Fashion Designers: Success Coupled with Failure
Fashion designers are often fantastic when working for other brands but fail with their own. Karl Lagerfeld was tremendously successful at Chanel and Fendi. His namesake brand was a failure. Emma Hill did a great job at Mulberry. Despite this, her own brand, Hill & Friends, has proven to be nothing more than a gigantic disappointment.
Morley Leads Paul Smith
According to inside sources, fashion designers such as Paul Smith had savvy MD, John Morley, to thank for his achievements. Morley joined the brand in 1989 as a director when its turnover was only £7 million. As he was a partner in the firm that audited Paul Smith, it’s likely that he had an advisory role before he worked for the label. Morley ensured that Smith did not overspend on fitouts for new stores, at the same time controlling costs with a tight fist. Morley reaped the rewards of his management skills by receiving £30 million when he sold his shares and resigned from the brand in 2014.
Wise Designers
It comes as no surprise then, that these experienced designers have wisely decided not to launch their own brand:
- Riccardo Tisci – ex Givenchy
- Clare Waight Keller – ex Givenchy
- Christopher Bailey – ex Burberry
- Sarah Burton – Alexander McQueen
Loewe’s Shining Star
What about the star of the show, Jonathan Anderson, with his non-conformist and androgynous approach to fashion and design? Anderson has sprinkled some magic on the fortunes at LVMH Spanish brand, Loewe. His eponymous brand, JW Anderson, has not been so lucky, despite massive investment by LVMH.
Troubled Times at JW Anderson
LVMH invested in JW Anderson in September 2013 and by 31 December 2019 had pumped a staggering £20 million into this small brand. Since the LVMH investment, JW Anderson has lost more than £16 million. While 2017 looked to be a positive year for the brand, with turnover peaking at £21 million, this wasn’t destined to last. In 2018, the JW Anderson turnover sank to £17 million, dropping again in 2019 to £14 million.
The Lucky and the Unlucky
The 2020 forecast for JW Anderson? Probably not good, given the economic turmoil created by the coronavirus pandemic. Nevertheless, the good news is that LVMH will continue to invest in the brand, possibly because Anderson has been a hit at Loewe. The same cannot be said for the British shoe brand, Nicholas Kirkwood. After racking up losses year after year, LVMH has decided to offload the brand, selling it back to its founder.
