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The major luxury goods groups handed over
Answer sheet for the first quarter of 2024.
From the perspective of growth rate,
The luxury industry as a whole is cold,
The performance differentiation is obvious,
It can be described as a few happy and a few sad.
Sales soared 89% in the first quarter
MiuMiu became the biggest dark horse
Miu Miu, a subsidiary of the Prada Group, bucked the trend and boosted the performance growth of its parent company, Prada Group, becoming the biggest dark horse.
According to Prada Group's financial report for the first quarter of 2024, the group's operating income increased by 16.5% year-on-year to 1.187 billion euros, exceeding market expectations.
Prada, the main brand, saw sales increase by 7% year-on-year to 826 million euros, while Miu Miu's sales reached 233 million euros, an 89% year-on-year increase.
Screenshot from Prada Group's 2024Q1 financial report
The Chao News reporter found that the MIU series is very popular on a social platform, with more than 670,000 notes just searching for "MiuMiu", as well as a number of derivative entries such as "MiuMiu girl", "MiuMiu bag, shoes, socks", etc., and the traffic is very high. Many bloggers posted a MiuMiu outfit, and even various combinations of doll bags and bags.
Source: MiuMiu's official blog
In the Miu Miu Tmall flagship store, the Chao News reporter found that the hairpin priced at 3250 yuan was almost sold out. Its lambskin hairpins are out of stock in 9 colors, and the patent leather hairpins at the same price are only available in black and red.
The staff of the Miu Miu Tmall flagship store responded that it will still replenish the stock from time to time, and you can join the store membership and notify you when the new replenishment is on.
Some netizens joked, "Can you become an immortal if you wear it?" and some netizens asked: "How many carats is this clip?"
Source: MiuMiu Tmall flagship store
Not only is a small hairpin sold for 3,250 yuan, Miu Miu's glasses rope is priced at 4,750 yuan per piece, and a "embroidered silk and wool underwear" is sold for as much as 42,200 yuan, which has also aroused heated discussions on the whole network.
It can be seen that MiuMiu's resurgence in popularity in recent years is due to its bold design that attracts attention, but also because it provides consumers with a channel to innovate value and satisfy rebellion in an environment where luxury brands continue to increase prices and design is boring.
LVMH Group
The performance began to decline
LVMH Group's financial report for the first quarter of this year showed that the group's sales fell 2% year-on-year to 20.7 billion euros.
Among them, the revenue of LV and Dior's fashion and leather goods division fell by 2% to 10.49 billion euros, the worst performance in the past two years, while in terms of sales regions, sales revenue in the Asian market (excluding Japan) fell by 6% year-on-year, and the contribution to the LVMH group fell from 36% to 33%.
Wang Jingping/photo
By sector, the biggest decline was in the Wine & Spirits segment, where revenue fell 16% and 12% year-on-year. Revenue in the fashion and leather goods segment decreased by 2% year-on-year, while revenue in the watches and jewelry division decreased by 5% year-on-year.
香水和化妆品部门收入同比增长3%,Christian Dior克里斯汀·迪奥、Guerlain娇兰、Parfums Givenchy纪梵希香水都取得不错的成绩。
Boutique segment revenue increased 5% year-over-year, driven by Sephora's continued market share gain, particularly in North America, with continued expansion of its store network.
截自LVMH2024Q1财报
Rodolphe Ozun, LVMH's director of financial communications, said that the organic growth achieved in the first quarter brought the group's average growth over the past five years to 10 percent, and 16 percent for the fashion and leather goods division, which represents a significant increase in market share.
In response to the decline in revenue in the fashion and leather goods division, which accounts for the largest share of the total results, LVMH CFO Jean-Jacques Guiony said in a post-earnings conference call that LV's sales were slightly above the departmental average, but Dior was below that level.
Kering's core brand
Gucci's profits plummeted
Kering's first-quarter sales plunged 18% to 2.1 billion euros, slightly higher than analysts' consensus expectations, but still significantly wider than the previous quarter's decline of 4%.
Kering said Gucci's declining revenue and the continued investment needed in the brand will hurt the company's first-half profits, which are expected to plunge 40 to 45 percent in the first half of the year, far exceeding analysts' previous forecasts of a decline of 24 to 30 percent.
Wang Jingping/photo
Citibank analysts speculate that Gucci's sales may improve this year as more new collections come online, marketing efforts are intensified and changes in senior management are made, but the pace of transformation may be slower than expected.
Meanwhile, Saint Laurent, a cash cow within Kering that had previously replaced Gucci as the growth engine, also fell 6% to 740 million euros.
Bottega Veneta grew 2% to 390 million euros, while Balenciaga recorded double-digit growth in markets such as North America, benefiting from the Los Angeles show.
Balenciaga RODEO handbags are shown to be out of stock. Screenshot from Balenciaga applet
In terms of reasons, Hurun analysis said that the uncertainty and economic growth rate of the global economy have had a phased impact on luxury consumption, which has led to a slowdown in the growth of the luxury market to a certain extent.
Hermes with a growth rate of 17%.
Continuing to lead
Looking at the Hermes Group, its sales revenue in the first quarter of 2024 increased by 12.6% year-on-year to 3.805 billion euros (about 29.581 billion yuan), an increase of 17% at constant exchange rates. Compared to the same period last year, the Hermès Group grew by 22.3% year-on-year in the first quarter of 2023 and 18% in the fourth quarter.
By category, the Leather & Saddle segment accounted for the largest share of total sales in the first quarter, with sales revenue increasing by 15.5 percent year-on-year to 1,628 million euros. Sales revenue in the Apparel & Accessories division increased by 11.7 percent to 1,061 million euros, while the Silk Fabrics division and the Perfumery & Beauty division increased by 3.4 percent and 3 percent to 242 million euros and 130 million euros, respectively. The watch division grew by only 0.1 percent to 166 million euros.
Specifically, sales in Japan increased by 10.8% y/y to EUR 357 million, while sales in the Asia-Pacific excluding Japan increased by 8.9% to EUR 1.92 billion. It is worth mentioning that in the same period of 2023, revenue in Asia ex-Japan grew by 23% in the quarter, mainly due to strong demand in China, which also grew by 26%.
Hermès Group said that it is full of expectations for 2024, and although there are uncertainties in the global economy, geopolitics and exchange rate changes in the medium term, it still confirms the goal of continuous revenue growth.
Wang Jingping/photo
According to some analysts, the customer base of Hermes for high-net-worth individuals is relatively less affected by economic changes, and the scarcity of its products brings higher social status display value. Even for middle-class consumers, buying entry-level products from such brands often yields better returns on value preservation.
Comparing the performance of various luxury groups in the first quarter of 2024, in terms of sales, LVMH Group's fashion and leather goods division sales of 10.49 billion euros are still the biggest winners in this quarter, followed by Kering Group with 4.5 billion euros, Hermès with 3.805 billion euros, and Prada Group with 1.187 billion euros.
Nowadays, in the luxury industry, luxury brands are no longer pursuing explosive growth, but competing for who has the most stable development momentum, who has the most loyal customers, and who can find new opportunities from more segmented markets.
Source: Chao News