Milan Fashion Week Curtailed by Virus, Opens with 16 Shows

Silvana Armani from center left, Giorgio Armani and Leo Dell'Orco stand with models after the Emporio Armani Spring Summer 2022 collection during Milan Fashion Week, in Milan, Italy, Thursday, Sept. 23, 2021. (AP Photo/Luca Bruno)
Silvana Armani from center left, Giorgio Armani and Leo Dell'Orco stand with models after the Emporio Armani Spring Summer 2022 collection during Milan Fashion Week, in Milan, Italy, Thursday, Sept. 23, 2021. (AP Photo/Luca Bruno)
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Milan Fashion Week Curtailed by Virus, Opens with 16 Shows

Silvana Armani from center left, Giorgio Armani and Leo Dell'Orco stand with models after the Emporio Armani Spring Summer 2022 collection during Milan Fashion Week, in Milan, Italy, Thursday, Sept. 23, 2021. (AP Photo/Luca Bruno)
Silvana Armani from center left, Giorgio Armani and Leo Dell'Orco stand with models after the Emporio Armani Spring Summer 2022 collection during Milan Fashion Week, in Milan, Italy, Thursday, Sept. 23, 2021. (AP Photo/Luca Bruno)

Milan fashion houses were charting a path out of the pandemic that included a menswear calendar this month packed with enough live events to entice fashionistas to once again book trans-Atlantic flights. But that was before the omicron surge.

Milan Fashion Week previews for Fall-Winter 2022-23 open Friday with significantly fewer physical events than initially planned, and access to those is severely limited by pandemic restrictions as Italy’s virus infection tally hit record highs almost daily, The Associated Press said.

Global powerhouses like Zegna, Fendi, Dolce&Gabbana and Prada will still host live shows, but Milan mainstay Giorgio Armani canceled entirely and other brands scrapped runway shows for digital. The more than 40 planned live events have been reduced by one-quarter, with 16 live runway shows going ahead alongside physical presentations.

“The positive thing is that many important brands decided to hold runway shows, and this is a good sign,’’ said Carlo Capasa, the president of the Italian National Fashion Chamber. “Fashion is the second most important industry in Italy. It is important to remember that we must live with this virus, and that we have to find a way to protect people’s health while also continuing to work, to allow this industry to continue to work.”

Paris also is confirming a slimmed-down selection of runway shows Jan. 18-23, followed by haute couture, while London canceled its January calendar, which will be combined with women's previews in February.

The Italian fashion scene has been buffeted by the pandemic since Italy recorded the first locally transmitted case of the virus in the West during in the middle of fashion week in February 2020. Armani was the first to close his showroom to a live audience, streaming the Fall-Winter 2020-21 collection from an empty theater.

The digital trend continued, with a handful of live runway exceptions, until last September’s womenswear previews for spring-summer 2022, when vaccination rates heralded a return to live shows as the rule, albeit with limited numbers and social distancing. That was enough to offer promises that fashionistas in something closer to pre-pandemic numbers could once again pack runway seating, where they might discern first hand whether that shimmering fabric is silk or satin.

For this edition, travel restrictions and concerns mean that many editors and buyers who had intended to travel to Milan this month canceled, particularly from the United States, Capasa said. In addition, swaths of Asia and eastern Europe — important fashion markets — are administering vaccinations not approved by European health authorities, limiting travel to Italy.

To engage those who do make the trip, luxury brands like Brunello Cucinelli and Kiton have added physical presentations to their digital shows.

Under current health guidelines, fashion houses must allow for every guest four square meters (just over 40 square meters) — a space that previously might sit as many as eight. In many cases, that means something like one-tenth of the pre-pandemic audience, requiring tough calls even if fewer people are traveling.

In addition, more protective FFP2 masks are required, and rapid tests will be available to those wanting. Venues will be fully disinfected before the shows.

In fashion terms, the pandemic is now in its eighth season. Capasa noted with satisfaction that no outbreaks have ever been traced to fashion week.

“We must learn to live with this virus, and maintain a high guard on behaviors,’’ Capasa said. “If we learned anything, it is that we need to think very quickly and adapt to the situation.”



