First and Formots
Entrepreneurship is a marathon, not a sprint.
I get an incredible response to the first edition of this newsletter! Seeing over 130,000 views on LinkedIn is both humbling and energizing. Thank you to everyone who took the time to read, share and engage with the content.
Your overwhelming support has me even more fired up for this second edition. I hope it will help you navigate the rollercoaster ride of building a business in fashion, luxury watches and eyewear industries.
? To be an entrepreneur, you need to have the spirit of a top-level athlete. Every day, for a very long time. Believe me, for you this is just the beginning." Bernard Arnault à Vivatech.
As an entrepreneur, it's essential to appreciate the small wins and moments of success, as they can serve as fuel for your journey. However, it's equally crucial to maintain a balanced perspective and not let these fleeting moments of triumph cloud your judgment or divert your focus from the challenges that lie ahead.
Success in the entrepreneurial world is often a series of peaks and valleys, and it's important to savor the high points when they arrive. Celebrate your accomplishments, no matter how modest they may seem, because these moments of triumph can be few and far between. Take the time to recognize the hard work and dedication that brought you to this point and allow yourself to bask in the satisfaction of a job well done.
However, it's equally important to remember that these moments of success are often short-lived, and that new challenges and obstacles are always lurking around the corner. As an entrepreneur, you must be prepared to pivot quickly and adapt to ever-changing circumstances. Savor the moments of success, but don't let them distract you from the work that still needs to be done. Embrace a mindset of continuous improvement and be prepared to tackle the next obstacle with the same tenacity and determination that brought you your previous triumph.
I'm so grateful to be on this journey together. Let's continue pushing boundaries, thinking boldly, and pursuing our dreams.
?The adventure continues!
Jan Eryk
The Appointment Book
Melanie Soucek is promoted to General Manager of Spanish jewelry label Aristocrazy. She replaces Francisco álvarez, who is leaving the jeweler.
Marie-Laure Dubuisson Minnaert is appointed General Manager of French perfume and fashion house Marc-Antoine Barrois.
Sébastien Beal is appointed COO of Showroomprivé. He also joins the executive committee.
Sergio Odriozola is appointed CEO of Spanish sneaker group Hoff.
Solange Potel is appointed Deputy General Manager in charge of operations at Intersport France. She will be responsible for structuring the company's next stage of growth, with a particular focus on supply chain, tech and data". The group has nearly 300 members and 830 stores. Sales will reach 3.7 billion euros in 2023, up 11.2% on the previous year. The brand absorbed the Go Sport network last year.
Jonathan Ram left Clarks after two years at the helm of the footwear company, following its takeover by LionRock Capital. The former HanesBrands and New Balance executive has no replacement. Clarks chairman Colin Li and other directors will form an interim executive committee to run the company, pending the appointment of a new CEO.
Stefano Rosso, son of Renzo Rosso, chairman and founder of Italian fashion group OTB, has been appointed CEO of Marni. He will report directly to Ubaldo Minelli, CEO of OTB. He succeeds Barbara Calò. He will accelerate Marni's positioning in the luxury market. Marni sales grew by 8.6% in 2023.
Manel Echevarria has been appointed Managing Director of Ecoalf, a fashion brand with an eco-responsible positioning. Founded in 2009 by Javier Goyeneche, Ecoalf achieved sales of 60 million euros in 2023, and expects to grow by 25% in 2024 and reach 150 million euros in 2027.
Marine Co?c has been appointed Director of Operations for French fashion, home and leisure retailer Noz, founded in 1976 by the Adrion family. The company achieved sales of 712 million euros in 2023. It has 320 sales outlets and employs 6,000 people. Clothing accounts for a third of sales and has been boosted by the arrival of inventory from ailing brands such as Cama?eu, San Marina and Minelli.
Sun Choe, Product Director, leaves Lululemon Athletica. Jonathan Cheung, Global Creative Director, will now oversee product design and innovation.
Seth Ellison was Managing Director of California lifestyle brand Brixton. He was Vice President and Chief Commercial Officer at Levi Strauss & Company.
Nicolas Berdugo, ex-managing director of Mauboussin, is appointed President of Groupe Seaport ODLM, eyewear manufacturer for brands such as Ba&sh, Carven, Paul&Joe, Moleskine and Fa?onnable. He takes over from co-founder Fran?is Kessous, who becomes Chairman of the company's Supervisory Board. His son Guillaume Kessous will continue to operate as Managing Director, a position he has held since 2021, when the group came under the control of the B&Capital fund.
Thibaut Demange has been appointed Italian Director in addition to Director France of the Bestseller Group. Its brand portfolio comprises some fifteen labels (Jack & Jones, Vila, Vero Moda, Pieces, Only, Y.A.S...). At the end of 2023, Bestseller unveiled the Annarr label, targeting men with a premium offer. In its 2022/23 financial year, the group saw sales rise by 5% to 4.96 billion euros, while pre-tax profit fell by 19% to 664 million euros. Its network comprises some 2,700 sales outlets, 600 of which are managed by partners, as well as 16,000 multi-brand retailers.
Silvia Galfo is appointed President of L'Oréal's luxury division (Lanc?me, Kiehl's, Yves Saint Lauren Beauté...).
Sandra Stangl, President and CEO of Banana Republic, leaves the Gap Inc. brand.
Matteo Sgarbossa is appointed CEO of Balmain, owned by Mayhoola, the investment company of Qatar's ruling family. He succeeds Jean-Jacques Guével. Matteo was International Director at Givenchy. He will be responsible for “supporting the company's expansion and further accelerating Balmain's international success in all luxury regions”.
Franco Fogliato leaves Salomon, the French ski and trail running specialist owned by the Amer Sports group. Salomon has forecast sales growth of 22% in 2023.
Marco Bizzarri, former CEO of Gucci, joins the board of Golden Goose, owned by Permira Holdings LLP. Golden Goose is expected to be floated on the Milan stock exchange in 2024 at a valuation of between 3 and 4 billion euros.
Laura du Rusque, ex-Kering, is appointed Managing Director of Ganni a Danish brand founded by Ditte and Nicolaj Reffstrup. She replaces Andrea Baldo. Agnni has been majority-owned by L Catterton, LVMH's investment vehicle, since 2017. The brand achieved sales of over 120 million euros and employs 400 people. It operates 45 directly operated boutiques in Europe, the United States and Asia, and has 600 partner outlets.
Marco Ellerker has been appointed President of Marketplaces for Deckers Brands, a footwear specialist whose brands include HOKA, UGG, Teva and Sanuk. Annual sales were $4.3bn, up 17.9% at constant exchange rates, driven by the HOKA and UGG brands.
Alessandro Michele, ex-Gucci, is appointed Creative Director of Valentino. Valentino is controlled by the Qatari company Mayhoola, which sold a 30% stake to Kering in 2023.
Stefano Cantino, ex-Louis-Vuitton, is appointed Deputy General Manager of Gucci.
Txampi Diz, ex-Balmain, is appointed Marketing Director of Casablanca.
Cyril Goulet, ex-Chauss'expo, is appointed Managing Director of Gémo, the family fashion brand of the Eram group. The company achieves annual sales of 890 million euros with around 430 points of sale.
Julia Goddard, ex-Alexander McQueen, is appointed Managing Director of Harvey Nichols, a luxury department store owned by Dickson Poon. Harvey Nichols achieved sales of ￡216.6 million.
Haider Ackermann is appointed Creative Director of Canada Goose. He is the brand's first creative director. Ackermann's first collection is scheduled for Autumn-Winter 2024.
Armelle Poulou, CFO, and Mélanie Flouquet, Strategy Director, join the Kerings Management Committee. This brings the proportion of women on the Executive Committee to 46%.
Marie Forssenius is appointed Managing Director of Filippa K. The brand has a network of 21 boutiques in Northern Europe and is distributed by around 400 multi-brand retailers worldwide. It achieved annual sales of 45 million euros.
Jack Schwefel, CEO, leaves Vince Holding Corp. The New York-based company has appointed David Stefko, its current director and former CFO, as interim CEO. Third-quarter sales were down 14.7% at $84.1 million.
Mary Katrantzou is Bulgari's first creative director for accessories. The designer will be responsible for the creative direction of Bulgari's leather goods and accessories, including the high jewelry handbag and clutch collection.
Damien Defforey, President of Stokomani since June 2022, leaves the group.
Félice Guilmeau is appointed style director of Cyrillus, the French fashion and home decoration brand for the whole family. She replaces Géraldine Dufour. In 2021, Cyrillus was sold by the Alpha PrivateEquity fund to the MGA Paris group, which also owns the Des Petits Hauts and Harris Wilson brands. Since then, the brand has moved upmarket and further developed its lifestyle offering, particularly its furniture segment.
Gaelle Collet becomes chief brand and communications officer for Alexander McQueen.
Uniqlo and Inès de la Fressange decide to end their alliance after ten years of seasonal fashion capsules.
Tim Hamilton is appointed vice-president of menswear at Nike. He will report directly to the artistic director of Nike's men's lines, a position that has yet to be filled.
Remco Engelhart is promoted EMEA CEO at Japanese-based contact lens maker Menicon.
Silvia Bernardini is appointed Managing Director of Ananas Anam Group, parent company of Pinatex and Pinayarn, specilaiste to leather alternatives made from pineapple leaves.
Dao-Yi Chow, an experienced New York designer, joins the New Era Group as Vice President, Creative Director of the brand. New Era thus confirms its ambition to transform itself into a lifestyle brand. Since its birth in 1920, the American label has specialized in caps for sports teams across the Atlantic, first in baseball, then basketball and American soccer.
Caroline Brown is appointed President of The North Face brand, part of the VF Corporation group.
Fran?ois Mbody, previously with Système U, becomes Deputy General Manager of Sport 200 France. The group posted 2023 sales of 841 million euros.
Sun Choe, formerly ofLulumon, is appointed President ofVans,a brand of the VF Corporation group.
Virginie Viard, Chanel's artistic director for 30 years, is leaving the group. “A new creative organization for the house will be announced in due course,” Chanel said, without naming a successor. Chanel's decision to part ways with Virginie Viard also comes a month after Bruno Pavlovsky, president of Chanel's Fashion and Accessories department, denied that a change was in the works. "Virginie is doing very well. She's in great shape and is inspired by Marseille in this collection. You know, since she took over from Karl Lagerfeld, some people are talking about other designers at Chanel. But let me be clear: Chanel is not looking for a new artistic director. And you can print it,” the CEO told the press at the time.
Frédéric Arnault is appointed Chief Operating Officer of Financière Agache. Financière Agache is a holding company controlled by Agache (a limited partnership controlled by the Arnault family) and holds majority stakes in Dior SE and LVMH. Frédéric Arnault succeeds Nicolas Bazire in this role and represents Agache on Financière Agache's Board of Directors. He is also Managing Director of LVMH's Watch division.
