The Global Luxury Industry Is Coming Out In 2015. Let'S See How They Are Doing.

Luxury /LVMH

LVMH, the world's largest luxury goods group, announced its annual performance in 2015. Its revenue increased by 16% to 35 billion 700 million euros per annualized year. Its recurrent business profits increased by 16% to 6 billion 605 million euros annually.

LVMH's four quarter sales rose 5% to 10 billion 400 million euros beyond expectations. The downward trend in the reverse industry, due to strong performance in Europe, Japan and the United States, offset the weakness of the Chinese market.

As a star brand of LVMH group, LV occupies about half of the group's operating profit. LV's performance in the Asia Pacific region, including the Chinese market, has deteriorated and its turnover has declined significantly.

In the fourth quarter, although no specific data were disclosed in the Chinese market, LV remained weak in the Chinese market.

Earlier, the Financial Times reported that in view of the deterioration of China's luxury market, 20% of China's LV stores will be closed before the middle of this year. At that rate, an average store will be closed every month.

Luxury / Hermes International

Hermes international led by CEO Axel Dumas increased revenue by 18% in 2015, and recorded 4 billion 840 million euros, especially in Japan. Its turnover increased by 18%, which is quite different from that of Asia, which is only 5%.

Operating profit increased by 19% to 1 billion 540 million euros, exceeding analysts' expectations of 1 billion 520 million euros.

Group profit margin expanded to 31.8%.

However, due to international economic, geopolitical and monetary uncertainties, Hermes international expects 2016 turnover growth to be below the medium-term target of 8%.

Hermes is still the fastest growing company in the luxury industry, and now has about 325 shops around the world.

Luxury /Christian Dior

French fashion brand Christian Dior ranks as the club with annual sales of 2 billion dollars.

The strong performance of Christian Dior is in sharp contrast to the loss of luxury brands such as Burberry, Prada and LV. According to relevant earnings data, the main income of these luxury brands comes from consumers in China and China, but the growth of revenue is slowing down. In recent years, the growth of Christian Dior is far ahead of these luxury brands.

According to Christian Dior's 2015 earnings report, the total revenue of the company last year was 1 billion 870 million euros, or about US $2 billion 80 million, and the turnover grew by 17.1% over the same period, and the growth rate was 7% based on the average exchange rate.

Among them, the company's annual operating profit increased by 20.6% to 240 million euros, or about 266 million 300 thousand US dollars.

In the first half of December 31, 2015, the company said its leather goods, garments, jewelry and accessories were dynamic and effective.

Among them, retail revenue increased by 15% in real terms during the 6 month period and increased by 6% at a constant exchange rate.

Meanwhile, operating profit increased by 12.5% to 135 million euros, or about 149 million US dollars.

Luxury / Kai Yun group

France

In 2015, sales of luxury goods group increased by 16% to 2 billion 210 million euros, while sales of sports and lifestyle division rose 15.5% to 916 million euros.

The group's total annual sales amounted to 11 billion 580 million euros, up 15.4% compared with 2014, and operating profit fell 1% to 1 billion 640 million euros.

Group's brand Gucci organic sales revenue has accounted for 1/3 of the group's total sales, the fourth quarter revenue growth, up 4.8%.

Since 2015, Gucci has made progress both from visual creativity and branded goods, and has also been re loved by consumers after entering the market.

Gucci's latest marketing campaign has changed radically, and it is more focused on digital marketing.

Luxury / peak group

The Swiss luxury group has published its third quarter earnings report, which has fallen by 3% in the third quarter due to the cooling of European tourism and the decline in demand for watches in the Asia Pacific region.

By the end of December 31st, the total revenue of the third quarter of the group was 2 billion 930 million euros, excluding exchange rate effect, and total revenue fell 4% year-on-year.

As the parent company of Cartier, Baume &Mercier, Dunhill and Lancel, the group has mainly benefited from surging sales of brand self owned stores and jewellery products to offset the sluggish watch sales.

In March, CEO Bernard Fornas, a joint group, resigned. The company said it would streamline its structure and lay off 350 people.

A spokesman for the group said: "the sluggish sales environment will last until the fourth quarter, and business profits will also be weakened by higher store rents."

The group will publish its annual results announcement in May 20th.

Luxury /Prada

Thanks to the increase in currency exchange rate and store sales, Italy luxury group Prada announced its 2015 earnings report showing that the group's sales were flat compared with 2014 sales.

However, this also means that the growth of Prada group in 2015 has stagnated compared with other luxury goods giants.

In the first 12 months ending January 31st, the group's total sales volume was 3 billion 540 million euros, which was basically flat compared with the total sales volume of 3 billion 550 million yuan in 2014.

Among them, group retail sales increased by 2.5% to 3 billion 50 million euros, as the group focused on sales of its own stores, resulting in wholesale business revenue fell 16.6% to 444 million euros.

Sales in Europe and Japan have increased, while the weakness in the Chinese market has weakened sales in the Asia Pacific region.

As of January 31st this year, Prada group has 618 direct outlets worldwide. Since its listing, the group has lost more than half its market value, and its market capitalization is about HK $65 billion.

Luxury /Burberry group

Burberry group released its third quarter earnings yesterday, showing that the group's revenue was lower than expected in the quarter, but 1% of potential sales growth.

In the first three months ended December 31st, the group's total sales volume was 603 million pounds. Burberry group CEO Christopher Bailey pointed out that the luxury industry is becoming more and more difficult.

In early March, the Burberry flagship store in Zhejiang Wenzhou Fortune Plaza was closed.

