Inside the fairs of FW23, from Florence to Copenhagen to London

The first Neonyt in Düsseldorf comes to an end. Photo: FashionUnited After the interruptions during the pandemic, fashion fairs in Europe are returning to normal operations. But the lockdowns have left their mark, brands and buyers alike were often reluctant to travel in light of the uncertain economic situation. To what extent have fairs like Pitti or Premium been able to return to their old form? FashionUnited has brought together an overview of the fairs for FW23. Pitti Uomo, Florence Pitti Uomo is and remains the place where the (men's) fashion industry gathers at the beginning of the ordering season. The number of exhibitors recovered from the slump during the pandemic to a total of 800. Meanwhile, the number of visitors rose to over 18,000: 13,500 were buyers, 33 percent of whom came from outside Italy. Before the pandemic, the fair had 1,200 exhibitors and over 21,000 buyers. In its January edition, the fair was again able to impress with fashion highlights, such as fresh up-and-coming brands and shows by guest fashion designers like Jan Jan van Essche and Martine Rose. For the first time, there was also an section for dog fashion. Read more about the Pitti Uomo: * Pitti Uomo: An animalistic mood in Florence * Golden Hour in Florence: The street styles of Pitti Uomo Image: FashionUnited Premium and Seek, Berlin The mood at the Berlin trade fairs Premium and Seek was more relaxed than expected after fears surrounding the Christmas business did not materialise. Around 500 brands showed their collections at the two fairs, compared to about twice as many before the pandemic. According to the organiser Premium Group, a total of around 10,000 visitors were counted, 80 percent of whom came from German-speaking countries. Overall, Seek seemed livelier with streetwear and many green brands, while Premium was quieter. Some visitors remarked afterwards that Premium in particular could be more curated. For the first time in three years, Berlin Fashion Week took place at the same time as the fairs. In the same week, the sustainable fashion fair Beyond Fashion Berlin made its debut. Read more from Berlin here: * Berlin Fashion Week: Things are happening, but what’s next? Image: Pure London | Credit: FashionUnited Pure and Scoop, London While other cities experienced some declines in attendance and participation, Hyve Group fairs Pure and Scoop reported positive figures on their return to the UK capital. Over 250 brands exhibited at each show, spanning womenswear, menswear, footwear and accessories. While Pure had a dedicated space for manufacturers, Scoop opted to also show lifestyle collections during its event. Notably, the group never discloses exact numbers of attendance, however at Scoop, which took place the last three days of January, reported “its highest ever number of buyers” for an AW show. Pure also saw positive numbers, with its organiser Gloria Sandrucci noting that international buyers had been among those returning. In total, there were attendees from over 22 countries, Sandrucci told FashionUnited. Read more from Pure and Scoop: * Pure London enjoys positive AW23 edition despite wider retail woes * Pure London: The role of smaller businesses in pioneering sustainable fashion * Scoop celebrates record buyer numbers Modefabriek January 2023. Image: Aygin Kolaei for FashionUnited. Modefabriek, Amsterdam At Modefabriek, 450 brands presented themselves in a colourful and lovingly curated ambience. With this number, the Amsterdam fashion fair is still below the pre-pandemic level. Around 100 newcomer labels used the event mainly to present or reposition themselves in the Dutch and Belgian markets. The fair did not disclose the numbers of visitors, but some brands noticed an increase compared to the previous edition. Like Pitti and Premium, however, Modefabriek is not a traditional ordering fair, so for most exhibiting brands it was still a matter of waiting to see whether the good mood would also be reflected in showroom orders. Read more from Modefabriek: *
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Luxury sector eyes reopening of China

