Chanel Announces Asia Leadership Changes
Chanel is experiencing a generational shift in leadership. Several long-time executives are retiring, including the Asia Pacific president Vincent Shaw. His role will be split between Renaud Bailly and Stephanie Couette. Bailly and Couette are currently Managing Directors of China and Hong Kong/Macau, China, respectively. They will report directly to Leena Nair, the CEO. According to Philippe Blondiaux, the CFO, Chanel considers itself lucky to be able to source such a talented generation of new leaders for the finance functions.
Hilton Partners with Small Luxury Hotels of the World
Hilton and Small Luxury Hotels (SLH) of the World have just announced a partnership to expand the global luxury portfolio dramatically. Hundreds of independent hotels will be added to the Hilton portfolio, giving guests access to new destinations. The SLH community counts 560 hotels in 90 countries worldwide. The partnership will benefit both companies. More details about the partnership are to be announced soon.
Ralph Lauren Posts Higher Revenue on Asia Sales
Ralph Lauren posted a substantial uptick in the third business quarter revenue, up 6% to $1.9 billion, primarily driven by Asia, the strongest performing region, with sales up 16% to $446 million. The company also saw strong growth in China, Japan, and Korea. Europe was up 11%, while US sales looked more or less flat, a combination of a 5% uptick in in-store sales but a 15% headwind in the wholesale channel. A combination of strong DTC and international channels were substantial contributors to these goods results. The company expects a modest sequential improvement of about 2% in Q4, with more robust trends in DTC offsetting continued softness in wholesale.
Tapestry Announces Profit Forecast 2024
Tapestry has just announced a profit increase in their forecast for 2024, primarily driven by strong international growth and robust sales estimates. The company is expecting substantial growth in China and Europe, with sales rising 19% and 11%, respectively. Coach performed well, posting a 6% increase in revenues in Q1, with handbags whose sales nearly doubled being a bright spot. Price increases are to be expected, according to management.
Tod’s Group to Go Private in Deal with L Catterton
Tod's Group, owner of Tod’s, Roger Vivier, Hogan and Fay brands, is going private in a deal with L Catterton. L Catterton will pay €512 million, which translates into €43 per share for its stake. According to the terms of the deal, the Della Valle family will retain majority ownership of 54%, with L Catterton owning 36% and the remaining 10% stake going to LVMH, who is a minority investor in the deal. Tod's has experienced slowing momentum in recent times, but sales surpassed their 2015 peak last year, rising 11.9% to €1.12 billion. Going private could allow Tod's to invest more in marketing and the ability to clean up distribution channels.
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