Forty-five models in Piazza Duomo. The fashion show was held yesterday, July 22, 2020, in Lecce. Presenting Dior Cruise 2021 collection. The French brand has arrived in Italy for the first time, and in a moment of great rise. This is thanks to LVMH’s significant investments.
But also because of its CEO, the Italian Pietro Beccari, choices. Without forgetting the intuitions of its creative directors, Kim Jones and Maria Grazia Chiuri. A rise that, in the light of LVMH’s financial strategy (that is: not to communicate the turnover of individual owned brands), is quantified by Morgan Stanley’s analysts.
The great rise of Dior
Saddle Bag comeback. The success of many other bags. For example: the Lady Dior bag, or the Book Tote. The growing demand for sneakers. Exemplified, the latter, by the incredible hype generated by the reinterpretation (in Italian leather) of the Air Jordan 1.
Starting from these “bases”, Dior has made a decisive upward leap in revenues and profitability. Morgan Stanley analysts estimate it (as reported by Business of Fashion). In other words, sales of the French fashion house increased by 24% in 2019, reaching 6.6 billion euros.
CRV’s smaller damage
In LVMH galaxy, Louis Vuitton has a turnover of around 12.7 billion euros. But while all the luxury, including LV, reports declines due to CRV between 20% and 35%, Dior should have contained the damages. In fact, Morgan Stanley analysts estimate that, in 2020, it shouldn’t lose more than 14%. The brand’s profitability has also increased steadily in recent years.
EBIT margin went from 12.3% in 2017 to 18.4% in 2019. “The brand has acquired the status of luxury mega–brand”, commented Stanley Edouard Aubin and Elena Mariani of Morgan Stanley. This allowed it “to benefit from a virtuous circle of investments and growth above the sector average”.
A gift to Puglia
On Tuesday, within this virtuous circle, Maria Grazia Chiuri gave a gift to her native land: Puglia. Originally from Tricase (Lecce), Chiuri not only organised the fashion show (behind closed doors, apart from staff and professionals) in Lecce. She also paid homage to Apulian art and craftsmanship. The collection, Fashion Network recalls, has been presented live yesterday, July 22, 2020, starting at 8.45PM on Dior website and social media channels. The products will be in boutiques next Christmas.
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