Kering reported second-quarter sales down 11 percent, dragged down primarily by flagging sales at Italian mega-brand Gucci.

Gucci’s sales fell 20 percent in reported terms, and 18 percent on a currency-adjusted basis as plans to relaunch the label under a new executive team and designer continued to falter.

One year into the tenures of Gucci chief executive Jean-François Palus and creative director Sabato de Sarno, a sleeker and more heritage-driven vision for the brand has yet to reignite consumer demand in an increasingly challenged market for luxury goods, as shoppers rein in spending on high-end brands after a multi-year surge.

Saint Laurent, once the most stable growth engine in Kering’s portfolio, also reported falling revenues, down 7 percent on a comparable basis, while sales in the group’s Other Houses unit comprising Balenciaga and Alexander McQueen fell by 6 percent. Bottega Veneta reported flat revenues.

Stay tuned to BoF for updates on this developing story.

A Swiss watch brand owned by French luxury conglomerate LVMH is in talks to take over as the official timekeeping sponsor of Formula 1 motor sports racing, one of the most high-profile and expensive marketing agreements in sport.

Top Swiss brand Rolex has served as the official timekeeping sponsor of Formula 1 since 2013, its signature green and gold adverts becoming commonplace at F1 tracks. The popularity of Formula 1 has exploded during the period driven, in part, by the success of the Netflix series ‘Formula 1: Drive to Survive.’

Now Tag Heuer, a smaller Swiss watch brand owned by LVMH, is in talks to take over the F1 sponsorship deal, LVMH chief financial officer Jean-Jacques Guiony confirmed in a conference call Tuesday evening following the company’s second quarter financial results.

“There are some discussions, but it’s not something I can elaborate on,” Guiony said. “Nothing is decided,” he added.

A Rolex spokesperson in Geneva declined to comment. A spokesperson for Formula 1 also declined to comment.

The talks underscore LVMH’s ambitions for its watch unit, which includes the Tag Heuer, Hublot and Zenith brands. The combined sales of the watch unit, led by Frederic Arnault, one of LVMH founder Bernard Arnault’s five children, trail Rolex, as well as brands owned by Richemont and Swatch Group AG in total market share.

The Tag Heuer brand has a long history with Formula 1 and motor sports, dating back to when it was privately owned under the Heuer brand name. In the 1980s Tag Heuer introduced a quartz-powered, bright-coloured plastic-cased timepiece that sold millions of units. The brand introduced a limited edition reissue version of the Formula One watch in a collaboration with sportswear brand Kith this year.

Coronet, an online blog dedicated to Rolex news, first reported on the talks earlier this month. Coronet reported that Rolex currently pays “tens of millions of dollars” annually under the sponsorship deal and that a potential new annual contract with LVMH could be worth $150 million.

The discussions come amid an industry wide downturn in demand and sales for Swiss watches and changes in the executive suite at LVMH’s watch brands. The company said Antoine Pin would take over as CEO of Tag Heuer after Julien Tornare departed the role for the top job at Hublot after less than a year in the post.

By Angelina Rascouet and Andy Hoffman

Learn more:

Can Luxury Watch Brands Grow in 2024?

Higher-than-expected export figures fuelled hopes that the industry can avoid a downturn. At LVMH’s Watch Week gathering in Miami, the chief executives of Bulgari, TAG Heuer, and Hublot and Zenith spoke to BoF about adapting their strategies for an uncertain market.

Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.

Sergio Rossi has hired Paul Andrew as its new creative director, the brand said in a statement.

Andrew previously established himself with a namesake shoe line before going on to serve as creative director of Salvatore Ferragamo, where he was the first designer to oversee all categories for the family-owned brand. He exited Ferragamo in 2021.

Sergio Rossi described Andrew’s work as “daring and pragmatic, balancing handmade craftsmanship with the latest material and technological innovations.”

The brand, best known known for its $900 strappy sandals and slingback pumps, rose to prominence in the 1970s and ‘80s as its founder collaborated closely with the hottest couturiers of the era, including Gianni Versace and Azzedine Alaïa.

