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The digital scenario of luxury retail has irrevocably altered with the successful completion of Mytheresa's acquisition of Yoox Net-a-Porter (YNAP) from Richemont. This landmark deal, finalized last month, has led to a new entity, LuxExperience B.V., a pre-eminent multi-brand group ready to dominate the online luxury sphere with combined revenues estimated at approximately €3 billion. Trading under the name ‘LuxExperience’ on the New York Stock Exchange (NYSE) with the ticker symbol ‘Luxe’ effective May 1, 2025, this merger signifies aconsolidation aimed at leveraging the strengths of both platforms.
The rationale behind this ambitious union is addressing key areas for growth and efficiency. Firstly, a major advantage lies in the minimal overlap in their customer bases, reportedly less than 10 per cent. This allows LuxExperience to tap into a broader audience without significant internal competition or cannibalization. Secondly, the geographical footprints of Mytheresa and YNAP are highly complementary. Mytheresa boasts of a strong presence in Europe, while Net-a-Porter and Mr Porter have established a solid foothold in the crucial US market. This synergy provides LuxExperience a truly global reach, capitalizing on regional strengths.
The merger also unlocks substantial cost synergies. Integrating the technology stacks, streamlining warehouse operations, and even consolidating photography processes are expected to yield significant operational efficiencies. This resource optimization will be crucial in a competitive market where profits and agility are paramount.
The immediate impact of this merger is the creation of a formidable player in the online luxury market. As illustrated in table, the combined entity of LuxExperience, alongside Nordstrom, now stands as the largest online luxury retailer based on estimated net annual revenues.
Table: Estimated net online annual revenues of leading global luxury retailers
|
Rank |
Retailer |
Estimated net annual revenue (€bn) |
|
1 |
LuxExperience |
3 |
|
2 |
Nordstrom |
3 |
|
3 |
Saks Fifth Avenue/Saks.com |
2.6 |
|
4 |
Farfetch |
2.2 |
|
5 |
Restofcart |
1.4 |
|
6 |
Ounass |
0.9 |
|
7 |
Breuninger |
0.8 |
|
8 |
Ssense |
0.7 |
|
9 |
Cettire |
0.5 |
|
10 |
Galeries Lafayette |
0.4 |
|
11 |
Alludevavitore |
0.4 |
|
12 |
Celine |
0.4 |
|
13 |
Flannels |
0.4 |
|
14 |
Harrods |
0.2 |
|
15 |
Selfridges |
0.2 |
|
16 |
24S |
0.2 |
|
17 |
Moda Operandi |
0.2 |
|
18 |
Printemps |
0.2 |
|
19 |
Fwrd |
0.2 |
|
20 |
Rinascente |
0.1 |
Source: Company reports, Press research
This dominant position gives LuxExperience a definite leverage in negotiations with brands, enhanced marketing reach, and greater potential for data-driven customer insights.
However, the path to realizing the full potential of this merger is not without challenges. Integrating two distinct corporate cultures, streamlining operations across multiple platforms (Mytheresa, Net-a-Porter, Mr Porter, YOOX, and The Outnet), and maintaining the unique brand identities of each entity will require careful strategic execution. Mytheresa has indicated that the post-acquisition phase will focus on unifying the technology infrastructure and realigning brand assortments. Notably, the off-price division, comprising Yoox and The Outnet, will operate independently from the luxury division to create a more efficient operating model.
Market Outlook and competition
The online luxury market is expected to continue growing, although some analysts predict a potential ‘luxury fatigue’ in the short term due to economic uncertainties and evolving consumer preferences. However, the long-term prediction remains positive, with projections indicating a rise in online luxury sales to a significant portion of the total luxury market by 2025 and beyond. Factors driving growth include the increasing digital savviness of younger generations, the global reach of e-commerce, and the desire for convenience and exclusive online offerings.
