fashion houses that won’t go the kors
Versace sale to Kors leaves few global luxury brands available
GIANNI Versace’s sale to Michael Kors Holdings leaves a dwindling number of independent global fashion brands still up for grabs. Many big names, from Dior to Gucci to Yves Saint Laurent, have found shelter under the roofs of global luxury conglomerates Kering SA or LVMH. Now Michael Kors and US rival Tapestry Inc, along with China’s Shandong Ruyi and Fosun International, are looking to emulate the European giants’ multi-brand approach, even as the number of potential targets shrinks. On Tuesday, Kors confirmed that it’s buying the Italian brand for about $2.12 billion (R30.2bn) and will adopt the name Capri Holdings.
Here is a short list of brands, from fashion royalty such as Chanel to niche brands like Etro, that so far have eluded the reach of financial investors or luxury moguls and that would transform any portfolio.
CHANEL
It’s the epitome of French elegance, founded by Coco Chanel, creatively run by Karl Lagerfeld and beloved by affluent customers who can shell out thousands for a signature bouclé jacket or a leather handbag. While the closely held company has become more transparent by reporting some financials, including sales of $9.6bn (R137bn) last year, any suitor faces a formidable challenge: brothers Alain and Gerard Wertheimer, who own Chanel and have shown no intention to sell. In June the firm said it wanted to remain independent.
FERRAGAMO
Italian shoe- and tie-maker Salvatore Ferragamo SPA is trying to orchestrate a relaunch, spending more on technology and marketing to capture a younger audience. In February, it announced that its chief executive would leave after less than two years. The luxury house is controlled by descendants of Salvatore Ferragamo, who founded the company in Florence in 1928 and went on to make shoes for Audrey Hepburn and handbags for Margaret Thatcher. The firm has a value of €3.5bn (R58bn), down from a €5bn peak a few years ago.
MONCLER
Moncler SPA is evidence that niche can become mainstream. Nearly defunct a few years ago, it’s turned puffy, shiny winter jackets and accessories into must-have items for the slopes of Courchevel or the Champagne-fuelled apres ski and polo tournaments of St Moritz. The brains behind the rebirth is Remo Ruffini, who is also Moncler’s biggest shareholder and took the company public in 2013. Today, Moncler is worth €9.5bn. That’s a lot of puffy jackets, even at €1 000 a pop.
PRADA
After a few years in the doldrums, Prada SPA found its groove again focusing on what it does best: quasi-ironic designs such as blockheeled loafers, comic-book images and psychedelic prints, winning a loyal following for creative director, majority shareholder and co-chief executive Miuccia Prada.
GIORGIO ARMANI
The man behind the namesake company has been in business for more than four decades, with creations for catwalks as well as gangster movies of the 1930s. Armani spearheaded the expansion of luxury brands into new fields, adding everything from jeans to hotels and home furnishings. Armani has said that as long as he’s alive, he won’t give up control of his empire, which had sales of about $2.9bn in 2016. But times have been tough on Armani, who’s whittling down his line of brands.
BURBERRY
From utilitarian trench coats to tartan-covered shirts, Burberry Group Plc is quintessentially British: both rebellious and traditional, and perfect for soggy weather. It’s also attempting a rebound after recruiting a new chief executive officer and creative director, both Italian. As a publicly listed company without a major single shareholder, there are few hurdles to a takeover -- besides a price tag that could easily creep above $13.1 billion.
THE NICHE PLAYERS
Besides these global powerhouses, there are a few family-owned brands with niche appeal that might attract covetous glances.
Etro, with its psychedelic paisley designs, remains in family hands, while Missoni, known for its colorful zig-zag knit designs, sold a minority stake to Italy’s state-backed Fondo Strategico Italiano earlier this year.
Fancy some high-end cashmere, like the humblebrag T-shirt favoured by Mark Zuckerberg? Then Brunello Cucinelli might make an interesting target. Publicly listed, the company from Perugia has a market value of 2.3 billion euros.
If leather goods and sleek loafers are the object of desire, there’s Tod’s SPA, with a market value of close to 2 billion euros and its signature rubber-spiked shoes. The company, which also owns a majority of shoe companies Roger Vivier and Hogan as well as clothing maker Fay, is controlled by the family of Diego Della Valle.