Mammut names Hugo Boss COO Heiko Schaefer as new CEO

Image: Heiko Schaefer via Mammut Swiss outdoor brand Mammut has tapped Hugo Boss chief operating officer Heiko Schaefer as its new CEO, effective September 1. The Seon-headquartered company said Schäfer will focus on “strengthening the iconic Mammut mountain brand and accelerating its growth on a global level”. Schaefer held the COO position at upmarket German label Hugo Boss from March 2020, and served as CEO of Tom Tailor Group from 2016 to 2019. Earlier in his career, he spent six years at sportswear giant Adidas, most recently serving as senior vice president of operations at the company’s Sports Style division. “I am extremely excited to return to the sporting goods world, joining the most iconic outdoor brand in Europe,” Schaefer said. “I look forward to devoting my energy and passion to unlocking Mammut’s full potential with its team - making the brand even more desirable and accessible to mountain sports enthusiasts.” The news comes after Mammut announced in September 2021 that Oliver Pabst would be stepping down from the helm of the company following the successful completion of the change of ownership of business from Conzzeta to Telemos Capital. Greg Nieuwenhuys, who has headed Mammut as interim executive chairman since September, will continue to work closely with Schaefer and Mammut as chairman of the board. Nieuwenhuys said: “Over the past months, we have prepared Mammut for its next phase of growth. I am proud of the passion demonstrated by Mammut colleagues around the globe and excited to announce Heiko as CEO. I look forward to the collaboration and reaching greater summits together.”
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5 Most popular strategies brands are using to enter the metaverse

Image: Metaverse Fashion Week 2022, Decentraland While the digital world isn’t necessarily a new concept, the fashion industry’s presence within it has been rapidly increasing over recent years, with 2022 in particular proving to be a year that has so far been full to the brim of digital integration and metaverse activations. A new report by Fashionbi has explored the various ways brands are making use of this continuously developing virtual space, through different strategies that hope to appeal to their customer group in new and exciting ways. Via Fashionbi’s report, FashionUnited has highlighted the most popular methods brands have been adopting when entering the metaverse and why these particular strategies are so attractive. NFT enthusiasm A non-fungible token (NFT), like cryptocurrency, exists in the blockchain ecosystem, however only one of its kind exists and it can hold extra information in comparison to the digital currency. Owning an NFT, which can be anything from art and software to virtual assets like fashion objects, provides the holder with exclusive ownership to that asset. It is this element that has made the NFT so popular in the luxury industry, offering buyers a unique experience that is somewhat difficult to attain. While brands hopping onto the NFT bandwagon can benefit from a new revenue stream, buyers also gain a lot of extra perks from owning this new artwork, for example the ability to integrate it into online games or unlocking experiences. In Fashionbi’s report, the organisation listed the top selling NFTs so far, many of which have been sold through an auction and then resold via NFT marketplaces. Dolce & Gabbana topped the list with its The Doge Crown NFT. The artwork, which initially went up for auction, resold for over 1.2 million dollars. Other big sellers included Gucci’s Supergucci collection, which have appeared in resale for around 83,000 dollars, and Givenchy’s collaboration NFTs with Chito, which have peaked at 13,000 dollars. Image: Kollectiff Popular gaming platforms and virtual worlds Virtual worlds provide users with many benefits alongside either exploring, playing games or socialising with friends. The likes of Fortnite or Zepeto have already attracted a large number of brands looking to dip their toes into digital merchandising and explore what possibilities there are within online gaming, whether that be online retail spaces or other digital asset launches. While Nintendo’s Animal Crossing was a hit for both players and retailers alike during the pandemic, it is Roblox that has particularly risen in the ranks, partnering with the likes of Gucci, Tommy Hilfiger and, most recently, Clarks on digital fashion drops, in-game experiences and branded gaming offers. Similarly, 3D virtual space Decentraland has also made a distinct mark in the fashion industry with the launch of Metaverse Fashion Week back in March. The digital event saw brands and retailers like DKNY, Selfridges and Etro take to the metaverse for the first time. Image: Decentraland, Tommy Hilfiger Metaverse investments Acquisitions and investments in digital companies have also been a prominent part of the development of metaverse brand activations. Nike, for example, acquired virtual sneakers company Rtfkt back in December 2021 following the launch of its virtual experience in Roblox, which has since seen almost seven million visitors. Diesel is another to take on digitally-centred platforms, launching its own virtual platform D:verse in March 2022. The site allows visitors to purchase unique NFT versions of the brand’s clothing, as well as physical pieces. Luxury conglomerate LVMH has been an avid investor in digital start-ups and firms as part of its annual Innovation Award, presented during the Viva Technology conference. This year’s edition of the award consists of a shortlist of 21 start-ups covering everything from 3D product experience and metaverse companies to omnichannel and retail specialists. Virtual fashion shows Beginning in 2020, when the world was faced with strict lockdowns, many brands took to the virtual world in order to continue showing collections and connecting with their customers. GCDS led the way with the opening of a virtual fashion arcade and runway show, which was followed by The Fabric of Reality, produced by RYOT. This year, however, virtual reality (VR) runway shows have become more evident, with shows held via the likes of VR platform Second Life, headed by Jonathan Simkhai, and Crypto Fashion Week, which launched numerous NFT drops and panel discussions. Not only have there been a cohort of digitally driven fashion shows, but physical fashion shows have also begun implementing metaverse activations into their line ups. Paris Fashion Week for the spring/summer 2022 season, for example, integrated NFTs into its offering, provided to accredited guests so they could access exclusive content and augmented reality (AR) experiences. Additionally, during London Fashion Week in February 2022, Roksanda partnered with the organisation on the release of an NFT version of the brand’s finale look, which was launched in limited edition bundles that allowed buyers to virtually try-on the look. Image: Perry Ellis America, Decentraland Online-in-store experiences Alongside virtual runways and digital artworks, many brands have also been testing the waters of AR retail experiences. Often located in the aforementioned virtual worlds, these new retail locations allow gamers to browse branded products, purchase them and don them on their personal avatars, bringing to life a brand’s merchandise in the digital realm. Selfridges was a notable adoptee of this strategy, with the launch of its own VR department store in Decentraland. The immersive experience, which bore a resemblance to the retailer’s Birmingham store, hosted various art exhibitions and in-store activations by the likes of Paco Rabanne. Promotion Want to read more about Fashionbi’s metaverse report? See the full publication here.
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Tom Ford steps down from role as CFDA chairman