Veronica Leoni has been appointed Creative Director of Calvin Klein. Her appointment means there will be “a return to the catwalks soon”, said Calvin Klein. Veronica Leoni, a finalist for the LVMH 2023 prize, is the founder of the Quira fashion label.
Philippe Thirache, ex-Gémo, has been appointed president of Stokomani, a fashion and household goods clearance chain.
PVH announces the departure of Tommy Hilfiger's General Manager.
Perfumer Jean Jacques leaves Caron in September. He had been with the company since 2019, the year of its relaunch.
Rickie De Soe, vice president and fashion director at Nordstrom, becomes a board member of Vestiaire Collective. She said, “I see tremendous opportunities to help VestiaireCollective's leadership team increase brand awareness and accelerate growth in the US.” The company recently relocated its global CEO, Maximilian Bittner, to New York.
Laura Miele is appointed independent director of On.
Megan Grant is appointed General Manager of Louis Vuitton's Americas region.
Pierre-Emmanuel Angeloglou is appointed CEO of Fendi (LVMH group) and remains CEO of LVMH Fashion Groupe.
Luciano Benetton steps down as Chairman of Benetton
Luciano Benetton, the 89-year-old co-founder of the eponymous textile empire, has announced his intention to step down as chairman of the Italian family-owned group after accusing CEO Massimo Renon of plumbing the group's accounts.
"I trusted him, and I was wrong. I was betrayed in the truest sense of the word. A few months ago, I realized that something wasn't right and that the image of the Group that management was presenting to us at board meetings was not real," he told the Corriere della Sera newspaper.
"Before I leave the Group, I want to explain what happened with the transparency that is my hallmark, without shirking my responsibilities," he said. According to Luciano Benetton, Massimo Renon left behind "a 100-million-euro hole".
The company was founded in 1965 in northeastern Italy by four brothers and sisters. Luciano Benetton took over as CEO in 2018 in an attempt to turn the company around, but having Massimo Renon as CEO did not yield the desired results. "I had left the company in 2012 when it was in good health, with sales of 2 billion euros and profits" Luciano Benetton recalls.
Benetton shareholders are scheduled to meet on June 18, when Massimo Renon's mandate will not be renewed and he is expected to be replaced by Claudio Sforza, former CFO of Italian postal group Poste Italiane and CEO of gaming company Gamenet.
The Financial Book
Gucci repositioning
Kering's sales fell by 10% on a like-for-like basis, mainly as a result of an 18% decline in Gucci sales on a like-for-like basis.
Historically, Gucci is more a fashion than a luxury brand, and more dependent on fashion cycles. This fashion positioning has been very beneficial to the brand for many years, including during the period of designer Alessandro Michele, as sales have risen from 3.9 billion Euros in 2015 to 10.5 billion in 2022. As a result, Gucci is more dependent than other houses on Asian and aspirational customers. Younger, less affluent customers who prefer trendy products. Aspirational customers are affected by inflation, and Gucci has no strong storytelling around iconic pieces such as the Kelly bag by Hermès.
Gucci has always been more focused on the artistic director than on iconic pieces. Yet the house could build on the Jackie bag, for example. This means changing the storytelling. At Hermès, we don't know who created the Kelly bag, but we do buy its story.
The group has undertaken to reposition the brand. By changing governance and developing a strategy of elevation.
“We didn't have enough expertise and talent in place in key positions of the company”, declared Fran?ois-Henri Pinault in February, pointing out that luxury goods require “very strong” expertise in sales, merchandising and sourcing. Gucci's governance has been reviewed, with the appointment of Jean-Fran?ois Palus as head of Gucci, and Stefano Cantino, formerly of Louis Vuitton, in charge of defining the brand's strategy.
“Right now, Gucci is not in the right place in terms of positioning, being perceived as not high-end enough or not affordable enough,” said Kering CFO Armelle Poulou.
The company is working to move upmarket towards the very high-end and to improve the perception of Gucci in terms of exclusivity and desirability.
Finally, for the Kering Group, it is essential to have at least a second engine. Today, Gucci contributes half of Kering's sales and two-thirds of its operating profitability. Saint Laurent is a good candidate.
LVMH has two engines: Louis Vuitton and Dior, and the objective given to Michael Burke (CEO of LVMH Fashion Group) is to have five engines within 5 years. The Prada group is working hard to grow the Miu Miu brand, so as not to be solely dependent on Prada.
Burberry’s efforts to thrive as a top luxury player continue to falter.
Revenue remains flat in FY 2023 on a reported bases and operating profit slump by 36% and operating margin came from 21.2% to 14.1%
After a decade of turnaround attempts, Burberry’s efforts to thrive as a top luxury player continue to be difficult. The house is dependent on Asian market and on aspirational customers as for Gucci (see above). One the same time, Burberry it is more a logo brand, the t is not a easy positioning during a predominance of the ‘quiet luxury’ trend and less diversify that its competitors.?
Burberry is making progress with its brand elevation strategy and the priorities for FY25 presented on the paper makes sense, but could they achieve it?
Burberry Priorities for FY25
The convergence of luxury markets will drive further expansion.
The convergence of personal luxury brands through the combination of in-store experiences, restaurants, hotels and other experiential venues will enable customers to go beyond the object itself to the feelings and experiences of owning and wearing it. It's about creating a new brand experience.
Dolce & Gabbana has joined forces with Spanish developer Sierra Blanca Estates to create the Design Hills real estate complex in Marbella. The complex comprises housing, public space, retail, leisure, gastronomy and art.
VIP clients of the fashion house were given priority access to the marketing.
The homes range in size from 280 to 900 square meters and will be fully furnished with Dolce & Gabana Casa creations, with a starting price of 4 million euros. The project is scheduled for completion in 2026.
The house also recently unveiled its real estate project in Miami, 888 Brickell Condo Hotel, mixing private residences and hotel rooms with private entrances to guarantee the tranquility and privacy of all occupants. 888 Brickell will be the city's tallest building, at almost 320 meters high.
Dolce & Gabbana called on studio M2Atelier and developer JDS Development Group.
“After the launch of our Casa Collection in 2021, it seemed natural to us to continue with a hotel and residential strategy embodying the best of Italian hospitality. [...] For us, Miami's vibrant cultural atmosphere is the perfect backdrop for our global real estate debut with an approach centered on 'fatto a mano' (handmade). The project will embody the very essence of the Dolce & Gabbana universe: a luxurious and timeless design experience” said Alfonso Dolce, CEO of Dolce & Gabbana.
Versace, opens a 271-room, 12-storey hotel in Macau, the Palazzo Versace, located a stone's throw from the first Karl Lagerfeld Hotel, opening in May 2023. The rooms are furnished with linens and lamps from the Versace Home line. For this project, the Milanese fashion house relied on SJM Resorts S.A., a subsidiary of Sociedade de Jogos de Macau.
This is Versace's second luxury hotel in the world, after the one in Dubai in the United Arab Emirates. In 2000, Versace inaugurated its first Palazzo Versace Gold Coast in Queensland, Australia. Last year, however, it did not renew its agreement, withdrawing its brand from the hotel, along with the furniture and some of the decor.
Elie Saab, in 2020, has signed a licensing agreement for an offer linked to the home universe, with the Swiss private equity company Corporate Brand Maison SA - part of the A++ group. Corporate Brand Maison is developing the Lebanese couturier's home universe along two axes. On the one hand, retail, with the design, production (and worldwide distribution) of home furnishings through its showrooms and strategic partners. A home textile line with bed and bathroom sets has just been added to the range.
On the other hand, the “residential” side, with buildings in London, villas in Marbella and projects in Vietnam and Sao Paulo. The company takes care of structures, environments and decorations. The group wants to extend the apart-hotel formula, with a ski resort in the Caucasus, projects in Istanbul, Casablanca and the Caribbean. These are residential structures designed and furnished in the Elie Saab style, offering a range of services such as spas and restaurants.
The brand also plans to open its first Elie Saab hotel, “distilling the brand's impeccable and inimitable style in all its facets and offering a very high level of service.”
Fendi diversifies into real estate. The Roman luxury house of the LVMH group has announced its participation in a project for very high-end private residences in Crans-Montana, in the heart of the Swiss Alps, in partnership with the Swiss property developer Steiger&Cie/Sotheby's International Realty. The complex is called “Fendi Private Residences”.
The project was designed by Roman architect Marco Costanzi, who previously designed the Fendi Hotel in Rome, with the assistance of Comina Architecture, Architects and EneaLandscape Architecture.
Furniture and decor were entrusted to Fendi Casa, the brand's home line. The first units of Fendi Private Residences are scheduled for completion by the end of the second quarter of 2026.
Eram Group invests in Colombus Café and Krispy Kreme in France
The Eram Group (Eram, Bocage, Gémo, Mellow Yellow...) has acquired a 10% minority stake in Wagram Food Service. Wagram Food Service develops the Colombus Café (coffee shop), Krispy Kreme (donuts) and Copper Branch (vegetarian canteen) restaurant chains in France.
For the Eram Group, this investment is part of a diversification process begun four years ago, in parallel with its ongoing fashion activities. By 2020, it had become a franchisee of Colombus Café outlets and had also set up the energy management consultancy Oksigen. In 2021, the company will franchise a Pitaya restaurant (Thai street food).
Wagram Food Service will generate sales of nearly 150 million euros by 2023 and aims to reach 500 million euros by 2028. The Eram Group will achieve sales of one billion euros in 2022, with a target of 1.4 billion in 2023.
Simon Porte Jacquemus declares his desire to remain independent
Simon Porte, at the Chevalier des Arts et des Lettres award ceremony, said he wanted to remain independent. He wishes to concentrate on the growth of his brand, and after the departure of his CEO, Bastien Daguzan, last December, he has taken over the management of his house. He also wishes to accelerate the development of his direct boutiques, in particular in London at 33 New Bond Street and in New York (no location yet defined).
The company expects sales to exceed 200 million euros by 2022, and to reach 280 million by 2023.
Giorgio Armani “does not rule out” a merger or IPO in his succession plan
Three months before his 90th birthday, Giorgio Armani has hinted at possible changes to his company's capital once he is no longer at the helm. As a reminder, Giorgio Armani has always fought to maintain the independence of Giorgio Armani SpA, one of the world's leading luxury houses, valued at between 8 and 10 billion euros.
“Independence from the big groups could still be a driving value for the Armani Group in the future, but I don't think I can rule anything out,” said Mr. Armani in a written interview. “What has always characterized the success of my work is the ability to adapt to change”.
“I'm not currently considering a takeover by a major luxury conglomerate,” Giorgio Armani wrote in a series of answers to Bloomberg's questions, a format he prefers to a direct interview. But as I said, I don't want to rule anything out a priori, as this would be a “non-entrepreneurial” move.
