First and Formost

Standstill is a step backwards

am pleased to present to you the first issue of our new newsletter "The Blue Book" dedicated to luxury, fashion and eyewear from a financial perspective.

Indeed in 2024, Blueballon Capital is expanding into the eyewear, fashion and luxury sectors in addition to the healthcare market for two reasons. The first is that to stand still is to go backwards, so we need to continue to expand the franchise. In the coming months some new partners with more expertise will join us and we will expand our presence in more cities on both sides of the Atlantic.

The second reason is that I've always had a passion for fashion and luxury. As a child I read my mother's fashion magazines, and by the age of 15 I was reading yacht and watch magazines. I love to go shopping with my wife and 3 daughters. From the age of 10 I was passionate about eyewear, then shoes. Today, I'm lucky enough to be able to express this passion in the service of those who make it.

To dive into these worlds is to meet designers, true craftsmen, enthusiasts, maniacs, frustrated people, dreamers, creative people, visionaries, offbeat people, elegant people, lovers. It's access to the sublime, to serenity, to refinement, to the sumptuous, to the sublime.

We started? in 2023, the worst year for M&A in the last 20 years. However, the mid- and small-cap market offers significant opportunities. We have estimated that 90% of all M&A transactions in 2023 were be in the mid- and small-cap segment. In terms of multiples, overall valuation levels have returned to 2014 levels of around 9.1x EBITDA. See chart on page xx. Please note that these are averages; your company or target may be worth more or less. The aging of management teams presents a historic opportunity to acquire certain companies. In France, for example, more than 23% of SME and ETI managers will be 60 or older in 2021, up from less than 15% in 2005. In Quebec, 30% of SME owners are over 55. It is time to look for acquisition.

This newsletter is for you, so tell me in the comments or by email what you would like to see in it. More financial news, more news about the big four (Hermes, LVMH, Chanel and Kering), more news about small and medium-sized companies, more discussion about trends, more stories about brands, more comments on company results, more financial and/or global economic news...

Financial marke

Interest rate cuts

The Swiss National Bank (SNB) made history as the first developed market central bank to cut interest rates in this cycle. The Federal Reserve confirmed that it still plans to cut rates three times this year, even in the face of stronger growth and stickier inflation. The Bank of England laid the groundwork for a possible cut as early as June, with the UK "on track" to win its battle against inflation. Even the Bank of Japan set a milestone of its own, raising rates for the first time in 17 years to officially end its negative interest rate experiment.

All in all, the race to lower rates is officially on - and the SNB has just started it.

Source: JP Morgan

As a direct consequence the? High Yield Index effective yield is around 140 bps lower than last year

Source: FRED ST.LOUIS FED

The M&A market

The M&A market remains at very low levels in 2024, but the stabilization of inflation, announcements of interest rate cuts and low valuation should lead to an upturn in M&A deals in H2 2024.

Source: Argos index? mid-market Epsilon Reseach.

Historical underperformance of small caps

European and US small caps are suffering their worst performance relative to large caps in over 20 years. The sharp rise in interest rates since the beginning of 2022 has led to a sharp compression of valuation multiples, especially for growth stocks, which are the most represented in the small and mid-cap segme

t.

Since the beginning of 2020, the Russell 2000 Index has risen 24%, while the S&P 500 has gained more than 60% over the same period.

Historically, small caps have tended to offer higher returns to investors who can tolerate greater volatility. In an environment of fear and tightening credit conditions, investors have preferred to shy away from this illiquid asset class, mistakenly perceiving it to have a higher risk of default. In addition, investors perceive that small caps have less pricing power and have been particularly hard hit by high inflation and rising borrowing costs.

EUROPE: For 2024, market consensus forecasts earnings growth of 8% for small caps versus 3% for large caps. In the Eurozone, 30% of small caps are cash positive.

US: About 40% of balance sheet debt in the Russell 2000 Index is short-term or floating-rate, compared with about 9% for S&P companies.

Earnings of Russell 2000 companies, about 30% of which are unprofitable, fell 17.6% year-over-year in the fourth quarter, according to LSEG data. S&P earnings, on the other hand, were up about 4%. Barring a recession, small-cap earnings should improve as interest rates fall.

The Financial book

December 2023

• Theo, J.F. Rey and John Dalia have formed a consortium to take over the business of Cemo Decovision, their joint supplier based in Morbier, which has been in liquidation since November 2023.
• Out Of, an Italian start-up specializing in sports eyewear, has raised €7.6 million from around 580 investors in a 30-day crowdfunding campaign on Mamacrowd. This is the largest crowdfunding campaign ever carried out in Italy, close to the legal limit of €8 million.
• Bonton, a children's brand, was acquired by La Compagnie Financière Roger Zannier on December 15 at the Commercial Court of Paris. The brand had been in receivership since October 5, 2023.? Luxembourg-based La Compagnie Financière Roger Zannier also owns the Tartine et Chocolat brand. At the time of its receivership, Bonton had seven boutiques in France and one in London, with sales of €14.6 million in 2022.
• Kujten, the Parisian cashmere label created by Carole Benaroya and Stéphanie Eriksson, opened 12% of its capital to private minority investors at the end of 2023. The investors are the FG Bros investment fund, Olivier Duha and a luxury goods family. It's a mixed equity/debt operation. The goal is to accelerate internationalization and digital development. Online represent 13% of sales and the goal is to reach 20% within three years. In 2023, Kujten will reach a turnover of €50 million, of which 20% will be exported. The goal is to reach 50% export sales.

