Luxury Headlines – 21/02/2024
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Balenciaga Adds Second Flagship Boutique on Avenue Montaigne
Balenciaga is set to open a second flagship, Avenue Montaigne 56, across the street from the original flagship at number 57, which opened in 2017 under creative director Demna. In addition, the brand has completed the restoration and expansion of the iconic Avenue Georges V no.10, spilling over into no. 12 to allow for doubling the size of its couture salons and adding new offices. The Avenue Georges V venue is thus cementing its status as the creative headquarters and the center of couture for Balenciaga.
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MyTheresa Sees Return of Aspirational Customer
MyTheresa reported a solid performance: net sales grew 8.3 % year-on-year to €197 million in the second business quarter, which ended 31 December 2023. Globally, Mytheresa's high-spending customers grew 15.6% this quarter, and the average order value reached a record high, rising 5.4% to €672. While MyTheresa has been focused on high-spending customers, the company has also observed a return of aspirational customers in the US. The company is expecting continued growth in the US and expressed optimism about the future.
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Farfetch CEO José Neves to Step Down
Farfetch founder José Neves is to step down from his role as CEO, with no successor appointed yet. Neves founded Farfetch in 2008, and it became a major online luxury retailer. Following some extended financial struggles, the company was acquired by South Korean company Coupang in December 2023. The departure of other key executives accompanies Neves's departure. The Coupang acquisition took Farfetch private (formerly listed on NYSE in 2018), effectively wiping out shareholders' investments. A group of shareholders is taking Farfetch to court, asking to recoup $400 million in return for their lost investments.
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Tod’s Shares Rise on L Catterton Deal
Tod's Group's share price rose 17.4% following L Catterton’s offer to buy 36% of the company in a transaction that would take Tod’s private, in agreement with the Della Valle family, who will keep a majority 54% stake. The offer from the LVMH-backed private equity firm values Tod's Group at €1.4 billion. Tod’s Group’s brands include Tod’s, Fay, Hogan and Roger Vivier.
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EssilorLuxottica Posts Robust Revenue Growth Despite A Miss on Earnings
For full-year 2023, EssilorLuxottica, makers of Ray-Ban and Oakley eyewear, reported adjusted operating margins slightly below analyst expectations (16.5% vs 16.9% analyst consensus) due to higher costs and persistent inflation. However, revenue growth remained strong, with the fourth business quarter totaling €6.25 billion ($6.7 billion). Asia-Pacific and Latin America stood out with robust performances, with 10.3% and 12.7% growth, respectively. Recently, the company added Jimmy Choo and Moncler, as well as new products like the Ray-Ban Meta wearables to the portfolio. The company confirmed its target for mid-range single-digit annual revenue growth from 2022 to 2026.
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