The numbers explain the impatience. Bernstein estimates McQueen's annual sales have collapsed to below 200 million euros from a peak of 800 million in the post-Covid boom years. Kering's shares are down 28 percent since the start of the year despite signs of life at flagship Gucci under new creative director Demna, and rival LVMH reported a five percent fall in fashion label sales in the third quarter on Monday.
De Meo, who arrived last September with a turnaround pedigree from Renault, initially explored selling McQueen before opting for cost cuts, job losses and store closures. "I would like to thank Seán for his contribution and dedication to Alexander McQueen," de Meo said in Kering's official statement. "Our ambition is to establish a bold new direction for the House, building on its unique heritage of exceptional tailoring, uncompromising creativity and rebellion to reaffirm its position as one of the most innovative and culturally relevant voices in luxury." The house said it "will soon announce its new creative leadership." Gianfranco D'Attis, president and CEO of Alexander McQueen, added: "Over the past three years, he has approached the House with great respect for its history while expressing his own vision. His talent and passion have helped us reconnect Alexander McQueen with London, its culture, and its extraordinary creative energy."
McGirr, who succeeded Sarah Burton in 2023 following her 13-year tenure (itself launched after founder Lee McQueen's death in 2010), leaves on a graceful note. "My vision for Alexander McQueen was grounded in the interplay between raw, visceral, human beauty and the precision and rigor at the heart of the House," he said. "I leave with profound gratitude for the dedication of the studio and atelier, and craftspeople." Bernstein luxury analyst Luca Solca diagnosed the structural problem bluntly: "The problem of McQueen is that it had relied on streetwear and sneakers for its growth, while now sneakers and streetwear are yesterday's story. The consensus on the recently ousted McQueen designer was that he wasn't really producing a positive impact." He added: "There is a lot on creative directors' shoulders these days, as brands strive to grow again after a significant reset."
The context is de Meo's three-phase plan, unveiled earlier this year: complete a structural reset by end-2026, rebuild toward sustainable growth by end-2028, and reclaim Kering's position as "the reference player in Next Luxury" by 2030 — supported by 250 store closures over four years, a renovated retail network, and an ambition to double profitability in five years. The H1 2026 numbers show it working, slowly: Q2 revenue rose two percent comparable, Kering's first growth in three years, net debt collapsed from 8 billion to 3.3 billion euros, and the sale of Kering Beauté to L'Oréal closed on March 31 for 4 billion. "All the key levers that are within our control — from brand execution and store optimization to cost discipline and inventory management — are tracking in line with, or ahead of, our expectations," de Meo told investors in July. ## CHINA'S TWO-SPEED MOMENT: GDP BEATS FORECASTS WHILE SECOND-HAND LUXURY EXPLODES
Two data points released days apart sketch the paradox at the heart of the world's most-watched luxury market. First, the macro: China's economy grew 4.5 percent year-on-year in the third quarter, beating the 4.4 percent Reuters poll forecast and accelerating from the 4.3 percent three-year low of Q2. Retail sales rose 1.1 percent in September — the quickest since March — and industrial output expanded 5.5 percent, a six-month high. January-September growth of 4.6 percent sits within the government's 4.5–5.0 percent annual target.
Second, the consumer reality on the ground: Bain & Company data shows mainland China's personal luxury market contracted another three to five percent in 2025 after plunging as much as 19 percent in 2024 — while the country's second-hand luxury market grew 15 to 20 percent in the same year. Domestic consultancy Insight & Info Consulting estimates total pre-owned luxury sales hit 38.4 billion yuan ($5.7 billion) in 2025, and could top 100 billion yuan by 2030. Western brands are feeling both ends of the shift. Louis Vuitton has closed five stores in mainland China in the past two years, including a Shanghai chocolate boutique; Galeries Lafayette shut its Beijing flagship in May. "People used to compare who had spent more," a 24-year-old dance teacher told AFP at Super Zhuanzhuan, a warehouse-style second-hand store in central Shanghai. "But now everyone compares who got a better deal and spent less."
The generational divide is stark. "I just feel that the \[LV] monogram is dated. It suits my mother's generation, but Gen Z would rather buy trendy Korean brands," said shopper Phoebe Ma, 24. Chen Luo, head of China consumer research at Bank of America, frames the shift as a values migration: shoppers are moving away from associating luxury solely with social status and toward "self-identity, distinction, experience, quality, emotional value (and) cultural relevance." His advice to foreign brands: "China's retail landscape is very digital/social media driven, and China's digital ecosystem is also very unique. Foreign brands should work very hard to stay relevant in this context."
