Luxury online fashion marketplace Cult Mia has announced strong sales in 2024 with plans for fast growth this year following last autumn’s seed funding round.
The London-based business said its top line virtually tripled last year with net revenue up 191%, beating its forecasts by 4%.
In the last 12 months, its strong performance was helped by average order values (AOV) rising 9% to £564, which it also said beat the AOVs of both Farfetch and Net-A-Porter, “reinforcing its alignment with the expectations of high-end consumers”.
The company also achieved a “significant” reduction in return rate to 15% and maintained discounts at only 7% of gross merchandise value, “underscoring its ability to drive profitability without heavy discounting — rarely seen in the luxury fashion space”.
2024 was also key for the company seeing “a breakthrough performance in the Middle Eastern market”, where gross merchandise value grew more than fourfold year on year, making it the fastest-growing region for the company. The US followed closely with a 2.1 times year on year increase in gross merchandise value, “demonstrating the brand’s ability to scale efficiently in high-potential markets”.
Last October, almost a year after announcing one seed funding milestone, it announced another, saying its seed funding drive had by then raised $5 million/£4.5 million.
The figure was achieved as it raised an extra $2 million in a round including existing investors (Fuel Ventures with participation from Morgan Stanley and David Wertheimer of the family that owns Chanel). Importantly too, the new round also included H&M Group Ventures.
Founder and CEO Nina Briance said that for 2025, the business is “focusing on key areas such as enhancing its technology platform to deliver a seamless and more personalised customer experience, deepening its presence in its core two markets (US and Middle East), and staying true to its commitment to share sustainable and ethical practices, to incentivise its brand partners to make improvements on their ESG journeys”.
It also aims to accelerate its momentum “by continuing to attract and curate the best emerging talent”. With over 250 independent designers applying each month and only 10% being accepted, the company “aims to grow its exclusive portfolio beyond the 400 brands it has already onboarded across 46 countries. With 39% of its products available exclusively on Cult Mia and an impressive 98% retention rate for brands, the company is poised to strengthen its position as the go-to destination for unique, high-quality fashion”.
And it wants to drive customer acquisition following a 146% year-on-year increase in 2024.
Briance added: “2025 is shaping up to be a transformative year for Cult Mia as we continue to challenge industry norms and redefine the luxury fashion experience. With the incredible support from our investors and the momentum we’ve built over the last year, we’re focused on scaling our platform, empowering emerging designers, and setting a new standard for ethics and inclusivity in fashion. We’re excited to build on our success in markets like the US and Middle East, and take bold steps towards our vision of making Cult Mia the go-to destination for curated, values-driven luxury.”
Recovering South Korean shopaholic-turned-climate activist Lee So-yeon used to buy new clothes almost daily — until a $1.50 winter coat triggered an awakening that stopped her shopping entirely.
While looking at the ultra-cheap padded jacket at an H&M shop in the United States, where she was working at the time, Lee asked herself how any item of clothing could be sold so cheaply.
The 30-year-old embarked on a deep dive into fast fashion production methods and was horrified at the human, social and environmental toll hyperconsumerism is having on the planet — and on the mental health of women who make and buy cheap clothes.
“I used to buy one new outfit each (working) day of the week,” Lee told AFP, adding that each item from major high street retailers would typically cost less than a dollar.
But the reason the clothes are so cheap, Lee learned, is because the women who sew for companies are paid little, while the business model itself is causing significant environmental harm.
Lee stopped buying any new clothes — and has not purchased a single fast fashion garment since her epiphany around six years ago.
Her much more compact wardrobe consists of used items that she received from friends and family, including a vintage leather jacket that once belonged to her mother.
Unlike fast fashion items, which are often designed to be thrown away after just a few wears, each piece is irreplaceable because it carries a unique story and history, she said.
“Ultimately, the most eco-friendly clothes are the ones already in your wardrobe,” said Lee.
Break the cycle
Lee now organises clothing swaps with her friends and family, and has written a book to promote the idea of valuing garments for “the story behind it,” rather than chasing ephemeral trends.
She is part of a small but growing global movement seeking to promote second-hand clothing and help people — especially women — opt out of the cycle of over-consumption.
The app Lucky Sweater provides a platform for users to trade items from their closets with each other, focussing on sustainable brands, founder Tanya Dastyar told AFP.
