Tag: Fashion

  • Asia-Pacific boosts Estee Lauder revenue

    Asia-Pacific boosts Estee Lauder revenue

    Estee Lauder Asia-Pacific sales achieved double-digit growth in the December quarter. The beauty giant says the growth was broadbased, with nearly half of the markets in the region growing by double digits. “China, Hong Kong and Japan continued to deliver strong growth, and Korea net sales accelerated. Prestige beauty in China accelerated and the company continued to build share,” the company said in a statement.

    “[We] generated double-digit net sales growth in virtually every major product category and channel. Operating income increased, primarily due to higher net sales.”

    Globally, Estee Lauder sales exceeded US$4 billion for the first time, up 7 per cent from the same time a year earlier. Net earnings rose to $573 million compared with $123 million last year.

    “We delivered an excellent performance in our fiscal second quarter,” said president and CEO Fabrizio Freda. “Importantly, this was our eighth consecutive quarter of impressive net sales growth that met or exceeded our long-term goal, all while navigating many global macro issues.

    “Our sustained progress is the result of our multiple engines of growth strategy, and demonstrates our agility in moving resources to the best global opportunities,” he said.

    The strongest growth engines during the quarter included the skin care category globally, the Estee Lauder Asia-Pacific business, online and travel retail channels, and most brands, including Estee Lauder, La Mer, Mac and the company’s artisanal fragrance brands.

    “Despite a volatile and challenging backdrop, we are optimistic about our company’s long-term outlook. We are very well-positioned to build share in global prestige beauty,” Freda said.

    “We plan to increase our investments during the next six months behind our successful innovations, high-quality products, compelling digital advertising and effective commercial execution, while also enhancing our capabilities to strengthen our industry leadership and deliver long-term profitable growth.”

  • Reliance India buys additional stake in Future101, Genesis Colors

    Reliance India buys additional stake in Future101, Genesis Colors

    Billionaire Mukesh Ambani-led Reliance Industries has raised its stake in luxury apparel firms Future101 Design and Genesis Colors to strengthen its foothold in retail industry. Reliance Brands Ltd (RBL), a unit of RIL, “has acquired a further stake of 2.5 percent in Future101 Design Pvt Ltd on February 7, 2019, for a consideration of Rs 1.99 crore, taking its total stake in Future101 to 15 percent,” the company said in a regulatory filing.

    According to a report, also, Reliance Retail Ventures Ltd (RRVL), a separate subsidiary of the company, acquired a further stake of 9.44 percent in Genesis Colors Ltd (GCL), for Rs 45 crore taking its total stake in GCL to 29.07 percent on the enhanced capital.

    “Consequently, the stake of RBL in GCL shall be 43.66 percent and the aggregate equity shareholding of RRVL and RBL in GCL stands at 72.73 percent,” it said.

    Reliance said the acquisitions will help it to strengthen its foothold in the retail industry and support its long-term strategy to enhance its value in the industry.

    No regulatory approvals were required for the acquisition of shares and the investment does not fall within related party transaction, it added.

    The company had in July last year bought 12.5 percent stake in Future101, which is engaged in manufacturing, distribution, and sale of luxury apparels in India, for Rs 9.50 crore.

    Future101 reported an annual turnover of Rs 22.18 crore in 2017-18.

    In September 2018, RRVL had acquired a 16.31 percent stake in GCL, which owns fashion label Satya Paul, for Rs 34.80 crore. RRVL, through unit RBL, already held a 49.46 percent stake in GCL.

    That month, RRVL invested a total of Rs 57.03 crore in five other companies that sell branded readymade garments, bags, footwear, cosmetics and accessories.

    It bought a 2.07 percent stake in Genesis Luxury Fashion Pvt Ltd for Rs 3.37 crore, taking its holding in the company to 49.37 percent. Genesis Luxury Fashion distributes premium brands such as Jimmy Choo, Armani, Paul Smith and Bottega Veneta.

    It also bought 50 percent stake each in GLF Lifestyle Brands Pvt Ltd and Genesis La Mode Pvt Ltd for Rs 38.45 crore and Rs 10.57 crore, respectively.

    Besides, it acquired 50 percent each of GML India Fashion Pvt Ltd and GLB Body Care Pvt Ltd for Rs 4.48 crore and Rs 16 lakh, respectively.

  • Foot Locker buys out Goat Group stake

    Foot Locker buys out Goat Group stake

    Specialty athletic retailer Foot Locker is making a US$100 million strategic minority investment in Goat Group, a managed marketplace for authentic sneakers operating the Goat and Flight Club brands. The partners expect to make joint efforts across digital and physical retail platforms to create exclusive experiences for their customers in an attempt to elevate customer engagement. The investment is also expected to help accelerate Goat Group’s global operations, expanding its omnichannel experience and innovative technologies.