LuxExperience enters this evolving landscape as a major force. Its primary competitor, Nordstrom, has also been investing in its online presence and omnichannel capabilities to cater to the quintessential luxury consumer. Other big players, such as Farfetch and the online platforms of traditional retailers like Saks Fifth Avenue and Harrods, will continue to vie for market share. The success of LuxExperience will depend on its ability to effectively integrate its acquired assets, capitalize on synergies, and differentiate its offerings across its various banners to cater to diverse segments of the luxury consumer.
Luxury e-commerce consolidation
While the Mytheresa-YNAP merger is a major development, the luxury sector has seen other notable consolidation efforts. For instance, LVMH's acquisition of Tiffany & Co. in 2021 showed the importance of expanding into high-growth segments like jewelry through mergers and acquisitions. Similarly, the acquisition of Myntra by Flipkart in India highlighted the potential for e-commerce platforms to consolidate and capture burgeoning online markets. These examples underscore the potential for significant value creation through strategic mergers, but also emphasize the importance of careful integration and brand management.
The creation of LuxExperience marks an important moment in the online luxury industry. The combined scale, complementary geographical presence, and potential for cost synergies position the new entity for good growth. However, navigating the complexities of integration and a dynamic market will be crucial. The industry will be closely watching how LuxExperience leverages its newfound power to shape the future of online luxury retail. The ability to maintain brand distinctiveness while capitalizing on shared infrastructure will be a key determinant of its long-term success in this high-stakes environment.
Leena Nair, the Indian-origin Global CEO of Chanel, has been awarded the prestigious Commander of the Order of the British Empire (CBE) for her outstanding contributions to the retail and consumer sector. The honour was presented by Prince William at a special investiture ceremony held at Windsor Castle.
The recognition is part of King Charles III’s New Year’s Honours list for 2025, which acknowledges individuals for distinguished service in the United Kingdom. Nair, who hails from Kolhapur, Maharashtra, became Global CEO of Chanel in January 2022.
Accepting the award, Leena Nair expressed her deep gratitude to her family, mentors, and colleagues at both Unilever and Chanel. She dedicated the recognition to her team at Chanel and said the honour motivates her to continue leading with courage and integrity.
At the ceremony, Nair represented the iconic fashion house wearing a violet Chanel Haute Couture tweed dress coat, sandals by Maison Massaro, and a Maison Michel felt hat.
Since taking the helm at Chanel, she has strengthened the brand’s philanthropic arm, Foundation Chanel, enhancing support for women and girls worldwide.
Wakayama, Japan-based Shima Seiki Mfg Ltd, a global leader in textile technology solutions, will present its innovative APEXFiz design software at the Future Fabrics Expo 2025, held in London on June 24-25 during London Climate Action Week.
Renowned for promoting sustainable material sourcing, the Future Fabrics Expo serves as a hub for eco-conscious innovation in fashion, home, and interior textiles. Shima Seiki’s participation underscores its commitment to driving digital transformation and sustainability within the global textile industry.
At the expo, Shima Seiki will highlight APEXFiz, a subscription-based software that supports the complete creative process from design and planning to realistic fabric simulations and 3D virtual sampling. The platform caters to diverse textile applications including flat and circular knitting, weaving, socks, embroidery, and print. Its standout feature, virtual sampling, offers highly accurate, lifelike digital prototypes that can effectively replace traditional physical samples, significantly cutting down on time, cost, and material waste.
The company will display its virtual sample swatches at both the Curated Textiles Area and the Shima Seiki booth, allowing attendees to experience the realism and expressiveness of digital samples. These swatches aim to inspire not only designers and buyers but also fellow exhibitors seeking to evaluate and present their sustainable fabrics through more eco-friendly and efficient methods.
Through APEXFiz, Shima Seiki is paving the way for smarter sourcing, reduced inventory waste, and a more sustainable fashion ecosystem.
Reducing its earnings losses for the three-month period, US lingerie giant Victoria's Secret & Co surpassed its sales expectations for Q1, FY25.
