European Luxury Goods Correspondent
Astrid's Feed
May 22, 2015

Richemont not planning further price changes for now

PARIS, May 22 (Reuters) – Cartier-owner Richemont
said it was not planning any further price adjustments in the
immediate future as it posted an 8 percent drop in April sales
at constant exchange rates and revenue remained flat in the
first two weeks of May.

The world’s second largest luxury group, which also owns
jeweller Van Cleef & Arpels and watchmakers Piaget and IWC, said
on Friday trading remained difficult in its big markets of Hong
Kong and Macau.

May 12, 2015

UK online fashion retailer Farfetch snaps up London’s Browns

PARIS, May 12 (Reuters) – Farfetch, the online fashion
retailer valued at $1 billion after a financing round earlier
this year, has snapped up London’s upmarket retailer Browns for
an undisclosed sum in a cash and shares deal.

Pressure is mounting on Internet retailers, brands and
bricks-and-mortar boutiques to forge alliances after Yoox
agreed to buy Richemont’s Net-a-Porter in an
all-share deal to create an industry leader with combined sales
of 1.3 billion euros ($1.4 billion).

Apr 30, 2015

Clessidra buys control of Italian fashion label Cavalli

MILAN/PARIS, April 30 (Reuters) – Italian private equity
fund Clessidra acquired control of fashion house Roberto Cavalli
on Thursday for an undisclosed sum, concluding one of the
longest running courtships in the luxury goods industry.

Clessidra, which has invested in jeweller Buccellati, held
discussions with Cavalli back in 2008 and 2009 and since then,
talks had been on and off with other private equity firms
including Permira, Investcorp and Russia’s VTB Capital.

Apr 29, 2015

Japan keeps Hermes sales growth on target

PARIS, April 29 (Reuters) – French luxury goods maker Hermes
posted an 8 percent rise in first-quarter sales in
line with its full-year and medium-term goal on Wednesday,
helped by strong growth particularly in Japan.

The maker of the Birkin and Kelly handbags said sales in its
own stores rose 10 percent at constant currencies, with foreign
exchange fluctuations boosting revenue by 103 million euros
($113 million).

Apr 23, 2015

Analysis – Online store merger prods luxury goods makers towards Internet

PARIS (Reuters) – The merger of the world’s two biggest online fashion stores, Net-a-Porter (NAP) and Yoox, sends a warning to luxury brands to embrace the Internet with more vim after years of resistance.

Top brands such as Prada and LVMH’s Christian Dior still baulk at the idea of selling clothing online as well as through their plush boutiques.

Apr 23, 2015

Online store merger prods luxury goods makers toward Internet

PARIS (Reuters) – The merger of the world’s two biggest online fashion stores, Net-a-Porter (NAP) and Yoox, sends a warning to luxury brands to embrace the Internet with more vim after years of resistance.

Top brands such as Prada and LVMH’s Christian Dior still baulk at the idea of selling clothing online as well as through their plush boutiques.

Apr 22, 2015

Richemont warns of profit drop on derivative losses

PARIS, April 22 (Reuters) – Cartier-owner Richemont
has warned of a sharp downturn in yearly earnings due to a
worse-than-expected performance and investment losses on its 5.4
billion euros ($5.8 billion) cash pile, playing down the drop as
due to non-cash accounting factors.

However some analysts said there were also signs of an
underlying deterioration at the world’s No. 2 luxury group,
whose shares were down 1.6 percent by 0750 GMT.

Apr 21, 2015

Kering’s Gucci posts bigger-than-expected first-quarter sales drop

PARIS (Reuters) – Kering’s (PRTP.PA: Quote, Profile, Research, Stock Buzz) Gucci posted a steeper-than-expected decline in first-quarter sales on Tuesday, which it blamed on a transition period as its flagship brand works to regain momentum under a new creative and management duo.

Gucci, which accounts for nearly 60 percent of Kering’s operating profit, saw comparable sales fall nearly 8 percent in the three months to March 31, while analysts had expected a drop of 3-6 percent.

Apr 21, 2015

Kering’s Gucci posts bigger-than-expected Q1 sales drop

PARIS, April 21 (Reuters) – Kering’s Gucci posted
a steeper-than-expected decline in first-quarter sales on
Tuesday, which it blamed on a transition period as its flagship
brand works to regain momentum under a new creative and
management duo.

Gucci, which accounts for nearly 60 percent of Kering’s
operating profit, saw comparable sales fall nearly 8 percent in
the three months to March 31, while analysts had expected a drop
of 3-6 percent.

Apr 15, 2015

Burberry could adjust prices to offset currency swings

PARIS (Reuters) – British luxury goods maker Burberry (BRBY.L: Quote, Profile, Research, Stock Buzz) will adjust prices in response to currency fluctuations and similar moves by rivals, it said on Wednesday as it posted a forecast-beating 9 percent rise in second-half revenue.

Several luxury brands including Chanel, Richemont’s (CFR.VX: Quote, Profile, Research, Stock Buzz) Cartier and Patek Philippe have moved to harmonize their prices globally following the rise of the U.S. dollar, the weakness of the euro and the surge in the Swiss franc earlier this year.

    • About Astrid

      "Astrid is based in Paris and leads the team of correspondents across Europe who cover luxury and fashion. Previously, she was TMT correspondent. Before joining Reuters, she wrote for the Financial Times as UK companies news correspondent and before that as Moscow correspondent. She started her career in journalism in the mid-1990s as a business reporter for the Moscow Times, an English-language daily published in the Russian capital."
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