FT : Italy’s tax credit experiment puts Meloni government in a bind

Italy’s tax credit experiment puts Meloni government in a bind
Protesters take to the streets as restrictions on pandemic-era ‘Superbonus’ scheme cause liquidity crunch in construction sector

Italy’s pandemic-era tax credit scheme for home renovations has created a political and fiscal mess for Giorgia Meloni’s government, with construction company owners taking to the streets to protest an acute liquidity crunch.

The controversial “Superbonus” programme, introduced by the populist Five Star Movement-led government in 2020, encouraged property owners to upgrade the energy efficiency of their homes with transferable tax credits to cover the costs of the work.

But after spurring a home improvement boom, the scheme was tightened by consecutive governments amid concerns about fraud and the growing cost to the public exchequer. The restrictions have left thousands of small construction businesses with €20bn of frozen tax credits stuck on their books.

This week, business owners sitting on piles of unwanted tax credits marched in Rome and Genoa to express their frustration at the Meloni government’s failure to find a quick solution to their woes.

“It’s an emergency,” said Angelica Donati, president of the youth wing of Italy’s National Builders’ Association. “We need to save companies that legitimately believed in this measure . . . and are now at risk of failing because they have all these credits in their fiscal drawers that they can’t get rid of.”

The builders’ association estimates that up to 32,000 small construction companies are at risk of going bust unless the government makes good on a pledge to help them unload their accumulated tax credits.

“We have been stuck for a year,” said Antonio Pagliuca, who has €1.7mn of frozen tax credits on his company’s books and a working capital crunch. “A lot of companies are in difficulty: those who dedicated themselves to Superbonus projects are in dire straits.”


When launched, the Superbonus gave property owners tax credits worth 110 per cent of the cost of energy-related home improvements such as installing insulation or double-glazed windows and replacing ageing boilers. These transferable credits were often used to pay contractors, which in turn used them to pay supplies or sold them to financial institutions.

The scheme helped drive Italy’s economic rebound from the Covid shock. After falling 6.2 per cent in 2020, construction investment grew 20 per cent in 2021 and 12 per cent in 2022, as property owners seized the opportunity for costly improvements at public expense.

Just 2,800 buildings a year underwent such renovations before the Superbonus, but afterwards more than 360,000 homes were upgraded.

“We had a lot of requests from citizens who without this measure could have never thought of renovating their homes,” said Emanuela Contessa, co-owner of CEA Construction. Her company’s revenues shot up to €3.7mn in 2021, compared with €2.5mn in 2019.

But the market for the tax credits — likened by some economists to a stealth parallel currency — broke down last year when Mario Draghi’s government limited how many times the credits could be traded.

Meloni’s government last month imposed even tighter restrictions, lowering the tax credit rate to 90 per cent and declaring newly generated tax credits non-transferable.

“The Superbonus was conceived with acceptable intentions but it was so badly written and so badly enforced that it generated huge problems that we have inherited today,” Meloni said in a social media video, after the changes.

“The person who invented the scheme campaigned saying, thanks to him you renovated your house for free . . . But what the state does is never free: the money it spends is taxpayer money . . . it affects state finances,” she said.

While the finance ministry called the new curbs an “indispensable perquisite for the protection of public finances for 2023”, it promised to address the “serious financial liquidity problem” of companies with frozen credits from the past.

“The most important issue now is how to let the companies survive — not to make profits — but survive,” said economist Pierluigi Testa, president of Trinità dei Monti, a Rome-based think-tank.

Even before the liquidity crisis, climate change experts had complained that the relatively modest energy efficiency gains required by the scheme were not commensurate with the huge public expense.

“We have thrown a lot of money at the building sector but emissions have remained at the same level,” said Luca Bergamaschi, co-founder of ECCO, an Italian climate think-tank. “It used a lot of public money for inefficient technology — and most of the money went to rich people.”

Authorities estimate the Superbonus has so far cost about €110bn, or about 6 per cent of gross domestic product. Italy recently raised its budget deficit estimates for the last three years — after the EU required it account for tax credits when they are generated, rather than when utilised.

But economists warn that the final Superbonus bill could rise as companies complete accounts for 2022, and works continue, albeit at a more limited scale, in 2023. “They don’t know the real magnitude of the phenomenon,” Testa said.


