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Salvatore Ferragamo said revenues fell 7.6 percent to EUR 1.16 billion in 2023, with the Italian luxury firm citing a "softening luxury demand," especially in the second part of the year. By region, Asia Pacific registered a 13.1 percent decrease in net sales during 2023. Sales in the region in the fourth quarter did, however, gain 2.2 percent, with wholesale recording growth and retail sales in Greater China up double-digits. In 2023, the Japanese market saw sales fall 12.6 percent, with sales down 6.5 percent in the fourth quarter. FULL ARTICLE: https://lnkd.in/gJxYjXbF #retailinasia #retailnews #Ferragamo #luxury #salesinasia

Italian luxury fashion house #Bulgari plans to add to its network of stores in mainland China as it bets on “significant” sales via its online channels to fuel growth. “We have already a very strong position in China, but we believe that we have an opportunity to take the brand to a much bigger level,” CEO Jean-Christophe Babin said at the China International Import Expo (CIIE) in Shanghai. Babin believes the luxury market may recover in the next 24 months as the country’s economy bounces back. #china #luxurygoods #consumer #slowdown

French luxury house Hermès has reported a 16 per cent growth in revenue to $14.46 billion for last year, with net profit surging 28 per cent to $4.64 billion despite global demand for luxury goods slowing down. The group’s sales in America and Europe increased by 21 per cent and 20 per cent respectively, and in Asia (excluding Japan), by 19 per cent with sales growth in all the region’s markets. Sales in Japan surged 26 per cent. Inside Retail US

LVMH Faces Setback as Q2 Sales Fall Short of Analyst Projections LVMH, the world's leading luxury group, experienced a 3.86% decline in its shares on Wednesday following the announcement of second-quarter sales that failed to meet analyst expectations. The company's sales amounted to 20.98 billion euros, falling short of the projected 21.6 billion euros. Notably, sales in Asia (excluding Japan) saw a 14% drop in the second quarter and a 10% decrease in the first half of the year compared to the same periods in 2023. Conversely, sales in Japan surged by 57% in the second quarter and 44% in the first half, largely driven by purchases made by Chinese travelers. The company's wine and spirits division suffered a 5% decline in revenue, while the watches and jewelry division also experienced a 4% decrease in the second quarter. The notable decrease in European, United States, and Chinese consumer demand within the wines and spirits sector, and China's challenging market landscape in particular, contributed to these setbacks. This mirrors similar difficulties faced by other luxury brands, such as Hugo Boss and Burberry, which have all reported weaker performances this year. # Thank you Elena Rossi for your submission!

JUST IN: Luxury giant LVMH reports softer sales growth in Q1, influenced by declining Chinese demand and faltering champagne sales. While Asia saw a 6% decline in sales, the US and Europe experienced modest growth. Despite challenges, LVMH remains resilient, outperforming competitors like Kering. The pandemic's end slows industry growth, with forecasts down to 1-4% in 2024 from 8-10% in 2023. LVMH's shares rose by 2%, with its fashion and leather goods division seeing a 2% organic growth. Chinese clientele still drive demand, but growth normalizes. The watches and jewelry division, including Tiffany, faces challenges, especially in the US. Overall group sales grew 3%, although currency effects dampened reported numbers. Wine and spirits division, particularly champagne sales, suffered, reflecting broader market trends. #LVMH #luxury #LuxuryMarket #SalesTrends #PandemicImpact 🛍️📉

🤽♀️🏊♀️LUXURY UNDERWATER: LVMH TAKES A DIVE 🤿 🌊 🗼🇫🇷 AS PARIS OPENS the Olympic Games, their largest FR company gives praise to Tokyo for rescuing Asian results. 🇨🇳✈️ CHINA LUXURY SHOPPERS (and resellers) hopped over to Japan to buy trinkets priced in JPY. Asia Region declined by 14% (ex Japan) as LVMH posted a scant 1% organic sales growth. 2️⃣ LVMH IS EUROPE'S second largest company by market cap (340bn euro) a Goliath of all things indulgent. 🅰️ 🛒"ASIAN SHOPPER" BIG BETS in 2015, fizzled in 2021-2023. Others similarly stumbled, especially those tilting toward Duty Free Shopping (DFS) just as the "Asian Traveller" stayed home. 🥷👜 LITTLE DISCUSSED IS THAT “exceptional H1 growth” in Japan was boosted by "ninja resellers" who may easily trans-ship goods back home in what is known as "luxury arbitrage". 💱  FX DIFFERENTIALS incentivize shopping abroad, reselling at home. Japan's bent for fashion/leather, perfume/cosmetics, and watches/ jewelry is durable. Bright side of JPY collapse. € 💶 UNDAUNTED, LVMH just splashed out 3.6bn euros on CRE, events and promotion. LVMH pour toujours et pauvre riche aussi. https://lnkd.in/gXxbgnWa #arbitrage #asianshopper #japan #china #LVMH #resellers #luxury #recession

#Bulgari UK revenue dips 10% despite watch sales boost: #Bulgari’s UK operations suffered a 10% drop in turnover last year, latest accounts filed with Companies House reveal. The #luxurygoods company earned £54.6m in UK sales last year, compared to £60.3m in 2022. The #LVMH-owned #business saw a £3.2m loss after tax last year, compared to a £3.5m profit in 2022, marking a near-200% […] The post Bulgari UK revenue dips 10% despite watch sales boost appeared first on WATCHPRO.

The world's top luxury brands are feeling the impact of China's economic slowdown and crackdown on displays of wealth. LVMH, the largest luxury goods group, reported a 14% drop in sales in Asia, including China. Other brands like Burberry, Swatch, and Richemont also faced significant sales declines. The economic downturn and government actions against flaunting luxury online have contributed to the decrease in consumer spending on high-end goods. This trend is challenging for the luxury sector, which relies heavily on Chinese shoppers. #ThesocialTalks #LuxuryGoods #ChinaEconomy #RetailSales #LVMH #Burberry #Swatch #Richemont #EconomicSlowdown #BusinessNews

The Business of Fashion this has long been an issue. To rememdy there needs to be controlled brand distribution notably through wholesale as well as closing in the premiums between markets, this ensures that it is not attractive for the consumer to buy elsewhere. Clear brand direction and adherence to the strategy is required - it means a period of controlled supply, review of accounts to allow for a limited flow of goods and results in elevated AUR’s and protecting the brand image not only for today but for future growth. A commitment that understanding where your goods are surfacing will drive desirability and longer term brand equity.