Two of the fashion world's biggest names are going to prison. Domenico Dolce, Stefano Gabbana, and their five co-defendants were found guilty of tax evasion charges in Italy. The designers were sentenced to one year and eight months of prison time. They are expected to appeal.
UPDATE: although Women's Wear Daily doesn't mention in its story that the designers' sentences are suspended, the Financial Times and other outlets are reporting that they are. So it looks like no jail time for these two, after all.
The case, which has dragged on through the Italian court system for years, concerns the taxes on transactions related to the sale of the Dolce & Gabbana brand to a Luxembourg-based holding company in 2004. The Italian prosecutor's position, following an investigation in 2008, was that the Luxembourg company was for all purposes controlled and operated in Italy — and that it therefore should have been subject to taxation as an Italian corporation. [WWD, FT, LATimes]
Georgia May Jagger and her real-life boyfriend, Josh McLellan, were shot by Olivier Zahm for Sisley's latest campaign. [FGR]
Lucky editor-in-chief Brandon Holley asked Anna Wintour, in her new capacity as Condé Nast artistic director, for advice about how to turn around the magazine's long slide in ad pages. Wintour brought on former Teen Vogue senior editor Eva Chen to consult on Lucky. Now Chen is the editor-in-chief, and Holley is out of a job. Chen is the first Asian-American to ever helm a Condé publication. [WWD]
And AdWeek promptly published a story about the news that included a photo of the wrong Eva Chen. And as anyone who has ever so much as glanced at Chen's well-followed Instagram feed or a street-style Web site would realize, the two women really don't look anything alike. [Racked]
George Zimmer, the "You'll like the way it looks — I guarantee it!" guy and the founder of Men's Wearhouse, has been fired by the company. Fashionista takes a look back at some of his best work. [Fashionista]
• Balenciaga is reportedly suing former creative director Nicolas Ghesquière over comments he made to the magazine System. Balenciaga alleges that Ghesquière breached a confidentiality agreement. The designer criticized aspects of the brand's management, including merchandizing and business leadership, and said that while working there he "began to feel as though I was being sucked dry." [Vogue UK]
• Today in stupid questions, Stylist asked Sofia Coppola which was more of an honor — Marc Jacobs naming a handbag for her, or winning an Oscar? Coppola replied, "I thought the bag was nice but it didn’t make as big an impact on my life. The Oscar helped me with my career, my work." [Stylist]
• Alexander McQueen signed a fragrance licensing deal with Proctor & Gamble. [WWD]
• Michael Kors' total compensation was $7.6 million last year. That sounds like a lot, but in 2011 he made almost twice that. [WWD]
• Mulberry gave Angela Merkel, Shinzo Abe, Barack Obama, David Cameron, and all the other world leaders who attended the G8 summit a briefcase. [Telegraph]
• Shareholders in the luxury conglomerate known as PPR officially voted to approve head Françoi-Henri Pinault's motion to change the company's name to Kering. [WWD]
• The Camuto Group, which owns brands including Vince Camuto, Antonio Melani, and Gianni Bini, and holds the master license for the Jessica Simpson fashion brand, has reportedly been working for several months with Goldman Sachs to either find an investor, a buyer, or other financing. The company denies it is for sale. [WWD]
• During the quarter just ended, H&M saw a 10% year-on-year drop in profits. It still made $700 million. Same-store sales fell by 4%. [WWD]