Au Revoir To The One Thing Hiding LVMH-Moet Hennessy's Growth From The Market
Dallas Salazar • 10 Comments
Dallas Salazar • 10 Comments
Tue, Jul. 5, 2:43 PM
- Full-price sales of luxury items have dropped sharply since the Brexit vote came in. Data-tracking firm Edited reports global luxury sell outs decreased 60% in the two weeks after the Brexit referendum, compared to the two-week period prior to the vote.
- The sector was already having a challenging year due a drop in Chinese tourism before the shock U.K. result.
- Luxury retailers: Gucci (OTC:PPRUF, OTCPK:PPRUY), Louis Vuitton (OTCPK:LVMUY), Coach (NYSE:COH), Ralph Lauren (NYSE:RL), Michael Kors (NYSE:KORS), Burberry (OTCPK:BURBY), Tiffany (NYSE:TIF), LVMH (OTCPK:LVMHF, OTCPK:LVMUY), Richemont (OTCPK:CFRUY, OTCPK:CFRHF), Remy Cointreau (OTCPK:REMYF, OTCPK:REMYY).
Thu, Apr. 28, 2:38 PM
- J.C. Penney (JCP +1.8%) says it will add Sephora shops to another 60 stores across the U.S. Close to half of the new Sephora shops will open this week.
- Sephora is already found in about 600 J.C. Penney stores. Not only do those stores outperform non-Sephora stores, but the brand accounts for a good portion of the company's online sales.
- Sephora is owned by LVMH ([LVMHF], OTCPK:LVMUY).
- Now read J.C. Penney: The Plus-Size Opportunity
Oct. 30, 2015, 3:48 PM
- Sephora (OTCPK:LVMHF, OTCPK:LVMUY) will open stores in Iran next year, according to Reuters.
- The local market is the second largest in Middle East for beauty products with sales of over $3.8B last year.
- Some analysts think European luxury products will also see strong demand in Iran.
- Sephora has been a significant revenue growth driver for LVMH in recent years.
Oct. 12, 2015, 1:04 PM
- LVMH (OTCPK:LVMHF, OTCPK:LVMUY) topped revenue estimates with its Q3 report.
- Organic revenue was up 7%, compared to the 5.4% consensus mark of analysts. An acceleration of sales in Japan helped to pull up the total.
- Organic revenue growth by business group: Wines & Spirits +16% (boosted by strong Hennessy cognac volume in China); Fashion & Leather Goods +3%; Perfumes & Cosmetics +7%; Watches & Jewelry +11%; Selective Retailing +5%.
- LVMH's YTD organic growth stands at 6%.
- Full LVMH earnings release
Sep. 1, 2015, 7:58 AM
Aug. 28, 2015, 11:52 AM
- Department store chains increased their market share of beauty sales by a full percentage point to 12.7% over the last five years in a positive sign for the sector.
- The group made its gains in the high-end and niche parts of the beauty market, while conceding some parts of the mass market segment to Sally Beauty Holdings (NYSE:SBH), Ulta Salon (NASDAQ:ULTA), and Walgreens Boots Alliance (NASDAQ:WBA) on pricing.
- J.C. Penney (NYSE:JCP) has been a leader with its striking partnership with Sephora (OTCPK:LVMUY, OTCPK:LVMHF), while Macy's (NYSE:M) +$200M acquisition of Bluemercury sets it up to hit luxury shoppers as well. Kohl's (NYSE:KSS) and Dillard's (NYSE:DDS) also are rolling out new beauty and fragrance lines. Beauty is seen as one of the few categories the chains can drive traffic in effectively with marketing.
- Department stores commanded beauty market share of close to 14% before online sales and discounters started kicking into a higher gear.
Aug. 19, 2015, 12:39 PM
- The handbag sector has had a rough time this year due to developments in the China luxury market, although analysts are quick to note that other factors are also in play.
- Surging demand for athletic and designer shoes has taken a toll on handbag sales, notes B. Riley's Jeff Van Sinderen.
- Other industry watchers blame heavy product distribution and excessive promotion for making some brands too "ubiquitous" with buyers.
- Within the sector, Kate Spade (NYSE:KATE) has reported stronger sales growth this year than Coach (NYSE:COH), Michael Kors (NYSE:KORS), Gucci (OTC:PPRUF, OTCPK:PPRUY), and Louis Vuitton (OTCPK:LVMUY).
Aug. 11, 2015, 9:37 AM
- Sephora announces it will launch a subscription beauty box.
- The monthly delivery service will be priced at $10 per month.
- Online demand has been very strong for Sephora products over the last two years as the replenishing trend in the beauty category has strengthened.
- Sephora is owned by LVMH (OTCPK:LVMHF, OTCPK:LVMUY).
Jul. 28, 2015, 3:34 PM
- LVMH (OTCPK:LVMHF, OTCPK:LVMUY) reports revenue rose 19% to €16.7B ($18.46B) in 1H.