Image: CFDA, Tom Ford The Council of Fashion Designers of America (CFDA) has announced that Tom Ford will be stepping down from his place as chairman of the organisation on May 31. Ford has served as chairman of the CFDA since June 2019. The organisation’s CEO Steven Kolb will take over the role of interim chair throughout the rest of the year. In January, the organisation will vote for a new chairperson to succeed Ford. In a release, the American designer said in a statement: “When I began my role as chairman in June of 2019, my goal was to help the American fashion industry become more globally recognised for its talent and importance.” He went on to emphasise the extraordinary circumstances faced throughout the pandemic and how the industry overcame the difficulties through a new way of working. In his three years as chairman, Ford initiated a number of initiatives through the CFDA, many of which focused on diversification and inclusion. He also led the A Common Thread initiative with Vogue, distributing over five million dollars in relief aid to fashion brands during the pandemic. “As chairman of the CFDA, I have had the privilege to experience first-hand the remarkable determination and optimism that drives our industry,” Ford added. “I am honoured to have been able to support the truly incredible talent in the American fashion industry for these past three years, and I look forward to continuing in my role on the CFDA Board.” Additionally, the CFDA announced that the board unanimously elected Tory Burch, Thom Browne and Aurora James to the board, effective June 1.
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Eco-friendly sneaker start-up, Psudo, raises three million dollars in seed funding

Image: Psudo US sneaker brand Psudo has announced the completion of a three million dollar seed financing round, led by SternAegis Ventures. The sustainable start-up, which utilises Repreve yarn for its sneakers, will use the funding to develop plans to establish a new standard for sustainable manufacturing that will allow shoes to be created on demand. Additionally, the financing will support the company’s wholesale, supply chain and omnichannel marketing, allowing it to scale its product pipeline and distribution channels. Founded in 2020 by husband and wife duo Michael and Kortney Rich, the LA-based label is ultimately aiming to create the world’s most eco-friendly sneaker by 2023, looking to alleviate the pressure on waste management and reuse single-use plastic bottles. “Creating a lifestyle sneaker company with a mission and values that people can believe in is the dream,” said Michael RIch, CEO of Psudo, in a release. Rich continued: “I’ve spent decades in the shoe-making business, from design and engineering to manufacturing and distribution, and sneakers are among the toughest items to produce locally and sustainably. We’ve taken our industry knowledge and experience and created Psudo with the goal to reinvent and innovate the sneaker industry.” Currently, Psudo sneakers typically take eight weeks from concept to execution, with two silhouettes for men and three for women, all of which are 100 percent made in the US.
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Pantone partners with Spatial Labs on wearable metaverse technology