Companies have been left with a bitter legacy. After the initial boost, Contessa is struggling with €1mn of tax credits on her books, a collapse in demand for home improvements and skittish suppliers requiring that building materials be paid for up front.

Though she had received tentative offers to buy her tax credits at a 20 to 30 per cent discount, she has been wary of absorbing such losses. “For almost two years we have carried out works, bought the materials, paid the workers, but we have not gotten paid yet,” she said.

Pagliuca said the sector’s distress was visible in suspended works all over his home province of Caserta. His own company, which saw its revenues jump from €3mn to €6mn between 2019 and 2021, hopes to refocus on local public works, as it did before the Superbonus programme.

But he expects many small firms to shut in the coming months, leaving a legacy of unfinished works, disgruntled clients and unpaid bills. “They can no longer carry on,” Pagliuca said. “The absurdity is that it is the Italian government that put companies in trouble . . . It’s horrendous.”

FT : Hundreds of funds to be stripped of ESG rating

Hundreds of funds to be stripped of ESG rating
Unpublished BlackRock research also reveals thousands more will be downgraded in wide-ranging MSCI shake-up

Hundreds of funds are about to be stripped of their environmental, social and governance ratings and thousands more will be downgraded in a shake-up being pushed through by index provider MSCI.

The impact could be particularly acute in Europe where a growing number of institutions will only invest in funds that are deemed to be compliant with ESG-investing principles. In 2022, ESG exchange traded funds accounted for 65 per cent of inflows into European ETFs, according to Morningstar.

MSCI, which has $13.5tn of assets benchmarked against its indices, is yet to publish the results of a consultation on its ESG ratings. But according to unpublished research by BlackRock’s iShares arm, the world’s largest ETF provider, the number of European ETFs with a triple-A ESG rating from MSCI is set to tumble from 1,120 to just 54, while the number with no rating will surge from 24 to 462.

The changes are part of a push by index providers to tighten up the criteria for what qualifies as an ESG-compliant fund amid pressure from regulators concerned about the prevalence of so-called “greenwashing” as the sustainable finance industry expands rapidly. The sharp reduction in funds with top ratings could mean that ESG-focused investors have fewer places to put their cash, potentially driving up the price of assets with a sustainable label.

Under MSCI’s changes, all “synthetic” ETFs that use swaps to track the value of assets will lose their ESG rating — even if funds that own the identical underlying assets are rated highly.

In addition, most “physical” funds, which directly hold portfolios of equities or bonds, are likely to have their rating lowered.

The changes, due to take effect by the end of April, will apply to all ETFs and mutual funds globally.

MSCI declined to comment on the scale of the downgrades. The company said its changes “will lead to fewer funds being rated as AAA or AA and will reduce the volatility in ESG fund ratings, which are outcomes that our client base broadly supported”.

In Europe alone, 1,476 ETFs will have a lower rating, 905 will be unchanged and 78 will have a higher rating, the iShares research indicated. A further 446 funds will lose their rating entirely, including more than 400 derivative-based funds.


If the same picture was replicated across ETFs and mutual funds worldwide then it is likely several thousand funds would be downgraded.

The most draconian change will affect synthetic, swap-based ETFs, which have a swap contract in place with a counterparty to replicate the performance of the underlying assets, rather than actually owning the assets themselves, as a physical ETF does.

MSCI said in its statement that “the [ESG] rating is calculated based on a fund’s underlying holdings data. In the case of swap-based ETFs, the underlying data MSCI receives in most cases is the swap collateral holdings, rather than the constituents of the underlying index that is tracked.

“Therefore, we will no longer rate swap-based ETFs until we have determined a method to consistently rate a swap-based ETF based on the constituents of the underlying index that it tracks.”

MSCI did add, though, that while it was moving away from rating the funds on the basis of their underlying indices, “investors in swap-based ETFs are exposed to the ESG risks and opportunities of the underlying index rather than the collateral”.

By contrast, S&P Dow Jones’s ESG ratings are based on indices, not funds, so a swap-based ETF tracking the S&P 500, say, would have the same rating as a physical one replicating the same index.

“The product provider has the ability to exercise discretion on how they intend to track or replicate the index, including using derivatives instead of holding an index’s constituents directly,” S&P said.

Jack Turner, head of ESG portfolio management at 7 Investment Management, called for “more industry guidance on how to measure the ESG risk of derivatives in portfolios”.

