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Luxury, safe haven for investors

By FashionUnited

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Fashion

With largest luxury goods groups posting two digit increase in their respective quarter figures, luxury market proves to keep fit and in the run for savvy investors. LVMH recorded a 25% increase, as well as competitor Christian Dior.



The
luxury world doesn’t seem to be suffering the financial stretches, but all the contrary. LVMH Group is sticking to its strategic acquisitions pipeline, enhancing their portfolio in growing markets, mainly in Asia. Also Christian Dior has made its bet for fashion forward investors with the hiring of Raf Simons as its new artistic director, seven months after its icon, John Galliano, was convicted by a Paris court for anti-Semitic ravings. Both strategies are working well, with an even growing number of institutional and individual investors greedily buying the luxury houses’ stocks.

LVMH Moët Hennessy Louis Vuitton, the world’s leading high quality products group, recorded a 25% increase in first quarter 2012 revenue to 6.6 billion Euros. Organic revenue growth was 14% compared to the same period in 2011. “Fendi had a good start to the year and continued the renovation of its store network. The other brands saw rapid growth in their activities. Céline in particular recorded strong revenue growth due to the success of its collections,” summed up the French luxury giant in a communication.

Best performer though was the Fashion & Leather Goods, which continued its double-digit growth thanks to sustained demand across all of its product categories. The other brands continued their rapid expansion.

In the same vein, The Christian Dior Group posted a 25.5% increase in first quarter 2012 revenue to 6.9 billion Euros. Asia and the United States took the lead to drive growth, while Europe went down to a second tier.

Christian Dior Couture first quarter revenues amounted to 284 million Euros, an increase of 29% at current exchange rates and of 24% at constant exchange rates. Retail activities recorded revenue growth of 41% at current exchange rates and of 35% at constant exchange rates, reflecting a positive momentum in Europe, America and Asia, which recorded strong growth.

“In an economic environment which remains uncertain in Europe, the Christian Dior Group will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution. The Group will rely on the talent and motivation of its teams, the diversification of its businesses and the good geographical balance of its revenues to increase, once again in 2012, its leadership of the global high quality products market.”

Photo: Christian Dior SS12
Christian Dior
LVMH