Image: Pantone x Spatial Labs, Auras Colour authority company Pantone has revealed a new partnership with Spatial Labs (sLABS) with the launch of a wearable hardware product that looks to standardise colours in the metaverse. Coined by sLABS as ‘the wearable internet’ and entitled LNQ, the device hopes to enhance user experience in Web3. Founded by Iddris Sandu, the technology has also been backed by investment firm Marcy Venture Partners, which is co-founded by Shawn Carter (Jay-Z), Jay Brown and Larry Marcus. “We recognised a gap in the Web3 industry and took this as an opportunity to develop hardware that would equip users and creatives with the tools they need to create, engage, and share with their communities while bridging the physical and digital worlds like never before,” said Sandu, in a release. The technology will be unveiled during an official launch event at NeueHouse in Los Angeles this weekend, and will stand alongside its official partners which include music streaming service Tidal and Web3 platform Polygon. During the event, visitors will be able to try Pantone’s SkinTone Guide through LNQ, which allows users to develop their own metaverse characters, known as Auras. Alongside the partnership, Pantone and sLABS also collaborated on a collection of six colours reflecting the brand’s identity, with hues inspired by nature and designed to evoke optimism. “Ultimately, the goal was to curate a selection of colours that could serve as physical touchpoints in a virtual world; colours that could live comfortably in a commercial fashion environment while still retaining a curated element and approach,” noted vice president of Pantone Color Insitute, Laurie Pressman. “Finding colours whose universal appeal could work and blur across gender norms and rules was critical, as was the desire for these colours to display a timeless and ageless quality.” Pantone ad sLABS also revealed that they will be working together on a limited-edition clothing release, with more details to be announced at a later date.
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VF's Q4 sales increase 9 percent, earning jump

Image: Gucci x The North Face VF Corporation’s fourth quarter revenue of 2.8 billion dollars, rose 9 percent or 12 percent in constant dollars. Earnings per share of 21 cents, increased 32 percent; while adjusted EPS of 45 cents, was up 67 percent. Full year revenue of 11.8 billion dollars, increased 28 percent or 27 percent in constant dollars. Excluding acquisitions, revenue was up 23 percent. EPS was 3.10 dollars, up 242 percent; and adjusted EPS jumped 143 percent to 3.18 dollars, including a 19 cents per share contribution from acquisitions. Commenting on the company’s trading results, Steve Rendle, chairman, president and CEO of VF, said: "We largely delivered on the commitments we made at the outset of Fiscal 2022 by achieving broad-based growth across our family of brands. A portion of our active segment did not achieve its potential. We understand the issues, we have the right people in place and we know we will do better.” Review of VF’s Q4 financial performance The North Face revenue of 0.8 billion dollars, was up 24 percent or 26 percent in constant dollars, and Vans revenue of 1 billion dollars remained flat or was up 2 percent in constant dollars. Gross margin of 51.9 percent, declined 20 basis points; while adjusted gross margin of 52.2 percent, was down 50 basis points Operating margin was 6.8 percent, up 210 basis points; and adjusted operating margin was 7.9 percent, up 120 basis points. FY22 financial highlights of VF’s results Gross margin of 54.5 percent, was up 180 basis points; while adjusted gross margin of 54.8 percent, was up 150 basis points, including a 20 basis point positive impact from acquisitions. Operating margin of 13.8 percent, was up 720 basis points; and adjusted operating margin of 13.1 percent, was up 510 basis points, including a 30 basis point positive impact from acquisitions. For full year fiscal 2023, VF expects revenue to increase at least 7 percent in constant dollars, The North Face revenue to be up low double digit percent; Vans revenue to be up mid-single digit percent, gross margin to increase approximately 50 basis points, operating margin of approximately 13.6 percent and EPS of 3.30 dollars to 3.40 dollars. VF’s board of directors has declared a quarterly dividend of 50 cents per share, payable on June 21, 2022, to shareholders of record on June 10, 2022.
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Ross Stores Q1 sales and earnings decline

Image: Ross Stores Ross Stores, Inc. reported earnings per share of 97 cents on net earnings of 338 million dollars for the first quarter compared to 1.34 dollars per share on net income of 476 million dollars for the 13 weeks ended May 1, 2021. Sales for the quarter were 4.3 billion dollars versus 4.5 billion dollars in the prior year period, while comparable store sales declined 7 percent. Commenting on the trading performance, Barbara Rentler, the company’s chief executive officer, said in a statement: “We are disappointed with our lower-than-expected first quarter results. Following a stronger-than-planned start early in the period, sales underperformed over the balance of the quarter.” Looking ahead, Rentler added: “Given our first quarter results and today’s increasingly uncertain macroeconomic and geopolitical environment, we are now forecasting same store sales for the 13 weeks ending July 30, 2022 to decrease 4 percent to 6 percent, with earnings per share projected to be 99 cents to 1.07 dollars versus 1.39 dollars in last year’s second quarter.” She further said: “Although we continue to expect sales and profitability to improve as we move through the year, for the 52 weeks ending January 28, 2023, we now forecast comparable store sales to decline 2 percent to 4 percent versus a 13 percent gain in fiscal 2021. Earnings per share for fiscal 2022 are projected to be 4.34 dollars to 4.58 dollars compared to 4.87 dollars in the prior year.”
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Deckers Brands reports increase in Q4 net sales and earnings

