Net-a-Porter features Utility Chic | Source: Net-a-Porter

Net-a-Porter is being acquired for up to £350m by Richemont (Telegraph)
“The deal, expected to be completed this week, will see founder Natalie Massenet, a former fashion journalist, become at least £50m richer as Richemont acquires the remaining 70pc of the company it doesn’t already own.”

Phillips-Van Heusen Acquires Hilfiger for $3 Billion (NY Times)
“Phillips-Van Heusen, the clothing conglomerate that owns Calvin Klein, announced Monday that it would buy Tommy Hilfiger, once a leading purveyor of colorful preppy clothing, for about 2.2 billion euros, or $3 billion.”

Prada accused of maltreatment (Japan Times)
“A senior manager at Prada Japan has filed a legal complaint against the Italian fashion label, accusing the company of harassment and discrimination based on appearance and alleging it maltreated other employees in the past.”

Liberty back in fashion as store weighs up bid approaches (FT)
“Liberty, the listed upmarket London retailer, is in take-over talks with Marco Capello, the former managing director of Merrill Lynch Global Private Equity , in a deal that could value the group at about £40m.”

Gen Y Will End Luxury Drought — In ‘20 (Media Post)
“The last two years have permanently altered America’s relationship with the luxe life, says Pamela Danziger… While Gen Y definitely has champagne tastes, they won’t be able to back it up with real bucks for another decade or so.”

J. Crew Spring/Summer 2010 Preview | Source: J. Crew

J. Crew Is Going Global on Net-A-Porter (Stylelist)
“Now, the classic American outfitter, currently available only in North America and Japan, has entered into an agreement with Net-A-Porter to be sold globally starting in May.”

Nordstrom’s Profit More Than Doubles (WSJ)
“Upscale department-store chain Nordstrom Inc. reported a 152 percent increase in profits during the quarter ended Jan. 30, underscoring how its strategy of expanding price points and carrying more exclusive merchandise is leading to more full-priced selling.”

Britain a cut above the rest (Telegraph)
“The creativity of these highly inspirational designers [generates] consistent demand via regular showcasing of new trends and design styles. Without this talent there would simply be no thriving high street, no £46bn sector and far fewer jobs.”

Liberty’s designer open call event (FT)
“The Liberty Best of British Open Call, an initiative launched last April by the store’s buying director… involves designers showing their wares to Liberty’s textile, furniture and fashion buyers.”

Christopher Kane updates the little black dress at LFW (Independent)
“When Gabrielle ‘Coco’ Chanel created the little black dress in the Twenties, she could hardly have foreseen the sexy leather and lace versions which graced London Fashion Week.”

Jak & Jil window at Holt Renfrew, Toronto

Holt Renfrew owner rumoured to be eyeing Barneys New York (National Post)
“Barneys, an 86-year-old luxury retailer which has famously catered to a broad and often eclectic range of needs of high-end consumers, would fit well within Mr. Weston’s portfolio and extend his buying power for his other luxury goods chains, including Holts, Selfridges in Britain and Brown Thomas in Ireland, analysts say.”

When cheap is exclusive (The Economist)
“Luxury e-tailers, which sell designer goods online at discounted prices, are flourishing. The slowdown has actually helped them, simultaneously producing seemingly endless supplies of unsold inventory and forcing consumers to tighten their belts.”

A winning formula for fashion retail (Fortune)
“Chic digital merchant Net-a-porter is proving that women will buy a $2,000 dress with just a click of a BlackBerry.”

Jay-Z’s Rocawear Line: The King Of Hip-Hop Fashion Labels (MTV Newsroom)
“At the beginning, Jay-Z’s approach to fashion was all over the map. From the baggy pants and sports jerseys that were stereotypically associated with the rap game to a tuxedo and top hat, Jay-Z’s music videos and songs incorporated various nods to fashion labels, styles and trends.”

Prada A/W 09 ad campaign, courtesy of Prada

Prada bankers contact Richemont on stake-paper (Reuters)
“Bankers for Italy’s Prada fashion house have contacted Compagnie Financiere Richemont SA about the Swiss company taking a stake in it, la Repubblica newspaper said on Saturday. In an unsourced report, the Italian daily said the banks, including Intesa Sanpaolo SpA and UniCredit SpA, would like an industrial partner for Prada with a stake of up to 30.”

Telegraph online Fashion Shop introduces Net-a-porter.com (Telegraph)
“The Daily Telegraph’s exclusive new online Fashion Shop is delighted to announce a very stylish marriage with luxury designer store Net-a-porter.com.”