    “At Foot Locker we are constantly looking at new ways to elevate our customer experience and bring sneaker and youth culture to people around the world”, said Foot Locker’s chairman and CEO Richard Johnson. “We are excited to leverage Goat Group’s technology to further innovate the sneaker buying experience and utilise their best-in-class online marketplace to help meet the ever-growing global demand for the latest product.

    “Together, Foot Locker and Goat Group’s shared commitment to trust and authenticity in the sneaker industry will provide consumers with unparalleled experiences and diversified offerings,” said Johnson.

    “In 2015, we pioneered the ship-to-verify model with a mission to bring a seamless and safe customer experience to the secondary sneaker market,” said Goat Group’s co-founder and CEO Eddy Lu. “With more than 3000 retail locations, Foot Locker will support our primarily digital presence with physical access points worldwide, bringing more value to our community of buyers and sellers. Having Foot Locker as a strategic partner will also expand our business as we continue to scale our operations both domestically and internationally.”

    Scott Martin, Foot Locker’s senior VP for strategy and store development, will join Goat Group’s board of directors.

    The Goat Group deal follows Foot Locker’s recent investments in innovative, digital-first companies including leading women’s luxury activewear brand Carbon38; tactical play and children’s lifestyle brand Super Heroic; and footwear design academy Pensole.

    Foot Locker’s investment will bring the total raised by Goat Group to $197.6 million since it was founded in 2015.

  • More about Japanese label HYKE

    More about Japanese label HYKE

    HYKE enjoys a massive following in its native Japan, slowly developed since its inception in 2013. Over the past six years the label, led by married designers Yukiko Ode and Hideaki Yoshihara, has cultivated a horde of Japanese devotees attracted to HYKE’s neutral color palettes, tweaked militaria and effortless elegance. This following has garnered stockists that include some of the nation’s largest department stores, like Isetan, UNITED ARROWS and the Japanese branch of Barneys New York.

    Despite the independent brand’s commercial and critical success in Japan, HYKE remained an obscurity to even the most fashion-savvy shoppers outside of Asia. That was until the brand’s collections with The North Face received such international acclaim that the partners created a dedicated Instagram page and website exclusively for the ongoing collaboration.

    Behind the covetable technical collaborations, however, the underappreciated Japanese label has quietly advanced its singular vision with a laser focus.

    In 1997, Ode and Yoshihara launched a vintage clothing store, dubbed “bowls.” “We would go buy only the best clothes overseas and then put our favorite items on display in the shop,” the designers told the Woolmark Company in August 2016. “When we found clothes we liked, we didn’t want to sell them to anyone else. We decided that we would instead make clothing that contained the essence of what we liked, and that’s how our first brand, green, started.”

    Veterans of two different Japanese fashion schools, Ode and Yoshihara spent time as a stylist and patternmaker, respectively, before opening the store and launching green a year later.

    Guided by the philosophy of beauty through functionality, green offered simple yet thoughtfully-crafted, vintage-inspired womenswear in an era that was not known for understated clothing. Though minimalist fashion is de rigueur now, early 2000s style was rife with loud party dresses, flashy logos and gold accents.

    Thus, green’s fur-trimmed parkas, relaxed denim and muted trench coats seem even more prescient when reexamined 20 years later. A growing demand encouraged Ode and Yoshihara to introduce a brief men’s offering alongside the more expansive womenswear line, eventually taking green to the runway for the label’s final season, Spring/Summer 2009.

    Following green’s tenth anniversary, Ode and Yoshihara shuttered the label in October 2009; by then green had ballooned from a small side project to one of Japan’s pre-eminent womenswear brands. The couple retreated from fashion altogether, taking several years off to reformat their approach to design and raise their two children. In doing so, the duo shifted bowls from a vintage boutique to a management company before debuting their new flagship label, HYKE, in 2013.

    HYKE thrived almost immediately, thanks to its appreciably clean, minimalistic designs and the accumulated green fanbase. Ode and Yoshihara aim “to evolve fashion history by our heartstrings,” recreating militaristic garments with custom fabrics. Though some clothes sport playful fringe or deep pleats, the basis of each collection remains the same: the couple sources key vintage pieces for inspiration — be it a classic M65 jacket or fishtail parka — deconstructs the garments to study patterns, threads and craftsmanship, before piecing them back together via contemporary pattern-making. Using simple, versatile colors and unparalleled craft, HYKE’s consistently wearable offerings prove reliably popular. This consistent demand encouraged both Mackintosh and adidas Originals to join forces with HYKE in 2014.

    The one-off Mackintosh collaboration yielded a workmanlike approach to reimagining the British heritage brand’s signature outerwear, with HYKE serving up four muted, militaristic iterations of three classic coats for both men and women. Meanwhile, the adidas Originals partnership continued until Fall/Winter 2016, with each season gradually expanding HYKE’s design ethos. A quick comparison of the first drop — minimalist Trefoil hoodies, army green pullovers and velcro-strapped adilette runners — to the final release — monochrome Seeulaters, faux croc skin adidas clutch bags, sporty capes and occasional snakeskin patterns — makes the evolution all the more dramatic. The success of these lines, as well as the continuing growth of the main line, helped Ode and Yoshihara win the 35th Mainichi Fashion Grand Prix in 2017.

