The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — French beauty group L'Oreal said on Thursday that Axel Dumas, the CEO of Birkin-bag maker Hermes, had resigned as a board member as the luxury group starts work on its own line of cosmetics.
L'Oreal said his departure was "due to the recent announcement by Hermes of the launch of a cosmetics line that may represent a possible conflict of interest."
Dumas confirmed in March that Hermes, which is principally known for its leather handbags but also already operates in perfumes, was due to branch into make-up by 2020, with skincare products due later.
It will do its own manufacturing rather than licence out production, leaning on suppliers in France and Italy.
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L'Oreal, which holds the cosmetics licences for fashion brands like Armani, said that investors present at its shareholder meeting on Thursday had approved the appointment of Fabienne Dulac, CEO of Orange France, to the board.
By Sarah White; Editor: Bate Felix
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.