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.
Breaking: @cushnieetochs’ co-founders @carlycushnie and @ochsmichelle are parting ways. After a 10-year run, Ochs is leaving the brand. Get the full story on WWD.com – link in bio. #wwdnews #wwdfashion
@maybelline’s Kanako Takase had snow bunnies in mind when creating the beauty look for @philipppleininternational. Playing off of the bedazzled snowboards in the collection, Takase mixed two highlighters together for a luminous sheen. #wwdbeauty #nyfw (📷: @jilliansollazzo)
“There’s a huge gap between the old way of doing things and today. It takes the youth to help evolve that. You have to count on the kids today to help lead you into the future. A lot of these retailers are stuck in the past. Communication is the biggest thing,” said @ronniefieg of @kith on the youth’s role in retail. On Monday night, Jeff Staple moderated a keynote session with Fieg and @syresmith at Assembly - a series of workshops, talks and keynotes addressing topics or issues in the apparel industry. Head to WWD.com to read more advice from Fieg and what Smith thinks of his dad @willsmith’s Instagram account and sustainability (📷: @weston.wells)
@joansmalls closed the @michaelkors fall 2018 show in black sequined pants and a varsity T printed with 19 on the front and 81 on the back. 1981 – the year Kors went into business. #wwdfashion #nfyw (📷: @giovanni_giannoni_photo)
“You think your life is going to be a certain way, and nothing you thought would happen ends up happening. Never in my wildest dreams did I think I’d be designing clothes and working with Mickey Drexler, and building something I’m deeply proud of,” said Jenna Lyons. Nine months after leaving @jcrew, Lyons is exploring the meaning of happiness. Read the interview, where Lyons talks about reinvention and more on WWD.com – link in bio. #wwdfashion (📷: Farrell) #jennalyons #jcrew