    Both the Mackintosh and adidas collaborations received global releases, but the reception was muted in comparison to HYKE’s headline-stealing collaboration with The North Face. The collection debuted during HYKE’s Spring/Summer 2018 runway, immediately establishing an ideal marriage of HYKE’s minimalist taste with The North Face’s utilitarian gear, informed by the Japanese label’s desire to combine “the functionality of outdoor sports wear with the sensitivity of HYKE.”

    HYKE’s preferred army green, black and white color palette returned for the collection, along with playful snakeskin patterns and signature garments, like the cropped Bolero Jacket and solid-color pullovers. With each collaborative release since that first joint effort, the duo have introduced small expansions to keep the line fresh — oversized pullovers, sock-like sneakers and even menswear — while retaining much of the same elements from past drops. However, The North Face Japan’s complicated licensing prevents the collection from seeing worldwide release, despite the overwhelmingly positive international reception and the recent addition of menswear to the line.

    To make a complex issue very simple: America’s The North Face is a different company from Japan’s The North Face. In 1978, outdoors company Goldwin began distributing The North Face in its native Japan, eventually purchasing the exclusive Japanese (and partial Asian) TNF license from the American branch. This exclusive license still remains in Goldwin’s possession; thus, American The North Face products can’t sold in Japan and Goldwin’s The North Face goods can’t be sold outside of the island nation. Since HYKE x The North Face is produced by Goldwin, that means that distribution will likely never expand beyond Asia, unless the Japanese The North Face strikes a deal with its American counterpart, as Goldwin recently did with THE NORTH FACE PURPLE LABEL.

    Regardless of legal qualms, HYKE maintains a massive following in its native Japan, with a developing influence throughout Asia as Korean and Chinese retailers take note of the brand’s adaptable designs. And more The North Face collections will only aid HYKE in increasing its global presence. Although the license quagmire will keep those collaborations from being sold overseas, HYKE could potentially bring its in-house creations abroad. If savvy Western retailers snap up the Japanese brand’s minimalist wares, it may open the floodgates for future expansion — possibly even bending the rules for The North Face.

    After six years back in fashion, Ode and Yoshihara remain unflinching in their dedication to realize the identity they established with the launch of HYKE. With no desire to cut corners (or prices) on its detail-oriented Japanese expertise, the designers are in no hurry to broaden its global footprint, or even create a proper menswear offering. Next up for the brand? Perhaps HYKE will finally open a Japanese flagship store, a hard-won focal point in service of clientele who appreciate the label’s unwavering commitment to independence.

    HYKE x The North Face Spring/Summer 2019 drops February 6 exclusively at The North Face Futakotamagawa and Isetan Shinjuku before hitting other Japanese TNF outposts on February 16.

  • Luxury goes local as Chinese shoppers gravitate towards home-grown brands

    Luxury goes local as Chinese shoppers gravitate towards home-grown brands

    Affluent Chinese consumers have for years shown a preference for global, well-known brands and labels. But with growing sophistication in tastes and a penchant for unique styles, the well-heeled are now increasingly gravitating towards high-end Chinese designers.

    “While global forces will continue to impact China’s luxury market, domestically there’s this whole new wave [of Chinese designers] that is coming through and is transforming the market,” said Simon Tye, executive director of Hong Kong-based market research company Consumer Search Group (CSG).

    In a report released last month along with US and China-based public relations company Ruder Finn Group, CSG found that 74 per cent of affluent Chinese consumers are aware of at least one Chinese designer, and 45 per cent intend to buy more Chinese designs over the next 12 months.

    According to report, titled “The 2019 China Luxury Forecast”, a shift in purchasing attitude from buying to “show-off to outsiders” to a “reflection of personal taste” is evident in 76 per cent of Chinese consumers. These respondents said they buy luxury items that reflect personal taste, up by about 30 per cent since 2012, according to the report.
    According to Mintel China, another market research company, niche luxury brands are particularly popular among women between the ages of 20 and 24, who are single and have a postgraduate or higher degree.

    Karen Zhang, 24, a banking professional from Beijing, said: “I still like my Gucci and Dior bags, but nowadays I like to explore luxury brands that have interesting stories and doesn’t shout extravagance. I also like to buy products by Chinese brands that have a unique twist.”

    The growing interest in Chinese designers is illustrated by a fivefold increase in the number of such brands featured by Hong Kong-headquartered luxury goods store chain Lane Crawford in recent years, according to strategy consultancy OC&C. Comme Moi, a brand founded by Chinese model Lu Yan, is among the fastest growing brands in Lane Crawford stores in China.