“MSCI’s change probably reflects the lack of an industry-wide approach,” he added.

MSCI’s second change affects the ESG rating of physical funds.

Currently, this rating is based on the ESG scores of its underlying holdings and an “adjustment factor”, based in part on the fund’s exposure to companies with improving versus worsening ESG ratings. MSCI is now scrapping this adjustment factor.

At present about 73 per cent of ETFs and mutual funds have a positive adjustment factor, MSCI said, so removing it “will lead to more downgrades than upgrades”.

Turner said 7IM agreed with the decision to remove the adjustment factor as it will drive “meaningful differentiation in ESG ratings between funds”, rather than so many being rated triple A.

>>> US After Hours Summary: Quiet after hours session; SCHL -14.2%, OXM -6.7% lower on earnings; CURV +14.8%, HRTX +12.3% higher on earnings

After Hours Summary: Quiet after hours session; SCHL -14.2%, OXM -6.7% lower on earnings; CURV +14.8%, HRTX +12.3% higher on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CURV +14.8%, HRTX +12.3%, ADMA +6.1%, HROW +5.5%, MO +0.4% (reaffirms FY23 EPS guidance)

Companies trading higher in after hours in reaction to news: XAIR +2.5% (names new CMO), DHT +2% (files mixed shelf securities offering), HA +1.6% (reaches deal with Gevo to purchase 50 mln gallons of sustainable aviation fuel), SWX +1.4% (Carl Icahn increases stake), UBS +1% (UBS and CS among banks facing DOJ Russia-sanctions probe, according to Bloomberg), KKR +0.9% (announces intra-quarter monetization activity update for Q1), C +0.7% (tells staff not to poach clients from banks under stress, according to Financial Post), RTX +0.7% (awarded $320 mln U.S. Air Force contract), CS +0.6% (UBS and CS among banks facing DOJ Russia-sanctions probe, according to Bloomberg), PLTR +0.4% (AUSTRAC renews its partnership), JPM +0.4% (tells staff not to poach clients from banks under stress, according to Financial Post), JNJ +0.3% (Health Canada expands use of IMBRUVICA), SF +0.1% (reports February operating data)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SCHL -14.2% (also authorizes new $50 mln share repurchase program), OXM -6.7% (also increases dividend)

Companies trading lower in after hours in reaction to news: TALO -4.6% (submits Zama Unit Development Plan), NNI -3.7% (announces reduction of staff due to contract changes impacting student loan servicing), YETI -1.9% (realigning its commercial and sales organizations), WW -0.7% (chairman resigns, names new chairman), MDXG -0.3% (CFO to step down), CSR -0.2% (names COO as new CEO), ABM -0.1% (to deliver housekeeping and event staffing for stadiums in Florida)

>>> US Close Dow +0,23% S&P +0,30% Nasdaq +1,01% Russell -0,41%

Closing Stock Market Summary

The stock market started the session on a decidedly upbeat note, attempting to recover some of the sharp declines registered yesterday. The upside momentum started to dissipated, though, after the S&P 500 briefly tipped above the 4,000 level at its high for the day.

Still, the main indices remained in positive territory until an uptick in selling interest without an obvious catalyst dragged the market into negative territory in the late afternoon. Ultimately, the main indices closed in the green, but well off their highs for day, thanks to notable strength in some heavily-weighted components.

Investors were still digesting the Fed's latest rate hike and commentary from Fed Chair Powell today along with rate hikes from central banks overseas.

Briefly, the Bank of England announced a 25-bps rate hike and hinted at more increases in the future while central banks from Switzerland, Norway, Hong Kong, and Philippines also hiked their policy rates. The Swiss National Bank also said the country's bank crisis is over.

Initially, buying interest was broad in nature with mega cap stocks in a leadership position. By the close, most mega cap stocks maintained a leadership position while the broader market deteriorated. The Vanguard Mega Cap Growth ETF (MGK) was up 1.1% versus a 0.3% decline in the Invesco S&P 500 Equal Weight ETF (RSP).

Strikingly, consumer-oriented Tesla (TSLA 192.22, +1.07, +0.6%) and Amazon.com (AMZN 98.71, +0.01, +0.01%) were exceptions in regards to mega cap leadership, having fallen into negative territory around the same time that the main indices fell below their flat lines. 

