Italian fashion house Prada SpA said on Wednesday that sales grew just 9 percent in the year ended on 31 Jan., hurt by economic weakness in Europe and a stronger euro.
Prada, which makes luxury handbags, shoes, eye glasses and Miu Miu-branded dresses, published a preliminary sales figure of EUR3.59 billion (USD4.9b) for 2013. Analysts on average were expecting EUR3.67b, according to Thomson Reuters data.
India's Department of Commerce said recently it is working to take local artisans to overseas trade shows to expose them to international markets and interact with global luxury retailers.
Speaking at the 2nd India Luxury Summit organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), Dr E.M.S. Natchiappan said the move could give global luxury retailers interact with Indian artisans, understand the issue and come forward for more investments in India.
Oroton Group has managed to stem a slide in sales of luxury handbags, belts and shoes by cutting prices, but the discounting strategy and the cost of launching new brands will come at a cost to earnings.
The upmarket retailer expects earnings before interest and tax for the six months to 25 January to fall almost 24 percent to AUD8 million, even though like-for-like sales are expected to rise 3 percent – a significant turnaround from the second half 2012-13, when like-for-like sales plunged 8 percent.
Four out of five individuals in Shanghai have bought at least one luxury item in the last 12 months, spending on average around USD1,000 on their last purchase, or twice more than the USD500 New Yorkers spent for their last luxury purchase, a new study shows.
ContactLab's Luxury Digital Behaviour Study also reveals that in Shanghai, 25 percent of those intending to make a purchase in the next year said their next bag acquisition will be a gift, spending in total (for themselves or for someone else) as much as USD1,700.
Shauna Mei, founder and chief executive of US luxury e-commerce firm AHAlife, has a passionate mission; to educate mainland Chinese consumers and help them learn more about luxury products.
Premium US fashion house Ralph Lauren on Wednesday reported better-than-expected results for the third quarter of fiscal 2014 (3Q14), lifting revenue growth forecast for the full-year to 7 percent – the high end of its previously projected range of 5-7 percent.
Net income rose 10 percent to USD237 million for the three months ended on 28 December 2013 from USD216m in the same period of the previous fiscal year.
Asia slow down in growth for Ferragamo
For the first time in over 5 years, Italian luxury house of Salvatore Ferragamo registers negative results in Asia. While global sales saw a 9,1% increase in 2013 compared to 2012, the growth rate in Asia dropped to 10 per cent from 18 per cent in 2012. European sales posted an increase of 13 per cent, compared to the same period in 2012 (+18 per cent in 4Q 2013).
Shares in Mulberry plunged by over a quarter last week as the UK luxury fashion company warned annual profit would be well below forecasts due to heavy Christmas discounting in the UK and weak demand in South Korea.
The warning is a blow to Mulberry boss Bruno Guillon, who has hiked prices to take its brand more upmarket from a traditional position of "affordable luxury", and embarked on a drive to increase the company's profile overseas, targeting affluent Asian shoppers with new stores in key tourist spots.
Sales growth at LVMH‘s fashion and leather good unit, its biggest business (which includes its flagship brand Louis Vuitton) increased by 7 percent in the quarter to December 31 from 3 percent in the previous three months, beating analysts’ growth expectations of 4-5 percent. LVMH said the profitability of Louis Vuitton, remained unchanged in 2013 and its upmarket repositioning progressed, but it admitted to production constraints.
We are all to familiar with news of luxury retailers slowing down their rate of expansion in China. Now there is data to show the expansion may be less than expected. According to a recent Knight Frank China Retail Market report, over 60 percent of the 45 international retailers it tracked missed their target number of store openings in 2013.