Latest news with #WWD
Yahoo
13 hours ago
- Business
- Yahoo
E.l.f. Beauty to Acquire Hailey Bieber's Rhode in $1 Billion Deal
Beauty has a new billion-dollar baby: Hailey Bieber. E.l.f. Beauty has reached an agreement to acquire Bieber's beauty brand Rhode in a deal valuing it at $1 billion, the companies jointly revealed Wednesday. More from WWD The TikTok Shop Opportunity, Defined by Joey Shamah and Stormi Steele Foot Locker Stock Soars More Than 80% as Dick's Sporting Goods Confirms $2.4 Billion Buyout Church & Dwight Acquires Touchland for Up to $880 Million The news comes just a month after WWD reported that Rhode had hired JP Morgan and Moelis to explore deal options. 'They support founders, they want to help push the founders' vision and get behind them,' Bieber said of the deal with E.l.f. in an interview with WWD. 'That's where we are with Rhode, and I'm ready to get to the next place.' That will include international expansion — or, as Bieber put it, 'more places, more faces.' It's not E.l.f.'s first rodeo with founder-led brands: The company acquired Naturium in 2023 and incubated in-house Alicia Keys' Keys Soulcare, a fact that was attractive to Bieber. 'This is my baby, and to find a home for it is really not an easy process — it's very scary,' Bieber said. 'When I met the E.l.f. team, we had a lot of similarities when it came to the importance of community and team building.' The deal marks E.l.f.'s biggest to date, and consists of $800 million in cash and stock payable at closing, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year timeframe. To fund the deal, E.l.f. secured $600 million in debt financing. It also comes at a time when E.l.f., which was one of the top-performing companies on the New York Stock Exchange in the first half of last year and surpassed the significant $1 billion milestone in net sales, has faced headwinds recently. These are namely in the form of tariffs, with 75 percent of its products manufactured in China. As a result, the company's share price is down by around 25 percent in the year to date. In an interview, E.l.f. chairman and chief executive officer Tarang Amin revealed that he had been in discussions with Rhode since October. 'E.l.f. Beauty is on fire, and it was a desire to fuel that fire with the acquisition of Rhode,' he said. 'In less than three years, going from zero to $212 million of net sales, direct-to-consumer only, with just 10 products — I would never believe that if somebody told me,' he said. 'The momentum and everything that Hailey has fits our ethos as a company, of wanting to invite her into our family and her entire team and be able to transform the beauty industry.' Building on Bieber's popular glazed doughnut skin content on Instagram, Rhode launched in 2022 with a tightly edited stock keeping unit count on its website. By the end of 2024, it was the top skin care brand by earned media value, having grown 367 percent from the year prior. Since its launch, Rhode has expanded beyond the initial lip balms, serum and moisturizer to entail color cosmetics, phone cases and a recently confirmed partnership with Sephora in North America, which will kick off later in 2025. The brand's net sales reached $212 million in the 12 months ended March 31. The acquisition gives E.l.f. more than just a fast-growing buzzy brand: It will also mark E.l.f.'s entrée into Sephora U.S. 'Going to every single U.S. and Canadian store this fall, followed by the U.K. by the end of the year, shows the confidence [Sephora] has,' Amin said of the launch. 'They are great purveyors, and every beauty brand wants to go to Sephora.' When Rhode initially hired bankers, sources were skeptical the $1 billion valuation could be met, citing broader factors in the M&A landscape as well as the brand's hefty marketing spend. Indeed, a raft of other brands — including Selena Gomez's Rare Beauty, Makeup by Mario, Kosas, Merit, Jane Iredale and more — have gone to market and have yet to find buyers. But Rhode bucked the trend, with one source noting it's the fastest majority deal of $1 billion or more in beauty. As part of the deal, Bieber will serve as Rhode's chief creative officer and head of innovation, overseeing creative, product innovation and marketing. She will also act as a strategic adviser to the combined companies. 'I want to continue to push innovation — innovative products, innovative marketing, and I know they'll be able to continue helping us,' Bieber said. Cofounders Michael D. Ratner and Lauren Ratner and CEO Nick Vlahos will continue to lead the brand out of its Los Angeles office. Amin also noted that every brand in the E.l.f. Beauty stable saw growth last year, with Naturium and Keys Soulcare sales reaching all-time highs. As for whether E.l.f. plans any more M&A, Amin stressed that his primary focus is the organic growth of its existing brand portfolio. 