Apparel companies reporting sales and profit drops in Q2 2025
This article is part of the Q2 2025 apparel industry report.
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Based on the financial reports published in the second quarter of 2025, a summary of the companies that reported a decline in sales or profit.
Luxury slowdown and mid-market pressures fuel sales declines
The second quarter of 2025 has revealed a challenging landscape for numerous fashion and luxury companies, with many reporting significant sales declines. The trend reflects a broader market correction, particularly within the luxury segment, which is grappling with softer demand in key regions like Asia and the Americas. Concurrently, mid-market apparel and footwear brands are facing intense pressure from cautious consumer spending and ongoing strategic realignments. The results underscore a period of volatility where even established players are not immune to macroeconomic headwinds and shifting consumer priorities.
Here is a detailed breakdown of the companies that saw their revenues contract during the period.
Luxury conglomerates and heritage brands
The high-end of the market experienced a notable slowdown, with several major groups and brands reporting negative growth as the post-pandemic boom continued to normalise.
- LVMH Moët Hennessy Louis Vuitton: The world’s largest luxury group reported a four% decline in revenue for the first half of the year, falling to 39.8 billion euros. The crucial fashion and leather goods division saw a more pronounced nine% sales drop in the second quarter.
- Kering S.A.: The French luxury group’s struggles continued, with a 46% drop in profits for the first half of 2025, driven by a significant 27% revenue decline at its flagship brand, Gucci, in the second quarter.
- Capri Holdings Limited: In the first quarter of fiscal 2025/26, revenue from continuing operations, which now excludes the pending sale Versace, decreased by six% to 797 million dollars, with both Michael Kors and Jimmy Choo experiencing declines.
- Salvatore Ferragamo S.p.A.: The Italian luxury house reported an 11.8% drop in second-quarter revenue, contributing to a 7.1% decline for the first half of 2025, with sales totalling 474 million euros. The downturn was primarily attributed to weak performance in the Asia-Pacific region.
- Ermenegildo Zegna N.V.: The Italian group’s sales decline continued into the second quarter, with revenue falling 5.7% to 468.9 million euros. For the first half, sales were down 3.4 percent, impacted by weakness in China and a 25.9% revenue slide in its Thom Browne segment.
- Manolo Blahnik: For the fiscal year 2024, the luxury footwear brand reported a 19% year-on-year drop in revenues to 86.4 million euros. The company attributed the decline to a strategic shift away from wholesale to focus on its direct-to-consumer channels.
- Swatch Group: The Swiss watchmaker’s turnover for the first half of the year fell by 11.2% to three billion Swiss francs, with net profit plummeting due to weak consumer spending in China and Hong Kong.
Sportswear and footwear
The sportswear and footwear sectors also faced headwinds, with some major players reporting downturns.
- Puma SE: The German sportswear company reported an 8.3% drop in sales at current exchange rates in the second quarter, prompting it to issue a profit warning and convert its previous profit forecast into an expected loss for the year.
- Geox S.p.A.: In the first half of 2025, the Italian footwear brand saw its revenue decrease by 4.7% to 305.3 million euros, citing weak consumer sentiment and a contraction in demand.
Mid-market apparel and accessories
The mid-market segment proved particularly vulnerable to economic pressures, with several brands reporting sales contractions.
- Aeffe S.p.A.: The parent company of Moschino and Alberta Ferretti reported a 23.2% decrease in consolidated revenues to 61.7 million euros for the first quarter, reflecting a general slowdown across both wholesale and retail channels.
- Radley: For the year ending April 27, 2024, the British accessories brand saw its total sales fall seven% to 72 million pounds, largely driven by a 30% decrease in its global wholesale business.
- French Connection (MIP Holdings Ltd): The parent company reported a decrease in turnover to 108 million pounds for the year ended June 30, 2024, though profitability improved.
- FatFace: The British brand’s revenue for the year to January 25, 2025, dropped to 237.4 million pounds from a prior 267.7 million pounds. The company also confirmed the closure of its 23 US stores as it pivots to a digital-only model in the region.
- Fenix Outdoor International AG: The group, which owns brands like Fjällräven and retailers like Globetrotter, saw its total revenue for the second quarter decrease by 4.2% to 146.5 million euros.
Insolvencies and restructuring
The challenging market conditions led to several companies entering insolvency proceedings, signalling severe financial distress.
- Seraphine: The British maternity brand collapsed into administration in July after facing significant trading challenges and fragile consumer confidence. It was later acquired by Next Plc.
- Claire's: The accessories retailer filed for Chapter 11 bankruptcy protection in the US in August, its second in seven years. Its French and UK arms also entered administration and receivership proceedings, respectively.
- Blanche Copenhagen: The Danish womenswear brand announced its impending closure in August after filing for insolvency in June, citing the severe crisis in the global fashion industry.
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