The World's Key Fashion And Luxury Brand's Latest Transcript Comes Out.

　　 Since July -8, the major international fashion brands have released the latest quarterly or half year results. From the overall perspective, the Chinese market has already been the main driving force for the growth of international brand performance. International cosmetics and luxury goods are growing strongly. However, Coach (demand area: 150-300 square meters, 82 shopping centers, 5 plans this year), Michael Kors (demand area: 500-1000 square meters, 83 shopping centers, 30 planned plans this year), Jimmy Choo, Tod s and other brands are facing some pressure.

Previously, global management consulting firm McKinsey released "China luxury report 2019". It is estimated that by 2025, the total consumption of luxury goods in China is expected to increase to 1 trillion and 200 billion yuan, contributing 65% to the growth of global luxury consumption.

In the luxury consumption group, the proportion of "80 generation" and "90 generation" gradually increased. Data show that in 2018, "post-80" and "post-90s" accounted for 43% and 28% of the total number of luxury goods buyers, respectively, contributing 56% and 23% of the total consumption of luxury goods in China.

International beauty makeup

LVMH perfume and beauty department: a record high

In the first half of the year, sales increased by 12% to 3 billion 236 million euros, an organic growth of 9%, a record high, mainly benefiting from the growth of its flagship brand. Operating profit grew 6% to 387 million euros over the same period. The sector has seen significant growth in the Asian market, especially in China. In the future, LVMH group will strengthen creative innovation in perfume and beauty department to cope with rapidly changing and competitive environment.

L'OREAL group: sales increased 7.3% year-on-year

In the first half of the year, the group achieved sales of 14 billion 810 million euros, an increase of 7.3% over the same period (excluding exchange rate and other effects, an increase of 10.6% over the same period last year). The 7.3% increase is L'OREAL's strong year-on-year growth in the past ten years. The Asia Pacific region, represented by China, has sales of 4 billion 618 million euros, an increase of 24.3% over the same period last year.

Shiseido: China's market is the main driving force.

As of the first half of June 30th, the group's sales volume was 564 billion 650 million yen, calculated by local currency, an increase of 7.5% over the same period last year, an increase of 6% over the yen. Operating profit decreased by 3% to 69 billion yen compared with the same period last year. The Chinese market is still the main driving force for Shiseido group's performance growth. During the period, the Chinese market recorded a total of 107 billion 700 million yen (about 71.5 yuan), an increase of 20.5% over the same period.

Emory Pacific: net profit plunged 30.6% in the first half

During the period, group sales fell 0.2% to 3 trillion and 200 billion won (about 18 billion 600 million yuan), operating profit fell 29.7% to 315 billion 300 million won (about 1 billion 832 million yuan), net profit fell 30.6% to 237 billion 900 million won (about 1 billion 382 million yuan). In the cosmetic sector, the problem that the amore Pacific has been overly committed to marketing, but with little success, has led to a sharp decline in net profit.

Luxury & international products

LVMH group: strong growth in fashion leather sector

The group's sales rose 15% to 25 billion 100 million euros, gross profit margin 66%, operating profit increased 14% to 5 billion 295 million euros, and net profit increased 9% to 3 billion 268 million euros. As of June 30th, the total number of shops was 4699.

Fashion leather Department: sales rose 21% to 10 billion 425 million euros, and has recorded double-digit growth for 11 consecutive quarters.

Watch and jewelry department: Sales of 2 billion 135 million euros, an increase of 8% over the same period last year.

Kai Yun group: Gucci slowdown

In the first half of June 30th, total sales of Gucci parent group opened up 18.8% to 7 billion 638 million euros, a marked slowdown compared with 26.8% in the same period last year.

Gucci: sales increased by 18.6% to 4 billion 617 million euros, up 16.3% from the same month, and operating profit increased 26.7% to 1 billion 876 million euros.

Yves Saint Laurent: sales increased by 20.4% to 973 million euros compared to the same period, sales increased by 16.6% year-on-year, and operating profit increased 24.3% to 252 million euros compared with the same period.

Bottega Veneta: sales fell 0.6% to 549 million euros, down 3.8% from the same month, and operating profit fell 24.3% to 104 million euros.

