The Luxury Industry Is Facing A Black Wednesday.

Global Luxury industry The prospect is uncertain. On Wednesday, the French Herm s (Hermes), the Swiss Richemont (the peak group) and the Italy Tod "s group" issued a very optimistic financial report and performance expectations, which led to a sharp fall in their share price.

Herm s (Hermes)

Although the financial data of the Hermes group in the first half of the fiscal year is acceptable, investors' confidence in the luxury giant seems to have shaken.

Hermes's stock price was 386.50 euros on Tuesday, while Hermes's share price was 353.05 euros on Wednesday, and it fell 8.7% all day.

The overall turmoil in the luxury environment has also had a great impact on Hermes. At present, Herm s is the only European provider of specific forecast data for sales growth. Luxury brand 。 Herm's s CEO Axel Dumas said at a press conference on Wednesday that at present, the economic environment and exchange rate are unstable, the group will no longer produce annual forecast data, but he stressed that the group's goal will still be locked into "winning the market."

Axel Dumas said that sales in three places, including nice, Garner and Paris, were hit hard after the terrorist attacks on 14 7. A large number of tourists turned to Milan and London to buy luxury goods, which had a great impact on the sales volume of the group.

Although declined to disclose the sales of Hermes in July and August, Axel Dumas said the second quarter trend will continue to the third quarter.

In the second quarter earnings report released in July, Herm s expects the comparable sales volume for the year to be lower than the medium-term growth target set up before (+8%), and the target was two years ago (+10%).

The market believes that Herm s reduces annual sales growth expectations, which means that the leader of this luxury industry will return to normal from high growth in the future.

In the first half of fiscal year ending June, Hermes sales revenue was 2 billion 440 million euros, an increase of 7% over the same period of exchange rate, a net profit of 545 million euros, an increase of 13% over the same period last year. Sales in mainland China continued to rise, and Hongkong and Macao did not have any impact on the market. Leather goods and horse gear increased by 16% over the same period, showing the most outstanding performance. The production capacity of leather goods and harnesses increased by 8% over the past year due to the new producers and production facilities.

Despite the crash, Hermes's stock price rose by 13.2% this year as of Wednesday.

Richemont (peak group)

In the first half of the fiscal year, the performance of the peak group was much lower than that of Hermes, and sales fell for the first five months, and the profit fell by 45%.

When the market closed on Tuesday, the price of the group was 60.05 Swiss francs, and 57.30 Swiss francs fell to 4.6% on Wednesday.

For the luxury industry prospect Pessimistic: "we believe that the current negative trend will continue and will not improve in the short term."

In the first five months of the 2016/2017 fiscal year of August, the sales volume of the group fell 14%, up from 11.3% of analysts' estimates, of which the sales of jewellery brands dropped by 16%.

In the first five months, sales in all major markets declined, with Europe, the Middle East and Japan falling to 2 digits. Both mainland and South Korea achieved sales growth, but continued weakness in Hongkong and Macao offset this growth.

In addition, the continued weakness of the luxury watch market has had a huge impact on the performance of the group and forced it to buy a large number of surplus stock watches in Hongkong. Prior to that, the group also said that it would reduce costs through layoffs.

However, despite the poor performance of the group, analysts have confidence in their share price. Many analysts rated the stock rating of the group as "buying" while the Bank of Paris held that the consumption demand of the watch market has begun to pick up.

Since 2016, the stock price of the group has fallen by 20.5% as of Wednesday.

Tod 's Group SpA

When Tuesday closed, Tod 's group's share price was 53.15 euros, and closed to the market on Wednesday, the stock price was 51.70 euros, and fell 4.4% worldwide. When Tod opened on Thursday, shares of the Tod 's group fell 4.4% again.

According to the latest financial report, in the first half of fiscal year, Tod 's group net profit fell 25.6% compared with the same period last year, and sales fell 3.4% year-on-year.

To cope with the bad market environment, from January this year, the Tod 's group has closed 8 sales outlets, and will open new stores in 2017. The number of new stores will be in single digits, and the number of closed stores will be flat. The number of stores will be flat.

Analysts predict that the sales of Tod 's group will be 1 billion 19 million euros in 2016, slightly less than 1 billion 20 million euros in the same period last year.

In the first half of the fiscal year, sales of Tod 's group in Italy and other parts of Europe declined, especially in France and Britain. Sales in Greater China declined by 9.5% due to the weakness of Hongkong and Macao. Although sales in other markets have increased year by year, they can not make up for the overall downturn.

However, Tod 's group is confident of its performance in the second half of the fiscal year. It is expected that sales and profits will rise year-on-year and will continue to provide dividends to shareholders.

As of Wednesday, 2016, the share price of Tod 's group has fallen by 29.2%.