Image: Patrick Chaves for Hoka One One Deckers Brands reported net sales increase of 31.2 percent to 736 million dollars for the fourth quarter. On a constant currency basis, net sales increased 31.7 percent. The company’s full year net sales increased 23.8 percent to 3.150 billion dollars, while on a constant currency basis, net sales increased 23.2 percent.. "Fiscal year 2022 was another record year for Deckers, as we delivered both revenue and earnings per share growth above twenty percent," said Dave Powers, the company’s president and chief executive officer. Highlights of Deckers Brands Q4 performance The company’s wholesale net sales increased 37.6 percent to 448.8 million dollars in the fourth quarter. Direct-to-consumer (DTC) net sales increased 22.2 percent to 287.2 million dollars, while comparable DTC net sales increased 19.3 percent. Domestic net sales increased 37.4 percent to 521 million dollars and international net sales increased 18.2 percent to 215.1 million dollars compared. Gross margin for the quarter was 48.7 percent compared to 53.2 percent and diluted earnings per share were 2.51 dollars compared to 1.18 dollars. The company’s UGG brand net sales increased 24.7 percent to 374.6 million dollars, Hoka brand net sales increased 59.7 percent to 283.5 million dollars, Teva brand net sales decreased 8.8 percent to 54.8 million dollars, Sanuk brand net sales decreased 1.7 percent to 11.9 million dollars and other brands, primarily composed of Koolaburra net sales increased 2.4 percent to 11.2 million dollars. Full year financial review of Deckers Brands results Full year wholesale net sales increased 31 percent to 1.937 billion dollars and DTC net sales increased 13.8 percent to 1.214 billion dollars. Domestic net sales for the year increased 23.1 percent to 2.168 billion dollars and international net sales increased 25.3 percent to 982.5 million dollars. Gross margin was 51 percent compared to 54 percent, while diluted earnings per share were 16.26 dollars compared to 13.47 dollars. UGG brand net sales increased 15.4 percent to 1.982 billion dollars, Hoka brand net sales increased 56.1 percent to 891.6 million dollars, Teva brand net sales increased 17.3 percent to 162.7 million dollars, Sanuk brand net sales increased 3 percent to 43.1 million dollars and other brands net sales decreased 7.5 percent to 70.9 million dollars. For the fiscal year 2023, the company said, net sales are expected to be in the range of 3.45 billion dollars to 3.50 billion dollars, gross margin is expected to be approximately 51.5 percent, operating margin to be in the range of 17.5 percent to 18 percent and diluted earnings per share in the range of 17.40 dollars to 18.25 dollars.
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US boutique marketplace Jane appoints new CTO

Image: Jane.com Jane, a boutique marketplace selling women’s and children’s fashion along with accessories and home decor, has appointed David John Smith as its new chief technology officer. Smith will be tasked with helping to transform the US business from a three-day flash deal marketplace to a model where sellers can offer products indefinitely. He will focus on building a platform to support the more than 2,000 small businesses that sell on Jane, many of which are women and minority-owned. Smith has almost 20 years of leadership experience. He most recently served as CTO with resale website Fashionphile. Earlier in his career, he was vice president of technology at Nordstrom, and led global teams at TechStyle Fashion Group. “I’m thrilled to be tapped as Jane’s CTO and honored to lead such a highly-talented group of engineers, product managers, and designers,” Smith said in a statement. “I’m incredibly excited about supporting the transformation of Jane’s business model away from a three-day deal site and offering an even-greater curated experience of evergreen listings.” Joana McKenna, who was announced as Jane’s new CEO back in March, said: “As we prepare for our next stage of growth at Jane, we are delighted to welcome David to our executive team. “David’s extensive experience leading technology and engineering teams in the e-commerce and fashion space, make him ideally suited to lead Jane’s technology transformation into a full-fledged third-party marketplace.”
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Childrenswear brand Frugi partners with Circular Textiles Foundation

Image: Frugi Frugi, a sustainable UK-based brand, has announced a new partnership with the Circular Textiles Foundation (CTF), making it the organisation’s first childrenswear member. The brand will be following a series of circular design workshops with the foundation, working towards key circular principles to apply throughout the company and ultimately creating a range of fully recyclable clothing for spring/summer 2023. The CTF certification mark will be present on 22 percent of Frugi’s SS23 collection, with the label’s end goal being to establish the mark on its entire future collections. The certification tells consumers that the garment has been made to be recycled by a specific facility, which will then process it into new fabric, with more information on the activation available via a QR code on the garment’s tag. Its key aim of partnering with the CTF, Frugi said in a release, is to prevent clothing going into landfill or incineration, falling in line with its ‘end of life’ plan for its garments. “Sustainability is at the heart of the Frugi brand,” said Sarah Clark, CEO of Frugi Group. “Our clothes are already designed to grow with children, using reversible prints, interactive appliques, and clothes with extendable cuffs, waistbands, and shoulder straps.” Clark continued: “Our commitment to eliminating waste is further strengthened by our partnership with the Circular Textile Foundation, especially as the first childrenswear brand to do so. We can’t wait to launch our spring/summer ‘23 range with the new certification and to show that we are serious about making a genuinely circular product, and to protect the planet we play on.”
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Manchester-based luxury retailer Hervia bought by investment firm

