European Luxury Goods Correspondent
Astrid's Feed
Mar 3, 2015

New Tag Heuer boss replaces top managers in turnaround drive

PARIS (Reuters) – The new head of Tag Heuer, luxury group LVMH’s (LVMH.PA: Quote, Profile, Research, Stock Buzz) biggest watch brand, has replaced half a dozen top managers as part of a drive to revive sales, he told Reuters.

Jean-Claude Biver, who took the helm in December, said the brand needed to focus on best-sellers such as the all-steel mechanic Carrera and Aquaracer models costing around $1,500-$4,000, over more expensive watches that did not sell so well.

Feb 23, 2015

Prada shares rise as market takes heart from shop opening slowdown

PARIS, Feb 23 (Reuters) – Shares in Prada rose 4
percent on Monday after the Italian luxury goods maker posted
in-line fourth-quarter sales, relieving many investors who had
braced themselves for weaker numbers.

Investors also took heart from the fact that Prada opened
fewer stores in 2014 than it said it would — 54 against 80
initially, implying less pressure on margins than expected.

Feb 17, 2015

Kering sees first fruits of Gucci’s revamp later this year

PARIS, Feb 17 (Reuters) – The first tangible signs of
Gucci’s turnaround under its new creative and management duo
will appear only in the second half of this year, parent Kering
said on Tuesday after its flagship luxury brand posted
lower full-year profits.

Kering Chief Executive Francois-Henri Pinault pledged a
continuation of Gucci’s strategy of moving up market which he
sees as a remedy against consumers growing tired of big brands.

Feb 13, 2015

L’Oreal sees low oil prices and euro boosting 2015 profits

PARIS, Feb 13 (Reuters) – French cosmetics giant L’Oreal
on Friday said it expected the weak euro and slump in
oil prices to boost consumption in many regions such as Western
Europe and help it increase profits substantially this year.

The maker of Lancome cream and Yves Saint Laurent perfume
said sales in Western Europe, where it made a third of revenue,
enjoyed their strongest growth last year since 2007, mainly
thanks to a rebound in southern Europe.

Feb 12, 2015

L’Oreal upbeat for 2015 after fourth quarter sales beat forecasts

PARIS, Feb 12 (Reuters) – L’Oreal on Thursday
posted forecast-beating fourth-quarter comparable sales growth,
driven in part by strong demand for its luxury fragrance and
cosmetics brands such as Yves Saint Laurent and Armani.

The world’s biggest cosmetics group, whose growth at the end
of the third quarter had slumped to its lowest point since 2009,
said trading had picked up towards the end of the year and it
aimed to outperform the market again in 2015.

Feb 12, 2015

Hermes lowers annual sales growth target to 8 pct

PARIS, Feb 12 (Reuters) – French luxury goods maker Hermes
lowered its annual sales growth target for the first
time in years to reflect its bigger size and overall industry
downturn combined with potential hits from currency swings.

Hermes, which last year remained one of the strongest
performers of the European luxury goods sector, lowered its
annual sales growth target to 8 percent from its traditional
level of 10 percent.

Feb 11, 2015

Prada needs to focus less on new shops and more on new handbags

PARIS/MILAN (Reuters) – If in fashion, being late on a trend can be lethal, playing catch-up in terms of business strategy can be just as damaging.

Prada is learning that lesson the hard way. The trend in luxury goods is to drum up same store sales by curbing expansion and wowing customers with new products, yet Prada continues to pay over the odds to open swanky new shops and stock them with handbags little changed from previous bestsellers.

Feb 5, 2015

Swatch says in strong position to weather franc rise

PARIS/ZURICH Feb 5 (Reuters) – Shares in Swatch Group
fell sharply on Thursday after the Swiss watchmaker’s
annual profits fell, missing forecasts, partly due to increased
marketing costs in the United States, Japan and China.

The world’s biggest watchmaker has also been hit like
Cartier-owner Richemont by the Swiss bank’s decision
last month to remove a cap on the franc, causing a surge in the
currency.

Feb 4, 2015

LVMH shares hit record high after Louis Vuitton growth

PARIS, Feb 4 (Reuters) – LVMH shares hit a record
high on Wednesday after sales rose more than expected, helped by
the revitalisation of the luxury group’s flagship Louis Vuitton
brand under star designer Nicolas Ghesquiere.

LVMH founder and Chief Executive Bernard Arnault said on
Tuesday after reporting fourth-quarter sales there had been an
“excellent response” to Ghesquiere’s work and Louis Vuitton’s
margins were exceptionally high.

Feb 3, 2015

Designer Ghesquiere’s magic touch at Louis Vuitton lifts sales

PARIS, Feb 3 (Reuters) – Louis Vuitton’s successful
renaissance under star designer Nicolas Ghesquiere boosted sales
growth at LVMH’s flagship luxury brand and helped the
group post stronger-than-expected fourth-quarter sales.

Louis Vuitton, under the creative stewardship of Ghesquiere
since Nov. 2013, enjoyed a strong year-end and is trading well,
helped by new products and buoyant trading in the United States,
LVMH Chief Executive Bernard Arnault said on Tuesday.

    • 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."
    • Follow Astrid