Giorgio Armani, who controls almost all of Giorgio Armani SpA and has a net worth of $6.6 billion according to the Bloomberg Billionaires Index, is also leaving the door open to a possible IPO. “We haven't discussed going public yet, but it's an option that could hopefully be considered in the distant future,” said Giorgio Armani.
Prada has no plans for major acquisitions and wants to focus on its brands
Prada is not currently considering any major acquisitions. According to its CEO, Andrea Guerra, the Italian group wants to concentrate on developing its own brands.
“Today, we must first and foremost nurture our brands,” said Andrea Guerra, CEO Prada Group. As far as mergers and acquisitions are concerned, “I have no news to give you”, he asserted.
Andrea Guerra ruled out any major deals for his group in the short term but expects more M&A activity in the sector over the next few years. “In the next two, three, five years, a lot of things are going to happen, there's going to be consolidation,” he analyzed, without, however, venturing to name names.
In recent years, Prada has acquired a stake in tannery Superior and has invested in Italian cashmere manufacturer Filati Biagioli Modesto, which supplies Zegna among others, and in knitwear specialist Luigi Fedeli e Figlio.
The Italian group has just inaugurated a production site in Umbria, announcing an investment of “over 70 million euros” in its industrial facilities. Lorenzo Bertelli, Prada's “heir”, does not rule out the option of an acquisition in the sector.
According to Andrea Guerra, Prada wants to continue investing in Italy. Its strategy of regrouping small suppliers could help it to grow and gain stability. Luxury goods companies are increasingly securing their know-how, and the Italian group is no exception to the rule.
LVMH to consider options for Marc Jacobs in light of interest from potential buyers
LVMH is exploring its options for its Marc Jacobs fashion brand in light of interest expressed by some potential buyers, including investment funds. This sale would enable LVMH to divest an affordable luxury brand and focus on the very high-end. LVMH owns around 80% of the brand, while Marc Jacobs, 61, and Robert Duffy own the balance. The brand was founded in 1984.
LVMH rarely sells brands from its portfolio. One of the last major disposals was in 2016, when the group sold Donna Karan and DKNY for an enterprise value of $650 million.
Brunello Cucinelli acquires the Sartoria Eugubina atelier and announces the construction of a factory
The Italian cashmere house has acquired the Sartoria Eugubina atelier, which was already its supplier. Specializing in high-end tailoring and made-to-measure garments for men and women, the company's customers include Dior, Ferragamo and Ralph Lauren. The amount of the transaction was not disclosed.
On the occasion of the acquisition of Sartoria Eugubina, located in Gubbio, Umbria, 60 kilometers from Solomeo, Brunello Cucinelli announces the construction of a new factory in the town.
The Roger Zannier Group officially announces the takeover of Bonton
The Roger Zannier Group has officially announced the takeover of children's brand Bonton, which will be placed in receivership in October 2023.
Founded in 2001 by Irène and Thomas Cohen, Bonton posted sales of 14.6 million euros in 2022, and is growing. In 2016, the children's brand was taken over by Marco Polo, the holding company of Xavier Marie (Eric Bompard, Le Petit Souk, Rautureau...). Like other players in the sector, it has suffered from the coronavirus pandemic and the decline in consumption.
Luxembourg-based Compagnie Financière Roger Zannier (Groupe Roger Zannier) has owned the premium children's fashion brand Tartine et Chocolat for over twenty years. The brand is run by Emilie Zannier, Roger Zannier's daughter.
Richemont acquires Italian jeweler Vhernier
Vhernier, a niche design jewelry brand founded in 1984, based in Milan and owned by the Traglio family, has been acquired at 100% by the Swiss group Richemont. By 2023, it will have sales of 30 million euros.
“Maison Vhernier brings a distinguished and distinctive design that beautifully combines modern, sleek and elegant shapes with unconventional materials, all magnified by exceptional craftsmanship. This unique aesthetic perfectly complements our existing collection of renowned jewelry houses,” comments Swiss group president Johann Rupert.
The company may be small, but it owns a highly specialized manufacture in the jewelry industrial district of Valenza in Piedmont, as well as a very high-end boutique network of sixteen stores worldwide in some of the most prestigious locations, such as Via Montenapoleone in Milan, Via del Babuino in Rome, Rue du Faubourg Saint-Honoré in Paris and Madison Avenue in New York.
LVMH Métiers d'Art acquires Spanish tannery Riba Guixà
LVMH Métiers d'Art has strengthened its position in the leather sector by taking control of Spanish company Riba Guixà. The division, which aggregates the luxury giant's suppliers specializing in exceptional raw materials, has increased its 80% stake in the tannery, a long-standing LVMH supplier specializing in lambskin tanning, in which it had held a 20% stake since the end of 2015. The amount of the transaction was not disclosed.
The lingerie business is on the move.
Liquidated on March 1 by the Paris Commercial Court, the Lacelier lingerie group owned six lingerie brands, including Variance. The latter, positioned in the mid-range segment and distributed in supermarkets, was taken over in mid-April by PMC Lingerie. It acquires only the brand name, and intends to redeploy it in the supermarket network, drawing on its own know-how.
Employing just under fifty people at its Wasquehal headquarters, PMC Lingerie is already present in supermarkets with three underwear labels: Envie de Lingerie (targeting women aged 30 to 45), Baiser Volé (large cups) and Mojito Lingerie (targeting younger customers with colorful, printed models).
Maison Lejaby, a specialist in premium lingerie, was placed in receivership on January 2. Its owner since 2019, Thierry Le Guénic, had announced in April that he was abandoning his plan to continue the business. On May 7, the brand was taken over under a compulsory liquidation procedure by Indonesian industrialist Salim Podiono and his Mirae group, brought to court by his French partner, Lyon-based entrepreneur Guy Chifflot's company GC Consult.
Lingerie retailer RougeGorge has become the majority shareholder in French menstrual panties brand Elia, founded in 2019 by Marion Goilav and Apolline Combrisson. Elia is developing a collection of organic cotton menstrual panties made in France, as well as menstrual swimwear and pregnancy and postpartum panties. The brand has a network of 260 sales outlets in France and Belgium.
RougeGorge was founded in 1992, is managed by Catherine Gallais and has achieved sales of around 120 million euros.
Style Capital to finalize acquisition of Autry
Specializing in premium fashion, Style Capital is poised to add another prestigious brand to its portfolio. The Italian fund led by Roberta Benaglia, which recently divested the Australian label Zimmermann for a valuation of 1.7 billion Australian dollars (1 billion euros), is on the brink of acquiring the majority stake in the Autry sneaker brand.
Autry was acquired in 2021 by the Made in Italy investment fund, overseen by the Quadrivio Group in collaboration with the communications agency Pambianco.
"We are currently in the final phases between signing and closing," confirmed Roberta Benaglia, noting that the company is valued at 300 million euros. "It's a brand with an intriguing price positioning, bridging the gap between classic sportswear brands and luxury, with products priced around 200-300 euros."
Established in Dallas in 1982, initially focusing on running, tennis, and basketball shoes, the brand experienced success before fading into obscurity. Refunded in 2019 by Italian entrepreneurs Marco Doro, Alberto Raengo, and Gino Zarelli, it has since experienced a resurgence with offerings for women, men, and children.
"It was a sleeping beauty with a rich heritage that has been revived with an authentic vision. It benefits from a discerning and robust selective distribution," continued the founder of Style Capital, who has previously achieved success with the development of another sneaker brand, Golden Goose, which has since been sold and is now under the ownership of Permira.
"The deal with Autry aligns perfectly with our capabilities. Their primary expansion has been in Europe and wholesale, with a notable absence in international markets. We can facilitate their expansion into the United States and Asia, as well as enhance their digital and retail presence," stated Benaglia, outlining Autry's economic profile.
"Revenue for the fiscal year ending in March 2024 totals 114 million euros, with EBITDA (earnings before interest, taxes, depreciation, and amortization) standing at 34 million, compared to 85 million and 26 million euros respectively in the previous fiscal year."
The Nidecker Group acquires the Etnies, éS, Emerica and ThirtyTwo boardsports brands.
Sole Technology, founded by Frenchman Pierre-André Senizergues, a former world skateboarding champion, in the USA in the 1980s, was one of the last remaining independent players in the boardsports industry. The group has announced the sale of its Etnies, éS, Emerica and ThirtyTwo brands to the Nidecker group, which owns the Nidecker, Yes, Jones, Rome and Bataleon brands. Founded 137 years ago, it is run by the last generation of the family, brothers Cédric, Xavier Nidecker and Henry Nidecker, who have turned around the group's business, internationalized it and initiated external growth.
Authentic Brands acquires Champion brand for over $1.2 billion.
Authentic Brands Group (ABG) has announced the acquisition of the Champion brand from HanesBrands. The agreement between the two American groups would value the company at least at $1.2 billion. “The transaction could reach $1.5 billion with possible cash bonuses of up to $300 million based on meeting performance thresholds,” explains HanesBrands.
JD Sports announces acquisition of Hibbett for over $1 billion
JD Sports has reached an agreement to acquire Hibbett for $87.50 per share in cash, corresponding to an equity value of $1.083 billion and an enterprise value of $1.109 billion.
It plans to finance the purchase and refinance Hibbett's existing debt by combining existing US cash resources of $300 million and a $1 billion extension of the group's existing banking facilities.
Hibbett owns 1,169 stores in 36 US states. Its main store chains are Hibbett and City Gear, and it sells footwear, apparel and accessories from major brands such as Nike, Adidas and Jordan.
In fiscal year 2023, Hibbett generated sales of $1.729 billion, EBITDA of $186 million and pre-tax profits of $131.6 million.
“From a strategic point of view, this acquisition strengthens our presence in North America and enables us to achieve our goal of consolidating our Complementary Concepts division,” said Régis Schultz, CEO of JD Sports.
On a pro forma basis, the combined revenues of JD and Hibbett in North America would amount to approximately ￡4.7 billion, or €5.4 billion, increasing North America's share of JD Group sales from 32% to 40%.
The deal is expected to be finalized in the second half of the year.
Thailand's Central acquires KaDeWe department store in Berlin
Thai retailer Central Group has acquired the iconic KaDeWe building in central Berlin from insolvent Austrian company Signa, in a further step towards acquiring the group. Central Group said it was optimistic about negotiations to acquire the entire KaDeWe Group, which includes Alsterhaus in Hamburg and Oberpollinger in Munich. The German business daily Handelsblatt reported that the purchase price for the building was around one billion euros.
The FTC has initiated legal proceedings to prevent Coach parent Tapestry from acquiring Capri Holdings.
