Become one of the top 5 luxury brands in the world: here are the objectives, and the revenues of the brand presented by Tom Ford
For some years, the Texan stylist has regained the notoriety positions reached when he led Gucci, at the turn of the Millennium. He did it, precisely, with his own brand, through a skilful mix of innovation, unconventionality and mystery.
Today, the real question, beyond image and presen- tialism (or noisy absences), concerns the concrete value of Tom Ford‘s sales.
According to market sources, the brand has closed 2017 with retail revenues of about 2 billion dollars (1.6 billion euro). This is a figure that considers all the business branches.
To make the data comparable, however, some clarifications are needed.
Firstly, it includes the revenues of licensees to whom Ford has allowed the use of its brand (mainly perfumes and eyewear).
Furthermore, this is a retail value, that is calculated with the final prices at which the products are sold in stores (therefore, higher than the price they are sold by the company to distribution).
For an approximate calculation of the revenues generated by Ford and licensees the mark up retail (often close to 100%) should be removed.
To get to the designer’s accounts, a percentage of the royalties on the licenses should be estimated, to be added to the direct value of the clothing business.
In short, it is possible to imagine that Tom Ford‘s turnover could be somewhere between 300 and 500 million dollars. Not bad, not really bad.
Certainly, to date, the brand of the Texan designer counts 49 stores in direct management and 77 shop-in-shop, for an offer that includes the male and female ready-to-wear, accessories, the eyewear (licensed to Marcolin), cosmetics and fragrances (licensed to Estée Lauder Companies).
Success also announced for the new perfume Fucking Fabulous, which is surpassing the designer’s most optimistic expectations, as he himself has been able to say on several occasions.
Since the launch of the women’s line, in 2010, Tom Ford has opted for different presentation formats, from the video entrusted to the popularity of Lady Gaga, to the fashion shows in Los Angeles, to the formula see now-buy now. Today, womenswear is worth 30% of the brand’s turnover.
Tom Ford, in short, will not have to worry about the future: he is in fact the majority shareholder of Tom Ford International, with 63.75% of the shares (the remaining part is headed by Domenico De Sole, current chairman Tom Ford International and CEO of Gucci Group from 1994 to 2004, years in which Tom Ford was the creative director of the Tuscan fashion house, with 11.25%, while the remaining 25% is owned by Gildo Zegna, CEO of Ermenegildo Zegna , and Américo Amorim Group).