Aerin Lauder will receive an annual fee of $700,000 to serve as a spokeswoman for and consultant to the Estée Lauder Cos. Inc., and her new upscale design and brand management firm, Aerin LLC, will net royalties of up to 5 percent for sales of products bearing the Aerin trademark and A logo.
Financial details of the agreement came to light in a Securities and Exchange Commission filing by Estée Lauder. The former creative director of the Estée Lauder brand, and granddaughter of the firm’s founder, has granted the company the exclusive right to use her name and image to market beauty products and related services for the brand, serve as a spokeswoman for it and work as its “style and image director” in tandem with its creative director.
The agreement calls for the $700,000 annual retainer to increase 4 percent at the end of each fiscal year until its expiration in June 2016 and requires Lauder to provide at least 35 days of personal appearances worldwide for the Estée Lauder brand, the company or its subsidiaries. She’ll be paid $20,000 a day for days beyond the 35, with the daily stipend increasing $1,000 in each contract year. She has agreed to make an additional 10 personal appearances at no cost to her new licensee other than “reasonable travel expenses.”
The company has the exclusive rights as licensee to “core beauty products” — defined as cosmetics, fragrances, toiletries, skin care, hair care, value sets and beauty accessories — bearing the Aerin brand and nonexclusive rights to “noncore” products such as cosmetics bags. The agreement, as outlined in the Form 8-K filed with the SEC, stipulates that Aerin LLC cannot use the name “Lauder” without the prior consent of Estée Lauder’s chief executive officer, Fabrizio Freda, and executive chairman, William Lauder.
Aerin LLC will receive royalties of 5 percent of net sales for fragrance products. Nonfragrance products will earn royalties of 4 percent of sales up to $40 million and 5 percent for sales above that mark. The license runs through June 2017, with extensions through 2032.
The licensee said it will use “reasonable efforts” to launch a limited capsule collection of “some Aerin-branded products” within a year, although it has no obligation to do so prior to the launch of other products under the Aerin “lifestyle brand.” Among the products contemplated by Lauder’s new firm are sunglasses that would fall into what she described to WWD as the “easy” luxury price range.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast