01 Luxury goods consumption continues to decline, and leading brands erode the remaining industry stock market
Gucci Gucci’s parent company, Kering Group, and Louis Vuitton’s parent company, LVMH and LVMH, both experienced sharp declines in their mid-term performance. After nearly half a century of continuous expansion and power transfer, the luxury goods industry is reaching a crossroads.
It mainly originated in France and Italy in Europe. With the development of the U.S. economy and Wall Street, it gradually formed an industry. It then swept across Asia after the rise of Japan’s economy, and then reached a level due to China’s economic boom. Heyday. In the future, LV, Gucci, Hermes and Chanel will erode the industry’s existing market. Most of the second-tier brands such as Mulberry may be in trouble.
02 Prada sales fell by 40%, losing 180 million euros in half a year
Although Prada’s sales fell by 40% in the first half of the year, higher than analysts’ previous expectations, group CEO Patrizio Bertelli is still confident that overall sales growth will be achieved in the second half of the year.
According to data provided by Refinitiv, in the six months to June 30, the group’s revenue fell to 938 million euros at constant exchange rates, a decline greater than the analysis 35% of the division’s previous expectations. Prada pointed out that retail sales in mainland China increased by nearly 60% in June and further increased to 66% in July. Online e-commerce sales also surged by 300% in June and July.
03 Kering Group Bottega Veneta performed best, only declining 8.4%
The French luxury goods company Kering Group released its performance report for the first half of fiscal year 2020. Affected by the epidemic, sales in the first half of the fiscal year fell 29.6% year-on-year. to 5.378 billion euros; second-quarter sales fell 43.7% year-on-year, which was better than the 46% decline previously expected by UBS (United Bank of Switzerland) analysts. Bottega Veneta performed best, with sales in the first half of the year falling only 8.4% year-on-year to 503 million euros, including a 24.4% decline in the second quarter.
04 Ferragamo’s second quarter sales fell 60%, first half fiscal year sales It fell 46%, with the strongest performance in the Chinese market
The Italian luxury brand Salvatore Ferragamo released its first-half fiscal year performance report, which showed that in the six months ended June 30, its sales Revenue fell 46% year-on-year to 377 million euros, and sales in the second fiscal quarter fell 60%.
During the period, the brand’s core business of footwear sales fell by 46.4%, leather products and handbags fell by 43.6%, ready-to-wear sales fell by 47.3%, and perfume sales fell by 66.3%. . Sales trends improved in all markets in July. Ferragamo said in a statement: “Compared with July 2019, as of July 25 this year, the brand’s directly-operated stores in mainland China, South Korea and Japan have achieved strong growth.”
05Onlineparticipationinpopulardigitalfashionshowsislessthanone-thirdofwhatitusedtobe
AccordingtodatatrackingcompanyAccordingtodatafromTribeDynamics,amongthemorethanadozenmajorluxurybrandsthathaveturnedtoonlinedistribution,nonehascausedasbigastironInstagramaslastyear’sfashionshow.Onaverage,itsdigitalfashionshows,videosanddemosgeneratelessthanathirdoftheonlineengagementtheyusedto.DatafromLaunchmetrics,anotheronlinedatatrackingagency,showsthattheall-digitalLondonFashionWeek,whichisdominatedbysmallbrands,hasalsoexperiencedasharpdecline,withsocialmediaparticipationreducedby55%comparedwithJanuary.ThelacklusterresponsetodigitalshowsmaystrengthenthepushforbrandstoresumeofflineshowsafterSeptember.
AccordingtoreportsfromtheItalianFashionChamber(CameraNazionaledellaModaItaliana),asbrandssuchasPradaandErmenegildoZegnahavemovedonline,thecontentofMilanDigitalMen’s Wear Week is on its platform It received a total of 300,000 views and 15.1 million plays. According to data from brand consulting firm DMR Group, its digital content reached 105.59 million users through social media platforms such as Facebook, Instagram, YouTube and Weibo, generating a media value of US$6.24 million.
06 Nike became the most popular brand in the second quarter of this year, the first time that a luxury fashion brand has not Top of the list
The list of the most popular brands in the second quarter of 2020 released by the fashion search engine Lyst shows that Nike climbed to the top of the list from third place in the previous quarter. This is also Since Lyst released this series of lists, it is the first time that a non-luxury fashion brand has topped the list. During the quarter, consumer demand for casual wear and sportswear increased by 106%. At the same time, the Air Jordan co-branded sneakers in collaboration with Dior further promoted Nike’s popularity. In addition, Birkenstock’s Arizona sandals became the hottest women’s product of the quarter.
07 SMCP Group’s second quarter sales fell 46%, and online sales overall increased 32%
SMCP Group, the parent company of Sandro and Maje, released its second fiscal quarter results, showing that during the reporting period, the group’s sales fell 45.8% year-on-year to 144.1 million euros, of which Sandro brand sales fell 44.9% year-on-year to 71.5 million euros, and Maje brand sales fell 44.9% year-on-year to 71.5 million euros. Sales of other brands fell 49% to 53.8 million euros, and sales of other brands fell 38.1% year-on-year to 18.8 million euros. In addition, the group’s online sales overall increased by 32%, with an increase of 39.7% in Europe alone.
08 Issey Miyake stopped operating men’s clothing series, saying it made this decision before the epidemic
Japanese fashion brand Issey Miyake announced that its men’s clothing series Issey Miyake Men will officially cease operations in the autumn and winter of 2020, and is currently planning to close its directly operated stores and online malls. The brand stated that this decision was made before the epidemic and was not affected by the epidemic.
09 Victoria’s Secret announced store closures in China and layoffs of 850 people globally, and it is expected that every year Saving US$400 million in costs
L Brands, the parent company of Victoria’s Secret, said that in order to cut costs, it plans to lay off 15%, about 850 jobs, and will pay 7,500 Thousands of dollars in severance pay. It expects to save about $400 million annually through layoffs and inventory cuts.
10 Nike gives up its third American factory for the Air series Investment
American sports giant Nike recently announced that it will cease operations at its factory in Goodyear, Arizona due to the epidemic.
In 2019, Nike spent $70 million to acquire this factory in Phoenix and plans to transform it into the third factory in the United States dedicated to producing the Air series. At the time, Nike said it expected to invest US$184 million and bring more than 500 jobs to the local area. Nike originally planned to build this place into the most advanced factory for the Nike Air series. The factory was originally scheduled to be put into use in 2020. Nike did not disclose whether the factory has begun operations, nor did it mention the number of employees affected.
11 Boohoo stops bleeding and will follow the example of Zara to build its own factory
British ultra-fast fashion retailer Boohoo will build its own factory in Leicester with local joint venture partners as early as September and start producing clothing on its own. The new factory or nearby temporary factory will create about 250 manufacturing jobs. Some analysts believe that Boohoo’s move is aimed at resolving previous controversies caused by alleged poor working conditions. It also hopes to copy the model of Inditex, the parent company of Spanish fast fashion giant Zara, and further shorten the production cycle through self-production and self-sales.
12 Under Armor received a notification from the SEC Wales and the stock price did not fall but rose
The U.S. Securities and Exchange Commission (SEC) issued “Wells Notices” to Under Armour Inc. (NYSE:UAA) Under Armour’s executives, informing its investigators to recommend that the SEC target the U.S. sporting goods company The giant filed for legal action against its founder and executive chairman Kevin Plank and chief financial officer David Bergman over accounting issues. Under Armor Inc. emphasized in today’s SEC 8-K filing that the “Wells Notices” are not formal accusations of misconduct and do not rule that the group violated any laws.
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