Burberry released a trading update yesterday. sales were up 17% for the first six months of trading to 30th september 2010. There were a couple of interesting points made, but here is my little analysis as a consumer :

growth in china

China cropped up time and again in their financials press release. although there wasn’t any geographical breakdown, it was reported that 30% of europe’s sales were from chinese customers. This doesn’t come at a surprise since much of eurozone’s currency had really gone down the toilet this year, making it much more cheaper and attractive for tourists from the far east to come visit and spend.

Other notable news include the buy back of 50 stores in china. This would give them more control over this fast growing market. How significant? As at 30th september, burberry owns 164 retail stores, and 30% of the stores are in china.

China is obviously a very significant and growing market for burberry. But we have yet to see an obvious design shift to deliberately appease/appeal to the chinese audience. no cheongsums, no pandas tigers or dragons in sight yet. They seem to be doing their thing, and leaving the arduous task to the marketing teams, to make the collections relevant and appealing to chinese market. And for the record, i like that.

Future Beauty: 30 Years of Japanese Fashion is the first exhibition in Europe to comprehensively survey avant-garde Japanese fashion, from the early 1980s to the present. Curated by the eminent Japanese fashion historian Akiko Fukai, Director of the Kyoto Costume Institute, the exhibition explores the unique sensibility of Japanese design, and its sense of beauty embodied in clothing.

In the late 20th century designers such as Issey Miyake, Rei Kawakubo and Yohji Yamamoto redefined the very basis of fashion. Their works will be shown alongside Kawakubo’s protégé, the techno-couturiere Junya Watanabe, together with the acclaimed Jun Takahashi, and the new generation of radical designers including Tao Kurihara, Fumito Ganryu, Matohu, Akira Naka and Mintdesigns.

Future Beauty is the first of of a series of events to be held at Barbican this Autumn that explore the unique culture of Japan.

Future Beauty: 30 Years of Japanese Fashion
15 October 2010 – 6 February 2011
Link: Barbican Art Gallery

‘Masquerade’ is the theme for Vogue Paris 90th Anniversary celebration and the spread ‘Bal Masqué’ in the October issue is an ideal inspiration for guests who turned up for the magazine’s celebration night in Paris on Thursday.

Models Karmen Pedaru, Dree Hemingway, Anja Rubik, Shannan Click and Frida Gustavsson each showed off the right make-up, dressing and accessories to go with the theme, photography by Josh Olins and Sharif Hamza and styling by Mélanie Huynh, Géraldine Saglio.

Prada disputed the reports, saying that the family still owns about 95% of the company, while the remaining 5% by italian bank banca intesa San Paolo. Interestingly, prada then announced a day later, that they agreed terms for a new €360m loan from a consortium of banks, in part to service an old loan while also to finance new store openings.

For most years, prada has been profitable. with collections that are loved by critics and consumers (not an easy feat to achieve acclaimed reviews and commercial success), it is not entirely a huge surprise. For the first quarter of 2010, prada reported sales of €366m, a 26% increase as compared to the same period in 2009. Earnings were up 480% from €11m to €60m. despite the stellar results in recent years, prada’s finances have always been a huge woe. In particular the huge debt that they are carrying. back in january, the debt stood at about €1.3 billion.

An astonishing amount of debt, for what is largely a privately owned company.

Eversince the financial bloodbaths of the investment banks, regulators and investors are not just interested about the sales and profits made (profit and loss statements), but also the resources used to achieve the sales (balance sheets). As prada is a privately owned company, financial data are not widely available. But it was suggested that the company was in debt as far back as 1998, which doesn’t really surprise me either since most companies would choose between debt or equity (shares issue), and for a company wishing to stay independent and private, prada chose to take on loans and debts.

Reading into the history of prada, i found it interesting that they actually acquired about 9.5% of shares in gucci back in 1998. With gucci being at the centre of a takeover war, prada sold their shareholdings to LVMH for a nice tidy profit. With prada’s debts, it was apparent that they were unable to mount a successful takeover of gucci, hence the sale of shares. however gucci resisted the further takeover attempts by LVMH, and sold the majority of their shareholdings to francois pinault, which now forms the crown jewel of the PPR empire.

The cordial relationship between Prada and LVMH post gucci shares sale continued into 1999. together, they bought 51% shareholdings in italian luxury house fendi for US$520m. However under pressure from their bankers to pay off the huge debts, in 2001 prada then sold their share in fendi to LVMH.

