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Milan court to try influencer Chiara Ferragni for fraud over charity claims

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Reuters

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January 29, 2025

Milan prosecutors on Wednesday sent Italian fashion influencer Chiara Ferragni for trial on fraud charges over allegedly misleading charity claims linked to sales of a Christmas cake and Easter eggs, her lawyers and judicial sources said.

Chiara Ferragni – Reuters

The trial was scheduled to begin on September 23 at a court in Milan. For crimes such as fraud, prosecutors can under Italian law directly order a trial without asking a judge for a preliminary hearing.

In a statement, Ferragni, 37, called the accusations “deeply unfair”, adding that she believed “sincerely that it was not necessary to hold a trial to prove that I never cheated anyone”.
A definitive conviction could result in a sentence of between one and five years.

Ferragni, who has nearly 29 million followers on Instagram, was fined almost €1.1 million ($1.14 million) in 2023 by Italy’s competition authority (AGCM) over sales of Ferragni-branded Pandoro Christmas cakes with packaging mentioning a children’s hospital.

She also agreed last year to pay at least €1.2 million to a children’s charity to settle the case concerning sales of Ferragni-branded Easter eggs.

“We remain firmly convinced that this matter has no criminal relevance and that every controversial element has already been addressed and resolved before the AGCM,” her lawyers Giuseppe Iannaccone and Marcello Bana said in the statement.

In the case of the Ferragni-branded Pandoro, the allegation was that consumers had been duped into thinking that by buying those cakes they were contributing to charity for a children’s hospital, the Turin-based Regina Margherita paediatric hospital.

Pandoro is an alternative to the more famous panettone.

In the Easter eggs case, the influencer is charged with misleading buyers into thinking they were supporting the “I Bambini delle Fate” children’s charity.

Ferragni, who was facing a slew of negative publicity and cancelled partnerships with other firms, admitted in December 2023 to “a communications error”, while Italy’s government, in direct response to the controversy, tightened rules on charity giving.

© Thomson Reuters 2025 All rights reserved.



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Fashion

Amazon ramps up ad spending on Elon Musk’s X, WSJ reports

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January 31, 2025

Amazon.com is increasing its advertising on billionaire Elon Musk’s social media platform X, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

Reuters

The major shift comes after the e-commerce giant withdrew much of its advertising from the platform more than a year ago due to concerns over hate speech.

In 2023, Apple also pulled all of its advertising from X and has recently been in discussions about testing ads on the platform, the report said.

Several ad agencies, tech and media companies had also suspended advertising on X following Musk’s endorsement of an antisemitic post that falsely accused members of the Jewish community of inciting hatred against white people.

Monthly U.S. ad revenue at social media platform X has declined by at least 55% year-over-year each month since Musk bought the company, formerly known as Twitter, in October 2022. He had acknowledged that an extended boycott by advertisers could bankrupt X.

Musk has become one of the most influential figures following President Donald Trump‘s re-election. He now leads the Department of Government Efficiency, which aims to cut $2 trillion in government spending.

© Thomson Reuters 2025 All rights reserved.



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Ferragamo’s sales down 4% in fourth quarter, sees “encouraging results”

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January 31, 2025

Italian luxury goods group Salvatore Ferragamo said on Thursday its revenue dropped by 4% at constant currencies in the fourth quarter, flagging “encouraging results” from its direct-to-consumer sales which were overall flat in the last three months of the year.

Ferragamo – Spring-Summer2025 – Womenswear – Italie – Milan – ©Launchmetrics/spotlight

Sales in the North American region, which accounted for 29% of total revenue, were up 6.3% in the quarter.
However, the Asia Pacific area saw a 25% drop in revenue at constant exchange rates.

The slowdown in global demand for luxury goods, especially in China, has made the group’s turnaround harder.
Overall preliminary revenues reached 1.03 billion euros in 2024, in line with analysts’ estimates, according to an LSEG consensus.

“January shows an acceleration in our DTC channel’s growth, albeit supported by the different timing of the Chinese New Year and a favourable comparison base versus last year”, Chief Executive Marco Gobbetti said in a statement.
 

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Spanish beauty group Puig posts 14% rise in holiday sales

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January 31, 2025

Spanish fashion and fragrance company Puig reported a 14.3% rise in fourth-quarter sales on Thursday, beating analyst expectations for the key holiday period.

Charlotte Tilbury

The Barcelona-based company behind perfume brands Rabanne, Carolina Herrera and Jean Paul Gaultier said net sales for the three months to Dec. 31 were 1.36 billion euros ($1.42 billion), above the 1.30 billion euro average forecast from analysts polled by LSEG.

Puig, which generates most of its revenue from fragrance sales, is heavily reliant on the holiday season, with analysts estimating that nearly half of its prestige perfumes are sold in the quarter that includes Black Friday and Christmas.

The company, which also owns luxury skincare and make-up brands Byredo and Charlotte Tilbury, said full-year sales reached 4.79 billion euros ($4.99 billion), up 11% from 2023, surpassing its goal of increasing sales faster than the 6-7% forecast for the global premium beauty market.

The average of analyst estimates was for sales of 4.72 billion euros in 2024, given that it is less exposed to sluggish demand in China and that more than half of Puig’s revenue comes from Europe, the Middle East and Africa while 18% comes from the United States.

The 2024 performance of larger rivals such as Estee Lauder and L’Oreal was hampered by muted demand from China, where a property crisis and high youth unemployment have curbed consumer spending.

Puig said sales in its core fragrance and fashion business grew by 21% in the holiday quarter.

Sales in the make-up division fell 7.2%, with its Charlotte Tilbury brand affected by a voluntary withdrawal of select batches of Airbrush Flawless Setting Spray in December over what Puig described as “an isolated quality issue in a limited number of batches” detected during routine product testing. 

© Thomson Reuters 2025 All rights reserved.



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