PARIS, France — Fnac, the French DVD, books and video-games chain, is seen falling after being spun off this week from Gucci owner PPR SA as investors who hold PPR for luxury brands such as Gucci sell stock in the retailer.
HONG KONG, China — Prada SpA, the Italian luxury-goods maker, fell the most in almost 12 months in Hong Kong trading after reporting first-quarter profit growth that decelerated to the slowest pace in at least a year.
PARIS, France — PPR SA, the French owner of Gucci trying to spin off its Fnac book and electronics stores, is seeking a valuation of about 400 million euros ($519 million) for the business, people with knowledge of the process said.
FLORENCE, Italy — Luxury-goods makers are adapting as demand for premium products aligns with the broader economy for the first time in a decade, the chief executive officer of Gucci Group said.
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.
HERZOGENAURACH, Germany — Puma SE revised its outlook for 2013 revenue and profit lower after reporting first-quarter earnings that trailed analysts’ estimates, saying weaker consumer demand in Europe hurt its business.
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.
SHANGHAI, China — With flagging sales in their mainland stores and increasingly price savvy consumers, luxury companies are taking a leaf out of casinos' play books by offering junkets to wealthy Chinese clients eager to splurge in their Hong Kong stores.
BoF editor-in-chief Imran Amed recaps the week in the business of fashion.