Guess swings to Q1 profit as sales recover

Image: Guess, Facebook US fashion retailer Guess has swung to a profit in the first quarter of the year as its sales almost doubled compared to last year’s Covid-impacted levels. The LA-based company reported net earnings of 12 million dollars for the quarter ended May 1, compared to a loss of 157.7 million dollars reported last year when the pandemic was more severely impacting the US. For a bit of perspective, in the first quarter of 2019 - or pre-pandemic - the company reported a loss of 21.4 million dollars. Revenue at the retailer increased 99.8 percent to 520 million dollars compared to last year - but decreased 3 percent compared to two years ago. Americas retail revenues increased 108.5 percent, while retail comparable sales including e-commerce increased 6 percent. Wholesale revenue increased 75.6 percent. Europe revenue increased 127.1 percent, with retail comparable sales up 44 percent, while Asia revenue increased 37.8 percent, with retail comparable sales up 32 percent. Licensing revenues increased 66.4 percent. The company reported a 5.1 percent operating margin which, compared to the first quarter of 2019, represented an expansion of over 900 basis points. Guess on track to achieve operating margin target “We are extremely pleased with our first-quarter performance, which significantly exceeded our expectations for revenues and profitability across all channels,” said CEO Carlos Alberini in a release. Paul Marciano, co-founder and chief creative officer, added: “We firmly believe that this strong performance is a direct result of the transformational work we have done at the company. “This transformation touched every area of our business, including initiatives to elevate our brand and our product, the acceleration of our e-commerce business, the optimization of our global footprint and brand portfolio, the reorganization of our team globally and the execution of significant cost reductions throughout our operation.” The company said it is on track to achieve its long-term 10 percent operating margin target a year earlier than anticipated. It now expects revenue in the second quarter to be down mid-single digits versus the second quarter of 2019. For the full-year, “assuming no Covid-related shutdowns past the second quarter”, it expects revenue to be down mid-single digits versus 2019 and operating margin to reach approximately 8.6 percent.
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H&M launches Higg Index Sustainability Profile

Sustainable Apparel Coalition H&M has launched the first version of the Higg Index Sustainability Profile across its online stores in Europe and the US, sharing performance scores on the environmental impact of materials used to create its products. The brand is one of the first to apply the new Higg Index Sustainability Profile - designed by the Sustainable Apparel Coalition (SAC) and Higg. Each of the H&M products is given a score based on the environmental impact of the materials used, ranging from baseline to three. The baseline scores are presented to products made from conventional materials while scores of one, two, and three are designated to products crafted with materials that have lower environmental impacts. Customers will also be able to view details on the impacts relating to water usage, global warming, fossil fuels, and water pollution for each product. Pascal Brun, head of sustainability at H&M, said in a statement: “We are thrilled to launch a first version of the Higg Index Sustainability Profile with material environmental performance scores now available on selected products in all 31 European online markets and the US. “This is a major milestone for us and something we have been working towards for a decade. “We firmly believe transparency is key to transforming the fashion industry and we are excited to see this tool further develop so that we can share even more environmental and eventually social data with our customers across our products in the near future.” H&M will continue to increase its use of the Higg Index Sustainability Profile throughout 2021 and 2022.
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Animal relaunches online with eco-friendly offering

