Fourth Quarter Dior Fashion Sector Revenue Fell 2.9%

According to the latest news from French media, Christian Dior is also struggling with the decline in the number of tourists. Luxury goods Cards. The company reported operating profit fell 30.2% to 74 million euros in the first six months of 2016.

As of June 30th, the company's fourth quarter, Dior Latest fashion Sector revenue fell 2.9% to 464 million euros, compared with the 1% decline in the third quarter. The decline in operating revenue in the quarter was further expanded. In fact, the performance of the Dior fashion department was also inferior to that of its parent company LVMH group, while the LVMH group's revenue grew 3% in the first half of the year. Leatherwear Product segment sales fell 1%.

Dior CEO Sidney Toledano told the US women's Wear Daily that "the brand is seriously affected by the decrease in tourist flow. Although the growth trend has been seen in various local markets around the world, this is obviously not enough to compensate for the negative impact of the decline of Paris tourists."

At the beginning of this year, Serge Brunschwig, the new president of Dior Homme, also said that the brand did not have a positive start this year, mainly because of the successive terrorist attacks in Europe. Brussels terrorist attacks and Paris terrorist attacks made it difficult to assess the negative impact of these two incidents. This is a problem that the global luxury retailers need to face.

According to data released by Global Blue in June, global tourism consumption dropped by 13%, and Europe dropped by 16.8%. The Asia Pacific region dropped by 4.1%. In addition to Europe, the number of overseas tourists, including Japan, Hongkong and Macao, is also declining, mainly due to local currency revaluation, terrorist attacks and local political influence. Dior revealed that the market that had recorded growth in performance only included the United States, Britain and Switzerland.

Sidney Toledano points out that Dior's new flagship store, including San Francisco, Cannes and London, is mainly opened in the second half of fiscal year. London stores are popular with tourists because of the weakness of the pound and the safety market of London after the terrorist incidents in Paris, Brussels and Munich.

In the first six months of this year, based on the constant exchange rate, the Dior fashion department's turnover in the US region increased by 12%. China's local consumption also recorded growth during this period, but Sidney Toledano did not disclose the specific growth rate. He stressed that Dior will strive to expand the local market.

Before the end of this year, Dior plans to open new stores in Harbin, China, and set up boutiques in Barcelona, Spain. In late September, an independent jewelry store will also be opened opposite the flagship store in Montaigne Avenue, Paris.

For the future of brand category, Sidney Toledano believes that the achievements in men's wear and jewelry show very good results in the local market. He thinks: "if the tourist market improves, then the performance will be good."

After more than 8 months after Raf Simons left office, Dior announced earlier this month that Valentino's former joint creative director Maria Grazia Chiuri is the creative director, which will make her the first female creative director in Dior for 70 years.

Maria Grazia Chiuri will be responsible for the design of women's advanced customization, clothing and accessories series. Her first series for Dior, the 2017 spring garment series, will be released in September 30th. The high definition series for Dior will be released in January next year. Sidney Toledano stressed that this will be a long-term partnership. The brand will be reformed, which will inject more understanding of her way of life.

Some analysts said that due to the slowdown in demand for luxury goods and the collapse of European tourism after the attacks in Paris and Brussels, sales growth of Dior fashion was stagnant or even negative. Now we are looking at Maria Grazia Chiuri, aiming to expand the brand's accessories department to break the deadlock.