Latest news with #fashionindustry
Yahoo
44 minutes ago
- Business
- Yahoo
Burberry pays new boss almost £2.6m in nine months while axing jobs
Burberry has paid its new chief executive, Joshua Schulman, almost £2.6m in his first nine months in the job, including £380,000 in house moving costs, as the ailing British brand announced hundreds of job cuts. The company also gave its former boss Jonathan Akeroyd a payoff worth about £1.5m – a year's notice including salary, pension and cash benefits – after he exited the company in July last year, according to the group's annual report. The former Versace boss left less than three years after he was appointed in 2021. This year Schulman could earn up to £5.6m if he meets bonus targets, excluding a £3.6m potential bonus if he doubles Burberry's share price in three years with the aim of re-entering the FTSE 100. He is also in line for a further £25,000 a month in 'housing allowance' for just over a year on top of £135,171 to help him find a new home, £120,655 towards transporting his effects from New York, where he previously lived, and five months of housing allowance already paid. In his first nine months, Schulman was given a £1.2m bonus on top of his £1.356m in fixed salary, which included the moving allowances. The chunky payments to senior directors come despite Burberry revealing plans to cut 1,700 jobs worldwide by 2027 – including removing the entire night shift of 170 people at its Yorkshire raincoat factory – in an effort to tackle sliding profits. The company disclosed the plan earlier this month when it revealed it had dived to an annual loss of £66m, from a profit of £383m a year before, as it struggled in a troubled global luxury goods industry after a series of strategic missteps. Schulman, the former boss of the US fashion brand Coach, was hired last year in an attempt to turn around Burberry's fortunes. The group's share price has risen almost 50% since he was appointed despite fears about the effect of Donald Trump's plans for import tariffs and the effect on US and Chinese consumer spending. This month Schulman announced a plan to cut about a fifth of Burberry's global workforce to bring £60m in additional cost savings on top of a £40m savings programme that he had announced in November. The annual report shows Burberry has already been reducing its workforce, with the number of employees down by more than 870 to 8,459 year on year. Burberry's directors said in the report that they had consulted shareholders about the level of Schulman's pay. 'The majority of shareholders appreciated the circumstances of Josh's recruitment and were supportive of the design of Josh's ongoing remuneration arrangements, the approach to his annual bonus for [the last year] and his recruitment award.' They said directors were 'mindful of the feedback received from some of our shareholders during the consultation and took this into account when determining the final level of bonus payout'. Andrew Speke, of the High Pay Centre thinktank, said: 'Given Burberry's financial struggles, it's not surprising they're taking cost-cutting measures. 'But to be cutting thousands of jobs while continuing to pay exorbitant amounts to executives is ethically highly questionable and seems like a big strategic error. 'It will cause major damage to the morale of the workforce and reflects yet another major company that appears to think that business success comes from paying the person at the top a lot of money rather than investing more equitably in the broader workforce.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
5 hours ago
- Business
- Forbes
The Quality Conundrum—Luxury Fashion Isn't What It Used To Be
A general exterior view of the Burberry luxury fashion label store in London, United Kingdom. (Photo by) Getty Images As the price of luxury goods continues to rise—a pattern which first emerged post-pandemic but persists due to the impending recession within the United States and the country's shifting tariff policies that affect the way goods are manufactured, shipped and sold—the cost of shopping lavishly has begun to surpass the level of quality consumers expect from their high-priced purchases. Desperate for answers and amendments from the brands they used to love, consumers are taking to social media to speak out against luxury giants as they continue to charge more for less and devalue their once loyal customers. Acting as the unofficial face for such distain is TikTok user Janet Lin. Known by social media users as @janetlinxo, the New York City-based content creator has garnered a slew of attention for her series of recently published videos—the most popular of which currently sitting at 3.4 million views—that detail the dramatic decline of her Goyard Saint Louis GM tote bag. The bag—constructed from the brand's signature brightly colored Goyardine canvas and available for a minimum price just shy of two thousand dollars—was documented by Lin as having fallen apart after being worn outside for a few hours in the heat. In one video, Lin dramatically holds her cobalt blue Goyard tote up to the camera and pulls the leather-bound top handles apart to reveal they've melted together. In another clip, Lin shows off the blue staining on her otherwise clean white T-shirt as a result of the bag's bleeding blue finish melting off in the same mild weather conditions. While some users unleashed their frustrations towards Lin in the form of lengthy rebuttals within the video's comment section—citing the usage instructions