Capri Holdings reports decline in second quarter revenue

Versace Store Credits: Capri Holdings



Capri Holdings Limited, a US luxury fashion group that owns the Michael Kors, Versace and Jimmy Choo brands, fell short of its own expectations in the second quarter of the current financial year, ended 30 September.


Total sales came in at 1.29 billion US dollars, falling by 8.6 percent compared to the previous year. On a constant currency basis, total sales fell by 10.1 percent. In the retail sector, total sales fell in the high single-digit range, which is primarily due to the declining demand in North and South America as well as issues surrounding the launch of Michael Kors Americas e-commerce.


Sales fall for all three brands




All three brands are affected by the decline: Michael Kors' sales fell by 8.6 percent to 879 million US dollars, Versace by 9.1 percent to 280 million US dollars and Jimmy Choo by 7 percent to 132 million US dollars.


Gross profit totalled 832 million US dollars, compared to 951 million US dollars in the previous year. The gross profit margin also declined, primarily due to lower full-price sales, mainly in North and South America, partially offset by lower supply chain costs.


John D. Idol, chairman and CEO of Capri, said: "Capri Holdings' second quarter results were below our expectations due to macroeconomic headwinds and e-commerce implementation challenges. In early July, we launched a new e-commerce platform for Michael Kors in the Americas. Although we are excited about the long-term benefits, the transition negatively impacted our results in the second quarter. In addition, consumer demand for fashion luxury goods weakened during the quarter, particularly in North and South America."


Diversification through merger with Tapestry




Looking ahead to the coming months, Idol is confident, especially with regard to the planned merger with competitor Tapestry, which includes the Coach, Kate Spade and Stuart Weitzman brands: "We look forward to the successful completion of the merger transaction with Tapestry in calendar year 2024. We are confident that this merger will deliver value to our shareholders and provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company. By joining forces with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands."


In the first quarter of the 2023/24 financial year, the US fashion group Tapestry Inc. was able to increase its sales to a new record level of around 1.51 billion US dollars. Revenue thus increased by 0.4 percent (currency-adjusted +2 percent) compared to the same period of the previous year and reached a new all-time high in the company's history. Growth was driven primarily by the Coach brand.


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Richemont’s director of operations joins executive committee

Cartier boutique. Credits: Unsplash, Simon Launay



Luxury conglomerate Richemont has announced that its group director of operations, Karlheinz Baumann, is to join its senior executive committee, effective November 10, 2023.


Baumann, who oversees the company’s manufacturing, research, customer service and logistics, among other things, will continue to report to Richemont’s chief executive officer, Jérôme Lambert, upon stepping into the role.


Baumann initially joined Richemont in 2008, taking on the role of chief operating officer at the group’s IWC Schaffhausen and working his way up to eventually take on his current position.


Prior to entering the Swiss firm, however, he served as executive director at German automotive supplier, Wilhelm Karmann in 2003.


In a release, Johann Rupert, chairman of Richemont, credited Baumann with successfully transforming the group’s operations over his 15-year tenure at the company.


Rupert continued: “His well-rounded experience and knowledge of the group will be crucial in advancing the group’s decisions on the increasing digitalisation, flexibility and resilience of our operations including in manufacturing and in distribution, notably relating to ‘Luxury New Retail’.


“Other key areas for his contribution will relate to responsible sourcing and innovation as a means to achieve sustainable growth.”


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On to open first flagship in France

On opens first flagship store in Paris. Credit: On Running



Swiss sportswear brand On is preparing to open its first flagship store in France as it continues on the expansion of its global retail network.


The 250 square metre space is located in Paris’ St-Germain-des-Prés district, where the store’s building itself reflects On’s own values, linking nature and local culture.


On’s run collection is housed at the entrance of the site, displayed among product storytelling features and the brand’s footwear try-on experience – a ‘Magic Wall’ system that provides customers with immediate access to all models and sizes.


On opens first flagship store in Paris. Credit: On Running



Further through the store is a round plaza that On said nods to the Jardin du Luxembourg in Paris, where concrete and aluminium blocks aim to allude to hedges and water foundations to give the impression of walking through a garden.


