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Harrods sales flat despite challenging condition, but profits hit by Fayed compensation

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Harrods sales flat despite challenging condition, but profits hit by Fayed compensation


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October 5, 2025

Last week 2024 Selfridges’ results showed how the luxury slowdown and lack of VAT-free shopping for tourists remain a problem for high-end retailers. And on Sunday Harrods did the same, releasing its numbers ahead of its filing at Companies House.

Harrods

Harrods Group (Holding) Limited saw gross transaction value (GTV) excluding VAT falling 2.4% to £2.198 billion for the year to February 2025, although turnover edged up 0.6% to just under £1.082 billion, which was below the Uk inflation figure. A year earlier, those numbers had risen 6.6% and 8.2%, respectively.

Operating profit (before exceptional items/pension loss on settlement) fell by 17% to £177.7 million and profit before tax was was actually a loss of £34.3 million, having been a profit of £111.5 million a year ago. Profit after tax was also a loss this time of £36.5 million. In the prior year, net profit was a positive figure of £76.7 million, although that was a fall from £135.8 million.

MD Michael Ward explained that the fall in operating profit reflected “reflecting investment in employee salaries and increased distribution costs”, while “continuing to demonstrate the strength of the fundamentals of our business”.

But why did it swing to such a large pre- and post-tax loss this time? Ward said the accounts include “significant exceptional costs… which have impacted profit. These costs include the strategic digital transformation of our enterprise resource planning system and a provision for redress and associated costs for survivors of historic abuse perpetrated by Harrods former Chairman and owner Mohamed Fayed. Compensation awards and interim payments began being issued to eligible survivors at the end of April 2025 and the scheme will remain open until 31 March 2026”. 

Harrods

The Mohamed Fayed scandal was bound to have a big impact but while it understandably continues to generate negative headlines, the turnover figure shows that shoppers clearly see a difference between the business as it is now and as it was then and it remains one of the world’s most prominent luxury retailers.

Ward focused on the positives saying that “2024 was a year of stable trade for Harrods [regarding] turnover… despite trading conditions in the luxury sector remaining challenging and once again showing outperformance by Harrods of the luxury industry as a whole”. That outperformance came in comparison to the latest Bain & Company and Fondazione Altagamma estimate that overall luxury spending dipped to €1.48 trillion globally in 2024.

Ward said that the “results demonstrate the resilience of Harrods’ business strategy of commitment to exceptional customer offerings and ongoing investment in this period across our Knightsbridge store including the continued redevelopment of our womenswear spaces and renovation of The Georgian restaurant”.

But the market remains challenging, Ward added, although he also said that “we remain confident in the strength of the business, and the resilience of the luxury sector, and that we will continue to drive progress towards longer-term growth and performance objectives”. 

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Paris Fashion Week Saturday: Alaïa, Maison Margiela, Hermès, and Vivienne Westwood

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Paris Fashion Week Saturday: Alaïa, Maison Margiela, Hermès, and Vivienne Westwood


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October 5, 2025

Amid downpours and traffic snarls, Paris Fashion Week enjoyed a quartet of hyper distinctive shows on Saturday from an epic Alaïa, disquieting Maison Margiela, uber equestrian Hermès, and boudoir-driven Vivienne Westwood

Alaïa: Epic staging, energetic collection

Now that’s what we call smart synergy. Creative director Pieter Mulier took his latest show for the house of Alaïa to the Foundation Cartier – a fellow Richemont-owned brand – and the result was a show of pure beauty.

Alaia – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

Staged on the ground floor of the Jean Nouvel-designed foundation, the entire floor was made of LED panels, allowing the cast to march on magnificent images of feminine beauty, with close-ups of faces the size of squash courts. A mirror ceiling meant the photography saturated the space, heightening a sense of drama.
 
“I wanted to create a cocoon of imagery,” smiled Mulier, as he was deluged with praise.

Riffing on the house’s DNA of sexy empowerment, the Belgian designer cut sleek cocktails in technical fibers, silk or ribbed knits with inserted transparent breastplates and diagonal fringes that were flawless. 
 
