The Business of Fashion: LVMH Moët Hennessy Louis Vuitton Announces Record 2016 Results

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €37.6 billion in 2016, an increase of 5% over the previous year. Organic revenue growth was 6%.lvmh-moet-hennessy-louis-vuitton

In the fourth quarter, revenue increased by 9% compared to the same period of 2015. Organic growth was 8%. The American market remains on a good track as does Europe. Asia, excluding Japan, continued its good momentum.

Profit from recurring operations reached €7 billion in 2016, an increase of 6%, to which all business groups, apart from selective distribution, contributed. This result compares to 2015 which was itself a year of growth. Operating margin reached 18.7%. Group share of net profit was €3 981 million, representing growth of 11%.

Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability. Continued innovation, entrepreneurial spirit and the quest for excellence: all Maisons continue to assert these core values while maintaining rigorous execution of their strategies on the ground. In an environment which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products.

Key highlights from 2016 include:

  • Record revenue and profit from recurring operations
  • Growth in the United States, Europe and Asia
  • Good performance of Wines & Spirits in all regions
  • The success of both iconic and new products at Louis Vuitton, where profitability remains at an exceptional level
  • Progress at Fendi
  • The sale of Donna Karan and the acquisition of Rimowa, a leader in luggage of excellence
  • Good momentum at Parfums Christian Dior driven by successful product innovations
  • Market share gains at Bvlgari and TAG Heuer
  • Growth at Sephora which strengthened its position in all its markets and in digital
  • Free cash flow of €3 974 million, an increase of 8%
  • Gearing of 12% at end of December 2016

WINES & SPIRITS: GOOD YEAR WITH PROGRESS IN THE UNITED STATES AND REBOUND IN SHIPMENTS TO CHINA

The Wines & Spirits Business Group recorded an increase in organic revenue of 7 %. On a reported basis, revenue growth was 5 %. Profit from recurring operations increased by 10 %. With volumes up 3%, solid growth continues for champagne and prestige cuvees performed particularly well. Hennessy cognac enjoyed an excellent year with 10% volume growth. The American market is growing well and China saw better momentum after a tough 2015 due to destocking by distributors. Other spirits, Glenmorangie and Belvedere, continued their growth.

LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Belvedere, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao Yun.

FASHION & LEATHER GOODS: GOOD PERFORMANCE OF LOUIS VUITTON, OTHER BRANDS STRENGTHENED THEIR POSITIONS

The Fashion & Leather Goods Business Group recorded organic revenue growth of 4% in 2016. On a reported basis, revenue growth was 3 %. Profit from recurring operations increased by 10%. Louis Vuitton had a good year driven by the level of creativity across all its businesses. The continued success of its iconic product range and the strong demand for recent creations such as the new luggage designed by Marc Newson and the Louis Vuitton fragrances, all contributed to this growth. Fendi recorded robust growth crossing the symbolic revenue threshold of 1 billion euros during the year. Loro Piana continued to expand its distribution network and opened a flagship store in Paris. Céline, Loewe and Kenzo all continued to grow. Marc Jacobs continued to work on changes to its collection. Donna Karan was sold in December to the American G-III group. Rimowa, world leader in luggage of excellence, joined the LVMH group.

Its Fashion and Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood, Loro Piana and Rimowa.

PERFUMES & COSMETICS: CONTINUED SUCCESS OF INNOVATIONS; EXCELLENT PERFORMANCE IN MAKEUP

The Perfumes & Cosmetics Business Group recorded organic revenue growth of 8%. On a reported basis, revenue growth was 6%. Profit from recurring operations increased by 5%. The inauguration of the new atelier for the creation of fragrances, Les Fontaines Parfumées, at Grasse was a highlight of the year. Parfums Christian Dior grew market share in all regions, driven by the worldwide success of Sauvage and the vitality of its iconic perfumes J’adore and Miss Dior. The progress of makeup also contributed to the Maison’s excellent performance. Guerlain benefitted from the successful launch of its new makeup collection inspired by its fragrance La Petite Robe Noire. Benefit experienced strong growth driven by the success of its new collection for eyebrows. Make Up For Ever, Fresh and Kat Von D performed well.

LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh).

WATCHES & JEWELRY: MARKET SHARE GAINS FOR BVLGARI AND TAG HEUER

The Watches & Jewelry Business Group recorded organic revenue growth of 5%. On a reported basis, revenue growth was 5%. Profit from recurring operations increased by 6%. Bvlgari continued to gain market share with enhancements to its Serpenti, Diva and B.zero1 lines. Growth continued in China, Korea and in the Middle East. TAG Heuer grew despite a difficult market for watches, gained market share and benefitted from the success of its new collections and its connected watch. Hublot accelerated its development in Asia and recorded the best year in its history. Chaumet continued to move its product lines upmarket and inaugurated a new boutique concept in Hong Kong.

