Estee Lauder must face a lawsuit accusing the cosmetic giant of defrauding shareholders by concealing its overdependence on improper gray-market sales in China, a federal judge in Manhattan ruled on Monday.
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U.S. District Judge Arun Subramanian said shareholders identified “several misleading omissions” and “half-truths” in Estee disclosures, related to the negative sales impact from a January 2022 government crackdown on the “daigou” gray market.
Shareholders in the proposed class action said Estee became dependent in China on “daigou,” or duty-free purchases by resellers, after the Covid-19 pandemic began, especially in the Hainan province.
They said the New York-based company concealed the truth about how the crackdown was hurting sales until November 1, 2023, causing its shares to plunge 19% and wiping out about $8.7 billion of market value.
“Defendants attributed the decline to everything but the crackdown and reassured investors that an upswing was coming soon,” Subramanian wrote.
“What matters is that Estée Lauder touted the reasons for its success while leaving out the parts of the truth it found inconvenient,” he continued. “The telling of half-truths — that’s what the securities laws don’t tolerate.”
The Estee defendants also include former Chief Executive Fabrizio Freda and former Chief Financial Officer Tracey Travis.
Estee and lawyers for the defendants did not immediately respond to requests for comment. In seeking a dismissal, the defendants said there was neither proof of fraudulent intent, nor a showing that legally actionable false statements caused shareholder losses.
But the judge said Freda and Travis should have been able to pinpoint the “daigou” crackdown as a major cause of falling sales, cited accusations about their attentiveness to sales data and that Estee devoted an entire team to analyze “daigou” sales.
The proposed class action covers shareholders from February 3, 2022 to October 31, 2023. Estee shares have lost nearly half their value since the latter date in part because of China, which accounted for about one-quarter of sales in 2024.
The case is In re Estee Lauder Co Securities Litigation decision, U.S. District Court, Southern District of New York, No. 23-10669.
Returning for a sixth consecutive year, both Westfield London and Westfield Stratford City malls become the capital’s leading destination for the annual London Eid Festival.
Europe’s largest Eid al-Fitr celebration, it’s taking place until 6 April at Westfield London, followed by Westfield Stratford City (11-13 April), with the events expected to draw over 300,000 visitors across both weekends – “rivalling the footfall typically seen on Boxing Day at the centres”, operator Unibail-Rodamco-Westfield said.
Organised by Westfield Rise, its in-house media, brand partnerships, and experiential agency, the events span 4.2 million sq ft across indoor and outdoor event spaces. The festival features a mix of live entertainment, immersive brand activations, food markets, and international retailers from Turkey, Malaysia, Dubai, and beyond.
Westfield Square will host a main entertainment stage, showcasing appearances from community celebrities and VIPs. Inside, visitors can explore over 80 international concession stands across The Atrium at Westfield London and The Arena at Westfield Stratford City, offering everything from modest fashion and boutique gifts to children’s books and homeware.
Melanie Lalou, director of Westfield Rise, Northern Europe, said: “The London Eid Festival is a prime example of how Westfield Rise connects brands with communities through immersive activations. Our event spaces host everything from interactive pop-ups to large-scale cultural celebrations, with live entertainment, vibrant food markets, and striking creative displays across our digital OOH network. This festival highlights the power of experiential engagement, bringing brands and diverse audiences together in a meaningful way.”
Fasahion/lifestyle retail group Matalan has launched a 27-piece collection in collaboration with fashion brand Little Mistress and TV personality Vicky Pattison.
She’s only the latest in a series of reality TV show stars to link up with a retailer on a signature collection. She rose to prominence originally on the Geordie Shore show.
We’re told it’s a collection that brings together “the best of on-trend designs with Matalan’s signature commitment to great quality fashion at affordable prices”.
From dresses and tailored jumpsuits to casual blouses and statement skirts, the collection covers a variety of day-to-night styles, “reflecting Pattison’s personal style”. It comes in “bold hot pink, fiery red, and playful florals”.
With prices starting from just £18 and in sizes from 8-22 the collection is now available in-store and online.
Matalan’s buying director, Laura Wiard said: “The collection reflects the latest trends, while ensuring we stay true to Matalan’s mission of providing stylish fashion at accessible prices.”
Mark Ashton, founder and MD at Little Mistress, added: “We’ve worked hard to create a collection that’s not only fashionable and versatile but also accessible for everyone. It’s all about empowering women to feel their best, no matter the occasion. We’re confident that this collection will resonate with customers and help them express their own unique style.”
The June edition of London Fashion Week has long been less of a draw compared to the main seasonal events during the big international fashion months and the latest move from the British Fashion Council has underlined that — it’s been cancelled.
There’s been no official announcement so far, but a quick look at the LFW website shows no dates for June listed.
The BFC will reportedly instead focus on the London Show Rooms Paris event it runs for UK-based brands from 26 June to 1 July, and menswear will be the key category here.
Caroline Rush, the soon-to-be-ex-CEO of the fashion council told Vogue Business that the showroom event will “generate sales and develop [brands’] relationships with international media outside of a show environment, reinforcing our commitment to providing vital commercial opportunities for British designers”.
The Paris showroom event had itself been on hold since the middle of 2023 but was relaunched last September.
The June edition of LFW has long struggled to gain the traction that the main seasonal events enjoy as a matter of course. Originally launched 13 years ago as London Collections: Men before it rebranded as London Fashion Week Men’s, it rode the crest of the wave of interest in men’s-specific runway shows and attracted the big names of British fashion.
But while it became a co-ed event in 2020, the wider move towards co-ed shows meant labels often chose February or September (or even another city) to show their menswear. The pandemic had an impact too, although the June event remained strong up to and including the 2022 edition before declining in 2023.
The switch to a focus on London Show Rooms Paris means those brands seeking a menswear-friendly format at a time when other menswear labels are being shown internationally have a hopefully-welcoming home in the heart of fashion’s premier city.