British Retailer JD Sports to Buy US Rival Hibbett for $1.08 Billion

FILE PHOTO: JD Sports logo is seen on the exterior of a store in London, Britain, November 17, 2021. REUTERS/May James/File Photo
FILE PHOTO: JD Sports logo is seen on the exterior of a store in London, Britain, November 17, 2021. REUTERS/May James/File Photo
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British Retailer JD Sports to Buy US Rival Hibbett for $1.08 Billion

FILE PHOTO: JD Sports logo is seen on the exterior of a store in London, Britain, November 17, 2021. REUTERS/May James/File Photo
FILE PHOTO: JD Sports logo is seen on the exterior of a store in London, Britain, November 17, 2021. REUTERS/May James/File Photo

JD Sports Fashion has proposed to buy American athletic-fashion retailer Hibbett Inc for about $1.08 billion, the companies said on Tuesday, as the British sportswear retailer expands across the southeastern US.
JD Sports, Britain's largest sportswear retailer, will pay $87.50 per Hibbett share in cash, representing a premium of about 20% to the US firm's last closing price.
The Bury, Greater Manchester-based company said it expects to fund the deal and refinance Hibbett's existing debt through its existing US cash resources of $300 million and a $1 billion extension to its existing bank facilities.
The enlarged group would have combined revenues of about 4.7 billion pounds ($5.80 billion) in North America, JD Sports said, adding that the region's contribution to total sales would increase to about 40% from the current 32%.


Apparel Maker Gildan Recommends Two Browning West Nominees to Board

Representation photo: A model presents a creation from the Fall/Winter 2023/2024 Collection by British designer Kim Jones for Dior fashion house during the Paris Fashion Week, in Paris, France, 20 January 2023. (EPA)
Representation photo: A model presents a creation from the Fall/Winter 2023/2024 Collection by British designer Kim Jones for Dior fashion house during the Paris Fashion Week, in Paris, France, 20 January 2023. (EPA)
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Apparel Maker Gildan Recommends Two Browning West Nominees to Board

Representation photo: A model presents a creation from the Fall/Winter 2023/2024 Collection by British designer Kim Jones for Dior fashion house during the Paris Fashion Week, in Paris, France, 20 January 2023. (EPA)
Representation photo: A model presents a creation from the Fall/Winter 2023/2024 Collection by British designer Kim Jones for Dior fashion house during the Paris Fashion Week, in Paris, France, 20 January 2023. (EPA)

Gildan Activewear recommended the election of two Browning West nominees to its board on Monday, ahead of its annual and special shareholder meeting on May 28.
The Canadian clothing maker's board has been clashing with activist fund Browning West, which owns 5% of Gildan, following the ouster of co-founder and CEO Glenn Chamandy in December, Reuters said.
In January, Browning West escalated its fight with Gildan, expanding its list of board candidates to eight from five and called an annual and special shareholder meeting amid the ongoing dispute to replace a majority of its board members and reinstate Chamandy as CEO.
On Monday, the board recommended the election of Karen Stuckey and J.P. Towner, nominated by Browning West. It also appointed five new independent directors to its board effective May 1, 2024.
Gildan had said in March its board decided to put the company up for sale and is in talks with multiple bidders.
The company added on Monday that external interest in an acquisition persists and the process is ongoing.


Louis Vuitton Holds 'Voyager' Fashion Show in Shanghai

A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
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Louis Vuitton Holds 'Voyager' Fashion Show in Shanghai

A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)

Louis Vuitton debuted its newly-labeled "Voyager" traveling show in Shanghai on Thursday night, showing off asymmetric hemlines and boxy leather vests in the country that is one of the brand's key markets.
More than 1,000 invitees, including international celebrities like Cate Blanchett and local stars such as Zhou Dongyu and Jackson Wang, took in the pre-fall collection designed by women's artistic director Nicolas Ghesquière, Reuters said.
The show was held in the cavernous concrete expanse of the Atelier Deshaus-designed Long Museum, in the riverside West Bund art district. It included pieces made in collaboration with Beijing-based artist Sun Yitian, who painstakingly paints photographs of inflated plastic animals, including ducklings, cats and rabbits. Reprints of her works were incorporated into the opening designs of the show.
In the days leading up to the show, images of Sun's work popped up around Shanghai, China's most international city, projected onto the exterior of malls and plastering walls in hip shopping and lifestyle districts.
For Louis Vuitton, the largest luxury brand in the LVMH stable, China continues to represent one of the world's most important luxury opportunities, even as a broader economic slowdown and consumer malaise stymie growth.
LVMH said on Tuesday that year-on-year sales for the quarter ending in March rose 3% on an organic basis, but purchases by Chinese shoppers globally grew 10%.
Last year, Louis Vuitton's men's line, helmed by Pharell Williams, staged a large-scale show in Hong Kong.