The U.S. Federal Trade Commission has initiated legal proceedings to block the proposed acquisition of Capri Holdings by Coach and Kate Spade’s parent company, Tapestry. The deal, valued at $8.5 billion, would bring together two of the largest names in American luxury retail, creating a single entity comprising six fashion brands. Tapestry’s Coach, Kate Spade, and Stuart Weitzman, along with Capri’s Versace, Jimmy Choo, and Michael Kors.
In a news release, the FTC stated that the combined company would harm shoppers and employees. It said that Tapestry and Capri currently compete on everything from clothing to eyewear to shoes.
"Tapestry's goal is to become a serial acquirer, and the acquisition of Capri will further entrench its stronghold in the fashion industry," said Henry Liu, director of the FTC's Bureau of Competition, in the release. "This deal will deprive consumers of the competition for affordable handbags, while hourly workers will lose the benefits of higher wages and more favorable workplace conditions."
Tapestry argued that the federal agency's understanding of the marketplace and consumer shopping habits was flawed. In a statement, the company said it must win the business of consumers who increasingly shop across brands, channels, and price points.
The Federal Trade Commission argued that if the deal is allowed, it would eliminate direct head-to-head competition between Tapestry's and Capri's brands. Additionally, the acquisition would grant Tapestry a dominant share of the "accessible luxury" handbag market. Following the acquisition, the combined Tapestry and Capri would employ approximately 33,000 employees globally.
Tapestry's $1.2 billion buyout of Capri was approved by regulators in the EU and Japan.
Tapestry has pursued a decade-long M&A strategy through serial acquisitions with the goal of becoming a major American fashion conglomerate. It has consistently sought to acquire a variety of fashion brands, successfully pursuing many of its target acquisitions.
Tapestry reported sales of $1.48 billion for the third quarter of its 2024 fiscal year, ending March 30, a 2% decrease from the previous year. The company attributes this decline to a challenging consumer environment in North America, where sales fell by 3%. This performance was partially offset by international sales, which increased by 3% at constant exchange rates. Europe saw a 19% rise in sales, Japan a 2% increase, and other Asian countries a 15% surge. Greater China, however, experienced a 2% decline compared to the same period a year earlier.
Capri Holdings published its fourth quarter results. Weighed down by the slowdown in demand for luxury goods, its revenue fell 8.4% to $1.223 billion (€1.13 billion) due to lower retail sales.
Puig IPO Becomes Europe's Largest in 2024
Puig, founded in Barcelona in 1914 by entrepreneur Antonio Puig Castellò, is a Spanish group active in the luxury goods sector. The Catalan company controls the Paco Rabanne, Nina Ricci, Charlotte Tilbury, Carolina Herrera, Dries Van Noten and Jean Paul Gaultier labels. It has also signed licensing agreements with Prada, Christian Louboutin and Comme des Gar?ons.
Last year, Puig posted sales of 4.3 billion euros and a net profit of 465 million euros, up 16% year-on-year. All activities contributed to this growth: fragrances and fashion (+17% to 3115 million euros), make-up (+23% to 773 million euros) and dermo-cosmetics (+31% to 431 million euros).
The perfumes and fashion segment accounts for 72% of Group sales, with the Paco Rabanne brand topping the billion-euro mark.
Sales were 54% in EMEA, up 18%, 36% in the Americas, and 10% in Asia-Pacific, which generated the strongest growth (+26%). Internet sales accounted for 26% of sales.
The company has decided to go public because, according to its 62-year-old CEO, the aim is to impose market “discipline” on the company and avoid the possible “difficulties” that family-run companies face when the baton is passed from one generation to the next. Family-run businesses sometimes “lose their position in the market. They can start to die a slow death, and no one in the company is aware of it”.
The IPO took place on Friday May 3, 2024, at a price of 24.50 euros per share, valuing the Barcelona-based group at almost 14 billion euros. This will enable it to integrate directly into the Ibex 35.
The operation involved the issue of new shares for 1.25 billion euros, and the sale of shares held by Exea, the Puig family's holding company, for nearly 1.36 billion euros.
Following the transaction, the Puig family will remain the company's majority shareholder, with 71.7% of the shares and 92.5% of the voting rights
Anglo American studies De Beers IPO as part of demerger deal
Anglo American is studying the possibility of an IPO of its diamond company De Beers on the London Stock Exchange.
Anglo American, the London-listed mining company, owns 85% of De Beers, while the government of Botswana, where its largest mines are located, owns the balance. The group is the subject of a ￡34 billion takeover bid by the BHP group.
Shein aims for an IPO on the London Stock Exchange
Fast-fashion giant Shein is stepping up its preparations for a London listing, after attempting to go public in New York but running into regulatory hurdles and rejection from US lawmakers. Shein, which was founded in China and is now based in Singapore, was reportedly valued at $66 billion in a fundraising round last year. Shein made $45bn in gross merchandise value. Roadshows with investors have already begun.
Tendam continues to consolidate its accounts and prepares for a stock market flotation.
The Spanish fashion group, which owns the Springfield, Women'secret, Cortefiel and Pedro del Hierro brands, is owned by the CVC and PAI Partners funds. Tendam is Spain's second largest specialist fashion retailer by market share according to Kantar.
Tendam has repaid 110 million in advance. With this latest repayment, the entity managed to reduce its cost of debt by 40%. “This latest milestone underlines Tendam's sound financial health and ability to generate cash. The company is well positioned to continue to achieve its growth objectives and strategy,” says the group in a press release.
Its Chairman and CEO, Jaume Miquel, believes that the company could go public “this year or early next, as soon as market conditions are favorable”.
Golden Goose could be listed on the Milan Stock Exchange in the next few days
The luxury sneaker label Golden Goose SpA could be listed on the Milan Stock Exchange in the next few days, following positive feedback from potential investors who expect a valuation similar to that of Moncler, i.e. 11 times estimated earnings (i.e. around 3 billion euros, including net debt). As a reminder, Permira bought the company for 1.3 billion euros in 2020.
Only The Brave postpones planned IPO to 2026
The IPO of the Only The Brave group (OTB), which owns the Diesel, Jil Sander, Marni, Viktor & Rolph and Maison Margiela brands, should be postponed until 2026, its chairman Renzo Rosso said in early June.
Tod's delists and reports lower sales in Q1 2024
Tod's announces its successful delisting from the stock exchange. A friendly offer from the L Catterton fund, linked to the Arnault family and LVMH, in association with the brothers Diego and Andrea Della Valle, majority shareholders and founders of the luxury shoemaker, has enabled the stock to be delisted. The Della Valle family should now hold 54% of the capital, L Catterton 36%, and LVMH 10%.
“We decided to make this choice in order to focus on the potential development of each of our brands, making all the necessary investments in the timeframes we deem most appropriate. We have a great opportunity for growth, and we will try to seize it, operating with a long-term vision,” explains group CEO Diego Della Valle in a statement.
After record results in 2023, Tod's reported sales of 252.3 million euros, down 6.7% in Q1 following a 21% decline on the Chinese market. The Tod's brand, which accounts for half the group's revenues, saw its sales fall by 6.6% in the first quarter to 121.7 million euros. Roger Vivier sales fell by 23.2% to 52.7 million euros. Conversely, the Hogan and Fay brands grew by 8.2% and 12.7% respectively.
Lalique majority shareholder launches takeover bid with a view to delisting the company
At the end of May, Silvio Denz, majority shareholder in the Swiss Lalique group, announced the launch of a takeover bid with a view to delisting the company from the Swiss stock exchange. He is offering shareholders 40 Swiss francs per share in cash, a premium of 32.45% on the previous day's closing price, the group said in a press release.
An agreement has been reached with the other reference shareholders, Müller Handels AG Schweiz, Dharampal Satyapal Limited and Hansj?rg Wyss, to remain shareholders following this transaction.
Silvio Denz holds a 51.1% stake in the Group. This Swiss businessman made his fortune in perfumes, then bought French crystal maker Lalique in 2008, when it was in difficulty. He then renamed his company Lalique Group. The company is active not only in perfumes and crystal objects, but also in luxury hotels and whisky, following the acquisition of a stake in the Scottish distillery The Glenturret in 2019. In 2023, sales were €179.2 million, with net income of €2.4 million
Veesual, image generator for fashion, raises 5 million euros
Veesual, a specialist in the generation of fashion images using AI, in particular for virtual clothing fittings, has announced a €5 million round of funding from AVP (AXA Venture Partners) and Techstars. The French start-up, founded in 2020 by Maxime Patte and Damien Meurisse, is aiming to expand outside France and broaden its customer portfolio, which already includes brands and retailers such as La Redoute, Sergent Major and Claudie Pierlot.
The solution, which enables customers to visualize the look of a product according to different silhouettes and morphologies, aims to “help consumers better appropriate the collections of online brands, and better project themselves in the clothes they buy”, explains the company in a press release.
As part of this investment, Veesual has announced its entry into the Americas, with its first customer.
Technically, the start-up also plans to support its services in the future with a virtual fitting solution based on a customer's own photo. This will take personalization even further.
OneStock raises $72 million from US fund Summit Partners
Toulouse-based start-up OneStock, which has been supporting retail players in their omnichannel transformation since 2015 with its unified Order Management System (i.e. OMS), has raised $72 million from US fund Summit Partners.
Summit Partners aims to support the international development of France-based OneStock, particularly in the US market.
Belledonne, the French sneaker brand, raises its first round of financing
Belledonne, the French premium sneaker brand founded in 2018 by Antonin Chabanne and Mikael Leo, is raising its first round of financing worth €1 million with the aim of accelerating its export presence.
This operation, which is particularly aimed at accelerating Belledonne's presence in Asia, particularly in South Korea and Japan, where the brand is already present, has been carried out with Cuir Invest, the Filière Cuir investment fund, BpiFrance and four private investors: Michael Dayan, co-founder of the luxury apartment rental company Highstay and former owner of Sonia Rykiel; Sébastien Borget, founder of the metaverse platform The Sandbox; Olivier Hergault, founder of notrefamille.com; and Arnaud Régent, founder of La Compagnie des Cartes Carburant.
Models are handcrafted in a family-run factory near Porto, Portugal, with leather sourced in Italy. Previously self-funded, the brand claims to have sold 20,000 products since its launch.
Initially focused on online sales, the brand opened to wholesale at the beginning of 2022, which now accounts for 30% of sales, including 30% and 40% exports.
Frasers continues to increase its stake in Hugo Boss.
The Frasers clothing group has continued to increase its stake in the German high-end clothing group Hugo Boss, becoming one of its largest shareholders.
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Frasers reports that it now holds around 1.74 million shares, or 2.47% of Hugo Boss capital, and almost 13.92% of the capital via stock options in the German group. This represents an exposure to the German group of around 360 million euros.
Hugo Boss' two main shareholders were previously the Italian investment funds Zignago Holdings, with 9.03%, and PFC with 5.77% (in March). The group first became interested in Hugo Boss in 202.
