS — L Capital Management is going shopping. The LVMH Moët Hennessy Louis Vuitton-backed investment vehicle said Friday it had closed its third round of funding, with commitments in excess of 400 million euros, or $533 million at current exchange.

The firm, whose previous investments include the contemporary brand stable of Sandro, Maje and Claudie Pierlot, plans to buy into between 10 and 15 European midmarket lifestyle and retail brands, it said.

“They are already looking at two or three companies in Europe,” a spokesman for L Capital said, without revealing details.

There is speculation that L Capital has kicked the tires of U.K.-based retail jeweler Aurum, owner of the Mappin & Webb, Watches of Switzerland and Goldsmiths chains. Aurum was put up for sale by Landsbanki Islands hf, an Icelandic bank, last year.

The economic climate in Europe is likely to see certain family or designer-owned brands thinking twice before rejecting financing, where in the past they may have held on tight to their independence.

“European brands are particularly interesting right now, because of the financial situation. It’s not as easy for them to get funding from banks as it has been in the past,” said John Mitchell, president of retail and luxury goods consultancy Robert Burke Associates.

There are several high-end European brands that may be in the market for investment. Market sources cited Charvet, Christian Louboutin and Kiton as potential targets for investors.

But L Capital has made a habit of investing in midrange firms that have a strong retail footprint already, including Gant, Pepe Jeans and Hackett Group.

“L Capital invests in brands that are too small or do not have enough of a luxury positioning for LVMH,” HSBC analyst Antoine Belge commented.

“They are the champions of retail, and there are not many specialist retail [investment firms] out there,” noted Karine Ohana, owner of boutique M&A firm Ohana & Co.

In the midmarket segment, companies that may be seeking investors include French dancewear and shoemaker Repetto, lingerie maker La Perla and high-end linen brand Frette, according to sources. The latter two are owned by San Francisco-based JH Partners, which may be looking to make an exit.

L Capital is also likely to target brands that have strong international expansion potential, especially in emerging markets.

“Changing demographics, consumer behavior and emerging new market segments in mature economies in Europe and the U.S., an increasing wealthy middle class and emergence of important, powerful economies in China, India, South East Asia and South America create significant demand for lifestyle brands,” L Capital Management chairman Daniel Piette stated.

The investment firm’s sister fund, L Capital Asia, made two acquisitions in February. The first was a minority stake in Chinese contemporary clothing firm Trendy International Group, which owns the Ochirly brand, one of China’s leading domestic labels in the fast-fashion segment, as reported. The second is an 8 percent stake in Indian ethnicwear retailer Fabindia, which has a total of 148 stores in five markets.

WSJ: Dreams and Dread: Countdown to a Designer's First Runway Show

WALL STREET JOURNAL | CHRISTINA BINKLEY

Theia designer Don O'Neill has been having night sweats since December. His first-ever runway show is Wednesday, and things keep going wrong.

A week before the show, an important gown arrived with its elaborate embroidery completed perfectly—all on the wrong fabric. An Italian wool-jersey fabric shrunk dramatically each time it was ironed. Models have been chosen—and dropped out. "There are so many variables that are out of your control," says Mr. O'Neill. "All of those jigsaw pieces have to come together."

More than 300 designers are showing their collections on the runways this week in New York before the shows move on to Europe. That's more than will show in London, Milan and Paris put together. Chalk it up to American entrepreneurial spirit and the lack of a controlling body overseeing the shows. In Europe, major fashion weeks are governed by national councils that control who can show and when.

Fashion consultant Robert Burke estimates that out of the 308 labels showing in New York, only 40 have annual revenue of more than $10 million. That means the other 85% of labels are effectively mom-and-pops with big dreams.

Among the handful of first-timers hitting the runway this week are Theia, Billy Reid, Suno and Levi's.

Last year, Billy Reid, Suno and Theia held informal presentations for fashion editors and buyers instead. Jenne Lombardo, fashion director at Milk Made, a production house that backs emerging designers each season, says editors and buyers prefer presentations for their ease and speed. It takes an hour to see a 15-minute runway show, allowing time for the mechanics of seating and other preparations. But a 15-minute presentation takes just about that.

Even so, the allure of the runway is hard for designers to resist. Len Peltier, Levi's creative director concedes that he worries about seeming "presumptuous." "We're excited to launch something on the world stage," he says, but "we know we're not a high-fashion brand."

Runway shows create more opportunities for video, and photographers can snap pictures from risers at the end of the runway—making it easier for labels to use the show later in marketing.

But for all their promise, runway shows are full of heartache and fear. Mr. O'Neill, the designer of three-year-old Theia, has seen his designs on celebrities such as Angela Bassett and Taylor Swift. For his own show, he dreamed of a Plexiglas runway glimmering beneath the evening gowns for which the label is known. Then he had to nix the Plexiglas when the cost estimate arrived: $7,000. His runway will be covered in white carpet.

The designer, whose label is privately held, says he doesn't have a firm budget for the show, but he knows he shouldn't spend too much. He tries to cut corners where he can. The show is set to take place Wednesday afternoon at a venue 40 blocks from the Lincoln Center tents.

One job of a runway-collection designer is to wow the jaded fashion magazine editors in the audience. This crowd is looking for signals that a designer has buzz and artistic talent—and for ideas for their own pages. Often, pleasing them requires designs that are very different from what a designer might present to shoppers.

Yet Mr. O'Neill worries that in his haste to create dramatic fashions in fine fabrics, he may have created several too-costly looks, including a lambskin poncho with a Mongolian lamb collar. "Either I get fired after the show because I spent too much," he says, "or it'll be a huge success and I can keep my job."

Another faction to please with his collection: his sales team. "Why is it so dark?" asked one saleswoman, referring to a number of looks in black. "Because that's what I'm feeling," he said.

A week before his show, Mr. O'Neill said he had completed about half of the 30 looks he was aiming for.

Getting models has been a particular problem. Mr. O'Neill settles on a model, and then her agent warns her to hold out for a bigger label. "If you aren't Marc Jacobs, it's hard to get models. And I'm not Marc Jacobs," Mr. O'Neill says.

Despite the stress, Mr. O'Neill says he is counting on results. "There are some publications that won't even come look [at his presentations]. So I'm hoping that this will get their attention."

Being the lead designer has helped him look back with sympathy at his previous bosses at other brands, such as Carmen Marc Valvo. "At Carmen, I'm now understanding why he was how he was before a show," says Mr. O'Neill. " Very, very stressed out."

WSJ: Fashion's Other Season Takes the Spotlight

WALL STREET JOURNAL | RAY A. SMITH

What comes between spring and fall? In the fashion world, it's not summer, it's "pre-fall." If all goes according to designers' and retailers' plans, it could be one of the most lucrative times of the year.

The term pre-fall refers to what used to be unglamorous, mostly commercial collections meant to tide shoppers over in between the big spring and fall seasons. They were typically filled with staples like sensible blazers, skirts and sweaters in unchallenging colors.

Pre-fall fashions were once low-key affairs, shown by private appointment—if the collections were shown at all.

But in the past few years, pre-fall has started stealing the spotlight with dramatic, red-carpet-ready looks and shows from high-profile designers including Oscar de la Renta and Karl Lagerfeld for Chanel that are on par with the designers' spring and fall collections.

For the past month, designer labels have been showing their new collections for pre-fall 2012. After a pause for the holidays, there will be more presentations from big names like Givenchy, including shows in which models just stand rather than walk a runway.

That's partly because despite its silly-seeming name, pre-fall is serious business. Pre-fall designs begin arriving in stores in May and June—two to three months before fall clothes start arriving—and generally stay on the floor until January.

This means the clothes are generally sold at full price for longer than those from the fall collections, before being marked down.

"Resort" collections, which come in between fall and spring and generally start entering stores in November, have also been rising in prominence and revenue, but pre-fall's timing has given it more celebrity buzz.

The pre-fall shows coincide with the early-year entertainment awards ceremonies including the Golden Globes and the Grammys.

"These shows have become the perfect marketing vehicle for pre-fall," says luxury goods consultant Robert Burke. "You show it in December and it's on the red carpet in January and February and in stores in May."

Pre-fall, in terms of a fashion season, is supposed to start being worn somewhere around mid- to late-August and early- to mid-September. The timing presents a weather-temperature challenge for shoppers and retailers.

"When these pieces hit the store in June or July, depending on the part of the country, it can be 80 or 90 degrees, so we're not only looking for really wow emotional pieces for the fall season with fur and leather, but also for lighter weights" and lighter colors, says Colleen Sherin, senior women's fashion director at Saks Fifth Avenue. It's something the retailer is especially concerned with as many of its stores are in the South, she says.