Besides the investment in gucci and fendi in the 90s, the more prominent investments from prada were the acquisitions of helmut lang and jil sander in 1999, which saw prada paying about US$100m each for the two companies. The move created a huge outcry, with many accusing lang and sander to be a sell-out to the more commercially driven prada. With the commercial acumen of patrizio bertelli at prada and the creative teams at lang and sander, the new structure should really work. But mergers and acquisitions often doesn’t take into account of human emotions. and we all knew lang and sander both walked out of their namesake companies.

It was again reported that under pressure from bankers to finance their loans, bertelli needed a quick turnaround for helmut lang and jil sander, hence the more commercial approach and introduction of logo emblazoned accessories from helmut lang not long after the prada takeover. Presumably under pressure to finance their loans, prada then sold their investment in helmut lang to current owners link theory, and jil sander to a private equity firm.

And it is interesting to see prada growing the company through acquisitions in the 90s, whereas other similar private companies the likes of armani and versace developed diffusion lines to grow organically.

The strategy of growing by acquisitions in the 90s seemed to have changed. Prada is now concentrating their efforts on growing prada mainline as well as diffusion line miu miu. there were earlier reports that prada needed to raise cash fast in order to service their loans. Is that the reason why we are seeing more lower priced and entry-level products, like the printed cotton bags above?

Is the need to desperately pay off loans the reason why we are seeing much more lower priced bags from prada mainline. I always maintain my view, that what we see in shops is not really a direct result of what is cutting edge or fashionable, but a byproduct of commercial decisions. Of course, prada sold the above bags alongside other expensive and exquisite creations, treading along what miuccia wants (high fashion) and what bertelli needs (erm, cash).

Very clever.

Prada could have concentrated on what they have on their plates at the moment and work towards paying off the huge loan. but they see china as a huge opportunity, a reason why they took on an additional €360m loan last week. Whis will allow them to finance the opening of new stores in china, which many agreed will be the biggest consumers of luxury products.

I personally think prada will do very well in the chinese market. if i can be crude and honest (that’s the difference between blogs and magazines, no?), the first generation of the new found wealth affluent chinese consumers are big on logos and the carrie bradshaw culture: “i want my money where i (and others) can see them.” i could be generalising and typecasting, but no offense intended. different cuts, different strokes. Prada, with the clever use of their triangular logo on their accessories, and miu miu with their logos etched on almost every of their bags, will certainly do very well in that market.

And prada knew. They collaborated with chinese artist yang fudong on a mini movie/campaign called “first spring” which was shot entirely in china. It is my favourite prada campaign to date, and one that fuses chinese heritage and cultures so well without appearing to be patronising like many of the other fashion houses out there.

We know accessories is the most profitable part of the luxury retail business. penetrating the new market will be vital to them staying afloat. and talking of float, the many talks of prada floating on the stock exchange could be soon. Markets are on the up, the successful float of the business would help repay prada’s loans and ease the financial pressures. That would mean relinquishing some of their 95% shareholding, but also an exit plan for bertelli and miuccia who are in their 60s.

So what is my point?

None really.

I just find it fascinating that prada is in so much debt. Profitable with sales but achieved through massive financing and borrowings. Perhaps we should really pay more attention to the resources used to generate the sales, at what sacrifice. But who am i to say their business model is flawed. For a family who wanted to keep the company private, control comes at a price.

It was reported that the company could be worth between €3 to €4 billion if it floats on the stock exchange. Not bad for a family run business huh? The feeling is perhaps not mutual now, but they will have the last laugh.

And oh, my point is i really really like the coat above, which i think is moleskin cotton with wool double layered collars. after all the ditterings above, i decided that will be my winter investment coat this year. The buyer for the london stores better pick that piece or else words will be had. that will be my little effort to help prada pay off the loans. You’re welcome, don’t mention it.

LABB has been created to harvest and showcase emerging, often unheard of, talent in the fields of Fashion, Art and Photography. Each edition brings something and someone new to the reader and the second issue creates a platform for the work of new photographers, designers and models from Japan, Denmark, USA, Finland, Netherlands, Spain, Italy, India, Australia, Greece & UK.

LABB is more than a magazine – there are three elements to the brand – LABB Book, the international, glossy, coffee table magazine which is printed quarterly; LABB Loves, the blog dedicated to all things fashion, art and photography; and LABB Emerge, exciting events that showcase the creatives it discovers.

The LABB audience is the ‘boutique creative’ – an individual who is not content in seeing just the same well-known, high end names – the LABB reader wants to explore and get a little glimpse into something different. The Labb reader wants to discover and be the first to tell you all about it.

The vision for LABB is very simple, to be the Discovery Book. Generally the independent grass root, new talent magazine is small and pale in comparison to the others on the shelves, LABB wants to change that. They will bring fresh content in a format that is understood and respected, with a solid 400 plus page book each quarter. The LABB aim is to make sure people take note of what else the industry has to offer.

