While it turns out The Daily was just stirring up smoke with those false Jean Paul Gaultier rumors – he & Hermès look forward to a long and happy life together – the French house still has major problems.
WWD reports their profits have taken a 7% dip in the first half of the year which the house claims is fine, since they plan on evening out their numbers in the second half. While it’s tempting to blame the recession, Bryanboy puts it best when he tweets, “That’s what they get for letting Heidi Montag buy their stuff all the time.”
Meanwhile, on the other end of the retail spectrum, J.Crew’s profits aren’t just staying steady, but actually rising. CEO Mickey Drexler says, “There’s nothing like a good old-fashioned recession to make you run a better business.”
J.Crew’s always been the most-luxury of the high-street brands, which might explain, why, during all of this, they’ve consistently done well. If the woman who buys only designer clothing finally needs to cut back, she’s not going to stop shopping, but she will buy her basics elsewhere. And if she was buying $200 t-shirts, J.Crew’s $88 version is a steal.
Not that they’re perfect (Madewell’s not doing so hot), but they are winning while everyone else is losing.