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.
Burberry is paying €21 million to acquire a business unit from longstanding supplier Pattern, allowing the company to bring product development for technical outerwear in-house. The deal is expected to close later this year.
As part of the deal, the British heritage brand will gain employees, equipment and inventory to boost control of “quality, delivery, and sustainability” for products including quilted and down pieces. Burberry’s signature trench coats will continue to be woven and manufactured in its Yorkshire manufacturing sites, the brand said in a statement.
The move comes as Burberry seeks to make outdoor outerwear a focus in the brand’s product offer under new designer Daniel Lee. “This strategic investment is an important next step in bringing our outerwear category to full potential,” chief executive Jonathan Akeroyd said.
About 70 of Pattern’s employees at the Turin site will join Burberry on completion of the deal. Pattern will continue to operate the other parts of its business not included in the transaction.
ADVERTISEMENT
Learn more:
Inside Burberry’s Growth Strategy
In an interview with BoF the day of his first major speech to investors, Burberry’s new CEO Jonathan Akeroyd outlined his plan for growing the British house into a £5 billion megabrand alongside designer Daniel Lee.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.