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This week in fashion news: One major luxury conglomerate continues to report disappointing numbers, and another retailer votes against a workers’ rights proposal.
Zara continues to soar
Zara owner Inditex SA has once again reported high sales numbers at the beginning of Q3. Sales grew 11%, surpassing growth in the previous quarter thanks to consistent demand.
Why this matters: While other retailers like H&M have reported poorer sales numbers, Zara has somehow continued to maintain strong figures and a steady demand since the beginning of the year. In March, Inditex notched an 11% rise in sales and a 5.9% increase in share prices, reaching a record high at the time.
Kering takes another hit
And while there are some brands that keep on winning, others like luxury conglomerate Kering are having a harder time. The Gucci parent recently reached a seven-year low as its stocks dropped 4.3%. Among its portfolio of brands that also includes Saint Laurent, Gucci seems to be one of the hardest hit.
Why this matters: While both VF Corp and LVMH have also reported weaker numbers recently, Kering seems to be particularly affected by higher costs and weakened demand in markets like China. The conglomerate has reported consistently disappointing figures since the beginning of the year with declining sales at some of its major brands.
Nike workers’ right proposal gets rejected
At its annual meeting, Nike shareholders collectively voted down a proposal “to consider joining binding agreements with supply chain workers to better address human rights issues in high-risk countries,” according to Reuters.
Why this matters: Garment worker conditions in countries like Cambodia, Vietnam, and Bangladesh have come into particular focus over the past decade as reports of abuse and unlivable wages abound. After the Rana Plaza collapse in Bangladesh that killed over a thousand workers in 2013, many fast fashion retailers have come under scrutiny for working with local factories that maintain unsafe working conditions.