Valentino Fashion Group`s huge profit gain Benetton

INDEX
pambianco ANALYSIS
3 Listed Fashion Companies exceed 100
billion euro turnover
LEADERS
5 Renzo Rosso: the future between luxury
and Second Life
FASHION STOCKS
11 Stock Market Crisis Sparks Slight Tumble
in Pambianco Index
ITALY
13 Benetton Group revenue growth up 12%
13 Valentino Fashion group’s huge profit
gain
14 Burani targets a billion
14 Max Mara, Maramotti scores a double
(Corriere della Sera)
14 Ferretti and Marithé François Girbaud
create Giraffe
15 Work starts on Breganze Diesel Village
15 Artemide, 15% increase in turnover (Il
Sole 24 Ore)
16 Replay e Procter & Gamble make
perfume together
16 Ferragamo: Cristina Ortiz named
creative director of women’s ready-to-wear
EXCLUSIVE INTERVIEW
17 Bottega Veneta, true luxury is no-logo
REST OF THE WORLD
19 Adidas takes on Nike (CorrierEconomia)
19 Hugo Boss: sales up by 11%
19 Swiss Made gets tougher rules (Il Sole
24 Ore)
20 Crocs add new apparel line
(Corriere
della Sera)
Top Stories:
Renzo Rosso
Below:
Stefano Sassi,
Patrizio Di Marco,
Piero Lissoni
20 Swatch: strong growth in first half year
21 Kenneth Cole: second quarter results
slightly down
21 Esprit net profit up by 27%
21 Gap’s profits rise
21 Vogue takes its glamour to India
22 Carrefour challenges Zara
22 Guess, Second quarter 2007 revenues,
increase of 48%
13
14
M&A
23 Aicon acquires Sicily’s Morgan Shipyard
23 Luxottica gets the go-ahead to purchase
Oakley
23 Hermès acquires Soficuir
SHOP OPENINGS
24 Espressamente Illy to open 105 coffee
shops in China (Il Sole 24 Ore)
24 Marlboro Classics open in Kiev
24 Audemars Piguet conquers Ginza
25 Prada strengthens its retail presence in
China
25 Nike and Adidas open in Beijing
25 First flagship store Miss Sixty/Energy in
New York
15
20
ADS & EVENTS
26 Armani Lounge for Chelsea Football
Club
26 Julian Schnabel awarded the 2007
Gucci Group Award
27 New Guess Campaign prompts
oriental reflections
27 Gorbachev is the new face of Louis
Vuitton
21
DESIGNERS
28 Piero Lissoni, the designer who never
wants to grow up
23
Enclosed to issue #15 of Pambiancoweek
Milan Court Register no. 344 of 2/05/2005
Editor in Chief: David Pambianco
Editorial Staff: Chiara Dainese (Responsabile), Paola Cassola, Claudia Cogliandolo, Rossana Cuoccio
Contributors: Alessio Candi, Mai Esteve
Advertising: Lia Lasagna (Responsabile), Maureen Punzina
Subscriptions: Alessia Cappelletti
Editor of the magazine: Pambianco Strategie di Impresa S.r.l., Corso Matteotti n. 11, Milano
Contacts:
Editorial Staff: [email protected] -+39 02-76388686
Advertising: [email protected] - +39 02.76388600
Subscriptions: [email protected] - +39 02.76388600
TOP STORIES
2006 FINANCIAL STATEMENTS OF THE TOP 35 LISTED FASHION AND LUXURY COMPANIES
Listed Fashion Companies Exceed €100 Billion Turnover in 2006
Luxury markets continue to roar, recording an
excellent 2006 yearly performance both in terms of
turnover and profitability.
The report comprises profiles of the 35 top listed
international companies, recording a turnover of
13.5% (€97 million), with an average Ebitda of 19%
(€18 billion) and an 11% profit of €10.6 billion.
More than half of these companies have a yearly
turnover of more than €1 billion. In pole position,
is the French luxury goods holding company, Lvmh
whose business turnover was in excess of €15 million.
The average yearly turnover of these companies
is €2.8 billion. However, the Italian companies
are responsible for lowering this turnover average
(€950 million), which would otherwise amount
to €4.1 billion. The profit earning capacity of the
Italian companies is responsible for this difference
in yearly turnover; they have an Ebitda of 17.3%, 2
points lower than the other ‘non Italian companies’
listed. It is also surmised that the business turnover
of these companies greatly influences profit margins.
Worthy of note is the fact that Italian companies
pay an average 3.5% tax, whereas the other ‘non
Italian’ companies pay 4.7%.
Despite different growth trends, the Italian and
non-Italian companies both achieved excellent
growth turnovers.
The 15 Italian companies documented in this report
were up 10.6% generating a turnover of €19.9
billion in 2005 and €14.3 billion in 2006. Excellent
performance by Geox and Antichi Pellettieri
(recently a listed company) reported a 35% and
a 62% increase (buoyed by various acquisitions)
in business turnover respectively. Before Antichi
Pellettieri became a listed company, Giovanni Burani
explained “being a listed company will allow us to
grow and become more powerful. We will use IPO
returns to open around 125 to 150 stores within 3
years, most importantly in Russia, Middle East and
Asia”.
In pole position with the highest revenue turnover
is Luxottica. The acquisition of Oakley has
enabled them to gain a leading position among
the 6 international listed fashion companies such as
Richemont and Vf Corp.
Valentino FG (recently bought by Permira) and
Benetton are in second and third place respectively
with an annual turnover of €2 billion. Although
not anywhere as successful as Luxottica, they
both reported a growth trend of 13.6% and 8.3%
respectively
Valentino FG noted that determining factors for the
2006 growth performance were brand extension
and the opening of directly operated stores.
Benetton
confirms
that
excellent
growth
performance was a result of their adults and children
collection, including Sisley and Sisley Young.
2006 company report for the 35 top listed fashion
and luxury markets
Excellent growth performance for the 20 non-Italian
listed companies, recording an average turnover
growth of 14%.
Best performers were active wear companies, Puma
Italian listed companies
Top 5 - best turnover performance for 2006
Group
Turnover
Luxottica
4.676
7,0
Valentino FG
1.963
13,6
Benetton
1.911
8,3
Safilo
1.122
9,4
Bulgari
1.010
10,0
Million of euro
Turnover growth %
Pambianco financial statements
LUCIANO and ALEssandro
BENETTON
FRANCESCOTRAPANI-bulgari
21/09/2007
TOP STORIES
International Listed Companies
Top 5 - best turnover performance for 2006
Group
Turnover
Lvmh
15.306
10,0
Nike
12.081
4,0
Adidas
10.084
52,0
Inditex (Zara)
8.196
21,6
H&M
7.545
17,3
Million of euro
Turnover growth %
Pambianco financial statements
Herbert Hainer - ADIDAS
(+33%) recently acquired by Italy compared to the rest of the world
PPR, and which already controls
Gucci Group) and Adidas, which
Growth.
Turnover
Ebitda
%
net Profit
%
recorded a 52% growth increase,
%
buoyed by the acquisition of
Reebok, which has enabled the Italy (15 Groups)
14.262
10,6
2.468 17,3
1.057 7,4
company to gain a leading position
82.452
14,0 15.930 19,3
9.587 11,6
in the US sports and lifestyle Rest of the World (20 Groups)
market, in particular, basketball
96.714
13,5 18.398 19,0
10.645 11,0
and fitness. This strong turnover Total (35 Groups)
growth rate is crowned by its Million of euro
Pambianco financial statements
strong showing at the World Cup.
The Company forecasts sustained growth
performance for 2007 thanks to future
investments with the approaching of the
Beijing Olympics.
Puma, on the other hand, continues to be
successful thanks to its expansion in new
territories such as Taiwan, China, Hong
Kong, Argentina, Mexico and Canada.
Behind Lvmh, in terms of sales success, is
active wear companies, Nike and Adidas.
With Lvmh in pole position, Nike is in
second place, reporting sales of 12.1 billion
and Adidas, in third place, reported sales
of 10.1 billion.
Other best performers were InditexZara (operating some 3,200 stores)
and H&M who has taken the world AMANCIO ORTEGA - INDITEX
BERNARD ARNAULT - LVMH
by storm, targeting large street frontstores in major metropolitan areas, selling at performance. 2007 looks bright for the fashion
competitive prices and recording excellent growth sector predicting excellent results.
NB: Aeffe was included in the report even though il will not be a listed company until July.
To obtain a complete list of individual company profiles and information regarding growth performance, returns and profits, please
contact Claudia Cogliandolo at [email protected] or phone +39 02 7638 8600.
