Men’s fashion prices frozen

PRADA, Holding and Hugo Boss are among European designer-clothing brands freezing prices of men’s 2004 spring/summer collections, trying to spur sales as the dollar slides and shoppers from New York to Tokyo cut spending.

Some of the largest fashion houses showing at the Pitti Immagine Uomo men’s wear trade fair in Florence on June 19 to 22 and Moda Milano Uomo in Milan on June 22 to 26 said the cost of clothes won’t change.

Smaller rivals such as Ferragamo SpA and Ermenegildo Zegna Group, which can’t absorb the dollar’s effect on sales, will limit increases to 10% or less.

Price increases will compensate in part for the dollar’s 25% drop against the euro in the past year. Companies including Zegna, which offers men’s suits for $1,800, make as much as 35% of sales in the US and will use the Italian shows to promote products to retailers such as Saks Fifth Avenue.

“It’s better to hold their positions and make less money today in hopes of recouping it tomorrow when the dollar rises again than losing sales volumes,’ said Carlo Pambianco, founder of the Pambianco Strategie d’Impresa consulting firm in Milan.

Prada, the Italian fashion house plans to hold men’s wear prices unchanged next year. Hugo Boss, Germany’s largest maker of clothing, will do the same.

Zegna, also closely held, intends to boost dollar prices of the spring collection at Pitti by about 10%.