Retail news that keeps industry pros in the know
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This week in fashion news: One fast fashion e-commerce brand hires former EU official as a consultant, while a major fashion retailer appoints a new CEO.
Shein hires EU official for lobbying: As Shein prepares for its IPO in the UK, the retailer has hired a former EU budget commissioner to act as a consultant in its lobbying efforts, Bloomberg reported. The consultant is reportedly helping Shein with a number of issues, including “the bloc’s policy environment” and possible customs taxes on cheap packages.
Why this matters? The impending IPO could potentially value the company at £50 billion ($64 billion). Meanwhile, the EU commission has kept an eye on fast fashion retailers over the past few years. It has been under scrutiny here in the US, where lawmakers have urged the SEC to look into labor violation claims.
Victoria’s Secret has a new CEO: Lo and behold, Victoria’s Secret & Co has a new CEO—not just anyone, but Hillary Super, the former CEO at Rihanna’s Savage X Fenty. Super, who will replace Martin Waters next month, is expected to lead the brand’s turnaround efforts. “[Super will] power the business’ next chapter and deliver the foremost tenet of our transformation strategy: accelerating growth in our core business in North America,” Victoria’s Secret board chair Donna James said in a statement.
Why this matters? Earlier this year, the brand’s share price slipped 28% after its full-year sales guidance of $6 billion fell below analyst projections. But the retailer has been on a mission to rebrand—and distance itself from its decades-long history marked by alleged sexism, discrimination, and promotion of unrealistic beauty standards.
Capri Holdings sales drop: Sales for Jimmy Choo and Versace parent Capri Holdings were down 12% YoY in Q1. The retailer didn’t provide any guidance or host an earnings call with investors, “citing its pending deal to sell to rival Tapestry for $8.5 billion,” BoF reported. It’s up against significant challenges from the FTC, which sued to block the deal.
“We were disappointed in our first [fiscal] quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods,” John Idol, Capri’s CEO, said in a statement. “We are continuing to manage our expenses and inventory levels carefully in light of the challenging global retail environment.”
Why this matters? Capri is certainly not the only luxury conglomerate to see its sales falter in 2024. Over in the EU, both LVMH and competitor Kering have reported dwindling sales and falling share prices this year.