Abercrombie & Fitch ad campaign, courtesy of Abercrombie & Fitch

Abercrombie & Fitch shares drop sharply (AP)
“Shares of Abercrombie & Fitch Co. tumbled Thursday after the teen retailer posted a bigger-then-expected drop in same-store sales for May. Its stock shed $3.56, or 11.3 percent, to $28.12 in midday trading.”

Across Low and High Ends, Retail Sales Fell in May (New York Times)
“While there have been early signs of stabilization, including improving consumer confidence, concerns over unemployment and the troubled housing market have led many Americans to adopt thriftier behavior, spending on food and other everyday essentials and not much else.”

Offers for Safilo due on Friday – sources (Reuters)
One or more private equity funds will present offers for Italian eyewear maker Safilo SpA on Friday, two sources close to the matter said.

Chief Executive of Versace Is Expected to Resign Friday (New York Times)
“Giancarlo di Risio, chief executive of Gianni Versace since 2004, is expected to resign at a board meeting on Friday in Milan.”

Burberry S/S 09 ad campaign, courtesy of Burberry

Burberry Prorsum to show at London Fashion Week (Catwalkingqueen)
“Christopher Bailey will bring the label’s 2010 spring collection to town to celebrate the 25th anniversary of LFW and the British Fashion Council. This will be followed by a special event hosted at Burberry’s brand spanking new headquarters.”

M&A passes luxury brands by (FT)
“The downturn in the luxury goods industry is the worst in 20 years, according to Johann Rupert, chairman and member of the founding family of Richemont. Conventional wisdom would have it that conditions are thus ripe for a wave of consolidation in the still-fragmented industry. But analysts caution the catalysts for consolidation are not yet in place.”

Versace Said Likely to Fire CEO Today After Conflict (Bloomberg)
The Versace saga continued to play out over the weekend in Milan.  “Gianni Versace SpA’s board meets tonight and will decide the fate of Chief Executive Officer Giancarlo Di Risio, who may be fired after tensions flared over creative control with Donatella Versace, exacerbating disputes over cost cuts, three people familiar with the situation said.”

Aquascutum Group May Be Acquired by Hong Kong’s YGM (Bloomberg)
“Aquascutum Group Plc, the 158-year- old label favored by British royalty and actor Pierce Brosnan, may be sold to the Hong Kong clothier that distributes the label in China and Southeast Asia. Japan’s Renown Inc., which bought the British label in 1990 for about 20 billion yen ($211 million), today named Hong Kong- based YGM Trading Ltd. as the preferred bidder for the unit.”

Donatella Versace and Giancarlo Di Risio, courtesy of the Wall Street Journal

Bucked by Designer, Versace CEO Eyes Exit (WSJ)
“Gianni Versace SpA Chief Executive Giancarlo Di Risio is expected to resign, a person familiar with the matter said, after months of clashes with lead designer Donatella Versace over how to cut costs at the Italian fashion house.”

Lanvin Posts Profit, Sales Gain 29 Percent (WWD)
“Lanvin, fueled by the creativity of Alber Elbaz, can face the economic crisis “in a healthy way,” said executive vice president Thierry Andretta.” (Subscription required)

Business Journals to relaunch Portfolio.com (BizJournals.com)
“Portfolio.com will migrate to a new home as part of Charlotte-based American City Business Journals Inc.’s bizjournals, effective in July.”

Management rejig at New Look + video of first TV ad (Drapers)
“New Look has promoted Will Kernan to group managing director (owned stores), overseeing its entire network of company-owned stores.” (click here to view the ad)

Hermès A/W 08 advertising campaign

Luxury’s Breaking Point (CNBC European Business)
“MasterCard SpendingPulse reported luxury goods was the worst hit category in the final two months of 2008, with year-on year sales nosediving 34% between 1 November and 24 December in the US.” 

Versace Profits Fall 30 Percent (WWD)
Versace feels the effects of the downturn with a 30 percent decrease in net profits. (Subscription required)

Bill Blass is Hiring (Fashionista)
“Peacock International Holdings LLC, the company that bought the Bill Blass Ltd name at the end of last year, is officially looking for a creative director to bring the brand back to the runway.”

US fashionistas go wild as Topshop gets set to open in Manhattan (The Observer)
“Philip Green lays on supermodels, socialites and swanky dinners to celebrate the belated arrival of a UK high street favourite”

Richemont Said to Hire Wikstrom to Revive Chloe (Bloomberg)
Martha Wikstrom will head up a new unit at Richemont dedicated to creating stronger competition.

Every 6 months during the fashion weeks held in New York, London, Milan and Paris, fashionistas grab the International Herald Tribune each morning and skip straight to the Style section to see what Suzy Menkes has said about the collections. It’s a running joke that fashion people buy the IHT, read Suzy’s reviews, and throw the rest of the newspaper out. This does not speak to the poor quality of journalism in the IHT, but rather to the high level of respect accorded to Ms. Menkes. Quite simply, there is no other fashion critic like her.

This week, Suzy is hosting the annual IHT luxury conference in Moscow, with keynote speakers like Bernard Arnault, Tom Ford and Yves Carcelle of Louis Vuitton. It’s a blockbuster event and I am very sorry to be missing it. But luckily, the IHT has created an online home for Supreme Luxury with detailed coverage of all of the ongoings, including this video interview between Suzy Menkes and Donatella Versace, who discusses the role of fabrics and minimalism in her new luxury, the role of celebrity in fashion, and the impact of professional management on the Versace business.