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Business of Fashion
a day ago
- Entertainment
- Business of Fashion
Has Fashion Given Up on Emerging Designers?
Dear BoF Community, ROME and MILAN — This week in Rome, I had the honour of sitting down with Giancarlo Giammetti for an exclusive interview on The BoF Podcast. For those not in the know, Mr. Giammetti first met the designer Valentino Garavani by chance on July 31, 1960, setting in motion one of fashion's most enduring — and most successful — creative partnerships. Together, they built Valentino into a global fashion powerhouse, celebrated for its elegance, craftsmanship and cultural influence. This was a love story and a business partnership, beautifully (and honestly) rendered in Matt Tyrnauer's 2008 documentary, 'Valentino: The Last Emperor.' Mr. Giammetti was refreshingly candid in our conversation, laying bare his thoughts on the state of fashion today, the musical chairs of constant designer shuffles, the egos of designers who want to be bigger than the brands they work for, and most of all, the lack of support for emerging designers. 'How many new brands have been created? I don't know,' he said. 'The last one I remember is [Giambattista] Valli or maybe Jacquemus. Why? I don't think that the big conglomerates want to put money in somebody new. They want to [focus] on their own portfolio, the names that they [already] have. But to invest in one talent? I haven't seen anything.' There was a similar refrain when I chatted with fellow jury members at the Camera Moda Fashion Trust Grant in Milan later in the week. I was busy typing away on my computer at the Fondazione Sozzani, doing a final review of BoF's reporting on Maria Grazia Chiuri's confirmed exit from Dior, when Marco Bizzarri arrived for the judging. He popped over to say hello and we chatted about the dire and uncertain state of the industry. Completely independently of my conversation with Mr Giammetti, he mentioned how concerned he is that the big groups don't seem to be interested in backing young talents. I reminded him that Kering's investments in Christopher Kane and Altuzarra — as well as LVMH's investment in Nicholas Kirkwood — were largely seen as failures. Not because these aren't talented designers with real potential, but because placing small, emerging businesses within the structure of gargantuan luxury groups means they received very little management attention. But I agreed with his point that if we don't support and cultivate emerging talents — even if the groups lose some money on these investments — the creative future of fashion is doomed. LVMH's investment in Jonathan Anderson's label, which coincided with his appointment as creative director of Loewe in 2013, tells a slightly different story. While J.W. Anderson is still a small-ish, loss-making business which did around £30 million in revenues in 2023, according to filings at the UK's Companies House, Loewe is now nearing €2 billion in sales. The business has grown almost tenfold since Anderson took over and everyone is now awaiting the confirmation that he will take over as artistic director of Dior. Not a bad return on that investment. Later, over a plate of pasta after the judging had concluded, Sara Sozzani Maino, who has been spearheading the Fashion Trust for the last few years, threw her hands in the air Italian-style, expressing to me how hard it has been to find financial support from the Italian fashion industry for the trust, which aims to support the new generation of Made in Italy designers. Remo Ruffini and Moncler have been especially supportive, she said, as well as Max Mara, Valentino, Gucci and Pomellato who have supported the Trust for some time. But the vast majority of brands declined to help, offering up a range of reasons from budgets being closed to focusing on their own internal support initiatives. She was asking for just €50,000 per brand. In the absence of this kind of financial support, some of the finalists for the Fashion Trust Grant explained to me that they have to do consulting work for other brands to survive. But this means they have less time to focus on their own businesses and are designing to achieve someone else's ideas, even if in their heart all they want to do is focus on developing their own creative vision. As any seasoned entrepreneur will tell you, it's much harder to succeed at building your own business if it's just a part-time job. At the gala dinner in the evening, my seatmate Carla Sozzani said she is worried that even if the young designers can survive the turbulent market environment, they have nowhere to sell their clothes. The multi-brand retail market in Italy is in turmoil, just as it is in the US and many parts of the world. (Emerging designers in Italy complained to me of the same problems of not getting paid by Saks, Neiman Marcus and Bergdorf Goodman, among others.) What they also need, Sozzani said, is a partner like Mr. Giammetti, who provided a lifeline of support for Mr. Valentino through all of the rigours of building a business from scratch — including a bankruptcy, buying the business back from their first investor and then navigating several waves of different investors who came afterwards, eventually leading Mr. Valentino and Mr. Giammetti to leave the business after the control investors wanted was all too much. Just after our main courses, the three winners selected by the jury — Lessico Familiare, Francesco Murano and Institution — were awarded their €50,000 grants. Then, Maino stepped to the microphone to announce there was a surprise. Winners and Judges at the gala dinner for Camera Moda Fashion Trust. (Courtesy) Marco Bizzarri came on stage to express his passion for Moja Rova, another emerging brand that many of the judges also liked. It was hard for us to choose from so many deserving applicants, so Bizzarri put his money where his mouth is and fronted the €50,000 personally to offer a fourth prize. This is the kind of support we need to see from more of the big players in our industry. As I said to Mr Giammetti at the end of our interview when he turned the tables to ask my opinion, 'I think about the cost that this is going to have on our industry in the future. If we don't nurture smaller creative talents and businesses today, what will fashion look like 10, 20 years from now?' Imran Amed, Founder and Editor in Chief Here are my other top picks from our analysis on fashion, luxury and beauty: 1. Why Blockbuster Deals Are Back in Fashion. In an era of tariffs and turmoil, fashion's boldest players are placing billion-dollar bets — and finding bargains in a high-risk, high-reward wave of M&A. In an era of tariffs and turmoil, fashion's boldest players are placing billion-dollar bets — and finding bargains in a high-risk, high-reward wave of M&A. (Courtesy) 2. Hello, Goodbye: Maria Grazia Chiuri's Next Chapter. If there was 'beautiful confusion' in the mix of cruise and couture the powerhouse designer paraded in Rome on Tuesday night, the standing ovation at the end of the show left little doubt she was saying goodbye to Dior after a transformational near-decade tenure and hello to her next act, resurrecting the storied Teatro della Cometa. Dior designer Maria Grazia Chiuri staged an elaborate runway spectacle at the Villa Albani Torlonia in her hometown of Rome on Tuesday night. (Getty Images) 3. Can Jewellery Continue to Outshine Fashion? As leather goods lose their cool amid rising prices and quality concerns, fine jewellery is emerging as luxury's shining star. Jewellery giants like Cartier continue to steer clear of the post-pandemic price hikes implemented by many fashion brands. (Cartier) 4. Why Food Is Everywhere in Fashion Advertising. As foodie culture peaks and the cost of living rises, food is popping up more than ever in fashion imagery. Fashion's latest marketing obsession is food. (BoF Collage) 5. David Bailey, Immortal. A new exhibition aims to prove the iconic photographer's claim to everlasting impact rests on more than his portraits from Sixties London, writes Tim Blanks. David Bailey and Madge. (© David Bailey) This Weekend on The BoF Podcast The author has shared a YouTube video. You will need to accept and consent to the use of cookies and similar technologies by our third-party partners (including: YouTube, Instagram or Twitter), in order to view embedded content in this article and others you may visit in future. In this exclusive interview, Mr. Giammetti reflects on the founding days of Valentino, the importance of protecting creativity in a fashion market that prioritises commercialisation, and why it is critical for the industry to support future generations of designers who are overlooked by a fashion system under pressure. 'This continuous change of people, using people to cover jobs … it makes a big confusion. None of them really becomes a part of the legacy of the company. That's what is a big problem today,' says Giammetti. To receive this email in your inbox each Saturday, sign up to The Daily Digest newsletter for agenda-setting intelligence, analysis and advice that you won't find anywhere else.
