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☆ The fall of Gucci was inevitable
▼ + stars: | 2024-05-03 | by ( Madeline Berg | ) www.businessinsider.com time to read: +13 min

"We got used to hearing about double-digit growth at Gucci," Fflur Roberts, the head of luxury goods at Euromonitor, told Business Insider. "I think of what a fashion editor is wearing — it's not Gucci," Lindsey Solomon, a fashion publicist, told BI. After taking the top spot on the Lyst Index of fashion's hottest brands in 2022, Gucci dropped to number 11 last quarter. "We still believe the Gucci brand's current growth rate, which is 10 times higher than that of the industry, represents a risk going forward," Morningstar's Sokolova wrote in a 2017 note. Gucci relied heavily on China for its growth, but stores — perhaps including this one in China's Hainan Province — have struggled recently.

Persons: Alessandro Michele's, loafers, Gigi Hadid, Sienna Miller, Steve Madden, ASOS, Sally Singer, Michele, Fflur Roberts, Alessandro Michele, Harry Styles, Billie Eilish, Jared Leto, Kevin Mazur, Bauer, Griffin, Jeff Kravitz, Gucci, Sabato De Sarno, Lindsey Solomon, De Sarno, François, Henri Pinault, China —, Jelena Sokolova, Solomon, Daniele Venturelli, Michele —, Sokolova, It's, Thomas Chauvet, Morningstar's Sokolova, Michele's Gucci, wasn't, Jeremy Moeller, Chauvet, Roberts, Chanel, Gucci's, Gucci hadn't, Hermès, Birkin, Louis Vuitton's Neverfull, Pinault, Louis, Euromonitor's Roberts Organizations: Creative, Gucci, The Recording Academy, Axelle, Morningstar, BI, Citi, Disney, Getty, Revenue, China News Service, Bain, Louis Vuitton Locations: Euromonitor, China, The Asia, Pacific, China's Hainan Province, Asia

☆ Eat, sleep, live luxury: LVMH is building whole cityscapes centered on their designer stores
▼ + stars: | 2024-04-28 | by ( Hannah Getahun | ) www.businessinsider.com time to read: +5 min

Luxury powerhouse LVMH is investing billions in real estate, The Wall Street Journal reported. Michael Burke, head of LVMH Fashion Group, told the Journal, "We're creating a city." According to the Journal, the company spent $2.1 billion last year acquiring properties in Paris ahead of the Olympic games. Related storiesThe luxury brand is among several spending billions on luxury stores and experiences. Chanel and LVMH are also interested in purchasing properties on New York's Fifth Avenue and the Champs-Élysées in Paris, the Journal reported.

Persons: —, Louis Vuitton Moët Hennessy, Louis Vuitton, Frank Gehry, Michael Burke, we're, Burke, Bernard Arnault, Saint Laurent, Chanel, LVMH, Amar Sitayeb, Saint, Alan DeSousa Organizations: Street Journal, Service, Wall Street Journal, Dior, LVMH, Design, Miami Design District, Gucci, Montenapoleone, The New York Times, Times, Canada, Laurent, Global News, Business Locations: Paris, Pont Neuf, Miami, Montreal, Milan's, New, The, Marais

☆ Kering shares dive after first-half profit warning
▼ + stars: | 2024-04-25 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKering shares dive after first-half profit warningThe owner of Gucci saw its shares dive after warning on Kering's outlook for first-half profit.

Persons: Gucci

☆ Gucci's owner is having a terrible year. The company's profit and stock have slumped as Asia sales dry up.
▼ + stars: | 2024-04-24 | by ( Meghan Morris | ) www.businessinsider.com time to read: +1 min

Kering predicts a 45% drop in its first half-year operating income because of Asia's consumer slowdown. Gucci, Kering's largest brand, suffered an 18% revenue decline, with a sharp drop in Asia. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . In earnings on Tuesday, the company warned that recurring operating income for the first half of the year will decline up to 45%, compared to the first half of 2023.

