|Bid||3.0400 x 250000|
|Ask||3.1200 x 110000|
|Day's range||3.0400 - 3.0400|
|52-week range||2.4200 - 3.3000|
|Beta (3Y monthly)||1.22|
|PE ratio (TTM)||30.40|
|Forward dividend & yield||0.58 (18.83%)|
|1y target est||6.67|
(Bloomberg) -- Chinese consumers may not be splurging as much on non-essential goods, which doesn’t bode well for luxury companies, according to Sanford C. Bernstein.“More muted” demand from affluent Chinese customers may lower the growth prospects of luxury companies in the absence of further political monetary policy intervention and lack of progress in U.S.-China trade talks, Luca Solca, analyst at Bernstein, wrote in a note summing up the broker’s takeaways from a 2-week trip to China. Leading and concurrent indicators are pointing to weakening discretionary spending there, which means the luxury-goods sector may be close to a “temporary plateau,” he said.Chinese millennials splashing out on pricey designer clothes and bags, jewelry and watches have been a crucial engine of growth for companies from LVMH and Kering to Moncler SpA and Richemont during the luxury boom of the past few years. Signals of a China spending slowdown are likely to weigh on stocks that have enjoyed a strong run.The recent field trip “points to a moderating luxury spending environment” for next year, Solca wrote. The negative impact from protests in Hong Kong is also likely to linger well into the first half of 2020, Solca added.A “polarization” among the top- and worst-performing luxury brands will probably continue, according to the analyst. He sees labels such as LVMH’s Louis Vuitton and Christian Dior, Kering’s Gucci, Chanel and Hermes International maintaining “the upper ground.”LVMH, which climbed to a record this week, is among the top performers on Europe’s Stoxx 600 Personal & Household Goods Index this year with a 56% increase. Moncler shares are up 30% in the period. By contrast, German apparel maker Hugo Boss AG and Switzerland’s Swatch Group AG are down 27% and 3.2% respectively this year.To contact the reporter on this story: Albertina Torsoli in Geneva at firstname.lastname@example.orgTo contact the editors responsible for this story: Beth Mellor at email@example.com, Namitha Jagadeesh, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Even some of the world’s toniest luxury makers are speaking up on behalf of workers threatened by store closures.Their concern is highlighted in a court statement from a group of Barneys New York Inc. creditors, which include high-end brands like Gucci and Prada, in support of a bid that would keep more of the bankrupt retailer’s existing stores open.Preserving those outlets “would inure to the benefit of the thousands of employees -- many who live paycheck to paycheck,” not to mention vendors, landlords and customers, according to the document filed Wednesday by the official committee of unsecured creditors.Concerns about workers displaced by retail bankruptcies and liquidations have gained prominence since former employees at Toys “R” Us Inc. organized to demand promised severance pay after that retailer collapsed. The group caught the attention and support of prominent lawmakers including presidential candidates and senators Elizabeth Warren and Cory Booker.A promise to save jobs at Sears Holdings Corp. helped Edward Lampert secure ownership of the bankrupt retailer after Sears initially rejected his going-concern bid in favor of buyers who would have shuttered the chain.Societal NeedsWhile bankruptcy auctions typically are won by the highest bidder, the Barneys creditors argued that “societal needs -- such as preservation of employee jobs -- are an appropriate consideration in weighing competing offers.”In the 2009 bankruptcy case of Dial-A-Mattress, the fate of workers was identified among key issues to consider in evaluating the highest and best offer, the creditors committee said.The Toys “R” Us case last year was a watershed, after more than 30,000 workers didn’t receive expected severance pay. Working with the advocacy group United for Respect, former employees rallied for not only the creation of a severance fund but also higher priority for workers’ claims in bankruptcy.Some of those demands found their way into proposed legislation, and the toy seller’s former private-equity owners created a $20 million severance fund.“Our financial and bankruptcy rules are broken and must be changed so that working people’s livelihoods are protected,” said Sarah Woodhams, a former Toys worker who now works with United for Respect.Authentic Brands Group LLC has been designated the so-called stalking-horse, or lead, bidder to buy the assets of Barneys.The terms of its about $271 million offer include plans to open Barneys shops in 41 Saks Fifth Avenue stores, while closing most of the existing locations. A going-concern bid from a consortium led by entrepreneur Sam Ben-Avraham failed to qualify, leading to the cancellation of a scheduled auction.Ben-Avraham is planning to make another bid to buy Barneys, WWD reports, citing unidentified people familiar with the matter.Representatives for Barneys and Ben-Avraham didn’t immediately respond to requests for comment. Authentic declined to comment.Barneys last week said it would continue to evaluate offers up until its sale hearing on Oct. 31.The case is Barneys New York Inc., 19-36300-cgm, U.S. Bankruptcy Court for the Southern District of New York (Poughkeepsie).