January 2024

• Michael Ksela, CEO of Retail Optical Stores Netherlands, the company that operates the Eye Wish chain of stores, confirmed that Retail Optical Stores Belgium, the company behind the 35 Grand Optical stores in the country, has filed for bankruptcy.
• Campsider, a platform dedicated to second-hand outdoor products, has closed a hybrid equity and crowdfunding round of €2.5 million, including €2.1 million in seed funding from Founders Future, Inovexus, Machame and Fair Equity, as well as Business Angels, and €400,000 raised with the help of its community and the general public via the French crowdfunding platform Sowefund. This follows a pre-seed round in April 2022. The goal is to finance growth over the next two years, expand the marketplace to other European countries such as Germany, Switzerland, Benelux and the UK, and expand the offering to include water sports, equestrian and golf equipment. Founded in 2021 by Arthur Rocle and Thomas Gounot, the company has an annual turnover of more than €5 million. It boasts an offer of 200,000 products, 20,000 of which have been sold since its creation, and claims to have gathered a community of over 150,000 members. It aims to reach €10 million in sales by 2025.
• Desseilles, a company specializing in Calais lace since 1947, was acquired by Darquer & Mér (70%), part of the Cochez industrial group, and Solstiss (30%), a company specializing in Caudresian lace. The group has been in liquidation since December 2023. The Calais Dentelle structure of the group achieved a turnover of €8 million in 2022. For 2024, there are few signs of recovery in the lace market.
• Opal Demetz acquires Roussilhe with the aim of developing its French production. The new group expects sales of around €60 million by 2024.
• Weinberg Capital Partners' WCP Impact Dev #1 fund acquires a minority stake in Opal Demetz, a specialist in the design and distribution of eyewear frames, mainly for the children's eyewear market. This new shareholding structure is accompanied by a change in management: Fran?ois Fort, the company's founder, hands over his role as CEO to his son, Guillaume Fort, while remaining Chairman and an active member of the Supervisory Board.
• Visionary Holdings, the Japanese optical group that owns the Mégane Super optical chain with more than 300 stores in Japan, is taken over by the Japanese investment fund Nippon Investment Companies following a public offer on the Tokyo Stock Exchange.
• Schiaparelli, one of the most legendary brands in fashion since it was founded in Paris in 1927 by Roman designer Elsa Schiaparell, is rumored to be being acquired by LVMH after couturier Daniel Roseberry made it one of the most fashionable labels. The brand is currently owned by Diego Della Valle.
• Camille Fournet, the luxury leather goods manufacturer, has changed its minority shareholder structure. Crédit Mutuel Equity and Turenne Capital Groupe are replacing a pool of minority shareholders. The company achieved a turnover of €40 million in 2023. Founded in 1945, the company was acquired in 1994 by its current CEO, Jean-Luc Déchery. The company produces leather goods as a subcontractor for some of the world's leading luxury brands, and since 2006 has also produced watch straps, belts and bags under its own brand. The private label accounts for 30% of group sales. The strategic objective is to increase diversification, production capacity and international presence. This operation also has an inheritance aspect. Jean-Luc Déchery, supported by Jean-Yves Basin, Managing Director and new shareholder, points out that the management team is being renewed and that the group is aiming for a turnover of €60 million by 2027.
• Arteos Digital sells its folding carton production unit to Spanish luxury packaging specialist Salinas. The acquired unit employs approximately 50 people, has a production area of 3,000 square meters and is expected to generate sales of €6 million in 2023. Salinas, which was founded in 1995 by Antonio Martinez and is based near Alicante, plans to achieve sales of nearly €50 million in 2024.
• The shoe manufacturer Wolverine Worldwide (Merrell, Saucony, Wolverine, Hush Puppies, Chaco, Cat Footwear, Bates...) announces the sale of the Sperry brand, a specialist in boat shoes, to the Aldo Group and Authentic Brands. $130 million were used to reduce the company's debt. By 2022, sales will increase by 11.2% to $2.7 billion. By 2023, it will be $2.24 billion.
• Cardin: The couturier's great-nephew, Rodrigo Basilicati-Cardin, who became the group's CEO in 2018 and then its chairman in November 2020, relied on a holographic will of Pierre Cardin found at the deceased's home on July 13, 2022, dated November 10, 2016. This will was declared invalid by the courts. The group's assets are estimated at between €750 and €800 million, depending on the takeover proposals, according to Jean-Louis Rivière, lawyer for the designer's great-nieces,? in August 2023. Under the impetus of Rodrigo Basilicati-Cardin, Pierre Cardin returned to the official women's ready-to-wear calendar in Paris in March 2023 after a quarter-century absence, reopening the brand's historic boutique opposite the élysée Palace.
• Carlyle hired Rothschild Bank to evaluate possible strategic options for Twinset, a clothing brand founded in 1990 in Carpi, Italy, by entrepreneur Tiziano Sgarbi and his wife, designer Simona Barbieri. Carlyle acquired a 72% stake in 2012 and since 2017 owned 100% of Twinset. Sales had reached €235 million in 2018, against €140 million in 2020. In 2020, JP Morgan had been mandated to find an investor to sell the brand, but the mandate was interrupted due to the pandemic.
• Vestiaire Collective, the second-hand fashion platform founded in Paris in 2009, is calling for participatory financing and preparing its IPO. The goal is to raise at least €1 million from individual investors. The company is valued at €1.1 billion. In mid-2022, the company was valued at €1.4 billion. Eurazeo is the main shareholder, holding around 25% of the capital, with Kering holding 5%. Revenues have increased by 25% in 2023. The company aims to be profitable by the end of 2024 and is considering an IPO.

