UK probes Amazon partnership with AI firm Anthropic

Amazon building. Credits: Amazon.



London - Britain's competition regulator on Friday said
it had launched an inquiry into a partnership between US e-commerce giant
Amazon and Anthropic, an American developer of artificial intelligence.


The move comes after the Competition and Markets Authority in April said it
was examining tie-ups between artificial intelligence firms and their US big
tech partners Amazon and Microsoft.


Action by the CMA follows similar examinations by regulators in the United
States and European Union.


In a statement Friday, the British regulator said it was considering
whether the Amazon-Anthropic partnership "has resulted, or may be expected to
result, in a substantial lessening of competition within any market or markets
in the United Kingdom for goods or services".


This follows Amazon's investment of up to $4 billion in Anthropic, which is
developing a rival to ChatGPT-style AI chatbot.


Amazon hit out at the decision, saying in a separate statement that its
"collaboration with Anthropic does not raise any competition concerns or meet
the CMA's own threshold for review".


It added: "By investing in Anthropic, Amazon, along with other companies,
is helping Anthropic expand choice and competition in this important
technology."


Anthropic insisted it was "an independent company", while promising to
"cooperate with the CMA and provide them with a comprehensive understanding of
Amazon's investment and our commercial collaboration".(AFP)


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Capri Holdings sees ‘disappointing’ drop in Q1 revenue, slides into red

Michael Kors store on Regent Street, London. Credits: Michael Kors.



“We were disappointed with our first quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods,” John Idol, Capri Holding’s chairman and chief executive officer, began in a statement to the press as the company slid into the red. Indeed, the luxury group continued to tackle dampening demand during the quarter ended June 29, 2024, after seeing impact from the “challenging global retail environment” that has already been ravaging its financials over the past year.


For this first quarter of fiscal year 2025, Capri reported a 13.2 percent drop in revenue compared to the same period last year, amounting to 1.07 billion dollars. On a constant currency basis, total revenue fell 12.1 percent. Gross profit, meanwhile, also took a hit, dropping from 812 million dollars to 689 million dollars, while gross margin fell from 66.1 to 64.6 percent.


Capri fell into the red as its net loss grew to 14 million dollars compared to a prior net income of 48 million dollars. Adjusted net income was four million dollars, down from 88 million dollars in the year prior. Loss from operations came to eight million dollars, with an operating margin of -0.7 percent, compared to a prior income from operations of 80 million dollars and operating margin of 6.5 percent.


Versace takes biggest hit with 15.4 percent drop in revenue




Versace took the biggest hit over the period, with revenue dropping 15.4 percent to 219 million dollars on a reported basis and 14.3 percent on a constant currency basis. Retail sales for the brand decreased high-single-digits, while wholesale revenue decreased to double-digits. Operating loss for the label came to 17 million dollars, with an operating margin of -7.8 percent.


Michael Kors was next to follow, seeing revenues fall 14.2 percent on a reported basis to 675 million dollars. Retail sales declined to low-teens, while wholesale revenue decreased to high-teens. Jimmy Choo was the least impacted. The shoe brand’s revenue dropped 5.5 percent to 173 million dollars, with retail sales falling to mid-single digits and wholesale revenue in the low-single-digits.


Idol further addressed Capri’s attempt to takeover luxury competitor Tapestry, which has been contested in a lawsuit brought by the Federal Trade Commission (FTC) in the US. Idol reaffirmed the company’s decision, commenting: “As we previously stated, Capri intends to vigorously defend this case alongside Tapestry and we look forward to the successful completion of the pending acquisition. This combination will deliver value to our shareholders as well as provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company. By joining with Tapestry, our brands will have greater resources and capabilities to accelerate the expansion of their global reach while preserving their unique DNA.”


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Fossil sales continue decrease despite transformation plan ‘progress’

Fossil store. Credits: Fossil



Fossil Group has outlined its results for the second quarter ended June 29, 2024, a period in which the lifestyle brand has continued to carry out a transformation plan and strategic review contributing to results that fell in line with expectations, according to interim CEO, Jeffrey Boyer.


In a press release, Boyer said the “strong execution” of the initiatives, which he further noted the company had made “continued progress” on, had aided in gross margin expansion, cost reduction and adjusted operating margin improvement for the quarter.


Gross margin, for example, increased 390 basis points to 52.6 percent versus 48.7 percent a year ago, driven by projects under the Transform and Grow Plan (TAG), including the company’s exit from the smartwatch category.


