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This week in fashion news: One major fashion retailer is moving its show from Copenhagen to Paris, and Temu owner PDD sees a dramatic drop in its share price.
Ganni goes to Paris
Danish label Ganni is headed to Paris Fashion Week next month to present its Spring/Summer collection. It previously took part in Copenhagen Fashion Week, though it didn’t present during the past two seasons.
Why this matters: The move comes just months after the brand hired former Balenciaga deputy CEO Laura du Rusquec as its new chief exec, as it aims to make a mark on the global fashion industry. “Ganni has established itself globally, and as we enter our next chapter of growth, showcasing in Paris is a natural evolution for our brand equity and scale,” du Rusquec said in a statement.
Temu stock plunges
Things are suddenly looking a bit uncertain over at Temu, as the stock price of parent PDD Holdings plunged 29% after Temu’s Q2 earnings report. The drop was preceded by a sales slowdown warning from co-CEO Chen Lei. “Competition is here to stay and is expected to intensify in our industry,” Lei told analysts on a call. “High revenue growth is not sustainable, and a downward trend in profitability is inevitable.”
Why this matters: While things have been tough for many fashion retailers, the news comes as somewhat of a surprise, as ultra-fast fashion e-comm brands like Temu and Shein have in general seen sustained consumer interest. In fact, a recent survey found that 34% of shoppers purchase an item from Temu at least once a month. Lei has cited fierce competition from Shein and other brands as one of the factors in its revenue slowdown.
Abercrombie sales rise, share price drops
In more surprising news, Abercrombie & Fitch Co surpassed analyst expectations with an 18% comparable sales increase in Q2, but the share price fell 15% in New York trading on Monday. That represents Abercrombie’s biggest share price drop since May 2022, Bloomberg reported.
Why this matters: An analyst who spoke with Bloomberg cited the brand being held to a “higher standard” than others, and CEO Fran Horowitz cited an “increasingly uncertain environment” for fashion retailers.