Business of Fashion
a day ago
- Business
- Business of Fashion
Natura CEO Bets on Mexico as Cosmetic Maker Recovers
Natura & Co. is targeting the Mexican market in its push to boost sales as chief executive officer João Paulo Ferreira works to reinvigorate the cosmetics company after disappointing earnings at the end of last year. 'We will grow disproportionately in Mexico,' Ferreira said in an interview. Natura plans to expand its presence in the country from its current footprint of 16 stores and stands, as well as its online operation and its network of more than 500,000 beauty consultants that offer its products in the country. Ferreira declined to provide any targets for store openings. Natura is offering its entire product line, from perfumery to hair products and makeup, in Mexico but currently has just a 5.4 percent share of the market. That trails the 11.5 percent share that French rival L'Oréal holds in Latin America's second-largest economy. While the Brazilian company plans to accelerate its investment in Mexico through organic growth, the CEO didn't rule out an acquisition in the future. Ferreira, who led the Latin America division before being named to oversee the entire group in March, said his goal is to 'capture value from our own business' while laying the groundwork to resume dividend payments. Natura shares plunged 30 percent on March 14 after fourth-quarter results fell short of expectations, sparking investor criticism. The stock has pared some of those losses to trade at about $10.50 a share, down 17.7 percent so far this year. Ferreira said he's hoping to restore market confidence with a clearer strategy and financial discipline. 'The Latin America business is a cash generator and we want to minimize cash consumption,' the CEO said in New York this month. 'We don't have short-term debt — and it's relatively cheap — so in the near future we can expect dividends again.' Ferreira spent 48 hours in the US financial capital for meetings with international investors, saying his message to them was that Natura is 'back on track' under his leadership. He also detected growing interest among global money managers about its home market. 'They were keen to talk about Brazil — more than I expected,' he said. Amazon & Avon Natura is famous for using Amazon rainforest ingredients in its beauty products and is planning to announce a biodiversity research facility in the region during the COP30 summit in November. The 30th edition of the marquee United Nation climate conference will be held this year in the northern Brazilian city of Belem. Ferreira said Natura isn't on the hunt for deals in the short term, but may analyze acquisition opportunities after its Avon International unit completes the bankruptcy protection process it initiated last August. Avon 'should not burn as much cash as it burned last year, including the restructuring costs,' Ferreira said. Asked about a possible buyer for Avon, he said Natura is considering all options, including the sale of assets in parts or in a block. By Rachel Gamarski Learn more: Natura's Losses Rise to $181 Million But Margins Grow In its first-quarter results, the Brazilian beauty company's losses widened and revenue dropped, but grew margins as it continues a turnaround plan that has seen it shed Aesop and The Body Shop.
Business of Fashion
a day ago
- Business
- Business of Fashion
Giancarlo Giammetti on Securing Valentino's Legacy
Listen to and follow the 'BoF Podcast': Apple Podcasts | Spotify | Overcast Background: Giancarlo Giammetti met Valentino Garavani by chance on July 31, 1960, setting in motion one of fashion's most enduring — and most successful — creative partnerships. Together, they transformed Valentino into a global fashion powerhouse, celebrated for its elegance, craftsmanship and cultural influence. In 2016, Giammetti co-founded the Fondazione Valentino Garavani e Giancarlo Giammetti to preserve their remarkable legacy, promote creativity and foster charitable initiatives. This week in Rome, BoF founder and CEO Imran Amed had the honour of sitting down with Mr. Giammetti at PM23, the newly opened home of the foundation, located right next to the Valentino headquarters where their journey together first began. In this exclusive interview, Mr Giammetti reflects on the founding days of Valentino, the importance of protecting creativity in a fashion market that prioritises commercialisation and why it's critical for the industry to support future generations of designers who are overlooked by a fashion system under pressure. 'This continuous change of people, using people to cover jobs … it makes a big confusion. None of them really becomes a part of the legacy of the company. That's what is a big problem today,' says Giammetti. Key Insights: Giammetti highlights the strength of his decades-long partnership with Valentino, emphasising their deep personal and professional connection. 