Brazil Hosts First Ever Fashion Show Celebrating Indigenous People

Indigenous model Amirla Oliveira, of the Kulina tribe, poses
during a fashion event in Manaus, Brazil, April 9, 2022. (AFP Photo).
Indigenous model Amirla Oliveira, of the Kulina tribe, poses during a fashion event in Manaus, Brazil, April 9, 2022. (AFP Photo).
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Brazil Hosts First Ever Fashion Show Celebrating Indigenous People

Indigenous model Amirla Oliveira, of the Kulina tribe, poses
during a fashion event in Manaus, Brazil, April 9, 2022. (AFP Photo).
Indigenous model Amirla Oliveira, of the Kulina tribe, poses during a fashion event in Manaus, Brazil, April 9, 2022. (AFP Photo).

Brazil has organized the first ever indigenous fashion show in the city of Manaus, during which models wear feathered headdresses.
"It is a feeling of happiness and pride," said 19-year-old model Moan Munduruku.

“As it’s the first-of-its-kind event, we are very eager to show our talent, in sewing, in crafts. To show the world that indigenous people can also succeed in fashion,” he added.

Moan is one of 37 models -- of women and men -- representing 15 indigenous groups of Brazil to take part in the Intercultural Exhibition of Indigenous Fashion. For the entire month of April, the catwalk is to host the creations of 29 indigenous designers in Manaus, the Brazilian Amazon's largest city.

"It's a form of resistance, a way to overcome stereotypes," event organizer Reby Ferreira, 27, told AFP.

The designers use natural elements in their creations, including the spear like teeth of the peccary (an Amazonian boar), the red guarana fruit, acai seeds and coconut shells. The same geometric patterns sported by the models are repeated in the fabrics that envelop them.

"My outfit evokes the ritual of the Ticuna girl, and the hay house where she has to be when practicing these rituals," said Kimpuramana, a 17-year-old model sporting a white dress adorned with black diagonal stripes.

On the runway, a presenter announces the ethnicity of each model and explains the symbolism behind the clothes and accessories they wear. Saturday's show was hosted at the Rio Negro Palace, an early 20th century building that now serves as a cultural center.

"I feel privileged to have been able to attend such an event in this place. We are generally excluded from such sites. Today I can see my people telling their story through fashion," said indigenous participant, writer Bianca Mura, 24.



Spain's Fashion and Beauty Group Puig Poised for IPO

Puig Group owns the Paco Rabanne, Nina Ricci, Charlotte Tilbury and Carolina Herrera labels and also holds a majority stake in Jean Paul Gaultier. FRANCOIS GUILLOT / AFP/File
Puig Group owns the Paco Rabanne, Nina Ricci, Charlotte Tilbury and Carolina Herrera labels and also holds a majority stake in Jean Paul Gaultier. FRANCOIS GUILLOT / AFP/File
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Spain's Fashion and Beauty Group Puig Poised for IPO

Puig Group owns the Paco Rabanne, Nina Ricci, Charlotte Tilbury and Carolina Herrera labels and also holds a majority stake in Jean Paul Gaultier. FRANCOIS GUILLOT / AFP/File
Puig Group owns the Paco Rabanne, Nina Ricci, Charlotte Tilbury and Carolina Herrera labels and also holds a majority stake in Jean Paul Gaultier. FRANCOIS GUILLOT / AFP/File