After a year of record sales and profits despite slowing global growth the luxury sector is looking to the reopening of China to deliver further expansion in 2023. The world's largest luxury group LVMH posted a 23-percent jump in sales to a record of 79 billion euros (86 billion dollars) in 2022 and saw profits climb 17 percent to 14 billion. The company's chief executive, Bernard Arnault, wants to continue along that path in 2023, "at the risk of becoming boring". LVMH's rivals also managed blistering growth in sales and profits last year. Sales at Hermes jumped 29 percent to 11.6 billion euros and profits soared 38 percent to a record 3.4 billion. Kering, despite a tough time for its flagship brand Gucci, still managed a 15-percent increase in sales to 20 billion euros, while profits rose 14 percent to 3.6 billion. Ferrari also saw sales race to a new record of five billion euros, delivering 13,221 vehicles last year. The 2022 results were barely dented by the disruption in China linked to end of its coronavirus-related travel restrictions and their progressive lifting at the end of the year, with LVMH calling the month of December an "air pocket". Only Hermes escaped unscathed. "There was no drop in traffic in our stores," said Hermes chief executive Axel Dumas. The company's sales rose 30.7 percent in its Asia-Pacific region excluding Japan. The gradual reopening of China -- which abandoned the last of the draconian travel restrictions of its zero-Covid policy on January 8 -- should help the economy expand by 5.2 percent in 2023, according to the International Monetary Fund's latest forecast. With the restrictions having restrained consumption, the reopening of the Chinese economy is being looked at as a growth opportunity for 2023. Analysts at UBS say 2023 will be the "year of the Chinese consumer", noting that the pandemic restrictions pushed down the share of Chinese consumers in global luxury spending to 17 percent last year, compared with 33 percent before the pandemic. 'Volcano ready to explode' "The Chinese clientele is much more important than it was in 2019," LVMH's financial director Jean-Jacques Guiony told journalists. Guiony does not expect Chinese tourists to return to Europe, where they traditionally spent heavily on luxury goods, before next year. Instead, luxury groups are focusing on Chinese consumers at home. LVMH's Arnault said it was no secret that China needs growth and that the government would likely take steps to facilitate economic expansion as the country reopens. "If that is indeed the case -- and it began in the month of January -- we have every reason to be confident, even optimistic about the Chinese market," he said at the presentation of LVMH's 2022 results. China is a "volcano ready to explode", said Arnaud Cadart at asset manager Flornoy Ferri. "There is an incredible amount of savings that has been built up, an incredible reserve in the hands of the well-off class which wants to purchase luxury goods," he added. Cadart estimated the luxury market in China could jump by 30 percent this year. Kering's chief executive Francois-Henri Pinault visited China at the end of January and said he was amazed by the people thronging stores "like the virus had never been in China". "This is a good sign," said Pinault, who also welcomed moves by Chinese authorities to boost domestic consumption.(AFP)
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Francesca's announces launch of resale program with ThredUp

Image: ThredUp Women’s boutique chain Francesca's has announced the introduction of a resale program called ‘Forever Francesca’s’ that aims to combat fashion waste. For the launch of the new program, the brand will partner with ThredUP, one of the largest online resale platforms worldwide. "We are aware of the environmental impact apparel has on our planet, and our work with ThredUP in launching ‘Forever Francesca's’ is an important first step in doing our part to make a difference," stated chief marketing officer Jann Parish in a press release. The program will allow customers to shop for secondhand products and resell clothing, shoes, and accessories through ThredUP's Resale-as-a-Service platform. The partnership between those companies is part of a growing trend among retailers to address the negative environmental impact of the fashion industry. According to a report from the Ellen MacArthur Foundation, the equivalent of one garbage truck of textiles is wasted every second, and the fashion industry is responsible for 10 percent of global carbon emissions. Through the program, customers can send worn items from any brand to ThredUP for free, which will handle the cleaning, pricing, and selling. By receiving a payout in form of store credits, Francesca's supports the sustainable use of clothing while offering customers an incentive to return and repurchase. According to ThredUP, nearly one billion clothing purchases of secondhand items were made in 2021, showing the shift in consumer demand. Parish commented: "Our Millennial and Gen-Z customers value their eco-footprint but they also come to our boutique for a fun opportunity to find something unique – resale is the perfect blend of both of those experiences.”
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Havaianas owner Alpargatas posts Q4 loss

Image: Courtesy of Havaianas Fourth quarter net revenue at Alpargatas reached 4.2 billion Brazilian real, up 6 percent or 10 percent in constant currency (CC) versus 2021. Recurring EBITDA was 689 million Brazilian real, 17 percent of net revenue. The company reported net loss of 21 million Brazilian real. Havaianas net revenue in the fourth quarter reached 1,086 million Brazilian real, up 3 percent or 5 percent in CC versus the same quarter in 2021. During the year, the brand recorded 4,121 million Brazilian real, an increase of 5 percent or 9 percent in CC against 2021. Havaianas performance in Q4 and 2022 The company said net revenue at Havaianas Brasil grew 2 percent in the fourth quarter, driven by price increases and mix improvement initiatives that caused an increase in the revenue per pair of 16.5 percent. During the year, there was a net revenue growth of 9 percent versus 2021. Havaianas International net revenue reached 36 million Brazilian real representing growth of 7 percent. Net revenue in CC grew 19 percent and revenue per pair increased 11 percent in CC. During the year, international revenue accounted for 29 percent of the total net revenue for Havaianas. EMEA net revenue grew 1 percent and revenue in CC rose 20 percent in the fourth quarter and was driven by RGM, with an increase in revenue per pair of 10 percent in CC. During the year, the company recorded 16 percent growth in CC of the net revenue in the region. US net revenue fell by 20 percent or 15 percent in CC due to the volume drop of 27 percent. The company added that it noticed a price per pair increase of 18 percent in CC versus the fourth quarter of 2021. Revenue from DTC channels grew, driven by e-commerce performance, which grew 86 percent against the fourth quarter last year. Net revenues in China dropped 37 percent or 33 percent in CC. Distributors net revenue grew 23 percent or 32 percent in CC and was driven by volume growth in APAC distributor markets, and revenue growth per pair was 14 percent or 22 percent CC in these markets. Highlights of Havaianas operational results In the fourth quarter, consolidated gross profit was 442 million Brazilian real, 2 percent drop, while in constant currency, the consolidated gross profit was 444 million Brazilian real, 1 percent decrease. Gross profit reached 1,928 million Brazilian real during the year, an increase of 5 percent in CC. Havaianas' recurring EBITDA reached 147 million Brazilian real in the fourth quarter, down 19 percent or 21 percent in CC. The EBITDA margin dropped 4pp or 5pp in CC due to the volume drop in Brazil and the increase in distribution and marketing expenses. During the year, Havaianas' recurring EBITDA added up to 672 million Brazilian real, down 12 percent versus 2021 and down 3pp in the margin. In constant currency, consolidated recurring EBITDA dropped 8 percent year-on-year, decline of 3pp of margin in CC. In Havaianas Brasil, recurring EBITDA reached 174 million Brazilian real, with a 19 percent margin in the fourth quarter, 5pp decline. During the year, EBITDA increased to 548 million Brazilian real, down 1 percent, with a 2pp decrease in margin versus 2021. At Havaianas International, recurring EBITDA was negative by 26 million Brazilian real, an improvement of 6 million Brazilian real and 1 million Brazilian real in CC. During the year, recurring EBITDA added up to 124 million Brazilian real, down 41 percent or 31 percent in CC.
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BFC unveils programme for LFW City Wide Celebration

