Milan (Italy) (AFP) – Flair and fanfare promise to light up the Milan Fashion Week catwalks starting Tuesday, but upcoming shows will struggle to distract from a worrying slump in the luxury sector. For six days, the northern Italian capital of fashion will showcase Autumn/Winter 2025-2026 women’s looks — while scrambling behind the scenes to react to macroeconomic headwinds cutting into sales. Milan’s glamorous showcase for the latest fashion trends, which ends Sunday, comes during a difficult moment for Italian fashion, with estimates showing sales having fallen by 5 percent last year.
Italy’s woes are part of a global slump in the sector, driven by weakness in the key market of China, reduced appetite for high-priced goods, and widespread economic uncertainty. Gucci — once the pride of fashion week but now the worst performer in Kering’s portfolio — kicks off the week-long party this week in Milan. The French group earlier this month announced a jaw-dropping 23 percent drop in sales at Gucci, its flagship brand accounting for almost half of the revenue of the group, whose sales have not recovered despite an announced turnaround. Just over two weeks before the show, Gucci announced the departure of its creative director, Sabato de Sarno — after just two years on the job.
Kering Chief Executive Francois-Henri Pinault tried to temper the fallout, telling analysts during its annual presentation this month that measures were being taken to “strengthen the health and desirability of our brands for the long term.” “Gucci will come back. I have absolutely no doubt,” Pinault said. The net profit of Kering — which also owns Saint Laurent and Bottega Veneta, the latter a bright spot in the portfolio — plunged 62 percent last year to 1.13 billion euros ($1.18 billion).
Cutting back, consultants Bain & Company have estimated that only about a third of the world’s luxury brands experienced growth in 2024. “Global luxury consumers, grappling with macroeconomic uncertainty and continued price elevation by brands, cut back slightly on discretionary items,” said Bain in a January report. In Italy, the fashion sector, including eyewear, jewellery, and beauty, is expected to post turnover of just under 96 billion euros in 2024, a drop of 5.3 percent compared to 2023, according to forecasts by Italian Fashion Chamber.
The body’s president, Carlo Capasa, said earlier this month that the week of shows, buying, and networking demonstrated the sector’s willingness “to address the complexity of the moment the sector is facing.” “Creativity, pragmatism, and flexibility,” will help the sector confront “such a challenging moment,” he told a press conference, with efforts needed to boost innovation and strengthen Italy’s supply chain. He said the chamber would lobby the government for “support policies” for the sector.
The Italian leather and footwear sector is faring worse than fashion, with estimates from trade association Confindustria showing an anticipated revenue drop of 8.1 percent in 2024. In Tuscany, the hub of Italy’s leather industry, nearly 100,000 people are estimated to be on furlough. The Italian government has put aside about 110 million euros to boost the fashion sector this year and last. But that hasn’t been able to pull some factories back from the brink of closure. Swiss brand Bally — whose runway show is scheduled for Saturday — announced in December it would shut its production facility near Florence which employs 55 workers. Negotiations with trade unions are ongoing to avert the closure.
Some brands are celebrating big anniversaries this year in Milan, notably Fendi’s 100th birthday with a co-ed catwalk show under the interim creative direction of Silvia Venturini Fendi. DSquared celebrates its 30th birthday while Kway celebrates 60 years since it was established in Paris in 1965. Also on the calendar are Milan stalwarts Prada, Giorgio Armani, Versace, Max Mara, Ferragamo, and Dolce & Gabbana. Bottega Veneta will be absent, having postponed its first show under new artistic director Louise Trotter to September, after previous director Matthieu Blazy left for Chanel in December.
© 2024 AFP
