THE LUXURY BLOG is all about what it is happening within the Luxury Industry. It is mainly written by the President & CEO of THE LUXURY CONSULTING COMPANY.

KERING, 2015 Results - A very strong fourth quarter &? Solid full-year performances.

2/22/2016

KERING, 2015 Results - A very strong fourth quarter & Solid full-year performances:

Consolidated revenue: €11,584 million, up 15.4% (up 4.6% on a comparable basis)
Luxury activities: €7,865 million, up 16.4% (up 4.1% on a comparable basis)
Recurring operating income: €1,647 million
Luxury activities: €1,708 million, up 2.5%
Net income, Group share: €696 million, up 31.6%
Proposed dividend at €4 per share (unchanged)

Perspectives

A strong performance in Luxury activities, with an outstanding development with SAINT LAURENT, and a new dynamic appearing at GUCCI
Revenue growth fuelled by strong performances from directly operated stores in mature markets
Strong momentum in the fourth quarter
Growth in EBITDA and recurring operating income
Successful repositioning of Puma

François-Henri Pinault, Chairman and Chief Executive Officer, commented: "Kering's solid 2015 results reflect brisk sales and improved operating performances in the second half of the year. These results come amid a more complex economic and geopolitical environment, accentuating the shifts taking place in our sector. We are entering a new phase in our growth: we are perfectly positioned to leverage the strength of our brands and maximize value creation over the long term. We are closely monitoring resource and capital allocation in order to bolster returns. I am confident that the work of our creative teams and the commitment of all our associates will enable us to extend our growth trajectory in 2016 and beyond."

If you are looking to get more information or Strategic & Business Perspectives about the KERING Group and Brands, do not hesitate to contact THE LUXURY CONSULTING COMPANY or to click on this link.

HERMES?pursues Solid Growth in 2015 Sales rose +18% at current exchange rates and +8% at constant exchange rates?vs?2014 !??

2/16/2016

HERMES

Hermès pursues solid growth in 2015 Sales rose +18% at current exchange rates and +8% at constant exchange rates

The Group's consolidated revenues amounted to €4,841 million in 2015, up +18%. At constant exchange rates, growth was +8%, in a challenging environment.

Growth remained solid in the fourth quarter (+15% at current exchanges rates and +7% at constant exchange rates), despite the impact of the recent events in France and, to a lesser extent, in Europe.

Geographical Growth 2015 vs 2014 - Published & Constant Rate

Europe +10.1% | +8.7%
Asia (including China) +21.4% | +8.5%
America +24.3% | +6.8%

Product Categories Growth 2015 vs 2014 - Published & Constant Rate

Leather Goods & Saddlery +23.5%|+12.6%
Ready to Wear & Fashion +17.9% | +7.8%

Those both categories represent 70% of the Total Sales, the rest being Silk&Textiles, Watches & Jewelry, Perfumes, Home products & Table wares.
Are include in the total of the Sales but not detailed here John Lobb, Saint-Louis, Puiforcat and Shang Xia.

If you are looking for more Information about HERMES Group or the Global Sector of the Luxury Industry, please do not hesitate to contact us.

L’OREAL 2015 Annual Results, +12.1% Increase !

2/15/2016

L’OREAL 2015 Annual Results, +12.1% Increase !
STRONG SALES GROWTH: +12.1% BASED ON REPORTED FIGURES
FURTHER INCREASE IN OPERATING MARGIN
STRONG GROWTH IN EARNINGS PER SHARE*

Sales: 25.26 billion euros
- +12.1% based on reported figures
- +4.9% at constant exchange rates
- +3.9% like-for-like
Operating profit: 4.388 billion euros, representing 17.4% of sales
Earnings per share*: 6.18 euros, an increase of 15.7%
Dividend**: +14.8% at 3.10 euros

Commenting on the annual results, Mr Jean-Paul Agon, Chairman and CEO of L'Oréal, said:
"In a year marked by a worldwide economic slowdown and increased international volatility, L'Oréal achieved strong growth in 2015, supported by a positive monetary effect, and outperformed the market in three of its four Divisions”

Looking to know more about L’OREAL, do not hesitate to contact us for specific analysis made by our Practice FRAGRANCES & COSMETICS

LVMH - LOUIS VUITTON MOET HENNESSY - 2015 ANNUAL RESULTS

2/5/2016

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €35.7 billion in 2015, an increase of 16% over the previous year. Organic revenue growth was 6%. The Group turned in strong momentum in Europe, the United States and Japan while other Asian countries demonstrate contrasting tendencies.
In the fourth quarter, revenue increased by 12% compared to the same period of 2014. Organic growth was 5%.
Profit from recurring operations reached €6 605 million in 2015, an increase of 16%, to which all business groups contributed. Group share of net profit was €3 573 million. Excluding the capital gain realized in 2014 following the distribution of Hermès shares, Group share of net profit increased by 20%.

