Milan Fashion Week Goes on under Shadow of Russian Attack

Gigi Hadid wears a creation as part of the Moschino Fall/Winter 2022-2023 fashion collection, unveiled during the Fashion Week in Milan, Italy, Thursday, Feb. 24, 2022. (AP)
Gigi Hadid wears a creation as part of the Moschino Fall/Winter 2022-2023 fashion collection, unveiled during the Fashion Week in Milan, Italy, Thursday, Feb. 24, 2022. (AP)
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Milan Fashion Week Goes on under Shadow of Russian Attack

Gigi Hadid wears a creation as part of the Moschino Fall/Winter 2022-2023 fashion collection, unveiled during the Fashion Week in Milan, Italy, Thursday, Feb. 24, 2022. (AP)
Gigi Hadid wears a creation as part of the Moschino Fall/Winter 2022-2023 fashion collection, unveiled during the Fashion Week in Milan, Italy, Thursday, Feb. 24, 2022. (AP)

Milan Fashion Week continued Thursday under the shadow of the Russian invasion of Ukraine and the possible economic repercussions as the West moves toward tighter sanctions.

The head of the Italian fashion council said more than 1 billion euros worth of luxury exports to Russia could be at risk, even as Russian buyers return to Milan for the first time since the pandemic thanks to a deal brokered with the government to recognize the Sputnik V for business travelers.

“If things continue like this, there will be damage,’’ Carlo Capasa, president of the Italian National Fashion Chamber, told The Associated Press. “But it is not even the moment to think about the economic damage, but instead the damage that man does to himself.”

Even if the runways didn't reflect it, the invasion was running in the background as the fashion world made their rounds, and the realization that once again, the world can change in a flash. It was exactly two years ago during the February fashion week previews that the first case in the West of locally transmitted virus was detected near Milan.

"We're coming out of the pandemic. I don't want to think about a European war. I think we have had enough,'' said Arianna Casadei, the third generation of a shoe-making family from Italy's Emilia Romagna coast.

Highlights from Thursday’s preview shows of mostly womenswear for next fall and winter:

Prada’s pragmatism
Make way for the Prada tank top as the new staple for next winter as Miuccia Prada and Raf Simons mark the second year of their creative collaboration.

The simple white branded tank grounds a collection that employs the sheers from eveningwear as durable daytime looks layered with practical tanks and panties, enveloped in masculine overcoats made pretty with wispy faux fur and feathers applied like arm bands.

The skirt of the season is made in three tiers, like confections, mixing up leather, knits, velvet and sheers, sometimes adorned with sequins and rhinestones. It all has the air of upcycling and easily personalized looks.

Jackets also had feminine cutouts, and were adorned with thick ornamental chains that drape, without enclosing. They were worn with sturdy pleated wool skirts with a 1950s flair.

Simons said the collection echoes “revolutionary moments in Prada’s history.”

“The collection is about the history of women, the history of people, not the history of fashion,’’ Prada said in notes.

Moschino’s girls without guilt
Nothing quite says “Let Them Eat Cake” more than a runway show that features looks crafted to resemble furnishings in a European palace of some bygone century. So was Jeremy Scott’s brocade- and velvet-rich collection for Moschino.

Scott had his fun, sending out one model with the motto: “Gilt without Guilt,” and he had multiple jokes about breasts, at one point serving them up pointedly on a silver platter. But beneath the lamp-shade, candelabra and bird cage hats and beyond the grandfather clock dress, the collection featured day suits in bright patterns mimicking Oriental rugs, as well as an array of smart office dresses with pretty piping and button details.

There was also black eveningwear, like the elegant gown with sculpted details around the bare neck worn with opera gloves by Bella Hadid.

In a final flourish, Gigi Hadid twirled off the runway in a gold lame’ gown with a tulle mermaid finish, golden ivy running up her arms as if a statuette.

Scott took a final bow dressed as an astronaut, a nod to the opening music from a “Space Odyssey” but otherwise a head-scratcher.

Emporio Armani’s color play
In a sign that the pandemic is at last easing, Emporio Armani opened up hundreds of seats in its two shows to employees after officials gave the OK to allow full seating.