At present, the brand official has not yet confirmed and announced the reasons for closing the store.

The Burberry group said sales in these districts dropped by more than 20% in the third quarter, due to a sharp drop in passenger traffic in Macao, Hongkong.

In early March, there were media reports that Burberry or malicious takeovers, mysterious investors gradually increased holdings of Burberry shares, has been close to 5% of the red line.

This event heralds a potential takeover, pushing Burberry shares to a five month high.

Luxury /Hugo Boss

By the end of December 31st, the company's fourth quarter pre tax profit (EBITDA) rose by 2% to 171 million euros, less than the company's 3 to 5% target.

According to the disclosure, based on the constant exchange rate, sales increased by 5%, thanks to the increase in tourist arrivals, sales in Europe increased by 10%.

US regional sales fell 1%, and the US market has been weakening since the third quarter.

Sales in China were the most dismal and sales fell more than double digits.

After the release of the earnings report, the group announced that it had left the group CEO Claus-Dietrich Lahrs for 8 years.

Due to weak sales in China and the United States, the group issued a profit warning, the stock price plunged 20.2% in February 23rd, and the group's market value evaporated 26.2%.

Hugo Boss decided to slow down the expansion of its retail network, and the group decided to close 20 stores in China.

The company expects sales growth to slow down in 2016 and operating profit to decline.

Luxury /Salvatore Ferragamo

Italy

Net profit and sales growth in the Salvatore Ferragamo 2015 fiscal year were recorded, but sales in the Asia Pacific region fell by 3.2%, due to the weak performance in Hongkong and Macao and the complex environment in the mainland of China.

For the future retail development strategy of Salvatore Ferragamo, the group will focus on tourism retail business and plan to open 5-6 sales outlets at the airport.

For the whole year, group net profit increased by 6.7% to 174 million 500 thousand euros, mainly driven by strong sales of leather goods and the performance of European stability, even though operating costs increased over last year.

The total revenue increased by 7.4% to 1 billion 430 million euros.

At fixed exchange rates, sales increased by 1.4%.

As far as Asia is concerned, Hongkong's performance is still negative due to the decrease of tourists from mainland China, and Macao is also suffering from difficulties.

But at the same time, Japan and South Korea attract more mainland Chinese shoppers.

Luxury /Tod's group

According to the 2015 earnings report released by Italy luxury group Tod's, the group's net profit fell from 97 million 100 thousand euros last year to 92 million 700 thousand euros, due to higher operating and financial costs.

With regard to the expansion of the retail network this year, the group will consider reducing the number of shops and closing some stores, especially the particularly negative Hongkong region.

Driven by global growth in retail and wholesale channels and accelerated growth in the fourth quarter, Tod's group's total revenue rose 7.4% to 1 billion 40 million euros.

Sales rose by 1.8% under the fixed exchange rate.

Chief financial officer Emilio Macellari revealed that Tod's group is taking a more prudent approach to expand its retail network and plans to open 15 to 20 new stores this year.

But because the group is considering closing some stores, it may lead to less total stores.

In contrast, the group opened 25 new stores in 2015.

Luxury /Brunello Cucinelli

Italy luxury brand Brunello Cucinelli announced its revenue report in 2015, benefiting from its retail and wholesale business growth. Brunello Cucinelli2015 earned 414 million euros in revenue, up 16.3% from 356 million euros in 2014, and sales rose 9.5% on a constant exchange rate basis.

By December 31, 2015, Brunello Cucinelli has accounted for 82.9% of total sales outside Italy in the past 12 months, up 19.4% over the same period in 2014.

Italy's domestic sales accounted for 17.1% of total sales, up 3.7% to 71 million euros compared to the same period in 2014.

Globally, sales of Brunello Cucinello rose 30% to 193 million euros in retail channels, accounting for 46.6% of total sales, up 5.4% from the same period last year.

Last year, there were 81 stores in Brunello Cucinello and 10 new stores.

There are 12 stores in mainland China, and there are 6 stores in Hong Kong, Macao and Taiwan.

Luxury /Valentino group

Italy's luxury brand Valentino 2015 sales broke through the $1 billion mark, two years ahead of schedule to achieve the desired target.

According to the financial data, Valentino sales increased to $1 billion 90 million last year, up 48% compared with $88 million 40 thousand in 2014, and the company expects 2016 sales to continue double-digit growth.

Valentino CEO Stefano Sassi revealed that in 2012, when Valentino was Mayhoola holding, it had set a five year plan with sales volume of US $1 billion, and after two years of unremitting efforts, we completed two years ahead of schedule.

Over $one billion in sales represents the critical quality of the company reaching a new height and previous brands, and also shows that the company's profitability has been greatly improved.

According to the news of Reuters, Valentino is planning a IPO project, possibly in Milan.

Thanks to the recession in the Greater China region and the stagnation of European market growth, Italy's Giorgio Armani SpA recorded only 3.7% revenue growth in 2015, a growth rate slowing sharply from 16% in 2014. The Armani growth rate in the region was much slower than that in 2014.

In 2015, Giorgio Armani group earned a total of 2 billion 640 million euros.

Italy fashion consultancy Pambianco Strategie di Imprese announced last year that Giorgio Armani ranked first in three consecutive years in the 50 fashion and luxury industries listed on the market.

Following Stella McCartney and Hugo Boss's commitment to no longer use fur products, Italy fashion brand Giorgio Armani also joined the anti fur ranks.

The brand announced in its statement that since the 2016 autumn winter series, all Giorgio Armani clothing series will no longer use animal fur.