The in-between season also presents a challenge for designers. Michael Kors this month showed a coat worn with shorts, while Vera Wang showed dark-colored sleeveless fur coats and wool shrugs with light chiffon dresses in colorful spring-like prints. Mr. de la Renta showed short-sleeve outerwear and a silk merino "cardigan coat" with a mink collar.

The rise of mid-season collections began in earnest following the global recession of 2008, when even luxury shoppers stepped back from conspicuous spending. Retailers requested more deliveries from designer labels, hoping that rotating in more new merchandise would tempt shoppers to again open their pocketbooks.

Karl Lagerfeld's elaborate resort show in May 2010, held against the backdrop of Saint Tropez's harbor with models arriving by speedboat and celebrities like Diana Kruger flown in to sit front row, marked a watershed moment for these pre-season collections. Shortly after that, more designer labels put on shows or presentations and fashion magazines and websites eagerly covered them.

Since pre-fall has a longer selling season, those collections are "probably representing now almost 60% to 70%" of a designer's overall fall collection sales, says Mr. Burke. "So it's putting more pressure on designers to create bigger pre-fall collections."

A spokeswoman for Oscar de la Renta, who showed 58 looks in his pre-fall runway show, said pre-fall is, in general, a big collection for the house "and very important sales-wise."

For Jason Wu, "the spring and fall collections are the main image drivers of the company," he says. But in terms of business, the pre-seasons are doing the heavy lifting.

For fall and winter, about 60% of orders from a group of key retailers is from the pre-fall collection, the designer says, while 40% is from the fall runway collection. Mr. Wu even took the opportunity during pre-fall to launch another bag line rather than wait until his fall collection.

With increasing up-to-the-second coverage, a trend shown on the runways for spring gets exhaustive exposure—and is worn by celebrities and tastemakers soon after the show is over. By the time that look reaches stores six or seven months later, it already looks and feels dated, says Catherine Moellering, executive vice president of Tobe, a New York-based trend-forecasting firm.

By January, "spring runway looks would have been worn already" by celebrities and personalities, says Mr. Wu.

That, of course, is a no-no for celebrities on the red carpet. For her appearance at the People's Choice Awards last January,Natalie Portman wore a button-front silk chiffon pleated dress from Mr. Wu's 2011 pre-fall collection.

WSJ: Beyond Bridal: Vera Wang's New Look

WALL STREET JOURNAL | CHRISTINA BINKLEY

Quick: Who is Vera Wang?

Hoping to alter the obvious answer—"bridal gown designer"—Ms. Wang is about to rebrand herself, moving deeper into ready-to-wear clothing. In an effort to earn greater regard—and profits—from the mainstream fashion audience, she will place her famous name on her midpriced line of ready-to-wear, which is now called "Lavender" and will be called "Vera Wang."

She is also broadening her reach in mass fashion with new lines of teen clothing and menswear. The moves, announced today and Thursday, include a line of rental tuxedos for Men's Wearhouse and a clothing brand called Princess, which will be sold at Kohl's.

The initiatives, part of a strategy to unleash growth in new ventures, will move Ms. Wang further beyond wedding-related goods than ever before. They also will leave her with a tiered pyramid of brands—and, if all goes well, a much larger stream of revenue from ready-to-wear.

At the top will be her small but expensive luxury bridal and ready-to-wear lines. The fashion line she shows on New York Fashion Week's runways will now be called Vera Wang Collection—or just "Collection," as Ms. Wang's team is already referring to it. (The move evokes Calvin Klein, which shows the Calvin Klein "Collection" line on New York's runways, in addition to the company's underwear, fragrances and other products.)

The new Vera Wang line of ready-to-wear will fall in the middle, along with her long-established licensed products, from fragrance to eyewear. Plans for the ready-to-wear line include clothing, accessories, handbags and jewelry, says Mario Grauso, president of the closely held Vera Wang Group. At the bottom tier are lower-priced clothes and jewelry for Kohl's, David's Bridal and Zale Corp.

It's from the middle section that the company's growth is expected to come, with new Vera Wang dresses costing just a few hundred dollars. That will make them accessible to far more people than the current runway line, where dresses cost $1,300 and up. "In the years to come, that middle brand will be what we will develop," says Mr. Grauso. "The middle is huge."

The new emphasis on ready-to-wear also offers a peek into the mind of the woman who dressed both Chelsea Clinton and Kim Kardashian for their weddings. Despite the princessy gowns for which she is known, Ms. Wang's real passions in design are edgier—the urban daywear she wears herself.

"When I design ready-to-wear, that's about me. That's about how I live," she says. "I'm really a luxury T-shirt, sweater kind of girl," she says, but, she acknowledges, "People don't think of me that way."

But the strategy is rife with risks. Ms. Wang has worked for years to build a luxury brand and must avoid diluting it or confusing customers. And though Ms. Wang may be the world's best-known bridal designer, with successes in high-profile gowns (such as the strapless cobalt-blue confection Michelle Obama wore to the Kennedy Center last week), her track record with ready-to-wear is spottier. Her nonbridal clothes have often struggled to find mass appeal. Lavender was temporarily shuttered during the financial downturn, and has been producing only shoes for several seasons.

"She started with a bridal collection and then extended into other areas, but most of it relates back to bridal," says Robert Burke, a fashion-industry consultant who has in the past advised Ms. Wang. She has had a string of successes with ancillary bridal products—from a line of budget-priced bridal jewelry to mattresses—an endeavor that came out of research showing one thing many newlywed couples buy is a mattress.

"We don't do horribly," said Mr. Grauso, when asked about Lavender's performance—hardly the voice of confidence. But he and Ms. Wang think Vera Wang will do better than Lavender did with a stronger fashion market, now that the financial crash is over, and with a collection of products more clearly branded as Vera Wang.

Mr. Grauso is dispassionate about the small, luxury-priced "Collection" line, which appeals to an artistically minded clientele and has never made profits. "There's much less of a customer for Collection," concedes Ms. Wang. "The cost is enormous. I don't make money doing it. I lose a lot."

"How many women are really interested in clothes off the runway that are a little challenging and weird-looking?" posits Mr. Grauso, a longtime fashion executive who isn't fearful of challenging clothes himself. As he spoke, he was wearing a pair of Rick Owens blue jeans with a crotch at midthigh and a hem above his ankle.

Ms. Wang's bottom-tier efforts have had greater success. In August, when Kohl's Corp. reported its profits rose 17% in the quarter, the store chain attributed the rise in part to the success of Simply Vera, Ms. Wang's line of lower-priced fashions.

The new Princess line for Kohl's is set to capitalize on that, with girlish clothes designed to appeal to teens and young women in the twenties. A person familiar with the plans says the new line is expected to bring the Vera Wang Group revenue from the various Kohl's deals to $500 million annually within two to three years, with Vera Wang Group's total revenue expected to be more than $1 billion.

The new Kohl's line is expected to be on store floors in July 2012, initially with clothes, which will be followed quickly by handbags, and shoes. "This is going to be girly," says Mr. Grauso.

Men's Wearhouse will start taking reservations for the tuxedos in January, for weddings beginning in April, says spokesman Doug Ewert. A high-quality super 130s wool fabric and trendy trim fit—two button jackets, side vents and flat-front pants—give the black or gray tuxedoes a "Mad Men" look. They'll be among the retailer's most modern looks, Mr. Ewert says. The deal also allies the three biggest bridal fashion purveyors in North America: Vera Wang, Men's Wearhouse (which says it rents one out of every three tuxedoes in North America) and David's Bridal, which cross-markets with Men's Wearhouse and sells Vera Wang White brand gowns.

Ms. Wang says she doesn't feel any pangs of regret at putting her luxury name on a midpriced product. "I brought Mario on to do this," she says.

Before joining her, Mr. Grauso worked as president of Puig Fashion Group, where he had the unlovely job of firing designer Olivier Theyskens from Nina Ricci. That move was considered wise for the brand's financial success but was received with fury by fans of Mr. Theyskens' ethereal, haunting designs. Yet Mr. Theyskens has gone on to success designing the midpriced Theyskens Theory line, and Nina Ricci has found its footing under designer Peter Copping.

Ms. Wang's luxury-priced lines are like icing, says Mr. Grauso—in need of something to support them. "Icing," he says, "is only good if there's a cake."

WSJ: Seeking the Most Expensive Products

WALL STREET JOURNAL | CARL BAILIK

My print column examines the hundreds of products that claim to be the most expensive of their kind. Some achieve this by defining narrow categories, by piling on the gold and diamond embellishments, or by setting a high price that no one steps up to pay.

“I think it’s all about publicity,” said Martin K. Sneider, adjunct professor of marketing at Washington University’s Olin Business School in St. Louis, “either for the seller or the buyer or both.”

Much of the publicity seems to originate from the U.K., where many of these products are offered for sale, then covered in the newspapers. “There’s a lot of international money there,” Sneider said of London.

