Even though Anna Wintour is staying, but the once deep pockets of the Condé Nast faced a $120 Million loss last year.
The brand behind Vogue, New Yorker and Vanity Fair are forced to take some austerity measures after losses of up to $120 Million last year. They have taken measures to cut spending and be more digitally savvy, but it is expected to adopt strategies to ensure that it does not disappear completely.
After Boston Consulting Group did a monthlong audit of their internal systems, Robert A. Sauerberg Jr., the chief executive of Condé Nast, plans to address senior staff members on August 8th.
The company having lost more than $120 million last year, plans to put three of its 14 magazines — Brides, Golf Digest and W — up for sale, three executives said. The marquee titles, including Vogue, Vanity Fair and The New Yorker are safe, for now.
The decades-long magazine boom that made the ostentatious possible, is a thing of the past. A shift in media-consumption has elevated Instagram, Snapchat and YouTube above the printed page. Before Time Inc. was sold to the Meredith Corporation, it experienced sharp declines in annual revenue. The ad buying firm Magna projects print magazine ad sales will fall by a double digit rate this year.
The $120 million loss in 2017 came about because of a sharp decline in ad revenue generated by the print magazines. Gains in the digital arena have helped offset the loss, but not enough to make the company profitable. Condé Nast reached its decision to entertain offers for Brides, Golf Digest and W partly on the recommendation of Boston Consulting Group.
This story appeared in the New York Times.
Fifteen current and former male models and thirteen male assistants and models have accused top fashion photographers Mario Testino and Bruce Weber, of coercive sexual behavior. The investigation has been in the works since the last couple of months.
Though representatives of both the accused have denied all allegations, publishing giant Condé Nast have announced, it will stop working with them. So far spokespersons for Michael Kors Holding ltd and Stuart Weitzman, have also said that they will not be working with MarioTestino in the foreseeable future.
In mid December, TSG Consumer Partners (“TSG”), a leading private equity firm focused exclusively on the branded consumer sector, and Huda Beauty, one of the world's fastest-growing beauty brands, announced that TSG has acquired a stake in Huda Beauty. Ofcourse, the financial terms of the transaction were not disclosed. TSG see Huda Beauty's industry leading digital reach, their amazing global influence and ofcourse best-in-class product offerings as a grounds for joining forces and help lead the brand into the future.
Fashion week is NO MORE! thats according to Gucci.
In a virtual press conference, the label’s creative director, Alessandro Michele, announced that Gucci was slashing the number of fashion shows it holds each year from five to two. Declaring the fashion week calendar obsolete, Michele said he was no longer adhering to a rota staked out by spring/summer, autumn/winter, cruise and pre-fall shows. “I think these are stale and underfed words … clothes should have a longer life than that which these words attribute to them,” he said. Instead, the brand will show “seasonless” collections twice a year. There are no plans for a show in September, when the Gucci collection would normally be staged as a key part of Milan fashion week.
All fashion shows have stopped in its tracks due to Covid-19, with mens-wear and haute couture shows scheduled for June and July cancelled, and the September fashion weeks in doubt. A question mark hangs over not just when – but whether – any of the events will ever come back.
“Above all, we understand we went way too far,” Michele writes on Instagram. “Our reckless actions have burned the house we live in. We conceived of ourselves as separated from nature, we felt cunning and almighty.”
Michele, who has a passion for flowery maximalism that encompasses his prose as well as his clothes, added: “We usurped nature, we dominated and wounded it. We incited Prometheus, and buried Pan."
“So much haughtiness made us lose our sisterhood with the butterflies, the flowers, the trees and the roots. So much outrageous greed made us lose the harmony and the care, the connection and the belonging.”
As the mightiest brand to come out in support of a move to a leaner, less wasteful fashion system, this announcement is significant.
Discussions on the topic of sustainability has been ongoing in the industry for the past month, but the big brands have until now been mostly silent.
The biggest labels, which have profited the most from the system as it stands and have the necessary financial cushion to ride out the incoming economic crisis, have been less motivated to radical change than smaller brands. By throwing their weight behind the forces of change, Gucci has the ability to shift the balance of power in this conversation.
Last month, Saint Laurent announced it would sit out Paris fashion week this September and set its own schedule going forward, a decision made in amid “waves of radical change”.
The brand will “lead its own rhythm … [and] take ownership of its calendar”. Saint Laurent’s opt-out was notable because its catwalk shows, held on the Friday evening of each Paris fashion week on a huge open-air catwalk directly beneath the Eiffel Tower, have become a red-letter date in the French fashion calendar, drawing a supermodel cast, a celebrity front row and large crowds who watch from behind barriers. The absence of a marquee name central to the notion of Parisian chic is a blow to Paris fashion week’s status as the heart of French fashion.
Gucci’s revenue for 2019 was €9.6bn (£8.6bn), dwarfing its Kering stablemate Saint Laurent, which recorded revenue of €2bn for the same period. As the largest and most profitable brand in the Kering luxury group, which also owns Saint Laurent and Bottega Veneta, Gucci exerts influence across the industry.
Gucci’s influence is not merely economic. Since taking over five years ago, Michele has positioned himself at the progressive edge of fashion’s engagement with culture.
On the catwalk, his male models wear pussy-bow silk blouses and babydoll dresses. He has dressed the pop star Harry Styles in pearl earrings on stage and the actor Jared Leto in a floor-length evening gown on the Met Gala red carpet.
His embrace of gender fluidity has revolutionised the traditional codes of menswear embedded in Italian fashion, and shifted the mainstream away from what he has called “an aesthetic of toxic masculinity”.
Overhaul of the fashion week system and its heavy carbon footprint has been mooted for years, but in 2020 change is becoming an economic necessity. Kering and LVMH, the two largest luxury groups, recorded a drop in revenue of about 15% for the first three months of this year.
Jean-Marc Duplaix, Kering’s chief financial officer, told Womenswear Daily last month that the group was planning “drastic” cost reductions at brand level as it braced for ongoing poor results.
In recent years, Gucci has staged blockbuster shows at Westminster Abbey in London and at the Capitoline Museum in Rome, in addition to events during fashion week. The latest cruise collection had been scheduled for an unveiling in San Francisco last week, until the pandemic forced cancellation.