How To Maintain Brand Sales Of Luxury Stocks During The Concussion Period?

The sharp fall in Burberry came from the second quarter sales growth of only 11.2%, down from 16.1% in the previous quarter.

The stock market is a barometer of the real economy.

In April, the stock price reached 16.05 when the stock price was the highest. The capital market is obviously not optimistic about the future growth of Burberry.

Interestingly, however, Burberry recently opened 44 thousand square feet of the world's largest flagship store in London. It seems that management has confidence in the company's future and has always left consumers with the best impression on brand building: people will not find the company's share price down anywhere.

Burberry began to increase revenue and reduce expenditure, such as reducing first class travel expenses, reducing marketing expenses and IT input.

Overall, top luxury companies are facing downward pressure on growth.

Richemont's sales increased by 23% in the five months ended August 31st, mainly from the depreciation of the euro.

In fact, the sales growth at a constant exchange rate is only 13%.

Considering that the peak group is mainly focused on high-end watches and jewelry, and coincides with the frequent appearance of official watches on the Chinese Internet, the future situation is still hard to predict.

The second quarter performance of PPR is fairly good, but the growth rate of LVMH brands has declined. The quarterly growth rate of PPR's flagship brand Gucci has dropped from 11.6% to 10%.

Hermes seems to be the only sales unaffected.

In the first half of the year, sales rose in the first half of the year. At the beginning of 28%:9, Hermes first brought the women's wear show to China, and the flagship store of Hermes Hang Lung Plaza extended in mid September, and the store area increased from 180 square meters to 540 square meters.

Unfortunately, even if Hermes delivered such a perfect answer, the stock price reaction was still poor.

Compared with the highest 290 Euro share price in February this year, it fell by nearly 25%.

However, not all luxury stocks show a downward trend, and many even rise all the way.

For example, at the beginning of Prada, 35 Hong Kong dollars, now 61 Hong Kong dollars; Ferragamo at the beginning of 10 euros, now 17 euros; Tod 's at the beginning of 60 euros, now nearly 90 euros; Michael Kors at the beginning of 27 U. S. dollars, now 53 dollars.

It is because of the higher share price, Michael

The majority shareholder of Kors will decide to sell part of the stock to earn investment income.

By comparison, the share prices of LVMH and PPR rose slightly from around 110 euros at the beginning of the year to around 125 euros.

The two luxury group companies are in a market monopoly, and the share price itself is already high. Moreover, luxury goods companies are retail enterprises after all, and stock prices can not be as unlimited as Apple Corp.

Investors buy stocks mainly depends on future expectations. Only by continuous rapid growth can they maintain and push up share prices.

After the financial crisis, luxury brands have been growing rapidly for several years, and there is little possibility that they will continue to maintain high growth in the future.

However, the fall in share prices will not affect the operation of the company itself too much.

Burberry has reduced the wholesale business through the past few years, and has resumed the right to operate the direct shop. The pformation has made 60% of sales from self operated channels, and the uncertainty of sales is not large.

Of course, luxury goods are heavily influenced by the environment. Especially when China is a global luxury engine, if it fails, it will inevitably affect the overall performance, which is reflected in the stock price of luxury brands.

However, it is precisely because of this cyclical nature that new investment opportunities will emerge and the LVMH war Hermes will emerge.

By contrast, unlisted luxury companies are free.

Etro, which reclaims the right to operate the country, will invest heavily next year, while Armani may be able to hide its potential. It is said that the market budget will be reduced by 90%.