21/09/2007
Renzo Rosso,
52 years,
President
of Diesel
Leaders
Renzo Rosso - President of Diesel
I think of the brand
and the creativity.
And the rest?
I leave that to the managers
l
e
s
e
i
D
(
)
The Future between
Luxury and Second Life
It’s located in the industrial area at the gateway to Molvena, among a swarm of light-coloured industrial hangars,
the symbol of the small enterprise that has enriched Veneto
and Italy, in a road aptly called ‘Via dell’Industria’, without too many signposts. The headquarters appears when
you least expect it. Almost a replica Lego railway station of
West America, the stuff of 1970 electric train sets, complete
with a lofty totem pole covered in historical Indian design
and the slogan “Only the Brave”, which is also the name of
the group’s holding company. Above, huge letters announce
Diesel Industries. Below, on the pocket of grass in front of
the offices, a few youngsters lounge, employees in thong
sandals and T-shirts on their coffee break. Past the entrance,
beyond the reception, a reconstructed saloon, naturally. And
then, rooms and people so easy they seem on vacation; up
the stairs we trot to Renzo Rosso’s floor.
We wait for him in an office that is almost an attic, more like
a den, a retreat for body and mind, with its workout bench,
hundreds of photos, statues big and small, an array of objects
collected over the years and, on the walls, five original silk
screen prints of Mao Tze Dong signed by Andy Warhol. And
everything seems like a game, so much so that the tie worn
by this guest - probably the only tie in the whole building
– starts to feel too much like a work object.
21/09/2007
Leaders
Diesel S/S 2007
Campaign
Then Rosso arrives and one look at him is enough to
see that clearly the things done here are anything but
a game. For the founder of the world’s most famous
jeans brand today, for the man that has known how
to create a way of life around a name that recalls
the image, not of fashion but of diesel engines, it
seems that there is no time to stop and say “hey
I’ve arrived”. The projects are still many and still
ambitious. Above all, body needs to be given to the
brand’s umpteenth rise to the top, to be made only
by keeping the relationship with the base strong and
steady: that “DNA of freshness and modernity” that
has enabled Diesel of Molvena, Vicenza, a company
of the class of 1978, to cross the one billion euro
sales threshold two years ago and to power last year’s
sales to euro 1.18 billion. Another stride forward at
these levels means one needs to have a very clear
project in mind. And believe in it. Diesel is on the
quest for a delicate balance between growth and
tradition. A tough concept, easily misleading. As can
be understood from the way Rosso’s pale blue eyes
scrutinise whoever asks him about the future. As if to
say: it’s a key moment for Diesel, so keep the questions
on what we will do tomorrow to a minimum. Rosso
has charted the course of the future for thirty years
and has been broadly imitated. Not this time though.
This time the future is already here, between a Diesel
of luxury (with stores positioned between those of
Burberry and Chanel as in New York) and a virtual
Diesel, in the style of Second Life. To hit the winning
formula you need to move fast. A glance at his watch.
No joking around here. Time is precious.
Let’s start with a general overview. Rosso, born in
Padua in 1955, and Diesel, the company he founded
and of which he took outright control in 1985, are
the pinnacles of a Veneto system that has marked
modern jean history. Has this system retained its
competitive edge?
Undoubtedly, there was a Veneto leader in this
sector. But nowadays, jeans are a transversal product
that cross both segments and companies, as well
as geographical areas, and all the world’s brands
put them into their collections. A lot depends on
whether one has the ability and knowledge needed
to grasp the aspects of a product that integrate well
with liveability and the social scenario. This is why
the California jean industry is losing ground, because
it lacks the culture and know-how of jeans. While
the Scandinavian area is developing well, led by
brands such as Acne and Cheap Monday, who make
simple products, not technologically advanced, but
competitively priced and that mainly play on the
silhouette rather than on special treatments.
21/09/2007
Leaders
Diesel by Numbers
Diesel has its HQ in Molvena,
Vicenza province, from where it
controls more than 15 branch offices
across Europe, Asia and America. The
company’s current geo-chart covers
80 countries and counts 5,000 outlets,
of which 300 own-brand stores. Diesel
is owned by Only the Brave holding
company, which also controls Neuf
(the company that owns the Martin
Margiela brand), 55DSL, a brand of
urban culture and street&urban fame,
and Staff International, an Italian
company acquired in 2000 that
produces and distributes the group’s
proprietary labels, such as Maison
Martin Margiela, Diesel Denim
Gallery and Sophia Kokosalaki (recent
acquisition) and the licensed brands
of Dsquared and Vivienne Westwood
Red Label.
Only the Brave
2006
Sales
% Increase
2005
2004
1,180,000
1,089,110
1,004,178
7.2
8.5
27.4
2003
787,908
Ebitda
nd
272,987
265,847
172,841
% Ebitda
nd
25.1
26.5
21.9
Source: Company financial statements
Million of euro
Let’s talk market, how are jeans performing these
days?
Jeans are typically a cyclical product and, after
years of almost exponential growth, we have now
entered a “stall” phase. But, you have to watch out
because it is precisely in the crisis periods that the
strong companies emerge, the brand leaders whose
accumulated know-how and professionalism enables
them to come out even stronger. And move the
competitive marker even higher.
Is that what enables Diesel to offer the market
jeans priced from €250 a pair?
The brand makes the difference on a par with the
technological and qualitative content. That content,
above all, is guaranteed by the fact that Italy is still
the best production terrain for the medium-high
end of the offering. However, it is clear that all the
companies, even the luxury brands, are forced to seek
more economical solutions abroad when it comes to
making their inexpensively priced clothing. Primarily,
because, speaking of global brands with sales of
more than one billion, it is essential to segment the
offering to drive growth of 10% (+10% translates
into additional sales of euro 100 million).
Which means?
Currently, Diesel is crafting products of excellence
with maniacal care and of which I’m very proud.
Products with which the brand counts on giving
“even higher quality to its target market”. In line
with the segmental distribution strategy that is the
present-day challenge of the major brands: extend the
collections towards the higher end segments, but not
forgetting those already won. However, never speak
about first and second lines as this automatically
means talking about A and B-class consumers. The
brand is as unique, albeit in a much broader way than
originally, as the collection, which is distributed in
“packages” in correspondence with the features and
positioning of the retailer clients and their target
consumers. To clarify that concept, the best example
is Selfridges in London, our most casual line is sold on
the ground floor in the casual section, while the most
exclusive line, the one I was speaking about earlier,
is displayed on the Contemporary Floor on the first
floor and is the one that also generates the highest
sales per square meter. In addition, the consumer of
ten years ago was 20 years old and wanted a specific
kind of product, while today’s Diesel has grown up
and wants something more, but always in line with
the Diesel DNA of freshness and modernity.
A complex business that will see the company
participate also in the next Pitti Immagine Uomo, an
historic moment for the label given that it stopped
doing trade fairs years ago (Diesel will be the special
guest at the Dogana event-evening planned for 21
June).
21/09/2007
Leaders
Diesel Store NY, Union Square
And the interior of your stores?
The same thing happens, I’ll give you the New York
example. There is the flagship store on Lexington Avenue,
where you can explore the entire Diesel universe, the
Union Square store, close to the university, which stocks
the younger products and the store in Soho, where we
are positioned between Burberry and Chanel, which sells
mainly the premium Diesel items. We have ten stores like
the Soho one, positioned in the luxury market (editor’s
note: including the Corso Venezia store in Milan).
The brand is famous for its communication and
the many awards won by Diesel attests to this. How
do you differentiate from other brands?
We were the only brand to implement a different way
of communicating. The true difference is that we tell a
story. Today it is easy to advertise using testimonials and
naked women. Our Creative Team (guided by Wilbert
Das) differs in that each season they tell a story, such as
the “For successful living” campaign or the latest “Global
Worming”, advertising that generates controversy
and debate. In essence, we send out a message. We do
not say buy this or buy that, we say this is who we
are and this is what we believe in, but it is always the
consumer that chooses, if they appreciate us they buy
us. Whoever buys Diesel embraces a lifestyle, enters a
world, a community in which they feel they belong.
Some months ago you acquired the majority
stake in designer Sophia Kokosalaki’s brand.
This is the latest in a series of small but targeted
acquisitions. Is consolidation an inevitable process
for the industry?
I believe that small companies need to integrate with
more structured groups to survive and develop their
potential, it’s not just a question of finance. Indeed,
that’s the simplest aspect of all. By far the hardest
thing is to convince these small enterprises to change
21/09/2007
Leaders
Diesel S/S 2007
Campaign
their mindset, to get them to implement managerial
and industrial principles.
