Plus, American malls look to digitally native brands for survival.
These are the stories making headlines in fashion on Monday.
Chanel dismisses sales rumor as revenue surpasses $11 billion
Chanel‘s continued success has fueled talk that it could be valued at €40 to €50 billion. But Philippe Blondiaux, Chanel’s global chief financial officer, reiterated in an interview with Business of Fashion on Monday that the company is not on the market. “Chanel is not for sale, Chanel is not preparing for an IPO, I just want to reconfirm that for the hundredth time this year,” he said. This statement coincides with the release of the French fashion house’s financial results, which reveal that the company generated $11.1 billion in global sales in 2018, up 10.5% on a comparable basis year-over-year, with operating profit hitting nearly $3 billion, up 8% from 2017. {Business of Fashion}
Tamara Mellon raises $50 million in Series C funding
Tamara Mellon announced a $50 million Series C round of financing on Monday, making it one of the largest to date for a female-founded fashion brand. London-based firm Centricus led its latest round of funding, bringing the brand’s total raise to $87 million. With this investment, the company plans to expand internationally, open more physical retail stores — including five stores over the next year — and make manufacturing upgrades. {Fashionista inbox}
American malls look to digitally native brands for survival
American malls are looking to direct-to-consumer brands to buoy their businesses. To get these brands to set up physical retail posts, malls are offering them leases that are customized to their needs with upgrades that speak to the lifestyles and expectations of their customers. They’re also bringing in popular businesses that deviate from retail to create a one-stop shopping center, as well as providing shoppers with a trip-worthy experience by getting thoughtful about the amenities and ambiance provided. {Glossy}
Five investors place bids to save Roberto Cavalli
Five potential investors showed up for the rescue of Roberto Cavalli, which filed for Chapter 7 bankruptcy in April. According to Reuters, the Italian fashion house received three binding offers for taking over the whole group, one binding proposal for just some assets, as well as a non-binding expression of interest. The board will review the bids over the next few days, with the goal of choosing the best offer to ensure the industrial continuity of the luxury group. {Reuters}
The wholesale distribution model no longer makes sense for big brands
Because distribution is no longer a challenge for most brands, selling directly is more profitable and allows them to create a one-to-one relationship with the consumer. This means that the wholesale distribution model, which comes with inventory risk and high working-capital requirements, no longer makes a lot of sense for established labels. It does, however, make sense for emerging brands, because partnering with a multi-brand retailer can help with name recognition. {Business of Fashion}
Meet the streetwear appraiser for The RealReal
Sean Conway is the senior valuation manager at The RealReal and is helping the luxury consignment retailer as it seeks to grow its men’s division. WWD spent a day with the streetwear pro, who prior to joining the resale site, worked in retail at Dover Street Market and Kith, to observe how he drums up valuations on everything from Nike Off-Whites to a Gucci T-shirt in a matter of minutes. {WWD}
Fashion’s hunt for an eco-friendly leather alternative continues
Many fashion brands continue to use leather, even as consumer interest in animal-free products continues to mount. One widely-used leather alternative is polyvinyl chloride, or PVC, which is favored by brands for its low price and visual and tactile similarities to cow leather. The problem is that it is plastic and petroleum-based and thus not eco-friendly. Some fashion labels have started using leather substitutes drawn from agricultural waste, though the higher prices limit mass-market appeal and product quality is uneven. And while bio-fabricated leather, which is friendly to both animals and the environment, exists, it is still several years away from commercial viability. {Vogue Business}
Fashion designer and socialite Gloria Vanderbilt passes away at 95
Fashion icon Gloria Vanderbilt passed away Monday morning at the age of 95. “Gloria Vanderbilt was an extraordinary woman, who loved life, and lived it on her own terms,” her son Anderson Cooper said in a statement. “She was a painter, a writer and designer but also a remarkable mother, wife and friend.” {CNN}
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Source: Fashionista.com
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