According to people with knowledge of the situation, Tom Ford, the luxury label created by the eponymous former longtime creative director for Gucci, is considering a possible sale.
According to the individuals who asked to remain anonymous because the situation is private, Tom Ford is collaborating on the project with investment bank Goldman Sachs Group Inc.
According to one of the people, a deal may include an option granting any new owner of Tom Ford the right to continue working with the company’s founder after the sale and value the business at several billion dollars.
Tom Ford has not made a final decision and may still decide to maintain his independence.
Tom Ford’s spokesman was not immediately available for comment. A Goldman representative declined to comment.
Spending on Luxury
As inflation takes hold and energy prices rise, luxury brands have been dealing with rising manufacturing and logistics costs. Lockdowns in China, a significant market for high-end purchases, have also slowed growth.
Even though higher-end goods are typically less affected by inflation, especially for US consumers, unless a protracted bear market hits the wealthy, according to Morningstar Research equity analyst David Swartz.
Even with the market downturn, wealthy people are typically in better shape, he said. “The reality is that we’ve been in a bull market until really recently.” “I don’t hear many worries about consumption of luxury goods.”
Ford, an Austin, Texas, native who revitalized Gucci during a ten-year tenure as creative director, launched his own business in 2005, one year after leaving Gucci.
Suits and perfumes
When the business first began, it was a menswear-focused luxury apparel brand. Until the Fall and Winter 2022 collection, when the exclusive rights expire, all of its suits were licensed to and manufactured by recently made-public Ermenegildo Zegna Holditalia SpA, according to Zegna’s annual report. Starting with the upcoming season, Zegna will continue to produce some Tom Ford products.
Along with selling beauty and fragrance products under license from Estee Lauder Cos., Tom Ford also sells eyewear made and distributed by Marcolin SpA. Accessories from the brand, like watches and small leather goods, are also available.
Former Gucci president and CEO Domenico De Sole, who now serves as Ford’s chairman, was one of the company’s first partners.
With the 2009 release of “A Single Man,” which starred Colin Firth and Julianne Moore, Ford made his directorial debut.