Lanvin has been struggling financially as a result of slumping sales following Alber Elbaz's surprise sacking in 2015 and upheaval at the house. In 2016, Lanvin's revenues were just €162 million, a 23 percent dive from a year earlier and its first loss in more than a decade (2017 revenues were even lower, according to sources). Now a majority stake has been acquired by Chinese conglomerate Fosun Group last month.
Lanvin has let go of artistic director Olivier Lapidus, less than a year after his initial appointment. The remaining in-house design team will be responsible for the women's collection until a replacement is found. The struggling brand has announced additional leadership changes: Joann Cheng, president of Fosun Fashion Group and chairman of the Lanvin board of directors, will become the interim chief executive of the house. Nicolas Druz, who has served as Lanvin general manager since 2017, will take up the new position of managing director of Fosun Fashion Group to "support the group's current and future business expansion in Europe." Ms Cheng continued "We sincerely thank Mr Druz and Mr Lapidus for their contributions to Lanvin's glorious heritage". "In seeking candidates for the permanent positions of CEO and artistic director, we want to ensure we find people who share the spirit of Lanvin. The re-launch of Lanvin with fresh talents, while adhering to the values that the brand has maintained since 1889, is fundamental to returning the maison to its rightful position at the top table of the world's most lauded and innovative fashion houses."
Macy's is launching a women's line of clothing aimed at Muslim shoppers.
The chain announced it has teamed up with a boutique called Verona Collection and will sell the collection of "modest" dresses, tops, cardigans and hijabs online. The collection will launch on Macy's website on Feb. 15.
The brand was developed by Lisa Vogl, a graduate of Macy's minority- and women-owned business development program, which aims to offer more fashion diversity.
Though Macy's is the first major U.S. department store to sell hijabs, it joins brands like Nike, for example, who aim products at Muslims. Nike launched a high-performance hijab last year made for athletes.
The recent shift to online shopping isn’t working in the interest of retail brand Zara, as its exposes its issues with the fit, product quality and online service, according to Credit Suisse analyst Simon Irwin.
Comments about Zara products “are poor and declining” on consumer-review websites Trustpilot and Sitejabber, the analyst wrote in a note previewing owner Inditex SA’s first-half results on Sept. 12.
“We believe the ‘treasure trove’ nature of a Zara shop is still a better experience off-line,” Irwin wrote. While online is driving like-for-like sales growth, that can have a negative impact on gross margin, he also said.
The broker estimates that the Web will represent about 10 percent of Inditex’s sales this year, up from 2.4 percent in 2013. It also expects 2018 to be the sixth consecutive year of Ebit margin decline.
Inditex shares had their worst week in seven years last week, falling 8.7 percent after Morgan Stanley published a scathing report saying the retailer has gone from great to good.
Credit Suisse lowered its price target to 24 euros from 25 euros and maintained its underperform recommendation.
Representative from Macy's said last week that there are plans in place to close 125 of its stores over the next couple of years and cut minimum 2,000 corporate jobs as a cost-savings effort.
The company said it would close stores in lower-tier malls, and explore new avenues, as it looks to tackle plummeting mall traffic.
The chain, which has been struggling to boost store traffic as consumers opt for online shopping in the United States, has closed more than 100 stores since 2015 and cut thousands of jobs.
"We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams," Chief Executive Jeff Gennette said.
The to-be-closed 125 stores currently account for about $1.4 billion in annual sales, the company said.
It also said it expects annual gross cost savings of $1.5 billion by 2022, with $600 million expected in 2020.
It forecast full-year net sales to be between $23.6 billion and $23.9 billion, below analysts' average estimate of $24.36 billion, according to IBES data from Refinitiv.
Burberry has named Riccardo Tisci as its new chief creative officer, he succeeds Christopher Bailey, who stepped down after 17 years from the creative helm. Having spent more than a decade at Givenchy as a creative director, Riccardo left the brand once his contract expired in January 2018. Givenchy is credited with being one of LVMH's most successful luxury brands.
"I have an enormous respect for Burberry's British heritage and global appeal and I am excited about the potential of this exceptional brand,” added Tisci. “I am honoured and delighted to be joining Burberry and reuniting with Marco Gobbetti ( Burberry’s chief executive ).”
Riccardo will direct all of Burberry’s collections from his new London base, and is expected to present his first for the brand in September.