Chanel Invests In THE ROW: The Luxury Fashion Power Move Explained

Mary-Kate and Ashley Olsen’s luxury brand The Row has received financial backing from the families behind Chanel and L’Oréal, The Business of Fashion can report, confirming a Thursday story by Bloomberg.

Investment funds controlled by the families of Chanel’s Wertheimer brothers and L’Oréal’s Françoise Bettencourt Meyers have taken a minority stake in the brand at around a $1 billion valuation. Net-a-Porter founder Natalie Massenet and Nick Brown also joined the investment via their Imaginary Ventures fund, as did Moda Operandi co-founder Lauren Santo Domingo.

Since being founded by former child stars Mary-Kate and Ashley Olsen in 2006, The Row has overturned expectations for a celebrity-owned brand with its exclusive positioning and rigorous approach to design (Hermès womenswear creative director Nadège Vanhee-Cybulski and Quira founder Veronica Leoni have both previously worked on its collections).

With ultra-high price points, luxe fabrication and a logo-free aesthetic, The Row has steadily emerged as America’s answer to Loro Piana — selling, for example, cashmere coats handmade in Italy, for $6250. Garments are designed with a contemporary edge that takes cues from Phoebe Philo-era Celine and Martin Margiela-era Hermès.

Since founding The Row, the Olsens have distanced their celebrity status from the brand’s identity. “It was a genius move,” Jess Graves, editor of the shopping newsletter The Love List said. “It clarified The Row as a serious fashion brand.”

To date, neither of the sisters is on social media, and The Row’s Instagram account posts mainly photos of art. The label recently reinforced its controlled image and air of mystery at its autumn-winter 2024 presentation, where it asked guests to refrain from using their phones to record photos or videos. In the age of social media overload, such restraint has only fuelled the brand’s elusive buzz. Chanel’s Wertheimer family, via their investment vehicle Mousse Partners and L’Oréal’s Françoise Bettencourt Meyers via the family’s Téthys fund, have invested in the brand at a valuation around $1 billion. In terms of solidifying The Row’s image as a true luxury player, the investors could not have been more on brand. “The Wertheimers and the Bettencourt Meyers are intimately familiar with the luxury industry, so this is an incredible vote of confidence,” New York-based luxury consultant Robert Burke said. Imaginary Ventures, whose co-founder Natalie Massenet launched Net-a-Porter, also joined the investment.

Interest in The Row and its designs continues to climb nearly two decades after its founding, confirming the concept’s long-term potential. “The Row is positioned as an extremely attractive opportunity for a long-term player” like the Wertheimers and Bettencourt Meyers families, Burke said. A cashmere dress from The Row retails for $8900, sweaters are priced between $1420 to $3590.

By targeting ultra-high-net-worth individuals, The Row is well positioned to navigate the general malaise affecting the luxury segment. Top-end players with strong ready-to-wear offers like Zegna and Brunello Cucinelli have continued to grow this year amid a broader slowdown for the segment, while harder-hit players like Kering emphasised difficulties selling to less wealthy “aspirational” clients. “If you’re collecting $3000 sweaters, fluctuations in the economy probably aren’t going to affect your discretionary income very much,” said Graves. On The Row’s website, there is no option to organise items by price. The Row saw increased brand momentum in recent seasons due to the “quiet luxury” discourse on social media, which expressed customers’ boredom with logo-driven merchandising. The Row has built its business almost entirely through women’s fashion — menswear remains a limited offer — and is sold through select wholesalers and just a handful of stores.

The brand has four retail locations: New York, Los Angeles, the Hamptons and London, with a Paris location announced last month. Pushing further into retail could fuel higher sales and profit, as the brand gains visibility in key shopping districts and reclaims its markup from wholesalers.

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