|Bid||22.500 x 0|
|Ask||22.550 x 0|
|Day's Range||22.100 - 24.200|
|52 Week Range||20.750 - 39.000|
|Beta (3Y Monthly)||0.82|
|PE Ratio (TTM)||31.49|
|Earnings Date||Jul 30, 2019 - Aug 5, 2019|
|Forward Dividend & Yield||0.53 (2.34%)|
|1y Target Est||36.96|
In 2017, Italian eyewear behemoth Luxottica announced a merger with Essilor, a French lenses manufacturer. The $49 billion merger furthered Luxottica's entrance into all facets of eyewear, from design, to manufacturing, to retail. Though the merger was approved by several major international trade commissions, including the U.S.' FTC, some antitrust experts question if the move will help consumers, or entrench the industry standard in which glasses cost hundreds of dollars.
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.
(Bloomberg Opinion) -- Don’t blame street protests for the luxury bust in Hong Kong. They hurt, but there are bigger issues at play that have been building for a while.Hong Kong is on alert for signs that demonstrations against the way China’s special territory is being run are damaging the economy. So far, the impact has been small. The confrontations between black-shirted protesters and riot police may have shut down subway lines and defaced public buildings, but private property hasn’t been targeted. Shop windows displaying the likes of Prada handbags and Gucci loafers remain unsmashed even if tear gas outside deters passersby. Contrast that with a class-warfare struggle like, say, the Yellow Vests in Paris. But Hong Kong is undoubtedly feeling luxury pain. The dominant buyers are mainland Chinese who account for 30% of such purchases worldwide. While turned off by what some of them see as unpatriotic disorder, they were already curbing sprees in Hong Kong well before mass marches against an extradition bill kicked off the unrest. Chinese visitor arrivals have been gradually declining since January, tourism data show. The trade war and its impact on currency have eroded purchasing power. Hong Kong’s peg to the U.S. dollar means that the yuan’s slump this week to an 11-year low will further put off Chinese shoppers. That will eventually ripple through to other luxury destinations. Recent events will take a toll. The Hong Kong Retail Management Association has predicted double-digit declines in sales for July and August from the same period in 2018. June retail sales fell 6.7% from a year earlier, provisional government data show, dragged down by a whopping 17.1% plunge in jewelry, watches, clocks and "valuable gifts."That’s bad news for a city that built a reputation on luxury shopping and makes up between 5% and 10% of global purchases, according to analysis from Bernstein Research. But the former British colony has been losing its luster for bling for a while now.Chinese luxury shoppers still opt for Hong Kong as their No. 1 destination, followed by France, Japan, the U.S. and China, HSBC Holdings Plc said in an April research report. But as Chinese grow wealthier and better-traveled, short shopping trips across the border have a been-there, done-that feel.Blase but bargain-eyed tourists are quick to tie up a shopping trip with a sightseeing one. Buying that LVMH SA handbag in Paris is less of a big deal than it used to be. Violent protests scared tourists away from Paris for a while, giving Hong Kong a cushion, but they returned to the French capital in the spring, Bernstein Research found.Then there’s the online challenge. A lot more luxury buying happens at home as brands cater to China’s digitally savvy shoppers. HSBC reckons that there will be 50-50 split between overseas and domestic shopping within two years, from 75-25 a few years ago. Chinese buyers still face a price gap. Louis Vuitton’s Speedy bag 25 (with strap) sells for 1,020 euros ($1,143) in France, HK$11,800 ($1,505) in Hong Kong and 10,900 yuan ($1,552) in China. Beijing, however, has been cutting value-added and import taxes to encourage consumers to spend more at home. The overall gap with prices in France has narrowed from more than 50%. Luxury brands are picking ambassadors like pop idols Kris Wu and or Lu Han to fight back. They’re also watching prices. French luxury goods group Kering SA cut prices on its Italian Gucci brand by 3% in China after the latest round of value-added taxes came into effect in April but still boasts strong sales there. In contrast, less trendy Italian fashion house Prada SpA posted a 5.1% drop in greater China first-half sales. When times are tough and the economy is slowing, Chinese consumers, like those elsewhere, become picky. One area that’s stayed resilient is high-end fashion with a sporty twist, due to its popularity with millennials. They like Balenciaga SA's Triple S sneakers and the gym clothes co-launched by Louis Vuitton and New York-based skate brand Supreme.At some point as the trade war intensifies, Chinese appetite will further diminish. Other markets won’t be spared. Hong Kong is proving a trip-wire for brands coping with some of the world’s highest rents. But the clouds of tear-gas shouldn’t obscure longer bad times coming for bling. To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- The world’s biggest brewer may be calling time on a long-established practice in Hong Kong’s stock market.The Asian unit of Anheuser-Busch InBev NV is aiming to raise as much as $9.8 billion in what’s