Recessionary designs, Rochas’ clothes, Gap’s boss takes pay cut, Hermes holds steady…

Lanvin A/W '09, courtesy of the New York Times

Two Words for Fall: Toughen Up (New York Times) The recession could turn out to make designers better. Do You Want Clothes to Go With That Perfume? (WSJ) At Rochas, there are now clothes that come with its legendary scent. Gap boss takes pay cut (Drapers) “Gap’s chairman and chief executive Glenn Murphy will take a 15% salary cut as part of plans to cut costs.” Hermès Net Up 0.8 Percent (WWD) Hermès post steady sales

…Continue Reading

Adidas profits, Brazilians and beachwear, Ethical luxury, Hermès shares jumps

Adidas Profits Leap 151 Percent (WWD) Adidas’ net profits is up 151% due to lower marketing expenses. (Subscription required) Brazilians decide beach culture should help capture retail dominance (IHT) With the launch of a beachwear fashion week in October 2008, Brazilian brands are beginning to find their place in the international swimwear market. Ethical Luxury: Could the Luxury Industry Be Headed Back to Its Roots? (The

…Continue Reading

Hermès’ resilience, Bally’s e-commerce, Ralph Lauren sales down, LVMH holding steady

Herems store in London, photo courtesy of

Hermès shows resistance in luxury downturn (The Globe and Mail) “We have seen a slowdown in sales growth since October but we are still growing,” says Hermès finance director Mireille Maury. Bally to Launch E-Commerce (WWD) Bally, the Swiss luxury brand joins in on the e-commerce game. (Subscription required) Polo Ralph Lauren’s Net Falls 6.6% (WSJ) Ralph Lauren Q3 earnings fell 6.6%, and plans to cut back on their

…Continue Reading

Luxury Outlook | Hermès continues to defy gravity

Savigny Luxury Index Since Jan 1, 2007, Courtesy of Savigny Partners

LONDON, United Kingdom — It’s all been a bit doom and gloom around here for months now, and I’m afraid the latest Savigny Luxury Index (SLI) does not deviate from this theme. Valuation multiples have dropped from a peak of 13x EBITDA (operating profit) in June 2007 to 8.5x EBITDA just before Christmas, effectively wiping billions off of the market capitalisation of luxury stocks. But there is still some good news for

…Continue Reading

Sales rise at Hermes, US same store sales plummet, Thé Vert scent, Cashing in Obama’s dress, Brands & Bollywood

Hermes Q3 Sales Rise 4 Percent (WWD) Though Hermes Q3 sales rose, the French luxury brand sees a tough road ahead US Stores reporting double-digit sales declines (IHT) Neiman Marcus reported that same-store sales were down 27.6 percent in October. Scent Notes | Eau Parfumée au Thé Vert by Bulgari (NY Times) The New York Times traces the history of Eau Parfumée au Thé Vert, Bulgari's wildy successful scent. Cashing in on The Sasha Obama Connection (WSJ) Gerson & Gerson plans to cash in on the dress Sasha Obama wore on election night. Media brands look to Bollywood movies to promote their product (Live Mint) In India, the upcoming movie "Dostana could be the beginning of a trend where brands…

…Continue Reading