admin Photo: David Paul Morris/Bloomberg via Getty Images
These are the stories making headlines in fashion on Friday.
Gap Inc. accused of WARN Act violation by employment lawsuit
This spring, Gap cut 1,800 jobs, and now Ian O’Reilly, a terminated employee, filed a class-action lawsuit claiming the company violated the WARN Act when it only gave him 15 days notice of his termination. The WARN Act requires employers of 100 or more to give the affected workers 60 days notice ahead of mass layoffs, Jessica Binns writes for Sourcing Journal. O’Reilly claims that, although he received approval to relocate to Montana during the pandemic while reporting to a headquarters-based manager, he was not notified 60 days in advance of his termination like the in-person workers were in the company’s San Francisco office. {Sourcing Journal/paywalled}
Estée Lauder Companies Inc. reports 10% decrease in 2023 net sales
In the company’s fiscal 2023 results, Estée Lauder Companies Inc. reported net sales of $15.91 billion, a 10% decrease compared to last year’s $17.74 billion. Organic net sales dropped by 6%, partially due to slower sales in Asia. “For fiscal year 2024, we expect to return to organic sales growth and deliver sequentially improving margin throughout the year, leveraging the strong equity and desirability of our brands. We are focused on driving momentum in markets that are thriving and re-accelerating growth in North America,” Fabrizio Freda, president and chief executive officer, said in a press release. {Estée Lauder Companies}
LoveShackFancy to launch fragrance this fall
LoveShackFancy is entering the beauty business this fall, starting with perfumes hat will be available in the brand’s stores, on its website and in Sephora. The ultrafeminine brand features many flowers and frills, and it’s now entering the fragrance and beauty world after 10 years in business. “Fragrance has always been a part of our brand DNA since the very beginning, because flowers are at the heart and soul of everything that I do, and that we do as a company,” LoveShackFancy founder Rebecca Hessel Cohen told WWD. {WWD/paywalled}
Cecilie Bahnsen gears up for a new phase of growth
Danish fashion designer Cecilie Bahnsen will present her eponymous brand’s new collection at Paris Fashion Week. The brand’s revenues are on track to reach $10 million this year as it aims to enter a new phase of growth by “boosting brand awareness, growing direct-to-consumer sales and strengthening its presence in the key U.S. market,” writes Tamison O’Connor. “I don’t want (my clothes) to be too precious. I want it to be something that you put on on a Monday and that you just want to live in and love,” Bahnsen told Business of Fashion. “We talk about ‘everyday couture’ in the company; it has to have this relatability; it needs to feel like it’s part of your life.” {Business of Fashion/paywalled}
Coach owner Tapestry forecasts weak 2024
On Thursday, Coach parent Tapestry forecast fiscal 2024 profit and sales below estimates. The North American market has shown waning demand in the fourth quarter as high inflation and cost of living impacts consumers. Revenues from Tapestry-owned brands Kate Spade and Stuart Weitzman respectively dropped 10% and 13% over the last year while Coach’s sales grew 5% over the quarter. Tapestry said it expects its demand to recover from the “highly profitable region” of China during this fiscal year. {Business of Fashion/paywalled}
Farfetch reports declining revenue
In the second quarter of 2023, Farfetch reported that its revenues fell 1.3% year-on-year to $572 million. Shares also fell 1.75% after market closure on Thursday, Madeleine Schulz wrote for Vogue Business. Farfetch eliminated 11% of its headcount in recent layoffs and its beauty business will shut down this month in cost-saving efforts. The company’s digital platform sector saw growth: GMV and revenue were up 7% and 10%, respectively. “Since our founding, our strategy has been to build Farfetch to become the global platform for luxury by developing a platform with unrivalled technology, logistics and data capabilities. This strategy remains our North Star,” CEO José Neves told Vogue Business. {Vogue Business/paywalled}
Want the latest fashion industry news first? Sign up for our daily newsletter.
