The economy, an uncertain geopolitical landscape and the U.S. presidential election. These three factors could impact consumer spending and post challenges to sportswear manufacturers as they enter 2024. To weather whatever is thrown their way this year, sportswear firms are fortifying their businesses with new categories, freestanding stores and improved e-commerce sites.
Leaders of major sportswear brands say they expect continued uncertainty in 2024, but are focused on areas that they can control. Several have sought out new freestanding stores around the country, others are expanding their international businesses and strengthening their sustainability efforts.
“Election years always present challenges, with a divided country and so many global issues arising,” said Stacey Bendet, chief executive officer and creative director of Alice + Olivia. “This year we are also watching for financial challenges with elevated interest rates, inflation and a tumultuous market that can affect people’s spending.”
Alice + Olivia is seeing a lot of opportunity in new markets. “Since the pandemic, retail has boomed in smaller cities, and [we] have new stores in Miami, San Diego, Nashville and Scottsdale,” said Bendet. She also noted the brand is launching new collaborations with “amazing artists” and will continue the growth of its digital selling and social commerce networks.
Jonny Saven, CEO of L’Agence, discussed some of the challenges facing the company this year and how they’re dealing with them. “Further consolidation within the retailer sector means making sure you can win with the winners. Continue to build upon strong relationships, and always win with compelling product first. The customer is looking for value, value that comes as a combination of quality, wearability and that inspires confidence and comfort at all times. Especially with the slowdown at the luxury designer level, L’Agence becomes more and more relevant to the premium customer,” said Saven.
He said the biggest opportunities for the brand his year include retail expansion. “We are excited about our retail footprint growth in top markets, which is our way of being able to tell the full story of the brand.”
L’Agence has stores on Madison Avenue in Manhattan, Beverly Drive in Beverly Hills, Melrose Place and Malibu, and will open a showroom and store in the Marais in Paris in April and Seoul, Korea, in July.
“This goes hand in hand with the new categories we are winning with in the market, such as swimwear and outerwear. In addition, using AI in responsible ways opens up new opportunities in the areas of digital and inventory management,” said Saven.
Deirdre Quinn, cofounder and CEO of Lafayette 148, said a key challenge for the designer brand is to get their collections more visibility in 2024.
“I used to say this brand was our customer’s secret weapon. As the brand has continued to grow in the designer luxury space for the past few years, our strategy has shifted. We’re exploring new ways to get more visibility on the collections and launches while being smart, conservative and thoughtful in our approach to spend,” said Quinn.
According to Quinn, the biggest opportunity for Lafayette 148 in the year ahead is continuing to build the brand after a year of successful firsts. Last year it launched its first celebrity brand ambassador campaign with Maggie Gyllenhaal, partnered with costume designer Sophie de Rakoff on custom suiting for “The Morning Show,” and sponsored the conservation of Giulia Lama’s masterpiece with Save Venice.
“Our ability to expand our community of customers will continue to grow in 2024 through strategic business opportunities, best in class retail partners and innovative distribution networks,” said Quinn.
She said creative director Emily Smith will collaborate on a renowned artist capsule collection and exhibition opening in the first quarter, followed by a celebrity stylist partnership that reimagines one of their brand icons in the second quarter.
Dinesh Tandon, global CEO of Theory, said the biggest challenge the company faces is continuing to deliver value to their customers.
“Being able to deliver outstanding value to our customers is constantly top of mind,” said Tandon. “We have fought to maintain, and at times even reduce, our average retail prices over the past few years through strategic long-term partnerships with our top fabric mills in Italy and Japan and through improved efficiency in our supply chain,” said Tandon.
He said their Atelier facilities in New York’s Meatpacking District allow the design and product development teams to keep perfecting and innovating their products.
As far as the biggest opportunities he sees this year, Tandon said, “We have a solid foundation and as we are part of Fast Retailing, one of the largest retail groups in the world, we have access to resources to accelerate our expansion in the U.S. as well as international markets, specifically Europe and China.”
He said digital growth, providing omnichannel convenience for customers, is another focus in the upcoming year.