Image: courtesy of Animal UK British fashion and lifestyle brand Animal is relaunching for summer 2021 with 400 sustainable products. Poole-based Animal ceased trading a year ago citing an “extremely challenging retail market,” worsened by Covid-19. At the time, previous owners, H Young Holdings PLC couldn’t find any takers for the brand, however, Mountain Warehouse has confirmed that it acquired the fashion and lifestyle retailer earlier this year and is relaunching it online with an eco-friendly offering. New owners Mountain Warehouse said that the Animal UK relaunch comes at a time “where appreciation for the environment is at an all-time high, with lockdown encouraging the public to take solace and inspiration from the outdoors”. Mark Neale, founder of Mountain Warehouse, said in a statement: “We are delighted to welcome Animal to the Mountain Warehouse family. My surfing days may be over, but I still have a few classic Animal pieces from the brand’s heyday. “We are now hugely excited about introducing Animal to a new generation of enthusiasts and I’m sure that our use of recycled and organic fabrics will appeal to today’s conscientious consumer.” Image: courtesy of Animal UK Mountain Warehouse acquires Animal and aims to make it a sustainable fashion brand To relaunch the fashion and lifestyle brand, the new Animal in-house design team have taken inspiration from Animal’s board sports heritage to create a range of authentic, trend-led, and eco-friendly products. The spring/summer 2021 collection includes more than 400 products across categories including men’s, women’s, kidswear, accessories, swimwear, and footwear. Sustainability is at the heart of Animal UK’s evolution, added Mountain Warehouse, and the brand will be using responsibly resourced materials across the range “wherever possible” as well as using more sustainable packaging. Featured in the range are well-established sustainable fabric partners such as Econyl regenerated nylon, Tencel branded lyocell fibres and Lenzing Ecovero branded viscose fibres, as well as organic cotton. Animal has also committed to using 100 percent PFC-free products. In addition, Animal UK has also partnered with ReGain, who help divert product from landfill and contribute to a circular environmental retail model. Image: courtesy of Animal UK Animal UK to focus on sustainability for relaunch following 2020 collapse Highlights from the relaunched spring/summer 2021 collection include some of Animal’s historic bestsellers with an environmentally friendly upgrade such as flip flops, slogan tees, and hoodies, with organic cotton T-shirts and hoodies, and recycled rash vests, swimsuits and jackets. All products will have a 365-day guarantee, added Mountain Warehouse, as part of its promise to deliver on product quality. Sizes range from 6 – 20 for womenswear, XS to XXL in menswear and 5-6 to 13 years for kidswear. Image: courtesy of Animal UK Animal will begin trading on its relaunched website, Animal.co.uk from May 27 with its spring/summer 2021 collection. Its autumn/winter 2021 range will launch in September. While Mountain Warehouse said it plans to keep the two brands separate, it also added that it will be selecting several UK stores to carry a capsule collection of Animal products as part of its plan to re-engage customers. Animal UK first launched in 1987, with a single product designed by two surfers off the coast of Dorset, the ‘Hoop and Loop’ watchstrap, which quickly gained recognition amongst the water sports community. Image: courtesy of Animal UK Image: courtesy of Animal UK
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Megan Key Campos and Nick Lucio launch footwear brand Oncept

Oncept, Facebook Oncept, the brainchild of Megan Key Campos and Nick Lucio has launched in New York City. The duo were previously co-workers and have a combined experience of more than 40 years in footwear design. Oncept has created a new vision of the perfect EDIT. The collection will feature five styles each season and will incorporate thoughtful production and attention to detail. According to the footwear brands website, Oncept is “a testimony to pair down, focus on better things and simplify life in a new emerging world.” Oncept is also considering the environment when it comes to packaging - all shoes are shipped without the use of tissue or plastic materials inside the box. Instead, the brand uses a box made from recycled packaging, and the shoes are placed in a reusable organic tote. The current footwear range includes sandals and sneakers in a palette of botanical hues and neturels. The shoes are available online at Oncept and are priced between 250 dollars and 300 dollars.
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Podcast: Conscious Chatter speaks to designer Mikaela Clark

In this episode, Conscious Chatter speaks to visual artist and designer Mikaela Clark from the handpainted and upcycled fashion brand Hansel about the brand's recent collaboration with Urban Renewal. Listen to the podcast below. Source: Conscious Chatter via Libsyn
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Gap Q1 sales top pre-Covid levels, swings to profit

Image: Gap, Facebook Sales at US fashion and lifestyle retailer Gap topped pre-Covid levels in the first quarter of the year as its markets opened back up, leading to a hike in its full-year outlook. The company said net sales across its brands for the first quarter ending May 1 were up 89 percent to 3.99 billion dollars compared to last year when the pandemic was in full swing. Compared to two years ago - or pre-Covid levels - net sales were up 7.8 percent. On a comparable basis, sales were up 28 percent compared to last year and up 13 percent compared to 2019. The company swung to a net income of 166 million dollars for the quarter compared to a loss of 932 million dollars a year earlier. Breaking the numbers down by brand, the retailer’s namesake label reported a 29 percent increase in comparable sales compared to last year but a 1 percent decrease compared to 2019. Comparable sales at Banana Republic were down 4 percent year-over-year and down 22 percent versus 2019. Athleta and Old Navy shine But the company’s clear winners were its Athleta and Old Navy brands this quarter, with the former reporting a comparable sales increase of 27 percent compared to last year and 46 percent on two years ago, and the latter reporting a comparable sales increase of 35 percent year-over-year and a 25 percent increase compared to 2019. Gap CEO Sonia Syngal was upbeat on the company’s recovery, particularly with the strength of Old Navy and Athleta and the “healthy and growing Gap business in North America”. She also hailed the company’s 82 percent online growth during the quarter, despite the return of store traffic. She said in a release: “And while Active and Fleece continue to soar, we saw a resurgence in summer fashion with dresses rebounding, showing that customers are emerging from the crisis wanting to express their style without sacrificing the comfort and digital convenience they’ve become accustomed to.” On the back of the strong results, Gap has raised its full-year outlook and now expects sales growth to be in the low-to mid-twenty percent range versus 2020.
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La Perla reveals new fragrances, body care products, and makeup

