September 7, 2021
After an 18-month hiatus, fashion houses will show off their latest collections in star-studded runway shows September 8-12 during New York City’s long-awaited Fall Fashion Week. Though the event is held in several cities, New York, London, Milan, and Paris are the most prominent. Unlike last season’s virtual showcase, this year’s events will take place in-person – albeit with smaller crowd sizes.
Though most of those interested in Fashion Week look for the new designs and what attending celebrities may be wearing, the business side of the industry is massive and growing. According to Research and Markets, a provider of market insights and analysis, the global fashion market is expected to grow from $25.09 billion in 2020 to $30.58 billion in 2021. For the Big Apple, the event generates around $900 million when factoring in the tourism, local jobs, and tax revenue surge it provides, according to IMG, which manages Fall Fashion Week.
As New York Fall Fashion Week is about to get underway, here is a look at a few fashion houses whose designs grace the runways.
With brands that include Coach New York’s iconic lineup of handbags, luggage, accessories; Kate Spade New York’s portfolio of handbags, wallets, apparel, shoes and accessories; and Stuart Weitzman shoes, Tapestry, Inc. (Tii:TPR) is a major player in the fashion industry. The New York-based house of modern luxury accessories and lifestyle brands is coming off a strong year, generating more than $5.7 billion in sales for its fiscal year ended July 3, 2021. Strong performance from its brands resulted in Tapestry’s 2021 revenues increasing nearly 16% to exceed pre-pandemic levels. As did many other consumer-forward companies, Tapestry built up its e-commerce platform last year while brick-and-mortar sales suffered from lockdown mandates. This year, the company reaped the rewards to the tune of approximately $1.6 billion in e-commerce transactions and 600,000 new online customers in fiscal 2021.
Covering the full spectrum of fashion luxury categories, Capri Holdings Limited (Tii:CPRI) has a world-renowned portfolio of upscale brands, including Versace, Jimmy Choo, and Michael Kors. The company, whose revenues totaled approximately $4 billion for its fiscal year ended March 27, 2021, expects sales to grow to $5.3 billion for fiscal 2022. The fashion holding company, whose shares are up more than 230% for the trailing 12 months ended September 3, 2021, reported that revenue for its first quarter ended June 26, 2021, increased 178%. Management cited better than anticipated results across all three of its luxury brands.
PVH Corp. (Tii:PVH) boasts two iconic multi-billion-dollar brands – Tommy Hilfiger and Calvin Klein. The global apparel company behind Tommy Hilfiger’s classic, American cool style and Calvin Klein’s sensual aesthetic is also one of the world’s largest with $7.1 billion in 2020 revenues. With international performance above 2019’s pre-pandemic levels and strong sales from its flagship brands, PVH’s second-quarter revenues increased 46% to $2.313 billion. As was the case with other fashion houses, PVH benefited significantly from its e-commerce platform. Revenue through digital channels grew approximately 35% compared to the prior-year period. Recognizing that many consumers are still working from home, Tommy Hilfiger plans to showcase a line of work-from-home-ready comfortable apparel at this year’s Fashion Week.
More than 75 brands reside within the massive portfolio of LVMH Moët Hennessy - Louis Vuitton, Société Européenne (Tii:LVMHF). With 44.7 billion euros (approximately $53 billion) in revenue in 2020 and a retail network of over 5,000 stores worldwide, the global French luxury goods holding company includes fashion brands Christian Dior, Givenchy, Marc Jacobs, Stella McCartney, Loro Piana, Kenzo, Celine, Fenty, and Bulgari. Though the company has a strong presence in the apparel, jewelry, wine & spirits, cosmetics, retail and other industries, the 167-year-old conglomerate is looking to add the cycling business to its portfolio. Cycling enthusiasts can purchase a Louis Vuitton luxury bicycle for $28,900 – roughly the cost of a 2022 Honda CR-V sport utility vehicle. On the earnings side, LVMH delivered a record first half of 2021 with revenues increasing 56% from 2020 and 14% from pre-pandemic 2019 thanks to a solid performance from its Fashion & Leather Goods business group.
More than 230,000 people flock to New York Fashion Week to take in the shows, displays, parties, or just to be seen. After two seasons of virtual shows, expect these and other brands to look to make a big of a splash as possible on one of the fashion industry’s largest stages.