Bank stocks again fell under notable pressure as the market deteriorated. The SPDR Bank ETF (KBE) declined 2.5% and the SPDR Regional Bank ETF (KRE) fell 2.8%.

Only two of the S&P 500 sectors were able to close with a gain -- information technology (+1.7%) and communication services (+1.8%) -- while the energy (-1.4%), utilities (-1.0%), and financials (-0.7%) fell to the bottom of the pack.

The 2-yr note yield fell 11 basis points today to 3.78% and the 10-yr note yield fell nine basis points to 3.41%.

  • Nasdaq Composite: +12.6% YTD
  • S&P 500: +2.8% YTD
  • S&P Midcap 400: -1.8% YTD
  • Russell 2000: -2.3% YTD
  • Dow Jones Industrial Average: -3.1% YTD

Reviewing today's economic data:

  • Initial jobless claims for the week ending March 18 decreased by 1,000 to 191,000 (consensus 204,000) while continuing jobless claims for the week ending March 11 increased by 14,000 to 1.694 million from last week's revised level of 1.680 million (from 1.684 million).
    • The key takeaway from the report is that initial claims remain at a low level, pointing to little recent change in the health of the labor market.
  • Q4 current account balance rose to -$206.8 billion from a revised -$219 billion (from -$217.1 billion).
  • New home sales increased 1.1% month-over-month in February to a seasonally adjusted annual rate of 640,000 units (consensus 650,000) from a downwardly revised 633,000 (from 670,000) in January. On a year-over-year basis, new home sales were down 19.0%.
    • The key takeaway from the report is that sales activity edged up for the fourth time in the past five months, though the February increase was assisted by a downward revision to the sales total from January.
  • Weekly EIA Natural Gas Inventories showed a draw of 72 bcf versus a draw of 58 bcf last week.

Market participants will receive the following economic data on Friday:

  • 8:30 ET: February Durable Orders ( consensus 1.6%; prior -4.5%) and Durable Orders ex-transportation (Briefing.com consensus 0.3%; prior 0.7%)
  • 9:45 ET: Preliminary March IHS Markit Manufacturing PMI (prior 47.3) and preliminary March IHS Markit Services PMI (prior 50.6)

FT : Russian accused of evading sanctions escapes house arrest in Italy

Russian accused of evading sanctions escapes house arrest in Italy
Artem Uss goes missing a day after an Italian court approved his extradition request to the US

A Russian businessman wanted in the US for alleged money-laundering and sanctions evasion has escaped from house arrest in Italy, a day after an Italian court approved his extradition.

Artem Uss, 40, the son of the governor of the Russian province of Krasnoyarsk in Siberia, slipped out of his home in the small town of Basiglio near Milan on Wednesday afternoon despite the use of an electronic tag to monitor him.

“Intensive investigations are under way to find him,” Italy’s Carabinieri police said in a statement on Thursday.

Uss’ defence team said it did not know where he was, Russian state newswire Tass reported.

Uss, the subject of an international arrest warrant, was taken into custody at Milan’s international airport on October 17, weeks after US authorities charged him with criminal conspiracy, fraud and money laundering.

After about six weeks in jail, Uss was released to house arrest — with an electronic bracelet to monitor him — in early December, following an Italian court order.

The Carabinieri said officers rushed to the Russian’s home on Wednesday afternoon as the bracelet alarm began signalling his potential escape. They found he had already slipped away.

The police — whose station was just 2.3km from Uss’s home — said officers had checked on him at home an hour earlier and found nothing amiss.

The day before Uss’s escape, an appeals court in Milan had ruled he could be extradited to the US to stand trial on charges of bank fraud and violating an embargo against Venezuela.

According to US prosecutors, Uss was the co-owner of a Germany-based commodities trading and industrial equipment business called Nord-Deutsche Industrieanlagenbau.

US authorities claimed he used the German trading company to buy sensitive US military technology, then sent it to Russian entities, including sanctioned companies.

It said the company also smuggled hundreds of millions of barrels of Venezuelan oil to buyers, including to groups controlled by sanctioned oligarchs.

While the Italian court ruled the US could not try the Russian on the charges of smuggling military technology or money laundering, it said he could be held to answer the other two charges.

