Inditex Q1 loss, Net-a-Porter profits treble, Bulgari issues bond, China may escape, Ferraris to Versace

Zara S/S 09 ad campaign, courtesy of Zara

Inditex 1Q Net Pft Down 16%; May Trading Resilient (WSJ) “Inditex SA (ITX.MC), Europe’s largest fashion retailer by revenue, Wednesday said its first quarter net profit fell 16 percent on a slump in consumer spending in Europe, but its stock rallied after it reported resilient clothing sales in May and the first week of June.” Net-a-Porter demonstrates strength of business model as profits treble (FT)

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CEO Talk | Greg Furman, Founder and Chairman, Luxury Marketing Council

Greg Furman

NEW YORK, United States — As the recession wears on, luxury companies are beginning to realise they will have to do more than cut costs in order to survive this downturn. Indeed, for many brands, a fundamental repositioning and reevaluation of their long-standing strategies may be in order. In this kind of environment, many luxury executives turn to the New York-based Luxury Marketing Council, where their membership enables them to

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Buyer for Hartmarx, Luxury market woes, Fashion graduates outlook, Luxury challenges, Tommy gains

Barack Obama wearing a Hartmarx suit

British firm offers stitch in time to save Barack Obama’s tailor (Guardian) “About 3,000 midwestern factory workers at Hartmarx are lobbying creditors to accept a $128m (£79m) buyout by a London-based private equity firm, Emerisque Brands.” Fire Sale: Once Towering, the Luxury Market Teeters (Time) “The typical luxury consumer has traded in high-priced fashion for quality, durable goods at a lower price,

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Friday Column | Japanese Luxury Fatigue

Prada flagship store in Omotesando, Tokyo

LONDON, United Kingdom — The scariest news I have recently read about luxury was in Tuesday’s Financial Times. The Japanese, it seems, have stopped buying luxury goods. Luxury imports in Japan were down 10 percent and sales of LVMH in the country were down 18 percent in the first quarter. And no, it’s not just the recession. “This is not a blip. This is a long-term shift in the market,” Brian Salsberg, the

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Aquascutum teetering, Lower profits for Zegna, Bergdorf and Neiman share talent, Luxury here to stay, Bastian buzz

Aquascutum S/S 09 ad campaign, courtesy of Aquascutum

Aquascutum puts entire workforce into consultation (Drapers) “Aquascutum has put its entire workforce into consultation, fueling speculation about the future of the luxury heritage brand.” Italy’s Zegna sees lower profits in 2009 (Reuters) “Italian luxury men’s suits maker Gruppo Ermenegildo Zegna forecast lower profits this year after a 20 percent drop in net profit excluding an extraordinary item for

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The Barbie dream, Brands look East, Luxury demand in India, Insurers harm recovery, Deflation fears increase

Chinese kids sold 'Barbie dream' (BBC) "Mattel, the world's largest toymaker, opened the world's first Barbie store in Shanghai in March of this year, offering patrons a chance to live and embrace the Barbie lifestyle in its entirety." (See video here) Luxury brands look to China amid global crisis (Forbes) "China's 6 billion euro ($8 billion) luxury market accounts for just 3 percent of global sales, but China and Brazil are projected to be the two fastest-growing luxury markets for the five years through 2012, according to consulting firm Bain & Co." Recession: No let-up in demand for designer wear (The Economic Times) "Those who are rich in the true sense have enough reserves to maintain their lifestyle. They are…

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Resilient Hermès, Analysts predict 2010 recovery, Most powerful luxury brands, Fashion’s blue book"

Hermès Q1 sales get lift from bags, currencies (Reuters) “Hermès proved again it was resisting the crisis better than many of its rivals with a 3.2 percent rise in first-quarter sales, helped by exchange rates and resilient demand for its handbags.” Have a look at this video from the CBC’s Fashion File to see the underlying craftsmanship that has served the brand well during the downturn. Financial Analysts

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Stars dazzle at Met Gala, The demise of full-price, Designers and execs look beyond the recession, Fashion goes West

Jessica Biel at the Costume Institute Gala, courtesy of The New York Times

A Museum Gala Where High Cheekbones and Higher Hemlines Rule (NYT) “It was noticeable change of social scenery, on Monday night, to see a fashion model (not, say, a routine celebrity) as the center of attention at the annual Costume Institute gala, generally considered the most glamorous, anticipated and expensive (with dinner seats starting at $7,500) event of the year.” Buyer’s Market:Will seasoned shoppers ever pay

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Valentino’s uncertain optimism, Shrinking luxury market, Retail leadership, UK retail jobs at risk

Bulgari 'Save The Children' ring, courtesy of Bulgari

The Fashion Forecast ( “Valentino Fashion Group’s operating profits fell seven per cent in 2008. But, despite a difficult year, the group – which owns Valentino, Hugo Boss and operates under license Marlboro Classics and M Missoni – intends to remain positive about its growth and future prospects.” Luxury Goods to Drop as Much as 20% in First Half of 2009 (Market Watch) “The luxury

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India has long-term potential, Retail investors gauge, Berlin launches bonds, ABS launches lingerie

The Indian luxury dilemma, courtesy of BrandRepublic

India: Potential for luxury, but not yet (AFP) “Purveyors of luxury goods are waking up from their dream of conquering India as the last great frontier for their high-end and high-priced wares.” Sixty UK rescued via CVA (Drapers) “Sixty UK, which trades the Miss Sixty and Energie stores and brands in the UK, has been rescued from administration via a Company Voluntary Agreement (CVA).” Retail Sales Data to

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BoF Dail Digest | OECD warns, Retailers hit, London prepares, Luxury shrinks

OECD Forum, courtesy of AFP

OECD predicts 10% jobless rate for 2010 (FT) “The OECD expects advanced economies to contract by 4.3 per cent in 2009 with little or no growth expected in 2010″ US Retail Stocks Lower Despite Slight Consumer Confidence Rise (WSJ) “Retailers were hit despite data that consumer confidence ticked up in March from a record low in February.” London City retailers prepare for protests (Drapers) “Fashion

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London Fashion Week | Missing shoppers, bad bears, and good frocks

Four Bad Bears, courtesy of

LONDON, United Kingdom — Last night, at a cocktail party to celebrate the opening of the Azzaro pop-up store on London’s Mount Street, I bumped into Robert Bensoussan, the highly-regarded former CEO of Jimmy Choo. The place was rammed with guests. Economic armageddon was nowhere in sight. But, more often than not, came up talk of the economy. Bensoussan told me he had been in New York visiting stores and had never seen so

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