Altaz Capital becomes a shareholder in the Isto brand. Fashion from Príncipe Real will be worn in New York

Just in time for Christmas shopping in 2018, the men’s fashion brand Isto opened its first store in Palacete Ribeiro da Cunha, commonly known as Embaixada, in Príncipe Real, Lisbon. Six and a half years later, the company continues to prioritise the most glamorous neighbourhoods of the Portuguese capital – Amoreiras, Campo de Ourique and Chiado – but is preparing to “sew” higher and open new spaces in Madrid, London and New York.

Internationalisation into the biggest fashion capitals (only Paris and Milan remain) is possible thanks to new investment from Altaz Capital, which acquired a minority stake in Isto and strengthened the management team. Sérgio Massano and André Flórido, partners at Altaz, have also become managing partner and chief financial officer (CFO), respectively.

“By decision of all Isto shareholders, we have decided not to disclose the terms of the investment or the percentages they hold in the company. Altaz Capital will become an operational partner and significant shareholder. Isto Lda. will always remain the majority shareholder”, entrepreneur Pedro Palha, who founded the company with Vasco Mendonça and Pedro Gaspar, told ECO.

The strategic partnership aims to grow the business about 10 times over the next 30 months. “This growth will be accompanied by strong investment in technology, logistics and strengthening the connection and collaboration with the Portuguese textile business community. The quality of the products and the transparency of the business remain untouchable, where only Portuguese manufacturing is acceptable”, says the co-founder.

Despite entering the United Kingdom, the United States and Spain, in addition to Germany, where it already has a store (Berlin), the men’s fashion brand intends to have a “global footprint without forgetting its Portuguese roots and values” of transparency (disclosure of all values), timelessness, quality and national production. That is why it is also looking for a location in Porto, where it once had a pop-up store, for national expansion.

Last year, Isto had a turnover of €3.1 million and expects to close this year with €5 million in sales, mainly online, since e-commerce accounts for the majority (62%). That is why the company opened a job vacancy for a head of e-commerce in Lisbon at the beginning of August.

Turnover is increasing because Isto’s T-shirts and shirts are reaching other audiences beyond the Portuguese and tourists visiting Lisbon. They have been featured in international publications such as the Financial Times, which last summer visited the Somelos textile factory in Guimarães to see how the machines are programmed to weave only the amount of fabric needed for specific orders and ensure minimal waste.

Campo de Ourique becomes a “sewing workshop” in October

Autumn arrives with a new collection and a new strategy: repair. Isto’s fourth store, in the Lisbon neighbourhood of Campo de Ourique, is temporarily closed to be transformed into a repair shop in line with its “commitment to durability and circularity”.

The establishment will focus on sewing repairs and will accept both new and used products (from Isto and other brands) for mending, hemming, etc. The opening date is scheduled for 1 October, Pedro Palha reveals to ECO.