Fashion Market Update: Dior, LVMH, and Ferragamo: Which Brands are Rising, Falling, and at Risk?

LVMH’s recent financial report, Ferragamo’s struggles, and Kim Jones’ departure from Dior Men have been making headlines in the fashion industry this week.

LVMH’s fourth-quarter revenues remained unchanged at €23.9 billion compared to the previous year. However, there was a promising 1% organic growth increase, a welcome improvement from the 3% decline in the third quarter. Despite a decline in its fashion and leather goods division, LVMH is looking forward to a positive 2025.

The full-year revenue for LVMH was reported at €84.7 billion, showing a 1.7% decrease year over year, with fashion and leather goods experiencing a 3% decline. On the bright side, watches and jewelry as well as selective retail saw growth of 3% and 7%, respectively, in line with Richemont’s unexpected 10% surge in the fourth quarter.

Ferragamo, another luxury brand run by a family, faced challenges in the Asia-Pacific region. The brand’s revenue for the full year dropped by 10.5% to €1.04 billion, mainly due to a 19.7% decline in Asia-Pacific sales and a 21.2% decrease in wholesale. However, markets in the U.S., Japan, Europe, and Latin America remained resilient and showed positive performance.

As the couture and men’s fashion weeks come to an end, attention now turns to New York Fashion Week, starting a week earlier than usual. New York Fashion Week has historically struggled with consistent designer participation compared to its European counterparts, often losing talents to Paris for a broader global audience.

The upcoming Calvin Klein debut at NYFW is highly anticipated, marking a significant moment for PVH. The brand is focusing on its core brands, Calvin Klein and Tommy Hilfiger, while aiming to restore Calvin Klein’s fashion reputation. Achieving a balance between high design and commercial success is crucial for Calvin Klein’s future success.

The departure of Kim Jones from Dior Men has sparked rumors about Jonathan Anderson potentially moving from Loewe to Dior. There is speculation surrounding Maria Grazia Chiuri’s upcoming show at Paris Women’s Fashion Week for any signs of change in the brand.

Burberry’s recent success can be attributed to its emphasis on outerwear, a key category for the brand, and a less severe slowdown in China. However, holiday price reductions also contributed to boosting sales. Executives acknowledge that the luxury sector still faces challenges that need to be addressed.

In conclusion, the fashion industry is experiencing notable developments and changes, from financial reports to designer movements, signaling a dynamic and evolving landscape in the world of high fashion.