Christian Louboutin Sells Stake To Ferrari Owners

Exor is to invest 541 million euros, valuing the Christian Louboutin brand at 2.2 billion euros.

By Miles Socha 09/03/2021

“I couldn’t dream of a better partner,” Christian Louboutin enthused on Monday night, roughly 12 hours after Exor, an Agnelli family holding, revealed that it is investing 541 million euros ($838 million) to become a 24 per cent shareholder in his Paris-based company.

Louboutin and his business partner Bruno Chambelland, a founding shareholder, retain the majority ownership.

The designer, whose BFFs include film producer and director Ginevra Elkann, noted that he’s been friendly with the family for decades and even crossed paths with John Elkann, chairman and chief executive officer of Exor and Ginevra’s brother, about 20 years ago in China when both were on a business trip.

Expanding Louboutin’s presence in China, and extending its digital and e-commerce platforms, are among the headline projects the partners said they would activate to “accelerate the next phase of the company’s development.

“It is a great company. They know about luxury, but they are actually bigger than just the luxury world,” Louboutin said of Exor. “When you want to expand, you have to think beyond your scope. They’re not limited by the parameters of fashion. And they definitely know about China.”

He also lauded that Exor would be a partner that respects individuality and originality.

“I have admired over the years Christian’s talent in creating one of the world’s great, independent global luxury brands,” John Elkann said in a statement. “We share the same family spirit, culture and values, which are the basis of a strong partnership. Christian Louboutin’s extraordinary creativity, energy and unique vision are precisely the qualities needed to build a great company.”

The transaction is expected to close in the second quarter, and suggests the Agnelli family, owners of Ferrari, have a growing appetite for fashion.

In December, Exor said it would invest around 80 million euros in Chinese luxury brand Shang Xia and become the company’s majority shareholder alongside Hermès International and founder Jiang Qiong Er.

Exor is also a shareholder in The Economist Group, PartnerRe, Stellantis, CNH Industrial, GEDI Gruppo Editoriale and Juventus FC.

 

Christian Louboutin

Christian Louboutin  Courtesy of Louboutin

The Louboutin deal underscores keen investor interest in the footwear category. Earlier this month, private equity giant L Catterton and family holding Financière Agache, investment vehicles backed by LVMH Moët Hennessy Louis Vuitton and luxury titan Bernard Arnault and his family, respectively, acquired a majority stake in Birkenstock, with plans to expand the sandal-maker in Asia, open more stores and ramp up e-commerce.

That deal followed a bumper initial public offering in February for Dr. Martens, and amid a sale process for Reebok, currently owned by Adidas.

One of the world’s most famous and admired footwear designers, Louboutin founded his brand in Paris in 1991 and has steadily built a global following for his red-soled heels, expanding into men’s shoes, handbags and small leather goods. In 2014, he launched Christian Louboutin Beauté. Today, the brand counts around 150 boutiques in 30 countries.

Monday’s transaction values the company at roughly 2.2 billion euros ($3.4 billion) and points to family offices as an important new actor in mergers and acquisitions.

“The luxury sector is particularly suited to family-office investment — it tends to be very resilient but a long-term play, and it is all about growth equity and not so much financial engineering or leverage,” said Pierre Mallevays, co-head of the merchant banking department at Stanhope Capital Group in London. 

He noted that family offices, especially single-family offices, are investing their own money “so they have much more flexibility than typical private equity funds when it comes to due diligence requirements and, most importantly, investment horizon.”

Mallevays allowed that not so long ago, most family offices “would not necessarily have the adequate internal resources to properly evaluate such direct investment deals. With the rise of asset values globally, this is no longer the case, and most of them are now able to evaluate and monitor direct investment opportunities in a number of sectors.”

As part of the transaction, Exor is to nominate two of the seven members of Louboutin’s board of directors.

Exor noted that “Christian Louboutin has a highly regarded and experienced management team that has successfully implemented a disciplined strategy focused on excellence and growth.”

In a separate interview on Monday, Louboutin’s group managing director Alexis Mourot said orders for the brand’s fall 2021 collections, unveiled to the press during Paris Fashion Week, exceeded those for fall 2019, speaking to strong momentum for the company.

