John Mayer Partners with Audemars Piguet for New Royal Oak Perpetual Calendar

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Welcome to the 28th 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. John Mayer Partners with Audemars Piguet for New Royal Oak Perpetual Calendar

2. Frasers Group to Cease Operations of Matches Fashion Shortly After Acquisition

3. The Prada Group's Overwhelming Performance in 2023

4. Noma's Enchanting Return to Kyoto: A Culinary Residency to Remember

5. Equinox Secures $1.8 Billion Refinancing to Overcome Pandemic-Induced Financial Strain

6. Manhattan's Luxury Real Estate Market Sees Dip in New Development Sales

John Mayer Partners with Audemars Piguet for New Royal Oak Perpetual Calendar

Audemars Piguet, in collaboration with musician John Mayer, has unveiled a masterpiece that resonates with both watch enthusiasts and music lovers alike: the Royal Oak Perpetual Calendar John Mayer Limited Edition. This exquisite timepiece, limited to just 200 pieces and priced at $180,700, is a testament to the fusion of artistic creativity and horological precision. The watch is powered by the Caliber 5134 and crafted in white gold with a mesmerizing "Crystal Sky" dial.

John Mayer, now holding the title of "Creative Conduit" for Audemars Piguet, has long been associated with the brand, his collection reflecting a deep appreciation for the Royal Oak's design and mechanical ingenuity. This collaboration brings to life Mayer's vision of the ultimate Royal Oak Perpetual Calendar, blending the watch's iconic design with a unique dial that captures the cosmic allure of a starlit sky.

The "Crystal Sky" dial, a novel motif for Audemars Piguet, showcases a brass dial plate precision-stamped by an electroformed die, resulting in a dial that plays with light and shadow in an ever-changing display. This design choice not only pays homage to the Royal Oak's heritage but also introduces a fresh perspective on its aesthetic, making it a fitting tribute to the legacy of the Calibre 5134 movement.

This launch also signifies a poignant moment for Audemars Piguet as it bids farewell to the Calibre 5134, a movement that has played a pivotal role in the brand's success. The Royal Oak Perpetual Calendar John Mayer Limited Edition thus stands as a milestone, encapsulating the essence of Audemars Piguet's innovation and Mayer's artistic vision.

Buffett vs Banksy: The surprising winner

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Past performance is not indicative of future returns, investing involves risk. See disclosures masterworks.com/cd.

Frasers Group to Cease Operations of Matches Fashion Shortly After Acquisition

In a recent development that has left luxury fashion enthusiasts disheartened, the Frasers Group has announced its decision to discontinue the operations of the luxury online retailer Matches. This decision comes just two months following the acquisition of Matches by Frasers Group, signaling a swift end to the retailer's operations under its new ownership.

The acquisition, which took place in December for a sum of £52 million, was part of Frasers Group's strategy to bolster its presence in the luxury market. Despite the initial optimism, the conglomerate has deemed the turnaround of Matches as unfeasible, citing the need for extensive restructuring and the substantial financial investment required as beyond what it considers viable.

Frasers Group, in a statement to the London Stock Exchange, highlighted the efforts made by the Matches management team to stabilize the business. However, the challenges proved too significant, leading to the decision to place the Matches group into administration. Frasers Group reaffirmed its commitment to the luxury market and its brand partners despite this setback.

The closure of Matches marks a notable shift in Frasers Group's luxury retail strategy. The group, which also owns the online retailer Flannels and several other fashion brands, had hoped to leverage its acquisition of Matches to enhance its luxury offerings. CEO Michael Murray had expressed confidence in the potential for synergies and profitable growth for Matches within Frasers Group's ecosystem.

Matches, which transitioned from a physical store in London to an online platform in 2007, had established itself as a leading destination for luxury fashion, featuring hundreds of high-end brands. However, the retailer, like many of its competitors, faced significant challenges in the wake of the pandemic. The changing landscape, characterized by increased operational costs, the pressure to offer discounts, and competition from luxury brands developing their e-commerce capabilities, has impacted the viability of online luxury retailers.