February 2024

• EssilorLuxottica, through its subsidiary Luxottica Japan, acquired the business of Washin Optical, a mid-sized Japanese optical retailer founded in 1951.
• Amer Sports, 53% owned by the Chinese sports group Anta, owner of the Arc'Teryx, Salomon and Wilson brands, was listed on the New York Stock Exchange. The transaction was led by investment banks Goldman Sachs, BofA, J.P. Morgan and Morgan Stanley. In 2022, the group achieved sales of over $3.5 billion, and in the first nine months of 2023, it grew by over 30% compared to the same period in 2022, to $3.05 billion, and recorded a net loss of approximately $115.6 million. The group is valued at $8.1 billion.
• Trussardi SpA, which is owned by QuattroR, an Italian investment fund that acquired the company in 2019, is reportedly in the process of being sold to MiroglioGroup, a manufacturer and distributor of ready-to-wear clothing. Proceeds from the sale would then be used to repay creditors. The agreement would not cover all stores, meaning that some would have to close. The brand had been up for sale for some time but had not attracted much interest.
• The Puig Group, 89% owned by the Puig family office and owner of brands such as Carolina Herrera, Jean Paul Gaultier, Paco Rabanne, Nina Ricci, Dries Van Noten and Charlotte Tilbury, is preparing its IPO with an expected valuation of €15 billion. The operation is being led by Goldman Sachs and J.P. Morgan. Sales are expected to reach €8 billion in 2022. One of the reasons for the IPO is the difficulty of passing on the group to descendants.
• Rag & Bone, a New York-based fashion brand founded in 2002, is acquired by Guess and WHP Global. Guess will acquire all operating assets and share intellectual property with WHP Global. The brand is expected to generate approximately $250 million in sales and $18 million in adjusted EBITDA by 2023. Guess will contribute $56.5 million to the transaction, with the potential for an earn-out based on 2024 results.
• Francesco Milleri, CEO of the EssilorLuxottica group, said he was open to the Italian state taking a stake if it wanted to behave like the French state, which supports EssilorLuxottica. Sales rose 7.1% year-on-year to €6.25 billion, but margins suffered from inflation and investments.
• PAI Partners is seeking to sell its 78.5% stake in Marcolin, an Italian eyewear manufacturer that holds, among other things, a perpetual license agreement with the American brand TOM FORD. The Group is also renewing licensing agreements with Zegna, GCDS, Max&Co and Pucci, and has signed a new licensing agreement with luxury shoemaker Christian Louboutin. PAI Partners has retained Goldman Sachs as advisor. In the first nine months of the year, revenues increased by 3% to €422 million and adjusted EBITDA by 28% to €65 million. According to the newspapers, potential buyers could be Kering (we are not convinced), Safilo, Marchon and the FountainVest fund based in Hong Kong.
• Moncler's main shareholders have said that the family behind the Stone Island sportswear brand will "cooperatively" withdraw from the brand's top investment vehicle to become direct shareholders in the luxury group. Temasek and the Rivetti family will each hold a direct stake of around 4% in Moncler through their financial vehicles. Moncler's CEO and major shareholder will end up with about 16% of the luxury group once the Rivetti family withdraws from the holding company.
• LuisaViaRoma acquired Holding It, a company specializing in retail and e-commerce services, owned by LuisaViaRoma CEO, Tommaso Maria Andorlini. The new group's revenues are expected to reach nearly €400 million in 2023 and €450 million in 2024. Holding It owns all the shares in Playground, owner of the Soft brand of luxury sportswear boutiques, and in Ffw, a digital service provider for the development of e-commerce services in the luxury sector.
• Planity raises €45 million to strengthen its position in Europe from InfraVia Capital Partners and its historical shareholders Crédit Mutuel Innovation, Revaia and Bpifrance Digital Venture. Planity, the French specialist in online reservations for beauty and hair salons, employs 400 people and has more than 40,000 establishments using its solution, including 2,000 in Germany and 1,000 in Belgium. The company has achieved a turnover of €40 million in 2023 and is breaking even in France. It is number 1 in France and is aiming for the same position in Belgium and Germany.. Planity is looking for acquisition.
• English premium streetwear brand A-Cold-Wall, founded in 2015 by designer Samuel Ross, a finalist in the 2018 LVMH Award, has been acquired by Tomorrow Ltd. Without Samuel Ross, the brand is now managed by Giovanni de Marchi, the group's marketing director. It has design studios in London and Milan, as well as a store. In 2023, the brand achieved a turnover of ￡16 million.
• The Beaumanoir Group confirms that it has entered into exclusive negotiations with the American company Authentic Brands Group for the acquisition of the activities of the Boardriders Group and the operation of its iconic brands (Quiksilver, Billabong, Roxy, DC Shoes, Element and RVCA) in Western Europe. Authentic Brands Group, which specializes in the acquisition, management and enhancement of well-known global brands, acquired Boardriders last September. The Beaumanoir Group, headquartered in Saint-Malo, has sales of €2.1 billion and employs more than 13,000 people worldwide. Its 2,000 points of sale include 420 Cache Cache stores, 360 Bréal stores, 400 Bonobo stores, 350 Morgan stores, 500 Caroll stores and 330 La Halle stores. Authentic Brands Group, which specializes in the acquisition, management and development of world-renowned brands, expects sales to exceed €1 billion in 2022 (up 58% from 2021). With the acquisition of Boardriders last September, it is now valued at $29 billion.
• Superdry reported that CEO Julian Dunkerton was "exploring the possibility of making an offer" to buy the company and was "in discussions with potential financial partners with a view to exploring options (...) which may include a potential cash offer for the entire share capital". Results in recent months have been disappointing. In January, the company also announced the departure of its CFO, Shaun Wills, who will step down at the end of March and will be replaced on an interim basis by Giles David. Norwegian investment fund First Seagull acquired a 5.3% stake in the company. The Sycamore Partners fund, Authentic Brands Group and British luxury clothing chain Ted Baker are reported to be interested in buying Superdry.
• Launch of a friendly takeover bid by the investment fund L Catterton to delist the Italian shoe manufacturer Tod's. In agreement with the Della Valle family, Tod's main shareholder, L Catterton proposed to acquire 36% of the share capital at a price of €43 per share, for a maximum amount of €512.2 million. If the offer is successful, the Della Valle family will own 54% of the capital, L Catterton will control 36% and LVMH will retain its current 10% stake. L Catterton is a fund associated with luxury goods group LVMH and Bernard Arnault. A first attempt to delist Tod's failed in October 2022, when a takeover bid by the Della Valle family failed to reach the required 90% threshold.
• Lagardère Group for the purchase of Paris Match magazine, Lagardère announced. The latter "has received an offer from the LVMH group to purchase Paris Match" and "its Board of Directors has decided to enter into exclusive negotiations with the latter", according to a press release on the occasion of its annual results. .
• Famille C Participations, the investment fund of the Courtin family, owners of the Clarins cosmetics group, is diversifying into luxury hotels by acquiring a stake, described as "strategic", in Evok Collection, the hotel business of French businessman Pierre Bastid, for €130 million. "Together with the teams at Famille C Participations, I'm proud to support Evok's development and shake up the codes of the hotel business to create exceptional places to live," said Prisca Courtin, managing director of Famille C Participations, in a statement.. Founded in 2014, the Evok Collection has six addresses in Paris and Venice. With the arrival of Famille C Participations in the capital, the group expects to open around fifteen addresses worldwide over the next five years. The next openings will be in Madrid and Rome. "After a decade of successful development of a new luxury hotel model based on our own ownership of exceptional real estate, our ambition was to invite a private, non-financial partner capable of sharing our entrepreneurial approach and boldness over the long term. Strengthened by an injection of €130 million, Evok Collection will be able to accelerate the deployment of its hotel brands by selecting exceptional assets, notably in the Alps, St. Tropez, London, Milan, Ibiza, Come, Capri, Amalfi or Marrakech..." says Romain Yzerman, Managing Director of Zaka, Pierre Bastid's real estate company and owner of Evok. Famille C Participations, created in 2018, owns the beauty brands Ilia and Pai and has stakes in brands such as Joone. The fund also invests in technological and innovative solutions, such as Pili, a startup specialized in decarbonizing the color industry.
• French publisher of industrial supply chain planning solutions, Planisense, has announced the raising of €1.8 million to finance its development and support growth in Europe and North America. Launched eighteen months ago, the company reports a 300% acceleration in activity in 2023 and plans to triple its annual recurring revenue by 2024.
• Singapore-based fast-fashion company Shein is considering moving its IPO from New York to London because of obstacles to listing in the US, according to people familiar with the matter. Donald Tang, Shein's executive chairman, has reportedly held talks with Jeremy Hunt, Britain's chancellor of the exchequer. Other locations such as Hong Kong or Singapore could also be considered. US Senator Marco Rubio had asked the SEC to block the listing, claiming that the company needed to disclose more information about its activities in China. Last year, a U.S. congressman called for an investigation into Shein's sourcing of cotton from Xinjiang. Last year, Shein filed for an initial public offering (IPO) in the United States, seeking a valuation of $80-90 billion.