Don’t you think it’s time for a more sizeable
acquisition?
Look, it’s much more difficult to buy a small company
than a larger, structured organisation. Diesel needs
young, fresh and modern firms. We don’t need to
takeover a major player to boost sales. What we look
for are the contents, those that will dictate fashion in
the years ahead, in the future. In addition, we look
for diversity, for things that we don’t already do. And
one thing’s for sure, we certainly won’t be acquiring a
jeanswear brand, given that we already market our own
top brand.
How much of today’s Diesel is Renzo Rosso?
Diesel is still 100% Renzo Rosso. I no longer take
care of the activities that I term services (finance,
administration, IT), but focus on style, advertising
and the interior design of our store locations. I am
involved in the whole product process through to
the final fittings prior to the collection green light.
And each year at least 100 store projects – between
new openings and restylings – end up on my desk.
Therefore, how would you imagine Diesel
without Renzo Rosso?
It seems paradoxical, but this company is building
a fantastic structure even without me. A structure
of managers and creatives, so it would reap success
even without Renzo Rosso. I am at the service of
the company, a key team player and guide, but not
vital.
Rosso’s assistants call time-out and indicate an
always pressing schedule.
One last question. You’ve spoken about a TV for
Diesel, is that possible?
That was said by a journalist after interviewing
me. I simply said that paper-based information is a
dying species. Nowadays everything is virtual.
Talking of online, Diesel receives thousands of
requests from the internet community everyday.
Why not imagine something in the style of Second
Life, or even inside Second Life?
With a twinkle in his eyes and a sudden smile, he gets
up, saying only “Who knows”.
10
21/09/2007
FASHION STOCKS
July / August 2007
Stock market crisis sparks slight tumble
in Pambianco Index
Turbulent financial markets this summer also penalised
European fashion and luxury stocks in July and August.
Indeed, the Pambianco Index of Europe’s top 25 listed
companies retreated a total of 3.5% in July and August.
Taking into account also the May (-1.5%) and June
(-6.1%) performances, the Index has shed more than
10% in the past four months, although it has still
gained around 14% since the start of the year.
Analysing the triggers of this fall shows that the latest
stock market downturns sparked by the American
“subprime” mortgage crisis have not apparently hit
the consumption of luxury goods, nor the companies’
results, at least up to now. On the other hand, exchange
rates had a bigger impact, especially the €/US$, which
rose as high as 1.38, with the brunt suffered mainly
by the revenues and especially the earnings of those
European companies for whom the United States is a
large export market. SAFILO was the worst performer
in the past two months, with the stock shedding 27%.
Despite communicating favourable 1H07 results, with
10.3% revenue growth on a constant FX basis (+14.2%
at the current rate) and a 6.2% jump in EBITDA on
the earlier six months, The eyewear company was
penalised by the market for having lowered its yearend forecast, paring EBITDA to €180 million from its
earlier estimate of €190 million, precisely due to the
FX trend. Sicilian-based yacht-builder AICON, after
failing to acquire Wally Yachts, announced in early
August that it had bought Morgan, but the stock also
lost ground to the tune of 14.5%.
Another negative performance was announced by IT
HOLDING (-12.9%). After the initial enthusiasm for
the new industrial plan presented end-June and the
gradual exit of financier Giribaldi, the stock was hit by
COMPANY
EXCHANGE
PrICE
2 JULY 07
PRICE
31 aUGUst 07
ADIDAS
Franckfurt
46,75
43,15
AICON yacht
Milan
4,35
ANTICHI PELLETTIERI
Milan
10,90
BENETTON
Milan
BULGARI
Milan
∆%
01/01/07
MKT. CAP
(euro mln)
-7,7
14,1
8.630
3,72
-14,5
-9,3
405
10,30
-5,5
8,5
464
12,84
11,24
-12,5
-22,3
2.054
11,79
10,30
-12,6
-4,2
3.047
London
684,50
610,50
-10,8
-5,4
3.051
Franckfurt
32,48
29,05
-10,6
-2,2
472
GEOX
Milan
13,70
13,37
-2,4
13,8
3.343
H&M
Stockholm
405,00
388,50
-4,1
12,3
31.572
BURBERRY
ESCADA
∆%
mO JULY
Paris
82,83
79,17
-4,4
-16,4
2.871
Franckfurt
48,11
48,21
0,2
15,6
1.767
INDITEX (ZARA)
Madrid
43,43
43,05
-0,9
5,5
26.973
IT HOLDING
Milan
2,17
1,89
-12,9
21,2
468
LUXOTTICA
Milan
28,52
25,06
-12,1
7,6
11.452
LVMH
Paris
84,59
81,99
-3,1
2,6
40.061
MARCOLIN
Milan
3,22
2,85
-11,5
36,4
129
M. BURANI FG
Milan
26,32
23,71
-9,9
16,6
666
MARZOTTO
Milan
3,97
3,97
-0,0
15,7
270
POLTRONA FRAU
Milan
3,04
2,89
-4.9
-2,0
403
Franckfurt
330,08
295,69
-10,4
-0,1
4.943
RICHEMONT
Zurich
73,60
74,80
1,6
5,4
27.225
SAFILO
Milan
4,89
3,57
-27,0
-20,7
1.013
STEFANEL
Milan
3,21
3,00
-6,5
-1,6
158
SWATCH
Zurich
349,75
361,75
3,4
34,4
12.014
TOD’S
Milan
66,30
64,54
-2,7
5,7
1.949
VALENTINO
Milan
34,59
34,92
1,0
12,6
2.496
HERMES
HUGO BOSS
PUMA
11
21/09/2007
FASHION STOCKS
the decision of
some investors
to take profits.
The summer saw
the company
announce its
medium-term
targets and its
plan to change
listing to the Star
segment of the
Milan Bourse, as
well as the early
repayment of
its outstanding
bonds.
Contractions
were
also
vittorio tabacchi - safilo
suffered by
other stocks, Bulgari lost 12.6%, Benetton fell 12.5%
and Luxottica shed 12.1%, penalised mainly by the
currency impact and the generalised selling by investors,
despite the good first-half results posted. The Roman
jewellery house reported an 8.9% acceleration in sales
in 1H07 at current FX (+14.8% at constant exchange
rates). Indeed, the stock’s downward trading levels have
brought Bulgari’s valuation in line with those of its
major competitors, above all Tiffany and Richemont.
Meantime, Benetton posted sales growth of 10.2%
in the first-half of 2007 with a 14.8% increase in
EBITDA and has raised its forecast for the current
year. Management now indicates a 7%-9% jump in the
topline and EBITDA at least 20% higher than the year
earlier. Luxottica, after its Oakley acquisition, not only
announced 7.4% growth in 1H07 at current FX (+13%
at constant FX), but has also upgraded its FY07 earnings
forecast, which envisions a dividend payout of between
€1.11-€1.13 per
share versus its
earlier estimate
of €1.07-€1.09
per share. The
eyewear company
based in Agordo
also unveiled its
plan to create an
eyewear store
chain in the U.S.
called ‘ILORI’,
which will target
the high-end of
the market.
The only stocks to
mark favourable
s u m m e r NIck hayek - swatch
performances, in
addition to Valentino and Hugo Boss, whose stocks are
supported by the takeover bid of Permira, the private
equity fund, were Richemont (+1.6%) and Swatch
(+3.4%).
Richemont reported 9% sales growth in the first three
months of 2007 at current FX (+15% constant FX) and
the Board of Directors has proposed an extraordinary
dividend of €0.6 per share in addition to the ordinary
dividend of €0.65 per share.
While Swatch, whose trading levels have been
underpinned by the stellar results announced for the
first quarter, spurred net income a robust 40% on the
year earlier period.
After the weak markets of this summer, the trading
performance of Fashion and Luxury stocks will very
much depend on the global consumption trend, both in
the “back-to-school” season of September-October and
the Christmas holiday period.
1220
Pambianco Fashion Index
JULY / AUGUST 2007
1200
- 3,5%
1180
1160
1.179,6
1.138,4
1140
1120
1100
1080
1060
1040
1.000= 1/1/2007
1020
2/7 4/7 6/7 8/7 10/7 12/7 14/7 16/7 18/7 20/7 22/7 24/7 26/7 28/7 30/7 1/8 3/8 5/8 7/8 9/8 11/8 13/8 15/8 17/8 19/8 21/8 23/8 25/8 27/8 29/8 31/8
12
21/09/2007
italy
Benetton Group: revenue growth up 12%
LUCIANO E ALESSANDRO BENETTON
Benetton Group examined the preliminary results
for the first half of 2007 and confirmed the company’s growth objectives in terms of revenue (up
10.2% in the half year compared with the same
period a year previously).
