Shares in Hermès International dipped in morning trading in Paris on Thursday after the French luxury house reported first-half results that fell below analysts’ expectations, as the widespread closure of stores due to the coronavirus pandemic sharply impacted its business and profitability.
Like other French luxury companies that reported second-quarter results this week, Hermès saw revenues plummet despite strong growth in mainland China and robust online sales. Its sales declined 41.3 percent to 982.5 million euros in the three months ended June 30, representing a drop of 41.5 percent in comparable terms.
Net income in the first six months of the year fell 55.6 percent to 335 million euros. Operating profit was down 53.2 percent to 535 million euros, with the operating margin sliding to 21.5 percent from 34.8 percent in the same period a year ago, weighed down by the fact that the company manufactures many of its goods. Continue reading
LVMH Moët Hennessy Louis Vuitton said net profit plummeted 84 percent in the first six months of the year, although it forecasts a gradual recovery in the second half, supported by a strong recovery in China during the second quarter.
Bernard Arnault, chairman and chief executive officer of LVMH, said the group had shown “exceptional resilience” during the health crisis. “While we have observed strong signs of an upturn in activity since June, we remain very vigilant for the rest of the year,” he said in a statement.
“Thanks to the strength of our brands and the responsiveness of our organization, we are confident that LVMH is in an excellent position to take advantage of the recovery, which we hope will be confirmed in the second half of the year, and to strengthen our lead in the global luxury market in 2020,” he added. Continue reading
Gigi Hadid shares her backstage photos in Miu Miu Campaign. Proximity is now something of a nostalgic concept, given social-distancing protocols. It’s also the clever subtext of Miu Miu’s Fall campaign, which was shot before, during and after coronavirus lockdowns and has an intimate, DIY feel. Continue reading
Gianfranco Gianangeli joins the Paris-based fashion house Margiela after stints at Givenchy, Prada and Bottega Veneta
Gianangeli joins the Paris-based fashion house from his family-owned, namesake knitwear manufacturer in Perugia, Italy. Before that, he was global retail director at Givenchy and associate international director at Prada. He also worked for several years at Bottega Veneta in various merchandising positions and as that brand’s regional vice president in Japan.
Gianangeli joins a fast-growing brand powered by the creative vision of John Galliano, who recently documented the making of his wet-look Margiela couture dresses and diced-and-spliced tailoring in a mesmerizing 50-minute film with Nick Knight. Continue reading
Milan Digital Fashion Week Scores Highest Among European Fashion Capitals. The combined earned media value generated online by the London, Paris and Milan fashion weeks amounted to 10.7 million euros.
The first edition of Milan Digital Fashion Week closed on July 17 with a bang. Although observers have been pointing the online traffic generated by the London, Milan and Paris fashion weeks sent a reassuring message to the industry, forced to forgo physical events for the most part at least until September.
In particular the Milan showcase, which kicked off on July 14 and featured brands such as Prada, Ermenegildo Zegna and Gucci, among others, had the highest impact amassing 6.24 million euros in EMV, followed by Paris, with an EMV of 2.68 million euros and London Fashion Week that generated 1.81 million euros, or 17 percent of the total. The study took into consideration the July 9 to 13 period for Paris, excluding the previous days dedicated to haute couture collections. Continue reading
A discreet, yet pivotal creative talent at Hermès International that some insiders describe as its;secret weapon is exiting the brand, bad bosses never keep good employees, Goodbye Hermés hello Kering.
Bali Barret, artistic director of the women’s product universe, has submitted her resignation and will exit the French house sometime this fall.
Practically unknown to the general public, and familiar to relatively few in the fashion world, Barret’s profile is somewhat akin to Alessandro Michele, who toiled behind the scenes for years at Gucci, while being responsible for products that generate the lion’s share of brand revenues.
Barret joined Hermès in 2003 as artistic director of its silk department, where she recruited street artists and other young creatives to bring fresh ideas to the category. She was promoted to her current position in 2009, giving her purview over all women’s departments, including leather goods, rtw, footwear, silks, jewelry, watches, beauty and fashion accessories.
