From Frasers to Kering to Tamara Mellon, Who’s Moving and Shaking in Global Retail

Global fashion brands have been a hotbed of activity since the start of 2023. This roundup reveals who is doing what in fashion retail.

Frasers Ups Stake in Boohoo

Frasers Group plc has raised it stake in fast-fashion e-tailer Boohoo Group to nearly 6.8 percent from 5.0 percent last month, according to a regulatory filing last week.

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Frasers’ growing stake in Boohoo complements its ownership of Missguided and I Saw It First. It also has a 10.6 percent equity stake in Asos.

Frasers on Thursday posted full year results for the 53 weeks ended April 30. Pre-tax profit was nearly doubled to 660.7 million pounds ($846.9 million) on a 15.8 percent revenue increase to 5.57 billion pounds ($7.13 billion). By category, its U.K. sports retail operation was up 16.7 percent to 3.08 billion pounds ($3.95 billion), premium lifestyle rose 14.8 percent to 1.212.9 billion pounds ($), international retail grew 15.2 percent to 1.083.4 billion pounds ($), and wholesale and licensing rose 12.0 percent to 188.3 million pounds ($).

Frasers is projecting adjusted pre-tax profit for Fiscal Year 2024 in the range of 500 million pounds ($) to 550 million pounds ($). That’s compared with adjusted pre-tax profit that was up 40.7 percent to 478.1 million pounds ($) a year ago.

“The Elevation Strategy is continuing to drive results across every segment,” Michael Murray, Frasers’ CEO, said. “It has been a particularly significant year for Sports Retail, demonstrating that elevating Sports Direct was the right strategy. Our investment in the store estate, our focus on strengthening key brand partnerships, and the synergies created by strategic acquisitions is now delivering very clear results.”

Frasers is entering the new financial year in a “strong position and [is] determined to unlock further growth, underpinned by our laser focus and acceleration of our Elevation Strategy,” he said.

Brick-and-mortar retail is also getting Frasers’ interest. During the last financial year, Frasers acquired The Mall Shopping Centre in Luton and The Overgate Centre in Dundee. For the new fiscal year, it soon could add another center to its properties. The company is said to have offered close to 50 million pounds ($64 million) for Junction 32, an outlet shopping center in Leeds with Jack Wills, Sports Direct, and Nike stores.

Kering takes 30% stake in Valentino

Kering has acquired a 30 percent stake in the Valentino fashion house from Mayhoola Lux S.à.r.l. in a cash deal valued at 1.7 billion euros ($1.54 billion).

Kering also the option to acquire the remaining shares in Valentino that it doesn’t own by 2028. The agreement between Kering and Mayhoola, a Qatari investment fund, is part of a broader strategic partnership that will explore potential joint opportunities. Mayhoola could become a shareholder in Kering.

Jacopo Venturini will remain Valentino’s CEO. Founded in 1960, Valentino has 211 directly operated stores in over 25 countries, with recorded revenues of 1.4 billion euros ($1.27 billion).

François-Henri Pinault, chairman and CEO of Kering, said: “I am impressed with the evolution of Valentino under Mayhoola ownership and very delighted that Mayhoola has chosen Kering as its partner for the development of Valentino, a unique Italian house that is synonymous with beauty and elegance. I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation that Jacopo Venturini will continue to lead.”

Rachid Mohamed Rachid, CEO of Mayhoola and chairman of Valentino, added: “Valentino is one of the ultimate Italian luxury authorities and we are very happy to welcome Kering as a strategic partner for the future development of the Maison de Couture. Under our stewardship, Valentino has strengthened its foundations as a highly desirable luxury brand and we will keep reinforcing the brand in the next chapter with Kering. We look forward to our partnership with Kering in Valentino and also in other potential opportunities to explore investments together.”

Kering’s investment entitles it to a seat on the Valentino board. The transaction is expected to close by the end of 2023.

