LVMH Announced Revenue Growth in 2017 First Quarter

LVMH Moët Hennessy Louis Vuitton, the world’s leading high-quality products group, recorded revenue of 9.9 billion Euros for the first quarter 2017, an increase of 15%. Organic revenue growth* was 13% compared to the same period of 2016, an increase attributable to all business groups. Positive growth was achieved in Asia, Europe, and the US.lvmh-logo

During the first quarter, LVMH benefited from a favorable comparison base, particularly in Europe, where activity was affected last year by the impact of the November 2015 attacks in Paris. The trend currently observed cannot reasonably be extrapolated for the full year.

The Wines & Spirits Business Group recorded organic revenue growth of 13% in the first quarter of 2017. Champagne volumes increased by 7% over the period. Europe and the US markets continued to grow. Hennessy cognac saw volumes increase significantly which could impact the availability of stocks for the rest of the year. Momentum remains positive in the United States, while demand in China confirms the trends of 2016.

The Fashion & Leather Goods Business Group achieved organic growth of 15% in the first quarter of 2017. Louis Vuitton achieved a good start to the year, driven by creative momentum in all of its businesses. The recent Autumn-Winter show in the Marly courtyard at the Louvre was very well received. Fendi continues its good performance, supported by its leather and ready-to-wear lines. Céline, Kenzo, Loewe, and Berluti showed progress. Givenchy announced the arrival of a new Artistic Director. Marc Jacobs continued its product lines changes and its restructuring. Rimowa, which recently joined the LVMH Group, will be consolidated as of the second quarter.

In Perfumes & Cosmetics, organic revenue growth was 12% in the first quarter of 2017. Parfums Christian Dior recorded good growth with the success of its make-up and the continued vitality of its perfumes J’adore and Sauvage. At Guerlain, the launch of the new women’s fragrance Mon Guerlain, embodied by Angelina Jolie, was a highlight of the quarter. Parfums Givenchy benefited from the success of its lipstick lines, which had rapid development in Asia. Kat Von D, launched exclusively in January at Sephora in France, is growing well. Maison Francis Kurkdjian is joining the LVMH Group.

The Watches & Jewelry Business Group recorded organic revenue growth of 11% in the first quarter of 2017. Bvlgari gained market share and continued to innovate with new models in its emblematic jewelry lines. TAG Heuer successfully launched its new Connected Modular 45 watch. Several innovations presented by LVMH’s watch brands at the Baselworld watch fair were given an excellent reception, including a new edition of the Autavia by TAG Heuer, the new Octo Finissimo Automatic, and Serpenti Skin watches by Bvlgari and the Defy El Primero 21 by Zenith.

In Selective Retailing, organic revenue growth was 11% in the first quarter of 2017. Sephora gained market share around the world and continues to record revenue growth. The US market is growing well, China confirmed the trend already observed at the end of 2016. Momentum at DFS in Asia improved while the T Gallerias opened in Cambodia and Italy in 2016, continued their development.

In a particularly uncertain environment, LVMH will continue to focus its efforts on developing its brands, maintain strict control over costs and target its investments on the quality, excellence, and innovation of its products and their distribution. The Group will rely on the talent and motivation of its teams, diversification of its businesses and good geographical balance of its revenue to reinforce, once again in 2017, its global leadership position in luxury goods.

During the quarter and to date, no events or changes have occurred which could significantly modify the Group’s financial structure.

