Milan Fashion Week Fires Up Catwalks despite Cautious Outlook

Milan is back in the limelight with the start of its Fashion Week, with 56 runway shows planned. GABRIEL BOUYS / AFP
Milan is back in the limelight with the start of its Fashion Week, with 56 runway shows planned. GABRIEL BOUYS / AFP
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Milan Fashion Week Fires Up Catwalks despite Cautious Outlook

Milan is back in the limelight with the start of its Fashion Week, with 56 runway shows planned. GABRIEL BOUYS / AFP
Milan is back in the limelight with the start of its Fashion Week, with 56 runway shows planned. GABRIEL BOUYS / AFP

The fashion set moves to Italy Wednesday for Milan Fashion Week, marked by a new designer at Moschino but held amid an uncertain outlook for luxury.
The women's runway shows from Fendi, Prada, Versace and Dolce & Gabbana, among many others, promise a dose of festivity and froufrou in Italy's northern fashion capital, AFP said.
Following fashion weeks in New York and London, Milan again has its moment in the limelight, with 56 runway shows through Sunday on its Fall/Winter 2024-2025 calendar.
But they come amid a backdrop of uncertainty in the global luxury fashion market.
Muted growth projections, inflation concerns, an economic slowdown in China and geopolitical risk loom large for the sector expected to expand globally by just three to five percent this year, according to McKinsey's State of Fashion report published in November.
That is below an estimated five to seven percent for 2023.
Italy's fashion sector -- which includes clothing and leather, shoes, jewelry, cosmetics and accessories -- grew four percent to nearly 103 billion euros ($110 billion) last year, according to estimates from the National Chamber for Italian Fashion.
The association's head, Carlo Capasa, said it was too early to know how 2024 will bode for the industry.
"It's a complex year, it will take resilience," Capasa told journalists earlier this month.
"We know there are three wars, European and US elections. It's a year of transition."
Glitterati gather
But frayed nerves are rarely on display in the front rows, as the glitterati gather for the jam-packed week of fashion's finest.

More than 100,000 people, including buyers, media and brand representatives, are expected for Fashion Week, a rise of 10 percent over last February, Capasa said.
High on the list for fashion watchers will be the debut collection on Thursday of Adrian Appiolaza for Moschino.
The Argentine designer, previously at Loewe, was named creative director of the irreverent, pop-influenced brand last month after his predecessor died just 10 days into the job.
Gucci veteran Davide Renne, who died in November, had been brought in after Jeremy Scott stepped down after a decade at the helm.
Founded by Franco Moschino, the label is known for playful, quirky creations often embellished with slogans -- such as "Gilt without Guilt" or "Good Taste Doesn't Exist" -- or riffing on iconic consumer brands from McDonald's to Barbie.
Debut collections are also expected from Walter Chiapponi at Blumarine -- the flirty, jeans-heavy brand previously led by Nicola Brognano -- and Matteo Tamburini at Tod's.
Chiapponi had been artistic director at Tod's since 2019, and when he left he was replaced by Tamburini, most recently head of ready-to-wear for Bottega Veneta.



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.