LVMH‘s Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, a joint venture created with the world’s leading diamond group.

SELECTIVE RETAILING: GOOD PERFORMANCE AT SEPHORA, DFS IMPACTED BY A DIFFICULT TOURISM CONTEXT IN ASIA

The Selective Retailing Business Group recorded organic revenue growth of 8%. On a reported basis, revenue growth was 7%. Profit from recurring operations declined by 2%. Sephora gained market share across all regions and once again recorded double-digit growth in both revenue and profits. More than a hundred stores were opened in 2016 including notably a flagship store in the World Trade Center in New York and major renovations in Boston and Singapore. Its online offer accelerated with the launch in six new countries. DFS continued to face a difficult environment, notably in Hong Kong. The expansion into new destinations continued. The opening of the T Galleria in Angkor in Cambodia and one in Venice, Italy were the highlights of the year.

LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Royal Van Lent and Cheval Blanc hotels.

Key figures:

             
Euro millions    

2015

 

2016

 

% change

Revenue    

35 664

 

37 600

 

+ 5 %

Profit from recurring operations    

6 605

 

7 026

 

+ 6 %

Group share of net profit    

3 573

 

3 981

 

+ 11 %

Free cash flow*    

3 679

 

3 974

 

+ 8 %

Net financial debt    

4 235

 

3 265

 

– 23 %

Total equity    

25 799

 

27 903

 

+ 8 %

* Before available for sale financial assets and investments, transactions relating to equity and financing activities Continue reading

A New Step Forward: Cole Haan Launches Studiøgrand Lifestyle Collection

Cole Haan Raises The Bar For Work, Working Out, And Every Adventure In Between

Cole Haan has announced the launch of StudiøGrand: a most versatile women’s lifestyle collection which features understated, minimalist silhouettes made for women who make the most of every step, from studio to street and beyond.

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Cole Haan STUDIØGRAND – Sara Mearns (Principle Dancer at the New York City Ballet)

The Cole Haan StudiøGrand Collection draws inspiration from kindred spirits and pioneers of movement, like Principal Dancer Sara Mearns of the New York City Ballet whose poised athleticism and street-to-studio schedule demanded a shoe that merges substance with style. Other visionaries that have joined the campaign include Coco Rocha – Model, Owner & Director of NoMad Management, and 27-year-old CEO and Co-Founder of groundbreaking Y7 Studio, Sarah Larson Levey.

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Cole Haan STUDIØGRAND – Coco Rocha (Model, Owner & Director of NoMad Management)

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Cole Haan STUDIØGRAND – Pack & Go Trainer in Marine Blue, Duffle and prAna Yoga Mat

StudiøGrand was born out of a need for style and substance in and out of the studio. We have collaborated with extraordinary women, like Sara Mearns, who demand more out of their feet than anyone, to create a collection for the multi-faceted woman constantly moving between the various studios of her life,” says David Maddocks, Chief Marketing Officer and General Manager of Business Development at Cole Haan.

The StudiøGrand Collection includes an array of functional accessories designed for the active woman, including footwear, outerwear, bags, sunglasses, an umbrella and a yoga mat.

The footwear collection highlights the StudiøGrand Pack & Go Trainer with lightweight GRAND.ØS Energy Foam. In addition, the collection also includes a feminine floral embossed StudiøGrand Sneaker, StudiøGrand Packable Ballet Flat, accompanied with a zipper shoe bag for pack-and-play ease, and a breathable StudiøGrand Knit Trainer. Continue reading

Sarah Jessica Parker to Debut First Standalone SJP by Sarah Jessica Parker Boutique at MGM National Harbor

Sarah Jessica Parker will debut her first standalone boutique at the MGM National Harbor with the resort’s opening on December 8, 2016. SJP by Sarah Jessica Parker will feature the designer’s chic collection of shoes, handbags, accessories and the SJP LBD little black dress line. The boutique will be open daily from 10 a.m. – 11 p.m. beginning December 9 and can be reached at 301-971-6094.

