Overview Of Global Fashion Brand Performance In 2018

In the international fashion luxury brand planning, the Chinese market already has an irreplaceable position.

According to the "2018 Global Luxury Market Research Report" released by Bain consulting, Chinese consumers are promoting global economic growth. They contribute nearly 33% of the global luxury consumption. Bain expects that the consumption of luxury goods outside China and in China will be flat by 2025, which means that the brand should focus on the development of the Chinese mainland market.

Recently, the world's major luxury goods and fashion brands have announced the latest performance. Among them, the growth of China's market is frequently mentioned by major enterprises.

Beauty makeup

From the perspective of sales and profitability, high-end beauty is still growing strongly.

In 2018, sales of L'OREAL group reached 26 billion 900 million euros, up 3.5% over the same period last year. In the earnings report, this is the biggest increase since 2007. The group's four major brands, Lanc me (Lancome), Yves Saint Laurent (Saint Laurent), Giorgio Armani (Giorgio Armani) and Kiehl 's (coryn), all achieved two digit growth, and Lancome's annual sales exceeded 3 billion euros.

LVMH, a luxury group, set a new record last year, both in terms of revenue and profits. Among them, the perfume and cosmetics sector revenue increased by 14% to 6 billion 92 million euros.

In addition, with the promotion of high-end brand business, Japanese Shiseido group's annual sales volume reached 1 trillion and 90 billion yen, an increase of 8.9% over the same period, and its net profit was 61 billion 400 million yen, up 169.9% from the same period last year.

Coty group, which bought more than 40 brands of P & G at a glance, looks indigestion. In the fourth quarter of last year, the group's sales fell quite a lot.

With outbound travel becoming more and more popular, tourism retail channel has become the main growth point of the international beauty group. In addition, the demand for Asian market is strong, and Chinese buyers make a contribution that can not be ignored for the growth of performance. In order to cater to the preferences of Chinese young consumers, the major cosmetic brands have invested heavily in the development of e-commerce channels and spanformed into digital products.

Luxury goods and international products

In 2018, sales and profits of LVMH group hit a new record. Sales amounted to about 46 billion 800 million euros, up 10% over the same period last year. Sales in Asia (excluding Japan) accounted for 29% of the group's total sales and the fastest growth.

In 2018, Kai Yun group's annual sales volume was 13 billion 665 million euros, up 26.3% over the same period last year, while the Asian region (except Japan) increased by 34%, slightly lower than that of the North American market. Gucci, the most luxurious brand of its brand, broke through 8 billion euros for the first time last year, and became a strong competitor for LV.

Hermes Hermes achieved sales of 5 billion 966 million euro last year, an increase of 7.5% over the same period last year. Sales growth in the Asia Pacific region (except Japan) is mainly driven by countries such as China and South Asia. In October 2018, Hermes launched a new digital platform in China and Europe.

In 2018, Prada group's sales volume was 3 billion 142 million euros, up 3% over the same period last year, reversing the decline of group sales in 2017.

Capri and Tapestry have been buying high-end brands in recent years, trying to build upscale brand image and product line to compete for the pricing power of fashion products. However, the multi brand strategy has not achieved the desired effect, and the performance is still declining.

In the third quarter ended December 29, 2018, the Capri group's revenue was $1 billion 440 million, almost unchanged from the same period in 2017. In the third quarter, core brand MichaelKors sales fell 4% to $1 billion 276 million over the same period. Sales of Jimmy Choo surged 49.9% to 162 million dollars.

In the second quarter ended December 29, 2018, Tapestry group's sales volume was $1 billion 800 million, almost unchanged from the same period last year. Sales of core brand Coach increased by 2% to $1 billion 250 million, while same store sales increased by 1%. Sales of StuartWeitzman had risen 3% to 124 million dollars.

Tiffany and Pandora are two different brands of fashion jewelry.

According to Tiffany's fourth quarter and 2018 financial year performance report, in the three months ended January 31, 2019, the company's global net sales fell 1% to 1 billion 320 million US dollars compared with the same period last year, and net income rose to 205 million US dollars from 61 million 900 thousand US dollars a year ago. In the 2018 fiscal year, Tiffany global net sales rose 7% to $4 billion 440 million, up 4% from the same period last year. Benefiting from a lower effective income tax rate, the net income of the company rose from $370 million in fiscal year 2017 to $586 million.