Persons: Kering's, —, Gucci, Yves Saint Laurent Organizations: Kering's, Service, Business Locations: Asia, China

☆ Kering shares sink 9% after profit warning on declining Gucci sales
▼ + stars: | 2024-04-24 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +1 min

The new Gucci store on Bond Street on 27th September 2023 in London, United Kingdom. Shares of French luxury group Kering sank more than 9% at open on Wednesday, after the company warned that it expects a sharp downturn in first-half profits as a result of waning demand for its Gucci brand. Kering chairman and CEO François-Henri Pinault on Tuesday said the warning comes after the company's performance "worsened considerably" in the first quarter. Group sales fell to 4.5 billion euros in the first quarter, down 10% on a comparable basis. The Paris-based company flagged the anticipated downturn in a rare profit warning last month, noting that the shortfall would be led by declining Gucci sales, particularly in Asia.

Persons: Gucci, François, Henri Pinault, Pinault Organizations: Gucci, Bond Locations: London, United Kingdom, China, Paris, Asia

☆ I visited Chanel's watches and fine jewelry boutique in NYC and saw why the brand is betting on in-person shopping
▼ + stars: | 2024-04-22 | by ( Samantha Grindell | ) www.businessinsider.com time to read: +6 min

In February, Chanel opened a watches and fine jewelry boutique on Fifth Avenue in New York City. My destination was Chanel's watches and fine jewelry flagship, dedicated to exclusive and vintage jewelry from the brand. Anna Weyant and Eileen Kelly at the opening of Chanel's watches and fine jewelry store in February 2024. Amandla Stenberg at the Chanel watches and fine jewelry opening in February 2024. Visiting Chanel's watches and fine jewelry boutique is an experience, which you just can't get online.

Persons: Chanel, Peter Marino, Coco Chanel, —, Bergdorf Goodman, Robb, Saint Laurent, Samantha Grindell, Gilbert Carrasquillo, Anna Weyant, Eileen Kelly, Chanel's, Sean Zanni, Marino, Coco, Amandla Stenberg Organizations: Service, Tiffany, Chanel, Hollywood, Workers, W Locations: New York City, New York

☆ F.T.C. Said to Consider Blocking Major Fashion Merger
▼ + stars: | 2024-04-17 | by ( Lauren Hirsch | More About Lauren Hirsch | ) www.nytimes.com time to read: +1 min

The Federal Trade Commission is preparing to sue to block a luxury fashion mega merger, Tapestry’s $8.5 billion takeover of Capri Holdings, two people with knowledge of the matter said. The F.T.C.’s five commissioners are expected to meet next week to discuss the case, a move that could precede a formal vote on whether to file a lawsuit, the people said. The people, who were not authorized to discuss the deliberations, said that it was still possible that the agency could opt not to sue. Monopoly cases in the fashion industry are rare, because there is no shortage of new labels looking to undercut legacy brands. “It is the paradigmatic part of the economy where there is ample competition,” said Howard Hogan, the chair of the fashion, retail and consumer practice at the law firm Gibson Dunn.

Persons: ’, Kate Spade, Capri’s Versace, Michael Kors, Louis Vuitton’s, ”, Howard Hogan, Gibson Dunn Organizations: Federal Trade Commission, Capri Holdings, Gucci, Monopoly Locations: American

☆ Luxury brands from Gucci to Chanel are placing billion-dollar bets on in-store shopping
▼ + stars: | 2024-04-07 | by ( Katherine Tangalakis-Lippert | ) www.businessinsider.com time to read: +1 min

Luxury brands seek new retail storefronts in a bet that shoppers prefer in-store experiences. The Journal reported Kering, which owns Gucci and Saint Laurent, spent $1.4 billion on a building in Milan. E-commerce surged during the pandemic, but luxury brands thrive in hands-on environments. AdvertisementWhile vacancies in retail real estate have surged since the pandemic, luxury brands from Gucci to Chanel are betting big bucks that their in-store experience will draw in shoppers for the long haul. Kering, which owns Gucci and Saint Laurent, recently spent $1.4 billion on a building in Milan's Via Montenapoleone, The Wall Street Journal reported.

