Stitch Fix's CEO on the bounce back of retail post-pandemic

On this episode of The Future of Fashion by Vogue Business, Elizabeth Spaulding, CEO of Stitch Fix. Spaulding, who took up the role shortly before the pandemic hit, discusses new features in the before-you-buy sector, and rebound mode as the industry and economy picks back up.
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SS23 Trends: Copenhagen fashion week

Having established a reputation as the ‘green’ fashion week, Copenhagen’s showcase stayed true to its ethical and sustainable roots with an SS23 outing focused on remaking, reusing, and recycling. Upcycled materials, gathered from existing products or waste by-products were reinvented as contemporary apparel with business models centered around extended product lifespans and small-scale production. Raeburn As one of the three finalists in the Zalando Sustainability Awards, Christopher Raeburn landed his collection in the Danish capital. Recycled parachutes provided much of the fabric for the series of urban sports essentials, supported by organic cotton and wood base materials. Sweats, jackets, shorts, and protective vests in a palette of black, white, and grey, or aircraft inspired prints focused on remaking rather than making new and designing with optimised product longevity in mind. Holzweiler Recycled parachutes also made an appearance at Holzweiler, as hot air balloons suspended over the runway and as inspiration for the crochet harnesses and drawstring gathers adorning the apparel. Introducing more one-of-a-kind pieces into the collection, designer Maria Skappel Holzweiler looked to small production, upcycling, and handcrafting. Dresses made from tablecloths and floaty parachute silk pants were joined by handknits, fringing techniques and intricate cuts outs. Skall Studio Continuing with their mission to tread lightly on the earth, Skall Studio fused artisanal crafting with eco conscious production. Fabrics loomed by hand in India and dyed with local, plant-based colourants were adorned with intricate openwork techniques, fringe trims and teamed with natural woven straw accessories. Vintage linen and lingerie inspirations alluded to the slow fashion era as responsible design returns to the runways once again. Exclusive Offer: FashionUnited readers can get free access to Trendstop’s Fall-Winter-2021-22 London Fashion Week: The Return of Optimism report. Simply click the banner to receive your free report. Trendstop.com is one of the world's leading trend forecasting agencies for fashion and creative professionals, renowned for its insightful trend analysis and forecasts. Clients include H&M, Primark, Forever 21, Zalando, Geox, Evisu, Hugo Boss, L'Oreal and MTV.
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Global Fashion Group reports Q2 revenue, NMV growth

Image: Global Fashion Group Global Fashion Group (GFG) has reported revenue of 505.9 million euros in the second quarter ended June 30, up 27.3 percent from the previous year, or up 10.8 percent at constant exchange rates. The group, which operates e-commerce platforms The Iconic, Zalora, Dafiti, and Lamoda, posted net merchandise value (NMV) of 610.1 million euros, up 29.8 percent from the prior year, or up 11.8 percent on a constant currency basis. That growth came despite a 4.6 percent drop in active customers “reflecting subdued demand and the reduced levels of marketing investments”. However, NMV per active customer was up 23.4 percent as a result of higher order frequency and average order value, which was “predominantly driven by inflation and higher full-price mix, number of items and country mix”. Bottom line GFG narrowed its loss to 8.6 million euros in the quarter from a loss of 17.5 million euros a year earlier, which it said was largely due to positive FX gains and the repurchase of convertible bonds. Meanwhile, its EBIT loss widened to 17 million euros from the loss of 15.4 million euros. Adjusted EBITDA grew to 51.6 million euros from 11.6 million euros. Adjusted EBITDA margin was 10.2 percent compared to 2.9 percent a year ago. “We delivered our results under difficult circumstances with all of GFG’s regions facing varying volatile environments, which our team adapted to well,” co-CEOs Christoph Barchewitz and Patrick Schmidt said in a statement. “Despite the challenges in the quarter, we have continued to deliver against GFG’s strategic priorities,” they said. On a constant currency basis, GFG expects full-year NMV growth of between 10 percent and 15 percent, and revenue of 1.9 billion euros. It expects an adjusted EBITDA margin of between 3 percent and 5 percent.
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Cos steps into wholesale as it partners with Nordstrom, Breuninger, Yoox

