Jun
 18
 2019



Ulrike

Hello,

Welcome back to The Spin! Although the market remains turbulent, we are seeing some calming influences. Chanel will remain private (for now), and Tom Tailor can continue to operate thanks to additional funds from lenders and banks. And while digitally native brands continue to experiment with physical retail, some brick-and-mortar retailers are enjoying great praise for their digital efforts. Enjoy the read and feel free to share! Best, Ulrike



brands

Coco would be charmed. With 10.5 percent comparable global sales growth to $11.1 billion in 2018, the value of French luxury fashion house Chanel is reaching stratospheric heights with estimates as high as €40 to €50 billion. But the privately-held company’s global chief financial officer Philippe Blondiaux strongly emphasizes (paywall) that Chanel is not on the market, neither for sale nor for an IPO.



Dolce's diversity. Italian luxury brand Dolce & Gabbana is making headlines for extending its size range to an Italian size 54, equivalent to a 22 in the UK and a size 18 in the US. Starting with the pre-fall 2019 collection, which just arrived in stores, the label also uses larger size women in its advertising campaigns. Customers seem to love it: Some of the largest sizes are already sold out in the company’s web shop.



Breathing room. The syndicate banks of Tom Tailor Holding SE have agreed to suspend (paywall; translated by Google) the repayment of a syndicated loan due on 30 June until mid-August and are granting the ailing German fashion company a new €30 million credit line to order goods. In addition, Tom Tailor will receive (in German) a short term loan of €18.5 million from majority shareholder Fosun. An agreement in principle on a bridge financing could be reached by mid-August.





people

Homeward bound. Claus-Dietrich Lahrs is relinquishing the CEO post at Bottega Veneta, with industry insiders speculating that the former Boss CEO will join (paywall; translated by Google) ailing German fashion company S.Oliver as CEO. Effective September 1, Kering promoted (press release) former Saint Laurent COO Bartolomeo Rongone to CEO at Bottega Veneta, where the 48-year-old will report to Kering’s chairman and CEO, François-Henri Pinault.





markets

Souping up the subways. New York City's Metropolitan Transportation Authority plans to revamp (paywall) underground retail spaces at three of the city’s busiest transit stations - the Port Authority Bus Terminal as well as the Rockefeller Center and Times Square subway stations - requesting proposals by interested vendors. At a total of about 1,500 m2, the spaces are set to become more upmarket with retail shops and cafes. Each station is frequented by upwards of 100,000 commuters per weekday.





tech

Digital dominance. Much is being said about digital brands entering the physical retail space, but the reverse movement is equally dramatic with US department store chains Macy’s and Nordstrom leading the Gartner L2 Digital IQ index, followed by Kohl's, LaRedoute and JC Penney on ranks five to seven (after Germany's mail order specialists Zalando and Otto). With exclusive assortments and personalized store experiences, those chains manage to stand out from their competition.





last

Mourning Gloria Vanderbilt... The iconic fashion designer, writer, artist and socialite passed on Monday morning at her home in New York. The cause of death was stomach cancer. In the fashion industry she was known for her textile designs, for which she received the Neiman Marcus Fashion Award in 1969, as well as the jeans label she launched in the 70s. In 2002 she sold the Gloria Vanderbilt Apparel Corp. to Jones Apparel Group for $138 million to focus again on art and writing. Gloria Vanderbilt was 95 years old.



...and Herbert Frey. The former CEO of German fashion company Lodenfrey died (press release, in German) on June 10 at the age of 91. From 1950 to the beginning of the 1990s, Frey managed the family business and was honored with several awards including the Bavarian Order of Merit for extraordinary services to the Bavarian economy and the Grand Cross of Merit of the Federal Republic of Germany. Frey also served (paywall; translated by Google) as President and Honorary President of the Association of the Bavarian Textile and Garment Industry.







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