Kering Group said Wednesday its first-half profit rose 7 percent on strong growth at some of its luxury brands, though a steep decline in sales at its flagship Gucci fashion house exposed how weakness in Asian markets continues to hit luxury firms.
The French group said Gucci’s revenue—which accounts for 37 percent of the group’s total—fell 4.5 percent to USD2.1 billion. Kering Chief Financial Officer Jean-Marc Duplaix said the decline didn’t come as a surprise, as the company expected to see an improvement only in the second half of the year.
German fashion house Hugo Boss on Thursday reported second-quarter sales rose 5 percent, helped by its strategy of running more of its own stores.
Net profit rose 20 percent to EUR62.5 million (USD83.7 million) while sales grew 5 percent to EUR558.9 million, compared with average analyst forecasts of EUR61.4 million and EUR568 million, respectively.
Chinese brides and Indian festivals will drive diamond demand into new year, the CEO of De Beers told CNBC, as the market for the precious jewel continues to rebound.
The US is by far the biggest diamond market in the industry that was worth USD72.1 billion in 2012 but China and India are the fastest-growing, seeing impressive double-digit growth between 2006 and 2012.
LVMH on Thursday posted lower profits and margins on the back of a 3 percent rise in first-half sales that came in below expectations.
The world's biggest luxury group, owner of Hennessy cognac and the Louis Vuitton fashion brand, made a profit from recurring operations of EUR2.576 billion (USD3.47b), down 5 percent from the same period a year earlier.
LVMH posted first-half revenue growth of 3 percent, or 5 percent on a like-for-like basis.
Luxury eyewear giant Luxottica Group reports net profits of EUR393 milion (USD527.8 million) ) for the first half of 2014, compared to the same period 2013. Luxottica’s turnover reached EUR3.9 billion (USD5.2 billion), a 0.5 percent increase on the previous year. Luxottica also renewed its licensing agreeement with Chanel until December 2018.
Italian luxury fashion house Max Mara has opened its biggest store in Asia with the grand opening of its Avenue De Luxe flagship store in Beijing.
Covering four floors, the 800 square-metre store was designed by Duccio Grassi Architects, and is "characterized by a striking illuminated façade, destined to become one of the landmarks of luxury retail in Beijing", according to the company.
Max Mara currently has over 238 stores in nearly 40 Chinese cities in the mainland and has 36 stores in Hong Kong.
French luxury house Hermès reports today that second-quarter sales grew 5.8 percent, a slower sales growth rate than in recent quarters. Hermès said its sales in the second EUR963 million (USD1.3 billion) second quarter, up from EUR910 million (USD13.5 million) last year. Excluding currency fluctuations such as the weakening yen, sales would have increased 9.6 percent.
With majority of Chinese affluent e-commerce shoppers considered aspirational, ambitious and affluent (Gen AAA), consumption of luxury goods among the Chinese continues to surge online, a new report by research firm Agility Research & Strategy.
While global high-end brands are stepping up the battle for Asia's burgeoning luxury shoppers, Geneva-based watch manufacturer Patek Philippe prefers to keep things slow.
"We don't want to put all our eggs in the same basket so we are very careful not to increase too much in Asia," Philippe Stern, honorary president of the 175-year old Swiss firm told CNBC's "Managing Asia".
Burberry, the UK luxury fashion brand, has announced a strong rise in sales but warned that profits could be hit by unfavourable exchange rates.
Retail revenues for the three months to the end of June were GBP370 million (USD633.4m), up almost 10 percent from a year earlier, while like-for-like sales increased by 12 percent.
Sales were particularly strong in mainland China and Hong Kong.