Sales of luxury goods are slowing and, given the uncertain outlook, investors are taking profits, reports Pierre Mallevays, founder and managing partner of Savigny Partners.
LONDON, United Kingdom — Mulberry Group Plc Chief Executive Officer Bruno Guillon has some catching up to do. After cutting forecasts twice in his first year at the helm, the 47-year-old CEO is pledging to return the British luxury-goods maker to growth in the next 12 months, even without the help of Mulberry’s celebrated creative director.
LONDON, United Kingdom — British luxury fashion group Mulberry defended its plans to move further upmarket, saying it was crucial to expansion plans in Asia, where local shoppers and outbound tourists are still spending heavily on top-end lines.
Following a flurry of high profile announcements, BoF’s editor-in-chief, Imran Amed, muses on the enduring importance of the creative director.
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.
LONDON, United Kingdom — The Savigny Luxury Index (“SLI”) gained 1.6 percent in March, outperforming the MSCI World Index (“MSCI”) by just half a percentage point. The SLI has been quite volatile over the month with the eurozone crisis and the US debt ceiling taking centre stage again.
LONDON, United Kingdom — Mulberry Group Plc, a British luxury-handbag maker, said full-year sales and profit will miss estimates because of weak business in the last 10 weeks.
Prada 9-Months Net Profit Jumps 50% Amid Continued Strong Demand (Dow Jones) “Chief Executive Patrizio Bertelli said Thursday that the company’s business has continued to grow at a rate that has exceeded its expectations in recent months, as the luxury goods purveyor reported a strong rise in nine-month earnings figures amid resilient demand for ultra high-end goods.” Mulberry sees improvements after first-half
Tight belts take edge off Italian luxury (FT) “Italians have long balked at paying full price for the luxury goods they consider to be their birthright. But as austerity measures hit hard in the home of Prada, Versace and Armani, the quest for bargains and invitations to warehouse sales with rock-bottom prices has reached a new level of frenzy.” Online shoppers ready for busiest day (FT) “Online retailers are
LONDON, United Kingdom — The Savigny Luxury Index (SLI) gained 4.2 percent in October, outperforming the MSCI World Index (MSCI) by more than 6 percentage points. Much anticipated results announcements confirmed that the sector still has strong fundamentals but that the three-year boom is coming to its close. Big news Newsflow pointed to a slowdown in growth for the sector, rather than the meltdown anticipated by the Burberry
Mulberry looks to have its future sewn up (FT) “Bruno Guillon says that what he likes best about British design is its ‘relaxed confidence’. In the coming months, the Mulberry chief executive will need plenty of that himself as the UK-based maker of upmarket handbags grapples with the effects on the fashion industry of global economic weakness.” J.C. Penney ‘Backtracking’ With Discounts, Deutsche Says
Marc Jacobs: A Conversation with Robert Duffy (Port Magazine) “Ask any creative person trying to make a living from design or art what the hardest part of their working life is and they’ll probably tell you it’s the business side of the company that keeps them awake at night… So it must have been a relief for Marc Jacobs when he, 28 years ago, met and befriended Robert Duffy.” Mulberry shares tumble on profit
LONDON, United Kingdom — The Savigny Luxury Index (SLI) lost 6.9 percent in September, underperforming a flat-ish MSCI World Index (MSCI) by nearly seven percentage points. Burberry’s profit warning sent the sector into turmoil mid-month and no amount of good news from the likes of Prada and Michael Kors could lift investors’ spirits. Big news Burberry announced a substantial slowdown in sales growth, with same store sales