La Perla, Facebook Italian-based lingerie brand, La Perla has revealed it will launch beauty products including a range of fragrances, body care, and makeup. The announcement follows the company’s establishment of a subsidiary dedicated to the beauty business in October 2019, called La Perla Beauty. La Perla and Revlon also ended their partnership in 2020. La Perla Beauty chief executive officer, Peter Shaefer told WWD: “Now is a fantastic time to launch. The market is looking for something new and innovative. Also, it reflects a major shift within the mother brand itself, as it becomes more contemporary and [reaches] out to a greater audience.” The Haute Perfumerie fragrances collection includes eight fragrances that are designed to reflect precious memories and moments. The line is also created using sustainable, natural ingredients and the fragrances come in refillable bottles. “We wanted to create a ‘house of beauty’ - we call it internally - that is worthy of the La Perla artisanal heritage and unrivaled craftsmanship,” Stephanie Fitzgerald, La Perla’s senior vice president brand, product, and digital told WWD. “It’s like the lingerie, [they’re] fragrances for the big and small moments in your life,” she added. The brand announced on social media that the fragrance collection is available exclusively in La Perla boutiques. The color cosmetics line, which includes eight matte, long-lasting lipsticks is reportedly due out in mid-June.
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Video: H&M discusses circular fashion part two

Photo credit: H&M, Facebook In this video, fashion brand H&M has released part two of its discussion about the meaning of the term circular fashion in the fashion industry, presented by model Alva Claire. Watch the video below. Video: H&M via YouTube
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Video: Adidas 'End Plastic Waste' campaign

In this video, German retailer Adidas has released its 'End Plastic Waste' campaign to promote making products that can be remade. Watch the video below. Video: Adidas via YouTube Photo credit: Adidas, Facebook
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Ralph & Russo rescue in doubt, co-founder Tamara Ralph exits

Image: Ralph & Russo The future of British couture brand Ralph & Russo has been cast in doubt after a takeover deal for the business fell through and co-founder Tamara Ralph left the business. According to filings at Companies House, the collapsed company’s administrators were working on a rescue deal and had received five takeover bids. But the leading bidder dropped out just two days before signing the deal, leaving the future of the company uncertain. It is thought the administrators will continue to try to sell the business as a whole but could sell its assets separately if that’s not possible. The filing also revealed co-founder and creative director Tamara Ralph has left the business following a dispute with fellow co-founder and CEO Michael Russo. It comes after the fashion label fell into administration in March with debts of nearly 28 million pounds. The London-based label was hit hard by the pandemic, with the mass cancellation of weddings and other formal events cutting into its sales. The co-founders said in a joint statement at the time: “It is with great sadness that after 11 years we announce that Ralph & Russo has today been placed into administration. “This difficult decision has been made to help ensure the company’s ongoing success and to restructure the business after the retail economy across the world has been badly hit by the Covid-19 pandemic.” Founded in 2010, Ralph & Russo has been a favourite of celebrities over the years, worn by the likes of Angelina Jolie and Jennifer Lopez. In 2017, the label made headlines when the Duchess of Sussex wore one of its black and gold embroidered gowns in her engagement photographs with Prince Harry. The dress cost 56,000 pounds.
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Michael Kors to present live catwalk show during NYFW