The iconic Nina Ricci, Paco Rabanne and Jean-Paul Gaultier labels make their market debut Friday as Spanish fashion and beauty group Puig begins trading on the Madrid stock exchange.
For the family-owned Puig Group, which has expanded rapidly into luxury goods, going public is a big step which will allow it to compete with the giants of the sector such as Estee Lauder, Hermes, Kering and LVMH.
The move "is a decisive step in Puig's 110-year history," chairman and CEO Marc Puig said last month, emphasizing the firm's "long-term approach".
Founded in Barcelona in 1914 by businessman Antonio Puig Castello, the group has grown over the years to become a heavyweight in the cosmetics, fragrance and fashion industries, bolstering its stance in recent years with a string of prestigious acquisitions.
Among its brands are Paco Rabanne, Nina Ricci, Charlotte Tilbury, Carolina Herrera and Dries Van Noten. It also holds a majority stake in the Jean Paul Gaultier label and has licensing agreements with Prada, Christian Louboutin and Comme des Garçons.
A family firm
The Barcelona-based group, which specializes in perfumes and cosmetics, enters the market on Friday with an opening guidance price of 24.50 euros (about $26) per share.
Analysts said it was Spain's biggest IPO this year and one of the largest in Europe.
The price gives the group an estimated market capitalization of nearly 14 billion euros, which will allow it to enter Madrid's Ibex 35 exchange, which groups Spain's 35 largest companies.
The flotation will take place in two stages, the first of which would seek to raise an initial 1.25 billion euros through newly issued shares.
It would then make a "larger secondary offering" of existing shares held by its holding company Exea to raise nearly 1.36 billion euros.
That could then be complemented with the sale of shares reserved for specific investors for another 390 million euros, which would allow the group to raise around 3.0 billion euros.
Despite the move, the Puig family said it would retain a controlling interest in the company with 71.7 percent of the shares, along with "the vast majority of voting rights" -- 92.5 percent -- within the board of directors.
'Greater financial clout'
The idea of an IPO had first been raised by Puig himself in an interview with the Financial Times in October 2023, in which he said being accountable to the market would bring "a discipline" that would head off any issues when passing the baton from one generation to the next.
"Sometimes family businesses can lose their position in the market. They can start to die slowly and nobody inside the company is aware of it," he told the paper. "If you’re accountable (to investors), those things can be noticed."
According to Javier Cabrera, an analyst at XTB, the IPO would allow the group to build "greater financial clout" by taking advantage of "the positive stock market dynamics" in the luxury goods and fashion sector.
Luxury goods are enjoying a buoyant moment with sector heavyweights posting record sales in 2023, despite a slowdown following two years of double-digit growth.
Last year, Puig posted sales of 4.3 billion euros, a 19 percent increase on 2022, logging net profits of 465 million euros, up 16 percent year-on-year.
And that growth could gather pace thanks to Puig's strategy of acquisitions, which in recent years has led to "a high level of growth" and "a good diversification of revenues, both geographically and in terms of business lines", Cabrera said.
He also pointed to the group's strong showing in China, a major consumer of luxury goods.


Luxury Brands Lure Chinese Shoppers despite Slowdown

Louis Vuitton described its 'Voyager' show in Shanghai last month as the 'next chapter in a strong, longstanding relationship' with China. Hector RETAMAL / AFP
Louis Vuitton described its 'Voyager' show in Shanghai last month as the 'next chapter in a strong, longstanding relationship' with China. Hector RETAMAL / AFP
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Luxury Brands Lure Chinese Shoppers despite Slowdown

Louis Vuitton described its 'Voyager' show in Shanghai last month as the 'next chapter in a strong, longstanding relationship' with China. Hector RETAMAL / AFP
Louis Vuitton described its 'Voyager' show in Shanghai last month as the 'next chapter in a strong, longstanding relationship' with China. Hector RETAMAL / AFP