March 2024

• Golden Goose, the Italian company, which specializes in luxury sneakers, has announced that its sales will reach 587 million euros in 2023, an increase of 18% at constant exchange rates. The company, founded in 2000, said in its preliminary results that its growth was driven by the opening of 21 new stores, bringing the total to 191 by the end of 2023. It also operates with retailers and online, and has an international presence. Adjusted underlying earnings rose 19% to 200 million euros in 2023, while debt stood at 479 million euros. The group is majority-owned by private equity firm Permira. The group has mandated Bank of America, JPMorgan, Mediobanca and UBS for its IPO in Q2 2024. The Chairman of the Board is Maureen Chiquet (CEO of Chanel for 12 years) and the CEO is Silvio Campara, who joined the brand in 2013.
• Missoni announces the acquisition of Tricotex, a textile company specializing in raschel knitwear. Tricotex is based in Gallarate, north of Milan, and supplies several luxury houses. The acquisition will allow Tricotex to "maintain direct control over its value chain, guaranteeing transparency and traceability of materials and manufacturing processes," the company said. The amount of the transaction was not disclosed. The company, whose artistic director is Filippo Grazioli, is 59% owned by the founding family and 41% by the Italian investment fund FSI. The Missoni family has mandated Rothschild to explore a possible sale of its activities.
• Capri Holdings acquires the Tuscan shoe manufacturer Sicla. It strengthens its production chain by acquiring one of its suppliers. Sicla was founded in 1979 by Enzo Donnini, who runs the company with his family. The family will continue to run the company.
• Lithuanian second-hand portal Vinted acquires Denmark's leading second-hand marketplace Trendsales. According to a study by business data platform Statista, Trendsales will be one of the most downloaded applications in the Danish app store in 2022. This acquisition follows the acquisition of the Dutch company United Wardrobe in 2021 and the German luxury goods resale site Rebelle in 2022.
• Through Staff International, OTB acquires a majority stake in Calzaturificio Stephen, a long-standing supplier to the Group and a long-established manufacturer of high-end shoes for men and women in the Venetian region. This acquisition follows last year's purchase of Tuscan leather goods manufacturer Frassineti. Founded in 1967 by Francesco Bertollo,Calzaturificio Stephen has been a supplier to the OTB group for over 20 years. The company is currently managed by the second-generation of the founding family, the siblings Stefano, Antonella and Valeria Bertollo.

