Analysts at UK bank Barclays think the split between Gucci and creative director Sabato De Sarno was “surprising, since the designer only joined the company in 2023,” and that his departure will cause “further disruption and uncertainty at Gucci in the short term,” also because the products designed by De Sarno were still being launched in-store in H2 2024. Hence there is greater risk for the label’s fiscal 2025 profitability.
De Sarno’s departure “could be seen as a small positive for the brand, since a potential new creative director might have a better chance of relaunching the label.” De Sarno’s designs “failed to reignite brand momentum during his short time at Gucci,” said Barclays, mentioning that the Italian designer joined Gucci in January 2023 to replace long-established creative director Alessandro Michele, “whose bold, eccentric aesthetic positively shook up the market and led Gucci to significantly overperform in the 2016-2020 period.”
After De Sarno’s arrival, “[Gucci’s] performance has remained weak so far. 2024 was a very tough year for the label, and we’re forecasting organic growth at 21% and EBIT margin at 20.7%, compared to 33.1% the year before,” concluded Barclays.
Dr Martens wants its customers to “Feel the Buzz” with the footwear brand’s first statement launch of the year. Statement? The introduction of the Buzz shoe reflects “a big shift in women’s footwear trends being heavily rooted in the 90’s and nostalgiaI,” notes the brand’s footwear designer Bridie Husband.
Inspired by its own 90’s archive, the shoe is “bold, bouncy and barrel-edged, with bubble branding to boot”.
The five-eye lace-up shoe “blend[s] classic DM accents with a chunky, comfortable sole and vibrant upper”, to provide the wearer with a fresh footwear alternative for spring.
It comes with a statement leaf pattern on an undersole also marked with the brand’s signature grooving pattern while stretched with contours that echo the curvature of the sole tagged with rubberised bubble brand patches. It’s also fitted with padded ankle collars for extra cushioning alongside the trademark DM’s bouncing sole construction secured with yellow welt stitching.
Husband added: ’‘The Buzz has a sporty, streetwear aesthetic that our wearers haven’t seen from us in recent seasons.”
And that “big shift” in women’s footwear trends means it was “the perfect time to bring back elements of such a sought-after archive shoe. There’s a sense of physical elevation and confidence that comes with a big platform sole and we’ve added padding for extra comfort, so we’re really excited to see how [customers] will react to the new style and make it their own,” she added.
The collection is available now in a variety of statement colours, patterns, and materials, including textured Hair On leather with a leopard print, soL Grizzly and Milled Nappa leather, and durable EH Suede.
Stuart Trevor will be the headline designer for Source Fashion, the upcoming Olympia London sourcing show (18-20 February). The founder of the AllSaints label, Trevor will be showcasing bespoke designs from his signature collection on the Source Catwalk.
After five years mentoring start-up brands “with a positive social and environmental impact”, he launched his Stuart Trevor label in 2023 “to incredible acclaim”.
A sustainable brand founded on the question ‘What about a clothing brand that doesn’t produce any clothing?’, he set out “to create the world’s most sustainable brand with a mission to make buying sustainable products easier and more fun and create non-destructive clothing from other peoples’ waste”.
Trevor said: “It’s a critical moment for our collective future – we should have done it years ago, but given we can’t turn back the clocks, now is the time to act. There are too many clothes that already exist, and too many clothes still being produced – continuing on this trajectory just doesn’t make sense, for the industry or for the planet. Creativity to me has always been about doing more with what we have already – which is exactly the basis of Stuart Trevor.
“The synergy between our brand and Source Fashion was a no-brainer, I’m excited to showcase some of our designs on the Source catwalk and show what fashion can produce with the tonnes of stock that’s already in circulation.”
Trevor’s designs will headline the Source Catwalk show, which will also present the latest womenswear edit “brought to life to show visitors how to build looks and ranges”.
Visitors will also be able to hear from Trevor on Wednesday 19 February at 1.30pm during a ‘fireside chat’ presentation.
Puma SE is shipping far fewer Chinese-made sneakers to the US as the trade war between the countries heats up.
