Italian fashion industry hit by supply‑chain probe and export slump

Italian prosecutors have expanded a criminal investigation into forced‑labour and illicit subcontracting within the country’s luxury fashion supply chains. The probe, which began with five brands such as Dior and Armani, now covers more than 20 additional labels including Chanel, Moncler, Bvlgari, Brunello Cucinelli and later Prada, Gucci and Versace. Brands have been asked to provide governance documentation, but none have been placed under court administration.

At the same time, the Italian footwear sector reported a contraction in its export performance for Q1 2026. Export volume fell 3.6% and value 1.6% year‑on‑year, with a 33% drop to the Middle East and a 62% plunge in March after the regional conflict. Exports to former Soviet bloc markets fell 21% and to the United States fell 7.4% amid tariff pressures. Domestic sales rose modestly, keeping overall turnover at €3 billion. The trade balance improved thanks to a sharp slowdown in imports.