In this week’s Luxury Briefing, I take a deep dive into the most significant group of earnings in recent months, from LVMH, Kering, Hermés, Prada Group, Brunello Cucinelli and EssilorLuxottica – with analyst takes from Bernstein’s Luca Solca. It seems that as brands are adjusting to slow growth, they’re trying to meet customers at all price points, not always successfully. Also, how Frasers is buying up and buying into more of the U.K. luxury space, and what Arnault said on X in reply to the Le Monde investigation. For tips or comments, email me at zofia@glossy.co.Luxury’s biggest groups finally produced some better numbers this week. But whether they’ll amount to a recovery is another question.
LVMH reported €38.6 billion, or approximately $44.5 billion, in first-half revenue, up 2% organically. Second-quarter growth accelerated to 3%, while fashion and leather goods returned to positive territory, up 1%, after seven consecutive quarters of decline. Kering generated €7.2 billion, or approximately $8.3 billion, in first-half revenue, down 3% on a reported basis, but returned to 2% comparable growth in the second quarter. Gucci’s decline narrowed to 2%, from 8% in the previous quarter. Hermès remained in its own category, with revenue up 6% at constant exchange rates to €8.2 billion, or approximately $9.4 billion, and an operating margin of 41.1%.