He cut strict lizard-skin cloaks and tunics, and draped with enormous skill — a series of V-shape skirts in layers and folds of cotton and silk jersey were stunning. As was a black leather perfecto with displaced shoulders that morphed into a grand gown. One suspected founder Azzedine would have loved that look. 
 

Alaia – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

“Sexy, but always very simple and precise,” said Mulier, wearing a white sweatshirt and socks, old jeans and loafers, as he embraced his old boss Raf Simons in a huge hug at the finale.
 
He took plenty of risk, with hanging fringe pants worn with surgeon’s smocks. His cotton coats looked like conceptual fracks – short at the front, ankle grazing at the back. Though, Mulier could be occasionally guilty of over thinking with dresses that suddenly tied around the ankle, or jerseys that seemed to strap in models’ arms. Not exactly empowering, nor Alaïa.
 
But, overall, this was a memorable moment of mode. And a reminder that Richemont’s fashion division, once a problem child, is a happening center of excellence, and profits.
 

Maison Margiela: Silenced lambs, noisy kids

At his couture debut for Maison Margiela, Glenn Martens insisted on covering every models head a mask or hood. For his ready-to-wear debut for the house this season, Glenn stuck braces in each model’s mouth, so their teeth flared angrily – Silence of the Lambs-style.

Maison Margiela – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

In July, when masked ICE agents had just got into full swing cruelly rounding up allegedly illegal immigrants, to see masked models was at the very least disconcerting. Now, amid a brutal crackdown on free speech, watching a cast’s mouths forcibly kept open was bewilderingly heavy-handed. The point could have been made with just a few looks.
 
The discordant mood both leavened and highlighted by a live children’s orchestra. In full orchestral dress on an all-white stage, they played – in and out of tune – classic works like Bizet’s “Carmen”, Tchaikovsky’s “Swan Lake” and Prokofiev’s “Romeo and Juliet”. 
 
A weird juxtaposition to the witness the Hannibal Lecter casting. That said, Martens produced a very good collection, at times a brilliant one, especially when it came to tailoring. 

Maison Margiela – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

Riffing on a novel concept, a splendid new tuxedo waistcoat, and cutting some great blazers and dusters with dropped waistlines. 
 
His lapel-free denim jackets and coolly twisted jeans with exposed drawstrings all looked great, as were similar versions in lived-in rawhide. And he had a very Margiela moment with some slip dresses finished with mock silver gaffer tape.
 
Glenn went into overdrive, as he “declined” an idea from his couture debut in July. A beautiful series of 16th-century floral prints seen in beguilingly punchy dresses and cocktails.  
 
Though, the salient memory of the show would have to be the models’ mouths.
 

Hermès: Determinedly equestrian

No designer stuck closer to a brand’s DNA this season than Nadège Vanhee, who played on equestrian motifs with every single look.

Hermes – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

Chez Hermès, they often refer to the horse as their first client, and equine motifs informed each passage in this show, staged with consummate elegance inside the riding center of the Garde Républicaine. 
 
Her key fabric was the finest matelassé and quilted leather culled from horse blankets, used most notably in seductive tops, corsets and some superb wrap skirts. 
 
Rarely have we seen a more body-con collection from Hermès – from the waxed leather sheaths in black and beige, paired with riding boots, the models prowling about seductively. Guests sat on wooden blacks, as the cast dashed by on a runway speckled with seashells.
 

Hermes – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

Nadège got her inspiration from a Camargue saddle and Provencal motifs rippled through many looks. At times a tad too literally, and provincially.
 
A punchy series of boleros and urban hacking jackets were all finished with silver steel clasps, horse-bits, mini stirrups and leather reins. Racy, as much as racing, were the words that came to mind watching this show giving its strict silhouettes and revealing flesh. And quite frankly, hotpants and Hermès were two words we never expected to write in the same sentence.
 
Nadège is a very talented designer who has created a great body of work with Hermès. But this season it looked like she was trying too hard to be cool. 
 

