|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||430.40 - 436.40|
|52 Week Range||319.70 - 498.20|
|Beta (3Y Monthly)||0.90|
|PE Ratio (TTM)||29.24|
|Forward Dividend & Yield||6.20 (1.42%)|
|1y Target Est||N/A|
Rocky M. soap dish by OBAStudios, £25 Using bar soap helps to cut down on bottled alternatives and is the perfect excuse for this hand-painted addition to the bathroom or kitchen. pelicanstory.com Lunch ...
(Bloomberg) -- LVMH’s sales of luxury goods to key Chinese consumers have kept growing rapidly despite a slump in the Hong Kong shopping hub caused by anti-Beijing protests.The owner of Louis Vuitton and Christian Dior threw down a gauntlet to rivals with 19% third-quarter revenue growth in fashion and leather goods. Analysts had predicted a 15% gain on a comparable basis.LVMH shares rose as much as 5.5% in Paris on Thursday, the most since January, and they’re up 45% this year. Gucci owner Kering SA and Cartier parent Richemont posted smaller gains.The luxury leader’s strong performance allays some concerns about the effects of the Hong Kong disruptions, showing that the Chinese demand that is increasingly driving growth in the industry remains robust. The demonstrations against the tightening grip of China’s government in the city have curbed travel to Hong Kong by mainland consumers, but they’re still splashing out on high-end fashions elsewhere.“We believe that the bulk of the Hong Kong weakness has been compensated in other markets,” Citi analyst Thomas Chauvet said in a note. “This sets the bar pretty high for peers.”Total sales at the luxury conglomerate, which also makes Dom Perignon Champagne and owns cosmetics retailer Sephora, rose 11% to 13.3 billion euros ($14.6 billion), beating the 9% consensus estimate.The overall gain masked weakness in Hong Kong, where August and September sales fell 40%, Chief Financial Officer Jean-Jacques Guiony said on a call Thursday, a day after the company’s report. While that will hurt LVMH’s profitability this year because of high fixed costs in the city, the company is confident business will recover eventually, he said.“It’s out of the question that we would consider that Hong Kong will not be a strong business center in the years to come,” he said.Elsewhere, the company is getting a boost from changes at its biggest labels. Christian Dior Couture has accelerated since the arrival of a new menswear chief, Kim Jones. The brand has reissued men’s versions of bestselling Dior products for women like Saddle bags and Bar suits.Menswear RevampLouis Vuitton, the company’s largest and most profitable brand, is raking in the buzz from increased online marketing spending. The label has also revamped its menswear under designer Virgil Abloh, known for his streetwear brand Off-White and work as a creative consultant to Kanye West.Forecasts for the luxury giant’s growth were tempered as LVMH boutiques in Hong Kong became a backdrop for protests that spilled from the city’s streets to its airport and shopping malls. About 6% of the company’s sales were registered in Hong Kong dollars during the first half of the year, according to an interim financial report.The protests have slammed a tourism industry that used to thrive on visits from mainland China, raising questions on the future of Hong Kong as a luxury hub. Hong Kong’s retail sales by value plunged a record 23% in August from a year earlier as demand for luxury goods such as jewelry and watches plummeted.Mainland Chinese have been doing more of their shopping close to home as Beijing cut import duties, bringing down local prices, and cracked down on the widespread practice of returning home from overseas with undeclared purchases.The protests are expected to speed up that trend. Still, analysts anticipate that most luxury brands will make up only around half of their lost Hong Kong sales elsewhere.(Updates with CFO comments in seventh and eighth paragraphs)\--With assistance from Gregor Stuart Hunter.To contact the reporter on this story: Robert Williams in Paris at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Anne PollakFor 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.