Image: courtesy of Michael Kors by Inez and Vinoodh Designer Michael Kors has announced that he will present his spring/summer 2022 collection with a live, in-person catwalk show during New York Fashion Week in September. Kors said in a statement that he wanted to “support” this September’s NYFW and will present his Michael Kors Collection on September 10 at 10am. A location for the show has not been announced, but the designer added that the show would also be brought to life virtually via a digital experience that will be shown simultaneously on michaelkors-collection.com. “This is an important moment for New York, and we’re proud to support the city and the industry during this season’s New York Fashion Week,” explained Michael Kors. “I am thrilled about the return of live performance throughout New York this autumn, and I look forward to presenting my collection to a live audience.” Last season, Kors stepped away from the NYFW schedule, instead opting to celebrate his 40th anniversary with a homage to Broadway in April. The livestreamed event staged in the heart of Midtown under the lights of the Shubert Theater featured a musical soundtrack performance by singer-songwriter and composer Rufus Wainwright with models including Naomi Campbell and Helena Christensen walking down a makeshift catwalk on 45th Street in New York. NYFW designers show support for live catwalk shows this September Kors isn’t the only designer showing his support for live catwalk events and NYFW for September, Kerby Jean-Raymond of Pyer Moss said that he would return to show his Collection 4, and Tom Ford, chairman of the Council of Fashion Designers of America, also announced that he will present his spring/summer 2022 collection with a catwalk show. In an open letter on the CFDA website, Ford said: “New York Fashion Week is always a celebration of American fashion, but this will take on a whole new meaning in September. After two challenging seasons with no in-person gatherings, we anticipate a significant return to live shows. This season’s shows are an opportunity to reaffirm the resilience and independence of American fashion and New York City as a global fashion force. “The talent lineup will be strong with designers returning to the week and, in some cases, to New York. I look forward to presenting my spring 2022 collection during the week. Together, our talent and united front give American fashion its unique character and strength.” The CFDA also announced earlier this month that NYFW would return to in-person shows, produced in adherence to New York State Health Guidelines, along with a continuation of digital collection presentations. Steven Kolb, chief executive of the CFDA, said: “With current signs of progress in the pace of vaccinations and the strategic, gradual reopening and tangible reawakening of New York City, we look forward to a strong fashion season that celebrates the best of American fashion in both physical and digital presentation formats.” Designers rally around New York Fashion Week IMG has also stated that it intends to return to in-person catwalk shows, after two seasons being largely virtual because of the coronavirus pandemic for its NYFW: The Shows which will be sponsored by buy-now-pay-later payment service, Afterpay. Image: courtesy of NYFW: The Shows Leslie Russo, president of IMG’s fashion events and properties, said during a press preview for its September event: “This last year has been an incredible learning experience for designers, it gave everybody an opportunity to take a step back and try different things. I feel like it was a real opportunity to be inventive, to see what works for their brand not. “This is not a one size fits all model, designers need to service their customer in different ways, but it is hard to replace the energy of being in the room for a live show, and what we hear over and over, whether it be a traditional fashion show, presentation or experience is that live is coming back in a big way. “I would absolutely expect a lot of live, and a lot of supplemental digital in the future and I think that they’ll live together, and I think there are a lot of ways that digital can really enhance that experience.” IMG forms fashion alliance to support NYFW IMG has also formed the IMG Fashion Alliance featuring leading American fashion designers including Jason Wu, Proenza Schouler, Rodarte and Telfar who have committed to supporting New York Fashion Week for the next three seasons, from September 2021 through to 2022. Other designers part of the alliance include Joseph Altuzarra of Altuzarra, Brandon Maxwell, LaQuan Smith, Alexandra O’Neill of Markarian, Laura Kim and Fernando Garcia of Monse, Prabal Gurung, and Sergio Hudson. These designers will help “revitalise” NYFW, said IMG and “celebrate the continued unity and ingenuity of the American fashion community, and champion the artistry featured on New York’s global stage for seasons to come”. Russo added: “The IMG Fashion Alliance was formed with one common objective: celebrate the resilience of New York’s fashion and retail industry as we emerge post-pandemic. “There is strength in numbers, and we share and support these designers’ commitment to NYFW as a cornerstone of rebuilding New York’s thriving fashion economy.” An intimate Met Gala for the Costume Institute exhibition ‘In America: A Lexicon of Fashion’ will close New York Fashion Week on September 13. New York Fashion Week will run from September 8 to 13.
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Nordstrom confirms improved sales trends in Q1

