Last week, layoffs became all the rage, the economic outlook remained bleak, the American designer Tremaine Emory announced a partnership with Dior, and Kanye West sealed his fate. Don’t forget to subscribe to the Glossy Podcast for interviews with fashion industry leaders and episodes of Week in Review, and to the Glossy Beauty Podcast for beauty industry interviews. –Danny Parisi, sr. fashion journalist
This week, H&M announced that it would lay off 1,500 employees, mostly in its home country of Sweden. UK fashion marketplace Lyst was also hit by layoffs this week, along with Amazon two weeks earlier and Gap in September.
Outside of fashion, the layoffs have swept across the media and tech industries. Soaring inflation as well as rising costs for processes such as air transport and freight have put pressure on corporate balance sheets. At a time when profitability is increasingly desirable, fashion companies are looking for every way to cut costs.
Layoffs are expected to continue across the industry over the coming months. Cutting jobs is a quick way to make a balance sheet more favorable in the short term, but it comes with long-term risks. Just look at Twitter, where entire teams with decades of experience between them have been eviscerated, leading many inside and outside the company to speculate that major features will likely start breaking down without employees maintaining them.
While Twitter’s work situation had other extenuating circumstances, the principle remains. More layoffs may be coming, but the short-term gain from cost cutting may be more detrimental in the long run.
The economic outlook for the rest of the year is worrying
In earnings reports last week, a number of fashion brands posted disappointing sales and bleak prospects for the future. Victoria’s Secret, whose results were announced on Wednesday, posted a 9% year-on-year sales decline and a 19% drop in profitability.
On the same day, Farfetch reported a drop in sales for the first time in a quarterly report. Operating losses widened to $218 million in the third quarter, but the company revealed that it plans to cut costs (see the previous section on layoffs for a possible way this could happen). At the same time, the costs keep piling up. Farfetch said it will forge new partnerships with companies like Neiman Marcus, which will cost an additional $170 million to set up.
Target cut its own vacation outlook two weeks ago, as did Urban Outfitters last week.
Tremaine Emory guest designer for Dior
Supreme creative director Tremaine Emory is co-designing a capsule collection for Dior that was unveiled in Cairo on Friday. This does not go through Supreme but through Emory’s brand, Denim Tears. Through Denim Tears, Emory has collaborated with a number of major consumer brands, from Levi’s to Uggs.
Emory was one of the first fashion figures closely associated with Kanye West to publicly condemn his recent actions.
Speaking of Kanye West…
I won’t tie this to what West said most recently during an appearance on Infowars with Alex Jones, but it’s safe to say it’s probably the final nail in the coffin of her fashion career big time. audience. West had already lost his partnerships with Gap and Adidas and the respect of virtually everyone in fashion. His recent comments are so beyond pale that I can’t imagine any way for him to come back.
While Yeezy designs will live on at Adidas, Yeezy’s time in fashion could easily be over for good.