Savigny Luxury Index January 2012 | Source: Savigny Partners

LONDON, United Kingdom — It’s been a strong start to 2012 for the luxury good sector, as equity markets made significant gains in January.

Big news

• The Savigny Luxury Index (‘SLI’) outperformed the benchmark MSCI World Index (‘MSCI’) by 6 percentage points, gaining 11 percent over the month of January, relative to an increase of close to 5 percent for the MSCI.

• Investors have been exposed to continued good news.  Indeed almost all luxury groups have announced outstanding Christmas trading and 2011 year-end results driven mainly by growth in Asia excluding Japan.

• However, uncertainties have not dissipated.  Although the US market seems much better, Europe remains a concern, with sector sales highly dependent on tourist spending.

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Benetton Unhate campaign | Source: Foto Telegraf

Benetton to make decision on delisting (FT)
“The Benetton family will decide at a board meeting on Wednesday whether to delist the Italian knitwear group known for its brightly coloured jumpers after the company posted another plunge in profits as it struggles to compete with Inditex and H&M.”

Luxury Companies That Can Bring You Closer to the Good Life (Money Morning)
“A lot of consumers are hurting right now, but you wouldn’t know that looking at the earnings of major luxury companies. Many luxury companies like LVMH Moet Hennessey Louis Vuitton, Burberry, Hermès, and Coach Inc had a stronger-than-expected 2011 campaign.”

Bright Young Things (Vogue)
“The British Fashion Council has announced the launch of International Fashion Showcase – a platform for international emerging designers – which will take place during London Fashion Week. Nineteen embassies and cultural institutes across London will display work from over 80 rising designers, spanning the world from Belgium to Botswana.”

The Finnish Fashion Blogger Who Landed A Deal With Diesel (Business Insider)
“Sandra Hagelstam, 24, is the founder of the hot fashion blog 5inchdesandup.com. She started blogging to create a daily log of what she wears… ‘(The blog) has opened up doors for me I never would have imagined in terms of being able to design my own collection and collaborate with others.’”

Divided they stand: the new extremists (Telegraph)
“This may look like a classic case of Roundhead versus Cavalier. Or Minimalist meets Maximalist. But that’s too simplistic.Neither Mary Katrantzou or Osman Yousefzada can be that easily pigeonholed.”

Thanksgiving Weekend Sales Increase to Record $52.4 Billion (Bloomberg)
“U.S. retail sales during Thanksgiving weekend climbed 16 percent to a record, as shoppers flocked to stores earlier and spent more, according to the National Retail Federation… The number of people shopping online and at stores on Thanksgiving Day jumped to 28.7 million from 22.2 million last year. About a quarter of all shoppers visited stores by midnight of Black Friday, up from just 3.3 percent two years ago.”

Coach to list shares in Hong Kong (BBC News)
“US luxury leather goods firm Coach plans to list shares in Hong Kong on Thursday, as it seeks to raise its profile among Asian consumers… Coach said the move ‘would demonstrate Coach’s commitment to, and focus on, Asia’. It is the latest international brand to list in Hong Kong after successful flotations by Italian fashion house Prada and luggage maker Samsonite.”

European Luxury Group Calls on India to More Than Halve Duties (Bloomberg)
“The group that represents luxury- goods companies and other creative businesses in Europe called on India to reduce duties on their products by more than half. A ‘significant’ cut in duty from more than 34 percent is necessary for full foreign ownership of single-brand stores to be effective, the European Cultural and Creative Industries Alliance, or ECCI, said.”

Newspaper launches online luxury store (Inside Retail)
“The International Herald Tribune has teamed up with a seasoned online fashion retailing expoert to launch its own online store to sell products to its readers. The IHT – the global edition of The New York Times – has partnered with Couturelab.com to launch a luxury goods store IHTGiftStore.com.”

The world of Louise Wilson, fashion professor (Telegraph)
“Louise Wilson OBE, 49, is the director of the Central Saint Martins fashion MA course, whose former students include Alexander McQueen, Hussein Chalayan and Mary Katrantzou. Ninety per cent of her students either go on to work for a fashion house or start their own label, and she has been described as the most influential person in British fashion.”

Savigny Luxury Index October 2011 | Source: Savigny Partners

LONDON, United Kingdom — The market roller coaster continues, but the luxury sector has once again outperformed the general market. While questions remain about the ability for China to sustain the growth of luxury brands, investors seem to be on side again, at least for now. Analysts remain divided about the future of the luxury sector in 2012, amid much macroeconomic uncertainty.

Big news

• Renewed confidence in the sector prompted the SLI to recover the ground it lost from the mass sell-off in September.  The SLI posted an impressive increase of 21.9 percent over the month of October, versus an increase of 7 percent in the MSCI.

• Positive newsflow has boosted the sector, with LVMH, Burberry, PPR and Coach’s quarterly results beating market expectations.  Swatch announced that September was a record month for the group and that 2011 promised to be its best year ever.

• Investor concerns over a slowdown in China were addressed as all major sector players confirmed the Chinese market’s resilience.

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Black Crown Diamond watches by Pandora | Source: Pandora

Pandora loses its shine after profits warning (FT)
“Shares in Pandora, best known for the charm bracelets that it sells in 55 countries, fell 65 per cent after it slashed its full-year earnings outlook and parted company with its chief executive less than a year after it came to market in one of the biggest IPOs in Europe in 2010.”

Coach profit boosted by sales, margins a concern (Reuters)
“Upscale handbag maker Coach Inc saw margins decline in its fourth quarter, hurt by higher labor costs, sending its shares down in premarket trading on Tuesday, despite earnings that beat analyst expectations… Shares of New York-based Coach have risen 18 percent since the beginning of the year, while the S&P 500 index has climbed just 2.3 percent.”

An Interview with Margareta Van Den Bosch (Huffington Post)
“Since joining Hennes & Mauritz (better known as H&M) in May 1987, this designer has supervised all the collections that reach some 2,000 shops in 38 countries on a daily basis, overseeing the creative direction of a richly diverse and profitable fashion empire that in 2009 alone employed 76,000 people and generated sales worth €13 million.”

Colourful characters (FT)
“This summer, risk has moved from the financial world to the fashion world courtesy of “colour-blocking” for men… ‘Recent seasons have seen a trend towards austerity in the luxury market because of the economic crisis,’ says Elisabetta Canali, communications director at Canali.”

Caesar Stovall, Army Medic Turned Givenchy Model (On the Runway)
“Then, in one of those twists of fate that abound in fashion, it was Mr. Stovall, the total unknown, who was chosen. Before he realized what was happening, he was walking a runway in Paris in last month’s men’s wear presentations. He was wearing an olive drab suit reminiscent of his military uniform, except that the bottom half was a skirt.”