The deal is comprised of $225 million in cash and 150,000 shares of Fossil Inc. common stock. Skagen may receive up to 100,000 additional shares of Fossil common stock if Fossil’s net sales of Skagen products exceed certain thresholds. The deal is expected to be finalized next month.

Skagen Designs, based in Reno, was founded by the husband-and-wife team of Charlotte and Henrik Jorst in 1989. Concentrating on modern Danish design, Skagen’s products run the gamut from watches and jewelry to sunglasses and clocks. The company, which has kept a low profile, generates about $130 million in sales.

“It’s a really big day today. There’s so much opportunity for us. We’re so excited and it will supercharge our growth,” Charlotte Jorst told WWD. “They’ll expand the company on all cylinders. We’ll open more retail stores, add handbags and clothing, work on the jewelry, and make the Skagen brand even larger. We can also double our markets. It’s just a phenomenal fit for everybody.

“We have long admired Fossil and believe they will bring great passion and vision to our brand,” she added.

“The opportunities for Skagen under the Fossil umbrella are endless and we look forward to building this wonderful brand,” said Henrik Jorst.

Kosta Kartsotis, chief executive officer of Fossil, said, “It is a great privilege to join together with our Skagen colleagues to share their Danish design story with the world. Skagen is unique and has enormous potential as a lifestyle brand. We see many similarities in the history and values of our two companies and look forward to creating something greater together.”

Fossil officials could not be reached Tuesday for further comment.

Skagen sells its merchandise in 75 global markets, including company-owned stores in Germany, Denmark, the U.K., Hong Kong and the U.S. In fact, the company opened its first U.S. concept store in New Jersey’s Westfield Garden State Plaza mall in November. Among its customers in the U.S. are Nordstrom, Macy’s, Bloomingdale’s, Lord & Taylor, Carson Pirie Scott and Bon-Ton, as well as independent jewelry and specialty stores. It also does e-commerce on its Web site, skagen.com.

Skagen has been capitalizing on its reasonable price structure during the economic downturn, as consumers sought to update their wardrobes with fashionable accessories. Watches retail from $89 to $325, jewelry retails from $15 to $125 and sunglasses are $75 to $135. Skagen, which refers to a Danish resort town, is also rolling out a line of interchangeable, stackable rings to complement the watch purchases.

“Women in particular are going back to basics, to less glitzy, basic designs,” said Henrik Jorst in a WWD interview last fall. “Our stuff is superclean,” added Charlotte Jorst in the same interview. “The design looks like a million bucks, but it hardly costs anything, and our customers get a little piece of Denmark.”

The company has said that its plan is to become more aggressive in opening more stores, and was seeking a location in Manhattan.

Fossil, which has a wide distribution network throughout 120 countries, produces watches under such labels as Fossil, Relic, MW, MW Michelle, Mobilewear and Zodiac, and has licensing agreements for such brands as Michael Michael Kors, Marc by Marc Jacobs, Adidas, Burberry, Diesel, Emporio Armani and DKNY. The company, based in Richardson, Tex., distributes its products in more than 360 company-owned and operated retail stores.

For the third quarter ended Oct. 1, Fossil’s net income rose 2.1 percent to $69.6 million, while sales increased 212.7 percent to $642.9 million. On a conference call with analysts at the time, Kartsotis said the brand is “getting more aspirational.” He also said Fossil is in the process of clarifying its “unique positioning” and point of view. Kartsotis, who recently signed a licensing deal with Karl Lagerfeld to develop watches, said he was seeing a “fundamental shift” in Fossil’s watch business.

“It’s not really the fashion watch business anymore, it’s not novelty…it’s more lifestyle branded watches,” he said, explaining that consumers are responding to the storytelling aspect of the brand, as well as a higher-priced, more detailed product.

On Nov. 8, Fossil said it was cutting its fourth-quarter guidance due to the stronger U.S. dollar, but raised its full-year forecast.

Howard Feller, a partner in Marketing Management Group, noted that Fossil started moving in an upscale direction when it purchased Michele Watches in 2004 for $50 million, a deal MMG orchestrated. He said Michele Watches put them in the luxury sphere, and Fossil has been able to leverage that brand domestically and internationally. He said the Skagen acquisition, with its more reasonable price points, “fits in with the brands they already license.”