He cited particularly robust business in the U.S., its biggest market representing about 42 per cent of revenues via 150 points of sales. Europe accounts for 40 per cent of the business, and the Asia Pacific region 18 per cent. At present, Louboutin operates 15 stores in China, representing about 7 per cent of the business. 

“We entered the market quite late,” Mourot allowed.

Other future growth vectors include category expansion, and digital channels.

At present, women’s shoes account for 57 per cent of the business, men’s shoes 31 percent and leather goods 12 percent, with the latter two categories expected to represent higher percentages in future.

Digital channels currently account for about 20 percent of the business, up from 12 per cent in 2019, and should quickly reach 30 per cent in a few years, Mourot said. The company operates e-commerce platforms in Europe, the U.S., the Middle East, Japan and Hong Kong for Southeast Asia, plus a concession on Tmall.

While often stereotyped as a stiletto-maker, Louboutin has in recent years widened its offering of flats, sneakers, booties and other low-heeled styles, and these now represent a bigger part of the business.

“We continue to see good business with high heels,” Mourot noted, attributing that partly to the fact that many shoemakers have completely exited that part of the business.

In the interview, Louboutin said working on his retrospective exhibition, which debuted in February 2020 at the Palais de la Porte Dorée in Paris, made him reflect on his legacy. 

“I realized I needed to think about the next 30 years,” he said. “To go to the next chapter, I need to think about the development and to challenge myself, and also to challenge the company.

“It’s great to be challenged by people who have a different experience, but who are also listening.”

This article originally appeared on WWD.

ADVERTISE WITH US

Subscribe to the Newsletter

Stay Connected

You may also like.

Painted Black

Dion Lee is teaming up with Cho Cho San for an Australian Fashion Week event.

By Horacio Silva 10/05/2024

The more things change, the more things stay the same. Nowhere more than in the fashion world. Despite the vagaries of taste, black remains the go-to colour of choice. Fitting, then, that for next week’s Australian Fashion Week, the perennially black-clad media darling Dion Lee has partnered with Pott’s Point Izakaya joint Cho Cho San on a black-themed late-night ramen bar.

Lee, based in New York and not showing in Sydney next week, has worked with the restaurant to create a menu inspired by his inky, haute-industrial aesthetic and favourite flavours.

As part of the signature offering ($50pp) guests are offered “Dion’s Martini” on arrival (his take on the classic vodka drink spiked with a black olive, natch), a Tokyo-style shoyu ramen with shitake mushrooms, smoked daikon and crunchy tempura shiso leaf, and a winning black sesame and cocoa soft-serve ice-cream replete with black cone. (Trust us, it tastes infinitely better than it sounds.)

Lee rarely strays outside his fashion lane, but a little blackbirdie tells us to expect an announcement soon about a major new collaboration. Let’s hope it involves black ice cream.

Cho Cho San x Dion Lee: Late Night Ramen Bar

Available from May 13-16, 5pm to late.

Signature set: $50pp includes Dion’s Martini, Tokyo Shoyu Ramen and Black Sesame Soft Serve.

To book click here

Buy the Magazine

Subscribe today

Stay Connected

A New Chapter for Jaeger-LeCoultre’s ‘Reverso Stories’

A special Reverso exhibit arrives in Sydney this week.

By Josh Bozin 08/05/2024

Few watch enthusiasts would be unfamiliar with Jaeger-LeCoultre and its enduring Reverso collection. Since 1931, the Reverso has been celebrated as one of the great dress watches of the 20th century.

In recent years, the watch has gone from strength to strength—in 2023 alone, we received the new Reverso Tribute Chronograph, the impressive Duoface Tourbillon, and the slimmer Reverso Tribute Small Seconds—capturing the imagination of casual observers, collectors, and those looking to scale the horological ladder.

Jaeger-LeCoultre
Jaeger-LeCoultre

It is also part of the cultural conversation thanks to exceptional branding experiences, such as ‘Reverso Stories’, a travelling experiential trunk show. Jaeger-LeCoultre is again summoning its movable experience to Australia, this time in the heart of Sydney’s CBD. For a limited time, eager fans can glimpse the Reverso collection up close via a multi-sensory exhibition tracing the history of this remarkable timepiece.