Persons: Gucci, Saint Laurent, —, Chanel Organizations: Service, Gucci, Street Journal, New, Business Locations: Milan, Milan's

☆ Gucci owner Kering tanks 14% after Asia profit warning, dragging down Europe luxury brands
▼ + stars: | 2024-03-20 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +1 min

A Gucci store at Harbour City shopping mall, operated by Wharf Holdings Ltd., in Hong Kong, China, on Friday, June 2, 2023. Shares of French luxury group Kering plunged 14% on Tuesday after the company warned that Gucci sales look set to fall 20% year-on-year in the first quarter, amid declining Asia transactions. Kering plunged to the bottom of the Stoxx 600 after a delayed open, dragging other European luxury lines with it. Gucci comparable revenues in the first quarter are expected to be down by nearly 20% year on year." The slowdown is expected to derive primarily from Asia — and chiefly from China, whose economy has been struggling.

Persons: Gucci, Kering, Christian Dior, Hermes, Burberry Organizations: Wharf Holdings Ltd, Gucci, Asia — Locations: Harbour City, Hong Kong, China, Asia, London, Pacific

☆ Gucci sales to fall 20% in first quarter, Kering warns
▼ + stars: | 2024-03-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGucci sales to fall 20% in first quarter, Kering warnsCNBC's Charlotte Reed discusses Kering's surprise profit warning, as the company forecasts Gucci sales will fall 20% in the first quarter of 2024.

Persons: Kering, CNBC's Charlotte Reed

☆ How Hermès became the ultimate status symbol
▼ + stars: | 2024-02-24 | by ( Madeline Berg | ) www.businessinsider.com time to read: +11 min

A cashmere throw blanket splashed with the letter H. For years, Hermès' iconic products have been coveted by those in the know. Now, its shares are also hot commodities, with their performance outpacing bigger luxury brands like Louis Vuitton owner LVMH and Gucci-maker Kering. "Brand equity is much more diluted than Hermès'," Herzog said of brands like Gucci and Louis Vuitton. Hermès is 'fairly recession-proof'Keeping it simple has helped Hermès hold its own as luxury brands start to lose their shine after a multiyear spending boom. It also announced it will expand the Saint Junien facility in New Aquitaine (also France) which makes Kelly and Birkin bags.

Persons: Hermès, Louis Vuitton, LVMH, Kering's, hasn't, it's, Axel Dumas, Simeon Siegel, Siegel, Birkin, —, waitlists, Edward Berthelot, there's, Hitha Herzog, Nicole Pollard Bayme, Kelly, Versace, Herzog, Gucci, Saint Laurent, Bernstein, Luca Solca, Chanel, Solca, Winston Chesterfield, Barton, That's, Williamsburg , Brooklyn —, Axel, Pierre, Alexis Dumas —, Bernard Arnault's LVMH, Dumas, Barton's Chesterfield, They've, Cousins Axel Dumas, Alexis Dumas, Rodrigo Vaz, Thierry Hermès, they've, We're Organizations: BMO Capital Markets, Capri Holdings, North, Gucci Locations: Hermès, London, China, France, Louviers, Ardennes, New Aquitaine, Aspen , Colorado, Naples, Florida, Nanjing, Princeton , New Jersey, Williamsburg , Brooklyn

☆ How Hermes Became the Ultimate Status Symbol
▼ + stars: | 2024-02-24 | by ( Madeline Berg | ) www.businessinsider.com time to read: +11 min

Now, its shares are also hot commodities, with their performance outpacing bigger luxury brands like Louis Vuitton owner LVMH and Gucci-maker Kering. "The curse of retail is everyone chases more," Simeon Siegel, a senior retail analyst at BMO Capital Markets, told Business Insider about luxury brands. "Brand equity is much more diluted than Hermès'," Herzog said of brands like Gucci and Louis Vuitton. Hermès is 'fairly recession-proof'Keeping it simple has helped Hermès hold its own as luxury brands start to lose their shine after a multiyear spending boom. It also announced it will expand the Saint Junien facility in New Aquitaine (also France) which makes Kelly and Birkin bags.

