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This week, FTC blocks Tapestry-Capri Merger, Estée Lauder Cos. names new CEO, and more.
RETAIL NEWS
Hermès Bucks Luxury Slowdown as Sales Gain 11% in Q3, as Loyal Clients in China Upped Spend
What luxury slowdown? Hermès International continues to buck the trend and outpace its peers, reporting sales gained 11.3 percent at constant currency in the third quarter to 3.7 billion euros. That puts the Birkin bag maker well ahead of other French luxury goods players, such as Kering, which reported sales slid 16 percent, and LVMH Moët Hennessy Louis Vuitton, which reported a 4.4 percent drop in revenues in the third quarter. Hermès continues to be boosted by its resilient ultra-wealthy and loyal client base, particularly in Asia and the U.S.
Golden Goose Unveils Second Haus in Mexico City
Golden Goose has taken its Haus concept to Mexico City, installing a cultural and brand-building space in the city’s La Roma neighborhood. Officially unveiled with a grand opening on Thursday night, the Mexican Haus marks the second such location after the brand unveiled its first in Marghera, Italy, its hometown close to Venice, last September.
Accenture Survey Reveals Cautious Optimism Among Holiday Shoppers Seeking Deals
Accenture’s latest read on consumer sentiment revealed some key trends as the holiday shopping season heats up. The firm said in its 18th annual Holiday Shopping Survey that consumers are cautiously optimistic as they plan to spend more than last year while seeking deals. Their focus is on price, value and bargains. The survey, which was based on the sentiment of 1,500 shoppers in the U.S., found that the average household spend for the season is $613, which is 4 percent higher than 2023.
Mulberry to Cut Nearly a Quarter of Corporate Roles
The British handbag maker will lay off around 85 people globally as it aims to chart a path back to profitability after fending off a takeover bid from billionaire Mike Ashley’s Frasers Group.
Off-White and the plight of sold-for-parts brands
Brand management groups like Bluestar and Authentic may talk about big luxury ambitions, but their track records show a lack of necessary patience.
Luxury Fortunes Lose $58 Billion as Pandemic Era Splurge Ends
The fortunes of France’s luxury billionaires — Bernard Arnault, Francoise Bettencourt Meyers, and Francois Pinault — have plummeted by a combined $58 billion this year as consumer demand for high-end goods declines, particularly in China.
The Blocking of the Tapestry-Capri Merger Spells Trouble for American Fashion
The dream of creating an American answer to LVMH and Kering faced a major setback this week after a federal judge championed the Federal Trade Commission’s narrow definition of the sub-luxury handbag market.
Todd Snyder on Building the Next Great American Men’s Brand
The designer launched his eponymous business in 2011 and sales are now approaching $130 million.
A Thirst for Fashion Newness Is Fueling Designer Churn in Luxury
Experts say brands mulling a change must consider governance, partnership and DNA when choosing a new creative leader.
Prada Group Bucks The Luxury Slowdown With Massive Gains at Miu Miu
Strong retail sales in all geographic areas, including Asia Pacific, and the gravity-defying gains at Miu Miu, which soared 97 percent in the period, contributed to a 15 percent increase to 3.83 billion euros.
Luxury Slowdown Could Last Longer Than Previous Crises, Chanel Watches and Jewellery President Warns
In an interview with Swiss newspaper Le Temps, Frédéric Grangié said the industry’s most worrying issue is customer fatigue and the trivialisation of luxury. “Customers are tired of being bludgeoned by luxury,” Grangié said, forecasting two years of difficult business.
Luxury is sinking deeper into a downturn. What now?
The luxury industry is going through a slowdown that has yet to let up, confirmed by recent third-quarter earnings. A number of factors are at play. Consumer confidence in China “is back in line with the all-time low reached during Covid”, LVMH chief financial officer Jean-Jacques Guiony told analysts during the conglomerate’s earnings call on 15 October. Raised prices, a wait-and-see attitude stateside linked to the upcoming election and a stronger yen in Japan, are also contributing to a deceleration in the market.