A new muse: the Middle East in haute couture (The National)
“Middle Eastern-inspired fashion is currently en vogue around the world from the streets to the catwalks. But rather than merely dabbling in aesthetic exoticism, the designers and brands who are exploring the region’s sartorial traditions are drawing inspiration from a commercial viability that’s given the style such sturdy legs.”

The Fall of Christian Lacroix (WSJ)
“In 1987 the former art student stormed Paris’s staid haute couture scene with his warm colors and Mediterranean flair. Now after more than two decades of losses the brand filed for bankruptcy protection in May. Two potential buyers are being lined up, but as things stand the 58-year old once hailed by critics as savior of haute couture can no longer design clothes under his own name.”

Sexy’s back (Guardian)
“Roland Mouret, creator of the world famous Galaxy dress, knows how to make women – all women – look amazing. He talks to Polly Vernon about Spanx, Spice Girls and the power of the perfect frock.”

Diane Von Furstenberg

Tightening Belts? She’s the Expert (New York Times)
Stephanie Rosenbloom sits down with Diane Von Furstenberg.

Proposed new law sparks rift in US fashion industry (Business World)
“A proposed new law that would extend copyright protection to clothing has designers in an uproar and threatens to widen a rift in the American fashion industry.”

The chambermaid wears Prada (FT)
“Designing uniforms for restaurant employees and airline crews has long been a fashion sideline. Bruce Oldfield did it for McDonald’s staff last year; 40 years ago Emilio Pucci created a uniform for Braniff International Airways, as Julien Macdonald did, more recently, for British Airways.”

Shopping for $1,000 Shoes? There’s an App for That (New York Times)
“Net-a-Porter.com, the high-end online fashion retailer, persuaded shoppers to buy couture dresses and shoes on the Web. Now, it is betting they will buy luxury goods from their cellphones.”

Sarah Curran, Founder and CEO, my-wardrobe.com

LONDON, United Kingdom — The Business of Fashion can exclusively reveal that my-wardrobe.com, the London-based fashion e-tailer positioned at a mid-level pricepoint between Net-a-Porter.com on the high-end and Asos.com on the low-end, has just closed its second round of investment.

My-wardrobe continues to grow at a rapid pace, having achieved an extremely healthy 169 percent jump in sales in its third year, growing from £1.56m in sales in 2008 to £4.23m in the fiscal year ending March 2009.

It may not be surprising then that a group of high-net worth investors have injected an undisclosed sum of money to further the site’s expansion into menswear and international markets, amongst other initiatives. Perhaps as a sign of the times, the new funding valued shares at the same price as in the first round, as opposed to achieving a higher share price as would have normally been the case in the past. That said, the investment opportunity was heavily over-subscribed, demonstrating the market’s continuing belief in the online fashion retail segment.

It’s been a busy few months for my-wardrobe’s CEO Sarah Curran, who has also just brought in a new Chairman, Jean-Marc Bouhelier and concluded a first-ever shop-in-shop concession deal with BCBC Max Azria, but I caught up with her quickly after our panel discussion in Vienna to bring you this BoF exclusive.

BoF: You’ve just closed a round of funding in the middle of a deep recession. Tell us the details of the investment. Did you have to take a lower valuation on your business?

Following the first round of investment, my-wardrobe.com has been trading to forecast. We entered the second round of investment at the same time as the global recession was officially announced in the media. Taking into account the current economic situation, we took the view to keep the share price the same as with the first round of investment.

BoF: Raising funding in this economic environment is no easy task. How difficult was it?

The second round of investment was actually an easier sell to investors than with the first round. This came off the back of the continued and accelerated growth of the business, delivering what we promised in the first round in the Information Memorandum. As with the first round, our strategy was to target high net-worth individuals rather than institutional money. Incredibly, the second round was so successful that we found ourselves being oversubscribed, which considering the climate, it was very fortunate place to be. In fact of the investor presentations that we made, our success rate to conversion was around 80 percent.

Ultimately the reason we found it easy is because we were still delivering our growth despite credit crunch and recession. We were able to show that we had tracked according to forecast numbers, against a particularly brutal economic environment.

Following the closure of the first round, we also formalised our board and strengthened our management team. This gave future investors confidence and reassurance that the company had the support required to take it to the next level.

BoF: What do you plan to use the funds for and how long do you expect them to last?

Fundamentally the funds will be used for working capital to assist in range development, customer acquisition and developing the company’s team resources. We aim to continue the improved sales performance and we don’t have any plans for fundraising requirements. However, we will continue to monitor market opportunities and if we feel that it makes sense to invest in these opportunities, then we will consider our options at that time.

BoF: What advice do you have to other businesses looking for funding in this environment?

Believe in your product and be passionate about your brand, whilst thinking about the longer term implications of the amount of equity that you are willing to put forward. In your financial model, present a conservative forecast, but work to an aggressive target, ensuring that you always over-deliver.

