RB fashion dispatch: Hermès faces a lawsuit, while Gucci faces a Q1 slump

Welcome to another week of fashion news you probably didn’t miss—but just in case you did, we got you.

This week, a prominent luxury retailer is at the center of a new lawsuit, and another luxury brand continues to slump despite efforts to turn things around.

Hermès faces a lawsuit

Have you ever tried purchasing a Birkin at Hermès? Yeah, neither have we, but you probably know it’s pretty hard, even if you’ve got the $$. Recently, two California women sued Hermès for allegedly violating antitrust law by tying the sales of the Birkin bag to “sufficient purchase history.”

“Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown a Birkin handbag (in a private room),” the lawsuit claims.

Why this matters: Social media is full of accounts of people complaining that salespeople won’t let them buy a Birkin. Hermès has denied the allegations.

The case will be interesting to watch, as other retailers have faced similar accusations. “Dealers of watchmaker Rolex have been accused of requiring shoppers to buy from sister brand Tudor before being allowed to buy Rolex products,” BoF reported.

Gucci sales slump

Kering’s shares took a hit after it reported that Gucci sales would likely fall 20% in Q1, resulting in a $7 billion drop in the company’s market value.

Why this matters: While luxury as a whole has suffered from rising costs, Kering has had a particularly hard time with declining sales at brands like YSL and Balenciaga. Last month, the luxury conglomerate reported a 6% drop in its Q4 revenue, while noting it was focused on “revitalizing” brands like Gucci.

Loro Piana in hot water

A US Representative is questioning LVMH-owned Italian luxury brand Loro Piana about its alleged “exploitation” of Indigenous workers in Peru, after a scathing report from Bloomberg.

Following the report, Congressman Robert Garcia (D-CA) sent a letter to the brand demanding answers by the end of April. The company responded by saying it has worked to preserve vicuñas—the animals the workers shear to provide wool for the brand’s pricey sweaters—for the last 30 years, and has invested in local communities.

Why this matters: Retailers around the world have come under fire in recent years for exploiting workers, including here in the US, where earlier this year the Department of Labor recovered $1.1 million in damages and back pay for factory workers in LA.