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DSquared2 duo explain their reasons for ending Staff International license

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The DSquared2 duo of Dean and Dan Caten have taken the unprecedented step of explaining in some detail the reasons for ending their license with Staff International, citing breaches to the contract.

Dean and Dan Caten at the DSquared2 30th anniversary show in Milan. – Courtesy of DSquared2

As reported on Saturday, DSquared2 announced the ending of its 25-year license with Staff International, the key manufacturing arm of Italian fashion billionaire Renzo Rosso, the founder of Diesel. Six hours later, he responded by stating that he would sue DSquared2 for breach of contract.

However, this Thursday morning, Catens released a further statement: “This carefully considered decision, taken with support from Legance law firm, follows several serious contractual breaches by the licensee and reflects the brand’s commitment to protecting its values, heritage, and the excellence that has always defined it.”

“With the termination of the license agreement with Staff International and billionaire Renzo Rosso, DSquared2 leverages its roots to shape the future ahead and enters a new phase of turnaround marked by strategic, creative and operational independence,” the brand continued in a lengthy communiqué.

“We are not simply protecting a business. We are safeguarding our dream — our legacy. And we are doing so honestly, purely, and with the utmost respect for those who walk this journey with us,” the brothers themselves insisted.

“As the business that Dean and Dan Caten created against all odds now enters a new era, the move also enhances the founders’ desire to honor and hone the values of autonomy and authenticity at the heart of DSquared2 February’s 30th-anniversary celebration,” added the statement, which revealed previously unknown details about the Caten twins.

The twins celebrated the 30th-anniversary show in Milan this past season with their latest mammoth theatrical show — the cast marching out of a wrecked brick garage or arriving in a series of mighty wheels. From armored personnel carriers and Ford Mustang convertibles to an all-silver DeLorean and a vintage Rolls Royce, all took turns arriving in the huge warehouse done up like a nightclub.

“Personified by Dean and Dan Caten, DSquared2 is a testament to tenacity. Raised in Canada between foster care and group homes, the brothers overcame an upbringing of mental and physical exploitation at the hands of authorities and guardians. They created DSquared2 as a monument to the self-reliance and fighting spirit that paved the way for the freedom they found through their careers in fashion,” the twins revealed in a statement bearing the headline “DSquared2 Leverages Its Roots to Shape the Future Ahead,” the release read.

It added that bringing production and distribution in-house is a move “caused by the reiterated contractual breaches.”

In the future, the Milan-based house will operate a new strategy. Starting with the Spring-Summer 2026 pre-collection, DSquared2 will oversee production and distribution directly. Supported by dedicated teams, trusted advisors and a solid financial base — an evolution powered by courage, clarity and long-term ambition, the brand insisted.

The statement ended by expressing “heartfelt thanks to those who have upheld the independence and integrity of their life’s work and look forward to building new, constructive partnerships in the future.”

Rosso, a hard-charging self-made man whose empire encompasses stellar brands like Marni, Jil Sander and Maison Margiela, is expected to contest the early ending of the agreement in court.

Expect the mother of all legal battles.

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Nike adds new strategy head to aid company turnaround

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Bloomberg

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April 23, 2025

Nike Inc. has appointed a new top strategy executive as its leadership team tries to turn things around at the world’s largest sportswear company.

Nike

Jennifer Hartley, a 14-year Nike veteran, has been named chief strategy officer and takes a place on Nike’s senior leadership team, according to an internal memo. A representative from Nike confirmed that she’ll start in the role this week.

The move comes as Chief Executive Officer Elliott Hill looks to stage a comeback for Nike, which is coming off a tough year of weak sales. Chief Financial Officer Matt Friend said in the memo that Hartley will work to “develop, drive and deliver Nike’s strategic agenda.”

Nike’s former chief strategy and transformation officer Daniel Heaf departed earlier this year after management decided to eliminate his role, and the teams he oversaw were integrated into the finance department.
 



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L’Oreal Shares Gain After Strong Quarterly Sales For Luxe Unit

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Bloomberg

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April 22, 2025

L’Oreal SA shares gained after the cosmetics company reported resilient sales growth, led by demand for high-end make-up and perfumes.

L’Oréal

The stock rose as much as 2.6% early Tuesday, the first day of trading in Paris after the owner of brands such as Aesop and Kiehl’s published financial results. It’s down about 21% over the past 12 months.

Overall like-for-like sales rose 3.5% in the first quarter, L’Oreal said last week, almost three times as much as analysts had expected. The so-called Luxe division was the strongest among the four units, with sales rising 5.8%.

Luxe saw double-digit growth rates for its fragrance lines, which include names such as Libre by Yves Saint Laurent and Born in Roma by Valentino

The company stuck with a goal to increase sales and profit this year, though the beauty market overall may grow at the lower end of the 4% to 4.5% range the company forecast in February, Chief Executive Officer Nicolas Hieronimus said during a call with analysts. 

In the latest quarter, sales in North America were weaker than estimates, amid soft demand for cheaper make-up, the French company said.

