Daily Links: April 20, 2020

  1. LVMH, L’Oreal Recovery in China Fuels Optimism for Outlook French consumer giants LVMH and L’Oreal SA said a recovery could start soon after the coronavirus caused sales to plunge in the first quarter, as revenue in China is already bouncing back. Read more on Bloomberg
  2. An Inside Job: The $20 Million Counterfeit Bust that Put Hermès’ Own Employees Under the Microscope In the summer of 2011, a brilliantly bright red Birkin bag was being crafted in a workshop in France. Despite lingering economic woes in the United States, following the depths of the Great Recession two years prior, and volatility in the eurozone, the United Kingdom, and China, all of which had “spooked investors and economists, alike,” the demand for Hermès’ most expensive – and recognizable – bags remained unwavering. This particular blood-hued bag was among the tens of millions of dollars’ worth of handbags that were being manufactured in little-known workshops on the outskirts of Paris in order to meet the incessant demand of deep-pocketed devotees. Read more on The Fashion Law
  3. Will the Coronavirus Mean the End of The Red Carpet As We Know It? The coronavirus has put the kibosh on the Cannes Film Festival. A final decision on the Venice Film Festival has been put off until the end of May. The Met Gala is still TBD. And the Emmy Awards, slated for Sept. 20, are in jeopardy, at least in their current form, now that California Gov, Gavin Newsom has said large-scale gatherings are “not in the cards” even after the lockdown is lifted. Read more on WWD
  4. ‘If you’re not profitable, you’re not in business’: How Good American is navigating its first major crisis Emma Grede, founder of denim brand Good American, made clear her feelings on the coronavirus crisis and how it’s affecting retail. “It’s no mystery, it’s a fucking nightmare,” she said. The hit to her business, mostly on the wholesale side — she said the company’s wholesale business has “fallen off the face of the earth” — has been dramatic, with orders canceled at many of its major wholesale partners like Nordstrom, Neiman Marcus and Bloomingdale’s. But luckily, Good American has spent the last two years scaling back on wholesale and focusing mostly on direct-to-consumer sales. Since it’s launch in 2016, the company’s two largest sources of revenue were its own e-commerce site and Nordstrom. Direct-to-consumer makes 50-90% of the business — Grede declined to give an exact split. Read more on GLOSSY

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