The Benetton Group’s net revenues in the first half
of 2007 amounted to €990 million, an increase of
€92 million (+10.2%) compared to €898 million in
the first half of 2006. The main driver behind the
increase was the performance of the United Colors
of Benetton brands for adults and children, as well
as the sales growth of the Sisley collection.
Worth of note is the increase in sales of the recently launched Playlife, Sisley and Undercolors labels,
whose sales performance should continue to rise in
the next few months.
Playlife has received an enthusiastic response from
the market following its new positioning and collection, recording a growth of 30% compared with
Spring/Summer 2006.
The Sisley label is also achieving expected results.
Benetton’s underwear brand, Undercolors, posted a
growth of 16% in the last Spring/Summer collection compared with the Spring/Summer collection
of 2006. Development continues both in domestic
and international markets. In Italy, first half sales
increased by over 10%.
Continued growth of around 35% came from
Eastern Europe and Russia and the hundredth
United Colors of Benetton store opened in Russia,
in the half year just ended.
Expansion also continues in Asia and, in particular,
in Indian. Undercolors and Playlife stores will open
in India in the next few months selling the entire
Benetton Group range.
Valentino Fashion Group’s huge profit gain
STEFANO SASSI - CEO
The Board of Directors
o f Va l e n t i n o F a s h i o n
Group (FG) examined the
consolidated preliminary
results for the first half of
2007.
Net consolidated sales
amounted to €1.027 million
in the first half of 2007, an
increase of 11% compared to
the first half of 2006 (€925.7
million). In the second
quarter the Group boosted
its growth trend reporting a
15.5% rise.
Growth was a result of a
positive trend on all brands.
In terms of geographical
results, the Group’s sales
showed sustained growth
in the United States in
particular, amounting to €177
million, reporting a 20%
(currency adjusted) rise in
sales. In Europe, sales amounted
to €717 million reporting a
12.8% rise.
The most significant
investments made in this period
are the opening of 34 new
directly operated stores and
the updating of the Group’s IT
platform.
Performance in the first half
of 2007, the Autumn/Winter
orders’ backlog and growth in
direct retail anticipate a sales
increase of around 10% and
an over-proportional increase
in both operating and pretax profit compared to net
consolidated sales.
13
21/09/2007
italy
Burani targets a billion
T h e G r o u p, w h i c h
made its market debut
in 2000, aims to hit the
euro billion sales mark
shortly. Family run,
Mariella Burani Fashion
Group has successfully
melded the art of family
management with stock
market life and in 2006
fuelled sales of euro 668
million and net income
of euro 62.97 million,
GIOVANNI BURANI
marking an increase of
38% and 182%, respectively, on 2005. The fashion
group has delivered an average growth rate in sales
of 25% in the past six years and aims to hit the billion mark in a few years time. Mariella and Walter
Burani are the current creative director and president, while their two sons Giovanni (class of 1963)
and Andrea (twenty months younger) both have
economics degrees from Parma University and hold
MD positions, the former is responsible for strategy
and finance, the second for products and operations.
“We have repositioned upwards, explained Andrea
Burani, also through diversification. Currently, clothing fuels 45% of the group’s sales and leather-jewellery accounts for 55%, but we want to spur that
weighting to 75% in the years ahead”.
Ferretti and Marithé +
François Girbaud
create Giraffe
The eagerly
awaited partnership between
the Ferretti clan
and Marithé +
François Girbaud
under the name
of Giraffe is
u n d e r w a y. T h e
n e w c o m p a n y,
40% of which
is owned by
Ferretti’s private
holding company
( s e p a ra t e f r o m
MASSIMO FERRETTI
Aeffe) and 60%
held by Marithé +
François Girbaud, will commence production
and distribution of the Designer line worldwide
and Le Jean throughout Europe. Initial capital
for the project was €25 million. The fashion
retailer aims to open 30 new stores and 50 corner stores in the next three years and forecasts
an estimated €100 million in revenue. (Extract
from “Finanza & Mercati” of 7/09/07. Edited by PW)
Max Mara, Maramotti scores a double
LUIGI MARAMOTTI
After a few years of marking time,
the label now steered by the second generation – brothers Ignazio
(President), Luigi (Vice President,
in photo) and Maria Ludovica
(Director) – has not only returned
but doubled its profitability.
Indeed, Max Mara Fashion Group
(the parent company) spurred
earnings almost twofold in 2006
and is continuing that growth also
in 2007.
The consolidated financial statements show net income of €83
million, versus €44.8 million in
2005. The topline also put in a
good performance, increasing 20%
to €1.2 billion, while EBITDA
raced ahead from €50 million to
€233 million. Those results attest
to the forward vision of Achille
Maramotti, founder of the Max
Mara empire (who died two
years ago), when he bought his
first store in 1957. And not only
because he paved the way for the
fashion flag stores, with most of
his competitors following suit.
Today, the Reggio Emilia group,
founded in 1951, is one of the
world’s key fashion brands, boasting 2000 stores in more than 90
countries.
Indeed, the group’s main strength
is its distribution network. Ignazio
Maramotti believes those favourable results are the fruit “of the
strategic decisions made by the
group to bolster its distribution
chain”, thanks to which the label
expects further volume growth in
2007.
The Emilian fashion house invested around €29.3 million in its distribution structure in 2006, €8.9
million of which in commercial
real estate. (Extract from “Corriere della
Sera” of 28/08/07. Edited by PW)
14
21/09/2007
italy
Work starts on Breganze Diesel Village
RENZO ROSSO
“Diesel Village”, the new quartier
generale of the company led by
Renzo Rosso, is about to rise at
Breganze. Yesterday saw Diesel’s
President and founder fete the
start of construction work by
laying the ‘first stone’ before an
audience that included the press,
the local authorities and, naturally, the entire Diesel tribe.
The ceremony was followed by
a countdown party in full-on
Diesel style: one hour of partying for the more than 500 guests
on the building site of the new
head office.
The architectonic project fully
reflects the Diesel philosophy:
innovation and creativity in its
pure state.
In fact, the new headquarters
will not be just a cluster of work
spaces, but also provide employees and their families with services such as a crèche, a multipurpose auditorium and a restaurant,
without forgetting two outdoor
football fields, an internal pitch
and a gym.
The pinnacle of the construction
project was the search for cutting-edge eco-compatible solutions and the use of alternative
energy sources. In addition, the
buildings will be constructed
using eco-sustainable and recyclable materials, such as copper,
wood and glass.
The creative concept was thought
out by the Diesel Creative Team
in collaboration with Studio
Ricatti and Jacobs Engineering.
The village will be immersed
in greenery so as not to clash
with the local surroundings,
which has entailed a landscaping project commissioned to
specialist company L.A.N.D.,
Landscape Architecture Nature
Development.
Artemide, 15% increase in turnover
ERNESTO GISMONDI
Artemide still enjoys continued growth. After an
excellent 2006 yearly performance in the first six
months of 2007, consolidated turnover was €16.1
million euro (+15%) compared to the same period
the previous year with an increase in turnover of
€8 million. The lighting designer company, which
obtains 70% of its revenue from abroad, recorded
excellent results in Europe - especially in the UK,
(which posted a growth of 31% compared to the
first quarter of the fiscal year 2006), in France, (+
25%) and Spain (22%).
Italy also did particularly well and recorded a
17% growth as did the US (+5% compared to
the first quarter of the fiscal year 2006) and the
rest of the world (+16%), with Russia in pole
position. Lighting product design and Achemide
Architectural, Archemide’s two main businesses,
posted a growth of 14% and 18% respectively in
the first quarter of 2006.
CDA is also undergoing a few changes and has
appointed 3 new members – Carlo Puri Negri,
CEO of Pirelli Real Estate, Emilio Bartezzaghi,
full professor of Business Management at the
Politecnico of Milano and Daniele Discepolo, a
lawyer and a member of the CDA of Piaggio spa.
They are replacing Pietro Marzotto, Giordano
Zucchi and Innocenzo Cipolletta. (Extract from “Il Sole
24 Ore” of 9/08/07. Edited by PW)
15
21/09/2007
italy
Replay e Procter & Gamble make fragrance together
Box Group. “From our part”, commented Heike
Hindenlang, Global Marketing Director, Prestige
Products, “We want to create a distinctive fragrance line which will capture the spirit of today’s
young consumers by combining Replay’s innovative strength with our expertise in the fragrance
market. This partnership with Replay perfectly
enhances our existing portfolio and opens new
growth opportunities”.