Summit group: strong demand in mainland China

As of the first quarter of June 30, 2019, group sales increased by 12% to 3 billion 740 million euros, up 9% from the same month, unchanged from the fixed exchange rate. Excluding online retail channels, sales grew 6% over the same period last year, a 9% increase from the same exchange rate.

With the promotion of the policy of reducing tariffs and value-added tax, the mainland of China has performed particularly well.

Sub sector: Sales of jewelry sector increased by 10% to 1 billion 827 million euros, an increase of 7% from the fixed exchange rate, and sales of watch Department increased by 1% to 823 million euros compared with the same period.

Prada group: Miu Miu sales decline year on year

In the first half of June 30, 2019, Prada Group recorded 1 billion 570 million euros in sales, up 2% from the current exchange rate, down from 3% in the same period last year. Thanks to the tax agreement signed with the Italy government, Prada group's net profit rose 155 million under the preferential tax policy, which rose by 46.6%.

Core brand Prada: sales in the first half of the year amounted to 1 billion 284 million euros, up 4% over the same period last year.

Miu Miu: sales in the first half of the year were 221 million euros, down 6% compared to the same period last year.

In the specific category, the clothing series still contributes to the group's main sales volume, but as the contemporary luxury brand revenue support department shoes and bags sales have declined to varying degrees.

Burberry: the Chinese market is indispensable.

In the three months ended June 29, 2019, the group's retail revenue was 498 million, an increase of 4% from the book exchange rate and an increase of 2% according to the fixed exchange rate. Among them, the overall sales growth in the Asia Pacific region is slightly lower than 10%, but sales in mainland China have increased by about 15%.

In the sub regional perspective, sales in the UK market were the most robust. Sales in the EMEIA region (Europe, the Middle East, India and Africa) benefited from an increase in tourism consumption and a low single digit growth. The income in the North American market was weak, with no growth compared with the same period last year. Overall sales growth in the Asia Pacific region is slightly below 10%, but sales in mainland China have increased by about 15%.

Salvatore Ferragamo: sales increased by 4.6% over the same period last year.

In the first half of June 30th, Ferragamo sales increased by 4.6% to 705 million euros, up 6.2% from 6.2% in the same period last year, while net profit rose 2.4% to 60 million euros.

Sales of footwear sales at the core of the group grew 4.1% to 297 million euros, sales of handbags and leather accessories increased 6.9% to 281 million euros, and perfume sales increased 7.8% to 41 million 700 thousand euros.

By region, China's Asia Pacific region, apart from Japan, has become a Salvatore Ferragamo high income market. Sales increased by 8.1% to 277 million 200 thousand euros, while sales in EMEA region increased 3% to 177 million 600 thousand euros, and sales in North America increased 0.4% to 152 million 800 thousand euros.

In the second half of the fiscal year, digital investment will be increased and local marketing investment in major markets such as China will be strengthened.

Hermes: return to strong track

In the three months ended June 30th, its sales rose 14.7% to 1 billion 674 million euros, an improvement over 3% in the same period last year, and sales rose 15.1% to 3 billion 284 million euros in the first half, exceeding analysts' expectations.

Leather goods and harness Department: sales amounted to 1 billion 652 million euros, up 16% over the same period last year.

Clothing and accessories Department: Sales of 755 million euros, an increase of 18.4% over the same period;

Silk and accessories Department: sales amounted to 267 million euros, up 6.9% over the same period last year.

Perfume Department: sales amounted to 159 million euros, up 3.6% over the same period last year.

The report shows that the sales growth of Hermes is the strongest in Asian markets other than Japan, which rose 20.7% to 643 million euros, up 21.1% to 1 billion 299 million euros in the first half of the year, mainly benefiting from double-digit growth in mainland China. During the period, Hermes has opened new stores in Shanghai International financial center.

Moncler: China's market growth is leading the world.

As of the first half of June 30th this year, the group achieved revenues of 570 million 200 thousand euros, an increase of 16% over the previous year (13% at the constant exchange rate), adjusted interest rate depreciation and amortization profit (EBITDA) of 143 million 600 thousand euros, an increase of 16% over the previous year, higher than that of the previous 139 million euros.

