The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The singer-turned-entrepreneur’s inclusive lingerie brand has hired Goldman Sachs to spearhead the raise, sources told The New York Times’ Dealbook. The funds could be used to expand into Europe and break into new categories like activewear.
The brand has been riding a wave of momentum amid a broader shakeup in the lingerie sector that has hurt long-time market leader Victoria’s Secret and opened up opportunities for newer players. Savage x Fenty was expected to hit $150 million in revenue last year, but is not yet profitable according to Dealbook.
Savage x Fenty was launched in 2018 as a joint venture between Rihanna and Techstyle Fashion Group, which also counts Kate Hudson’s Fabletics within its portfolio. To date the company has raised $70 million from backers including Jay-Z’s venture firm and Avenir Growth Capital.
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.
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.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
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.