LVMH’s Pink Shirtmaker, formerly known as Thomas Pink, is reportedly on the market for sale, signaling the challenges the luxury menswear retailer has faced in the wake of the COVID-19 pandemic. While an official statement from LVMH is yet to be released, the struggles of Pink Shirtmaker in 2020 have been evident following the closure of its flagship stores in London, as well as outlets in strategic locations like Heathrow Airport and Madison Avenue in New York.
The shift towards remote work in the financial sector has significantly impacted the demand for formal office wear, leading to a decline in sales for Pink Shirtmaker. As a result, potential buyers have been granted access to financial data as part of the sale process. The exclusion of existing stock in the sale presents both challenges and opportunities for interested parties, with a revenue stream from a partnership with Victoria’s Secret helping to sustain the business during difficult times.
Since being acquired by LVMH, Pink Shirtmaker underwent a rebranding to position itself as a more premium label. However, the elevated prices for core shirts ranging from £120 to £160 had a negative effect on profitability. Financial reports for Thomas Pink Limited indicated a 20% increase in operating losses to £23.5 million in the year ending December 2018, with revenue decreasing from £15.4 million to £12.2 million over the same period.
Despite these financial setbacks, Pink Shirtmaker remains optimistic about its future prospects. The departure of the brand’s chief operating officer, Steve Price, to join The Shirt Society in a product development role signifies a shifting landscape within the retail sector. Innovation and adaptability have become key factors in navigating uncertainties, a point underscored by the evolving nature of the industry.
For those interested in reading more about the challenges and changes facing luxury menswear retailer Pink Shirtmaker, here are two relevant links to further explore:
1. Financial Times article on the sale of Pink Shirtmaker
2. BBC News report on the impact of the pandemic on luxury retailers