At Lindeth Howe Country House Hotel and Restaurant in Bowness-on-Windermere, U.K., which this week sold a chocolate dessert for $34,000 and is applying for Guinness World Records recognition, “The appeal to us was never making money as we are selling the dessert at a price that makes us very little profit,” Mark Abbott, business development executive for Lindeth Howe, wrote in an email. “We do however gain the publicity.”

As for the U.K.’s predilection for such superlatives, Abbott said, “I think with the situation in the economy and other things going on in the U.K., the U.K. public like ‘good news’ or ‘happy news’ and the media pick up on these stories, to counter-balance the negative stories. I also think that rich individuals in the U.K. like to show off their money and it is aimed at them. I think it can be an aspirational product.” And even in these tough economic times, there are enough buyers, especially for products with a very limited production run. “People will enough money to buy something like this, don’t get too affected by the recession as they have enough money,” Abbott said.

Other most-expensive candidates are no longer available. In 2007, the Westin New York offered a $1,000 bagel with white-truffle cream cheese, but it isn’t on the menu today. “The bagel was launched in a different economic climate, before the recession hit, and is no longer offered, so the hotel cannot speak to whether it’s a tougher sell in the current economy,” a spokeswoman for the Westin wrote in an email. “However, interest continues to be very strong from a media perspective, which suggests that consumers are still interested in hearing about exclusive, luxury-type products.”

“Even in these tough economic times, we have found that the people who had plenty of money still have plenty of money to spend,” Rob Bruce, spokesman for Whyte & Mackay, wrote in an email. Whyte & Mackay owns the Dalmore distillery, and a bottle of Dalmore 62 sold for a record price two months ago. “They are maybe being less ostentatious and less high profile with their buying behavior. For example, the buyer of the Dalmore 62 was adamant he wanted his identity protected which we duly did. But they are still enjoying the best luxury products money can buy.” Bruce added, “Buyers of these products have a raft of different reasons for purchasing them. To treat themselves. To invest and make money. To show off. To indulge in a passion or hobby. To taste history in a glass.”

The motivation isn’t always, or often, practical. A diamond-and-platinum bikini designed by New Hope, Pa. artist Susan Rosen for Sports Illustrated swimsuit model Molly Sims in 2006 was given a price tag of $30 million and has been labeled by many articles as the world’s most expensive bikini. Yet any wearer would find she hadn’t gotten much surface area per dollar. “I don’t think she expected it to be that small,” Rosen says of Sims, though Rosen added, “It’s racy but it’s not obscene.”

If she were brainstorming a special swimsuit this year, Ms. Rosen isn’t sure she’d go for something so opulent, but she noted that interest in the bikini, from the media and blogs, has remained high.

“Time doesn’t go any faster or slower because I spent $50,000 on a watch,” said Marshal Cohen, chief retail analyst at the NPD Group in Port Washington, N.Y. “But time can be more enjoyable to a person because they have a watch no one else has, or can eat a dessert no one else has, or can drive a car that you can feed a country with the value of.”

Cohen suggested one way to marry that phenomenon with today’s consumer’s hunger for deals: A Groupon or other social coupon offering, say, half price on menu items at the restaurant that offers the most-expensive version of a certain food item: “Experience a piece of luxury at a price anyone can afford” is the tagline he suggested.

Charles A. LaCalle, a retail analyst with Robert Burke Associates, agreed that the very expensive item could make less expensive wares alongside it seem downright reasonable. He mentioned a company that introduced an expensive backpack made of alligator. If it makes just a few and sells out, “the effect on consumers is significant,” LaCalle said. “Now, customers can buy a $1000 shirt from their line and feel like they are getting a bargain.”

Cohen added, “Luxury no matter what is something that in good times and bad still resonates with people. Even in our hungriest and darkest of days, we still want luxuries we can no longer get.”

WSJ: Ungaro Plots a Comeback Without a Design Chief

WALL STREET JOURNAL | CHRISTINA PASSARIELLO

Paris

Shoppers looking for clothing by Emanuel Ungaro in any major American department store are out of luck. Stores have stopped carrying the high-end French line. And here, at the sole Ungaro store, downstairs from the label's offices on Avenue Montaigne, several of the shelves are bare.

Now, Emanuel Ungaro is trying to climb back from one of fashion's biggest debacles in recent years. Two years ago, a collection remembered for its sequined, heart-shaped pasties made Ungaro the laughingstock of Paris Fashion Week. The juvenile designs were a far cry from the sultry gowns made by the founder in earlier decades. The collection had been designed in part by Hollywood wild child Lindsay Lohan.

Add to that the five other designers who have left since founder Emanuel Ungaro retired from ready-to-wear 10 years ago. Ungaro cut ties with the latest, Giles Deacon, earlier this month. The turmoil has muddied the brand's image.

Now, Ungaro (pronounced: OON-ga-ro) is starting over—and it's doing so deliberately without a head designer. When the house shows its spring 2012 collection Monday in Paris, it will be a team effort. Emanuel Ungaro SA's new chief executive hasn't figured out who will take the runway bow.

"I don't believe in overnight sensations," says Jeffry Aronsson, an American who took over in June after heading brands such as Oscar de la Renta, Marc Jacobs International and Donna Karan. "My goal is to revitalize the company in a sustainable way, not a flash in the pan."

Mr. Aronsson believes the brand should stand out in tops and loungewear such as caftans, capitalizing on roots in silks and prints. The upcoming collection has a geological inspiration. A board where designers pinned up images that inspire them showed pictures of eroded rocks. A print used in a sequined maxi-dress and other items was created from images of volcanoes, said Ms. Labib-Lamour. The shapes include peplum tops over long pleated skirts and draping on a red leather dress to form a cowl neck.

Plenty of brands seek new designers when they attempt a turnaround. Gianfranco Ferré has had a revolving door of designers since its founder died in 2007. The Italian label rushed to bring in two freelance talents for its Milan fashion show this week. American fashion house Halston has also had its share of creative chiefs, including Rochas's Marco Zanini and actress Sarah Jessica Parker.

But few designer brands flourish without a public mastermind. Christian Dior is biding its time with studio-designed collections while it searches for a designer to replace John Galliano. Its couture show in July—a mishmash of various decades, with some designs topped off with clown hats—showed what can go wrong without a driving vision.

Max Mara and Hugo Boss are two labels that thrive with no designer in the spotlight. Yet neither boast the high prices of designer ready-to-wear and the image that justifies them.

Ungaro's Mr. Aronsson thinks the in-house talent can mine Ungaro's heritage—bright colors, silk prints and sexy draped dresses—better than a high-profile designer from outside.

"At this point it would be worse for the brand to recruit a known designer because it would be one more direction and message," says fashion consultant Robert Burke.

Less than a week before the fashion show, in a cluttered room, seamstresses were hunched over a long table sewing sequins on lace and cutting red, blue and turquoise fabric for a pair of pants.

Jeanne Labib-Lamour, a designer who previously worked at Balenciaga and Giambattista Valli, called models in one by one to audition for the runway. Ana de Ribeiro, the director of product development, played with metallicized white lace on a mannequin, trying to figure out the right draping.

When it came to deciding what looks would go down the runway, three women—Ms. Labib-Lamour, Ms. de Ribeiro, and the head of marketing, Isabelle Konikoff—sat around a table to watch models try on the dresses. Mr. Aronsson also had his word to say, keeping the women focused on the brand's roots.

Mr. Aronsson says that when he arrived in June, he found a discouraged team of 35 employees. But he noticed young talents, as well as veterans who had worked under the founder. Seeing them and their knowledge of the archives convinced him to rely on them as designers. "I'm not looking for a big name from the outside because I don't want the development of the brand to be dependent on a big ego," he says.

The brand has been traumatized by more than a decade of upheaval. Mr. Ungaro, who is French with Italian roots, sold the house to Salvatore Ferragamo SFER.MI -0.18% in the 1990s. Ferragamo flipped it to Silicon Valley entrepreneur Asim Abdullah in 2005. Over that time, sales collapsed from a few hundred million dollars a year at its peak in the 1990s to $6 million last year, according to documents the company filed with France's commercial court. Ungaro lost $8.5 million last year, according to the documents. Ungaro has retail sales of several tens of millions of dollars, most of which is generated through licenses for products such as perfumes and home linens.

The design turmoil set in after Mr. Ungaro's retirement from his ready-to-wear line in 2001. (The company ended its couture line in 2004 when Mr. Ungaro fully retired.) Giambattista Valli, his deputy, took over the main clothing line. Three years later, Mr. Valli left to start his own line and was succeeded by a string of designers over the next several years.

When sales didn't spike, the company's then-CEO, Mounir Moufarrige, tried a bigger stunt: hiring Ms. Lohan. (He brought in professional designer Estrella Archs to help the actress.) Ms. Lohan's reign lasted one season.