'We grew up related so much to each other that we cannot be separate,' he says. 'Even when we had some rupture in our private life, after a while, we kept our family. That's why we have such a big family — because all of our friends became friends of our family with us.' Giammetti expresses concern about the fashion industry's current state, noting the disconnect between creative integrity and business pressures. 'Designers have become their own stars, they have their own style, and they don't want to really become a witness to the work of the companies where they are hired to prolong life – they want to work for themselves,' he says. Giammetti believes in preserving the heritage of fashion through new means. 'I hate fashion museums. I think that to see all the mannequins like Madame Tussauds look really like wax things. I don't think there is a life inside,' he says. 'With digital work, you have to work with that to project your legacy in a different way.' Giving advice to aspiring creatives, Giammetti encourages young designers to remain true to themselves and avoid distractions. 'Be yourself. Don't get distracted. You have to believe in yourself and do what you want.' The author has shared a YouTube video. You will need to accept and consent to the use of cookies and similar technologies by our third-party partners (including: YouTube, Instagram or Twitter), in order to view embedded content in this article and others you may visit in future. Additional Resources:
Business of Fashion
a day ago
- Business
- Business of Fashion
Dolce & Gabbana Gets Fresh Cash to Fund Bet on Beauty Products
Dolce & Gabbana Srl has obtained additional debt from its creditors to fund its expansion in the beauty and property sectors. The Italian fashion house, known for its Mediterranean-inspired designs, has agreed with banks on new financing of €150 million ($170 million), a representative confirmed by email. The new debt is partially guaranteed by state-backed credit insurer SACE SpA. Dolce & Gabbana has also agreed to refinance its existing loans, which originally totalled €400 million but had been partially repaid, said the representative. Discussions with bank lenders had been ongoing for months, as the company looks to pivot its strategy and broaden its revenue streams. Dolce & Gabbana's management is betting that its beauty business will be key if it is to remain an independent company in the rapidly shifting luxury industry. Revenue from beauty products is expected to rise more than 20 percent for the 12 months through the end of March 2025, said chief executive Alfonso Dolce in an interview with Bloomberg News earlier this year. The fashion house, like its peers, is navigating a period of uncertainty amid slowing demand for luxury goods. Some have opted for consolidation: Hong-Kong listed Prada SpA in April agreed to buy Gianni Versace Srl. By Antonio Vanuzzo and Giulia Morpurgo Learn more: Dolce & Gabbana Looks to Beauty to Safeguard Independence The company is targeting €1 billion in annual beauty sales by the end of its 2027 financial year, following a shift from licensing to direct management of the production and distribution of its fragrances, makeup and skincare, said CEO Alfonso Dolce.
Business of Fashion
a day ago
- Business
- Business of Fashion
Why Blockbuster Deals Are Back in Fashion
Stock market jitters, recession fears and President Donald Trump's mercurial trade policy are often cited as reasons to hold off on making any big decisions. And yet the fashion and beauty industries' deal sheets keep getting longer. Since Trump announced his tariff policy in April, there have been five major acquisitions, from Prada Group's $1.4 billion acquisition of Versace to E.l.f.'s $1 billion buyout of Hailey Bieber's Rhode on Wednesday. And that's not counting the secondary offering of shares that Birkenstock and Amer Sports issued Thursday, as much a show of confidence in the market as their own brands. This isn't how it was supposed to go. Prior to last month, there had been only a trickle of major fashion or beauty deals, with hot brands — including Rhode — seeming to languish on the market for want of buyers. Trump's tariffs and signs of a US economic slowdown were expected to deepen the freeze. Theoretically, retailers and investors are better off playing it safe, reserving cash flow in case consumer spending, already on shaky ground before Liberation Day, falls further. So why is the M&A market suddenly booming? No single factor explains all five of these deals. Capri Holdings sought to offload Versace as it works to turn around Michael Kors, its biggest brand. Levi's, too, was looking to narrow its focus when it sold its Dockers chino label to Authentic Brands Group on May 20 for $311 million. But both E.l.f. And Dick's Sporting Goods were looking to build out their portfolios with their acquisitions of Rhode and Foot Locker, respectively. And Skechers' $9.4 billion sale to private equity firm 3G on May 5 likely had an element of succession planning to it, given founder Robert Greenberg is 85 years old. Some of these deals still might have happened if Kamala Harris won the election, or US consumer confidence was still buoyant. But it's also true that volatile times make for unique opportunities. 