Billionaire fashion kings

Happy Monday, fashionistas. This is your Stock Market Rundown for September 9th, 2024. Thanks for tuning in. Let’s kick off our week:

TODAY’S TOP STORY: BOUTIQUE BOOM

The luxury fashion houses of Italy are among the most prestigious in the world, and few can rival the elegance of Dolce & Gabbana. The brand’s aesthetic, a fusion of baroque opulence and Italian glamor, has graced the wardrobes of annoying celebrities from Madonna to the Kardashians. 

Dolce & Gabbana was founded in 1985 by Italian designers Stefano Gabbana and Domenico Dolce. Now billionaires, the two men still control the creative direction of the business; Domenico’s brother Alfonso is CEO.

Despite a few hiccups en route (like a tax evasion kerfuffle), the design duo built a glittering success in the cutthroat world of fashion. Today, Dolce & Gabbana has over 300 boutiques around the world, and recently reported annual revenue of €1.8 billion (US$2 billion), up 17% from the prior year. Impressive result, given the global luxury market has been stumbling like a stiletto with a broken heel.

With its frocks flying off the racks, Dolce & Gabbana is reportedly looking for a capital infusion—via a minority investor or, potentially, an IPO. Given the founders are both now in their 60s, with no direct heirs, succession planning is likely on their minds.

Despite its high-status allure, Dolce & Gabbana isn’t above pulling stunts for attention. Example: it recently released a perfume for dogs, named after Domenico Dolce’s beloved mutt, Fefé. 

Veterinarians gave it thumbs down, but fans of the brand are snapping it up as a collector’s item. Nothing says "luxury" quite like a spritz of sandalwood on your schnauzer.

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SO WHAT ELSE IS GOING ON?

• US bank profits jumped as credit performance improved and expenses stayed under control. Guess it helps that banks no longer give away a toaster when you open a new account.

• US authorities are investigating Chinese e-commerce retailer Shein for selling potentially deadly products. I thought the only danger from Shein was its customers suffocating when their $12 denim jumpsuits shrink in the washing machine from Medium to Extra Small. 

• The days of ninth-graders being more dedicated to their “snap streaks” than their homework are long gone. Now, with TikTok and Instagram sucking up ad dollars, struggling Snapchat is more forgotten than the middle child at Thanksgiving.

• A dollar doesn’t go as far as it used to. Discount retailer Dollar Tree had a crappy quarter due to weak customer demand, sending the stock plummeting. Grim sign for the economy when folks are paring back their spending on duct tape, shampoo, and ramen noodles.

That’s it for today, compadres; let’s circle back later this week. Yours in capitalism, The Axe

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