HERZOGENAURACH, Germany — Adidas AG cut its forecasts for 2013 because of “lackluster” sales in Europe and unfavorable currency impacts after reporting second-quarter profit that trailed analysts’ estimates.
PORTLAND, United States — Not long ago, Nike Inc. could simply open stores in China and wait for newly minted middle-class shoppers to show up. No longer. Though it has been in China for 30 years, the world’s largest sporting-goods maker is losing customers to Adidas AG’s more fashionable street wear and Hennes & Mauritz AB’s H&M cheap, hip clothing.
BoF distills recent fashion stories from the French media.
DENVER, United States — Adidas plans to start selling a full line of snowboard apparel and boots this fall. The question is whether the brand best known for its basketball, running and soccer gear can be accepted in the world of snowboarding.
HERZOGENAURACH, Germany — Adidas AG, the world’s second-largest sporting-goods maker, reported first-quarter profit that beat analysts’ estimates and said its gross margin widened to a record on higher prices and more sales from its own stores.
Guest contributor Rachel Arthur recaps the highlights of this year’s SXSW Interactive conference and identifies key takeaways for the fashion industry.
HERZOGENAURACH, Germany — Adidas is to stick with its troubled Reebok business even though the German sportswear group had to make a 265 million euro ($344.5 million) write-down on the brand at the end of last year. Adidas, which bought Reebok in 2005 for $3.8 billion to try to close the gap with market leader Nike, last year had to cut its 2015 sales target for the brand by a third after two quarters of declining sales. But the
Wings of desire: 175 years of Hermès (Telegraph) “Fast-forward to now, and Hermès is the world’s best-regarded luxury company. The regard is reflected in its performance: last year, its profits rose 41 per cent to £495 million. Its exquisitely printed silk scarves are lusted after, but the cult of Hermès is predicated primarily on its handbags.” Slowdown in China? Not for luxury brands (CNN) “China’s
Why Was the Designer Raf Simons Dismissed? (NY Times) “You don’t find many galvanizing examples of talent in other creative fields — and it’s hard to imagine an executive taking time on his day off to look at someone else’s runway show. But that’s how talented Mr. Simons is.” Sex in the Saddle (IHT) “What is it about women and horses? A trend toward a coltish look — short, taut jackets, curving jodhpur pants and
Can China Produce A Luxury Brand? (Forbes) “China is more known as a luxury consumer rather than a producer. And while it is a manufacturing hub for many global labels and retailers, it has yet to produce its own luxury brand in the manner of Hermes or Louis Vuitton. True, it took centuries for Hermes and Louis Vuitton to become what they are today, but these questions begged to be asked: Are there Chinese labels that are
Online shopping is growing rapidly in China (BBC News) “Across China, online companies large and small are learning how to be effective e-commerce players – or fail like US goliath eBay, which was trounced by upstart Taobao back in 2006. In 2010, China’s online shopping industry had a turnover of $80bn, and grew 87% year-on-year. China’s 420 million internet users spend around a billion hours each day online
Dowdy Department Stores Start Looking Cool Again (WSJ) “The sector, long derided for dowdy merchandise, maze-like stores and crumbling facades, is making a comeback. Macy’s Inc., Nordstrom Inc. and Kohl’s Corp. are posting solid sales gains even as consumers remain cautious and manufacturing costs rise—and they are poised to continue the streak this fall.” Lagerfeld for the Masses, Again (On the Runway) “Macy’s unveiled its
The Bay's Bonnie Brooks' lifelong ‘quest to be the best’ (Globe and Mail) "Ms. Brooks is used to thinking big. [At Lane Crawford], she used some of the same tactics that she’s applying at the Bay to turn it around: introducing an array of with-it brands, ditching old ones and putting a spotlight on high-margin shoes and handbags." How luxury brands can tap the blogosphere’s growing influence (Luxury Daily) "Consumers trust blogs more compared to traditional media than they did five years ago. Brands should actively look for ways to generate positive press by developing relationships with prominent industry bloggers." Hermès needs to style media defense to unsaddle LVMH (Reuters) "Winning the media war against luxury giant LVMH which began…