Luxury groups could shrink their way to riches

December 30, 2015

Labels like Prada and LVMH have spent a decade expanding like crazy to meet emerging market demand. Burberry has tripled its store base. It’s time to go the other way. While cutting back will be painful, it could spur higher luxury valuations. Hermes is one that has it right.

Hermes shares look too glossy

March 25, 2015

The French group weathered luxury market headwinds well in 2014 and will pay a 530 mln euro special dividend. Rivals Kering and LVMH were hit harder but are recovering. That makes the silk tie-maker’s luxury valuation of 32 times forward earnings more difficult to justify.

LVMH, Hermes in five-year handbag peace

September 3, 2014

The French luxury leader will distribute to its shareholders the stake it stealthily built up in the Birkin bags maker. The founding family remains in control of Hermes. But Groupe Arnault will retain 8.5 pct of its capital, suggesting it is keeping its long-term options open.

Hermes can’t deal with LVMH by stiffing minorities

December 7, 2010

The Hermes family thinks it has been wronged. But in its fight against an unwanted shareholder, it seems intent on sacrificing the French luxury group's remaining minority investors.