Hey BoF Professionals, welcome to our newest members-only briefing: The Week Forward. Consider it as your “cheat sheet” to what everybody shall be speaking about on Monday.
THE CHEAT SHEET
Kering Appears to Put Gucci‘s Rocky Month Behind It
It’s been an uncharacteristically bumpy 2019 for Kering and its flagship model, Gucci. Final month, the corporate disclosed it’s difficult a €1.four billion tax invoice stemming from the way it handles of Gucci’s operations in Italy, and on Thursday Gucci was compelled to drag a turtleneck that resembled blackface imagery. These controversies seemingly gained’t have a lot affect on the underside line – shares are up 5 % since Kering’s tax disclosure, and Gucci has constructed up sufficient credibility on social points with its clients to outlive one misstep. Kering is more likely to tackle the tax situation with its outcomes, and clean up its steering on China (recall rival LVMH’s rosy outlook in late January), in addition to updates on efforts to revive gross sales with a Celine-esque reboot of Bottega Veneta, keep momentum at Balenciaga and scale up Alexander McQueen.
The Backside Line: Gucci’s tough month gained’t trigger lasting injury to style’s hottest model, however repeated infractions can erode belief with shoppers over time.
Brexit Vote Haunts London Style Week
Sandwiched between the Baftas and the beginning of London Style Week is the most recent Brexit temperature examine on February 14, the place we’ll see whether or not Prime Minister Theresa Might has managed to sway any extra MPs to assist a modified model of her EU exit deal, which was resoundingly voted down final month. Additional impasse will more likely to result in extra tales like this one, with manufacturers stockpiling imported items within the occasion a no-deal Brexit sends the UK economic system into chaos on March 29. It isn’t probably the most conducive atmosphere for London Style Week, although the business has an extended, storied historical past of shaking off the world’s worries on the runway, if not at all times on the money register.
The Backside Line: On that final word, even when a no-deal Brexit is averted, style retailers can have already suffered (although luxurious manufacturers suppose they’re immune). UK shopper confidence, a number one indicator for spending, is mired at a virtually six-year low, as individuals hoard their financial savings like L’Oreal is stockpiling cosmetics.
Frieze Los Angeles Joins the Style Calendar
Pity the poor A-listers and their grueling journey schedule this week. Between the Baftas in London and the Grammys in LA on Sunday, it is no surprise if publicists are having a bit extra hassle than typical wrangling stars to sit down entrance row at New York style reveals (or that Philipp Plein mistakenly thought he’d booked Kanye West). New to the combo is the Frieze Artwork Truthful’s first West Coast version. Frieze and style go collectively like Tom Sachs and Nike, together with model/artist collaborations (Rimowa is launching an Alex Israel-designed suitcase this week) and retail installations alongside the displays, all geared towards the rich artwork honest crowds.
The Backside Line: Manufacturers could must work additional time for that Frieze gross sales bump, with the most recent iteration occurring smack in the midst of style month (the New York and London editions are in Might and October, respectively).
COMMENT OF THE WEEK
“There’s a handful of people in the [fashion] industry that care about the way their workers are treated. Yes, the responsibility lies on the consumer as well, to not promote and support labels and fashion designers that are not transparent about their approach. [But] the change has to come from within the industry and the consumers will follow, not the other way around.” @priyanka.pandey, commenting on “What Will it Take to Prevent the Next Rana Plaza?”
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