The decision to shut down Matches reflects the broader difficulties faced by the luxury e-commerce sector and underscores the complexities of revitalizing struggling retail operations in a rapidly evolving market environment.

The Prada Group's Overwhelming Performance in 2023

In 2023, the Prada Group, a titan in the luxury fashion industry, reported an impressive financial performance, showcasing significant growth across its brands, particularly Miu Miu, and regions, despite the challenging global economic landscape. The group's strategic initiatives and the enduring appeal of its brands have propelled it to new heights, distinguishing it from its competitors in the luxury market.

The Prada Group's revenues soared by 13% to reach €4.72 billion, with net profits experiencing a remarkable 44.3% increase to €671 million. This growth, amounting to €4.2 billion, was catalyzed by a 12% rise in retail sales and an even more impressive 17% increase in Q4 (surpassing the anticipated 14%). Driven by the brand's popular cardigans and ballet flats that ignited a librarian-chic look, Miu Miu’s sales skyrocketed by 58% throughout the year and an astonishing 82% in the fourth quarter.

The Asia Pacific region led the charge with a 17% increase in retail sales, reaching €1.44 billion, followed by Europe with a 10% rise to €1.31 billion. Japan, in particular, posted a 31% jump in sales to €484 million, attributed mainly to local customers and an uptick in tourist spending. However, the Americas experienced a slight 2% decline in sales, a deviation from the overall positive trend observed in other markets.

The Prada Group's success stands in stark contrast to the modest or declining performances of some of its luxury counterparts. Lanvin Group reported a modest 1% year-over-year increase, Kering saw a 4% dip in revenues, and Burberry issued an early profit warning. This divergence highlights the Prada Group's resilience and the effectiveness of its brand strategy, positioning it alongside other luxury giants like LVMH, Richemont, and Hermès, which have also navigated the economic headwinds successfully.

Under the leadership of CEO Andrea Guerra, the Prada Group has focused on driving brand desirability and retail excellence. The group's commitment to innovation, dynamism, and flexibility, coupled with strategic product, communication, and retail initiatives, has fueled its growth. Looking ahead to 2024, the group aims to continue its trajectory of solid, sustainable, above-market growth, despite the high comparison base set in 2023 and ongoing macro and geopolitical uncertainties.

Noma's Enchanting Return to Kyoto: A Culinary Residency to Remember

Last spring, the culinary world buzzed with excitement over Noma's ten-week residency in Kyoto, a move many thought would be the celebrated restaurant's final bow before a creative hiatus. Yet, in a delightful twist, Noma has announced its return to Kyoto for another ten-week culinary adventure this autumn, under the guidance of the visionary Danish chef René Redzepi.

Noma, a three-Michelin-starred titan from Copenhagen, has long been a beacon of gastronomic excellence, clinching the top spot on the World's 50 Best Restaurants list in 2021. René Redzepi's culinary philosophy revolves around the rhythmic cadence of the seasons, with three distinct menus that celebrate the bounty of the moment, often featuring foraged ingredients.

This year, from October 8 through December 18, Noma will once again grace the Ace Hotel Kyoto, offering both lunch and dinner services. The residency promises to showcase Japan's rich autumnal produce through Redzepi's Scandinavian lens, promising dishes that reinterpret Japanese flavors with Noma's signature innovation.

The experience, however, comes with a hefty price tag of €540 per person, excluding the mandatory drink pairing priced at €300, and an additional 10 percent service charge, bringing the total to approximately €924 per person. Despite the steep cost, the allure of dining at Noma ensures that reservations remain highly sought after, with last year's bookings filling up within minutes of release.

Prospective diners can mark their calendars for May 14, when the reservation system goes live. Additionally, the Ace Hotel Kyoto will offer accommodation packages that include a chance to secure a table at Noma, with room rates starting at ¥150,000 for two. Those interested in this once-in-a-lifetime dining experience are encouraged to subscribe to Noma's newsletter by May 7 for more details on the reservation process.

Noma's return to Kyoto is not just a celebration of culinary artistry but a testament to the enduring partnership between chef René Redzepi and the city's rich cultural and gastronomic heritage. As autumn leaves begin to fall, Noma Kyoto will once again become a pilgrimage site for food enthusiasts around the globe, eager to witness the magic that unfolds when Danish creativity meets Japanese tradition.

