Joseph Altuzarra is ushering in a new chapter for his business.
The designer’s 16-year-old namesake womenswear label announced on Tuesday that it had received a minority investment from P180, a new venture capital fund headed up by former Vince chief executive Brendan Hoffman and tech entrepreneur Christine Hunsicker. Terms of the deal were not disclosed.
As part of the deal with P180, Altuzarra will move its e-commerce operations, including inventory management and handling returns, to software platform CaaStle, where Hunsicker serves as chief executive, as well as adding on the ability to rent Altuzarra apparel, bags and more. The goal is for Altuzarra’s e-commerce business to drive profits for the overall brand.
Altuzarra — which last received outside funding from fashion conglomerate Kering for an undisclosed sum in 2013 — is among a growing number of luxury labels investing in their direct selling channels. But while some brands are reducing their reliance on wholesale, in handing its e-commerce operations to CaaStle, Altuzarra will be able to focus on growing its retail partnerships and further developing its assortment, said Shira Sue Carmi, Altuzarra’s chief executive.
“In a lot of ways, this feels like such a great partnership because it really allows us as a team to not have to worry about this part of the business as much,” Altuzarra said. “We’re able to really concentrate on other aspects of the business and for me, be able to concentrate more on design.”
P180 will also help Altuzarra grow its bottom line. The firm, which launched in May and has also invested in multi-brand retailer Elysewalker, is focussed on fashion brands and retailers as investment activity in the sector has softened amid a luxury slowdown. Hoffman argues that P180′s approach reduces risk by allowing portfolio companies to use CaaStle to improve inventory planning, helping them to chart a clear path to profitability.
“We needed to bring a different lens to the business in order to create that value,” Hoffman said. “We’ve been evaluating inventory wrong as an industry … so we feel like we’re bringing a different tool set technology, methodology that will turn these brands and retailers profitable.”
Beyond its investment from P180, Altuzarra is also looking to expand the brand’s visibility. Earlier this month, Joseph Altuzarra was named a designer-in-residence at Victoria’s Secret, where he will design four ready-to-wear collections for the brand. A few of those pieces are set to appear at the Victoria’s Secret fashion show on Tuesday in New York City.
“Victoria’s Secret is a huge machine with incredible marketing capabilities,” Altuzarra said. “That is great for Altuzarra because we’re still growing, and it’s important that we continue to reach new consumers.”