Make sure that you are put in front of investors who actually understand your industry. It may sound obvious, but at times we were put in front of people who didn’t understand or believe in the online retail sector, so make sure that the potential investors that you present to have a good understanding or a belief in your product or market.

BoF:  What are your other plans for the future of my-wardrobe.com?

Our main priority at the moment is to focus on menswear and womenswear and develop and improve these departments. For the future we are considering broadening our channels and looking at options for international development, but our attention has to be on delivering the perfect 360 experience for the customer on my-wardrobe.com.

Imran Amed is Editor of The Business of Fashion.

CEO Talk is an ongoing series of discussions with fashion entrepreneurs and business leaders as they combat the economic downturn. Previous interviews are listed below:

• Natalie Massenet, Chairman and Founder, Net-a-Porter
• Camilla Skovgaard, Shoe designer and Entrepreneur
• Susan Lyne, Chief Executive Officer, Gilt Groupe
• Priya Kishore, Founder and Creative Director, Bombay Electric
• Alex Bolen, Chief Executive Officer, Oscar de la Renta
• Jeffrey Kapelman, Chief Executive Officer, Hilldun Corporation
• Bonnie Takhar, Chief Executive Officer and President, Halston
• Sara Ferrero, Chief Executive Officer, Joseph Group
• Paolo Fontanelli, Chief Executive Officer, Furla
• Stella Iishi, President and Founder, The News Inc.
• Greg Furman, Founder and Chairman, Luxury Marketing Council

LONDON, United Kingdom — London, of course, is widely known in the fashion world for its unbridled creativity and superb emerging fashion talent. But, increasingly, it could also be described as fashion’s Silicon Valley, with a growing number of innovative fashion ecommerce startups sprouting in the city, following in the footsteps of the ultimate luxury e-tailing pioneer, Net-a-Porter.com.

During my visit to Vienna for the 9 Festival for Fashion & Photography, I had the privilege of hosting a discussion amongst some of the newest fashion e-tailers on the London scene, bringing together Sarah Curran, CEO of my-wardrobe.com, José Neves, CEO of farfetch.com and Stephanie Phair, Director of theoutnet.com.

Thanks to our easy-to-use Flip Video Mino, we managed to capture some of the most poignant responses from our illustrious panel and are pleased to share them with you in the coming weeks. First up: How are your clients changing their shopping habits in the downturn?

RSS and email subscribers, click here to watch the video.

Zara S/S 09 ad campaign, courtesy of Zara

Inditex 1Q Net Pft Down 16%; May Trading Resilient (WSJ)
“Inditex SA (ITX.MC), Europe’s largest fashion retailer by revenue, Wednesday said its first quarter net profit fell 16 percent on a slump in consumer spending in Europe, but its stock rallied after it reported resilient clothing sales in May and the first week of June.”

Net-a-Porter demonstrates strength of business model as profits treble (FT)
“According to accounts filed with Companies House, the privately held London- based business increased sales by 47.8 per cent to £81.5m in the 12 months to January 31.”

Bulgari to issue 130 mln euro bond (Reuters)
“Bulgari SpA plans to issue a 130 million euro ($183.4 million) bond, the Italian jewellery maker said on Wednesday. The bond would have a coupon between 5.25 percent and 5.75 percent and mature in 2014, it said in a statement.”

China’s Luxury Goods Market May Escape the Worst (Seeking Alpha)
“As the effects of the economic crisis ripple across the global economy and demand for expensive products plummets, luxury brands face gloomy prospects in North America and Europe. Except in China which saw 15 percent retail sales growth in Q1, consumer spending is in sharp decline as consumers retrench, look for value in their purchases and cut back on non-necessities.”

Versace appoints new chief (FT)
“Gianni Versace has named Gian Giacomo Ferraris, the luxury goods veteran who has led Jil Sander since 2004, as its new chief executive.”

Stefano Pilati of YSL, courtesy of Wallpaper

Black is back at Yves Saint Laurent (Financial Times)
After ten years of losses, Yves Saint Laurent breaks even amid the current recession.

Net-a-Porter profits rocket (Drapers)
Due to improved margins, Net-a-Porter’s pre tax profits are up 300 percent to £9 million.

Wal-Mart’s Profits Attributable to Sad State of Economy (Seeking Alpha)
“Wal-Mart is one of the few stalwarts to actually expand business amidst today’s financial carnage and the glowing statistics are not to be mistaken for a grandiose harbinger of U.S. economic vitality.”

Christian Lacroix Heads Back to the Basics (WSJ)
As a response to the economic tumult, Lacroix pulled back on his signature exuberance.