'There are people with enough foresight and risk tolerance to look at dislocation and see uncertainty as creating an opportunity rather than a barrier,' said Simeon Siegel, analyst at BMO Capital Markets. Bargain Hunting. With the exception of Rhode, all the brands that passed hands in the last two months were purchased at a discount. Prada, for instance, nabbed Versace for $700 million less than what Capri paid in 2018. Even after Dick's agreed to a nearly 90 percent premium for Foot Locker, the sneaker retailer's stock still trades below its year-ago level. Skechers also sold at a small discount to its stock price as recently as February. 'For buyers, these current valuations are lower than the fundamental valuation of the businesses they acquire because of the moment in time influenced by trade policies,' said Matthew Tingler, managing director of Baird's global consumer investment banking group. Tingler said he anticipates that more deals will materialise in the coming months. Marissa Lepor, managing director at boutique investment bank the Sage Group, said the deals she has worked on in recent months have not been deferred by the news of tariffs. Buying Power. Acquirers like Prada, Dick's Sporting Goods and E.l.f. have consistently outperformed their peers in recent years and have accumulated the cash to be able to take a risk by expanding into new categories or markets, even in a weak economy. 'The businesses that have diverse infrastructures and very experienced management teams are much more agile to navigate [economic uncertainty],' said Lepor. The Price of Inaction. Beyond the question of why, the question of why not is just as relevant, according to Lepor. 'There's risk to doing anything but there's also a risk to doing nothing,' she said. 'Every time a public company chooses not to acquire a business but their competitor does, there's a potential significant cost to the loss of business.' High Risk, High Reward. Still, snapping up a fashion brand in a volatile economy is no sure bet, especially with tariffs threatening margins and consumer confidence on shaky ground. Dick's acquisition of Foot Locker, a mall chain that has struggled to adapt to the shifting streetwear landscape, will hinge on its capacity to rehabilitate a fading business at a time when shoppers are reluctant to open their wallets. While the risks may be significant, so is the potential payoff. E.l.f.'s acquisition of Rhode is case in point: a bold swing in a shaky market, but one that offers massive potential returns from a prestige Gen-Z skincare brand at a time when mass-market-focussed E.l.f.'s own growth has slowed. 'It's natural for people to feel paralysed in times of uncertainty but heroes are created in years of famine — not years of feast,' said Siegel. THE NEWS IN BRIEF FASHION, BUSINESS AND THE ECONOMY (Getty Images) A federal appeals court allowed Trump's tariffs to stay in effect for now. The order pauses a previous federal trade court ruling blocking Trump's tariffs while the appeals court weighs a longer stay sought by the Trump administration. Shein is working towards a Hong Kong listing after the London IPO stalled, sources said. The fast fashion e-tailer aims to file a draft prospectus with Hong Kong's stock exchange in the weeks to come, after its proposed initial public offering in London failed to secure approval from Chinese regulators. LVMH's deputy CEO said it has room to raise prices 2 to 3 percent. Stephane Bianchi said in a French parliament hearing that to offset tariffs, the conglomerate can lift prices of high-end products without hurting demand, but cannot raise prices for cognac or beauty products. Executives said they will continue to invest in China, despite dwindling demand. Italy's Golden Goose ruled out an IPO this year, but predicted limited impact from tariffs. The luxury sneaker maker's CEO Silvio Campara said it still views a market listing favourably in the future and is open to merger and acquisition options. The company reported a 12 percent rise in net revenues and opened three new stores in the first quarter. Foot Locker sales missed ahead