On opens first flagship store in Paris. Credit: On Running



In a release, Bianca Pestalozzi, On’s general manager EMEA, said on the opening: “On Paris is a logical next step for On’s French market, which has great potential for growth.


“We want to continue to connect with the local community and this flagship store will be an undeniable asset for engaging with the Parisian runners, and those visiting the capital for the forthcoming major events, particularly in 2024.”


In light of this, On said that the store, set to open November 17, will act as a hub for Paris’ local run community, where they can gather and explore the brand’s newest innovations.


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New York City to crack down on retail theft through new task force

Fifth Avenue in New York City. Credits: Unsplash



A new task force launched by Mayor Eric Adams is looking to tackle the rising issue of retail theft across New York City after reported cases of shoplifting rose 44 percent between 2021 and 2022.


The task force, made up of elected officials and led by deputy mayor for public safety Philip Banks III, will advise the Adams administration on legislative proposals aimed to address retail theft, ultimately responding to emerging shoplifting trends and ensuring the best practices are implemented throughout the city.


Its mission is to deliver on key recommendations garnered from the data gathered in Adams’ Retail Theft Report, which had been formed December 2022 following a summit with 70 stakeholders who came together to collaborate on related policies and gather research into such crime.


Recommendations outlined in the report include a combination of increased law enforcement efforts and enhanced social service programming and resources designed to prevent shoplifting.


In a release, Adams commented on the most recent collaborative actions taken by the government and other institutions in New York, noting that while retail theft was down this year, there was more work to do.


He continued in his statement: “I am proud to convene this group of experts and practitioners as we continue to take a 360-degree approach to combating retail theft and curbing this serious issue that plagues cities across the country.


“Together, we recognise the importance of safeguarding our businesses, protecting jobs, and ensuring a safer and more vibrant city for all who live in, work in, and visit our great city.”


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Crew Clothing ups new customer sales through tech partnerships

Crew Clothing campaign. Credits: Crew Clothing.



British lifestyle brand Crew Clothing has reported that its purchases by new customers has increased three times over after it struck up new partnerships with select tech companies.


The retailer announced new deals with performance specialists Nest and marketing solutions provider Wunderkind both in a bid to optimise online performance, improve web traffic and retarget among existing customers.


With Nest, Crew looked into developing its paid social strategy, refocusing on raising brand awareness for new customers and shifting budget allocation towards high-quality audiences.


In a release, Ally Bradshaw, digital and customer director at Crew, said: “We challenged Nest with scaling new customer acquisition using paid social – and it delivered a three times increase in purchases from new customers in the first few months, by targeting our next best customers and driving traffic from untapped audiences.”


Through Wunderkind, on the other hand, Crew set out to identify its website traffic, while attempting to grow its addressable first-party customer database, applying the firm’s technology to ultimately expand the reach of its email programme.


According to Crew, the result was a 148 percent increase in revenue generation performance compared to its previous solution, with 7.4 percent of the brand’s total digital revenue now driven by Wunderkind.


Bradshaw added: “By capturing data and using it to nurture consumers, we have been able to provide a personalised shopping experience that keeps shoppers coming back.


“The data we gather through Wunderkind allows us to tailor our content and promotions to the individual needs and interests of each customer.”


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Tod's increases nine-month sales by around 14 percent

Tod's boutique in Saint-Tropez. Credits: Tod's



The Italian fashion group Tod's SpA achieved a double-digit increase in sales in the first three quarters of the 2023 financial year. Strong growth in China and Europe more than offset weak demand in America. This emerged from an interim report that the parent company of the brands Tod's, Roger Vivier, Hogan and Fay published on Wednesday.


In the period from January to September, group sales amounted to 828.4 million euros and exceeded the corresponding previous year's level by 14.3 percent. Adjusted for exchange rate changes, revenue increased by 16.5 percent. All brands contributed to the significant increase with double-digit growth rates.


