Fashion
Luxury stocks’ nascent revival is about to face earnings test
By
Bloomberg
Published
October 14, 2025
The recent rally in the shares of luxury goods makers will be put to the test this earnings season, as valuations are already back at demanding levels.
After a rocky first half of the year, a gauge tracking the sector has jumped 14% over the past two months in a relief rally as damage from the Trump administration’s tariffs prove less severe than feared for exporters. That’s cranking up the pressure on companies to deliver market-pleasing results, even as they battle challenges like China’s uneven economic recovery and the stronger euro.
Earnings and sales growth for luxury companies has been lacking for almost two years amid falling demand from key markets such as China- which for decades had been a key support. Analysts have been cautious about calling a recovery, with data from Deutsche Bank AG showing no substantial acceleration in sales for the sector until the first quarter of 2026, at the earliest, as the industry remains stuck in its post-pandemic slump.
For this season, the sector could see easier year-earlier comparisons as third-quarter numbers begin to roll out- kicking off with LVMH Moët Hennessy Louis Vuitton SE on Tuesday. But the overall picture remains blurry.
“The recent rally does set the bar higher,” said Buenyamin Ak, a research analyst at Flossbach von Storch AG. “I would expect that providing unquantifiable, loose hopes would lead to disappointing price reactions.”
Europe’s flagship sector has grappled with lacklustre demand from the crucial Chinese market. Repeated calls that the sector’s most important source of growth is on the brink of a comeback have failed to prove correct.
Recent Chinese factory activity data showed evidence that sluggishness in the economy persisted through the end of the third quarter. Moreover, the summer ended with two of the weakest months for retail sales this year and the recent Golden Week holiday reflected subdued consumer spending.
To make things worse, the euro has climbed 12% this year against the dollar. That’s a burden on margins for luxury manufacturers, who have their costs based in the common currency but generate most revenue outside of Europe.
For some analysts, these twin external headwinds could provide the nudge companies need to confront problems closer to home.
“Weaker brands blame macroeconomics- tariffs, the China real estate market, geopolitical tensions- when the reality is more down-to-earth,” HSBC Holdings Plc analyst Erwan Rambourg wrote in a note. “Products grew too expensive and there was a lack of innovation/creativity.”
Investors have recently favoured shares in companies with a willingness to tackle internal crises dragging on performance. Take Gucci owner Kering SA and UK fashion brand Burberry Group Plc as examples. Their shares have climbed 27% and 21% this year, respectively.
After years of underperformance, Kering posted its best-ever quarterly stock gain on optimism that new CEO Luca de Meo will revive the Gucci brand. At Burberry, early signs of success from CEO Joshua Schulman on refocusing the brand on its British roots and better promoting its flagship outerwear products have triggered a recovery rally in the shares. However, the revival in sales and profits hasn’t materialised yet.
“There has been some speculative buying in recent weeks, focused on companies with new creative leaders but where we have yet to see any real evidence of an earnings inflection,” said Sam Glover, a fund manager at EFG Asset Management.
After seeing its stock plunging 42% between January and June, LVMH was upgraded to buy last week by analysts at Deutsche Bank and Morgan Stanley. They see the Christian Dior and Louis Vuitton owner as among the potential beneficiaries of less pessimistic sentiment among investors.
LVMH’s management team “has reacted with a number of management and creative designer changes,” said Deutsche Bank’s Adam Cochrane. “With a tough consumer backdrop, an increase in the pace of innovation and exciting customers with new products is paramount.”
But a look at analyst estimates for the company’s profits shows it still trails those of rival Hermes International SCA, while the rebound in the stock since June has sent its valuation back to near 25 times forward earnings.
Over the past month, fashion weeks in Paris and Milan have offered a glimpse of how luxury companies plan to convince shoppers to open their wallets again. Investors, however, may need more time before they share in the enthusiasm elicited by the latest catwalk presentations.
“If you just follow a fashion calendar and sort of a lead time, these collections would most likely come to stores at the very end of the second or third quarter next year,” UBS Group AG analyst Zuzanna Pusz said. “At this stage, that’s the earliest we could see things improve.”