LABB MAGAZINE: The Collaborative Laboratory

“CREATIVITY IS A SCIENCE, YOU ALWAYS WANT TO PUSH THE LIMITS, FIND SOMETHING NEW, BUT IT’S ALWAYS BASED ON THE EXISTING. NOT EVERYONE WHO WORKS IN A LAB WEARS A WHITE JACKET…”

“WELCOME TO OUR LABB!”

Issue 1, Volume 2 will be available from 19th July 2010 and Issue 1, Volume 3 will be available in September 2010.

www.labbmagazine.com

LABB LOVES: http://labbmagazine.blogspot.com/

The full Steven Klein-directed Lady Gaga “Alejandro” video is out, complete with more of his favorite bowl cuts than you’d ever want to see, plus some Madonna-sourced elements (see: the sawed-off gun bra) and men dancing in heels.

Video here >>

ANTWERP, May 15, 2010 / — The true strength of Viktor & Rolf’s work is its genuine modesty. Although from time to time they make grand statements and their output can be astonishing in its proportions, the essence of their work is high-quality simplicity: look around you, take what you see and improve on it. No idealistic aims or wild fantasies – just add a golden finish to the lead of daily life.

All this is entirely in keeping with the Low Countries tradition that idiosyncrasy and uniqueness are only valued if they are kept at arm’s length, and that a modest attitude is expected. Viktor & Rolf have succeeded precisely because they have not rejected these conventions, yet have developed a wonderful sincerity that tests the boundaries of this sham context and so exposes its falsehood. They have thus set a new standard for coming generations of artists and designers without ever repudiating their origins.

It should therefore come as no surprise that Viktor & Rolf have finally felt the need to put their entire oeuvre in perspective. The result is Dolls – a blend of unparalleled creative power and artistic magnificence, coupled with the sincerity and true modesty that typifies their work. Best of all, Dolls has found a home with Job and Nynke, who (as Studio Job) have so much in common with Viktor & Rolf – a highly successful personal relationship that goes back to the 1990s.

Exhibition

18 May – 16 July 2010 / 14:00 – 18:00

Tuesday – Friday and by appointment

Studio Job Gallery

Begijnenvest 8

2000 Antwerp, Belgium

In a court of the elegant 7th arrondissement of Paris, a private entrance gives access to the historic residence of famed couturier and art collector Yves Saint Laurent, where he lived from 1972 to 2008. A magnificent 5,600-sq.ft. south facing duplex opening onto a 4,700-sq.ft. garden with an unimpeded view on the private park lying beyond, it includes:

On the higher level, measuring 3,700 sq.ft.: 1st floor (US 2nd) on the garden side, ground floor (US 1st) on the court side

Magnificent entrance hall with black marble floor and ceiling gilded with gold leaf

750-sq.ft. grand salon with 12.5-ft. high ceiling and 5 tall windows overlooking the garden, floor-to-ceiling oak panelling and fireplace

Dining room with fireplace, overlooking the garden

Music room with 3 tall windows overlooking the court

Large master suite overlooking the garden with dressing room, bathroom, and fireplace

Two other bedrooms overlooking the court, one bath

Pantry with dumbwaiter
Laundry
Linen room
Staff quarters

On the lower level, measuring 1,900 sq.ft.: ground floor (US 1st) on the garden side, basement on the court side

Hall with cabinet of curiosities

Large 750-sq.ft. salon cum library with fireplace and 5 French windows opening onto the terrace and garden

Large bedroom opening onto the garden with dressing room and bathroom, oak panelling and fireplace

Professional kitchen

Living room for staff

Wine or storage cellar(s)

2 parking spaces in the court

One 635-sq.ft. apartment on the top floor and two 130-sq.ft. maid’s rooms

Price on request

CO-EXCLUSIVE LISTING

http://www.menagerhug.com/

Forbes just released their yearly list of top-earning models: Gisele Bundchen holds the top spot — which she’s had for at least six years now — with $25 million in estimated earnings from June 2009 to June 2010.

In fact, there hasn’t been a lot of movement in the list in the past year — for 2010, the top ten is exactly the same for the second year in a row, with the exception of Natalia Vodianova moving up from seventh position to tie Alessandra Ambrosio in sixth place. Same goes for earnings — not a lot of change: Bundchen, Heidi Klum, Doutzen Kroes, Natalia Vodianova, Daria Werbowy are all estimated to be pulling in the same amount this year as they did last year, with the rest of the top ten’s earnings only going up or down by half a million. Miranda Kerr is the only exception — she gained the most year over year, earning $4 million this year versus $3 million last year.