The appointment book

• Laurence Levy, ex-CEO of Repetto, joins cashmere house Eric Bompard as CEO. Sales are approaching €100 million.
• William Simon becomes Chairman of the Board of American group HanesBrands (Champion and Playtex brands). This appointment follows the departure of Ronald Nelson.
• Bastien Daguzan left Jacquemus on December 22, 2023. He had been CEO since May 2022.
• Brian Grevy becomes CEO of Dutch lingerie group Hunkem?ller, he was a director at Adidas.
• Beth Clymer joins the Canada Goose Group as President of Finance, Strategy and Administration.
• Frédéric Arnault becomes head of LVMH's Watches division.
• Evangelie Smyrniotaki, artistic director at Sergio Rossi and famous Greek instagrammer, leaves the group at the end of her two-year contract.
• Lionel Guérin and Pierre-Fran?ois Le Lou?t elected president of L'Union fran?aise de la mode et de l'habillement (UFIMH) to replace Sylvie Chailloux, who did not stand for re-election. Since 2020, Lionel Guérin has been Executive Chairman of the Fédération fran?aise des industries du vêtement masculin (FFIVM). He is also a director of Défi (Comité de promotion et de développement de l'habillement) and Chairman of the Economic Council of the Institut fran?ais de la mode (IFM). Pierre-Fran?ois Le Lou?t is CEO of the NellyRodibusiness and creative strategy agency.
• Rémy Baume, President of Zadig & Voltaire, leaves the group to be replaced by Arnaud Gillier (founding family).
• Cecilia B?nstr?m, Artistic Director of Zadig & Voltaire, isn replaced by Thierry Gillier (founding family).
• Sung Choi founder of sneaker brand Clae, returns to the group as artistic director. He had left in 2017. "My goal is to make Clae a leader in the lifestyle footwear category," said Sung Choi.
• Michael Burke becomes CEO of LVMH Fashion Group, succeeding Sidney Toledano, who has held the position since 2018.
• Pierre La Tour joins Ferragamo as CFO from March 18. He succeeds Alessandro Corsi, who left the group in September 2023 after 20 years' service. The company has been headed by Mardo Gobbetti since January 2022 and is in the midst of a transition.
• Robert Geller joins New York-based Rag & Bone as head of menswear design.
• Jonathan Cheung joins Lululemon as Worldwide Artistic Director.
• Anca Marola is appointed global Chief Digital Officer of Sephora. She succeeds Marc Abergel.
• Jérémie Le Febvre, who joined Fursac on May 15 as Managing Director, has left the group. He has been replaced on an interim basis by Isabelle Guicho, CEO of SMCP, with the support of Ilan Chetrite, founder of Sandro Homme.
• Alexandra Helbling, CEO since 2018 of Calida, the Swiss lingerie group, has announced that she is leaving the group. She will continue in her role until her successor is appointed.
• Stephane Delva joins Agatha Paris, as General Manager. Agatha Paris was taken over in February 2021 by Renaissance Luxury (Les Georgettes ... ) and Thom Group (Histoire d'or and Marc Orian jewelry stores).
• Daniel Ervér replaces Helena Helmersson as CEO of H&M.
• Isolde Andouard joins the Iro fashion brand, founded in Paris in 2005 by brothers Arik and Laurent Bitton. She takes over from Richard Fettaya. Her mission will be to accelerate international expansion. Iro Paris has been 100% owned by the Chinese company Ellassay since 2019. Annual sales exceed €100 million.
• Dave Powers, CEO of US footwear group Deckers, will leave the group on August 1, 2024.
• Eric Venel replaces Emmanuel Benabou as Managing Director of IDKids (Oka?di, Jacadi, Rigolo comme la vie daycare network). The group achieved 2023 sales of €924 million.
• Philippr Gautier joins Lacoste as CFO. In 2022, the Lacoste group achieved sales of €2.5 billion.
• Michelle Gass becomes CEO of Levi's. She replaces Chip Bergh, who held the position for twelve and a half years. Her objective is "to bring a strategic vision focused on accelerating growth abroad, positioning the Levi's brand as the benchmark for lifestyle denim and transitioning LS&Co.'s business model to direct sales".
• Matt Puckett, CFO of VF Corp (Vans, The North Face...) leaves the group after results below market expectations.? Caroline Brown, who has worked for investment firm Closed Loop Partners and as Managing Director of Donna Karan International, will join the VF Corp Board of Directors. An independent director will join the group shortly. These decisions follow Engaged Capital's acquisition of a 1.3% stake in the company.
• Francesca Bellettini remains Deputy Managing Director of Kering and CEO of Saint Laurent.
• José Neves, CEO and founder of Farfetch, has announced his departure from the group following the company's acquisition by South Korea's Coupang.
• Jean-Fran?ois Palus confirmed as CEO of Gucci following the departure of Marco Bizzarri, CEO since 2015. He will ensure the brand's strategy of elevation in the very high-end segment, initiated with the rationalization of sales channels, then with the arrival of Sabato De Sarno as creative director.
• Juan Antonio Franzi becomes General Manager of General Optica, the Spanish-based optical chain owned by Italian eyewear manufacturer De Rigo. He replaces Jordi Fontcuberta, who is retiring after 24 years with the Group.
• Wataru Aoyama is appointed Managing Director of Charmant Europe, replacing Satoshi Otsuki, who has decided to retire at the end of 2023.
• Jack Dooley has been appointed General Manager of the Cutler and Gross Group. Having arrived in 2016, he has played a key role in the brand's international development.
• Steffen Baetjer has been promoted to CFO of the Fielmann Group, replacing Georg Alexander Zeiss who held the position for 20 years.
• Dr Mirko Caspar has asked to step down from his position as co-director of Mister Spex after 12 years in the post. Founder and co-CEO Dirk Graber and CFO Stephan Schulz-Gohritzwill jointly take over this position.
• Stefan Müller is appointed Chief Financial Officer of Carl Zeiss AG. He replaces Dr. Christian Müller, who has left the Group after 20 years' service.
• Pierre-Emmanuel Angeloglou, Executive Vice-President in charge of strategic missions at Louis Vuitton, is to become Managing Director of the LVMH Fashion Group. He will oversee Fendi, Kenzo, Marc Jacobs, Stella McCartney, Pucci, Patou and Off-White.
• Montblanc France appoints Stéphanie Martinez as Managing Director from her position as Latin American Market Director. She replaces Jean-Sébastien Gerondeau, now President of the South Asia region.
• At the Annual General Meeting on April 25, Kering will propose the appointment of three new independent directors to its Board of Directors: Rachel Duan, Giovanna Melandri(former Italian Minister of Culture) and Dominique D'Hinnin (Chairman of Eutelsat Communications). They replace the departures of Jean-Fran?ois Palus, appointed CEO of Gucci, and Tidjane Thiam, who took over as head of the Parti démocratique de C?te d'Ivoire (PDCI) at the end of December. Emma Watson's term of office is also due to expire. If the new appointments are approved, the Board of Directors will comprise 55% women, six nationalities (American, British, Chinese, French, Italian and Turkish), and will be 64% independent.
• Jean-Jacques Guevel, Balmain CEO for the past four years, leaves the company. This is the second departure of a senior executive. The company has not named a successor. Balmain is owned by Mayhoola, an investment vehicle controlled by the royal family of Qatar.
• Footwear brand Scholl announces the appointment of Andrea Collesei as Managing Director. He succeeds Tobias Klaiber, who takes over as head of Scholl's board of directors and a managing director position with European fund Aurelius, which has owned the brand since 2014.
• Valentino's creative director, Pierpaolo Piccioli, is leaving the group. He had joined the group in 1999. He has been replaced by Alessandro Michele. As a reminder, the designer was dismissed by Gucci in November 2022 after successfully guiding the relaunch of the group's flagship brand.
• Dries Van Noten announced that he was stepping down as creative director of the house he founded, after a final show in June in Paris. Six years ago, he sold majority control of his house to Puig, a Barcelona-based fashion and beauty group. He is 66 years old. "In due course, we will announce the name of the designer who will continue the DVN story”. The favorite is Haider Ackermann.
• Thomas Lecoq is appointed Managing Director of Frame for the EMEA region. Frame is a denim and fashion brand based in California.
• Florence Rousson was appointed Chairman of Première Vision.
• Simone Canclini was appointed President of Milano Unica
• Kosta N. Kartsotis is to step down as Managing Director and member of the Board of Directors of the Fossil Group. Jeffrey N. Boyer, who has served as the company's executive vice president and COO since April 2021, has been appointed interim CEO and board member. The company confirmed that the board had launched a search for a permanent CEO and would consider both internal and external candidates. Kevin Mansell has been appointed Chairman of the Board, with immediate effect.
• LVMH's Chief Operating Officer and Chairman of the Executive Committee, Toni Belloni, is stepping down after more than twenty-three years with the company. He will be replaced in this role by Stéphane Bianchi, who has headed the Watches & Jewelry division since 2020. He will step down following the Group's Annual General Meeting, to be held on April 18.
• Massimo Paloni has been appointed CEO of Brandart, an Italian company specializing in packaging and merchandising solutions for luxury brands, mainly in the fashion sector. He replaces Maurizio Sedgh, founder and CEO of Brandart, who retains the position of Chairman.
• Under Armour announced the return of founder Kevin Plank as President and CEO, effective April 1, succeeding Stephanie Linnartz, who is stepping down as CEO and board member.
• Marc Hayek, grandson of the founder of Swiss watchmaker Swatch Group, will join the Board of Directors following a vote at the Annual General Meeting in May. He has been a member of the Executive Board since 2005.
• Kontoor announced the appointment of Mary Campbell to its Board of Directors, effective immediately.

The Market

Luxury is a game for major players

Luxury is a market that is changing rapidly, according to Rachid Mohamed Rachid, head of the Qatari investment fund Mayhoola and chairman of Valentino and Balmain. He added that companies such as LVMH, Kering, and Richemont are investing heavily in advertising, celebrity partnerships, and stores. As demand slows, the luxury market has become more competitive than ever. These large corporations are investing significant amounts of money to create obstacles for new competitors. Additionally, costs have increased substantially. It is now a game for major players.

