Italy moves to safeguard fashion sector reputation following labour scandals
Cashmere company Loro Piana, controlled by French luxury group LVMH, was put under judicial administration last week after prosecutors uncovered evidence of worker abuses in its supply chain.
The label was the fifth high-end brand to undergo such court monitoring in Italy since early 2024.
"We cannot allow the illicit behaviour of a few to compromise the reputation of the entire sector, penalising many virtuous companies and, consequently, our Made in Italy brand, which is a symbol of excellence and quality," minister Adolfo Urso told fashion trade bodies during a meeting, according to a source.
The ministry is working on a measure to certify the sustainability and legality of companies in the supply chain in advance, he added, so that brands do not have to answer for the conduct of their suppliers or subcontractors.
Units of fashion brands Valentino, Dior, Armani and Italian handbag company Alviero Martini were previously placed under administration in Italy for similar alleged worker exploitation.
In the case of Loro Piana, the Court of Milan found it "culpably failed" to adequately oversee its suppliers in order to pursue higher profits, according to the ruling.
Prosecutors in that case said the violation of rules among fashion companies in Italy was "a generalised and consolidated manufacturing method". Italy is home to thousands of small manufacturers that make up 50%-55% of global luxury goods production, consultancy Bain has calculated.
Italian legal and political authorities, fashion industry bodies and trade unions signed an action plan in May to fight worker exploitation in the apparel and accessories supply chain, after prosecutors uncovered widespread abuse.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
an hour ago
- Fashion Network
Geox posts 4.7% revenue drop in H1 2025 as market conditions remain challenging
Italian footwear and lifestyle brand Geox began 2025 on a softer note, reporting first-half revenues of €305.3 million ($351.1 million), a 4.7% decline compared to the same period last year. Excluding the impact of store closures in the United States and China, the drop narrowed to 1.9%. Despite the revenue dip, the company posted improved profitability, with EBITDA reaching €34.2 million ($39.3 million), reflecting an 11.2% margin on sales—up from €29.1 million ($33.5 million) in the first half of 2024. 'The first half of fiscal year 2025 continues to be impacted by difficult macroeconomic conditions,' Geox said in a statement. 'Consumer spending remains weak, shaped by low confidence and a significant drop in demand. Despite this, we are staying focused on our Business Plan priorities—targeting more profitable markets, streamlining operations, and managing costs.' The company noted that these strategies are already improving operating margins and reinforcing confidence in its long-term plan. The Spring/Summer 2026 sales campaign began in May and will run through September. Initial customer response has been positive, with the company citing strong interest in the updated style and commercial positioning of the collection. Geox also confirmed that it successfully completed the first phase of a €30 million ($34.5 million) capital increase outlined in its Financial Maneuver, with full shareholder participation. 'This result motivates us and confirms the path of revitalization we are pursuing,' the company said. Revenue from wholesale channels totaled €100.6 million ($115.7 million), down 5.6%, while retail sales declined 2.1% to €124.1 million ($142.7 million). The company highlighted that several store closures took place during the period, but on a like-for-like basis, sales from its directly operated monobrand stores saw a slight increase. Digital sales—including the Geox-owned e-commerce platform and marketplace operations—dropped 7.4% versus the first half of 2024. Geographically, Italy grew 1.6% to €90.5 million ($104.1 million), supported by a 43.8% increase in online sales and stable retail performance (+0.2%). Sales in Europe slipped 1.1% to €144.7 million ($166.4 million), mainly due to weaker results in the DACH region and the Iberian Peninsula. Revenues from "Other Countries" reached €70.1 million ($80.6 million), a 17.5% decrease attributed largely to the absence of sales from the U.S. and China, which contributed approximately €9 million ($10.3 million) in H1 2024. The region was also impacted by ongoing challenges in Russia and nearby markets, although growth in Canada (+14.5%) and the Middle East and Africa (+18.6%) helped offset the decline. In terms of product categories, footwear continued to dominate Geox's business, generating 91.9% of total revenue. Shoe sales reached €280.7 million ($323.8 million), down 3.8% year over year. Apparel sales dropped 13.6% to €24.6 million ($28.3 million).
