Mon, Jul. 25, 3:33 AM
- For only the second time in its almost 30-year history, LVMH Moet Hennessy Louis Vuitton (OTCPK:LVMUY), the largest luxury conglomerate in the world, is selling a fashion brand.
- The French company has agreed to sell Donna Karan International to G-III Apparel Group (NASDAQ:GIII) in a deal worth $650M.
- The sale is expected to close in late 2016 or early 2017.
Mon, Jul. 25, 2:39 AM
- A cascade of terrorist attacks in Europe is driving away tourists at the height of the summer rush, casting a pall over hotel chains, airline companies and luxury retailers that are already grappling with Britain's vote to leave the EU.
- Germany was the latest country to get hit by a series of violent incidents over the weekend, including a suicide bombing and stabbing by two Syrian refugees and a German-Iranian teenager that shot and killed nine people at a mall in Munich.
- Related stocks: IHG, AAL, OTCQX:DLAKF, OTCQX:DLAKY, OTCPK:AFLYY, OTC:AFRAF, OTCPK:ICAGY, OTCQX:ESYJY, OTC:EJTTF, RYAAY, OTC:RYAOF, OTCPK:TCKGY, OTC:TCKGF, OTCPK:HESAY, OTCPK:HESAF, OTCPK:LVMUY, OTCPK:LVMHF, OTCPK:PPRUY, OTC:PPRUF
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)