Shortly after Uss’ arrest in October, police in Moscow hurriedly put together a money-laundering case against him in Russia and secured a court order for his extradition. The hasty request probably indicated that Russia wanted to rescue him from US prosecution by remanding him there, the Kommersant newspaper reported.

Uss asked the court to extradite him to Russia instead of the US in January. Russian state media has suggested the US wants to use him as a pawn in a potential exchange for US nationals imprisoned in Russia, including ex-Marine Paul Whelan.

Russian deputy foreign minister Sergei Ryabkov, asked about the prospect of an exchange involving Uss on Wednesday ahead of his escape, said Washington had not expressed an interest in exchanging him for US citizens at “earlier stages of the discussion”. But Ryabkov added “everything is possible”, according to Tass.

“I don’t know what Mr Uss’ fate will be. I hope that he will return home one way or the other. But for now there is no basis to talk about anything to do with any kind of exchanges,” Ryabkov said.

The Russian businessman’s embarrassing escape comes after Italy’s prime minister Giorgia Meloni reiterated her commitment to Ukraine in its struggle against Russia’s invasion.

In parliament this week, Meloni, who visited Kyiv last month, pledged her government would support the Ukrainian cause even at the cost of her own popularity because “it is right to do so in terms of national values and interest”.

Reuters - N. American fixed income group won't take legal action over Credit Sui

N. American fixed income group won't take legal action over Credit Suisse AT1 fiasco-source

TORONTO, March 23 (Reuters) - The Credit Roundtable, a lobby group of some of the biggest fixed income asset managers from the United States and Canada, has decided not to take legal action against Credit Suisse AG (CSGN.S) a person familiar with the matter told Reuters on Thursday.

Earlier this week, the Swiss regulator ordered 16 billion Swiss francs ($17.5 billion) of Additional Tier-1 (AT1) debt to be wiped out under its rescue takeover by UBS (UBSG.S).

The issue came up for discussion in a meeting earlier this week when some members wanted to sue the banks for the write-off, but the association decided not to take any action, the person added. The source was not authorized to speak about the matter publicly.

The source said it was always "black and white" that these bonds can be written down to zero in adverse events. "So if you bought it and didn't know about it, shame on you and if you bought it and knew about it, well..., " the source added.

The Credit Roundtable was not available for an immediate comment. Launched in 2007 for bondholders protection, Credit Roundtable consists of 43 members including PIMCO, Vanguard, MetLife (MET.N), Canadian pension fund Omers, Sun Life Financial Inc (SLF.TO) among others.

It was unclear if the individual members could pursue legal challenge.

The bond holders of Credit Suisse in Europe and UK have been seeking legal advice over the Swiss banking regulator's decision to write off AT1 bonds under the rescue take over by UBS. However on Thursday, the Swiss regulator once again re affirmed its position on creditor hierarchy.

WWD : Puig Sales Surpass 3 Billion-Euro Mark in 2022

Puig Sales Surpass 3 Billion-Euro Mark in 2022
All of the Spanish fragrance and fashion group’s product categories registered double-digit sales gains in the year.

PARIS — Beauty and fashion group Puig sped past its 3 billion-euro sales goal in 2022 and lassoed a 10 percent market share of prestige fragrances worldwide.

The family-owned Spanish company registered net sales of 3.62 billion euros in the 12 months, a 40 percent rise in reported terms and a 30 percent increase on a like-for-like basis on-year, driven by each of its product categories, which posted double-digit sales gains.

Business was spurred by a strong performance of Puig’s own brands amid a rise in consumer spending — especially for perfumes ­— and despite headwinds, such as the geopolitical environment, inflation and rising interest rates.

Marc Puig, chairman and chief executive officer of Puig, noted that the company’s showing “is a result of many of the choices that we have taken over the past 15 years.”

That included narrowing the group’s portfolio of categories, and focusing on storytelling and Puig-owned brands, which now make about 95 percent of its overall sales.

In 2022, Puig’s net profits were 400 million euros, up 71 percent. Its earnings before interest, taxes, depreciation and amortization reached 638 million euros, a 37 percent increase against 2021.

Puig had in March 2021 presented a three-year plan with an aim to reach sales of 3 billion euros in 2023 and 4.5 billion euros in 2025. However, due to strong growth during the past two years, the group already doubled its net revenue a year ahead of plan and is on track to triple its revenues by 2025.