He believes Fossil’s acquisition of Skagen was inevitable since Fossil’s business is very strong and it has a lot of capital to deploy. “They’re always looking for growth opportunities,” said Feller. He added that if one looks around the landscape of U.S.-based fashion watch companies with brand equity, there aren’t very many. “Skagen was always an obvious target brand for Fossil. The company is strong, and Fossil was the logical acquirer.”

Andrew Jassin, managing partner at Jassin O’Rourke Group, a consulting firm, said, “Skagen is an interesting company. They’ve done a good job in distribution to the middle tier. They’ve got good styling and some pieces at museum shops. They’re not efficient alone and need to be rolled up and purchased, and I think we’ll be seeing a lot more deals.” He noted that the marketing costs and product placement costs in the stores are high, and he expects to see a lot more designer watch brands being absorbed over the next couple of years.

The scent, created by the Italian design duo and their fragrance licensee, Procter & Gamble, is due out starting in early February.

“Sports have always been an inspiration for our men’s wear,” explained Gabbana. “We’ve even shown it on the runway, as part of the Gym collection, and have a dedicated section to Gym in our store in Milan, for example. It’s not technically sportswear, but inspired by it.”

Dolce & Gabbana has also sponsored numerous sports teams, including AC Milan and Chelsea FC, Italy’s national rugby and swimming teams and the Milano Thunder boxing team. The designers have their own gym, as well.

“We’ve had swimmers, soccer and rugby players model in our campaigns,” continued Gabbana. “We dress [Lionel] Messi, [David] Beckham. We are friends with soccer players.

“This fragrance project goes back three years,” he continued. “It’s in our nature. We are fashion people — not technical — but we love doing sports. We don’t live for sports, but they are part of our lives. We enjoy them.”

Gabbana himself has been personally involved in high jump, swimming, boxing and military circuits. “Domenico enjoys running, cycling, aerobics and cross-training,” said Gabbana. “He loves to watch sports events, races. He knows all about sports and the champs.”

Gabbana said The One Sport is inspired by daily life. “We have friends that go to the gym. They are each very different from one another, but they all enjoy going to the gym for themselves, to feel good about themselves,” he said. “As the Latins said, ‘Mens sana in corpore sano [or a sound mind in a healthy body, in English].’ ”

In that vein, The One Sport’s video advertising features model Adam Senn entering an ancient stadium, where he begins to train. As filmed by Mariano Vivanco, Senn’s like “a warrior in the modern-day arena,” said Luigi Feola, general manager for global luxury brands at Procter & Gamble. The 30- and 45-second spots are destined for TV, cinema and online. There are also single- and double-page print ads.

“We didn’t want to focus on one specific sport,” noted Gabbana. “It’s a boy preparing for the Olympic games, in Greece or Rome. And we wanted a model that would represent a sportsman, with a fit and athletic body, but not too muscular, and remote from a bodybuilder-in-the-1980s style.”

“It will be the strongest [campaign] ever in terms of any launch we have done [for Dolce & Gabbana],” said Feola, adding there is to be lots of muscle put behind the fragrance to sustain it for years.

The designers had a fresh scent in mind “that could be associated with sports but also with a feeling of cleanliness, an energetic and fresh mood — almost Mediterranean,” said Gabbana.

The juice itself, composed by Dolce and Gabbana with the P&G fragrance creation team and Givaudan, is an aromatic patchouli, “which has always been one of the designers’ favorite olfactory notes,” said Feola. Also in the fragrance are watery, cardamom and musky notes, plus accents of rosemary and a woody Sequoia Forest accord.

The One Sport’s geometric bottle is meant to “give a sense of freshness, cleanliness and authenticity, with its transparent glass,” said Gabbana. “When I end my sports [training], I feel happy and clean, tired but serene, and we want to convey this sense of transparency with the bottle.”

P&G executives have great expectations for The One Sport, which builds on Dolce & Gabbana’s already strong men’s scent portfolio.

“We expect the sales for this to be incremental and to attract new consumers to the franchise,” said Feola. P&G executives would not discuss sales figures, but industry sources estimate The One Sport will generate $200 million in first-year retail sales globally.

Further, the sport segment is the fastest-growing category in the male fragrance industry, clocking a 37 percent sales gain over the past year.

