The Glossy Podcast: Kering’s Luxury Slump, Louis Vuitton's Price Hikes, and Another Tomorrow’s Push for Circular Fashion

Release Date: April 25, 2025

In this insightful episode of The Glossy Podcast, host Danny Parisi and reporter Zofia Zwinglinska delve into pressing issues affecting the luxury fashion industry. The episode explores the recent financial struggles of Kering, Louis Vuitton’s strategic price hikes, and an in-depth conversation with Vanessa Barboni Halleck, co-founder and CEO of Another Tomorrow, a pioneering brand in sustainable luxury.

1. Kering’s Earnings Slump

Overview: Kering, the powerhouse behind brands like Gucci, has reported troubling earnings, with a significant decline that has sent ripples through the luxury sector.

Key Points:

• Revenue Decline: Kering experienced a 14% overall decline, with Gucci alone down by 25% [02:53].
• Gucci's Struggles: Gucci, contributing to half of Kering’s revenue, is facing an identity crisis following a period without a creative director and the shadow of Alessandro Michele’s leadership [03:41].
• Market Dynamics: The ongoing trade war between the US and China is adversely affecting both key markets for luxury goods, exacerbating Kering’s challenges [05:06].

Notable Quotes:

• Danny Parisi [03:41]: “They’re sort of just in an identity crisis moment. And again, there's such a big part of Kering, if any issues at Gucci, those filter out to the whole group for luxury as a whole.”
• Zofia Zwinglinska [05:53]: “Saint Laurent was down 9%. So it’s not just Gucci where the customer demand isn’t quite as strong.”

Analysis: Kering’s downturn is not isolated to Gucci alone but extends to other brands under its umbrella, such as Saint Laurent, which has also seen a decline. While Bottega Veneta shows resilience with retail growth and strong desirability among younger consumers, the overarching issue remains the economic strain from the US-China trade tensions and internal brand identity crises.

2. Louis Vuitton’s Price Hikes

Overview: Louis Vuitton has announced a price increase, particularly affecting the US market more significantly than others, likely due to tariffs.

Key Points:

• Price Increases: US prices have risen by 5%, while markets like France and Japan saw lesser hikes of 2-3% [07:08].
• Tariff Impact: Approximately one-third of Louis Vuitton goods sold in the US are produced domestically, mitigating some tariff effects, but the remaining two-thirds face at least a 10% tariff [09:02].
• Strategic Shifts: LVMH is contemplating shifting more production to the US, though commitments remain unclear [10:23].

Notable Quotes:

• Danny Parisi [09:02]: “But we’re not sure in terms of long-term growth how well they’re going to be able to do even with the price increases.”
• Zofia Zwinglinska [12:34]: “Customers not willing to travel to the US when prices go up there too, across a range of products, it might make things even less attractive.”

Analysis: Louis Vuitton's strategic price hikes in the US aim to offset tariff impacts but pose challenges in maintaining customer loyalty and market competitiveness. The brand’s consideration to shift production to the US highlights a potential long-term adjustment to navigate the volatile trade environment.

3. The War on Woke: DEI Initiatives Under Scrutiny

Overview: The episode addresses the Trump administration’s aggressive stance against Diversity, Equity, and Inclusion (DEI) initiatives, examining its impact on major corporations.

Key Points:

• Target’s Rollback: Target publicly rolled back DEI initiatives in response to political pressure, resulting in a noticeable decline in foot traffic and revenue over 11 weeks [14:42].
• Levi’s Resistance: Levi’s shareholders overwhelmingly voted against abolishing DEI programs, showcasing resilience against external pressures [18:38].
• Broader Implications: Other companies like Goldman Sachs also resisted similar pressures, indicating a trend of large corporations standing firm on their DEI commitments [18:38].

Notable Quotes:

• Danny Parisi [16:05]: “A company that’s like, we support diversity until we get the slightest amount of pushback, and then we immediately will, like, burn it all.”
• Zofia Zwinglinska [19:30]: “If you don’t end up sitting with your customers and understanding their values, you can again lose them very quickly.”

Analysis: The pushback against DEI initiatives has led to significant repercussions for companies that capitulated, as seen with Target. Conversely, brands like Levi’s that maintained their commitment to diversity have demonstrated that standing by core values can foster long-term customer loyalty and trust.

4. Another Tomorrow’s Push for Circular Fashion

Overview: Zofia Zwinglinska transitions to an exclusive conversation with Vanessa Barboni Halleck, exploring how Another Tomorrow is redefining sustainable luxury through innovative practices and strategic growth.

