This article is part of the clothing industrial view for the second quarter of 2025 report.
Report index:
Based on the financial reports published in the second quarter of 2025, a summary of the companies that recorded a decline in sales or profits.
The second quarter of 2025 proved for numerous German fashion and trading companies as a phase of considerable economic loads, characterized by declining sales, shrinking wins and a worrying wave of bankruptcies. In the premium segment, Hugo Boss AG was faced with a decline in sales and profits, which attributed the company to the increasing macroeconomic uncertainty and the weak consumer climate. The development at PUMA SE was even more dramatic, where the profit collapsed by almost 100 percent in the first quarter. It was particularly hard hit by the clothing provider in the middle price segment. Gerry Weber International GmbH and several of its European subsidiaries registered bankruptcy, as did the Hamburg label Closed and the fashion chain. Specialized Omnichannel retailers like Mister Spex were not spared and had to correct their sales forecasts in view of the intensive competition and price pressure. These developments illustrate the profound challenges that the industry faces – from the weak global demand to structural pressure, which himself led to the crisis.
Shaving in the luxury segment and pressure on the middle market lead to declines of sales
The second quarter of 2025 has proven to be challenging for numerous fashion and luxury companies. Many companies reported significant sales declines. The trend reflects a broader market correction, especially in the luxury segment. This fights with a weaker demand in key regions such as Asia and America. At the same time, clothing and shoe brands in the middle market segment are under strong pressure through reserved consumption expenditure and persistent strategic new orientations. The results underline a phase of volatility in which self -established actors are not immune to macroeconomic headwind and changing consumer priorities.
Here is a detailed breakdown of the companies, the sales of which have decreased during this period.
Luxury conglomerates and traditional brands
The upper end of the market experienced a noticeable slowdown. Several large corporations and brands reported negative growth because the boom continued to normalize after pandemic.
- LVMH Moët Hennessy Louis Vuitton: The world’s largest luxury group recorded a decline in sales from four percent to EUR 39.8 billion in the first half of the year. The important area of fashion and leather goods recorded a stronger decline in sales of nine percent in the second quarter.
- Kering SA: The difficulties of the French luxury group continued. The profit fell by 46 percent in the first half of 2025. The reason for this was a significant decline in sales of 27 percent with its most important brand Gucci in the second quarter.
- Capri Holdings Limited: In the first quarter of the 2025/26 financial year, sales from the continued business, which now excludes the upcoming sale of Versace, fell by six percent to $ 797 million. Both Michael Kors and Jimmy Choo recorded declines.
- Salvatore Ferragamo Spa: The Italian luxury house reported a drop in sales of 11.8 percent for the second quarter, which contributed to a decline of 7.1 percent in the first half of 2025 to 474 million euros. The decline was primarily attributed to the weak development in the Asia-Pacific region.
- Ermenegildo Zegna NV: The decline in sales of the Italian group continued in the second quarter. Sales fell by 5.7 percent to 468.9 million euros. In the first half of the year, sales decreased by 3.4 percent, which is due to the weak development in China and a decline in sales of 25.9 percent in the Thom Browne segment.
- Manolo Blahnik: For the 2024 financial year, the luxury shoe brand reported a 19 percent drop in sales compared to the previous year to 86.4 million euros. The company attributed the decline to a strategic shift away from wholesale to its direct sales channels.
- Swatch Group: The turnover of the Swiss watch manufacturer fell by 11.2 percent to three billion Swiss francs in the first half of the year. The net profit collapsed due to the weak consumption expenditure in China and Hong Kong.
Sportwear and shoes
The sports clothing and shoe sector also had to struggle with headwind, some large players reported declines.
- Puma se: The German sports clothing company recorded a drop in sales of 8.3 percent in the second quarter to current exchange rates. This prompted the company to win a profit warning and convert its previous profit forecast into an expected loss for the year.
- Geox Spa: In the first half of 2025, the turnover of the Italian shoe brand fell by 4.7 percent to 305.3 million euros. The weak consumption mood and a decline in demand were mentioned as reasons.
Clothing and accessories in the middle market segment
The middle market segment turned out to be particularly susceptible to economic pressure. Several brands reported sales.
- Aeffe spa: The parent company of Moschino and Alberta Ferretti recorded a decline in group sales by 23.2 percent to 61.7 million euros in the first quarter. This reflects a general slowdown in both wholesale and retail.
- Radley: For the year until April 27, 2024, the British Accessoire brand recorded a decline in total sales by seven percent to £ 72 million. This is mainly due to a decline in the global wholesale business by 30 percent.
- French Connection (MIP Holdings Ltd): The parent company reported a decline in sales to 108 million British pounds for the year until June 30, 2024, although profitability improved.
- Fatface: The British brand’s turnover fell to £ 237.4 million from 267.7 million British pounds in the year 25 January 2025. The company also confirmed the closure of its 23 US branches because it switches to a purely digital model in the region.
- Fenix Outdoor International AG: The group, which includes brands such as Fjällräven and retailers such as Globetrotter, recorded a decline in total sales by 4.2 percent to 146.5 million euros in the second quarter.
Insolvency and restructuring
The difficult market conditions led to several companies initiating bankruptcy proceedings, which indicates a difficult financial emergency.
- Seraphine: The British Calculation Modemark Seraphine went to insolvency administration in July after it was confronted with considerable trade challenges and a weak consumer confidence. It was later by Next PLC. taken over.
- Claire’s: The accessory dealer registered bankruptcy in the USA in August after chapter eleven, for the second time within seven years. The French and British branches also went to the insolvency administration or in bankruptcy proceedings.
- Blanche Copenhagen: The Danish women’s fashion brand announced its upcoming closure in August after filing bankruptcy in June. She justified this with the severe crisis in the global fashion industry.
This article was used with digital tools translated.
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