A Paris court found the former head of France’s domestic security services, Bernard Squarcini, guilty on Friday of using public resources to benefit LVMH, in a trial that shed light on efforts by the world’s biggest luxury group to protect its reputation.
Squarcini, 69, who headed France’s domestic security services from 2008 to 2012, was later hired by LVMH as a security consultant.
The court gave him a two-year prison sentence that he can serve at home with an electronic bracelet and an additional two years suspended, and fined 200,000 euros ($217,300). His lawyers said he would appeal against the verdict.
Part of Friday’s verdict was related to the use of public resources to locate blackmailers targeting LVMH chairman and CEO Bernard Arnault in 2008, while Squarcini was still head of the country’s security services.
That year, security agents staked out a cyber cafe in Aix-en-Provence to identify a suspect sending emails seeking to extort Arnault, as part of a mission Squarcini defended as protecting French economic interests.
Squarcini was also found to be complicit in the illegal surveillance of Francois Ruffin, a French lawmaker who at the time was an activist, along with members of his left-wing publication Fakir. Ruffin and the members of Fakir were planning to disrupt an LVMH shareholder meeting in 2013 and preparing a satirical documentary film “Merci Patron”.
The film, which won the French Cesar award for best documentary in 2017, follows family members who lost their jobs at a supplier to LVMH.
LVMH boss Bernard Arnault told judges in November that he did not know about the illegal surveillance he said was ordered nearly 10 years prior by a close associate who died in 2018. Ruffin’s lawyer, Benjamin Sarfati, welcomed Friday’s verdict.
“We are satisfied with this decision that serves as a call to order, though we regret the absence of Mr Bernard Arnault among defendants,” he said.
LVMH, which reached an agreement in 2021 to pay a 10 million euro settlement to close a criminal probe into its role in the spying case with no admission of guilt, declined to comment.
Quintessentially French label Carven has selected another Briton to be its new design director with Mark Thomas having stepped into the seat left vacant when Louis Trotter left to take the helm at Bottega Veneta in January.
Carven
Thomas, who was trained at Central Saint Martins and Ravensbourne, has been promoted from within by Icicle, the China-based parent company of Carven.
He’s been senior designer at Carven since 2023 and before that spent almost four years in a senior menswear role at another major French label, Lacoste, also working with Trotter.
He’s also been creative director at Helmut Lang, based in New York and was head menswear designer at Joseph in the mid 2010s. Before that he was at Givenchy, and earlier in his career also worked at Neil Barrett and Burberry.
Trotter clearly thought highly of him but it’s interesting that with his strong menswear focus, he’ll be creatively directing a label best known for its womenswear.
It’s one that enjoyed a higher profile under Trotter even though she had only three seasons to reshape it before taking up with coveted Bottega Veneta role.
Despite the absence of a creative chief, Carven showed its AW25 offer, which Thomas has largely been responsible for, in Paris this season. But the first full collection under his direct control will be for SS26 during PFW this autumn.
Carven was founded in 1945 by Marie-Louise Carven-Grog and relaunched by Henri Sebaoun who had bought it in 2008. It enjoyed a high profile under the creative control of Guillaume Henry from 2009 to 2014 but struggled later before its purchase by Icicle. The Chinese firm has invested in it and reopened on its historic address, the Champs-Elysées, in 2021.
Turnover has been growing for the business under CEO Shawna Tao but the latest year for which accounts are available (FY23) saw it with a loss of over €7 million on turnover a little over €15 million.
Gap Inc. soared after strong quarterly sales showed that Chief Executive Officer Richard Dickson’s turnaround playbook is working.
Gap x Cult Gaia
The retailer exceeded analyst estimates for comparable sales, led by better-than-expected results at the namesake brand, Old Navy and Banana Republic. Athleta, the struggling athleisure brand, posted an unexpected decline.
Gap shares surged 17% in trading before US markets opened on Friday. The stock had fallen 18% this year through Thursday’s close.
The performance of Gap’s namesake brand was “particularly impressive,” Paul Lejuez, an analyst for Citi wrote in a research note. The unit’s comparable sales rose 7%, topping Wall Street’s prediction for an average gain of 1.7%. This performance suggests it’s resonating with consumers, he said.
Under Dickson, the company has leaned into celebrity partnerships and is refreshing its leadership roster, including appointing fashion designer Zac Posen as creative director.
Gap sees revenue flat to up slightly in the current quarter. Analysts surveyed by Bloomberg were looking for 1% growth, on average. For the full year, Gap forecasts revenue will be up as much as 2%.
The retailer included 20% tariffs on China and 25% tariffs on Canada and Mexico in its forecast. Less than 10% of Gap products are sourced from China and less than 1% are from Canada and Mexico combined, Dickson said in an interview with Bloomberg News.
“It’s important to note we’ve been operating in a highly dynamic backdrop for the last few years, and we’re expecting the same for 2025,” Dickson said.
Europe’s new tech rule aims to keep digital markets open and is not targeted at U.S. tech giants, EU antitrust and tech chiefs told U.S. congressmen, reminding them that U.S. enforcers have in recent years also cracked down on these companies.
Reuters
The comments by EU antitrust chief Teresa Ribera and EU tech chief Henna Virkkunnen came after U.S. House Judiciary Chair Jim Jordan and Scott Fitzgerald, chairman of the subcommittee on the administrative state, regulatory reform and antitrust demanded clarifications on the Digital Markets Act (DMA).
“The DMA does not target U.S. companies,” Ribera and Virkkunnen wrote in a joint letter dated March 6 to Jordan and Fitzgerald seen by Reuters.
“It applies to all companies which fulfil the clearly defined criteria for being designated as a gatekeeper in the European Union irrespective of where they are headquartered,” they said. Ribera and Virkkunnen also dismissed criticism that the DMA hinders innovation.
“By preventing gatekeepers from engaging in unfair practices vis-à-vis smaller companies, the DMA keeps the door open to the next wave of innovation in vital digital markets,” they said.
They pointed to similar concerns of unfair practices that led to U.S. antitrust investigations and lawsuits filed under the first Trump administration and other recent actions against Alphabet’s Google, Amazon, Apple and Meta Platforms.
Ribera and Virkkunnen also rejected claims that EU antitrust fines are a form of European tax on American companies. U.S. President Donald Trump in a memorandum last month threatened to impose tariffs against countries which impose fines on U.S. companies.
“The objective of DMA enforcement, as in any other piece of EU law, is to ensure compliance – not to issue fines. Possible sanctions, also common to U.S. laws and regulations, are not an end in themselves but a prerequisite for credible engagement,” they said.