(Updates with worker comment in the 10thparagraph)To contact the reporters on this story: Lauren Coleman-Lochner in New York at firstname.lastname@example.org;Eliza Ronalds-Hannon in New York at email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, Nicole BullockFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Despite the pressures piling onto the luxury industry, LVMH has pulled a great performance out of its roomy monogrammed bag.Sales excluding currency movements rose by 11% in the three months to Sept. 30, better than the consensus of analysts’ forecasts of 9.2%. That’s creditable given the ongoing disruption in Hong Kong.Don’t be lulled into a false sense of security, though. LVMH is the world’s biggest luxury group, with a broad geographic reach and a portfolio spanning fashion to spirits. Not all of the sales reports from high-end sellers in the coming weeks will be as alluring.Purveyors of bling have enjoyed more than three years of frantic growth, driven primarily by Chinese consumers, who account for about a third of sales and have snapped up Christian Dior book bags and Balenciaga sneakers. Some slowdown was inevitable. Despite the reassurance from LVMH, the risk of a hard landing, rather than a gentle deceleration, is rising.LVMH’s fashion and leather goods sales growth of 19% was much stronger than the consensus for a 15% expansion. That indicates that many purchases that would have been made in Hong Kong were diverted to the mainland, or to other Asian shopping destinations. The group has about 1,340 stores across Asia excluding Japan, so it can pick up sales wherever they are made. It helps that the Christian Dior brand is red hot right now, too. Even so, Bernstein forecasts that the protests will shave 0.6-1.2 percentage points off of the entire industry’s growth rate this year, so that expansion will be a figure in the mid-single digits.That’s not disastrous. But Hong Kong isn’t the only cloud on the high-end horizon. Trade tensions between the U.S. and China continue to simmer. So far, consumers appear to be adapting to the new reality. But some data points are more worrying. For example, Chinese consumer confidence slipped in July. Analysts at Citigroup have also noted the potential for Japanese sales to be hurt by the recent increase in the country’s consumption tax from 8% to 10%.And it is not just Asia that luxury-goods groups have to fret about.In general, consumers are more willing to splurge on things they can’t really afford, or don’t really need, when they’re feeling confident and flush with cash. With political turmoil on both sides of the Atlantic, and concerns mounting about economic growth, that’s unlikely to be the case. LVMH said it made “good progress” in the U.S. But increasing fears of a downturn next year will do nothing to encourage spending there.Like LVMH, Kering SA also has a broad reach, but it’s navigating Gucci’s transition from stellar to steady growth. Conditions are not ideal for those groups trying to revive their performances, such as Prada SpA and Salvatore Ferragamo SpA, although there are signs that Burberry Group Plc is gaining momentum with young Chinese shoppers.There’s another reason why the pain might not be spread evenly. With fat margins, and little debt, the biggest groups have plenty of scope to invest. If they keep up capital expenditure when times are tough, they can emerge even stronger. Louis Vuitton designing clothing for characters in the popular fantasy game League of Legends is a case in point. As all of the industry’s growth is coming from the under 40s, investments that appeal to the cool kids are wise. The big groups also have the balance-sheet firepower to make acquisitions.Share prices have been hurt since mid-September by the escalation of protests in Hong Kong. Even so, the Bloomberg Intelligence top luxury peer group trades on a forward price-earnings ratio of about 22 times. That’s a decline to be sure, but it’s not that far off the peak of about 27 in June 2018.Bernard Arnault, chairman of LVMH, has bemoaned high valuations as a barrier to deals. There may still be some way to go until prices are more palatable. But if nascent industry woes become more pronounced, he may finally get his chance to swoop. \--With assistance from Nisha Gopalan.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Louis Vuitton owner LVMH beat sales forecasts for the third quarter despite unrest in Hong Kong that has forced luxury goods labels to shut stores, in an encouraging sign for rivals who might also be able to make up for the lost business elsewhere. High-end brands have long relied on Hong Kong as a major shopping hub which draws visitors from mainland China in particular, and four months of pro-democracy demonstrations are starting to take their toll. France's LVMH, behind fashion brands like Christian Dior as well as Veuve Cliquot champagne, did not give details of the sales hit from the protests in an update late on Wednesday.
Ben Ainslie named his new multi-million-dollar America's Cup yacht "Britannia" on Friday as he launched the revolutionary foiling AC75 he hopes will bring international sport's oldest trophy back to Britain. Ainslie's INEOS TEAM UK are aiming to challenge Emirates Team New Zealand for the America's Cup in Auckland in 2021 and the futuristic boat will soon be put through its paces on the waters of the Solent, near his base in Portsmouth, southern England. INEOS TEAM UK is the fourth team after New York Yacht Club's American Magic, the defenders Emirates Team New Zealand and Prada's Luna Rossa to reveal their take on the design rules for the 36th America's Cup.
Ben Ainslie named his new multi-million dollar America's Cup yacht "Britannia" on Friday, as he launched the revolutionary foiling AC75 he hopes will bring international sport's oldest trophy back to Britain. Ainslie's INEOS TEAM UK is aiming to challenge Emirates Team New Zealand for the America's Cup in Auckland in 2021 and the futuristic boat will soon be put through its paces on the waters of the Solent, near his base in Portsmouth, southern England. INEOS TEAM UK is the fourth team after New York Yacht Club's American Magic, the defenders Emirates Team New Zealand and Prada's Luna Rossa to reveal its take on the design rules for the 36th America's Cup.
