LVMH Organic Growth In The First Half Of 6%

By the end of June, in the first half of fiscal year,

Total revenue rose 19.3%, from 14 billion 9 million euros in the same period last year to 16 billion 707 million euros, exceeding the expected 16 billion 350 million euros in Thomson Reuters, an organic growth of 6%.

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The operating profit recorded 2 billion 955 million euros, up 14.7% from 2 billion 576 million euros in the same period last year, exceeding the 2 billion 930 million euros expected by Peng Bo.

The growth in the first half mainly depends on the increase in the two quarter. The company said its group revenue increased 23% and organic growth 9% in the two quarter.

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And Chinese tourists flooded into the US and European markets for shopping. LVMH performed well in the first half of the year. However, the Asia Pacific region (except Japan), represented by greater China, remained weak, especially in the deterioration of Hong Kong and Macao, and the second cliff breaking slump in the A shares in the year provided uncertainty for the future of LVMH.

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Since the retail downturn, Giordano, a local clothing company, has refused to pay the rent and has closed some of its losses in the first half of the year.

The chief financial officer, Ren Yong Wen, pointed out that Giordano's positioning was popular, and its demand for flagship stores or shops was relatively small. The monitoring data found that the residential areas were growing against the market, while the Wang District stores continued to lose money, and then the strategy of attacking the residential areas was launched flexibly.

After ten years of gold trend reversal, Ren said that when the company visited the newspaper, the company was not solely dependent on tourists, but also a source of tourists from local and Southeast Asian countries.

When the market value of clothing retail sales declined in double figures, the sales of the same store in July to August 10th increased by 12%.

She believes that Giordano customers are widespread and brand popular, and sales data show that the growth of the residential area is ideal. Instead, Wang District store has started to reorganize the store network because of the "2 to 3 rent increase from the owners' request, which has changed our money from money making".

Giordano pferred from the Wang District to the re injecting residential area. It has made a special offer to the residential areas. It will discount the key products such as socks and shorts from Friday to Sunday. "Many times the guests will not buy only one pair of socks, they will buy other products". The key products are like the sales engine (volume driver) to drive the overall sales volume.

She pointed out that although the key products had made a slight drop in "ASP (Average Selling Price, that is, average selling price), the sales volume has double digit increase in the past few months".

As for the strategy of opening a new branch, she stressed that Giordano regards rent as a proportion of income as an important assessment standard, and is also measured by one branch store.

If the rent is too high, it will not be renewed if the rent is changed. The Causeway Bay branch is also changed from "3 to 1" and is constantly negotiating with the owners to achieve a win-win situation. However, some of them are still losing money and there is no sign of improvement.