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Business of Fashion
a day ago
- Business
- Business of Fashion
Coach's Hit Handbag Shows How Less-Expensive Luxury Is Gaining Ground
Ultra-luxury is losing its luster — and mid-tier competitors are capitalizing. Industry bellwether LVMH Moët Hennessy Louis Vuitton SE, which reported weaker-than-expected sales in the latest quarter, was accused of selling a Dior bag that costs about $60 to make for $2,800. Meanwhile, Tapestry Inc.'s Coach is cashing in on cool with its $495 Tabby bag — a viral hit that costs a fraction of a similar shoulder bag from Dior or Chanel. That's just one example of how mid-tier luxury brands are weathering the current economic uncertainty better than their ultra-luxury and fast-fashion counterparts, as consumers seek quality and value without the sky-high prices amid a weaker global economy. 'There's a bit of a backlash going on,' said Fflur Roberts, head of luxury goods at Euromonitor International. Consumers are questioning the true value behind the price, including how items are made and the cost versus what they're really worth, she said. As wealthy consumers trade down, mid-tier brands are performing increasingly well. Tapestry, which also owns the Kate Spade and Stuart Weitzman brands, recently raised its forecast for the year after reporting quarterly results ahead of analyst estimates. Amer Sports Inc., which owns premium sportswear brands Salomon and Arc'teryx, also increased its projections for the full year, while Michael Kors owner Capri Holdings Ltd. and Hugo Boss AG both outperformed market expectations. Ralph Lauren Corp. is another winner, offering a broad price range and maintaining appeal through its classic design, according to Bloomberg Intelligence senior retail analyst Mary Ross Gilbert. Same-store sales rose 13 percent in the three months through March 29, nearly double what analysts expected. Meanwhile, luxury giants Hermès International SCA and Gucci owner Kering SA joined LVMH in disappointing investors in the most recent earnings season, while privately-held Chanel Ltd.'s profit plunged. On the other end of the spectrum, fast fashion also struggling. 'We've seen a more difficult environment,' said BI senior analyst Charles Allen. Higher Zara prices and fewer H&M promotions are deterring shoppers, he added. Zara owner Inditex SA, Hennes & Mauritz AB and Primark, owned by Associated British Foods Plc, all reported slower growth or missed targets, while JD Sports Fashion Plc's same-store sales fell 2 percent in the first quarter and are expected to drop again. Tariffs — a key reason for the luxury slowdown — leave retailers targeting value shoppers little wiggle room. Uniqlo owner Fast Retailing Co. already warned these could hurt future earnings, while H&M said it may raise prices to offset the impact, which could push shoppers further away. Still, some consumers may be returning to stores. Primark US sales grew in April — partly due to the Easter holiday shifting to the month — after shrinking the previous two months, according to observed sales data collected by Bloomberg. Meanwhile, US wages continued to grow in April, and the country is still at a full employment level with the unemployment rate at 4.2 percent. US spending in April, however, ground to a halt. 'If people have money and see something tempting, they'll spend,' Allen said. 'People don't always behave how they say they will.' By Rachel Phua Learn more: How Coach Used Data to Make Its Tabby Bag a Hit After the bag initially proved popular with Gen-Z consumers, the brand used a mix of hard numbers and qualitative data – including 'shopalongs' with young customers – to make the most of its accessory's viral moment.
