LVMH Is Helpless For American Fashion Brands.

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The group's fourth quarter and 2016 full year earnings data show that LVMH group's total revenue in 2016 exceeded 37 billion euros, and its profit exceeded 70 billion euros.

Among them, Louis Weedon, Fendi, C and line fashion.

The total sales volume increased by 8.2% from 2015 to 37.8 billion euros.

According to the regional division, LVMH group's Louis Weedon's operating income in the United States has been growing against the trend. Its brands have contributed 27% of the LVMH group's revenue in the United States.

However, it is noteworthy that, however, the LVMH group's high growth in the United States has offset the weakness of its US fashion brands, and the group's only fashion brand, Marc Jacobs, is worried.

Reporter Marc Bain in social media revealed that LVMH Group Chairman and CEO Bernard Arnault in the 2016 annual performance investor conference call and even directly said, "compared to Trump, I am more worried about Marc Jacobs."

Bernard Arnault increased the shareholding of Marc Jacobs International LLC to 80% in 2013.

According to public information, LVMH group's acquisition of Marc Jacobs and DKNY performance continued to shrink, as of the first half of last year, still losing money.

LVMH group finally admitted its failure. Last July, it agreed to sell DKNY parent company DKI to G-III group at a price of 650 million US dollars.

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In the declining retail environment, DKNY has been in an awkward position in recent years. Although the LVMH group has never released the financial situation of its subsidiaries alone, luxury market analysts predict that the annual sales of DKNY will be about 450 million dollars, while that of the G-III group is 1.4 times that of the brand annual sales, while that of the LVMH group in 2001 is 1.9 times that of the brand annual sales. Obviously, this is a failure case for LVMH group.

"DKNY is a large fashion brand in the United States, but all efforts made by LVMH group to improve the brand value are not effective."

An American insider from the LVMH group has said.

LVMH group does not sell its brands regularly. The last time the group sold its fashion brand Christian Lacroix was in 2005. The group's sale of DKNY also reflects the current situation of the luxury retail market downturn. The market environment is difficult, and giving up the loss business is second only to the best choice to reverse the business.

According to the world clothing and shoe net, luxury luxury brands that are among high-end luxury brands and popular brands are known as the Savior of the weak market in the American fashion retail market, such as Michael Kors, Tory Burch and Furla.

Luca Solca, an authoritative luxury industry analyst, points out that the retail market environment is more suitable for the development of light luxury brands with moderate price and high cost performance. But in fact, LVMH group's pformation of DKNY to light luxury brand is not successful. The founder of Donna Karan complained to reporters that the LVMH group did not give her any practical support.

The US media pointed out that the LVMH group failed to fully understand the operation of the American fashion brand, and the biggest problem now is Marc Jacobs.

Jean-Jacques Guiony, chief financial officer of LVMH group, acknowledged that Marc Jacobs had been operating very hard in response to the deadlock news of Marc Jacobs in July last year.

According to the world clothing and shoe net, Marc Jacobs is facing more complicated problems than DKNY.

LVMH, the legendary luxury group, has not yet found a way out for Marc Jacobs.

In 2013, designer Marc Jacobs left Louis Weedon to devote herself to her brand. At that time, she had heard of the brand plan for IPO, but now there is little chance.

According to the world clothing and shoe net, Marc Jacobs business development has been in a low ebb. Earlier, the company decided to close the modern style Marc by Marc Jacobs to the main brand Marc Jacobs, but its performance has not been improved since then.

In July 2015, Marc Jacobs officially closed its brand store in Palais Royal, Paris.

The store has been in operation for nine years. The analysis shows that the designer brand is facing a crisis. The turmoil also includes frequent adjustment of personnel in Marc Jacobs. The brand is open to public relations, marketing, activity organization and other departments will have new moves.

Marc Jacobs himself said earlier that his two brands, "Marc Jacobs" and "Marc by Marc Jacobs", had suffered some bad effects due to his negligence. Whether it was accessories, bags or shoes design, there was an urgent need to restructure and improve visibility.

He hopes to change this situation and build a flagship store that covers all his own brands to facilitate customers' overall consumption.

Over the past six months, the luxury industry has seen a trend of warmer growth (extended reading).

But Bernard Arnault is not optimistic about the future. He said: "every ten years, there will be eight years of good life and two bad days. Seeing that the ten year cycle will be bottomed out.

The economic downturn may create opportunities for acquisitions and expansion of market share, but we believe that the second half of this year will be particularly difficult. "

Citigroup analyst Thomas Chauvet said earlier that the sale of DKNY was the first time that LVMH group had cut its fashion brand assets in ten years. This means that the group will continue to sell its brands that are not performing well and lose money, and Marc Jacobs is likely to be the next.

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