Companies reporting sales and profit drops in Q3 2025
The third quarter of 2025 exposed deep fissures within the global fashion industry, characterized by a marked contraction in the luxury sector and ongoing volatility for mid-market retailers. A combination of cooling demand in China, a pullback by aspirational consumers in the US, and the disruptive impact of new trade tariffs created a challenging environment. Heavyweights like LVMH and Kering reported rare sales declines, signalling the end of the post-pandemic luxury boom. Meanwhile, brands undergoing restructuring, such as Allbirds and Asos, continued to shed revenue as they prioritized long-term profitability over immediate volume, highlighting the intense pressure to adapt in a cost-conscious market.
Companies Reporting Sales Declines
Luxury & Premium
- Kering: Q3 revenue dropped 10 percent to 3.4 billion euros, a decline less severe than in previous quarters.
- LVMH: Q3 revenue declined by 4 percent to 18.3 billion euros, with the key Fashion & Leather Goods division contracting by 5 percent organically.
- Salvatore Ferragamo: H1 revenue decreased by 9.4 percent to 474 million euros, impacted by weakness in the wholesale channel and Asia Pacific.
- Capri Holdings: Q2 revenue fell 2.5 percent to 856 million dollars, with declines across Michael Kors and Jimmy Choo.
- Zegna Group: H1 revenue dipped 3.4 percent, with Q2 revenue down 5.7 percent. The Thom Browne segment saw a significant 25.9 percent drop.
- Lanvin Group: H1 revenue fell 22 percent to 133 million euros, citing a slowdown in Greater China and wholesale demand.
- Armani Group: FY 2024 net revenues decreased by 5 percent to 2.3 billion euros.
- Mulberry: FY25 revenue dropped 21 percent to 120.4 million pounds, with further declines noted in early FY26 trading.
- Swatch Group: H1 sales fell 11.2 percent to 3 billion Swiss francs due to weak consumer spending in China.
- Manolo Blahnik: 2024 revenue dropped 19 percent to 86.4 million euros as the brand shifted focus to direct-to-consumer channels.
Sportswear & Footwear
- Allbirds: Q3 net revenue plummeted 23.3 percent to 33 million dollars.
- VF Corporation: While overall Q1 revenue was flat, the Vans brand reported a 14 percent decline.
- Puma: Q3 reported sales declined 10.4 percent.
- Under Armour: Q1 revenue fell 4 percent, and Q2 revenue decreased by 4.7 percent to 1.33 billion dollars.
- Fenix Outdoor: Q2 revenue decreased 4.2 percent to 146.5 million euros.
High Street, Retailers & Mid-Market
- Target: Q3 net sales declined 1.5 percent to 25.3 billion dollars.
- Kohl’s: Q3 net sales fell 2.8 percent to 3.4 billion dollars; Q2 sales were down 5.1 percent.
- Asos: FY25 adjusted revenue declined 14 percent to 2.5 billion pounds.
- Saks Global: Q2 revenue dropped 11.1 percent to 1.6 billion dollars.
- Hugo Boss: Q3 sales fell 4 percent to 989 million euros, driven by weak demand in China.
- Esprit: Revenue from continuing operations dropped 16 percent, with the company ceasing many global operations.
- Tilly’s: Q2 net sales decreased 7.1 percent to 151.3 million dollars.
- Shoe Carnival: Q2 net sales declined 7.9 percent, though Q3 saw a rebound.
- Destination XL Group: Q2 sales declined 7.5 percent to 115.5 million dollars.
- G-III Apparel Group: Q2 net sales decreased 5 percent to 613.3 million dollars.
- Vera Bradley: Q2 revenues dropped significantly to 70.9 million dollars from 94 million dollars a year prior.
- Caleres: Q2 net sales declined 3.6 percent to 658.5 million dollars.
- Torrid: Q2 net sales decreased 7.7 percent to 262.8 million dollars.
- Vince Holding: Q2 net sales decreased 1.3 percent to 73.2 million dollars.
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