    JNBY, regarded as the most commercially successful Chinese designer brand, has more than 1,500 stores worldwide. Angel Chen, known for her colourful approach to fashion and fusion of eastern and western aesthetics, is stocked internationally by 30 retailers, including Lane Crawford, Luisa Via Roma, H. Lorenzo and Dong Liang. She is part of the “new wave” making an impact locally and globally, according to CSG.

    Unlike traditional brands, which spend on large-scale marketing and advertising campaigns, these new brands rely more on their unique designs and the power of celebrities and “key opinion leaders” for publicity.

    “For instance, Chictopia, founded by a local designer, Christine Lau, offers innovative and high-quality products with a clear story theme for each season,” said Veronica Wang, associate partner at OC&C. “The brand is followed by a group of top local celebrities, such as Fan Bingbing and Angelababy, which helps to establish awareness among the young generation.”

    The brand launched an official website in 2016, which provides an online sales channel and allows for the sharing of the brand’s latest collections through WeChat.

    Wilson Li, 28, a Chinese designer, said: “This is a very interesting time [for Chinese designers] right now. Around 20 years ago, Chinese clothing companies produced items that were extremely cheap, and they didn’t care much about quality. But this isn’t the case any more.”

    Li said the US-China trade war was pushing the market to improve its offering: “The only way for Chinese designers and companies to break out is to improve their standards.”

    Li, founder and head designer at Wilson PK, is known for his innovative fabrics and creative knitwear. He said a growing number of Chinese companies had been investing more in research and development as well as quality control over the past 10 years, with the aim of shaking off the image being of “cheap”.

    His brand, which has been around for five years, can count celebrities such as American singer Lady Gaga and British musician Lianne la Havas as its fans.

    “For custom fashion pieces, which are priced between US$960-US$3,830, we usually reach our target consumers through our online look book and stylists,” said Li. “Mass market customers can shop the ready-to-wear collection on our website, with prices starting from US$50.”

    Li, a fashion design graduate of Central Saint Martins Art and Design College, added: “Nowadays, Chinese consumers don’t just want luxury, they want the stories that come with it.”

    Industry experts say it is important for niche luxury brands to maintain a sense of exclusivity and rarity through storytelling. Scarlett Zhao, associate research analyst at Mintel China, said: “Niche brand lovers tend to be better informed and are willing to pay more for a brand’s unique meaning.”

    According to these experts, the biggest competitive edge Chinese designers have is their understanding of local preferences. And according to Wilson PK’s LI, while it is too early for local designers to be considered as rivals to established global fashion houses, there are more opportunities for Chinese brands in the current market.

    “Let’s be honest, calling it a competition would be too difficult. But as a Chinese designer, I definitely want to liberate my own culture,” he said.

  • Gucci unveils fragrances collection ‘The Alchemist’s Garden’

    Gucci unveils fragrances collection ‘The Alchemist’s Garden’

    Gucci has revealed its luxury fragrances collection – The Alchemist’s Garden – with oud, amber, violet, iris, mimosa, rose and woods as the seven scents. The Alchemist’s Garden collection has seven scents – oud, amber, violet, iris, mimosa, rose and woods.

    The design of the bottles is inspired by vintage apothecary, pharmacy jars and the first perfumery containers, resonating with the nostalgic theme of the collection. All the bottles are white except for oud, which is black, and rose, which is in a shade of blue chosen by Michele.

  • From Gucci to Dolce & Gabbana: racism in fashion continues?

    From Gucci to Dolce & Gabbana: racism in fashion continues?

    Luxury fashion is all about breaking codes, creating a new, irresistible message that captivates consumers. But some of the globe’s top brands have raised eyebrows with designs that have seemingly racist undertones. The latest instance of that was Italian fashion designer Gucci, which produced a black wool balaclava jumper with an oversized collar that pulls over the chin and nose. It includes a slit where the mouth is, ringed with what look like giant red lips.

    Its similarity to blackface prompted an instant backlash from the public and forced the company to apologise publicly on Wednesday.

    Gucci also withdrew the offending garment from sale on websites and stores. It said the incident would be “a powerful learning moment for the Gucci team and beyond”.

    But the question persists: how can fashion houses that thrive on detail miss such critical social cues?

    Prada similarly withdrew a monkey bag charm that recalled blackface in December, saying it “abhors racist imagery.” And Dolce & Gabbana issued a video apology after one of the designers made insulting remarks about Chinese people in a private chat discussing the questionable depiction of a Chinese model in a campaign.

    “Luxury brands used to be able to get away with provocative and eccentric ads that push the boundaries of our society and culture in the name of being creative and cutting edge,” says Qing Wang, a professor of marketing at Warwick Business School in the United Kingdom.

    “However, a long list of recent incidents have caused public outrage, suggesting that era is now gone, or that luxury brands have lost touch with public sentiment. What used to be considered ‘creativity’ has now turned into ‘bad taste’ or even ‘racist’.