Image: Cos, Facebook London-based fashion brand Cos is stepping into wholesale this autumn with the announcement it has partnered with three international retailers as part of its ongoing growth strategy. The brand, which is owned by Swedish fashion giant H&M, is linking up with Nordstrom in the US, where it will be sold online as well as in four stores across New York and New Jersey from September 13. It will also go live on Yoox’s online channel in September where it will be available to buy across all the retailer’s live markets. Finally, from early October Cos will be sold on German department store chain Breuninger’s online platform, where it will be available for customers across Germany, Switzerland, Austria, and Poland. “Expanding into wholesale has been in discussion for a while, but now the timing feels right,” said Cos managing director Lea Rytz in a statement. Global ambitions Rytz continued: “We know the retail landscape is changing and we need to meet our customers - new and existing - beyond our owned channels, by partnering with best-in-class multi-brand retailers who complement our DNA. This will enable us to engage and inspire customers in more places.” Cos, which focuses on minimalist and timeless designs including wardrobe staples and reinvented classics, first launched on London’s iconic Regent Street in 2007, before opening an online store in 2011. Fast forward to today and the company is available across Europe, Asia, North America, the Middle East, and Australia. In September 2021, the brand debuted at London Fashion Week where it showcased its AW21 collection with a hybrid show comprising a physical catwalk mixed with digital activations. Last month, Cos announced it will be showcasing at New York Fashion Week this September. Although it didn’t share specifics about the show, it teased it would “celebrate New York’s diverse communities and individual expression against the city’s own powerful backdrop”.
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Gap UK completes migration to Next Total Platform, plans to open five new shop-in-shops

Image: Gap Gap has announced that its online UK business has completed its migration to Next Total Platform. The US fashion brand said it will continue to trade under its standard UK website, but consumers will benefit from Next’s “strong operational capabilities and excellent customer service offering”. This includes a click-and-collect service, free returns to 450 Next stores in the UK, next-day home delivery, and free next-day delivery to Next or Gap stores. Gap and Next first announced their joint venture in September 2021, as the former looked to boost its presence across the pond. Adrienne Gernand, Gap’s managing director of international, global licensing and wholesale, said in a statement: “We are excited to deepen our relationship with Next to better serve our customers in the UK and Ireland.” New shop-in-shops In addition to the website, the companies announced the opening of five new Gap-branded shop-in-shops set to open in the coming months, including one in Lakeside in August, another in Birmingham mid-September, and a third in Manchester towards the end of 2022. In March, Gap opened its first Gap-branded shop-in-shop in Next’s largest West End store on London’s Oxford Street back in March. Gernand added: “The launch of Gap online through Next Total Platform coupled with our plan to grow the business through Next retail locations will unlock great potential to deliver the best possible omni-channel service and experience in order to meet our customers’ needs and build loyalty in the market.” Next first announced its plans to become an online host for other brands in 2020, when CEO Simon Wolfson revealed the company had been “quietly” building Next Total Platform over the past year. The platform runs other fashion brands’ websites and back-end operations.
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Japanese fashion designer Hanae Mori dies at 96

