Fighting CRV by investing. Onward Luxury Group expect revenues to decrease by 15% throughout 2020. The strategy of the group (which controls a few brands, such as Jil Sander and Joseph, and manages JW Anderson, See by Chloé and Proenza Schouler licenses) aims at increasing the portfolio licenses. The latest one they have very recently acquired is Elie Saab. Moreover, they are planning to carry out two footwear projects and some more initiatives related to apparel. On top of that, their investment plan will also concern digital and physical retail sales.
Investing to hold out against CRV
According to Fabio Ducci, Chief Executive Officer of OLG – Onward Luxury Group, spring 2021 wholesale orders will expectedly drop by 20 to 25%. “Speaking my mind, I am quite happy about our sale campaign achievements. I actually had more pessimistic expectations”, he claimed while speaking to WWD. “According to our estimates, 2020 overall earnings will be decreasing by 15% compared to 2019”, continued the manager: in his opinion, such downturn mostly depends on missed deliveries of goods, in spring 2020, but is also due to the cancellation of several fall-winter 2020-2021 orders. Ducci has also announced that OLG will manage two new licenses in the footwear segment, with regard to winter 2021-2022 collections. Meanwhile, some negotiations are currently underway, in the prêt-à-porter business: they are about “more than a license”.
In the meantime, OLG announced a new entry in the group’s portfolio: Elie Saab, a luxury brand. The contract agreement, which will last 5 years, will commence in summer 2021. OLG will produce and distribute shoes and leather goods created by the Lebanese fashion brand. Furthermore, the group is also planning an additional investment, which will concern digital and physical retail sales. Next week OLG is going to launch the Blancah platform. In other words, an e-commerce portal that the company itself is going to manage in-house, while looking for two new locations for their New York and London shops. The opening of the stores is due to take place in the first quarter of next year.
- Onward Luxury Group to change top management, as Franco Penè quits, after 24 years. Takehiro Shiraishi takes over as new CEO