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Sarah Jessica Parker to Debut First Standalone SJP by Sarah Jessica Parker Boutique at MGM National Harbor. (PRNewsFoto/MGM National Harbor)

An array of colorful shoes, handbags and accessories synonymous with the brand await at SJP by Sarah Jessica Parker. Also available will be the American-made SJP LBD, the brand’s latest collection of little black dresses. Accessories and handbags range from $30 to $695, shoes start at $240 and the SJP LBD collection will premiere at $395.

SJP was founded in February 2014 by Sarah Jessica Parker and partner George Malkemus III. The accessories collection stems from Sarah Jessica’s love for the single sole and vivid memories of New York City fashion in the latter part of the 70s. The collection showcases the brand’s theme of colors acting as neutrals and encourages women to take risks and break away from fashion rules they imagine.

Opening a standalone store has long been a dream we have been working towards and we feel truly privileged to be doing so with the expertise, guidance and support of our brilliant partners at MGM Resorts,” said Parker. “It’s been very exciting to have been involved in all steps of the process, from on-site construction visits to the actual layout and design of our boutique. I’m honored to be included in this massive undertaking and I’m very much looking forward to celebrating in December. Because perhaps then I will believe it’s real.

Bill Boasberg, general manager of MGM National Harbor, said “When curating our retail collection, we first and foremost wanted to align ourselves with a luxury brand that represents style, elegance and, most of all, fun. We know this boutique will appeal to a wide variety of women and we’re looking forward to inviting them in to discover their new favorite shoe, handbag or little black dress.

The newest addition to the MGM Resorts International portfolio, MGM National Harbor‘s unrivaled setting offers stunning panoramic views of the eastern shore of the Potomac River in Maryland. The $1.4 billion resort sits a short distance from Washington, D.C. to the north and historic sites, including George Washington‘s Mount Vernon estate across the river in Virginia.

In addition to a shopping spree, MGM National Harbor guests are invited to enjoy the resort’s stunning amenities whether just for the day or as a weekend getaway. From restaurants created by the nation’s most celebrated chefs to a luxury suite collection and destination spa, the resort has a variety of offerings to entice even the most discerning of guests. Resort amenities include:

  • 308 rooms, including 74 premier suites
  • Restaurants from world-renowned chefs Marcus Samuelsson, José Andrés and the Voltaggio Brothers, in addition to many other exciting culinary concepts
  • The Spa and Salon at MGM National Harbor
  • A 125,000-square-foot casino offering slots, table games and poker
  • Two nightlife venues with unrivaled cocktail programs
  • The MGM National Harbor Heritage Collection featuring artwork inspired by the Capital Region’s rich heritage

The 24-story resort will feature premier amenities and experiences for locals as well as visitors from around the world including a dynamic casino with over 125,000 square feet of space that includes slots, table games and poker; a world-class spa and salon; an entertainment theater with flexible seating for up to 3,000; high-end branded retail; 50,000 square feet of meeting space; and restaurants from renowned local, national and international chefs. MGM National Harbor is scheduled to open December 8, 2016.

Coach Announces Opening of ‘Coach House’ Flagship Store on Fifth Avenue in New York City

Stuart Weitzman Opens Separate Flagship at Same Location

Coach, Inc. announced the opening of its newest flagship in one of the world’s most prestigious shopping districts at 685 Fifth Avenue in New York City. Timed to coincide with the brand’s 75th Anniversary Year, this unique retail concept marks a defining moment in both the company’s history and brand transformation.coach-logo

Coach, Inc. is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941, and has a rich heritage of pairing exceptional leathers and materials with innovative design.

The 20,000 square foot retail space dedicated to the Coach brand, designed by Executive Creative Director Stuart Vevers in partnership with William Sofield, Designer and President of Studio Sofield, showcases the brand’s distinctive modern luxury positioning. Specifically, the interior features an impressive blackened steel and concrete staircase, which creates a sense of discovery while shopping, as well as a glass enclosed, vintage inspired elevator. Throughout the three-level flagship is a mix of eclectic and bespoke furniture and objects, accented by custom-designed cabinetry, warm lighting, proprietary carpets and fine millwork. Additional architectural elements include a glass-block facade, expansive windows and a captivating mechanized conveyor belt installed with a rotation of Coach products.

The center atrium houses a 12-foot sculpture of Coach’s dinosaur, Rexy, designed by renowned artist Billie Achilleos, and constructed entirely from Coach bags and proprietary hardware. In addition, a monumental contemporary sculpture, Scribing the Void, created by Brooklyn artist Kurt Steger traces the surface of iconic rock formations in Central Park, and is a nod to Coach’s New York City roots.

