MILAN — Diesel on Monday said it has appointed Eraldo Poletto its new chief executive officer for North America, effective immediately.
Poletto reports to Massimo Piombini, the brand’s global CEO, and succeeds Patrick Valeo, who had joined the Italian brand at the end of April 2020.
The U.S. and Canada are key markets for Diesel owner Renzo Rosso, who is planning to further strengthen the brand’s presence in the region through the opening of new stores in strategic locations.
“In his new role, Eraldo will have the opportunity to capitalize on his long experience in the industry to drive the growth of our brand in the USA and Canada,” said Piombini. “His experience with leading fashion brands, combined with his vision and determination, will be invaluable resources for us.”
Poletto underscored his admiration for Diesel, “which created an innovative unconventional style before many others. I shall be taking on my new position in the [parent] OTB Group with great energy and also with a commitment to contribute to Diesel’s growth on the North American market at a time of great opportunities.”
His appointment reflects Rosso’s aim to raise the positioning of the brand, designed by Glenn Martens, as Poletto brings an experience in the luxury and retail sectors spanning three decades.
Poletto was appointed CEO and brand president of Stuart Weitzman, controlled by Tapestry Inc., in 2018, a role he held for two years.
Before that, he was CEO Of Salvatore Ferragamo, which he joined in August 2016 and exited in March 2018, where he aimed to reinvigorate the late founder’s original modernity, harmonizing everything with marketing and merchandising. He focused on reviewing the brand’s network of stores without changing the concept of the locations, but making adjustments to the layout or the design, all intended to improve functionality and performance. He wanted to simplify the collections and he pushed forward the launch of a new website to make it more functional and capable of being used as a social media tool.
Prior to Ferragamo, Poletto served as CEO of Furla from 2010 to 2016 and helped grow and globalize that family-owned brand.
He also has an extensive knowledge of the U.S. market. From 1997 to 2010 he served in a variety of roles at Retail Brand Alliance, then-parent of Brooks Brothers, including as president of strategic development and international business and chief merchandising officer.
In addition to Diesel, OTB comprises Maison Margiela, Marni, Jil Sander, Viktor & Rolf and a minority stake in Amiri, as well as production arms Staff International and Brave Kid.
Last year, Rosso told WWD that North America accounts for around 10 percent of group sales and is expected to see a growth rate almost double of that forecast for the rest of OTB globally. In a three-year business plan, OTB is expected to report annual growth in revenues of 15 percent, with North America forecast to increase 27 percent year-on-year.
Investments totaling $250 million are planned in the next three years and “a big portion” of that amount is earmarked for the U.S., the entrepreneur said.
In Miami, Diesel will open 143 contract apartments with Wynwood, which will be completed in a few years, as the work was stalled by the pandemic last year.
In 2020, as reported, OTB’s consolidated sales amounted to 1.31 billion euros, a 14.3 percent decrease compared with 1.53 billion euros in 2019, the year the company was back in the black.
Diesel, after a reorganization and repositioning of its retail and wholesale channels, continues to be a core business for OTB, accounting for more than 50 percent of sales.
In November, Rosso said he was expecting OTB to reach revenues of 1.5 billion euros in 2021 and that the initial public offering, which he recently hinted at, is now expected to take place in 2024. OTB preliminary sales for 2021 have not been reported yet.
Rosso also pointed to the importance of the online channel, which for Diesel accounts for 15 percent of sales, through the direct platform and for 15 percent through indirect sales.