APPAREL

Orange County Business Journal, May 2-May 8, 2005 by Bellantonio, Jennifer

RICHARD SAMUEL COHEN

CEO, St. John Knits International Inc.

Born in London, Aug. 27, 1954

Lives in Coto de Caza

Putting his mark on upscale women's clothier whose name is synonymous with founding Gray family. Already brought big fashion feel by hiring execs from Calvin Klein, Hermes. of Paris, U.S. arm of Italy's Gruppo Ermengeildo Zegna, from where Cohen himself was recruited.

The Grays-retired patriarch Robert, wife and chief designer Marie, daughter Kelly, who serves as creative director-found Cohen through headhunter. Has backing of 80% owner New York-based Vestar Capital Partners.

Came on in August, replacing co-chief executives Bruce Fetter, Kelly Gray. Fetter left earlier this year after running operations before Cohen came on.

Native of Britain. Says he came to company because of its "huge upside." Plans include opening more St. John stores abroad, targeting younger women, transforming stores from ladies-who-lunch look to glamorous California.

Signed up a New York advertising firm to help revamp company's image.

Looking to gain more sales-and profits-from handbags, wallets, other accessories.

Out to model company after world's great fashion houses.

"Everything is evolving," he says.

Closing window on company's finances. Because of publicly held debt, St. John has reported sales, profits. Cohen refinancing debt, plans to quit reporting numbers.

Privacy may be welcomed as company wrestles with lower sales, higher costs with store openings, remodelings. Sales for first three months of year down 4% from a year earlier to $103 million. Net income off 18% to $5 million.

Hallmark knit suits are a staple of celebrities, socialites. Company employs 4,900 people, including 2,700 in OC. Largest apparel maker here by workers, one of few still to make clothes in OC.

Started his career in 1976 as a designer for Seattle-based London Fog. Learned ropes, from designer Bill Blass, supervised distribution for London's Burberry. Spent 16 years as chief executive of Gruppo Ermenegildo's U.S. unit.

Calls himself a "brand builder." Kelly Gray calls him "accessible," easy to talk to.

Changes have caused some anxiety among workers, but blending well so far. Only has worked for family-owned businesses-Ermengildo Zegna is fourth-generation family business. Says he has no plans to take family out of St. John. Instead, wants to make family business more professional.

Only second executive from outside family. Hubert Mullions, who took over as chief executive in 2001, left after few months.

St. John, founded in 1962, no stranger to change. In 1989, Grays sold majority stake to Germany's Escada, which took company public in 1993. Six years later, Grays took company private in $520 million deal financed by Vestar.

Married, four children ages 5 to 13. Enjoys golf, fine wine, dining.

-Jennifer Bellantonio

JAMES HENRY JANNARD

Founder, Chairman, CEO

Oakley Inc.

Bom in Los Angeles, June 8, 1949

Lives on Spieden Island, Wash.

COLIN BADEN

President, Oakley Inc.

Born in Concord, Mass., March 27, 1962

Lives in Irvine

Company is old dog of OC's action sports industry, working on new tricks.

The latest: Thump sunglasses with builtin digital music player. Jannard, company's cigar-puffing visionary, calls it Oakley's "most important" product yet.

Baden is tell-it-like-it-is design guy.

Both pushing apparel maker to go wider. In February, Oakley presented at New York's Fashion Week for first time. Showed women's line, marking subtle shift in recent years for decidedly macho company. Baden calls women's wear "natural progression in the story of Oakley."

Opened New York showroom in SoHo last year.

Sunglasses still king. Duo continues to push newer products (shoes, clothes, prescription glasses, watches). Some hits. Some misses, like casual shoes.

2004 sales of $586 million, up 12%. Net income of $42 million, up 9%. Newer products made up 56% of fourth-quarter sales.

Both urge workers to push design envelope at "mad scientist" product lab, led by Baden. Sales of combat goggles, glasses to the Army among company's big sellers. Military sales grew by 60% last year to $27 million, with a big chunk coming from glasses, goggles. Expecting more growth this year.

Company looking to Thump to enter electronics with what it calls "wearable technology." Recently teamed with Motorola to make RAZRWire sunglasses, which links to a wearer's mobile phone.

'Technology is defining fashion," Baden says.

Had share of ups, downs with stores. Continuing to build retail empire. Owns, operates 83 Iacon stores, 37 O Stores in U.S. Expects to add 20 more stores this year.

Shoes need some help. Sales declined 12% in 2004 to $32 million. Company says golf shoes, sandals, military boots are hits. Lifestyle shoes flopped.

seeing struggles in Mexico, South Pacific, where sales declined 20% in 2004.

Overall 2005 sales projected to grow by 10% to 15%, driven by newer products. Last year struck pact to make glasses for Fox Racing.

Jannard, reclusive to extreme, rarely grants interviews. Camera phobic, though a photography buff himself. Raises "Oakley English Setter" show dogs. Company name taken from favorite dog breed. Splits time between OC, Spieden Island, Wash., a getaway he bought in 1997 for around $20 million.