BEAUTY NEWS
Why L’Oréal’s Meteoric Skincare Growth is Coming Back to Earth
L’Oréal’s dermatological beauty division is usually a blockbuster, but the impact of increased competition and the decline of drugstore distributors on its recent earnings show the company can’t rest on its laurels.
How Luxury Deodorant Is Taking Over the Fine Fragrance Industry
Deodorant has become the unsuspecting first layer for a larger fragrance wardrobe. It's no longer an I-don't-want-to-smell-like-BO need and more of a scent statement. Fine fragrance deodorants, which at the most luxurious end of the spectrum cost roughly $40, are an easy entry point to creating a fragrance wardrobe.
It’s official: Stéphane de La Faverie is the new president and chief executive officer of the Estée Lauder Cos. He will take the reins on Jan. 1, the company confirmed in a statement early Wednesday, as it also announced that William Lauder will step down from his current role as executive chairman of the company and will remain chair of the board of directors, following the company’s upcoming annual meeting of stockholders. After Jane Lauder’s Sunday announcement that she will be departing her role at the company, this means that there will be no family members working in the day to day running of the company for the first time.
Beauty Brands Leave their Mark with Growing Popularity in Peel-Off Lip Stains
Peel-off lip stains and cushion foundation are gaining traction in Google searches, presenting an opportunity for brands, according to Spate.
Private Equity Sees Shining Opportunity in Beauty Contract Manufacturing & Development
Beauty and Personal Care (BPC) is a large, global market that has experienced steady growth and demonstrated strong resilience and was estimated to be worth USD 545 billion in 2023, and anticipated to reach USD 858 billion in 2030. Supporting companies, such as Contract Development and Manufacturing Organizations (CDMOs) and Contract Manufacturing Organizations (CMOs), have hugely benefited from the industry’s growth and as a result, the global cosmetic CDMO and CMO market is projected to grow rapidly, at a CAGR of 6.5% from 2018 to 2030. In this article we explore some of the drivers, including: Indie brands, near-shoring, biosourcing & eco-friendly packaging, BPC and Healthcare, enhanced outsourcing needs in development and formulation, regulations.
Beauty’s 15 Biggest Brands by Engagement on TikTok, Instagram and YouTube
A report by Dash Hudson shows brand engagement rates are growing on both TikTok and Instagram — though only the former is growing in average reach.Brands include Glossier, Gisou, Tatcha, Sol de Janeiro, Byoma, Dae and more.
Why Premium Brands Want to Collaborate with Amazon
According to Circana, one-third of premium beauty customers in the U.S. are routinely shopping on Amazon and so far, in 2024, more than 300 beauty brands have launched in Amazon Beauty. “Of all the retailers out there, Amazon currently has the deepest premium beauty customer penetration of any U.S. retailer. I would think that’s one of the main factors driving these premium brands to Amazon. It’s where their customers are.”
Korean-American Brands Lean Back Into K-Beauty
TikTok’s K-beauty obsession has inspired brands like Glow Recipe, Then I Met You and Peach & Lily to embrace their Korean beauty origins as international retailers renew their interest in the category.
Dior Opens First U.S. Fragrance and Beauty Boutique in SoHo
Dior is betting on brick-and-mortar retail to keep its beauty business’ momentum, and the brand is starting in New York. The prestige brand is opening its first U.S. retail door in New York’s SoHo on Wednesday.
COMINGS & GOINGS
- SA Hospitality Group Hires Former Gucci Americas Executive as CEO WWD
- Good American has appointed Paul Griffin as president WWD
- Draper James Names New CEO WWDB
- Estée Lauder Picks Insider as New CEO WSJ
- The RealReal Names New CEO SGB Media
- Ross Stores Appoints Boot Barn Chief James Conroy as CEO PYMNTS