Mayhoola aims to maintain its position as a major player in the luxury goods market and is open to the possibility of partnering with a larger corporation to grow certain brands. It is worth noting that the company already has a partnership with Kering, which currently owns 30% of Valentino and may acquire the remaining 70% by 2028.

Regarding the luxury goods market in 2024, the growth is expected to be around 4% to 5%. According to Rachid, he see positive signs in America, but the progress is very slow. Although spending is slowly recovering, department stores are suffering. Visitor numbers have decreased significantly in Europe, China, and Korea. However, Japan is performing exceptionally well, and Indonesia, Singapore, and Thailand are surpassing expectations.

Quiet luxury gets its own space at Le Printemps

The trend of 'quiet luxury' continues to be prominent in 2024, and it has its own dedicated space at Printemps. On March 18, Printemps Haussmann opened a new space called 'Minimal Chic' on the fourth floor of the women's building. The 187-square-meter space brings together related brands in beige and camel tones, complemented by furniture such as tables, seats, and vases. Thirteen brands were selected, including Rohe, The Loom, Bourrienne, Alamelu, By Malene Birger, Skall Studio, Adolfo Dominguez, and St.Agni.

Printemps comes to New York this spring

This spring, the department store will open a 5,000-square-foot space in the iconic One Wall Street building in New York. According to Jean-Marc Bellaiche, CEO of Groupe Printemps, "We plan to pioneer a new experiential retail format in this demanding and fast-changing market." Parisian interior designer Laura Gonzalez, winner of several international awards, is the project's architect, and Laura Lendrum will manage the project. Between 1997 and 2013, she served as the president of Gucci and Saint Laurent for the U.S. market. From 2013 to 2017, she led Ralph Lauren's retail operations in North America.

There's a lot of moda I'd like to do away with

said Giorgio Armani, 89, who organized three shows on the same day to close Milan Fashion Week. Between the first and the second shows, he expressed his observation that the season is no longer what it should be.???? Armani questioned the relevance of small foreign designers showcasing absurd styles and asked, "Frankly, who cares???.

Made-to-measure for men is in vogue

Many global brands now offer personalized menswear. The latest addition to this trend is the Italian fashion house Etro, with its Etro Unique service. In the luxury industry, it is essential to provide a unique experience, with one-of-a-kind pieces and a high level of personalization.

The new service covers suits, jackets, vests, and pants that are fully customizable. Customers have the ability to customize their garment by modifying the cut, selecting details, and choosing from a variety of materials and personalization options. The service provides three main patterns: slim, straight, and comfort. Customers can select and combine elements for their garment from a wide range of options, including 80 materials, 45 linings, 34 tie linings, nine melton under-collars, and 28 button variations.

The convergence of luxury markets will continue to drive expansion.

The convergence of personal luxury brands, through the combination of in-store experiences, restaurants, hotels, and other experiential venues, will allow customers to experience the feelings of owning and wearing luxury items beyond the objects themselves.

After establishing a foothold in publishing, music, and cinema with the creation of the film production company Saint Laurent Productions in 2023, Saint Laurent has expanded its business to include bookselling and music retailing. At 9 rue de Grenelle in the VIIth arrondissement of Paris, the Saint Laurent Babylone house has opened.

This new version of Saint Laurent Rive Droite offers a diverse collection of books, art, and music, as well as a new cultural space. The selection includes rare books, volumes from SLRD Editions, rare albums, subversive publications, out-of-print music recordings, and original productions. The venue will also host events such as DJ sessions, readings, and author signings.

Diamonds are forever & synthetic

According to New York-based industry analyst Paul Zimnisky, the global market share by value of synthetic diamonds is expected to exceed 20% this year, up from 3.5% in 2018 and 18.5% in 2023.

In the United States, which is the world's leading consumer of natural diamonds, 37% of engagement rings are adorned with synthetic diamonds, compared to 17% in February 2023, as reported by industry analyst Edahn Golan.

Synthetic diamonds were first developed in the early 1950s. However, the development of a commercially viable process is less than a decade old. It takes less than eight weeks to produce a synthetic diamond that is virtually indistinguishable from a natural one.

China and India are the two largest producers of synthetic diamonds. According to the Gem and Jewellery Export Promotion Council of India (GJEPC), Indian laboratories exported 4.04 million carats between April and October 2023, which represents a 42% increase year-on-year. Conversely, exports of natural diamonds fell by over 25% to 11.3 million carats.

The demand for natural diamonds sharply declined after the Covid-19 crisis due to the economic slowdown in China and the USA. As a result, prices for diamonds marketed by De Beers have fallen by between 10% and 25%. Similarly, the price of synthetic diamonds has also decreased from $2,400 per carat in 2022 to $1,000 in 2023.

Swiss watch exports

Swiss watch exports, which account for almost 95% of Swiss watch sales, have broken records for the third year in a row. Their value has risen by 7.6% compared to 2022, reaching 26.7 billion swiss francs.

The United States remains the top export destination, with a 7% increase, followed by Asia with an 8% increase. In Europe, the UK saw a 7.6% increase, Germany 5.1%, France 8.1%, Italy 9.3%, and Spain 5.7%.

Wristwatch exports rose by 7.2% to 16.9 million pieces. Mechanical timepieces, which generated almost 80% of export sales growth, increased in value by 7%. Watches costing more than 3,000 Swiss francs rose by 9.4% in 2023.

While the Swiss watch industry may experience a slight slowdown in 2024, the growth in high-end watches is expected to continue. Although the current economic climate has only partially impacted the luxury goods market, it is still affecting consumer confidence at all levels. Several brands have already indicated caution in their forecasts. Additionally, the high value of the Swiss franc will negatively impact results, especially in the entry- and mid-range segments, explains the Swiss watchmaking federation.

Swiss watch exports experienced a slowdown in growth in January 2024, increasing by only 3.1% to 1.9 billion Swiss francs. The growth was driven by watches priced over 3,000 Swiss francs, which increased by 4.3%. Exports to the USA rose by 2.2% and by 5% to China but fell by 11.4% to Germany.

In February 2024, exports fell significantly by 3.8%. However, there was growth in the United States by 5.5%, Japan by 5.6%, Singapore by 3.3%, the United Arab Emirates by 8.9%, and France by 6.1%. However, despite this growth, it was unable to offset the 25.4% decline in China and 19.0% decline in Hong Kong.

In the first two months of 2024, the decline was only 0.7%.