THE? OVERALL STATE OF THE WORLD ECONOMY? IN 2016

12/11/2015

THE OVERALL STATE OF THE WORLD ECONOMY

In 2016: Expect accelerated growth

We expect global growth to accelerate next year to 3.4%, from 3.1% this year.

We will soon publish our specific analysis for the Luxury Industry.

On the General Economy, the growth “impulse” for 2016 is likely to be more evenly distributed than in 2015, when developed markets took much of the burden of accelerating growth.

We expect around half of the rise in global growth next year to be distributed across developed markets, with the other half from emerging markets, in particular due to the ongoing pickup in Indian output, and stabilization in Brazil and Russia. China’s slowdown will represent the single biggest drag on global growth relative to the previous year.

Key risks to global growth

The countries and regions driving the expected acceleration in 2016 growth are relatively broadly spread. As such, the risks to this forecasts are relatively broadly spread too.

As the key potential risks to our forecast of a global growth acceleration for 2016, we see some combination of:

. US consumption and investment suffering as a result of higher interest rates.
. A renewed political crisis in the Eurozone affecting consumer confidence.
. Japan’s economy continuing to fail to respond to stimulus measures.
. China’s manufacturing sector slowing more rapidly, and damaging consumption, leading to a faster than- expected slowdown in overall growth.
. Commodity prices continuing to slide, affecting exporting nations, while importing consumers do not spend their savings.
. A financial crisis in the emerging markets resulting from escalating capital outflows.
. A geopolitical event which affects confidence, potentially involving Russia and the Middle East.

(Info: TLCC & HSBC & INTERNATIONAL MONETARY FUND)

LVMH - LOUIS VUITTON? 18% increase - Organic 6%- in revenue for the first nine months of 2015 –

10/16/2015

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded an 18% increase in revenue, reaching €25.3 billion, for the first nine months of 2015. Organic revenue grew 6% compared to the same period in 2014.

With organic revenue growth of 7% for the third quarter, the trend remains comparable to that recorded in the first half of the year. The Group continues to deliver strong growth in Europe and the United States, and is seeing an acceleration in Japan.

By Category:

The Wines & Spirits business group recorded organic revenue growth of 7% in the first nine months of 2015 with a notable acceleration in the third quarter. Champagne volumes experienced growth of 5% over the period driven by good performance in its main markets. Hennessy cognac, whose volumes increased 12%, benefited in the third quarter from a strong rebound in shipments to China and continued excellent momentum in the United States. Other spirits, Glenmorangie and Belvedere, continue to grow rapidly.

The Fashion & Leather Goods business group recorded organic revenue growth of 5% for the first nine months of 2015. Louis Vuitton continued its growth and displayed strong creative momentum in all of its collections. Leather goods in particular saw great success with the creativity around Monogram and the craftsmanship on leather. The store evolution, the opening of the house at Asnières on the same site as Louis Vuitton’s historic workshop, marked the third quarter. Fendi generated strong revenue growth thanks to the excellent performance of all its products. Loro Piana continued the qualitative development of its store network. Céline, Givenchy and Kenzo experienced sustained revenue growth. Marc Jacobs and Donna Karan continued the repositioning of their collections.

The Perfumes & Cosmetics business group recorded organic revenue growth of 7% for the first nine months of 2015. Parfums Christian Dior continued to benefit from the momentum of its iconic fragrances J’Adore, Miss Dior and Dior Homme, and launched, with great success, its new men’s fragrance Sauvage. The make-up segment also contributed to the excellent performance of the brand thanks to its latest innovation Dior Addict Lipstick. Guerlain was boosted by the growing success of its perfumes and its premium skincare ranges Abeille Royale and Orchidée Impériale. Benefit, Fresh and Make Up For Ever all enjoyed excellent performance.

The Watches & Jewelry business group recorded organic revenue growth of 10% for the first nine months of 2015. Bvlgari performed remarkably well driven by all product categories and all regions of the world. Hublot grew rapidly and increased its production capacity with the opening of its second production facility in Nyon, Switzerland. TAG Heuer continued the development of its core offering. Its new smartwatch, made in partnership with Google and Intel, will be unveiled in November.

The Selective Retailing business group recorded organic revenue growth of 5% for the first nine months of 2015. DFS continued to navigate an uncertain geopolitical and currency context in some tourist destinations. Sephora continued to gain market share in all its markets. Comparable store revenue growth was particularly strong. Online sales are rapidly increasing in all regions, confirming Sephora’s leadership in the digital and mobile space.

Outlook
In an uncertain economic and financial environment, LVMH will continue its strategy focused on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2015.