Sipping champagne and nibbling fried dumplings, Shanghai's rich and influential posed by Louis Vuitton signs at a runway afterparty –- a lavish affair designed to win customers in China's crucial market.
China is the world's biggest spender in the luxury sector, accounting for half of global sales. But as its post-pandemic recovery falters, consumption has flagged, sending jitters through the industry.
For years, wealthy Chinese tourists had traveled to Europe to shop at its boutiques, but when the Covid-19 pandemic struck, the country introduced draconian restrictions that stopped them from leaving the country.
The measures also threw the world's second largest economy into a slowdown that it is struggling to recover from, with consumer confidence hit and attitudes towards high-end purchases starting to shift.
Now, as China emerges from its coronavirus haze, luxury brands are trying to woo its shoppers back.
Shares in Gucci owner Kering tumbled in April after it reported sales in the first quarter had fallen by 11 percent, citing tough market conditions in China.
"Gucci will... not be alone here as other brands have also been feeling the pinch from China's domestic spending," Fflur Roberts, head of luxury at Euromonitor International, told AFP.
Brands with a strong presence in China like Louis Vuitton are staging special events and handing out perks to VICs –- an acronym for Very Important Clients.
Louis Vuitton described its "Voyager" show in Shanghai last month as the "next chapter in a strong, longstanding relationship" with China.
Its leading pieces –- boldly colored dresses marked with large cartoon-like animals -– were a collaboration with contemporary Chinese artist Sun Yitian, with the brand hailing "the tremendous stylistic vitality" of the country's youth.
Hollywood A-listers Cate Blanchett and Jennifer Connelly strode down the runway to their seats before the show began, as did Chinese megastars and brand ambassadors Liu Yifei and Jackson Wang.
At the afterparty, influencers and VICs, many dressed head-to-toe in Louis Vuitton, mingled under flashing neon street signs, sampling fancified Chinese street food from stalls bedecked with the brand's logo.
'More cautious consumers'
Louis Vuitton's parent company LVMH is among the fashion houses so far proving fairly resilient in the face of China's economic headwinds.
While its first quarter results showed its slowest rate of growth in years, the brand said that sales to domestic and overseas Chinese customers increased by about 10 percent.
Prada and Hermes's first quarter results both beat analysts' expectations, posting 18 and 17 percent rises in sales, respectively.
Overall, however, the market has slowed down, with consultancy firm Bain & Company forecasting single-digit growth in the Chinese luxury market in 2024 compared to 12 percent last year.
"The economic downturn is impacting Chinese luxury consumers' confidence," said Lisa Nan, correspondent for Jing Daily, which reports on the Chinese luxury sector.
"We are facing much more cautious and value-driven consumers, that also check the handbag's second-hand market value before making a purchase."
Travel, not bags
Post-pandemic, there has also been a shift in consumer tastes and priorities.
Near Shanghai's Wukang Mansion, a landmark regularly swarmed by influencers, a woman surnamed Liu said that while she occasionally bought designer items, she would never go line up for a bag.
"I like traveling a bit more," she said. "I'm not so crazy about brand names."
That's a trend evident in a report on high net-worth individuals' preferences compiled by research firm Hurun.
"There is a significant shift towards experiential luxury rather than luxury goods," said Nan of Jing Daily.
During the pandemic, the absence of high-spending Chinese tourists hit Europe's luxury goods sector hard.
Some of that spending transferred to China, as global brands focused on organizing events and creating goods more tailored to their biggest market.
Euromonitor International's Roberts said the outlook for the luxury market remained "challenging", and that brands should "err on the side of caution".
"That said, China is still home to over 2.5 million people with a net wealth over $1 million," she added.
On a sunny day in central Shanghai, passers-by clutched their designer handbags as they went shopping.
"Some people say that if you buy classic styles, they may appreciate in value and it can be an investment," said a 28-year-old media worker named Winnie carrying a Dior bag.
"But for me... it's not an investment. As long as I like it, it's fine."
"I think China is still in a period where (European) brands are important," Jennifer Sheng, a woman in her 60s, told AFP.
In her eyes, the allure of owning designer products remained strong.
"Twenty years, thirty years ago, we didn't have anything," Sheng said.
"We want to have these things."