Frasers was founded by British businessman Mike Ashley, whose operational management is headed by his son-in-law, Michael Murray.
Nessifashion, a new investment company.
In February 2024, in Rome, Marco Bizzarri, former president of Gucci, created a new investment company. He had become president of Gucci in 2015, and appointed Alessandro Michele as the brand's creative director. During his reign, the Florentine house more than doubled its sales to €9.6 billion in 2019. He left Gucci in September 2023.
Groupe GPE in receivership
The GPE Group, which owns the Du Pareil au Même, Sergent Major and Natalys brands, was placed in receivership on March 14. GPE declared itself in suspension of payments on March 6, and has been granted a six-month observation period until September 16, 2024. In mid-April, Natalys, which specializes in nursery products and textiles for babies and pregnant women, entered receivership, following in the footsteps of Du Pareil Au Même and Sergent Major, which had already been in receivership since June and December 2023, respectively. Sales for 2022 were 275 million euros.
Airesis, parent company of Le Coq Sportif, worsens losses
Airesis, the Swiss parent company of Le Coq Sportif, chosen to equip the French delegation for the Paris Olympics, announced a loss of 36 million Swiss francs in 2023
Esprit Europe placed in receivership
Clothing chain Esprit announced on Wednesday May 15 that it had filed for bankruptcy for its European operations, relying on restructuring to overcome difficulties linked in particular to rising costs and the after-effects of the Covid-19 pandemic.
The bankruptcy filing concerns the Esprit Europe subsidiary and six other German Group companies. Subsidiaries in Switzerland and Belgium, where Esprit has stores, filed for bankruptcy in March and April.
The group, which is listed on the Hong Kong stock exchange and headquartered in Germany, says it hopes the proceedings, which have been opened with the court in Düsseldorf (west), will enable it to “reorganize the finances and cash flow” of its subsidiaries, adding that “several potential investors have expressed interest in a strategic partnership”.
“Over the last few years, the subsidiaries have had to cope with extremely high costs due to inflation, interest rates and energy prices, the after-effects of the coronavirus and the consequences of international conflicts”, explains Esprit in a press release. This situation has been “aggravated by the burden of costs inherited from the past”, the group continues, citing high rents and stores of unsuitable size.
This is the second insolvency procedure in four years for Esprit, which had cut around a third of its workforce and closed 100 points of sale at the time of the pandemic.
The clothing chain was founded in 1968 in San Francisco by and Susie Tompkins - also behind The North Face brand -, who sold their first items crisscrossing California in a Volkswagen minibus. The founders are no longer at the helm.
The company is said to be “in discussion with several interested third parties and recently received oral confirmation from a possible investor”. This would be “an international private equity fund with a strong track record”, according to a company press release.
Superdry announces last chance plan
British clothing chain Superdry has announced a last-chance restructuring plan, including a capital increase and a forthcoming delisting. Without this plan, the group's various entities “would have to be placed in receivership or equivalent insolvency proceedings”, warns the company. The “capital increase” of up to ￡10 million (€11.7 million), the details of which have yet to be defined, will be underwritten by Julian Dunkerton, CEO and co-founder, who already owns over 26% of the company.
Olly Gan, in liquidation, is looking for buyers
Faced with financial difficulties, men's fashion retailer Olly Gan is back in receivership after a revival phase led by Stéphane Paya, who acquired the brand at the court in 2020. On April 30, 2024, the Aix-en-Provence Commercial Court declared the company in liquidation, with a three-month continuance of activity, with the aim of finding a buyer for the brand.
Pimkie enters safeguard procedure
The Pimkie brand, sold in February 2023 by the Mulliez family to a consortium comprising Lee Cooper France, Ibisler Tekstil and entrepreneur Salih Halassi, has been placed under safeguard proceedings by the Tourcoing Commercial Court. The chain was founded in 1971 and targets the 18-25 age group. Sales for 2023 fell by 8.3% to 198 million euros.
Zespà, in receivership, seeks a buyer for its premium sneakers
Placed in receivership last September by the Paris Commercial Court, French premium sneaker brand Zespà is looking for a buyer.
Founded in 2009 by Jonathan Agrifoglio and Jérémy Amar (who has since left the company) and joined in 2014 by Olivier Sudre, the label originally revisited the espadrille, before launching in 2014 into high-end sneakers made in artisanal Portuguese leather factories.
According to the takeover bid, Zespà, which employs six people, achieved sales of 1.8 million euros in 2023, compared with 2.8 million euros in 2022.
Kaporal out of receivership
Kapora, taken over by Thierry Bongiovanni, Nicolas Ciccione and Réginald Labbe, emerged from receivership on May 7.
The earnings season
Hermès recorded sales growth of 17% at constant exchange rates, with double-digit growth worldwide: Asia +14%, Japan +25%, Europe +15%, France +14% and America +12%. By sector, jewelry and lifestyle grew the most (+25%), followed by leather goods and saddlery (+20%). To boost productivity, Hermès has confirmed plans to open four new leather goods factories in France by 2027. The Riom plant, in the Puy-de-D?me region, is due to open in September. The Clothing and Accessories segment grew by 16%, and the Silks and Textiles segment by 8%. Lastly, Perfumes & Beauty and Watches posted +4% growth.
Prada Group's sales growth in the first quarter, driven by the continued success of Miu Miu, a focus on trading at full-price and a stronger performance in the APAC region. Group sales grew at constant currency 16 per cent year-on-year to €1.187 billion in the three months to 31 March 2024. Miu Miu, led by Miuccia Prada, has been spiking in popularity since 2022, gaining attention for setting trends like ballet flats, panties over tights, and the low-rise ultra-mini skirt. The brand's retail sales grew 89 per cent year-on-year in the first quarter. It now makes up over a quarter of the group's revenues, according to investment management firm Bernstein. The Prada brand's retail sales grew 7 per cent. In Asia-Pacific, Prada's largest market, sales grew by 16% at constant exchange rates. Growth was also strong in Japan (29%), Europe (14%) and the Middle East (14%).? The US market grew by 4%.
LVMH reported sales growth at constant exchange rates of 3% in the first quarter, to 20.7 billion euros, suffering in particular from a slowdown in Chinese consumption and weak performance in Europe and the United States. On a reported basis, sales were down 2%. Sales in the fashion and leather goods division fell by 2% to 10.5 billion euros. Sales of wines and spirits were down 16%. Selective Retailing, which includes Sephora and DFS, rose by 5% thanks to Sephora. The perfumes and cosmetics division was up 3%.
Ermenegildo Zegna Group first-quarter sales rose by 8% on a reported basis and by 10.7% at constant exchange rates to €463.2 million. This performance was driven by strong growth of 57.7% in the United States. On the other hand, organic sales in Europe fell by 6.5%, and by 13.1% in China. Zegna, the Group's flagship brand, posted sales growth of +4%, while Thom Browne fell by 29.6%. Tom Ford posted “a good performance, mainly in the United States”. The brand was integrated into the Group a year ago.
Brunello Cucinelli will raise its prices by 1-2% this year, following a 4% increase last year, its executive chairman said. In Q1 2024, sales were up 17.9% at constant exchange rates. Sales rose by 19.5% in the Americas, 13.9% in Europe and 16.0% in Asia.
On, the running shoe brand in which Roger Federer is a shareholder, reported sales up 21% on a reported basis and 29% at constant exchange rates, to 508.2 million Swiss francs in the first quarter of 2024. For the first time, it broke the half-billion Swiss francs barrier. Sales rose by 22% in the Americas, 69% in Asia-Pacific and 6% in EMEA. Direct sales now account for almost 38% of total sales. At the same time, inventory management has become more efficient, continues the press release. As a result, the gross profit margin rose to almost 60%, compared with 58% in the same quarter last year.
Urban Outfitters, the clothing retailer, reported sales growth of 4.6% at constant exchange rates for the first quarter, ahead of Wall Street estimates, with the Anthropologie and Free People brands driving the company's momentum following their high visibility on social networks in recent years. The performance of these brands offset the weakness of the eponymous Urban Outfitters brand, which declined by 12%.
Adidas, the German sports equipment manufacturer, returned to profit in the first quarter of 2024, thanks to strong demand for its classic sneakers, after the void left by the end of its partnership with rapper Ye. Adidas sales from January to March were boosted this year by the popularity of vintage sneakers from the Terrace collection, including the Samba, Gazelle and Campus models.
Hugo Boss posted a better-than-expected operating profit in the first quarter, thanks to productivity gains in procurement and a reduction in product and freight costs despite new investments. Quarterly sales rose by 5% to 1.01 billion euros
At Chanel, since Virginie Viard took over as Artistic Director, fashion sales have almost doubled and ready-to-wear has taken off, says Philippe Blondiaux, Chanel CFO. The year 2024 will see “more significant investment in real estate”, says Philippe Blondiaux. In particular, the company will open points of sale in New York, Paris and secondary cities. The total value of Chanel's real estate assets stands at more than 7 billion dollars (6.46 billion euros), according to Blondiaux
Columbia Sportswear reported first-quarter sales down 6% to $770 million, due to poor wholesale performance in North America. By brand, sales for Columbia, prAna and Sorel were down 6%, 4% and 24 respectively, while Mountain Hardware sales were up 17%.
Mytheresa, the German luxury e-commerce platform, has reported an 18% increase in quarterly sales to 234 million euros. Sales in the US rose by 42%. The CEO commented that “our strategy of focusing on the best customers is bearing fruit. Their number grew by 17% in the third quarter, and their average basket increased by 3.3%". The company did not comment on recent rumors of a possible delisting from the New York Stock Exchange, just over three years after its IPO. Mytheresa's success is partly due to its ability to create exclusive shopping experiences for its wealthy customers. The company has already organized a dance and dinner party in Beverly Hills, a two-day immersion with Jimmy Choo in Venice, and is soon organizing a two-day event in Capri to launch a new Dolce & Gabbana capsule. There, Domenico and Stefano will invite a hand-picked selection of customers to enjoy a tasty meal at the seafront Da Paolino restaurant. "We want to build a community for luxury enthusiasts. We create desirability through physical and digital experiences. The collaboration with Dolce & Gabbana is an excellent example, with the launch of the exclusive Capri capsule and the fabulous event we're going to organize on the island. We believe that our strategy, clearly focused on a specific customer segment, enables us to be truly the best for these customers, which makes us attractive to luxury brands. Our DNA is that of a physical boutique. We are clearly customer-centric, we work on synergies between brands, and we advocate excellence in customer service. That's what defines our culture,” asserts the German CEO. A counter-trend performance from Yoox Net-A-Porter, Matches, Farfetch, Frasers Group. We'll have more to say on the subject in our next newsletter.
