Stella Mccartney Business To Expand

[stylegurrl]

Stella McCartney Business to Expand

Stella McCartney is planning to open stores in Milan and Paris as the Gucci Group-owned company is planning its growth over the next three years. With sales rising by 50 per cent this year, the Group's emerging brand is on course for solid profitability, according to James McArthur, an executive vice-president of Gucci Group.

According to The Times, accounts for the British arm of Stella McCartney's business show that Gucci invested £6.5 million in the company in the year to January 31, 2004, while losses for the UK business were £3.9 million compared with £4.5 million a year before. Mr McArthur stated that Stella McCartney Ltd, which includes design and creative studios, some product development and the London store, is responsible for "a great part" of the brand's losses and a small proportion of turnover, but refused to outline global losses.

National sales for the brand increased from £434,000 to £2.5 million in the UK business and continues to grow and expand. The main focus will be to expand sales in major European markets such as France, Italy and the UK as well as further expanding into US market. The brand, which has had collections in stores for less than three years, is on track for worldwide sales of more then £20.8 million from sales of clothing, accessories as well as royalties from perfume, in the year to January 31 2004, up from £20 million in the previous 12 months.

 

[Theory]

I thought Stella was a sinking ship?
She is so inconsisent in her designs from season to season.....but I do think the brand has potential and I guess the increased (healthy) sales support this......I think she needs to better define her market, is she going to start brandhing off and being in retail stores like Neimans.....or stick to being a bit more exclusive....I'm guessing it will be the former.....

Why do these designers, ranging from Prada to Stella insist upon developing these shrines, or costly flagships that never breakeven? Even Prada Soho, while heralded for its archeitural *innovation* doesn't translate into increased sales...which is the bottom line...and Miuccia can clearly take more risks than Stella can.....we shall see....

 

[clueless]

I heard her fragrance was really nice

 

[AlexN]

Originally posted by Theory@Nov 4 2004, 09:41 PM
I thought Stella was a sinking ship?

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Same here. I'm confused.

 

[BrothaG]

Originally posted by AlexN@Nov 5 2004, 09:43 AM
Same here. I'm confused.

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Second that. I really don't get it.

 

[faust]

Is Gucci owned by Enron?

 

[mikeijames]

Originally posted by AlexN@Nov 5 2004, 09:43 AM
Same here. I'm confused.

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i think her sales are propped up by her fragrance...and i can't be certain how it works but does the stella mccartney company get money when its commissioned to make clothes for that sky captain and the world of tomorrow?

 

[macchiom]

Originally posted by Theory@Nov 5 2004, 04:41 AM
Why do these designers, ranging from Prada to Stella insist upon developing these shrines, or costly flagships that never breakeven? Even Prada Soho, while heralded for its archeitural *innovation* doesn't translate into increased sales...which is the bottom line...and Miuccia can clearly take more risks than Stella can.....we shall see....

[snapback]418354[/snapback]​

It’s all about creating an image!

While the single flagship store might not necessarily generate a profit the overall hype and desirability it creates is often enough to more than offset the cost.

Pure marketing…

 

[faust]

Originally posted by macchiom@Nov 5 2004, 02:45 PM
It’s all about creating an image!

While the single flagship store might not necessarily generate a profit the overall hype and desirability it creates is often enough to more than offset the cost.

Pure marketing…

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Yep. It's even more than that - it's a drug, that feeling of power.

BTW, Theory, I read that Prada's Bway store is projected to NEVER make enough money to pay for itself .

 

[Spacemiu]

Originally posted by faust@Nov 5 2004, 08:54 AM
Is Gucci owned by Enron?

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I don't know my friend works at her LA store and she said hardly any one buys.

 

[stylegurrl]

Recently, I have been seeing more celebrities (mostly B-list though) in her clothes so maybe this news is entirely true. She seems to be held in higher regard in the UK than in the US. Her perfume is being advertised more now-Sephora has it in their new catalog and there have been ads in fashion mags.

 

[Imnangel]

she is a dreadful designer. Do you think she would have made it without a certain famous father???? NO CHANCE!!!!!!!!!!!!!!!!!!!!!!!!

Living of daddy's reputation - she is a waste of space (sorry to rant)!!

 

[Benn98]

Stella McCartney-Kering Break Up Well Underway

February 23, 2018 05:20
By Lauren Sherman

BoF has learned that the French luxury group is selling its 50 percent share in the label, with a formal transition process already in motion, according to a source with first-hand knowledge of the matter.


LONDON, United Kingdom — After a 17-year partnership, French luxury group Kering is selling its 50 percent share of Stella McCartney back to the namesake designer, BoF has learned. The public announcement, originally slated for early January, is imminent, according to a source with first-hand knowledge of the discussions.

According to the source, the Stella McCartney HR team is preparing a booklet outlining the details of the separation to answer outstanding questions and ease employee concerns. However, both parties issued a joint statement saying nothing has been confirmed.

“Kering and Ms Stella McCartney have been operating and growing the Stella McCartney brand since 2001 as a 50/50 joint venture. As already stated, as it is customary between stakeholders, there are regular discussions about the future of the partnership," Kering and Stella McCartney said. "Any significant change to the current relationship would be made public at the appropriate time. Any piece of information circulating to this respect can only be considered as speculation.”