Victor Luis, Chief Executive Officer of Coach, Inc. said, “With Coach House, we are celebrating our New York heritage and 75-year history of craftsmanship. The flagship features the full expression of our women’s and men’s collections including bags, small leather goods, footwear, and ready-to-wear, in addition to offering a full range of customization and leather services. Together with the opening of the adjacent Stuart Weitzman flagship store, we are bringing two global brands born in New York City to one iconic location.”

The company is also launching two concepts unique to Coach House flagships that speak to the brand’s heritage of leather craftsmanship and innovative design. First, the Made to Order Rogue, which allows customers to create a bespoke Rogue bag, selecting from nine points of customization and over one million possible combinations. Second, the Coach House Workshop – which is the first of its kind – offering expanded leather and craftsmanship services, including special monogramming and exclusive vintage product, featuring a resident master craftsman with nearly 30 years of experience in the New York Workshop at Coach’s headquarters.

Andre Cohen, President North America and Global Marketing, added, “We are thrilled to open a true home for the Coach brand on the corner of Fifth Avenue and 54th Street, an address globally recognized for fashion. We’re confident that our modern luxury store environment will be warmly embraced by discerning New York shoppers and international visitors alike.

Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries and through its website at www.stuartweitzman.com.

Bugaboo Opens First Ever U.S. Pop-Up Store In New York City

Dutch Mobility Company Encourages Consumers to Rediscover the Pleasure of Travel through An Unique In-Store ExperienceBugaboo Logo

Bugaboo, a global mobility company whose products enable people to explore and move freely through their world, announced today the opening of the company’s first U.S. pop-up store in New York City. Bugaboo recently shook up the travel industry with the announcement of its most recent mobility concept creation, the Bugaboo Boxer, inspired by the company’s existing and iconic strollers. Both will be available for hands-on testing at the store, providing a space for guests to experience the “power of push.”

Best known for revolutionizing the stroller market with the launch of their iconic stroller in 1999, Bugaboo designs products that make life on the road easier.

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Bugaboo Boxer Luggage System 

The pop-up store will showcase the brand’s recently launched luggage system, the aforementioned Bugaboo Boxer, as well as its signature stroller line. The Bugaboo pop-up store is located at 224 Mulberry Street, New York, NY. The store will be open seven days a week from 11 a.m. to 8 p.m. Monday through Saturday; and 12 p.m. to 6 p.m. on Sundays.

bugaboo-boxer-luggage-system

BUGABOO EXTENDS MOBILITY EXPERTISE WITH LAUNCH OF BUGABOO BOXER LUGGAGE SYSTEM

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BUGABOO EXTENDS MOBILITY EXPERTISE WITH LAUNCH OF BUGABOO BOXER LUGGAGE SYSTEM (HERE WITH CABIN CASE LAPTOP BAG)

Bugaboo’s pop-up store simulates a traveler’s journey with the Bugaboo Boxer from packing at home, to airport security, all the way to the airplane aisle. Upon walking into the SoHo location, guests are welcomed into their “home” where the shopping experience and packing with the Bugaboo Boxer are explained through a live demo. The next stop on the journey takes place in a staged airport security entrance where the ease of moving with the Bugaboo Boxer is showcased. Finally, guests will be transported to the aisle of an airplane to get a firsthand feel for the effortlessness of stowing away the lightweight Cabin Case. Continue reading

Kipling Launches Holiday 2016 Collection

Kipling USA’s 2016 Holiday Collection reveals an ongoing evolution through refreshed aesthetic.

Kipling North America, a division of VF Sportswear, Inc., is excited to announce the launch of its Holiday Collection this October.

Kipling USA celebrates feminine festivity this holiday season, introducing a new approach to the creative direction and elevated designs. Armed with a 360° Holiday campaign and fashion influencer Olivia Culpo as the face of it, the brand dives into the refreshed vision of Nina Flood – newly named President of Kipling North America in June. In tandem with this new leadership, the 2016 Holiday collection will mark Christine Lee‘s second season with the brand as its Head Designer, North America. Lee brings with her years of experience and a pioneering vision for the brand’s aesthetic. Continuing to experiment with fabrics and treatments, Kipling’s 2016 Holiday Collection promises luxe textures, brilliant hues, and famed functionality.

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Kipling USA’s 2016 Holiday Collection reveals an ongoing evolution through refreshed aesthetic.

Founded in 1987 in Belgium, Kipling crafts lightweight handbags, luggage and accessories with a playful approach. Through innovative and contemporary designs, Kipling combines quality, function and style, creating the ideal accessory for an active lifestyle. Kipling established itself as a global brand by pioneering the use of its trademark crinkle nylon in expressive colors and patterns.