Hugo Boss Beats Q1 Operating Profit Expectations 

The logo of German fashion house Hugo Boss is seen on a clothing label at their outlet store in Mezingen near Stuttgart October 29, 2013. (Reuters)
The logo of German fashion house Hugo Boss is seen on a clothing label at their outlet store in Mezingen near Stuttgart October 29, 2013. (Reuters)
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Hugo Boss Beats Q1 Operating Profit Expectations 

The logo of German fashion house Hugo Boss is seen on a clothing label at their outlet store in Mezingen near Stuttgart October 29, 2013. (Reuters)
The logo of German fashion house Hugo Boss is seen on a clothing label at their outlet store in Mezingen near Stuttgart October 29, 2013. (Reuters)

Hugo Boss' first-quarter operating profit on Thursday beat expectations despite further investment into the business helped by efficiencies and improving costs.

Earnings before interest and taxes rose 6% to 69 million euros ($74 million), slightly above the 65 million in a company-provided poll of analysts.

Efficiency gains in sourcing as well as more favorable product and freight costs offset promotion costs and negative currency effects, the company said.

Quarterly group sales rose 5% to 1.01 billion euros.

Brand and product initiatives including the launch of the latest spring/summer 2024 collection drove growth for its BOSS and HUGO brands in the quarter, the company said.


Pandora Raises Revenue Forecast as US Sales Sparkle 

People pass a shop of the Danish jewellery maker Pandora in central Copenhagen, Denmark February 6, 2024. (Reuters)
People pass a shop of the Danish jewellery maker Pandora in central Copenhagen, Denmark February 6, 2024. (Reuters)
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Pandora Raises Revenue Forecast as US Sales Sparkle 

People pass a shop of the Danish jewellery maker Pandora in central Copenhagen, Denmark February 6, 2024. (Reuters)
People pass a shop of the Danish jewellery maker Pandora in central Copenhagen, Denmark February 6, 2024. (Reuters)

Pandora, the world's largest jewellery maker, raised its full-year revenue guidance on Thursday after beating first quarter sales and profit forecasts as it won market share in the United States, its biggest market.

The Danish company's shares jumped 5% in early trading.

Pandora has invested heavily in marketing, store openings, and broadening its range of rings, necklaces, and lab-grown diamonds, though its charm bracelets ranging from $60 to more than $2,000 still make up around 60-70% of sales.

Sales jumped 11% in the first quarter to 6.8 billion Danish crowns ($977.8 million), including a 9% increase in the United States, where the brand is gaining market share even as overall demand for jewellery has weakened.

"The reason we are gaining share fundamentally is because we keep investing in this brand," CEO Alexander Lacik told Reuters in an interview. "Even when there is a shrinking pie, you will find winners and losers."

Operating profit rose to 1.51 billion crowns from 1.26 billion a year earlier, compared with 1.32 billion expected by analysts polled by the company.

Pandora now expects organic revenue growth of 8%-10% this year, compared with 6%-9% previously. It kept its operating margin guidance at around 25%.

Charm bracelets, a staple of 90s fashion, have enjoyed a renaissance, trending on social media platforms like TikTok.

Lacik said social media contributed to Pandora's growth but was not the underlying driver.

"This is a result of the overarching program that Pandora has been working on for many years now, and I think maybe we've hit a sweet spot with the type of audience that we're trying to serve," Lacik said.

In North America, Pandora's expansion into lab-grown diamond jewellery piqued shoppers' interest and increased their demand for the whole range of Pandora products, the company said.

China was a weak spot with sales down 17% in like-for-like terms, which Pandora blamed on a challenging market as it works to relaunch the brand there.


Estee Lauder Tempers Sales View despite US, China Recovery

An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
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Estee Lauder Tempers Sales View despite US, China Recovery

An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)

Estee Lauder lowered its annual organic sales estimate on persistent softness in mainland China's prestige beauty space, even as a demand rebound for its pricey items in the US and Asia-Pacific markets drove a profit forecast raise.

Shares of the New York-based company dropped nearly 10% on Wednesday.