L’Oreal Shares Shine After Sales Beat Expectations 

A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. (Reuters)
A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. (Reuters)
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L’Oreal Shares Shine After Sales Beat Expectations 

A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. (Reuters)
A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. (Reuters)

Shares in L'Oreal rose more than 4% in early Friday trading after the French cosmetics giant beat expectations with a strong rise in first quarter sales on Thursday evening, allaying concerns about a slowdown in the United States.

L'Oreal shares were up 5.0% at 0745 GMT having lost 6% this year up to Thursday's close.

"A rock solid quarter, despite concerns," said analysts at Barclays. While L'Oreal did acknowledge a slowdown in the United States, it "comfortably surprised to the upside," both in the US and Europe, they said.

The world's biggest beauty company reported more than 12% sales growth in both North America and Europe, lifted by its mass market range and dermatological products, which helped offset weakness in the luxury segment.

"L'Oreal delivered a strong beat," Bernstein analysts wrote in a note to investors.

They noted L'Oreal's ability to shift investments in advertising and promotions to different parts of the world and across categories and demographics, enabling it to optimize global growth and make it more resilient.


Dior Looks to Marlene Dietrich in New York Fall Show

Logos of Dior brand are seen outside a Dior store in Paris, France, March 3, 2017. (Reuters)
Logos of Dior brand are seen outside a Dior store in Paris, France, March 3, 2017. (Reuters)
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Dior Looks to Marlene Dietrich in New York Fall Show

Logos of Dior brand are seen outside a Dior store in Paris, France, March 3, 2017. (Reuters)
Logos of Dior brand are seen outside a Dior store in Paris, France, March 3, 2017. (Reuters)

French fashion house Christian Dior unveiled a fall line inspired by actress Marlene Dietrich at a catwalk show in New York on Monday evening.
Nodding to Dietrich's personal style, Dior designer Maria Grazia Chiuri dressed models in white shirts, sometimes with ties, pleated trousers and black blazers.
Belted or cowl-neck dresses looked to 1940s silhouettes while some frocks sparkled with beading, Reuters said.
There were also nods to New York, with prints of the Statue of Liberty featuring on some designs. Others were adorned with depictions of the Eiffel Tower in Paris, where Dior is based.
Chiuri worked with artist Claire Fontaine on designing the show space, with pairs of illuminated hands adorning the catwalk's backdrop.
"These hands represent positively and in an empowering way the female sex and they are the hands of the seamstresses, of the creators, myself, of Maria Grazia and the hands of the women that made this project possible," Fontaine said in an interview.
Among the celebrities attending the show were actors Anya Taylor-Joy, Michelle Williams, Naomi Watts, Rosamund Pike and Charlize Theron.


Designer Berluti Reveals Opening Ceremony Tuxedo for French Athletes

An employee shows the Paris 2024 - Berluti label sewn inside the suit jacket for the French team athletes for the opening ceremony by LVMH's upscale menswear label Berluti, in a showroom at Berluti headquarters in Paris, France, April 10, 2024.  REUTERS/Stephanie Lecocq
An employee shows the Paris 2024 - Berluti label sewn inside the suit jacket for the French team athletes for the opening ceremony by LVMH's upscale menswear label Berluti, in a showroom at Berluti headquarters in Paris, France, April 10, 2024. REUTERS/Stephanie Lecocq
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Designer Berluti Reveals Opening Ceremony Tuxedo for French Athletes

An employee shows the Paris 2024 - Berluti label sewn inside the suit jacket for the French team athletes for the opening ceremony by LVMH's upscale menswear label Berluti, in a showroom at Berluti headquarters in Paris, France, April 10, 2024.  REUTERS/Stephanie Lecocq
An employee shows the Paris 2024 - Berluti label sewn inside the suit jacket for the French team athletes for the opening ceremony by LVMH's upscale menswear label Berluti, in a showroom at Berluti headquarters in Paris, France, April 10, 2024. REUTERS/Stephanie Lecocq

LVMH-owned menswear brand Berluti unveiled navy wool suits with colored silk lapels for France's Olympic athletes' opening ceremony outfits on Tuesday.
LVMH, a sponsor of the Paris 2024 games, said the "tuxedo-inspired outfit" reflected Berluti's identity, using "noble materials and patina effects" for an elegant, French look.
The jacket lapels have a red and blue motif inspired by the French flag and the brand's signature color-infused patina leather shoes. The women's jackets have cut-away sleeves.
Berluti was founded in Paris in 1895 by a young Italian shoemaker. The French athletes will also wear Berluti trainers or leather loafers.