Nordstrom press room Nordstrom, Inc. reported a pre-tax loss of 85 million dollars and loss per diluted share of 1.05 dollars. Net sales for the quarter increased 44 percent compared to first quarter of fiscal 2020 and decreased 13 percent from the same period in fiscal 2019. “We are encouraged by sales trends both in our stores and our digital business, supported by an improving consumer environment and strong execution,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc. Highlights of Nordstrom’s first quarter For the Nordstrom brand, net sales increased 37 percent compared with the same period in fiscal 2020, and decreased 13 percent compared with the same period in fiscal 2019. For the Nordstrom Rack brand, net sales increased 59 percent compared with the same period in fiscal 2020, and decreased 13 percent compared with the same period in fiscal 2019. The company’s digital sales increased 23 percent compared with the same period in fiscal 2020 and increased 28 percent compared with the same period in fiscal 2019. Digital sales represented 46 percent of total sales during the quarter. Gross profit of 31 percent increased approximately 2,000 basis points compared with the same period in fiscal 2020 and decreased 260 basis points compared with the same period in fiscal 2019. Nordstrom reaffirms FY21 outlook Nordstrom continues to expect revenue, including retail sales and credit card revenues to grow more than 25 percent. EBIT margin is expected to be approximately 3 percent of sales, while for the first half of the year, EBIT is expected to be breakeven, reflecting approximately 45 percent of total year sales.
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Video: Michael Kors 2021 summer collection

In this video, American fashion brand Michael Kors has released its 2021 summer collection campaign featuring model Bella Hadid. Watch the video below. Video: Michael Kors via YouTube
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Birkenstock co-CEO Markus Bensberg steps down

Birkenstock Birkenstock co-CEO Markus Bensberg has stepped down from the German footwear brand following its acquisition by investment firm L Catterton earlier this year. Bensberg joined Birkenstock in 1991 and took on a variety of management functions, particularly in sales and product development. Since the restructuring of the group at the end of 2012, Bensberg has been at the helm of the company along with Oliver Reichert, who will now be sole CEO. “With Oliver Reichert as CEO, I know that Birkenstock is in the best of hands,” Bensberg said in a statement last month. “I would like to thank our employees, customers and partners. I am proud of what we have achieved together in recent years and thankful that I was able to make my contribution. “After three intensive decades, I am now also looking forward to setting new accents. I also want to give my family, who have often been neglected in recent years, more space in the future.”
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Temperley London to boost e-commerce with Global-e

Image: Temperley London website Luxury womenswear and lifestyle brand Temperley London has announced a new partnership with Global-e, the leading e-commerce platform, to accelerate its direct to consumer trading model. Luca Donnini, chief executive of Temperley London, said in a statement: “With the everchanging marketplace we find ourselves in, and given the lack of a clear perspective with traditional offline distribution, we have decided to invest and boost our direct sales through this exciting partnership with Global-e.” The partnership with Global-e will start on May 25, added the label, and is part of its larger plan to evolve the brand’s direct to consumer trading model and offer a localised shopping experience for clients globally. By using Global-e, which enables and accelerates global, direct-to-consumer cross-border e-commerce growth for international brands, Temperley London will be able to enter new territories, allowing consumers to shop in their local currency and pay for customs and/or duty tax upfront. Donnini added: “This venture represents an exciting new chapter for the brand, allowing us to fulfil our activities efficiently and on a global scale, from managing payments and suppliers to handling customs and import taxes in each country. “Our aim is to double our revenues through this channel and improve the overall customer experience. We’re thrilled to be making this first step in the right direction.”
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Coty luxury brands president Simona Cattaneo to step down

Global beauty company Coty has announced that Simona Cattaneo will be stepping down as luxury brands president. Cattaneo joined Coty five years ago as a chief marketing officer and said in a statement that it’s been a fantastic experience working with so many inspirational people as she progressed within the company. “Coty is fortunate to have passionate and dedicated staff throughout the business and strong relationships with our licensors. As I move on from Coty to pursue other interests, I’m delighted to see the business positioned for future success,” said Cattaneo. Coty’s CEO, Sue Y. Nabi said in a release: “I want to sincerely thank Simona for her leadership, commitment, and passion over the last five years. “She played a key role in building our prestige brands portfolio - expanding our presence in the make-up space and strengthening our relationships with Coty’s licensors, as well as successfully integrating Kim and Kylie’s beauty businesses into our portfolio. “Simona has helped lay the foundations for Coty’s long-term success and we wish her the very best in the next chapter of her career.” Cattaneo will remain in the position until summer 2021, with a replacement yet to be announced.
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Cem Altan to be new president of the International Apparel Federation (IAF)