Aeffe reported first-quarter sales of 80.2 million euros, down 13.4% at constant exchange rates, and posted a net loss of 5.6 million euros, compared with a loss of 0.3 million in the first quarter of 2023. The Group was impacted by the in-depth reorganization of its flagship Moschino brand, which fell by 11.9% at constant exchange rates, to 59.9 million euros. The Group's other brands also declined. Alberta Ferretti fell by 22.8% at constant exchange rates, Philosophy by 11.3% and the shoe brand Pollini by 14.4%. By region, sales fell by 17.6% in Italy (43.9% of total sales), by 12.7% in Europe excluding Italy, and by 26.6% in the United States. Sales were stable in Asia. “The debut of the brand's new creative direction, entrusted to Adrian Appiolaza, has been very positively received, which we hope to exploit satisfactorily with the Spring 2025 pre-collection, to be unveiled at an additional show during Milan Men's Fashion Week in June,” says Executive Chairman Massimo Ferretti.
Salvatore Ferragamo, the Italian luxury group, reported a 16.6% decline in first-quarter sales at constant exchange rates, with China proving difficult and amid a general slowdown in sales across all regions and channels. Sales totaled 227 million euros. In April, sales in the direct-to-consumer channel were slightly negative, but the trend was improving. However, the CEO, who said he wanted to prioritize top-line performance, does not see gross margin deteriorating.
The Global Trends
The end of “quiet luxury”?
Announcing the hiring of Alessandro Michele as creative director of Valentino, Rachid Mohamed Rachid, president of Valentino and Balmain, said the era of "quiet luxury" in the fashion industry is over and wealthy consumers will once again want bold designs. "We know that in recent years, quiet luxury has prevailed," Rachid Mohamed Rachid said in an interview with Bloomberg TV. "I think, like many others in the fashion world, that is about to end." He added that bold colors and patterns are "coming back with a vengeance, and we're preparing for that.
Alessandro Michele, Gucci's former star designer, is known for his flamboyant, bohemian-chic creations: a sign that Valentino may be moving away from the minimalist, monochrome styles of his predecessor Pierpaolo Piccioli, who was more associated with the "quiet luxury" trend that gained prominence after the swine flu pandemic.
Pierpaolo Piccioli's collections are known for their elegance and chromatic uniqueness. Two years ago, the brand presented a fall-winter collection in which all the pieces were bright pink. At his latest show in Paris, Piccioli presented over 60 looks with models wearing only black pieces, with variations between embroidered dresses and transparent lace dresses.
Development of the luxury goods market in 2024
Rachid Mohamed Rachid said that conditions for luxury goods remain challenging. "At the beginning of the year, luxury markets were expected to grow by 2% to 4%," he said. "My personal feeling is that it will be much less than that - probably stagnation. The reality is that Europe and the United States remain very stable for the time being, and China is still weak." He added, however, that there are signs that a Chinese recovery could take hold in the second half of the year.
According to Bruno Pavlovsky, resident of Chanel's Fashion and Métiers d'Art activities, the luxury goods market "has just finished one cycle and is about to start a new one, where growth will be there, but the market will be much more.
complex". He adds: "Since 2023, other brands are experiencing difficulties. Luxury goods are losing a certain clientele, the affluent middle class who come to a boutique occasionally to buy a bag. Today, these customers are more cautious. Maybe they'd rather go on vacation than buy a bag. And inflation doesn't help. Purchasing power continues to erode. Chanel is in a strong position now. But it's normal for things to slow down."
Consulting firm Bain & Company forecasts single-digit growth for the Chinese luxury goods market this year, rising to 12% by 2023. The outlook for the sector remains "complicated," warns Euromonitor's Fflur Roberts. "However, there are still more than 2.5 million people in China with a personal net worth of more than one million dollars," she notes.
Celine: Hedi Slimane on the way out?
Hedi Slimane's contract at LVMH-owned Celine is up and reportedly up for renewal but is the subject of acrimonious debate.
Hedi Slimane has radically changed Celine's style in recent years, moving away from the timeless minimalist spirit of his predecessor. The spirit of Parisian bobo chic that he has infused into his collections has succeeded in seducing buyers once again, while rejuvenating the clientele with pieces that are both easy and desirable, such as jeans. in addition to reconnecting the womenswear image with the house's historical identity as a purveyor of leather goods that embody Parisian bourgeois style.
In particular, the couturier overhauled the brand's visual identity from top to bottom, from logo to name, removing Celine's accent through social networks and advertising campaigns, most of which he shot himself. He also redesigned store layouts, while the number of store openings multiplied, as did the number of new employees. Above all, he broadened the offer with the launch of Celine's first men's line. Finally, a haute parfumerie collection and a haute maroquinerie line were launched to raise Celine's image to the highest level and expand its range.
The turnover of the label, headed by Séverine Merle, is estimated at between 2.5 and 3 billion euros, compared to 500 million euros in 2017. This means that it has overtaken Fendi to become LVMH's third largest fashion label, behind Louis Vuitton and Dior. However, the brand appears to be taking a pause in its growth, with an offer that doesn't renew much and leather goods reportedly not performing as well as expected. The brand has also decided not to participate in fashion shows and continues to present its collections through videos, which now seem less attractive than physical events.
Finally, Hedi Slimane was often seen as a hard-to-manage star designer who had difficulty communicating with other teams. This contributed in part to his departure from Saint Laurent.
Several rumors are circulating, including that LVMH has already found a successor for Céline. This would be Michael Rider, the current creative director of Polo Ralph Lauren. Rider left Céline in 2018 when Hedi Slimane took over.
LVMH Innovation Awards 2024
1,545 companies competed this year and the winners were announced at Vivatech. They are:
Fancy Tech: a platform for generating product presentation films using artificial intelligence.
Ircam Amplify: creates sound worlds for brands.
Aectual: creates architectural and furniture elements using a large format 3D printer and recycled materials.
Glanceable: uses artificial intelligence to analyze customer feedback and make recommendations to improve customer satisfaction.
Authena: uses artificial intelligence and the intelligence of IoT objects to authenticate products and resources.
BLNG: virtual studio powered by generative artificial intelligence for the jewelry industry.
LVMH renews its partnership with Alibaba
The luxury goods giant LVMH has announced that it has renewed its partnership with the Chinese group Alibaba Holding for five years to increase its presence in China through artificial intelligence, and particularly the e-commerce site Tmall. This collaboration will allow LVMH to "improve its commercial operations, better understand its customers and optimize its distribution and inventory management processes to meet the challenges of the Chinese market".
Fashion and luxury embrace AI
After hesitating a year ago, the luxury and fashion industries are now fully embracing artificial intelligence.
The use of artificial intelligence, which is already very present in the world of luxury and retail, will intensify and even "transform" these sectors, according to a study published by Deloitte on the "World Retail Congress" event. The 52% of brands and retailers surveyed for the report say they intend to use generative AI (ChapGPT, Dall-E...) in the next twelve months to create content (publications and reports), and 25% will do so to build brand campaigns and marketing.
According to Massimo Mazza, Roberto Cavalli's global marketing director, AI is currently being tested at the luxury house, which is working on a capsule collection project linked to its archives. "There has been a kind of astonished reaction on the part of the creative teams to the initial results," he notes, who has also been positively impressed by the application of AI technology in other areas, such as catalog production for e-commerce.
"Starting with a 2D image of a part, we can reproduce it on a 3D mannequin. This allows us to create virtual mannequins exclusively for our brand, customizing them according to the countries we're targeting and the morphologies we want to highlight. We can create content and all kinds of campaigns without having to worry about image rights," he points out. "Currently, AI allows us to save 40% compared to the traditional budget for this type of project. But beyond money, this technology offers us many more opportunities and enriches the shopping experience."
The Pinko label partnered with data specialist Data Life, which helped it develop a much more refined forecasting tool and improve its replenishment policy. "We have gone deeper into data analysis, taking into account new elements thanks to AI and adding more value to the products in stock," explains Alessandra Decaneto, head of data science and data analyst at the Italian accessible luxury ready-to-wear label.
The technology has been particularly effective for Pinko's weekly boutique sales reports, which not only manage all the data, but also interpret it and allow the brand's employees to interact directly with the AI. "This report highlights successful products and sales trends or, on the contrary, points out an item that didn't perform as expected in this or that store. We've also created a sales assistant. The system reacts very quickly and accurately and can generate a specific replenishment proposal for a given store on demand," says DataLifeCEO Iacopo Cricelli. "Previously, this work was done using the experience of the sales assistant," adds Alessandra Decaneto.
Founded in 2016, the Indigo.ai platform allows brands to create their own conversational agents and virtual assistants based on generative AI. The company has about a hundred customers. "Our project brings AI within reach. Our customers choose us because their marketing team can use this tool directly, customizing it according to the brand's needs, without having to be a data scientist. Not all SMEs have the resources or time to dedicate a team to developing this type of tool," notes Dario Cereo, who works in marketing and sales at Indigo.ai .
For LVMH, "the prospect [...] is to cover the entire value chain by using AI at every stage, from product development to production to sales," explained Franck Le Moal, Chief Technology Officer of the luxury group LVMH, on Tuesday.
Within the group, between 4,000 and 5,000 employees useMaIA, the in-house AI based on ChatGPT, every day to synthesize documents or translations. Customer advisors also use AI, and soon generative AI, to better target when a new collection arrives, for example, or to generate personalized texts.
According to the Group, AI will also be used in the areas of design and creativity. In the latter case, without replacing human creativity, AI will assist throughout the creative process, from inspiration to the final product, with the printing of a 3D prototype. In cosmetics, for example, AI can identify the right formulations in a month or two, whereas research used to take years.
AI will emphasize hyper-personalization in retail
Customer targeting is a key factor, especially in the luxury world. "Brands are increasingly using personalized recommendations and targeted advertising to analyze consumer behavior and preferences in real time," the paper states.
"For those who want to stay ahead of the curve, hyper-personalization will be key. Consumers expect brands to understand their individual preferences and provide personalized interactions at every level. These demanding shoppers are looking for seamless experiences that convey a sense of exclusivity and importance, both in the physical and digital realms," explains Ida Palombella of Deloitte Italy's Fashion & Luxury practice.
Last year, for example, the Prada Group teamed up with Adobe to improve the consumer experience both online and in-store. Moncler, for its part, launched a creative campaign with the help of AI, as did Maison Valentino for its Essentials collection.
"In the luxury sector, it's essential to maintain a consistent brand narrative, and ceding control of this to a third party can potentially dilute brand positioning," recalls Gillian Simpson of Deloitte UK. "By using generative AI tools to create content, whether images or text, luxury retailers can standardize their tone of voice across all communications, while making the necessary adjustments for different customer segments, geographies, missions...".
A few points of caution and suspicion are also raised. First, the problem of unstructured data, which requires a lot of storage and processing. The challenge is to isolate qualitative data efficiently. Second, there is the issue of privacy. To maintain consumer trust, "luxury retailers must base the design, deployment and communication of AI tools on four fundamental pillars: human connection, transparency, capability and reliability," the study lists.
