Chanel was the overriding headline of the week. While simultaneously beginning its seasonal markdown, Chanel announced 2019 sales of nearly $12.3 billion, up 10% from $11.1 billion in 2018. Chanel, however, warned that 2020 results will be significantly less due to the COVID-19 crisis, which has forced store closures and crushed consumer demand for luxury goods.
Despite the gloomy retail outlook, the value of Hermes reached an all-time high breaking a whopping €80 billion Euros. During the 2008 financial crisis, Hermes and a few other select luxury houses also experienced an inverse correlation with the overall economy.
Analysts speculate that Hermes’s signature Birkin bag is one of the major factors contributing to the label’s resilience. The implication of an imbalanced business strategy stemming from over-reliance on a singular product channel causes some worry among retail observers. So far, it hasn’t been an issue and the launch of beauty products will add another valuable revenue stream/
LVMH announced that revenues dropped 10% to 20% due to COVID, and Kering group, which owns Gucci, shared that sales are down 15% for the first quarter of the year. As a result, Gucci has raised the prices if it’s most popular bag styles including the Dionysus and Zumi between 5% and 9%. These price hikes follow the strategies already implemented by LVMH and Chanel.
Only time will tell if price increases have the desired effect or if customers take their dollars to other industries like travel and home improvement. I happen to think that shoppers find this type of manipulation distasteful and would rather opt for a Viking oven or trip to St. Barths than a new Jumbo Classic.
The good thing is that not all Chanel is increased in price. This week we saw sweeping markdowns on shoes, jewelry, accessories, and clothing. With the help of readers and followers, we were able to crowdsource an incredible catalog of Chanel sale items. You can click through to the post to browse thousands of pictures and to find various sales associate contacts.
This week, Net-A-Porter started its first markdown. Considering the late break some shoppers were a little disappointed by the selection. If you’re looking for more plentiful discounted designer options you can head to the UK version of NAP.
Stuart Weitzman also started its big summer sale. All shoes are now 50% off. This versatile slide is $175 from $350 and classic suede pumps are $199 from $400. The selection is very large and at half-off, there are a lot of very reasonably priced options. You can click over to the original post to see some of my favorites.
We lucked out with Tessabit, which offered MadSpy readers an additional 15% off with the code MADISONAVENUE15N. The extra savings can be applied to anything within this edit. This Valentino shift dress is $750 from $2200 and this Balmain tee is $200. Click here to see more finds.
Over the course of this week, we combed Italist for some deals and also spied online Gucci markdowns. The Gucci discounts have been very good but most haven’t been available online. We are sure they will come soon. It’s just a matter of time.
Looking forward, Dior is the latest designer brand to hit the sale racks. I put a few sale highlights in the jump link. Discounts range from 30% to 50% off at department stores and brand boutiques.
This was a busy week. It’s hard to anticipate the same buzz next week but, at this point, there’s nothing that will surprise me.
Dior: Brian Neiman Marcus (Hudson Yards) 202-733-8528