In million euros

Q1 2017

Q1 2016

% change
Q1 2017 / Q1 2016

 

 

 

 

Reported

Organic*

 

Wines & Spirits

1 196

1 033

+ 16 %

+ 13 %

 

Fashion & Leather Goods

3 405

2 965

+ 15 %

+ 15 %

 

Perfumes & Cosmetics

1 395

1 213

+ 15 %

+ 12 %

 

Watches & Jewelry

879

774

+ 14 %

+ 11 %

 

Selective Retailing

3 154

2 747

+ 15 %

+ 11 %

 

Other activities and
eliminations

(145)

(112)

 

Total LVMH

9 884

8 620

+ 15 %

+ 13 %

 

* with comparable structure and constant exchange rates 

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Retail News: Nordstrom Is Nation’s Favorite Fashion Retailer, New Market Force Study Finds

Annual Retail Study Also Uncovers Top Shoe Brands, And Trends In Consumer Confidence, Wearables And E-Commerce

Nordstrom’s fan base is as fervent as ever. For the fifth time in a row, Nordstrom ranked as the nation’s favorite fashion retailer in an annual retail industry study conducted by Market Force Information (Market Force). Market Force polled over 10,000 consumers for the study, which ranks top fashion retailers, reveals retail technology trends and looks at spending plans and habits.

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Market Force Information (Market Force) logo

The survey was conducted online in December 2016 across the United States. There was an overall pool of 10,714 respondents covering all four U.S. Census regions. Within the survey pool, 7,241 reported shopping for fashion at a favorite retailer within the past 90 days, and 5,494 reported shopping for shoes within the past six months. There was a broad spectrum of income levels, with 54% indicating incomes of over $50,000 a year. Respondents’ ages ranged from 18 to over 65. Approximately 75% were women and 25% were men. For the rankings, Market Force asked participants to rate their customer satisfaction with their most recent fashion retailer experience, and their likelihood to refer the brand to others. The results were averaged to attain a Composite Loyalty Score. Only retailers with at least 100 locations were included.

Dillard’s and T.J. Maxx Climb Higher in Rankings

Nordstrom, which has built a reputation for incomparable customer service, ranked first among the retailers studied with a score of 64%, up 6% from 2016. Dillard’s made even larger strides from last year, gaining 16% percentage points to rank second with 54%, and was closely trailed by off-price retailer T.J. Maxx, which earned a 53% score. Ann Taylor and Nordstrom Rack landed in the top of the rankings, after not making the cut last year, tying with Kohl’s for fourth place. [See Graph 1].

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Graph 1 – 2017 Fashion Retailer Rankings

Nordstrom Top for Value, Dillard’s for Creating Full Looks

In the attributes that set one retailer apart from the others, Nordstrom, Ann Taylor and Dillard’s all performed exceedingly well. Overall-winner Nordstrom ranked first for value, atmosphere, and ease of finding items, while Dillard’s took the No. 1 spots for creating a look and finding correct sizes. Ann Taylor landed in the top three in all of these categories. T.J. Maxx and Ross were called out for merchandise selection, and American Eagle has the fastest checkout speeds. [See Graphs 2 and 3].

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Graph 2 – Rankings by Attributes

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Graph 3 – Rankings by Attributes

Sizing up Sales Support

Despite the fact that sales assistance is shown to boost satisfaction and sales, less than half (42%) of consumers report being helped by an associate during their last shopping trip. Lane Bryant’s and Nordstrom’s associates assisted customers most often, while Target and T.J. Maxx shoppers received the least help. [See Graph 4].graph-4-sales-associate-effectiveness-by-retailer

Sales associates are the front-line representatives for retailers, and how they engage with customers can make or break the shopping experience and impact sales,” said Cheryl Flink, chief strategy officer for Market Force Information. “The research shows that 90% of customers who were assisted by a sales associate bought something. When customers were not assisted, only 82% made a purchase. That 8% difference in conversion rate is a key reason why fashion retailers need to invest in their sales staff.” Continue reading

The Business of Fashion: Tom Ford Names Brian Blake President And Chief Operating Officer Of Tom Ford International

Tom Ford announced today the promotion of Brian Blake to President and Chief Operating Officer of TOM FORD INTERNATIONAL. He will report directly to Tom Ford, Chief Executive Officer. His appointment is effective immediately. In addition to his role as President, Blake will assume the responsibilities of Tom Mendenhall who has left his position as Executive Vice President and Chief Operating Officer to pursue other opportunities.

