WGSN, the renowned fashion, beauty, and lifestyle trends service owned by Ascential, is set to be sold following a thorough strategic review conducted by the company. Ascential, which also owns the prestigious Cannes Lions, revealed this decision as it delivered a strong trading update. In an effort to optimize its organizational and capital structure, Ascential has made the choice to pursue the sale of WGSN. The proceeds generated from the sale will be distributed amongst shareholders, while the remaining capital will be utilized to fuel growth opportunities for the group’s diverse range of businesses.
Almost two decades ago, WGSN was acquired by EMAP, the predecessor of Ascential, for £140 million. This notable purchase was followed by the acquisition of American competitor Stylesight ten years ago. The merging of these two companies propelled WGSN to become the dominant force in fashion trend forecasting. Ascential has additional plans in motion, which involve the separation of its global Digital Commerce assets into an independent company, listed in the United States. On the other hand, the Events businesses will continue their operations under a UK listing as Ascential plc. The current CEO of Ascential, Duncan Painter, will take on the role of CEO for the listed Digital Commerce business, while Philip Thomas, the CEO of Ascential Intelligence and Events, will assume the position of CEO for Ascential plc.
Ascential’s trading performance has been impressive, with double-digit revenue growth observed across all four segments in 2022. The total revenue for the year is projected to reach at least £520 million, up from £349 million in 2021. Additionally, the adjusted EBITDA is expected to be at least £118 million, marking an increase from £89 million. The Digital Commerce segment experienced robust revenue growth, driven by its cutting-edge technologies and services that help brands enhance their digital commerce performance. Product Design also achieved exceptional results with double-digit revenue growth and record-breaking customer retention rates. The Marketing segment witnessed significant growth, bolstered by the return of the Cannes Lions International Festival of Creativity and double-digit growth from WARC’s subscription business.
CEO Duncan Painter expressed his satisfaction with the company’s performance and emphasized the value proposition inherent in each business segment. He highlighted the exciting growth opportunities within the digital commerce marketplaces and highlighted the high levels of customer engagement achieved by the events businesses. Painter also lauded WGSN as a global leader in providing trends and insights for product design, describing it as an outstanding and highly appealing business for prospective owners who can further drive its growth trajectory.
The strategic review and subsequent decision to sell WGSN underscore Ascential’s dedication to optimizing its business structure and maximizing shareholder value. This move will not only yield substantial returns for shareholders but also unlock growth potential for the group’s businesses, enabling them to continue flourishing and delivering value to their customers. The sale of WGSN presents an unprecedented opportunity for new owners to take the business to new heights and capitalize on its position as a frontrunner in fashion, beauty, and lifestyle trends.
Useful Links:
1. WGSN Official Website
2. Cannes Lions Official Website
