Low-cost E-commerce Rivals Shein and Temu Shelve US Court Cases

A model presents a creation by Indonesian fashion brand Artkea Stripes x IKYK  during the Jakarta Fashion Week 2024 in Jakarta, Indonesia, 26 October 2023. The fashion event runs from 23 to 29 October 2023.  EPA/ADI WEDA
A model presents a creation by Indonesian fashion brand Artkea Stripes x IKYK during the Jakarta Fashion Week 2024 in Jakarta, Indonesia, 26 October 2023. The fashion event runs from 23 to 29 October 2023. EPA/ADI WEDA
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Low-cost E-commerce Rivals Shein and Temu Shelve US Court Cases

A model presents a creation by Indonesian fashion brand Artkea Stripes x IKYK  during the Jakarta Fashion Week 2024 in Jakarta, Indonesia, 26 October 2023. The fashion event runs from 23 to 29 October 2023.  EPA/ADI WEDA
A model presents a creation by Indonesian fashion brand Artkea Stripes x IKYK during the Jakarta Fashion Week 2024 in Jakarta, Indonesia, 26 October 2023. The fashion event runs from 23 to 29 October 2023. EPA/ADI WEDA

Fierce rivals Shein and PDD Holdings-owned Temu have applied to end their legal fights with each other in the US, documents show, marking a truce even as a global market share battle between the low-price online platforms heats up.
Joint declarations were filed to courts in Chicago and Boston by lawyers representing the companies and their subsidiaries, requesting that two legal cases be dismissed "without prejudice" by their judges, Reuters reported.
The filings did not contain details on why they had decided to drop their complaints or whether any settlement had been made. Neither firm immediately responded to a request for comment on the filings on Friday.
Shein's lawsuit against Temu, filed last December in the US District Court for the Northern District of Illinois, alleged that Temu told social media influencers to make disparaging remarks about the fast-fashion retailer, and tricked customers into downloading the Temu app using "imposter" social media accounts.
In July, Temu filed its own lawsuit in Boston federal court, accusing Shein of violating US antitrust law in its dealings with clothing manufacturers.
Temu's complaint alleged Shein "forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu."
In previous statements, both firms denied any wrongdoing in the cases.
The two companies have shaken up the global retailing landscape with an ultra-fast fashion, low-price shopping model.
Shein, founded in China, and valued at $66 billion, sells fast fashion at rock bottom prices, including dresses priced at $10 and bike shorts for around $5. The company produces clothing, mainly in China, that is sold online in the US, Europe and Asia.
Temu, whose parent company PDD Holdings also owns Chinese shopping platform Pinduoduo, similarly sells low-priced clothing but is equally well known for stocking cheap headphones and home appliances.
According to a note from HSBC analysts published this week, Temu is targeting $16 billion in gross merchandising volume (GMV) in 2023, versus consensus estimates of $11 billion.
 



Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.