The Ohio-based company's sales for the quarter ending May 3 totaled $1.353 billion, surpassing its own guidance of $1.30 billion to $1.33 billion. However, this figure remained flat compared to the same period last year, primarily due to a 1 per cent decline in total comparable sales.
Making significant improvements in its financial performance for the quarter, Victoria's Secret reduced its net loss to just $2 million during the quarter as against a net loss of $4 million in the prior-year quarter.
The brand focused on proactively managing the business during the quarter, ensuring it remains nimble and protects investments in customer experience, brand health, and product innovation, says Hillary Super, CEO.
Reaffirming its forecast for the full year, the company projected sales in the range of $6.2 billion to $6.3 billion.
Earlier this month, the underwear company temporarily shut down its website for several days following a security incident related to its information technology systems.
Aptly named, ‘Curiosities, the Fall/Winter 2026/27 collection by Italian yarn expert Monticolor is inspired by Wybderkammer or cabinet of curiosities.
Promising to take knitwear on a tactile and visual adventure, the collection offers a new yarns collection that grants designers not just freedom to express their thoughts but also an opportunity to explore new possibilities, and sophisticated sustainability.
Infused with a rich, exploratory spirit, Monticolor’s new yarns collection focuses on three distinct creative themes: Gothic Novels, Modern Fairytales, and Incredible Creatures. Each of these themes interprets the season’s mood through unique textures, compelling color palettes, and ethically sourced fibers.
The Gothic Novels theme evokes moody contrasts and mysterious elegance. Yarns like Arctic Sense and Nordic Sense exemplify this with their refined blends of OCS-certified organic cotton and cashmere, subtly highlighted by soft mother-of-pearl effects. This dramatic narrative is further enhanced by sequins, lamé brocades, and openwork structures.
The Twinkle Sense theme adds a delicate shimmer to neutral bases, completing the story. The Nordic inspiration continues with Inuit Merino and Polar Merino, both crafted from RWS-certified Extrafine Merino Wool wrapped in organic cotton. These yarns deliver bold color contrasts, three-dimensional textures, and a uniquely light yet warm feel.
In Modern Fairytales, Monticolor reinterprets beloved childhood narratives with a contemporary twist. Nostalgic textures such as bouclé and tweed lend an artisanal elegance. A cashmere-organic cotton blend, Tweed Sense features irregular yarn textures and rich jaspé tones, including denim-inspired blues and heathered grays. This allows designers to explore both whimsical and refined aesthetics.
Finally, bringing the surreal to life, Incredible Creatures merges artificial intelligence with vivid yarn design. The standout Bio Velvety is made from GOTS-certified organic cotton, forming a superfine chenille. This makes it an ideal, plush, and lightweight alternative to traditional velvet for modern knitted garments, offering both comfort and innovation.
Thus Monticolor's latest collection reinforces the company’s position as a forward-thinking yarn house committed to sustainability, superior craftsmanship, and boundless creative expression, perfectly aligning with the evolving needs of knitwear designers worldwide.
To reduce its fixed costs and reinvest in long-term growth, plus-size clothing retailer Torrid plans to close up to 30 per cent of its retail locations this year. This move by the company involves closing down up to 180 of its underperforming stores.
According to Lisa Harper, CEO, the company registers 70 per cent of its total demand from online shopping. Founded in 2001, the brand is known for its direct-to-consumer apparel, intimates, and accessories catering to women's sizes 10 to 30. Over the years, It has grown into a standalone brand with over 600 stores across the United States.
These store closures are a part of Torrid's transition to a more digitally-focused strategy, as per the June 5 report. In Q1, FY25, the retailer’s sales declined by 5 per cent compared to the previous year. Since January, it has already closed two locations, bringing the chain's current store count to 632.
Having debuted its first New York Fashion Week collection in 2017, Torrid is accelerating its transformation to a more digitally led business, which includes optimizing its retail footprint, notes Harper.
