Annual performance falls short of expectations, Est é e Lauder CEO announces retirement

Est é e Lauder recently announced that its CEO Fabrizio Freda will retire at the end of the 2025 fiscal year. According to the statement, Est é e Lauder has not yet appointed a successor, but the board is making smooth progress in succession planning and has considered internal and external candidates. Fabrizio Freda will lead the Est é e Lauder Group until a successor is found. Analysts believe that the successor's task will be to address the slowdown in sales and sustained weak demand.

Fabrizio Freda joined Est é e Group in 2008 as President and COO, and was promoted to CEO a year later. Prior to this, he had nearly 10 years of experience as a senior executive in Procter&Gamble's Beauty and Health department, with extensive experience in beauty retail management. Under his leadership, Est é e Lauder Group has grown rapidly over the past decade, successfully entering the ranks of the world's top four beauty retail giants through the acquisition of emerging brands such as GLAMGLOW. As a result, it is highly valued by the Lauder family and has consistently high salary levels.

Since 2018, Fabrizio Freda has consistently held the top position in the industry in terms of salary and has kept a significant distance from his peers. At that time, Fabrizio Freda ranked ninth among 200 CEOs across ten industries including technology, finance, and energy with a total salary of $48 million, and was the only beauty group executive to be included in the top ten.

During his tenure, Fabrizio Freda has been implementing a turnaround plan aimed at putting Est é e Lauder back on track and reclaiming market share from competitors such as L'Oreal in the US and China. However, the group has repeatedly lowered its performance guidance in the past year.

According to a statement released by Est é e Lauder on Monday, it is expected that revenue for this fiscal year will decrease by 1% to increase by 2%, lower than analysts' expectations. Bloomberg surveyed analysts who had expected revenue to increase by 5.6% to $16.5 billion, with fourth quarter adjusted revenue of $3.87 billion, expected to be $3.81 billion. The group stated that revenue from high-end beauty products in the Chinese market continues to decline, reflecting low consumer confidence.

According to industry insiders, due to the slow recovery of the tourism industry, Est é e Lauder's duty-free sales in China and other Asian regions have sharply declined. A spokesperson for the group has stated that duty-free channels are Est é e Lauder's highest profit category. The group's tax-free channel sales accounted for 28% in 2021, but in the past two years, this proportion has only been around 10%.

After the release of the performance forecast, Est é e Lauder's stock price fell more than 8% in pre-market trading in the US stock market, with a closing price drop of 2% to $93. Its current market value is about $33.3 billion.

Lao Pu Gold's stock price hits a new high, with a market value approaching 15 billion yuan

Lao Pu Gold's stock price rose over 5% to HKD 89.95 yesterday morning, setting a new high for listing. Hang Seng Index Limited recently announced the quarterly review results of the Hang Seng Index series as of June 30, 2024. All changes will be implemented after the market closes on September 6 and will take effect from September 9. Among them, Lao Pu Gold has been included in the Hang Seng Composite Index, and Anxin International stated that the company is expected to enter the Hong Kong Stock Connect list.

According to the announcement of Laopu Golden Profit, it is expected to achieve a net profit growth of 180% to 205% in the first half of the year, approximately RMB 550 million to RMB 600 million.

Taiping Bird's stock price hits a 6-month low

Taiping Bird announced its performance for the first half of 2024, with the group's revenue falling by 12.66% year-on-year to 3.146 billion yuan and net profit attributable to shareholders falling by 31.73% year-on-year to 171 million yuan.

According to data from Fashion Business News, the group's revenue in the first quarter decreased by 12.92% year-on-year to 1.806 billion yuan, with online revenue falling by 6.08% year-on-year to 516 million yuan, offline revenue falling by 15.36% year-on-year to 1.282 billion yuan, and net profit falling by 26.92% year-on-year to 159 million yuan. It is reported that the company's net profit in the second quarter of this year was only 12.43 million yuan, which is the worst second quarter performance after going public except for the second quarter of 2022.

