These are the stories making headlines in fashion on Wednesday.
Adidas confirms customs raid
Tax and customs officials raided the Adidas headquarters and other locations in Germany on Tuesday, confirmed the brand. The raid was a part of an ongoing investigation into the company’s customs and tax regulation compliance from 2019 to 2024. According to officials, Adidas has been cooperative and is in contact with relevant authorities. The brand does not anticipate that the investigation will have any financial impact, but it has reportedly made provisions. {The Wall Street Journal/paywalled}
Temu seeks to expand premium brand offerings
Chinese e-commerce platform Temu is looking to bring higher-quality brands to its customers. Representatives from the retailer recently confirmed these intentions while attending the Footwear Show New York Expo at The Plaza Hotel, an event typically associated with comparatively higher-cost retailers and brands. A representative told Modern Retail that Temu hopes to shift its image from ultra-discount to that of an all-around retailer like Amazon. {Modern Retail}
Luigi Mangione drives brand awareness
On the day he assassinated United Healthcare CEO Brian Thompson, Luigi Mangione wore a Peak Design backpack and a Tommy Hilfiger jacket. Peak Design, a formerly less-known travel and tech gear brand, will likely see a spike in sales due to increased mentions online. Levi’s, Monopoly and McDonald’s have also seen several more mentions as reports of the manhunt and investigation are published. {WWD/paywalled}
Macy’s closes accounting error investigation
Macy’s Inc. released its Q3 earnings report on Wednesday, following the conclusion of its investigation into erroneous accounting errors that hid $151 million in delivery expenses between 2021 and 2024. “We’ve concluded our investigation and are strengthening our existing controls and implementing additional changes designed to prevent this from happening again and demonstrate our strong commitment to corporate governance,” Macy’s Chairman and CEO Tony Spring said in a statement. “Our focus is on ensuring that ethical conduct and integrity are upheld across the entire organization.” The company reports that the error had “no material impact to financial results.” {Macy’s Inc.}
Indie beauty brands are expanding into the African market
Africa’s beauty market is historically underserved, but indie brands including Adwoa Beauty and The Steam Bar have set their sights on the continent. The Steam Bar launched in South Africa on Dec. 10 in a partnership with Woolworths, which currently operates in 11 African countries but plans to expand. Success in the market will rely on customers feeling seen by brands and leaning into widely known and loved ingredients, hairstylist Charlotte Mensah told Business of Fashion. {Business of Fashion/paywalled}
Kim K and Skims CEO talk next steps
Following the soft opening of its Fifth Avenue flagship store and the five-minute sell-out of its North Face collaboration, Kim Kardashian and Skims CEO and Co-Founder Jens Grede have big plans for the brand in 2025. They’ve signed 11 leases, planning to expand their brick-and-mortar footprint to include several California locations and one in Charlotte, N.C. Kardashian teased a Skims runway show and said the company’s IPO is on the back burner for now. {WWD/paywalled}
Source: Fashionista.com