Louis Vuitton handbagged for missing City profit targets
Friday 26 July 2013
The luxury goods sector is still booming but there are signs that shoppers have fallen out of love with established names such as Louis Vuitton.
The French luxury giants LVMH and Kering (previously PPR) both reported first-half numbers yesterday, and while Kering unveiled a forecast-beating 2.3 per cent jump in operating profit to €843m (£727m), LVMH missed analysts' expectations with a 2 per cent profit rise to €2.71bn.
Louis Vuitton, LVMH's flagship brand, has shown signs of stagnation and the group has been trying to halt this by reducing shop openings and raising prices.
LVMH, led by Bernard Arnault, has been buying other brands to lessen reliance on the Louis Vuitton label. This month it paid €2bn for the Italian cashmere brand Loro Piana and it is thought other brands are on its watch list.
Mr Arnault said: "Despite an uncertain European economic environment, LVMH will con-tinue to gain market share thanks to … product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs."
Kering is in the process of offloading parts of its business that do not fit with its core areas of luxury and sportswear. The Gucci to Puma group has spun off the music and electronics retailer Fnac and is in talks to sell its catalogue business La Redoute. Kering, which bought a 51 per cent stake in the British designer Christopher Kane in January, has appointed a new boss, Alexandre de Brettes, for the small but growing brand which is searching for its first shop in London.
- 1 Man on naked bike ride gets ejected after becoming aroused
- 2 Charles Kennedy dead: Former Lib Dem leader dies at home aged 55 - latest news
- 3 Ayyan Ali: Pakistan's top model now appears in the courtroom rather than on the catwalk
- 4 Fifa corruption: Europe plots to stage an 'alternative World Cup' in place of Russia 2018
- 5 Jaden Smith wears gender fluid dress to high school prom with Hunger Games actress
Photographer who performed naked shoot in China's Forbidden City sparks outrage
Ed Miliband returns to the backbenches but it's all a bit awkward as he tries to avoid eye-contact with fellow Labour MPs
Man on naked bike ride gets ejected after becoming aroused
Charles Kennedy dead: Former Lib Dem leader dies at home aged 55 - latest news
Isis tortures 14-year-old Syrian boy and films it in graphic video for 'propaganda purposes'
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Why this year's general election was the most unfair in Britain's history
iJobs Money & Business
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...
£25 - £30K: Guru Careers: We are seeking a highly-motivated and ambitious Comm...