Milan, Italy: Milan Fashion Week has officially begun, bringing six days of high fashion, trendsetting collections, and global attention to Italy’s style capital. However, as designers showcase their Autumn/Winter 2025-2026 collections, the industry is facing turbulence, with declining sales, economic uncertainty, and a struggling luxury sector casting a shadow over the event.

The Italian fashion industry, a cornerstone of the global luxury market, saw a 5% decline in sales last year, with estimates predicting further struggles in 2024. Economic instability, weakened demand in China, and reduced consumer appetite for high-end goods have contributed to the slowdown.

Gucci’s decline and Kering’s struggles

Luxury giant Gucci, a Milan Fashion Week staple, is kicking off the event amid a crisis. The brand reported a 23% drop in sales, leading to the sudden exit of creative director Sabato De Sarno after just two years. Gucci’s parent company Kering, which also owns Saint Laurent and Bottega Veneta, saw a 62% plunge in net profit last year, prompting emergency measures to revive brand desirability.

Kering CEO François-Henri Pinault acknowledged the crisis but remained optimistic, stating, "Gucci will come back. I have absolutely no doubt." However, analysts suggest that luxury consumers, facing high prices and economic concerns, are cutting back on discretionary spending.

Italy’s luxury industry in Crisis

The downturn extends beyond Gucci, with Italy’s entire fashion sector, including eyewear, jewelry, and beauty, expected to generate €96 billion in 2024, a 5.3% drop from the previous year. The Italian leather and footwear industry is faring even worse, with revenue projected to fall by 8.1%, leading to widespread furloughs and factory closures.

Swiss brand Bally has already announced the shutdown of its Florence production facility, while the Italian government has allocated €110 million in support funds to aid struggling fashion businesses.

Anniversaries, absences, and major shows

Despite the challenges, Milan Fashion Week is set to feature powerhouse brands like Prada, Giorgio Armani, Versace, Max Mara, Ferragamo, and Dolce & Gabbana. However, notable absences include Bottega Veneta, which has postponed its show until September.

Several brands are marking major anniversaries, with Fendi celebrating 100 years, DSquared turning 30, and K-Way marking its 60th anniversary.

Fashion’s uncertain future

Industry leaders, including Italian Fashion Chamber President Carlo Capasa, stress the need for "creativity, pragmatism, and flexibility" to navigate the crisis. Calls for government support, supply chain improvements, and digital innovation are growing as brands seek solutions to revive luxury demand.

As Milan Fashion Week unfolds, the question remains: Can the industry’s glamour and innovation counteract economic reality?