According to the regional perspective, Italy's revenue increased by 8% over the same period last year, reaching 68 million 400 thousand euros, accounting for 12% of total revenue. It is noteworthy that Asia's regional growth is relatively large. In the first half of this year, its revenue was 249 million euros, an increase of 18% over the same period last year, accounting for 43.7% of total revenue. China's market demand is relatively strong, leading to the global growth rate, has become the brand's largest market.

TOD 'S: brand aging 6 million euro loss in the first half year

In the first half of the fiscal year, Tod 's Group sales fell 4.7% to 454 million 600 thousand euros, a net loss of 6 million euros, the first time the group has recorded a loss in the past 5 years.

Tod 's sales plunged 9.7% to 231 million euros, and Roger Vivier sales increased 11.6% to 101 million euros compared with the same period last year, the group's only record growth performance, Hogan sales fell 4.5% to 105 million euros, and Fay brand sales fell 12.8% to 21 million 500 thousand euros.

Tiffany & Co (Tiffany): performance is not as good as expected.

In the first quarter of April 30, 2019, Tiffany net sales fell 3% to about 1 billion US dollars, down from the average analyst estimate of 1 billion 20 million US dollars. The net sales were basically flat with the same period last year, while the same store sales decreased by 5% compared with the same period last year. Compared with the same rate, the net sales decreased by 2% compared with the same period last year, down by 1.16% compared with the analyst's forecast. Net profit fell 12% to 125 million 200 thousand dollars, and the earnings per share were 1.03 dollars, compared with 142 million 300 thousand dollars and 1.14 dollars in the same period last year.

Sub regional perspective: the net sales in the Americas market decreased by 4% to US $406 million compared with the same period last year; the net sales in the Asia Pacific region decreased by 1% to US $324 million compared with the same period last year; the net sales in Japan decreased by 4% to 145 million US dollars compared with the same period last year; the net sales in the European market decreased 4% to 102 million dollars compared with the same period last year;

Sales amounted to US $26 million, an increase of 17% over the same period last year.

Tapestry: sales grew 2.7% year on year.

In the three months ended March 30th, group sales increased by 1% to $1 billion 330 million over the same period, and net profit fell 16% to $117 million over the same period, but higher than analysts' expectations. In the first 9 months ended March 30th, the group's sales grew by 2.66% to $4 billion 513 million, while net profit surged 167% to $494 million over the same period.

Coach brand sales were strong, up 1% to 965 million US dollars compared to the same period last year; Kate Spade increased 4% to 281 million US dollars compared with the same period last year; Stuart Weitzman increased 2% to 85 million US dollars compared with the same period last year.

Capri group: sales decline of MK and Jimmy Choo

Net sales increased by 11.9% to $1 billion 346 million in the first quarter of June 29th, slightly below the average analyst estimate of $1 billion 370 million.

Michael Kors: net sales amounted to US $981 million, operating profit was US $201 million and operating profit margin was 20.5%.

Jimmy Choo: net sales amounted to US $158 million, operating profit was US $11 million and operating profit margin was 7%.

Versace: net sales amounted to US $207 million, operating loss was US $3 million and operating loss rate was 1.4%.

Hugo Boss: double sales growth in mainland China

In the first half of this year, HUGO BOSS sales increased by 3% to 1 billion 339 million euros, and pre tax profit fell 9% to 130 million euros. In the second quarter of fiscal year 2019, sales in the Asia Pacific region increased by 8% over the same period last year. Hugo Boss has reopened eight stores in the quarter, and opened three new concept stores in Tokyo, Singapore and Moscow.

In the first half of the year, the sales volume of its Boss brand was 1 billion 158 million euros, an increase of 2% compared with the same period last year. The sales of Hugo brand reached 181 million euros, up 5% over the same period last year.

Sports & Leisure

Adidas: Greater China performance increased by 14%

In the first half of 2019, Adidas's business revenue increased by 4% to 11 billion 392 million euros, which was in line with the 3% to 4% growth target proposed at the beginning of the year.