Image: Rami Cassis (left) and Oscar Pinto-Hervia Luxury fashion retailer Hervia has been acquired by Rami Cassis, the founder of investment firm Parabellum Investments. Cassis said he plans to take Hervia into its next phase of expansion by exploring new segments such as childrenswear, and launching new partnerships with emerging designers in the UK, France, and Italy. He also plans to bolster the retailer’s customer experience by investing in its online platform. Cassis said in a statement: “I’ve always had a strong interest in fashion, so this is a great opportunity to pair my business expertise with a personal passion. “Hervia has a rich legacy as a brand and strong foundations as a business, and our ambitious plans are based on driving future organic growth as well as exploring new acquisitions for Hervia.” Hervia was founded in Manchester in 1993 by Oscar Pinto-Hervia, who will stay on as CEO following the deal and will retain a stake in the business. As well as its online store, Hervia has a brick-and-mortar flagship in Manchester called Hervia Bazaar. The company sells apparel, jewellery and accessories from designers including Raf Simons, Maison Margiela, Rick Owens, and Yohji Yamamoto. Alongside Hervia’s flagship store and online platform, the deal also includes the operation of the Adidas Y-3 flagship store in Mayfair, London. Hervia founder Pinto-Hervia commented: “It’s an exciting time for Hervia as we look to onboard fresh, new brands and open additional stores.” “I was struck by [Cassis’] enthusiasm and his growth plans for Hervia align with our ambitious vision for the company. His strong track record of leading and managing companies ensures he’s a great fit to take us forward into the next phase of expansion.”
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Report: Resale market to more than double by 2026, US to lead the charge

Image: ThredUp distribution center The global fashion resale market is expected to grow 127 percent by 2026, three times faster than the broader retail clothing sector, according to a new report. That growth will be fueled by the US, where the second-hand market is expected to more than double to 82 billion dollars by 2026 - 16 times faster than the broader retail fashion market. The US resale market recorded record growth in 2021, up 32 percent. That’s according to a new study by resale platform ThredUp, conducted by third-party retail analytics firm GlobalData. It comes as the ‘pre-loved’ fashion market continues to go from strength to strength, fueled by growing consumer and investor demand for more sustainable apparel alternatives. The younger generation remains the most open to buying pre-loved fashion, with 62 percent of Gen Z and Millennials saying they look for an item second-hand before purchasing a new one. The study also found that 58 percent of consumers say second-hand shopping has helped them in some way during a time of inflation. Meanwhile, 25 percent say they will consider buying more second-hand items if prices in apparel, footwear, and accessories continue to go up. The rise of resale marketplaces Another reason why people are buying more second-hand clothes is thanks to online marketplaces, with 70 percent of respondents saying it is easier now to shop for pre-loved products than it was five years ago. In fact, online resale is the fastest sector of second-hand and is expected to grow by nearly four times by 2026. “The last 10 years of resale were dominated by marketplaces, but brands and retailers are driving the next wave of second-hand,” said ThredUp co-founder and CEO James Reinhart. High street retailers and storied fashion houses alike have stepped into resale in recent years. In the last few months alone, Hugo Boss, Ganni, Marks & Spencer, Lululemon, and Pacsun have all announced either the launch or expansion of their resale offerings. ThredUp’s report found that 52 percent of retail executives say offering resale is becoming a ‘must’ for retailers, while 88 percent of retail executives who currently offer resale say it’s helping drive revenue. Reinhart continued: “We’re still in the very beginning of this trend, but the acceleration of resale adoption is a positive signal with enormous benefits for the planet.”
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European fashion textile exports saw encouraging growth in 2021

Image: Euratex website European exports of textile and clothing items increased by 10.6 percent to 58 billion euros in 2021, according to new data published by Euratex, the European Apparel and Textile Confederation which represents the interests of the European textile and clothing industry at the level of the EU institutions. Imports decreased by 7.5 percent to 106 billion euros. Purchases of textiles and clothing from China decreased by 28 percent in 2021 but overall textile activity fully recovered from the strong contraction in 2020, with sales of clothing returning to pre-pandemic levels. Dirk Vantyghem, Director General Euratex, said in the report: "2021 export figures confirm that Euratex members have gained momentum. Even if energy prices are causing serious disturbances in the short term, our long-term ambition remains to be a world leader in the sustainable textile sector.” Euratex also strongly condemned the war in Ukraine, which has seen the Ukrainian textile industry greatly suffer. “Ukraine offers valuable sourcing opportunities for European textile and apparel brands as part of a broader nearshoring trend that appears to emerge from the trade data,” the report said.
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Burberry’s move to cut discounting may not pay immediate dividends

