European Luxury Goods Correspondent
Astrid's Feed
Apr 15, 2014

Labelux aims for Jimmy Choo share offer this autumn: sources

PARIS (Reuters) – Privately owned luxury group Labelux has hired Bank of America Merrill Lynch (BAC.N: Quote, Profile, Research, Stock Buzz) to advise it on a possible London market flotation of Jimmy Choo this autumn that could value the upmarket shoemaker at over 900 million pounds ($1.5 billion), industry and financial sources said.

Market conditions permitting, the listing could take place towards the end of the autumn, in November, with Labelux seen selling a 25 percent stake, the sources said. Merrill Lynch declined to comment.

Apr 14, 2014

L’Oreal revenue falls, hit by North America weakness

PARIS, April 14 (Reuters) – L’Oreal posted a drop
in revenue for the first three months of the year, hit by slower
demand in North America, but pledged it would return to growth
in the second quarter.

The French cosmetics group said on Monday the market for its
consumer products, including Garnier shampoo and Maybelline
make-up, saw no growth in the United States, due in part to poor
weather, but it had seen signs of recovery in southern Europe.

Apr 10, 2014

LVMH shares rise on improving growth at Louis Vuitton

PARIS (Reuters) – Louis Vuitton sales to Chinese and European customers improved in the first quarter, parent LVMH (LVMH.PA: Quote, Profile, Research, Stock Buzz), the world’s biggest luxury group, said on Thursday after posting forecast-beating fashion and leather sales.

Fashion brand Louis Vuitton, the group’s biggest contributor to profit and sales, has been enjoying a pick-up in demand in recent months, helping alleviate concerns it lost its sparkle after a decade of strong growth.

Apr 2, 2014

Ex-LVMH executive Trapani joins private equity firm Clessidra

PARIS, April 2 (Reuters) – Francesco Trapani, former senior
executive at LVMH and head of Italian jeweller
Bulgari, has been appointed executive vice-chairman of Clessidra
to strengthen the Italian private equity firm’s pool of seasoned
industrial managers.

Trapani, who joined LVMH when he sold his family business
Bulgari to the world’s biggest luxury group in 2011, resigned as
group head of watches and jewellery on March 1.

Mar 19, 2014

Luxury giants flex their muscle to lock down prime window space

PARIS, March 19 (Reuters) – French luxury group LVMH
is trying to push out smaller rivals from plush Place
Vendome in Paris after buying one of its highest-profile
buildings, illustrating the intensifying battle for Europe’s
prime retail locations.

Cash-rich groups such as LVMH, Richemont and Hermes
have been stepping up property investment in key
fashion capitals, buying entire buildings to lock in premium
sites for which prices and rents are rising fast.

Mar 18, 2014

Bottega Veneta CEO says bigger, not more shops key to growth

PARIS (Reuters) – Bottega Veneta, Kering’s No.2 luxury brand in terms of sales, is slowing down the pace of shop openings to preserve exclusivity, and plans to focus on enlarging and improving the performance of its existing stores, its head said.

The Italian brand famous for its “intrecciato”, a weaving of leather stripes that makes its bags supple, robust and recognizable, is one of Kering’s main growth engines, helping make up for slower growth at sister brand Gucci.

Mar 5, 2014

French handbag maker Longchamp sees more potential in China

PARIS (Reuters) – Longchamp, one of France’s leading handbag makers, plans to increase its presence in China, its chief executive said, in sharp contrast to retrenchment by rivals and despite the economic slowdown and changing consumer culture there.

Many leading luxury brands such as Kering’s (PRTP.PA: Quote, Profile, Research) Gucci and LVMH’s (LVMH.PA: Quote, Profile, Research) Louis Vuitton have put the brakes on further store openings in China as part of campaigns to preserve their exclusive image.

Mar 5, 2014

Accessible luxury snaps at heels of mega brands

PARIS/LONDON (Reuters) – While Gucci and Louis Vuitton blame slumping sales on their upmarket drive they argue will help them regain some of their lost glory, there is growing evidence they are losing out to newer, more affordable luxury brands.

After years of rampant expansion, Kering (PRTP.PA: Quote, Profile, Research, Stock Buzz) and LVMH (LVMH.PA: Quote, Profile, Research, Stock Buzz), Gucci and Louis Vuitton’s respective parents, are finding the likes of Michael Kors (KORS.N: Quote, Profile, Research, Stock Buzz) are proving smarter at tapping the fast-growing middle classes, particularly in big markets such as China.

Feb 24, 2014

LVMH invests in Italian brand Marco de Vincenzo

PARIS/MILAN, Feb 24 (Reuters) – French luxury group LVMH
on Monday unveiled a joint venture with Italian
fashion brand Marco de Vincenzo as part of its strategy to gain
exposure to young and potentially fast-growing fashion labels.

LVMH will take a minority stake of about 45 percent in the
ready-to-wear brand of the Italian designer who has been working
for Fendi, one of LVMH’s fashion brands, for 13 years, a source
close to the deal said.

Feb 21, 2014

Growth stalls for Kering’s top brand Gucci

PARIS (Reuters) – Sales growth at Italian luxury brand Gucci almost ground to a halt in the fourth quarter and its parent company Kering (PRTP.PA: Quote, Profile, Research) reported a steep drop in full-year profits, hit by heavy restructuring costs.

Gucci’s performance is likely to reinforce concerns among investors about the long-term growth prospects of mega-brands such as Gucci and Louis Vuitton as consumers increasingly favour newer, niche labels.

    • 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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