Louis Vuitton Watch Prize for Independent Creatives

The inaugural Louis Vuitton Watch Prize for Independent Creatives was held in February, and Raùl Pagès was awarded the prize for his RP1 trigger regulator. As the winner, he received a €150,000 grant and a year's mentoring at La Fabrique du Temps Louis Vuitton.

Pagès is an expert in antique watch restoration and founded his company in 2012. The winner is a hand-wound steel watch with a caliber equipped with a detent escapement.

The biennial event, created by Jean Arnault, received over 1,000 entries. The five finalists were:

• Petermann Bédat, Ga?l Petermann, and Florian Bédat, independent watchmakers since 2017
• Simon Brette, an independent watchmaker since 2022
• John-Mika?l Flaux, an independent watchmaker since 2018.
• Andreas Strehler and Enrico Santoni have been independent watchmakers since 1995.
• Raúl Pagès has been an independent watchmaker since 2012.

Kering heckled on the stock market

Kering warned on March 19 that its sales were expected to decline "by around 10%" in the first quarter. "This performance reflects, primarily, a sharper decline at Gucci, particularly in Asia-Pacific. As a result, Gucci sales for the three months to March 31 are expected to be down by almost 20% on a comparable basis" (excluding the effects of changes in Group structure and exchange rates), the Group said in a press release. The Group will publish its first-quarter sales on April 23, after the close of trading. "Our priority is to get Gucci back on track", Fran?ois-Henri Pinault reiterated in February. But this "won't happen overnight", he warned. After the replacement of Gucci's artistic designer, Alessandro Michele, by Sabato de Sarno in January 2023, Fran?ois-Henri Pinault appointed one of his closest collaborators, Jean-Fran?ois Palus, Deputy CEO of Kering, as CEO of Gucci. Kering is deploying a strategy to move the Italian label and its other brands upmarket.

Sales of luxury watches and jewelry in France up in 2023

Sales of precious watches and jewelry in France increased by 6% in 2023, a slower pace than in 2022, according to a report published by the French watch and jewelry industry. The French market grew by €300 million compared to 2022, to €5.8 billion excluding taxes, according to the Francéclat report, which changed its calculation method and sources compared to previous years. "However, the momentum is not as strong as between 2021 and 2022 (+26%)," the report stresses. The first half of 2023 was positive, then "the trend reversed before a recovery on the wire" for the end-of-year festivities, Francéclat details.

Specialized retailers account for nearly 80% of total sales. Sales in the boutiques on the Place Vend?me in Paris increased by 6%. Sales by watch retailers outperformed the market (+13%).

Exports of watches and jewelry increased by 8% to 10.6 billion euros, with watch exports strongly concentrated in Europe (Switzerland, Italy, Germany and Spain) and jewelry exports "more geographically diversified" (Switzerland, Italy, the United States, China and Hong Kong).

Imports also increased by 8% to 9.8 billion euros. Stones and pearls accounted for a quarter of jewelry imports, up 17% to 1.7 billion euros. Imports of precious stones increased by 6% to 4.15 billion euros.

Finally, the French watch and jewelry industry (including costume jewelry) employs 14,800 people, according to the study.

Eyewear license

Italian eyewear manufacturer Marcolin and American sneaker brand Skechers renew their licensing agreement for the design, production and worldwide distribution of sunglasses, optical eyewear and children's eyewear until December 2030.

EssilorLuxottica and Dolce & Gabbana announce the early renewal of their license agreement for the development, production and worldwide distribution of eyewear and sunglasses under the Dolce&Gabbana brand. The existing agreement, which came into effect on January 1, 2020 and was due to expire on December 31, 2029, is renewed and replaced by a new 16-year contract, effective from January 1, 2024 to December 31, 2039.

Macy's announces 150 store closures in the U.S.

The closures represent nearly one-third of Macy's U.S. stores and will take place over the next three years.? Macy's also plans to add 15 new Bloomingdale's stores and 30 Bluemercurystores by 2026 to accelerate the growth of its upscale brands.

The announcement follows a $5.8 billion buyout offer made in December by Arkhouse Management and Brigade Capital Management. Macy's rejected the offer, but last week Arkhouse named nine directors to Macy's board as the activist investor continues its efforts. The new strategy, which comes less than a month into CEO Tony Spring's tenure, is expected to free up between $600 million and $750 million in assets by 2026, according to the company.

In the fourth quarter, sales at Macy's stores fell 6% and those at upscale Bloomingdale's stores fell 1.5%. In contrast, sales of beauty and skin care products at Bluemercury rose 2.3%.

Olympic Games and Fashion

Anna Wintour announced at the last fashion week in Paris that a fashion event would be held to open the Olympic Games.

On June 23, a major event organized by Vogue magazine will be held at Place Vend?me. It will be a "glamorous pre-ceremony" with a fashion show, entertainment and surprises. It will be a tribute to one hundred years of French fashion", since the last Paris Olympics in 1924, added Anna Wintour.

Several renowned designers will be taking part in the event. Among them, Jacquemus and Olivier Rousteing, artistic director of Balmain, and Pharrell Williams at Louis Vuitton.

Second Hand

Le Bon Marché launches a second-hand service for luxury goods in partnership with Collector Square

Collector Square, which previously had a pop-up store at Le Bon Marché, is now offering customers the opportunity to sell their luxury watches, bags, and jewelry.?? Customers can drop off their items and receive an on-site appraisal. Within 48 hours, they will be informed whether their item has been accepted and receive a buy-back offer. Rewards are given in the form of vouchers that correspond to 105% of the trade-in value for loyalty cardholders.

New Balance has launched its second-hand program called 'Reconsidered'.

The program, which is accessible on the New Balance website, allows consumers to purchase second-hand shoes, including those returned by customers and models with cosmetic imperfections that cannot be sold as new.

Customers can drop off their slightly used New Balance shoes at the store or send them in. In exchange, customers will receive a voucher for eligible trade-ins that can be used towards their next purchase on NewBalance.com. The value of the voucher will be determined based on the seasonality and condition of the returned products.

The 'Reconsidered' program is currently only available to customers in the United States. In-store returns are being tested at eight points of sale before being extended to other US stores later this year.

Claudie Pierlot launches its "Claudie Seconde Main" service.

The accessible luxury label, founded in 1984 by the eponymous designer and now part of the SMCP portfolio (Maje, Sandro, and Fursac), has introduced its clothing resale service called 'Claudie Seconde Main'? following in the footsteps of Sandro and Maje.

Consumers can send their pieces from past collections to the brand free of charge and receive a voucher valid on Claudie Pierlot's e-commerce site in exchange. The clothes and accessories received, which may be in good condition, very good condition, or new with tags, undergo a strict and proven reconditioning process before being listed on the second-hand site.

