Market sentiment has turned back in favour of the luxury sector, driven by solid second quarter results, reports Pierre Mallevays of Savigny Partners.
NEW YORK, United States — Coach Inc., the largest U.S. luxury handbag maker, said fiscal fourth-quarter profit fell 12 percent as discounts and weak handbag sales hurt revenue in North America.
NEW YORK, United States — Coach Inc. will reduce its departing chief creative director Reed Krakoff’s annual bonus by $3 million if a binding agreement for the sale of his label isn’t reached by July 29.
The China Edit is a weekly curation of the most important fashion business news and analysis from and about the world’s largest luxury market.
NEW YORK, United States — Coach Inc. has fought for relevance in recent years by introducing bling-laden products to attract younger shoppers and then bringing back more classic lines for its long-time customers. Yet the company remained true to its roots: finely crafted leather bags.
LONDON, United Kingdom — Louis Vuitton is losing ground as the world’s most valuable luxury brand as competitors including Gucci and Prada gain, a new research report shows.
HONG KONG, China — Armed with empty suitcases and same-day return tickets, an army of mainland Chinese is descending on suburban outlet shopping malls and international fashion chains in Hong Kong, turning cheap into the new chic as luxury falls out of favour.
LONDON, United Kingdom — The Savigny Luxury Index (“SLI”) lost 1.5 percent in April, underperforming the MSCI World Index (“MSCI”) by almost two percentage points. Luxury spending in Europe has been hit by a drop in tourist demand, as well as price increases by brands seeking wider margins. The unusually cold weather, particularly in March, also contributed to weak demand for Spring/Summer ready-to-wear collections.
NEW YORK, United States — Coach Inc. reported fiscal third-quarter results Tuesday that beat Wall Street expectations as the luxury handbag maker saw sales increase in its flagship North American market, as well as overseas. The New York company also said it's raising its dividend by 15 cents annually to $1.35 per share.
NEW YORK, United States — After more than 16 years as president and executive creative director of US accessories brand Coach, Reed Krakoff has announced that he will not renew his contract with the label, which is set to expire in June of 2014. The company has started the hunt for his successor. Krakoff is said to be leaving to focus on his own high-end label of sportswear-inspired apparel and accessories, Reed Krakoff, which he
NEW YORK, United States — Coach’s valuation and cash generation -- enough to give it the third-highest free cash flow yield among peers -- could attract private-equity firms, Atlantic Equities LLP said. LVMH Moet Hennessy Louis Vuitton SA and PPR SA may be among suitors drawn to its margins and the chance to expand Coach beyond the U.S. and Japan
LONDON, United Kingdom — The Savigny Luxury Index (“SLI”) gained 2.7 percent in February, underperforming the MSCI World Index (“MSCI”) by over one percentage point. The SLI lost ground at the beginning of the month following the questions raised on sector growth by LVMH’s annual results announcement. Big news • Most analysts felt that LVMH’s organic growth numbers for 2012 were a bit lower than expected. This, combined with Mr.
NEW YORK, United States — Coach Inc. shares rose 5 percent on Wednesday to $48.90 after a DealReporter article said there were rumours among investment bankers that the leather-goods maker was exploring a sale of the company. A Coach spokeswoman said the company does not comment on speculation or rumours. A share price of $48.90 would give Coach a market value of $13.7 billion. DealReporter cited two bankers as saying there were rumours Coach was exploring a sale, and a third banker who said Coach was rumored to be exploring strategic options, but was unable to provide specific information. Last month, Coach reported disappointing quarterly earnings and has faced growing competition from companies like Michael Kors Holdings Ltd. Two weeks…