Luxury Headlines – 19/09/2023
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Sarah Burton Leaves Alexander McQueen
Creative director Sarah Burton of the Kering-owned fashion house Alexander McQueen has announced her departure from the brand following the Spring/Summer 2024 show in Paris. She was appointed Head of Design in 2000, working with founder, Lee McQueen, until she became creative director after his death in 2010. Burton helped to greatly boost sales during her tenure. In 2022, sales were €830 million, up from €758 million in 2021 according to Morgan Stanley. By comparison, sales were at €220 million in 2014. A strategy involving global retail expansion proved to be very successful, as well as the introduction of a more balanced product offering, with a focus on accessories.
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eBay Launches Luxury Consignment Service
eBay is strengthening its participation in the luxury resale market by offering its shoppers a consignment service for luxury goods, connecting users with experienced sellers who will list and distribute the products on their behalf, as part of a simple and streamlined process. The program will kick off with luxury handbags with a planned expansion into jewelry and watches by 2024. This will build on the momentum of services including “Authenticity Guarantee” and “Certified by Brand” giving customers more trusted ways to buy and sell on the marketplace. Louis Vuitton, Chanel, Hermès, Prada and Saint Laurent are among the 34 luxury brands eligible for this program.
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Ermenegildo Zegna Reports Strong Growth for First Half
In keeping with its guidance from July, Zegna Group, which also owns Tom Ford and Thom Browne, and went public in December 2021, announced that it recorded a 45% jump in operating profit to €119.9 million, as well as an almost doubled net profit margin at 5.8% to profit of €52.1 million for the first six months of 2023, compared to the same period in 2022. These excellent results are due to exceptional performances in the USA and strong growth in EMEA, despite the somewhat slower recovery in China. Zegna attributes much of its success to its focus on retail operations and higher store productivity, its price repositioning and more effective cost management.
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Puig Plans for IPO
Puig recently hired investment banks Goldman Sachs and JP Morgan as advisors for a possible Initial Public Offering (IPO). Puig is the owner of venerable high-end niche brands such as Carolina Herrera, Paco Rabanne, Jean Paul Gaultier, Dries van Noten, Nina Ricci, Penhaligon’s, L’Artisan Parfumeur and Charlotte Tilbury to name a few. The family-owned company could be worth as much as €8 billion. The IPO market is beginning to show increased activity following a prolonged drought caused by tightening monetary policies. Puig experienced a 40% growth in sales last year to €3.6 billion thanks to strong demand following the pandemic and is expecting to reach the €4.5 billion mark by 2025.
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Mytheresa Benefits From Strong US Sales and Top Spending Customers
Due to resilience and great momentum in the US market, as well as growth in the pool of HNWI and UHNWI (high net-worth and ultra-high net worth individuals), Mytheresa’s revenue grew by 11.4% for the full year to €768.6 million, with adjusted EBITDA up 40.3%. The platform’s North America business jumped by 40.8% as the company invested in marketing and special events for clients. Despite the impact of a broader slowdown in demand for luxury goods, which is affecting some competitors significantly, Mytheresa has been able to strategically focus on luxury’s wealthiest customers and thus mitigate the slowdown, especially in the US. This high net-worth customer base now drives 40% of total revenues as more premium and aspirational shoppers pull back on their spending due to inflation.
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