Hanae Mori (April 2015) | Image: Takahiro Yamamoto / Yomiuri / The Yomiuri Shimbun via AFP Japanese fashion designer Hanae Mori, who cracked the elite world of Parisian haute couture, has died at her home in Tokyo aged 96, Japanese media reported Thursday. Nicknamed “Madame Butterfly” for her signature winged motif, over the decades Mori's luxurious creations were worn by Nancy Reagan, Grace Kelly and numerous other members of high society. But she was also a pioneer for Japanese women as one of a tiny number to head an international corporation. Mori died on August 11, Kyodo news agency said on Thursday, citing her office, without giving further details. Public broadcaster NHK and other media outlets also reported the news, saying a private family funeral had already taken place and giving the cause of her death as “old age”. Mori's trailblazing career took her from Tokyo, where she started out making costumes for cinema, to New York and Paris, where in 1977 her label became the first Asian fashion house to join the rarefied ranks of haute couture. Her first collection abroad, in New York in 1965, celebrated the theme “East Meets West”. Japanese fashion greats such as Issey Miyake, who died earlier this month, followed in her path. Though she shuttered her Paris atelier in 2004 after her last couture show there, Hanae Mori boutiques remain open in Tokyo and her fragrances are still sold worldwide. In January, she summed up her feelings towards the industry in a special column for Japan's Yomiuri Shimbun daily. “Fashion is something that pushes you, gives you courage to spread your wings and allows you to have adventures,” she said. In its heyday, Mori's fashion and business empire occupied a whole building in Tokyo designed by the architect Kenzo Tange - later torn down and replaced with another structure at typical Japanese speed. From the loss of the building to the retirement of her fashion house from haute couture, “not everything was positive,” she reflected in her Yomiuri column. “It was like my butterfly wings were torn off. But this butterfly was able to fly all over the world for 70 years, because I loved making clothes.” (AFP)
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UN report says it is reasonable to conclude China forced labour in Xinjiang, as H&M returns to Tmall

Image: Tmall H&M On the day the UN released its report of the “Special Rapporteur on contemporary forms of slavery, including its causes and consequences," stating it is reasonable to conclude China forced labour among Uighur minorities, H&M went back to business on the country’s online behemoth, Tmall. The unfortunate timing for the Swedish fast fashion giant sees Tomoya Obokata, who authored the report, confirm the coercive nature of China’s employment programs in Xinjiang points to forced labour even as they improve employment opportunities for some minorities. In layman's terms, it is likely the cotton sourced from Xinjiang is tainted with human rights issues. "Given the nature and scope of the powers exercised against affected workers during forced labor, including excessive surveillance, harsh living and working conditions, restriction of movement as a result of internment, threats, physical and/or sexual violence and other inhuman or degrading treatment, some cases may amount to enslavement as a crime against humanity, which merits further independent analysis,” Obokata’s report said. China is equally a critical material supplier as it is a revenue stream for H&M. The country accounts for approximately 5 percent of its turnover and sales dropped 23 percent in the second quarter of 2021 amid boycotts. H&M operates around 375 stores in China. It is important to note that H&M did not withdraw from Tmall 16 months ago, but that at the height of the controversy Tmall dropped H&M after it voiced criticism of forced labour in Xingiang and that it would stop sourcing cotton from the region. Tmall responded by removing H&M's collections from its site or making the brand unsearchable. H&M did not comment on its return to China’s Tmall, nor on the UN’s findings and report. Read the full report here.
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Recycling polycotton, which accounts for half of textile waste, may soon become the norm

Image: Circ.earth Recycling fibers and implementing circular processes is a medium term goal set by many apparel companies, but little headway has been made to recycle mixed fabrics, like polycotton. Polyester cotton is one of the most unsustainable fabric blends yet loved by fast fashion companies because of their low cost cheap and durability. Circ, a Virginia-based biofuel and textile recycling startup, is hoping to counter reliance on virgin polyester-cotton blends, which are inexpensive to produce but nearly impossible to break down. Polycotton also accounts for half of global textile waste. Polycotton accounts for half of global textile waste. While plastic and polyester can be recycled when they are ‘pure’ blended fabrics, those mixed with natural fibers such as cotton face recycling challenges without one of the fabrics degrading during the process. Raising 30 million dollars in a successful funding round last month, Circ is investing in new technologies that (re)sources and (re)harvests raw ingredients out of clothing waste. The company claims it can entirely eliminate the demand for raw ingredients needed to make clothing by creating new clothes entirely out of old ones. The process employs part recycling and part groundbreaking science, using water, pressure and responsible chemistry to recover natural materials from man-made products. Circ is already working with companies such as Inditex and Patagonia, recycling fabrics such as cotton, polyester and polycotton, to achieve the specific product requirements by its clients. Circ technology aims to design closed-loop, certified manufacturing systems that power clothing brands entirely designed for sustainability and circularity without ever needing to source new raw materials. One of its goals is to recycle 10 billion garments by 2030, representing 10 percent of the global apparel market, which will save more than 100 million trees. Meet the most circular label in fashion??https://t.co/cVTPmJo31A pic.twitter.com/XmEAw0ortg— Circ™ (@circ_earth) July 20, 2022
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Meet the NYC illustrator who sketches at Paris Haute Couture shows