Adidas Surges as Strong Momentum Helps Q1 Beat, Triggers Outlook Hike 

08 March 2022, Bavaria, Herzogenaurach: The logo of the sporting goods manufacturer Adidas on a blue jacket. (dpa)
08 March 2022, Bavaria, Herzogenaurach: The logo of the sporting goods manufacturer Adidas on a blue jacket. (dpa)
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Adidas Surges as Strong Momentum Helps Q1 Beat, Triggers Outlook Hike 

08 March 2022, Bavaria, Herzogenaurach: The logo of the sporting goods manufacturer Adidas on a blue jacket. (dpa)
08 March 2022, Bavaria, Herzogenaurach: The logo of the sporting goods manufacturer Adidas on a blue jacket. (dpa)

Shares in Adidas rose more than 7% on Wednesday, hitting their highest level in over two years after the German sportswear giant on Tuesday reported better-than-expected quarterly results and raised its 2024 guidance on stronger momentum.

Growth is being driven by strong demand momentum in "terrace" retro styles, such as Samba, Gazelle and Campus, as well as strength in performance categories, analysts at Wedbush said.

Analyst Cedric Lecasble at Stifel also highlighted that the raise in 2024 guidance "had little to do with Yeezy mechanics, but was much more driven by Adidas brand building materializing at full speed."

Adidas has been undergoing a turnaround after in October 2022 it cut ties with rapper West, who goes by Ye, suspending sales of the highly profitable Yeezy sneaker line.

It later resumed sales of Yeezy products under the lead of CEO Bjorn Gulden, in the job since the start of 2023, to clear remaining stock while seeking to boost its popular retro styles.

Lecasble described revenue performance in the first quarter as "impressive" in the context of challenging market conditions.

Analysts however view Adidas' guidance for operating profit (EBIT) of 700 million euros as still conservative.

Given that consensus already estimates the figure at around 890 million euros for 2024, RBC analyst Piral Dadhania pointed out, "the market clearly does not believe the EBIT guide, which to us appears to be unrealistic, and overly conservative."

Adidas delivered a quarterly EBIT of 336 million euros.

The company said it sold another 150 million euros worth of Yeezy products in the past quarter, for an operating profit of around 50 million euros. It, however, expects no further profit contribution from the remainder of Yeezy inventory, which it anticipated to sell for about 200 million euros later this year.

Shares were up 6% by 09:49 GMT, topping pan-European STOXX 600 index.


UK's ASOS Sinks to First-half Loss

A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
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UK's ASOS Sinks to First-half Loss

A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs

British online fashion retailer ASOS sunk to a first-half loss, as it battles competition from Chinese giant Shein and self-inflicted problems from excess stock, but it said it still expected an improvement over the year.
ASOS also named former Sainsburys and Amazon executive Dave Murray as its new chief financial officer on Wednesday, saying that his retail and e-commerce experience would help return the group to profitability, Reuters reported.
The company has struggled to grow since the pandemic and has cast its current financial year as a transition period, when it will speed up new collection launches and shed a build up of excess stock which has dragged on profits.
For the 26 weeks to March 3, ASOS posted an adjusted EBITDA loss of 16.3 million pounds ($20.3 million), compared to the 4.6 million pounds it made in the period last year.
Over the full-year period, it is sticking to a forecast for positive adjusted EBITDA on sales that are expected to be 5 to 15% lower.
"ASOS is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainably profitable growth in full-year 2025 and beyond," CEO José Antonio Ramos Calamonte said.
ASOS is facing growing competition from fast-fashion giant Shein, which is expanding rapidly in Europe, offering low prices and benefiting from its speedy response to changing trends.