of the Dick's Sporting Goods purchase. The sneaker retailer's sales slump continued in the latest quarter with comparable store sales having fallen 2.6 percent, lower than analysts had expected. Foot Locker declined to provide an annual forecast and conference call to discuss results amid its pending acquisition by Dick's. Dick's Sporting Goods maintained its outlook ahead of the Foot Locker deal. The athletic apparel and equipment retailer maintained its annual sales and profit forecast, with comparable store sales expected to gain 1 to 3 percent this year. The fiscal outlook doesn't account for impact from its blockbuster Foot Locker acquisition. Capri signalled selective price hikes on Michael Kors handbags to counter the tariff hit. The group expects total annual revenue between $3.3 billion to $3.4 billion, a sum which does not account for tariff rates or weakening consumer confidence. Abercrombie shares surged as strong demand drove the first-quarter beat. Stock jumped 25 percent in premarket trading on Wednesday after the retailer beat first-quarter expectations and raised its forecasted annual sales growth to 3 to 6 percent when accounting for current tariffs. Gap's quarterly sales beat on strong demand for Old Navy and namesake brands. The retail company maintained its fiscal sales forecast of 1 to 2 percent growth after comparable first-quarter sales rose 3 percent at Old Navy and 5 percent at Gap. Revenue lifted 2.2 percent to $3.46 billion, surpassing analyst expectations of $3.42 billion. Macy's cut its annual profit forecast amid tariff uncertainty. The department store operator now expects 2025 adjusted profit per share to be between $1.60 and $2, down from its previous target of between $2.05 and $2.25. Macy's beat first-quarter net revenue estimates with net sales of $4.6 billion and maintained its annual net sales forecast. Hudson's Bay will terminate more than 8,300 workers by Sunday. Canada's oldest retailer will lay off 89 percent of its workforce by next week, when it will conclude its liquidation sale and shutter all stores. The layoffs follow rising unemployment rates in Canada, which hit 6.9 percent in April, as US tariffs hit the economy. Temu-owner PDD Holdings missed quarterly revenue estimates. The Chinese e-commerce company suffered from weak consumer sentiment and global trade policies like the end of the de minimis duty loophole. Despite deep price cuts and government stimulus measures, PDD's year-on-year net income fell 47 percent to 14.74 billion yuan. US-listed shares fell 7 percent in premarket trading. Kohl's posted better-than-expected sales as it looks for a new CEO. The department store operator saw $3 billion in quarterly revenue, in line with analyst estimates, and a 3.9 percent drop in comparable sales, slightly outpacing analyst and company expectations. The company maintained its annual forecast. The EU warned Shein of fines in its consumer protection probe. The fast fashion giant has one month to respond to the findings and offer commitments to address the issues, and could also be targeted by the EU's Digital Services Act. Following the warning, Shein now plans to increase product safety testing, and announced it will spend $15 million on compliance initiatives this year. Italy's fashion brands signed an accord to fight worker exploitation. The non-binding agreement with legal and political authorities and trade unions focusses on the creation of a database of brands' suppliers and their workforces. THE BUSINESS OF BEAUTY (Shutterstock) Ulta Beauty cut its sales outlook on slowing consumer demand. The beauty retailer raised its full-year outlook for sales and profit after first-quarter profit and comparable sales beat expectations. Shares rose 7.3 percent in after-market trading in New York. Bath & Body Works forecast slight growth after its 2024 sales dip. The Ohio-based beauty and skincare retailer beat first-quarter profit estimates on steady demand for personal care products and limited exposure to import tariffs. First-quarter sales rose 3 percent year on year $1.42 billion, in line with expectations, while annual net sales and profit forecasts are unchanged. PEOPLE Nike's longtime design and innovation boss John Hoke announced plans to retire. Hoke will step down as chief innovation officer in October, with a successor yet to be named, in the latest executive shuffle under CEO Elliott Hill. Hoke, who started at Nike in 1992, previously served as chief design officer for 15 years. The Estée Lauder Companies tapped Lisa Sequino to lead its makeup division. Sequino, a former ELC executive who left in 2022 to lead Beauty and later Supergoop, will begin her newly created role as president of the makeup brand division on June 9. Compiled by Jessica Kwon.