Equinox Secures $1.8 Billion Refinancing to Overcome Pandemic-Induced Financial Strain

In a significant financial move, Equinox, a renowned luxury gym chain, has managed to secure $1.8 billion in funding from a group of private capital investors, notably Sixth Street and Silver Lake, to refinance a looming $1.2 billion debt. This strategic refinancing effort was crucial for Equinox as it sought to recover from the severe economic impacts caused by the COVID-19 pandemic, which had forced the closure of its facilities, led to a decline in membership, and precipitated a liquidity crisis. The pandemic's aftermath left Equinox in a precarious position, with rising interest rates and a high level of debt exacerbating its financial difficulties and raising concerns about its ability to continue operations without restructuring.

The refinancing package, structured in two loan tranches without the inclusion of preferred equity or convertible debt, ensures that the existing equity holders' interests are not diluted. Equinox, owned by the Related Companies real estate group, faced the risk of being downgraded into junk territory by rating agencies like S&P Global and Moody’s if it didn’t make this move. These agencies had expressed concerns over Equinox's dwindling cash reserves and its capacity to generate sufficient cash flow to cover its fixed charges and debt obligations under the prevailing high interest rates.

However, the successful refinancing, along with investments from executives at Related, which was supported by a consortium that also includes Ares Management, HPS, and L Catterton, marks a turning point for Equinox. The company has begun to see a recovery in its financial health, with a notable 27% increase in revenue last year. Furthermore, Equinox is embarking on an ambitious expansion plan to open 25 new clubs, which will expand its footprint by approximately 20%. This expansion is a testament to Equinox's resilience and its status as a leader in the high-performance luxury lifestyle sector.

Harvey Spevak, the executive chair of Equinox, highlighted the company's remarkable recovery and growth, emphasizing record performance in revenue growth and member engagement. This, he noted, underscores Equinox's dominant position in the global luxury lifestyle market. The successful refinancing and ongoing expansion efforts reflect Equinox's strategic response to the challenges posed by the pandemic, setting the stage for its continued growth and success in the fitness industry.

Manhattan's Luxury Real Estate Market Sees Dip in New Development Sales

Manhattan’s luxury real estate market is experiencing a slight shift as the spring buying season gets underway. This past week saw 28 luxury home contracts signed, each asking for $4 million or more. This activity indicates that the market is maintaining a pace similar to last year, with a total of 235 luxury contracts signed in the first 10 weeks of 2024, slightly down from 240 in the same timeframe in 2023.

A notable trend this year is the decrease in sales of new development units, with 67 sponsor units going into contract since the beginning of January, compared to 88 in the early weeks of 2023. This decline is attributed to the tightening inventory of new developments, suggesting a potential bottleneck in the supply of luxury new builds in Manhattan.

Despite this downturn in new development sales, the luxury market's high-end segment continues to thrive. The most expensive sale last week was a four-bedroom condominium at 1 West End Avenue, which went under contract for $17.95 million. This duplex apartment boasts approximately 5,300 square feet of living space, featuring a library and double-height ceilings, along with access to a suite of premium amenities such as a pool and terraces with cabanas. The buyers, a local family previously residing on the Upper West Side, have chosen a residence that epitomizes the luxury lifestyle Manhattan offers.

Following closely, the second-largest contract was for a three-bedroom unit asking $17.7 million at 50 West 66th Street. This property offers over 2,800 square feet of space, panoramic views of Central Park, and a modest outdoor area. The building, set to welcome residents later this year, promises luxury amenities including a pool, basketball, and pickleball courts, underscoring the continued appeal of high-end new developments despite the overall slowdown in sales.

This snapshot of Manhattan's luxury real estate market highlights a complex landscape where demand for high-end properties remains strong, even as the market adjusts to a tighter inventory of new developments. Signaling a resilient market that adapts to the evolving preferences and needs of its affluent clientele, buyers are continuing to invest in premium living spaces, met with exclusive amenities and the prestige of Manhattan living.

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