The One Sport will be introduced in early February in the U.K., followed at the end of that month in Italy and the U.S. in early March. The rest of the world is to get the scent soon thereafter and prior to the summer Olympics.

In the U.S. — where the fragrance will be sold in specialty and department stores — the 1-oz. eau de toilette spray will be $45; the 1.6-oz. version, $57, and the 3.3-oz. iteration, $73. There are to be ancillaries, as well.

Dolce & Gabbana’s The One scent franchise started in 2006, with the introduction of a women’s scent. Two years later, a men’s version was launched. The other pillars in the brand portfolio are Light Blue and the classic Dolce & Gabbana scent lines.

The megastar appears on the January gatefold cover of the Condé Nast glossy men’s magazine, which hits newsstands Tuesday.

Shot by Inez van Lamsweerde and Vinoodh Matadin, the black-and-white images, styled by Nicola Formichetti, show Gaga wearing an Yves Saint Laurent jacket, Chanel pants and a theatrical silk tulle Philip Treacy hat. The shots are almost identical, except for an oversize pair of sunglasses shielding the artist’s eyes in one of the photos.

Inside the magazine, a feature written by Italian art critic Francesco Bonami highlights the link that connects Gaga’s performances to the world of contemporary art. Bonami grandly defines her as “a singing sculpture” whose “body is not a territory to be conquered, but a stage for new sets to be installed.”

Doneger was inducted into the Accessories Council’s Hall of Fame, which recognizes outstanding business leaders for their contributions to the accessories market. Doneger said the night was also significant for him because a portion of the evening’s proceeds went to the Henry Doneger Scholarship Fund, which honors the executive’s father; and the Accessories Design Program at FIT. In addition, the event coincided with The Doneger Group’s 65th anniversary.

“This is a very special recognition,” said Doneger, who attended with his mother, sister, wife and three sons. “I’m excited to celebrate with my family.”

Footwear News also caught up with Frank Zambrelli, who, in addition to running footwear brand Banfi Zambrelli, serves as chairman of the Accessories Council. Zambrelli said that, as an FIT alumnus, the evening was also meaningful for him. “When a student graduates from FIT, they’ve not just drawn a handbag or a drawn a shoe, they’ve put together a handbag. They’ve lasted a shoe,” he said.

Zambrelli also revealed that his company, which has focused solely on women’s footwear, is delving into men’s for fall ’12. Zambrelli said retailers who already carry the brand’s women’s styles will be the first to sell the new men’s line, which was created to fill the gap between casual and dressy styles.

“There’s a real hole in the [men’s market],” Zambrelli said. “It relates to how men are dressing today. When they are not going to work, they are still dressing up a little. They’re not going to wear an English brogue, but it also shouldn’t be a [sneaker]. [The new Banfi Zambrelli line] is decidedly modern, but that doesn’t mean avant-garde.”

Julia Goldin, global chief marketing officer for Revlon Inc., has unveiled a peek at the company’s 2012 global cosmetics print ads to WWD, one that aims to put forward an “aspirational vision a consumer can connect to” with eye-popping color and utilizing Revlon’s vast stable of talent.

In doing research on Revlon and the overall beauty consumer, Goldin found that the biggest unmet need in beauty is for the “colorful and complex woman,” one who tends be younger, who wears more makeup, who is more expressive with her makeup and who wears different looks. With that, Revlon aimed to tap into what this consumer wants to express and ultimately give her the tools to do that.

“It’s a much deeper positioning for us because it’s about giving her the tools, inspiration and encouragement to express herself, which should also give her more confidence,” said Goldin.

It’s also about having a point of view and projecting that in the ad campaign versus just using ambassadors as models for the makeup.

In the ads, Goldin said Revlon aims to create a world and a story, and how Revlon becomes a tool for expression. Emma Stone, Olivia Wilde and Halle Berry, said Goldin, represent three key archetypes that every woman can connect to.

For example, ads for Lip Butter present “playful, colorful expression” and feature Stone. ColorStay Eyeshadow ads, now with a 16-hour lasting formula, express an adventurous spirit, and feature Wilde. ColorStay’s new LongWear Enamel features Berry wearing a very sophisticated shade: “Amethyst.” In essence, Stone’s ads are “very much about bold color,” Wilde’s ads feature a “vixen, temptress look,” and Berry exudes “confidence.”

