1976 Lamborghini Countach LP 400 "Periscopio"

Welcome to the 24th edition of the Maximalist! Dive into the ultimate guide, filled with insider insights into the world of fashion, art, real estate, travel, jewelry, and horology.

The world of luxury is never boring, and this week is no exception. Let’s dive in!

Markets

On this week’s agenda:

1. Selective Resilience: Two Rolex Models Defy the Downtrend in Luxury Watch Market

2. Hermès Defies Luxury Market Downturn with Strong Sales Growth

3. Rare 1976 Lamborghini Countach LP 400 "Periscopio" to Be Auctioned at RM Sotheby’s

4. Usher's Super Bowl LVIII Halftime Show: A Wardrobe to Remember

5. Tod's Going Private in Partnership with L Catterton

6. Tommy Hilfiger's Fashion Renaissance at New York Fashion Week

7. Kering to Withdraw Brands from Farfetch Following Coupang Acquisition

Selective Resilience: Two Rolex Models Defy the Downtrend in Luxury Watch Market

Only two used Rolex models managed to beat the downward-trending prices in the luxury watch market this past year. Amidst a broader search for value, the Rolex GMT Master II, affectionately dubbed the “Pepsi” for its distinctive blue and red ceramic bezel, saw a price increase of about 5% over the last year, approximately $20,000. This model, along with the reference 69173 Lady-Datejust, which combines steel and gold and rose by about 1% to $4,200, stood out for their resilience in a generally falling market.

The Bloomberg Subdial Watch Index, which monitors the 50 most traded luxury watches on the secondary market, noted an overall decline of about 7% over the past year.

The Rolex GMT Master II "Pepsi" model, developed in the 1950s for Pan-American Airways pilots, allows for easy adjustment of the hour hand to different time zones without halting the timekeeping function. Its popularity and scarcity have led to long waitlists at authorized dealers, fueling speculation about its potential discontinuation in Rolex's 2024 catalog. However, no concrete evidence supports these rumors, and Rolex has not commented on its production plans.

Comparatively, the "Pepsi" model has outperformed the "Batman," a similar version with a black and blue bezel. Despite minor differences, such as the bezel color and bracelet style, the "Pepsi" remains more sought-after, with its price at retail in Switzerland listed significantly higher than the "Batman."

The Lady-Datejust 69173, notable for being the only model in the index specifically targeting women and the most affordable option, has shown remarkable stability in its value. This trend contrasts with the sharp price declines seen in trophy models from other prestigious brands since April 2022, highlighting the unique dynamics within the luxury watch market.

Hermès Defies Luxury Market Downturn with Strong Sales Growth

In a remarkable display of resilience, Hermès International SCA experienced a significant surge in sales towards the end of last year, outperforming expectations amidst a broader slowdown in the luxury goods sector. The renowned maker of the coveted Birkin bags reported a 17.5% increase in fourth-quarter revenue at constant exchange rates, surpassing analysts' projections of around 14%. This surge led to an early rise in shares by up to 4.9% in Paris, marking a 13% increase for the year and eclipsing the performance of competitors like LVMH and Kering SA.

Hermès, known for its exclusive handbags and luxurious silk scarves, continues to attract affluent customers despite a general cooling in luxury product demand post-pandemic. The company's success spans across all its main divisions, each growing by at least 10%.

During a press briefing, Hermès Executive Chairman Axel Dumas announced plans for an average price increase of 8%–9% across products in 2024, underscoring the brand's strong market position even as the luxury sector becomes more "polarized." The company also declared an exceptional dividend of €10 per share, reflecting its robust financial health.

The company's operating income for the year reached $6.1 billion, while sales touched $14 billion, exceeding analyst expectations. Notably, sales growth was particularly strong in Japan and the Americas, with the Asia-Pacific region, excluding Japan, showing the slowest growth. Despite observing reduced foot traffic in Chinese shopping malls during his last visit in the fourth quarter, Dumas noted that this did not impact Hermès's sales performance.