Estee also beat third-quarter results expectations, hinting at a recovery in demand for beauty and cosmetic products in the US after a long bout of inflation had pressured sales of luxury items in the world's biggest economy.

A pick-up in China and Asia travel retail demand after several quarters of weakness underscored customer willingness to splurge on "affordable luxuries" such as fragrances and make-up products.

Third-quarter organic net sales in the Americas grew 1%, with a 3% rise in the Asia Pacific region.

"We see actual progress in the total Chinese consumer consumption on our brands and they are very solid," said CEO Fabrizio Freda, adding that the number of Chinese travelers are growing too.

However, Estee forecast annual organic sales would fall 1% to 2%, compared with its previous estimate of a 1% decrease to a 1% increase.

"Estee Lauder's management might have taken the view it is better to be cautious now and over-deliver than continue with high expectations and fail to sell enough products," said Dan Coatsworth, investment analyst at AJ Bell.

The company expects full-year 2024 adjusted profit per share between $2.14 and $2.24, compared with a prior forecast of $2.08 to $2.23.

Net sales rose 5% to $3.94 billion, compared with LSEG estimates of $3.91 billion. Adjusted profit of 97 cents per share surpassed expectations of 49 cents.

Last month, European rival L'Oreal also beat sales expectations and eased concerns about waning demand in the US and China - the two biggest beauty markets.

"The sector has held better than I expected and the question really around luxury and personal luxury goods is whether 2024 will be a hard or soft landing ... so far it speaks to the narrative of a soft landing," said Javier Gonzalez Lastra, luxury-focused portfolio manager at Tema ETFs.


Ralph Lauren Goes Minimal for Latest Fashion Show, with Muted Tones and a More Intimate Setting

File photo: Fall-Winter 2022 fashion from Ralph Lauren is modeled, Tuesday, March 22, 2022, in New York. (AP)
File photo: Fall-Winter 2022 fashion from Ralph Lauren is modeled, Tuesday, March 22, 2022, in New York. (AP)
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Ralph Lauren Goes Minimal for Latest Fashion Show, with Muted Tones and a More Intimate Setting

File photo: Fall-Winter 2022 fashion from Ralph Lauren is modeled, Tuesday, March 22, 2022, in New York. (AP)
File photo: Fall-Winter 2022 fashion from Ralph Lauren is modeled, Tuesday, March 22, 2022, in New York. (AP)

Ralph Lauren has been known for many grand fashion show over the years: taking over Central Park for a sumptuous anniversary celebration, for example, or staging a runway show amid his eye-popping classic car collection.
But for his Fall/Holiday 2024 collection, he decided to go minimal — at least, minimal in Ralph Lauren terms. That meant an intimate show Monday night in a (relatively) small design studio at his New York City offices, inspired by his first women’s fashion show in 1972, where he displayed his wares to editors and friends in his own office.
In front of a typically starry front row that included actors Glenn Close, Jessica Chastain, Kerry Washington, Rebecca Hall and Jodie Turner-Smith, Lauren opened his show on a note of timelessness — his longtime ethos — with the appearance of muse and supermodel Christy Turlington, now 55, in a sleek beige wool coat.
What followed were a series of designs in soothing neutral tones: tans, browns, grays, black and metallics. The soft palette characterized both daytime garments like tailored jackets and sweaters with trousers, and evening wear like slinky, sequined gowns. There were roomy sweaters, lots of boots and wide leather belts with “RL” buckles.
There were Lauren’s familiar Western accents, like long fringes on coats and jacket sleeves. And especially the occasional cowboy hat, which accompanied not only casual ensembles but, to close out the show with a memorable look, a backless gown dress in sparkly gold.
Lauren, 84, appeared briefly at the end, in well-worn jeans, to cheers from the crowd, which also included Vogue editor Anna Wintour.
Close wore a white Lauren pantsuit. “This is a very, very special suit," the actor said. “It was made especially for me. Custom. Five years ago. I won a SAG award in it. So here I am. It looks just as beautiful. It’s a shame to wear something like this only once.”
Close added that growing up in New England, “the mentality was, you buy something that has great quality and then you wear it until it wears out. That’s how I was brought up."
After the show, guests walked the few blocks down to Lauren’s Polo Bar restaurant, where the designer was again cheered when he made his entrance — before tucking into one of his restaurant’s signature burgers.
Lauren's son, David, an executive at the label, discussed the task of creating new designs each season. “You know, everything changes," he said. “You're always looking at new fabrics and you’re looking at new silhouettes, and you’re looking at new ways to bring the brand to life. But there is a philosophy. There is a style.”
With Wintour's Met Gala coming up in exactly a week, David Lauren was asked if the label would be dressing any stars. “Not this year," he said. "We’ve been so involved over the years, but this year we have a fashion show and we’re about to outfit team USA (for the Olympics in Paris) and do a men’s presentation in Milan. So our plate is full.”