FashionStrokes.com Interview There’s no denying Elly Azizian, who illustrates under the moniker Fashion Strokes, has an impressive client list: Van Cleef & Arpels, Oscar de la Renta, Valentino and Sotheby’s to name a few. Nevertheless it is quite a rarity in modern times to be flown to Paris to sketch inside the elite environment of haute couture where the one-off handmade gowns on display are bespoke creations purchased by the world’s royalty rather than loaned for photo ops to Hollywood celebrities as is common in ready-to-wear. Azizian tells FashionUnited how she carved out such a niche spot in the field of fashion illustration. How did you get invited to sketch at the haute couture shows? I went to FIT to study couture and was really lucky to have great professors, but although I did draping, pattern cutting, sewing, all my professors unanimously said my drawing was much better. And they were right. I don’t know if I have the temperament for sewing as I get to restless but I have that background of construction and craft and have kept a toe in the couture world. When I fully dove into illustration I met up with a Chilean fashion magazine, a super small and niche publication and, as it was around couture season, I floated the idea that I could go to fashion week and cover it for them. I don’t think they had thought it was really a plausible thing to do but I applied for a press pass and got accredited, much to everyone’s surprise. We got a few invitations, small shows at first, the second and third tier, not the legacy brands, but some really great couture companies. Then it grew because when you’re on that list of contacts, people have their eye on you. I met some great PR companies that were really kind and I showed them some work and it snowballed into a bi-annual occurrence. FashionStrokes.com Where are you situated when sketching the runway looks? I think Paris is very specific because a lot of the shows happen at historic landmarks and so the set ups can be a bit cumbersome. But depending on how much space we have, very occasionally I will have the luxury of an actual table which is usually in the little gap between the photographers and the seated audience. Occasionally if it’s a brand that doesn’t want immediate sketches but want a more detailed sketch afterwards, I have the luxury of sitting in the audience which is fun. What do the photographers make of having you there beside them? At first I think it was a novelty for them and they were surprised to see someone next to them not with a camera but a sketch pad, Now I’ve come to know some of them and it’s a bit more social, especially at the shows I attend yearly. They’re very kind and make space for me. What are your go-to materials for sketching runway shows? It’s definitely pared-down but I tend to do a lot of line work regardless of the occasion. At home I’ll work with collage, pastel and I like to experiment. At the shows it’s more about pencil, graphite, couple of marker highlights, and if I use pastels it’s always the nice manicured pencils that you can smudge a little and not have dust go everywhere. I do try to make sure it’s a contained situation. They have those great pens with water in them which I tried once. But you see the fear in the eyes of the photographers when they see water next to these massive banks of outlets. Are there any requests to create digital sketches? Digital options have actually, surprisingly, never came up. I suspect that most companies that have had me in know my work is primarily using analog methods. I also think there’s a certain romanticism and luxury to holding a fine sturdy stock paper with ink and sketch marks. It’s very in line with the essence of couture, especially as they often gift the sketches to clients. FashionStrokes.com How do you prepare for sketching at the couture shows? I do live drawing