Giorgio Armani’s line for youthful dressers combined menswear with womenswear after the house postponed the January men’s show due to a virus surge. The merging provided a perfect complement, with geometric motifs running through both collections — in shades of gray for men contrasting with the pink, coral, seafoam green, red and blues for women.

For her, there were flouncy skirts with structured jackets, soft velvety pants with bold silken blouses. Men wore soft jackets tied at the waist, with off-kilter hats and easy-fitting trousers.

Sunnei’s sprint
Loris Messina and Simone Rizzo literally had models sprinting down an outdoor runway for their Sunnei, and in a tongue-in-cheek comment on how fast the fashion world moves, asked guests to film them only in slow motion.

A faux bossy female voice warned that they would be checking all Instagram posts for scofflaws. ”We like to create a moment, to have people enter in our world,'' Rizzo said.

Rizzo said the pair had always envisioned a fast-moving runway, and came up with a collection that reflected that, including wide-legged trousers and leggings, but also thick fuzzy knitwear and rubberized accessories that gave tell-tale signs of motion.

“We were thinking about the kind of girl living right now, who is always running,'' Rizzo said. But he also saw ties to the greater global situation. “We were thinking about how we all run around without thinking of what is going on around. Even what is happening right now in the world makes us understand we really need to calm down.”

Max Mara volumes
Max Mara offered cold weather wear for next winter that envelopes with dramatic silhouettes. Tight bodices give way to teddy bear fuzzy big skirts. Trousers are wide-legged and cuffed, worn with fanny packs that double as hand muffs.

A geometrical motif ran through the collection, from raised patterns on sock booties to square quilting on puffer jackets that provided a studied contrast to ribbing on knitwear. The house’s monochromes ran from basic camel and black and white to flashes of red and yellow.



Lululemon Forecast Cut Hits Shares, Underscores Challenge for Next CEO

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
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Lululemon Forecast Cut Hits Shares, Underscores Challenge for Next CEO

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Shares of Lululemon Athletica fell about 18% in premarket trading on Friday after the sportswear maker cut its full-year forecast for a second time, underscoring the hurdles awaiting incoming CEO Heidi O'Neill.

Lululemon, known for its high-priced stretchy pants and athletic tops, has been grappling with declining sales for several quarters as it seeks to recover from merchandising missteps, an overreliance on promotions and intensifying competition, Reuters reported.

The firm's shares fell ⁠to $100.1 premarket, and ⁠if losses hold, it would wipe out more than $2.5 billion from Lululemon's market value and deepen the stock's year-to-date decline to about 41.5%.

O'Neill, a former Nike executive who takes the helm on September 8, will ⁠be tasked with reviving demand in North America, Lululemon's largest market, and restoring growth.

Revenue in the Americas, the company's largest market, fell 8% in the second quarter, compared with a 1% increase a year earlier, as the firm struggles to reignite demand amid inflationary pressure on consumer spending.

Morgan Stanley said that sales could deteriorate further in the second half, ⁠with ⁠limited visibility on when demand might recover, raising the risk of continued pressure on margins.

Following the results, at least 12 brokerages lowered their price targets on the shares, with Piper Sandler setting the Street-low target of $80, according to data compiled by LSEG.

The company trades at about 11.50 times forward earnings, compared with ​20.76 for Nike ​and 13.41 for Adidas, according to LSEG data.


One Year After Its Founder’s Death, Armani Faces Challenge of ‘Inevitable Evolution’

People walk past a Giorgio Armani store in Galleria Vittorio Emanuele II, in Milan, Italy, September 5, 2025. (Reuters)
People walk past a Giorgio Armani store in Galleria Vittorio Emanuele II, in Milan, Italy, September 5, 2025. (Reuters)
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One Year After Its Founder’s Death, Armani Faces Challenge of ‘Inevitable Evolution’

People walk past a Giorgio Armani store in Galleria Vittorio Emanuele II, in Milan, Italy, September 5, 2025. (Reuters)
People walk past a Giorgio Armani store in Galleria Vittorio Emanuele II, in Milan, Italy, September 5, 2025. (Reuters)

One year after the death of founder Giorgio Armani, the Italian fashion house is entering a pivotal period as the clock starts ticking on plans for an initial stake sale, after the group spent the last year focused on governance.