Dr. Martens Dour US Revenue Outlook for the Year Sends Stock of Iconic Bootmaker Plunging

A Dr. Martens boot inspired by Elton John's famous Pinball Wizard outfit is shown at a promotional event in London, March 20, 2023. (AP)
A Dr. Martens boot inspired by Elton John's famous Pinball Wizard outfit is shown at a promotional event in London, March 20, 2023. (AP)
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Dr. Martens Dour US Revenue Outlook for the Year Sends Stock of Iconic Bootmaker Plunging

A Dr. Martens boot inspired by Elton John's famous Pinball Wizard outfit is shown at a promotional event in London, March 20, 2023. (AP)
A Dr. Martens boot inspired by Elton John's famous Pinball Wizard outfit is shown at a promotional event in London, March 20, 2023. (AP)

Chunky bootmaker Dr. Martens is warning of a tough year ahead.

Dr. Martens shares plunged more than 30% Tuesday after the iconic British brand forecast wholesale revenue in the US, its largest market, would decline by double-digits compared with last year.

Trading in Dr. Martens stock was temporarily halted on the London Stock Exchange early Tuesday as it sank to a record-low 0.64 pounds, according to FactSet.

That could translate into a sizeable hit to profits, with the company pointing to a base projected impact of 20 million pounds ($24.9 million) on pretax earnings year-over-year. In-season orders from wholesale customers could help ease US revenue expectations, the company noted, but those are difficult to predict.

Beyond weakening revenue, Dr. Martens anticipates other hefty expenses related to the company's employee retention plans as well as single-digit inflation in its cost base. Unlike years past, the brand does not plan to increase prices to offset those costs.

Dr. Martens also announced a leadership shakeup on Tuesday. After six years at the helm of the company, CEO Kenny Wilson will step down. Ije Nwokorie, Dr. Martens’ chief brand officer, will take his place before the end of the current fiscal year.

In a prepared statement regarding 2025's financial outlook, Wilson acknowledged the challenges ahead, saying that Dr. Martens is focused on its plans to "reignite boots demand, particularly in the USA.”

Still, Wilson said that the brand “remains strong.” Dr. Martens said it saw a pick-up in direct to consumer growth during the fourth quarter.

Shares for Dr. Marten are down more than 56% over the last 12 months, per FactSet.


LVMH's First Quarter Sales Growth Slips to 3% on Luxury Slowdown

A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
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LVMH's First Quarter Sales Growth Slips to 3% on Luxury Slowdown

A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)

LVMH reported a 3% rise in first quarter sales on Tuesday, marking a slowdown as rising prices prompted more shoppers who aspire to own its handbags and other luxury goods to hold back on splashing out thousands of dollars.

The slower quarterly sales growth reflected comparisons with the same period in 2023, when sales were boosted by the lifting of COVID-19 curbs in LVMH's key market of mainland China and comes amid worries about a prolonged global slowdown which has knocked luxury companies' shares over the past year.

The world's largest luxury group, owner of Louis Vuitton, Tiffany & Co. and Bulgari, said sales for the quarter ending in March were up 3% year-on-year on an organic basis to 20.69 billion euros ($22 billion), matching analyst expectations.

LVMH, which is Europe's second-largest listed company and worth nearly 400 billion euros, is the first luxury goods maker to report quarterly earnings, setting the tone as worries grow about demand in China, the world's No. 2 economy.

Gucci-owner Kering last month issued a surprise warning that first quarter sales would slump 10%, with sharp declines in Asia, casting uncertainty for the sector's outlook.

Sales at LVMH's fashion and leather goods division, which includes Louis Vuitton and Dior, climbed 2%, also matching expectations.

Sales in the division, which sells small Lady Dior handbags priced at 5,400 euros and roomy Louis Vuitton Speedy bags for 10,000 euros, had risen by 9% year-on-year the previous quarter.

Chief Financial Officer Jean-Jacques Guiony told journalists that LVMH was "quite happy" with demand from Chinese shoppers.

He said purchases of Louis Vuitton products by Chinese buyers globally grew by around 10%, with an increasing proportion taking place outside mainland China as they resume travelling, particularly in Japan and to some extent in Europe.

LVMH, a conglomerate spanning spirits, jewellery, cosmetics and fashion which is regarded as a bellwether for the wider luxury goods industry, does not give a breakdown for its brands.