☆ Why Gucci’s New Creative Director Counts Princess Diana Among His Muses
▼ + stars: | 2024-02-18 | by ( Laura May Todd | ) www.nytimes.com time to read: +2 min

Alessandro Michele’s departure as the creative director of Gucci hadn’t yet been announced. By his own account, he struggled to express himself; young, gay and interested in fashion, De Sarno felt out of place. He did stints at Prada and Dolce & Gabbana before, in 2009, making a more permanent home at Valentino in Rome. During his 14-year tenure there, he cycled upward through various departments until he became the label’s fashion director and the right-hand man of its creative director, Pierpaolo Piccioli. Recently, Gucci announced that the company will relocate the design office from Rome to Milan, where De Sarno feels most at home.

Persons: Sabato De Sarno, Alexander McQueen, Balenciaga, Saint Laurent, “, Alessandro Michele’s, Gucci hadn’t, ” De Sarno, Maria, Raffaele, De Sarno, Pierpaolo Piccioli, Gucci, ”, “ It’s, Sabato, “ I’m, ‘, I’ll Organizations: Gucci, Istituto, Prada, Dolce, Gabbana Locations: Kering, Bottega, Cicciano, Italy, Naples, Milan, Valentino, Rome

☆ TikTok’s ‘Mob wives’ aesthetic is fueling a resurgence of fur
▼ + stars: | 2024-02-01 | by ( Yola Mzizi | ) edition.cnn.com time to read: +7 min

This year may bring even more demand due to the explosion of the “mob wives” aesthetic on TikTok. In 2021, Israel became the first country in the world to enact a ban on new fur sales, while Italy and Norway announced they would stop fur farming. ‘Mob wives’ influenceOn TikTok, trends can rise and fall within a matter of weeks, if not days, and “mob wife” is no exception. In the coming months, Spiber said they will partner with a number of brands to develop custom fur products. Leopard print is another key tenet of the 'mob wife' style.

Persons: CNN — Edwards, Edwards, Lowell Furs ’, —, Paul Matsumoto, Natalie Bloomingdale, Raymond Hall, ”, Matsumoto, it’s, Porter, Versace, Prada, Neiman Marcus, Michael Kors, Israel, François, Henri Pinault, Angela Raiola, Drea de Matteo, Adriana La Cerva, Victoria Gotti, John " Junior, Gotti, Ray Tamarra, Mary Altaffer, Mandy Lee, Lee, Emmanuel Dunand, Kayla Marci, “ We’ve, Spiber, Victor Virgile, Callie Clayton, PJ Smith, Smith Organizations: The, Fashion, CNN, Lowell, HBO’s, Everett, Dolce, Gabbana's, Humane Society of, Business Locations: California, Beverly Hills, Edwards, Dua Lipa, New York, Bloomingdale, Canada, Italy, Norway, Paris, AFP, Zara, Milan, Spiber, United States

☆ Salesforce CEO Marc Benioff tells retail workers: AI won't steal your job. It can make you better at it.
▼ + stars: | 2024-01-24 | by ( Ellen Thomas | ) www.businessinsider.com time to read: +2 min

Generative artificial intelligence won't take jobs from retail workers; instead, it will make them better at their jobs, Salesforce CEO Marc Benioff told attendees at the National Retail Federation's annual conference in New York last week. They're not going to need as many agents," Benioff said. The system was able to augment those agents and make them better," Benioff said. With generative AI, he added, Gucci had taken its customer service agents to "a whole other level." "They're pretty incredible people, using generative AI for the first time," Benioff said.

Persons: Marc Benioff, Benioff, NRF, John Furner, Loro Piana, Gucci —, They're, That's, bam, Gucci Organizations: Business, Walmart, LVMH, Gucci, Kering Locations: New York, Italy

☆ Cristóbal Balenciaga: Secrets of his success
▼ + stars: | 2024-01-19 | by ( Suyin Haynes | ) edition.cnn.com time to read: +9 min

Yet the label’s origins were rather more discreet; founder Cristóbal Balenciaga was renowned for his privacy, secrecy and need for control over every aspect of the design process. “Even though Balenciaga was born very near to where I live in Spain, I didn’t know how important his figure was,” said Lourdes Iglesias, creator of “Cristóbal Balenciaga,” in an interview with CNN via a translator. Cristóbal Balenciaga in 1927, before the war in Spain forced him to move his business to Paris. “He liked to control everything.”The Balenciaga Maison allowed series’ costume designers, Bina Daigeler and Pepo Ruiz Dorado, access to their archives and museum. It’s clearly a very different era now than the one in which Cristóbal Balenciaga was working in.

