Burberry Promotes Andy Janowski To Chief Operations Officer – 5/2/10

Breaking news from WWD. Burberry has promoted Andy Janowski to the newly-created post of Chief Operations Officer, reflecting the brand's increased focus on its supply chain.

Burberry said in a statement, “Janowski joined Burberry in 2006 as senior vice president supply chain, and created a global team that transformed purchasing, manufacturing, sourcing, and shipping, resulting in cost savings and reduced environmental impact and distribution processes.”

This is another interesting reshuffle for Burberry. Last November, Burberry’s Creative Director, Christopher Bailey, was promoted to a newly created role of Chief Creative Officer. Read more at the November 13 MO Down.

Valentino’s Sales Increased 10 Percent In The Last 2 Months – 4/2/10

Last year, Valentino SpA scaled back its expansion plans due to its own financial crisis (see the MO Down for December and July for details). But now, all signs point to major improvement and perhaps new store openings.

Valentino Fashion Group’s CEO, Stefano Sassi, said retailing revenue rose at a “double-digit” pace in December and January, and suggested “we can grow more” as a result.

Sassi also said, “I don’t know if we are seeing a light at the end of the tunnel, but for sure the situation is getting better. If the market stabilizes, there will be more opportunity to grow and then more opportunity to invest.”

For more information, click here to go to a Business Week article.

Tod’s Sales Are Still Going Strong – 3/2/10

In the July 31 MO Down, we commented that luxury footwear brand Tod’s were showing “signals of recovery” and were “playing on their strength in shoes.” Now, we’re happy to report that Tod’s is still putting their best foot forward and even reported an increase in 2009 sales, according to Reuters.

Click here for our other report on Tod’s recovery, dated early October.

Richemont Rumoured To Be In Dealings With Rodenstock – 3/2/10

The rumours about Richemont’s interest in Rodenstock, a Munich-based eyeglass-frames maker, seem to be true, if you believe an unconfirmed report by Bloomberg.

We briefly mentioned this rumour in the January 22 MO Down, but now we can reveal Trilantic Capital Partners, the private-equity fund backed by Johann Rupert, Chairman of Richemont, has made an offer to take control of the Rodenstock Group.

There are also claims that Richemont has offered Rodenstock a licensing deal that would permit Rodenstock to make glasses under luxury brands like Chloé and Montblanc. For more detailed information, click here.

High-End French Jewellers Present An United Front At Paris Haute Couture Week – 2/2/10

A new era has definitely begun in haute couture jewellery. Not only has it shared the spotlight alongside the fashion on the catwalk at Paris’ Haute Couture week, but an alliance has been formed amongst France’s most exclusive jewellery brands.

We read about this “joint bid to conquer lucrative markets in emerging nations” in an AFP article. This alliance will feature Van Cleef & Arpels, Cartier, Chaumet, Boucheron, Mellerio dis Mellers, Dior and Chanel. So perhaps it’s a case of sleeping with the enemy to escape from ‘struggle street’ …?

For background information, read the MO Down on November 26: Jewellery To Share The Runway At Paris Haute Couture Week or December 15’s Luxury Jewellery Market Goes From Strength To Strength.

Versace’s Restructuring Plan Has Been Announced – 1/2/10

In the MO Down on October 30, we revealed that Versace was in crisis mode and set to cut 350 jobs. Now, finally, Versace’s restructuring plan has been announced and there are strong hopes that the brand will return to profitability in 2011.

According to WWD and Bloomberg, this restructure will still involve axing 350 jobs. However, Versace plan to launch lower-priced women’s wear called Versace Collection to bolster sales. This new range will be priced at 30 to 40 percent below the signature collection.

For more background information on ‘Versace’s new look,” check out this interesting article in the Wall Street Journal, written by the author of a soon-to-be-published book, House Of Versace.

This article raises some interesting points. We wonder how many times Versace can re-invent itself..? It has had many incarnations already, in its 32-year odd history. Gianni Versace launched the brand in 1978 and it has struggled ever since his death. As the WSJ article put it: "Versace's failure to grow since Mr. Versace's death has left it a minnow, at just a sixth the size of Giorgio Armani SpA, and one-twentieth the size of LVMH's fashion division alone.”

The article also pointed out, “Independent, family-owned fashion companies have come under pressure in the economic downturn. Large multi-brand groups such as LVMH and PPR have weathered the storm better... They have the deep pockets to continue to invest in opulent boutiques, pages of advertising and new product lines even during tough times.”

We’ll keep you posted on Versace’s reinvention and the reaction to its lower-priced range.

Bulgari Fourth Quarter Sales Fall 5.1 Percent – 1/2/10

Despite this bad news, Bulgari’s CEO, Francesco Trapani, said it’s “reasonable to expect that 2010 will be better than the prior year.”

We read in WWD and the Wall Street Journal that the 5.1 percent decline has been blamed on “heavy destocking in the wholesale channel” and ongoing slow sales in Japan (27.3 percent drop) and the U.S (17.3 percent decline). Although US sales improved in November and December.

All product categories registered sales decreases in the quarter, except the core jewellery business. So it’s not all bad news.

Click here for our recent good news on Bulgari’s watch brand alliance.