Inspired by the seasons festivity, the 2016 Holiday Collectioncelebrates femininity, adding luxe touches to everyday functional styles“, Lee, explains. At the forefront of the collection sits a plethora of styles in metallic treated nylon. Ranging in shades of champagne and platinum to rose gold, the metallic bags and accessories mimic the brand’s classic features in function, and exude holiday festivity. Complimentary to the metallic, the collection will debut two new styles, the Paola backpack and Frieda cropped-cross-body. Plush to the touch, velvet styles feature golden hardware and sateen straps, offered in midnight black, emerald green and dusty rose pink.

The campaign images feature Culpo Making Spirits Bright by attending festive parties, wrapping presents and interacting with the brand’s newest collection. Culpo will also be highlighted in the brand’s 360° campaign through filmed moments of her holiday season happenings as she shares festive outfit ideas and DIY tips.

Kipling set its sights on Olivia Culpo, the former Miss Universe, as the face of the brand this season, who with her infectious energy has made a name for herself in the world of fashion and entertainment. An up-and-coming fashion influencer in her own right, she has created a substantial platform in both the modeling and fashion/media industry. Guest-hosting for E! Entertainment and gracing the cover of fashion magazines are among her recent successes.

North America President, Nina Flood comments, “We are thrilled to welcome Olivia to the Kipling family. Her endearing, genuine personality is further complimented by a style that is both playful and sophisticated, aligning with the spirit of our brand.

The Kipling Holiday 2016 Collection will offer a complete range of styles available November 2nd on Kipling-USA.com, Kipling retail stores, and select department stores nationwide.

Kipling has headquarters in New York, N.Y. and Antwerp, Belgium, is distributed in more than 80 countries and is available in more than 5,000 stores globally. Kipling has 10 full-price retail locations in the US and is sold in Macy’s department stores and specialty stores nationwide. www.kipling-usa.com

The North Face Launches First-Ever Urban Exploration Concept Shop in the U.S.

1024px-the_north_face_logo-svgFifty years after its first store opening in the North Beach neighborhood, apparel, equipment and footwear leader The North Face has opened a concept shop in San Francisco aimed at the city explorer. The discreet storefront in the Jackson Square neighborhood is the first of its kind in the U.S., and will focus exclusively on the label’s premium streetwear range. A similar space will be featured within The North Face New York Flagship store opening on 5th Avenue later this month.

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The North Face Urban Exploration Concept Shop, 701 Sansome St. San Francisco, CA

The North Face (a division of VF Outdoor, Inc.) was founded in 1966 with the goal of preparing outdoor athletes for the rigors of their next adventure. Today it is the world’s leading outdoor brand, creating athlete-tested, expedition-proven products that help people explore and test the limits of human potential, even if they are no further inland than their favorite Starbucks downtown. The company, through its philanthropic arm, also protect our outdoor playgrounds and minimize their impact on the planet through programs that encourage sustainability.

The North Face 701 Sansome St San Francisco CA

The North Face Urban Exploration Concept Shop | 701 Sansome St. San Francisco, CA (PRNewsFoto/The North Face)

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The North Face Urban Exploration Concept Shop | 701 Sansome St. San Francisco, CA (PRNewsFoto/The North Face)

The North Face 701 Sansome St San Francisco

The North Face Urban Exploration Concept Shop | 701 Sansome St. San Francisco (PRNewsFoto/The North Face)

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The North Face Urban Exploration Concept Shop, 701 Sansome St. San Francisco, CA

Open for a limited time only, The North Face Urban Exploration Concept Shop (Jackson Square, 701 Sansome Street, San Francisco, CA 94111, 415-434-4196, www.thenorthface.com) will be devoted to protective gear suitable for the modern urbanite. New product will be regularly dropped in-store in the coming months, including collaborations, and curated pieces from the brand’s Japanese and Hong Kong collections.

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The North Face Urban Exploration Concept Shop will feature exclusive and limited edition product like the Original Daypacks and Soft Duffels reissue. ’68 Daypack ($225 USD)

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The North Face Urban Exploration Concept Shop will feature exclusive and limited edition product like the Original Daypacks and Soft Duffels reissue. ’78 Duffel – Large ($300), ’68 Daypack, ’78 Duffel – Small ($250)

The shop will feature exclusive and limited edition product like the Original Daypacks and Soft Duffels reissue. In honor of the company’s 50-year tradition of making handcrafted outdoor gear, The North Face revived some of the first-ever packs sewn and sold at the company’s original location. Continue reading