Luxury Industry: Fashion Economy Seems To Have Signs Of Recovery

British luxury group Burberry released the first quarter of the 2015/2016 fiscal year (30 ~6 April 1, 2015), showing that retail sales amounted to 407 million pounds, an increase of 8% over the fixed exchange rate (10%), an increase of 13% over the second half of the fiscal year of 2014/2015, an increase of 6% over the same period last year, or a 12% increase in the same period in 2014 and a 9% increase in the financial year of 2014/2015.

LVMH, the world's largest luxury goods group, released its interim results yesterday. The LVMH group's total revenue rose by 19.3% in the first half of fiscal year ending June, from 14 billion 9 million euros a year earlier to 16 billion 707 million euros, an organic growth of 6%. Operating profit from continuing operations was 2 billion 955 million euros, up 14.7% from 2 billion 576 million a year earlier.

The growth in the first half mainly depends on the increase in the second quarter. The company said its group revenue increased 23% and organic growth 9% in the second quarter.

LVMH group's most focused fashion and leather goods sector revenue increased 18% in the first half to 5 billion 933 million euros, with an organic growth of 5%. The first half of this year's operating profit from continuing business increased 11.7% to 1 billion 661 million euros. However, due to the continued weakness of the Chinese mainland market and the continued deterioration of the Hong Kong and Macao market, the share of the Asia Pacific market (except Japan) dominated by the Greater China region further shrank from 31% in the same period last year and 30% in 2014 to 29% in the first half of the year. In the first half of this year, the Department added a net new store 16, far less than the 56 in the second half of 2014, which is the same as that of the same period last year.

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The group's performance in the first half of the year was good, while the latest announcement by Kering, another big luxury group in France, also showed that its overall revenue in the first half of the year was 5 billion 512 million 500 thousand euros, up 17% from 4 billion 710 million 400 thousand in the same period last year, up 3.5% from the base.

Among them, the luxury sector increased by 17.8%, from 3 billion 193 million 600 thousand euros in the same period last year to 3 billion 762 million euros, an increase of 2.8% on the basis of that; the sports and lifestyle sectors grew 15.5% in the first half of the year to 1 billion 731 million euros, a growth rate of 5.3% over the basis of the luxury sector.

France

Hermes announced that the second quarter revenue grew by 22.2% to 1 billion 170 million euros annually, and the growth of the Japanese market offset the slowdown in Hongkong and Macao markets.

Period deduction

After the factor, the annual revenue growth is 9.7%.

The company's revenue in Japan in the second quarter grew by 26.5% in fixed exchange rates, accelerating by 15% over the first quarter.

"Although many luxury group performance looks like two digit growth, it can only be described as a steady growth in comparable revenue growth."

A luxury industry insider told reporters that the sales growth of many companies was influenced by exchange rate factors, or by new stores, or by the increase of discounts, or by the growth of stock sales generated through the capital market. "Luxury market is far from being described as warming up."