Fast-fashion Giant Shein Wants to Sell Skincare, Toothpaste

FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo
FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo
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Fast-fashion Giant Shein Wants to Sell Skincare, Toothpaste

FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo
FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo

Online fast-fashion retailer Shein is courting brands like toothpaste conglomerate Colgate-Palmolive and toymaker Hasbro as it tries to sell more household names on its platform, Reuters reported.
Known for cheap own-brand clothing and accessories, Shein is moving into other categories and has given brands and retailers access to its platform in nine European countries so far, having done so in the United States, Brazil, and Mexico last year.
The strategy, part of Shein's plan to build credibility and better compete with Amazon, is enabling the business to expand and develop new ways of selling goods ahead of a planned stock market listing later this year.
Shein presented its marketplace services at an event in Madrid last month alongside Colgate-Palmolive, Hasbro , Orangina maker Suntory Beverage & Food, and Spanish cosmetics brand Bella Aurora.
"Everybody associates Shein with fashion, but we are doing all verticals," Christina Fontana, senior director of brand operations for Europe, Middle East and Africa at Shein, told delegates at a conference in Paris on April 17.
Seeing shoppers opening Shein and searching for other brands provided the impetus, Fontana said.
"Our consumers want brands, if that's what they're looking for, that's what we're going to give them."
Fontana, who previously worked for AliBaba, is one of several marketplace experts Shein has poached from the Chinese e-commerce giant and other firms.
That recruitment has helped fuel rapid expansion. Shein had an average 108 million monthly active users in European Union member states in the six months to Jan. 31.
But the company's growth has brought new complications, including new EU rules requiring it to police its platform for illegal or harmful products.
In Europe, Shein's marketplace is so far available in Britain, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain, and Sweden.
Whether the new marketplaces succeed and enable Shein to compete with Amazon and AliExpress will depend on what brands the company can attract, experts say.
"If Shein wants to compete as a trustworthy reputable marketplace platform, it really needs endorsement from well-known Western brands," said Xiaofeng Wang, e-commerce analyst at Forrester in Singapore.
SUPERCHARGE SALES
In a Zoom webinar aimed at potential sellers in the United States on Thursday, Shein's head of seller marketing Claire Lin pitched an opportunity for brands to reach millions of shoppers and "supercharge" sales, Reuters said.
"Our shopping experience is very sticky, it's very much gamified," she said. "It's fun to shop on our site, so what we see is the minimum shopping time is around eight minutes, well above industry average."
Shein shoppers are Gen Z and millennial, and skew female - with around an 80-20 split of women versus men, Lin said.
Home, electronics, and beauty & health are currently top-performing categories, she said, and the only category Shein does not offer is food and beverages.
The gross merchandise value (total value of products sold) in the home category tripled in 2023, while electronics grew by 2.5 times, and beauty & health grew by 2.1 times, according to a slide shown during the webinar.
Selling directly through a marketplace can provide a significant sales boost for brands. But before doing so, manufacturers typically seek assurances that the marketplace is a good fit for the audience they want to reach, and that they will have control over pricing and promotions.
Shein's platforms have attracted many third-party retailers.
Products from beauty and skincare brands like Caudalie, CeraVe, La Roche-Posay, Shiseido, The Ordinary, Rimmel, and Weleda are currently being sold on Shein's platform in the US, Britain, Brazil, and Mexico via third-party retailers.
Jayn Sterland, UK & Ireland country manager at Weleda, said the Swiss cosmetics brand was not considering selling on Shein directly.
When assessing a marketplace, reputation, perception, and environmental impact are among the key factors the brand looks at, Sterland added, pointing to sustainability initiatives Weleda works on with Amazon, where it sells directly.
Colgate-Palmolive did not reply to a request for comment. A Hasbro spokesperson said the company participated in the Madrid event "to talk generally about the pros and cons of marketplaces".
A Suntory spokesperson said: "We don't sell any of our drinks on Shein's marketplace and we don't have any plans to, this was just an opportunity to share best practice."


