MILAN, July 25 (Class Editori) – The luxury brands sales in the East continue to grow in double-digit, especially in China, Korea and Japan. This is confirmed by the half-year figures released by two of the world's leading producers, the Italian Moncler and the French group LVMH, which collects some of the best-known names in the global style system, including Dior, Louis Vuitton, Fendi, Lagerfeld, Bulgari.
And along with sales, which represent a performance already particularly indicative of market appreciation, the margins data for both groups also grew at the same rate, despite the different dimensional scale.
Remo Ruffini, the Moncler number one and great strategist, has announced that "in Asia as in the rest of the world, revenues increased by 15% at constant exchange rates accelerating in the second quarter driven by the important contribution of China, Japan and Korea", where sales, in Asia, exceeded 249 million euros out of 570 million in total sales of the first half of this year, thus representing 43% of the entire business of the brand famous for its down jackets.
At current exchange rates, Asia's revenue growth was 18%, barely higher than the global average (+ 16%), which was weighed down by the low performance of Italy, the lowest growth market with +8%, at 68,5 million.
Net profit exceeded 71 million euros, +16% compared to 61.6 million in 2018. During the period, the consolidated gross margin amounted to 437 million euros, with a margin on revenues of 76.6% (+6% compared to the same period of 2018).
The positive moment for Italian luxury in China had been confirmed some weeks ago also from the data of Brunello Cucinelli, who with a 16% increase in sales in Greater China, in the first half of this year, reached 29 million of euro, 10% of the total.
For the menswear company founded by Brunello Cucinelli, which on the global turnover scored +5% in the period, China confirmed itself as the main growth driver.
Performance is a further certification of the popularity of Italian luxury brands in the Chinese market, where consumption, especially in the medium-high class, continues to grow despite the production contrasting signals.
"We are very happy with the performance we had in China, and we continue to direct our growth path to try to be in some way exclusive, both in terms of distribution and in the relationship of respect, trust and sharing that we try to create with the Chinese customer," Cucinelli said.
With very different numbers, but similar trends, Bernard Arnault, number one of LVMH, pointed out that global sales grew by 15% to 25.1 billion euros. "Excellent start of the year", the French manager commented, adding that profitability has also been excellent.
The operating margin rose by 21.1%, substantially in line with the first half of the previous year while net profits rose by 9% to 3.27 billion. At the geographical level, Asia, the USA and Europe recorded excellent performance.
The result of the French group is mainly due to the exploit of the fashion sector, fashion & leather goods, which grew, especially with Dior, by 21% to 10.4 billion euros it rose 18% to 10.42 million. Perfumes and cosmetics reached +9% to 3.26 billion, driven mainly by Sephora. The watch and jewelry division with Bulgari is at the forefront with a +4%. Lastly, wines & spirits registered a +6%. "We enter the second half of the year with confidence," concluded Arnault.
The group strength on the Chinese market is also shown by the performance of DFS, one of its retail brands, whose sales have continued to grow, particularly in Hong Kong and Macao, despite a slowdown in consumption on the two stock exchanges, even following the political turbulence of the last quarter in the capital of the Great Bay Area.
(Source:Class Editori)
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