    He cited other fashion fails that evoked stereotypes, including Dolce & Gabbana’s “slave sandal” in its spring-summer 2016 collection and a recent Burberry campaign for the Chinese New Year that was compared to Asian horror films.

    While many of these incidents have caused immediate social media backlashes, the longer-term impact will take time to measure, and will depend on the brands’ reaction and future sensitivity.

    Dolce & Gabbana was forced to cancel its Shanghai runway show after the insulting remarks were publicised, top Asian influencers backed out of campaigns and Chinese websites dropped their line – a warning sign from a region that holds great sway in global luxury sales.

    The blackface images have particular resonance in the United States, where the governor of Virginia and his attorney general have been caught up in a scandal over blackface incidents from their college days in the 1980s. The offensive depictions are reminiscent of travelling entertainers from the 19th century, who would paint their faces black to portray African characters in a ridiculous and mocking fashion, spreading racial stereotypes along the way.

    Italian sociologist Michele Sorice at Rome’s Luiss university says that the evocation of blackface by Italian fashion houses signals “a mixture of good faith, and ignorance”. He notes that Italian society still isn’t fully aware of the racial charge in some words and images.

    “I imagine that they don’t truly think they are racist,” Sorice says. “I think they didn’t have the instruments to understand that these images are archetypes that were used to contrast the concept of blackness and make them ridiculous. I think that many simply don’t know. It is a cultural issue.”

    Paolo Cillo, a marketing professor at Milan’s Bocconi University, says the designer’s intent may have been taken out of context and amplified, and she credits Gucci with acting swiftly to quell the controversy.

    “I wouldn’t stigmatise fashion,” Cillo says, comparing the fashion designer process to artistic pursuits like filmmaking, painting or music. “There are artists in the world of culture that did more outrageous things and no one ever said a thing. There is a perception that fashion is ephemeral, or commercial. But from my point of view, it is not. It reflects the times, like all other artistic forms.”

    While the fashion world has been at the forefront of addressing sexual norms – Gucci has been redefining genderless dress codes under Alessandro Michele – it has lagged behind other industries in taking on social issues such as racial tolerance, climate change or women’s empowerment, according to Larry Chiagouris, a marketing professor at Pace University, US.

    “It is not clear why this is,” Chiagouris says, “but the evidence clearly points to the fashion industry’s need … to catch up with the rest of the world.”

  • The Shoppes at Marina Bay Sands hit record high in 2018

    The Shoppes at Marina Bay Sands hit record high in 2018

    The Shoppes at Marina Bay Sands has capped its most successful year ever, breaking revenue records in 2018 and strengthening its leading position as the luxury shopping destination in Singapore. The luxury mall, which enjoys an occupancy of 95.4%, rang in a record mall revenue of US$179 million last year, a 7 per cent rise against the same period in 2017 – by far its best performance since opening. In 2018, retail tenant sales at The Shoppes jumped 19 per cent to US$1,898 per square foot from the preceding year.

    The Shoppes also kept its top position in tourism shopping, capping a record year to represent an estimated 25 per cent of the tax-free tourist market in Singapore. This is based on industry metrics that track tax-refunded tourist receipts.

    John Postle, Senior Vice President of Retail, Marina Bay Sands, said, “2018 has been an exceptional year for the mall, as we not only achieved our highest sales revenue in history, but also solidified a leading position in tourism shopping. This is so rewarding, given the competitive retail landscape and growth of online shopping.”
    The performance is also the result of an ongoing retail remix strategy that started in 2012, which saw the mall double its footprint with luxury brands in the form of duplexes, as well as expansion into luxury childrenswear.

    This strategy, coupled with attractive programming such as late-night shopping, in-store exclusives, and one of the most generous loyalty programmes in Singapore, has resulted in 120,000 shoppers walking through the doors of the mall daily. This includes locals as well as its biggest tourism markets of China, Indonesia and Japan.

    Jan Moller, Country Managing Director, Singapore & APAC Sales, Global Blue, said, “As one of Asia’s leading shopping destinations, The Shoppes at Marina Bay Sands continues to outperform other luxury malls in Singapore to own the greatest share of inbound tourist spend in the luxury sector in 2018.”

  • Chinese demand for skincare products boosts sales of French cosmetics company L’Oreal

    Chinese demand for skincare products boosts sales of French cosmetics company L’Oreal

    Strong Chinese demand for luxury skin creams helped Lancome owner L’Oreal beat sales forecasts in the fourth quarter, as did a pickup in its lagging mass market division. Like rivals including US-based Estee Lauder, the French maker of Maybelline and Urban Decay make-up has thrived on strong demand from Chinese shoppers in recent years, especially for its higher-end products.

    Sales of L’Oreal’s top-flight brands exceeded analyst expectations in the last three months of the year thanks to this market, despite cooling economic growth in China, and fears over a Washington-Beijing trade war.

    Some heavy-hitters in the luxury fashion industry, such as LVMH’s Louis Vuitton, have also reported encouraging momentum in Asia. At L’Oreal Asia-Pacific overtook North America as its biggest region last year.