The brand was sold in 2021 to China’s Fosun Group, which has since rebranded as Lanvin Group, after a stint under private equity firm Investindustrial since 2015. Previously, Sergio Rossi was owned by French luxury group Kering, which struggled to achieve growth and profitability in the discount-prone luxury footwear niche.

Revenue fell 4 percent to €60 million ($65 million) in 2023, and the brand named a new chief executive, in November, Helen Wright.Owner Lanvin Group also named a new CEO, Eric Chan, following the exit of Joann Cheng, who had piloted the group’s New York IPO. Shares in Lanvin Group have lost 85 percent of their value since it went public in late 2022.”

With his creative design expertise and forward-thinking approach, Paul is set to lead Sergio Rossi into a new era of success,” Chan said in a statement. “This new direction for the brand aligns seamlessly with our mission to uphold its rich heritage while catering to the evolving tastes of our clientele.”

AG1, the parent company of Athletic Greens, a nutritional supplement, announced that Kat Cole will be its new chief executive, succeeding AG1 founder Chris Ashenden.

Cole joined AG1 in 2021 as president and chief operating officer; she was responsible for scaling the business’ operations and expanding the company’s manufacturing, sourcing, and supply chain capabilities. She previously held roles at GoTo Foods, formerly Focus Brands, as president and chief operating officer.

In this new role, Cole will be tasked with ushering the company into its “next phase of business growth, global expansion and innovation,” according to a statement from AG1.

Learn more:

The Death of the Detox

Gen-Z are not into all-or-nothing health practices — the hallmarks of wellness that have become cornerstones. What’s left is something far more subversive.

For a long time, the conversation around men’s wellness began and ended with muscle-building protein shakes and creatine powders.

But lately, that discussion has broadened to include concerns around declining fertility in men, which has shifted from a fringe movement into the mainstream. A small, but headline-grabbing, May 2023 study published in the scientific journal “Toxicological Sciences” found microplastics in every human testicle it examined. Other studies have shown that sperm counts across the world have halved over the last 50 years, with the pace of decline more than doubling since 2000. Other studies have disputed these findings.

“PFAs, microplastics, etc are being found everywhere including in male testes … natural fibre [sic] boxers, ‘cleaner’ skincare products, proper fragrances, bedding, etc will be more of a concern to men moving forward,” fitness expert Joe Holder posted on X, formerly known as Twitter, referencing the study. He added that he has been trying to convey this message for over five years “without sounding like a psycho.”

Such news arrives at a uniquely opportune moment in time for the wellness industry. On social media, medical influencers like neuroscientist Andrew Huberman and physician and author Peter Attia have increasingly correlated physical health with professional, social and romantic success, compounding fears about the effects of modern life on overall health.

That changing mindset has helped open the door for a wave of products meant to boost male fertility and virility. At US healthcare stalwart The Vitamin Shoppe, sales of testosterone support products are up double digits compared to last year, while sales of its own “Ultimate Libido” supplement have also grown double digits. In August, the retailer will start to offer testosterone replacement therapy (TRT) via its telehealth platform — the treatment works to boost testosterone levels in the body when it fails to produce enough on its own. Low testosterone levels can indirectly affect fertility through decreasing libido and increasing erectile dysfunction, while some research indicates it impacts overall sperm counts.

Emerging brands have their own take: Mars Men offers a “natural testosterone support” supplement while Human Desire makes a libido-enhancing soda. In a particularly clever stunt, for its latest campaign, personal care line Dr Squatch paid to insure entertainment personality and father of 12 Nick Cannon’s testicles for $10 million to promote its new range of “ball care” products.

“For many decades, [infertility] was thought of as a female-led problem,” said Osman Khan, an investor in wellness brands at venture studio Squared Circles. “People are now coming to the fact that there is another half of the equation.”

Still, figuring out the space presents challenges. While the average man may now be slightly more receptive to sales pitches than he’s been in the past, the market is fragmented. Much of the male motivation to engage with fertility and virility is less about fatherhood, and more about masculinity.