Operating loss slightly narrowed from the prior 35.3 million dollars to 34 million dollars, akin to the slight reduction in adjusted EBITDA, which fell from 15.4 million dollars in the same quarter of the year prior to 11.7 million dollars. Net loss totalled 38.8 million dollars, however, up on 2023’s 26.5 million dollars.


A similar sentiment could be seen for net sales, which decreased 19.3 percent over Q2 to 260 million dollars, compared to last year’s 322 million dollars. Fossil attributed the smartwatch category exit and store rationalisation initiatives as the cause.


Asia took a particular hit, with sales dropping 20 percent. This was compared to further declines in the Americas and Europe, where sales fell 18 and 15 percent respectively.


For the full year 2024, Fossil is anticipating its net sales to be approximately 1.2 billion dollars, reflecting “consumer and channel softness”. Its operating margin, meanwhile, is forecast to be in the range of -3 to -5 percent.


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Under Armour revenues decline 10 percent in the first quarter

Under Armor store in Leidschendam, The Netherlands Credits: Under Armour



First quarter revenue at Under Armour was down 10 percent at reported and currency neutral basis to 1.2 billion dollars.


Gross margin for the quarter increased 110 basis points to 47.5 percent, operating loss was 300 million dollars and adjusted operating income was 8 million dollars.


First quarter net loss was 305 million dollars, adjusted net income was 4 million dollars, diluted loss per share was 70 cents and adjusted diluted earnings per share were 1 cent.


"We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations," said Under Armour president and CEO Kevin Plank.


Under Armour’s Q1 revenues down in North America and internationally




The company’s North America revenue decreased 14 percent to 709 million dollars and international revenue decreased 2 percent to 473 million dollars . In the international business, revenue in EMEA was flat, down 10 percent or 7 percent currency neutral in Asia-Pacific and up 16 percent or 12 percent currency neutral in Latin America.


Wholesale revenue for the quarter decreased 8 percent to 681 million dollars and direct-to-consumer revenue was down 12 percent to 480 million dollars. The company’s owned and operated store revenue declined 3 percent and ecommerce revenue decreased 25 percent, representing 34 percent of the total direct-to-consumer business for the quarter.


Apparel revenue decreased 8 percent to 758 million dollars, footwear revenue was down 15 percent to 310 million dollars and accessories revenue was down 5 percent to 93 million dollars.


Under Armour updates fiscal 2025 outlook




For the year ahead, Under Armour said revenue is expected to be down at a low double-digit percentage rate. This includes an expected 14 to 16 percent decline in North America and a low-single-digit percent decline in its international business, including flat results in EMEA offset by a high-single-digit decline in its Asia-Pacific business.


Gross margin for the year is expected to be up 75 to 100 basis points and operating loss is expected to be 194 to 214 million dollars, while adjusted operating income is expected to be 140 to 160 million dollars.


The company added that diluted loss per share is expected to be between 53 cents and 56 cents and adjusted diluted earnings per share are expected to be between 19 cents and 22 cents.


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Groovify: LCI Barcelona develops app that transforms fashion looks into music using AI

Groovify, an artificial intelligence app developed by LCI Barcelona, at Sónar+D. Credits: Groovify.



Music is a constant companion that helps us express our identity, connect with others and form communities, just like fashion, where fashion shows, advertising campaigns and even shopping experiences wouldn't be the same without its soundtrack.


This relationship between the two is reflected in how we associate certain styles such as leather jackets with rock fans, or how Taylor Swift fans were inspired by one of the singer's 'eras' when choosing what to wear to the concert.


A research group at LCI Barcelona has explored this connection to develop an artificial intelligence tool capable of generating playlists based on a person's look. This system is called Groovify and was presented at the Sónar+D festival.


This AI-powered tool "analyses a simple photograph of a person to extract data such as the clothes they are wearing, their facial expression and their posture. With this information, a playlist is created with songs personalised for that individual", a spokesperson at LCI explains.


A unique rhythm for every style




The algorithm behind Groovify analyses clothing styles by detecting visual codes, correlating this information with a vast music database from the Sonar Festival, spanning three decades. "A person's look is not only made up of trousers and an upper garment, but also accessories and complements," Alessandro Manetti, head of Europe at LCI and recently appointed vice president of LCI in Europe, told FashionUnited.


"Our professor specialised in artificial intelligence proposed to develop an algorithm and from the fashion area we proposed to associate this algorithm to a reading of the different looks, of the different styles of the garments through the detection of visual codes," adds Manetti.