“There were some good and some less good surprises,” Hieronimus said in a statement. The US was “more challenging than anticipated, while China was slightly better than expected.” 

L’Oreal has built up inventory for several labels in the US in response to the threat of tariffs, and could relocate some production to the country, Hieronimus said. The company could also raise prices to offset the impact of the levies, and mostly imports Luxe products to the US, he added.   

The Luxe division showed a sharp improvement from the fourth quarter, when sales at the unit rose just 1%. It also outperformed the perfumes and cosmetics unit at competitor LVMH, which saw organic sales fall 1% during the first quarter. 

Cecile Cabanis, LVMH’s chief financial officer, told analysts last week that the perfumes and cosmetics unit had seen an initial impact from the US tariff announcements toward the end of March.
 



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Asia would welcome trade deals that exclude China

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Bloomberg

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April 22, 2025

In any conflict, you have to recruit allies. Unfortunately for Donald Trump, that’s also true of his trade war. Some of his advisors understand this: Treasury Secretary Scott Bessent intends to use the “90-day pause” he won from the president to round up old friends and encircle China.

Bloomberg

Given that Washington is trusted far less in Asia these days, that might be a big ask for Bessent and his colleagues. But we shouldn’t dismiss the effort out of hand, either. Many countries would be happy to see the current structure of Trump’s tariffs — disproportionately targeted at China — continue indefinitely.

Beijing knows this, and that’s why it has begun its own ally-recruiting effort. President Xi Jinping visited Vietnam, Cambodia and Malaysia last week, and his hosts went out of their way to give him an enthusiastic welcome.

Yet the fact is that resentment of China’s dominance of goods trade and manufacturing supply chains is as potent in much of Asia as it is in the US. Perhaps more potent, since job losses caused by Chinese dumping are an ongoing and severe problem. Indonesia may have lost as many as 80,000 jobs in just the textile sector last year, with more to come.

The real cost to developing countries of China’s trade practices goes even deeper, although it is less visible. It’s possible to count jobs that are being lost, but much harder to count the jobs that aren’t created. After years of trying to pry value chains away from Beijing’s firm grip, policymakers in emerging Asia are worried and angry. They fear the old tools of development — lower wages and industrial incentives — can’t work against a trade superpower determined to pour its resources into maintaining investment-led growth.

Some economies, such as Vietnam, have certainly prospered by integrating more closely with China. But their leaders know that comes at a cost. Nobody views it as the sort of benign relationship that could instead be built with US companies, investors, and markets.

It’s entirely possible to corral such countries into a  coalition meant to disrupt a China-centric trade paradigm. And, yes, differential tariffs — which penalize China more — could well be a part of that effort.

But a few other things will need to be put in place. A big lesson of the past few years is that attitudes to decoupling from China in Asia vary widely. Some countries, India, especially, are eager to isolate Beijing as far as possible, and have gone further than most in the West to control Chinese investment and cut trade links.

Others, such as Indonesia, might be willing to join in any effort to reshape supply chains that gives them a shot at industrialization, but will need an incentive that outweighs the promises and threats that Beijing could deploy. And there are yet others, such as Cambodia, that are perhaps too closely integrated with China now to be reliable partners for the US.

Everyone in Asia already wanted to reduce China’s footprint in the manufacturing sector. Now, as markets in the West close themselves to Chinese goods, producers and policymakers here are terrified that Chinese overcapacity will flood their home markets with cheap imports.

These nations’ incentives aren’t perfectly aligned, however. They are in competition with each other to replace Chinese producers in specific sectors, for example. And some would also want to be the ones who “cheat” any final deal by trans-shipping Chinese goods as much as they can, or through the low-value assembly of goods prepared in factories on the mainland.

Something else will be needed as a glue to hold these diverse interests together. If aid and trade are both off the table, it’s unclear what the US has to offer. Trump thinks access to US consumers is enough of a carrot, but for countries locked in competition with each other and with Beijing, the gains from that trade might appear too uncertain. After all, if they are asked to cut China out of their supply chains, it could raise their costs, perhaps by too much to break into the US market.

A coalition on fairer trade will need boutique strategies designed for each of these countries. Even if Bessent can somehow figure that out, he needs his boss to play along. Any partnership will require Trump’s willingness to haggle on the details, and respects these countries’ autonomy.

Trump has promised to negotiate with “more than 75” countries he says reached out to the US. Any such negotiation will need him to acknowledge that most of his Asian partners aren’t out to defraud the US. Such a change of heart seems unlikely: After Xi’s visit to Vietnam, the president said the meeting’s purpose was “trying to figure out, how do we screw the United States of America?”

America will only benefit from a trade coalition that excludes China, ensures the US’ domestic regulations and higher standards don’t render its producers uncompetitive, and creates new supply chains that include US workers. What Trump actually needs to achieve his ends is an inclusive, equitable, high-quality partnership with allies across the Pacific Ocean. A trans-Pacific partnership, if you will.



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