The lingerie world got a wakeup call Friday (Mar 11) amid reports that the budding Savage X Fenty brand backed by singer Rihanna is said to be considering an IPO to fund its expansion.
According to unnamed sources in a Bloomberg report, the 5-year-old brand is currently talking to investment bankers about the possibility of going public. While no final decision has been made, these industry insiders suggest that the Savage X Fenty brand, website and a handful of physical stores could be worth as much as $3 billion, without offering any details as to how they derived that valuation.
By way of comparison, category leader Victoria’s Secret, which is undergoing an inclusion-focused image remake following its own spin-off and listing 7-months ago, generated $6.8 Billion in sales last year via 1,400 worldwide locations and its website and is currently valued at about $4.1 Billion.
See more: After 7-Month ‘Brand Transformation,’ Victoria’s Secret 2.0 Is Almost Unrecognizable
That said, Savage X Fenty, which also caters to a diverse clientele via intimate apparel that runs in sizes up to 4XL, regards itself as a disruptive business that is starting to scale and therefore bodes watching.
The Fenty Touch
To be sure, had 34-year-old Robyn “Rihanna” Fenty not already launched two successful businesses in recent years, it might be easy to dismiss the latest lingerie push. However, given the success of Fenty Beauty, which is operated by fashion giant LVMH, and her Fenty Skin cosmetics line, the billionaire who is reputed by some to be among the wealthiest woman in showbiz has a track record that cannot be ignored.
It also doesn’t hurt that she has aligned with private sector backers for Savage, which was launched in 2018 and is jointly owned with Los Angeles-based TechStyle Fashion Group, a D2C retail specialty firm that touts its ability to take brands from “online to anywhere.”
“We launch brands online and then springboard them into new markets, categories, and omnichannel retail,” TechStyle’s website reads, adding that this gives startups a solid base that enables them to grow at scale.
As of now, Savage X Fenty has two retail locations currently open in southern California and Las Vegas, with three more brick-and-mortar stores slated to open soon in Houston, outside Philadelphia and Washington D.C. in March and April.
In addition, the brand has just completed a $125 million Series C fundraising with a mix of retail, financial and media industry backers who believe the Barbados-born singer-actress-entrepreneur can strike gold once again with her lingerie line.
The Fame Train
While Rihanna’s track record, so far, has been remarkable, she is not the only celebrity A-lister looking to build a second career in business. Other notable cross-over success stories include Kim Kardashian and Kanye West.
That said, a famous founder alone is not a guarantee of success in the stock market, as evidenced by the rocky public path actress Jessica Alba’s Honest Co. has faced in its first 10 months of trading. The sustainable diaper and wellness product maker has seen its shares fall over 75% from a peak of $23 to a trough of $5, shrinking its market value to less than $500 million.
See also: Jessica Alba’s Honest Company Notches $412.8 Million IPO
Savage X Fenty did not respond to a request for comment but promotes the fact that it disrupted and redefined the category via accessible price points and styles designed to appeal to “every mood, every vibe and every BODY.”
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