The company was acquisitive in 2022, snapping up a majority share of Swedish prestige fragrance brand Byredo and incorporating wellness brands Kama Ayurveda and Loto del Sur, from India and Colombia respectively. The deals greatly increased the number of Puig’s own sales points and brought 1,000 new employees into the group.

Puig said the addition of the three companies had a limited impact on overall 2022 sales.

The group noted that in 2022, its fragrance and fashion business’ sales combined reached 2.67 billion euros, up 40 percent, beating the market average. The division’s sales growth was spurred by organic growth plus the addition of new brands, such as Byredo.

Puig attaining 10 percent market share last year in prestige fragrances was thanks to some of its own brands, including Paco Rabanne, ranking fifth, and Carolina Herrera, coming in sixth. Jean Paul Gaultier, meanwhile, placed 17th.

Puig remains the world’s fifth largest fragrance-maker.

“In the niche category, our intention is to reach 20 percent market share, because that’s a growing territory,” Marc Puig said.

Among the fragrance and fashion division’s highlights were, from the prestige category, the successful introduction of Fame from Paco Rabanne, the consolidation of Carolina Herrera’s Good Girl, which ranks third in the U.S., and the strong performance of Jean Paul Gaultier’s Scandal.

Notable in Puig’s niche fragrance portfolio was the opening of direct sales points for Penhaligon’s and L’Artisan Parfumeur in China, and Dries Van Noten’s first fragrance collection’s launch.

Puig’s fashion business, which includes the Paco Rabanne, Carolina Herrera, Jean Paul Gaultier and Nina Ricci brands, grew apace with the rest of the company.

Marc Puig highlighted Jean Paul Gaultier’s successful collaborations. The executive commended Wes Gordon’s evolution of the Carolina Herrera brand.

When asked about the renewal of Julien Dossena’s contract as Paco Rabanne’s creative director, after 10 years, or whether the fashion brand might change designers, Puig said: “We are very happy with the collaboration with Julien.”

Regarding Nina Ricci, he said: “We are very excited about what’s going on with that brand right now.”

Makeup was the product category that grew fastest for Puig in 2022, notching up a 52 percent rise to 626 million euros, spurred by the Charlotte Tilbury and Carolina Herrera brands. Charlotte Tilbury was the first-ranking color cosmetics brand in the U.K., and its position was bolstered by products such as the Pillow Talk makeup line and technological innovations combining consumer’s physical and virtual experience of the brand’s products.

Last year, Carolina Herrera registered its best results since launching its makeup collection in 2020. The Byredo makeup business saw the launches of numerous new products, while Dries Van Noten rolled out 30 shades of lipstick.

Puig’s dermocosmetics activity posted sales up 20 percent to 328 million euros. Investment in innovation and tech were stepped up for Uriage and Apivita, so as to keep developing science-based dermatology products with eco-friendly formulas, particularly in the sun care and antiaging lines. The leading skin care product for Charlotte Tilbury was Magic Cream.

By region, Puig’s growth was fastest in the Americas, where sales increased 56 percent to 1.31 billion euros, or 36 percent of overall group sales. That turnout was primarily reinforced by business in the U.S., its largest market by sales, and the dollar’s appreciation against the euro.

In the U.S., the prestige fragrance category and Charlotte Tilbury, which ranked first in Sephora, registered significant growth.

Puig’s sales in Asia, where the group reinforced its presence, rose 41 percent to 349 million euros. China remained a top-10 market for the group and posted 36 percent growth, despite the country’s zero-COVID-19 measures.

“It’s not in the top three yet, but we expect it to come soon,” Marc Puig said.

Sales in the Europe, Middle East and Africa zone came in at 1.96 billion euros, representing a 31 percent gain. Europe has five of Puig’s 10 major countries: the U.K., Spain, France, Germany and Italy.

Spain, the birthplace of the group, generates 7 percent of the company’s overall sales.

Puig’s digital business remained robust, rising by 23 percent and representing 25 percent of total company revenues.

The company’s sales in travel retail gained 72 percent versus 2021, thanks to travelers coming from the Americas and Europe. Against 2019, prior to the coronavirus pandemic, sales in the channel rose 28 percent.

Related to the environment, society and governance, Puig has committed to limiting global warming by 1.5 degree centigrade by 2030, in keeping with the Paris Agreement, and to becoming net-zero in emissions by 2050. With that in mind, each brand in the company defined its ESG goals.