“Additionally, we aim to continue to make significant strides in our sustainability endeavors, Theory for Good,” said Tandon. “As a company we are committed to creating sustainable solutions for our products, advancing our community, and reducing our impact on the planet. We’re operating a global business while keeping environmental impact in mind, reducing emissions through conscious choices. We’re creating unique products of the highest quality while reducing waste and increasing circularity through our increased usage of recycled materials. We have committed to reaching 100 percent traceability on our signature fabrics by 2025,” said Tandon.
Ramy Sharp, founder and creative director of Ramy Brook, agreed with Bendet that the economy has a definite impact on people’s spending habits.
“From the state of the economy to fast fashion and new trends, the industry is ever-changing and can shift on the drop of a dime. We as a company need to be prepared to adapt and pivot to the uncertainty, similar to what we did during the pandemic,” said Sharp.
As for what she sees as the biggest challenges for the year ahead, she said, “We need to keep up with the trends while staying true to our brand DNA through our innovative designs, quality of product and bold marketing.”
Strengthening the lifestyle aspects of the Ramy Brook brand is a key opportunity for 2024. “Ramy Brook is a lifestyle brand and we want to fulfill it all. Our customer comes to us for a full look and we want to make sure we have her covered from head to toe. We’re planning to expand our accessories business with more jewelry and shoes, as well as go deeper into our swimwear and sweater categories. We also have some exciting collaborations in the works that will touch brand new categories for us,” said Sharp.
Jane Siskin, CEO of Cinq à Sept, is focused on the areas that she can control and is looking for major growth in 2024.
“I think we can still expect a lot of uncertainty in 2024 — especially as it relates to consumer confidence in a weakened economy and uncertain political and geopolitical landscape,” said Siskin. “That said, I’m proud of the strong performance we’ve seen across all channels this year [2023] and for 2024, we remain hyper-focused on the elements of the business that are within our control and are committed to thoughtful strategic growth and creative output that serves our customer in a meaningful way.”
After opening their first brick-and-mortar store at 108 Wooster Street in New York’s SoHo, Siskin spoke about what she sees as the major opportunities for the brand in 2024. “Despite a challenging landscape, we continue to see major growth opportunities for Cinq à Sept in 2024. We’re expanding our retail footprint through brick-and-mortar shops in key U.S. markets, we’re exploring new categories, and are expanding our international presence rapidly,” said Siskin.
Siskin believes it’s imperative to meet their customer wherever she is and to broaden the customer base. “We look forward to connecting new audiences to our brand as we enter a new chapter in 2024,” said Siskin.
“With continued economic uncertainty, our challenge will be to find new ways to create unique experiences for our customers,” said Desiree Thomas, CEO of Ba&sh North America. “We meet our shopper wherever they are — online or in-store — and, in addition to offering high-quality, timeless wardrobe staples, we will continue to focus on customizing each interaction through personalized events and using data to determine the best product for each customer.”
Discussing what she sees as the biggest opportunities for Ba&sh in the coming year, she said, “We’re focused on providing a highly personalized customer experience, coupled with a continued investment in key iconic pieces that serve as wardrobe stapes, no matter the occasion in her life.”
Asked what she views as the biggest challenges facing LoveShackFancy in 2024, Nancy Hessell Cohen, founder and creative director, said, “We live — and LoveShackFancy is based on — a very simple premise: to bring lightness and beauty to our customers’ lives. During these challenging times my hope is that we continue to do just that and we will always remain flexible and responsive to what our customers need to experience that air of love and optimism.”
As for the biggest opportunities, Cohen said, “My goal is to transcend trends to be a true state of mind. LoveShackFancy is for anyone who believes in magic, romance, love, femininity and celebration. While the silhouettes may evolve and change, the overall mindset will always remain. LoveShackFancy is a feeling. It’s about creating your own beautiful world and surrounding yourself with what makes you feel confident, feminine and free.”
She said considering the brand was founded on celebration, they will continue to deliver pieces for every milestone in their customers’ lives, from babies to grandmas, holidays, prom, weddings, etc. “Additionally, we are expanding our beauty line as we love that beauty is ageless, genderless, and size-less. And it’s for everyone, at a more accessible price point,” said Cohen.
“Lastly, while we don’t follow trends, we do respond to what our customers want, via our constant online and in-store interactions with our community. For example, this year we began offering a beautiful collection of suits, pants, and blazers and will elaborate on these categories in the future,” said Cohen.