Online Retailer Shein Is Latest to Face Strict European Union Digital Regulations

 26 April 2024, Spain, Madrid: Shein Accessories are pictured in an ephemeral store during its opening at ABC Serrano in Madrid. (dpa)
26 April 2024, Spain, Madrid: Shein Accessories are pictured in an ephemeral store during its opening at ABC Serrano in Madrid. (dpa)
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Online Retailer Shein Is Latest to Face Strict European Union Digital Regulations

 26 April 2024, Spain, Madrid: Shein Accessories are pictured in an ephemeral store during its opening at ABC Serrano in Madrid. (dpa)
26 April 2024, Spain, Madrid: Shein Accessories are pictured in an ephemeral store during its opening at ABC Serrano in Madrid. (dpa)

Online fast-fashion retailer Shein must face the European Union's strictest level of digital regulations, the bloc said on Friday as it added the company to its list of big platforms that need extra scrutiny.

The EU's Executive Commission said it formally classed Shein as a “very large online platform” under the 27-nation bloc's Digital Services Act, an expansive rulebook designed to clean up online platforms and keep internet users safe.

Shein is a low-cost online retailer that was founded in China but is now based in Singapore. It reaches customers mainly through its app. The company said it will “work constructively” to "deliver a safe and compliant environment for our online community.”

“We share the Commission’s ambition to ensure consumers in the EU can shop online with peace of mind, and we are committed to playing our part," Leonard Lin, Shein's global head of public affairs, said in a statement. “We also share a commitment to the principles of transparency and accountability that are at the core of the DSA."

Shein has had a meteoric rise in the West by offering low-cost apparel and household items, primarily targeting younger women through social media partnerships with online influencers and celebrities.

Because it has more than 45 million European users, Shein has to start obeying the most stringent requirements by August. They include taking specific measures to protect online users and assessing and mitigating any “systemic risks” from its services, such as limiting the sale of illegal or counterfeit products.

Shein's obligations also include adjusting its user interfaces and recommendation algorithms to prevent risks to consumer safety and well-being, and filing annual risk assessment reports evaluating potential harm to consumers, especially children, the commission said.

The EU already has 22 tech names including Facebook, TikTok, YouTube, Instagram, Amazon and Google Search on its list of the biggest online services that need the toughest tier of supervision since the DSA took effect last year.

Other online services operating in the EU aren't exempt - they still have to comply with the law's general requirements. Violations are punishable by fines of up to 6% of a company's annual worldwide revenue.


