Kering, the owner of luxury brand Gucci, has reported a 4% decline in fourth quarter sales, indicating a slowdown in the demand for fashion which has impacted its major brands, not just Gucci. Despite this, Kering noted a sequential improvement from Q3 and an improvement in performance in the United States and Europe. In stark contrast, Hermes has experienced a significant increase in sales, with a reported 17.5% rise in the fourth quarter of 2023, demonstrating the resilience of high-end shoppers. Hermes has seen strong growth across multiple regions, including a 22% increase in the United States, and is well-positioned to raise prices in 2024 due to its strategy of self-limiting leather goods and protecting brand equity. The company's success sent its shares to a record high and briefly made it the second most-valued company in the French blue-chip CAC 40 index, surpassing L’Oreal. Meanwhile, other luxury brands like Cartier and LVMH reported increases of +12% and +9% respectively, and Hermes saw sales growth of 20%+ in 4 of 6 regions. Kering also predicts that the luxury slowdown will continue into 2024, and Capri has cited weaker luxury demand in the US.
Hermes' value briefly overtook that of L’Oreal for the first time, making the Birkin bag maker the second most-valued company in the French blue-chip CAC 40 index https://t.co/Nim8x9JBMW
Hermes' value briefly overtook that of L’Oreal for the first time, making the Birkin bag maker the second most-valued company in the French blue-chip CAC 40 index https://t.co/Ywm01J41AL
$RMS.PA #luxury These FY-23 #Hermes results are spectacular… …21% revenue growth & it’s remarkably consistent across the board in terms of product category & geography: https://t.co/t4wXIuguZU
Hermes sales outstrip luxury rivals, send shares to record high - Reuters https://t.co/0LECn3sqQr
So even as under-performers like Kering saw upturn in US & on day Hermes reports bumper 22% US sales growth, Capri cites weaker luxury demand in US for awful numbers. Sure. 🤦♂️ $CPRI $TPR $PPRUY $LVMUY $HESAY $RL https://t.co/poyr5B2Iv2
Self-limiting leather goods, zealously protecting brand equity & more measured price rises than in past mean Hermes is well positioned to raise prices again in 2024 even as luxury peers sense limited room. $HESAY $LVMUY $CFRUY $PPRUY $CPRI https://t.co/gpRcWtABME
Hermes blows lights out yet again with 18% sales growth to close out 2023. Sales up 20%+ in 4 of 6 regions including the US. Beauty of $HESAY is it’s getting there DESPITE capping leather goods. $LVMUY $CFRUY https://t.co/qbyI3YnkWi
Coveted handbags carry Hermès to strong growth to defy luxury slump https://t.co/snQLUBixle
⚠️ HERMES SALES JUMP 17.5% AS DEMAND FOR EXPENSIVE GOODS PERSISTS (Reuters) Sales at Birkin bag maker Hermes rose 17.5% in the fourth quarter of 2023, showing the resilience of high end shoppers despite economic headwinds. Sales for the three months to the end of September… https://t.co/pNqb4Po4MW
Luxury slowdown will continue into 2024, Gucci owner Kering says https://t.co/KZq5l41C1S
Kering may have improved sequentially from Q3 levels. But still down 4-5% at every major brand & not just Gucci. Hard to describe how awful that vs +12% at Cartier or +9% at LVMH. Top tier luxury is leaving others WAY behind. $PPRUY $CFRUY $LVMUY $HESAY https://t.co/dMZ9wPBZuV
Gucci owner Kering fails to reverse sales slide https://t.co/Slwx3XdDVt
⚠️ KERING Q4 SALES DECLINE 4%, FLAGS IMPROVEMENT IN US, EUROPE (Reuters) Kering posted a 4% decline in fourth quarter sales, hit by slowing demand for fashion as it seeks to turn around its top brand Gucci, but flagged an improving performance in the United States and Europe.… https://t.co/WSIll4FzHo