'A billion-dollar deal is the biggest we've ever done in our history, which talks about our excitement and our confidence, but also gives a big responsibility to make sure we're living up to everything Hailey wants and so I'd say that's going to be the focus for us right now. How much can we grow our brand portfolio? How much can we just continue to disrupt the beauty industry?' he said. In August 2023, E.l.f. acquired masstige skin care brand Naturium from The Center for $333 million as a broader strategy to give the company cachet in skin. With that acquisition, it doubled its penetration within skin care to 20 percent and wasted no time in expanding Naturium's footprint into Ulta Beauty in the U.S. and Shopper's Drug Mart in Canada. In an interview with WWD last summer, Amin said: 'One of the things we get with acquisition is greater scale right away. What we get with something like a Naturium is they went from zero to over $90 million in sales in three years. We liked the fact that it already had a good sales basis and a fully developed team that we could continue to build. We've been investing in the brand, we've been investing in the team, and we continue to see incredible results from it.' The acquisition news comes as E.l.f.'s net sales increased 4 percent to $332.6 million in its fourth quarter ended March 31. This beat Wall Street's expectations of $327 million. Adjusted net income was $45.2 million. Adjusted diluted earnings per share were 78 cents, above estimates of 72 cents. Due to the wide range of potential outcomes related to tariffs, the company is not providing a fiscal 2026 financial outlook at this time. Amin noted that around 75 percent of E.l.f.'s goods are manufactured in China, while Rhode is primarily manufactured in Italy and South Korea. 'Just like every company, tariffs are impacting us, but we have a mitigation strategy,' he said. 'Last week, we announced to our community that we're going to take all E.l.f. prices up $1 and what we told them is it's a fraction of what the tariffs actually cost, but we really care about preserving great consumer value. We had 99 percent positive sentiment.' As for when the company is likely to release a full-year forecast, he said: 'As soon as we have resolution on where tariffs are going to head out, and we don't want to put up guidance, and then have something change.'
Yahoo
17 hours ago
- Business
- Yahoo
Repositioning Banana Republic to Regain Relevance
Banana Republic has been hanging in for decades, seeking to reconnect with consumers through a succession of repositionings, from the original safari style to serious careerwear to business casual, and as of late, some modern utility. The path has been bumpy, marked by store fleet downsizings, management changes, logo changes, category introductions of mixed success, and an inability to attract the next generation of shoppers. Two years ago, Banana Republic introduced a home assortment. A year later, the furniture was discontinued while soft home items, like towels, throws and pillows, continue to be sold. Two categories — BR Baby and BR Athletics — were introduced three years ago and didn't do much to move the needle. More from WWD Gabrielle Union Anchors Bold Banana Republic Dress With Textured Manolo Blahnik Raffia Mules at Proudly x JCPenney Launch Laura Harrier and Zac Posen Celebrate Denim and Dandyism in Bold Gap Studio Suit That Challenges Binaries Around Masculinity and Femininity 'The White Lotus' Actor Nicholas Duvernay Stars in Banana Republic's Spring 2025 Campaign Featuring Timeless Pieces, 'Buttery' Suede and More But the most recent changes — and they're ongoing — seem more consequential considering Gap Inc. chief executive officer Richard Dickson has been on the case since the abrupt departure of Sandra Stangl in May 2024, Banana's last president and CEO. 'We've gone back to the roots of the brand and what made it great to begin with — the Safari look but we're reestablishing the brand to convey a modern explorer and travel story. It's really starting to resonate,' Dickson told WWD. 'There is still work to do but we are continuing to strengthen the foundation with each passing quarter.' The White Lotus x Banana Republic limited-edition capsule collection, inspired by the HBO series 'The White Lotus,' helped spotlight the brand and convey its new approach. Dickson also said the search for a new Banana Republic president and CEO continues and that he has been meeting with 'some extraordinary talent.' There seems to be no rush given it's been over a year since there was someone in that role. Dickson, however, did acknowledge that he's been devoting a greater portion of his time to being more hands-on at Banana Republic. The game plan revolves around evoking what put Banana Republic on the map in the first place — a sense of adventure and exploration but through revised merchandising and marketing. There are early signs that recent efforts are bearing fruit, with Banana's comp sales flat last quarter, and total sales down 3 percent. 