Businessoffashion.com revealed that Burberry Group Plc said earnings this year will be at the low end of analysts’ estimates as the UK’s largest luxury-goods maker struggles to cope with ebbing demand in Hong Kong and Europe.
Wholesale revenue will drop about 10 percent in the first half of this year, the London-based company said Thursday, sending its shares down as much as 7.1 percent. Burberry also reported a slight drop in second-half sales.
Euronews.com reports that French luxury retailer LVMH saw a fall in shares after it posted first quarter sales below forecasts. Which LVMH owns more than 60 luxury brands including Dior and Louis Vuitton. Where the US market is strong and Europe is holding its own except for France which has seen a fall in tourism as a result of the terrorist murders. Which global sales hit €8.62bn for the three months to March. Also, Hong Kong also under performed. However, LVMH’s watches and jewellery division did received a boost Its like-for-like sales grew 7 percent, against 3 percent the previous quarter.
Seekingalpha.com stresses Michael Kors shares would offer limited upside. Citing after being invested in Michael Kors (NYSE:KORS) for almost a year, but finally sold shares due to a disappointing outlook in the luxury goods industry. Recent results in the industry appear to have backed up the theories that consumer spending has been transitioning away from luxury goods to technology and experiences such as food and travel.
According to Whatech.com, Luxury goods can reach the customers in three ways, through retail, wholesale or online. The wholesale route gives wider market exposure; retail channels give the opportunity for having direct contact with the customers, while the online mode gives flexibility to the customers. Revealing Marketreportsonline.com complete report focuses on the growing affluence and rising consumer consciousness have ensured sustained growth in the global luxury goods market, which is helmed by personal luxury goods at the forefront. Key factors driving this growth are rise in HNWI population, increased internet penetration, rise in urban population, increased number of millionaires and a rise in ageing population.
The report provides an overview of the global luxury goods market including the key trends, growth drivers and challenges associated. Also inside the report forecasted future trend in the global luxury goods market by combining SPSS Inc.’s data integration and analysis capabilities. Regression models have been created by employing various significant variables that have an impact on the consumer goods market.