For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
Sara Hudson, Pamela Brown, Leila Le Merle and Simona Kulakauskaitė (McKinsey & Company)
While luxury companies outperformed the MSCI World Index by 14 percentage points in the five years to October 2023, non-luxury has underperformed the same index by 3 percentage points.
Similarly, caution has been evident in the private realm with private equity investors, with deal volume largely stagnating over the last decade.
Fashion businesses wanting to attract investors will need solid performance fundamentals demonstrating sustainable profitability, clear brand equity and a path to value creation.
The eighth annual State of Fashion report by The Business of Fashion and McKinsey & Company reveals an industry navigating deep uncertainty. Download the full report to understand the 10 themes that will define the industry and the opportunities for growth in the year ahead.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.
Any fashion company that is contemplating going public needs to have not only the product and brand fundamentals right but also a business strategy that can easily be understood by the markets, writes Imran Amed.