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17-10-2010, 01:19 AM
Now, what is LVMH??
Go ask your female buddies, girlfriends or wives and you will receive a unanimous roar of reply "ITS LOUIS VUTTON YOU DUMBWIT!"
So, why do i post this article below?
Simple. When would one buy more LVs? When the recession is looming around the corner or when the economies is picking up.
LVs, Guccis, Coach, Pradas and etc etc are luxury goods. They are an important indicators of the economy well-being ahead of us.
I wouldn't dare to say the indicators forecast further than 12 months down the road though. Anything can change, recall 97 Asian currencies crisis.
Still, this article is a piece of good news to all the investors and traders (long) out there.
And oh.. the article is saying LV and other luxury goods are gonna raise their prices soon.
So if you guys are going to get your beloved that bag she has been eyeing for last Christmas, go get it now before even the appreciation of Sing dollar cannot compensate for the price increase.
http://online.wsj.com/article/SB10001424..._whatsNews
PARIS, French luxury-goods company LVMH Moet Hennessy Louis Vuitton reported a 24% jump in third-quarter sales, confirming a strong rebound for luxury products from champagne to high-end watches.
Sales at the world's largest luxury company rose to ~5.11 billion ($7.13 bilion) from ~4.14 billion in the year-earlier quarter. All divisions posted double-digit growth.
For the rest of the year, "we should be balancing optimism and caution," LVMH Finance Director Jean Jacques Guiony said in a conference call. He said the restocking by retailers that boosted LVMH's performance earlier this year had ended but the company was still performing well, which was cause for optimism. He warned, however, of less favorable currency rates and tougher quarterly comparisons to come, particularly in the U.S.
The fashion and leather goods division, home to luggage maker Louis Vuitton, which was one of the industry's top performers throughout the crisis, continued its brisk pace of growth, up 26% to ~1.95 billion. The company raised prices of its Louis Vuitton products by an average of 9% in Europe in recent weeks, the first time it has implemented price increases since the crisis. Sales of those products have exceeded LVMH expectations, and capacity constraints have prompted the company to temporarily shorten hours of some stores in France.
Overall, LVMH said its performance so far this year "confirmed its confidence for 2010," as it enters the all important end-of-year period, which accounts for a large proportion of annual sales.
At the selective retailing unit, which owns DFS duty free shops in airports and the Sephora cosmetics chain, rose 24%, and the company said Asian tourism is on the rise. That's a positive sign for the sector as a whole, which generates a lot of business from travelers shopping abroad.
The wine and spirits division, closely watched this quarter for signs of improved consumer demand, posted a 24% rise in sales to ~846 million. The division, which sells Veuve Clicquot champagne, suffered during the financial crisis but recently rebounded sharply as retailers began restocking their stores and consumer demand returned.
Watches and jewelry, another area that suffered from destocking by retailers, also improved, with sales rising 31% to ~244 million.
LVMH expressed interest in expanding in "the most promising markets." Luxury companies are scrambling to expand in Asia, especially China, as the country's growth gives rise to a new wave of consumers seeking high-end goods.
Luxury goods companies have been particularly cautious in calling a return to growth in the sector after the economic crisis abruptly ended years of fast growth. But LVMH is the second luxury goods company this week to sound an upbeat note about the sector's recovery.
U.K. fashion retailer Burberry Group PLC Wednesday increased its full-year guidance for wholesale revenue in the second half after sales of watches and perfumes beat the company's projections.
Write to Mimosa Spencer at mimosa.spencer@dowjones.com
Go ask your female buddies, girlfriends or wives and you will receive a unanimous roar of reply "ITS LOUIS VUTTON YOU DUMBWIT!"
So, why do i post this article below?
Simple. When would one buy more LVs? When the recession is looming around the corner or when the economies is picking up.
LVs, Guccis, Coach, Pradas and etc etc are luxury goods. They are an important indicators of the economy well-being ahead of us.
I wouldn't dare to say the indicators forecast further than 12 months down the road though. Anything can change, recall 97 Asian currencies crisis.
Still, this article is a piece of good news to all the investors and traders (long) out there.
And oh.. the article is saying LV and other luxury goods are gonna raise their prices soon.
So if you guys are going to get your beloved that bag she has been eyeing for last Christmas, go get it now before even the appreciation of Sing dollar cannot compensate for the price increase.
http://online.wsj.com/article/SB10001424..._whatsNews
PARIS, French luxury-goods company LVMH Moet Hennessy Louis Vuitton reported a 24% jump in third-quarter sales, confirming a strong rebound for luxury products from champagne to high-end watches.
Sales at the world's largest luxury company rose to ~5.11 billion ($7.13 bilion) from ~4.14 billion in the year-earlier quarter. All divisions posted double-digit growth.
For the rest of the year, "we should be balancing optimism and caution," LVMH Finance Director Jean Jacques Guiony said in a conference call. He said the restocking by retailers that boosted LVMH's performance earlier this year had ended but the company was still performing well, which was cause for optimism. He warned, however, of less favorable currency rates and tougher quarterly comparisons to come, particularly in the U.S.
The fashion and leather goods division, home to luggage maker Louis Vuitton, which was one of the industry's top performers throughout the crisis, continued its brisk pace of growth, up 26% to ~1.95 billion. The company raised prices of its Louis Vuitton products by an average of 9% in Europe in recent weeks, the first time it has implemented price increases since the crisis. Sales of those products have exceeded LVMH expectations, and capacity constraints have prompted the company to temporarily shorten hours of some stores in France.
Overall, LVMH said its performance so far this year "confirmed its confidence for 2010," as it enters the all important end-of-year period, which accounts for a large proportion of annual sales.
At the selective retailing unit, which owns DFS duty free shops in airports and the Sephora cosmetics chain, rose 24%, and the company said Asian tourism is on the rise. That's a positive sign for the sector as a whole, which generates a lot of business from travelers shopping abroad.
The wine and spirits division, closely watched this quarter for signs of improved consumer demand, posted a 24% rise in sales to ~846 million. The division, which sells Veuve Clicquot champagne, suffered during the financial crisis but recently rebounded sharply as retailers began restocking their stores and consumer demand returned.
Watches and jewelry, another area that suffered from destocking by retailers, also improved, with sales rising 31% to ~244 million.
LVMH expressed interest in expanding in "the most promising markets." Luxury companies are scrambling to expand in Asia, especially China, as the country's growth gives rise to a new wave of consumers seeking high-end goods.
Luxury goods companies have been particularly cautious in calling a return to growth in the sector after the economic crisis abruptly ended years of fast growth. But LVMH is the second luxury goods company this week to sound an upbeat note about the sector's recovery.
U.K. fashion retailer Burberry Group PLC Wednesday increased its full-year guidance for wholesale revenue in the second half after sales of watches and perfumes beat the company's projections.
Write to Mimosa Spencer at mimosa.spencer@dowjones.com