Hermes Q1 Sales Jump 17% on Growth Across Regions

(FILES) An employee holds a USD129,000 crocodile Hermes Birkin Bag for the press to see during a private opening for the new Hermes store on Wall Street in New York 21 June 2007. (Photo by Timothy A. CLARY / AFP)
(FILES) An employee holds a USD129,000 crocodile Hermes Birkin Bag for the press to see during a private opening for the new Hermes store on Wall Street in New York 21 June 2007. (Photo by Timothy A. CLARY / AFP)
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Hermes Q1 Sales Jump 17% on Growth Across Regions

(FILES) An employee holds a USD129,000 crocodile Hermes Birkin Bag for the press to see during a private opening for the new Hermes store on Wall Street in New York 21 June 2007. (Photo by Timothy A. CLARY / AFP)
(FILES) An employee holds a USD129,000 crocodile Hermes Birkin Bag for the press to see during a private opening for the new Hermes store on Wall Street in New York 21 June 2007. (Photo by Timothy A. CLARY / AFP)

Birkin bag maker Hermes reported a 17% surge in first-quarter sales on Thursday, sustaining a rapid growth rate from the previous quarter and underlining strong demand for high end luxury.
Sales rose to 3.81 billion euros ($4.08 billion) for the three months to March 31 and beat expectations for a 13% rise, according to consensus provider Visible Alpha.
One of the most consistent performers in the luxury goods sector, Hermes is known for its ability to maintain strong growth even in the face of deteriorating economic conditions.
Its first-quarter growth far outpaced larger rival LVMH , underlining the strength of businesses operating in the top end of the market and defying broader weakness in key market China.
Sales updates from several leading luxury groups including LVMH and Kering have offered little reassurance that Chinese demand for high-end fashion is bouncing back, Reuters reported.
Hermes, which sells handbags priced at more than $10,000, said its sales in Asia excluding Japan grew 14%, and all other regions reported double-digit rises.
The company saw "slightly softer" traffic in China in March following the Chinese New Year holiday, Eric du Halgouet, executive vice-president finance, told journalists.
However strong demand from wealthier clients offset a reduction in purchases by those seeking more affordable silk items and fashion accessories, he said.


Prada Outshines Rivals with 16% Revenue Lift Boosted by Miu Miu

The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
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Prada Outshines Rivals with 16% Revenue Lift Boosted by Miu Miu

The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)

Italy's Prada defied a slowdown across the luxury sector in the first quarter, reporting booming demand for its high fashion brand Miu Miu and continued growth in Asia.

Family-owned Prada on Wednesday reported sales up 16% to 1.19 billion euros ($1.27 billion) at constant exchange rates, slightly above a 1.14 billion euro consensus cited by analysts.

Its performance contrasts with that of Gucci-owner Kering. The French group on Tuesday forecast a 40% to 45% plunge in first-half operating profit, after first-quarter sales declined. LVMH's sales grew 3% in the first quarter.

For Prada, Europe and Asia Pacific, and in particular Japan, drove the sales growth, while the Americas lagged.

In a post-results conference call Prada echoed comments of other luxury brands saying Chinese shoppers were travelling more and spending more abroad in places like Japan and Europe, reducing sales at home in the holiday period.

Among its brands, flagship label Prada's retail sales grew by 7% in the January-March period, while Miu Miu, which contributes around 15% of total sales, posted an 89% increase.

"Over the first quarter, we delivered a solid performance in a more challenging market environment," Prada Group Chairman Patrizio Bertelli said in a statement.

"While the industry is experiencing new dynamics, we retain our ambition to deliver solid, sustainable and above market growth," Chief Executive Andrea Guerra said.

Guerra told an analyst call that the luxury industry had entered a new phase where strong creativity and a brand's positioning and desirability would drive performance.

He added that the sales trend in April was similar to that seen in the first quarter.

A dual listing, which was expected in Milan, is still on the agenda though not a priority at the moment, CFO Andrea Bonini told analysts, dismissing a press report about a possible triple listing.

The group is not planning to add additional shops this year, while 10-15 store openings for Miu Miu are slated for 2025, and five to 10 for Prada.

Prada shares rose 2.2% on the Hong Kong stock exchange before the results. Since the beginning of January the stock has risen around 37%.