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Tom Ford logo (Tom Ford International)

Most recently Blake has held the position of Chief Executive Officer of Distribution and Manufacturing within the company. In his newly expanded role, Brian will oversee all business activities and operations for TOM FORD INTERNATIONAL.

Blake, a 40-year veteran of the fashion industry, has extensive experience in the luxury sector. Prior to joining TOM FORD INTERNATIONAL, Blake served as President and CEO of Gucci Worldwide, COO and Commercial Director Worldwide for Prada and Miu Miu and President and COO Worldwide for Burberry.

Tom Ford commented: “I have known and worked with Brian Blake for the past 27 years since we began our working relationship and friendship at Gucci in 1990. We have grown and developed together over that time and most recently worked closely together at TOM FORD INTERNATIONAL. Brian is a rare creature in our industry as he is highly analytical and practical yet also has tremendous people skills and is a proven leader. He has made many great contributions to TOM FORD INTERNATIONAL and I look forward to a new chapter in our growth and development with Brian at my side.”

Blake commented: “Since I joined TOM FORD INTERNATIONAL, I have had the privilege of working alongside an outstanding team of talented individuals who have significantly contributed to the growth of our company. I am honored to be part of this exceptional organization and look forward to working closely with Tom Ford as we continue to build our business and reputation as the world’s leading luxury brand.”

Tom Ford announced the creation of the TOM FORD brand in April 2005 and was joined in this venture by former Gucci Group President and Chief Executive Officer Domenico De Sole, who serves as Chairman of the company. In that same year, Ford announced his partnership with Marcolin Group to produce and distribute optical frames and sunglasses, as well as an alliance with Esteé Lauder to create the TOM FORD Beauty brand. In April 2007, his first directly owned flagship store opened in New York at ‪845 Madison Avenue and coincided with the debut of the TOM FORD Menswear and Accessory collection. In September 2010, during an intimate presentation at his Madison Avenue flagship, Ford presented his much-anticipated Womenswear collection. Presently, there are 124 freestanding TOM FORD stores and shop-in-shops in locations such as New York, Toronto, Beverly Hills, Zurich, Milan, Puerto Banus, Moscow, Osaka, Atlanta, Las Vegas, Baku, Dubai, Tokyo, Seoul, Montreal, San Francisco, Beirut, Hong Kong, Shanghai, New Delhi, Rome, London, Munich, Beijing, and Sydney.

Revlon Announces Linda Wells to Join Company as Chief Creative Officer

Revlon, Inc. announced the appointment of Linda Wells to the new role of Chief Creative Officer at Revlon. In this capacity, Ms. Wells will be responsible for overseeing the look and feel of the Company’s brands across all consumer touch points including advertising, product innovation, packaging, digital and social presence, and point of sale. Working collaboratively with the Marketing, Product Development and Research & Development teams, Ms. Wells will support the brands’ strategic growth priorities. Ms. Wells will report to Mr. Fabian Garcia, President & CEO of Revlon and will officially join the company on February 13, 2017.revlon-logo

Mr. Garcia stated, “As we continue to strengthen our portfolio of iconic brands, Linda’s extensive knowledge of the beauty industry and her experience assessing and reporting on the global beauty sector will elevate the prestige, image, and execution of our brands. She will also be integral to ensuring the glamor, sophistication, and innovativeness that are original to both Revlon and Elizabeth Arden brands’ iconic heritage.”

Ms. Wells is the Founding Editor in Chief of Allure magazine, allure.com, and the Allure video channel. During her 25-year leadership tenure, she created the Allure Best of Beauty Awards, the Best of Beauty seal, and the Allure Beauty Box subscription service. Highly respected in the industry Ms. Wells is recognized as an innovator in media and in beauty. In addition to establishing Allure as the preeminent beauty authority, she provided the highest level of journalistic coverage on important health and beauty topics for her readers.