The growth driver was the Greater China region, which includes mainland China, Hong Kong, Macao and Taiwan. Sales there increased by 25.0 percent (currency-adjusted +29.2 percent) to 264.1 million euros. In Italy it grew by 8.2 percent to 190.6 million euros, in the rest of Europe by 13.1 percent to 180.8 million euros.


In America, revenue amounted to 56.5 million euros, slightly below the level of the same period last year (-0.5 percent, -0.1 percent adjusted for currency effects). In the rest of the world, the group increased its sales by 12.9 percent (currency-adjusted +18.5 percent) to a total of 136.4 million euros, not least thanks to strong growth in Japan.


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eBay Q3 revenues increase 5 percent

Credits: Image: Courtesy of Ebay



eBay Inc. reported third quarter revenue of 2.5 billion dollars, up 5 percent on an as-reported basis and up 5 percent on a foreign exchange (FX) neutral basis.


The company’s gross merchandise volume (GMV) was 18 billion dollars, up 2 percent on an as-reported basis and roughly flat on an FX-neutral basis.


GAAP net income for the quarter was 1.3 billion dollars or 2.46 dollars per diluted share and non-GAAP net income was 545 million dollars or 1.03 dollars per diluted share.


"We delivered another quarter of solid results, and have accelerated the pace of innovation across eBay. In the face of macroeconomic uncertainty, we continue to make meaningful progress against our ambitious vision to reinvent the future of ecommerce for enthusiasts," said Jamie Iannone, chief executive officer at eBay.


The company returned 783 million dollars to shareholders, including 651 million dollars of share repurchases and 132 million dollars paid in cash dividends. eBay's board of directors has declared a cash dividend of 0.25 cents per share for the quarter.


For the fourth quarter, the company expects revenues in the range of 2.47 to 2.53 billion dollars, FX-neutral growth between negative 1 percent to positive 2 percent, diluted GAAP EPS in the range of 70 to 75 cents and diluted non-GAAP EPS between 1 to 1.05 dollars.


For the full year, revenue is expected to range between 10.02 to 10.08 billion dollars, up between 3 to 4 percent FX-neutral, diluted GAAP EPS between 4.53 to 4.58 dollars and diluted non-GAAP EPS in the range of 4.17 to 4.22 dollars.


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Minimum wage for textile workers in Bangladesh up, but far below union demands

Garment workers during the recent strikes. Credits: Sommilito Garments Sramik Federation (SGSF)



Textile workers in Bangladesh must earn at least 12,500 taka per month from the government, according to media reports. It is over 50 percent higher than the current minimum wage, but well below the unions' demand for 23,000 taka. The latter amount would be needed for a living wage in Bangladesh.


The current minimum wage for textile workers is 8,000 taka - equivalent to 59 pounds - per month. At 12,500 taka, this is raised to just over 92 pounds per month. A living wage, however, is 23,000 taka (170 euros), according to experts.


Bangladesh had long been weighed down the protests of garment workers who had been demanding higher wages, also with the support of several trade unions. However, the protests led to unrest and sometimes outbreaks of violence. Two people have already died in the protests.


Bangladesh's textile industry employs nearly four million workers. The country has some 3,500 factories, at which mainly women work. Textile labour is one of the main sources of income for Bangladesh.


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Birkenstock appoints Tiffany Wu as MD Greater China

Credits: Image: Tiffany Wu via Birkenstock



Birkenstock has announced the appointment of Tiffany Wu as managing director Greater China, effective November 1, 2023.


In this newly created position, the company said, Wu will lead the Greater China business area, which includes mainland China, Hong Kong and Taiwan, driving brand equity and sales in the region. She reports to Klaus Baumann, chief sales officer of the Birkenstock Group.


With the new appointment the Germany-based brand aims to further strengthen the company’s expanding footprint in the Asia Pacific region, alongside India and Japan. Today, the company operates a rapidly growing e-commerce business in China, which will be supplemented by a strong owned retail presence and wholesale business with select local partners.