The main functions of AI in retail will be sales assistants, analysis of market signals, and content creation. In the world of apparel, for example, AI-generated product recommendations and virtual try-ons have been widely accepted. But in the world of jewelry or watches, where a human touch is valuable, a virtual assistant is not ideal.
Luxury: the aspirational consumer, a customer not to be overlooked
Aspirational luxury consumers are defined as those who buy at least one luxury product - from apparel to beauty, leather goods, jewelry, watches and accessories - and spend an average of between €3,000 and €10,000 per year.
According to McKinsey, they represent 18% of the total fashion market, worth 273 billion euros, and 50% of the value of the luxury brand market.
Over the past few decades, the luxury goods industry has benefited greatly from the enthusiasm of aspirational consumers for branded products. After contributing significantly to the post-Cold War recovery, aspirational luxury consumers have stalled in the face of complicated economic conditions and heightened geopolitical tensions. And the luxury industry is tending to move away from them, positioning itself at the top end of the market for the most affluent consumers.
Chanel, for example, produces a medium-sized flap bag that sells for 10,000 euros in France after several years of continuous price increases.? In 2023, Chanel's prices rose by 9% and its volumes by 7%, according to CFO Philippe Blondiaux. Chanel cites inflation and cost of craftsmanship for price increases
Chanel CEO Leena Nair defends the luxury house's price hikes by citing the impact of inflation on the fine materials and artisans it uses. "We choose the highest quality raw materials, and our production is very rigorous, meticulous and handmade. So, we raise our prices in line with inflation".
However, this strategy may prove to be a losing one. Despite their occasional spending, this clientele remains important to the luxury goods industry, especially in markets such as China, India, Indonesia, certain Latin American countries and Africa, where the middle class is booming. Indeed, with prices too high for perceived quality, the big houses could lose ground to the emergence of new brands offering more affordable prices for better quality products. What's more, these products are often local, artisanal and sustainable. As a result, these brands carry a more authentic image of luxury to which aspirational consumers may naturally turn.
Aspirational luxury consumers have been grouped into five communities:
According to McKinsey, the "socialites" and "social status seekers" are the most promising profiles for Homes, as they are the most likely to become full-fledged luxury consumers. But other categories also have the potential to get closer to the houses, as long as we don't confront them with a single, uniform strategy. "More targeted approaches are needed, depending on the profile of the target, the channels they use, their country of origin and the product categories they are looking for," the study stresses.
Swiss watch exports down 16.1% in March and rebounds strongly in April
Swiss watch exports fell by 16.1% year-on-year in March, to 2 billion Swiss francs, down 41.5% on March 2023, to “a level below that of March 2020, when the industry came to a virtual standstill in the middle of the month due to the Covid pandemic”, said the watchmaking federation in a press release. This downturn is essentially due to a 41.5% drop in exports to China, 44.2% to Hong Kong, 14.8% to Singapore and 6.5% to the USA, 13.2% to the UK, 13.1% to Germany and 11.9% to France.
Swiss watch exports rose by 4.5% in April. Recovering demand for high-end and luxury watches in the USA (+11.6%) and Japan (+13.6%) offset continued weakness in China (-7.5%). Shipments rose by 4.5% in value to 2.1 billion Swiss francs in April compared to the previous year, said the Federation of the Swiss Watch Industry. Year-to-date, the decline was 2.6%.
Watches costing more than 3,000 Swiss francs returned to sustained growth in April, with a 7.8% increase in value.
Thierry Stern's vision of high-end watchmaking
hierry Stern, CEO of Patek Philippe, said he was not worried about the high-end segment, despite a slowdown in the luxury sector after three years of spectacular growth. For the entry and mid-range segments, "I think it must be tougher," especially as there is "more competition" in this niche. "But I'm not worried about Patek Philippe.
"Today, I don't have a critical market in mind, at least not at the top end," he assures. The United States, where Patek Philippe generates 38% of its sales, is "a collector's market" for the brand, "so I'm not worried". "Europe is also doing very well [...] Asia was a little more difficult for a while, [...] today it's back on track.
Swiss watchmaking had bounced back quickly after a sharp decline in 2020, with watch exports for the sector as a whole breaking records for three consecutive years and peaking at 26.7 billion francs in 2023, according to statistics from the Swiss Watch Industry Association. However, growth slowed to 3.1% in January, before slipping into negative territory in February, with exports down 3.8% year-on-year. March saw a further drop of 16.1%.
Not all brands were affected. According to an estimate by Bain & Company, only 2% of wealthy customers generate 40% of sales in the luxury goods sector, brands that rely on a very wealthy clientele that is little affected by the ups and downs of the economy.
For Mr. Stern, who represents the fourth generation at the helm of Patek Philippe, the recent slowdown may be a sign of "a return to reality" after three years during which sales in the watchmaking sector as a whole "exploded". But "we can't say it's a crisis", it's just "a bit calmer", he judges.
For 2024, he expects production to remain at last year's level of 72,000 pieces, a "record" for the brand.
According to an estimate by Morgan Stanley and the consulting firm LuxeConsult, Patek Philippe's sales in 2023 will be in the region of 2.05 billion Swiss francs, an increase of approximately 14% over the previous year.
Luxury: brands increasingly eager for large spaces in Europe's key arteries
Physical stores are more popular than ever. This is reflected in the luxury industry's retail strategies. To attract and retain customers, as the post-Covid rebound fades and demand becomes “normalized”, brands are banking on ever-larger physical stores, where they can showcase a broader offer and encourage more experiential shopping, especially in the most prestigious locations. These are the findings of Cushman & Wakefield's first report on luxury retail in Europe.
OTB equips products from Jil Sander, Marni and Maison Margiela with a digital certificate
From autumn winter 2024/2025, OTB, Renzo Rosso's Italian fashion group, plans to equip 1.5 million products a year from its Jil Sander, Marni and Maison Margiela brands with a digital authentication certificate linked to blockchain technology.
The group plans to implant an NFC (Near Field Communication) chip in each product and register it on the platform of the Aura Blockchain Consortium, an entity launched in 2021 by LVMH, Prada, Cartier (Richemont) and OTB. This technology enables access via a smartphone to the digital certificate of authenticity containing information about the product and its origin.
Pandora sales soar thanks to synthetic diamonds.
In a sluggish jewelry market, the Pandora brand saw its sales rise by 18% in the first quarter, driven by an 87% increase in sales of synthetic diamonds. Pandora is the world's largest manufacturer of synthetic diamonds.
The company anticipates sales of over DKK 1 billion (€134 million) in the synthetic diamond segment by 2026.
The Second Hand
Circular Fashion Federation study
"Diversification of activities, automation of operations, collaboration with specialists and fair pricing incentives are among the ways to be explored to generate value and/or reduce associated costs". The association said
Ecoscore: The Comité Stratégique de Filière Mode et Luxe calls for the inclusion of physical sustainability
The Comité Stratégique de Filière Mode et Luxe calls for the inclusion of physical sustainability in the Ecoscore criteria.
Physical sustainability "is an important part of sustainability and could be based on the exploitable results of the Durhabi study carried out by the IFTH (French Textile Institute) with Ademe (Agence de la Transition Ecologique,)," argues Nicolas Houzé, president of the committee.
Vinted to be profitable for the first time in 2023
Vinted, the Lithuanian second-hand fashion platform, made a net profit of 17.8 million euros last year, after a loss of 20.4 million euros the year before. Revenue is expected to grow by 61% to 596.3 million euros in 2023. Vinted attributes this growth to increased penetration in existing markets as well as the launch in Denmark, Finland and Romania. It also cites the gradual acceleration in the luxury goods market through the product verification system, which was deployed in nine countries and launched following the acquisition of specialist Rebelle in 2022. France remains the largest market with 27 million registered members. The French market is followed by the United Kingdom, Germany and Italy. The company employs around 2,000 people, mainly in Lithuania. The year 2023 was also marked by the acceleration of Vinted Go, the Group's logistics subsidiary, which now has 1,500 automatic lockers and collection points in France, its test market. In December alone, some 400,000 parcels were delivered. With the recent acquisition of Dutch logistics specialist Homerr, Vinted Go intends to focus its investments this year on France, Belgium and the Netherlands.
Second-hand specialist Paradigme raises 1.2 million euros
Paradigme, a French start-up specializing in second-hand fashion products founded by Fabien and Vincent Huché-Deniset, has announced a first round of financing of 1.2 million euros from, among others, e-tailer Showroomprivé, the Hartwood Fund and Vanessa Prou.
The company develops its own platform and offers a BtoB solution for brands. It offers consumers the opportunity to buy back their clothes in exchange for gift cards. Items are inspected, refurbished if necessary, and then resold on the site, which has more than 20,000 customers.
The goal is to "build a team to convince more brands and major fashion players to develop a secondhand offer in partnership, improve its technological tools, grow its community of secondhand buyers and sellers, and structure its operations with the aim of multiplying the volumes processed tenfold by the end of the year".
Beebs, the children's second-hand specialist, placed under receivership
Beebs, the French platform for buying and selling second-hand items for children, was placed in receivership by the Commercial Court of Créteil (Val-de-Marne) on March 13.
Founded in November 2020 by Arsène Huot and Morgan Hilmi, the company claims to be the leader in France and Belgium for buying and reselling children's products (clothing, childcare, toys, video games, books, baby consumables, etc.). Since its launch, it has raised 8 million euros.
Beebs claims to have more than 2 million users and to have sold 3.5 million items, including 690,000 items in 2023. Kiabi
The platform has been acquired by Kiabi.
Perus: Responsible fashion brand liquidated
Perus, the French sneaker brand co-founded by Nicolas Langlois d'Estaintot in 2014, was liquidated by the Paris Commercial Court on April 30. The company, which went into receivership on February 29, was hit by covid, rising costs and falling consumption.
The brand launched with participatory financing with sneakers made in Peru and Bolivia, the sales of which financed a day of school for underprivileged Peruvian children. It reportedly sold 90,000 pairs and funded 450 years of schooling. By 2020, the company had moved two-thirds of its production to Europe.
Gémo launches a clothing rental service for babies
In 2022, in partnership with the start-up Lizee, Gémo experimented with clothing rental for pregnant and nursing women. Today, the offer has been extended to include items for babies. Two offers are available with no time commitment: rent 4 products per month for 20 euros or 8 products per month for 40 euros. It is possible to mix and match products (maternity wear, nursing wear and baby wear). The website lists 350 products. Dry cleaning and repair services are included.
Founded in 1991, the chain is owned by the Eram Group and has a turnover of 890 million euros in 2023, compared to 906 million euros in 2022. Its network includes around 430 stores.