(Bloomberg Opinion) -- “Flygskam” (or flight shame) has made some people too embarrassed to fly because of the damage to the planet. Might fashion be the next business to suffer as consumers put on their environmental hair shirts?Bernard Arnault, chairman of luxury behemoth LVMH Moet Hennessy Louis Vuitton SE, has criticized the 16-year-old climate activist Greta Thunberg as being “demoralizing for young people.” She’s probably a bit of a downer for him too.Arnault’s business depends on shoppers, especially young ones, buying lots of unnecessary stuff, from Christian Dior saddlebags to expensive lipsticks from the pop star Rihanna’s Fenty range. Fretting about an impending environmental catastrophe, and worrying that your purchases are contributing to it, is hardly conducive to a spot of retail therapy.The clothing and footwear industries (of which luxury is only a part) contribute about 8% of global C02 emissions, according to Quantis, an environmental consultancy. The Ellen MacArthur foundation, a non-profit organization, estimates that the textiles business generated more greenhouse gas emissions in 2015 than all international flights and shipping combined. There’s plenty here to infuriate Thunberg.Reliable data on the luxury industry’s environmental performance isn’t easy to come by, but one group (made up of Global Fashion Agenda, an industry forum, the Sustainable Apparel Coalition and the Boston Consulting Group) has had a go at creating at a scorecard. This “Pulse Score” is based on elements such as the ecological smartness of product design, raw material use and manufacturing processes. Getting 100 would be perfection on sustainability; nobody comes close to that.Overall, fashion had a pretty underwhelming score of 42 out of 100, although the big luxury companies scored a slightly more respectable 54. While this isn’t exactly cause to celebrate, it does show that the financial clout of LVMH — and its big peers such as Gucci-owning Kering SA and Switzerland’s Compagnie Financiere Richemont SA (home to Cartier) — might be an advantage when it comes to trying to mitigate their impact on the planet and its resources.Yet one can’t ignore the scale of that industry impact. The luxury goods makers have enjoyed more than three years of blockbuster growth, driven largely by Chinese shoppers, meaning they’re gobbling up more natural resources than ever. And as the chart below shows, the natural materials favored by the fashionable elite have the worst effect on the environment (silk is a particular disaster). None of this is helped by the wasteful practices of many shoppers, who move on quickly to the next hot design, or indeed some of the companies. Britain’s Burberry Group Plc came under justified fire last year for its now abandoned practice of destroying unsold stock to prevent it being sold off cheaply.Kering, founded by Arnault’s great rival Francois Pinault, does at least try to be transparent about the damage it does. It publishes an environmental profit and loss account, which put the cost of its impact on the planet in 2018 at about 500 million euros ($549 million). It estimates that about three-quarters of this came from raw materials processing and production. Still, while it’s honest of them to publish these data, the harm is still being done.LVMH has kept a lower profile, though it does perform well on one measure. Morgan Stanley analysts say that the more a luxury company does its own manufacturing, the better it performs on environmental, social and governance targets. That’s because some of the worst industry practices happen in the supply chain away from the direct control — and responsibility — of the parent. The LVMH brands rank well on this measure, according to the Morgan Stanley research. Three of its brands (Loro Piana, Louis Vuitton and Christian Dior) do most of their own manufacturing.As Arnault’s attack on Thunberg highlighted, there’s a reason why these companies are trying to mend their ways: younger shoppers, including Chinese ones, are demanding it. In 2018 all of the industry’s growth came from the under-40s, according to consultants at Bain & Company. Those consumers are more likely to be loyal to brands with a conscience. Yet no matter how much attention the industry pays to the planet, this business is still about getting people to spend money on stuff they could live without. If the rich can be shamed into giving up their far-flung holidays, what does the future hold for Gucci’s diamond belt?\--With assistance from Elaine He and Lara Williams.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell 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.
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Christian Dior presented a wardrobe fit for glamorous eco-warriors in Paris on Tuesday, as models showed off looks dotted in wild flowers on a catwalk lined with trees set to be replanted around the city. Dior, part of luxury group LVMH, is one of the first major French brands to kick off Paris Fashion Week, with the likes of Kering's Saint Laurent and independent Chanel also set to showcase looks for next spring and summer. Hot on the heels of runway shows in New York, London and Milan, where some labels as well as organisers sought to address consumer concerns over the industry's green credentials, Paris is also looking to improve its environmental record.
PARIS/MILAN (Reuters) - Jacket maker Moncler joined Louis Vuitton owner LVMH on Wednesday in reporting a pick up in sales growth in the second quarter, as the luxury firms capitalised on strong Chinese demand and investments in marketing and new designs. "With Chinese customers, there was a noticeable improvement between the first quarter and the second quarter," LVMH's Financial Director Jean-Jacques Guiony told analysts.