Fashion
Brunello Cucinelli says multi-brand retailers are special and inspiring, but must remain consistent across physical and digital channels
Published
October 14, 2025
Brunello Cucinelli spoke at the NE(x)T Retail – The Future of Multibrand between Continuity, Transformation and Made in Italy conference, organised by Camera Buyer Italia in collaboration with the Ministry of Enterprises and Made in Italy and under the patronage of Camera Nazionale della Moda Italiana, praising the role of multibrand retailers while also urging greater consistency between the identity of physical stores and that of their e-commerce.
“I grew up with multibrand retail; until 30 years ago, that was the business, and even today we generate 40% of our sales through the wholesale channel. I owe a great deal to all of you, beginning with Mr Barney Pressman (founder of the New York department store Barneys, editor’s note), who, 40 years ago, came to our stand at Pitti Uomo, bought our jumpers and showcased them in New York — a dream for us,” said the Umbrian entrepreneur.
“Multibrand retailers are the true guardians of the brand: when you come to see our collections, if we as companies have the courage to listen, you help us understand whether they are contemporary and truly interesting. Your stores are a source of inspiration for us: when we prepare the collection for one of our single-brand stores in a particular city, we look to the finest multibrand stores in the same city for inspiration. Many of your stores have been there for many years; you are synonymous with culture and architecture, and it is a mark of prestige to say that we work with you.”
After such heartfelt praise, however, Cucinelli also highlighted some concerns: “The advent of the web was a delicate moment: in a physical store you can understand who we are; online it is more difficult. In my view, multibrand retailers need to establish a stronger identity online, as they have in physical stores. I understand that e-commerce generates a lot of turnover — although I believe it is not especially profitable — but the risk is that you lose your identity.”
“You have a great history behind you; you know your customers; when you place orders you know what your clientele likes. Show us, as companies, that even when you sell online you remain consistent with your identity. Your boutiques are beautiful; I would like your websites to be a reflection of your boutiques,” the cashmere entrepreneur concluded.
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Founded more than 60 years ago, Brazzoli has grown from a local manufacturer into an internationally recognized brand. Its headquarters is in Senago, not only the production facility but also the company’s commercial, R&D, post-sales, and technical assistance departments. This integrated structure ensures that innovation and customer support go hand in hand.
For over six decades, Italy’s Brazzoli has set benchmarks in textile dyeing through innovation, precision, and sustainability.
Its advanced machines like Ecologic Plus II and Eco-Aero blend performance with eco-efficiency.
Technologies such as Twin System and the octopus-style collector exemplify its engineering prowess.
Backed by global reach, Brazzoli continues shaping the future of textile machinery.
Brazzoli’s reach extends far beyond Italy, with a network of specialized agencies across the globe trained to support and promote its cutting-edge technologies. This global presence is anchored by a philosophy of continuous dialogue with users, allowing the company to tailor its machines to real-world needs and anticipate future trends.
Innovation in Every Thread
Brazzoli’s product line is a testament to its commitment to sustainability and performance. Machines like the Ecologic Plus II, Eco-Aero, Aquarius, and Ecosynthetic are designed to optimize dyeing processes while minimizing environmental impact. These systems reflect the company’s dedication to eco-conscious engineering—an increasingly vital priority in today’s textile industry.
Looking Ahead
As the textile industry faces new challenges—from sustainability to digital transformation—Brazzoli S.r.l. is poised to lead the charge. With its blend of heritage and forward-thinking design, the company continues to redefine what’s possible in textile machinery.
Brazzoli’s Product Portfolio: Precision Meets Sustainability
Brazzoli S.r.l. has carved out a reputation for producing some of the most advanced textile dyeing machines in the world. Specializing in equipment for fabrics in rope form, the company’s machines are engineered to deliver high performance, energy efficiency, and exceptional dyeing quality.