"I'm still convinced it needs a similar sort of cocktail as what I concocted with Lindsay Lohan because it needs buzz," says Mr. Moufarrige, who left the company at the end of 2009, about the same time as Ms. Lohan. "Making beautiful clothes is not enough."

Mr. Deacon, a British designer, joined last year with a four-year contract. But his aggressive aesthetic was a mismatch for Ungaro. His last runway collection was in dominatrix black, far from Ungaro's iconic pinks. He left earlier this month.

Upon his arrival, Mr. Aronsson set out guidelines on what Ungaro stands for, using words such as seductive, sophisticated and intellectually attractive. "Emanuel Ungaro was inspired by the concept of the mistress, but for me it just means a woman who has it all," says Mr. Aronsson.

He says it could take a few seasons before retailers have confidence in Ungaro. The runway show is a step in that direction. "I want the retailers to see this, that it's a whole new page," he says.

WWD: Rebound for Glory

WWD | DAVID LIPKE

This year has been pivotal in the young life of the Michael Bastian business.

After ending his license relationship in November with the backer that first launched his line in 2006, Bastian took the fall 2011 season off to regroup and is now reintroducing the collection for spring. The aim of the transition is to lower prices in order to become more competitive at retail while growing the label into a bigger independent brand.

In an ironic—and well-timed—twist, Bastian took home the CFDA award for Menswear Designer of the Year in June, despite skipping the runway shows in February since he had no collection to show for fall. It had been the fifth consecutive CFDA nomination for the designer, who lost out the four previous times—once for the Swarovski Award for emerging men’s talent and three times for Menswear Designer of the Year.

“I had no expectations. I didn’t even get a new tuxedo for the night—I already had four summer tuxedos from before,” recalls Bastian, who edged out Simon Spurr and Patrik Ervell for the prize. “I didn’t write a speech. When I got up there, that was genuine shock.”

The win came at a fortuitous moment for Bastian, as the designer, by that time, was gearing up to begin selling his spring line to retailers, the first collection produced entirely by his newly independent company. Previously, the collection was manufactured and distributed under license by Solomeo, Italy-based Brunello Cucinelli, known for its luxurious cashmere knits and tailored clothing.

“We got the award and immediately flew to Milan to open up the new collection,” says Bastian. “I think it really helped put us on people’s radars again. We had appointments with accounts that hadn’t seen us before.”

For spring, Bastian has almost doubled sales from a year ago, with all of his old retail partners like Bergdorf Goodman, Barneys New York and Saks Fifth Avenue restocking the label and a number of new accounts picking up the line for the first time. “We’ve gotten a bunch of new stores from Europe and particularly Korea,” says Bastian. “Korea has really come to life—it feels like the new Japan.” Among those new accounts are Tomorrowland in Tokyo, Boon in Seoul, Beyman in Istanbul, Matches in London and Duchatel in Biarritz, France.

Bastian’s main goal in taking his business in-house was to reduce prices by 10 to 20 percent, to get them more in line with other brands in the designer space at retail. For the new spring ’12 season, the average retail price for a blazer is $1,769, shirts are $405, jeans are $413, shorts are $388 and outerwear is $1,534. By comparison, last spring blazers averaged $2,039, shirts were $475, jeans were $465, shorts were $438 and outerwear was $1,756.

However, not all prices came down this first season. For example, last spring dress pants averaged $461 and for this spring they are up to $545. Bastian will continue to work on finding ways to bring those prices down. His high prices previously kept distribution limited to just 20 high-end doors in the U.S. and 15 overseas.

“We’ve worked our way backwards on pricing and figured out where we need to be in each classification, even if we aren’t getting the margin you’d expect,” Bastian says.

The separation from Cucinelli was amicable—Bastian bought back the license for a fee and took back his patterns and sample archive—with the Italian company intent on concentrating on growth of its own signature brand. “In order for Michael to grow, he needs a partner that can invest all their time and energy into helping his brand really get to the next level,” said Brunello Cucinelli at the time. “Due to the increasing growth of Brunello Cucinelli in the past couple of years, I felt it was important for us to focus all our efforts nurturing our brand. I think Michael has a lot of potential going forward.”

While Bastian was growing up, that potential in the fashion industry was not immediately apparent. He was born in Lyons, N.Y., in 1965, to a homemaker mother and a father who was a high school history teacher. The first time he lived away from home was when he entered Babson College, where he majored in business with the goal of working on Wall Street. But as fate would have it, the first job offered to him was as an assistant buyer at the now-defunct Abraham & Strauss department store in Brooklyn. “I wasn’t very good at it, and was probably going to get fired. I started in junior knits and ended up in rugs and carpets, which was like God’s waiting room there. It was their way of telling me I needed to find a new job,” remembers Bastian, who scored a gig as an assistant at Avenue magazine in the nick of time.

After a short time in publishing, Bastian moved on to the marketing and public relations department of Sotheby’s for nine years. Later, he transitioned to Tiffany & Co., where he worked with celebrities like Susan Lucci and Phylicia Rashad to create tabletop installations for the flagship store.

Bastian went on to work in creative services at Polo Ralph Lauren before being recruited by a former colleague, Robert Burke, who had gone to Bergdorf Goodman as fashion director. Burke tapped Bastian as men’s fashion director at Bergdorf’s, even though Bastian had no previous direct experience in men’s. “Robert told me it was more about my eye, so I decided to give it a shot,” says Bastian.

At Bergdorf’s, Bastian helped remake the men’s store from a stuffy emporium for older shoppers to one with a hipper, more eclectic vision, while staying true to the store’s reputation for luxury and exclusivity. Among the brands he worked closely with was Cucinelli. When Bastian began conceiving the idea of starting his own line after five years at Bergdorf’s, Burke—a close mentor to Bastian who now runs his own consulting firm—suggested Cucinelli as an ideal partner.

Bastian, Burke and Cucinelli met in a hotel room in Florence to discuss the idea and sealed the deal with a handshake. “When I told my mom I was leaving Bergdorf Goodman, there was a long silence. Then she said, ‘Well, you can always move home if it doesn’t work out,’ ” says Bastian, with a laugh. “I was like, ‘Thank you, but that’s not going to happen.’ ”

When Bastian and Cucinelli launched the Michael Bastian collection for fall 2006, it was immediately picked up by Bergdorf’s, Saks Fifth Avenue, Neiman Marcus and Holt Renfrew. Bastian’s design sensibility hews to casual, preppy basics—with some tailored clothing thrown in—but with carefully wrought details and high-end fabrics, trimming and construction. “There was this big void in between Gap and the suits you wore to work. I wanted to put as much care into your shorts and shirts as others put into your suits,” Bastian explains. “Really what I do is elevated sportswear.”

For his return this spring, Bastian created a collection inspired by James Dean and the blue jeans, oversize sweaters, chinos and glasses that are part of the screen star’s iconography. “I’ve been keeping this inspiration in my back pocket for when I really needed a good collection,” says the designer, who made sure to not take the theme too literally but instead modernized the fits and reinterpreted the looks to fit into his own aesthetic. “James Dean represented such a big chunk of classic American style. We have some Western stuff from Giant, and the cool jeans and T-shirts and knits from Rebel Without a Cause. We re-created his horn-rim glasses—he had really bad eyesight.”

One pair of chinos was inspired by a look from East of Eden, with a double set of belt loops. The collection also includes a singlet, in a nod to Dean’s high school days as a wrestler.

Producing the new collection was no small feat. Leaving the Cucinelli fold has meant Bastian and his employees—you can count them on one hand—have had to develop their own infrastructure for design, production, sales and deliveries. “It’s been a steep learning curve,” Bastian admits. “I had it very easy before, in a way. I would go to one factory with Brunello Cucinelli, and everything was very centralized and they made a very beautiful product. But the downside was that I had no control over pricing or distribution. We’re taking the necessary steps to turn this into a real business and not just make beautiful clothes nobody can afford.”

Instead of relying on that single factory in the Umbria region of Italy, Bastian now produces in 12 different plants throughout Italy and Portugal, which he had to seek out and visit. The designer opened a showroom in Milan to sell to European and Asian retailers and set up warehouse distribution in both Milan and Brewster, N.Y.

In Milan, Bastian works with Christine Ellis Associates to handle sales, while in New York he has set up his first office and showroom at 210 Eleventh Avenue, the same building in which Thom Browne, Simon Spurr and Adam Kimmel are located. Prior to opening his new headquarters in December—encompassing a cozy, inviting atelier and showroom—Bastian worked out of his West Village apartment. Samples were kept in the Union Square apartment of Eugenia Gonzalez Ruiz-Olloqui, who heads up Bastian’s public relations and serves as his constant sounding board and adviser in the business. “I don’t think people realized how bare-bones we were,” says Bastian.

