LUXURY: Sales growth decelerated to 2 percent, up to $5.89 billion, in the first half of the year at LVMH MOET HENNESSY LOUIS VUITTON, but the luxury powerhouse expects operating profits to advance 15 percent for the half nonetheless when it reports...
LUXURY: Sales growth decelerated to 2 percent, up to $5.89 billion, in the first half of the year at LVMH MOET HENNESSY LOUIS VUITTON, but the luxury powerhouse expects operating profits to advance 15 percent for the half nonetheless when it reports bottom-line results for the period next month. Group sales fell 2.5 percent to $2.9 billion in the second quarter. Lifted by the addition of Donna Karan’s business, LVMH’s fashion and leather goods division, its largest business group, saw sales leap 16 percent in the first half, to $2.04 billion. Marc Jacobs, Céline and the footwear firm Berluti were cited for special merit, as was the performance of Louis Vuitton in both Japan and the U.S. Sales of perfumes and cosmetics inched up 2 percent to $1.07 billion in the half, besting analysts’ expectations. Watches and jewelry sales dipped 3 percent to $257.9 million. Selective retail volume slipped 9 percent to $1.58 billion in the half. Sales at DFS, hard-hit in Hawaii, North America and mid-Pacific destinations, fell 21 percent versus a year ago. On the plus side, it noted that Sephora logged same-store sales growth of 25 percent in the U.S. LVMH continues to expect that DFS, trimmed off $150 million in operating costs, will break even this year, while Sephora is expected to turn a profit in 2003.... GUCCI GROUP chief Domenico De Sole last month said that the firm is on track to meet its financial targets for the year, banking on second-half improvement to allow the luxury house to log fully diluted earnings per share of between $2.58 and $2.98 when the year ends next January. Sales are slated to hit $2.68 billion when the year is through. These numbers compare to EPS of $2.74 and revenues of $2.29 billion last year. At the same time, the company and its 53 percent owner, French-based retailing powerhouse Pinault Printemps Redoute, expressed confidence that PPR will have the cash necessary to buy Gucci’s remaining equity for $101.50 a share in 2004 amid concerns that PPR might need to sell assets in order to meet its $5 billion commitment to buy the rest of Gucci.... BURBERRY went public last month at $3.50 a share, valuing the company at $1.69 billion. While Britain’s FTSE 100 index dropped 8.5 percent on Burberry’s first day as a public company, the stock was off just 2 percent, to $3.38. Chief executive Rose Marie Bravo, catching her breath after a long road show, holds about 1 percent of its shares. Parent GUS retains 77.5 percent of the company.... PRADA GROUP never got to the IPO stage, however. After three postponements, chief Patrizio Bertelli finally said there would be no initial public offering for Prada in 2002 after three separate IPO postponements. "Depending on market conditions, we will go public in 2003 or 2004," he said. Before calling off any chance of an IPO this year, the company had planned to list the company’s shares at the end of June. Among the alternatives being considered by Prada to reduce its debt, most recently listed at $843.2 million — the sale of some of its more than $550 million in real estate assets. Its real estate could be placed in a separate entity jointly owned by a bank with the venture issuing bonds guaranteed by the value of the property.... MARZOTTO in March acquired Valentino from Holding di Partecipazioni Industriali for $210 million, including the assumption of debt, but its attempts to build the designer house may have been thwarted by problems with an earlier acquisition, Germany’s Hugo Boss AG. Marzotto said it hopes to turn a profit with Valentino by 2004. Meanwhile, difficult market conditions and an inventory scandal in the U.S., which led to the departure of long-time Boss U.S. ceo Marty Staff, and the failure of its Boss Woman operation to catch fire caused Boss’ net income to fall by about half, to $30 million, during the first half of 2002. The company has twice lowered profit expectations this summer.... COMPAGNIE FINANCIERE RICHEMONT’s net income dropped by two-thirds in the fiscal year ended March 31, as sales advanced 4.8 percent to $3.65 billion. CEO Johann Rupert saw little on the horizon suggesting immediate relief when year-end results came out in June.
BEAUTY: ESTEE LAUDER COS. expects diluted earnings of $1.28 to $1.33 a share in fiscal 2003 to go with a 5 to 6 percent uptick in sales when measured local currencies. While Wall Street analysts worried that these targets left the beauty giant with insufficient "wiggle room," Fred Langhammer, president and chief executive, responded, "I’m raising the hurdle and this management team is going to be paid against this hurdle. I don’t feel that we’ve been overconfident." Lauder finished 2002 with net income of $168.5 million, or 70 cents a diluted share, 40.2 percent below prior-year levels, after reductions from charges, accounting changes and preferred stock dividends....At REVLON, Jack Stahl, imported from Coca-Cola to take the reins as president and ceo, made the buffing of the namesake brand a cornerstone of his turnaround plan for the company, which saw second-quarter losses narrow to $38.9 million, or 75 cents a share, from $56 million, or $1.07, in the year-ago period as sales simmered down 4.3 percent to $308.2 million in the quarter. Revlon’s seeking annual top-line growth of 10 to 12 percent and wants its EBITDA (earnings before interest, taxes, depreciation and amortization) to exceed that pace....L’OREAL’s first-half sales grew 5.6 percent to $7.29 billion (converted from the euro) despite currency fluctuations that have hurt the French beauty firm’s revenues in recent months after helping them earlier in the year. CEO Lindsay Owen-Jones expects more fluctuation, but said he felt that "the combination of strong organic growth, the continued improvement in margins and the currency hedging policy should allow L’Oreal to remain on track."... Net income for PROCTER & GAMBLE’s beauty segment, excluding restructuring costs, rose 45 percent to $248 million in the fourth quarter as sales leapt 22 percent to $2.14 billion. Results reflect the Nov. 2001 acquisition of Clairol, which brought P&G into the realm of hair color, for $4.95 billion, its largest acquisition ever.... AVON PRODUCTS saw its second-quarter net income climb 12.5 percent to $154.9 million, or 64 cents a diluted share, as sales picked up 4.1 percent to $1.53 billion. Sales were up 10 percent in local currencies, units rose 12 percent and there were 1 percent more active representatives.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over the top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty