News

UK: Luxury goods tout growth, some shares seen pricey

Most popular

Should Campari Group be renamed Aperol Group?

Campari Group's Aperol Q3 bonanza - Comment

just-drinks' M&A database - Oct 18

just-drinks speaks to A-B InBev CEO Carlos Brito

MORE

Moet Hennessy Louis Vuitton (LVMH) and other makers of luxury consumer goods are touting optimistic sales and profit targets regardless of stock downgrades which suggest growth may soon lose momentum.Even with a batch of impressive first half earnings from leading companies this week, some analysts on Thursday stuck to a more sober sector view, warning that the companies' outlooks do not match the current expensive ratings of some shares.LVMH, which accounts for the largest single slice of $60 billion worldwide annual luxury goods sales, on Thursday raised its profit growth forecast for the full year and said it expected "very sustained growth" in 2001.At Italian jeweller Bulgari , consolidated net profit doubled on sales which rose by 44 percent in the first six months of 2000.Chief Executive Francesco Trapani said he was positive about the second half on the basis of a new watch line and fragrance. Concerns about a slowdown were unjustified, he said in an interview. "The market remains in very good health," he told Reuters.Number two luxury goods group Richemont said it expected to have a "very good" first half operating profit. Chairman Nikolaus Senn told Richemont's annual meeting sales grew by about 30 percent in the five months to August.First half figures this week from companies, including leather and silks house Hermes and retail group Pinault Printemps Redoute -- which owns 42 percent of Italian fashion house Gucci Group NV -- have landed in line or slightly above market expectations.But analysts have been less sanguine in their assessment of prospects for shares in luxury goods. The sector has been one of the hottest in the consumer goods business over the past two years with some highly contested takeovers and significant growth rates.


Related Content

The LVMH guide to entry-level luxury - Focus

The LVMH guide to entry-level luxury - Focus...

"The worst thing you can do in luxury is send inconsistent brand messages" - Interview Tareef Shawa,...

Is the UK not OK? - The just-drinks analyst

Is the UK not OK? - The just-drinks analyst...

Growth, R&D and Trends - just-drinks' Confidence Survey 2018, Part III

Growth, R&D and Trends - just-drinks' Confidence Survey 2018, Part III...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?