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This week in fashion news: An iconic Parisian label sees a shocking exit and replacement, and LVMH finds a new partner.
Celine has a new artistic director
French luxury brand Celine has a new artistic director—Michael Rider, who exited his role as creative director at Polo Ralph Lauren this year after previously having worked at Celine, is replacing renowned designer Hedi Slimane, who announced his surprise departure from the position just hours earlier.
“Michael’s vision, creative talent, together with his genuine nature and strong connection to Celine’s heritage, make him a natural choice to continue to build a long-lasting success for the maison,” Celine chief executive Séverine Merle said in a statement.
Why this matters: Major executive changes continue to dominate fashion. In recent months, both Burberry and Tom Ford announced a new CEO and creative director, respectively. More recently, Alberta Ferretti departed her namesake label, without a successor.
LVMH partners up with Formula 1
LVMH has found a new, albeit unlikely partner: Formula 1. Beginning in 2025, the duo have come together for a 10-year partnership that will entail sponsorship opportunities for several LVMH brands including TAG HEuer, Moet Henessy, and Louis Vuitton.
Why this matters: Sports seem to be the hottest accessory in fashion right now. Just look to the recently concluded Paris Olympics where brands from J.Crew to Jacquemus and Ralph Lauren all had specific sport collaborations. More recently, Gucci ran a campaign featuring tennis champion Jannik Sinner.
Kering downgraded to “sell”
Despite a luxury rally last week emboldened by China’s stimulus measures, Goldman Sachs analysts remain wary and have warned the industry to not get too confident. Instead, Goldman has downgraded Gucci-parent Kering to sell.
“We expect a difficult six months ahead for the luxury peers,” an analyst said. “The appetite to purchase high-end discretionary goods is dependent upon the health and confidence of the consumer.”
Why this matters: While it might seem harsh, HSBC Holdings Plc analysts have also expressed similar reservations, cautioning brands to not bank on a luxury recovery, especially for conglomerates such Kering, which has been on a losing streak lately, according to Bloomberg. In September, the retailer reached a seven-year-low as its stocks dipped 4.3%. This was preceded by months of dwindling profits and a drop in sales, particularly at its top brands such as Saint Laurent and Gucci.