Fashion News Alert: Kering May Acquire Tom Ford, Nicola Formichetti’s New Gig, and Victoria Secret Acquires Adore Me

Image courtesy of mgmghuru.in

French luxury holding company Kering is in talks for the acquisition of US luxury brand, Tom Ford. As reported in the Wall Street Journal earlier this summer, the frontrunner in the acquisition of Tom Ford was cosmetic and fragrance giant, Estée Lauder. However, disappointing quarterly reports, published on September 30, showed that Estée Lauder had an 11% decline in sales, with a net profit decrease of $103 million dollars. This decline takes Estée Lauder out of its lead pony, so to speak, acquisition position.

That said, Kering is experiencing a financial boom of sorts. Across its brands Balenciaga, Gucci, and Saint Laurent, Kering is delighting in a higher-than-expected sales increase, supported partly by US tourists who are spending heavily in Paris and other European cities.

With a market value of almost 60 billion euros, the acquisition of Tom Ford would not make much of a dent in Kering’s heavily stuffed monkey bags. Estée Lauder was hoping to ink a deal with Tom Ford that could have been worth $3 billion or more, making Tom Ford the biggest acquisition by an American cosmetic giant.

Tom Ford founded his eponymous brand in 2005. The brand initially specialized in menswear, but now includes women’s ready-to-wear, accessories, and cosmetics. With Kering’s expertise in global high-end luxury and accessories, the Kering acquisition could be a match made in heaven for Tom Ford.

Image courtesy of fashonista.com

A new job for Formichetti, kinda

Surprise, surprise, surprise. Nicola Formichetti has a new gig, and you would’ve never guessed this one!!

The designer, stylist, and fashion personality will be the new creative director of youth brand, Claire’s. For those not familiar with Claire’s, Claire’s is an Illinois-based tween and teen girl retailer of accessories, toys, and jewelry.

Formichetti has several upcoming projects in the works. First, he will produce five videos that give fashion trend tips and insights, set to roll out by November 14. Next, Formichetti will collaborate with V magazine on Claire’s first-ever issue, featuring op eds by Jaden Smith, Maddie Ziegler, Dixie D’Amelio, and others. And lastly, Formichetti will open a Paris store with a futuristic feel, conceptualized by Formichetti.

Seems like Nicola has a lot on his plate. Good Luck!!

Image courtesy of nytimes.com

Victoria’s Secret and Adore Me, compatible bedfellows

Victoria’s Secret is bouncing back into prominence by repositioning itself as a brand that has just as much online traction as brick-and-mortar traction. Known mostly for its global stores and extravagant runway shows, Victoria’s Secret experienced a major downturn in the market in recent years, particularly during the COVID-19 pandemic.

On Tuesday, it was announced that the lingerie giant would be purchasing digitally native intimates brand Adore Me. “Adore Me is a technology-led, digital-first innovator in the intimates category that will help us bring differentiated experiences to Victoria’s Secret and Pink customers,” said Martin Waters, CEO, Victoria’s Secret & Co., as reported in fashionnetwork.com.

“This acquisition will be a significant accelerant as we pivot toward growth and modernize the foundation of our company with an entrepreneurial mindset that puts technology at the forefront of everything we do. In partnering with the incredible team at Adore Me, we will move to the future much faster.” 

The acquisition will include an initial upfront $400 million cash payment and further cash consideration, a portion of which is fixed and a portion of which is based on the performance of Adore Me and achievement of specified growth and synergy targets over a two-year period. This Adore Me acquisition comes on the heels of Victoria’s Secret acquiring a minority stake in the US swimwear brand, Frankies Bikinis.

Adore Me was founded in New York City in 2011. This online-only intimates brand boosts 1.2 million active customers.

William S. Gooch

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