Image: British Fashion Council The British Fashion Council (BFC) has unveiled the programme of the latest City Wide Celebration as part of the upcoming edition of London Fashion Week. Set to take place from February 17 to 21, the schedule includes a range of public events and activities held by retailers, restaurants and cultural institutions around London. Over 450 of these events will take place at shopping destinations in the city, with participating brands to include Selfridges, Browns and Matchesfashion, at which an exclusive pop-up cafe will be housed. Activities range from workshops to panel discussions, as well as promotions, collection previews and styling sessions. Among other public events are that of in-store retail experiences, including Labrum’s immersive space, an exhibition at Jigsaw and the ‘World’s Smallest Department Store’ by Anya Hindmarch. Further installations will take on a sustainability focus, as will be seen in Aniela’s interactive space that looks to promote methods of upcycling. A similar concept can also be found at the likes of Studio Noirgaze, River Island and Peter Jones, which will each offer a selection of archive, upcycled or handmade garments. The full schedule can be found on London Fashion Week’s dedicated website, alongside the official schedule for the week itself.
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Inflation to add 18.2 billion pounds in non-food retail sales

Sale signs in shop window. Image: Unsplash A new report has found that inflation in the UK could result in a 2.6 percent increase in non-food retail sales, driven by rising consumer prices. According to research by Metapack, ShipStation and Retail Economics, the sector’s sales value is expected to hit 249 billion pounds in 2023, up 18.2 billion pounds of spending on the previous year. However, while the increase initially presents itself as a positive, the E-commerce Delivery Benchmark Report stated that the rise will be caused by businesses looking to increase the price of products in the coming year. In a survey of over 730 retail firms across eight international markets, it was found that 80 percent were planning to increase the price of products, with 40 percent noting that rising costs would be the biggest challenge in 2023. It falls in line with retailers facing rising input and operating costs, causing many to pass on such costs to consumers in a bid to preserve margins. The shift could also be seen among consumer sentiments towards the economy, with 66 percent of consumer respondents citing inflation as their biggest concern. Three quarters further stated that they plan to change their buying habits, either by only making necessary purchases or reducing their spending completely. Despite this, retailers are said to be remaining optimistic about trading prospects in 2023, with more businesses holding a positive perspective over a negative one. Cost over convenience Various factors will play into shifting consumer behaviour, the report noted, including that of delivery costs, for which customers seemingly are moving away from speed and convenience in favour of lower prices. This contrasted the response of retailers, with over a quarter reporting that they planned to increase cost of delivery for customers, while only 18 percent said they wouldn’t. Meanwhile, retail models deemed more affordable for consumers were favoured during the report. This included an increase in interest for online resale marketplaces and second hand purchasing, with over 25 percent of consumers saying they planned to buy from these companies more often in the near future. The report noted that this shift is likely an offset of cost-of-living concerns, possibly accelerating the move to a circular economy. In the end, this behavioural change could result in discounters coming out on top, leaving mid-tier retailers at a potential loss if they don’t adapt. While luxury is less likely to see such an impact, 61 percent of shoppers in this category still stated they planned to tighten their spending, many of which adding they would switch to cheaper brands when buying clothing. Beauty remains priority On the other hand, beauty and health continued to remain an important factor for UK consumers. One in three respondents said they did not plan to change their spending habits in this area, with a further 14 percent preferring to trade down instead of purchase less. In the report, Richard Lim, CEO of Retail Economics said: “Retailers will continue to face a toxic mix of pressures this year as rising input and operating costs collide against a backdrop of weaker consumer demand, rising interest rates and shifting consumer behaviours. “These conditions favour those retailers who have strong balance sheets who can invest heavily in price, leverage data to target their most valued customers and win new ones, while efficiently utilising stores to provide a truly omnichannel proposition. “Those that carry high levels of debt, have weak pricing power and sit in the middle of the market could find life very difficult.”
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JCPenney names Keith Melker chief transformation and strategy officer

