US leather-goods retailer Coach, Inc. on Tuesday said sales rose 19 percent to USD1.26 billion for the second fiscal quarter ended on 1 January 2011 from USD1.07b last year. Net income for the quarter jumped 26 percent to USD303 million.
Direct-to-consumer sales increased 17 percent to USD1.10b from USD934m last year. Japan sales were even on a constant-currency basis, while dollar sales rose 8 percent driven by a stronger yen. China sales remained robust, as POS sales continued to comp at a double-digit rate.
Swiss luxury goods holding company Richemont reported a 23 percent sales growth for the three months ended 31 December 2010. The growth was broad-based, with the highest rate reported in the Asia-Pacific region, the company said in an official statement.
Swiss luxury goods group Richemont on Friday announced its unaudited consolidated results for the six month period ended on 30 September 2010.
Sales increased by 37 percent at actual exchange rates to EUR3.26 billion (USD4.41b) from EUR2.38b in the same period last year. At constant exchange rates and excluding the impact of the acquisition of NET-A-PORTER.COM in April 2010, sales increased by 22 percent. Gross profit grew 44 percent from EUR1.46b to EUR2.11b.
In an interview to the Australian, Jean-Christophe Babic, CEO of Bulgari (LVMH Group) said: ”I think per capita Australia might be our number one country in the world. Our turnover is pretty high there and you know better than I that there are fewer people compared to Beijing, where we sit today."
Shares of Italian fashion house Prada have lost over a third of their value this year amid sagging demand in Asia and Europe, raising questions over whether the luxury brand is going out of style.
The company suffered a 44 percent on-year profit decline to EUR74.5 million (USD92m) in the three months to end-October as sales of high-margin leather goods slumped.
Prada faces intensifying competition from affordable luxury goods makers including Michael Kors and Tory Burch, offering products at cheaper prices with hefty marketing campaigns, say analysts.
Luxury goods retailer Oroton has forecast a return to "modest" underlying growth this financial year and declared its campaign with Australian actress Rose Byrne is showing "very positive results."
The full-year forecast comes despite the company flagging a fall in earnings for the first half, due to reduced discounting for its flagship Oroton brand, a potential onerous lease provision in Hong Kong and continued investment in its new business, Brooks Brothers.
Luxury brands have been improving the shopping experience for their customers through their digital presence. Thanks to e-commerce, more luxury brands are now breaking down the physical boundaries of new markets such as China. Analysts at Credit Suisse indicate that the online sale will be the main growth driver for luxury brands by 2018.
British Burberry model Jourdan Dunn hosted an event to celebrate the brand’s new store in heart of Omotesando, Tokyo recently.
The in-store cocktail event, was attended by over 400 guests including Burberry models Ryohei Yamada and Charlie France, as well as Rihito, Tenko, Nanae Ubukata, Ayana Miyamoto, Miho Shida and Shohei Yamashita, all of whom wore Burberry. British DJ Mark Birtles of Tokyo Indie performed a live set.
Not all European luxury-goods makers are singing the blues about sales in China. Lately, it simply pays to not be a megabrand. While marquee names like Louis Vuitton, Gucci and Burberry are feeling the pain of slowing growth rates in Asia, smaller brands, such as super-expensive cashmere clothing maker Brunello Cucinelli SpA, posted significantly higher sales in the region.
Burberry reported posted strong growth in the first half of the year, with revenues increasing 14 percent and profits by 6 percent.
"This performance reflects the passion and commitment of our teams around the world and the great momentum of the brand," said Christopher Bailey, Chief Creative and Chief Executive Officer.
The company said the growth targets were achieved despite a more difficult environment, many driven by focused strategies to drive momentum, product excellence and customer experiences, both online and offline.