    But L’Oreal, which is due to detail its results at a news conference on Friday, also faces a challenge to keep improving revenue growth in other areas, including its consumer products unit, home to brands like Garnier shampoo.

    Sales rose 2.8 per cent in that division on a like-for-like basis in the fourth quarter, which strips out currency effects and acquisitions, up from 2.3 per cent a quarter earlier.

    That helped boost overall sales at the firm, up 7.7 per cent like-for-like and head of forecasts for a 6.4 per cent rise, and which came in at 7.1 billion euros ($8.1 billion).

    Yet the mass market segment still slightly lags the performance of peers like Nivea-maker Beiersdorf and Dove soap owner Unilever.

    L’Oreal said it was also facing a sluggish market in France and the United Kingdom.

    While the latter only makes up around 3 per cent of sales, the company has joined others in preparing for Britain’s potentially chaotic exit from the European Union, and has started stockpiling cosmetics.

    The company said it still expected to outperform the broader beauty market in 2019, though the tone of its outlook was a tad less bullish than last year, forecasting “growth in both sales and profits” rather than “significant growth”.

    For 2018 as a whole, the company’s operating profit rose 5.3 per cent to 4.7 billion euros, giving a margin of 18.3 per cent of sales, up from 18 per cent at the end of 2017.

    One of L’Oreal’s biggest shareholders with a 23 per cent stake, Switzerland’s Nestle, has come under pressure from an activist investor to sell off its stake in the French cosmetics firm. The firms have yet to signal whether such a move was in view.

  • The shares of Lululemon athletica have risen 90% in 2018

    The shares of Lululemon athletica have risen 90% in 2018

    Over the past 12 months, shares of lululemon athletica have risen 90%. The most recent surge came after an upgrade on 2018 holiday season guidance, helping the athletic-wear stock rebound from a slump brought on by a broad stock market sell-off at the end of the year. Lululemon has enjoyed several tailwinds. Athleisure (that is, activewear and sports-inspired clothing for all situations) has continued to grow in popularity, and consumers have been generously spending — to the tune of 4.9% more on clothing alone in 2018, according to the U.S. Census Bureau. After a blockbuster run, though, Lululemon may have a difficult time repeating that same success in the new year.

    It is easy to see why shares of the clothing company have come roaring back. During the all-important holiday shopping season, management updated revenue guidance to between $1.14 billion and $1.15 billion, up from previous guidance of $1.12 billion. Earnings per share also got an upgrade to a range of $1.72 to $1.74, up from a range of $1.64 to $1.67.

    The results are impressive, but Lululemon has been measured by how it approaches expansion. Through the third quarter of 2018, there were 426 physical stores, up a net 22 from the start of the year. Instead of growing primarily by new openings, the company has instead benefited from a surge in same-store sales at existing stores — which increased 6% during the third quarter — as well as directing traffic to the online store. Direct-to-consumer sales were 25.3% of revenue in the third quarter, compared with 21.2% in the same period in 2017.

    Lululemon is not alone in the athleisure-wear category, though. Gap and its Old Navy and Athleta brands continue to grow their presence in sportswear, and the largest sports-only chain, Dick’s Sporting Goods, has also launched its own branded lines of clothing. Yet in spite of the competition, Lululemon has continued to resonate with new and existing buyers, both here in the states and abroad.

    The maker of stretchy pants and other sports-inspired clothing could nevertheless continue to run higher. After all, Lululemon has momentum on its side, both on the top and bottom lines. Even should sales growth take a breather, management has said it thinks gross profit margin on product sold could continue to expand, especially as a result of the emphasis on direct selling online and new higher-margin products such as coats and sweaters.

    On the other hand, there is reason for investors to give pause before jumping on the bandwagon. Even after earnings nearly doubled in 2018, the stock still trades at a premium, largely because share performance matched that of earnings. The trailing-12-month price-to-earnings (P/E) ratio currently sits at 52.5, a metric that only slightly improves to 43.2 when using free cash flow — a better measure of profitability, as it factors only for basic operating expenses and capital expenditures and excludes items such as depreciation and amortization.

    On a one-year forward basis, the P/E is currently at 40. Paying for decades’ worth of profits that haven’t yet been realized only makes sense if the bottom line continues to expand at breakneck speeds, and that’s what is implied in the rich valuation. Thus, there’s little room for error, and if there’s any slowdown at Lululemon, the stock could suffer losses at current levels.

    Of course, for those looking to the long term, Lululemon looks like a solid bet on the apparel industry of the future. Nevertheless, after renewed investor optimism over new fourth-quarter guidance, the stock is too rich for my taste.

