British online fashion retailer ASOS Plc (ASOS.L) is exploring a sale of its Topshop brand, Sky News reported on Saturday.

ASOS bought the Topshop brand in 2021 from the administrators of Philip Green’s collapsed Arcadia group, along with its Topman, Miss Selfridge and HIIT brands for 265 million pounds ($321 million).

ASOS when approached by Reuters declined to comment.

ASOS on Tuesday said it was postponing the planned publication of its annual results until Nov. 1, saying its auditor PwC needed more time.

The group boomed during the pandemic but overhauled its business model last October after an economic downturn and operational problems hurt its profits and its shares.

By Nilutpal Timsina; Editing by Jason Neely

Learn more:

Dissecting the Rise, Fall and Future of Topshop

This week on the BoF Podcast, retail veteran and former Topshop brand director Jane Shepherdson and BoF senior editorial associate Tamison O’Connor break down Topshop’s rise and fall and what comes next for the British high street.

The point of a fashion conglomerate is scale and diversification: resources can be shared across the portfolio, keeping costs down. And if one brand has hit a rough patch, others can pick up the slack.

VF Corp. is getting neither of those benefits right now. Three of its four biggest brands – Vans, Timberland and Dickies – are losing customers, and booming sales at The North Face aren’t enough to make up for it. Behind the scenes, high debt levels are reducing the benefits of its size, as is a wide-ranging portfolio that includes Jansport backpacks, Dickies overalls and Supreme T-shirts.

A pair of activist investors have recently offered up some solutions: sell the non-core brands, cut costs and use the cash those moves free up to pay down debt and resuscitate Vans. Though not mentioned by either fund, Supreme’s struggles since VF’s $2 billion acquisition in 2020 are also weighing on the company’s outlook.

Their proposals probably aren’t too far off from what VF CEO Bracken Darrell is pushing internally. VF had already said it was shopping around its backpack brands before the activists had their say, for instance.

These moves are in keeping with the industry trend toward bigger, narrowly focused conglomerates: Kering sold the last of its non-luxury brands years ago, and there is constant speculation as to why hard luxury-focused Richemont holds onto ready-to-wear brands like Chloé. Tapestry’s pending acquisition of Capri is another example. It’s a bit harder to draw a through line between Vans, The North Face and Supreme than Coach and Michael Kors. But it’ll be easier once VF addresses the problems weighing on its balance sheet.

In a statement, VF said it is “taking immediate and decisive actions to strengthen the company’s position.” This week’s earnings will provide the first public opportunity for executives to lay out their own vision in more detail. Then it’s up to shareholders to decide which path they prefer.

What Else to Watch for This Week

Monday

Phoebe Philo releases her debut collection under her own brand

VF Corp. reports results

Tuesday

Halloween

Prada reports results

Eurozone reports third-quarter GDP

Wednesday

Estée Lauder Companies, Revolve, E.l.f., Next report results

US Federal Reserve interest rate decision (no change expected)

Thursday

Hugo Boss, Kontoor, Figs, Shopify report results

Bank of England interest rate decision (no change expected)

Friday

Eurozone September unemployment report

US October unemployment report

The Week Ahead wants to hear from you! Send tips, suggestions, complaints and compliments to brian.baskin@businessoffashion.com.

LONDON — Sometime on Monday, fashion obsessives around the world will stop whatever they are doing to take in the most anticipated fashion debut of the year. Phoebe Philo, who has been away from fashion for almost six years, after a decade-long stint at Celine which she transformed from a middling also-ran into one of the most influential labels in the industry, will finally take to phoebephilo.com to debut her first collection for her namesake brand, a project she revealed on BoF in July 2021.

After Phoebe left Celine in December 2017, the industry was taken by surprise when Hedi Slimane took on the brand’s creative leadership and retired her minimalist aesthetic. Slimane’s Celine is doing brisk business and is said to be approaching 3 billion euros in annual revenue, but it has left the tribe of so-called “Philophiles” without their beloved designer’s highly covetable bags, shoes and ready-to-wear.

