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This week in fashion news: Two luxury retailers are under investigation in Italy, and a German fashion brand struggles under a sales slowdown.
Armani and Dior under investigation
Giorgio Armani and Dior are facing an antitrust investigation by the Competition Authority of Italy. The labels allegedly used unfair commercial practices, Bloomberg reported. The regulator is looking into whether they used suppliers that paid employees “inadequate” wages and made them work in unsafe conditions.
Why this matters: For both Dior and Armani, the trouble seems to have started when subsidiaries of each were separately put under judicial administration for alleged labor violations. The investigation is part of the Italian authorities’ efforts to crack down on luxury brands potentially involved in “unlawful business conduct.”
Balenciaga taps into Apple Vision Pro
Balenciaga is hoping to cash in on the Apple Vision Pro hype, debuting its own app for the headset. It allows users to watch exclusive stereoscopic and drone footage of the label’s Spring/Summer 2025 show, as well as previous collections.
Why this matters: The Apple headset, priced at $3,499 and up, has been on the radar of fashion brands like Gucci—which introduced its own app earlier this year—along with Mytheresa and J.Crew, which both released theirs in February.
Hugo Boss shares drop
Hugo Boss is the latest in a long line of luxury brands impacted by slow sales, particularly in regions like China and the UK. The German label’s share price dropped 11% this week, its lowest level since 2021, as it projected an operating profit of between 350 million and 430 million euros this year. The brand’s earlier projection was from 430 million–475 million euros.
Why this matters: It’s not news that reduced consumer spending and inflation have hit the luxury industry hard. Perhaps the most prominent and recent example of this is Burberry, which not only is reportedly slashing hundreds of jobs, but also abruptly replaced its CEO after a first quarter of dwindling sales.