Keith Melker, chief transformation and strategy officer at JCPenney. Image: JCPenney American shopping chain JCPenney has announced the appointment of Keith Melker as chief transformation and strategy officer. In the role, Melker has been tasked with overseeing the transformation office, ensuring related initiatives are executed to maximise value creation and defining the company’s corporate strategy. Key areas to be focused on are that of driving profitable consumer traffic, enhancing inventory management, advancing digital growth, exploring strategic partnerships and evolving the value delivery model, a press release read. Most recently, Melker served as chief executive officer for property management company Wehner Multifamily, prior to which he also held the position of chief strategy officer for Kimberly-Clark Corporation. Speaking on the appointment, Marc Rosen, CEO of JCPenney, said: “As we continue our transformation journey into 2023, we’re laser-focused on achieving our goals to better serve our customers as they turn to JCPenney for style and value. “Keith’s extensive experience in transformation work and strategic leadership abilities will make him a valued advisor in this next step for our organisation.” Meanwhile, Kate Mullen will remain as the retailer’s chief digital officer, continuing to play a vital role in its transformation journey.
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Grammys red carpet: bold colours, basic black, bling

Beyoncé wearing Gucci at 65th annual Grammy Awards. Image: Gucci Music's brightest stars on Sunday brought their fashion A-game to the Grammys red carpet, strutting their stuff in bold colours, slinky styles, major bling and barely-there gowns. While the Oscars are known for embracing a certain brand of Hollywood glamour, the Grammys are in your face: some of the most iconic fashion looks have emerged on music's biggest night, like Jennifer Lopez's plunging green Versace gown in 2000. Here's a look at what the A-listers wore to the Grammys: Rainbow effect If you want to get noticed on the red carpet, a pop of colour does the trick. Lizzo -- who won Record of the Year honours for "About Damn Time" -- served up major fashion drama in a voluminous orange Dolce and Gabbana cape with huge floral blooms, over a sleek corseted gown in the same vibrant hue with peach eye shadow, fingerless mesh gloves and nail art to match. Taylor Swift, who won the Grammy for best music video for "All Too Well," stunned in a two-piece bejeweled bluish-purple Roberto Cavalli number -- a long-sleeved crop top and long skirt -- in keeping with her album title "Midnights." Adele wearing Louis Vuitton at 65th annual Grammy Awards. Image: Louis Vuitton Adele, who won for Best Pop Solo Performance, wowed in a full-length Louis Vuitton burgundy gown with sculptural shoulder ruffles and a plunging neckline, her hair cascading in soft waves. At the gala, she was seated with Lizzo -- a major power duo. Super-producer Pharrell Williams rocked up in a quilted red leather ensemble -- with a (faux?) fur coat over the top and uber-cool blinged out sunglasses. And pop dreamboat Harry Styles -- who won Album of the Year honours and the award for Best Pop Vocal Album -- obviously couldn't choose which colour to go with, so he wore them all. The British singer donned a glittering Harlequin-patterned sleeveless jumpsuit in every hue of the rainbow encrusted with Swarovski crystals, leaving his chest bare to show off his body ink. Country folk rocker Brandi Carlile donned a sparkly black Versace suit with a long coat and a pop of color -- a fuchsia blouse that was more readily visible during her performance of her Grammy-winning song "Broken Horses." Harry Styles wearing Gucci at the 65th annual Grammys. Image: Gucci Bold in black Of course, some stars went for basic, but sexy, black. Olivia Rodrigo, last year's Grammy winner for Best New Artist, adopted the naked dress trend seen on several recent showbiz red carpets in a sheer floor-length black gown. Brazilian superstar Anitta, up for Best New Artist honors this year, also understood the assignment -- she slayed in a strapless Versace gown with see-through detailing and a long train. And Doja Cat, who wowed fashionistas at Paris fashion week with her exuberant looks and wild makeup, showed up in another Versace dress -- hers was a one-shoulder latex frock that hugged her curves, finished with long gloves. Simply flawless As the new all-time Grammy winners with 32 statuettes, Beyonce is in a class by herself, and that applies to her fashion as well. The 41-year-old superstar arrived at the gala more than an hour late -- due to traffic, host Trevor Noah said -- in a strapless Gucci corset gown with a silver skirt cut up to her hip and rippling out in shimmering ruffles to finish in a train. Elbow-length gloves finished off the look for the new reigning queen of the Grammys.(AFP)
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Vestiaire Collective partners with Courrèges on resale rewards scheme

