Last week, rental brands proved resilient despite rising inflation and costs. Richemont finally removed the costly burden of Yoox Net-a-Porter, paving the way for Farfetch’s continued dominance. Also, while Victoria’s Secret tried to turn bad press into good press, Coty did well in the second half of the year.

Don’t forget to subscribe to my Week in Review episode and fashion industry interviews hosted by Editor-in-Chief Jill Manoff on the Glossy Podcast. Also, check out the Glossy Beauty Podcast to hear a beauty industry interview with executive her editor Priya Rao. – Danny Parisi, Senior Fashion Reporter

Renting is surprisingly fun.

Buried in Urban Outfitters’ earnings this week is the fact that profits are still declining, even as the company is making more money than ever before. A bright spot for the company Nuuly, breaking 100,000 subscribers this quarter.

In fact, Nuuly is doing really well with Urban, with sales up nearly $19 million in the quarter and over $30 million in the last six months.

It may seem counterintuitive that a segment like rentals would thrive at a time when discretionary spending is declining and supply chain costs are rising. It is common to rent when you go out a lot or when you have an event. It’s also the segment where he’s one of the biggest expenses for round-trip transportation of clothes.

But other rental services are also doing well. In June, Rent the Runway beat all guidance, with earnings up 100% year-over-year. Part of this success is due to a subscription model overhaul last year that nearly doubled our profit margins.

Richemont x Farfetch x YNAP

Richemont finally unloaded Yoox Net-a-Porter this week in a complex joint venture with Farfetch. Richemont is happy to write off her YNAP and its losses, but Farfetch is the true winner of the deal.

As part of the deal, all Richemont brands will use Farfetch technology to power their e-commerce. Farfetch has already done the same with other prominent luxury brands such as Chanel and Brunello Cucinelli. As a partial owner of YNAP now (and potentially a full owner in the future), Farfetch has absorbed one of its main rivals and added more profitable e-commerce transactions to its portfolio. Added.

Victoria’s Secret takes criticism positively

Victoria’s Secret hasn’t received the most positive press in recent months. A viral TikTok for singer Jax, dubbed “Victoria’s Secret,” along with Hulu’s documentary on the brand, which delves into the negative impact the brand has on women’s body image and the relationship between its owners, Rex Wexner and Jeffrey Epstein. Song denounces brand influence. about young women.

But according to Martin Waters, CEO of Victoria’s Secret, the brand is taking notice.

“It keeps us in mind all the time. It’s good,” Waters said at a press conference Thursday.

Victoria’s Secret openly reacted to Jax’s song on Instagram, agreeing with what the song was about and trying to absorb criticism rather than deflect it. consistent with the overall rebranding efforts of

But its reaction to the documentary was different.

“It was actually a very low viewership. [and] The series is even less complete,” Waters said. “And the relatively few people who actually made it to the end of the series had a stronger perception that the brand was coming out rather than coming in.”

Coty soars thanks to travel retail

Lipstick effects have never been more literal. Faced with high inflation and rising costs, Coty’s earnings rose 10% last quarter, beating analyst estimates and positioning the beauty company for strong, steady growth in the rest of the year. I was.

Coty’s biggest rivals Estée Lauder and L’Oreal also had strong quarters.

Coty CEO Sue Nabi attributes the company’s growth to strong sales in e-commerce and travel retail.

“I really hope that everyone will recognize that the last eight quarters of results met or exceeded expectations as a major achievement,” Nabi said on Thursday’s earnings call.

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