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This week in fashion news, one major designer has an unexpected debut, and a sportswear retailer looks into fraud allegations.
Alessandro Michele at Valentino
Alessandro Michele made his much-anticipated but unexpected debut at Valentino this week with a Resort 2025 collection. The surprising lineup came months before the designer’s actual anticipated Spring 2025 collection, due in September.
Why this matters: Michele gained prominence after joining Gucci in 2002, and eventually transformed the label as creative director. Under him, the brand became the most profitable of all the brands in Kering’s portfolio. He left Gucci in November 2022, and all eyes have been on him since he joined Valentino this April.
Adidas opens fraud probe
Adidas has opened up a fraud probe in China after receiving an anonymous letter that claimed some Adidas employees, including a senior manager, received kickbacks from suppliers. One employee allegedly received “millions of cash” and real estate, Bloomberg reported. The retailer has hired outside legal counsel to look into the letter.
Why this matters: Legal troubles seem to be plaguing several fashion brands lately. Just last week, a Dior subsidiary was placed under judicial administration for a year after being accused of hiring Chinese subcontractors linked to labor exploitation. Meanwhile, other brands including Zara and Armani have also undergone legal investigations into alleged labor abuses in China.
Swatch executive shifts
Things are moving fast at Swatch, at least on the executive level. Last week, the company announced that Peter Steiger, the chief controlling officer at the watch and jewelry brand, was leaving. Meanwhile, Damiano Casafina, CEO at ETA, and Sylvain Dolla, Tissot’s CEO, were appointed to the executive group management board, according to Swatch.
Why this matters: The executive moves follow a slowed demand for timepieces in China and Hong Kong that has impacted retailers including Swatch, whose shares reached a 52-week low earlier this month. And watches aren’t the only category struggling. All of luxury seems to have been impacted by a slowdown as inflation-hit consumers pull back on discretionary spending.