Vestiaire Collective X Courrèges resale partnership. Image: Vestiaire Collective Resale platform Vestiaire Collective has unveiled a new partnership with Courrèges which will see resellers be rewarded for prolonging the life of the luxury brand’s clothing. Through the partnership, Vestiaire Collective hopes to uncover the best pre-loved items from all eras of the French house, while also promoting more responsible fashion. The deal will reward customers for reselling Courrèges pieces through the partnership’s dedicated website. In exchange, they will receive a gift card to be used on Courrèges’ e-commerce site, which will include a 15 percent bonus. In a release, Adrien Da Maia, Courrèges’ CEO, said: “Through its history and the timelessness of its style, Courrèges has always embroidered the idea of sustainable fashion. “Through our new designs, we are creating the vintage offer of tomorrow and our ambition is to extend the life cycle of Courrèges pieces. By facilitating the resale and authentication of all Courrèges pieces, this partnership with Vestiaire Collective reinforces our commitment to sustainable and circular fashion.” The scheme adds to the growing list of partnered brands Vestiaire Collective has worked with, as it looks to build on its strategy of bespoke resale partnerships and allow its community to purchase branded items with confidence.
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European market drives 2022 sales at Safilo

Image: Safilo headquarters in Padua Preliminary results for Safilo Group S.p.A., for the financial year ended December 31, 2022 showed that net sales amounted to 1076.7 million euros, up 11.1 percent at current exchange rates and 4.2 percent at constant exchange rates. In the year, the company said, organic sales grew by 7.7 percent at constant exchange rates, recording improvement after the 10.5 percent achieved in 2021 compared to 2019. Safilo closed the full year with an adjusted EBITDA of around 101 million euros and a margin on sales of approximately 9.4 percent. Slightly below management's expectations, 2022 adjusted EBITDA corresponds to an increase of around 24 percent and a margin improvement of 100 basis points compared to the 8.4 percent margin posted the year before. Safilo’s performance across core markets Own brands, the company added, represented an important driving force behind the group’s overall performance, in particular Smith, while Carrera and Polaroid also posted yet another year of double-digit growth, broad based by distribution channel and product category, with Carrera far exceeding pre-pandemic levels. Safilo’s licensed business also delivered very solid growth in the year. By geographical area, Europe, Safilo said, remained in 2022 the key growth driver, with the main markets of the area and the surging business in Turkey and Poland, contributing to the upside in revenues of 12.3 percent at current exchange rates, 12 percent at constant exchange rates and 16.1 percent at the organic sales level. During the year, the North American market benefited from the strengthening of the dollar against the euro, closing up 6.8 percent at current exchange rates. The performance at constant exchange rates, in total, fell by 4.7 percent and 0.3 percent at the organic sales level. Safilo reported very positive sales trends also in the Rest of the World, composed of the business in the IMEA and Latin American countries, as well as in Asia and Pacific, with the two areas respectively up 33.1 percent and 9.8 percent at current exchange rates, 21.1 percent and 3.4 percent at constant exchange rates, and 17 percent and 13.1 percent at the organic sales level. Safilo posts sales increase in Q4 In Q4 2022, Safilo's preliminary net sales amounted to 245.4 million euros, up 5.7 percent at current exchange rates and down 0.6 percent at constant exchange rates and up 0.7 percent at the organic sales level. The group’s business in Europe grew by 5.5 percent at current exchange rates, 5.1 percent at constant exchange rates and by 8.5 percent at the organic sales level. In North America, total sales were up 3 percent at current exchange rates and down 7.5 percent at constant exchange rates. At the organic level, the business softened by 4.7 percent mainly due to the tough comps base with the 19.7 percent recorded in Q4 2021 against 2019, and a softer US wholesale demand in the entry and mid-tier price points. On the other hand, the company further said, Smith posted a double-digit growth in the quarter, recovering the large part of the logistics delays impacting deliveries in the US sport shops channel in Q3, and also Blenders turned back to growth posting a positive quarter, with its online business back to a double-digit upside. Q4 sales trends remained then supportive in Asia and Pacific, up 6.5 percent at current exchange rates, 3.3 percent at constant exchange rates and 4.4 percent at the organic level, as well as in the Rest of the World thanks to a solid business development in IMEA, and the new brands in the portfolio well supporting growth in the key Latin American markets, up 22.1 percent at current exchange rates, 10.5 percent at constant exchange rates and 0.4 percent at the organic level.
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Gucci appoints Sabato De Sarno as creative director

