Discussions about the fashion industry thread

[LA Guy]

Saw this in Business of Fashion (BoF) today:https://www.businessoffashion.com/articles/luxury/kering-sales-fall-16-percent-gucci-down-sharply/

"Kering Pounded by Luxury Slowdown, Warns on Profit

Sales at the French group fell 16 percent in the third quarter as a market-wide downturn hit hard. At flagship brand Gucci, where revenue fell 25 percent, management is exploring store closures while betting on a revamped handbag programme to jump start demand."

Top line takeaways:

Luxury sales are down overall, worst at Kering (-45% YoY in operating revenue) but also including at LVMH (5% decrease). Even Hermes, traditionally bulletproof. is looking at lowest single digit growth in forever.

Causes include:
rising prices causing even the wealthy (and Styleforum's Manhattan upper middle class, taking in a measely $1M or so in gross income) to reconsider luxury purchases

China's post-pandemic economic recovery remains lacklustre, with depressed property values and high youth unemployment.

In the USA, malaise about the upcoming election is a strong dampener on luxury purchases.

Lingering inflation and geopolitical crises have decrease the luxury appetite of customers in both in the EU and USA

 

[styleforumfan]

For real? LOL...


Capri stock craters 46% after judge blocks $9.5 billion Tapestry deal

Capri Holdings (CPRI), the parent company of Michael Kors and Jimmy Choo, saw shares plunge around 45% in after-hours trading on Thursday after a US judge blocked its pending $8.5 billion merger with Coach owner Tapestry (TPR).

In a court filing obtained by Yahoo Finance, US District Judge Jennifer Rochon ruled that "antitrust has come into fashion," arguing a merger between the two fashion powerhouses "will substantially lessen competition in the market for accessible-luxury handbags."

Tapestry and Capri had announced their proposed merger last year. The combination would have brought together six high-profile fashion brands under one roof: Tapestry’s Coach, Stuart Weitzman, and Kate Spade with Capri’s Versace, Jimmy Choo, and Michael Kors.

https://finance.yahoo.com/news/capri-stock-craters-46-after-judge-blocks-85-billion-tapestry-deal-211714499.html

 

[Mariokartfever]

.

 

[cb200]

The Esprit reboot sounds like it died. Too bad. Gen-X nostalgia didn't carry the idea too far I guess. The Esprit girls from the eighties and nineties are probably well into their Eileen Fisher coastal grandma era. To bad. I Liked the story of the brand being tied to the North Face.

Esprit US subsidiaries file for bankruptcy

The Chapter 7 notices come in the wake of more than a dozen similar filings from Esprit Holdings affiliates around the world.

www.retaildive.com

Proposed Tariff increases sounds like it's now baked in price increases for US retailers and brands importing finished goods.

https://www.washingtonpost.com/business/2024/10/30/companies-tariffs-trump-prices/

The de minimis exception for small shipments is already getting looked at, how that's applied is certainly going to impact consumers and retailers competing with online.
https://www.commerce.gov/news/press...tatement-new-actions-address-surge-de-minimis

Time will tell what happens to the FABRIC act and if anything changes there as far as US domestic production and worker protection. Maybe?

https://www.congress.gov/bill/118th-congress/senate-bill/2817

Interesting times.