Phoebe or Not to Be?
That is the question.
by Lauren Sherman
In fashion, 2023 was a year of confusion, but perhaps the most confusing element of all was how to feel about Phoebe Philo and her long-anticipated, drops-driven return to the scene. Actually, don’t call them drops, the Phoebe Philo people say. Internally, the Supreme-style product releases are referred to as “deliveries.” After all, they’re not sloughing off $40 screen-printed tees, are they?
No, they are selling what the industry’s top critics deemed the future of fashion: four-figure cotton shirts with collars stitched to pop, five-figure knitted dresses covered in radiating sequins, and leather coats so expensive you have to ask about the price. But along with the expected insider praise, pedestrian fans of all ages pushed back, declaring that the world had changed in the five years since Philo resigned from her post as creative director of Céline, the job that made her so famous. Phoebe Philo, the line, was primed to fall short of the lofty expectations of its demanding, emotional audience.
Two months after the initial launch of a brand that took more than two years to materialize, Philo and her team are preparing for the real test: a second collection launch that is slated, according to press materials, for “Spring 2024.” There is also talk of an offline expansion in the form of shop-in-shops at a handful of retailers in Europe, the U.K., and the U.S. (A rep for Philo did not respond to a request for comment on the speculation.)
Will people keep buying it? The October lift-off was as stressful on the inside as it was on the outside, according to those who lived it. There are tales of typical launch-day calamity, compounded by the wonkiness, intentional and unintentional, of the site. Looking back, Philo’s reintroduction into fashion society was messy and unsettling. Some of it was chaotic good: the grainy imagery, the deliciously vile typeface of the logo, the second “delivery,” with its studded gold bikini bottoms and a dirt magnet of a white handbag. The collection, in many ways, felt dangerous after years of designers playing it safe in the long shadow Philo cast during her time at Céline.
But there was plenty of chaotic evil in there, too, and not just the laborious return process that requires the unsatisfied customer to email a photo of themselves wearing the garment or accessory back to the company, which then reviews it and approves a return. The reality is that the customer is providing Phoebe Philo with invaluable information on how the garments fit real people. A circuitous data grab. The bigger problem seems to be that, after the initial thrill, those who have kept their purchases are hardly effusive. “The surprise is, everyone I knew who bought it isn’t obsessed and loving it and either returned it or sold it,” one retail executive told me.
We were going back and forth, attempting a back-of-the-envelope estimate of how much product the company sold in that first “delivery.” It’s hard to pin down because the minimum manufacturing run for a style is typically 100 units—except when the units are priced so high. Check back with me in a year. The company was only required to file its 2022 financial statements on the British business registrar at the end of last month.
That report does tell an interesting story, though. By the end of 2022, the Phoebe Philo company had 49 employees, with £18 million in net assets, down from nearly £26 million in March 2022. (And £14 million cash on hand, compared with £25 million earlier in the year.) The dip is understandable: The number of people on the payroll more than tripled in less than a year, and they were prepping for a launch that was meant to happen much earlier than it did.
As for how much Philo was paying herself? “An amount of £259,677 was paid to Phoebe Philo Studio Limited in respect of consulting fees,” reads a note at the bottom of the report. That’s nothing compared to her counterparts at minority investor LVMH, and nothing compared to what she was making while employed full-time at the group. This is a startup, after all, and her main compensation is her equity.
Phoebe Philo will likely lose money for the next several years. We know that this is how the fashion business works, even for well-funded companies with the right distribution, manufacturing, and operational know-how. My honest feeling is that, once the product is sitting in a store, and customers can go in, try things on several times over, and perhaps buy a few things on sale after Christmas, there will be less resentment over the pricing, and more excitement over the purchases they’re making. Philo knows what her woman wants because she is her woman. It’s just a matter of delivering it in the right package.