Of course, Phoebe’s ‘old Celine’ designs are still in wide circulation on resale sites like Vestiaire Collective which says it has already facilitated the sale of 25,000 old Celine items this year. And several labels — from Jil Sander to The Row — have attempted to fill the gap she left in the market. Then there are also the labels helmed by her former protégés, including Daniel Lee, Nadège Vanhee-Cybulsk and Peter Do.

Such is Phoebe’s enduring influence that even new Gucci creative director Sabato de Sarno took a page from her playbook when he teased his new vision for the Italian luxury megabrand over the summer with advertisements featuring Daria Werbowy, the quintessential Phoebe Philo model, in a natural no makeup look that could be right out of an old Celine campaign.

This all begs the question, what will Phoebe do now to differentiate herself? She is certainly not the kind of designer whose aesthetic language stands still. Her collections from her successful five year stint as creative director at Chloé — boho chic dresses and bib front blouses, military jackets and of course the oblong Paddington bag with a huge padlock — don’t look at all the same as what she did during her time at Celine, which shifted the entire mood of the industry, then mired in the post-financial crisis recession, pushing it away from the excess of Y2K style towards a more discrete, understated, elegant luxury.

Indeed, unlike other star designers, like Slimane or Tom Ford, who are known for sticking religiously to their signature aesthetic, Phoebe has demonstrated she can channel different vibes that connect with the zeitgeist of the moment. However, with the launch of her label, Phoebe won’t want to alienate the 286,000 Philophiles — many loyal to her Celine look — who are following her on Instagram, as well as the fans who have registered for updates on her company website.

The only hint for now on what we might expect on Monday is the barrage of images that Phoebe released online at the end of September which have been analysed ad infinitum for clues on what her debut collection will look like. The fast paced digital collage reminds me of the moodbooks Phoebe used to leave on the seats at her Celine fashion shows. The only way to look at the new imagery properly is to take screenshots as quickly as possible and then examine them as stills: what you’ll see is a combination of mood photos, white feathers, gold jewellery and black leather on women of many ages and ethnicities.

But Phoebe’s digital approach is also a reflection of something deeper. Most star designers don’t get their own labels because it is very hard to make the economics of a start-up fashion brand work using the traditional luxury business model, rooted in expensive fashion shows and physical stores.

For Phoebe’s new venture to work, she is also going to have to embrace new ways of working. That she has moved to an all-digital launch (no fashion show invitation in sight!) and revealed the first visuals on Instagram demonstrates the most notable thing about Monday’s launch: Phoebe’s new operating model. The approach is (1) a necessity now that she is running a startup; (2) a reflection of the changing times given how and where the fashion conversation takes place; and possibly (3) a realisation that since she is starting her business from scratch, she can do things the way it make sense to her without having to operate by any industry rules or conventions.

During her time at Celine, Phoebe was decidedly anti-digital, refusing to engage with social media and resisting e-commerce until the very end of her tenure. On Monday, we will see Phoebe unleashed — and I for one am excited to see where she takes it from here.

The BoF Podcast

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BoF VOICES 2023 is coming, from November 28th to November 30th, uniting the movers, shakers and trailblazers of the global fashion industry with thought leaders, entrepreneurs and inspiring people shaping the wider world.

In the coming weeks, we will be sharing some of my favourite VOICES talks from the past on The BoF Podcast. This week, we revisit a special conversation with the inspiring model Adut Akech who has appeared on the covers of a plethora of international magazines and walked for some of the biggest names in luxury, from Chanel and Dior to Prada and Valentino.

Adut’s story starts in South Sudan and Kenya, where she was a refugee before relocating with her family to Australia. She came to Oxfordshire for BoF VOICES 2018 and sat down with our editor at large Tim Blanks to share her magical journey into the fashion world.

To register for this year’s BoF VOICES global livestream, click here.

