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- 27 May 2011
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How the Luxury Industry Performed: January to March 2011

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A comprehensive listing of the latest financial results reported by key luxury brands, as the industry once again enters a period of sales prosperity


Reports of double-digit revenue growth, across the luxury board, seems to have the media championing the return of luxury consumption to pre-crisis levels, citing the end of the global recession. If recent reports are anything to go by, their arguments have some merit: the collective wealth of high-net-worth-individuals increased by 22 percent last year (Knight Frank), whilst spending on luxury goods increased 12 percent (Altagamma).

Analysts however, warn that we are not yet out of the woods, citing examples of Greece and Portugal as the press shine spotlights on stars like Brazil, China and India. Whatever the case, it is undeniable that there is a significant level of optimism in the luxury industry and a set of impressive revenue results recently announced.


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Growth forecasts by Industry, comparing those made in October 2010 and May 2011 (Altagamma Consensus)


In the recently released worldwide markets monitor, developed by Bain & Co in partnership with Altagamma, the growth forecast for luxury sales was increased from 3-5 percent to an almost double 8 percent. According to Reuters ‘boosted by a stronger-than-expected rebound in the United States and Europe and surging demand in China’. In terms of global revenue, Bain estimate that luxury goods will reach a record 185 billion euros in 2011, compared with 172 billion in 2010.

As the major players in our industry announce their quarterly results, we present a round up by industry subsector, to give our readers an indication of the health of the industry in this current climate.

All figures below are Gross Revenue unless otherwise stated





Luxury Conglomerates


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LVMH Group

Recording first-quarter revenue of €5.2bn, LVMH Moët Hennessy Louis Vuitton demonstrated a 17% comparable increase to Q1 2010. The group released an accompanying statement, revealing an intention to focus efforts on developing brands, maintain a strict control over costs and target investments related to the quality, excellence and innovation of products and distribution.

Key divisions reported the following increases in sales:

Wines & Spirits +20%
Fashion & Leather Foods +17%
Perfumes & Cosmetics +9%
Watches & Jewellery +28%
Selective Retailing +20%

Presentation: LVMH


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PPR Luxury

PPR’s reported first-quarter revenues of €3.71bn, of which the Luxury division accounted for €1.12bn: growth of 26.2% when compared to Q1 2010 and the most significant within the group’s portfolio. In an official statement PPR revealed that the ‘excellent start to the year’ was powered by ‘fast-paced growth of the Group’s businesses in emerging countries,’ which accounted for 21% of overall revenue.

Key brands within the luxury division reported the following increases:

Gucci +20%
Bottega Veneta +32%
Yves Saint Laurent +27%
Other Luxury Brands +21%

Presentation: PPR


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Richemont

No doubt buoyed by the 2010 acquisition of Net-a-Porter, Richemont reported Annual revenues of €6,892 million, for 12 months ending 31st March 2011. An increase of 33% as compared to €5,176 million at March 31 2010.

“We had a record year in sales and profit and cash flow. Sales grew by 33% while we had a record year for our Jewellery segment and our Specialist Watchmakers. And our net profit passed the EUR1bn mark, while our cash flow grew by more than EUR1.7bn”, remarked Deputy Chief Executive Richard Lepeu.

Key divisions reported the following increases in sales:

Jewellery Maisons +29%
Specialist Watchmakers +31%
Montblanc Maison +22%
Other businesses +66%

Presentation: Richemont





Fashion & Accessories


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Hermès

Q1 2010: €507.7 million
Q1 2011: €637.1 million
Increase 26%

Press Release: Q1 2011 Results


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Coach

Q3 FY2010: $951 million
Q3 FY2011: $831 million
Increase 14%

Press Release: Q3 FY2011 Results


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AEFFE s.p.a

Q1 2010: €63.6 million
Q1 2011: €73.4 million
Increase 17.4%

Press Release: Q1 2011 Results


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Tod’s s.p.a.

Q1 2010: €208.1 million
Q1 2011: €243.7 million
Increase 17.1%

Press Release: Q1 2011 Results


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Hugo Boss

Q1 2010: €444.2 million
Q1 2011: €539.2 million
Increase 21%

Report: Q1 2011 Results


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Luxottica

Q1 2010: 1,391.7 million
Q1 2011: 1,556.1 million
Increase 11.8%

Press Release: Q1 2011 Results


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Burberry Group PLC
Annual results, year ended March 31 2011

2009/2010 Revenue: £1,280 million
2010/2011 Revenue: £1.5 billion
Increase: 27%

Press Release: 2010/2011 Preliminary Results





Travel & Hospitality


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Accor Hotels
Up & Midscale Hotels (Sofitel)

Q1 2010: €717 million
Q1 2011: €770 million
Increase 5.7%

Presentation: Q1 2011 Results


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Marriott

Q1 2010: $83 million
Q1 2011: $101 million
Increase 22%

Press Release: Q1 2011 Results


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Starwood

Q1 2010: $179 million
Q1 2011: $208 million
Increase 16%

Press Release: Q1 2011 Results


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Hyatt Hotels

Q1 2010: $109 million
Q1 2011: $112 million
Decrease 2.7%

Press Release: Q1 2011 Results




Automotive


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BMW

Q1 2010: €12,443 million
Q1 2011: €16,037 million
Increase 28.9%

Press Release: Q1 2011 Results


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Tata Motors
Jaguar Land Rover

Q3 FY2010: £1,961 million
Q3 FY2011: £2,660 million
Increase 35.6%

Press Presentation: Q3 FY2011 Results


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Daimler AG
Mercedes-Benz Cars

Q1 2010: €11,595 million
Q1 2011: €13,860 million
Increase 20%

Fact Sheet: Q1 2011 Results





Beauty & Wellbeing


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L’Oreal
Luxury Division

Q1 2010: €1,013 million
Q1 2011: €1,117 million
Increase 7.7%

Press Release: Q1 2011 Results


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InterParfums

Q1 2010: $119.4 million
Q1 2011: $133.4 million
Increase 11.7%

Press Release: Q1 2011 Results


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Estée Lauder, +16%

Q3 FY2010: $1.86 billion
Q3 FY2011: $2.17 billion
Increase 16%

Press Release: Q1 2011 Results




Jewellery & Timepieces


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Tiffany & Co

Q1 2010: $634 million
Q1 2011: $761 million
Increase 20%

Source: BBC News


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Bulgari

Q1 2010: €199.1 million
Q1 2011: €254.7 million
Increase 28%

Press Release: Q1 2011 Results


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La Montre Hermès

Q1 2010: €507.7 million
Q1 2011: €637.1 million
Increase 25.5 %





Wines & Spirits


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Pernod-Ricard

Q3 FY2010: €1,543 million
Q3 FY2011: €1,620 million
Increase: 5%

Press Release: Q3 FY2011 Results


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Diageo
Organic net sales growth

Q3 FY2011: 7%

Press Release: Interim Management Statement Q3 2011





To view or download Fondazione Altagamma’s updated studies, on the performances and the forecasts of the world wide luxury markets, please follow the below links

Report: Updated Altagamma Consensus
Report: Updated Altagamma Worldwide Markets Monitor