In Q1, FY25, Torrid's net sales declined by 4.9 per cent to $266 million from $279 million in Q1, FY24. The company also reported a net loss of $7.3 million, a stark contrast to the $11.8 million profit during the same period in 2024.
The closures are intended to better align its current demand and sales channels, says the Harper report. Despite these planned closures and sales decline, the company reaffirmed its full-year 2025 outlook, anticipating net sales between $1.030 billion and $1.055 billion.
The newly launched portal, Thunaivan’ by Tiruchi Preventive Customs Department and the Apparel Export Promotion Council (AEPC) is designed to help streamline trade for garment exporters in Tiruppur.
Specifically tailored to digitally empower exporters in Tiruppur and enhance the ease of doing business, the portal offers a user-friendly interface to facilitate real-time interaction between Customs and exporters. It features fast-tracked grievance resolution and issue handling mechanisms. This initiative aims to boost transparency and accessibility, fostering a stronger public-private partnership for trade facilitation.
At the launch of this portal, SK Vimalanathan, Chief Commissioner-Customs, Tiruchi, stated, , during their previous visit to Tiruppur, custom officials had announced plans to create an interface addressing exporters’ grievances, and also appoint appropriate officers to review these issues, forward them to the relevant officials for resolution, and monitor their progress.
The data collected and analyzed through the Thunaivan portal will be valuable for policy development, noted Singh
A Sakthivel, Vice-chairman, AEPC, highlighted, Tiruppur's annual garment exports have exceeded Rs 45,000 crore. With an FTA with the UK already in place and a bilateral agreement with the US currently in the works, significant opportunities exist for Tiruppur's garment exporters, he emphasized. However, they need to build capacity and train their workforce, he noted.
The launch event for this portal was also attended by KM Ravichandran, Principal Commissioner- Customs (Preventive), Tiruchi, and K.M. Subramaniam, President, Tiruppur Exporters’ Association.
The All Pakistan Textile Mills Association (APTMA) has commended the Pakistani federal government's decision to impose an 18 per cent sales tax on imported cotton yarn, a move they say creates a level playing field for the local industry.
Kamran Arshad, Chairman, APTMA issued a press statement regarding the federal budget, highlighting that the government has addressed inconsistencies within the Export Facilitation Scheme (EFS). Arshad specifically called for the complete elimination of any remaining loopholes in the EFS.
He explained that previously, imported raw materials were tax-exempt, while local raw materials faced an 18 per cent sales tax. This discrepancy created significant issues in the local and imported value chains under the EFS. Zero percent sales tax on imported raw materials for exports, contrasted with an 18 per cent sales tax on locally purchased raw materials for the same purpose, had severely impacted the weaving sector, Arshad pointed out.
APTMA is advocating for an 18 per cent sales tax to be applied across the entire value chain of yarn and fabrics.
In a push for further protection of the domestic industry, Arshad urged the government to include cotton yarn and fabric in the negative list, which restricts or prohibits their import. The APTMA has also requested a 5 per cent customs duty on yarn and an 11 per cent duty on fabrics.
Arshad noted, local polycotton and polyester have become 35 per cent more expensive. Additionally, APTMA is demanding the abolition of the 18 per cent sales tax on cotton seed and cotton cake.
Hong Kong-based textiles trading firm, Epic Group with manufacturing facilities in Bangladesh, Ethiopia and Jordan, has teamed up with Indian vertical apparel and textile manufacturer, Creative Group to jointly build new state-of-the-art denim and bottoms manufacturing facility in the country.
With a production capacity of 700,000 units per month, this new facility is not only be one of the largest of its kind in India but it also position the country as a key player in the global denim market
The partnership is backed by an initial investment of $15 million, with a vision to achieve $60 million in the coming years. The partners plan to make a long-term impact by creating 3,000 jobs initially, expanding to 10,000 jobs over time.
With a clientele boasting of leading names like Walmart, Levi’s, Uniqlo, Kohl’s, C&A, Epic provides clients with design, sourcing and manufacturing support. It has strategic partnerships with mills across China, India, Pakistan and Bangladesh.
