Breaking down the Tariff Playbook — plus the latest news on Richemont, Chanel and Mytheresa
On the Glossy Podcast, senior fashion reporter Danny Parisi and international reporter Zofia Zwieglinska break down some of the biggest fashion news of the week.
This week, we discuss the state of the luxury business through the lens of three major luxury companies that reported earnings this week.
Richemont’s reliance on jewelry has put the company in a good position as the jewelry sector, despite headwinds, has managed to stay afloat. Meanwhile, Mytheresa, having completed its acquisition of Yoox Net-a-Porter, now has a much larger portfolio of retail companies to manage. So far, the company has been handling it well — CEO Michael Kliger said Mytheresa’s positive earnings results made it an outlier in luxury.
On the flipside, Chanel has seen a downturn for the first time in a long time. Chanel has over 38,000 employees, 10,000 of whom were hired in the last three years alone. But with profits plummeting 30% last year, Chanel has had layoffs and now a hiring freeze reflecting its slumping sales.
Later in the episode, we lay out the tariff playbook, a collection of strategies and methods we’ve heard from fashion brands about how they’re navigating tariff volatility.
We lumped these strategies into three broad categories: raising prices, altering the supply chain, and shifting focus to other markets outside of the U.S. We’ve heard from dozens of brands about all the ways they’re approaching these three tactics, including sharing cost increases with manufacturers, using bonded storage to avoid paying harsh duties, lowering SKU counts, moving production to new countries and pausing U.S. orders.
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