This initiative was created in collaboration with Faume, a Paris-based start-up that focuses on high-end and accessible luxury fashion brands. Faume has designed circular offers for several French labels, such as Ba&sh, Dada Sport, and Flair.

Legal

Chanel wins lawsuit against vintage luxury retailer What Goes Around Comes Around.

Chanel has accused New York-based independent vintage retailer What Goes Around Comes Around (WGACA) of selling counterfeits without conducting proper authentication. WGACA is a popular destination for vintage enthusiasts and the fashion industry as a whole, having been founded over 30 years ago. The company is located in a three-story building in SoHo and is the second retailer to face such accusations from Chanel.

The complaint against WGACA was filed in 2018, and the company has announced its intention to appeal.

WGACA acknowledges that Chanel products account for approximately 15% of its total sales. However, Chanel is only the third best-selling brand for WGACA, behind Louis Vuitton and Gucci.

Online sales bans: Rolex France fined €91.6 million?

In December 2023, the French competition authority fined the French subsidiary of Swiss watch manufacturer Rolex €91.6 million. The company had prohibited its distributors from selling its products online for over a decade.

The Autorité de la concurrence, in a press release, considers that the selective distribution contract between Rolex France and its distributors restricts competition, according to the Union de la bijouterie horlogerie and jeweler Pellegrin & Fils. Rolex's decision to ban online sales is considered serious as it closes off a marketing channel, which is detrimental to consumers and distributors..

Rolex cited the need to preserve its image and combat counterfeiting as the reason for the ban. While the Autorité considers these two concerns to be legitimate, it deems the total ban on online sales to be disproportionate to the objectives pursued. The Autorité notes that Rolex's main competitors have implemented solutions, notably technological ones, to reconcile online sales with the fight against counterfeiting and off-network sales.

The €91.6 million fine imposed on Rolex follows a €4 million? penalty imposed on tea producer Mariage Frères, which had already been punished for, among other things, prohibiting online sales of its products.

Although Rolex was accused of entering into a generalized agreement with its distributors to fix the retail selling price of its watches, the French Competition Authority ruled on Tuesday that this practice was not established and dismissed the second complaint.

Verbatime

Vision about Italian luxury market

Renzo Rossi, the Italian entrepreneur who created a luxury group around his company OTB (Jil Sander, Marni, Maison Margiela, Viktor & Rolf, and Diesel), stated at the Altagammasummit in Milan on November 14, 2023:

For small and medium-sized independent brands, it's becoming virtually impossible to grow without making considerable investments. Joining forces has become indispensable. It allows them to reach a critical mass and create synergies in logistics, production, R&D, structural costs, and store locations.

Luxury conglomerates like LVMH and Kering are dominating all spaces in new shopping centers, particularly in Asia. Going solo is not a viable option. For small brands, opening a boutique has become nearly impossible. Therefore, it is preferable to have multiple brands. Companies, especially at the top end of the market, must aggregate because luxury is the only segment that can generate a margin and finance sustainable development and investment. Nowadays, investing in technology is crucial for survival.

According to Alessandra Gritti, Managing Director of investment firm Tamburi Investment Partners, at the Milano Fashion Global Summit on October 23, 2023.

It is known that independent retail sales channels have become problematic for brands. Unless you are part of one of the two major French luxury groups, positioning yourself in the Champions League from the outset is crucial from a retail standpoint. This provides excellent visibility and facilitates finding the right boutique locations. Distribution has become the central element to focus on.

The difficulty of creating a major luxury goods cluster in Italy can be attributed to the country's strong family matrix, which is an asset, but also a weakness due to a high degree of individualism. The bosses of small family businesses struggle to sell their companies. Additionally, unlike in Italy, France has a significant inheritance tax that cannot be overlooked.

Alessandro Binello, CEO and co-founder of management company Quadrivio Group, which has invested in labels such as GCDS and Dondup

believes that independent brands face barriers to entry in distribution. The big French groups are acquiring the best locations. He argues that the era of 'small is beautiful', which once applied so well to Italy's industrial fabric and its Lilliputian champions, is no longer the order of the day. This message must be communicated clearly to entrepreneurs. We require large-scale infrastructure and financing, or we will fail.

Claudia d'Arpizio, a partner at Bain & Company,

predicts an increase in mergers between different luxury brands. She suggests that these mergers will help brands complete their offerings in a wide range of fields, from hotels to gastronomy, to meet the strong demand for experiences. The mergers will also provide greater visibility and enable the gathering of more consumer data. On one hand, reinforcing the brand's strength is more valuable than achieving business success. On the other hand, mergers and acquisitions are becoming the fundamental growth lever in the sector.

Bernard Arnault: Verbatim of the 2023 annual results presentation

Keep going and going…

I have no plans to leave either in the short or medium term. Don't worry, or maybe be very sad, but in principle I'm here for a while yet! I see smiles. That's good... it doesn't create panic among my immediate colleagues.

Need to slowdown people

I'm often told Why do you only do 8% or 9%? I hope we don't do more. I'd rather put on the brakes than push. In this group, I'm lucky enough to have colleagues who need to be slowed down. Pietro (Beccari, Vuitton), I spend my time slowing him down. Delphine (Arnault, Dior) too. Michael (Burke), we don't talk about him... I spent ten years slowing him down at Louis Vuitton!

We have the two strongest brands in the world

This article said that in the LVMH group, in the soft luxury sector, we have the two strongest brands in the world with Vuitton and Dior, and that we have two quite remarkable competitors in this field with Chanel and Hermès. In the hard luxury segment, watches and jewelry, we have two extraordinary brands, Tiffany and Bulgari, and among our competitors is a very successful group, Richemont, with two formidable brands: Cartier and Van Cleef & Arpels. So, of the eight brands I consider the best in the world, we own half. That's not bad at all! We'll see what happens next, if we manage to push the perimeter a little further, or if we manage to encourage certain brands to join the top four.

Looking for Richemont Group?

I consider Mr Rupert (Chairman of the Richemont Group) to be an exceptional leader. I have no desire to interfere with his strategy. I understand he wants to remain independent. I think that's great, and if he needs support to maintain his independence, I'll be there.

Real estate a real job

It's something the group has always done since I took over. We try to secure and buy the best possible locations for our businesses. I've noticed that since we started, we've always had certain locations. We have three of the best on Fifth Avenue or on the Champs-Elysées. What we must avoid is buying locations. It's buying B+ locations at TripleA prices. Unfortunately, some of our competitors don't seem to have fully understood this.