Fashion
Valentino seeks debt relief after luxury slowdown triggers covenant breach
By
Bloomberg
Published
September 26, 2025
Valentino SpA is in talks with creditors after a slowdown in demand for luxury goods led to a decline in its results, resulting in the fashion house breaching the terms of its debt, according to people familiar with the matter.
The Italian company, owned by Qatar’s Mayhoola for Investments and Kering SA, is seeking relief on its covenants after its debt-to-earnings ratio surpassed the threshold set in its credit agreement, said the people, who spoke on the condition of anonymity because the deliberations are private.
Valentino has been hurt by a global luxury downturn, fueled by economic uncertainty and rising tariffs, that has led consumers to curb spending on high-end goods. The design house, known for its Rosso Valentino crimson, first breached its covenants in December, the people said. Still, performance has deteriorated significantly, with a decline in earnings during the first half of 2025.
The bulk of Valentino’s debt is comprised of a €530 million ($619 million) financing provided last year by a pool of banks, including Intesa Sanpaolo SpA, Banca Monte dei Paschi di Siena SpA, Banco BPM SpA, and BNP Paribas SA, according to corporate filings seen by Bloomberg. The contract, signed in July 2024, stipulated that Valentino had to maintain a specified net debt-to-earnings ratio, which was to be tested every six months, according to the documents.
Valentino, Mayhoola, and Kering didn’t respond to requests for comment. Intesa, Banca Monte dei Paschi, and Banco BPM declined to comment, while BNP Paribas didn’t respond.
Falling profit
Gucci owner Kering acquired an initial 30% stake in Valentino in 2023 and extended an option to buy the remaining stake from Mayhoola until 2029 this month.
Kering’s investment was viewed as a means to mitigate its exposure to Gucci, which accounts for the majority of its profits and has struggled in recent years.
However, the design house reported a 2.8% drop in revenue to €1.31 billion in 2024, while Ebitda fell 21% to €248 million, according to a Valentino statement in April. The decline was attributed to a reduction in wholesale revenue and a slowdown in European and Chinese markets.
A report by consulting firm Bain & Co. in June projected a contraction in the sector of between 2% and 5% this year.
Including leasing liabilities, Valentino’s net debt stood at €1.08 billion as of Dec. 31.
Valentino has undergone management and design changes over the past 18 months, with Riccardo Bellini joining as chief executive officer at the start of September.
Fashion
Global businesses eye growth during China’s longest Singles’ Day sale period to date
By
Reuters
Published
November 11, 2025
Black Friday? No. Cyber Monday? Nope. Prime Day? Absolutely not. The world’s biggest shopping event happens in China each year – and is called Singles’ Day.
Originally a holiday to celebrate being single, as a counter to Valentine‘s Day, the event has grown into a weeks-long online shopping festival that this year began on October 9 and runs through November 11 – making it the longest Singles’ Day sales period ever.
The idea for Singles’ Day originated at China’s Nanjing University back in 1993 and was originally called “Bachelor’s Day.” On the day, single people treat themselves with gifts and presents, while also organising social gatherings and parties.
Last year, the total value of goods sold during the shopping bonanza – also known as “Double 11” – totalled 1.44 trillion yuan ($202 billion), according to data provider Syntun. That is almost five times the $41.1 billion US shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
Cyber Monday immediately follows Black Friday, which falls on the day after the US Thanksgiving Day holiday, the busiest shopping day of the year in the US. But growth has been harder to come by for major e-commerce players in China, which have extended their Singles’ Day sales period and leaned heavily on subsidies and coupons to entice spending. Last year’s sales growth rate of 27% was largely attributed to a longer overall festival period.
This year Alibaba Group pledged 50 billion yuan in subsidies for its 88VIP members over the Singles’ Day period. The event has, in recent years, lost some of its novelty with the rise of other shopping festivals in China, including the midyear “618” sales which is the country’s second-largest, and has also lengthened to a weeks-long event.
While Alibaba started “Double 11” in 2009 to win over online shoppers with discounts and promotions, China’s major e-commerce platforms now all take part in it. JD.com joined in 2012 and PDD Holdings-owned Pinduoduo has also become a significant player, offering low-cost products in competition with Alibaba-owned Tmall and Taobao platforms.
Last year, categories covered by a national 150 billion yuan household-appliance-subsidy scheme outperformed. With a higher comparison base this year, those categories are expected to decline. Nomura analysts forecast in October that home appliance sales will fall 20% in the fourth quarter in China. Instant retail – one-hour delivery of online orders – is also a focus this year. Alibaba and JD.com have poured billions into subsidies throughout 2025 to attract shoppers to rapid-delivery channels, which have been growing faster than e-commerce overall.
Many global companies, from apparel maker Nike to cosmetics firm Estee Lauder and consumer goods giant Procter & Gamble, have a big presence on Chinese e-commerce platforms such as Tmall and JD.com. Aggressive discounting has been a hallmark of Chinese shopping festivals since pandemic restrictions ended in China in late 2022, though consumption overall has remained sluggish as people save more in the face of macroeconomic challenges and a prolonged property crisis.
According to Alibaba, 35 brands, including Nike, L’Oreal, and local firms Anta and Proya, sold more than 100 million yuan of merchandise in the first hour of the sale this year. At a press conference a few days into its Singles’ Day sales period, JD.com said it would list over 100,000 “hit” products at its lowest prices of the year and sell 50,000 pairs of thermal Long Johns at 2 yuan each, shipping included.
Phone sales are expected to be strong this year, given recent launches of Apple‘s iPhone 17 series and Xiaomi‘s 17 series in September. Within the first two hours, sales of iPhone on Apple’s Tmall store exceeded the full-day total for the same period last year, according to Alibaba, which did not disclose specific figures.
© Thomson Reuters 2025 All rights reserved.
Fashion
From Seoul to the world: How Korean fashion dominates 2025
K-fashion in 2025 stands as a global movement defined by creativity, inclusivity, and cultural pride.
From gender-fluid tailoring to acubi minimalism and futuristic punk, Korean designers are setting global trends.
With sustainability and tech innovation at its core, Seoul is not just following fashion—it is leading it with confidence and conscience.
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Fashion
Fan Club opens London Designer Outlet pop-up for festive football season
Published
November 11, 2025
Retailer Fan Club is to open a temporary store at Wembley’s London Designer Outlet (LDO) with a short-term lease allowing the football gifting specialist a 773 sq ft space across the festive season.
Created by parent Calendar Club, Fan Club is specialising in “authentic, officially licensed” merchandise from top Premier League and Scottish Premiership clubs, with each team having its own dedicated section. The offer will also include Christmas jumpers, branded footballs, and scarves.
Fan Club said it has grown to operate around 20 seasonal stores located across high streets and shopping centres across the UK and Ireland “far exceeding expectations over an extended two-year trial period”.
This new location at LDO will also be able to take advantage of nearby Wembley Stadium hosting upcoming men’s and women’s England internationals, as well as supporters drawn to stadium and museum tours.
Claire Holmes, retail director at Calendar Club, said: “We thrive on sharing fans’ passion for football and their club and can’t wait to do this in such an iconic location.”
The short-term letting continues LDO’s run of leasing activity, which has seen it add key international brands Gap, New Era, and Columbia to its line-up in recent weeks.
Matt Slade, retail director at operator Quintain, said: “The introduction of Fan Club is a great addition to our line-up during the busy Black Friday and Christmas period. The brand has had huge success across the country over the past couple of years and its wide array of products will really appeal to our unique shopper audience.”
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