EXCLUSIVE: Palm Angels to Show in Paris, Expand Womenswear, Open Stores in U.S.
MILAN — Francesco Ragazzi is all grown up — and so is his brainchild Palm Angels.
The brand has been logging a yearly high double-digit growth since 2017 and has several projects in the pipeline, including a fall 2023 show in Paris during fashion week; the expansion of its womenswear category; a product elevation; store openings in New York, Paris, Seoul, and Costa Mesa, California; the launch of a unisex fragrance produced in-house at the end of 2023 or early 2024, and the development of more accessories, knitwear and outerwear.
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On top of that, in April Palm Angels will move into new headquarters in Milan, which founder and creative director Ragazzi sees as an additional metaphor of “growing up and leaving the home you shared with your parents.”
That would be the New Guards Group’s stately building in the city, which Palm Angels is giving up to move into a new palazzo in Via Broletto, opposite the Ferrari headquarters and on a floor above the Chanel offices — which is all fairly impressive given that the brand is only seven years old.
In an exclusive joint interview, Ragazzi, flanked by chief brand officer Stefano Robino, does not forget to credit those who believed in his vision, such as Davide De Giglio, cofounder of New Guards Group and who helped him “develop my creativity into a business.” Likewise Remo Ruffini, chairman and chief executive officer of Moncler, where Ragazzi worked for nine years, starting as an intern after graduating in fashion communication at Milan’s IED Istituto Europeo di Design school, rising to the role of artistic director. Ragazzi has also been a guest designer for the Moncler Genius project.
Asked about the relationship with New Guards Group, the Off-White licensee that in addition to Palm Angels includes Marcelo Burlon County of Milan, Heron Preston, Alanui and Kirin Peggy Gou, among others, Ragazzi described it as “a creative incubator, a platform that allows you the possibility to express yourself and provides production, logistics and finance, but then the brand walks on its own — just as parents would let their child do.”
Palm Angels is the second fastest-growing brand within the New Guards Group portfolio, said Robino, who declined to reveal company sales as per group policy.
While Ragazzi and De Giglio each had a 50 percent stake in Palm Angels, when New Guards Group was sold to Farfetch in 2019, each retained a 20 percent shareholding.
Day-to-day operations have not changed after the Farfetch deal, but Robino said Palm Angels has been moving away from a cross-functional to a more vertical and structured organization, with an injection of new human resources to support the expansion — including Zegna and Moncler alum Domenico Galluccio as marketing and communication director.
Ragazzi said that when he launched the brand, he and some of his peers introduced a new, “more direct” way to communicate with consumers, which was “less stiff, less institutional and freer” compared with the past. At the time, Palm Angels was “on a highway with no traffic” but, in time, “big luxury giants have learned how to be closer to the new generations and we are in competition with them — and they have much more financial resources.” For his part, he has turned his attention to increasing the quality of his products, with a more timeless look and elevated content.
“There are enormous opportunities, and the world is moving so quickly, that one must adapt accordingly,” said Robino. “The size of our company allows us to be agile.” He also pointed out that Made in Italy production and an “Italian mindset” contribute to offering the top quality they seek.
While Palm Angels was launched as a menswear brand, they have seen a growing interest from women buying into men’s apparel, so that a key goal is to develop the women’s business. Menswear represents 80 percent of sales. “We are aiming at increasing the women’s business to at least 35 percent in the next three to five years,” said Robino.
To highlight this category, Ragazzi, who has staged shows in Milan and New York before, has chosen to show in Paris during the next women’s fashion week — although there will also be some menswear looks, he said, while declining to provide details about the location and the exact date for the time being.
Ready to wear accounts for 90 percent of sales, but, based on growing interest in sneakers and women’s shoes, Ragazzi and Robino see strong potential in the footwear business. Sneakers currently account for 6 percent of total sales. Accessories — bags and leather goods — make up for the rest, but the objective is for shoes and accessories to grow and reach 30 percent of revenues, and for apparel to represent 70 percent. Jersey shirts and outerwear account for 50 percent of the business.