As of press time, the stock price of Taiping Bird has dropped nearly 7% to 12.7 yuan, with a current market value of approximately 6 billion yuan.

Baoxinniao's net profit plummeted by over 15% in the first half of the year

Men's clothing group Baoxinniao released its 2024 semi annual report, with revenue increasing by 0.36% to 2.48 billion yuan and net profit plummeting by 15.6% to 340 million yuan.

By brand, Hazzy's revenue increased by 0.25% to 860 million yuan, while Le Fei Ye's revenue surged by 32% to 152 million yuan, while Bao Xi Niao fell by 3.7% to 770 million yuan and Bao Niao fell by 2.3% to 500 million yuan.

By channel, the company's franchise sales increased by 7.4%, while e-commerce revenue decreased by 2.3% and direct sales decreased by 3.28%.

As of press time, the stock price of Bao Xi Niao has fallen by 3% to 3.5 yuan, with a current market value of approximately 5.1 billion yuan.

A luxury store in Hong Kong saw a 94% drop in rent, prompting Mango to open a new store in Central with a 60% discount on rent

The underground shops at 23-25 Lei Yuan Shan Road in Causeway Bay, Hong Kong, were leased after being vacant for three months, with monthly rent plummeting by over 94% to 128000 yuan. The shop has a total construction area of approximately 159 square meters, located near Russell Street and facing the large shopping mall, Hysan Place, in the area.

The store was rented by beauty retailer Zhuoyue Tongtong in 2008, with a monthly rent of 580000 yuan. Afterwards, due to luxury brands opening stores in the first tier streets and surrounding areas of Causeway Bay, the rent of the shop skyrocketed. In 2012, it was leased by watch brand Longines, and the monthly rent skyrocketed to 2.3 million yuan, becoming a record high for the rent of the shop. Due to the impact of the epidemic, the store was closed for one year in 2020 and reopened in 2021. After Longines closed down and moved out in February this year, the price of the store was reduced to a monthly rent of 128000 yuan.

Behind the sharp decline in Hong Kong shop rents is the fact that the retail industry in Hong Kong is suffering a heavy blow. According to data, Hong Kong's retail sales fell by nearly 10% in June, with sales dropping to HKD 30 billion, marking the fourth consecutive month of decline.

It is worth noting that Spanish fashion retailer Mango recently opened a new store in Central, Hong Kong, covering an area of approximately 1765 square meters, with rent decreasing by 60% compared to the highest value in 2014. This indicates that international brands still maintain confidence in the Hong Kong market despite a decrease in rent. Local businesses are still struggling to cope with slow recovery in tourist numbers, and the main landlords in high-end shopping areas hope that international brands can fill the gap and support rent.

Chinese consumers' contribution to global luxury goods sales will return to pre pandemic levels

According to the latest report released by Citigroup Research, Chinese tourists will bring significant benefits to the global tourism market and luxury brands. Despite facing macro uncertainty, leisure tourism and experiential consumption remain the main expenses for Chinese consumers. After surveying over 2500 Chinese consumers, the report stated that they have a significant travel demand in the next six months, and their consumption tendency is shifting towards experience and emotional value.

Citi Research predicts that the contribution of Chinese consumers to global luxury goods sales will recover to 35% by the end of 2024, consistent with pre pandemic levels. In addition, Japan has become the most attractive destination for Chinese consumers to purchase luxury goods due to the depreciation of the yen, and promotional prices in Hainan have also shown competitiveness.

LV announces Jude Bellingham as brand ambassador

LV recently announced 21-year-old British football star Jude Bellingham as the new brand ambassador. According to the brand statement, Jude Bellingham showcases his dual talents in football and fashion.

Jude Bellingham plays for Real Madrid, leading the team to win the UEFA Champions League and has been named the best player in La Liga. Prior to this, he made his debut for LV Men's Fashion Creative Director Pharrell Williams' 2024 Spring/Summer collection. As of now, Jude Bellingham has over 36 million followers on Instagram.