Key to Bastian’s newfound independence and the establishment of his own company is the co-branded collection he designs for Gant, the Sweden-based sportswear brand that was originally founded in New Haven, Conn., in 1949. Launched in fall 2010, the Gant by Michael Bastian line brings in the lion’s share of company revenues for Bastian. The company expects to post total revenue this year of about $4 million, including sales of the Michael Bastian collection and fees from the Gant by Michael Bastian collaboration. “I put very little pressure on the designer line in terms of profitability and sales. Gant really takes a lot of financial pressure off,” Bastian explains. “The runway collection really drives the desire and communicates the point of view of the Michael Bastian brand—and I don’t want to crush that butterfly by strapping a financial weight to it.”

The Gant by Michael Bastian range is younger and markedly less expensive than the Michael Bastian collection, which uses more luxurious fabrics, is more minimal and involves fewer embellishments. A Michael Bastian shirt is highly engineered, for example, with vents in the back, darts to shape the silhouette and Neapolitan shoulders. A Gant by Michael Bastian shirt is a bit looser, shorter in length, with a classic pleat in the back.

The line is priced about 25 percent higher than regular Gant merchandise. It is sold in 30 countries, including more than 100 stores in the U.S. and 150 stores internationally. Retailers include Barneys New York, Bloomingdale’s, Saks Fifth Avenue, Neiman Marcus, Nordstrom, Ron Herman and Scoop, in addition to Gant’s own stores.

“We are growing the line at 20 to 30 percent per season,” says Ari Hoffman, chief executive officer of Gant USA, who was the architect of the deal in 2009. “We originally launched it as sort of a branding exercise, but it’s grown into a really nice business for us.”

Last year, Gant launched a women’s collection with Michael Bastian, which is sold in Gant stores only, and this year it introduced sunglasses and watches under the partnership.

Under his own flagship brand, Bastian launched an eyewear range earlier this year with his first licensee, Randolph Engineering, under the Michael Bastian x Randolph Engineering moniker. In February, Bastian became a finalist in the GQ Best New Designers in America competition and designed a khaki look for Dockers as part of the program. The designs are on sale at Bloomingdale’s in September and on Dockers.com as of October. Bastian has also designed flip-flops for Havaianas and, going forward, is seeking license partners for underwear, fragrance and perhaps even a diffusion label that would sit in between the designer collection and the Gant range.

Not bad for a former rug salesman in Brooklyn.

BLOOMBERG: Vuitton’s $1,560 ‘Bebe’ Puts Brakes on Big Bags

BLOOMBERG | COTTEN TIMBERLAKE

After several years of hauling around back-achingly large bags, women are getting some relief. Small bags are back in style.

“The fashion consumer doesn’t want to look like she’s lugging around her entire office anymore,” said Robert Burke, who runs an eponymous New York luxury consulting firm. “There is a desire to look more carefree.”

The trend parallels a general shift toward more ladylike fashion, and may help generate additional sales in the U.S. handbag market, which grew 10 percent to about $10.3 billion in the year ending in June, according to Coach Inc. (COH) Luxury sales will rise 7.5 percent this holiday season, faster than the 6.7 percent increase a year earlier, according to the International Council of Shopping Centers.

Saks Inc. (SKS) Chief Executive Officer Steve Sadove is sufficiently bullish on bags to put more on shelves this fall, and is sticking to his forecast of a same-store sales increase of as much as 9 percent in the second half of 2011. Coach sees small and crossbody bags as a “significant opportunity.”

Fashion houses including Prada, Dior and Gucci ran ads touting smaller bags in Vogue’s September issue. Louis Vuitton’s Fifth Avenue flagship this month displayed a top-handled $1,560 “Lockit BB” -- for “Bebe” -- which at 9.4 inches (24 centimeters) is more than a third smaller than the iconic Lockit.

At New York Fashion Week this month, Ken Downing, fashion director of Dallas-based luxury retailer Neiman Marcus Group Inc., spotted plenty of medium-sized, rectangular, hand-held purses, many accented with the neon colors that dominated the spring 2012 collections.

‘Polished Looks’

That shape goes well with the current “polished looks” that are a nod to the “Mad Men” TV series and the 1950s and 1960s, he said.

Lisa Pak, who co-owns a Tribeca boutique, carried a boxy, 8-inch, yellow patent leather Louis Vuitton shoulder bag to the Vera Wang show -- leaving her oversized bags at home.

“I wanted to wear something special,” said Pak, 45. “This is all I need.”

The return of smaller bags may put limits on an oversize trend that began about 10 years ago and by the mid-aughts had “hit the major leagues,” says Roseanne Morrison, fashion director of Doneger Group, a New York fashion trend forecaster. Women liked big bags in part because they could stuff in everything from their laptops to extra shoes.

They also found pleasing the contrast of a big bag with skinny jeans, Morrison says. “It” bags included the 15-inch “Giant” Balenciaga City, priced at $1,945, and the Fendi Spy, a $2,250 17-inch bag.

Like a Boulder

Over time, however, the bags began to, ahem, weigh on their owners. On fashion blogs women complained that the bags had become so large and heavy that it was like carrying around a boulder. The gripes have prompted handbag wholesaler Rioni to defend big bags; a post this month was illustrated with a perspiring, quivering cartoon figure trying to lift a barbell.

Designer Rebecca Minkoff, who once sold a leather tote that weighed 2 pounds (0.9 kilograms) empty, says just half of her bags are large, compared with about two-thirds before. She defines a large bag as one whose width or height is 2 feet (0.6 meters) or more.

Smaller bags are easier to carry and look better with “statement” high heels than do oversized bags, which make wearers lean over and “waddle,” she says. Minkoff’s bags are also more affordable -- $195 to $295 compared with $495 -- and are selling briskly, she says.

Good for Business

Small doesn’t always equal cheap. Louis Vuitton’s 13.8-inch “petit modele” version of the Lockit, in anthracite crocodile with a chained handcuff, sells for $14,760.

The advent of smaller bags “will be good for business because it shows a new handbag shape and proportion that the consumer doesn’t have in her closet today,” said consultant Burke. “It gives the consumer something new to buy.”

Big bags won’t disappear, of course. Women still need totes to haul around their iPads and other gear, which means retailers will gain two sales instead of one, Burke says.

Nordstrom Inc. (JWN), the Seattle-based retailer, has a solution: a matching envelope clutch and a tote in red and black leather with leopard-print calf hair, at $128 and $248, respectively.

FINANCIAL TIMES: Milan floats a big idea

FINANCIAL TIMES | LUCIE GREENE

Recently a new fashion store opened in Milan. This would not in itself be a notable occurrence, especially during fashion week, but this is a vast, 43,000 sq ft “directional emporium” with internal floors, walls and stairwells that float in space.

Sited in a former cinema on the edge of the shopping district and designed by Parisian architect Jean Nouvel, this is Excelsior, Italy’s first upscale concept department store in the Selfridge’s/ Barney’s mode.

The store is the first venture in the luxury end of the market for Gruppo Coin, which owns lower- and mid-market chains OVS Industry, Coin and Upim.

“It’s totally new for Milan,” says Stefano Beraldo, the group’s chief executive. “Here, if you are a luxury brand you set up your own store or you sell a very limited selection to boutiques. There are no luxury department stores.”

That begs the question: if there are no luxury department stores in Milan, could there be a reason?

“The charm of shopping in Milan is the street of shops,” says Ed Burstell, managing director of Liberty of London. “It’s elegant and timeless, but perhaps a bit quaint. Yes, Excelsior addresses a more modern approach to shopping: people are seeking an edited version. But it will have to convince Milan.”

Maurizio Borletti, former chairman of La Rinascente, one of Milan’s oldest department stores, points out other challenges: “location, size, price points, and the economy in Italy”.

Mr Borletti, who is also chief executive of Borletti and chairman of Printemps, the Paris department store, adds: “While there is a lot of travel from wealthy Chinese in particular, Milan is not as desirable as London and Paris. Excelsior’s pricing and size may also prove a challenge to getting the high volume of sales, as it is quite narrowly focused on luxury and fashion. It is also very close to a high traffic area in Milan, but is not in it.”

Coin devoted €30m ($26.3m) to the project, which Mr Beraldo characterises as having “the services of a small boutique but all the international brands of a major store”.

The fashion content is overseen by Antonia Giacinti, founder of Italian multi-brand boutique collective Antonia, and includes Balmain, Haider Ackermann, Levi’s Limited Edition, Valentino and Vanessa Bruno – many of which are either new to Italy or little distributed. Manolo Blahnik will open his first shop in Italy in the store.