Commenting on Wu’s appointment, Oliver Reichert, director of Birkenstock Holding plc and CEO of the Birkenstock Group said: “Greater China is the strongest growth driver for us in the APMA region alongside India and Japan. With the additional capacity that we can allocate since the go-live of our new plant in Pasewalk in September 2023, we now have the bandwidth to satisfy Chinese consumers' appetite for our products. It's the perfect moment for Tiffany Wu to join the team.”


Wu, the company added, brings over 18 years of fashion and luxury end-to-end omni-channel expertise in China. Wu is an expert in driving brands’ commercial strategy, omni channel expansion, brand building and storytelling through China’s ever-changing digital landscape along with a strong marketing and PR foundation.


Wu began her career with PR agency Ogilvy. After three years with the global PR firm, in 2009 she co-founded a leather goods designer brand called Heirloom and successfully sold it ten years later, when the brand was present in 11 countries.


From 2019 onwards, Wu led the Fung Retailing-Asia Retail Company (ARC), which assisted foreign companies in the Chinese market. In 2021, she took on the role of managing the Greater China region (China, Hong Kong, Taiwan, and Macau) for Blue Nile, the world's largest online diamond sales company.


“As we ramp up our production capacity, we will unlock the large growth potential of China and the whole APMA region, which has generated significant latent demand that we have been unable to fulfil in recent years given more limited supply. Our targeted growth strategies will build upon our growing popularity in the region’s underdeveloped markets, including China, where our brand is nascent,” added Wu.


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Secret Sales enters Ireland in continued expansion

Credits: Secret Sales.



Off-price retailer Secret Sales has taken its first steps into Ireland, continuing on its ongoing expansion plans throughout Europe.


Shoppers in the region will gain access to the marketplace’s exclusive discounts across 450 brands, including both high street and luxury labels, as reported by Business Plus, which initially published the news.


The move comes as the company continues to pursue a more expansive network across the continent, having most recently landed in the Netherlands and Belgium early last year.


Such efforts were bolstered in May 2023, when Secret Sales secured 10 million dollars to help accelerate its European expansion and become the “go-to destination” for non-full price retail in all main markets by 2025.


To take the mission further, the company then acquired Spanish e-commerce platform Dreivip as it began a new merger and acquisition strategy to bring its offering to more brands and retailers.


Speaking to Business Plus, the firm’s CEO Chris Griffin noted that the platform had seen “remarkable growth” this year.


Griffin added: “For the Irish market, there is already a strong consumer appetite for off-price fashion making this a natural expansion fit for our brands and retail partners.”


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Marks & Spencer to open nine stores in November

Credits: Marks & Spencer.



British department store retailer Marks & Spencer is set to open nine new stores during November in what it said will be its “biggest ever store opening month” to date.


The company added that it would be investing 80 million pounds into “sustainable” physical locations, starting with a new 65,000 square foot store in Birmingham’s Bullring, opening November 7.


From then onwards, Marks & Spencer will be opening at least one store every seven days throughout the month, ultimately supporting over 2,200 local jobs across the UK, a press release claimed.


These will include two further store openings, three new M&S Foodhalls and a further three store renewals.


The news builds on the retailer’s ongoing store rotation programme, which has already seen it invest over 500 million pounds into its retail network contributing to the ambition of rotating from operating 247 stores to 180 “higher quality, higher productivity full line stores”.


In the release, the company’s operations director, Sacha Berendij, said: “Stores are key to our business, and we see them as part of our competitive advantage.”


Berendij continued: “To deliver our biggest ever store opening month which supports thousands of jobs is an outstanding effort from the team and shows just how serious we are about accelerating our rotation plans so we are in the right locations for our customers.”


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AllSaints founder Stuart Trevor joins Fanfare Label as non-executive director

Credits: Image: Stuart Trevor via Fanfare Label



Sustainable fashion firm Fanfare Label has appointed Stuart Trevor, founder of AllSaints, as a non-executive director.


"I've been a massive fan of Fanfare Label and Esther Knight since we met about two years ago. I met Esther at her PR showroom in Soho and I was so impressed with her incredible knowledge about sustainability. I absolutely loved the collection and immediately offered to help her with the business in any way I can. We started working together, and I'm looking forward to seeing the business grow,” said Trevor.