The application then creates up to five different prompts that generate a unique single for each person, generating a rhythm and sounds that represent the look of the photographed user.
"We wanted to go beyond simply generating suggestions based on clothing style, we sought to create an unreleased track generated by artificial intelligence and pay homage to vinyl with an imaginary cover."


The result includes not only the suggestion of playlists based on a person's clothing style, but also the creation of a mobile application that could recommend music tailored to the user's look, as well as the creation of a completely new song, created by artificial intelligence and based on the database of Sonar artists. This unreleased music would also be accompanied by an imaginary cover designed using image-generating applications.


The process of associating style and music is based on an exhaustive research of existing databases, analysing styles, music, covers and visual codes in discographies and photographs of concerts and audiences. Manetti explains: "We wanted to go beyond simply generating suggestions based on clothing style, we sought to create an unreleased track generated by artificial intelligence and pay homage to vinyl with an imaginary cover".


The response to the project at the Sónar Festival was very positive, both from the public and interested investors. The technology used is a proprietary algorithm, which has increased interest due to its exclusivity and originality. Looking ahead, the project's developers plan to launch an improved version, 2.0, in October.


Groovify 2.0 will be released in October




This new version will expand the database to include additional sources such as Spotify, YouTube and Beatport, with the aim of making the app more relevant and useful in the market. In addition, the team is preparing to participate in the Web Summit in Lisbon in November, where they will present the beta version of the app and look for partnerships and business opportunities.


The project, led by Alessandro Manetti and coordinated by Mariele Violano, is supported by area managers Pedro Coelho, Estel Vilaseca, Anna Pallerols, David Carretero and Salvatore Elefante. The team is made up of 19 people, including six students working in graphic design, interior design, user service and setup and teardown.


This article was originally published on FashionUnited.ES. Translation and edit from Spanish into English by Veerle Versteeg.


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Not to be sniffed at: Dolce & Gabbana launches 99 euro dog perfume

Domenico Dolce en Stefano Gabbana during the D&G Menswear Fall Winter 2024. show Credits: Launchmetrics/ Spotlight



Rome - No need to wrestle your dog into the bath
anymore. Italian luxury fashion house Dolce & Gabbana has launched a new
perfume for canine companions.


The "alcohol-free scented mist for dogs" is on sale for 99 euros and comes
with a free collar -- but also a warning from animal rights activists, who say
it could cause pets distress.


"I am delicate, authentic, charismatic, sensitive," the video advertising
the scent begins as it shows sleek and soft Bichon Frises, Dachshunds and
Chihuahuas posing on a stool.


"Cause I'm not just a dog, I'm Fefe," it ends.


The perfume is named after the dog of the brand's co-founder Domenico Dolce
and blends "fresh and delicate notes" of ylang ylang, musk, and sandalwood.
"It's a tender and embracing fragrance crafted for a playful beauty
routine," the company said.


But international animal rights charity PETA said "squirting (dogs) with a
fragrance designed to please humans, as this is, can upset them greatly."


Dogs "have hundreds of millions more receptors in their nostrils and can
smell 10,000 to 100,000 times better than humans," PETA founder Ingrid Newkirk
said in a statement to AFP.


Perfumes sprayed on their fur "can cause them irritation and distress and
interfere with their ability to detect other smells in their environment and
communicate with other animals they encounter," she said.(AFP)


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House of Baukjen named highest-scoring SME fashion B Corp globally

Baukjen campaign image Credits: Baukjen



House of Baukjen, the purpose-driven London-based fashion company featuring womenswear maternity wear brands Baukjen and Isabella Oliver, has been recognised as the highest-scoring fashion small and medium-sized enterprise (SME) B Corp in the world.


The British fashion company received a B Corp score of 153.6, which propels the sustainable and socially conscious womenswear brands into the top five global fashion B Corp companies including Patagonia.


House of Baukjen, which has been B Corp certified since 2021, saw its score increase by 42 percent following its most recent recertification, underscored by its dedication to people and the planet, alongside its desire for scientifically backed, cutting-edge solutions to reduce its environmental footprint.


In a statement, the family-run fashion business said it had reached the “extraordinary milestone” by adding a fourth ‘Impact Business Model’ (IBM) to its B Corp profile, described as a rare feat in the B Corp community.


Baukjen campaign image Credits: Baukjen



Baujken continues to showcase excellence in responsible fashion




Key aspects that helped to drive the impressive score was its continuous approach to sustainability, such as sourcing and partnering with its pioneering Portuguese manufacturers to add innovative dyeing technologies to their current practices. This new approach requires fewer and cooler washes, slashing supplier and dyehouse emissions by 50 percent. According to the House of Baukjen sustainability department, if adopted industry-wide, this dyeing auxiliary could cut the global fashion sector’s carbon footprint by 6.7 percent.


