Milan Fashion Week kicked off on Tuesday, but the vibrant runway shows may struggle to divert attention from the significant challenges facing the luxury sector.
Over the next six days, Milan will showcase Autumn/Winter 2025-2026 collections for women, all while navigating the economic pressures that are dampening sales in the industry. The glamorous event, set to conclude on Sunday, arrives at a tough time for Italian fashion, with reports indicating a 5% drop in sales last year.
Italy’s downturn is part of a global trend affecting luxury brands, driven by weaker demand in China, reduced consumer interest in high-end goods, and ongoing economic uncertainty.
Gucci, once a star of Milan Fashion Week but now the worst performer in Kering’s portfolio, opened the show. The French luxury group announced earlier this month a staggering 23% decline in Gucci’s sales, which account for nearly half of Kering’s overall revenue. Despite efforts to turn things around, the brand’s sales have yet to recover.
Just two weeks before the show, Gucci also revealed that its creative director, Sabato de Sarno, would be leaving after just two years in the role.
Francesca Bellettini, Kering’s deputy CEO, responded by emphasizing that a brand’s identity is not tied to one person. “A brand is not a person, a brand is a story, and it is the people who work there at all levels. That’s what we saw today,” Bellettini told AFP.
In the absence of a traditional designer’s presence, Gucci’s creative studio presented a collection titled “Continuum.” The collection featured a blend of classic and modern styles, drawing on Gucci’s history with silhouettes from the 1960s and minimalist designs from the 1990s. Fabrics ranged from traditional to avant-garde, and the color palette included green, gray, mauve, and brown. Instead of the usual designer’s bow, members of the creative studio appeared on stage to acknowledge the audience.
Francois-Henri Pinault, Kering’s CEO, sought to reassure investors, telling analysts that the company was implementing strategies to “strengthen the health and desirability of our brands for the long term.” He added, “Gucci will come back. I have absolutely no doubt.”
Kering, which also owns Saint Laurent and Bottega Veneta, reported a 62% drop in net profit last year, falling to 1.13 billion euros ($1.18 billion).
According to consultants Bain & Company, only one-third of global luxury brands saw growth in 2024. Bain’s January report highlighted that global luxury consumers, facing economic uncertainty and rising prices, have been cutting back on non-essential purchases.
In Italy, the fashion sector, which includes eyewear, jewelry, and beauty, is projected to generate just under 96 billion euros in 2024—down 5.3% from 2023, according to the Italian Fashion Chamber’s forecast.
Carlo Capasa, the president of the Italian Fashion Chamber, said earlier this month that Milan Fashion Week represents the sector’s determination to confront its current challenges. “Creativity, pragmatism, and flexibility” will be key to navigating these tough times, he said, emphasizing the need for innovation and a strengthened Italian supply chain. Capasa also mentioned that the chamber would push the government for supportive policies.
The Italian leather and footwear sector is facing even greater difficulties, with a predicted 8.1% drop in revenue this year, according to the trade association Confindustria. In Tuscany, the heart of Italy’s leather industry, nearly 100,000 people are estimated to be on furlough.
Despite these setbacks, the Italian government has allocated about 110 million euros to support the fashion industry in 2023 and 2024. However, this financial aid hasn’t been enough to prevent some factories from nearing closure. Swiss brand Bally, whose runway show is scheduled for Saturday, announced in December that it would close its production facility near Florence, laying off 55 workers.
Several brands are celebrating major milestones during Milan Fashion Week, including Fendi, which marks its 100th anniversary with a co-ed runway show under the temporary creative direction of Silvia Venturini Fendi.
DSquared is also celebrating its 30th anniversary, while Kway marks 60 years since its founding in Paris in 1965. Other iconic names on the schedule include Prada, Giorgio Armani, Versace, Max Mara, Ferragamo, and Dolce & Gabbana.
However, Bottega Veneta will be absent, having postponed its first show under new artistic director Louise Trotter until September, after the departure of former director Matthieu Blazy to Chanel in December.
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