Presented in four chapters ( Icon, Style and design, Innovation, and Craftsmanship), the Reverso story will be told through the lens of Jaeger-LeCoultre’s expert watchmakers, who combine nine decades of craftsmanship, inventiveness, and design into one interactive experience.

As a bonus, guests will be privy to a large-scale art installation by Korean artist Yiyun Kang—commissioned by the Maison under its ‘Made of Makers’ programme—and the launch of three exceptional new Reverso timepieces, yet to be revealed. These watches will showcase skills such as enamelling, gold-leaf paillonage, and gem-setting, mastered by the manufacturer’s in-house Métiers Rares (Rare Handcrafts) atelier.

Jaeger-LeCoultre
Jaeger-LeCoultre

Completing the immersion into the spirit of Art Deco, guests will be able to enjoy a complementary refreshment post-experience at the pop-up Jaeger-LeCoultre 1931 Café.

‘Reverso Stories’ will be held in Sydney’s Martin Place from 10–19 May 2024. It will be open daily from 9 a.m. to 7 p.m. (and 5 p.m. on Sundays) and free to the public. Visitors are welcome to book online here or register upon arrival.

For more information, visit Jaeger-LeCoultre.

 

Buy the Magazine

Subscribe today

Stay Connected

Watch of the Week: TAG Heuer Formula 1 | Kith

The legendary sports watch returns, but with an unexpected twist.

By Josh Bozin 02/05/2024

Over the last few years, watch pundits have predicted the return of the eccentric TAG Heuer Formula 1, in some shape or form. It was all but confirmed when TAG Heuer’s heritage director, Nicholas Biebuyck, teased a slew of vintage models on his Instagram account in the aftermath of last year’s Watches & Wonders 2023 in Geneva. And when speaking with Frédéric Arnault at last year’s trade fair, the former CEO asked me directly if the brand were to relaunch its legacy Formula 1 collection, loved by collectors globally, how should they go about it?

My answer to the baited entreaty definitely didn’t mention a collaboration with Ronnie Fieg of Kith, one of the world’s biggest streetwear fashion labels. Still, here we are: the TAG Heuer Formula 1 is officially back and as colourful as ever.

As the watch industry enters its hype era—in recent years, we’ve seen MoonSwatches, Scuba Fifty Fathoms, and John Mayer G-Shocks—the new Formula 1 x Kith collaboration might be the coolest yet. 

TAG Heuer
TAG Heuer

Here’s the lowdown: overnight, TAG Heuer, together with Kith, took to socials to unveil a special, limited-edition collection of Formula 1 timepieces, inspired by the original collection from the 1980s. There are 10 new watches, all limited, with some designed on a stainless steel bracelet and some on an upgraded rubber strap; both options nod to the originals.

Seven are exclusive to Kith and its global stores (New York, Los Angeles, Miami, Hawaii, Tokyo, Toronto, and Paris, to be specific), and are made in an abundance of colours. Two are exclusive to TAG Heuer; and one is “shared” between TAG Heuer and Kith—this is a highlight of the collection, in our opinion. A faithful play on the original composite quartz watch from 1986, this model, limited to just 1,350 pieces globally, features the classic black bezel with red accents, a stainless steel bracelet, and that creamy eggshell dial, in all of its vintage-inspired glory. There’s no doubt that this particular model will present as pure nostalgia for those old enough to remember when the original TAG Heuer Formula 1 made its debut. 

TAG Heuer
TAG Heuer

Of course, throughout the collection, Fieg’s design cues are punctuated: the “TAG” is replaced with “Kith,” forming a contentious new brand name for this specific release, as well as Kith’s slogan, “Just Us.”

Collectors and purists alike will appreciate the dedication to the original Formula 1 collection: features like the 35mm Arnite cases—sourced from the original 80s-era supplier—the form hour hand, a triangle with a dot inside at 12 o’clock, indices that alternate every quarter between shields and dots, and a contrasting minuterie, are all welcomed design specs that make this collaboration so great. 

Every TAG Heuer Formula 1 | Kith timepiece will be presented in an eye-catching box that complements the fun and colour theme of Formula 1 but drives home the premium status of this collaboration. On that note, at $2,200 a piece, this isn’t exactly an approachable quartz watch but reflects the exclusive nature of Fieg’s Kith brand and the pieces he designs (largely limited-edition). 