Fashion Network
2 hours ago
- Fashion Network
Sam Lobban joins Thom Browne as CEO after leaving Nordstrom
, the American luxury label known for its sharp tailoring and owned by the Ermenegildo Zegna Group, is undergoing a leadership shift. The brand has appointed Sam Lobban as its new chief executive officer (CEO), recruiting him from Nordstrom, where he currently serves as executive vice president and general manager of the Apparel & Designer division. The British executive is set to join Thom Browne in early September, taking over from Rodrigo Bazan, who has held the role since 2016 and is stepping down 'to pursue new opportunities.' 'Sam Lobban is an innovator in merchandising and has notably secured collaborations at Nordstrom with major brands, including Thom Browne,' the Italian luxury group stated. Lobban began his career in 2010 at Selfridges in London, before joining the founding team of online fashion retailer Mr Porter a year and a half later. He remained there until 2018, then moved to Nordstrom in 2019, where he rapidly advanced through leadership roles. The Italian company thanks Rodrigo Bazan, recalling that under his leadership, 'the company reached sales of 315 million euros in 2023, with 116 directly operated stores worldwide, becoming a symbol of contemporary luxury made-to-measure.' "Under Rodrigo's leadership, Thom Browne's sales have almost tripled since our acquisition. We thank him for laying the foundation for our future growth," comments Gildo Zegna, CEO of the Zegna Group, which acquired the label in 2018. "Rodrigo's entrepreneurial vision, as well as his essential role in defending Thom Browne's intellectual property rights against Adidas, have helped protect and strengthen the brand's authentic and unique identity," he continues. While Thom Browne has enjoyed exponential growth in recent years, the brand had nevertheless begun to slow down, and this change of guard was to be expected. In 2023, the label saw its sales fall by 17.2% (-20.8% in organic terms), to 314.8 million euros, while its adjusted operating profit reached 27.3 million euros, with a margin of 8.7%, compared with 15.5% a year earlier.
Fashion Network
2 hours ago
- Fashion Network
Sam Lobban joins Thom Browne as CEO after leaving Nordstrom
, the American luxury label known for its sharp tailoring and owned by the Ermenegildo Zegna Group, is undergoing a leadership shift. The brand has appointed Sam Lobban as its new chief executive officer (CEO), recruiting him from Nordstrom, where he currently serves as executive vice president and general manager of the Apparel & Designer division. The British executive is set to join Thom Browne in early September, taking over from Rodrigo Bazan, who has held the role since 2016 and is stepping down 'to pursue new opportunities.' 'Sam Lobban is an innovator in merchandising and has notably secured collaborations at Nordstrom with major brands, including Thom Browne,' the Italian luxury group stated. Lobban began his career in 2010 at Selfridges in London, before joining the founding team of online fashion retailer Mr Porter a year and a half later. He remained there until 2018, then moved to Nordstrom in 2019, where he rapidly advanced through leadership roles. The Italian company thanks Rodrigo Bazan, recalling that under his leadership, 'the company reached sales of 315 million euros in 2023, with 116 directly operated stores worldwide, becoming a symbol of contemporary luxury made-to-measure.' "Under Rodrigo's leadership, Thom Browne's sales have almost tripled since our acquisition. We thank him for laying the foundation for our future growth," comments Gildo Zegna, CEO of the Zegna Group, which acquired the label in 2018. "Rodrigo's entrepreneurial vision, as well as his essential role in defending Thom Browne's intellectual property rights against Adidas, have helped protect and strengthen the brand's authentic and unique identity," he continues. While Thom Browne has enjoyed exponential growth in recent years, the brand had nevertheless begun to slow down, and this change of guard was to be expected. In 2023, the label saw its sales fall by 17.2% (-20.8% in organic terms), to 314.8 million euros, while its adjusted operating profit reached 27.3 million euros, with a margin of 8.7%, compared with 15.5% a year earlier.