'The flat comp in the quarter is actually great progress,' Dickson said. 'We've leaned into classics, fits are resonating, men's is performing really well, and there is an improved performance in women's.' For all of 2024, Banana Republic reported comp sales were up a point, and total sales were flat. Recently, WWD met with Meena Anvary, Banana's head of marketing, at the Banana Republic flagship in SoHo, where she explained how the collection is evolving, how the brand positioning is being clarified, and how the 'storytelling' has become richer. She said Banana is going 'back to its roots but in a modern way,' utilizing higher-quality fabrics from Italy, exhibiting more texture such as jacquards and softer color palettes, and overall designing so the fashions convey 'a modern utility where practicality meets style.' 'We're seeing a natural evolution in both women's and men's offerings that reflects a modern sense of ease and timelessness,' Anvary said. 'For women, we've expanded our dress assortment to include airy silhouettes, coastal color palettes and a versatility that's great for any occasion this summer. 'For menswear, it's about modern utility with garments that are both purposeful and elevated. The pieces are crafted from premium fabric mills in Italy and tailored for comfort, style and versatility.' Modern utility, she explained, is about 'marrying function with form in a way that feels intentional and elevated. This is seen through subtle design cues, such as clean lines, convertible pieces, unexpected pockets, and epaulettes, which are a nod to our heritage in exploration, but through a contemporary lens. Epaulettes, specifically, are an homage to our past but reinterpreted in refined, luxurious fabrics. It's that balance of polish and practicality that defines our brand.' She was referring to Banana Republic's safari look which was most prominent in the 1980s. What also stood out at the flagship was an ample presentation of third-party brands, about 10 in all, including hats from Australia's Lack of Color; Castañer footwear, which is known for its craftsmanship and espadrilles; Hunza G swimwear, and cool eyewear from Le Specs, thereby taking a lifestyle merchandising approach. Also on display were candles, books and body washes. 'We highlight tastemakers in our campaigns and in-store activations, whether it be an artist, a chef or someone in entertainment to bring the world of Banana Republic to life in a multidimensional way,' Anvary said. For example, she said Banana Republic has been partnering with Jonah Reifer on events at the SoHo store and has featured Tyler Florence in Banana Republic's 'Art of Living' series on social. 'Our summer collection inspires a sense of ease and timelessness and takes people on our travels. We were inspired by Sicily and Majorca and went on a journey through charming towns, romantic coastlines,' Anvary said. The summer campaign, she added, has 'a local perspective highlighting a sense of curiosity and discovery our customer loves. 'We also tie into the quality and craft inherent to Italian culture and our linen, which is milled in Italy. In Majorca, we were inspired by the slower pace of life and connecting to nature, the rocky coastlines and fishing boats. Majorca inspired our original shell print for the season, while shirtdresses, leather sandals, and plenty of linen round out the uniform for summer travel.' She said Banana Republic is 'creating stories beyond the clothes themselves, and it lives across every detail, from the way a print is illustrated to the settings we choose for our campaigns. We tell an immersive story, infusing our campaign with the character and charm of our travels to create connection and a true sense of place. This summer's campaign is a perfect example. We shot in Majorca and Sicily, locations rich in character and culture. We engaged local Sicilians we met along the way and included them in our campaign, like Rosaria who has lived in an apartment above the town square in Cefalù for more than 40 years. She even shared her family's limoncello recipe with us.' Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
21 hours ago
- Entertainment
- Yahoo
Sarah Jessica Parker Goes Boho Chic in Paris, Kristin Davis Favors Florals in Rixo Dress and More Looks at the ‘And Just Like That…' Season Three Premiere