At Puig, today 50 percent of power used comes from renewable sources, and all of its factories manufacturing perfumes send zero waste to landfill. In 2022, Puig was granted EcoVadis’ Gold Medal certificate and the Carbon Disclosure Project gave it an A- in Climate.

Puig’s ongoing Invisible Beauty Makers social action program supports the mentoring and financing of high-impact initiatives.

When asked if the company might make more acquisitions, Marc Puig said: “We have leveraged our balance sheet already, so we need to digest some of the acquisitions. We need to keep nurturing these brands.

“They are placed in growth territories, so that will help us continue growing faster than the industry for awhile,” he continued. “We have momentum with the different brands, clearly, to outgrow the industry for the next 12 months for sure — if not more.”

WWD : ‘Gabrielle Chanel. Fashion Manifesto’ at London’s V&A Will Span Coco Chane

‘Gabrielle Chanel. Fashion Manifesto’ at London’s V&A Will Span Coco Chanel’s Life and Career
The exhibition will feature more than 200 looks, opening to the public on Sept. 16.

LONDON — The work and life of Gabrielle “Coco” Chanel will be on display at the Victoria & Albert museum on Sept. 16, at the museum’s Sainsbury Gallery.

“Gabrielle Chanel. Fashion Manifesto” will be the first U.K. exhibition dedicated to the French fashion designer, charting six decades of her career, from the opening of her first millinery boutique in Paris in 1910 to her final show in 1971.

The showcase will be divided into 10 sections, starting with “Towards A New Elegance,” which will trace Chanel’s beginning in millinery and quick expansion into clothing.

“The Emergence of a Style” will focus on her minimal design aesthetic, which transcended onto theater stage and silver screen; “The Invisible Accessory” looks at the debut of the house’s famous perfume No5 and the launch of makeup in 1924 and skin care in 1927; “Luxury and Line” introduces the house’s eveningwear and Bijoux de Diamants, Chanel’s first and only collection of fine jewelry commissioned by the International Diamond Corporation of London in 1932; “Closing House” details how the war affected her business and personal life, as well as her return to the fashion scene in 1954 and the relaunch of her couture line; “The Suit” highlights how the Chanel suit became synonymous with uniform dressing; “Chanel Codes” examines how the 2.55 handbag and two-tone slingback shoes have endured; “Into the Evening” spotlights Chanel’s couture garments and cocktail suits; “Costume Jewellery” touches on Chanel’s playfulness with jewelry and rejecting conventions of fine jewelry; and “A Timeless Allure” will visit Chanel’s final collection of spring 1971.

Based upon an exhibition of the same name organized by the Palais Galliera in Paris in 2020, the exhibition will be reimagined for the V&A. It will feature rarely seen pieces from the London museum’s collection alongside looks from Palais Galliera and the Patrimoine de Chanel, the heritage collections of the fashion house in Paris.

“This is just really the precursor to the king’s state visits to Paris this weekend,” joked Tristram Hunt, director of the V&A at the exhibition’s further unveiling.

“This exhibition will analyze her contribution to fashion and her radical vision of a style that created modernity and reflected the aspirations of women and the evolution of their place in society,” said Bruno Pavlovsky, president of Chanel SAS and president of Chanel Fashion.

The exhibition features more than 200 looks — some seen for the first time, including costumes designed for the Ballets Russes production of “Le Train Bleu” in 1924; outfits created for Hollywood stars Lauren Bacall and Marlene Dietrich, and early examples of Chanel’s seminal take on evening trousers.

For the V&A, the Chanel exhibit follows major success of the “Christian Dior: Designer of Dreams” exhibition.

Tickets to “Christian Dior: Designer of Dreams,” which took place in 2019, sold out less than three weeks after opening, and welcomed nearly 600,000 visitors. The show’s run was extended from July until September of that year and was one of the most successful in the museum’s history.

“We knew that ‘Christian Dior: Designer of Dreams’ would be popular, but we have been overwhelmed by the phenomenal visitor response to date,” Hunt said in 2019.

The largest and most comprehensive British show on the House of Dior, it was a grand sweep of sparkle, rippling wool, sculpted jackets and floral prints and motifs. It threw light on the designer’s fascination with Britain, his “lines” and defining looks, and his international outlook and inspirations from history.