found on the brand's product page that advise the wearer to 'Avoid contact with water, greasy or oily products, make-up and perfumes' as well as 'Protect the item from damp, extended exposure to artificial, natural light or intense heat' as logical reasons for the bag's current state—many individuals were quick to come to her defense, agreeing that no item of that price point should become damaged to the point destruction after one wear in the sun. Goyard could not be reached for comment. Despite the videos published by Lin being some of the most popular pieces of content that depict unexplainable damage to designer goods, similar antidotes and visual testimonials are taking up space within the fashion content published online, with each gaining more traction than the last and acting as the catalyst for a larger conversation around the quality of luxury goods—with modern critiques emphasizing the inferiority of such goods in comparison to the high price points they are offered at to the consumer and calling for the boycott of affected brands. While currently newsworthy, this pattern of luxury decline is not new. In an article published in late November of 2024, Forbes cited the Fall 2024 Bain-Altagamma Luxury Goods World Wide Market Study to illustrate the surprising drop in sales within the luxury goods sector, saying, 'For the first time since 2008, excluding the 2020 Covid-19 year, the personal luxury goods market declined, dropping 2% from an historic high of $387 billion (€369 billion) in 2023 to $381 billion (€363 billion) at current exchange rates.' In addition to referencing the study, Forbes included a number of casual effects that impacted the luxury goods market to the point of decline, the most notable of which—especially as it relates to the example illustrated above—was the misalignment of price and value. Similar to Lin's frustration over her pricey Goyard bag depreciating in value as soon as she began to use it, many consumers are frustrated with the luxury market's consistently growing prices for products that stay stagnant in quality. However, despite these challenges, the same market study offered a simple solution for luxury brands to revitalize their businesses and recapture the attention of consumers: get back to basics. 'To secure future growth, brands will need to rethink their luxury equations, re-establishing creativity and blending old and new playbooks,' the study stated. 'This includes rediscovering their essence and embracing the foundational pillars of the industry: desirability fueled by craftsmanship, creativity and distinctive brand values; meaningful, personalized and culturally-resonant customer connections and experiences.' In short, as rising prices for once accessible luxury goods continues as an inevitability, brands not only have the opportunity to secure their customer base with the obvious usage of high quality materials, but with the amplified infusion of heritage, identity and singularity. In this new era of consumerism that amplifies the cost of all goods, shoppers are looking for luxury built off of more than just high prices—leaving it up to brands to demonstrate their value.
Yahoo
6 hours ago
- Business
- Yahoo
Adidas ‘does not own all stripes,' Steve Madden says in lawsuit
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Steve Madden is suing Adidas for allegedly using anticompetitive efforts to monopolize 'common design features' in the fashion industry, namely stripes. In court documents filed last week, Steve Madden asked the court to confirm that two of its sneaker designs, the Viento and Janos, don't infringe on Adidas' trademarks. Both are low-top, lace-up sneakers that feature two nonparallel stripes. Attorneys for Steve Madden said the company is 'tired of being targeted by Adidas' regarding footwear that bears 'no resemblance' to Adidas' trademarked three stripe design, and further argued that no customer is likely to believe the sneakers are associated with Adidas. Adidas has federal trademark protection on a three parallel stripe design in specific locations on certain items of clothing and shoes. Attorneys for Steve Madden said Adidas has complained about the designs on Steve Madden's Viento and Janos sneakers, which include a 'divergent band' design and a 'K' design, respectively. Adidas filed a request in April to extend its time to oppose Steve Madden's trademark application for the K design, and its lawyers reached out to Steve Madden about concerns over the divergent band design, per the complaint. Variations of two bands on footwear are common in the fashion industry, Steve Madden said in the complaint, which also includes images of several sneakers with two-band designs from labels including Converse, Veja, Tommy Hilfiger and Bally. 'Simply put, Adidas does not own all stripes and should not be allowed to claim that it has a monopoly on all footwear that includes stripes, bars, bands or any shape having four sides — parallel, straight or not,' attorneys for Steve Madden said in the complaint. Adidas has sued Steve Madden over stripes before. In 2002, the Germany-based company filed one complaint over a four parallel stripe design and another one over a two parallel stripe design, per the complaint. The two lawsuits were combined, and both parties reached a settlement in 2003. Steve Madden is seeking a jury trial in the latest complaint, which was filed in the U.S. District Court for the Eastern District of New York. The footwear brand also is asking for a declaratory judgment of non-infringement and ruling that states no unfair competition between the companies. An Adidas spokesperson declined to comment. Steve Madden isn't the only brand that Adidas has targeted with litigation over its three stripe design. Adidas sued Thom Browne in yearslong litigation over the use of stripes both in the U.S. and the U.K. Ultimately, judges ruled in favor of Thom Browne in both instances. Recommended Reading 5 fashion lawsuits and legal trends to watch in 2025