The cast and creative team of 'And Just Like That…' attended their latest event on the promotional tour for the third season of the HBO Max series. Sarah Jessica Parker, Cynthia Nixon, Nicole Ari Parker, Kristen Davis and more attended the Season Three premiere of the series in Paris on Wednesday. The cast opted for designer pieces, wearing looks by Magda Butrym, Lela Rose and more. Ahead, WWD breaks down those looks from the 'And Just Like That…' Season Three premiere in Paris. More from WWD Brigitte Macron's Indonesia Tour Style: Pops of Purple, Louis Vuitton Looks, Suited Attire and More Scarlett Johansson Pops in Strapless Saint Laurent Dress, Mia Threapleton Goes Green in Elie Saab and More From 'The Phoenician Scheme' NYC Premiere Ana de Armas Goes Strapless in Louis Vuitton for 'Ballerina' Premiere in Paris Sarah Jessica Parker opted for boho styling. The Emmy Award-winning actress wore a white dress with billowing sleeves and a high neckline with a ruffled collar. Lace details cascaded down the flowing skirt of the look, adding feminine touches throughout the striking piece. Nicole Ari Parker opted for a look courtesy of Magda Butrym for her attire. The actress took inspiration from suiting, wearing a blazer with exaggerated, sharp lapels and long black sleeves. She also wore a black top with a high neckline, contrasted by a crisp white skirt with a rosette detail. Parker completed the look with sheer black tights with polka dots and black pumps. Kristin Davis favored a maxidress courtesy of Rixo. The look included ruffled sleeves and featured a bevy of florals. The semi-sheer black fabric served as the base for red rosettes with hints of green leaves. The ensemble included a ruffled neckline and tiered ruffles at the bottom of the skirt. A subtle wrap element added definition to the silhouette at the waist. Sarita Choudhury also favored florals in a custom strapless midi dress by Lela Rose. The actress' look featured a sweetheart neckline with slightly ruched fabric. Cinched at the waist, the silhouette of the dress featured a column skirt. Choudhury's look was curated by stylist Caitlin Burke. Cynthia Nixon wore a look courtesy of A.W.A.K.E. Mode's pre-fall 2020 collection. The ensemble featured a crisp white, long-sleeve jacket with sinuous lapels. The ensemble included a cinched waist with a long wrap belt. Nixon's skirt included several pleats. 'And Just Like That…' Season Three follows Carrie Bradshaw (Sarah Jessica Parker) and her friends navigating friendship, family and romantic relationships during a summer in New York City. The third season of the HBO revival of 'Sex and the City' debuts on Thursday. View Gallery Launch Gallery: 'And Just Like That' Season 3 Red Carpet Arrivals Photos, Live Updates: Sarah Jessica Parker and More Best of WWD Princess Charlene of Monaco's Grand Prix Style Through the Years: Louis Vuitton, Akris and More, Photos Princess Charlene's Monaco Grand Prix Style Evolution at Full Speed: Shades of Blue in Louis Vuitton, Playful Patterning in Akris and More Kate Middleton's Royal Rewears Through the Years
Yahoo
a day ago
- Business
- Yahoo
Destination XL Slips Into Red as Male Customers Shift to Lower-priced Apparel
Destination XL Group slipped into the red in the first quarter in response to what its chief executive officer characterized as the 'economic downcycle' that prompted a customer shift away from designer brands to lower-priced goods. In the period ended May 3, the Canton, Mass.-based men's big and tall retailer reported a net loss of $1.9 million, or 4 cents a share, compared to net income of $3.8 million, or 6 cents a share, in the same period last year. More from WWD Tariff Impact Evident in Caleres' Q1 as Sales, Profits Slide Navigating Tariff Turbulence With Pricing Elasticity FDRA Pushes Trump For Relief as Vietnam Tariff Talks Resume in June Total sales dropped 8.6 percent to $105.5 million from $115.5 million in the first quarter of fiscal 2024. Comparable-store sales decreased 9.4 percent. The company did say that sales improved as the quarter progressed with comps down 13.9 percent in February, 8.2 percent in March and 7.2 percent in April. But for the first three weeks of May, comps are down just under 10 percent. By channel, comparable sales in the DXL stores dropped 6.6 percent but 16.2 percent online. Even so, the retailer has made some tweaks that are expected to improve its performance in the second half. 'We believe that our targeted promotions, which include our Price Match Guarantee, Fit Exchange by DXL, our Hero/First Responder discounts as well as the introduction of new value-driven brands, have had a positive impact on our store traffic,' the company said. 