Imran Amed, Founder, CEO and Editor-in-Chief, The Business of Fashion

Plus, here are my other top picks from our analysis on fashion, luxury and beauty:

1. Why Some Luxury Groups Are Doing Better Than Others. The slowdown in demand for high-end brands is hitting the sector unevenly, as seen in the polarised third-quarter results released this week by Hermès, Kering and others.

2. Why Beauty’s Biggest Conglomerates Are Selling Off Their Brands. As strategics like Unilever and L’Oréal divest from once-core lines, a more selective approach to M&A is underway.

3. The DTC Watch Brands With Luxury Ambitions. Timepiece start-ups like Baltic, which went from Kickstarter campaign to producing $50K collector grade watches, and Christopher Ward, who is on track to reach more than $40 million in sales this year, are leveraging collector communities and innovation to take on high luxury watchmaking.

4. The Divine Decadence of Helmut Newton. The life and work of the taboo-busting photographer continue to enthral and scandalise in equal measure, writes Tim Blanks.

5. Case Study | Fashion’s New Playbook for Online Returns. The e-commerce boom may have cooled but online returns rates remain high, and the costs of processing them are more expensive than ever. BoF unpacks how retailers can reduce the costs of returns and protect profit margins, while improving customers’ shopping experience to generate higher sales.

To receive this email in your inbox each Saturday, sign up to The Daily Digest newsletter for agenda-setting intelligence, analysis and advice that you won’t find anywhere else.

Last week, luxury sector bellwether LVMH reported third-quarter growth that was sharply down compared to the first half of the year in its key fashion and leather goods division, sending the group’s stock tumbling by more than 8 percent.

After demand for high-end items held strong during nearly two years of rising interest rates, depressed stock markets and slowing economic growth, the news that the sector’s biggest player, which owns Dior and Louis Vuitton, was now growing at less than 10 percent suggested luxury’s post-pandemic boom was ending.

This week, results luxury firms including Hermès, Kering, Zegna and Moncler confirmed the trend but painted a more polarised picture: blue chip Hermès’ continued to grow by double-digits with sales rising 16 percent in the third quarter, while Gucci and Saint Laurent owner Kering’s sales fell by 9 percent, sending shares to a five-year low.

Puffy coat-maker Moncler’s topline growth also slowed dramatically, from 24 percent in the first half to 7 percent in the third quarter, though a rapid shift away from wholesale skewed that figure. Sales in the group’s own stores rose as much as 18 percent.

At Zegna Group, constant-currency growth at its namesake menswear line slowed dramatically from 18 to 6 percent. Still, strong performance at Thom Browne and adjustments to account for shifting licence agreements helped the group report another quarter of robust organic growth at 11.3 percent.

It’s clear that some luxury groups are doing much better than others. Why? Exposure to different customer segments, some of which are hit harder by the cost-of-living crisis than others, is a big part of the story. But that’s not the only thing in play. Let’s take a look at Hermès and Kering, this week’s winner and loser.

Hermès has gone from strength to strength in recent quarters, so the fact that it’s leading the pack should come as little surprise. A longstanding shortage of sought-after Birkin and Kelly bags continues to encourage customers to spend big bucks across the brand in an effort curry favour with sales associates.

To better supply those eager customers, the brand has reinforced its offer with a panoply of commercially appealing propositions across categories. While the brand still proposes more innovative items in its runway shows, its store buyers have learned to focus their merchandising on options that are ultra-relatable and ultra-recognisable (if still often logo-free): think Kelly fermoirs on shoes, fashion jewellery and mens’ bags; a fine jewellery division generously stocked with the house’s iconic anchor chain motif; and the steady expansion of its cosmetics unit.

But above all, Hermès’ core handbag offer, priced at the top of the market, appeals to customers less likely to shrink their fashion budgets in the face of macroeconomic instability. And even when top clients do pull back on spending, their annual offer of a “quota bag” from Hermès is often the last thing they cut.

