Gucci parent Kering expects profits to plummet in first half of 2024. After a drop in sales in the first quarter, owner Pinault admits that the luxury group’s performance has deteriorated significantly. 45% lower profits Kering, the parent company of luxury brands such as Gucci and Balenciaga, predicts that operating profit could fall by as much as 45% in the first half of the year compared to the same period last year. Performance worstened significantly in the first quarter, top executive François-Henri Pinault told the Financial Times. Although the group had expected challenging starts to t ..read more

LVMH expects slow years for the luxury sector. Last quarter, sales rose a mere 3%, due to reluctant Chinese customers and a decline after the Covid boost years. Over its peak The parent house of Louis Vuitton and Dior sees growth slowing due to waning demand for luxury goods. Group sales rose 3% organically to 20.7 billion euros, but negative currency effects pulled sales down another 4%. It is a remarkable turnaround after years of strong growth, when luxury shoppers went “revenge shopping” after and between coronalockdowns. In the key Asian market, excluding Japan, comparable sales fell 6 ..read more

Ailing fashion chain Superdry announces a drastic restructuring: it will cut rents and costs, increase its capital and disappear from the stock exchange. Capital increase For several months now, Superdry has been fighting for its survival: the retailer had to swallow a double-digit decline in sales last year and also saw its losses double despite a cost-cutting plan. Now the brand is announcing a major restructuring plan for the next three years. A do or die plan, British media report, as without intervention it may risk going into administration. The company is renegotiating rents for its sho ..read more

Huge cotton plantations are popping up in the Brazilian savannah, which also supply fashion giants like Inditex and H&M. Although labelled as ‘Better Cotton’, the Brazilian cotton goes hand in hand with deforestation and pollution, according to research. Increasing deforestation New research by British NGO Earthsight tracked 816,000 tonnes of cotton shipped from Brazil’s Cerrado nature reserve to eight Asian textile mills. Ultimately, a significant proportion of that – in the form of 250 million garments – ended up in the shops of the world’s biggest fashion groups. Particularly ..read more

Fast Retailing (Uniqlo) has achieved remarkable sales and profit growth in the first half of its fiscal year 2024. The Japanese apparel retailer performed particularly well in Europe and North America. Slower at home In the period from 1 September 2023 to 29 February 2024, sales grew by 9 % to 1.6 trillion Japanese yen (9.7 billion euros). This growth mainly came from strong sales outside Japan, which rose 17 % to 883.9 billion yen. The 2 % decline in sales in the Japanese home market was more than offset by record performance fr ..read more

Esprit is “in discussion” with an investor who would like to acquire its European operations. A deal with “an international private investment group” is close, the company reports. Restructuring in Europe It may be too late for the Belgian and Swiss shops, but a last-minute saviour may have been found for Esprit’s other European branches. The group, which is listed in Hong Kong but registered in Bermuda, Wednesday that it expects a cooperation proposal to enter “a potential partnership with the Company, in particular the European business”. Esprit claims to have held talks with several interes ..read more

The new owners of Galeria Karstadt Kaufhof, which for now also includes Inno, would retain some 70 department stores. Although much will still depend on the property owners and creditors. Entrepreneurial courage Hudson’s Bay’s owner, investment group NRDC, is not taking over Galeria Karstadt Kaufhof alone: US billionaire Richard Baker is forming a consortium with German entrepreneur Bernd Beetz and his vehicle BB Kapital for the occasion. After the takeover, it will also be the 73-year-old Beetz who will lead the department store group as chairman, with the existing management team and CEO Oli ..read more

Galeria Karstadt Kaufhof has finally found a new owner, which surprisingly turns out to be a former owner as well. Hudson’s Bay owner Richard Baker has today confirmed the acquisition of the German department store group. Old acquaintance The American billionaire, who has owned the Hudson’s Bay Company since 2008, is now also buying the insolvent department store group through his investment company NRDC. The rumour was first launched yesterday, but it has been confirmed today by administrator Stefan Denkhaus to German newspaper Handelsblatt. For Baker, it is an unlikely return to Europe ..read more

Two weeks after the Swiss Esprit branch, its Belgian counterpart follows suit. Filing for bankruptcy means fifteen stores are to close and 148 jobs will be axed. Ten franchised stores and the webshop will remain open. Lasting problems Esprit has notified the Hong Kong stock exchange of its plans, saying that the Belgian bankruptcy had become “inevitable” as part of a major restructuring, Belgian newspaper De Tijd reports. The move is reportedly due to the combination of a slower economic growth, rising energy costs, a negative consumer confidence in Europe and high rents for oversized sto ..read more

Levi’s has announced significant job cuts at its European headquarters in Machelen (near Brussels). 42 out of 250 jobs will disappear as the jeans brand is carrying out a global reorganisation. Two-year cost-cutting plan While the American jeans label’s sales stayed stable at 6.2 billion dollars (just under six billion euros) last year, profits plummeted by over 20 % to 555 million dollars (half a billion euros). That forced Levi’s to announce that one in eight administrative positions worldwide will disappear as part of a two-year cost-cutting plan. This year, th ..read more