Plus, how the puffy vest became a status symbol.
These are the stories making headlines in fashion on Wednesday.
New products drive sales at Nike
Nike‘s shares rose more than 5.5% in after-hours trading Tuesday, topping analysts’ expectations for its fiscal first-quarter earnings. Sales increased about 7% due to Nike’s decision to sell more merchandise in stores and its investment in product innovation. Plus, after vowing to do a better job at making gear for female shoppers, Nike’s women’s business doubled during the quarter. {CNBC}
Olivier Rousteing documentary reveals his backstory
“Wonder Boy,” a documentary on Balmain designer Olivier Rousteing, is set to premiere after the Balmain Spring 2020 show this Saturday. We seem to know Rousteing from his lavish social media and close relationship with the Kardashians, but his origin story remains a mystery. Directed and produced by Anissa Bonnefont, “Wonder Boy” aims to reveal Rousteing’s childhood as a mixed-race, adopted boy in France and the trials he’s faced in truly understanding who he is. {The New York Times}
How the puffy vest became a status symbol
The puffy jacket’s little brother, the puffy vest, has become a favorite fashion choice for the extremely wealthy, namely America’s top 1%. This cold-weather accessory — sans sleeves — is often seen on Amazon‘s founder Jeff Bezos and billionaire investor John Henry, and has quickly become big business for luxury brands. {Business of Fashion}
Private equity doesn’t always work for beauty brands
In 2019, there have been 43 private equity deals within the U.S. beauty market and, as of August, those deals have amassed $10.6 billion. Because these transactions are so large, brands have taken on heavy debt in order for private equity owners to facilitate the purchase. Companies like Julep struggled to pay off their debt because of a decline in brick-and-mortar sales, and ultimately filed for bankruptcy. {Glossy}
Gucci execs are under investigation for tax scandal
Gucci has been under fire after showing straitjackets at Milan Fashion Week, and now, the brand is facing a financial dilemma. Italian fiscal authorities alleged the luxury brand has avoided paying higher tax rates in Italy and have probed more than a dozen of Gucci’s current and former executives for insight into their tax-avoidance scheme. {Business of Fashion}
LVMH makes moves in Notre-Dame reconstruction
Trailing the tragic fire of Paris’ Notre-Dame Cathedral, LVMH announced its contribution of 200 million euros to fund the reconstruction of the renowned monument. The pledged payments by LVMH totals the sum of donations to the cathedral’s reconstruction to 380 million euros. {WWD}
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Source: Fashionista.com
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