Designer Moves Show How Much Luxury Is Hurting: Andrea Felsted

Fashion people are obsessed with designer moves. Investors should be too.

Earlier this month, Chanel named Matthieu Blazy, the creative director of Kering SA’s Bottega Veneta, as its new top designer in an unprecedented round of musical chairs that has also seen Hedi Slimane leave Celine and Kim Jones exit Fendi, both owned by LVMH Moet Hennessy Louis Vuitton SE.

Such high-level creative moves are indicative of the distress in the luxury sector, with demand this year expected to be the weakest since the financial crisis, excluding the Covid-19 disruption five years ago, according to Bain & Co.

Companies are trying to find ways to reconnect ...