Kering faces a different challenge after years of focusing on a more fashion-driven positioning that matched bold aesthetics and logo-heavy branding with prices a notch below key competitors. The group needs to adapt to two simultaneous trends: the “quiet luxury” boom that’s fuelling growth in demand for more discreet, logo-free brands like Zegna, Brunello Cucinelli and LVMH’s Loro Piana, and a macroeconomic climate in which aspirational luxury shoppers are under pressure.

For Kering, strategies for reaching wealthier shoppers — and for reassuring those less wealthy that they’re investing in a piece that won’t go out of style — are now critical.

The challenge has been well-documented at Kering’s flagship Gucci: bold designs like $650 low-top sneakers and $1,000 crossbody satchels were young luxury catnip, but the brand was slow to change up its approach after stagnating sales suggested that interest in previous designer Alessandro Michele’s kitschy vision had topped out.

Under a new CEO, Jean-François Palus, and new designer, Sabato De Sarno, the brand is working to roll out a more broadly relatable fashion vision while also reinforcing its timeless, luxury credentials with expensive-looking, uncontroversial brand campaigns (Ryan Gosling with a heap of classic luggage; Paul Mescal in horsebit loafers). That plan will take time to show results.

The risks of depending too much on younger and less-wealthy luxury consumers were also apparent at Kering’s Saint Laurent, until recently one of the group’s most consistent bright spots. Retail sales fell 4 percent and overall revenue dropped 12 percent in the third-quarter on a comparable basis.

Saint Laurent designer Anthony Vaccarello’s stature as a fashion authority has steadily grown in recent years, but the prices, creativity and clout of the quilted crossbody bags that make up the brand’s commercial engine remain positioned well below the brand’s top luxury rivals: With middle-class and upper-middle class customers increasingly feeling the squeeze, luxury’s remaining spenders aren’t looking for junior Chanel.

THE NEWS IN BRIEF

FASHION, BUSINESS AND THE ECONOMY

Hermes’ third-quarter sales defied the luxury slow down. Third quarter sales at Birkin bag maker Hermès rose briskly, at €3.37 billion ($3.60 billion) up 15.6 percent year-on-year, with the pace of growth slowing only slightly in a show of resilience of its wealthy clientele in spite of economic headwinds.

Kering lags behind luxury peers. Third quarter sales at the luxury French group fell 9 percent indicating the group’s struggle to cope with slowing demand. The drop in North America was particularly pronounced for the Gucci and Saint Laurent owner, with revenues falling 21 percent in the region.

Farfetch’s acquisition of Yoox Net-a-Porter stake gets EU approval. Under the agreement, first announced in August 2022, Richemont would sell a 47.5 percent stake in YNAP to Farfetch, with provisions for a full acquisition in the next three to five years.

Moncler quarterly sales up 7 percent in line with analyst expectations. Thanks to growth in Asia and despite a decline in the Americas, total sales reached €670 million ($705 million) in the July-September period, matching an analyst consensus provided by the company.

New report details the inside story of the Adidas’ Yeezy debacle. A report from the New York Times, citing previously undisclosed internal records and information from former Adidas employees, detailed the extent to which the German sportswear giant sought to appease Ye, formally Kanye West, despite his increasingly combative behaviour.

Timberland owner VF Corp facing second activist push by Legion. Legion has amassed a stake in the Denver-based company and is urging it to divest some brands such as Timberland, the people said, asking not to be identified discussing private information. The size of Legion’s position isn’t clear.

Rivals Temu and Shein shelve US court cases. The truce comes at a time when the global market share battle between the companies heats up. The joint declarations were filed in Chicago and Boston and did not contain details on whether settlements were made.

Puma’s third quarter results showed promise as the company reported a stronger than expected margin. Puma stood by its full-year outlook on Tuesday and reported a stronger than expected third-quarter profit margin, reassuring investors and boosting its shares after a stronger euro dented the German sportswear brand’s quarterly earnings.