The Guardian
a day ago
- Business
- The Guardian
Burberry pays new boss almost £2.6m in his first nine months while cutting workforce
Burberry has paid its new boss Joshua Schulman almost £2.6m in his first nine months in the job, including £380,000 in house moving costs, as the ailing British brand announced hundreds of job cuts. The company also handed former boss Jonathan Akeroyd a pay-off worth about £1.5m – a year's notice including salary, pension and cash benefits – after he exited the company in July last year, according to the group's annual report. The former Versace boss exited less than three years after he was appointed in 2021. This year Schulman could earn up to £5.6m if he meets bonus targets, excluding a £3.6m potential bonus if he doubles Burberry's share price with the aim of re-entering the FTSE 100. He is also in line for a further £25,000 a month in 'housing allowance' for just over a year on top of £135,171 to help him find a new home, £120,655 towards transporting his effects from New York, where he previously lived, and five months of housing allowance already paid. In his first nine months, Schulman was handed a £1.2m bonus on top of his £1.356m in fixed salary which included the moving allowances. The chunky payments to senior directors come despite Burberry announcing plans to slash 1,700 jobs worldwide by 2027 – including removing the entire night shift of 170 people at its Yorkshire raincoat factory – in a bid to tackle sliding profits. The company announced the plan earlier this month as it revealed it had dived to an annual loss of £66m, from a profit of £383m a year before, as it struggled in a troubled global luxury goods industry after a series of strategic missteps. Schulman, the former boss of the US fashion brand Coach, was hired as chief executive last year in an attempt to turn around Burberry's fortunes. The group's share price has risen almost 50% since he was appointed despite fears about the effect of Donald Trump's plans for import tariffs and the effect on both US and Chinese consumer spending. Earlier this month Schulman announced a plan to cut about a fifth of Burberry's global workforce to bring £60m in additional cost savings on top of a £40m savings programme that he had unveiled in November. The annual report shows Burberry has already been reducing its workforce with the number of employees down by more than 870 to 8,459 year-on-year. Burberry's directors said in the report that they had consulted with shareholders about the level of Schulman's pay. 'The majority of shareholders appreciated the circumstances of Josh's recruitment and were supportive of the design of Josh's ongoing remuneration arrangements, the approach to his annual bonus for [the last year] and his recruitment award.' They said directors were 'mindful of the feedback received from some of our shareholders during the consultation and took this into account when determining the final level of bonus payout'.
Vogue
2 days ago
- Business
- Vogue
Khaite Resort 2026 Collection
Congratulations are in order for Cate Holstein, whose second baby, a girl, arrived the day before she was scheduled to present this resort collection. Chalk it up to the optimism and happiness a new birth brings, or simply to ongoing success—Holstein is on the verge of opening another new store, this one on Melrose Place in Los Angeles—but this was her most playful Khaite collection yet, styled with irreverence and exuding a freer spirit. The 'stealth woman' that she designs has a sunnier new disposition. The shift in attitude came across clearest in the way zebra-stripe pony skin mingled with sheer florals, and in the electric turquoise hue of ostrich cowboy boots and strappy evening sandals. The roomy cut of shirt-dresses in both solids and floral prints also conveyed a more laid-back sensibility. But if the vibes are different, these clothes are as deluxe as ever—the plongé leather of coats begging to be caressed and the equally pet-able pony skin of pants. The printed rabbit jackets she added to the mix are a sign of customers' changing attitudes about real fur, which had previously gone out of fashion. The all-important coat or jacket, the one piece that women are willing to spend money on because it does so much of a wardbrobe's hard work, both elementally and aesthetically, was an obvious focal point here. Holstein experimented with novel shapes, cutting jackets longer in front and at the natural waist in back, or adding side plackets to create sharp, dramatic silhouettes. In addition to plongé leather, she also used distressed leather, as on a bomber that reverses to shearling. Her tailoring is buttoned-up, quite literally in the case of double-breasted blazers and a single breasted leather jacket with chrome buttons from neck to hem. On the accessories front, there's a purple pony skin tote as vibrant as those turquoise boots. A PR rep pointed out that it would be great for weekend getaways, but you know what else it could look like? A rather eye-catching diaper bag.