Flagship Machines
|
Machine |
Key Features |
|---|---|
|
Ecologic Plus II |
High-efficiency dyeing with reduced water and energy consumption. |
|
Eco-Aero |
Airflow dyeing system designed for delicate fabrics and minimal environmental impact. |
|
Aquarius |
Sampling machine ideal for small batches and laboratory testing. |
|
Ecosynthetic |
Tailored for synthetic fibers, offering precision dyeing and low resource usage. |
These machines are not just tools—they’re technological benchmarks. Brazzoli’s commitment to innovation is evident in its integration of automation, digital controls, and eco-friendly processes across its product line.
Twin Technology
One of Brazzoli’s most notable innovations is its Twin Technology, which allows multiple ropes to be dyed simultaneously in the same chamber. This boosts productivity without compromising fabric quality, even for light and body-size materials. The system prevents entanglements and tension, ensuring smooth operation and consistent results.
Innovative Plaiter
J-Box is the part in the machine that fabric stays long time. Fabric stacking makes big difference final quality of fabric. Stacking should be done without tension, relax and avoiding any jam in J-Box. Instead of spinning plaiter system, Brazzoli Eco-Logic Plus-II uses free flow to stack fabric. Every corner of J-Box is filled with fabric without tension. Fabric flows in J-Box smoothly. Result is better shrinkage value and eliminated yarn deformation. Even sensitive viscose fabrics are suitable for Brazzoli Eco-Logic Plus-II.
Effective Rinsing
Good rinsing is important, but water consumption is important too. In order to get good washing result, fabric and water should be contacted effective way. However, to keep fabric in machine during long washing cycles is costly. Because reduces productivity and increases water consumption. Brazzoli Eco-Logic Plus-II has a clever solution. When rinsing cycle arrives, bath is drained down tomin level and fresh water is fed to nozzles directly. Fabric gets in touch with fresh water instead of contaminated water from dyeing bath. Rinsing time and total amount of water are reduced but, on the side, fabric is washed in effective way.
Unique Collector
Water pressure and flow should be equal between chambers. Brazzoli Eco-Logic Plus-II has an octopus style collector instead of a single pipe and many branches, which is used by conventional dyeing machines. Each nozzle on chambers can be fed perfectly equal water flow to eliminate any colour difference between chambers. Conventional dyeing machines has to spend longer dyeing time to reduce difference and increase equalisation, however for Brazzoli Eco-Logic Plus-II, it is not a problem. Always delivers perfect result without any precaution.
Designed for the Future
Brazzoli’s machines are developed in close collaboration with textile producers, ensuring that each product meets real-world demands. Whether it’s reducing cycle times, optimizing chemical usage, or enhancing fabric feel, every detail is engineered for excellence.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (SG)
Published
October 14, 2025
National sports/fashion retailer Footasylum has returned to Glasgow’s Silverburn, becoming the latest addition to the Eurofund Group-operated premier shopping destination.
The retailer is returning with a larger footprint, taking a 9,585 sq ft two-storey unit at the centre.
In the last couple of years Footasylum has been busy expanding its UK retail footprint while also moving into upsized units in key destinations including a triple-the-size unit at West Midland’s Merryhill, Metrocentre Gateshead and Lakeside, Essex, as well as opening flagships on London’s Oxford Street and the Birmingham Bullring
In July, Footasylum released its final FY25 results showing a strong rise in both sales and profit. And it said that the first months of the current trading year had also been ahead of expectations.
For financial year 2024, “record results” included positive revenue growth and a 188% jump in profits.
During 2024, Silverburn also delivered record footfall for the second consecutive year, attracting over 15 million visits and achieving double-digit sales growth. Over three years of joint venture ownership, Henderson Park and Eurofund Group have agreed over 60 deals, significantly enhancing Silverburn’s status as the leading destination in Scotland.
The Footasylum news follows the recent arrival of other fashion brands including Bershka, Hollister, Pull & Bear and Stradivarius. The new store marks the brand’s fourth outlet in Glasgow and adds to its existing portfolio of around 60 stores.
Alberto Esguevillas, CEO UK Retail at Eurofund Group, said of the brand’s return: “Footasylum is a standout success story in the UK retail market, and we see [its] return to Silverburn [as] a welcome and popular new arrival”.
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