The results from Hermès contrast with the mixed outcomes seen across the luxury industry, with some brands like LVMH and Richemont's Cartier demonstrating resilience while others, including Burberry Group Plc and Kering's Gucci, facing challenges. Hermès's ability to thrive in a fluctuating market highlights its enduring appeal and strategic pricing power.

Rare 1976 Lamborghini Countach LP 400 "Periscopio" to Be Auctioned at RM Sotheby’s

A highly sought-after 1976 Lamborghini Countach LP 400 "Periscopio" is set to go under the hammer, with expectations of fetching between $1,100,000 and $1,400,000 USD. This exceptional vehicle stands out with its original "Blu Tahiti" color, embodying one of Lamborghini's most iconic designs with its distinctive wedge shape. To date, only three individuals have owned this car.

The Countach underwent a comprehensive restoration by its second owner, who then meticulously stored it for two decades in a climate-controlled environment, ensuring its preservation through draining all fluids. Later, the Lamborghini was meticulously revived by a Lamborghini specialist in Toronto. This car boasts a rich pedigree, having been showcased at prestigious events such as the 2013 Pebble Beach Concours d’Elegance, where it clinched an award, and featured on popular shows like Jerry Seinfeld’s “Comedians in Cars Getting Coffee” and “Jay Leno’s Garage.”

Maintaining its authenticity, the vehicle comes with its original engine, although it has seen updates such as a new biscuit-colored interior, modern air conditioning, and external rearview mirrors for enhanced functionality. This Countach delivers 375 horsepower and is powered by a 3.9-liter V-12 engine positioned mid-rear.

The upcoming auction by RM Sotheby’s in Miami presents a rare opportunity for collectors to own a piece of automotive history, with this 1976 Lamborghini Countach LP 400 "Periscopio" promising to be a highlight. Interested parties can view detailed images of the car in the provided gallery.

Usher's Super Bowl LVIII Halftime Show: A Wardrobe to Remember

At the Super Bowl LVIII Halftime Show, Usher's wardrobe was as electrifying as his performance, showcasing custom pieces that reflected his iconic style and the event's significance. He kicked off in custom Air Jordan IV "Chrome" sneakers, a collaboration with Dominic “The Surgeon” Ciambrone, featuring chrome details and royal blue accents, symbolizing Usher's identity and flair. Transitioning to a high point, Usher donned a futuristic, crystalized Off-White outfit, a collaboration with Ib Kamara, adorned with over 394,000 crystals, embodying empowerment and Usher's vision.

His homage to roller skating came alive with Flipper’s Quadz skates, a high-fashion take designed with Liberty Ross, matching his Off-White attire. Opening the show, Usher sparkled in a custom Dolce & Gabbana outfit, a jeweled ensemble that paid tribute to music legends and showcased Usher's blend of showmanship and Las Vegas glamour. Usher's wardrobe for the night was a testament to his status as a fashion icon, perfectly complementing his electrifying Super Bowl performance.

Tod's Going Private in Partnership with L Catterton

Tod's just announced its' significant partnership with L Catterton, L private equity firm backed by LVMH. This marks the first of many pivotal steps in Tod's strategy to delist from the Italian Stock Exchange. This collaboration aims to privatize Tod's, offering L Catterton a 36% stake at 43 euros per share, valuing the company at approximately 1.4 billion euros. This development comes after a previous unsuccessful attempt by Tod's founders, the Della Valle family, to take the company private in 2022.

The Della Valle family, which currently holds a 64.5% stake in Tod's, has been keen on restructuring the company to better manage its iconic brands, including the renowned Gommino loafers, Roger Vivier, Fay, and Hogan. Despite the setback in 2022, where their offer did not meet the required threshold, the family remains committed to Tod's future growth. Diego Della Valle, CEO, and his brother Andrea will retain a majority share of 54%, with Diego tendering a 10.45% stake to L Catterton.

This move is seen as a strategic pivot towards enhancing Tod's operational flexibility and decision-making processes, aiming for accelerated growth and consolidation in the luxury market. The partnership with L Catterton, a venture that combines the strengths of Catterton, LVMH, and Groupe Arnault, signifies a robust vote of confidence in Tod's potential. It also reinforces the longstanding friendship between the Arnault and Della Valle families.