Persons: Cristóbal Balenciaga, Cristóbal, Balenciaga, —, “, ”, Lourdes Iglesias, David Herranz, Iglesias, Coco Chanel, Elsa Schiaparelli, Boris Lipnitzki, Roger Viollet, Balenciaga ”, Alberto San, Maison, couturiers, d’Attainville, Christian Dior, ” Coco Chanel, Hubert de Givenchy, Grace Kelly, Wallis Simpson, Marlene Dietrich, Carmel Snow, Diana Vreeland, Maison Balenciaga, Bina Daigeler, Pepo Ruiz, Daigeler, Victor Seco, ” Iglesias, Jacques Bogart, Nicolas Ghesquière, Demna, It’s Organizations: CNN, Disney, Jacques Bogart SA Locations: Spain, Paris, Getaria, Basque, Madrid, San Sebastian, Barcelona, French, Alberto San Juan ., Nazi, France, Pepo Ruiz Dorado, Belgian, Europe

☆ Milan Fashion Week: This is what men will be wearing next fall
▼ + stars: | 2024-01-17 | by ( Scarlett Conlon | ) edition.cnn.com time to read: +7 min

This yellow coat and matching hat channeled fisherman chic at SS Daley. Giovanni Giannoni/WWD/Getty ImagesA seafaring element was evident in the collection at Emporio Armani too. To complement the sleek lines of suits came long coats in fine wool and leather that were part “Bladerunner,” part “Matrix” and part ode to the 1990s. The brooch is back, pinned to lapels at S.S. Daley, Magliano, Emporio Armani and Dolce & Gabbana. Functional, useful and classic, as above at Emporio Armani, were the key themes of the season in Milan.

Persons: Milan, Miuccia Prada, Raf Simons, Simons, officewear, Victor Virgile, ”, Daley, Giovanni Giannoni, Emporio Armani, Steven Stokey Daley, Harry Styles, Silvia Venturini Fendi, Anne, Britain's Princess Anne, Alessandro Levati, ” Fendi, Princess Royal, “, chunky knitwear, Neil Barrett, British Harris, Brunello, —, JW Anderson, Justin Shin, tailcoats, Stefano Gabbana, Domenico Dolce, Gabbana, Stefania D'Alessandro, Sabato de Sarno, Tom Ford, Sabato de, Gucci, Daniele Venturelli, de Sarno, Magliano, Massimo Giorgetti, Franco Albini, Gabanna, Armani Organizations: Milan CNN, Prada, CNN, Balmoral, Gabbana, Gucci, Dolce, Milan Metro, diamante Locations: Milan, British, Florence, Wellington, S.S, Saltburn, Italy

☆ Gucci’s Reboot Brings Back Old-School Cool
▼ + stars: | 2024-01-16 | by ( Guy Trebay | ) www.nytimes.com time to read: +1 min

The headline was Gucci. Gucci is, in a way, the Ever Given of the personal luxury goods trade. With more than 500 stores worldwide and an estimated market value in 2022 of $35.3 billion, it is that skyscraper-size tanker, caught sideways. The entire fashion business took a hit during the pandemic and then bounced back, or seemed to, with a surprising resilience. The instincts that helped elevate him from journeyman accessories designer to star were already giving him the itch to move on.

