Daily LInks
1. How private equity is gutting retail: In the bankruptcies of J. Crew, Neiman Marcus, and many others, it wasn’t just bad business practices and the rise of e-commerce that did them in, it was a direct result of the perils of leveraged buyouts – the acquisition of a company using a significant amount of borrowed money. – See More on CNN
2. Online fashion stocks in vogue as coronavirus speeds ecommerce: “The sudden closure of all apparel retail stores across all major global markets has shaken up the channel mix in an unprecedented way this year,” said Bernstein’s Aneesha Sherman. “It’s five years’ worth of growth achieved in about six months.” – Read More on Reuters
3. In the Fashion Industry, Black Activists Push For Deeper Change: The industry has long capitalized on black culture. Fashion magazines now frequently put black stars on their covers while brands call on them to boost their cool factor. Yet there are still few black professionals in top industry roles. – Read More on WSJ
4. Fashion Redesigned Itself in Lockdown: Fashion executives have spent the lockdown figuring out how to sell their products online. Coach, Kate Spade and Stuart Weitzman’s parent company Tapestry canceled $500 million of orders for handbags, jackets and dresses, saving cash to weather both the shutdown and what’s likely to be a slow recovery, while Farfetch has seen sales skyrocket — by 90% last quarter. – Read More on Bloomberg
5. RETRO READ: From Hermès and Chanel to Louis Vuitton and Gucci, What Will Fashion’s Impending Shift Actually Look Like? it is unclear what the tangible outcomes will be. Nonetheless, two potential outcomes within the luxury and high fashion space seem likely: one will see brands contract, to some extent, in terms of the breadth of their offerings, while moving further upscale in order to maintain their positions as luxury brands and simplifying their business model in order to meet heightened consumer demands for a more sustainable future. The other will see brands embrace a more modern notion of contemporary luxury by going increasingly more digital. – Read More on TFL