Maje launches online repair service with Save your wardrobe
Maje launches an online garment repair service with London-based start-up Save your wardrobe, a digital platform specializing in garment care and repair.
Save your wardrobe was founded in 2020 by Hasna Kourda. It is a repair platform that takes care of orders and their follow-up. It also acts as an intermediary between the brand and the repairer.
For Maje, repairs are carried out at the Rabiboche family workshop in Margny-lès-Compiègne, Hauts-de-France.
Promod opens a boutique-laboratory combining second-hand, unsold items, sewing kits and workshops.
Promod opens a boutique-laboratory in Northern France for second-hand clothes, slightly defective items, fabrics and sewing kits. The second-hand offer is not exclusively Promod, but the brands Shein and Primark are banned.
Previously, Promod only offered second-hand products online through its partnership with Rediv, which ended in January. As a result, the company has brought the service in-house.
Promod, which has been owned by the Pollet family since it was founded in 1975, had a turnover of 374 million euros in 2023 and a network of 389 stores.
DHL Supply Chain to manage logistics process for Reflaunt
DHL Supply Chain has been selected to manage the entire logistics process for Reflaunt, a platform that helps brands and retailers develop their second-hand offerings.
In addition to warehousing, shipping and delivery, DHL will be responsible for the collection of resale products from consumers, inspecting, evaluating and photographing the products and computerizing them in the Reflaunt system.
Reflaunt, whose clients include Balenciaga, COS, Axel Arigato and Monnier, has also been integrated into the Yoox Net-a-Porter, Vestiaire Collective, Ebay and The Vintage Bar portals.
Reflaunt claims to support some 50,000 pre-owned luxury products and an audience of 250 million customers through the 30 or so resale platforms that use its tools.
Founded in Hong Kong by Stéphanie Crespin, Philippe Benedetti and Felix Winckler, Reflaunt raised $11 million in August 2022 to support its development, having already raised $2.7 million the previous year.
Shein launches clothing resale platform in France
Shein is to launch a platform for reselling used clothing in France, "the first country in Europe" to offer the service, according to group executive chairman Donald Tang. "The transaction is very simple as your purchase history is recorded and it only takes one click to resell a product," he explained. Such a platform already exists in the United States, where it has more than 4 million users.
The Eyewear market
Kering Eyewear revenue increased by 8 percent year-on-year in Q1, reaching €463 million.
Quarter after quarter, the eyewear unit increasingly looks like the one bright spot for Kering. In Q1 2024 reported revenue of optical frames and sunglasses rose by 7 percent year-on-year to €463 million. The company will invest in branding, communication and new collections at Maui Jim
JEH acquires factory
Fast-growing eyewear group Japan Eyewear Holdings (JEH) has acquired Taihou, an OEM eyewear supplier based in Sabae City, Fukui prefecture, Japan. The company said that the acquisition was aimed at boosting its production capacity.
Ivision Tech, new acquisition
iVision Tech, the Italian eyewear group announced it was entering the lens sector with the acquisition of a 60 percent stake in Bulgarian lens producer IVILENS OOD.
Nexeye acquired by KKR
The global investment firm KKR will acquire Nexeye, which runs the Hans Anders, Eyes + More and Direkt Optik retail chains, from 3i, another financial investor that owned the company since 2017. In its financial results for FY2024, ended March 31, 2024, 3i has reported that the deal would generate proceeds of approximately €452 million and, combined with distributions already received, would result in a 2.0 times money multiple. The final valuation is in line with previous valuations by 3i but lower than anticipated by some industry insiders. The last available results for Nexeye showed €355 million in revenue with a 17.9 percent Ebitda margin for the year ended Jan. 2023.
Headquartered in Gorinchem, the Netherlands, nexeye is a leading European provider of value-for-money eye care operating under the Hans Anders, eyes + more, and Direkt Optiklabels.
The group, their labels, and their more than 3,500 employees provide affordable, high-quality eye and hearing care to customers across more than 700 stores in the Netherlands, Belgium, Germany, Austria, and Sweden.
Edel-Optics aquired by Optiker Bode and ROTTLER. Optiker Bode and ROTTLER, two family-owned and historical optical retail chains respectively based in Hamburg and North Rhine-Westphalia, are joining forces to take over Edel-Optics, an online optical retail pioneer in both Germany and Europe. Founded in 2009, the company had filed for insolvency proceedings in February.
Safilo and Marc Jacobs renew eyewear partnership
Safilo Group has announced the early renewal of its multi-year eyewear license agreement with Marc Jacobs. The renewed partnership includes the design, manufacturing and global distribution of prescription frames and sunglasses but also outdoor eyewear, goggles and helmets under the American fashion brand until December 2031.
Safilo signs perpetual license with David Beckham brand
Safilo strengthens its partnership with David Beckham's label, owned by the American Authentic Brands Group, which took a majority stake in the brand in 2022. The Italian eyewear manufacturer, controlled by Dutch fund Hal, signed a perpetual license with the label.
Safilo launched the first “Eyewear by David Beckham” collection in 2020 via a ten-year licensing agreement. Under the new agreement, the group “will continue to manage the entire value chain, from the design phase to the creative process led by David Beckham, to production and worldwide distribution”, concerning the sunglasses and optical collections.
The group, which has six brands of its own and more than twenty in its licensing portfolio, including Hugo Boss, Dsquared2, Etro, Isabel Marant and Tommy Hilfiger, has renewed several licensing contracts since the start of the year, including eyewear collections by Moschino, Levi's, Missoni and Marc Jacobs.
Marcolin signs eyewear license with K-Way
K-Way, the French-born brand known for its nylon windbreakers, owned by Italian group BasicNet, and the eyewear manufacturer, controlled by French investment fund Pai Partners, announce “an exclusive licensing agreement for the design, production and worldwide distribution of K-Way-branded sunglasses, eyeglass frames, ski goggles and children's eyewear”. The six-year partnership runs from January 1, 2025, to December 31, 2030. The first collection will be unveiled at the Italian Mido eyewear show in February 2025. The K-Way eyewear collections will be distributed worldwide through a network of selected boutiques.
De Rigo and Zadig&Voltaire renew eyewear licensing agreement
Partners since 2015, Italian eyewear specialist De Rigo and French brand Zadig&Voltaire have announced the renewal of their global licensing agreement for the design, production and distribution of sunglasses and eyewear.
Charmant is closing its UK
Japanese eyewear manufacturer Charmant has announced to its UK customers the closure of its branch in the country by the end of June this year. The company said that it would stop taking orders after April 19.
Financial Market
Rate cuts in Europe, but without conviction
For once, the ECB has taken the initiative in cutting rates, by 25 bps before the Fed (see graph below).
The central scenario is a quarterly rate cut in Europe. Thus, the next rate cut should take place in September and December. That's three rate cuts in 2024, followed by 3 more in 2025. This should bring rates back to the 2.50% level.
For its part, the FED is expected to cut rates twice in 2024. It should begin cutting rates at the end of the summer.
Startup secondary markets
The secondary markets - where stakeholders can sell stakes in private companies to investors ahead of an IPO, acquisition or other exit - appear to be picking up steam as valuations fall, a slew of new dedicated secondary funds launch, and the ranks of highly valued unicorn startups swell. These platforms include Augment, Forge, EquityZen and Hiive.
Unicorns are the most actively traded stocks. On Augment, for example, about 80% of the activity is in just 30 companies. With a lack of IPOs, especially in recent years, interest in trading shares on the private secondary market has grown. Interest in a particular company tends to increase in advance of an anticipated IPO, as employees may sell at a discount to get some guaranteed liquidity. After an IPO, some employees want to sell to avoid the 6-month post-IPO lockup.
Sellers are usually paper millionaires living in studio apartments in San Francisco who want liquidity. Buyers are typically brokers acting on behalf of clients, often high net worth individuals who want to own certain highly valued companies. Prior to the ability to access shares through the secondary markets, these clients could typically access a portfolio of private companies largely by investing in funds.
Secondary market transactions typically require the approval of the company - which often has a right of first refusal to purchase the stock - and can be subject to transfer fees.
Augment is licensed as a broker-dealer and alternative trading system with FINRA and the U.S. Securities and Exchange Commission. It presents anonymous buyers and sellers with a single view to enable negotiation. Buyers and sellers are verified on the platform. Once an agreement is reached, a share transfer notice is sent to the company, which typically has a 30-day right of first refusal.
Trades on the Augment platform typically start at $100,000 for buyers.
As of early April, the top 10 companies trading on Augment are: Rubrik, Databricks, SpaceX, Chainalysis, Anthropic, Epic Games, Kraken, Stripe, Chime, Anduril Industries.
The post-pandemic inflation surge is over
The single most important inflation indicator is the PCE Deflator, which is the Federal Reserve’s preferred measure of broad consumer prices. It is currently at 2.5%. This is down from the post-pandemic peak of over 7% in June of 2022, and almost exactly the median inflation rate since 1980.
Legal
Europe removes icons from Zalando's 'responsible' products.
The European Commission has negotiated with Zalando to remove certain flags and icons highlighting the sustainability of products that were considered "misleading in terms of sustainability."
The platform also committed to removing the term "sustainability" and other qualifiers related to environmental responsibility and replacing them with more precise information. "For example, a percentage of the number of recycled materials used," the commission said.
In Mexico, a pricing error on Instagram is costing Cartier dearly.
A Mexican bought a pair of Cartier earrings on Instagram for $28 instead of $28,000 due to a pricing error by the brand.
The jeweler initially refused to acknowledge the purchase and deliver them, offering a bottle of champagne and a passport case. However, the customer appealed to the federal consumer protection agency, which ruled in favor of the buyer and ordered the brand to deliver the earrings. The customer acknowledged receipt of the earrings.
In Germany, dispute between Adidas and Nike over the use of stripes.
Nike can put three stripes on some of its trouser models. The Düsseldorf Regional Court had banned the American firm from using two or three stripes on five of its pants models after Adidas filed a trademark infringement suit in 2022.
Nike can now use the stripes on four of the models at the heart of the complaint, while the ban on one remaining model remains in place, the court said, partially overturning the previous decision.
Nike, for its part, claims that the scope of Adidas' protection is too narrow, arguing that the decorative stripes do not necessarily relate to the brand.
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Executive Director Marketing @ AL-Amin Export Ltd | Fine Arts
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Executive Director Marketing @ AL-Amin Export Ltd | Fine Arts
5 个月#Sweater #Jumper #Cardigan Manufacturer #From Bangladesh #More affordable Price #Made by 100% Cotton ,Combed Cotton & Organic Cotton #Blended Wool Yarn?????????
Interested in research, monitoring, and investigation of everything related to the Earth, the Earth’s atmosphere, and the links with the universe, the hourglass
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Marketing manager at Fabrizio and Gabreilla_ Consultant at Dovber Marchette and sons
5 个月great perspective on a amazing brand