The Second Quarter Profit Growth Of French Luxury Goods Group Hermes Is Strong

Italy luxury group Giorgio Armani announced last week that its group revenue fell for the first time in 10 years to 2 billion 510 million euros in 2016.

The Group recorded an increase of 4.5% in 2015, compared with an increase of 16% in 2014.

Group net profit also declined from 241 million euros in 2015 to 211 million euros.

Armani group plans to rebrand its brand this year in response to the "continuous market change".

At the beginning of this year, Armani group announced the termination of the two sub brands of Armani Collezioni and Armani Jeans Jeans, and only retained the high-end Giorgio Armani, mid-range Emporio Armani and the lowest priced A|X Armani Exchange brand.

LVMH group

Group revenue and continuing business profits gained two digit growth

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In the first half of June 30th, LVMH Group sales rose 14.6% to 19 billion 714 million euros, and net profit rose 24% to 3 billion 640 million euros, the fastest growth since 2011.

Thanks to the strong performance of China's regional performance, the LVMH group's sales growth in Asia Pacific region, except Japan, was the most significant, increasing by 29%.

In terms of product categories, the largest sector of the group, the turnover of fashion and leather goods, increased by 17% to 6 billion 899 million euros, thanks to the two key cooperation projects of LV: the joint series with the artist Jeff Koons and the New York skateboard brand Supreme.

In addition, C, line, Kenzo, Loewe and Fendi also showed strong brand performance.

The Asia Pacific region is brilliant, and Gucci accounts for over half of the luxury business.

Gucci 2017 autumn winter advertising blockbuster

Kai Yun group's net profit reached 825 million 800 thousand euros in the first half, a significant increase of 78%, and sales volume of 7 billion 300 million euros, an increase of 28%.

Among them, sales in the Asia Pacific region increased by 34.4% to 2 billion 42 million euros, showing the most significant growth.

Luxury business is the leading sector of the group, an increase of 28.3% to 5 billion 30 million euros.

Gucci brand alone has accounted for more than half of the group's luxury business. Sales in the first half rose 43.4% to 2 billion 832 million euros, surpassing Hermes's 2 billion 700 million euros for the first time in the scale of revenue.

Yves Saint Laurent also recorded a "strong growth", with sales increased by 28.5 to 163 million 500 thousand euros.

Puma dominated sports and lifestyle sectors increased by 14.3%, and the first half of the year exceeded 2 billion euros.

Hermes group

Two quarter growth slowed, the largest increase in clothing and accessories.

Thanks to the strong purchasing power of Chinese consumers, the French luxury group's second quarter profit growth was strong, but its sales growth slowed markedly in the first quarter.

In the three months ended June 30th, Hermes Group sales increased by 8.3% to 1 billion 360 million euros compared with the previous year, while sales growth in the first quarter was 11.2%, while sales in the first half increased 9.7% to 2 billion 700 million euros.

Although Hermes did not announce the specific profit in the second quarter and the first half of fiscal year, the group said its profit growth in the second quarter has reached 33.9%, the highest level in last year's quarter.

In the second quarter, Hermes's clothing and fashion accessories grew fastest, with an increase of 12.7% to 296 million euros, and sales of handbags and harnesses increased 9.7% to 708 million euros, or 5 billion 500 million yuan.

Max Mara group

The rally is significant, and the family business is pulling down the positive effect.

Max Mara Fashion Group, a well-known luxury fashion brand in Italy, released its financial data in 2016. Its annual sales volume reached 14.3 billion euros, an increase of 3.6% over the same period last year. Net profit reached 109 million euros, an increase of 29.8% over the same period last year, Max Mara.

However, the owner of Max Mara: the financial company Max Mara Finance of the Maramotti family has a turnover of about 305 million euros in 2016, although it increased by 6% over the previous year, but the net profit was only 37 million euros, down by 56.5% compared with the same period last year.