SILVIA BUZIOL E MARCO BORTOLETTI
A licensing deal has been signed between Procter
& Gamble (P&G) and Replay to create a fragrance
line. This partnership will open new growth opportunities for P&G Prestige within the young consumers segment. “We want to grow into new categories after having successful licenses for eyewear
and footwear. Fragrances represent a key license
for us”, explains Marco Bortoletti, CEO of Fashion
Ferragamo: Cristina Ortiz named creative director
of women’s ready-to-wear
Salvatore Ferragamo named
Cristina Ortiz creative director of
its women’s ready-to-wear and her
appointment will begin with the
Autumn/Winter 2008 collection.
She will flank chief executive officer, Michele Norsa, in a new project
development for Ferragamo.
Cristina Ortiz, originally from the
Canary Islands, studied at the École
de la Chambre Syndicale de la
Haute Couture in Paris and worked
as design director for Prada from
1994 to 1997.
She also worked as creative director
for Lanvin for 4 years and recently
joined Brioni to design the women’s line. Cristina, who lives in Italy,
is married and has two children.
CRISTINA ORTIZ
16
21/09/2007
Exclusive Interview
Bottega Veneta,
true luxury
is no-logo
We met Patrizio Di Marco at the opening of the new
Bottega Veneta store in its splendid setting of Palazzo
Tornabuoni-Corsi in Florence.
Forty-five year-old Patrizio Di Marco, born in the Marche
region of Italy, joined Bottega Veneta six years ago when
it was acquired by Gucci Group (PPR), taking what he
defines as “a rather dusty brand” and transforming it
into an international super-brand.
The top manager, armed with an in-depth knowledge of
the global luxury market gained with groups the calibre
of Louis Vuitton, Céline and Prada in the United States
and Japan, in tandem with creative director Tomas
Maier, has adroitly positioned the Bottega Veneta brand
in the rising super-luxury firmament, often bucking the
trend of a market that puts the logo in the spotlight.
Patrizio Di Marco President of Bottega Veneta
Bottega Veneta has become one of Gucci Group’s
pinnacle brands since you arrived at the helm. Sales
accelerated 67% to €267 million in 2006 on the
crest of 60% growth the year earlier. While EBITDA
reached 24.7% of sales in 2006 from 13.9% in 2005.
What is the driver of this success?
Bottega Veneta’s success is driven by a number of
factors where the human and organisational factor
underpins the whole. Naturally, our focus on crafting
the finest quality products, providing a customised
service and the refined and luxurious environment
are a proven mix when it comes to creating the
foundations for major profitability at a level to ensure
the brand’s longer term development. Bottega Veneta
creates economically demanding products, so we must
be coherent with the timeless and always wearable
allure and style of the brand. We have pursued
craftsmanship, hand-worked processes and quality:
the original soul of a brand called Bottega Veneta
17
21/09/2007
who chose not to have a logo, but to use its working
techniques, which are the heart of the company, to gain
recognition: the hand-woven leather signature.
the completion of a very fast journey (six years) that
has taken Bottega Veneta from a rather dusty and “old”
brand to one of the most exclusive marques in the
current landscape.
What was it like in the early days of this adventure?
Bottega Veneta is enjoying remarkable growth in
When I took over the management of the brand, the Japanese market and has become one of its most
Bottega Veneta had 17 stores, only four of which were in important brands with 2006 sales reaching €90
Europe, three in Hong Kong… We immediately closed million. It therefore seemed important that we create
down seven stores that were a bad fit for the label’s something special. Contrary to popular belief, Japanese
future development and prestige, and reacquired the clients are demanding and sophisticated, they look for
distribution rights for Japan.
perfection in the details and for
Then, along with Tomas Maier,
a product with distinctive style,
Bottega Veneta is preciuos.
we prepared the first collection
not its logo. This was also a first,
in only three weeks so that in
key step towards other possible
It is and will be exclusive
July 2001 we were ready with
openings in major cities like
our new venture. We were
Osaka and Nagoya.
highly confident of achieving our ambitious project
because everyone was so enthusiastic and supportive.
After the opening of the Florence store, what are
your plans for Italy and the rest of the world?
Going forward, on which strategic markets will you From the 21 stores operated in 2001 we have
focus?
reached 109, in the past five months alone we have
We have a highly balanced sales presence in the diverse opened 13 stores worldwide. It is important that
markets. Above all, we will focus on the Far East, Bottega Veneta find the most suitable locations,
primarily Japan followed by China, Korea, Taiwan like in Florence, to maintain a retail policy based
and Hong Kong, as well as in Europe, which is our on exclusivity because “true luxury” must not be
second core market with 63% of sales, after Japan and accessible everywhere. Currently, we are defining
the United States. We are also looking at the emerging store openings in Copenhagen, Kiev in the Ukraine,
markets, such as India.
Vilnius in Lithuania and in Moscow, while in Italy
we will open outlets in Venice and Porto Cervo in
You just opened a new store at Ginza, the biggest Sardinia. Our plans also include opening boutiques
boutique in the world, in a five-floor building of in world cities with a strong tourist calling, mainly
1000sqm. What did that event mean to you?
through a direct distribution network. But we
Ginza is something of a finishing line and a starting would never neglect the prestigious international
point for Bottega Veneta. Ginza is one of the busiest multi-brand and department stores, where Bottega
quarters in the world, whose name itself evokes style Veneta already has a large footprint. In tandem, we
and exclusivity, which is also a little like the essence of are developing a store franchise network, recently
our brand. For the company, the opening has signified enriched with new openings in Saudi Arabia.
A/I 2007-08 Campaign
Florence
18
21/09/2007
rest of the world
Adidas takes on Nike
Who will win
the Beijing
2008 Olympics?
Will America’s
Nike win the
Number One
brand race in
the sports shoes
and sportswear
b u s i n e s s. O r
will it be beaten
to the post by
German rival Adidas, official sponsor of the Chinese
games? The sales results related to the event will
be a determining factor also in the stock market
performances of the two companies’ shares, the
former listed in New York, the second in Frankfurt.
The first six months of 2007, saw Nike cross the
finish line first, rallying 8% in one day alone on 27
June, after posting its results for the quarter closing
end-May. Wall Street loved both the 32% sprint in
profit and the announcement that the orderbook to
November had swelled 12% in Europe, Africa, the
Middle East, 19% in Asia, and by more than 9% in
the U.S., a market already dominated by Nike, where
it recently suffered a slowing due to the fall in mall
traffic. Analysts rate Nike a “buy in moderation” yet
remain neutral on Adidas. But the race is far from
Hugo Boss: sales up
by 11%
won. Despite the 45% surge in trading levels in the
past year, “Nike still has room to run”, says The Fool,
the value investing website. Nike actually boosted
its share from 79% to 83% of the U.S. basketball
shoes market, worth $3 billion and where the models
inspired by ex-champion Michael Jordan are still
going strong. Now, with the $90 million sponsorship
of new star LeBron James, Nike is aggressively
looking to conquer China, whose basketball public is
sharply growing in number, thanks to the successes of
net player Yao Ming. Adidas can expect a good 2007,
driven by the advertising success of its sponsorship
of the world football championships in Germany
and hopes to score a double hit with the Beijing
Olympics, in which it is estimated to have invested
$100 million in cash
and extras, such as
the uniforms of the
40,000 volunteers and
other staff who will
work at the games. In
China, the German
company already has
2500 stores, a figure
it plans to double
by 2010. (Extract from
CorrierEconomia of
9/07/07. Edited by PW)
Swiss Made gets tougher rules
Hugo Boss continues its strong sales performance with
group sales up by 11% to €794 million in the first half
of 2007 compared to €712 million for the same period
a year previously. Net revenue amounted to €64 million with an 18% growth. Sales rose by 8% in Germany,
whereas in the rest of Europe, sales were up by a substantial 17% to €382 million. Central and Eastern
Europe made a strong contribution to this growth
with a sales increase of 40%. Boss Women’s Wear label
generated sales of €100 million (+38%). Boss Shoes e
Leather Accessories label generated sales of €89 million
(20%) and €109 million (+27), respectively.
Swiss Made watches are heading for tougher
standards, seeing that the general meeting of
Fédération de l’industrie horlogère suisse (FHS),
the Swiss watchmakers industry association, has
voted to present the Government with a proposal defining tougher regulatory framework.