“We’re programmed to believe the only way to express my fashion or show that I’m beautiful or trendy… is new outfits,” Dastyar said.
“But you can still be fashionable and feel good and look great and not have to do that,” she said, adding that although trading clothes did not have the same quick dopamine hit as making a fast-fashion purchase, it was far more rewarding over time.
The app’s growing uptake indicates that people are hungry to shift their relationship with clothing and consumerism, she said.
People realise: “I don’t have to follow trends and I can just dress in a way that feels comfortable to me,” she said. “Is that like a mass market thing? No. But do I feel like it can be a movement? Yes.”
For Lee, breaking the cycle of cheap clothing consumption helped her improve her mental health.
As a teenager, she would worry about what to wear on school trips — when uniforms were not required — at least a month in advance and would go shopping to ease her fears.
“I felt a lot of pressure about how others would see me,” she told AFP.
But learning about Bangladesh’s 2013 Rana Plaza tragedy — one of the world’s worst industrial disasters that killed more than 1,130 garment factory workers, most of them young women — was a turning point.
The factory workers died making clothes for “women like me”, Lee said.
No second-hand?
The global fashion industry is one of the most polluting, accounting for up to 10 percent of greenhouse gas emissions, according to World Bank estimates.
Most modern clothes are made of synthetic materials like nylon and polyester, which are essentially plastic and do not biodegrade in landfills, industry data shows.
Keeping clothes out of landfills can help, but in South Korea, many still avoid used garments, said Kim Dong-hyun, who runs a used clothing export factory.
“People often don’t look favourably on someone wearing used clothes because they are seen as unwanted items,” Kim told AFP, noting he has found dirty diapers and food waste in the collection bins.
South Korea is the fifth largest exporter of used clothing in the world — and activists say many garments are essentially dumped in developing countries, which lack the capacity to process them.
At Kim’s second-hand clothing factory in Paju, outside Seoul, a mechanical claw categorised piles of used clothes to be exported overseas.
“Many people treat the clothing collection bin as just a trash can,” Kim said.
Danish jewellery maker Pandora said on Wednesday that its growth and profit margin this year would be lower than last, as it expects sluggish demand in Europe and slowing growth in Germany after a strong run.
Pandora, known for its charm bracelets, reported operating profit in line with expectations for the key holiday shopping quarter, but said Black Friday discounts had driven a bigger share of sales, weighing slightly on profitability.
The world’s biggest jewellery company by volume said it sees 7-8% organic growth in 2025. Organic growth for 2024 was 13%, better than the company’s guidance of 11-12%.
Pandora reported fourth quarter comparable sales growth of 9% in the U.S., helping drive 6% growth overall. Germany’s comparable sales grew by 28%, slower than the 42% growth in the third quarter, while revenues in France and Italy both fell.
“We had a very strong fourth quarter in the U.S. and Canada,” Lacik said in an interview. “It’s a stronger consumer demand and sentiment in the U.S. than we see in Europe, and one would probably think that that’s going to continue into this year.”
Pandora said performance in Italy and France was impacted by economic challenges and an “intense promotional environment” – competitive pressure to lower prices and discount products.
Fourth-quarter operating profit rose to DKK4.15 billion from a year-earlier DKK 3.67 billion, against a mean forecast of DKK 4.10 billion in an analyst poll provided by Pandora. Pandora’s operating profit margin was 34.7%, slightly above analysts’ average forecast.
The company expects an operating profit margin of around 24.5% in 2025, down from 25.2% last year.
Pandora, whose shares recently hit a record high, also launched a new share buy-back programme for up to DKK4 billion.
By securing a fragrance licensing agreement with Extend Beauty, the Parisian fashion house Agnès b. has made its long-awaited return to the world of perfumery. Thirty-eight years after the debut of its iconic fragrance “le b.,” this new partnership introduces a fresh creation available in two concentrations: an eau de toilette and an eau de parfum.
“Crafted by senior perfumer Isaac Sinclair, these fragrances capture Agnès b.’s personal inspirations and olfactory memories,” the house said in a statement. The debut collection is set to launch in fall 2025, available at select retailers through Extend Beauty as well as at Agnès b. boutiques in France and internationally.
Extend Beauty was founded in 1992, and it develops and distributes fragrances for various brands, including Le Coq Sportif. Its perfumes are now available in over 80 countries worldwide.