This European Brand Wants To Be The Next Victoria’s Secret

You may not have heard of Italian retailer Calzedonia, but it’s angling to give Victoria’s Secret some serious competition, according to Bloomberg Business. Beyond outposts in its native Italy, Calzedonia Group has over 3,800 store locations internationally. These locations include: its namesake legwear and beachwear brand, Calzedonia; its lingerie brand, Intimissimi; and a few other brands in the Calzedonia portfolio. Compare that to the Victoria’s Secret empire, which is in the ballpark of 1,100 locations in the U.S., Canada, and the U.K.

Calzedonia is primarily found throughout Europe; expansion in Asia hasn’t proven fruitful for the brand, though there are a couple of locations in Japan and Hong Kong. And it doesn’t have any U.S. stores yet, but that’s definitely about to change, with stateside openings slated for the next few years. It certainly sounds like Calzedonia is vying to wrest some customers (and revenues) from Victoria’s Secret. “There is a dominant competitor in the United States, but that is maybe a reason why…women would like to have an alternative,” Caldzedonia Group’s billionaire owner, Sandro Veronesi, told Bloomberg.

Calzedonia raked in roughly $2.5 billion in sales in 2014 (compared to Victoria’s Secret’s $11.4 billion for the same period, according to Business Of Fashion). Victoria’s Secret trots out its fleet of super-toned Angels and many pounds of glitter for its annual fashion show each November; now, Calzedonia Group has started an annual spectacle of its own. The second iteration of Intimissimi on Ice, which happened over the weekend, involved an Ellie Goulding performance, Olympic ice skaters, and Intimissimi costumes designed by Patricia Field.

Granted, Calzedonia’s namesake brand is far more sock-centric than Victoria’s Secret, but it does have a big lingerie presence via Intimissimi. Time will tell if an Italian import can poach customers (and cash) from Victoria’s Seceret.

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Italy’s Billionaire Lingerie King Takes Aim at Victoria’s Secret

VERONA, Italy — Sandro Veronesi, the billionaire whose Calzedonia Group sold 1.8 billion euros ($2.5 billion) worth of intimate apparel and clothing last year, is planning to challenge Victoria’s Secret on its home turf by opening his first U.S. stores.

“We will start maybe from New York, which is a fashion city, and then we will expand in the major cities,” the Italian said in a Bloomberg Television interview at Verona’s Gran Guardia Palace. “There is a dominant competitor in the United States, but that is maybe a reason why also women would like to have an alternative.”

The closely held company sells Intimissimi lingerie, Calzedonia socks and Falconeri knitwear through a network of more than 3,800 stores mainly in Europe. The 55-year-old owns 84 percent of the business and has a $2.4 billion fortune, according to the Bloomberg Billionaires Index. He declined to comment on his net worth.

Asian Markets

The underwear maker has a handful of stores in Hong Kong and Japan, and isn’t planning on expanding further into Asia where consumers have proven reluctant to switch from domestic rivals.

“It’s a little bit easier than Asia even if still a tough job,” David Pambianco, managing director of Milan-based fashion consultancy Pambianco said by phone. “He is playing against bigger companies than him with a lot of money to invest. To be better than the others is not so easy.”

Veronesi said the U.S. stores would open in the next couple of years. He acknowledged that it may prove tricky to win over consumers in a market dominated by L Brands Inc., the owner of the Victoria’s Secret and La Senza labels. The Columbus, Ohio- based company had revenue of $11.4 billion and a market value of $24.7 billion in the year ended Jan. 31, 2015. No response was received to an e-mailed request for comment sent to L Brand’s press office.

Internal Growth

Veronesi said Bloomberg’s $2.8 billion valuation of Calzedonia is “more or less” accurate though its precise value is difficult to assess. The group has no immediate plans for an initial public offering and isn’t evaluating any acquisitions, according to Veronesi.

“We prefer to grow internally,” he said. “There are a lot of companies on sale in Europe in our business but at the moment the asking prices are very high.”

Meanwhile, Veronesi is increasingly pushing the visibility of his brands, including producing the second Intimissimi on Ice show in Verona this past weekend, a musical performance featuring costumes by his company, Olympic ice skaters and pop singer Ellie Goulding.

“Every brand is trying to communicate with customers in a better way, in a more efficient way, in a novel way, because certainly customers are tired of the same communication,” Veronesi said. “The idea is to offer a show — it’s a way to make the brand more welcoming, more interesting, more up-to-date.”

By Tom Metcalf, Flavia Rotondi; editors: Robert LaFranco, Jeffrey Taylor.

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