The Swiss-based firms have come up with a
new value criterion, proposing that in the
future a mechanical Swiss watch be defined
as such only when at least 80% of production
costs can be attributed to operations done in the
Confederation. That level is reduced to 60%,
however, for other types of watches, especially
electronic. Indeed, the proposal indicates that
also the technical work and the prototypes must
be constructed in Switzerland. At present, three
main rules define “Swiss Made” final products:
a Swiss movement, a case made in Switzerland,
and controls effected by a producer based in the
Confederation. (Extract from Il Sole 24 Ore of 7/07/07.
Edited by PW)
19
21/09/2007
rest of the world
Swatch: strong growth in first half year
NICK HAYEK
In the first half of 2007 Swatch
Group increased its net income by
39% and its expectations for the
second half-year are high.
This is based on the outstanding
performance on sales registered in
July and the beginning of August.
The world leader in the watch
industry reported a net profit of
CHF460 million, (€280 million),
and gross sales climbed by a sub-
stantial 17% to CHF 2,74 million.
According
to
Patrik
Schwendimann, an analist at
Zurich Cantonal Bank, these
results have clearly exceeded
expectations. Operating margin
has increased by 17% to CHF511
million. The company does not
release quarterly results, however, shares jumped 3.7% to
CHF352.75 million.
Crocs add new apparel line
Crocs Inc, American footwear manufacturer, is
a rapidly growing company and has taken the
idea of brand diversification to new heights
with the introduction of its first apparel line
for men and children.
The company based in Niwot, Colorado, is
known worldwide for its colourful funky footwear made out of a special material known as
Croslite.
Crocs Inc unveiled its new line of clothing at
Magic Market Place in Las Vegas a few days
ago.
The apparel for men and children (male and
female) will be introduced this October at
U.S. retailers and will be available through the
Crocs’ Website.
(Extract from “Fashionmagazine.it” of 30/08/07. Edited
by PW)
20
21/09/2007
rest of the world
Esprit’s net profit up
by 27%
Kenneth Cole:
second quarter results
slightly down
Kenneth Cole reported its financial results for the
second quarter of 2007.
Net revenue amounted to US$118.9 million with
a slight decrease of 12% compared to US$135.3
for the same period the year previously. Licensing
revenue has increased by 2.2% to €10.6 million
compared to €10.4 million for the same period
the year previously. Kenneth
Cole, President
and CEO of
the company
said “I am confident that the
investments we
are making will
pay off”. In the
next quarter
he expects an
increase in net
revenue ranging between
US$130 and
US$135 million.
Hong Kong-based fashion lifestyle retailer, Esprit
Holdings, reported that its net profit jumped by
26.9% to HK$29.6 billion (approx. €2.8 billion)
compared to the same period the previous year.
The fashion retailer says it aims to open 100 new
directly operated stores and renovate existing retail
shops, investing over HK$1 billion, with a view
to expanding sales. It also plans to add 2,000
new retail outlets. Esprit’s new brand, Edc, will
reinstate its image in Europe and Asia through
the partnership with MTV. For the year ended
June 30, the company’s operating profit margin
amounted to HK$5.2 billion (up 39%) with a
net profit margin of HK$5.2 billion (up 38.6%).
The retail segment delivered a strong turnover
growth rate of 32.2%; while the wholesale segment
recorded a solid turnover growth rate of 23.4%.
KENNETH COLE
(Extract from “Fashionmagazine.it” of 30/08/07. Edited by PW)
HEINZ KROGNER
Vogue takes its glamour
to India
Gap’s profits rise
After more than 2
years of sales decline,
the American retailer
G a p, p o s t e d a p r o f i t
increase.Gap Inc. posted
second-quarter profits
with a 19% increase in
net income to US $152
billion, helped by cost-trimming efforts.
The company eliminated 2.200 positions from
February 2007.
Although Gap’s results were encouraging, sales
for this quarter fell to 1% to US $3.7 million.
In the first 6 months, the company’s turnover
increased by 1.1% to US $7.2 billion, while net
profits decreased by 10.5% to €331 million.
(Extract from “Fashionmagazine.it” of 27/07/07. Edited
by PW)
A year after its announcement the Mumbai printing presses of Condé Nast are gearing up in readiness for the launch of Vogue India slated for
22 September. Alex Kuruvilla, managing director of the American group in India, spoke to the
Financial Times about the publisher’s ambitions
in the subcontinent, announcing that the launch
of the fashion world’s historic magazine will be
followed in turn by the publication of the group’s
other magazines such as Glamour, GQ, Condé
Nast Traveller and Vanity Fair. The arrival of the
foreign press usually opens the door to interest in
the local market. So imagine the debut of Vogue,
the epitome of international glamour and luxury,
who, from Mumbai, will mix local tradition with
Western vision in its quest to capture the emerging
wealthy classes (second only to Singapore according to a research report by Cap Gemini-Merrill
Lynch on individuals with a net worth of one million dollars).
21
21/09/2007
rest of the world
Carrefour challenges Zara
with low-cost clothing brand
A year ago, Carrefour, the world’s
second largest retailer after Walmart, decided to revamp their
25-year old Tex mass market
clothing label and turn it into a
full-fledged women’s label. Then
they decided to take it one step
further. They teamed up with the
international leader in women’s
ready-to-wear designer clothing,
Bcbg -Max Azria. Based in Vernon,
California, this Group is worth
US$650 million
and operates
in 29 countries
under brand
names such as
D o r o t h é e b i s,
Max and Cleo
and Herve Leger,
a m o n g o t h e r s.
The outcome?
A fashion show
held in Paris on
1 5 M a y, w i t h
the Management
Board
of
C a r r e f o u r
present, including
its Chairman. The contemporary
line, Max Azria’s A/W collections
were slated for mid-August
delivery in 500 hypermarkets
in Italy, France, Spain, Belgium,
Po r t u g a l a n d G r e e c e. T h e
collection includes dresses, suits,
trousers, shirts and accessories such
as handbags, belts and shoes. “We
are strong retail distributors of
household products and provisions
but we have no fashion industry
know-how”, explains Giuseppe
Brambilla, CEO of the Carrefour
Italia Group. As a result, Carrefour
sought the help of professional
fashion designers to revitalise
their retail apparel business.
While most brands such as H&M
teamed up with designers like Karl
Lagerfeld and Stella McCartney
for their mini one-off collections,
Carrefour commissioned only
one designer to produce their
entire collections. Is the giant of
European supermarkets really up
for challenging the likes of H&M,
Zara and Benetton & C?
“Our range will be sold at very
competitive prices, without
a doubt. The collection is fresh
and contemporary and we are
looking to convert this brand
into a full-fledged fashion label”,
explains Giuseppe Brambilla.
The Franco US designer has also
been commissioned to produce a
more ‘fashionable line’ that will
be updated monthly throughout
the year. (Extract from “Panorama” of
20/08/07. Edited by PW)
Guess: Second quarter 2007 revenues,
an increase of 48%
The Amercian company, Guess, founded in the early 80s and led by Paul and
Maurice Marciano, have reported financial
results for the second quarter of its fiscal
year. Revenues have increased by 48% to
a record US$388.3 million and net earnings increased by 82% to US$37.5 million. The European segment was especially
strong with a 121% increase in revenues.
Strength in the Asian market, driven mainly
by South Korean operations, contributed to
a 75% revenue increase. The licensing business also continued to perform well posting revenue growth of 51% in the quarter.
Strong performance in North America led
to a 21.4% revenue increase (a 16.2% same
store sales increase).
22
m&A
Aicon acquires Sicily’s Morgan Shipyard
LINO SICLARI
Lino Siclari of yacht-building group Aicon has
made his first acquisition in the form of the
Morgan Yacht mark, the Sicilian shipyard founded
in the early 20th century by Leopoldo Rodriguez.
Indeed, Siclari, who was advised by UBM, only
recently gave his approval to the final details of the
agreement to acquire Morgan’s yacht production,
which will remain in Sicily. Morgan Yacht pow-
Luxottica gets the go-ahead
to purchase Oakley
The U.S.
Federal Trade
Commission
has granted
early
termination of
the antitrust
waiting period
for Luxottica
Group’s
purchase of
Oakley.
However,
other
conditions to
LEONARDO DEL VECCHIO
the closing
of the deal still remain outstanding, including
obtaining certain antitrust clearances as well
as the required approval of the transaction by
Oakley’s shareholders. Luxottica Group and
Oakley expect the transaction to close in the
fourth quarter of 2007.
ers annual sales of around €10 million and reaps
roughly 30% in profitability, in line with that of
Aicon. A new industrial company will be incorporated for producing the yachts in which Aicon will
have an 80% interest, while Leopoldo Rodriguez
will hold 20%.
The transaction, valued at around €4 million, is
part of the growth-by-acquisition plan crafted by
the group helmed and founded by Lino Siclari.
