Lululemon's CEO Search Remains Deadlocked | Second Aunt Looks at Fashion

What are the performance factors behind the AI · Lululemon CEO selection deadlock?

21st Century Business Herald Reporter Gao Jianghong Intern Zhang Heyun

Over the past week, the global fashion retail industry has been active, showing a diverse pattern of leadership changes for transformation, performance differentiation for breakthroughs, compliance and mergers & acquisitions intertwined, and high-end business innovation. Luxury brands are adjusting their core management teams one after another; Armani is filling supply chain veteran roles to stabilize governance; Zimmermann is speeding up globalization by bringing in Moncler senior executives; Michael Kors is recruiting cross-industry tech talent to boost data marketing. On the performance front, Zegna is secretly profitable against the trend, Kering is betting on the jewelry sector to break the downturn in core businesses, while Lululemon is caught in a dual deadlock of slowing growth and CEO hiring.

Hyatt Group is opening its second Andaz in Shanghai; Tiffany’s new flagship store has settled in Beijing; Tomorrow Group is pursuing digital transformation; Shein won a lawsuit in France but still faces compliance hurdles in Europe; the US retail market is expected to grow strongly; Four Seasons is expanding into luxury yachts, capturing a new high-end experience consumption trend. Overall, the industry is accelerating structural adjustments and differentiation amid challenges.

1. Zegna Group’s net profit to surge 20% by 2025

On March 20, Italian luxury menswear group Ermenegildo Zegna announced its full-year 2025 results, with net profit soaring 20% year-on-year to €109.5 million, achieving profit against the trend. Group Chairman Gildo Zegna stated clearly that despite industry challenges, the group will maintain its expansion plans and strategic investments, with ambitions for 2026 unchanged.

The financial report shows the group achieved €1.91 billion in sales, with organic growth of 1.1%. At current exchange rates, sales declined 1.5% mainly due to currency fluctuations. Gross profit reached €1.3 billion, with a gross margin of 67.5%, up 90 basis points from 2024, indicating continuous improvement in profitability. Adjusted operating profit was €163 million, down from €184 million in 2024, mainly due to a €10 million bad debt provision related to Saks Global’s bankruptcy; excluding this, operating profit met market expectations.

Looking at brands, core brand Zegna performed steadily, with full-year revenue of €118 million, up 1.5%, with organic growth of 4.7%, driven mainly by direct channels. Tom Ford’s fashion business revenue was €317.1 million, up 0.8% at current rates, with 3.1% organic growth; new design team works gained recognition. Thom Browne’s revenue was €268.5 million, down 14.7% YoY, with a 12.2% organic decline; the group is reversing the trend by streamlining wholesale, increasing DTC, and launching collaborations.

Despite geopolitical disruptions, the Middle East remains a key market with resilient high-end consumers. The 2027 target remains unchanged, with plans to open new Zegna and Tom Ford stores in Abu Dhabi by year-end.

Comment: Profitability against the trend seems more like a digital game; revenue pressure and sub-brand declines cast doubt on sustainable growth.

2. Andaz opens a top hotel in Shanghai

On March 21, Andaz Hotel in Xujiahui Center, Shanghai, officially opened. Located in the historic Xujiahui area, it is part of Sun Hung Kai Properties’ new large-scale complex — Shanghai Xujiahui Center ITC.

As a distinctive luxury lifestyle hotel under Hyatt, the design concept of the hotel is “bringing scenery into the room,” aiming to create a “Vertical Shanghai Neighborhood” connecting historic alleys with the future skyline. The hotel has 267 rooms and suites, designed in a residential style, with corridor designs highlighting the iconic sycamore silhouette from Shanghai’s alleys.

Comment: The second Andaz in Shanghai consolidates the city’s position as a top global hotel hub.

3. Michael Kors appoints former Google executive Corey Moran as Chief Marketing Officer to strengthen data-driven marketing strategy

On March 19, American affordable luxury brand Michael Kors announced a major personnel appointment: Corey Moran will officially assume the role of Chief Marketing Officer on April 6, responsible for brand communication, content creation, and consumer data analysis, to enhance the synergy between “Jet Set lifestyle” storytelling and data-driven strategies, improving new customer revenue conversion.

Corey Moran has a diverse background spanning tech and luxury, with core strengths. He spent nearly ten years at Google, serving as head of fashion and luxury sectors before leaving, with deep insights into tech platform data and marketing. Previously, he worked nearly ten years at Coty Inc., holding senior marketing roles for brands like Marc Jacobs, Calvin Klein, Chloé, Bottega Veneta, Miu Miu, and Balenciaga, with earlier experience at Unilever in marketing, accumulating extensive marketing and data analysis expertise in fashion, luxury, and consumer sectors.

