Vera Wang, WHP Global Discuss New Chapter for the 35-year-old Luxury Brand

“It’s exciting. Who would have thunk it?” said Vera Wang Monday morning after a deal for WHP Global to acquire her 35-year-old luxury lifestyle brand was revealed.

In a telephone interview with Wang and Yehuda Schmidman, chairman and chief executive officer of WHP Global, the two spoke animatedly about plans for the future, and where they see the business headed. Hospitality was high on Wang’s list of growth opportunities.

Wang said she wasn’t necessarily actively looking for an investor, but “probably I’ve been searching to expand my brand throughout my whole career and my whole company life.”

“I’ve got to be honest: I felt it was the perfect time for Yehuda and for me and for our brand — the synergy and his belief in me. They are in a full growth mode, and I mean it. Frankly, I know that we’ve generated a lot of branding over the past six or seven years, and I think it’s the perfect time for me to execute in ways that I could not have done before. With their enormous support, this gives me an opportunity to grow in a way that I could never have done on my own,” said Wang.

Founded in 1990, Wang’s brand today generates over $700 million in annual retail sales across categories including women’s apparel, bridal, men’s tuxedos and suiting, fine jewelry, fragrance, and home, among others.

“In all fairness, you need financing and a level of expertise, and also energy, in the sense of desire and passion. All these things are things that Yehuda has in spades,” said Wang.

WHP Global is a global management firm that was cofounded by Shmidman in 2019 with the help of funds managed by Oaktree Capital Management, Ares Management and BlackRock. Its portfolio of brands runs the gamut from Bonobos, Joe’s Jeans, Rag & Bone and G-Star Raw to Anne Klein, Joseph Abboud, Isaac Mizrahi, Warners, Toys “R” Us and Babies “R” Us.

Shmidman told WWD: “This is the quintessential ‘1 + 1 equals 5.’ What Vera built is one of a kind, what the Vera Wang brand is is one of a kind and Vera Wang is a legend and one of a kind. We’re combining with an infrastructure of over $7 billion in sales, and we’re active in over 50 countries,” he added.

Shmidman said he and Wang have been talking about going global in Latin America, Asia and the Middle East, to which Wang interjected: “We’ve been global, people don’t really realize that. We’ve been in China for 25 years. We’ll have eight freestanding bridal stores with our partner in China. [There are seven right now]. We have had seven stores in Japan for probably 20 years.”

For the past 35 years Wang said her business has been self-financed, although she has had retail partners. In 2006, Wang held acquisition discussions with companies such as Liz Claiborne Inc. and St. John, before striking a lucrative licensing deal with Kohl’s for Simply Vera, Vera Wang in 2007. Wang, a shrewd negotiator, is known for taking her time before striking deals.

Asked what attracted him to the Vera Wang brand, Shmidman gave a one-word answer: “Everything.” He said he’s admired and studied the brand for some time. “Vera’s already built the brand in many countries, and there’s still so much more growth potential. When you think of the global industry of fashion and what Vera Wang represents to people and the emotional connection to people, this is all about the future. It’s all about what we can do together,” he said. He said Wang will not only continue as founder and chief creative officer of her brand, but she will be “an important shareholder of WHP Global.”

Citing opportunities for the brand, Shmidman said when one thinks about the DNA of Wang’s business, everyone will say bridal. “There are so many aspects of fashion already built, and more to come, and of course, there’s home, but there’s more,” he said. Wang added that she’s been in hard home and soft home for years, with a thriving business in sheets and towels, “not only at Kohl’s but at Macy’s.” She also has a licensing deal with Waterford Wedgwood. “The future of that is still gift registry and bridal registry and the amount of product we continue to create in crystal, plates, bone china, and silver. All these things have been going on forever,” said Wang.

Wang revealed that one of the biggest opportunities in their plans is hospitality. “That’s one of the most important categories that I could never tackle. I’ve had piecemeal offers,” she said. Wang said she’s had a branded suite at the Halekulani in Hawaii for over 15 years. And there were times in her life when she almost did a deal in Singapore for a Vera Wang hotel and chapels for weddings. “I’ve had a lot of stuff going on for 35 years, it was never was the right time and situation for me. But my first concern always was my core company and competency. This [deal] enables me to begin to explore other areas that I could never possibility get to,” said Wang.

