|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||382.00 - 388.80|
|52 Week Range||242.30 - 389.45|
|Beta (3Y Monthly)||1.28|
|PE Ratio (TTM)||30.32|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||6.00 (1.57%)|
|1y Target Est||319.92|
(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.
Virgin Galactic, Richard Branson’s long-running attempt to fulfil a boyhood fantasy, is going public. By merging with Social Capital Hedosophia, a cash shell run by thin-skinned venture capitalist Chamath ...
July 15th, 2019 Stella McCartney and LVMH have reached an agreement to further develop the Stella McCartney House. The new partners will detail the full scope of this deal in.
Despite Jean-Éric Vergne back to back world championship, the 2018-2019 Formula E season was especially exciting, resulting in a season that had 8 different winners over the span of 13 races. And while exciting is good for motorsports, that’s not the only reason why big manufacturers and brands spend small fortunes to compete in, and sponsor, motorsports.
LVMH has snapped up a minority stake in Stella McCartney’s eponymous brand, illustrating how the world’s largest luxury group by revenues is seeking to improve its environmental credentials. The deal comes just over a year after ethical fashion pioneer Ms McCartney split from LVMH’s rival Kering, with whom she first launched her brand and had a 50-50 partnership.
The big shareholder groups in LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) have power over the...
The Mexican government has questioned Louis Vuitton's use of a traditional Mexican pattern in the design of a chair, less than a month after it sent a similar letter to another prominent fashion house. The culture ministry said in the letter dated July 5 that it was surprised to find one chair in the Dolls by Raw Edges collection by the Paris-based fashion house featured the designs of Mexican artists in Hidalgo. It is the second time in less than a month that the Mexican government sent such a letter.
Moody's Investors Service has today assigned a first-time A1 long-term issuer rating and Prime-1 (P-1) short-term issuer rating to leading French luxury goods group LVMH Moët Hennessy Louis Vuitton SE (LVMH). Moody's has also assigned an A1 rating to LVMH's senior unsecured notes and a (P)A1 rating to its medium-term notes program.
In an interview with Cheddar TV, IPO Edge Editor-in-Chief John Jannarone explains what it will take for newly-listed shares of The RealReal (ticker: REAL) to maintain their current sales multiple. The company, which sells second-hand luxury goods from fashion houses such as Hermès, LVMH Moët Hennessy’s Louis Vuitton, and Kering SA’s Gucci, will likely see […]
Paris, 1 July 2019 On 28 June 2019, LVMH Moët Hennessy-Louis Vuitton S.E. (« LVMH ») entered into a revised liquidity contract with ODDO BHF SCA, relating to the LVMH shares.
(Bloomberg Opinion) -- The protests in Hong Kong have, rightly, captured the world’s attention. If the demonstrations provoke no small amount of anxiety for onlookers living abroad, the strain on the city and its residents is surely acute.With streets getting closed and travel disrupted, businesses there will inevitably feel an effect. The world’s most famous luxury goods brands will not be immune. Hong Kong accounts for between 5 percent and 10 percent of global luxury sales, according to Luca Solca, analyst at Bernstein. That shouldn’t be a surprise to any visitor. Luxury seems to be everywhere, from the vibrant Tsim Sha Tsui district, to the many big malls boasting everything from giant Louis Vuitton boutiques to top-end jewelers. Even with the opening of swathes of upmarket stores in mainland China, and the rise of Tokyo, Seoul and other rival destinations, Hong Kong remains an important center for wealthy Asian shoppers.There will clearly have been a hit to footfall for many brands since the public outcry over a proposed extradition law first started earlier this month. Some locations closed, including the Pacific Place mall, where most of the big labels are represented. Even if stores were open, shoppers may have been deterred from visiting affected areas.Of particular concern will be any impact on visits by Chinese consumers to Hong Kong. This is crucial for the industry, given that they account for a third of global sales. The longer the protests continue, the greater reason they will have to stay away. Further demonstrations are expected in the coming days, particularly around the anniversary of the 1997 handover to China on July 1. Quantifying the financial impact on the luxury market is difficult at this point. But recent events may provide some clues.Richemont