Film-maker and art director Marco Braga has curated its art selection. There are videos by digital artist Matt Pyke, and it boasts its own “sound identity” courtesy of Italian DJ Stefano Fontana. There’s a ground-floor cocktail bar with regular shifts in music and scents, a Ladurée confectionery stand, a gourmet food emporium and three restaurants.

An industry figure estimated that for Excelsior to make a healthy profit it would need to bring in €60m-€80m a year, and €40m to break even.

“My first impression is that it seems quite museum-like, with high design concept, product behind glass and sparse merchandising, which can be a barrier to getting the kind of high volume sales necessary,” says retail consultant Robert Burke.

Yet, design and fashion blogs have been won over and, as Mr Borletti points out: “In the Milan shopping landscape, there is little competition in this format.”

WSJ: With Leap To Vuitton, A Change In Culture

WALL STREET JOURNAL | MAX COLCHESTER & CHRISTINA PASSARIELLO

PARIS—Louis Vuitton's CEO-in-waiting, Jordi Constans, won't be the first consumer-goods brand manager who jumps over to the luxury-goods business. But when he arrives at the French luxury fashion giant, Mr. Constans is likely to face a culture shock.

Known for yogurt and bottled water, his former employer, Groupe Danone SA, has a dressed-down style, where executives rarely wear ties, in contrast to the sleekness found at Louis Vuitton, an empire built on status-symbol handbags. At Danone, the informal "tu" form of addressing people—rather than the more formal French "vous"—permeates even the chief executive suite.

LVMH employees are decorous, and it is considered a plus for job candidates to be well-versed in classical music. As for Mr. Constans, he's a keen electric-guitar player.

On Wednesday parent company LVMH Moët Hennessy Louis Vuitton said Mr. Constans, a relatively unknown Spanish executive, will work with current Louis Vuitton chief executive Yves Carcelle for a year before taking the reins of the fashion brand.

The 47-year-old Mr. Constans declined to be interviewed for this article. LVMH declined to make Mr. Carcelle available to comment.

The business-school educated Mr. Constans is likely to bring a more modern touch to proceedings at Louis Vuitton. Mr. Constans replies to email promptly and personally. Mr. Carcelle's secretary prints out his emails for him.

In an interview on Danone's website from January 2010, Mr. Constans describes the food maker's culture as "humble" and "constantly questioning ourselves." Speaking in French with a slight Spanish accent, he says the qualities he encourages in his employees are "openness, rapidity and agility."

At Danone, Mr. Constans piloted the dairy division through the financial crisis by slashing prices on its best-selling products to boost volumes. He also polled consumers about how they liked his yogurts and worked with bloggers.

During an April speech to students at the IESE business school in Spain, his alma mater, Mr. Constans laid out his philosophy on innovation. He highlighted "avoiding the production of useless items" and said economic crises are an "optimal time to innovate," according to the IESE. "Innovation comes from a good conversation," the IESE quoted him saying on its Web site. "You never forget a good conversation."

Investors will be anxious to see how that philosophy meshes with selling $1,000 handbags in China. Indeed, many experts are fretting that Mr. Constans doesn't have an extended track record in emerging markets.

"Louis Vuitton has done an excellent job in boosting distribution and the brand's image in Asia," said Robert Burke, president of Robert Burke Associates, a New York-based luxury-goods consulting firm. For Mr. Constans, "it will be a steep learning curve."

Louis Vuitton, which is the flagship brand of the LVMH luxury goods empire, generated around €6 billion ($8.21 billion) in sales in 2010. Around 60% of Louis Vuitton's revenue came from Asia, according to research by HSBC. The entire company had 2010 revenue totaling €20.3 billion.

Filling Mr. Carcelle's shoes will be a challenge, analysts say. The 63-year-old spent the last 21 years transforming Louis Vuitton from a French trunk maker into a global handbag brand with operations stretching from Shanghai to Rio de Janeiro. Mr. Carcelle fine-tuned Louis Vuitton's image to keep it up-market yet affordable for aspirational shoppers, while ensuring an efficient distribution and production network.

The amiable Frenchman is also famed within the company for his ability to combine work and play. Mr. Carcelle has been seen partying late at night with designer Karl Lagerfeld and quaffing champagne early in the morning after news conferences about yachting races. But Mr. Carcelle is known for working long hours, starting at the crack of dawn to catch his colleagues in Japan; his three assistants work in shifts to keep up. During the weekends, he often zips down to the south of France where he owns a vineyard and a country house he has decorated with contemporary art.

Despite the cultural differences between Danone and LVMH, it was widely expected that Louis Vuitton would look outside the company when its current chief executive Mr. Carcelle retired, analysts say.

"The choice of a replacement outside the world of luxury is not such a big surprise," says HSBC analyst Antoine Belge. When talking about which brand he wanted Louis Vuitton to be compared to, Mr. Carcelle "never gave the name of another luxury brand and instead cited brands like Apple," Mr. Belge adds.

The conversion from consumer to luxury goods can come with a stigma. After French retail group PPR SA hired the unknown director of Unilever's frozen foods division to run its high-profile Gucci Group luxury division in 2004, Robert Polet's moniker as the ice cream man haunted him. Mr. Polet left Gucci earlier this year.

That said, LVMH has heavily recruited outside of the luxury business, hiring experts from the automotive industry to help fine tune their production line and luring Procter & Gamble Co. PG -0.62% veteran, Antonio Belloni, to become their managing director.

Mr. Constans zipped up the ranks at French food company Group Danone SA during a 21-year stint that saw him move from marketing the dairy brand in his native country of Spain to become the head of the dairy products division world-wide this past January. Until then, he split the role with another executive and focused on mature markets, such as France and Spain.

Mr. Constans helped market a number of Danone's marquee brands, which include Activia yogurt.

For Danone's yogurts that purport to have health benefits, such as Actimel and Activia, marketing those brands has required tip-toeing around regulations. Health authorities have shot down Danone's health claims—that Actimel boosts the immune system and Activia aids digestion—and Danone has challenged those rulings. But in the meantime, Mr. Constans has steered Activia and Actimel's advertising to campaigns that avoid specifically making health claims.

Not all of his product launches were successes. He tested a yogurt that purported to boost bone density, Densia, in France before pulling it from shelves when consumers didn't bite.

WWD: Can Small Men's Brands Build Big Businesses?

WWD | JOCELYN ANDERSON

When Rupert Sanderson decided to step outside his comfort zone of evening heels and make saddle shoes for women, he had no idea that would become his first men's style.

The British footwear designer viewed the 2009 debut of his Saddled O's as a sociological experiment: Give a free pair to 50 of the most influential women in the U.K. art world and monitor the result. He hoped to create a trend among a stylish group, but he got a lot more than that.

"Suddenly, all these women were wearing them at once," said Sanderson. "But one of the effects it had was that men wanted a pair as well. So we started making them in men's sizes."

While Sanderson turned to the men's market as more of a novelty, other high-end designers are following suit by offering small footwear collections for guys. United Nude, Yigal Azrouël, Shipley & Halmos and Bespoken have all launched men's shoes this year. Gianvito Rossi will debut two sneakers and a loafer for spring '12.

Renewed life in the men's footwear market provides fertile ground for such introductions. But what's the point of launching a new category in such small numbers? The reasons, Footwear News discovered, are as varied as the collections. But in all cases it's about more than money.

Sanderson said he is meeting a demand. Others said they are expressing themselves artistically, realizing a dream and carefully laying the groundwork for a larger offering.

"[We don't have] too many pieces since we're just testing the men's market," said Rem D. Koolhaas, creative director and co-founder of United Nude, which launched three men's styles for spring '11 but has increased each season, with six available for spring '12. "We make shoes that we would like to wear."

The category addition, however small, is also a way to expand a brand's identity, to be not just a men's apparel label or just a women's shoe company.

Shipley & Halmos, for example, primarily a men's clothing line that started in 2008, launched three men's shoe styles for fall '11 to complete its customers' wardrobes. A fuller accessories line is planned for spring '12.

"We wanted to keep [the shoes] focused so the production numbers were not 20 [styles] right off the bat," said Jeff Halmos, co-owner of the label. "I don't think we could have supported something like that from a production standpoint."

Similarly, men's apparel label Bespoken has expanded steadily since its founding in 2008. The owners had worked with Grenson for runway shows, but they felt a fall '11 line of three shoe styles would complement the brand's menswear, said co-owner Paul Goncalves. Bespoken turned to U.K.-based firm Kurt Geiger to develop the shoes and then landed footwear accounts with Harrods, Selfridges and Liberty. The brand is now seeking U.S. retailers.

But Goncalves recognizes such a small launch comes with a few issues.

"The challenge in footwear is that in a department store, it's going to sit separately from the [apparel]," said Goncalves. "And we're still in the midst of establishing ourselves and generating awareness for the brand."

