Savigny Luxury Index June 2011 | Source: Savigny Partners

LONDON, United Kingdom — The M&A and IPO scene in luxury goods and fashion continues to storm ahead. This month’s Market Pulse reveals a redefined Savigny Luxury Index which now includes Italian fashion powerhouses Prada, and soon, Salvatore Ferragamo.

Big news

• Two very high-profile IPOs: Prada listed in Hong Kong on 24 June and Salvatore Ferragamo listed in Milan on 29 June.  Both pulled off their IPOs amongst tricky conditions with high levels of IPO pullouts since the beginning of the year both in Asia and in Europe

• Stripping out Prada, which caused an artificial jump in the SLI, the SLI decreased by 2 percent; still outperforming the MSCI which decreased by 3.2 percent.  Despite concerns over rising interest rates in China, the luxury sector (along with internet stocks) has been seen as a safe haven for investors as the global economic outlook is marred by a looming debt crisis in the USA and in certain European countries

• Continued strong M&A activity: Kurt Geiger, Moncler and Uriage were all snapped up during the month

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Z Zegna in Holt Renfrew's S/S 2011 Campaign | Source: Fashionising

For Holt’s, luxury regains its proper place (Globe and Mail)
“The full-price model is part of Mr. Derbyshire’s five-year business plan to strengthen Holt’s results following a period of stagnation caused by the economic slump… His efforts seem to be paying off: Privately held Holt’s enjoyed a record profit in 2010 – double that of its next best year, 2006.”

Tommy Hilfiger Changes his Stripes (WSJ)
“‘It’s my formula. It’s my vision,’ Mr. Hilfiger says. ‘But I wanted someone to come in who respects the vision but would want to maybe modernize it a bit.’ The hires are part of Mr. Hilfiger’s broader effort to refresh his 26-year-old label’s image in the U.S., particularly among luxury consumers.

Kurt Geiger sale to Jones Group (Guardian)
“‘We’ve had a brilliant ride with private equity but now we’d like to park the company for the long term and not look over our shoulders every three or four years. It’s been a great journey but we now want to think about the next 10 years.’”

Gucci Turns 90! (Dazed Digital)
“The glamorous Italian brand celebrates its 90th birthday this year in grand style as we show images from an exclusive editorial shot at the Palazzo Alberini in Rome and speak to creative director, Frida Giannini.”

A New Look at the Art of Prada (WSJ)
“Miuccia Prada the designer—she of the black nylon backpacks, whose Italian label is often called fashion’s most intellectual—keeps art and fashion separate. ‘Definitely fashion for me isn’t art… Art is a place for ideas without any other direct concerns. If I’m a good fashion designer, it’s because I sell.’”

Kurt Geiger ad campaign

Kurt Geiger EBITDA soars 21% (Drapers)
“Premium footwear business Kurt Geiger reported that full-year EBITDA rose 21% to £12.1m, bucking the retail downturn.”

WDT boss to lead fast-fashion overhaul (Drapers)
“Asbed Momdjian, founder of World Design & Trade, the company behind young fashion brands Firetrap, Fullcircle and Sonneti, has outlined plans to turn the group into a specialist fast-fashion branded supply house and slammed the traditional two-collection, multi-brand retailer route to market as ‘dead’.”

Fuller’s 19 buys Storm model agency (Guardian)
“Group behind American Idol acquires 51% stake in agency that represents Kate Moss, Cindy Crawford and Emma Watson.”

Hartmarx sold; price not disclosed (Chicago Tribune)
“Emerisque Brands UK and its partner SKNL North America said late Friday that they completed the purchase of assets of Chicago-based suitmaker Hartmarx Corp.”

A fleeting tweeting (FT)
According to Vanessa Friedman, Twitter “is an accessory for communication, and whether you choose to try on that look or not has as much to do with identity as facility. It’s the It bag of the internet: a public declaration of allegiance to a group – albeit much less expensive, of course.”