Most recently, Ms. Wells was contributing beauty editor at large at New York Magazine’s The Cut and the producer of “The Linda Wells Report,” a beauty magazine within Hearst’s Harper’s Bazaar, Elle, Marie Claire, Cosmopolitan and Town & Country since March 2016.

Ms. Wells has a BA in English Literature from Trinity College and resides in New York City with her two sons.

CuriosityStream™ Launches Print Ad Campaign That Positions The New SVOD Service As “the Antidote To ‘Reality’ TV”

TV Commercials To Increase Brand Awareness Will Air Concurrently On Networks Including Fox News, CNN and Bloomberg

The Independently-Owned, Ad-Free SVOD Service Created By The Discovery Channel Founder Now Offers Over 1,500 Titles In History, Science, Nature, And Technology

All Titles Are Available For Instant Access By Subscribers With Annual And Monthly Subscription Plans Available for SD, HD, and 4K Streamingcuriositystream

John Hendricks, the Founder of CuriosityStream and the Founder and Former Chairman of Discovery Communications, announced today that CuriosityStream, which is currently available in 196 countries worldwide, is launching its first print ad campaign with a theme of positioning the SVOD service as “the antidote to ‘reality’ TV.curiositystream-logo-1

During the week of February 6, 2017, the print campaign will launch in the New York Times, Wall Street Journal and other major newspapers. Concurrent with the print campaign, CuriosityStream has begun to test television commercials designed to increase brand awareness. With commercials currently being tested on networks such as CNN, Fox News, and Bloomberg, the TV campaign has been created around the theme “Long Live the Curious.”

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John Hendricks

Hendricks stated, “The economic realities of ad-supported linear television have understandably driven most cable networks toward ‘reality’ TV programming which appeals to the large audiences for amusement content. As a result, the curious 25% of television viewers have witnessed a dramatic loss of choice in high-quality programs in science, history, nature, and technology. CuriosityStream is now available worldwide with a mission to satisfy the demand of audiences who are eager to learn about the mysteries of civilization, recent advances in science, fascinating breakthroughs in technology, in-depth explorations of current events, and the wonders of nature.” Continue reading

The Business of Art: Lord Harry Dalmeny Appointed Chairman Of Sotheby’s In The United Kingdom

Sotheby’s is pleased to announce the appointment of Lord Harry Dalmeny as Chairman in the United Kingdom. In this capacity, Lord Dalmeny will lead Sotheby’s client-focused activities in the United Kingdom and Ireland, continuing to develop and nurture key relationships, and drive Sotheby’s strategy. He will also be responsible for ensuring a rich and exciting trajectory for Sotheby’s long tradition of landmark house and single-owner sales – an area in which he has, for many years, played a highly significant role.sothebys-logo

Harry is one of those remarkable forces of nature that attracts everyone to it,” said Tad Smith, Sotheby’s CEO. “He is a master on the rostrum and that passion and charisma carry through everything he does. I am delighted that he has accepted this crucial leadership position in Sotheby’s founding home.”

Lord Dalmeny began his career at Sotheby’s in 1990 as a graduate trainee. Early on, he worked in the Old Master, Furniture and Silver departments, and in 1993 he joined the House Sales & Private Collection department, which he now leads. Over the course of his tenure at Sotheby’s, He has played a leading role in many of the most significant British house and single-owner sales of the last quarter century,

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Lord Harry Dalmeny appointed Chairman of Sothebys United Kingdom

including the Duke & Duchess of Windsor sale (February 1998), the Chatsworth Attic sale (October 2010), and the Castle Howard sale (July 2015).

Lord Dalmeny is one of Sotheby’s most senior auctioneers, having presided over many landmark sales. He is also an active charity auctioneer and in the past 5 years he has taken 124 charity auctions, raising £17.6 million for organizations such as The National Children’s Trust, the National Portrait Gallery, and The British Heart Foundation, among others.

