Fashion, luxury and lifestyle aggregator – March 2026

Middle East conflict disrupts global fashion and luxury retail

The escalation of the conflict in the Middle East has introduced volatility into global markets, with the effects extending into fashion and luxury retail. Rising oil prices and disruption to shipping routes are driving up production and logistics costs, while weakening consumer confidence is dampening demand for discretionary goods.

Supply chains under strain

The closure of key maritime routes, particularly the Strait of Hormuz, has disrupted global shipping networks, causing severe delays and stranded cargo, and impacting key fashion manufacturing countries. Vessels have been reportedly unable to dock and containers stuck remain in transit. Many carriers have had to reroute via longer shipping lanes, extending transit times. Some have turned to air freight to avoid delays, but cargo prices have surged by up to 70% on some routes due to heightened demand and limited airspace capacity, inflating logistics costs across the sector. According to the chief executive of UK retailer Next, prolonged conflict in the Middle East could drive clothing prices up by 4% to 10%.

Temporary store closures

On the ground, many fashion retailers with storefronts in the Middle East either temporarily closed or reduced operations. Chalhoub Group, which runs 900 stores for brands including Jimmy Choo and Versace, shut locations in Bahrain. Gucci-owner Kering also temporarily closed its stores in the UAE, Kuwait, Bahrain and Qatar. In key shopping destinations like Dubai, many stores have been closed or running with skeleton teams due to safety concerns and declining footfall.

Luxury markets hit

Luxury stocks also fell 3% to 6% in early February as a result of the Middle East conflict. The Middle East typically accounts for only single digit percentage global sales for most luxury groups, suggesting this reaction may be overstated. However, the region has been one of the sector’s few recent growth drivers, and the extent of disruption will depend on how long the crisis continues. Prolonged travel restrictions could also weigh on spending abroad, particularly as Middle Eastern tourists have recently supported luxury sales in Europe.

Olympic glamour: the luxury brands that shaped the Winter Games

The Milan Winter Olympics concluded last month and provided the perfect stage for luxury fashion brands to debut ceremonial designs for participating nations’ uniforms. The International Olympic Committee (IOC) hosted the Olympic Winter Games Fashion Showcase for the first time, featuring opening ceremony outfits as well as performance wear. The showcase also included a one-off collection of designs created by students of prestigious art school Accademia di Brera, spotlighting high fashion pieces inspired by winter sports.

Notable partnerships included Ralph Lauren for Team USA, marking the brand’s tenth consecutive year as the team’s designer, Moncler for Team Brazil, and Emporio Armani for Team Italy. Emporio Armani has been making the Italian uniforms since 2012, and this year was the final Olympic legacy of the late Giorgio Armani.

Team GB uniforms were designed by premium British brand Ben Sherman for the fourth consecutive year. The ceremonial pieces included knitwear featuring the Union Jack, paying homage to British heritage and modern craftsmanship. Other nations, including Haiti and Mongolia, also celebrated their cultures. Team Haiti’s uniform was designed by Italian-Haitian designer, Stella Jean, and featured hand-painted designs incorporating elements from the work of Haitian artist Edouard Duval-Carrie. Premium brand Goyol Cashmere designed Team Mongolia’s uniforms which included traditional long belted robes (deel garments) made of premium cashmere and silk, highlighting the country’s nomadic heritage and ancestral craft.

Whilst some brands were not involved in designing ceremonial uniforms, they still capitalised on the surge of tourism and visibility generated by the Winter Olympics. In the lead-up to the Games, both Prada and Loro Piana opened new boutiques in Cortina d’Ampezzo, with collections featuring menswear and womenswear, and a focus on high-end ski and winter apparel.

$300 million revival for Saks Global, but British labels remain in limbo

Saks Global has unlocked a further US $300 million of its US $1.75 billion bankruptcy funding package. This tranche is said to provide the US retailer with liquidity to stabilise operations and fuel its turnaround.

Saks reported that nearly 600 brands resumed shipments following the progression of funding, helping to release more than US $1.4 billion in receipts and ease earlier inventory shortages. As part of the restructuring, the luxury retailer closed 24 full‑line stores and significantly reduced its off‑price locations to focus on stronger luxury markets. Merchandise receipts reportedly rose 60% year-on-year in March, indicating an improvement in stock flow as relationships with vendors begin to steady.

For British brands, however, uncertainty persists. A number of UK labels supplying Saks Global-owned Saks Fifth Avenue and Neiman Marcus say they are still awaiting repayment of stock, with some dating back as far as October 2024. Several brands describe limited communication from the US department store, but many continue to place new orders, often on stricter 30‑day terms, due to Saks’ influence in the US market.

Lululemon expands international presence as profit pressures persist

Lululemon has opened a new store on High Street Kensington, marking its 13th London location. The two‑floor store showcases Lululemon’s latest community‑led design, offering technical apparel and accessories. It forms part of the brand’s broader EMEA expansion, with the retailer recently announcing the milestone of 100 stores in the region.

Despite the international momentum, Lululemon’s financial results show a more complex picture. Fourth‑quarter profits fell to $586.9 million from $748.4 million the year before, despite revenue rising almost 1% compared to the same quarter last year. International sales were strong, with revenue up 17% and mainland China up 28%, but this was offset by weaker performance in North America, where revenue dropped 4%.

The brand is forecasting revenue of between $11.35 billion and $11.5 billion in 2026, reflecting growth of around 2% to 4%. A key focus for the year ahead is boosting full‑price sales in North America, with fewer markdowns to re-establish its status as a premium brand.