Flair and fanfare promise to light up the Milan Fashion Week catwalks, but upcoming shows will struggle to distract from a worrying slump in the luxury sector.
For six days, the northern Italian capital of fashion will showcase Autumn/Winter 2025-2026 women's looks – while scrambling behind the scenes to react to macroeconomic headwinds cutting into sales.
Milan's glamorous showcase for the latest fashion trends, which ends on Sunday, comes during a difficult moment for Italian fashion, with estimates showing sales having fallen by 5 per cent last year.
Italy's woes are part of a global slump in the sector, driven by weakness in the key market of China, reduced appetite for high-priced goods, and widespread economic uncertainty.
Gucci – once the pride of fashion week but now the worst performer in Kering's portfolio – kicks off the week-long party this week in Milan.
The French group earlier this month announced a jaw-dropping 23 per cent drop in sales at Gucci, its flagship brand accounting for almost half of the revenue of the group, whose sales have not recovered despite an announced turnaround.
Just over two weeks before the show, Gucci announced the departure of its creative director, Sabato de Sarno – after just two years on the job.
Kering Chief Executive Francois-Henri Pinault tried to temper the fallout, telling analysts during its annual presentation this month that measures were being taken to "strengthen the health and desirability of our brands for the long term."
"Gucci will come back. I have absolutely no doubt," Pinault said.
The net profit of Kering – which also owns Saint Laurent and Bottega Veneta, the latter a bright spot in the portfolio – plunged 62 per cent last year to 1.13 billion euros ($1.18 billion).
Consultants Bain & Company have estimated that only about a third of the world's luxury brands experienced growth in 2024. afp
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