Luxury Goods

PETA’s anti-leather push at LVMH faces handbagging

13 Jan 2017

The animal-rights group has acquired an undisclosed stake in the French luxury firm. It will keep LVMH on its toes. Yet a likely rebound in bag margins this year means that the usual goal of the activist – disposals of offending businesses – is firmly off the agenda.

Kering shows up luxury’s diversity problem

14 Dec 2016

Unlike peers, Gucci's owner now has a relatively progressive new global parental leave policy. Women also make up two-thirds of Kering's board. Beyond that, the sector is a relative underperformer on diversity - even though at some labels women drive 80 pct of sales.

Coach passes Burberry’s new CEO heavy baggage

5 Dec 2016

The UK trenchcoat maker has reportedly spurned takeover approaches from its U.S. rival. Burberry could fetch 8.1 bln pounds with a premium. New boss Marco Gobbetti doesn’t start until next year. His first task will now be to show why going it alone is the better option.

Richemont earns reprieve from negative watch

4 Nov 2016

The Cartier owner's first half was less alarming than it had warned. Shedding executives and stores should bring greater focus in an era of faltering watch sales. It all lends weight to a sum of the parts analysis that implies the Swiss luxury group is undervalued.

Gucci’s owner develops taste for C-suite churn

25 Oct 2016

A fresh designer and CEO have worked magic at Gucci. Third-quarter sales at the label that makes the bulk of Kering’s operating profit grew 17 pct. Yet having hired four new chiefs and parted with two creative heads in 10 months, the French group risks overworking the formula.

Coach tie-up with Burberry is too fashion forward

21 Oct 2016

Shares in the $7.9 billion British label rose after a report the U.S. bagmaker might bid. The two could go together nicely. As befits a luxury brand, though, there’s no bargain here. Even with synergies, Coach would have to pay prices that would make a fashionista blush.

Burberry shares priced a size too big

18 Oct 2016

The UK luxury label said sales in its home market grew over 30 percent as tourists cashed in on the weak pound. Demand in the U.S. is deteriorating, however. Burberry is tackling its problems head on, but there are few green shoots yet to justify a recent rally in the shares.

LVMH gets first-class luggage at no-frills price

4 Oct 2016

Louis Vuitton’s owner is buying a majority stake in German suitcase maker Rimowa for 640 mln euros. The multiple of two times sales is less than what Samsonite recently paid for rival Tumi. Perhaps the Arnault clan persuaded family-owned Rimowa to leave some money on the table.

Gauging luxury demand now more art than science

14 Sep 2016

Watch-maker Richemont said first-half operating profit will be down 45 percent, with sales poor in all regions. Bag-maker Hermes is to scrap sales targets. With global GDP still to grow by 2.4 percent this year, brands can't just blame weak economies.

Jimmy Choo works hard to get just an inch

25 Aug 2016

The luxury shoemaker’s sales grew 9.2 percent in the first half and operating profitability improved. Its shares still trade at a discount to peers, hit by Brexit worries and exposure to one product. Despite good growth prospects, investors remain reluctant to toe the line.

Big hand points to volatility for Swiss watches

23 Aug 2016

Exports to the UK grew 13.4 pct in July as the weak pound brought bargain-hunting tourists. But globally, shipments continued to slump. Falling, lumpy demand and increasingly mobile customers mean there is little for luxury brands like Swatch and Richemont to set their watch by.

LVMH results showcase benefits of mixed luxury bag

26 Jul 2016

A pop in demand for champagne and cognac boosted sales of the fancy French conglomerate in the first half and offset declines at its core fashion division. As travel fears and lower demand for designer goods bite, LVMH's diversity allows it to hold its own better than rivals.

LVMH hints at timely wardrobe edit

25 Jul 2016

Selling Donna Karan to U.S. fashion company G-III for $650 million is a rare fashion cast-off for the French luxury group. More underperforming brands may be sold as global sales of designer goods slow. That presents opportunities for smaller but ambitious luxury players.

Time to end Swatch margin destruction

15 Jul 2016

The watchmaker has warned profit will fall 50-60 percent in the first half. Sales will underperform the wider Swiss watch industry and there's limited scope to raise prices. Yet there are no real cost-cutting plans. Swatch is in denial about the scale of the problems it faces.

Hermes shows scarcity is still a classic

1 Jun 2016

A Birkin handbag fetched $300,000 at auction in Hong Kong, a new world record - even though sales in the wider luxury sector are hitting the skids. The lesson for rivals is that rarity still elicits demand. That's cold comfort for luxury brands that have grown too big