KERING 2014 Results

2/17/2015

François-Henri Pinault, Kering's Chairman and Chief Executive Officer, commented:

"The dynamic sales growth and increase in operating income of the Group's Luxury activities confirm the relevance of our multi-brand model and demonstrate our ability to unlock the potential of each our brands, exploit their complementarity, and nurture their development.
The transformations carried out in 2014 from both an organisational and operational standpoint have allowed us to step up our responsiveness, and achieve a greater degree of integration and specialisation of our activities. The Group's unique characteristics, as expressed in its strategic vision and management culture, are a key asset to deliver organic growth, our number one priority in 2015, in a macroeconomic and currency environment which remains unsettled. I am confident in the Group's ability to achieve sustainable profitable growth while focusing in the shorter term on our brands' cash flow generation.”

LVMH 2014 Results

2/3/2015

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €30.6 billion in 2014, an increase of 6% over the previous year. Organic revenue growth was 5%. Revenue in all business groups increased with the exception of Wines & Spirits which continued to be affected by the destocking of distributors in China. The Group maintained strong momentum in the United States. Europe demonstrated good resilience despite the economic environment, while Asian countries displayed mixed trends.

Bernard Arnault, Chairman and CEO of LVMH, said: “The 2014 results confirm the capacity for LVMH to progress despite economic and currency uncertainty. Revenue and net profit reached new record levels. Commitment to excellence, a passion for quality and our capacity to innovate underpin our growth momentum and are all values epitomised by the Fondation Louis Vuitton and its emblematic building inaugurated in October 2014. The year was also marked by the arrival in the Group of Loro Piana, which saw a good performance. LVMH reached an agreement with Hermès and disposed of its stake in this company, in the form of a distribution to our shareholders. In 2014, all our Maisons demonstrated outstanding flexibility. By adapting their strategies to global changes and by continuing to evolve, they have shown the creativity and entrepreneurship that drive them forward. In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen our leadership in the world of high quality products.”

HUGO BOSS, Strategic Growth for 2010

11/19/2014

Paris, November 19, 2014. HUGO BOSS will be presenting its strategic growth plan for the period through 2020 at today's Investor Day in Paris.

“Considerable sales and profit increases underline the success of our strategy in the last years,” says Claus-Dietrich Lahrs, CEO of HUGO BOSS AG. The initiatives introduced today develop this strategy further and secure profitable growth. We will elevate our core brand in both menswear and womenswear. In doing so, we offer customers an attractive brand experience across all touch points.”

Looking forward over the next few years, HUGO BOSS will strive to achieve average sales growth in the high-single digits, despite the increasingly challenging macro-economic and industry-specific environment. The growth plan envisages an increase in the operating margin to 25%.

RICHEMONT, Interim ?Mid Year 2014 Results.

11/17/2014

RICHEMONT has published on Nov 17, its interim mid year results 2014.

Chairman’s commentary
Johann Rupert Chairman
Compagnie Financière Richemont SA Geneva, 7 November 2014

"Richemont results for the first half were fairly resilient overall, given the volatility of the environment that affected our clients and retailer partners in all regions, with the notable exceptions of the Americas and Middle East. Worth highlighting is the resilience of the jewellery category where sales rose by 10 % at constant exchange rates.

In this difficult environment, our Maisons benefited from successful product launches and, in certain markets, price increases. Lower precious material prices and cost containment measures helped mitigate subdued sales and the overall negative impact of foreign exchange rates. The decline in operating profit was limited to 4 %.

Net profit decreased by 23 %. Together with the lower operating profit, this reduction is explained by the substantial € 239 million mark-to-market charge associated with our well- established hedging programme. This compares to a gain of € 127 million in the comparative period.

Cash flow from operations remained solid, reflecting strict working capital management by the Maisons. Richemont has an exceptionally strong balance sheet with net cash of € 4.3 billion at 30 September 2014.

In the month of October, sales increased by 4 % at actual exchange rates. Sales in the month were 1 % lower at constant exchange rates, partly reflecting the exceptional level of high jewellery sales in the Asia Pacific region during the comparative period. In geographic terms, the volatile sales pattern seen during the six-month period continued into the month of October with growth in the Americas, Europe and the Middle East, but lower sales in the Asia Pacific region and Japan. Wholesale sales outperformed retail in certain regions.

As in previous challenging periods, cost control measures have been put in place to preserve the Group’s cash flows. At the same time Richemont’s Maisons will continue to pursue their differentiated marketing strategies and planned investment programmes.

The external environment remains difficult ahead of the holiday trading period. Taking a longer-term view, the strength of the Maisons, the quality of our products, the skills of our artisans and the financial strength of Richemont means we can look forward positively. We remain confident that demand for high quality products will continue to grow in the global market. "

Financial highlights

Sales grew by 2 % to € 5 430 million and by 4 % at constant exchange rates
Performance varied across regions and product lines
Operating profit decreased by 4 % to € 1 311 million, reflecting volatile trading conditions and unfavourable currency movements

Operating margin declined by 160 basis points to 24.1 %
Profit for the period declined by 23 % to € 907 million, reflecting primarily unrealised currency hedging losses
Solid cash flow from operations of € 1 008 million

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