Fashion Network
a day ago
- Business
- Fashion Network
Coach's hit handbag shows how less-expensive luxury is gaining ground
Ultra-luxury is losing its luster — and mid-tier competitors are capitalizing. Industry bellwether LVMH Moët Hennessy Louis Vuitton SE, which reported weaker-than-expected sales in the latest quarter, was accused of selling a Dior bag that costs about $60 to make for $2,800. Meanwhile, Tapestry Inc.'s Coach is cashing in on cool with its $495 Tabby bag — a viral hit that costs a fraction of a similar shoulder bag from Dior or Chanel. That's just one example of how mid-tier luxury brands are weathering the current economic uncertainty better than their ultra-luxury and fast-fashion counterparts, as consumers seek quality and value without the sky-high prices amid a weaker global economy. 'There's a bit of a backlash going on,' said Fflur Roberts, head of luxury goods at Euromonitor International. Consumers are questioning the true value behind the price, including how items are made and the cost versus what they're really worth, she said. As wealthy consumers trade down, mid-tier brands are performing increasingly well. Tapestry, which also owns the Kate Spade and Stuart Weitzman brands, recently raised its forecast for the year after reporting quarterly results ahead of analyst estimates. Amer Sports Inc., which owns premium sportswear brands Salomon and Arc'teryx, also increased its projections for the full year, while Michael Kors owner Capri Holdings Ltd. and Hugo Boss AG both outperformed market expectations. Ralph Lauren Corp. is another winner, offering a broad price range and maintaining appeal through its classic design, according to Bloomberg Intelligence senior retail analyst Mary Ross Gilbert. Same-store sales rose 13% in the three months through March 29, nearly double what analysts expected. Meanwhile, luxury giants Hermès International SCA and Gucci owner Kering SA joined LVMH in disappointing investors in the most recent earnings season, while privately-held Chanel Ltd.'s profit plunged. On the other end of the spectrum, fast fashion also struggling. 'We've seen a more difficult environment,' said BI senior analyst Charles Allen. Higher Zara prices and fewer H&M promotions are deterring shoppers, he added. Zara owner Inditex SA, Hennes & Mauritz AB and Primark, owned by Associated British Foods Plc, all reported slower growth or missed targets, while JD Sports Fashion Plc's same-store sales fell 2% in the first quarter and are expected to drop again. Tariffs — a key reason for the luxury slowdown — leave retailers targeting value shoppers little wiggle room. Uniqlo owner Fast Retailing Co. already warned these could hurt future earnings, while H&M said it may raise prices to offset the impact, which could push shoppers further away. Still, some consumers may be returning to stores. Primark US sales grew in April — partly due to the Easter holiday shifting to the month — after shrinking the previous two months, according to observed sales data collected by Bloomberg. Meanwhile, US wages continued to grow in April, and the country is still at a full employment level with the unemployment rate at 4.2%. US spending in April, however, ground to a halt. 'If people have money and see something tempting, they'll spend,' Allen said. 'People don't always behave how they say they will.'
Mint
2 days ago
- Business
- Mint
Coach's Hit Handbag Shows How Less-Expensive Luxury Is Gaining Ground
(Bloomberg) -- Ultra-luxury is losing its luster — and mid-tier competitors are capitalizing. Industry bellwether LVMH Moët Hennessy Louis Vuitton SE, which reported weaker-than-expected sales in the latest quarter, was accused of selling a Dior bag that costs about $60 to make for $2,800. Meanwhile, Tapestry Inc.'s Coach is cashing in on cool with its $495 Tabby bag — a viral hit that costs a fraction of a similar shoulder bag from Dior or Chanel. That's just one example of how mid-tier luxury brands are weathering the current economic uncertainty better than their ultra-luxury and fast-fashion counterparts, as consumers seek quality and value without the sky-high prices amid a weaker global economy. 