Save the Duck has big plans. The Italian outerwear brand, known for its down-alternative jackets, is looking to expand after attracting new investors this year.
“In the next two to three years you will see how the company invests,” CEO Nicolas Bargi said in an interview at the Pitti Uomo men’s clothing fair in Florence to grow.”
Save the Duck generates 85 percent of its sales through wholesale channels and 15 percent through direct sales to consumers – 8 percent of that through e-commerce. With their targeted growth, a higher percentage of sales, up to 30 percent, could come from direct sales in the future, Bargi said in June.
New owners, new stores
The brand currently operates five stores – two in Milan and one each in Venice, St. Moritz and Hong Kong. A second store will soon open in Hong Kong, and two more in Bologna and New York.
Save the Duck has also targeted two other cities: Paris and Rome. The stores could be confirmed in the next few months, Bargi said. The locations in the metropolises are intended to make the brand better known. “In the medium and long term, this will accelerate growth and brand identity and awareness around the world,” he added.
The CEO retained a 20 percent stake in the company, while the remaining 80 percent changed hands in April. Italian private equity firm Progressio SGR, which invested as a minority owner in 2018, sold its stake. For this, the Austrian billionaire Reinold Geiger and André Hoffmann, the president and managing director of the cosmetics group L’Occitane, acquired 80 percent of the shares.
“I’m very happy about the move because the brand now has to become a global brand,” said Bargi, who founded the Save the Duck brand in 2012. “We have a very big opportunity to become one of the big brands.”
Flying growth
According to Bargi, the new owners are also aiming for an IPO. Until then, the company must first achieve sales of 150 million euros and earnings before interest, taxes, depreciation and amortization of 30 million euros.
“The goal is to get that kind of revenue and Ebitda in three to five years,” he said. “We’re going to push hard and see what we can do — the sooner the better.”
The company was growing strongly before the pandemic, with annual sales falling 6 percent after the coronavirus outbreak but rising 35 percent and 45 percent in the two following years.
“The company is soaring,” said Bargi. Last year’s revenues were €47 million and he is expected to increase them to €64 million in the current fiscal year. “And we will continue to be on the upswing in 2023 , even if the SS23 season is not an easy season.”
During the pandemic, Save the Duck has invested in its inventory management system and its people, which the CEO says has paid off once markets reopened and corona restrictions were eased.
The company has doubled its headcount in the last three years and is still looking for new talent, such as retail and online business managers and IT professionals. Save the Duck also wants to bring its e-commerce in-house and operate it itself.
Believably green
Clothing brands whose business model is based on sustainability are enjoying increasing popularity as consumers’ awareness of more environmentally friendly choices has increased in recent years. A prominent example of this trend is sustainable sneaker company Allbirds, which raised nearly $303 million when it went public last year.
Save the Duck is known for its jackets that keep you warm with a down alternative and describes itself as an animal-free and humane fashion label. Since 2019, the company has also been certified as a B Corp — for its social and environmental performance — and currently has an Impact Score of 95. Bargi hopes to achieve a better score in this year’s re-evaluation. Allbirds currently has a B Corp score of 89.4, while US outdoor brand Patagonia has a 151.4.
Bargi believes that the fact that Save the Duck was founded as a brand that focuses on sustainability is an important asset that tomorrow’s consumers will appreciate even more.
“The company will therefore be able to grow well over the next ten years,” he said.
He’s also worked to expand the outerwear brand’s collections to be year-round. Half of the products are no longer jackets: the Smart Leisure collection with pieces made of stretch nylon can be worn both at home and at work. The athleisure collection offers casual and sporty styles. Save the Duck has also launched men’s beachwear and may develop a similar offering for women next year.
“My dream is that the duck becomes the Red Bull of sustainability,” said Bargi. “It’s a lifestyle brand, it’s not just about a collection.”