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Chanel Breaks with Designer Virginie Viard

Virginie Viard took over from her mentor Karl Lagerfeld. Christophe ARCHAMBAULT / AFP
Virginie Viard took over from her mentor Karl Lagerfeld. Christophe ARCHAMBAULT / AFP
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Chanel Breaks with Designer Virginie Viard

Virginie Viard took over from her mentor Karl Lagerfeld. Christophe ARCHAMBAULT / AFP
Virginie Viard took over from her mentor Karl Lagerfeld. Christophe ARCHAMBAULT / AFP

French fashion house Chanel announced the departure of its artistic director, Virginie Viard, on Thursday, despite hitting record sales under her leadership.
Viard, 62, replaced legendary designer Karl Lagerfeld at the storied label following his death in 2019, having worked alongside him for 20 years, AFP said.
"Chanel confirms the departure of Virginie Viard after a rich five-year collaboration as artistic director of fashion collections," the group said in a statement, adding that a successor would be announced in due course.
Chanel thanked Viard for her "remarkable contribution", and while critics felt she played it a little safe, sales soared under her leadership, hitting a record of nearly $20 billion in 2023 -- an increase of 14.6 percent on the previous year.
Her last womenswear collection in March was an homage to the French seaside town of Deauville where Gabrielle "Coco" Chanel opened her first boutique in 1912.
Viard herself kept a very low profile, dressing simply and giving very sobre statements to the press -- a world away from the flamboyant Lagerfeld and his often provocative pronouncements.

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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.