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Inditex’s Zara to Launch Second-Hand Platform in France on Sept 7

The Zara clothing store logo is seen at the entrance of a store in Brussels, Belgium November 28, 2022. REUTERS/Yves Herman/File Photo Acquire Licensing Rights
The Zara clothing store logo is seen at the entrance of a store in Brussels, Belgium November 28, 2022. REUTERS/Yves Herman/File Photo Acquire Licensing Rights
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Inditex’s Zara to Launch Second-Hand Platform in France on Sept 7

The Zara clothing store logo is seen at the entrance of a store in Brussels, Belgium November 28, 2022. REUTERS/Yves Herman/File Photo Acquire Licensing Rights
The Zara clothing store logo is seen at the entrance of a store in Brussels, Belgium November 28, 2022. REUTERS/Yves Herman/File Photo Acquire Licensing Rights

Spanish fashion retailer Zara will expand its service to sell, repair or donate second-hand clothes in France from Thursday, its owner Inditex (ITX.MC) said on Wednesday.

The service, which will be available through Zara's stores, its website and a mobile app, already exists for its British customers since last October. The company's chief executive Oscar Garcia Maceiras has said it will be launched in Germany also this year.

The company aims to extend the life of customers' Zara clothes, contribute to the reduction of waste and the consumption of new raw materials, it said in a statement, Reuters reported.

Zara has also said 40% of clothing pieces will be made with recycled fibres by 2030 and it is backing charities such as Moda Re which manage textiles waste. The company seeks to reduce its carbon emissions by 50% by 2030 and by 90% by 2040.

Zara is following other fast fashion brands such as its main competitor H&M (HMb.ST) in offering products for resale at a time when the global second-hand apparel market is growing.

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Fashion

Kering Posts 11% Drop in Q2 Sales, Sees Weak Second Half

The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
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Kering Posts 11% Drop in Q2 Sales, Sees Weak Second Half

The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)

Kering reported a bigger-than-expected drop in second-quarter sales and forecast a weak second half, as the French luxury group struggles to revive its key label Gucci and worries grow about a prolonged downturn in high-end spending.

Sales at the French luxury group which owns labels Gucci, Boucheron and Balenciaga, fell to 4.5 billion euros ($4.9 billion), an 11% drop on an organic basis, which strips out currency effects and acquisitions.

The figure was below analyst expectations for a 9% drop, according to a Visible Alpha consensus.

It also said second-half operating income could fall by around 30%, following a 42% drop in the first half.

Sales at Gucci fell 19%, showing no improvement from the first quarter, and below analyst expectations for a 16% decline, according to a Visible Alpha consensus.

Kering has been revamping Gucci, the century-old Italian fashion house which accounts for half of group sales and two-thirds of profit.

Minimalist designs from new creative director Sabato de Sarno, which began trickling into stores earlier this year, are key to the design reset and push upmarket, in a bid to cater to wealthier clients who are more immune to economic headwinds.

Kering chief financial officer Armelle Poulou told reporters that the designs had been well received and the rollout was on track.

But the efforts have been complicated by a downturn in the global luxury market, while China's rebound - traditionally Gucci's most coveted market - was clouded by a property crisis and high youth unemployment as Western markets came down from a post-pandemic splurge.

Earnings from sector bellwether LVMH on Tuesday missed expectations as sales rose 1%, offering few signs that a pickup is around the corner, sending shares in luxury goods companies down on Wednesday. Kering traded at its lowest level since 2017.