Must Read: Coty Raises Revenue Forecast and Cancels Partial Wella Sale, Shein Targets $90 Billion Valuation in IPO

These are the stories making headlines in fashion on Wednesday. 

Coty raises revenue forecast and cancels partial Wella stake sale
Coty Inc. raised its full-year revenue forecast, now expecting growth between 9% and 11%, and canceled the sale of its partial Wella stake "given misalignment on final deal terms," WWD reported. Back in July, Coty announced it expected to sell a 3.6% stake (equivalent to $150 million) in Wella to IGF Wealth Management. Though the partial stake sale was canceled, Coty is committed to divesting its remaining 25.9% share of Wella by 2025. Coty's fragrance brands are especially strong, with prestige fragrance growing by 25% as Burberry Goddess, Gucci Flora and Burberry Her reached the top 10 female fragrances in the U.S. for the first time in the company's history. Coty CEO Sue Nabi told WWD, "It's seven brands growing above the 20% threshold in our fragrance portfolio." {WWD/paywalled}

Shein targets up to $90 billion valuation in U.S. IPO
Fast fashion giant Shein is hoping for a $90 billion valuation as it prepares for an eventual U.S. initial public offering, which exceeds how the company is valued in private trades. In private trades, Shein's valuation dropped below the $66 billion it got in a funding round in May and was valued at between $50 billion and $60 billion. No final decision has been made on Shein's IPO, including its valuation and timing. {Business of Fashion/paywalled}

Reformation, New Balance and others launch sustainable footwear collective
Eight brands including Reformation, New Balance and Target have partnered with nonprofit climate advocacy platform EarthDNA to create the Footwear Collective. This initiative aims to promote a circular footwear economy while also minimizing waste and reducing emissions. On, Brooks Running, Crocs Inc., Ecco and Vibram are the other brands joining this collective. EarthDNA's website spotlights three main points for the collaboration: implementing sustainable materials into company supply chains, changing infrastructure to be more circular and encouraging consumers to feel enthusiastic about circular consumption. "We believe every footwear brand has a responsibility to consider how their products and production methods affect society and the environment," Deanna Bratter, vice president and global head of sustainability and ESG for Crocs, said in a statement. {Retail Dive}

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Valentino opens new flagship on Madison Avenue
Valentino opened a new flagship store at 654 Madison Ave. on Wednesday featuring three floors that are each centered on a "distinctive visual narrative." Seven-meter-high ceilings, a monumental staircase and exposed iconic steel columns fill the building while Valentino's signature red is seen throughout the store's interior design. Inspired by Italian hospitality, there are two VIP areas each with a sitting room and a dressing area that are curated to feel like an intimate apartment setting. The store will also showcase temporary art displays, and is currently showing an exhibition from Italian painter Mario Schifano curated by New York museum Magazzino Italian Art. {Fashionista inbox}

LVMH Prize applications are open now
The LVMH Prize for Young Fashion Designers is accepting applications now until Sunday, Jan. 7, 2024. The LVMH Prize for Young Fashion Designers is open to designers all over the world aged 18 to 40 who have created at least two womenswear, menswear or genderless ready-to-wear collections. The winner will receive a €400,000 endowment and a tailored mentorship with LVMH. The LVMH Prize includes three awards: LVMH Prize for Young Fashion Designers, Karl Lagerfeld Prize and the newly-launched Savoir-Faire Prize. The Savoir-Faire Prize will "reward excellence in craftsmanship, technical innovation at the service of creativity, and sustainability" and offer the winner a €200,000 endowment and a one-year mentorship by LVMH teams. The semi-final of the LVMH Prize will be held on Feb. 29 and March 1. To apply, visit lvmhprize.com. {Fashionista inbox}

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