France's Christian Lacroix Label Heads for Spanish Ownership

Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group. (AFP)
Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group. (AFP)
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France's Christian Lacroix Label Heads for Spanish Ownership

Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group. (AFP)
Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group. (AFP)

The Spanish fashion group Sociedad Textil Lonia (STL) announced Tuesday it had reached an agreement to buy France's Christian Lacroix label, hoping to return the once-mighty brand to its former glory.

The deal to acquire Lacroix from US-based Falic group, which specializes in duty-free retail, was for an undisclosed amount in a "private transaction", STL said.

"By acquiring Maison Lacroix, with its treasure of archives and rich history of French haute couture, STL expands its brand portfolio, strengthening its international presence in the world of high fashion," STL stated in a press release.

"We will do everything we can to ensure that the unique talent of its creator and his invaluable contribution to the world of fashion reach their full potential," the group added.

Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group.

In 2009, following financial difficulties, the brand implemented a court-ordered recovery plan that resulted in around 100 job cuts and the discontinuation of haute couture operations.

Lacroix, now aged 73, left the group in 2010.

Having spent decades dressing celebrities, he turned to working for ballet and opera productions, as well as collaborating with other labels such as Dries Van Noten.

"The Spanish family that owns STL had the elegance to contact me ahead of the official announcement about the acquisition of the Christian Lacroix name and archives," he told Vogue Business on Tuesday. "We will probably meet soon in an informal way."

Founded in Spain in 1997, STL is a fashion company behind Spanish ready-to-wear brand Purificacion Garcia and the label of Venezuelan-American designer Carolina Herrera, employing 2,500 people and operating 600 stores worldwide, according to its website.



Japan’s Shiseido Says Annual Profit Plunges 73% amid Sluggish Sales in China

A staff member stands at a booth of Japanese cosmetic brand Shiseido, at the third China International Consumer Products Expo, in Haikou, Hainan province, China April 11, 2023. (Reuters)
A staff member stands at a booth of Japanese cosmetic brand Shiseido, at the third China International Consumer Products Expo, in Haikou, Hainan province, China April 11, 2023. (Reuters)
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Japan’s Shiseido Says Annual Profit Plunges 73% amid Sluggish Sales in China

A staff member stands at a booth of Japanese cosmetic brand Shiseido, at the third China International Consumer Products Expo, in Haikou, Hainan province, China April 11, 2023. (Reuters)
A staff member stands at a booth of Japanese cosmetic brand Shiseido, at the third China International Consumer Products Expo, in Haikou, Hainan province, China April 11, 2023. (Reuters)

Japanese cosmetics giant Shiseido said on Monday its full-year profit slumped 73%, partly due to a drop in consumer spending in key overseas market China, a trend the company expects to continue into 2025.

Shiseido said its operating profit came in at 7.58 billion yen ($49.9 million) in the 12-month period ended December 31, compared with 28.13 billion yen the prior year.

A retailer of high-end personal goods, Shiseido is seen as a barometer for consumer confidence in China, a market the company and its peers have come to rely on for sales growth.

"China's cosmetics market suffered a prolonged downturn, weighed down by a decline in consumer spending and rising household savings amid worsening economic sentiment," the Japanese company said in a statement.

Shiseido said its China sales were down 4.6% year-on-year on a like-for-like basis, excluding the impact of foreign exchange and business transfers, and also forecast a sales decline in 2025.

"We think things will bottom out this year and that we will be able to achieve mature growth from then on," Shiseido President Kentaro Fujiwara said of the China market at a post-earnings briefing with reporters.

On the positive side, the company experienced a 10% increase in net sales in Japan and expects similar growth this year, supported by purchases from tourists.

Poor results in China also dragged down interim earnings reported last week by cosmetics competitors L'Oreal and Estee Lauder.

China's once surging economy has been hobbled by a property crisis, mounting local government debt and rising youth unemployment. Compounding woes for global luxury goods makers has been a shift among Chinese consumers toward domestic brands.

Shares in Chinese beauty brand Mao Geping rose 85% when they debuted on the Hong Kong stock market on December 10, and have climbed further since.

In November, Shiseido launched a two-year action plan to restore profitability and focus on its core brands.

Shiseido's shares have sunk 42% over the past 12 months, compared with a 5.1% gain in the benchmark Nikkei average during the same period.