Puma
The German sportswear brand is sourcing only about 10% of its US shoe imports from China now, down from 30% in the past, Chief Executive Officer Arne Freundt said in an interview. Puma is increasingly relying on suppliers in places such as Vietnam and Indonesia for the US market, he said.
The change is one of several that Puma ushered in since Donald Trump’s victory in the US presidential election in November roiled an already volatile sportswear industry. Tensions between the world’s two largest economies have escalated, with Trump slapping 10% tariffs on China and Beijing responding with its own levies and export restrictions.
Agility has become essential to navigate the uncertain trade landscape and its knock-on effects on consumer behavior, the Puma chief said. This week, he held a staff meeting to dig into consumer sentiment in the US, to discuss how rivals are responding and make sure Puma’s product sourcing teams are receiving information directly from staff on the ground.
“You need to be very close to things which are happening, and have a constant information flow, and reflect if your plans are still accurate under that environment or if you need to change things,” said the CEO.
Upbeat Forecasts
Puma is benefiting from its strategy of sourcing goods from multiple countries, Freundt said. “Other competitors may not be able to react that fast. It might lead to certain price increases.”
Even so, Puma has faced setbacks in recent months. On the day after Trump’s election in early November, it reported upbeat third-quarter results and Freundt affirmed his financial forecast for 2024. In hindsight, that was a mistake, he said.
Puma had seen strong demand in October for all sorts of products, including the soccer-inspired Palermo sneakers and Suede XL skater shoes, Freundt said. As November progressed, however, consumer demand slowed, especially in China and Latin America, where the company was already dealing with warehouse constraints.
As a result, Puma shocked investors in January when it reported preliminary fourth-quarter results that missed estimates and full-year net income that was shy of Freundt’s forecast. The company also pushed back a key profitability target by two years. Shares fell by the most in more than two decades.
It didn’t help that cross-town rival Adidas AG had reported better-than-expected results the day before, citing strong momentum across all regions and divisions.
Nor was it the first time that Freundt had surprised investors with bad news. In July 2023, he had suggested that if business continued to develop favorably Puma might raise its forecast for the year — but then it didn’t do so, angering some investors.
The 45-year-old took over as CEO in November 2022 after serving as Puma’s chief commercial officer. He has worked for the company since 2011, overseeing strategy, retail and e-commerce channels as well as the Europe, Middle East and Africa division.
Since taking the top job, Freundt has tried to give a “very realistic” financial outlook, he said. But given how volatile the industry is, he intends to alter his approach. “For me, the message is loud and clear: we need to be more cautious on communicating our expectations,” he said.
Brand Elevation
Puma announced a cost-cutting program last month that’s designed, in part, to counteract the expected drag on earnings from a stronger US dollar once its currency hedges expire in 2026.
While Puma isn’t looking to reduce headcount, Freundt sees potential for streamlining in some areas — such as material procurement or IT and logistics. “We are a growth company, but we want to grow more efficiently going forward,” he said.
Freundt insists that Puma’s new effort to elevate the brand is working. Until recently, the focus was on maximizing sales growth, even if much of that progress came from selling relatively cheap shoes and apparel. Now, Puma wants to increase its presence in higher-end channels for sports and lifestyle products, such as sneakers that sell for more than $100 a pair and help build hype.
Puma has made progress in the past year, especially with products selling at hip streetwear stores such as Kith and End., Freundt said. The company has been building buzz around the Speedcat, a thin-soled sneaker that originally debuted in 1999 and has recently appeared on the feet of celebrities like actor Jennifer Lawrence.
While Freundt may become more cautious on his financial forecasts, the CEO appears as optimistic as ever about the prospects for the Speedcat after Puma began ratcheting up supplies in preparation for a marketing blitz around the product. This approach to managing a product cycle will help Puma usher in its next era of profitable growth, the CEO said.
“What we have done the last 12 to 18 months is really to build up a new silhouette, a new trend,” Freundt said. “We are very confident that this can be one of the hottest shoes in the summer.”
Entertainment8 years ago