The full 2010 list, with last year’s rank and estimated 2009 earnings in parentheses:

Gisele Bundchen, $25m (1 — $25m)

Heidi Klum, $16m (2 — $16m)

Kate Moss, $9m (3 — $8.5m)

Adriana Lima, $7.5m (4 — $8m)

Doutzen Kroes, $6m (5 — $6m)

Alessandra Ambrosio, $5.5m (6 — $6m)

Natalia Vodianova, $5.5m (7 — $5.5m)

Daria Werbowy, $4.5m (8 — $4.5m)

Miranda Kerr, $4m (9 — $3)

Carolyn Murphy, $3.5m (10 — $3m)

May 11, 2010 – Schick® Quattro for Women®, first brand to design a high performance four bladed razor for women, is proud to kick off the 2nd Annual ‘Design-A-Roxy Bikini’ contest with fashion brand Roxy. Schick® Quattro for Women® and Roxy will launch the ‘Design-A-Roxy Bikini’ contest this week at http://designabikini.roxy.com. Future fashion designers, ages 13 and older, will have the opportunity to submit a bikini design using a Roxy design template. Designs can then be entered for a chance to win a grand prize which includes a $5,000 cash prize and have their actual design made into a bikini for them to sport on the beach.

The contest which will run through July 31, 2010 allows young women to create and design a stylish bikini. During the month of August, Roxy’s VP of Design Summer Rapp will review all entries and select the top 10 design entries. These designs will then be judged by a fashionable panel of experts that include: Roxy VP of Design Summer Rapp, Roxy Pro Surfer Kassia Meador, Fabsugar Fashion Blogger Samantha Durbin, Seventeen Magazine Fashion ditor Marissa Grumer and Schick® Quattro for Women® Fashion/Celebrity Stylist Jennifer Rade. The lucky grand prize winner will be announced on September 1, 2010. In addition to the grand prize winner, a runner up design winner will be awarded a $2,000 cash prize.

Throughout the contest, entrants and voters will have the opportunity to win an array of prizes, which include a Quattro for Women® Summer Fun Pack Tote filled with all the essential items needed for a stylish, smooth summer, as well as Roxy gift certificates and merchandise and more. Every Tuesday Quattro for Women® will feature its favorite new bikini design on its Facebook page.

“We are very excited to partner with Roxy on the Design-A-Roxy-Bikini contest again this year,” says Heather Inyart, Brand Manager, Schick® Quattro for Women®. “Quattro for Women® is a fashion-forward collection of razors that give women a beautifully smooth shave – which as we know is a must-have when wearing a Roxy bathing suit.”

The stylish Schick® Quattro for Women® family of shaving products gives women the ultimate long-lasting smooth shave so they can skip a day or two. The brand’s signature fuchsia metal razor has been recently redesigned to be more comfortable to hold while its innovative TrimStyle razor remains the only razor and bikini trimmer in one. For the active fashionista, Quattro for Women also offers premium disposable razors in a variety of fun colors so women don’t have to give up performance or style when they’re on the go. The complete Schick® Quattro for Women® collection is available at drug, grocery, and mass merchandisers nationwide.

Schick® Quattro for Women® is manufactured by Energizer Personal Care. A leading manufacturer of razors and blades around the world, Energizer Personal Care is a division of Energizer Holdings Inc. (NYSE: ENR), headquartered in St. Louis, Missouri. It ranks as the world’s second largest manufacturer and marketer of wet shave products for men and women iunder the Schick and Wilkinson Sword brands. For more information on shaving and the new Schick® Quattro for Women®, visit quattroforwomen.com. ©2010 Energizer. Schick, Quattro and other marks are trademarks of Energizer.

About Roxy:

Roxy is a brand of Quiksilver, Inc. (NYSE:ZQK), the world’s leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, wintersports equipment, footwear, accessories and related products. The Company’s apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage.

The reputation of Quiksilver’s brands is based on different outdoor sports. The Company’s Quiksilver, Roxy, DC and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding, and its beach and water oriented swimwear brands including Radio Fiji. The Company continues to make snowboarding equipment under its DC, Roxy, Lib Technologies, Gnu and Bent Metal labels.

The Company’s products are sold in over 90 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders Club shops and other company-owned retail stores, other specialty stores and select department stores. Quiksilver’s corporate and Americas’ headquarters are in Huntington Beach, California, while its European headquarters are in St. Jean de Luz, France, and its Asia/Pacific headquarters are in Torquay, Australia.

HELLO SUMMER.

ROXY invites you to preview our Summer 2010 collection & take a sneak peek at Fall 2010.

Tuesday, May 18th
5:00pm-8:00pm
Cactus Lounge @ The Standard Hotel
8300 Sunset Blvd
West Hollywood, CA

www.roxy.com