TAG Heuer
TAG Heuer

So, what do we think? It’s important not to understate the significance of the arrival of the TAG Heuer Formula 1 in 1986, in what would prove integral in setting up the brand for success throughout the 90’s—it was the very first watch collection to have “TAG Heuer” branding, after all—but also in helping to establish a new generation of watch consumer. Like Fieg, many millennial enthusiasts will recall their sentimental ties with the Formula 1, often their first timepiece in their horological journey.  

This is as faithful of a reissue as we’ll get from TAG Heuer right now, and budding watch fans should be pleased with the result. To TAG Heuer’s credit, a great deal of research has gone into perfecting and replicating this iconic collection’s proportions, materials, and aesthetic for the modern-day consumer. Sure, it would have been nice to see a full lume dial, a distinguishing feature on some of the original pieces—why this wasn’t done is lost on me—and perhaps a more approachable price point, but there’s no doubt these will become an instant hit in the days to come. 

The TAG Heuer Formula 1 | Kith collection will be available on Friday, May 3rd, exclusively in-store at select TAG Heuer and Kith locations in Miami, and available starting Monday, May 6th, at select TAG Heuer boutiques, all Kith shops, and online at Kith.com. To see the full collection, visit tagheuer.com

 

Buy the Magazine

Subscribe today

Stay Connected

8 Fascinating Facts You Didn’t Know About Aston Martin

The British sports car company is most famous as the vehicle of choice for James Bond, but Aston Martin has an interesting history beyond 007.

By Bob Sorokanich 01/05/2024

Aston Martin will forever be associated with James Bond, ever since everyone’s favourite spy took delivery of his signature silver DB5 in the 1964 film Goldfinger. But there’s a lot more to the history of this famed British sports car brand beyond its association with the fictional British Secret Service agent.

Let’s dive into the long and colourful history of Aston Martin.

Buy the Magazine

Subscribe today

Stay Connected

What Venice’s New Tourist Tax Means for Your Next Trip

The Italian city will now charge visitors an entry fee during peak season. 

By Abby Montanez 01/05/2024

Visiting the Floating City just got a bit more expensive.

Venice is officially the first metropolis in the world to start implementing a day-trip fee in an effort to help the Italian hot spot combat overtourism during peak season, The Associated Press reported. The new program, which went into effect, requires travellers to cough up roughly €5 (about $AUD8.50) per person before they can explore the city’s canals and historic sites. Back in January, Venice also announced that starting in June, it would cap the size of tourist groups to 25 people and prohibit loudspeakers in the city centre and the islands of Murano, Burano, and Torcello.

“We need to find a new balance between the tourists and residents,’ Simone Venturini, the city’s top tourism official, told AP News. “We need to safeguard the spaces of the residents, of course, and we need to discourage the arrival of day-trippers on some particular days.”

During this trial phase, the fee only applies to the 29 days deemed the busiest—between April 25 and July 14—and tickets will remain valid from 8:30 am to 4 pm. Visitors under 14 years of age will be allowed in free of charge in addition to guests with hotel reservations. However, the latter must apply online beforehand to request an exemption. Day-trippers can also pre-pay for tickets online via the city’s official tourism site or snap them up in person at the Santa Lucia train station.

“With courage and great humility, we are introducing this system because we want to give a future to Venice and leave this heritage of humanity to future generations,” Venice Mayor Luigi Brugnaro said in a statement on X (formerly known as Twitter) regarding the city’s much-talked-about entry fee.

Despite the mayor’s backing, it’s apparent that residents weren’t totally pleased with the program. The regulation led to protests and riots outside of the train station, The Independent reported. “We are against this measure because it will do nothing to stop overtourism,” resident Cristina Romieri told the outlet. “Moreover, it is such a complex regulation with so many exceptions that it will also be difficult to enforce it.”

While Venice is the first city to carry out the new day-tripper fee, several other European locales have introduced or raised tourist taxes to fend off large crowds and boost the local economy. Most recently, Barcelona increased its city-wide tourist tax. Similarly, you’ll have to pay an extra “climate crisis resilience” tax if you plan on visiting Greece that will fund the country’s disaster recovery projects.

Buy the Magazine

Subscribe today

Stay Connected