The head of LVMH’s business unit that operates the Sephora beauty chain and Parisian department stores is set to leave the luxury group, according to people familiar with the matter.

The departure of Chris de Lapuente, who oversees the selective retailing division of LVMH Moët Hennessy Louis Vuitton SE, is likely to be announced this week, the people said. It’s unclear why the UK-born executive is leaving.

De Lapuente, 61, joined LVMH in 2011 as chief executive officer of Sephora. He became a member of the executive committee of LVMH that same year.

His business division also includes Parisian department stores Le Bon Marché and La Samaritaine, as well as DFS, the luxury travel retailer with a significant exposure to Asia.

Sephora’s booming sales helped the division to outperform LVMH’s other units last year and in the first half of this year. While selective retailing has gained ground, LVMH’s fashion and leather goods unit remains the company’s biggest and most profitable business.

LVMH and de Lapuente didn’t immediately reply to a request for comment.

By Angelina Rascouet

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LVMH’s Sephora Cuts Around 10% of Staff in China as Woes Deepen

The beauty retailer is laying off hundreds of staff in China as it seeks to revitalise its struggling operations in the world’s second-largest economy, while also seeing departures among senior executives.

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Background

A style renaissance that changed how many men dress — mostly for the better — has congealed into a sea of sameness, at least in the eyes of a growing number of fashion critics and influencers. Too many interchangeable brands take the same approach, blending tailoring with casualwear in neutral-toned collections that are stylish but often fail to inspire. The look is often derided as a menswear “starter pack,” but remains popular with consumers.

This week on The Debrief, Brian Baskin sits down with correspondents Malique Morris and Lei Takanashi to discuss why this “starter pack” approach works for the industry — but at the cost of long-term brand building and customer loyalty. Additionally, they probe what brands must do to recapture consumers’ imagination.

“Any brand can make a good product, but what makes a brand good, especially a good menswear brand, is having a great story that’s worth telling,” says Takanashi.

Key Insights

• Menswear brands today are following a familiar formula, leading to a prevalence of “starter pack” lookbooks. “They all do some sort of version of this. Approachability, timeless, stylish and handsome but inoffensive look,” says Morris. This marketing playbook, popularised by brands like Aimé Leon Dore and followed by many others, has led to a lack of creativity and experimentation. As Morris puts it, “everything is good and nothing is great. So if everyone can dress well, then no one is actually cool.”
• What makes brands stand out over decades isn’t radical changes in design, but compelling storytelling and myth making. Morris argues consumers may not be loyal to today’s menswear brands in the long term if they’re just buying into a trendy and easy to copy aesthetic.
• But Takanashi notes that for certain brands that are seen as authentically embracing this style, their best bet is stick to what’s worked: “I feel like in the case of brands like Aimé Leon Dore and Supreme, the long game for them is becoming a heritage label … they have such a distinct point of view that they will always have a core consumer.” As Morris puts it, “what brands should think about is just being themselves.”

Additional Resources

• Why Menswear Is Getting a Marketing Refresh: As critics argue that menswear labels’ homogenous marketing style has made for a feeling of sameness in the sector, start-ups are beginning to invest in imagery that will set them apart from their competitors.
• Can Off-White Get Back on Track? In recent years, the death of founder Virgil Abloh, a troubled push upmarket and the near implosion of Farfetch have dealt severe blows to one of the world’s most successful luxury streetwear brands. Off-White CEO Cristiano Fagnani sat down with BoF to outline his ‘reset’ strategy.
• How the Streetwear Customer Is Evolving: Streetwear is by no means dead, but its customers are changing. Today they’re embracing a diverse wardrobe that mixes logo T-shirts with heritage brands and traditional menswear or luxury.

The best luxury brands rarely go on sale. Not so their share prices.

Valuations across the sector have tumbled on a deteriorating Chinese economy and sluggish US demand. But investors with a long-term view may be able to salvage something from the bursting of the bling bubble.

The hoped-for rebound in top end goods this year has yet to materialise. The next few months, and into 2025, look tricky. The main culprit is China, whose shoppers accounted for 23 percent of the global personal luxury-goods market last year, according to Bain & Co., and where appetite for Louis Vuitton handbags and Burberry scarves has stalled.