In addition, the Maramotti family controlled Max Mara International and International Fashion Trading, the two international trading companies also suffered varying degrees of profit decline, weakening their joy in the fashion business.

Aeffe group

Net profit soared 214%, and continued international expansion.

Thanks to the positive performance of all the brands and the gradual recovery of the retail sector (especially in Europe), the net profit of Aeffe parent of Moschino parent company increased by 214% to 4 million 600 thousand euros in the 6 months ended June 30, 2017, compared with 1 million 500 thousand euros in the same period last year.

Sales grew by 8.8% to 150 million euros, up from 138 million euros a year earlier.

This year, the goal of Aeffe is to confirm the growth trend of sales, and continue to enhance the brand's advantages and quality, and enhance the brand's international status.

Aeffe plans to open 10 authorized outlets in Asia (mainly in China) by the end of this year.

Benetton

Sales fell 8%, and net losses doubled over the previous year.

Benetton's advertisement in 1990s

Benetton, the latest group financial data released by Benetton in 2016, reduced sales from 1 billion 529 million US dollars in 2015 to 1 billion 380 million euros. The losses of the group in 2016 almost doubled from 2015 to 81 million euros from 46 million euros.

Group officials said there was no obvious signs of recovery in the first few months of 2017. The group's 2017 performance will basically continue the downward trend of sales in 2016, and the change of products can only have a limited impact on 2017's performance.

VF group

Net profit in the second quarter soared 115%, and half year sales were unchanged from last year.

Vans's parent company recently released its core financial data for the second quarter of fiscal 2017. In the three months ended June 30th, VF group's sales grew 1.7% to $2 billion 360 million over the same period last year, while net profit soared 115% to 109 million dollars, which was higher than analysts' expectations.

The Chinese market performed well and sales increased by 13% over the same period last year.

Sales of outdoor sports departments, including departments such as Timberland, Wrangler and The North Face, increased by 4% to $1 billion 460 million by sector, while sales of cowboy departments with Lee brands fell by 5% to 600 million dollars. Sales of sports apparel, including Vans, were reduced by 1% to 114 million US dollars, while sales in other sectors decreased by 2% to 28 million 320 thousand dollars.

In the first half of the year, group sales were almost unchanged from last year, recording 4 billion 940 million US dollars.

Adidas group

Stripping off non core businesses, sales surged 19% in the two quarter.

Adidas has recently sold golf brand TaylorMade, Adams Golf, Ashworth and hockey brand CCM Hockey.

Continuous business (including Adidas and Reebok two brands) sales increased by 19% to 5 billion euros over the same period.

The net profit of continuous business increased by 16% to 3.47 billion, up from 301 million euros a year ago.

The group has raised its 2017 annual forecast: the growth of the continuous sales volume from the previous 12~14% to 17~19%, the annual sales volume is expected to exceed 200 billion euros, and the continuous business net profit has been raised to 13.6~13.9 billion euros from the previous 12~12.25 billion euros, and the growth rate has been pferred from the previous 13~15% to 26~28%.

In addition, Adidas will announce the second quarter's complete financial report in August 3rd.

Levi's group

Women's clothing business entered the $1 billion club and recorded strong growth for eighth consecutive quarters.

Levi's group owns jeans brand Levi's, leisure brand Dockers, low-end brand Signature by Levi Strauss Co. and Denizen based on wholesale channel.

In the second quarter ended May 28th, sales of Levi 's Strauss group increased 5.6% to 1 billion 70 million US dollars, gross profit margin reached 52.3%, net profit dropped 43% to 175 million US dollars.

The sales volume of women's wear business has increased for eighth consecutive quarters, an increase of 24%. It has become one of the growth engines of group performance, with annual sales exceeding 1 billion US dollars.

Its sales in the US market registered an increase of 2% to $607 million, while sales in Asia also recorded a growth of 2% to $185 million, while sales in Europe were the most significant, up 17% to 280 million US dollars over the same period.

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