Weekly News Brief
BEST FOOT FORWARD
Despite announcements earlier this year that they would be closing more than 100 stores, Michael Kors broke the internet this week with its plans to snap up luxe footwear and accessories brand Jimmy Choo for a whopping $1.2B. This continues 2017's theme of mergers and acquisitions. (Remember when Coach's purchase of Kate Spade made big headlines earlier this year?) What has also raised some eyebrows is the purchase price: a 36.5% premium over Choo's market valuation. Glossy discusses the acquisition's opportunities and raises questions about what it all means for the Michael Kors brand.
American luxury houses have historically struggled to achieve the same levels of global success relative to their European counterparts, and The New York Times explores what the ongoing consolidation of power means for luxury retail going forward.
NOT GOING TO BAT
The retail industry (understandly so) freaked out in a major way with the Trump administration's plans to enact a Border Adjusted Tax (BAT), which would have increased taxes on imports by 20%, in hopes of incentivizing more domestic production and purchase of goods. The NRF estimated that its passage would have increased the burden on US households by at least $1,700 per year, and killing this legislation had been the focus of major retail lobbying over the past few months. But on Thursday, spokepersons for the White House said, 'J/K BAT's not happening.'
We'd guess that with this announcement, there was some major bubbly getting popped in retailers' C-Suites around the country.
LIKE WE COULD FORGET ABOUT AMAZON
Getting too big or predatory? With Amazon's non-step pace of new product and service introductions, many (especially those in their competitive space on the receiving end of a tumble in market valuation) are starting to question whether it will eventually need to be broken up. This week, L2's Scott Galloway discussed on Bloomberg TV whether its size is a good thing.
And what was Amazon up to this week? Launching Prime Now in Singapore and private label handbags and shoes. What did you do this week?
A TROUBLED HOUSE
It's been quite some time since the heydey of one of fashion's most well-known brand names, Marc Jacobs, and there are many questions about its future outlook. Earlier in the year, its CEO Sebastian Suhl stepped down, and it was widely known that Jacobs, who is still actively involved and guiding the day-to-day design functions of the brand, was not pleased with the changes Suhl was making. But with the announcement that former Kenzo CEO Eric Marechalle will be taking the reins of the company, there are whispers that Marc Jacobs may leave the brand entirely or step down from his role, letting someone else manage its creative direction. Undoubtedly, there will be some difficult decisions ahead, but hopefully those on both sides of the table will do what is in the best long-term interest of the brand.
☀️ THIS WEEK'S BRIGHT SPOT ☀️
Plus-size fashion gets more options this week, with the launch of bloggers Nicolette Mason and Gabi Gregg's new line Premme. It's already selling out, and we're pretty sure these two are onto something really special. Congrats, ladies!
And the plus opportunity isn't just for women; its men's counterpart has long been overlooked. Esquire talks about this fashion miss and how new designers are stepping up the plate with some much-needed (and on-trend) menswear. Time to make some room in your closets!