Prada Net Profit Plunged Gucci To Logo Strategic Mistakes

　　 Louis Weedon: two digit growth leading group sales

In 2014, the revenue of LVMH group of Q1, Louis Vuitton parent company was 7 billion 210 million euros (US $9 billion 950 million), an increase of 4% over last year's 6 billion 910 million euros. In 2013, LVMH group's first quarter business income increased by 6% over the same period last year, while the growth rate in 2012 was 25%.

In 2014, Louis Weedon's Q1 increased by 10.7% to 2 billion 639 million euros over the same period of 2 billion 383 million in the 2013 fiscal year, with an organic growth rate of 9%, which surpassed 3% in the first quarter of last year and led all sectors of the group.

　　 Hermes: Japanese market welcomes great benefits

In the first quarter of 2014, Hermes achieved a total revenue of 943 million 500 thousand euros, an increase of 10.1% over the same period last year of 856 million 800 thousand euros. Excluding the exchange rate, the comparable growth rate reached 14.7%, exceeding the market expectations. Same store sales increased by 16.7% year-on-year at fixed exchange rates.

Analysts believe that Hermes's first quarter performance has soars, especially in the Asian market, especially in the Japanese market. However, the Japanese market's contribution to the performance of Hermes is not sustainable.

According to the earnings data, the sales of Hermes in the Japanese market increased by 22% (fixed exchange rate) as a result of the increase in the consumption tax in April 1st and the expectation of consumers to raise prices. Other Asian countries have increased by 18%, especially in the Chinese market. The US market recorded a growth of 18%, and Europe's growth rate was only 8% due to the difficult economic environment.

　　 Gucci "Go to logo" strategic mistakes

Gucci Gucci in 2014 only recorded 0.3% of comparable sales growth of Q1, less than 0.5% of analysts' forecasts, and sales fell by 3.2% to 838 million euros based on actual exchange rate, which was roughly in line with analysts' expectations. In the competition with major rival Louis Weedon, Gucci was completely destroyed.

Compared with LV, Gucci is in the concept of luxury, but it adopts fashion brand's operation mode, and its performance decline is expected. At the same time, Gucci has been advocating its Logo, "de Logo" will undoubtedly give Gucci a fatal blow, so that the brand value is down, and the premium is reduced.

　　 Prada Net profit plummeted.

Prada's sales fell 0.6 percentage points in the first quarter to 777 million euros, while the revenue for the same period last year was 782 million euros. In the same period, operating profit dropped by 20.1%, accounting for 156 million euros, accounting for 20.1% of sales; EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, profit and depreciation before amortization) decreased by 11.2%, to 213 million euros, accounting for 27.5% of sales. The sales volume of 551 direct store stores was 697 million euros, an increase of 2.8% compared with the same period last year.

Affected by exchange rate market volatility and wholesale channel reform, net profit recorded a 23.8% decrease of 105 million euros, compared with 138 million euros in the same period last year.

Prada's overall performance in the Asia Pacific region dropped by 1.2 percentage points to 286 million euros, or about 392 million US dollars, mainly due to the slowdown in South Korea, Hongkong and Singapore. However, the development momentum of brands in mainland China, Macao, Japan and other parts of Asia is still good, with mainland China gaining nearly 20% of its growth. Therefore, Prada believes that the mainland is still a huge market with great potential for development.

　　 Ferragamo:Q1 good performance in Asia Pacific target market

Ferragamo's first quarter sales rose 6 percentage points, 299 million euros, or about 496 million US dollars. Last year, its sales performance was 282 million euros, or 372 million US dollars.

In terms of net profit, Ferragamo increased by 2% compared to the same period last year, reaching 27 million euros, or about 37 million yuan, mainly due to the growth of important markets and the development of leather ornaments and footwear products. Meanwhile, brand profits increased by 1 million euros, 1 million 370 thousand US dollars, and operating profit increased by 7 percentage points to 42 million euros, or about 57 million 500 thousand US dollars.

The Asia Pacific region was once the main target market for Ferragamo, an increase of 5.3% over the same period, accounting for 36.4% of the total global performance. China's retail business is particularly impressive, with a growth rate of more than 10%.