Fendi’s Turnaround Plan: More Stores, Products To Build a $500M Brand

Fendi is gunning to become a profitable $500 million fashion house and won’t pin its hopes on a hit handbag, but on a sound business strategy.

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The old New York store is slated to go dark in January; however, so as not to miss out on holiday sales, Fendi said it will open a temporary store on Madison and 64th street in November.

Burke also gave an update on efforts to beef up Fendi’s key subsidiaries, confirming a WWD report that Gianluca Flore, formerly at La Perla, started last week as head of the company’s U.S. operations. There are plans to appoint a new ceo for Japan later this year.

Burke and Toledano declined to target a date for breakeven, or disclose the size of current losses at the company. “The trend is strong, so we still reach the objective [of double-digit operating profitability],” Toledano said.

On the handbag front, Burke cited accelerating sales of its Sellier and Chef bags and the latest style, Vanity, is doing “exceptionally well.” Silvia Venturini Fendi continues to head up design for leather goods, sometimes in tandem with Lagerfeld.

Toledano stressed the need to diversify the range of handbags Fendi has on offer.

“The competition is such that you have to come to the market with a wide offer,” he said.
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