  • Loewe launches outdoor menswear collection

    Loewe launches outdoor menswear collection

    Inspired by the great outdoors, Loewe has launched a new permanent collection of functional clothes and accessories for men. The campaign features British actor Josh O’Connor in the wilds of Cap de Creus, Spain. Loewe has launched a great outdoors-inspired collection of functional clothes and accessories for men. Featuring a wide range of vibrant colours, the collection – Eye/LOEWE/Nature – makes use of recycled materials, adding an innovative touch to conventional apparel.

    The ready-to-wear collection includes jumpers knit from partly recycled cotton fibre, parkas made of technical material, outerwear, shirts, trousers and cargo shorts.

    The accessories, manufactured in Japan, boast exclusive technology. Hand-sewn from quality canvas with calfskin trim, the Eye/LOEWE/Nature backpacks come with extra cushioning and support. There are interior zip pockets in which iPads can be stored. There are also tote bags and sling sacks for men to choose from.

  • V-Mart reports 27 percent growth in topline, reaches 200-store milestone

    V-Mart reports 27 percent growth in topline, reaches 200-store milestone

    V-Mart Retail, India’s leading value fashion retailer,  announced its unaudited financial results for the quarter and nine months ended 31st Dec,2018 whichwere approved by the Company and Board of Directors at its meeting held on 5th Feb, 2019. The company posted robust numbers for the third quarter, recording 27 percent YoY growth in revenue from operations, 15 percent increase in EBITDA and same store sales growth (SSSG) of 11 percent. The quarterly revenue and EBITDA stood at Rs 4658 million and 733 million, respectively, up from Rs 3680 million and 640 million in the previous year. The strong topline growth was also mirrored in PAT, which at Rs 417 million, delivered 14 percent YoY growth.Festive season shopping – comprising Durga Puja, Diwali and Chhath – in the company’s main geographic markets was the primary growth driver for the quarter. In the 69-day duration from 6th Sep – 13th Nov spanning the three festivals, the company registered overall and like-to-like growth of 49 percent and 27 percent, respectively. This was achieved through revamped product assortment, supply chain, and marketing and sales strategies that the company executed effectively. The company has invested in ramping up its warehousing capacity and strengthening the talent pool at all levels.

    Riding on the back of healthy numbers in Q3, V-Mart continued to strengthen its performance for the fiscal year. On a YTD basis, revenue stood at Rs 10,892 million for the nine months ended 31st Dec, growing at 18 percent YoY, while EBITDA and PAT, at Rs 1127 and Rs 625 million, grew at 3 percent and 1 percent, respectively.

    Commenting on the company’s performance in Q3, Lalit Agarwal, CMD, said “There has been a great execution of fresh product ideas and customer connect which was amplified by strong festive demand in all our markets. V-Mart was well prepared and well-positioned to tap into this opportunity in all its key markets, delivering its value fashion promise with a wider and deeper assortment that resonated with the fashion aspirations of our customers. Launch of stores in Assam and Meghalaya further added the growth momentum for the company and the company witnessed its best ever Durga Puja sales during the quarter especially from the Bengal region. We thank all our valued customers for their trust and belief in V-Mart and look forward to their continued support.”

    While driving a strong execution focus during the festive season, the company maintained its consistent pace of retail network expansion, reaching the 200-store milestone in December. V-Mart opened 10 new stores during thequarter, andon a YTD basis, has added 29 stores with more launches planned in the last quarter. While the company took 12 years to open its first 100 stores, the journey to the next 100 has taken less than 3 years. Looking ahead, the company is building a strong pipeline of locations for targeted store expansion in the next fiscal year.

    For the upcoming Spring-Summer 2019 collection, the company shall be launching a new range of Indigo collection denims, camouflage, high fashion t-shirts, joggers, ladies tops, salwar suits, gowns, solid woven skirts for girls and kurti’s along with a new kids summer collection. The launch of summer collection and the special marriage range, with an emphasis on vibrant colors and silhouettes willgive shoppers a wide choice of fabricsand form key customer-centric highlights of the next quarter.

  • Luxury brands open stores in Ambience Mall India

    Luxury brands open stores in Ambience Mall India

    Ambience Mall, Gurgaon, with some of the biggest food and fashion brands such as H&M, Gap, Zara, Marks & Spencers, Kiko Milano, Luxe Bridge, Iconic, Da Milano, Jack & Jones, Cover Story, Ritu Kumar etc, is the perfect destination for shoppers of all age groups. To augment its standing as the numero uno, two more luxury brands Ted Baker and Hackett London have opened their stores in the mall recently.

    British clothing and accessories brand Ted Baker known for designer apparel and signature tailoring opened its latest store at the Ambience Mall, Gurgaon. The store is equipped with glamorous interiors and tons of charm. The brightly-lit store will house their wide range of both menswear and womenswear. Ted Baker is a mainstay for every stylish wardrobe with a collection of bright dresses, tops, menswear, luxe accessories and add-ons.

    Located adjacent to the Ted Baker store, Hackett London is a multi-channel British menswear retailer, specialising in vintage clothing for men. As the official couturier for the British Army Polo team, the Henley Royal Regatta, the BAFTA awards and Aston Martin Racing, Hackett London is steeped in Britain’s rich sartorial heritage. With a wide repertoire of fine casual and formal clothing the store is a niche addition to the malls offering.