Secondhand luxury jewellery marketplaces Worthy and Circa merge. The company created from the merger will be worth more than $100 million and the brands will continue to work under their own banners for now.

UNESCO recommends policies to strengthen the fashion industry in Africa. A report found the value of annual textile exports from the continent at $15.5 billion and said the fashion industry across Africa “is brimming with opportunities.”

Celine’s Hedi Slimane released a surprise women’s show last Friday. The show was released as a video, filmed at the Bibliothèque Nationale in Paris, and featured Summer 2024 looks steeped in his signature blend of grunge and “bon chic bon genre.”

New Paris Design Fair to launch alongside fashion week. The fair, called ”Matter and Shape” has been created by fashion editor Dan Thawley and trade-show executive Mathiew Pinet. It will run alongside Paris Fashion Week and be held in the Tuileries Garden starting February 2024.

Zara owner Intidex has joined forces with US start-up Ambercycle. Intidex will purchase “a significant” portion of recycled polyester from the company. The clothing retailer aims to have 25 percent of its fibres from “next-generation” materials by 2030.

Temu’s triumph over competitor Shein is a double-edged sword. The platform surpasses Shein in the volume of its product offerings at low-prices, however, this aggressive pricing strategy is chipping away at the company’s bottom line.

Kim Kardashian’s shapewear label Skims launched menswear this week. The brand is promoting the range of men’s products such as boxers, briefs, T-shirts, undershirts, tank tops and leggings, with a string of male sports stars including Brazilian footballer Neymar Jr. and NBA player Shai Gilgeous-Alexander.

THE BUSINESS OF BEAUTY

Unilever is selling Dollar Shave Club after 7 years of trying to grow the company. After paying for $1 billion for the shaving brand in in 2016, Dollar Shave Club has been sold to Nexus, which also owns shoemaker Toms.

L’Occitane reported net sales of just over €1 billion in the first half of the fiscal year. L’Occitane International S.A reported net sales of just over €1 billion ($1.13 billion) in the first half of its 2024 fiscal year, an increase of 24.9 percent at constant rates. Skin and body care label Sol de Janeiro saw the biggest gains.

Unilever’s plan to restore market share underwhelms its investors. The company’s shares fell as much as 3.5 percent in London, trading near a one-year low after announcing that it would focus on investing in its top 30 brands.

Brexit blamed for £850 million drop in beauty exports. An Oxford Economics report found beauty exports from the UK to the European Union have fallen by more than £850 million ($1 billion) since the Brexit vote, as customs delays and increased costs put the brakes on orders.

Ulta Beauty to launch smart vending machines in 10 stores across the US. The US retailer has partnered with smart vending machine company SOS for a pilot programme that will allow loyalty card members to collect free beauty samples and serve as dynamic advertising space in Ulta Beauty stores.

Beyoncé announced the name of her new fragrance: Cé Noir. The scent, which has been available for pre-order in the US and Canada exclusively on the singer’s website since July, will begin shipping in November.

PEOPLE

Pitti Immagine Uomo named British designer Steven Stokey-Daley as guest designer. The Liverpool-born designer’s namesake brand, SS Daley, will stage an event at the prestigious bi-annual menswear trade show, which takes place in Italy, at Florence’s Fortezza da Basso, in January.

Puma hires A$AP Rocky as creative director of Formula 1 Partnership. The rapper is set to design a collection to be released at the Las Vegas Grand Prix in November. This marks the first of many licensing deals the rapper will have with Formula 1.

MEDIA AND TECHNOLOGY

Instagram owner Meta sued by over 30 states. The states, which include California and Massachusetts, claim that the social media sites Instagram and Facebook exploit young people for profit and feed them harmful content.

Meta earnings report reveals most profitable quarter in years. The company reported a third-quarter revenue of $34.15 billion, beating the expected $33.56 billion, up 23 percent year-over-year. Results boosted investor confidence after several volatile years for the company as it attempted to expand beyond its core social media products.

Compiled by Yola Mzizi.