Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
Just like the New York weather, things in fashion change fast. Sometimes big retailers expand; other times, they close up shop. And while it’s impossible to keep track of everything, Retail Brew is here to keep you abreast of the biggest news in fashion and luxury each week.
Over the past week, one fan favorite fast fashion giant saw record profits, while another faltered. And over in Europe, a luxury heavyweight is betting on beauty.
Inditex profits soar
We’re barely into spring, yet Zara’s parent company, Inditex, yesterday reported an 11% rise in sales from February 1 to March 11. Following the news, the fast fashion retailer’s share price rose as much as 5.9%, reaching a record high on Wednesday.
Why this matters: The retailer credited the popularity of its more premium-priced products for its growth, while noting it planned to sustain that growth by opening new stores in Los Angeles and Las Vegas.
Despite the emergence of Shein and Temu, premium-priced retailers have found a special place in American consumers’ hearts and wallets. On Monday, Mango reported $3.4 billion in sales in 2023, thanks to its widespread US expansion. The brand cited the upmarket audience for its partywear and fashion pieces as a reason for its success, Retail Brew reported.
Celine bets on beauty
In France, luxury fashion house Celine is looking to makeup to strengthen its beauty portfolio with its cosmetics line, Celine Beauté, debuting this fall.
Why this matters: While the brand already has a fragrance collection, complete with perfumes and candles, this marks its entrance into the makeup category, which has boomed in recent years. In fact, makeup was the fastest-growing category in prestige beauty in the US last year, according to Circana, and many high-end fashion brands, including Miu Miu, Valentino, and Prada, have launched their own makeup lines.
Trouble at Victoria’s Secret
Last week, Victoria’s Secret share price dropped as much as 28% after the lingerie retailer’s full-year sales guidance of $6 billion fell short of analysts’ expectations, Bloomberg reported.
Why this matters: Although the retailer has worked hard to revamp its image, it seems it’s had trouble reconnecting with its consumers and regaining their trust.