This personnel change comes at a strategic turning point for Michael Kors. The brand is upgrading omnichannel, renovating “residential-style” stores, adding Jet Set Lounge experience spaces to enhance lifestyle, while optimizing outlet channels and reducing purchasing agent businesses to boost brand value. Moran’s arrival is expected to inject data and marketing synergy into these strategies.

Comment: Can a tech-savvy marketing talent from Google help Michael Kors’s transformation?

4. London fashion brand operator Tomorrow Group changes ownership

On March 19, London-based fashion operator and developer Tomorrow Group announced a new owner: Progetto 11, the holding company of e-commerce platform The Level Group, completed its acquisition. Financial details were not disclosed. Founders and CEOs Stefano Martinetto and Three Hills Capital Partners will exit. The Level Group said the acquisition ensures operational continuity and supports transformation amid industry upheaval.

As a key platform in international fashion wholesale, brand incubation, and distribution, Tomorrow Group owns brands like Coperni, Charles Jeffrey Loverboy, Martine Rose, and has participated in major projects like Marni menswear, Diesel Red Tag, and Fear of God collaborations with Zegna. However, recent performance has been under pressure, with 2024 sales down 9% YoY to €1 billion, diverging from a previous 35% CAGR, and assets like A-Cold-Wall and London retailer Machine-A being sold. Before the acquisition, financial difficulties led to the cancellation of Martine Rose’s 2026 autumn/winter collection and Coperni’s absence from Paris Fashion Week due to strained relations.

The acquirer, Progetto 11, operates a diversified business, with The Level Group being a 15-year-old global end-to-end e-commerce operator, with revenue exceeding €250 million in 2025, working with brands like D&G, Ferrari, Herno, Off-White, among others.

Andrea Ciccoli, co-founder of The Level Group, emphasized that the wholesale fashion industry faces channel shifts and market challenges. Progetto 11 will leverage its digital direct-to-consumer experience to inject “digital integration” into Tomorrow Group, supported by solid finances to accelerate growth and expand its brand portfolio.

Comment: A financially troubled Tomorrow Group is being acquired by an e-commerce platform seeking transformation.

5. Zimmermann appoints new CEO, former Moncler executive

Australian luxury brand Zimmermann announced a major personnel change, appointing Roberto Eggs, with extensive experience in international luxury, as CEO, effective May 1. Former CEO Chris Olliver will become Executive Chairman, jointly overseeing long-term strategy with founders Nicky and Simone Zimmermann.

Eggs has an impressive track record in luxury, focusing on global expansion and multi-business integration. He spent over 11 years at Moncler, serving as Chief Marketing Officer, Chief Operating Officer, and ultimately as a board member and Chief Business & Global Markets Officer, leading Moncler’s globalization and playing a key role in Stone Island’s integration. Earlier, he was President of Louis Vuitton EMEA, managing key markets. His early career included senior roles at Nestlé and Nespresso.

Founded in 1991 by the Zimmermann sisters in Sydney, the brand has grown into a globally recognized luxury label with a design language rooted in Australian culture, with retail in North America, Europe, Middle East, and Asia-Pacific.

Comment: Zimmermann leverages veteran luxury executives’ experience to accelerate expansion.

6. NRF forecasts US retail sales to grow 4.4% in 2026

On March 18, the US National Retail Federation (NRF) released a forecast: driven by low unemployment, large tax refunds, and easing inflation, US retail sales in 2026 are expected to grow 4.4% YoY to $5.6 trillion, surpassing the 3.6% annual average over the past decade (excluding 2020-2022). The forecast was produced jointly with Oxford Economics using an optimized model.

NRF Chief Economist Mark Mathews said that despite concerns over rising fuel prices and inflation due to Middle East conflicts, consumer confidence has not improved significantly. However, a “disconnect” between spending and confidence suggests consumers will remain a key driver of the US economy in 2026. In 2025, US retail sales grew 3.9% to $5.4 trillion.

The core drivers for 2026 include: large tax refunds from the “Tax Cuts and Jobs Act” boosting early-year spending; inflation expected to stay high until mid-year then gradually decline; unemployment remaining below 4.5%, with a stable labor market, supported by rising incomes and healthy balance sheets. The 4.4% growth forecast is nominal; much of it is real growth, not inflation-driven, with low inflation on goods.

