Luxury Headlines – 15/04/2024
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Chanel Competes With LVMH for NYC Fifth Avenue Tower
Luxury retailers continue to compete for iconic real estate purchases to secure landmark locations worldwide. Chanel is in talks in New York City to buy a building on 745 Fifth Avenue, competing against LVMH. Other luxury retailers that recently purchased property on Fifth Avenue include Gucci and Prada, while Rolex is building its new headquarters on Fifth Avenue. LVMH refurbished and reopened the iconic Tiffany store in its vicinity not long ago. This trend is a global phenomenon, with Kering buying property in Milan recently after having snapped up buildings in Tokyo and Paris.
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Hermès Takes on Rolex and Chanel With Sports Watch
Hermès is launching a new line of women’s sports watches called Cut, following the success of the H08 sports watch. The watch is priced from $6,725 to $21,900 and is aimed at a target customer who typically buys Rolex or Omega. Hermès hopes the watch will continue the recent surge in watch sales experienced by Hermès. According to published results, Hermès' watchmaking division, Hermès Horloger, has tripled its revenues since 2020. The key to this successful strategy has been in-house production, new product launches, exceptional creativity, a strong and profitable distribution network, and the global attractiveness of the brand. Hermès ranks 16th among Swiss watchmakers by turnover, ahead of Tudor, Panerai, Van Cleef & Arpels, and only narrowly behind TAG Heuer.
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Equinox Gyms Partners With Healthcare Technology Company for Lab Testing
Equinox, a luxury fitness club, has partnered with Function Health, a health company, to offer its members a new lab testing package. The package will include more than 100 tests to help members track their health and improve overall performance. This taps into a recent trend where fitness companies are merging with healthcare and technology companies to provide members with a more holistic approach to wellness. Other examples of this trend include Peloton entering the corporate wellness space and the recent opening of the Ralph Lauren Center for Cancer Prevention. These collaborations show that the fitness industry is moving towards a more data-driven and personalized approach to wellness.
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Gucci Hires Louis Vuitton Veteran
Gucci is hiring a new deputy CEO to improve its sales and to rebuild investor confidence. The company recently brought on Stefano Cantino, a former executive from Louis Vuitton and a veteran communications expert, who also rose through the ranks at Prada before his Louis Vuitton appointment. At Louis Vuitton, he oversaw communications, including fashion week spectacles like the Pharell Williams debut on Paris’ Pont de Neuf and museum-style exhibitions. Cantino is expected to help Gucci create a more high-end image.
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Rent the Runway Sees Record Jump
Rent the Runway's stock price surged 226% on Thursday in intraday trading after reporting upbeat the fourth quarter earnings and beating analyst expectations. The company has been working on a turnaround after struggling during the Covid-19 pandemic due to a mismatch in inventory. Rent the Runway offers clothing rentals and adds everyday workwear to appeal to a broader customer base. Analysts believe the company's business model is critical as the return-to-work trend is expected to benefit the company. The company implemented a 1-for-20 reverse stock split to increase the per-share price and avoid being delisted from the Nasdaq Capital Market.
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