said in January that the yellow vest protests in Paris had hurt sales in Europe in the third quarter of its financial year. The owner of the Cartier and Jaeger-LeCoultre brands had earlier noted that typhoons in Asia last September, which forced stores in Hong Kong to shut for a few days, contributed to a slow down in its sales in the region that month.Neither comparison is perfect. The yellow vest movement was particularly painful for shops, hitting Paris for six consecutive Saturdays in the crucial year-end holiday shopping period. Meanwhile, the typhoons didn’t just affect Hong Kong, but other Asian regions.But they do offer some indication of the headwind luxury goods groups may face. While there is some potential to make up for any lost footfall, it is limited.There is scope for spending in the region to simply shift to other locations. If so, luxury conglomerates LVMH and Kering will have the best defenses. Their diversified portfolios and extensive store networks give them a better opportunity to satisfy the demands of high-end customers. It also helps that LVMH’s Dior, and Kering’s Balenciaga are hot right now. And if Chinese consumers switch from large purchases to more affordable treats, sellers of premium cosmetics such as L’Oreal SA will also be well positioned.The trend for Chinese consumers to buy at home has been gaining ground for a while now, and recent events may accelerate this further. The shift has been driven by a reduction in duties on domestic purchases, eroding the premium that shoppers traditionally paid.Even so, Catherine Lim, analyst at Bloomberg Intelligence, says Chinese consumers may not be as extravagant at home as when they are travelling. On holiday, they may be more inclined to make impulse purchases. But even if the all-important Chinese shopper can buy in other locations, the question is whether he or she will still want to.The Chinese economy is fragile, and could worsen for any number of reasons, including an escalation in the trade war. That could create a serious drag on spending at the top end of the market. The luxury industry has so far withstood the U.S.-China standoff, and valuations have been relatively undisturbed. Forthcoming second quarter earnings will show whether the potentially toxic combination of nervous Chinese consumers and disruption to one of their favorite shopping haunts was enough to undermine that resilience.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Jennifer Ryan 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) -- Online luxury reseller The RealReal Inc. rose 45% in its first day of trading after a $300 million initial public offering.The RealReal’s shares, after rising as much as 50%, closed up at $28.90 in New York trading Friday, giving the company a market value of about $2.39 billion. The RealReal sold 15 million shares for $20 each on Thursday after marketing them for $17 to $19.The company, founded by Chief Executive Officer Julie Wainwright, makes it easier sell and buy used luxury items such as clothing, accessories and jewelry on consignment by providing a platform for transactions and verifying that the goods are authentic.Shoppers, especially millennials, are thinking more about sustainability and what happens to their clothes,” Wainwright said in an interview.“It was like a drumbeat when we started,” said Wainwright. “Now it may not be the first reason they buy, but it’s the second.”Internet-based apparel resellers like The RealReal, ThredUp Inc. and Poshmark Inc. have emerged as trendy alternatives to the secondhand clothing market. The RealReal focuses on luxury apparel items from designers like Hermes and Louis Vuitton, catering to the high-end fashion market, while ThredUp and Poshmark feature lower-priced items.Used clothing, footwear and accessories represent a $10 billion market in the U.S., according to data from market research firm IBISWorld Pty Ltd. Interest from young, sustainability conscious shoppers has been a boon for the industry, which the firm forecasts will grow around 1.6% a year through 2024.All this has made old clothing a magnet for investment. Venture capital has poured in, with more than $1.1 billion dropped into used-clothing operations over the past several years, according to data compiled by Bloomberg.Venture FundingThat included more than $350 million in funding for The RealReal and about $130 million for ThredUp. French startup Vestiaire Collective raised $45 million in June to fuel international growth, bringing its total funds to almost $200 million.The RealReal now has two brick-and-mortar stores in Manhattan and one in Los Angeles that collect as well as sell goods.The San Francisco-based