Vivienne Westwood: Boudoir and beautiful

Few British fashion houses are more loved in France than Vivienne Westwood, adored by the great public, respected by all designers, and celebrated on Saturday with an epic afternoon show. 

Vivienne Westwood Spring/Summer 2026 collection in Paris
Vivienne Westwood Spring/Summer 2026 collection in Paris – Courtesy

A collection unveiled inside France’s Holy of Holies, the Institut de France, where the country’s greatest writers, intellectuals and scientists are consecrated.
 
Since Vivienne’s passing, her successor and former husband Andreas Kronthaler has guided the house. And this was his greatest collection so far. Entitled “Boudoir”, it managed to blended lingerie, pajamas, pampering, voluptuousness and naughtiness in a great display.
 
Made in rich Italian jacquards and damasks, mixed up with curtain materials, the collection was often an explosion of color. Created superb gowns that managed to perfectly mix historicism with hipness.
 
In a co-ed show, guys strutted in micro togs, topped by shards of contrasting silk tops – leopard print, tie-dye and tartan. One disco dragoon wowed in a check three-piece suit were the pants were mini shorts and his feet shod in perforated pirate boots.

Vivienne Westwood Spring/Summer 2026 collection in Paris
Vivienne Westwood Spring/Summer 2026 collection in Paris – Courtesy

Both men and women wore sleek silk double-breasted suits, like the one in which Andreas took his bow. 
 
With Paris and Nicky Hilton sitting front row, Andreas delivered the coolest of finales: Heidi Klum, as an ironic take on her Victoria’s Secret era. Looking sensational as a Restoration-era femme fatale in crystal encrusted white leotard, garters and a cloud of taffeta.
 
Kronthaler garnering an immense burst of applause as he took his bow with Klum. Holding a five-foot-long bouquet of sunflowers, he then led the cast to posing together on the steps of the Institut, amid thunderous cheers. 

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ICE cotton ends higher on weak dollar, but weekly loss persists

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ICE cotton ends higher on weak dollar, but weekly loss persists



ICE cotton futures bounced back and closed higher yesterday. A weaker US dollar supported US cotton, as the currency’s softness made it cheaper for overseas buyers. However, ICE cotton still posted a weekly decline, reflecting persistent uncertainty over the US government shutdown.

ICE December cotton futures settled at 65.30 cents per pound, up 0.21 cent (0.3 per cent). The March contract, however, dropped 1.7 per cent (110 points), hitting its lowest level since May 30, 2025. March and May contracts closed higher by 14–21 points on the day but were 41–109 points lower on a weekly basis.

ICE cotton futures closed higher supported by a weaker US dollar, which made the fibre cheaper for overseas buyers.
However, prices still posted weekly losses amid uncertainty from the US government shutdown that has stalled USDA reports and pressured markets.
December settled at 65.30 cents/lb, up 0.21 cent, while March dropped 1.7 per cent to its lowest since May 2025.

Daily trading volume on October 3 was 40,408 contracts, compared to 42,492 in the previous session. The average daily volume for the week stood at 49,878 contracts, indicating slightly lower trading interest compared to the weekly average.

The US dollar index retreated, extending its multi-week decline against major currencies. A weaker dollar typically supports dollar-denominated commodities such as cotton by making them cheaper for holders of other currencies. Analysts noted that the weaker dollar makes cotton purchases more affordable.

The US government shutdown began on October 1, 2025, after the federal government ran out of funding. On October 3, the US Senate again failed to pass a temporary funding bill, rejecting both Democratic and Republican proposals. The shutdown has added uncertainty to financial and commodity markets. No USDA reports were released during the shutdown, delaying critical crop and export data. Analysts expect sideways market movement until the shutdown is resolved.

USDA’s weekly crop progress for the week ending September 28, 2025, showed 16 per cent of the US cotton crop harvested, up from 12 per cent the previous week. This compares to 19 per cent at the same time last year and a five-year average of 16 per cent. Crop condition was rated 47 per cent good-to-excellent, unchanged from the previous week but significantly higher than 31 per cent last year.

Short-term price volatility is expected to persist until government funding is restored and key agricultural data is released.