Persons: Gucci, Alessandro Michele, —, Michele Locations: Suez, Florence

☆ Gucci staff strike over plans to relocate to Milan
▼ + stars: | 2023-11-29 | by ( Christy Choi | ) edition.cnn.com time to read: +3 min

CNN —Dozens of employees at Italian fashion house Gucci staged a strike on Monday to protest the company’s decision to move its design office from Rome to Milan. CGIL has argued that asking staff to move to Milan, approximately 300 miles north of the capital, in the first half of 2024 was tantamount to laying them off. Alessandro Garofalo/ReutersFollowing the departure of creative director Alessandro Michele in 2022, Gucci owner Kering shook up the label’s top management. While sales of luxury goods were on a tear earlier in the year, the market cooled in the second half of 2023. The designer gave the old Gucci codes a refresh sending babydoll dresses, tailored short suits, fringed skirts, hoodies and bejeweled knitwear down the runway.

Persons: Gucci, CGIL, ”, Gucci’s, Sabato De Sarno, Alessandro Garofalo, Alessandro Michele, Kering, Valentino, Marco Bizzarri, Jean, François, Yves, Yves Saint Laurent, Bottega, ” Gucci, De Sarno, “ Gucci Ancora ”, “, Julia Roberts, Ryan Gosling, Jessica Chastain, Kendall Jenner, Julia Garner, bejeweled Organizations: CNN, Reuters, Yves Saint, Gucci Locations: Rome, Milan, Bottega Veneta, Balenciaga

☆ Gucci employees in Rome go on strike over creative office move
▼ + stars: | 2023-11-27 | by ( ) www.reuters.com time to read: +1 min

A Gucci sign is seen outside a shop in Rome, April 20, 2023. REUTERS/Remo Casilli/File Photo Acquire Licensing RightsMILAN, Nov 27 (Reuters) - A few dozen employees at fashion house Gucci in Rome went on strike on Monday against the company's decision to move its design office from the Italian capital to Milan. Labour union CGIL's regional office said Gucci's decision was not supported by objective reasons, making hard not to think the real goal was to cut staff. The transfer "does not involve any staff reductions", a spokesperson for Gucci told Reuters. Following the departure of creative director Alessandro Michele in 2022, Gucci owner Kering (PRTP.PA) changed the label's top management, as it seeks to reignite sales momentum at its largest brand.

Persons: Remo Casilli, Gucci, Alessandro Michele, Kering, Elisa Anzolin, Mark Potter Organizations: REUTERS, Labour, CGIL's, Reuters, Thomson Locations: Rome, Milan

☆ After a tough quarter for the global luxury sector, UBS reveals the 3 stocks to buy for 2024
▼ + stars: | 2023-11-24 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Investors looking ahead to 2024 should pick up shares of Hermes , Cartier owner Richemont and Hugo Boss in the luxury goods sector, according to UBS. The Swiss investment bank has a bullish call on those three stocks, though it struck a more cautious tone for the sector. RMS-FR CFR-CH,BOSS-DE YTD line UBS has a price target of 85 euros ($93) a share for Hugo Boss, which points to a 38% upside from the current share price. The Swiss bank also raised its price target for Hermes to 2,216 euros, which is 12% above its current share price. The outlook for the three stocks contrasts with UBS' view that slowing sales momentum and easing pricing power warrant caution on the luxury sector on the whole.

Persons: Cartier, Richemont, Hugo Boss, Zuzanna Pusz, Hermes Organizations: Hermes, UBS, Amundi, CFR, Burberry, EssilorLuxottica, Swatch, Tod's Locations: Swiss

☆ Fewer shoppers in Burberry stores complicates design overhaul
▼ + stars: | 2023-11-17 | by ( Mimosa Spencer | ) www.reuters.com time to read: +5 min

With fewer shoppers heading to Burberry stores, clinching a sale will be key. The label has filled its stores with new styles across a wider price range, including a renewed emphasis on its staple outerwear. At Burberry he has applied colourful dandelion prints to garments and rolled out advertising campaigns with fuzzy ducklings. "We like what Burberry is doing with product and range architecture, however, the timing is not ideal," said analysts at RBC. Burberry Chief Financial Officer Kate Ferry said the company was "absolutely committed to protecting all of the consumer-facing areas".

