Milan Fashion Week began with the debut of Autumn/Winter 2025-2026 collections, but the event's excitement is tempered by a concerning decline in the luxury sector, fueled by economic uncertainty and falling sales. Italy's fashion industry, facing these hurdles, is working to restore brand strength, with Gucci at the forefront of the challenge.
Milan Fashion Week kicked off on Tuesday, February, 2, setting the stage for six days of glitz and glamour as the fashion world turns its attention to the Autumn/Winter 2025-2026 collections. However, beneath the dazzling catwalks and the latest fashion trends, the event is underscored by a significant challenge facing the luxury sector, which is grappling with a decline in sales.
The fashion week, which runs through Sunday, highlights the creative brilliance of Italy’s fashion industry, but this year it coincides with troubling economic signals. Industry estimates reveal that sales in Italy's fashion sector fell by 5 percent last year, reflecting a broader global downturn in the luxury market. This slump is being attributed to multiple factors, including a slowdown in demand from China, the world’s largest luxury market, as well as a reduced appetite for high-priced goods amid ongoing global economic uncertainty.
Challenges and Confidence
Among the high-profile names participating in Milan Fashion Week, Gucci opened the festivities, but the brand’s performance has been far from stellar. Once a jewel in the crown of the luxury industry, Gucci has recently become the worst-performing brand in Kering’s portfolio. The French luxury conglomerate, which owns Gucci, reported a striking 23 percent drop in sales for the brand, which represents nearly half of Kering’s total revenue. Despite efforts to turn the tide, Kering's overall sales have not bounced back, and Gucci’s struggles persist.
Adding to the turmoil, Gucci announced earlier this month that Sabato de Sarno would depart as creative director after just two years in the role. In response, the brand's creative team took charge of unveiling its new collection, titled Continuum, a nod to Gucci’s legacy. The collection was a mix of classic and modern elements, blending vintage silhouettes from the 1960s with minimalist touches from the 1990s. The color palette was diverse, ranging from shades of green and gray to mauve and brown. Rather than a traditional designer's bow, the finale saw numerous members of Gucci’s design studio stepping onto the runway, signaling a collective approach to the brand's future.
Francesca Bellettini, deputy CEO of Kering, remarked that a brand is not defined by one individual but by the people behind it. Despite the challenges, Kering's CEO, François-Henri Pinault, expressed confidence in Gucci's recovery, stressing that steps are being taken to strengthen the brand’s long-term appeal.
"Complex Moment"
While Gucci’s struggles have captured attention, the broader luxury sector is facing similar difficulties. Consulting firm Bain & Company estimated that only a third of the world’s luxury brands experienced growth in 2024. A combination of macroeconomic uncertainty and rising prices has led many global consumers to cut back on discretionary spending, which has had a noticeable impact on the industry.
In Italy, the fashion sector—which encompasses not just apparel, but also eyewear, jewelry, and beauty—is projected to generate just under 96 billion euros in revenue for 2024. This represents a decline of 5.3 percent compared to 2023, according to forecasts by the Italian Fashion Chamber. Carlo Capasa, president of the chamber, acknowledged that the sector is navigating a "complex moment," emphasizing that creativity, pragmatism, and flexibility are essential for survival. He added that the fashion industry must innovate and strengthen Italy's supply chain to weather the storm and urged the government to provide "support policies" for the sector.
The Italian leather and footwear industries are facing even more dire conditions, with trade association Confindustria forecasting an 8.1 percent drop in revenue for 2024. In Tuscany, a key hub for Italy’s leather industry, nearly 100,000 workers are on furlough. Despite government efforts to inject 110 million euros into the sector this year, some factories are still on the brink of closure. Swiss brand Bally, set to showcase its collection on Saturday, recently announced the closure of its production facility near Florence, impacting 55 workers, although negotiations with trade unions are ongoing to try to prevent the shutdown.
Major Milestones
Despite these economic challenges, Milan Fashion Week continues to shine a spotlight on both emerging and established brands. Some companies are marking major milestones this year, including Fendi, which celebrates its 100th anniversary with a co-ed runway show led by interim creative director Silvia Venturini Fendi. DSquared is also commemorating its 30th anniversary, while Kway marks 60 years since its founding in Paris in 1965. Other iconic brands such as Prada, Giorgio Armani, Versace, Max Mara, Ferragamo, and Dolce & Gabbana are also on the schedule. However, one notable absence is Bottega Veneta, which postponed its first show under new artistic director Louise Trotter until September.
As Milan’s fashion elite showcase their latest collections, the underlying challenges of the luxury market remain front and center, leaving the industry to find creative ways to adapt and thrive amid uncertainty.
With AFP
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