Adidas's brand revenue increased by 5%, and Reebok brand revenue decreased by 2%.

In the three months ended June 30th, the Greater China region remained strong, excluding exchange rate factors, and the second quarter sales achieved double-digit growth of 14% over the same period last year.

Nike: revenue rose 7%

2019 fiscal year (June 2018 -2019 May) revenue was $39 billion 117 million, an increase of 7% over the previous year, and fourth quarter revenue of $10 billion 184 million, up 4% over the same period last year. Gross profit margin was 44.7% in the year, net income increased to US $4 billion, net interest rate was 10.22%, and diluted earnings per share were US $2.49.

Nike brand sales increased by 8% in fiscal year 2019 to $37 billion 218 million.

Converse brand sales in fiscal 2019 amounted to US $1 billion 906 million, up 1% over the same period last year.

The Asian market performed well with double-digit sales growth.

Under Armour: the second quarter narrowed to $17 million 300 thousand.

The US sports apparel brand Under Armour sales in the three months of June 30th were US $1 billion 190 million, almost no growth compared with 1 billion 170 million US dollars in the same period last year, but net losses narrowed to US $17 million 300 thousand, a net loss of 95 million 500 thousand US dollars in the same period last year.

PUMA: half yearly sales break 2 billion 500 million euros

In the first half of this year, group sales reached 2 billion 546 million euros, an increase of 16.8% over the same period last year. Net profit rose to 144 million euros, much higher than 99 million euros in the same period last year. The Chinese market has maintained a high growth rate and is expected to shoulder the position of the United States in the global market in the next five years.

Lululemon: sales rose sharply by 20%

In the three months ended May 5th, brand sales rose 20% to $782 million, up 22% from the fixed exchange rate. Brand CEO said that Lululemon has maintained a strong growth trend, and sales volume is expected to reach 8.25-8.35 billion in the next 3 months.

VF group: sales grew 6% year on year.

As of the second quarter of June 29th, group sales increased by 6% to $2 billion 300 million.

Vans global market sales grew by 20% over the same period, up 23% at a constant exchange rate; The North Face grew by 9% in the global market and 12% in the constant exchange rate; Dickies global market sales grew 1% over the same period, and 2% at a constant exchange rate. In contrast, Timberland's performance was poor, the global market fell 1% compared to the same period last year, and the growth rate was 2% under the constant exchange rate.

Skechers: inter market sales increased by 25%

Global sales in the second quarter amounted to US $1 billion 259 million, an increase of 10.9% over the same period last year, mainly due to 19.8% growth in international business and 1.5% growth in domestic business. By sector, international wholesale business grew by 18.2%, and its global direct consumer business grew by 14.4%, while domestic wholesale business fell by 3.8%.

Fast fashion

XXX group: sales grew 7% year-on-year

In the first three quarters of fiscal year 2019 (from September 1, 2018 to May 31, 2019), the total sales revenue of fast selling amounted to 18228 billion yen (equivalent to RMB 115 billion 708 million yuan), an increase of 7% over the same period last year, and 247 billion 600 million yen in revenue, an increase of 3.7% over the same period last year. China's mainland market gained more than 20% profit.

Uniqlo sales of 1 trillion and 521 billion 578 million yen, up 7% over the same period; GU sales grew 11.2% to 185 billion 300 million yen.

H&M group: achievements in place

In the three months ended May 31st, H&M's after tax profits fell 1.5% to 4 billion 570 million kronor about $490 million, while sales rose 11% to 57 billion 770 million krona. According to statistics, H&M sales increased by 12% at fixed interest rates in June. H&M said that the decline in profits was mainly due to excessive promotional activities, increased discount efforts and the implementation of the transformation strategy, which will increase sales of full price products in the future.

INDITEX: strong momentum of digital transformation

In the three months ended April 30th, Inditex's first quarter sales grew 5% to 5 billion 930 million euros, compared with 2% in the same period last year. The integration of offline stores and online platform business has strong momentum of digital transformation, and achieving sustainability will be the key pillar of Inditex strategy. The group's store strategy in 2019 will be dominated by online, or poor entity stores.