- Organic growth for the company was 6%.
- Profit from recurring operations increased 15% to €2.576B ($2.85B) to top estimates from European investment firms.
- U.S. sales were up 11%, while Europe was also in double-digits with 12% growth. Asia revenue fell 6%.
- Revenue by business group was led by watches & jewelry (+23%) and selective retailing (+21%).
- The Bvlgari, Tag Heuer, and Sephora brands performed well during the period.
- LVMH earnings release
Jun. 12, 2015, 9:32 AM
- Luxury retailers continue to struggle in China as consumers in the nation adjust to pricing disparities derived from currency fluctuations.
- Last year, luxury sales in China fell 11% while overseas purchases by Chinese tourists rose 9%.
- The tally for overseas purchases included the "grey market" where items are bought overseas then resold inside China.
- The trend has continued this year, despite efforts by companies to reset pricing.
- China luxury sellers: Gucci (OTC:PPRUF, OTCPK:PPRUY), Prada, Louis Vuitton (OTCPK:LVMUY), Coach (NYSE:COH), Ralph Lauren (NYSE:RL), Michael Kors (NYSE:KORS), Swatch (OTCPK:SWGAY), Burberry (OTCPK:BURBY), Tiffany (NYSE:TIF).
May 26, 2015, 11:45 AM
- Talk of LVMH (OTCPK:LVMUY, OTCPK:LVMHF) making a run at Tiffany (TIF -1.6%) is likely to pick up again after Tiffany reports FQ1 earnings tomorrow, according to CTFinancialNews.
- Though Tiffany has been seen as a potential LVMH target for several years, a 20% drop in the luxury stock's share price this year makes the case for an acquisition a bit more compelling.
- Analysts expect Tiffany to report revenue of $927M and EPS of $0.69 for the F/X-challenged quarter.
May 13, 2015, 10:05 AM
Apr. 29, 2015, 11:46 AM
- J.C. Penney (NYSE:JCP) says it will add Sephora to 25 new stores to expand on an existing partnership.
- The company will also expand six existing Sephora shops.
- Sephora has seen robust global growth this year and has a strong online presence.
- The Sephora brand is owned by LVMH (OTCPK:LVMHF, OTCPK:LVMUY).
Apr. 20, 2015, 12:10 PM
- Research firm Global Blue says Chinese tourists increased their luxury spending by 67% in Q1.
- High-end retailers with stores in Europe received a good portion of the sales after a weak euro attracted tourists to buy in the region over Hong Kong.
- Last year, Chinese tourists increased spending by 18%.
- A reselling trend in China has accounted for some of the brisk growth, while also pressuring prices for luxury brands in China.
- Luxury retailers: Gucci (OTC:PPRUF, OTCPK:PPRUY), Louis Vuitton (OTCPK:LVMUY), Coach (NYSE:COH), Ralph Lauren (NYSE:RL), Michael Kors (NYSE:KORS), Burberry (OTCPK:BURBY), Tiffany (NYSE:TIF), LVMH (OTCPK:LVMHF, OTCPK:LVMUY), Richemont (OTCPK:CFRUY, OTCPK:CFRHF), Remy Cointreau (OTCPK:REMYF, OTCPK:REMYY)
Apr. 14, 2015, 7:51 AM
- Luxury spending in Europe appears to be on the rise, notes retail watcher Rahul Sharma.
- The analyst notes Audi, BMW, and Mercedes-Benz all posted March sales records.
- Yesterday, LVMH (OTCPK:LVMHF, OTCPK:LVMUY) reported sales increased 16% to €8.3B $8.8B (+3% ex-currency) in Q1 off of a tough comparable period. Sales for the selective retailing category were up 20% Y/Y.
- The trend could set up well for Tiffany (NYSE:TIF), Ralph Lauren (NYSE:RL), Coach (NYSE:COH), Michael Kors (NYSE:KORS), Hermes (OTCPK:HESAF, OTCPK:HESAY), and Richemont (OTCPK:CFRUY, OTCPK:CFRHF) which have suffered a bit with Chinese tourism to Europe down.
Mar. 19, 2015, 9:19 AM
- Tag Heuer (OTCPK:LVMHF, OTCPK:LVMUY) will partner with Google and Intel on a new smartwatch that will debit this year.
- The move by the company into wearable technology was anticipated with the focus on the impact of Apple Watch in the sector.
- LVMH has more to worry about than just the developments in Cupertino. The dismantling of the Swiss franc and pressure to drop pricing in China are two challenges it's currently taking on.
- Previously: Weak euro puts luxury brands in a China predicament
LVMH-Moet Hennessy Louis Vuitton is a diversified luxury goods conglomerate. It produces and sells champagne under the brands Moet & Chandon, Veuve Clicquot, and Ponsardin. LVMH also produces cognac through Hennessy and Hine. The Company makes perfumes, cosmetics, luggage, watches and jewelry,... More
Sector: Consumer Goods
Industry: Apparel Stores
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