Sabato De Sarno. Photo: Riccardo Raspa / Gucci Gucci has found a successor for Alessandro Michele: Sabato De Sarno takes on the creative direction of the Italian fashion house. De Sarno will report directly to Gucci CEO Marco Bizzarri, Gucci and parent company Kering announced on Saturday. As creative director, he will be responsible for “defining and executing the creative vision of the house” overseeing the women's and men's collections, leather goods, accessories and lifestyle. "I am delighted to have Sabto join Gucci as the new creative director, one of the most influential positions in the luxury industry," said Bizzarri. "Having already worked with a number of the most prestigious Italian luxury fashion houses, he brings with him extensive and relevant experience." New Gucci designer coming from Valentino The Italian has previously worked for various Italian fashion houses. He started his career at Prada in 2005, then moved to Dolce & Gabbana before joining Valentino in 2009. There he was active in various positions until he was appointed to the position of fashion director and managed the men's and women's collections. "I am deeply honored to take on the role of creative director at Gucci," said De Sarno. “I am proud to join a house with such an exceptional history and legacy that over the years has been able to absorb and nurture the values I believe in. I am touched and look forward to bringing my creative vision to the brand." The new Gucci design chief will take up his new position once he has "fulfilled his commitments in his current role," according to the statement. De Sarno will present his first catwalk collection during Milan Fashion Week in September. "With Sabato De Sarno at the creative helm, we are confident that the house will continue to influence fashion and culture through highly desirable products and collections, bringing a unique and contemporary perspective on modern luxury," said Kering CEO François-Henri Pinault. This article was originally published on FashionUnited.DE, translated and edited to English.
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Zegna Group posts strong revenue growth in FY22

Image: Courtesy of Zegna In the fourth quarter, Zegna Group generated revenues of 407 million euros, a 0.5 percent decrease, bringing total revenues for FY 2022 to 1,493 million euros, up 15.5 percent. At cFX, revenues grew 11 percent and declined 2.9 percent in FY 2022 and in the fourth quarter, respectively. The group expects a moderate improvement in adjusted EBIT and a substantial improvement in profit for FY 2022 compared to 2021 despite significant headwinds in the GCR. Zegna targets 2 billion euros in revenues and 15 percent adjusted EBIT margin in the medium term, excluding the Tom Ford fashion business. Commenting on the results, Ermenegildo “Gildo” Zegna, chairman and CEO of the Zegna Group, said: “I am very pleased with how we performed during 2022, in spite of the continued global economic and geopolitical challenges of the year, as well as how we continued to stand by our commitments to the environment, our employees, and our communities.” “Despite China continuing to be affected by Covid-related restrictions throughout 2022, our growth for the year shows the soundness and success of our strategy, global reach, and flawless execution, with ongoing success in the Middle East, U.S., and Europe,” Zegna added. Zegna’s performance across segments The company said in a statement, excluding the GCR, which was affected by Covid-related restrictions throughout 2022, particularly from mid-March to the end of May and then again in the fourth quarter, revenues were up 42 percent for FY 2022, and up 24.7 percent for the fourth quarter. Revenues were up 38.6 percent and up 21.1 percent at cFX in FY 2022 and fourth quarter, respectively. The company added that growth in the fourth quarter was also affected by the end of the Tom Ford International distribution licence agreement with the fall/winter 2022 season deliveries, which had a negative impact on consolidated revenues for the fourth quarter of 2 percent year-over-year. Revenues for the Zegna segment, which includes Zegna-branded products as well as the textile and third-party brands product lines, reached 334 million euros in the fourth quarter, a decrease of 2.2 percent, with the drop in GCR direct-to-consumer (DTC) revenues and the end of the Tom Ford International distribution licence agreement more than offsetting strong performance in other markets. Zegna segment revenues for FY 2022 were 1,177 million euros, a 13.7 percent increase. The Thom Browne segment revenues in the fourth quarter of 76 million euros, up 11.5 percent. In FY 2022, the Thom Browne segment posted revenues of 331 million euros, up 25.3 percent year-over-year. Thom Browne saw women’s products growing slightly faster than men’s, while children’s almost doubled. Despite Covid-related restrictions and closures affecting the DTC channel, the company further said, positive performance was sustained by strong wholesale demand, e-commerce through T-Mall in China, and the contribution of 11 net store openings in 2022, bringing the total number of directly operated stores to 63 at the end of 2022. Zegna revenues by product line Zegna-branded product revenues were 274 million euros for the fourth quarter, down 2.7 percent, but up double-digit year-over-year excluding GCR, benefitting from the rollout of the One Brand collection in July 2022. Revenues for FY 2022 were 924 million euros, up 9 percent. Shoes showed strong performance throughout the year, while growth in the luxury leisurewear segment remained steady. Tailoring and made-to-measure both saw a strong rebound in 2022, especially in the U.S. and EMEA. Thom Browne revenues of 76 million euros in the fourth quarter, up 11.4 percent, bringing FY 2022 revenues to 330 million euros, up 25.3 percent driven by wholesale demand. Textile revenues were up 7.1 percent for the fourth quarter, reaching 38 million euros. Revenues for the year were up 33.8 percent to 137 million euros, with all the key subsidiaries experiencing healthy double-digit growth. Third-party brands revenues reached 18 million euros in the fourth quarter, down 18.8 percent, impacted by the termination of the Tom Ford International distribution licence which ended with deliveries of the FW 2022 collection, replaced by a supply agreement. Excluding this impact, third-party brand revenues were up by strong double-digits in the fourth quarter. Zegna expects the negative impact to be more than offset by the consolidation of the Tom Ford fashion business subject to and upon closing of the transaction with The Estée Lauder Companies, expected later this year. For FY 2022, third-party brands revenues were up 30.5 percent to reach 98 million euros, driven by higher Gucci orders and Tom Ford deliveries for SS22/FW22. Zegna revenue performance by core geographies Excluding the GCR, the group saw a 42 percent increase in revenues in FY 2022 driven by performance in Europe, the Middle East, and the U.S. Revenue growth was 24.7 percent in the fourth quarter, excluding the GCR. Activities in Europe, the Middle East, and the U.S. demonstrated the strongest growth in the fourth quarter. EMEA revenues in the quarter were 140 million euros, a 22.8 percent increase, of which the Middle East and Africa (MEA) region represented 24 million euros, a 34.9 percent growth, building on the region’s robust performance in the earlier quarters of the year. For FY 2022, EMEA revenues reached 520 million euros, up 36.8 percent year-over-year. Revenues from the Middle East and Africa (MEA) region constituted 69 million euros for the year, a 56.1 percent year-over-year growth. North America quarterly revenues increased 26.7 percent and amounted to 82 million euros, of which the U.S. made up 77 million euros, up 26.1 percent. Revenues in North America reached 295 million euros in FY 2022, up 54.1 percent, with the U.S. up 53.5 percent to 270 million euros. Group revenues in the GCR were down 30.3 percent, reaching 131 million euros. The decrease was 16.1 percent for FY 2022, with revenues of 494 million euros for the year. In FY 2022, DTC revenues for Zegna-branded products saw an 8.4 percent increase, reaching 773 million euros. DTC revenues for Thom Browne increased 5.1 percent to 146 million euros in FY 2022, pushed by high-double-digit performance in the U.S., EMEA, and Japan. The FY 2022 increases in DTC revenues come despite decreases of 6.2 percent and 10 percent for Zegna-branded products and Thom Browne, respectively, in 4Q 2022, as a result of the COVID-19 disruption in the GCR. For FY 2022, wholesale revenues reached 570 million euros, up 30.7 percent, with Thom Browne wholesale revenues growing 47.7 percent for the year to 184 euros and Zegna-branded product wholesale revenues growing 12.6 percent for the year to 151 million euros. In the fourth quarter, the group saw growth across the wholesale channel, with revenues totaling 132 million euros, a 16.1 percent increase. This is attributed to wholesale growth for Thom Browne of 62.4 percent during the quarter and consistent growth of 20.7 percent for Zegna-branded products during the quarter. At the end of FY 2022, DTC revenues represented 62 percent of total sales, down from 66 percent in FY 2021, as a result of the disruptions affecting the GCR, which is mainly a retail market.
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VIA Outlets reports record 2022 brands sales of 1.2 billion euros