Opinion Image: Burberry Discounting is the bain of most luxury brands, which is why many companies have increased their focus on direct to consumer sales while simultaneously reducing wholesale partners. Burberry is one of those brands, like Ralph Lauren - which it aimed to emulate under Rose Marie Bravo's leadership - where there was always ample product available at outlets and at discounted prices from various vendors and licensee holders. Prestige brands operate a tight pricing module, and Burberry, under new CEO Jonathan Akeroyd, is keen to steer away from markdowns and be regarded in the same esteem as Louis Vuitton, Hermes and Versace, the latter the brand he left to return to the U.K. Focusing on exclusivity, this strategy may well work if the markets where Burberry can achieve these margins are aligned. China, a path to growth China has been Burberry’s path to growth, however the second quarter of 2022 has seen the country’s key urban areas in lockdown, affecting the bottom line of most luxury brands. Despite China's announcement that from June it will ease restrictiosn to facilitate a gradual re-opening of Shanghai, China's premier luxury shopping destination, the impact of an economic slowdown has ricocheted across the luxury sector. Gemma Boothroyd, Freetrade analyst, commented to FashionUnited: “Akeroyd’s ability to hit the ground running heavily depends on demand from the Chinese market. Today’s results show the demand is there, the problem is, China’s Covid policies are out of his control.” “With some Shanghai residents now in their sixth week of lockdown, spending in the luxury hub is inevitably muted. That means Burberry’s cut off, and it’s feeling the heat, with March sales taking a tumble.” A digital pioneer in the luxury sector It is too early to comment on Akeroyd’s gameplan, having taken over the role only in April this year. Burberry under Marco Gobbetti made great leaps in technology, prioritising digital innovation to be a digital pioneer amongst other luxury brands. But even as it accelerated digital growth and drove traffic to its own e-commerce channels during Covid-19, overall growth in 2021 was less than other luxury companies at just 21 percent from 2020 to 2021. After all the lockdowns and restrictions, this was only a modest increase. Boothroyd says China is a long-term investment for Burberry, and that the current situation of restrictions are “short-term hurdles. Akeroyd’s overarching goal is to reposition the brand, redefining its reputation.” Let’s see how that transformation takes shape.
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N Brown posts growth across strategic brands

Image: Jacamo, N Brown media gallery N Brown Group revenue declined 1.8 percent to 715.7 million pounds for the year to February 26, 2022, as a result of a 0.6 percent decline in total product revenue and a 4 percent decline in financial services revenue. However, adjusted pre-tax profit of 43.1 million pounds was up 46.6 percent from the previous year’s 29.4 million pounds and revenues across its strategic brands JD Williams, Simply Be, Jacamo grew by 10 percent. Commenting on the company’s full year results, Steve Johnson, chief executive of N Brown, said: “Our strategic brands returned to growth in the year with growing customer numbers. We remain confident that over the medium-term our strategy will support the delivery of 7 percent product revenue growth with a 13 percent EBITDA margin." Review of N Brown’s full year results The group's total active customers grew for the first time in four years by 4 percent to 2.9 million. Clothing and footwear mix increased during the year from 59 percent of product revenue in FY21 to 66 percent in FY22. Driven by the growth in gross profit, adjusted EBITDA increased by 10.1 million pounds to 95 million pounds and adjusted EBITDA margin increased by 1.7ppts to 13.3 percent. The company said that the trading environment has become more challenging since the start of FY23, with inflation impacting consumer confidence and resulting in a slightly softer level of volumes and revenue growth than previously anticipated. The company’s board remains confident that over the medium term its strategy will support the delivery of 7 percent product revenue growth with a 13 percent EBITDA margin.
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Item of the week: the little black dress

