St. John Knits International Inc. seems to have found a happy medium after three rocky years.
The women’s clothing designer, famous for its elegant suits worn by politicians, celebrities and socialites, stumbled in an ambitious 2004 bid to appeal to younger women.
The move backfired, putting off the St. John faithful,affluent women in their 40s, 50s and 60s.
Now, after a chief executive change and help from the founding Gray family, St. John has mended fences with longtime wearers. The effort to appeal to younger women continues at a more measured pace.
“The brand wants to appeal to every woman regardless of her age,” said Chief Executive Glenn McMahon, who joined in September from the U.S. arm of Italy’s Dolce & Gabbana SRL.
St. John’s new balance came through at the company’s fall collection fashion show last week at the Orange County Performing Artscenter.
The show drew about 300 people, mostly St. John devotees but also a notable contingent of women in their 20s and 30s.
The company, which is targeting $400 million in sales in 2009, is looking to its fall collection of knit suits, dresses and skirts to bridge the gap between its longtime wearers and the younger ones it hopes to win over.
The crowd of mostly women sipped champagne and nibbled on truffle macaroni before fawning over a runway show of knit suits, ruffled blouses, slinky dresses, wide-leg trousers, cropped jackets and trench coats in shades of gray, blue, purple, pink, green, red and yellow.
Backstage were cofounder Marie Gray and daughter Kelly Gray, who left the company a few years ago and now are back as creative consultants trying to restore St. John’s luster.
The clothes showcased animal prints, light metal detailing, fur, geometric shapes, flowers and sparkles that made their way into St. John’s signature Santana fabric,a tightly knit rayon material that Marie Gray created when she and husband Robert started the company in 1962.
The show was a delicate balancing act for St. John. There were plenty of conservative knit suits. Drawing the most applause were a gray leopard print trench coat and a sexy shimmering gold dress.
The clothes are designed to evoke a fresh spin on St. John’s image, said Kelly Gray, who started the company’s initial push for younger wearers earlier this decade.
“The line is all about glamour,” she said.
The collection reflects the brand’s comeback and evolution, according to Bruce Fetter, president and chief operating officer.
“Last year was all about reconnecting with our loyal customers,” he said. “We’ve successfully done that. This year, we’re going to move forward with them.”
Cohen Era
St. John has spent the past two years rebuilding after a headlong push to appeal to younger women.
Richard Cohen, the former head of the U.S. arm of Italy’s Gruppo Ermenegildo Zegna who came to St. John in 2004, led a dizzying push for younger wearers by making clothes tighter and tapping Angelina Jolie as its model.
Cohen abruptly left a year later after longtime wearers balked and 2005 sales fell 4% to $379 million.
“The clothes didn’t have the elegance or the quality that we were used to,” said Renee Cisneros, a longtime St. John customer.
Since then, the Grays have returned as consultants. Fetter, who oversaw daily operations under the Grays and parted ways with Cohen, returned in November 2006.
For much of the past two years, director Phillip Miller and Fetter served as interim chief executives before McMahon’s arrival.
McMahon said he came to St. John at a critical point as the company tried to rebuild.
Fetter and Miller “played a huge role in restructuring the business before I came into the picture,” he said. “They got it up and running again. I credit the company’s comeback to them.”
McMahon has had the challenge of keeping St. John’s older customers happy while attracting younger shoppers. He said his strategy has been to revive St. John’s roots in classic knitwear with a modern touch.
“I wanted to go back to what made St. John so special. I wanted to celebrate its knit,” McMahon said.
The company plans to continue working closely with the Grays, McMahon said.
“Marie has always pushed the envelope for innovation and ingenuity,” he said.
The new line is “about celebrating smart, sophisticated and elegant women,” Marie Gray said. “These women want to look good but they also want to be comfortable. There are so many of them in the public eye and I want to dress them.”
Buyer’s Take
Customers like St. John’s new tack, said Ann Stordahl, executive vice president for women’s apparel at Dallas-based Neiman Marcus.
“Our customer is welcoming back their familiar fit and quality and is appreciating the design that has been invigorated by the return of Marie Gray and Kelly Gray,” Stordahl said. “We are anticipating that they will not only regain loyal customers who may have left the brand but also attract new customers.”
St. John wants to grow its own stores here and abroad, McMahon said. It now has 28 stores, including one at South Coast Plaza.
The company also plans to add more handbags and sunglasses, he said. A line of shoes is also in the works.
Another change: model Jolie, who came to represent the Cohen era, is out.
Her contract is set to expire in May without renewal, closing a chapter for St. John.
