Daily Analysis – Sep 4, 2025
Top Companies
Dolce & GabbanaIWC SchaffhausenMulberryLVMH
Top Sectors
Luxury FashionLuxury Watches
Top Countries
ItalyUnited KingdomFrance
Summary
Dolce & Gabbana moves to vertically integrate by taking control of Fabi even as losses and leverage rise, IWC Schaffhausen taps certified pre-owned to capture secondary-market value, and Mulberry installs a new chief customer and digital officer to reboot growth. LVMH’s prize for Soshiotsuki underscores the group’s pipeline for emerging talent and the sector’s escalating focus on brand storytelling and customer activation.
Key News for Today
Dolce & Gabbana acquires supplier Fabi to shore up footwear manufacturing amid weak profits and rising leverage.
Why it matters: Vertical integration can stabilize quality, lead times, and margins in a core category while the group faces financial pressure.
Impact: Near-term cash demands add strain to a deeper net debt position, but medium-term margin protection and capacity security could support recovery.
What to follow: Watch FY25 gross margin in footwear, working capital and net debt trends, and any investor entry or bank refinancing updates.
IWC Schaffhausen launches certified pre-owned capsule IWC Curated at its Battersea boutique with up to eight-year warranties.
Why it matters: Owning the secondary market helps capture margin, control provenance, and deepen engagement with collectors.
Impact: Adds incremental high-margin revenue and strengthens brand equity, intensifying competition for third-party resellers.
What to follow: Monitor CPO sell-through, average selling price vs new models, customer acquisition costs, and rollout to more stores or online.
Mulberry appoints Tom Burrow as first chief customer and digital officer to accelerate turnaround after revenue slide.
Why it matters: Upgrading digital, CRM, and omnichannel is critical to reconnecting with core customers and lifting full-price sell-through.
Impact: Potential DTC conversion and US reacceleration gains, but execution risk is high given recent losses and reliance on shareholder funding.
What to follow: Track quarterly DTC growth, US mix, gross margin progression, and cost savings delivery versus the transformation plan.
Soshiotsuki wins the 2025 LVMH Prize, signaling LVMH support for next-gen Japanese talent.
Why it matters: The prize can rapidly elevate an emerging brand while giving LVMH early access to future collaborators or hires.
Impact: Expect a step-up in wholesale interest and visibility for Soshiotsuki, while LVMH reinforces its cultural capital and talent pipeline.
What to follow: Watch new stockists, social engagement spikes, and mentorship-driven partnerships or capsule launches over the next 12 months.