Having watched Harry in action over many years, and having him seen him work his magic – both on the rostrum and at some of Sotheby’s most prestigious and exciting events – I am thrilled to see him take on the position of UK Chairman,” commented The Duke of Devonshire. “Humorous and quick-witted, his limitless energy and enthusiasm are contagious. He is one of the few auctioneers who can keep up the momentum on the rostrum for hours – days even – on end. I know that with Harry at the helm, Sotheby’s can be sure that major projects are executed with style and verve, and with characteristic attention to detail.”

Sotheby’s has been uniting collectors with world-class works of art since 1744. Sotheby’s became the first international auction house when it expanded from London to New York (1955), the first to conduct sales in Hong Kong (1973), India (1992) and France (2001), and the first international fine art auction house in China (2012). Today, Sotheby’s presents auctions in 10 different salesrooms, including New York, London, Hong Kong and Paris, and Sotheby’s BidNow program allows visitors to view all auctions live online and place bids from anywhere in the world. Sotheby’s offers collectors the resources of Sotheby’s Financial Services, the world’s only full-service art financing company, as well as the collection advisory services of its subsidiary, Art Agency, Partners. Sotheby’s presents private sale opportunities in more than 70 categories, including S|2, the gallery arm of Sotheby’s Global Fine Art Division, and two retail businesses, Sotheby’s Diamonds, and Sotheby’s Wine. Sotheby’s has a global network of 80 offices in 40 countries and is the oldest company listed on the New York Stock Exchange (BID).

News & Video: http://www.sothebys.com/en/news-video.html; Twitter: www.twitter.com/sothebys; Instagram: www.instagram.com/sothebys; Facebook: www.facebook.com/sothebys; Snapchat ID: sothebys; YouTube: www.youtube.com/SothebysTV; Weibo: www.weibo.com/sothebyshongkong; WeChat ID: sothebyshongkong

*Estimates do not include buyer’s premium. Prices achieved include the hammer price plus buyer’s premium and are net of any fees paid to the purchaser where the purchaser provided an irrevocable bid.

 

Sotheby’s Expands Private Sales Business and Appoints David Schrader as Head of Private Sales For Contemporary Art, New York

Sotheby’s has announced the appointment of David Schrader as Head of Private Sales for Contemporary Art, New York. Mr. Schrader will join Sotheby’s after nearly two decades on Wall Street, most recently as a Managing Director at J.P. Morgan dealing with some of the world’s largest financial institutions. During that time, he also established himself as a respected collector of Post-War and Contemporary Art. In his new role, he will work with Sotheby’s Global Contemporary Art Team and bring his perspective and acumen as a sophisticated collector.sothebys-logo

David successfully combined a passion for art and business to build an enviable collection,” said Amy Cappellazzo, Chairman of Sotheby’s Fine Art Division. “Over a 20 year period, he systematically refined his collection through thoughtful acquisitions and sales, gaining the respect of prominent dealers and collectors. His talent as a seasoned market player and collector is a formidable addition to our team and his appointment is another step forward as we continue to harness the dynamic changes impacting the art world today.”

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David Schrader, Sotheby’s new Head of Private Sales for Contemporary Art in New York

David Schrader began on Wall Street at Bear Stearns in the late 1990s and bought his first work of art around that same time. His professional path took him to Credit Suisse before spending the past five years at JP Morgan. His interest in collecting grew as he built a successful career in finance and his market intelligence is particularly deep on artists including, Josef Albers, Mark Grotjahn, Yayoi Kusama, Sol Lewitt, Gerhard Richter, Ed Ruscha, Rudolf Stingel, Andy Warhol, and Christopher Wool, among others.

Cappellazzo added, “Research has always played a significant role in David’s collecting journey – from visiting galleries every weekend and traveling to fairs, to the analysis of data on artists and individual works. The quick pace of technological development presents, even more, transparency and access to data in today’s market, and David’s approach is a seamless fit into Sotheby’s ethos.”

Mr. Schrader will begin at Sotheby’s in the near future.