Image: Landquart Fashion Outlet | Credit: Via Outlets European shopping mall operator VIA Outlets enjoyed a “record-breaking” year in 2022 with brand sales across its portfolio increasing 2 percent year-on-year to reach 1.2 billion euros. That figure was also 3 percent above pre-pandemic levels from 2019. The company, which operates 11 outlet shopping centres in nine countries across Europe, said visitor expenditure last year was 27 percent higher than 2019 levels. VIA Outlets CEO Otto Ambagtsheer hailed a “robust” recovery for the company in the wake of the pandemic. “As European tourism continues to slowly grow back to previous highs, we are hopeful that this will further bolster our centres’ already strong performance,” he said. VIA Outlets inked more than 300 remerchandising deals in 2022, welcoming a variety of new international brands. American Vintage, Sandro, and Maje at Batavia Stad Fashion Outlet, and Longchamp at Freeport Lisboa Fashion Outlet were particular highlights, the company said. A number of brands also upsized their footprints across Via Outlets’ store estate, including Lacoste (29 percent), Jack & Jones (12.7 percent), Guess (9.7 percent), Gant (8.5 percent), and Tommy Hilfiger (7.3 percent). The company said: “Remerchandising and attracting new and enticing brands are central to VIA Outlets’ ‘3Rs’ strategy of growth: a successful formula that has enabled it to continue to strengthen its premium fashion outlet offering across Europe.”
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GIZ coordinator: “Low labour costs alone will not guarantee Bangladesh's economic development”

