Welcome to this week’s edition of 2Jour Gazette—your curated look at what’s been making waves in fashion and luxury.
This edition may not have happened. Either I'm in the 'tired-of-fashion-mode,' which happens from time to time with the things you love, or the industry has entered its general quiet period (which is December and August). But I can never skip updates in e-commerce, and Mytheresa released its financial report last week. While the luxury retailer reported significant sales growth, I found the metrics hidden behind words like 'significant' and 'positive' somewhat questionable. It’s like in life – don’t trust the words, look at the actions.
Another interesting piece of news in the luxury world came from none other than Kering. Now, the top manager of Balenciaga will become the top manager of Saint Laurent, only to return to... yes, Balenciaga. Oh, the corporate fashion world, it really does resemble a private members' club with an almost unattainable entry threshold, so the musical chairs game continues. The question is how successful this strategy of role swapping between orchestra members will be. This, along with other few events from last week – in this edition.
So, grab your favorite espresso (or perhaps a glass of champagne), settle in, and let’s explore the chic, the influential, and the simply fascinating moments from the past week.
x Marina 2Jour
Milan Tops New York as World's Priciest Shopping Street
Milan's Via Montenapoleone has now become the most expensive shopping street in the world, surpassing New York's Upper Fifth Avenue. Rents on the Milan street have reached €20,000 per square meter annually, marking an 11% increase compared to last year.
Several factors have contributed to this rise:
Tax incentives: Italy has implemented favorable tax breaks to attract international businesses, making Milan an attractive location for luxury retail;
Strategic marketing: Efforts to position Milan as a global fashion capital have successfully brought in high-end retailers;
Brexit effects: Following Brexit, many businesses and wealthy individuals have moved to Milan, further bolstering its luxury market. This year, the trend took a new turn with the latest UK government initiatives on wealth taxation. If you’d like to learn more about this, there have been several noteworthy articles in the Financial Times over the past few months.
This milestone is celebrated by local business groups, who see it as a win for Milan's growing status in the global luxury market. However, there are concerns about the increased cost of living and the potential displacement of middle-class families.
The rise in retail rents has led to intensified competition for store space on Via Montenapoleone. Visitor numbers are rising, especially among international shoppers who benefit from VAT refund schemes.
Despite its successes, the area has been plagued with challenges such as soaring rents, heavy traffic, and a rise in pickpocketing, which has affected its overall reputation.
Read more in Financial Times and The Times.
Luxury Resale Market Hits $138 Billion in China
Economic pressures and changing consumer behavior in China have led to a significant shift in the luxury market, with more consumers turning to second-hand luxury goods. Platforms like ZZER and Xianyu have seen considerable growth as a result. In 2020, the luxury resale market in China reached over Rmb1 trillion ($138 billion), reflecting a broader trend toward more sustainable and cost-effective luxury consumption.
This shift is also being driven by younger generations seeking to own high-end brands at more accessible price points, alongside growing concerns about environmental impact. The rise in second-hand luxury has created new opportunities for businesses in the resale market, further reshaping the landscape of luxury retail in China.
Read more here.
PROFIT WATCH: TRACKING FINANCIAL WINS AND LOSSES
Mytheresa Sees 8% Net Sales Growth in Q1 FY25, But Is the Cost of Growth Too High?
19 Nov 2024. Mytheresa, the luxury multi-brand digital platform, has announced financial results for its first quarter of fiscal year 2025, ending September 30, 2024. The company reported a notable 7.6% increase in net sales to €201.7 million, compared to €187.5 million in Q1 FY24. This growth was driven by a record-high Average Order Value (AOV), which surged by 9% to €720 over the last twelve months (LTM). Additionally, Gross Merchandise Value (GMV) grew by 6.3% to €216.6 million.
However, while the company's presentation is focused on GMV growth, let's take a look at what we have in the final tally: €5.4 million in net profit for Q1 FY25, representing a remarkable +265.4% year-over-year growth.
Marketing expenses as a % of GMV stood at 10.6%, or €22.95 million, with a shift towards Top Customer activities. Considering this, can the results be considered extremely positive? I find it difficult to say. To me, this reflects the overall luxury slowdown and, perhaps, the high cost that the platform is paying to boost GMV from top customers.
Key Highlights:
US Market Performance: Mytheresa saw double-digit growth in the US market, with a +14% increase in sales and a further expansion of its US market share, now representing 20% of total net sales
Improved Profitability: The company achieved a 150 basis points increase in gross margin, rising to 43.9%, and reported a 200 basis points improvement in adjusted EBITDA margin, reaching 1.4%, up from -0.6% in Q1 FY24
Customer Economics: 16.7% increase in GMV per top customers
Inventory and Cost Management: Inventory decreased by 3.6% year-over-year to €365 million
CEO Michael Kliger expressed his satisfaction with the company’s performance, especially given current market uncertainties. He highlighted Mytheresa’s continued profitable growth, its strong position within a consolidating luxury sector, and its ability to generate exceptional customer loyalty and satisfaction.
Strategic Developments:
Exclusive collaborations: Mytheresa launched exclusive capsule collections with top brands like Chloé, Bottega Veneta, Saint Laurent, and Gucci, alongside hosting highly impactful top customer events globally
Expansion into China: The company introduced its Chinese brand name, 美遴世 (Mei Lin Shi), and launched the Mytheresa WeChat Mini Program, further enhancing its digital presence in China
ESG Commitment: Mytheresa also released its third Environment, Social, and Governance (ESG) report, detailing progress toward its ESG goals
Looking ahead: For the full fiscal year 2025, Mytheresa expects GMV and net sales growth in the range of 7% to 13%, with adjusted EBITDA margins forecasted between 3% and 5%.