(From left) Image: Michael Kors, By-Bar Amsterdam, Hybrid What it is: The little black dress, or the LBD, is often considered one of the most influential garments in fashion’s history, widely known for its simplicity, accessibility and timeless appeal. It is regularly regarded to have risen into the limelight during the 1920’s, with many fashion historians crediting Coco Chanel as the pioneer behind the design. Its allure only increased when it was worn by actress Audrey Hepburn in the film Breakfast at Tiffany’s, lunging it into popularity and pushing it to become the wardrobe essential it is known as today. What actually constitutes a LBD is often quite flexible, but the term is mostly associated with simple, black dresses that are functional and easy to wear. However, hemlines and silhouettes for LBD’s on the runway this season were fairly complex, with many designers offering up a total revamp of the classic dress style. Image: Wolford Why you’ll want it: The LBD is a timeless piece that has remained completely seasonless since it broke into the industry decades ago. The fact that the LBD’s design requirements cannot be put into a specific box means that it can appeal to a broad customer base, with a limitless number of design possibilities available that can bend to personal preferences and retail concepts. Its simplicity and accessibility has allowed it to remain relevant for a lengthy period of time, and will continue to propel it into the centre of fashion year after year. One of the great qualities of the dress is its longevity. Once a shopper owns it, they will likely hold on to it for a long time, giving it an expansive life span and making it a good investment piece for any buyer. Image: Madewell Where we’ve seen it: While the LBD is usually a part of the designer runway season, its prominence throughout AW22 has cemented the design’s place in fashion for the coming months. Amidst the staple bright pink of Valentino’s show, Pierpaolo Piccioli also presented a selection of black dresses, including an intricately cut, off-the-shoulder midi, that bore a structured full skirt. Versace also stuck to the clean cut LBDs, offering up sharp shoulders and form fitting silhouettes that dominated its ready-to-wear line in its entirety. Nensi Dojoka also took on the timeless look, presenting a black dress that utilised her typically complex design style of string constructions and cut out shaping. Meanwhile, Off-White took a more modern, literal approach with a mini sequin strapless number, sported by Kendall Jenner and bearing the words ‘Little Black Dress’ which were encased in Abloh’s signature quotation marks. Image: Only How to style it: As a stand alone piece, a statement garment or a layered look, the LBD’s styling opportunities are endless, with its simplicity making it especially suitable for both a daily look or an occasion wear outfit. For evening’s out, the dress can be paired with heeled boots or strappy sandals, and can be worn by itself with simple jewellery or layered under an oversized blazer or longline coat. To dress the LBD down, pair it with sneakers or mules and a denim or leather jacket for an easy-to-throw-on daywear look that can be donned from season to season. Accessories can bring this simple but classic piece to life, with unlimited options of how to approach this technique. Belts can tie a piece together, while a wide-brimmed hat or silk neck scarf can effortlessly elevate an outfit. Image: Stella McCartney The LBD is a seasonless staple, with a rich history in fashion that spans decades and will continue to have an impact for years to come. With its versatility, accessibility and such a broad spectrum of styles available, the LBD has the unique ability of appealing to an extensive customer base and can fit into almost any retail concept. Image: Superdry Similar items available for (pre)order can be found in the FashionUnited Marketplace. You can find them by clicking on this link.
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Kidpik reports 18.7 percent drop in Q1 revenue

Image: Kidpik, Facebook Kidswear subscription service Kidpik has reported a 18.7 percent drop in revenue in the first quarter of the year after announcing last month that changes in how data can be used by social media platforms will impact its trading. In the three months to April 1, the company made revenue of 4.3 million dollars, down from 5.3 million dollars in the same quarter a year ago. The total number of items the company shipped in the quarter dropped to 370,985 from 543,243 a year ago. On a brighter note, the average keep rate increased to 70.4 percent from 67.7 percent. When sharing its full-year results in April, Kidpik said changes in data access and availability across social media advertising platforms would impact new customer acquisitions. CEO Ezra Dabah told investors on Monday: “Lower customer acquisition rates across the traditional social advertising channels persisted throughout the industry in the first quarter, negatively impacting our net sales and results.” But he said this was partially offset by an improvement in the company’s online website sales. He continued: “We continue to see consistent gross margins of approximately 60 percent, and our ‘keep rate’ again surpassed 70 percent for the quarter. We are taking actions to increase conversions and optimize our acquisitions costs.” Kidpik’s gross margin fell to 59.9 percent from 60.9 percent in the prior year period. Its net loss expanded to 1.8 million dollars from 1.5 million dollars a year earlier, while its adjusted EBITDA loss was 1.5 million dollars compared to an EBITDA loss of 1.3 million dollars a year earlier.
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Allbirds announces opening of community-inspired stores

Image: Allbirds, Green Hills Sustainable footwear label Allbirds has announced it has opened two new stores in the US, both centred around the local communities they are situated in. In Chicago, the brand has launched a new retail store and community centre in the city’s Fulton Market, similar to its other new location in Nashville’s Green Hills. The openings mark the B Corp’s 43rd global store, with locations spanning North America, Asia and Europe. Both of the stores’ interiors aim to bring attention to the raw materials it uses for its products, including merino wool and sugarcane, with much of the design inspired by the natural world itself. Items are also displayed in a way that allows customers to see the carbon footprint for them. According to Allbirds’ press release, the stores further reference the communities they are located in. For example, the Fulton Market community is mirrored through custom mosaic artwork by a local artist, while Nashville’s influence can be seen in products like a Tennessee Iris flower bag or Music Row inspired pin. The new stores follow a string of openings throughout the US by the eco-conscious brand, including in New York and New Jersey.
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Tom Ford steps down from CFDA board