'The direct business, which includes our website, app and marketplaces, struggled during the first quarter of fiscal 2025 and was challenged by decreases in online traffic and average order value, while conversion was relatively flat.' The company also said that there were some 'functionalities' that likely had a negative impact on sales in the quarter, but those have been corrected. As a result, it said it expects comp sales to gradually improve the remainder of the year and is projecting a single-digit decrease in the second quarter followed by a return to positive comps in the second half. In reporting the earnings Thursday morning, Harvey Kanter, president and CEO, said: 'We are currently managing our business through an economic downcycle, and our performance does not reflect the opportunity in our total addressable market or the longer-term potential for our brand. We believe the broader macroeconomic challenges within the apparel industry and consumer sentiment are pushing our customer to be more discerning in what he is buying. Our assortment is well positioned to serve those value-oriented customers who are trading down from national designer brands to our private label brands, which have lower average unit retail prices but higher margins.' He said in the first quarter, private brands accounted for 57 percent of sales, up from 55 percent last year. But national brands continue to be a focus. Kanter pointed to last month's introduction of Dickies and Haggar, which have performed in line or above plan respectively. And the Perry Ellis brand was just introduced last week. Turning to tariffs, Kanter said the situation remains 'very fluid and we continue to monitor trade discussions and changes to policy as they develop. We are leaning into relationships with our vendors and suppliers around the world and we are working very hard to mitigate the cost of those tariffs. Our discussions with our private label vendors have been productive. On the domestic side, we are also having dialogue with our national brands as we all try to navigate this environment.' In the company's earnings call Thursday morning, Kanter said that assuming the current global tariff rate policies do not change for the balance of the year, and no new tariffs are added, he expects the impact to add less than $2 million to costs this year. Approximately 80 percent of DXL's private label imports are sourced from Vietnam, Bangladesh and India and fewer than 5 percent from China. 'At this point, we have not yet taken any price increases, but that is still possible,' he said. 'We are continuing to assess whether there is enough price elasticity of demand to take market share by keeping constant prices at lower margin versus passing on the impact of those tariffs to the end consumer to maintain our margins but risk losing share. We know there is a sensitivity to price and we are trying to be smart about how we strike the right balance.' Kanter also provided an update on the company's performance on the Nordstrom Marketplace. DXL went live on the site in June of 2024 and now offers 37 brands and more than 2,200 styles. Top performers include Polo, private brands Harbor Bay and Oak Hill, as well as Vineyard Vines, Brooks Brothers and Reebok, he said. Destination XL operates a total of 290 stores under the DXL and Casual Male nameplates. In the first quarter, the company opened two new DXL stores and converted one Casual Male XL full-price store and one Casual Male XL outlet to DXLs. The company expects to open four additional stores this year before it pauses to focus on stabilizing the business and preserving cash flow, Kanter said. The company also touted a new technology that is expected to help boost business. Called FiTMAP, it is a proprietary sizing technology for which DXL has the exclusive license for big and tall men until 2030. It is a contactless digital scanning technology that captures 242 measurements to ensure a proper fit and can be used for both ready-to-wear and custom apparel. Currently, FiTMAP provides recommended sizes for all of DXL's private brands as well as 15 national labels. To date, the retailer has scanned over 20,000 customers in the 52 DXL locations where it is currently offered. The plan is to roll out the technology to 85 stores by the end of this year and to as many as 200 stores by the end of fiscal 2027. Best of WWD China's Streetwear Whisperer: Peter Zhong Some 600 Exhibitors Expected at Pitti Uomo's 101st Edition Peter Manning Purchased by Longtime CEO Who Plans Expansion Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
EXCLUSIVE: Bottega Veneta Celebrates 50 Years of Intrecciato Weave With Campaign Including Julianne Moore and Stray Kids' I.N
