MILAN – Paul & Shark is reorganizing its men’s wear distribution in the United States.
The company has tapped New York-based Michael Burns’ M5 Showroom to handle the sales, starting from the fall-winter 2017 season. Previously, Paul & Shark’s distribution in the region was managed by a company showroom in New York, established about 15 years ago.
“Over the past few seasons, we’ve been growing in the United States less than we expected, and I think this happened mainly because I missed crucial information on the North American market,” said Paul & Shark chief executive officer Andrea Dini. “Originally, we decided to approach the market from our office in order to offer clients a better service, but we realized that a multibrand showroom like M5 can give us a visibility and exposure we cannot have by ourselves.”
According to Dini, through this new strategy, Paul & Shark, which operates stores in New York, Los Angeles, Miami and Las Vegas, aims to double within five years its distribution across the United States, which today counts 70 points of sale.
“The United States currently account for 3 percent of our total wholesale business, and we expect to reach a 10 percent share in five years,” Dini added.
He expects the company to close this year in line with 2015, when Paul & Shark generated revenues of 170 million euros, or $187 million at average exchange.
“This year we had to make big investments in China to take over the 43 franchising stores opened by our former local partner, which created [for] us some problems,” Dini explained.
In terms of franchising business, the executive said that the company inaugurated last week a new store in Jakarta and is opening a flagship on London’s Regent Street before Christmas.
Paul & Shark will continue to present its men’s collections during Milan Fashion Week, with an undisclosed special event schedule for Jan. 16.