Persons: Daniel Lee's, Jonathan Akeroyd, Akeroyd, Riccardo Tisci, Lee, Tisci, Marco Gobbetti, Kering, LVMH, Louis Vuitton's womenswear, Nicolas Ghesquiere, Kate Ferry, Mimosa Spencer, Paul Sandle, Kirsten Donovan Organizations: Burberry, Shoppers, JPMorgan, Bond, Bottega, RBC, Gucci, Citi, Thomson Locations: United States, Europe, China, Los Angeles, Dallas, Houston, Omotesando, Tokyo, London

REUTERS/Thomas Peter/File Photo Acquire Licensing RightsSHANGHAI/PARIS, Nov 17 (Reuters) - The world's biggest luxury brands seeking growth in their second-largest market China are all courting the likes of wealthy entrepreneur Diana Wang. "Luxury brands offer you this event experience, this personal experience and it makes you feel privileged," Wang told Reuters. This week, Burberry (BRBY.L) also flagged low double-digit growth due to a slowdown in luxury spending globally, and in China. FEEDING THE LUXURY HABITEven as they narrow their focus, luxury brands remain optimistic about the potential in China, which is forecast to account for almost 40% of global luxury sales by 2030, according to consultants Bain. Luxury consultant Mario Ortelli said several luxury firms are hedging their bets on China by also expanding their global footprint.

Persons: Thomas Peter, Diana Wang, Wang, Tiffany, Chopard, Jacques Roizen, Cartier, Richemont, It's, Jean, Marc Duplaix, Versace, Donatella Versace, Gucci, Chanel, Dior, Cyrille Vigneron, LVMH, Louis Vuitton, Bain, Eric du Halgouet, Birkin, Mario Ortelli, Ortelli, it's, Mimosa Spencer, Casey Hall, Miral Organizations: Tiffany, REUTERS, Rights, Reuters, Burberry, HSBC, Digital Luxury, Chanel, Shanghai, Capri Holdings, Tapestry, Bund, Thomson Locations: Beijing, China, PARIS, Shanghai, Cartier, Shenzhen, South Korea, Japan, Thailand

☆ Choppy luxury waters lift Burberry turnaround bar
▼ + stars: | 2023-11-16 | by ( ) www.reuters.com time to read: +2 min

MILAN, Nov 16 (Reuters Breakingviews) - Stuttering consumer confidence is complicating CEO Jonathan Akeroyd’s attempts to revive Burberry (BRBY.L). Like-for-like retail sales in the quarter to end-September grew a dismal 1% at the UK maker of fancy trench coats, below analyst expectations of 4%. But brands attempting a revamp, like Burberry or Kering’s (PRTP.PA) star label Gucci, are likely to suffer more than rivals. Akeroyd sounded confident that new designer Daniel Lee’s first collection, which was launched in shops in September, will energise shoppers. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Jonathan Akeroyd’s, Gucci, Daniel Lee’s, Lisa Jucca, Neil Unmack, Streisand Neto Organizations: MILAN, Reuters, Burberry, X, Alstom, Thomson Locations: China, U.S

☆ Britain's Burberry hit by slowdown in luxury spending
▼ + stars: | 2023-11-16 | by ( Paul Sandle | ) www.reuters.com time to read: +2 min

LONDON, Nov 16 (Reuters) - Britain's Burberry (BRBY.L) said it was being hit by a global slowdown in luxury spending and it would struggle to meet its annual revenue forecast of low double-digit growth, with a knock-on impact on profit, if it continued. Demand in China, however, fell away in the second quarter from a strong bounce back from the impact of COVID lockdowns. Burberry said spending by Chinese luxury consumers had shifted overseas from mainland China. Tourist growth benefited European destinations, it said, with just over half of spending in the region coming from international visitors. But a weak performance in the Americas worsened in the quarter, with comparable store sales down 10%.

Persons: Burberry, Daniel Lee, Louis Vuitton, Tiffany, Yves Saint Laurent, Balenciaga, Richemont, Jonathan Akeroyd, Paul Sandle, James Davey, Kate Holton Organizations: Dior, Bottega, Cartier, Thomson Locations: China, Americas

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