Cultural friction compounds the commercial pressure. LVMH successfully sued Chinese beverage chain Molly Tea over a four-petal floral pattern resembling its monogram — then faced an online backlash after internet users and state media noted the motif shares roots with ancient Chinese patterns. LVMH management called its intellectual property "an absolute key asset" but admitted the furore "had a negative impact." Still, Luo cautions against writing China off: "In our view, China will still be an important market, although it may not be a growth engine in two to three years. Luxury spending is normally rebounding in sync with the economy, as usually the wealthy class will be among the first to benefit from economic recovery." ## THE AI SHOPPING REVOLUTION IS RUNNING LATE — AND SUPPLY CHAINS AREN'T READY FOR IT ANYWAY
For all the industry chatter about AI commerce, the consumer isn't there yet. An August 2026 survey by retail logistics business Paxon, conducted via YouGov among more than 2,000 UK adults, found that 62 percent of online shoppers have never used AI product recommendations, and just 3 percent frequently use AI shopping assistants. Forty-three percent have never been recommended a product by AI at all; 21 percent have seen AI suggestions but never bought; only 10 percent say they're likely to use AI to make purchases in the next 12 months. Smart glasses — often framed as the next shopping interface — convince just 16 percent of online shoppers, though that doubles to 37 percent among 18-24 year-olds. Meanwhile the same-day society is raising delivery expectations regardless: 30 percent of shoppers say drones will make waiting more than 24 hours for an online order unacceptable.
Wayne Chapman, CEO of Paxon UK, connects the two trends: "AI shopping is still pretty new, but it's not going away. If it makes it quicker and easier for people to buy, demand is going to become harder to predict. For retailers, it's quite simple. You need to know what's happening and have a fulfilment operation that can react quickly when things change." ## HYÈRES CROWNS A NEW GENERATION — WITH CRAFT AT THE CENTER The 41st Hyères Festival wrapped on October 18 with a sweep of prizes that put material experimentation front and center. Chinese designer Yui Chen won the Fashion Jury Grand Prix with 'Food Cover,' a collection of colorful dresses echoing the domed covers placed over fruit baskets — strongest in black leather and white fabric adorned with oversized bows and ruffles. "I'm a bit surprised," Chen said on stage. "I want to keep creating and bring new things to fashion."
Dieter Vlasich Obermann won the 19M Prize — the award tied to the Chanel-founded crafts institution — for woven straw boots and a focus on craftsmanship and ornament. Rachel Luurssen took the Ateliers des Matières Prize for dresses reviving old-world elegance with a contemporary twist; Xiao Xu won the Supima Prize for menswear spanning semi-transparent latex jumpers to metal-embellished suits; and Spaniard Brais Albor received both the Jury's Special Mention and the People's Choice Award for a wardrobe designed for plus-size customers.
In accessories, Sassa Ann van Wyk's hats won the Grand Prix from a jury led by Cecilie Bahnsen; the public voted Matteo Artuso's leather goods — themed around moments at the table — its favorite. In photography, the new Pull\&Bear Prize went to Xueling Chen's 'Leaving the Garden,' while Julien Rahmani's 'Softball,' on South Asian workers in Saudi Arabia, took the People's Choice — with Rahmani addressing French students protesting in the streets on October 17. ## SELFRIDGES AND DAZED HAND LONDON'S MOST VALUABLE GLASS TO YOUNG CREATIVES
Selfridges and Dazed are democratizing one of retail's most coveted assets: the Oxford Street window. The two have issued an open call inviting "the next generation of changemakers" to take over a Selfridges window for three months between March and June 2027. The call is open to photographers, film directors, graphic designers, painters, sculptors, set designers, hairstylists, make-up artists and fashion designers — individuals or collectives — with applications closing October 23.
Shortlisted artists get a paid pitch fee to present to a jury of industry figures plus Selfridges and Dazed teams; winners receive a creative fee, a production budget, and amplification across Dazed channels. "For the first time, \[we] are handing these legendary spaces over to young artists to build their own universes and depict what it truly means to be a young person today: raw, positive, uplifting and uncompromised," said Selfridges creative director Will Wyness. Dazed editor-in-chief Ted Stansfield added: "For 35 years, \[we have] championed the next generation of creative voices... This open call is a chance to discover some of the most exciting talent out there, giving selected artists a platform to reach new audiences and take their careers to the next level." ##
