Trussardi changes strategy and redefines shareholding
today Mar 17, 2016
Trussardi is undergoing a significant repositioning towards the accessible luxury segment. It has also reorganised its operations and revised its shareholder structure. Until now the Italian fashion label was owned by the three great-grandchildren of founder Dante Trussardi: Beatrice, Gaia, the brand's Creative Director since 2013, and Tomaso Trussardi, as well as by their mother Maria Luisa Gavazzeni, the company's President. Each of them held a 25% stake in the capital of Finos Ltd., the brand's holding company.
In an interview to the press, Tomaso Trussardi, who is also the label's CEO, announced he "has acquired another 25% stake from his sister Beatrice, and now holds 50% of the stock." The value of the transaction was not revealed.
Beatrice is retiring from the fashion business, but will continue to be in charge of the companies that manage the family's property assets, as well as of the Nicola Trussardi Foundation, dedicated to art and cultural projects.
By June 2016 the label will also go ahead with a 15% share capital increase.
In a press release, the company also announced the setting up of a five-year plan devised to reposition the brand in the accessible luxury segment. The new strategy is going hand in hand with a 90% overhaul in line management, as well as an in-depth restructuring of the multi-brand sales channel, which has become more selective. The same occurred among mono-brand stores with, crucially, the closing down of the less profitable shops.
From the second half of the year, a new store concept featuring lighter colours will be introduced in Trussardi flagship stores and in the Trussardi Jeans retail brand, which will be refreshed, while new openings are planned for 2018.
This radical strategic change has led the label to rationalise its range, cutting back from three to two lines. The main focus will be the Trussardi line, featuring an 'Elegantly cool' style, and the younger Trussardi Jeans line, "characterised by a strong streetwear look." Given this approach, the mass distribution line Tru Trussardi will be terminated, its last collection being Spring/Summer 2016.
At the same time, prices will be significantly lowered, in order to offer "excellent value for money", while leather goods will be relaunched with the creation of "iconic new handbags." Accessories are currently generating one sixth of total revenue, i.e. approximately €23 million.
For 2015, Trussardi is expecting a revenue of €150 million, in line with that of 2014. The objective is to reach €250 million in four years, the label stated, denying that is is looking for new partners. For the time being it does not wish to open up its shareholding.
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