Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
Fashion had a somewhat tumultuous 2024. While inflation and rising costs presented challenges for the biggest brands, some were even up against legal battles. In case you missed any of it, here are the highlights.
Executive reshuffles were abound in fashion
If there is one thing you can’t accuse fashion of, it’s being boring. Whether it’s on the runways or in the C-suite, things are always changing. This year, the biggest changes were in the executive ranks as CEOs swapped roles at the biggest luxury brands.
In July, Jonathan Akeroyd was abruptly replaced by Joshua Schulman as the CEO at Burberry after a months long sales slump. Meanwhile, Tom Ford appointed celebrated designer Haider Ackermann as its new creative director, replacing former Creative Director Peter Hawkings, who only held the position for one year.
Over at Alberta Ferretti, the creative director at her eponymous brand stepped down from her position without naming a successor. And French luxury retailer Céline tapped former Polo Ralph Lauren creative director Michael Rider to replace Hedi Slimane.
While executive shifts happen in fashion, these recent and unexpected departures seem to have been motivated by dwindling sales and consumer interest.
Luxury brands took a hit
Speaking of dwindling consumer interest, even the biggest luxury retailers were no match for inflation and a dip in disposable income.
Saint Laurent and Gucci parent Kering in October was downgraded to sell by Goldman Sachs analysts. This was preceded by a seven-year low in September after the conglomerate’s stock dipped 4.3%.
Then there were other top retailers like Hugo Boss, which also saw a drop in its shares and profits as sales in regions like China slowed. Burberry, which saw a 34% decrease in sales, also blamed its underperformance in China as a major factor for the disappointing results.
Lawsuits took over fashion
The beginning of the year was memorable for a major lawsuit against none other than Hermès, which was sued for allegedly violating antitrust laws. The lawsuit was brought by two California women who said sales of its iconic Birkin bag were linked to “sufficient purchase history.”
“Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown a Birkin handbag (in a private room),” the lawsuit claimed. Hermès denied the allegations.
Dior and Armani were also in the limelight because of probes by Italian authorities for allegedly using unfair commercial practices and working with suppliers that did not adequately pay its employees.
Meanwhile, Shein came under investigation for promoting potentially misleading environmental claims on its website.