That innovative approach to its collections can also be seen with its upcoming autumn/winter 2024 collection, which the fashion house states is its most sustainable to date, with recycled, organic, regenerative or certified fibres forming the majority of its pieces.


Baukjen campaign image Credits: Baukjen



This builds on the brand’s ‘Baukjen Lab’ collection utilising low-impact, "future-focused" fabrics introduced last November. The innovative and responsible collection seeks next-generation solutions and alternatives to carbon-heavy options, such as Nativa Regenerative Wool, H2Color, and Tencel denim. For AW24, ‘Baukjen Lab’ will be adding 100 percent recycled PET sequins.


House of Baukjen also offers its consumers pre-loved, rental and subscription services, and introduced a Sustainability Index, sharing environmental and social impact scores for each product in its collections to help customers make better-informed purchasing choices. The brand rates every product using Life Cycle Assessment data to calculate water, chemical and carbon footprints.


The company is also an active member of the Fashion Pact, the United Nations Fashion Charter for Climate Action, the Science-Based Target Network and the Terra Carta programme working to drive lasting, positive change in the fashion industry.


Baukjen campaign image Credits: Baukjen



House of Baukjen receives a B Corp score of 153.6 in strong recertification




Geoff van Sonsbeeck, chief executive and co-founder of House of Baukjen said in a statement: "We are incredibly proud of this achievement. You can’t cheat a B Corp certification; you can't greenwash this - you have to earn it.


“This recognition proves our dedication to truly balancing people, planet, and profit."


For companies to be certified as B Corp they must demonstrate high social and environmental performance, make a legal commitment to change their corporate governance structure to be accountable to all stakeholders, not just shareholders, demonstrate that they use profits and growth to a greater end, and exhibit transparency across its practices, supply chain and input materials.


The certification process addresses every aspect of the business in five key impact areas: Governance, Workers, Community, Environment, and Customers.


Van Sonsbeeck added: "B Corp itself is not the end game; what matters is the journey towards a better world. For the sake of the planet and the people, we encourage other businesses to join us on the B Corp journey and become better businesses. Better Business, for Good.


"We believe in change and hold ourselves accountable. There's no going back from here; it's about continuous progress. This certification is part of the multiple external commitments that we pledge to."


Baukjen campaign image Credits: Baukjen


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Allbirds enters next phase of transformation as losses narrow despite revenue dip

Credits: Allbirds



For the second quarter ended June 30, 2024, sports footwear brand Allbirds continued to tackle declining revenues amid an ongoing transformation plan that is now embarking on its next phase. While some positivity could be seen in narrowing losses for the period, which dropped to 19.1 million dollars from 28.9 million dollars in the same period of the year prior, net revenue took a 26.8 percent hit, falling to 51.6 million dollars compared to its previous 70.5 million dollars.


The decline was attributed to lower unit sales within the direct business, which had partially been offset by higher average selling prices, while international distributor transitions and planned retail store closures also impacted the final results. Still, CEO Joe Vernachio said that there had been “operational and financial progress” in the quarter due to the “strong execution against [the company’s] strategic transformation plan”, for which it will be entering the next phases focused on “making great product, telling compelling stories and providing customers with an engaging shopping experience”.


Further good news could be seen in the narrowing of Allbirds’ adjusted EBITDA, which reduced from a loss of 18.3 million dollars last year to 13.7 million dollars. This, however, contrasted a decline in gross profit, which fell from the prior 30.1 million dollars to 26.1 million dollars. The company’s restructuring expenses totalled one million dollars, remaining on par with Q2 of 2023.


Allbirds ups gross margin guidance as CEO expresses confidence




Looking ahead, Vernachio expressed optimism, stating in a release: “As we focus on reigniting our product and brand, we are encouraged by the strong consumer response to our recent new offerings. This makes us confident that our fresh, updated products coming to market beginning next year will build on that momentum. We believe the combination of elevated product, storytelling and customer experience in the coming quarters will position the business to return to top line growth in 2025 and enable us to build long-term shareholder value.”


The company has increased its full year 2024 gross margin guidance, which is now anticipated to be between 42 to 45 percent, while adjusted EBITDA is expected to come to a loss of 75 million to 63 million dollars, compared to its prior range for a loss of 78 million to 63 million dollars. Net revenue for the third quarter is expected to sit between 40 and 43 million dollars.


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