Tag: Luxury goods

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Luxury brand Gucci-owner Kering share price hits a seven-year low after weak forecast

Luxury goods

Kering, the owner of Gucci, experienced a drop in its share value on Thursday 25th July 2024 following the announcement of a significant revenue decrease in the first half of the year, coupled with a subdued outlook for the latter half.

Kering’s shares fell by up to 9% as the markets opened, trading at levels not seen since August 2017.

Kering one year share price chart 24th July 2024 (am)

Kering one year share price chart 24th July 2024 (am)

The luxury group announced late Wednesday 24th July 2024 that its revenue dropped by 11% in the first half of 2024, in comparison to the same period the previous year. The company reportedly attributed the decline to a slowing market in most regions, with the exception of Japan.

Kering are not alone in suffering a drop in share value, as luxury brands including LVMH and Burberry also experienced weaker trade declines noted in recent reports.

A deceleration of luxury purchases in China is cited as one of the major reasons for the declines.

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World’s largest luxury group LVMH slumps after Q2 revenue miss

Luxury

Shares in LVMH fell on Wednesday after the luxury group on Tuesday 23rd July 2024 released its earnings for the first half of 2024

Shares in the world’s largest luxury group LVMH pulled-back on Wednesday 24th July 2024 after its second-quarter sales came in below analysts expectations

Other luxury sector stocks, including Gucci-owner Kering which is set to report earnings on Wednesday 24th July, also retreated.

LVMH one year share price chart from July 2023

LVMH one year share price chart from July 2023
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Burberry share price slides as company announces profit warning

Luxury goods

Burberry shares slide on Monday 15th July 2024 after the UK luxury fashion group announced a profit warning and a dividend halt and said its chief executive officer (CEO) was being replaced.

The maker of the iconic trench coat described a ‘disappointing’ fiscal first-quarter 2025 in a trading update.

Burberry reportedly said that if the recent trading slowdown continues, it expects to report an operating loss for the first half of this year and full-year operating profit below current consensus.

Shares in the 168-year-old British luxury giant were down 15% on Monday 15th July 2024 in early London trading.

Burberry share price falls to around 745 on Monday 15th July 2024 – one year share price chart

Burberry share price falls to around 745 on Monday 15th July 2024 – one year share price chart
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What is Quiet Luxury?

Quiet Luxury

Quiet luxury is a fashion trend that emphasizes understated elegance, timeless style, and high-quality materials.

It is the opposite of flashy logos, loud colors, and fast fashion. Quiet luxury is about investing in pieces that are durable, versatile, and refined. 

Some examples of quiet luxury brands are Hermes, Prada-owned Miu Miu, Brunello Cucinelli, Compagnie Financière Richemont and Swatch Group, The Row, Totême, Tove and LVMH. Quiet luxury is also influenced by social changes, popular culture, and economic factors. It reflects a desire for simplicity, sophistication, and sustainability in a seemingly never-ending chaotic world.

Quiet luxury was one of last year’s biggest viral fashion trends, but unlike other short-lived fads on TikTok or Instagram, this one has made its way into investor portfolios and shown lucrative returns.

Luxury stocks have long been regarded by some as an effective hedge against inflation.

LVMH success – one way to invest in luxury

LVMH shares jumped more than 8% on Friday 26th January 2024, after the world’s largest luxury group posted higher-than-expected sales for 2023 and raised its annual dividend.

The owner of Louis Vuitton, Moët & Chandon and Hennessy, as well as brands including Givenchy, Bulgari and Sephora, on Thursday night 25th January 2024 reported sales amounting to 86.15 billion euros ($93.34 billion) for 2023, forecasts. This equated to a 13% growth from the previous year.

The result was boosted in particular by 14% annual growth in the critical fashion and leather goods sector, along with 11% growth in perfumes and cosmetics. Wines and spirits meanwhile posted a 4% decline.

Bernard Arnault is one of the top 10 wealthiest people in the world.

Is there room in your portfolio for a luxury brand?