Swarovski's parent company saw a 28% increase in profits in the first half of the year

The parent company of Swarovski, Henkel Group, recently released its first half 2024 financial report, with sales increasing by 2.9% to 10.8 billion euros, approximately 85.2 billion yuan, and profits surging by 28.4% to 1.61 billion euros, approximately 12.6 billion yuan.

By department, the sales of the Consumer Brand Business Unit increased by 4.3% to 5.266 billion euros, the sales of the Hairdressing Business Unit increased by 7.3%, and the Nursing Business Unit increased by 3%.

By region, the Asia Pacific market grew by 5.5%, sales in the European market increased by 1.8%, the North American market fell by 1.6%, and the Indian, Middle Eastern, and African markets surged by 21.0%.

Andema announces acquisition of sustainable fashion brand UNLESS Collective

American sports brand Andema announced the acquisition of sustainable fashion brand UNLESS Collective, and founder Eric Liedtke will continue to manage the brand as Executive Vice President of Strategy after the transaction is completed. He worked at Adidas for 26 years and co founded Yeezy with Kanye West.

The brand aims to find alternatives to plastic from plant-based materials through innovative technology and invest them in clothing and footwear production, including launching the first biodegradable sports shoe Degenerate and implementing a recycling program. In addition, we have collaborated with Natural Fiber Welding Inc. to develop high-performance natural materials, which have now been adopted by brands such as Ralph Lauren.

Hoka's parent company sells its brand Sanuk

Hoka's parent company Deckers Group is selling the brand Sanuk to Canadian company Lol ë Brands, and the transaction will be completed on Thursday, but the specific transaction price has not been disclosed.

According to the results released by Deckers Group, the group's sales increased by 22.1% to $826 million in the first quarter ending June 30th. Among them, UGG sales increased by 14% to $200 million, Hoka surged by 29.7% to $550 million, and Sanuk and Teva net sales decreased by about 4% and 28% respectively.

Guess appoints interim CFO

American fashion group Guess has appointed Dennis Secor as interim CFO, replacing Markus Neubrand who had previously resigned, effective August 26th. Dennis Secor served as the CFO of Guess Group from 2006 to 2012, and also held similar positions at Fossil Group and Electronic Arts Canada.

Guess Group has undergone frequent personnel changes recently and announced in May the appointment of Andrew Roser as the Executive Chairman of its Rag&Bone brand.

According to Fashion Business News data, Guess Group's revenue for the first quarter of fiscal year 2024 increased by 4% to $590 million, a 7% increase at fixed exchange rates, with a profit of $13 million, compared to a loss of $11.8 million in the same period last year.

Buccellati becomes the official jewelry partner of Goodwood Racecourse in 2024

Italian luxury jewelry brand Buccellati has become the official jewelry partner of Goodwood Racecourse. This is the brand's second collaboration with horse racing since the 2023 Qatar Goodwood Horse Racing Festival, and it will also participate in the Buccellati Pounding Championships as a sponsor. The silver trophy customized by Andrea Buccellati, Honorary Chairman and Creative Director of the brand, will be presented to the winners of this championship race.

This brand was founded in Milan, Italy and is currently under the umbrella of the Richemont Group. It is jointly managed by members of the Buccellati family. As of now, the brand's stores are located in luxury shopping centers in major cities around the world.

Moncler executives are optimistic about the Chinese market

A senior executive of Italian luxury goods group Moncler recently pointed out that although the Chinese mainland market faces some challenges, the brand has achieved good performance among local consumers in mainland China, and the recovery of the Japanese yen exchange rate will be a key factor for the revival of the luxury goods market in Hainan.

According to the previously released performance of Moncler, the group's revenue in the first half of the year surged by 15% to 1.04 billion euros, with the brand's revenue increasing by 3% to 413 million euros in the second quarter, mainly due to the good performance of the Chinese mainland market and strong growth in the Japanese market. Moncler is optimistic about the long-term growth of the Chinese market and will continue to enhance its market competitiveness.