Indeed, concerns are rising that the market has declined further amid a prolonged economic downturn and housing slump. Weak Swiss watch exports to China and Hong Kong; LVMH Moet Hennessy Louis Vuitton SE’s Sephora laying off 10 percent of its 4,000-strong workforce in China and sluggish tourism to Europe are all adding to the sense of gloom.

While the US is showing some improvement, thanks to stock indexes recovering after the brief selloff in August, and the fact that European luxury groups have opened stores there in the past few years, the forthcoming presidential election makes for an uncertain holiday season.

Disruption in Paris over the Olympic and Paralympic games, and limited switching to other cities such as Milan, hasn’t helped either. Add in signs of a luxury backlash after big price increases, and the outlook is bleak.

According to analysts at HSBC Holdings Plc, luxury sales growth excluding currency movements could be just 2.8 percent in 2024, the sixth-worst year in the past two decades, based on its estimates of prior-year sales.

Little wonder that stocks have fallen. The MSCI Europe Textiles, Apparel and Luxury Goods Index is down more than 25 percent since its high in March. The typical premium to the MSCI Europe Index has narrowed.

LVMH, the world’s biggest luxury-goods group, and a proxy for the sector, is at its lowest level for two and a half years, after losing more than 30 percent of its value. Consequently, it trades at a price-earnings ratio of about 19 times, below its five-year average of 26.5, according to data compiled by Bloomberg, and its 30-year average of 21, according to analysts at Stifel.

Of course, the danger is that the earnings side of the equation comes under more pressure. The post-Covid-19 boom inevitably drove up companies’ costs. But even so, long-term the appeal of bags and other baubles should be undiminished.

In China, consumers are wearing luxury differently – mixing and matching with cheaper brands, and spending more on experiences, for example. But demand from the country’s shoppers won’t disappear. Bain & Co. still expects them to account for a bigger share of the personal luxury-goods market by 2030. While there won’t be another China to turbocharge growth, there will be pockets of new shoppers elsewhere. Brands, for example, are becoming increasingly interested in India.

At the same time the US’s relationship with top-end goods has fundamentally changed. Up to a few years ago, the country was an under-penetrated market. But Louis Vuitton’s appointment, first of the late Virgil Abloh, and then musician Pharrell Williams, as creative director of its menswear range, has made the European names more accessible to a broader range of US consumers. Shoppers may be holding off for now, after having overindulged, but even with the current indigestion, that relationship is unlikely to break down altogether.

Against this backdrop, LVMH looks well placed. Although it is exposed to the difficult wines and spirits sector, it owns two of the world’s biggest luxury brands: Louis Vuitton and Dior. Its might – sales have risen about 60 percent since 2019 – means it can afford to shout louder than rivals, keeping its brands at the forefront of consumers’ minds.

Investing €150 million ($167 million) to be the Olympic and Paralympic Games’ creative partner, and an expected €150 million deal to sponsor Formula One underline how it can outspend rivals. There might even be opportunities to employ its strong balance sheet to acquire. Despite its scale, it still has room to grow in watches, skincare and hospitality.

Although shares in Hermes International SCA haven’t fallen as far as peers, they have given up most of their gains this year. The company is more resilient, as it can effectively dictate its own level of demand. Far more consumers want to buy its coveted Birkin and Kelly bags than are available, meaning it has a continual supply for customers. Consequently, it still trades on a forward P/E of about 41 times. But that’s below the five average of 49.

It’s a similar picture at Cie Financiere Richemont SA, down almost a quarter since June. It has exposure to the struggling Swiss watch sector, but 52 percent of its sales last year came from jewellery, which may hold up better, given that price increases have lagged those of many handbags. It owns two of the top brands, Cartier and Van Cleef & Arpels – still favourites among Chinese shoppers. And Prada SpA, also down about 25 percent since late May, is still generating strong growth, thanks to the popularity of its Miu Miu sister label, where retail sales rose 95 percent in the second quarter.