The decision to delist is framed as a strategic choice to navigate the luxury market's challenges more adeptly, benefiting from reduced management and listing costs. This transition is expected to empower Tod's to pursue its objectives within a more adaptable and responsive organizational framework.

Amidst these strategic shifts, Tod's has also welcomed Matteo Tamburini as the new creative director, tasked with leading both womenswear and menswear. His appointment follows the departure of Walter Chiapponi and is part of Tod's broader efforts to rejuvenate its brand and product offerings. Tamburini's first collection, eagerly anticipated, will be unveiled at Milan Fashion Week, signaling a new creative direction for the company.

The Tod's Group has shown resilience and growth, reporting a revenue increase of 11.9% year-over-year for the fiscal year 2023, totaling 1.13 billion euros. This partnership with L Catterton, alongside strategic leadership and creative changes, marks a new chapter for Tod's, aiming to strengthen its position in the global luxury market and chart a course for future success.

Tommy Hilfiger's Fashion Renaissance at New York Fashion Week

After a two-year hiatus, Tommy Hilfiger made a triumphant return to New York Fashion Week, signaling a shift from streetwear to a more refined, "quiet luxury" style. Emphasizing the allure of accessible luxury, Hilfiger showcased a collection that marries classic American preppy with contemporary oversized proportions. The event, held at the iconic Oyster Bar at Grand Central Station, marked a significant moment for the brand, known for its deep roots in popular culture and youth fashion. With Ralph Lauren absent and other big names like Calvin Klein and Marc Jacobs on the sidelines, Hilfiger seized the opportunity to spotlight his brand at NYFW.

The collection featured timeless pieces such as chinos, cable knit sweaters, and wool blazers, all updated with modern twists like wide trousers and exaggerated collars. Baseball caps emerged as a must-have accessory, symbolizing the fusion of casual and formal wear. Hilfiger's strategy also includes a return to traditional sales cycles, moving away from the "see now, buy now" model, while leveraging modern celebrities' influence to attract a broad audience. This approach not only reaffirms Hilfiger's status in the fashion industry but also showcases his knack for adapting to changing trends while staying true to the brand's heritage.

Kering to Withdraw Brands from Farfetch Following Coupang Acquisition

Kering, the luxury conglomerate, is set to remove its brands from Farfetch, signaling a strategic shift after the online platform's acquisition by Coupang. This move will see Kering brands only available through third-party retailers on Farfetch, marking a significant change in their online retail strategy.

Jean-Marc Duplaix, Kering's Deputy CEO responsible for operations and finance, emphasized that Farfetch has never been a key player for Kering, contributing minimally to its e-commerce revenue. He highlighted that e-commerce represents about 12% of Kering's total revenue in 2023, a figure that has seen a decline due to reduced spending by aspirational consumers, affecting online sales more than physical stores.

Duplaix's comments came during a briefing at Kering's headquarters, where he clarified the company's position on its relationship with Farfetch, stating, "It is not a strategic partner for us." This announcement follows closely on the heels of The Neiman Marcus Group's decision to end its partnership with Farfetch, indicating a trend of luxury brands reevaluating their online retail channels.

The departure of Kering from Farfetch is part of a broader industry movement, with Compagnie Financière Richemont also severing ties with Farfetch shortly after its sale to Coupang. These shifts suggest a reorientation of luxury retail strategies in the digital space, with companies like Kering and Richemont looking beyond traditional e-commerce platforms to reach their clientele.

Coupang's recent acquisition of Farfetch has led to a refocusing of the platform's mission, with Coupang’s founder and CEO, Bom Kim, expressing a commitment to enhancing the luxury customer experience online. Kim's vision for Farfetch involves a return to its roots, connecting customers with a curated selection of boutiques, curators, and brands in a premium online environment.

As the luxury retail landscape continues to evolve, the decisions by Kering and other luxury groups to adjust their e-commerce strategies reflect a broader industry trend towards more controlled and brand-centric online experiences.

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