'There's a bit of a backlash going on,' said Fflur Roberts, head of luxury goods at Euromonitor International. Consumers are questioning the true value behind the price, including how items are made and the cost versus what they're really worth, she said. As wealthy consumers trade down, mid-tier brands are performing increasingly well. Tapestry, which also owns the Kate Spade and Stuart Weitzman brands, recently raised its forecast for the year after reporting quarterly results ahead of analyst estimates. Amer Sports Inc., which owns premium sportswear brands Salomon and Arc'teryx, also increased its projections for the full year, while Michael Kors owner Capri Holdings Ltd. and Hugo Boss AG both outperformed market expectations. Ralph Lauren Corp. is another winner, offering a broad price range and maintaining appeal through its classic design, according to Bloomberg Intelligence senior retail analyst Mary Ross Gilbert. Same-store sales rose 13% in the three months through March 29, nearly double what analysts expected. Meanwhile, luxury giants Hermès International SCA and Gucci owner Kering SA joined LVMH in disappointing investors in the most recent earnings season, while privately-held Chanel Ltd.'s profit plunged. On the other end of the spectrum, fast fashion also struggling. 'We've seen a more difficult environment,' said BI senior analyst Charles Allen. Higher Zara prices and fewer H&M promotions are deterring shoppers, he added. Zara owner Inditex SA, Hennes & Mauritz AB and Primark, owned by Associated British Foods Plc, all reported slower growth or missed targets, while JD Sports Fashion Plc's same-store sales fell 2% in the first quarter and are expected to drop again. Tariffs — a key reason for the luxury slowdown — leave retailers targeting value shoppers little wiggle room. Uniqlo owner Fast Retailing Co. already warned these could hurt future earnings, while H&M said it may raise prices to offset the impact, which could push shoppers further away. Still, some consumers may be returning to stores. Primark US sales grew in April — partly due to the Easter holiday shifting to the month — after shrinking the previous two months, according to observed sales data collected by Bloomberg. Meanwhile, US wages continued to grow in April, and the country is still at a full employment level with the unemployment rate at 4.2%. US spending in April, however, ground to a halt. 'If people have money and see something tempting, they'll spend,' Allen said. 'People don't always behave how they say they will.' --With assistance from Jeannette Neumann. More stories like this are available on
Yahoo
2 days ago
- Business
- Yahoo
Deals from Amazon, REI, Apple and more are here this weekend
There are so many things to love about June, which makes its long-awaited entrance this weekend. Sun-dappled weddings, the NBA and NHL finals, the summer-commencing solstice, the kiddos being out of school and home with you all the time (OK, we'll admit to some ambivalence about that last one). But we are unabashedly salivating over this weekend's best deals, from Apple, Amazon, Hoka and more. Get ready for the campsite and the beach with a 24-lb-capacity Yeti cooler for $50 off, get your running regimen on the good foot with a $28 markdown on a pair of sturdy, supportive Hoka Clintons and, for a whole nother kind of stepping out, a ridonculous $189 discount on a chic pochette from Kate Spade Outlet. Intrigued? You oughtta be. Want to find out what other picks are poised to rock your shopping world? You know what to do... Amazon: We're seeing savings of up to 70% on everything from bedding and kitchenware to tech, clothing and beauty. Best Buy: Save up to 50% on appliances, as well as on TVs, laptops, headphones and tablets. Macy's: Spend up to $99, get an extra 20% off, $100-$199, get an extra 25% off and $200+, get an extra 30% off when you use code SAVE during the retailer's Buy More, Save More sale. Nordstrom: The Half-Yearly Sale is here! Save up to 60% on Hoka, Tory Burch, Barefoot Dreams and more. QVC: Tap the retailer's massive clearance section for savings on fashion, accessories, home essentials and more — plus, new customers get 20% off their first order with code 20NEWQ. REI: The retailer has a plethora of great offerings during its Anniversary Sale: Score up to 50% off clothing, footwear, REI Co-Op brand deals and hiking items. Target: You can always count on Target to bring the deals, including up to 60% off outdoor furniture and up to 40% off kitchen essentials, clothing and sandals.
Straits Times
4 days ago
- Lifestyle
- Straits Times
The not-so-sustainable reality of buying second-hand fashion
I pride myself on being a savvy second-hand shopper. A gently used vintage Jean Paul Gaultier blazer from a second-hand store in Taiwan; a silk Moschino scarf from a flea market in Tokyo; a novelty Kate Spade box clutch from a charity sale in Singapore – these are just a few of the treasures I have unearthed over the years at a fraction of their original prices. Join ST's Telegram channel and get the latest breaking news delivered to you.
