McQueen & McCartney on their way up

Monday, 03 March 2008
Alexander McQueen and Stella McCartney managed to turn things around. Both companies made profit over FY2007 and reached their targets, set by director Robert Polet in 2004. This was announced by the mother company of Gucci Group, PPR earlier this week. Even though PPR didn't published any numbers of the individual brands, we are led to believe the Group's profit tripled up to GBP 23,68 million. Alongside McQueen and McCartney, the Gucci Group represents Boucheron, Balencaga and Sergio Rossi. In October 2007 the Group announced Stella McCartney made a minor margin since 2006.

Both luxury brands used different strategies to work on a brighter looking future. Stella McCartney focused on expansion and increased its brand exposure. The label initially collaborated with Hennes & Mauritz in 2005, after which it worked together with Adidas and LeSportsac, Target in Australia, de Lane Crawford Joyce Group and Bendon lingerie. McCartney's perfume and beauty range are doing well too, which the Gucci Group is looking to sell to L'Oréal.

Alexander McQueen mainly concentrated on its own prêt-à-porter and accessory range. Jonathan Akeroyed, CEO of McQueen said the sale of bags doubled over the past year. Further more the brand set up licensee agreements with Puma and Samsonite. The future of McQ, a denim range that launched in 2006, is looking very positive. The director is expecting to realise a profit of GBP 143,52 million within the next five years.

Image: Alexander McQueen SS08

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