Wang said she’d like to do hotels, some which could be bridal-oriented and some style-oriented. She likes to be local and bring a modern style sensibility to whatever country she’s in while respecting their heritage. “I’ve had so much experience in Italy and France, Hong Kong, Shanghai, Taiwan, Bangkok…. I just feel there’s a lot to offer there. Of course, bridal is a bit of a tease, but I think it’s a very important part of hospitality. I don’t know a hotel opening right now that doesn’t want to attract a huge event. There are very few that are bigger than bridal,” she said.

Asked if she’d like to sign a license for high-end ready-to-wear, Wang was game.

“That could happen, right, Yehuda? That will happen,” said Wang.

Shmidman added, “The reality is the opportunities are almost endless in the best of ways. What begins in bridal extends to all fashion, expands to all home, lifestyle, and now you’re the first person to hear about the vision into hospitality.”

Asked if the Vera Wang staff will remain intact, Shmidman said that they’ve signed the deal but haven’t closed yet. All the details and particulars will be forthcoming post-closing, which is expected in the new year. When he was specifically asked about his modus operandi when he takes over a company, such as Rag & Bone, and whether the infrastructure remains intact, Shmidman said it does. “Everything is about growth; what is amazing that it’s already built and how do we expand and grow?” He said WHP in the past six years has gone from zero to over $7 billion. “With Vera and other initiatives I wouldn’t be surprised if we surpass $8 billion next year.” The company has five offices around the world.

Wang believes she has created a company that’s unique for a fashion company.

“It’s emotional. We are an emotional company. We dress women on the most important days of their lives for their public — their friends, their family, their relatives. I don’t mean that giving birth to your first child isn’t emotional, I’m saying for your most public moment. When you think of the amount of weddings I have done at all price points, over 35 years, I can honestly say as an ex-skater, that I win the Olympic gold medal for the amount of weddings I attended, the amount of brides I have dressed. We’re truly based on a sense of romance and a sense of commitment and optimism. The most optimistic thing you do is to get married,” said Wang.

Wang said she’ll continue to pursue deals at both the high-end and for stores such as Kohl’s and Zales. She just signed new initiatives with Jared and Zales, and has new fragrances in the works with Coty.

“This is an opportunity for me to flex what’s it’s taken for me to build a company. I had no investors, and I did this self-funded, and I had no partners until now. And you know better than I how difficult it is,” said Wang. She said this is her 55th year in fashion, she just had her 75th birthday, and this is her 35th year in business. “These three milestones were this year,” said Wang, who had to leave the call because she had to take a call with the White House.

Asked what that was about, she said, “I have no idea. It’s anybody’s guess.”

Consultants think the acquisition makes sense for both parties.

Robert Burke, chairman and CEO of Robert Burke Associates, said, “We know that WHP is backed by Oaktree Capital Management and Ares Management. They’re really trying to go after a premium brand portfolio like Rag & Bone, G-Star and Joe’s Jeans. What’s unique about Vera’s business is that she’s always been very focused on being a lifestyle brand and a brand that has the potential for licensing. She was very early on with the mattress deal and the Lenox tabletop. She tapped into that bridal market and realized it was multifaceted. If she couldn’t make it, she partnered with someone who could.

“She’s still the most internationally recognized label in bridal, hands-down. I think there’s still a great deal of room for her brand to grown,” said Burke.

Andrew Jassin, managing director of Jassin Consulting Group, said, “Stuart [Kreisler, director of Jassin Consulting Group] and I have had a long relationship with Vera Wang. We are the ones that created the licenses for fine jewelry, and wine and prosecco, as well as with some other extensions. Though Vera Wang has many successful licensing partnerships, we believe that Vera Wang has been relatively conservative in its licensing.  I think it is a brilliant move by WHP; Vera Wang is a truly global brand with incredible consumer connectivity. WHP will extend the Vera Wang bandwidth via their professional licensing and management team. This is a win-win for everyone involved.”