Separately, Kering said first half revenue rose 2 percent to 10.14 billion euros ($9.20 billion). Net income for the half was 1.785 billion euros ($1.62 billion). First half revenue at Kering’s top money-making brand Gucci slipped 1 percent to 5.13 billion euros ($4.66 billion), as wholesale revenues fell 3 percent for the period. Kering’s Yves Saint Laurent fashion house saw revenues rise 6 percent to 1.576 billion euros ($1.43 billion) for the half.

Tamara Mellon inks merger with Titan Industries

Luxury footwear brand Tamara Mellon has merged with Titan Industries Inc.

Mellon founded the company in 2016 after selling Jimmy Choo, which she co-founded in 1996. She will remain creative director of her namesake brand. Titan is an American women’s footwear specialist and will handle the production and manage the DTC business. Manufacturing will take place in Spain, with products prices ranging at $395-$1,000. Expanded distribution will begin in Spring/Summer 2024.

“I am delighted to partner with Titan Industries as we enter a new chapter for the brand. When I started the company in 2016, I wanted to focus on DTC only, but as we have grown, both here in the US and internationally, we see an opportunity in being able to service those clients with more ease through key wholesale channels both in physical and online stores,” Mellon said.

“To have the chance to partner with an icon such as Tamara is entirely unique. Her creativity and elegance have resonated with customers for over twenty years, and her passion and enthusiasm knows no bounds,” Joe Quaknine, Titan’s founder, said.

Matalan’s upbeat following June sales growth

Despite a decline in first-quarter revenues, Matalan CEO Jo Whitfield sees profits perking up.

For the quarter ended May 27, revenue fell 8 percent to 263.6 million pounds ($339.2 million) from 286.5 million pounds ($368.7 million) last year. Revenues picked up in the five weeks ended July 1, rising 5.5 percent to 122.5 million pounds ($157.6 million) from 116.1 million pounds ($149.4 million) a year ago.

Whitfield rejoined the omnichannel fashion and homeware retailer in March as CEO. She was Matalan’s head of finance between 2002 and 2008 and later took senior positions at Asda and at Co-op, where she was CEO of its food division. Executive changes at Matalan followed the company’s sale in January to a group of investors that include key lenders Invesco, Man GLG, Tredisor and Napier Park. The lenders had taken control of Matalan at the start of the year.

Whitfield said 15 percent store growth drove June sales growth, helped by strong full price performance and improving currency and freight costs.

“We continue to closely manage our working capital and liquidity. In June we issued 25 million pounds [$32.2 million] of super senior notes to complete the 100 million pounds [$128.7 million] of new capital that was committed back in January. This injection will support the business through transition and enable us to establish stronger performance across the remainder of the year and beyond,” she said.

“We have two key areas of focus, those being driving our online channel, and improving both product choice and the strength of our price position for customers,” she said.

Christopher Kane buys back his fashion brand

Designer Christopher Kane and his sister Tammy Kane have re-acquired his eponymous fashion brand after it went bankrupt this summer.

They also bought back More Joy, the company’s accessory and swimwear subsidiary. They now own all the intellectual property assets connected to the brands.

It wasn’t immediately clear how much they paid for the brands, but it is believed to be enough to pay back in full the company’s secured creditor. Some other creditors might get some relief as well.

Julien Macdonald liquidates

Welsh fashion designer Julien Macdonald wasn’t as lucky as Christopher Kane.

Known for knitwear and hand-beaded designs, Macdonald wasn’t able to bounce back from Covid and the recent bout of high inflation.

Although Macdonald returned to London Fashion Week in February after a three-year absence, the business continued to falter. Liquidators are currently selling stock and other assets to pull in whatever cash they can to repay creditors.

JD Sports’ full immunity from CMA fines

JD Sports Fashion Plc and Leicester City Football Club engaged in anti-competitive behavior related to sales of Leicester City-branded merchandise in the U.K., the Competition and Markets Authority (CMA) said on Monday.

JD brought the issue to the regulatory watchdog’s attention in January 2021 and has fully co-operated with the probe. JD and the CMA signed a leniency agreement on July 30 giving JD full immunity from any fines. No current or former director or senior management of JD was involved in the conduct that occurred between 2018-2021, JD said.

On Monday, following the CMA’s formal decision, JD reconfirmed that it was granted full immunity from any CMA fines.

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