Louis Vuitton Braves Rain on Its Italian Island Paradise

Bad weather was likely not top of mind when the storied luxury label chose Isola Bella as the venue for its Cruise 2024 collection. GABRIEL BOUYS / AFP
Bad weather was likely not top of mind when the storied luxury label chose Isola Bella as the venue for its Cruise 2024 collection. GABRIEL BOUYS / AFP
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Louis Vuitton Braves Rain on Its Italian Island Paradise

Bad weather was likely not top of mind when the storied luxury label chose Isola Bella as the venue for its Cruise 2024 collection. GABRIEL BOUYS / AFP
Bad weather was likely not top of mind when the storied luxury label chose Isola Bella as the venue for its Cruise 2024 collection. GABRIEL BOUYS / AFP

Louis Vuitton valiantly battled pounding rain on an Italian island paradise while presenting its cruise collection Wednesday night, the weather sending celebrity guests underneath umbrellas and dampening a hairdo or two.

But when you're the flagship brand within the powerhouse LVMH portfolio, with a guest list that includes Catherine Deneuve, Cate Blanchett and Emma Stone, what's a little rain?

Bad weather was likely not top of mind when the storied luxury label led by Nicolas Ghesquiere chose the tiny Isola Bella, a jewel of an island in the azure waters of Lake Maggiore, as an appropriately jaw-dropping venue for its Cruise 2024 collection, AFP said.

But the rain arrived nonetheless, forcing the show originally planned for the island's formal terraced gardens to take place within the baroque Palazzo Borromeo, still owned by the family of the same name whose noble ancestry dates to the 13th century.

"It's the one thing Nicolas can't control, is the weather," the editor-in-chief of Vogue Thailand, Ford Laosuksri, told AFP after the show, as guests lingered to sip bubbly while hoping (in vain) for the rain to stop.

Laosuksri was wearing a crocheted floral top and sandals -- an endearing if not foolhardy gesture amid the steady rain.

"I didn't want to ruin my velvet shoes," he confided.

Ghesquiere, Louis Vuitton's artistic director since 2013, sent models through the ornate, high-ceilinged rooms of the 17th-century palazzo in eclectic, futuristic creations for which he is celebrated.

Some looks recalled scuba gear adorned with avant garde ruffling, while others felt like fencers' uniforms, protective with thick quilting over the chest.

Fabric was cinched tight like an accordion at the bodice of a sleeveless dress with color blocks in royal blue and yellow gold, imparting texture and movement, while a shiny black dress came with a drawstring neckline that called to mind a popular handbag by the brand.

Sweaters became more airy with a translucent stripe at the midriff, while three chiffon gowns cut on the bias -- in dusty pink, sea green and baby blue -- sported exaggerated puffy sleeves worthy of the Edwardian age.

"It was beautiful, it was flowy but still powerful," said Philippine actress Heart Evangelista.

From fishing to fashion

Louis Vuitton's event was the first-ever fashion show allowed on Isola Bella, a former fishing village transformed by the Borromeos into a sumptuous paradise fit for royalty.

Kings, queens and emperors have been guests at Palazzo Borromeo over the years, including Queen Victoria, Napoleon and Josephine, and even Prince Charles and Princess Diana in 1985.

On Wednesday celebrities and influencers from around the world -- including US actress Jennifer Connelly and Felix from K-Pop's Stray Kids -- descended on the island.

Trying not to slip, guests took cover under the transparent umbrellas provided by the brand before escaping into the palazzo.

Following the show, some guests stood on benches and posed for pictures under the watchful gaze of centuries of Borromeo elders whose portraits line the walls.

Cruise collections are designed to offer warm-weather wardrobes for jet-setters lucky enough to escape to sunny locales during the drab winter months. In recent years, they have become destination events, with brands choosing more and more exotic spots to backdrop their luxury looks.

Louis Vuitton's show comes on the heels of Dior's, which showed a Frida Kahlo-inspired cruise collection in Mexico City Saturday, and Chanel's earlier this month at Hollywood's Paramount Studios.



LVMH Shares Drop after Missing Second-quarter Estimates

A man walks past a shop of fashion house Dior in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo Purchase Licensing Rights
A man walks past a shop of fashion house Dior in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo Purchase Licensing Rights
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LVMH Shares Drop after Missing Second-quarter Estimates

A man walks past a shop of fashion house Dior in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo Purchase Licensing Rights
A man walks past a shop of fashion house Dior in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo Purchase Licensing Rights

Shares in LVMH (LVMH.PA) fell as much as 6.5% in early Wednesday trade and were on track for their biggest one-day drop since October 2023 after second-quarter sales growth at the French luxury goods giant missed analysts' consensus estimate.

The world's biggest luxury group said late Tuesday its quarterly sales rose 1% year on year to 20.98 billion euros ($22.76 billion), undershooting the 21.6 billion expected on average by analysts polled by LSEG.

At 1000 GMT, LVMH's shares were down 4.5%.

The earnings miss weighed on other luxury stocks, with Hermes (HRMS.PA), down around 2% and Kering (PRTP.PA), off 3%.

Kering is scheduled to report second-quarter sales after the market close and Hermes reports on Thursday, Reuters reported.

Jittery investors are looking for evidence that the industry will pick up from a recent slowdown, as inflation-hit shoppers hold off from splashing out on designer fashion.

JPMorgan analyst Chiara Battistini cut full year profit forecasts by 2-3% for the group, citing softer trends at LVMH's fashion and leather goods division, home to Louis Vuitton and Dior.

"The soft print is likely to add to ongoing investors’ concerns on the sector more broadly in our view, confirming that even best-in-class players like LVMH cannot be immune from the challenging backdrop," said Battistini in a note to clients.

The weakness of the yen, which has prompted a flood of Chinese shoppers to Japan seeking bargains on luxury goods, added pressure to margins, another source of concern.

Equita cut 2024 sales estimates for LVMH by 3% - attributing 1% to currency fluctuations - and lowered its second half organic sales estimate to 7% growth from 10% growth previously.

The lack of visibility for the second half beyond the easing of comparative figures - as the Chinese post-pandemic lockdown bounce tapered off a year ago - is unlikely to improve investor sentiment to the luxury sector, Citi analyst Thomas Chauvet said in an email to clients.

"No miracle with the luxury bellwether; sector likely to remain out of favour," he wrote.

Jefferies analysts said the miss came as investors eye Chinese shoppers for their potential to "resume their pre-COVID role as the locomotive of industry growth and debate when Western consumers will have fully digested their COVID overspend".

LVMH shares have been volatile since the luxury slowdown emerged, and are down about 20% over the past year, with middle-class shoppers in China, the world's No. 2 economy, a key focus as they rein in purchases at home amid a property slump and job insecurity.

LVMH offered some reassurance, with finance chief Jean-Jacques Guiony telling analysts during a call on Tuesday that Chinese customers were "holding up quite well," while business with US and European customers was "slightly better".