From a consumption structure perspective, high- and low-income groups show divergent spending patterns, with high-income households leading growth in most categories. NRF President Matthew Shay emphasized that 2025’s resilient consumer spending will continue into 2026, supporting economic stability.

Comment: NRF’s forecast signals that the US retail industry is emerging from volatility into steady growth.

7. Shein wins appeal in France, third-party marketplace remains open

On March 18, local time, Chinese fast fashion giant Shein scored a key legal victory in France. The Court of Appeal rejected authorities’ request to shut down its third-party marketplace, upholding the Paris court’s earlier ruling that a full shutdown was disproportionate given the presence of illegal goods, despite acknowledging serious risks to public order.

The lawsuit stemmed from violations in fall 2025, when reports surfaced of prohibited items like child sex dolls and weapons on Shein’s third-party marketplace. This coincided with the opening of Shein’s first physical store in Paris BHV, sparking public and political opposition. French prosecutors launched investigations, including into AliExpress and Temu. The government initially sought to temporarily shut down Shein’s entire French site, then only the third-party marketplace, but courts rejected both.

The court noted Shein’s quick response was key to winning. The platform voluntarily paused marketplace operations, gradually resuming services in early 2026. Despite legal issues, Shein is accelerating offline expansion in France, opening stores in five cities’ BHV department stores after the Paris flagship. However, challenges remain: in February 2026, France implemented a €2 per product parcel tax on cross-border e-commerce; 12 retail associations and local brands have sued Shein’s European subsidiary for unfair competition and non-compliance with EU safety standards, ongoing.

Europe is a key overseas market for Shein, with projected 2026 revenue of $17.9 billion, surpassing the US for the first time. The legal victory clears a major obstacle for expansion, but balancing compliance and growth remains a long-term challenge.

Comment: While the legal win eases restrictions, Shein’s European expansion remains a tug-of-war between compliance and market growth.

8. Armani Group announces Klaus Bierbrauer as Deputy CEO and Chief Supply Chain Officer

On March 17, Italian luxury fashion giant Armani completed key management appointments, with Klaus Bierbrauer joining as Deputy CEO and Chief Supply Chain & Industrial Officer, reporting directly to CEO Giuseppe Marsocci, succeeding Mauro Beretta. This marks the full formation of the core management team.

Bierbrauer has extensive supply chain management experience in luxury, having left Burberry where he was Chief Supply Chain & Industrial Officer, overseeing global supply chain and product R&D. He also spent over 20 years at Kering, managing supply chain roles for Gucci, Saint Laurent, Alexander McQueen, and more, with deep industry expertise.

Armani CEO Marsocci stated that Bierbrauer’s joining completes the management team, further strengthening the stable and collaborative structure to support long-term growth. This appointment is a key step following the passing of founder Giorgio Armani in September 2025. The company’s new board was elected in October 2025, with Armani Foundation and heirs selecting eight directors; Marsocci was appointed CEO, taking over operations of the 50-year-old luxury empire.

Comment: From Kering’s core brand supply chain leader to Burberry’s supply chain head, Bierbrauer’s experience bolsters Armani’s top management.

9. Lululemon 2025 full-year financials released; CEO deadlock persists

On March 17, Canadian high-end athleisure brand Lululemon reported its 2025 results: net revenue grew 5% to $11.1 billion, with strong growth in international markets, up 22%. Operating profit declined 12% to $2.2 billion, with an operating margin down 380 basis points to 19.9%. The fourth quarter, a key period, saw global net revenue up 1% to $3.64 billion, the slowest in nearly three years, mainly due to stagnant North American growth.

Regional revenue shifted notably, with global growth moving toward Asia. North America’s Q4 revenue was $2.65 billion, down 1%, while China became the main growth engine, with FY 2025 revenue of $1.755 billion, up 29%, with 24% quarterly growth, increasing its share from 13% to 16%. The company’s direct stores in China exceeded 170 by year-end, becoming the core of expansion; other regions’ revenue share increased slightly to 13%.

The CEO hiring remains deadlocked amid multiple factions. The weak performance, profitability decline, and North American slowdown highlight challenges, compounded by new international expansion plans. The CEO position became vacant after Calvin McDonald’s sudden departure after seven years. Multiple candidates are being considered, including external senior executives like Jane Nielsen from Ralph Lauren, but no official appointment has been announced.

Looking ahead to FY 2026, guidance is conservative: revenue growth of only 2-4%, with Q1 growth of 1-3%. The Chinese market remains a bright spot, expected to grow 20% annually.

Comment: The new CEO faces performance pressure even before taking office.