Armani, who died aged 91 on September 4, 2025, stipulated in his will that a first sale of around 15% of the company should take place between 12 and 18 months after his death, followed by the disposal of a larger stake or a bourse listing.

Industry executives and analysts warn, however, that one year on, the late designer's heirs and advisers must now focus on evolving, to keep the brand fresh and relevant.

"Continuity is the right choice to get through the first year. It becomes, or could become, a risk if it turns into inertia," said Francesco Fiorese, a partner at consultancy Simon Kucher.

The real test for the company, Fiorese ‌said, will be ‌to switch from "a succession model based on Giorgio Armani's legacy to a more autonomous system, capable of ‌making ⁠its own decisions while ⁠still preserving the brand's identity."

Armani group declined to comment.

NEW BUSINESS PLAN

Over the last year, Armani's sales declined 2.8% at constant currencies to €2.2 billion ($2.56 billion), and investors remain cautious about the luxury sector's health as the war with Iran drags on and Chinese consumer spending is faltering.

As he prepares a new business plan, CEO Giuseppe Marsocci, a group veteran now at the helm, told an event in July that Armani would not seek short-term fixes, while keeping faithful to the founder's long-term vision of an essential and elegant style with attention to detail and wearability.

He said Armani was still in a transition phase and looking for a new balance as the founding family worked closely with new board directors, ⁠including former Gucci CEO Marco Bizzarri.

Marsocci pointed to a joint venture to develop new Armani Hotels & ‌Resorts as an indication of future strategic moves.

"The great challenge will be maintaining ‌the balance between the identity that defines us and the inevitable evolution we will have to pursue," he said.

STAKE SALE

In his will, Armani listed ‌France's LVMH and licensees EssilorLuxottica and L'Oréal as potential buyers - or another luxury group of comparable standing.

The fashion house, which sources said is ‌working with Rothschild as financial adviser for the sale, had €500 million in net cash at the end of 2025.

Two people close to the matter said there was no pressure to clinch a sale and the deadlines set out in Armani's will are not strictly binding.

The process is expected to accelerate in the coming weeks, but a deal could be postponed if market conditions fail to support an adequate valuation, the sources said.

Bankers and advisers consulted ‌by Reuters put the group's valuation at around €5 billion to €7 billion.

LICENSING ACCORDS

For L'Oreal and EssilorLuxottica, a stake in Armani would help to protect licensing deals which last year netted almost €2 billion ⁠in revenue for the groups - and ⁠royalties for Armani.

"Licensing deals with L'Oreal and EssilorLuxottica have been profitable. With the market demanding more accessible entry points, like accessories and beauty, as consumer spending tightens, these areas show strong potential for continued growth," said Gonzalo Brujó, CEO of consultancy Interbrand Global.

EssilorLuxottica would be interested only in a small holding and could consider partnering with other bidders, two people close to the matter said.

L'Oréal has little interest in entering the fashion business but is keen to safeguard a beauty license that runs until 2050, according to another person close to the matter.

LVMH, large enough to incorporate fashion, eyewear and beauty, has closely studied the possibility of a stand-alone investment, according to a source with direct knowledge of the matter. But LVMH tends to control brands in its portfolio and an IPO could complicate its bid for Armani if the heirs decided to list the company, the source said.

EssilorLuxottica declined to comment, while LVMH was not immediately available for comment.

L'Oreal told Reuters in an emailed reply to queries that its position on a possible Armani stake had not changed and it was honored that Armani had mentioned the French cosmetic group. "L'Oréal will study this opportunity, which builds on our long-shared history, whenever the Armani S.p.A representatives choose to open the discussion," it added.


Fast-Fashion Giant Shein Plunges 10% on Hong Kong Debut

Carlson Tong (C), Chairman of Hong Kong Exchanges and Clearing Limited, attends SHEIN’s listing ceremony at the Hong Kong Exchanges and Clearing Limited (HKEX) in Hong Kong, China, 01 September 2026. (EPA)
Carlson Tong (C), Chairman of Hong Kong Exchanges and Clearing Limited, attends SHEIN’s listing ceremony at the Hong Kong Exchanges and Clearing Limited (HKEX) in Hong Kong, China, 01 September 2026. (EPA)
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Fast-Fashion Giant Shein Plunges 10% on Hong Kong Debut

Carlson Tong (C), Chairman of Hong Kong Exchanges and Clearing Limited, attends SHEIN’s listing ceremony at the Hong Kong Exchanges and Clearing Limited (HKEX) in Hong Kong, China, 01 September 2026. (EPA)
Carlson Tong (C), Chairman of Hong Kong Exchanges and Clearing Limited, attends SHEIN’s listing ceremony at the Hong Kong Exchanges and Clearing Limited (HKEX) in Hong Kong, China, 01 September 2026. (EPA)

Fast-fashion retailer Shein fell 10 percent on its long-awaited Hong Kong trading debut Tuesday, having raised US$1.7 billion in a high-profile initial public offering.

The flotation comes after the company's plans to list in New York and London were derailed by regulatory scrutiny, but it won approval from Chinese officials in July for the sale in the southern financial hub.

However, its shares fell to as low as HK$43.72 soon after the open, compared with its listing price of HK$48.56.

The IPO put the company's valuation at around US$26.3 billion -- well short of the nearly US$100 billion during private fundraising rounds in 2022.

Shein, known for its ultra-low prices and rapidly produced clothes, said proceeds from the sale would be used to finance its technological capabilities and boost its international presence.

The online retailer moved its headquarters to Singapore between 2021 and 2022, which analysts say was intended to avoid increasing global scrutiny of Chinese firms.

Its European customer base rose to 156 million average monthly users by the end of 2025, making it one of the continent's biggest e-commerce platforms alongside China's AliExpress and US titan Amazon, which have 193 million and around 180 million users respectively.

The company has faced scrutiny over its environmental footprint and allegations of human rights violations, and faces growing competition from low-cost e-commerce companies such as Temu and AliExpress.

Executive chairman Donald Tang told AFP last year that the company has "zero tolerance" for forced labor.

Morningstar analyst Lorraine Tan said in an August note that revenue growth "has converged to the pace seen by the fast fashion industry at below 10 percent in 2025".

She added the fall in valuation "does reflect that drop off in investor appetite for Shein's shares".

The company pioneered a formidable model that is hard to replicate, said Ken Pucker, a sustainable fashion expert at Tufts University.

- Chinese roots -

But its unprecedented growth also invited challenges of "newly imposed taxes and duties, compromised sustainability, privacy and copyright practices and competition", he added.

"Timing is not ideal given the company's slowing growth. That said, it has been trying to go public for around five years, and I am guessing that many of its investors were eager to get paid out."

In 2025, Shein reported a full-year net profit of US$2.06 billion but swung to a US$99 million loss in the first three months of this year after the United States scrapped an import duty exemption on small packages.

In a similar move, the European Union last month imposed a duty of three euros (US$3.50) per item for packages valued at less than 150 euros.

And France will impose a fee on ultra-fast fashion items from Tuesday that could eventually reach almost 20 euros per garment, as the government targets major Asian e-commerce platforms.

"Shein's near future is going to be marked by negative growth," e-commerce analyst Juozas Kaziukenas told AFP.

The retailer needs a "mid-air engine swap" to rebuild its supply chain on diversified inventory sources beyond shipping directly from China, he added.

Shein's CEO Sky Xu made a rare public appearance this year in the southern Chinese province of Guangdong, pledging to allocate greater resources in the country, which was seen by analysts as an attempt to realign the company with its roots.

The Hong Kong listing represents a "new Asian story for the company", as it redefines itself institutionally with "roots in China", said Lawrence Loh, a professor specializing in ESG markets at the National University of Singapore.

"The listing opens a new chapter for Shein to access new capital to resolve the sustainability issues, but this comes with a price of even higher levels of public scrutiny."