Kering's Q4 Report Sees Balenciaga Ad Controversies Contribute to Its Declining Numbers01/06/2023
No other luxury brand has seen more peaks and valleys than Balenciaga, this past year. The luxury fashion house kick-started 2022 by continuing its reign as the hottest brand in the world, as reported by Lyst. It enjoyed an upward trajectory with the release of its adidas collaboration, as well as endorsements from the artist formerly known as Kanye West and his ex-wife Kim Kardashian. When Ye’s antics caused the fashion world and beyond to reevaluate their relationship with him, it was a blowback to the brand since his presence was very much synonymous with Balenciaga for the majority of the year. In the midst of losing Ye as a celebrity spokesperson, Balenciaga released one of the most controversial ad campaigns that inappropriately sexualized children.Since the ad’s reveal, Balenciaga was quickly hit with a slew of negative repercussions that have stifled the brand’s hyper-growth mode.
WWD recently reported on an equity research report from HSBC. Released earlier this week, the report indicated that Balenciaga has suffered major losses specifically in the US and UK markets. According to the fourth quarter, results of its parent company,