Commenting on Trevor’s appointment, Esther Knight, the founder of Fanfare Label, said: "It is a true honour to welcome someone of Stuart's calibre to our team. With his exceptional experience as the founder of AllSaints, Stuart has not only transformed a small label into a globally recognized fashion retailer but also demonstrated remarkable expertise in strategic growth. His valuable insights and innovative approach are invaluable assets as we look forward to an exciting and successful year ahead."


The company said in a release that founded in 2019 by Knight, Fanfare Label, best known for their upcycled denim, is committed to reshaping the fashion industry by focusing on circularity, sustainability, and responsible consumption.


The brand's commitment to sustainability is also reflected in its production practices, with clothing produced in London and organic & recycled jeans in Portugal in a family-run GOTs certified factory, emphasising fair wages, good working conditions, and job opportunities.


Fanfare Label has recently launched the UK’s first ‘Design Your Own Jeans’ service in Liberty.


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Bangladesh protests bring production to a halt for Fashion's top brands

Garment worker protests Credits: Business & Human Rights Resource Centre website




Levi's and H&M are among top global clothing
brands to suffer production halts in Bangladesh, a garment union leader said
Friday, after days of violent protests by workers demanding a near-tripling of
their wages.


Bangladesh's 3,500 garment factories account for around 85 percent of the
South Asian country's 55 billion dollars annual exports, supplying many of the
world's top names in fashion.


But conditions are dire for many of the sector's four million workers, the
vast majority of whom are women whose monthly wages start at 8,300 taka (75 dollars).
Dozens of factories have been ransacked by striking workers, with several
hundred others shuttered by their owners to avoid vandalism.


Among them are "many of the country's bigger factories, who make clothing
for almost all major Western brands and retailers," Kalpona Akter, president
of the Bangladesh Garments and Industrial Workers Federation (BGIWF), told AFP.
"They include Gap, Walmart, H&M, Zara, Inditex, Bestseller, Levi's, Marks
and Spencer, Primark and Aldi," she added.


A Primark spokesperson said the Dublin-headquartered fast-fashion retailer
had not "experienced any disruptions to our supply chain".
"We remain in contact with our suppliers some of whom in turn have closed
their factories temporarily while the unrest continues," the spokesperson
added.


Manufacturers whose factories have been damaged in the protests are
reluctant to give the names of brands they work with, fearing the loss of
orders from buyers.


Police said at least 300 factories had been shut down in the weeklong
protests, which have so far left two workers dead and dozens more injured.
Akter said her union had counted around 600 affected factories.
Protests continued on Friday with thousands of garment workers mobilising
on the streets of industrial neighbourhoods around the capital Dhaka.
Around 3,000 workers attempted to block their colleagues from joining a
factory shift after two major manufacturers -- HaMeem and Sterling groups --
reopened their plants.


"Police fired tear gas to disperse the protesters," a police inspector
charged with monitoring the protests, who spoke on condition of anonymity,
told AFP.


"The two companies declared a holiday for the day and their 25,000 workers
went home."


'Won't help their cause'



Garment workers say that a sharp increase in living costs has left them
struggling to provide for their families.


The Bangladesh Garment Manufacturers and Exporters Association (BGMEA),
which represents factory owners, has offered workers a 25 percent pay raise.
That is significantly short of the 23,000 taka ($209) monthly wage that the
protest campaign has called for.


Police said manufacturers in Gazipur, Dhaka's biggest industrial hub that
saw the worst of this week's violence, had decided to reopen their plants from
Saturday to make up for lost shifts.


"We will deploy nearly 3,000 police and border guards to prevent any
violence," Gazipur police chief Sarwar Alam told AFP.


He urged the workers to stop the violence and find a solution through
dialogue.


"I think the demands of workers are logical. But taking the law into their
own hands won't help their cause," Alam added.


The protests have coincided with separate violent demonstrations by
opposition parties demanding the resignation of Prime Minister Sheikh Hasina
ahead of elections due in January.(AFP)


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