According to Pandora's Pandora2018 fiscal year fourth quarter and full year earnings data, in the three months ended December 31st, Pandora's sales fell 7% to 7 billion 890 million dkrona in the same period of last year, and the total income of the whole year fell 4% to 22 billion 800 million DK, or about 3 billion 484 million US dollars, which meant that Pandora had stopped double digit growth in 4 years and recorded a decline in sales. EBITDA's profit rate was 32.5%, and net profit dropped to 12.5% 5 billion 40 million.

Fast fashion

According to the earnings and market performance, most of the fast fashion brands are in the "performance bottleneck".

In the 2018 fiscal year of November 30th last year, the H&M group sold a total of 210 billion 400 million Swedish kronor (including VAT), an increase of 5% according to the Swedish kronor and an increase of 3% in local currency. According to the earnings report, H&M group's total sales in fiscal year 2017 amounted to SEK 231 billion 771 million (including VAT) and increased by 3% in local currency. Therefore, in the past year, H&M group's sales growth is not entirely optimistic. However, the group's online channels are growing significantly. Earnings showed that group online revenue grew by 22%, accounting for 14.5% of the group's total sales.

In 2018, sales of Inditex group rose by 3% to 26 billion 100 million euros, while net profit rose 12% to 3 billion 400 million euros compared with the same period last year. During the reporting period, all brands in the group and all regions in the world grew, and online retail performance recorded a significant increase of 27%.

In the fourth quarter ended February 3rd, Gap Group sales fell 7% to 4 billion 600 million US dollars, down from analysts' estimated $4 billion 700 million, gross margin was 35.6%, net profit rose 15% to 276 million US dollars over the same period last year. Among them, OldNavy sales were flat compared with the same period last year, Banana Republic declined by 1%, and Gap brand fell by 5%.

In contrast, UNIQLO's parent company has a better life. In the three months ended November 30, 2018, sales of XXX group increased 4.45% to 644 billion 466 million yen compared with the same period last year, and gross profit increased 2.44% to 324 billion 800 million yen compared with the same period last year, while net profit decreased 6.45% to 73 billion 476 million yen compared with the same period last year.

Sports and leisure

In the three months ended February 28th, Nike's global revenue grew 7% to $9 billion 610 million over the same period, which is basically consistent with analysts' expectations. This is the first time Nike has not exceeded its expected revenue for the first 6 quarters. The Greater China market is still Nike's fastest growing region in the world, with sales growth of 19% to 1 billion 590 million dollars during the period, excluding the exchange rate effect, which has increased by 24%. In the first two quarters of fiscal year 2019, the revenue growth in Greater China was 20% and 26% respectively.

In the 2018 fiscal year, Adidas's revenue grew 8% to 21 billion 900 million euros, and net profit increased 20% to 1 billion 700 million euros. North America and the Asia Pacific region gained 15% sales growth, of which China grew by 23% throughout the year. Adidas global CEO Rothd said, "this is the best year in the company's history."

In the fourth quarter ended December 31st, Puma sales surged 17.9% to 1 billion 220 million euros, gross profit margin was 47.1%, net profit soared 624.7% to 15 million 700 thousand euros. In 2018, Puma sales rose 12.4% to 4 billion 600 million euros compared with the same period last year, while net profit rose 38% to 187 million euros, with sales of footwear business breaking 2 billion euros for the first time. From the fourth quarter of the data, the regional market, the Asia Pacific region with a 39% sales growth rate far ahead.

In 2018, Under Armour sales increased to $5 billion 193 million, up 4.1% from the same period last year, slightly higher than 3.1% in 2017, but net profit losses.

In 2018, Skechers sales increased to $4 billion 642 million, an increase of 12.5% over the same period, which is 9.2% higher than that in the same store. By the end of 2018, Skechers had 2998 stores in the world.

In 2018, Asics sales fell 3.4% to 387 billion yen, and operating profit dropped 46.3% to 10 billion 500 million yen. According to the financial report, the decline in performance was mainly affected by the downturn in the US market and sales in the United States fell by 15%.

In December 2017 -2018 November, sales of Levi's amounted to US $5 billion 575 million, up 14% compared to the same period last year, rising 13% at a constant exchange rate. Sales in Asia amounted to US $887 million, up 8% over the same period last year.

In the three months ended December 29th, VF Group sales increased by 8% to $2 billion 900 million, gross profit margin was 52.2%, net profit was $463 million 500 thousand, and net loss was 90 million 300 thousand US dollars in the same period last year. The core brand Vans is still the main driving force for growth. During the period, the brand sales increased by 25% over the same period, while the sales of TheNorth Face increased by 16%. The income of the denim Cowboy brand Lee and Wrangler continued to decline, with a year-on-year decline of 2% and 9% respectively.