The appointment of a new boss does not allay doubts about the real position in which Parisian department store BHV finds itself. Société des Grands Magasins (SGM), the company that now operates BHV, after striking a deal in 2023 with its former owner, the Galeries Lafayette group, has put Karl-Stéphane Cottendin in charge of BHV. Cottendin joined SGM in 2018, and became its COO in 2022. He replaces Emmanuelle Claverie-Veysset, who spent only 16 months at the helm of BHV, as reported by French newspaper Challenges at the weekend.
Karl-Stéphane Cottendin – SGM
Claverie-Veysset was not even mentioned in the statement issued by SGM last Friday evening, in which the group did not deny that 2024 was a complex year.
“2024 was a significant transition year, during which, despite some operational difficulties (extended payment deadlines, lack of information from suppliers, delivery delays, etc.), we were able to start making BHV independent of the Galeries Lafayette [group], its previous owner, and to integrate it within the SGM group,” said SGM in the press release. “In 2025, Karl-Stéphane Cottendin will complete this process, notably by deploying a new purchasing office, a new logistics organisation with a dedicated warehouse, and new IT services. He will also work to run the business even more efficiently, controlling overheads and staff costs,” added SGM. The group intends to divest itself of the building home to BHV’s menswear department in central Paris, but the purchase of the department store’s premises has not been finalised yet. The sale agreement’s expiry date is reportedly set for June.
Keen to reassure stakeholders, SGM mentioned its conversations with the department store’s staff, and underlined the initiatives aimed at revitalising the rue de Rivoli store, as well as the opportunities available and the choice of new CEO.
“After making BHV profitable again in 2024, we needed an executive able to complete the department store’s reorganisation, and especially to give a new dimension to its business, to the benefit of our customers and partners. Karl-Stéphane’s significant work in revitalising, upgrading and restoring profitability at [SGM’s] shopping malls and Galeries Lafayette stores since 2018 (11 shopping malls and seven Galeries Lafayette branches), means that [we] are fully confident he will be up to this challenge, and will ensure the new BHV’s long-term growth,” added SGM.
In this spirit, SGM has promised it will unveil an ambitious plan soon, stating that Cottendin must “deploy a vibrant activation programme that will allow Parisians to enjoy new experiences.” He will also need to make the department store’s assortment more appealing by introducing new services and directional brands, expanding its catering options, optimising the customer journey, and launching a new e-shop.
LVMH, the world’s largest luxury group, reported a 3% drop in first-quarter sales on Monday, missing expectations and confirming a broader sector slowdown as shoppers pulled back on designer fashion amid a volatile economic climate.
LVMH misses Q1 targets as fashion and leather goods weaken. – LVMH
The French company behind high-end labels, including fashion houses Louis Vuitton and Dior, jewelry brand Bulgari, and Hennessy cognac, reported sales of €20.3 billion ($23.08 billion) for the three months ending in March.
The result compares with 1% growth in the fourth quarter and analyst expectations for 2% growth in the first quarter of 2025, according to VisibleAlpha consensus estimates. The fashion and leather goods division—home to Louis Vuitton and Dior and accounting for nearly half of group sales and over three-quarters of operating profit—posted a 5% fall in sales, well below expectations for a flat performance.
LVMH said fashion and leather goods sales saw a “slight decline” in the U.S., while Japan’s quarter was weaker than the comparable quarter a year ago, when Chinese-led growth boosted spending there.
Europe’s luxury players were counting on wealthy Americans to reignite growth for the sector at the start of this year, as the outlook for China, another crucial market, remained bleak.
However, with fears of a U.S. recession rising after President Donald Trump‘s recent tariff announcements sent stock markets and the dollar tumbling, the sector is bracing for what could become its longest slump in years.
The luxury sector, selling prized items to rich shoppers at high margins, is better positioned than other industries to use its pricing power to shield profits against Trump’s tariffs. If fully applied, the tariffs would include a 20% charge on European fashion and leather goods and 31% for Swiss-produced watches. Last week, Trump paused most of his tariffs for 90 days, setting a general 10% duty rate instead.
Portuguese premium sneaker brand JAK makes its UK debut today (14 April), launching exclusively within Selfridges flagship London store to showcase its “timeless footwear designs”.
Having already built “a loyal global following”, this is the first stage of the direct-to-consumer brand’s journey into UK physical retail with one of the country’s biggest names as its first UK partner, as it “takes a bold step into one of the world’s most influential fashion capitals”.
And there will be news of “further expansion in the coming months”, but co-founders Isabel Henriques da Silva and José Maria Reffois are first concentrating on this debut which marks a “major milestone for the brand”.
Bringing its mission (“minimalist aesthetic, superior Portuguese craftsmanship and commitment to sustainable production”) to life, JAK takes its position on the store’s first floor Men’s Footwear Department with the collection also accessible online via the new JAK UK website.
Lisbon-designed and created in its family-owned factories, JAK’s co-founder and creative director da Silva said: “Our commitment to quality, design, and responsible production aligns perfectly with the values of the modern consumer. We can’t wait for UK shoppers to experience JAK’s understated yet luxurious footwear firsthand.”
The difference between fashion’s eco ambitions and actual actions comes to light again with a new report by Good On You revealing “alarming gaps” between the two.
FIEO
The fashion and beauty brands rating platform has released its ‘Fashion Planet Benchmark Report’ in its journal, and the findings are far from glowing.
The comprehensive analysis from more than 5,400 large and small brands exposes shortfalls in emissions tracking, supply chain transparency, and circular design initiatives.
Key findings from the report include large fashion brands scoring just 30% on average for environmental impact measures, while small brands perform better at 46%.
Meanwhile, 88% of brands with emissions targets don’t disclose any progress towards meeting them and despite extensive talk about circularity, only 3% of large brands offer rental schemes and just 13% have resale programmes.
And when it come to large brands investing in research and development for circular innovations, only 6% are doing so.
But on a more positive note, top-performing brands “show that doing better is possible” with the highest score among the sample of large brands being 86% whereas several small brands scored 100%.
“The numbers say it all. Sadly, the industry is far behind where it needs to be to protect the environment and our future,” said Sandra Capponi, co-founder of Good On You.
“Without stronger action and systemic changes, the industry risks losing the trust of consumers, investors, and regulators — all while undermining the resilience of its own supply chains. Fashion simply can’t continue down this path.”