Such trials are the same for any brand that chooses to start small, and indeed, experts said mini collections can be both helpful and harmful to building a brand's footwear profile. If designers have the "it" shoe of the season, ample choice won't matter. And when high-profile retailers pick up even just one style, there is a prestige factor that can be very beneficial. But if buyers want more options, that's a different story.

"If retailers want to edit at all, it can be challenging," said Robert Burke, president and CEO of luxury consulting firm Robert Burke Associates. "It becomes more difficult than if they have four or five styles and you can make an assortment with multiple colors. You can actually sink your teeth into it and start to have a business."

And, in general, persuading retailers to buy something new can be tough, especially with a small, expensive line in this economic climate. "At the end of the day, it's all about margin: high sell-throughs and low markdowns," said Monique Umeh from trend forecasting firm Stylesight. "A lot of retailers are afraid of the liability. That's really going to be the challenge with smaller groupings."

Celebrity stylist Maryam Malakpour, who makes Newbark shoes with her sister, Marjan, has learned a lot about placement in the two years since the line debuted. While a men's offering has always been part of the brand, the duo felt they could only successfully market and sell women's product from the outset.

"We had to really concentrate on one [category] first to get ourselves launched and understood," said Maryam Malakpour.

The brand's slipper-like line started with one slip-on style on Net-a-porter.com and is also sold at boutiques such as Blue & Cream. The designers have added a split-sole style for men and women, and a loafer and boot are now available for women. Malakpour said she would like to make those two styles for men next.

"Being a small company that is very artisan and handmade, we are taking the growth and movements very slowly so we can make sure we aren't overdoing it," she said. "The way we've been moving with [men's shoes] has been successful, but in a small way."

To be sure, measured success is often good enough as these brands get started with footwear. Credibility in the market and celebrity fans may be just as valuable as wide profit margins.

"We always take great pride in working with great mills — we don't go outside Europe for manufacturing — so it's not like we are dealing with significantly high profit margins," said Bespoken's Goncalves. "It's more about maintaining the integrity of the brand and building on the foundation we've created so far."

And experts said designers shouldn't expect that launching men's shoes in such small numbers will be very lucrative at first anyway. In fact, with many of the lines made in Italy, production costs are high, and sell-throughs aren't guaranteed.

"In the beginning, they know they are going to take a loss until they can start establishing the brand and eventually grow the brand," said Stylesight's Umeh. "But it is the right thing to start small."

That's especially true for men, said designers. Knowing that male and female customers shop differently, most designers said they don't believe men even need the level of choice offered in the women's category.

Gianvito Rossi took that into account when planning his men's launch for spring '12. Rossi, son of Sergio Rossi, bowed his namesake women's label for spring '07, but when it came to his men's collection, he decided less is more.

"It's only three styles because it's intended as a [classic selection]. And in men's, in the end, the styles are not so many," said Rossi. "We are much more restricted in our minds than women are with shoes."

Shipley & Halmos also focused on basics for its shoe line, which will grow to four styles for spring '12.

"We've got a few staples in our apparel collection that we've been running for several seasons in a row, and we want to try to build a couple of [staples] into the shoe category as well," said Halmos. "The oxford, [for instance], will carry over for spring."

Such a selling strategy takes some of the risk out of a tough retail environment. Burke said this is a model that could become more popular going forward — and that's a positive thing.

"It's good because it's allowing brands to experiment in new product categories, and it gives retailers something to buy. It diversifies the offering and gets the name out in a new and creative way," said Burke. "And it's good to see the men's shoe assortment not being dominated by the established designers and companies."

WWD: Robert Burke Associates Expands to London, L.A.

WWD | MARC KARIMZADEH

NEW YORK — Robert Burke Associates, founded in New York in 2006, is expanding.

In May, Robert Burke, president and chief executive officer of the consultancy, opened in London and Los Angeles to better serve emerging markets and the growing interest of entertainment personalities in fashion.

The London office will serve designers, brands, retailers, retail development groups and investment bankers in Europe and the Middle East. “We are seeing a lot of activity from private equity groups looking to invest in fashion brands there,” Burke said. “In London, a fair amount of brands also want to enter the U.S. market and we can help them with it.”

Florence Hampson Bellon, whom Burke worked with when she was in the London buying office for Neiman Marcus and Bergdorf Goodman and he was Bergdorf’s senior vice president of fashion and public relations, is running the London office.

The Los Angeles branch, led by Tracy Chow, who previously worked for Burke in New York, primarily focuses on celebrities and other personalities looking to translate their profile into brands. The office will help them develop brand concepts, product lines and brand extensions with collaborations and licensing agreements. Clients in that arena so far include Daphne Guinness, Andre 3000 and Carmindy.

“We are seeing so many personalities and celebrities who want to be a brand, and while that has been somewhat haphazard for many in the past, we are now available to put together a brand strategy for individuals,” Burke said.

He said international markets continue to gain in importance for luxury firms, citing countries from the former Soviet Union, including Kazakhstan, where the company is working with Saks Fifth Avenue on its first location in the region; Azerbaijan, and Poland as newer opportunities. The BRIC countries, he added, continued to represent many opportunities for fashion houses, but each comes with its own set of nuances that needs to be addressed.

“The business has changed over the past five-and-a-half years with the growth of emerging markets,” Burke said. “Some people think that with the BRIC countries, you enter and make $100 million instantly, but each one is different. In China, the luxury consumer is still being educated, and the importance of marketing and a brand presence is critical there. What works in the U.S. does not mean it automatically works in China. Brazil has its own specific challenges because of taxes and duties, but that consumer is becoming much more global. Brazil has an emerging middle class that didn’t exist as such before.”

WSJ: A Designer Changes His Stripes

WALL STREET JOURNAL | RAY A. SMITH

On a recent weekday afternoon, Tommy Hilfiger was in his office clad in his signature warm-weather uniform: navy blazer, white shirt, crisp chinos and penny loafers, no socks. Only now, there was a crucial difference. Gone was the big, yacht-captain style, double-breasted blazer with brass buttons and baggy pleated khakis.

The change mirrors a shift at his company. His recent runway collections are sleeker and more urbane than in the past. He credits the "specialists" he has tapped to rejuvenate his women's and men's runway collections.

In one of the more unusual relationships in the fashion industry, Mr. Hilfiger has hired two critically acclaimed younger designers, Peter Som in 2009, and last year Simon Spurr, as creative consultants.

"It's my formula. It's my vision," Mr. Hilfiger says. "But I wanted someone to come in who respects the vision but would want to maybe modernize it a bit."

The hires are part of Mr. Hilfiger's broader effort to refresh his 26-year-old label's image in the U.S., particularly among luxury consumers.

High-end shoppers are taking notice. Over-the-knee, high-heeled lace-up women's duck boots Mr. Som dreamed up in collaboration with Mr. Hilfiger last year turned out to be one of the label's most buzzed-about and sought-after items in years. The label's retail prices have increased approximately 15% over the past two years. Net sales for the company's products rose 14.5% in 2010.

Critics are noticing, too. Tommy Hilfiger witnessed some of its most enthusiastic runway-show reviews in years since the two young designers came on board. Reviews noted the women's clothes "felt luxurious and sophisticated in a new way" and the men's line may have marked its best interpretation of preppy to date. Mr. Spurr, 36 years old, is one of three nominees for menswear designer of the year from the Council of Fashion Designers of America, whose awards ceremony takes place June 6.

With its popular colorful, preppy aesthetic, Tommy Hilfiger was one of the hottest American brands in the 1990s. At its peak, the company, acquired last year by apparel giant Phillips-Van Heusen Corp.,PVH -1.32% generated nearly $2 billion in annual sales in the U.S. But overexposure and changing tastes caused its popularity to wane considerably in the U.S. Its red, white and blue, logo-heavy look was seen as outdated. The label took a two-year hiatus from the New York fashion week runways in 2005 as it repositioned itself in the U.S. Meanwhile, the brand thrived in Europe, where it had a more upscale reputation and look.

Mr. Hilfiger says he is encouraging the designers to come up with modern interpretations of his signature staples. "I had an in-depth conversation with Peter on what New England preppy was all about," Mr. Hilfiger says.

The two men took a field trip in late 2009 to Mr. Hilfiger's home in Greenwich, Conn. They looked through Mr. Hilfiger's closet and that of his wife, Dee. "We were talking about how when Dee went to college she wore duck boots all the time," Mr. Som, 40, says. "I have my own duck boots, so I thought it would be fun to take iconic items and spin them, so I came up with making the boots sexier."

The result: High-heeled duck boots. "It was one of the most successful items we've had," Mr. Hilfiger says.