Before setting its sights on Morgan Yacht, the
Sicilian group shopped around and looked at different shipyards in the past months, including
Wally Yacht, which then saw French-Bulgarian
businessman Atans Salabaschew enter the shareholder structure with a minority stake.
Aicon reported consolidated revenue of some
€38.4 million in 2006-07, marking a hefty 67.8%
jump on the around €22.9 million generated in the
year-earlier quarter, while in the first half of 200708, the yacht-maker spurred sales to €54 million
versus total sales of €59 million in 2006-07.
(Extract from Il Sole 24 Ore of 2/08/07. Edited by PW)
Hermès
acquires Soficuir
Hermès
International,
who previously
owned 49.6%
of Soficuir
International
has acquired
the company’s
remaining shares.
Soficuir
Group includes TCIM (Tanneries des Cuirs
d’Indochine et de Madagascar) a company
specialising in tanning precious skins,
primarily, crocodile skins. This acquisition will
enable Hermes, which already owns 100%
of Gordon-Choisy, a company specialising in
the tanning of exotic leathers, to reinforce
its tanning capacity. The Soficuir group
operates in France, Italy, the United States
and Switzerland. It generated consolidated
revenues of €56 million in 2006.
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SHOP openings
Prada strengthens its retail presence in China
Prada inaugurates two
tiques in China – one
and one in Shenyang,
tal of the Liaoning
new bouin Beijing
the capiProvince
– strengthening its
Chinese store network, which today
boasts a total of
nine stores. Prada’s
boutique in Beijing,
located in the China
Central Plaza departm e n t s t o r e, f a c e s
Chang’an Avenue and
sells men and women’s clothing, footwear, and accessories.
T h e s t o r e, c o v e ring a total of 400 sq
metres, is organized
on two floors, which
are connected by a
black marble staircase with smoked
glass sides. The second store, located in the famous industrial district of Shenyang, sells women’s
clothing, accessories & footwear, men’s
footwear, and the travel collection.
Audemars
Piguet conquers
Ginza
Marlboro Classics
opens in Kiev
Marlboro Classics is about to enter the
Ukrainian market with the opening of its first
exclusive store in Kiev. The store is located
in Arena City, the shopping centre in the
heart of the Ukrainian capital, known as Ul.
Krasnoarmejskaya Bassejnaya, and also sells
international clothing brands, cosmetics and
luxury cars. The store covers 100 square
metres and houses the entire Marlboro Classics
collection. Net revenue amounted to € 160
million with an 18% growth compared with
the same period a year previously.
On July 11 & 12, Audemars Piguet (AP) opened
its new boutique in Tokyo’s well-known Ginza
district, a highly sought-after location. The boutique is spread over the first two floors of a
10-storey building and is the ideal
showcase for the
brand’s mechanical creations. The
rest of the building
houses operations
such as customer
s e r v i c e, o f f i c e s
and a VIP lounge
located on the top
floor. Yasumichi
Morita, renowned
designer and architect, created a bold
façade to highlight
the building’s distinctive structure.
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21/09/2007
SHOP openings
Espressamente Illy to open 105 coffee shops in China
The first step, one year ago, was to open a
Shanghai-based company for the purpose of “making preliminary commercial contacts and to study
the espresso coffee consumption potential of the
great Chinese market”, said Andrea Illy, president
of the Italian coffee producing company, at the
time. Illy closed 2006 with sales up 8.5% to euro
246 million, when it invested euro 47 million, and
net income of euro 5 million. Today, the actual
launch is the fruit of two joint ventures with the
local companies chosen to manage the opening of
the 105 Espressamente Illy stores by 2012. After
China, the company’s sights are set on Vietnam,
South Korea and New Zealand with plans to open
a total of 72 coffee shops. All in less than 48 hours.
One of the two partners of Illycaffè is Great Wall
Enterprise corporation, a diversified food group
listed on the Taipei exchange, who will be entrusted with the implementation of 75 outlets, 58 in
the People’s Republic and 17 in Taiwan. Illy’s other
partner is Hong Kong’s listed Cafe de Coral group,
where it manages a large restaurant network that
stretches across the whole of China.
The agreement calls for the opening of 30
Espressamente Illy franchises in the areas of Hong
Kong and Macao, the first slated to open midSeptember in the international airport of the excity state. Once on stream, the two JV are expected to develop a business turnover with a present
value of euro 34 million. Foreign markets drive
54% of Illy’s sales and the Italian coffee producer’s
internationalisation project also targets the Middle
East, where a couple of months ago it struck an
agreement with Aida Trading Establishment to
open 25 coffee shops located in the major Saudi
Arabian, UAE, Bahrain, Oman and Kuwaiti cities
by 2009. (Extract from “Il Sole 24 Ore”, 7/07/07. Edited by
PW)
Shop openings in short
Nike and Adidas Open Mega stores
in Beijing
First Flagship Store Miss Sixty/
Energie in New York
Nike opened its
1,200-squaremetre flagship
store in the
heart of the
Chinese capital.
Adidas, on the
other hand, announced the opening of its largest
ever store (3,000 square metres) to coincide with
the Beijing 2008 Olympics. Nike has been doing
business in China for more than 25 years and it is
poised to be a $1 billion (€726.2 million) business.
Adidas currently has
3,000 stores (owned
by partner companies)
and 550 Reebok stores
and also plans to reach
sales of US$1 billion
by 2010. (Extract from
Sixty Group is getting ready to debut its first NY
flagship store this Autumn and has staked out 2
floors in the old Lord & Taylor building at 901
Broadway,
displaying the
Italian cobrands Miss
Sixty/Energy.
The space
will serve as
Energie’s first
flagship store
in New York
City, situated
in one of
the most
important shopping locations in the world - the
Flatiron district, Sixty Group’s sales have increased
by 40% in the last year with a forecast sales
increase of 40% for the year 2007/2008.
“Fashionmagazine.it” of 30/08/07. Edited by PW)
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ads & EVENTS
Armani Lounge for Chelsea Football Club
Giorgio Armani has been commissioned by
Chelsea Football Club to create a new look for its
Gold mine Beckham nets
Real euro 440 million
The coffers of Merengues have swollen enormously
in the past four years, thanks to the English soccer
player. As confirmed by Real Madrid’s marketing
director, Jose Angel Sanchez, in an interview with
financial daily Cinco Dias.
In four years, David Beckham, has enabled the
blancos club to net something like euro 440 million.
After paying euro 36 million to get the player
into a Real Madrid white shirt, Beckham won the
team only a championship and the Spanish Cup.
Nevertheless, that performance was offset by the
revenue stream. Indeed, the first six months after
his arrival at Vicente Calderon saw the club sell one
million extra
shirts. Neither
should we forget
his many official
appearances,
especially in Asia,
which channelled
some significant
sums into the
coffers of Real
Madrid, who of
course thanks the
star footballer.
Now let’s see
what Beckham
manages to do
for Los Angeles
Galaxy.
DAVID BECKHAM
Directors’ Suite at Stamford Bridge stadium in
London. The exclusive Armani Lounge will be the
main meeting place for both the Chelsea Board of
Directors and for the entertainment of VIP guests.
The “Armani Lounge” covers 200 square metres
divided into two adjoining sections: the “Directors’
Bar” and the “Directors’ Dining Area”, personally
designed by Giorgio Armani.
The result is an extremely sophisticated environment with the walls throughout in a mirrored
bronze colour or alternatively clad in bronze metal
effect laminates with marble flooring, warm diffused lighting from ceiling spotlights and table
lamps from the Armani/Casa collection. Both areas
are provided with wall mounted plasma screens to
show the games live.
Julian Schnabel Awarded the
2007 Gucci Group Award
Julian Schnabel and robert polet
American artist Julian Schnabel received
the 2007 Gucci Group Award from Robert
Polet, President and CEO of Gucci Group, at
a ceremony held at the Palazzo Grassi during
the 64th Venice Film Festival. Schnabel was
honoured for his direction of “Le Scaphandre
et le Papillion” (“The Diving Bell and the
Butterfly”). The Gucci Group Award is
bestowed to an internationally-acclaimed artist
who has made a remarkable contribution to a
film in any capacity within the past 18 months,
as a director, actor, screenwriter, set designer, or
costume designer. Upon receiving the award,
Schnabel said, “Painting can be compared to
life, it is about optimism and faith. Artistic
expression is the embodiment of hope.” “Julian
Schnabel’s ‘Le Scaphandre et le Papillion,’
perfectly encapsulates the essence of the Gucci
Group Award which recognizes and honours
visionaries who bring art to life on screen,” said
Polet.
