Euros Add Up to Fewer Bargains for Fashion Shoppers

PARIS--When 13 European countries converted their currency to the euro at the beginning of this year, many of fashion’s frequent travelers hoped for a new level of convenience, particularly for Americans because of the euro’s similarity to the U.S. dollar. They got it, and more--it seems the “e” in euro stands for equalizer.

“It’s much easier now,” said New York photographer Kenneth Willardt, who frequently works in Europe for Cosmopolitan, Allure, Marie Claire or L’Oreal. The single currency has helped make paychecks more predictable for the international set of fashion industry workers, such as Willardt, who sometimes saw his pay in dollars dip or rise as much as 30%, depending on the strength of the franc, mark or lira.

That equalizing effect, however, means there sometimes is not much of a difference between the prices of luxury fashion goods purchased in Europe and in the United States. Some suspect that manufacturers have actually raised prices on luxury goods.

“It’s affected my shopping,” said Cosmopolitan fashion and beauty director Elaine Farley of the strong euro. “The prices feel the same as in New York. And the shoe prices are the same.” Shoppers were dismayed in Milan, where before the euro, the traditionally weak lira, a rebate on value-added taxes and a fashion industry discount often brought designer prices down to levels that Farley equated to “Banana Republic” prices.

“Now the only reason to shop in Europe is if you get an industry discount,” Farley said, “but even those are getting scarce” for magazine editors who typically are allowed to use the discounts. Only a handful of designers extended editors a discount card this year, compared with more than a dozen that Farley counted just last season. She and Willardt said they’re waiting for sales to hit back home.

“As far as I’m concerned,” said New York photographer Maria Valentino, “it’s all just dollars.”

Taking It to the Streets

When the audience for Yohji Yamamoto’s fashion show left the elegant Petit Palais grounds, it was greeted by the sight of fire eaters and fire jugglers who illuminated a row of models in avant-garde clothing. Americans immediately recognized the tactic as one spawned on the streets of New York--a guerrilla fashion show. Aspiring designers seeking attention from fashion’s top names occasionally have presented sidewalk shows that are carefully timed to begin as a more famous designer’s audience departs a show. Designer Ashley Tyler, naturally a New Yorker, staged the show, though darkness and the swirling movements of the fire jugglers made it tricky to see the clothes in detail.

The following day, Belgian Erik Verdonck rode the coattails of fellow countryman Dries van Noten with a different gimmick. Using a large umbrella laced with red lights to attract attention, Verdonck’s colleagues handed out a magazine article about him and invitations to his Sunday presentation, which took place the same night as hot ticket John Galliano’s.

Luxury Lives

Marc Jacobs for Louis Vuitton is one designer who can confidently sign a long-term lease. While sliding profits at specialty stores and some designer houses have sent nervous jitters through ateliers, Louis Vuitton remains one of the strongest brands in the LVMH Moet Hennessy Louis Vuitton stable, said Yves Carcelle, president of the luxury conglomerate’s fashion group.

“Louis Vuitton is doing very well in the United States,” he said before the LVMH-owned Givenchy show Saturday. Vuitton’s sales are up 9%, while the LVMH fashion group is up 13%, he said. “Considering the decrease in sales from the Sept. 11 effect, that is a very nice performance.”

He conceded that tourism declines have hurt store sales in cities such as Beverly Hills and Las Vegas, but he expects the new Miami store and the New York flagship, opening next year at 57th Street and Fifth Avenue (in the old Warner Bros. store space), to boost U.S. sales.

“I think the passion for luxury is still very strong,” he said.