MILAN — Bottega Veneta is not letting the 50th anniversary of its signature Intrecciato leather weave go unnoticed: The Italian luxury brand launched Thursday a dedicated campaign called 'Craft Is Our Language.' 'For 50 years, Intrecciato has embodied Bottega Veneta's craft and creativity,' Leo Rongone, chief executive officer of the Italian brand, told WWD. 'Season after season, it has both endured and evolved, finding new expressions in color, scale, size and texture. It is the ultimate synthesis of our artisanal knowledge and aesthetic imagination.' More from WWD Here's Why Tracee Ellis Ross Used a Height-illusion Styling Hack in Bottega Veneta Boots for Kendrick Lamar's Concert in Los Angeles Valentino Chief Communication Officer Tanja Ruhnke Departs Brand Mary J. Blige Goes All-pink in Bottega Veneta Thigh-high Boots and Silk Emilio Pucci Look for New York Knicks Game Halftime Show Photographed by Jack Davison and choreographed by Lenio Kaklea, the campaign celebrates the brand's creativity and manual craftsmanship — literally shining a light on the hands and their gestures as a universal language connecting people across generations, cultures, backgrounds and contexts. While Bottega Veneta teased on social media closeup images of a few hands, there's much more behind the campaign that WWD can exclusively reveal. The company has enrolled an expansive group of talents from the art, film, fashion, literature, music and sports industries and artisans for the still images and short films. These include singer-songwriter and record producer Jack Antonoff; director Dario Argento; designer Edward Buchanan, who was design director of the house from 1995 to 2000, introducing its first ready-to-wear collection; artist and sculptor Barbara Chase-Riboud; singer-songwriter Neneh Cherry; filmmaker and record producer Dave Free; Lauren Hutton, a friend of the house who famously carried an Intrecciato clutch in the 1980 film 'American Gigolo'; brand ambassadors Julianne Moore, Shu Qi and Stray Kids South Korean vocalist I.N; actors Troy Kotsur, Vicky Krieps, Terrance Lau and Rie Miyazawa; tennis player Lorenzo Musetti; writer Zadie Smith; singer-actress Thanaerng; recording artist and producer Tyler Okonma and conductor Lorenzo Viotti. 'At its heart, Intrecciato is an act of encounter, interweaving, and exchange. With this campaign, we celebrate our signature craft and its spirit of dialogue — between hand and heart, maker and wearer, past and present,' said Rongone. Weaving together the leather strips is seen as a metaphor and a symbol of interconnectedness, reflecting the collaborative ethos of the brand, which was founded in Vicenza by a collective of artisans in 1966, and is now controlled by Kering. 'Intrecciato is distinguished by its honed proportions, diagonal arrangement, and the exceptional quality of its leather,' continued Rongone. 'As a no-logo house, our signature weave holds special significance. It is the visual, symbolic, and tactile identifier of Bottega Veneta.' The images are presented in both individual and paired compositions and, in the short films, Bottega Veneta artisans converse with Chase-Riboud, Hutton, Thanaerng, and Lau. 'While Western discourse tends to distinguish between artist and artisan, 'Craft Is Our Language' honors the shared etymological root of both words, derived from the Latin ars, meaning art, skill, craft,' stated the company. Through the years, the brand's creative directors have worked with the Intrecciato weave, from Buchanan, Laura Moltedo and Tomas Maier to Daniel Lee and Matthieu Blazy, who exited last December, succeeded by Louise Trotter. The campaign was conceptualized and photographed in the interim, as Trotter's chapter will begin in September, when she will unveil her first collection for Bottega Veneta during Milan Fashion Week. The campaign pays homage to Milanese artist and designer Bruno Munari and his classic 1963 handbook of Italian gestures, 'Supplemento al Dizionario Italiano (Supplement to the Italian Dictionary).' The book is now published by Corraini. 'Craft Is Our Language' will also include a book, to be released in September with a second installment of images and films, featuring an additional cast of talents. 'The book will represent the 50 gestures that constitute a 'dictionary' of the language, the craft, and the values of Bottega Veneta,' said the company. First introduced in 1975, Intrecciato has become the hallmark of the house, and it requires hours, sometimes days, of artisanal patience and skill as it involves hand-weaving slender leather strips, called fettucce, into a leather base panel, or around a wooden mold in a diagonal arrangement. Best of WWD Bottega Veneta Through the Years Chanel's Ambassadors Over The Years Ranking Fashion's Longest-serving Creative Directors