According to insiders, said to be fiercely loyal to Barret’s leadership and design vision, she helped ;revolutionize; Hermès by modernizing its products and processes, bringing much-needed oxygen to a heritage brand with a conservative style streak. Continue reading
With safety measures in place, fashion weeks in these Asian fashion capitals will return to physical showcasing in October. Shanghai, Tokyo, Seoul and Beijing Fashion Weeks to Return.
As a few brands are beginning to do physical shows again at the end of the Spring 2021 men’s wear season, fashion weeks in Shanghai, Tokyo, Seoul and Beijing, where the coronavirus pandemic has been largely contained, are planning to press ahead with fully fledged physical fashion shows this October.
Return on Oct. 8, a spokesperson for the Shanghai Fashion Week Committee told. It hosted the world’s first online fashion week in partnership with Tmall amid lockdowns in March with mix results, but the livestreaming and selling component will be integrated into the physical fashion week to enable brands to have an omnichannel presence with both the trade audience and the public. Continue reading
Sales at Compagnie Financière Richemont nearly halved in the first quarter to 1.99 billion euros, despite double-digit growth in China fueled by jewelry and fashion. Sales fell 47 percent in the three months to June 30 due to store and workshop closures, anemic tourism and a lack of appetite for hard and soft luxury worldwide during the pandemic.
China was the outlier, growing 49 percent in the period. As a whole, the Asia-Pacific region was down 29 percent, with sales of 1.01 billion euros, and was Richemont’s largest market in the period.
In Europe, sales fell 59 percent to 436 million euros, with all markets impacted by public health protection measures, as well as by subdued local demand and a lack of international tourism. In the Americas region, sales were down 61 percent to 277 million euros, while in Japan they fell 64 percent to 112 million euros.
The Middle East and Africa region fared slightly better, with sales falling 38 percent, partly reflecting advanced purchases in anticipation of Saudi Arabia’s VAT increase on 1 July. Continue reading
For her last collection as the solo Prada creative director starting from September she will be joined at the creative helm by Raf Simons Miuccia Prada let five artists interpret her spring effort through five short videos, offering different interpretations and takes on the men’s and women’s lineup.
The message, The pandemic, the economic crisis, the social tensions spreading around the globe can’t leave anyone indifferent, and cannot leave a sensitive designer like Prada unresponsive.
This is a moment that requires some seriousness, a moment to think and to reflect on things. What do we do, what is fashion for, what are we here for? What can fashion contribute, to a community?”
In keeping with her commitment, the designer embraced an unfussy yet highly sophisticated approach, minimal yet emotional. Combining function and aesthetics, she proposed the alpha and the omega of the brand’s fashion lexicon, exuding no nostalgia, only contemporary desirability.
Touches of Nineties minimalism emerged along with a subtle Sixties vibe, but Prada really focused only on what is relevant today, for boys and girls, men and women, living in our own world, with its joys and its limits. Continue reading
The administration of President Trump said late Friday that it would impose 25 percent duties on $1.3 billion worth of French fashion goods, the response to a digital services tax in France that impacts companies such as Amazon, Apple, Google and Facebook.
The office of U.S. Trade Representative Robert Lighthizer said it would delay implementation of the action for up to 180 days if “the Trade Representative determines that substantial progress is being made, or that a delay is necessary or desirable to obtain U.S. rights or satisfactory solution.”
That gives the U.S. and France until Jan. 6 to hold “bilateral and multilateral discussions that could lead to a satisfactory resolution of this matter,” the USTR said. Continue reading
Virgil Abloh said on Thursday he has raised $1 million for a scholarship fund for Black fashion students.
The founder of luxury streetwear label Off-White and artistic director of men’s wear at Louis Vuitton has entered a long-term partnership with the Fashion Scholarship Fund to launch the Virgil Abloh “Post Modern” Scholarship Fund, which is endowed with a personal donation from the designer and matching funds from his partners Evian, Farfetch, Louis Vuitton and New Guards Group. The sum will provide scholarships to between 100 and 200 students of academic promise of Black, African American, or African descent.
“I was a student on a campus that was largely not as diverse as the world is. And it4s important to set up this foundation specifically for Black students who may feel like in the industry of fashion, they don4t see many people that they can identify with,” he added. Continue reading