Oakley’s Post

While many Americans are struggling to buy groceries and gasoline, multinational fashion giant Kering - the parent company of Gucci, Balenciaga, and Yves Saint Laurent - had $2 billion in free cash flow from operations last year, and is on a real estate spending spree. It recently paid $1.4 billion or $1766 per square foot for a retail property on the prestigious Via Montenapoleone, the Rodeo Drive of Milan. The seller was genius US REIT Blackstone. It paid $1.2 billion in 2021 for a 14 property portfolio of which the Via Montenapoleone property was only one. So the other 13 properties were free. The price represents a 2.5% cap rate. This follows the purchase this year of 715-717 Fifth Avenue in NYC for $963 million, or $2000 per square foot. #retail #commercialrealestate #blackstone

This is wild to us: #Luxury #retailers like Chanel and Gucci are aggressively expanding their US real estate footprint, emphasizing in-person #shopping due to robust #post-pandemic sales and wealthy consumers' preference for physical stores. While Rodeo Drive and Michigan Ave are usually home to these types of brands....they're now venturing into booming cities and regions such as Austin, Nashville, and Florida.

There’s a reason you never see Gucci or Armani on sale. These brands don’t believe in liquidating their luxury goods, so they’ll either sit on it or destroy it.  Different businesses have a variety of ways to deal with inventory problems and depends on the size of your business and the amount of inventory. Here are your options: Returning the product Reselling the product Recycling the product Wasting the product It’s always interesting to ponder what retailers do with their excess inventory considering the large volumes and different scenarios they face with each product.  #InventoryManagement #SupplyChainChallenges #InventoryIssues https://buff.ly/495oNcN

Miu Miu's Global Sales were up 58% in 2023. WHY??? Here's what i took : 📍 Expanding consumer profile: ↪ Miu Miu overturned its positioning as a younger sibling brand in recent years. ↪ With a new product line that is not only ageless but increasingly genderless. ↪ Miu Miu has focused on attracting those with a "youthful attitude" ↪ Which means not just aging millennials but anyone who embodies that mindset. 📍Styling revamp of products: ↪ Miu Miu's micro-mini skirt, introduced in the SS 2022 collection. ↪ Generated media frenzy far beyond what the brand's current marketing budget could afford. 📍Return of tourists: ↪ According to Prada executives, Chinese and American tourists are returning to the region. ↪ Milan's flagship stores for Miu Miu is crowded with shoppers from the US and China, as well as from Italy and Russia. #branding #marketing #strategy

Prada recently sealed an $835 million deal for a prime spot on 5th Ave in NYC. Not to be outdone, Gucci’s owner paid $963 million off 5th Ave in NYC. Why are these major players in the retail industry pouring massive sums into shopping locations, especially during a time of retail real estate decline? Real estate is perceived as a valuable asset and a secure haven for capital investment. That is especially true where, as here, the companies are buying property in the most important retail street in the world. These transactions serve as prime examples of how strategically positioned assets consistently attract significant interest from global investors, demonstrating the enduring demand across economic cycles. (Sources: NY Post & The Real Deal) #commericalrealestate #newyorkpost #therealdeal #prada #gucci #crecareers

Jimmy Choo and Michael Kors suffer major declines in Asia as Versace faces a massive loss in EMEA Asia and EMEA have seen double digit declines for Michael Kors and Jimmy Choo due to reduced luxury demand, economic uncertainties, and shifting consumer preferences, impacting both sales and revenue in these regions. CEO John D. Idol expressed disappointment with Capri Holdings Limited Q1 results, citing a global slowdown in luxury goods demand. Despite challenges, Versace, Jimmy Choo, and Michael Kors attracted 12.6 million new consumers, reflecting strong brand equity. Capri is actively defending its planned acquisition by Tapestry against an FTC lawsuit, believing the merger will enhance shareholder value and offer new opportunities for employees, while strengthening global reach and preserving brand identity. For Q1 Fiscal 2025, Capri Holdings reported $1.07 billion in revenue, down 13.2% YoY. Gross profit was $689 million, and the operating margin was -0.7%. The net loss was $14 million, and cash flow from operations was $83 million. Net inventory decreased by 23%. ·  Versace: Revenue fell 15.4% to $219 million due to declining global demand, with EMEA (-22%), Americas ( -15%), and Asia (-3%). ·  Jimmy Choo: Revenue decreased 5.5% to $173 million, significantly impacted by a 17% decline in Asia. ·  Michael Kors: Revenue dropped 14.2% to $675 million, with declines in the Americas of 10%, EMEA 21%, and Asia 23%. Despite revenue declines, Capri Holdings is optimistic, believing its Tapestry acquisition will enhance shareholder value and global growth. #jimmychoo #michaelkors #versace #tapestry #capriholdings #marketing #innovation #luxury https://lnkd.in/eZZBd4MS

We’re excited to launch our new 𝐓𝐞𝐫𝐦 𝐨𝐟 𝐭𝐡𝐞 𝐃𝐚𝐲 series where we break down important terms from various industries, making complex concepts easy to understand. Each day, we’ll dive into a new term and explain its meaning and how it impacts the industry. Today’s term is 𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐏𝐫𝐢𝐜𝐢𝐧𝐠. This approach is commonly used in luxury goods and high-end services to create a perception of higher value and exclusivity. Find out how big brands like Gucci and Prada set their prices, check out our detailed research article on premium pricing here: https://lnkd.in/dF7dHbw4 Stay tuned for more insights! #TermOfTheDay #PremiumPricing #PricingStrategy #SciativeSolutions

THE RENAISSANCE OF PHYSICAL RETAIL: LUXURY BRANDS SPLURGE ON US REAL ESTATE #luxury #fashion #retail #stores #experience #strategy #marketing #US #Gucci #Chanel https://lnkd.in/eYT2bvwQ

Diving deep into Burberry's SS24 collection under Daniel Lee: a retail strategy in question. Does Burberry's latest approach resonate with the emotional depth and innovative vision the brand historically achieved? My review unpacks the essence of Burberry's identity crisis and its pivot under Lee's direction. For an insightful look into how Burberry navigates the saturated market and its attempt to forge a deeper connection with its audience, follow the link below for the full review on i see windows. #BurberrySS24 #RetailStrategy #BrandStrategy https://lnkd.in/dxJMjRHJ

Kering readies its big brands to do battle on Fifth Avenue A whopping 963 million dollars… Such was the total at play in a major real estate transaction recently finalised between Kering, retail giant SL Green and New York property tycoon Jeff Sutton. Situated at 715-717 Fifth Avenue, the space's strategic value cannot be understated. 🤼 As it is, the location is in a relatively competition-free neighbourhood. Indeed, though Giorgio Armani is currently just next door to the new acquisition—on the corner of Fifth Avenue and 56th Street—it is set to move further up Madison Avenue: good news for the Kering brand that will fill the new space. This stands in stark contrast to Gucci's location at 725 Fifth Avenue, for example, which became less desirable when Prada moved in across the street, at numbers 724 and 720. ❔In its drive to reconquer the US market, Kering has an array of choices of strategic brands to allocate the much sought-after location: BALENCIAGA, Gucci, Saint Laurent, Bottega Veneta, Alexander McQueen… Yet as of now, the jury is still out as to which brand it will be. 📈After 2023—a year in which LVMH monopolised much of New York's Fifth Avenue—Kering now looks to be on the up and up. Yet it must first complete significant renovations on the space to prepare it for whichever fortunate brand is chosen to fill the highly-strategic location. To learn more about this strategic real estate acquisition, read our free investigative article: https://lnkd.in/eyxs2vtn