Joe Fresh Autumn/Winter 2011 | Source: Mens Models Talk

New wave of Canadian fashion brands is looking to build a worldwide presence (FT)
“Canada has many assets – commodities, natural resources, space, poutines – but most people would not count fashion among them… Yes, the Canadians are coming. And no, it’s not all lumberjack shirts and ice hockey jerseys. Their arrival marks a sense of maturity for retailers on both sides of the border.”

France and Italy: ‘Ready-to-War’? (NY Times)
“Against all the odds of the flailing euro, mountains of sovereign and personal debt and a general economic uneasiness, men’s wear is booming. As Ermenegildo Zegna opens the Milan winter 2012 men’s season on Saturday, the company has recorded a 14 percent increase in sales in 2011, pushing total revenues to €1.1 billion, or $1.4 billion.”

Italian Luxury Clothiers Say Euro Crisis Won’t Stop 2012 Growth (Bloomberg)
“Ermenegildo Zegna and Raffaele Caruso are among Italian luxury goods makers that say they are optimistic for 2012 even as Europe’s sovereign-debt crisis weighs on demand in the region and growth slows in Asia.”

Richemont Third-Quarter Sales Rise on Increased Asian Demand (Bloomberg)
“Richemont, the world’s second-largest luxury-goods maker, reported 24 percent growth in third-quarter revenue, boosted by sales of Vacheron Constantin timepieces and Cartier jewelry in Asia. Revenue rose to 2.62 billion euros ($3.31 billion) in the three months through December from 2.12 billion euros a year earlier, the Geneva-based company said today in a statement.”

Prada Displays Its Star Power (IHT)
“It was a red carpet, and it had to be, given the stellar lineup on Prada’s runway Sunday: From Adrien Brody in a rich red coat to Gary Oldman in a spiffy black morning coat, and the rest of a star-studded cast… What the designer seemed to be saying, after her dynamic but simplistic racing car theme for her last women’s collection, was that if men like cars, they like power, with all the trappings of formal tailoring and linear coats even more.”

Salvatore Ferragamo store Huhehaote China | Source: Moda Online

Luxury brands turn cautious on China (FT) 
“Watching three malls open within a square mile over the past year and a fourth preparing to follow, all with their share of luxury boutiques, Beijingers may think that soon their city will have as many Louis Vuitton and Salvatore Ferragamo stores as bank branches or McDonalds restaurants. But things might be on the verge of changing.”

Prada Poised to Extend Slump as China Shoppers Cut Back (Bloomberg)
“Prada is falling out of fashion six months into its Hong Kong trading debut as investors brace for Chinese shoppers to curb spending. Shares of the maker of $2,000 bags and Miu Miu shoes, which gets more than 42 percent of sales from Asia, have dropped 34 percent from its July peak.”

Paris Reignites Brouhaha Over Fashion Schedule (The Cut)
“After Milan, London, and New York finally compromised on their respective Fashion Week dates for 2013 and 2014, France’s Chambre Syndicale — which has been relatively quiet on the matter until now — announced that they’re unhappy with the proposed arrangement.”

H&M Nov comparable sales lag consensus (Reuters)
“Sweden’s Hennes & Mauritz, the world’s second-biggest apparel retailer, posted on Thursday a one percent drop in local-currency turnover at established stores in November, missing a consensus forecast for a narrow rise.”

Building an Empire of Her Own (NY Times)
“It’s a distinctive pedigree, all right, lofty enough to have secured the younger Ms. Roitfeld a flurry of modeling gigs, invitations to the coolest parties and the fawning attention of scores of bloggers. But not lofty enough, evidently, for Ms. Roitfeld herself. ‘I want to be known as me,’ she insisted the other evening… ‘I want to be known for what I can do on my own.’”

Savigny Luxury Index November 2011 | Source: Savigny Partners

LONDON, United Kingdom — As the luxury and fashion sector enters the critical holiday shopping period on the back of strong results for the first half of the year, there are growing signs that executives are worried about what the future holds for the luxury market in 2012.

Big news

• This has been another month of record results for the luxury sector, with Hermès, Richemont, Ferragamo, Burberry, Tiffany, Prada and Ports all posting outstanding numbers for their first half or third quarter period.  Buoyant growth in Asia continued to lift sales; Richemont in particular shone with revenues in the region soaring by 60 percent in its first half report.  Growth was also present in mature markets, notably in the USA where Burberry’s first half sales and Tiffany’s third quarter revenues rose by 25 percent and 17 percent respectively.  This was confirmed by recent news of a very strong Thanksgiving weekend, with US retail sales estimated at a record $52.4 billion.