The ads were shot by Craig McDean; makeup was applied by Revlon’s Gucci Westman, who also chose all the colors and shades for the ads.

“What’s exciting about the stories we created is they are all revolving around product but also inspiring an expression for our audience,” Goldin said.

The filming of the ads for TV also inspired assets to be featured online. “ We very much believe in connecting with consumers in a variety of touch points,” Goldin continued. “Women are not just watching TV and flipping through magazines. They want to get more engaged, so we are giving them the opportunity to do that with how-to videos and more glimpses of the stars, and an honest perspective from them on how they use the products.”

All of Revlon’s communications in 2012 have been integrated to create one united visual. In-store merchandising systems will reflect 2012 visuals, too, with new images beginning in the first quarter.

Many of Revlon’s new items, such as ColorStay Longwear Nail Enamel and PhotoReady Sculpting Blush Palette, utilize prestige packaging.

“The packaging is absolutely a core element of this,” Goldin said. “Working with Fabien Baron and bringing that glamorous, bold sophisticated look. And the innovation as well, each in its own right, has a technological advancement.”

(ROXANNE ROBINSON-ESCRIOUT – WWD)

The jewelry brand, a venture between De Beers, the diamond miner and marketer, and LVMH Moët Hennessy Louis Vuitton, planted its first flag in Mainland China in May, with a 734-square-foot shop at Shin Kong Place in Beijing.

The man behind the rapid-fire retail expansion is François Delage, an Asia-Pacific expert who has been chief executive officer since 2009. Before taking up his current role, he was in charge of the De Beers wholesale diamond brand Forevermark, and had previously been president of Louis Vuitton Asia-Pacific.

During an interview at his Bond Street office next door to the De Beers Jewellery flagship, Delage said the openings in China would continue at the pace of three to five a year.

“We have about 30 cities on our radar for the long term,” said Delage, a Frenchman with an infectious enthusiasm for his work. “I don’t know of any ‘secondary’ cities in China. When people refer to secondary cities, they are talking about the population of London and Paris combined — more than 10 million people.”

Although the first Mainland store opened just seven months ago, the Chinese already know the De Beers name: “The first thing a Chinese consumer says when they hear it is, ‘A Diamond Is Forever,’” said Delage, referring to the longtime advertising slogan used by the Diamond Trading Co., an arm of the De Beers group.

As for the Chinese fine jewelry customers, Delage said they are tough: “They are very discerning, knowledgeable and aware. You cannot impress them — you have to earn their respect.” He added that the Chinese — generally speaking — have laser vision when it comes to evaluating the quality of a stone.

“They are used to using their eyes. Take jade for instance. You can buy a piece of jade for 5 [yuan] or for $5 million. The Chinese look closely at the translucidity, the color gradation. That is also a reason why fancy colored diamonds and white solitaires are such a success in China,” he said.

Delage said women as well as men are buying diamonds. Traditionally, the Chinese luxury customer is the male, the one who controls the family purse strings.

“In addition to the young couples looking for an engagement ring, there are women who are buying for others and for themselves. My very first client in Tianjin was a woman in her mid-20s who came in with her mother. She was wearing a chain around her neck and wanted something to hang on it,” he said.

She walked out with a pendant from De Beers’ Talisman collection, which features colored rough diamonds arranged in concentric circles.

Delage has more than China on his radar: There are some 41 De Beers Jewellery stores worldwide, 10 of which are franchises. In the first quarter of 2012, he plans to open a flagship in Moscow, and units in Kuala Lumpur, Malaysia, and Baku, Azerbaijan. The brand has recently refurbished its Dubai unit and opened a store in Almaty, Kazakhstan.

Retail rollout is only part of the story. Since arriving in 2009, Delage has kept a low profile as he set about tweaking the brand image and perception and the products.

“I really set out to capitalize on the magic of the brand, to become the diamond jeweler of choice, of reference. After all, we are the sole, worldwide diamond jewelry brand. We’re a specialist, and we don’t do other gemstones. And we have 120 years of expertise in diamonds from De Beers.”

(Asked about Anglo American becoming De Beers’ majority shareholder last month, Delage said it has had no impact on his company’s strategies going forward. Anglo American bought out the Oppenheimer family’s stake in the miner for $5.1 billion, boosting its shareholding to 85 percent.)