Mr. Hilfiger hired Mr. Som after he sought the advice of Vogue editor Anna Wintour a few years ago on how to spruce up his women's runway collection. Ms. Wintour recommended he take a look at Mr. Som. When he was looking to do similar updating with the men's runway collection in 2010, Mr. Hilfiger again went to Ms. Wintour, who suggested Mr. Spurr as one possibility. Ms. Wintour, through a spokeswoman, confirmed Mr. Hilfiger's account.

While several designers work for themselves as well as with other labels, Messrs. Som and Spurr's role with Tommy Hilfiger is uncommon. Typically, when a designer with his or her own line moonlights with a big label, the label's founder is deceased or is no longer involved. Mr. Hilfiger, 60, is very much alive and still holds the titles of visionary and principal designer.

And Mr. Hilfiger hasn't kept his business relationship with the designers under wraps in the way that bigger fashion houses usually do when they bring in smaller designers. Messrs. Som and Spurr were backstage—and were thanked in the program notes—for the women's and men's shows held during New York fashion week in February.

Robert Burke, who runs luxury-goods consultancy Robert Burke Associates, says crediting Messrs. Som and Spurr "is a smart move. It elevates [Mr. Hilfiger's] visibility and credibility in the high-end designer world."

Mr. Hilfiger says he sees hiring the men as a way to help two talented and hard-working designers. Mr. Hilfiger pays each designer a salary, which all three declined to disclose. They also get business experience working for a big fashion brand with $4.6 billion in global retail sales last year.

Mr. Hilfiger says he sees his arrangement with Messrs. Spurr and Som as an extension of his track record of breeding talent. Reed Krakoff worked at Tommy Hilfiger before being tapped by Coach, where he is executive creative director.

Many designers who are at the helm of mega-brands don't do much actual sketching and sewing, especially if their labels span a wide range of products like Mr. Hilfiger's. But even from when he started his label in 1985, Mr. Hilfiger hasn't generally been thought of as a designer who wields a sketch pad and pin cushion. Mr. Hilfiger notes he had numerous hands-on design stints early in his career.

Messrs. Som and Spurr sketch, select fabrics, make prototypes and conduct fittings for Tommy Hilfiger's runway collections. (The designers don't work on the sportswear collection that is sold exclusively at Macy's.) Last week both designers were in a factory in Italy working on prototypes for the Spring 2012 Tommy Hilfiger collection to be shown at New York fashion week in September.

The two work on their own lines at the same time. They said, in separate interviews, that they never have moments where they are conflicted about whether to save an idea for their own lines instead of using it for Hilfiger.

The process usually starts when Mr. Hilfiger conducts meetings with each designer to lay out the next collection's concept. They brainstorm, reviewing previous collections and inspirational imagery.

"They will give the initial sketch" and then work with the company's in-house design team on the details, says Mr. Hilfiger. The sketches are presented to sample makers.

"Once I sketch enough, I'll go back and get Tommy's thoughts and then he has an angle I never thought of, he adds that twist that he's known for," Mr. Spurr said by telephone from Italy. "It's a collaborative process."

"I'm there but I give them space," Mr. Hilfiger says. "If they want to try something different, I'm all for it because I like innovation and I want to see what they'll do without Big Daddy." After completing fittings of samples in Italy, Messrs. Som and Spurr present them to Mr. Hilfiger in New York to review. They coordinate with the label's stylist, Karl Templer. Mr. Hilfiger alone makes the call on what will go down the runway.

WWD: String of European Firms See Designer Changes

WWD | MILES SOCHA

PARIS — The furious game of musical chairs currently under way in the design studios of Europe shows no signs of slowing down.

According to market sources, Chloé is to expected to reveal as early as today that Clare Waight Keller, most recently creative director at Pringle of Scotland, will succeed Hannah MacGibbon at the helm of the French firm.

Chloé would simply be the latest of a host of European brands expected to name new designers in the coming weeks and months, headlined by Christian Dior, which ousted its star couturier John Galliano last March amidst widening allegations of racial and anti-Semitic outbursts.

The High Court here is expected to announce Thursday a date when the designer is to stand trial on a charge of public insult.

Alexander McQueen’s Sarah Burton — thrust to international stardom for dressing England’s royal bride, Catherine Middleton — is said to be at the top of the list of potential candidates that luxury titan Bernard Arnault is coveting as Galliano’s eventual successor.

Meanwhile, the industry can anticipate new faces at a host of august names in the coming weeks and months.

Balmain has already said that Christophe Decarnin will be replaced by his number two, Olivier Rousteing, while Gianfranco Ferré, Cacharel, Azzaro, Kenzo and Trussardi are among brands said to be recruiting new creative leadership.

Even men’s wear, traditionally a less volatile industry sector, is suddenly teeming with upheaval, with Z Zegna’s star Alessandro Sartori said to be headed to Berluti; Jil Sander designer Paul Surridge tapped to succeed Sartori, and former Dunhill designer Kim Jones making his debut here next month at Louis Vuitton.

Meanwhile, Waight Keller’s successor at Pringle, former Balenciaga alum Alistair Carr, is already at work on the resort collection and will show his first men’s wear collection in Milan next month.

The flurry of change comes at a buoyant time for high-end fashion businesses, and after a long period of stability in design studios.

“The entire world is changing so deeply and so quickly in this moment. Perhaps some brands are feeling the absolute need to change their designer if he or she is no longer able to make consumers push the door of their boutiques,” mused Jean-Jacques Picart, an industry consultant here.

Tancrède de Lalun, merchandise manager for men’s and women’s wear at Printemps, said the revolving door scenario was a cyclical one and was amplified by the domino effect that every departure has on other houses.

“During the crisis, for two or three years, nobody moved,” he said. “Everyone was just ducking and waiting for the crisis to blow over by making as little noise as possible and hunkering down with their teams.”

The return of double-digit growth among many leading luxury brands has emboldened managers to give their labels a makeover, both in terms of strategy and creative talent, de Lalun said.

Lucian James, creative director and founder of Paris-based strategic consultancy Agenda Inc., agreed creative and business imperatives are in flux.

“The reason is that new sets of skills are being prioritized in an accelerated, fragmented fashion culture,” he explained. “In a social media-fueled landscape, a new breed of designer needs to operate more like commissioning editors, treating their brands as media channels that edit cultural themes, and manifest them as clothes. And while it seems new, interestingly it’s the same approach that drove Coco Chanel to success — an understanding that fashion wasn’t just clothes, it was about ideas and the culture that could be expressed as clothes.

“Designers are changing because consumers are changing; consumers want brands to inspire them with ideas, not just with advertising, and to tell them about the future, not just the past,” James added.

According to Robert Burke, president and chief executive officer of Robert Burke Associates in New York, the current game of musical chairs is likely to end with brands eclipsing the designers that eventually fill the empty seats.

“The last thing the brand wants is instability,” he said. “I wouldn’t be surprised to see lower-profile [hires] as opposed to major star designers.” Naming Christophe Lemaire to succeed Jean Paul Gaultier at Hermès and designer-creative director tandems like Sébastien Peigné and Nicola Formichetti at Mugler are other examples of the antifame trend, concurred Printemps’ de Lalun.

“The market is recovering; it’s bringing back the energy and people think business could be even better,” de Lalun said. “It’s positive in the sense that it injects energy and a fresh vision. Having said that, hopefully things will not change every couple of years, because when a house changes its designer every two years, it’s very destabilizing.”

Liberty’s managing director Ed Burstell agreed. “Generally speaking, the overall merry-go-round of designers is not great for the industry. For a retailer, it’s really difficult to stand behind a brand that has a potentially changing designer,” he said. “A retailer wins by building a loyal rapport with its clientele, and you do that with consistency. It’s really difficult to establish that rapport when the consistency is not there. Look at the best brands. Take Burberry, for example. It has a consistent vision over time. Or Chanel. A consistent vision over time.”

Chloé has certainly weathered turbulence in its design studio since the 2006 exit of Phoebe Philo.

Before installing MacGibbon, one of Philo’s deputies, Chloé experimented with a team approach and three unfruitful seasons under Swedish designer Paulo Melim Andersson.

Seen as a knitwear expert, Waight Keller claimed to have helped transform Pringle over her six-year tenure “from a Scottish knitwear company to an international luxury brand.”

Before Pringle, Waight Keller was a senior women’s designer at Gucci during the Tom Ford era. Before that, she was design director for Ralph Lauren’s Purple Label men’s line. Her first job was as a women’s wear designer for Calvin Klein.

Chloé officials could not be reached for comment at press time.

Floriane de Saint Pierre, who runs an eponymous executive search and consulting firm in Paris, said fashion firms must now face a “new world” of digital media and fast-growing emerging markets.

“Pure creativity is becoming equally important as the ability to manage creative talents at a global level,” she said. “In the past decade, we’ve seen designers become ‘creative directors.’ Now we are probably facing the need to have chief creative officers as creative partners of chief executive officers. This requires redesigning organizations.”