poised to be the world’s biggest initial public offering so far this year. Unusually for a deal of this size, the company doesn’t plan to reserve a block of stock for so-called cornerstone investors. That’s good news for potential subscribers concerned that the business may lose its fizz after listing.Cornerstone investors are companies, institutions or wealthy individuals that commit to buying a chunk of stock at the IPO price and holding it for a minimum period, typically six months. The presence of such heavyweights helps to ensure the success of a sale by signaling confidence in the issuer’s prospects and enticing the wider investing public to climb on board. Associated mostly with Chinese state-owned firms in recent years, cornerstones have a long pedigree in Hong Kong, with billionaire tycoons such as Li Ka-shing, the city’s richest man, and Lee Shau-kee frequently called on to provide a seal of approval for key IPOs.The trouble with cornerstones is that they drain liquidity by tying up so much stock after listing. They’re disliked by bankers, lawyers and some investors. It’s debatable whether they even serve companies, beyond the immediate objective getting their offerings through the gate. If trading proves moribund once they’ve joined the market, the end-game can be a withdrawal of the listing.So market participants are watching Budweiser Brewing Company APAC Ltd. closely. The absence of cornerstones means there will be a battle of wills between believers who see the IPO as a chance to buy into a company in a high-growth region with a lock on China’s taste for premium beer, and skeptics who view the offering as overpriced. The valuation looks punchy, at 22 times estimated Ebitda for 2019 at the top of the mooted range, as my colleague Chris Hughes observed last week.The distorting effect of cornerstone investors has arguably grown bigger as Hong Kong tycoons have taken a back seat and Chinese state-owned enterprises, which may have a less commercial rationale for such purchases, have increased their presence. Out of 36 IPOs in the past five years that raised more than $1 billion, 33 had a cornerstone tranche, according to data compiled by Bloomberg. Postal Savings Bank of China Co., which raised $7.62 billion in 2016, sold almost 77% of its offering to cornerstones including China Great Wall Asset Management, China State Grid Corp. of China, and conglomerate HNA Group Co.All the top 10 biggest cornerstone tranches in that group were for Chinese government companies. In April, state-backed brokerage Shenwan Hongyuan Group Co. raised $1.15 billion, with 71% of the deal locked up. The company’s shares have fallen 27% since they started trading. Postal Savings has lost 1.5% since listing, versus a 22% gain for the benchmark Hang Seng Index.Private companies also use cornerstones, though they tend to allocate lower percentages. Smartphone maker Xiaomi Corp. earmarked 24% of its $5.4 billion IPO last year to 10 investors including Hillhouse Capital and Alibaba Group Holding Ltd. Xiaomi shares slumped on the day the six-month holding period ended, accelerating a decline that began when they started trading.Lack of liquidity may be an even bigger concern, and it isn’t confined to Chinese companies. Glencore International Plc, the world’s largest listed commodity trader, sold stock to cornerstone investors including BlackRock Inc. and Abu Dhabi’s Aabar Investments PJSC when it listed in London and Hong Kong in 2011. The company delisted from Hong Kong six years later, saying trading in the stock was a fraction of the U.K. equivalent.Singapore-based video-gaming firm Razer Inc. sold almost 30% of its 2018 offering to cornerstone investors. But other non-Chinese companies including Prada SpA, L’Occitane International SA and Samsonite International SA have eschewed the practice.A successful Budweiser sale would deal a further blow to the cornerstone custom. AB InBev executives and bankers said Thursday that they had enough investor demand just two days into the IPO roadshow. That should rouse a chorus of cheers from many in the Hong Kong market.\--With assistance from Zhen Hao Toh. To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Prada S.p.A.'s (HKG:1913) latest earnings announcement in December 2018 confirmed that the company endured a immense...
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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.
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MILAN/Paris (Reuters) - French luxury goods group Kering said on Thursday it had agreed to pay a record 1.25 billion euros (£1.08 billion) to settle a dispute with Italian tax authorities centered on its fashion brand Gucci. The settlement, first reported by Reuters last month, is the highest ever agreed by a company with Italian tax authorities. Kering, which has denied avoiding tax, has a cash pile estimated by analysts at more than 10 billion euros, meaning it was equipped to absorb the cost.
MILANO, April 30 (Reuters) - The following factors could affect Italian markets on Tuesday. Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with ...
After Prada S.p.A.'s (HKG:1913) earnings announcement in December 2018, it seems that analyst forecasts are fairly optimistic, as a 43% increase in profits is expected in the up...
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