As luxury growth normalises, what’s ahead?
Vogue Business
Fashion’s global perspective. Join our community for industry insight and analysis from the Vogue Business team.
Welcome to the weekly?#VogueBusiness?LinkedIn newsletter. Each week, we’ll be sharing a roundup of some of the biggest stories in the fashion and beauty industries.?The global luxury groups’ first-half financial figures are all in. The big takeaway? Luxury executives and analysts alike say America is a weak spot, with sales slipping back after a period of post-lockdown euphoria. What does this mean?
“The results have mostly been in line with expectations. That contrasts with the growth rates reported in the first quarter, which were mainly above market expectations,” says Carole Madjo, Barclays head of European luxury goods research.
“Some normalisation is likely to happen. The growth rates seen in the sector over the past few years have been quite high. We would expect the sector to see a gradual return towards more sustainable growth levels"
Most luxury players have felt the pinch in the US as aspirational customers pulled back on spending.?Richemont reported global sales up 19 per cent in the quarter?ending 30 June, below consensus expectations (at 20%) — with a 2 per cent fall in revenue from the Americas.?
LVMH shares decreased 3.7 per cent after the group reported?sales up 17 per cent?with a 1 per cent decline in the US. “We experienced a bit of pressure with the American customer, to varying degrees amongst brands,” LVMH CFO Jean-Jacques Guiony said.?
Whereas Hermès bucked the trend, posting?sales up 19 per cent in the Americas. Here's how.
Alongside this, luxury players have spent heavily on events in the first half - from Louis Vuitton to Moncler. Are big budgets needed?
领英推荐
The sector is expected to grow in the high-single/low-double digits for the full year, a period of normalisation after spending boosted by post-lockdown euphoria.?
Discover the full report with exclusive insights, expertise and data here.
Not a #VogueBusiness Member yet? Make the most of the summer sale, using code SUMMER23 - to save 20% on Membership for a limited time.
Elsewhere in the industry this week
Ralph Lauren is expanding its presence on survival game Fortnite, as gaming proves to be a long-term strategy for luxury brands.
Prada is venturing further into the competitive beauty space with the launch of makeup and skincare.
Jewellery’s potential as a solid investment is encouraging luxury brands to step up their offer, but supply chain concerns continue to trouble the sector.
How Mother of Pearl shifted to a more sustainable business model.
And scrutiny against ultra-fast fashion retailer?Shein?is coming to a head in the US, where a pileup of lawsuits and investigations could threaten its plans for a takeover of the market — if Congress decides to take?legislative action.
WI HR CONSULTANT
1 年WI HR CONSULTANT requires Head of Marketing for Top Leading Textile Industry to be based in Germany ???? Candidates must have 10-15 years Textile Exp Note: Candidates currently residing in Germany will be considered for this position Salary : 5000 Euro to 7000 Euro with other attractive benefits will be offered. Share your cv ( mention your post in subject) [email protected]
Designer @ Diamonds in the Raw | Jewelry Design, Gemology
1 年It will interesting to see how luxury evolves with a dynamic whole market customer. To pivot quickly, provide, and address luxe consumer wants in a really wide open Indie heavy market while retaining and growing traditional old school? Looking forward to exciting original possibilities…if they can accept the dynamics of change?
@koffibronson007
1 年??
I Launch & Scale Premium Brands with a laser focus on Customer Acquisition and Brand Management. Luxury | Beauty | Fashion | Tech are our playground. Let’s elevate your vision. DM me. Let's go. ????
1 年Let’s look at the facts. The big dogs in the luxury space, they’ve been feeling the squeeze in the US, with customers reigning in their spending. Even the heavy hitters like Richemont and LVMH have seen their sales drop in the Americas. But then you’ve got Hermès out here making moves and actually seeing an increase in sales in the US. How’d they do it? We’ll get into that. On top of this, these luxury brands have been dropping some serious coin on events. From Louis Vuitton to Moncler, they’re all in. But is that the right move? Do they really need these big budgets? And peep this: Ralph Lauren is hopping on the Fortnite wave. Gaming’s not just a trend, it’s a legit long-term strategy for these luxury brands. So y’all might wanna subscribe to stay up on game with these insights. This is a whole new ball game, my people!