• Yet worries are growing over 2012.  The global markets rebound which took place towards the end of November following news of concerted action to solve the eurozone debt crisis did not happen for the luxury sector, with our Savigny Luxury Index resuming its downward slide.  Some market participants have issued thinly veiled warnings over next year, notably Richemont and Tiffany (see below).  Retailers are keeping inventories low into the end-of-year season; we have heard reports of some of them asking leading fashion brands not to deliver too early, a shocking role-reversal mode.  Industry CEOs are hoping for the best but quietly making contingency plans.  Overall, the SLI has lost 4.9 percent over the month of November, compared to an increase of 1.8 percent in the MSCI general index.

• The long-rumoured acquisition of Italian tailor Brioni by PPR finally crystallised, evidencing the importance of the menswear segment for the sector’s growth expectations, especially in China.

… Continue Reading

Michael Kors | Source: Life

Michael Kors Seeks to Raise $792.3 Million in U.S. IPO (Bloomberg)
“Michael Kors Holdings Ltd., the luxury-clothing company, is seeking to raise as much as $792.3 million in a U.S. initial public offering as the company’s founder and the biggest investor trim their stakes… Michael Kors, the designer who founded the company in 1981, is planning to cut his stake as retailers of luxury goods outperform mid-priced department stores and discounters this year.”

Gucci sales not slowing yet, has plan B ready (Reuters)
“Luxury brand Gucci has not seen any impact on its business from global economic woes but it would be prepared to react quickly and cut costs if sales slowed, its chief executive said in a newspaper interview. Patrizio di Marco told Le Figaro that Gucci, part of French luxury and retail group PPR, had a ‘Plan B’ that could see it delaying store improvement work while sticking to its store opening programme.”

U.S. retailers tailor fashions to Asian tastes (LA Times)
“As the U.S. market continues to sputter and China’s continues to boom, U.S. retailers are updating business plans to include the world’s second-largest economy as well as the rest of growing Asia. Just as Louis Vuitton, Gucci and Apple have erected temples of capitalism in cities such as Shanghai and Beijing, Western apparel makers are infusing their clothing lines with Asian sensibilities in look, feel and size.”

Future Classic (WSJ)
“At the house of Roger Vivier, the buckle reigns supreme… The buckle, which has adorned Vivier shoes and handbags for more than four decades, is a signature that you recognize without realizing that you have… But Bruno Frisoni, the dashing, bespectacled and asparagus-slim Frenchman who is artistic director of the label, has quietly been masterminding another house signature: the Prismick.”

A glint in his tie (FT)
“‘Clothes maketh the man,’ goes the cliché: but what exactly do they maketh of him? What, for example, to make of the landslide of lads in spangly sweaters at the autumn/winter Prada show?… For many men the latter might seem the most likely answer, except for the fact that those metallic sweaters are currently hitting shop floors and selling out.”

Dior Couture by Patrick Demarchelier | Source: Mama's Rolling Stone

Opening the Doors of Dior (NY Times)
“Saint Laurent, Chanel, Dior: the names of the most famous Paris houses sort of dance off the tongue. Their histories defeat the idea that younger generations might be bored with old things. And a stream of books and films helps to assure that they won’t be. “Dior Couture” (Rizzoli), by the photographer Patrick Demarchelier, is far and away the most gorgeous book on the house…What Mr. Demarchelier offers is a personal view of fashion from a great Paris house.”

Prada profit surges 75% in third quarter on Asia sales (BBC News)
“Profits at Italian fashion house Prada soared in the third quarter boosted by increased sales in the Asia-Pacific region. Prada said it made a net profit of 273m euros ($364m; £234m) in the three months to the end of October, a 75% jump from year earlier.”

Tiffany sales growth shows signs of slowing (Reuters)
“Concerns about slowing sales momentum took some of the luster off Tiffany & Co’s stock amid signs that European and U.S. economic distress are weighing on luxury consumers, and shares fell 9 percent. The upscale jeweler, a stock market darling for how fast its international business has grown, reported third-quarter.”

Hall of Fame: Patricia Field (WWD)
“Patricia Field has always done things her way. With a career spanning 45 years and counting, the designer, stylist and boutique owner built her reputation by creating her own blueprint. ‘If you asked me who I looked up to from the beginning of my career, I would say no one,’ Field said. ‘I didn’t see fashion that way. I felt fashion.’”

Rise: Sean McGirr (Dazed Digital)
“It’s no coincidence that Candy Nippon in Tokyo and Immense in Taipei – two of Japan’s most closely watched boutiques – have Sean McGirr’s A/W 2011 collection hanging from the clothes hangers. Titled ‘The Adolescent Years’, it draws from the Oriental kimono silhouette and shares a sensibility with Japanese fashion that gives it an uncanny autonomy.”