To be sure, unravelling the partnership will be a time consuming, expensive process. (McCartney’s father, musician Paul McCartney, has had a role in financing the buy-back from Kering, said the source, though this could not be independently confirmed. A spokesperson for McCartney said her father has never been involved with the business.)

According the source, Kering’s brands will be forbidden from hiring Stella McCartney employees during the transition process, which could take as long as two years.London-based retail strategy consulting firm Javelin, part of global advisory firm Accenture, is working with Stella McCartney to reorganise during the transition period, creating a blueprint for the newly independent Stella McCartney business. (Kering is listed as a client on the company’s website, alongside other fashion brands including Tommy Hilfiger, Calvin Klein, Net-a-Porter, Jimmy Choo, as well as Kering-owned Puma.)

While Kering and Stella McCartney have acknowledged that there have been separation talks on more than one occasion over their 17-year partnership, the exact reasons for the break, and why it's happening now, are not yet known. The reported split does come at a time when Kering is streamlining its portfolio and focusing its attention on blockbuster brands including Gucci, Saint Laurent and Balenciaga. In early January, the group announced that it would spin off German sportswear brand Puma, inching the parent company further toward becoming a pure luxury player. In the fiscal year ending December 31, 2017, consolidated revenues were €15.5 billion (about $15.2 billion at current exchange), up 27.6 percent on a reported basis. Sales within the luxury group, which excludes Puma, Cobra and skate brand Volcom, were up 27.5 percent on a reported basis.

Stella McCartney first launched as a joint venture with the Gucci Group (once a subsidiary of what is now known as Kering) in 2001. At the time, the Gucci Group was run by chief executive Domenico De Sole and Tom Ford, who designed both Gucci and Yves Saint Laurent. (McCartney arrived from Chloé after a short but well-received stint as creative director.) Alexander McQueen joined the group in 2000.

Over the next two decades, McCartney and Kering built a global brand, driven not only by the designer’s exuberant sportswear but also by her commitment to animal-free fashion. McCartney’s faux-fur and faux-leather apparel and accessories helped to elevate the materials in the eyes of the consumer, serving as an example for other brands and a resource for Kering’s entire portfolio, which now also includes Balenciaga, Christopher Kane and Brioni. In 2016, Stella McCartney published its first environmental profit-and-loss account.

Kering does not break out the revenues of its smaller houses, although in 2015 market sources estimated that Stella McCartney’s annual global sales were somewhere between $150 million and $200 million. However, the annual retail value of Stella McCartney products is likely significantly more thanks to branded collaborations with Procter & Gamble for beauty (including a hit fragrance business), Adidas for activewear and Bendon for lingerie. Her collection with Adidas, first launched in 2004, has become a brand in itself. McCartney then launched menswear in 2016.

As for how Stella McCartney may transform under the founder’s absolute rule, a push to drive more direct sales could be in the cards. In May 2017, the company announced that it would open four new store locations, including a second store in Paris, one in Florence, in one Costa Mesa, California, and a second location in New York City. A year earlier, it also assumed control of store operations of its three Hong Kong stores, which were previously managed by a local partner. The brand’s retail store portfolio currently includes 52 locations, with another store on London's Bond Street on the way.

Source: Businessoffashion.com

 

[dodencebt]

Wow, that's quite a bold move! In these uncertain times when everyone is selling stakes of their companies to investors, buying fifty percent of your brand back to own it entirely requires balls. I haven't necessarily been a big Stella fan over the years, but I wish her luck.

 

[Benn98]

I think she may be onto something and it says a lot about Kering that they're prepared to do this. Stella always ran her brand with (seemingly) full autonomy. I predict it will go even better for all the supplement concepts.

Now only if the Dior group would give Galliano his namesake back which they ROBBED off of him.

Unrelated, the but the comments way above crack me up!

 

[Lola701]

I’m a big fan of Stella’s clothes and this is perfect for her. Now she will be totally in control of her production and based on her ethic, it is much more honest to be independent.
Tom Ford and De Sole were very clever when they created their group. From Nicolas to McQueen, including himself, they had all from 10 to 50% shares on their brands.

It’s a pity that McQueen is not their anymore as they can do whatever they wants with the brand now.

Seriously, kudos to her. I hope this will have an impact on her future RTW collections.

Now only if the Dior group would give Galliano his namesake back which they ROBBED off of him.

Unrelated, the but the comments way above crack me up!

I think the Galliano brand has still a lot of licensing deals which makes it impossible for Dior to sell it back now. But considering that now Dior is part of LVMH I really don’t see how they could keep that brand in the group anymore. Eventually it will end-up like Lacroix and i hope that John will be able to buy his brand back or at least on a joint venture with Renzo Rosso.

And yes, the comments are the best part but TFS has never really been too kind with Stella. It’s a pity because she is a lot more talented and honest in her work than a lot of designers today.
Despite being a product of nepotism, she has proven to be a real hard worker.

 

[tjasmine]

Good for her! :cool2: