Faux Fur, Hot Water Bottles at Burberry’s New London Show

A model wears a creation for the Burberry Autumn/Winter 2023 fashion collection presented in London, Monday, Feb. 20, 2023. (AP)
A model wears a creation for the Burberry Autumn/Winter 2023 fashion collection presented in London, Monday, Feb. 20, 2023. (AP)
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Faux Fur, Hot Water Bottles at Burberry’s New London Show

A model wears a creation for the Burberry Autumn/Winter 2023 fashion collection presented in London, Monday, Feb. 20, 2023. (AP)
A model wears a creation for the Burberry Autumn/Winter 2023 fashion collection presented in London, Monday, Feb. 20, 2023. (AP)

British luxury brand Burberry unveiled its first catwalk show under new creative director Daniel Lee at London Fashion Week on Monday — and there wasn’t a beige trench coat in sight.

The heritage brand is best known for its elegant, functional trench coats invented during World War I. But Lee, who joined Burberry in September, took the fashion house in a brand-new direction with a debut collection featuring faux fur and feathers, slogan T-shirts and playful duck prints.

The 37-year-old British designer was credited with revitalizing Italian luxury brand Bottega Veneta with hugely popular accessories like shoes and handbags during his tenure there, and many in the fashion industry were keen to know if he could work the same magic at Burberry.

Burberry CEO Jonathan Akeroyd said last year that he was banking on Lee’s flair to significantly grow the brand’s accessories sales and “dial up on Britishness in a modern way.”

At Monday’s show, the brand’s signature check pattern appeared in purple, bottle green and maroon on everything from men’s suits to knitwear, skirts, tights and woolly scarves.

Lee seemed to underline a theme of coziness in the face of British weather: One model was draped in a large white blanket emblazoned with the brand’s heritage equestrian knight design, and many of the models clutched hot water bottles with a check print that matched their outfits. Dramatic, oversized faux fur hats and bags adorned with feathers and fur also featured prominently.

Male models wore low-slung, baggy trousers worn with skin-tight polo neck tops, and silver chains and hardware, paired with a red and black palette, hinted at a punk-inspired aesthetic. But there were humorous touches, too, such as a woolly trapper hat topped with a knitted duck head.

The show drew celebrities including film director Baz Luhrmann, rapper Stormzy and models Naomi Campbell and Rosie Huntington-Whiteley to its front row.

Burberry is traditionally the biggest draw at London Fashion Week, which also showcases catwalk shows by designers including Christopher Kane, Erdem, Emilia Wickstead and Roksanda Ilincic.

The London displays wrap up on Tuesday, when the fashion crowd decamps to Milan Fashion Week for more new season runway shows.



LVMH Shares Drop after Missing Second-quarter Estimates

A man walks past a shop of fashion house Dior in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo Purchase Licensing Rights
A man walks past a shop of fashion house Dior in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo Purchase Licensing Rights
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LVMH Shares Drop after Missing Second-quarter Estimates

A man walks past a shop of fashion house Dior in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo Purchase Licensing Rights
A man walks past a shop of fashion house Dior in Paris, France, April 15, 2024. REUTERS/Manon Cruz/File Photo Purchase Licensing Rights

Shares in LVMH (LVMH.PA) fell as much as 6.5% in early Wednesday trade and were on track for their biggest one-day drop since October 2023 after second-quarter sales growth at the French luxury goods giant missed analysts' consensus estimate.

The world's biggest luxury group said late Tuesday its quarterly sales rose 1% year on year to 20.98 billion euros ($22.76 billion), undershooting the 21.6 billion expected on average by analysts polled by LSEG.

At 1000 GMT, LVMH's shares were down 4.5%.

The earnings miss weighed on other luxury stocks, with Hermes (HRMS.PA), down around 2% and Kering (PRTP.PA), off 3%.

Kering is scheduled to report second-quarter sales after the market close and Hermes reports on Thursday, Reuters reported.

Jittery investors are looking for evidence that the industry will pick up from a recent slowdown, as inflation-hit shoppers hold off from splashing out on designer fashion.

JPMorgan analyst Chiara Battistini cut full year profit forecasts by 2-3% for the group, citing softer trends at LVMH's fashion and leather goods division, home to Louis Vuitton and Dior.

"The soft print is likely to add to ongoing investors’ concerns on the sector more broadly in our view, confirming that even best-in-class players like LVMH cannot be immune from the challenging backdrop," said Battistini in a note to clients.

The weakness of the yen, which has prompted a flood of Chinese shoppers to Japan seeking bargains on luxury goods, added pressure to margins, another source of concern.

Equita cut 2024 sales estimates for LVMH by 3% - attributing 1% to currency fluctuations - and lowered its second half organic sales estimate to 7% growth from 10% growth previously.

The lack of visibility for the second half beyond the easing of comparative figures - as the Chinese post-pandemic lockdown bounce tapered off a year ago - is unlikely to improve investor sentiment to the luxury sector, Citi analyst Thomas Chauvet said in an email to clients.

"No miracle with the luxury bellwether; sector likely to remain out of favour," he wrote.

Jefferies analysts said the miss came as investors eye Chinese shoppers for their potential to "resume their pre-COVID role as the locomotive of industry growth and debate when Western consumers will have fully digested their COVID overspend".

LVMH shares have been volatile since the luxury slowdown emerged, and are down about 20% over the past year, with middle-class shoppers in China, the world's No. 2 economy, a key focus as they rein in purchases at home amid a property slump and job insecurity.

LVMH offered some reassurance, with finance chief Jean-Jacques Guiony telling analysts during a call on Tuesday that Chinese customers were "holding up quite well," while business with US and European customers was "slightly better".