sessions beforehand such as with Drawing Cabaret Couture or Ami Benton, London-based productions via Zoom. I get into a rhythm of really quick live drawing or slow meticulous work and it’s hard to balance. One always feels more comfortable than the other. Also just looking through magazines and doing quick sketches from them. Sometimes if I know it’s going to be a slammed event with lots of guests, not necessarily couture shows, I might have a backup of pre-planned poses, like croquis, that I know I can pull from quickly. How do you capture the looks which pass before you in such a flash? The gowns are so intricate that the actual speed of the couture runway is a little slower than ready-to-wear so that really does act in my favor. Of course, you can never capture all the looks. And the models will stop at points along the runway, and at the Juana Martin show she had some of the models do little abstract performances which helped. How many sketches do you produce per show? It depends. I’ve heard stories of companies demanding a certain amount but I haven’t come across that. Everyone’s been wonderful flexible with me. I find that I can do, say conservatively, 7-8 sketches a show which isn’t a lot when you think of how many looks go down. The big legacy brands might have 80 looks, but smaller couture brands have 20-30, so if I can get a third of that everyone seems happy. At that pace I don’t feel the strain and can still catch whatever jumps out at me. How was sketching at Zuhair Murad? I think he’s the highest ranked brand that I’ve worked with and his gowns are so beautifully intricate I do feel bad that I don’t capture as many looks as I would like. I think that’s one of the shows that comes with more of a time crunch. But at the same time, because they’ve been so kind and they’re so appreciative of the intricacy of my work, the same way they appreciate their own craft, there’s never been an issue of quantity. How would you describe the feeling of sketching in that stressful yet exciting environment? As a fan of any performance I think that moment when the lights dim and you hear the music swell up and you know something’s about to happen, is amazing wherever you are, whether concert, theater, or fashion show. It’s a great adrenaline kick. Then you see that first gown and it kicks in oh right, I’m working. Those first few minutes of awe, then a brief blip of panic, the realization that I’m not here to just marinate in beauty, and then I’m in the rhythm. Towards the end it’s very pragmatic; you look through your sketches, they get collected, it becomes very business. What happens to the sketches you create? It depends. Some press and PR agencies take them and keep them for the brand, some brands gift them to the clients who purchase the gowns because they are also one-of-a-kind. Some will use them for social media purposes. It depends on the company. Why have you been embraced at couture shows over ready-to-wear? I think so many couture companies are trying to do things out of the box whereas in ready-to-wear everyone follows similar trends. In the couture world you get big artistic ideas and concepts that change from season to season. But I’d love to work with any company that really embraces costuming elements, something really out of the ordinary, that’s where my heart is. FashionStrokes.com As couture shows tend to attract celebrities, do you sketch them also? I see them in the periphery. I’m more with the photographers so I get a front row view of some of the mayhem that ensues but I’m not in the middle of it. I had the pleasure this time of sketching Rossy de Palma who has always been a massive fashion icon to me and she was so kind afterwards, sharing my work and being complementary. That was a real treat.
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Furla’s H1 sales increase by 12 percent

