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This week in fashion news: One fast fashion retailer’s profits soar, while a French luxury house gets a new CEO.
Abercrombie continues to win
After a phenomenal Q1 in which it exceeded sales estimates, Abercrombie & Fitch has raised its net sales outlook for the rest of the year from a previously estimated 4%–6% to 10%, the company said. The fashion retailer’s first quarter revenue grew to $1 billion, as same-store sales rose 29%.
Why this matters: The impressive sales growth comes as the trendy brand has struck a chord with younger consumers, and its affordable pricing is just the cherry on the top for cash-strapped consumers. Meanwhile, luxury retailers are struggling as consumers pull back on discretionary spending amid inflation.
Louis Vuitton has a new CEO for Americas
Louis Vuitton tapped Megan Grant as its new president and CEO of Americas. She took over for Lanessa Elrod, who served in the role for seven years, WWD reported. Grant, who was previously president at L’Oréal USA’s luxe division, also had stints at brands including Lancôme, Kiehl’s, Ralph Lauren Fragrances, and Giorgio Armani beauty.
Why this matters: LVMH, the parent company of Louis Vuitton, has made a considerable number of executive reshuffles over the last few years. In 2023, for instance, the conglomerate hired ex-Loro Piana exec Giulio Bergamaschi to take over the CEO job at Acqua di Parma. And earlier this year, the conglomerate appointed Michael Burke, the former CEO of Louis Vuitton, as CEO of LVMH Fashion Group, though he recently left the role after just four months.
H&M-backed Syre raises $100 million
Syre, a polyester recycling company backed by H&M group, has raised $100 million in its Series A round. The new funding will allow the company to support a new pilot plant in the US. Launched in March, the company is also backed by “purpose-led” investor Vargas, and aims to mass-produce recycled fabrics such as polyester on a large scale, potentially helping curb the enormous carbon emissions the fashion industry is responsible for.
Why this matters: Both fast fashion and luxury brands have accelerated their investment in sustainable and innovative materials in an attempt to mitigate damage to the environment. Fabrics like mushroom leather and soy cashmere are becoming increasingly common, with brands like LVMH and Dolce & Gabbana funding research to promote their wide-scale adoption.