(Bloomberg Opinion) -- Burberry Group Plc just pulled a rabbit out of its vintage check hat. The British luxury brand – which is in the middle of a business turnaround – reported same-store sales growth of 4% in the three months to June 29, double what was expected by analysts. The performance is all the more notable given the disruption to its Hong Kong stores from the city’s recent protests.Under creative director Riccardo Tisci, the company is trying to move its handbags and clothes up-market to compete with the likes of Louis Vuitton and Christian Dior. Tisci’s new monogram, based on the initials of the founder Thomas Burberry, is proving a hit with Chinese millennials. Having the Burberry name emblazoned on bags and sweatshirts is winning the hearts of young Asian shoppers, as are the limited edition “drops” of products sold via Instagram and China’s WeChat.Tisci’s collection now makes up about half of the Burberry range and its sales rose by a “strong double-digit percentage.” The shares jumped more than 10% on Tuesday after the sales update was published, taking the increase since the end of May to 30%. Sterling’s weakness is helping too.Investors are clearly betting that Tisci’s creations can do the same thing for Burberry that Gucci’s recent success did for the French luxury group Kering SA. And with more of his collection due in the next nine months, there are some grounds for optimism. Burberry estimates that three-quarters of its product range will be from the new designer by March next year.But Burberry isn’t free of its recent travails quite yet. It still has a lot of old stock hanging around and a U.S. distribution network that needs refreshing. As a result, the company maintained its outlook for flat revenue and operating profit margin for this financial year.Keeping a lid on expectations at this stage is wise because there’s scope for setbacks. While Chinese shoppers have led the Burberry revival, sales to them now account for about 40% of the group total. That means any trade war-related consumer slowdown might hurt demand.Burberry also needs to better exploit the Tisci buzz. It still doesn’t seem to have gained the traction that Gucci did in the early stages of its recovery, when everyone from Beyonce to One Direction’s Harry Styles sported the label.There’s a lot riding on this turnaround. If it works, Burberry could take a leading role in fashion industry consolidation; it had 837 million pounds ($1 billion) of net cash to play with at the end of March. You could see an attempt to create a British luxury empire to rival those being built in the U.S. by Capri Holdings Ltd. and Tapestry Inc.If the recovery stalls, though, that cash balance will look mightily attractive to other industry predators. Burberry may still end up in someone else’s fashion collection.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell 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.
(Bloomberg) -- Burak Alici, a veteran Morgan Stanley mutual fund manager, is starting his own firm to invest in public and private companies through a permanent-capital vehicle, according to a person familiar with the matter.Qvidtvm Inc. is seeking to raise $100 million to $200 million, using a C-corp structure that caters to family offices in which investors lock up capital for years, said the person, who asked not to be identified because the firm hasn’t officially launched. The vehicle, which the firm plans to list as a publicly traded conglomerate, will focus on equity investments in consumer goods, industrials and digital companies.Alici, 43, left Morgan Stanley Investment Management earlier this year after working there since 2007, managing the Global Discovery Portfolio. The fund has outperformed about 97% of its peers in the past three years, helped in part by bets on Bernard Arnault’s Christian Dior SE as well as early investments in Dropbox Inc., Airbnb Inc., Blue Bottle Coffee Inc. and Palantir Technologies Inc., the controversial data-mining company co-founded by Peter Thiel.He is bringing Morgan Stanley alumna Nina Murphy with him as chief operating officer as well as Max Schwendner, formerly of JPMorgan Chase & Co., as director of private investments, the person said. The team has started investing as it raises funds, taking a stake in Italian coffee company Ditta Artigianale.Representatives for Qvidtvm and Morgan Stanley declined to comment.The firm, whose name comes from a Latin phrase translated as what next, is launching at a time when more investors are willing to make longer-duration capital commitments to seek better returns. They’re wagering that buying equity in companies in the private market and tying that money up as the investment matures will yield more than the shorter holding period of hedge funds, for example. Warren Buffett built his Berkshire Hathaway Inc. around such a buy-and-hold model of investing.The Turkish-born Alici holds degrees from Columbia University, Boston College and Bogazici University in Istanbul. He will be based in Texas, while the rest of the investment team is in New York.To contact the reporter on this story: Nikolaj Gammeltoft in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, ;Alan Mirabella at email@example.com, Josh Friedman, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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European shares slipped on Thursday as investor sentiment was dented by global growth slowdown fears but gains in France thanks to strong earnings helped set a lower limit to the broader decline. The U.S. Federal Reserve maintained its patient stance on Wednesday citing risks from a cooling global economy and an unresolved trade dispute with China and potentially the European Union, which came shortly after the European Central Bank had also maintained its dovish stance. Ireland's Brexit-sensitive ISEQ stock index was flat after the European Union gave British Prime Minister Theresa May until October to leave the bloc, but the lack of clarity on when, how or even if Brexit will happen, kept a lid on gains.