Design Holding Sees 1B Euros in Sales; No IPO Plans
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MILAN — Italy’s leading high-end design, furniture and lighting company Design Holding said Wednesday that it closed 2022 with a surge in sales and expects to reach the 1 billion euro mark in just a few years.
Founded in November 2018, Design Holding comprises leading brands B&B Italia, Flos, Menu, By Lassen, Lumens, Louis Poulsen, Arclinea, Maxalto, Azucena and produces Fendi Casa through a joint venture with the Roman fashion house. It has a presence in more than 130 countries.
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In the 12 months ended Dec. 31, pro-forma revenues rose 15.7 percent to 867.6 million euros, compared with 2021, boosted by business in the U.S. and Asia Pacific, as well as its high-end contract business.
The figures take into the account its 2022 acquisition of Designers Company, a Danish group with complementary brands such as Menu and By Lassen.
In an exclusive interview with WWD, Design Holding’s chief executive officer Daniel Lalonde said the company is well-poised to reach 1 billion euros in sales in the “medium term.” Lalonde responded to unconfirmed media reports speculating that the company was preparing for an IPO. Currently, he said, Design Holding has no plans to push ahead with a market listing.
“We’re focusing on growing our business, making it stronger, but we are not working on an IPO scenario today. It doesn’t mean we are never going to work on an IPO, but markets are not favorable, and we have decided to focus on executing our current plans,” the former LVMH executive said.
Lalonde listed rising inflation, interest rates and trouble in the banking sector among challenges for the design sector in 2023.
Earnings before interest, taxes, depreciation and amortization rose to 211.8 million euros from 190.3 million euros in 2021, or 24.4 percent on revenues.
Operating profit increased to 164.3 million euros versus 151.8 million euros in 2021, representing a 18.9 percent margin on revenues. The 2021 EBITDA and operating profit comparison figures do not take into account the earnings posted by the recently acquired Designers Company.
The group also said it generated 153.5 million euros in cash.
Given the strong full-year results, Lalonde said the company is also well-poised to make even more acquisitions as it inches toward its long-term goal of becoming the LVMH of home.
“We want to make acquisitions that make sense and we are open to brands that create value together,” he pointed out, adding that there is still huge potential for growth in the design sector.
On a global level, Design Holding saw its business in both North America and Asia Pacific grow double digits, 33.1 percent, and 27.2 percent, respectively.
In 2022, Design Holding signed important high-end projects, worth a total of 240.5 million euros, particularly in the hospitality, residential, corporate and retail sectors, including the Bulgari Hotel in Paris, M+ Museum in Hong Kong and La Bella Vita in Taichung, Taiwan.
In 2021, the Italian conglomerate inked a joint venture with Fendi forming Fashion Furniture Design, or FF Design, to develop the Fendi Casa business. The line was previously produced and distributed by licensee Luxury Living, operating through Club House Italia.
“The results achieved by Design Holding in 2022 are testament to the excellence of our brands, validation of our business strategy, and the talent of our people,” added Lalonde, who was appointed CEO of the group in October of 2021.
Going forward, the company is focused on boosting the desirability of its brands, enhancing the direct-to-consumer journey, which includes directly operated, monobrand stores, e-commerce websites, expanding with a focus on North America, China and the Middle East and fortifying its leadership in the high-end contract business.
In Greater China, Design Holding hopes e-commerce will aid it in welcoming a new demographic of luxury-conscious Millennial shoppers. Currently, Design Holding directly operates its e-commerce sales across all brands, but only in North America and Europe. Its e-commerce business is expected to rise in the double digits, Lalonde said, noting that lighting and accessories remain the main catalyst for e-commerce sales.
Alongside these key focuses, the group remains committed to making further progress in accelerating its environmental, social and governance (ESG) strategy and reducing greenhouse gas emissions on its operations.
Under the aegis, “We design for a beautiful life,” Lalonde said Design Holding will roll out a new store concept for the first time in the Miami design district this summer, in time for Art Basel.
Under one roof, all of its brands will dialogue with each other in one open space, unlike a showroom concept where brands and their products are isolated from one another.
Design Holding’s catalogue features iconic objects designed by world-famous designers such as Achille and Pier Giacomo Castiglioni; Tobia Scarpa; Luigi Caccia Dominioni; Poul Henningsen; Arne Jacobsen; Antonio Citterio; Gaetano Pesce; Philippe Starck; Piero Lissoni; Konstantin Grcic; Jasper Morrison; Patricia Urquiola; Michael Anastassiades and many others.
Last year saw the expansion of innovative products and potential future icons like the Thea kitchen by Antonio Citterio for Arclinea; Allure O’ table and Flair O’ by Monica Armani for B&B Italia; Almendra suspension lamp by Patricia Urquiola, and the Luce Orizzontale by R. & E. Bouroullec for Flos.
New collaborations have also taken place across the fashion industry, culminating in The Stella McCartney x B&B Italia three-piece capsule that launched at Art Basel in December 2022, marking the British eco-conscious pioneer’s first interiors collaboration.
“What we share with luxury brands is the same customer. He or she has the same Birkin bag, a Tank watch [Cartier], Jimmy Choo shoes, a Camaleonda sofa from B&B Italia and an Artichoke lamp from Louis Poulsen.”
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