Key Sections and Insights:

a. Sustainability and Digital Product Passports (DPP)

• Commitment to Traceability: From its inception, Another Tomorrow has prioritized traceability and circular design, incorporating Digital Product Passports for every item [28:10].
• Integration with CRM: These digital IDs enhance customer relationship management and facilitate authenticated resale and size exchange programs, fostering a robust second-hand market [30:06].

Notable Quotes:

• Vanessa Barboni Halleck [28:10]: “Every single item that we’ve ever made has its own completely unique digital ID.”
• Zofia Zwinglinska [30:43]: “Is that something that you can almost turn around into this marketing tool where you can give more information about the garment to your customers?”

b. Physical Retail Expansion

• Soho Flagship Store: Opening a flagship in Soho allows Another Tomorrow to provide tangible experiences, fostering community and meaningful dialogues around sustainability [33:09].
• Design Philosophy: The store features a loom helix structure inspired by circular design principles, emphasizing sustainability in architecture and interior design [37:13].

Notable Quotes:

• Vanessa Barboni Halleck [33:36]: “It's a seat of community for us and we've had many activations that we consider really meaningful.”
• Zofia Zwinglinska [37:13]: “How do you feel that centers the conversation, pulling it back to the brand narrative around farm to fabric?”

c. Sustainable Materials and Innovation

• Myram Capsule: Partnering with NFW, Another Tomorrow introduced Myram, a fully plastic-free leather alternative, underscoring their commitment to environmental impact [45:12].
• Investment in Innovation: The brand emphasizes scalable, ethical production methods and continuous innovation to stay ahead in sustainable practices [46:51].

Notable Quotes:

• Vanessa Barboni Halleck [46:25]: “We don’t use anything where you have to harm or kill the animal. And so it was critical that we did develop some leather alternatives.”
• Zofia Zwinglinska [48:35]: “What are you looking at around those rental models, and why do you think it works for maybe more of a luxury brand rather than someone in the mass range?”

d. Circular Lifecycle and Future Outlook

• Repair and Resale: Emphasizing the importance of repair services and authenticated resale to extend the lifecycle of products, Another Tomorrow seeks to build lasting customer relationships [51:31].
• Vision for the Future: Vanessa envisions a transformed industry with reduced emissions, longer product lifecycles, and robust circular systems, advocating for collaborative efforts across the sector [62:04].

Notable Quotes:

• Vanessa Barboni Halleck [51:31]: “Clothing of course is a much lower price point than that [automotive], but I think it offers clear parallels.”
• Zofia Zwinglinska [62:04]: “What do you hope the fashion industry is actually going to be talking about when it comes to sustainability and what role do you think your brand will play in that?”

Conclusion

This episode of The Glossy Podcast provides a comprehensive look into the current challenges and progressive strides within the luxury fashion industry. From Kering’s financial hurdles and Louis Vuitton’s tactical price adjustments to Another Tomorrow’s innovative approach to sustainable fashion, the discussions underscore the critical balance between economic pressures and ethical commitments. Notably, the conversation with Vanessa Barboni Halleck highlights the transformative potential of circular fashion and the vital role of transparency and community engagement in driving meaningful industry change.

Listeners gain valuable insights into how major brands navigate economic turbulence while striving to uphold sustainability and diversity standards, offering a nuanced perspective on the future landscape of luxury fashion.

Notable Quotes with Timestamps:

• Danny Parisi [03:41]: "They’re sort of just in an identity crisis moment..."
• Zofia Zwinglinska [05:53]: "Saint Laurent was down 9%..."
• Danny Parisi [09:02]: "But we’re not sure in terms of long-term growth..."
• Zofia Zwinglinska [12:34]: "Customers not willing to travel to the US..."
• Zofia Zwinglinska [28:10]: "Every single item that we’ve ever made has its own completely unique digital ID."
• Vanessa Barboni Halleck [33:36]: "It's a seat of community for us..."
• Vanessa Barboni Halleck [46:25]: "We don’t use anything where you have to harm or kill the animal."
• Vanessa Barboni Halleck [51:31]: "Clothing of course is a much lower price point..."
• Zofia Zwinglinska [62:04]: "What do you hope the fashion industry is actually going to be talking about..."

This detailed summary captures the essence of the episode, providing a clear and engaging overview for those who haven't listened while highlighting the critical discussions and insights shared by the hosts and guest.