Creative Group offers end to end textile solutions for apparel, home textiles, outdoor, products and yarn. DKNY, Carrefour, US Polo, Calvin Klein, Kenneth Cole, and Zara are among the company’s garment division clients. The company produces over 20 million garments per year.
For years, China reigned supreme as the undisputed king of US apparel imports. While still the largest supplier in aggregate terms, new data reveals a clear shift in sourcing landscape, as American brands strategically diversify their supply chains, seeking flexibility, risk mitigation, and cost control. This is reshaping the global apparel trade, with a host of other nations experiencing good growth in their exports to the US.
China's monthly imports see sharp decline
The latest figures, of US apparel imports year-to-date till April 2025, throws up an interesting pattern. While US apparel imports from China have seen a modest increase of just 1.8 per cent year-to-date, a deeper look into the monthly trends from January 2024 to April 2025 reveals a crucial dynamic.
As the table shows, US apparel imports from China saw a strong increase in mid-2024, peaking around July and August, nearing 1,000 million sq. mt. equivalents (SME). However, a distinct downward trend began in the latter half of 2024, with imports declining through the end of the year. This deceleration has continued into early 2025, with monthly import volumes in March and April 2025 hovering around the 500 SME mark – a sharp drop from their mid-2024 highs. This sustained decline highlights a tangible reduction in reliance on Chinese suppliers on a month-to-month basis.
The rise of alternative sourcing hubs
In stark contrast to China's recent monthly performance, other regions are experiencing significantly more dynamic growth in their apparel exports to the US. The percentage change in US apparel imports from April 2024 to April 2025 underscores this trend.
Countries like Bangladesh and Pakistan are leading the charge with remarkable double-digit increases, reflecting a conscious effort by US brands to expand their sourcing networks. Cambodia and India are also demonstrating strong growth, further highlighting the widespread diversification.
Table: Growth markets for US apparel imports (YTD 4/25 vs. YTD 4/24)
|
Country/Region |
% change (YTD 4/25 vs. YTD 4/24) |
|
Bangladesh |
~29% |
|
Pakistan |
~25% |
|
Cambodia |
~21% |
|
India |
~19% |
|
ASEAN |
~14% |
|
Indonesia |
~13% |
|
Vietnam |
~10% |
|
World |
~8% |
|
China |
1.80% |
|
USMCA |
~0.5% |
|
W. Hemi. |
-3% |
|
CAFTA-DR |
-5.50% |
Source: OTEXA (approximate values derived from attached chart)
ASEAN suppliers, as a collective, are particularly on the move, exhibiting robust double-digit growth. Vietnam, a key player within the region, has seen its apparel exports to the US rise over 10 per cent year-to-date. This collective momentum has propelled ASEAN’s share of US apparel imports to over 27 per cent, steadily eroding China's once overwhelming dominance, which now stands at 35 per cent and continues to drift lower.
Risk management and cost control
This changing scenario is not a sudden phenomenon rather the culmination of a "smart, deliberate pivot" by US brands. The reasons are many: managing geopolitical risks, optimizing costs, and building more resilient and responsive supply chains in an increasingly unpredictable global environment. The lingering effects of tariffs imposed by the Trump administration have also played a role in scrambling the market and encouraging alternative sourcing strategies.
As an analyst explained, "What we're seeing is a fundamental re-evaluation of sourcing strategies. It's no longer just about who's biggest. It's about who's flexible, dependable, and future-ready. And in 2025, that means looking beyond just one partner."
The shift is palpable. While China remains an indispensable component of the global apparel supply chain, its solo reign is clearly over. The burgeoning growth from a diverse array of nations signifies a new era in U.S. apparel imports – one characterized by strategic diversification and a proactive approach to global sourcing. As brands continue to prioritize resilience and adaptability, this trend is only expected to pick up speed, ushering in a more distributed and dynamic future for the apparel industry.