Acquisition of YOOX Net-A-Porter (YNAP): On October 7, 2024, Mytheresa announced the acquisition of YOOX Net-A-Porter (YNAP) from Richemont. This deal, expected to close in the first half of 2025, will create a leading global digital luxury group. The acquisition includes a cash position of €555 million, no financial debt, and a strategic partnership where Richemont will hold 33% of Mytheresa’s fully diluted share capital. Read more details in my review here.
My personal highlights:
The US remains the top market for luxury;
Brands and companies are shifting attention to price-insensitive top spenders;
Marketing remains key (as per most of the financial reports I reviewed, marketing expenses account for around 10% of sales value);
Both the focus on top-spender activities and marketing expenses are more about short-term results. Once stopped, the customer is lost. As someone who frequently checks Mytheresa, I would love to see better content, as it’s a core value in fashion e-commerce. But it has been the same for ages.
The funniest: Don’t read the words, check the numbers. The first may be misleading:)
The following week, the share price grew by 12.00%. In 2024, the growth is +115.38%, mainly driven by a price jump in September following the YOOX NAP acquisition announcement.
Mytheresa press-release and presentation on results.
THE JOB SHIFT JOURNAL: HIRES, FIRES & TRANSITIONS
Kering's CEO Switch: A Fresh Start or Just Musical Chairs?
18 Nov 2024. Kering has announced the appointment of Cédric Charbit as CEO of Saint Laurent and Gianfranco Gianangeli as CEO of Balenciaga, effective January 2, 2025. Both will report directly to Francesca Bellettini, Kering’s Deputy CEO in charge of Brand Development, who will now focus entirely on the development of Kering's Fashion, Leather Goods, and Jewelry Houses.
Cédric Charbit, who has been with Kering since 2012 and served as CEO of Balenciaga since 2016, will take over Saint Laurent, where he will leverage his expertise to drive growth and reinforce the brand’s identity. Gianfranco Gianangeli, previously Chief Commercial Officer of Saint Laurent and with experience at brands like Maison Margiela and Bottega Veneta, will succeed Charbit at Balenciaga. His mission will be to continue expanding the brand’s reach and reputation.
It’s hard to mix them up – the pieces on the chessboard have simply been swapped :)
Francesca Bellettini expressed confidence in both leaders, stating that their extensive experience and leadership make them the ideal choices for their new roles. François-Henri Pinault, Chairman & CEO of Kering, highlighted that these leadership changes strengthen the company’s structure and position it for future growth amid industry challenges.
But with these changes, one might ask: Is this just another case of 'rearranging the addends' without affecting the outcome? Kering's move and the recent LVMH reshuffle make it seem like either the luxury fashion business is a private club with a high entry level, or that the bench of substitutes is too short.
Read the full press-release here.
THE BUZZ: Marketing & Collab Chronicles
Loro Piana Marks 100 Years with 'Master of Fibres' Book Release by Assouline
Loro Piana has released "Master of Fibres," a book commemorating its 100th anniversary. Published by Assouline and authored by historian Nicholas Foulkes, the 196-page volume explores the brand's evolution from a wool trading company to a global luxury entity.
The book is part of Assouline’s Ultimate Collection, bound using traditional techniques and housed in a luxury clamshell case covered with Loro Piana's Tela Sergio fabric—a cotton and linen blend. It features 150 illustrations, including interviews with family members and archival documents.
"Master of Fibres" is available for purchase on Assouline's and Loro Piana's websites and in select Loro Piana boutiques worldwide. This release offers insight into Loro Piana's century-long legacy and its commitment to Italian craftsmanship.
The text was a missing piece for me in the Harrods experience, which I briefly mentioned in last week's edition (stay tuned, my broader thoughts may be out any time soon x).
And while you probably know Loro Piana’s background, here are a few interesting facts about Assouline and its policies, which I read just this week and found interesting enough to share:
Founded in 1994 by Prosper and Martine Assouline, and celebrating its 30th anniversary this year;
Expanding its product offerings: In 2023, Assouline released candles inspired by their best-selling Travel Series. In 2024, they updated the range with three more releases (home fragrances and diffusers are also in the works), as well as library accessories (including bookstands and bookends);
Family first: While LVMH acquired a minority stake in Assouline Publishing in 2013, supporting the company’s international expansion, the main business remains in the hands of the Assouline family, with many family members heavily involved;
Pop-ups: This year, the brand hosted a pop-up in Sardinia. Additionally, Assouline has been selected to design the traditional 2024 Holiday Surfboard Tree at The Royal Poinciana Plaza in Palm Beach;
Shops & Corners: Assouline is planning to open 10 new stores over the next three years (for example, a new location on Madison Avenue, which will feature a bar offering baked goods, coffee, and juices) and expand into +12 corners in department stores, adding to the 25 existing locations;
Library design: Assouline offers curated library design services, providing clients with bespoke solutions to create luxurious and personalized home libraries. These services include selecting appropriate furnishings, accessories, and book collections.
THE LOUNGE: Campaigns, Lookbooks, Edits
Need a Festive Mood? Brunello Cucinelli Is Here for You
Brunello Cucinelli opens the doors of its Hotel, surrounded by snow and the pre-holiday hustle. A light story with unique guests dressed head to toe in the brand's creations. And a happy ending – a must for every kind of fairytale.
I truly enjoyed watching this 3-minute video for Holiday ad campaign.
Stay tuned for the next week edition x