Editors’ Top Reads: News from Kering, Berghaus, White Stuff and more…
Here are some of this week’s news and features highlights handpicked by TheIndustry.fashion team.
Luxury slump catches up with Gucci and Bottega Veneta owner Kering
I never like to see fashion brands struggling and goodness only knows it’s tough out there, so I have immense respect for anyone out there giving it a go. But I find my empathy evaporating somewhat when it comes to the luxury groups right now. Sales are dropping and they only have themselves to blame.
Both Kering and LVMH have put out lacklustre results lately, with Kering revealing this week that sales were down 15% to £3.17 billion in the third quarter. Now, some of this can be explained away by the downturn in China, the changes in distribution (a move away from wholesale in some cases), and the lag at Gucci (sales from collections by its new creative director Sabato De Sarno are said to be strong, but his work only makes up around a third of the current product assortment).
However, these brands have had this coming. Jacking up pricing and skimping on quality has caught up with them. Consumers, even if they have plenty of money, do not want to feel stiffed. And they do. Who in their right mind is paying £800 for a t-shirt these days? And you need a mortgage to buy a handbag these days, only for the hardware to fade or fall off. No wonder savvy shoppers are buying resale and seeking out products from decades past, as not only is it cheaper, but it was far better made.
I’m curious to see what the likes of LVMH and Kering do to remedy the current situation, but I’m hoping a realisation that the prices are just too high and the quality is just not good enough will factor into their thinking (along with a solid pre-loved strategy).
Lauretta Roberts, Co-founder, CEO and Editor-in-Chief.
Berghaus launches ‘Icons’ collection with Liam Gallagher fronting campaign
The ‘gorpcore’ trend is refusing to go away and, if anything, it seems to once again be gaining momentum. With that in mind, it’s great timing that British outdoor clothing brand Berghaus this week launched a new ‘Icons’ collection for AW24, inspired by three jackets from its archive – from the late 70s, 80s and 90s.
What’s more, and what is also great timing, is the brand has got long-time Berghaus fan Liam Gallagher on board to front the accompanying campaign sporting the ‘Trango’ jacket – with the ‘Madchester’ trademark zip done right up to the top.
With Liam and Noel Gallagher recently announcing a much anticipated Oasis reunion tour in 2025, it seems they are currently once again never out of the news, and now Liam in said Berghaus jacket is being plastered over billboards, murals and fly posters across London, Manchester and Newcastle (where Berghaus originates from). Love him or loathe him, he grabs your attention.
While much has been said of the highly inflated prices for Oasis’s UK concert tickets, the ‘Trango’ jacket will be another quite hefty expense at £400 if fans want to look like their idol. It will be an interesting jacket count at different locations, but my money is on the Manchester gigs to be the biggest Berghaus-fest.
Tom Bottomley, Contributing Editor.
Highlights from TheIndustry.fashion LIVE: Remodelling Fashion for a Circular Future
It’s certainly been a busy week here at TheIndustry.fashion and TheIndustry.beauty, having held two insightful events.
The first, TheIndustry.fashion LIVE: Remodelling Fashion for a Circular Future, took place on Tuesday, welcoming leading brands and retailers such as John Lewis, Farfetch, Dr. Martens, Primark, Paul Smith, Mint Velvet, COS, The White Company, Charles Tyrwhitt, Reformation, and more to gain actionable insights to help them drive a more circular fashion business.
Hosted in partnership with supply chain specialists Bleckmann, the event invited fashion industry professionals to learn from brands, retailers and industry experts from the likes of Selfridges, Marks & Spencer, Pangaia, Urban Outfitters and Hardly Ever Worn It (HEWI), amongst others, about the key steps for implementing a successful sustainability strategy, how luxury has embraced circularity, the importance of creating a company structure and culture to support a circular model, and more.
Missed out? Sign up to TheIndustry.fashion’s daily newsletter to be the first to hear about future events. However, in the meantime, here are some highlights and key learning from this week’s event.
Sophie Smith, News Editor & Senior Writer.
Phase Eight and Whistles owner TFG acquires White Stuff
In terms of the luxury market, mergers and acquisitions have been making headlines consistently, from Apollo acquiring END to Mytheresa acquiring Net-A-Porter. However, this week saw the acquisition of a fast-becoming high-street staple – White Stuff.
Established in 1985 by George Treves and Sean Thomas, White Stuff now boasts a portfolio of 113 stores and 46 concessions in the UK in retailers such as John Lewis and Marks & Spencer.
The successful chain was purchased by TFG London (yes, can you believe it? Not Frasers!). The acquisition will be funded from the group’s recently refinanced debt facility. It marks a significant milestone in TFG’s medium-term strategy to expand its portfolio of brands. It first acquired Phase Eight in 2015 and then added Whistles in 2016 and Hobbs in 2017 to the group.
Is TFG on a path to rival Frasers, John Lewis and NEXT, who have all made it their mission to dominate the British high street via retail acquisitions? Or will we see another seven-year hiatus?
With White Stuff and its history of solid financial performances (for the year to 30 April 2024, the business reported a record result with revenue of £154.8 million) in tow, the thriving group may be prepped to snap up more retailers on the ever-changing British high street.
Chloé Burney, Senior News & Features Writer.
