Under The Influence Of The Increasingly Cold Asian Luxury Market, Kai Yun Group Has Launched A Share Repurchase Program.

Kai Yun group launched a share repurchase program, which may be the counterattack of Kai Yun group on the recent "Chinese luxury market becoming colder" argument.

According to Fashionunited news, French luxury goods group Kering (Kai Yun) recently announced that it has signed a share repurchase agreement with the investment service provider, and will repurchase the shares of the company within four months from October 29, 2018.

The agreement also points out that Kai Yun group can buy up to 631 thousand shares of shares, accounting for 0.5% of the group's external equity.

At the same time, Kai Yun group also said in a statement that according to the decision of the tenth meeting of shareholders' meeting in April 26, 2018, the total repurchase amount of the paction will not exceed 300 million euros, and the price per share will not exceed 480 euros.

But this is only the first step.

Kai Yun group also disclosed in October 29th that the company's current plan is to buy up to 1% of the stock in the next 12 months.

This also means

It is possible to reabsorb some of the proprietary rights previously allocated to public and private investors.

In the vast majority of cases, the listed company can retain the stock as part of the stock repurchase after completion of the stock repurchase, do not participate in the calculation and distribution of the benefit per share, and will use it as a bargaining chip for employee benefits or cash realization in the future.

Not long ago, the stock of European luxury goods groups in China's stock market has seen a relatively large concussion. In addition to the 3.7% decline in the French luxury group's LVMH share and the decline in Burberry's share price by 4.3%, the French Open Group's share price also dropped to 435.7 euros, compared with 5.8% in July.

The main reason for the concussion is that the luxury industry analysts are against China.

Recent performance concerns.

This worry is not without reason.

Although Chinese consumers account for 32% of the total sales of luxury goods in the world, about 1/3 of them come from overseas markets.

In recent months, the number of luxury goods purchased by Chinese tourists has decreased significantly due to changes in customs policies in China.

Although there are figures in the third quarter of Kai Yun group that the revenue of Kai Yun has increased by 35% during the quarter, and the demand for luxury goods among Chinese consumers is still strong, it can not immediately stop the tense atmosphere in China's luxury market.

This also explains why Kai Yun group wants to buy shares in the company at this time.

Luca Solca, director of luxury banking in Paris, France, has said, "due to recent worries about consumer confidence in China, Kai Yun group has been relatively strongly affected by the overall downward trend in the overall price of the luxury goods industry.

And just when the stock price starts to fall, some investors outside the industry will start locking in those stocks that perform better so as to reduce investment in the industry as much as possible.

Kai Yun group obviously does not want these investors to take advantage of it.

This phenomenon is not uncommon. Earlier this year, Burberry also announced that the group is implementing a stock buyback plan worth 150 million.

Earlier, the German sports brand Adidas also said that as a supplement to the group dividend policy, the group will buy 18 million 800 thousand shares before May 11, 2021, with a total value of 30 billion, accounting for nearly 9% of its total stock.

Compared to other luxury goods groups, open cloud is

I am very confident.

The group's chief financial officer, Jean-Marc Duplaix, said in the third quarter earnings conference call, "in terms of consumption capacity, China is still in good condition, especially in September and October, in all our activities in China, we have achieved very good results.

The development potential is still very stable. "