Currently, ICE cotton for December 2025 is trading at 65.30 cents per pound (up 0.21 cent), cash cotton at 62.80 cents (down 0.29 cent), the October 2025 contract at 62.86 cents (up 0.21 cent), the March 2026 contract at 67.19 cents (up 0.15 cent), the May 2026 contract at 68.50 cents (up 0.14 cent) and the July 2026 contract at 69.58 cents (up 0.15 cent).

Fibre2Fashion News Desk (KUL)



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Pierpaolo Piccioli debuts at Balenciaga, with Meghan and Lauren applauding

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Pierpaolo Piccioli debuts at Balenciaga, with Meghan and Lauren applauding


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October 5, 2025

Saturday night in Paris witnessed the debut of Pierpaolo Piccioli at one of fashion’s most mythical marques, Balenciaga. With Meghan Markle and Lauren Sanchez applauding front row, this was surely the most sophisticated new designer inauguration so far.

Balenciaga – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

A collection that was all about the body and its rapport with clothing, in a beautiful, often whispery light, debut by Pierpaolo Piccioli for the legendary house of Balenciaga on a dank night in the French capital.
 
Piccioli clearly regards founder Cristóbal Balenciaga with awe, as a great artist who revolutionized fashion, and fabrics. Pre-show, his mood board featured images of Le Corbusier’s Colline Notre Dame du Haut church and Da Vinci’s “Vitruvian Man“, suggesting the forms that PPP would develop.

A first collection presented inside a church in a perfect cruciform within a former convent, which should have pleased founder Cristóbal Balenciaga, a regular Sunday mass church goer.

Balenciaga – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

 
The key material in this insurrection was gazar, a fabric technique that lightens and adds structure to any look. Piccioli was rightly obsessed with really digging deep into the DNA of the brand and its archive. So, he had the house manufacture special light protective body stockings live models could wear inside historic archive looks without doing any damage.
 
“Unless you actually see Cristóbal’s clothes move and turn on a live human body, I don’t think you fully comprehend them,” insisted Piccioli.
 
The result was a collection of rare elegance. Opening with faintly billowing columns, tunics and pants in organza gazar that ripped as the models walked by. But adding a dash of rock goddess chic with cocoon leather biker jackets, and a superb leather combo of truncated leather top and multifold skirt that billowed out.
 
Cristóbal was famed for using juxtaposed materials, something Pierpaolo played on in ivory sheaths trimmed with small fields of sliced white cock feathers. 

Balenciaga – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

Pre-show, the Rome-born couturier explained that he wanted to add air to his curving shapes, whether made in cotton and wool gazar, or second skin leather. He very much succeeded in the subtlest debut of the dozen so far on the four-week international calendar that ends on Tuesday.
 
Plus, he paired a new soft Bolero bag that one could fold and hold under arm.
 
Pierpaolo joined Balenciaga – a key house in French luxury group Kering – after an 18-month hiatus after leaving Valentino. He succeeded Demna, the Georgian-born designer who left to join Gucci, the largest marque in Kering.
 
Their visions for Balenciaga are very far apart. Demna, a refugee civil war in his native land, who had a dark dystopian vision of fashion, and life. 

Balenciaga – Spring-Summer2026 – Womenswear – France – Paris – ©Launchmetrics/spotlight

One of Demna’s most famous shows was set in a muddy battlefield with models dressed like battered refugees. Piccioli, by contrast, loves bright, vibrant colors. His color palette referenced the glorious colors of painters like Fontana, Rothko and Goya.
 
While his heroines were far more kicky and independent than the founder or Demna, opening the show with a remix of Sinead O’Conor singing “In This Heart”.
 
“Adding air to shapes. Making clothes that are ordinary yet extraordinary,” said Pierpaolo, explaining his goal. Staging a show of great grace, and aplomb and polish in a dark moment geopolitically and socially for the planet.
 
“In my view, putting your faith in humanity is the most radical act one can see today,” concluded Piccioli, who took an extended beaming bow amid a prolonged standing ovation.
 

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