Image: Furla Furla recorded a 12 percent increase in global sales in the first half of 2022, showing a recovery trend, surpassing last year's results. The company said in a release that as an effect of the increased local consumption and the return of local and US tourist flows, EMEA generated a growth of 43 percent, while North American sales recorded a 74 percent rise. The company added that despite the ongoing effects of the pandemic and various restrictions in the first quarter of the year, a positive value was also achieved in Japan, with an increase of 6 percent. The APAC market experienced a 27 percent decline due to the impacts of Covid-related measures in China and the decline of point of sales that most affected this geographical area. The company further said that Furla will continue the implementation of the strategic relaunch plan with the new CEO who will be announced shortly. Aa of June 30, 2022, Furla operated 432 point of sales across geographies compared to 452 in 2021 and the company recorded a turnover of 305.8 million euros in 2021.
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ThredUp says budget shoppers holding back in Q2 report

Image: ThredUp Resale service provider ThredUp reported strong year-over-year growth in its Q2 financial report, however noted that budget shoppers were holding back on spending as the economy continues to take a hit. In its recent earnings call, CEO James Reinhart said that the company’s total Q2 revenue came out to 76.4 million dollars, at a 27 percent year-over-year growth. Its network of 1.7 million active buyers and its 1.7 million orders additionally represented growth of 20 percent and 40 percent, respectively. The company reported a gross margin of 68.9 percent and gross profit growth of 19 percent, with record gross margins in its US business of 74.2 percent. Furthermore, ThredUp’s net loss was 28.4 million dollars, almost double that of its 14.4 million dollar net loss during the same period in 2021. A notable trend highlighted by Reinhart was that of its premium shoppers trading up and budget shoppers trading down. Within its deep discount subsegment of consumers, average order value (AOV) had seen a seven percent decline, while upscale shopper’s AOV had increased by 15 percent. Additionally, its budget shoppers were trading down to items that are 24 percent less expensive, while upscale were doing the opposite. Looking ahead, ThredUp is said it is planning to reach an adjusted EBITDA breakeven towards the end of 2023, with an expected revenue of 80 to 85 million dollars. It added that it has taken steps to reduce expenses across certain departments as it looks to move towards profitability. “We’re not a retailer or DTC ecommerce company. Unlike traditional retailers whose brand equity around pricing, inventory commitments, and fashion manufacturing lead-times can become a liability in a hyper-promotional and slowing macro environment, our consignment structure and flexible, responsive supply chain enable us to take minimal inventory risk,” commented Reinhart. He continued: “We don’t set trends or have to bet on trends many quarters into the future, we can let the data drive our decision making. We think of every listed item in our marketplace as a snowflake - which means we have the flexibility to adjust our prices, seller payouts, processing cadence, recommendation algorithms and merchandising mix to adapt to the consumer environment.” In terms of sell-through percentages YOY, compared with the same period in July, 2021, the platform noted that women’s workwear had continued to trend, with wool blazers up 59 percent and wool pants up 42 percent. Additionally, partywear was also making a comeback, with the sell-through rate of cocktail dresses up 31 percent and heels up 20 percent. Another trend spotted by ThredUp was that of outerwear purchases, which suggested that customers were transitioning to autumn clothing earlier than normal. Wool coats saw an increase of 51 percent, while leather jacket sell-through was up 31 percent.
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Dillard’s launches Courtney Grow for Antonio Melani

Image: Dillard’s; Courtney Grow for Antonio Melani Dillard’s has launched a capsule collection with fashion influencer Courtney Grow under its exclusive Antonio Melani brand. The Courtney Grow for Antonio Melani limited-edition capsule collection has been designed to reflect the Utah-based influencer’s sophisticated style. It offers “fresh transitional and fall styling” options including dresses, sportswear, coats, footwear and a handbag. Commenting on the collaboration, Grow said in a statement: “For a gal who started doing this with the modest hope of one day no longer having to justify all my clothing purchases to my husband - to end up collaborating with Dillard’s to produce this beautiful collection is truly beyond unbelievable.” Image: Dillard’s; Courtney Grow for Antonio Melani Antonio Melani is Dillard’s largest women’s apparel brand. The high-end brand evokes sophistication through tailoring, catering for modern women with an emphasis on luxury fabrications. The collaboration with Grow is available online at dillards.com with select pieces available in 248 Dillard’s locations across the US.
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Victoria Beckham’s brand reportedly facing 54 million pound debt

Image: Victoria Beckham Victoria Beckham’s clothing company is reportedly facing debts of 53.9 million pounds. According to the Mirror, a spokesperson for the former Spice Girl confirmed the figures were accurate. The publication said the eponymous brand and Beckham’s new make-up line lost around 6.6 million pounds in 2020 after it had already racked up debts of 15.6 million pounds in 2019. The spokesperson added that Victoria Beckham Holdings group saw its total revenues fall by six percent to 36.1 million pounds due to the aftermath of the pandemic. The statement continued: “This group rapidly responded to the effects of the pandemic and controlled its cash and expenditure which led to a significant reduction in its operating losses by 57 percent, thanks to cost efficiencies across the business and the recalibration of its business model to make it sustainable for the longer term.” Despite losses, annual accounts filed with Companies House in London showed David and Victoria Beckham’s empire had in fact doubled its profits, bringing in 11.6 million pounds in the year ending December 2020 – compared to 4.5 million pounds in 2019.
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