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21/09/2007
ADS & EVENTS
New Guess campaign
prompts oriental reflections
The new Fall/Winter 2007-08 advertising campaign for Guess by Marciano marks the return
to a chic, modern and sophisticated elegance
that teams timeless style with that latest and
most poetic of fashion destinations, Japan. The
images depict an elegant and refined threesome surrounded by a bright white blanket of
snow just outside urban Tokyo. The models are
enveloped in a highly suggestive atmosphere of
fantasy and desire where nature predominates
in the delicate nuances of winter and where
the red maple trees make a stark contrast to
the luminosity of the sky. The soft and mellow
colour palette reveals natural bamboo and pine
shades, contributing to the refined stasis of a
rarefied, highly serene air. The creative direction of Paul Marciano ensured that well-known
photographer Yu Tsai captured the beauty and
enchantment of nature to frame the refined
elegance and sensual glamour of the Fall/Winter
2007 GUESS by Marciano collection.
Carolyn Murphy
& Patrick
Demarchelier for
7 For All Mankind
The Autumn/Winter 07-08 collection of 7 For
All Mankind will be truly interesting.
The brand, created by Peter Koral, has recently
passed into the hands of VF Corporation.
The launch of its first advertising campaign
features Carolyn Murphy, the international top
model, who embodies true American beauty.
The campaign was shot by renowned photographer, Patrick Demarchelier; 7 images that
exalt and highlight the design and details of
the clothing range and accessories.
The first exclusive store is located in the heart
of LA, needless to say.
Gorbachev is the new face of Louis Vuitton
MIKHAIL GORBACHEV
The former Soviet Union leader, Mikhail Gorbachev,
will be featured sitting in the back seat of a car driving
along a remnant of the Berlin wall. He is not making an appearance in an historical film; he is the face
of one of Louis Vuitton’s print ad campaigns. The
ad shows the father of “perestroika” sitting next to a
Louis Vuitton bag. Gorbachev accepted to take part in
the ad to communicate how a brand can change and
broaden its appeal in new markets. The campaign will
appear in magazines in the Autumn. Pietro Beccari,
director of Marketing at Louis Vuitton, said “The
campaign is built on the idea of a journey, an experience that changes the lives of both the individual and
figureheads.” In 1997, Gorbachev starred in a television ad for Pizza Hut, which was not aired in Russia.
This time, the Louis Vuitton ad campaign featuring
Gorbachev, photographed by Annie Leibovitz, will
appear in magazines in Russia by September. The
money earned from the campaign will be used towards
the Gorbachev Fund publication projects. (Extract from
“Corriere della Sera” of 1/07/07. Edited by PW)
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ners
PIERO LISSONI
Piero Lissoni, the designer
who never wants to grow up
Piero Lissoni, the Italian designer who in 2005 was
awarded a place in America’s Halls of Fame of Interior Design, one of the highest industry recognitions
worldwide, recently celebrated his 50th. A milestone
in a professional career that has seen the designer test
his skills in the most disparate fields. Infusing not only
home objects and furniture with his crisp and essential
design, but also homes, hotels, showrooms, restaurants
and yachts planet-wide.
In addition to an eclectic range of design objects, Lissoni has designed a number of showrooms, from Boffi’s to Cassina’s, the Milan store of Porro, American
fashion designer Elie Tahari’s store, the Mitsui Garden
Hotel at Ginza, the Hotel Monaco & Grand Canal,
the Zanini cake and pastry shop in Venice, the new
Milan offices of La Rinascente group, and the interiors
of the Shangri-La Hotel & Living Residence in Miami, due to open next year. Self-profiled as incoherent,
lover of imperfection and infected with the Peter Pan
syndrome, Piero Lissoni currently lives and works in
Milan from his studio staffed with more than 70 collaborators that he defines as “the realm of anarchy”.
He is very rarely apart from his three golden retrievers,
who never let him out of their sight: Sofia (with eyes
as beautiful as those of Sophia Loren, he explains),
Caterina (with the authoritarian nature of Catherine
the Great of Russia) and Sati (like “Satisfaction”, the
Rolling Stones’ hit).
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desi
ners
Friz Hansen Collection
Mamilla Hotel, Jerusalem
Do you ever think you could have been something
else other than a designer?
As a boy I thought I’d be a ski instructor and I did
come close.
I thought it would be a profession of never-ending
holiday, surrounded by lots of beautiful girls… That
aside, I love the mountains, for their infinite contact
with nature, albeit with perceptible measures; I can
go mountain-climbing with the friends with whom I
share mountain experiences and remain a long time in
silence, a silence loaded with words, as happens only
in the mountains.
What led you to choose this profession?
I chose to become an architect because it is the profession that enables you to prolong childhood games
more than any other.
Indeed, as a kid, one plays with small bulldozers, as an
adult I deal with the big construction site bulldozers,
first you build Lego houses and then you build them
with bricks and cement. In essence, design is architecture applied to objects of everyday use.
You’ve been defined as the “poet of minimalism”,
can you identify with it?
If minimal means simple and not stripped down, then
yes: I like a kind of approach to simplicity, understood
as a diverse way of imagining life. Humans are complex animals, sometimes complicated, and simplifying
their life through my work is something that gives me
satisfaction.
Your son works with you. He even seems to have
promise: the cow he designed for the Milan Cow Parade fetched a record-breaking €24,000 at the auction, the highest price of them all… What advice do
you give him?
Francesco, who is now 25 years old, is temporarily on
my team but is responsible for 3D images, so he works
exclusively on the computer, after which he will go
abroad for a while. My advice to him, as it would be
to any young designer, in any field, is to go to India
or China, as well as London, which are still places
that breathe creativity. These are enthusiastic-minded
countries that offer the right creative hummus for
Mandarin Hotel, Dellis Cay
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creative professionals. My advice to those who want
to embark on this career, either as an architect or
designer, is to acquire a basic foundation in the arts:
what use is being able to talk the refined language of
nano-technology and molecular modifications if you
know zero about Ancient Greece? I would also advise
reading poetry and lots and lots of books: literature is
a way to interpret life. The studio boasts a library of
5000 volumes.
In what way is your creative process influenced by
the needs of the beneficiaries of your projects?
Yes, everything around me. I am incredibly curious.
As designers we are often healthy “ego carriers”, therefore we don’t much think of the final user. Industrial
design and its use, however, are two inseparable elements. I design with a team that translates the needs
of the client company and not thanks to my illuminating vision. The creative process is a shared enterprise,
with feedback flowing between me and the rest of the
team and the client.
When can you say that a product designed by you
is a “success”?
The banal reply would be “when it sells well and I
receive some hefty royalties”, but those products are
not always the ones that give me the most satisfaction.
Some projects I really love have worked out less well.
I don’t believe in the marketing geniuses that decree
how successful the product will be. Sure, I understand
the techniques that trigger certain logics and interpret
certain behaviour, but it annoys me when the studies
and analyses are used to ensure that one thing rather
than another is more acceptable.
Would you agree that design has expanded its horizons to encompass almost any field?
Not quite, for example, I believe that food design is a
sign of decay. I agree with advancing the evolution of
food in terms of the sensorial nature of flavour, of the
various levels of perception, but food design concerns
ners
solely the aesthetics, at the risk of abusing its essence.
This is a case of meddling with design that I could well
do without.
What is your idea of contemporary beauty?
Contemporary beauty is the result of the stratification
of past elements that have their own history and life.
Only ignorant people buy everything brand new and
obviously so. An example of contemporary design that
I really like is the new Fiat 500, which, stripped of its
less beautiful parts, evokes the idea of playfulness and
pleasure, highly modern but with strong references to
the past.
Is there something from which you would never be
separated?
Not really material objects, which come and go, but
affections, I could never give up the friendship I have
with the persons I love. I know it seems banal, but
that’s the way it is.
How do you see yourself ten years down the line?
The same as now. Sometimes people accuse me, usually
theocratic moralists, of having a Peter Pan syndrome.
My grandfather used to say that there is always time to
get old, even Peter Pan grows, he just doesn’t get old.
It’s like I said before, my job lets me play continually.
Is there something you haven’t yet done and that
you’d really like to design?
Can I confess. Well, actually, every so often I think I’d
like to design the liquorice stick that holds lemon ice
cream. I went nuts for it as a kid but I could never really enjoy it to the full because I’d get so messy and I
found it really non-functional. Here we go again with
the Peter Pan syndrome…
Is there a future project that you hold dear to your
heart?
Yes, but nothing to do with work…I’d like to go to
bike-riding around Chile.
Jetty Livingdivani
Sidewall Porro
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