10. Kering forms independent jewelry division, appoints executives to focus on core sector

On March 16, French luxury group Kering announced a major strategic shift: establishing an independent Kering Jewelry division, integrating its four jewelry brands—Boucheron, Pomellato, Dodo, and Qeelin—to accelerate growth. Jean-Marc Duplaix was appointed CEO, effective immediately, also continuing as Group COO, with all four brands reporting to him.

Financials show these four brands’ combined revenue nearly €1 billion, with Q4 2025 sales up 10% YoY to €266 million, with 17% organic growth, outperforming the core fashion and leather goods segment. The new jewelry division will serve as an integration platform, maintaining brand creativity while developing flagship and high-end jewelry, and creating new opportunities for the fashion and leather goods brands.

Alongside this, Kering announced a restructuring plan: from Q1 2026, the company will report four segments—Fashion & Leather Goods (including Gucci, Saint Laurent, etc., with Gucci separately reported), Kering Jewelry, Kering Eyewear, and Corporate & Others (including services and Ginori 1735). Future reports will detail revenue by segment and region, improving transparency.

The jewelry division’s creation is a key move by CEO Luca de Meo to drive transformation. After three years of sales declines, with Q4 2025 fashion & leather goods revenue down 11% to €3.32 billion and Gucci down 16%, the jewelry segment’s strong performance is seen as a key turnaround. The group acquired Italian family jewelry maker Raselli Franco Group, which will join the new division, leveraging its craftsmanship and tech to boost growth. De Meo will unveil the full strategic plan at the upcoming Capital Markets Day in Florence on April 16.

Comment: Focusing on jewelry as a second growth driver and acquiring upstream manufacturers, Kering aims to revitalize its jewelry business through specialization.

11. Four Seasons yachts debut, bookings reach 80% in 2026

Four Seasons Hotels & Resorts’ first yacht, “Four Seasons 1,” has officially launched its maiden voyage. Built by Italian shipyard Fincantieri, this ultra-luxury yacht has secured 80% of bookings for 2026, with high-end suites sold out, confirming strong demand for luxury sea vacations.

Marc-Henry Cruise Holdings CEO Ben Trodd revealed the yacht is a cross-industry project between Four Seasons and Marc-Henry, measuring 207 meters long, with 15 decks, only 95 suites, no interior cabins, with a minimum of 550 square feet per room—50% more space than similar competitors. It features a 20-meter seawater pool, 11 dining venues, a co-branded luxury spa, and a 676-square-meter dual-hull marina area for private water activities.

The project adopts a division of labor: Marc-Henry handles operations, itineraries, and bookings; Four Seasons provides hospitality services and customer insights; design is by top Swedish yacht designers and creative directors. Trodd said the ultra-luxury market’s core has shifted from “wallet share” to “time share,” targeting younger high-net-worth individuals valuing flexibility and exclusivity.

A second yacht is expected to launch by late 2027, with a third in planning, further refining privacy and high-end offshore vacation offerings.

Comment: From aviation to yachts, from “wallet share” to “time share,” Four Seasons continues to push into new luxury domains.

12. Tiffany Taikoo Li flagship opens, LVMH’s three brands gather in Beijing Sanlitun

Recently, Tiffany’s flagship store in Beijing Taikoo Li officially opened. Global ambassador Zhang Ziyi, Chinese brand ambassadors Tang Yan and Zhang Ruo Yun, brand ambassadors Zhong Chuxi, Song Yuxi, Li Yunrui, Wang Xingyue, and others attended the ribbon-cutting, witnessing a milestone for the brand in China. With this, LVMH’s three flagship brands now all have stores in Beijing Sanlitun, creating a striking scene.

The facade, designed by MVRDV, draws inspiration from Elsa Peretti’s iconic designs. Made with eco-recycled, locally produced fins-shaped glass, it blends poetic rhythm with geometric beauty, creating a wave-like visual effect and layered blue sheen with shifting light.

To celebrate, Tiffany created four creative window displays, including one inspired by Jean Schlumberger’s “Bird on a Rock,” combining bird and Great Wall motifs, blending brand heritage with Beijing culture. The other windows pay homage to fish-shaped brooches and Tiffany’s aesthetic. Inside, a “Birdsong: Tiffany Antique Collection” exhibition showcases Jean Schlumberger’s masterpieces, open from March 14 to May 27, at Beijing SKP and Shanghai IFC stores.

Comment: The addition of LVMH’s three top luxury brands has transformed Beijing Sanlitun’s atmosphere.