Weekly Spotlight: Piccioli Exits Valentino, Hermès Lawsuit, Kering & Gucci’s Dip, and More
1. Pierpaolo Piccioli is leaving Valentino After Nearly 8 Years as Creative Director
Pierpaolo Piccioli is leaving his position as the creative director of Valentino after an impactful tenure of almost eight years, marking the end of a 25-year chapter with the iconic Roman couture house. This departure is described as a mutual decision by the company, which also hinted at an upcoming announcement regarding a new creative configuration. Piccioli, who initially joined Valentino in 1999 to oversee accessories with Maria Grazia Chiuri, was elevated to co-creative director in 2007 and then assumed sole leadership in 2016 after Chiuri moved to Dior. During his time at Valentino, Piccioli has been celebrated for his vision and creativity, significantly shaping the brand’s modern identity and legacy. His exit comes after Kering acquired a 30% stake in Valentino in a deal that underscores the brand’s high valuation and ongoing evolution within the luxury fashion landscape.
2. Hermès Sued Over Alleged Unfair Sales Tactics for Birkin Bags
In a recent class action lawsuit in the United States, luxury fashion house Hermès faces allegations of unlawful “tying” practices, accused by two California shoppers of requiring customers to purchase ancillary items from other product categories — like apparel, scarves, and homeware — before allowing them the opportunity to buy its highly coveted Birkin handbags. This practice is claimed to violate US antitrust regulations, which prohibit bundling goods or mandating additional purchases as a condition of buying a sought-after item. The complaint highlights Hermès’s sales commission structure, suggesting it incentivizes associates to push sales of other items, as they do not earn commissions on Birkin sales. Despite years of buyer complaints on social media and handbag forums about this sales strategy, Hermès denies any wrongdoing, stating it strictly prohibits conditional sales. The company emphasizes its effort to deter resale activities by ensuring its iconic bags are sold to “real” clients, amidst broader industry scrutiny over similar sales tactics by other luxury brands, including watchmaker Rolex.
3. Kering‘s Stock Tumbles 14% as Gucci Forecasts 20% Sales Drop in Q1 2024
Kering’s shares plummeted by 14% following an announcement that Gucci, a key brand within the conglomerate, anticipates a 20% decrease in sales for the first quarter of 2024, particularly due to significant declines in the Asia-Pacific market. This downturn led to a substantial €7.9 billion drop in Kering’s market value and negatively impacted other luxury stocks. Despite efforts to rejuvenate Gucci with new creative direction under Sabato De Sarno and CEO Jean-François Palus, initial consumer reception to the brand’s shift towards more upscale, classic products has been lukewarm. Kering remains hopeful, citing a “highly favorable reception” to De Sarno’s new designs, though analysts suggest that the positive feedback is overshadowed by broader market challenges. The full impact of these changes will be detailed in Kering’s upcoming Q1 2024 financial report, set for release on April 23.
4. Outdoor Voices Faces Bankruptcy Amid Financial Struggles
Outdoor Voices, a once-prominent activewear brand known for its colorful athleisure wear, is reportedly on the brink of bankruptcy according to Sourcing Journal, with former employees revealing the company’s critical financial state. Amidst mounting debt and cash flow issues, the brand has recently shut all 16 of its retail stores, shifting focus to e-commerce, and has laid off a significant portion of its corporate staff. Founded in 2014 and once celebrated among Millennials, the company’s journey included high-profile investments and an initial surge in popularity. However, challenges in profitability and customer acquisition, alongside operational struggles post-founder Tyler Haney’s exit and subsequent leadership changes, have led to its current predicament. Despite efforts to seek buyers and restructure under new majority stakeholder Ashley Merrill, Outdoor Voices’ financial troubles have deepened, marking a significant downturn from its once-thriving status.
5. Matthew M. Williams and Nike Debut New Yoga Collection
Matthew M. Williams, in collaboration with Nike, introduces a new yoga collection that combines his New York and California influences with Nike’s innovative technology. This collection caters to the dynamic lifestyle of modern consumers, offering a range of athletic and leisure wear designed for both yoga practice and everyday life. The lineup includes light puffer jackets, fleece pants, full-zip hoodies, bras, leggings, jumpsuits, and “everyday-everywhere” hats, designed to support comfort and movement. Notably, the men’s collection features boxer briefs and versatile three-in-one shorts, tailored for both comfort and unrestricted movement. The MMW x Nike Yoga collection is set to launch on Nike’s webstore, showcasing a blend of style and functionality suited for the versatile needs of today’s yoga enthusiasts.
6. Acne Studios Launches First Fragrance with Frederic Malle
Acne Studios has entered the world of perfumery with its first-ever fragrance, created in partnership with the esteemed Frederic Malle, known for luxurious scents like “Musc Ravageur” and “Portrait of a Lady”. This unisex fragrance, named “Acne Studios par Frederic Malle” and designed by Suzy le Helley, aims to capture the essence of freshness, open fields, and a touch of sweetness, featuring a sophisticated blend of pink aldehydes, violet, orange flowers, vanilla, peach, sandalwood, incense, and musk. Set to make its debut on April 17 in Acne Studios and Frederic Malle boutiques across Europe, this perfume combines Acne’s clean design ethos with Malle’s olfactory expertise, offering 50ml and 100ml bottles priced at $295 and $470 respectively.