The way to a man’s heart may be through his stomach, but the way to his wallet is a little more complex.

An Open Book

The market is not without controversy. Huberman, cited by some wellness influencers as an inspiration, was the subject of a critical New York Magazine article in March that examined his relationships with women in his life. Some testosterone supplementation enthusiasm began with right-wing commentators and extremists like Alex Jones who popularised it on his Infowars platform.

There’s also the complexity of the issue – researchers have yet to definitively ascertain if there is a global male fertility crisis, let alone whether OTC supplements can solve it.

However, everyday men are certainly more comfortable talking about the topic, and seeking solutions.

Over the last decade, there’s been a clear de-stigmatisation of conditions such as hair loss and erectile dysfunction, hastened by the arrival of telehealth services such as Hims that offer discreetly prescription products in modern, snappy branding. In the UK, Cialis, a Viagra alternative, became available over the counter last year.

“Every conversation that I’ve had with men about wellness and longevity in the last year, if not more, has at some point turned into ‘Should I go on TRT?’, said Garrett Munce, grooming editor at Men’s Health and Esquire.

However, reaching men remains tricky. Khan pointed out that women’s fertility brands often use obstetricians and gynaecologists to market and explain their products, individuals who women are familiar with interacting with. Whereas women are used to screening services such as pap smears and mammograms, men don’t tend to be offered check-ups until they’re much older. Plus, men are also not socialised to think about their health from a preventative point-of-view, said Munce.

“[Men] don’t ever want to go to someone who tells us about our sperm quality or how everything’s sort of functioning and working [unless there’s an issue],” he said. “Men are very reactive … if something goes wrong, then a guy will tackle it.”

Always Be Optimising

To work around these attitudes, and to avoid falling foul of regulations that limit what benefits can be claimed, many brands are framing their product’s benefits to focus on “optimisation” rather than cure or treatment.

Mars Men’s customer might not be thinking about fatherhood yet, but he might be thinking about how to exercise more efficiently or getting an edge at work, said co-founder Benjamin Smith. Its $89 Natural Testosterone Support supplement contains ingredients like zinc and fenugreek, as well as tongkat ali, a herb found in parts of south-east Asia popularised by the likes of Huberman as a testosterone booster.

“For now, we’re really leading with, ‘Are you low energy? Is your libido low? Are you not making the sort of strength gains you’re interested in in the gym?’” said Smith.

Still, brands are trying to shift behaviour from problem-oriented to overall well-being. Khan gave the example that women are usually offered prenatal vitamins as soon as they’re thinking about conceiving, yet the same suggestion doesn’t occur for men.

Smith said that many of Mars Men’s customers are searching for ways to regain youthful vigour without needing to turn to standard medical treatments. “Men just want to feel as good as possible, and especially as they get older,” he said, adding that a large majority of its customers are over 40.

By courting the customer from an optimisation perspective rather than problem solving, brands may also be able to hang onto customers for longer, according to Alexander Gilkes, co-founder of Squared Circles.

“If you only recruit men at the cusp of fatherhood, you’ve only got them for a 12 month journey, and then they fall off a cliff,” said Gilkes, adding that other issues like incontinence and testosterone concerns may kick in later in life.

How to Market to Men

Despite modernisation in men’s attitudes, proximity to the sports fitness category is still likely the easiest inroad into the category.

“What we began to see a few years ago is customers that might have been stopping in on their way to the gym and picking up a protein shake … began to have much more of an interest in a completely fit lifestyle,” said Muriel Gonzalez, president of The Vitamin Shoppe. “It’s not just a question of going to the gym and bulking up.”

At Mars Men, Smith said he doesn’t think hypermasculine vibes are “needed,” adding that he finds a subtle, elegant approach more appealing. Still, he wants to be clear on the target audience: “[It’s] for men,” he said.

Munce said the most potent approach could still be word of mouth, or at least targeting more every day men who can evangelise to their personal network.

“Men are pack animals … they don’t like to be the one outlier. You [need] to get a team, or a group.”

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