Virtua Weekly: Industry Insights and News
Welcome back to Virtua Weekly, where we break down the biggest stories emerging from inside Virtua and also the sports, fashion & outdoor industries each week!
Here's what you need to know:
We recently stepped in to help New Era Cap's HR Director EMEA, Anna Lloyd, in her quest to find an inspirational speaker to take part in their International Women’s Day event.
Anna wanted to secure a senior-level female in the sports and lifestyle industry. And we were delighted to introduce her to Kathy Hines, an inspirational Chief Marketing Officer recognised as one of the top industry diversity leaders globally.
Following the event, we asked Anna and Kathy for their perspectives on how the day unfolded. Click here for the full overview!
2. PUMA SIGNS DEAL WITH FORMULA 1 TO BECOME OFFICIAL LICENSING PARTNER
PUMA Group and Formula 1 have signed an agreement which will make Puma the official supplier at Formula 1 races, granting the brand the right to produce F1 branded apparel, footwear and accessories.
Puma boasts an extensive and prosperous legacy in the field of motorsport, having been a prominent player since the 1980s. Today, Puma holds the position of being the foremost provider of racing gear and lifestyle collections in Motorsport, partnering with prestigious names Mercedes AMG Petronas F1, Scuderia Ferrari, Alfa Romeo F1 Team Stake, BMW M Motorsport, and Porsche Motorsport.
In recent times, Formula 1 has experienced a significant surge in its popularity, attracting a younger and more varied fan base. The cumulative TV viewership has also increased substantially, reaching a staggering 1.5 billion viewers, and race attendance has hit a new record high in 2022.
Through this partnership, Puma has a chance to expand its already established supremacy in the sport by appealing to a wider audience, accessing diverse consumer groups, and integrating the style and inspiration of on-track gear into off-track fashion.
3. ADIDAS RELEASE ITS FIRST QUARTER 2023 RESULTS
The German retailer reported revenues on prior-year level in the first quarter of 2023.
Here are the major developments:
- Currency-neutral revenues reach prior-year level
- In euro terms, the company’s revenues declined 1% to € 5.274 billion in the first quarter.
- Wholesale revenues grew strongly in EMEA, Asia-Pacific and Latin America.
- Disciplined sell-in and Yeezy impact weighed on top-line in North America and Greater China
- Gross margin declined to 44.8%
- Operating profit of € 60 million, resulting in an operating margin of 1.1%
- Net loss from continuing operations of € 24 million
- Inventories increased 25% year-over-year to € 5.675 billion
- Adjusted net borrowings of € 6.630 billion
- The company expects to report an operating loss of € 700 million in 2023
Adidas CEO Bjørn Gulden:
“Q1 ended a little better than we had expected with flattish sales and a small operating profit of € 60 million. Sales growth excluding Yeezy was 9%. Great double-digit growth in Latin America and Asia-Pacific, and slight growth in EMEA despite Russia were in line with our plan. Total revenues in Greater China were still down 9%, but we achieved double-digit sell-out growth. This was better than expected and makes us optimistic for the rest of the year. The 20% sales decline in North America – down 5% excluding Yeezy – was in line with our conservative sell-in strategy due to the high levels of inventory and discounts in the market.
4. FARFETCH LAUNCHES REEBOK PARTNERSHIP
FARFETCH, the leading global platform for the luxury fashion industry, has commercially launched its European partnership with Reebok. This follows the deal announced with Reebok owner, Authentic Brands Group, in 2022.
The partnership is being managed by New Guards Group (NGG), a wholly owned FARFETCH company. NGG has formed a new division, NGG++, to operate the Reebok brand and focus on accelerating opportunities for NGG brands’ sportswear and sneaker categories.
Cristiano Fagnani, CEO of NGG++, said:
“NGG++ is now operating Reebok across Europe, overseeing marketing and e-commerce operations, as well as driving wholesale distribution. In addition, NGG++ has the vision to redefine the space between sport and culture to empower movement. I am excited by the opportunity to leverage the brand through luxury collaborations and new high-end products designed in Milan and made in Italy. All of this will help us accelerate wider opportunities for NGG in the sneaker and sportswear markets.”
5. TOM FORD STEPS DOWN FROM HIS NAMESAKE.
The Estée Lauder Companies Inc. has announced new appointments for the Tom Ford brand, following the departure of the founder's last collection.
Guillaume Jesel has been named as the brand's President and CEO, while Peter Hawkings will serve as the new Creative Director.
These changes will be effective upon the completion of the acquisition. Last November, the Estée Lauder Group acquired the Tom Ford brand for 2.8 billion dollars, and today the Marcolin Group has signed a new long-term licensing agreement with the Estée Lauder Companies for Tom Ford eyewear.
As part of the deal, Marcolin will pay 250 million dollars to Tom Ford, and financing has been secured through a capital increase by Marcolin's shareholders, as well as available cash.
The acquisition makes Estée Lauder the sole owner of the Tom Ford brand and its intellectual property, and ensures the brand's continuity and further evolution. Tom Ford and Domenico De Sole will advise on the brand through the end of 2023.
We’re looking for a bright, energetic individual, with a strong track record in sales to support our team of executive search consultants and lead all research & sourcing activity, working closely with clients in our existing markets of operation.
2. Global Sales Manager - Pureplayers & Digital Key Accounts
For this position we are looking for a hands-on business driver who has experience of working with major online key accounts such as Amazon, Zalando, YNAP, Farfetch etc. This role will have a key focus on Europe and also have a wider focus on global markets in line with business growth.
3. Head of Planning & Production (Europe)
For this position, we are looking for a planning specialist who has a background in apparel, footwear, or accessories manufacturing previously. This candidate will have a great understanding of working with vendors and suppliers across Europe and Asia and will be an absolute specialist when it comes to production planning for key business opportunities and product drops across all European markets.
4. Head of Logistics & Distribution (Europe)
For this role, we are looking for a highly energetic, up & coming individual, who in an absolute expert in supply chain, logistics, and distribution. The ideal candidate will have had good exposure to working with 3PL's across Europe and have a passion for supply chain excellence, continuous improvement, automation, and have a dynamic approach to leadership within a lean structure.
5. Digital Analytics Lead (Global)
We are looking for a hands-on commercial web analytics expert that has an entrepreneurial approach and can set-up a full analytics function from scratch. The ideal candidate will have a commercial outlook paired with a technical mindset and be able to translate data to commercial goals within a lean business environment.