But turnaround stories such as Kering SA, where a more muted revival of Gucci has driven the shares to a seven-year low, and Burberry Group Plc’s latest attempt to reinvent itself, look more vulnerable to worsening conditions.

The risk for all is that the Chinese contraction turns into a more protracted rout, rendering the luxury slump deeper for longer.

But the pain from the bling bloodbath won’t be felt evenly. As with a watch or handbag, investors should choose the names that can stand the test of time.

By Andrea Felsted

Marni Spring/Summer 2025

In this episode of Backstage Pass, Tim Blanks goes backstage at Marni’s Spring/Summer 25 show to interview designer Francesco Risso on his inspiration for the brand’s latest collection.

Read More: Milan Goes to the Movies

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Watch more episodes of Backstage Pass with Tim Blanks:

Versace: Finding Joy in Troubled Times

Telfar is moving upmarket.

Next month, the 20-year-old independent brand will introduce a line of totes called The Carry. Made from full-grain pebble leather, it marks Telfar’s first line of bags not made from its signature vegan leather.

The line will be priced from $400 for a small tote to $960 for a large, more than four times higher than Telfar’s vegan leather shopping totes, which run from $150 to $257.

To debut The Carry bags, Telfar is opening a pop-up boutique inside Selfridges from Sept. 30 to Nov. 2. The concept shop marks Telfar’s latest attempt at a physical store. In 2022, the company opened a pop-up in New York and announced a permanent store in the city the same year, but one has yet to materialise.

The brand will also launch a capsule collection of leather apparel, including maxi skirts and a full-length trench coat, made in partnership with clothing and accessories maker Wilson Leathers.

In the past decade, Telfar has grown into a venerable competitor in the accessible luxury handbag market. Its vegan leather totes, sold directly to consumers on the company’s website, have become status symbols among Gen-Z shoppers, earning it the nickname of the “Bushwick Birkin.” Telfar Clemens, the brand’s namesake designer, won the CFDA accessories designer of the year award in 2021.

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Telfar Bags, Vegan Leather and an Unexpected Lesson

The response to a tweet about the durability of Telfar’s Shopping bags contains an important takeaway for brands navigating the complex sustainable fashion space.

Alberta Ferretti is stepping down as creative director of her namesake brand, the Italian designer and entrepreneur announced Tuesday.

Feretti said the brand would announce a successor soon. The decision to step down was “difficult, complicated, but very thoughtful,” Ferretti said in a statement. “It’s time for me to make room for a new chapter for my brand, a new narrative.”

Ferretti will continue in her role as deputy chairman of Aeffe, the Italian luxury group she founded in 1988.

Ferretti, aged 74, has left a mark on Italian fashion as one of a handful of leading female entrepreneurs alongside Miuccia Prada and Donatella Versace.

Her eponymous brand was born in 1981 during the height of the country’s ready-to-wear boom. Starting from a small family business, Alberta Ferretti went on to acquire Moschino and Philosophy di Lorenzo Serafini. The company now counts 1,300 employees.

In recent years, sales have slipped at Alberta Ferretti and her holding Aeffe due to an overdependence on discount-prone wholesalers and expensive ready-to-wear; as well as an ageing customer base and competition from global luxury groups.

Aeffe reported a net loss of €20 million ($22.27 million) in the first six months of this year. In 2023, its consolidated revenue fell by 9.5% to €319 million (from €352 in 2022).

On Zalando, a golden Alberta Ferretti evening gown currently retails at €3,200, with many items highly discounted (e.g. a fuchsia cocktail dress discounted from €2,200 to €1,100.)

There are hopes for a turnaround at the Aeffe group’s biggest brand Moschino, however, since revamping its collections under a new creative director this year. Argentina-born designer Adrian Appiolaza, an alum of Loewe and Chloé, has managed to revive industry interest in the brand with a playful, yet less theatrical vision for the brand.

Learn more:

‘The Ordinary Becomes Extraordinary’: Adrian Appiolaza’s Moschino Vision Takes Shape

Under new creative direction, the Italian fashion house is rebalancing its surrealist, campy image with a more grounded silhouette. ‘It was important to find the line between reality and theatricality,’ Appiolaza told BoF.