On May 19 2021, the General Assembly of IAF members unanimously chose Cem Altan to become the next President of the International Apparel Federation. During the 36th IAF Convention, to be held November 6 to 9, 2021 in Antwerp, Belgium, the current IAF President Han Bekke will hand over the IAF presidency to Cem Altan after a tenure of four years extended by an additional year due to the COVID pandemic. Mr. Bekke will remain on the IAF Executive Committee as immediate past president. Cem Altan is founder of Aycem Textiles and he is member of the Board of Directors of both the Istanbul Apparel Exporters Association (IHKIB) and of the Turkish Clothing Manufacturers Association (TCMA). In the boards of both associations, he is tasked with international affairs and therefore he has a strong experience in industry representation on an international level. Mr. Altan has been a member of the IAF Board of Directors since 2014. Additionally, he is head of Istanbul Fashion Week and Koza Young Designers. He holds a textile technology degree from Nottingham Trent University in the UK. He is a manufacturer with a strong association experience and a truly global outlook. IAF chooses a new President after one or two tenures of two years from among the ranks of its Board of Directors. IAF is a global federation that represents, often through their industry associations, the interests of apparel companies in different stages of the supply chain, including brands, retailers and manufacturers. The IAF presidency reflects this diversity. Mr. Bekke is also President of MODINT, the Dutch apparel and textile industry association representing mostly brands. Now, the new President carries the manufacturing segment into the IAF presidency. Following the decision by the IAF General Assembly, Mr. Bekke remarked that he is “delighted that Cem will take over the leadership of IAF and that [Cem Altan] has great support in our membership. With his long standing experience in our supply chain, I am confident that the future of IAF is in good hands with him” according to Mr. Bekke. Mr. Altan remarks that: “It is going to be a challenging two years for me taking over the presidency from Mr. Han Bekke who has led IAF for five years. Especially under COVID circumstances it was difficult for all of our sector to tackle many problems. Under the leadership of Han, we have worked hard to carry the garment industry to a cleaner, greener and more digitalized level. I will take this leadership from where Han left, carrying it further ahead. My new position requires lots of responsibilities, hard work, vision and cooperation.”
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Guess and Microsoft collaborate to launch Guess Z Lab

Guess Europe, the Lifestyle-Tech Competence Center (LTCC) and Microsoft have launched the Guess Z Lab, an innovative concept conceived to collaborate and co-create with Gen Z. The first workshop took place at Guess Europe’s headquarters in Bioggio, Switzerland and included 32 students from Ticino universities USI and SUPSI. A second workshop with international students is planned for autumn, as well as a potential digital insight platform in 2022. Guess Z Lab is one of the first projects by the Lifestyle-Tech Competence Center, of which Guess is one of the founding members, and aims to co-create experiences and products that speak directly to Gen Z consumers, born between 1996 and 2010 that make up around 30 percent of the world’s population. The first workshop saw students alongside Guess employees discussing marketing, sales, e-commerce and advertising to test ideas in a “live design thinking environment,” explained Guess. Paul Marciano, chief creative officer for Guess?, Inc., said in a statement: “We were looking for a project that would connect us with the crucial part of our current and future market but would do so in an innovative way that would feel natural to the digital natives we are trying to reach. “We want the project to be a two-way conversation. We know that we will get extraordinary insights from them, but we also want to give them exposure to the business and show them what it means to build, position, and grow a brand.” Image: courtesy of Guess Carlo Terreni, LTCC president, added: “LTCC was founded with the idea of growing local competencies. This project, in collaboration with local universities here in Ticino, gives us a chance to engage with the Gen Z audience and expose them to the realities of building and positioning a brand. “Any brand which plans to engage with young consumers needs to open up to Gen Zers and actively engage with them, learn how to attract them and support them in their future careers. Our mission at the LTCC is to foster these initiatives in established businesses through collaboration with big tech, and in this case, direct with consumers.” Guess hopes to open up the workshop to international students from the UK, Poland, Germany, Italy, and Spain this autumn, as well as use the Guess Z Lab to help facilitate internships and give students easier access to knowledge about the fashion industry.
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Is Ralph Lauren’s CEO being overly conservative regarding Covid recovery?