Image: CFDA, Tom Ford The Council of Fashion Designers of America (CFDA) has announced that Tom Ford will be stepping down from his place on the board on May 31. Ford has served as chairman of the CFDA since June 2019. The organisation’s CEO Steven Kolb will take over the role of interim chair throughout the rest of the year. In January, the organisation will vote for a new chairperson to succeed Ford. In a release, the American designer said in a statement: “When I began my role as chairman in June of 2019, my goal was to help the American fashion industry become more globally recognised for its talent and importance.” He went on to emphasise the extraordinary circumstances faced throughout the pandemic and how the industry overcame the difficulties through a new way of working. In his three years as chairman, Ford initiated a number of initiatives through the CFDA, many of which focused on diversification and inclusion. He also led the A Common Thread initiative with Vogue, distributing over five million dollars in relief aid to fashion brands during the pandemic. “As chairman of the CFDA, I have had the privilege to experience first-hand the remarkable determination and optimism that drives our industry,” Ford added. “I am honoured to have been able to support the truly incredible talent in the American fashion industry for these past three years, and I look forward to continuing in my role on the CFDA Board.” Additionally, the CFDA announced that the board unanimously elected Tory Burch, Thom Browne and Aurora James to the board, effective June 1.
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Shein's sales tapered in 2021, potentially affecting its 100 billion dollar valuation

Image: Shein When Shein last year revealed it was preparing for a listing, potentially valuing its fast fashion business at 100 billion dollars, it was ambitious by any standards. The Chinese DTC retailer has become a phenomenon in its own right, surpassing global giants Zara and H&M to be the leader in the low-priced fashion market. Sales skyrocketed during the pandemic, accelerating 250 percent growth in one year, making Shein the biggest single brand online store in the world. But times are changing. New figures published by Bloomberg say Shein’s growth slowed to 60 percent in 2021, much less dazzling than the previous year. Revenue is thought to have grown from 10 bn dollars in 2020 to 16 bn dollars in 2021. The United States remains the largest market for Shein, and the brand does not currently sell online in its Chinese home market. The company was said to be establishing its headquarters in Singapore, in order to facilitate an IPO in the U.S. Other fashion e-tailers, such as Zalando and Boohoo, also reported a drop in sales in 2021. The world is emerging from the pandemic with new shopping habits and needs. A slowdown in sales for Shein could greatly affect its lofty listing ambitions, which would value the company more than H&M and Zara combined. The route to being listed on the New York stock exchange no longer looks as easy as it did last year.
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Klarna launches virtual shopping experience

Image: Klarna, Virtual Shopping Payment provider Klarna has announced the launch of a Virtual Shopping offering, allowing customers to browse and buy products through live chats and video calls. Utilising Klarna’s Store App, in-store experts will be able to connect with shoppers online, with the option to provide demonstrations on items and share photos of products with app users. The initiative, which has already gone live in 18 markets, including the US, Canada and the UK, has connected with over 300 brands for the launch, with the likes of Levi’s, Hugo Boss and Herman Miller jumping on the omnichannel bandwagon. Increase in consumer confidence The ‘buy-now, pay-later’ provider hopes the new feature will provide customers with more confidence in their purchasing decisions, ultimately improving the performance for merchants. “In the past, online shopping has been missing a key element: human interaction,” noted David Sandström, the firm’s chief marketing officer, in a release. “With Virtual Shopping, we replicate the brick-and-mortar experience of receiving personalised advice from an in-store expert and bring it to the online realm.” Sandström added: “This will empower our partnered retailers around the world to bring their online stores to life and build customer relationships that last.” The feature’s launch comes as part of Klarna’s acquisition of social shopping platform Hero, last year, which saw the virtual shopping offer introduced to its retail partners.
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Selfridges hosts charity car boot sale with designer goods

Image: Selfridges x Women for Women International Luxury department store Selfridges hosted a charity car boot sale over the weekend, in support of Women for Women International. Led by the nonprofit’s ambassador Alex Eagle, the #SheInspiresMe Car Boot Sale took place at the retailer’s Car Park, which is powered by its resale platform, Resellfridges. Shoppers visiting the sale were able to sift through items donated by designers, brands and celebrities, with many pieces discounted by up to 75 percent. A cohort of donors took part in the initiative, including the likes of Jimmy Choo, Temperley London and Rejina Pyo. All the money raised from the event will be donated to Women for Women, supporting its work in uplifting female survivors of emerging conflicts and crises. The initiative has raised over 700,000 pounds for the charity since its launch in 2016, with its past three virtual car boot sales contributing to 228,000 pounds of its total. In a release, Sara Bowcutt, Women for Women’s UK managing director, said on the virtual editions: “It enabled us to continue to reach thousands of women across the countries we work in, amid the exceptional challenges of a global pandemic, escalating violence, instability and gender equality.” She continued: “For me, this illustrates the incredible bond of sisterhood which is the heart of everything we do at Women for Women International.”
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