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INSIDE FORTUNE: Special Issue — The Business of Style

Highlights of the September 1, 2008 Issue of FORTUNE
Available on newsstands August 25, full stories are available at www.FORTUNE.com.

FEATURES: THE LUXURY BUSINESS

KING OF COOL
J. Crew's Mickey Drexler is closely watched in his industry because of the way Gap, which he ran for 19 years, transcended retailing to become a pop-culture phenomenon. In 2006, he took J. Crew public and now he's taking it upscale and launching a new brand called Madewell. FORTUNE's John Brodie details Drexler's reinvention of a retailing icon and why downturns are not for wimps.

THE RIGHT ADDRESS
Every city has one — a retail thoroughfare that houses the most exclusive stores. Real estate slowdown or not, these luxury corridors are still thriving — for now, at least. FORTUNE's Beth Kowitt brings you some of the world's priciest streets, and the going rate to join the neighborhood.

LUXE IN FLUX
The $270 billion luxury business thought it was recession proof, but after five years of strong growth, the business is hunkering down to withstand a triple onslaught: fast-rising costs for everything from diamonds to freight; a consumer retrenchment in the core U.S., European, and Japanese markets; and, for the predominantly European producers, a sharp appreciation in the value of the euro against the dollar and other currencies. Now anxiety is higher than a pair of Jimmy Choo pumps. FORTUNE's Peter Gumbel addresses the question: Is an opulence backlash brewing?

PRADA GOES SHOPPING—FOR MONEY
Not all is well in the world of haute couture. By some measures, Prada lags behind its peers. Cash flow as a percent of revenue is 19%, lower than any of its competitors'. To compete, Prada needs cash badly, not just to expand but also to pay down debt, much of it incurred in an ill-conceived acquisition spree. The Milanese fashion house has decided to raise cash by going public. FORTUNE's Suzanne Kapner asks: But at what price?

THE STYLE COUNCIL, 2008
Nothing is more elegant than a fat bottom line, as the moguls, merchants, and master craftsman pictured in FORTUNE's second annual luxury portfolio will tell you. FORTUNE's Eugenia Levenson highlights this luxury collection of photos taken by Ben Baker.

ADDITIONAL FEATURES:

LOOKING FOR TROUBLE
Richard Perry, hedge fund superstar, is making big bets on distressed securities. But can his sterling record survive the most perilous market in years? FORTUNE's Marcia Vickers details the game plan of the man who's looking for trouble.

THE BOTTOM LINE
When we think of innovation, it's easy to point to devices like the iPhone as exemplars of creativity. But if innovation is really just a $10 word for using new ideas to improve upon something, then the less celebrated ingenuity that's been poured into building a better diaper over the years can make it seem as wondrous as anything coming out of Apple. FORTUNE's Jia Lynn Yang tells how Kimberly-Clark gave birth to a lucrative new product in this FORTUNE 500 series special feature.

GET A LIFE!
FORTUNE's Paul Keegan asked three of the top productivity gurus on the market to give him a free taste of their work. The three—Stephen Corey, David Allen, and Jim Loehr — have each written a successful book; each has spent decades advising FORTUNE 500 companies. Keegan read the books, attended a seminar, and got personal coaching—and now he's reporting back.

FIRST
Harvest Time Across the Great Plains, American wheat farmers outsource cutting to custom harvesters with fleets of combines. The Box Office Indicator Strong ticket sales and weak markets go hand in hand. The Upside of Failure A new book, Billion Dollar Lessons, makes the point that failure yields far more wisdom than success. The Deal How to solve the financial crisis? Play for time, pray for markets to turn. Banking's French Twist France's BNP Paribas may be the bank least affected by the financial meltdown. Value Driven Our easy access to plastic is about to dry up — and with it our ability to fake living the good life. Marketing Programmers are figuring out how to save TV advertising from TiVo: Make commercials seem like content.

INVESTING
These Stocks Are Rolling Railroads are benefiting from the global commodities boom — and the fact that trains are more fuel-efficient than trucks. Right on Your Money More people are using reverse mortgages to unlock their home equity for retirement, but the costs are steep. Fastest-Growing Companies Update Diet company NutriSystem, No. 1 on Fortune's 100 Fastest-Growing Companies list in 2007, is stalling in the economic slowdown.

TECHNOLOGY
A Chip Too Far Cutting-edge "multicore" microchips have gotten so complicated that companies from Microsoft to Apple to Intel say software writers can't keep up. The result could hurt computer sales. Genomes "R" Us Pacific Biosciences says it will soon be able to decipher genetic code faster and cheaper than ever.

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CONTACT:

Brett LeVecchio
212-522-0361
brett_levecchio@timeinc.com

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