PARIS — Tourists are losing their appetite for European luxury goods.
According to a research note by Barclays based on the latest figures from Global Blue, which tracks tourism consumption patterns, spending in the sector was down 5.7 percent in July, with watches and jewelry declining most, down 9.3 percent.
Fashion and clothing slipped 6.3 percent, while leather goods and bags fell 2.5 percent, buoyed only by improvements in Chinese spending in the category, up 6.7 percent.
The note highlighted that Chinese tourist consumption in general remained weak, up 4.1 percent, which is a significant slowdown compared to the 17.7 percent rise in the first half. The fact that Chinese visitors are buying fewer luxury goods in Hong Kong does not seem to be redirected towards Europe, Barclays noted, citing the rest of the Asia-Pacific region, the U.S. and Japan as potential beneficiaries.
Spending by Russian tourists, still battered by geopolitical tensions and a devaluation of the ruble, declined less in July, down 5.9 percent versus 13 percent in June.
Barclays calculated that the other nationalities slipped around 11 percent in July versus a flat figure in the previous month, which may reflect an earlier start to the Ramadan season.
The data comes on the heels of muted sales figures reported by big luxury players in Europe. At French luxury group Kering, which includes Gucci, Saint Laurent and Bottega Veneta, second-quarter sales rose 1.8 percent, dented by sluggish demand in China and Russia along with continuing currency headwinds.
LVMH Moët Hennessy Louis Vuitton, home to Givenchy, Tag Heuer and Bulgari among others, reported that its second-quarter revenues rose 1.3 percent.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion