LVMH Has Become The Worst Performing Luxury Listed Company In European Stock Market.

< p > LVMH is the worst performing a href= "http://www.91se91.com/news/index_c.asp" in the European stock market this year.

The difficulties faced by LV, a big profit maker in the group, has put great pressure on the future growth and profitability of the world's largest luxury group.

LVMH shares are one of the blue chips of Paris CAC 40 index.

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< p > HSBC analyst Antoine Belge said, "LVMH's position in the stock market has changed.

Investors prefer higher growth groups such as peaks, or smaller but more flexible companies.

By the end of last Thursday, the group's share price fell by 6.3% compared with the beginning of January. By contrast, its rival group rose 21.3%, Hermes grew 11.4%, Swatch (Swatch) grew 24.7%, Burberry grew 18.3%.

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< p > as for Kai Yun group, although GUCCI has fallen sharply, the group still recorded an increase of 8% due to the growth of other luxury brands such as "a href=" http://www.91se91.com/news/index_c.asp "Po Ti Jia" /a (Bottega Veneta) or Saint Laurent (Saint Laurent).

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< p > LV is standing in step.

It has been involved in the scale problem - its sales volume exceeds 7 billion 500 million euros, and its products are becoming more and more popular and lack of exclusive characteristics.

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Less than P, LV's canvas bag still accounts for 2/3 of its sales, but its attractiveness is not as good as it used to be.

According to analyst estimates, its organic growth in the third quarter has dropped to 1% or 2%.

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The P brand is also aware of this dilemma. It repositioned its products this summer and launched its super high-end leather bag at a price of more than 3000 euros, hoping to satisfy consumers who are tired of canvas bags.

But its growth rate is lower than expected.

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< p > for LV, 2014 will probably be the same as in 2013. Antoine Belge said, "at least in the first half of this year".

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< p > in the stock market, < a href= "http://www.91se91.com/news/index_c.asp" > LVMH < /a > has also been affected by many strong growth competitors, especially the new stock of Italy stock market, such as shoe brand Ferragamo and cashmere brand Brunello Cucinelli respectively recorded an increase of 67.8% and 90.5% respectively.

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P, which owns Cartire and Van Cleef & Arpels (Van Cleef & Arpels) brand, has made full use of its strong position in the jewelry industry.

The jewelry industry is seen as a more promising future than the current competitive leather industry.

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"P Luca Solca, a bank analyst in Paris, France, said:" we feel that the jewelry industry has greater advantages in terms of growth, fewer industry companies, and big brands are still very few.

Population aging also plays a role.

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Analysts at Citibank P recently also said that LVMH group is facing "uncertain growth and profitability prospects, while the joint structure of the group is growing. Most acquisitions (23% of Hermes, Bvlgari and Loro Piana) have also diluted group profits and return on investment funds".

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< p > the Paris CAC 40 index has recorded a 14.7% increase since the beginning of January this year. In the constituent stock of this index, LVMH group is at the end, only higher than Pernod Ricard (-7.9%), Alstom (-14.4%) and Technip (-25%) and other companies.

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