Delage said his aim has also been to give the brand a gentler, lighter, more feminine feel in everything from the stores to the products to the press materials. “We want customers to feel an emotional bond with the brand,” he said.

The brand’s catalogues now have white or pastel backgrounds rather than dark ones with the logo in a delicate black typeface. It’s a stark contrast to the dark, very corporate look of the former branding.

Delage has built on the best-selling collections, adding even more flowers to the pieces in the Wildflowers collection or tweaking the Talisman line by using diamonds with softer, rounded edges rather than angular ones. He has added new collections at both ends of the price spectrum.

At the very high end, there is Swan Lake, a collection of pastel diamond jewelry inspired by the rhythm of breaths and precise movements of a prima ballerina. The collection is meant to be a showcase for the company’s diamond expertise and for the variety of cuts and gradients it uses. Prices start at 40,000 pounds, or $62,000 at current exchange, for a pair of earrings. A second high-jewelry launch is set for 2012, although Delage declined to reveal any details.

At the entry level, there is the Azulea collection of stackable diamond solitaire rings with textured gold bands. They cost 700 euros, or $930.

Earlier this year, the jeweler revamped its Web site, which now operates in five languages worldwide, and launched a book to mark its 10-year anniversary. “De Beers Jewellery” (Assouline, 2011) is a coffee-table book that celebrates diamonds, their cultural history and their manufacture.

Delage said he believes it’s an ideal time to be in the diamond jewelry business: “Times of crisis are opportunities. People are cutting out the superfluous and editing their purchases so that they can pamper themselves. Consumption is more self-conscious today. Consumers are going for the right stuff.” (SAMANTHA CONTI – WWD)

SESAME STEP, Miami
1. Kenneth Cole ballet flats
2. Umi girls’ driving mocs
3. Converse Beverly boot for girls with faux-fur trim
Top fall trend: “Girls’ deck shoes from Sperry Top-Sider have been doing fantastic,” said Eddie Quintana, president. “Also, metallic continues to sell extremely well.”

PIGGY TOES, Chicago
1. Girls’ ballet flats by Naturino, Bloch and O & I private label collection
2. Boys’ waterproof looks from Bogs and Naturino
3. Ugg classic short and Bailey Button boot
Top fall trend: “Versatility,” said Michael Thomas, co-owner. “Consumers want shoes that can be dressed up or down — one shoe that’s multi-purpose. People are not spending as much and want to stretch their dollars.”

LITTLE FEET AND MORE, Denver
1. Ugg
2. Keen
3. Sorel
Top fall trend: “This time of year, we have success with Ugg, along with snowboots, as customers are getting ready to go up to the mountains for Christmas vacation,” said Buddy Saper, co-owner. “[For girls], fashion boots are being worn with skinny jeans. And parents are coming in for cotillion and holiday looks and buying Sperry Top-Sider penny loafers and dress shoes. This season, people are getting more dressed up [than in the past].” ( ERIN E. CLACK and BARBARA SCHNEIDER-LEVY- WWD)

Designed by architect Raffaella Bortoluzzi, the first-floor space housing Pomellato’s fine jewelry is composed from neutral stone materials with black lacquer and gold accents, while the upstairs Dodo space features gold walls with bright red accents. Retail prices range from several hundred dollars for a Dodo charm bracelet to $5,000 and upwards for fine jewelry.

According to chief executive officer Andrea Morante, the company is expanding its retail footprint geographically. “We are following a typical standard whereby when you have a fairly good European platform, you come to the States at the closest entry point, the East Coast, and work your way west,” he said. Calling the Chicago store, which also opened this year, “the real test for the rest of America after New York,” Morante said the Beverly Hills location was strategic in terms of reaching the California market, Asian tourists and Hollywood stars.

Tilda Swinton, who has appeared in the company’s television and print ads for the past three years, is set to host an opening party next month during awards season.

Morante predicted that once Chinese customers begin traveling to the States en masse, Los Angeles will be an obvious entry point. “Trying to follow the Chinese consumer will be name of the game in the following years, and making our next big retail push in China will be a priority,” he said. Also on his hit list are stores in Tokyo, Singapore and South Coast Plaza in Costa Mesa, Calif. (MARCY MEDINA – WWD)