company plans to open more stores this year and beyond and may add to its 11 consignment locations, where customers bring in goods to be evaluated and potentially resold, Wainwright said.While the market is intrigued by its growth, RealReal has yet to make a profit. The company posted a loss of $23 million on revenue of $69 million in the first quarter, compared with a net loss of $14 million on revenue of about $46 million for the same period last year. For all of 2018, it lost $76 million on revenue of $207 million, according to its filings with the U.S. Securities and Exchange Commission.The offering was led by Credit Suisse Group AG, Bank of America Corp. and UBS Group AG, according to the filing. RealReal trades on the Nasdaq Global Select Market under the symbol REAL.(Updates with closing share price in second paragraph)To contact the reporters on this story: Michael Hytha in San Francisco at email@example.com;Olivia Rockeman in New York at firstname.lastname@example.org;Kim Bhasin in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, ;Anne Riley Moffat at email@example.com, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The RealReal is the Undisputed Leader in Second-Hand Luxury Brands Such as Hermès By John Jannarone As the leading online reseller of previously-owned luxury items, The RealReal (ticker: REAL) has a chance to disrupt the industry with a combination of trust, quality, and ease of use that brick-and-mortar shops can’t offer. The question for investors […]
(Bloomberg) -- MINISO Co., a Chinese budget household and consumer good retailer, is planning an initial public offering that could raise about $1 billion, according to people with knowledge of the matter.The company is inviting banks to pitch for roles on the proposed offering, the people said, asking not to be identified because the information is private. The share sale could take place in Hong Kong or the U.S., while the timeline is yet to be decided, the people said.MINISO, founded by Japanese designer Miyake Junya and Chinese entrepreneur Ye Guofu in 2013, designs its products in Japan and has more than 3,500 stores across 80 countries including China, the U.S., Brazil, the United Arab Emirates and Russia, according to its website. The firm posted a revenue of 17 billion yuan ($2.5 billion) in 2018.Tencent Holdings Ltd. and Hillhouse Capital invested 1 billion yuan in the retailer last year in its first external financing round, according to a statement at the time.Deliberations are at an early stage, and details of the offering including the fundraising size could change, the people said. The company doesn’t have any additional information to disclose after announcing in January last year that it plans an IPO, a representative said in an emailed response to Bloomberg.MINISO has been compared with Muji, the minimalist retailer owned by Ryohin Keikaku Co. which offers no-brand, no-logo lifestyle and household goods. In 2016, MINISO and a connected firm were ordered to compensate LVMH for its economic losses in a design infringement lawsuit in Shenzhen, according to a court document. On the other hand, the Chinese company is involved in several copyright disputes in which it accused other domestic retailers of copying its brand and fraud during marketing campaigns.(Updates to add an infringement case in last paragraph.)To contact the reporters on this story: Crystal Tse in Hong Kong at firstname.lastname@example.org;Vinicy Chan in Hong Kong at email@example.comTo contact the editors responsible for this story: Fion Li at firstname.lastname@example.org, Sam NagarajanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Luxury fashion group Chanel, whose star designer Karl Lagerfeld passed away earlier this year, reported higher annual sales and profits on Monday and once again reaffirmed its independence, stating it was not for sale. Chanel said its 2018 revenues rose 12.5% to $11.12 billion, while net profits climbed 16.4% to $2.17 billion. The French fashion house, known for its tweed suits and quilted handbags, enjoyed growth across all of its markets, with Asia-Pacific leading the way with a 19.9% rise in annual sales, compared to a 7.8% rise in Europe and 7.4% in the Americas region.
Kering, owner of brands including Gucci, will tighten its grip on its e-commerce operations, focusing on its own branded sites to sell its luxury products or ventures where it can control its image and client data. Kering had already said it would wrest back control of web operations for brands such as Balenciaga and Alexander McQueen which had been developed by Yoox Net-A-Porter (YNAP) - an online retailer now fully owned by the group's rival Richemont.