Ralph Lauren (NYSE:RL) shares shred almost 10 percent Thursday after the fashion retailer’s CEO Patrice Louvet warned in a call with analysts that “We’re not completely done with Covid.” The company restored their dividend, suspended due to the pandemic, but it wasn’t enticing enough for investors to either buy or hold onto their shares. “This fiscal year, we fundamentally repositioned our company for long-term success—accelerating our digital and marketing capabilities, eliminating structural headwinds, focusing our brand portfolio and realigning our cost structure—all while continuing our brand elevation journey around the world,” Louvet said in the earnings release. After more than a year worth of uncertainty, Louvet’s comments added weariness within the global luxury industry, which otherwise seems to be making a quick rebound as the pandemic eases in Europe and the U.S. It’s worth recalling that The luxury industry was among the worst affected in the pandemic as world economies went into multiple lockdowns at various intervals and companies like Ralph Lauren were forced to temporarily shut their stores. Analysts call Ralph Lauren’s forecast ultra conservative The high-fashion retailer said it expects 2022 revenue to increase approximately 20 percent to 25 percent in constant currency. For the ongoing quarter, it is expected to increase approximately 140 percent to 150 percent in constant currency over last year. In contrast, analysts polled by Thomson Reuters (TSX:TRI) expect net sales to surge 84 percent, to 1.13 billion dollars for the quarter and 31.1 percent, to 5.66 billion dollars for the year. Addressing Ralph Lauren’s forecast, Credit Suisse (NYSE:CS) analyst Michael Binetti pointed out it was “Ultra conservative,” as reported by Reuters. The company’s fourth quarter revenue increased 1 percent, to 1.29 billion dollars, driven by 35 percent growth in Asia revenue. North America revenue in the fourth quarter decreased 10 percent, to 569 million dollars. On a reported basis, net loss in the fourth quarter was 74 million dollars. Ralph Lauren’s shares are back to pre-pandemic levels after the stock gained circa 75 percent in the past months. Although the news was actually fairly upbeat, investors sold the stock, highlighted ‘The Motley Fool’, which wondered if Thursday’s price decline could be explained by the fact that the retailer didn’t live up to the high turnaround expectations built into its stock price over the past few months. Additionally, management did note that top-line weakness in some markets is likely to linger into the first quarter of fiscal 2022 thanks to ongoing coronavirus impacts. Image:Ralph Lauren, U.S. website Image: Ralph Lauren, U.S. website
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Snapchat announces AR try-on and social shopping features

Prada gesture recognition, courtesy of Snapchat Snapchat has announced new augmented reality tools for its users to virtually try on outfits and accessories. Luxury brands like Prada and Farfetch are among the companies that have signed up to use the technology that detects and responds to body movements and facial dimensions. Farfetch is using 3D body mesh and has 40 built-in voice controls to let Snapchat users search for items and then try them on virtually with questions like “ can you show me a windbreaker jacket?“ or “maybe something with a pattern?” Meanwhile, Prada is utilizing gesture recognition that allows shoppers to signal the camera when they want to try on their next outfit. Another feature the social media platform is launching is shopping with friends. This enables shoppers to chat with friends live, share outfits with each other and get approvals on products before purchasing. Companies will also be able to host daily shopping events through “Snapchat Minis” with Poshmark one of the first to use this feature. All of the new features are available for Snapchat users for free, but brands are able to pay to promote their profiles within the app.
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Zalando launches diversity and inclusion strategy

Zalando | FashionUnited Europe´s leading online fashion and lifestyle platform has launched its do.BETTER diversity and inclusion strategy. The plan sets out twelve commitments across four areas including talents, leaders, customers, and partners. The extensive action plan aims to develop an inclusive working space, a variety of leaders who are strong role models, a better shopping experience, and a diverse price, size, and style range. Zalando co-CEO David Schneider said in a statement: “We strive to be inclusive by design, bringing to life the diversity of our talents, leaders, customers, and partners. “We are convinced that enabling greater diversity and inclusion will lead Zalando to better innovation, deeper customer understanding, greater creativity, higher quality decision-making, and also positively influence the fashion industry.” As part of the strategy, Zalando will increase the number of women in tech job families to 40-60 percent by 2023. “We believe that through equity and leadership accountability we can create a workplace that provides an inclusive environment for all employees regardless of gender identities, ethnicity, sexual orientation, disability, parental status, age, languages spoken, neurodiversity, nationality, education, socioeconomic background, faith, health, and other diversity dimensions,” said Zalando chief people officer, Astrid Arndt in a release. Zalando will publish its second annual diversity and inclusion report in autumn 2021.
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