Despite the tragic consequences of the COVID-19 pandemic, Ragazzi admitted that the lockdowns propelled the brand’s digitally driven business, with strong consumer demand for sweatshirts and pants, T-shirts and easy and comfortable looks.
For the brand, which also has kids’ and eyewear collections, it is also a priority to respond to customers’ growing demand for outerwear and knitwear by expanding these categories. The collaborations with Moncler, Missoni and Vans have helped support this strategy.
Last summer, Palm Angels and Missoni launched a co-branded men’s and women’s collection that included tracksuits and zippered cardigans in signature Missoni patterns, and hoodies in solid tones decorated with waistbands or drawstrings in graphic motifs. Spray paint splatters peppered sweatshirts, oversize T-shirts and dresses. Angela Missoni and Ragazzi are part of an extended family as he is the nephew of Bruno Ragazzi, Missoni’s longtime partner.
The Vans Vault x Palm Angels collection of sneakers bowed last fall.
“When you collaborate with the best in class, you always learn something. It’s an advantage to work with leaders in a specific segment,” said Ragazzi.
“We collaborate with brands that have a history,” echoed Robino.
Most recently, as reported, Palm Angels inked a three-way collaboration with Tod’s and Moncler which was unveiled earlier this month for fall 2022.
The men’s and women’s collection hinges on two Tod’s signature shoes, reinterpreted by Palm Angels for Moncler Genius, with a dedicated communication campaign fronted by Naomi Campbell. The “Tod’s x 8 Moncler Palm Angels” project is part of Tod’s Factory, a creative laboratory launched in 2018.
Raising the lid on a box containing the Gommino loafers, Ragazzi still marveled at his brand — highly recognizable with its Gothic lettering — being inscribed alongside that of Tod’s and Moncler. “I grew up with these brands, I am humbled and proud of this,” he said.
Ragazzi started Palm Angels in 2011 as a photographic documentation of the skater culture in Los Angeles. The project became a photographic book, published by Rizzoli in 2014, and the fashion line was launched the following year.
Europe remains Palm Angels’ main market, accounting for 45 percent of sales, and the U.S. market follows, representing 25 percent of total revenues. “The perception is that this is an American brand because of its laid-back attitude — it’s a natural association,” said Ragazzi. “In any case, this is a super key market for us.”
To wit, the company opened two directly operated stores in the U.S. last year, in Miami in August and in Las Vegas in November, and a directly operated unit will open in New York at the end of May on Greene Street. Ragazzi highlighted its positioning, near Amiri, Loewe and Saint Laurent, among others.
In October, Palm Angels will open a directly operated store in South Coast Plaza in Costa Mesa. The designer will once again work with French architectural firm Gilles & Boissier, which conceived the Milan directly operated store for the brand that opened last year to convey “a strong retail identity.”
With the new additions, there will be six directly operated stores by the end of 2023.
Asia and the Rest of the World area (the Middle East and South East Asia) each account for 15 percent of sales.
“Our goal is for the U.S. to represent 30 percent of sales,” said Robino. Likewise, he is aiming for Europe to account for 30 percent, Asia for 35 percent and the Rest of the World for 5 percent.
The retail rollout will also include the opening of a franchised store in Seoul around March next year and the biggest unit for the brand in Paris on Rue Saint-Honoré, also in March. “It will cover almost 3,900 square feet over two floors,” said Ragazzi of the directly operated store in the French capital.
“Asia is still a young market for us and we see a strong appetite for the brand, so our goal is to further grow in Asia and in China in particular,” said Robino. A franchised store opened in Wuhan a month and a half ago. Palm Angels is present in Hong Kong, Bangkok and Hainan through franchised stores, which total seven globally.
Wholesale accounts for 80 percent of sales, franchised stores represent 15 percent and retail 5 percent of the total.
Robino said that the objective is to have a more balanced distribution, strengthening the retail channel and growing it to account for 30 percent of sales through the opening of stores in strategic cities and major resort destinations. The company currently has 350 wholesale accounts.
Asked about his dream project, Ragazzi said he would like to “make Palm Angels the brand of the future. After all, I grew up with the big established brands and they started somewhere, too.”