HONG KONG/PARIS/MILAN (Reuters) - Global luxury brands from Prada to Cartier are counting the cost to their businesses of four months of unrest in Hong Kong that has kept tourists away and forced shops to shut, with upcoming results set to reveal the damage. Hong Kong, which ranks among the world's top five luxury destinations, has long been a magnet for brands attracted by the flow of visitors from mainland China. Visitor arrivals dropped 39%, with the number of mainland tourists to Hong Kong falling 42.3%.
PARIS/NEW YORK (Reuters) - When fashion label Prada started demanding greater control over shop floor arrangements in U.S. department stores, Barneys New York, now mired in bankruptcy proceedings, was one of the few with enough swagger to resist. The luxury retailer, respected by its well-heeled clients for its selection, said in interviews at the time it wanted to maintain its influence over buying the merchandise rather than ceding to a leased shop-in-shop controlled by the brand. Prada eventually reintroduced its women's styles to the department store after a three-year hiatus, and still counts Barneys as a wholesale partner, a person close to the label said.
PARIS/NEW YORK, Aug 13 (Reuters) - When fashion label Prada started demanding greater control over shop floor arrangements in U.S. department stores, Barneys New York, now mired in bankruptcy proceedings, was one of the few with enough swagger to resist. The luxury retailer, respected by its well-heeled clients for its selection, said in interviews at the time it wanted to maintain its influence over buying the merchandise rather than ceding to a leased shop-in-shop controlled by the brand. Prada eventually reintroduced its women's styles to the department store after a three-year hiatus, and still counts Barneys as a wholesale partner, a person close to the label said.
Revenue at Italian fashion group Prada rose 2% in the first half of the year, in line with market expectations, as improving full-price sales and a solid growth in its wholesale channel offset the impact of a move to cut back on markdowns. Prada sales had risen in 2018 for the first time in four years helped by a new strategy aimed at rejuvenating the brand which focused on renovating shops, new products and digital sales. The retail network declined 3% affected by the phase-out of markdown sales, while the wholesale channel rose 14% driven by online sales, with the rationalisation not having any impact yet on that part of the business.
Italian luxury fashion house Prada has announced it will stop using animal fur from next year. The designer brand which has sold mink, fox and rabbit pieces is making the change to meet the demand for ethical products from shoppers. Multiple animal charities had been working with Prada behind the scenes after running a public campaign urging the brand to drop fur last September.
Italy's Prada will stop using animal fur in its products from the 2020 women's spring-summer collections to be presented in September, the luxury group said on Wednesday. The decision is part of a wider trend among fashion brands to champion ethical and sustainable policies in a bid to win over environmentally-savvy younger customers. In September, London Fashion Week declared itself fur-free for the first time, just a few days after a similar announcement from Britain's Burberry.
Italian luxury goods group Prada said it would shrink its wholesale network in Italy and Europe in a push to have uniform prices for its products across different outlets and reduce markdowns. Prada joined a number of rivals that have been striving to control pricing policies better as they face an increasingly fragmented market, in which prices have been put under pressure by booming online sales. For Prada, the decision "is essential to ensure greater consistency in pricing policies" and aims to support sustainable long-term growth, the company said in a statement on Tuesday.
April 2 (Reuters) - Oracle Corp: * THE PRADA GROUP ADOPTS ORACLE CLOUD SOLUTIONS TO SUPPORT OPERATIONAL EFFICIENCY AND EFFECTIVENESS * ORACLE CORP - WITH ORACLE RETAIL CLOUD SERVICES MERCHANDISE FINANCIAL ...
MILAN (AP) — The Prada fashion group says its revenues grew by 6 percent last year as the company honed its social media strategy to draw in customers.
Italian luxury group Prada said on Friday it would stop offering end-of-season promotions at its stores, in a bid to boost margins and protect its brand after achieving revenue growth in 2018 for the first time in four years. The Milan-based group, run by husband and wife team Miuccia Prada and Patrizio Bertelli, aims to cement a sales revival that began at the end of 2017 after a change in the company's strategy. "We decided to stop doing markdowns from 2019 onwards," Bertelli, who is Prada's chief executive, told analysts in a conference call.
March 15 (Reuters) - Prada SpA Chief Financial Officer Alessandra Cozzani tells post-results analyst call: * PRADA CFO SAYS MID-SINGLE DIGIT LIKE-FOR-LIKE GROWTH NEEDED TO MAINTAIN LEVEL OF MARGINS Further ...
March 15 (Reuters) - Prada SpA Chief Financial Officer Alessandra Cozzani tells post-results analyst call: * PRADA CFO SAYS LIKE-FOR-LIKE "REGULAR SALES" ARE POSITIVE FROM BEGINNING OF 2019 * ...