Interview Werner Lange, GIZ cluster coordinator, Bangladesh. Image: Sumit Suryawanshi for FashionUnited What are the advantages of Bangladesh as a sourcing location, how has the situation changed since the Rana Plaza disaster and what does the future hold for the world’s second largest sourcing country? FashionUnited discussed these and other questions with Werner Lange, cluster coordinator at the German association for international development (Deutsche Gesellschaft für Internationale Zusammenarbeit GIZ GMbH) in Dhaka, Bangladesh as part of Made in Bangladesh Week. Could you describe your career path? What brought you from the German retail landscape to development work in Dhaka? I started my career at department store chain Karstadt and stayed there for more than two decades. In my late twenties, I gained first-hand experience with global sourcing markets as a central textile buyer. In my mid-thirties, I became purchasing director and ten years later, I was active at board level. After the merger of Karstadt and Quelle, I switched to the Metro subsidiary Adler Modemärkte and Charles Vögele Holding, which I left in 2012. It was more of a coincidence that GIZ approached me about the Partnership for Sustainable Textiles, which was founded in October 2014 and was looking for an industry insider as consultant. The task, as head of the secretariat, with my team, was to bring about an action plan that could be agreed upon by all interest groups. It was completed after about six months. I stayed on and continued at GIZ as cluster coordinator for the portfolio of textile projects in Dhaka, Bangladesh. From Bonn to Bangladesh is quite a jump. How did that happen? My wife and I have four children who are all very fond of travelling and living abroad - at times, none of them lived in Germany. Two of them were in Asia and we often visited them. My wife and I then also decided on Asia to live for a while. In addition, when I was young and working at Karstadt, I was already a central buyer and directly experienced the global advance of textile manufacturing and thus all places in the world where clothing can be produced – so I knew what I was getting myself into. Dhaka was the opportunity to make a difference, because Germany is the strongest export market and has a very large portfolio in development cooperation. This is incomparable worldwide and all relevant stakeholder groups are on site. What is the approach in Bangladesh? As a global service provider of international cooperation for sustainable development and international educational work, GIZ and its partners develop effective solutions that offer people prospects and permanently improve their living conditions. As a non-profit federal company, it supports the federal government and many other public and private clients in a wide variety of subject areas - from economic and employment assistance to energy and environmental issues to the promotion of peace and security. For the further development of Bangladesh, vocational training will expand our portfolio in the future. In Germany, the dual system of education is supported by companies and their chambers. There is no comparable infrastructure here. That's why we're trying to apply and develop elements of dual training as best we can. The local industry needs to get even more involved here. For example, we want to introduce occupational safety officers as a job description, but we are still in the conceptional phase. What has been the country’s growth since the Rana Plaza disaster? In the end, the terrible accident has had many positive side effects. The export companies have massively improved occupational and building safety. The buyers’ simple logic of “comply or you're out” has changed many things. There is no such thing as “the textile industry” in Bangladesh; the situation is more diverse - there is much more light and unfortunately there are still shadows. Too many factories do not yet meet the standards and government audits and controls needs to be improved. Although the Bangladesh Accord had to leave the country, its successor organisation RSC [RMG Sustainability Council] gives reason to be hopeful, because the local industry associations and unions are now sitting at the same table with the buyers and want to continue the Accord’s success. As the world's second largest clothing manufacturer after China, Bangladesh inevitably has the role of becoming a technology and innovation leader. The example of Turkey shows that garment production can eventually also lead to the manufacturing of textile machines. I see future potential for Bangladesh here. What are the advantages in Bangladesh? Bangladesh has the great advantage that with 165 million people, it has a large workforce that is willing and able to work. For further growth and foreign investment, it must be ensured that these people can work together under safe and fair conditions and with equal opportunities for men and women. Low labour costs alone will not guarantee Bangladesh's economic development. In cooperation with the Technical University in Dresden, Germany, the BGMEA’s Innovation Center is looking at the correlations between working conditions and productivity from a psychological point of view. Research findings from Germany show, for example, that the productivity of mixed-gender teams is significantly higher. The garment industry in Bangladesh was and still is in the limelight and consumers have now realised that a t-shirt for 2 euros cannot guarantee fair wages. But this also applies to other industries that are not yet on the radar. In your opinion, how will things develp in Bangladesh? Currently, the supply is still greater than the demand and foreign direct investments (FDIs) are not yet as numerous as expected because the issue of compliance still raises question marks. The question now is, with how broad a perspective do we look at Bangladesh, or do we continue to follow the same narrow and undifferentiated textile narrative?
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Vince Holding to appoint new CFO

Image: Vince, Facebook Vince Holding Corp., a multi brand fashion conglomerate, has announced its chief financial officer David Stefko will be retiring from his role and stepping down from the company February 10, 2023. Amy Levy, Vince’s current senior vice president, financial planning and analysis and investor relations, will succeed Stefko, who is set to remain with the company in an advisor role through May 2023. In a release, chief executive officer Jack Schwefel thanked Stefko for his eight years at the company, noting that he had been “instrumental” in leading Vince as interim CEO prior to his joining. Schwefel continued: “He had helped to transform our business and grow the Vince brand while developing a strong team of experienced leaders. We appreciate his continued support and guidance, and wish him all the best in his retirement.” The head also commented on Levy’s appointment, calling her an “integral part” of the company’s leadership team and crediting her with building a strong financial department. In her current role, Levy oversees multiple functions including Vince’s treasury, investor relations and finances for all facets of retail, wholesale and corporate planning. Prior to Vince, Levy served as a senior member of the finance team at Michael Kors, and also held a role on the finance team of Esprit.
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