    Speaking on the store launch, Arjun Gehlot, Director, Ambience Malls, said, “We are delighted to have some of the best international fashion luxury brands Ted Baker and Hackett London in our mall. This is part of our commitment to offer International and Domestic premium quality brands to our customers under one roof. We will continue to bring best quality brands in the future as well.”

    The Ambience mall with the best offers in shopping, entertainment and culinary offering under its roof is the definitive favorite of shoppers looking for premium international and domestic brands. With an eclectic mix of top international and Indian clothing brands to cater to all age groups, wide array of entertainment options and unique decorative concepts that is constantly refreshed in-tune with changing seasons and festivities, the Ambience Mall, Gurgaon has indeed cemented its place as the perfect destination for shopping enthusiasts and thrill seekers in Delhi-NCR.

  • DFS Changi celebrates lunar new year with offers

    DFS Changi celebrates lunar new year with offers

    DFS Group, the world’s leading luxury travel retailer, is celebrating Lunar New Year 2019, ‘The Year of the Pig’ with a series of exciting promotions, exclusive offers, personalization services and interactive activities at DFS, Singapore Changi Airport.

    Until 19 February, DFS has partnered with Moët Hennessy to celebrate the new year festivities with an exclusive Hennessy pop-up store at Changi Airport, the only one of its kind in the global travel retail sphere. Offering interactive consumer experiences and tastings, the pop-up features Hennessy’s first ever engraving station in travel retail for travelers who wish to add a personalized touch to their bottles. Hennessy partnered with contemporary artist, Guang-Yu Zhang to create an exclusive art piece, incorporating the zodiac symbol of the boar and Hennessy’s double distillation process. The artwork is featured on limited-edition festive packaging for Hennessy XO, Hennessy VSOP and James Hennessy.

    “Lunar New Year is one of the world’s most celebrated festivals and is a time for family, friends, giving, happiness and good fortune. As we welcome the Year of the Pig, we thank our loyal customers and look forward to welcoming new traveling customers to a luxurious shopping experience that only DFS can offer. Our Lunar New Year campaign enhances the pleasure of giving by offering an array of DFS exclusive products – for customers to show appreciation to loved ones or treat themselves to something extra special at this special time,” said Ariel Gentzbourger, DFS Group Executive Vice President Merchandising.

    Exclusive and limited-edition products available at DFS Changi include the Macallan Concept No.1, an Asia First Launch, the limited-edition Benedictine Dom Chinese New Year tin and the limited-edition Royal Salute 21 Year Old. All products are also readily available on www.iShopChangi.com, where travelling customers can browse and purchase products from 18 hours to 30 days before their flight. Purchased products can be collected at the departure terminals or arrival halls. Travelers can enjoy 10 per cent discount when they check out with the ‘CHEERS10” promocode now through until 31 March 2019.

    In preparation for festive feasts and celebrations, travelers arriving in Singapore during the festive period can enjoy an unlimited purchase of wines and champagnes. By absorbing all duties and taxes, DFS allows customers to purchase as many bottles as they wish from an extensive collection at an affordable price. Products range in cost and variety and start from as little as S$25, with travelers enjoying savings of up to 70% versus domestic prices.

    From now through 4 February, travelers at Changi Airport can try their hand at winning a 999 Pure Gold Bar (10 g) by playing the exclusive ‘Fortune Catcher’ claw machine. Located in each DFS departure store, travelers are able to use vouchers to play the claw machine – that offers an array of prizes with a minimum purchase of S$168 in store.

  • Giorgio Armani open first pop up store at DFS Hong Kong

    Giorgio Armani open first pop up store at DFS Hong Kong

    Giorgio Armani Beauty is starting the year of 2019 strong by collaborating with DFS on celebrating Chinese New Year. In January, Giorgio Armani Beauty launched its first Chinese New Year pop-up stores at T Galleria Beauty By DFS, Causeway Bay and T Galleria By DFS, Canton Road respectively. Iconizing the brand’s 3 star products – the legendary Lip Maestro, the iconic My Armani To Go Cushion Foundation and the new bestselling fragrance – Sì Passione, the pop-up stores reflected Armani’s commitment to modernity whilst celebrating the traditional festival with the Asian consumers.

    A UNIQUE BEAUTY EXPERIENCE Visitors were able to indulge themselves in a unique Armani Beauty experience under the Chinese New Year festivity. They discovered New Year fortune and recommended Giorgio Armani Beauty products through the in-store digital app, try their luck on the app and receive attractive gifts upon purchase; and completed their memorable experience by getting the exclusive gift set of the 3 star products featuring My Armani To Go Cushion Limited Edition “Cushion Couture”. Customers also enjoyed professional make up consultation by Giorgio Armani Beauty Face Designers.